Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (May 2013)
60 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, May 14, 2013
Slide 1: Anadolu Efes Investor Presentation
ANADOLU EFES Investor Presentation ANADOLU EFES
Slide 2: Forward-Looking Statements
Forward-Looking Statements • According to the Shareholder’s Agreement regarding the governance of Coca-Cola İçecek A.Ş. (“CCI”), with effect from 01.01.2013, Anadolu Efes started to fully consolidate CCI, whereas CCI has been consolidated into Anadolu Efes’ financial results by using proportionate c
Slide 3: Anadolu Efes – A Regional Beverage Powerhouse
Anadolu Efes – A Regional Beverage Powerhouse Beer Business FOCUS IN TURKEY & CIS 18* breweries in 6* Countries 43.7 mhl* Beer Capacity 7 malteries with 293,656 tons Malt Capacity Coca-Cola Business FOCUS IN TURKEY, CENTRAL ASIA & MIDDLE EAST 22 bottling plants in 10 countries 1,198 million unit cas
Slide 4: Anadolu Efes' Structure
Anadolu Efes’ Structure SABMiller Harmony Ltd. 24.0% Yazıcılar Holding 23.6% Özilhan Sınai Yatırım 13.5% Anadolu Endüstri Holding 6.0% Public 33.0% ANADOLU EFES 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS 25.6% COCA-COLA İÇECEK1 TURKEY BEER OPERATIONS Public (CCI) INTERNATIONAL BEER OPERATIONS COCA-
Slide 5: Rapidly Growing Beverage Company
Rapidly Growing Beverage Company 716 m 601 m 612 m 494 m 511 m 306 m 327 m 297 m 36 36 36 36 40 25 27 27 11 11 12 15 15 15 15 16 2005 2006 2007 2008 2009 2010 2011 2012 # of Countries # of Plants Population Served 5
Slide 6: Operating Markets
Operating Markets TURKEY RUSSIA KAZAKHSTAN Pop: 75.6 mn* Pop: 141.9 mn Pop: 16.7 mn GDP per cap: $10,412* GDP per cap: $13,765 GDP per cap: $12,021 MOLDOVA GEORGIA UKRAINE Pop: 3.6 mn Pop: 4.5 mn Pop: 45.4 mn GDP per cap: $2,136 GDP per cap: $3,514 GDP per cap: $3,971 AZERBAIJAN PAKISTAN KYRGYZSTAN
Slide 7: Consolidated Sales Volume Development
Consolidated Sales Volume Development CAGR (07-12) 9% 52.7 43.2 44.8 37.8 38.9 34.6 mhl 15.5 16.2 16.2 5.2 2007 2008 2009 2010 2011 2012 1Q2012 1Q2013 1Q2012 1Q2013 Reported Restated Reported Proforma Beer Soft Drinks Breakdown of Sales Volume*- 1Q2013 Reported (Reported) International Turkey Beer B
Slide 8: Consolidated Financial Performance: Net Sales Revenue
Consolidated Financial Performance Consolidated Net Sales Revenue ’07-’12 CAGR 16% 6,416.8 million TRL 4,761.3 4,168.8 3,668.9 3,811.1 3,030.4 1,698.1 1,650.8 1,698.1 772.6 2007 2008 2009 2010 2011 2012 1Q2012 1Q2013 1Q2012 1Q2013 Reported Restated Reported Proforma Breakdown of Net Sales Revenue*-1
Slide 9: Consolidated EBITDA (BNRI)
Consolidated Financial Performance ’07-’12 Consolidated EBITDA(BNRI)* CAGR 12%23.9% 23.3% 24.1% 24.4% 20.0% 20.2% 20.5% 23.9% 24.1% 24.4% 13.1% 23.3% 20.5% 5.9%16.7% 4.3% 20.0% 20.2% 13.1% 13.1% million TRL 1,295.9 1,019.0 916.6 953.4 854.7 723.2 222.2 274.9 158.5 222.2 2007 2008 2009 2010 2011 2012
Slide 10: Net Financial Indebtedness
Net Financial Indebtedness Net Debt/EBITDA* 1.4 x 0.7 x 1.8 x 1.4 x Gross Debt 704.7 273.9 1,036.5 2,017.0 Cash Position 300.1 112.7 282.9 700.1 1,316.9 753.6 million USD 404.6 161.1 Turkey Beer EBI CCI** Anadolu Efes Consolidated * Proforma EBITDA(BNRI) is used for Anadolu Efes, EBI and CCI 10
Slide 11: Debt Maturity & Currency Breakdown
Debt Maturity & Currency Breakdown TURKEY BEER EBI CCI 2016 2015 0.3% 2015 4% 2% 2013 2013 13% 2014 2016+ 20% 2014 13% 16% 30% 2015 4% 2014 2018+ 76% 2013 70% 52% Other Other 9% EUR 10% 6% USD 100% USD USD 84% 91% 11 Numbers may not add up to 100 due to rounding. Numbers may not add up to 100 due to
Slide 12: Beer Operations
Beer Operations ANADOLU EFES
Slide 13: Advantageous Position In A Geography With Strong Growth Potential
Benefiting From Advantageous Position In A Geography Highlighted With Strong Growth Potential Why this geography? Large population ( ~660 million people) Room to develop per capita consumption levels Developing economies & rising disposable incomes Trends supporting beer consumption like wes
