East African Breweries Plc · NSEKE:EABL

East African Breweries — H1 FY2015 Earnings Presentation

31 slides from East African Breweries's earnings presentation, Feb 13, 2015

  1. Slide 1: Half Year Results 2015

    HALF YEAR eab RESULTS 2015 13'™ FEBRUARY PERN LR fi

  2. Slide 2: Outline of the Half Year Results Briefing

    OUTLINE F15 Half Year Review OF THE Charles Ireland HALF YEAR RESULTS Financial Performance BRIEFING Tracey Barnes Summary & Outlook Charles Ireland Q&A

  3. Slide 3: F15 Half Year Review

    F15 HALF YEAR REVIEW Charles Ireland Group Managing Director

  4. Slide 4: EABL has a stretching ambition and is well-positioned to achieve it

    EABL has a stretching ambition and is well- positioned To create the best to achieve it performing, most trusted and respected consumer products company in Africa  Strengthen and accelerate our premium core brands  Win in reserve in every market  Innovate at scale to meet new consumer needs  Bui

  5. Slide 5: We achieved Net Sales growth of 9%

    We achieved Net Sales growth of 9% KES b’n vs LY Net Sales 34.8 + 9% Cost of Sales + 9% Gross Profit + 9% Profit Before Tax 6.8 12% + 5

  6. Slide 6: All markets delivered robust NSV growth

    All markets delivered robust NSV growth Contribution to HY Growth Key Brands Overall EABL KENYA 61% +3% UGANDA 18% +7% TANZANIA 12% +17% EABLi 9% +118% Total EABL 100% +9% 6

  7. Slide 7: Good growth in all product segments (except emerging beer)

    Good growth in all product segments (except emerging beer) Emerging Beer Mainstream Beer RTDs Premium Beer Tanzania -12% +8% +59% -24% +18% Excl Senator +15% Emerging Spirits Mainstream Spirits Premium Spirits Reserve Spirits 18% 18% +28% +7% +32% +67% 7 NET SALES GROWTH F15 vs. F14; Excludes ANAD’s

  8. Slide 8: Senator is now of marginal importance

    Senator is now of marginal importance H1 F13 Pre-duty increase H1 F15- Post duty increase Share of NSV: 4% Share of NSV: 16% Senator Senator Rest of Portfolio Rest of Portfolio 96% 84% Gross Contribution: Gross Contribution: Senator Senator Rest of Portfolio Rest of Portfolio 8

  9. Slide 9: Kenya: +3% Very strong Q2

    Kenya:+3% Very strong Q2  Premium beer net sales grew Excluding Senator by 13% mainly due to the Kenya net sales 11% strong Guinness performance +  Strong growth in emerging spirits category (+82% NSV) The New due to Jebel innovation and Smirnoff Ice Kane Extra Guarana and New Tusker Lite pack wel

  10. Slide 10: Uganda: good performance, despite FX challenges

    Uganda: Uganda delivered good +7% performance, despite FX challenges Innovation driven by  Uganda Waragi drove the new Senator overall spirits volume Stout growth Waragi volumes up  Improving performance on Bell 32% Bell Lager introduced  Strengthening of the US new consumer dollar against the Ug

  11. Slide 11: Tanzania: Emerging beer supported double digit net sales growth

    Tanzania: Emerging beer +17% supported double digit net sales growth  Strong growth in emerging Kibo Gold volumes up +++ beer category at driven by Kibo Gold Lager Jebel  Successful launch of Jebel Coconut Coconut successful innovation  Serengeti Platinum gaining momentum Reserve  Reserve and br

  12. Slide 12: EABLi: Premiumisation, success of can formats and good mix

    EABLi:+ Premiumisation, success 118% of can formats and good mix  Strong mix in H1 driven by Currency premium beer and challenges in H1 premium spirits  The move to cans and local presence in Juba $ have boosted growth  Very strong performance in South Sudan constrained by availability of dollars

  13. Slide 13: We continue to invest in our future growth

    We continue to invest in our future growth CAPEX  CGI Furnace rebuild at a cost of ˜KES 1bn  KBL standby generators, ˜ KES 0.5bn  In Uganda, effluent treatment plant upgrade ˜ KES 0.4bn Drive out Costs  Embedded organisation change  Procurement savings  Ownership mindset 13

  14. Slide 14: Optimizing our Route to Consumer

    Optimizing our Route to Consumer Build & Constantly Extend  Expand number of outlets called directly  Drive availability and influence in directly called outlets  Build sustainable distributor partners (EABL)  150 motorbikes selling to 4800 outlets (Kenya)  Sales force automation (EABL)  Spiri

