30 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, 2014
Slide 1: Investor Presentation
ANADOLU- EFES Investor Presentation
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 availabl
Slide 3: A Total Beverage Company Refreshing 662m Consumers
A Total Beverage Company Refreshing 662m Consumers 16 11 A world class brand portfolio Operating in markets with growth potential indicated by low per capita consumption levels 2005 2014 To a diverse and exciting region with strong GDP growth # of countries Through an experienced and financially str
Slide 4: Operating Geography Ownership Structure
Operating Geography Ownership Structure Refreshing around 660mn consumers in markets with low per capita consumption... ANADOLU GROUP SABMiller Yazıcılar Holding Özilhan Sınai Anadolu Endüstri Harmony Ltd. 24.0% 23.6% Yatırım 13.5% Holding 6.0% Public ANADOLU EFES 33.0% 50.3% BEER OPERATIONS SOFT DR
Slide 5: Strong History Of Growth
Strong History Of Growth Volume* - FY2014 Revenue* - 9M2014 EBITDA*(BNRI)** - 9M2014 20% 18% 25% Soft Drinks Soft Drinks Soft Drinks 8% International Beer International Beer International Beer Turkey Beer 60% Turkey Beer 56% 26% Turkey Beer 15% 72% 88.7 85.6 18.7% 18.8% 72.5 9,195.8 68.8 8,201.6 1,5
Slide 6: Strategy For Sustainable Value Creation
Strategy For Sustainable Value Creation Consumer led portfolio strategy-capturing value in soft drinks and beer Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct companies to maintain focus, build capability & support investment In beer marke
Slide 7: Strong Competitive Advantages
Strong Competitive Advantages Strong Expertise Balanced Strategic regional and Beer and Soft partnership with player know-how in Drink Operations SABM & TCCC powered by driving cost proven local efficiencies know-how 7
Slide 8: Solid Performance in a Challenging Year
Solid Performance in a Challenging Year Targets delivered and financial performance improved despite challenging operating environment Difficult-to-execute measures taken successfully More flexible infrastructure after rightsizing (i.e. plant closures, headcount reductions) Portfolio expansion by le
Slide 9: Beer Operations
Beer Operations
Slide 10: Leading Brewer in our Region
Leading Brewer in our Region Europe’s 5th largest and the World’s 10th largest brewer in terms of sales volume* with No.1 position in most of the markets in which we operate Breweries * Company estimate 10
Slide 11: Markets with low per capita consumption but high potential
Markets with low per capita consumption but high potential Per Capita CAGR Growth 2009-2013 (%) 12% GEORGIA MOLDOVA 7% CHINA BULGARIA POLAND 2% KAZAKHSTAN ROMANIA UKRAINE 0 20 40 60 80 100 120 140 160 GREECE CZECH REPUBLIC SERBIA USA GERMANY -3% TURKEY RUSSIA -8% UZBEKISTAN Per Capita Consumption (l
Slide 12: Beer Strategic Framework to create sustainable value
Beer Strategic Framework to create sustainable value BRANDS Provide choice and innovation to consumers: Grow brand love EXECUTION Excel in customer collaboration, availability and point of sale activation EFFICIENCY Build competitive advantage through lean and efficient operations RELATIONS Focus on
Slide 13: Beer Business Strategic Priorities
Beer Business Strategic Priorities Brands Execution Efficiency Relations Drive category growth Drive visible availability Relentlessly drive cost Develop employees & business efficiencies partners as our ambassadors Broader portfolio Win at point of sales Utilize technology more Minimize our impact
Slide 14: Turkey - Stronger, Broader Brand Portfolio
Turkey - Stronger, Broader Brand Portfolio A multi-brand portfolio approach with; local powerhouse brands premium brands foreign brands Revenue management/broader price & packaging alternatives Leaner organization following the rightsizing of operations and cost savings Improved financial performanc
Slide 15: Russia - Well-positioned in the World's Largest Beer Market
Russia - Well-positioned in the World’s 4 Largest Beer Market th Broader premium portfolio to grow value share New sales & operating model & RTM projects Efficient footprint Improved operating results 15
Slide 16: Other Operations - Strongly Positioned in CIS Countries
