Coca-Cola Icecek A.S. · BIST:CCOLA
Coca-Cola Icecek A.S — Non-Deal Roadshow (February 2015)
32 slides from Coca-Cola Icecek A.S's roadshow presentation, Feb 3, 2015
Slide 1: Coca-Cola Icecek, Gulf Roadshow
Coca-Cola Icecek, Gulf Roadshow Dubai, Abu Dhabi and Kuwait February 3 - 5 , 2015
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: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix “CCI business only involves soft drinks, not alcoholic beverages”
Slide 4: CCI at a glance
CCI at a glance Operating in one of the world’s Kazakhstan most dynamic and exciting Kyrgyzstan AZ Turkey Turkmenistan Tajikistan markets Syria Iraq Jordan Pakistan A gateway to Turkey, Pakistan, Central Asia and The Middle Shareholder Structure East Public Held (3) Anadolu Serving close to 370 mill
Slide 5: We are capitalizing on favorable demand and demographic drivers
We are capitalizing on favorable demand and demographic drivers… Per cap 180 Sparkling Beverage Consumption vs GDP (2013) consumption (liters) Mexico 150 Argentina USA Germany 120 Brazil UK 90 Kuwait Spain South Africa Bulgaria Saudi Arabia Oman 60 Hungary Poland Jordan Turkey UAE Iraq Greece Italy
Slide 6: Allowing us to expand successfully
… allowing us to expand successfully CCI expanded by adding +40mn* potential consumers per year over the last 7 years No. of countries Population served* (mn) Operating plants 1 10 71 370 5 23 2004 ……… 2013 2004 ……… 2013 2004 ……… 2013 275mn UC… …424mn UC 480mn UC 533mn UC… …1.06 bn UC 2004… …2006 20
Slide 7: Diversifying across geographies and categories
… diversifying across geographies and categories. Volume Split - Geography Revenue Split Int'l 17% Int'l; 15% Int'l 46% Int'l 44% Turkey Turkey 83% 85% Turkey Turkey 54% 56% 2005 2013 2005 2013 Volume Split - Category EBITDA Split Tea 7% Int'l; 15% Still; 15% Still 20% Int'l 46% Sparkling Turkey 85%
Slide 8: Strong brand positioning and offering in our key markets
Strong brand positioning and offering in our key markets… Turkey Iraq Sparkling 66% Sparkling 26% #1 #2 Juice Water Energy Water 26% 6% #1 #2 Kazakhstan Pakistan Sparkling 48% Sparkling 30% #1 #2 Juice Water Juice Water 21% 10% 2% 9% #2 #3 #7 #3 Sources: Nielsen Retail Panel, 2013 & Retail Zoom. | N
Slide 9: Our focus on turning volume into value
… and our focus on turning volume into value… Revenue Operating Strategic Growth Productivity Expenses Procurement Management Management Segmentation Production Sugar Selling, Marketing 2006 2013 and Distribution Turkey 1.74 1.41 Expenses Jordan 3.44 1.84 Kazakhstan 2.10 1.65 Azerbaijan 2.10 1.92 Av
Slide 10: Drive strong financial performance
… drive strong financial performance. Volume Net Revenues EBITDA (milion uc) (TRL million) (TRL milion) * 17.2% 13.8% 5.186 2.273 1.058 892 484 413 275 1.032 2.913 574 142 479 275 1.032 142 2004 2013 2004 2013 2004 2013 Turkey International Turkey International Turkey International *EBITDA Margin So
Slide 11: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 12: We are delivering on our near term strategic priorities
We are delivering on our near term strategic priorities 12
Slide 13: Highlights in 2014
Highlights in 2014 ● Consolidated – continued volume growth despite significant headwinds ● Turkey – transition towards higher IC share continues ● International – double digit volume growth in line with guidance ● Investments – continued capacity investments in high growth markets ● FCF - Expected
Slide 14: Contribution to Volume Growth - 2014
Contribution to Volume Growth - 2014 Volume Growth Volume Split by Geography* Other 69 mn uc 10% Kazakhstan 9% 4 mn uc Iraq 9% Turkey 1131 51% 1058 mn uc mn uc Pakistan 21% 2013 TR INT'L 2014 Notes: (*) In unit cases 14
Slide 15: Category Growth and Breakdown - 2014
Category Growth and Breakdown - 2014 Category Growth Volume Split by Category 6,1% 6,5% 7,6% NRTD 7,9% Sparkling 5% Tea** 13,7% 8% 14,3% Sparkling Water Water 11% 72,6% 71,1% Tea Sparkling 71% Still exc. Still 16% Water 2013 2014 15
Slide 16: Turkey Overview – 2014
Turkey Overview – 2014 Category Growth Pricing • Number of transactions up • Price increases on the most selling packages • Sparkling – slight contraction effective from October onwards • Still – high teens • Water – low single Packaging Mix Cost and Opex • Successful new IC package launches • FX im
Slide 17: International Overview – 2014
International Overview – 2014 ● Pakistan – successful campaigns supported volume +17% growth despite headwinds +19% ● Kazakhstan – strong sparkling growth and market share gains in sparkling, ice tea and juice +6% categories ● Iraq – volume growth in S.Iraq compensated for the contraction in N.Iraq