  15. Slide 15: Our investment in People and Communities underpins our business objectives

    Our investment in People and Communities underpins our business objectives Sustainability  Multi-year talent programme linked to our 400+ performance ambition EABL employees on accelerated development programmes at entry,  Amazing line manager mid career & senior programme for our top leadership l

  16. Slide 16: We are working hard to improve the performance of our core beer brands

    We are working hard to improve the performance of our core beer brands Areas requiring further development  Core beer brands growth  Improve our planning processes  Impact of excise on Senator performance  Weakening East Africa currencies 16

  17. Slide 17: Turnaround of our Tanzania business is a H1 highlight

    Turnaround of our Tanzania business is a H1 highlight for EABL H1 Highlights  Innovations: Smirnoff Ice Guarana, Senator Stout, Liberty, Platinum Serengeti Lager, Jebel Special, Jebel Gold and Jebel Coconut…  Continued momentum in spirits:+35%  Implementation of the initiatives to improve route t

  18. Slide 18: Thank You

    Thank You Please hold the questions to the end 18

  19. Slide 19: Financial Performance

    FINANCIAL PERFORMANCE Tracey Barnes Group Finance Director

  20. Slide 20: EABL Profit After Tax grew by 11%

    EABL Profit After Tax grew by 11% KES b’n vs LY Net Sales 34.8 + 9% Cost of Sales + 9% Gross Profit + 9% Profit After Tax 4.6 11% +

  21. Slide 21: Growth in revenues from all markets and all product categories except value beer

    Growth in revenues from all markets and all product categories except value beer Financial Report Half Ended 31st December 2014  Kenya bottled beer grew by 31-Dec-14 31-Dec-13 Growth 5% mainly driven by EABL Consolidated Income Statement % Guinness. KES M KES M Net Revenue 34,768 31,858 9% Cost of

  22. Slide 22: KES 1.3 bn savings delivered in cost of sales

    KES 1.3 bn savings delivered in cost of sales Financial Report Half Ended 31st December 2014 31-Dec-14 31-Dec-13 Growth  Savings from the drive out EABL Consolidated Income Statement % costs include:- KES M KES M • Improved raw materials Net Revenue 34,768 31,858 9% usage Cost of Sales (17,657) (16

  23. Slide 23: Continued investment in Selling & Distribution and good management of overheads

    Continued investment in Selling & Distribution and good management of overheads supporting H1 growth Financial Report Half Ended 31st December 2014 31-Dec-14 31-Dec-13 Growth EABL Consolidated Income Statement %  Selling and Distribution KES M KES M costs are 5% above last Net Revenue 34,768 31,858

  24. Slide 24: Increased finance costs driven by higher borrowings

    Increased finance costs driven by higher borrowings Financial Report Half Ended 31st December 2014 31-Dec-14 31-Dec-13 Growth EABL Consolidated Income Statement %  Total group borrowings KES M KES M increased by KES 5.5b in H1 Net Revenue 34,768 31,858 9% to fund operations and capital expenditure.

  25. Slide 25: Effective tax rate flat against last year

    Effective tax rate flat against last year Financial Report Half Ended 31st December 2014 Growth EABL Consolidated Income Statement 31-Dec-14 31-Dec-13 % KES M KES M Net Revenue 34,768 31,858 9% Cost of Sales (17,657) (16,127) 9% Gross Profit 17,111 15,731 9% Selling and Distribution costs (3,188) (3

  26. Slide 26: Proposed dividends

    Proposed dividends Proposed Dividends KES/Share Interim Dividend 1.50 26

  27. Slide 27: Summary & Outlook

    SUMMARY & OUTLOOK Charles Ireland Group Managing Director

  28. Slide 28: Summary: In H1 we delivered a solid performance

    Summary: In H1 we delivered a solid performance  Q1 was strong, Q2 stronger  All markets are in growth with Tanzania moving into profitability  All product sectors (ex value beer) are in growth  Senator is now of only marginal importance  We are confident we have a winning strategy which we wil

  29. Slide 29: Q & A Session

    HALF YEAR ) eab RESULTS 2015 Q &A Session

  30. Slide 30: End

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  31. Slide 31: Cautionary statement concerning forward-looking statements

    Cautionary statement concerning forward-looking statements This presentation contains ‘forward-looking’ statements. These forward-looking 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 statem

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