GL GLOB OBAL AL CONSUM CONSUMER ER STAPLES CONFERENCE John F. - - PowerPoint PPT Presentation

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GL GLOB OBAL AL CONSUM CONSUMER ER STAPLES CONFERENCE John F. - - PowerPoint PPT Presentation

2016 BARCLAYS GL GLOB OBAL AL CONSUM CONSUMER ER STAPLES CONFERENCE John F. Brock CEO Damian Gammell COO Nik Jhangiani CFO 2016 BAR ARCLA CLAYS 1 Forward-Looking Statements This communication may contain statements, estimates or


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2016

BAR ARCLA CLAYS

2016 BARCLAYS

John F. Brock CEO Damian Gammell COO Nik Jhangiani CFO

GL GLOB OBAL AL

STAPLES CONFERENCE

CONSUM CONSUMER ER

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Forward-Looking Statements

This communication may contain statements, estimates or projections that constitute “forward-looking statements”. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “plan,” “seek,” “may,” “could,” “would,” “should,” “might,” “will,” “forecast,” “outlook,” “guidance,” “possible,” “potential,” “predict” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from Coca-Cola European Partners plc’s (“CCEP”) historical experience and its present expectations or
  • projections. These risks include, but are not limited to, obesity concerns; water scarcity and poor quality; evolving consumer preferences; increased competition and
capabilities in the marketplace; product safety and quality concerns; perceived negative health consequences of certain ingredients, such as non-nutritive sweeteners and biotechnology-derived substances, and of other substances present in their beverage products or packaging materials; increased demand for food products and decreased agricultural productivity; changes in the retail landscape or the loss of key retail or foodservice customers; an inability to expand operations in emerging or developing markets; fluctuations in foreign currency exchange rates; interest rate increases; an inability to maintain good relationships with their partners; a deterioration in their partners’ financial condition; increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters; increased or new indirect taxes in the United States or in other tax jurisdictions; increased cost, disruption of supply or shortage of energy or fuels; increased cost, disruption of supply or shortage of ingredients, other raw materials or packaging materials; changes in laws and regulations relating to beverage containers and packaging; significant additional labeling or warning requirements or limitations on the availability of their respective products; an inability to protect their respective information systems against service interruption, misappropriation of data or breaches of security; unfavorable general economic or political conditions in the United States, Europe or elsewhere; litigation or legal proceedings; adverse weather conditions; climate change; damage to their respective brand images and corporate reputation from negative publicity, even if unwarranted, related to product safety or quality, human and workplace rights, obesity or other issues; changes in, or failure to comply with, the laws and regulations applicable to their respective products or business operations; changes in accounting standards; an inability to achieve their respective overall long-term growth
  • bjectives; deterioration of global credit market conditions; default by or failure of one or more of their respective counterparty financial institutions; an inability to timely
implement their previously announced actions to reinvigorate growth, or to realize the economic benefits they anticipate from these actions; failure to realize a significant portion of the anticipated benefits of their respective strategic relationships, including (without limitation) The Coca-Cola Company’s relationship with Keurig Green Mountain, Inc. and Monster Beverage Corporation; an inability to renew collective bargaining agreements on satisfactory terms, or they or their respective partners experience strikes, work stoppages or labor unrest; future impairment charges; multi-employer plan withdrawal liabilities in the future; an inability to successfully manage the possible negative consequences of their respective productivity initiatives; global or regional catastrophic events; and other risks discussed in the CCEP prospectus approved by the UK Listing Authority and published on 25 May 2016 and the registration statement on Form F-4, file number 333-208556, that includes a proxy statement of Coca-Cola Enterprises, Inc. and a prospectus of CCEP, which was filed with the SEC by CCEP. You should not place undue reliance on forward- looking statements, which speak only as of the date they are made. 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. 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 their respective public statements may prove to be incorrect. This communication is not intended to form the basis of any investment activity or decision and does not constitute, may not be construed as, or form part of, an offer to sell or issue, or a solicitation of an offer or invitation to purchase or subscribe for, any securities or other interests in CCEP or any other investments of any description, a recommendation regarding the issue or the provision of investment advice by any party. No information set out in this communication or referred to herein is intended to form the basis of any contract of sale, investment decision or any decision to purchase securities in CCEP. No reliance may be placed for any purposes whatsoever
  • n this communication (including, without limitation, any illustrative modelling information contained herein), or its completeness.
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Creating the Coca-Cola System’s Largest Bottler

