Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Investor Day (June 2019)
79 slides from Coca-Cola HBC's investor day presentation, Jun 3, 2019
Slide 1: Capital Markets Day 3 June 2019
CAPITAL MARKETS DAY 3 JUNE 2019
Slide 2: Forward looking statements
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 forward-look
Slide 3: Our Company
Our Company 28% 2,192m Volume unit cases y 2018 20% J 37% Revenue €6,657m 2018 20% 35% Comparable EBIT ecara 20% 2018 results
Slide 4: Fuelling growth
Fuelling growth through Winninginthe \ competitiveness marketplace with ‘| and investments Stronger than ever for Accelerating accelerated growth growth customers ‘ and superior ' ae sini shareholder returns Leveraging our unique 24/7 portfolio Delivering strong financial am ? results —>
Slide 5: Accelerating growth
Accelerating growth Zoran Bogdanovic CEO
Slide 6: | years
| 68 years of history Industry leader in sustainability with deep roots in our communities Broad, | differentiated product offering: 29% of revenues from non- Sparkling Diverse geographic footprint: 28 countries across 3 continents Passionate, dedicated and engaged people Committed to, and deliverin
Slide 7: Leader in the dynamic, growing NARTD industry
Leader in the dynamic, growing NARTD industry Favourable demographics: growing population with very low per-capita consumption Diverse, balanced country portfolio mitigates risk Strongest, broadest, most flexible portfolio of brands in the industry Exceptional growth opportunities across high-value
Slide 8: Leader in the dynamic, growing NARTD industry
inssosin Leader in the dynamic, growing NARTD industry 22 of 23 measured 2018 value share 2018 CCH 2016-2020 2021-2025 of category in category value industry CAGR industry total industry share CAGR SSDs 33% 56% 3.7% 3.9% Hydration* 30% 10% 3.8% 3.6% Juice 15% 15% 1.5% 2.5% Energy 412 6% 15% 8.9% 7.8
Slide 9: Future opportunity in Coffee
Future opportunity in Coffee 2018 value share 2018 CCH 2016-2020 2021-2025 of category in category value industry CAGR industry total industry share CAGR SSDs 2 | 33Y 56% 3.79 3.99 Hydration* 2 | 30) 1% 3.8 7 i : uice 1 1 ib 2 i ! - RTD tea 1 2 i | Other 1) 3% 0.2 4.4% If 5 NARTD v/4 00% 26% 3.89 4
Slide 10: Favourable demographics
since Favourable demographics - Nigeria’ growing population with very low population is less than per-capita consumption 19 years old Population (m) 2018 industry SSDs servings per-capita +4.4% +3.0% vey 6a —— = 598 -— 616 9 2025 2015 2019 M Nigeria M CCH excl. Nigeria
Slide 11: Diverse, balanced country portfolio
Diverse, balanced country portfolio mitigates country-specific risks n 5 Nigerian Naira 11,0 Diverse geographical depreciates 80% source of EBIT Russian Rouble SS depreciates 60% HO 3 countries with >10% of ” EBIT contribution 7 countries each with 5-10% of 5,0 EBIT contribution : each 3,0 18 countr
Slide 12: The strongest, broadest, most flexible portfolio
The strongest, broadest, most flexible portfolio 8 categories, over 100 brands, c. 4,000 SKUs Categories Sparkling @ e 6G ant @ Pd KINLEY. atiis a — Hydration (Water & Sports) Ned eae) smartwater [GEMEEa=y €Vva. Dora = vs hice @~m-¢ B = Ready-to-drink tea S Honest — Energy ey © bpm —= Plant-based be
Slide 13: Eating out and occasions
Eating out _ Retail value: €26bn Routine : Avg €/Itr: 1.3 habits ____ laa ie CCH value share: 5.4% at home \ y feel Retail value: €14bn Avg €/ Itr: 1.3 CCH value share: 4.8% At school SS At work ein | e@——_ Hanging out AFH : | Snacktime __ fe CJ «—— Screen \ time , ' 1 Physical (Hh NV, q fi (e} Ae S
Slide 14: Scorecard
Scorecard p.a. Average currency-neutral revenue growth by 2020 comparable EBIT margin Be * Excluding impact of IFRS 16 adoption . by 2020 comparab OpEx as % revenue Wo Capital expenditure le * we of revenue rking capital less than
Slide 15: We are delivering on our 2020 targets
We are delivering on our 2020 targets Currency-neutral Comparable EBIT margin Operating expenses as a revenue growth % of revenue 2020 Target 11% 4-5% on average 2020 Target 26-27% 2016 2017 2018 2016 2017 2018 2016 2017 2018 CAPEX asa % of revenue Working capital (€ mn) 5.5-6.5% 2016 2017 2018
Slide 16: Our growth will be driven by a crystal clear vision
