Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- · BMV:KOF/UBL
Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- — Coca-Cola FEMSA — Investor Presentation (November 2016)
25 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s investor presentation, November 2016
Slide 1: Investor Relations 2016
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Slide 2: Coca-Cola FEMSA: largest franchise bottler in the world by volume
Coca-Cola FEMSA has traveled to become the largest franchise bottler in the world, in terms of volume, operating in two of the most attractive regions for its industry ~ 27 Bn Transactions(1) 10 years CAGR (1) ~ 4 Bn Unit Cases(1) +8% US$ ~10 Bn in Revenues(1) +12% US$ ~2 Bn in EBITDA(1) +11% Indust
Slide 3: Our footprint: Mexico and Central America division
Our footprint… Mexico and Central America division product mix by category % of volume of total beverages LTM 3Q16 NCB's Volume (MMUC) 2,022 Water 6% Transactions (Millions) 11,380 20% Revenues (USD Billions) ~4.4 CSD's 74% EBITDA Margin 22.9% product mix by package % of volume of sparkling beverage
Slide 4: Our footprint: South America division
Our footprint… South America division product mix by category % of volume of total beverages NCB's LTM 3Q16 Water 7% Volume (MMUC) 1,375 10% Transactions (Millions) 8,806 CSD's Revenues (USD Billions) ~4.0 83% EBITDA Margin 16.8% *Including Venezuela product mix by package % of volume of sparkling b
Slide 5: Our footprint: Asia division
Our footprint… Asia division (1) product mix by category % of volume of total beverages LTM 3Q16 NCB's Volume (MMUC) 565 Water 2% 10% Transactions (Millions) 6,444 CSD's Revenues (USD Billions) ~1.1 88% EBITDA Margin ~10% product mix by package % of volume of sparkling beverages. Excluding Fountain
Slide 6: Solid set of comparable results across our markets
Despite a very challenging environment we continue to generate a solid set of comparable results across our markets Average Comparable Price/Case Revenue growth In the last twelve months we have generated close to 20 billion transactions, outperforming volume Transaction growth +5.5% growth in our
Slide 7: Our Strategic Framework continues to be the guide for our business
Our Strategic Framework continues to be the guide for our business Become a multi-category beverage leader with global footprint CATEGORIES: Protect and grow Sparkling, while diversifying aggressively in Stills, Dairy and new categories GEOGRAPHIES: Expand footprint in LatAm & Asia, monitoring other
Slide 8: Strategic Imperatives
Strategic Imperatives Ensure operational stability Accelerate performance to exploit market leadership with distinctive capabilities • Tackle current labor challenges • Focus on Analytics and a streamlined RTM. • Sustain margins despite the economic environment • Compensate incidence increase throug
Slide 9: Portfolio initiatives - Maximizing value in each segment
Portfolio initiatives - Maximizing value in each segment through innovation and affordability CSD’s NCB’s Dairy Water Innovation Juices Innovation Innovation - A portfolio for each segment Low-calorie Sport Drinks - Market leadership in Mexico Affordability Energy Drinks Neo natura
Slide 10: Continued focus on improving execution across our territories
Continued focus on improving execution across our territories In Brazil KOF is the bottler with the largest growth in the national execution index +20pp Our refrigeration platform continues to be a benchmark for the industry Number of new coolers installed across our territories +200,000 +150,000
Slide 11: Transformation of our operating model
Transformation of our operating model… Become a multi-category beverage leader with global footprint CATEGORIES: Protect and grow Sparkling, while diversifying aggressively in Stills, Dairy and new categories GEOGRAPHIES: Expand footprint in LatAm & Asia, monitoring other opportunities within TCCC S
Slide 12: Facing a more complex management model
… driven by our centers of excellence Current transformational Through our centers of efforts: excellence to scale growth: Kofmmercial Digital Commercial Platform Supply Chain Supply Chain Planning Innovation Digital Distribution IT Global Business Services Finance Procurement Facing a more
Slide 13: Commercial Center of Excellence transformational efforts
Commercial Center of Excellence transformational efforts Advanced Analytics Trade Marketing SalesForce for Revenue Transformation Next Generation Automation Segmentation Agile & user friendly tool Sales Quota Progress POS Benchmark Internal & External variables ICE Score Commercial Lev
Slide 14: Driving results through an aggressive deployment
Driving results through an agressive deployment Implementation progress over 5 month Results after implementation in period five territories • Volume growth of +4% • Value growth of • +5% 5 2,607 473 K KDP territories vs not implemented territories Routes Customers • 81% of volume • Rollout • Pilot
Slide 15: Integrated supply chain transformational efforts
Integrated supply chain transformational efforts Centralize the Supply Chain Planning Organization to increase customer service and optimize costs and capital by leveraging KOF’s scale and expertise... Global Vision End-to-End Continuous Order Processing Continuous Operation 63 Plants KOFmercial 327
Slide 16: Distribution & Logistics Center of Excellence – Digitalizing distribution
Distribution & Logistics Center of Excellence – Digitalizing distribution Digital Distribution Live WEB Mobile App Telematics Platform + Systemic Management Distribution Model • Service level improvement • Increased client & KOF connectivity • Time optimization due to remote settlement • Resource op
Slide 17: Capturing a new wave of growth
Capturing a new wave of growth… Become a multi-category beverage leader with global footprint CATEGORIES: Protect and grow Sparkling, while diversifying aggressively in Stills, Dairy and new categories GEOGRAPHIES: Expand footprint in LatAm & Asia, monitoring other opportunities within TCCC System W
Slide 18: After 30+ years as a Coke bottler through steady & bold investments
... after 30+ years as a Coke bottler through steady & bold investments Volume Million UC 4,049 Bn UC 16x Cross the Pacific Go into Triple the size Dairy Go of the Envision abroad Company a 50/50 246 model 1993 1995 2000 2005 2010 2015
Slide 19: Philippines positioned to continue its profitable transformation
After 4 years, the Philippines is better positioned to continue its profitable transformation ahead of being consolidated in 2017… A profound RTM transformation Improving the mix of one-way PET packaging and the core sparkling beverage portfolio Strengthened our supply chain, gained control of
Slide 20: Company consolidates its geographic footprint and evolves
… while our company consolidates its geographic footprint and evolves to meet our consumer’s ever-changing needs… Expanding our footprint in Brazil to serve Diversifying our portfolio, providing our 88 milion consumers and ~50% of the consumers with a wider range of choices Coca-Cola system’s volume
Slide 21: Strengthening our relationship with The Coca-Cola Company
…as we strengthen our relationship with our partner, The Coca-Cola Company… “Our new, broad cooperation framework seeks to maintain a mutually beneficial business relationship over the long-term, allowing both companies to focus on continuing to drive the business forward and generating profitable g
Slide 22: To maintain our leading position
…to maintain our leading position… Becoming a beverage leader with global footprint 10 countries 63 plants 327 Distribution centers 22
Slide 23: Continue generating shareholder value through operating and financial discipline
…and continue generating shareholder value through our operating and financial discipline KOF EBITDA margins Free Cash Flow generation LTM 3Q16 20.5% ~US$620 MM 19.3% 18.8% 18.8% 18.9% 18.3% before dividend payments 2011 2012 2013 2014 2015 LTM 3Q16 Dividends per share Debt Maturity Profile Dividend
Slide 24: Promoting simultaneous generation of social, economic and environmental value
Promoting the simultaneous generation of social, economic and environmental value in all of our actions More than 145 thousand volunteer hours since 2015 More than 798 thousand people benefited with our healthy lifestyle programs since 2015 We return more than 100% of the water used in our productio
Slide 25: Q&A
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