Coca-Cola HBC DB Consumer Conference June 2019 Zoran Bogdanovic CEO
Forward looking statements Unless otherwise indicated, the condensed consolidated By their nature, forward-looking statements involve risk and interim financial statements and the financial and operating uncertainty because they reflect our current expectations and data or other information included herein relate to Coca-Cola assumptions as to future events and circumstances that may HBC AG and its subsidiaries (“Coca - Cola HBC” or the not prove accurate. Our actual results and events could differ “Company” or “we” or the “Group”). materially from those anticipated in the forward-looking statements for many reasons, including the risks described in This document contains forward-looking statements that the 2018 Integrated Annual Report for Coca-Cola HBC AG and involve risks and uncertainties. These statements may its subsidiaries. generally, but not always, be identified by the use of words such as “believe”, “outlook”, “guidance”, “intend”, “expect”, Although we believe that, as of the date of this document, the “anticipate”, “plan”, “target” and similar expressions to identify expectations reflected in the forward-looking statements are forward-looking statements. All statements other than reasonable, we cannot assure you that our future results, level statements of historical facts, including, among others, of activity, performance or achievements will meet these statements regarding our future financial position and results, expectations. Moreover, neither we, nor our directors, our outlook for 2019 and future years, business strategy and employees, advisors nor any other person assumes the effects of the global economic slowdown, the impact of responsibility for the accuracy and completeness of the the sovereign debt crisis, currency volatility, our recent forward-looking statements. After the date of the condensed acquisitions, and restructuring initiatives on our business and consolidated interim financial statements included in this financial condition, our future dealings with The Coca-Cola document, unless we are required by law or the rules of the Company, budgets, projected levels of consumption and UK Financial Conduct Authority to update these forward- production, projected raw material and other costs, estimates looking statements, we will not necessarily update any of of capital expenditure, free cash flow, effective tax rates and these forward-looking statements to conform them either to plans and objectives of management for future operations, are actual results or to changes in our expectations. forward-looking statements.
Our Company Established markets 28% Austria, Cyprus, Greece, Italy, Northern Ireland, 2,192m Republic of Ireland, unit cases Switzerland Volume 52% 2018 20% Developing markets Czech Republic, 37% Croatia, Estonia, 43% Hungary, Latvia, Revenue €6,657m Lithuania, Poland, Slovakia, Slovenia 2018 Emerging 20% markets Armenia, Belarus, 35% Bosnia and Herzegovina, Comparable 45% €681m Bulgaria, Moldova, EBIT Montenegro, Nigeria, 2018 North Macedonia, Romania, Russia, Serbia, Ukraine 20%
A unique business with Passionate, a strong dedicated and Broad, engaged differentiated growth people product offering – Industry 29% of revenues leader in profile Strategic from non- sustainability partner of The Sparkling with deep Coca-Cola roots in our Company communities Committed to, and delivering, strong Diverse financial growth geographic 68 years and shareholder footprint – of history returns – 23% TSR 28 countries CAGR since 2015 across 3 continents
In 2016 we set ambitious targets for Drive volume Focus on Improve Invest in the 2020 Targets growth value efficiency business Capital 4-5% p.a. 26-27% expenditure Average currency-neutral by 2020 5.5%-6.5% revenue growth comparable Scorecard of revenue* OpEx as % of revenue Working capital 11% less than by 2020 € -100m comparable EBIT margin ⃰ Excluding impact of IFRS 16 adoption 5
We are delivering on our 2020 targets Currency-neutral Comparable EBIT margin Operating expenses as a Revenue growth % of Revenue 2020 Target 11% 4-5% on average 2020 Target 26-27% 5.9% 3.0% 6.0% 27.9% 28.2% 8.3% 9.5% 10.2% 27.7% 2016 2017 2018 2016 2017 2018 2016 2017 2018 CAPEX as a % of revenue Working capital (€ mn) 5.5-6.5% Consistently triple-digit negative 5.8% 5.3% 6.4% 2016 2017 2018 6
