İş Yatırım Bodrum Conference June 7, 2013

Transcription

1 İş Yatırım Bodrum Conference June 7, 2013

2 Business Overview & Strategy 1Q13 Operational Review 1Q13 Financial Review Going Forward Appendix

3 We are Operating in one of the world s most dynamic and exciting markets CAGR: Sales volume: 15% Net Sales: 19% EBITDA: 22% Shareholder Structure A gateway to Turkey, Pakistan, Central Asia and Middle East Serving more than 360 million of people; 60% of our population is below 30 years of age 2012 volume growth of 12% (1) Anadolu Efes and its fully-owned subsidiaries (2) TCCC and its fully-owned subsidiaries (3) Listed on Borsa Istanbul 3

4 capitalizing on favorable demand and demographic drivers Per Cap Consumption in Liters (2012) CCI territory total population: over 360 million Median Age Source: CCI and United Nations 4

5 allowing us to expand succesfully # of Countries 318 mn UC 850 mn UC 10 S.Iraq Pakistan Syria N. Iraq Population Served (mn) mn UC Operating Plants

6 diversifying across geographies and categories. Volume split (uc) - Geography Revenue Split Int'l 33% Int'l 33% Turkey 67% Turkey 67% Volume split (uc) - Category EBITDA Split Still 22% Tea 8% Int'l 15% Int'l 37% Sparkling 70% Turkey 85% Turkey 63%

7 Our operating model entails Management of diversity Local relevance Empowerment Local accountability Leverage technology for customer service 7 7

8 so that we inspire consumers, customers and people Consumers Fulfillment Customers Innovation Relationship Serve T rust People HIGH-PERFORMANCE EMPOWERMENT 2012 ALIGNMENT

9 and enjoy strong positions in key markets. Turkey * Pakistan Kazakhstan Azerbaijan 67% #1 29% #2 42% #1 59% #1 25% #1 2% #8 19% #1 13% #2 7% #3 10% #3 8% #3 50% #1 Source: Nielsen * Market share numbers are restated due to a change in forecasting universe 9

11 1Q13 Review Double digit volume and revenue growth Net revenue per case up 4% Favorable cost environment Improved operating margins

12 Volume up by 20% in 1Q13 Turkey Volume International Volume Consolidated Volume (Unit cases in millions) (Unit cases in millions) (Unit cases in millions) Q12 1Q13 1Q12 1Q13 1Q12 1Q13 12

13 1Q13 Sales Volume Breakdown Volume split (uc) - Geography 1Q13 Volume split (uc) - Category 1Q13 Tea 11% Turkey 59% Int. 41% Still 22% Sparkling 67% 13

14 Promotions Product introductions Turkey Coca-Cola, Coca-Cola Light, Coca-Cola Zero, Fanta, Sprite, Can 250 ml Strong sparkling category growth Coke Zero re-launch New launches addressing IC Cappy Pulpy Lemonade, 1lt Coca-Cola Zero 1.75lt Sprite 1.5lt consumption 14

15 International Operations Product introductions Promotions Strong local marketing campaigns Kazakhstan +%37% Increased market penetration Coke studio now in Iraq and Jordan Jordan Coca-Cola Can 355 ml Central Asia Bonaqua Pet 500ml,1 L,1.5L Pakistan +17%

16 International Operations International Volume Split 1Q13 Kazakhstan +%37% Kazakhstan 20% Kyrgyzstan 3% Azerbaijan +27% Pakistan 40% Azerbaijan 6% Iraq +215% Syria 0% Tajikistan 0% Iraq 22% Turkmenistan 5% Jordan 3% Pakistan +17% 16

18 Net sales up by 25% in 1Q13 Turkey Net Sales International Net Sales Consolidated Net Sales (TL in millions) (US$ in millions) (TL in millions) Q12 1Q13 1Q12 1Q13 1Q12 1Q13 18

