Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — FY2022 Earnings Presentation
33 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Apr 20, 2023
Slide 1: Full Year 2022 Investor Presentation
FULL YEAR 2022 INVESTOR PRESENTATION
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 Overview
ANADOLU EFES OVERVIEW
Slide 4: Anadolu Efes At A Glance
Anadolu Efes At A Glance Serving TOTAL VOLUMES REVENUE 750 mn 123.5 mhl TL 90.5 bn Population EBITDA (BNRI) FREE CASH FLOW TL 17.4 bn 70+ TL 6.1 bn Export Countries Europe’s5*th BEER OPERATIONS SOFT DRINK OPERATIONS World’s 9*th 6 countries 11 countries Largest Brewer 21 Breweries, 30 Bottling plant
Slide 5: Ownership Structure & Subsidiaries
Ownership Structure & Subsidiaries 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS 24% 50% 43% Russia Türkiye Azerbaijan Türkiye 33% Kazakhstan Kyrgyzstan Free Float Kazakhstan Jordan Pakistan Moldova Iraq Uzbekistan Georgia Syria Turkmenistan 20.1% 50% Ukraine 50.3% Tajikistan 28.1% Free Float 1.5% 5
Slide 6: Our Strategy
OUR STRATEGY 6
Slide 7: Strategic Core Priorities
Strategic Core Priorities WINNING PORTFOLIO Consumer First ACCELERATORS: Resilient mainstream core brands Smart innovation and NPDs to FINANCIAL DISCIPLINE accelerate growth in premium, non- Profitable revenue growth alcohol & beyond beer Drive value out of effectively managing Spirits a
Slide 8: Vision, Mission & Values
Vision, Mission & Values Russia & Ukraine OUR VALUES: PASSIONATE OUR VISION: Be the largest brewer from Adriatic to China AGILE by developing and owning social life and beer culture. COLLABORATIVE OUR MISSION: We brew joy passionately and responsibly. ACCOUNTABLE FAIR 8
Slide 9: Investment Theme
Investment Theme Diversified business model Strategic Partnerships with 1 including beer and soft 5 World’s leading FMCG drinks companies; AB InBev & TCCC Strong market positions Excellent brand portfolio with 2 6 some of the world’s best known across all operations brands and strong regional brands
Slide 10: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT
Slide 11: Strong Positions Across the Board
Strong Positions Across the Board RUSSIA TURKEY 11 Breweries 3 Breweries World’s 6th largest beer market 12 liters per capita 56 liters per capita #1 Position #1 Position 52% Market share 29% Market share 17% of Beer Volumes 68% of Beer Volumes KAZAKHSTAN GEORGIA 2 Breweries 1 Brewery Beer market si
Slide 12: Strong CAGR Growth Achieved in All Metrics
Strong CAGR Growth Achieved in All Metrics… Volume Revenue EBITDA* FCF Growth Growth Growth Growth 4% 44% 48% 36% Growth stands for 2017-2022 CAGR Growth on AEFES Consolidated basis *BNRI 12
Slide 13: With Solid FY2022 Results
With Solid FY2022 Results… Diversified borrowing portfolio Sustained or strengthened Prudent OPEX and CAPEX by tapping into domestic leadership spending during the year bond market Robust NR/ hl In FY2022, highest EBITDA Net Debt / EBITDA of 0.7x performance with (BNRI) margin achieved of the proact
Slide 14: Consolidated Volume Growth Both On Reported And Organic Basis
Consolidated Volume Growth Both On Reported And Organic Basis… FY FY Volume -10% +15% Consolidated Flat excl. +7% organic Ukraine Volume 4Q FY -2% +6% reported reported -4% +1% organic organic -1% +5% excl Ukraine excl Ukraine 14
Slide 15: Resilient Beer Volumes Despite Headwinds
With Resilient Beer Volumes Despite Headwinds Since Beginning Of The Year • Consolidated beer volume down by 10% in FY • Excluding Ukraine; flat performance • Türkiye beer showed exceptional performance • Volume up 16% • Excl. Ukraine, International beer volume down 2.7% • CIS countries’ volume up b
Slide 16: Russia
Russia • Russian beer market had flat performance in FY2022*; • With growth in 1H and decline in 2H • Our volumes down by low single digit in FY2022; • Good start to the year despite higher pricing • Softening through the end of year • Industry decline in 4Q & stiff competitive environment • Market
Slide 17: Kazakhstan and Moldova
Kazakhstan • Market remained flat* in FY2022 • Our volumes grew by low-to-mid single digit in FY2022 • Market share of 46%* • Efes Pilsener brand strengthened with Efes 0.0 launch • Kruzhka Svezhego; highest share of the market Moldova • Market was down in FY2022 • Our volumes were ahead of the mark
Slide 18: Georgia and Türkiye
