Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Investor Presentation (August 2014)
40 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, Aug 15, 2014
Slide 1: Investor Presentation
INVESTOR PRESENTATION Strictly Confidential 1 August 15, 2014
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: A Total Beverage Company Refreshing 660mn Consumers With A Strong History of Growth
A Total Beverage Company Refreshing 660mn Consumers With A Strong History of Growth... • A world class brand portfolio • In markets with low per capita consumption -Turkey: 11 litres of beer, 45 litres of sparkling beverages -Kazakhstan: 30 litres of beer, 34 litres of sparkling beverages -Pakistan:
Slide 4: Operating Geography and Ownership Structure
Operating Geography Ownership Structure Refreshing around 660mn consumers in SABMiller Yazıcılar Holding Özilhan Sınai Anadolu Endüstri markets with low per capita consumption... Harmony Ltd. 24.0% 23.6% Yatırım 13.5% Holding 6.0% Public 33.0% ANADOLU EFES 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS
Slide 5: Our Group Strategy
Our Group Strategy Maintain focus on beer and soft drinks brands Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct companies to maintain focus, build capability & support investment In our core beer markets, restore margin & share in
Slide 6: Consolidated Financial Performance - 1H2014
Consolidated Financial Performance - 1H2014 2009 2013 Beer 1H2013 Soft Drinks 1H2014 EBITDA (BNRI) Breakdown* Volume* Sales Volume1H2014 Breakdown* Revenue* 1H2014 Sales Revenue Breakdown* 85.6 EBITDA*(BNRI)** 1H2014 9,195.8 Turkey Turkey Beer International Beer Turkey Beer 5,144.6 million TRL 8% Be
Slide 7: Beer Operations
Beer Operations Strictly Confidential 7
Slide 8: The Leading Brewer in CIS and Turkey
The Leading Brewer in CIS and Turkey Europe’s 5th largest and the World’s 10th largest brewer in terms of sales volume* with No.1 position in most of the markets in which we operate Largest brewer by sales volume in Turkey(1), Kazakhstan(1), Moldova(2), Georgia(3) 3rd largest brewer by sales vol
Slide 9: Breakdown Of Pure Alcohol Consumption
Breakdown Of Pure Alcohol Consumption 100% 14% 14% 17% 90% 20% 22% 19% 26% 25% 24% 33% 80% 38% 51% 70% 20% 25% 38% 47% 21% 30% 41% 9% 60% 34% 10% 36% 50% 12% 40% 30% 60% 58% 53% 56% 48% 48% 51% 20% 42% 43% 39% 39% 37% 10% 0% Austria Czech Rep. Denmark Finland Germany Ireland Netherlands Poland Spain
Slide 10: Total Beer Market Size & Per Capita Beer Consumption
Total Beer Market Size & Per Capita Beer Consumption in Operating Markets & in Some Selected Countries Per Capita CAGR Growth 2009-2013 (%) 12% GEORGIA MOLDOVA 7% CHINA BULGARIA POLAND 2% KAZAKHSTAN ROMANIA UKRAINE 0 20 40 60 80 100 120 140 160 GREECE CZECH REPUBLIC USA GERMANY -3% TURKEY SERBIA RUS
Slide 11: Long Term Beer Group Strategy
Long Term Beer Group Strategy - It’s all about the consumer and delivering Brands choice, innovation and brand love - Great distribution and activation at the point of sale Execution - Lean and efficient organisation throughout the supply Efficiency chain and RTM - with our employees, governments, s
Slide 12: Beer Group's Strategy for 2014 - 2016
Beer Group’s Strategy for 2014 - 2016 Expand brand & package portfolio in premium and mainstream segments in all countries Leverage our SABMiller alliance to provide global & regional brand power Reduce cost base through capacity reduction, procurement savings & opex reduction in Russia & Turk
Slide 13: Key Enablers For 2014-2016
