Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Investor Presentation (2019)
30 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, 2019
Slide 1: 1H2019 Investor Presentation
1H2019 Investor Presentation
Slide 2: Ownership Structure
Ownership Structure 100% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS Public 24% 33% -Turkey Beer Operations 3.0% -International Beer Operations (EBI) Public 26.7% 50% Russia 50.3% 100% Kazakhstan 96.9% Moldova 43% 100% Georgia 20.0% 50% Ukraine 2
Slide 3: Anadolu Efes At a Glance
Anadolu Efes At a Glance 690 mn consumers 10.7** billion litres sales volume 21 Breweries* & 26 Bottling Plants 18.7** billion TL sales revenue th Europe’s 6 , World’s 16 th largest brewer 3.1** billion TL EBITDA 6th largest Coca-Cola bottler 1.1** billion TL Free Cash Flow Strategic partnerships wi
Slide 4: Competitive Advantages
Competitive Advantages Diversified business model including beer and soft drinks Strategic Partnership with World’s leading FMCG companies; AB InBev & TCCC Strong brand portfolio including some of the world’s best known brands and strong regional brands Expertise & Know-how in driving cost efficienc
Slide 5: 2Q2019 Highlights
2Q2019 Highlights Unless stated otherwise, the figures from hereon are based on proforma numbers (including the ABI merger in Russia & Ukraine for 1H2018) and excluding IFRS16 impact for 1H2019. Volume growth of 3.9% on Consolidated and 8.7% on Consolidated Revenue up by 34.3%; Total Beer level Beer
Slide 6: Solid Topline Together with Margin Expansion
Solid Topline Together with Margin Expansion Excluding IFRS 16 EBITDA (BNRI) & SALES VOLUME NET SALES REVENUE EBITDA (BNRI) Margin 14.3% 15.4% 54.3 55.6 11,133.4 8,463.3 1,718.6 1,207.4 mn TL mn TL mhl 1H2018 1H2019 1H2018 1H2019 1H2018 1H2019 Proforma Proforma Proforma Turkey Beer 4% 8% 4% Share of
Slide 7: Beer Operations
BEER OPERATIONS #50ENFESYIL
Slide 8: Efes Beer Group Foundations
Efes Beer Group Foundations Vision Mission We brew joy, passionately and responsibly. Be the largest brewer from Adriatic to China by developing and owning social life and beer culture. Values • Passionate • Agile • Collaborative • Accountable • Fair Business Priorities Financial Discipline Operatio
Slide 9: Efes Beer Group At a Glance
Efes Beer Group At a Glance #1 Since 1969 16th 6th in our markets More than 80 brands Largest in the World Largest in Europe ~ 300m consumer Turkey, Kazakhstan Moldova, Georgia (Russia, Ukraine #2) 9.200+ Employees 80+ 6 21 Export countries Operation countries Breweries Turkey, Russia, Kazakhstan Mo
Slide 10: Markets With Future Growth Opportunities Despite Challenges
Markets With Future Growth Opportunities Despite Challenges Low per capita consumption Developing economies Young populations Westernization/Urbanization Regulations Taxation Poor consumer confidence 10
Slide 11: Turkey Beer Operations
Turkey Beer Operations Low per capita consumption of 11 liters* offering a growth potential Growing population with 1.5% annual growth rate in 2018 47% is below age 30 Leading brewer** in the market 3 Breweries with 8.0 mhl capacity 2 Malteries & 1 Hops Processing Facility enabling verti
Slide 12: Russian Beer Operations
Russian Beer Operations World’s 5th largest beer market* Per capita consumption of 57 liters* Merged operations of AB InBev and Anadolu Efes on 1st April 2018 ABInbev Efes JV is head to head at market leadership Complementary brand portfolio with leading position in premium segment 11 br
Slide 13: Other International Beer Operations
Other International Beer Operations Ukraine: Moldova: Beer market size of 1.0 mhl1 Beer market size of 18.7 mhl1 Per capita consumption of 29 liters1 Per capita consumption of 42 #1 player liters1 Kazakhstan: Georgia: Beer market size of 5.5 mhl1 Beer market size of 1.1 mhl1 Per capi
Slide 14: Commitment to Environment
Commitment to Environment CLIMATE CHANGE AND ENERGY MANAGEMENT By performing technical improvements in the processes, using smart systems for heating and lighting and the projects implemented for LED lighting transformation, we have achieved energy savings of 4.1 million MWh and financial savings of
