Central Europe Business
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CentralCentral Europe Europe Business Business May 2019 Asahi Breweries Europe Group – a reminder Poland #1 Kompania Piwowarska Population 38.4 m Czech #1 Market size 36.9 mhl Market share 36% Plzeňský Prazdroj PCC 99 l Population 10.6 m Bialystok Market size 14.9 mhl Poznan Romania #1 Market share 48% PCC 143 l Ursus Breweries Population 19.8 m Market size 18.5 mhl Market share 37% #2 Pilsen Slovakia Nosovice Tychy PCC 94 l Plzeňský Prazdroj Popovice Saris Hungary #1 Slovensko Population 5.4 m Dreher Sörgyárak Zrt. Budapest Market size 4.4 mhl Population 9.8 m Market share 37% Market size 7.0 mhl PCC 76 l Timisoara Market share 33% Brasov PCC 57 l Buzau Europe (Export) Asahi Brands Europe Brewery Asia-Pac (Export) AE Brands Korea Source: Czech: CBMA monthly data, Slovakia: internal estimates, Poland: GUS dom. *excl. NAB, Romania: Deloitte, Hungary: internal estimates. 2 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. We are a diverse international team based in Prague Paolo Lanzarotti Catherine Sinclair Drahomíra Mandíková Charles Jourdain Niël Malan Andrew Bailey CEO HR Director CA Director Supply Chain Director IS Director CFO Countries worked in: Countries worked in: Countries worked in: Countries worked in: Countries worked in: Countries worked in: UK, Italy, France, India, UK, Australia, New Slovakia, India, Czech Brazil, USA, Colombia, South Africa, Colombia, UK, New Zealand, Russia, Slovakia, Czech Republic Zealand, Switzerland, Republic Czech Republic Czech Republic Poland, Czech Republic Czech Republic Companies worked for: Companies worked for: Companies worked for: Companies worked for: Companies worked for: ExxonMobil, SABMiller, Companies worked for: Investment & Cervejarias Kaiser Brasil, Eskom Holdings, Vibrom PwC, Sony, SABMiller, Asahi Thames Water, Cadbury, Development Bank, Molson, SABMiller, Asahi Systems, SABMiller, Asahi SABMiller, Asahi SABMiller, Asahi Asahi Languages spoken: Languages spoken: Languages spoken: English, Italian, French Languages spoken: Languages spoken: English, Spanish, Italian, Languages spoken: English English Slovak, Czech, English, Portuguese, French English, Afrikaans German, Russian Grant McKenzie Igor Tikhonov Grant Liversage Paul Barnett Raymond Stark Dragos Constantinescu Marketing Director MD Poland MD Czech & Slovakia MD Asahi Brands Europe MD Asia Pacific MD Romania & Hungary Countries worked in: Countries worked in: Countries worked in: Countries worked in: Countries worked in: Countries worked in: UK, Hungary, Spain, Russia, Ukraine, Belarus, South Africa, Hong Kong, Czech Republic, Australia, Korea, Hong UK, Belgium, Sweden, Romania, Czech Republic Kazakhstan, Slovakia, Botswana, Swaziland, Switzerland, Singapore, Kong, Vietnam, Ghana, Netherlands, Poland, Romania, Poland Zambia, Ghana, India, Australia Zambia, Botswana, Romania Companies worked for: Mozambique, Czech Swaziland, South Africa Mars, SABMiller, Asahi Companies worked for: Republic Companies worked for: Companies worked for: Mars, SABMiller, Asahi Johnson&Johnson, Companies worked for: British American Languages spoken: Companies worked for: Nestle, Bauer Media KPMG, SABMiller, Asahi Tobacco, Asahi English, Spanish, Czech Languages spoken: KPMG, Barlow Group, Group, SABMiller, Asahi Russian, English, SABMiller, Asahi Languages spoken: Languages spoken: Ukrainian Languages spoken: English Romanian, English, Languages spoken: English, Chinese Dutch, Polish, Spanish English 3 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. We are bringing the new group philosophy to life COMMITTED BOLD COOPERATIVE EMPOWERING CURIOUS 4 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Global trends & foresights confirm our strategic choices Health & wellness Variety is enjoyed Need for simple Sustainability touches everything by more and genuine turned mainstream Personal responsibility for New generations cook and eat In contrast to a complex world, Consumers increasingly preventative medicine: Eat diversely driven by availability consumers want some expect that companies look well, live well. of ingredients, online video simplicity and the comfort of longer term and support lessons and ethnic casual food stability. societal issues. Increasing self-control as growth. social media remembers. Demand for Retro and Local Quality is standard and Need for authentic drinks to products is increasing. consumers increasingly want Physical health based on accompany and partner with to buy from brands that informed and moderate all kinds of food. Socializing beer moment mirror their values. choices. Mental health represents a time off from increasingly valued. decision-making. Macro economic conditions across the region remain positive, but global tensions and regional regulatory dynamics will prove challenging 5 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Performance consistently delivers Value growth From FY2018 Financial Results Presentation (Feb14, 2019) ◆ 2018 Results • Above target Sales driven across all geographies, with strong performance in premium, focused execution and assisted by good weather. • Profit increased above target driven by brand/segment mix improvement, price and cost optimisation programs. ◆ 2019 Forecast • Revenue growth ahead of volume with strong leverage to Core OP in line with our overarching strategic drivers. 