Corporate Presentation

Transcription

1 Corporate Presentation 1

2 Disclaimer During this presentation management may discuss certain forward-looking statements concerning Arca Continental s future performance that should be considered as good-faith estimates made by the Companies. These forward-looking statements reflect management expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact Arca Continental s actual performance. 2

3 An important bottler globally Billion unit cases 4 th Arca Continental is the world s 4th largest Coca-Cola bottler and one of the most profitable 2.6 KOF 1 Arca Continental represents a third of Coca-Cola s sales volume in Mexico Leadership in NARTD market and relevant position in other categories Hellenic CCE Arca Continental * Growing portfolio in sparkling & still beverages Swire Icecek 2011 pro forma volume NARTD: Non Alcoholic Ready To Drink 3

4 Arca Continental has a varied portfolio and geographic balance Argentina 132 Argentina 6,473 Exports to USA Ecuador 139 Volume* (MUC) Ecuador 4,990 Sales* (Mxp) Mexico 1,039 Mexico 39,464 Total Volume: 1,310 Total Revenues: 50,927 Mexico Argentina Ecuador Total Plants Dist. Centers Population (MM) Routes 3, ,232 POS s (M) Employees (M) * 2011 pro forma 4

5 A year ahead of the Merger, Arca Continental is a better Company New culture and philosophy with a clear vision ahead Retention of Human Talent Standardized best practices Synergies on-track 5

6 Ownership Structure 74.9% Arca Continental Control Group 16.5% Publicly-Traded BMV: AC 8.6% The Coca-Cola Company 6

7 Best in class Corporate Governance Professional Management Team focused on growth and value creation Corporate Governance: Balanced Board of Directors (20 members, 5 independent) Majority shareholders at Board level The Coca-Cola Company appoints one member of the Board Audit Committee comprised of independent members only No transactions with related parties Quarterly financial reports and constant contact with investors and analysts 7

8 Debt profile: Responsible financial policies Financial flexibility Long-term Debt Maturity (million of pesos) Strong Balance Sheet Among the highest dividend payout ratios in Mexico $2,100 $1,900 $2,500 $2,000 Strong CAPEX program $1,000 Rated AAA by S&P and Fitch Net Debt/EBITDA ratio 0.8x Excellent debt terms with low costs Responsible investment and risk management policy Weighted Average Cost of Debt 7.18% 8

9 Bokados has increased presence throughout Mexico Net Sales (millions of pesos) ,100 1,170 27% 15% 6.4% September 38.4% Plants Distribution Centers 3rd largest Snacks brand in Mexico Potential to grow nation-wide and across other Countries Independent business Separate professional management Co-branding initiatives One of the largest distribution networks in Mexico 21 21

10 Value Added Retail Business Second largest vending machine operator in Mexico 42K by the end of 2014 Price/Mix architecture TI-supports execution Location is key to the success of this business X2 Roll out in Mexico Hybrid, beverages and jug routes Added value consumer & brand Call center Clients Volume 22 22

11 Social Responsibility and Sustainability as a fundamental aspect of our DNA Environmental culture and management system Human Capital and community development Competitiveness and share value Water Energy Packaging Waste management Sustainable Building Biodiversity Human Capital Development Volunteer Program Active Lifestyle Education Community Outreach Comprehensive Growth of Society Employment Profitability Value Chain Sustainable Development 25

12 Sustainability distinction achieved in in Mexico and foreign countries Recognized for 9 consecutive years by the Centro Mexicano para la Filantropía Annual reports comply with Global Reporting Initiative, the highest and most recognized methodology in this matter Compliance with Coca-Cola s Sustainability Scorecard Adhesion to The Global Compact, which focuses on human and labor rights Meet information requirements of the Mexican Stock Exchange in terms of best practices in 4 main areas; environment, governance, community and labor 26

13 Leveraging results of long-lasting capital investments to be more competitive $3,300 MM MX CAPEX 2012e Market: - Coolers - Racks - Package - Glass & Ref-Pet bottles Logistics PetStar Environmental Infrastructure Engineering IT & other 27

14 MEXICO 28

15 Arca Continental in Mexico Nogales CDF Mexico Volume 2011 (MUC) Sales 2011 (Mxp Billion) % of KO volume Plants Distribution centers Population (million) Territory (000 km 2 ) Local Currency 1, ,030 Ps. Nayar KOF Rica Bepensa Colima Yoli 29

16 Mexico: Balanced product mix, package/format and distribution channels 1% Vending 9% Other 12% On Premise 49% Single Serve 6% S-Markets 12% Convenience Stores Channel 60% Traditional Format 51% Multi Serve 4% Still 17% Jug 36% Returnable 5% Water * 2011 Sales Volume 12% Flavors Category Colas 62% Package 64% Non Returnable 31 31

17 SOUTH AMERICA 33

18 Argentina Start date Volume 2011 (MUC) Sales 2011 (Usd million) % of KO volume Plants Distribution centers Population (millions) Territory (000 km 2 ) Local Currency PsAr. Ecuador Salta Jujuy Catamarc a La Rioja Formosa Tucumán Chaco Santiago Estero Corrientes Misiones Start date Volume 2011 (MUC) Sales 2011 (Usd million) % of KO volume Plants Distribution centers Population (millions) Territory (000 km 2 ) Local Currency Usd. 34

19 Growth in sales and profitability Volume Sales EBITDA 271 MUC $ % vs. PY MM USD +35.4% vs. PY $135 MM USD +34% vs. PY Sparkling 237 MUC +6.5% vs. PY Net Sales (millions of USD) EBITDA (millions of USD) 135 Still Beverages 22 MUC +69.4% vs. PY Single Serve Water MUC % vs. PY 15% 28% % 29%

20 Single Serve and Returnable format mix improving Package/ Format 6% Single-Serve 11% Single-Serve 94% Multi-Serve % Multi-Serve 55% Non returnable 45% Returnable Returnability % Non returnable 49% Returnable 36

21 Single Serve mix improving Package Format 25.9% Single-serve 26.5% Single-serve 74.1% Multi-serve % Multi-serve Returnability 19% Returnable 19% Returnable % Non Returnable 81% Non Returnable 37 37

22 Reasons to invest in Arca Continental Balance sheet strength and financial flexibility World-class Corporate Governance Strong & sustained cash flow generation Professional management team with proven track record Top Investment grade rating (S&P and Fitch) Consistent market share with growth in volume and value share Consistent and attractive Leading dividend payout ratio Solid history of growth top and bottom line Disciplined Capex and Acquisition Approach A Socially Responsible company with the community and its environment 46

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