Forward-looking statements
Unless otherwise indicated, the condensed consolidated financial statements and the financial and operating data or other
information included herein relate to Coca-Cola HBC AG and its subsidiaries (“Coca-Cola HBC” or the “Company” or “we”
or the “Group”).
This document contains forward-looking statements that involve risks and uncertainties. These statements may
generally, but not always, be identified by the use of words such as “believe”, “outlook”, “guidance”, “intend”, “expect”,
“anticipate”, “plan”, “target” and similar expressions to identify forward-looking statements. All statements other than
statements of historical facts, including, among others, statements regarding our future financial position and results, our
outlook for 2014 and future years, business strategy and the effects of the global economic slowdown, the impact of the
sovereign debt crisis, currency volatility, our recent acquisitions, and restructuring initiatives on our business and financial
condition, our future dealings with The Coca-Cola Company, budgets, projected levels of consumption and production,
projected raw material and other costs, estimates of capital expenditure, free cash flow, effective tax rates and plans and
objectives of management for future operations, are forward-looking statements. You should not place undue reliance on
such forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they
reflect our current expectations and assumptions as to future events and circumstances that may not prove accurate. Our
actual results and events could differ materially from those anticipated in the forward-looking statements for many
reasons, including the risks described in the UK Annual Financial Report and the annual report on Form 20-F filed with the
U.S. Securities and Exchange Commission (File No 1-35891) for Coca-Cola HBC AG and its subsidiaries for the year ended
31 December 2013.
Although we believe that, as of the date of this document, the expectations reflected in the forward-looking statements
are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet
these expectations. Moreover, neither we, nor our directors, employees, advisors nor any other person assumes
responsibility for the accuracy and completeness of the forward-looking statements. After the date of the condensed
consolidated financial statements included in this document, unless we are required by law or the rules of the UK Financial
Conduct Authority to update these forward-looking statements, we will not necessarily update any of these forwardlooking statements to conform them either to actual results or to changes in our expectations.
2
Overview
3
Coca-Cola HBC at a glance
€7 billion revenues
2.1 billion unit cases
sold
28 countries of
operation over
3 continents
11 consecutive quarters
of currency-neutral
revenue per case
growth (as at Q1 2014)
50 billion servings per
annum
with significant exposure
in emerging markets
585 million population
# 1 in Sparkling
Beverages
38,089 employees
growing on average
at c.1% per annum
in 23 out of 24 markets
68 plants in operation and
324 warehouses and
distribution centres
Source: FY2013 data unless otherwise stated; Nielsen market share data
4
A diverse and balanced portfolio
Emerging markets
Developing markets
Armenia, Belarus, Bosnia and
Herzegovina, Bulgaria, FYROM,
Moldova, Montenegro, Nigeria,
Romania, Russia, Serbia, Ukraine
Czech Republic, Croatia,
Estonia, Hungary, Latvia,
Lithuania, Poland, Slovakia,
Slovenia
Population: 417 million
GDP/capita: US$ 7,186
Population: 77 million
GDP/capita: US$ 14,854
Established markets
Austria, Cyprus, Greece, Italy,
Northern Ireland, Republic of Ireland,
Switzerland
Population: 91 million
GDP/capita: US$ 36,929
2013 breakdown
Volume unit cases
Net sales revenue
Comparable EBIT
Total
32%
18%
37%
33%
16%
9%
50%
47%
58%
2,061m
€6,874m
€454m
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Financial highlights
Net sales revenue
Volume
Reported NSR per unit case
by segment
6,544 6,762 6,824 7,045 6,874
in million unit cases
in Euros
2,069 2,105 2,087 2,085 2,061
3.38
2,928 2,862 2,835 2,702 2,540
3.16
1,149
1,140 1,162
2,467 2,760
2,828
3,195 3,229
Gross profit margin
2009
2010
2011
2012
2013
OPEX as a % of revenue
30.4% 30.3%
40.3% 40.4%
2009
2011
2012
2013
10.1%
7.7%
30.0%
6.4%
6.6%
453
454
2012
2013
29.4%
28.9%
35.9% 35.5%
651
2011
2010
Comparable EBIT and EBIT
margin
9.9%
37.7%
2010
3.34
1,148 1,106
2009
2010
2011
2012
2013
Emerging Developing Established
2009
3.23
3.27
2012
2013
2009
2010
2011
2012
2013
2009
687
523
2010
2011
All numbers in million Euros unless otherwise stated
6
The opportunity we see
Business growth
Per capita development
Market share growth
Emerging markets exposure
Diverse product portfolio
Margin leverage
Revenue growth management
Operational leverage
Operational cost control
Infrastructure rationalisation
and logistics optimisation
SAP W2 exploitation and
Shared Services
Revenue-generating capital
expenditure
7
Footprint with attractive long-term
potential
660
584
2013 Total sparkling category servings per capita
461
219
220
Poland
Serbia &
Montenegro
301
Austria
209
Romania
166
Greece
Russia
166
Italy
123
142
204
298
321
353
Mexico
United States
Germany
Belgium
Great Britain
Spain
Europe average
(38 countries)
47
Ukraine
105
Nigeria
Emerging
93
134
Coca-Cola HBC
Established 201
Egypt
Developing 208
France
280
Switzerland
416
Per capita consumption: Average number of 237ml or 8oz servings consumed per person per year in a specific market.
