Damian Gammell , CEO Nik Jhangiani, CFO 1 1 Forw orwar ard d - - PowerPoint PPT Presentation

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Damian Gammell , CEO Nik Jhangiani, CFO 1 1 Forw orwar ard d - - PowerPoint PPT Presentation

Damian Gammell , CEO Nik Jhangiani, CFO 1 1 Forw orwar ard d Looking Sta Looking Statements tements This document contains statements, estimates or projections that constitute forward -looking statements concerning the financial


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Damian Gammell, CEO Nik Jhangiani, CFO

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Forw

  • rwar

ard d Looking Sta Looking Statements tements

This document contains statements, estimates or projections that constitute “forward-looking statements” concerning the financial condition, performance, results, strategy and

  • bjectives of Coca-Cola European Partners plc and its subsidiaries (together “CCEP” or the “Group”). Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,”

“plan,” “seek,” “may,” “could,” “would,” “should,” “might,” “will,” “forecast,” “outlook,” “guidance,” “possible,” “potential,” “predict,” “objective” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks that could cause actual results to differ materially from CCEP’s historical experience and present expectations or projections. As a result, undue reliance should not be placed on forward-looking statements, which speak only as of the date on which they are made. These risks include but are not limited to those set forth in the “Risk Factors” section of the 2017 Annual Report on Form 20-F, including the statements under the following headings: Risks Relating to Consumer Preferences and the Health Impact of Soft Drinks (such as sugar alternatives); Risks Relating to Legal and Regulatory Intervention (such as the development of regulations regarding packaging and taxes); Risks Relating to Business Integration and Synergy Savings; Risks Relating to Cyber and Social Engineering Attacks; Risks Relating to the Market (such as customer consolidation and route to market); Risks Relating to Economic and Political Conditions (such as continuing developments in relation to the UK’s exit from the EU, political instability in Catalonia, ‘Gilets Jaunes’ protest movement and demonstrations in France); Risks Relating to the Relationship with TCCC and Other Franchisors; Risks Relating to Product Quality; and Other Risks (such as competitiveness and transformation). Due to these risks, CCEP’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set out in CCEP’s forward-looking statements. Additional risks that may impact CCEP’s future financial condition and performance are identified in filings with the SEC which are available on the SEC’s website at www.sec.gov. CCEP does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable rules, laws and regulations. CCEP assumes no responsibility for the accuracy and completeness of any forward-looking

  • statements. Any or all of the forward-looking statements contained in this filing and in any other of CCEP’s respective public statements may prove to be incorrect.

Reconciliation and Definition of Alternative Performance Measures

The following presentation includes certain alternative performance measures, or non-GAAP performance measures. Refer to our Preliminary Unaudited results for the Fourth-Quarter and Full-Year Ended 31 December 2018, issued on 14 February 2019, (“Preliminary Unaudited Results”) which details our non-GAAP performance measures and reconciles, where applicable, our 2018 and 2017 results as reported under IFRS to the non-GAAP performance measures included in this presentation. This presentation also includes certain forward looking non-GAAP financial information. We are not able to reconcile forward looking non-GAAP performance measures to reported GAAP measures without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact or exact timing of items that may impact comparability.

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MERGER IN 2016

Cr Creating ting Sca Scale an le and the the World’s La Large gest st Bott Bottler ler by R by Reven enue ue

Revenue and operating profit are comparable (non-GAAP performance measure, refer to slide 2); adjusted EBITDA (a non-GAAP performance measure, refer to slide 2). FMCG = Fast Moving Consumer Goods. NARTD = Non- Alcoholic Ready-To-Drink. to *Iceland was acquired in July 2016.

