Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Deutsche Bank Global Consumer Conference 2015
28 slides from Coca-cola Company (the)'s conference presentation, Jun 9, 2015
Slide 1: Ahmet Bozer, Deutsche Bank Global Consumer Conference
Ahmet Bozer Executive Vice President and President, Coca-Cola International Deutsche Bank Global Consumer Conference June 9, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expres
Slide 3: We are the World's Leading Nonalcoholic Beverage Company
We are the World’s Leading Nonalcoholic Beverage Company $46B net revenue 200+ markets 20 billion $ brands 3
Slide 4: Our Opportunity is Immense
Our Opportunity is Immense The average household globally …of these 26 drinks, consumes 26 1.4 are KO brands * drinks per day… *Includes licensed brands 4 4
Slide 5: Our Strategy is Consistent Across All Markets
Our Strategy is Consistent Across All Markets When We Combine the Right Brands, Great Marketing and Superior Execution, We Win in the Marketplace STRONG BRAND PORTFOLIO GREAT SUPERIOR MARKETING EXECUTION 5
Slide 6: 20 Billion-Dollar Brands
We Have the Most Valuable Portfolio of Brands 20 Billion-Dollar Brands 6
Slide 7: We Have a Proven Track Record of Innovation
We Have a Proven Track Record of Innovation Equipment Brands Billion $ Brands 2014 Since 2007 Freestyle Splashbar Marketing and Packaging 2007 7
Slide 8: We Have a Pipeline of Large Brands Across Multiple Categories
We Have a Pipeline of Large Brands Across Multiple Categories RTD Tea Water Sparkling 8 Juice & JD
Slide 9: Our System Has the Strongest Capabilities
Our System Has the Strongest Capabilities Million Cold Drink Assets Thousand Global System Employees Top 10 Private Employer Billion Million Servings Every Day Customer Nearly Outlets Bottling Partners 9
Slide 10: Our Portfolio Holds Leadership Positions Across Key Categories
Our Portfolio Holds Leadership Positions Across Key Categories Value Share Position Juice & JD RTD #1 Coffee #1 Sparkling #1 Sports Energy #2 #2 * Water RTD Tea #2 #3 10 * Estimated global position upon closing of the transactions with Monster Beverage Corporation
Slide 11: Our Portfolio Holds Leadership Positions in Every Geography
Our Portfolio Holds Leadership Positions in Every Geography Value Share Position Europe #1 #1 in Sparkling North America #1 #2 in Still #1 in Sparkling #1 in Still #1 in 25 Asia Pacific #1 #1 in Sparkling of top 32 markets #1 in Still Latin America #1 #1 in Sparkling Eurasia & Africa #1 #1 in Still
Slide 12: During the Past Two Years, Our Topline Growth Decelerated
During the Past Two Years, Our Topline Growth Decelerated Annual net revenue growth* LT Target 4-6% * Comparable currency neutral, excluding the impact of structural changes 12
Slide 13: Industry Slowdown as Challenging Economic Conditions Persist
Due Largely to an Industry Slowdown as Challenging Economic Conditions in Key Markets Persist Global NARTD Value Growth* by Market Type 20% • Industry deceleration driven by emerging 15% markets YOY Increase 10% 5% 0% 2010 2011 2012 2013 2014 DevelopedMarkets Developed Markets Developing DevelopingM
Slide 14: Rather than a Category Specific Issue
Rather than a Category Specific Issue Global NARTD Value Growth* 10% • Industry deceleration not category specific YOY Increase • Sparkling retail value has grown in 5% emerging, developing and developed markets each year since 2010 • Estimated industry value growth of ~5% 0% between 2015 and 2020 2
Slide 15: We Moved Urgently Last Year to Accelerate Growth and Improve Profitability
We Moved Urgently Last Year to Accelerate Growth and Improve Profitability 1 Disciplined brand and growth investments 2 Drive revenue and profit growth with clear portfolio roles across our markets Revenue, Profit 3 Refocus on core business model & Returns 4 Drive efficiency through aggressive produ