19 EBITDA (Excl. other) up by 55.4% in 1Q13 - Proforma Turkey EBITDA Turkey EBITDA International EBITDA Consolidated EBITDA (TL in millions) (US$ in millions) (TL in millions) 12.5% 13.6% * 13.2% * 11.1% * 4.1% 13.9% Q12 1Q13 1Q12 1Q13 1Q12 1Q13 *EBITDA Margin 19

20 Financial Expenses - Proforma 1Q13 1Q12 Interest income Interest expense (-) (19.5) (16.0) Foreign exchange gain / (loss) 1.0 (23.1) Unrealized FX gain / (loss) - Borrowings (12.1) 60.7 Gain / (loss) on derivative transactions (0) (0) Financial Income / (Expense) Net (21.7) 29.5 *mn TL 20

21 Debt Structure - Proforma 1Q13 FY12 Change% USD denominated* EURO denominated* TL denominated Other (in USD terms) Total Financial Debt in TL ,875 1,822 2% -7% -4% 4% 3% Total Cash & Equivalent in TL (16%) Net Debt in TL 1,363 1,215 12% Net Debt in US$ % Maturity Date % of total long term debt % 90% 4% 0% *In original currency 21

23 Going Forward Accelerate revenue and margins in International, focus on Iraq and Pakistan Grow the sparkling category and per caps in Turkey Improve Balance Sheet health every year Continue to build and enhance our reputation Build a world class organization EBITDA Growth>Net Revenue Growth>Volume Growth 23

24 2013 Guidance Consolidated volume is to grow Turkey volume up at mid to high single digit growth Int l volume up at mid to high teens (organic basis) Net revenue growth > volume growth EBITDA growth Net revenue growth 24

25 Appendix Financial Statements 2012 Financial Leverage 2012 Corporate Structure Country Data Building a Sustainable Growth Business Turkey AFB Market Tea Market Segments in Turkey Trade Structure in Turkey

26 Introduction to Financial Statements Basis of Preparation Consolidated / Turkey International TL/$ Year-End TL/$ Average Functional Currency Reporting Currency TL TL USD USD December 31, December 31, December 31, December 31, Presentation Accounting standard is IFRS as per regulations of the Capital Markets Board of Turkey (CMB). The Group s interest in joint ventures is accounted by way of proportionate consolidation. The functional currency of CCBPL is Pakistan Rupee (PKR). Definitions Net Sales Net of discounts and special consumption tax for Turkish operation -5.6% 7.3% Inflation Annual December 31, % EBITDA = EBIT + Amortization & Depreciation + Relevant Non Cash Expenses including Provision for Employee Benefits - Relevant Non-cash income including Negative Goodwill 26

27 Income Statement - Consolidated (TL mn) Change % Volume (m/uc) % Net Sales 4, , % COGS (2,543.9) (2,145.8) 18.6% Gross Profit 1, , % OPEX (1,113.1) (939.9) 18.4% Other Inc/Exp (Net) (1.2) 5.4 (121.8%) EBIT % EBIT (exc. other) % Income Before Minority Int. & Tax % Minority Interest (4.8) (1.2) 302.9% Income Tax (97.6) (41.9) 133.0% Net Income/(Loss) % EBITDA % EBITDA (exc. other) Gross Margin 38.4% 37.0% EBIT Margin 11.5% 9.6% EBIT Margin (exc. other) 11.5% 9.5% EBITDA Margin 16.6% 14.3% % EBITDA Margin (exc. other) 16.5% 14.2% 27

28 Income Statement - Turkey (TL mn) Change % Volume (m/uc) % Net Sales 2, , % COGS (1,604.6) (1,476.1) 8.7% Gross Profit 1, % OPEX (852.5) (752.2) 13.3% Other Inc/Exp (Net) (54.3%) EBIT % EBIT (exc. other) % Income Before Minority Int. & Tax % Minority Interest - - Income Tax (65.1) (21.8) (198.2%) Net Income/(Loss) % EBITDA % EBITDA (exc. other) Gross Margin 41.8% 40.3% EBIT Margin 11.3% 10.8% EBIT Margin (exc. other) 10.9% 9.9% EBITDA Margin 15.8% 14.7% % EBITDA Margin (exc. other) 15.4% 13.8% 28

