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John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO

John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

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Page 1: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

John F. Brock CHAIRMAN & CEO

Bill Douglas EVP & CFO

Page 2: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Forward-Looking Statements

• 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.

2

INCLUDED IN THIS PRESENTATION ARE FORWARD-

LOOKING MANAGEMENT COMMENTS AND OTHER

STATEMENTS THAT REFLECT MANAGEMENT’S

CURRENT OUTLOOK FOR FUTURE PERIODS.

Page 3: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Agenda

3

OPPORTUNITY

GROWTH

SHAREOWNER VALUE

CRS and KEY TAKEAWAYS

SOLID FOUNDATION

Page 4: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

CCE at a Glance

10-K 2012 4

$8.1 billion net sales

30 billion servings

annually to 170 million consumers

17 production facilities

~13,000 employees

EUROPE

Page 5: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Vision and Global Operating Framework

5

Be the best beverage sales and customer

service company

VISION #1 OR STRONG #2 IN EVERY CATEGORY WE COMPETE

1 1 OUR CUSTOMERS’ MOST VALUED SUPPLIER

1 2 A WINNING AND INCLUSIVE CULTURE 1 3

Drive Consistent Long-Term Profitable Growth

Page 6: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Solid Fundamentals

6

Commitment to Shareowners

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

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

LARGE AND

GROWING

CATEGORY1

NARTD: Retail Value of ~$65B with a +6% 3 year CAGR

SUCCESSFUL

POSITION2 #1 in Value & Volume Share

TRACK RECORD

OF GROWTH3

Meeting or exceeding our long-term targets on a

3 & 5 year compounded annual basis

Page 7: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Agenda

7

OPPORTUNITY

GROWTH

SHAREOWNER VALUE

CRS and KEY TAKEAWAYS

SOLID FOUNDATION

Page 8: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Market Overview

1. AC Nielsen FY12

2. Canadean FY11

3. Excludes tap/bulk water & dairy 8

BEVERAGE MARKET

~$25B

~$40B

~$95B

NA

RTD

CHANNELS

All

Non-measured2

Measured1

Grocery, Take

Home, and

On-Premise

SEGMENTS3

Ready-to-Drink:

Sparkling, Still,

and Water

Hot Tea/Coffee,

All Alcohol,

Dilutables

All Other2

BEVERAGES IS A ~$160B RETAIL MARKET IN CCE TERRITORIES

Page 9: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

US CCE Territories

~30% ~15%

~40%

~25%

~30%

~60%

NARTD – Category Growth Opportunity

1. FY12 AC Nielsen

2. FY11 Canadean 9

• GROW NARTD – European consumption is ~0.6x of US

• GROW SPARKLING – European consumption is ~0.5x of US

BEVERAGE PER CAP MIX

NARTD Sparkling1 NARTD Other2 All Other Bev2

OPPORTUNITIES

Page 10: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

3%

CCE – Focused on High Value Segments

1. AC Nielsen FY12

2. 10-K 2012 10

2 1 1

Sparkling

Still

Water

CATEGORY & CCE MIX

NARTD Volume NARTD Value CCE Volume

39%

17%

24%

37%

11%

37% 46%

86%

CCE participates in the highest value segments that drive favorable profit mix

Page 11: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Per Capita Consumption Growth Opportunity

PER CAPS IN CCE TERRITORIES1

TCCC PER CAPS1,2 2012

CCE PER CAPITA CONSUMPTION GROWTH IS KEY TO DRIVING 4-6% LT SALES TARGET

CCE

401

180

333

246

200

172

141

141

745

1: CCE internal reports 2: TCCC beverages based on eight fluid ounce servings; CCE & KO 2012 10-K

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

11

Page 12: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Agenda

12

OPPORTUNITY

GROWTH

SHAREOWNER VALUE

CRS and KEY TAKEAWAYS

SOLID FOUNDATION

Page 13: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Securing the Growth Opportunities