Slide 18: Contents
Contents ● Business Overview & Strategy ● Operational Review ● Financial Review ● Appendix
Slide 19: Top Line Performance
Top Line Performance Consolidated 9M14 9M13 Change % 3Q14 3Q13 Change % Volume (m/uc) 933 854 9.2% 365 337 8.2% Net Revenue (TL million) 4,903 4,184 17.2% 1,925 1,693 13.7% Net Revenue per UC (TL) 5.26 4.90 7.3% 5.28 5.02 5.1% 9M14 9M13 Change % 3Q14 3Q13 Change % Turkey Volume (m/uc) 480 462 3.8% 1
Slide 20: Profitability
Profitability (TL million) 9M14 9M13 Change % 3Q14 3Q13 Change % Consolidated EBIT 636 570 11.7% 290 275 5.4% EBIT Margin 13.0% 13.6% 15.0% 16.2% EBITDA 891 787 13.2% 374 350 6.8% EBITDA Margin 18.2% 18.8% 19.4% 20.7% Net Income/(Loss) (excl. One-off) 352.2 296.6 18.7% 127.6 146.5 (12.9%) (TL millio
Slide 21: Financial Expenses
Financial Expenses (TL million) 9M14 9M13 Interest income 31 24 Interest expense (-) (112) (65) Foreign exchange gain / (loss) 68 33 Realized FX gain / (loss) – Borrowings (26) (0) Unrealized FX gain / (loss) – Borrowings (116) (179) Gain on Derivative Transactions 3 0 Financial Income / (Expense) N
Slide 22: Financial Debt Profile
Financial Debt Profile Financial Debt (US$ million) Maturity (US$ million) 1,446 1,042 622 USD 5% 1% 8% EUR 4% 2% TL 125 120 90% 90% 50 80 24 21 Others 2014 2015 2016 2017 2018 2020 2023 2013 9M14 Net Debt (US$ million) 2013 9M14 Change % Net Debt/EBITDA 1.8x 1.7x Total Financial Debt 1,446 1,042 -2
Slide 23: Free Cash Flow
Free Cash Flow Net Operating Cash Capex (TL million) Free Cash Flow (TL million) Incl. Working Capital (TL million) 607 407 9M13 9M14 188 -400 -419 7 9M13 9M14 9M13 9M14 23
Slide 24: Appendix
Appendix ● Financial Statements 2013 ● Corporate Structure ● Country Data ● Turkey AFB Market ● Trade Structure in Turkey
Slide 25: Introduction to Financial Statements
Introduction to Financial Statements Basis of Preparation Consolidated / International Turkey $/TL $/TL Year-End Average Functional TL USD Currency December December 2.1343 1.9033 31, 2013 31, 2013 Reporting TL USD December December Currency 1.7826 1.7922 31,2012 31,2012 Presentation ∆ 19.7% ∆ 6.2%
Slide 26: Top Line Performance & Profitability
Top Line Performance & Profitability * 2013 2012 Change % Consolidated 2013 2012 Change % (TL million) EBIT 594 486 22.3% Volume (m/uc) 1,058 936 13.0% EBIT Margin 11.5% 10.9% EBITDA 892 730 22.2% Net Revenue 5,186 4,449 16.6% EBITDA Margin 17.2% 16.4% Net Revenue per UC (TL) 4.90 4.75 3.2% Net Inco
Slide 27: Corporate Structure
Corporate Structure Coca-Cola İçecek A.Ş. 100.00% Tonus Turkish-Kazakh Joint 100.00% Venture L.L.P, CCI International Holland B.V. Coca-Cola Satış ve Dağıtım The Netherlands 99.96% Kazakhstan A.Ş., Turkey J.V. Coca-Cola Almaty Bottlers 51.23% L.L.P., Kazakhstan 48.77% Mahmudiye Kaynak Suyu 100.00%*
Slide 28: Country Data
Country Data % of pop. GDP per Per cap cons CCI’s Pop. in CCI’s 2013 below 30 cap. in of spark. m.share in Country 2013 Vol. years 2013 bev. in 2013 spark. bev. (mln) (3) Breakdown (3) ($) (2) (L) (4) in 2013 (5) Turkey 76.7(1) 50% 15,264 44 66% 54.2% Pakistan 184.4 64% 3,144 17 30% 19.5% Kazakhstan
Slide 29: Building a Sustainable Growth Business
Building a Sustainable Growth Business Energy usage ratio (MJ lt of product) TCCC EAG President’s 2005 2013 1,69 Sustainability Awards ● Best Country Bottling Coca-Cola Operation Award 0,41 System Average 0,41 0,40 0,43 ● Winner: Turkey 2009 & 2013 0,27 0,26 0,28 ● Finalist: Jordan & Azerbaijan 2013
Slide 30: Turkey AFB Market
Turkey AFB Market AFB Market RTD AFB Market 5.5 billion uc (excluding milk) 1.5 billion uc (excluding milk) Other 2,8% Ayran 3,1% Sparkling Water 7,5% HOD 23,0% Fruit Juices & Sparkling Tea Still Drinks Beverage 44,9% 10,7% s 39,3% RTD AFB 27,7% Bottled Water Hot 36,6% Coffee 2,5% Powder & Concentra
Slide 31: Trade Structure in Turkey
Trade Structure in Turkey ● Half of volume delivered by traditional trade channels ● Highest retail coverage among all FMCG categories in Turkey Hypermarket Other 2% 0% Discount Store 6% On Premise Tradition 20% al Grocery 47% Supermarket 24% Source: Company Notes: On Premise Includes caterings, uni
Slide 32: Credit Rating and Glossary
Credit Rating Glossary • Long Term Issuer Rating, ‘Baa3’, Stable Outlook AFB: Alcohol Free Beverages (Moody’s rating, Apr 15, 2014) • Foreign Currency Senior Unsecured rating and CAGR: Compound Annual Growth Rate CMB: Capital Markets Board of Turkey IDR ‘BBB’, Stable Outlook • Local Currency Senior