Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — H1 2024 Earnings Presentation
37 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, August 2024
Slide 1: 1H2024 Anadolu Efes Investor Presentation
1H2024 ANADOLU EFES INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements & Disclosure
Forward-Looking Statements & Disclosure 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 current
Slide 3: Important Disclaimer Regarding TAS29
Important Disclaimer Regarding TAS29 As stipulated by the decree of the Capital Markets Board, the financial statements for the FY2023 have been presented in accordance with TAS29 (Turkish Accounting Standard 29: Financial Reporting in Hyperinflationary Economies), and retrospective adjustments have
Slide 4: Anadolu Efes Overview
ANADOLU EFES OVERVIEW
Slide 5: Anadolu Efes At A Glance
Anadolu Efes At A Glance Serving +770 mn Population 70+ Export Countries 21 Breweries in 6 Countries 33 Soft Drink Facilities in 12 Countries Europe’s 5*th World’s 10*th Largest Brewer Bangladesh 3 rd** Largest Coca-Cola Bottler • The Barth Report 2022/2023 ** Based on the population served 5
Slide 6: Anadolu Efes By Operations
Anadolu Efes By Operations BEER GROUP TOTAL VOLUMES* 6 countries 122.9 mhl 21 Breweries 100+ brands REVENUE* 51.8 mhl brewing capacity TL 159.9 bn 35.7 mhl beer volume Strong LEADER positions EBITDA (BNRI)* SOFT DRINK GROUP TL 28.6 bn 12 countries 33 Bottling plants FREE CASH FLOW* 2.0 bn UC product
Slide 7: Ownership Structure & Subsidiaries
Ownership Structure & Subsidiaries 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS 24% 50% 43% Russia Azerbaijan Türkiye Türkiye 33% Kazakhstan Kyrgyzstan Free Float Kazakhstan Jordan Pakistan Moldova Iraq Uzbekistan Georgia Syria Turkmenistan 20.1% 50% Ukraine 50.3% Tajikistan Bangladesh 28.1% Free Flo
Slide 8: Our Strategy
OUR STRATEGY
Slide 9: Vision, Mission & Values
slp Vision, Mission & Values _ eR ‘Vision Mission Be the largest brewer We brew joy from Adriatic to China by passionately and developing and owning responsibly. social life and beer culture. ‘Values PASSIONATE AGILE COLLABORATIVE ACCOUNTABLE FAIR ANADOLU EFES 9
Slide 10: Strategic Core Priorities
Strategic Core Priorities 10
Slide 11: Investment Theme
Investment Theme Diversified business model Strategic Partnerships with 1 including beer and soft 5 World’s leading FMCG drinks companies; AB InBev & TCCC Strong market positions Excellent brand portfolio with 2 6 some of the world’s best known across all operations brands and strong regional brands
Slide 12: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT
Slide 13: Russia
Russia Population: 66% of total beer volume 144 Million* Production Facilities: Market Size & Per Capita: 11 Breweries 83 mhl market size** 3 Malteries 58 liters per capita consumption** 1 Preform Production Facility Production Capacity: Market Share: 31.7 mhl Brewing 29% market share*** 288 000 Ton
Slide 14: Kazakhstan
Kazakhstan Population: 7% of total beer volume 20 Million* Production Facilities: Market Size & Per Capita: 2 Breweries 6.6 mhl market size** 33 liters per capita consumption** Production Capacity: Market Share: 2.6 mhl Brewing 46% market share*** Market Leader*** Main Brands: Efes Pilsener, Kruzhka
Slide 15: Georgia
