Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Coca-Cola Hellenic — Non-Deal Roadshow (October 2012)
51 slides from Coca-Cola HBC's roadshow presentation, October 2012
Slide 1: Investor Roadshow Presentation
Investor Roadshow Presentation October-November 2012 1
Slide 2: Disclaimer
Disclaimer Disclaimer This document is an advertisement and not a prospectus and investors should not subscribe for or purchase any transferable securities referred to in this document except on the basis of information contained in a prospectus or offering circular prepared for that purpose and pub
Slide 3: Disclaimer
Disclaimer Any securities that may be offered or sold may not be registered under the Securities Act or the securities laws of any U.S. state and may be placed in reliance on exemptions from the registration requirements of the Securities Act and such state laws. Any securities so placed would be su
Slide 4: Hellenic is one of the largest Coca-Cola bottlers globally
Hellenic is one of the largest Coca- Coca-Cola bottlers globally Volume 2.1bn uc Sales $9.0bn Volume 1.4bn uc Sales $8.3bn Volume 0.8bn uc Sales $1.9bn Coca-Cola Hellenic Coca-Cola Enterprises Volume 0.6bn uc 2011 Sales $5.0bn Coca-Cola Femsa Volume 2.6bn uc Coca-Cola Amatil Sales $9.1bn Coca-Cola I
Slide 5: The Coca-Cola System: Partners in growth
The Coca- Coca-Cola System: Partners in growth Brand ownership Bottling production Concentrate supply Leveraging Sales distribution Brand development the unique Customer management Consumer marketing strength of Channel development Creating demand the System In-outlet execution Demand Fulfillment In
Slide 6: Shareholder structure
Shareholder structure Kar-Tess Holding S.A. 23% Free float 54% The Coca-Cola Company 23% Bottlers’ agreements in place for each of the countries in which we operate until December 2013, with commitment by The Coca-Cola Company to renew these agreements until 2023 6
Slide 7: A diverse and balanced country portfolio
A diverse and balanced country portfolio Population: 78 mio Population: 401 mio Population: 89 mio 2011 2011 Market Split Volume unit cases 34% 19% 47% Total = 2,083 M U.C. Net sales revenue 41% 17% 42% Total = €6,854 M Comparable EBIT 47% 14% 39% Total = €541 M 7
Slide 8: Our extensive territorial reach offers a balanced volume profile
Our extensive territorial reach offers a balanced volume profile 2011 volume by country Other emerging 6% Russia Other developing 16% 7% Other established 8% Italy 15% Serbia 4% Switzerland 4% Hungary 4% Nigeria Ukraine 9% 5% Greece Poland 6% Romania 8% 8% 8
Slide 9: Meeting consumer needs with a diverse product portfolio
Meeting consumer needs with a diverse product portfolio Other Still Still 1% beverages Water 4% Tea 6% Juice 5% 6% Juice 9% Water 2001 20% 2011 1.1 bn u.c 2.1 bn u.c 1.2bn u.c Low-calorie Sparkling sparkling beverages beverages 90% Sparkling 6% beverages 62% 9
Slide 10: Play to Win
Play to Win 10
Slide 11: We have a clear framework to achieve our strategic priorities
We have a clear framework to achieve our strategic priorities 11
Slide 12: The 4C's are key elements in our strategy execution
The 4C’s are key elements in our strategy execution Consumer Customer Cost Leadership Community Trust Relevance Preference • Brand Priorities • Joint Value • Infrastructure • Consumer Based (Purpose driven Creation optimization Marketing Brands) • Customer Care • Cost Ownership • Social Equity • OBP
Slide 13: Consumer relevance
Consumer relevance 13
Slide 14: We have clear category priorities
We have clear category priorities Incremental Volume and Value by total Category: 2011-2020 (Coca-Cola Hellenic territories only) % of incremental volume 40% % of incremental value 30% 20% 10% 0% Sparkling Water Juices RTD-Tea Energy Sports Drinks Source: 2011 Canadean, Company estimates Note: Exclu
Slide 15: Sparkling beverages drive growth and purpose driven brands
…and purpose driven brands Sparkling Beverages Drive Growth Nestea • Selective approach • Leverage Trademark Coca-Cola with • Focus on increasing focus on Regular and Zero market penetration and • Increase per capita consumption trial • Further grow Fanta, focusing on • Bring new people to the orang
