Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — FY2013 Earnings Presentation
28 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Mar 10, 2014
Slide 1: FY2013 Results Conference Call Presentation
FY2013 Results Conference Call Presentation Damian Gammell Onur Çevikel CEO CFO STRICTLY PRIVATE & CONFIDENTIAL 1 10.03.2014
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 Performance
General Overview & Operating Performance by Damian Gammell STRICTLY PRIVATE & CONFIDENTIAL 3
Slide 4: Our Group Strategy
Our Group Strategy New organizational structure in line with the group strategy Maintain our focus on beer and soft drinks brands Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct operating companies to maintain focus, build capabilit
Slide 5: Consolidated Performance
Consolidated Performance Sales Volume Breakdown* (Proforma) FY2013 85.6 82.5 Volume* Turkey Beer 9% International Beer 21% • Consolidated volumes Soft Drinks 70% increased by 3.8 % on a proforma basis *On a combined basis 2012 Proforma 2013 FY2013 Sales Revenue Breakdown* 8,910.1 9,195.8 (Reported)
Slide 6: Soft Drinks Volume Development
Soft Drinks Volume Development Soft Drinks Volume Development - Proforma 1,057.7 936.1 484.2 367.6 Mu/c 573.6 568.5 FY2012 FY2013 proforma proforma Total volumes up by 13.0% y-o-y to 1,057.7 mu/c in FY2013 Turkey volumes up by 0.9% y-o-y to 573.6 mu/c in FY2013 International volumes up by 31.7% y-o-
Slide 7: Beer Sales Volume Development
Beer Sales Volume Development Total Beer Volume Development - Proforma 29.3 25.6 20.7 mhl 18.2 8.6 7.3 FY2012 FY2013 proforma proforma Total beer down by 12.8% y-o-y to 25.6 mhl in FY2013 Turkey beer down by 14.8% y-o-y to 7.3mhl in FY2013 International beer down by 12.0% y-o-y to 18.2mhl in FY2013
Slide 8: Turkey Beer Operations
Turkey Beer Operations Volume Development In FY2013, volumes were under pressure due to: mhl 8.6 7.3 • Higher prices to reflect excise tax FY2012 FY2013 increases Market Share by Volume-FY2013 • Regulatory changes • Competition Nielsen , YTD December 2013 Other • Destocking effect in 4Q2013 vs 4Q201
Slide 9: Turkey Beer Operation’s Strategy
Turkey Beer Operation’s Strategy - Efes Malt, Bomonti Brands - Premiumization strategy - Ekomini Project Execution - Cooler placements - On-trade outlet development - Minimize opex Efficiency - Cost reduction initiatives - Procurement initiatives - Strong focus on building people Relationship capabi
Slide 10: International Beer Operations
International Beer Operations Volume Development-Proforma Softer volume performance in EBI was led by Russian operations. Main reasons being; mhl • Tightened regulatory environment 20.7 18.2 • Higher prices due to excise tax increases FY2012 FY2013 • Lower stocks with distributors in 4Q2013 vs 4Q201
Slide 11: Market Share Development in Russia
Market Share Development in Russia Market Share by Volume* – Russia Other 20.1% Carlsberg 37.1% EFES RUS 13.6% Heineken InBev 14.1% 15.1% Shares of Carlsberg and INBEV include Ukrainian brands • According to Nielsen, EFES RUS’ market share* was 13.6% in FY2013 • Beer market sales volumes in Russia**
Slide 12: Opportunities in the world’s 4th largest beer market
Opportunities in the world’s 4th largest beer market -Kozel leading the premium segment Brands -Relaunches of Zolotoya Bochka, Stariy Melnik, Beliy Medved -New package launches for Gold Mine -Resumed shipments to key accounts Execution -Increasing distribution in modern trade -Network optimization p
Slide 13: Summary
Summary 2013 was another challenging year for beer operations In the short-term, we remain cautious for the beer markets that we are operating In beer business, headwinds are slowing us down but we are taking short-term required actions while executing our long-term strategy; Brands -Focus on
Slide 14: Financial Overview
Financial Overview by Onur Çevikel STRICTLY PRIVATE & CONFIDENTIAL 14
Slide 15: Anadolu Efes Consolidated Operational Snapshot-FY2013 Performance
