Coca-Cola Icecek A.S. · BIST:CCOLA
Coca-Cola Icecek A.S — HSBC EEMEA Investor Forum and ADX Conference 2016
21 slides from Coca-Cola Icecek A.S's conference presentation, Mar 10, 2016
Slide 1: 2015 Review & 2016 Outlook
HSBC EEMEA Investor Forum and ADX Conference 2016 2015 Review & 2016 Outlook New York 9-10 March 2016
Slide 2: CCI at a Glance, 2015 Review, 2016 Expectations & Long Term Prospects
1 CCI at a Glance 2 2015 Review 2016 Expectations & Long Term Prospects 3 2
Slide 3: A regional powerhouse
A regional powerhouse 5th largest bottler 1.2 billion UC sales volume 10 countries 28 billion annual servings to 25 plants 380 million people 10 thousand employees 2 billion of investment 6.7 billion annual revenue in the past 10 years 1 billion annual EBITDA Annual production capacity of Public 1.5
Slide 4: Operating in the high growth markets
Operating in the high growth markets Coca-Cola HBC Coca-Cola European Partners* Volume: 2.0 bn uc Volume: 2.5 bn uc Revenue: USD 7 bn Revenue: USD 13 bn KO Volume Growth Average (2010-2014) Coca-Cola Icecek Volume: 1.1 bn uc 9% Revenue: USD 2.5 bn 5% 4% 0% -1% Coca-Cola Femsa Eurasia & Pasific Latin
Slide 5: Sparkling beverage consumption vs GDP
Sparkling beverage consumption vs GDP Per cap 180 consumption (liters) (2014) 150 Mexico USA Argentina Germany 120 Brazil 90 UK Spain South Africa Saudi Arabia Bulgaria 60 Hungary Oman Poland Jordan Iraq Turkey Greece Turkmenistan Russia Italy Kazakhstan 30 Kyrgyzstan Egypt Pakistan Azerbaijan Tajik
Slide 6: Strong brand portfolio
Strong brand portfolio BRAND & FLAVOR EXPANSION PACKAGE INNOVATION 2006 2015 Differentiated package segmentation across channels, customers & Brands 17 30 consumers Flavors 44 148 6
Slide 7: Strong market positions in sparkling
Strong market positions in sparkling Turkey Kazakhstan Pakistan Iraq 64% 50% 36% 31% 7
Slide 8: Our strategic priorities
¢ Winning At The Point of Sales tee 1 , @Beamaim §¢ * Sales Force Effectiveness - SFE Bn HW z= == 1 * Revenue Growth Management - OBPPC A
Slide 9: Accelerate revenue and margin growth
Accelerate revenue and margin growth Revenue Growth Management Cold Occasion availability Brand Package 65% Price +6 pp vs. Channel PY IC mix in Focus on IC portfolio transactions 27% si +155% +6pp in in 2010-2015 2010-2015 9
Slide 10: Grow sparkling category and per caps
Grow sparkling category and per caps AVAILABILITY AFFORDABILITY ACCEPTABILITY ACTIVATION Brand Love 55% BLS Score ~55% numeric Affordable entry pack 4 out of 10 countries +400 Customer tailored availability within availability rank the best, 3 rank campains 750k outlets the 2nd best company by custo
Slide 11: Volume, revenue and EBITDA growth in 2015
Volume, revenue and EBITDA growth in 2015 Consolidated Volume (mn uc) Consolidated Revenue (TL mn) Consolidated EBITDA (TLmn) 6.724 1051 1.152 962 5.985 1.131 2014 2015 2014 2015 2014 2015 11
Slide 12: Turkey volume shows a gradual recovery in 2015
Turkey volume shows a gradual recovery in 2015 Turkey Volume & Transactions Number of transactions grew by 6%, ahead of unit case growth 22% 19% Sparkling transactions grew by 5% 9% 5% 1% IC share in sparkling exceeds 20% 1Q15 2Q15 3Q15 4Q15 -4% -1% Revenue per uc grew by 7% in 2015 thanks to succes
Slide 13: Pakistan & Middle East delivers 4% volume growth in 2015
Pakistan & Middle East delivers 4% volume growth in 2015 6% volume growth in Pakistan in 2015, cycling 17% growth in 2014 Volatile topline growth throughout the year Rationalized discounts & improvement in operating profitability in 2H15 Protected market share compared to 2014 1.5% volume contractio
Slide 14: Central Asia volume contracts by 4% in 2015
Central Asia volume contracts by 4% in 2015 Weak consumer environment due to significant devaluations Kazakhstan volume contracted by low single digits in 2015 while brand Coke was flat Double digit volume contraction in Azerbaijan Price increases lagging behind devaluations Remaining affordable and
Slide 15: Top Line Performance
Top Line Performance Consolidated Net Revenue (TL mn) Consolidated Net Revenue (TL mn) • Pricing & volume in TR • Revenue per uc up by 7% in Turkey: 1.273 6.724 • Strong Pricing & Favorable sales mix 1.083 5.985 4Q14 4Q15 2014 2015 • Pricing in int’l operations • Revenue per uc down by 9% in Int’l:
Slide 16: Profitability
Profitability Consolidated EBITDA (TLmn) Consolidated EBITDA (TLmn) 7.6% 15.6% 6.5% 16.1% 97 1.051 • Lower gross profit in int’l operations 71 • Opex growth lower than revenue growth 962 • Effective discount and opex management • Improving operating profitability in Pakistan 4Q14 4Q15 2014 2015 • Tr
Slide 17: Leverage and Debt
Leverage and Debt Financial debt (US$ million) Maturity (US$ million) 1.140 1.160 649 1% 1% 6% 13% USD 500m Eurobond + 16% TL & JD & KT USD 100m USPP PKR 86% EUR 194 77% 109 120 USD 53 36 2014 2015 2016 2017 2018 2019 2020 2023 Net Debt (US$ million) Net Debt / EBITDA 812 816 2,26 1,96 *12 Months Tr
Slide 18: Free Cash Flow
Free Cash Flow Net Operating Cash Capex (TL mn) Free Cash Flow (TL mn) Inc. Working Capital (TL mn) 11.3%* 10.4% 12.3%** 12.3% 2014 2015 874 46 -738 -829 748 10 2014 2015 2014 2015 *NWC/Sales **Capex/Sales Lower NWC/Net Revenue 3 new plants in 2015 Positive FCF despite high capex
Slide 19: Commodity & FX Hedging Status 2016
Commodity & FX Hedging Status 2016 Sugar(1) Resin(2) Can FX(3) 10% 30% 37% 47% 70% 63% 53% 90% Hedged Non Hedged Hedged Non Hedged Hedged Non Hedged Hedged Non Hedged (1) Hedge percentage: Turkey and Azerbaijan excluded. (2) Hedge percentage: Only price fixing through suppliers (3) Turkey Raw Materi
Slide 20: 2016 Expectations and Volume Breakdown (2015)
2016 Expectations •Transaction growth ahead of uc growth •Higher IC share •Growth in revenue/uc •Margin Expansion •Oil Prices & Devaluation Risk Central Asia 16% Lower •Oil Prices & Devaluation Risk Volume Breakdown (2015) Iraq capex 9% •Comparable base •Strong sparkling growth Positive Turkey FCF 5
Slide 21: 2016 Guidance
2016 Guidance Guidance Consolidated – Low-mid single digit volume growth o Turkey – Low single digit volume growth o International – Low-mid single digit volume growth ● Net revenue growth > volume growth ● Flat consolidated EBITDA margin, compared to 2015
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