2018 Revenue of €11.5BN, Adjusted EBITDA of €2.1BN & Operating Profit of €1.6BN (13.7% Operating Margin) Geographic Expansion with Operations in 13 Countries 24k Employees serving 1M Customer Outlets where, collectively, over 300M Consumers can enjoy our drinks One of the Largest FMCG Sales Forces in Europe with ~6K Strong Commercial Team & 1M Coolers

ICELAND*
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SLIDE 4 4

Launched Bold Accelerated Total Beverages Strategy Aligned with TCCC Reset Base for Profitable Growth Delivered Integration and Merger Synergies Sustainability Action Plan

Key A ey Achie hievement ements s Since Since Mer Merger ger

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SLIDE 5 5

We Operate in a Large & Growing Market We have Scale with a Market Leading Position We have a Strong Portfolio of Products & Packs We are Jointly Creating Value with our Customers We have Great, Talented & Engaged People

Wha hat t Ex Excites cites Us Us About the About the Futur Future

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SLIDE 6 6

2025 target

40% women in leadership positions: now at 35%, up 3PPS

Saf Safety y inc incide ident r rates halved since merger

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SLIDE 7 8 1 CCEP internal estimates 2 The Coca-Cola Company

Leading the Sustainability Conversation Solid Track Record Market Set to Grow by 2-3% CAGR1 Investing in Key Capabilities Transforming Our Segmentation & Diversification Unrivalled Customer Coverage Solid, Flexible Balance Sheet World’s Best Brands More Aligned than Ever Before with TCCC2

GIVING GIVING US US CONFIDENCE CONFIDENCE

IN OUR MID-TERM ANNUAL OBJECTIVES

Why W hy We e Belie Believe

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SLIDE 8 9 1 CCEP internal estimates 2 The Coca-Cola Company

Leading the Sustainability Conversation Solid Track Record Market Set to Grow by 2-3% CAGR1 Investing in Key Capabilities Transforming Our Segmentation & Diversification Unrivalled Customer Coverage Solid, Flexible Balance Sheet World’s Best Brands More Aligned than Ever Before with TCCC2

GIVING GIVING US US CONFIDENCE CONFIDENCE

IN OUR MID-TERM ANNUAL OBJECTIVES

Why W hy We e Belie Believe

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SLIDE 9 10 10

Growth

thr through

  • ugh Acceler

Accelerated ted Div Diver ersifica sification tion

Routes to Market Portfolio & Priority Packs Channel Segmentation Sustainability

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SLIDE 10 11

Siz Size e

  • f the Prize…

Revenue

to grow at a

2% 2% to to 3% 3% CAGR CAGR

(2017-2028) vs 1.1% (2010-2017)

Volume

to grow at a

0.5% 0.5% to to 1.5% 1.5% CAGR CAGR

(2017-2028) vs 0.6% (2010-2017)

CCEP Markets

by 2028

(Cumulative NARTD incremental revenue

  • pportunity)

+€30

30bn

bn

CCEP internal estimates; Total NARTD Retail Sales Value (combination of Global Data FY2017 for AFH channels, Nielsen FY2017 data for Home channels) 11
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BIG BIG Ch Chan anne nel l Gr Growth wth Opp Oppor

  • rtu

tunity nity

1 Nielsen FY 2017 2 Global Data FY 2017; HoReCa is Hotel/Restaurant/Café; QSR is Quick Serve Restaurants; Convenience includes Convenience Stores & Food To Go; Global Data excludes Disco/Bar/Night Club, Kiosks/tobacco/newsagents & Travel/Transportation 3 CCEP internal estimates, rounded. Forecasts not available for Petrol or At work/Institutional AFH = Away From Home channel

2017 NARTD VALUE MIX

CCEP AFH Volume Outpaced Home by 70bps in 2018

2018 2018-2021 NARTD CAGR FORECAST 3

Hyper/Supermarket1 36% Discounter1 10% HoReCa2 27% Leisure2 8% QSR2 7% Convenience2 6% Petrol2 4% At work/Institutional2, 3%

+2% +2% +6% +6% +4% +4% +6% +6% +4% +4% +5% +5%

46% 46%

Home (CCEP 57%)

