INVESTOR PRESENTATION 1 Strictly Confidential August 15, 2014
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 data. Actual results are subject to future events and uncertainties, which could materially impact the Company’s actual performance. 2 Strictly Confidential
A Total Beverage Company Refreshing 660mn Consumers With A Strong History of Growth... • A world class brand portfolio • In markets with low per capita consumption -Turkey: 11 litres of beer, 45 litres of sparkling beverages -Kazakhstan: 30 litres of beer, 34 litres of sparkling beverages -Pakistan: 15 litres of sparkling beverages # of countries • To a diverse & exciting region with strong GDP growth Refreshing around 660mn consumers in Turkey, CIS and Middle East • Through an experienced and financially strong organisation • Supported through world alliances Population served (mn) 3 Strictly Confidential
Operating Geography Ownership Structure Refreshing around 660mn consumers in SABMiller Yazıcılar Holding Özilhan Sınai Anadolu Endüstri markets with low per capita consumption... Harmony Ltd. 24.0% Yatırım 13.5% Holding 6.0% 23.6% Public ANADOLU EFES 33.0% 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS COCA- COLA İÇECEK 1 TURKEY BEER OPERATIONS 25.6% (CCI) Public INTERNATIONAL BEER OPERATIONS COCA-COLA OPERATIONS • Breweries • Soft Drink Plants (1) 20% held by TCCEC (The Coca-Cola Export Corporation) and 4% by Ö zg ö rkey Holding. * Only the major subsidiaries of the Group are presented 4 Strictly Confidential
Our Group Strategy Maintain focus on beer and soft drinks brands Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct companies to maintain focus, build capability & support investment In our core beer markets, restore margin & share in Russia and Turkey through cost reduction, premium brand focus & optimizing RTM In our CCI markets, drive sparkling category in Turkey, expand margins in Pakistan & Iraq, deliver a full beverage portfolio Improve balance sheet health, FCF, working capital management & a diverse funding strategy 5 Strictly Confidential
Consolidated Financial Performance - 1H2014 EBITDA*(BNRI)** 1H2014 Revenue* 1H2014 Volume* 1H2014 Turkey Turkey Turkey Beer International Beer Beer 27% Beer 8% 16% International 21% Soft Drinks Soft Drinks Beer Soft Drinks 54% 26% 58% International 71% Beer 20% 85.6 24.1% 16.5% 18.2% 17.8% 9,195.8 1,520.2 45.2 5,144.6 42.5 934.7 mhl million TRL 916.6 4,563.5 million TRL 38.9 810.7 3,811.1 2009 2013 1H2013 1H2014 2009 2013 1H2013 1H2014 2009 2013 1H2013 1H2014 Beer Soft Drinks margin *On a combined basis **Non-recurring items amounted to TL9.1 million in 1H2014 6 Strictly Confidential
Beer Operations 7 Strictly Confidential
The Leading Brewer in CIS and Turkey Europe’s 5th largest and the World’s 1 0th largest brewer in terms of sales volume* with No.1 position in most of the markets in which we operate Largest brewer by sales volume in Turkey (1) , Kazakhstan (1) , Moldova (2) , Georgia (3) 3rd largest brewer by sales volume & 2nd largest by value in Russia (1) , the World’s 4th largest beer market (4) 4th largest brewer by sales volume in Ukraine (1) * Company estimate Sources: (1) Nielsen, (2) Retail Zoom Moldova, (3) GAMMA Retail Audit, (4) Canadean Global Beer Trends 2013 8 Strictly Confidential
Breakdown Of Pure Alcohol Consumption 100% 14% 14% 17% 19% 90% 20% 22% 24% 25% 26% 33% 38% 80% 51% 70% 20% 25% 38% 21% 30% 47% 41% 9% 60% 34% 36% 10% 50% 12% 40% 30% 60% 58% 56% 53% 51% 48% 48% 43% 42% 20% 39% 39% 37% 10% 0% Austria Czech Rep. Denmark Finland Germany Ireland Netherlands Poland Spain UK. Turkey Russia Beer Wine Spirits Per Capita Consumption* Austria Czech Rep. Denmark Finland Germany Ireland Netherlands Poland Spain UK Turkey Tu Russia Total Pure Alcohol 13 15 8 10 13 13 10 10 9 9 1 18 Beer 119 174 66 103 124 141 81 99 85 77 13 71 11 61 Source: Euromonitor, Canadean, Company estimate * At legal drinking age except Poland & Denmark 9 Strictly Confidential
