Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (2020)
33 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, 2020
Slide 1: 2019 Investor Presentation
ANADOLU- EFES 2019 INVESTOR PRESENTATION
Slide 2: Anadolu Efes At a Glance
Anadolu Efes At a Glance 700 mn consumers Europe’s 5th* , World’s 10 th* largest brewer 21 Breweries* & 26 Bottling Plants 7th largest Coca-Cola bottler 111** mhl sales volume 48.4 mhl brewing capacity 23.3** billion TL sales revenue 1.5 bn u/c bottling capacity 4.1** billion TL EBITDA 2.3** billion
Slide 3: Ownership Structure
Ownership Structure 100% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS -Turkey Beer Operations -International Beer Operations (EBI) 50% Russia 100% Kazakhstan 96.9% Moldova 100% Georgia 50% Ukraine 3
Slide 4: Investment Theme
Investment Theme Diversified business model including beer and soft drinks Strategic Partnership with World’s leading FMCG companies; AB InBev & TCCC Strong brand portfolio including some of the world’s best known brands and strong regional brands Abundant potential in demographics Proven track reco
Slide 5: Anadolu Efes Financial Highlights
Anadolu Efes Financial Highlights Turkey Beer International Beer Soft Drinks VOLUMES 108.8 Breakdown 110.9 mhl up 1.9% 5% 28% 67% REVENUE Breakdown 23.3 bn TL 53% up 21.9% 10% 38% EBITDA (BNRI) Excluding IFRS 16 Breakdown 3.9 bn TL up 31.2% 56% margin 16.8% 10% 35% 2018 proforma figures include ABI
Slide 6: Beer Operations
BEER OPERATIONS APPENDIX
Slide 7: Beer Operations At a Glance
Beer Operations At a Glance Since 1969 World’s Europe’s 10th* largest player 5th* largest player 6 operating 21 breweries Leader** countries in all countries +8,800 employees 100+ brands 70+ export countries *The Barth Report 2018/2019 **January-December 2019 Nielsen, Company Estimate Strictly Confi
Slide 8: Strong Positions in all Operating Geography
Strong Positions in all Operating Geography Kazakhstan: Turkey: Beer market size of 5.9 mhl1 Leading brewer Per capita consumption of 32 liters1 Per capita consumption of 11 liters1 #1 player Moldova: Russia: Beer market size of 1.1 mhl1 World’s 6th largest beer market Per capita con
Slide 9: Catalysts & Challenges
Catalysts & Challenges Low per capita consumption Developing economies Young populations Westernization/Urbanization Regulations Taxation Poor consumer confidence 9
Slide 10: Beer Group Strategic Priorities
Beer Group Strategic Priorities OPERATIONAL FINANCIAL PEOPLE BRANDS DISCIPLINE & CUSTOMERS & EXPANSION & EXCELLENCE STAKEHOLDERS VALUE CREATION CONSUMERS GROWTH Nurturing our Providing Building Achieve Enhancing Building Expanding our talents by choice, great competitive profitable Customer relation
Slide 11: Beer Group Volume Performance
Beer Group Volume Performance SALES VOLUME 34.2 36.2 mhl 28,5 30,8 5,7 5,4 2018 Turkey International 2019 SHARE* IN BEER VOLUME RUSSIA TURKEY UKRAINE KAZAKHSTAN 59% 15% 15% 6% *Breakdown is on a combined basis 11
Slide 12: Russian Beer Operations
Russian Beer Operations World’s 6th largest beer market* with 77 mhl market size Per capita consumption of 53 liters* 29.8 brewing capacity with CUR ~70% is the market leader with ~28% market share Clear market leader in Super Premium & Premium segments with upside potential in the rest
Slide 13: Market leadership in every international operation
Market leadership in every international operation… International Beer Strong volume performance in all international markets Margin 22.2% Russian beer market was almost flat 41.4% 4Q2019 Our volumes grew by high single digit 26.3% Successful integration & focus on net revenue growth 7.2%
Slide 14: Turkey Beer Operations
Turkey Beer Operations Low per capita consumption of 11 liters* offering a growth potential Growing population with 1.4% annual growth rate in 2019 Leading brewer** in the market 3 Breweries with 7.0 mhl capacity 2 Malteries & 1 Hops Processing Facility enabling vertical integration for ke
Slide 15: Beer market down mid-single digit in Turkey
Beer market down mid-single digit in Turkey… Turkey Beer 12,8% All FMCG sectors under pressure Margin Macro dynamics 4Q2019 18.0% Low consumer confidence -0.2% Beer market down mid-single digit Low affordability -7,1% Volume Revenue EBITDA Premium category expansion Continued to invest
Slide 16: Soft Drink Operations
SOFT DRINK OPERATIONS APPENDIX
Slide 17: A multinational beverage company – Coca-Cola Icecek
A multinational beverage company – Coca-Cola Icecek • 10 countries, ~400 mn people KAZAKHSTAN • 26 production plants with 126 lines AZERBAIJAN • 1.5 bn UC(1) annual production capacity KYRGYZSTAN TURKEY TURKMENISTAN TAJIKISTAN • ~780 thousand sales points SYRIA IRAQ • 1.3 bn UC sales volume JORDAN •
