Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Q4 2020 Earnings Presentation
23 slides from Coca-cola Company (the)'s earnings presentation, Feb 10, 2021
Slide 1: Fourth Quarter 2020 Earnings Call
FOURTH QUARTER 2020 EARNINGS CALL February 10, 2021
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: Resurgence in the virus drove renewed lockdowns in Q4
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL RESURGENCE IN THE VIRUS DROVE RENEWED LOCKDOWNS IN Q4 Two Key Factors Volume Performance Oct-Nov 20 Dec 20 YTD 21 1 Level of Lockdown in any Given Market Low Single-Digit % Decline 2 Size of Away-From-Home Mid Single-Digit Mid Single-Digit % Decline % Decl
Slide 4: Global progress remained mixed in Q4
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL GLOBAL PROGRESS REMAINED MIXED IN Q4 EMEA (4%)* Showed resilience despite varying levels of lockdown Dispersion between developed and developing markets Western Europe most affected; Turkey & West Africa showed positive momentum Asia Pacific (4%)* North Am
Slide 5: Value share performance continues to be impacted by channel mix
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL VALUE SHARE PERFORMANCE CONTINUES TO BE IMPACTED BY CHANNEL MIX • Poised to emerge stronger in both channels • Underlying Share in Away-From-Home • Supporting customers • Ensuring seamless • Underlying Share in At-Home execution from a supply chain perspec
Slide 6: Likely to see some level of asynchronous recovery in 2021
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL LIKELY TO SEE SOME LEVEL OF ASYNCHRONOUS RECOVERY IN 2021 External Factors Coca-Cola System Vaccine Adjust to near-term Distribution uncertainties Push forward on Macroeconomic strategic initiatives to Factors emerge stronger RECOVERY 6
Slide 7: Progress against strategic initiatives
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL PROGRESS AGAINST STRATEGIC INITIATIVES Networked Organization Portfolio Optimization Clear decision rights and accountability Streamlined portfolio drives allocation of ✓ ✓ investments to greatest opportunities Operating Units and Global Category Targeted
Slide 8: Focusing attention & resources on what we do best
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL FOCUSING ATTENTION & RESOURCES ON WHAT WE DO BEST Brand Building Innovation Great brand building begins with deep ✓ consumer insights that converts into ✓ 2021 Innovation Pipeline superior quality products Coca-Cola Zero Authentic Tea Sugar 2.0 House expan
Slide 9: Global pandemic has expedited shift to a digital world
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL GLOBAL PANDEMIC HAS EXPEDITED SHIFT TO A DIGITAL WORLD Digitizing the enterprise for several years Stepped up our organization to skillfully execute both online and offline Leveraging existing pockets of excellence across the globe 1 myCoke B2B Platform 2
Slide 10: ESG work is embedded in our business and the value we create
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL ESG WORK IS EMBEDDED IN OUR BUSINESS AND THE VALUE WE CREATE Racial Equity World Without Waste Women Global Social Justice Framework LISTENING • Set a new target to reduce • Accomplished goal to virgin PET use – cumulative 3 empower 5 million women by LEAD
Slide 11: Confident about successfully navigating dynamic environment in 2021
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL CONFIDENT ABOUT SUCCESSFULLY NAVIGATING DYNAMIC ENVIRONMENT IN 2021 Five Clear Objectives Strong Win More Gain Market System Consumers Share Economics Strengthen Equip the Stakeholder Organization Impact to Win Staying true to our commitment to consumer ce
Slide 12: Key messages on tax dispute
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL KEY MESSAGES ON TAX DISPUTE • We disagree with the U.S. Tax Court Opinion and will vigorously defend our position • We have consulted with external advisors and undergone detailed analysis in arriving at our current position and determining next steps • Th
Slide 13: Remain steadfast in capital allocation priorities
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL REMAIN STEADFAST IN CAPITAL ALLOCATION PRIORITIES • Ample flexibility 1 REINVEST IN THE BUSINESS Capital and Other Investments to Support between our cash the Growth Agenda generation and balance 2 sheet CONTINUE TO GROW THE DIVIDEND Continue to Grow Divid
Slide 14: Fourth quarter performance
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL FOURTH QUARTER PERFORMANCE Quarterly Results Key Headlines • Sequential improvement in volume versus the prior quarter Unit Case Volume (3%) • October and November volumes were down low single digits; saw a slowdown in December due to a resurgence in the v
Slide 15: Outlook
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL OUTLOOK 2021 FULL YEAR GUIDANCE CONSIDERATIONS • Expect currency to be a tailwind; +2%-3% on comparable net revenues* and +3%-4% on comparable EPS* Organic Revenue* High Single-Digit % Growth • Calendar shift will impact the quarterly cadence; five additio
Slide 16: In summary
COCA-COLA FOURTH QUARTER 2020 EARNINGS CALL IN SUMMARY • We are well on our way to emerging stronger • Objectives and priorities we set during the peak of the crisis are driving our ability to execute through the near-term volatility • Focus and flexibility of the networked model to drive the entire
Slide 17: Fourth Quarter 2020 Earnings Call
FOURTH QUARTER 2020 EARNINGS CALL February 10, 2021
Slide 18: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Revenues: Three Months Ended December 31, 2020 Reported (GAAP) $ 8,611 Items Impacting Comparability: Other Items (8) Comparable (Non-GAAP) $ 8,603 Three Months Ended
Slide 19: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Diluted net income per share: Three Months Ended December 31, 2020 Reported (GAAP) $ 0.34 Items Impacting Comparability: Asset Impairments 0.06 Strategic Realignment 0.02 Productivity and Reinve
Slide 20: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Free Cash Flow: Year Ended Year Ended December 31, 2020 December 31, 2019 % Change Net Cash Provided by Operating Activities (GAAP) $ 9,844 $ 10,471 (6) Purchases of Property, Plan
Slide 21: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Gross Margin: Three Months Ended Three Months Ended Basis Point Growth December 31, 2020 December 31, 2019 (Decline) Reported Gross Margin (GAAP) 58.45% 60.67% (222) Items Impacting Comparabilit
Slide 22: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Operating Margin: Three Months Ended Three Months Ended Basis Point Growth December 31, 2020 December 31, 2019 Reported Operating Margin (GAAP) 27.15% 23.87% 328 Items Impacting Comparability (N
Slide 23: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Projected 2021 Free Cash Flow (Non-GAAP) (In Billions): Year Ending December 31, 2021 Net Cash Provided by Operating Activities (GAAP) $ 10.0 Purchases of Property, Plant and Equipment (GAAP) (1
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