Coca-Cola Icecek A.S. · BIST:CCOLA
Coca-Cola Icecek A.S — Q1 2016 Earnings Presentation
20 slides from Coca-Cola Icecek A.S's earnings presentation, May 4, 2016
Slide 1: 1Q16 Results
1Q16 Results May 4, 2016 Istanbul
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek’s (“CCI”) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally
Slide 3: Operational Review
Operational Review Burak Başarır - CEO
Slide 4: Highlights of 1Q16
Highlights of 1Q16 • Volume and revenue growth in a challenging environment • Unit case and transaction growth in Turkey • Double digit volume growth and higher profitability in Pakistan • Continued weakness in Central Asia following sharp devaluations • Geopolitical and macroeconomic challenges in
Slide 5: Slow but steady growth in Turkey
Slow but steady growth in Turkey • Transaction growth ahead of unit case growth • Lower volumes but flat transactions in sparkling category • IC share in sparkling up by 2 pp yoy, exceeding 20% • 25% growth in stills, growth in all sub-categories • Revenue per uc grew by 8% in 1Q16, thanks to higher
Slide 6: Pakistan & Middle East delivers 9% volume growth in 1Q16
Pakistan & Middle East delivers 9% volume growth in 1Q16 • 13% volume growth in Pakistan • Effective discount strategy • EBITDA margin expansion • Successful marketing campaigns • Focus on portfolio and package innovations • Low single digit contraction in Iraq • Macro challenges due to soft oil pri
Slide 7: Central Asia volume contracts by 11% in 1Q16
Central Asia volume contracts by 11% in 1Q16 • Kazakhstan and Azerbaijan volumes contract following the devaluations at the end of 2015 • Volume growth turns positive in Turkmenistan and Kyrgyzstan • Gradual price increases to partly mitigate the adverse impacts of devaluations • Rationalizing opex
Slide 8: Financial Review
Financial Review Orhun Köstem - CFO
Slide 9: Introduction to Financial Statements
Introduction to Financial Statements Average Exchange Rates for each Period End of Period Exchange Rates Quarterly Exchange Rate (local currency per USD) YTD Exchange Rate (local currency per USD) 1Q16 1Q15 Δ% 1Q16 2015 Δ% Turkey 2,94 2,46 20% 2,83 2,91 (3%) Pakistan 104,44 101 3% 105 105 0% Kazakhs
Slide 10: Top Line Performance
Top Line Performance • Consolidated revenue up by 8% driven by Turkey operations and foreign currency translation impact of int’l operations • Revenue per uc up by 8% in Turkey thanks to higher IC share and price increases • Revenue per uc down by 12% in international operations due to lower USD ave
Slide 11: Operating Profitability
Operating Profitability Consolidated EBITDA (TLmn) 13.4% 162 11.9% 155 • Consolidated EBITDA down by 4% due to int’l operations • Flat gross margin in Turkey • Turkey EBITDA margin expands by 3.5 pp supported 1Q15 1Q16 by dividend income accruals • Improved profitability in Pakistan • Lower USD aver
Slide 12: Financial Expenses & Net Income
Financial Expenses & Net Income Net Interest Expense (TL mn) Net FX Loss (TL mn) Net Income (TL mn) • Lower net interest expense due to • TL 18 mn net FX gain • TL 29 mn net income in 1Q16 vs. TL appreciation of TL vs. USD • Net USD/TL exposure of USD 485 mn 91 mn loss in 1Q15 as of end 1Q16 12
Slide 13: Leverage and Debt
Leverage and Debt Financial debt (US$ million) Maturity (US$ million) 1.160 1.151 1% 1% 658 6% 3% USD 500m Eurobond 16% 19% + TL & JD & KT USD 100m USPP PKR EUR 77% 77% 158 USD 105 120 73 36 2015 1Q16 2016 2017 2018 2019 2020 2023 Net Debt (US$ million) Net Debt / EBITDA* 911 2,45 2,26 2,29 846 816
Slide 14: Free Cash Flow
Free Cash Flow Net Operating Cash Capex (TL mn) Free Cash Flow (TL mn) Inc. Working Capital (TL mn) 18.9% 10.7% 1Q15 1Q16 -140 -227 *NWC/Sales **Capex/Sales Lower NWC/Net Revenue FCF supported by lower capex spending 14
Slide 15: Commodity & Raw Material FX Hedging Status 2016
Commodity & Raw Material FX Hedging Status 2016 (1) Hedge percentage: Excluding Turkey and Azerbaijan (2) Hedge percentage: Only price fixing through suppliers (3) Turkey Raw Material FX Hedging 15
Slide 16: Guidance
Guidance Burak Başarır – CEO
Slide 17: Guidance - 2016
Guidance - 2016 Guidance maintained: Consolidated – Low-mid single digit volume growth o Turkey – Low single digit volume growth o International – Low-mid single digit volume growth ● Net revenue growth > volume growth ● Flat consolidated EBITDA margin, compared to 2015 17
Slide 18: Q&A
Q&A
Slide 19: Closing Remarks
Closing Remarks
Slide 20: Thank you!
Thank you!