Other Operations - Strongly Positioned in CIS Countries Challenging year in the region marked with economic, political and industry-specific issues crisis&excise tax hike in Ukraine devaluation in Kazakhstan Improved market share in most of the operating markets Savings in OPEX & other optimization
Slide 17: Soft Drink Operations
Beer Operations Soft Drink Operations
Slide 18: CCI at a glance
CCI at a glance CCI’s Operating Geography Shareholder Structure Operating in one of the world’s most dynamic and exciting markets 20.1% Kazakhstan 25.9% A gateway to Turkey, Kyrgyzstan 3.7% Pakistan, Central Asia and AZ Turkey Turkmenistan Tajikistan The Middle East Syria Iraq Serving close to 370 J
Slide 19: Capitalizing on favorable demand and demographic drivers
Capitalizing on favorable demand and demographic drivers Per Cap 180 Sparkling Beverage Consumption vs GDP (2013) Consumption (liters) Mexico 150 Argentina USA Germany 120 Brazil UK 90 Kuwait Spain South Africa Bulgaria Saudi Arabia 60 Hungary Oman Jordan Poland Turkey UAE Iraq Greece Italy CCI terr
Slide 20: Soft Drinks Business Strategic Priorities
Soft Drinks Business Strategic Priorities 1 Accelerate Revenue and Margin Growth 2 Grow Sparkling Category and Per Caps 3 Selectively Expand Profitable Still Portfolio 4 Continue to Build and Enhance our Reputation 5 Build a World Class Organization Winning At The Point of Sales Sales Force Effectiv
Slide 21: Focusing on Turning Volume into Value
Focusing on Turning Volume into Value Revenue Strategic Operating Growth Productivity Expenses Procurement Management Management Segmentation Production Sugar Selling, Marketing and Distribution Expenses Water use ratio Availability It water/It product Resin << Cold is sold >> Energy use ratio MJ It
Slide 22: Strong Brand Positioning and Offering in Our Key Markets
Strong Brand Positioning and Offering in Our Key Markets Turkey Iraq 66% 26% Sparkling #1 Sparkling #2 Juice Water Energy Water 26% 6% #1 #2 Kazakhstan Pakistan 48% 30% Sparkling #1 Sparkling #2 Juice Water Juice Water 21% 10% 2% 9% #2 #3 #7 #3 Sources: Nielsen Retail Panel, 2013 & Retail Zoom. Note
Slide 23: Financials & Outlook
Beer Operations Financials & Outlook
Slide 24: 9M2014 Overview - Beer Operations
9M2014 Overview - Beer Operations TURKEY OPERATIONS INTERNATIONAL OPERATIONS Volume Revenue Volume Revenue Growth achieved in 3Q2014 Outperform volume growth due to; EBI volumes declined mainly due to: Positive mix impact continued in 4Q2014 Positive mix weaker volumes in Russia Higher prices crisis
Slide 25: 9M2014 Overview - Soft Drink Operations
9M2014 Overview - Soft Drink Operations TURKEY OPERATIONS INTERNATIONAL OPERATIONS Pakistan - successful campaigns supported volume Category Growth Pricing growth despite headwinds Number of transactions up Price increases on the most selling packages effective from October Sparkling - slight contra
Slide 26: 2014 Outlook
2014 Outlook BEER OPERATIONS ON A CONSOLIDATED BASIS Turkey Beer Market – Flattish Sales volumes - mid-single digit growth Russian Beer Market – Mid-to-high single digit decline Sales revenue growth > volume growth EBITDA (BNRI) growth in line with revenue growth Efes Turkey Volume – Low-to-mid sing
Slide 27: Turkey Beer Financial Performance
Turkey Beer Financial Performance Volume Revenue Tot CAG a l -6 R -3 .0% % .8% G R 4.7 Dom C A esti 0.7% million TRL 8.5 c -5 1,517.5 .6% mhl 7.3 1,264.2 1,231.5 1,239.7 7.1 5.8 5.5 -3.2 % 2009 2013 2014 9M2013 9M2014 2009 2013 9M2013 9M2014 * Sales volume including exports EBITDA 32.2% 33.5% CAG R
Slide 28: International Beer Financial Performance
International Beer Financial Performance Volume Revenue 7.6% R 1 1.0% R AG CAG -2.7 C -8.9 % % million USD 1,300.5 18.2 mhl 17.4 1,037.1 13.6 14.5 14.1 944.9 857.3 -4.8 % 2009 2013 2014 9M2013 9M2014 2009 2013 9M2013 9M2014 EBITDA (BNRI) 12.3% 13.7% CAG R -4 million USD .7% 1.0% 170.1 margin 140.1 1
Slide 29: Soft Drinks Financial Performance
Soft Drinks Financial Performance R6 .9% 4.6% CAG CAG R3 552.8 3.8% 15.5% International 573.6 577.9 484.2 452.6 Volume Turkey Volume 438.9 462.5 480.0 391.7 mu/c mu/c 0.7% 14.2% 147.6 2009 2013 2014 9M2013 9M2014 2009 2013 2014 9M2013 9M2014 R2 1.2% CAG 17.2% million TRL Revenue 5,186.4 4,902.5 4,18
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