Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Investor Presentation (2019)
69 slides from Coca-cola Company (the)'s investor presentation, 2019
Slide 1: Investor Overview: The Coca-Cola Company
INVESTOR OVERVIEW THE COCA-COLA COMPANY UPDATED FOR 3RD QUARTER 2019 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expres
Slide 3: Key Themes
KEY THEMES VISION & OPPORTUNITY EXITING THE TRANSFORMATION WINNING TODAY WHILE INVENTING TOMORROW DELIVERING SHAREOWNER VALUE OPERATING OVERVIEW 3
Slide 4: We Are Building a Total Beverage Company
VISION & OPPORTUNITY WE ARE BUILDING A TOTAL BEVERAGE COMPANY Diversifying Revenue Strong Global Position Pervasive Distribution Revenue Composition #1 Value Share Position in Global NARTD Global Footprint (Adjusted for Costa Acquisition) with Local Touch Sparkling Juice, Dairy Tea Hydration Energy
Slide 5: We Compete in a Great Industry
VISION & OPPORTUNITY WE COMPETE IN A GREAT INDUSTRY… Highly Diversified Compelling Opportunity Outpaced Relative Growth with Strong Pricing Power Hot & Cold Beverages Industry Industry Retail Value Growth % Sales by Channel Retail Value 2014-2017 CAGR Sparkling Hot Bev. Soft Drinks NARTD 4.2% NARTD
Slide 6: With Long-Term Growth Opportunity
VISION & OPPORTUNITY …WITH LONG-TERM GROWTH OPPORTUNITY Developed Markets Developing & Emerging Markets % of Volume Mix % of Volume Mix Non-Commercial 29% Alcohol 11% Non-Commercial Hot Beverages 72% KO: 1% Share 14% Cold Alcohol 4% Beverages Hot Beverages KO: 21% Share 9% KO: 0.3% Share 46% Cold Be
Slide 7: Navigating a Dynamic and Evolving Landscape
VISION & OPPORTUNITY NAVIGATING A DYNAMIC AND EVOLVING LANDSCAPE Evolving Consumer Increased Bifurcation Taxation / Regulation Trends Competition of Growth Considerations Strong Global, Ingredients Regional and Local Sugar / Excise Taxes Competitors Premium 2 1 3 Lower Barriers Digital Evolution to
Slide 8: Key Themes
KEY THEMES VISION & OPPORTUNITY EXITING THE TRANSFORMATION WINNING TODAY WHILE INVENTING TOMORROW DELIVERING SHAREOWNER VALUE OPERATING OVERVIEW 8
Slide 9: In Recent Years We Have Undergone a Fundamental Transformation
EXITING THE TRANSFORMATION IN RECENT YEARS WE HAVE UNDERGONE A FUNDAMENTAL TRANSFORMATION Revenue Mix 2015 2018 Through this transformation we … $44.3B $34.3B … returned to an asset-light model BIG … refranchised company-owned bottlers to the right partners … put in place new bottling contracts to d
Slide 10: Refranchising Was a Global Undertaking
EXITING THE TRANSFORMATION REFRANCHISING WAS A GLOBAL UNDERTAKING NORTH AMERICA EUROPE 21st Century Beverage Coca-Cola European Partnership Model Partners COMPLETED COMPLETED CHINA 2-Bottler Strategy for Mainland China COMPLETED 10
Slide 11: The Benefits of the Transformation Have Shown in Our Results
EXITING THE TRANSFORMATION THE BENEFITS OF THE TRANSFORMATION HAVE SHOWN IN OUR RESULTS 2018 vs. 2015 Key Drivers Net Revenues* $34.3B $(10.0)B • Refranchising activities reduced revenue and operating Operating Income* $9.9B $(0.4)B capital: • North America Operating Margin* 28.8% +560bps • China •
Slide 12: Key Themes
KEY THEMES VISION & OPPORTUNITY EXITING THE TRANSFORMATION WINNING TODAY WHILE INVENTING TOMORROW DELIVERING SHAREOWNER VALUE OPERATING OVERVIEW 12 12
Slide 13: Delivering Balanced Growth Year-to-Date
WINNING TODAY WHILE INVENTING TOMORROW DELIVERING BALANCED GROWTH YEAR-TO-DATE EMEA 7% Organic Revenue Growth* DD% Coke Zero Sugar Growth Fuze Tea Showing Positive Momentum after 2018 Launch North America Asia Pacific 2% Organic Revenue Growth* 4% Organic Revenue Growth* DD% Coke Zero Sugar Growth 1
