Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (August 2013)
60 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, Aug 29, 2013
Slide 1: Anadolu Efes Investor Presentation
ANADOLU EFES Investor Presentation ANADOLU EFES
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: Anadolu Efes – A Regional Beverage Powerhouse
Anadolu Efes – A Regional Beverage Powerhouse Beer Business FOCUS IN TURKEY & CIS 18* breweries in 6* Countries 43.7 mhl* Beer Capacity 7 malteries with 293,656 tons Malt Capacity Coca-Cola Business FOCUS IN TURKEY, CENTRAL ASIA & MIDDLE EAST 23 bottling plants in 10 countries 1,198 million unit cas
Slide 4: Anadolu Efes' Structure
Anadolu Efes’ Structure SABMiller Harmony Ltd. 24.0% Yazıcılar Holding 23.6% Özilhan Sınai Yatırım 13.5% Anadolu Endüstri Holding 6.0% Public 33.0% ANADOLU EFES 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS 25.6% COCA-COLA İÇECEK1 TURKEY BEER OPERATIONS Public (CCI) INTERNATIONAL BEER OPERATIONS COCA-
Slide 5: Rapidly Growing Beverage Company
Rapidly Growing Beverage Company 646 m 601 m 612 m 494 m 511 m 306 m 327 m 297 m 36 36 36 36 42 25 27 27 11 11 12 15 15 15 15 16 2005 2006 2007 2008 2009 2010 2011 2012 # of Countries # of Plants Population Served 5
Slide 6: Operating Markets
Operating Markets TURKEY RUSSIA KAZAKHSTAN Pop: 75.6 mn* Pop: 141.9 mn Pop: 16.7 mn GDP per cap: $10,412* GDP per cap: $13,765 GDP per cap: $12,021 MOLDOVA GEORGIA UKRAINE Pop: 3.6 mn Pop: 4.5 mn Pop: 45.4 mn GDP per cap: $2,136 GDP per cap: $3,514 GDP per cap: $3,971 AZERBAIJAN PAKISTAN KYRGYZSTAN
Slide 7: Consolidated Sales Volume Development
Consolidated Sales Volume Development CAGR (07-12) 9% 52.7 43.2 44.8 42.5 42.5 40.6 37.8 38.9 34.6 mhl 14.8 2007 2008 2009 2010 2011 2012 1H2012 1H2013 1H2012 1H2013 Reported Restated Reported Proforma Beer Soft Drinks Breakdown of Sales Volume*- 1H2013 International Turkey Beer Beer 9% 22% Soft Dri
Slide 8: Consolidated Financial Performance
Consolidated Financial Performance Consolidated Net Sales Revenue ’07-’12 CAGR 16% 6,416.8 million TRL 4,761.3 4,563.5 4,563.5 4,453.3 4,168.8 3,668.9 3,811.1 3,030.4 2,240.0 2007 2008 2009 2010 2011 2012 1H2012 1H2013 1H2012 1H2013 Reported Restated Reported Proforma Breakdown of Net Sales Revenue*
Slide 9: Consolidated EBITDA (BNRI)
Consolidated Financial Performance ’07-’12 Consolidated EBITDA(BNRI)* CAGR 12% 23.9% 23.3% 24.1% 24.4% 23.7% 20.0% 20.5% 20.2% 17.8% 17.8% million TRL 1,295.9 1,019.0 916.6 953.4 854.7 913.8 810.7 810.7 723.2 530.6 2007 2008 2009 2010 2011 2012 1H2012 1H2013 1H2012 1H2013 Reported Restated Reported
Slide 10: Net Financial Indebtedness
Net Financial Indebtedness Net Debt/EBITDA* 2.4 x 0.3 x 1.8 x 1.9 x Gross Debt 736.9 213.5 1,094.5 2,046.9 Cash Position 130.8 156.7 330.2 624.6 1,422.3 million USD 764.3 606.1 56.8 Turkey Beer EBI CCI** Anadolu Efes Consolidated * Proforma EBITDA(BNRI) is used for Anadolu Efes, EBI and CCI 10
Slide 11: Debt Maturity & Currency Breakdown
Debt Maturity & Currency Breakdown TURKEY BEER EBI CCI 2015 2023 2% 11% 2013 2020 2013 2016+ 13% 2018 7% 14% 20% 2014 2016 9% 15% 2014 0.3% 39% 2013 2015 2016+ 2015 39% 3% 67% 2014 4% 56% EUR Other Other 7% TL 6% 3% 7% USD USD 93% 87% USD 97% 11 Numbers may not add up to 100 due to rounding. Numbers
Slide 12: Beer Operations
Beer Operations ANADOLU EFES
Slide 13: Benefiting From Advantageous Position In A Geography With Strong Growth Potential