29 Income Statement - International (USD mn) Change % Volume (m/uc) % Net Sales % COGS (528.0) (417.1) 26.6% Gross Profit % OPEX (150.4) (115.4) 30.3% Other Inc/Exp (Net) % EBIT % EBIT (exc. other) % Income Before Minority Int. & Tax % Minority Interest (3.3) (0.7 ) n.m Income Tax (17.5) (10.6) 65.8% Net Income/(Loss) % EBITDA % EBITDA (exc. other) Gross Margin 31.5% 27.6% EBIT Margin 12.2% 7.9% EBIT Margin (exc. other) 12.0% 7.6% EBITDA Margin 18.6% 14.6% EBITDA Margin (exc. other) 18.1% 14.5% % 29

30 Balance Sheet FY12/FY11 (TL million) December December 31, December December 31, 2011 (TL million) 31, , 2011 (audited) (audited) (audited) (audited) Cash & Cash Equivalents ST Borrowings Investments in Securities Trade Payables Trade Receivables and Due from Related Parties Due to Related Parties Inventories Other Payables Other Receivables Provision for Corporate Tax Other Current Assets Provision for Employee Benefits Total Current Assets 1, ,419.9 Other Liabilities Property, Plant and Equipment 1, ,707.2 Total Current Liabilities Intangible Assets (including goodwill) LT Borrowings 1, ,508.6 Deferred Tax Assets Provision for Employee Benefits Other receivables and non-current assets Other Liabilities Total Non-current Assets 2, ,367.7 Deferred Tax Liability TOTAL ASSETS 4, ,787.6 Total Non-Current Liabilities 1, ,591.4 Minority Interest Shareholders Equity 1, ,650.0 TOTAL LIABILITIES and SHAREHOLDER S EQUITY 4, ,

31 Free Cash Flow (TL mn) Cash Flow From Operating Activities Net Income Adj for Non-Cash Items Interest Paid (53.9) (51.8) Interest Received Taxes Paid (102.1) (30.0) Employee Termination Benefits, Vacation Pay, Mngmt Bonus (40.2) (33.8) Operating Cash Flow % Change in Working Capital (11.9) (162.2) Operating Cash Flow post Change in WC % Cash Flow Investing Activities Property, Plant and Equipment (366.5) (499.1) Acquisitions Free Cash Flow (56.6) (212.1) (73.3%) 31

32 Financial Leverage and FCF Net Debt/EBITDA Capex/Net Sales (Excluding acquisitions) 2.3x 14.6% 1.6x 14.0% FY11 FCF FY12 FY % ROIC FY12 (Excluding acquisitions) (TL million) (mn TL) 11.3% % FY11 (212) (mn TL) FY12 FY11 FY12 32

33 Corporate Structure Coca-Cola İçecek A.Ş % Coca-Cola Satış ve Dağıtım A.Ş., Turkey 99.96% 99.23% Tonus Turkish-Kazakh Joint Venture L.L.P, Kazakhstan CCI International Holland B.V. The Netherlands Mahmudiye Kaynak Suyu Ltd. Şti., Turkey 99.99% 51.23% J.V. Coca-Cola Almaty Bottlers L.L.P., Kazakhstan %* 48.77% Efes Sınai Dış Ticaret A.Ş, Turkey 99.60% 83.57% 70.49% Azerbaijan Coca-Cola Bottlers L.L.C, Azerbaijan 99.87%* Coca-Cola Bishkek Bottlers CJSC, Kyrgyzstan %* 16.31% 29.51% Turkmenistan Coca-Cola Bottlers, Turkmenistan Coca-Cola Beverages Pakistan Ltd., Pakistan 59.50% 49.39% The Coca-Cola Bottling Company of Jordan Ltd., Jordan Syrian Soft Drink Sales and Distribution L.L.C., Syria 90.00% 50.00% Al Waha for Soft Drinks, Juices, Mineral Water, Plastics and Plastic Caps Production L.L.C., Iraq 64.94%* 85.00% Waha Beverages B.V, The Netherlands 76.40% CC for Beverage Industry Ltd., Iraq % Coca-Cola Beverages Tajikistan L.L.C., Tajikistan % * Direct and indirect 33

