London Roadshow February Doros Constantinou,, CEO Nik Jhangiani, CFO

Transcription

1 London Roadshow February 2008 Doros Constantinou,, CEO Nik Jhangiani, 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, its future financial position and results, the effects of recent acquisitions to its business and financial condition, future dealings with TCCC, budgets, projected levels of consumption and production, projected raw materials and other costs, future taxation, estimates of capital expenditure and plans and objectives of management for future operations. These and other risks are described in Coca-Cola Hellenic s Annual Report on Form 20-F filled 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. 2

3 Agenda Coca-Cola Hellenic at a glance Further growth opportunities for Hellenic Appendix: latest financials 3

4 Coca-Cola Hellenic is the largest Coke bottler in Europe We are the 2 nd largest bottler in revenue terms and the 3 rd largest bottler in volume terms in the world We operate in 28 countries, 16 of which are part of the EU We address the needs of over 550 million consumers We operate 79 plants We serve 1.4 million customers Coca-Cola Enterprises Coca-Cola Hellenic Coca-Cola Femsa Coca-Cola Amatil 2007 sales $20.9 BN Mk cap $11.8 BN Enterprise value $21.0BN 2007 sales $9.5 BN Mk cap $15.4 BN Enterprise value $17.6BN 2007 sales $6.4 BN Mk cap $9.9 BN Enterprise value 11.1 BN 2007 sales $4.1 BN Mk cap $6.5 BN Enterprise value $8.2 BN Source: Bloomberg, Company information Note: Bottlers may not serve 100% of the country area shown on map, Market cap & EV data as of 20 February

5 Coca-Cola Hellenic has a diverse investor base Coca-Cola Hellenic Shareholder Structure The Coca-Cola Company 24% 30% Kar-Tess Group 46% Free Float Listed on Athens, New York, London and Australian stock exchanges More than two thirds of free float held by UK and U.S. institutional investors. Low shareholder concentration top 10 investors account for only 26% of free float Listed in FTSE4Good Index since formation Coca-Cola Hellenic s size, balanced geographic coverage and growth profile has attracted a diverse investor base 5

6 Delivering consistent profitable growth Volume million u.c. CAGR=9% 1,185 1,268 1,359 1,413 1,578 1,788 2, EBITDA CAGR=14% EBIT million CAGR=20% Return on Invested Capital % Note: Financial indicators (EBIT, Net profit) include the results of the acquired entities and exclude the recognition of pre-acquisition tax losses, restructuring costs, exceptional items and, up to 2004, the amortisation of indefinitely-lived intangible assets. 6

7 Agenda Coca-Cola Hellenic at a glance Further growth opportunities for Hellenic Appendix: latest financials 7

8 Coca-Cola Hellenic s unique platform for growth Creating economic value for our shareowners Balanced portfolio of countries Diverse product range Unrivalled marketplace execution Disciplined cost management Coca-Cola Hellenic growth enablers: Marketplace execution rooted in the 4 A s Excellence Across the Board initiative SAP implementation to enhance customer serve levels 8

9 Broad geographic coverage with exposure to higher growth markets Established Developing Emerging Established markets Developing markets Emerging markets Austria, Cyprus, Greece, Italy, Northern Ireland, Republic of Ireland and Switzerland Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia Armenia, Belarus, Bosnia & Herzegovina, Bulgaria, FYROM, Moldova, Montenegro Nigeria, Romania, Russia, Serbia and Ukraine 2007 Market Split Volume 34% 19% 47% Total = 2,019 MM u.c. Net sales revenue 41% 18% 41% Total = MM EBIT 42% 16% 42% Total = 703 MM 58% 9

10 Offering a diverse product range for our consumers Water 6% Other non-csds 4% Juice 11% Tea 4% Coca-Cola 34% ,185m u.c Water 21% ,019m u.c CSDs 90% Other non-csds 1% Other CSDs 6% Note 1: Includes 100% of Multon and Fresh & Co volume Light/ diet CSDs include Diet/ Light Coca-Cola, Coke Zero, Sprite Zero, Fanta Free Sprite 6% Fanta 11% Light /diet CSDs 6% Non-carbonated beverages represented 37% of total volume sold in 2007 compared with only 10% in

11 Innovation and rising per capita consumption driving growth in CSDs Growth in 2007 (%) 2006 CSD servings per capita Carbonated soft drinks +7% Established 54% 264 Coca-Cola Trademark +8% Developing 36% Emerging 37% Light CSDs +21% CCHBC Pepsi Other Source: Canadean, Coca-Cola Hellenic Note: Market shares weighted by population W. Europe ca. 307 U.S. ca. 742 Unparalleled growth potential in our markets as economies strengthen Light CSDs account for 10% of total CSD volume Launch of Coke Zero in more markets in 2008 will support further growth of light CSDs and the Coke trademark 11

