Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (May 2021)
41 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, May 2021
Slide 1: Anadolu Efes Investor Presentation May 2021
ANADOLU EFES INVESTOR PRESENTATION May 2021
Slide 2: Anadolu Efes At a Glance
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Slide 3: A regional beverage company…
A regional beverage company… Europe’s In FY2020; 5th* 700 mn 54.3 mhl 103.5 mhl Population Brewing World’s Sales Volume Capacity 10th* 21 Largest 26.7 bn TL Breweries Brewer Sales Revenue 1.7 bn u/c 26 Bottling Among 5.1bn TL Bottling Plants Capacity Top 10 EBITDA Largest Coca-Cola 3.0 bn TL Bottler
Slide 4: …through its diversified businesses…
…through its diversified businesses… 100% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS Public -Turkey Beer Operations 24% -International Beer Operations (EBI) 1.9% Public 50% Russia 50.3% 100% Kazakhstan 96.9% Moldova 43% 100% Georgia 50% Ukraine 4
Slide 5: …with a solid track record of profitable growth…
…with a solid track record of profitable growth… TOTAL VOLUME REVENUE EBITDA & FREE CASH FLOW mhl TL bn Margin % TL mn CAGR CAGR CAGR CAGR +21.2% +23.6% 19.1% +36.4% 17.3% +3.7% 103.5 26.7 5,098 3,012 86.1 10.2 1,766 638 2015 2020 2015 2020 2015 2020 2015 2020 2020 2020 2020 4% 2020 9% 7% 6% 8% 10%
Slide 6: …and a solid investment theme
…and a solid investment theme Diversified business model Strategic Partnerships with World’s leading FMCG companies; AB InBev & including beer and soft drinks TCCC Strong brand portfolio including some Strong market positions across all of the world’s best known brands and operations strong regional
Slide 7: Beer Operations
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Slide 8: Beer Group in a Nutshell…
Beer Group in a Nutshell… 6 countries 21 Breweries, 100+ brands RUSSIA 54.3 mhl brewing capacity, 70+ export countries 36.2 mhl beer volume UKRAINE KAZAKHSTAN 12.3 bn TL revenue* & 1.9 bn TL EBITDA* MOLDOVA GEORGIA TURKEY Leadership in all operations Volume Breakdown* Revenue Breakdown* EBITDA Break
Slide 9: …with strategic priorities to drive value
…with strategic priorities to drive value FINANCIAL OPERATIONAL DISCIPLINE & CUSTOMERS & EXPANSION & PEOPLE BRANDS STAKEHOLDERS EXCELLENCE VALUE CONSUMERS GROWTH CREATION Nurturing our Providing Building Achieve Enhancing Building Expanding our talents by choice, great competitive profitable growth
Slide 10: 1Q2021 Beer Group Performance
1Q2021 Beer Group Performance
Slide 11: Robust performance delivered in Russia and CIS in 1Q
Robust performance delivered in Russia and CIS in 1Q BEER GROUP INTERNATIONAL BEER TURKEY BEER VOLUME SALES VOLUME SALES VOLUME SALES VOLUME BREAKDOWN* Turkey 7.3 10% 7.0 6.6 CIS 6.2 11% mhl mhl mhl 0.7 0.7 79% Russia 1Q2020 1Q2021 1Q2020 1Q2021 1Q2020 1Q2021 & Ukraine Russia & Ukraine CIS Countries
Slide 12: Winning brand portfolio in Russia and Ukraine
Winning brand portfolio in Russia and Ukraine Focus on Global Brands Super Premium & Premium Increasing share in Growth Growth Non-Alcohol Beer RUSSIA Expanding Non-Alcohol Beer Development of Non-Beer Growth in Global Brands Portfolio Segment UKRAINE 12
Slide 13: Value generating initiatives in CIS Countries
