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Dimitris Lois – CEO Michalis Imellos - CFO Full - year results for the year ended 31 December 2012

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Page 1: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

Dimitris Lois – CEO

Michalis Imellos - CFO

Full-year results for the

year ended 31 December 2012

Page 2: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

Disclaimer

The information contained herein includes forward-looking statements which are based on

current expectations and assumptions about future events. You should not place undue reliance

on these forward looking statements. These forward-looking statements are subject to risks,

uncertainties and assumptions about Coca-Cola Hellenic including, among other things,

macroeconomic conditions and their effect on consumer confidence and disposable income, the

effect of acquisitions to our business and financial condition, our relationship with The Coca-Cola

Company, currency fluctuations, pricing of raw materials, the impact of future taxation and

estimates of capital expenditure. These and other risks are described in Coca-Cola Hellenic’s

Annual Report on Form 20-F filed with the US Securities and Exchange Commission. As a result,

our actual results could differ materially from those anticipated in the forward looking statements.

No one undertakes to publicly update or revise any forward-looking statement unless required by

law. Unless otherwise specified, all financial information presented herein is based on Coca-Cola

Hellenic’s IFRS financial statements.

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Delivering on our strategic priorities

Continue winning in the marketplace

Volume growth for second consecutive

quarter

Currency neutral revenue growth ahead of

volume for sixth consecutive quarter

Solid free cash flow generation

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Financial Review

Michalis Imellos

Chief Financial Officer

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Financial performance overview

(*) Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results and non-

recurring items.

Q4’12 FY’12

YoY YoY

Volume (m u.c) 476.9 +2% 2,084.7 flat

Net Sales Revenue (Eur m) 1,604.8 +5% 7,044.7 +3%

Comp. EBIT (Eur m) 55.6 -22% 453.1 -13%

Comp. EBIT margin (Eur m) 3.5% -1.2pp 6.4% -

1.3pp

Comparable EPS (Eur) 0.06 -25% 0.78 -13%

Free Cash Flow (Eur m) (21.0) n/a 341.3 -20%

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Q4’12 FY’12

Total Coca-Cola Hellenic

Volume +2% flat

Currency neutral Revenue per case +1% +2%

Established Markets

Volume -5% -5%

Currency neutral Revenue per case 0% -1%

Developing Markets

Volume +1% -2%

Currency neutral Revenue per case 0% +2%

Emerging Markets

Volume +8% +4%

Currency neutral Revenue per case +3% +6%

Solid top line growth

6(*) excluding currency translation impact and hyperinflation adjustment in Belarus

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Input Costs continue to havean adverse impact on results

Q4 2012

• EU sugar prices remained the key driver of higher input costs

• Aluminium fully hedged early in the year resulting in y-o-y growth in Q4

• PET resin costs declined in the quarter

FY 2012

• Currency neutral input costs per case grew by mid single-digits

• Commodity hedging strategy reduced volatility on World sugar costs

• Our revenue growth initiatives fully offset the increase of input costs in absolute terms

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Administration costs were the key drivers operating expenses growth in the quarter

(*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and non-recurring items. Discrepancies in growth

rates are due to rounding.

Currency neutral Operating expenses per caseEUROQ4 2012 Q4 2011

2012 vs

2011

Sales & Marketing 0.49 0.51 -2%

Warehouse / Distribution 0.32 0.31 4%

Administration 0.21 0.20 6%

Total operating

expenses1.03 1.02 1%

Alternative Slide 1

which is in line with

what we have been

discussing of OPEX

per case – TO BE

DISCUSSED

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Q4’12 FY’12

YoY YoY

Net Sales Revenue (Eur m) 1,604.8 +5% 7,044.7 +3%

COGS other (Eur m) 55.6 -22% 453.1 -13%

Comp. Operating Expenses (Eur

m)

499.3 +5% 2,073.9 +1%

OPEX as % of NSR 31.1% +5bps 29.4% -60bps

9

We continue to focus on increasing operating efficiency

(*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and non-recurring items. Discrepancies in growth

rates are due to rounding.

Alternative Slide 2 to

use going forward

instead of OPEX per

case – TO BE

DISCUSSED

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Emerging markets were the main drivers of operating profitability in the fourth quarter

Comparable EBIT in million Euros

YoY

-29%

n/a

+14%

-22%

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Restructuring costs

FY 2012 recap

• Total €107m in pre-tax restructuring charges

• Total benefits in 2012 (from 2011 and 2012 actions) were approximately €48m

• Approximately €70m annualised benefits from 2013 onwards

FY 2013 targets

• Expect pre-tax restructuring charges of €50m

• Total benefits in 2013 (from 2012 and 2013 initiatives) expected at €65m

• Related benefits expected at €30m on an annualised basis

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Free Cash Flow, Working Capital

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in million EurosFY 2012 2012 vs

2011

Adjusted EBITDA* 758 (95)

Decrease in Working Capital 84 23

Net capital expenditure (412) (11)

Free Cash Flow (FCF) 341 (86)

in million EurosQ4 2012 2012 vs

2011

Adjusted EBITDA* 100 (41)

Decrease in Working Capital 19 (3)

Net capital expenditure (122) (11)

Free Cash Flow (FCF) (21) (45)