Georgia • Market recorded mid-single digit growth* in FY2022 with; • Our volumes grew by mid-to-high teens; highest growth achieved in the last 10 years • Both beer and soft drink sales achieved double digits growth • Solid growth recorded in • Premium brands by Efes and Lowenbrau • Mainstream brand
Slide 19: Soft Drinks
Soft Drinks • Volume growth of 15% in FY2022; driven by international • Türkiye volume up 3% • Sparkling category flattish & Still category up 14% • Energy drinks registered 60% growth • International volume up 23% (10% organically*) • Pakistan up 13%; with growing NARTD market, successful regional
Slide 20: Financial Overview
FINANCIAL OVERVIEW
Slide 21: Solid margin improvement driven by international beer
Solid margin improvement driven by international beer… Anadolu Efes Beer Group FY FY • Price adjustments in place ahead of COGS pressure REVENUE +130.4% +113.0% NET • Proactive RGM initiatives CCR*:+57.3% CCR*:+29.2% • Favorable currency translation • Significant margin improvement in international
Slide 22: Financials
Financials Anadolu Efes Beer Group mTL mTL 4Q2022 Change FY2022 Change 4Q2022 Change FY2022 Change Sales Revenue 22,432 +104.8% 90,504 +130.4% Sales Revenue 9,675 +79.6% 36,976 +113.0% Gross Profit 7,899 +102.4% 32,992 +133.3% Gross Profit 3,914 +98.9% 15,610 +143.0% EBITDA (BNRI) 3,493 +85.5% 17,41
Slide 23: Beer Group EBITDA and Free Cash Flow Generation
EBITDA (BNRI) & Free Cash Flow Generation EBITDA (BNRI) Bridge Free Cash Flow Bridge mTL mTL +99% -2,278 +16%* +7%* 1,945 +29%* 235 970 849 837 480 3,024 975 240 Beer Group 240 100 124 2,038 4Q2021 4Q2022 -2,038 4Q2021 4Q2022 +211% +1,961 +29%* +17%* 7,318 1,877 1,720 +27%* 3,040 229 5,072 1,430 4,9
Slide 24: Cash & Debt Management
Cash & Debt Management Anadolu Efes Gross Debt Cash USD 2.1 bn USD 1.3 bn Average maturity 74% 54% 3.5 yrs held in Hard Currency held in Hard Currency Net Debt/EBITDA 44% 0.7x held in Eurozone Beer Group Gross Debt BeerCash Group USD 0.9 bn USD 0.5 bn Average maturity 59% 41% 3.4 yrs held in Hard Cu
Slide 25: Risk Management
Risk Management Beer Group Beer Group Hedges for 2023: COGS Split for 2022: 9% 17% Commodity : 18% 16% Aluminum: 80% for TR & CIS 5% Barley: 70% for TR 17% 18% FX Exposure : Barley-Malt & Auxiliary Overhead (Labour Cost) Glass Bottle Amortization & Other Overhead Russia: 100% Hedged Can Import produ
Slide 26: Financial Priorities
Financial Priorities Cash Debt Risk Expense Management Management Management Management Ensure liquidity for Maintain long term Manage FX and Zero Based Budgeting operations and accelerate sustainable leverage commodity exposure dividend streams target of 1.0X - 2.0X Cautious and Smart Use Working C
Slide 27: Capital Allocation Priorities & 2023 Expectations
CAPITAL ALLOCATION PRIORITIES & 2023 EXPECTATIONS
Slide 28: Capital Allocation Priorities
Capital Allocation Priorities Brands, Innovation, Product Diversification, Invest in Market Development, Digitalization and Production Capacity Maintain Healthy balance sheet by keeping Net Debt / EBITDA between 1.0x – 2.0x Maximize Shareholder value through dividends with high yield Penetrate & Int
Slide 29: Sustainable Shareholder Return
Sustainable Shareholder Return Sustainable Free Cash Flow Generation Leading to High Dividend Yields* Anadolu Efes 6,129 7.7% 8.3% 6.3% 3.1% TL 2.13 TL 1.93 TL 1.85 CAGR TL 1.77 4,263 mTL 37% 3,012 2,335 2.0% 1.3% 1.4% 1.8% 2.4% 1,315 1,054 TL 0.46 TL 0.51 1,030 TL 0.42 501 638 TL 0.25 TL 0.25 2014
Slide 30: FY2023 Expectations
FY2023 Expectations ANADOLU EFES BEER GROUP SOFT DRINKS GROUP VOLUME Low-to-mid-single digit growth Low-single digit decline Mid to high-single digit growth SALES REVENUE Low-thirties growth High-teens growth High forties to low fifties growth FX-Neutral basis EBITDA Margin Decline around 100-200 bp
Slide 31: Sustainability
SUSTAINABILITY
Slide 32: Road to 2030
Road to 2030 Targeting Zero Increasing Getting Stronger our support through for the environment for social impact Diversity & Inclusion Become carbon neutral in all our Our Focus Areas: Increase the representations of operations by 2030 women in our organization from 30% to 51% by 2030 Culture & art
Slide 33: FX Rates
FX Rates FY2021 FY2022 Δ% AVG 8.87 16.57 86.7% USD/TL PE 13.33 18.70 40.3% AVG 10.46 17.38 66.2% EUR/TL PE 15.09 19.93 32.1% AVG 8.30 4.14 -50.2% TL/RUB PE 5.57 3.76 -32.5% AVG 48.02 27.82 -42.1% TL/KZT PE 32.39 24.74 -23.6% AVG 3.08 1.95 -36.5% TL/UAH PE 2.05 1.96 -4.4% AVG 1.99 1.14 -42.7% TL/MDL