Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — DB Consumer Conference 2019
23 slides from Coca-Cola HBC's conference presentation, June 2019
Slide 1: Coca-Cola HBC DB Consumer Conference
Coca-Cola HBC DB Consumer Conference June 2019 Zoran Bogdanovic CEO
Slide 2: Forward looking statements
Forward looking statements Unless otherwise indicated, the condensed consolidated By their nature, forward-looking statements involve risk and interim financial statements and the financial and operating uncertainty because they reflect our current expectations and data or other information included
Slide 3: Our Company
Our Company Established markets 28% Austria, Cyprus, Greece, Italy, Northern Ireland, 2,192m Republic of Ireland, unit cases Switzerland Volume 52% 2018 20% Developing markets Czech Republic, 37% Croatia, Estonia, 43% Hungary, Latvia, Revenue €6,657m Lithuania, Poland, 2018 Slovakia, Slovenia Emergi
Slide 4: A unique business with a strong growth profile
A unique business with Passionate, a strong Broad, differentiated dedicated and engaged growth Industry leader in product offering – 29% of revenues people profile sustainability with deep from non- Sparkling Strategic partner of The roots in our Coca-Cola communities Company Committed to, and Diver
Slide 5: Scorecard: 2020 targets
In 2016 we set ambitious Drive volume Focus on Improve Invest in the targets for Targets growth value efficiency business 2020 4-5% p.a. 26-27% Capital Average currency-neutral expenditure by 2020 revenue growth comparable 5.5%-6.5% Scorecard OpEx as % of of revenue* revenue 11% Working capital less
Slide 6: 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% 3.0% 5.9% 6.0% 8.3% 9.5% 10.2% 28.2% 27.9% 27.7% 2016 2017 2018 2016 2017 2018 2016 2017 2018 CAPEX as a % of revenue W
Slide 7: Leader in the dynamic, growing NARTD industry
No. 1 Leader in the dynamic, growing Non-alcoholic in SSDs in 22 of 23 ready-to-drink (NARTD) industry measured 2018 value share 2018 CCH 2016-2020 2021-2025 markets of category in category value industry CAGR industry total industry share CAGR Sparkling 23 2 5 33% 56% 3.7% 3.9% Hydration* 20 2 4 30
Slide 8: 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 Sparkling Hydration* Juice Energy RTD tea Other NARTD Coffee 56 4 13 2.7% 4.0% 2018 (€bn) 2019-2020 projected 2021-2025 projected increase (€bn) i
Slide 9: Favourable demographics and low per-capita consumption
54% of Favourable demographics - Nigeria’s growing population with very low population is less than per-capita consumption 19 years old Population (m) 2018 industry SSDs servings per-capita +3.0% +4.4% 644 598 616 CCH 103 103 124 124 132 147 180 182 183 222 223 237 262 274 275 288 298 307 330 367 43
Slide 10: Diverse, balanced country portfolio mitigates country-specific risks
Diverse, balanced country portfolio mitigates country-specific risks Nigerian Naira 11.0 Diverse geographical depreciates 80% source of EBIT Russian Rouble depreciates 60% 9.0 3 countries 7.0 with >10% of EBIT contribution 7 countries each with 5-10% of 5.0 EBIT contribution each 3.0 18 countries 1.
Slide 11: The strongest, broadest, most flexible portfolio
The strongest, broadest, most flexible portfolio 8 categories, over 100 brands, c. 4,000 SKUs % in CCH revenue Categories Brands 71% Sparkling 9% Hydration (Water & Sports) 8% Juices 4% Ready-to-drink tea 3% Energy <1% Plant-based beverages 3% Premium spirits 1% Coffee 11
Slide 12: Growth opportunity in commercial beverages
Meals at home Growth Routine Eating out Retail value: €26bn Avg €/ltr: 1.3 opportunity habits at home CCH value share: 5.4% in commercial At school My Moments at home Retail value: €14bn beverages within Avg €/ ltr: 1.3 CCH value share: 4.8% the largest At work and most Hanging out AFH valuable occa
Slide 13: Our growth will be driven by a crystal clear vision
Our growth will be driven by a crystal clear vision 13
Slide 14: Each of our growth pillars is a core strength or competitive advantage
Each of our growth pillars is a core strength or competitive advantage Fuel growth Leverage Win in the through Cultivate the Earn our our unique marketplace competi- potential of licence to 24/7 with our tiveness and our people operate portfolio customers investment Growth Capabilities 14
Slide 15: Leveraging our unique portfolio with clear category strategies
Sparkling Water Leveraging RTD Tea our unique 24/7 portfolio with Juices Adult Sparkling clear category strategies Plant-based Energy Coffee Premium Spirits
Slide 16: Our 24/7 portfolio allows us to stay relevant for every outlet
Our 24/7 portfolio allows us to stay relevant for every outlet in every channel
Slide 17: Winning in the marketplace with customers
Winning in the marketplace with customers Next generation customer JOINT approach VALUE driven CREATION by insights We win with customers when they win with shoppers
Slide 18: Our capabilities are catalysts for growth and drivers of competitive advantage
Our capabilities are catalysts for growth and drivers of competitive advantage Growth-focused To monetise our data through BDAA targeted value creation opportunities Big Data Advanced Analytics Value-led To maximise value from RGM every transaction Revenue Growth Management Trends Tech-enabled For t
Slide 19: Fuelling growth through competitiveness and investments
Fuelling growth through competitiveness and investments Efficiency scorecard 2016-20 2021-25 Production overheads as % of revenue 140 bps improvement 40 bps improvement (beginning – end of period) Cost to supply as % of revenue 60 bps improvement 40 bps improvement (beginning – end of period) Capex
Slide 20: We aim to deliver another step up in performance
5-6% We aim to deliver another Annual organic step up in performance 20-40bps revenue EBIT margin growth expansion p.a. on average Accomplish our 2025 Greater sustainability Fuel growth than high Leverage Win in the commitments through Cultivate the Earn our performing norm our unique marketplace Em
Slide 21: We have the strategy and competitive advantage
We have the strategy and competitive Strongest, Relentless focus on advantage broadest, most cost and efficiency flexible, to fuel investments 24/7 portfolio for growth of brands Leader in the dynamic, growing NARTD industry Diverse, balanced Significant growth country portfolio with opportunities v
Slide 22: To deliver superior shareholder returns
To deliver superior Cash-generative Total shareholder shareholder business that invests 6.5-7.5% of returns above industry returns revenue in capex for profitable average growth Superior organic revenue growth of 5-6% p.a. Strong balance sheet with opportunity to leverage for: Bolt-on acquisitions o
Slide 23: Q&A
Q&A