12 Strong platform for accelerating growth in the juice category Flavour extensions Packaging Innovation Marketing & Activation Added-Value Amita Cocktail with Acai Berry Cappy Ice Fruit Strawberry Mix Re-sealable pouch pack Prisma pack Integrated marketing communication Orange Apple Tomato Cherry Diva juice range Amita Biscuit Fruice Smoothies 250ml glass bottle In-store Execution Excellence Amita EY ZYN Cost optimisation/ regional capacity management Fruice Vital Omega 3 12

13 Significant opportunities for further market share gains in juice Hellenic s juice market share development ( ) 2006 Juice servings per capita (total market) Hellenic s market share by country 5.5% 11.9% Ukraine % Italy 68 Greece 81 Russia 82 Poland 165 UK 169 Opportunity 1.7 Bn UC 0.8% 77.3% 22.2% 1.4% Germany USA 232 Hellenic has more than doubled its juice category market share since 2000 Hellenic s lower relative market juice per capita consumption offers further room for growth Source: Canadean 13

14 Driving increased value across our water portfolio Value-added packaging Avra Bloom Bankia Glass Bottle Avra Sports Cap Enhanced waters Romerquelle Emotion Deep RiverRock water flavours Integrate water acquisitions Fonti del Vulture, Italy Over the past 5 years we have acquired 8 mineral water companies and developed mineral water brands where appropriate 14

15 Expanding premium product offerings in ready-to-drink tea and coffee Nestea Vitao Nestea is the leading brand in value terms in Europe Nestea is #1 brand in 11 countries across Hellenic s territory Nestea Vitao launch in 2008: Nestea s new premium range Available in a range of 3 fruit flavors Natural antioxidants Ready-to-drink Coffee Three-way joint venture together with Illycaffe and The Coca-Cola Company Global category valued at $10bn Illycaffe - world class coffee expertise Leverage strength of Hellenic s expanding distribution network Growth in higher value beverage categories will support profitability 15

16 Excellence in marketplace execution Unbeaten at the 4 A s Route-to-Market Availability Affordability Acceptability Activation Leveraging distribution scale Customer-centric Capabilities Selective Vending Channel expansion Amita Motion Energy bars Tsakiris chips Beer distribution Spirits distribution 16

17 Focus on growing the higher margin immediate consumption channel Increased cooler penetration 2007 Package volume mix Total number of cooler doors millions Immediate Consumption 41% Future Consumption 59% Cooler doors per 1,000 people Excluding Nigeria Expansion of higher revenue categories Revenue per case index Coca-Cola Hellenic avg Emerging Developing Established CSD Water Juice RTD Tea Sport Drinks Energy Drinks 17

18 Focus on creating economic value for our shareowners % % E co n o m ic P ro fit (R H S ) R O IC (L H S ) % % ROIC (%) % 8.0 % 6.0 % 4.0 % % % % Economic Profit (EUR MM) 2.0 % 0.0 % 3.9 % 5.2 % Further potential to increase returns through: Investment focused on higher revenue generating activities e.g. new production capacity/ coolers Realise further operational cost savings e.g. product cost efficiencies, centralised functions Manage regional production capacity Infrastructure optimisation/ rationalisation ROIC is expected to increase +75 basis points per annum 18

19 2008 and Long-term growth guidance 2008 GUIDANCE LONG-TERM GROWTH MODEL Volume approx. 7% Volume 5%-6% EBIT 11%-13% EBIT 11%-13% EPS 12%-15% EPS Low to mid teens ROIC improvement of 75 basis points CAPEX: Recurring spend of approx. 550m Additional SAP investment of 130m over next 3 years ROIC improvement of approximately 75 basis points per annum 19

20 Growing responsibly to support a sustainable business Marketplace Workplace Environment Community Responsible sales & marketing GDA label roll-out New plant openings in Crete & Nigeria Aquavision plant acquisition Serbia Employer of Year award OHSAS implementation Recognised as Notable Reporter by UN Global Compact Agreement signed for 15 Combined Heat & Power plants PET2PET recycling plant in Austria Signed Bali Communique on Climate Change Emergency aid in Greece & Romania Danube day Living Volga partnership with UNESCO Kropla Beskidu partnership fund in Poland Further details on our sustainability goals and initiatives can be found at 20

21 Pioneering energy-efficient technology to reduce Hellenic s carbon footprint Combined Heat & Power Plants 15 energy-efficient power plants across 12 countries of operation Plants will be operational by end %-95% energy efficiency compared with 30%-60% using conventional forms of energy Each plant expected to lead to 40% reduction in CO 2 emissions of bottling facility Expected energy cost savings Dunaharaszti Plant, Hungary 43% reduction of CO 2 omissions Energy cost savings of 400,000 p.a. Initiative is expected to reduce Hellenic s overall CO 2 emissions by more than 20% 21

