Arca Continental Sab De Cv · BMV:AC
Arca Continental Sab De Cv — Investor Presentation (2015)
24 slides from Arca Continental Sab De Cv's investor presentation, 2015
Slide 1: Corporate Presentation 2015
Corporate Presentation 2015
Slide 2: Presentation Disclaimer
Presentation Disclaimer During this presentation management may discuss certain forward-looking statements concerning Arca Continental’s future performance that should be considered as good-faith estimates made by the Companies. These forward-looking statements reflect management expectations and ar
Slide 3: One of the most profitable companies in the Industry
One of the most profitable companies in the Industry • +20% EBITDA margin • Sustainable Dividend Pay Out Ratio + 50% Last 4 years • Net Debt to EBITDA of 1.7x 3
Slide 4: A geographic balanced business portfolio
A geographic balanced business portfolio 13% 12% 16% 2015* 52% 7% *Pro forma Sales 2015 (MXP): Revenues by Business Unit $82,442 4
Slide 5: Coca Cola as a solid partner in our business structure
Coca Cola as a solid partner in our business structure Arca Continental Control Group 71% Float BMV: AC* 20% The Coca-Cola Company 9%
Slide 6: Best in class Corporate Governance
Best in class Corporate Governance • Balanced Board of Directors (20 members, 5 independent) • Majority shareholders only at Board level • The Coca-Cola Company appoints one member of the Board • Audit Committee comprised of independent members only • No transactions with related parties
Slide 7: Successful brand portfolio to satisfy every consumption occasion
Successful brand portfolio to satisfy every consumption occasion Brands +40 +600 SKUs 7
Slide 8: CAPEX 2015
Investments focused on incremental volume initiatives • Coolers • Glass & Ref-Pet bottles 2% 6% • IT 14% • New Facilities 21% CAPEX 2015 56% 1% Mxp$5,200 Million Bokados Mexico Inalecsa Ecuador Argentina US
Slide 9: Solid inorganic growth 2002 – 2014 M&A
Solid inorganic growth 2002 – 2014 M&A 2014 ToniCorp 2013 Nogales 2012 Snacks Intl. 2011 & Santa Contal Clara 2010 Merger Ecuador 2008 Argentina & 2007 Jugos del Snacks Valle 2002 Mexico and Arca Vending 2015 Merger 9
Slide 10: The power of knowledge
The power of knowledge • Consumer & Customer Insights • Segmentation • Price & Package Architecture • Shopper solutions • RGM 10
Slide 11: Arca Continental Territories
Arca Continental Territories Mexico Argentina Ecuador • Start date: 1926 • Start date: 2008 • Start date: 2010 • Sales volume (MUC) 1,000 • Sales volume (MUC) 141 • Sales volume (MUC) 149 • % KO volume 30 • % of KO volume 21% • % of KO volume 100% • Population served (MM) 30 • Population Served (MM)
Slide 12: Mexico's opportunity is to develop still beverages portfolio
Mexico´s opportunity is to develop still beverages portfolio 7% 10% 6% 2% S-Markets On Premise 11% Stills 4% Vending Flavors Water 14% C-Stores 17% Jug Channel Category 7% Other 60% 62% Traditional Colas Format 52% 38% 48% Returnable Single-serve Multi-serve 62% Non Returnable Package 12
Slide 13: Promoting the consolidation of the KO System in Latin America
Promoting the consolidation of the KO System in Latin America Nogales • Acquired 25% minority stake in Bebidas Refrescantes de Nogales CDF in northern Mexico • Proximity of our AC AC territories allows further opportunities for synergies and find better Nayar ways to serve Bepensa Rica Colima KOF KO
Slide 14: Argentina focusing on develop still beverages, single serve & cooler coverage
Argentina focusing on develop still beverages, single serve & cooler coverage 2% 1% 1% On Premise C-Stores 20% Stills S-Markets 26% 8% 31% Flavors Water Other Channel Category 46% 65% Traditional Colas 8% Single-serve Format 42% Returnable 92% 58% Multi-serve Non Returnable Package 14
Slide 15: Ecuador developing cooler coverage & returnable single serve
Ecuador developing cooler coverage & returnable single serve 7% 13% S-Markets On Premise 11% 1% Stills C-Stores 30% 10% Flavors Water 14% Other Channel Category 65% 49% Traditional Colas Format 20% 29% Returnable Single-serve 71% 80% Multi-serve Non Returnable Package 15
Slide 16: Strong single-serve mix and returnable base
Strong single-serve mix and returnable base 4% 8% 4% 6% S-Markets On Premise 2015 Jug Stills 2% 9% 16% Wholesalers C-Stores Water 10% Other Channel Category 58% 74% Traditional CSDs 40% 60% 31% Single-serve Multi-serve Format Package Returnable 69% Non- Returnable 16
Slide 17: We have delivered outstanding results in South America
We have delivered outstanding results in South America • Consistently creating value in Argentina, EBITDA when acquired: Usd$95 million in 2010 to Usd$185 million in 2014 • Increasing execution and cooler coverage. Argentina 45%, +20 p.p. Ecuador 47%, +26 p.p. • All CAPEX investments made from cash
Slide 18: Strong brand portfolio
Strong brand portfolio (2007) (2013) (2013) • 3rd largest snack brand in • Over 90 years history • 40 year history Mexico, 40 year history • Leading regional brand • Strong position in the • Sales tripled in six years Ecuadorian market • #1 brand in NY metro area • Plan to expand nationwide • 2nd la
Slide 19: High potential growth opportunity based on strategic adjacencies to our Core
High potential growth opportunity bases on strategic adjacencies to our Core USD$ 350 MM in 2014 (8% of Revenues) • Complementary to our core business • Expand snack business in Mexico under Bokados and complements with Wise • Strengthen our presence in the US and Ecuador 19
Slide 20: An aggressive Direct to Home expansion is building loyalty with our consumers
An aggressive Direct to Home expansion is building loyalty with our consumers • Leverage our Jug water business to sell other categories DTH SALES DTH ROUTES (MUC) • Jug Water currently reach 4.5 336 900,000 households • Opportunity to introduce new 226 categories and brands 4.1 +49% +11% 2013 2014
Slide 21: Exports capitalizes a growing market
Exports capitalizes a $104 MM USD growing market Exports +6x vs 2005 Coca-Cola (Nostalgia) 6.9 7.7 6.8 6.4 5.2 4.9 13.0 13.0 4.5 10.6 4.0 9.0 3.9 6.6 3.1 4.3 4.4 2.0 2.9 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 22: Performing is worthless without respecting our environment
Performing is worthless without respecting our environment RECYCLING WATER ENERGY 38% of PCR 1.68 Water Lts. / Beverages Lts. 22.4 G CO2 / Beverages Lts. 26,000 Tons 14% vs 2010 11,000 MWH of resin consumed. Goal of 1.5 Water LTS. / Beverages Lts. Savings in 2014 ** 2014 **2014 **2014 22
Slide 23: Key Takeaways
Key Takeaways • Clear Vision and excellence in execution • Track record in creating shareowner value • Financial strength and flexibility • World-class Corporate Governance and professional management team • Best-in-class production and distribution capabilities • Solid M&A and integration capacity,
Slide 24: Contact us
CONTACT US AT: [email protected] [email protected] [email protected] www.arcacontal.com