Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Coca-Cola Hellenic — 9th Deutsche Bank Global Consumer Conference 2012
45 slides from Coca-Cola HBC's conference presentation, June 2012
Slide 1: 9th Deutsche Bank Global Consumer Conference
9th Deutsche Bank Global Consumer Conference 19-21 June 2012 1
Slide 2: Disclaimer
Disclaimer The information contained and their effect on consumer with the US Securities and herein includes forward- confidence and disposable Exchange Commission. looking statements which income, the effect of As a result, our actual are based on current acquisitions to our business results could
Slide 3: Hellenic is one of the largest Coca-Cola bottlers globally
Hellenic is one of the largest Coca- Coca-Cola bottlers globally Volume 2.1bn uc Sales $9.0bn Volume 1.4bn uc Sales $8.3bn Volume 0.8bn uc Sales $1.9bn Coca-Cola Hellenic Coca-Cola Enterprises Volume 0.6bn uc 2011 Sales $5.0bn Coca-Cola Femsa Volume 2.6bn uc Coca-Cola Amatil Sales $9.1bn Coca-Cola I
Slide 4: The Coca-Cola System: Partners in growth
The Coca- Coca-Cola System: Partners in growth Brand ownership Bottling production Concentrate supply Leveraging Sales distribution Brand development the unique Customer management Consumer marketing strength of Channel development Creating demand the System In-outlet execution Demand Fulfillment In
Slide 5: Shareholder structure
Shareholder structure Kar-Tess Holding S.A. 23% Free float 54% The Coca-Cola Company 23% Bottlers’ agreements in place for each of the countries in which we operate until December 2013, with the option to request a further 10 year extension to 2023 5
Slide 6: A diverse and balanced country portfolio
A diverse and balanced country portfolio Population: 78 mio Population: 401 mio Population: 89 mio 2011 2011 Market Split Volume unit cases 34% 19% 47% Total = 2,083 M U.C. Net sales revenue 41% 17% 42% Total = €6,854 M Comparable EBIT 47% 14% 39% Total = €541 M 6
Slide 7: Our extensive territorial reach offers a balanced volume profile
Our extensive territorial reach offers a balanced volume profile 2011 volume by country Other emerging 6% Russia Other developing 16% 7% Other established 8% Italy 15% Serbia 4% Switzerland 4% Hungary 4% Nigeria Ukraine 9% 5% Greece Poland 6% Romania 8% 8% 7
Slide 8: Diverse geographical footprint offering attractive growth potential
We have a diverse geographical footprint offering attractive growth potential 2011 Total sparkling category servings per capita 612 465 427 352 352 324 Established 311 310 287 293 245 216 225 Developing 206 193 196 178 Emerging 175 124 128 38 8
Slide 9: Meeting consumer needs with a diverse product portfolio
Meeting consumer needs with a diverse product portfolio Other Still Still 1% beverages Water 4% Tea 6% Juice 5% 8% Juice 9% Water 2001 20% 2011 1.1 bn u.c 2.1 bn u.c 1.2bn u.c Low-calorie Sparkling sparkling beverages beverages 90% Sparkling 6% beverages 60% Includes 100% of Multon and Fresh & Co vo
Slide 10: External environment remains challenging
External environment remains challenging Volatile Austerity economic measures / conditions additional across territories government taxes Weak consumer Continued confidence rise of key and significant affordability commodity issues for costs shoppers 10
Slide 11: Play to Win
Play to Win 11
Slide 12: A clear framework to achieve our strategic priorities
We have a clear framework to achieve our strategic priorities 12
Slide 13: The 4C's are key elements in our strategy execution
The 4C’s are key elements in our strategy execution Consumer Customer Cost Leadership Community Trust Relevance Preference • Brand Priorities • Joint Value • Infrastructure • Consumer Based (Purpose driven Creation optimization Marketing Brands) • Customer Care • Cost Ownership • Social Equity • OBP
Slide 14: Consumer relevance
Consumer relevance 14
Slide 15: We have clear category priorities
We have clear category priorities Incremental Volume and Value by total Category: 2011-2020 (Coca-Cola Hellenic territories only) % of incremental volume 40% % of incremental value 30% 20% 10% 0% Sparkling Water Juices RTD-Tea Energy Sports Drinks Source: Canadean, Company estimates Note: Excludes A
