18 February 2015
RESULTS PRESENTATION
2014 FOURTH QUARTER AND FULL YEAR
RESULTS PRESENTATION 2014 FOURTH QUARTER AND FULL YEAR 18 February - - PowerPoint PPT Presentation
RESULTS PRESENTATION 2014 FOURTH QUARTER AND FULL YEAR 18 February 2015 Forward looking statements Unless otherwise indicated, the condensed consolidated financial statements and the financial and operating data or other information included
18 February 2015
2014 FOURTH QUARTER AND FULL YEAR
Forward looking statements
Unless otherwise indicated, the condensed consolidated financial statements and the financial and operating data or other information included herein relate to Coca-Cola HBC AG and its subsidiaries (“Coca-Cola HBC” or the “Company” or “we”
This document contains forward-looking statements that involve risks and uncertainties. These statements may generally, but not always, be identified by the use of words such as “believe”, “outlook”, “guidance”, “intend”, “expect”, “anticipate”, “plan”, “target” and similar expressions to identify forward-looking statements. All statements other than statements of historical facts, including, among others, statements regarding our future financial position and results, our outlook for 2015 and future years, business strategy and the effects of the global economic slowdown, the impact of the sovereign debt crisis, currency volatility, our recent acquisitions, and restructuring initiatives on our business and financial condition,
material and other costs, estimates of capital expenditure, free cash flow, effective tax rates and plans and objectives of management for future operations, are forward-looking statements. You should not place undue reliance on such forward- looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect our current expectations and assumptions as to future events and circumstances that may not prove accurate. Our actual results and events could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described in the U.K. Annual Financial Report for Coca-Cola HBC AG and its subsidiaries for the year ended 31 December 2013. Although we believe that, as of the date of this document, the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these
for the accuracy and completeness of the forward-looking statements. After the date of the condensed consolidated financial statements included in this document, unless we are required by law or the rules of the UK Financial Conduct Authority to update these forward-looking statements, we will not necessarily update any of these forward-looking statements to conform them either to actual results or to changes in our expectations. 2
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Fourth quarter and full-year highlights
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full-year volumes
quarter
revenue growth management and favourable input cost environment
deleverage, higher concentrate costs and strong FX headwinds, particularly in Q4
Michalis Imellos Chief Financial Officer
Financial performance overview
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Q4’14 Q4’13 Ch. FY’14 FY’13 Ch. Volume (m u.c.) 485 481 0.8% 2,003 2,061
Net Sales Revenue (€m) 1,510 1,575
6,510 6,874
Currency-neutral NSR per case (€) 3.11 3.05 2.0% 3.25 3.17 2.5% Comparable Gross Profit Margin 34.3% 34.1% 20bps 35.7% 35.5% 20bps Comparable OPEX % NSR 30.5% 29.8% 75bps 29.2% 28.9% 30bps
Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and non-recurring items.
Financial performance overview
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Q4’14 Q4’13 Ch. FY’14 FY’13 Ch. Comparable EBIT (€m) 57 68
425 454
Comparable EBIT Margin 3.8% 4.3%
6.5% 6.6%
Comparable Net Profit (€m) 30 34
277 293
Comparable EPS (€) 0.08 0.09
0.76 0.81
Free Cash Flow (€m)
68 n/a 333 413
Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and non-recurring items.
14th consecutive quarter of growth in currency-neutral net sales revenue per case
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Q4’14 FY’14
Total CCH Volume 0.8%
Currency-neutral revenue per case 2.0% 2.5% Established Markets Volume
Currency-neutral revenue per case 3.1% 1.5% Developing Markets Volume 1.4%
Currency-neutral revenue per case 0.4% 2.8% Emerging Markets Volume 2.8%
3.0% 3.5%
Favourable input cost environment
high single digits in the quarter and mid single digits in the full year
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Efficiency improvements impacted by marketing investment and certain one-offs
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Q4’14 Q4’13 Ch. FY’14 FY’13 Ch. Net Sales Revenue (€m) 1,510 1,575
6,510 6,874
Comparable Operating Expenses (€m) 461 469
1,901 1,987
Comparable OPEX as % of NSR 30.5% 29.8% 75bps 29.2% 28.9% 30bps Comparable EBIT Margin 3.8% 4.3%
6.5% 6.6%
Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and non-recurring items.
Mixed segmental trends in comparable
Q4 comparable EBIT
€3m €3m
10 Emerging Developing Established Total CCH
68 17 14 3 37 54 57
Q4 ‘13 Q4’14
Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and non-recurring items. Certain differences in sums are due to rounding.
