Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — H1 2014 Earnings Presentation
23 slides from Coca-Cola HBC's earnings presentation, Aug 7, 2014
Slide 1: 2014 Second Quarter and Half Year Results Presentation
2014 SECOND QUARTER = ANDHALF YEAR “RESUETSPRESENTATION *— 7 August 2014 i = BottlingiCompe
Slide 2: Forward-looking statements
2 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
Slide 3: Second quarter highlights
Second quarter highlights • Good market share gains • Increase in currency-neutral revenue per case for the 12th consecutive quarter • Pace of volume decline decelerated • Gross profit margin improvement both in Q2 and in the half year • OPEX as per cent of NSR resumed its improving trajectory • Rob
Slide 4: Financial review
Financial review Michalis Imellos - CFO
Slide 5: Financial performance overview
Financial performance overview Q2’14 Q2’13 Ch. H1’14 H1’13 Ch. Volume (m u.c.) 561 578 -3% 970 1,004 -3% Net Sales Revenue (€m) 1,852 1,949 -5% 3,183 3,381 -6% Currency-neutral NSR per case 3.30 3.21 +3% 3.28 3.20 +3% Comparable Gross Profit Margin % 37.4% 36.7% +70bps 35.8% 35.4% +40bps Comparable
Slide 6: Financial performance overview
Financial performance overview Q2’14 Q2’13 Ch. H1’14 H1’13 Ch. Comparable EBIT (€m) 194 179 +8% 167 178 -6% Comparable EBIT Margin % 10.4% 9.2% +120bps 5.2% 5.3% -10bps Comparable Net Profit (€m) 135 127 +6% 99 111 -11% Comparable EPS (€) 0.37 0.34 +9% 0.27 0.31 -13% Free Cash Flow (€m) 176 137 +28%
Slide 7: 12th consecutive quarter of growth in currency-neutral net sales revenue per case
12th consecutive quarter of growth in currency-neutral net sales revenue per case Q2’14 H1’14 Total CCH Volume -3% -3% Currency-neutral revenue per case +3% +3% Established Markets Volume -2% -4% Currency-neutral revenue per case +2% +1% Developing Markets Volume -5% -7% Currency-neutral revenue per
Slide 8: Input cost environment continues to be favourable
Input cost environment continues to be favourable • Currency-neutral input cost per case decreased by mid single digits in the quarter and in the first six months • EU sugar costs continued to decrease year on year • World sugar costs remained on a downward trend • PET resin costs decreased signific
Slide 9: Quarterly improvement in operating expenses
Quarterly improvement in operating expenses Q2’14 Q2’13 Ch. H1’14 H1’13 Ch. Net Sales Revenue (€m) 1,852 1,949 -5% 3,183 3,381 -7% Comparable Operating Expenses (€ m) (499) (536) -7% (974) (1,020) -5% Comparable OPEX as % of NSR 26.9% 27.5% -50bps 30.6% 30.2% +40bps Comparable EBIT Margin (%) 10.4%
Slide 10: Mixed segmental trends in comparable operating profit
Mixed segmental trends in comparable operating profit Q2 comparable EBIT Q2’14 Q2’13 million Euros Total CCH 15 194 179 Established 20 70 50 Developing 14 32 19 Emerging -19 91 110 Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging
Slide 11: Restructuring update
Restructuring update Q2 recap „ We incurred €5.1m in pre-tax restructuring costs in the second quarter „ Restructuring focus predominantly on Emerging markets FY 2014 targets „ We now expect total pre-tax restructuring charges to amount to €45m in 2014 „ Total benefits in 2014 (from 2013 and 2014 in
Slide 12: Free cash flow in the quarter
Free cash flow in the quarter Q2’14 Q2’13 Abs. H1’14 H1’13 Abs. in million Euros change change EBITDA 283 245 38 348 328 20 Cash from Working Capital (2) 1 (3) (89) (56) (33) Net Capital Expenditure (93) (100) 7 (140) (152) 12 Free Cash Flow 176 137 39 95 98 (3) * Differences in the absolute year-on
Slide 13: Diversified financial profile
Diversified financial profile Debt maturity portfolio in million €800 €600 $400 September November June 2015 2016 2020 13
Slide 14: 2014 Financial outlook
2014 Financial outlook • Currency-neutral net sales revenue per case expected to grow year on year at a higher rate than 2013 • Currency-neutral input costs per case are now expected to be slightly lower than previously expected • Adverse FX impact is now estimated to be in the €80m - €90m range • C
Slide 15: Operational review and strategy
Operational review and strategy Dimitris Lois - CEO
Slide 16: Established markets pace of decline decelerates
Established markets pace of decline decelerates 578m u.c. 561m u.c. -2% -5% -3% Q2 ‘13 Established Developing Emerging Q2 ‘14 16
Slide 17: Juice and Energy key category drivers for the quarter
Juice and Energy key category drivers for the quarter % y-o-y growth Q2 ‘14 H1’ 14 Sparkling -2% -4% Trademark Coca-Cola -1% -3% Coca-Cola Zero 7% 8% Juice 2% 2% Multon 3% 6% Water -5% -2% Energy 1% 2% Tea -11% -8% 17
Slide 18: Established markets: Moderation of negative trends
Established markets Moderation of negative trends Italy • Volume decline moderated to mid single digits in the quarter • Decline was mainly driven by Water Trademark Coca-Cola RTD-Tea Water • Underlying macroeconomic and trading Coca-Cola Zero -13% -4% environment remains challenging +1% +6% Greece
Slide 19: Developing markets: Focus on value
Developing markets Focus on value Poland • Volume declined by high single digits, cycling a low single-digit decline in the prior-year period Trademark Coca-Cola RTD-Tea Water • Our value-accretive volume initiatives and Coca-Cola Zero -13% -9% water rationalisation strategy contributed to -1% +9% d
Slide 20: Emerging markets: Sharp deterioration in consumer demand
Emerging markets Sharp deterioration in consumer demand Russia • Volume declined by low single digits, cycling low single-digit growth • Sharp deterioration in consumer demand Trademark RTD-Tea Water Coca-Cola Juice Water • We grew volume and value share in both Sparkling -13% +4% -4% +5% and NARTD
Slide 21: Looking ahead
Looking ahead • Continuing challenging volume environment, with all three segments likely to maintain the volume trends seen in the first half • We are focusing on the elements we can control • We expect the impact of the challenging volume environment to be offset by • positive trends in currency-n
Slide 22: For further information
FOR FURTHER INFORMATION ON-COCA-COLA HELLENIC PLEASE VISIT OUR WEBSITE AT: ~ WWW.COCA-COLAHELLENIC.COM OR CONTACT OUR INVESTOR RELATIONS TEAM INVESTOR.RELATIONS@CGHELLENIC.COM +30.210.6183 100 - _ o 6 » Cc Hellenic Bottling’Comp:
Slide 23: Long-term growth drivers
Long-term growth drivers Most known brands in the world Diverse geographic footprint with Low per capita consumption with strong emerging market exposure great potential to grow Solid track record of winning in the Strong focus on cost leadership and marketplace history of solid cash generation 23