First Quarter 2015 Earnings Conference Call. April 23, 2015

Transcription

1 First Quarter 2015 Earnings Conference Call April 23, 2015

2 Safe Harbor Statement & Non-GAAP Information Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, statements about future events, future financial performance including earnings estimates, plans, strategies, expectations, prospects, competitive environment, regulation, and cost and availability of raw materials. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words may, will, expect, anticipate, believe, estimate, plan, intend or the negative of these terms or similar expressions. These forward-looking statements have been based on our current views with respect to future events and financial performance. Our actual financial performance could differ materially from those projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and our financial performance may be better or worse than anticipated. Given these uncertainties, you should not put undue reliance on any forward-looking statements. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under Risk Factors in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014 and our other filings with the Securities and Exchange Commission. Forward-looking statements represent our estimates and assumptions only as of the date that they were made. We do not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, after the date of this presentation, except to the extent required by applicable securities laws. Non-GAAP Information These materials include certain non-gaap financial measures. Please refer to the Investors section of our website at to find a reconciliation of such non-gaap financial measures to their most direct GAAP counterpart. Definitions Please refer to the Definitions and attachments to our April 23, 2015 earnings release for the definitions of Core Earnings, Core EPS and certain other terms used herein. 2

3 Q1, 2015 Price/Mix Up +1%... Total BCS Volume Up +3% Q1 Volume BCS 1 Change CSD s +3% -1% +4% -3% +8% +15% NCB s +5% +5% +7% -1% +20% Water +9% +20% All Other Flat All Other Flat 1 BCS (Bottler Case Sales) volume as defined in the earnings press release. 3

4 Q1, 2015 Results % Change vs First Quarter Volume (BCS) 3% Net sales 1 5% Segment Operating Profit 1 10% Core Operating Income 2 9% Core EPS 3 9% 1 Currency neutral; reconciliations of non-gaap financial measures can be found under the Investors section of our website at 2 Defined as Income from Operations adjusted for the unrealized mark-to-market impact of commodity derivatives and certain items that are excluded for comparison to prior year periods. 3 Defined as EPS adjusted for the unrealized mark-to-market impact of commodity derivatives and certain items that are excluded for comparison to prior year periods. 4

5 2015 T2 Activation and Innovation 5

6 Other Financial Items Below-the-line items ($ million) Fav/(Unfav) Change vs Q1 Corporate ex. mark-to-market $(1) Commodity mark-to-market changes (13) Net Interest Expense (2) Reported Tax Rate 35.7% Cash Flow ($ million) Q Q Cash from operating activities $101 $129 Capital spending Cash returns to shareholders Dividends Share repurchases

7 Full Year Guidance Net Sales to be up approximately 1% Foreign currency expected to reduce Net Sales by approximately 1% Full year Core EPS $3.80 to $3.88 Foreign currency now expected to reduce Core EPS by approximately 3% Packaging and ingredients expected to decrease total COGS by approximately 1% Tax rate of approximately 35.5% Net Capex approximately 3% of Net Sales Share Repurchases of $500 - $550MM

8 8 Key Takeaways Consistently executing against our strategy Driving awareness and relevance of our brands and innovating to meet consumers evolving needs Focusing on executing flawlessly in the marketplace RCI is driving growth and productivity across the business Remain committed to returning excess cash to shareholders over time

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