Slide 14: A Platform for Sustained Performance
WINNING TODAY WHILE INVENTING TOMORROW A PLATFORM FOR SUSTAINED PERFORMANCE Disciplined Aligned and Winning with Our Portfolio Growth Engaged System Stakeholders Customers Governments Strategic Alignment NGOs Shared Associates Volume Opportunity A Winning Scale & to Value Culture Investment Growth C
Slide 15: A Platform for Sustained Performance
WINNING TODAY WHILE INVENTING TOMORROW A PLATFORM FOR SUSTAINED PERFORMANCE Disciplined Aligned and Winning with Our Portfolio Growth Engaged System Stakeholders Customers Governments Strategic Alignment NGOs Shared Associates Volume Opportunity A Winning Scale & to Value Culture Investment Growth C
Slide 16: Multiple Levers for Accelerating Portfolio Expansion
DISCIPLINED PORTFOLIO GROWTH WE HAVE MULTIPLE LEVERS FOR ACCELERATING PORTFOLIO EXPANSION 1 Innovation 2 Lift, Shift & Scale 3 Consumer-Centric M&A • Formulas & Ingredients • Leverage the Globe • Accelerate the Portfolio • Personalization • Test & Learn • Disciplined Investments • Price/Pack Archite
Slide 17: We Remain Disciplined in Our Approach to Innovation
DISCIPLINED PORTFOLIO GROWTH WE REMAIN DISCIPLINED IN OUR APPROACH TO INNOVATION Killing Zombies Broad Innovative Approach Accelerating Pipeline Product Innovation: Spectrum of Growth: Recent Key Innovations New Innovation: Analysis of ~2,000 product % Contribution to Unit launches across 5 years: C
Slide 18: Innovation: Sustained Relevance Within Sparkling
DISCIPLINED PORTFOLIO GROWTH INNOVATION: SUSTAINED RELEVANCE WITHIN SPARKLING Accelerating the Pace of Innovation TM Coke Retail Value Growth 6% 6% 4% 2% 2016 2017 2018 YTD 2019 Change in Cola Share within NARTD 0.1% Driving Revenue Growth Management Globally YESTERDAY TODAY 2014 2015 2016 2017 2018
Slide 19: Revenue Growth Management Is a Renewed Philosophy
DISCIPLINED PORTFOLIO GROWTH REVENUE GROWTH MANAGEMENT IS A RENEWED PHILOSOPHY ON SYSTEM-WIDE VALUE CREATION Old Mindset New Mindset Defined Strategy Consumer Volume Behavior Value Behavior (Profit & ROIC) Premiumization (Categories / Brands / Packs) Leverages Momentum Step-Change in Growth Trend Sh
Slide 20: Revenue Growth Management Is Dynamic and Evolving
DISCIPLINED PORTFOLIO GROWTH REVENUE GROWTH MANAGEMENT IS DYNAMIC AND EVOLVING Developed Markets Developing / Emerging Markets North America Example ~ 2x Romania Example System Gross Profit (compared to 12 oz. packs) 19% System Revenue Growth ~40% Sleek Can (compared to 11% for Single-serve pack tra
Slide 21: Expanding Our Portfolio Through Lift, Shift and Scale
DISCIPLINED PORTFOLIO GROWTH WE HAVE BEEN EXPANDING OUR PORTFOLIO THROUGH LIFT, SHIFT AND SCALE 37 EUROPEAN 32 GLOBAL 6 ASIAN MARKETS MARKETS MARKETS NOW MARKET LEADER 3x PRICE POINT INTERNAL IN 11 EUROPEAN OF MAINSTREAM INNOVATION WITH MARKETS WATER FURTHER PLANNED EXPANSION IN 2020 Source: Interna
Slide 22: Building a World-Class Coffee Platform Through Costa
DISCIPLINED PORTFOLIO GROWTH WE ARE BUILDING A WORLD-CLASS COFFEE PLATFORM THROUGH THE ACQUISITION OF COSTA Multiple Revenue Streams Proud to Ready-to- Stores Express Packaged Serve Drink Full retail offer ‘Bean & machine’ Self-Serve Coffee for at- showcasing hand- to support barista-quality Ready-t
Slide 23: Moving with Speed to Accelerate the Costa Business
