Investor Relations. June, 2016

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Transcription:

Investor Relations June, 2016

Cautionary Statement FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements These forward-looking statements relate to Coca-Cola FEMSA, S.A.B. de C.V. its Subsidiaries ( KOF ) and their businesses, and are based on KOF management s good faith expectations regarding KOF and its businesses. Recipients are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside KOF s control, that could cause actual results of KOF and its businesses to differ materially from such statements. KOF is under no obligation, and expressly disclaims any intention or obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. CONFIDENTIALITY The nature of all the information in this presentation is proprietary and confidential. ADDITIONAL INFORMATION AND WHERE TO FIND IT Documents filed by KOF are available at the Securities and Exchange Commission s public reference room located at 450 Fifth Street, N.W., Washington, D.C. 20594. Investors and security holders may call the Commission at 1-800-SEC-0330 for further information on the public reference room. Free copies of all of KOF s filings with the Commission may also be obtained by directing a request to: COCA-COLA FEMSA Mario Pani # 100, Piso 7, Col. Santa Fé Cuajimalpa 05348, México D.F., México INVESTOR RELATIONS Roland Karig / (52) 55 1519 5186 / roland.karig@kof.com.mx José Manuel Fernández / (52) 55 1519 5148 / josemanuel.fernandez@kof.com.mx Tania Ramirez / (52) 55 1519 5013 / tania.ramirez@kof.com.mx 2

In the last two decades as a public bottler, KOF has travelled a successful growth journey Coca-Cola FEMSA Volume MMUC 3.5 3.0 2.5 2.0 1.5 1.0 0.5 1994 Argentina 2003 Panamco 2007 Jugos del Valle 2010 Matte Leao Estrella Azul 2008 REMIL 2012 Foque Santa Clara 2011 G. Tampico CIMSA 2013 Yoli Spaipa Fluminense Filipinas 1995 2000 2005 2010 2015 Consumers 40.1 181.4 200.7 357.6 Plants 14 30 31 63 Distribution Centers 68 228 204 327 3

to become the largest franchise bottler in the world, in terms of volume, operating in two of the most attractive regions for its industry ~ 26 Bn Transactions (1) ~ 4 Bn Unit Cases (1) US$ ~10 Bn in Revenues (1) US$ ~2 Bn in EBITDA (1) 10 years CAGR (1) +8% +12% +11% Industry growth CAGR 14-19 (2) LATAM Southeast Asia Southeast Asia (3) Volume Value (1) Figures reflect LTM 1Q 2016 including the Philippines on a proforma basis (2) Source Euromonitor, NARTD industry (3) We operate the Philippines through a joint venture with The Coca-Cola Company +3% +7% +4% +6% 4

Our footprint Mexico and Central America division LTM 1Q16 Volume (MMUC) 1,973 Transactions (Millions) 10,959 Revenues (USD Billions) ~4.6 EBITDA Margin 23.3% Population served (millions) 93.8 Points of sale 996,773 Plants 22 Distribution centers 174 (1) product mix by category % of volume of total beverages Water 20% NCB's 6% CSD's 74% product mix by package % of volume of sparkling beverages Non-Returnable 63% Returnable 37% product mix by size % of volume of sparkling beverages Multi Serve 63% Single Serve 37% Product Innovation (1) Figures reflect FY 2015 5

Our footprint South America division Population served (millions) 162 Points of sale 1,006,206 Plants 22 Distribution centers 100 LTM 1Q16 Volume (MMUC) 1,411 Transactions (Millions) 9,292 Revenues (USD Billions) ~4.0 EBITDA Margin 17.3% *Including Venezuela (1) product mix by category % of volume of total beverages Water 10% NCB's 7% CSD's 83% product mix by package % of volume of sparkling beverages Non-Returnable 82% Returnable 18% product mix by size % of volume of sparkling beverages Multi Serve 77% Product Innovation Single Serve 23% *Including Venezuela (1) Figures reflect FY 2015 6

