Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Q1 2014 Earnings Presentation
23 slides from Coca-Cola HBC's earnings presentation, 2014
Slide 1: First Quarter 2014 Results
FIRST QUARTER 2014" RESULTS
Slide 2: Forward-looking statements
2 Forward-looking statements Unless otherwise indicated, the condensed consolidated 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 document
Slide 3: First quarter highlights
First quarter highlights • Continuing market share gains • Increase in currency-neutral revenue per case for the 11th consecutive quarter • Volume decline in a seasonally small quarter • Easter phasing in Catholic countries • Value-accretive volume initiatives in Poland and the Czech Republic • Coun
Slide 4: Financial review
Financial review Michalis Imellos - CFO
Slide 5: Financial performance overview
Financial performance overview Q1’14 Q1’13 Change Volume (m u.c.) 410 427 -4% Net Sales Revenue (€m) 1,331 1,432 -7% Currency-neutral Net Sales Revenue per case 3.25 3.19 +2% Comparable Gross Profit Margin % 33.6% 33.7% -10bps Comparable OPEX % NSR 35.7% 33.8% +190bps Comparable EBIT (€m) (26.8) (1)
Slide 6: Eleventh consecutive quarter of growth in currency-neutral net sales revenue per case
Eleventh consecutive quarter of growth in currency-neutral net sales revenue per case Q1’14 Total CCH Volume -4% Currency-neutral revenue per case +2% Established Markets Volume -7% Currency-neutral revenue per case stable Developing Markets Volume -9% Currency-neutral revenue per case +6% Emerging
Slide 7: Improved input cost environment
Improved input cost environment • Currency-neutral input cost per case decreased by mid single digit • EU sugar costs decreased year-on-year • World sugar costs remained on a downward trend • PET resin costs decreased year-on-year • Marginally lower aluminium costs in the quarter 7
Slide 8: Improvement in expenses partially offset by one-off items
Improvement in expenses partially offset by one-off items Q1’14 Q1’ 13 Change Net Sales Revenue (€m) 1,331 1,432 -7% Comparable Operating Expenses (€ m) (475) (484) -2% Comparable OPEX as % of NSR 35.7% 33.8% +190bps Comparable EBIT Margin (%) -2.0% -0.1% -190bps Financial indicators on a comparable
Slide 9: Mixed segmental trends in comparable operating profit
Mixed segmental trends in comparable operating profit Q1 comparable EBIT Q1’14 Q1’13 million Euros Total CCH -26 -27 -1 Established -17 -6 +11 Developing 6 -9 -15 Emerging -14 -12 +3 Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedgi
Slide 10: Restructuring update
Restructuring update Q1 recap • We incurred €6.8m in pre-tax restructuring costs in the first quarter • Restructuring focus predominantly on Established markets FY 2014 targets • We remain on track to deliver our full-year target • Total pre-tax restructuring charges will amount to €35m in 2014 • Be
Slide 11: Free cash outflow in the quarter
Free cash outflow in the quarter Q1’14 Q1’13 Abs. in million Euros change EBITDA 65 83 (18) Change in Working Capital (87) (57) (30) Net Capital Expenditure (47) (52) +5 Free Cash Flow (81) (40) (41) * Differences in the absolute year-on-year change are due to rounding 11
Slide 12: Diversified financial profile
Diversified financial profile Debt maturity portfolio in million €800 Repaid Jan 2014 €600 €317 $400 January September November June 2014 2015 2016 2020 12
Slide 13: 2014 Financial outlook
2014 Financial outlook • Currency-neutral net sales revenue per case expected to grow year-on-year at a higher rate than 2013 • Currency-neutral input costs per case expected to decline by low single digits year-on-year • Adverse FX impact is now estimated to be in the region of €90m - €100m • Compa
Slide 14: Operational review and strategy
Operational review and strategy Dimitris Lois - CEO
Slide 15: Emerging markets continued to outperform
Emerging markets continued to outperform 427m 410m u.c. u.c. -7% -9% Stable Q1 ‘13 Established Developing Emerging Q1 ‘14 15
Slide 16: We continued to win in the marketplace
We continued to win in the marketplace 16
Slide 17: Juice, Water and Energy key category drivers for Q1
Juice, Water and Energy key category drivers for Q1 % y-o-y growth Q1 ‘14 Sparkling -6% Trademark Coca-Cola -7% Coca-Cola Zero 9% Juice 2% Multon 10% Water 1% Energy 2% Tea -3% 17
Slide 18: Established markets slow start to the year
Established markets slow start to the year Italy • Volume declined by low teens in the quarter • Challenging underlying macroeconomic and Trademark Coca-Cola RTD-Tea RTD Tea trading environment, Easter phasing and Coca-Cola Zero -13% +4% customer de-stocking -10% +4% Greece • Volume grew by mid sing
Slide 19: Developing markets continued challenging environment
Developing markets continued challenging environment Poland • Volume declined by high single digits • Easter phasing, challenging trading Trademark Coca-Cola RTD-Tea Water conditions and value-accretive volume Coca-Cola Zero -13% initiatives contributed to the decline +2% -11% +8% • Sparkling packag
Slide 20: Emerging markets stable performance
Emerging markets stable performance Russia • Volume grew by high single digits, cycling high single-digit growth Trademark RTD-Tea Water • Growth in all key categories with a marginal Coca-Cola Juice Water decline in Energy -13% +4% +3% +5% stable • Multon juice business grew by low double digits -
Slide 21: Looking ahead
Looking ahead • Prevailing economic and trading conditions are expected to remain unchanged in most of our territories • We have been consistently executing on our strategic priorities • We are mitigating the ongoing headwinds in some of our markets • Easter phasing and other one-off items are expec
Slide 22: Visit our website or contact Investor Relations
HELLENIC PLEASE VISIT OURWEBSITEAT: . : WWW.COCA-COLAHELLENIC.COM os OR CONTACT OUR INVESTOR RELATIONS TEAM INVESTOR.RELATIONS@GCHELLENIC. COM +30.210.6183 100 ig e °
Slide 23: Long-term growth drivers
Long-term growth drivers Most known brands in the world Diverse geographic footprint with Low per capita consumption with strong emerging market exposure great potential to grow Solid track record of winning in the Strong focus on cost leadership and marketplace history of solid cash generation 23