ANADOLU EFES CONSOLIDATED Operational Snapshot-FY2013 Performance FY2012 FY2013 Growth (%) Total Sales Volume (mhl) 82.5 85.6 3.8% Net Sales (million TRL) 8,910.1 9,195.8 3.2% Gross Profit (million TRL) 4,092.4 3,995.7 -2.4% Gross Profit margin (%) 45.9% 43.5% -248 bps EBITDA (million TRL) 1,715.6 1
Slide 16: Turkey Operational Snapshot-FY2013 Performance
TURKEY Operational Snapshot-FY2013 Performance FY2012 FY2013 Growth (% ) Total Sales Volume (mhl) 8.6 7.3 -14.8% Net Sales (million TRL) 1,604.7 1,517.5 -5.4% Gross Profit (million TRL) 1,106.5 1,055.3 -4.6% Gross Profit margin (% ) 69.0% 69.5% 58 bps EBITDA (million TRL) 550.5 419.7 -23.8% EBITDA m
Slide 17: Turkey Beer Operations Free Cash Flow
TURKEY BEER OPERATIONS Free Cash Flow (m TRL) FY2012 FY2013 EBITDA 550.5 419.7 Change in Inventory -55.4 19.2 Change in Trade Receivables -162.5 73.5 Change in Trade Payables 12.7 -6.6 Change in Other Assets/ Liabilities -34.7 -150.5 Change in Working Capital -239.9 -64.4 Income Taxes & Employee Ben
Slide 18: Efes Breweries International Operational Snapshot
EFES BREWERIES INTERNATIONAL Operational Snapshot-FY2013 Performance FY2012 (Proforma) FY2013 (Proforma) Organic Growth (% ) Total Sales Volume (mhl) 20.7 18.2 -12.0% Net Sales (million USD) 1,585.1 1,300.5 -18.0% Gross Profit (million USD) 725.1 516.3 -28.8% Gross Profit margin (% ) 45.7% 39.7% -60
Slide 19: Efes Breweries International Free Cash Flow
EFES BREWERIES INTERNATIONAL Free Cash Flow (m USD) Reported FY2012 FY2013 EBITDA 237.7 126.7 Change in Inventory -9.1 36.0 Change in Trade Receivables 12.6 -5.4 Change in Trade Payables 36.6 15.0 Change in Other Assets/ Liabilities 2.2 -5.3 Change in Working Capital 42.3 40.3 Income Taxes & Employe
Slide 20: Net Financial Debt & Financing
Net Financial Debt & Financing Anadolu Efes Consolidated Efes Breweries International Consolidated gross debt at 5,275.9 m TRL Consolidated gross debt at US$ 201.5 m Cash & cash equivalents at 2,309.4 m TRL - Net debt position of 2,966.6 m Cash & cash equivalents at US$ 160.8 m - Net debt position a
Slide 21: Closing Remarks
CLOSING REMARKS by Damian Gammell STRICTLY PRIVATE & CONFIDENTIAL 21
Slide 22: Recent Developments in Beer Operations
Recent Developments in Beer Operations Management change Turkey; TL’s depreciation Excise tax increase of 15.6% in January Simultaneous 10.3% rise in average sales price Efes Malt refillable launched in January Other beer operations; Network optimization programme initiated in Russia D
Slide 23: Long Term Beer Group Strategy
Long Term Beer Group Strategy - It’s all about the consumer and Brands delivering choice, innovation and brand love - Great distribution and activation at the Execution point of sale Efficiency - Lean and efficient organisation throughout the supply chain and RTM - with our employees, governments, R
Slide 24: Beer Group’s Strategy for 2014 - 2016
Beer Group’s Strategy for 2014 - 2016 Expand our brand and package portfolio in the premium and mainstream segments in all countries Leverage our SABMiller alliance to provide global and regional brand power Reduce the cost base through capacity reduction, procurement savings and opex reductio
Slide 25: Key Enablers For 2014-2016
Key Enablers For 2014-2016 -The best brands -Lean and efficient manufacturing Efes Pilsen Kozel Bomonti Kruzhka Svezhego Efes Malt Beliy Medved Miller Stary Melnik Chisinau -Strong route to market -Market leading capabilities in marketing and sales -Superior customer relationship -Healthy balance sh
Slide 26: FY2014 Outlook
FY2014 OUTLOOK by Damian Gammell STRICTLY PRIVATE & CONFIDENTIAL 26
Slide 27: 2014 Outlook
2014 Outlook Anadolu Efes consolidated; • sales volumes to grow at a rate of mid-single digit • sales revenue growth to outperform the rise in sales volumes • EBITDA (BNRI) growth to outpace the revenue growth, indicating a margin expansion led by improved margins in both operations, especially in b
Slide 28: Questions Please
? QUESTIONS PLEASE ? STRICTLY PRIVATE & CONFIDENTIAL 28