Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Deutsche Bank Consumer Conference 2014
20 slides from Coca-Cola HBC's conference presentation, Jun 18, 2014
Slide 1: Deutsche Bank Consumer Conference
Eee : DEUTSCHE BANE Ngeroeat CONSUMER CONFERENCE © =m Pe ea =—=z> iis June 2014 * Dimitris Lois Chief Executive Officer r+ Cogpttola / " : “aaes dase Hellenic Bottling Company ae = 2% we CA
Slide 2: Forward-looking statements
Forward-looking statements Unless otherwise indicated, the condensed consolidated 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 document co
Slide 3: Overview
Overview 3
Slide 4: Coca-Cola HBC at a glance
Coca-Cola HBC at a glance €7 billion revenues 2.1 billion unit cases 28 countries of sold operation over 3 continents 11 consecutive quarters 50 billion servings per with significant exposure of currency-neutral annum in emerging markets revenue per case growth (as at Q1 2014) 585 million population
Slide 5: A diverse and balanced portfolio
A diverse and balanced portfolio Emerging markets Developing markets Armenia, Belarus, Bosnia and Czech Republic, Croatia, Herzegovina, Bulgaria, FYROM, Estonia, Hungary, Latvia, Moldova, Montenegro, Nigeria, Lithuania, Poland, Slovakia, Romania, Russia, Serbia, Ukraine Slovenia Population: 417 mill
Slide 6: Financial highlights
Financial highlights Net sales revenue Volume Reported NSR per unit case by segment in million unit cases in Euros 6,544 6,762 6,824 7,045 6,874 2,069 2,105 2,087 2,085 2,061 3.38 3.34 2,928 2,862 2,835 2,702 2,540 3.23 3.27 3.16 1,148 1,106 1,140 1,162 1,149 2,467 2,760 2,828 3,195 3,229 2009 2010
Slide 7: The opportunity we see
The opportunity we see Business growth Margin leverage Per capita development Revenue growth management Market share growth Operational leverage Emerging markets exposure Operational cost control Diverse product portfolio Infrastructure rationalisation and logistics optimisation SAP W2 exploitation
Slide 8: Footprint with attractive long-term potential
Footprint with attractive long-term potential 660 584 2013 Total sparkling category servings per capita 461 416 353 321 298 301 280 219 220 Developing 208 204 209 166 166 Established 201 134 142 123 93 Emerging 105 47 United States Italy Montenegro Mexico Egypt France Romania Russia Nigeria Belgium
Slide 9: Driving revenue ahead of volume
Driving revenue ahead of volume Package mix Channel mix Single-serve Multi-serve Immediate consumption Future consumption 39% 61% 31% 69% Category mix Energy Pricing opportunities drinks, 1% RTD Tea, Other still, 5% 1% Juice, 6% Water, 18% Low Sparkling calorie beverages, sparkling 63% beverages, 6%
Slide 10: Strategy
Coca-Cola Hellenic Bottling Company Strategy 4
Slide 11: Winning in the marketplace
Winning in the marketplace 43 % +0.8 18 % +0.8 12 % -2.3 Coca-Cola HBC Biggest competitor Private label share in sparkling share in sparkling share in sparkling 18 % +0.8 8 % +0.7 17 % -2.1 Coca-Cola HBC Biggest competitor Private label share in NARTD share in NARTD share in NARTD Source: Nielsen 20
Slide 12: Deploying initiatives to win in the marketplace
Deploying initiatives to win in the marketplace Italy FC RED Score Right 75 Execution 53 Daily 25 RED 2011 2012 2013 12
Slide 13: Growing revenue ahead of volume
Growing revenue ahead of volume • Delivered currency-neutral net sales revenue per case growth for Occasion 11 consecutive quarters Brands • Implemented OBPPC architecture to Packages ensure relevance to the consumer Prices • Recovering economies expected to present pricing opportunities Channel 13
Slide 14: Increasing consumption of SSDs in Italy with OBPPC
Increasing consumption of SSDs in Italy with OBPPC INCIDENCE ZONE 1. Dairy (NEW) 2. Water section 3. Check-out and cooler The right pack, in the right zone 4. Bakery 1L 0.50L FREQUENCY ZONE Implementation 1. Cheese and cold cuts counter 2. Ready meals 3. Fruit and vegetables 4. Pasta 1.75L 6x0.33L U
Slide 15: Committing to cost leadership
Committing to cost leadership Infrastructure optimisation Operational control Number of plants OpEx reduction -32% -190 bps since 2008 in the Established as % of NSR, since 2008 and Developing segments Number of distribution centres -9% since 2008 Number of warehouses -16% since 2008 15
Slide 16: Optimising the supply chain network
Optimising the supply chain network Italy From 5 core plants in 2012 to 3 core plants in 2014 Opportunity Execution Result Network complexity 3 plants near the biggest demand Implementation in 14 months areas Leveraging the size of our plants 90bps reduction in supply No plant under 40m unit cases c
Slide 17: Returning cash to shareholders
Generating free cash flow Working capital Bolt-on acquisitions Negative year-end of local brands position mainly in still drinks Returning cash to Capital expenditure Strong balance sheet shareholders 5.5-6.5% of NSR Net Debt to Comp. EBITDA at 1.9x Source: FY2013 data unless otherwise stated 17
Slide 18: Significant cash generation in Italy
Significant cash generation in Italy To CCHBC Group 0.19 € (60%) Cash flow from operations1 290m€ = 0.32 € per unit case sold Investments for growth 0.13 € (40%) 1 Cash flow from operations in the last three years 18
Slide 19: The Best is Yet to Come!
The Best is Yet to Come! • We have medium to long-term opportunities • volume and revenue growth • improvement in the cost structure • We are executing well in every area where we have control • Our current platform is more efficient than in peak margin years and should ensure that volume growth in
Slide 20: Cogpatola
Cogpatola Hellenic Bottling Company
Coca-Cola HBC — Deutsche Bank Consumer Conference 2014 on 6ix