Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Q1 2022 Earnings Presentation
31 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, May 2022
Slide 1: Anadolu Efes Investor Presentation
ANADOLU EFES INVESTOR PRESENTATION May 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 7.0TL 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 OPER
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 COLLOBRATIVE 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: More Room for Growth with Lower Per Capitas
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 13: Volumes exceeding expectations in 1Q
Volumes exceeding expectations in 1Q… Consolidated Beer Operations’ Volumes* Volumes* 14% reported growth 5% growth International : +4% 9% organic** growth Domestic: +17% Ukraine Turkey CIS 5% 11% 11% 29% Soft drinks Beer Group 71% 73% Russia *Y-o-y changes **Organic refers to sales volume excluding
Slide 14: 1Q Highlights
1Q Highlights Russia CIS • Own volumes up mid-teens • Volumes up by low-to-mid single digits • Customers’ pre-buying due to; • Kazakhstan started the year with some tension grew • Expectations of subsequent significant price by low single digit y-o-y adjustments • Mid-single digit growth in Moldova
Slide 15: Soft Drinks
SOFT DRINKS
Slide 16: 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 17: Soft Drinks 1Q Highlights
Soft Drinks 1Q Highlights • Volume growth of 18% reported • Turkey volume grew by 2% • 10% growth organically* • Highest ever 1Q RTD beverages performance • Sparkling category growth of 16% • Juice and iced tea growth, recovery at on-trade • Coca-ColaTM grew by 15% channel & segmented marketing camp
Slide 18: 1Q2022 Consolidated Financial Overview
1Q2022 CONSOLIDATED FINANCIAL OVERVIEW
Slide 19: Well-balanced topline & profitability performance
Well-balanced topline & profitability performance NET REVENUE EBITDA BNRI (%) NET INCOME FREE CASH FLOW Anadolu Efes 1Q 1Q 1Q 1Q TL 13,769 mn TL 2,251 mn TL -132 mn TL -702 mn +124% Margin: 16.3% (Excl. Impairment: TL 273.6m ) (+474 bps) • Strong volume performance • Robust gross profitability; • In
Slide 20: Financials
Financials Anadolu Efes Beer Group mn TL mn TL 1Q2021 1Q2022 Change 1Q2021 1Q2022 Change Sales Revenue 6,159 13,769 123.5% Sales Revenue 2,412 5,104 111.6% Gross Profit 1,952 4,787 145.2% Gross Profit 693 1,945 180.8% EBITDA (BNRI) 715 2,251 214.7% EBITDA (BNRI) -47 453 n.m. Free Cash Flow -251 -702
Slide 21: Improved Profitability & Free Cash Flow Generation
Improved Profitability & Free Cash Flow Generation Beer Group EBITDA (BNRI) Bridge Free Cash Flow Bridge mn TL mn TL +500 mn +483 mn +40% +19% Improvement in cash -107.2 -300.4 generation driven by 417.1 +37% -326.5 higher profitability, 452.6 959.0 -349.5 -105.9 superior payables 190.9 500.0 perfor
Slide 22: Balance Sheet & Risk Management
Balance Sheet & Risk Management Beer Group Hedges**: Anadolu Efes Cash Profile Debt Profile Commodity: 25% 21% TL 16.1 bn TL 29.8 bn Aluminum: 73% Effective use of ($1.1 bn) ($2.0 bn) hedging tools 75%* 79%* PET/Resin: 92% mitigate the *hard currency Barley: 84% Average maturity: 3.9 years Net Debt/
Slide 23: 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 24: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES
Slide 25: 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 26: 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 27: Revised 2022 Outlook
FR Revised 2022 OUTLOOK Alas ASW ERNIE, — Male > —_ [o} a <x Zz < EFES
Slide 28: Resilient Performance Despite Headwinds; Guidance Largely Maintained
Despite uncertainties Resilient Performanceahead, Despite Headwinds guidance is largely maintained… Despite lost volumes from UKRAINE, our revenue and EBITDA margin guidance stays the same, as a result of higher price adjustments than previously planned. ANADOLU EFES BEER GROUP SOFT DRINKS GROUP Mid
Slide 29: Sustainability
SUSTAINABILITY
Slide 30: 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 31: Thank You
ANADOLU EFES THANK YOU