Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — dbAccess Global Consumer Conference 2021
24 slides from Coca-cola Hbc's conference presentation, June 2021
Slide 1: dbAccess Global Consumer Conference
dbAccess Global Consumer Conference ZORAN BOGDANOVIC CHIEF EXECUTIVE OFFICER 1 dbACCESS GLOBAL CONSUMER CONFERENCE JUNE 2021
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT Unless otherwise indicated, the condensed consolidated interim financial statements and the financial and operating data or other information included herein relate to Coca-Cola HBC AG and its subsidiaries (“Coca-Cola HBC” or the “Company” or “we” or the “Group”). This docu
Slide 3: Becoming the Leading 24/7 Beverage Partner
BECOMING THE LEADING 24/7 BEVERAGE PARTNER WHERE WE OPERATE OUR 24/7 PORTFOLIO KEY STATS We benefit from a diverse combination of countries across both growth and We offer the strongest, broadest and most flexible portfolio in the beverage industry 28 100+ countries brands established markets Sparkl
Slide 4: A Clear Strategy Frames Our Actions
A CLEAR STRATEGY FRAMES OUR ACTIONS 1 2 3 4 5 GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR LEVERAGE OUR WIN FUEL GROWTH CULTIVATE EARN OUR UNIQUE 24/7 IN THE THROUGH THE POTENTIAL LICENSE PORTFOLIO MARKET PLACE COMPETITIVENESS OF OUR PEOPLE TO OPERATE WITH CUSTOMERS & INVEST
Slide 5: Our Strategic Priorities
OUR STRATEGIC PRIORITIES 1 2 3 GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR LEVERAGE WIN FUEL GROWTH OUR UNIQUE 24/7 IN THE THROUGH PORTFOLIO MARKET PLACE COMPETIVENESS WITH CUSTOMERS AND INVESTMENTS • Prioritise Sparkling & Energy • Ready for out-of-home reopening • Continue to manage costs closely an
Slide 6: Our Strategic Priorities - Pillar 1
OUR STRATEGIC PRIORITIES- PILLAR 1 1 2 3 GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR LEVERAGE WIN FUEL GROWTH OUR UNIQUE 24/7 IN THE THROUGH PORTFOLIO MARKET PLACE COMPETIVENESS WITH CUSTOMERS AND INVESTMENTS • Prioritise Sparkling & Energy • Ready for out-of-home reopening • Continue to manage costs
Slide 7: Prioritise Sparkling and Energy
PRIORITISE SPARKLING AND ENERGY 1 2 3 GROWTH PILLAR Sparkling - Drive category value growth Sparkling growth Lights and Zeroes Growth in lights with volumes up 11% reaching 16% of accelerating growth in since 2016 despite total Sparkling in the overall Sparkling COVID 2020 category Premiumisation Im
Slide 8: Prioritise Sparkling and Energy
PRIORITISE SPARKLING AND ENERGY 1 2 3 GROWTH PILLAR Energy – Innovate and expand In 2020, Energy saw Tiered portfolio Innovations fifth year of catering to premium including new flavours double digit volume and affordable and functional benefits growth consumer demand Portfolio expansion Entering ad
Slide 9: Targeted, More Scalable Innovations
TARGETED, MORE SCALABLE INNOVATIONS 1 2 3 GROWTH PILLAR A disciplined innovation framework • Eliminating underperforming and unprofitable brands and SKUs • Targeting country/category combinations with the greatest topline opportunity • Focusing investments against fewer, scalable and profitable inno
Slide 10: Coffee Is a Significant Opportunity
1 2 3 COFFEE IS A SIGNIFICANT OPPORTUNITY GROWTH PILLAR Roll-out in line with expectations Diverse product offering We will be building Costa coffee on a strong We offer a comprehensive range of products for foundation over several years both the out-of-home and the at-home channels Now in Across 28
Slide 11: Costa Coffee
COSTA COFFEE 1 2 3 GROWTH PILLAR Strong presence in both at-home and out-of-home channels At Home portfolio Away from Home portfolio & Solutions Breakfast & Routine at home Socialising and drinking out At Work & On the go 11 dbACCESS GLOBAL CONSUMER CONFERENCE JUNE 2021
Slide 12: Our Strategic Priorities - Pillar 2
OUR STRATEGIC PRIORITIES – PILLAR 2 1 2 3 GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR LEVERAGE WIN FUEL GROWTH OUR UNIQUE 24/7 IN THE THROUGH PORTFOLIO MARKET PLACE COMPETIVENESS WITH CUSTOMERS AND INVESTMENTS • Prioritise Sparkling & Energy • Ready for out-of-home reopening • Continue to manage costs