22 Agenda Coca-Cola Hellenic at a glance Further growth opportunities for Hellenic Appendix: latest financials 22

23 Maintaining continued strong momentum 2007 Full Year Growth (%) Volume +13% Net sales +15% EBIT* +22% Net profit* +24% EPS* +24% Comparable financial indicators (previously referred to as underlying ) exclude in 2006, the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 23

24 Established Markets Innovation supporting growth FY '07* % change Volume (m u.c.) 651 6% EBIT ( ) 292 5% EBIT margin 11.2% 0 bps Organic volume rose 6% with all countries achieving growth Solid operating performances in key markets, Greece and Italy Success of Coca-Cola Zero supported growth in CSD category of 4% Non-carbonated beverage grew highsingle digits EBIT margins held back by upfront sales investments and marketing spend on launch of Coke Zero (*)Financial indicators exclude contribution of Fonti del Vulture in first 6 months of Comparable financial indicators (previously referred to as underlying ) exclude in 2006, the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 24

25 FY '07 Developing markets Operating leverage driving margins % change Volume (m u.c.) % EBIT ( ) % EBIT margin 9.7% 140 bps Strong volume growth driven by beverage portfolio expansion and strong market execution Hungary, Poland and Czech Republic key drivers of segment profitability Revenue growth initiatives combined with higher operating leverage contributed to significant margin expansion Comparable financial indicators (previously referred to as underlying ) exclude in 2006, the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 25

26 Emerging markets Consistently delivering high growth FY '07 % change Volume (m u.c.) % EBIT ( ) % EBIT margin 11.2% 110 bps Double digit volume growth across all product categories and most countries supported strong volume performance Investment in additional capacity supported strong growth of our preservative-free Nestea, juice and sport drink products In Russia, effective revenue growth management and improved cost efficiencies led to operating profit increasing in the high double digits, well ahead of volume growth Comparable financial indicators (previously referred to as underlying ) exclude in 2006, the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 26

27 Full Year 2007: P&L Highlights (Comparable*) EURO (million) Full Year 2007 Full Year vs 2006 Volume (million u.c.) 2, , % Net Sales Revenue 6, , % Gross Profit 2, , % Gross Profit Margin 41.1% 40.1% Operating Profit (EBIT) % Net Profit % EBITDA 1, % EBIT Margin 10.9% 10.3% *Comparable financial indicators (previously referred to as underlying ) exclude in 2006 the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 27

28 Full Year 2007: P&L Highlights (Reported) EURO (million) Full Year 2007 Full Year vs 2006 Volume (million u.c.) 2, , % Net Sales Revenue 6, , % Gross Profit 2, , % Gross Profit Margin 41.1% 40.1% Operating Profit (EBIT) % Net Profit % EBITDA 1, % EBIT Margin 10.9% 9.0% 28

29 Full Year 2007: Gross Profit (Reported) EURO (million) Full Year 2007 Full Year vs 2006 Net Sales Revenue 6, , % Cost of Sales (3,807.3) (3,363.2) +13% Gross Profit 2, , % Net sales revenue per unit case was up by 6 cents, 2% vs 2007 Cost of sales per unit case was up by 0.5 cent, 0.3% vs 2007 Gross profit per unit case increased by 5 cents, 4% vs 2007 Gross profit margin increased to 41.1% from 40.1% (an increase of 100 bps versus last year) 29

30 Full Year 2007: Operating Profit (Reported) EURO (million) Full Year 2007 Full Year vs 2006 Gross Profit 2, , % Operating Expenses (1,952.0) (1,746.0) -12% Adjustments to intangible assets (0.8) (7.8) -90% Restructuring costs - (51.8) n/a Non-recurring items - (9.6) n/a Operating Profit (EBIT) % Comparable operating expenses* (1,952.0) (1,676.8) +16% Comparable operating profit (EBIT)* % *Comparable financial indicators (previously referred to as underlying ) exclude in 2006 the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 30

31 Full Year 2007: Operating Expenses (Comparable*) EURO Full Year 2007 Full Year vs 2006 Sales % Marketing % Warehouse / Distribution % Administration % Operating expenses per unit case % *Comparable financial indicators (previously referred to as underlying ) exclude in 2006 the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 31

32 Full Year 2007: Net Profit (Reported) EURO (million) Full Year 2007 Full Year vs 2006 Operating profit (EBIT) % Finance costs & other (87.4) (76.0) +15% Profit before tax % Tax (128.4) (89.9) +43% Minority interests (14.5) (7.5) -93% Net Profit % Comparable net profit* % Comparable EPS (in euros)* % *Comparable financial indicators (previously referred to as underlying ) exclude in 2006 the recognition of pre-acquisition tax losses, restructuring costs and non-recurrent items. 32

33 Thank you For further information on Coca-Cola Hellenic please visit our website at: or contact our Investor Relations Director Melina Androutsopoulou