Embotelladora Andina SA · BCS:ANDINA_A
Embotelladora Andina SA — 2Q18 Earnings Presentation
32 slides from Embotelladora Andina SA's earnings presentation, 2018
Slide 1: 2Q18 Corporate Presentation
Agenda Page 2Q18 [CLIENT NAME] Corporate Presentation 2Q18
Slide 2: #goPaperless
In line with our constant effort to improve Agenda communication with the financial market and at the same time reduce waste generation, Page we have developed the Coca‐Cola Andina IR App. This is an investor relations application, and we will begin a 100% digital communication plan of our Financial
Slide 3: 1. Company Description
1. Company Description Agenda Page [CLIENT NAME]
Slide 4: History
History Merger with KO Polar (incorporation of new During April we began Coca-Cola System Andina Andina listed on territories in Argentina, distributing AdeS joint venture (50/50) becomes the the NYSE. Chile & Paraguay). products, reinforcing for the water and Coca-Cola Franchise TCCC acquires Andin
Slide 5: A regional and diversified platform (FY17)
A regional and diversified platform (FY17) Volume Revenues EBITDA 9% 8% 11% 30% 30% 34% 28% 30% 23% 32% 32% 33% 756 MM UCs US$2,848 MM US$520 MM Chile Brazil Territories: Antofagasta, Atacama, Coquimbo, Territories: Rio de Janeiro, Espíritu Santo, part of Metropolitan Region, San Antonio, Cachap
Slide 6: Ownership (As of December 31, 2017)
Ownership (As of December 31, 2017) Controlling Group 49.8% 55.7% 43.8% Series A Series B Others 26.7% Coca-Cola 14.7% ADRs 4.2% Chilean Pension Funds 4.6% The Controlling Group is composed of 5 Chilean families with equal parts, that have a shareholders’ agreement which includes TCCC. Series A elec
Slide 7: Superior manufacturing and logistics capabilities
Superior manufacturing and logistics capabilities Argentina Brazil 3 SSD production facilities with a 2 production facilities with a total total of 16 lines of 25 lines Additional 2 production facilities ◦ Average utilization range from for tetra juices and 1 for mineral 59% to 72% water with
Slide 8: Committed to Sustainable Development
Committed to Sustainable Development Generating Social, Economic and Environmental Value in all of our actions Source: Company filings and public releases 7
Slide 9: 2. Market Description
Agenda 2. Market Description Page [CLIENT NAME]
Slide 10: Coca-Cola Andina at a Glance: Market Structure (FY2017)
Coca-Cola Andina at a Glance: Market Structure (FY2017) Product Mix Soft Drinks Sof Drinks 78% Waters 10% Juices &Others 9% Beer 3% Format Mix Non Returnables 59% Returnables 38% Post Mix 3% Channel Mix Mom & Pops 41% Wolesalers 18% Supermarkets 29% On Premise12% Market Share Per Cápita Consumption
Slide 11: Market Structure (FY2017)
Market Structure (FY2017) ARGENTINA BRAZIL Product Mix Product Mix Sof Drinks 83% Waters 12% Juices & Others 5% Sof Drinks 81% Waters 2% Juices & Others 9% Beer 8% Format Mix Format Mix Non Returnables 51% Returnables 48% Post Mix 1% Non Returnables 78% Returnables 20% Post Mix 2% Channel Mix Channe
Slide 12: Diversified brand portfolio across segments and geographies
Diversified brand portfolio across segments and geographies (As of December 31, 2017) Argentina Brazil Chile Paraguay SSDs1 Juices and other NCBs1 Water Beer Source: Company filings and public releases 1 SSDs: sparkling soft drinks; NCBs: non-carbonated soft drinks 2 Total includes 0.1mmUC distribut
Slide 13: 3. Financial Highlights
3. Financial Highlights Agenda Page [CLIENT NAME]
Slide 14: Track record of profitability, revenue and EBITDA growth
Track record of profitability, revenue and EBITDA growth, diversification and strong cash generation Sales volume (million UCs) Revenues (CLP$ mm) Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay CAGR -0.2% 830.6 819.9 1,797,200 1,877,394 1,777,459 1,848,878 763.0 778.9 756.2 1,521,68
Slide 15: Solid Financial Position
Solid Financial Position Increase in Net Financial Debt is mainly explained by: - US$575MM Bond Issue for the Acquistion of Ipiranga (2013)1 - UF5 million Chilean Bond Issued on Sept 2013, UF3 million Chilean Bond Issued on Apr 2014 - Embotelladoras Coca-Cola Polar Merger (2012) Financial Debt (CLP$
Slide 16: Solid Financial Position
Solid Financial Position Financial Ratios (I) Financial Ratios (II) Net Financial Debt / EBITDA Financial Debt/Equity Ratio (1) Net Financial Debt (2)/Equity Ratio Net Financial Debt / EBITDA (w/o MtM CCS) (3) / EBITDA Debt Coverage Ratio (4) 2.2 1.0 1.9 1.9 0.9 0.9 0.9 1.0 2.3 1.8 1.7 0.8 2.0 1.6 1
Slide 17: Consolidated Financial Highlights (Billion Ch$)