Slide 18: Successful track record of growth, with the right focus and excellence in execution
Successful track record of growth, with the right focus and excellence in execution VOLUME REVENUE EBITDA 4x 11% 10x 18% 12x 19% CAGR 2005-2019 CAGR 2005-2019 CAGR 2005-2019 Single country in Expanding into Central Asia and North JV in Pakistan in South Iraq in A regional bottler today… 2005… Iraq i
Slide 19: Rising performance…
Rising performance… Growth TL million 2019: Continuation of quality growth algorithm 2019: Highest free cash flow *Includes TFRS 15 adjustments 19
Slide 20: Strategic priorities in core business to create value
Strategic priorities in core business to create value Accelerate Win at the Exercise Financial Win with People Growth Point of Sale Discipline • Full-beverage portfolio • Increase outlet coverage • Productivity savings • Integrated Talent Strategy • Revenue Growth • Increase cooler penetration • Wor
Slide 21: CCI – Consolidated Volume Highlights
CCI – Consolidated Volume Highlights Volume (mn UC) 1,316 2018: 1,315 UC Volume Growth yoy Core Business Volume (mn UC) 1,207 2018: 1,200 Cycling Turkey Volume (mn UC) 6.3% in 2018 1 662 2018: 650 Turkey Core Business Volume (mn UC) 554 2018: 536 International Volume (mn UC) 1 654 2018:664 1Core bus
Slide 22: Stronger Sparkling & Still Category
Stronger Sparkling & Still Category 2019 Highlights Share in total volume (2019) Growth yoy 12M: 0.3% 12M: 5.1% 12M: 0.1% 12M: 4.9% SPARKLING STILLS WATER NRTD TEA • Cycling 6.8% growth in 12M2018 • Cycling 11.6% growth in 12M18 • Cycling 6.0% growth in 12M18 • Cycling -1.2% decline in 12M18 • Growt
Slide 23: Turkey: delivering ahead of expectations
Turkey: delivering ahead of expectations Favorable sales mix with a higher IC share in UC Volume Growth Sparkling → +2 pp yoy increase in 2019 6% increase in Low/No Sugar in 2019 31.1% growth in Low/No Sugar in 4Q19 On-premise channel supported volume growth throughout 2019 1 Continued media investm
Slide 24: Central Asia: outstanding performance
Central Asia: outstanding performance Kazakhstan & Azerbaijan UC Volume Growth yoy Double digit growth in all markets except Turkmenistan Strong consumer activations and successful market execution in Kazakhstan Share gains in all categories in Kazakshtan 14.4% excl Turkmenistan 34% growth i
Slide 25: Pakistan and Middle East: challenging macro conditions
Pakistan and Middle East: challenging macro conditions Pakistan & Iraq UC Volume Growth yoy Weak macroeconomic condition & tough competitive environment impacting growth Trademark Coca-Cola outperformed its segment in 12M19 Pakistan 12M19 Continued share gains in sparkling in Pakistan Strong
Slide 26: Financial Overview
FINANCIAL OVERVIEW APPENDIX
Slide 27: EBITDA margin expanded, outperforming guidance
EBITDA margin expanded, outperforming guidance… ANADOLU EFES BEER GROUP TURKEY BEER EBI 23.314 19.164 22% Net Sales 30% 11.069 8.541 32% 8.765 21% 6.633 1.870 2.255 2018 Proforma 2019 2018 Proforma 2019 2018 2019 2018 Proforma 2019 Margin: 35.4% 37.7% 38.1% 41.4% 56.4% 54.2% 32.6% 37.7% Gross Profit
Slide 28: Balance Sheet Discipline Maintained
Balance Sheet Discipline Maintained… Net Debt / EBITDA (BNRI)1 Maturity Schedule2 596 Anadolu Efes Consolidated 522 -61% of cash is hold as hard currency 1.5 M USD 236 times -80% of debt is in hard currency 141 1.0 (57% of our debt is hedged through 115 Net Investment Hedge and CCS) 98 FY2018 FY2019
Slide 29: Solid Cash Flow Generation
Solid Cash Flow Generation Topline growth & margin expansion Prudent Capex Spending Tight Working Capital Management Beer Group FCF Anadolu Efes FCF 2,335 TL million 1,294 376 TL million 70 45 2013 2019 2013 2019 29
Slide 30: 2020 Financial Priorities
2020 Financial Priorities CASH MANAGEMENT • Funding plan for 2020 is on track DEBT • Manage leverage ratios and maturity MANAGEMENT schedule • Manage FX & Commodity Exposure RISK MANAGEMENT • Working capital solutions EXPENSE • Zero Based Spending MANAGEMENT • Focus on Balance Sheet Health PRODUCTIV
Slide 31: Outlook
2020 APPENDIX OUTLOOK
Slide 32: Detailed 2020 Guidance
Detailed 2020 Guidance SALES VOLUME Consolidated grow by low-to-mid-single digit Total Beer grow by low-to-mid single digit Turkey Beer to be flat to grow by low-to-mid single digit while outperforming the market. The competitive environment became tougher within the last year and Russia we expect t
Slide 33: Thank You
THANK YOU APPENDIX