2005 Half Year Results Presentation 6 months to 1 July 2005 10 August 2005 1 10 August 2005 Driving customers and CCA’s profitability through the key drivers � Product innovation; � Non-carbonated beverage and food expansion; � Growing product availability through cold drink placements and outlet expansion; � Delivering levels of customer service which cannot be profitably matched by our competitors; � Backed by pricing and cost discipline. 10 August 2005 2 1
EPS Growth – Outstanding Progress Continues H1 EPS � 69% since 2001 $0.40 $0.34 $0.29 $0.22 $0.25 $0.19 $0.16 H1 $0.14 $0.20 $0.18 $0.16 H2 $0.13 $0.12 2001 2002 2003 2004 2005 3 10 August 2005 Dividend Growth – Outstanding Progress Continues H1 Dividend � 100% since 2001 $0.28 $0.23 $0.16 $0.185 $0.13 $0.14 $0.14 $0.11 H1 $0.07 $0.14 $0.13 $0.10 $0.08 H2 $0.07 2001 2002 2003 2004 2005 10 August 2005 4 2
H1 2005 – 9th Consecutive Half Year of Double-Digit Earnings Growth Group Net Profit � 16.8% to $145.2m � 16.8% (13.7% on a pre IFRS basis) Net Profit � 10.2% to $267.4m EBIT EPS � 11.9% to 19.8c (8.8% on a pre IFRS basis) ROCE � 0.6 pts to 19.9% (or up 0.3 pts to 11.0% on a pre IFRS basis) Free Cash remaining solid with strong beverage cash flow of Flow $137.8 million (up $24.9 million) and a seasonal cash outflow of $73.1 million for SPC Ardmona 5 10 August 2005 Improving Overall Shareholder Returns Target Dividend Payout Ratio 70% to 80% of Net Profit 2005 Interim 14.0 cents per share 71% payout ratio 100% franked 2004 Interim 12.5 cents per share 69% payout ratio 100% franked 2003 Interim 10.0 cents per share 63% payout ratio 50% franked 10 August 2005 6 3
Strong Group Performance Continues Group EBIT � 10.2% to $267.4m Beverage EBIT margin healthy 15.4% Food EBIT margin 12.1% (first 4 months) � 9.8% to $217.8m Australia Strong EBIT margin in a competitive market � 0.0% to $37.5m Pacific Competitive trading conditions in New Zealand � 93.0% to $0.9m South Consumer confidence impacting results but solid progress in Korea restructuring � 8.7% to $11.3m Strong earnings result for Indonesia Indonesia & and PNG PNG � $17.2m (4 months) SPC Business review completed and integration ahead of expectations Ardmona 7 10 August 2005 Australia – Strong EBIT Growth & Margin Improvement H1 2005 H1 2004 % Chg A$m Sales revenue 1,023.0 988.0 3.5% Sales revenue / case $6.60 $6.32 4.4% Volume (million unit cases) 154.9 156.3 -0.9% EBIT 217.8 198.4 9.8% EBIT Margin 21.3% 20.1% 1.2pts Capital Expenditure / Sales Revenue 4.4% 4.6% 10 August 2005 8 4
Australia CCA Continuing to Lead through Innovation diet Flavours Market CCA Share Rest of Market Zero Low sugar Sprite aimed at the growing health & wellbeing trend 9 10 August 2005 Australia Innovative Packaging – Lighter and Cheaper From July 2005, Powerade bottle: � 10% less resin � $2m savings from 2006 New improved packaging Sports Market same look New Powerade and feel 3 x 600ml pack CCA Share Rest of Market 10 August 2005 10 5
Australia Water Growth Accelerating – CCA Core Brands � 3 out of the top 5 water brands in Australia are CCA’s, with ‘Mount Franklin’ a strong number one, followed by ‘pump’ and ‘Neverfail’ Ambient 1L pack Packaged Water Market Racks New 4x1.5L New CCA Share Rest of Market pack 6x600mL pack 11 10 August 2005 Australia Water Growth Accelerating – Neverfail � New commercial sales force created to focus on growing business � New home dispensing unit to be launched in Oct – kitchen friendly 10 August 2005 12 6
Australia Fruitopia J – Kick Starting CCA’s Juice Growth � Relaunched in June 2005 with improved formulation, new packaging a fresh [2L] offering for grocery. � Increased media support targeting a leading share of voice in the juice segment. Australia Launch of Fruitopia Classic in Chilled Juice Section 8 Flavours Premium Orange Pulp Free Orange Orange & Mango Five Fruits Cloudy Apple Orange & Apricot Apple & Blackcurrant Apple & Guava 10 August 2005 14 7
Australia Addressing the Health and Wellbeing Market RTD Tea Market CCA Share Rest of Market 15 10 August 2005 Australia.. Using equipment innovation and our investment to drive customer profitability New Subway Coolers New Woolworths coolers New Convenience & Petroleum Coolers 10 August 2005 16 8
