Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Investor Presentation (February 2017)
17 slides from Coca-cola Company (the)'s investor presentation, Feb 9, 2017
Slide 1: Financial Modeling Call
Financial Modeling Call February 9, 2017 Classified - Confidential
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expres
Slide 3: Topics for Discussion
Topics for Discussion • Scope for the Call • Timing of Structural Items • Structural Items P&L Impact
Slide 4: Our Focus for Today: Guidance on Structural Items
Our Focus for Today: Guidance on Structural Items 7% to 8% (3%) to (4%) (5%) to (6%) Approx. 3% Growth in Organic Revenues* Rate Change: 22.5% 24% Approx. $2B (1%) to (4%) $1.91 Start - 2016 EPS (Comparable) Underlying PBT Growth PBT Currency PBT Structural Items Effective Tax Rate Change Share Re
Slide 5: Timing of Transactions Impact
Timing of Transactions Impact 2016 2017 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q North America Refranchising* CCEAG Deconsolidation/ Formation of CCEP South Africa Bottlers/ Formation of CCBA China Refranchising* = Year over year impact = Transaction closing date 5 *Reflects estimated transaction cl
Slide 6: A Few Points to Keep in Mind
A Few Points to Keep in Mind Outlook represents our best estimates as of today Timing of refranchising transactions is subject to change Any changes in 2017 timing will have a corresponding 2018 impact “Geographic segments*” will not be a new reporting entity or segment 6 *“Geographic Segments" repr
Slide 7: 2017 Estimated Acquisitions, Divestitures, and Structural Items Impact: Top and Bottom Line
2017 Estimated Acquisitions, Divestitures, and Structural Items Impact: Top and Bottom Line CONSOLIDATED • Combination of Bottling Investments (“BIG”) reduction and corresponding benefit in Eliminations, partially Net Revenues (18%) to (19%)** offset by sub-bottling payments and intercompany profit
Slide 8: 2017 P&L Estimated Impact By Transaction
2017 P&L Estimated Impact By Transaction* BOTTLING INVESTMENTS GEOGRAPHIC SEGMENTS** EQUITY INTEREST Net Operating Net Operating INCOME INCOME Revenues Income Revenues Income CONSOLIDATED + Sub-Bottling Payments CCEP Sub-Bottling Bottling Divestitures + Intercompany Profit Eliminations CCBA Payments
Slide 9: 2017 Estimated Impact on Net Revenues by Segment
2017 Estimated Acquisitions, Divestitures, and Structural Items on Net Revenues: Impact by Segment 24% to 25% ↑ of BIG** ↓ CONSOLIDATED: (18%) to (19%) Start - 2016 NR (Comparable) BIG Structural Headwind Eliminations Geographic Segments Structrual Tailwind End - 2017 NR (Comp Adjusted for Structura
Slide 10: 2017 Estimated Structural Items on Income Before Tax: Impact by Segment
2017 Estimated Structural Items on Income Before Tax: Impact by Segment ↑ 1.3x to 1.5x the Total Impact** CONSOLIDATED: (5%) to (6%) Start - 2016 PBT (Comparable) BIG Structural Headwind Geographic Segments Structrual Tailwind End - 2017 PBT (Comp Adjusted for Structural 2016 Bottling Geographic 201
Slide 11: 2018 Estimated Acquisitions, Divestitures, and Structural Items Impact: Top and Bottom Line
2018 Estimated Acquisitions, Divestitures, and Structural Items Impact: Top and Bottom Line CONSOLIDATED • Combination of BIG reduction and cycling of intercompany profit elimination benefits in geographic segments*, Net Revenues (16%) to (17%)** partially offset by corresponding benefit in Eliminat
Slide 12: Other Considerations for 2018
Other Considerations for 2018 Currency • Low single-digit currency headwind on income before tax based on the current spot rates and including the impact of hedged positions Tax • Underlying effective tax rate expected to be 26% (does not include any impact from potential tax reform in the U.S. or a
Slide 13: 2017 Balance Sheet: Implications for Invested Capital
2017 Balance Sheet: Implications for Invested Capital 2015* Updates 2016* Considerations 2017 During 2016 Going Forward • CCR asset base • CCR asset base Invested $50B • CCEP $47B • Transaction with Capital Arca Continental • CCBA • China transaction *Invested capital is calculated based on the foll
Slide 14: Classified - Confidential
Classified - Confidential
Slide 15: Appendix: Outlook Summary – Full Year 2017
Appendix: Outlook Summary – Full Year 2017 Acquisitions, Divestitures, Underlying Currency Impact and Structural Items Comparable** Performance* Impact* Net Revenues Approx. +3% -1pp to -2pp -18pp to -19pp "Strong operating Operating Income performance" "Increasing interest rate Net Interest environ
Slide 16: Appendix: Outlook Summary – First Quarter 2017
Appendix: Outlook Summary – First Quarter 2017 Acquisitions, Divestitures, Currency Impact and Structural Items Impact* Net Revenues -1pp to -2pp -12pp to -13pp Income Before Tax -3pp to -4pp -1pp to -2pp Two fewer days when compared to first quarter 2016 Other Easter shift from first quarter in 201
Slide 17: Appendix: Outlook Summary – Full Year 2018
Appendix: Outlook Summary – Full Year 2018 Acquisitions, Divestitures, Currency Impact and Structural Items Comparable** Impact* Net Revenues -16pp to -17pp Low Single- Income Before Tax -1pp to -2pp Digit Headwind Underlying Effective 26% Tax Rate *Impact on net revenues is from acquisitions, dives
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