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1March 2005
Mr Terry DavisManaging Director
Citigroup Australia and New Zealand Investment Conference
Thursday, 10 March 2005
2March 2005
Coca-Cola Amatil – Australia’s Best Performing Beverage Company
• 6 Countries• 280 million potential
consumers• 750,000 active customers• 34 beverage bottling plants• 16,800 employees
59%
79%65%
15%
16%
12%
16%
10% 1%17%
6%4%
Australia OceaniaSouth Korea Indonesia
Revenue$3.4bn
EBIT$518m
Capital Employed
$4.7bn
2004
3March 2005
Outstanding Progress Since 2001
Market capitalisation increased by approx $2 billion
ROCE improved from 7.3% to 11.3%
Total shareholder returns increased by 14.4% CAGR
Net profit, ongoing increased by 17.6% CAGR
EBIT increased by 12% CAGR
EBIT margin improved by 3.4 pts
Earnings per share increased by 22.5% CAGR
4March 2005
strong$236.6mFree Cash Flow
increased by 1.1 percentage points
11.3%ROCE
increased by 1 percentage point
15.0%EBIT margin
increased by 10.1%A$518mEBIT
CCA Group – 2004Net profit (pre sign. items) $278m (up 16.4%)
2004 – Fourth Consecutive Year of Double Digit Earnings Growth
5March 2005
Dividends Have Doubled in Last Three Years
28c
23c
18.5c
14c12c
0
5
10
15
20
25
30
2000 2001 2002 2003 2004
Target Dividend Payout Ratio70% to 80% of net profit
Dividends increased by 133% over 4 years
6March 2005
CCA GroupEBIT $518m (up 10.2%)
EBIT margin 15.0% (up 1 point)
Australia 14.4% - outstanding EBIT growth(incl. Neverfail)
Oceania 10.0% - solid EBIT, led by NZ and improved PNG
Indonesia 7.2% - return to earnings growth
South Korea $4m - consumer confidence impacting results and restructuring continuing
Strong Group Performance Continues in 2004
EBIT
7March 2005
Non-Carbonated Beverage Growth Continues to Accelerate
95%
5%
80%
20%
Carbonated soft drinks
Non-carbonated beverages
CCA in 2001 CCA Today
8March 2005
Bolt-On Acquisitions Strengthen CCA’s Market Position
• $342 million invested in bolt-on acquisitions (excluding SPC Ardmona)
• $330 million received from non-core asset sales
• Northern Territory Coca-Cola Licence
• Crusta Juice• Quirks Refrigeration
• Peat’s Ridge• Pacific Beverages• Neverfail• Rio Beverages
9March 2005
CCA - A History of Leading Change Ahead of Consumer Trends…
CCA Australia
1982
Introduction of diet Coke
1986 1987 1993 1994
Introduction of 300ml Buddy
bottle
Introduction of Mt. Franklin
Introduction of Powerade sports drinks
Introduction of small PET packaging
2001 2002 2002 20042003
Acquisition of Neverfail
20% of sales in non-
carbonated beverages
Introduction of Fridge Pack
Introduction of diet Coke with lemon
Introduction of Vanilla
Coke
2002 2003
Acquisition of Rio Beverages
Introduction of diet Vanilla
Coke
10March 2005
CCA Continues to Drive Brand Leadership in Australia with 17 out of the Top 20 Products
Source: ACNeilsen – 2004 Convenience ReportCCA Product
Other
0 2 4 6 8 10 12 14 16 18
COCA-COLA SGR 600 ML PET
COCA-COLA SGR 2 L PET
COCA-COLA SGR 1.25 L PET
COCA-COLA SGR 390 ML PET
COCA-COLA SGR 375 ML CAN
DIET COKE DIET 600 ML PET
COCA-COLA SGR 1.5 L PET
COCA-COLA BONUS SGR 2 X 1.25 L PET
VANILLA COKE SGR 600 ML PET
PEPSI MAX PEPSI DIET 600 ML PET
DIET COKE DIET 390 ML PET
SOLO LMN SGR 600 ML PET
SPRITE SGR 600 ML PET
DIET COKE DIET 375 ML CAN
DIET COKE DIET 2 L PET
FANTA ORNG SGR 600 ML PET
LIFT SGR 600 ML PET
DIET COKE VANILLA DIET 600 ML PET
SOLO LMN SGR 1.25 L PET
COCA-COLA SGR 24 X 375 ML CAN
National Value % Share
11March 2005
Mexico US
German
y
Great B
ritan
Spain
Austra
lia
New Zea
land
Japa
n
Philipp
ines
South
Korea
Indon
esia
Growing Per Capita Consumption Continues to be CCA’s Number One Priority
200 litres 135
litres75
litres 18 litres
400litres
Per Capita Consumption -Non-Alcoholic Ready-To-Drink
12March 2005
Delivering Higher Profit to Our Customers and to CCA through Execution of Five Main Pillars
• Product and package innovation • Non-carbonated beverage growth
• Cold drink equipment placements
• New outlet expansion
• Customer service improvement
13March 2005
CCA Continuing to Lead through Innovation
• CCA continues to be the market leader in product and packaging innovation
• In 2004, new products to market in Australia included:
• ‘Fanta Spider’• ‘Mount Franklin Lightly Sparkling’• ‘Powerade’ in squeezable pack• ‘Recharge By Sprite’
14March 2005
Growing Per Capita Water Consumption is a Key Priority for CCA
• Australia’s per capita consumption is only a quarter of Europe’s and half of the USA’s
