Full-year results for the year ended 31 December Dimitris Lois CEO Michalis Imellos - CFO

Transcription

1 Full-year results for the year ended 31 December 2012 Dimitris Lois CEO Michalis Imellos - CFO

2 Disclaimer The information contained herein includes forward-looking statements which are based on current expectations and assumptions about future events. You should not place undue reliance on these forward looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions about Coca-Cola Hellenic including, among other things, macroeconomic conditions and their effect on consumer confidence and disposable income, the effect of acquisitions to our business and financial condition, our relationship with The Coca-Cola Company, currency fluctuations, pricing of raw materials, the impact of future taxation and estimates of capital expenditure. These and other risks are described in Coca-Cola Hellenic s Annual Report on Form 20-F filed with the US Securities and Exchange Commission. As a result, our actual results could differ materially from those anticipated in the forward looking statements. No one undertakes to publicly update or revise any forward-looking statement unless required by law. Unless otherwise specified, all financial information presented herein is based on Coca-Cola Hellenic s IFRS financial statements.

3 3 Delivering on our strategic priorities Continue winning in the marketplace Volume growth for second consecutive quarter Currency neutral revenue growth ahead of volume for sixth consecutive quarter Solid free cash flow generation

4 Financial Review Michalis Imellos Chief Financial Officer

5 Financial performance overview Q4 12 FY 12 YoY YoY Volume (m u.c) % 2,084.7 flat Net Sales Revenue (Eur m) 1, % 7, % Comp. EBIT (Eur m) % % Comp. EBIT margin (Eur m) 3.5% -1.2pp 6.4% - 1.3pp Comparable EPS (Eur) % % Free Cash Flow (Eur m) (21.0) n/a % (*) Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and nonrecurring items. 5

6 Solid top line growth Q4 12 FY 12 Total Coca-Cola Hellenic Volume +2% flat Currency neutral Revenue per case +1% +2% Established Markets Volume -5% -5% Currency neutral Revenue per case 0% -1% Developing Markets Volume +1% -2% Currency neutral Revenue per case 0% +2% Emerging Markets Volume +8% +4% Currency neutral Revenue per case +3% +6% (*) excluding currency translation impact and hyperinflation adjustment in Belarus 6

7 Input Costs continue to have an adverse impact on results Q EU sugar prices remained the key driver of higher input costs Aluminium fully hedged early in the year resulting in y-o-y growth in Q4 PET resin costs declined in the quarter FY 2012 Currency neutral input costs per case grew by mid single-digits Commodity hedging strategy reduced volatility on World sugar costs Our revenue growth initiatives fully offset the increase of input costs in absolute terms 7

8 Administration costs were the key drivers operating expenses growth in the quarter Alternative Slide 1 which is in line with what we have been discussing of OPEX 2012 vs EUROCurrency neutral Operating expenses per case Q Q per case TO BE DISCUSSED Sales & Marketing % Warehouse / Distribution % Administration % Total operating expenses % (*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and non-recurring items. Discrepancies in growth rates are due to rounding. 8

9 We continue to focus on increasing operating efficiency Alternative Slide 2 to use going forward instead of OPEX per case TO BE DISCUSSED Q4 12 FY 12 YoY YoY Net Sales Revenue (Eur m) 1, % 7, % COGS other (Eur m) % % Comp. Operating Expenses (Eur m) % 2, % OPEX as % of NSR 31.1% +5bps 29.4% -60bps (*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and non-recurring items. Discrepancies in growth rates are due to rounding. 9

10 Emerging markets were the main drivers of operating profitability in the fourth quarter Comparable EBIT in million Euros YoY -29% n/a +14% -22% 10

11 Restructuring costs FY 2012 recap Total 107m in pre-tax restructuring charges Total benefits in 2012 (from 2011 and 2012 actions) were approximately 48m Approximately 70m annualised benefits from 2013 onwards FY 2013 targets Expect pre-tax restructuring charges of 50m Total benefits in 2013 (from 2012 and 2013 initiatives) expected at 65m Related benefits expected at 30m on an annualised basis 11

12 Free Cash Flow, Working Capital in million Euros FY vs 2011 Adjusted EBITDA* 758 (95) Decrease in Working Capital Net capital expenditure (412) (11) Free Cash Flow (FCF) 341 (86) in million Euros Q vs 2011 Adjusted EBITDA* 100 (41) Decrease in Working Capital 19 (3) Net capital expenditure (122) (11) Free Cash Flow (FCF) (21) (45) 12

13 Diversified financial profile Debt maturity profile Other available facilities (Undrawn) in million Euros $ $ m Revolving Credit Facility until m bridge loan to payback upcoming bonds m bridge loan to finance squeeze-out 13

