East African Breweries Plc · NSEKE:EABL
East African Breweries — H1 2024 Earnings Presentation
30 slides from East African Breweries's earnings presentation, January 2024
Slide 1: F24 HY Results
ner e2 — x ‘3 S eqn F24 HY RESULTS January 2024
Slide 2: Agenda
Slide 3: Tough Macro Environment
TOUGH MACRO ENVIRONMENT eabl: GDP Inflation Currency Interest Rates WM 2022 MM 2023F WM 202341 «MM 2023 H2 MM cap MB USD Dec ‘23 Vs Dec ‘22 WM Jun23 MMI Dec23_ 182day TBill rates 5.5% 5.1% 8.5% 8.0% 16.0% 4.8% 4.5% 4.6% Kenya Uganda Tanzania Kenya Uganda Tanzania 34.6% Kenya Uganda Tanzania Kenya Ug
Slide 4: Rising Cost of Doing Business
RISING COST OF DOING BUSINESS eabl: Raw Materials Fuel Excise increases: Glass +10%, Sugar +5% +39% +16% Inflation: +16%
Slide 5: (24%) (33%) (5%) (27%) (10%)
30 41 (24%) (33%) 6 33 (5%) 12 (27%) (10%)
Slide 6: Shifting Retailer Trends
SHIFTING RETAILER TRENDS eabl: On Trade Off Trade Emerging Channels E-Commerce Spaces to connect and enjoy Evolving to cater for New marketplaces Supporting exploration and across price tiers premiumisation and convenience (3rd and 4th space) creating new occasions
Slide 7: Our Strategy
OUR STRATEGY eabl To create the best performing, most trusted and respected consumer products company in Africa Explode Mainstream Spirits Vibrant Beer Win in Shape New Premium Frontiers Aspirational and Accessible Innovations Digital Transformation Route to Reputation, Supply Footprint Efficient Gr
Slide 8: Resilient Performance on the Back of Challenging Environment
RESILIENT PERFORMANCE ON THE BACK OF CHALLENGING ENVIRONMENT eabl: Volume Net Sales PAT 742% f4+16% | -22% CASH DPS (KShs) 7 +6Bn 1.00
Slide 9: Growth Momentum Continuing in H1
GROWTH MOMENTUM CONTINUING IN H1 eabl: NSV (KES bn), HY THE SINGLETON. Single Malt Scotch Mhisky LUSCIOUS NECTAR 2222 OLD FFTOWN DISTILLER F20 F21 F22 F23 F24
Slide 10: Growth Across Markets...
GROWTH ACROSS MARKETS... eabl: Ee | 431% 22% of total EABL Ge |+10% 63% of total EABL eee 15% of total EABL
Slide 11: ... and Strategic Imperatives
... AND STRATEGIC IMPERATIVES ea ol: Vibrant Beer Explode Mainstream Spirits Win in Premium Shape New Frontiers | 18% 1 +34%
Slide 12: Great Portfolio to Meet Consumer Needs
GREAT PORTFOLIO TO MEET CONSUMER NEEDS ea bl: Most Loved Brands In Culture New Occasions Innovation New PINEAPPLE PUNCH & GUARANA More FLAVOUR, More EDGE EAST AERICA a yrds, vocnsTas STN re ES ae
Slide 13: Solid Commercial Execution
SOLID COMMERCIAL EXECUTION ea ol: Advantaged RtC Winning at the Point of Sale Building Emerging Channels
Slide 14: Digital Transformation
DIGITAL TRANSFORMATION ea ol: Consumer B2C B2B bs Let's Party % te Baw sh ’
Slide 15: Home of Kenya's Finest
m= HOME OF KENYA’S FINEST
Slide 16: Delivering Against Our ESG Strategy; Society 2030
DELIVERING AGAINST OUR ESG STRATEGY; SOCIETY 2030 : : wich SQUAD! : Ae
Slide 17: Embedding a Culture of Performance
EMBEDDING A CULTURE OF PERFORMANCE ea bl: Performance Enablement Talent Culture BOLDPR OGRESS IVECON NECTED PPLRE FEARLESS INTENT RAPID EXECUTION
Slide 18: Employer awards in KE and TZ
Employer awards in KE and TZ Marketing awards in KE and UG CR awards in KE and UG Legal awards in KE Supply awards in KE 1&D Award in UG
Slide 19: Financial Review
Slide 20: Solid Topline Growth, Profitability Impacted by Inflation, FX & Finance Cost
SOLID TOPLINE GROWTH, PROFITABILITY IMPACTED BY INFLATION, FX & FINANCE COST eabl Net Sales 66.5 57.3 16% A Cost of Sales (37.0) (30.7) +21% Gross Profit 29.5 26.6 +I% & Selling and distribution costs (6.1) (5.2) +17% Administrative expenses (6.5) (6.1) +6% Other (expenses)/income, net (0.6) 03 +118
Slide 21: PBT % Bridge F23 H1 to F24 H1
-7.3% 6.2% -1.6% 22.4% 1.0% 5.2% -0.4% -1.9% -1.9% 15.2% -1.4% -12.5% PBT % Price Excise Inflation Productivity Vol benefits Mix Expenses FX Finance PBT % F23 H1 (sell, distr & Costs F24 H1 admin costs)
Slide 22: Strengthened Balance Sheet
STRENGTHENED BALANCE SHEET eabl: Current Assets Current Liabilities FY23 Cash Stocks Debtors Income F24 HI FY 23. Creditors Bank BorrowingsDividends F24 HI tax OD Non-Current Assets Non-Current Liabilities ar 86 59.0 47 89.2 | Hi — § = = 01 FY 23 PPE — Intangibles Deferred F24 H1 FY 23 Borrowings De
Slide 23: Decreasing Debt Albeit Rising Interest Rates
DECREASING DEBT ALBEIT RISING INTEREST RATES abl Hi Net debt == Effective cost of debt Net Debt/ EBITDA 1.23 1.60 1.23 182 day 9.8% 11.9% 16.0% T-Bill (KE)
Slide 24: Cash Flow Movement
1.4 18.2 -4.0 -2.2 -4.3 0.5 10.7 9.0 -8.0 As at start Cash from Changes in Net Interest Income tax Net cash used Net cash used Foreign Cash and cash of year operations before Working Capital Paid paid in investing in financing exchange impact equivalents at working capital activities activities on t
Slide 25: Capex Spend, KES bn
Capex Spend, KES bn Capex % NSV 6.2 5.5 43 F22H1 F23 H1 F24H1
Slide 26: Looking Ahead
Slide 27: F24 H2 Priorities
F24 H2 PRIORITIES * Consumer centricity * Margin expansion ¢ Smart investment * Society 2030 * People
Slide 28: Q&A
Slide 29: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This document contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express fo
Slide 30: EABL Celebrating Life
eabl: CELEBRATING LIFE
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