Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (November 2017)
33 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, November 2017
Slide 1: Investor Presentation Post 9M2017 Financials
v INVESTOR PRESENTATION Post 9M2017 Financials
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 - Ownership Structure
ANADOLU EFES - OWNERSHIP STRUCTURE ANADOLU GROUP1 AB InBev Yazıcılar Özilhan Sınai Anadolu Endüstri 24.0% 23.6% 13.5% 6.0% Harmony Ltd. Holding Yatırım Holding 33% Public BEER SOFT DRINK 50.3% OPERATIONS OPERATIONS TURKEY COCA-COLA BEER OPERATIONS İÇECEK2 (CCI) COCA-COLA OPERATIONS INTERNATIONAL BEE
Slide 4: Anadolu Efes at a Glance
ANADOLU EFES AT A GLANCE Serving more than 670 mn people 16 countries; 14 Breweries & 25 Bottling Plants 16 11 ◉ Europe’s 6th largest brewer ◉ World’s 14th largest brewer ◉ 5th largest Coca-Cola bottler in the Cola system 2005 2016 # of Countries* World class brand portfolio in beer & soft drinks St
Slide 5: Consolidated Performance – 9M2017
Consolidated Performance – 9M2017 SALES VOLUME NET SALES REVENUE EBITDA (BNRI) & EBITDA (BNRI) Margin 18.7% 17.8% mn TL mn TL mhl 70.4 73.7 10,188.6 8,265.0 1,547.7 1,810.5 9M2016 9M2017 9M2016 9M2017 9M2016 9M2017 BREAKDOWN* 6% 11% 15% 16% 21% 19% 68% 66% 78% Turkey International Soft 5 *Breakdowns
Slide 6: 9M2017 Key Highlights
9M2017 KEY HIGHLIGHTS ◉ Volume up 4.9% in 3Q2017 and 4.6% in 9M2017 y-o-y Growth momentum continued in international beer operations and soft drinks 9M2017 performance in line with our guidance of mid single digit growth ◉ Revenue up 23.5% in 3Q2017 and 23.3% in 9M2017 y-o-y, outperforming volume
Slide 7: Strong Competitive Advantages
STRONG COMPETITIVE ADVANTAGES ◉ Balanced Beer & Soft Drink Operations ◉ Strategic Partnership with AB InBev & TCCC ◉ Expertise & Know-how in driving cost efficiencies ◉ Strong regional player powered by proven local know-how 7
Slide 8: Solid Cash Flow Generation
SOLID CASH FLOW GENERATION 1,030 1,016 735 TL million 638 486 479 413 345 172 171 118 118 45 -138 2010 2011 2012 2013 2014 2015 2016 FCF FCF (Including Investing Activities) 8
Slide 9: Long Term Key Priorities
LONG TERM KEY PRIORITIES Continue to generate value by margin improvement and FCF generation through our priorities ◉ Capitalizing on our strong brand portfolios Beer ◉ Achieving optimal brand & SKU mix ◉ Excelling in execution ◉ Focusing on quality market share ◉ Strong cash flow generation with sp
Slide 10: Anadolu Efes
ANADOLU
Slide 11: Beer Operations
BEER OPERATIONS RUSSIA #2 Brewer* #2 %15 Market Share MOLDOVA #1 #1 Brewer** KAZAKHSTAN #1 #1 Brewer* GEORGIA #1 #1 Brewer*** TURKEY #1 Brewer* %62 Market Share #1 11 * Volume share, Nielsen, 9M2017 ** Company estimates *** Gamma Retail Audit
Slide 12: Markets with Low Per Capita Consumption and High Growth Potential
MARKETS WITH LOW PER CAPITA CONSUMPTION AND HIGH GROWTH POTENTIAL ◉ Operating markets with growth potential characterized by low per capita consumption young populations developing economies westernization/urbanization Per Capita CAGR Growth 2011-2016(%) 12% Efes Operating Countries 7% ROMAN