Slide 14: Managing Diversity is the Key to Success
Managing Diversity is the Key to Success TURKEY RUSSIA 1 lt Pure Alcohol Consumption per Capita* 18 lt 59 % Beer Share in Total Pure Alcohol Consumption* 38 % 13 lt Beer Consumption per Capita** 71 lt 83 %*** Market Share 16 %**** High Advertising Restrictions High * Euromonitor figures represent 20
Slide 15: Per Capita Beer Consumption in Operating Markets
Per Capita Beer Consumption in Operating Markets & in Some Selected Countries 11.0% Georgia 8.0% China CAGR Growth 2007 - 2012 (%) 5.0% Turkey 2.0% Poland Moldova -1.0% 0 20 40 60 80 100 120 140 160 Uzbekistan Ukraine Russia West Europe Bulgaria Romania Germany Czech Republic -4.0% Greece Kazakhstan
Slide 16: Breakdown Of Pure Alcohol Consumption
Breakdown Of Pure Alcohol Consumption 100% 14% 14% 17% 90% 20% 22% 19% 26% 25% 24% 33% 80% 38% 51% 70% 20% 25% 38% 47% 21% 30% 41% 9% 60% 34% 10% 36% 50% 12% 40% 30% 60% 58% 53% 56% 48% 48% 51% 20% 42% 43% 39% 39% 37% 10% 0% Austria Czech Rep. Denmark Finland Germany Ireland Netherlands Poland Spain
Slide 17: Turkey Beer Operations
Turkey Beer Operations ANADOLU EFES
Slide 18: Developments in Turkey Beer Operations
Developments in Turkey Beer Operations Sustainable Volume Performance* ’07-’12 In Turkey beer operations, total sales CAGR 3% volume declined by 10.3% in 1Q2013 vs. 8.5 8.5 7.6 8.5 8.4 8.6 1Q2012 1.8 1.6 This volume decline was mainly due to: 2007 2008 2009 2010 2011 2012 1Q2012 1Q2013 High bas
Slide 19: Exponential Rise In Excise Tax For Beer In Turkey
Exponential Rise In Excise Tax For Beer In Turkey In The Last Few Years Exponential rise in excise tax in Turkey ... 0.62 0.63 0.53 0.44 0.26 0.24 0.24 0.24 0.24 0.15 0.16 0.072 Before 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 01/2013 Oct. 03 69.2% *Excise tax for beer per one degree of alco
Slide 20: Beer Excise Tax Almost 4x Of European Average
Now Beer Excise Tax is Almost 4x Of The European Average... TURKEY 0.27 0.27 0.23 0.22 0.14 0.13 0.13 0.13 0.12 0.09 0.067 0.069 0.069 0.061 0.057 0.058 0.059 0.061 0.063 0.063 EU 2004 2005 2006 2007 2008 2009 2010 2011 2012 01/2013 Average *per one degree of alcohol (EUR) Source: European Commissio
Slide 21: Resilient Volume Performance Despite Price Increases
... But Resilient Volume Performance Despite Significant Price Increases Despite significant price increases to reflect excise tax hikes, we were able to maintain our volumes Shelf price rose further to 3.8TRL as of January 2013... 9.2 8.5 8.5 8.5 8.4 8.6 4 8.2 7.6 3.5 50 cl returnable bottle price
Slide 22: Strategic Initiatives To Generate Volume Growth
Because Of The Strategic Initiatives Implemented To Generate Volume Growth... Increasing the number of beer selling outlets... Strategic initiatives to increase Developing places not just for availability, visibility and beer consumption but for the perception of beer enjoyment of beer... Increase t
Slide 23: Limited Availability Of Beer In Off-Premise Channel
Limited Availability Of Beer In Off-Premise Channel Number of beer selling outlets per 1,000 people Source: The Company 23
Slide 24: Increasing The Relevance Of Beer
The Third Element: Increasing The Relevance Of Beer Through a portfolio for all occasions... Economy Premium 2% 3% 100% brand awareness for Efes Exports to more than 70 countries # 1 in consumer spending in Food & Mainstream 95% Beverage category – 7.7% as of January-March 2013 (Nielsen) 99.7% penet
Slide 25: Turkish Beer Market – Fundamentals & Dynamics
Turkish Beer Market – Fundamentals & Dynamics Sales Volume by Consumption Channel (2012) DYNAMICS OF THE TURKISH BEER MARKET Key account 15.2% On-Premise Consolidated market - top 2 players represent 23.2% more than 99% of the market lack of sizeable acquisition targets Off-premise consolidated
