Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — FY2018 Earnings Presentation
26 slides from Coca-Cola HBC's earnings presentation, Feb 14, 2019
Slide 1: Results Presentation: Full-year results 2018
RESULTS PRESENTATION Full-year results 2018 14 February 2019
Slide 2: Forward-looking statements
Forward-looking statements Full-year results | February 2019 2 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 “Compan
Slide 3: Full-year highlights
Strong revenue growth drives margin expansion Full-year results | February 2019 3 Full-year highlights FX-neutral net sales revenue up 6.0% FX-neutral revenue per case, up 1.7% driven by product innovation, price and package mix Volume growth accelerated to 4.2%, with positive performance in all seg
Slide 4: Financial review
Financial review Michalis Imellos | Chief Financial Officer
Slide 5: Financial performance overview
Strong revenue growth drives operating leverage Full-year results | February 2019 5 Financial performance FY ‘18 FY ‘17 change overview Volume (m u.c.) 2,192.3 2,104.1 4.2% Net sales revenue (€m) 6,657.1 6,522.0 2.1% Volume up by 4.2% FX-neutral net sales revenue (€m) 6,657.1 6,283.1 6.0% FX-neutral
Slide 6: Financial performance overview
Strong revenue growth drives operating leverage Full-year results | February 2019 6 Financial performance FY ‘18 FY ’17 change overview Comparable EBIT (€m) 680.7 621.0 9.6% Comparable EBIT margin 10.2% 9.5% 70 bps Better price/mix and volume leverage more than offset decrease Comparable net profit
Slide 7: Volume and price/mix growth in all three segments
Broad-based and balanced growth Full-year results | February 2019 7 Volume and price/mix growth in FY ‘18 vs. FY ‘17 all three segments Total CCH Volume 4.2% Volume growth driven by: FX-neutral revenue per case 1.7% strong in-market execution, Established markets record number of new product Volume
Slide 8: Input costs slightly better than our expectations
A tailwind from input costs Full-year results | February 2019 8 Input costs slightly better than our expectations Input cost per case down 1.4% on an FX-neutral basis Contracts ensured favourable sugar costs PET resin prices increased, reflecting higher oil prices, offset by well-timed pre-buys High
Slide 9: Operating leverage delivering alongside higher marketing
Costs under control while top-line grows Full-year results | February 2019 9 Operating leverage delivering alongside higher marketing Volume (m u.c.) FY ‘18 2,192.3 FY ‘17 2,104.1 change 4.2% Operating leverage and ongoing cost Net sales revenue (€m) 6,657.1 6,522.0 2.1% efficiency measures driving
Slide 10: Profit and margin growth
Developing markets delivering exceptional profit growth Full-year results | February 2019 10 Profit and margin growth Comparable EBIT Comparable EBIT Comparable EBIT (change €m) (€m) margin FY ‘18 FY ‘17 FY ‘18 change Established -9.7 240.7 250.4 9.7% -50 bps Developing 44.7 137.0 92.3 10.5% 260 bps
Slide 11: Restructuring plans
Restructuring continues Full-year results | February 2019 11 Restructuring plans FY 2018 €33m of pre-tax restructuring costs in the period Restructuring efforts focused mostly on the Emerging markets Benefits from 2017 and 2018 initiatives €15m FY 2019 Going forward we expect: • pre-tax restructurin
Slide 12: Higher operating cash flow re-invested in revenue-generating assets
Generating cash despite higher Capex Full-year results | February 2019 12 Higher operating cash flow re-invested in EBITDA (€m) FY ‘18 968.7 FY ‘17 927.5 change 41.2 revenue-generating Working capital change (€m) -45.5 8.7 -54.2 assets Net capital expenditure (€m) -426.6 -377.6 -49.0 Free cash flow
Slide 13: Financing cost
Balance sheet strong Full-year results | February 2019 13 Financing cost Debt maturity profile Financing cost movements €4.6 million increase in €800m €4.5m €0.5m -€0.4m total financing costs compared to prior year €600m Driven by lower interest income €36.7m €41.3m 2020 2024 FY 17 Interest Finance
Slide 14: 2018 EBIT margin development
Operating leverage continues to drive margin expansion Full-year results | February 2019 14 2018 EBIT margin development 70 basis-point expansion in the EBIT margin overall with the following components: + 90 bps from volume leverage + 80 bps from revenue leverage + 10 bps from our cost productivity
Slide 15: Operational review and strategy
Operational review and strategy Zoran Bogdanovic | Chief Executive Officer
Slide 16: Driving a clear strategy
Driving a clear strategy Full-year results | February 2019 16 Drive Focus on volume value growth Improve Invest in efficiency the business
Slide 17: Volume by segment
A strong year for Developing Full-year results | February 2019 17 Volume by segment Million unit cases +4.3% Group volume increased by 4.2% 2,192 Developing grew by 8.8% +8.8% driven by Poland, Hungary and the Czech Republic +1.0% Emerging increased by 4.3% with growth in all 2,104 countries except
Slide 18: Growth in all categories
Strong contribution from Sparkling Full-year results | February 2019 18 Growth in all categories YoY growth FY ‘18 FY ‘17 Sparkling 4.3% 2.3% Sparkling saw the highest growth in a decade Trademark Coca-Cola 5.0% 2.7% Water volume improved Coca-Cola Zero 29.1% 22.4% slightly on prior year Water 3.2%
Slide 19: Established markets
A year focusing on innovation Full-year results | February 2019 19 Established markets Switzerland Good growth in +1% Trademark +16%Coca-Cola Sparkling and Energy Coca-Cola Zero Decline driven by RTD Tea Italy Sparkling decline – Greece +0.5% Water good growth from Good volume Lights and Zeros perfo
Slide 20: Developing markets
Broad-based growth in all markets Full-year results | February 2019 20 Developing markets +8% +23% Poland Czech Republic Volume growth in all All categories grew categories apart from RTD Tea Trademark Coca-Cola except for RTD Tea Coca-Cola Zero Good growth in Coke Sparkling grew by 8% Zero with fla
Slide 21: Emerging markets
Growth driven by Russia and our medium-sized markets Full-year results | February 2019 21 Emerging markets Romania +6% Trademark +64%Coca-Cola Strong results across all Coca-Cola Zero categories, especially Sparkling RTD Tea continues to Russia perform well Growth in underlying NARTD market Positive
Slide 22: Ambitious 2025 commitments
A recognisedsustainability leader Full-year results | February 2019 22 Ambitious 2025 commitments Made excellent progress towards our 2020 sustainability commitments Introduced ambitious 2025 commitments Determined to remain a leader
Slide 23: Nurturing the potential of our people
Nurturing the potential of our people Full-year results | February 2019 23
Slide 24: We expect another year of growth
Looking ahead with confidence Full-year results | February 2019 24 We expect another year of growth Volume growth in all segments Continued improvement in FX-neutral net sales revenue per case Input cost headwind in low single digits FX headwind of c. €50m at current favourable spot rates Another go
Slide 25: 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 investor.relations@cchellenic.com +30.210.6183 100
Slide 26: Most known brands in the world
Full-year results | February 2019 26 Most Low per capita Solid track known consumption record brands in with potential of winning the world for growth in the marketplace Diverse Consistent Strong focus on geographic footprint growth in cost leadership with strong emerging currency- and history marke