Australia.. Using equipment innovation and our investment to drive customer profitability HORECA Mini Retro 17 10 August 2005 Australia – Improved In-Market Execution Packs and Brands Horeca Universe (no. of outlets) CCA Share Rest of Market Equipment Sales / Distribution 10 August 2005 18 9
Pacific – New Zealand & Fiji A$m HY05 HY04 % Chg Sales revenue 219.8 199.4 10.2% Sales revenue / case $6.66 $6.21 7.2% Volume (million unit cases) 33.0 32.1 2.8% EBIT 37.5 37.5 0.0% EBIT Margin 17.1% 18.8% -1.7pts Capital Expenditure / Sales Revenue 4.4% 2.0% 19 10 August 2005 Pacific – New Zealand & Fiji KEY DRIVERS � Continuing focus on product innovation, non-carbonated beverages expansion, cold drink placement and new outlet expansion to generate revenue growth � Energy and sports drinks continue to achieve strong double digit growth � Launch of ‘Coke with Raspberry’ and ‘Diet Coke with Raspberry’ on target � Water category continuing to grow strongly led by ‘pump’, ‘Kiwi Blue’ and ‘Aquashot’ � Boosting business development with rollout of customer service centre and implementation of HORECA strategy 10 August 2005 20 10
South Korea – increased marketing not yet flowing through to financials A$m HY05 HY04 % Chg Sales revenue 310.5 288.2 7.7% Sales revenue / case $4.93 $4.52 9.1% Volume (million unit cases) 63.0 63.7 -1.1% EBIT 0.9 12.9 -93.0% EBIT Margin 0.3% 4.5% -4.2pts Capital Expenditure / Sales Revenue 5.3% 8.5% 21 10 August 2005 South Korea – successful launch of Minute Maid Juice KEY DRIVERS � Upgrading our sales force capabilities � TCCC significantly up weighted spending � Expand non-CSD beverage portfolio � Modernising our sales execution practices and development of model markets � Successful launch of ‘Minute Maid’ with 2 million cases sold since June launch � Backed by formation of CCA Asia - increasing our management focus and capability in the region 10 August 2005 22 11
Indonesia & PNG – Strong Result – Indonesian EBIT 27% in local currency A$m HY05 HY04 % Chg Sales revenue 178.1 188.4 -5.5% Sales revenue / case $3.39 $3.79 -10.6% Volume (million unit cases) 52.5 49.7 5.6% EBIT 11.3 10.4 8.7% EBIT Margin 6.3% 5.5% 0.8pts Capital Expenditure / Sales Revenue 9.5% 5.3% 23 10 August 2005 Indonesia & PNG – Strong Result in a Challenging Environment KEY DRIVERS � Expanding the soft drink culture � Improving sales execution � Cold drink cooler placement and outlet expansion � Additional resources deployed to the region by CCA and TCCC � Significant increase in the size of the sales force supported by training and development programs � On track to increase Indonesian cooler base by 20% this year 10 August 2005 24 12
First 4 months on target 4 months HY05 HY04 A$m % Chg Sales revenue 141.9 n/a n/a EBIT 17.2 n/a n/a EBIT Margin 12.1% n/a n/a Capital Expenditure / Sales Revenue 2.9% n/a 25 10 August 2005 Opportunities identified from SPCA review KEY DRIVERS � Product and package innovation � New channel opportunities � Key account management skills � Supply chain efficiencies � Increasing user-friendliness of packaging and range of products in the high growth plastic resealable containers � Leverage CCA’s distribution capabilities to take SPCA products into new channels � Supply chain improvements in procurement and manufacturing 10 August 2005 26 13
2005 Half Year Results Presentation John Wartig, CFO 10 August 2005 27 10 August 2005 H1 2005 – Key Metrics Remain Strong chg chg HY05 HY04 A$m post IFRS pre IFRS EBIT 267.4 242.7 +10.2% +10.2% Margin % 14.3% 14.6% -0.3pts -0.3pts NPAT 145.2 124.3 +16.8% +13.7% EPS 19.8c 17.7c +11.9% +8.8% Interim dividend 14.0c 12.5c +12.0% +12.0% Payout 70.7% 70.6% 10 August 2005 28 14
H1 2005 – Key Metrics Remain Strong HY05 HY04 A$m Change ROCE 19.9% 19.3% +0.6pts ROCE (pro forma pre IFRS) 11.0% 10.7% +0.3pts Net debt 2,089.2 1,554.8 534.4 Interest cover 4.3x 4.3x Free cash flow 64.7 112.9 (48.2) - Beverages 137.8 112.9 24.9 - SPCA (73.1) - (73.1) 29 10 August 2005 EBIT – Base Business Continues to Deliver Strong Results (41.4) 58.2 (13.7) 17.2 267.4 4.3 242.7 EBIT HY04 Volume Price & Mix COGS Indirect SPCA EBIT HY05 costs & other 10 August 2005 30 15
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