Benefiting From Advantageous Position In A Geography Highlighted With Strong Growth Potential Why this geography? Large population ( ~660 million people) Room to develop per capita consumption levels Developing economies & rising disposable incomes Trends supporting beer consumption like wes
Slide 14: Managing Diversity is the Key to Success
Managing Diversity is the Key to Success TURKEY RUSSIA 1 lt Pure Alcohol Consumption per Capita* 18 lt 59 % Beer Share in Total Pure Alcohol Consumption* 38 % 13 lt Beer Consumption per Capita** 71 lt 83 %*** Market Share 16 %**** High Advertising Restrictions High * Euromonitor figures represent 20
Slide 15: Per Capita Beer Consumption in Operating Markets
Per Capita Beer Consumption in Operating Markets & in Some Selected Countries 11.0% Georgia 8.0% China CAGR Growth 2007 - 2012 (%) 5.0% Turkey 2.0% Poland Moldova -1.0% 0 20 40 60 80 100 120 140 160 Uzbekistan Ukraine Russia West Europe Bulgaria Romania Germany Czech Republic -4.0% Greece Kazakhstan
Slide 16: Breakdown Of Pure Alcohol Consumption
Breakdown Of Pure Alcohol Consumption 100% 14% 14% 17% 90% 20% 22% 19% 26% 25% 24% 33% 80% 38% 51% 70% 20% 25% 38% 47% 21% 30% 41% 9% 60% 34% 10% 36% 50% 12% 40% 30% 60% 58% 53% 56% 48% 48% 51% 20% 42% 43% 39% 39% 37% 10% 0% Austria Czech Rep. Denmark Finland Germany Ireland Netherlands Poland Spain
Slide 17: Turkey Beer Operations
Turkey Beer Operations ANADOLU EFES
Slide 18: Developments in Turkey Beer Operations
Developments in Turkey Beer Operations Sustainable Volume Performance* New product launches along with improved ’07-’12 CAGR 3% availability of our products via investments in both on & off-premise channels and 8.5 8.5 7.6 8.5 8.4 8.6 successful trade executions in 1H2013 4.5 contributed to sales
Slide 19: Exponential Rise In Excise Tax For Beer In Turkey
Exponential Rise In Excise Tax For Beer In Turkey In The Last Few Years 0.63 0.64 Exponential rise in excise tax in Turkey ... 0.62 0.53 0.44 0.26 0.24 0.24 0.24 0.24 0.15 0.16 0.072 Before 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 01/2013 07/2013 Oct. 03 *Excise tax for beer per one degree
Slide 20: Beer Excise Tax Almost 3.5x Of The European Average
Now Beer Excise Tax is Almost 3.5x Of The European Average... TURKEY 0.27 0.27 0.25 0.23 0.22 0.14 EU 0.13 0.13 0.13 0.12 Average 0.09 0.069 0.069 0.073 0.061 0.063 0.063 0.067 0.061 0.057 0.058 0.059 2004 2005 2006 2007 2008 2009 2010 2011 2012 01/2013 07/2013 *per one degree of alcohol (EUR) Sourc
Slide 21: Resilient Volume Performance Despite Significant Price Increases
... But Resilient Volume Performance Despite Significant Price Increases Despite significant price increases to reflect excise tax hikes, we were able to maintain our volumes Shelf price rose further to 3.9TRL as of July 2013... 9.2 8.5 8.5 8.5 8.4 8.6 4 8.2 7.6 3.5 50 cl returnable bottle price 7.1
Slide 22: Strategic Initiatives To Generate Volume Growth
Because Of The Strategic Initiatives Implemented To Generate Volume Growth... Increasing the number of beer selling outlets... Strategic initiatives to increase Developing places not just for availability, visibility and beer consumption but for the perception of beer enjoyment of beer... Increase t
Slide 23: Limited Availability Of Beer In Off-Premise Channel
Limited Availability Of Beer In Off-Premise Channel Number of beer selling outlets per 1,000 people Source: The Company 23
Slide 24: Increasing The Relevance Of Beer