54% 54%

AFH (CCEP 43%)

12
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c

Home

FROM… TO…

12 channel segments Key accounts

Away from Home Customer Clusters

Key ey Unloc Unlock k is is Thr hrou

  • ugh

gh New New Se Segme gment ntation tion App pproa

  • ach

h – Ch Chan ange ges ar are e Un Unde derw rway ay

Requires very different

  • rganisation structures

Channel 1st Packaging 2nd More focused Unlocks consumption occasions

13
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Our Our Div Diver ersifyi sifying ng Por

  • rtf

tfolio

  • lio

2017 2017- 2028 2028 GRO GROWT WTH CA CAGR GR1

SSD SSD Water Water RT RTD D Tea ea Energy nergy RT RTD Cof Coffee/ ee/ Plant lant Ba Based ed

Premiumise, Innovate & Accelerate Adult Expand & Premiumise Rapidly Scale & Expand Expand Inventively Drive New Growth

0.5 0.5-1% 1% 3-4% 4% 6-7% 7% 4-5% 5% 9-11% 11% TOTAL L NARTD TD REV EVENUE ENUE TO O GR GROW W 2-3% 3%

1 CCEP internal estimates,rounded
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With ith a F a Foc

  • cus

us on

  • n

Sma Small ll & Pr & Prem emium ium Prior Priority ity Pac acks ks

Prior Priority ity Small & Small & Pr Premium P emium Pac acks ks1 up 3% 3%2 in 2018

  • Mini cans +20%2
  • Glass +1%2
  • PET + 2%2

26% V 26% Value alue Shar Share3 across CCEP

(Belgium at 47%)

1 Priority small packs = PET <1Litre, Glass <1Litre, Cans < 33cl 2 FY 2018 volume growth 3 Nielsen CCEP Countries 26.08.18.
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c

0% 0% 50% 50% 100% 100% 150% 150% 200% 200%

SSD LPET SSD Glass SSD Mini Can SSD Can Energy Water RTD Coffee/Plant based RTD Tea Small PET CCEP EP Average verage

0.5% 2.5% 3.0% 3.5% 4.0%

2H 2H16 16 1H 1H17 17 2H 2H17 17 1H 1H18 18 2H 2H18 18

Average revenue per unit case1 (indexed) YoY growth2 in revenue per unit case

LPET = Large PET; RTD = Ready-to-Drink, Priority small packs = PET <1Litre + Glass <1Litre + Cans < 33cl 1 CCEP average revenue per unit case by product type as a percentage of CCEP average revenue per unit case, FY 2018 2 CCEP revenue per unit case growth, on a comparable and fx neutral basis (non GAAP measure – refer to slide 2)

Dri Driving ving Consistent Consistent Revenue enue Per er Case Case Gr Growth wth

16
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c

Digit Digital: al: Big Big Opp Oppor

  • rtunity

tunity

Online Online Gr Groc

  • cer

ery 2019 – GB #1, NL #2, BE #1 NARTD Online Online Value lue Gr Growth wth in Most Territories

B I G I N C R E M E N T A L R E V E N U E O P P O R T U N I T Y D R I V I N G A C C E L E R A T E D I N V E S T M E N T GAINING GAINING TRA TRACTION CTION WITH CUSTOMERS

17
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Increased Productivity & Optimised Sell Time Improved Customer Experience Clearer Focus On Execution

CCE CCEP P Wide ide Ne Next xt Gen Gener eration tion Sa Sales les For

  • rce

ce Too

  • ol

l Roll

  • ll Ou

Out t Un Unde derw rway ay

PL PLUS REA S REAL TI TIME E WH WHOLESAL ESALER ER IN INTEG TEGRA RATI TION EN ENABLI LING NG CUST USTOM OMER ER ORD ORDER ER CAPTURE PTURE

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Acceler Accelerated ed In Investme estment nt in in Cool Cooler ers s & & Front