Our growth will be driven by ~~ a crystal clear vision 7
Slide 17: Each of our capabilities is a core strength
: Each of our isacore strength \ f or competitive advantage ‘ Growth Capabilities 39860000
Slide 18: Strong talent identification & accelerated development
Strong talent identification & accelerated development Deep management bench strength Committed to drive leadership development High performance mindset Customer partnership culture Agile organisation and processes Talent development and personal growth TOP 300 leaders internally promoted ‘High pote
Slide 19: Clear roadmap to 2025 commitments
Clear roadmap to 2025 commitments MISSION SUSTAINABILITY 2025 COMMITMENTS 30% Reduction in carbon emissions in direct operations 75% Packaging recovered (from 45% in 2018) 20% Water reduction in plants in water risk areas ‘ * mo AML Coca-Cola Young people trained Hellenic Bottling “busi 6 years in t
Slide 20: We aim to deliver another step up in performance
5-6% We aim to deliver another : Annual organic step up in performance 7° 40bps revenue EBIT margin growth expansion p.a. on average i Greater than high Accomplish our performing norm 2025 Employee sustainability engagement commitments score Growth Capabilities 0e0e
Slide 21: We will cultivate the potential of our people
% We will cultivate the potential of our Next phase ‘N of growth is people and Distinct y driven by a \ maintain our competitive clear vision \ sustainability advantages . N leadership and growth | ~~ 4 N opportunities Growth \ strategy Diversified \ Jeverages. I i i | U y business with Track record
Slide 22: Slide 22
Slide 23: Leveraging our unique 24/7 portfolio
Consumer dynamics are changing
Slide 24: Consumer dynamics are changing
Better for me, better for the planet |A-TI DOZA y DEMUZICA Closer to me Screen it all
Slide 25: Sparkling
Sparkling . Adult Sparkling <P Premium Spirits _—
Slide 26: We have a clear strategy by category
We have a clear ‘ Drive category Expand and premiumise value growth Plant-based Premium Spirits 4 J Unlock total Unlock total portfolio growth in portfolio growth HoReCa in AtWork & HoReCa Establish Innovate and expand right to win
Slide 27: Sparkling is where our right to win is strongest
is where our right to win is the strongest LIGHTS & ZEROES SINGLE-SERVES DRIVING CATEGORY GROWTH DRIVING REVENUE/CASE ACROSS OCCASIONS AND CONSUMERS ™@ =~ New flavours in Zero formula (Lemon, Ginger, Cherry, ...) * Single-serve revenue per case: 1.7x vs. multi-serve = f an * No-sugar variants grew +
Slide 28: Romania: Schweppes fuelled by innovation
Romania: Schweppes fuelled by innovation NEW PACKS NEW FLAVOURS PRICING* B B 2016: parity to Coca-Cola im tz ah ia, S @ | 2018: +30% vs. Coca-Cola ( [ 2019: +40% vs. Coca-Cola 250 ml sleek can 250 ml glass Mandarin Spritz Aperitivo Spritz Jazzy EXECUTION MIXABILITY REVENUE Ae. 2.1x 2015
Slide 29: Adria: Coca-Cola growth fuelled by package premiumisation
Adria*: Coca-Cola growth fuelled by package premiumisation 2016 2018 “Dubrovnik” limited edition “Sarajevo Film Festival” “50 years anniversary” collectible aluminium bottle collectible sleeved glass bottle sleeved glass bottle ; Revenue per case: +120% Revenue per case: +7% Revenue per case: +23% p
Slide 30: Drive value growth in Hydration and Tea via scale and premiumisation
Drive value growth in via scale and premiumisation Strategic Water map for every market Successfully re-entering Tea category Russia as innovation leader STILL SPARKLING | FUNCTIONAL * #1 brand in 11 of our * 36% value share in SUPER- é Peru 29) countries Russia i me = * ~FUZETEA: volume in * Innova
Slide 31: Pushing the boundaries with fast-growing and new categories
Pushing the boundaries by leveraging fast-growing and new categories ENERGY PREMIUM SPIRITS INNOVATE AND EXPAND TO GROW AHEAD OF CATEGORY UNLOCKING HORECA POTENTIAL * 3 years of >20% growth * Already in 19 markets with * Innovations: 25% intention to expand contribution to growth * Driving incidence
Slide 32: #
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Slide 33: Strong presence in HoReCa and New Convenience
