John F. Brock Nik Jhangiani Chairman & CEO SVP & CFO 1 - PowerPoint PPT Presentation

John F. Brock Nik Jhangiani Chairman & CEO SVP & CFO 1

Forward-Looking Statements Included in this presentation are forward-looking management comments and other statements that reflect management’s current outlook for future periods. As always, these expectations are based The forward-looking statements in on currently available competitive, this presentation should be read in financial, and economic data along with conjunction with the risks and our current operating plans and are uncertainties discussed in our filings subject to risks and uncertainties that with the Securities and Exchange Commission (“SEC”), including our could cause actual results to differ materially from the results contemplated most recent Form 10-K and other by the forward-looking statements. SEC filings. 2

Agenda Business & Deliver CRS & Key Category Shareowner Takeaways Profile Value 3

CCE Overview BILLION NET SALES MILLION CONSUMERS BILLION SERVINGS ANNUALLY PRODUCTION FACILITIES THOUSAND EMPLOYEES Preeminent Western European bottler 2014 10-K, rounded 4

Vision & Operating Framework VISION STRATEGIC PRIORITIES Be the best LEAD category value growth beverage sales at serving our customers with EXCEL world class capabilities and service company DRIVE an inclusive and passionate culture Deliver consistent long-term profitable growth 5

Solid Foundation LARGE GROWIN WING LEADIN ING CATEGORY CATEGORY POSITION Participating in an attractive category 6

Large & Growing Category – NARTD ~$29B 2014 NARTD Growth 1 Measured Channels (Retail Value) $29B 1 $29B +2.0% $67B $67B Retail +0.6% Value $38B $38B 2 Sparkling Still & Water NARTD +1.2% Measured Channels Non-Measured Channels 1. AC Nielsen FY14, rounded 2. Canadean FY13, excludes tap/bulk water & dairy, rounded 7

Growing Category – NARTD NARTD Indexed to FMCG Retail Value Growth FMCG and NARTD have been negatively impacted by 1.1x FMCG challenging conditions NARTD NARTD continues to grow faster than 1.7x FMCG average 2013 2014 AC Nielsen 8

Leading NARTD Position CCE Share Ranking 1 NARTD Composition & CCE Mix CATEGORY & SEGMENTS VALUE VOLUME Sparkling 46% Stills NARTD 1 1 87% Water 1 1 35% Colas 3% Sparkling Flavors 1 1 19% 10% 1 2 NARTD Value CCE Volume Energy 3 3 CCE is focused on Stills & Water 3 5 high-value segments 1. AC Nielsen FY14 9 2. CCE Internal Reports

Consumer Preferred Brands Coca-Cola Sparkling Flavors Stills Trademark & Energy 69% Mix 18% Mix 13% Mix Selectively grow Grow sparkling segment value share CCE Internal Reports, rounded 10

Capturing Opportunity Successful Solid Marketing Great People Brands & Execution & Packages 11

Coca-Cola Trademark 1 20 2015 15 High ghligh ghts VALUE E SH SHARE E in all territories # Coca-Cola Life – territory expansion VOLUME ME SH SHARE E in all territories Coke Zero – continue to build consumer equity Diet Coke – ‘Regret Nothing’ campaign Package Innovation – 100th anniversary contour Coca-Cola Trademark – one brand strategy AC Nielsen FY14 12

Coca-Cola Life Aug 2014 Sep 2014 Dec 2014 Jan 2015 Feb 2015 Lower calories, sweetened from natural sources 13

Coca-Cola Zero Coca-Cola Zero Volume Growth 1 2014 2014 Growth 2 Growing value and volume share in each of our territories 2012 2013 2014 1. CCE Internal Reports, rounded 2. AC Nielsen FY14 14 14

100 Years of Contour Uniform Cap Embossed Logo Bigger label 15

‘Kiss Happiness’ Campaign Celebrating Coke’s iconic heritage 16

Commercials 17

One Brand Strategy One common identity Four distinct across all variants product benefits Uplifting No Calories Great Sweetness taste No Sugar Coke from taste natural Zero sugar sources Lower calorie One Iconic Brand, One Coca-Cola Family 18

‘choose happiness’ A Coca-Cola to suit every taste and lifestyle Putting choice at the heart of our trademark strategy 19

Energy Continues to Grow 2014 CCE Energy y Share 17.2% value share, growing +50 bps vs. PY 15.5% volume share, growing +130 bps vs. PY AC Nielsen FY14 20

Product Innovation & Expansion 21

Commercial – Finley 22

Other Areas of Growth Small Small Baskets Disco Discount Channel Digi Digital al Sales Co Cold Channel 23

