ccamatil.com COCA-COLA AMATIL INVESTOR MEETINGS FRANKFURT, LONDON, EDINBURGH 29 May – 1 June 2017 Alison Watkins Group Managing Director David Akers Group Head of Investor Relations
COCA-COLA AMATIL ccamatil.com ccamatil.com GROUP OVERVIEW INDUSTRY AND MARKETS REPORTING SEGMENTS Publicly listed Australian company Non-alcoholic ready to drink Australian Beverages (ASX: CCL) – market capitalisation beverages in Australia, New New Zealand & Fiji approximately $7.0B (25 May 2017) Zealand, Fiji, Samoa, Indonesia, Indonesia & Papua New Guinea Top 10 Coca-Cola bottler globally Papua New Guinea Alcohol & Coffee FY16 Revenue $5.25B Alcohol and coffee beverages in Corporate, Food & Services FY16 Underlying EBIT $683.4M Australia, New Zealand and Fiji with FY16 Underlying NPAT $417.9M additional export potential Investment grade credit ratings (A3/ Food products through SPC, BBB+) predominantly in Australia Coca-Cola Amatil Investor Presentation 2
OUR PLANS REFLECT ccamatil.com ccamatil.com THREE STRATEGIC THEMES LEAD EXECUTE PARTNER Strengthening category Step change in productivity and Better alignment with The Coca- leadership position in-market execution Cola Company and our other Leading brands in each major World-class customer servicing partners NARTD category in each market capability Shared vision of success and aligned Up-weighted levels of innovative Route-to-market that provides objectives marketing to continually strengthen customer diversification and real Joint plans for growing system brand equity competitive advantage profitability Evolving portfolio that adapts to Effective leverage of our Balanced share of risk and rewards changing consumer preferences large-scale, low-cost manufacturing, sales and distribution capability Coca-Cola Amatil Investor Presentation 3
SHAREHOLDER ccamatil.com VALUE PROPOSITION We are focused on generating attractive sustainable returns for shareholders NPAT & ROCE Targeting shareholder Investment case EBIT drivers drivers value creation Revenue growth plans and Modest capex for Coca-Cola franchisee continuous cost focus developed markets Mid single-digit across the group with leading brands EPS growth Route-to-market with + scale and reach Core developed Growth capex for + Targeting low market Indonesia single-digit franchises funded via TCCC equity Large-scale, modern, EBIT growth (Australia and injection low-cost infrastructure Attractive dividends: New Zealand) above 80% + + payout ratio Steady cash flow from Developing Targeting markets core Australia and New Continuous working double-digit (Indonesia, capital management Zealand franchises EBIT growth Papua New + Guinea and Fiji) Growth opportunities + + Strong balance sheet including Indonesia Targeting Alcohol and Alcohol & Coffee Strong return on capital Bolt-on acquisitions double-digit & Coffee employed providing upside EBIT growth and SPC Coca-Cola Amatil Investor Presentation 4
COCA-COLA FRANCHISEE ccamatil.com WITH LEADING BRANDS Our investment case is based on being a Coca-Cola franchisee with leading brands across Sparkling and Still Beverages Australia (1) New Zealand (2) Indonesia (3) Approximate market volume composition Approximate market volume composition Approximate market volume composition Approximate CCA share Approximate CCA share Approximate CCA share Cola Sports Flavours Water Juice Energy Tea Cola Sports Flavours Water Adult Tea Juice Sparkling Juice Tea Dairy Sports Dairy Adult Energy 1. Sources: Aztec Australian Grocery Weighted and AU Convenience scan. MAT 1H16 2. Sources: Nielsen Total MM, YE 2015. 3. Sources: Nielsen; internal estimates. Excludes water ~60% of the NARTD market. Oct 2016. Coca-Cola Amatil Investor Presentation 5
ROUTE-TO-MARKET WITH SCALE AND REACH AND ccamatil.com LARGE-SCALE, MODERN, LOW-COST INFRASTRUCTURE Our operations and route-to-market has significant scale and reach and we have large scale, modern and low cost infrastructure Our operations Our footprint across Asia Pacific Australian New Fiji Indonesia Papua Beverages Zealand New Guinea Production 12 4 1 8 2 facilities Production 40 11 4 37 6 lines Warehouses 15 3 2 8 7 Customers* 115,000 25,000 3,000 720,000 10,000 (approx.) Coolers 160,000 40,000 3,600 330,000 17,000 (approx.) * Includes outlets served indirectly. Coca-Cola Amatil Investor Presentation 6
THE COCA- COLA COMPANY’S ccamatil.com ccamatil.com STRATEGY TO FOCUS ON CHOICE, CONVENIENCE AND THE CONSUMER ACCELERATE GROWTH TAKING MORE AND OF CONSUMER CENTRIC BOLDER ACTION TO BRAND PORTFOLIO REDUCE SUGAR Source: The Coca-Cola Company Presentation April 2017 Coca-Cola Amatil Investor Presentation 7