The Third Element: Increasing The Relevance Of Beer Through a portfolio for all occasions... Economy Premium 2% 3% 100% brand awareness for Efes Exports to more than 70 countries # 1 in consumer spending in Food & Mainstream 95% Beverage category – 7.7% as of January- June 2013 (Nielsen) 99.0% penet
Slide 25: Turkish Beer Market – Fundamentals & Dynamics
Turkish Beer Market – Fundamentals & Dynamics Sales Volume by Consumption Channel (2012) DYNAMICS OF THE TURKISH BEER MARKET Key account 15.2% On-Premise Consolidated market - top 2 players represent 23.2% more than 99% of the market lack of sizeable acquisition targets Off-premise consolidated
Slide 26: Unmatched Brand Equity
Unmatched Brand Equity TURKEY Top Brands – % of spending Total Trade % Food & Beverage % 1. Winston (tobacco) 6.9 1. EFES PILSEN 7.7 2. Parliament (tobacco) 5.2 2. Eti 4.1 3. Marlboro (tobacco) 4.6 3. Coca-Cola 3.6 Source: Nielsen YTD June 2013 4. Lark (tobacco) 4.4 4. Yeni Rakı 3.4 5. EFES PILSEN 3
Slide 27: Turkish Beer Market – Vertical Integration
Turkish Beer Market – Vertical Integration TWO MALTERIES 100% self sufficiency ANADOLU EFES Long Standing Relationships Malt + Hops ONE HOPS FACILITY •Patented barley seeds •Malting Barley at partly self sufficient •Fertilizer a pre-determined •Technology & know-how price Brewery & Capacity FARMERS
Slide 28: Turkey Beer Operations' Financial Performance
Turkey Beer Operations’ Financial Performance Net Sales Revenue EBITDA* ’07-’12 ’07-’12 CAGR 7% CAGR 11% 40.3% 41.8% 39.8% 40.1% 37.4% 37.7% 34.3% 30.6% Million TRL Million TRL 1,604.7 494.2 1,182.1 1,390.8 503.0 550.5 1,264.2 519.1 519.9 1,293.4 967.0 389.8 846.1 833.1 318.7 254.9 2007 2008 2009 20
Slide 29: Turkey Beer Operations' FY2013 Outlook
TURKEY BEER OPERATIONS’ FY2013 OUTLOOK We expect Turkish beer market to decline at a rate of mid-single digit, reflecting the expected impact of the changes in the regulatory environment as well as the developments in Turkey starting from late-May and higher prices. Our beer sales in Turkey is e
Slide 30: International Beer Operations
International Beer Operations ANADOLU EFES
Slide 31: Developments In International Operations
Developments In International Operations Volume Development ’07-’12 CAGR 8% 19.8 15.7 14.6 13.3 14.1 13.6 11.2 10.3 9.2 9.2 2007 2008 2009 2010 2011 2012 1H2012 1H2013 1H2012 1H2013 Reported Proforma Consolidated sales volume of EBI reported at 9.2 mhl in 1H2013, down 10.4% y-o-y Breakdown of Sales
Slide 32: Volume Development In Russia
Volume Development In Russia Market Share by Volume – 1H2012 Market Share by Volume – 1H2013 th. inhab) Retail YTD June 2012 Nielsen, National Urban Russia (over 10 th. inhab) Retail YTD June 2013 Nielsen, National Urban Russia (over 10 Others Others Carlsberg 17.7% 19.6% Carlsberg 36.3% EFES Rus 37
Slide 33: The Need For A Strategic Partner In Russia
The Need For A Strategic Partner In Russia... Challenge in Russia to have a critical mass... 33
Slide 34: SABMiller: The Best Possible Partner in Russia
SABMiller: The Best Possible Partner in Russia Logistic & Geographical Synergies Sales Force Synergies Synergies Enlarged Cross brewing geographical reach opportunities in production Advantages due to Complementary Achieve higher existing common Brand Portfolio distributors for both penetrat
Slide 35: Acquisition of SABMiller Beer Operations
Acquisition of SABMiller Beer Operations Total international beer capacity rose from 25.2 mhl to 33.3 mhl following the acquisition of 4 Breweries from SABMiller 35
Slide 36: A More Balanced Contribution of International Operations
