dbAcc dbAccess ess Damian Gammell , CEO GLOBAL CONSUMER CONFERENCE - - PowerPoint PPT Presentation

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dbAcc dbAccess ess Damian Gammell , CEO GLOBAL CONSUMER CONFERENCE - - PowerPoint PPT Presentation

dbAcc dbAccess ess Damian Gammell , CEO GLOBAL CONSUMER CONFERENCE Nik Jhangiani , CFO Forw orwar ard d Looking Sta Looking Statements tements This document contains statements, estimates or projections that constitute forward - looking


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dbAcc dbAccess ess

GLOBAL CONSUMER CONFERENCE

Damian Gammell, CEO Nik Jhangiani, CFO

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Forw

  • rwar

ard d Looking Sta Looking Statements tements

This document contains statements, estimates or projections that constitute “forward-looking statements” concerning the financial condition, performance, results, strategy and

  • bjectives of Coca-Cola European Partners plc and its subsidiaries (together “CCEP” or the “Group”). Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,”

“plan,” “seek,” “may,” “could,” “would,” “should,” “might,” “will,” “forecast,” “outlook,” “guidance,” “possible,” “potential,” “predict,” “objective” and similar expressions identify forward- looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks that could cause actual results to differ materially from CCEP’s historical experience and present expectations or projections. As a result, undue reliance should not be placed on forward-looking statements, which speak only as of the date on which they are made. These risks include but are not limited to those set forth in the “Risk Factors” section of CCEP’s 2018 Integrated Report/Annual Report on Form 20-F, including the statements under the following headings: Changing consumer preferences and the health impact of soft drinks (such as sugar alternatives); Legal and regulatory intervention (such as the development of regulations regarding packaging and taxes); Packaging and plastics; Competitiveness and transformation; Cyber and social engineering attacks; The market (such as customer consolidation and route to market); Economic and political conditions (such as continuing developments in relation to the UK’s exit from the EU, political instability in Catalonia, “Gilets Jaunes” protest movement and demonstrations in France); The relationship with TCCC and other franchisors; Product quality; and Other risks. Due to these risks, CCEP’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set out in CCEP’s forward-looking statements. Additional risks that may impact CCEP’s future financial condition and performance are identified in filings with the SEC which are available on the SEC’s website at www.sec.gov. CCEP does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable rules, laws and regulations. CCEP assumes no responsibility for the accuracy and completeness of any forward-looking

  • statements. Any or all of the forward-looking statements contained in this filing and in any other of CCEP’s respective public statements may prove to be incorrect.

Reconciliation and Definition of Alternative Performance Measures

The following presentation includes certain alternative performance measures, or non-GAAP performance measures. For a historical reconciliation of our alternative performance measures to the reported GAAP measures, please refer to our 2018 Integrated Report and Form 20-F, published on 14 March 2019. The alternative performance measures included herein should be read in conjunction with and do not replace the directly reconcilable GAAP measure. We are not able to reconcile forward looking non-GAAP performance measures to reported GAAP measures without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact or exact timing of items that may impact comparability.

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We Operate in a Large & Growing Market We have Scale with a Market Leading Position We have a Strong Portfolio of Products & Packs We are Jointly Creating Value with our Customers We have Great, Talented & Engaged People

Wha hat t Ex Excites cites Us Us About About the the Futur Future

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1 CCEP internal estimates 2 The Coca-Cola Company

Why W hy We e Belie Believe

Solid Track Record Market Set to Grow by 2-3% CAGR1 Investing in Key Capabilities Transforming Our Segmentation & Diversification World’s Best Brands Unrivalled Customer Coverage Solid, Flexible Balance Sheet Leading the Sustainability Conversation More Aligned than Ever Before with TCCC2

GIVI GIVING NG US US CONF CONFIDENCE IDENCE

In our mid-term annual objectives

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2025 target

40% women in leadership positions: now at 35%, up 3PPS

Saf afety ety incident incident rates tes halved since merger BEING INSPIRED BEING WELL BEING DEVELOPED BEING CONNECTED BEING VALUED BEING REWARDED

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Siz Size

  • f the Prize…

c

REVENUE

to grow at a

2% 2% to 3% 3% CAGR CAGR

(2017-2028) vs 1.1% (2010-2017)

VOLUME

to grow at a

0.5% 0.5% to 1.5% 1.5% CAGR CAGR

(2017-2028) vs 0.6% (2010-2017)

CCEP Markets

by 2028

(Cumulative NARTD incremental revenue

  • pportunity)

+€30bn

bn

6 CCEP internal estimates; Total NARTD Retail Sales Value (combination of Global Data FY2017 for AFH channels, Nielsen FY2017 data for Home channels)

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Key ey Unloc Unlock k is is Thr hrou