DISCIPLINED PORTFOLIO GROWTH MOVING WITH SPEED TO ACCELERATE THE COSTA BUSINESS Proud to Serve Express Ready-to-Drink • Serving Costa coffee within • Freshly ground beans, real • Large, fast-growing category customers’ concepts steamed milk, barista-quality beverage • Coffee forward concept (less •
Slide 24: Leveraging Partnerships with Major Sporting Events for Costa
DISCIPLINED PORTFOLIO GROWTH LEVERAGING PARTNERSHIPS WITH WORLD’S BIGGEST SPORTING EVENTS TO BRING ADVANTAGE TO COSTA Planned Launch of Costa Ready-To-Drink in Q2 2019 in Select Markets 24
Slide 25: Leader, Challenger, Explorer Growth Framework
DISCIPLINED PORTFOLIO GROWTH OPERATIONALIZING THE LEADER, CHALLENGER, EXPLORER GROWTH FRAMEWORK % Combos Meeting * Brand Life-Stage Key Strategies Success Criteria 0% • Rethink marketing approaches 2017 31 • Kill Zombies, learn as we go EXPLORER (<10% Value Share) • Fund new Explorers & push winners
Slide 26: Resource Allocation Drives Performance (Mexico)
DISCIPLINED PORTFOLIO GROWTH RESOURCE ALLOCATION DRIVES PERFORMANCE AS WE GROW THE PORTFOLIO Mexico’s Journey from Explorer, to Challenger, to Leader 2006 Non-Sparkling Market Position: #6 2018 Non-Sparkling Market Position: #1 SPARKLING SOFT DRINKS SPARKLING SOFT DRINKS REVENUE * GROWTH * ~3x JUICE
Slide 27: A Platform for Sustained Performance
WINNING TODAY WHILE INVENTING TOMORROW A PLATFORM FOR SUSTAINED PERFORMANCE Disciplined Aligned and Winning with Our Portfolio Growth Engaged System Stakeholders Customers Governments Strategic Alignment NGOs Shared Associates Volume Opportunity A Winning Scale & to Value Culture Investment Growth C
Slide 28: Shared Vision of Disciplined Growth Across a Renewed System
ALIGNED AND ENGAGED SYSTEM SHARED VISION OF DISCIPLINED GROWTH ACROSS A RENEWED SYSTEM Aligned & Engaged System Driving Improved Results Globally >60% Strategic Global Outlet Coverage +4pts Alignment Volume A Winning Scale & Culture to Value Investment Cold Drink Equipment +300K Growth +2% Improved
Slide 29: Strategic Alignment Driving Accelerated Performance (CCEP)
ALIGNED AND ENGAGED SYSTEM STRATEGIC ALIGNMENT DRIVING ACCELERATED PERFORMANCE (Case Study Of Coca-Cola European Partners) A Renewed & Aligned Focus… …Driving Accelerated Results 1 FOCUS ON VALUE OVER VOLUME 2 ACCELERATED INNOVATION ‘LEGACY’ CCE CCEP • Removing Unprofitable SKUs • Double-Digit Volum
Slide 30: A Platform for Sustained Performance
WINNING TODAY WHILE INVENTING TOMORROW A PLATFORM FOR SUSTAINED PERFORMANCE Disciplined Aligned and Winning with Our Portfolio Growth Engaged System Stakeholders Customers Governments Strategic Alignment NGOs Shared Associates Volume Opportunity A Winning Scale & to Value Culture Investment Growth C
Slide 31: Re-Imagining the System to Build Future Moats in a Digital World
DIGITIZING THE ENTERPRISE WE ARE RE-IMAGINING THE SYSTEM TO BUILD FUTURE MOATS IN A DIGITAL WORLD Route-to- Consumer Digital Agile Supply Digital Consumer Experience Enabled Chain Platforms Physical Voice Artificial Chat Bot Augmented Digital Assistant Intelligence Engagement Reality Commerce Sampli
Slide 32: Investing in People to Drive Performance
FOSTERING A GROWTH CULTURE WE ARE INVESTING IN PEOPLE TO DRIVE PERFORMANCE Leadership Operating Model Field Strategic Actions Taken Lean, Efficient • New CEO & CFO, Appointed COO and CGO Enterprise Corporate Enabling • Lean Center Driving Decision-Making into the Field Center Services • Revised, Val
Slide 33: Driving Growth While Doing Business the Right Way
