Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — FY2020 Earnings Presentation
25 slides from Coca-cola Hbc's earnings presentation, Feb 11, 2021
Slide 1: Results Presentation – Full Year Results
RESULTS PRESENTATION FULL YEAR RESULTS 11 FEBRUARY 2021 1 FULL YEAR RESULTS 11 FEBRUARY 2021
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT Unless otherwise indicated, the condensed consolidated interim financial statements and the financial and operating data or other information included herein relate to Coca-Cola HBC AG and its subsidiaries (“Coca-Cola HBC” or the “Company” or “we” or the “Group”). This docu
Slide 3: Operational Review & Strategy
OPERATIONAL REVIEW & STRATEGY ZORAN BOGDANOVIC CHIEF EXECUTIVE OFFICER 3 FULL YEAR RESULTS 11 FEBRUARY 2021
Slide 4: Operational Agility – Resilient Performance
OPERATIONAL AGILITY – RESILIENT PERFORMANCE PEOPLE SAFE; CUSTOMERS SERVED WINNING IN THE MARKET • Safety of people ensured • Strong value share gains • Fully operational supply chain • +40bps in NARTD • Dynamic route-to-market • +30bps in Sparkling • Enhanced digital capabilities OPERATIONAL AGILITY
Slide 5: Adapting Fast to Continue Winning in the Crisis
ADAPTING FAST TO CONTINUE WINNING IN THE CRISIS OUR GROWTH PILLARS 2020 ACTIONS 1 LEVERAGE OUR UNIQUE 24/7 PORTFOLIO • Disciplined portfolio prioritisation • Fewer, larger more scalable innovations 2 WIN IN THE • Remaining close to all our customers, open or closed MARKET PLACE • Dynamic Route to Ma
Slide 6: At-Home Growing, Out-of-Home Resilient
AT-HOME GROWING OUT-OF-HOME RESILIENT AT-HOME CHANNEL VOLUME YoY* Open like ever before image Low- from Laura on Friday morning teens LSD MSD MSD decline decline growth growth APRIL MAY & JUNE Q3 Q4 Q319 +LSD Q419 +HSD OUT-OF-HOME CHANNEL VOLUME YoY* HSD Mid- 70-90% 25-50% teens decline decline decl
Slide 7: Strong H2 Recovery in 75% of Our Portfolio
STRONG H2 RECOVERY IN 75% OF OUR PORTFOLIO FY 2020 Volume movements YoY • Sparkling and Energy (75% of total volume) showed strong recovery in H2, up +4.7% and +27.6% respectively -4.6% +0.2% +0.7% − Consumers choosing tried and tested brands leading to outperformance from Trademark Coke FY 2020 TOT
Slide 8: Single-Serve Mix Stabilised
SINGLE-SERVE MIX STABILISED 2015-2019: Single-serve mix grew by over 1pp per year FY 2020: Single-serve mix stabilised in H2 SINGLE-SERVE MIX* Low- MSD to teens HSD -1.3pp -2.9pp decline decline APRIL MAY & JUNE Q3 Q4 Movement YoY in SS volume as % of Total Volume Increasing single-serve in at-home
Slide 9: Segmental Overview
SEGMENTAL OVERVIEW Segmental performance influenced by two factors: Segmental volume YoY* • Severity and length of the lockdowns in each market • Exposure of each country to the out-of-home channel and tourism -14.0% -4.4% Leading to prioritised investments: ESTABLISHED DEVELOPING • Rigorous and rap
Slide 10: Established Markets
ESTABLISHED MARKETS GAINING SHARE IN ALL MARKETS EXCEPT SWITZERLAND. ACHIEVED STABLE PRICE/MIX THROUGH PRICING AND CATEGORY MIX DESPITE HIGH-EXPOSURE TO OUT-OF-HOME. -14.0% -0.1% -14.1% ESTABLISHED MARKETS • Majority locked down early and VOLUME PRICE / MIX FX-NEUTRAL severely during both waves of R
Slide 11: Developing Markets
DEVELOPING MARKETS VOLUME RESILIENCE ACHIEVED THROUGH STRONG SHARE GAINS IN LARGEST MARKETS -4.4% -6.2% -10.3% DEVELOPING MARKETS • Lower exposure to out-of-home VOLUME PRICE / MIX FX-NEUTRAL REVENUE • Strong share gains in largest markets with Poland growing volumes • Price/mix also impacted by +0.