Coca-Cola Hellenic’s per capita consumption is calculated by multiplying our unit case volume by 24 and dividing by the population.
Source: The Coca-Cola Company, 2013 data
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Driving revenue ahead of volume
Package mix
Single-serve
39%
Multi-serve
61%
Category mix
Energy
drinks, 1%
RTD Tea,
5%
Juice, 6%
Low
calorie
sparkling
beverages,
6%
Water,
18%
Channel mix
Immediate consumption
31%
Future consumption
69%
Pricing opportunities
Other still,
1%
Sparkling
beverages,
63%
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Strategy
10
Winning in the marketplace
43
% +0.8
Coca-Cola HBC
share in sparkling
18
% +0.8
Coca-Cola HBC
share in NARTD
18
% +0.8
Biggest competitor
share in sparkling
8
% +0.7
Biggest competitor
share in NARTD
12
% -2.3
Private label
share in sparkling
17
% -2.1
Private label
share in NARTD
Source: Nielsen 2013 market share data; company analysis
NARTD: Non-alcoholic ready-to-drink
11
Deploying initiatives to win in the
marketplace
Italy FC RED Score
Right
Execution
Daily
RED
75
53
25
2011
2012
2013
12
Growing revenue ahead of volume
• Delivered currency-neutral net sales
revenue per case growth for
11 consecutive quarters
• Implemented OBPPC architecture to
ensure relevance to the consumer
• Recovering economies expected to
present pricing opportunities
Occasion
Brands
Packages
Prices
Channel
13
Increasing consumption of SSDs in Italy
with OBPPC
Implementation
The right pack, in the right zone
INCIDENCE ZONE
1.
2.
3.
4.
Dairy (NEW)
Water section
Check-out and cooler
Bakery
1L
0.50L
1.75L
6x0.33L
FREQUENCY ZONE
1.
2.
3.
4.
Cheese and cold cuts counter
Ready meals
Fruit and vegetables
Pasta
UPSIZE ZONE
1.
2.
Promotional main hall
Promotional area
2x1.5L 4x1.5L
UPSCALE ZONE
1.
2.
3.
4.
Cookies and snacks
Juices for Minican
Check-out
Spirits (NEW)
12x0.15L 4x0.5L
14
Committing to cost leadership
Infrastructure optimisation
Number of plants
-32%
since 2008 in the Established
and Developing segments
Operational control
OpEx reduction
-190 bps
as % of NSR, since 2008
Number of distribution centres
-9%
since 2008
Number of warehouses
-16%
since 2008
15
Optimising the supply chain network
Italy
From 5
core plants
in 2012 to
3 core
plants in
2014
Opportunity
Execution
Result
Network complexity
3 plants near the biggest demand
areas
Implementation in 14 months
Leveraging the size of our plants
Asset utilisation
Reduction in fixed cost
High speed line
No plant under 40m unit cases
+10 % on asset utilisation
90bps reduction in supply
chain cost1 as a % of net sales
revenue
New high speed line in Nogara
1 Supply chain cost includes Production, Overheads, Warehousing, Distribution and Haulage
16
Generating free cash flow
Working capital
Bolt-on acquisitions
Negative year-end
position
of local brands
mainly in still drinks
Capital expenditure
Strong balance sheet
5.5-6.5% of NSR
Net Debt to Comp.
EBITDA at 1.9x
Returning
cash to
shareholders
Source: FY2013 data unless otherwise stated
17
Significant cash generation in Italy
To CCHBC Group
0.19 € (60%)
Cash flow from
operations1
290m€
= 0.32 €
per unit case sold
Investments for growth
0.13 € (40%)
1 Cash flow from operations in the last three years
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The Best is Yet to Come!
• We have medium to long-term opportunities
• volume and revenue growth
• improvement in the cost structure
• We are executing well in every area where we have control
• Our current platform is more efficient than in peak margin
years and should ensure that volume growth in the future
adds momentum to margin expansion
• The initiatives we have in place, combined with the
potential for volume momentum, give us confidence that
the best is yet to come!
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