Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Q1 2020 Earnings Presentation
20 slides from Coca-cola Company (the)'s earnings presentation, Apr 21, 2020
Slide 1: First Quarter 2020 Earnings Call
FIRST QUARTER 2020 EARNINGS CALL APRIL 21, 2020
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: A Resounding Thank You
COCA-COLA FIRST QUARTER 2020 EARNINGS CALL SYMPATHY FOR ALL THOSE AFFECTED BY THE PANDEMIC A Resounding THANK YOU to… • The Healthcare Community • Our Employees • Our Bottling Partners • Our Customers • All Who Are Working to Keep Us Safe Grounded in Our Purpose to Refresh the World and Make a Diffe
Slide 4: Striving to Make a Difference in the Communities We Serve
COCA-COLA FIRST QUARTER 2020 EARNINGS CALL STRIVING TO MAKE A DIFFERENCE IN THE COMMUNITIES WE SERVE Some of the latest examples of contribution efforts: • The Coca-Cola Foundation has awarded $40 million in humanitarian aid, benefiting more than 17 million people in communities across the world. •
Slide 5: Agenda
AGENDA WHAT WE ARE LEARNING ACTIONS WE ARE TAKING EMERGING STRONGER FINANCIAL STRATEGY Q&A 5
Slide 6: Solid Momentum Prior to Coronavirus Pandemic
COCA-COLA FIRST QUARTER 2020 EARNINGS CALL SOLID MOMENTUM PRIOR TO CORONAVIRUS PANDEMIC Started the Year Strong Coronavirus Impacts • Sharp Declines in Away-From-Home Channels** (Represent ~50% of Our Business) +3% Volume Growth Through February* • Some Level of Pantry Loading in At-Home Channels Ga
Slide 7: We Are Seeing Three Phases Begin to Form
WHAT WE ARE LEARNING WE ARE SEEING THREE PHASES BEGIN TO FORM Phase I Phase II Phase III Outbreak Gradual Reopening “New Normal” • Heavy Lockdown (Sharp • Gradual Reopening of • Fear & Uncertainty Expected Declines in Away-From-Home) Away-From-Home Channels to Subside • Shelter-in-Place Mandates • S
Slide 8: Early Signs from China
WHAT WE ARE LEARNING EARLY SIGNS FROM CHINA Phase I Phase II Phase III Outbreak Gradual Reopening “New Normal” January to February March to Mid-April • Solid start to the year with • Strong focus on Core Brands +DD% volume growth (YTD Jan.) (TM Coke +DD%). ? • Strong sell-in for Chinese New • Upsurg
Slide 9: Leveraging Our Strengths, Moving with Speed
ACTIONS WE ARE TAKING LEVERAGING OUR STRENGTHS, MOVING WITH SPEED Global Workforce, Engaged & Aligned System, Driving the Strategy, Working Together Clear Path Forward Recalibrating Accordingly The Network Effect Strategic Alignment A Volume Scale & Winning to Value Investment Culture Growth Improve
Slide 10: Taking Swift Actions, Adapting to the Now
ACTIONS WE ARE TAKING TAKING SWIFT ACTIONS, ADAPTING TO THE “NOW” Focus Areas Strategic Actions Being Taken Maximize ROI Focus on Core Brands Minimize Out-of-Stocks Joint-Effort Recovery Programs (for Tradt’l Trade) with Retail Prioritize Key SKUs Reshape Innovation Pipeline Customers Maximize Visib
Slide 11: Taking Swift Actions, Preparing for the Future
ACTIONS WE ARE TAKING TAKING SWIFT ACTIONS, PREPARING FOR THE FUTURE Revenue Growth Systemwide Scaling New Management 2.0 Strategy Capabilities Route-to-Market Piloting D2C Platforms Optimization PAST Scaling B2B2Home Supply Chain Efficiencies Accelerating Alternative Comprehensive Routes-to-Market
Slide 12: Confidence in Emerging Stronger
EMERGING STRONGER CONFIDENCE IN EMERGING STRONGER • Purpose-Driven, Long-Term Focused Company • Leveraging Our Ability to Pivot Our Portfolio • Accelerated Capabilities to Drive Growth • Aligned & Engaged Bottling System • Transforming Our Growth Culture We Are Clear on What Needs to Be Done — Both
Slide 13: Key Topics for the Financial Strategy
FINANCIAL STRATEGY KEY TOPICS FOR THE FINANCIAL STRATEGY People 2020 Profitability & Cash Flow Capital Bottling Allocation System Post-COVID Readiness 13
Slide 14: Our Global Workforce Is a Critical Asset
FINANCIAL STRATEGY OUR GLOBAL WORKFORCE IS A CRITICAL ASSET • We are proud and thankful for the sacrifice, commitment, resilience and adaptability our workforce has shown. • The agility we are seeing across the world in this regard has been impressive and is opening the door to new ways of working.
Slide 15: Many Levers to Maximize Profit and Cash Flow
FINANCIAL STRATEGY MANY LEVERS TO MAXIMIZE PROFIT AND CASH FLOW Our Approach Key Actions • Changes to our brand/pack portfolio focus Protect Topline • Leveraging playbooks on affordability & value • Staying close to our consumers in a relevant way Reassess Marketing Spend • Remain disciplined to dem
Slide 16: Solid Liquidity Position and Clear Capital Allocation Priorities
FINANCIAL STRATEGY SOLID LIQUIDITY POSITION AND CLEAR CAPITAL ALLOCATION PRIORITIES Solid Liquidity Position & Clear Capital Balance Sheet Allocation Priorities 1 REINVEST IN THE BUSINESS • Solid progress in 2019 on free cash flow* Capital and Other Investments to Support generation. the Growth Agen
Slide 17: Global Bottling System Is Experienced and Taking Action
FINANCIAL STRATEGY GLOBAL BOTTLING SYSTEM IS EXPERIENCED AND TAKING ACTION • Battled-tested from previous macroeconomic challenges. • Immense admiration for all they are doing to stay close to their customers and communities. • Proactively taking steps to preserve cash, strengthen their balance shee
Slide 18: Current 2020 Outlook
FINANCIAL STRATEGY CURRENT 2020 OUTLOOK • Unable to provide an update to our full year 2020 financial outlook. • Second quarter will have a significant impact, but we believe it will be temporary. • Mid single-digit currency headwind on comparable revenues*. • High single-digit currency headwind on
Slide 19: Post COVID-19 Readiness
FINANCIAL STRATEGY POST COVID-19 READINESS • Adapting quickly to the current environment while best positioning ourselves to win in the future. • We are adjusting and doing things differently, challenging the status quo. • System is moving quickly, leveraging knowledge sharing and a networked organi
Slide 20: First Quarter 2020 Earnings Call
FIRST QUARTER 2020 EARNINGS CALL APRIL 21, 2020
The Coca-Cola Company — Q1 2020 Earnings Presentation on 6ix