CAPITAL MARKETS DAY ACCELERATING QUALITY GROWTH

Transcription

1 CAPITAL MARKETS DAY 22 MAY 2018, LONDON ACCELERATING QUALITY GROWTH

2 Forward Looking Statements This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek s ( CCI ) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally be identified by the use of words such as may, will, expect, intend, estimate, anticipate, plan, target, believe or other words of similar meaning. These forward-looking statements reflect the current views and assumptions of management and are inherently subject to significant business, economic and other risks and uncertainties. Although management believes the expectations reflected in the forward-looking statements are reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that could cause actual results to differ materially from CCI s expectations include, without limitation: changes in CCI s relationship with The Coca-Cola Company and its exercise of its rights under our bottler's agreements; CCI s ability to maintain and improve its competitive position in its markets; CCI s ability to obtain raw materials and packaging materials at reasonable prices; changes in CCI s relationship with its significant shareholders; the level of demand for its products in its markets; fluctuations in the value of the Turkish Lira or the level of inflation in Turkey; other changes in the political or economic environment in Turkey or CCI s other markets; adverse weather conditions during the summer months; changes in the level of tourism in Turkey; CCI s ability to successfully implement its strategy; and other factors. Should any of these risks and uncertainties materialize, or should any of management s underlying assumptions prove to be incorrect, CCI s actual results from operations or financial conditions could differ materially from those described herein as anticipated, believed, estimated or expected. Forward-looking statements speak only as of this date and CCI has no obligation to update those statements to reflect changes that may occur after that date.

3 Agenda 09:30 Burak Başarır CEO Accelerating Quality Growth 10:15 Michael Coombs CFO Driving Value for Our Stakeholders 11:00 Ebru Özgen Group Human Resources Director Investing in Our People 11:30 Tugay Keskin Turkey General Manager Delivering Quality Growth 13:00 Orhun Köstem Middle East & Pakistan Region Director Pakistan and ME Turnaround 13:30 Lisani Atasayan Central Asia Region Director Return of Central Asia 14:15 Burak Başarır CEO Closing Remarks 14:30 Q&A

4 BURAK BAŞARIR Chief Executive Officer Accelerating Quality Growth

5 120+ Years of KO System Experience

6 CCI is a Regional Powerhouse 8.5 billion annual revenue 1.4 billion annual EBITDA 26plants (1), 124 production lines (1) 9thousand employees 1.2 billion UC (2) sales volume 10 countries Kazakhstan 28billion annual servings to 400million people Azerbaijan Kyrgyzstan Annual production capacity of 1.5 billion UC ~800K sales points Turkey Syria Jordan Iraq Turkmenistan Tajikistan Pakistan Pakistan Data as of 2017, unless otherwise stated (1) As of 2018 (2) Unit case, 1 UC equals 5,678 liters 8

7 with a Successful Track Record of Growth Volume Revenue EBITDA 4x 12% CAGR x 18% CAGR x 18% CAGR M UC 424M UC 480M UC 553M UC 1.2BN UC Single country in 2005 Expanding into Central Asia and Iraq in Pakistan in A regional bottler today 9

8 Strong Performance in % 729 million TL Record high FCF Fastest growing bottler in the Coca-Cola System* 33.9% 34.0% GROWTH YOY 20.9% MARGINS 15.5% 16.2% 3.2% 4.1% 4.9% 3.9% 9.1% 10.3% VOLUME NET REVENUE EBITDA FY16 FY17 EBIT EBITDA GROSS PROFIT FY16 FY17 *Across top the Coca-Cola System Bottlers 10

9 Followed by a Solid Start to 2018 Q118 GROWTH YOY MARGINS 45.7% 30.9% 32.9% 12.4% 19.9% 4.5% 7.9% 12.4% 15.1% VOLUME NET REVENUE EBITDA EBIT EBITDA GROSS PROFIT 1Q17 1Q18 11

10 With the Contribution of all Regions 50 % 37 % 13 % TURKEY MIDDLE EAST & PAKISTAN CENTRAL ASIA VOLUME GROWTH, YOY FY % +4.0% +7.0% 1Q % +7.5% +18.7% Volume contribution of regions,

