cautionary statement

Cautionary Statement FORWARD-LOOKING STA TEMENTS This presentation - PowerPoint PPT Presentation

Cautionary Statement FORWARD-LOOKING STA TEMENTS This presentation contains forward-looking statement s These forward-looking st atement s relate t o Coca-Cola FEMS A, S .A.B. de C.V . it s S ubsidiaries ( KOF ) and t heir

  1. Cautionary Statement FORWARD-LOOKING STA TEMENTS This presentation contains “ forward-looking statement s” These forward-looking st atement s relate t o Coca-Cola FEMS A, S .A.B. de C.V . it s S ubsidiaries (“ KOF” ) and t heir businesses, and are based on KOF management ’s good faith expectations regarding KOF and it s businesses. Recipient s are cautioned not t o put undue reliance on such forward-looking st at ement s, which are not a guarantee of performance and are subj ect t o a number of uncertainties and other fact ors, many of which are out side KOF’s cont rol, t hat could cause actual result s of KOF and it s businesses t o differ materially from such st at ement s. KOF is under no obligation, and expressly disclaims any intent ion or obligation, t o update or alter any forward-looking st at ements, whet her as a result of new informat ion, fut ure event s or ot herwise. CONFIDENTIALITY The nat ure of all t he informat ion in t his presentat ion is propriet ary and confident ial. ADDITIONAL INFORMA TION AND WHERE TO FIND IT Document s filed by KOF are available at the S ecurities and Exchange Commission’s public reference room located at 450 Fifth S treet , N.W., Washingt on, D.C. 20594. Invest ors and security holders may call the Commission at 1-800-S EC-0330 for further information on the public reference room. Free copies of all of KOF’s filings wit h t he Commission may also be obt ained by direct ing a request t o: COCA-COLA FEMSA Mario Pani # 100, Piso 7, Col. S ant a Fé Cuaj imalpa 05348, México D.F ., México INVESTOR RELA TIONS Roland Karig / (52) 55 1519 5186 / roland.karig@ José Manuel Fernández / (52) 55 1519 5148 / j osemanuel.fernandez@ Tania Ramirez / (52) 55 1519 5013 / t ania.ramirez@ 2

  2. In the last two decades as a public bottler, KOF has travelled a successful growth journey… Coca-Cola FEMSA Volume (MMUC) 2013 Yoli Spaipa 4,500 Fluminense 2012 Filipinas FOQUE Santa Clara 3,000 2008 2011 REMIL G. Tampico CIMSA 2010 2003 Matte Leao 1,500 PANAMCO Estrella Azul 2007 Jugos del 1994 Valle Argentina 500 2000 2003 2006 2009 2012 2013 2014 Consumers (MM) 40 174 184 198 314 346 351 Plants 10 32 31 31 60 64 64 Distribution centers 68 247 206 210 246 329 329 3

  3. … to become the largest franchise bottler in the world, operating in two of the most attractive regions for its industry… 10 years ~ 26 Bn Transactions (1) CAGR (1) +8% ~ 4 Bn Unit Cases (1) US$ +11 Bn in Revenues (1) +13% US$ ~ 2 Bn in EBITDA (1) +11% Industry growth CAGR 14-19 (2) Southeast LATAM Asia Volume +3% +7% Value +4% +6% Southeast Asia (1) Figures reflect FY 2014. Philippines on a proforma basis 4 (2) Source Euromonitor, NARTD industry

  4. … as a strategic partner to the Coca-Cola System, representing close to 13% of global volume “ … we partnered with Coca- Cola FEMS A to j ointly acquire KO Volume (worldwide) (1) the Jugos del Valle business in 2007… Today, Del Valle is Volume Growth the first of our $1 billion 5y-CAGR brands with its roots in our (2009-2013) Latin America region.” 6% 7% Muhtar Kent, The Coca-Cola 21% Company – President and 15% PACIFIC CEO EA+A “ Our brands and our business have very deep roots in the 21% Philippines, and we look NORTH 29% 1% AM. forward to working with our LATAM 5% strong partners at Coca-Cola 14% FEMS A to capture future EUROPE opportunities for growth and investment and bring even more 0% social and economic value to customers and communities throughout the country.” Muhtar Kent, The Coca-Cola Company – President and CEO 5