  • ugh

gh New New Se Segme gment ntation tion App pproa

  • ach

h – Ch Chan ange ges ar are e Un Unde derw rway ay

Requires different organisation structures Channel 1st Packaging 2nd More focused Unlocks consumption occasions

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HOME AWAY FROM HOME CUSTOMER CLUSTERS

12 channel segments

TO TO

key accounts

FROM…

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Ef Effor

  • rts

ts Und Under erpinn pinned ed by by Key ey Ca Capa pabilities bilities

DIGI GITA TAL EXCELLENCE THE BEST CUSTOM USTOMER ER SER SERVICE E STANDARDS IN THE INDUSTRY A MORE AGI GILE E AND ND DYNA NAMIC OR ORGA GANI NISA SATIO TION A NEW WA WAY OF WO WORKING WITH THE COCA-COLA COMPANY PA PASSIO SSION N FOR OR EX EXEC ECUTI UTION ON & WINNING VALUE SHARE IN ALL SEGMENTS WOR WORLD CLASS SS KEY KEY ACCOU OUNT NT TEAM TO DRIVE VALUE CREATION WITH A FOCUS ON CASH WOR WORLD CLASS SS SA SALES ES FOR ORCE E TO DRIVE DISTRIBUTION ACROSS SEGMENTS & CHANNELS

OU OUR FO FOCUS US IS IS TO O BEC ECOM OME E AN N EV EVEN EN BETTER ETTER TOTAL L BEV EVER ERAGE GE COM OMPANY NY

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Increased Productivity & Optimised Sell Time Improved Customer Experience Clearer Focus On Execution

CCE CCEP P Wide ide Ne Next xt Gen Gener eration tion Sa Sales les For

  • rce

ce Too

  • ol

l Roll

  • ll Ou

Out t Un Unde derw rway ay

PL PLUS REA S REAL TI TIME E WH WHOLESAL ESALER ER IN INTEG TEGRA RATI TION EN ENABLI LING NG CUST USTOM OMER ER ORD ORDER ER CAPTURE PTURE

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Acceler Accelerated In ted Investment estment in in Cooler Coolers s & F & Front

  • nt Line

Line

NET COOLER PLACEMENTS (‘000) UNRIVALL UNRIVALLED ED FRONT FRONT LINE: LINE: FIELD SALES FIELD SALES VISITS VISITS PER PER DAY DAY

8 12 14 16 2016 2017 2018 Target

Adding more feet

  • n the

street Incubator model for new products 25% AFH monthly coverage (vs 9% in 2016)

34 52 66 69 2016 2017 2018 2019E

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Supp Suppor

  • rte

ted d by by Our Our Div Diver ersifyi sifying ng Por

  • rtf

tfolio

  • lio

2017 2017- 2028 2028 GRO GROWT WTH CA CAGR GR1

SSD SSD Hydration dration RT RTD D Tea ea Energy nergy RT RTD Cof Coffee/ ee/ Plant lant Bas Based ed

Premiumise, Innovate & Accelerate Adult Expand & Premiumise Rapidly Scale & Expand Expand Inventively Drive New Growth

0.5 0.5-1% 1% 3-4% 4% 6-7% 7% 4-5% 5% 9-11% 11% TOTAL L NARTD TD REV EVENUE ENUE TO O GR GROW W 2-3% 3%

1 CCEP internal estimates, rounded

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4 3 5 6

Small & Premium Priority Packs Hydration Energy RTD coffee

PLANS PLANS FOR FOR 2019 2019 MORE MORE ALIGN ALIGNED ED THAN THAN EVER EVER BEFORE BEFORE WITH WITH

RTD tea Sparkling flavours & mixers Coke™

1 2

Capabilities Sustainability

9 10 10 8 7

Supply chain

12

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2019 Y 2019 Year ear-to to-Da Date te Highlights Highlights

#1 v #1 value alue

driving FMCG company across

  • ur territories +€220m

220m1

1. Source: Nielsen Strategic Planner Data to YTD to WE 21.04.19. 2. YTD through to 6th June 2019

PO PORTF RTFOLIO IO INN INNOVA VATIO TION AL ALIGN IGNED W ED WITH ITH T TCC CCC

1H dividend per share €0.62; up 19 19.0% % vs LY Share Buyback €375M YTD2; remainder of up to €1bn by end of 2019

INCREASED INCREASED SH SHAR AREH EHOLDER DER RETU RETURNS RNS

Commissioned 5 new can can & & glass glass lines

CON CONTIN TINUED ED INVES INVESTM TMEN ENT T TO TO DR DRIVE G IVE GROWT ROWTH ST STRON RONG ST STAR ART T TO TO 2019

Q1 2019 Sparkling Volume Growth +4.5%

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On T On Trac ack to k to Deliv Deliver er Our Our 2025 2025 Pac acka kaging ging Co Commitm mmitmen ents ts bu but Nee t Need t d to Go