  • nt Line

Line

NET COOLER PLACEMENTS (‘000) UNRIVALL UNRIVALLED ED FRONT FRONT LINE: LINE: FIE FIELD LD SA SALES LES VIS VISITS ITS PER PER DA DAY

8 12 14 16 2016 2017 2018 Target

Adding more feet

  • n the

street Incubator model for new products 25% AFH monthly coverage (vs 9% in 2016)

34 52 66 69 2016 2017 2018 2019E

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Our Our Div Diver ersifyi sifying ng Suppl Supply y Chain Chain

DEVELOPING DEVELOPING MORE MORE SUST SUSTAINA AINABLE E SE SECON CONDA DARY Y PACKAG PACKAGIN ING G

Investing More in Aseptic Lines Investing More in Glass Lines Investing More in Can Lines

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SLIDE 20 22 22

We e Want t ant to

  • Lead

Lead the Sustaina the Sustainability bility Con Conver ersa sation tion with with All All Stak Stakehold eholder ers

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On T On Trac ack to k to Deliv Deliver er Our Our 2025 2025 Pac acka kaging ging Co Commitm mmitmen ents ts Bu But t Nee Need t d to Go

  • Go Fast

aster er

2018: a at 74%2 2018: a at 98%1

100% 100%

Recyclability

100% 100%

Collection

1 Unaudited, Provisional 2 Represents an aggregated number, based on packaging collection rates by material in each of our markets which is then applied to our own packaging volumes. The way that packaging collection rates are calculated may differ across our markets and therefore this aggregated number should be treated as an estimate.

2018: a at 28%1

50% 50%

Recycled PET

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NEW NEW MATERI RIALS ALS NEW NEW TE TECHNO CHNOLOG OGIES ES NEW NEW RTM EMEDDE DDED I D IN POLI LITICAL CAL PROCE CESSES

Focussed on Innovation, Working with Str Strate tegic gic Par artn tner ers s

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SLIDE 23 25 1 CCEP internal estimates 2 The Coca-Cola Company

Leading the Sustainability Conversation Solid Track Record Market Set to Grow by 2-3% CAGR1 Investing in Key Capabilities Transforming Our Segmentation & Diversification Unrivalled Customer Coverage Solid, Flexible Balance Sheet World’s Best Brands More Aligned than Ever Before with TCCC2

GIVING GIVING US US CONFIDENCE CONFIDENCE

IN OUR MID-TERM ANNUAL OBJECTIVES

Why W hy We e Belie Believe

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We e ar are Guide e Guided by d by Fiv

Five

Str Strate tegic Impe gic Imperativ tives es to to Driv Drive Sustaina

Sustainable ble

Shar Shareh eholde

  • lder

r Ret etur urns ns

1. Customer & Execution Centric 2. Top Line Revenue Growth 3. Competitiveness 4. Sustainability & Stakeholder Equity 5. Culture & Capability Sustaina Sustainable ble Sha Shareh reholde

  • lder

Retu eturns rns Free Cash Flow Generation Optimal Capital Structure Quality Profit Growth Disciplined Investments

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2018 FY 2018 FY Financial Financial Summar Summary

REVENUE OPERATIN ING PROFIT IT EARNIN INGS PER SHARE COGS/UC FREE CASH FLOW5 ROIC IC5 DIV IVIDEND & & SHARE BUYBACK

  • 1. Revenue growth and COGS/UC growth are comparable and fx-neutral and include incremental soft drinks taxes (non-GAAP
performance measures – refer to slide 2).
  • 2. Operating profit, and diluted EPS are comparable (non-GAAP performance measures – refer to slide 2).
  • 3. Operating and diluted EPS growth are comparable and fx-neutral (non-GAAP performance measures – refer to slide 2).
  • 4. Full-year 2018 dividend per share growth versus full-year 2017 dividend per share growth.
  • 5. Non-GAAP performance measure – refer to slide 2.
  • 6. BPS = basis points.

