Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Q3 2020 Earnings Presentation
22 slides from Coca-cola Company (the)'s earnings presentation, Oct 22, 2020
Slide 1: Third Quarter 2020 Earnings Call
THIRD QUARTER 2020 EARNINGS CALL OCTOBER 22, 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: Continued to Rebound from Peak COVID Pressures
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL CONTINUED TO REBOUND FROM PEAK COVID PRESSURES Two Key Factors Sequential Improvement Consolidated (16%) (4%) 1 Level of Lockdown in any Given Market Volume Q2 2020 Q3 2020 Away-From- (Mid- Home ~(50%) Teens%) Volume April 2020 Q3 2020 2 Size of Away-From-H
Slide 4: We Are Seeing Varying Degrees of Impact
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL WE ARE SEEING VARYING DEGREES OF IMPACT EMEA (3%)* Sequential improvement Away-from-home stalling in September Sparkling & Juices resilient in At-Home North America (6%)* Global Ventures (11%)* Asia Pacific (4%)* Continued softness in Foodservice partially
Slide 5: Costa Improving Despite Challenges
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL COSTA IMPROVING DESPITE CHALLENGES Costa Costa Express At-Home Stores Machines Offerings • Almost all stores open • +MSD% growth in like-for- • Costa is the fastest • ~95% in the U.K. like sales vs. prior year growing brand in bean and • ~100% in China pods
Slide 6: Share Performance Continues to Be Impacted by Channel Mix
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL SHARE PERFORMANCE CONTINUES TO BE IMPACTED BY CHANNEL MIX • Positive underlying performance driven by strong share gains in at-home channels EMEA • More than offset by negative channel mix due to pressure in away-from-home LATAM channels • Sequential improv
Slide 7: Recovery Is Not a Straight Line Around the World
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL RECOVERY IS NOT A STRAIGHT LINE AROUND THE WORLD Outbreak Gradual Reopening “New Normal” Phase I Phase II Phase III • A handful of countries are still in the grips of the first wave LEVELS OF LOCKDOWN • While in certain other parts of the world, the pandemi
Slide 8: Accelerating the Strategy Already in Motion
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL ACCELERATING THE STRATEGY ALREADY IN MOTION Five Priorities TOPLINE Optimized portfolio of strong global, 1 regional and scaled local brands Disciplined innovation framework and 2 increased marketing effectiveness Stepped-up RGM and execution 3 capabilities
Slide 9: Growth Portfolio to Drive Quality Leadership
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL GROWTH PORTFOLIO TO DRIVE QUALITY LEADERSHIP Portfolio combining strong Well-diversified brand Sunset or transition 1 global, regional and local 2 portfolio – beverages 3 brands that were not selected brands for life ambition Split of Split of retained bran
Slide 10: Innovation Combines Discipline with Agility
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL INNOVATION COMBINES DISCIPLINE WITH AGILITY Innovation must deliver Innovation will come in Converge on best ideas 1 on one of three objectives 2 different forms 3 and scale with speed • Significantly increase • Leverage a trademark to New Drinkers (Weekly+
Slide 11: A New Way of Working – The Networked Model
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL A NEW WAY OF WORKING – THE NETWORKED MODEL FROM: Current State TO: Future State Range of different Category Teams — Build brands and scale marketing models 17 9 Business Operating Units (BUs) Units (OUs) Analytics dispersed across Platform Services — Scaled
Slide 12: Guided by Our Purpose – To Refresh the World & Make a Difference
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL GUIDED BY OUR PURPOSE – TO REFRESH THE WORLD & MAKE A DIFFERENCE ✓ Continue to make progress across ~30%* key sustainability initiatives % of business with at least one brand that is packaged in 100% recycled plastic California ✓ Joining stakeholders in sup
Slide 13: Accelerating Our Strategic Transformation – Beverages for Life Ambition
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL ACCELERATING OUR STRATEGIC TRANSFORMATION – STEP FORWARD TOWARD OUR BEVERAGES FOR LIFE AMBITION Consumer-centric Accelerated transformation by the pandemic Creating a structure A move to a networked that follows our strategy organization An initiative to dr
Slide 14: Third Quarter Performance
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL THIRD QUARTER PERFORMANCE Quarterly Results Key Headlines • Sequential improvement in volume through the Unit Case Volume (4%) ongoing recovery phase • Driven by an initial recovery in the away-from-home (6%) Organic Revenues* (-3% Price/Mix, -4% CSEs) (AFH
Slide 15: Translating Topline Growth to Maximized Returns
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL TRANSLATING TOPLINE GROWTH TO MAXIMIZED RETURNS Strategic Financial Initiatives Implications Portfolio Optimization ~1% of Topline & Profits Networked Organization Impact ~$350-$550MM Costs (savings ~1x) $ 15 15
Slide 16: Outlook
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL OUTLOOK • Not providing detailed full year 2020 financial outlook given the uncertainty surrounding coronavirus pandemic • Topline to continue to correlate to the level of mobility and the health of the away-from- home channels • Channel and package mix wil
Slide 17: Clear Capital Allocation Priorities and Good Liquidity Throughout the System
COCA-COLA THIRD 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 Inve
Slide 18: In Summary
COCA-COLA THIRD QUARTER 2020 EARNINGS CALL IN SUMMARY • Together with our bottling partners, we continue to focus on winning as the world reopens • Pandemic allowed us to realize we could be bolder in our actions targeting growth for the future • Seeing promising actions that are positioning the org
Slide 19: Third Quarter 2020 Earnings Call
THIRD QUARTER 2020 EARNINGS CALL OCTOBER 22, 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: Three Months Ended September 25, 2020 Reported (GAAP) $ 8,652 Items Impacting Comparability: Other Items (4) Comparable (Non-GAAP) $ 8,648 Three Months Ende
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) Operating Income: Three Months Ended Three Months Ended September 25, 2020 September 27, 2019 Reported (GAAP) $ 2,298 $ 2,499 Items Impacting Comparability: Asset Impairments — 42
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) Diluted Net Income Per Share: Three Months Ended September 25, 2020 Reported (GAAP) $ 0.40 Items Impacting Comparability: Strategic Realignment 0.06 Equity Investees 0.01 Other Ite
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