full-year results for the year ended 31 december 2012 · full-year results for the year ended 31...
TRANSCRIPT
Dimitris Lois – CEO
Michalis Imellos - CFO
Full-year results for the
year ended 31 December 2012
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.
3
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
Financial Review
Michalis Imellos
Chief Financial Officer
5
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%
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
7
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
8
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
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
10
Emerging markets were the main drivers of operating profitability in the fourth quarter
Comparable EBIT in million Euros
YoY
-29%
n/a
+14%
-22%
11
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
Free Cash Flow, Working Capital
12
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)
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
14
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
Operational Review & Strategy
Dimitris Lois
Chief Executive Officer
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
We continued to win in the marketplace
17
Gained or
maintained
sparkling volume
share in
21 markets
Gained or
maintained
NARTD
value share
in 23 markets
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%
18
2012 Innovation
Nestea
Green Tea
with Stevia
Dobry Pulpy
Coca-Cola Euro 2012
edition cans Fanta
Strawberry-Kiwi
Fanta
Grape
Cappy Pulpy
19
Dobry Leaf
TetraPak
Rosa
Plant
bottle
Nigeria:
Light-weight
PET bottle
water
20
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%
21
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%
22
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
External environment remains challenging
23
Economic slowdown
& Currency volatility
Low disposable
income
Unemployment & Low
consumer confidence
Winning in the
marketplace
Cost leadership
Generate solid Free
Cash Flow
Revenue ahead
of volume
Our Strategy
24
We are number 1 in sparkling
beverages in all of our 28 markets
25
In 2012 we outperformed our main
competitor in total NARTD across all
our 28 countries
Winning in the marketplace
Package mix- Channel Mix:
Driving revenue per case priority
26
40% 60%Immediate Consumption
30%
Future Consumption70%
* *
(*) FY2011 Volume Split
27
Optimising our cost base to enhance
competitiveness
Infrastructure optimisation
Logistics excellence
Manage OPEX and Working Capital
SAP is a
key
enabler
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
28
[Indicative topics that could be discussed in May]
Progress of squeeze-out process
Cash option take-up
Debt facility draw-down
Update on transaction
29
Long-term growth drivers
Strong focus on
cost leadership
and history of
solid cash
generation
30
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
31
For further information on Coca-Cola Hellenic please visit our website at:
www.coca-colahellenic.com
or contact our Investor Relations team
+30.210.6183 100