Keurig green mountain template 4x3_5_11_15 (1)

USING FOR AN EXTERNAL SPEAKING EVENT (I.E. CONFERENCE, COLLEGE PRESENTATION)? REMEMBER TO PROVIDE CORPORATE COMMUNICATIONS/PR ([email protected]) WITH THE BELOW INFORMATION.

1

CONFIDENTIAL: FOR INTERNAL USE ONLY

a)Speaker’s Name/Titleb)Event Title/Description/Speaking topicc)Date/Time/Location of Eventd)Audiencee)Purpose/Objectives of Keurig Green Mountain representationf)Speech and/or Outline of intended comments/copy of Presentationg)Media coverage expected? If so, please provide detailsh)Approval by direct supervisor in attached e-mail

All Keurig Green Mountain employees’ public appearances representing the company must be reviewed

and approved prior to commitment to the opportunity.

WHO WE ARE TEMPLATE – FOR EMPLOYEE USE

2

Updated: May 11, 2015

AGENDA ITEM 1

AGENDA ITEM 2

AGENDA ITEM 3

AGENDA ITEM 4

Technology Company?

Appliance Company?

WHO ARE WE?

Beverage Company?

Coffee Company?

We Are

An innovative

technology-driven

values-based

personal beverage-system company.

OUR UNIQUE COMBINATION OF BEVERAGE AND TECHNOLOGY EXPERTISE

Socially Responsible Premium Coffee

Sustainability FocusedEnlightened CapitalismWin-Win Partnerships

Advanced Food ScienceProgressive Blending

& RoastingBrewing A Better World

OUR UNIQUE COMBINATION OF BEVERAGE AND TECHNOLOGY EXPERTISE

EngineersSystems Design & Integration

Materials ScienceHeat Transfer

Injection DosingAdvanced Electronics

Fluid Dynamics Continuous Innovation

COMING TOGETHER TO CREATE…

The ultimate at-home coffee experience

An accelerated category

Significant value for consumers, customers, & shareholders

A TECHNOLOGY COMPANY PREMIUMIZING BEVERAGES

*Non-GAAP EPS is a Non-GAAP financial measure.

*

50070~

NORTH AMERICAN ROOTS

9 PRODUCTION FACILITIES

2 R&D FACILITIES

400 ENGINEERS & SCIENTISTS1

6,600 + EMPLOYEES

436 PATENTS ISSUED GLOBALLY1

387 PATENT APPLICATIONS PENDING GLOBALLY1

1 end of year fiscal year 2014

GROWING GLOBAL REACH

12

BREWER SOURCINGOFFICES & MANUFACTURING BEVERAGE SOURCING

A UNIFIED DIRECTION…

PURPOSE: Create the ultimate beverage experience in every life we touch, from source to cup – transforming the way the world understands business.

MISSION: A Keurig® brewer on every counter and a beverage for every occasion.

VISION: Become the world’s leading personal beverage systems company.

Our boundaryless approach to collaboration creates benefits for all.

We Partner for Mutual Success

With courage and curiosity, we are shaping the future by redefining the consumer experience.

We Innovate with Passion

Our team sets ambitious goals and meets each challenge with unified purpose and character.

We Play to Win

We use the power of business to make the world a better place.