2015 Marketing Calendar ‘COKE WITH MEALS’ 24

Customer Centric Supply Chain Procurement, Production, and Logistics Excellence Pan-European Cost-efficient scale supported with production & global procurement expandable capability infrastructure Flexible & Responsible & efficient logistics sustainable 25

Business Transformation Program Standardized Centralized Improved e.g. channel-focused e.g. shared services e.g. cold-drink sales and marketing center equipment service organization activities Continually enhancing our operating model to drive sustainable future growth 26

Our People Experienced t eam Solid bench strength Focus on diversity Investing in capabilities Drive an inclusive and passionate culture 27

Agenda Business & Deliver CRS & Key Category Shareowner Takeaways Profile Value 28

Financial Priorities Consistent Maximize Increase earnings in line free cash flow (FCF) return on invested with our long-term and maintain capital and deliver objectives financial flexibility shareowner value Continually enhancing our operating model to drive sustainable future growth 29

Financial Approach Grow profitably while investing Drive Cash from Operations CapEx prudently Optimize Capital Structure Maintain target leverage range Opportunistically Invest and/or Invest in high return M&A opportunities Return Cash to Shareowners and/or return cash to shareowners Focus on total shareowner return 30

Growing Free Cash Flow FCF ($M) Increasing cash from operations $677 $600 – $650 $524 Proven ability to manage CapEx Significant FX headwind in 2015 at recent rates 2013 2014 2015E 31

Improving Free Cash Flow Conversion FCF as a % of Net Income 90% Over time, we expect FCF to more closely align with Net Income 76% 2013 2014 Focus on annual ROIC improvement CCE internal Reports (excludes asset disposals), rounded 32

Cost of Sales 10% Maintain and opportunistically 15% expand gross margins 45% COGS ~85% of COGS is variable, Mix while ~15% is fixed 30% Of commodity-based costs, ~half are related to conversion Concentrate, Finished Goods Commodity Based Costs Excise Taxes Manufacturing, D&A, A/O CCE Internal Reports, rounded 33

Selling, Delivery, and Administrative (SD&A) Expand operating margins Supply with modest SD&A leverage Chain Labor 30% 45% Sales & Ownership Cost Marketing Management approach 30% Non-Labor, General 45% Admin Flexible routes-to-market 30% allows us to work with customers to optimize delivery D&A 10% D&A 10% CCE Internal Reports, comparable, rounded 34

Invest for Long-Term Growth 13% Long-term target 4.0% – 4.5% of net sales Capital ~2/3 supports growth 56% 31% Mix ~1/3 maintains existing assets Operations Cold Drink, Equipment IT, Other 10-K 2014 35

Balance Sheet Flexibility Net Debt 1 to EBITDA 2.6x 2.6 2.6x 2.6x 2.0x 2.0x 1.7x 1.7x 1.6x 2 1.6x 2010 2011 2012 2013 2014 Long-term target range 2.5x – 3.0x 1. 10-K, Net Debt is total 3rd party debt less cash & cash equivalents, comparable EBITDA 2. Pro forma FY10 assumes D&A of low to mid $300M 36

Balanced Debt Portfolio Debt Maturity ($M) 620 545 520 425 420 420 420 300 250 15 16 17 18 19 20 21 22 23 24 25 25 Annual maturities are < annual FCF 10-K 2014, CCE Internal Reports, rounded 37

Invest In High Return M&A OPPORTUNITIES EVALUATION CRITERIA Core business growth Cash flow of existing business Adjacent territories/categories Incremental value creation by CCE Incremental value to CCE’s core Other territories New business Risk, cost, and timeframe Opportunities evaluated against alternatives, including return of cash to shareowners 38

Future Cash Availability Annual Cash Available as % of Market Capitalization ~2-3% ~8 ~8-10% 10% ~6 ~6-7% 7% Organic growth Annual cash + = Net Income while maintaining available debt leverage Opportunity to generate significant cash annually for M&A and/or shareowners CCE Internal Reports, illustrative 39

Dividends Increased 2015 Annualized Rate By 12% $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 05 06 07 08 09 10 11 12 13 14 15E 8 consecutive years of increases 10-K, CCE Internal Reports, rounded 40

Cash Returned to Shareowners $3.6B $3.6 Share Repurchase Dividends Cash Distribution $1.2B $1.2 $1.2 .2B $1.0B $1.0B $1.0B $1.0B 2010 2011 2012 2013 2014 % of 11 11% 44% 44% 12% 12% 11% 11% 11% 11% Mkt Cap ~$8B of cash returned after the formation of new CCE through 2014 10-K, YE market cap, CCE Internal Reports, rounded 41