Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES

Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Q1 2015 Earnings Presentation

40 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, May 2015

  1. Slide 1: Investor Presentation

    ANADOLU EFES Investor Presentation

  2. 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 availabl

  3. Slide 3: A Total Beverage Company Refreshing 662m Consumers

    A Total Beverage Company Refreshing 662m Consumers A world class brand portfolio 16 Operating in markets with growth potential indicated by 11 low per capita consumption levels To a diverse and exciting region with strong GDP growth Through an experienced and financially strong 2005 2014 organisatio

  4. Slide 4: Operating Geography Ownership Structure

    Operating Geography Ownership Structure Refreshing around 660mn consumers in markets with low per capita consumption... ANADOLU GROUP SABMiller Yazıcılar Holding Özilhan Sınai Anadolu Endüstri Harmony Ltd. 24.0% 23.6% Yatırım 13.5% Holding 6.0% Public ANADOLU EFES 33.0% 50.3% BEER OPERATIONS SOFT DR

  5. Slide 5: Strong History Of Growth

    Strong History Of Growth Volume* - FY2014 Revenue* - FY2014 EBITDA*(BNRI)** - FY2014 20% 19% 24% Soft Drinks Soft Drinks Soft Drinks 8% International Beer International Beer International Beer Turkey Beer 60% Turkey Beer 54% 27% Turkey Beer 16% 72% 88.7 85.6 16.5% 17.1% 10,079.1 9,195.8 1,720.9 1,52

  6. Slide 6: Solid FCF generation in a challenging year

    Solid FCF generation in a challenging year Anadolu Efes Consolidated FCF (mnTL) 485.6 479.1 412.7 345.0 172.4 170.5 118.3 118.3 44.6 2010 2011 2012 2013 2014 -137.7 FCF FCF (excl. minority buyouts and other investing activities) 6

  7. Slide 7: Anadolu Efes Dividend History

    Anadolu Efes Dividend History Back to previous dividend yield levels Anadolu Efes Dividend Yield* (%) 2.1% 2.0% 2.0% 1.8% 0.0% 2010 2011 2012 2013 2014 Dividend ___ 0.48 TL 0.45 TL 0.45 TL 0.46 TL Per Share * Dividend Yield = Gross Dividend / Anadolu Efes Year-end Market Capitalization 7

  8. Slide 8: Strategy For Sustainable Value Creation

    Strategy For Sustainable Value Creation Consumer led portfolio strategy-capturing value in soft drinks and beer Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct companies to maintain focus, build capability & support investment In beer marke

  9. Slide 9: Strong Competitive Advantages

    Strong Competitive Advantages Strong Expertise Balanced Strategic regional and Beer and Soft partnership with player know-how in Drink Operations SABM & TCCC powered by driving cost proven local efficiencies know-how 9

  10. Slide 10: 1Q2015 Key Highlights

    1Q2015 Key Highlights Targets over-delivered and consolidated operating performance beat expectations; • 3rd consecutive quarterly growth for Turkey beer • better than expected performance of international beer Volume expectations were beaten by continued focus on innovation and strong brand portfol

  11. Slide 11: Diversified Operational and Geographical Portfolio Mitigates Headwinds

    Diversified Operational and Geographical Portfolio Mitigates Headwinds Consolidated Performance - 1Q2015 Sales Volume Net Sales Revenue EBITDA (BNRI) 14.3% 17.8 12.3% 17.1 2,006.4 1,931.0 -4.0 277.1 % -3.8 247.7 % m TRY m TRY . 8 % mhl -11 1Q2014 1Q2015 1Q2014 1Q2015 1Q2014 1Q2015 9% 19% 73% 18% 20%

  12. Slide 12: Beer Operations

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  13. Slide 13: Leading Brewer in our Region

    Leading Brewer in our Region Europe’s 6th largest and the World’s 11th largest brewer in terms of sales volume* with No.1 position in most of the markets in which we operate * Company estimate 13

  14. Slide 14: Markets with low per capita consumption but high potential

    Markets with low per capita consumption but high potential Per Capita CAGR Growth 2009-2014 (%) 12% GEORGIA 7% CHINA MOLDOVA POLAND 2% BULGARIA 0 UKRAINE ROMANIA 20 40 60 80 100 120 140 160 KAZAKHSTAN GERMANY CZECH REPUBLIC TURKEY GREECE USA -3% SERBIA RUSSIA -8% Per Capita Consumption (lt) Source:

  15. Slide 15: Beer Strategic Framework to create sustainable value

    Beer Strategic Framework to create sustainable value BRANDS Provide choice and innovation to consumers: Grow brand love EXECUTION Excel in customer collaboration, availability and point of sale activation EFFICIENCY Build competitive advantage through lean and efficient operations RELATIONSHIPS Focu

