40 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Nov 7, 2014
Slide 1: Investor Presentation
INVESTOR PRESENTATION Strictly Confidential 1 November 7, 2014
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: A Total Beverage Company Refreshing 660mn Consumers
A Total Beverage Company Refreshing 660mn Consumers With A Strong History of Growth... • A world class brand portfolio • In markets with low per capita consumption -Turkey: 11 litres of beer, 45 litres of sparkling beverages -Kazakhstan: 30 litres of beer, 34 litres of sparkling beverages -Pakistan:
Slide 4: Operating Geography and Ownership Structure
Operating Geography Ownership Structure Refreshing around 660mn consumers in ANADOLU GROUP markets with low per capita consumption... SABMiller Yazıcılar Holding Özilhan Sınai Anadolu Endüstri Harmony Ltd. 24.0% 23.6% Yatırım 13.5% Holding 6.0% Public 33.0% ANADOLU EFES 50.3% BEER OPERATIONS SOFT DR
Slide 5: Our Group Strategy
Our Group Strategy Maintain focus on beer and soft drinks brands Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct companies to maintain focus, build capability & support investment In our core beer markets, restore margin & share in
Slide 6: Consolidated Financial Performance – 9M2014
Consolidated Financial Performance – 9M2014 Sales Volume Breakdown* EBITDA (BNRI) Breakdown* Volume* 9M2014 Revenue* 9M2014 Sales Revenue Breakdown* EBITDA*(BNRI)** 9M2014 Turkey Turkey Beer Turkey Beer Beer International 15% 26% 8% Beer 19% International Beer Soft Drinks International Soft Drinks 2
Slide 7: Beer Operations
Beer Operations Strictly Confidential 7
Slide 8: The Leading Brewer in CIS and Turkey
The Leading Brewer in CIS and Turkey Europe’s 5th largest and the World’s 10th largest brewer in terms of sales volume* with No.1 position in most of the markets in which we operate Largest brewer by sales volume in Turkey(1), Kazakhstan(1), Moldova(2), Georgia(3) 3rd largest brewer by sales vol
Slide 9: 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 10: Total Beer Market Size & Per Capita Beer Consumption
Total Beer Market Size & Per Capita Beer Consumption in Operating Markets & in Some Selected Countries Per Capita CAGR Growth 2009-2013 (%) 12% GEORGIA MOLDOVA 7% CHINA BULGARIA POLAND 2% KAZAKHSTAN ROMANIA UKRAINE 0 20 40 60 80 100 120 140 160 GREECE CZECH REPUBLIC USA GERMANY -3% TURKEY SERBIA RUS
Slide 11: Long Term Beer Group Strategy
Long Term Beer Group Strategy - It’s all about the consumer and delivering Brands choice, innovation and brand love - Great distribution and activation at the point of sale Execution - Lean and efficient organisation throughout the supply Efficiency chain and RTM - with our employees, governments, s
Slide 12: Beer Group's Strategy for 2014 - 2016
Beer Group’s Strategy for 2014 - 2016 Expand brand & package portfolio in premium and mainstream segments in all countries Leverage our SABMiller alliance to provide global & regional brand power Reduce cost base through capacity reduction, procurement savings & opex reduction in Russia & Turk
Slide 13: Key Enablers For 2014-2016
Key Enablers For 2014-2016 - Best brands Efes Pilsen Bomonti Miller Kozel Kruzhka Svezhego Beliy Medved Samuel Adams 387 Efes Malt Chisinau Stary Melnik - Strong RTM - Lean & efficient manufacturing - Market leading capabilities in marketing & sales - Superior customer relationship 9M2014 Net Debt /
