Reasons to Believe IR OVERVIEW 2014

Transcription

1 Reasons to Believe IR OVERVIEW 2014

2 2 Forward-Looking Statements This presentation may contain statements, estimates or projections that constitute forward-looking statements as defined under U.S. federal securities laws. Generally, the words believe, expect, intend, estimate, anticipate, project, will and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company s historical experience and our present expectations or projections. These risks include, but are not limited to, obesity and other health concerns; water scarcity and poor quality; changes in the nonalcoholic beverage business environment and retail landscape; increased competition; increased demand for food products and decreased agricultural productivity as a result of changing weather patterns; consolidation in the retail channel or the loss of key retail or foodservice customers; an inability to expand operations in developing and emerging markets; fluctuations in foreign currency exchange rates; interest rate increases; an inability to maintain good relationships with our bottling partners; a deterioration in our bottling partners' financial condition; increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters; increased or new indirect taxes in the United States or in other major markets; increased cost, disruption of supply or shortage of energy or fuels; increased cost, disruption of supply or shortage of ingredients, other raw materials or packaging materials; changes in laws and regulations relating to beverage containers and packaging; significant additional labeling or warning requirements or limitations on the availability of our products; an inability to protect our information systems against service interruption, misappropriation of data or breaches of security; unfavorable general economic conditions in the United States; unfavorable economic and political conditions in international markets; litigation or legal proceedings; adverse weather conditions; climate change; damage to our brand image and corporate reputation from product safety or quality, human and workplace rights, obesity or other issues, even if unwarranted; changes in, or failure to comply with, the laws and regulations applicable to our products or our business operations; changes in accounting standards; an inability to achieve our overall long-term goals; continuing uncertainty in the global credit markets; one or more of our counterparty financial institutions default on their obligations to us or fail; an inability to realize additional benefits targeted by our productivity and reinvestment program; an inability to renew collective bargaining agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages or labor unrest; future impairment charges, including charges by equity method investees; multi-employer plan withdrawal liabilities in the future; an inability to successfully integrate and manage our Company-owned or -controlled bottling operations; global or regional catastrophic events; and other risks discussed in our Company s filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2013 and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements. Reconciliation to US GAAP Financial Information The following presentation may include certain "non-gaap financial measures" as defined in Regulation G under the Securities Exchange Act of A schedule is posted on the Company's website at (in the Investors" section) which reconciles our results as reported under General Accepted Accounting Principles and the non-gaap financial measures included in the following presentation.

3 3 We Are Uniquely Positioned to Capture the Growth Opportunity

4 Global Beverage Industry Growth is Fueled by Macro Trends Growth in Urban Population in Personal Expenditure Per Capita* Increase Growth in Middle Class Billion Teens Today * Source: IHS Global Insights 4

5 We Live in a Thirsty World Projected Value Growth CAGR NARTD 5.8% Beauty and Personal Care 5.2% Home Care 4.6% Packaged Foods 4.6% Since 2010, NARTD Retail Value has increased by $135B and is expected to grow more than $300B by 2020 Source: Euromonitor; NARTD excludes milk 5

6 Not a One Size Fits All Approach Developed Markets Driving Profitable Growth Through Innovation and Productivity Developing Markets Maximizing Value Through Segmentation Building Customer Loyalty NARTD Retail Value Growth >$300 Billion ( ) Emerging Markets Maximizing Volume Investing for Accelerated Growth 6

7 We Have a Broad and Growing Portfolio of Brands 7 Schweppes is owned by the Company in certain countries other than the U.S.

8 We Have the World s Strongest System Brands in Countries Thousand Global System Employees Top 10 Private Employer Nearly Bottling Partners Billion Servings Every Day Million Outlets 8

9 We Have a Clear Roadmap for Winning with Our Bottling Partners 2020 vision transition slide 9

10 Our 2020 Vision Sets High Expectations Our Mission Our Vision Our Goals Our System Priorities Our Metrics Create value and make a difference Profit More than double system revenue while increasing system margins Maximize Company and bottler long-term cash flow Economic profit growth 10

11 We Invest Through a Value Lens to Drive Long-Term Profitable Growth Economic Profit Growth Target 10%+ CAGR Long-Term Growth Targets * 6-8% High Single Digits 5-6% 3-4% Volume Net Revenue OI EPS *Comparable Currency Neutral 11

12 2013 Volume Fell Short of Our Expectations Volume EPS * Target 5% 2% % 8% FX Impact 0% -4% * Comparable Currency Neutral 12

13 We Continue to Refresh Our Shareowners Cash from Operations Nearly Billion Value Returned to Shareowners $3.5B $2.8B $3.1B $1.3B $4.1B $4.3B $4.6B $5.0B Years of Consecutive Annual Dividend Increases 2014 Net Share Repurchases $2.5-$3B Net Share Repurchases Dividends 13

14 Our Cash Priorities 1 2 CAPEX $2.5 to $3 Billion in 2014 Invest Behind Our Brands 52 Consecutive Years of Annual Dividend Increases 9% Increase in 2014 $5 Billion in 2013 SUSTAINABLE VALUE CREATION 4 Net Repurchases of $2.5 to $3 Billion in Accelerate Growth and Efficiency Through Acquisitions and Partnerships Across Our Supply Chain 14