  16. Slide 16: Commitment to Environment

    Commitment to Environment Compared to 2008, Beer Group consumed 22% less water per product in Breweries and 24% less water per product in Malteries The amount of water saved annually is equal to 1,320 olympic size swimming pools Compared to 2008, Beer Group consumed 17% less energy per product in Br

  17. Slide 17: Beer Business Strategic Priorities

    Beer Business Strategic Priorities Brands Execution Efficiency Relationships Drive category growth Drive visible availability Relentlessly drive cost Develop employees & efficiencies business partners as our Broader portfolio Win at point of sales ambassadors Utilize technology more Differentiated p

  18. Slide 18: 1Q2015 Portfolio Expansion in Key Markets

    BRANDS 1Q2015 Portfolio Expansion in Key Markets Focused on occasions and portfolio opportunities in 1Q2015 via new package introductions, flavor extensions and international brands TURKEY Germany’s famous ‘Weißbier’ brand’ Erdinger’ Slim, Sleek & King Cans of ‘Efes Pilsen’ KAZAKHSTAN Affordable Eur

  19. Slide 19: Continued Actions in-line with Beer Group Strategy

    Continued Actions in-line with Beer Group Strategy Efficent, capable and consumer facing operating model Sales force effectiveness EXECUTION Category management Geographical prioritizations Segmented portfolio approach Continued cooler placements to further increase cold availability EFFICIENCY Supp

  20. Slide 20: Turkey - Stronger, Broader Brand Portfolio

    Turkey - Stronger, Broader Brand Portfolio A multi-brand portfolio approach with; local powerhouse brands premium brands foreign brands Revenue management/broader price & packaging alternatives Leaner organization following the rightsizing of operations and cost savings Growth momentum in sales volu

  21. Slide 21: Russia - Well-positioned in the World's Largest Beer Market

    Russia - Well-positioned in the World’s 4 Largest Beer Market th Broader premium portfolio to grow value share New sales operating model & RTM projects Efficient footprint Better than expected performance in the first quarter of 2015 Delayed opportunities due to continued challenges in 2015 21

  22. Slide 22: Solidified Market Position in Russia

    Solidified Market Position in Russia Total beer market declined ca. 10% Russia* in 1Q2015 vs 1Q2014 Market share of Efes Russia increased to 14.0% in 1Q2015 vs 13.9% in 1Q2014 Market Share* Other 24% Other 23% Heineken 12% Heineken 12% In Bev 13% In Bev 13% Carlsberg 38% Carlsberg 37% Volume Share V

  23. Slide 23: Other Operations - Strongly Positioned in CIS Countries

    Other Operations - Strongly Positioned in CIS Countries Challenging period in the region marked with economic, political and industry-specific issues unresolved political issues in Ukraine since 2014 local currency devaluations in 2014 in some operating countries continued risk of further devaluatio

  24. Slide 24: Risks & Strategic Priorities for 2015

    Risks & Strategic Priorities for 2015 Risks Volatilities in the financial markets Commodity price fluctuations Macro/ political/geopolitical issues in the region Priorities Investments in brand equity to continue, fullfilling consumer trends in all operations Continued focus on improving efficiency

  25. Slide 25: Soft Drink Operations

    Soft Drink Operations

  26. Slide 26: CCI at a glance

    CCI at a glance CCI’s Operating Geography Shareholder Structure Operating in one of the world’s most dynamic and exciting markets 20.1% Kazakhstan 25.9% A gateway to Turkey, Kyrgyzstan 3.7% Pakistan, Central Asia AZ Turkey Turkmenistan Tajikistan and The Middle East Syria Iraq Serving more than 370

  27. Slide 27: Capitalizing on favorable demand and demographic drivers

    Capitalizing on favorable demand and demographic drivers Per Cap 180 Consumption (liters) Sparkling Beverage Consumption vs GDP (2014) 150 Mexico USA Argentina 120 Germany Brazil 90 UK Spain South Africa Saudi Arabia Bulgaria 60 Hungary Oman Poland Jordan Iraq Turkey Kazakhstan Greece Turkmenistan R

  28. Slide 28: Soft Drinks Business Strategic Priorities

    Soft Drinks Business Strategic Priorities 1 Accelerate Revenue and Margin Growth 2 Grow Sparkling Category and Per Caps 3 Selectively Expand Profitable Still Portfolio 4 Continue to Build and Enhance our Reputation 5 Build a World Class Organization Winning At The Point of Sales Sales Force Effectiv

