Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — H1 2016 Earnings Presentation
23 slides from Coca-cola Hbc's earnings presentation, Aug 11, 2016
Slide 1: Results Presentation Half Year 2016
RESULTS PRESENTATION HALF YEAR 2016 11 August 2016
Slide 2: Forward-looking statements
Forward-looking statements Unless otherwise indicated, the condensed consolidated interim financial statements and the financial and operating data or other information included herein relate to Coca-Cola HBC AG and its subsidiaries (“Coca-Cola HBC” or the “Company” or “we” or the “Group”). This doc
Slide 3: Half-year highlights
Half-year highlights ● Net sales revenue up 2.4% on an FX-neutral basis ● Substantial improvement of FX-neutral revenue per case ● Volume increased marginally ● Excluding one less selling day in Q1, first-half volume would have grown by 0.7% ● Operating expenses as percentage of net sales revenue im
Slide 4: Financial review
Financial review Michalis Imellos Chief Financial Officer
Slide 5: Financial performance overview
Financial performance overview HY '16 HY '15 Ch. ● Net sales revenue on an FX-neutral basis growing well Volume (m u.c.) 1,007.3 1,006.6 0.1% ● Pricing actions and mix improvements Net Sales Revenue (€m) 3,043.9 3,150.9 -3.4% driving FX-neutral NSR per unit case growth FX-neutral Net Sales Revenue (
Slide 6: Financial performance overview
Financial performance overview HY '16 HY '15 Ch. ● Better price/mix and cost efficiencies, supported by input cost benefits, more Comparable EBIT (€m) 229.6 219.0 4.8% than offsetting currency headwinds Comparable EBIT Margin 7.5% 7.0% 60 bps ● Significant EBIT margin expansion Comparable Net Profit
Slide 7: Substantial improvement of FX-neutral net sales revenue per case growth
Substantial improvement of FX-neutral net sales revenue per case growth HY ‘16 vs. HY ’15 Total CCH Volume 0.1% FX-neutral revenue per case 2.4% Established Markets Volume -2.8% FX-neutral revenue per case 0.5% Developing Markets Volume 3.5% FX-neutral revenue per case -1.1% Emerging Markets Volume
Slide 8: Input cost benefits and phasing
Input cost benefits and phasing ● Comparable FX-neutral input cost per case decreased by 3.8% in the period ● PET resin costs decreased significantly year on year, driven by lower oil prices ● Improvements in sugar costs ● Marginal increase expected for the full year 8
Slide 9: Cost management initiatives delivering results supported by operating leverage
Cost management initiatives delivering results supported by operating leverage HY '16 HY '15 Change ● Cost efficiencies supported by operating leverage, driving a 75 bps improvement Volume (m u.c.) 1,007.3 1,006.6 0.1% ● 30 bps increase in marketing expenses as Net Sales Revenue (€m) 3,043.9 3,150.9
Slide 10: Operating leverage and input cost benefits delivering profitability
Operating leverage and input cost benefits delivering profitability Comparable EBIT Comparable EBIT margin (€m) Change HY’16 HY ‘15 HY ’16 vs HY ‘15 Established 20 104 84 8.7% 190bps Developing -2 43 45 8.2% -40bps Emerging -7 83 -44 90 6.3% -20bps Total CCH 11 230 219 7.5% 60bps Financial indicator
Slide 11: Accelerated restructuring programmes
Accelerated restructuring programmes HY 2016 ● €34m of pre-tax restructuring costs in the period ● Restructuring efforts focused mostly on Established and Emerging segments and to a lesser extent Developing FY 2016 ● Going forward we are accelerating our efforts, expecting: – pre-tax restructuring c
Slide 12: Strong free cash flow generation in the first half
Strong free cash flow generation in the first half €m HY '16 HY '15 Change ● Free cash flow higher than prior year EBITDA 396 370 26 ● Key drivers of free cash flow generation are operating profitability and working Working Capital change 16 -12 28 capital improvements Net Capital Expenditure -135 -
Slide 13: Diversified financial profile
Diversified financial profile Debt maturity profile Net debt / Comparable EBITDA 1.9x €800m 1.5x €600m €385m 2016 2020 2024 2014 2015 November June November 13
Slide 14: Benefitting from operating leverage
Benefitting from operating leverage +1,7pp -1.35pp +0.45pp +0,2pp 0,0pp 7,5% 7,5% +0,1pp 7,0% 7,0% 2015 HY Volume Revenue FX & Input Cost 2016 HY 2015 HY Gross Comp. 2016 HY EBIT margin leverage leverage costs efficiencies EBIT margin EBIT margin margin OPEX EBIT margin % NSR 0.1% Volume 2.4% FX- Ne
Slide 15: Operational review and strategy
Operational review and strategy Dimitris Lois Chief Executive Officer
Slide 16: Stable volume performance
Stable volume performance HY volume by segment +0.1% +0.5% -2.8% +3.5% 1,006.6 1,007.3 HY ’15 Established Developing Emerging HY ’16 Volumes in m UC 16
Slide 17: Excellent contribution from Sparkling and Energy
Excellent contribution from Sparkling and Energy YoY growth HY ‘16 HY ’15 Sparkling 1% 3% Trademark Coca-Cola 0.3% 4% Coca-Cola Zero 11% 17% Juice -5% 19% Multon brands -11% 34% Water - 4% Energy 23% 9% Tea -6% -2% HY ‘15 growth rates include the benefit of four extra selling days compared to HY ‘14
Slide 18: Established markets: decline partly impacted by weather
Established markets Decline partly impacted by weather Trademark Coca-Cola Coca-Cola Zero -4% +4% + Water -2% Italy Greece Switzerland Volume Currency-neutral Volume decline impacted by weather Stable volume reversing Q1 performance Decline across most key categories impacted by wet -3% net sales re
Slide 19: Developing markets: continuing growth
Developing markets Continuing growth Trademark Coca-Cola Coca-Cola Zero +2% +6% Water +10% Poland Czech Republic Hungary Volume Currency-neutral Volume up mid single digits Volume decline of mid single digits Volume up by low single digits +4% net sales revenue per case Growth across all categories
Slide 20: Emerging markets: balancing varying trends
Emerging markets Balancing varying trends Trademark Juice Coca-Cola -7% +2% Water -2% Russia Nigeria Romania Volume Currency-neutral Volume decline by high single digits Strong performance at high single-digit rate Accelerating volume growth to low teens +1% net sales revenue per case Challenging en
Slide 21: Looking ahead
Looking ahead ● We are confident that 2016 will be a year of strong FX-neutral revenue growth and progress on margins based on our expectations for – a substantial improvement in FX-neutral net sales revenue per case – volume growth overall – input costs a marginal headwind – adverse FX impact of c.
Slide 22: Q&A
Q&A For further information on Coca-Cola Hellenic please Or contact our investor relations team visit our website at: [email protected] WWW.COCA-COLAHELLENIC.COM +30.210.6183 100
Slide 23: Clear strategy, delivering results
Clear strategy Delivering results Diverse geographic Most known footprint with strong brands in the emerging market world exposure Low per capita Consistent growth consumption with in currency-neutral potential for revenue per case growth Solid track record Strong focus on cost of winning in the lea