Key Enablers For 2014-2016 - Best brands Efes Pilsen Bomonti Miller Kozel Kruzhka Svezhego Beliy Medved Samuel Adams 387 Efes Malt Chisinau Stary Melnik - Strong RTM - Lean & efficient manufacturing - Market leading capabilities in marketing & sales - Superior customer relationship 1H2014 Net Debt /
Slide 14: Turkey Beer Operations
Turkey Beer Operations Strictly Confidential 14
Slide 15: Developments in Turkey Beer Operations
Developments in Turkey Beer Operations Historical Volume Performance* 8.5 8.5 Negative impact of regulatory changes & higher 8.5 8.6 8.4 prices continued in 2Q2014, but at a descending mhl 7.3 mhl 8.5 7.3 3.9 3.5 rate despite; 3.9 3.5 adverse weather conditions in June 20082009 2009 2010 2013 20
Slide 16: Turkey Beer Operation's Strategy
Turkey Beer Operation’s Strategy - Focus on Brands in line with LT strategy Brands - New Brands and SKU launches (Launch of ‘’Efes Pilsen Special Edition:10’’, ‘’Samuel Adams’’ and ‘’Grolsch’’ as well as ‘’Efes Malt’’ & ‘’Bomonti’’ in returnable SKUs) - Creative & innovative executions to maximize i
Slide 17: Focus on Brands
Focus on Brands Through a portfolio for all occasions... Miller Beck’s Duvel Samuel Marmara Gold Adams Mariachi Peroni Grolsch Economy Premium 100% brand awareness for Efes Efes Pilsen 2% 4% Marmara Kırmızı Exports to more than 70 countries Efes Pilsen M34 # 1 in consumer spending in Food Özel Seri:
Slide 18: Efficiency & Relationship
Efficiency & Relationship EFFICIENCY RELATIONSHIP Minimize costs through procurement Proactive relationships with governments savings Working with best people Minimize opex Win-win relationship with suppliers & RTM optimization business partners Increase cooperation with strategic part
Slide 19: Turkey Beer Financial Performance
Turkey Beer Financial Performance Volume* Revenue 8.5 8.5 8.5 8.6 8.4 mhl million TRL 7.3 mhl 8.5 1,517.5 7.3 3.9 3.5 1,264.2 833.0 801.8 3.9 3.5 20082009 2009 2010 2013 2011 2012 2013 1H2013 1H2013 1H2014 1H2014 2009 2013 1H2013 1H2014 *Sales volume including exports EBITDA Consolidated EBITDA 39.8
Slide 20: International Beer Operations
International Beer Operations Strictly Confidential 20
Slide 21: International Beer Operations
International Beer Operations Strong presence in the CIS region with operations in 5 countries Largest brewer by sales volume in Kazakhstan(1), Moldova(2), Georgia(3) 3rd largest brewer by sales volume & 2nd largest by value in Russia(1), the World’s 4th largest beer market(4) 4th largest br
Slide 22: Better Than Expected Sales Performance in International Operations
Better Than Expected Sales Performance in International Operations Volume Development of EBI Breakdown of Sales Volume - 1H2014 18.2 Others mhl 37% 13.6 Russia 63% 9.5 9.2 2009 2013 1H2013 1H2014 • In Russia, volume performance continued to be better than our expectations in 2Q2014 • On a consolidat
Slide 23: Continuing Market Share Gains in Russia
Continuing Market Share Gains in Russia Market Share by Volume* – 1H2014 Russia Other 22.3% Carlsberg 36.1% Heineken 13.1% InBev EFES RUS 14.3% 14.2% Shares of Carlsberg and INBEV include Ukrainian brands • Beer market sales volumes in Russia* declined by high-single digit in 1H2014 versus 1H2013
Slide 24: Opportunities in the world's 4th largest beer market
Opportunities in the world’s 4th largest beer market -Focus on Brands; Premiumization & further strenghtening main brands Brands -Pioneering innovation in the region; new launches & redesigns (launch of “387” in Russia as well as many new SKU launches in all international operating markets) -Continu
