Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (November 2022)
32 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, November 2022
Slide 1: Anadolu Efes Investor Presentation November 2022
ANADOLU EFES INVESTOR PRESENTATION November 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain certain forward-looking statements concerning our future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available
Slide 3: Anadolu Efes at a Glance
ANADOLU EFES AT A GLANCE ANADOLU EFES
Slide 4: Regional Beverage Company With Leadership Positions
Regional Beverage Company With Leadership Positions Serving Anadolu Efes CCI 116 mhl 7.0 bn TL Sales Volume** 750 mn Europe’s 5*th Among EBITDA** Population World’s 9*th Top 10 Largest 39.3 bn TL 4.3 bn TL 70+ Export Largest Coca-Cola Sales Revenue** Free Cash Flow** Brewer Bottlers Countries BEER O
Slide 5: Integrating Governance and Growth
Integrating Governance and Growth Superior Governance and Strategic Partnership Broad Geographical and Business Diversification ANADOLU EFES More Balanced Business Mix** BEER 2021 SOFT DRINK OPERATIONS OPERATIONS Turkey Beer 24% 43% RUSSIA UKRAINE 20.1% ) 33% 50.3% Free Float 28.1% 1.5% Free Float
Slide 6: Vision & Mission
Vision,&Mission Russia Ukraine& Beer Volume Breakdown Values OUR VISION: OUR MISSION: Be the largest brewer from Adriatic to We brew joy passionately and China by developing and owning social responsibly. life and beer culture. OUR VALUES: PASSIONATE AGILE COLLABORATIVE ACCOUNTABLE FAIR
Slide 7: Consistent Solid Growth with Growing Share in International
Consistent Solid Growth with Growing Share in International More Balanced Business Mix** 6% Volume Growth* 2021 32% 30% 44% 2016 56% 68% Revenue Growth* Soft drinks Beer Group 32% Growing International Business** EBITDA Growth* 2021 30% 33% 48% 2016 52% FCF Growth* 70% International Turkey * 2016-20
Slide 8: Solid Investment Theme
Solid Investment Theme Diversified business model including Strategic Partnerships with World’s leading beer and soft drinks FMCG companies; AB InBev & TCCC Excellent brand portfolio including some of Strong market positions across all operations the world’s best known brands and strong regional bra
Slide 9: Beer Operations
BEER OPERATIONS ANADOLU EFES
Slide 10: Strong Positions Across the Board
Strong Positions Across the Board 11 Breweries RUSSIA 3 Breweries TURKEY World’s 6th largest beer market 11 liters per capita 54 liters per capita #1 Position #1 Position 52% Market share 30% Market share 13% of Beer Volumes 63% of Beer Volumes 2 Breweries KAZAKHSTAN 3 Breweries UKRAINE Beer market
Slide 11: Product Portfolio Priorities
Product Portfolio Priorities Focus on Develop Premium Ensure New Products Portfolio Affordability & Make Expansion Play Innovations Strengthen Expand into the Core Adjacent segment Categories / NABLAB
Slide 12: Volumes beyond expectations in 3Q2022
Volumes beyond expectations in 3Q2022… Consolidated Beer Soft Drink Volume Operations Operations 3Q 9M 3Q 9M 3Q 9M -13% -8% +8% +16% -3% organic +7% organic +1% +9% -1% excl. +3% excl. Ukraine Ukraine reported reported International International 3Q 9M 3Q 9M -19% -12% +20% +26% -6% +2% -6% excl. +1%
Slide 13: Beer Group 3Q Highlights
Beer Group 3Q Highlights Russia CIS • Market was down by mid-single digits in 3Q • Volume growth of low-single digits on average • Impact of YTD Price increase slightly offset by • Kazakhstan grew slightly; contributed by premium & good weather affordable segment growth • Less number of import brand
Slide 14: Soft Drinks
SOFT DRINKS
Slide 15: Strategic Soft Drinks Priorities
Strategic Soft Drinks Priorities to Volume Breakdown By Country* Create Value Accelerate Be the Best in Win with Our Digital for Industry Win with “Quality” Growth FMCG Execution People Leadership Stakeholders • Revenue Growth • Win at the Point of Sale • Integrated Talent Strategy • Digital transfo
Slide 16: Soft Drinks 3Q Highlights
