Coca-cola Icecek A.s. · BIST:CCOLA
Coca-cola Icecek A.s — Investor Presentation (March 2015)
33 slides from Coca-cola Icecek A.s's investor presentation, March 2015
Slide 1: Investor Presentation
Investor Presentation
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: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 4: CCI at a glance
CCI at a glance Operating in one of the world’s Kazakhstan most dynamic and exciting Kyrgyzstan AZ Turkey Turkmenistan Tajikistan markets Syria Iraq Jordan Pakistan A gateway to Turkey, Pakistan, Central Asia and The Middle Shareholder Structure East Public Held (3) Anadolu Serving more than 370 mil
Slide 5: We are capitalizing on favorable demand and demographic drivers
We are capitalizing on favorable demand and demographic drivers… Per cap 180 Sparkling Beverage Consumption vs GDP (2014) consumption (liters) 150 Mexico USA Argentina Germany 120 Brazil 90 UK Spain South Africa Saudi Arabia Bulgaria Oman 60 Hungary Poland Iraq Turkey Greece TurkmenistanJordan CCI t
Slide 6: We are capitalizing on favorable demand and demographic drivers
We are capitalizing on favorable demand and demographic drivers… Per cap 100 Still Beverage Consumption vs GDP (2014)* consumption (liters) USA 80 60 Germany Oman Poland Saudi Arabia UK 40 Spain Kazakhstan Hungary Mexico Russia Italy CCI territory total 20 South Africa Greece Jordan Turkey populatio
Slide 7: … allowing us to expand successfully
… allowing us to expand successfully CCI expanded by adding +40mn* potential consumers per year over the last 7 years No. of countries Population served* (mn) Operating plants 1 10 71 370 5 23 2004 ……… 2014 2004 ……… 2014 2004 ……… 2014 275mn UC… …424mn UC 480mn UC 533mn UC… …1.13 bn UC 2004… …2006 20
Slide 8: … diversifying across geographies and categories
… diversifying across geographies and categories. Volume Split - Geography Revenue Split Int'l 17% Int'l; 15% Int'l 49% Int'l 49% Turkey Turkey 83% 85% Turkey Turkey 51% 51% 2005 2014 2005 2014 Volume Split - Category EBITDA Split Still; 15% Tea 8% Int'l; 15% Still 21% Int'l 57% Sparkling Turkey 85%
Slide 9: Strong brand positioning and offering in our key markets
Strong brand positioning and offering in our key markets… Turkey Iraq Sparkling 66% Sparkling 29% #1 #2 Juice Water Energy Water 27% 6% #1 #2 Kazakhstan Pakistan Sparkling 49% Sparkling 35% #1 #2 Juice Water Juice Water 8%* 9% 2% 8% #5 #4 #8 #3 *Our market share in premium and mainstream segment is
Slide 10: … and our focus on turning volume into value
… and our focus on turning volume into value… Revenue Operating Strategic Growth Productivity Expenses Procurement Management Management Segmentation Production Sugar Selling, Marketing 2006 2013 and Distribution Turkey 1.74 1.41 Expenses Jordan 3.44 2.00 Kazakhstan 2.10 1.65 Azerbaijan 2.10 1.92 Av
Slide 11: … drive strong financial performance
… drive strong financial performance. Volume Net Revenues EBITDA (milion uc) (TRL million) (TRL milion) 5.985 1.131 2.924 962 553 549 275 1.032 3.061 578 142 413 275 1.032 142 2004 2014 2004 2014 2004 2014 Turkey International Turkey International Turkey International Sources: Company. Notes: CC Bev
Slide 12: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 13: We are delivering on our near term strategic priorities
We are delivering on our near term strategic priorities 13
Slide 14: Highlights in 2014
Highlights in 2014 ● Consolidated – continued volume growth despite significant headwinds ● Turkey – transition towards higher IC share continues ● International – double digit volume growth supported by market share gains ● Investments – continues in high growth markets ● FCF - Expected to be posit
Slide 15: Contribution to Volume Growth - 2014
Contribution to Volume Growth - 2014 Volume Growth Volume Split by Geography* Other 69 mn uc 10% Kazakhstan 9% 4 mn uc Iraq 9% Turkey 1131 51% 1058 mn uc mn uc Pakistan 21% 2013 TR INT'L 2014 Notes: (*) In unit cases 15
Slide 16: Category Growth and Breakdown - 2014
Category Growth and Breakdown - 2014 Category Growth Volume Split by Category 6,1% 6,7% 7,6% NRTD 7,9% Sparkling 5% Tea** 13,7% 8% 14,3% Sparkling Water Water 11% 72,6% 71,1% Tea Sparkling 71% Still exc. Still 16% Water 2013 2014 16
Slide 17: Turkey Overview – 2014
Turkey Overview – 2014 Category Growth Pricing • Number of transactions up • Price increases on the most selling FC • Sparkling – mid-single digit contraction packages effective from October 2014 • Still, excl. water –high teens up • Strong average pricing growth in 4Q14 • Water –mid-single digit up
Slide 18: International Overview - 2014
