Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Q2 2013 Earnings Presentation
27 slides from Coca-Cola HBC's earnings presentation, August 2013
Slide 1: Second quarter and half year results as of 28 June 2013
Second quarter and half year results as of 28 June 2013 Dimitris Lois - CEO Michalis Imellos - CFO
Slide 2: Disclaimer
Disclaimer 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 document contains f
Slide 3: Key messages for the second quarter of the year
Key messages for the second quarter of the year Continue winning in the marketplace Currency neutral revenue per case increased for the eighth consecutive quarter Volume growth challenge driven by tough macroeconomic and trading conditions Strong free cash flow generation 3
Slide 4: Financial Review
Financial Review Michalis Imellos Chief Financial Officer
Slide 5: Financial performance overview
Financial performance overview Q2’13 Q2’12 Ch. H1’13 H1’12 Ch. Volume (m u.c.) 578 587 -2% 1,004 1,014 -1% Net Sales Revenue (€m) 1,949 1,986 -2% 3,381 3,419 -1% Comp. EBIT (€ m) 179 188 -5% 178 187 -5% Comp. Net Profit (€m) 127 126 flat 111 107 +3% Comparable EPS (€) 0.34 0.35 -3% 0.31 0.29 +7% Fre
Slide 6: Eighth consecutive quarter of growth in currency neutral net sales revenue per case
Eighth consecutive quarter of growth in currency neutral net sales revenue per case Q2’13 H1’13 Total Coca-Cola HBC Volume -2% -1% Currency neutral revenue per case +1% +1% Established Markets Volume -6% -6% Currency neutral revenue per case Flat Flat Developing Markets Volume -3% -3% Currency neutr
Slide 7: Input costs still growing versus Q2 2012 albeit at a slower pace
Input costs still growing versus Q2 2012 albeit at a slower pace Q2 2013 • Currency neutral input cost per case increased by low single digit • EU sugar costs increased year-over-year • World sugar costs remained on a downward trend • Lower aluminium costs in the quarter • PET resin costs broadly fl
Slide 8: We continue to focus on increasing operational efficiency
We continue to focus on increasing operational efficiency Q2’13 Q2’ 12 Ch. Net Sales Revenue (€ m) 1,949 1,986 -2% Comp. Operating Expenses (€ m) (536) (551) -3% OPEX as % of NSR 27.5% 27.8% -24bps H1’13 H1’ 12 Ch. Net Sales Revenue (€ m) 3,381 3,419 -1% Comp. Operating Expenses (€ m) (1,020) (1,045
Slide 9: Developing markets grew comparable operating profit
Developing markets grew comparable operating profit Absolute change in Comparable EBIT Comparable EBIT in million Euros in million Euros Q2’13 Q2’12 Total CCH -9 179 188 Established -7 51 58 Developing 3 19 16 Emerging -5 110 115 (*) Financial indicators on a comparable basis exclude the recognition
Slide 10: Restructuring update
Restructuring update FY 2013 targets • Benefits from 2013 restructuring initiatives expected at €30m on an annualised basis • Total benefits in 2013 (from 2012 and 2013 initiatives) expected at €65m • Expecting pre-tax restructuring charges of €50m in 2013 • Restructuring focus continues to be in es
Slide 11: Strong Free Cash Flow driven by improvement in Working Capital
Strong Free Cash Flow driven by improvement in Working Capital Q2’13 Q2’12 Abs H1’13 H1’12 Abs in million Euros Ch. Ch. Operating Profit 145 177 -31 134 164 -30 (EBIT) Change in Working 1 (46) +47 (56) (69) +13 Capital Net capital (100) (101) +1 (152) (171) +19 expenditure Free Cash Flow (FCF) 137 1
Slide 12: Very Successful Refinancing
Very Successful Refinancing June 2012: •Second Greek Elections •Scenarios on Grexit become stronger •CCH Spreads are at peak levels •Moody’s & S&P downgrade CCH due to Country Risk 5.000% •CCH access to Debt Capital Market becomes very expensive Spread of our 2016 Bond (%) October 2012: 10th June 20
