Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES

Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes Biracılık ve Malt Sanayii A.Ş. — 9M2017 Earnings Presentation

27 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Nov 3, 2017

  1. Slide 1: 9M2017 Conference Call

    v 9M2017 CONFERENCE CALL November 3, 2017

  2. 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

  3. Slide 3: General Overview & Operating Environment

    GENERAL OVERVIEW & OPERATING ENVIRONMENT

  4. Slide 4: Key Highlights on Consolidated Performance

    Key Highlights on Consolidated Performance Volume up 4.9% in 3Q2017 and 4.6% in 9M2017 y-o-y  Growth momentum continued in international beer operations and soft drinks  9M2017 performance in line with our guidance of mid single digit growth Revenue up 23.5% in 3Q2017 and 23.3% in 9M2017 y-o-y, ou

  5. Slide 5: Consolidated Performance – 9M2017

    Consolidated Performance – 9M2017 SALES VOLUME NET SALES REVENUE EBITDA (BNRI) & EBITDA (BNRI) Margin 18.7% 17.8% mn TL mn TL mhl 70.4 73.7 10,188.6 8,265.0 1,547.7 1,810.5 9M2016 9M2017 9M2016 9M2017 9M2016 9M2017 BREAKDOWN* 6% 11% 15% 16% 21% 19% 68% 66% 78% Turkey International Soft 5 *Breakdowns

  6. Slide 6: Soft Drinks Volume Development

    Soft Drinks Volume Development Volume Breakdown by Country* %4.7 Others 7% *Breakdown is on a combined basis 965.1 1,010.3 Iraq Kazakhstan 8% 509.8 9% 482.1 Turkey m u/c 50% Pakistan 483.0 500.6 26% Turkey International  Turkey delivered 5.0% volume growth in 3Q2017 with sparkling recording its hig

  7. Slide 7: Beer Volume Development

    Beer Volume Development 16.3 15.7 Total beer group sales volume up by 2.2% in 3Q2017 and 4.1% in 9M2017 11.9 mhl 11.0 Russian beer market estimated to be down mid-single digit in 9M2017;  Ongoing effects of PET regulation and downsizing 4.6 4.4  Weak consumer sentiment and negative disposable inco

  8. Slide 8: Turkey Beer Operations

    Turkey Beer Operations DOMESTIC SALES VOLUME MARKET SHARE* Other 0% Tuborg Efes Turkey 38% 62% 4.3 4.0 9M2016 9M2017 Efes Turkey Tuborg Other  Turkey beer market is estimated to be flat in 3Q2017  Domestic volumes recorded a slight growth of 0.6% in 3Q2017 helped by;  Successful execution post th

  9. Slide 9: International Beer Operations

    International Beer Operations EFES RUSSIA MARKET SHARE* mhl 11.0 11.9 Efes RUSSIA Efes RUSSIA 15% 15% 9M2016 9M2017 Carlsberg Carlsberg  EBI volumes up by 3.3% in 3Q2017 despite cycling a strong base of 11%; 31% 32%  Strong performance in Kazakhstan and Georgia Inbev Inbev  Growth momentum mainta

  10. Slide 10: Beer Group Strategy

    BEER GROUP STRATEGY BRANDS Provide choice and innovation to consumers: Grow brand love E XECUTION Excell in customer collaboration availability and point of sale activation E FFICIENCY Build competitive advantage through lean and efficient operations RELATIONS Focus on employees, customers, regulato

  11. Slide 11: Financial Overview

    FINANCIAL OVERVIEW

  12. Slide 12: Anadolu Efes Consolidated Performance – 9M2017

    Anadolu Efes Consolidated Performance – 9M2017 ANADOLU EFES CONSOLIDATED (TL mn) 9M2016 9M2017 Change (%) Volume (mhl) 70.4 73.7 4.6% Net Sales 8,265.0 10,188.6 23.3% Gross Profit 3,311.0 3,951.2 19.3% EBIT (BNRI) 934.5 1,090.6 16.7% EBITDA (BNRI) 1,547.7 1,810.5 17.0% Net Income* 364.2 343.9 -5.6%

  13. Slide 13: Beer Group Performance – 9M2017

    Beer Group Performance – 9M2017 TURKEY BEER INTERNATIONAL BEER BEER GROUP (TL mn) 9M2017 vs 9M2016 9M2017 vs 9M2016 9M2017 vs 9M2016 Volume (mhl) 4.4 -5.7% 11.9 8.1% 16.3 4.1% Net Sales 1,146.4 3.5% 2,153.5 47.6% 3,324.0 28.3% Gross Profit 667.8 1.8% 911.7 36.3% 1,598.0 19.3% EBIT (BNRI) 142.1 -27.4

  14. Slide 14: Beer Group Free Cash Flow – 9M2017

    Beer Group Free Cash Flow – 9M2017 Beer Group Free Cash Flow (TL mn) 9M2016 9M2017 EBITDA 548.2 593.1 Change in Working Capital -171.2 -78.3 Income Taxes & Employee Benefits Paid -47.0 -51.5 CAPEX, net -144.6 -210.7 Net Financial Income /(Expense) 1.7 2.4 FCF 187.1 255.0 Other investing activities (