Strong presence in HoReCa and New Convenience 2018 NARTD Value Mix* 2018-25 CAGR + 40% ae HoReCa is the r biggest value 9% QSR +5% CCH NARTO —— 1% Kiosks 44% contributor share in ‘Away | 36% HoReC: 3% a joReCa + ore Away from ECHINS IG home and New 4% Home delivery +4% Convenience will drive 0, CCH
Slide 34: HoReCa and New Convenience drive significant value creation
HoReCa and New Convenience drive significant value creation 26% OF NARTD INCREMENTAL VALUE GENERATED* 14% OF NARTD INCREMENTAL VALUE GENERATED‘ Meals athome Drink out Eat out +20%"* New Convenience revenue per litre premium vs. Hypers/Supers A €/ltr (Average 1.8)*** Coca-Cola Hellenic Bottling *chan
Slide 35: Greece: Through 24/7 total beverage partnership
Greece: Through 24/7 total beverage partnership
Slide 36: We have roles for our portfolio and channels
We have roles for our portfolio and channels to The results prove our right to win This is creating real [ j Opportunity { B va) across our 1 24/7 portfolio Consumer , preferences _ 7 are changing ?ww Weare clear about our category strategies |
Slide 37: Winning in the marketplace with customers
Winning in the marketplace with customers Naya Kalogeraki Chief Customer and Commercial Officer 38
Slide 38: Winning in the marketplace with customers
Winning in the marketplace with customers Next generation customer JOINT approach VALUE driven CREATION by insights
Slide 39: Creating joint value requires insights and continuous listening
Creating joint value requires insights and continuous listening Coca-Cola Hellenic Bottling Company anata," Annual Customer Quarterly ecole Pulsing Satisfaction Survey Pulsing cross-functional Surveys Interaction 2014 2019 @ Champions League* Results 9 9 32% 32% @ Non Champions League 68% 68% —————
Slide 40: Proprietary methodology to create joint value
@ We have a proprietary methodology to create (Established market Key Account example) Cross-functional | iterative | Value-focused * Traffic and revenue growth via competitive promo ¢ A differentiated product and package lineup * Improved margin on promoted products
Slide 41: Proprietary methodology to create joint value
@ We have a proprietary methodology to create (Established market Key Account example) Cross-functional | iterative | Value-focused * Grow single-serve and Zeroes * Gain out-of-shelf space * Grow the energy category * Increase FUZETEA assortment
Slide 42: Proprietary methodology to create joint value
@ We have a proprietary methodology to create (Established market Key Account example) Cross-functional | iterative | Value-focused Coca-Cola! I kam ¢ Upsize shoppers with single-serve multi-packs * Energy category growth opportunity
Slide 43: Proprietary methodology to create joint value
@ We have a proprietary methodology to create (Established market Key Account example) Cross-functional | iterative | Value-focused * Competitive promo with customised packs * Improve single-serve mix * Accelerate new, high revenue categories
Slide 44: Proprietary methodology to create joint value
@ We have a proprietary methodology to create 1 KAM . (Established market Key Account example) Cross-functional | iterative | Value-focused iat i om “eas = Be ee * Launch Coke 0.66L in permanent extra displays ee - ¢ Upsize 0.66Lx4 to dedicated 0.66Lx6 multi-pack == = = . ayaa 1 new Energy SKU ] ohi
Slide 45: Proprietary methodology to create joint value
@ We have a proprietary methodology to create (Established market Key Account example) Cross-functional | iterative | Value-focused Coca-Cola! I kam CLEAR DELIVERABLES +7% +8% Revenue Profit +1.2pp Share
Slide 46: Proprietary methodology to create joint value
We have a proprietary methodology to ros: Traffic and revenue growth via competitive promo A differentiated product and package lineup improved margin on promoted products create (Established market Key Account example) | erative ute eaibed * Grow single-serve and Zeroes Gain out-of-shelf space Grow
Slide 47: Stores visited and salesforce servicing customers
Stores visited salesforce across 28 servicing countries our customers every day dh; Dy. », ) Top outlet Tirty cooler wa coverage coolers placed (+120K annual 3Y average) Cross-functional approach & conversations in revenue and profit terms Listening to act *LIENT!"