Switzerl
and
United
Stat
es
United
King
dom
Italy
Belgium
Spain
German
y
Portug
al
Greece
Thail
and
Austra
liaArge
ntina
Brazil
Philipp
ines
Japa
n
China
South
Africa
Vietna
m
New Zea
land
SOURCE: Perrier Vittel S.A., Canadean
Annual bottled water consumption per capitaLitres
Fran
ce
Canad
a
Average
15March 2005
Water Growth Accelerating• Three out of the top five water brands in Australia are CCA’s, with
‘Mount Franklin’ a strong number one, followed by ‘pump’ and ‘Neverfail’
1999 2000 2001 2002 2003 2004
CCA - Water Volume Growth in Australia
21%18%
16%
60%
56%
16March 2005
Cold Drink Equipment Placement Accelerating
Cold Drink Equipment Invested by CCA:• 2001 - $10 million• 2003 - $60 million
Australian Cooler Placements
• 2004 - $75 million• 2005 - $100 million
% of Total 22% 4% 7% 9% 9% 2% 2% 9% 2% 4% 15% 15%
Prior 1993
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
17March 2005
Growing our Customer Base through Outlet Expansion
Potential Customer Universe
2004 Growth0.3m outlets >5%
0.1m outlets 2%
1.4m outlets 15%
0.5m outlets 30%
0% 20% 40% 60% 80% 100%
South Korea
Indonesia
New Zealand
Australia
Direct Customers Potential
100k
20k
400k
100k
18March 2005
Faultless Customer Service Execution
• Automated Distribution Centre • Delivering improved customer service • Generating annual cost savings of approximately $7
million• Planning construction of automated distribution facilities
in NSW and Auckland, due for completion by early 2008
• Centralised Call Centres in Australia and New Zealand
• Re-focus sales force from order taking to conceptual selling
19March 2005
Australia and OceaniaContinue the Momentum
• Australia and New Zealand, with 14% and 21% EBIT growth in 2004, respectively
• Leading markets in the global Coca-Cola system• New Zealand a test market for new initiatives• Australia with over 60% share of CSD market• New Zealand with 80% share of CSD market
KEY DRIVERS
• Continuing the momentum through driving and executing the five main pillars
20March 2005
Indonesia – 2004: Returns to Growth with EBIT increase of 7.2%
• More stable economy post Presidential Elections• Carbonated soft drinks returned to growth in H2
2004• Tsunami tragedy impacted January 2005
consumer spending
KEY DRIVERS
• Balancing affordability of products with improving financial returns and building a sustainable soft drink culture
21March 2005
South Korea -2004: Improving the Fundamentals
• New Outlet Expansion – 30,000 net new outlets• Model Markets – 46 areas converted & 10-15% volume uplift
per outlet• Cold Drink Placements – extra 15,000 coolers• Consumer Marketing – significant increase in 2005 spend
KEY DRIVERS
• Development of sales force capabilities
• Upgraded sales execution
• Increased brand marketing investment & execution
22March 2005
Source: Korea National Statistical Office
80
90
100
110
120
Dec-
01Fe
b-02
Apr-0
2Ju
n-02
Aug-
02O
ct-02
Dec-
02Fe
b-03
Apr-0
3Ju
n-03
Aug-
03O
ct-03
Dec-
03Fe
b-04
Apr-0
4Ju
n-04
Aug-
04O
ct-04
Dec-
04
South Korea - Consumer Confidence Uplift the Key to Consumption Growth
Optimistic
Pessimistic
Jan-
05
23March 2005
Acquisition of the Brand Leader in Emerging High Growth Category
29%Baked Beans & Spaghetti
111%Tinned Tomatoes
112%Henry Jones Spreads
160%PackagedFruit
SPC Ardmona Market Position
Share of SPC Ardmona Revenue
Deciduous Fruit Category•6% CAGR since ‘02•8% growth in ‘04
Fruit Snacks Category•6.6% CAGR for last ten years•6.4% growth in ‘04
Source: AC Nielsen – Scan Track. Excludes food service
SPC Ardmona 2004 EBIT = $45m(underlying business)
24March 2005
SPCA Integration Plan to be Finalised by June 2005
Strategic Business Review – SPC Ardmona andCCA’s existing beverage business
• Key areas to be assessed• Product & packaging innovation• Channel development• Export sales development• Key synergies with CCA• Manufacturing infrastructure
25March 2005
Key Factors Driving 2005 Performance
Aim to continue Double-Digit Net Profit Growth in 2005
• Momentum in Australia and New Zealand needs to continue
• Increase in COGS by 5% due to higher raw material costs – to be recovered by price increases
• Earnings growth greater in H2 2005
• Indonesian consumer spending impacted by Tsunami but LGT removal a positive
• South Korean consumer confidence uplift remains the key
• SPC Ardmona synergies commence in H2 2005
26March 2005
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