ccamatil.com Presentation to Shareholders 15 May 2019 2019 ANNUAL GENERAL Ilana Atlas, Chairman Alison Watkins, Group Managing Director MEETING
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Presentation to Shareholders
15 May 2019
2019ANNUAL GENERAL
Ilana Atlas, Chairman
Alison Watkins, Group Managing Director
MEETING
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Coca-Cola Amatil advises that these presentation slides and any related materials and cross referenced information, contain forward looking statements which may be subject to significant uncertainties outside of Coca-Cola Amatil’s control.
No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based.
Actual future events may vary from these forward looking statements and you are cautioned not to place reliance on any forward looking statement.
DISCLAIMER
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GENERAL MEETING2019 ANNUAL
Ilana Atlas, Chairman
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ADDRESSCHAIRMAN’S
Ilana Atlas, Chairman
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PRESENTATION
GROUP MANAGING DIRECTOR'S
Alison Watkins, Group Managing Director
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COCA-COLA AMATIL GROUP LEADERSHIP TEAM
Alison WatkinsGroup Managing Director
Martyn RobertsGroup Chief Financial Officer
Betty IvanoffGroup General Counsel
Kate MasonGroup Director, People & Culture
Chris SullivanGroup Director, Partners & Growth
Debbie NovaGroup Chief Information Officer
Liz McNamaraGroup Director, Public Affairs, Communications & Sustainability
Kadir GunduzManaging Director,Indonesia & Papua New Guinea
Chris LitchfieldManaging Director, New Zealand & Fiji
Shane RichardsonManaging Director, Alcohol & Coffee
Peter WestManaging Director, Australian Beverages
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COCA-COLA AMATIL – OUR PEOPLE
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We know that our success as an organisation depends on our people. We are proud of our culture and values, and the distinctive and positive contribution our people make.
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PERFORM: OUR PLANS REFLECT THREE STRATEGIC THEMES
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Strengthening category leadership position Leading beverage brands Innovative marketing to drive equity and sales Evolving portfolio that adapts to changing consumer preferences
LEAD
Step change in productivity and in-market execution World-class customer servicing capability Route to market that provides customer diversification and real
competitive advantage Effective leverage of our large-scale, low-cost manufacturing, sales and
distribution capability
EXECUTE
PARTNERBetter alignment with The Coca-Cola Company and our other partners Shared vision of success and aligned objectives Joint plans for growing system profitability Balanced share of risk and rewards
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SEGMENT EBIT CONTRIBUTIONS
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Underlying EBIT $ million FY18 FY17Change
%
% of Groupunderlying
EBIT
Australian Beverages 376.1 412.6 (8.8)
New Zealand & Fiji 112.4 104.8 7.3
Indonesia & Papua New Guinea 85.1 90.9 (6.4)
Alcohol & Coffee 55.7 49.7 12.1
Corporate & Services 5.2 20.3 (74.4)
Total Continuing Operations 634.5 678.3 (6.5)
59.3%
17.7%
8.8%
0.8%
13.4%
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GROW: WE HAVE MULTIPLE GROWTH PATHWAYS
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GROWTH WITHIN
GROWTH BETWEEN
GROWTH BEYOND
Additional growth within our businesses
Leveraging and extending brands and capabilities (eg our route-to-market)
Building and adding new brands and channels
Additional growth between our businesses
International coffee (eg Indonesia)
International beer and rum (eg Fiji to Australia and New Zealand)
Growth beyond our current businesses
Amatil X
Additional Coca-Cola territories
Extending Amatil brands and capabilities to new geographies
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STRONG ORGANISATION: UNDERPINS ALL OUR PLANS
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Develop a fit for purpose organisational and governance structure Major restructure of our People and Culture and our IT teams to embed a
“One Amatil” approach. Continue our group wide approach to all our owned and leased property
arrangements
FIT FOR PURPOSE
Drive leader led growth Leadership capability development Invest in our people and create opportunities for growth (eg Indonesian
Step and Step Up programs) Build capability to share across all our geographies
LEADERSHIP
TRUST AND REPUTATION
Build trust and our reputation with stakeholders Binding sustainability goals for 2020 Improvement in employee engagement over two years
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OUTLOOK
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2019 OUTLOOK
We remain committed to our Shareholder Value Proposition targeting a return to delivery of mid-single digit earnings per share growth from 2020
This will depend on the success of revenue growth initiatives in Australia, Indonesian economic factors and regulatory conditions in each of our markets
TARGET FROM 2020 AND BEYOND
2019 will be the second year of a two-year transition phase for the Group.