14 2013 Financial outlook Input Costs: Expect low single-digits increase FX : Headwind based on current spot rates, but of lower magnitude than 2012 Comparable Effective Tax Rate: between 23-25% in the medium-term Capital expenditure: % of net sales revenue in the medium-term Free Cash Flow: Expect to generate 1.3bn in the period 14

15 Operational Review & Strategy Dimitris Lois Chief Executive Officer

16 Q4 11 Established Developing Emerging Q4 12 Volume in Q4 grew for the second consecutive quarter 2% volume increase in Q4 +8% -5% +1% (*) excluding currency translation impact and hyperinflation adjustment in Belarus 16

17 We continued to win in the marketplace Gained or maintained sparkling volume share in 21 markets Gained or maintained NARTD value share in 23 markets 17

18 Premium Sparkling grew by 5% Brand Coca-Cola grew by 5% Coca-Cola Zero grew by 17% Fanta grew by 3% Sprite grew by 8% Energy grew by 14% Tea grew by 6% Water declined by 6% Juice grew by 1% Multon grew volume by 21% Solid volume growth in Q4 driven by key brands 18

19 2012 Innovation Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi Nigeria: Light-weight PET bottle water Nestea Green Tea with Stevia Fanta Grape Dobry Leaf TetraPak Rosa Plant bottle Dobry Pulpy Cappy Pulpy 19

20 Established markets still challenged Trademark Coca-Cola -4% Coca-Cola Zero +11% Water -4% Volume contribution Austria 11% Switzerland 12% Island of Ireland 11% Greece 18% Cyprus 2% Italy 46% Italy: Volume declined by mid single-digits in the quarter, with Coca-Cola Zero up by high-teens. Economic conditions remain challenging Greece: Volume declined by mid-teens in Q4. Sparkling beverages and particularly Trademark Coca-Cola shows more resilience Switzerland: Volume declined by mid single-digits in Q4; Coca-Cola Zero grew by mid single-digits in Q4 Ireland: Volume declined by mid single-digits in Q4; package mix improved, driven by sparkling beverages (*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and unrealised commodity hedging results. 20

21 Volume in developing markets is driven by core sparkling beverages Trademark Coca-Cola +7% Fanta +10% Sprite +14% Volume contribution Baltics Slovenia 6% 2% Slovakia 6% Croatia 7% Czech Rep. 15% Poland 42% Poland: Volume increased by mid single-digits in Q4. Core sparkling were the main volume drivers, growing by low double-digits Hungary: Volume declined by mid single-digits in Q4. Coca- Cola Zero grew by double-digits in the quarter Czech Rep.: Volume declined by low single-digits, due to water. Core sparkling grew by mid single-digits in Q4 Hungary 22% (*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and unrealised commodity hedging results. 21

22 Emerging markets remain the growth driver Trademark Coca-Cola +13% Fanta +7% Sprite +12% Volume contribution Bulgaria 5% Other 6% Ukraine 9% Serbia & Montenegro 9% Romania 16% Nigeria 18% Russia 37% Russia: Volume increased by mid-teens in Q4. Growth in the quarter was broad-based with all categories showing volume increase year-over-year Nigeria: Volume grew by high single-digits in Q4, driven by sparkling and particularly Coca-Cola regular which grew in the low-teens Romania: Volume increased marginally in Q4, on the back of a mid single-digits increase in core sparkling Ukraine: Volume declined by low single-digits in Q4; sparkling beverages grew by low double-digits (*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and unrealised commodity hedging results. 22

23 External environment remains challenging Economic slowdown & Currency volatility Unemployment & Low consumer confidence Low disposable income 23

24 Our Strategy Winning in the marketplace Revenue ahead of volume Cost leadership Generate solid Free Cash Flow 24

25 Winning in the marketplace We are number 1 in sparkling beverages in all of our 28 markets In 2012 we outperformed our main competitor in total NARTD across all our 28 countries 25

26 Package mix- Channel Mix: Driving revenue per case priority * * 40% 60% Immediate Consumption 30% Future Consumption 70% (*) FY2011 Volume Split 26

27 Optimising our cost base to enhance competitiveness Infrastructure optimisation Logistics excellence SAP is a key enabler Manage OPEX and Working Capital 27

28 Use of Cash Re-invest in the business to drive volume and revenue growth M&A opportunities with compelling strategic rationale for our business portfolio Return value to our shareholders in an efficient way [Dividend policy, gearing ratio etc. to come] 28

29 Update on transaction [Indicative topics that could be discussed in May] Progress of squeeze-out process Cash option take-up Debt facility draw-down 29

30 Long-term growth drivers Most known brands in the world! Low per capita consumption with great potential to grow Diverse geographic footprint with strong emerging market exposure Solid track record of winning in the marketplace Strong focus on cost leadership and history of solid cash generation 30

31 For further information on Coca-Cola Hellenic please visit our website at: or contact our Investor Relations team