Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Citi Turkish Conference 2021
25 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's conference presentation, Jan 12, 2021
Slide 1: Anadolu Efes Investor Presentation
ANADOLU EFES INVESTOR PRESENTATION Citi Turkish Conference 2021 January 12, 2021
Slide 2: Anadolu Efes At a Glance
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Slide 3: A regional beverage company with diversified businesses
A regional beverage company with diversified businesses… Europe’s In FY2019; 700 mn 48.4 mhl 5th* 111 mhl Population Brewing Sales Volume Capacity World’s 21 10th* 23.3bn TL Breweries Largest Sales Revenue 1.5 bn u/c Brewer 26 Bottling 4.1bn TL Bottling Plants Capacity 7th EBITDA Largest Coca-Cola 2
Slide 4: Solid, consistent financial performance with strong track record
Solid, consistent financial performance with strong track record… Diversified business model Strategic Partnership with World’s leading FMCG companies; AB InBev & including beer and soft drinks TCCC Strong brand portfolio including some of the Strong market positions across all world’s best known br
Slide 5: Maximizing value of our business: Capital Allocation Priorities
Maximizing value of our business… Maximizing Maintaining a Maximizing Investing in organic growth healthy balance shareholder inorganic growth sheet value Invest in brands, Leverage market and capacity Net Debt/EBITDA: Dividend pay-out acquisition 1.0x - 2.0x ratio of min. 40% opportunities Capital
Slide 6: Volume Performance
2020 Volume Performance
Slide 7: Resilient volume performance in FY2020, despite headwinds
Resilient volume performance in FY2020, despite headwinds… ANADOLU EFES CONSOLIDATED SALES VOLUME 104.7 103.5 20.1 21.1 4Q2019 4Q2020 FY2019 FY2020 Beer Operations Soft Drink Operations FY2020 volume slightly up 0.2% FY2020 volume slightly down 1.9% International volume up 2.6% in FY2020 Vol
Slide 8: 3rd consecutive year of volume growth in Russia
3rd consecutive year of volume growth in Russia… Beer Sales Volume Volume Breakdown* CIS Turkey Turkey International 10% 13% 36.2 36.2 8.6 8.2 4.6 5.4 1.3 1.1 mhl 7.3 30.8 31.6 7.1 Russia & Ukraine 77% 4Q2019 4Q2020 FY2019 FY2020 *Breakdown on combined basis Turkey Operations International Operation
Slide 9: Volume growth in 4Q across the board
Volume growth in 4Q across the board… Soft Drinks Sales Volume Volume Breakdown By Country Turkey International Azerbaijan Others Iraq 4% 4% 9% 227 1,208 1,184 203 Kazakhstan 12% 43% Turkey 106 654 672 m u/c 99 104 121 554 512 27% 4Q2019 4Q2020 FY2019 FY2020 Pakistan *Breakdown on combined basis Tur
Slide 10: 3Q Financial Review
3Q Financial Review
Slide 11: Robust financial performance in 3Q
Robust financial performance in 3Q… VOLUMES Volume growth driven by both business segments 3Q 9M International beer volumes grew by 6.2%; mostly driven by Russia +2.5% -2.7% Turkey beer volume showed a significant improvement compared to 1H REVENUE Price increases & revenue growth management
Slide 12: Margin expansion delivered across the board
Margin expansion delivered across the board… NET FREE CASH VOLUME EBITDA BNRI EBITDA BNRI% REVENUE FLOW +47.8% +22.0% ANADOLU 3Q 9M 3Q 9M 3Q 9M 3Q 9M EFES 1,413 2,088 3,184 3,885 mTL 32.8 mhl 82.4 mhl 8,740 mTL 20,324 mTL 23.9% 19.1% 1,904 mTL 2,896 mTL +2.5% vs. PY -2.7% vs. PY +24.2% vs. PY +12.5%
Slide 13: Solid financial discipline maintained
Solid financial discipline maintained… Net Debt / EBITDA : Record low core working capital… CWC / Revenue; Beer Group: 1.3x (9M2019: 1.3x) Anadolu Efes: 0.8x (9M2019: 1.2x) Beer Group: -16.9% Anadolu Efes: -6.4% P&L risk management… Average debt maturity; Currency 71% Hedged (2021) Beer Group: 1.7 y
Slide 14: Expectations
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Slide 15: Over-delivered our beer group volume guidance
Over-delivered our beer group volume guidance… EBITDA Capex / Free Cash Volumes Margin Net Sales Flow Decline by mid-single EBITDA margin Will not exceed Positive Free Cash digit on annual basis contraction in FY previous year’s Flow to be less than 1H level In FY2020, beer volume growth of 0.2% s
Slide 16: Appendix
Appendix
Slide 17: Shareholder Structure
Shareholder Structure 100% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS Public -Turkey Beer Operations 24% -International Beer Operations (EBI) 1.9% Public 50% Russia 50.3% 100% Kazakhstan 96.9% Moldova 43% 100% Georgia 50% Ukraine 17
Slide 18: Beer Operations
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Slide 19: Strategic priorities in Beer Group to drive value
Strategic priorities in Beer Group to drive value… FINANCIAL OPERATIONAL DISCIPLINE & CUSTOMERS & EXPANSION & PEOPLE BRANDS STAKEHOLDERS EXCELLENCE VALUE CONSUMERS GROWTH CREATION Nurturing our Providing Building Achieve Enhancing Building Expanding our talents by choice, great competitive profitabl
Slide 20: Beer Group in a Nutshell
Beer Group in a Nutshell • 6 countries, ~300 mn population • 21 Breweries, 100+ brands • 48.4 mhl brewing capacity, 70+ export countries • 11.1 bn TL revenue* & 1.7 bn TL EBITDA* • Market leader in all operations RUSSIA UKRAINE KAZAKHSTAN MOLDOVA GEORGIA TURKEY Volume Breakdown* Revenue Breakdown* E
Slide 21: Russian Beer Operations
Russian Beer Operations Russian beer market was almost flat in 2019 & our 01 volumes grew by high single digit Became market leader with ~30% market share & clear 02 market leader in Super Premium & Premium segments 03 Successful integration & focus on net revenue growth Focus on premium brands whil
Slide 22: Turkey Beer Operations
Turkey Beer Operations Low per capita consumption of 11 liters* Rich portfolio of local, imported & licensed offering a growth potential brands covering all segments #1 in consumer spending in Food & Beverage Growing population with 1.4% annual category growth rate in 2019 99% penetration in alcohol
Slide 23: Soft Drink Operations
Soft Drink Operations
Slide 24: Strategic Priorities In Soft Drink Operations to Drive Value
Strategic Priorities In Soft Drink Operations to Drive 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 penetrati
Slide 25: Coca-Cola Icecek in a Nutshell
Coca-Cola Icecek in a Nutshell • 10 countries, ~400 mn people • 26 production plants with 126 lines KAZAKHSTAN • 1.5 bn UC(1) annual production capacity AZERBAIJAN KYRGYZSTAN • ~780 thousand sales points TURKEY TURKMENISTAN TAJIKISTAN • 1.3 bn UC sales volume SYRIA IRAQ • $ 2.2 bn revenue & $ 403 mn