11 Quality Growth AS OF 2017 DELIVERING ON OUR STRATEGIC GROWTH EQUATION EBITDA > NET > REVENUE > TRANSAC- TIONS (1) VOLUME (1) +26% +21% +5% +3% (1) Excluding NRTD Tea 13

12 Our Geography has Abundant Opportunities 273 NARTD servings 52% urban % 2017 Low per caps Increasing urbanization ~60% below age 30 Young population 20 MN Faster population growth Source: UN

13 Lower per caps in CCI Countries NARTD per cap* 1,415 1,335 1,172 1,082 1, CCI weighted average: * NARTD includes sparkling soft drinks, ready-to-drink tea, energy drinks, juices, packaged water * NARTD per cap per year in terms of number of 8 ounce servings, data as of 2017 CCI s share 15

14 NARTD Value Growth Opportunity TOTAL NARTD INDUSTRY IN CCI COUNTRIES: $12BN (2017) NARTD 28% INDUSTRY VALUE GROWTH SPARKLING 51% STILLS 9% +$3bn 8% CAGR E WATER 8% CCI Value Share Opportunity Source: Nielsen, Canadean and internal estimates, data as of

15 More Room to Grow 1mn COOLERS 73% COVERAGE 61% Outlet Penetration* 800K OUTLETS 44% Monthly** HOUSEHOLD PENETRATION ~50% OCCASIONAL USERS GENERATING 18% OF VOLUME** *Number of outlets where we are available divided by total outlets in our 10 countries ** Source: Ipsos as of 2018 YTD, B3/BGS as of 2017 data for Turkey 17

16 More Room to Grow 58% Share of Immediate Consumption (IC) Packages in Sparkling 50% Young Population in CCI countries ~60% 40% 35% Teen Recruitment Opportunity! 28% 25% Asia Pacific North America World Average Europe, Middle East and Africa Latin America CCI 18

17 Quality Growth Requires Strategy Sustainable Value Creation Execution People 19

18 Clear Strategic Framework Vision Be the Best FMCG Company Across our Markets Customer & Consumer Being the preferred partner of our customers, offering our consumers a wide choice of products fit for every lifestyle and occasion Community CREATE VALUE People Values Being a good corporate citizen Great place to work 20

19 Strategic Priorities to Create Value Accelerate Growth Win at the Point of Sale Exercise Financial Discipline Win with People Full-beverage portfolio Revenue Growth Management (RGM) Expand Sparkling & Stills Increase frequency Regional strategies Increase outlet coverage Increase cooler penetration Right Execution Daily E-commerce Future-proof RTM Productivity savings Working capital improvements Healthy FCF Optimum leverage Effective FX management Integrated Talent Strategy Leadership Development High Performing Team Transformation to OnePeople ONE CCI 21

20 ONE CCI to Drive Business Excellence to Achieve Vision 2025 Towards Vision 2025 Business Excellence - Operating Model Governance - Prescriptive Analytics & Insights - Business Services Delivery - Centers of Expertise (CoEs) Fix Foundation for Real Value Creation Build New (CCI 3.0) Operating Model 22

21 Medium-term Outlook 2017 Medium-Term Volume growth 4.1% 4% - 6% (CAGR) Net Revenue growth (FX neutral) 9.8% 10% - 12% (CAGR) EBITDA Margin 16.2% Slight improvement Capex / Sales 5.9% 7% - 8%* Net Debt / EBITDA 1.5x < 1.5x** *Comparable ** Organic and FX-neutral 23

22 What You Should Take Away from Today Michael Coombs CFO Ebru Özgen Group Human Resources Director Tugay Keskin Turkey General Manager Orhun Köstem Middle East & Pakistan Region Director Lisani Atasayan Central Asia Region Director Driving Value for Our Stakeholders Investing in Our People Delivering Quality Growth Pakistan and ME Turnaround Return of Central Asia 24