Leader in the dynamic, growing Non-alcoholic No. 1 ready-to-drink (NARTD) industry in SSDs in 22 of 23 measured 2018 value share 2018 CCH 2016-2020 2021-2025 markets of category in category value industry CAGR industry total industry share CAGR 23 2 5 Sparkling 33% 56% 3.7% 3.9% 20 2 4 Hydration* 30% 10% 3.8% 3.6% 10 01 Juice 15% 15% 1.5% 2.5% 4 1 2 Energy 6% 15% 8.9% 7.8% 2 0 1 4% 23% 3.5% 4.4% RTD tea 9 1 3 13% 0.2% 4.4% 5.7% Other 69 6 17 100% 26% 3.8% 4.1% NARTD 2018 (€bn) 2019-2020 projected 2021-2025 projected increase (€bn) increase (€bn) *Hydration includes Water and Sports drinks Source: 2018 GlobalData and value extrapolated based on Nielsen and internal estimates. 2018-25 Forecast based on internal estimates. 7
Future opportunity in Coffee 2018 value share 2018 CCH 2016-2020 2021-2025 of category in category value industry CAGR industry total industry share CAGR Sparkling Hydration* Juice Energy RTD tea Other NARTD 13 56 4 2.7% 4.0% Coffee 2018 (€bn) 2019-2020 projected 2021-2025 projected increase (€bn) increase (€bn) *Hydration includes Water and Sports drinks Source: 2018 GlobalData and value extrapolated based on Nielsen and internal estimates. 2018-25 Forecast based on internal estimates. 8
Favourable demographics - 54% of growing population with very low Nigeria’s population is per-capita consumption less than 19 years old Population (m) 2018 industry SSDs servings per-capita +4.4% +4 +3 +3.0% 644 644 616 616 598 598 CCH 103 103 124 124 132 147 180 182 183 222 223 237 262 274 275 288 298 307 330 367 435 523 623 55 2015 2019 2025 Europe avg. Nigeria Emerging Ukraine Russia Egypt CCH Italy France Established Greece Poland Developing Switzerland Austria Europe avg. (31) Serbia & Mont. Bulgaria Romania Spain Great Britain Belgium Germany United States Mexico Nigeria Nigeria CCH excl. Nig CCH excl. Nigeria Sources: IHS, internal estimates Serving is 8oz or 237ml 9
Diverse, balanced country portfolio mitigates country-specific risks Nigerian Naira 11.0 Diverse geographical depreciates 80% source of EBIT Russian Rouble 9.0 depreciates 60% 3 countries 7.0 with >10% of EBIT contribution 7 countries each with 5-10% of 5.0 EBIT contribution each 3.0 18 countries 1.0 with <5% of EBIT contribution 2012 2013 2014 2015 2016 2017 2018 each -1.0 Currency-neutral revenue EBIT margin (%) growth (%) 10
The strongest, broadest, most flexible portfolio 8 categories, over 100 brands, c. 4,000 SKUs % in CCH Categories Brands revenue 71% Sparkling 9% Hydration (Water & Sports) 8% Juices Ready-to-drink tea 4% 3% Energy <1% Plant-based beverages 3% Premium spirits Coffee 1% 11
Meals at home Growth Eating ou out Retail value : €2 6bn Rou outine Avg € /ltr: 1.3 opportunity hab abits CCH value share: 5.4% at home in commercial My Moments at home At sch chool beverages within Retail value: €14 bn Avg €/ ltr: 1.3 CCH value share: 4.8% the largest At wor ork and most Han angi ging out AFH AFH valuable occasions Snac Snacktime Scr Screen tim ime Physi sical Drinking out act ctivity AFH AFH Retail value: €30bn Avg €/ ltr: 6.2 CCH value share: 3.3% On n the he go Social Soc alising ing Breakfast at home Occasion figures refer to total commercial beverages: including NARTD alcohol and hot beverages 12
Our growth will be driven by a crystal clear vision 13
Each of our growth pillars is a core strength or competitive advantage Fuel growth Leverage Win in the through Cultivate the Earn our our unique marketplace competi- potential of licence to 24/7 with our tiveness and our people operate portfolio customers investment Growth Capabilities 14 14
Sparkling Water Leveraging RTD Tea our unique 24/7 portfolio with Adult Sparkling Juices clear category strategies Plant-based Energy Coffee Premium Spirits
Our 24/7 portfolio allows us to stay relevant for every outlet in every channel
Winning in the marketplace with customers Next generation JOINT customer VALUE approach CREATION driven by insights We win with customers when they win with shoppers
Our capabilities are catalysts for growth and drivers of competitive advantage Growth-focused To monetise our data through BDAA targeted value creation opportunities Big Data Advanced Analytics Value-led To maximise value from RGM every transaction Revenue Growth Management Trends For targeted execution excellence via outlet Tech-enabled and salesforce segmentation, cooler coverage RTM & connectivity and technology Route to Market Why? Customer-centric To identify and capture sources KAM of mutual value creation Key Account Management Disciplined As fuel for profitable topline growth INNOVATION 18
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