Coca-Cola Icecek A.S. · BIST:CCOLA
Coca-Cola Icecek A.S — DB Access Global Consumer Conference 2014
31 slides from Coca-Cola Icecek A.S's conference presentation, Jun 17, 2014
Slide 1: DB Access Global Consumer Conference
DB Access Global Consumer Conference June 17-19, 2014, Paris
Slide 2: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix 2
Slide 3: CCI at a glance
CCI at a glance Operating in one of the world’s most dynamic and exciting markets A gateway to Turkey, Pakistan, Central Asia and The Middle Shareholder Structure East Serving close to 370 million people; 60% of our population is below 30 years of age (1) Anadolu Efes and its fully-owned subsidiarie
Slide 4: We are capitalizing on favorable demand and demographic drivers
We are capitalizing on favorable demand and demographic drivers… Per cap 180 Sparkling Beverage Consumption vs GDP (2013) consumption (liters) Mexico 150 Argentina USA Germany 120 Brazil UK 90 Kuwait Spain South Africa Bulgaria Saudi Arabia Oman 60 Hungary Poland Jordan Turkey UAE Iraq Greece Italy
Slide 5: Our Near Term Strategic Priorities
Our Near Term Strategic Priorities Accelerate Grow the Improve balance Continue to build Build a world revenue and sparkling category sheet health and enhance our class organization margin growth in overall and per every year reputation international capita in Turkey operations To be the outstanding
Slide 6: …allowing us to expand successfully
…allowing us to expand successfully 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 ……… 2013 2004 ……… 2013 2004 ……… 2013 275mn UC… …424mn UC 480mn UC 533mn UC… …1.06 bn UC 2004… …2006 200
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 46% Int'l 44% Turkey Turkey 83% 85% Turkey Turkey 54% 56% 2005 2013 2005 2013 Volume Split - Category EBITDA Split Still; 15% Tea 7% Int'l; 15% Still 20% Int'l 46% Sparkling Turkey 85%
Slide 8: Strong Brand Positioning and Offering in Our Key Markets
Strong Brand Positioning and Offering in Our Key Markets Turkey Iraq Sparkling 66% Sparkling 26% #1 #2 Juice Water Energy Water 26% 6% #1 #2 Kazakhstan Pakistan Sparkling 48% Sparkling 30% #1 #2 Juice Water Juice Water 21% 10% 2% 9% #2 #3 #7 #3 Sources: Nielsen Retail Panel, 2013 & Retail Zoom. | No
Slide 9: Focus On Turning Volume Into Value
Focus On 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 1.84 Kazakhstan 2.10 1.65 Azerbaijan 2.10 1.92 Availability
Slide 10: Strong Financial Performance
Strong Financial Performance Volume Net Revenues EBITDA (milion uc) (TRL million) (TRL milion) * 17.2% 13.8% 892 1.058 5.186 484 2.273 413 2.121 275 574 2.913 142 479 2.121 275 142 2004 2013 2004 2013 2004 2013 Turkey International Turkey International Turkey International *EBITDA Margin Sources: Co
Slide 11: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix 11
Slide 12: Volume Breakdown 1Q14
Volume Breakdown 1Q14 NRTD** Tea 12% Volume Split Still Category* 20% Sparkling 68% Pakistan 18% Volume Split Iraq 9% Geography* Turkey 56% Kazakhstan 10% Others 7% Notes: (*) In unit cases; (**) NRTD: Non-ready-to-drink 12
Slide 13: Turkey Overview 1Q14
Turkey Overview 1Q14 ● Sparkling category grew at mid single digits ● Coke Zero continued to grow at double digits ● Successful «Share a Coke» Campaign ended in the quarter ● Still, excluding water, grew at mid teens ● Water contracted at high single digits 13
Slide 14: International Overview 1Q14
International Overview 1Q14 ● Double digit growth in all key international markets ● In Pakistan, Sprite & Spicy Campaign has started as the first national promotion in February PK KZ IQ ● In Kazakhstan, successful New Year +22% +35% +16% and Nowruz campaigns supported the volume growth in the quart
Slide 15: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix 15
Slide 16: Volume up by 13% in 1Q14
Volume up by 13% in 1Q14 Turkey International Consolidated Volume Volume Volume (million uc) (million uc) (million uc) 224 198 116 124 82 99 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 16