23 THANK YOU

24 MICHAEL COOMBS Chief Financial Officer Driving Value for our Stakeholders

25 Cash Flow Balance Sheet P&L What Do High Quality Financials Look Like? Quality NSR growth*% > Volume growth% EBIT growth > GP growth ROIC improving Net Debt/EBITDA coming down Interest Cover flat/improving FX Exposure minimized EBITDA margin improving Prudent management of Capex Net Working Capital margin improving * From the optimal combination of price, discount management, mix etc. 27

26 Cash Flow Balance Sheet P&L What Do High Quality Financials Look Like? Quality NSR growth*% > Volume growth% EBIT growth > GP growth ROIC improving Net Debt/EBITDA coming down Interest Cover flat/improving FX Exposure minimized EBITDA margin improving Prudent management of Capex Net Working Capital margin improving * From the optimal combination of price, discount management, mix etc. 28

27 Navigating Profitable Growth I. Quality Growth IV. Financial Strength II. Solid FCF Generation V. Improving Return Metrics III. Effective Cost Management VI. Disciplined Capital Allocation 29

28 I. Quality Growth AS OF 2017 DELIVERING ON OUR STRATEGIC GROWTH EQUATION EBITDA > NET > REVENUE > TRANSAC- TIONS (1) VOLUME (1) +26% +21% +5% +3% (1) Excluding NRTD Tea 30

29 II. Solid Free Cash Flow Generation Prudent CapEx Working Capital Efficiency EBITDA Growth (TL mn) % EBITDA 1,051 1,093 1,379 Cap/Ex % Change in NWC % Free Cash Flow (TL mn) E 31

30 (TL mn) II(a) FCF - Expanding EBITDA margin EBITDA Margin 6% 15% CAGR in % 3.0% (4.6%) 6% 1.4% 3.7% (4.4%) 1,379 4% 1,051 1, % 15.5% 16.2% -2% EBITDA 15 Volume Leverage Revenue Leverage FX & input costs FY16 Volume Leverage Revenue Leverage FX & input costs FY17 32

31 II(b) FCF - Prudent Capital Expenditure CapEx Breakdown (2017) Faisalabad Greenfield Plant CapEx/NSR* 18% 12.3% 8.5% on average 12% 5% 31% 34% 7.3% 5.9% Production Capacity Cold Drink Equipment IT Bottles & Cases Other Construct to best local standards Optimum production plant structure Latest technology *Net Sales Revenue 33

32 II(c) FCF - Improving Working Capital Efficiency Net Working Capital/NSR* DSO DSI DPO 10.4% 7.4% Days 55 Days 4% 49 Days 5.7% Days 47 Days 51 Days *Net Sales Revenue Days 43 Days 57 Days -2% Cash Conversion Cycle Days Days -2% Days 34

33 III(a) Effective Cost Management - Input Costs Breakdown of COGS ~ 30% Packaging Other 15% Aluminum PET Resin Raw material 85% ~ 30% Sugar & Sweetener ~ 30% Concentrate Sugar Prices* Resin Prices** Aluminium Prices** Effective hedging on key raw materials Cash Designation mechanism in place to manage raw material related FX exposure *Sugar price in Turkey, TL/tonne **World reference prices, USD/tonne 35

34 III(b) Cost Management - Disciplined Opex Operating Expenses/NSR* 25.2% 24.8% 23.8% Sales & Distribution Expenses/NSR* General Administrative Expenses/NSR* Warehouse Expenses/NSR* Delivering reductions in OpEx/Sales Targeting sustained improvement going forward Optimise Route-to-Market Higher productivity Rationalise number of warehouses *Net Sales Revenue 36

35 IV(a) Financial Strength - Deleveraging Net Debt (USD mn) USD 150 million hedged in 1Q E Strong Balance Sheet Net Debt/ EBITDA Sugar & Sweetener Covenant < 3.25x Capacity for Bolt-on Acquisitions Net Interest Coverage E Concentrate Covenant > 4x Improving Leverage Metrics E 37

