Embotelladora Andina SA · BCS:ANDINA_A
Embotelladora Andina SA — Investor Presentation (2012)
48 slides from Embotelladora Andina SA's investor presentation, 2012
Slide 1: Corporate Presentation 2012
CORPORATE 2012 PRESENTATION
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements made in this presentation that could relate to Andina’s future performance or financial results are forward-looking statements and are based upon currently available data; however, actual results are subject to numerous uncertainties, many of which are beyond th
Slide 3: History
History New bottling facility in Chile begins operations. Coca-Cola System Restructuring of juice Andina Andina listed on joint venture (50/50) business through joint becomes the the NYSE. for the water and venture with Coca-Cola Coca-Cola Franchise TCCC acquires juice business in bottlers in Chile
Slide 4: Ownership
Ownership (December 31, 2011) 55.0% 42.4% Controlling Group 48.7% Series A Series B Others 22.5% Coca-Cola 11.0% ADRs 9.2% Chilean Pension Funds 8.5% The Controlling Group is composed of 4 Chilean families with equal parts, that have a shareholders’ agreement which includes TCCC. Series A elects 6 o
Slide 5: Consolidated Overview
Consolidated Overview (December 31, 2011) REVENUES EBITDA (million USD) (million USD) CAGR 12.4% CAGR 8.6% 365.1 375.9 2,031.1 359.3 1,742.0 1,715.8 290.4 303.7 277.2 1,322.9 1,404.6 1,271.6 2007 2008 2009 2010 2010P 2011 2007 2008 2009 2010 2010P 2011 Includes Vital Jugos Does not include Vital Jug
Slide 6: Consolidated Overview (3Q 2012)
Consolidated Overview (3Q 2012) REVENUES EBITDA (nominal million CLP) (nominal million CLP) 244,441 39,899 228,108 38,706 3Q 2011 3Q 2012 3Q 2011 3Q 2012 TOTAL VOLUME (million unit cases) 123.9 116.1 3Q 2011 3Q 2012 6
Slide 7: Summary
Summary (December 31, 2011) Rio de Janeiro & Espirito Santo Extension: 90 thousand Km2 Population: 17.6 million Total volume: 205.1 million UCs Metropolitan Region, San Antonio & Cachapoal Brazil Extension: 24 thousand Km2 Population: 7.7 million Total volume: 157.8 million UCs Chile Mendoza, San Ju
Slide 8: Regional Diversification
Regional Diversification (December 31, 2011) Brazil 41% Brazil 45% Brazil 43% Chile 31% Chile 31% Chile 39% Argentina 28% Argentina 24% Argentina 18% Total Volume Total Revenues EBITDA 501 million unit cases 2.0 billion USD 376 million USD 8
Slide 9: Argentina
Argentina Santa Fe Córdoba San Juan Entre Ríos Mendoza San Luis In Argentina Company has a License Agreement with The Coca-Cola Company for the sale of concentrates and beverage basis for certain Coca-Cola soft drinks and non-soft drink beverages. In accordance with the agreement we have the right t
Slide 10: Argentina
Argentina Santa Fe Córdoba San Juan Entre Ríos Mendoza San Luis We operate 1 production facility located in Montecristo, Córdoba with a total of 8 lines. Average utilization capacity for the year 2011 was 59.9%. Additionally, it operates 1 production facility for juices and other products with 1 lin
Slide 11: Argentina Market Structure
Argentina Market Structure Format Mix – Soft Drinks Market Share Soft drinks 57.3% Non-Returnables 52% Total 39.3% Multi Serving 89% Returnables 47% Juices & Others 19.7% Single Serving 11% Waters 10.5% Post Mix 1% Volume Mix Channel Mix – Soft Drinks Per Capita Consumption (8 oz. bottles) Mom & Pop
Slide 12: Argentina Brand Portfolio
Argentina Brand Portfolio Soft drinks Juices & Others Waters 12
Slide 13: Argentina Volume Growth
Argentina Volume Growth (MUCs) (December 31, 2011) Total Volume 8.7 CAGR 4.7% 1.9 6.7 3.0 10.5 1.7 10.3 9.6 9.8 Juices, Waters & Others CAGR 50.4% 9.8 Diet Soft Drinks CAGR 1.7% Regular Soft Drinks CAGR 3.5% 2007 2008 2009 2010 2011 13
Slide 14: Argentina Financial Highlights
Argentina Financial Highlights (Nominal MUSD) (September 30, 2012) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2011 1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 Sales Volume (MUC) 115,3 122,0 120,9 120,9 125,2 138,3 36,4 41,6 29,2 31,6 31,8 34,5 Net Sales 252,1 321,7 315,7 311,8 363,2 479,9 116,0 156,0 97,3 122,2 1
Slide 15: Brazil
Brazil Espirito Santo Rio de Janeiro In Brazil the Company has a License Agreeement with TheCoca-Cola Company for the sale of concentrates and beverage basis for certain Coca-Cola soft drinks and non-soft drink beverages. In accordance with the agreement we have the right to produce and distribute C
