Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — 9M2020 Earnings Presentation
19 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Nov 6, 2020
Slide 1: 9M2020 Conference Call Presentation
9M2020 CONFERENCE CALL PRESENTATION 06.11.2020 1
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: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT Can Çaka CEO & Beer Group President 3
Slide 4: Solid performance continued in Q3…
Solid performance continued in Q3… EBITDA > Revenues > Volumes Disciplined focus on cost and opex spending; leading to margin expansion Volume growth driven by both Record low core working capital business lines Beer volumes grew recovering the shortfall TL 1.9 bn free cash flow with positive in 1H
Slide 5: Demand supported by increased mobility & favorable weather conditions…
Demand supported by increased mobility & favorable weather conditions… BEER GROUP SALES VOLUME SOFT DRINKS SALES VOLUME Turkey International Turkey International 10.6 28.0 390.5 1,004.4 957.2 10.1 27.6 383.4 m u/c 549 mhl 207 221 551 8.4 8.9 23.5 24.5 177 170 455 406 1.7 1.6 4.1 3.5 3Q2019 3Q2020 9M
Slide 6: Margin improvement and better FCF generation in Beer Group…
Margin improvement and better FCF generation in Beer Group… 1H2020 3Q2020 9M2020 Changes vs. PY Changes vs. PY Changes vs. PY 6.6% +466m +47m 25.5% 11.1% 18.1% 7.5% -0.2% 4.4% 1.5% -7.9% -420m Volume Net EBITDA FCF Volume Net EBITDA FCF Volume Net EBITDA FCF Sales Sales Sales 6
Slide 7: International driving volume growth, Russia still the most resilient…
International driving volume growth, Russia still the most resilient… INTERNATIONAL BEER SALES VOLUME RUSSIA MARKET SHARE * Volume Share Value Share +2.2 pp +2.3 pp 23.5 24.5 29.5% 29.7% 27.4% 27.4% 8.4 8.9 Sep Sep Sep Sep 2019 2020 2019 2020 mhl 27.7% 28.3% 27.2% 26.7% -0.5 pp -1.6 pp 3Q2019 3Q2020
Slide 8: A much better 3Q despite challenges…
A much better 3Q despite challenges… TURKEY BEER SALES VOLUME 1.7 1.6 4.1 3.5 mhl 3Q2019 3Q2020 9M2019 9M2020 Turkey Beer Operations 3Q volumes significantly improved vs 1H, down 4.3% Volume growth posted in July and August; despite Lower touristic activity, continued restrictions in certain o
Slide 9: Sparkling category continued to be strong…
Sparkling category continued to be strong… SOFT DRINKS SALES VOLUME VOLUME BREAKDOWN* BY COUNTRY Turkey International Azerbaijan Others Iraq 4% 4% 9% 383 390 1,004 957 42% Turkey Kazakhstan 12% m u/c 207 221 549 551 177 170 455 28% 406 Pakistan 3Q2019 3Q2020 9M2019 9M2020 *Breakdown on combined basi
Slide 10: Robust performance in Q3; mostly recovered the challenges in 1H
Robust performance in Q3; mostly recovered the challenges in 1H VOLUMES Volume growth driven by both business segments 3Q 9M International beer volumes grew by 6.2%; mostly driven by Russia +2.5% -2.7% Turkey beer volume showed a significant improvement compared to 1H REVENUE Price increases
Slide 11: Financial Overview
FINANCIAL OVERVIEW N. Orhun Köstem Chief Financial Officer 11
Slide 12: September 2020 – Income Statement
September 2020 – Income Statement VOLUME NET REVENUE EBITDA BNRI EBITDA BNRI % +47.8% +22.0% 9M ANADOLU 3Q 9M 3Q 3Q 9M EFES 2,088 3,885 mTL 1,413 3,184 32.8 mhl 82.4 mhl 8,740 mTL 20,324 mTL 23.9% 19.1% +2.5% vs. PY -2.7% vs. PY +24.2% vs. PY +12.5% vs. PY +3.8pp vs. PY 3Q19 3Q20 9M19 9M20 +1.5pp vs
Slide 13: Balance Sheet & Risk Management
Balance Sheet & Risk Management Beer G Net Debt / EBITDA @ 1.3x (9M2019: 1.3x) Record low core working capital AEFES Net Debt / EBITDA @ 0.8x (9M2019: 1.2x) Currency 97% Hedged (2020) Average debt maturity is 1.7 years Aluminium 95% Hedged (2020) 67% of cash held in hard currency Reducing FX debt ex
Slide 14: Pillars of Beer Group EBITDA Growth
Pillars of Beer Group EBITDA Growth Strong EBITDA performance continued in 3Q driven by OPEX savings… 232.2 -143.7 52.1 682.1 -1.8 543.3 mTL 2019 Q3 Net Revenue Cost of Sales Selling, Marketing Other 2020 Q3 and G&A expenses 14
Slide 15: Beer Group FCF Breakdown
Beer Group FCF Breakdown •Increase in Beer Group FCF vs last year is due to; • Higher operational profitability • Significant improvement in core working capital 103.3 5.3 -148.9 366.1 443.6 mTL 140.7 -22.8 EBITDA Changes in Income Taxes Capex, net Net Financial 2020 Q3 2019 Q3 Working & Employee In
Slide 16: Closing Remarks
CLOSING REMARKS Can Çaka CEO & Beer Group President 16
Slide 17: 2020 Beer Group Outlook Unchanged…
2020 Beer Group Outlook Unchanged… •Being cautious for the rest of the year due to accelerating number of COVID-cases across the board •Reiterating our 2020 beer group outlook Mid-single digit Less contraction Not exceed 2019 Positive Free decline vs. 1H Cash Flow EBITDA Capex / Free Cash Volumes Ma
Slide 18: Q&A Session
Q&A SESSION Can Çaka CEO & Beer Group President N. Orhun Köstem Chief Financial Officer 18
Slide 19: FX Rates
FX Rates 9M2019 9M2020 Δ% AVG 5.63 6.71 19.2% USD/TL PE 5.66 7.81 38.0% AVG 6.33 7.56 19.4% EUR/TL PE 6.18 9.13 47.6% AVG 11.55 10.54 -8.7% TL/RUB PE 11.38 10.21 -10.3% AVG 67.72 60.92 -10.0% TL/KZT PE 68.50 55.01 -19.7% AVG 4.68 3.95 -15.6% TL/UAH PE 4.26 3.62 -14.8% AVG 3.13 2.59 -17.2% TL/MDL PE
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