2019 ccamatil.com ANNUAL GENERAL MEETING Presentation to Shareholders 15 May 2019 Ilana Atlas, Chairman Alison Watkins, Group Managing Director
DISCLAIMER ccamatil.com Coca-Cola Amatil advises that these presentation slides and any related materials and cross referenced information, contain forward looking statements which may be subject to significant uncertainties outside of Coca- Cola Amatil’s control. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Actual future events may vary from these forward looking statements and you are cautioned not to place reliance on any forward looking statement. Coca-Cola Amatil 2019 Annual General Meeting 2
ccamatil.com 2019 ANNUAL GENERAL MEETING Ilana Atlas, Chairman Coca-Cola Amatil 2019 Annual General Meeting 3
ccamatil.com ccamatil.com CHAIRMAN’S ADDRESS Ilana Atlas, Chairman Coca-Cola Amatil 2019 Annual General Meeting 4
ccamatil.com ccamatil.com GROUP MANAGING DIRECTOR'S PRESENTATION Alison Watkins, Group Managing Director Coca-Cola Amatil 2019 Annual General Meeting 5
COCA-COLA AMATIL GROUP LEADERSHIP TEAM ccamatil.com Alison Watkins Group Managing Director Martyn Roberts Betty Ivanoff Kate Mason Peter West Kadir Gunduz Group Chief Financial Group General Counsel Group Director, Managing Director, Managing Director, Officer People & Culture Australian Beverages Indonesia & Papua New Guinea Debbie Nova Chris Sullivan Liz McNamara Shane Richardson Chris Litchfield Group Chief Group Director, Group Director, Managing Director, Managing Director, Information Officer Partners & Growth Public Affairs, Alcohol & Coffee New Zealand & Fiji Communications & Sustainability Coca-Cola Amatil 2019 Annual General Meeting 6
COCA-COLA AMATIL – OUR PEOPLE ccamatil.com We know that our success as an organisation depends on our people. We are proud of our culture and values, and the distinctive and positive contribution our people make. Coca-Cola Amatil 2019 Annual General Meeting 7
PERFORM: OUR PLANS REFLECT ccamatil.com THREE STRATEGIC THEMES LEAD Strengthening category leadership position Leading beverage brands Innovative marketing to drive equity and sales Evolving portfolio that adapts to changing consumer preferences EXECUTE Step change in productivity and in-market execution World-class customer servicing capability Route to market that provides customer diversification and real competitive advantage Effective leverage of our large-scale, low-cost manufacturing, sales and distribution capability PARTNER Better alignment with The Coca-Cola Company and our other partners Shared vision of success and aligned objectives Joint plans for growing system profitability Balanced share of risk and rewards Coca-Cola Amatil 2019 Annual General Meeting 8
SEGMENT EBIT CONTRIBUTIONS ccamatil.com % of Group Change Underlying EBIT $ million FY18 FY17 underlying % EBIT Australian Beverages 376.1 412.6 (8.8) 59.3% New Zealand & Fiji 112.4 104.8 7.3 17.7% Indonesia & Papua New Guinea 90.9 (6.4) 85.1 13.4% Alcohol & Coffee 55.7 49.7 12.1 8.8% Corporate & Services 5.2 20.3 (74.4) 0.8% Total Continuing Operations 634.5 678.3 (6.5) Coca-Cola Amatil 2019 Annual General Meeting 9
GROW: WE HAVE MULTIPLE ccamatil.com GROWTH PATHWAYS GROWTH WITHIN Additional growth within our businesses Leveraging and extending brands and capabilities (eg our route-to-market) Building and adding new brands and channels GROWTH BETWEEN Additional growth between our businesses International coffee (eg Indonesia) International beer and rum (eg Fiji to Australia and New Zealand) GROWTH BEYOND Growth beyond our current businesses Amatil X Additional Coca-Cola territories Extending Amatil brands and capabilities to new geographies Coca-Cola Amatil 2019 Annual General Meeting 10
STRONG ORGANISATION: ccamatil.com UNDERPINS ALL OUR PLANS FIT FOR PURPOSE Develop a fit for purpose organisational and governance structure Major restructure of our People and Culture and our IT teams to embed a “One Amatil” approach. Continue our group wide approach to all our owned and leased property arrangements LEADERSHIP Drive leader led growth Leadership capability development Invest in our people and create opportunities for growth (eg Indonesian Step and Step Up programs) Build capability to share across all our geographies TRUST AND REPUTATION Build trust and our reputation with stakeholders Binding sustainability goals for 2020 Improvement in employee engagement over two years Coca-Cola Amatil 2019 Annual General Meeting 11
