John F. Brock Chairman and Chief Executive Officer February 17, 2010
Dec 17, 2014
John F. BrockChairman and Chief Executive Officer
February 17, 2010
Forward-Looking Statements
Included in this presentation are forward-looking management comments
and other statements that reflect management’s current outlook for future
periods. As always, these expectations are based on currently available
competitive, financial, and economic data along with our current operating
plans and are subject to risks and uncertainties that could cause actual
results to differ materially from the results contemplated by the forward-
looking statements. The forward-looking statements in this news release
should be read in conjunction with the risks and uncertainties discussed in
our filings with the Securities and Exchange Commission, including our most
recent annual report on Form 10-K and subsequent SEC filings.
Agenda
BUILDING ON STRENGTHS
DRIVING GROWTH
DELIVERING VALUE
KEY TAKEAWAYS
BE THE BEST BEVERAGE SALES AND CUSTOMER SERVICE COMPANYVISION:
#1 or strong #2 Most valued supplierWinning and inclusive culture
4
Our Vision, Global Operating Framework and Financial Objectives Focus Our Business
DRIVE CONSISTENT LONG-TERM PROFITABLE GROWTH
Solid Results in a Challenging Environment
Improved operating results in North America
Continued solid growth in Europe
Focused on creating value
Strengthened balance sheet
Solid free cash flow
Revenue
OI
EPS
COMPARABLE FX NEUTRAL
(1)% 3%
9% 17%
21% 32%
FY09 % GROWTH
Source: CCE Internal Reports; figures presented on a comparable basis
Improving Results in North America
0.0%
-2.0% -1.5%
-5.0%
-2.5%
2.5%
2004 2005 2006 2007 2008 2009
MARGIN GROWTH (price/pc – cost/pc) Driving value for consumers and
customers
Enhancing brand value through price/package architecture
Managing to deliver results and reinvest for growth
Sparkling volume showing sequential improvements
Economic headwinds demand continued improvementSource: CCE Internal Reports; figures presented on a comparable
and currency-neutral basis
Continued Solid Results in Europe
Share source: Nielsen Europe aggregated database YTD to Dec 2009 Note: Sparkling includes Colas, flavored carbonates, lemonades and mixers. Excludes sparkling water, and sports and energy drinks.
Balanced growth FY09
Growth built on core brand success, portfolio expansion, and strong execution
Driving improved effectiveness to be our customers’ most valued supplier
Economic headwinds demand continued improvement
GROWING SHARE IN GROWING CATEGORIESIndustry
Volume GrowthCCE Share
Point Change
In millions of USD NARTD SSD NARTD SSD
GB +0.8% +1.2% +0.1 +0.2
France +2.2% +6.8% +0.5 flat
Belgium +0.5% +2.7% +0.9 +1.2
Netherlands +4.5% +5.0% +0.2 flat
Business TerritoriesNorth America Europe
Revenue ($ million) $15,128 $6,517
OI ($ million) $1,106 $970
Employees 59,000 11,000
Physical Cases 1.4 billion 0.5 billion
Multi Serve / Single Serve % Mix 73% / 27% 59% / 41%
Sparkling/Still % Mix 82% / 18% 87% / 13%
Canada
Central
East
South
West
Great Britain
Benelux
France
Source: CCE Internal Reports as of YE 2009; figures presented on a comparable basis
Leading Brands
Red, Black, Silver Still
WaterSparkling flavors and energy
Source: The Coca-Cola Company (TCCC)
Opportunities for Growth
MillionsM
exic
o
Unite
d St
ates
Belg
ium
Aus
tralia
Spa
in
Irela
nd
Can
ada
Gre
at B
ritai
n
Ger
ma
ny
Net
herla
nds
Italy
Fran
ce
0
100
200
300
400
500
600
700
635
412
340 324303
241 237 196 179 147 141 130
800 TCCC Consumption Per Capita (8oz servings, 2008)
Agenda
BUILDING ON STRENGTHS
DRIVING GROWTH – NORTH AMERICA
DELIVERING VALUE
KEY TAKEAWAYS
NO
RTH
AM
ERIC
A
2010 Priorities
NO
RTH
AM
ERIC
A
Proactively manage through dynamic environment
Evolve price / package architecture
Enhance in-store execution
Increase customer service
Drive employee engagement & diversity
Unlock system synergies & value
Red, Black, and Silver showed positive growth in 4Q09, led by the strength of Coca-Cola Zero
1.01.4x
1.8x2.1x
2006 2007 2008 2009
COCA-COLA ZERO CASE GROWTHIndex to 2006
NO
RTH
AM
ERIC
A
Monster Driving Continued Growth in Energy
NO
RTH
AM
ERIC
A
25% 8½%22%
2007 2008 2009Full Throttle and Other Monster
ENERGY PORTFOLIO GROWTH(volume)
Still Portfolio
Stills NO
RTH
AM
ERIC
A
VOLUME MIX
Waters: 42%
Isotonics / Sports: 33%
Juice/Juice Drinks: 15%
Source: CCE Internal Reports, FY09
Package Diversity
NO
RTH
AM
ERIC
A
Strong marketing assets and brand programming
NO
RTH
AM
ERIC
A
World Cup 2010
North American Commercials
“Mini Can”Coca-Cola
“Olympic Anton”Coca-Cola
