Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- · BMV:KOF/UBL
Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- — Coca-Cola FEMSA — Investor Presentation (May 2015)
20 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s investor presentation, May 2015
Slide 1: A Time for... Transformation
Slide 2: Cautionary Statement
Cautionary Statement FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” These forward-looking statements relate to Coca-Cola FEMSA, S.A.B. de C.V. its Subsidiaries (“KOF”) and their businesses, and are based on KOF management’s good faith expectations regarding KOF an
Slide 3: KOF has travelled a successful growth journey
In the last two decades as a public bottler, KOF has travelled a successful growth journey… Coca-Cola FEMSA Volume (MMUC) 2013 Yoli Spaipa 4,500 Fluminense 2012 Filipinas FOQUE Santa Clara 3,000 2008 2011 REMIL G. Tampico CIMSA 2010 2003 1,500 Matte Leao PANAMCO 2007 Estrella Azul Jugos del 1994 Val
Slide 4: Largest franchise bottler in the world, operating in two attractive regions
…to become the largest franchise bottler in the world, operating in two of the most attractive regions for its industry… 10 years ~ 26 Bn Transactions(1) CAGR (1) ~ 4 Bn Unit Cases(1) +8% US$ +11 Bn in Revenues(1) +13% US$ ~2 Bn in EBITDA(1) +11% Industry growth CAGR 14-19 (2) Southeast LATAM Asia V
Slide 5: Strategic partner to the Coca-Cola System
…as a strategic partner to the Coca-Cola System, representing close to 13% of global volume “… we partnered with Coca- KO Volume (worldwide) (1) Cola FEMSA to jointly acquire the Jugos del Valle business Volume Growth in 2007… Today, Del Valle is 5y-CAGR the first of our $1 billion (2009-2013) brand
Slide 6: Solid results during the first quarter of 2015
We delivered solid results during the first quarter of 2015 despite a complex environment… Committed with protecting our Currency neutral business’ profitability… excluding Venezuela Our transactions outpaced volume performance by at least one percentage Revenues +6% point We increased prices in
Slide 7: Adjusting translation of Venezuela results to the SIMADI exchange rate
…and adjusting the translation of Venezuela results to the SIMADI exchange rate Our Venezuelan operation continues to deliver solid results, growing volume, pricing and expanding EBITDA margins in local currency Venezuela results of total mix Volume Revenues EBITDA 2.2% VEB @ 192 7.6% 2.3% 7.6% 8.1%
Slide 8: Our Strategic Framework guides our quest for long-term profitable growth
Our Strategic Framework guides our quest for long-term profitable growth Full Potential Innovation Outperform the Industry in Be at the forefront of terms of Revenue innovation to satisfy and Profits consumers and clients alike Continue developing our core competences and evolving our culture Defend
Slide 9: Industry faces short term challenges being addressed rapidly
Our industry faces short term challenges that are being addressed rapidly and effectively… • Affordable portfolio with focus • Mexican economy on returnable presentations growing slower than expected and Brazilian • Increasing the number of deceleration transactions through single continues serve pr
Slide 10: Mid-term strategy to achieve operational excellence
… as part of a mid-term strategy to achieve operational excellence across our territories 1 • Drive Colas Revenue Growth via segmented portfolio and expansion of relevant prices points and packages • Seize Flavors opportunities by strengthening our core Portfolio 2 brands and innovating in products
Slide 11: Geographic footprint with attractive growth opportunities
Our geographic footprint has one of the most attractive growth opportunities in the beverage industry… Latin America and Southeast Asia have a USD 28 Bn opportunity to be captured in the following years NARTDs value growth by type of country Bn USD, 2014 to 2019 6 11 7 7 (10%) (6%) 721 14 (7%) 21 (1
Slide 12: Current operations could capture +500 MM UC and +3.7 Bn USD in revenues
…and our current operations could capture +500 MM UC and +3.7 Bn USD in revenues in coming years Based on the current share and the industry growth profile our territories could generate healthy organic top-line growth in the next five years… +500 million unit cases +3.7 billion USD in revenues orga
Slide 13: Global trends shaping consumer, channel and category evolution
Our industry faces global trends that are shaping consumer, channel and category evolution… Changing Health & Disruptive Urbanization Regulation demographics Wellness technologies Increase in middle class Migration from rural to Increase in focus on More stringent Technological in emerging markets u
Slide 14: Opportunities to capture increased value
…which we see as opportunities to capture increased value… CSDs are expected to grow at lower Focusing on transactions through rates in Latam and even decrease in developed countries and to … higher profitability packages NCBs will drive the soft drinks Investing in our joint ventures to industry gr
Slide 15: Re-designing a world-class organization
…as we re-design a world-class organization… A leaner and empowered new …with great potential to provide organization… efficiencies and savings Focus on: ▪ Re-Shape organization Before After ▪ Supply Chain transformation -20% layers +30% span ▪ COEs creation Benefits obtained: ▪ Increased accountabi
Slide 16: Building a sustainable competitive advantage through capability development
…building a sustainable, competitive advantage through capability development Coca-Cola FEMSA Excellence Centers Commercial Focus on Sales Supply IT Chain Best infrastructure Leverage digital and RTM capabilities technology 16
Slide 17: Modernizing KOF via state-of-the-art technologies
As we modernize KOF via state-of-the-art technologies… Infrastructure Distribution Manufacturing Capacity optimization and New manufacturing model operative cost reduction in all KOF plants Improve productivity and Cross-docks and cross-trucks Standard manufacturing structure and efficiencie
Slide 18: Investing to lead the system with best-in-class infrastructure
…we continue investing to lead the system with best-in- class infrastructure… +US$ 630 million invested on infrastructure Sumaré Warehouse Jundai Vertical Warehouse Horus plant in Brazil in Brazil in Colombia Itabirito plant in Brazil Canlubang plant in the Philippines 18
Slide 19: Generating shareholder value through operating and financial discipline
…and continue generating shareholder value through our operating and financial discipline KOF EBITDA margins Free Cash Flow generation 19.5% 19.3% 18.8% 18.9% ~US$600 MM 18.3% on a yearly basis 2011 2012 2013 2014 LTM 1Q15 Dividend per share Fiscal year – Mexican pesos 2.77 2.90 2.90 3.09 2.36 1.41
Slide 20: Thanks
Thanks