Embotelladora Andina SA · BCS:ANDINA_A
Embotelladora Andina SA — Q3 2019 Earnings Presentation
28 slides from Embotelladora Andina SA's earnings presentation, November 2019
Slide 1: Corporate Presentation 3Q19
Corporate Presentation 3Q19 . , x ee a e @ 2 < \ ee . a er es a on: SN pers . \ \ x is i " * {oo | | x —— | | Se =. rf eS a 0 e . i? \ \ °
Slide 2: #goPaperless
In line with our constant effort to improve Agenda communication with the financial market and at the same time reduce waste generation, Page we have developed the Coca-Cola Andina IR App. This is an investor relations application, and we will begin a 100% digital communication plan of our Financial
Slide 3: 1. Company Description
1. Company Description Agenda Page [CLIENT NAME]
Slide 4: History
History Merger with KO Polar (incorporation of new During April we began Coca-Cola System Andina Andina listed on territories in Argentina, distributing AdeS joint venture (50/50) becomes the the NYSE. Chile & Paraguay). products, reinforcing for the water and Coca-Cola Franchise TCCC acquires Andin
Slide 5: A regional and diversified platform (FY18)
A regional and diversified platform (FY18) Volume Revenues Adjusted EBITDA 9% 9% 12% 31% 34% 38% 27% 25% 17% 33% 32% 33% 751 MM UCs US$2,569 MM US$502 MM Chile Brazil Territories: Antofagasta, Atacama, Coquimbo, Territories: Rio de Janeiro, Espíritu Santo, part of Metropolitan Region, San Antoni
Slide 6: Ownership (As of June 30, 2019)
Ownership (As of June 30, 2019) Controlling Group 44.4% 55.7% 33.1% Series A Series B Others 33.5% Coca-Cola 7.3% ADRs 2.5% Chilean Pension Funds 12.3% The Controlling Group is composed of 5 Chilean families with equal parts, that have a shareholders’ agreement which includes TCCC. Series A elects 1
Slide 7: Superior manufacturing and logistics capabilities
Superior manufacturing and logistics capabilities Argentina Brazil 3 production facilities with a total 3 production facilities with a total of 22 lines of 28 lines ◦ Average utilization ranged from ◦ Average utilization range from 31.5% to 62.2% 34.8% to 69.2% 45 distribution centers 17 dis
Slide 8: Committed to Sustainable Development
Committed to Sustainable Development Generating Social, Economic and Environmental Value in all of our actions Source: Company filings and public releases 7
Slide 9: 2. Market Description
2. Market Description Agenda Page [CLIENT NAME]
Slide 10: Coca-Cola Andina at a glance: Market Structure
Coca-Cola Andina at a glance: Market Structure (As of December 31, 2018) Market Share Channel Mix Per capita 9% Consumption 65% 30% (8 oz. bottles) 258 42% 31% 31% 31 25 29% Soft Drinks Waters Juice and On premise Wholesalers Others Soft drinks Waters Juices and Others Supermarkets Mom and Pops Prod
Slide 11: Market Structure (As of December 31, 2018)
Market Structure (As of December 31, 2018) Market Share Per capita Product Mix Market Share Per capita Product Mix Consumption 6% Consumption 6% 11% 10% 63% (8 oz. bottles) 63% (8 oz. bottles) 270 3% 45% 46% 220 17% 14% 31 19 83% 19 18 81% 8 Soft drinks Waters Juices and Others Soft Drinks Waters Ju
Slide 12: Diversified brand portfolio across segments and geographies
Diversified brand portfolio across segments and geographies (As of September 30, 2019) Argentina Brazil Chile Paraguay SSDs1 Juices and other NCBs1 Water Beer Spirit Beverages2 Source: Company filings and public releases 1 SSDs: Sparkling Soft Drinks; NCBs: Non-Carbonated Beverages 3 The complete Di
Slide 13: 3. Financial Highlights
3. Financial Highlights Agenda Page [CLIENT NAME]
Slide 14: Track record of profitability, Adjusted EBITDA growth, diversification and strong cash generation
Track record of profitability, Adjusted EBITDA growth, diversification and strong cash generation Sales volume (million UCs) Revenues (CLP$ mm) Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay CAGR -2.5% 830.6 819.9 1,797,200 1,877,394 1,848,878 778.9 756.2 750.6 1,777,459 1,672,916 1
Slide 15: Solid Financial Position