  29. Slide 29: … and our focus on turning volume into value…

    … and our focus on turning volume into value… Revenue Strategic Operating Growth Productivity Expenses Procurement Management Management Segmentation Production Sugar Selling, Marketing and Distribution Expenses Water use ratio Availability It water/It product Resin << Cold is sold >> Energy use rat

  30. Slide 30: Strong brand positioning and offering in our key markets…

    Strong brand positioning and offering in our key markets… Turkey Iraq 66% 29% Sparkling #1 Sparkling #2 Juice Water Energy Water 27% 6% #1 #2 Kazakhstan Pakistan 49% 35% Sparkling #1 Sparkling #2 Juice Water Juice Water 8%* 9% 2% 8% #5 #4 #8 #3 Sources: Nielsen Retail Panel, 2013 & Retail Zoom. * Ou

  31. Slide 31: Beer Operations Financials & Outlook

    Beer Operations Financials & Outlook

  32. Slide 32: 1Q2015 Overview - Beer Operations

    1Q2015 Overview - Beer Operations TURKEY OPERATIONS INTERNATIONAL OPERATIONS Volume Revenue Volume Revenue Volume growth continued for the Outperform volume growth due to; International operations delivered Revenues declined due to volume 3rd consecutive quarter Positive mix better than expected res

  33. Slide 33: 1Q2015 Overview - Soft Drink Operations

    1Q2015 Overview - Soft Drink Operations TURKEY OPERATIONS INTERNATIONAL OPERATIONS Volume Revenue Volume Revenue Sparkling - 8.3% contraction Net revenue per case - up 10.9% Up by 4.8% Net revenue per case - down 7.2% Still, excl. water - 3.4% up improved promotion management Challenging macroeconom

  34. Slide 34: 2015 Outlook

    2015 Outlook BEER OPERATIONS ON A CONSOLIDATED BASIS Turkey Beer Market - low-single digit growth Sales volumes - low-to-mid single digit growth Russian Beer Market - a higher decline than that in 2014 Sales revenue growth > volume growth Efes Turkey Volume - in line with the market Efes Russia Volu

  35. Slide 35: Turkey Beer Financial Performance

    Turkey Beer Financial Performance Volume Revenue CAG R -3 4.7 % .8% AG R C 1,627.7 million TRL 8.5 1,517.5 mhl 7.3 1,264.2 7.1 7.3% -3.2 1.8% 10.9% % 339.8 1.5 1.5 306.3 2009 2013 2014 1Q2014 1Q2015 2009 2013 2014 1Q2014 1Q2015 * Sales volume including exports EBITDA 27.7% 29.7% CAG R -4 .4% million

  36. Slide 36: International Beer Financial Performance

    International Beer Financial Performance Volume Revenue 7.6% 1 1 .0% R R CAG CAG million USD 1,300.5 18.2 1,118.4 mhl 17.4 13.6 -12. 857.3 -14.0 -36 -4.8 3% .8% % % 3.7 248.2 3.2 156.8 2009 2013 2014 1Q2014 1Q2015 2009 2013 2014 1Q2014 1Q2015 Restated EBITDA (BNRI) CAG R -4 million USD .7% 5.7% 3.8%

  37. Slide 37: Soft Drinks Financial Performance

    Soft Drinks Financial Performance R6 .9% 4.6% R3 International Volume CAG CAG 552.8 573.6 577.9 484.2 Turkey Volume mu/c mu/c 438.9 0.7% -8.0% 14.2% 4.8% 124.5 99.1 103.9 114.5 147.6 2009 2013 2014 1Q2014 1Q2015 2009 2013 2014 1Q2014 1Q2015 R21.2% million TRL CAG 5,985.4 Revenue 5,186.4 15.4% 4.8% 2

  38. Slide 38: Balance Sheet Flexibility

    Balance Sheet Flexibility Anadolu Efes Consolidated Beer Group 2.2 Net Leverage 2.1 2.0 Ratio 1.6 times 1Q2014 1Q2015 1Q2014 1Q2015 million TRL 1Q2014 1Q2015 million TRL 1Q2014 1Q2015 Total Financial Debt 4,743 5,046 Total Financial Debt 2,134 2,064 Total Cash & Equivalents 1,543 1,460 Total Cash &

  39. Slide 39: Borrowing Mix & Balanced Amortization Schedule

    Borrowing Mix & Balanced Amortization Schedule 0% 0% 5% 7% 1% 14% 19% 0.4% Breakdown 7% 8% Currency 87% 85% 86% 81% 1Q2014 1Q2015 1Q2014 1Q2015 USD EUR TL PKR OTHER USD EUR 622 500 500 375 Schedule Maturity million USD 133 123 120 99 109 55 34 43 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Be

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