Slide 16: Our OBPPC strategy is a key tool of revenue growth management
Our OBPPC strategy is a key tool of revenue growth management The 3 key objectives: Defines the right price point by package and product targeting different consumption More shoppers 1 INCIDENCE occasions to increase category revenue More often 2 FREQUENCY Occasion More volume Brand per purchase 3 U
Slide 17: Customer preference
Customer preference 17
Slide 18: Customer-Centricity
Customer- Customer-Centricity Our Customer-centric vision: “Coca-Cola Hellenic is easy to do business with, gets everything right the first time, adds value on every occasion, and is my # 1 supplier of choice” choice PA&C = Public Affairs & Communications 18 EIT = Enterprise Information Technology
Slide 19: We are driving key initiatives to enhance collaboration and value
We are driving 4 key initiatives to enhance collaboration and value Collaboration Execution An advanced program A 360o process for and process to measuring and collaborate with improving in-market Joint Value customers and create Right Execution execution Creation joint value Daily Enabler An organi
Slide 20: Cost leadership
Cost leadership 20
Slide 21: Optimising our cost base to enhance competitiveness
Optimising our cost base to enhance competitiveness Infrastructure optimisation Warehouse/ Logisitics Manage excellence OPEX and Working Capital 21
Slide 22: SAP is a key enabler for enhancing capabilities and improving efficiencies
SAP is a key enabler for enhancing capabilities and improving efficiencies Manufacturing Logistics Commercial capabilities • Increase in service line • Truck usage optimisation • Customer segmentation efficiencies • Profitability at outlet/customer • Reduced manufacturing • Improved product level ov
Slide 23: Moving transactional processes to shared services
Moving transactional processes to shared services… Benefits: • Leverage SAP benefits • Improve productivity • Enhance business support • Improve internal control / governance • Enable local management to focus on value added activities Roll Out: • Live in 5 countries for key Finance and HR functions
Slide 24: Strong and sustained cash flow generation
Strong and sustained cash flow generation Guidance 1.50 In 2009-2011 we 1.45 generated 1.40 1.36 1.35 €1.5bn free cash flow, exceeding our guidance of €1.2bn 0.78 Capital Expenditure Guidance 2010-2012: €1.40bn 2011-2013: €1.35bn 2005-2007 2008-2010 2009-2011 2010-2012 2011-2013 2012-2014 2012-2014:
Slide 25: Conservative financial profile
Conservative financial profile Credit ratings Net debt/EBITDA • Moody’s: L/T Baa1, S/T P2, negative outlook • S&P: L/T BBB+, S/T A2, credit watch negative Gearing ratio Diversified bond maturity profile 600 500 500 500 400 2012 2013 2014 2015 2016 2016 Eur Revolving Credit Facility (Eur (Eur) Eur) U
Slide 26: Solid track record of returning value to shareholders
Solid track record of returning value to shareholders In million Euros In the last 11 years we have returned to our shareholders total cash of approximately €1.9 billion 26
Slide 27: Community trust
Community trust 27
Slide 28: An industry leader in sustainability
An industry leader in sustainability Member 2010/11 For a fourth consecutive year Coca-Cola Hellenic is listed on the Coca-Cola Hellenic is included in the FTSE4Good index, which recognises Dow Jones Sustainability Indexes (DJSI) the performance of companies – both the Dow Jones Sustainability that
Slide 29: Voluntary Share Exchange Offer Overview
Voluntary Share Exchange Offer Overview 29
Slide 30: Key Transaction Terms
Key Transaction Terms Voluntary share for share exchange offer for Applied for a listing on the premium segment of the 100% of Coca-Cola Hellenic Bottling Company Type of LSE SA (“CCH CCH”) CCH shares (“SEOSEO”) SEO Listings of CCHBC AG ADS program to replace the current Offer • Offeror: Coca-Cola H
Slide 31: Transaction Rationale
Transaction Rationale Listing location better reflects The LSE is a more appropriate trading platform, in light of: CCH’s − CCH’s geographic footprint in 28 countries across 3 continents international − The international profile of CCH’s shareholder structure profile Affirms CCH as an international
