Coca-Cola Icecek A.S. · BIST:CCOLA
Coca-Cola Icecek A.S — Investor Presentation (January 2016)
27 slides from Coca-Cola Icecek A.S's investor presentation, Jan 14, 2016
Slide 1: 2015 Review & 2016 Outlook
2015 Review & 2016 Outlook Analyst Meeting 14th January 2016
Slide 2: Agenda
1 Overview & Strategic Priorities 2 2015 Review & 2016 Outlook 3 Q&A 2
Slide 3: Overview & Strategic Priorities
Overview & Strategic Priorities 3
Slide 4: A regional powerhouse
A regional powerhouse 5th largest bottler 1.2 billion UC sales volume 10 countries 28 billion annual servings to 25 plants 380 million people 10 thousand employees 2 billion of investment 6* billion annual revenue in the past 10 years 1* billion annual EBITDA Annual production capacity of Public 1.4
Slide 5: Operating in the high growth markets
Operating in the high growth markets Coca-Cola HBC Coca-Cola Bottler Merger* Volume: 2.0 bn uc Volume: n.a. Revenue: USD 8.7 bn Revenue: USD 12.4 bn KO Volume Growth Average (2010-2014) Coca-Cola Icecek Volume: 1.1 bn uc 9% Revenue: USD 2.7 bn 5% 4% 0% -1% Coca-Cola Femsa Eurasia & Pasific Latin Nor
Slide 6: Favorable demographics & higher GDP growth prospects
Favorable demographics & higher GDP growth prospects 380 MILLION 70 MILLION CONSUMERS NEW CONSUMERS BY 2025 48 million new urban population More than 56% will be below 30 2016-2025 Population GDP 1.7% 6.7% Average CCI Growth EU Growth 0.1% 3.7% Source: UN Population Division, IMF 6
Slide 7: Sparkling beverage consumption vs GDP
Sparkling beverage consumption vs GDP Per cap 180 consumption (liters) (2014) 150 Mexico USA Argentina Germany 120 Brazil 90 UK Spain South Africa Saudi Arabia Bulgaria Oman 60 Hungary Poland Jordan Iraq Turkey Greece Turkmenistan Russia Kazakhstan Italy 30 Kyrgyzstan Egypt Pakistan Azerbaijan Tajik
Slide 8: Strong brand portfolio
Strong brand portfolio BRAND & FLAVOR EXPANSION PACKAGE INNOVATION 2006 2015 Differentiated package segmentation across channels, customers & Brands 17 30 consumers Flavors 44 148 8
Slide 9: Strong market positions in sparkling
Strong market positions in sparkling Turkey Kazakhstan Pakistan Iraq 66% 49% 36% 29% 9
Slide 10: Our strategic priorities
¢ Winning At The Point of Sales ol : In oa if ot ae q | bee Lo " meni @ * Sales Force Effectiveness - SFE Bn HW z= == 1 * Revenue Growth Management - OBPPC A 10
Slide 11: Accelerate revenue and margin growth
Accelerate revenue and margin growth Revenue Growth Management Cold availability Occasion Brand Package 65% +6 pp vs. Price PY Channel IC mix in Focus on IC portfolio transactions 27% si +155% +6pp in in 2010-2015 2010-2015 11
Slide 12: Accelerate revenue and margin growth
Accelerate revenue and margin growth Leverage technology for better OpEx Management Route to Market Optimization My Cooler CCI Voyage Up to 20% saving (km) Tracing location of 800k coolers Real time volume tracking at 1100 distributors, 740k points of sale 12
Slide 13: Accelerate revenue and margin growth
Accelerate revenue and margin growth Sales Force Effectiveness for better OpEx Management SFE RED 2014 2015 Time in Field 57% 78% 82% 40% Strike Rate 55% 62% Call 9 out of 11 ~40% outlet Completion 75% 85% countries(1) coverage A disciplined total system process to support front-line salesforce effo
Slide 14: Grow sparkling category and per caps
Grow sparkling category and per caps AVAILABILITY AFFORDABILITY ACCEPTABILITY ACTIVATION Brand Love 55% BLS Score ~55% numeric Affordable entry pack 4 out of 10 countries +400 Customer tailored availability within availability in 10 rank the best, 3 rank campains 740k outlets countries the 2nd best
Slide 15: Continue to build and enhance our reputation
Continue to build and enhance our reputation Leader in Transparency Leader in the System 1st & only company in UNGC Index Best in the TCCC EAG twice Euronext Vigeo-Emerging 70 Index 667 projects in all CCI countries BIST Sustainability Index EFQM savings of USD145mn so far CDP Global Water Program 3
Slide 16: World class organization
World class organization Capability Right Development Culture Leadership Right Development Workplace 16
Slide 17: 2015 Review & 2016 Outlook
2 26 Pe &e oo >\0 2016 Ouillook ~ —<tm, — Ds a They } 20. 15a
Slide 18: In a very challenging year…
In a very challenging year… Kazakh Tenge & Geopolitical Azerbaijan Manat concerns remain in Oil prices melts against USD Middle East down by 35% 80 Turkish Lira Consumer 76 76 74 depreciates confidence 73 amidst hits record 66 66 elections lows in period 2009 2010 2011 2012 2013 2014 2015 Turkey 18
Slide 19: …volume growth continued
…volume growth continued Turkey Volume International Volume Consolidated Volume (Unit cases in millions) (Unit cases in millions) (Unit cases in millions) 1131 1152 578 593 553 559 2014 2015 2014 2015 2014 2015 19
Slide 20: Turkey volume shows a gradual recovery in 2015
Turkey volume shows a gradual recovery in 2015 Successful campaigns to support growth Number of transactions up by 6% Sparkling transactions up by 5% on the back of higher IC share IC share in sparkling exceeds 20% Still, including water, up by 10% Mid teens growth in water, mainly driven by package
Slide 21: Pakistan volume continues to grow
Pakistan volume continues to grow 6% volume growth in 2015 cycling 17% a year ago Coke has the highest brand love score in Pakistan +1 mn teen recruitment in 2015 Operational efficiencies of USD 18mn in 2015 Strong #2 in the sparkling category Numeric distribution up from 30% to 46% since 2010 A new
Slide 22: Central Asia volume contracts 4% in 2015
Central Asia volume contracts 4% in 2015 Weak consumer environment due to significant currency devaluation Kazakhstan volume down by 4% Double digit volume contraction in Azerbaijan Price increases and portfolio initiatives Enlarged portfolio for recruitment & home penetration Market share gains in
Slide 23: Middle East volume remains flat in 2015
Middle East volume remains flat in 2015 Total Iraq volume down by 2%, cycling 6% growth South Iraq volume down by 1% due to contraction in water North Iraq contracts 5% due the base impact 12% growth in Jordan, led by strong sparkling Market share gains in Jordan & South Iraq Penetration up to 58% f
Slide 24: 2016 Expectations
2016 Expectations Currency volatility IC transition in TR Low oil prices Competition in PK Pricing/ affordability in CA EM woes Geopolitical conflicts Lower capex & Positive FCF 24
Slide 25: Why CCI?
Why CCI? Market Dynamics Low per capita consumption High GDP growth and increasing disposable income Large population base with good demographics Limited substitutes for alcoholic beverages in Pakistan & Middle East High average temperatures CCI’s Strengths World’s greatest brands Successful track r
Slide 26: Q&A
Q&A 26
Slide 27: Thank you!
Thank you! 2015 Review & 2016 Outlook
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