Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — FY2019 Earnings Presentation
22 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Feb 28, 2020
Slide 1: FY2019 Conference Call Presentation
FY2019 CONFERENCE CALL PRESENTATION 28.02.2020
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 Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT APPENDIX Can Çaka CEO & Beer Group President
Slide 4: 2019 in a Nutshell
2019 in a Nutshell Strong topline growth & margin expansion Robust Free Cash Flow generation with lowest ever Core Working Capital Zero Based Spending – Optimizing cost and CAPEX Winning with our brands and portfolio Market leadership achieved in Russia & Ukraine Market share gains in Moldova and Ge
Slide 5: Anadolu Efes 4Q Financial Highlights
Anadolu Efes 4Q Financial Highlights VOLUMES Positive contribution to beer volumes from international beer 4Q FY2019 Solid volume growth delivered in Turkey soft drink operations +2.4% +1.9% REVENUE Price increases in all business units 4Q FY2019 Higher volumes in international beer Favora
Slide 6: Volumes, Revenue, EBITDA
EBITDA>Revenue>Volume Turkey Beer International Beer Soft Drinks VOLUMES 108.8 110.9 Breakdown 5% 28% 67% mhl Turkey Beer International Beer Soft Drinks REVENUE 23,314 Breakdown 19,164 10% 53% mn TL 38% EBITDA (BNRI) 16.8% Turkey Beer International Beer Soft Drinks Excluding IFRS 16 15.6% Breakdown
Slide 7: Beer Group
Beer Group SALES VOLUME VOLUME BREAKDOWN* BY COUNTRY 36.2 Kazakhstan Others 34.2 4% Turkey 6% 15% Ukraine mhl 30.8 15% 28.5 5.7 5.4 2018 2019 Russia 59% Turkey International *Breakdown is on a combined basis Beer Group volume growth of 4.8% in 4Q2019 Solid volume performance Russia and Ukraine i
Slide 8: Beer market down mid-single digit in Turkey
Beer market down mid-single digit in Turkey… Turkey Beer 12.8% All FMCG sectors under pressure Margin Macro dynamics 4Q2019 18.0% Low consumer confidence -0.2% Beer market down mid-single digit Low affordability -7.1% Volume Revenue EBITDA Premium category expansion Continued to invest
Slide 9: Market leadership in every international operation
Market leadership in every international operation… International Beer Strong volume performance in all international markets Margin 22.2% Russian beer market was almost flat 41.4% 4Q2019 Our volumes grew by high single digit 26.3% Successful integration & focus on net revenue growth Becam
Slide 10: CIS & Turkey compensated lower volumes in Pakistan
CIS & Turkey compensated lower volumes in Pakistan… Soft Drinks SALES VOLUME VOLUME BREAKDOWN* BY COUNTRY Others 7% 1,314.9 1,316.3 Iraq 8% Kazakhstan 11% m u/c 664.5 654.2 Turkey 50% 650.5 662.2 Pakistan 23% 2018 2019 *Breakdown is on a combined basis Turkey International Consolidated sales volum
Slide 11: Financial Overview
FINANCIAL OVERVIEW APPENDIX N. Orhun Köstem Chief Financial Officer
Slide 12: EBITDA margin expanded, outperforming guidance
EBITDA margin expanded, outperforming guidance… ANADOLU EFES BEER GROUP TURKEY BEER EBI 23,314 19,164 22% Net Sales 30% 11,069 8,541 32% 8,765 21% 6,633 1,870 2,255 2018 Proforma 2019 2018 Proforma 2019 2018 2019 2018 Proforma 2019 Margin: 35.4% 37.7% 38.1% 41.4% 56.4% 54.2% 32.6% 37.7% Gross Profit
Slide 13: Pillars of Beer Group EBITDA Growth
Pillars of Beer Group EBITDA Growth Year on year 36% EBITDA growth came as a result of; Higher volumes in international operations Revenue growth outperforming volume growth Extraction of synergies Positive conversion effect * * Proforma & Reported Restated 13
Slide 14: Strong Cash Generation
Strong Cash Generation Beer Group 4,038 Anadolu Efes 14
Slide 15: Balance Sheet FX Exposure Mitigated
Balance Sheet FX Exposure Mitigated... Hedged majority of outstanding debt via various instruments; both at Anadolu Efes & Beer Group level December 2018 December 2019 Anadolu Efes Unhedged 57% of our debt is hedged Unhedged 43% through Net Investment Hedged 42% 58% Hedge and CCS as of 4Q2019 Hedged
Slide 16: Balance Sheet Discipline Maintained
Balance Sheet Discipline Maintained… Net Debt / EBITDA (BNRI)1 Maturity Schedule2 596 Anadolu Efes Consolidated 522 -61% of cash is hold as hard currency 1.5 M USD 236 times -80% of debt is in hard currency 141 1.0 (57% of our debt is hedged through 115 Net Investment Hedge and CCS) 98 FY2018 FY2019
Slide 17: 2020 Financial Priorities
2020 Financial Priorities CASH MANAGEMENT • Funding plan for 2020 is on track DEBT • Manage leverage ratios and maturity MANAGEMENT schedule • Manage FX & Commodity Exposure RISK MANAGEMENT • Working capital solutions EXPENSE • Zero Based Spending MANAGEMENT • Focus on Balance Sheet Health PRODUCTIV
Slide 18: Priorities & Outlook
2020 APPENDIX PRIORITIES & OUTLOOK Can Çaka CEO & Beer Group President
Slide 19: 2020 Priorities
2020 Priorities Win with Core Brands Value Growth through Portfolio Play & Premiumization Lead in Quality in Every Touch Point Improve Corporate Wisdom Improve People & Organizational Capability Explore Opportunities in Growing Segments Leverage Financial Discipline to Drive Strong Free Cash Flow Ge
Slide 20: Detailed 2020 Guidance
Detailed 2020 Guidance SALES VOLUME Consolidated grow by low-to-mid-single digit Total Beer grow by low-to-mid single digit Turkey Beer to be flat to grow by low-to-mid single digit while outperforming the market. The competitive environment became tougher within the last year and Russia we expect t
Slide 21: Q&A Session
Q&A SESSION APPENDIX Can Çaka CEO & Beer Group President N. Orhun Köstem Chief Financial Officer
Slide 22: FX Rates
FX Rates FY2018 FY2019 Δ% AVG 4.83 5.67 17.4% USD/TL PE 5.26 5.94 12.9% AVG 5.68 6.35 11.8% EUR/TL PE 6.03 6.65 10.3% AVG 12.98 11.41 -12.1% TL/RUB PE 13.21 10.42 -21.1% AVG 71.41 67.51 -5.5% TL/KZT PE 73.03 64.17 -12.1% AVG 5.63 4.56 -19.1% TL/UAH PE 5.26 3.99 -24.2% AVG 3.48 3.10 -10.9% TL/MDL PE
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