International Overview - 2014 Marketshare gains in all key markets ● Pakistan – successful campaigns +17% supported volume growth despite +19% headwinds ● Kazakhstan –production records in high season to meet strong demand as the devaluation impact +6% has faded ● Iraq – volume growth continued in S
Slide 19: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 20: Top Line Performance
Top Line Performance Consolidated 2014 2013 Change % 4Q14 4Q13 Change % Volume (m/uc) 1,131 1,058 6.9 % 198 204 (2.7%) Net Revenue (TL million) 5,985 5,186 15.4% 1,083 1,003 8.0% Net Revenue per UC (TL) 5.29 4.90 8.0% 5.47 4.92 11.1% 2014 2013 Change % 4Q14 4Q13 Change % Turkey Volume (m/uc) 578 574
Slide 21: Profitability
Profitability (TL million) 2014 2013 Change % 4Q14 4Q13 Change % Consolidated EBIT 629 594 5.8% (8) 24 n.m. EBIT Margin 10.5% 11.5% (0.7%) 2.4% EBITDA 962 892 7.8% 71 105 (32.7%) EBITDA Margin 16.1% 17.2% 6.5% 10.5% Net Income/(Loss) (excl. One-off) 315 247 27.6% (37) (49) (25.6%) (TL million) 2014
Slide 22: Financial Expenses
Financial Expenses (TL million) 2014 2013 Interest income 42 40 Interest expense (-) (146) (94) Foreign exchange gain / (loss) 56 103 Unrealized FX gain / (loss) – Borrowings (149) (305) Gain / (loss) on Derivative Transactions 3 0 Financial Income / (Expense) Net (194) (257) 22
Slide 23: Financial Debt Profile
Financial Debt Profile Financial Debt (US$ million) Maturity (US$ million) 1,446 1,140 5% 621 USD 1% 13% 4% EUR 1% 271 90% TL & JD 120 86% 80 27 21 PKR 2015 2016 2017 2018 2020 2023 2013 2014 Net Debt/EBITDA Net Debt (US$ 2013 2014 Change million) % 1.96x 1.80x Total Financial Debt 1,446 1,140 -21%
Slide 24: Free Cash Flow
Free Cash Flow Net Operating Cash Capex (TL million) Free Cash Flow (TL million) Incl. Working Capital (TL million) 748 660 2013 2014 10 2013 2014 -44 -704 2013 2014 -738 24
Slide 25: Appendix
Appendix ● Financial Statements 2013 ● Corporate Structure ● Country Data ● Turkey AFB Market ● Trade Structure in Turkey
Slide 26: Introduction to Financial Statements
Introduction to Financial Statements Basis of Preparation Consolidated / International Turkey $/TL $/TL Year-End Average Functional TL USD Currency December December 2. 3189 2.1865 31, 2014 31, 2014 Reporting TL USD December December Currency 2.1343 1.9033 31, 2013 31, 2013 Presentation ∆ 8.6% ∆ 14.
Slide 27: Top Line Performance & Profitability 2013
Top Line Performance & Profitability * 2013 2012 Change % Consolidated 2013 2012 Change % (TL million) EBIT 594 486 22.3% Volume (m/uc) 1,058 936 13.0% EBIT Margin 11.5% 10.9% EBITDA 892 730 22.2% Net Revenue 5,186 4,449 16.6% EBITDA Margin 17.2% 16.4% Net Revenue per UC (TL) 4.90 4.75 3.2% Net Inco
Slide 28: Corporate Structure
Corporate Structure Coca-Cola İçecek A.Ş. 100.00% Tonus Turkish-Kazakh Joint 100.00% Venture L.L.P, CCI International Holland B.V. Coca-Cola Satış ve Dağıtım The Netherlands 99.97% Kazakhstan A.Ş., Turkey J.V. Coca-Cola Almaty Bottlers 51.23% L.L.P., Kazakhstan 48.77% Mahmudiye Kaynak Suyu 100.00%*
Slide 29: Country Data
Country Data % of pop. GDP per Per cap cons CCI’s Pop. in CCI’s 2014 below 30 cap. in of spark. m.share in Country 2014 Vol. years 2014 bev. in 2014 spark. bev. (mln) (2) Breakdown (2) ($) (3) (L) (4) in 2014 (5) Turkey 77.7 (1) 49% (1) 19,556 41 66% 51.1% Pakistan 185.1 63% 4,746 19 35% 21.2% Kazak
Slide 30: Building a Sustainable Growth Business
Building a Sustainable Growth Business Energy usage ratio (MJ lt of product) TCCC EAG President’s 2005 2013 1,69 Sustainability Awards ● Best Country Bottling Coca-Cola Operation Award 0,44 0,40 0,41 System Average 0,41 ● Winner: Turkey 2009 & 2013 0,27 0,26 0,28 ● Finalist: Jordan & Azerbaijan 2013
Slide 31: Turkey AFB Market
Turkey AFB Market AFB Market RTD AFB Market 5.4 billion uc (excluding milk) 1.6 billion uc (excluding milk) Sparkling Other Water 3,6 7,5 Dairy/Soy 3,8 HOD 24,1 Fruit Sparkling Juice Bev Tea 10,5 37,6 45,1 RTD AFB 29,3 Bottled Water 37,0 Hot Coffee 2,6 Source: Canadean, 2014 Notes: RTD: Ready-to-dri
Slide 32: Trade Structure in Turkey
Trade Structure in Turkey ● Half of volume delivered by traditional trade channels ● Highest retail coverage among all FMCG categories in Turkey Other Discounter 1,3 5,7 On Premise 22,7 Traditional 50,1 Modern 20,2 Source: Company Notes: On Premise Includes caterings, universities, workplaces, trans
Slide 33: Credit Ratings, Glossary and Investor Relations Contact
Credit Rating Glossary • Long Term Issuer Rating, ‘Baa3’, Stable Outlook AFB: Alcohol Free Beverages (Moody’s rating, Apr 15, 2014) • Foreign Currency Senior Unsecured rating and CAGR: Compound Annual Growth Rate CMB: Capital Markets Board of Turkey IDR ‘BBB’, Stable Outlook • Local Currency Senior
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