Slide 48: Moving to Russia: Store of the future
Moving to Russia: Store of the experiential future Activation based ; on customer- execution specific shopper insights Average past 3-year improvement vs. RED* benchmark +9pp Tailored Average past 3-year Cross- execution for increase in displays category relevant drinking per store activation to occ
Slide 49: Winning in the marketplace with customers
Winning in the marketplace with customers ext\generation customer JOINT approach VALUE Industry leading commercial driven CREATION capabilities by insights
Slide 50: Our capabilities are catalysts for growth
Our capabilities are catalysts for growth and drivers of competitive advantage e Growth-focused To monetise our data through BDAA ; targeted value creation opportunities Big Data Advanced Analytics Value-led To maximise value from C # Rom Revenue Growth Management MEIN transaction Q, Tech-enabled Fo
Slide 51: Growth-focused Big Data and Advanced Analytics
Growth-focused Big Data and Advanced Analytics % Coca-Cola HBC BDAA 3 Value creation areas: al Outlet-specific execution priorities * Top-line acceleration =s| Tailored suggested order for each visit * Cost optimisation °° ier) End-to-end (order & execution) responsibility Vv CCH approach: +32% Volu
Slide 52: Value-led Revenue Growth Management
Value-led Revenue Growth Management A Wrcm20 3 Value lenses 10-step framework Key opportunities Consumer (TCCC) * Insights * OBPPC: * Pricing * O- occasions * Accretive mix (category, Shopper ¢ B-brand brand, pack) (TCCC + * New pack & flavour launches * P-pack ech) * P-price * Assortment optimisati
Slide 53: Value-led Revenue Growth Management: Russia example
WW rcm2.0 Coca-Cola Hellenic Bottling Company A Coca-Coa HBC Improving promo ROI % of negative ROI promos -10pp Average volume uplift: +44% *Non Returable Glass Bottle **Figures are estimates of 2019 results vs 2018 Value-led Revenue Growth Management Russia: RGM example New 0.9L pack driving househ
Slide 54: Tech-enabled Route to Market
v4 ° Coca-Cola HBC Wm Coca-Cola Hellenic Bottling Company Tech-enabled Route to Market 3 Value lenses Increased market coverage in OOH* C ‘ Sales Logistics Execution 12-step framework including: coverage expansion, order generation and cost to serve Key opportunities: Coverage & prospecting Executio
Slide 55: Technology enables RTM efficiency and improves customer focus
Technology enables RTM efficiency and improves customer focus Salesforce automation Connected coolers Image recognition * Enabling salesforce efficiency * 320K connected coolers * Successful Italy pilot * Outlet-specific * Targeting 560K by end 2019 * Increasing RED discipline recommendations * Data
Slide 56: Disciplined innovation
> a Disciplined innovation WW innovation Revenue-accretive innovations Accelerated launch of new products drove volume growth of 4.4% in 2018, up from 2.3% in 2017 eeoc NSR/UC: More single-serve NSR/UC: NSR/UC: NSR/UC: NSR/UC: +20% -30% vs. core choices +30% vs. glass 4.7x vs. NARTD 2.6x vs. NARTD +
Slide 57: Assess and accelerate key account capabilities
Coca-Cola Hellenic Bottling Company Assess and accelerate key account capabilities Assess Assessment ¢ Fact-based selling Supported ¢ Negotiation by industry * Insights oriented experts * Strategic planning * Customer P&L * Outlet activation * Builds effective teams Assessment output * Readiness and
Slide 58: Our growth capabilities combine for a clear competitive advantage
Our growth Y capabilities \ combine for a clear competitive advantage 4 The retail | a . landscape is ‘ changing \ dramatically. | We are ready to Improved insights and a unique methodology y capture the i il to ol d We live and + : allow us to plan an breathe Opportunity 7. execute more partnership
Slide 59: Coke Break
Slide 60: Fuelling growth through competitiveness and investments
Fuelling growth through competitiveness and investments Nikos Kalaitzidakis Regional Director 61
Slide 61: Track record of delivering cost reduction
Track record of delivering cost reduction Fewer, larger plants are more efficient 49 48 ie 49 OPEX as % of revenue 30,8% 2008 2015 2016 pe I Plants mm Lines per plant 28,2% 27,9% Distribution centres Warehouses [| a 86 231 2008 2015 2016 2017 151 T 113 95 61 57 56 Py | oe Been CotAsCola 2008 2015 20
Slide 62: We continue to drive supply chain efficiencies
We continue to drive supply chain efficiencies Quality assurance Logistics Manufacturing and sustainability ¢ Warehouse automation * Production lines automatic * Statistical process control (including vehicles) changeover (idle time - * Elimination of plastic film for * Virtual reality product picki
Slide 63: Cold drink equipment infrastructure