  • Go Fast

aster er

100% 100%

Recyclability

100% 100%

Collection

50% 50%

Recycled PET

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100% R 100% Rec ecycla lability bility on Primar

  • n Primary

Pac acka kaging: ging: at t 98% 98%1

MOVING 100% OF OUR MULTIPACK CANS TO BOARD TRIALLING 50% RECYCLED CONTENT FOR SHRINK NEW SPRITE PACKAGING

1. Year End 2018

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100% Collection: 100% Collection: At 74% At 74%1

ACTIVELY SUPPORTING WELL-DESIGNED LEGISLATION & FOCUSING ON INNOVATION TO DRIVE HIGHER COLLECTION RATES

DEPOSIT LAW BILL No. 869 / XIII / 3ª (PAN) AND PUBLISHED ON REPUBLIC DIARY LAW Nº 69/2018

1 Year End 2018. Represents an aggregated number, based on packaging collection rates by material in each of our markets which is then applied to our own packaging volumes. The way that packaging collection rates are calculated may differ across our markets and therefore this aggregated number should be treated as an estimate.

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And We Know What A Well-Designed DRS Looks Like

Know what works e.g. NO, DE Know that DRS drives higher collection rates e.g. DE at 98% & NO at 95% vs GB at 59% Have therefore issued set of key principles Are part of the dialogue with local & national stakeholders Are aligned with TCCC

WE WE

DRS = deposit return scheme NO = Norway, DE = Germany

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50% 50% rPE rPET: : At At 28% 28%1

(C (CCE CEP P One ne of

  • f Big

Biggest gest Pur Purchaser hasers s at t 60,0 60,000t 00t in in 201 2019) 9)

On track for 50% rPET by 2025; will achieve 50% rPET in GB, SE & NL by 2020 Additional capacity coming on stream via

  • ur strategic rPET suppliers

Strategic partnerships with enhanced recycling firms Continuing to look for further opportunities

1. Year End 2018

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‘This is Forward’ Sust Sustaina ainabili bility ty Plan Plan Co Cont ntinu inues es To

  • Pr

Prog

  • gres

ess s Be Beyon

  • nd Pac

acka kagin ging g

50% absolute reduction in Greenhouse Gas Emissions versus 2010 100% of the electricity purchased in 2018 was from renewable sources 160k tonnes of sugar removed from our drinks since 2010

(16% reduction in sugar per litre since 2010)

11% reduction in water use ratio since 2010

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Free Cash Flow Generation2 Optimal Capital Structure Quality Profit Growth Disciplined Investments

Sus ustainable tainable Shareholder hareholder Returns Returns

Focu

  • cuse

sed d on

  • n Driving

Driving Sus Sustaina tainable ble Shar Shareholder eholder Retur eturns ns in 2019 in 2019

Dividend Payout5 ~50% Share Buyback

  • f up to

€1BN

OP1 growth +6 - 7% EPS1 growth +10 - 11% €1bn - €1.1bn ROIC3 +40bps Maintain ND2E4 2.5x-3.0x

1 Operating profit growth and EPS growth are comparable and fx-neutral (non GAAP performance measure, refer to slide 2) 2 Non-GAAP performance measure – refer to slide 2 3 Return on Invested Capital (non GAAP performance measure, refer to slide 2) 4 Net Debt to Adjusted EBITDA is a non-GAAP performance measure, see slide 2 5 Dividend Payout ratio a non-GAAP performance measure, refer to slide 2

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Also Also Reflected in eflected in Mid Mid-Ter erm m Objectiv Objectives es FREE FREE CASH FLOW5 OF AT LEAST €1BN

Revenue Low single digit growth Oper Operating ting Pr Profit

  • fit1

Mid single digit ROIC OIC3 +40BPS4 EPS EPS1,2 Mid single digit Div Dividend idend ~50% Payout Ratio Ca Cape pex ~5% revenue

1 Operating profit and diluted EPS are comparable and fx-neutral (non-GAAP performance measures refer to slide 2). 2 Diluted EPS growth is before share buybacks 3 Non-GAAP performance measure – refer to slide 2. 4 BPS = basis points. 5 Non-GAAP performance measure – refer to slide 2

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Why W hy We e Belie Believe

Solid Track Record Market Set to Grow by 2-3% CAGR1 Investing in Key Capabilities Transforming Our Segmentation & Diversification World’s Best Brands Unrivalled Customer Coverage Solid, Flexible Balance Sheet Leading the Sustainability Conversation More Aligned than Ever Before with TCCC2

Ultimate goal is to drive

SUST SUSTAIN AINABLE ABLE SHA SHARE REHOL HOLDER DER RETURNS RETURNS

1 CCEP internal estimates 2 The Coca-Cola Company

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dbAcc dbAccess ess

GLOBAL CONSUMER CONFERENCE

Damian Gammell, CEO Nik Jhangiani, CFO