Georgia Population: 3% of total beer volume 3.7 Million* Production Facilities: Market Size & Per Capita: 1 Breweries 1.3 mhl market size** 35 liters per capita consumption** Production Capacity: Market Share: 1.2 mhl Brewing and Soft Drink 45% market share*** Production Market Leader*** Main Brands
Slide 16: Moldova
Moldova Population: 2% of total beer volume 3.4 Million* Production Facilities: Market Size & Per Capita: 1 Breweries 0.9 mhl market size** 25 liters per capita consumption** Production Capacity: Market Share: 1.5 mhl Brewing and Soft Drink 59% market share*** Production Market Leader*** Main Brands
Slide 17: Türkiye
Türkiye Population: 17% of total beer volume 86 Million* Production Facilities: Market Size & Per Capita: 3 Breweries 11.2 mhl market size** 2 Malteries 13 liters per capita consumption** 1 Hops Processing Facility Production Capacity: Market Share: 6.9 mhl Brewing 52% market share*** 115 000 Tons M
Slide 18: 1H2024 Operational Overview
1H2024 OPERATIONAL OVERVIEW
Slide 19: Sustained Growth in Beer Group Volumes
Sustained Growth in Beer Group Volumes… • Consolidated beer volume up by 7.1% in 2Q2024 ➢ Solid performance in Russia, Turkiye and Moldova • Turkiye beer volume up 2.8% • International beer volume up 8.2% ➢ Russian volume grew by low-teens ➢ CIS countries’ volume down by mid-single digits on average
Slide 20: Russia
Russia • Continued growth trend in Russian beer industry ➢ Mid to high single-digit growth* YTD driven by: ✓ Shifts from other alcoholic beverages to beer ✓ New product innovations ✓ Increased market investments • Outperformed the industry in 2Q2024 with low-teens growth; ➢ Strong performance in pre
Slide 21: CIS and Türkiye
CIS • CIS volume down by mid-single digits on average in 2Q2024 ➢ Moldova achieved mid-teens growth ➢ Softer performance observed ✓ In Kazakhstan, impacted by weak industry dynamics and floods in the country ✓ In Georgia, due to production bottlenecks Türkiye • Robust volume performance in 2Q2024 •
Slide 22: Soft Drinks
Soft Drinks • Consolidated volume up by 0.7% in 2Q2024; • Türkiye volume up 1.8% ➢ Effective trade promotions and active consumer marketing ➢ UEFA Euro Cup activations • International volume up 0.1% ➢ Iraq & Azerbaijan delivered strong results with 15.1% and 11.5% growth, respectively ➢ Pakistan dow
Slide 23: 1H2024 Financial Overview
1H2024 FINANCIAL OVERVIEW
Slide 24: Financial Priorities
Financial Priorities Cash Debt Risk Expense Management Management Management Management Ensure liquidity for Maintain long term Manage FX and Zero Based Budgeting operations and accelerate sustainable leverage commodity exposure dividend streams target of 1.0X - 2.0X Cautious and Smart Use Working C
Slide 25: Strong Top & Bottom line in 1H2024
Strong Top & Bottom line in 1H2024… Anadolu Efes Beer Group • Effective pricing 2Q 1H 2Q 1H REVENUE TL60.5mn TL107.7mn TL23.6mn TL41.1mn • Focus on quality mix NET (-5.1%) (-0.8%) (-2.8%) (+1.6%) • Strict discount management • Negative impact from the implementation of TAS 29 • Tight control of oper
Slide 26: Financials
Financials Anadolu Efes Beer Group mTL mTL 2Q2024 Change 1H2024 Change 2Q2024 Change 1H2024 Change Sales Revenue 60,508 -5.1% 107,731 -0.8% Sales Revenue 23,564 -2.8% 41,130 1.6% Gross Profit 24,774 1.7% 41,685 5.2% Gross Profit 10,629 -3.6% 18,054 1.6% EBITDA (BNRI) 12,582 -5.5% 18,557 -6.4% EBITDA