Slide 14: Turkey Beer Operations
Turkey Beer Operations Strictly Confidential 14
Slide 15: Developments in Turkey Beer Operations
Developments in Turkey Beer Operations Historical Volume Performance* 8.5 8.5 8.5 • Domestic sales volume grew for the first time 8.4 8.6 mhl 7.3 since 2Q2012 and improved slightly by 0.5% to mhl 8.5 7.3 3.9 3.5 5.8 5.5 1.8mhl in 3Q2014 vs 3Q2013. 20082009 2009 2010 2013 2011 2012 2013 9M2013 1H2013
Slide 16: Turkey Beer Operation's Strategy
Turkey Beer Operation’s Strategy • Focus on Brands in line with long-term strategy Brands • New Brands and SKU launches (Launch of ‘’Kozel ’’, 25 cl Can of ‘’Bomonti’’, 23,7 cl Can of ‘’Xtra Shot’’, non-returnable bottle and 33 cl Can of ‘’Miller’’ and new SKUs of ‘’Special Edition:10’’) • Creative
Slide 17: Focus on Brands
Focus on Brands Through a portfolio for all occasions... Miller Beck’s Duvel Samuel Marmara Gold Adams Mariachi Peroni Grolsch Efes Pilsen Economy 2% Premium 4% 100% brand awareness for Efes Marmara Kırmızı Exports to more than 70 countries Efes Pilsen M34 Özel Seri:10 # 1 in consumer spending
Slide 18: Efficiency & Relationship
Efficiency & Relationship EFFICIENCY RELATIONSHIP Minimize costs through procurement Proactive relationships with governments savings Working with best people Minimize opex Win-win relationship with suppliers & RTM optimization business partners Increase cooperation with strategic part
Slide 19: Turkey Beer Financial Performance
Turkey Beer Financial Performance Volume* Revenue 8.5 8.5 8.5 8.6 8.4 mhl million TRL 7.3 mhl 8.5 1,517.5 7.3 3.9 3.5 1,264.2 1,231.5 1,239.7 5.8 5.5 20082009 2009 2010 2013 2011 2012 2013 9M2013 1H2013 1H2014 9M2014 2009 2013 9M2013 9M2014 *Sales volume including exports EBITDA 39.8% 33.5% 32.2% 27
Slide 20: International Beer Operations
International Beer Operations Strictly Confidential 20
Slide 21: International Beer Operations
International Beer Operations Strong presence in the CIS region with operations in 5 countries Largest brewer by sales volume in Kazakhstan(1), Moldova(2), Georgia(3) 3rd largest brewer by sales volume & 2nd largest by value in Russia(1), the World’s 4th largest beer market(4) 4th largest br
Slide 22: Better Than Expected Sales Performance in International Operations
Better Than Expected Sales Performance in International Operations Volume Development of EBI Breakdown of Sales Volume – 9M2014 18.2 mhl Others 14.5 14.1 37% 13.6 Russia 63% 2009 2013 9M2013 9M2014 • Weaker performance of EBI in 3Q2014 y-o-y mainly due to softer volumes in Russia and Ukraine. • Desp
Slide 23: Market Share Development in Russia
Market Share Development in Russia Market Share by Volume* – Russia Other 22.4% Carlsberg 36.3% Heineken 12.9% EFES RUS InBev 14.1% 14.2% Shares of Carlsberg and INBEV include Ukrainian brands Numbers may not add up to 100% due to rounding • Beer market sales volumes in Russia* declined by high-sing
Slide 24: Opportunities in the world's 4th largest beer market
Opportunities in the world’s 4th largest beer market • Focus on Brands; Premiumization and further strenghtening main brands Brands • Pioneering innovation in the region; new launches & redesigns (launch of Redd’s Mademoiselle and new SKUs in Russia as well as new SKU launches in international opera
Slide 25: Other Operating Countries
