AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
Business Outlook coca cola enterprises
1.
2. 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.
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3.
4. Agenda
120-Day Initiative
North America – Restoring Growth
Europe – Delivering Growth
Financial Overview
Summary
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5. Our 120-Day Review Is Complete – We Have
Accomplished The Objectives Stated In July
• Accelerate and expand the scope and
pace of change
• Focus on supply chain, operations, price-package
architecture
• Put into motion essential changes required to drive
long-term profitable growth in North America (NA)
• Work with The Coca-Cola Company (TCCC) to
improve the long-term outlook for our NA
business through a continuous stream of value
creating initiatives
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6. Our Vision and Global Operating
Framework
VISION
Be the Best Beverage Sales and
Customer Service Company
DRIVE CONSISTENT
LONG-TERM
PROFITABLE GROWTH
• #1 or strong #2
• Most valued supplier
• Winning and
inclusive culture
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7. Key North American 120-Day Actions
New integrated supply chain initiative
New price/package architecture
New incidence-based economic model
Reorganization of our operations
Identified additional areas of opportunities
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8. Outlook for 2008 and 2009
• Execute against our three strategic priorities
• Deliver 2008 EPS of $1.28 - $1.31(comparable)
• Deliver 2009 mid single-digit EPS growth
(comparable, currency neutral)
• Long-term objectives are challenging, but
attainable
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9. Agenda
120-Day Initiative
North America – Restoring Growth
Europe – Delivering Growth
Financial Overview
Summary
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10. North America
Outlook
• Challenging economic environment
• Employees committed to winning in
the marketplace
• Improved alignment with TCCC
• Improved commodity cost outlook
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11. North America
Restoring Growth
• Reduce, Reallocate, Recruit,
and Reenergize
• Revitalize sparkling beverages
• Accelerate still beverage growth
• Win in on-premise
• Improve execution
• Focus on expense control
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12. North America
Brand Initiatives
STILL
SPARKLING
SPARKLING STILL
Red Black Silver glacéau
Sprite and Fanta PowerAde
Grow Energy Water
Teas & Juices
Marketing Activation
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13. North America
Price / Package
MULTI-SERVE SINGLE-SERVE
Diversified can packs Package diversification
• •
Big bottle shrink multi-pack “Entry priced” package
• •
New pricing strategy Expand aluminum bottles
• •
in targeted locations
2 Liter contour bottle
•
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14. North America
System Supply Chain Integration
VISION
An integrated supply network of people and
assets in NA that is a strategic asset to the
Coca-Cola System, enabling brand-building
and our customer growth agenda
OBJECTIVE
Efficiently deliver products to the customer
on time and in full
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15. North America
System Supply Chain Integration
• Supply chain as a strategic asset
• Integrated approach to common activities
• Enable growth while reducing waste and inefficiency
• Optimize quality, flexibility, and service
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16. U.S.
New Incidence-based
Economic Model
• More closely aligns TCCC and CCE
• Simplifies economic relationship by
netting funding
• More aligned annual planning process
• 2009 is a transition year
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17. North America
Key Takeaways –
North America 2009
• Focused on sparkling beverage revitalization
• Be the fastest growing still beverage
company
• Drive productivity to invest in growth and
capability
• Strengthened partnership with TCCC focused
on volume and profit growth
• Win in the marketplace
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18.
19. North America
Coca-Cola North America –
Strategic Goals
• Revitalize and grow sparkling beverages
• Lead profitable growth in still beverages
• Develop best-in-class commercial and customer
service capabilities
• Drive productivity in everything we do
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20. Agenda
120-Day Initiative
North America – Restoring Growth
Europe – Delivering Growth
Financial Overview
Summary
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21. Europe
Business Environment
• Solid 2008 performance
• Acknowledged view of the headwinds
in Europe
• Declining GDP and recessionary trends
• Consumers changing spending habits
• Retailers increasing focus on price/value
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22. Europe
Delivering Growth
• Business is profitable and balanced
• Significant room for growth in Europe
• Clear plan for 2009
– Strengthen sparkling beverages
– Grow still beverages
– Drive efficiencies, leveraging our European scale
• Systematic approach to transformation
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23. Europe
Focused on Four Portfolio
Growth Strategies
Accelerate Step-change
Three Cola presence in
momentum sports and
energy
drinks
Build on a Increase presence
winning still in water
juice drink
portfolio
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24. Europe
Key Takeaways – Europe 2009
• Build from a 2008 plan that is working in a
challenging business environment
• Continue to drive growth profitably
• Extend presence in underdeveloped channels
• Systematic approach to transformation
• Invest to sustain growth while tightly
managing expenses
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25. Corporate Responsibility and
Sustainability (CRS)
Energy Water
Conservation/ Stewardship
Climate
Change
Sustainable Product Portfolio/
Packaging/ Well-Being
Recycling
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26. Diverse & Inclusive Culture
• Most talented, skilled team in the industry
• Proven ability to seize new ideas
• Driving new cost management initiatives forward
• Possess a driving will to win in the marketplace
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27. Agenda
120-Day Initiative
North America – Restoring Growth
Europe – Delivering Growth
Financial Overview
Summary
27
28. Outlook for 2008*
GROWTH RATES
North America
Volume decline low single-digits
Price per case mid single-digits
Cost per case high single-digits
Europe
Volume low single-digits
Price per case low single-digits
Cost per case low single-digits
Full Year Earnings Per Share $1.28 to $1.31
28 * Excludes items impacting comparability
29. Commodities
• YOY growth has not been in-line with
historical expectations of 2% to 3%
• Volatility has increased
• Recent declines will
be weighted to 2H09
• Continued focus on
using less and
recycling more
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30. Debt / Liquidity
• Cash flow and capital resources cover
funding needs
– Raised ~$500M in commercial paper in 4Q
– Raised $1B in term debt in 4Q
– Revolving 5 year credit facility of $2.5 billion
• Year end cash balance will be ~$400M
• ~$400M maturing in 1H09
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31. Other Key Financial Considerations
• Capital spend
• Free cash flow
• Foreign currency headwinds
• Capital structure / share repurchase
• Pension
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32. Outlook for 2009*
NORTH AMERICA EUROPE
Growth Rates Growth Rates
Revenue Revenue
mid single-digits mid single-digits
Cost per Case approximately 10% Cost per Case low single-digits
CCE Growth Rates
Revenue Growth mid single-digits
EPS Growth mid single-digits
Free Cash Flow > $650 million
32 * Currency neutral and excludes items impacting comparability