Slide 25: Other Operating Countries
Other Operating Countries Market Share by Volume Shymkent Pivo InBev #4 brewer Kazakhstan 6.3% 0.6% Ukraine Other 7.8% #1 brewer Capacity: 2.9 mhl Carlsberg 27.4% EBI 57.9% Capacity: 2.6 mhl Growing operation through brand focus Nielsen , YTD June 2014 Georgia Moldova #1 brewer #1 brewer Capacity: 1
Slide 26: Strongly Positioned in All Markets
Strongly Positioned in All Markets SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Miller Efes Bavaria Beliy Medved Kazakhstan Grolsch V. Kozel Zwei Meister Karagandinskoe Lubitelskoe Pilsner Urquell Amsterdam Navigator Kruzhka Svezhego Efes Radler Zhigulevskoe MEGA PREMIUM SUPER PREMIUM PREMIUM MAINSTREAM
Slide 27: International Beer Financial Performance
International Beer Financial Performance Volume Revenue 1,300.5 million USD 18.2 mhl 13.6 857.3 9.5 9.2 680.7 626.7 2009 2013 1H2013 1H2014 2009 2013 1H2013 1H2014 EBITDA* (BNRI) 19.8% 13.9% 10.8% 11.7% million USD 170.1 margin 140.1 79.9 87.3 2009 2013 1H2013 1H2014 Strictly Confidential 27
Slide 28: Agenda
Agenda Strictly Confidential 28
Slide 29: Soft Drinks Business Strategic Priorities
Soft Drinks Business Strategic Priorities Strictly Confidential 29 29
Slide 30: CCI at a glance
CCI at a glance Operating in one of the world’s most dynamic and exciting markets A gateway to Turkey, Pakistan, Central Asia and The Middle East Serving close to 370 million people; Shareholder Structure 60% of our population is below 30 years of age 2004-2013 CAGR: Sales volume: 16% Net Sales:
Slide 31: Future Opportunities
Future Opportunities Strictly Confidential 31 31
Slide 32: Geographic and Category Split of Business (1H2014)
Geographic and Category Split of Business (1H2014) Volume split (uc) - Consolidated Volume split (uc) – Consolidated Strictly Confidential 32 32
Slide 33: Strong Brand Positioning and Offering in Our Key Markets
Strong Brand Positioning and Offering in Our Key Markets Strictly Confidential 33 33
Slide 34: Soft Drinks Financial Performance
Soft Drinks Financial Performance International Volume Volume Turkey 573.6 484.2 438.9 mu/c mu/c 297.2 235.0 270.7 282.0 147.6 2009 2013 1H2013 1H2014 2009 2013 1H2013 1H2014 2007 723.2 Revenue 2008 854.7 million TRL 5,186.4 2009 2014 OUTLOOK 916.6 2,407.5 2,977.8 2,491.0 2010 High- single digit v
Slide 35: FY2014 Outlook
FY2014 OUTLOOK Strictly Confidential 35
Slide 36: 2014 Outlook
2014 Outlook • In 2Q2014, our volume and financial performance was still better than our expectations. This continued to prove our confidence on the results of the initiatives we have taken. • However, considering also the fact that our operating region is exposed to several economic and political i
Slide 37: Appendix
APPENDIX Strictly Confidential 37
Slide 38: Operating Model
Operating Model Beverage Group President and Anadolu Efes CEO Damian Gammell Coca-Cola İçecek A.Ş. CEO Burak Başarır Deputy CEO of Beverage Group Efes Turkey Efes Russia Eastern Europe and CFO Hüseyin Akın MD MD CIS Group MD Turkey GM Chief Financial Officer Efes Kazakhstan MD Central Asia Supply Ch
Slide 39: Historical Volume and Sales Price Development
Historical Volume and Sales Price Development Shelf price rose further to 4.6TRL 9.2 as 5of July 8.5 8.5 8.5 8.4 8.6 2014... 8.2 4.3 4.5 7.6 7.1 7.1 7.3 50 cl returnable bottle price 7.2 6.8 4 6.4 6.2 5.9 6.0 3.5 5.7 3.7 mhl 5.2 3.2 3 4.2 2.8 2.5 3.2 2 2.1 2.0 1.9 2.2 1.7 1.8 1.5 1.4 1.2 1.3 1 0.4 0
Slide 40: Strictly Confidential
Strictly Confidential 40
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