Slide 16: Sparkling Beverages Drive Growth
…and purpose driven brands Sparkling Beverages Drive Growth Nestea • Selective approach • Leverage Trademark Coca-Cola with • Focus on increasing focus on Regular and Zero market penetration and • Increase per capita consumption trial • Further grow Fanta, focusing on • Bring new people to the orang
Slide 17: Capitalising on System assets
Capitalising on System assets OFFICIAL SPONSOR Olympic Torch Relay 17
Slide 18: Our OBPPC strategy is a key tool of revenue growth management
Our OBPPC strategy is a key tool of revenue growth management The 3 key objectives: Defines the right price point by package and product targeting different consumption More shoppers 1 INCIDENCE occasions to increase category revenue More often 2 FREQUENCY Occasion More volume Brand per purchase 3 U
Slide 19: Customer preference
Customer preference 19
Slide 20: Customer-Centricity
Customer- Customer-Centricity Our Customer-centric vision: “Coca-Cola Hellenic is easy to do business with, gets everything right the first time, adds value on every occasion, and is my # 1 supplier of choice” choice PA&C = Public Affairs & Communications 20 EIT = Enterprise Information Technology
Slide 21: Driving key initiatives to enhance collaboration and value
We are driving 4 key initiatives to enhance collaboration and value Collaboration Execution An advanced program A 360o process for and process to measuring and collaborate with improving in-market Joint Value customers and create Right Execution execution Creation joint value Daily Enabler An organi
Slide 22: Cost leadership
Cost leadership 22
Slide 23: Optimising our cost base to enhance competitiveness
Optimising our cost base to enhance competitiveness Infrastructure optimisation Warehouse/ Logisitics Manage excellence OPEX and Working Capital 23
Slide 24: SAP is a key enabler for enhancing capabilities
SAP is a key enabler for enhancing capabilities and improving efficiencies Manufacturing Logistics Commercial capabilities • Increase in service line • Truck usage optimisation • Customer segmentation efficiencies • Profitability at outlet/customer • Reduced manufacturing • Improved product level ov
Slide 25: Moving transactional processes to shared services
Moving transactional processes to shared services… Benefits: • Leverage SAP benefits • Improve productivity • Enhance business support • Improve internal control / governance • Enable local management to focus on value added activities Roll Out: • Live in 5 countries for key Finance and HR functions
Slide 26: Strong and sustained cash flow generation
Strong and sustained cash flow generation Guidance 1.50 In 2009-2011 we 1.45 generated 1.40 1.36 1.35 €1.5bn cash flow, exceeding our guidance of €1.2bn 0.78 Capital Expenditure Guidance 2010-2012: €1.40bn 2011-2013: €1.35bn 2005-2007 2008-2010 2009-2011 2010-2012 2011-2013 2012-2014 2012-2014: €1.4
Slide 27: Conservative financial profile
Conservative financial profile Credit ratings Net debt/EBITDA • Moody’s: L/T Baa1, S/T P2, negative outlook • S&P: L/T BBB+, S/T A2, Credit Watch negative Gearing ratio Diversified maturity profile 600 500 500 500 400 2012 2013 2014 2015 2016 2016 Eur Revolving Credit Facility USD Notes: Gearing rat
Slide 28: Solid track record of returning value to shareholders
Solid track record of returning value to shareholders In million Euros In the last 11 years we have returned to our shareholders total cash of approximately €1.9 billion 28
Slide 29: Community trust
Community trust 29
Slide 30: An industry leader in sustainability
An industry leader in sustainability Member 2010/11 For a fourth consecutive year Coca-Cola Hellenic is listed on the Coca-Cola Hellenic is included in the FTSE4Good index, which recognises Dow Jones Sustainability Indexes (DJSI) the performance of companies – both the Dow Jones Sustainability that
Slide 31: Making good progress against our sustainability goals
