Coca Cola Ecek FY10 Results Webcast_nw

8/6/2019 Coca Cola Ecek FY10 Results Webcast_nw

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FY10 ResultsMarch 29, 2011Istanbul

Michael A. ONeill CEON. Orhun Kstem CFO


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Forward-Looking StatementsThis presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola

eceks (CCI)plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-

looking statements can generally be identified by the use of words such as may, will, expect, intend, estimate, anticipate, plan, target, believe or other words of similar meaning. These forward-looking statements reflect thecurrent views and assumptions of management and are inherently subject to significant business, economic and other risks

and uncertainties. Although management believes the expectations reflected in the forward-looking statements are

reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that

could cause actual results to differ materially from CCIs expectations include, without limitation: changes in CCIs relationship with The Coca-Cola Company and its exercise of its rights under our bottler's agreements; CCIsability tomaintain and improve its competitive position in its markets; CCIsability to obtain raw materials and packaging materialsat reasonable prices; changes in CCIsrelationship with its significant shareholders; the level of demand for its products inits markets; fluctuations in the value of the Turkish Lira or the level of inflation in Turkey; other changes in the political or

economic environment in Turkey or CCIsother markets; adverse weather conditions during the summer months; changesin the level of tourism in Turkey; CCIsability to successfully implement its strategy; and other factors. Should any of theserisks and uncertainties materialize, or should any of managements underlying assumptions prove to be incorrect, CCIs actual results from operations or financial conditions could differ materially from those described herein as anticipated,

believed, estimated or expected. Forward-looking statements speak only as of the date of this press release and CCI has no

obligation to update those statements to reflect changes that may occur after that date.

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2010 Review

Reported 665 million unit cases of sales volume in 2010, up

by 13.5%

All categories delivered double digit growth in 2010

Delivered on our long-term strategic trust; EBITDA ahead of

revenue and revenue ahead of volume growth

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Turkey74.3%

International25.7%

Pakistan34%

Kazakhstan24%

Azerbaijan19%

Jordan 7%

Turkmenistan 7%Kyrgyzstan 5%

Iraq 3%

Syria 1%

2010 Sales Volume Breakdown

Volume split of InternationalOperations (uc) - By Country

Volume split (uc) ConsolidatedVolume split (uc) - Geography

Sparkling72.7%

Still19.5%

Tea 7.8%

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Turkey sales volume up by 12.6% in 2010

Strong performance in all categories

Macro outlook and above average weather temperatures

supporting top-line growth

Turkey

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Damla MineraNatural - flavored

Cappy Ramadanerbeti and

Lemonade Cherry

Coke 3L

New Introductions inNRTD Tea category

Nestea Mango -Pineapple

Doadan RTD

Product Introductions in 2010 in Turkey

Fanta Tangerineand Blood Orange

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International Operations

International Operations sales volume reached 171

million unit cases in 2010, up by 16%

Central Asia volume up by 25%

Iraq sustained its strong volume growth

Growth driven by customized RTM strategies and local

product innovations

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Pakistan Update

Volume up by 8.3% for the full year

negative effect of floods in the third quarter

growth recovered to low teens in 4Q10.

Market share improved to 28.7% on the back of

accelerated cooler investments and increased market

penetration

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Product Introductions in 2010 - International

Piko Pulpy PET 0.5L

Tropic & LemonKazakhstan

Piko Pulpy

PET 1LOrangeKazakhstan

Nestea PET 1L

Lemon and PeachKazakhstan

Fanta Lemonades

PET 0.5,1, 1.5LDushes and BuratinoKyrgyzstan, Kazakhstan

Cappy relaunch PET330ml, 1.5L Orange

- IraqOrange, Grape and

Mango - Jordan

Fanta Fruity

PET 2.25LCan 250ml Jordan

Special Productfor Ramadan Coke

PET 3LAzerbaijan

Piko Tempo PET500ml multi-fruit &

apple-peachKazakhstan

Cappy Sourcherry,Peach, Multifruit

and 100% Orange200ml - Azerbaijan

Fruktime PET 1L Pear,Buratino, Lemon -

Kyrgyzstan

NRB 250ml

Coca-ColaCoca-Cola ZeroFanta Orange

Syria

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Market Shares & Positions

Sparkling

68.9% #1 69.2% #1

28.7% #2 27.8% #2

34.2% #1 34.2% #1

56.2% #1 52.6% #1

12.2% #2 13.2% #2

8.9% #2 10.5% #2

n.a. #1 n.a. #1

n.a. #1 n.a. #1

Kazakhstan

Pakistan

Turkey (1)

Azerbaijan

Kyrgyzstan (3)

Turkmenistan (3)

2010

Source: Nielsen,(1) Nielsen Database Adjustment(2) MEMRB

(3) CCI Estimate

Jordan

Syria (2)

