Damian Gammell , CEO Nik Jhangiani, CFO 1 1
Forw orwar ard d Looking Sta Looking Statements tements This document contains statements, estimates or projections that constitute “forward -looking statements” concerning the financial condition, performance, results, strategy and objectives of Coca-Cola European Partners plc and its subsidiaries (together “CCEP” or the “Group”) . Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “plan,” “seek,” “may,” “could,” “would,” “should,” “might,” “will,” “forecast,” “outlook,” “guidance,” “possible,” “potential,” “predict,” “objective” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks that could cause actual results to differ materially from CCEP’s historical experience and present expectations or projections. As a result, undue reliance should not be placed on forward-looking statements, which speak only as of the date on which they are made. These risks include but are not limited to those set forth in the “Risk Factors” section of the 2017 Annual Report on Form 20-F, including the statements under the following headings: Risks Relating to Consumer Preferences and the Health Impact of Soft Drinks (such as sugar alternatives); Risks Relating to Legal and Regulatory Intervention (such as the development of regulations regarding packaging and taxes); Risks Relating to Business Integration and Synergy Savings; Risks Relating to Cyber and Social Engineering Attacks; Risks Relating to the Market (such as customer consolidation and route to market); Risks Relating to Economic and Political Conditions (such as continuing developments in relation to the UK’s exit from the EU, political instability in Catalonia, ‘Gilets Jaunes’ protest movement and demonstrations in France); Risks Relating to the Relationship with TCCC and Other Franchisors; Risks Relating to Product Quality; and Other Risks (such as competitiveness and transformation). Due to these risks, CCEP’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set out in CCEP’s forward-looking statements. Additional risks that may impact CCEP’s future financial condition and performance are identified in filings with the SEC which are available on the SEC’s website at www.sec.gov. CCEP does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable rules, laws and regulations. CCEP assumes no responsibility for the accuracy and completeness of any forward-looking statements. Any or all of the forward-looking statements contained in this filing and in any other of CCEP’s respective public statements may prove to be incorrect. Reconciliation and Definition of Alternative Performance Measures The following presentation includes certain alternative performance measures, or non-GAAP performance measures. Refer to our Preliminary Unaudited results for the Fourth-Quarter and Full- Year Ended 31 December 2018, issued on 14 February 2019, (“Preliminary Unaudited Results”) which details our non -GAAP performance measures and reconciles, where applicable, our 2018 and 2017 results as reported under IFRS to the non-GAAP performance measures included in this presentation. This presentation also includes certain forward looking non-GAAP financial information. We are not able to reconcile forward looking non-GAAP performance measures to reported GAAP measures without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact or exact timing of items that may impact comparability. 2
MERGER IN 2016 Cr Creating ting Sca Scale an le and the the ICELAND* World’s La Large gest st Bott Bottler ler by R by Reven enue ue 2018 Revenue of € 11.5BN, Adjusted EBITDA of € 2.1BN & Operating Profit of € 1.6BN (13.7% Operating Margin) Geographic Expansion with Operations in 13 Countries 24k Employees serving 1M Customer Outlets where, collectively, over 300M Consumers can enjoy our drinks One of the Largest FMCG Sales Forces in Europe with ~6K Strong Commercial Team & 1M Coolers Revenue and operating profit are comparable (non-GAAP performance measure, refer to slide 2); adjusted EBITDA (a non-GAAP performance measure, refer to slide 2). FMCG = Fast Moving Consumer Goods. NARTD = Non- 3 Alcoholic Ready-To-Drink. to *Iceland was acquired in July 2016.
