Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Q1 2019 Earnings Presentation
19 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, May 9, 2019
Slide 1: 1Q2019 Conference Call Presentation
1Q2019 CONFERENCE CALL PRESENTATION 09.05.2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain certain forward-looking statements concerning our future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available
Slide 3: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT Can Çaka CEO & Beer Group President Strictly Confidential 3
Slide 4: 1Q2019 Highlights
1Q2019 Highlights Unless stated otherwise, the figures from hereon are based on proforma numbers (including the ABI merger in Russia & Ukraine for 1Q2018) and excluding IFRS16 impact for 1Q2019. Volume growth of 12.7% on reported basis Revenue up by 46.5% on reported and 27.5% and 0.4%*on proforma b
Slide 5: Diversified Business Yielding Growth Despite Challenges
Diversified Business Yielding Growth Despite Challenges Excluding IFRS 16 EBITDA (BNRI) & SALES VOLUME NET SALES REVENUE EBITDA (BNRI) Margin 9.8% 9.4% 21.2 21.3 3,968.6 3,111.9 371.3 306.0 mn TL mn TL mhl 1Q2018 1Q2019 1Q2018 1Q2019 1Q2018 1Q2019 Proforma Proforma Proforma Turkey Beer 4% 9% 6% Shar
Slide 6: Solid Growth in Total Beer Volumes Through International Markets
Solid Growth in Total Beer Volumes Through Robust Performance of International Markets BEER GROUP TURKEY BEER INTERNATIONAL BEER 6.7 6.4 5.8 mhl 5.4 mhl mhl 1.0 0.9 1Q2018 1Q2019 1Q2018 1Q2019 1Q2018 1Q2019 Proforma Proforma In 1Q2019 EBI volumes up by; In 1Q2019 total beer group sales volume up
Slide 7: Focus on Quality Growth in a Challenging Environment
Focus on Quality Growth in a Challenging Environment SALES VOLUME VOLUME BREAKDOWN* BY COUNTRY Others Iraq 6% 261.9 257.1 9% Kazakhstan 13% Turkey 123.6 International 52% m u/c 126.4 135.5 133.5 Turkey Pakistan 21% 1Q2018 1Q2019 *Breakdown is on a combined basis Consolidated sales volume declined
Slide 8: Financial Overview
FINANCIAL OVERVIEW N. Orhun Köstem Chief Financial Officer
Slide 9: Operational Savings and Synergies Offset Input Cost Pressures
Operational Savings and Synergies Offset Input Cost Pressures ANADOLU EFES TOTAL BEER TURKEY BEER EBI 28% Net Sales 3,969 3,112 36% 41% 1,279 1,740 21% 963 1,357 310 374 1Q2018 Proforma 1Q2019 1Q2018 Proforma 1Q2019 1Q2018 1Q2019 1Q2018 Proforma 1Q2019 Margin: 31.8% 30.7% 31.9% 30.0% 54.3% 49.4% 24.
Slide 10: Free Cash Flow
Free Cash Flow Beer Group 103 -32 -130 (mn TL) 72 -20 -7 EBITDA Change in Income Taxes & CAPEX, net Net Financial FCF Working Capital Employee Income Anadolu Efes -83 Benefits Paid /(Expense) 393 -66 -305 (mn TL) -86 -147 EBITDA Change in Income Taxes & CAPEX, net Net Financial FCF Working Capital E
Slide 11: Balance Sheet FX Exposure Mitigated
Balance Sheet FX Exposure Mitigated... Hedged majority of outstanding debt via various instruments; both at Anadolu Efes & Beer Group level December 2018 March 2019 58% of our debt is hedged Anadolu Efes Unhedged Hedged Unhedged through Net Investment Hedged 42% 42% 58% 58% Hedge and CCS as of 1Q201
Slide 12: Leverage ratios at healthy levels despite currency devaluations
Leverage ratios at healthy levels despite currency devaluations… Net Debt / EBITDA (BNRI) Maturity Schedule* 515 Anadolu Efes Consolidated 500 1.7 -65% of cash is hold as hard currency 193 1.6 M USD 166 times -82% of debt is in hard currency 141 123 (58% of our debt is hedged through Net Investment
Slide 13: Closing Remarks
CLOSING REMARKS Can Çaka CEO & Beer Group President
Slide 14: Priorities for 2019 and Beyond
Priorities for 2019 and Beyond • Efficient revenue management to offset volume pressures resulting in solid growth in all business lines • Leverage on our FINANCIAL DISCIPLINE and continue managing our balance sheet to deliver robust free cash flow generation • Invest in: PEOPLE BRANDS CORPORA
Slide 15: Q&A Session
Q&A SESSION Can Çaka N. Orhun Köstem CEO & Beer Group President Chief Financial Officer
Slide 16: Appendix
APPENDIX
Slide 17: Detailed 2019 Guidance
Detailed 2019 Guidance There is no change to our previous outlook for the time being. Our 2019 guidance reflects reported financials where 2018 numbers include 9-months ABI-Efes impact and 2019 expected numbers include 12-months. Reference to “proforma” means 12 month ABI-Efes impact in 2018. REPORT
Slide 18: FX Rates
FX Rates 1Q2018 1Q2019 Δ% AVG 3.81 5.36 40.8% USD/TL PE 3.95 5.63 42.5% AVG 4.68 6.09 30.2% EUR/TL PE 4.87 6.32 29.8% AVG 14.94 12.33 -17.5% TL/RUB PE 14.50 11.50 -20.7% AVG 84.91 70.50 -17.0% TL/KZT PE 80.61 67.52 -16.2% AVG 7.17 5.09 -29.0% TL/UAH PE 6.72 4.84 -28.0% AVG 4.40 3.20 -27.3% TL/MDL PE
Slide 19: Changes in Accounting Principles that Impact Financial Tables for 1Q
Changes in Accounting Principles that Impact Financial Tables for 1Q IFRS 16 IMPLEMENTATION IFRS 3 & BUSINESS COMBINATION • Adoption of IFRS 16 “Lease” starting from 01.01.2019 REPRESENTATION with simplified approach • “Proforma” figures for 1Q2018 assume; • 1Q2018 figures has not been restated, as
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