OUTLOOK ccamatil.com 2019 OUTLOOK 2019 will be the second year of a two-year transition phase for the Group. Australian Beverages: we will be positioned for growth in 2020 with the completion of the additional $10 million of investment in our Accelerated Australian Growth Plan to increase our salesforce and, with container deposit schemes in NSW and Queensland substantially embedded by the end of 2019 Indonesia: we are encouraged by the volume growth we delivered from April 2018 and will continue to deliver our Accelerate to Transform strategy with additional direct marketing expenditure to be invested in 2019; however macroeconomic conditions, weak Indonesian Rupiah, higher commodity costs and current consumer spending trends are expected to continue New Zealand & Fiji, Papua New Guinea and Alcohol & Coffee : expected to deliver growth in line with our Shareholder Value Proposition Corporate & Services: an EBIT loss of $10 to $12 million expected in line with the outlook provided in November 2018 due to lower property rental and services earnings, increased Group capability and investment in IT platforms NON-TRADING ITEMS As part of our cost optimisation programs in Australian Beverages, we are expecting one-off costs in 2019 of up to $30 million We are pursuing additional opportunities within our Property Division which may result in one-off gains in 2019, partially offsetting the one-off costs TARGET FROM 2020 AND BEYOND We remain committed to our Shareholder Value Proposition targeting a return to delivery of mid-single digit earnings per share growth from 2020 This will depend on the success of revenue growth initiatives in Australia, Indonesian economic factors and regulatory conditions in each of our markets Coca-Cola Amatil 2019 Annual General Meeting 12
OUTLOOK: CAPEX, DIVIDENDS AND ccamatil.com BALANCE SHEET CAPITAL EXPENDITURE 2019 Group capex expected to be similar to Group capital expenditure in 2018, reflecting the deferred payments from 2018 and continued deployment of capital in Indonesia, including a second affordable small sparkling pack line DIVIDENDS Continue to target medium term dividend payout ratio of over 80 per cent It is anticipated that franking will be at a lower level in the future due to the increasing proportion of earnings from outside Australia BALANCE SHEET Balance Sheet to remain conservative with flexibility to fund future growth opportunities Expecting to maintain strong return on capital employed We will seek to maximise value for shareholders by pursuing additional opportunities within our Property Division Coca-Cola Amatil 2019 Annual General Meeting 13
ccamatil.com 2019 ANNUAL GENERAL MEETING Ilana Atlas, Chairman Coca-Cola Amatil 2019 Annual General Meeting 14
ITEM 1 ccamatil.com Annual Reports To consider the Annual Report, the Financial Report and the Reports of the Directors and of the External Auditor for the year ended 31 December 2018. There is no vote for this item. Coca-Cola Amatil 2019 Annual General Meeting 15
ITEM 2 ccamatil.com Adoption of FY2018 Remuneration Report To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To adopt the Company’s Remuneration Report for the year ended 31 December 2018.” Please note that the vote on this resolution is advisory only, and does not bind the Directors or the Company. An explanatory note to this item appears on page 4 of the Notice of Meeting. Coca-Cola Amatil 2019 Annual General Meeting 16
ITEM 2 ccamatil.com Adoption of FY2018 Remuneration Report Proxy & Direct For Undirected Against Total Votes Resolution 1 520,700,208 1,024,431 12,462,659 534,187,298 % of vote 97.48% 0.19% 2.33% 73.78% of issued capital Coca-Cola Amatil 2019 Annual General Meeting 17
ITEM 3 ccamatil.com Re-Election of Board Endorsed Directors Mr Massimo (John) Borghetti, AO Mr Mark Johnson Coca-Cola Amatil 2019 Annual General Meeting 18
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