Slide 16: Brazil
Brazil Espirito Santo We operate 2 production facilities located in Jacarepaguá in the State of Rio de Janeiro and in Vitoria in the State of Espírito Santo with a total of 13 lines. Average utilization capacity for the year 2011 was 75%. Rio de Janeiro The company has 5 Distribution Centers for its
Slide 17: Brazil Market Structure
Brazil Market Structure (Year 2011) Format Mix – Soft Drinks Market Share1 Soft drinks 57.4% Non-Returnables 86% Total 52.1% Multi Serving 74% Returnables 11% Juices & Others 42.8% Single Serving 26% Waters 9.6% Post Mix 3% Volume Mix1 Channel Mix – Soft Drinks Per Capita Consumption1 (8 oz. bottles
Slide 18: Brazil Brand Portfolio
Brazil Brand Portfolio Beer Soft drinks Juices & Others Waters 18
Slide 19: Brazil Volume Growth
Brazil Volume Growth (MUCs) (December 31, 2011) Total Volume CAGR 4.2% 15.5 21.6 11.6 19.2 17.7 Juices, Waters & Others CAGR 24.8% 8.9 10.5 20.5 23.2 22.5 Diet Soft Drinks CAGR -6.5% Regular Soft Drinks CAGR 4.0% 2007 2008 2009 2010 2011 19
Slide 20: Brazil Financial Highlights
Brazil Financial Highlights (MUSD) (September 30, 2012) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2011 1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 Sales Volume (MUC) 174,7 174,0 185,3 185,3 202,5 205,1 53,7 57,2 44,9 50,6 47,9 52,3 Net Sales 543,4 582,5 615,1 606,9 799,3 921,0 245,7 254,1 210,6 201,8 221,5 214,6
Slide 21: Chile
Chile Región Metropolitana San Antonio Cachapoal In Chile the Company has a License Agreeement with TheCoca-Cola Company for the sale of concentrates and beverage basis for certain Coca-Cola soft drinks and non-soft drink beverages. In accordance with the agreement we have the right to produce and d
Slide 22: Chile
Chile Región Metropolitana We operate the San Joaquín production facility with 8 bottling lines and 1 blowing line. Average utilization capacity for 2011 was 82.0%. Additionally, during the fourth quarter of 2011 2 lines began production at the new bottling facility in Renca. The company has 6 Distr
Slide 23: Chile Market Structure
Chile Market Structure (Year 2011) Format Mix – Soft Drinks Market Share Soft drinks 69.3% Returnables 61% Total 62.0% Multi Serving 82% Non-Returnables 35% Waters 39.5% Single Serving 18% Juices & Others 35.9% Post Mix 4% Volume Mix Channel Mix – Soft Drinks Per Capita Consumption (8 oz. bottles) M
Slide 24: Chile Brand Portfolio
Chile Brand Portfolio Soft drinks Juices & Others Waters 24
Slide 25: Chile Volume Growth
Chile Volume Growth (December 31, 2011) Total Volume CAGR 3.3% 20.0 23.0 16.8 17.9 14.6 24.5 Juices, Waters & Others CAGR 12.0% 23.0 23.4 24.5 22.9 Diet Soft Drinks CAGR 0.0% Regular Soft Drinks CAGR 2.7% 104.7 105.1 109.2 110.4 99.4 2007 2008 2009 2010 2011 25
Slide 26: Chile Financial Highlights
Chile Financial Highlights (September 30, 2012) Nominal MUSD) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 Sales Volume (MUC) 144,4 150,8 152,4 152,4 161,5 152,6 157,8 40,1 44,9 33,5 36,2 36,4 37,1 Net Sales 482,6 424,4 537,1 488,1 579,5 553,3 630,2 158,8 182,3
Slide 27: Consolidated Financial Highlights (USD)
Consolidated Financial Highlights (September 30, 2012) (Nominal million USD) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 Total Volume (MUCs) 441,3 454,6 458,6 458,6 489,2 480,3 501,2 130,3 143,8 107,7 118,4 116,1 123,9 Net Sales 1.281,3 1.331,3 1.465,4 1.404,6
Slide 28: Consolidated Financial Highlights (CLP)
Consolidated Financial Highlights (September 30, 2012) (Nominal million CLP) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 Total Volume (MUCs) 441,3 454,6 458,6 458,6 489,2 480,3 501,2 130,3 143,8 107,7 118,4 116,1 123,9 Net Sales 636.689 847.301 743.116 785.845
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet (at September 30, 2012) (Million USD) Cash & Cash Equivalents 108 Current Financial Liabilities 50 Current Assets 357 Other Current Liabilities 289 Non current Assets + Others 958 Non-Current Financial Liabilities 226 Goodwill 103 Other Non-Current Liabilities 91 Total Equ
Slide 30: Dividends and Market Cap
Dividends and Market Cap (as of September, 2012) Dividend Distribution Market Cap (million USD) (billion USD) 3.71 150 151 3.42 146 130 2.99 110 2.36 69 2.25 1.54 2007 2008 2009 2010 2011 2012 YTD 2007 2008 2009 2010 2011 2012 YTD Total dividends paid out since 2000 = US$1.5 billion Dividend Yield 2
Slide 31: Cabal sown
Cabal sown
Slide 32: Merger Andina - Polar