Consolidated Financial Highlights (Billion Ch$) 2012P 2013 2013P 2014 2015 2016 2017 1Q17 1Q18 2Q17 2Q18 Total Volume (MUCs) 749 763 826 831 820 779 756 202 204 161 165 Net Sales 1,477 1,522 1,640 1,797 1,877 1,777 1,849 501 476 405 374 Operating Income 173 171 179 187 216 214 239 78 80 35 38 Operat
Slide 18: Consolidated Financial Highlights (Million US$)
Consolidated Financial Highlights (Million US$) 2012P 2013 2013P 2014 2015 2016 2017 1Q17 1Q18 2Q17 2Q18 Total Volume (MUCs) 749 763 826 831 820 779 756 202 204 161 165 Net Sales 3,038 3,071 3,311 3,151 2,868 2,627 2,848 765 791 610 602 Operating Income 355 346 361 328 329 316 368 119 132 52 61 Oper
Slide 19: Consolidated Balance Sheet (as of June 30, 2018)
Consolidated Balance Sheet (as of June 30, 2018, in million USD and million Ch$) Million USD: Assets Liabilities and Equity Cash and Cash Equivalents 175 Current Financial Liabilities 85 Current Assets 435 Other Current Liabilities 412 Non current Assets + Others 2,274 Non-Current Financial Liabilit
Slide 20: Dividends and Market Cap (as of June 30, 2018)
Dividends and Market Cap (as of June 30, 2018) Dividend Distribution* Market Cap (million Ch$) (billion USD) 4.2 - 3.4 3.5 21,369 2.7 2.5 76,205 67,586 52,081 53,671 41,200 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Dividend Yield** 2013 2014 2015 2016 2017 Series A 2.9% 2.8% 3.7% 3.5% 3.3% S
Slide 21: 4. Strategy
4. Strategy Agenda Page [CLIENT NAME]
Slide 22: Expansion potential through organic and inorganic growth avenues
Expansion potential through organic and inorganic growth avenues Organic growth Inorganic growth Superior organic growth within the Key role in the consolidation process of the Coca-Cola system Coca-Cola system in Latin America Fuel growth in SSD business Inorganic expansion in line with TCCC go
Slide 23: Appendix
Appendix Gtii6lg »NDINA
Slide 24: Argentina: Main Financial Highlights (Local Currency)
Argentina: Main Financial Highlights (Local Currency (millions)) 2012P 2013 2014 2015 2016 2017 1Q17 1Q18 2Q17 2Q18 Sales Volume (MUC) 200 224 229 234 219 211 57 60 44 43 Net Sales 3,690 4,898 6,541 8,903 11,343 14,203 3,582 4,578 2,849 3,576 Operating Income 311 398 428 829 1,198 1,588 512 770 212
Slide 25: Brazil: Main Financial Highlights (Local Currency)
Brazil: Main Financial Highlights (Local Currency (millions)) 2012P 2013 2013P 2014 2015 2016 2017 1Q17 1Q18 2Q17 2Q18 Sales Volume (MUC) 253 243 305 306 291 266 249 64 65 56 56 Net Sales 2,030 2,142 2,657 2,959 3,059 3,037 2,976 791 809 665 683 Operating Income 276 257 290 354 378 369 414 124 139 7
Slide 26: Chile: Main Financial Highlights (Local Currency)
Chile: Main Financial Highlights (Local Currency (millions)) 2012P 2013 2014 2015 2016 2017 1Q17 1Q18 2Q17 2Q18 Sales Volume (MUC) 233 235 232 234 232 231 65 62 47 50 Net Sales 475,824 477,918 492,072 514,733 540,427 551,873 151,295 147,712 118,298 126,227 Operating Income 65,941 66,620 56,460 63,05
Slide 27: Paraguay: Main Financial Highlights (Local Currency)
Paraguay: Main Financial Highlights (Local Currency (millions)) 2013 2014 2015 2016 2017 1Q17 1Q18 2Q17 2Q18 Sales Volume (MUC) 61 63 61 62 65 17 18 13 16 Net Sales 968,523 1,010,735 1,033,215 1,107,678 1,227,001 309,472 353,045 249,978 313,475 Operating Income 129,747 157,306 176,418 199,617 221,01
Slide 28: Argentina 2017
KQE@ 2017 Argentina i a» 6 San Juan Sales Sales by Sales by Mendoza Format Channel Flavor Soft Senteay Drinks Drinks Cérdoba re a wo — ee entre Roe Al Traditional 61h La Pampa NowRenerpaiae : Neuquén Rio Negro Chubut Santa Cruz Tierra del Fuego & Western Province of Buenos Aires Total Per Capita Ann
Slide 29: Brazil 2017
BO® 2017 Brazil = ie] Rio de Janeiro Sales ae Sales by Sales by Espiritu Santo Format Chi Flavor Soft Part of Sao Paulo Drinks Minas Gerais Total Per Capita Annual Consumption (8 oz. bottles) 261 3 Juices Softdrinks &Others | Waters Beers 220 17 6 18 Total Sales Volume (MUCs) ans 9 Soft drinks & Oth
Slide 30: Chile: Total Per Capita Annual Consumption
Total Per Capita Annual Consumption (8 oz. bottles) 510 Soft drinks Juices & Others Waters 388 36 86 Total Sales Volume (MUCs) 231.0 Soft drinks Juices & Others Waters 157.7 34.3 39.0 Market Share (%)* Soft drinks Juices & Others Waters 67.5 35.7 41.2 * Source: AC Nielsen Franchise Extension 398 tho
Slide 31: Paraguay: Total Per Capita Annual Consumption
“Total Per Capita Annual Consumption (8 oz. bottles) 225 Yen 407 thousand km? Soft drinks Juices & Others Waters 187 WW 23 Total Sales Volume (mucs) 65.0 Soft drinks Juices & Others Waters 54.1 43 6. 6 Market Share (%)* Soft drinks Juices & Others Waters 68.9 43.2 33.4 * Source: AC Nielsen ; 57 thou
Slide 32: 1Q18 Corporate Presentation
Agenda Page 1Q18 [CLIENT NAME] Corporate Presentation1Q18