Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (March 2022)
33 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, March 2022
Slide 1: Anadolu Efes Investor Presentation
ANADOLU EFES INVESTOR PRESENTATION March 2022
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: Anadolu Efes at a Glance
ANADOLU EFES AT A GLANCE ANADOLU EFES
Slide 4: Regional Beverage Company With Leadership Positions
Regional Beverage Company With Leadership Positions Serving Anadolu Efes CCI 116 mhl 7.0TL Sales Volume** 750 mn 5 Europe’s *th Among EBITDA** Population World’s 9*th Top 10 Largest 39.3 bn TL 4.3 bn TL 70+ Export Largest Coca-Cola Sales Revenue** Free Cash Flow** Brewer Bottlers Countries BEER OPER
Slide 5: Integrating Governance and Growth
Integrating Governance and Growth Superior Governance and Strategic Partnership Broad Geographical and Business Diversification ANADOLU EFES More Balanced Business Mix** BEER 2021 SOFT DRINK OPERATIONS OPERATIONS Turkey Beer 24% 43% RUSSIA UKRAINE 20.1% ) 33% 50.3% Free Float 28.1% 1.5% Free Float
Slide 6: Vision & Mission
Vision,&Mission Russia Ukraine& Beer Volume Breakdown Values OUR VISION: OUR MISSION: Be the largest brewer from Adriatic to We brew joy passionately and China by developing and owning social responsibly. life and beer culture. OUR VALUES: PASSIONATE AGILE COLLOBRATIVE ACCOUNTABLE FAIR
Slide 7: Consistent Solid Growth with Growing Share in International
Consistent Solid Growth with Growing Share in International More Balanced Business Mix** 6% Volume Growth* 2021 32% 30% 44% 2016 56% 68% Revenue Growth* Soft drinks Beer Group 32% Growing International Business** EBITDA Growth* 2021 30% 33% 48% 2016 52% FCF Growth* 70% International Turkey * 2016-20
Slide 8: Solid Investment Theme
Solid Investment Theme Diversified business model including Strategic Partnerships with World’s leading beer and soft drinks FMCG companies; AB InBev & TCCC Excellent brand portfolio including some of Strong market positions across all operations the world’s best known brands and strong regional bra
Slide 9: Beer Operations
BEER OPERATIONS ANADOLU EFES
Slide 10: Strong Positions Across the Board
Strong Positions Across the Board 11 Breweries RUSSIA 3 Breweries TURKEY World’s 6th largest beer market 11 liters per capita 54 liters per capita #1 Position #1 Position 52% Market share 30% Market share 13% of Beer Volumes 63% of Beer Volumes 2 Breweries KAZAKHSTAN 3 Breweries UKRAINE Beer market
Slide 11: Product Portfolio Priorities
Product Portfolio Priorities Focus on Develop Premium Ensure New Products Portfolio Affordability & Make Expansion Play Innovations Strengthen Expand into the Core Adjacent segment Categories / NABLAB
Slide 12: More Room for Growth with Lower Per Capitas
More Room Russia & Ukraine for Growth with Lower Per Caps Beer Consumption Per Capita in 2021 (in liters)2 143 98 96 93 92 89 88 84 78 75 74 73 72 69 67 67 63 63 Average: 63.1 Litres 61 54 53 51 50 47 43 Average: 34.0 Litres 34 34 33 33 33 31 30 11 Serbia Russia Norway Austria Moldova Romania Sloven
Slide 13: Volumes outperforming pre-Covid period in FY2021
Volumes outperforming pre-Covid period in FY2021… Consolidated Beer Volume Operations 4Q 4Q FY +13% reported +6% +5% +7% organic International 4Q FY FY +5% +5% +12% reported Turkey 4Q FY +11% organic +10% +5% *Organic refers to sales volume excluding the impact of Uzbekistan in 4Q2021
Slide 14: Russia & Ukraine 2021 Highlights
Russia 2021 Highlights & Ukraine Russia • Mid-to-high single growth in FY • Value and volume leadership maintained • Significant increase in rev/hl; price increases & premiumization • Strong growth by global brands; led by Bud; contributing to topline • Expanding portfolio: especially NA, #2 Player
Slide 15: CIS
CIS • CIS countries’ volume up by mid-teens in FY • Kazakhstan benefitted from eased restrictions • Efes Pilsener 0% was launched • Flavoured Beer & New Category developed • Miller was the leader in Super Premium category • Strong performance in all sales channels, particularly in on-trade in Moldov
Slide 16: Turkey
Russia & Ukraine Turkey • Turkey total volume up by 5% in FY • Double-digit growth achieved in export volumes to China and MENA countries • Macroeconomic headwinds will be critical for 2022 • Bud has reached its highest market share • Efes Özel Seri broke its own record in volume terms • Innovation
