Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — IPO Roadshow (February 2013)
39 slides from Coca-Cola HBC's IPO roadshow presentation, February 2013
Slide 1: UK-US Roadshow Presentation
UK- US Roadshow Presentation February 2013 1
Slide 2: Disclaimer
Disclaimer Disclaimer This document is an advertisement and not a prospectus and investors should not subscribe for or purchase any transferable securities referred to in this document except on the basis of information contained in a prospectus or offering circular prepared for that purpose and pub
Slide 3: Disclaimer
Disclaimer The Presentation is being provided for informational purposes only and is subject to updating, revision, verification and amendment. The information and opinions contained or discussed in this Presentation do not purport to be full or complete and do not constitute investment advice. No r
Slide 4: 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 5: 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 6: Shareholder structure
Shareholder structure Kar-Tess Holding 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 commitment by The Coca-Cola Company to renew these agreements until 2023 6
Slide 7: A diverse and balanced country portfolio
A diverse and balanced country portfolio Population: 78 mio Population: 401 mio Population: 89 mio 2012 2012 Market Split Volume unit cases 33% 19% 48% Total = 2,085 M UC Net sales revenue 39% 16% 45% Total = €7,045 M Comparable EBIT * 35% 6% 59% Total = €453 M (*) Financial indicators on a comparab
Slide 8: Our extensive territorial reach offers a balanced volume profile
Our extensive territorial reach offers a balanced volume profile 2012 volume by country Other emerging 6% Other developing 7% Russia 18% Other established 8% Switzerland 4% Italy 15% Hungary 4% Serbia & Montenegro 4% Ukraine 4% Nigeria Greece 9% 5% Romania Poland 8% 8% 8
Slide 9: 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 9 Source: The Coca-Cola Company
Slide 10: 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% 6% Juice 9% Water 2001 20% 2012 1.1 bn u.c 2.1 bn u.c 1.2bn u.c Low-calorie Sparkling sparkling beverages beverages 90% Regular 6% sparkling beverages 62% 10
Slide 11: Play to Win
Play to Win 11
Slide 12: We have 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: Sparkling Beverages Drive Growth
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 orange fla
Slide 16: 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 17: Customer preference
Customer preference 17
Slide 18: 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 „The Customer at the Heart of everything we do! „ 18
Slide 19: Collaboration and Execution
Creating a value- value-based mindset that leads to better business results Collaboration An advanced program and process to collaborate with Joint Value customers and create Creation joint value Execution A 360o process for measuring and improving in-market Right Execution execution Daily 19
Slide 20: Cost leadership
Cost leadership 20
Slide 21: FY 2012 cost structure
FY 2012 cost structure Marketing; 10% Overheads; Depreciation; 18% 4% Concentrate; Sales; 38% 34% Administration; Other raw 21% materials; 16% Sugar; 14% Warehouses & Distribution; PET; 9% 31% Aluminium; 5% 21
Slide 22: Optimising our cost base to enhance competitiveness
Optimising our cost base to enhance competitiveness Infrastructure optimisation Warehouse/ Logisitics Manage excellence OPEX and Working Capital SAP is a key enabler for enhancing capabilities and improving efficiencies 22
Slide 23: 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 19 countries for key Finance and HR functions
Slide 24: Community trust
Community trust 24
Slide 25: An industry leader in sustainability
An industry leader in sustainability Coca-Cola Hellenic is listed on the FTSE4Good index, Member 2010/11 which recognises the For a fourth consecutive year Coca-Cola Hellenic is performance of companies included in the Dow Jones Sustainability Indexes that meet globally (DJSI) – both the Dow Jones S
Slide 26: Cash – Financing & Governance
Cash – Financing & Governance 26
Slide 27: Strong and sustainable cash flow generation
Strong and sustainable cash flow generation We expect to generate Free Cash Flow €1.3bn cumulative 546 537 427 free cash flow in the 262 341 3yr period ending December 2015. 2008 2009 2010 2011 2012 Capital Expenditure Guidance Free Cash Flow in Million Euros 5.5%-6.5% of Net Sales Revenue over the
Slide 28: Conservative financial profile
Conservative financial profile Credit ratings Net debt/EBITDA • Moody’s: L/T Baa1, S/T P2, negative outlook 2.1 2.1 2.0 2.1 1.7 • S&P: L/T BBB+, S/T A2, credit watch negative 2008 2009 2010 2011 2012 Gearing ratio Diversified bond maturity profile 46% € 600 42% 38% 38% 36% $ 500 € 500 $ 400 2008 200
Slide 29: Solid track record of returning value to shareholders
Solid track record of returning value to shareholders In the last 12 years we have returned to our shareholders, whether in the form of dividends or capital returns, total cash of approximately €2.0 billion In million Euros 29
Slide 30: Corporate governance
Corporate governance ADR program on NYSE since 2002 Full SOX compliance history Enhancement of corporate governance upon settlement of the share exchange offers through: 1. appointment of an additional independent non-executive director 2. nominations committee, majority members independent 3. no sh
Slide 31: In summary
In summary 31
Slide 32: Key strategic priorities in 2013
Key strategic priorities in 2013 Cost Continue to Revenue Leadership / win in the Growth Free Cash marketplace Management Flow Generation 32
Slide 33: Long-term growth drivers
Long- Long-term growth drivers Most known brand in the Low per capita world! consumption offers growth prospects. Diverse geographic footprint with strong emerging market exposure Strong focus on Solid track cost leadership record of and cash winning in the generation marketplace 33
Slide 34: 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 34
Slide 35: Appendix: Full Year 2012 Financials
Appendix: Full Year 2012 Financials 35
Slide 36: Full Year 2012: P&L highlights (comparable)
Full Year 2012: P&L highlights (comparable) Full Year Full Year 2012 vs EURO (million) 2012 2011 2011 Volume (million u.c.) 2,084.7 2,087.4 0% Net Sales Revenue 7,044.7 6,824.3 3% Cost of sales (4,517.7) (4,253.3) 6% Gross Profit 2,527.0 2,571.0 -2% Operating Expenses (2,073.9) (2,048.2) 1% Operatin
Slide 37: Full Year 2012: Net Profit (comparable)
Full Year 2012: Net Profit (comparable) Full Year Full Year 2012 vs EURO (million) 2012 2011 2011 Operating profit (EBIT) 453.1 522.8 -13% Finance costs & other (79.1) (85.8) -8% Profit before tax 374.0 437.0 -14% Tax (85.5) (110.0) -22% Minority interests (3.0) (1.3) >100% Net Profit 285.5 325.7 -1
Slide 38: Full Year 2012: Free Cash Flow
Full Year 2012: Free Cash Flow 2012 vs Full Year Full Year 2011 EURO (million) 2012 2011 Adjusted EBITDA* 757.6 852.2 (94.6) Cash from Working Capital 84.1 61.3 22.8 Tax paid (95.0) (88.4) (6.6) Loss / (Gain) on asset disp. 6.9 3.2 3.7 Cash Flow from operations 753.6 828.3 (74.7) Net capital expendi
Slide 39: Full Year 2012: Balance sheet
Full Year 2012: Balance sheet EURO (million) 31-Dec-12 31-Dec-11 Total non-current assets 5,279.3 5,228.4 Inventories 458.0 447.7 Trade and other receivables 1,073.7 1,120.0 Cash and equivalents 439.1 447.4 Total current assets 1,970.8 2,015.1 Total assets 7,250.1 7,243.5 Short-term borrowings 555.0