JOHN F. BROCK / CHAIRMAN & CEO BILL DOUGLAS / EVP & CFO

Transcription

1 JOHN F. BROCK / CHAIRMAN & CEO BILL DOUGLAS / EVP & CFO

2 Forward-Looking Statements INCLUDED IN THIS PRESENTATION ARE FORWARD-LOOKING MANAGEMENT COMMENTS AND OTHER STATEMENTS THAT REFLECT MANAGEMENT S CURRENT OUTLOOK FOR FUTURE PERIODS. o o As always, these expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this presentation should be read in conjunction with the risks and uncertainties discussed in our filings with the Securities and Exchange Commission ( SEC ), including our Form 10-K for the year ended December 31, 2012 and other SEC filings. 2

3 Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 10-K

4 CCE at a Glance $8.1 BILLION NET SALES 30 BILLION SERVINGS ANNUALLY TO 170 MILLION CONSUMERS 17 PRODUCTION FACILITIES ~13,000 EMPLOYEES 10-K

5 Solid Fundamentals MARKET 1 CCE NARTD SHARE POSITION 2 ~$65B NARTD A Growing Category Brands Our Consumers Prefer and a Successful Value & Volume Position TRACK RECORD LT Targets 3 Yr CAGR 5 Yr CAGR OF GROWTH 3 Net Sales 4 6% 7% 5% OI 6 8% 6% 7% EPS HSD 12% 10% 1. Non-alcoholic ready-to-drink AC Nielsen FY12 & Canadean FY11; excludes tap/bulk water & dairy 2. AC Nielsen FY12 3. Long-term targets are comparable & currency neutral; comparable CAGRS, base years represents Legacy CCE EU operating segment except EPS which is total company; includes segment remeasurement 5

6 Vision and Global Operating Framework VISION Be the best beverage sales and customer service company #1 OR STRONG #2 IN EVERY CATEGORY WE COMPETE OUR CUSTOMERS MOST VALUED SUPPLIER A WINNING AND INCLUSIVE CULTURE Drive Consistent Long-Term Profitable Growth 6

7 Commitment to Shareowners DRIVE CONSISTENT LONG-TERM PROFITABLE GROWTH o Achieve long-term targets o Return cash to shareowners 7

8 Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 8

9 NARTD Category Growth Opportunity PER CAP MIX OPPORTUNITIES ~30% ~40% ~30% US ~60% ~25% ~15% CCE Territories o ~$65B 3 NARTD Retail Value with a +6% 3 year CAGR o GROW NARTD European consumption is ~0.6x of US o GROW SPARKLING European consumption is ~0.5x of US NARTD Sparkling 1 NARTD Other 2 All Other Bev 2 1. AC Nielsen FY12 2. Canadean FY11 3. Non-alcoholic ready-to-drink AC Nielsen FY12 & Canadean FY11; excludes tap/bulk water & dairy 9

10 NARTD A Competitive Category NARTD TOP 5 BRAND OWNERS VOLUME VALUE 33.5% 25.0% 2.2% 7.0% 6.8% 6.3% 19.2% 24.6% 26.5% 3.3% 3.9% 4.2% 9.3% 28.2% Private Label Other Brand Owners Orangina/Schweppes Nestle Danone Pepsi Coca-Cola AC Nielsen FY12; Private Label and Other Brand Owners individual companies have value share < 3% 10

11 NARTD CCE Category and Segment Rank VOLUME VALUE CCE STRATEGY NARTD 1 1 Colas Sparkling Flavors GROW SEGMENTS Energy Stills SELECTIVELY GROW VALUE SHARE AC Nielsen FY12 11

12 CCE Focused on High Value Segments CATEGORY & CCE MIX 37% 24% 39% 46% 37% 17% 86% 11% 3% CCE participates in the highest value segments that drive favorable profit mix NARTD Volume NARTD Value CCE Volume Sparkling Still Water 1. AC Nielsen FY K

13 Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 13

14 Capturing the Growth Opportunities SUCCESSFUL BRANDS OUTSTANDING MARKETING & EXECUTION GREAT PEOPLE 14

15 Successful Brand Portfolio COCA-COLA TRADEMARK 68% MIX SPARKLING FLAVORS AND ENERGY 18% MIX STILLS 14% MIX 10-K

16 Sparkling Coca-Cola Trademark PACKAGE INNOVATION o MyCoke 1.75 ltr, 375ml, 250ml BRAND INNOVATION & EXPANSION o Coke Zero Cherry COKE ZERO VOLUME 12.6% 3YR CAGR o Vanilla Coke #1 IN VOLUME AND VALUE COLA SHARE IN EVERY TERRITORY AC Nielsen FY12 16

