Corporate Presentation

Transcription

1 Corporate Presentation 2015

2 Presentation 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.

3 One of the most profitable companies in the Industry +20% EBITDA margin Sustainable Dividend Pay Out Ratio + 50% Last 4 years Net Debt to EBITDA of 1.7x 3

4 A geographic balanced business portfolio 12% 13% 52% 2015* 16% 7% Revenues by Business Unit *Pro forma Sales 2015 (MXP): $82,442 4

5 Coca Cola as a solid partner in our business structure Arca Continental Control Group 71% Float BMV: AC* 20% The Coca-Cola Company 9%

6 Best in class Corporate Governance Balanced Board of Directors (20 members, 5 independent) Majority shareholders only 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

7 Successful brand portfolio to satisfy every consumption occasion Brands SKUs 7

8 Bokados Mexico Inalecsa Ecuador Argentina US Investments focused on incremental volume initiatives Coolers Glass & Ref-Pet bottles IT New Facilities 2% 6% 14% 21% CAPEX 2015 Mxp$5,200 Million 56% 1%

9 M&A Solid inorganic growth 2002 Arca Merger 2007 Snacks Mexico and Vending 2008 Argentina & Jugos del Valle 2010 Ecuador 2011 Contal Merger 2012 Snacks Intl. & Santa Clara 2013 Nogales ToniCorp 9

10 10 The power of knowledge Consumer & Customer Insights Segmentation Price & Package Architecture Shopper solutions RGM

11 Arca Continental Territories Mexico Argentina Ecuador Start date: 1926 Sales volume (MUC) 1,000 % KO volume 30 Population served (MM) 30 Start date: 2008 Sales volume (MUC) 141 % of KO volume 21% Population Served (MM) 9 Start date: 2010 Sales volume (MUC) 149 % of KO volume 100% Population Served (MM) 15 Start date: 2015 Sales volume (MUC) 281 % of KO volume 100% Population served (MM) 31 11

12 Mexico s opportunity is to develop still beverages portfolio 7% 10% 2% S-Markets 11% On Premise Vending Flavors Channel 14% C-Stores 7% Other 17% Jug 6% Stills Category 4% Water 60% Traditional 62% Colas Format 48% Single-serve 52% Multi-serve 38% Returnable 62% Non Returnable Package 12

13 Promoting the consolidation of the KO System in Latin America 13 CDF Nogales Nayar Colima AC AC Rica KOF KOF Bepensa Acquired 25% minority stake in Bebidas Refrescantes de Nogales in northern Mexico Proximity of our territories allows further opportunities for synergies and find better ways to serve

14 Argentina focusing on develop still beverages, single serve & cooler coverage 2% On Premise 20% S-Markets 1% C-Stores 31% Other 26% Flavors 1% Stills 8% Water Channel Category 8% Single-serve 46% Traditional Format 65% Colas 92% Multi-serve Package 42% Returnable 58% Non Returnable 14

15 Ecuador developing cooler coverage & returnable single serve 7% S-Markets Channel 13% On Premise 1% C-Stores 14% Other 30% Flavors Category 11% Stills 10% Water 65% Traditional 49% Colas Format 29% Single-serve 20% Returnable 71% Multi-serve Package 80% Non Returnable 15

16 Strong single-serve mix and returnable base 2% Wholesalers 4% S-Markets 8% On Premise 9% C-Stores % Jug 6% Stills 16% Water Channel 10% Other Category 58% Traditional 74% CSDs 40% Single-serve 60% Multi-serve Format Package 31% Returnable 69% Non- Returnable 16

17 We have delivered outstanding results in South America Consistently creating value in Argentina, EBITDA when acquired: Usd$95 million in 2010 to Usd$185 million in 2014 Increasing execution and cooler coverage. Argentina 45%, +20 p.p. Ecuador 47%, +26 p.p. All CAPEX investments made from cash generated from operations 11 percentage points market share gain in Argentina 17

18 Strong brand portfolio (2007) (2013) (2013) 3rd largest snack brand in Mexico, 40 year history Sales tripled in six years Plan to expand nationwide One of the largest distribution networks Over 90 years history Leading regional brand #1 brand in NY metro area USD$7 billion market size in regions served 40 year history Strong position in the Ecuadorian market 2nd largest player at a national level

19 High potential growth opportunity bases on strategic adjacencies to our Core USD$ 350 MM in 2014 (8% of Revenues) Complementary to our core business Expand snack business in Mexico under Bokados and complements with Wise Strengthen our presence in the US and Ecuador 19

20 An aggressive Direct to Home expansion is building loyalty with our consumers DTH SALES (MUC) % 4.5 DTH ROUTES % Leverage our Jug water business to sell other categories Jug Water currently reach 900,000 households Opportunity to introduce new categories and brands

21 Exports capitalizes a $104 MM USD growing market +6x vs 2005 Exports Coca-Cola (Nostalgia)

22 22 Performing is worthless without respecting our environment RECYCLING WATER ENERGY 38% of PCR 26,000 Tons of resin consumed Water Lts. / Beverages Lts. 14% vs 2010 Goal of 1.5 Water LTS. / Beverages Lts G CO 2 / Beverages Lts. 11,000 MWH Savings in 2014 ** 2014 **2014 **2014

23 Key Takeaways Clear Vision and excellence in execution Track record in creating shareowner value Financial strength and flexibility World-class Corporate Governance and professional management team Best-in-class production and distribution capabilities Solid M&A and integration capacity, delivering synergies Sustainability and Social Responsibility

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