Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (November 2021)
40 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, November 2021
Slide 1: Anadolu Efes Investor Presentation November 2021
ANADOLU EFES INVESTOR PRESENTATION November 2021
Slide 2: Anadolu Efes At a Glance
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Slide 3: A regional beverage company…
A regional beverage company… Europe’s In FY2020; 5th* 700 mn 54.3 mhl 103.5 mhl Population Brewing World’s Sales Volume Capacity 10th* 21 Largest 26.7 bn TL Breweries Brewer Sales Revenue 1.8 bn u/c 29 Bottling Among 5.1bn TL Bottling Plants Capacity Top 10 EBITDA Largest Coca-Cola 3.0 bn TL Bottler
Slide 4: …through its diversified businesses…
…through its diversified businesses… 100% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS Public -Turkey Beer Operations 24% -International Beer Operations (EBI) 1.5% Public 50% Russia 28.1% 100% Kazakhstan 50.3% 96.9% Moldova 20.1% 43% 100% Georgia 50% Ukraine 4
Slide 5: …with a solid track record of profitable growth…
…with a solid track record of profitable growth… TOTAL VOLUME REVENUE EBITDA & FREE CASH FLOW mhl TL bn Margin % TL mn CAGR CAGR CAGR CAGR +21.2% +23.6% 19.1% +36.4% +3.7% 17.3% 103.5 26.7 5,098 3,012 86.1 10.2 1,766 638 2015 2020 2015 2020 2015 2020 2015 2020 2020 2020 2020 4% 2020 9% 7% 6% 8% 10%
Slide 6: …and a solid investment theme
…and a solid investment theme Diversified business model Strategic Partnerships with World’s leading FMCG companies; AB InBev & including beer and soft drinks TCCC Strong brand portfolio including some Strong market positions across all of the world’s best known brands and operations strong regional
Slide 7: Beer Operations
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Slide 8: Beer Group in a Nutshell…
Beer Group in a Nutshell… 6 countries 21 Breweries, 100+ brands RUSSIA 54.3 mhl brewing capacity, 70+ export countries 36.2 mhl beer volume UKRAINE KAZAKHSTAN 12.3 bn TL revenue* & 1.9 bn TL EBITDA* MOLDOVA GEORGIA TURKEY Leadership in all operations Volume Breakdown* Revenue Breakdown* EBITDA Break
Slide 9: …leading position with potential market growth…
…leading position with potential market growth… RUSSIA UKRAINE TURKEY KAZAKHSTAN GEORGIA MOLDOVA Market Position 1 1 1 1 1 1 # Breweries 11 3 3 2 1 1 Brewing Capacity (in mhl) 33.5 7.7 7.0 2.6 2.01 1.51 Beer Market Size (in mhl) 73.0 16.4 8.7 5.3 1.1 1.0 Per Capita Beer Consumption (in liter) 51 41
Slide 10: …with strategic priorities to drive value
…with strategic priorities 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 profitable growth
Slide 11: 9M2021 Beer Group Performance
9M2021 Beer Group Performance
Slide 12: Robust volume performance in international beer
Robust volume performance in international beer BEER GROUP INTERNATIONAL BEER TURKEY BEER VOLUME SALES VOLUME SALES VOLUME SALES VOLUME BREAKDOWN* 13% Turkey 29.2 24.5 25.5 CIS mhl 28.0 mhl mhl 3.7 11% 3.5 10.6 11.1 8.9 9.5 1.6 1.6 76% Russia 3Q20 3Q21 9M20 9M21 3Q20 3Q21 9M20 9M21 3Q20 3Q21 9M20 9M
Slide 13: Winning brand portfolio in Russia and Ukraine
Winning brand portfolio in Russia and Ukraine Focus on Global Brands Super Premium & Premium Increasing share in Growth Growth Non-Alcohol Beer RUSSIA Expanding Non-Alcohol Beer Development of Non-Beer Growth in Global Brands Portfolio Segment UKRAINE 13
Slide 14: Value generating initiatives in CIS Countries
Value generating initiatives in CIS Countries Sustaining Market Strengthening Growing Leadership Core & Premium Brands Non-Alcohol Beer New Packs & Multipacks Digitalization Launch of New Flavored beer 14
Slide 15: Continued focus and brand investments in Turkey
Continued focus and brand investments in Turkey Stabilization of Portfolio Premiumisation Increasing Visibility Launch of New Category/ New Packs & Multipacks Marketing Activations Seasonal & New Flavored beer 15
Slide 16: Soft Drink Operations
Soft Drink Operations
Slide 17: Coca-Cola Icecek in a nutshell…
Coca-Cola Icecek in a nutshell… • 11 countries, ~430 mn people* • 29 production plants with 146 lines* • 1.8 bn UC(1) annual production capacity* • ~876 thousand sales points* • 1.3 bn UC sales volume* • 14.4 bn TL revenue & 3.1 bn TL EBITDA • Higher contribution from international operations 9% SPA
Slide 18: …with clear priorities to create value
…with clear priorities to create value 18
Slide 19: 9M2021 Soft Drink Performance
9M2021 Soft Drink Performance
Slide 20: Continued topline growth in soft drinks
Continued topline growth in soft drinks SOFT DRINKS VOLUME SALES VOLUME BREAKDOWN* Middle East 9% 1,109 957 CIS 467 19% m u/c 435 45% Turkey 390 406 170 195 551 642 221 241 27% 3Q2020 3Q2021 9M2020 9M2021 Pakistan Turkey International Turkey Operations International Operations • Turkey volume growth
Slide 21: Turkey: Robust Growth Momentum in All Categories
Turkey: Robust Growth Momentum in All Categories 21
Slide 22: International: Resilient Operational and Financial Results
International: Resilient Operational and Financial Results 22
Slide 23: 9M2021 Consolidated Financial Overview
9M2021 Consolidated Financial Overview
Slide 24: Sustained solid momentum in the most important quarter
Sustained solid momentum in the most important quarter NET REVENUE Solid volume performance & price increases in both business lines REVENUE 3Q 9M NET Favorable mix & premiumization in beer group +34.9% +39.4% RGM actions and better discount management in soft drinks EBITDA BNRI MARGIN 3Q 9M Increas
Slide 25: Robust topline growth in a challenging cost environment…
Robust topline growth in a challenging cost environment… NET REVENUE EBITDA BNRI EBITDA BNRI% FREE CASH FLOW VOLUME +32.3% ANADOLU +12.8% 3Q 9M 3Q 9M 3Q 9M 3Q 9M EFES 715 mTL 5,141 v +139.4% PY v 3,885 2,356 2,088 vs. 35.8 mhl 92.2 mhl 11,787 mTL 28,334 mTL 20.0% 18.1% 2,295 mTL 4,248 mTL +9.2% vs.
