East African Breweries Plc · NSEKE:EABL
East African Breweries — H1 F23 Earnings Presentation
30 slides from East African Breweries's earnings presentation, January 2023
Slide 1: F23 Half-Year Results
F23 Half-Year Results January 2023
Slide 2: Agenda
Agenda Business Review Financial Review Looking Ahead Q&A eabl&
Slide 3: Agenda: Business Review
Agenda Business Review Operating Environment Strategy Strategic Imperatives Enablers eabl&
Slide 4: Volatile Operating Environment
VOLATILE OPERATING ENVIRONMENT K Tay. = &5 7 =,
Slide 5: Tough Macros
TOUGH MACROS GDP 75% 6.1% 5.6% 4.6% 5. 4.9% | 5.1% Kenya Uganda Tanzania HM 2021 MM 2022 Ml 2023F Kenya Uganda Tanzania HM 20212 Ml 2022 H1 Ml 2022 H2 Currency 0.3% 0.3% 12.3% Kenya Uganda Tanzania HM 2021H2 MM 20221 «MM 2022 H2 a % . ‘A e able Sources: EIU Dec '22; Currency appreciation / (deprecia
Slide 6: Steep Increase in Kenya Excise
STEEP INCREASE IN KENYA EXCISE Excise duty per litre (Kes) a SPIRITS DD 142 356 122 279 266 16 253 m 105 210 » p zB — eee a ee oe lr Uri Cr 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
Slide 7: Shift in Consumer Behavior
SHIFT IN CONSUMER BEHAVIOR Strained Wallet Value Seeking F Occasional Luxury Experiences lignan, I j
Slide 8: Our Strategy
OUR STRATEGY eabl To create the best performing, most trusted and respected consumer products company in Africa Explode ; " Wi hape N' “neor ‘ Mainstream Premium . Frontiers Spirits Digital Transformation Aspirational and Accessible Innovations Route to Reputation, 5 ly Footprint Efficient Growth Co
Slide 9: Delivering Topline Growth and Sustained Profit
DELIVERING TOPLINE GROWTH AND SUSTAINED PROFIT +4% Kes 57.3bn
Slide 10: Kenya Uganda Tanzania
KENYA -1% 64% of total EABL UGANDA +19% 20% of total EABL TANZANIA +11% 16% of total EABL
Slide 11: Premium & Spirits Driving Growth
PREMIUM & SPIRITS DRIVING GROWTH Explode Mainstream Spirits Shaping New Frontiers Sha S284 OBA come +2% +4% +13% -2% > om
Slide 12: Strong Brands Meeting Consumer Needs
STRONG BRANDS MEETING CONSUMER NEEDS Premiumisation Experiences Innovation Occasions BEST ENJOYED
Slide 13: Continued Investment in Our Commercial Capability
CONTINUED INVESTMENT IN OUR COMMERCIAL CAPABILITY On & Off Trade Execution Emerging Channels
Slide 14: Pioneering Experiences Through Digital Transformation
PIONEERING EXPERIENCES THROUGH DIGITAL TRANSFORMATION | fe aa 7 . - Hi TueNON be ny io P38 . al . & ra co. Scan Me to Fr) Turn on the Spirit of the Season
Slide 15: Society 2030: Spirit of Progress - Forging Ahead on ESG
SOCIETY 2030: SPIRIT OF PROGRESS - FORGING AHEAD ON ESG ie ua tu hufanya (WD eT mean.
Slide 16: Investing to Guarantee Supply
INVESTING TO GUARANTEE SUPPLY UBL RTD Plant UDV MSS Line Expansion 5 t Moshi Expansion
Slide 17: Our People & Culture Underpinning Performance
OUR PEOPLE & CULTURE UNDERPINNING PERFORMANCE People Centricity Flexi Working Performance Management
Slide 18: Award Winning Organisation
AWARD WINNING ORGANISATION MSK 7 Awards 1 Award 2 Awards
Slide 19: Please hold questions
ne) c be ® x s ° -s questions Please hold
Slide 20: Agenda: Financial Review
Agenda Financial Review Profit & Loss Overview Balance Sheet & Cash Capex
Slide 21: Profit & Loss Overview
Net Sales Cost of Sales Gross Profit Expenses EBIT Net Finance Cost Profit Before Tax Income Tax Profit After Tax 57.3 (30.7) 26.6 (113) 15.2 (2.4) 129 (4.2) 8.7 54.9 (28.4) 26.5 (11.4) 15.1 (2.2) 12.9 (4.1) 8.7 4% 8% 0% -1% 1% 8% 0% 0% 0%
Slide 22: Growth Despite Challenges
GROWTH DESPITE CHALLENGES Net Sales Value EBIT Earnings per Share* | Net Soles Value a ae —GM% — EBIT% a . 15.1bn 15.2bn 16.90 17.26 7.8bn 5.51 F21 F22 F23 F21 F22 F23 F21 F22 F23 cmp ea ble *Annualised (Kes)
Slide 23: Excise & Inflation Challenging
EXCISE & INFLATION CHALLENGING f 27.5% -0.9% 1.0% | 26.6% —| 4.6% —| EBIT% Inflation Excise Price Productivity Mix Volume Expenses EBIT% H1F22 impact H1 F23
Slide 24: Balance Sheet
BALANCE SHEET Current Assets Current Liabilities 454 67 55.0 35.4 ies FY 22 Cash Stocks Debtors Income F23HI FY 22 Creditors Bank Borrowings Lease F23 HI tax Overdraft Liabilities Non-Current Assets 55 802 FY 22 PPE Additions Other Nor F23 H1 FY 22 Deferred Other F23 HI Current Assets Income Tax
Slide 25: Key Ratios Within Range
KEY RATIOS WITHIN RANGE Net Debt / EBITDA 21 21 (Board Target: <1.5) EBIT / Interest 67 64 (Board Target: >4.0) FY20 FY2I FY22 £23 FY20 FY2I FY22 £23 (Annualised) (Annualised) 4% 0.85 0.85 - 40% 0.84 oe? oO a 25% 25% (Board Target: >0.8) FY20 FY2I FY22 F283 FY20 FAI FY22 F283 (Annualised) (Annualise
Slide 26: Cashflow
CASHFLOW Kes bn Net cash from operations Kes 15.1bn 18.4 “2.2 Asatstart Cashfrom Changes Net interest Income tax Investing Financing —_-Fx Impact F23 H1 of year operations — in working paid paid activities activities capital
Slide 27: Sustained Capex
SUSTAINED CAPEX Kes bn H1 Capex F21HI — Capex % NSV F22 HI F23 HI Capex by Category H1 Environment Returnables Maintaining Current [47 Operations Capacity Expansion
Slide 28: Agenda: Looking Ahead
Agenda Looking ahead Q&A eabl®
Slide 29: H2 Focus Areas
H2 FOCUS AREAS _— Consumer centricity Quality top-line growth Margin expansion an ®F SN Wey | fey a te J Reputation; Society 2030 ) Ist People <<
Slide 30: Q&A Session
Q&A Session a,
East African Breweries — H1 F23 Earnings Presentation on 6ix