Making good progress against our sustainability goals Water use ratio Landfilled waste l/lpb g/lpb 2.59 3.0 3.0 2.48 2.40 1.9 2.30 1.5 2.24 - 13% 1.2 - 60% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Energy ratio Waste ratio Mj /lpb Gr/lpb 12.4 12.9 0.60 11.2 0.59 10.2 9.4 -24% 0.58 - 3% 0.57
Slide 32: In summary
In summary 32
Slide 33: Key strategic priorities in 2012
Key strategic priorities in 2012 Cost Continue to Revenue Leadership / win in the Growth Free Cash marketplace Management Flow Generation 33
Slide 34: Coca-Cola Hellenic remains well positioned for sustainable success
Coca- Coca-Cola Hellenic remains well positioned for sustainable success • Strong track record of winning in the marketplace with sparkling share gains in 25 out of 28 countries in 2011 • Continuing to invest behind our brands • Commercial strategy focused on driving value ahead of volume • Focused
Slide 35: Coca-Cola Hellenic – ADR Program
Coca-Cola Hellenic – ADR Program Coca-Cola Hellenic ADRs trade under the following: Ticker CCH US Trading platform NYSE ADR : ordinary share ration 1:1 SEDOL 2020200 ADR ISIN US1912EP1042 Depositary Bank Citibank, N.A. Benefits of ADRs to US investors: • ADRs give access to cross-border market liqui
Slide 36: For further information 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 36
Slide 37: Appendix: Latest Financials
Appendix: Latest Financials 37
Slide 38: Q1 2012: P&L highlights (reported)
Q1 2012: P&L highlights (reported) 2012 vs EURO (million) Q1 2012 Q1 2011 2011 Volume (million u.c.) 425.5 433.8 -2% Net Sales Revenue 1,436.5 1,416.1 1% Gross Profit 496.4 521.6 -5% Operating Expenses (509.2) (504.0) 1% Operating (Loss) /Profit (12.8) 17.6 n/a Net Loss (28.4) (8.9) > 100% EBITDA 82
Slide 39: Q1 2012: P&L highlights (comparable)
Q1 2012: P&L highlights (comparable) 2012 vs EURO (million) Q1 2012 Q1 2011 2011 Volume (million u.c.) 425.5 433.8 -2% Net Sales Revenue 1,436.5 1,416.1 1% Gross Profit 494.2 521.6 -5% Operating Expenses (495.8) (493.9) 0% Operating Profit (EBIT) (1.6) 27.7 n/a Net Profit (18.6) (1.0) > 100% EBITDA
Slide 40: Q1 2012: Gross Profit (reported)
Q1 2012: Gross Profit (reported) 2012 vs EURO (million) Q1 2012 Q1 2011 2011 Net Sales Revenue 1,436.5 1,416.1 1% Cost of Sales (940.1) (894.5) 5% Gross Profit 496.4 521.6 -5% • Net sales revenue per unit case was up by 11 cents (3%) vs Q1 2011 • Cost of sales per unit case increased by 15 cents (7%
Slide 41: Q1 2012: Opex per unit case (comparable)
Q1 2012: Opex per unit case (comparable) 2012 vs EURO Q1 2012 Q1 2011 2011 Sales 0.46 0.44 5% Marketing 0.11 0.12 -4% Warehouse / Distribution 0.34 0.33 3% Administration 0.25 0.25 0% Total operating 1.17 1.14 2% expenses (*) Financial indicators on a comparable basis exclude the recognition of rest
Slide 42: Q1 2012: Net Profit (reported)
Q1 2012: Net Profit (reported) 2012 vs EURO (million) Q1 2012 Q1 2011 2011 Operating (Loss) / Profit (12.8) 17.6 n/a Finance costs & other (21.6) (19.4) 11% Loss before tax (34.4) (1.8) > 100% Tax 6.1 (6.1) n/a Minority interests (0.1) (1.0) > 100% Net Loss (28.4) (8.9) > 100% Losses per Share (in e
Slide 43: Q1 2012: Net Profit (comparable)
Q1 2012: Net Profit (comparable) 2012 vs EURO (million) Q1 2012 Q1 2011 2011 Operating (Loss) / Profit (1.6) 27.7 n/a Finance costs & other (21.6) (19.4) 11% Profit before tax (23.2) 8.3 n/a Tax 4.7 (8.3) n/a Minority interests (0.1) (1.0) > 100% Net Loss (18.6) (1.0) > 100% Losses per Share (in eur
Slide 44: Q1 2012: Free Cash Flow
Q1 2012: 2012: Free Cash Flow 2012 vs 2011 EURO (million) Q1 2012 Q1 2011 Adjusted EBITDA* 82.6 113.1 (30.5) Change in Working Capital (22.8) (85.9) 63.1 Tax paid (21.4) (30.8) 9.4 (Gain)/ Loss on asset disp. 0.4 (1.1) 1.5 Cash Flow from operations 38.8 (4.7) 43.5 Net capital expenditure (70.9) (62.
Slide 45: Q1 2012: Balance sheet
Q1 2012: Balance sheet EURO (million) 30-Mar-12 31-Dec-11 Total non-current assets 5,263.0 5,185.1 Inventories 544.3 451.5 Trade and other receivables 1,088.0 1,122.4 Cash and equivalents 397.3 476.1 Total current assets 2,029.6 2,050.0 Total assets 7,292.6 7,235.1 Short-term borrowings 324.7 321.5
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