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 (March 2007)
22 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s investor presentation, March 2007
Slide 1: Coca-Cola FEMSA
Coca-Cola FEMSA March 2007 KOF
Slide 2: Cautionary Statement
Cautionary Statement FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements relate to Coca-Cola FEMSA, S.A. de C.V. and subsidiaries (“KOF”) and their bus
Slide 3: KOF Overview
KOF Overview
Slide 4: KOF – Evolution 2002 to 2006
KOF – Evolution 2002 to 2006 2002 2006 D 02-06 Volume (MM CU) 620 1,998 + 222% Revenues (MM US$) 1,685 5,346 + 217% Assets (MM US$) 1,546 6,947 + 349% Plants (No.) 9 31 + 22 Distribution Centers (No.) 56 206 + 150 Population (MM) 41 184 + 349% Retailers (Thousands) 568 1,547 + 172% Employees(1) (Tho
Slide 5: KOF – 2006
KOF – 2006 Volume (1,998 MM UC) Revenues (US$ 5,346 MM) EBITDA (US$ 1,131 MM) 8% 6% 5% 11% 13% 14% 4% 8% 9% 11% 53% 54% 7% 65% 9% 10% 6% 7% Mexico Central America Colombia Venezuela Brazil Argentina 2006 - Average Unit Price (USD/UC) 3.27 3.11 2.62 2.70 2.44 1.90 EBITDA Mexico Central America Colomb
Slide 6: Strong EBITDA generation
Strong EBITDA generation A clear sign of our superior track record is our EBITDA growth during the last 10 years….. EBITDA (US$ MM) 1,131 1,029 899 742 537 518 438 330 243 244 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 CAGR 97- 06 18.6% Financial information in nominal terms translated into U
Slide 7: Significant Debt Reduction
Significant Debt Reduction …allowing us to reduce US$ 1.1 billion of net debt since the acquisition of Panamco. Cash Net Debt $2,828 330 $2,545 240 $2,221 307 $1,862 $1,854 $1,835 $1,772 162 301 356 384 2,498 2,305 1,914 1,700 1,534 1,498 1,388 May 03 Dec-03 Dec 04 Dec-05 Jun 06 Sep 06 Dec-06 FX Rat
Slide 8: Recent Events
Recent Events
Slide 9: Recent Events
Recent Events On November third of 2006, FEMSA acquired a package of 148,000,000 series “D” stock of KOF that was owned by TCCC, this stock package represents 8.02% of KOF’s Capital(1) KOF is strategically important for the Coca – Cola System (the second largest bottler) Before After New Vote: P
Slide 10: Providing Attractive Growth Opportunities…
Providing Attractive Growth Opportunities… • The Coca-Cola Company will provide additional marketing support for the carbonated and non-carbonated beverage portfolio • A new business model in the non- carbonated beverages segment • Potential expansion of our footprint within Latin America and in oth
Slide 11: … with Strong Volume Growth in the CSD Beverage Segment…
… with Strong Volume Growth in the CSD Beverage Segment… 1,694 Total Colas Flavors 1,604 84% 1,549 78% 1,493 58% 2003(1) 2004 2005 2006 CSD Sales Volume (MM UC) CAGR 03- 06 4.3% (1) Includes full-year sales volume of our original territories and our new territories acquired from Panamco. 11
Slide 12: … and with ample opportunities in the Non-carb Beverage Segment…
… and with ample opportunities in the Non-carb Beverage Segment… As % of Total Volume 32.8 (Per Country) 3.6 2.2% 2.8 1.0% 22.5 8.8 4.8% Argentina 19.0 1.6 18.2 0.8 2.2 0.3 Brazil 1.6 1.7 2.3 1.2% Venezuela 8.1 8.5 9.4 0.3 5.9 Colombia 4.2% 0.3 2.3 1.9 0.5 Central America 1.8 8.0 9.4 5.6 4.8 0.9% Me
Slide 13: …customizing our product portfolio of non-carbs to each market
…customizing our product portfolio of non-carbs to each market 30 13
Slide 14: Jugos del Valle Transaction
Jugos del Valle Transaction
Slide 15: Transaction Summary
Transaction Summary Coca-Cola FEMSA (“KOF”) and The Coca-Cola Company (“KO”) will offer to acquire up to 100% shares of Jugos del Valle for 100% cash consideration Total transaction value: US$ 470 MM ¾ Equity Value: US$ 380 MM ¾ Net Debt: US$ 90 MM debt The final price to be paid will be based on th
Slide 16: Initial Ownership Structure
Initial Ownership Structure 50% 50% Jugos del Valle Eventually, rest of Coca-Cola system in Mexico and Brazil will be invited to participate under the same basic terms and conditions, in each of joint venture’s territories as shareholders of the JV, reducing KOF’s ownership 16
Slide 17: Transaction Rationale
Transaction Rationale Increases importantly the Coca-Cola system presence in the fast-growing non-carbonated beverage (NCB) segment in Mexico and Brazil; transaction will also allow KOF to consolidate presence as leader in NCB segment across its territories. Initially the acquisition price will be s
Slide 18: Jugos Del Valle - Volume Composition
Jugos Del Valle - Volume Composition LTM(1) Sales volume by category 1,968 118 14% (2) 1% Water 79% Non-carbs 85% 21% CSDs KOF JDV (3) NCBs LTM Sales volume by territory KOF (24.5 MM UC) Jugos del Valle (93.2 MM UC) 10% 16% 32% Mexico Brazil 18% Others 66% 58% (1) Source companies filings. Last twel
Slide 19: Jugos del Valle: an important player in the non-carbonated beverage segment in Latin America
Jugos del Valle: an important player in the non-carbonated beverage segment in Latin America Mexico Revenues LTM 06: US$ 313.7 MM Sales Volume LTM 06: 86.4 MM UC Market Position: #2 in the package juice segment Plants: 7 Main markets: Mexico, Brazil and USA Distribution Centers: 26 Points of sale: 3
Slide 20: Backs
Backs Coca-Cola FEMSA In Mexican constant pesos as of the end of each period 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Operating Income 1,210 1,591 2,051 2,940 3,796 4,440 6,707 7,702 8,683 9,456 Depreciation 266 336 551 823 763 558 966 1,237 1,308 1,504 Amortization & others 483 474 532 449
Slide 21: Backs (cont’d)
Backs (cont’d) Jugos del Valle Jan-Sept LTM In Million Constant Mexican Pesos as of 4Q05 06 Sept06(1) Revenues 1,087.3 3,768.7 4,856 Operating Income - 33.0 53.0 20.0 Depreciation & amort 40.4 108.8 149.3 Adjustments 18.3 49.7 67.9 EBITDA 25.7 211.5 237.2 LTM In US$ million SEPT06(1) Revenues 442.4
Slide 22: KOF
KOF NYSE