Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (2024)
37 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, Apr 4, 2024
Slide 1: Anadolu Efes Investor Presentation FY2023
ANADOLU EFES INVESTOR PRESENTATION FY2023 1
Slide 2: Forward-Looking Statements & Disclosure
Forward-Looking Statements & Disclosure 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 current
Slide 3: Important Disclaimer Regarding TAS29
Important Disclaimer Regarding TAS29 As stipulated by the decree of the Capital Markets Board, the financial statements for the FY2023 have been presented in accordance with TAS29 (Turkish Accounting Standard 29: Financial Reporting in Hyperinflationary Economies), and retrospective adjustments have
Slide 4: Anadolu Efes Overview
ANADOLU EFES OVERVIEW
Slide 5: Anadolu Efes At A Glance
Anadolu Efes At A Glance Serving +770 mn Population 70+ Export Countries 21 Breweries in 6 Countries 31 Soft Drink Facilities in 12 Countries Europe’s 5*th World’s 10*th Largest Brewer Bangladesh 3**rd Largest Coca-Cola Bottler • The Barth Report 2022/2023 ** Based on the population served 5
Slide 6: Anadolu Efes By Operations
Anadolu Efes By Operations BEER GROUP TOTAL VOLUMES* 6 countries 122.9 mhl 21 Breweries 100+ brands REVENUE* 51.8 mhl brewing capacity TL 159.9 bn 35.7 mhl beer volume Strong LEADER positions EBITDA (BNRI)* SOFT DRINK GROUP TL 28.6 bn 12 countries 31 Bottling plants FREE CASH FLOW* 2.0 bn UC product
Slide 7: Ownership Structure & Subsidiaries
Ownership Structure & Subsidiaries 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS 24% 50% 43% Russia Türkiye Azerbaijan Türkiye 33% Kazakhstan Kyrgyzstan Free Float Kazakhstan Jordan Pakistan Moldova Iraq Uzbekistan Georgia Syria Turkmenistan 20.1% 50% Ukraine 50.3% Tajikistan Bangladesh 28.1% Free Flo
Slide 8: Our Strategy
OUR STRATEGY
Slide 9: Vision, Mission & Values
Vision, Mission & Values S Vision ‘Mission Be the largest brewer We brew joy from Adriatic to China by passionately and developing and owning responsibly. social life and beer culture. ‘Values PASSIONATE AGILE COLLABORATIVE ACCOUNTABLE ANADOLU EFES slp _ OP FAIR
Slide 10: Strategic Core Priorities
Strategic Core Priorities 10
Slide 11: Investment Theme
Investment Theme Diversified business model Strategic Partnerships with 1 including beer and soft 5 World’s leading FMCG drinks companies; AB InBev & TCCC Strong market positions Excellent brand portfolio with 2 6 some of the world’s best known across all operations brands and strong regional brands
Slide 12: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT
Slide 13: Russia
Russia Population: 66% of total beer volume 144 Million* Production Facilities: Market Size & Per Capita: 11 Breweries 83 mhl market size** 3 Malteries 58 liters per capita consumption** 1 Preform Production Facility Production Capacity: Market Share: 31.7 mhl Brewing 29% market share*** 288 000 Ton
Slide 14: Kazakhstan
Kazakhstan Population: 7% of total beer volume 20 Million* Production Facilities: Market Size & Per Capita: 2 Breweries 6.6 mhl market size** 33 liters per capita consumption** Production Capacity: Market Share: 2.6 mhl Brewing 46% market share*** Market Leader*** Main Brands: Efes Pilsener, Kruzhka
Slide 15: Georgia
Georgia Population: 3% of total beer volume 3.7 Million* Production Facilities: Market Size & Per Capita: 1 Breweries 1.3 mhl market size** 35 liters per capita consumption** Production Capacity: Market Share: 1.2 mhl Brewing and Soft Drink 45% market share*** Production Market Leader*** Main Brands
Slide 16: Moldova
Moldova Population: 2% of total beer volume 3.4 Million* Production Facilities: Market Size & Per Capita: 1 Breweries 0.9 mhl market size** 25 liters per capita consumption** Production Capacity: Market Share: 1.5 mhl Brewing and Soft Drink 59% market share*** Production Market Leader*** Main Brands
Slide 17: Türkiye
Türkiye Population: 17% of total beer volume 86 Million* Production Facilities: Market Size & Per Capita: 3 Breweries 11.2 mhl market size** 2 Malteries 13 liters per capita consumption** 1 Hops Processing Facility Production Capacity: Market Share: 6.9 mhl Brewing 52% market share*** 115 000 Tons M
Slide 18: FY2023 Operational Overview
FY2023 OPERATIONAL OVERVIEW
Slide 19: Russia
Russia • Slight increase* in Russian beer market in FY2023 • 2H2023 relatively stronger • Our volumes up by low-single digits percentage despite challenging competitive landscape • Market leadership* both in value and volume share • Strengthened position in premium segment • Non-alco volumes up low-
Slide 20: Kazakhstan
Kazakhstan • Kazakh beer market down mid-single digits in FY2023; • Challenging economic and political situation • Our volumes better than the market • Sustained market leadership* with market share gain • Kruzhka Svezhego; one of the highest growing brand • #1 Brand of the market • Karagandinskoye
