Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — H1 2015 Earnings Presentation
23 slides from Coca-cola Hbc's earnings presentation, Aug 13, 2015
Slide 1: Results Presentation Half-Year 2015
RESULTS PRESENTATION HALF-YEAR 2015 13 August 2015
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: Half-year highlights
Half-year highlights ● Improving underlying volume trends ● Stable FX-neutral revenue per case, with pricing actions balancing deflationary pressures and affordability measures ● Net sales revenue decline due to FX headwinds ● Comparable EBIT up by 31% vs. prior year with 170bps margin expansion ● W
Slide 4: Financial review
Financial review Michalis Imellos Chief Financial Officer
Slide 5: Financial performance overview
Financial performance overview HY '15 HY '14 Ch. Volume (m u.c.) 1,007 970 4% Net Sales Revenue (€m) 3,151 3,183 -1% FX-neutral NSR per case (€) 3.13 3.13 - Comparable Gross Profit Margin 36.5% 35.8% 60 bps Comparable OPEX % NSR 29.5% 30.6% -110 bps Financial indicators on a comparable basis exclude
Slide 6: Financial performance overview
Financial performance overview HY '15 HY '14 Ch. Comparable EBIT (€m) 219 167 31% Comparable EBIT Margin 7.0% 5.2% 170 bps Comparable Net Profit (€m) 142 99 43% Comparable EPS (€) 0.389 0.271 44% Free Cash Flow (€m) 219.2 94.8 NM Financial indicators on a comparable basis exclude the recognition of
Slide 7: Stable FX-neutral net sales revenue per case
Stable FX-neutral net sales revenue per case HY '15 Total CCH Volume 3.8% FX-neutral revenue per case - Established Markets Volume -0.2% FX-neutral revenue per case -2.4% Developing Markets Volume 6.2% FX-neutral revenue per case -2.0% Emerging Markets Volume 5.4% FX-neutral revenue per case 4.3% 7
Slide 8: Favourable input cost environment
Favourable input cost environment ● FX-neutral input cost per case decreased by high single digits in the first half ● EU sugar costs continued to decrease year on year ● World sugar costs remained on a downward trend ● PET resin costs decreased significantly year on year 8
Slide 9: Cost management initiatives delivering results
Cost management initiatives delivering results HY '15 HY '14 Ch. Net Sales Revenue (€m) 3,151 3,183 -1% Comparable Operating Expenses (€m) 930 974 -4% Comparable OPEX as % of NSR 29.5% 30.6% -110 bps Comparable EBIT Margin 7.0% 5.2% 170 bps Financial indicators on a comparable basis exclude the reco
Slide 10: Operating leverage and input cost benefits delivering profitability
Operating leverage and input cost benefits delivering profitability HY comparable EBIT HY’15 HY ‘14 Total CCH €52m 219 167 Established €20m 84 64 Developing €22m 45 23 Emerging €11m 90 79 0 20 40 60 Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised
Slide 11: Restructuring update
Restructuring update ● We incurred €22m in pre-tax restructuring costs in the first half ● Focus of the restructuring efforts were mostly Established and Emerging segments and to a lesser extent Developing ● We also reiterate our FY guidance : – pre-tax restructuring charges to the amount of €45m fo
Slide 12: Solid free cash flow generation in the first half
Solid free cash flow generation in the first half €m HY '15 HY '14 Ch. EBITDA 370 348 22 Working Capital change -12 -89 77 Net Capital Expenditure -117 -140 23 Free Cash Flow 219 95 124 Differences in the absolute year-on-year change are due to rounding 12
Slide 13: Diversified financial profile
Diversified financial profile Debt maturity portfolio €800m €600m $400m 2015 2016 2020 September November June 13
Slide 14: Phasing impact of additional selling days
Phasing impact of additional selling days H1 H2 + - Comparable 4 add’l selling Comparable Comparable 4 less selling Comparable EBIT excl. days EBIT EBIT excl. days EBIT phasing phasing impact impact Not to scale 14
Slide 15: Operational review and strategy
Operational review and strategy Dimitris Lois Chief Executive Officer
Slide 16: Improving volume trends
Improving volume trends HY volume by segment +5% +6% - 970 m UC 1,007 m UC HY ’14 Established Developing Emerging HY ’15 16
Slide 17: Growth in all categories gained pace in the first half
Growth in all categories gained pace in the first half YoY growth HY’15 HY’14 Sparkling 3% -4% Trademark Coca-Cola 4% -3% Coca-Cola Zero 16% 8% Juice 18% 2% Multon brands 34% 6% Water 4% -2% Energy 9% 2% Tea -2% -8% 17
Slide 18: Established markets: Broadly stable volumes
Established markets Broadly stable volumes Trademark Coca-Cola Coca-Cola Zero - +5% + Water +3% Italy Greece Switzerland Volume decline Volume grew marginally Low single-digit continues to volume decline Volume Currency- Performance driven by moderate Still drinks Water volume up, stable neutral net
Slide 19: Developing markets: Evidence of turnaround
Developing markets Evidence of turnaround Trademark Coca-Cola Coca-Cola Zero +9% +25% Water +5% Poland Czech Republic Hungary Volume up by high Volume growth by high Volume up by high single digits single digits single digits Volume Currency- Volume increases in Good performance All categories grew
Slide 20: Emerging markets: Very good performance in a volatile environment
Emerging markets Very good performance in a volatile environment Trademark Juice Coca-Cola +27% +6% Water +4% Russia Nigeria Romania Volume decline by low Robust growth Volume growth by single digits in a volatile momentum with mid- high single digits Volume Currency- year teens volume growth Good p
Slide 21: Looking ahead
Looking ahead We remain confident that 2015 will be a year of volume growth and progress on margins based on our expectations for ● volume growth in all segments ● a modest improvement in FX-neutral net sales revenue per case in the full year ● continued benign input costs ● reduction in operating e
Slide 22: 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 23: Clear strategy Achieving results
Clear strategy Achieving results Diverse geographic Most known footprint with strong brands in the emerging market world exposure Low per capita Consistent growth consumption with in currency-neutral potential for revenue per case growth Solid track record Strong focus on cost of winning in the lead