Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Q1 2020 Earnings Presentation
29 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, May 2020
Slide 1: Investor Presentation May 2020
May 2020 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 available
Slide 3: We are better together
We are better together… People Business Communities Protect our People Sustain our Business Support our Communities 4
Slide 4: Adapting to new normal
Adapting to new normal… Post Crisis Recovery & Crisis Adaptation • Leverage learnings to adapt to new normal Management • Reassess brand & SKU strategy • Scenario planning • Reconfigure procurement & supply chain • Revised demand & production planning • Zero based OPEX & Capex spend Initial • Altern
Slide 5: Anadolu Efes At a Glance
Anadolu Efes At a Glance 700 mn consumers Europe’s 5th* , World’s 10 th* largest brewer 21 Breweries* & 26 Bottling Plants 7th largest Coca-Cola bottler 111** mhl sales volume 48.4 mhl brewing capacity 23.3** billion TL sales revenue 1.5 bn u/c bottling capacity 4.1** billion TL EBITDA 2.3** billion
Slide 6: Ownership Structure
Ownership Structure 100% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS -Turkey Beer Operations -International Beer Operations (EBI) 50% Russia 100% Kazakhstan 96.9% Moldova 100% Georgia 50% Ukraine 6
Slide 7: Investment Theme
Investment Theme Diversified business model including beer and soft drinks Strategic Partnership with World’s leading FMCG companies; AB InBev & TCCC Strong brand portfolio including some of the world’s best known brands and strong regional brands Abundant potential in demographics Proven track reco
Slide 8: International beer and soft drinks operations contributed positively to first quarter results
International beer and soft drinks operations contributed positively to Anadolu Efes’ first quarter results… VOLUMES Strong volume growth achieved in International Beer & Soft Drinks +3.7% Turkey beer under pressure starting from mid-March REVENUE Higher prices per hl +15.3% Positive currenc
Slide 9: Anadolu Efes 1Q 2020 Financial Highlights
Anadolu Efes 1Q 2020 Financial Highlights Turkey Beer International Beer Soft Drinks VOLUMES 108.8 Breakdown 20.5 mhl up 3.7% 4% 30% 66% REVENUE Breakdown 4.5 bn TL 58% up 15.3% 7% 35% EBITDA (BNRI) 0.3 bn TL down 23.4% margin -337 bps *1Q2019 financials are restated to exclude Doğadan as per the an
Slide 10: Beer Operations Appendix
BEER OPERATIONS APPENDIX
Slide 11: Beer Group Strategic Priorities
Beer Group Strategic Priorities OPERATIONAL FINANCIAL PEOPLE BRANDS DISCIPLINE & CUSTOMERS & EXPANSION & EXCELLENCE STAKEHOLDERS VALUE CREATION CONSUMERS GROWTH Nurturing our Providing Building Achieve Enhancing Building Expanding our talents by choice, great competitive profitable Customer relation
Slide 12: Beer Operations At a Glance
Beer Operations At a Glance Since 1969 World’s Europe’s 10th* largest player 5th* largest player 6 operating 21 breweries Leader** countries in all countries +8,800 employees 100+ brands 70+ export countries *The Barth Report 2018/2019 **January-December 2019 Nielsen, Company Estimate Strictly Confi
Slide 13: Strong Positions in all Operating Geography
Strong Positions in all Operating Geography Kazakhstan: Turkey: Beer market size of 5.9 mhl1 Leading brewer Per capita consumption of 32 liters1 Per capita consumption of 11 liters1 #1 player Moldova: Russia: Beer market size of 1.1 mhl1 World’s 6th largest beer market Per capita con
Slide 14: Catalysts & Challenges
Catalysts & Challenges Low per capita consumption Developing economies Young populations Westernization/Urbanization Regulations Taxation Poor consumer confidence 14
Slide 15: 1Q 2020 Beer volume growth driven by international, offsetting softer Turkey volumes
