Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Q1 2019 Earnings Presentation
32 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, May 2019
Slide 1: May 2019 Investor Presentation
May 2019 Investor Presentation
Slide 2: Ownership Structure
Ownership Structure 100% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS Public 24% 33% -Turkey Beer Operations 3.0% -International Beer Operations (EBI) Public 26.7% 50% Russia 50.3% 100% Kazakhstan 96.9% Moldova 43% 100% Georgia 20.0% 50% Ukraine 2
Slide 3: Anadolu Efes At a Glance
Anadolu Efes At a Glance 690 mn consumers 10.7** billion litres sales volume 21 Breweries* & 26 Bottling Plants 18.7** billion TL sales revenue th Europe’s 6 , World’s 16 th largest brewer 3.1** billion TL EBITDA 6th largest Coca-Cola bottler 1.1** billion TL Free Cash Flow Strategic partnerships wi
Slide 4: Competitive Advantages
Competitive Advantages 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 Expertise & Know-how in driving cost efficienc
Slide 5: 1Q2019 Highlights
1Q2019 Highlights Unless stated otherwise, the figures from hereon are based on proforma numbers (including the ABI merger in Russia & Ukraine for 1Q2018) and excluding IFRS16 impact for 1Q2019. Volume growth of 12.7% on reported basis Revenue up by 46.5% on reported and 27.5% and 0.4%*on proforma b
Slide 6: Diversified Business Yielding Growth Despite Challenges
Diversified Business Yielding Growth Despite Challenges Excluding IFRS 16 EBITDA (BNRI) & SALES VOLUME NET SALES REVENUE EBITDA (BNRI) Margin 9.8% 9.4% 21.2 21.3 3,968.6 3,111.9 371.3 306.0 mn TL mn TL mhl 1Q2018 1Q2019 1Q2018 1Q2019 1Q2018 1Q2019 Proforma Proforma Proforma 1Q2018 1Q2019 1Q2018 1Q20
Slide 7: Beer Operations
ANADOLU EFES BEER OPERATIONS
Slide 8: Efes Beer Group Foundations
Efes Beer Group Foundations Vision Mission We brew joy, passionately and responsibly. Be the largest brewer from Adriatic to China by developing and owning social life and beer culture. Values • Passionate • Agile • Collaborative • Accountable • Fair Business Priorities Financial Discipline Operatio
Slide 9: Efes Beer Group At a Glance
Efes Beer Group At a Glance #1 Since 1969 16th 6th in our markets More than 80 brands Largest in the World Largest in Europe ~ 300m consumer Turkey, Kazakhstan Moldova, Georgia (Russia, Ukraine #2) 9.200+ Employees 80+ 6 21 Export countries Operation countries Breweries Turkey, Russia, Kazakhstan Mo
Slide 10: Markets With Low Per Capita Consumption & High Growth Potential
Markets With Low Per Capita Consumption & High Growth Potential Low per capita consumption Developing economies Per capita consumption (litre)* Turkey 11 Greece 36 Germany 100 USA 71 Canada 55 Young populations Ukraine 42 Serbia 65 Russia 57 Romania 98 Poland 100 29 Moldova Georgia 30 Czech Republic
Slide 11: Turkey Beer Operations
Turkey Beer Operations Low per capita consumption of 11 liters* offering a growth potential Growing population with 1.5% annual growth rate in 2018 47% is below age 30 Leading brewer** in the market 3 Breweries with 8.0 mhl capacity 2 Malteries & 1 Hops Processing Facility enabling verti
Slide 12: Russian Beer Operations
Russian Beer Operations World’s 5th largest beer market1 Per capita consumption of 57 liters1 Merged operations of AB InBev and Anadolu Efes on 1st April 2018 ABInbev Efes JV is head to head at market leadership Complementary brand portfolio with leading position in premium segment 11 br
Slide 13: Other International Beer Operations
Other International Beer Operations Ukraine: Moldova: Beer market size of 1.0 mhl1 Beer market size of 18.7 mhl1 Per capita consumption of 29 liters1 Per capita consumption of 42 #1 player liters1 Kazakhstan: Georgia: Beer market size of 5.5 mhl1 Beer market size of 1.1 mhl1 Per capi
Slide 14: Commitment to Environment
Commitment to Environment ENERGY AND EMISSIONS MANAGEMENT 15%+9% Compared to 2008, we consumed 15% less energy and generated 9% fewer greenhouse gas emissions per unit product. OPERATIONAL RELIABILITY 97% Trained Dealers and Distributors In 2017, we provided a 2 hour per person, 548 person/hours in
Slide 15: Solid Cash Flow Generation
