Coca-Cola Icecek A.S. · BIST:CCOLA
Coca-Cola Icecek A.S — DB Access Global Consumer Conference 2015
32 slides from Coca-Cola Icecek A.S's conference presentation, Jun 11, 2015
Slide 1: DB Access Global Consumer Conference, 9-11 June 2015, Paris
We care for the environment! Our presentation is available on www.cci.com.tr. We will be very pleased if you return it after the meeting in order to reuse. Thank you! DB Access Global Consumer Conference 9 - 11 June, 2015, Paris
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek’s (“CCI”) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward- looking statements can generally
Slide 3: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 4: CCI at a glance
CCI at a glance Operating in one of the world’s Kazakhstan most dynamic and exciting Kyrgyzstan AZ Turkey Turkmenistan Tajikistan markets Syria Iraq Jordan Pakistan A gateway to Turkey, Pakistan, Central Asia and The Middle Shareholder Structure East Public Held (3) Anadolu Serving more than 370 mil
Slide 5: Favorable demographics and growing economies
Favorable demographics and growing economies Per cap 180 Sparkling Beverage Consumption vs GDP (2014) consumption (liters) 150 Mexico USA Argentina Germany 120 Brazil 90 UK Spain South Africa Saudi Arabia Bulgaria Oman 60 Hungary Poland Iraq Turkey Greece TurkmenistanJordan CCI territory total Kazak
Slide 6: Successful expansion
Successful expansion CCI expanded by adding +40mn* potential consumers per year over the last 7 years No. of countries Population served* (mn) Operating plants 1 10 71 370 5 23 2004 ……… 2014 2004 ……… 2014 2004 ……… 2014 275mn UC… …424mn UC 480mn UC 533mn UC… …1.13 bn UC 2004… …2006 2007 2008… …2014 E
Slide 7: Diversifying across geographies and categories
Diversifying across geographies and categories Volume Split - Geography Revenue Split Int'l 17% Int'l 15% Int'l 49% Int'l 49% Turkey Turkey 83% 85% Turkey Turkey 51% 51% 2005 2014 2005 2014 Volume Split - Category EBITDA Split Still 15% Tea 8% Int'l 15% Still 21% Int'l 57% Sparkling Turkey 85% Spark
Slide 8: Strong brand positioning in key markets
Strong brand positioning in key markets Turkey Iraq Sparkling 66% Sparkling 29% #1 #2 Juice Water Energy Water 27% 6% #1 #2 Kazakhstan Pakistan Sparkling 49% Sparkling 35% #1 #2 Juice Water Juice Water 8%* 9% 2% 8% #5 #4 #8 #3 *Our market share in premium and mainstream segment is 23% with #1 positi
Slide 9: Turning volume into value
Turning volume into value Revenue Operating Strategic Growth Productivity Expenses Procurement Management Management Segmentation Production Sugar Selling, Marketing 2006 2013 and Distribution Turkey 1.74 1.41 Expenses Jordan 3.44 2.00 Kazakhstan 2.10 1.65 Azerbaijan 2.10 1.92 Availability Water use
Slide 10: Successful track record
Successful track record Volume Net Revenues EBITDA (milion uc) (TRL million) (TRL milion) 5.985 1.131 2.924 962 553 549 275 1.032 3.061 578 142 413 275 1.032 142 2004 2014 2004 2014 2004 2014 Turkey International Turkey International Turkey International Sources: Company. Notes: CC Beverages Pakista
Slide 11: Near term strategic priorities
Near term strategic priorities 11
Slide 12: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 13: Highlights in 1Q15
Highlights in 1Q15 ● Net revenue and EBITDA growth in a challenging environment ● Volume decline seasonally in the smallest quarter cycling the high base in 1Q14 with significant headwinds in all markets ● Improved Turkey profitability supported by strong pricing ● Currency devaluations and slower e
Slide 14: Volume and category split - 1Q15
Volume and category split -1Q15 Volume Split by Category Volume Split by Geography* 12,0% 6,7% Other 13,6% 14,3% 7% Sparkling Kazakhstan 6,2% 6,4% 9% Still exc. Iraq Water 10% Turkey 68,2% 69,2% Water 52% NRTD Pakistan Tea 21% 1Q14 1Q15 Notes: (*) In unit cases 14
Slide 15: Turkey profitability improves
Turkey profitability improves ● Weak consumer environment, unfavorable weather, strong base in 1Q14 ● Excluding NRTD tea, volume down by 5% ● Sprite brand registered almost 50% growth ● Ice tea continued to grow at double digits ● NRTD tea contracted at double digits Category Growth Still & Water Sp
Slide 16: Pakistan & Middle East delivers 8% volume growth
Pakistan & Middle East delivers 8% volume growth ● Pakistan volume up by 13% • Iraq volume declined by 1% ● Continued market share gains • Security problems continued to put pressure on volume in the North ● Strong sparkling growth supported by • Challenging trading environment in South 18% Coca-Col
Slide 17: Central Asia volume remains almost flat
