Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — FY2013 Earnings Presentation
47 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Mar 14, 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 -Turkey: 11 litres of beer, 45 litres of sparkling beverages per capita -Kazakhstan: 30 litres of beer, 34 litres of sparkling beverages
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 STRICTLY PRIVATE & CONFIDENTIAL 5
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 85.6 82.5 FY2013 Reported International Turkey Volume* Beer Beer 44.8 21% 9% 43.2 38.9 mhl 37.8 Soft Drinks 70% *On a combined basis 2008 2009 2010 2011 2012 2013 Reported Proforma Beer Soft Drinks 200-2012 CAGR FY2013 International Turkey Revenue* Beer million TRL
Slide 9: STRICTLY PRIVATE & CONFIDENTIAL
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% Georgia 0.9 mhl 08% CAGR Growth 2008 - 2013 (%) Chi na 544 mhl 05% Turkey 02% Pol a nd 8.7 mhl Moldova 38 mhl 1.2 mhl -01% .. Uzbekistan 20.. 40.. 60.. 80.. 100.. 120.. 140.. 160.. Ukraine USA 232 mhl 2.4 mhl Germa ny
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: STRICTLY PRIVATE & CONFIDENTIAL
STRICTLY PRIVATE & CONFIDENTIAL 16
Slide 17: Developments in Turkey Beer Operations
Developments in Turkey Beer Operations Historical Volume Performance* In FY2013, volumes were under pressure 8.5 8.5 8.5 8.4 8.6 due to: 7.3 mhl • Higher prices to reflect excise tax 2008 2009 2010 2011 2012 2013 increases *Sales volume including exports Market Share Development • Regulatory changes
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 Peroni Mariachi Duvel Marmara Mariachi Gold Beck’s Black Economy Premium 2% 4% 100% brand awareness for Efes Efes Pilsen Marmara Kırmızı Exports to more than 70 countries Efes Pilsen Fıçı Mainstream M34 # 1 in consumer spending in Food
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 Volume* Revenue 8.5 8.5 mhl 1,604.7 8.5 Million TRL 8.6 1,264.2 1,517.5 8.4 1,182.1 1,390.8 1,293.4 7.3 2007 723.2 2008 854.7 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 *Sales volume including exports 2009 916.6 EBITDA 2010 1,019.0 41.8% 39.8% 40.1%
Slide 23: STRICTLY PRIVATE & CONFIDENTIAL
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 (Proforma) – FY2013 20.7 19.8 18.2 18.2 Others mhl 36% Russia 15.7 14.6 64% 14.1 13.6 Reported Proforma 2008 2009 2010 2011 2012 2013 2012 2013 reported proforma Softer volume performance in EBI was led by Russian o
Slide 26: Challenging operating environment in Russia
Challenging operating environment in Russia Market Share by Volume* – FY2013 Other 20.1% Carlsberg 37.1% EFES RUS 13.6% Heineken InBev 14.1% 15.1% *Carlsberg and INBEV breweries shares include Ukrainian brands ** Efes Rus share is calculated as sum of Efes Russia and SABMiller shares Numbers may not
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 5.9% 0.8% Other 7.9% #4 brewer Kazakhstan Ukraine Carlsberg EBI 27.9% 57.5% Capacity: 2.9 mhl EBI entered the Ukranian beer market following the acquisition of the SABMiller’s Nielsen , YTD December 2013 Ukrainian beer operations i
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 Volume Revenue 1,585.1 20.7 19.8 1,505.9 1,300.5 18.2 1,300.5 million USD 18.2 mhl 1,038.0 976.8 15.7 14.6 976.0 14.1 13.6 857.3 2007 723.2 2008 2009 2010 2011 2012 2013 2012 2013 2008 2009 2010 2011 2012 2013 2012 2013 reported proforma reported proforma 200
Slide 31: STRICTLY PRIVATE & CONFIDENTIAL
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 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 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 0.0% Consolidated Volume Split Consolidated 20.1% Volume S
Slide 36: Strong Brand Positioning and Offering in Our Key Markets
Strong Brand Positioning and Offering in Our Key Markets STRICTLY PRIVATE & CONFIDENTIAL 36
Slide 37: Soft Drinks Financial Performance
Soft Drinks Financial Performance International 484.2 573.6 Turkey Volume 568.5 Volume 546.8 494.4 420.8 438.9 mu/c 367.6 mu/c 215.0 171.0 113.0 147.6 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 proforma 2014 OUTLOOK Revenue million TRL 5,186.4 5,186.4 4,448.7 High- single digit vo
Slide 38: STRICTLY PRIVATE & CONFIDENTIAL
STRICTLY PRIVATE & CONFIDENTIAL 38
Slide 39: 2014 Outlook
2014 Outlook Anadolu Efes consolidated; • sales volumes to grow at a rate of mid-single digit • sales revenue growth to outperform the rise in sales volumes • EBITDA (BNRI) growth to outpace the revenue growth, indicating a margin expansion led by improved margins in both operations, especially in b
Slide 40: STRICTLY PRIVATE & CONFIDENTIAL
STRICTLY PRIVATE & CONFIDENTIAL 40
Slide 41: 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 42: STRICTLY PRIVATE & CONFIDENTIAL
STRICTLY PRIVATE & CONFIDENTIAL 42
Slide 43: Anadolu Efes Consolidated Income Statements
ANADOLU EFES Consolidated Income Statements For the Years Ended 31.12.2013 and 31.12.2012 Prepared in accordance with IFRS as per CMB Regulations (million TRL) 2012/12 2013/12 restated reported SALES VOLUME (million hectoliters) 28.4 85.6 SALES 4,319.7 9,195.8 Cost of Sales (-) -1,979.0 -5,200.1 GRO
Slide 44: Anadolu Efes Consolidated Balance Sheets
ANADOLU EFES Consolidated Balance Sheets as of 31.12.2013 and 31.12.2012 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/12 2013/12 2012/12 2013/12 restated reported restated reported Cash & Cash Equivalents 1,394.6 1,746.4 Short-term Borrowings 749.7 1,740.4 Financial Inv
Slide 45: Turkey Beer Operations
TURKEY BEER OPERATIONS Highlighted Income Statement Items For the Years Ended 31.12.2013 and 31.12.2013 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/12 2013/12 restated reported Sales Volume (million hectolitres) 8.6 7.3 SALES 1,604.7 1,517.5 GROSS PROFIT FROM OPERATION
Slide 46: International Beer Operations (EBI)
INTERNATIONAL BEER OPERATIONS (EBI) Highlighted Income Statement Items For the Years Ended 31.12.2013 and 31.12.2013 Prepared In Accordance with IFRS (million USD) 2012/12 2013/12 restated reported Volume (million hectoliters) 19.8 18.2 NET SALES 1,505.9 1,300.5 GROSS PROFIT 686.9 516.3 PROFIT FROM
Slide 47: Soft Drink Operations (CCI)
SOFT DRINK OPERATIONS (CCI) Highlighted Income Statement Items For the Years Ended 31.12.2013 and 31.12.2012 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/12 2013/12 restated reported Sales Volume(million Unit Case) 766.3 1,057.7 Sales (net) 3,819.3 5,186.4 Cost of Sales