CCEP OVERVIEW

CCEP OPERATING OVERVIEW KEY TAKEAWAYS CCEP FINANCIAL OVERVIEW

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Norway Sweden Netherlands Germany France Great Britain Iceland Spain Portugal Andorra Luxembourg Monaco Belgium

A Major European

Consumer Packaged Goods Company

Form F-4; European Prospectus

Combines operations of CCE, Iberian, and German bottlers into a new Western European bottler, CCEP ~€11 billion in pro forma 2015 net sales, ~€1.8 billion in pro forma 2015 EBITDA Serving over 300 million consumers Selling, producing, and delivering ~2.5 billion unit cases in 2015 Listings on the Euronext Amsterdam, NYSE, Euronext London, and Spanish stock exchanges

The World’s Largest Independent Coca-Cola Bottler Based on Net Sales

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The Right Merger, At The Right Time

Solid Platform Strong Partnership with TCCC Topline Growth Opportunities Realize Synergy Benefits

A Winning Combination for Value Creation

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Solid Platform

World Class Supply Chain Capabilities Consistently One of the Top Suppliers Across Our Territories #1 NARTD Value and Volume Share Across Our Territories

Delivering Increasing Levels of Shareowner Value

AC Nielsen FY15
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Aligned Interests Focused on Profit Growth Improved Business Model

Strong Partnership with TCCC

New Incidence Pricing Model Provides Better Alignment… Brand/Package Profit Timing Speed of Decisions

EXAMPLE EXAMPLE

A Shared Vision to Drive Profitable Growth

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Go-To-Market Strategies Technology Portfolio Expansion

EXAMPLE EXAMPLE

Topline Growth Opportunities

Leverage Capabilities to Drive Topline Growth

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Increase Efficiency and Effectiveness of Supply Chain and Operating Expenses

EXA EXAMP MPLE: LE: LIGH LIGHT-WEIGH WEIGHTI TING NG 50 500ML BO 0ML BOTT TTLE LE

Realize Synergy Benefits

Great Britain Germany, Spain

~22g

~20g

On-Track to Realize Annual Run-Rate Pre-Tax Savings €315 - €340M by 1H19

Rounded
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Creating the Coca-Cola System’s Largest Bottler

CCEP OVERVIEW

CCEP OPERATING OVERVIEW

KEY TAKEAWAYS CCEP FINANCIAL OVERVIEW

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CA CATE TEGOR GORY MIX MIX & & CCE CCEP P VAL ALUE UE SHARE SHARE1

NARTD Opportunity for Growth

1. FY 2015 AC Nielsen CCEP territories, rounded 2. 2015 Euromonitor, rounded

COM COMMENTS NTS NARTD Category is ~€95B2 in Retail Sales Measured Channels are ~ €40B1 in Retail Sales Opportunity to Grow Share and Grow the Category

52% 24% 17% 30% 31% 46% 24%

NARTD Volume NARTD Value CCEP Value Share

CCEP Opportunity

~71%

4% 1%

Sparkling Still Water

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Category/Segments Value Volume NARTD 1 1 Sparkling 1 1 Energy 2 3 Stills & Water 4 5

Solid Position to Capture Growth Opportunities

AC Nielsen FY15

CCE CCEP P SHARE SHARE RANKING RANKING

Sparkling – drive segment value growth Energy – continue to grow share Stills & Water – selectively grow share