Slide 17: Soft Drinks
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Slide 18: Strategic Soft Drinks Priorities to Create Value
Strategic Soft Drinks Priorities to Volume Breakdown By Country* Create Value Accelerate Be the Best in Win with Our Digital for Industry Win with “Quality” Growth FMCG Execution People Leadership Stakeholders • Revenue Growth • Win at the Point of Sale • Integrated Talent Strategy • Digital transfo
Slide 19: Soft Drinks 2021 Highlights
Soft Drinks 2021 Highlights Volume Breakdown By Country* • Volume growth of 16% in FY Azerbaijan Others • All operations showed growth Iraq 4% 9% 5% Turkey • Turkey volume up 14% Kazakhstan 12% 42% • Coca-Cola grew 15% 28% • Sparkling category growth of 12% Pakistan • Still category grew 22% • Inter
Slide 20: Financial Overview
FINANCIAL OVERVIEW ANADOLU EFES
Slide 21: Anadolu Efes Solid Results from Top to Bottom
Solid Results from Top to Bottom NET REVENUE* EBITDA BNRI % NET INCOME FREE CASH FLOW Anadolu Efes 4Q FY 4Q FY 4Q FY 4Q FY +70.8% +46.9% 17.2% 17.9% -TL198 mn TL1,068 mn TL15 mn TL4,263 mn (-173 bps) (-119 bps) (-TL 102 mn) (+TL 1,251 mn) • Solid volume performance • Gross margin pressure due to • H
Slide 22: Financials
Financials Anadolu Efes Beer Group mTL mTL 4Q2021 Change FY2021 Change 4Q2021 Change FY2021 Change Sales Revenue 10,962 +70.8% 39,296 +46.9% Sales Revenue 5,398 +66.9% 17,368 +40.6% Gross Profit 3,915 +61.9% 14,154 +42.3% Gross Profit 1,980 +53.2% 6,435 +31.9% EBITDA (BNRI) 1,883 +55.1% 7,024 +37.8%
Slide 23: Profitability & Free Cash Flow Development
Profitability & Free Cash Flow Development Beer Group EBITDA (BNRI) Bridge Free Cash Flow Bridge mTL mTL +133 +40% +22% +30% Strong cash 583 532 975 748 725 +17% generation 697 180 264 240 274 25 fueled by higher 106 operating profit 4Q2020 4Q2021 4Q2020 4Q2021 +965 & superior +20% +18% +25% 953 1,3
Slide 24: Balance Sheet & Risk Management
Balance Sheet & Risk Management Beer Group Hedges: Anadolu Efes Cash Profile Debt Profile Commodity: 18% 25% TL 10.3 bn Aluminum: 64% Healthy ($0.8 bn) TL 21.3 bn ($1.6 bn) 75%* PET/Resin: 95% Leverage Ratios 82%* Barley: 82% with extended *hard currency Average maturity: 3.1 years Net Debt/EBITDA:
Slide 25: Financial Priorities for 2022
Financial Priorities for 2022 Profitability Balance Sheet Risk Free Cash Flow Management Management Ensure necessary Maintain leverage Manage FX and Ensure strong Free pricing to mitigate ratios at healthy levels commodity price Cash Flow generation cost pressures volatilities through through discip
Slide 26: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES
Slide 27: Capital Allocation Priorities
Capital Allocation Priorities Leverage inorganic Maintaining a healthy growth opportunities balance sheet by keeping Net Debt / Penetrate and expand EBITDA between 1.0x – into new geographies 2.0x through exports Invest in brands, Maximizing innovation, product shareholder value diversification, thr
Slide 28: Sustainable Shareholder Return
Sustainable Shareholder Return Sustainable Free Cash Flow Generation Leading to High Dividend Yields* Anadolu Efes 8.3% 7.7% 6.3% 4,263 TL 1.93 TL 1.77 1.85 CAGR 3,012 mTL 36% 2,335 2.4% 2.0% 1.8% 1.3% 1.4% 1,315 1,030 1,054 TL 0.46 TL 0.51 TL 0.42 501 638 TL 0.25 TL 0.25 2014 2015 2016 2017 2018 20
Slide 29: FY2022 Outlook
FR > —_ [o} a <x Zz < EFES FY2022 OUTLOOK i Ney
Slide 30: FY2022 Performance Resilient Despite Headwinds
FY2022 Performance Resilient Despite Headwinds Outlook ANADOLU EFES BEER GROUP SOFT DRINKS GROUP Mid-single digit growth Mid-single digit decline High-single-digit to low-teens VOLUME Solid(low-single volume performance digit on a proforma basis) growth (mid-single digit on a proforma basis) support
Slide 31: Sustainability
SUSTAINABILITY
Slide 32: Our Commitments – Road to 2030
Our Commitments – Road to 2030 ESG PRIORITIES GOALS Targeting Zero • Become carbon neutral in all our operations by 2030 • Become a certified zero-waste beer producer by 2030 for the environment • Continue to reduce plastic usage Increasing • Our Focus Areas: Culture & art, local development & women
Slide 33: Thank You
ANADOLU EFES THANK YOU