36 IV(b) Financial Strength - Profile of Debt USD mn, as of end 1Q USD 100m USPP will be repaid using excess cash at the end of May 2018 USD 500m Eurobond refinanced early 499 USD 500m Eurobond due in Oct 18 successfully refinanced in Sep 17 Eurobond proceeds held in hard currency, with negligible negative carry No sizeable debt repayment until Average duration of consolidated debt portfolio 3.1 years (4.3 years excluding 2018 USD 500 m Eurobond) 47% 2% 7% 1% 1% 9% 33% 38

37 IV(c) Financial Strength - Refinancing Eurobond Maturity Coupon Rate Investor Demand USD 500m Eurobond (2013) USD 500m Eurobond (2017) 5 Years 7 Years 4.75% 8X oversubscription 4.215% 9X oversubscription LONGER DURATION WITH LOWER FINANCING COST More diversified investor base ~USD 3.5m p.a interest cost improvement vs. outgoing bond CCI was awarded the International Bond Deal of the Year 39

38 IV(d) Financial Strength Balance Sheet Hedging Breakdown of Financial Debt (1Q18) Hedging Transaction for USD 150 mn Participating cross-currency swap EUR 20% Local Currency 3% Fixed semi-annual interest 3,80 USD/TRY until 2024 Principal payment: USD 63% Local Currency (Hedged portion of USD debt) 14% If USD/TRY......is below CCI buys spot price...is between 3,80 & 8,50 CCI buys 8,50 CCI buys spot-4,70 (8,50-3,80) Total TRY interest cost is ~12% for 7 years Monitoring for further hedging opportunities 40

39 V. Improving Return Metrics ROIC ROE ROA 10.2% 9.1% 12.0% 8.3% 3.5% 1.5% 2.2% E E -0.7% Driving long term stakeholder value E -0.3% ROIC ROIC Significant increase in 2017 Sole metric in management long term incentive plan Continuous improvement going forward 41

40 VI(a) Disciplined Capital Allocation ORGANIC GROWTH INORGANIC GROWTH DELEVERAGING SHAREHOLDER RETURN Optimum CapEx Allocation Selective M&A Strategy Debt Repayment Dividends CapEx/Sales ~7% - 8%* Bolt-on acquisitions Optimum debt repayment Sustainable dividend policy Capacity Expansion Cold drink equipment Maintenance Geographical expansion Strategic fit Value creation Reasonable proximity Solid balance sheet Improving leverage metrics Increasing payout ratio Higher dividend yield 42

41 VI(b) Dividends - Enhancing Shareholder Return Dividend per Share (TL per 100 shares) Record high dividends in 2017 Dividend Yield: 2.1% 0.79 A total of TL 280 million in dividends over last 3 years Dividend amount based on: Net distributable income Dividend Yield: 0.3% 0.12 Dividend Yield: 0.5% 0.20 Free cash flow generation CapEx and other funding needs for growth Prevailing macroeconomic conditions * Based on market capitalization as of 18 th May 43

42 Prudent Financial Framework Profitable Growth Financial Strength Solid FCF Generation Disciplined financial priorities to secure quality growth... 44

43 Prudent Financial Framework Improving Return Metrics Selective M&A Strategy Healthy Dividend Payout...and drive stakeholder value 45

44 THANK YOU

45 EBRU ÖZGEN Group Human Resources Director Investing in Our People

46 Clear Strategic Framework Be the best FMCG Company Across our Markets 48

47 CCI at a Glance 9K employees 10 countries 15 languages Young and vibrant workforce Passionate and open to development opportunities 12% Women employees 34% Commercial headcount 24% 30% 43% Blue collar of top management are women; of first level management are women 36 years old with 8 years seniority Signatory of Women Empowerment Principals since 2015 Diversity & Inclusion Committee at the Ex-Com level Workplace Rights Policy against arbitrary discrimination Independently managed Ethics Line %62 GenY employees %31 GenY managers 49

48 People Strategic Priorities TALENT LEADERSHIP ONE TEAM ACCELERATE Integrated Talent Management Leadership Development High Performing Team Excel at HR fundamentals «Fit for purpose» organization «Fit for future» talent development Career Navigation Kick-off senior leadership development programs Develop bench strength for critical positions Live the Values Improve Diversity Right Culture Right Workplace Work Place Rights Standardization of policy, process and systems Improve local work environment, employee and labor relations 50

