Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- · BMV:KOF/UBL
Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- — Coca-Cola FEMSA — Investor Presentation (November 2005)
17 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s investor presentation, November 2005
Slide 1: Coca-Cola FEMSA November 2005
Coca-Cola FEMSA November 2005
Slide 2: Cautionary Statement
Cautionary Statement FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements relate to Coca-Cola FEMSA, S.A. de C.V. and subsidiaries (“KOF”) and their bus
Slide 3: KOF Evolution
KOF Evolution We have faced an evolutionary process since the integration of the new territories, increasing our operating complexity… 2002 LTM Sep 05 ∆ 02-05 Volume (MM UC) 620 1,876 + 203% Revenues (MM US$) 1,685 4,453 + 164% Assets (MM US$) 1,546 6,181 + 300% Plants 9 30 + 21 Distribution Facilit
Slide 4: Challenges resulting from the acquisition
Challenges resulting from the acquisition We acquired operations with a high level of deterioration, markets poorly executed and significant challenges… Mexico: • Contain B-brands expansion • Deal with a more competitive environment Central America: • Increase per capita consumption • Develop an int
Slide 5: Initiatives and Strategies Implemented
Initiatives and Strategies Implemented During this period we focused our efforts on finding strategic and operating solutions to address these challenges… KOF • Development and implementation of multi-segmentation models Operations • Implement sharing commercial knowledge and best practices replicat
Slide 6: Initiatives and Strategies Implemented
Initiatives and Strategies Implemented During this period we focused our efforts on finding strategic and operating solutions to address the challenges… Colombia • Consolidation of manufacturing network • Design a competitive porftolio within the CSD flavor segment, and strengthen brand Coca-Cola at
Slide 7: … and we have seen the results …
… and we have seen the results … 7
Slide 8: Fostering Market Development
Fostering Market Development Multisegmentation strategy has allowed us to increase per capita consumption in our territories, resulting in a sustainable volume growth path KOF CSDs Per Capita Consumption CAGR CAGR KOF CSDs Volume (8 oz Servings) 1.9% 3.4% (MM UC) 214 KOF 1,595 KOF 208 1,549 206 85 1
Slide 9: Successful Brand Portfolio Management
Successful Brand Porftolio Management The development of our Product and Package Portfolio has been crucial to foster demand, demonstrating our capability to handle successfully a sophisticated portfolio 2005 Volume 2004 2003 2001 2002 2000 1999 1997 1996 1995 1994 Previous 1994 9
Slide 10: KOF Brazil – A Successful Turnaround Story
KOF Brazil – A Successful Turnaround Story This experience provided us with the ability to take over the control of the presale function, developed the traditional channel, eliminating transshipment, improving our competitive position … Transshipment Traditional Channel % of Total Volume % of Total
Slide 11: KOF Colombia – A Story of Innovation
KOF Colombia – A Story of Innovation When we arrived in Colombia, we found an overdeveloped flavor segment and a very weak competitive position of KO Brands CSD Industry Mix Colas* Flavors 48% 52% Together with KO, we built a new flavor portfolio to increase our market share in this segment • Launch
Slide 12: KOF Colombia – A Successful Innovation
KOF Colombia – A Successful Innovation As a result, Crush has exceeded volume expectations and reached a relevant Market Share in the Flavor segment Crush Results >14 MM UC Acc. Volume Jan Feb Mar Apr May Jun Jul Aug Sep There have also been many initiatives to increase productivity and asset utiliz
Slide 13: Leveraging on a strong and flexible asset base…
Leveraging on a strong and flexible asset base… Completing the integration and streamlining our asset base, let us develop a more flexible and solid platform to foster growth Operating Efficiencies Indicators 2003 LTM 2005 Var 03-05 Plants 52 30 - 22 Distribution Facilities 284 237 - 47 Line Utiliza
Slide 14: …our initiatives are supporting our growth…
…our initiatives are supporting our growth… Our financial results in the first nine months of 2005 showed the results of our strategic initiatives implemented during the last three years intended to improve our market position and our competitive performance… Sales Volume Revenues EBITDA (MM UC) (MM
Slide 15: …remaining one of the most profitable bottlers globally…
…remaining one of the most profitable bottlers globally… Our profitability levels are one of the highest worldwide… LTM June 05 EBITDA Margin 25.7% 23.4% 22.4% 21.9% 20.5% 18.4% 16.0% 14.2% 13.5% KOF Arca Andina KOF Contal Amatil Hellenic PBG CCE Mexico Source: Analyst and Companies reports 15
Slide 16: …with a healthy and strong balance sheet…
…with a healthy and strong balance sheet… After the acquisition we have managed to reduce net debt by US$734 mm Cash KOF Net Debt 3,000 $2,828 330 $2,574 2,500 248 $2,319 $2,242 $2,413 $2,218 208 510 323 290 $2,012 2,000 248 1,500 2,498 2,326 1,000 2,111 1,919 1,928 1,903(2) 1,764 500 0 Exchange May
Slide 17: … creating sustainable value for our stakeholders
… creating sustainable value for our stakeholders Our stakeholders have seen significant increases in their investment during the last decade… Market Capitalization (Million US$) 4,801 4,387 4,099 3,188 2,755 2,860 2,503 2,551 1,888 1,556 1,372 1,170 879 1993 1994 1995 1996 1997 1998 1999 2000 2001
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