€11.5BN 11.5BN

UP 4.5%1

CO COGS/UC UC

UP 5.5%1

€1.6BN 1.6BN2

UP 7.5%3

€1.06 1.06

UP 26.0%4

€500M 500M

SEP-DEC18

€1.1BN 1.1BN

UP 8.5%

9.9% 9.9%

UP 90 BPS6

€2.30 2.302

UP 8.5%3

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Deliv Deliver ered ed Solid Solid Trac ack k Rec ecor

  • rd

d Since Since Mer Merge ger r

1.88 2.12 2.30 2016 2017 2018

Annual Payout Payout Ratio

COMPARABLE EARNINGS PER SHARE 1 WORKING CAPITAL2 & FREE CASH FLOW 3 €M

35% 40% 46%5 2016 2017 2018 3.5x 3.2x 2.8x 2.6x 2015 2016 2017 2018

ANNUAL ORDINARY DIVIDEND DELIVERED WITHIN TARGET RANGE OF 2.5X TO 3.0X NET DEBT TO ADJUSTED EBITDA6

1,041 1,129 2017 2018 Working capital inflow FCF

Receivable days Payable days

3 6 5 2 6 2017 2018

Inventory days

266 324

4 1 Diluted EPS is comparable (non-GAAP financial measure, refer to slide 2). 2 Working Capital (a non-GAAP performance measure, is defined as net cash inflows from changes in trade and other receivables, inventories and trade and other payables. 3 Free cash flow (non GAAP measure – refer to slide 2). 4 Dividend Payout ratio a non-GAAP performance measure, refer to slide 2. 5 2018 dividend payout ratio reflects move to ~50% dividend payout ratio for Q4. 6 Net Debt to Adjusted EBITDA is a non-GAAP performance measure, see slide 2. 2015 and 2016 calculated assuming the merger occurred at the beginning of each year presented. 2015 refers to CCEP Overview investor presentation, 25 May 2016. Numbers are rounded.
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Near term focus on price & mix Expect more normalised balance from 2020 COMING COMING FROM: OM: AFH to outpace Home Growth in small & premium priority packs More efficient promotional activity CO COMING FR FROM: Segmentation & Diversification Broad innovation portfolio All driving higher transactions vs volume

Consumer pricing is at the discretion of the retailer

Volume Price/Mix

Ho How w We T e Think hink Abo About ut Our Our Lo Low w Sing Single le Digit Digit Revenu enue e Gr Growth wth

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Dri Driving ving Sustaina Sustainable ble Mid Sing Mid Single le Digit Digit

Op Operating ting P Profit fit Gr Growth wth

Ongoing focus

  • n cost control

& productivity efficiencies

Growth mix across CCEP territories Mid-single digit

  • perating

profit CAGR

Low single digit revenue growth leverage 1/3 volume 2/3 price/mix 2018: +30bps

Comparable operating profit margin

2017: +90bps

+120bps +120bps

(2016-2018)

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Result esulting in ing in Solid, Solid, Fle lexible xible Balance Sheet Balance Sheet

Mainta Maintain in

Strong & Flexible Balance Sheet

Ope Operate te

within 2.5x to 3.0x Net Debt to Adjusted EBITDA Leverage Ratio

Mainta Maintain in

Investment Grade Debt Rating

Per eriodica iodicall lly

Re-Evaluate Optimal Structure

EXPECT FREE CA CASH SH FL FLOW W GENERATION OF AT T LEA LEAST ST C.€1BN 1BN PA

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M&A

Pur Pursuing suing Disciplined Disciplined Retur eturns ns Enhan Enhancing In cing Investments estments

Invest in Core Business Capability to Support Top Line Growth & Productivity Opportunistically Invest in Value Accretive M&A

