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 (August 2005)
19 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s investor presentation, August 2005
Slide 1: Coca-Cola FEMSA
Coca-Cola FEMSA August 2005
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: Contents
Contents Coca-Cola FEMSA Achievements in the Panamco Acquisition Growth through Product and Packaging Innovation Opportunities for Growth 3
Slide 4: Coca-Cola Femsa – The Latin America Leader
Coca-Cola Femsa – The Latin America Leader The Company is the preeminent bottler of Coca-Cola products in Latin America and the second largest in the world Mexico City Central & Guatemala, Nicaragua, Southeast Mexico Costa Rica & Panama Venezuela Largest soft-drink operation in Mexico and Latin
Slide 5: Ownership Structure
Ownership Structure Public Voting: 46.4% Economic: 39.6% Voting: 53.6% Voting: 0.0% Economic: 45.7% Economic: 14.7% US$MM Market Capitalization (1) 5,157 Net Debt (June 2005) 1,903 Enterprise Value 7,060 (1) Considers a stock price (ADR) of US$ 27.93 as of August 8, 2005
Slide 6: Sustainable Free Cash Flow Generation
Sustainable Free Cash Flow Generation The strong cash flow generation supports our deleveraging story Free Cash Flow (MM USD) (1) 118(2) 293 307 223 207 323 127 46 32 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 -67 -70 Note: All figures are in nominal Mexican pesos as of the reported year an
Slide 7: Net Debt Evolution
Net Debt Evolution After two years of acquiring Panamco we have managed to reduce net debt by US$595 mm $2,828 Cash KOF Net Debt 3,000 $2,574 330 $2,319 $2,242 $2,218 $2,413 2,500 248 208 510 323 290 2,000 1,500 2,498 2,326 1,000 2,111 (2) 1,919 1,928 1,903 500 0 Exchange May-03 Dec-03 Jun-04 Dec-
Slide 8: Contents
Contents Coca-Cola FEMSA Achievements in the Panamco Acquisition Growth through Product and Packaging Innovation Opportunities for Growth
Slide 9: Integration of the operations
Integration of the operations Succesful integration generating value through our sales growth with a lower asset base Clear improvement in operating productivity and efficiency metrics Relevant Information (Last twelve months) 2Q03 2Q05 % Change Soft Drinks (MM CU) 1,491 1,587 6.4% Plants 52 30
Slide 10: KOF’s Growth Story – 2Q 2005
KOF’s Growth Story – 2Q 2005 Volume (486.9 MM UC) Revenues (US$ 1,181 MM) (1) Argentina 6.6% Argentina 4.7% Brazil 12.0% Brazil 10.6% Venezuela 9.6% Venezuela 9.3% Mexico Mexico 55.7% Colombia 8.8% 59.7% Colombia 9.1% 6.6% Central America 5.8% Central America Highlights EBITDA (US$ 266 MM) (1) Con
Slide 11: KOF’s Geographic Diversification – 1st Half 2005
KOF’s Geographic Diversification – 1st Half 2005 Volume (924.6 MM CU) Revenues (US$ 2,223 MM) (1) Argentina 7.7% Argentina 5.6% Brazil Brazil 11.5% 13.0% Venezuela 9.7% Venezuela 9.3% Mexico Mexico 54.8% 57.2% Colombia 9.1% Colombia 9.4% 7.0% Central America 5.9% Central America Highlights EBITDA (U
Slide 12: Contents
Contents Coca-Cola FEMSA Achievements in the Panamco Acquisition Growth through Product and Packaging Innovation Opportunities for Growth 12
Slide 13: Strengthening Continuously brand Coca-Cola
Strengthening Continuously brand Coca-Cola Special focus on the execution of brand Coca-Cola Larger number of multi-serve presentations alternatives in Central America with the objective of increasing the per capitas Launch of the 2.5 Lt returnable PET presentation in Costa Rica and Guatemala
Slide 14: In México the “Choice Portfolio”
In México the “Choice Portfolio” Offering more than ten different packaging presentations for brand Coca-Cola in Mexico with different price points, from Ps. 3 up to Ps. 16 CC 2.5 lts N-Ret $16.00 CC 2.0 lts. N-Ret CC 2.5 lts. Ret $13.00 $13.00 PC 2.5 lts N Ret $13.00 BC 3.3 lts. PC 2.0 lts. $12.0
Slide 15: Intense Product Innovation
Intense Product Innovation Opportunities to develop a segmented product porfolio as in Argentina Launched new line extensions for CSD flavors (Lift Golden, Senzao Guaranaranja, Mundet Multi-flavors), representing two thirds of incremental volumes during 2004 in Mexico Reinforcing our presence
Slide 16: Contents
Contents Coca-Cola FEMSA Achievements in the Panamco Acquisition Growth through Product and Packaging Innovation Opportunities for Growth 16
Slide 17: Opportunities for Growth
Opportunities for Growth Low per capita consumption Population Growth Single serve presentations and CSD flavor brands Non-carbonated beverage segment and Light products Leverage on the brand equity of Coca-Cola Population Growth CSD per Capita Consumption CAGR 2000-2004 (%) in KOF Territo
Slide 18: Market Multisegmentation Model
Market Multisegmentation Model In Argentina we developed an execution model segmented through a differentiated portfolio, adapting to the competitive and economic environment of the country The revenue management strategies implemented in Argentina have provided us with a base of knowledge that
Slide 19: Reconciliation Tables
Reconciliation Tables Page 6 - FCF Mexican Pesos (historical pesos) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Operating Income 401 641 1,209 1,594 2,056 2,940 3,796 4,440 6,710 7,696 Depreciation, Amortization & Non- Cash Charges 456 581 752 819 1,080 1,271 1,138 975 1,629 2,324 EBITDA 857 1
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