Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Q3 2015 Earnings Presentation
19 slides from Coca-cola Company (the)'s earnings presentation, Oct 21, 2015
Slide 1: Third Quarter 2015 Earnings Call
Third Quarter 2015 Earnings Call October 21, 2015
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: Topics
Topics Strategic Actions and Progress – Muhtar Kent, Chairman & CEO Q3 2015 Review – James Quincey, President & COO Financial Review – Kathy Waller, CFO Q&A 3 3
Slide 4: We moved urgently last year to accelerate growth and improve profitability
We moved urgently last year to accelerate growth and improve profitability 1 Drive revenue and profit growth 2 Disciplined brand and growth investments Revenue, Profit 3 Drive efficiency through aggressive productivity & Returns 4 Streamline and simplify organization 5 Refocus on core business model
Slide 5: Driving revenue and profit growth
Driving revenue and profit growth Emerging Markets Developing Markets • Segmented markets to develop long-term high industry growth, low market share high industry growth, high market share revenue growth strategies based on clear Balanced Volume and volume, price, investment and profit Volume Led P
Slide 6: Disciplined brand and growth investments
Disciplined brand and growth investments Media Investments Marketing Organization New Growth Platforms • Significantly increased media • New Chief Marketing Officer investments in 2014 and YTD • Improved quality of 2015 advertising • YTD value share performance • Rewired marketing accelerating acros
Slide 7: Productivity efforts and operating model are on track
Productivity efforts and operating model are on track Productivity • On track across all spend areas to deliver >$500m this year • Building a culture focused on getting better every day and challenging every dollar • Implemented zero-based work • Disciplined program management approach to drive COGS
Slide 8: Focusing on our core while evolving our bottling system
Focusing on our core while evolving our bottling system 21st Century Beverage Coca-Cola Partnership Model European Partners North America Europe • Creates competitively advantaged model • Creates the largest independent Coca-Cola RED tailored to the US market bottler based on net revenues • Roadmap
Slide 9: Topics
Topics Strategic Actions and Progress – Muhtar Kent, Chairman & CEO Q3 2015 Review – James Quincey, President & COO Financial Review – Kathy Waller, CFO Q&A 9 9
Slide 10: Q3 Update: US and Europe bottling landscape
Q3 Update: US and Europe bottling landscape North National Product North 21st Century Beverage Coca-Cola America Supply System Europe America Partnership Model European Partners • National production system that • Signed LOIs on additional • Creates the largest independent balances system scale with
Slide 11: Focus on execution and reinvestment drove improved results
Focus on execution and reinvestment drove improved results Winning Metrics: Q3 vs PY Value Share - Sparkling - Still - NARTD Growth/Profit Metrics: Q3 vs PY YTD vs PY Unit Cases (calculated on average daily sales basis) 3% 2% Organic Revenue* 3% 5% - Volume (Concentrate Sales / Reported Volume) 0% 3
Slide 12: Broad-based topline performance
Broad-based topline performance Q3 2015 organic revenue growth* Bottling Investments: +3% Europe: +3% • Led by operations in Germany, India and Vietnam • Strong commercial and North America: +3% marketing activities • Strong quarter in CSE BU • Disciplined approach to • Good weather in much of regio
Slide 13: Summary
Summary • Positive step toward goal of accelerating topline growth • Solid pricing and unit case volume growth in quarter • Confident in strategies and execution • Remain on track to deliver against our expectations 13
Slide 14: Topics
Strategic Actions and Progress – Muhtar Kent, Chairman & CEO Q3 2015 Review – James Quincey, President & COO Financial Review – Kathy Waller, CFO Q&A 14 14
Slide 15: Our third quarter results are broadly in line with our expectations
Our third quarter results are broadly in line with our expectations • Q3 EPS considerations – 3% organic revenue growth driven by 3% price/mix – Positive pricing and product mix across many markets, benefiting from positive geographic mix – Comparable currency neutral gross margin expanded – 8% grow
Slide 16: Full Year 2015 Outlook
Full Year 2015 Outlook Structural Items • Expected to be a 1% headwind on both net revenues and income before taxes Currency • Now expected to be 7% headwind on net revenues, 11% headwind on operating income and 8% headwind on income before taxes Net Share • Expected to be $2.0 to $2.5 billion Repur
Slide 17: Fourth Quarter 2015 Considerations
Fourth Quarter 2015 Considerations Calendar • Six fewer selling days than last year Marketing • Expect substantial growth in DME due to increase in media investments Investments this year as well as cycling the timing of expenses Structural • Expected to be slight headwind on net revenues, 2% headwi
Slide 18: Q&A
Q&A
Slide 19: Summary
Summary • Our Company has undergone a substantial amount of change over the past 12 months • Third quarter results demonstrate continued progress against our five strategic initiatives • The long-term dynamics of our industry remain promising • The Coca-Cola Company is best positioned to capture the
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