John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO
Forward-Looking Statements INCLUDED IN THIS PRESENTATION ARE FORWARD- LOOKING MANAGEMENT COMMENTS AND OTHER STATEMENTS THAT REFLECT MANAGEMENT S CURRENT OUTLOOK FOR FUTURE PERIODS. As always, these expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this presentation should be read in conjunction with the risks and uncertainties discussed in our filings with the Securities and Exchange Commission ( SEC ), including our Form 10-K for the year ended December 31, 2012 and other SEC filings. 2
Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 3
CCE at a Glance EUROPE $8.1 billion net sales 30 billion servings annually to 170 million consumers 17 production facilities ~13,000 employees 10-K 2012 4
Vision and Global Operating Framework 1 #1 OR STRONG #2 IN EVERY CATEGORY WE COMPETE VISION 21 31 OUR CUSTOMERS MOST VALUED SUPPLIER A WINNING AND INCLUSIVE CULTURE Drive Consistent Long-Term Profitable Growth Be the best beverage sales and customer service company 5
Solid Fundamentals LARGE AND GROWING CATEGORY 1 NARTD: Retail Value of ~$65B with a +6% 3 year CAGR SUCCESSFUL POSITION 2 #1 in Value & Volume Share TRACK RECORD OF GROWTH 3 Meeting or exceeding our long-term targets on a 3 & 5 year compounded annual basis Commitment to Shareowners 1. Non-alcoholic ready-to-drink (NARTD) AC Nielsen FY12 & Canadean FY11; excludes tap/bulk water & dairy 2. AC Nielsen FY12 3. Comparable CAGRS through 2012; base years represent Legacy CCE EU operating segment except EPS which is total company; 2008-2011 includes segment remeasurement 6
Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 7
Market Overview NARTD BEVERAGE MARKET CHANNELS SEGMENTS 3 ~$95B All Other 2 All Hot Tea/Coffee, All Alcohol, Dilutables ~$40B ~$25B Non-measured 2 Measured 1 Grocery, Take Home, and On-Premise Ready-to-Drink: Sparkling, Still, and Water BEVERAGES IS A ~$160B RETAIL MARKET IN CCE TERRITORIES 1. AC Nielsen FY12 2. Canadean FY11 3. Excludes tap/bulk water & dairy 8
NARTD Category Growth Opportunity BEVERAGE PER CAP MIX OPPORTUNITIES ~30% ~60% GROW NARTD European consumption is ~0.6x of US ~40% ~30% US ~25% ~15% CCE Territories GROW SPARKLING European consumption is ~0.5x of US NARTD Sparkling 1 NARTD Other 2 All Other Bev 2 1. FY12 AC Nielsen 2. FY11 Canadean 9
CCE Focused on High Value Segments CATEGORY & CCE MIX 37% 24% 46% 37% 86% CCE participates in the highest value segments that drive favorable profit mix 39% 17% 11% 3% NARTD Volume1 NARTD Value1 CCE Volume 2 Sparkling Still Water 1. AC Nielsen FY12 2. 10-K 2012 10
Per Capita Consumption Growth Opportunity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 PER CAPS IN TCCC PER CAPS 1,2 2012 CCE TERRITORIES 1 745 CCE 180 246 200 172 333 401 141 141 CCE PER CAPITA CONSUMPTION GROWTH IS KEY TO DRIVING 4-6% LT SALES TARGET 1: CCE internal reports 2: TCCC beverages based on eight fluid ounce servings; CCE & KO 2012 10-K 11
Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 12
Securing the Growth Opportunities SUCCESSFUL BRANDS OUTSTANDING MARKETING & EXECUTION GREAT PEOPLE 13
Successful Brand Portfolio 68% MIX COCA-COLA TRADEMARK 1 SPARKLING FLAVORS AND ENERGY 18% MIX 1 STILLS 1 14% MIX 10-K 2012 14
