Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — FY2016 Earnings Presentation
22 slides from Coca-cola Hbc's earnings presentation, Feb 16, 2017
Slide 1: Results presentation Full-year 2016
Results presentation Full-year 2016 16 February 2017
Slide 2: Forward-looking statements
Forward-looking statements 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 “Company” or “we” or the “Group”). This doc
Slide 3: Full-year highlights
Good progress in the year Full-year highlights • Good progress in the year, delivering in line with our 2020 strategic plan • FX-neutral net sales revenue up 3.0% • Substantial improvement in FX-neutral revenue per case, up 2.9% • Volume increased marginally • Operating expenses as percentage of net
Slide 4: Financial review
Financial review Michalis Imellos | Chief Financial Officer
Slide 5: Financial performance overview
Growing our business in challenging conditions Financial performance overview FY '16 FY '15 change • FX-neutral net sales revenue Volume (m u.c.) 2,057.9 2,055.0 0.1% growing Net Sales Revenue (€m) 6,219.0 6,346.1 -2.0% • Marginal increase in volume FX-neutral Net Sales Revenue (€m) 6,219.0 6,038.0
Slide 6: Financial performance overview
Growing our business in challenging conditions Financial performance overview FY '16 FY '15 change • Better price/mix and cost efficiencies, Comparable EBIT (€m) 517.5 473.2 9.4% more than offsetting currency headwinds Comparable EBIT Margin 8.3% 7.5% 90bps Comparable Net Profit (€m) 352.1 314.3 12.
Slide 7: Substantial improvement in FX-neutral net sales revenue per case
Actions delivering growth Substantial improvement in FX-neutral net sales revenue per case FY ‘16 vs. FY ’15 Total CCH Volume 0.1% FX-neutral revenue per case 2.9% Established Markets Volume -2.3% FX-neutral revenue per case 0.3% Developing Markets Volume 1.3% FX-neutral revenue per case 0.6% Emergi
Slide 8: Input costs benign overall
Actions lowering our costs Input costs benign overall • Input cost per case was stable in the period on an FX-neutral basis • Contracts ensured favourable sugar costs • PET resin costs increased year on year, driven by higher oil prices Results presentation | Full-year results | February 2017 8
Slide 9: Profit and margin growth
Established markets delivering profitability Profit and margin growth Comparable EBIT (€m) Comparable EBIT margin FY '16 FY '15 FY '16 Change vs ‘15 Established +44 242 199 10.1% 210bps Developing -2 97 99 8.9% -20bps Emerging +2 178 176 6.6% 20bps Total CCH +44 517 473 8.3% 90bps Financial indicato
Slide 10: Restructuring plans
Maintaining a lean platform Restructuring plans FY 2016 €38m of pre-tax restructuring costs in the period Restructuring efforts focused mostly on Emerging segments as well as Established and Developing where appropriate FY 2017 Going forward we expect: • pre-tax restructuring charges totalling €26m
Slide 11: Strong free cash flow generation
Operational profitability generating cash Strong free cash flow generation FY '16 FY '15 change • Free cash flow 5% higher than EBITDA (€m) 846 766 80 prior year Working Capital change (€m) 12 44 -32 • Key contributor to free cash flow Net Capital Expenditure (€m) -332 -328 -4 performance is improvi
Slide 12: Diversified financial profile
Balance sheet flexibility Diversified financial profile Debt maturity profile Net debt / Comparable EBITDA • €600 million November 2016 bond refinanced €800m • €5.9 million reduction in total net financing costs due to decreased net foreign exchange losses €600m 1.5x 1.25x • Net debt/EBITDA ratio at
Slide 13: EBIT margin development
Operating leverage drivingmargin expansion EBIT margin development +0.4pp +2.1pp -1.6pp +1.0pp 0.0pp 8.3% 8.3% 7.5% 7.5% -0.1pp 2015 FY Volume Revenue Cost FX & Input 2016 FY 2015 FY Gross Comp. 2016 FY EBIT margin leverage leverage efficiencies costs EBIT margin EBIT margin margin OPEX EBIT margin
Slide 14: Operational review and strategy
Operational review and strategy Dimitris Lois | Chief Executive Officer
Slide 15: FY volume by segment
Business maintaining volumes FY volume by segment +1.3% +1.2% -2.3% 2055 2058 FY 15 Established Developing Emerging FY 16 Results presentation | Full-year results | February 2017 15
Slide 16: Volume growth by category
Meeting the evolving preferences of our consumers Volume growth by category YoY growth FY '16 FY '15 Sparkling 1% 2% Trademark Coca-Cola 1% 3% Coca-Cola Zero 6% 24% Juice -3% 8% Multon brands -4% 14% Water -2% 5% Energy 21% 7% Tea -5% -4% Results presentation | Full-year results | February 2017 16
Slide 17: Established markets
Focusing on value and execution Established markets Italy Volume decline in all categories except -2% Trademark +6% Coca-Cola Energy Coca-Cola Zero Switzerland Sparkling decline – good Decline driven by Stills growth from Coke Zero Good growth in Coca- and Fanta -2% Cola Regular and Coca- Water grow
Slide 18: Developing markets
Continuing growth Developing markets Poland Volume up low single digits +2% +11% Trademark Coca-Cola Growth in Sparkling and Coca-Cola Zero Energy Czech Republic Declines in Water Marginal volume decline -0.5% Sparkling, Juice and Energy growing well Water declined cycling a hot summer 2015 Water Hu
Slide 19: Emerging markets
Growing despite Russia decline Emerging markets +2% Trademark -3% Juice Romania Coca-Cola Strong growth maintained -2% Eighth consecutive quarter of growth Strong performance across all categories Water Russia Nigeria Volume decline slowing +1.2% +7.1% in H2 Strong double digit Good growth of Coke p
Slide 20: Looking ahead
Confident in maintaining growth Looking ahead We expect to continue on the growth trajectory in 2017. Improved volume growth Continue to grow FX-neutral net sales revenue per case Input cost headwind: high single-digit increase Adverse FX impact slowing to c.€15m Reduction in operating expenses as a
Slide 21: Q&A
Q&A For further information on Coca-Cola Or contact our investor relations team Hellenic please visit our website at: investor.relations@cchellenic.com www.coca-colahellenic.com +30.210.6183 100
Slide 22: 2020 strategic plan
Continuing to make good progress 2020 strategic plan Drive Focus Improve Invest Objectives volume growth on value efficiency in business Scorecard 4-5% p.a 26-27% Capital expenditure Average currency-neutral revenue growth by 2020 Comparable OpEx as % of 5.5%-6.5% revenue of revenue 11% Working capi