  15. Slide 15: Net Leverage Ratio: Net Debt / EBITDA (BNRI)

    BALANCE SHEET FLEXIBILITY ◉ 9M2017 Net Leverage Ratios are within comfortable area Net Leverage Ratio:Net Debt / EBITDA (BNRI) Anadolu Efes Consolidated Beer Group 1.8 ◉ 77% of cash is hold as hard 1.8 ◉ 69% of cash is hold as hard times 1.5 times currency 1.5 currency ◉ 99% of debt is in hard ◉ 97%

  16. Slide 16: Maturity Schedule

    BORROWING MIX & LIQUIDITY PROFILE ◉ Easily manageable debt repayment schedule ◉ Weighted average maturity of debt for  Beer Group is app. 4.0 years and  Anadolu Efes is app. 3.7 years 778 718 523 523 500 520 154 142 142 Maturity Schedule 94 111 BEER 60 59 CCI 49 46 35 43 AEFES 20 17 17 3 2017 2018

  17. Slide 17: Interest Breakdown

    INTEREST BREAKDOWN ◉ Significant portion of debt is fixed, minimized interest rate risk ANADOLU EFES BEER GROUP Floating : 26% Floating : 15% Floating : 21% Floating : 12% Fixed : 74% Fixed : 85% Fixed : 79% Fixed : 88% 9M2016 9M2017 9M2016 9M2017 17

  18. Slide 18: AEFES Consolidated Financial Income/(Expense) – 9M2017

    AEFES Consolidated Financial Income/(Expense) – 9M2017 Financial Income / (Expense) Breakdown 9M2016 9M2017 Interest income 53.5 79.4 Interest expense -153.4 -179.5 Foreign exchange gain /(loss) -66.5 -192.3 Other financial expenses (net) -18.3 -17.2 Gain/(loss) on derivative transactions -5.7 0.0 N

  19. Slide 19: AEFES Consolidated Free Cash Flow – 9M2017

    AEFES Consolidated Free Cash Flow – 9M2017 Anadolu Efes Free Cash Flow (TL mn) 9M2016 9M2017 EBITDA 1,544.8 1,801.9 Change in Working Capital -183.6 -156.7 Income Taxes & Employee Benefits Paid -85.8 -80.3 CAPEX, net -489.4 -584.8 Net Financial Income /(Expense) -48.7 -22.0 FCF 737.3 958.1 Other inv

  20. Slide 20: Financial Priorities

    FINANCIAL PRIORITIES ◉ Sustain consolidated cash flows through; ◉ Efficiency improvements via savings  focus on working capital optimization ◉ Managing impact of F/X volatility on operations  optimized capex policy ◉ Commitment to Investment Grade Ratings  sticking to tight balance sheet manageme

  21. Slide 21: Closing Remarks

    CLOSING REMARKS

  22. Slide 22: Long Term Key Priorities

    LONG TERM KEY PRIORITIES Continue to generate value by margin improvement and FCF generation through our priorities ◉ Capitalizing on our strong brand portfolios Beer ◉ Achieving optimal brand & SKU mix ◉ Excelling in execution ◉ Focusing on quality market share ◉ Strong cash flow generation with sp

  23. Slide 23: 2017 Guidance

    2017 GUIDANCE Sales Volume: Mid-single digits growth on a consolidated basis Total Beer: Mid-single digit growth Turkish beer market: Flattish Turkey own beer: Down low-single digit Russian beer market: Down low-single digit Russian own beer: Outperformance of beer market Consolidated Soft Drinks: M

  24. Slide 24: Q&A Session

    ANADOLU EFES

  25. Slide 25: Appendix

    APPENDIX

  26. Slide 26: Gross & Net Debt

    GROSS & NET DEBT Anadolu Efes Consolidated Beer Group 9M2016 9M2017 9M2016 9M2017 5,418 8,147 TOTAL FINANCIAL DEBT (m TL) 2,179 2,541 TOTAL FINANCIAL DEBT (m TL) TOTAL CASH & EQUIVALENTS (m TL) TOTAL CASH & EQUIVALENTS (m TL) 2,264 5,087 1,023 1,413 NET DEBT (m TL) 1,156 1,129 NET DEBT (m TL) 3,154

  27. Slide 27: FX Rates

    FX RATES 9M2016 9M2017 Δ% AVG 2.93 3.59 22.6% USD/TL PE 3.00 3.55 18.6% AVG 3.27 4.00 22.2% EUR/TL PE 3.36 4.19 24.7% AVG 68.37 58.33 -14.7% USD/RUB PE 63.16 58.02 -8.1% AVG 344.57 323.27 -6.2% USD/KZT PE 334.93 341.19 1.9% AVG 25.48 26.46 3.9% USD/UAH PE 25.91 26.52 2.4% AVG 19.89 18.87 -5.1% USD/M

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