Coca-cola Icecek A.s. · BIST:CCOLA
Coca-cola Icecek A.s — Q1 2015 Earnings Presentation
26 slides from Coca-cola Icecek A.s's earnings presentation, May 6, 2015
Slide 1: First Quarter 2015 Results
First Quarter 2015 Results May 6, 2015 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: Burak Başarır – CEO
BURAK BASARIR — CEO Cala Steech
Slide 4: Our vision and strategy remains the same…
Our vision and strategy remains the same… 4
Slide 5: Highlights in the first quarter
Highlights in the first quarter Volume Split by Geography • Net revenue and EBITDA growth in a challenging environment • Volume decline seasonally in the smallest quarter, Other cycling the high base in 1Q14 with significant headwinds Kazakhstan 7% in all markets 10% • Improved Turkey profitability
Slide 6: Contribution of regions to volume
Contribution of regions to volume Volume (mn UC) 224 -10 0 +5 218 1Q14 TR Central Pakistan & 1Q15 Asia ME 6
Slide 7: Category Growth and Breakdown
Category Growth and Breakdown Volume Split by Category Category Growth Still & Water NRTD Tea 10,1% Sparkling & NRTD Tea Water 14,3% Still 6,4% Sparkling 69,2% 7
Slide 8: Turkey profitability improves
Turkey profitability improves • Weak consumer environment, unfavorable weather, strong base in 1Q14 • Excluding NRTD tea, volume down by 5% • Sprite brand registered almost 50% growth • Ice tea continued to grow at double digits • NRTD tea contracted at double digits Category Growth Still & Water Sp
Slide 9: Pakistan & Middle East delivers 8% volume growth
Pakistan & Middle East delivers 8% volume growth • Pakistan volume up by 13% • Iraq volume declined by 1% • Continued market share gains • Security problems continued to put pressure on volume in the North • Strong sparkling growth supported by 18% brand Coca-Cola growth • Challenging trading enviro
Slide 10: Central Asia volume remains almost flat
Central Asia volume remains almost flat • Currency devaluations in Azerbaijan, Kyrgyzstan, Turkmenistan • Azerbaijan volume contracted by 8% • Both Tajikistan and Turkmenistan grew at double digits • Kazakhstan volume contracted by 2%, cycling a very strong base of 35% growth in 1Q14 • Challenging c
Slide 11: Orhun Köstem – CFO
ORHUN KOSTEM —- CFO Cala Steech
Slide 12: Introduction to Financial Statements
Introduction to Financial Statements Average Exchange Rates Quarterly Exchange Rate (local YTD Exchange Rate (local currency currency per USD) per USD) 1Q15 1Q14 Δ% 2014 2013 Δ% Turkey 2,46 2,21 11% 2,19 1,90 15% Pakistan 101 104 (2%) 101 102 (1%) Kazakhstan 185 170 8% 179 151 19% Iraq 1200 1165 3%
Slide 13: Financial Highlights
Financial Highlights Volume (mn UC) Net Revenue (mn TL) EBITDA (mn TL) 1148 +13 +42 1203 224 -10 +5 218 151 +11 -0 162 1Q14 TR Int'l 1Q15 1Q14 TR Int'l 1Q15 1Q14 TR Int'l 1Q15 13
Slide 14: Top Line Performance
Top Line Performance Consolidated 1Q15 1Q14 Change % Volume (m/uc) 218 224 (2,3%) Net Revenue (TL mn) 1.203 1.148 4,8% Net Revenue per UC (TL) 5,51 5,13 7,3% Turkey Volume (m/uc) 115 124 (8,0%) Net Revenue (TL mn) 626 614 2,1% Net Revenue per UC (TL) 5,47 4,93 10,9% International Volume (m/uc) 104 9
Slide 15: Commodity Prices & Hedging
Commodity Prices & Hedging Sugar* Aluminium* Resin* (US$/Tonnes, LIFFE #5, Daily) (US$/Tonnes, LME, Daily) (US$/Tonnes, Monthly) 900 2000 2800 800 1800 2600 700 2400 1600 2200 600 1400 2000 500 1200 1800 400 1000 1600 300 1400 800 2015 Hedge 13% 33% Status** 100 Hedge % 67% 87% Non-Hedge * Source: B
Slide 16: Profitability
Profitability* Consolidated 1Q15 1Q14 Change % EBIT 76 69 11,2% EBIT Margin 6,3% 6,0% EBITDA 160 149 7,6% EBITDA Margin 13,3% 13,0% Turkey EBIT 58 48 20,4% EBIT Margin 9,2% 7,8% EBITDA 92 81 14,0% EBITDA Margin 14,7% 13,1% International EBIT 5 8 (29,2%) EBIT Margin 2,3% 3,1% EBITDA 26 29 (10,6%) EBI
Slide 17: Share by business segments
Share by business segments Volume Revenue EBITDA Turkey Turkey 52% 52% Turkey * 59% International International International 41% 48% 48% *Breakdown includes elimination effects 17
Slide 18: Financial Expenses
Financial Expenses (TL million) 1Q15 1Q14 Interest income 11 14 Interest expense (-) (43) (38) Foreign exchange gain, net 102 32 Foreign exchange loss from borrowings, net (256) (54) Financial Income / (Expense) Net (187) (46) 18
Slide 19: Turkey's net FX exposure effecting P&L
Turkey’s net FX exposure effecting P&L YE USD debt in Turkey US$ 875 mn (gross) YE due from related parties US$ 250 mn (shareholder loans to subs) Excess cash in USD US$ 118 mn Net USDTRY exposure US$ 507 mn March-end 2015 19
Slide 20: Financial Expenses and Debt Profile
Financial Expenses and Debt Profile Financial debt (US$ million) Maturity (US$ million) 1.140 1.143 13% 12% 1% 1% USD 622 TL & JD 86% 87% 215 85 80 120 PKR 21 2014 1Q15 2015 2016 2017 2018 2020 2023 Net Debt (US$ 1Q15 2014 Change Net Debt / EBITDA* million) 2.45x Total Financial Debt 1,143 1,140 0%
Slide 21: Free Cash Flow
Free Cash Flow Net Operating Cash Capex (TL mn) Free Cash Flow (TL mn) Inc. Working Capital (TL mn) 50 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 -19 -88 -138 -227 -246 21
Slide 22: Burak Başarır – CEO: Guidance
BURAK BASARIR — CEO Guidance Cala Steech
Slide 23: Guidance and Risks - 2015
Guidance and Risks - 2015 We maintain our guidance… ● Consolidated – High single digit volume growth o Turkey – Low single digit volume growth o International – Low - teens volume growth ● Net revenue growth > volume growth ● EBITDA growth > net revenue growth 23
Slide 24: Cala Steech
Cala Steech
Slide 25: Burak Başarır – CEO: Closing Remarks
BURAK BAŞARIR – CEO Closing Remarks
Slide 26: Thank you!
CMG ila Jecch Thank you!