21 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Nov 6, 2024
Slide 1: Anadolu Efes 9M2024 Conference Call Presentation
ANADOLU EFES 9M2024 CONFERENCE CALL PRESENTATION 6 NOVEMBER 2024
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: Important Disclaimer Regarding TAS29
Important Disclaimer Regarding TAS29 As stipulated by the decree of the Capital Markets Board, the financial statements for the 9M2024 have been presented in accordance with TAS29 (Turkish Accounting Standard 29: Financial Reporting in Hyperinflationary Economies), and retrospective adjustments have
Slide 4: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT ONUR ALTÜRK CEO & Beer Group President 4
Slide 5: Quarter Mixed with Challenges and Successes
Quarter Mixed with Challenges and Successes… 1 6 consecutive quarters of growth in beer volumes 2 Headwinds in soft drink volume performance 3 Maintained solid gross profitability 4 Dilution in EBITDA margin with rising OPEX Consolidated Net Debt to EBITDA(BNRI) of 0.6x* 5 with net cash position in
Slide 6: Steady Increase in Beer Group Volumes
Steady Increase in Beer Group Volumes… • Consolidated beer volume up by 5.7% in 3Q2024 ➢ Solid performance in Russia, Georgia and Moldova • Turkiye beer volume down 1.4% • International beer volume up 7.5% ➢ Russian volume up high-single digit ➢ CIS countries’ volume was flat on total 3Q2024 Volume
Slide 7: Russia
Russia • Continued growth trend in Russian beer industry ➢ Mid-single digit growth in 3Q* • Our volumes outperformed the industry in 3Q2024 ➢ Own growth of high-single digit*; • Intensified marketing efforts by competitors • Growth in all segments except value segment • Market share gains YTD in bot
Slide 8: CIS and Türkiye
CIS • Total CIS volume stayed flat in 3Q2024 ➢ Moldova and Georgia achieved double digit growth; ✓ Supported by brand activations related to Euro 2024 and the 2024 Olympics ➢ Softer performance in Kazakhstan impacted by weak industry dynamics Türkiye • Türkiye volume down by 1.4% in 3Q2024 • Volume
Slide 9: Soft Drinks
Soft Drinks • Consolidated volume down 9.2% in 3Q2024; • Türkiye volume down 12.2% ➢ Persistent inflationary environment & continued geopolitical issues ➢ Lack of minimum wage adjustments • International volume down 7.1% ➢ Iraq & Azerbaijan continued strong momentum ➢ Pakistan down 22.9%; suffering
Slide 10: Strong Top Line Performance in 9M2024
Strong Top Line Performance in 9M2024… Anadolu Efes Beer Group 3Q 9M 3Q 9M REVENUE • Strong volume growth in beer group TL62.2 mn TL179.5 mn TL25.1 mn TL69.9 mn NET (+0.3%) (+27.4%) (+9.6%) • Effective pricing (+2.5%) • Favorable mix BNRI % 16.2% EBITDA 21.1% 18.6% 21.0% • Increase OPEX per net reve
Slide 11: Financial Overview
FINANCIAL OVERVIEW GÖKÇE YANAŞMAYAN Chief Financial Officer
Slide 12: Financials
Financials Anadolu Efes Beer Group mTL mTL 3Q2024 Change 9M2024 Change 3Q2024 Change 9M2024 Change Sales Revenue 62,195 2.5% 179,536 0.3% Sales Revenue 25,063 27.4% 69,862 9.6% Gross Profit 25,669 5.4% 71,072 5.2% Gross Profit 12,240 20.9% 31,908 8.2% EBITDA (BNRI) 13,127 -4.4% 33,339 -5.6% EBITDA (
Slide 13: Anadolu Efes EBITDA (BNRI) & FCF Generation
Anadolu Efes EBITDA (BNRI) & FCF Generation Free Cash Flow Bridge mTL EBITDA (BNRI) Bridge mTL -46% 9,994 -4% -604 13,730 -69 1,512 -1,876 13,127 -1,642 -170 -1,031 -1,346 5,374 3Q2023 Net COGS Selling, Other 3Q2024 3Q2023 EBITDA Changes CAPEX, net Financial 3Q2024 Revenue Marketing and in WC Inc/Ex
Slide 14: Beer Group EBITDA (BNRI) & FCF Generation
Beer Group EBITDA (BNRI) & FCF Generation EBITDA (BNRI) Bridge mTL Free Cash Flow Bridge mTL +102% +1% 411 -992 4,320 -3,242 5,388 2,695 -1,352 5,196 -723 5,267 2,135 71 3Q2023 Net COGS Selling, Other 3Q2024 3Q2023 EBITDA Changes CAPEX, net Financial 3Q2024 Revenue Marketing and in WC Inc/Exp G&A ex
Slide 15: Impact of TAS29 – Anadolu Efes
Impact of TAS29 – Anadolu Efes +36% +2% +55% 0% NET REVENUE 67.842 179.027 179.536 60.683 62.195 173.921 49.790 -5.647 +5.615 112.359 3Q2023 3Q2024 3Q2023 3Q2024 9M2023 9M2024 9M2023 9M2024 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 +20% -4% +43% -6% EBITDA 14.894 13.730 13.
Slide 16: Impact of TAS29 – Beer Group
Impact of TAS29 – Beer Group NET REVENUE +57% +27% +67% +10% 27.825 25.063 68.932 63.767 69.862 19.675 -2.763 +930 17.739 41.376 3Q2023 3Q2024 3Q2023 3Q2024 9M2023 9M2024 9M2023 9M2024 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 EBITDA +29% +1% +40% -13% 6.078 5.267 13.189 12
Slide 17: Cash & Debt Management
Cash & Debt Management Anadolu Efes Gross Debt Cash USD 2.2 bn USD 1.6 bn Average maturity 59% 46% 2.9 yrs held in Hard Currency held in Hard Currency Net Debt/EBITDA 11% 0.6x held in Eurozone Beer Group Gross Debt Cash USD 0.8 bn USD 1.0 bn Average maturity 64% 50% 2.6 yrs held in Hard Currency hel
Slide 18: Risk Management
Risk Management Beer Group Beer Group Hedges for 2024: COGS Split for 2023: 8% Commodity : 19% 16% Aluminum: 100% for TR & CIS @$2.362 6% 17% 16% *For 2025: 38% for TR & CIS @$2,410 20% FX Exposure : Barley-Malt & Auxiliary Overhead (Labour Cost) Russia: 100% Hedged Glass Bottle Amortization & Other
Slide 19: FY2024 Revised Expectations
FY2024 Revised Expectations ANADOLU EFES BEER GROUP SOFT DRINKS GROUP VOLUME Flat High-single digit growth Low-to-mid single digit decline Previously: Low-single digit growth Previously: Mid-single digit growth Previously: Flat to low-single digit growth SALES REVENUE Mid-to-high twenties growth Mid
Slide 20: Q&A Session
O&A SESSION ANADOLU
Slide 21: FX Rates
FX Rates 9M2023 9M2024 Δ% AVG 22.19 32.23 45.3% USD/TL PE 27.38 34.12 24.6% AVG 24.05 35.05 45.7% EUR/TL PE 29.03 38.17 31.5% AVG 3.73 2.80 -24.9% TL/RUB PE 3.56 2.72 -23.6% AVG 20.41 14.23 -30.3% TL/KZT PE 17.33 14.05 -19.0% AVG 1.65 1.23 -25.2% TL/UAH PE 1.34 1.21 -9.7% AVG 0.82 0.55 -33.2% TL/MDL