Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (February 2014)
45 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, Feb 17, 2014
Slide 1: STRICTLY PRIVATE & CONFIDENTIAL
STRICTLY PRIVATE & CONFIDENTIAL 1
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 16 -Turkey: 11 litres of beer, 45 litres of sparkling beverages per capita 11 -Kazakhstan: 30 litres of beer, 34 litres of sparkling bev
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 COCA-COLA İÇECEK1 TURKEY BEER OPERATIONS 25.6% Public (CCI) INTERNATIONAL BEER OPERATIONS COCA-
Slide 5: 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 Central Asia Supply Chain Services Commer
Slide 6: Where do we operate
Where do we operate Refreshing around 660mn consumers in markets with low per capita consumption... STRICTLY PRIVATE & CONFIDENTIAL 6
Slide 7: Our Group Strategy
Our Group Strategy Maintain our focus on beer and soft drinks brands Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct operating companies to maintain focus, build capability and support investment In our core beer markets, restore ma
Slide 8: Consolidated Financial Performance
Consolidated Financial Performance 52.7 65.8 68.8 82.5 85.6 FY2013 Reported 43.2 44.8 38.9 37.8 International Turkey Volume* 34.6 Beer Beer 21% 9% mhl Soft Drinks 70% 2007 2008 2009 2010 2011 2012 9M2012 9M2013 2012 2013 Reported Proforma Proforma Beer Soft Drinks 9M2013 7,081.7 7,361.1 Revenue* Int
Slide 9: Beer Group
STRICTLY PRIVATE & CONFIDENTIAL 9
Slide 10: 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) 4th largest brewer by sales vol
Slide 11: 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 12: Per Capita Beer Consumption in Operating Markets
Per Capita Beer Consumption in Operating Markets & in Some Selected Countries 11.0% Georgia 0.9 mhl 8.0% China CAGR Growth 2008 - 2013 (%) 544 mhl 5.0% 2.0% Turkey 8.7 mhl Moldova Poland 1.2 mhl 38 mhl Uzbekistan 20 40 60 80 100 120 140 160 -1.0% 2.4 mhl USA 232 mhl Ukraine Germany 25.9 mhl 83 mhl R
Slide 13: Long Term Beer Group Strategy
Long Term Beer Group Strategy - It’s all about the consumer and Brands delivering choice, innovation and brand love - Great distribution and activation at the Execution point of sale - Lean and efficient organisation Efficiency throughout the supply chain and RTM - with our employees, Relationship g
Slide 14: Beer Group's Strategy for 2014 - 2016
Beer Group’s Strategy for 2014 - 2016 Expand our brand and package portfolio in the premium and mainstream segments in all countries Leverage our SABMiller alliance to provide global and regional brand power Reduce the cost base through capacity reduction, procurement savings and opex reductio
Slide 15: Key Enablers For 2014-2016
Key Enablers For 2014-2016 -The best brands -Lean and efficient manufacturing Efes Pilsen Kozel Bomonti Kruzhka Svezhego Efes Malt Beliy Medved Miller Stary Melnik Chisinau -Strong route to market -Market leading capabilities in marketing and sales -Superior customer relationship -Healthy balance sh
Slide 16: Turkey Beer Operations
STRICTLY PRIVATE & CONFIDENTIAL 16
Slide 17: Developments in Turkey Beer Operations
Developments in Turkey Beer Operations Historical Volume Performance* Volumes were under pressure in 2013, due to; 8.5 8.5 8.5 8.6 8.4 7.3 • Higher prices to reflect excise tax mhl increases • Regulatory changes 2008 2009 2010 2011 2012 2013 *Sales volume including exports • Competition Market Share
Slide 18: Historical Volume and Sales Price Development
Historical Volume and Sales Price Development Shelf price rose further to 4.3TRL as of January 2014... 9.2 5 8.5 8.5 8.5 8.4 8.6 8.2 4.3 4.5 7.6 7.1 7.1 7.3 7.2 6.8 4 50 cl returnable bottle price 6.4 6.2 5.9 6.0 3.5 5.7 3.7 5.2 3.2 3 mhl 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
Slide 19: Turkey Beer Operation's Strategy