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Restructuring update
2014 recap
fourth quarter
FY 2015 targets
€45m in 2015
c.€30m
reach €44m
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Solid free cash flow generation in the full year
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€m FY’14 FY’13 Ch. EBITDA 742 756
Cash from Working Capital 15 99
Net Capital Expenditure
19 Free Cash Flow 333 413
Differences in the absolute year-on-year change are due to rounding
Free cash flow expectation for the 2013-2015 period revised to €1.1-1.2bn, due to acceleration of the adverse currency movements
Debt maturity portfolio $400m €600m €800m
2015 September 2016 November 2020 June
Diversified financial profile
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2015 Financial Outlook
Drivers of comparable EBIT
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Input costs Self-help Volume Revenue
net of concentrate FX
Not to scale
2015 – Management of foreign currency movements
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Unfavourable FX movement
Scenario 1 FX deteriorates from current spot rates
Currency depreciation linked to the oil price - Oil-linked input costs improve Additional pricing action in countries with currency depreciation Price elasticity of demand - Adverse impact of pricing on volume Self help intensified
Scenario 2 FX improves from current spot rates
Favourable FX movement Currency appreciation linked to the oil price - Oil-linked input costs deteriorate Additional investment in the market to fuel growth Favourable volume impact as a result of additional marketing investment Self help moderated
Dimitris Lois Chief Executive Officer
Q4 volume by segment
Q4' 13 Established Developing Emerging Q4 '14
Sequential improvement in volume trends in all segments in the quarter
+1% 485 m u.c. 481 m u.c. +3%
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All categories gained pace in the quarter
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Year-on-year growth
Q4’14 FY’14 Sparkling 0%
Trademark Coca-Cola 0%
Coca-Cola Zero 8% 6% Juice 10% 5% Multon 19% 12% Water 1%
Energy 0% 1% Tea
Established markets Gradual deceleration of negative volume trends
Trademark Coca-Cola
Coca-Cola Zero
+3%
Water
Volume
Italy 10% volume decline Challenging underlying economic and trading environment and tight liquidity in the trade Stable share Greece Volume growth (+2%) following five years of decline Water was the key growth category Underlying macroeconomic and trading environment remains fragile Switzerland 7% volume decline Deceleration in the negative trends in the quarter Good share gains
+
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All figures refer to full-year 2014, unless otherwise stated
Currency- neutral net sales revenue per case
+1.5%
Developing markets Focus on value
Poland Volume declined by 7% Positive volume in the quarter Our value-accretive volume initiatives contributed to the decline, while supporting good NSR/case growth Hungary Volume declined by 1% Volatile performance yet on decelerated pace Early signs of stabilisation Czech Republic Volume declined by 11%; across all key categories except Juice Volume was stable in the quarter Increased competitive pressure negatively impacted volume
Trademark Coca-Cola
Coca-Cola Zero
+6%
Water
20
Volume
Currency- neutral net sales revenue per case
+3%
All figures refer to full-year 2014, unless otherwise stated
Emerging markets Stable performance in a volatile environment
Trademark Coca-Cola
Stable
Juice
+9%
Water
Russia Volume at +1%, in a volatile year Coke grew by 1%, Juice by 12% Share Gains Cautious outlook Nigeria Volume at +4%; maintaining good momentum in Q4 Good growth in Water +7% & Sparkling +4% Nigeria to remain a key growth engine Romania Volume at -6% Trading environment remains competitive Juice continued to grow strongly; Sparkling declined by 6% Share gains
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Volume
stable
Currency- neutral net sales revenue per case
+3.5%
All figures refer to full-year 2014, unless otherwise stated
In 2015 we will continue to pursue our strategy to
favourable country mix
and NARTD
initiatives driven by our focus on OBPPC, single-serve packages as well as pricing mainly to address significant currency headwinds
We expect materially reduced input costs to mitigate the remaining negative impacts of FX volatility and the related uncertainty in some key markets.
Looking ahead
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We anticipate a challenging year and are optimistic that our business will prove its strengths in adversity
For further information on Coca-Cola Hellenic please visit our website at:
WWW.COCA-COLAHELLENIC.COM
Or contact our investor relations team investor.relations@cchellenic.com +30.210.6183 100
Long-term growth drivers
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Most known brands in the world Diverse geographic footprint with strong emerging market exposure Low per capita consumption with great potential to grow Solid track record
marketplace Strong focus on cost leadership and history of solid cash generation