WE ARE ALSO DEVELOPING ccamatil.com ccamatil.com STRONG RELATIONSHIPS WITH OTHER LEADING PARTNERS MONSTER ENERGY ALCOHOL & COFFEE Coca-Cola Amatil Investor Presentation 8
AUSTRALIAN BEVERAGES ccamatil.com We are implementing our strategy in three phases 2015 2016 Phase 2 Shareholder Strategic Phase 3 Phase 1 Value Themes Cost optimisation to Return to growth Stabilise earnings support continued Proposition rebalancing Rebalancing the portfolio Refreshed and strengthened Lead Focus on Sparkling Beverages category growth plan Accelerate Still Beverages Targeting Identified at least a further $100M Revenue growth management of cost optimisation opportunities low single Execute Route-to-market digit EBIT Initiatives to remodel supply chain targeting a Cost optimisation $100M growth further ~$20M cost savings from 2020 Better alignment with TCCC Planning for incidence Partner pricing from 2H17 Monster Energy agreement Coca-Cola Amatil Investor Presentation 9
AUSTRALIAN BEVERAGES ccamatil.com COST OPTIMISATION & REINVESTMENT Indicative timeline of cost optimisation and reinvestment programs Targets 2014 2015 2016 2017 2018 2019 2020 1 st Announced $100 million delivered Oct14 $100M ahead of schedule 2 nd Announced At least a further $100 million $100M Oct16 cost optimisation ~$20 million Announced cost ~ $20M Feb17 optimisation Coca-Cola Amatil Investor Presentation 10
NEW ZEALAND ccamatil.com Since 2014, we have delivered on our strategy of volume based growth Shareholder Price and cost out led results Volume based growth plans Value Proposition Recession & Build for Recovery Phase Earthquake growth Targeting low single digit EBIT growth 2009-2012 2013-2014 2015 2016 Volume Net Sales Revenue Coca-Cola Amatil Investor Presentation 11
INDONESIA ccamatil.com Since 2014, we have made solid progress across all our strategic priorities and are accelerating to transform the business Shareholder Focus – how we’ve changed Supported by a Strategic priorities Value our strategy since 2014 number of enablers Proposition 2013 Investing in 1. Improve product capacity to sustain Niche availability growth Driving effective 2. Increase and efficient route affordability Indonesian population to market execution Targeting double digit EBIT growth 3. Build brand Driving cost 2014 onwards strength competitiveness Mass market 4. Build channel A more agile and relevance responsive system Indonesian population Coca-Cola Amatil Investor Presentation 12
ALCOHOL & COFFEE ccamatil.com Since 2014, we have developed a larger and stronger portfolio with our brand partners across alcohol and coffee categories Paradise Beer, Cider & Spirits & RTDs Coffee Beverages Fiji Bitters Shareholder Value Targeting double digit EBIT growth Proposition Coca-Cola Amatil Investor Presentation 13
SPC ccamatil.com Since 2014, we have made significant progress on our investment plans, and remain committed to securing SPC’s long term future Update Innovative products • Good progress modernising manufacturing capabilities and improving operational performance • Good progress bringing new innovative products to market, such as ‘ ProVital ’, ‘Perfect Fruit’ and several snacking -fruit products • Further opportunities to expand the range of products and expand into new markets Continue transformation into a profitable modern food business Coca-Cola Amatil Investor Presentation 14
FINANCIAL TARGETS ccamatil.com ccamatil.com GROUP CAPITAL DIVIDEND BALANCE EARNINGS EXPENDITURE OUTLOOK SHEET Group underlying NPAT 2017 Group capex Continue to target Balance Sheet to remain will decline 1H17; FY17 expected to be around medium term dividend conservative with expected to be broadly in $375M payout ratio of over 80% flexibility to fund future line with last year 2018 Group capex It is anticipated that from growth opportunities Medium-term target is to expected to be at a 2017, franking will be Expecting to maintain deliver mid single-digit similar level to 2017 lower than current levels strong return on capital EPS growth This reflects initiatives to employed This will depend on the rebalance Australian success of revenue Beverages’ portfolio and initiatives in Australia, remodel its supply chain Indonesian economic and continued factors and regulatory investment in Indonesia conditions in each of our markets Coca-Cola Amatil Investor Presentation 15
ccamatil.com QUESTIONS
ccamatil.com APPENDIX
Recommend
More recommend