Slide 26: …with a successful cash generation despite a high base…
…with a successful cash generation despite a high base… Beer Group 625 -533 EBITDA (BNRI) Bridge -116 58 717 682 mTL Net Cost of Selling, Other 3Q2020 Revenue Sales Marketing 3Q2021 and G&A expenses 106 -126 Free Cash Flow 444 37 -26 435 Bridge mTL EBITDA Changes CAPEX, net Taxes & 3Q2021 3Q2020 in
Slide 27: …by sticking to prudent financial policy…
…by sticking to prudent financial policy… Cash Profile Debt Profile Debt Maturity Profile TL 4.7 bn (USD 530 mn) TL 8.2 bn (USD 899 mn) Net Debt / EBITDA Weighted Ave. Maturity: 4.1 yrs BEER GROUP 3% 17% 13% 3% 4% 500 1.7 (mn USD) 5% 4% 1.3 280 77% 76% 119 USD EUR RUB KZT Other USD RUB UAH TL 2021 2
Slide 28: …benefitting from effective risk management
…benefitting from effective risk management Turkey 2021*: 100% 2021*: 78% 2022*: 29% 2022*: 50% Commodity Hedges FX Hedges 2021*: 100% 2022*: 76% 2021*: 100% 2022*: 64% *As of October 2021 28
Slide 29: Going Forward and 2021 Outlook
Going Forward and 2021 Outlook
Slide 30: Maximizing value of our business…
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 31: …driven by commitment to sustain profitable leadership
…driven by commitment to sustain profitable leadership Market Investments Revenue / hl Drivers • Cooler investments • Price increases • Distribution effectiveness • Premiumization • Digitalization • Discount management • Right portfolio mix & channel mix Brand Investments Cost and Expense Management
Slide 32: 2021 Revised Outlook
2021 Revised Outlook VOLUME SALES REVENUE continuing impact of pandemic FX-Neutral basis Consolidated: Beer Group: Soft Drinks: Consolidated: Beer Group: Soft Drinks: Mid-to-high Low-single Low-to-mid teens High-teens to low Low-teens High twenties to single digits digit digit growth twenties growth
Slide 33: Sustainability
Sustainability
Slide 34: Our Commitments – Road to 2030
Our Commitments – Road to 2030 Targeting Zero Increasing Getting Stronger For the environment Our support for social Through diversity & impact inclusion We love the Earth. We’re aiming zero We will increase our social impact through mid We believe in diversity & equality through environmental impac
Slide 35: Appendix
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Slide 36: Russian Beer Operations
Russian Beer Operations World’s 6th* largest beer market with 73 mhl market size; 01 Russian beer market grew by low single** digit in 2020 & our volumes grew by mid-single digit Sustained both volume and value leadership & clear market 02 leader in Super Premium & Premium segments Focus on premium
Slide 37: Turkey's largest brewer
Turkey’s largest brewer 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 1.2% CAGR in category 2015-2020 99% penetration in alcohol selling
Slide 38: Sustainable free cash flow
Sustainable free cash flow Beer Group Anadolu Efes +121% +47% 1,519 4,248 1,293 3,012 2,896 mTL mTL CAGR 793 36% 2,335 687 551 539 443 1,315 376 1,030 1,054 638 2015 2016 2017 2018 2019 2020 9M20 9M21 2015 2016 2017 2018 2019 2020 9M20 9M21 38
Slide 39: Increasing dividend yields
Increasing dividend yields Gross Dividend per Share (TL per 100 shares) Dividend Dividend yield: yield: 8.3%* 7.7% TL 1.93 TL 1.77 Dividend yield: Dividend Dividend 2.4% yield: yield: 2.0% 1.8% Dividend Dividend yield: TL 0.46 yield: 1.4% TL 0.51 1.3% TL 0.42 TL 0.25 TL 0.25 2014 2015 2016 2017 2018
Slide 40: Thank You
THANK YOU