Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Q1 2014 Earnings Presentation
26 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, May 12, 2014
Slide 1: Damian Gammell, CEO and Onur Çevikel, CFO
Damian Gammell Onur Çevikel CEO CFO Strictly Confidential 1 12.05.2014
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: General Overview & Operating Performance
General Overview & Operating Performance by Damian Gammell Strictly Confidential 3
Slide 4: Consolidated Performance – 1Q2014
Consolidated Performance – 1Q2014 17.8 Sales Volume Breakdown* 16.2 Volume* Turkey Beer 8% • Consolidated sales volume (including International Beer 21% beer & soft drink volumes) reached Soft Drinks 71% 17.8mhl, up 10.2% in 1Q2014 vs. 1Q2013 1Q2013 1Q2014 Sales Revenue Breakdown* *On a combined bas
Slide 5: Soft Drinks Volume Development
Soft Drinks Volume Development 223.5 197.7 81.7 99.1 mu/c 116.1 124.5 1Q2013 1Q2014 Total volumes up by 13.1% y-o-y to 223.5 mu/c in 1Q2014 • Turkey volumes up by 7.2% y-o-y to 124.5 mu/c in 1Q2014 • International volumes up by 21.4% y-o-y to 99.1 mu/c in 1Q2014 Strictly Confidential 5
Slide 6: Beer Sales Volume Development
Beer Sales Volume Development 5.1 4.9 3.7 3.3 mhl 1.6 1.5 1Q2013 1Q2014 Total beer up by 3.7% y-o-y to 5.1 mhl in 1Q2014 • Turkey beer down by 11.3% y-o-y to 1.5 mhl in 1Q2014 • International beer up by 11.3% y-o-y to 3.7 mhl in 1Q2014 Strictly Confidential 6
Slide 7: Turkey Beer Operations
Turkey Beer Operations Volume Development The downward trend in volumes decelerated in 1Q2014 compared to 4Q2013, despite significantly higher sales prices, also contributed by a more favorable base impact in 1Q2014 mhl 1.6 1.5 In 1Q2014, domestic sales volumes were down by 10.5% y-o-y mainly du
Slide 8: International Beer Operations
International Beer Operations Volume Development In 1Q2014, sales volume of EBI rose by 11.3% y-o-y; • In Russia, our volume performance was better than our expectations due to brand initiatives as well as better mhl execution, supporting overall performance of EBI. 3.7 3.3 • Our brand initiatives p
Slide 9: Market Share Development in Russia
Market Share Development in Russia Market Share by Volume* – Russia Other 21.8% Carlsberg 37.0% EFES RUS 13.9% Heineken InBev 13.0% 14.3% Shares of Carlsberg and INBEV include Ukrainian brands • According to Nielsen, EFES RUS’ market share* was 13.9% in 1Q2014 up from 13.4% in 1Q2013 • Beer market s
Slide 10: Long Term Beer Group Strategy
Long Term Beer Group Strategy - It’s all about the consumer and delivering Brands choice, innovation and brand love - Great distribution and activation at the point of sale Execution - Lean and efficient organisation throughout the supply Efficiency chain and RTM - with our employees, governments, s
Slide 11: Strategic Update – Turkey Beer Operations
Strategic Update – Turkey Beer Operations • Focus on Brands in line with long-term strategy Brands • New SKU launches (Launch of Efes Malt in Feb. 2014 & Bomonti in April 2014 in returnable SKUs) • Creative & innovative executions to maximize in-store excellence Execution • Focus on field execution
Slide 12: Strategic Update – International Beer Operations
Strategic Update – International Beer Operations • Focus on Brands; Premiumization and further strenghtening main brands Brands • Pioneering innovation in the region; new launches & redesigns on the pipeline • Continued cooler placements to further increase cold availability Execution • Good momentu
Slide 13: Recent Developments
