Coca-Cola Icecek A.S. · BIST:CCOLA
Coca-Cola Icecek A.S — FY2008 Earnings Presentation
22 slides from Coca-Cola Icecek A.S's earnings presentation, Apr 7, 2009
Slide 1: Results for the year ending December 31, 2008
Results for the year ending December 31, 2008 April 7, 2008 Istanbul Michael A. O’Neill – CEO Building & Sustaining a Growth Company Burak Başarır – CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek’s (“CCI”) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally
Slide 3: 2008 Review
2008 Review Strong start in Turkey but momentum eased as year progressed Azerbaijan and Kyrgyzstan performed well and missed the initial impact of economic crisis Strong organic growth in Middle East operations Pakistan doubled consumer base Doğadan ğ non-readyy to drink tea sales & distribution sta
Slide 4: Volume up by 11% in 2008
Volume up by 11% in 2008 Turkey Turkey Volume Volume International Volume Consolidated Volume (Unit cases in millions) (Unit cases in millions) (Unit cases in millions) 533 421 480 382 113 98 2007 2008 2007 2008 2007 2008 Consolidated up by 15% to 105 million 4Q08 Turkey up by 8% to 78 million Inter
Slide 5: Net sales up by 17% in 2008
Net sales up by 17% in 2008 Turkey Net Turkey Net Sales Sales International Net Sales Consolidated Net Sales (CMB - TL in millions) (CMB – US$ in millions) (CMB - TL in millions) Turkey Volume 2,258 1Q08 1,857 1,926 1,600 1 600 311 253 2007 2008 2007 2008 2007 2008
Slide 6: EBITDA up by 14% in 2008
EBITDA up by 14% in 2008 Turkey EBITDA Turkey EBITDA International EBITDA Consolidated EBITDA (CMB - TL in millions) (CMB – US$ in millions) (CMB - TL in millions) Turkeyy Volume 375 324 1Q08 330 274 44 39 17.1% 17.4% 17.5% 12.6% 17.1% 16.6% 16 6% 2007 2008 2007 2008 2007 2008 Consolidated up by 12%
Slide 7: Market Share – Sparkling Beverages
Market Share – Sparkling Beverages 2008 2007 Market Market Position P iti Position Share Share 68.7% #1 66.1% #1 26.3% #2 24.0% #2 na na 46.4% #1 70.0% #1 70.0% #1 53.6% #1 51.6% #1 11.3% #2 12.4% #2 9 4% 9.4% #3 4 4% 4.4% #4 (1) Nielsen (2) MEMRB ((3)) n.a. (4) CCI estimate
Slide 8: Market Share – Still Beverages
Market Share – Still Beverages 2008 2007 Fruit Juices & Fruit Juices & Water W t Water Nectars Nectars Market Market Market Market Position Position Position Position Share Share Share Share 8.3% #3 27.3% #1 7.3% #3 26.8% #1 5 6% 5.6% #3 0 9% 0.9% #9 8.2% % #3 na na 51.4% #1 na na 44.0% #1 na na 6.0
Slide 9: Turkey
Turkey All b beverage categories t i posted t d growth th Consumer promotions such as Euro Cup and Fanta Youth Fest held Non Ready to Drink Tea Doğadan’s sales & distribution started in September Elazığ plant trial production started in December 2008
Slide 10: Turkey – Product Innovations
Turkey – Product Innovations Coca-Cola Zero: Launched Cappy Prebiyotik Tetra 1L & Sprite 3G Can 330ml, Damla Pet 330ml simultaneously in several SKUs Gurme Can330 Pet500ml, Pet 1L Schweppes Champagne Bottle Coca-Cola & Fanta Pet Nestea Pet 1L & Cool Green Doğadan Tea Pet 1L &Tonic Pomegranate 250ml
Slide 11: International Operations
International Operations Volume growth in all international markets Growth in Central Asia Region softened Middle East Region performed well and delivered volume at the top end of guidance Iraq production started in May 2008 Pakistan acquisition was finalized, first time proportional consolidation o
Slide 12: International – Product Innovations
International – Product Innovations Nestea 1L Tetra & 0.5L PET Riwa Water Cappy Pulpy Orange Kazakhstan Syria Kazakhstan, Azerbaijan Burn Piko 2L Tetra Coca-Cola Zero Syria, Jordan Kazakhstan Azerbaijan, Jordan, Iraq
Slide 13: Recent Developments
Recent Developments Negotiations for the Doğadan Acquisition are suspended but expected to resume at a future date CCI s ownership in Turkmenistan CCI’s increased from 33.25% to 59.50%
Slide 14: Financial Review
Financial Review Burak Başarır CFO
Slide 15: Introduction to Financial Statements
Introduction to Financial Statements Basis of Preparation Consolidated / TL/$ $ Year-End I t International* ti l* Turkey Exchange Rates Functional Currency TL USD December 31, 2007 1.1647 Reporting p g Currency y TL USD December 31, 2008 1 5123 1.5123 Net Sales – Net of discounts and special consu
Slide 16: Key Financials – Consolidated
Key Financials – Consolidated ((TL million)) 2008 2007 Change g % 4Q08 4Q07 Change g % Volume (m/c) 533 480 +11% 105 91 +15% Net Sales 2 258 2,258 1 926 1,926 +17% 430 361 +19% Gross Profit 911 784 +16% 148 135 +9% EBIT 260 230 +13% (11) (10) +18% EBITDA 375 330 +14% 14% 21 18 +12% 12% Net Income/ (
Slide 17: Capital Expenditures
Capital Expenditures Capital Expenditures (TL m) 2008 2007 PP&E intangibles 304 268 Acquisitions 123 0 Total 427 268 Total capital expenditures rose by 13% to TL 304 million in 2008, excluding acquisitons Capital expenditures / net sales ratio dropped to 13% in 2008 versus 14% in 2007 (excluding acq
Slide 18: Financial Expenses
Financial Expenses Financial Income / (Expense) Breakdown 2008 2007 Interest income 14 11 Interest expense (-) (47) (42) Foreign exchange gain / (loss) 24 (34) Realized FX gain / (loss) - Borrowings (20) 7 Unrealized FX gain / (loss) - Borrowings (129) 53 Gain / (loss) on derivative transactions (0.
Slide 19: Key Financials
Key Financials (TRY million) December 31, December 31, December 31, December 31, Liabilities & Equity Assets 2008 2007 2008 2007 Cash & cash Short-term debt 254.3 147.8 142.2 219.3 equivalents i l t Accounts rec.& due Accounts payable & due to 202.8 156.0 157.3 123.4 from related parties related par
Slide 20: Debt Structure
Debt Structure Leverage in TL 2008 % 2007 % 2008 2007 Ratios USD 861 84% 379 75% Debt Ratio 42% 31% Euro 142 14% 111 22% Fin.Debt-to-Equity TL 2 0% 12 2% 93% 55% Ratio Other 24 2% 6 1% Interest Coverage Total in TL 1,029 100% 508 100% (EBIT/Interest 7.7x 7.4x Charges), net Maturity Date 2009 2010 20
Slide 21: Closing Remarks
Closing Remarks Michael A. O’Neill CEO
Slide 22: Thank You
Thank You Coca-Cola Icecek Investor Relations Tel: +90 216 528 3386 Fax: +90 216 365 8457 [email protected] www.cci.com.tr