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500 € 500400

€ 600

2013 2014 2015 2016

13

Diversified financial profile

Debt maturity profile Other available facilities (Undrawn)

$$

• €500m Revolving Credit Facility until 2016

• €500m bridge loan to payback upcoming

bonds

• €550m bridge loan to finance squeeze-out

in million Euros

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2013 Financial outlook

• Input Costs: Expect low single-digits increase

• FX : Headwind based on current spot rates, but of lower magnitude than 2012

• Comparable Effective Tax Rate: between 23-25% in the medium-term

• Capital expenditure: 5.5-6.5% of net sales revenue in the medium-term

• Free Cash Flow: Expect to generate €1.3bn in the 2013-2015 period

Page 15: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

Operational Review & Strategy

Dimitris Lois

Chief Executive Officer

Page 16: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

Volume in Q4 grew for the second consecutive quarter

16(*) excluding currency translation impact and hyperinflation adjustment in Belarus

Q4

11

Esta

blis

hed

Dev

elop

ing

Emer

ging

Q4

12

-5%

+1%

+8%

2% volume increase in Q4

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We continued to win in the marketplace

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Gained or

maintained

sparkling volume

share in

21 markets

Gained or

maintained

NARTD

value share

in 23 markets

Page 18: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

Solid volume growth in Q4

driven by key brands

Premium Sparkling grew by 5%

Brand Coca-Cola grew by 5%

Coca-Cola Zero grew by 17%

Fanta grew by 3%

Sprite grew by 8%

Energy grew by 14%

Tea grew by 6%

Water declined by 6%

Juice grew by 1%

Multon grew volume by 21%

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Page 19: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

2012 Innovation

Nestea

Green Tea

with Stevia

Dobry Pulpy

Coca-Cola Euro 2012

edition cans Fanta

Strawberry-Kiwi

Fanta

Grape

Cappy Pulpy

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Dobry Leaf

TetraPak

Rosa

Plant

bottle

Nigeria:

Light-weight

PET bottle

water

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Established markets still challenged

• Italy: Volume declined by mid single-digits in the quarter, with Coca-Cola Zero up by high-teens. Economic conditions remain challenging

• Greece: Volume declined by mid-teens in Q4. Sparkling beverages and particularly Trademark Coca-Cola shows more resilience

• Switzerland: Volume declined by mid single-digits in Q4;Coca-Cola Zero grew by mid single-digits in Q4

• Ireland: Volume declined by mid single-digits in Q4; package mix improved, driven by sparkling beverages

(*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and unrealised commodity hedging results.

Italy46%

Greece18%

Switzerland12%

Austria11%

Island of Ireland

11%

Cyprus2%

Volume contribution

Trademark

Coca-Cola

-4%

Coca-Cola

Zero

+11%

Water

-4%

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Volume in developing markets is driven

by core sparkling beverages

• Poland: Volume increased by mid single-digits in Q4. Core

sparkling were the main volume drivers, growing by low

double-digits

• Hungary: Volume declined by mid single-digits in Q4. Coca-

Cola Zero grew by double-digits in the quarter

• Czech Rep.: Volume declined by low single-digits, due to water.

Core sparkling grew by mid single-digits in Q4

(*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and unrealised commodity hedging results.

Poland

42%

Hungary22%

Czech

Rep.15%

Croatia

7%

Slovakia

6%

Baltics

6%

Slovenia

2%

Volume contribution

Trademark

Coca-Cola

+7%

Sprite

+14%Fanta

+10%

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Emerging markets remain the growth driver

• Russia: Volume increased by mid-teens in Q4. Growth in the

quarter was broad-based with all categories showing

volume increase year-over-year

• Nigeria: Volume grew by high single-digits in Q4, driven by

sparkling and particularly Coca-Cola regular which grew in

the low-teens

• Romania: Volume increased marginally in Q4, on the back

of a mid single-digits increase in core sparkling

• Ukraine: Volume declined by low single-digits in Q4;

sparkling beverages grew by low double-digits

(*) Financial indicators on a comparable basis exclude the recognition of restructuring costs and unrealised commodity hedging results.

Trademark

Coca-Cola

+13%

Sprite

+12%

Fanta

+7%

Russia37%

Nigeria18%

Romania16%

Ukraine9%

Serbia & Montenegro

9%

Bulgaria5% Other

6%

Volume contribution

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External environment remains challenging

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Economic slowdown

& Currency volatility

Low disposable

income

Unemployment & Low

consumer confidence

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Winning in the

marketplace

Cost leadership

Generate solid Free

Cash Flow

Revenue ahead

of volume

Our Strategy

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Page 25: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

We are number 1 in sparkling

beverages in all of our 28 markets

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In 2012 we outperformed our main

competitor in total NARTD across all

our 28 countries

Winning in the marketplace

Page 26: Full-year results for the year ended 31 December 2012 · Full-year results for the year ended 31 December 2012. Disclaimer ... Dobry Pulpy Coca-Cola Euro 2012 edition cans Fanta Strawberry-Kiwi

Package mix- Channel Mix:

Driving revenue per case priority

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40% 60%Immediate Consumption

30%

Future Consumption70%

* *

(*) FY2011 Volume Split

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Optimising our cost base to enhance

competitiveness

Infrastructure optimisation

Logistics excellence

Manage OPEX and Working Capital

SAP is a

key

enabler

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Re-invest in the business to drive volume and revenue growth

M&A opportunities with compelling strategic rationale for our

business portfolio

Return value to our shareholders in an efficient way

[Dividend policy, gearing ratio etc. to come]

Use of Cash

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[Indicative topics that could be discussed in May]

Progress of squeeze-out process

Cash option take-up

Debt facility draw-down

Update on transaction

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Long-term growth drivers

Strong focus on

cost leadership

and history of

solid cash

generation

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Most known

brands in the world!

Low per capita

consumption with

great potential to grow

Diverse geographic footprint with strong emerging market exposure

Solid track

record of

winning in the marketplace

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For further information on Coca-Cola Hellenic please visit our website at:

www.coca-colahellenic.com

or contact our Investor Relations team

[email protected]

+30.210.6183 100