Slide 13: Beer Group Strategy
BEER GROUP STRATEGY BRANDS Provide choice and innovation to consumers: Grow brand love E XECUTION Excell in customer collaboration availability and point of sale activation E FFICIENCY Build competitive advantage through lean and efficient operations RELATIONS Focus on employees, customers, regulato
Slide 14: Turkish Beer Market
TURKISH BEER MARKET ◉ Low per capita consumption of 11 liters* offering a growth potential ◉ Growing population with 1.4% annual growth rate in 2016 48% is below age 30 ◉ Returnable market enabling higher operational profitability Bottles & kegs amount to more than half of total beer market 14 *
Slide 15: Efes Turkey
EFES TURKEY Low per capita consumption of 11 liters offering a growth potential ◉ 3 Breweries & 2 Malteries & 1 Hops Processing Facility ◉ 62% market share* ◉ 100% brand awareness for “Efes Pilsen” ◉ Rich portfolio of local, imported & licensed brands covering all segments ◉ # 1 in consumer spending
Slide 16: Russian Beer Market
RUSSIAN BEER MARKET ◉ World’s 5th largest beer market with total consumption of ~80 mhl ◉ Expected compounded annual growth rate of 2%* between 2017-2021 ◉ Dominated by multinational brewers Top 4 accounting for ~ more than 70% of the market ◉ Share of Modern Trade above 60% - more than doubled in
Slide 17: Efes Russia
EFES RUSSIA #2 player with; Efes RUSSIA ◉ 6 Breweries – 21.7 mhl total brewing capacity Efes RUSSIA 15% 15% ◉ 4 Malteries & 1 Preform Plant Carlsberg Carlsberg 31% 32% ◉ AEFES’ largest beer market; 54% of total beer volumes from Russia in 9M2017 Inbev Inbev 11% 12% ◉ 15% overall market share* Heinek
Slide 18: Other International Beer Operations
OTHER INTERNATIONAL BEER OPERATIONS ◉ Market leader in Kazakhstan Georgia Moldova 18
Slide 19: Commitment to Environment
COMMITMENT TO ENVIRONMENT ENERGY AND EMISSIONS MANAGEMENT 10%+10% Compared to 2008, we consumed 10% less energy and generated 10% fewer emissions per unit product. Between 2008- 2013 the amount of energy we saved is equal to the yearly consumption of 200.000 households OPERATIONAL RELIABILITY 22 Tho
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Slide 21: CCI at a Glance
CCI AT A GLANCE ◉ Market leader in Turkey with 64% ◉ 25 Bottling Plants in 10 Countries & Kazakhstan with 49% market ◉ 5th largest Coca-Cola bottler in Cola system share ◉ Annual capacity of 1.4bn uc ◉ #2 in Pakistan with 37% market ◉ 1.2bn uc sales volume share & #2 in Iraq ◉ 26bn annual servings 5
Slide 22: CCI at a Glance: Sparkling Beverage Consumption vs GDP
CCI AT A GLANCE 180 Sparkling Beverage Consumption vs GDP (2015) 150 Mexico USA Per Cap Consumption (liters) Argentina 120 Germany 90 UK Spain South Africa Saudi Arabia Bulgary 60 Hungary Oman Poland Jordan Iraq Turkey Kazakhstan Greece Turkmenistan Russia Italy CCI territory 30 Kyrgyzstan Egypt Tot
Slide 23: Soft Drinks Business Strategic Priorities