13

OUTSTANDING

MARKETING & EXECUTION

GREAT PEOPLE

SUCCESSFUL BRANDS

Page 14: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Successful Brand Portfolio

10-K 2012 14

COCA-COLA

TRADEMARK 1 68% MIX

SPARKLING

FLAVORS

AND ENERGY 1 18%

MIX STILLS 1 14%

MIX

Page 15: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Sparkling – Coca-Cola Trademark

AC Nielsen FY12 15

PACKAGE INNOVATION

• MyCoke 1.75 ltr, 375ml & 250ml

BRAND INNOVATION & EXPANSION

• Coke Zero Cherry

• Vanilla Coke

2009 2010 2011 2012

COKE ZERO VOLUME 1

12.6% 3YR

CAGR

#1 IN VOLUME AND VALUE COLA SHARE IN

EVERY TERRITORY

Page 16: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

2012 ENERGY SEGMENT GROWTH

CCE OUTPERFORMED

THE SEGMENT IN 2012

Sparkling – Flavors & Energy

AC Nielsen FY12 16

Energy

Segment

CCE

Brands

Volume 8% 19%

Value 9% 16%

PACKAGE INNOVATION

• Fanta 1 ltr & Fridgepack

• Relentless 250ml & 500ml can

• Burn 500ml

BRAND INNOVATION & EXPANSION

• Sprite with Stevia

• Energy line extensions

SWEETENER INNOVATION

• Burn Sugar Free

Page 17: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Stills

17

• Oasis 2 ltr

• Nestea can & 1 ltr

• Oasis Mango &

Lemonade

• vitaminwater

Sunshine

• Nestea

Lemon Stevia

• Oasis Citrus

Punch Light

PACKAGE

INNOVATION

BRAND

INNOVATION

& EXPANSION

SWEETENER

INNOVATION

Page 18: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

2013 Marketing Calendar

18

2013

GROWTH WILL BE

DRIVEN BY

‘CORE’

BRANDS

Page 19: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Share A Coke

19

• Connect with target

shoppers and consumers

• Reinforce engagement

and brand relevance

• Motivate purchase

• Facilitate recruitment

• Drive excitement

Page 20: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Commercials

20

shareacoke.com

Page 21: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Supply Chain Excellence

21

CUSTOMER CENTRIC

SUPPLY CHAIN

• Pan European scale with

global procurement capability

• Flexible & efficient

logistics/distribution system

• Cost efficient production &

expandable infrastructure

• Responsible & sustainable

Page 22: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

BUSINESS TRANSFORMATION PROGRAM

Optimizing Our Business

22

IMPROVE OUR OPERATING MODEL FOR DRIVING SUSTAINABLE FUTURE GROWTH

• Streamline and reduce back

office cost structure

• Standardized sales and marketing

into a channel-focused organization

• Improve efficiency and effectiveness

Best practice

evolution

Proven results in

Benelux

More aligned to

customers’ needs

Better position to

capitalize on

opportunities

Page 23: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

New Operating Model in Norway

23

FROM TO RESULT

Two

primary packages

that are refillable

Package flexibility

that is recyclable and

non-refillable

Expanded

package offering

Direct Store

Delivery

Indirect

Delivery

Customer preferred

delivery method

POSITIVE ENVIRONMENTAL IMPACT: RECYCLING, PRODUCTION, PACKAGING, AND DISTRIBUTION

Page 24: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Investing in Our Future

24

CAPITAL INVESTMENT

AND…

• Evolving customer value creation

model and increasing selling

capabilities

• Advancing enabling technologies

and improving on-line &

digital shopping

• Developing people and investing

in local communities

Page 25: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Agenda

25

OPPORTUNITY

GROWTH

SHAREOWNER VALUE

CRS and KEY TAKEAWAYS

SOLID FOUNDATION

Page 26: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Financial Priorities