Sparkling Coca-Cola Trademark COKE ZERO VOLUME 12.6% 3YR 1 CAGR PACKAGE INNOVATION MyCoke 1.75 ltr, 375ml & 250ml BRAND INNOVATION & EXPANSION Coke Zero Cherry Vanilla Coke 2009 2010 2011 2012 #1 IN VOLUME AND VALUE COLA SHARE IN EVERY TERRITORY AC Nielsen FY12 15
Sparkling Flavors & Energy PACKAGE INNOVATION Fanta 1 ltr & Fridgepack Relentless 250ml & 500ml can Burn 500ml BRAND INNOVATION & EXPANSION Sprite with Stevia Energy line extensions SWEETENER INNOVATION Burn Sugar Free 2012 ENERGY SEGMENT GROWTH Energy Segment CCE Brands Volume 8% 19% Value 9% 16% CCE OUTPERFORMED THE SEGMENT IN 2012 AC Nielsen FY12 16
Stills PACKAGE INNOVATION BRAND INNOVATION & EXPANSION SWEETENER INNOVATION Oasis 2 ltr Nestea can & 1 ltr Oasis Mango & Lemonade vitaminwater Sunshine Nestea Lemon Stevia Oasis Citrus Punch Light 17
2013 Marketing Calendar 2013 GROWTH WILL BE DRIVEN BY CORE BRANDS 18
Share A Coke Connect with target shoppers and consumers Reinforce engagement and brand relevance Motivate purchase Facilitate recruitment Drive excitement 19
Commercials shareacoke.com 20
Supply Chain Excellence CUSTOMER CENTRIC SUPPLY CHAIN Pan European scale with global procurement capability Flexible & efficient logistics/distribution system Cost efficient production & expandable infrastructure Responsible & sustainable 21
Optimizing Our Business BUSINESS TRANSFORMATION PROGRAM Streamline and reduce back office cost structure Standardized sales and marketing into a channel-focused organization Improve efficiency and effectiveness Best practice evolution Proven results in Benelux More aligned to customers needs Better position to capitalize on opportunities IMPROVE OUR OPERATING MODEL FOR DRIVING SUSTAINABLE FUTURE GROWTH 22
New Operating Model in Norway FROM TO RESULT Two primary packages that are refillable Package flexibility that is recyclable and non-refillable Expanded package offering Direct Store Delivery Indirect Delivery Customer preferred delivery method POSITIVE ENVIRONMENTAL IMPACT: RECYCLING, PRODUCTION, PACKAGING, AND DISTRIBUTION 23
Investing in Our Future CAPITAL INVESTMENT AND Evolving customer value creation model and increasing selling capabilities Advancing enabling technologies and improving on-line & digital shopping Developing people and investing in local communities 24
Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 25
Financial Priorities CONSISTENT earnings in line with our long-term objectives MAXIMIZE free cash flow (FCF) and maintain financial flexibility INCREASE return on invested capital and drive shareowner value DRIVE CONSISTENT LONG-TERM PROFITABLE GROWTH 26
Financial Approach CASH FROM OPERATIONS Achieve long-term targets CAPITAL INVESTMENT Invest prudently OPTIMIZE CAPITAL STRUCTURE + Reach and operate within target leverage M&A +/ Short Term use and long-term source of cash RETURN CASH TO SHAREOWNERS = Competitive dividend and share repurchase 27
Cash from Operations GROWTH NET SALES OPERATING INCOME ACHIEVE LONG-TERM TARGETS 4% 6% 6% 8% GENERATE SOLID FREE CASH FLOW Comparable & Currency Neutral 28
Invest for Long-Term Growth 2012 CAPITAL MIX CAPITAL HIGHLIGHTS 14% LT target ~4.0% 4.5% of net sales 28% 58% ~2/3 supports growth ~1/3 maintains existing assets Operations Cold Drink Equipment IT, Other 10-K 2012 29