SOFT DRINKS BUSINESS STRATEGIC PRIORITIES 1 Accelarate Revenue and Margin Growth 2 Grow Sparkling Category and Per Caps 3 Selectively Expand Profitable Still Portfolio 4 Continue to Build and Enchance Our Reputation 5 Build a World Class Organisation 23
Slide 24: Strong Brand Portfolio
STRONG BRAND PORTFOLIO BRAND & FLAVOR EXPANSION PACKAGE INNOVATION 2006 2016 BRANDS 17 34 DIFFERENTIATED PACKAGE SEGMENTATION ACROSS CHANNELS, CUSTOMERS FLAVORS 44 150 & CONSUMERS 24
Slide 25: Financials and Outlook
ANADOLU EFES IR AN aN \ FINANCIALS AND OUTLOOK K NS
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS TURKEY BEER INTERNATIONAL BEER CCI (TL mn) (TL mn) (TL mn) 9M2017 vs 9M2016 9M2017 vs 9M2016 9M2017 vs 9M2016 Volume (mhl) 4.4 -5.7% 11.9 8.1% 1,010.3* 4.7% Net Sales 1,146.4 3.5% 2,153.5 47.6% 6,864.7 21.0% Gross Profit 667.8 1.8% 911.7 36.3% 2,355.1 19.0% EBIT (BNRI) 142.1 -27
Slide 27: Gross & Net Debt
GROSS & NET DEBT Anadolu Efes Consolidated Beer Group 9M2016 9M2017 9M2016 9M2017 5,418 8,147 TOTAL FINANCIAL DEBT (m TL) 2,179 2,541 TOTAL FINANCIAL DEBT (m TL) TOTAL CASH & EQUIVALENTS (m TL) TOTAL CASH & EQUIVALENTS (m TL) 2,264 5,087 1,023 1,413 NET DEBT (m TL) 1,156 1,129 NET DEBT (m TL) 3,154
Slide 28: Balance Sheet Flexibility
BALANCE SHEET FLEXIBILITY ◉ 9M2017 Net Leverage Ratios are within comfortable area Net Leverage Ratio:Net Debt / EBITDA (BNRI) Anadolu Efes Consolidated Beer Group 1.8 ◉ 77% of cash is hold as hard 1.8 ◉ 69% of cash is hold as hard times 1.5 times currency 1.5 currency ◉ 99% of debt is in hard ◉ 97%
Slide 29: Borrowing Mix & Liquidity Profile
BORROWING MIX & LIQUIDITY PROFILE ◉ Easily manageable debt repayment schedule ◉ Weighted average maturity of debt for Beer Group is app. 4.0 years and Anadolu Efes is app. 3.7 years 778 718 523 523 500 520 154 142 142 Maturity Schedule 94 111 BEER 60 59 CCI 49 46 35 43 AEFES 20 17 17 3 2017 2018
Slide 30: Interest Breakdown
INTEREST BREAKDOWN ◉ Significant portion of debt is fixed, minimized interest rate risk ANADOLU EFES BEER GROUP Floating : 26% Floating : 15% Floating : 21% Floating : 12% Fixed : 74% Fixed : 85% Fixed : 79% Fixed : 88% 9M2016 9M2017 9M2016 9M2017 30
Slide 31: 2017 Guidance
2017 GUIDANCE Sales Volume: Mid-single digits growth on a consolidated basis Total Beer: Mid-single digit growth Turkish beer market: Flattish Turkey own beer: Down low-single digit Russian beer market: Down low-single digit Russian own beer: Outperformance of beer market Consolidated Soft Drinks: M
Slide 32: Financial Priorities
FINANCIAL PRIORITIES ◉ Sustain consolidated cash flows through; ◉ Efficiency improvements via savings focus on working capital optimization ◉ Managing impact of F/X volatility on operations optimized capex policy ◉ Commitment to Investment Grade Ratings sticking to tight balance sheet manageme
Slide 33: Financial Highlights - FY2016
FINANCIAL HIGHLIGHTS - FY2016 TURKEY BEER INTERNATIONAL BEER CCI (TL mn) (USD mn) (TL mn) FY2016 vs FY2015 FY2016 vs FY2015 FY2016 vs FY2015 Volume (mhl) 6.0 -9.9% 13.9 -0.9% 1,189.1* 3.2% Net Sales 1,438.6 -3.1% 630.6 -13.0% 7,050.2 4.9% Gross Profit 853.5 -6.0% 275.4 -20.3% 2,392.5 2.5% EBIT (BNRI