17 Sparkling Flavors & Energy PACKAGE INNOVATION o o o Fanta 1 ltr & Fridgepack Relentless 250ml & 500ml can Burn 500ml BRAND INNOVATION & EXPANSION o o o Sprite with Stevia Monster line extensions Relentless & Burn Lemon SWEETENER INNOVATION o Burn Sugar Free 2012 ENERGY SEGMENT GROWTH Energy Segment CCE Brands Volume 8% 19% Value 9% 16% CCE OUTPERFORMED THE SEGMENT IN 2012 AC Nielsen FY12 17

18 Stills PACKAGE INNOVATION o Oasis 2 ltr o Nestea can & 1 ltr BRAND INNOVATION & EXPANSION o Oasis Mango & Lemonade o vitaminwater Sunshine o Ocean Spray SWEETENER INNOVATION o Nestea Lemon Stevia o Oasis Citrus Punch Light 18

19 2013 Marketing Calendar 2013 GROWTH WILL BE DRIVEN BY CORE BRANDS COKE WITH MEALS 19

20 Commercials 20

21 Procurement, Production, and Logistics Excellence CUSTOMER CENTRIC SUPPLY CHAIN o Pan European scale with global procurement capability o Flexible & responsive to customers o Cost efficient & expandable infrastructure o Responsible & sustainable 21

22 Flexible and Efficient Distribution ROUTES TO MARKET 93% 99% 7% 1% DIRECT ~10% through CCE 62% 38% 58% 99% 99% 1% 1% 42% through customer, wholesalers, or 3 rd party INDIRECT ~90% Indirect Direct Norway mix estimate of EOY13 run rate; included in total company mix 22

23 Revenue Growth Management (RGM) Excellence CUSTOMER VALUE-CREATION MODEL o Value-creating selling capabilities o Investing in technology o On-line & digital shopping 23

24 Optimize Sales and Marketing Structure CHANNEL-CENTRIC MODEL TO BETTER ALIGN CENTRAL & FIELD SALES o Best practice evolution o Proven results in Benelux o More aligned to customer needs o Better position to capitalize on opportunities IMPROVE OUR OPERATING MODEL AND PLATFORM FOR DRIVING SUSTAINABLE FUTURE GROWTH 24

25 Hard Discount Channel Opportunity LEVERAGE OUR CUSTOMER VALUE-CREATION SELLING MODEL o Large and important consumer channel o One of the fastest growing channels o Expanding our business with tailored offerings to better address consumer and customer needs 25

26 New Norway Operating Model DRIVING VALUE FOR CUSTOMERS, CONSUMERS, AND CCE o ROUTE TO MARKET CHANGE Facilitating efficiency and tailoring delivery to match customer preferences o PACKAGING CHANGE Unlocking value by creating expanded customer and consumer options o ENVIRONMENTAL IMPACT New model expands recycling capabilities and reduces the impact of production, packaging, and distribution 26

27 Our People ATTRACT, DEVELOP AND RETAIN A HIGHLY TALENTED AND DIVERSE WORKFORCE CRS is one of the top three employee engagement drivers Focused on driving diversity 27

28 Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 28

29 Financial Priorities DRIVE CONSISTENT LONG-TERM PROFITABLE GROWTH CONSISTENT earnings in line with our long-term objectives MAXIMIZE free cash flow and maintain financial flexibility INCREASE return on invested capital and drive shareowner value 29

30 Financial Approach CASH FROM OPERATIONS CAPEX OPTIMIZE CAPITAL STRUCTURE + Achieve long-term targets Invest prudently Reach and operate within target leverage range M&A RETURN CASH TO SHAREOWNERS +/ = Short-term use and long-term source of cash Competitive dividend and share repurchase 30

31 Cash from Operations GROWTH NET SALES OPERATING INCOME ACHIEVE LONG-TERM TARGETS 4% 6% 6% 8% GENERATE SOLID FREE CASH FLOW Comparable & Currency Neutral 31

32 Invest for Long-Term Growth 2012 CAPITAL MIX CAPITAL HIGHLIGHTS 14% o LT target ~4.0% 4.5% of net sales 28% 58% o 2013 expected to be ~$350M o ~2/3 supports growth, ~1/3 maintains existing assets Operations Cold Drink Equipment IT, Other 10-K

33 Balance Sheet Flexibility NET DEBT 1 TO EBITDA LONG-TERM TARGET 2.5x 3.0x 2.5x 1.6x 2 1.7x 2.0x E 2013E LEVERAGE OPPORTUNITY 3 ~$0.7B at 2.5x K; Net Debt is total 3rd party debt less cash & cash equivalents; comparable EBITDA 2. Pro forma FY10 assumes D&A of low to mid $300M 3. Calculation based on 2012 EBITDA 33

