East African Breweries Plc · NSEKE:EABL
East African Breweries — FY2012 Earnings Presentation
25 slides from East African Breweries's earnings presentation, Aug 24, 2012
Slide 1: EABL F12 Full Year Results Investor Briefing
DIAGEO EABL F12 Full Year Results Investor Briefing Charles Muchene, Group Chairman Devlin Hainsworth, Group Managing Director Tracey Barnes, Group Finance Director 24th August 2012
Slide 2: Outline of the Full Year Results Briefing
DIAGEO Outline of the Full Year Results Briefing • Introduction Charles Muchene • F12 Full Year Review Devlin Hainsworth • Financial Performance Tracey Barnes • Outlook and Summary Devlin Hainsworth • Q&A 2
Slide 3: Introduction
DIAGEO Introduction Charles Muchene, Chairman
Slide 4: F12 Full Year Review
DIAGEO F12 Full Year Review Devlin Hainsworth, Group Managing Director & CEO
Slide 5: EABL is well-positioned to win in Eastern Africa
DIAGEO EABL is well-positioned to win in Eastern Africa Vision Statement EABL will be the most celebrated business in every market in Eastern Africa • History in this region since 1922 • Brands across Total Beverage Alcohol covering all consumer price points • Commitment to significant investment ac
Slide 6: We have a clear strategy and continue to invest behind it
DIAGEO We have a clear strategy and continue to invest behind it Strategic Objectives Winning in Beer Spirits Transformation Geographic Expansion Enablers Supply Route to Market Winning Organisation 6
Slide 7: Significant investments behind Winning in Beer
DIAGEO We have made significant investments behind Winning in Beer • Flagship brands in key markets • 3 Innovation launches: • Tusker Lite, Pilsner Ice, Windhoek • 2 major brand renovations: • Premium Serengeti Lager, Pilsner • Market-leading brand campaigns • Emphasis on digital Tusker +17% Guinnes
Slide 8: Great progress on Spirits Transformation
DIAGEO We have made great progress on Spirits Transformation • Market-leading brands across key segments • 3 major brand renovations: • Richot, Waragi Gin, Smirnoff • Increased A&P • Increased salesforce capability and focus Johnnie Walker +74% Richot +40% Smirnoff +55% Spirits Net Sales +47% 8
Slide 9: Invested in Geographic Expansion
DIAGEO We have invested in Geographic Expansion • Pan-regional brand activity • Roll-out of Senator • Tusker Project Fame 5 • Guinness • Small SKUs of Premium Spirits • Increased distributor and sales network Uganda Net Sales +38% Tanzania Net Sales +76% EABLi Net Sales +30% 9
Slide 10: Major investments in our Supply base
DIAGEO We have made major investments in our Supply base • Efficiency, quality and availability • Capex investment • Moshi Brewery • Uganda Mash Filter • Kenya Canning Line • Cost control • Local sourcing 10
Slide 11: Continue to optimise our Route to Market
DIAGEO We continue to optimise our Route to Market • Increased outlet coverage of 5% over the year • Salesforce headcount +12% • Spirits distribution investments • Rolled out tools for our customers: • Platform for Growth • Distributor Management System • Master Bartender Academy 11
Slide 12: Building a Winning Organisation is our third Enabler
DIAGEO Building a Winning Organisation is our third Enabler • Talent initiatives • Early Career Programme • Growing Leaders Programme • Reputation initiatives • Water of Life • Responsible Drinking • Skills for Life • Environment 12
Slide 13: Delivered a strong set of results across the P&L
DIAGEO We have delivered a strong set of results across the P&L F12 FY vs F11 Net Sales +24% Gross Profit +22% Selling Costs (incl A&P) +31% Operating Profit +21% 13
Slide 14: F12 Full Year Financial Update
DIAGEO F12 Full Year Financial Update Tracey Barnes, Group Finance Director
Slide 15: EABL Group Consolidated Income Statement
DIAGEO EABL Group Consolidated Income Statement Financial Report for the year ended 30 June 2012 EABL Consolidated Income Statement 30-Jun-2012 30-Jun-2011 Kshs’000 Kshs’000 Growth % Revenue 55,522,166 44,895,037 24% Cost of sales (28,657,047) (22,828,144) 26% Gross profit 26,865,119 22,066,893 22%
Slide 16: Strong sales growth across our portfolio
DIAGEO We have delivered strong sales growth across our portfolio +17 % +11 % +49% +23% +53% +74% +55% +40% +37% 16
Slide 17: Strong sales growth across the region
DIAGEO We have also delivered strong sales growth across the region Net Sales growth versus last year Kenya +16% Uganda +38% EABLi +30% Tanzania +76% 17 F12 compared to F11 (NB compares 12 months of Tanzania sales in F12 vs 8 in F11)
Slide 18: EABL Group Consolidated Income Statement
DIAGEO EABL Group Consolidated Income Statement Financial Report for the year ended 30 June 2012 EABL Consolidated Income Statement 30-Jun-2012 30-Jun-2011 Kshs’000 Kshs’000 Growth % Revenue 55,522,166 44,895,037 24% Cost of sales (28,657,047) (22,828,144) 26% Gross profit 26,865,119 22,066,893 22%
Slide 19: EABL Group Consolidated Income Statement
DIAGEO EABL Group Consolidated Income Statement Financial Report for the year ended 30 June 2012 EABL Consolidated Income Statement 30-Jun-2012 30-Jun-2011 Kshs’000 Kshs’000 Growth % Revenue 55,522,166 44,895,037 24% Cost of sales (28,657,047) (22,828,144) 26% Gross profit 26,865,119 22,066,893 22%
Slide 20: Proposed dividends
DIAGEO Proposed dividends Proposed Dividends - Kshs Interim Dividend 2.50 Final Dividend 6.25 Total Dividend 8.75 20
Slide 21: Outlook & Summary
DIAGEO Outlook & Summary Devlin Hainsworth Group Managing Director & CEO
Slide 22: Our key priorities going forward
DIAGEO As we look forward our key priorities will be • Invest to win share of beer across the region • Accelerate topline net sales growth ahead of the market through Spirits and Innovation – Premiumisation – Female Opportunity – Emerging sector • Increase Supply and Route to Market availability and
Slide 23: We continue to feel positive about the future of EABL
DIAGEO We continue to feel positive about the future of EABL • Attractive economic fundamentals • Consumer trends in our favour • EABL well positioned to win 23
Slide 24: Q & A Session
DIAGEO ( eabl nn Q & A Session 24
Slide 25: Thank You
DIAGEO Thank You
East African Breweries — FY2012 Earnings Presentation on 6ix