Slide 27: Anadolu Efes EBITDA (BNRI) & FCF Generation
Anadolu Efes EBITDA (BNRI) & FCF Generation Free Cash Flow Bridge mTL EBITDA (BNRI) Bridge mTL -5% ~ 13,312 -1,138 -1,646 12,582 -3,229 3,619 524 5,025 -3,158 -731 8,983 8,981 2Q2023 Net COGS Selling, Other 2Q2024 2Q2023 EBITDA Changes CAPEX, net Financial 2Q2024 Revenue Marketing and in WC Inc/Exp
Slide 28: Beer Group EBITDA (BNRI) & FCF Generation
Beer Group EBITDA (BNRI) & FCF Generation EBITDA (BNRI) Bridge mTL Free Cash Flow Bridge mTL -19.5% +2% 5,411 -206 -571 -675 250 2,010 -877 4,356 -1,055 248 7,204 7,383 2Q2023 Net COGS Selling, Other 2Q2024 2Q2023 EBITDA Changes CAPEX, net Financial 2Q2024 Revenue Marketing and in WC Inc/Exp G&A exp
Slide 29: Cash & Debt Management
Cash & Debt Management Anadolu Efes Gross Debt Cash USD 2.3 bn USD 1.6 bn Average maturity 68% 60% 2.9 yrs held in Hard Currency held in Hard Currency Net Debt/EBITDA 23% 0.8x held in Eurozone Beer Group Gross Debt Cash USD 0.8 bn USD 0.8 bn Average maturity 66% 57% 2.9 yrs held in Hard Currency hel
Slide 30: Risk Management
Risk Management Beer Group Beer Group Hedges for 2024: COGS Split for 2023: 8% Commodity : 19% 16% Aluminum: 89% for TR & CIS @$2.350 6% 17% 16% *For 2025: 28% for TR & CIS @$2,389 20% FX Exposure : Barley-Malt & Auxiliary Overhead (Labour Cost) Russia: 100% Hedged Glass Bottle Amortization & Other
Slide 31: Capital Allocation Priorities & 2024 Expectations
CAPITAL ALLOCATION PRIORITIES & 2024 EXPECTATIONS
Slide 32: Capital Allocation Priorities
Capital Allocation Priorities Invest in Brands, Innovation, Product Diversification, Market Development, Digitalization and Production Capacity Maintain Healthy balance sheet by keeping Net Debt / EBITDA btw 1.0x – 2.0x Maximize Shareholder value through dividends with high yield Penetrate & Into ne
Slide 33: Sustainable Shareholder Return
Sustainable Shareholder Return • Consistent Dividend Distribution with Sustainable Free Cash Flow Generation 8.3% 7.7% 6.3% 3.1% 2.4% 2.0% 1.8% 1.7% 1.3% 1.4% 2.4 2.1 1.9 1.9 1.8 mTL 0.5 0.4 0.5 0.3 0.3 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gross Dividend Per Share (TL per 100 Shares) Gr
Slide 34: FY2024 Revised Expectations
FY2024 Revised Expectations Considering the first half performances of the operations and upcoming challenges that lies ahead in the rest of the year, we have revised our FY2024 guidance ANADOLU EFES BEER GROUP SOFT DRINKS GROUP VOLUME Low-single digit growth Mid-single digit growth Flat or to low-s
Slide 35: Sustainability
SUSTAINABILITY
Slide 36: Road to 2030
Road to 2030 Targeting Zero Increasing Getting Stronger our support through for the environment for social impact Diversity & Inclusion Become carbon neutral in all our Our Focus Areas: Increase the representations of operations by 2030 women in our organization from 30% to 51% by 2030 Culture & art
Slide 37: FX Rates
FX Rates 1H2023 1H2024 Δ% AVG 19.86 31.60 59.1% USD/TL PE 25.82 32.83 27.1% AVG 21.47 34.17 59.1% EUR/TL PE 28.15 35.13 24.8% AVG 3.87 2.87 -25.9% TL/RUB PE 3.37 2.61 -22.5% AVG 22.75 14.21 -37.6% TL/KZT PE 17.59 14.36 -18.3% AVG 1.84 1.23 -33.0% TL/UAH PE 1.42 1.23 -12.8% AVG 0.93 0.56 -39.3% TL/MD