East African Breweries Plc · NSEKE:EABL
East African Breweries — H1 2012 Earnings Presentation
24 slides from East African Breweries's earnings presentation, Feb 17, 2012
Slide 1: EABL F'12 Half Year Results Investor Briefing
DIAGEO EABL F’12 Half Year Results Investor Briefing Seni Adetu, Group Managing Director Stanley Njoroge, Group Financial Controller 17th February 2012
Slide 2: Welcome to today's F'12 Half Year Results Investor Briefing
DIAGEO Welcome to today’s F’12 Half Year Results Investor Briefing • Highlights Seni Adetu • Financial Performance Stanley Njoroge • Outlook and Summary Seni Adetu 2
Slide 3: EABL is a company with a clear vision
DIAGEO EABL is a company with a clear vision Vision Statement EABL is the most celebrated business in every market in Eastern Africa • Market-leading brands across all price points across Total Beverage Alcohol • Focused on delivering sustainable top and bottom line performance • Building strong rou
Slide 4: We have a broad portfolio with strong brands at all price points
DIAGEO We have a broad portfolio with strong brands at all price points Price Lower Higher points
Slide 5: F'12 Half Year Review
DIAGEO F’12 Half Year Review Seni Adetu Group Managing Director & CEO
Slide 6: We have delivered strong performance in the face of macro challenges
DIAGEO We have delivered strong performance in the face of macro challenges • Turbulent macro-economic conditions across all our markets • Consumer confidence and disposable income have been hit • Short-term market events impacted our sales • The inconsistent application of new regulations continues
Slide 7: We have delivered strong volume growth on our brands
DIAGEO We have delivered strong volume growth on our brands +21 % +4% +51% +48% +164 % +17% +55% +36% 7 SIX MONTHS ENDING 31 DEC 2011 VS PY
Slide 8: We have delivered strong growth across our P&L
DIAGEO We have delivered strong growth across our P&L First half F12 vs First half F11 Volumes +18% Net Sales grew NSV +36% ahead of volume COGS +45% Increased investment in A&P A&P +55% Cost management Operating Profit +20% Net Profit +38% 8 SIX MONTHS ENDING 31 DEC 2011 VS PY
Slide 9: We have delivered geographic and product mix diversification
DIAGEO We have delivered geographic and product mix diversification FY F09 H1 F12 0% 7% 4% 13% 20% Kenya NSV by Uganda Geography 19% Tanzania 64% EABLI 73% FY F09 H1 F12 2% 4% 11% 15% NSV by Beers Category Spirits Others 87% 81% SIX MONTHS ENDING 31 DEC 2011 VS FULL-YEAR REPORTED FIGURES TO 30 JUNE
Slide 10: Some highlights of our first half performance
DIAGEO Some highlights of our first half performance Renovation Uganda Innovation Key brand growth 10
Slide 11: Our Brand Marketing across the region continues to deliver cut-through
DIAGEO Our Brand Marketing across the region continues to deliver cut-through 11
Slide 12: We are pleased with the ongoing integration of SBL
DIAGEO We are pleased with the ongoing integration of SBL • Completed the unwinding of our relationship with SAB Miller • Successfully disposed by public offer of EABL’s 20% shareholding in TBL • Accelerated integration of SBL with new appointments • Commissioned Moshi Brewery • Top line performance
Slide 13: We continue to invest in our people
DIAGEO We continue to invest in our people • Capability – Attracting & retaining the best talent in the market • Employee engagement – EABL is the best place to be • Succession planning – Building a robust talent pipeline 13
Slide 14: As well as our communities
DIAGEO As well as our communities Six water facilities launched in Kampala 14
Slide 15: F'12 Half Year Financial Update
DIAGEO F’12 Half Year Financial Update Stanley Njoroge Group Financial Controller
Slide 16: All four markets delivered growth
DIAGEO All four markets delivered growth Kenya Uganda 16% 14% 275% 300% 14% 12% 250% 12% 10% 8% 200% 8% 150% 6% 100% 67% 4% 3% 43% 50% 21% 2% 0% 0% Volumes NSV GM OP Volumes NSV GM OP EABLI Tanzania market: 160% 142% 140% • Positive growth in volumes and NSV 120% • Serengeti contribution to the EABL
Slide 17: Cost of Sales performance
DIAGEO Cost of Sales performance Cost of Sales Vs LY 45% 50% 40% 30% 20% Cost of Sales 18% 13% Volumes 20% 10% 0% With SBL Without SBL • Inflation on major inputs caused challenges • Forex depreciation accounted for £3m in COGS or 4% of the variance 17 SIX MONTHS ENDING 31 DEC 2011 VS PY (NB SERENGE
Slide 18: EABL F12 H1 financial statements
DIAGEO EABL F12 H1 financial statements... Interim Financial Report for the period ended 31 December 2011 (UNAUDITED) Consolidate d Income State me nt Six months to Six months to 31-Dec-11 31-Dec-10 Kshs M Kshs M Change % Net Revenue 27,777 20,463 36% Cost of Sales (14,321) (9,851) 45% Gross profit
Slide 19: Proposed Interim Dividend per share
DIAGEO Proposed Interim Dividend per share Proposed FY12 Interim Dividend per Share 2.50 Ksh FY11 Interim Dividend per Share 2.50 Ksh Total Cash to Shareholders 1,977m Ksh 19
Slide 20: Outlook
DIAGEO Outlook Seni Adetu Group Managing Director & CEO
Slide 21: As we look forward into the second half our focus will be
DIAGEO As we look forward into the second half our focus will be • Increased investment behind Innovation, Renovation and Marketing activity • Continued focus on input costs • Continued focus on premium spirits • Capex investment • Seeking Governmental support More consistent application of regula
Slide 22: We feel very positive about the future of EABL
DIAGEO We feel very positive about the future of EABL • Very encouraging long-term prospects for the consumer economy in the region • We have strong consumer brands with strong brand equities • We still have significant share growth potential in the geographies in which we operate • We have a proven
Slide 23: Q & A Session
DIAGEO ( eabl nn Q & A Session 23
Slide 24: Thank You
DIAGEO Thank You
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