East African Breweries Plc · NSEKE:EABL
East African Breweries — H1 FY2011 Earnings Presentation
22 slides from East African Breweries's earnings presentation, Feb 18, 2011
Slide 1: F'11 Half Year Results Investor Briefing
DIAGEO East African Breweries Limited F’11 Half Year Results Investor Briefing Seni Adetu – Group Managing Director & CEO Peter Ndegwa – Group Finance Director 18th Feb 2011
Slide 2: Our full blown portfolio…
Our full blown portfolio… Spirits & Wines Beers Non- Alcoholic Adult Beverages
Slide 3: Our Half Year Story…
DIAGEO Our Half Year Story… 18th Feb 2011
Slide 4: We have had a very exciting 1st half of fiscal year F'11
We have had a very exciting 1st half of fiscal year F’11 Top line and bottom line financials grew and we Sales Volume +12 % generated a strong Cash out-turn Restructured our organization making it simpler, faster and better Net Sale Value +10 % Acquired Serengeti Breweries Limited- 2nd largest
Slide 5: Growth was fuelled by strong macro-economic fundamentals
Growth was fuelled by strong macro-economic fundamentals Global GDP Growth promising In a stabilizing Global inflation And into the Foreseeable Future in the East African Environment
Slide 6: …such that all our core brands grew over LY
…such that all our core brands grew over LY +9% +5% +263% +23% +9% +16% +26% +48% >Tusker Project fame 4 Anchored on key >CECAFA foot ball challenge sales & >Mentorships (JW) marketing platforms >Smirnoff outdoor campaigns >Senator Keg expansion footprint
Slide 7: on the back of impactful commercial interventions
on the back of impactful commercial interventions Automate sales process Central data point Smart money
Slide 8: supported by strategic CAPEX investment & cost-value management
supported by strategic CAPEX investment & cost-value management CAPEX > Installation of New packaging line in Uganda > Increased water storage facilities and optimising other utility facilities > Marsh filter in progress Cost-value Management > Supply chain optimisation > Material/ingredient substit
Slide 9: …an engaged work force and improved organisational effectiveness
…an engaged work force and improved organisational effectiveness Mini-conference forum Team-building sessions Restructured organization – simpler faster service delivery Mini-conference sessions Key Key Town hall forums…meet and greet informal settings initiatives initiatives Pro-active acti
Slide 10: as we heightened our “force for good” agenda…
as we heightened our “force for good” agenda… > Water of life programme > Skills for life initiative > Environment – Save the Mau > Responsible drinking campaign
Slide 11: Financial Update
DIAGEO Financial Update Peter Ndegwa – Group Finance Director 18th Feb 2011
Slide 12: EABL delivered strong Financial Performance …
EABL delivered strong Financial Performance … Rebounding economies – good macro economic fundamentals, recovering business Tax relief on spirits – Great volumes growth Stable cereal and energy prices – less + pressure on COGS Political unease – elections/referendum and political competition
Slide 13: Supported by growth on key fronts
Supported by growth on key fronts Key KPI performance vs. LY Volume NSV Operating Profit > Spirits volume rebounded supported by tax reprieve > NSV affected by mix – increase in price of premium/mainstream brands > Costs contained to deliver profit growth
Slide 14: And supported by great COGS savings delivery
And supported by great COGS savings delivery Volume & COGS Growth Overall COGS growth below volume growth Volume COGS
Slide 15: Kenya delivered the largest growth rates
Kenya delivered the largest growth rates Kenya Uganda +5% +14% +23% -21% 311 245 NSV Operating Profit NSV Operating Profit Great Lakes > Kenya – NSV up by 14%; 0% Operating Profit up by 23% > Uganda NSV up by 5%; -26% Operating Profit declined by 21% > Great Lakes – still challenging NSV Operating P
Slide 16: Detailed results…
Detailed results… East African Breweries Limited Interim Financial Report for Six Month period ended 31 December 2010 (UNAUDITED) Consolidated Profit and Loss Account Restated Six months to Six months to 31-Dec-10 31-Dec-09 Kshs M Kshs M Change % Net Revenue 20,463 18,617 10% Cost of Sales (9,851) (
Slide 17: Proposed Interim Dividends…..
Proposed Interim Dividends….. F11 F10 (actual) Kshs Kshs Dividend per Share 2.50 2.50 Total payout 2BN 2BN
Slide 18: 2nd Half Outlook
DIAGEO nd 2 -- Half Outlook Seni Adetu – Group Managing Director & CEO 18th Feb 2011
Slide 19: We are intent at generating superior shareholder value…
We are intent at generating superior shareholder value… Leveraging on.. Overcoming & – Growing economies – Regulatory concerns ( Excise Tax/ Alcohol Act) – Increasing population, growing middle class – Fiscal pressures in our markets & affluence – Growing competition – Increased integration (EAC) –
Slide 20: Strategic Focus Areas for H'2 and beyond…
Strategic Focus Areas for H’2 and beyond… Premiumisation = Focus on Premium Spirits and Premium beer Brand equity enhancement Ruthless focus on supply and Cogs optimization Beating the competition and winning in new markets Route-to-Consumer capability upgrade and improved in-bar execution
Slide 21: In conclusion…
In conclusion… > Considerable improvement in financial performance in half year with NSV, PBT all growing above LY Recoded top line growth in Kenya and Uganda Flagship brands grew in volume and had improved brand health > Performance was driven by: Strong Performance in Spirits and mainstream
Slide 22: Welcome Q&A Session
DIAGEO Welcome Q&A Session 18th Feb 2011
East African Breweries — H1 FY2011 Earnings Presentation on 6ix