Australian Beverages: we will be positioned for growth in 2020 with the completion of the additional $10 million of investment in our Accelerated Australian Growth Plan to increase our salesforce and, with container deposit schemes in NSW and Queensland substantially embedded by the end of 2019
Indonesia: we are encouraged by the volume growth we delivered from April 2018 and will continue to deliver our Accelerate to Transform strategy with additional direct marketing expenditure to be invested in 2019; however macroeconomic conditions, weak Indonesian Rupiah, higher commodity costs and current consumer spending trends are expected to continue
New Zealand & Fiji, Papua New Guinea and Alcohol & Coffee: expected to deliver growth in line with our Shareholder Value Proposition
Corporate & Services: an EBIT loss of $10 to $12 million expected in line with the outlook provided in November 2018 due to lower property rental and services earnings, increased Group capability and investment in IT platforms
As part of our cost optimisation programs in Australian Beverages, we are expecting one-off costs in 2019 of up to $30 million
We are pursuing additional opportunities within our Property Division which may result in one-off gains in 2019, partially offsetting the one-off costs
NON-TRADING ITEMS
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OUTLOOK: CAPEX, DIVIDENDS AND BALANCE SHEET
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CAPITAL EXPENDITURE
Balance Sheet to remain conservative with flexibility to fund future growth opportunities
Expecting to maintain strong return on capital employed
We will seek to maximise value for shareholders by pursuing additional opportunities within our Property Division
BALANCE SHEET
2019 Group capex expected to be similar to Group capital expenditure in 2018, reflecting the deferred payments from 2018 and continued deployment of capital in Indonesia, including a second affordable small sparkling pack line
Continue to target medium term dividend payout ratio of over 80 per cent
It is anticipated that franking will be at a lower level in the future due to the increasing proportion of earnings from outside Australia
DIVIDENDS
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GENERAL MEETING2019 ANNUAL
Ilana Atlas, Chairman
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Annual Reports
ITEM 1
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To consider the Annual Report, the Financial Report and the Reports of the Directors and of the External Auditor for the year ended 31 December 2018.
There is no vote for this item.
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Adoption of FY2018 Remuneration Report
ITEM 2
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“To adopt the Company’s Remuneration Report for the year ended 31 December 2018.”
Please note that the vote on this resolution is advisory only, and does not bind the Directors or the Company.
An explanatory note to this item appears on page 4 of the Notice of Meeting.
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Adoption of FY2018 Remuneration Report
ITEM 2
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Proxy & Direct Votes
For Undirected Against Total
Resolution 1 520,700,208 1,024,431 12,462,659 534,187,298
% of vote 97.48% 0.19% 2.33% 73.78% of issued capital
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Re-Election of Board Endorsed Directors
ITEM 3
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Mr Massimo (John) Borghetti, AO Mr Mark Johnson
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Item 3(a) – Re-election of Mr Massimo (John) Borghetti, AO
ITEM 3
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• Independent
• Joined Board: December 2015
• Board Committees: Chairman of the People Committee, Member, Related Party Committee, Risk & Sustainability Committee and Nominations Committee
Background
Mr Borghetti was the Chief Executive Officer and Managing Director of the Virgin Australia Airline Group from May 2010to March 2019. Mr Borghetti has had over 40 years’ experience in the aviation industry, including a long career at Qantas, which included several senior positions, including Executive General Manager.
In addition to his directorship of Coca-Cola Amatil, he is a Director of the Art Gallery of the NSW Board of Trustees.
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Item 3(a) – Re-election of Mr Massimo (John) Borghetti, AO
ITEM 3
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Proxy & Direct Votes
For Undirected Against Total
Resolution 2(a)
522,354,274 1,057,558 12,283,182 535,695,014
% of vote 97.51% 0.20% 2.29% 73.99% of issued capital
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Item 3(b) – Re-Election of Mr Mark Johnson
ITEM 3
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• Independent
• Joined Board: December 2016
• Board Committees: Chairman of the Audit and Finance Committee, Member, Risk and Sustainability Committee, Related Party Committee and Nominations Committee.
Background
Mr Johnson was CEO and Senior Partner of PwC from July 2008 to June 2012 and held other senior positions (both internationally and in Australia) during his 30-year career at PwC, serving major clients in areas of audit, accounting, due diligence, fund raising and risk and governance.
In August 2018, Mr Johnson was appointed as a Commissioner of PT Coca-Cola Bottling Indonesia and PT Coca-Cola Distribution Indonesia, both being subsidiaries of the Company.
Mr Johnson is the Chairman of G8 Education Limited, and MH Premium Farms. He is also holds several directorships with owner-managed businesses and not-for-profit organisations.
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Item 3(b) – Re-Election of Mr Mark Johnson
ITEM 3
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Proxy & Direct Votes
For Undirected Against Total
Resolution 2(b)
531,747,245 1,064,610 2,189,165 535,001,020
% of vote 99.39% 0.20% 0.41% 73.90% of issued capital
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Participation by Executive Director in the
2019-2021 Long Term Incentive Plan (LTIP)
ITEM 4
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“That approval is given for the purposes of ASX Listing Rule 10.14 and for all other purposes, for the grant of performance share rights to Ms Alison Watkins, the Group Managing Director of the Company, under the Coca-Cola Amatil Limited 2019-2021 Long-Term Incentive Plan, as described in the Explanatory Notes that form part of this Notice of Meeting.”
An explanatory note to this item appears on pages 4-7 of the Notice of Meeting.
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ITEM 4
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Proxy & Direct Votes
For Undirected Against Total
Resolution 3 524,641,993 1,024,132 9,801,495 535,467,620
% of vote 97.98% 0.19% 1.83% 73.96% of issued capital
Participation by Executive Director in the
2019-2021 Long Term Incentive Plan (LTIP)
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