1H13 Results August 22, 2013 Istanbul - Coca Cola İçecek

cci.com.tr

1H13 Results August 22, 2013 Istanbul - Coca Cola İçecek

1H13 Results

August 22, 2013

Istanbul

Damian P. Gammell

Orhun Köstem

CEO

CFO


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. Forwardlooking

statements can generally be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,”

“anticipate,” “plan,” “target,” “believe” or other words of similar meaning. These forward-looking statements reflect the

current views and assumptions of management and are inherently subject to significant business, economic and other risks

and uncertainties. Although management believes the expectations reflected in the forward-looking statements are

reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that

could cause actual results to differ materially from CCI’s expectations include, without limitation: changes in CCI’s

relationship with The Coca-Cola Company and its exercise of its rights under our bottler's agreements; CCI’s ability to

maintain and improve its competitive position in its markets; CCI’s ability to obtain raw materials and packaging materials

at reasonable prices; changes in CCI’s relationship with its significant shareholders; the level of demand for its products in

its markets; fluctuations in the value of the Turkish Lira or the level of inflation in Turkey; other changes in the political or

economic environment in Turkey or CCI’s other markets; adverse weather conditions during the summer months; changes

in the level of tourism in Turkey; CCI’s ability to successfully implement its strategy; and other factors. Should any of these

risks and uncertainties materialize, or should any of management’s underlying assumptions prove to be incorrect, CCI’s

actual results from operations or financial conditions could differ materially from those described herein as anticipated,

believed, estimated or expected. Forward-looking statements speak only as of the date of this press release and CCI has no

obligation to update those statements to reflect changes that may occur after that date.

1


1H13 Review

Double digit volume and revenue

growth

Net revenue per case up 2%

Favorable cost environment

2


Volume up by 18% in 1H13 - Proforma

Turkey Volume International Volume Consolidated Volume

(Unit cases in millions) (Unit cases in millions) (Unit cases in millions)

268 282

235

437

517

169

1H12

1H13

1H12

1H13

1H12

1H13

3


1H13 Sales Volume Breakdown - Proforma

Volume split (uc) - Geography

Volume split (uc) – Consolidated

Tea

8%

Turkey

55%

Int.

45%

Still

20%

Sparkling

72%

4


Product introductions

Promotions

Turkey

Sparkling and still

category continued to

grow in 1H13

Focus on IC packages

Coca-Cola, Coca-Cola Light,

Coca-Cola Zero, Fanta, Sprite,

Can 250 ml

Sprite 1.5lt

Fanta

Tangerine

Apple

200 ml.

Fanta Peach

1.5lt

Sensun Cappy Lemonade Cappy Light

1lt/1.5lt/2.5 lt Pet 330 ml. Lemonade

5


Product introductions

Promotions

International Operations

Kazakhstan

+%33%

Jordan

Coca-Cola Can 355 ml

Central Asia

Bonaqua Pet 500ml,1 L,1.5L

Azerbaijan

+11%

Iraq

+234%

Pakistan

+22%

6


Net sales up by 20.3% in 1H13 - Proforma

Turkey Net Sales International Net Sales Consolidated Net Sales

(TL in millions) (US$ in millions) (TL in millions)

1,294 1.442

582

2.491

2.072

437

1H12

1H13

1H12

1H13

1H12

1H13

7


EBITDA up by 25.9% in 1H13 - Proforma

Turkey EBITDA

Turkey EBITDA International EBITDA Consolidated EBITDA

(TL in millions) *

(US$ in millions) (TL in millions)

17.0% 17.5%

19.3%

16.7%

*

*

16.7%

17.5%

220

252

112

347

437

73

1H12

1H13

1H12

1H13

1H12

1H13

*EBITDA Margin

8


Recent Developments

CCI initiated a Level-1 ADR program

CMB approval for bond issue in international markets

Second investment grade from Moody’s

Fitch reaffirmed our credit rating

9


Financial Review

N. Orhun Köstem

CFO


Introduction to Financial Statements

Basis of Preparation

Consolidated /

Turkey

International*

TL/$

Year-End

TL/$

Average

Functional

Currency

Reporting

Currency

TL

TL

USD

USD

June 30,

2013 1,9248

December

31, 2012 1,7826

June 30,

2013 1,8089

June 30,

2012 1,7935

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).

∆ 8.0% ∆ 0.9%

Inflation

YoY ∆ YTD ∆

December 31, 2012 8.30% 4.00%

Definitions

• Net Sales – Net of discounts and special consumption tax for Turkish

operation

• EBITDA = Profit before financial income/(expense)” plus relevant non-cash expenses including depreciation and amortization,

impairment loss, provision for employee benefits like retirement and vacation pay (provision for management bonus not included),

other non-cash expense, minus relevant non-cash income including negative goodwill, value increase due to change in scope of

consolidation and reversal for the impairment of fixed assets. Please refer to Footnote 4 of the financial report.

11

11


Key Financials – Pro-forma Consolidated

1H12 1H13 Change% 2Q12 2Q13 Change%

Volume 437.5 517.0 18.2% 272.5 319.2 17.1%

Net Sales 2,071.5 2,491.0 20.3% 1,334.9 1,573.7 17.9%

Consolidated

(TL million)

EBITDA 346.8 436.5 25.9% 264.3 306.8 16.1%

EBITDA

Margin

16.7% 17.5% 19.8% 19.5%

Net Income 185.6 391.7 111.1% 136.1 116.9 (14.1%)

Volume 268.3 282.0 5.1% 160.3 165.9 3.5%

Turkey

(TL million)

Net Sales 1,294.1 1,442.0 11.4% 817.5 888.8 8.7%

EBITDA 220.4 251.7 14.2% 158.4 153.3 (3.3%)

EBITDA

Margin

17.0% 17.5% 19.4% 17.2%

Volume 169.3 235.0 38.8% 112.3 153.3 36.6%

International

(US$ million)

Net Sales 437.4 581.7 33.0% 290.9 376.7 29.5%

EBITDA 73.2 112.2 53.3% 61.4 84.2 37.1%

EBITDA

Margin

16.7% 19.3% 21.1% 22.4%

12

12


Financial Expenses - Proforma

1H13

1H12

Interest income

16.1 13.6

Interest expense (-)

(41.1) (32.8)

Foreign exchange gain / (loss)

23.1 (24.2)

Realized FX gain / (loss) - Borrowings (0.1) (0.0)

Unrealized FX gain / (loss) - Borrowings

(100.3) 48.7

Gain / (loss) on derivative transactions

0.0 0.0

Financial Income / (Expense) Net

(102.3) 5.2

13


Debt Structure - Proforma

1H13 FY12 Change%

USD denominated*

EURO denominated*

TL denominated

Other (in USD terms)

Total Financial Debt in TL

956 852

46 51

83 35

35 84

2,107 1,822

12%

-10%

138%

-58%

16%

Total Cash & Equivalent in TL

636 608

5%

Net Debt in TL 1,471 1,215

21%

Net Debt in US$

764 681

12%

Maturity Date

2013 2014 2015 2016

2018

2020

2023

% of total long term debt

1.5% 63.4% 3.9% 0.3%

10.3%

8.3%

12.4%

*In original currency

14


Closing Remarks


Thank you

More magazines by this user
Similar magazines