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 herein relate to Coca-Cola HBC AG and its subsidiaries (“Coca -Cola HBC” or the “Company” or “we” or 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, our 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
Fourth quarter and full-year highlights ● 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 14 th 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 3
Financial review Michalis Imellos Chief Financial Officer
Financial performance overview 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. 5
Financial performance overview 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% 0.08 0.09 -11.7% 0.76 0.81 -5.6% Comparable EPS ( € ) 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. 6
14 th consecutive quarter of growth in currency-neutral net sales revenue per case Q4’14 FY’14 Total CCH 0.8% -2.8% Volume 2.0% 2.5% Currency-neutral revenue per case Established Markets -2.8% -5.4% Volume 3.1% 1.5% Currency-neutral revenue per case 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% 7
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 8
Efficiency improvements impacted by marketing investment and certain one-offs 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. 9
Mixed segmental trends in comparable operating profit, driven by FX Q4 comparable EBIT Q4’14 Q4 ‘13 Total CCH 57 68 - € 11m Established 17 14 € 3m Developing 3 0 € 3m Emerging 37 54 - € 17m -20 -10 0 10 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. 10
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 11
Solid free cash flow generation in the full year € 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 Free cash flow expectation for the 2013-2015 period revised to € 1.1-1.2bn, due to acceleration of the adverse currency movements Differences in the absolute year-on-year change are due to rounding 12
Diversified financial profile Debt maturity portfolio € 800m € 600m $400m 2015 2016 2020 September November June 13
2015 Financial Outlook Drivers of comparable EBIT Revenue Volume incl. pricing Input costs Self-help FX net of concentrate 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 ● Not to scale 14
2015 – Management of foreign currency movements Scenario 1 Scenario 2 FX deteriorates from current spot rates FX improves from current spot rates Unfavourable FX movement Favourable FX movement Currency depreciation linked to the oil Currency appreciation linked to the oil price - price - Oil-linked input costs improve Oil-linked input costs deteriorate Additional pricing action in countries Additional investment in the market with currency depreciation to fuel growth Favourable volume impact as a Price elasticity of demand - Adverse result of additional marketing impact of pricing on volume investment Self help intensified Self help moderated 15
Operational review and strategy Dimitris Lois Chief Executive Officer
Sequential improvement in volume trends in all segments in the quarter Q4 volume by segment +3% 485 m u.c. +1% 481 m u.c. -3% Q4' 13 Established Developing Emerging Q4 '14 17
All categories gained pace in the quarter Year-on-year growth Q4’14 FY’14 Sparkling 0% -3% Trademark Coca-Cola 0% -3% Coca-Cola Zero 8% 6% 10% 5% Juice Multon 19% 12% Water 1% -2% Energy 0% 1% Tea -3% -7% 18
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