barclays back-to-school consumer conference · optimizing our business 19 improve our operating...

Barclays Back-To-School Consumer Conference

John F. Brock CHAIRMAN & CEO

Bill Douglas EVP & CFO

Included in this presentation are forward-looking

management comments and other statements that

reflect management’s current outlook for future periods.

Forward-Looking Statements

2

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 presentation should be read in

conjunction with the risks and uncertainties discussed in our filings with the

Securities and Exchange Commission (“SEC”), including our Form 10-K for

the year ended December 31, 2012 and other SEC filings.cc

Agenda

3

Solid Foundation

Opportunity For Growth

Shareowner Value

CRS and Key Takeaways

CCE at a Glance

4

$8.1 billion net sales

30 billion servings

annually to 170 million consumers

17 production facilities

~13,000 employees

EUROPE

10-K 2012

Vision and Global Operating Framework

5

Drive consistent long-term profitable growth

Be the best beverage sales and customer

service company

#1 or strong #2

in every

category we

compete

Our customers’

most valued

supplier

A winning and

inclusive culture Strategic Priorities

Vision

Solid Fundamentals

6

Commitment to driving shareowner value

NARTD: retail value of ~$65B with a 3 year CAGR of +6% Large And Growing

Category1

#1 in value & volume share Successful Position2

Meeting or exceeding our long-term targets on a 3 & 5

year compounded annual basis

Track Record

Of Growth3

1. Non-alcoholic ready-to-drink (NARTD) AC Nielsen FY12 & Canadean FY11; excludes tap/bulk water & dairy; CAGR based on AC Nielsen

2. AC Nielsen FY12

3. Comparable CAGRS through 2012; base years represent Legacy CCE EU operating segment except EPS which is total company; 2008-

2011 includes segment remeasurement

Agenda

7

Solid Foundation

Opportunity For Growth

Shareowner Value

CRS and Key Takeaways

$65B

~$115B

~$50

CCE

Territories…

...Indexed

to US

Opportunity

Market & Category Growth Opportunity

8

Opportunity to grow NARTD category

and per capita consumption

~$40B

~$25B

~$95B

$160B Beverage Market1 (Retail Value)

NARTD (Retail Value)

NARTD –

Non-measured

NARTD –

Measured2

Hot Tea/Coffee, All Alcohol, Dilutables

1. Canadean FY11 (most recent); excludes tap/bulk water & dairy

2. AC Nielsen FY12

AC Nielsen FY12; Canadean FY11 (most recent);

CCE Territoriy indexed based on US per capita consumption

37%

11%

46%

86%

NARTD Value CCE Volume

Successful Position & Historical Growth

9

Category & CCE Mix

1 2

Sparkling Still Water

3%

A proven track record of growth and focused on

high value segments that drive favorable profit mix

1. AC Nielsen FY12

2. 10-K 2012

CCE Per Capita Consumption

CCE internal reports; TCCC beverages

based on eight fluid ounce servings

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20

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07

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11

20

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17%

Successful Brand Portfolio

10

Coca-Cola

Trademark

68%

MIX

Sparkling

Flavors

And Energy

18%

MIX Stills

14%

MIX

10-K2012; rounded

Successful Brands Drive Category Growth

11

CCE grew both volume and value share across

entire category and in key segments

NARTD +3.4% +4.3% +0.2

Sparkling w/

Energy +4.1% +4.9% +0.4

Colas +3.8% +4.8% +0.7

AC Nielsen July YTD 2013; rounded

1H13 Category

& Segments Category Value

Growth

CCE Value

Growth

CCE Value Share

Gain (bps)

11

5 consecutive

years of

double-digit

volume growth

Sparkling – Coca-Cola Trademark

12

#1 in volume and value cola

share in every territory

Package Innovation

Brand Innovation & Expansion

► Coke Zero Cherry

► Vanilla Coke

► Multi-serve: 1.75 ltr

► Single-serve: 375 ml & 250 ml

► Norway: new package flexibility

CCE internal reports

AC Nielsen

Sparkling – Flavors & Energy

13

Package

Innovation

Fanta 1 ltr & Fridgepack

Norway: variety of new packages

Relentless 250 ml & 500 ml can

Brand Innovation

& Expansion

Sprite with Stevia

Fanta: Grape, Peach Apricot, Tropical

Burn Sugar Free

Stills

14

Package

Innovation

Oasis 2 ltr

Nestea can & 1 ltr

Minute Maid elopak

Brand Innovation

& Expansion

Oasis Mango & Lemonade

vitaminwater Sunshine

Nestea Lemon Stevia

2013 Marketing Calendar

15

2013 GROWTH WILL BE DRIVEN BY

‘CORE’ BRANDS

Share A Coke

Connect with target

shoppers and consumers

Reinforce engagement

and brand relevance

Motivate purchase

Facilitate recruitment

Drive excitement

16

Share A Coke - Video

17

Supply Chain Excellence

18

Customer Centric

Supply Chain

Pan European scale with global procurement capability

Flexible & efficient logistics/distribution system

Cost efficient production & expandable infrastructure

Responsible & sustainable

Optimizing Our Business

19

Improve our operating model for driving

sustainable future growth

Business Transformation Program

Streamline and reduce back office cost structure

Standardized sales and marketing into a channel-focused organization

Improve efficiency and effectiveness

New Packaging Model in Norway

20

Unlocking value by expanding package offerings

to better meet consumer & customer needs

FROM TO

Two primary

packages that

are refillable

Package flexibility

that is recyclable

and non-refillable

New Delivery Model in Norway

21

FROM TO

Direct Store

Delivery

Indirect

Delivery

Value for customers, consumers, and CCE

and a positive environmental impact

Large geography and disbursed population results in an inefficient delivery system

Higher utilization of assets

More efficient logistics

Lower cost structure

Our People

22

Attract, develop, and retain a highly talented

and diverse workforce

Experienced

management team

Solid bench strength

Investing in capabilities

Supply chain pic should be bigger and in the more prominent position vs. the sales pic; round pic and square pic look funky together; is there a way to easily change the shirt of the sales

guy to be red color (low priority)?