6 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Some country level flavour across the portfolio C18 C19 Q1 • NPR/hl growth • Good performance of Książęce & Kozel Poland • Relaunch of Lech and Tyskie • Launch of B-Life and growth of Lech Free 0.0 • Growth in the On-Trade by over 2% in CZ • Growth of NAB portfolio across both markets CZ/SK • Strong growth of Pilsner Urquell in Slovakia • Return to growth of Gambrinus in CZ • Strong revenue growth even with limited grid • Launch of B-Life (fourth market) Romania • Launch of Ursus Retro (premium to premium) • Season preparation while building new capacity • Portfolio premiumization including ASD launch • Kozel repositioning and relaunch Hungary • Exit of Economy & positive NPR/hl in Mainstream • Dreher Craft extended & Dreher Gold relaunched • Strong Germany performance – PU and Tyskie • Prioritization of key growth markets ABE • Growth of Kozel across multiple markets • Targeted ATL support for PU and Kozel Korea & • Good growth in Korea, driven by Kozel • Launch of Kozel Dark NAB in Korea • Distribution gains in Taiwan, Hong Kong, • Continued distribution gains in other markets across APAC Singapore, Thailand, Vietnam Asia Pacific (x10, x6, x3) 7 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Our growth strategy remains unchanged ◆ Our global mission To deliver on our great taste promise and bring more fun to life ◆ 3 key strategic priorities Premiumizing Scaling our Simplifying our scale premiumization to intensify Focus on domestic Focus on international Focus everywhere (90% of NPR) (10% of NPR) 8 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Premiumizing our scale ◆ The rise of brewed adult soft drinks • Opportunity goes well beyond “negative choice” into the CSD category • Our portfolio covers both beer brand extensions and stand-alone brands 5% of total NPR • There is still space to grow – our share lags the category in Poland and Hungary Poland Czech Republic & Slovakia Relaunch of Lech Free 0.0% Relaunch of Birell flavoured Launch of B-Life Botanicals Birell Botanicals new variant YoY category growth: 83% YoY category growth: 26% (CZ), 18% (SK) YoY NPR growth: 73% YoY NPR growth: 25% (CZ), 11% (SK) Share of category: 22% Share of category: 65% (CZ), 27% (SK) Hungary Romania Relaunch of Dreher 24 Launch of B-Life Botanicals Ursus Cooler new variant YoY category growth: 20% YoY category growth: 27% YoY NPR growth: 29% YoY NPR growth: 49% Share of category: 8% Share of category: 39% 9 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Premiumizing our scale ◆ Uptrading and innovation around core portfolio • Seeking to deliver beer culture and craft experience for all 70% of total NPR • Revenue management central to our success • End to End process – from strategy to execution 3% NPR/hl growth Upgrades of scale brands Core lager innovations 150th anniversary of Gambrinus Building of unpasteurized segment with Ursus On-Trade launch of Gambrinus 11 Retro Relaunch of Tyskie Launch of Kozel Mistrův ležák Upgrade of Lech Relaunch of Dreher Gold 10 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Premiumizing our scale ◆ Bringing variety with complex new styles outside of lager • Seeking to deliver craft experience for all 1% of total NPR • Experimenting with new styles in premium and super-premium price range 69% YoY NPR growth Crafted innovations outside lager Volba sládků programme introducing new beer style every month Introduction of IPA, Porter, Weizen into Książęce entry-craft range Relaunch of Dreher craft range incl. new Dreher Pale Ale & Dreher Red Ale Launch of Šariš Ejl 11 Copyright © ASAHI GROUP HOLDINGS. All rights reserved. Premiumizing our scale ◆ Building our world lager subcategory in Central Europe • International lagers are growing all around Central Europe, growth outperforming the overall beer market in our domestic markets Asahi Super Dry in Hungary Peroni in Romania 2018 was the first year in the market 18% YoY NPR growth in 2018 Testing full mix model, which includes On-Trade and Off- Strong marketing support, including Casa di Peroni and Trade distribution, key opinion leader activation, digital Riviera Peroni activations in the season communication, ATL