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Capturing the Sparkling Opportunity

EXAMPL EXAMPLES ES OPP OPPOR ORTUNITY TUNITY Focus on Immediate Consumption, Smaller Pack Sizes Leverage Brand Investment Drive Recruitment & Sampling Innovate Brand, Low/no Calorie, Packages

Grow the Sparkling Segment

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Capturing the Still/Water Opportunity

EXAMPL EXAMPLES ES OPP OPPOR ORTUNITY TUNITY

Selectively Participate in High Value Segments

Innovate Brand/Flavor, Low/No Calorie, Packages Expand Portfolio Within and Across Territories Pursue New Segments RTD Tea, Hot Coffee

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Marketing Highlights

Leveraging Assets Across Markets

TAST ASTE E TH THE E FEE FEELING LING UEF UEFA EUR A EURO O 2016 2016 OL OLYM YMPI PICS CS HOLID HOLIDAY Y PR PROGRA OGRAMM MMING ING

June 10 – July 10 August 5 – 21

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Engaging Customer Programs

Compelling Customer Programs and Point of Sale Driving Consumer Awareness/Action

EXAM EXAMPL PLES ES

Small Basket Opportunities

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Connecting with More Customers,

More Often

Improving In-Store Execution Leveraging Technology to Improve Sales Capabilities Investing in Cold-drink Equipment

EXAM EXAMPL PLES ES

Digitization Sales Optimization Tools

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Building on Supply Chain Excellence

Drive Efficiency and Effectiveness in a Customer Centric Supply Chain Common End-to-End Supply Chain Operations

Cost-efficient Production & Expandable Infrastructure

Standardizing Procurement Capabilities

Pan-European Scale Supported with Global Procurement Capability

Optimizing Cross Border Product Supply

Flexible & Efficient Logistics / Route-to-market Flexibility Responsible & Sustainable

Lightweighting PET Bottles & LED Lighting Across Facilities

EXAM EXAMPL PLES ES

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OPERA OPERATING TING EXPENSE EXPENSE Procurement Initiatives Resource Optimization Maintenance Cost Efficiency Reduce Management Duplication Leverage Shared Support Functions

Operating with Distinction

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Drive A New Culture

Customer Centric Empower and Place Accountability in Operating Units Centralize Activities That Achieve Scale or Enable a Common Approach Minimize the Integration Disruption to Our Core Business Build On a Culture of Success Provide Growth Opportunities to Our People

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Reasons to Believe

CCEP is a Leading CPG Company, Well Positioned to Lead NARTD Growth in Western Europe

Significant Headroom for Profitable Growth Leading Portfolio with Pervasive Availability Alignment with TCCC Proven Employees and Management Team Disciplined Financial Approach

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Creating the Coca-Cola System’s Largest Bottler

KEY TAKEAWAYS CCEP OVERVIEW

CCEP FINANCIAL OVERVIEW

CCEP OPERATING OVERVIEW

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PURS PURSUE UE DRIVE DRIVE GR GROW MAINT AINTAIN IN

Financial Framework

A Continued Focus on Sustainable Growth and Financial Returns

Free Cash Flow with Earnings In-line with Long-Term Targets Optimal Capital Structure and Financial Flexibility Disciplined Investment Shareowner Value with Increasing Return On Invested Capital

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Grow Free Cash Flow

Net Sales and Operating Income are comparable and currency neutral

STR STRATEG TEGY LON ONG-TER TERM M TAR ARGE GETS TS

Deliver Consistent Long-Term Profitable Growth Net Sales Growth in a Low Single-Digit Range Operating Income Growth in A Mid-Single-Digit Range Prudent Capital Investments CapEx ~ 4% - 5% of Net Sales Drive Cash from Operations Net Income to FCF Conversion Increasing to ~100%

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Maintain Optimal Capital Structure