Our footprint Asia division (1) LTM 1Q16 Volume (MMUC) 541 Transactions (Millions) 5,641 Revenues (USD Billions) ~1.1 EBITDA Margin ~11% Population served (millions) 101.8 Points of sale 806,369 Plants 19 Distribution centers 53 (2) product mix by category % of volume of total beverages Water 10% NCB's 2% CSD's 88% product mix by package % of volume of sparkling beverages. Excluding Fountain Non-Returnable 40% Returnable 60% product mix by size % of volume of sparkling beverages. Excluding Fountain Multi Serve 55% Single Serve 45% Product Innovation (1) We operate the Philippines through a joint venture with The Coca-Cola Company (2) Figures reflect FY 2015 7

We generated a solid set of results across our markets during the first quarter of 2016 Among our highlights for the quarter Transactions continued to outperform volumes in key markets such as Mexico, Brazil, Colombia and Argentina Comparable figures (1) 1Q 2016 Revenues +9% Solid performance in local currencies across operations, with comparable top- and bottomline growing high single digits We continued to strengthen our market position in most of our markets, maintaining or gaining market share in sparkling beverages Our operating discipline and our proactive hedging strategy allowed us to deliver defensive margin performance Operating Income Operative cash flow +10% +8% (1) Comparable means, with respect to a year-over-year comparison, the change in a given measure excluding the effects of (i) mergers, acquisitions and divestitures, (ii) translation effects resulting from exchange rate movements and (iii) the results of hyperinflationary economies in both periods. From our operations, only Venezuela qualifies as a hyperinflationary economy. 8

Our industry faces short term challenges that are being addressed rapidly and effectively Challenging political and macroeconomic environment across the region Continuous volatility across Latin American currencies Regulatory threats to the CSD s industry Changing consumer habits Affordable portfolio with focus on returnable presentations Increasing the number of transactions through single serve presentations at relevant price points Reinforcing our point-of-sale execution Organizational re-design to become a nimbler, faster and more competitive company with the right capabilities Widening our portfolio offering to satisfy the evolving needs of our consumers through relevant innovation 9

Our Strategic Framework guides our quest for long-term profitable growth Become a multi-category leader with global footprint Categories: Geographies: Protect and grow in Sparkling, but diversify with aggressive growth engines in Stills, Dairy and new categories Expand footprint in LatAm & Asia, monitoring other opportunities within TCCC System Winning Portfolio Buildup CSD revitalization Stills profitable growth Dairy quantum leap Operating Model Transformation Leverage our scale Local market solutions Cutting-edge technology Cultural Evolution Attain Collaboration Maintain our passionate execution Increase Multi-culturality Disciplined Capital Allocation Business Sustainability Relationship with KO Targeted Innovation 10

Diversifying our portfolio, providing our consumers with a wider range of choices / AdeS acquisition KOF and KO successfully reached an agreement to buy AdeS, Latam s leading soy-based beverage producer for US$575 million KOF Territories AdeS Territories Plants In 2015, AdeS generated volume of 56.2 MM UC and US$284 million in revenues High potential to leverage the KO System s Route-To-Market AdeS works as a platform to enter the Neo Natural Nutrition category 11

At KOF we are continuously building a sustainable, competitive advantage through capability development Coca-Cola FEMSA Excellence Centers Commercial Manufacturing Distribution & Logistics IT & Innovation 12

We continue investing to lead the system with best-in-class infrastructure +US$ 630 million invested on infrastructure in the last 3 years Sumaré Warehouse in Brazil Jundiai Vertical Warehouse in Brazil Horus plant in Colombia Itabirito plant in Brazil Canlubang plant in the Philippines 13

and continue generating shareholder value through our operating and financial discipline KOF EBITDA margins Free Cash Flow generation 20.5% 20.5% 18.8% 2011 18.9% 2012 18.3% 2013 19.3% 2014 2015 LTM 1Q16 ~US$550 MM on a yearly basis Dividend per share Fiscal year Mexican pesos 0.51 0.73 1.41 2.36 2.77 2.90 2.90 3.09 3.35 2007 2008 2009 2010 2011 2012 2013 2014 2015 14

We have a strategic commitment to sustainable development, which is good for our business and good for our planet Only beverage company selected to comprise the Dow Jones Sustainability Emerging Markets Index and one of only nine beverage corporations in the Dow Jones Sustainability Index family 5th Consecutive Year as a member of Social Responsibility and Sustainability Index in the BMV 15

Thanks 16