Presentación de PowerPointbalanced portfolio 3 CAGR 14%. Our commitment pursue opportunities to...
Transcript of Presentación de PowerPointbalanced portfolio 3 CAGR 14%. Our commitment pursue opportunities to...
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Corporate Presentation
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$10
$11
$13 $14
$17
$20
2011 2012 2013 2014 2015 2016
$51 $56
$60 $62
$76
$94
2011 2012 2013 2014 2015 2016
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Delivering solid and consistent results
MXP$ billion
EBITDASales
< $5 $5
$6
$7
$8
$9
2011 2012 2013 2014 2015 2016
Net Income
Consolidated Results
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99%
1%
2002
Mxp$13 billionMexico Beverages
Exports and Vending Mxp$ 94 billion
Mexico Ecuador Argentina Comp. Bus.Peru
7.2x
10%12%
52%
2016
16%
10%
Complementary
Business
Exports
Rapid and profitable growth achieving a
balanced portfolio
3
CAGR
14%
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Our commitment pursue opportunities to create value for our shareholders
4Complementary
Business
CSD’s
Stills
New sparkling
beverage franchises
Emerging still categories
+ Value added dairy
Snacks, and vending
machines
CSDs
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An extensive brand portfolio to satisfy
every consumption occasion
50 Brands+
SKUs1,200+201628Brands+
SKUs128+2006
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Macroeconomics and climatic changes are not
our main concern… our priority is execution
6
60%
E F M A M J J A S O N D
Key SKU’s Coverage
(Unforgivables)
75%
M A M J J A S O N D
Execution Index
3% 1%
E F M A M J J A S O N
Customers without visit
4%
2%
E F M A M J J A S O N
Customers without order
17%
78%
Segmentation
RGM
RTM
Fundamentals
Market tools
Sales School
Sales School Innovation
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Mexico Ecuador
Argentina
Peru
Arca Continental: beverage operations
Start date: 1926
• Sales volume (MUC) 1,168
• % KO volume 30%
• Population served (MM) 30
Start date: 2008
• Sales volume (MUC) 130
• % of KO volume 21%
• Population Served (MM) 9
Start date: 2015
• Sales volume (MUC) 300
• % of KO volume 100%
• Population served (MM) 32
Start date: 2010
• Sales volume (MUC) 142
• % of KO volume 100%
• Population Served (MM) 16
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Outstanding operational results in Mexico
1,0381,078
1,168
2014 2015 2016
Volume(MUC)
• Outstanding volume increase in a market
with high per capita consumption and strong
market share
• Gained in NARTD volume and value share
• Sales increased 14% in 2016
• Command #1 or #2 market leadership in
most stills categories
• Received top awards from key retail
customers
• ACT commercial model deployed across of
the organization
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MX$5
MX$30
$5 $10 $13 $20$5 $25
Low elasticity SKU’sProtect affordability
(Multi-serve & Returnable)
Keep magic prices Leverage on diet & single serve
presentations
600 PET
3.0 NR2.0
RP
12 OzVR
RGM strategy: sustain profitability & affordability
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66% Non
Returnable
34% Returnable
12% On Premise1%
Vending
58% Traditional
14%C-Stores
8%Other
7%S-Markets 12%
Flavors
6% Stills
60% Colas
17%Jug
5%Water
48% Single-serve
52% Multi-serve
Channel Category
Format
Package
Mexico
10*As of 2016
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Expanding Topo Chico across our territories
generating incremental sales
• Expansion of Topo Chico brand to a territories in Mexico
• Leading brand with close to 20% growth in 2016 with premium price in the mineral water category
• We will capitalize on the strong brand equity developed in the north of Mexico throughout its 122-year history
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Well-prepared to face a challenging 2017 in Mexico
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• Drive revenue growth management through an adequate pricing strategy
• Disciplined hedging strategy with a vertically integrated business
• Continue improving our market tools and capabilities
• Strengthen production, commercial and distribution capabilities
• Enhance productivity delivering SG&A efficiencies
Maintain Leadership in
NARTD
Sustain volume growth
Protect profitability
Goals
Strategic Priorities
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Investing in core capabilities while increasing profitability in Argentina
Achievements 2016
• RGM initiatives enable us to compensate for high inflation rates
• Maintained profitability despite macroeconomic volatility
• Gained market share across all NARTD categories
Initiatives for 2017
• Continue expanding point-of-sale execution capabilities through ACT commercial model
• Focus on returnable packages and increase cooler coverage
• Strengthen vertical integration of Famaillá sugar mill to optimize our sweetener cost 22
11
20
2009 2016
48
60
2009 2016
EBITDA/Sales
(%)
Market Share
(%)
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Argentina
55% Non
Returnable
45% Returnable
2% On Premise
55% Traditional
1%C-Stores
26%Other
16%S-Markets
26% Flavors
4%Stills
61% Colas
9%Water
8%Single-serve
92% Multi-serve
Channel Category
Format
Package14
*As of 2016
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Continue deploying AC’s core pillars and best practices in Ecuador
17
19
2010 2016
24
46
2010 2016
15
EBITDA/Sales
(%)
Cooler
Coverage
(%)
Achievements 2016
