Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (September 2022)
32 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, September 2022
Slide 1: Anadolu Efes Investor Presentation
ANADOLU EFES INVESTOR PRESENTATION September 2022
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 at a Glance
ANADOLU EFES AT A GLANCE ANADOLU EFES
Slide 4: Regional Beverage Company With Leadership Positions
Regional Beverage Company With Leadership Positions Serving Anadolu Efes CCI 116 mhl 7.0 bn TL Sales Volume** 750 mn 5 Europe’s *th Among EBITDA** Population World’s 9*th Top 10 Largest 39.3 bn TL 4.3 bn TL 70+ Export Largest Coca-Cola Sales Revenue** Free Cash Flow** Brewer Bottlers Countries BEER
Slide 5: Integrating Governance and Growth
Integrating Governance and Growth Superior Governance and Strategic Partnership Broad Geographical and Business Diversification ANADOLU EFES More Balanced Business Mix** BEER 2021 SOFT DRINK OPERATIONS OPERATIONS Turkey Beer 24% 43% RUSSIA UKRAINE 20.1% ) 33% 50.3% Free Float 28.1% 1.5% Free Float
Slide 6: Vision & Mission
Vision,&Mission Russia Ukraine& Beer Volume Breakdown Values OUR VISION: OUR MISSION: Be the largest brewer from Adriatic to We brew joy passionately and China by developing and owning social responsibly. life and beer culture. OUR VALUES: PASSIONATE AGILE COLLABORATIVE ACCOUNTABLE FAIR
Slide 7: Consistent Solid Growth with Growing Share in International
Consistent Solid Growth with Growing Share in International More Balanced Business Mix** 6% Volume Growth* 2021 32% 30% 44% 2016 56% 68% Revenue Growth* Soft drinks Beer Group 32% Growing International Business** EBITDA Growth* 2021 30% 33% 48% 2016 52% FCF Growth* 70% International Turkey * 2016-20
Slide 8: Solid Investment Theme
Solid Investment Theme Diversified business model including Strategic Partnerships with World’s leading beer and soft drinks FMCG companies; AB InBev & TCCC Excellent brand portfolio including some of Strong market positions across all operations the world’s best known brands and strong regional bra
Slide 9: Beer Operations
BEER OPERATIONS ANADOLU EFES
Slide 10: Strong Positions Across the Board
Strong Positions Across the Board 11 Breweries RUSSIA 3 Breweries TURKEY World’s 6th largest beer market 11 liters per capita 54 liters per capita #1 Position #1 Position 52% Market share 30% Market share 13% of Beer Volumes 63% of Beer Volumes 2 Breweries KAZAKHSTAN 3 Breweries UKRAINE Beer market
Slide 11: Product Portfolio Priorities
Product Portfolio Priorities Focus on Develop Premium Ensure New Products Portfolio Affordability & Make Expansion Play Innovations Strengthen Expand into the Core Adjacent segment Categories / NABLAB
Slide 12: Volumes beating expectations in 2Q2022
Volumes beating expectations in 2Q2022… Consolidated Beer Soft Drink Volume Operations Operations 2Q 1H 2Q 1H 2Q -12% -5% +25% +22% +13% reported Flat excl. Ukraine +6% excl. Ukraine +15% organic +13% organic +6% organic International International 2Q 1H 2Q 1H 1H -16% -8% +29% +13% organic +29% +14%
Slide 13: Beer Group 2Q Highlights
Beer Group 2Q Highlights Russia CIS • Market was down by low-single digits in 2Q • Volume growth of mid-single digits on average • Declines in LP and SP segments • Kazakhstan grew by low-single digit; contributed by • Own volume performance in line with the market premium growth & new launches • Hig
Slide 14: Soft Drinks
SOFT DRINKS
Slide 15: Strategic Soft Drinks Priorities to Create Value
Strategic Soft Drinks Priorities to Volume Breakdown By Country* Create Value Accelerate Be the Best in Win with Our Digital for Industry Win with “Quality” Growth FMCG Execution People Leadership Stakeholders • Revenue Growth • Win at the Point of Sale • Integrated Talent Strategy • Digital transfo
Slide 16: Soft Drinks 2Q Highlights
Soft Drinks 2Q Highlights • Reported volume growth of 25% in 2Q • Türkiye volume grew 20% in 2Q • 15% growth organically* • High volume momentum in Ramadan period • Sparkling category growth of 25% • Reviving tourism season • Coca-ColaTM grew by 26% • Increased momentum in the on-trade channel • Sti
