Coca-cola Icecek A.s. · BIST:CCOLA
Coca-cola Icecek A.s — 9M16 Earnings Presentation
19 slides from Coca-cola Icecek A.s's earnings presentation, Nov 3, 2016
Slide 1: 9M16 Results
9M16 Results November 3, 2016 Istanbul
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: Operational Review
Operational Review Burak Başarır - CEO
Slide 4: All key metrics are on track in 9M16
All key metrics are on track in 9M16 Volume Revenue EBITDA 965 mn uc TL 5.675 bn TL 996 mn +2.8% vs. 9M15 +4.1% vs. 9M15 +4.8% vs. 9M15 OPEX Capex / Sales FCF Margin 23.1% 5.1% TL 531 mn vs. -0.4pp vs. 9M15 -4.7pp vs. 9M15 TL 86 mn in 9M15 4
Slide 5: 9M16 performance in our regions
9M16 performance in our regions Turkey Pakistan Cental Asia Middle East • Sales volume +1.3% • Sales volume +20% • Sales volume -13% • Sales volume -2% • Revenue growth • Revenue growth • Revenue drop • Revenue drop • Margin contraction • Margin expansion • Margin contraction • Margin expansion 5
Slide 6: Turkey's volume remains almost flat in 3Q16
Turkey’s volume remains almost flat in 3Q16 • Lower consumer confidence in July and weaker tourism in high season • Slight volume contraction in 3Q due to lower NRTD tea volumes • Volume growth in sparkling and still in 3Q • 0.9% growth in sparkling volume, ahead of transactions due to higher FC gro
Slide 7: Pakistan & Middle East posts 11% volume growth in 3Q16
Pakistan & Middle East posts 11% volume growth in 3Q16 • Double digit volume growth in 3Q • Strong momentum in sparkling • Successful revenue growth management • Significant margin expansion compared to last year • Challenging macroeconomic environment and security issues in Iraq • Total Iraq volume
Slide 8: Central Asia volume contracts by 10% in 3Q16
Central Asia volume contracts by 10% in 3Q16 • Better-than-planned performance • Stabilizing volumes with a lower base in the second half of the year • 6.6% volume contraction in Kazakhstan in 3Q16 • Gradual price increases to partly mitigate the adverse impacts of devaluations • Rationalizing opex
Slide 9: Financial Review
Financial Review Orhun Köstem - CFO
Slide 10: Macro details and definitions to consider
Macro details and definitions to consider Average Exchange Rates for each Period Quarterly Exchange Rate (local currency per USD) YTD Exchange Rate (local currency per USD) 3Q16 3Q15 9M16 9M15 Turkey 2,99 2,91 2,93 2,70 Pakistan 105 103 105 102 Kazakhstan 342 233 343 201 Azerbaijan 1,61 1,05 1,56 1,
Slide 11: Consolidated revenue up by 4%, mainly driven by Turkey
Consolidated revenue up by 4%, mainly driven by Turkey Consolidated Revenue (TL bn) • Consolidated revenue growth mainly driven by Turkey operations • Revenue per uc up by 7% in Turkey in 9M16 5.675 • Price increases on selective FC packages in early 2016 5.450 • Some dilutive impact due to higher s
Slide 12: Marginal expansion in consolidated EBITDA margin
Marginal expansion in consolidated EBITDA margin Consolidated EBITDA (TL bn) Turkey: 17.4% 17.6% • Adverse impact of foreign exchange rate on packaging materials • Higher operating expenses driven by marketing 951 996 • EBIT margin, excluding other, contracts both in 3Q16 and in 9M16 • One-off costs
Slide 13: Net Income supported by lower FX losses
Net Income supported by lower FX losses Net Interest Expense (TL mn) Net FX Loss (TL mn) Net Income (TL mn) • Lower net interest expense • TL 86 mn net FX loss • TL 332 mn net income in • Net USD/TL exposure of 9M16 vs. TL 113 mn in 1H15 USD 452 mn as of end 9M16 13
Slide 14: Financial leverage ratios continue improving
Financial leverage ratios continue improving Financial debt (US$ million) Maturity (US$ million) 1.160 1.081 2% 7% 18% TL & JD & KT & PKR 16% EUR 77% 80% USD 2015 9M16 Net Debt (US$ million) Net Debt / EBITDA* *12 Months Trailing EBITDA 14
Slide 15: Cash focus significantly improves metrics
Cash focus significantly improves metrics Net Operating Cash Capex (TL mn) Free Cash Flow (TL mn) Inc. Working Capital (TL mn) 885 729 9M15 9M16 Capex/Sales NWC/Sales 15
Slide 16: 2016 Guidance maintained
2016 Guidance maintained Volume Revenue EBITDA Consolidated: Low-mid single digit Net revenue growth > volume Flat consolidated EBITDA growth margin, compared to 2015 Turkey: Low single digit International: Low-mid single digit 16
Slide 17: Q&A
Q&A
Slide 18: Closing Remarks
Closing » Remarks
Slide 19: Thank you!
Thank you!