We Brew a Better World

SHARED VALUES…

GROWTH

OPERATIONAL EXCELLENCE TALENT & CULTURE

OUR DRIVING BUSINESS OBJECTIVES

16

Intuitive simplicity

Less coffee waste

Ultra-convenient

Vast brand selection

Freshest taste… every time

FOUNDATION OF KEURIG’S SUCCESS

KEURIG® IS AN ADVANCED, PERSONAL BEVERAGE SYSTEM

17

A network system effect

A brand accelerator

A premium experience brought into the home

An enabler to understand the demand signal in home

An in-home beverage creation system

A POWERFUL PORTFOLIO OF BRANDS

OUR LATEST INNOVATIONS

19

Keurig® 2.0 Keurig® KOLD™

Brews nearly 500 beverages from 70+ Keurig® owned and licensed brands

Brews all Keurig® K-Cup®, Vue®, K-Mug™, and K-Carafe™ pods

First Keurig® brewer to brew a single cup or carafe of coffee

Uses proprietary technology to identify and perfectly brew Keurig® pods

21

Carbonation with no CO2 canister

Perfect dosing & one touch simplicity

Beverage delivered cold

Vast brand selection

Sustainable

Freshly prepared carbonated, sparkling, and still beverages

Launching Fall 2015

APPLYING SUSTAINABILITY TO ALL THAT WE DO…

Bringing improved sustainability to our products, packaging, supply base, manufacturing plants, and employees.

Spending where there is dual benefit:

• Social & Company• Environmental &

Company

Improving ourselves as a priority and designing with sustainability in mind.

OUR COMPETITIVE EDGE

CONFIDENTIAL: FOR

THRIVING BRANDS WITH AN OPEN ARCHITECTURE

UNIQUE BEVERAGE & APPLIANCE MODEL

MUTUALLY BENEFICIAL PARTNERSHIP CAPABILITY

HOLISTIC SYSTEM DESIGN & EXECUTION

TALENT, VALUES, & CULTURE

THANK YOU!

24

APPENDIX:FINANCES

25CONFIDENTIAL: FOR INTERNAL USE ONLY

Revenue Growth

Operating Margin2

Dividend Yield

8%

20%

Net Sales $4.7B

1%

KEURIG GREEN MOUNTAIN FISCAL YEAR 2014

26

BUILDING ON OUR STRONG SALES GROWTH

27

*

($ in millions)

5-year CAGR of 43% Excludes the 53rd week of FY2012 which added approximately $90.0 million in net sales; approximately $11.0 million (net of income taxes of $5.8 million) in net income; and, approximately $0.07 in diluted earnings per share in the fourth quarter and fiscal year 2012.

APPENDIX:OUR MODEL


OUR BUSINESS MODEL

Two primary growth axes

A Keurig® brewer on every counter and a beverage for every occasion

INST

ALLE

D B

ASE

OF

BREW

ERS

DAILY PODS PER BREWER

Volume, Revenue, Profit

29

WE SELF-GENERATE & BENEFIT FROM THE NETWORK EFFECT

30

= Keurig HouseholdsBoth brands and households representative only. Not actual numbers

WHEN THE SYSTEM GROWS EVERYONE GROWS

BEVERAGE SYSTEM

A New Gateway for Brands

31

APPENDIX:HOT OPPORTUNITY


KEURIG® SYSTEM BREWED COFFEE GROWTH

Keurig System Brewed Coffee

Energy Drinks

Bottled Water

Coffee Milk Canned Juice

Non Fruit

Drinks

Sports Drinks

Bottled Juices

CSD Aseptic Juices

Drink Mixes

20.4%

6.1% 5.3% 4.5% 4.3%3.2% 2.7%

1.5%

-0.5% -0.6%-2.0%

-3.0%

Total U.S. Multi Outlet Dollar % Change vs Year Ago

Leading the beverage category

33

Source: IRI Market Advantage Total U.S. Multi Outlet 52wks ending 12/28/14

SINGLE CUP COFFEE IS PROPELLING COFFEE CATEGORY $ GROWTHWhile all other segments soften

34

Total Coffee Single Cup Coffee Instant Coffee Ground Coffee Whole Bean Coffee

4.5%

25.8%

-2.9% -4.3%

-9.5%

Total U.S. Multi Outlet $ Pct Chg vs YAG


2011 2012 2013 2014 $-

$2,000

$4,000

$6,000

$8,000

$10,000

0%

10%

20%

30%

40%

$7,062 $7,937

$8,357 $8,731

12%

22%

30%

36%

Total U.S. Multi Outlet Coffee Dollar Sales (Billions)