Slide 32: Benefits to Shareholders of Listing on the Premium Segment of the LSE
Benefits to Shareholders of Listing on the Premium Segment of the LSE Largest equity market in Europe Total market capitalisation(1): €2,703bn Largest and most liquid equity Most liquid equity market in Europe Average daily trading value: €7,1bn market in Largest investor pool for int’l companies In
Slide 33: In summary
In summary 33
Slide 34: Key strategic priorities in 2012
Key strategic priorities in 2012 Cost Continue to Revenue Leadership / win in the Growth Free Cash marketplace Management Flow Generation 34
Slide 35: Coca-Cola Hellenic remains well positioned for sustainable success
Coca- Coca-Cola Hellenic remains well positioned for sustainable success • Strong track record of winning in the marketplace with sparkling share gains in 25 out of 28 countries in 2011 • Continuing to invest behind our brands • Commercial strategy focused on driving value ahead of volume • Focused
Slide 36: For further information please visit our website
For further information on Coca-Cola Hellenic please visit our website at: www.coca-colahellenic.com or contact our Investor Relations team Investor.relations@cchellenic.com +30.210.6183 100 36
Slide 37: Appendix: Latest Financials
Appendix: Latest Financials 37
Slide 38: Six Months 2012: P&L highlights (reported)
Six Months 2012: P&L highlights (reported) Six Months Six Months 2012 vs EURO (million) 2012 2011 2011 Volume (million u.c.) 1,010.5 1,036.3 -2% Net Sales Revenue 3,432.1 3,395.7 1% Gross Profit 1,237.0 1,299.8 -5% Operating Expenses (1,049.5) (1,051.1) 0% Restructuring Costs (17.6) (16.8) 5% Operat
Slide 39: Six Months 2012: P&L highlights (comparable)
Six Months 2012: P&L highlights (comparable) Six Months Six Months 2012 vs EURO (million) 2012 2011 2011 Volume (million u.c.) 1,010.5 1,036.3 -2% Net Sales Revenue 3,432.1 3,395.7 1% Gross Profit 1,241.2 1,299.8 -5% Operating Expenses (1,049.5) (1,051.1) 0% Operating Profit (EBIT) 191.7 248.7 -23%
Slide 40: Six Months 2012: Gross Profit (reported)
Six Months 2012: Gross Profit (reported) Six Months Six Months 2012 vs EURO (million) 2012 2011 2011 Net Sales Revenue 3,432.1 3,395.7 1% Cost of Sales (2,195.1) (2,095.9) 5% Gross Profit 1,237.0 1,299.8 -5% • Net sales revenue per unit case was up by 12 cent ( 4%) vs 2011 • Cost of sales per unit c
Slide 41: Six Months 2012: Opex per unit case (comparable)
Six Months 2012: Opex per unit case (comparable) Six Six EURO Months Months 2012 vs 2012 2011 2011 Sales 0.39 0.38 4% Marketing 0.12 0.12 -4% Warehouse / Distribution 0.32 0.30 3% Administration 0.21 0.21 2% Total operating 1.04 1.01 2% expenses (*) Financial indicators on a comparable basis exclude
Slide 42: Six Months 2012: Net Profit (reported)
Six Months 2012 : Net Profit (reported) Six Months Six Months 2012 vs EURO (million) 2012 2011 2011 Operating profit (EBIT) 169.9 231.9 -27% Finance costs & other (43.1) (44.0) -2% Profit before tax 126.8 187.9 -33% Tax (34.7) (51.2) -32% Minority interests (0.9) (4.2) -79% Net Profit 91.2 132.5 -31
Slide 43: Six Months 2012: Net Profit (comparable)
Six Months 2012: Net Profit (comparable) Six Six Months Months 2012 vs EURO (million) 2012 2011 2011 Operating profit (EBIT) 191.7 248.7 -23% Finance costs & other (43.1) (44.0) -2% Profit before tax 148.6 204.7 -27% Tax (38.6) (54.5) -29% Minority interests (0.9) (4.2) -79% Net Profit 109.1 146.0 -
Slide 44: Six Months 2012: Free Cash Flow
Six Months 2012: Free Cash Flow 2012 Six Months Six Months vs 2011 EURO (million) 2012 2011 Adjusted EBITDA* 367.6 425.0 (57.4) Change in Working Capital (63.1) (99.9) 36.8 Tax paid (37.1) (38.6) 1.5 Loss / (Gain) on asset disp. 2.0 (2.6) 4.6 Cash Flow from operations 269.4 283.9 (14.5) Net capital
Slide 45: Six Months 2012: Balance sheet
Six Months 2012: Balance sheet EURO (million) 29-Jun-12 31-Dec-11 Total non-current assets 5,269.6 5,185.1 Inventories 619.0 451.5 Trade and other receivables 1,269.6 1,122.4 Cash and equivalents 466.0 476.1 Total current assets 2,354.6 2,050.0 Total assets 7,624.2 7,235.1 Short-term borrowings 264.
