Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — FY2014 Earnings Presentation
24 slides from Coca-cola Hbc's earnings presentation, Feb 18, 2015
Slide 1: Results Presentation: 2014 Fourth Quarter and Full Year
RESULTS PRESENTATION 2014 FOURTH QUARTER AND FULL YEAR 18 February 2015
Slide 2: Forward looking statements
Forward looking statements Unless otherwise indicated, the condensed consolidated 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 document co
Slide 3: Fourth quarter and full-year highlights
Fourth quarter and full-year highlights ● Volume improvement in the quarter, resulting in better than expected full-year volumes ● Market share gains ● Increase in FX-neutral revenue per case for the 14th consecutive quarter ● Gross profit margin growth in both periods, supported by successful reven
Slide 4: Financial review
Financial review Michalis Imellos Chief Financial Officer
Slide 5: Financial performance overview
Financial performance overview Q4’14 Q4’13 Ch. FY’14 FY’13 Ch. Volume (m u.c.) 485 481 0.8% 2,003 2,061 -2.8% Net Sales Revenue (€m) 1,510 1,575 -4.1% 6,510 6,874 -5.3% Currency-neutral NSR per case (€) 3.11 3.05 2.0% 3.25 3.17 2.5% Comparable Gross Profit Margin 34.3% 34.1% 20bps 35.7% 35.5% 20bps
Slide 6: Financial performance overview
Financial performance overview Q4’14 Q4’13 Ch. FY’14 FY’13 Ch. Comparable EBIT (€m) 57 68 -16.7% 425 454 -6.4% Comparable EBIT Margin 3.8% 4.3% -50bps 6.5% 6.6% -10bps Comparable Net Profit (€m) 30 34 -11.4% 277 293 -5.4% Comparable EPS (€) 0.08 0.09 -11.7% 0.76 0.81 -5.6% Free Cash Flow (€m) -12 68
Slide 7: 14th consecutive quarter of growth in currency-neutral net sales revenue per case
14th consecutive quarter of growth in currency-neutral net sales revenue per case Q4’14 FY’14 Total CCH Volume 0.8% -2.8% Currency-neutral revenue per case 2.0% 2.5% Established Markets Volume -2.8% -5.4% Currency-neutral revenue per case 3.1% 1.5% Developing Markets Volume 1.4% -6.0% Currency-neutr
Slide 8: Favourable input cost environment
Favourable input cost environment ● Currency-neutral input cost per case decreased by high single digits in the quarter and mid single digits in the full year ● EU sugar costs continued to decrease year on year ● World sugar costs remained on a downward trend ● PET resin costs decreased significantl
Slide 9: Efficiency improvements impacted by marketing investment and certain one-offs
Efficiency improvements impacted by marketing investment and certain one-offs Q4’14 Q4’13 Ch. FY’14 FY’13 Ch. Net Sales Revenue (€m) 1,510 1,575 -4.1% 6,510 6,874 -5.3% Comparable Operating Expenses (€m) 461 469 -1.7% 1,901 1,987 -4.3% Comparable OPEX as % of NSR 30.5% 29.8% 75bps 29.2% 28.9% 30bps
Slide 10: Mixed segmental trends in comparable operating profit, driven by FX
Mixed segmental trends in comparable operating profit, driven by FX Q4 comparable EBIT Q4’14 Q4 ‘13 Total CCH -€11m 57 68 Established €3m 17 14 Developing €3m 3 0 Emerging -€17m 37 54 -20 -10 0 10 Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised c
Slide 11: Restructuring update
Restructuring update 2014 recap ● We incurred €31m in pre-tax restructuring costs in the fourth quarter ● For the full year, we incurred pre-tax restructuring costs of €62m ● Annual restructuring benefits amounted to €35m in 2014 FY 2015 targets ● We expect total pre-tax restructuring charges to amo
Slide 12: Solid free cash flow generation in the full year
Solid free cash flow generation in the full year €m FY’14 FY’13 Ch. EBITDA 742 756 -14 Cash from Working Capital 15 99 -84 Net Capital Expenditure -354 -372 19 Free Cash Flow 333 413 -80 Free cash flow expectation for the 2013-2015 period revised to €1.1-1.2bn, due to acceleration of the adverse cur
Slide 13: Diversified financial profile
Diversified financial profile Debt maturity portfolio €800m €600m $400m 2015 2016 2020 September November June 13
Slide 14: 2015 Financial Outlook
2015 Financial Outlook Drivers of comparable EBIT Revenue Volume incl. pricing Input costs Self-help FX net of concentrate ● Positive EBIT contribution from volume leverage ● Revenue growth management initiatives, including pricing, to increase the top line ● Input costs to remain a tailwind ● Self-
Slide 15: 2015 – Management of foreign currency movements
2015 – Management of foreign currency movements Scenario 1 Scenario 2 FX deteriorates from current spot rates FX improves from current spot rates Unfavourable FX movement Favourable FX movement Currency depreciation linked to the oil Currency appreciation linked to the oil price - price - Oil-linked
Slide 16: Operational review and strategy
Operational review and strategy Dimitris Lois Chief Executive Officer
Slide 17: Sequential improvement in volume trends in all segments in the quarter
Sequential improvement in volume trends in all segments in the quarter Q4 volume by segment +3% +1% 485 m u.c. 481 m u.c. -3% Q4' 13 Established Developing Emerging Q4 '14 17
Slide 18: All categories gained pace in the quarter
All categories gained pace in the quarter Year-on-year growth Q4’14 FY’14 Sparkling 0% -3% Trademark Coca-Cola 0% -3% Coca-Cola Zero 8% 6% Juice 10% 5% Multon 19% 12% Water 1% -2% Energy 0% 1% Tea -3% -7% 18
Slide 19: Established markets: Gradual deceleration of negative volume trends
Established markets Gradual deceleration of negative volume trends Trademark Coca-Cola Coca-Cola Zero -6% +3% + Water -2.5% Italy Greece Switzerland 10% volume decline Volume growth (+2%) 7% volume decline following five years of Volume Currency- Challenging Deceleration in the underlying economic d
Slide 20: Developing markets: Focus on value
Developing markets Focus on value Trademark Coca-Cola Coca-Cola Zero -3% +6% Water -8% Poland Hungary Czech Republic Volume declined by 7% Volume declined by Volume declined by 1% 11%; across all key Volume Currency- Positive volume in the quarter Volatile categories except -6% neutral net performan
Slide 21: Emerging markets: Stable performance in a volatile environment
Emerging markets Stable performance in a volatile environment Trademark Juice Coca-Cola +9% Stable Water -1% Russia Nigeria Romania Volume at +1%, in a Volume at +4%; Volume at -6% volatile year maintaining good Trading environment Volume Currency- Coke grew by 1%, momentum in Q4 remains competitive
Slide 22: Looking ahead
Looking ahead In 2015 we will continue to pursue our strategy to ● exploit volume leverage supported by favourable country mix ● expand market leadership in both Sparkling and NARTD ● implement revenue growth management initiatives driven by our focus on OBPPC, single-serve packages as well as prici
Slide 23: Q&A
Q&A For further information on Coca-Cola Or contact our investor relations team Hellenic please visit our website at: [email protected] WWW.COCA-COLAHELLENIC.COM +30.210.6183 100
Slide 24: Long-term growth drivers
Long-term growth drivers Most known brands in the world Strong focus on cost leadership and Diverse geographic history of solid cash footprint with strong generation emerging market exposure Solid track record Low per capita of winning in the consumption with great marketplace potential to grow 24