Slide 26: Unmatched Brand Equity
Unmatched Brand Equity TURKEY Top Brands – % of spending Total Trade % Food & Beverage % 1. Winston (tobacco) 6.8 1. EFES PİLSEN 7.7 2. Parliament (tobacco) 5.1 2. Eti 4.3 Source: Nielsen YTD Marc h 2013 3. Marlboro (tobacco) 4.6 3. Yeni Rakı 3.5 4. Lark (tobacco) 4.4 4. Ülker 3.4 5. EFES PILSEN 3.5
Slide 27: Turkish Beer Market – Vertical Integration
Turkish Beer Market – Vertical Integration TWO MALTERIES 100% self sufficiency ANADOLU EFES Long Standing Relationships Malt + Hops ONE HOPS FACILITY •Patented barley seeds •Malting Barley at partly self sufficient •Fertilizer a pre-determined •Technology & know-how price Brewery & Capacity FARMERS
Slide 28: Turkey Beer Operations' Financial Performance
Turkey Beer Operations’ Financial Performance Net Sales Revenue EBITDA* ’07-’12 ’07-’12 CAGR 7% 40.3% 41.8% 39.8% 40.1% CAGR 11% 37.4% 34.3% 34.9% Million TRL 1,604.7 28.8% Million TRL 1,182.1 1,390.8 494.2 1,264.2 1,293.4 550.5 503.0 519.1 519.9 967.0 389.8 337.2 354.4 117.6 102.1 2007 2008 2009 20
Slide 29: International Beer Operations
International Beer Operations ANADOLU EFES
Slide 30: Developments In International Operations
Developments In International Operations Volume Development ’07-’12 19.8 CAGR 8% 15.7 14.6 13.3 14.1 13.6 3.4 4.3 3.3 3.3 2007 2008 2009 2010 2011 2012 1Q2012 1Q2013 1Q2012 1Q2013 Reported Proforma Lower volumes in 1Q2013 vs 1Q2012 was mainly driven by weaker volumes in Russia, where our performance
Slide 31: Volume Development In Russia
Volume Development In Russia Market Share by Volume – 1Q2012 Market Share by Volume – 1Q2013 th. inhab) Retail YTD March 2012 Nielsen, National Urban Russia (over 10 th. inhab) Retail YTD March 2013 Nielsen, National Urban Russia (over 10 Others Carlsberg Others 17.6% 36.1% 19.6% Carlsberg EFES Rus
Slide 32: The Need For A Strategic Partner In Russia
Others 14.7% Carlsberg 10.9% The Need For A Strategic Partner In Russia... EFES RUSSIA 37.4% SABMILLER 7.2% Heineken Inbev 11.7% 16.4% Challenge in Russia to have a critical mass... Others 12.7% Others 14.7% EFES RUSSIA 8.8% Carlsberg Carlsberg 37.4% EFES RUSSIA 37.4% SABMILLER 10.9% 6.8% SABMILLER
Slide 33: SABMiller: The Best Possible Partner in Russia
SABMiller: The Best Possible Partner in Russia Logistic & Geographical Synergies Sales Force Synergies Synergies Enlarged Cross brewing geographical reach opportunities in production Advantages due to Complementary Achieve higher existing common Brand Portfolio distributors for both penetrat
Slide 34: Acquisition of SABMiller Beer Operations
Acquisition of SABMiller Beer Operations Total international beer capacity rose from 25.2 mhl to 33.3 mhl following the acquisition of 4 Breweries from SABMiller 34
Slide 35: More Balanced Contribution of International Operations
A More Balanced Contribution of International Operations In Consolidated Results VOLUME REVENUE EBITDA (BNRI) TOTAL BEER – FY2011 EBI reported figures* 31% Turkey Turkey 37% EBI 46% EBI Turkey 54% 63% 69% TOTAL BEER –FY2012 operating proforma figures** EBI Turkey 47% Turkey 36% 29% EBI Turkey 64% 53
Slide 36: Improved Profitability For International Beer Operations
With An Improved Profitability For Our International Beer Operations $/HL 76.5 66.7 46% 42% 17% 15% NET SALES GROSS PROFIT EBITDA (BNRI) MARGIN MARGIN 2011 reported 2012 proforma 36
Slide 37: A More Balanced Portfolio in Russia
A More Balanced Porfolio in Russia Combined Russian business with a highly attractive, valuable and balanced portfolio of international and local brands across key market segments... PREMIUM UPPER MAINSTR. LOWER MAINSTR. Before acquisition of SAB Russia Current Brand Portfolio 37
Slide 38: Integration In Russia; Our Challenge and Opportunities
Integration In Russia; Our Challenge and Opportunities 1+1 = 2 + $120MILLION* 38 *To be achieved in full in the third year of the deal.
