East African Breweries Plc · NSEKE:EABL
East African Breweries — FY2024 Earnings Presentation
38 slides from East African Breweries's earnings presentation, July 2024
Slide 1: F24 FY Results
F24 FY RESULTS July 2024
Slide 2: Agenda
Agenda
Slide 3: Macro environment has shown signs of recovery in the last quarter
MACRO ENVIRONMENT HAS SHOWN SIGNS OF RECOVERY IN THE LAST QUARTER eabl: GDP Growth (%) Inflation (%) HM 20234 HM 2023 H2 MM 2024 ME 2024.01 5.5% 5 O04 a8 oe 5.0% 55% I 2024 a2 6.9% 6 30% 4.9% 3.2% 30% ' 0% 30% 36% 3.2% 3.1% Kenya Uganda Tanzania Kenya Uganda Tanzania Currency (US$; % Spot vs June ‘2
Slide 4: Disruptions to our operating environment
DISRUPTIONS TO OUR OPERATING ENVIRONMENT Climate change Unpredictable tax policy Social unrest NATIONAL BUDGET EI Nino rains impacting operations Government debt impacting policy Tensions disrupting operations Inflation impact of Kes 8bn
Slide 5: Consumer behaviour impacted by the macro environment
CONSUMER BEHAVIOUR IMPACTED BY THE MACRO ENVIRONMENT eabl’ Spend reprioritisation Lower purchasing power Exploration and Novelty JOHNNIE WALKER Alcohol share of wallet dropping by 2% vs Aug ‘23 Earnings growth slower than inflation impacting Desire to expand horizons and experiment more discretionar
Slide 6: Category and channel shifts
CATEGORY AND CHANNEL SHIFTS Category Channel * Industry growing with Beer the majority and Spirits growing faster * On trade dominant * Premium and value growing while mainstream is constrained * Offtrade and emerging channels continuing to grow
Slide 7: Our strategy
OUR STRATEGY eabl eabl To create the best performing, most trusted and respected consumer products company in Africa Explode Mainstream Spirits Win in Shape New Premium Frontiers Aspirational and Accessible Innovations Digital Transformation Route to Reputation, Supply Footprint Efficient Growth Con
Slide 8: Our performance at a glance
OUR PERFORMANCE AT A GLANCE eablé Volume Net Sales 7 41% — | +13% oP DPS (KES) (before FX) J+10% 7 7.00
Slide 9: Strong growth achieved over time
STRONG GROWTH ACHIEVED OVER TIME eabl NSV (KES bn), FY “WS a ! 109.4 109.6 86.0 THE 74.9 SINGLETON. Singh Malt Seah Whisky FRUITY DE&< FI9 F20 F21 F22 F23 F24
Slide 10: All markets in growth
ALL MARKETS INGROWTH NSV Growth (% YoY) ]+12% 21% of total EABL 1+15% 65% of total EABL T +9% 14% of total EABL
Slide 11: Vibrant Beer: great portfolio as a competitive advantage
VIBRANT BEER: GREAT PORTFOLIO AS A COMPETITIVE ADVANTAGE eabl’ Growth vs F23 T +12%
Slide 12: Explode Mainstream Spirits: great portfolio as a competitive advantage
EXPLODE MAINSTREAM SPIRITS: GREAT PORTFOLIO AS A COMPETITIVE ADVANTAGE eabl® Growth vs F23 } +10% HONOURTHESTREETS: \ ; THE SPIRIT OF UG % LEMONADE? 2 SPICE spceow,
Slide 13: Win in Premium: growth vs F23
Growth vs F23 JOHNNSE WALKER T +13% BLACK LABEL
Slide 14: Shape New Frontiers: great portfolio as a competitive advantage
SHAPE NEW FRONTIERS: GREAT PORTFOLIO AS A COMPETITIVE ADVANTAGE eabl® Growth vs F23 7 +36% ENJOY CRISP
Slide 15: Disruptive innovations fueling future growth
DISRUPTIVE INNOVATIONS FUELING FUTURE TBA GROWTH ea bl: Win in Premium Vibrant Beer Explode Mainstream
Slide 16: Home of Kenya's finest
mes HOME OF KENYA’S FINEST C
Slide 17: Advantaged RtC, Winning at the Point of Sale, Building Emerging Channels
Advantaged RtC Winning at the Point of Sale Building Emerging Channels IES” Tae
Slide 18: Digitally led to deliver availability at scale and brand building efficiency
DIGITALLY LED TO DELIVER AVAILABILITY AT SCALE AND BRAND BUILDING EFFICIENCY B2B Brand Building B2C DIAGEO | vane = IN 20 ate
Slide 19: Making a positive impact through our ESG strategy
