INVESTOR PRESENTATION September 2018 PUBLIC
Forward-Looking Statements This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek’s (“CCI”) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward- looking statements can generally be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “target,” “believe” or other words of similar meaning. These forward-looking statements reflect the current views and assumptions of management and are inherently subject to significant business, economic and other risks and uncertainties. Although management believes the expectations reflected in the forward-looking statements are reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that could cause actual results to differ materially from CCI’s expectations include, without limitation: changes in CCI’s relationship with The Coca-Cola Company and its exercise of its rights under our bottler's agreements; CCI’s ability to maintain and improve its competitive position in its markets; CCI’s ability to obtain raw materials and packaging materials at reasonable prices; changes in CCI’s relationship with its significant shareholders; the level of demand for its products in its markets; fluctuations in the value of the Turkish Lira or the level of inflation in Turkey; other changes in the political or economic environment in Turkey or CCI’s other markets; adverse weather conditions during the summer months; changes in the level of tourism in Turkey; CCI’s ability to successfully implement its strategy; and other factors. Should any of these risks and uncertainties materialize, or should any of management’s underlying assumptions prove to be incorrect, CCI’s actual results from operations or financial conditions could differ materially from those described herein as anticipated, believed, estimated or expected. Forward-looking statements speak only as of this date and CCI has no obligation to update those statements to reflect changes that may occur after that date. 2 PUBLIC
Agenda Overview of CCI 4 12 Opportunities Strategy 18 Region Highlights 26 Financial Highlights 30 PUBLIC
Overview of Highlights CCI ✓ Proven track record of expansion & growth ✓ Robust performance across all key markets with solid topline growth ✓ Abundant potential in demographics ✓ Compelling NARTD* growth opportunity in our footprint ✓ Strategy, Execution and People to accelerate quality growth ✓ Disciplined financial management to deliver stakeholder value 4 *Non-alcohol ready-to-drink PUBLIC
Overview of We are the 6th Largest Bottler in the Coca-Cola CCI System, Operating in 10 Countries Overview • ~400 mn people 26 (1) production plants with 124 (1) lines • • 1.5 bn UC (2) annual production capacity KAZAKHSTAN • ~800 thousand sales points • 1.2 bn UC sales volume AZERBAIJAN • $ 2.3 bn revenue & $ 379 mn EBITDA KYRGYZSTAN TURKEY TURKMENISTAN TAJIKISTAN Volume Breakdown 7% SYRIA Market position (3) 9% Turkey #1 IRAQ 9% Pakistan #2 50% PAKISTAN Kazakhstan JORDAN #1 Iraq #2 25% Others Figures reflect FY 2017 numbers (1) As of 2018 (2) Unit case, 1 UC equals 5,678 liters (3) Sparkling market share 5 PUBLIC
Overview of We have a Successful Track Record of Growth CCI REVENUE VOLUME EBITDA 18% 12% 18% 7x 7x 4x CAGR 2005-2017 CAGR 2005-2017 CAGR 2005-2017 Single country in Expanding into Central Asia and JV in Pakistan in South Iraq in A regional bottler 2005 … North Iraq in 2006-2007 … 2012… today … 2008... 318 mn UC 1,237 mn UC 6 PUBLIC
Overview of Strong Performance in 2017… CCI Fastest growing bottler in 729 the Coca-Cola System* million TL Record high FCF 26,2% 34,0% 33,9% MARGINS 20,9% GROWTH YOY 16,2% 15,5% 10,3% 9,1% 4,9% 4,1% 3,9% 3,2% VOLUME NET REVENUE EBITDA EBIT EBITDA GROSS PROFIT FY16 FY17 FY16 FY17 7 PUBLIC *Across top the Coca-Cola System Bottlers
Overview of Robust Performance in 2Q18 and 1H18 CCI ‘ Quality growth ’ continued for the fourth consecutive quarter GROWTH YOY MARGIN 36,6% 2Q18 29,3% 23,4% 35,9% 9,5% 20,3% 1H18 19,4% 33,9% 16,2% 14,5% 22,1% 10,6% VOLUME NET REVENUE EBITDA EBIT EBITDA GROSS PROFIT 2Q17 2Q18 8 PUBLIC