49 Integrated Talent Management Approach Linking Talent Strategy to business needs Engaging & Connecting Right talent Right job Right time Right development plan Integrated Talent Strategy Recruiting and onboarding Recognition and rewarding Growing leaders Learning and development Performance driven culture Wages and Salaries competitive among peer group COMPETENCY BUILDING Management Incentive Plans based on key business indicators Talent development 70:20:10 model focusing on benchstrength Operational, tactical, critical pipelines 51

50 CCI People Development Programs Top Management Senior Management LEADERSHIP FUNCTIONAL COMPETENCY BUILDING Middle Management Managers Excellence SCHOOL OF HR KEY ACCOUNTS MANAGERS AREA SALES MANAGERS Supervisor Supervisor On-Board AE New-Joiner / Specialist presellers ONLINE SALES PROFESSIONAL CERTIFICATION 52

51 Efficiency is the Key PRODUCTIVITY EMPLOYMENT COST / NET REVENUE vs OTHER BOTTLERS HEALTH & SAFETY 18.3% % 15.5% 15.2% 13.7% % E Bottler1 Bottler2 Bottler3 Bottler4 Bottler5 CCI Volume Per HC EBITDA Per HC Lost Time Cases Safety Maturity Index 53

52 THANK YOU

53 TUGAY KESKİN Turkey General Manager Delivering Quality Growth

54 Turkey has Abundant Opportunities 80MN Sizeable population +1 mn new people/year ~50% below age 30 Young population Increasing urbanization Low per caps 72% urban % NARTD servings Source: UN

55 Lower per Caps in Turkey NARTD per Cap* 1,415 1,335 1,172 1,082 1, CCI weighted average: * NARTD includes sparkling soft drinks, ready-to-drink tea, energy drinks, juices, packaged water * NARTD per cap per year in terms of number of 8 ounce servings, data as of 2017 CCI s share 57

56 Turkey NARTD Value Growth Opportunity NARTD 37% INDUSTRY VALUE GROWTH SPARKLING 71% STILLS 25% +$400mn 4% CAGR E WATER 8% CCI Value Share Opportunity Source: Nielsen, Canadean and internal estimates, data as of

57 Growth in IC Share to Boost Quality Growth SHARE OF IMMEDIATE CONSUMPTION (IC) PACKAGES IN SPARKLING 58% ~2x higher NSR per case 50% 40% 35% 28% ~1.5x higher Gross Margin vs. FC Investing in Coolers Package Innovation Asia Pacific North America World Average EMEA Latin America 22% CCI Turkey Successful Market Execution * Based on CCI analysis for Turkey operations 59

58 Low/No Calorie Growth Opportunity SHARE OF LOW/NO CALORIE IN SPARKLING VOLUME (2017) 26% 23% Increasing Household Penetration & Double-digit growth in No Sugar Reformulation & Focus on Low/No Calorie 8% 6% North America Europe Latin America CCI Turkey 60

59 Delivering Quality Growth EBITDA > NET REVENUE > TRANSACTIONS > VOLUME Accelerate Growth RGM* Superior Execution *Revenue Growth Management 61

60 Accelerating Growth COKE TM GROWTH THROUGH FREQUENCY INCREASE FLAVORED SPARKLING USERBASE ACCELERATE & EXPAND STILLS No Sugar acceleration Ensure continuity and consistency of Coke & Food Teen connection through key moments Energy/uplift at the center of leisure occasion Marketing investment in order to capture additional consumers Functionality driven innovation Capture value in adult premium sparkling Achieve quality leadership and drive market growth in RTD Tea Grow NARTD value (profitably) with Water Evaluate/Expand to white spaces 62

61 Revenue Growth Management Revenues = Volume x Price x Mix - Discounts Revenue Growth Volume Growth Price/Mix Transactions Opportunity Mapping OBPPC Pricing, Terms & Conditions Promo Spend Incidence and Share Regular Opportunity Mapping and 3 year OBPPC Increased conditionality and promo effectiveness in marketplace 63