Slide 39: Strongly Positioned in All Markets
Strongly Positioned in All Markets SUPER PREMIUM PREMIUM UPPER MAINSTREAM LOWER MAINSTREAM ECONOMY Kazakhstan SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Ukraine SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Moldova SUPER PREMIUM PREMIUM MAINSTREAM Georgia 39
Slide 40: Russian Beer Market – Fundamentals & Dynamics
Russian Beer Market – Fundamentals & Dynamics Off-Premise Outlet Split (2012) Packaging Split (2012) Open Markets 2% Keg 3% Hyper/ Supermarkets 17% Can 18% Kiosks 12% Food Stores 45% Superettes PET 47% 18% Glass Bottle Pavillions 33% Source: Nielsen 6% Hops Processing Numbers may not add up to 100 d
Slide 41: Other Operating Countries
Other Operating Countries Market Share by Volume Shymkent Pivo InBev 4.1% 0.8% Other 8.3% #4 brewer Kazakhstan Carlsberg Ukraine 28.0% EBI Capacity: 2.3 mhl 59.6% EBI entered the Ukranian beer market following the acquisition of the SABMiller’s Ukrainian beer Nielsen , YTD March 2013 operations in M
Slide 42: International Beer Operations Financial Performance
International Beer Operations Financial Performance Net Sales Revenue EBITDA (BNRI)* ’07-’12 ’07-’12 CAGR 12% CAGR 10% 18.7% 14.8% 19.8% 21.9% 14.7% 16.5% 14.5% 11.7% million USD million USD 0.8% 0.8% 1,505.9 248.3 213.7 1,038.0 976.8 156.0 836.2 857.3 976.0 153.5 170.1 143.0 321.1 237.9 46.6 241.9
Slide 43: Beer Operations' 2013 Outlook
Beer Operations’ 2013 Outlook ANADOLU EFES
Slide 44: Beer Operations' FY2013 Outlook
BEER OPERATIONS’ FY2013 OUTLOOK Current trend of the beer markets in Turkey and Russia are behind the ones on which our full year guidance was based on; In Turkey, our first quarter results were slightly below our estimates due to the adverse market conditions also affected by competitive pressure
Slide 45: Soft Drink Operations
Soft Drink Operations ANADOLU EFES
Slide 46: Soft Drinks Business - Operating Geography
Soft Drinks Business - Operating Geography Russia 10 countries 22 production facilities Kazakhstan Kyrgyzstan Azerbaijan Uzbekistan China Turkey Turkmenistan Tajikistan Iran Syria Iraq Jordan Pakistan India Egypt S.Arabia U.A.E. 46
Slide 47: Future Opportunities
2012 PerCap Consumption (lt) Future Opportunities Source: CCI and United Nations Median Age CCI territory total population: over 360 million 47
Slide 48: Country Data
Country Data % of Per capita CCI’s market Population GDP per capita consumption share in CCI’s 2012 population (mn) in in 2012 of sparkling sparkling Volume below 30 2012 (2) ($) (2) bev. (L) in 2012 bev. in 2012 Breakdown years (3) (4) (5) Turkey 75.6(1) 51% 10,412 45 67% 66.8% Pakistan 178.9 64% 1
Slide 49: Geographic and Category Split of Business
Geographic and Category Split of Business Volume split (uc) – International Operations 1Q13 1Q2013 Kazakhstan 20% Kyrgyzstan 3% Azerbaijan Turkey Pakistan 40% 6% Turkmenistan 5% Jordan 3% Syria 0% Iraq Tajikistan 22% 0% Volume split (uc) – Consolidated 1Q2013 Tea 11% Still 22% Sparkling 67% 49
