Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Coca-Cola Hellenic Bottling Company — Q1 2013 Earnings Presentation
28 slides from Coca-Cola HBC's earnings presentation, May 2013
Slide 1: Results for the three months ended 29 March 2013
Results for the three months ended 29 March 2013 Dimitris Lois - CEO Michalis Imellos - CFO
Slide 2: Disclaimer
Disclaimer Unless otherwise indicated, the information included herein relates to Coca-Cola Hellenic Bottling Company S.A. and its subsidiaries (“Coca-Cola Hellenic” or the “Company” or the “Group”) and does not reflect information relating to Coca-Cola HBC AG (“Coca-Cola HBC”), which became the new
Slide 3: We delivered on our strategic priorities in the first quarter of the year
We delivered on our strategic priorities in the first quarter of the year Continue winning in the marketplace Currency neutral revenue per case increased for the seventh consecutive quarter Challenging economic conditions, in addition to unseasonably cold weather in March Volume growth in all key ca
Slide 4: Financial Review
Financial Review Michalis Imellos Chief Financial Officer
Slide 5: Financial performance overview
Financial performance overview Q1’13 Q1’12 Ch. Volume (m u.c.) 427 427 flat Net Sales Revenue (Eur m) 1,432 1,433 flat Comp. EBIT (Eur m) (1) (1) +9% Comparable EPS (Eur) (0.04) (0.05) +20% Free Cash Flow (Eur m) (40) (32) -25% Financial indicators on a comparable basis exclude the recognition of re
Slide 6: Seventh consecutive quarter of growth in currency neutral net sales revenue per case
Seventh consecutive quarter of growth in currency neutral net sales revenue per case Q1’13 Total Coca-Cola Hellenic Volume Flat Currency neutral revenue per case +1% Established Markets Volume -7% Currency neutral revenue per case flat Developing Markets Volume -3% Currency neutral revenue per case
Slide 7: Input cost still growing versus Q1 2012 albeit at a slower pace
Input cost still growing versus Q1 2012 albeit at a slower pace Q1 2013 • Currency neutral input cost per case increased marginally in the quarter • EU sugar costs increased year-over-year • World sugar costs remained on a downward trend • Slightly lower aluminium costs in the quarter • PET resin co
Slide 8: We continue to focus on increasing operational efficiency
We continue to focus on increasing operational efficiency Q1’13 Q1’ 12 Ch. Net Sales Revenue (Eur m) 1,432 1,433 flat Comp. Operating Expenses (Eur m) 484 494 -2% OPEX as % of NSR 33.8% 34.5% -70bps (*) Financial indicators on a comparable basis exclude the recognition of restructuring costs, unreal
Slide 9: Emerging markets were the main drivers of comparable operating performance
Emerging markets were the main drivers of comparable operating performance Absolute change in Comparable EBIT Comparable EBIT in million Euros in million Euros Q1’13 Q1’12 Total CCH 0.1 (1.0) (1.1) Established -6.6 11.1 17.7 Developing -4.8 (14.8) (10.0) Emerging 11.5 2.7 (8.8) (*) Financial indicat
Slide 10: Restructuring update
Restructuring update FY 2013 targets • Benefits from 2013 restructuring initiatives expected at €30m on an annualised basis • Total benefits in 2013 (from 2012 and 2013 initiatives) expected at €65m • Expecting pre-tax restructuring charges of €50m in 2013 • Restructuring focus continues to be in es
Slide 11: Free Cash Flow, Working Capital
Free Cash Flow, Working Capital Q1’13 Q1’12 Ch. in million Euros Operating loss (EBIT) (11) (12) 1 Change in Working Capital (57) (23) (34) Net capital expenditure (52) (70) 18 Free Cash Flow (FCF) (40) (32) (8) 11
Slide 12: Diversified financial profile
Diversified financial profile Debt maturity profile Other available facilities in million € 600 •€500m Revolving Credit Facility until 2016 $ 500 € 500 $ 400 •€500m Bond Bridge Facility •€550m Squeeze-out Bridge Facility (down to €220m as of 20 May, 2013) 2013 2014 2015 2016 Sep Jan Sep Nov 12
Slide 13: 2013 Financial outlook
