20 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s conference presentation, March 2006
Slide 1: Coca-Cola FEMSA
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Slide 2: Cautionary Statement
Cautionary Statement FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements relate to Coca-Cola FEMSA, S.A. de C.V. and subsidiaries (“KOF”) and their bus
Slide 3: Agenda
Agenda 1. Overview 2. Brazil & Colombia 3. KOF Mexico 4. Our Operating Transformation Process 5. Growth Opportunities 3
Slide 4: KOF - 2005
KOF - 2005 Volume 2005 (1,889.2 MM UC) Revenues 2005 (US$4,723 MM) (1) Argentina Argentina 8% 6% Brazil 12% Brazil 13% Venezuela 10% Mexico 9% Mexico 54% Venezuela 56% Colombia 9% 10% 7% Colombia 6% Central America Central America Highlights - Mexico EBITDA 2005 (US$1,055 MM) (1) • The most importan
Slide 5: Agenda
Agenda 1. Overview 2. Brazil & Colombia 3. KOF Mexico 4. Our Operating Transformation Process 5. Growth Opportunities 5
Slide 6: KOF Brazil – A Successful Turnaround Story
KOF Brazil – A Successful Turnaround Story This experience provided us with the ability to take over the control of the presale function, developed the traditional channel, eliminating transshipment, improving our competitive position … Transhipment Traditional Channel % of Total Volume % of Total V
Slide 7: KOF Colombia – A Story of Innovation
KOF Colombia – A Story of Innovation When we arrived in Colombia, we found low per capita consumption of CSD’s and a weak competitive position of KO Brands Together with KO, we built a new flavor portfolio to increase our market share in this segment • Launching Crush Multi-Flavor brand • Colas* Fla
Slide 8: Agenda
Agenda 1. Overview 2. Brazil & Colombia 3. KOF Mexico 4. Our Operating Transformation Process 5. Growth Opportunities 8
Slide 9: Mexico – Changes in the Industry dynamics
Mexico – Changes in the Industry dynamics B-Brands Share of Sales CSDs Industry Volume by Channel(1) (2) Mom & Pops Supermarkets C Stores 5.9 6.3 6.8 6.9 6.7 6.7 7.2 6.9 3.8 3.7 9.3 8.3 3.6 3.6 8.8 9.1 10.6 10.0 9.7 9.7 3.4 3.2 2.7 2.7 84.9 85.5 84.4 84.0 82.7 83.3 83.1 83.4 1Q 04 2Q 04 3Q 04 4Q 04
Slide 10: KOF Mexico Evolution
KOF Mexico Evolution During 2003 and 2004 we focused on integrating our new operations… 2003 Var. 2004 2005* (May) 03 - 05 Clients (000s) 552.4 574.6 588.3 +6.5% Cooler Coverage 66% 67% 68% +2.0 pp Plants 16 12 12 -4 Distribution Centers 132 109 106 -26 Headcount 27,171 24,733 24,665 -2,506 Sku’s 27
Slide 11: Sales Volume (MM UC)
Sales Volume (MM UC) …while we still increase our sales volume… % Chg 05 vs 04 1,001.8 1,025.0 980.5 989.9 153.8 Jug 6.2 165.7 153.1 144.8 48.4 Water 10.1 56.8 43.9 37.7 10.5 Others 36.4 5.6 7.7 13.0 764.1 786.3 796.3 812.4 CSD 2.0 Total 3.5 2002 2003 2004 2005 11
Slide 12: Profitability
Profitability … which together with a better packaging segmentation have allowed us to capture more profitable volumes 54.1% 53.4% 53.0% 54.7% 53.0% 53.0% 53.4% 53.2% 53.9% 53.7% 52.7% 51.7% 30.7% 29.6% 34.6 27.4% 27.5% 28.5% 34.4 25.9% 27.0% 27.0% 24.9% 24.9% 25.2% 33.5 33.6 22.9% 32.5 32.7 31.9 31
Slide 13: Multi-segmentation model
Multi-segmentation model… • We have been developing an execution model segmented through a differentiated portfolio, adapting to the competitive environment of the country, like we did it in Argentina. • The revenue management strategies implemented in Argentina, have provided us with a base of know
Slide 14: Our “Portfolio of Choice” in Single Serve
Our “Portfolio of Choice” in Single Serve…. During the last two years we also adapted our packaging/product portfolio improving our competitive position, offering more than 13 different packaging presentations for brand Coca- Cola in Mexico with different price points, from Ps. 4 up to Ps. 16 CC 600
Slide 15: ….in Multi-serve presentations…
….in Multi-serve presentations… Additionally, we are strengthening our returnable portfolio with the introduction of new returnable presentations CC 2.5 lts N-Ret $16.00 BC 3.3 lts. $13.00 CC 2.5 lts. Ret CC 2.0 lts. N-Ret $13.00 $13.00 CC 1.5 lts.N-Ret PC 2.0 lts. PC 3.0 lts N Ret Price $11.00 $11.
Slide 16: … and for the flavors
… and for the flavors We are also reinforcing our flavor portfolio with the reintroduction of Mundet and Fanta Multi-flavors as regional brand players KOF Flavors 2.5 lts. KOF Sidral 2 lts. $13.00 $12.00 Jarritos 2.0 lts. KOF Flavors 2 lts. PC Flavors 2.5 lts. $10.00 $11.00 $11.00 Fanta MF 2.0 lts.
Slide 17: Agenda
Agenda 1. Overview 2. Brazil & Colombia 3. KOF Mexico 4. Our Operating Transformation Process 5. Growth Opportunities 17
Slide 18: KOF Mexico's Operational Transformation
KOF Mexico's Operational Transformation In Mexico, we have started the Operational Transformation Project Operational Transformation Multisegmentation Go to Market Collaborative Customer Relationship Model • Traditional Trade • Rural Territories • Modern Trade – Product portfolio by cluster • Local
Slide 19: Agenda
Agenda 1. Overview 2. Brazil & Colombia 3. KOF Mexico 4. Our Operating Transformation Process 5. Growth Opportunities 19
Slide 20: Growth opportunities
Growth opportunities • Improve per capita consumption • Opportunity to develop a segmented product portfolio, as in Argentina • Foster single serve consumption through directed strategies • Reinforce our portfolio of premium CSD’s brand alternatives • Opportunity to capture flavored carbonated soft