Slide 15: Solid Cash Flow Generation
Solid Cash Flow Generation Focus on profitability margins Smart Capex Planning Tight Working Capital Management Beer Group FCF Anadolu Efes FCF 1,054 443 TL million TL million 376 70 45 2013 2018 2013 2018 15
Slide 16: Soft Drinks Operations
SOFT DRINKS OPERATIONS APPENDIX
Slide 17: CCI is the 6th Largest Bottler in the Coca-Cola System, Operating in 10 Countries
CCI is the 6th Largest Bottler in the Coca-Cola System, Operating in 10 Countries Overview • ~400 mn people KAZAKHSTAN • 26 production plants with 124 lines • 1.5 bn UC(1) annual production capacity AZERBAIJAN • ~920 thousand sales points KYRGYZSTAN TURKEY TURKMENISTAN TAJIKISTAN • 1.3 bn UC sales v
Slide 18: Coca-Cola İçecek – Opportunities
Coca-Cola İçecek – Opportunities NARTD Industry Value Growth & More Room to Diversify Product Opportunity Portfolio Share of Low/No Calorie in Sparkling Volume (2018) 18
Slide 19: Coca-Cola İçecek – Strategic Priorities
Coca-Cola İçecek – Strategic 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 • Increase cooler penetration • Working capital i
Slide 20: Financials & Outlook
FINANCIALS & OUTLOOK APPENDIX
Slide 21: FY Financials: Robust performance in a transformational year
FY Financials: Robust performance in a transformational year… ANADOLU EFES TOTAL BEER TURKEY BEER EBI 28% 18,690 Net Sales 14,587 30% 8,067 35% 6,195 18% 4,576 6,158 1,588 1,870 FY2017 Proforma FY2018 FY2017 Proforma FY2018 FY2017 FY2018 FY2017 Proforma FY2018 Margin: 38.4% 37.4% 45.7% 42.9% 59.2% 5
Slide 22: Accelerated Topline Growth with Operational Savings and Synergies
Accelerated Topline Growth with Operational Savings and Synergies Offset Input Cost Pressures ANADOLU EFES BEER GROUP TURKEY BEER EBI 11,133 32% Net Sales 8,463 43% 5,016 3,513 25% 48% 4,074 2,762 735 919 1H2018 Proforma 1H2019 1H2018 Proforma 1H2019 1H2018 1H2019 1H2018 Proforma 1H2019 Margin: 34.9
Slide 23: Balance Sheet Discipline Maintained
Balance Sheet Discipline Maintained Net Debt / EBITDA (BNRI)1 Maturity Schedule2 522 Anadolu Efes Consolidated 500 1.8 -67% of cash is hold as hard currency 257 M USD times 163 -84% of debt is in hard currency 141 1.4 (60% of our debt is hedged through 68 Net Investment Hedge and CCS) 59 1H2018 1H20
Slide 24: Balance Sheet FX Exposure Mitigated
Balance Sheet FX Exposure Mitigated... Hedged majority of outstanding debt via various instruments; both at Anadolu Efes & Beer Group level December 2018 June 2019 Anadolu Efes 60% of our debt is hedged Unhedged Unhedged 40% through Net Investment Hedged 42% 58% Hedge and CCS as of 2Q2019 Hedged 60%
Slide 25: Input costs & FX exposures are tightly monitored
Input costs & FX exposures are tightly monitored… • Cash flow hedge via designation • ~ 90%* of FX exposure in COGS&OPEX hedged in Turkey for 2019 • ~ 65% FX exposure in COGS&OPEX Hedged hedged in Turkey for 2020 positions for 85%** 100% 2019* • ~ 100% hedged in Russia & Ukraine LME Aluminium Prices
Slide 26: Financial priorities are on track
Financial priorities are on track… Productivity P&L & FCF Management Generation Debt Risk Management Management Cash Management 26
Slide 27: Appendix
APPENDIX #50ENFESYIL
Slide 28: Detailed 2019 Guidance
Detailed 2019 Guidance Our 2019 guidance reflects reported financials where 2018 numbers include 9-months ABI-Efes impact and 2019 expected numbers include 12-months. Reference to “proforma” means 12 month ABI-Efes impact in 2018. Although our business is mostly on track with the initial guidance on
Slide 29: Corporate Structure
Corporate Structure 100% Efes Breweries International 50% 50% 100% 100% 98% Legal merger to be completed in due course 100% AB INBEV EFES BV: Equal board representation 96.9% Chairman of the Board appointed by Anadolu Efes CEO & CFO appointed by BoD Governance rights enables AEFES to fully c
Slide 30: Thank You
THANK YOU APPENDIX
Anadolu Efes Biracilik ve Malt Sanayii A.Ş. — Investor Presentation (2019) on 6ix