A More Balanced Contribution of International Operations In Consolidated Results VOLUME REVENUE EBITDA (BNRI) TOTAL BEER – FY2011 EBI reported figures* 31% Turkey Turkey 37% EBI 46% EBI Turkey 54% 63% 69% TOTAL BEER –FY2012 operating proforma figures** EBI Turkey 47% Turkey 36% 29% EBI Turkey 64% 53
Slide 37: Improved Profitability For International Beer Operations
With An Improved Profitability For Our International Beer Operations $/HL 76.5 66.7 46% 42% 17% 15% NET SALES GROSS PROFIT EBITDA (BNRI) MARGIN MARGIN 2011 reported 2012 proforma 37
Slide 38: A More Balanced Portfolio in Russia
A More Balanced Porfolio in Russia Combined Russian business with a highly attractive, valuable and balanced portfolio of international and local brands across key market segments... PREMIUM UPPER MAINSTR. LOWER MAINSTR. Before acquisition of SAB Russia Current Brand Portfolio 38
Slide 39: Integration In Russia; Our Challenge and Opportunities
Integration In Russia; Our Challenge and Opportunities 1+1 = 2 + $120MILLION* 39 *To be achieved in full in the third year of the deal.
Slide 40: Strongly Positioned in All Markets
Strongly Positioned in All Markets SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Kazakhstan SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Ukraine SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Moldova SUPER PREMIUM PREMIUM MAINSTREAM Georgia 40
Slide 41: Russian Beer Market – Fundamentals & Dynamics
Russian Beer Market – Fundamentals & Dynamics Off-Premise Outlet Split (2012) Packaging Split (2012) Open Markets 2% Keg 3% Hyper/ Supermarkets 17% Can 18% Kiosks 12% Food Stores 45% Superettes PET 47% 18% Glass Bottle Pavillions 33% Source: Nielsen 6% Hops Processing Numbers may not add up to 100 d
Slide 42: Other Operating Countries
Other Operating Countries Market Share by Volume Shymkent Pivo InBev 4.6% 0.8% Other 7.9% #4 brewer Kazakhstan Carlsberg Ukraine 27.9% EBI 58.7% Capacity: 2.3 mhl EBI entered the Ukranian beer market following the acquisition of the SABMiller’s Ukrainian beer Nielsen , YTD June 2013 operations in Ma
Slide 43: International Beer Operations Financial Performance
International Beer Operations Financial Performance Net Sales Revenue EBITDA (BNRI)* ’07-’12 ’07-’12 CAGR 12% CAGR 10% 18.7% 19.8% 21.9% 14.8% 14.7% 16.5% 16.1% 11.7% 14.9% 11.7% million USD million USD 1,505.9 248.3 213.7 1,038.0 976.8 852.5 156.0 170.1 857.3 976.0 153.5 143.0 836.2 773.4 680.7 124
Slide 44: International Beer Operations' FY2013 Outlook
INTERNATIONAL BEER OPERATIONS’ FY2013 OUTLOOK Russian beer market is expected to decline at a rate of mid-single digits in 2013, mainly due to the negative impact of the regulatory changes, pricing environment and deceleration in economic growth. Flattish volumes forecasted for other CIS countri
Slide 45: Soft Drink Operations
Soft Drink Operations ANADOLU EFES
Slide 46: Soft Drinks Business - Operating Geography
Soft Drinks Business - Operating Geography Russia 10 countries 23 production facilities Kazakhstan Kyrgyzstan Azerbaijan Uzbekistan China Turkey Turkmenistan Tajikistan Iran Syria Iraq Jordan Pakistan India Egypt S.Arabia U.A.E. 46
Slide 47: Future Opportunities
2012 PerCap Consumption (lt) Future Opportunities Source: CCI and United Nations Median Age CCI territory total population: over 360 million 47
Slide 48: Country Data
