Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — FY2023 Earnings Presentation
24 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Mar 22, 2024
Slide 1: Full Year 2023 Conference Call Presentation
FULL YEAR 2023 CONFERENCE CALL PRESENTATION 22 MARCH 2024 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: Important Disclaimer Regarding TAS29
Important Disclaimer Regarding TAS29 As stipulated by the decree of the Capital Markets Board, the financial statements for the FY2023 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
Slide 5: 2023 Performance in a nutshell: Another Successful Year
Solidin 2023 Performance a nutshell… Marks Another Successful Year… 1 Strengthened positions across the board Strong revenue performance with effective 2 portfolio play and PRGM 3 Effective management of costs leading to impressive gross profitability Prudent OPEX management despite low 4 base of LY
Slide 6: FY2023 Volume
Consolidated Volume Resilient Despite Many Challenges Across The Board… Anadolu Efes Beer Soft Drinks Consolidated Volume FY2023 (y-o-y) +5.0% -2.6% -0.5% 6
Slide 7: With Impressive Performance In Beer
With Impressive Performance In Beer… • Consolidated beer volume up by 5.0% in FY2023 • Türkiye, Russia and Georgia highly contributed • International beer volume up by 4.2% • Russian volume up by low-single digit • CIS countries’ volume down by low-single digit on average • Türkiye beer volume up 9.
Slide 8: Russia
Russia • Slight increase* in Russian beer market in FY2023 • 2H2023 relatively stronger • Our volumes up by low-single digits percentage despite challenging competitive landscape • Market leadership* both in value and volume share • Strengthened position in premium segment • Non-alco volumes up low-
Slide 9: Kazakhstan
Kazakhstan • Kazakh beer market down mid-single digits in FY2023; • Challenging economic and political situation • Our volumes better than the market • Sustained market leadership* with market share gain • Kruzhka Svezhego; one of the highest growing brand • #1 Brand of the market • Karagandinskoye
Slide 10: Georgia and Moldova
Georgia • Georgian beer market flattish in FY2023 versus LY • Our volumes grew by low-to-mid single digit; despite high base • Sustained market leadership* with market share gain • Karva & Natakhtari gained share • Solid growth recorded in premium brands • Premium craft beer brand “Taati” launched M
Slide 11: Türkiye
Türkiye • Market grew by high single digit* in FY2023; despite high inflation & lower consumer confidence • Our volume performance exceptionally good; up 9.1% • Good tourism helped both market & our volumes • Primary channel of purchase continued to be traditional trade • On-trade records relatively
Slide 12: Soft Drinks
Soft Drinks • Consolidated volumes down 2.6% in FY2023; • Türkiye and Pakistan volumes relatively softer • Central Asia and Iraq volumes contribution strong • Türkiye volumes down 5.1% • International volumes down by 1.1% • Pakistan down 16.4% due to macroeconomic disruptions • Uzbekistan up 25.8%;
Slide 13: Solid Financial Performance in 2023
Solid Financial Performance in 2023… Anadolu Efes Beer Group FY FY • Volume growth REVENUE TL159,877 mn TL58,003 mn NET • Effective pricing +3.1% -6.3% 17.9% 18.4% BNRI % EBITDA • Effective management of costs • Prudent OPEX spending (+45 bps) (+50bps) TL22,129 mn TL12,293 mn INCOME • Strong operati
Slide 14: Financial Overview
FINANCIAL OVERVIEW GÖKÇE YANAŞMAYAN Chief Financial Officer
Slide 15: Financials
Financials Anadolu Efes Beer Group mTL FY2022 FY2023 Change mTL FY2022 FY2023 Change Sales Revenue 155,060 159,877 3.1% Sales Revenue 61,872 58,003 -6.3% Gross Profit 53,556 59,000 10.2% Gross Profit 25,103 26,023 3.7% EBITDA (BNRI) 11,073 10,671 -3.6% EBITDA (BNRI) 27,021 28,573 5.7% Net Income/(Lo
Slide 16: EBITDA (BNRI) & Free Cash Flow Generation
EBITDA (BNRI) & Free Cash Flow Generation BEER GROUP BEER GROUP EBITDA (BNRI) Bridge mTL Free Cash Flow Bridge mTL -4% +71% -243 -458 -39 -1,115 -3,869 4,207 -717 4,302 11,073 10,671 -402 4,984 2,916 FY2022 Net Revenue COGS Selling, G&A Other FY2023 w/TAS29 Marketing Expenses w/TAS29 FY2022 EBITDA B
Slide 17: Impact of TAS29 – Anadolu Efes
Impact of TAS29 – Anadolu Efes NET REVENUE NET INCOME +63% +3% +44% 147.226 155.060 159.877 22.129 +12.652 +127% 15.384 90.482 +14.349 7.780 3.429 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 EBITDA FINANCIAL ITEMS +75% +
Slide 18: Impact of TAS29 – Beer Group
Impact of TAS29 – Beer Group NET REVENUE NET INCOME -6% +35% +50% 61.872 58.003 12.293 55.501 +2.502 9.096 36.954 +135% +8.595 3.698 1.571 FYFY2022 FYFY2023 FYFY2022 FY2023 FYFY2022 FYFY2023 FYFY2022 FYFY2023 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 EBITDA FINANCIAL ITEMS
Slide 19: Cash & Debt Management
Cash & Debt Management Anadolu Efes Gross Debt Cash USD 2.0 bn USD 1.4 bn Average maturity 72% 62% 3.3 yrs held in Hard Currency held in Hard Currency Net Debt/EBITDA 30% 0.7x held in Eurozone Beer Group Gross Debt Cash USD 0.8 bn USD 0.7 bn Average maturity 69% 68% 3.3 yrs held in Hard Currency hel
Slide 20: Risk Management
Risk Management Beer Group Beer Group Hedges for 2024: COGS Split for 2023: 8% Commodity : 19% 16% Aluminum: 66% for TR & CIS @$2.320 6% 17% 16% 20% FX Exposure : Barley-Malt & Auxiliary Overhead (Labour Cost) Russia: 100% Hedged Glass Bottle Amortization & Other Overhead (USD/RUB: 96.97 ;EUR/RUB: 1
Slide 21: FY2024 Priorities
FY2024 PRIORITIES
Slide 22: Strategic Core Priorities
Strategic Core Priorities WINNING PORTFOLIO ACCELERATORS: ▪ Consumer First ▪ 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 23: Q&A Session
Q&A SESSION
Slide 24: FX Rates
FX Rates FY2022 FY2023 Δ% AVG 16.57 23.78 43.53% USD/TL PE 18.70 29.44 57.44% AVG 17.38 25.72 48.01% EUR/TL PE 19.93 32.57 63.40% AVG 4.14 3.59 -13.36% TL/RUB PE 3.76 3.05 -19.01% AVG 27.82 19.19 -31.03% TL/KZT PE 24.74 15.44 -37.59% AVG 1.95 1.54 -21.28% TL/UAH PE 1.96 1.29 -34.03% AVG 1.14 0.76 -3
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