GROWING SUSTAINABLY DRIVING GROWTH WHILE DOING BUSINESS THE RIGHT WAY Goals and Progress WATER WASTE SUGAR REPLENISH 100%+ 100% BOTTLE/CAN REDUCTION CLIMATE CHANGE RECIPES, REDUCE CARBON OF WATER USED COLLECTION BY SMALL PACKS, BY 25% BY 2020 ANNUALLY 2030 BROADER PORTFOLIO Water neutral since 58% c
Slide 34: Taking Action to Reduce Our Sugar Footprint
GROWING SUSTAINABLY WE ARE TAKING ACTION TO REDUCE OUR SUGAR FOOTPRINT 1 Focus on Zeros Global Rollout of Coca-Cola Zero Sugar Reformulating Fanta 2 Reformulate to Reduce Sugar and Sprite in Key Markets Worldwide Affordable 3 Drive Small Packs Small Sparkling Package 4 Downsize Select Single-Serve P
Slide 35: World Without Waste
GROWING SUSTAINABLY WE ARE HELPING MAKE THE WORLD’S PACKAGING WASTE PROBLEM A THING OF THE PAST World Without Waste Goals • Help collect and recycle one bottle or can for every WORLD one we sell by 2030 • Continue to focus on making our packaging 100% recyclable by 2025 • Use 50% recycled materials
Slide 36: Key Themes
KEY THEMES VISION & OPPORTUNITY EXITING THE TRANSFORMATION WINNING TODAY WHILE INVENTING TOMORROW DELIVERING SHAREOWNER VALUE OPERATING OVERVIEW 36
Slide 37: Recent Actions Have Resulted in Strong Topline Growth
DELIVERING SHAREOWNER VALUE OUR RECENT ACTIONS HAVE RESULTED IN STRONG TOPLINE GROWTH Strategic Actions Organic Revenue* Growth • Sharper Focus on Value over Volume Long- Term 4 to 6% • Revenue Growth Management Initiatives 3% • Lift, Shift and Scale Strategy • Accelerating the Innovation Pipeline •
Slide 38: Results Play Out in Margins and Returns
DELIVERING SHAREOWNER VALUE WE ARE SEEING THE RESULTS OF OUR ACTIONS PLAY OUT IN MARGINS AND RETURNS Expanding Margins Increasing Returns Operating Margin* Return on Invested Capital** 19.1% 28.8% 26.5% 17.6% 17.2% 23.5% 2016 2017 2018 2016 2017 2018 * Comparable operating margin (non-GAAP) ** ROIC
Slide 39: Margins Are Manageable as We Expand the Portfolio
DELIVERING SHAREOWNER VALUE MARGINS ARE MANAGEABLE AS WE EXPAND THE PORTFOLIO Disciplined portfolio growth will help …in the short term, non-sparkling categories are drive long-term margin expansion… lower margin, but generate solid dollar profits • Category Expansion Gross Margin by Gross Profit Do
Slide 40: Focused on Delivering Productivity
DELIVERING SHAREOWNER VALUE WE ARE FOCUSED ON DELIVERING PRODUCTIVITY 2014 through 2018 2019 $3.8 Billion Total Gross Productivity Savings ($600 Million in 2019) We Will Continue to Seek Productivity in 2019 and Beyond through Three Main Cost Drivers Supply Chain Cost Marketing Investment Operating
Slide 41: Margin Expansion Across All Three Areas of the Business
DELIVERING SHAREOWNER VALUE STRONG FOCUS ON DRIVING MARGIN EXPANSION ACROSS ALL THREE AREAS OF THE BUSINESS Geographic Segments (North America & International) Global Ventures Bottling Investments • Drive Profitability in Sparkling • Capitalize on Revenue Synergies • Drive Improved Execution • Gain
Slide 42: Driving Margin Expansion Through Top-Line Growth and Productivity
DELIVERING SHAREOWNER VALUE DRIVING MARGIN EXPANSION THROUGH TOP-LINE GROWTH AND PRODUCTIVITY Focus Areas Key Drivers Biggest Areas of Opportunity Core Business Global Ventures Bottling TOP-LINE GROWTH • Pricing in-line with inflation Revenue Growth Management • Optimizing price/pack architecture •
Slide 43: Committed to Improving Free Cash Flow
DELIVERING SHAREOWNER VALUE COMMITTED TO IMPROVING FREE CASH FLOW Strong Focus on Adjusted Free Cash Flow Conversion Ratio* Target Key Drivers • Refranchising and Restructuring Costs 90% to 95% Productivity Causing a Drag on Conversion Program Costs 73% • Will Reduce Going Forward • Achieve Best-in-
