Coca-cola Icecek A.s. · BIST:CCOLA
Coca-cola Icecek A.s — Investor Presentation (June 2016)
29 slides from Coca-cola Icecek A.s's investor presentation, Jun 9, 2016
Slide 1: CCI Analyst Meeting, 9th June 2016, Istanbul
CCI Analyst Meeting 9th June 2016, Istanbul
Slide 2: Orhun Köstem - CFO
1 YTD Review & 2016 Expectations Orhun Köstem - CFO 2 Turkey Marketing Plans Albi Kohen - Turkey Marketing Director Financial Debt and Impact on P&L 3 Cigdem Gures Erden - Treasury and IR Director
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek’s (“CCI”) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally
Slide 4: YTD Review & 2016 Expectations
YTD Review & 2016 Expectations Orhun Köstem- CFO
Slide 5: Highlights of 1Q16
Highlights of 1Q16 • Transaction growth ahead of unit case growth in Turkey • IC share in sparkling up by 2 pp yoy, exceeding 20% in Turkey • 13% volume growth and higher profitability in Pakistan • Central Asia volume contracts by 11% following sharp devaluations • Low single digit contraction in I
Slide 6: Volume and revenue growth in 1Q16
Volume and revenue growth in 1Q16 Consolidated Revenue (TL mn) Consolidated EBITDA (TLmn) Net Income (TLmn) 29 1Q15 1Q16 -91
Slide 7: 2016 Expectations
2016 Expectations •Transaction growth ahead of uc growth •Higher IC share •Growth in revenue/uc •Margin Expansion •Oil Prices & Devaluation Risk Central Asia 16% Lower •Oil Prices & Devaluation Risk capex Volume Breakdown (2015) Iraq 9% •Comparable base •Strong sparkling growth Positive Turkey FCF 5
Slide 8: Marketing Strategy
Marketing Strategy Albi Kohen – CCI Turkey Marketing Director Classified - Highly Restricted
Slide 9: Beverage Spending has over performance in FMCG
Beverage Spending has over performance in FMCG FMCG Value Growth Value Change Deflated Value Change Volume change %1,3 Price change %8,3 10,5% 10,6% 14,1% 9,5% 3,3% 2,1% 6,1% 1,3% YTD Apr’13 vs 12 YTD Apr’14 vs 13 YTD Apr’15 vs 14 YTD Apr’16 vs 15 Sector Growth % Growth by Main Categories TOTAL FOOD
Slide 10: CCI has solid growth with changing channel dynamics
CCI has solid growth with changing channel dynamics FMCG Channgel Split FMCG Spending Split Sparkling Value Share – Discounter Our Market 38% 45% Share Increase 2014 2016 in Discounters
Slide 11: Sustaining healthy growth is an integrated effort
Sustaining healthy growth is an integrated effort CONSUMER GREAT GREAT GROWTH DEMAND MARKETING EXECUTION Personal Consumption Strategy Cold Drink Equipment + Profit Expenditure ( PCE) Feet on the Street Strong Brands Transaction Category Perceptions Pack-Price architecture Innovati
Slide 12: GREAT Marketing
GREAT MARKETING
Slide 13: Sparkling category has the license to grow
Sparkling category has the license to grow Mexico Argentina Chile Germany Australia South Africa Spain Canada & Brazil France Italy Turkey Pakistan South Korea & Russia China India
Slide 14: Brand values
We have started to reintroduce to the World GROW THE CATEGORY THROUGH KEY INTEGRATION OF PRODUCT BENEFITS PRODUCT BENEFITS & BRAND VALUES PRODUCT TRUTH: BRAND VALUES: Delicious & Unique Taste Simple, Authentic Refreshment Positive BRAND VALUES INTEGRATION Uplift Young But Inclusive OF GAIN SHARE THR
Slide 15: Coke Is The Hero
Aspirational Coke Is The Hero From To Youth Real Stories Globally
Slide 16: New global Shopper Activation
6 New global Shopper Activation 91% Positive conversation in every touchpoint copies Highest ONS scores Anthem: 106 Brotherly Love: 112 Highest ever intrinsic scores Apr'16 vs Jan vs py Great Taste 64% 8 12 Refreshing 60% 6 7