• Drove innovation in portfolio by reformulating products to offer more low-calorie or zero calorie options (first in the world)
• Focused on affordability products in key entry packages
• Leveraged distribution centers and expanded cross-selling opportunities between beverages and snacks
Initiatives for 2017
• Generate cost savings by centralizing production capabilities in new Tonicorp’s Aurora plant
• Invest in almost 17 thousands new coolers to capitalize the volume recovery
• Expand RTM model as part of the ACT model deployment
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Ecuador
79% Non
Returnable
21% Returnable
12% On Premise
64% Traditional
2%C-Stores
14%Other
8%S-Markets
30% Flavors
10%Stills
50% Colas
10%Water
32% Single-serve
68% Multi-serve
Channel Category
Format
Package
16*As of 2016
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Large market with attractive macroeconomic and demographic dynamics in Peru
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Initiatives for 2017
• Optimize warehouse infrastructure while increasing own
sales force and distribution capabilities
• Improve affordability via returnable presentations and
drive growth in the non-calorie beverages category
• Accelerate innovation in still beverages
• Expanded EBITDA margin 236 bps
• Delivered annualized running rate synergies of US $40
million, 60% above the target originally set
• Reduced debt and exposure to foreign exchange from
our US dollar-denominated debt by 70%
Achievements 2016
18
21
2015 2016
25
40
2015E 2016
EBITDA/Sales
(%)
Synergies RR
(US$ MM)
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Peru
73% Non-
Returnable
27% Returnable
8% On Premise
70% Traditional
2%C-Stores
10%Other
9%S-Markets
7% Stills
23% CSDs
4%Jug
18%Water
40% Single-serve
60% Multi-serve
Channel Category
Format
Package
18*As of 2016
48% Flavors
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Continue accelerating growth and gaining scale in complementary business
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632
6,439
2007 2016
Snack Sales(MM MXP)
• Our Vending machine business grew volume, sales and transactions, supported by modern IT systems
• Expanded Vending machine presence in Peru by acquiring a leading company with over 6,000 units across the country
• Strengthening production capabilities with the opening of new facilities
• Improved point-of-sale execution, while expanding market share
• Outstanding year for our exports business, with double-digit sales increase in US dollars
• Topo Chico posted record 22% volume growth, driven by new distribution agreements with major retailers
680
2,022
2007 2016
Vending Sales
(MM MXP)
26
69
2007 2016
Exports Sales
(MM USD)
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Solid Balance Sheet and strong credit profile
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• After Lindley’s transaction,
deleveraged from 1.9x to 1.3x
by year end
• Reduced debt exposure from
$1.2 billion in 2015 to $150
million as of January 2017
• 70% of debt at a fixed interest
rate
• Highest credit rating among
Mexican companies, Global “A”
by Fitch and “A2” by Moody’s
1.9
1.3
2015 2016
Net Debt / EBITDA
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Consistent value creation
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$16
$48
$221
$12 $60$75
$18$239
Market Cap ArcaDec '02
Market Cap ArcaDec '10
Dividend'02 - '10
Total ValueDec '10
Market CapArca+Contal
Dec '10
Market CapMar '17
Dividend'11 - '16
Total ValueMar '17
(MXP$ billion) 219%
+275%
Contal
Arca$48
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AC to join the US Coca-Cola System
22
• Approximate value of CCR’s stake in AC Bebidas: US $2.7 billion
• Sales volume: 400 MUC
• Estimated annual sales in 2017: US ~$2.35 billion
• EBITDA margin: ~13.5%
• 9 production facilities, 34 distribution centers and over 7,500 associates
• Transformational and highly value accretive transaction, with an implied valuation multiple below AC currently
• Transaction expected to close in 2Q17 CCSWB franchise
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Corporate Structure AC
23
CCSWB
80%20%
EcuadorArgentina
AC Beverages AC Comp. Bus.
Mexico Peru
100%
57%100%
100% 100%
100%
CCR
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Coca-Cola Southwest: One of the top KO bottlers in the US
24
• The US Southwest territory is one of the most relevant in the US Coca-Cola System in terms of size, market dynamics and growth potential
• Attractive non-alcoholic beverages retail market and leading position in NARTD
• Young population: 60% Hispanics and 45% of non-Hispanics under 35 years old
• AC will be able to deploy strategic core pillars: ACT commercial practices, Operational Excellence and Supply Chain Management
• Potential to expand snacks business presence in the US and increase sales of Topo Chico mineral water and Coca-Cola “Nostalgia”
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32%
31%
10%
9%
11%7%
Increased geographic footprint and diversification
25
Pro-Forma
2017
Mxp$152 billion** Pro-forma with 12 months of CCSWB
• Balanced portfolio of emerging
and developed markets
• Over 43% of our revenues in US
dollars
• Continue to further accelerate
growth in the Fast-Moving
Consumer Products industry
Complementary Business
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1325
56
100
>200
2002 2008 2012 2017 2022
SalesMXP$ billion
In 2017 we will exceed our revenue target of $100 billion pesos set 5 years ago
26
2x
2x
2x
2x