Total Beer Market Size & Per Capita Beer Consumption in Operating Markets & in Some Selected Countries Per Capita CAGR Growth 2009-2013 (%) 12% GEORGIA MOLDOVA 7% CHINA POLAND BULGARIA 2% ROMANIA KAZAKHSTAN UKRAINE 0 20 40 60 80 100 120 140 160 CZECH REPUBLIC GREECE USA GERMANY TURKEY SERBIA -3% RUSSIA UZBEKISTAN Per Capita Consumption (lt) -8% Source: Canadean Global Beer Trends 2013, Company estimates * Bubbles represent market size 10 Strictly Confidential
Long Term Beer Group Strategy - It’s all about the consumer and delivering B rands choice, innovation and brand love - Great distribution and activation at the point of sale E xecution - Lean and efficient organisation throughout the supply E fficiency chain and RTM - with our employees, governments, suppliers, R elationship customers... 11 Strictly Confidential
Beer Group’s Strategy for 2014 - 2016 Expand brand & package portfolio in premium and mainstream segments in all countries Leverage our SABMiller alliance to provide global & regional brand power Reduce cost base through capacity reduction, procurement savings & opex reduction in Russia & Turkey Improve customer service & loyalty through store by store execution solutions & great service Protect category availability through innovative retail solutions, experiental marketing & a proactive strategy with regulators Develop profitable new markets for our brands like Ukraine, Central Asia 12 Strictly Confidential
Key Enablers For 2014-2016 - Best brands Kruzhka Svezhego Samuel Adams Efes Pilsen Miller Bomonti Beliy Medved 387 Kozel Stary Melnik Efes Malt Chisinau - Strong RTM - Lean & efficient manufacturing - Market leading capabilities in marketing & sales - Superior customer relationship 1H2014 Net Debt / EBITDA - Healthy balance sheet AEFES 1.7 Consolidated - Working with best people 13 Strictly Confidential
Turkey Beer Operations 14 Strictly Confidential
Developments in Turkey Beer Operations Historical Volume Performance* Negative impact of regulatory changes & higher prices continued in 2Q2014, but at a descending mhl rate despite; 8.5 7.3 adverse weather conditions in June 3.9 3.5 destocking 2009 2013 1H2013 1H2014 *Sales volume including exports Ramadan Market Share Development Other Our performance in 2Q2014 was still better 28% than our estimates Anadolu Efes 72% Source: Nielsen , YTD June 2014 15 Strictly Confidential
Turkey Beer Operation’s Strategy - Focus on Brands in line with LT strategy B rands - New Brands and SKU launches (Launch of ‘’Efes Pilsen Special Edition:10 ’’, ‘’Samuel Adams’’ and ‘’Grolsch’’ as well as ‘’Efes Malt’’ & ‘’Bomonti’’ in returnable SKUs) - Creative & innovative executions to maximize in-store E xecution excellence - Focus on field execution - Cost reduction initiatives E fficiency - Network optimization (Closure of Lüleburgaz plant as of May 1) - Inventory, receivables & payables management to maximize cash flow - Strong focus on improving customer & R elationship consumer engagement 16 Strictly Confidential
Focus on Brands Through a portfolio for all occasions... Duvel Miller Beck’s Samuel Marmara Gold Adams Peroni Grolsch Mariachi 100% brand awareness for Efes Premium Economy 4% 2% Efes Pilsen Marmara Kırmızı Exports to more than 70 countries Efes Pilsen # 1 in consumer spending in Food M34 Özel Seri:10 Mainstream & Beverage category – 8.9% as of Kozel 95% Bomonti January- June 2014 (Nielsen) Efes Pilsen Fıçı Efes Dark 100% penetration in Turkey (June Efes Light Bomonti Unfiltered 2014, Nielsen) Efes Malt Efes Xtra *Numbers may not add up to 100% due to rounding 17 Strictly Confidential
Efficiency & Relationship EFFICIENCY RELATIONSHIP Minimize costs through procurement Proactive relationships with governments savings Working with best people Minimize opex Win-win relationship with suppliers & RTM optimization business partners Increase cooperation with strategic partners Transparent & proactive relationship with shareholders 18 Strictly Confidential
Turkey Beer Financial Performance Volume* Revenue million TRL mhl 8.5 1,517.5 7.3 1,264.2 833.0 3.9 801.8 3.5 2009 2013 1H2013 1H2014 2009 2013 1H2013 1H2014 *Sales volume including exports EBITDA 39.8% 32.4% 30.6% 27.7% million TRL 503.0 419.7 margin 259.8 254.9 2009 2013 1H2013 1H2014 19 Strictly Confidential
International Beer Operations 20 Strictly Confidential
Recommend
More recommend
