Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q4 2019 Earnings Presentation
23 slides from Varun Beverages's earnings presentation, Feb 7, 2020
Slide 1: Regulation 30 cover letter to stock exchanges
Ifcorp V R R U n BEVERA G ES LffTMCED _ 1 C orporate O ff : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E -m a il: info@ rjcorp.in • Visit us a t : www.varunpepsi.com CIN No. : L74899DL1995PLC069839 February 7, 2020 To,
Slide 2: Varun Beverages Limited Q4 & CY 2019 Results Presentation
February 07, 2020 (a PepsiCo franchisee) Varun Beverages Limited Q4 & CY 2019 Results Presentation
Slide 3: Disclaimer
Disclaimer (a PepsiCo franchisee) This presentation has been prepared by Varun Beverages Limited (the "Company") for general information purposes only and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or i
Slide 4: Table of Content
Table of Content (a PepsiCo franchisee) Company Overview Chairman’s Message Q4 & CY 2019 Results Overview Performance Highlights Awards, Sustainability i 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the beverage industry Pathankot Him* Operations spanning across 6 countries - 3 in Chandigarh Greater Noida I & II Haryana — Uttarakhand the Indian Subcontinent (India, Sri Lanka, Sikkim Nepal) contribute -85% to revenues; 3 in Rajasthan Bhiwadi
Slide 6: Brands licensed to VBL
Brands licensed to VBL (a PepsiCo franchisee) Brands licensed by PepsiCo: Dairy Based Drinks Carbonated Soft Drinks Q) pepsi. '/ black cfier p e p si Mango Shake Carbonated Juice Based Drinks Energy Drink Club Soda Ice Tea EVtRVESS Cold Fruit Pulp / Juice Based Drinks Coffee Iropicana Troptcana ; ;.
Slide 7: Key Player in the Beverage Industry - Business Model
Key Player in the Beverage Industry - Business Model (a PepsiCo franchisee) VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN MANUFACTURING ---- 1 Concentrate Other Raw (PepsiCo) Materials Bottling ■ 38 state-of-the-art production facilities SOLID INRASTRUCTURE 90+ depots DISTRUBUTION & WAREHOUSING 2,500
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL - Demand Delivery PepsiCo - Demand Creation Production Facilities ■ Trademarks Sales & Distribution - GTM & Logistics ■ Formulation through Concentrate ■ In-outlet Management - Visi-Coolers ■ Product & Packaging innovation through invest
Slide 9: Chairman's Message
Chairman's Message (a PepsiCo franchisee) Commenting on the performance for Q4 & CY 2019, Mr. Ravi Jaipuria, Chairman - Varun Beverages Limited said, “I am happy to share that 2019 has been a year of solid operational and financial consolidation. We have delivered a topline growth of 40%, EBITDA gro
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Acquisition of sub-territories February 14, 2019: Concluded the acquisition of PepsiCo India’s previously franchised territories of parts of Maharashtra (14 districts), parts of Karnataka (13 districts) and parts of Madhya Pradesh (3 districts). May 01, 201
Slide 11: Key Developments
Key Developments (a PepsiCo franchisee) 4. QIP Issue: T he Company has raised ~ Rs. 9,000 million through fresh issue of 14,705,882 equity shares of Rs. 10. The QIP proceeds (net of issue expenses) of Rs. 8,836 million have been utilized for repayment of debts during Q3 2019. 5. Credit Rating Upgrad
Slide 12: Performance Highlights (Q4 & CY 2019)
Performance Highlights (Q4 & CY 2019) (a PepsiCo franchisee) Net Sales EBITDA PAT 57.5% 39.7% 43.8% c O 4,722 Rs. million 71 £ !6 ^ 14,477 o 51,053 ll 142.2% 10,066 55.3% E 1 o 12,202 478 ^ 1,157 1 1 19 .7 % 20 .3 % V) -708 -540 7,856 1 9 . 1% 1 ■ . m ' M , m , 6 . 1% Q4 2018 Q4 2019 2018 2019 Q4 20
Slide 13: Performance Highlights (2015 - 2019)
Performance Highlights (2015 - 2019) (a PepsiCo franchisee) ■ Revenue 71,296 ^■PAT —♦— PAT Margins 4,722 Rs. million 33,491 1 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA — EBI TDA Margins (%) ^ ■ N e t Worth ♦ Net D/E CAGR (2015-19) 115-19) - 22.9% 20'3% CAGR (2015-19) - 55.5% 14,477 20
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2019 Q4 2018 YoY(%) 2019 2018 YoY (%) 1. Income (a) Revenue from operations 12,395.4 8,041.4 54.1% 72,484.6 52,281.3 38.6% (b) Excise Duty 192.9 185.2 4.2%__ 1,188.8 1,228.7 -3.2% Net Revenues 12,202.5 7,856.2 5
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs million) 31-Dec-19 31-Dec-18 Particulars (Rs million) 31-Dec-19 31-Dec-18 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 2,886.89 1,826.42 (a) Property, plant and equipment 58,925.03 38,601.77 (b) Oth
Slide 16: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Net Revenues / Sales Volumes • Total sales volumes were up 80.7% YoY at 82.5 million cases in Q4 2019 as compared to 45.6 million cases in Q4 2018. For CY 2019, total sales volumes were up 44.9% YoY at 492.7 million cases in 20
Slide 17: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 32,461 million as on Dec 31, 2019 as against Rs. 26,715 million as on Dec 31,2018. Debt : Equity ratio stood at 0.97x and D e b t: EBITDA ratio stood at 2.24x as on Dec 31,2019. • CR
Slide 18: Awards & Accolades
Awards & Accolades (a PepsiCo franchisee) Varun Beverages Ltd. - Bottler of the year 2019 by PepsiCo in South Asia region Varun Beverages Ltd. -Winner of Best FMCG Corporate Governance India 2019 awarded by Capital Finance International Varun Beverages Ltd. - Global Best Employer Brands 2020 (Best H
Slide 19: Sustainability Initiatives - PET Recycling
Sustainability Initiatives - PET Recycling (a PepsiCo franchisee) VBL uses ~ 66,000 MT PET resin as packaging material for its finished product annually. These are high quality food grade virgin PET chips which can be easily recycled to make various products for diverse industries and end uses. VBL
Slide 20: Sustainability Initiatives - VBL's Water Positive Balance
Sustainability Initiatives - VBL's Water Positive Balance (a PepsiCo franchisee) Key findings of the report: VBL engaged TUV India Pvt. Ltd. for company's water footprint Parameter Quantity assurance. wherein, water mass balance and its various initiatives Water consumption 2.91 mn KL towards water
Slide 21: Conference Call Details
Conference Call Details (2 PepsiCo franchisee) yp Varun Beverages Limited (VBL) Q4 & CY 2019 Earnings Conference Call » Time Conference dial-in Primary number Local access number International Toll Free Number + UK:0 808 101 1573 1:00 pm IST on Friday, February 07, 2020 +91 22 6280 1141 / +91 22 711
Slide 22: About Us
About Us (a PepsiCo franchisee) Varun Beverages Limited (VBL) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonat
Slide 23: Thank You!
Thank You!