62 Superior Execution: Route-to-Market Turkey RTM Model Overview Customer ownership is always with CCI Strategic regions (hot-spots) sales operations managed by CCI 225 Distributors are: - Unique distributor model - Cost efficient, local, agile and flexible Sales Logistics Execution Account & team management Order generation Warehouse operations Dispatch & invoicing Delivery Execution Direct (only in 3 metropoles) CCI 3 rd party 3rd party CCI Distributor CCI Distributor 64

63 Superior Execution: Win at Point of Sale Be Available Increase presence of key categories and SKUs Be Cold More coolers with targeted placement strategy Be Visible Connect with shoppers at each stage of their journey 97% Numeric Distribution 80% Cooler Coverage 84pts Red Score 65

64 Accelerating for 5 Consecutive Quarters and Q1'18 was No Exception Accelerate Growth RGM* Superior Execution All-time high CC No Sugar performance RTD Tea Re-launch Higher than inflation growth for the first time since 2012 Doubled cooler investment *Revenue Growth Management 66

65 THANK YOU

66 ORHUN KÖSTEM Region Director Middle East & Pakistan Turnaround

67 ME & Pakistan have Abundant Opportunities 15MN Faster population growth 45% urban % 2017 Increasing urbanization 62% below age 30 Young population Low per caps 194 NARTD servings Source: UN

68 NARTD Value Growth Opportunity NARTD 22% INDUSTRY VALUE GROWTH SPARKLING 40% STILLS WATER 1% 7% +$2.2bn 10% CAGR E CCI Value Share Opportunity Source: Nielsen, Canadean and internal estimates, data as of

69 Lower per Caps in ME & Pakistan 1,415 1,335 Per caps in Pakistan 70% less than Turkey 1,172 1,082 1, CCI weighted average: * NARTD includes sparkling soft drinks, ready-to-drink tea, energy drinks, juices, packaged water * NARTD per cap per year in terms of number of 8 ounce servings, data as of 2017 CCI s share 71

70 Pakistan is Our Biggest Opportunity 207MN 6 th Biggest Population in the World ~63% Young People Offer Huge Demographic Dividend 139 NARTD servings ~50% Lower than CCI Average 27% NARTD share Potential to Expand NARTD Value Share 51% AVAILABILITY Significant Room for Expansion Source: UN

71 Capturing the Opportunity 1 Grow Sparkling 1 Grow IC Share Accelerating Growth 2 Drive Recruitment & House Hold Penetration Drive Execution & Portfolio 2 3 Increase Cooler Coverage Right Execution Daily 3 Expand NARTD Portfolio 4 Portfolio Innovation Improve RTM & Trade Spend 1 RTM 2.0 Invest for Future Growth 1 2 Optimize Working Capital Capacity Expansion 73

72 Accelerating Growth Grow Sparkling #2 THREE BRAND STRATEGY Global Contibutor to Coke System Growth Continue growing brand Coca-Cola Sprite & Spicy campaign focusing on youth Building Fanta on superior taste 74

73 Accelerating Growth Drive Recruitment and Household Penetration #1 Global Brand Love Score #1 Global Teen Recruitment 50% Significant room to increase frequency Music - Coke Studio Coke & Food Sprite Mixers 200+ ARTISTS 250+ SONGS 75

74 Accelerating Growth Expand NARTD Portfolio ENERGY WATER Two-tier strategy to win in Energy In the last 5 years... Premium Mainstream 76

75 Improve RTM & Trade Spend RTM 2.0 OPTIMIZE CHANNEL DISTRIBUTION ENHANCE TRADE SPEND EFFECTIVENESS OPTIMIZE TRADE SPEND OPTIMIZE DISTRIBUTORS INCREASE RETAIL SPREAD OF VOLUME DISTRIBUTOR REFORMATION 77