Slide 12: Emerging Markets
EMERGING MARKETS GAINING SHARE IN ALL LARGE MARKETS DRIVES PERFORMANCE +0.3% -3.1% -2.8% EMERGING MARKETS • Growth in Russia, Nigeria and VOLUME PRICE / MIX FX-NEUTRAL Ukraine REVENUE • Russia and Ukraine have low exposure to out-of-home • Price/mix impacted by COVID, +5.5% +5.6% +3.1% +4.7% Nigeria
Slide 13: Prioritised Innovation – With Scale and Speed
PRIORITISED INNOVATION – WITH SCALE AND SPEED COSTA coffee: 14 markets Topo Chico: 5 markets Countries in CCH territories Countries that we have launched Costa Coffee Countries that we have launched Topo Chicco Countries that we have launched both Costa Coffee and Topo Chico 13 FULL YEAR RESULTS 11
Slide 14: Additional In-House Recycled PET Capacity
ADDITIONAL IN-HOUSE RECYCLED PET CAPACITY • Investing in in-house capacity to produce recycled PET bottle preforms from a cheaper, more plentiful feedstock: hot-washed PET flakes • Addresses one of the major challenges in reaching our recycled PET use targets which is the lack of availability and hi
Slide 15: Financial Review
FINANCIAL REVIEW MICHALIS IMELLOS CHIEF FINANCIAL OFFICER 15 FULL YEAR RESULTS 11 FEBRUARY 2021
Slide 16: Financial Performance – Revenues
FINANCIAL PERFORMANCE – REVENUES like-for-like FY 2020 FY 2019 change change • Like-for-like volume declined 4.6% with better trends in H2 Volume (m u.c.) 2,135.6 2,264.5 -5.7% -4.6% FX-neutral revenue per case (€) 2.87 2.99 -4.1% -4.1% • Like-for-like price/mix declined 4.1%, FX-neutral net sales r
Slide 17: Years of Efficiency Improvements Bring Lasting Margin Resilience
YEARS OF EFFICIENCY IMPROVEMENTS BRING LASTING MARGIN RESILIENCE REPORTED REVENUE GROWTH (%) • Restructuring work done over the last decade has 15.1 created a more resilient, flexible and variable business 8.0 − Optimised, automated, efficient production 3.3 3.2 4.9 5.5 2.1 infrastructure (plants an
Slide 18: Cost Control Supports Margins
COST CONTROL SUPPORTS MARGINS like-for-like FY 2020 FY 2019 change change • Like-for-like Gross Profit margin up 20bps Comparable gross profit margin 37.9% 37.7% 20bps 20bps − Strong variable COGS base and cost control Comparable operating expenses 1,672.4 1,889.3 -11.5% -10.4% Comparable OPEX as %
Slide 19: Profitability Protected - Strong Cash Flow
PROFITABILITY PROTECTED - STRONG CASH FLOW like-for-like FY 2020 FY 2019 change change • Like-for-like EBIT declined by 13.5%, almost in line with the revenue decline Comparable EBIT (€m) 672.3 758.7 -11.4% -13.5% Comparable EBIT margin 11.0% 10.8% +20bps -20bps • Like-for-like EBIT margin fell by j
Slide 20: Emerging Segment More Resilient
EMERGING SEGMENT MORE RESILIENT TOP LINE CHANGE EBIT MARGIN FY 2020 vs FY 2020 vs • Volume and pack/channel FY 2019 Like-for like FY 2019 Like-for like mix declines most Total CCH Total CCH pronounced in Established Volume -5.7% -4.6% EBIT margin 11.0% 10.6% and Developing markets, Price/mix -4.1% -
Slide 21: Strong Balance Sheet
STRONG BALANCE SHEET • Closing net cash position: €1.3b • Additional facilities − €800m unutilised commercial paper facility − €800m unutilised revolving credit facility − No financial covenants that can impact liquidity or access to capital • Next bond maturity November 2024 • Gearing of 1.5x at th
Slide 22: Technical Guidance
TECHNICAL COMPARABILITY OF RESULTS IMPACTED BY: 1. Bambi acquisition (2019 and 2020) GUIDANCE • From July 2020 we are cycling the full consolidation of Bambi in our results • Impact: Bambi becomes part of our ‘organic’ business results ADD / (LESS) → 2. Multon & other JV accounting change (2020) M
Slide 23: Outlook
OUTLOOK • Economic outlook uncertain • Signs of restrictions easing but uncertainty remains • Continuously monitoring to prioritise opportunities • Expect a strong FX-n revenue recovery − Gradual volume recovery − Price/mix recovery driven by package mix − Pricing taken to offset Polish sugar tax wi
Slide 24: Q&A
Q&A For further information on Coca-Cola Hellenic please visit our website at: www.coca-colahellenic.com Or contact our investor relations team: Joanna Kennedy – Investor Relations Director Joanna.Kennedy@cchellenic.com +44 (0)7802 427505 Carla Fabiano – Investor Relations Manager Carla.Fabiano@cche
Slide 25: Continue Focusing on What Matters Most
CONTINUE FOCUSING ON WHAT MATTERS MOST OUR GROWTH PILLARS 2021 AND BEYOND 1 LEVERAGE OUR • Portfolio prioritization with Sparkling & Energy UNIQUE 24/7 PORTFOLIO • Coffee as a key focus • Targeted, more scalable innovations 2 WIN IN THE • Ecosystem of Digital (B2B2C) and physical RTM MARKET PLACE •