Recent Developments Approval of not to distribute dividends by General Assembly Moody’s affirmed Anadolu Efes’ rating as “Baa3 (investment grade)” with “Negative” outlook Management change – new MD appointed to Efes RUS Challenging macro & political environment in our international beer mark
Slide 14: Financial Overview
Financial Overview by Onur Çevikel Strictly Confidential 14
Slide 15: Anadolu Efes Consolidated Operational Snapshot - 1Q2014
ANADOLU EFES CONSOLIDATED Operational Snapshot - 1Q2014 Performance 1Q2013 1Q2014 Growth (% ) Total Sales Volume (mhl) 16.2 17.8 10.2% Net Sales (million TRL) 1,698.1 2,016.4 18.7% Gross Profit (million TRL) 733.9 837.3 14.1% Gross Profit margin (% ) 43.2% 41.5% -169 bps EBITDA (million TRL) 222.2 2
Slide 16: Turkey Operational Snapshot - 1Q2014 Performance
TURKEY- Operational Snapshot-1Q2014 Performance 1Q2013 1Q2014 Growth (% ) Total Sales Volume (mhl) 1.6 1.5 -11.3% Net Sales (million TRL) 354.4 339.3 -4.2% Gross Profit (million TRL) 250.1 237.2 -5.1% Gross Profit margin (% ) 70.6% 69.9% -67 bps EBITDA (million TRL) 102.1 96.2 -5.8% EBITDA margin (%
Slide 17: Turkey Beer Operations - Free Cash Flow
TURKEY BEER OPERATIONS - FREE CASH FLOW (m TRL) 1Q2013 1Q2014 EBITDA 102.1 96.2 Change in Inventory 60.2 24.7 Change in Trade Receivables -97.6 -71.4 Change in Trade Payables 7.6 1.5 Change in Other Assets/ Liabilities -68.8 86.2 Change in Working Capital -98.6 41.1 Income Taxes & Employee Benefits
Slide 18: Efes Breweries International Operational Snapshot
EFES BREWERIES INTERNATIONAL Operational Snapshot - 1Q2014 Performance 1Q2013 1Q2014 Growth (% ) Total Sales Volume (mhl) 3.3 3.7 11.3% Net Sales (million USD) 237.9 237.8 0.0% Gross Profit (million USD) 85.1 92.3 8.5% Gross Profit margin (% ) 35.8% 38.8% 305 bps EBITDA BNRI (million USD) 2.0 9.5 38
Slide 19: Efes Breweries International – Free Cash Flow
EFES BREWERIES INTERNATIONAL – FREE CASH FLOW (m USD) Reported 1Q2013 1Q2014 EBITDA 0.6 7.7 Change in Inventory -31.6 3.3 Change in Trade Receivables 10.9 0.2 Change in Trade Payables 30.0 0.9 Change in Other Assets/ Liabilities -4.5 4.9 Change in Working Capital 4.9 10.3 Income Taxes & Employee Ben
Slide 20: Net Financial Debt & Financing
Net Financial Debt & Financing Anadolu Efes Consolidated Efes Breweries International • Consolidated gross debt at 4,743.4 m TRL • Consolidated gross debt at USD 174.4 m • Cash & cash equivalents at 1,543.2 m TRL - Net debt position of • Cash & cash equivalents at USD 124.9 m - Net debt position 3,2
Slide 21: Financial Income / Expense
Financial Income / Expense Anadolu Efes Consolidated - Financial Income / (Expense) Breakdown (TRL m) 1Q2014 Interest income 23.9 Interest expense -53.1 Foreign exchange gain 309.3 Foreign exchange loss -424.8 Other financial expenses -2.4 Net Financial Income /(Expense) -146.9 Strictly Confidential
Slide 22: Summary & FY2014 Outlook
SUMMARY & FY2014 OUTLOOK by Damian Gammell Strictly Confidential 22
Slide 23: Summary
Summary • Despite some unexpected challenges, volume & financial performance in 1Q2014 was better than our expectations Strong growth was achieved in Turkey and international soft drink operations The downward trend in beer volumes decelerated in Turkey International beer operations made a sol
Slide 24: 2014 Outlook
2014 Outlook In 1Q2014, our volume and financial performance was better than our expectations. This proved our confidence on the results of the initiatives we have taken. However, 1Q is a small one and it may not be a good indicator for the full year performance. Moreover, our operating region
Slide 25: Questions Please
? QUESTIONS PLEASE ? Strictly Confidential 25
Slide 26: Strictly Confidential
Strictly Confidential 26