Slide 44: Significant Opportunity in Working Capital
DELIVERING SHAREOWNER VALUE SIGNIFICANT OPPORTUNITY IN WORKING CAPITAL Days Payables Days Inventory Days Sales Outstanding Outstanding Outstanding 116 86 42 39 78 61 KO Peers KO Peers KO Peers $ Opportunity $1.3B $500M • Global Payment Terms • Finished Goods (Juice) • Maintain Current DSO Levels Act
Slide 45: Capital Allocation Strategy
DELIVERING SHAREOWNER VALUE CAPITAL ALLOCATION STRATEGY TO SUPPORT BOTH GROWTH AND RETURN AMBITIONS Cash from Operations Investing for Growth Return to Shareowners 1 REINVEST IN THE BUSINESS 2 CONTINUE TO GROW THE DIVIDEND Investments within marketing, innovation, Continue to grow dividend as a func
Slide 46: 2019 Outlook
DELIVERING SHAREOWNER VALUE 2019 OUTLOOK Organic Revenue* At Least 5% Comparable Currency Neutral 12% to 13% Operating Income* Comparable EPS* -1% to 1% Cash from Operations At Least $8.8 billion Capital Expenditures Approximately $2.2 billion Note: The company provided initial 2019 outlook with its
Slide 47: Sustainable Growth, Attractive Long-Term Investment
DELIVERING SHAREOWNER VALUE SUSTAINABLE GROWTH… ATTRACTIVE LONG-TERM INVESTMENT Organic Operating Earnings Free Cash Key Strengths Revenue * Income ** Per Share** Flow* Global leader in growth industry Clear destination Aligned and engaged system 4 to 6% 6 to 8% 7 to 9% 90 to 95% Adjusted Free Cash
Slide 48: A Bright Future Ahead
DELIVERING SHAREOWNER VALUE A BRIGHT FUTURE AHEAD • Clear Strategy for Sustainable Growth is Driving Topline Momentum • Path to Expanding Operating Margins Across Our Businesses • Disciplined Capital Allocation via Returns-Based Framework • Committed to Improving Cash Flow Generation • Delivering Ag
Slide 49: Key Themes
KEY THEMES VISION & OPPORTUNITY EXITING THE TRANSFORMATION WINNING TODAY WHILE INVENTING TOMORROW DELIVERING SHAREOWNER VALUE OPERATING OVERVIEW 49
Slide 50: Consolidated Geographic Overview
OPERATING OVERVIEW CONSOLIDATED GEOGRAPHIC OVERVIEW Unit Case Volume Net Revenues* Operating Income* Bottling Bottling Investments Asia Pacific North America Investments 1% 23% North America Asia Pacific 19% 19% 33% 21% North America 23% Asia Pacific Global Global Ventures Ventures 15% 1% 2% 29.6 $3
Slide 51: New Global Ventures Reporting Segment
OPERATING OVERVIEW NEW GLOBAL VENTURES REPORTING SEGMENT BUSINESS • We created a new operating segment ECONOMICS MODEL to house the acquisition of Costa Ltd. (closed in January 2019), as well as other brands, acquisitions and Coffee Retail, Food Full P&L investments we feel we can scale Service, and
Slide 52: Europe, Middle East & Africa
OPERATING OVERVIEW EUROPE, MIDDLE EAST & AFRICA Overview Business Unit Volume Mix & Key Bottlers • ~130 markets – developed, developing, emerging • ~2.2 billion consumers Western Europe 30% Central & Eastern • $310 billion in industry retail value Europe Turkey, Caucasus & 22% • KO NARTD value share
Slide 53: Latin America
OPERATING OVERVIEW Business Unit Volume Mix & Key Bottlers LATIN AMERICA Mexico 48% Overview Latin Center 13% • 39 markets – primarily developing and emerging • ~650 million consumers • $80 billion in industry retail value • KO NARTD value share ~50% Brazil • KO revenue $4.0 billion 21% • KO operati
Slide 54: North America
OPERATING OVERVIEW Business Unit Volume Mix & Key Bottlers NORTH AMERICA Overview Canada 5% • Flagship market, includes finished goods juice and foodservice businesses • 360+ million consumers • $230 billion in industry retail value • KO NARTD value share ~30% • KO revenue $11.6 billion • KO operati