1Q 2020 Beer volume growth driven by international and compensating softer volumes in Turkey… BEER GROUP SALES VOLUME VOLUME BREAKDOWN* BY COUNTRY Kazakhstan Other Turkey 6% 4% 11% 6.7 7.0 Ukraine 15% mhl 5,8 6,2 0,9 0,7 Russia 1Q2019 1Q2020 64% Turkey International *Breakdown on combined basis Turk
Slide 16: Russian Beer Operations
Russian Beer Operations World’s 6th largest beer market* with 77 mhl market size Per capita consumption of 53 liters* 29.8 brewing capacity with CUR ~70% is the market leader with ~28% market share Clear market leader in Super Premium & Premium segments with upside potential in the rest
Slide 17: Turkey Beer Operations
Turkey Beer Operations Low per capita consumption of 11 liters* offering a growth potential Growing population with 1.4% annual growth rate in 2019 Leading brewer** in the market 3 Breweries with 7.0 mhl capacity 2 Malteries & 1 Hops Processing Facility enabling vertical integration for ke
Slide 18: Soft Drink Operations Appendix
SOFT DRINK OPERATIONS APPENDIX
Slide 19: Strategic priorities in core business to create value
Strategic priorities in core business to create value Accelerate Win at the Exercise Financial Win with People Growth Point of Sale Discipline • Full-beverage portfolio • Increase outlet coverage • Productivity savings • Integrated Talent Strategy • Revenue Growth • Increase cooler penetration • Wor
Slide 20: A multinational beverage company – Coca-Cola Icecek
A multinational beverage company – Coca-Cola Icecek • 10 countries, ~400 mn people KAZAKHSTAN • 26 production plants with 126 lines AZERBAIJAN • 1.5 bn UC(1) annual production capacity KYRGYZSTAN TURKEY TURKMENISTAN TAJIKISTAN • ~780 thousand sales points SYRIA IRAQ • 1.3 bn UC sales volume JORDAN •
Slide 21: Successful track record of growth, with the right focus and excellence in execution
Successful track record of growth, with the right focus and excellence in execution VOLUME REVENUE EBITDA 4x 11% 10x 18% 12x 19% CAGR 2005-2019 CAGR 2005-2019 CAGR 2005-2019 Single country in Expanding into Central Asia and North JV in Pakistan in South Iraq in A regional bottler today… 2005… Iraq i
Slide 22: Rising performance
Rising performance… Growth TL million 2019: Continuation of quality growth algorithm 2019: Highest free cash flow *Includes TFRS 15 adjustments 22
Slide 23: Financial Overview Appendix
FINANCIAL OVERVIEW APPENDIX
Slide 24: Balance Sheet & Risk Management
Balance Sheet & Risk Management •Current cash balances •No long term • High hedge coverage •Beer Group Net Debt / refinancing needs in Risk Management Debt Management Cash Management Liquidity & Leverage for short term FX cover short term EBITDA ratio 2.0x 2020 exposure financial debt •More than 90%
Slide 25: EBITDA (BNRI) 1Q20
Beer profitability impacted pricing & calendarization of OPEX 1Q20 ANADOLU EFES BEER GROUP TURKEY BEER EBI 4.514 3.913 Net Sales 15% 1.740 9% 1.892 1.571 -17% 1.357 16% 374 312 1Q2019 Restated 1Q2020 1Q2019 1Q2020 1Q2019 1Q2020 1Q2019 1Q2020 Margin: 31.0% 29.9% 30.0% 27.0% 49.4% 41.6% 23.9% 23.4% Gr
Slide 26: EBITDA (BNRI) FY19
EBITDA margin expanded & recorded highest FCF FY19 ANADOLU EFES BEER GROUP TURKEY BEER EBI 23.314 19.164 22% Net Sales 30% 11.069 8.541 32% 8.765 21% 6.633 1.870 2.255 2018 Proforma 2019 2018 Proforma 2019 2018 2019 2018 Proforma 2019 Margin: 35.4% 37.7% 38.1% 41.4% 56.4% 54.2% 32.6% 37.7% Gross Pro
Slide 27: Anadolu Efes FCF
Solid Cash Flow Generation Tight Working Topline growth & Prudent Capex Capital margin expansion Spending Management Beer Group FCF 2,335 Anadolu Efes FCF TL million 1,294 TL million 376 70 45 2013 2019 2013 2019 27
Slide 28: 2020 Beer Group Outlook
2020 Beer Group Outlook • Given the uncertainties, 2020 guidance withdrawn • Second quarter results critical to give a more concrete and detailed guidance Decline by low- EBITDA margin Will not exceed double digits contraction in FY previous year’s on annual basis to be less than 1Q level EBITDA Cap
Slide 29: Thank You
THANK YOU APPENDIX