Geographic expansion to scale CCEP bottling

  • perations

Complementary adjacencies & partnerships

ROIC UP c.190BPS SINCE MERGER (2016-2018) TARGETING FURTHER IMPROVEMENT IN ROIC OF c.40BPS PER ANNUM

Core Business & Productivity

Portfolio expansion in partnership with TCCC

ROIC a non-GAAP performance measure – refer to slide 2. TCCC = The Coca-Cola Company
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Free Cash Flow Generation Optimal Capital Structure Quality Profit Growth Disciplined Investments

Sus ustainable tainable Shareholder hareholder Returns Returns

Dri Driving ving Susta Sustaina inable ble Shar Shareholder eholder Retur eturns ns

Dividend Payout ~50% Sh Share are Buyb Buybac ack3

  • f
  • f €1.5

1.5BN BN

(€0.5BN completed 2018)

OP profit1,2 up mid single digit At least €1BN pa1 ROIC1,4 +40bps pa Maintain ND2E 2.5x-3.0x1

1 Mid term annual objective 2 Operating profit margin is comparable (non GAAP performance measure, refer to slide 2) 3 Subject to further shareholder approval at the 2019 AGM. Share buyback currently preferred approach 4 Return on Invested Capital (non GAAP performance measure, refer to slide 2)
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Summa Summary y Mid Mid Ter erm m

Annual Annual Objectiv Objectives es & 2019 & 2019 Guidance Guidance

Revenue G Growth L O W S I N G L E D I G I T L O W S I N G L E D I G I T Compa Comparable ble Ope perating ng Profit

  • fit Growth

M I D S I N G L E D I G I T 6 - 7 % Free Ca Cash sh Flo low A T L E A S T € 1 B N P A € 1 - 1 . 1 B N Net De Debt / Ad / Adjust justed EBITD EBITDA: A: 2 . 5 X – 3 . 0 X 2 . 5 X – 3 . 0 X ROIC IC c . + 4 0 B P S P A c . + 4 0 B P S Dil Diluted EP EPS S Growth M I D S I N G L E D I G I T 1 0 - 1 1 % CA CAPE PEX c . 5 % N S R c . 5 % N S R Di Divi vide dend nd ~ 5 0 % P A Y O U T R A T I O ~ 5 0 % P A Y O U T R A T I O

Objectives for revenue, operating profit, and diluted EPS are comparable and fx-neutral (non-GAAP performance measures, refer to slide 2); Mid term EPS growth excludes share buyback; 2019 EPS guidance assumes 2019 share buyback of €1BN; Net Debt to Adjusted EBITDA, Free Cash Flow. Dividend payout ratio and ROIC are non-GAAP performance measures – refer to slide 2; share buyback subject to further shareholder approval at the 2019 AGM; share buyback currently preferred approach; Guidance for 2019 revenue growth excludes the impact of soft drinks taxes of c.1%

MID MID TE TERM RM 2019 G 2019 GUIDAN ANCE CE

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Our Our Ena Enabler blers f s for

  • r

Gr Growth wth

World Class Franchise Relationships with TCCC Engaged & Culturally Diversified Workforce Curious, Learning, Humble Organisation External Perspective CCEP Ventures World Class Customer Service

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4 3 5 6

Small & Premium Priority Packs

Sprite Relaunch Monster Honest

P l ans for 2019 Mor e Al i gned than ever befor e w i th

Fuze Tea Mixers

Coke™

1 2

Capabilities Sustainability

9 10 10 8 7

Supply chain

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SLIDE 35 37 1 CCEP internal estimates 2 The Coca-Cola Company

Leading the Sustainability Conversation Solid Track Record Market Set to Grow by 2-3% CAGR1 Investing in Key Capabilities Transforming Our Segmentation & Diversification Unrivalled Customer Coverage Solid, Flexible Balance Sheet World’s Best Brands More Aligned than Ever Before with TCCC2

Why W hy We e Belie Believe

ULTIMATE GOAL IS TO DRIVE

SUST SUSTAIN AINABL ABLE E SHAR SHAREHOL EHOLDER ER RETUR RETURNS NS

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38

Thank hank Y You!

  • u!