Value generating initiatives in CIS Countries Sustaining Market Strengthening Growing Leadership Core & Premium Brands Non-Alcohol Beer New Packs & Multipacks Digitalization Launch of New Flavored beer 13
Slide 14: Continued focus and brand investments in Turkey
Continued focus and brand investments in Turkey Stabilization of Portfolio Premiumisation Increasing Visibility Launch of Seasonal & New Packs & Multipacks Marketing Activations New Flavored beer 14
Slide 15: Soft Drink Operations
Soft Drink Operations
Slide 16: Coca-Cola Icecek in a nutshell…
Coca-Cola Icecek in a nutshell… • 10 countries, ~400 mn people • 26 production plants with 126 lines • 1.7 bn UC(1) annual production capacity KAZAKHSTAN • ~780 thousand sales points AZERBAIJAN KYRGYZSTAN TURKEY TURKMENISTAN TAJIKISTAN • 1.2 bn UC sales volume SYRIA • 14.4 bn TL revenue & 3.1 bn TL
Slide 17: …with clear priorities
…with clear 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 Management • Increase cooler penetration • Working capital improve
Slide 18: 1Q2021 Soft Drink Performance
1Q2021 Soft Drink Performance
Slide 19: Remarkable growth delivered in 1Q…
Remarkable growth delivered in 1Q… SOFT DRINKS VOLUME SALES VOLUME BREAKDOWN* Azerbaijan Others Iraq 3% 281 7% 3% 238 119 Kazakhstan m u/c 14% 43% Turkey 107 132 161 29% 1Q2020 1Q2021 Pakistan Turkey International Turkey Operations International Operations • Turkey volume growth of 11.8% • Internati
Slide 20: …with solid performance in Turkey despite continued lockdowns…
… with solid performance in Turkey despite continued lock downs… Volume Net Sales Revenues NSR per UC EBITDA (exc.other) +12% +33% +19% +50% Channel Performance Volume IC Share Sparkling Stills Water 1Q21 +19.7% 1Q21 +15.7% 1Q21 -14.4% 20
Slide 21: …robust profitable growth across the board in international operations
…robust profitable growth across the board in international operations Volume Net Sales Revenues NSR per UC EBITDA (exc.other) +23% +51% +23% +106% Channel Performance Volume IC Share Sparkling Stills Water 1Q21 +28.1% 1Q21 +13.7% 1Q21 -16.0% 21
Slide 22: 1Q2021 Consolidated Financial Overview
1Q2021 Consolidated Financial Overview
Slide 23: We made a very good start to the year…
We made a very good start to the year… REVENUE NET REVENUE Price increases +36.5% Favorable mix & better discount management Positive currency translation EBITDA BNRI EBITDA MARGIN +137.5% Calendarization of some expenses in international beer and soft drinks Higher opex in Turkey beer due
Slide 24: …together with an outstanding financial performance in the smallest quarter…
…together with an outstanding financial performance in the smallest quarter… VOLUME NET REVENUE EBITDA BNRI EBITDA BNRI% FREE CASH FLOW ANADOLU 715 715mTL EFES 23.2 mhl 6,159 mTL mTL 11.6% -251 mTL +13.2% vs. PY v +36.5% vs. PY v vs.PYPY +139.4% +137.5%vs. +5.0pp vs. PY +771m vs. PY GROUP BEER 7.3 m
Slide 25: …with y-o-y improvement in both operational profitability and cash generation…
…with y-o-y improvement in both operational profitability and cash generation… Beer Group 351.3 -214.9 EBITDA Bridge mTL -98.8 11.1 -47.4 -96.1 Net Cost of Selling, Other 1Q2020 Revenue Sales Marketing 1Q2021 and G&A expenses Free Cash Flow 151.8 -40.7 Bridge 503.6 60.4 -29.8 -589.3 mTL 49.3 -1,283.