“Olympic Game Cans”Coca-Cola
NO
RTH
AM
ERIC
A
Being our Customers’ Most Valued Supplier
Fountain Harmony
Go-To-Market Execution
Improve daily execution
Drive order accuracy and improve inventories
Create value for our customers
Improve our Go-To-Market Model
Unlock system synergies and value
Deliver efficient and effective service
Fact-Based Order W rit ing
Based on Days Supply
Increased Inventory on
the Floor
Reduced & Organized Backroom Inventory
Merchandising Aligned w ith
Consumer Demand
100% In-Stock
Increased Top-Line Grow th
SMOExceeds Customer
Expectations
NO
RTH
AM
ERIC
A
RED improves:
Right Execution Daily (R.E.D.)RED is a continuous improvement model for in-store execution
Learn/Adjust
Plan: Look of Success
Execute
Track
Outlet specific information
Outlet specific execution
Customer service
NO
RTH
AM
ERIC
A
Selling and Merchandising Optimization (SMO)
SMO…
Improves in-stock conditions
Reduces backroom inventory
Increases cases on display
Drives sales and profit growth for CCE and our customers
From To
Fact-Based Order W rit ing
Based on Days Supply
Increased Inventory on
the Floor
Reduced & Organized Backroom Inventory
Merchandising Aligned w ith
Consumer Demand
100% In-Stock
Increased Top-Line Grow th
SMOExceeds Customer
Expectations
NO
RTH
AM
ERIC
A
Boost Zones are critical to building relationships with consumers & customers
High density, high foot traffic area where consumers work, shop, and play
Connects our brands to consumers
Improves sales and customer satisfaction
Generates a positive return on investment
Double the number of Boost Zones in 2010
North America Boost Zones
NO
RTH
AM
ERIC
A
Ownership Cost Management (OCM)A new way of managing operating expenses
AGGRESSIVE TARGETS
MATRIXED OWNERSHIP & ACCOUNTABILITY
CLEAR COMMUNICATION
DISCIPLINED ROUTINE MANAGEMENT
TEAM DRIVEN SPIRIT
Underpinned by Team-Driven Recognition for the Right Behaviors
NO
RTH
AM
ERIC
A
Fountain HarmonyIntegrating fountain and bottle/can in portions of CCE territories
Integrated approach is
Decreasing costs
Improving financial results
Enhancing customer service
Capturing system synergies
NO
RTH
AM
ERIC
A
Coca-Cola Supply
Transportation
Working Capital
Network Optimization
Best Practices Integrated approach to common activities
Optimize quality, flexibility, and service
Improve transportation efficiencies
Expand best practices
Optimize network operations
Improve working capital through more effective inventory management
Enable product and package innovation
Supply Chain is a strategic asset and a critical driver of our business
Supply Chain Integration: A single supply chain that services
all customers in North America
NO
RTH
AM
ERIC
A
Agenda
BUILDING ON STRENGTHS
DRIVING GROWTH – EUROPE
DELIVERING VALUE
KEY TAKEAWAYS
EURO
PE
2010 Priorities
Continue to execute
Build on world class commercial capabilities
Improve customer centric supply chain
Expand boost zones
Grow Red, Black, Silver
Grow Portfolio
Be #1 with Customers
EURO
PE
Red, Black, and Silver showed solid FY09 growth
+ 15½%
+ 5%
+ 8%
4½%3½%
7½%
2007 2008 2009
Growth of Red, Black, Silver
FY09 Growth
EURO
PE
Energy
Sparkling Flavors and Energy
EURO
PE
Sparkling Flavors
Stills
EURO
PE
Water Isotonics/Sports Other Stills
Solid Marketing
Coca-Cola‘Open Happiness’
Coca-ColaWorld Cup 2010
Coke Light 25 Years Celebration
Coca-Cola
Fanta RelaunchWinter Olympics Activation
EURO
PE
European Commercials
“Finals”Coca-Cola
“Less Serious”Fanta
“PowerAde”PowerAde
EURO
PE
Clear plan for 2010
Building My Coke Improving Flavors Growing Energy & Stills
In Market Execution Customer-Centric Supply Chain
Building Capabilities
EURO
PE
World Cup 2010
Agenda
BUILDING ON STRENGTHSDRIVING GROWTH Corporate Responsibility and Sustainability (CRS)
DELIVERING VALUE
KEY TAKEAWAYS
Corporate Responsibility and Sustainability (CRS)
WATER STEWARDSHIP
DIVERSE & INCLUSIVECULTURE
ENERGY & CLIMATE
PRODUCT PORTFOLIO /BALANCED &
ACTIVE LIFESTYLE
PACKAGING & RECYCLING
Corporate Responsibility and Sustainability (CRS)
Reduced water use by more than
5% since 2006
Conducted first global CRS in
Action Week for 70,000 employees
Already reduced overall carbon
footprint by more than 1%
Reduced calories in US schools by
75%, committed to more clear caloric
labeling
Facilities recycle more than 89% of waste in NA, 98%
in Europe
Hybrid Electric VehiclesRecycling 100% of Beverage Packages
RPET UniformsPlant Bottle and HFC-free Coolers
CRS – Olympic Activation in Vancouver
More than 55,000 EMS devices have been installed to date. Collectively, they have produced a 35% energy savings.