Slide 16: Disciplined Brand and Growth Investments
1 Disciplined Brand and Growth Investments • Improve ad quality • Double-digit increase in media in 2014 Improve Quality Increase Media of Marketing • Increase reuse rate Investments • $250-350M planned increase in 2015 • Disciplined allocation RED Accelerate Global System Profitable • Immediate con
Slide 17: When We Improve both Quality and Quantity of Marketing, We See Results
1 When We Improve both Quality and Quantity of Marketing, We See Results Our strategy is to increase Early results showing promise quality & quantity of our marketing (2014 FY Net Revenue*, top 32 markets) High Media Spending Low Good Great * Comparable currency neutral, excluding the impact of stru
Slide 18: The Coca-Cola Bottle Centennial
1 The Coca-Cola Bottle Centennial Localizing a Global Concept for Greater Efficiency and Effectiveness TV COMMERCIALS: 14 INNOVATION ICONIC BILLBOARDS MODULAR CAMPAIGN ACROSS 140 MARKETS WITH 20 ASSETS SHOPPER MUSIC EXPERIENTIAL 18
Slide 19: Driving Transactions, Recruitment and Brand Love
1 Driving Transactions, Recruitment and Brand Love 19 19
Slide 20: Expanding Opportunities and Capabilities Through Investments
1 Expanding Opportunities and Capabilities Through Investments • Access new categories, technologies and assets through acquisitions and investments • Utilize unique assets and relationships of each partner to maximize value 20
Slide 21: We Further Refined Our Market Segmentation Roles
2 We Further Refined Our Market Segmentation Roles Emerging Markets Developing Markets high industry growth, low market share high industry growth, high market share Balanced Volume Volume Led and Price Realization NARTD Volume Growth Developed Markets low industry growth, varied market share Price
Slide 22: We Linked Incentives to Revenue Growth
2 We Linked Incentives to Revenue Growth India Driving trial and recruitment • Expanding distribution and recruiting new consumers • Double-digit unit case volume growth in both sparkling and still portfolios in Q1 Japan Arresting the beverage industry deflationary cycle • Driving responsible pricin
Slide 23: Focusing on Our Core Business While Re-architecting Our System
3 Focusing on Our Core Business While Re-architecting Our System in Key Markets Indonesia Coca-Cola Coca-Cola Beverages North 21st Century Beverage Africa Amatil Indonesia Africa America Partnership Model • Joint venture to capture • Creation of the largest • Roadmap to retain ~1/3 of growth in this
Slide 24: Driving Productivity to Fund Our Investments and Improve Profitability
4 Driving Productivity to Fund Our Investments and Improve Profitability COGS Operating Expenses Marketing TOTAL 2013 2013 Spend Spend Base $18B $18B $12B $5-$6B $36B Base Total Savings Total Savings ~$1.4B ~$1.4B ~$1B ~$600M ~$3B • In-line blow molding • 15% to 20% savings for • Marketing spend non
Slide 25: Streamlining Our Operating Model for Speed and Agility
5 In Addition to Removing Costs, We are Streamlining Our Operating Model for Speed and Agility Streamlining Standardizing group functional layers key processes across our business units Organization wired to Act Rapidly 25
Slide 26: We are Confident in Our Long-Term Growth Algorithm
We are Confident in Our Long-Term Growth Algorithm Long-Term Growth Targets* High Single • PCE growth will continue to fuel industry value Digit growth 6-8% Mid • Grow faster than the industry by leveraging: Single Digit ̶ the world’s most valuable beverage portfolio; ̶ great marketing; and ̶ superi
Slide 27: We Will Transform Our Business Over the Next Few Years
We Will Transform Our Business Over the Next Few Years • Stronger brands and broader portfolio • Concentrate driven organization • Less capital intensive • More profitable with higher returns 27
Slide 28: Q&A
Q&A
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