Slide 46: Q2 2012: P&L highlights (reported)
Q2 2012: P&L highlights (reported) 2012 vs EURO (million) Q2 2012 Q2 2011 2011 Volume (million u.c.) 585.0 602.5 -3% Net Sales Revenue 1,995.6 1,979.6 1% Gross Profit 740.6 778.2 -5% Operating Expenses (553.7) (557.2) -1% Restructuring Costs (4.2) (6.7) -37% Operating Profit 182.7 214.3 -15% Net pro
Slide 47: Q2 2012: P&L highlights (comparable)
Q2 2012: P&L highlights (comparable) 2012 vs EURO (million) Q2 2012 Q2 2011 2011 Volume (million u.c.) 585.0 602.5 -3% Net Sales Revenue 1,995.6 1,979.6 1% Gross Profit 747.0 778.2 -4% Operating Expenses (553.7) (557.2) -1% Operating Profit (EBIT) 193.3 221.0 -13% Net Profit 127.8 147.0 -13% EBITDA
Slide 48: Q2 2012: Gross Profit (reported)
Q2 2012: Gross Profit (reported) 2012 vs EURO (million) Q2 2012 Q2 2011 2011 Net Sales Revenue 1,995.6 1,979.6 1% Cost of Sales (1,255.0) (1,201.4) 4% Gross Profit 740.6 778.2 -5% • Net sales revenue per unit case was up by 13 cents (4%) vs Q2 2011 • Cost of sales per unit case increased by 15 cents
Slide 49: Q2 2012: Opex per unit case (comparable)
Q2 2012: Opex per unit case (comparable) 2012 vs EURO Q2 2012 Q2 2011 2011 Sales 0.34 0.33 3% Marketing 0.12 0.13 -3% Warehouse / Distribution 0.30 0.29 4% Administration 0.19 0.18 3% Total operating 0.95 0.92 2% expenses (*) Financial indicators on a comparable basis exclude the recognition of rest
Slide 50: Q2 2012: Net Profit (reported)
Q2 2012: Net Profit (reported) 2012 vs EURO (million) Q2 2012 Q2 2011 2011 Operating profit 182.7 214.3 -15% Finance costs & other (21.5) (24.6) -13% Profit before tax 161.2 189.7 -15% Tax (40.8) (45.1) -10% Minority interests (0.8) (3.2) -75% Net profit 119.6 141.4 -15% Earnings per Share (in euros
Slide 51: Q2 2012: Net Profit (comparable)
Q2 2012: Net Profit (comparable) 2012 vs EURO (million) Q2 2012 Q2 2011 2011 Operating profit 193.3 221.0 -13% Finance costs & other (21.5) (24.6) -13% Profit before tax 171.8 196.4 -13% Tax (43.2) (46.2) -6% Minority interests (0.8) (3.2) -75% Net profit 127.8 147.0 -13% Earnings per Share (in euro
Coca-Cola Hellenic — Non-Deal Roadshow (October 2012) on 6ix