Slide 26: …leading to low leverage ratios…
…leading to low leverage ratios… Net Debt / EBITDA (BNRI)1 Maturity Schedule2 Anadolu Efes 1.4 - 81% of cash is hold as hard 573 (mn USD) 4393 1.0 currency 0.7 250 -70% of debt is in hard currency 148 110 30 - 93% of debt is fixed 2021 2022 2023 2024 Mar’ 20 Dec’ 20 Mar’ 21 Beer Group CCI Beer Group
Slide 27: …by sustainable improvement in free cash flow…
…by sustainable improvement in free cash flow… Beer Group Anadolu Efes 1,293 3,012 CAGR 793 36% 2,335 551 539 443 mTL mTL 376 +54% 1,315 1,030 1,054 638 +75% -589 -251 -1,284 -1,021 2015 2016 2017 2018 2019 2020 1Q20 1Q21 2015 2016 2017 2018 2019 2020 1Q20 1Q21 27
Slide 28: …with clear priorities for balance sheet management
… with clear priorities for balance sheet management Reducing FX exposure • No FX debt exposure other than Eurobond Extending Debt Maturity • Particularly in relation to the refinancing of US$ 2022 bonds Ensuring Capital Efficiency • Beer Group: 2.0x (1Q2020: 2.0x) • Anadolu Efes: 1.0x (1Q2020: 1.5x
Slide 29: Going Forward and 2021 Outlook
Going Forward and 2021 Outlook
Slide 30: Maximizing value of our business…
Maximizing value of our business… Maximizing Maintaining a Maximizing Investing in organic growth healthy balance shareholder inorganic growth sheet value Invest in brands, Leverage market and capacity Net Debt/EBITDA: Dividend pay-out acquisition 1.0x - 2.0x ratio of min. 40% opportunities Capital
Slide 31: …driven by commitment to sustain profitable leadership
…driven by commitment to sustain profitable leadership Market Investments Revenue / hl Drivers • Cooler investments • Price increases • Distribution effectiveness • Premiumization • Digitalization • Discount management • Right portfolio mix & channel mix Brand Investments Cost and Expense Management
Slide 32: Despite a very strong quarter outlook maintained…
Despite a very strong quarter outlook maintained… VOLUME SALES REVENUE continuing impact of pandemic FX-Neutral basis Consolidated: Beer Group: Soft Drinks: Consolidated: Beer Group: Soft Drinks: Low-to-mid- Low-single digit Range of Mid-teens Low-teens High-teens single digit growth 4% to 6% growth
Slide 33: Sustainability
Sustainability
Slide 34: 2030 Sustainability Vision
2030 Sustainability Vision Targeting Zero Increasing Getting Stronger For the environment. Our support for social impact Through diversity & inclusion We love the Earth. We’re aiming zero We are investing in the society for a We believe in diversity & equality environmental impact considering sustai
Slide 35: Appendix
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Slide 36: International makes up more than 80% of beer group…
International makes up more than 80% of beer group… RUSSIA UKRAINE KAZAKHSTAN GEORGIA MOLDOVA TURKEY - 11 Breweries - 3 Breweries - 2 Breweries - 1 Brewery - 1 Brewery - 3 Breweries - 33.5 mhl Brewing - 7.7 mhl Brewing - 2.6 mhl Brewing - 2.0 mhl Brewing - 1.5 mhl Brewing - 7.0 mhl Brewing Capacity
Slide 37: Russian Beer Operations
Russian Beer Operations World’s 5th* largest beer market with 73 mhl market size; 01 Russian beer market grew by low single** digit in 2020 & our volumes grew by mid-single digit Sustained both volume and value leadership & clear market 02 leader in Super Premium & Premium segments Focus on premium
Slide 38: Turkey's largest brewer
Turkey’s largest brewer Low per capita consumption of 11 liters* Rich portfolio of local, imported & licensed offering a growth potential brands covering all segments #1 in consumer spending in Food & Beverage Growing population with 1.2% CAGR in category 2015-2020 99% penetration in alcohol selling
Slide 39: Effective management of Commodity & FX exposures…
Effective management of Commodity & FX exposures… • Cash flow hedge via designation & derivatives FX exposure in 78%* COGS&OPEX&Interest hedged in Turkey for 2021 68%** 43%*** 100% Hedged positions for 2021* Hedged in Russia & Ukraine 100% Turkey’s 2021 local Hedged positions for barley procurement
Slide 40: Increasing dividend yields
Increasing dividend yields Gross Dividend per Share (TL per 100 shares) Dividend Dividend yield: yield: 8.3%* 7.7% TL 1.93** TL 1.77 Dividend yield: Dividend Dividend 2.4% yield: yield: 2.0% 1.8% Dividend Dividend yield: TL 0.46 yield: 1.4% TL 0.51 1.3% TL 0.42 TL 0.25 TL 0.25 2014 2015 2016 2017 20
Slide 41: Thank You
THANK YOU