Turkey Beer Operation’s Strategy - Efes Malt, Bomonti Brands - Premiumization strategy - Ekomini Project Execution - Cooler placements - On-trade outlet development - Minimize opex Efficiency - Cost reduction initiatives - Procurement initiatives - Strong focus on building Relationship people capabi
Slide 20: Focus on Brands
Focus on Brands Through a portfolio for all occasions... Miller Mojo Mix Peroni Mariachi Satsu Mix Marmara Mariachi Duvel Gold Beck’s Black Premium Economy 2% 3% 100% brand awareness for Efes Efes Pilsen Marmara Kırmızı Exports to more than 70 countries Efes Pilsen Fıçı M34 # 1 in consumer spe
Slide 21: Efficiency & Relationship
Efficiency & Relationship EFFICIENCY RELATIONSHIP Minimize costs through procurement Proactive relationships with savings governments Minimize opex Working with best people RTM optimization Win-win relationship with suppliers and business partners Increase cooperation with strategic pa
Slide 22: Turkey Beer Financial Performance
Turkey Beer Financial Performance 2013 OUTLOOK *Sales volume including exports Sales revenues are expected to decline 8.5 8.5 8.5 8.6 8.4 Volume* 6.6 7.3 5.8 slightly contributed by higher sales prices. mhl Price increases are expected to cover the 2008 2009 2010 2011 2012 2013 9M2012 9M2013 neg
Slide 23: International Beer Operations
STRICTLY PRIVATE & CONFIDENTIAL 23
Slide 24: 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) 4th largest brewer by sales volume & 3rd largest by value in Russia, the World’s 4th largest beer market(4) 4th largest brewer
Slide 25: Significant challenges in Russia
Significant challenges in Russia Volume Development of EBI Breakdown of Sales Volume (Reported) – FY2013 20.7 19.8 18.2 18.2 Others 36% Russia 15.7 14.6 64% mhl 13.3 14.1 13.6 2007 2008 2009 2010 2011 2012 2013 2012 2013 Reported Proforma On a proforma basis, EBI’s sales volume in FY2013 declined by
Slide 26: Challenging operating environment in Russia
Challenging operating environment in Russia Market Share by Volume – 9M2013 2013 10 th. inhab) Retail YTD September Nielsen, National Urban Russia (over Other 19.9% Carlsberg EFES RUS 37.4% 13.5% Heineken InBev 14.2% 15.1% *Carlsberg and INBEV breweries shares include Ukrainian brands ** Efes Rus sh
Slide 27: Opportunities in the world's 4th largest beer market
Opportunities in the world’s 4th largest beer market -Kozel leading the premium segment Brands -Relaunches of Zolotoya Bochka, Stariy Melnik, Beliy Medved -New packages launches for Gold Mine -Resumed shipments to key accounts Execution -Increasing distribution in modern trade -Network optimization
Slide 28: Other Operating Countries
Other Operating Countries Market Share by Volume Shymkent Pivo InBev 5.5% 0.8% Other 7.9% #4 brewer Kazakhstan Carlsberg Ukraine 27.8% EBI 58.0% Capacity: 2.9 mhl EBI entered the Ukranian beer market following the acquisition of the SABMiller’s Nielsen , YTD September 2013 Ukrainian beer operations
Slide 29: Strongly Positioned in All Markets
Strongly Positioned in All Markets SUPER PREMIUM PREMIUM MAINSTREAM Kazakhstan Efes Miller V. Kozel Beliy Medved Karagandinskoe Kruzhka Svezhego SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Stary Melnik Zolotoya Bochka Beliy Medved Sarmat Ukraine Miller V. Kozel SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY
Slide 30: International Beer Financial Performance
International Beer Financial Performance 19.8 20.7 18.2 2013 OUTLOOK 18.2 16.8 15.7 14.5 14.6 On an operating proforma basis, mhl Volume 14.1 13.6 • Sales revenues are expected to decline at 2008 2009 2010 2011 2012 2013 9M2012 9M2013 2012 2013 a rate of high-teens due to phased Reported Proforma Pr
Slide 31: Soft Drinks Operations
STRICTLY PRIVATE & CONFIDENTIAL 31
Slide 32: Soft Drinks Business Strategy
