Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- · BMV:KOF/UBL
Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- — Coca-Cola FEMSA — Investor Presentation (September 2005)
20 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s investor presentation, September 2005
Slide 1: Coca-Cola FEMSA
Coca-Cola FEMSA September 2005 1
Slide 2: Cautionary Statement
Cautionary Statement FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements relate to Coca-Cola FEMSA, S.A. de C.V. and subsidiaries (“KOF”) and their bus
Slide 3: Contents
Contents Coca-Cola FEMSA: An Attractive Investment Story Financial and Operating Performance Why we can grow? What are we doing to grow? Brazilian Case Study 3
Slide 4: Coca-Cola Femsa – The Latin America Leader in Beverages
Coca-Cola Femsa – The Latin America Leader in Beverages The Company is the preeminent bottler of Coca-Cola products in Latin America and the second largest in the world Mexico City Guatemala, Nicaragua, Central & Costa Rica & Panama Southeast Mexico Venezuela Key metrics in 2004 1,855 million
Slide 5: Attractive Valuation Profile and Growth Prospects compared with Global Peers
Attractive Valuation Profile and Growth Prospects compared with Global Peers FY04 Revenues EBITDA EBITDA % EV(2) EV(2)/EBITDA (MM USD) KOF(1) 4,017 862 21.5% 6,869 8.0 PBG 10,906 1,569 14.4% 12,267 7.8 CCE 18,158 2,560 14.1% 21,454 8.4 Andina 720 164 22.8% 2,107 12.9 Hellenic 5,309 912 17.2% 9,399 1
Slide 6: Sustainable Free Cash Flow Generation
Sustainable Free Cash Flow Generation…. Free Cash Flow (MM USD) (1) 118(2) 293 307 223 207 323 127 46 32 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 -67 -70 Note: All figures are in nominal Mexican pesos as of the reported year and converted into US$ for the respective year end exchange rate.
Slide 7: Aggressive Deleveraging Strategy
….that supports an Aggressive Deleveraging Strategy Two years after acquiring Panamco, we have managed to reduce net debt by US$595 mm $2,828 Cash KOF Net Debt 3,000 $2,574 330 $2,319 $2,242 $2,218 $2,413 2,500 248 208 510 323 290 2,000 1,500 2,498 2,326 (2) 1,000 2,111 1,919 1,928 1,903 500 0 Exc
Slide 8: Contents
Contents Coca-Cola FEMSA: An Attractive Investment Story Financial and Operating Performance Why we can grow? What are we doing to grow? Brazilian Case Study 8
Slide 9: A balanced Geographic Diversification – KOF 1st Half 2005
A balanced Geographic Diversification – KOF 1st Half 2005 Volume (924.6 MM CU) Revenues (US$ 2,223 MM) (1) Argentina 7.7% Argentina 5.6% Brazil Brazil 11.5% 13.0% Venezuela 9.7% Venezuela 9.3% Mexico Mexico 54.8% 57.2% Colombia 9.1% Colombia 9.4% 7.0% Central America 5.9% Central America Highlights
Slide 10: Contents
Contents Coca-Cola FEMSA: An Attractive Investment Story Financial and Operating Performance Why we can grow? What are we doing to grow? Brazilian Case Study 10
Slide 11: Opportunities for Growth
Opportunities for Growth Improve per capita consumption Favorable population and GDP growth Opportunity to develop a segmented product portfolio, as in Argentina, in all our territories Foster single serve consumption through a wider packaging portfolio Opportunity to capture flavored carb
Slide 12: Market Multisegmentation Model
Market Multisegmentation Model In Argentina, we developed an execution model segmented through a differentiated portfolio, adapting to the competitive and economic environment of the country The revenue management strategies implemented in Argentina have provided us with a base of knowledge that
Slide 13: Contents
Contents Coca-Cola FEMSA: An Attractive Investment Story Financial and Operating Performance Why we can grow? What are we doing to grow? Brazilian Case Study 13
Slide 14: What are we doing to grow
What are we doing to grow…. Continually strengthening the Coca-Cola brand through a special focus on its execution in every market, for example: Larger number of multi-serve presentations alternatives in Central America with the objective of increasing per capita consumption Launch of the 2.5
Slide 15: In Mexico the “Portfolio of Choice”
In Mexico the “Portfolio of Choice” Tailored a diversified packaging portfolio in Mexico for the Coca-Cola brand, offering more than 13 different packaging presentations with different price points, from Ps. 3 up to Ps. 16 CC 2.5 lts N-Ret $16.00 CC 2.0 lts. N-Ret CC 2.5 lts. Ret $13.00 $13.00 PC
Slide 16: Refreshing flavored CSD’s through ongoing innovation
Refreshing flavored CSD’s through ongoing innovation Launched new brands, line extensions for CSD flavors and packaging presentations (Mexico – Fresca Roja, Central America – Fresca Rosa, Colombia – Crush Multiflavors, Brazil – Splash bottle for Fanta) Fostering consumption of CSD light segment
Slide 17: Special Focus in Non-carbs
Special Focus in Non-carbs Focusing with new brands, line extensions of existing brands, and existing brands of the Coca-Cola Company in flavored water, juice based products, functional drinks, ready to drink juices, and juices from concentrate 17
Slide 18: Contents
Contents Coca-Cola FEMSA: An Attractive Investment Story Financial and Operating Performance Why we can grow? What are we doing to grow? Brazilian Case Study 18
Slide 19: Brazil – Packaging and Channel Mix Evolution
Brazil – Packaging and Channel Mix Evolution Since the acquisition of Panamco, we have taken over the control of the pre-sale function, focusing on growing the traditional channel as percentage of total channel mix Our retailer base has grown from 83,000 retailers to more than 109,000 since May
Slide 20: Reconciliation Tables
Reconciliation Tables Page 6 - FCF Mexican Pesos (historical pesos) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Operating Income 401 641 1,209 1,594 2,056 2,940 3,796 4,440 6,710 7,696 Depreciation, Amortization & Non- Cash Charges 456 581 752 819 1,080 1,271 1,138 975 1,629 2,324 EBITDA 857 1
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