Cold drink equipment infrastructure * Accelerated investment * Capacity expansion in targeted programme to drive full markets cooler coverage in top outlets * New technologies to expand Coca-Cola Hellenic Bottling Company Connected coolers 2025 Targets product portfolio * Automated high-bay warehous
Slide 64: new lines
12 new lines installed 42 distribution centres closed (-74%) Production line efficiency increase of | over 15pp { 5 plants closed Productivity (-38%) increase 8pp ; Ja ow UE =), Mega plants improvement 5 Sr} expansion by | in supply chain 60% cost as % of revenue
Slide 65: Our efficiency and investment for growth scorecard
Our efficiency and investment for growth scorecard 2016-20 2021-25 ching aces) AS Taal Capex as % of revenue 7% 6.5% to 7.5% (average p.a.—restated for impact of IFRS 16 adoption) = Production line efficiency 69% 72% (average p.a.) Europe 71% 78% Capacity utilisation p,-<;, 65% 77% (average p.2.) it
Slide 66: Delivering strong financial results
Delivering strong financial results CFO 67
Slide 67: We continue to transform the business
We continue to transform the business to reach our 2025 growth ambition 2008-14 Restructuring 2015-20 Recovery and operating leverage 2021-25 Acceleration of top-line growth
Slide 68: We continue to transform the business to reach our 2025 growth ambition
Coca-Cola Hellenic Bottling Company We continue to transform the business to reach our 2025 growth ambition 2020 growth story 2025 growth story Recovering the lost volume growth of the crisis era Fuelling growth by expanding to new categories Achieving seale and efficiency Accelerating innovation ac
Slide 69: Superior organic top-line growth
Underlying market volume growth rate expected to expand for both Sparkling and NARTD * We expect that we will gain market share * Volume growth expected to be driven by Russia and Nigeria while Europe will continue to grow at a similar pace Currency-neutral revenue will grow faster than volume in ev
Slide 70: 2021-25 margin drivers
We continue to transform the business to reach our 2025 growth ambition Accelerating/ Margin impact Decelerating impact vs. 2021-25 margin drivers on YOY growth 2016-20 growth pace 4 Faster volume expansion Category mix: accelerating Sparkling growth and i : Similar expanding to new categories Pack
Slide 71: Margin expansion continues
Coca-Cola Hellenic Bottling Company 2015 EIT margin Volume leverage Margin expansion continues Revenue leverage Net cost efficiency FX & Input costs 2020 EBIT margin Volume leverage Revenue everage Net cost efficiency FX& costs Not to scale Target +20 bps to +40 bps p.a.on average 2025 EBIT margin
Slide 72: Organic revenue growth and financial targets
Organic* revenue growth p.a. 5% to 6% Comparable EBIT margin (average annual growth) +20 bps to +40 bps Capex as % of revenue** 6.5% to 7.5% Net debt to comparable EBITDA target 1.5x to 2.0x + bneutral b** Restated for impact of IFRS 16 adoption
Slide 73: Total shareholder return CAGR
lA Total shareholder return CAGR 23.2% 12.2% | | 9.8% 9.2% 7 i ; . From 31 Dec 2015 From 31 Dec 2008 y, \ CCH IB STOXX Europe 600 Food and Beverage Index IB FTSE-100 y, Source: Refinitiv Datastream A To 30 April 2019 ympany Excluding ordinary and special dividends proposed for payment in 2019 f
Slide 74: Stronger than ever for accelerated growth and superior shareholder returns
Stronger than ever for accelerated growth and superior shareholder returns Zoran Bogdanovic CEO
Slide 75: The relationship with The Coca-Cola Company is stronger than ever
The relationship a with The ae. A Coca-Cola Company is stronger than ever, with a shared vision Insights _ Brand Manufacturing Brand Ownership Portfolio Strategy Investments in = Portfolio Sales & RTM ma Development REGenCeGraGAn | Customer Marketing, Execution & Management! — consum er | war Capabi
Slide 76: We aim to deliver another step up in performance
5-6% We aim to deliver another : Annual organic step up in performance 7° 40bps revenue EBIT margin growth expansion p.a. on average i Greater than high Accomplish our performing norm 2025 Employee sustainability engagement commitments score Growth Capabilities 0e0e
Slide 77: ee Strongest, a _/ Relentless focus on
ee Strongest, a _/ Relentless focus on ewe aqgvantage ' broadest, most cost and efficiency ‘ flexible, 4 to fuel investments 24/7 portfolio for growth of brands ‘ Leader in the dynamic, growing \ NARTD industry Diverse, X balanced Significant growth q country portfolio with opportunities AY very low
Slide 78: Superior organic revenue growth
| Superior organic . revenue growth of 5to 6% p.a. 1 Consistent margin expansion of 20 to 40 bps p.a. on average Cash-generative business that invests 6.5 to 7.5% of revenue in capex for profitable growth Total shareholder returns above industry average Strong balance sheet with opportunity to lever
Slide 79: Q&A