Other Operating Countries Market Share by Volume Shymkent Pivo InBev #4 brewer Kazakhstan 7.5% 0.6% Ukraine Other 7.9% #1 brewer Capacity: 2.9 mhl Carlsberg 25.8% EBI 58.2% Capacity: 2.6 mhl Growing operation through brand focus Nielsen , YTD September 2014 Georgia Moldova #1 brewer #1 brewer Capaci
Slide 26: Strongly Positioned in All Markets
Strongly Positioned in All Markets SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Miller Efes Bavaria Beliy Medved Kazakhstan Grolsch V. Kozel Zwei Meister Karagandinskoe Lubitelskoe Pilsner Urquell Amsterdam Navigator Kruzhka Svezhego Efes Radler Zhigulevskoe MEGA PREMIUM SUPER PREMIUM PREMIUM MAINSTREAM
Slide 27: International Beer Financial Performance
International Beer Financial Performance Volume Revenue 1,300.5 million USD 18.2 mhl 14.1 1,037.1 13.6 14.5 857.3 944.9 2009 2013 9M2013 9M2014 2009 2013 9M2013 9M2014 EBITDA* (BNRI) 19.8% 13.7% 12.3% 10.8% million USD 170.1 margin 140.1 128.0 129.4 2009 2013 9M2013 9M2014 Strictly Confidential 27
Slide 28: Agenda
Agenda Strictly Confidential 28
Slide 29: Soft Drinks Business Strategic Priorities
Soft Drinks Business Strategic Priorities Strictly Confidential 29 29
Slide 30: CCI at a glance
CCI at a glance Operating in one of the world’s most dynamic and exciting markets A gateway to Turkey, Pakistan, Central Asia and The Middle East Serving close to 370 million people; Shareholder Structure 60% of our population is below 30 years of age 2004-2013 CAGR: Sales volume: 16% Net Sales:
Slide 31: Future Opportunities
Future Opportunities Strictly Confidential 31 31
Slide 32: Geographic and Category Split of Business (9M2014)
Geographic and Category Split of Business (9M2014) Volume split (uc) - Consolidated Volume split (uc) – Consolidated Strictly Confidential 32 32
Slide 33: Strong Brand Positioning and Offering in Our Key Markets
Strong Brand Positioning and Offering in Our Key Markets Strictly Confidential 33 33
Slide 34: Soft Drinks Financial Performance
Soft Drinks Financial Performance International Volume Volume Turkey 573.6 484.2 452.6 438.9 480.0 391.7 mu/c 462.5 mu/c 147.6 2009 2013 9M2013 9M2014 2009 2013 9M2013 9M2014 Revenue 2007 723.2 2008 million TRL 854.7 5,186.4 4,902.5 4,183.9 2014 OUTLOOK 2009 916.6 2,407.5 2010 1,019.0 2009 2013 9M20
Slide 35: FY2014 Outlook
FY2014 OUTLOOK Strictly Confidential 35
Slide 36: 2014 Outlook
2014 Outlook Our year-end expectations for our beer operations still remain within our initial guidance and we reaffirm our full year outlook for 2014 with the exception of the following; We now expect the Turkish beer market to be flattish in 2014 • Own volumes are expected to be down by low-to-m
Slide 37: Appendix
APPENDIX Strictly Confidential 37
Slide 38: Operating Model
Operating Model Beverage Group President and Anadolu Efes CEO Damian Gammell Coca-Cola İçecek A.Ş. CEO Burak Başarır Deputy CEO of Beverage Group Efes Turkey Efes Russia Eastern Europe and CFO Hüseyin Akın MD MD CIS Group MD Turkey GM Chief Financial Officer Efes Kazakhstan MD Central Asia Supply Ch
Slide 39: Historical Volume and Sales Price Development
Historical Volume and Sales Price Development Shelf price rose further to 4.6TRL 9.2 as 5of July 8.5 8.5 8.5 8.4 8.6 2014... 8.2 4.3 4.5 7.6 7.1 7.1 7.3 50 cl returnable bottle price 7.2 6.8 4 6.4 6.2 5.9 6.0 3.5 5.7 3.7 mhl 5.2 3.2 3 4.2 2.8 2.5 3.2 2 2.1 2.0 1.9 2.2 1.7 1.8 1.5 1.4 1.2 1.3 1 0.4 0
Slide 40: Strictly Confidential
Strictly Confidential 40