Slide 17: Strong summer plans to cover 40% of summer sales
Strong summer plans to cover 40% of summer sales Coke has The only one Sponsor First Ever Strong New Summer indispensable place in to Euro’16 & National Sponsorship to Communication Ramadan Team Super Lig Teams X2 CONSUMPTION 10WEEKS ON AIR Integration era of during RAMADAN vs With 2 NEW top male ho
Slide 18: Winning with flavored sparkling brands
Wining with flavored sparkling brands thru Building brand love & driving teen recruitment Fanta: Sprite: 2nd Biggest Sparkling Brand Highest growing brand in CSD 1st PULPY OFFER IN CSD NEW POSITIONING Sprite Plain CAGR FROM Segment MS ‘16-’13 25 WEEKS ON AIR: +5 VS PY TO
Slide 19: Consumer driven innovation is the growth engine
Consumer driven innovation is the growth engine NATIONWIDE INNOVATION ALU BOTTLE Coke National PACK COMMUNICATION Team OCCASION BASED ON FANTA SPRITE TANECİX PREMIUMIZATION RB 200 Taste The Feeling Batman vs CAPPY Superman Coke Light ATOM 1st Pulpy Coke Fashion THY w/MILK in CSD Designs @Migros: 250
Slide 20: To win in NARTD, we must accelerate our growth in stills
To win in NARTD , we must accelerate our growth in stills 2015 Value Share Sparkling Fruit Juice Icetea Pet Water
Slide 21: Stills growth strategy prioritized by attractiveness and ability to win
Stills growth strategy prioritized by attractiveness and ability to win Mood ENJOYMENT HYDRATION ENERGY Category Enhanced Pack. & Min. Juices & JDs RTD Tea Hyd. Water Energy 2025 Goal WIN WIN BUILD PARTICIPATE WIN WIN Key Become ‘the Premiumi WITH Positioning coke of every Refreshment zation MONSTER
Slide 22: Win with profitable categories
Win with profitable categories GROW HIGHER THAN PROFITABLE GROWTH CATEGORY (LR X2.1) 1st TIME NATIONAL PROMO Fuse tea NEW PACK / PRICE Cappy INNOVATION Differentiate & Maximize Value STRATEGY INVEST IN BRAND EQUITY +8 WEEKS VS PY GREAT EXECUTION
Slide 23: Incremental Investment to accelerate growth
Incremental Investment to accelerate growth INCREASED BRAND INVESTMENT SEGMENTED EXECUTION Highest Ever Equity Scores! Transition to shopper driven segmentation 1. Cooler Investment vs py Brand I love : +26 SEGMENT ECO MS PR 6.3 teens FSLM: +30 Fav. Brand: +11 GOLD SILVER 3 6 2 5 1 4 BRONZE 9 8 7 St
Slide 24: Hedging and Financial Debt & Impact on P&L
Hedging and Financial Debt & Impact on P&L Cigdem Gures Erden – Treasury and IR Director
Slide 25: Commodity & Raw Material FX Hedging Status 2016
Commodity & Raw Material FX Hedging Status 2016 FX(3) 3% 97% Hedged Non Hedged (1) Hedge percentage: Hedgeable markets only (2) Hedge percentage: Only price fixing through suppliers (3) Turkey Raw Material FX Hedging
Slide 26: Analyst Estimates vs. Actual Figures (1Q16)
Analyst Estimates vs. Actual Figures (1Q16) Consensus Actual Difference Net Revenue 1,295 1301 0 EBITDA 161 155 -4% Net Income 59 29 -51%
Slide 27: Debt profile
Debt profile Financial debt (US$ million) Maturity (US$ million) 658 1.160 1.151 1% USD 500m Eurobond 1% + 6% 3% USD 100m USPP 16% 19% TL & JD & KT PKR EUR 158 77% 77% 105 120 USD 73 36 2015 1Q16 2016 2017 2018 2019 2020 2023
Slide 28: FX gain/loss calculation basics in the P&L related with debt/cash
FX gain/loss calculation basics in the P&L related with debt/cash Interco loans Amounts in original currencies Debt Cash Net short position P&L effect USDTRY 800 201 191 408 +34 mio TRY EURTRY 68 68 -2 mio TRY USDPKR 69 69 0 mio TRY EURPKR 80 80 -10 mio TRY EURUSD 45 45 -4 mio TRY 18 mio TRY • Turke
Slide 29: Q&A
Q&A