CA CAPIT PITAL AL STR STRUC UCTURE TURE GO GOALS ALS

Operate Within a 2.5x to 3.0x Net Debt to EBITDA Leverage Ratio Maintain Investment Grade Debt Rating Periodically Re-Evaluate Optimal Structure

STR STRATEG TEGY

Maintain a Strong and Flexible Balance Sheet

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Balanced Debt Portfolio

Internal reports, rounded

DEB DEBT T MA MATU TURI RITIES TIES BY BY YEA YEAR R (€m) m)

350 350 471 493 700 350 500 350 250 500 500 500 200 200 300 300 17 18 19 20 21 22 23 24 25 26 28 30

Floating Fixed

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Pursue Disciplined Investment

CORE CORE BUSINE USINESS SS GR GROWTH WTH RES RESTR TRUCTU UCTURIN ING M&A M&A

Invest in Innovation to Drive Growth Invest Incrementally in Efficiency and Effectiveness Opportunistically Invest in M&A to Drive Incremental Shareowner Value

Invest in Attractive Return Opportunities

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Drive Shareowner Value

EPS and ROIC target is comparable and currency neutral; ROIC = After tax comparable operating income / (beginning & ending net debt & equity) / 2

LON ONG-TER TERM M TAR ARGE GETS TS RET RETUR URN N CA CASH SH TO O SH SHAR AREO EOWNERS NERS Diluted Earnings Per Share (EPS) Growth in a Mid to High Single-Digit Range Return on Invested Capital (ROIC) ≥ 20 Bps or More Annual Improvement Initial Dividend Payout Expected to be 30% to 40%

  • f Net Income

Return of Excess Cash to Shareowners Via Special Dividend And/Or Share Repurchases

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Looking Ahead

Focused on Both Near-Term and Long-Term Financial Objectives

OPE OPERA RATING ENVIR TING ENVIRONMENT ONMENT TO O REMAI REMAIN N CH CHALLE ALLENG NGIN ING G

Comparable and currency neutral; growth percentages relative to 2015 comparable financials

Invest for profitable topline growth Invest in restructuring to capture synergies Plan to achieve long-term objectives

MID T MID TO O LONG ONG- TE TERM RM 2016 2016

  • 2016 diluted earnings per share growth in a mid-teen range
  • Business trends have softened
  • 1H16 earnings with quarterly comparable income statements will be 22 September
  • Investor and analyst event to be webcast on 27 September
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Key Financial Takeaways

Focus on Generating Cash from Operations, Creating Long-Term Profitable Growth, and Driving Shareowner Value

Significant Opportunities to Create Value with the Formation of CCEP History of, and Commitment to, Managing the Levers of Our Business to Deliver Value Realistic about the Continued Challenging Environment

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Creating the Coca-Cola System’s Largest Bottler

CCEP OVERVIEW CCEP OPERATING OVERVIEW

KEY TAKEAWAYS

CCEP FINANCIAL OVERVIEW

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A Responsible & Sustainable Business

Commitment to the Well-Being of the Communities We Serve Shape and Inform Consumer Choice 2015 Dow Jones Sustainability Index Strong Alignment with TCCC

Lead in Sustainability While Driving Value for Stakeholders

Addressing Business Risks and Societal Needs

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Our People

Leveraging Capabilities Across Our Larger Organization Building Diversity Motivating Engagement and Excellence

Empowering a Team Driven, Inclusive, and Passionate Culture

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A Compelling Business Combination A Commitment to Driving Shareowner Value

Summary & Key Takeaways

Realistic about the Consumer Environment A Unique Opportunity for Profitable Growth

Creating the Leading Independent Coca-Cola Bottler and a Major European Consumer Packaged Goods Company

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2016 BARCLAYS

John F. Brock CEO Damian Gammell COO Nik Jhangiani CFO

GL GLOB OBAL AL

STAPLES CONFERENCE

CONSUM CONSUMER ER