Slide 13: Ready for Out-of-Home Reopening; Continue to Gain Share in At-Home
READY FOR OUT-OF-HOME REOPENING; CONTINUE TO 1 2 3 GROWTH PILLAR GAIN SHARE IN AT-HOME CUSTOMERS FLEXIBILITY BDAA TAILORED OFFERS EXECUTION By the side of our Flexible route to Deployment of Big Data allows us to Our sales force are customers throughout market means we can Data and Advanced segment
Slide 14: Leverage RGM for Profitable Growth
1 2 3 LEVERAGE RGM FOR PROFITABLE GROWTH GROWTH PILLAR Insights Price/Pack architecture Segmented approach Consumer Occasion Affordability & Shopper Premiumisation Channel Channel / Market Customer 14 dbACCESS GLOBAL CONSUMER CONFERENCE JUNE 2021
Slide 15: Dedicated Digital Strategy to Unlock Value
1 2 3 DEDICATED DIGITAL STRATEGY TO UNLOCK VALUE GROWTH PILLAR We are focusing on 1 2 four main areas Growing demand from Digitising our physical of opportunity our customers to order business to business route in digital commerce online from us to market through e-marketplaces 3 4 Increasing our av
Slide 16: Seizing the Digital Commerce Opportunity
1 2 3 SEIZING THE DIGITAL COMMERCE OPPORTUNITY GROWTH PILLAR eRetail and Omnichannel Russia Food delivery platforms customers +58% +157% growth Italy 70% Pure Players +80% +114% % share of sales Food delivery c.3% platforms +100% Poland +164% * Data refers to Q1 2021 NSR vs LY 16 dbACCESS GLOBAL CON
Slide 17: Our Strategic Priorities - Pillar 3
OUR STRATEGIC PRIORITIES – PILLAR 3 1 2 3 GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR LEVERAGE WIN FUEL GROWTH OUR UNIQUE 24/7 IN THE THROUGH PORTFOLIO MARKET PLACE COMPETIVENESS WITH CUSTOMERS AND INVESTMENTS • Prioritise Sparkling & Energy • Ready for out-of-home reopening • Continue to manage costs
Slide 18: A Lean, Resilient Operating Model
1 2 3 A LEAN, RESILIENT OPERATING MODEL GROWTH PILLAR We have created a lean 2021 and beyond: adapt with speed and resilient operating model and agility to protect profitability Plants Distribution centres Warehouses • Committed to investing behind our brands • We will keep the disciplined cost cont
Slide 19: Investing in the Business for Growth
1 2 3 INVESTING IN THE BUSINESS FOR GROWTH GROWTH PILLAR The key areas of focus for our investments are: Capacity Cooler expansion in high placement growth markets Building digital Sustainability capabilities commitments Expansion in Coffee 19 dbACCESS GLOBAL CONSUMER CONFERENCE JUNE 2021
Slide 20: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Investing for growth Returning cash to shareholders 1 Organic investment in the business 2 Progressive ordinary dividend policy • CAPEX target ratio: 6.5% - 7.5% of revenue • Target pay-out ratio: 35%-45% of comparable • Capacity expansion, coolers, digital net profits
Slide 21: Earning Our License to Operate - Pillar 5
EARNING OUR LICENSE TO OPERATE – PILLAR 5 Emissions Water reduction World without We are on track to meet our Mission 2025 reduction & stewardship waste sustainability commitments Our Mission 2025 approach to achieving sustainable growth is based on our stakeholder materiality matrix and is fully al
Slide 22: Competitive Advantage
COMPETITIVE ADVANTAGE Growth opportunity 1 Leader in the large, growing non-alcoholic ready to drink 4 Focus on cost and efficiency to fuel investments for industry growth 2 Growth opportunities across high-value occasions 5 Earning our license to operate and categories 3 Diverse, balanced country p
Slide 23: Creating Long Term, Sustainable Value
CREATING LONG TERM, SUSTAINABLE VALUE ONCE RECOVERY IS TARGETS 2021 UNDERWAY 1 FX-neutral revenue growth A strong recovery + 5-6% 2 Comparable EBIT margin A small increase + 20-40bps 3 Employee engagement score Above the high-performing norm 4 Mission 2025 Accomplish our sustainability commitments 2
Slide 24: Q&A
Q&A For further information on Coca-Cola HBC please visit our website at: www.coca-colahellenic.com Or contact our investor relations team: Joanna Kennedy – Investor Relations Director Joanna.Kennedy@cchellenic.com +44 (0)7802 427505 Carla Fabiano – Investor Relations Manager Carla.Fabiano@cchelleni
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