Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Q2 2020 Earnings Presentation
22 slides from Coca-cola Company (the)'s earnings presentation, Jul 21, 2020
Slide 1: Second Quarter 2020 Earnings Call
SECOND QUARTER 2020 EARNINGS CALL JULY 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: Sympathy for All Those Affected by the Pandemic
COCA-COLA SECOND 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 Diff
Slide 4: Performance Was Driven by Local Market Dynamics
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL PERFORMANCE WAS DRIVEN BY LOCAL MARKET DYNAMICS Two Key Factors Sequential Improvement Levels of Lockdown 1 Level of Lockdown in any Given Market Unit Case Volume 2 Size of Away-From-Home Business in that Market April June We Expect this Correlation to Con
Slide 5: Share Performance Impacted by Channel Mix
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL SHARE PERFORMANCE IMPACTED BY CHANNEL MIX • Positive underlying performance driven by strong share gains in at-home channels • More than offset by negative channel mix due to pressure in away-from-home channels Underlying Channel Mix • As on-premise begins
Slide 6: Committed to Emerging Stronger from the Crisis
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL COMMITTED TO EMERGING STRONGER FROM THE CRISIS Five Clear Objectives WIN MORE GAIN MARKET STRONG CONSUMERS SHARE SYSTEM ECONOMICS STRENGTHEN EQUIP THE STAKEHOLDER ORGANIZATION IMPACT TO WIN Maintaining Focus and Flexibility to Successfully Manage Through t
Slide 7: Uncertainty Remains, But Our Strategy Is Essential
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL UNCERTAINTY REMAINS, BUT OUR STRATEGY IS ESSENTIAL 1 Uncertainty of the Macroeconomic Environment 2 ‘Beverages for Life’ Remains Essential ✓ ? Commercial Beverage Industry Will Remain Vibrant ✓ Consumer Remains at the Heart of Everything We Do ✓ Consumers
Slide 8: Accelerating the Strategy Already in Motion
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL ACCELERATING THE STRATEGY ALREADY IN MOTION Five Priorities Optimized portfolio of strong global, 1 Topline regional and scaled local brands 2 Disciplined innovation framework and increased marketing effectiveness 3 Stepped-up RGM and execution capabilitie
Slide 9: Sharp Focus on Optimizing the Portfolio
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL SHARP FOCUS ON OPTIMIZING THE PORTFOLIO <50% = ~98% Global, Regional, Company Revenue Local Brands ~400 MASTER BRANDS >50% = ~2% Single-Country Company Revenue Brands Prioritizing Fewer “Bigger and Stronger” Brands, While Doing a Better Job Nurturing “Smal
Slide 10: Disciplined Innovation Framework and Increased Marketing Effectiveness & Efficiency
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL DISCIPLINED INNOVATION FRAMEWORK AND INCREASED MARKETING EFFECTIVENESS & EFFICIENCY Improvement Opportunities Way Forward Innovation • Innovation increased ~150% since 2015 • Tail has increased along the way Lead with Support with Only Critical • Focus on
Slide 11: Deploy Our Capabilities in RGM and Execution
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL DEPLOY OUR CAPABILITIES IN RGM AND EXECUTION – ADAPT TO CHANGING CHANNEL DYNAMICS Optimal Price/Pack Architecture Segmented & Surgical Approach Revenue Growth Management Occasion Affordability & Premiumization Channel Market Execution Capturing Omni-Channe
Slide 12: Collaboration Across the System Has Been Paramount
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL COLLABORATION ACROSS THE SYSTEM HAS BEEN PARAMOUNT • Held global and regional system leadership meetings with high engagement • Will continue increased engagement and sharing of best practices post-pandemic • Unlocking opportunity for synergies across supp
Slide 13: Organizational Structure Follows the Strategy
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL ORGANIZATIONAL STRUCTURE FOLLOWS THE STRATEGY • Focused on positioning the organization to win • Acting with a growth mindset continues to be essential • Moving toward a more networked model, improving our agility and maximizing scale • As the pandemic act
Slide 14: Second Quarter Performance
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL SECOND QUARTER PERFORMANCE Quarterly Results Key Headlines Sequential improvement in volume during quarter Unit Case Volume -16% Lag in shipments due to cycling and bottler stock rationalization from inventory build in Q1 -26% Organic Revenues* (-4% Price/
Slide 15: Current 2020 Outlook
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL CURRENT 2020 OUTLOOK • Unable to provide full year 2020 financial outlook • Believe the Second Quarter will be the most impacted of the year • Topline to continue to correlate to the level of mobility and the health of the away-from- home channels • Channe
Slide 16: Translating Topline Growth into Value Creation
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL TRANSLATING TOPLINE GROWTH INTO VALUE CREATION 1 Optimizing the Shape of the P&L and Balance Sheet 2 Unlocking Opportunities to Cultivate Efficient Growth • Clear and defined mission, strategic drivers and • Moving with speed to optimize marketing spend fi
Slide 17: Clear Capital Allocation Priorities and Good Liquidity Throughout the System
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL CLEAR CAPITAL ALLOCATION PRIORITIES AND GOOD LIQUIDITY THROUGHOUT THE SYSTEM Remain Steadfast in System Remains Capital Allocation Priorities Financially Sound 1 REINVEST IN THE BUSINESS • We have a solid liquidity position and strong Capital and Other Inv
Slide 18: In Summary
COCA-COLA SECOND QUARTER 2020 EARNINGS CALL IN SUMMARY • Proud of the system as we continue to adjust and accelerate our strategy • The strength of the system and level of collaboration is paramount • Leveraging the crisis as a catalyst to accelerate the business transformation already underway • Cl
Slide 19: Second Quarter 2020 Earnings Call
SECOND QUARTER 2020 EARNINGS CALL JULY 21, 2020
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) Net Operating Revenues by Operating Segment and Corporate: Three Months Ended June 26, 2020 Europe, Middle East Latin North Asia Global Bottling & Africa America America Pacific Ve
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) (In millions) Three Months Ended June 26, 2020 Selling, Net Cost of general and Other operating goods Gross Gross administrative operating Operating Operating revenues sold profit margin expense
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) (In millions except per share data) Three Months Ended June 26, 2020 Equity Other Income Diluted income income before net (loss) (loss) income Income Effective Net income — net — net taxes taxes
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