Within the past year, we began installing energy managementsystem (EMS) devices on refrigeration equipment.
CRS: EMS in Europe
Through the use of motion sensors, the EMS devices can be programmed to detect a store’s hours of operations and auto-adjust the equipment’s temperature and energy settings.
CRS: Hybrid Trucks in North America Largest heavy-duty hybrid delivery fleet in North America
– 336 trucks in North America, piloted in Europe
– Will have more than 500 by end of 2010
Fuel efficiency increased ~ 30%
Emissions decreased ~ 30%
CRS: Bellevue, WA Facility
2004 2005 2006 2007 2008 2009
Cost of Waste Removal
Recycle Revenue
Water Stewardship –Reduced Water Use Ratio Over 15% since 2006
Sustainable Packaging/Recycling - Recycle 99.8% of materials
Energy Conservation/Climate Change -Reduced energy use by 3.7 million kW hours/yr
20092004 2005 2006 2007 2008
The Financial Impact & Benefit – Waste Removal Costs down 70% and Exceeded
by Recycling Revenue
Our People
Motivate our people &manage relationships
Build talent pipeline & develop capabilities
Ensure right environment,rewards & opportunities
Expand diversity
Agenda
BUILDING ON STRENGTHS
DRIVING GROWTH
DELIVERING VALUE
KEY TAKEAWAYS
Financial Priorities
Consistent earnings in line with our long-term objectives
Maximize free cash flow and improve financial flexibility
Increase return on invested capital and improve shareowner returns
DRIVE CONSISTENT LONG-TERM
PROFITABLE GROWTH
Long-Term Growth Objectives
Revenue Growth: 4%-5%
Operating Income Growth: 5%-6%
EPS growth: High single digits
ROIC Improvement: ≥ 20 bps/yr
Outlook for 2010
Notes: Excludes non-recurring items. Currency neutral, as of Feb 10, 2010.
RevenueGrowth
OIGrowth
EPSGrowth
2010 Guidance Long-Term Goals
Low Single Digits 4 – 6%
Mid to High Single Digits 5 – 6%
High Single Digits High Single Digits
5.0x4.6x 4.3x 4.0x 3.9x
3.5x 3.3x2.9x
2002 2003 2004 2005 2006 2007 2008 2009
Increasing Financial Flexibility
Note: Net Debt is total debt less cash; EBITDA figures are on a comparable basis
Net Debt to EBITDA
$12.0 $11.6 $11.0 $10.0 $9.8 $9.2Net Debt (in Billions)
$8.3 $7.7
Strong Free Cash Flow and Increasing Shareowner Returns
$655$872 $800
2008 2009 2010E
Free Cash Flow($ millions)
Expected free cash flow in 2010 is approximately $800 million
Dividend is up 50% since 2006
Planned share repurchase of up to $600 million by YE 2010
Note: Free cash flow is defined as total debt, current and long-term, less cash and cash equivalents
Key Takeaways
CCE is executing our strategic priorities
2009 was a record earnings year for CCE in a difficult economic environment
Despite some improvements, the overall economic environment remains challenging
Working with TCCC, we are focused on restoring sustained, profitable growth
Long-term financial objectives are attainable
John F. BrockChairman and Chief Executive Officer
February 17, 2010