Soft Drinks Business Strategy Accelerate revenue and margin Grow the sparkling category growth in international overall and per capita in Turkey operations Improve balance sheet health every year, with commitment to Continue to build and enhance a highly conservative financial our reputation structu
Slide 33: 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 more than 360 million people; Shareholder Structure 60% of our population is below 30 years of age 2004-2012 CAGR: Sales volume: 15% Net Sales
Slide 34: Future Opportunities
Future Opportunities Sparkling Beverage Consumption vs. GDP (2012) Per Cap Consumption (liters) Mexico 150 Argentina USA Germany 100 Spain UK Kuwait Saudi Arabia U.A.E. Bulgaria #4 South Africa Hungary Oman 50 Jordan Poland Iraq Greece Turkey Turkmenistan Italy Kazakhstan Russia Kyrgyzstan Egypt Aze
Slide 35: Geographic and Category Split of Business
Geographic and Category Split of Business Volume split (uc) – International Operations International Volume Split FY2013 2013 Kazakhstan 17.8% Kyrgyzstan Pakistan 2.9% 42.6% Azerbaijan 8.4% Turkmenistan 4.8% Tajikistan 0.5% Syria Iraq Jordan Consolidated Volume Split Consolidated0.0% 20.1% Volume Sp
Slide 36: Strong Brand Positioning and Offering in Our Key Markets
Strong Brand Positioning and Offering in Our Key Markets Turkey Azerbaijan Kazakhstan Pakistan 67%* 59%* 42%* 29%* #1 #1 #1 #2 Sparkling Beverages 25% 13% 18% 2% Juices #1 #2 #1 #8 7% 50% 10% 8% Water #2 #1 #3 #3 Sources: Nielsen Retail Panel, 2012. Notes: (*) Percentage volume share. STRICTLY PRIVA
Slide 37: Soft Drinks Financial Performance
Soft Drinks Financial Performance International Volume 568.5 573.6 484.2 Turkey Volume 546.8 459.6 462.5 494.4 391.7 mu/c 420.8 438.9 367.6 286.7 mu/c 282.0 215.0 171.0 113.0 147.6 2007 2008 2009 2010 2011 2012 2013 9M2012 9M2013 2008 2009 2010 2011 2012 9M2012 9M2013 2012 2013 723.2 Reported Profor
Slide 38: Summary
STRICTLY PRIVATE & CONFIDENTIAL 38
Slide 39: Summary
Summary 2013 was an another year with solid performance for CCI 2013 was another challenging year for beer operations In the short-term, we remain cautious for our operations in Turkey both for beer & soft drinks In beer business, headwinds are slowing us down but we are taking short-term re
Slide 40: Appendix
STRICTLY PRIVATE & CONFIDENTIAL 40
Slide 41: Consolidated Income Statements
ANADOLU EFES Consolidated Income Statements For the Nine-Months Period Ended 30.09.2012 and 30.09.2013 Prepared in accordance with IFRS as per CMB Regulations (million TRL) 2012/9 2013/9 restated reported SALES VOLUME (million hectoliters) 22.6 68.8 SALES 3,394.4 7,361.1 Cost of Sales (-) -1,531.4 -
Slide 42: Consolidated Balance Sheets
ANADOLU EFES Consolidated Balance Sheets as of 30.09.2013 and 31.12.2012 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/12 2013/9 2012/12 2013/9 restated reported restated reported Cash & Cash Equivalents 1,394.6 925.3 Short-term Borrowings 749.7 1,837.6 Financial Investm
Slide 43: Turkey Beer Operations Highlighted Items
TURKEY BEER OPERATIONS Highlighted Income Statement Items For the Nine-Months Period Ended 30.09.2012 and 30.09.2013 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/9 2013/9 restated reported Sales Volume (million hectolitres) 6.6 5.8 SALES 1,227.7 1,231.5 GROSS PROFIT FRO
Slide 44: International Beer Operations (EBI)
INTERNATIONAL BEER OPERATIONS (EBI) Highlighted Income Statement Items For the Nine-Months Period Ended 30.09.2012 and 30.09.2013 Prepared In Accordance with IFRS (million USD) 2012/9 2013/9 restated reported Volume (million hectoliters) 15.9 14.5 NET SALES 1,200.6 1,037.1 GROSS PROFIT 559.3 420.8 P
Slide 45: Soft Drink Operations (CCI)
SOFT DRINK OPERATIONS (CCI) Highlighted Income Statement Items For the Nine Months Period Ended 30.09.2012 and 30.09.2013 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/9 2013/9 restated reported Sales Volume(million Unit Case) 608.1 854.1 Sales (net) 3,031.5 4,183.9 Cost