MAKING A POSITIVE IMPACT THROUGH OUR ESG STRATEGY; SOCIETY 2030: SPIRIT OF PROGRESS e Q bl: Environmental (E) Social (S) Governance (G) UGANDA biomass S BREWERIES STEAM pLanT
Slide 20: Diverse workforce that is highly engaged
DIVERSEWORKFORCE THAT IS HIGHLY ENGAGED eabl® High performance Culture and Engagement Talent and Capability ‘THE EABLCULTURECODEIS: BOLD CON NECTED
Slide 21: Awards
Oyster rs -_ seinkEonatz 4° AWARDS mployer awards in KE an * Marketing awards in KE and UG * CRand Sustainability awards in KE and UG * Legal awards in KE * Supply awards in KE and UG * 1&D Award in UG ‘ eh ardsGala2023— ee
Slide 22: Agenda: Financial Review
Agenda Financial Review
Slide 23: Strong delivery across key metrics
STRONG DELIVERY ACROSS KEY METRICS e€0 bI & Net Sales EBIT T+13% = | 43% FCF Total Debt J+15Bn | -11Bn
Slide 24: Income statement
Net Sales Cost of Sales Gross Profit Expenses Operating Profit (before Fx) Fx EBIT Net Finance Cost Profit Before Tax Income Tax Profit After Tax Attributable to: Equity holders Minorities Earnings per Share 124.1 (70.3) 53.8 (25.0) 28.8 (3.9) 24.9 (8.2) 16.8 (5.9) 10.9 8.2 27 10.3 109.6 (62.2) 47.4
Slide 25: Reported vs constant currency performance
REPORTED VS CONSTANT CURRENCY PERFORMANCE ea bl: | +12% | UGX appreciation vs Kes +11% +15% +15% TZS appreciation vs Kes +5% Currency appreciation: Cumulative Weighted Average Rates, 12months
Slide 26: Operating profit (before FX) bridge
+10% (+2.5) 13.2 -8.1 -0.6 2.0 28.8 26.3 -3.9 -3.9 16.7 -8.2 OP Volume Price COGS Mix Expenses OP FX Finance PBT (before FX) (before FX) Costs F24 FY F23 FY F24 FY
Slide 27: Investing in our brands
INVESTING INOUR BRANDS Kes bn +15% 7 25.0 ' 1 One-off release 1 1 1 1 in F23 Base 1 Kes763M ss} FY 23 Selling & Admin Other Expenses Translation FY 24 Distribution (before translation) Impact* % Growth 10% 8% “Translation impact of foreign subsidiaries
Slide 28: Continued currency volatility
CONTINUED CURRENCY VOLATILITY Vs USD HM Kenya Ml Uganda Ml Tanzania 1% 0% 7% 7% 13% -23% H1 H2 Currency appreciation/ depreciation: Cumulative Weighted Average Rate, 12months
Slide 29: Debt reduction cushioning impact of rising interest rates
DEBT REDUCTION CUSHIONING IMPACT OF RISING INTEREST RATES eablé 59bn Mi Total Debt —¢— Effective cost of total debt F22 P12 F23 PI2 FY24 P12 Till 9.0% 12.7% 16.8% Net Debt/ 1.05 1.63 117 EBITDA
Slide 30: Strengthened balance sheet
STRENGTHENED BALANCE SHEET eabl: Current Assets Current Liabilities {increase Hi Decrease FY23 Cash Stocks Debtors Income FY 24 FY.23 Creditors Bank BorrowingsDividends FY 24 tax OD Non-Current Assets Non-Current Liabilities FY 23 Capex Depreciation FX FY 24 FY 23 Borrowings Deferred Investment inco
Slide 31: Balance sheet ratios improving
BALANCE SHEET RATIOS IMPROVING Net Debt/EBITDA Current Ratio ROCE 115 (Board Target: <1.5) (CMA: >1x) FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24
Slide 32: Cash flow bridge
1.6 33.0 -8.0 -4.5 -7.3 10.8 9.0 -11.9 -1.2 As at start Cash from Changes in Net interest paid Income tax paid Net cash used Net cash used Foreign Cash and cash of year operations before working capital in investing in financing exchange impact equivalents at working capital activities activities on
Slide 33: Prioritised capex spend
PRIORITISED CAPEX SPEND Capex Spend, KES bn — Capex % NSV
Slide 34: Agenda: Looking Ahead
ID. Agenda Looking Ahead
Slide 35: F25 priorities
F25 PRIORITIES Consumer Centricity Continued Growth Smart Investments Society 2030
Slide 36: Q&A
Slide 37: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This document contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express fo
Slide 38: eabl:
eabl: CELEBRATING LIFE
East African Breweries — FY2024 Earnings Presentation on 6ix