Water

9.2% #2 8.8% #3

9.6% #3 7.7% #3

6.6% #3 4.6% #4

54.5% #1 48.9% #1

Fruit Juices & Nectars

24.5% #1 25.1% #1

1.1% #9 1,6% #8

8.1% #3 8.0% #3

6.1% #5 4.9% #6

2009 2010 2009 2010 2009

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349.9

422.8

FY09 FY10

1,868.2

2,121.4

FY09 FY10

2,407.5

2,753.2

FY09 FY10

Net sales up by 14.4% in FY10 Turkey Net Sales

(TL in millions) (US$ in millions) (TL in millions)

Consolidated up by 24.9% to TL 529.2 million

Turkey up by 22.9% to TL 399.8 million

International up by 32.3% to US$ 89.9 million

4 Q1

0

Turkey Net Sales International Net Sales Consolidated Net Sales

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368.7

435.0

FY09 FY10

47.169.5

FY09 FY10

296.6

342.5

FY09 FY10

EBITDA up by 18.0% in FY10Turkey Net Sales

(TL in millions) (US$ in millions) (TL in millions)

Consolidated up by 42.7% to TL 35.2 million

Turkey up by 17.7% to TL 22.6 million

International up by 90.9% to US$ 10.4 million

4 Q1

0

Turkey EBITDA International EBITDA Consolidated EBITDA

*EBITDA Margin (Excl Other)

15.9%

14.8%

16.5%

13.5%

16.1%

14.5%* *

*

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Financial ReviewN. Orhun Kstem CFO


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TL/$Year-End

TL/$Average

December31, 2010 1,5460

December31, 2010 1,4990

December31, 2009 1,5057

December31, 2009 1,5457

2.7% (3.0%)

Consolidated /Turkey International*

FunctionalCurrency TL USD

ReportingCurrency TL USD

Introduction to Financial Statements

InflationAnnual

December 31, 2010 6.40%

Basis of Preparation

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Accounting standard is IFRS as per regulations of the Capital Markets Board of Turkey (CMB).

The Groups interest in joint ventures is accounted by way of proportionateconsolidation.

The functional currency of CCBPL is Pakistan Rupee (PKR).

DefinitionsNet Sales Net of discounts and special consumption tax for Turkishoperation

EBITDA = EBIT + Amortization & Depreciation + Relevant Non Cash Expensesincluding Provision for Employee Benefits - Relevant Non-cash incomeincluding Negative Goodwill

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FY10 FY09 Change% 4Q10 4Q09Change

%

Consolidated(TL million)

Volume 665.4 586.5 13.5% 130.2 109.8 18.5%Net Sales 2,753.2 2,407.5 14.4% 529.2 423.8 24.9%

EBITDA 435.0 368.7 18.0% 35.2 24.7 42.7%

EBITDAMargin 15.8% 15.3% 0.5 pp 6.6% 5.8% 0.8 pp

NetIncome 197.7 169.6 16.6% (41.7) (17.3) n.m.

Turkey(TL million)

Volume 494.4 438.9 12.6% 95.5 81.7 17.0%

Net Sales 2,121.4 1,868.2 13.6% 399.8 325.2 22.9%

EBITDA 342.5 296.6 15.5% 22.6 19.2 17.7%

EBITDAMargin 16.1% 15.9% 0.3 pp 5.7% 5.9% (0.2 pp)

International(US$ million)

Volume 171.0 147.6 15.9% 34.6 28.2 22.8%Net Sales 422.8 349.9 20.8% 89.9 67.9 32.3%

EBITDA 69.5 47.1 47.7% 10.4 5.5 90.9%

EBITDAMargin 16.4% 13.5% 3.0 pp 11.6% 8.0% 3.6 pp

Key Financials Consolidated

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MaturityDate 2011 2012 2013 2014 2015

% of total debt 50% 1% 45% 2% 2%

Million FY10 FY09

USD denominated* 548 593 -8%EURO denominated* 43 66 -35%

TL denominated 294 218 35%

Other (in TL terms) 10 23 -57%

Total Financial Debtin TL 1246 1289 -3%

Total Cash &Equivalent in TL 599 585 2%

Net Debt in TL 647 704 -8%

Net Debt in US$ 418 468 -11%

Debt Structure

*In original currency

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2009 2010

Financial Leverage and FCF

2009 2010

1.91x

1.49x

Net Debt/EBITDA Capex/Net Sales FCF(Excluding acquisitions) (TL million)

5.8%

2009 2010

73.1

110.8

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5.4%


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Closing Remarks

Michael A. ONeill CEO

Closing RemarksMichael A. ONeill CEO


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Coca-Cola Icecek Investor RelationsTel: +90 216 528 3386Fax: +90 216 365 [email protected]

Thank you

Documents

Coca Cola Ecek FY10 Results Webcast_nw