Slide 17: Net sales up by 25% in 1Q14
Net sales up by 25% in 1Q14 Turkey International Consolidated Net Sales Net Sales Net Sales (million TL) (million USD) (million TL) 1.148 917 553 614 205 242 1Q13 1Q14 1Q13 1Q14 2012 2013 17
Slide 18: EBITDA up by 16% in 1Q14
EBITDA up by 16% in 1Q14 Turkey International Consolidated EBITDA EBITDA EBITDA (million TL) (million USD) (million TL) * 14.1% * 17.8% 19.6% * 13.6% 12.6% 13.2% 151 130 120 98 28 30 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 * EBITDA Margin 18
Slide 19: Financial Expenses
Financial Expenses fremontca) ais Interest income 14 9 Interest expense (-) (38) (19) Foreign exchange gain / (loss) 18 1 Realized FX gain / (loss) — Borrowings 0 0 [uneatzes FX gain / (loss) — Borrowings (40) 2] Financial Income / (Expense) Net (46) (22)
Slide 20: Financial Debt Profile
Financial Debt Profile 1,446 1,192 620 5% 9% USD 1% 4% 2% 300 0% EUR 90% TL 120 89% 80 27 24 21 Others 2014 2015 2016 2017 2018 2020 2023 2013 1Q14 2,0x 1,8x 2013 1Q14 * 12 Month Trailing EBITDA 20
Slide 21: Free Cash Flow
Free Cash Flow 50 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 -39 -97 -88 -138 -135 21
Slide 22: Outlook and Guidance 2014
Outlook and Guidance 2014 ● High-single digit volume growth on a consolidated basis ● Turkey volume growth up at low-single digit ● Int’l volume up at mid teens ● Net revenue growth > volume growth ● Maintain EBITDA margin vs. 2013 22
Slide 23: Appendix
Appendix ● Financial Statements 2013 ● Corporate Structure ● Country Data ● Building a Sustainable Growth Business ● Turkey AFB Market ● Trade Structure in Turkey 23
Slide 24: Introduction to Financial Statements
Introduction to Financial Statements Basis of Preparation Consolidated / International Turkey $/TL $/TL Year-End Average Functional TL USD Currency December December 2.1343 1.9033 31, 2013 31, 2013 Reporting TL USD December December Currency 1.7826 1.7922 31,2012 31,2012 Presentation ∆ 19.7% ∆ 6.2%
Slide 25: International Consolidated Top Line Performance & Profitability
Top Line Performance & Profitability * 2013 2012 Change % Consolidated 2013 2012 Change % (TL million) EBIT 594 486 22.3% Volume (m/uc) 1,058 936 13.0% EBIT Margin 11.5% 10.9% EBITDA 892 730 22.2% Net Revenue (TL million) 5,186 4,449 16.6% EBITDA Margin 17.2% 16.4% Net Revenue per UC (TL) 4.90 4.75
Slide 26: Corporate Structure
Corporate Structure Coca-Cola İçecek A.Ş. 100.00% Tonus Turkish-Kazakh Joint 99.23% Venture L.L.P, CCI International Holland B.V. Coca-Cola Satış ve Dağıtım The Netherlands 99.96% Kazakhstan A.Ş., Turkey J.V. Coca-Cola Almaty Bottlers 51.23% L.L.P., Kazakhstan 48.77% Mahmudiye Kaynak Suyu 100.00%* 1
Slide 27: Country Data
Country Data % of pop. GDP per Per cap cons CCI’s Pop. in CCI’s 2013 below 30 cap. in of spark. m.share in Country 2013 Vol. years 2013 bev. in 2013 spark. bev. (mln) (3) Breakdown (3) ($) (2) (L) (4) in 2013 (5) Turkey 76.7(1) 50% 15,264 44 66% 54.2% Pakistan 184.4 64% 3,144 17 30% 19.5% Kazakhstan
Slide 28: 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 0,41 System Average 0,41 0,40 0,43 ● Winner: Turkey 2009 & 2013 0,27 0,26 0,28 ● Finalist: Jordan & Azerbaijan 2013
Slide 29: Turkey AFB Market
Turkey AFB Market AFB Market RTD AFB Market 5.5 billion uc (excluding milk) 1.5 billion uc (excluding milk) Other 2,8% Ayran 3,1% Sparkling Water 7,5% HOD 23,0% Fruit Juices & Sparkling Tea Still Drinks Beverages 44,9% 10,7% 39,3% RTD AFB 27,7% Bottled Water Hot 36,6% Coffee 2,5% Powder & Concentrat
Slide 30: 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 Hypermarket Other 2% 0% Discount Store 6% On Premise 20% Traditional Grocery 47% Supermarket 24% Source: Company Notes: On Premise Includes caterings, univ
Slide 31: Credit Rating and Glossary
Credit Rating Glossary • Long Term Issuer Rating, ‘Baa3’, Stable Outlook AFB: Alcohol Free Beverages (Moody’s rating, Mar.3, 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 U
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