Solid Financial Position Financial Debt (CLP$ mm) Financial Debt Summary (CLP$ mm) as of September, 2019 Short Term Financial Debt Long Term Financial Debt Banks Bonds Total Ch$mm 52,801 725,967 778,768 810,019 827,517 786,371 772,679 % 6.8% 93.2% 100% 743,749 778,768 Note: Banks includes: Bank, Lea
Slide 16: Solid Financial Position
Solid Financial Position Financial Ratios (I) Financial Ratios (II) Net Financial Debt / Adj. EBITDA Financial Debt / Equity Ratio (1) Net Financial Debt (2) / Equity Ratio Net Financial Debt / Adj. EBITDA (w/o MtM CCS) (3) Debt Coverage Ratio (4) 1.0 7.5 7.7 0.9 0.9 0.9 6.9 6.7 0.9 0.9 6.4 5.1 2.2
Slide 17: Consolidated Financial Highlights (Billion Ch$)
Consolidated Financial Highlights (Billion Ch$) 2013 2013P 2014 2015 2016 2017 2018 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 Total Volume (million UCs) 763 826 831 820 779 756 751 204 198 165 161 168 173 Net Sales 1,522 1,640 1,797 1,877 1,777 1,849 1,673 480 447 363 380 345 406 Operating Income 171 179 187 21
Slide 18: Consolidated Financial Highlights (Million US$)
Consolidated Financial Highlights (Million US$) 2013 2013P 2014 2015 2016 2017 2018 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 Total Volume (million UCs) 763 826 831 820 779 756 751 204 198 165 161 168 173 Net Sales 3,071 3,311 3,151 2,868 2,627 2,848 2,569 797 668 581 556 521 572 Operating Income 346 361 328 32
Slide 19: Consolidated Balance Sheet (as of September 30, 2019)
Consolidated Balance Sheet (as of September 30, 2019, in million US$ and million CLP$) Million US$: Assets Liabilities and Equity Cash and Cash Equivalents 147 Current Financial Liabilities 60 Current Assets 438 Other Current Liabilities 371 Non current Assets + Others 2,204 Non-Current Financial Li
Slide 20: Dividends and Market Cap (as of September 30, 2019)
Dividends and Market Cap (as of September 30, 2019) Dividend Distribution1 Market Cap (million CLP$) (billion USD) 4.2 3.4 3.3 3.0 2.7 2.5 85,476 85,476 75,537 67,586 52,081 53,671 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Dividend Yield2 2014 2015 2016 2017 2018 Series A 2.8% 3.7%
Slide 21: 4. Strategy
4. Strategy Agenda Page [CLIENT NAME]
Slide 22: Expansion potential through organic and inorganic growth avenues
Expansion potential through organic and inorganic growth avenues Organic growth Inorganic growth Superior organic growth within the Key role in the consolidation process of the Coca-Cola system Coca-Cola system in Latin America Fuel growth in SSD business Inorganic expansion in line with TCCC go
Slide 23: 5. Appendix
5. Appendix CttGplg NDINA
Slide 24: Argentina: Main Financial Highlights
Argentina: Main Financial Highlights (Local Currency (million)) 2013 2014 2015 2016 2017 2018 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 Sales Volume (million UCs) 224 229 234 219 211 202 60 49 43 38 46 40 Net Sales 4,898 6,541 8,903 11,343 14,203 22,441 7,324 6,177 5,901 5,204 6,644 6,310 Operating Income 398 4
Slide 25: Brazil: Main Financial Highlights
Brazil: Main Financial Highlights (Local Currency (million)) 2013 2013P 2014 2015 2016 2017 2018 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 Sales Volume (million UCs) 243 305 306 291 266 249 249 65 66 56 58 56 62 Net Sales 2,142 2,657 2,959 3,059 3,037 2,976 3,062 809 877 683 754 668 837 Operating Income 257 290
Slide 26: Chile: Main Financial Highlights
Chile: Main Financial Highlights (Local Currency (million)) 2013 2014 2015 2016 2017 2018 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 Sales Volume (million UCs) 235 232 234 232 231 231 62 65 50 50 52 56 Net Sales 477,918 492,072 514,733 540,427 551,873 570,939 147,712 156,876 126,228 132,757 130,557 141,525 Opera
Slide 27: Paraguay: Main Financial Highlights
Paraguay: Main Financial Highlights (Local Currency (million)) 2013 2014 2015 2016 2017 2018 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 Sales Volume (million UCs) 61 63 61 62 65 68 18 18 16 15 15 16 Net Sales 968,523 1,010,735 1,033,215 1,107,678 1,227,001 1,337,989 353,045 354,575 313,475 302,109 292,767 322,38
Slide 28: Agenda
Corporate Presentation 3Q19 . , x ee a e @ 2 < \ ee . a er es a on: SN pers . \ \ x is i " * {oo | | x —— | | Se =. rf eS a 0 e . i? \ \ °