Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — Q3 2013 Earnings Presentation
23 slides from Coca-Cola HBC's earnings presentation, November 2013
Slide 1: Third quarter and nine month results as of 27 September 2013
Third quarter and nine month results as of 27 September 2013 Dimitris Lois - CEO Michalis Imellos - CFO
Slide 2: Disclaimer
Disclaimer Unless otherwise indicated, the condensed consolidated interim 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 contains f
Slide 3: Key messages for the third quarter
Key messages for the third quarter Continued to win in the marketplace Currency neutral revenue per case increased for the ninth consecutive quarter Margin growth both at comparable gross profit and EBIT level Solid free cash flow generation Volume challenge driven by tough macroeconomic a
Slide 4: Financial Review
Financial Review Michalis Imellos Chief Financial Officer
Slide 5: Financial performance overview
Financial performance overview Q3’13 Q3’12 Ch. 9M’13 9M’12 Ch. Volume (m u.c.) 575 594 -3% 1,579 1,608 -2% Net Sales Revenue (€m) 1,918 2,021 -5% 5,299 5,440 -3% Comp. Gross Profit 36.8% 36.6% +20bps 35.9% 36.3% -30bps Margin % Comp. EBIT (€ m) 207 211 -2% 386 398 -3% Comp. EBIT Margin % 10.8% 10.4%
Slide 6: Ninth consecutive quarter of growth in currency neutral net sales revenue per case
Ninth consecutive quarter of growth in currency neutral net sales revenue per case Q3’13 9M’13 Total Coca-Cola HBC Volume -3% -2% Currency neutral revenue per case +1.4% +1.1% Established Markets Volume -4% -5% Currency neutral revenue per case -0.7% -0.3% Developing Markets Volume -2% -3% Currency
Slide 7: Input costs still growing albeit at a slower pace
Input costs still growing albeit at a slower pace Q3 2013 „ Currency neutral input cost per case increased by low single digit „ EU sugar costs increased year-over-year „ World sugar costs remained on a downward trend „ PET resin costs increased year-over-year „ Lower aluminium costs in the quarter
Slide 8: We continue to focus on increasing operational efficiency
We continue to focus on increasing operational efficiency Q3’13 Q3’ 12 Ch. Net Sales Revenue (€ m) 1,918 2,021 -5% Comp. Operating Expenses (€ m) (498) (529) -6% Comp.OPEX as % of NSR 26.0% 26.2% -20bps Comp.EBIT Margin (%) 10.8% 10.4% +40bps 9M’13 9M’ 12 Ch. Net Sales Revenue (€ m) 5,299 5,440 -3%
Slide 9: Developing and Established markets grew comparable operating profit
Developing and Established markets grew comparable operating profit Absolute change in Comparable EBIT Comparable EBIT in million Euros in million Euros Q3’13 Q3’12 Total CCH -3 207 211 Established 2 74 72 Developing 11 37 26 Emerging -17 95 112 * Differences in summations and variances are due to r
Slide 10: Restructuring update
Restructuring update FY 2013 targets „ Benefits from 2013 restructuring initiatives expected at €30m on an annualised basis „ Total benefits in 2013 (from 2012 and 2013 initiatives) expected at €65m „ Expecting pre-tax restructuring charges of just over €50m in 2013 „ Restructuring focus continues t
Slide 11: Solid Free Cash Flow Generation
Solid Free Cash Flow Generation Q3’13 Q3’12 Abs 9M’13 9M’12 Abs in million Euros Ch. Ch. Operating Profit (EBIT) 206 202 +4 340 366 -27 Change in Working 79 134 -55 23 65 -43 Capital Net capital expenditure (105) (119) +14 (257) (290) +33 Free Cash Flow (FCF) 248 277 -30 345 362 -17 * Differences in
Slide 12: Diversified financial profile
Diversified financial profile Debt maturity profile Available Facilities in million •ACTIVE: €500m Revolving Credit Facility until 2016 €800 €600 •CANCELLED: €550m Squeeze-out Bridge Facility €317 $400 •CANCELLED: €500m Bond Bridge Facility 2014 2015 2016 2020 Jan Sep Nov June 12
Slide 13: 2013 Financial outlook
2013 Financial outlook „ Currency neutral net sales revenue per case: Expecting growth year-over-year, albeit at a slower pace than 2012 „ Currency neutral input costs per case: Expecting low single-digit increase „ FX: Headwind based on hedged positions and our forecasted rates-decreased versus Q2
Slide 14: Operational Review & Strategy
Operational Review & Strategy Dimitris Lois Chief Executive Officer
Slide 15: Volume contribution by operating segment
Volume contribution by operating segment 594m u.c. 575m u.c. -4% -2% -4% Developing Established Emerging Q3 12 Q3 13 15
Slide 16: We continued to win in the marketplace
We continued to win in the marketplace 16
Slide 17: Trademark Coca-Cola products were the key growth drivers in Q3
Trademark Coca-Cola products were the key growth drivers in Q3 Sparkling declined by 0.5% Trademark Coca-Cola products grew by 3% Coca-Cola Zero grew by 18% Energy grew by 2% Tea declined by 11% Juice grew by 2% Multon grew by 12% Water declined by 10% 17
Slide 18: Established markets – consumer environment remains under pressure
Established markets – consumer environment remains under pressure Volume -4% Trademark Coca-Cola RTD-Tea Coca-Cola Zero Currency neutral net -13% Flat +11% sales revenue per case -0.8% „ Italy: Volume declined by high single-digits in the quarter, with Coca-Cola Zero up by 9%. Ongoing macro economic
Slide 19: Developing markets – moderately improving trends in a volatile environment
Developing markets –moderately improving trends in a volatile environment Volume -2% Trademark Coca-Cola Juice Coca-Cola Zero Currency neutral net +3% +5% +27% sales revenue per case +1.5% „ Poland: Volume increased by low single-digits, driven by a low single-digits growth in both sparkling and jui
Slide 20: Emerging markets – characterized by varying levels of performance
Emerging markets – characterized by varying levels of performance Volume -4% Trademark Juice Water Coca-Cola Currency neutral net +3% -13% +3% sales revenue per case +3.3% „ Russia: Volume grew by low single-digits in the third quarter. Growth in sparkling and juice more than offset declines in the
Slide 21: Our Strategy: Winning in the marketplace
Our Strategy Winning in the marketplace Revenue ahead of volume Focus on Cost leadership Generate solid Free Cash Flow 21
Slide 22: Long-term growth drivers
Long-term growth drivers Most known brands in Low per capita the world! consumption with great potential to grow Diverse geographic footprint with strong emerging market exposure Strong focus on cost leadership and history Solid track record of of solid cash winning in the generation marketplace 22
Slide 23: For further information on Coca-Cola HBC please visit our website
For further information on Coca-Cola HBC please visit our website at: www.coca-colahellenic.com or contact our Investor Relations team Investor.relations@cchellenic.com +30.210.6183 100 23