Soft Drinks 3Q Highlights • Reported volume growth of 7.5% in 3Q (2.9% decline • Türkiye volume declined by 7.8% in 3Q impacted by organically*) • Lower consumer confidence in a high inflation • Uzbekistan’s consolidation impact offsets the volume environment & deteriorating real disposable income d
Slide 17: 9M2022 Consolidated Financial Overview
9M2022 CONSOLIDATED FINANCIAL OVERVIEW
Slide 18: Exceptional profitability expansion
Exceptional profitability expansion… Anadolu Efes Beer Group 3Q REVENUE 3Q • Timely price adjustments NET +152.5% +147.4% • Proactive RGM initiatives CCR*:+61.7% CCR*:+36.6% • Favorable currency translation • Strong margin expansion in beer group with, • Successful revenue management EBITDA BNRI % 2
Slide 19: Financials
Financials Anadolu Efes Beer Group mTL mTL 3Q2022 Change 9M2022 Change 3Q2022 Change 9M2022 Change Sales Revenue 29,767 +152.5% 68,072 +140.3% Sales Revenue 12,355 +147.4% 27,301 +128.1% Gross Profit 11,481 +162.8% 25,092 +145.1% Gross Profit 5,596 +188.5% 11,696 +162.5% EBITDA (BNRI) 6,716 +185.0%
Slide 20: EBITDA (BNRI) & Free Cash Flow Generation
EBITDA (BNRI) & Free Cash Flow Generation Beer Group EBITDA (BNRI) Bridge Free Cash Flow Bridge mTL mTL Strong momentum +309% +324 sustained in profitability +37%* 2,931 +21%* margins with RGM +22%* 610 1,315 1,654 1,826 317 2,214 initiatives, effective 29 759 717 265 435 COGS & OPEX management 3Q20
Slide 21: Balance Sheet & Risk Management
Balance Sheet & Risk Management Beer Group Hedges*: Anadolu Efes Cash Profile Debt Profile Commodity: 21% 42% TL 27.2 bn TL 38.4 bn Aluminum: 88% (2023: 50% for TR and CIS) FX & commodity ($1.5 bn)58%* ($2.1 bn) 79% PET/Resin: 100%** hedging hard currency hard currency Barley: 93% instruments Averag
Slide 22: Financial Priorities for 2022
Financial Priorities for 2022 Profitability Balance Sheet Risk Free Cash Flow Management Management Ensure necessary Maintain leverage Manage FX and Ensure strong Free pricing to mitigate ratios at healthy levels commodity price Cash Flow generation cost pressures volatilities through through discip
Slide 23: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES
Slide 24: Capital Allocation Priorities
Capital Allocation Priorities Leverage inorganic Maintaining a healthy growth opportunities balance sheet by keeping Net Debt / Penetrate and expand EBITDA between 1.0x – into new geographies 2.0x through exports Invest in brands, Maximizing innovation, product shareholder value diversification, thr
Slide 25: Sustainable Shareholder Return
Sustainable Shareholder Return Sustainable Free Cash Flow Generation Leading to High Dividend Yields* Anadolu Efes 8.3% 7.7% 6.3% 4,263 TL 1.93 TL 1.77 1.85 CAGR 3,012 mTL 36% 2,335 2.4% 2.0% 1.8% 1.3% 1.4% 1,315 1,030 1,054 TL 0.46 TL 0.51 TL 0.42 501 638 TL 0.25 TL 0.25 2014 2015 2016 2017 2018 20
Slide 26: Revised 2022 Outlook
FR Revised 2022 OUTLOOK Alas ASW ERNIE, — Male > —_ [o} a <x Zz < EFES
Slide 27: Resilient Performance Despite Headwinds
Improvements in beer group outlook Resilient Performance reflected in our consolidated guidance… Despite Headwinds With the strong results achieved in 3Q we make further improvements in our beer group outlook being also reflected into Anadolu Efes’ guidance. ANADOLU EFES BEER GROUP SOFT DRINKS GROUP
Slide 28: Sustainability
SUSTAINABILITY
Slide 29: Our Commitments – Road to 2030
Our Commitments – Road to 2030 ESG PRIORITIES GOALS Targeting Zero • Become carbon neutral in all our operations by 2030 • Become a certified zero-waste beer producer by 2030 for the environment • Continue to reduce plastic usage Increasing • Our Focus Areas: Culture & art, local development & women
Slide 30: Appendix
APPENDIX
Slide 31: More Room for Growth with Lower Per Caps
More Room Russia & Ukraine for Growth with Lower Per Caps Beer Consumption Per Capita in 2021 (in liters)2 143 98 96 93 92 89 88 84 78 75 74 73 72 69 67 67 63 63 Average: 63.1 Litres 61 54 53 51 50 47 43 Average: 34.0 Litres 34 34 33 33 33 31 30 11 Austria Norway Belarus Italy Georgia Slovenia Nethe
Slide 32: Thank You
ANADOLU EFES THANK YOU