Agenda

23

Solid Foundation

Opportunity For Growth

Shareowner Value

CRS and Key Takeaways

CONSISTENT earnings in line with our

long-term objectives

MAXIMIZE free cash flow (FCF) and maintain

financial flexibility

INCREASE return on invested capital and drive shareowner value

Financial Priorities

24

Drive consistent long-term

profitable growth

Financial Approach

25

Achieve long-term targets while investing in CapEx prudently

Reach and maintain target leverage range

Invest in high return M&A opportunities and/or

return cash to shareowners

Drive Cash From Operations

Optimize Capital Structure

Opportunistically Invest and/or Return Cash To Shareowners

Focus on total shareowner return

Net Sales growth 4% – 6%

Operating Income growth 6% – 8%

Drive Cash from Operations

26

Comparable & Currency Neutral

Long-Term Targets

Long-term target 4.0% - 4.5%

of net sales

2/3 on growth & 1/3 on

maintenance

Long-term target of ≥ 20 bps

annual improvement

Focus on operating growth, high

return initiatives, and managing

working capital

CapEx Return On Invested Capital (ROIC)

Investing in long-term growth

1.6x2 1.7x 2.0x

2010 2011 2012 2013 est.

2.5 to

3.0x

WACD ~3%

Balanced debt maturities

with all years near or

below annual Free Cash

Flow

Optimize Capital Structure

27

We expect to continue to operate within our

long-term target range of 2.5-3.0x

1. 10-K; Net Debt is total 3rd party debt less cash & cash equivalents;

comparable EBITDA

2. Pro forma FY10 assumes D&A of low to mid $300M

Debt Profile Net Debt1 To EBITDA

Internal reports

Invest in High Return M&A Opportunities

28

Opportunities evaluated against alternatives,

including return of cash to shareowners

Cash flow of existing business

Incremental value

creation by CCE

Incremental value to

CCE’s core business

Risk, cost, and timeframe

Evaluation Criteria

Core business growth

Adjacent territories and

adjacent categories

Other territories

New business

Opportunities

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

03 04 05 06 07 08 09 10 11 12 13E

Cash Returned To Shareowners ($B)

2010 2011 2012 2013 est.

$3.6

$1.0 $1.0

$1.2

Return Cash to Shareowners

% of

Mkt Cap

29

Dividends

Other

Share Repurchase

Dividends

10-K, YE market cap (2013E as of 8/19/13); internal reports; rounded

10-K, internal reports; rounded

Focus on total shareowner return with almost

$7B of cash returned after the formation of new

CCE through 2013 est.

43% 12% 11% 12%

2013 RATE

INCREASE OF 25%

Future Cash Availability

30

CCE internal reports

Free Cash Flow

Annual Cash Available As % Of Market Capitalization

Non-recurring

cash costs

Organic growth

while maintaining

debt leverage Annual cash

available

LONG-TERM GROWTH

Opportunity for ~9 - 10% of our current market

cap annually for M&A and/or shareowners

2013 est.

+ + =

+

~5%

~9 -10% ~2%

~2 - 3%

2013 Outlook

31

Near term, we expect business results and share repurchase to drive EPS growth above our long-term objective

Net Sales growth LSD

Operating Income growth LSD - MSD

Earnings Per Share $2.45 - $2.50

Net Sales & Operating Income growth are comparable and currency neutral; EPS is comparable

2013 Growth Guidance

Key Financial Takeaways

32

Focus on consistent long-term profitable growth

and total shareowner return

Realistic about challenging environment

History of and commitment to managing the levers of our

business to deliver growth

Favorable and flexible capital structure

Long-term financial objectives are challenging, yet achievable

Agenda

33

Solid Foundation

Opportunity For Growth

Shareowner Value

CRS and Key Takeaways

CRS

34

Significant Progress: Carbon Reduction,

Water Usage And Packaging Recycling

2012 Key Highlights

15% carbon footprint reduction

Lowest ever water usage ratio

15M bottles recycled at the London

2012 Olympic Games (6 week from

waste to shelf)

Announced residential recycling

behavioral study with Exeter University

Community investment, including

active and healthy living programs

Expanded portfolio of low and no-

calorie offerings

All new cooler placements

are HFC-free

Business Environment Risks

35

Though optimistic about our long-term

outlook, we are realistic about key

business environment risks

Challenging macroeconomic environment

Volatile commodity costs

Increasing focus on health and wellbeing

Risk of increased taxes

Key Takeaways

36

CCE is executing our strategic priorities

History of solid growth

Operating environment remains challenging

Financial priorities focused on long-term profitable growth

Track record of and focus on delivering shareowner value

Barclays Back-To-School Consumer Conference

John F. Brock CHAIRMAN & CEO

Bill Douglas EVP & CFO