Slide 55: Asia Pacific
OPERATING OVERVIEW Business Unit Volume Mix & Key Bottlers ASIA PACIFIC Greater China & Korea 44% Japan Overview 14% • 32 markets – developed, developing, emerging • 4.5+ billion consumers India & • $345 billion in industry retail value Southwest Asia ASEAN 15% 22% • KO NARTD value share ~15% • KO r
Slide 56: Bottling Investments Geographic Footprint
OPERATING OVERVIEW BOTTLING INVESTMENTS GEOGRAPHIC FOOTPRINT Canada (Refranchising Completed) USA China (Refranchising Completed) (Refranchising Completed) Guatemala (Refranchising Completed) Current Markets Africa Bangladesh Cambodia India Malaysia Myanmar Nepal Uruguay Oman (Refranchising Complete
Slide 57: Appendix: Reconciliations of GAAP and Non-GAAP Financial Measures
INVESTOR OVERVIEW THE COCA-COLA COMPANY APPENDIX RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES 57
Slide 58: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Revenues: Year Ended Year Ended December 31, 2018 December 31, 2015 Reported (GAAP) $ 34,300 $ 44,294 Items Impacting Comparability: Other Items (9) (37) Comparable (
Slide 59: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Revenues by Operating Segment and Corporate: Nine Months Ended September 27, 2019 Europe, Middle East Latin North Asia Global Bottling & Africa America America Pacifi
Slide 60: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Operating Income: Nine Months Ended Nine Months Ended September 27, 2019 September 28, 2018 Reported (GAAP) $ 7,922 $ 7,327 Items Impacting Comparability: Asset Impairments 42 450
Slide 61: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Revenues: Year Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended December 31, 2016 March 31, 2017 June 30, 2017 September 29, 2017 Dec
Slide 62: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Revenues: Three Months Ended Three Months Ended Three Months Ended Three Months Ended March 30, 2018 June 29, 2018 September 28, 2018 December 31, 2018 Reported (GAAP
Slide 63: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Revenues: Three Months Ended Three Months Ended Three Months Ended March 29, 2019 June 28, 2019 September 27, 2019 Reported (GAAP) $ 8,694 $ 9,997 $ 9,507 Items Impac
Slide 64: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Operating Margin: Year Ended Year Ended Year Ended December 31, 2016 December 31, 2017 December 31, 2018 Reported Operating Margin (GAAP) 20.68% 21.42% 26.68% Items Impacting Comparability (Non-
Slide 65: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2015 Operating income $ 8,787 Equity income (loss) — net 489 Total 9,276 Effective tax rate 23.3% Net operating pr
Slide 66: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2016 Operating income $ 8,657 Equity income (loss) — net 835 Total 9,492 Effective tax rate 19.5% Net operating pr
Slide 67: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2017 Operating income $ 7,755 Equity income (loss) — net 1,072 Total 8,827 Effective tax rate 81.4% Net operating
Slide 68: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2018 Operating income $ 9,152 Equity income (loss) — net 1,008 Total 10,160 Effective tax rate 21.3% Net operating
Slide 69: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Free Cash Flow and Adjusted Free Cash Flow Conversion Ratio: Year Ended December 31, 2018 Net Cash Provided by Operating Activities $ 7,627 Purchases of Property, Plant and Equipme