Overview of Growth Across All Regions CCI … with 35 mn UC incremental volume in 2Q18 Volume (mn UC) 64 mn UC incremental volume in 1H18 196 Volume Contribution YoY 181 Million UC International Operations 7.8% 10.3% 176 21 million UC 1H18 2Q18 2Q16 2Q17 2Q18 Growth YoY Growth YoY TURKEY 14 212 408 191 373 184 11.0% 10.9% 2Q18 1H18 2Q16 2Q17 2Q18 Growth YoY 2Q17 Turkey ME & Central Asia 2Q18 Growth YoY Pakistan INTERNATIONAL 9 PUBLIC
Overview of Contribution to Growth: Regions CCI 50 37 13 % % % MIDDLE EAST CENTRAL & PAKISTAN ASIA TURKEY VOLUME GROWTH, YOY +3.3 % +4.0 % +7.0 % FY17 +7.8 % +11.7 % +9.0 % 2Q18 +10.3 % +10.2 % +12.9 % 1H18 10 Volume contribution of regions, 2017 PUBLIC
Overview of Contribution to Growth: Categories CCI 71% 6% 9% 14% SPARKLING STILLS NRTD TEA WATER VOLUME GROWTH, YOY +3.3 % +8.5 % +20.9 % -3.2 % FY17 +12.0 % +20.7 % -17.7 % +11.4 % 2Q18 +11.8 % +20.9 % -1.1 % +9.1 % 1H18 Volume contribution of categories, 2017 11 PUBLIC
Opportunities Our Geography has Abundant Opportunities 273 52 % NARTD servings urban % 2017 Low Increasing per caps urbanization ~60 % 20 MN below age 30 Faster Young population growth population 12 Source: UN | 2017-2020 PUBLIC
Lower per caps in CCI Countries Opportunities NARTD per cap* 1.415 1.335 1.172 1.082 1.027 881 762 686 686 681 624 621 546 510 476 468 452 436 416 404 CCI weighted average: 273 326 320 212 204 195 194 139 76 50 CCI’s share * NARTD includes sparkling soft drinks, ready-to-drink tea, energy drinks, juices, packaged water * NARTD per cap per year in terms of number of 8 ounce servings, data as of 2017 13 PUBLIC
Opportunities NARTD Value Growth Opportunity TOTAL NARTD INDUSTRY IN CCI COUNTRIES: $12BN (2017) INDUSTRY NARTD 28% VALUE GROWTH SPARKLING 51% +$3bn STILLS 9% 8% CAGR 2017- 2020E WATER 8% CCI Value Share Opportunity 14 Source: Nielsen, Canadean and internal estimates, data as of 2017 PUBLIC
More Room to Grow … Opportunities 1 mn COOLERS 73% 73% COVERAGE 44 44 % 61 61 % ~50% ~50 Monthly** OCCASIONAL USERS Outlet GENERATING Penetration* 18 18% % OF VOLUME** 800K HOUSEHOLD PENETRATION OUTLETS *Number of outlets where we are available divided by total outlets in our 10 countries 15 ** Source: Ipsos as of 2018 YTD, B3/BGS as of 2017 data for Turkey PUBLIC
More Room to Grow … Opportunities Share of Immediate Consumption (IC) Packages in Sparkling You oung Pop opula lation in CCI in I countries ~60% ~60% 58% ~2x higher 50% NSR per case ~1.5x 40% higher Teen Recruitment Opportunit ity! Gross Margin vs. 35% FC 28% 25% Asia North World Europe, Latin CCI Pacific America Average Middle America East and Africa 16 * Based on CCI analysis for Turkey operations PUBLIC
Opportunities More Room to Diversify Product Portfolio SHARE OF LOW/NO CALORIE IN SPARKLING CATEGORY BREAKDOWN VOLUME (2017) 2017 26% Still 23% 6% NRTD Tea 9% Other 15% 2006 Water 14% 8% 6% 3% 2% 1% 1% 1% 1% 1% 0,2% Sparkling 85% North America Europe Latin America Turkey Azerbaijan Jordan Iraq Tajikistan Kyrgyzstan Turkmenistan Kazakhstan Pakistan Sparkling 71% 2006 2017 Brands 17 33 Increasing Household & Double-digit growth in Penetration No Sugar Flavors 44 154 17 PUBLIC
Strategy Clear Strategic Framework Customer & Consumer Being the preferred partner of our Vision Values customers, offering our consumers a wide choice of products fit for every lifestyle and occasion Be the Best FMCG Company Across CREATE our Markets VALUE People Community Being a good Great place corporate citizen to work 18 PUBLIC
Strategy Strategic Priorities to Create Value Accelerate Win at the Exercise Financial Win with People Growth Point of Sale Discipline • Full-beverage portfolio • Increase outlet coverage • Productivity savings • Integrated Talent Strategy • Revenue Growth • Working capital • Increase cooler penetration • Leadership Development Management (RGM) improvements • Right Execution Daily • High Performing Team • Expand Sparkling & Stills • Healthy FCF • E-commerce • Increase frequency • Optimum leverage • Transformation to “ OnePeople ” • Future-proof RTM • Regional strategies • Effective FX management ONE C E CCI CI 19 PUBLIC
ONE CCI to Drive Business Excellence to Achieve Strategy Vision 2025 Towards Vision 2025 Business Excellence - Operating Model Governance - Prescriptive Analytics & Insights - Business Services Delivery - Centers of Expertise (CoEs) Fix Foundation for Real Value Creation Build New (CCI 3.0) Operating Model 20 PUBLIC
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