76 Drive Execution & Portfolio IC Opportunity and Right Execution GROW IC MIX ENHANCE COOLER COVERAGE & RIGHT EXECUTION 21% IC share Be Available Increase Outlet Coverage 51% Numeric Distribution Be Visible Improve Execution Score 65pts Red Score Significant Potential to Grow IC Be Cold Invest in Coolers 68% Cooler Coverage 78

77 Invest for Future Growth Invest for Future Growth 79

78 Iraq is Back on Track for Growth 38MN +1 million new people/year Accelerating growth through... 67% Young people offer huge demographic dividend 69% Increasing urbanization 74% 82% RTM 2.0 Improve numeric distribution Enhance cooler coverage Source: UN

79 THANK YOU

80 LISANI ATASAYAN Region Director Return of Central Asia

81 Important Energy Hub High Oil Dependence 4 th Largest Proven Natural Gas Reserves Oil & Gas % of Exports Kazakhstan Azerbaijan 78% 94% Turkmenistan 95% 83

82 Kazakhstan Story Sales Volume Oil Price (USD/barrel) USD/KZT Q VOLUME -19% NARTD SHARE -7 pts +300% +13 pts -5% -1 pts +17% +2 pts 84

83 We Were Well Prepared +6,000 New outlets +12 pts. Execution score +10K Coolers placed +100K Racks placed EXECUTION RGM Smart price increases Magic price points Discount management Opex Management Sales Force Discipline Cooler efficiency Cooler verification PRODUCTIVITY PEOPLE Empowerment Capability Development Training 85

84 Central Asia has Abundant Opportunities 278 NARTD servings Low per caps 45% urban % 2017 Increasing urbanization ~55% below age 30 High share of young population 2MN Faster population growth Source: UN

85 Low Per Caps in Central Asia 1,415 1,335 NARTD per cap* Most of our markets are in early stages of growth 1,172 1,082 1, CCI weighted average: * NARTD includes sparkling soft drinks, ready-to-drink tea, energy drinks, juices, packaged water * NARTD per cap per year in terms of number of 8 ounce servings, data as of 2017 CCI s share 87

86 NARTD Value Growth Opportunity NARTD 34% INDUSTRY VALUE GROWTH SPARKLING STILLS 13% 62% +370 mio 6% CAGR E WATER 12% CCI Centrial Asia Value Share Opportunity Source: Nielsen, Canadean and internal estimates, data as of

87 Strategic Priorities to Capture Opportunities OPPORTUNITIES PRIORITIES 1 Low per Caps Increase Household Penetration Inrease Frequency Increase Stills Share Increase Flavoured SSD Share ACCELERATE QUALITY 2 Young Population Teen Recruitment Drive IC Transactions GROWTH 89

88 Low Per Caps Increase Household Penetration & Frequency Increase Flavored Sparkling Share Increase Stills Share Consistently Activate Occasion (Coke & Food, Snacking, Leisure, Football) Sampling (Low/No Sugar) Optimize Package/Price Points 53% Monthly userbase 42% frequency Build Brand Equity Package/Flavor innovation Drive Availability Package/Price Points Regional Approach Build Brand Equity Package/Flavor innovation Dedicated Coolers Drive Availability 90

89 Young Population Teen Recruitment Build Relevance through... Digital Music Football Brands (Sprite/Fusetea) No Sugar Drive IC Transactions Drive recruitment pack availabilty Invest in coolers IC consumer promotions 91

90 With Superior Execution Be Available Increase outlet penetration 78% Increase SKU penetration via segmentation 78% Outlet Penetration Be Cold Additional cooler placement Best place cooler placement in outlet 1.3 Coolers per Outlet 80% Cooler Coverage Be Visible Rack placement for intersection points Additional shelf space +45K Racks in

91 THANK YOU

92 BURAK BAŞARIR Chief Executive Officer Closing Remarks

93 What You Heard Today Proven track record of growth Robust performance across all key markets Abundant potential of demographics Compelling NARTD* growth opportunity CCI has More room to grow in existing markets Strategy, Execution and People to accelerate quality growth Disciplined financial management to deliver stakeholder value *Non Alcoholic Ready to Drink 95

94 THANK YOU