Balance Sheet Flexibility NET DEBT 1 TO EBITDA LONG-TERM TARGET 2.5x 3.0x 2.5x 1.6x 2 1.7x 2.0x 2010 2011 2012 2013E WACD ~3% AND DEBT MATURITIES ARE GENERALLY < ANNUAL FCF 1. 10-K; Net Debt is total 3rd party debt less cash & cash equivalents; comparable EBITDA 2. Pro forma FY10 assumes D&A of low to mid $300M 30
Investing in High Return Opportunities (including M&A) OPPORTUNITIES Core business growth Adjacent territories and adjacent categories Other territories New business EVALUATION CRITERIA Cash flow of existing business Incremental value creation by CCE Incremental value to CCE s core business Risk, cost, and timeframe OPPORTUNITIES EVALUATED AGAINST ALTERNATIVES, INCLUDING RETURN OF CASH TO SHAREOWNERS 31
Solid Return on Invested Capital (ROIC) DRIVE Operating Growth INVEST in High Return Initiatives TIGHTLY MANAGE Working Capital After Tax Comparable OI Average Invested Capital = = CCE ROIC 14% 2012 Year End LONG-TERM TARGET OF 20 BPS ANNUAL IMPROVEMENT Average Invested Capital = (Beginning & Ending Net Debt & Equity) / 2 32
Cash Returned to Shareowners SHARE REPURCHASE (in $B) 0.2 0.8 0.8 ~1.0 2010 2011 2012 2013E $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 DIVIDENDS 2013 RATE INCREASE OF 25% 03 04 05 06 07 08 09 10 11 12 13E ~$2.8B OF SHARE REPURCHASES AFTER FORMATION OF NEW CCE THROUGH 2013E 10-K, rounded 33
Cash Available for Shareowners 2013E FUTURE OPPORTUNITY % of Mkt Cap Dividends Ongoing FCF MSD Share Repurchases Organic FCF Growth + Increasing leverage (to mid point of LT target range) LSD ~12% of Market Cap Maintain Debt Leverage + CCE internal reports 34
Operating Context 6.5 VOLUME + PRICE PER CASE 1 (Annual Growth Rates) 8.0 5.0 3.0 5.0 9.5 5.0 5.5 Restored growth after 2004 and 2005 Grew at an average rate of 5.5% from 2006 2011 04 05 02 03 06 07 08 09 10 11 12-1.0 0.0 Delivered 2.5% 2 OI growth in a challenging 2012-3.0 2013 remains dynamic and challenging - our focus continues to be managing business levers to drive shareowner value 1. Internal reports 2. Comparable, currency neutral; rounded 35
Key Financial Takeaways Realistic about challenging environment History of and commitment to managing the levers of our business to deliver growth Favorable and flexible capital structure Long-term financial objectives are challenging, yet achievable FOCUS ON CONSISTENT LONG-TERM PROFITABLE GROWTH 36
Agenda SOLID FOUNDATION OPPORTUNITY GROWTH SHAREOWNER VALUE CRS and KEY TAKEAWAYS 37
CRS SIGNIFICANT PROGRESS: CARBON REDUCTION, WATER USAGE AND PACKAGING RECYCLING 2012 KEY HIGHLIGHTS 15% carbon footprint reduction Lowest ever water usage ratio 15M bottles recycled at the London 2012 Olympic Games (6 week from waste to shelf) Announced residential recycling behaviorial study with Exeter University Community investment, including active and healthy living programs Expanded portfolio of low and no-calorie offerings All new cooler placements are HFC-free 38
Business Environment Risks Challenging macroeconomic environment Volatile commodity costs Increasing focus on health and wellbeing Risk of increased taxes THOUGH OPTIMISTIC ABOUT OUR LT OUTLOOK, WE ARE REALISTIC ABOUT KEY BUSINESS ENVIRONMENT RISKS 39
Key Takeaways Operating environment remains challenging History of solid growth Financial priorities focused on long-term profitable growth Track record of and focus on delivering shareowner value CCE IS EXECUTING OUR STRATEGIC PRIORITIES 40
John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO