1 Investor Presentation September 2019 PUBLIC PUBLIC
Forward-Looking Statements 2 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 Forward-looking statements can generally be identified by the use of words such as “may,” “will,” facts. “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 PUBLIC
3 Agenda Overview of CCI 4 2019 YTD Highlights 11 Strategic Priorities 17 Financial Highlights 25 Appendix 35 PUBLIC PUBLIC
4 Agenda Overview of CCI PUBLIC PUBLIC
We have the capabilities for Overview of CCI further growth 5 Proven track record of expansion & growth in emerging markets Presence in large and growing markets, compelling NARTD* growth opportunity in our footprint Abundant potential in demographics Strategy, Execution and People to accelerate quality growth Disciplined financial management to deliver stakeholder value Strong System alignment and unique long-term relationship with TCCC 5 *Non-alcohol ready-to-drink PUBLIC PUBLIC
We are the 6th largest bottler in the Overview of CCI Coca-Cola System 6 KAZAKHSTAN • 10 countries, ~400 mn people • 26 production plants with 124 lines (2018) AZERBAIJAN • 1.5 bn UC (1) annual production capacity KYRGYZSTAN TURKEY TURKMENISTAN TAJIKISTAN • ~920 thousand sales points SYRIA • 1.3 bn UC sales volume IRAQ • PAKISTAN $ 2.3 bn revenue & $ 395 mn EBITDA JORDAN Revenue Breakdown (2) EBITDA Breakdown (2) Volume Breakdown (2) Sparkling Market Position 7% 8% #1 Turkey Turkey 36% 21% #2 Pakistan Turkey 44% 10% Pakistan #1 49% Kazakhstan Kazakhstan 12% International 64% #2 Iraq Others 26% Others 23% 6 Figures reflect FY 2018 numbers unless otherwise stated PUBLIC PUBLIC (1) Unit case, 1 UC equals 5,678 liters (2) As of FY2018
…with a s uccessful track record of Overview of CCI growth 7 VOLUME REVENUE EBITDA 12% 18% 19% 10x 9x 4x CAGR 2005-2018 CAGR 2005-2018 CAGR 2005-2018 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 1,315 mn UC 7 PUBLIC PUBLIC
Rising performance… Overview of CCI 8 Accelerating Quality Growth Solid Free Cash Flow Growth TL million 36% 27% 26% 21% 18% 17% 729 730 642 13% 6% 4% - CAGR (2005-16) 2017 2018* Cumulative 2016 2017 2018 Volume NSR EBITDA 2005-2015 2018: Highest net revenue & EBITDA growth 2018: Highest free cash flow of the past 6 years 8 *Includes TFRS 15 adjustments PUBLIC PUBLIC
…with the right focus 9 Right Price Right Mix Regional Strategies IC Portfolio Availability Effective discount and trade Optimum price/pack architecture promotion management NSR > PCE growth IC Share ↑ 5 pts in Turkey in last 5 years Right Channel Right Portfolio Channel prioritization Portfolio expansion Clear channel roles & objectives Portfolio innovation Segmented execution Portfolio diversification 9 PUBLIC PUBLIC
…and excellence in e xecution 10 Time in Field* Outlet Coverage (as of June’19) (as of April’19) 75% 91% +4pts vs 2015 +13pts vs 2015 Call Completion Rate** Strike Rate*** (as of June’19) (as of June’19) 91% 69% +6pts vs 2015 Superior +7pts vs 2015 ~118K new Over Execution: placements 1 million Be Available, in 4 years coolers Be Cold, (as of Apr’19) Be Visible *Time in Field: Percentage of time spent on the field vs. total working hours **Call Completion Rate: Percentage of realized visits vs. planned ***Strike Rate: Percentage of invoiced customers vs. planned 10 PUBLIC PUBLIC
11 Agenda 2019 Year-to-Date Highlights PUBLIC PUBLIC
Delivering quality growth in 2Q19 2019 YTD Highlights 12 1H19 YoY Growth 2Q19 YoY Growth 3.7% yoy 25,5% 24,7% 2.5% yoy 23,6% increase 20,6% increase exlc. exlc. NRTD tea NRTD tea 3,9% 3,0% 1,8% 0,4% Volume Transactions Net Sales EBITDA Volume Transactions Net Sales EBITDA (excl. NRTD Tea) (excl. NRTD Tea) 12 PUBLIC PUBLIC
Continued strong momentum 2019 YTD Highlights 13 SPARKLING STILLS TOTAL WATER NRTD TEA Unit Case Volume Growth (YoY) 1H18 11.8% 20.9% 9.1% -1.1% 10.6% 6.8% 11.6% 6.0% -1.2% 6.3% 2018 1.9% 4.1% 5.2% -19.9% 0.4% 1H19 4.1% -1.7% 4.4% -21.5% 1.8% (2Q19) % in Total 7% 8% 72% 14% Mix (1H19)* 13 * Totals may not foot due to rounding differences PUBLIC PUBLIC
Turkey: On track for quality growth 2Q 2019 Highlights algorithm 14 Highest ever sparkling cases in 1H19 2Q19 Growth yoy +5.7% yoy in 2Q19 in Sparkling category • +7.9% yoy in IC volume • +7.5% yoy in trademark Coca-Cola New accounts and new SKU listings Continued cooler placements 62,7% Proud to be the Best Cycling 8% #1 in 3 categories in Global Customer & in 2Q18 Commercial Leadership Awards 23,1% Best all 0,1% 5,0% around the RGM 4,2% Discounter World How Turkey A Paradigm Volume Volume Transactions Net Revenue EBITDA* system turned Emerging out of the Shift in (excl. NRTD (excl. NRTD crisis into clear air turbulence Customer Tea) Tea) opportunity stronger Management * Excluding other operating income/expense 14 PUBLIC PUBLIC
Central Asia: Robust performance for 2Q 2019 Highlights 11th consecutive quarter 15 Kazakhstan Central Asia ▪ UC Volume Growth yoy 11th consecutive quarter of UC Volume Growth yoy volume growth ▪ Growth in all categories excl 19% 17% Turkmenistan ▪ Strong consumer activations 13% 19.6% and cooler placements 2Q18 1Q19 2Q19 Azerbaijan UC Volume Growth yoy ▪ 10th consecutive quarter of 17,3% double-digit growth 10,5% ▪ All categories grew over 30% in 37% 9,0% 32% 26% 2Q19 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 15 PUBLIC PUBLIC
Pakistan and Middle East: Improving 2Q 2019 Highlights performance in a challenging environment 16 Pakistan & Middle East Pakistan UC Volume Growth yoy ▪ Challenging macro conditions pressuring top-line growth ▪ Increasing availability of top SKUs and outlet coverage ▪ Continued focus on improving route-to-market 12,0% 10,6% Middle East 1Q19 2Q19 1Q19 2Q19 2Q18 2Q18 -0,7% ▪ 3.1% volume growth in Iraq in 2Q19 driven by trademark -1,8% -7,7% -8,2% Coca-Cola ▪ Increasing cooler placements and outlet coverage ▪ Continued focus on improving route-to-market in Jordan Pakistan Middle East 16 PUBLIC PUBLIC
17 Agenda Strategic Priorities PUBLIC PUBLIC
Clear strategic framework Strategic Priorities 18 Customer & Consumer Being the preferred partner of our customers, offering our consumers a wide Vision Values 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 PUBLIC
Strategic priorities to create value Strategic Priorities 19 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 CCI 19 PUBLIC PUBLIC
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