  5. We delivered solid results during the first quarter of 2015 despite a complex environment… Committed with protecting our Currency neutral business’ profitability… excluding Venezuela  Our transactions outpaced volume +6% Revenues performance by at least one percentage point  We increased prices in most of our Operating +11% operations through our portfolio Income management strategy  Given a our hedging strategy we were Operative +9% cash flow able to mitigate most of the currency pressure during the quarter Earnings  We delivered EBITDA margin expansion +13% per share in most of our operations 6

  6. … and adjusting the translation of Venezuela results to the SIMADI exchange rate Our Venezuelan operation continues to deliver solid results, growing volume, pricing and expanding EBITDA margins in local currency Venezuela result s Volume Revenues EBITDA of t ot al mix VEB @ 192 2.2% 2.3% 7.6% 50 7.6% 8.1% 8.5% VEB @ 12 7.6% 27.8% 26.9% VEB @ 7 Effect of Venezuelan result s on t he consolidat ed result s depending t he exchange rat e used. Result s of t he 1 st quart er of 2015. Excludes t he Philippines.

  7. Our Strategic Framework guides our quest for long-term profitable growth Full Potential Innovation Outperform the Industry in Be at the forefront of terms of Revenue innovation to satisfy and Profits consumers and clients alike Continue developing our core competences and evolving our culture Defend our business Continue successful via a strong growth path in LatAm sustainability strategy and Southeast Asia Sustainability Acquisitions 8

  8. Our industry faces short term challenges that are being addressed rapidly and effectively… • Affordable portfolio with focus • Mexican economy on returnable presentations growing slower than expected and • Increasing the number of Brazilian transactions through single deceleration serve presentations at relevant continues price points • Significant • Reinforcing our point-of-sale depreciation across execution Latin American currencies • Organizational re-design to become a nimbler, faster and • Category Attacks more competitive company continue to threaten with the right capabilities our operations • Widening our portfolio offering • Changing consumer to satisfy the evolving needs of habits our consumers through relevant innovation 9

  9. … as part of a mid-term strategy to achieve operational excellence across our territories • Drive Colas Revenue Growth via segmented portfolio 1 and expansion of relevant prices points and packages • Seize Flavors opportunities by strengthening our core 2 Portfolio brands and innovating in products and packages • Improve NCBs competitive position to attain a leading 3 share position in key segments • Invest in point of sale execution through tailor-made 4 pictures of success and refrigeration Value 5 • Chain Increase JVs competitiveness and profitability 6 • Continue driving supply chain efficiency & productivity 7 • People Develop capabilities & streamline organization 10

  10. Our geographic footprint has one of the most attractive growth opportunities in the beverage industry… Latin America and Southeast Asia have a USD 28 Bn opportunity to be captured in the following years NARTDs value growth by type of country Bn US D, 2014 t o 2019 6 11 7 (6% ) 721 7 (10% ) 14 (7% ) (7% ) 21 (13% ) (20% ) 40 (38% ) 616 ~94% of growt h will come from emerging market s 2014 China Latam Africa SE Asia India Other Developed 2019 Emerging Markets Markets CAGR ‘14-’19 8% 4% 8% 6% 8% 2% 0.4% 3% Brazil contributes with Vietnam (2% ) and Indonesia 8% of NARTDs growth (2% ) are the largest growth contributors for SE Asia globally and Mexico 4% SE Asia includes: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand and Vietnam 11 Source: Euromonitor

  11. … and our current operations could capture +500 MM UC and +3.7 Bn USD in revenues in coming years Based on the current share and the industry growth profile our territories could generate healthy organic top-line growth in the next five years… +500 million unit cases +3.7 billion USD in revenues organically in the region for the next 5 years organically in the region for the next 5 years maintaining current share maintaining current share NARTD Volume Total Revenues (Bn UC) (Bn US D) Lat am Lat am 16% 19% 13% 34% MX MX 35% 40% PH 12% 4.5 14.7 16% PH 3.9 37% 25% 11.0 BR BR KOF KOF KOF KOF 2014 2019 2014 2019 12 S ource: Based on Company informat ion and Euromonit or indust ry proj ect ions for S oft Drinks. Assumes KOF share maint ains for 2019.

  12. Our industry faces global trends that are shaping consumer, channel and category evolution… Changing Health & Disruptive Urbanization Regulation demographics Wellness technologies Increase in middle class Migration from rural to Increase in focus on More stringent Technological in emerging markets urban areas in health and wellness regulation across the innovation will and elderly population emerging markets will continue to change value chain generate disruptions in developed ones consumer behavior across the value chain Changes in the consumer habits What to buy How to buy Where to buy Category Digital Channels 13


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