Merger Andina - Polar Cabal sown 32
Slide 33: Transaction overview
Transaction overview n Embotelladora Andina S.A. (“Andina”), Embotelladoras Coca-Cola Polar S.A. (“Polar”) and their respective controlling groups have entered into a Memorandum of Understanding to merge Andina and Polar n Approved by respective Boards of Directors n Approved by the respective Sh
Slide 34: The consolidation of a South American bottling powerhouse
The consolidation of a South American bottling powerhouse P n Second largest Coke bottler in South America and third largest Coke Largest Coca-Coca bottlers by volume (Bn UCs) bottler in Latin America in terms of volume n 646 MUCs sold in last 12 months to December 2011 n Population served: 48 m
Slide 35: Increased scale across the board
Increased scale across the board Volume (MUCs) Revenues (MUS$) 646 2,640 145 22.4% 609 23.2% 501 77.6 % 76.8 % Andina FY 2011 Polar FY 2011 Combined Andina FY 2011 Polar FY 2011 Combined Population served (million) Production plants1 10 48 12 25.0% 60.0% 6 36 75.0 % 40.0 % Andina Polar Combined Andi
Slide 36: Diversified business profile
Diversified business profile Key figures Chile Brazil Argentina Paraguay 48 million 646 MUCs MUS$2,640 MUS$478 9% 8% 11% 15% 26% 18% 28% 30% 35% 32% 35% 36% Population served Volume FY 2011 Revenues FY 2011 EBITDA FY 2011 36
Slide 37: Multiple sources of value creation
Multiple sources of value creation P n Estimated synergies of approximately US$25 - 30 million per year n Representing approximately 4-5% of Polar’s revenues n Achievable within 12-24 months n Contiguous territories in Argentina P n Efficiency and competitive costs from scale gains in purchas
Slide 38: A unique value creation vehicle
A unique value creation vehicle Current Current P Leading diversified foot print n AKO PKO shareholders shareholders n #1 KO bottler in Chile n # 2 KO bottler in Brazil 80.32% 19.68% n # 2 KO bottler in Argentina n Only KO bottler in Paraguay P Clear and executable synergies potential n n P
Slide 39: Cabal sown
Cabal sown
Slide 40: Polar Overview
Polar Overview Cnet Selan 40
Slide 41: Regional Diversification
Regional Diversification (December 31, 2011) Paraguay 42% Paraguay 35% Paraguay 54% Argentina 30% Argentina 33% Chile 29% Chile 29% Chile 32% Argentina 17% Total Volume Total Revenues EBITDA 145 million unit cases 0.6 billion USD 95 million USD 41
Slide 42: Argentina
Argentina We will operate 2 production facilities, 1 located in Bahía Blanca (Buenos Aires) with La Pampa a total of 4 lines and 1 located in Trelew (Chubut) with a total of 2 lines. B. Aires Additionally, we will operate 1 production facility for juices and other products, located in Bahía Blanca w
Slide 43: Argentina Market Structure
Argentina Market Structure Format Mix – Soft Drinks Market Share Soft drinks 59,6% Non-Returnables 72% Total 40.5% Multi Serving 91% Returnables 28% Juices & Others 12,9% Single Serving 9% Waters 7,3% Post Mix 1% Volume Mix Channel Mix – Soft Drinks Per Capita Consumption (8 oz. bottles) Mom & Pops
Slide 44: Chile
Chile Tocopilla Antofagasta Calama Taltal Copiapó Vallenar Coquimbo Ovalle Illapel The company operates 3 production facilities located in Antofagasta, Coquimbo and Punta Arenas with a total of 8 lines for soft drinks, 3 lines for water and other products. The company has 12 Distribution Centers for
Slide 45: Chile Market Structure
Chile Market Structure (Year 2011) Format Mix – Soft Drinks Market Share Soft drinks 71.0% Non-Returnables 52% Total 61.0% Multi Serving 79% Returnables 46% Waters 47.9% Single Serving 21% Juices & Others 28.5% Post Mix 2% Volume Mix Channel Mix – Soft Drinks Per Capita Consumption (8 oz. bottles) M
Slide 46: Paraguay
Paraguay The company operates 1 production facility located in Barcequillo, San Lorenzo with a total of 7 lines for soft drinks and water and 2 lines for juices. The company has 3 Distribution Centers for its products carried out through third party distributing companies with an average fleet of 27
Slide 47: Paraguay Market Structure
Paraguay Market Structure Format Mix – Soft Drinks Market Share Soft drinks 63.1% Non-Returnables 49% Total 59.3% Multi Serving 82% Returnables 50% Waters 60.4% Single Serving 18% Juices & Others 25.8% Post Mix 1% Volume Mix Channel Mix – Soft Drinks Per Capita Consumption (8 oz. bottles) Mom & Pops
Slide 48: Visit our Website
Visit our Website www.embotelladoraandina.com 48