Country Data % of Per capita CCI’s market Population GDP per capita consumption share in CCI’s 2012 population (mn) in in 2012 of sparkling sparkling Volume below 30 2012 (2) ($) (2) bev. (L) in 2012 bev. in 2012 Breakdown years (3) (4) (5) Turkey 75.6(1) 51% 10,412 45 67% 66.8% Pakistan 178.9 64% 1
Slide 49: Geographic and Category Split of Business
Geographic and Category Split of Business Volume split (uc) – International Operations International Volume Split 1H2013 1H13 Kazakhstan 18.0% Kyrgyzstan 2.8% Pakistan Turkey 43.8% Azerbaijan 7.9% Turkmenistan 4.7% Tajikistan 0.5% Syria Iraq Jordan 0.0% 19.5% 2.8% Consolidated Volume Split Consolida
Slide 50: Dynamic Growth in All Markets
Dynamic Growth in All Markets TURKEY SOFT DRINKS VOLUME DEVELOPMENT ’07-’12 CAGR 8% 568.5 546.8 494.4 382.4 420.8 438.9 268.3 282.0 mu/c 2007 2008 2009 2010 2011 2012 1H2012 1H2013 INTERNATIONAL SOFT DRINKS VOLUME DEVELOPMENT ’07-’12 CAGR 24% 282.0 235.0 215.0 mu/c 171.0 169.3 147.6 97.9 113.0 2007
Slide 51: Leading Brands and Market Positions
Leading Brands and Market Positions Source: Nielsen, 2012 51 * Market share numbers are restated due to a change in forecasting universe
Slide 52: Soft Drink Operations' Financial Performance
Soft Drink Operations’ Financial Performance* Net Sales Revenue EBITDA* ’07-’12 ’07-’12 CAGR 16% CAGR 16% 17.1% 16.6% 17.4% 16.7% 17.5% 15.3% 15.8% 14.3% 16.6% 17.5% million TRL million TRL 4,132.4 685.5 436.5 3,408.6 2,491.0 436.5 2,491.0 346.8 2,753.2 2,071.5 375.3 486.9 2,258.1 2,407.5 305.1 329.
Slide 53: Anadolu
ANADOLU
Slide 54: Appendix
Appendix ANADOLU EFES
Slide 55: Consolidated Income Statements
ANADOLU EFES Consolidated Income Statements For the Six-Month Period Ended 30.06.2012 and 30.06.2013 Prepared in accordance with IFRS as per CMB Regulations (million TRL) 2012/6 2013/6 restated reported SALES VOLUME (million hectoliters) 14.8 42.5 SALES 2,240.0 4,563.5 Cost of Sales (-) -1,006.3 -2,
Slide 56: Consolidated Balance Sheets
ANADOLU EFES Consolidated Balance Sheets as of 30.06.2013 and 31.12.2012 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/12 2013/6 2012/12 2013/6 restated reported restated reported Cash & Cash Equivalents 1,394.6 1,093.8 Short-term Borrowings 749.7 1,735.2 Financial Inves
Slide 57: Turkey Beer Operations Highlighted Items
TURKEY BEER OPERATIONS Highlighted Income Statement Items For the Six-Month Period Ended 30.06.2012 and 30.06.2013 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/6 2013/6 restated reported Sales Volume (million hectolitres) 4.5 3.9 SALES 846.1 833.1 GROSS PROFIT FROM OPER
Slide 58: International Beer Operations (EBI)
INTERNATIONAL BEER OPERATIONS (EBI) Highlighted Income Statement Items For the Six-Month Period Ended 30.06.2012 and 30.06.2013 Prepared In Accordance with IFRS (million USD) 2012/6 2013/6 restated reported Volume (million hectoliters) 10,3 9,2 NET SALES 773,4 680,7 GROSS PROFIT 358,5 279,4 PROFIT F
Slide 59: Soft Drink Operations (CCI)
SOFT DRINK OPERATIONS (CCI) Highlighted Income Statement Items For the Six-Month Period Ended 30.06.2012 and 30.06.2013 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/6 2013/6 restated reported Sales Volume(million Unit Case) 352.4 517.0 Sales (net) 1,751.7 2,491.0 Cost o
Slide 60: Turkey AFB Market
Turkey AFB Market AFB Market (exc. milk) RTD AFB Market (exc. milk) 5.5 billion uc 1.5 billion uc Tea Sparkling 44.4% Other Water 2.9% 6.7% Sparkling Ayran Beverages 9.9% 38.7% RTD AFB 28.2% Powder&Concentrat e Hot Coffee Fruit 1.6% 2.4% Juices&Still HOD Drinks 23.4% 10.2% Bottled Water 31.5% Source