Slide 21: Georgia Moldova
Georgia • Georgian beer market flattish in FY2023 versus LY • Our volumes grew by low-to-mid single digit; despite high base • Sustained market leadership* with market share gain • Karva & Natakhtari gained share • Solid growth recorded in premium brands • Premium craft beer brand “Taati” launched M
Slide 22: Türkiye
Türkiye • Market grew by high single digit* in FY2023; despite high inflation & lower consumer confidence • Our volume performance exceptionally good; up 9.1% • Good tourism helped both market & our volumes • Primary channel of purchase continued to be traditional trade • On-trade records relatively
Slide 23: Soft Drinks
Soft Drinks • Consolidated volumes down 2.6% in FY2023; • Türkiye and Pakistan volumes relatively softer • Central Asia and Iraq volumes contribution strong • Türkiye volumes down 5.1% • International volumes down by 1.1% • Pakistan down 16.4% due to macroeconomic disruptions • Uzbekistan up 25.8%;
Slide 24: FY2023 Financial Overview
FY2023 FINANCIAL OVERVIEW 24
Slide 25: Financial Priorities
Financial Priorities Cash Debt Risk Expense Management Management Management Management Ensure liquidity for Maintain long term Manage FX and Zero Based Budgeting operations and accelerate sustainable leverage commodity exposure dividend streams target of 1.0X - 2.0X Cautious and Smart Use Working C
Slide 26: Solid Financial Performance in 2023
Solid Financial Performance in 2023… Anadolu Efes Beer Group FY FY REVENUE • Volume growth TL159,877 mn TL58,003 mn • NET Effective pricing +3.1% -6.3% 17.9% 18.4% BNRI % EBITDA • Effective management of costs (+45 bps) (+50bps) • Prudent OPEX spending TL22,129 mn TL12,293 mn • Strong operational pr
Slide 27: Financials
Financials Anadolu Efes Beer Group mTL FY2022 FY2023 Change mTL FY2022 FY2023 Change Sales Revenue 155,060 159,877 3.1% Sales Revenue 61,872 58,003 -6.3% Gross Profit 53,556 59,000 10.2% Gross Profit 25,103 26,023 3.7% EBITDA (BNRI) 11,073 10,671 -3.6% EBITDA (BNRI) 27,021 28,573 5.7% Net Income/(Lo
Slide 28: EBITDA (BNRI) & Free Cash Flow Generation
EBITDA (BNRI) & Free Cash Flow Generation BEER GROUP BEER GROUP EBITDA (BNRI) Bridge mTL Free Cash Flow Bridge mTL -4% +71% -243 -458 -39 -1,115 -3,869 4,207 -717 4,302 11,073 10,671 -402 4,984 2,916 FY2022 Net Revenue COGS Selling, G&A Other FY2023 w/TAS29 Marketing Expenses w/TAS29 FY2022 EBITDA B
Slide 29: Cash & Debt Management
Cash & Debt Management Anadolu Efes Gross Debt Cash USD 2.0 bn USD 1.4 bn Average maturity 72% 62% 3.3 yrs held in Hard Currency held in Hard Currency Net Debt/EBITDA 30% 0.7x held in Eurozone Beer Group Gross Debt Cash USD 0.8 bn USD 0.7 bn Average maturity 69% 68% 3.3 yrs held in Hard Currency hel
Slide 30: Risk Management
Risk Management Beer Group Beer Group Hedges for 2024: COGS Split for 2023: 8% Commodity : 19% 16% Aluminum: 66% for TR & CIS @$2.320 6% 17% 16% 20% FX Exposure : Barley-Malt & Auxiliary Overhead (Labour Cost) Russia: 100% Hedged Glass Bottle Amortization & Other Overhead (USD/RUB: 96.97 ;EUR/RUB: 1
Slide 31: Capital Allocation Priorities & 2024 Expectations
CAPITAL ALLOCATION PRIORITIES & 2024 EXPECTATIONS
Slide 32: Capital Allocation Priorities
Capital Allocation Priorities Invest in Brands, Innovation, Product Diversification, Market Development, Digitalization and Production Capacity Maintain Healthy balance sheet by keeping Net Debt / EBITDA btw 1.0x – 2.0x Maximize Shareholder value through dividends with high yield Penetrate & Into ne
Slide 33: Sustainable Shareholder Return
Sustainable Shareholder Return • Consistent Dividend Distribution with Sustainable Free Cash Flow Generation 8.3% 7.7% 6.3% 3.1% 2.4% 2.0% 1.8% 1.7% 1.3% 1.4% 2.4 2.1 1.9 1.9 1.8 mTL 0.5 0.4 0.5 0.3 0.3 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gross Dividend Per Share (TL per 100 Shares) Gr
Slide 34: FY2024 Expectations
FY2024 Expectations ANADOLU EFES BEER GROUP SOFT DRINKS GROUP VOLUME Low-to-mid-single digit growth Slight growth Mid-single digit growth SALES REVENUE Low-thirties growth Low-twenties growth Low forties growth FX-Neutral basis EBITDA Margin Decline around 100 bps Decline around 200 bps Flat 34
Slide 35: Sustainability
SUSTAINABILITY
Slide 36: Road to 2030
Road to 2030 Targeting Zero Increasing Getting Stronger our support through for the environment for social impact Diversity & Inclusion Become carbon neutral in all our Our Focus Areas: Increase the representations of operations by 2030 women in our organization from 30% to 51% by 2030 Culture & art
Slide 37: FX Rates
FX Rates FY2022 FY2023 Δ% AVG 16.57 23.78 43.53% USD/TL PE 18.70 29.44 57.44% AVG 17.38 25.72 48.01% EUR/TL PE 19.93 32.57 63.40% AVG 4.14 3.59 -13.36% TL/RUB PE 3.76 3.05 -19.01% AVG 27.82 19.19 -31.03% TL/KZT PE 24.74 15.44 -37.59% AVG 1.95 1.54 -21.28% TL/UAH PE 1.96 1.29 -34.03% AVG 1.14 0.76 -3