Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — FY2015 Earnings Presentation
24 slides from Coca-cola Hbc's earnings presentation, Feb 19, 2016
Slide 1: Results Presentation Full Year 2015
RESULTS PRESENTATION FULL YEAR 2015 19 February 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: Full-year highlights
Full-year highlights ● Volume growth in all three segments ● Fifth consecutive year of FX-neutral revenue per case improvement ● Net sales revenue decline due to FX headwinds ● Comparable EBIT up by 11% with 100bps margin expansion ● Comparable EPS up by 14% on prior year ● Working capital and opera
Slide 4: Financial review
Financial review Michalis Imellos Chief Financial Officer
Slide 5: Financial performance overview
Financial performance overview FY '15 FY '14 Ch. ● Strong underlying volume trends continued in Q4 Volume (m u.c.) 2,055.0 2,002.9 2.6% ● FX headwinds impacting revenue Net Sales Revenue (€m) 6,346.1 6,510.2 -2.5% ● Pricing actions driving FX-neutral NSR per FX-neutral NSR per case (€) 3.09 3.08 0.3
Slide 6: Financial performance overview
Financial performance overview FY '15 FY '14 Ch. ● Input cost benefits and volume leverage more than offsetting currency headwind Comparable EBIT (€m) 473.2 424.7 11.4% ● Significant operating margin expansion Comparable EBIT Margin 7.5% 6.5% 100bps ● Good growth in earnings per share Comparable Net
Slide 7: Fifth consecutive year of FX-neutral net sales revenue per case growth
Fifth consecutive year of FX-neutral net sales revenue per case growth FY ‘15 Total CCH Volume 2.6% FX-neutral revenue per case 0.3% Established Markets Volume 1.0% FX-neutral revenue per case -2.4% Developing Markets Volume 5.7% FX-neutral revenue per case -2.4% Emerging Markets Volume 2.5% FX-neut
Slide 8: Favourable input cost environment
Favourable input cost environment ● FX-neutral input cost per case decreased by 9% in the year ● EU sugar costs continued to decrease year on year ● World sugar costs remained on a downward trend ● PET resin costs decreased significantly year on year 8
Slide 9: Cost management initiatives delivering results despite higher FX management costs
Cost management initiatives delivering results despite higher FX management costs Total CCH – Opex as % NSR FY ‘15 FY ‘14 Ch. Volume (m u.c.) 2,055.0 2,002.9 2.6% -0,2pp +0,2pp 0,0pp Net Sales Revenue (€m) 6,346.1 6,510.2 -2.5% Operating Expenses (€m) 1,855.2 1,901.4 -2.4% 2014 Cost mgmt DME FX mgmt
Slide 10: Operating leverage and input cost benefits delivering profitability
Operating leverage and input cost benefits delivering profitability Comparable EBIT Comparable EBIT margin (€m) FY’15 FY ‘14 FY’15 Change vs ‘14 Established 52 199 147 8.0% 200bps Developing 41 99 58 9.0% 350bps Emerging -44 176 -44 220 6.4% -90bps Total CCH 48 473 425 7.5% 100bps Financial indicato
Slide 11: Restructuring update
Restructuring update FY 2015 ● €54m of pre-tax restructuring costs in the year ● Restructuring efforts focused mostly on Established and Emerging segments and to a lesser extent Developing ● Annual restructuring benefits amounted to €51m in 2015 FY 2016 ● Going forward we expect: – pre-tax restructu
Slide 12: Solid free cash flow generation in the year, achieving three-year target
Solid free cash flow generation in the year, achieving three-year target €m FY ‘15 FY '14 Ch. ● Free cash flow higher than prior year EBITDA 766 742 24 ● 2013-2015 cash flow at €1.16bn achieving our three-year target Working Capital change 44 15 29 ● Key contributor to free cash flow Net Capital Exp
Slide 13: Diversified financial profile
Diversified financial profile Debt maturity profile Net debt / Comparable EBITDA 1.9x €800m 1.5x €600m 2016 2020 2014 2015 November June 13
Slide 14: Benefitting from operating leverage
Benefitting from operating leverage +0,2pp +0,2pp -0,1pp +0,7pp 7.5% 6.5% 2014 Volume leverage NSR leverage FX impact & Cost productivity 2015 EBIT input costs EBIT margin 2.6% Volume 0.3% Revenue Net result of FX margin growth @ 0.25pp growth @ 0.70pp impact and input per 1% = 0.7pp per 1% = 0.2pp
Slide 15: Sensitivity analysis in a volatile environment
Sensitivity analysis in a volatile environment Current oil price and major Oil price Oil price increasing currency spot rates movement RUB strengthening vs. USD (US$ 30/barrel) €0m (€80m) FX (€135m) Negative impact on P&L vs. 2015 (MSD)* Input Costs (FX-neutral) (LSD)* Potential €20m relief Not to s
Slide 16: Operational review and strategy
Operational review and strategy Dimitris Lois Chief Executive Officer
Slide 17: Business returning to volume growth
Business returning to volume growth FY volume by segment +2,6% +2.5% +1.0% +5.7% 2.055 2.003 FY 14 Established Developing Emerging FY 15 17
Slide 18: Good growth in most categories
Good growth in most categories YoY growth FY ‘15 FY ‘14 Sparkling 2% -3% Trademark Coca-Cola 3% -3% Coca-Cola Zero 24% 6% Juice 8% 5% Multon brands 14% 12% Water 5% -2% Energy 7% 1% Tea -4% -7% 18
Slide 19: Established markets Return to growth
Established markets Return to growth Trademark Coca-Cola Coca-Cola Zero - +7% + Water +6% Italy Greece Switzerland Volume Currency-neutral Volume growth after five years of decline Volume growth for the 2nd consecutive year Stable performance +1% net sales revenue per case Water volume up, helped by
Slide 20: Developing markets Sustainable growth
Developing markets Sustainable growth Trademark Coca-Cola Coca-Cola Zero +6% +17% Water +14% Poland Czech Republic Hungary Volume Currency-neutral Volume up by 7% Volume growth of 4% Volume up by 8% +6% net sales revenue per case Good Water and Sparkling Good performance across most All categories g
Slide 21: Emerging markets Navigating adversity
Emerging markets Navigating adversity Trademark Juice Coca-Cola +11% +5% Water +1% Russia Nigeria Romania Volume Currency-neutral Volume decline by 6% in a low teens declining market Robust performance momentum with 10% Volume growth of 11% +3% net sales revenue per case Very good performance volume
Slide 22: Looking ahead
Looking ahead ● We are confident that 2016 will be another year of sustainable volume growth and progress on margins based on our expectations for – volume growth in all segments – a substantial improvement in FX-neutral net sales revenue per case in the full year in line with our performance prior
Slide 23: 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 24: Clear strategy Achieving results
Clear strategy Achieving 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 lead