Slide 50: Dynamic Growth in All Markets
Dynamic Growth in All Markets TURKEY SOFT DRINKS VOLUME DEVELOPMENT ’07-’12 CAGR 8% 568.5 546.8 494.4 382.4 420.8 438.9 mu/c 108.0 116.1 2007 2008 2009 2010 2011 2012 1Q2012 1Q2013 Restated Reported INTERNATIONAL SOFT DRINKS VOLUME DEVELOPMENT ’07-’12 CAGR 24% 282.0 215.0 171.0 mu/c 147.6 97.9 113.0
Slide 51: Leading Brands and Market Positions
Leading Brands and Market Positions Source: Nielsen, 2012 51 * Market share numbers are restated due to a change in forecasting universe
Slide 52: Soft Drink Operations' Financial Performance
Soft Drink Operations’ Financial Performance* Net Sales Revenue EBITDA* ’07-’12 ’07-’12 CAGR 16% CAGR 16% 17.1% 16.6% 15.3% 15.8% 14.3% 16.6% million TRL million TRL 13.1% 14.1% 14.1% 11.2% 4,132.4 685.5 3,408.6 2,258.1 2,407.5 2,753.2 486.9 375.3 1,925.9 329.8 435.0 368.7 917.3 917.3 736.6 129.8 63
Slide 53: Anadolu
ANADOLU
Slide 54: Appendix
Appendix ANADOLU EFES
Slide 55: Consolidated Income Statements
ANADOLU EFES Consolidated Income Statements For the Three-Month Period Ended 31.03.2012 and 31.03.2013 Prepared in accordance with IFRS as per CMB Regulations (million TRL) 2012/3 2013/3 restated reported SALES VOLUME (million hectoliters) 5.2 16.2 SALES 772.6 1,698.1 Cost of Sales (-) (365.3) (964.
Slide 56: Consolidated Balance Sheets
ANADOLU EFES Consolidated Balance Sheets as of 31.03.2013 and 31.12.2012 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/12 2013/3 2012/12 2013/3 restated reported restated reported Cash & Cash Equivalents 1,394.6 1,027.6 Short-term Borrowings 749.7 2,013.5 Financial Inves
Slide 57: Turkey Beer Operations
TURKEY BEER OPERATIONS Highlighted Income Statement Items For the Three-Month Period Ended 31.03.2012 and 31.03.2013 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/3 2013/3 Sales Volume (million hectolitres) 1.8 1.6 SALES 337.2 354.4 GROSS PROFIT FROM OPERATIONS 230.7 250
Slide 58: International Beer Operations (EBI)
INTERNATIONAL BEER OPERATIONS (EBI) Highlighted Income Statement Items For the Three-Month Period Ended 31.03.2012 and 31.03.2013 Prepared In Accordance with IFRS (million USD) 2012/3 2013/3 Volume (million hectoliters) 3.4 3.3 NET SALES 241.9 237.9 GROSS PROFIT 100.1 85.1 PROFIT FROM OPERATIONS (BN
Slide 59: Soft Drink Operations (CCI)
SOFT DRINK OPERATIONS (CCI) Highlighted Income Statement Items For the Three-Month Period Ended 31.03.2012 and 31.03.2013 Prepared In Accordance with IFRS as per CMB Regulations (million TRL) 2012/3 2013/3 restated reported Sales Volume(million Unit Case) 136.8 197.7 Sales (net) 631.3 917.3 Cost of
Slide 60: Turkey AFB Market
Turkey AFB Market AFB Market (exc. milk) RTD AFB Market (exc. milk) 5.5 billion uc 1.5 billion uc Tea Sparkling 44.4% Other Water 2.9% 6.7% Sparkling Ayran Beverages 9.9% 38.7% RTD AFB 28.2% Powder&Concentrat e Hot Coffee Fruit 1.6% 2.4% Juices&Still HOD Drinks 23.4% 10.2% Bottled Water 31.5% Source