Total U.S. Multi Outlet Coffee Dollar Sales (Billions)Single Cup Coffee Share of Total Coffee

SINGLE CUP SHARE OF COFFEE

35


DISRUPTIVE INNOVATION ADOPTION CYCLE

36

Early MajorityLate Majority

Early Adopters

InnovatorsLaggards

Early Market

2.5% 13.5% 34% 34% 16%

Mainstream Market

Keurig’s hot system is still in the early stages of development

THE KEURIG® BRAND IS POWERFUL

37

Supplier of the Year4

• 80% Brand Awareness1

• #1 Coffee maker in category dollar sales for 53 months running2

• Brand of the Year Single Serve Coffee Maker3

1 Sentient Brand Tracking Study. January 20152 NPD All Channels 3 2015 Harris Poll EquiTrend® Rankings 20154 for 2014 in association with Keurig 2.0 system launch

APPENDIX:COLD OPPORTUNITY


COLD BEVERAGES ARE 5X THE SIZE OF HOT BEVERAGESDollar share by major category in the U.S.

39

Coffee83%

Tea Bags13%

Hot Cocoa4%

Carbonated Beverages

36%

Bottled Water17%

Shelf-Stable Juice15%

Rfg Bev13%

Sports & Energy Drinks11%

RTD Tea/Coffee5%

All Other4%

Total Cold Beverage Sales* CY 2014: $50 billion +Total Hot Beverage Sales

CY 2014: $10 billion+

*excluding dairySource: IRI U.S. Multi Outlet 52wks ending 12/28/14

CARBONATION LEVELS

COLD PROBLEMS HIDDEN IN PLAIN SIGHT

TEMPERATURE

FRESHNESSFORM FACTOR

INFLUENCES TASTE

CHOICE IN HOME STORAGE

SHOPPABILITY

APPENDIX:MORE ON KEURIG® KOLD™


WILL OFFER BROAD COLD BEVERAGE PORTFOLIOBeloved partner brands – plus new Keurig-owned brands

OUR NEW OWNED BRANDS FOR KEURIG® KOLD™

43

APPENDIX:SUSTAINABILITY


Engage 1 million people in our supply chains to significantly improve their livelihoods includingwater security and climate resilience.

People impacted throughKeurig Green Mountain fundedpartner projects.

383.6K

100% of K-Cup® pods will be recyclable.

We are testing key design concepts for a K-Cup® pod that can be easily separated and readily recycled. We are investing $5 million over five years in recycling solutions via the Closed Loop Fund.

Source 100% of primary agricultural and manufactured products according to established Keurig Green Mountain responsible sourcing guidelines.

Coffee traceable to source.64% Responsible Sourcing Supplier

Guidelines established and published.

Reduce life-cycle greenhouse gas emissions of brewed beverages by 25% vs. 2012 baseline.

Coffee roasting energy reduction in fiscal 2014.4% Corporate GHG footprint

complete.

Achieve zero waste-to-landfill at our owned and operated manufacturing and distribution facilities.

Fiscal 2014 manufacturing waste diversion rate (up from 73% in fiscal 2013).

86%

Engage 100% of employees to understand our vision and values and present opportunities that allow them to contribute to our targets.

Surveyed employees who affirmed they are “able to bring our Company’s values to life in my everyday work.”

72%

Balance the water used in our 2020 brewed beverage volume of all our beverages, ounce for ounce.

Project portfolio for balance target in development.

2020 SUSTAINABILITY TARGETS

Water Stewardship

Our water stewardship approach aims to: optimize resources through efficient use of water in our own operations balance, ounce for ounce, the water used in all our beverages through projects that restore an equal volume of water for natural and community uses; and connect people to clean water sources.

PROGRESS TOWARDS A RECYCLABLE K-CUP® POD

47

Keurig green mountain template 4x3_5_11_15 (1)

Documents

Transcript of Keurig green mountain template 4x3_5_11_15 (1)