Central Asia volume remains almost flat • Currency devaluations in Central Asia • Azerbaijan volume contracted by 8% • Both Tajikistan and Turkmenistan grew at double digits ● Kazakhstan volume contracted by 2%, cycling a very strong base of 35% growth in 1Q14 ● Challenging consumer environment ● Ma
Slide 18: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 19: Top Line Performance
Top Line Performance Consolidated 1Q15 1Q14 Change % Volume (m/uc) 218 224 (2,3%) Net Revenue (TL mn) 1.203 1.148 4,8% Net Revenue per UC (TL) 5,51 5,13 7,3% Turkey Volume (m/uc) 115 124 (8,0%) Net Revenue (TL mn) 626 614 2,1% Net Revenue per UC (TL) 5,47 4,93 10,9% International Volume (m/uc) 104 9
Slide 20: Profitability
Profitability* Consolidated 1Q15 1Q14 Change % EBIT 76 69 11,2% EBIT Margin 6,3% 6,0% EBITDA 160 149 7,6% EBITDA Margin 13,3% 13,0% Turkey EBIT 58 48 20,4% EBIT Margin 9,2% 7,8% EBITDA 92 81 14,0% EBITDA Margin 14,7% 13,1% International EBIT 5 8 (29,2%) EBIT Margin 2,3% 3,1% EBITDA 26 29 (10,6%) EBI
Slide 21: Financial Expenses
Financial Expenses (TL million) 1Q15 1Q14 Interest income 11 14 Interest expense (-) (43) (38) Foreign exchange gain, net 102 32 Foreign exchange loss from borrowings, net (256) (54) Financial Income / (Expense) Net (187) (46) 21
Slide 22: Financial Debt Profile
Financial Debt Profile Financial Debt (US$ million) Maturity (US$ million) 622 1.140 1.143 1% 1% 13% 12% TL & JD PKR 215 USD 86% 87% 120 85 80 21 2014 1Q15 2015 2016 2017 2018 2020 2023 Net Debt/EBITDA Net Debt (US$ million) 1Q15 2014 Change 2,45 Total Financial Debt 1,143 1,14 0% 1,96 2,01 Total Ca
Slide 23: Free Cash Flow
Free Cash Flow Net Operating Cash Capex (TL million) Free Cash Flow (TL million) Incl. Working Capital (TL million) 50 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 -19 -88 -138 -227 -246 23
Slide 24: Appendix
Appendix ● Financial Statements 2014 ● Corporate Structure ● Country Data ● Turkey AFB Market ● Trade Structure in Turkey
Slide 25: Top Line Performance (2014)
Top Line Performance Consolidated 2014 2013 Change % 4Q14 4Q13 Change % Volume (m/uc) 1,131 1,058 6.9 % 198 204 (2.7%) Net Revenue (TL million) 5,985 5,186 15.4% 1,083 1,003 8.0% Net Revenue per UC (TL) 5.29 4.90 8.0% 5.47 4.92 11.1% 2014 2013 Change % 4Q14 4Q13 Change % Turkey Volume (m/uc) 578 574
Slide 26: Profitability (2014)
Profitability (TL million) 2014 2013 Change % 4Q14 4Q13 Change % Consolidated EBIT 629 594 5.8% (8) 24 n.m. EBIT Margin 10.5% 11.5% (0.7%) 2.4% EBITDA 962 892 7.8% 71 105 (32.7%) EBITDA Margin 16.1% 17.2% 6.5% 10.5% Net Income/(Loss) (excl. One-off) 315 247 27.6% (37) (49) (25.6%) (TL million) 2014
Slide 27: Corporate Structure
Corporate Structure Coca-Cola İçecek A.Ş. 100.00% Tonus Turkish-Kazakh Joint 100.00% Venture L.L.P, CCI International Holland B.V. Coca-Cola Satış ve Dağıtım The Netherlands 99.97% Kazakhstan A.Ş., Turkey J.V. Coca-Cola Almaty Bottlers 51.23% L.L.P., Kazakhstan 48.77% Mahmudiye Kaynak Suyu 100.00%*
Slide 28: Country Data
Country Data % of pop. GDP per Per cap cons CCI’s Pop. in CCI’s 2014 below 30 cap. in of spark. m.share in Country 2014 Vol. years 2014 bev. in 2014 spark. bev. (mln) (2) Breakdown (2) ($) (3) (L) (4) in 2014 (5) Turkey 77.7 (1) 49% (1) 19,556 41 66% 51.1% Pakistan 185.1 63% 4,746 19 35% 21.2% Kazak
Slide 29: Building a Sustainable Growth Business
Building a Sustainable Growth Business Energy usage ratio (MJ lt of product) TCCC EAG President’s 2005 2013 1,69 Sustainability Awards ● Best Country Bottling Coca-Cola Operation Award 0,44 0,40 0,41 System Average 0,41 ● Winner: Turkey 2009 & 2013 0,27 0,26 0,28 ● Finalist: Jordan & Azerbaijan 2013
Slide 30: Turkey AFB Market
Turkey AFB Market AFB Market RTD AFB Market 5.4 billion uc (excluding milk) 1.6 billion uc (excluding milk) Sparkling Other Water 3,6 7,5 Dairy/Soy 3,8 HOD 24,1 Sparkling Fruit Juice Bev Tea 10,5 37,3 45,1 RTD AFB 29,3 Bottled Water 37,0 Hot Coffee 2,6 Source: Canadean, 2014 Notes: RTD: Ready-to-dri
Slide 31: Trade Structure in Turkey
Trade Structure in Turkey ● Half of volume delivered by traditional trade channels ● Highest retail coverage among all FMCG categories in Turkey Other Discounter 1,3 5,7 On Premise 22,7 Traditional 50,1 Modern 20,2 Source: Company Notes: On Premise Includes caterings, universities, workplaces, trans
Slide 32: Credit Rating, Glossary and Investor Relations contacts
Credit Rating Glossary • Long Term Issuer Rating, ‘Baa3’, Stable Outlook AFB: Alcohol Free Beverages (Moody’s rating, Apr 15, 2014) • Foreign Currency Senior Unsecured rating and CAGR: Compound Annual Growth Rate CMB: Capital Markets Board of Turkey IDR ‘BBB’, Stable Outlook • Local Currency Senior
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