Coca-cola Icecek A.s. · BIST:CCOLA
Coca-cola Icecek A.s — FY2015 Earnings Presentation
21 slides from Coca-cola Icecek A.s's earnings presentation, Mar 3, 2016
Slide 1: 2015 Results
2015 Results March 3, 2016 Istanbul
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: Operational Review
Operational Review Burak Başarır - CEO
Slide 4: Highlights
Highlights 4Q15 • Both unit case and transaction figures increased in Turkey • Expansion in Turkey EBITDA margin, driven by stronger pricing and effective opex and cost management • Improvement in international EBITDA margin, supported by better operating profitability in Pakistan Consolidated volum
Slide 5: Turkey volume shows gradual recovery in 2015
Turkey volume shows gradual recovery in 2015 Turkey Volume & Transactions • Number of transactions grew by 6%, ahead of unit case growth 22% 19% • Sparkling transactions grew by 5% 5% 9% • IC share in sparkling exceeds 20% 1% 1Q15 2Q15 3Q15 4Q15 • Revenue per uc grew by 7% in 2015 thanks to successf
Slide 6: Pakistan & Middle East delivers 4% volume growth in 2015
Pakistan & Middle East delivers 4% volume growth in 2015 Pakistan Volume • 6% volume growth in 2015, cycling 17% growth in 2014 12,7% 11,2% • Volatile topline growth throughout the year • Rationalized discounts & improvement in operating 3,0% profitability in 2H15 1Q15 2Q15 3Q15 4Q15 • Protected mar
Slide 7: Central Asia volume contracts by 4% in 2015
Central Asia volume contracts by 4% in 2015 Central Asia Volume • Weak consumer environment due to significant devaluations • Low consumer confidence putting pressure on volumes 0,7% • Kazakhstan volume contracted by low single digits in 2015 while brand 1Q15 2Q15 3Q15 4Q15 -0,7% Coke was flat -7,1%
Slide 8: Financial Review
Financial Review Orhun Köstem - CFO
Slide 9: Introduction to Financial Statements
Introduction to Financial Statements Average Exchange Rates for each Period Quarterly Exchange Rate (local currency per USD) YTD Exchange Rate (local currency per USD) 4Q15 4Q14 Δ% 2015 2014 Δ% Turkey 2,95 2,26 31% 2,72 2,19 24% Pakistan 105 102 3% 102 101 2% Kazakhstan 299 181 65% 222 182 22% Iraq
Slide 10: Top Line Performance
Top Line Performance Consolidated Net Revenue (TL mn) Consolidated Net Revenue (TL mn) • Pricing & volume in TR 1.273 6.724 • Revenue per uc up by 7% in Turkey: • Strong Pricing & Favorable sales mix 1.083 5.985 4Q14 4Q15 2014 2015 • Pricing in int’l operations • Revenue per uc down by 9% in Int’l:
Slide 11: Profitability
Profitability Consolidated EBITDA (TLmn) 16.1% 15.6% 1.051 • Lower gross profit in int’l operations 962 • Opex growth lower than revenue growth 2014 2015 • Effective discount and opex management • Improving operating profitability in Pakistan EBITDA Margins EBITDA Margins • Translation impact of int
Slide 12: Financial Expenses
Financial Expenses Net Interest Expense (TL mn) Net FX Loss (TL mn) • Higher net interest expense due to • Depreciation of TL vs. USD depreciation of TL vs. USD • Net USD/TL exposure of USD 512 mn (2015 end) (USD 509 mn at 2014 end) 12
Slide 13: Leverage and Debt
Leverage and Debt Financial debt (US$ million) Maturity (US$ million) 1.140 1.160 1% 1% 649 6% 13% USD 500m Eurobond 16% + TL & JD & KT USD 100m USPP PKR 86% EUR 194 77% 109 120 USD 53 36 2016 2017 2018 2019 2020 2023 2014 2015 Net Debt (US$ million) Net Debt / EBITDA *12 Months Trailing EBITDA 13
Slide 14: Free Cash Flow
Free Cash Flow Net Operating Cash Capex (TL mn) Free Cash Flow (TL mn) Inc. Working Capital (TL mn) 11.3%* 10.4% 12.3%** 12.3% 2014 2015 874 -738 -829 46 748 10 2014 2015 2014 2015 *NWC/Sales **Capex/Sales Lower NWC/Net Revenue 3 new plants in 2015 Positive FCF despite high capex 14
Slide 15: Commodity & FX Hedging Status 2016
Commodity & FX Hedging Status 2016 Sugar(1) Resin(2) Can FX(3) 10% 30% 37% 47% 70% 63% 53% 90% Hedged Non Hedged Hedged Non Hedged Hedged Non Hedged Hedged Non Hedged (1) Hedge percentage: Turkey and Azerbaijan excluded. (2) Hedge percentage: Only price fixing through suppliers (3) Turkey Raw Materi
Slide 16: Guidance
Guidance Burak Başarır – CEO
Slide 17: 2016 Expectations
2016 Expectations • Transaction growth ahead of uc growth • Higher IC share • Growth in revenue/uc • Margin Expansion • Oil Prices & Devaluation Risk Central Asia 16% Lower • Oil Prices & Devaluation Risk capex Volume Breakdown (2015) Iraq 9% • Comparable base • Strong sparkling growth Positive Turk
Slide 18: Guidance - 2016
Guidance - 2016 Guidance Consolidated – Low-mid single digit volume growth o Turkey – Low single digit volume growth o International – Low-mid single digit volume growth ● Net revenue growth > volume growth ● Flat consolidated EBITDA margin, compared to 2015 18
Slide 19: Q&A
Q&A
Slide 20: Closing Remarks
Closing Remarks
Slide 21: Thank you!
Thank you!