Key A ey Achie hievement ements s Since Since Mer Merger ger Launched Bold Sustainability Action Plan Accelerated Total Beverages Strategy Aligned with TCCC Reset Base for Profitable Growth Delivered Integration and Merger Synergies 4
Wha hat t Ex Excites cites Us Us About the About the Futur Future We Operate in a Large & Growing Market We have Scale with a Market Leading Position We have a Strong Portfolio of Products & Packs We are Jointly Creating Value with our Customers We have Great, Talented & Engaged People 5
Safety Saf y inc incide ident r rates halved since merger 2025 target 40% women in leadership positions: now at 35%, up 3PPS 6
Why W hy We e Belie Believe World’s Best Brands Solid Track Record GIVING GIVING US US Unrivalled Customer Coverage CONFIDENCE CONFIDENCE Market Set to Grow by 2-3% CAGR 1 Solid, Flexible IN OUR MID-TERM Balance Sheet Investing in ANNUAL Key Capabilities Leading the Sustainability OBJECTIVES Conversation Transforming Our Segmentation & Diversification More Aligned than Ever Before with TCCC 2 8 1 CCEP internal estimates 2 The Coca-Cola Company
Why W hy We e Belie Believe World’s Best Brands Solid Track Record GIVING GIVING US US Unrivalled Customer Coverage CONFIDENCE CONFIDENCE Market Set to Grow by 2-3% CAGR 1 Solid, Flexible IN OUR MID-TERM Balance Sheet Investing in ANNUAL Key Capabilities Leading the Sustainability OBJECTIVES Conversation Transforming Our Segmentation & Diversification More Aligned than Ever Before with TCCC 2 9 1 CCEP internal estimates 2 The Coca-Cola Company
Growth thr through ough Acceler Accelerated ted Div Diver ersifica sification tion Channel Sustainability Segmentation Portfolio Routes to & Priority Market Packs 10 10
Size Siz e of the Prize… CCEP Markets + € 30 30 bn bn Revenue Volume to grow at a to grow at a by 2028 2% to 2% to 3% 3% 0.5% to 0.5% to 1.5% 1.5% CAGR CAGR CAGR CAGR (Cumulative NARTD (2017-2028) vs 1.1% (2017-2028) vs 0.6% incremental revenue (2010-2017) (2010-2017) opportunity) 11 11 CCEP internal estimates; Total NARTD Retail Sales Value (combination of Global Data FY2017 for AFH channels, Nielsen FY2017 data for Home channels)
2017 NARTD 2018-2021 NARTD 2018 BIG BIG CAGR FORECAST 3 VALUE MIX Chan Ch anne nel l 46% 46% Growth Gr wth +2% +2% Hyper/Supermarket 1 36% Home (CCEP Opp Oppor ortu tunity nity 57%) +6% +6% Discounter 1 10% CCEP AFH Volume Outpaced +4% +4% Home HoReCa 2 27% by 70bps 54% 54% in 2018 AFH +6% +6% (CCEP Leisure 2 8% 43%) +4% +4% QSR 2 7% 1 Nielsen FY 2017 2 Global Data FY 2017; HoReCa is Hotel/Restaurant/Café; QSR is Quick Serve Restaurants; Convenience includes Convenience +5% +5% Convenience 2 6% Stores & Food To Go; Global Data excludes Disco/Bar/Night Club, Kiosks/tobacco/newsagents & Travel/Transportation 3 CCEP internal estimates, rounded. Forecasts not available for Petrol 2 4% 12 12 12 Petrol or At work/Institutional AFH = Away From Home channel At work/Institutional 2 , 3%
Key ey Unloc Unlock k is is Thr hrou ough gh New New Se Segme gment ntation tion App pproa oach h – Ch Chan ange ges ar are e Un Unde derw rway ay FROM… TO… Key accounts 12 channel segments Requires very different organisation structures Channel 1 st Packaging 2 nd Away Customer Home from c Clusters Home More focused Unlocks consumption occasions 13 13 13
Our Our Div Diver ersifyi sifying ng Por ortf tfolio olio Premiumise, Expand & Rapidly Scale & Inventively Drive Innovate & Expand Premiumise Expand New Growth Accelerate Adult RT RTD Coffee/ Cof ee/ SSD SSD Water Water RT RTD D Tea ea Energy nergy Plant lant Ba Based ed 0.5-1% 0.5 1% 3-4% 4% 6-7% 7% 4-5% 5% 9-11% 11% 2017- 2017 2028 2028 GRO GROWT WTH TOTAL L NARTD TD REV EVENUE ENUE TO O GR GROW W 2-3% 3% CA CAGR GR 1 14 14 1 CCEP internal estimates,rounded
With ith a F a Foc ocus us on on Small Sma ll & Pr & Prem emium ium Prior Priority ity Pac acks ks Priority Prior ity Small & Small & Premium P Pr emium Pac acks ks 1 up 3% 3% 2 in 2018 • Mini cans +20% 2 • Glass +1% 2 • PET + 2% 2 26% V 26% Value alue Shar Share 3 across CCEP (Belgium at 47%) 1 Priority small packs = PET <1Litre, Glass <1Litre, Cans < 33cl 15 2 FY 2018 volume growth 3 Nielsen CCEP Countries 26.08.18.
Recommend
More recommend