Slide 13: Diversified financial profile
Diversified financial profile Debt maturity profile Available Facilities in million €800 • ACTIVE: €500m Revolving Credit Facility until 2016 €600 $ 500 €500 • CANCELLED: €550m Squeeze-out $ 400 Bridge Facility €317 • CANCELLED: €500m Bond Bridge Facility 2013 2014 2015 2016 2020 Sep Jan Sep Nov Jun
Slide 14: 2013 Financial outlook
2013 Financial outlook • Currency neutral net sales revenue per case: Expecting growth year-over- year, albeit at a slower pace than 2012 • Currency neutral input costs per case: Expecting low single-digit increase • FX: Headwind based on current spot rates increased versus Q1 expectations and is no
Slide 15: Operational Review & Strategy
Operational Review & Strategy Dimitris Lois Chief Executive Officer
Slide 16: Volume contribution by operating segment
Volume contribution by operating segment 587m +2% 578m u.c. u.c. -3% -6% Established Developing Emerging Q2 12 Q2 13 16
Slide 17: We continued to win in the marketplace
We continued to win in the marketplace 17
Slide 18: Sparkling category grew in Q2
Sparkling category grew in Q2 Premium Sparkling grew by 1% Trademark Coca-Cola products grew by 2% Coca-Cola Zero grew by 18% Energy grew by 4% Tea declined by 1% Water declined by 8% Juice declined by 4% Multon grew volume by 10% 18
Slide 19: Established markets - persistently challenging environment
Established markets - persistently challenging environment Volume -6% Trademark Coca-Cola RTD-Tea Coca-Cola Zero Currency neutral net -8% -2% +10% sales revenue per case flat • Italy: Volume declined by mid single-digits in the quarter, with Coca-Cola Zero up by 14%. Ongoing economic challenges cont
Slide 20: Developing markets – volatility continues
Developing markets – volatility continues Volume -3% Trademark Coca-Cola Juice Coca-Cola Zero Currency neutral net -5% +3% +21% sales revenue per case flat • Poland: Volume declined by low single-digits, driven by a high teens decline in tea which more than offset a low single digit increase in spar
Slide 21: Emerging markets - continued growth driver
Emerging markets - continued growth driver Volume +2% Trademark Fanta RTD-Tea Coca-Cola Currency neutral net +2% +11% +6% sales revenue per case +3% • Russia: Volume increased by mid single-digits. Growth in the quarter was broad-based with all categories showing volume increase, except water • Nige
Slide 22: "Share a Coke"
) | "Share a Coke" is happy to share a Coke with Coca-Cola HBC ,oca-Cola HBC AG
Slide 23: Our Strategy Winning in the marketplace
Our Strategy Winning in the marketplace Revenue ahead of volume Focus on Cost leadership Generate solid Free Cash Flow 23
Slide 24: Use of Cash
Use of Cash Re-invest in the business to drive CAPEX profitable volume and revenue growth Opportunities with compelling strategic M&A rationale for our business portfolio Return cash to our shareholders Dividends through dividends 24
Slide 25: London Stock Exchange welcomes Coca-Cola HBC AG to the Main Market
Ras stock E 744 London London Stock Exchange welcomes Coca-Cola HBC AG to the Main Market 29 April 2013 xchange
Slide 26: Long-term growth drivers
Long-term growth drivers Most known brands Low per capita in the world! consumption with great potential to grow Diverse geographic footprint with strong emerging market exposure Strong focus on cost leadership and Solid track record history of solid cash of winning in the generation marketplace 26
Slide 27: For further information on Coca-Cola HBC please visit our website
For further information on Coca-Cola HBC please visit our website at: www.coca-colahellenic.com or contact our Investor Relations team Investor.relations@cchellenic.com +30.210.6183 100 27