15 Our Five Strategic Priorities TRANSITION PAGE 5 Strategic Priorities 15

16 Five Strategic System Priorities to Restore Momentum 1 Accelerate Sparkling Growth, Led by Coca-Cola 2 Strategically Expand Our Profitable Still Portfolio 3 Increase Brand Investments by Maximizing Productivity 4 Win at the Point of Sale by Unlocking the Power of the System 5 Invest in Our Next Generation of Leaders 16

17 The Future is Sparkling 1 Beverages * #1 Value Pool in NARTD Today #1 Value Growth in NARTD to 2020 More than $100B Retail Value Growth Today to % CAGR Since 2009 More than 1.1B Incremental Unit Cases Since % CAGR Since 2009 #1 Brand in Both China and India +3% CAGR Since 2009 More than 2 Billion Unit Cases Sold in 2013 * Source: Euromonitor and internal estimates 17

18 We Are Driving Innovation 1 For Today Coca-Cola Life in Argentina 84% Awareness 76% Incremental Volume Bringing People Back into the Category PlantBottle More than 20B Distributed in 28 Countries Freestyle Double-Digit Increase in Servings 4-5% Increase in Customer Visits For Tomorrow Natural Zero-Calorie Sweeteners Entry Level Packaging 192 ml / 6.5 oz 18

19 Strategically Expanding Our Profitable Still Portfolio 2 Growing Our Billion Dollar Still Brands Building Breadth Across New Categories Building Depth Within Our Portfolio 19

20 Our Juice and Juice Drinks Portfolio is Strong 2 20

21 We Are Further Expanding Our Global Marketing Network 3 21

22 Feet On The Street Immediate Consumption We Are Winning at the Point of Sale 4 Right Execution Daily $50B+ Global System Investments RED Customer Partnerships 22 22

23 We Are Investing in Our Leaders 5 Building Bench Strength Enhancing Capabilities Promoting Women in Leadership of Global Leaders Are Women 23

24 24 Our Reach is Truly Global and Truly Local

25 A Truly Global Business North America 21% of Total Company Unit Cases 24% of Total Company Operating Income 0% FY 2013 Volume Growth Europe of Total Company Unit Cases of Total Company Operating Income -1% FY 2013 Volume Growth 14% 28% Latin America of Total 29% Company Unit Cases of Total Company 28% Operating Income +1% FY 2013 Volume Growth Eurasia & Africa 1 of Total Company 15% Unit Cases of Total Company 11% Operating Income +7% FY 2013 Volume Growth Asia Pacific of Total 21% Company Unit Cases 24% of Total Company Operating Income +3% FY 2013 Volume Growth Note: Total Company Operating Income on this page totals >100%, as it does not reflect Corporate expenses. 25

26 Europe: Future Growth Opportunities Despite Headwinds Europe s NARTD Industry Retail Value Growth Billion Europe Group Top 3 Sparkling Brands Opportunity for Volume and Value Share Gains Largest NARTD Retail Value Pool 26

27 Asia Pacific: A Tale of Two Worlds Growing Together 2013 Volume Growth Rates India +4% China +3% Thailand +9% Vietnam +25% Indonesia +10% Developed GDP Per Capita Emerging GDP Per Capita ~$35K ~$6K 27

28 Eurasia & Africa: A Solid Foundation to Capture Growth NARTD Industry Volume Growth NARTD Industry Retail Value Growth #1 Sparkling #1 Juice & Juice Drinks #2 Water #2 Tea #2 Sports Drinks 28

29 North America: Executing Our Consistent Strategy to Win in this Profitable Market Our Strategy Build Strong Brands Translate Brand Value into Customer Value Invest in Capabilities to Sustain & Repeat Our Market Expanding Population Favorable Demographics Vibrant NARTD Business 2013 Full Year Sparkling Still Sports Drinks Teas Juice/Juice Drinks Energy NARTD Volume Share Value Share 29

30 Latin America: We are Delivering Sustainable and Balanced Growth 4-Year Volume CAGR % 4% 4% 4% 6% Latin America Group Latin Center Mexico Brazil South Latin 30

31 Bottling Investments Group and CCR Continue to Evolve 31 Largest Global Bottler 19 Markets > 25% of System Volume ~115K Employees CCR: Coca-Cola Refreshments Company-Owned Bottlers Nidan Juice Company Management/Oversight Role Recent Bottling Divestitures

32 BIG is a Growth Accelerator for the System Provide Strategic Market Leadership to Drive Growth Act as Venture Capitalist to Move Quickly into a Market Resolve Ownership and Management Changes Structural or Philosophical Create Long-Term Sustainable Growth Act as a Model of Collaboration with Other Bottlers 32

33 We Build Sustainable Businesses We Manage the Business for the Long Term Key Metrics: OI, EBITDA, Economic Profit, Margin Improvement, Volume AND Value Share Committed to Refranchising Finding the Right Partner is Key Aligned, Long-Term Strategy for the Business Proven Management Team with Capabilities in Market Environment Financial Flexibility and Willingness to Invest in the Business Strong Culture / Engagement 33

34 Unwavering Belief in Our 2020 Vision

35 35 Our 2020 Vision Remains Clear