34 Country Data Population (mn) in 2012 (2) % of population below 30 years (3) GDP per capita in 2012 ($) (2) Per capita consumption of sparkling bev. (L) in 2012 (4) CCI s market share in sparkling bev. in 2012 (5) CCI s 2012 Volume Breakdown Turkey 75.6(1) 51% 15, % 66.8% Pakistan % 2, % 9.8% Kazakhstan % 13, % 8.2% Azerbaijan % 10, % 4.5% Iraq % 4, % Jordan % 6, % Turkmenistan % 8, % Kyrgyzstan % 2, % Syria % 4,814 (6) % Tajikistan % 2, % Sources: TUIK (1), IMF (2), UN estimates (3), CCI & TCCC Estimates (4), Nielsen (5), CCI Estimate (6) 34

35 Building a Sustainable Growth Business CCI Turkey Best Country Bottling Operation at 2009 TCCC EAG President s Environment Awards CCI Ankara Plant Quality Achievement Reward at 2011 TCCC EAG National Quality Awards Water usage ratio (lt water/lt product) Energy usage ratio (MJ lt of product) Coca-Cola System Average Coca-Cola System Average Turkey Jordan Kazakhstan Azerbaijan Turkey Jordan Kazakhstan Azerbaijan 35

36 Turkey AFB Market AFB Market (exc. milk) 5.5 billion uc RTD AFB Market (exc. milk) 1.5 billion uc Tea 44.4% Sparkling Water 6.7% Other 2.9% Powder&Concentrate 1.6% RTD AFB 28.2% Ayran 9.9% Sparkling Beverages 38.7% Hot Coffee 2.4% HOD 23.4% Fruit Juices&Still Drinks 10.2% Bottled Water 31.5% Source: Canadean, 2012 Hot tea category constitutes 44% of alcohol-free beverages RTD- Ready-to-Drink Beverages AFB- Alcohol Free Beverages 36

37 Tea Market Segments in Turkey Volume 3.2 bn uc Value * 0.9 bn $ Teapotbag 4.8% Teabag 1.4% Teapotbag 8.4% Teabag 5.3% Loose 93.8% Loose 86.3% Source: Nielsen, 2012 Source: Nielsen, 2012 Very high levels of hot tea consumption Has the highest share of throat after tap water 95% of Turkish people drink tea everyday World s highest per capita consumption * Nielsen datas are excluding on-premise consumption channels 37

38 Trade Structure in Turkey Retail Volume by Channel (2012) Other 0% Gas Station 2% Hypermarket 2% Discount Store 5% On Premise 21% Traditional Grocery 47% Supermarket 23% Half of volume delivered by traditional trade channels Highest retail coverage among all FMCG categories in Turkey *Other includes game houses, entertainment, gymnasium, travel, accomodation, transportation, education, workplace and military. Source: Company 38

39 Glossary AFB: Alcohol Free Beverages CAGR: Compound Annual Growth Rate CMB: Capital Markets Board of Turkey HOD: Home and Office delivery water OWB: One Way Bottle RTD: Ready-to-Drink Beverages UC: Unit Case (1 uc equals liters) YTD: Year to Date Coca-Cola Icecek Investor Relations Tel: Fax: Deniz Can Yücel Investor Relations Manager Tel: Credit Rating Foreign Currency Senior Unsecured rating and IDR BBB, Stable Outlook Local Currency Senior Unsecured and IDR, BBB, Stable Outlook (Fitch Rating, Feb. 5, 2013) Corporate Governance Rating of 8.88 (out of 10) (Saha Rating, July 2, 2012) Borsa Istanbul: CCOLA.IS Bloomberg: CCOLA TI Reuters: CCOLA.IS