RESULTS PRESENTATION 2014 FOURTH QUARTER AND FULL YEAR 18 February - - PowerPoint PPT Presentation

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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


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SLIDE 1

18 February 2015

RESULTS PRESENTATION

2014 FOURTH QUARTER AND FULL YEAR

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SLIDE 2

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”

  • r the “Group”).

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,

  • ur future dealings with The Coca-Cola Company, budgets, projected levels of consumption and production, projected raw

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

  • expectations. Moreover, neither we, nor our directors, employees, advisors nor any other person assumes responsibility

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

2

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SLIDE 3

Fourth quarter and full-year highlights

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  • Volume improvement in the quarter, resulting in better than expected

full-year volumes

  • Market share gains
  • Increase in FX-neutral revenue per case for the 14th consecutive

quarter

  • Gross profit margin growth in both periods, supported by successful

revenue growth management and favourable input cost environment

  • EBIT margin broadly stable in the full year, despite significant volume

deleverage, higher concentrate costs and strong FX headwinds, particularly in Q4

  • Further improvement in working capital position
  • Dividend proposal for €0.36
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SLIDE 4

Michalis Imellos Chief Financial Officer

Financial review

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SLIDE 5

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

  • 2.8%

Net Sales Revenue (€m) 1,510 1,575

  • 4.1%

6,510 6,874

  • 5.3%

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.

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SLIDE 6

Financial performance overview

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Q4’14 Q4’13 Ch. FY’14 FY’13 Ch. Comparable EBIT (€m) 57 68

  • 16.7%

425 454

  • 6.4%

Comparable EBIT Margin 3.8% 4.3%

  • 50bps

6.5% 6.6%

  • 10bps

Comparable Net Profit (€m) 30 34

  • 11.4%

277 293

  • 5.4%

Comparable EPS (€) 0.08 0.09

  • 11.7%

0.76 0.81

  • 5.6%

Free Cash Flow (€m)

  • 12

68 n/a 333 413

  • 19.4%

Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and non-recurring items.

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SLIDE 7

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%

  • 2.8%

Currency-neutral revenue per case 2.0% 2.5% Established Markets Volume

  • 2.8%
  • 5.4%

Currency-neutral revenue per case 3.1% 1.5% Developing Markets Volume 1.4%

  • 6.0%

Currency-neutral revenue per case 0.4% 2.8% Emerging Markets Volume 2.8%

  • Currency-neutral revenue per case

3.0% 3.5%

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SLIDE 8

Favourable input cost environment

  • Currency-neutral input cost per case decreased by

high single digits in the quarter and mid single digits in the full year

  • EU sugar costs continued to decrease year on year
  • World sugar costs remained on a downward trend
  • PET resin costs decreased significantly year on year

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SLIDE 9

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

  • 4.1%

6,510 6,874

  • 5.3%

Comparable Operating Expenses (€m) 461 469

  • 1.7%

1,901 1,987

  • 4.3%

Comparable OPEX as % of NSR 30.5% 29.8% 75bps 29.2% 28.9% 30bps Comparable EBIT Margin 3.8% 4.3%

  • 50bps

6.5% 6.6%

  • 10bps

Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and non-recurring items.

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SLIDE 10

Mixed segmental trends in comparable

  • perating profit, driven by FX

Q4 comparable EBIT

  • €17m

€3m €3m

  • €11m
  • 20
  • 10

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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SLIDE 11

Restructuring update

2014 recap

  • We incurred €31m in pre-tax restructuring costs in the

fourth quarter

  • For the full year, we incurred pre-tax restructuring costs of €62m
  • Annual restructuring benefits amounted to €35m in 2014

FY 2015 targets

  • We expect total pre-tax restructuring charges to amount to

€45m in 2015

  • Total annualised benefits from 2015 initiatives are expected at

c.€30m

  • Savings in 2015 from 2014 and 2015 initiatives are expected to

reach €44m

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SLIDE 12

Solid free cash flow generation in the full year

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€m FY’14 FY’13 Ch. EBITDA 742 756

  • 14

Cash from Working Capital 15 99

  • 84

Net Capital Expenditure

  • 354
  • 372

19 Free Cash Flow 333 413

  • 80

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

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SLIDE 13

Debt maturity portfolio $400m €600m €800m

2015 September 2016 November 2020 June

Diversified financial profile

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SLIDE 14

2015 Financial Outlook

Drivers of comparable EBIT

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  • Positive EBIT contribution from volume leverage
  • Revenue growth management initiatives, including pricing, to increase the top line
  • Input costs to remain a tailwind
  • Self-help initiatives to reduce cost base
  • FX expected to remain a significant headwind at current spot rates
  • Overall, we expect our combined initiatives to help mitigate the FX impact

Input costs Self-help Volume Revenue

  • incl. pricing

net of concentrate FX

Not to scale

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SLIDE 15

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

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SLIDE 16

Dimitris Lois Chief Executive Officer

Operational review and strategy

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SLIDE 17

Q4 volume by segment

Q4' 13 Established Developing Emerging Q4 '14

Sequential improvement in volume trends in all segments in the quarter

  • 3%

+1% 485 m u.c. 481 m u.c. +3%

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SLIDE 18

All categories gained pace in the quarter

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Year-on-year growth

Q4’14 FY’14 Sparkling 0%

  • 3%

Trademark Coca-Cola 0%

  • 3%

Coca-Cola Zero 8% 6% Juice 10% 5% Multon 19% 12% Water 1%

  • 2%

Energy 0% 1% Tea

  • 3%
  • 7%
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SLIDE 19

Established markets Gradual deceleration of negative volume trends

Trademark Coca-Cola

  • 6%

Coca-Cola Zero

+3%

Water

  • 2.5%

Volume

  • 5%

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%

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SLIDE 20

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

  • 3%

Coca-Cola Zero

+6%

Water

  • 8%

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Volume

  • 6%

Currency- neutral net sales revenue per case

+3%

All figures refer to full-year 2014, unless otherwise stated

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SLIDE 21

Emerging markets Stable performance in a volatile environment

Trademark Coca-Cola

Stable

Juice

+9%

Water

  • 1%

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

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SLIDE 22

In 2015 we will continue to pursue our strategy to

  • exploit volume leverage supported by

favourable country mix

  • expand market leadership in both Sparkling

and NARTD

  • implement revenue growth management

initiatives driven by our focus on OBPPC, single-serve packages as well as pricing mainly to address significant currency headwinds

  • continue with our proven self-help measures

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

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SLIDE 23

For further information on Coca-Cola Hellenic please visit our website at:

WWW.COCA-COLAHELLENIC.COM

Q&A

Or contact our investor relations team investor.relations@cchellenic.com +30.210.6183 100

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SLIDE 24

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

  • f winning in the

marketplace Strong focus on cost leadership and history of solid cash generation