Slide 17: 1H2022 Consolidated Financial Overview
1H2022 CONSOLIDATED FINANCIAL OVERVIEW
Slide 18: Strong Set of Results from Top to Bottom
Strong Set of Results from Top to Bottom… Anadolu Efes NET REVENUE EBITDA BNRI % NET INCOME FREE CASH FLOW 2Q 1H 2Q 1H 2Q 1H 2Q Reported Reported 1H +136.2% +131.5% 20.2% 18.8% TL1,426 mn TL1,294 mn TL5,421 mn TL4,719mn CCR* CCR* (+29 bps) (+199 bps) (+TL3,217 mn) (+TL 2,765 mn) +58% +59% • Solid vo
Slide 19: Financials
Financials Anadolu Efes Beer Group mTL mTL 2Q2022 Change 1H2022 Change 2Q2022 Change 1H2022 Change Sales Revenue 24,536 +136.2% 38,305 +131.5% Sales Revenue 9,842 +115.6% 14,946 +114.2% Gross Profit 8,825 +125.2% 13,611 +131.8% Gross Profit 4,155 +127.9% 6,100 +142.5% EBITDA (BNRI) 4,959 +139.6% 7,2
Slide 20: Strong Profitability & Free Cash Flow Generation
Strong Profitability & Free Cash Flow Generation Beer Group EBITDA (BNRI) Bridge Free Cash Flow Bridge mTL mTL Strong EBITDA +3,431 +179% performance with +32%* +22%* 51 5,105 1,990 180 575 +22%* 2,385 cost and expense 698 1,438 284 713 1,674 1,277 discipline 2Q2021 2Q2022 2Q2021 2Q2022 Higher FCF d
Slide 21: Balance Sheet & Risk Management
Balance Sheet & Risk Management Beer Group Hedges*: Anadolu Efes Cash Profile Debt Profile Commodity: 22% 36% FX & commodity TL 22.2 bn TL 34.7 bn Aluminum: 88% (2023: 50% for TR and CIS) ($1.3 bn) ($2.1 bn) 64%* hedging offset 78% PET/Resin: 100%** hard currency hard currency the pressure in Barley
Slide 22: Financial Priorities for 2022
Financial Priorities for 2022 Profitability Balance Sheet Risk Free Cash Flow Management Management Ensure necessary Maintain leverage Manage FX and Ensure strong Free pricing to mitigate ratios at healthy levels commodity price Cash Flow generation cost pressures volatilities through through discip
Slide 23: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES
Slide 24: Capital Allocation Priorities
Capital Allocation Priorities Leverage inorganic Maintaining a healthy growth opportunities balance sheet by keeping Net Debt / Penetrate and expand EBITDA between 1.0x – into new geographies 2.0x through exports Invest in brands, Maximizing innovation, product shareholder value diversification, thr
Slide 25: Sustainable Shareholder Return
Sustainable Shareholder Return Sustainable Free Cash Flow Generation Leading to High Dividend Yields* Anadolu Efes 8.3% 7.7% 6.3% 4,263 TL 1.93 TL 1.77 1.85 CAGR 3,012 mTL 36% 2,335 2.4% 2.0% 1.8% 1.3% 1.4% 1,315 1,030 1,054 TL 0.46 TL 0.51 TL 0.42 501 638 TL 0.25 TL 0.25 2014 2015 2016 2017 2018 20
Slide 26: Revised 2022 Outlook
FR Revised 2022 OUTLOOK Alas ASW ERNIE, — Male > —_ [o} a <x Zz < EFES
Slide 27: Resilient Performance Despite Headwinds
Remaining cautious for FY, Resilient Performance beer group Despite outlook is improved… Headwinds We make some improvements in our beer group outlook and the improvement in beer group outlook is also reflected into Anadolu Efes outlook while soft drink guidance is reiterated as announced in January
Slide 28: Sustainability
SUSTAINABILITY
Slide 29: Our Commitments – Road to 2030
Our Commitments – Road to 2030 ESG PRIORITIES GOALS Targeting Zero • Become carbon neutral in all our operations by 2030 • Become a certified zero-waste beer producer by 2030 for the environment • Continue to reduce plastic usage Increasing • Our Focus Areas: Culture & art, local development & women
Slide 30: Appendix
APPENDIX
Slide 31: More Room for Growth with Lower Per Caps
More Room Russia & Ukraine for Growth with Lower Per Caps Beer Consumption Per Capita in 2021 (in liters)2 143 98 96 93 92 89 88 84 78 75 74 73 72 69 67 67 63 63 Average: 63.1 Litres 61 54 53 51 50 47 43 Average: 34.0 Litres 34 34 33 33 33 31 30 11 Serbia Russia Norway Austria Moldova Romania Sloven
Slide 32: Thank You
ANADOLU EFES THANK YOU
Anadolu Efes — Investor Presentation (September 2022) on 6ix