34 Balanced Debt Portfolio LONG-TERM DEBT MATURITY ($M) WEIGHTED AVERAGE COST OF DEBT ~3% 10-K; rounded 34

35 Investing in High Return Opportunities (including M&A) OPPORTUNITIES o Core business growth o Adjacent territories and adjacent categories o Other territories o New business EVALUATION CRITERIA o Cash flow of existing business o Incremental value creation by CCE o Incremental value to CCE s core business o Risk, cost, and timeframe OPPORTUNITIES EVALUATED AGAINST ALTERNATIVES, INCLUDING RETURN OF CASH TO SHAREOWNERS 35

36 Solid Return on Invested Capital (ROIC) DRIVE Operating Growth INVEST in High Return Initiatives TIGHTLY MANAGE Working Capital After Tax Comparable OI Average Invested Capital = = 2012 Year End CCE ROIC 14% LONG-TERM TARGET OF 20 BPS ANNUAL IMPROVEMENT Average Invested Capital = (Beginning & Ending Net Debt & Equity) / 2 36

37 Cash Returned to Shareowners Dividends 2013 RATE INCREASE OF 25% ANNUAL DIVIDEND RATE $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $ E 10-K 37

38 Cash Returned to Shareowners Share Repurchases E $0.2B $0.8B $0.8B $0.5B $2.3B of Share Repurchases after formation of new CCE through 2013E 10-K; rounded 38

39 Progress Report Presented during our 2011 Investor Event 39

40 Progress Report On Track SEPTEMBER 2011OPPORTUNITY: $4.5B (2H E) FREE CASH FLOW OF ~$2.5B BALANCE SHEET ~$2B+ 2H11 - FY12 FY13E Balance 2H11 - FY12 FY13E Balance ON TRACK FOR ~$4.5B OPPORTUNITY 2H11 THROUGH 2014E Free cash flow adjusted for cash restructuring costs, pension contributions in excess of pension expenses, and currency translation; rounded 40

41 2013 Outlook GROWTH NET SALES OPERATING INCOME EPS 2013 GUIDANCE Mid-Single-Digits Mid-Single-Digits ~10% NEAR TERM, WE EXPECT SOLID BUSINESS RESULTS & SHARE REPURCHASE TO DRIVE EPS GROWTH ABOVE OUR LONG-TERM OBJECTIVES Comparable & Currency Neutral 41

42 Key Financial Takeaways FOCUS ON CONSISTENT LONG-TERM PROFITABLE GROWTH o History of managing the levers of our business to deliver growth o Favorable and flexible capital structure o Long-term financial objectives are challenging, yet achievable o EPS outlook for 2013 exceeds our long-term objectives 42

43 Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 43

44 CRS Vision and Framework STRATEGIC PRIORITIES DELIVER FOR TODAY On our commitments and targets DELIVER FOR TODAY INSPIRE FOR TOMORROW LEAD THE INDUSTRY In energy and climate change and sustainable packaging and recycling INNOVATE FOR THE FUTURE Opportunities for innovation, collaboration and partnership SUSTAINABILITY VISION We will deliver for today, growing a low carbon, zero waste business, and inspire and lead change for a more sustainable tomorrow. 44

45 CRS Business Benefits IMPROVE OPERATIONAL EFFICIENCIES AND EFFECTIVENESS INCREASE EMPLOYEE ENGAGEMENT AND ADVOCACY EXCEED CUSTOMER EXPECTATIONS MEET GROWING CONSUMER TRENDS ENHANCE IMAGE AND REPUTATION 45

46 Key Achievements DECREASING ENVIRONMENTAL IMPACT WHILE REDUCING COSTS o Water reduced water use ratio to 1.4 liters/liter o Carbon lowest ever carbon footprint o Packaging new recycling joint ventures and residential recycling study 46

47 Gaining External Recognition CARBON DISCLOSURE PROJECT Leadership Index 47

48 Business Environment Risks CHALLENGING MACROECONOMIC ENVIRONMENT VOLATILE COMMODITY COSTS INCREASING FOCUS ON HEALTH AND WELLBEING RISK OF INCREASED TAXES Though optimistic about our outlook, we are realistic about key business environment risks 48

49 Key Takeaways CCE IS EXECUTING OUR STRATEGIC PRIORITIES o o o o o History of solid growth Financial priorities focused on long-term profitable growth Track record of delivering shareowner value Operating environment remains challenging In position to deliver our 2013 objectives 49

50 JOHN F. BROCK / CHAIRMAN & CEO BILL DOUGLAS / EVP & CFO