Solid Cash Flow Generation Focus on profitability margins Smart Capex Planning Tight Working Capital Management Beer Group FCF Anadolu Efes FCF 1,054 443 TL million TL million 376 70 45 2013 2018 2013 2018 15
Slide 16: Soft Drink Operations
SOFT DRINK OPERATIONS Strictly Confidential 16
Slide 17: CCI is the 6th Largest Bottler in the Coca-Cola System
CCI is the 6th Largest Bottler in the Coca-Cola System, Operating in 10 Countries Overview • ~400 mn people KAZAKHSTAN • 26 production plants with 124 lines • 1.5 bn UC(1) annual production capacity AZERBAIJAN • ~920 thousand sales points KYRGYZSTAN TURKEY TURKMENISTAN TAJIKISTAN • 1.3 bn UC sales v
Slide 18: Coca-Cola İçecek – Opportunities
Coca-Cola İçecek – Opportunities NARTD Industry Value Growth & More Room to Diversify Product Opportunity Portfolio Share of Low/No Calorie in Sparkling Volume (2018) 18
Slide 19: Coca-Cola İçecek – Strategic Priorities
Coca-Cola İçecek – Strategic Priorities 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 • Working capital i
Slide 20: Financials & Outlook
FINANCIALS & OUTLOOK
Slide 21: FY Financials: Robust performance in a transformational year
FY Financials: Robust performance in a transformational year… ANADOLU EFES TOTAL BEER TURKEY BEER EBI 28% 18,690 Net Sales 14,587 30% 8,067 35% 6,195 18% 4,576 6,158 1,588 1,870 FY2017 Proforma FY2018 FY2017 Proforma FY2018 FY2017 FY2018 FY2017 Proforma FY2018 Margin: 38.4% 37.4% 45.7% 42.9% 59.2% 5
Slide 22: 1Q Financials: Operational Savings and Synergies Offset Input Cost Pressures
1Q Financials: Operational Savings and Synergies Offset Input Cost Pressures ANADOLU EFES TOTAL BEER TURKEY BEER EBI 28% Net Sales 3,969 3,112 36% 41% 1,279 1,740 21% 963 1,357 310 374 1Q2018 Proforma 1Q2019 1Q2018 Proforma 1Q2019 1Q2018 1Q2019 1Q2018 Proforma 1Q2019 Margin: 31.8% 30.7% 31.9% 30.0%
Slide 23: Leverage ratios at healthy levels despite currency devaluations
Leverage ratios at healthy levels despite currency devaluations… Net Debt / EBITDA (BNRI) Maturity Schedule* 515 Anadolu Efes Consolidated 500 1.7 -65% of cash is hold as hard currency 193 M USD 1.6 times 166 -82% of debt is in hard currency 141 123 (58% of our debt is hedged through Net Investment
Slide 24: Balance Sheet FX Exposure Mitigated
Balance Sheet FX Exposure Mitigated... Hedged majority of outstanding debt via various instruments; both at Anadolu Efes & Beer Group level December 2018 March 2019 Anadolu Efes 58% of our debt is hedged Unhedged Hedged Unhedged through Net Investment Hedged 42% 42% 58% 58% Hedge and CCS as of 1Q201
Slide 25: Input costs & FX exposures are tightly monitored
Input costs & FX exposures are tightly monitored… • Cash flow hedge via designation • ~ 90%* of FX exposure in COGS&OPEX hedged in Turkey for 2019 Hedged • ~ 100% hedged in Russia & Ukraine positions for 70%** 100% 2019* • Derivative contracts to hedge LME Aluminium Prices commodities 1,903 1,899 Tu
Slide 26: Financial priorities are on track
Financial priorities are on track… Productivity P&L & FCF Management Generation Debt Risk Management Management Cash Management 26
Slide 27: 2019 Guidance
2019 Guidance • Cautious volume outlook on sales volumes • Efficient revenue management to offset volume pressures resulting in solid growth in all business lines • Slight improvement in both Beer & Soft Drink EBITDA margins to result in slight improvement in AEFES consolidated EBITDA margin • Stron
Slide 28: Appendix
APPENDIX
Slide 29: Detailed 2019 Guidance
Detailed 2019 Guidance Our 2019 guidance reflects reported financials where 2018 numbers include 9-months ABI-Efes impact and 2019 expected numbers include 12-months. Reference to “proforma” means 12 month ABI-Efes impact in 2018. REPORTED PROFORMA SALES VOLUME Consolidated low to mid-single digit g
Slide 30: Corporate Structure
Corporate Structure 100% Efes Breweries International 50% 50% 100% 100% 98% Legal merger to be completed in due course 100% AB INBEV EFES BV: Equal board representation 96.9% Chairman of the Board appointed by Anadolu Efes CEO & CFO appointed by BoD Governance rights enables AEFES to fully c
Slide 31: Thank You
THANK YOU
Slide 32: May 2019 Investor Presentation
May 2019 Investor Presentation