2013 Financial outlook • Currency neutral net sales revenue per case: Expecting growth year-over-year, albeit at a slower pace than 2012 • Currency neutral input costs per case: Expecting low single-digit increase • FX: Headwind based on current spot rates, but of lower magnitude than 2012 • Compara
Slide 14: Operational Review & Strategy
Operational Review & Strategy Dimitris Lois Chief Executive Officer
Slide 15: Strong volume growth in emerging markets; increased pressure in established
Strong volume growth in emerging markets; increased pressure in established Q1 2013 volume contribution by segment 427m 427m u.c. +7% u.c. -7% -3% Est ablished Developing Emer ging Q1 12 Q1 13 15
Slide 16: We continued to win in the marketplace
We continued to win in the marketplace 16
Slide 17: Solid volume growth in Q1 driven by key brands
Solid volume growth in Q1 driven by key brands Premium Sparkling grew by 2% Brand Coca-Cola grew by 2% Coca-Cola Zero grew by 10% Fanta grew by 5% Sprite grew by 4% Energy grew by 8% Tea grew by 6% Water declined by 9% Juice marginally declined Multon grew volume by 11% 17
Slide 18: Conditions in established markets deteriorated in Q1
Conditions in established markets deteriorated in Q1 Volume -7% Trademark Coca-Cola RTD-Tea Coca-Cola Zero Currency neutral net -5% -5% +9% sales revenue per case flat • Italy: Volume declined by high single-digits in the quarter, with Coca-Cola Zero up by 21%. Political and economic instability res
Slide 19: Volatility persists in developing markets
Volatility persists in developing markets Volume -3% Trademark Fanta Juice Coca-Cola +6% +3% Currency neutral net sales revenue per case flat -1% • Poland: Volume declined by mid single-digits in Q1, reflecting cold weather in March. • Hungary: Volume declined by mid single-digits in Q1; Coca-Cola Z
Slide 20: Emerging markets remain the growth driver
Emerging markets remain the growth driver Volume +7% Trademark Fanta RTD-Tea Coca-Cola Currency neutral net +10% +23% +11% sales revenue per case +4% • Russia: Volume increased by high single-digits in Q1. Growth in the quarter was broad-based with all categories showing volume increase, except wate
Slide 21: Our Strategy: Winning in the marketplace
Our Strategy Winning in the marketplace Revenue ahead of volume Focus on Cost leadership Generate solid Free Cash Flow 21
Slide 22: Winning in the marketplace
Winning in the marketplace We are number 1 in sparkling beverages in all of our 28 markets In 2012 we outperformed our main competitor in total NARTD across all our 28 countries 22
Slide 23: Package mix - Channel Mix: Driving revenue ahead of volume
Package mix- mix- Channel Mix: Driving revenue ahead of volume Package-mix * Channel Mix* Single serve Multi serve Immediate Consumption Future Consumption 40% 30% 70% 60% RTD Tea, Category Mix (Brand) 5% Other still, 1% Juice, 6% Water, 20% Sparkling beverages, 62% Low calorie sparkling beverages,
Slide 24: SAP is a key enabler
Optimising our cost base to enhance competitiveness Infrastructure optimisation SAP is a Logistics excellence key enabler Manage OPEX and Working Capital 24
Slide 25: Use of Cash
Use of Cash Re-invest in the business to drive profitable volume and revenue growth M&A opportunities with compelling strategic rationale for our business portfolio Return cash to our shareholders 25
Slide 26: Update on transaction
Update on | transaction | ,pmission DA F
Slide 27: Long-term growth drivers
Long--term growth drivers Long Most known brands in Low per capita the world! consumption with great potential to grow Diverse geographic footprint with strong emerging market exposure Strong focus on cost leadership and history Solid track record of of solid cash winning in the generation marketpla
Slide 28: For further information on Coca-Cola Hellenic please visit our website
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 28
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