26

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

DRIVE

CONSISTENT

LONG-TERM

PROFITABLE

GROWTH

Page 27: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Financial Approach

27

CASH FROM

OPERATIONS

CAPITAL

INVESTMENT

OPTIMIZE CAPITAL

STRUCTURE

M&A

RETURN CASH TO

SHAREOWNERS

Achieve long-term targets

Invest prudently

Reach and operate within target leverage

Short Term “use” and long-term “source” of cash

Competitive dividend and share repurchase

+

=

+/–

Page 28: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Cash from Operations

Comparable & Currency Neutral 28

GENERATE SOLID FREE CASH FLOW

GROWTH ACHIEVE LONG-TERM

TARGETS

NET SALES

OPERATING INCOME

4% – 6%

6% – 8%

Page 29: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Invest for Long-Term Growth

10-K 2012 29

• LT target ~4.0% – 4.5% of net sales

• ~2/3 supports growth

• ~1/3 maintains existing assets

2012 CAPITAL MIX CAPITAL HIGHLIGHTS

Operations Cold Drink Equipment IT, Other

58% 28%

14%

Page 30: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Balance Sheet Flexibility

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

30

NET DEBT1 TO EBITDA

WACD ~3% AND DEBT MATURITIES ARE GENERALLY < ANNUAL FCF

2010 2011 2012 2013E

1.6x2 1.7x 2.0x

≥ 2.5x LONG-TERM TARGET 2.5x – 3.0x

Page 31: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Investing in High Return Opportunities (including M&A)

31

• 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

OPPORTUNITIES EVALUATED AGAINST ALTERNATIVES, INCLUDING RETURN OF CASH TO SHAREOWNERS

Page 32: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Solid Return on Invested Capital (ROIC)

Average Invested Capital = (Beginning & Ending Net Debt & Equity) / 2

32

After Tax Comparable OI

Average Invested Capital CCE ROIC 14% 2012 Year End = =

LONG-TERM TARGET OF ≥ 20 BPS ANNUAL IMPROVEMENT

Working Capital

TIGHTLY MANAGE

in High Return Initiatives

INVEST Operating

Growth

DRIVE

Page 33: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

2010 2011 2012 2013E

0.2

0.8

0.8

~1.0

Cash Returned to Shareowners

33

SHARE REPURCHASE (in $B)

~$2.8B OF SHARE REPURCHASES AFTER

FORMATION OF NEW CCE THROUGH 2013E

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

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

2013 RATE

INCREASE OF 25%

DIVIDENDS

10-K, rounded

Page 34: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Cash Available for Shareowners

CCE internal reports 34

+

+

FUTURE OPPORTUNITY

Dividends

Share

Repurchases

~12% of Market Cap

Ongoing FCF MSD

Organic FCF Growth +

Increasing leverage

(to mid point of LT target range) LSD

Maintain Debt Leverage +

% of Mkt Cap

2013E

Page 35: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Operating Context

1. Internal reports

2. Comparable, currency neutral; rounded 35

• Restored growth after 2004

and 2005

• Grew at an average rate of

5.5% from 2006 – 2011

• Delivered 2.5%2 OI growth

in a challenging 2012

2013 remains dynamic and challenging - our focus

continues to be managing business levers to drive

shareowner value

VOLUME + PRICE PER CASE1 (Annual Growth Rates)

02 03 06 07 08 09 10 11 12

6.5

8.0

-3.0

-1.0

5.0

3.0

5.0

9.5

5.0 5.5

0.0 04 05

Page 36: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Key Financial Takeaways

36

FOCUS ON

CONSISTENT

LONG-TERM

PROFITABLE

GROWTH

• 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

Page 37: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Agenda

37

OPPORTUNITY

GROWTH

SHAREOWNER VALUE

CRS and KEY TAKEAWAYS

SOLID FOUNDATION

Page 38: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

CRS

38

• 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 behaviorial study with

Exeter University

SIGNIFICANT PROGRESS: CARBON REDUCTION,

WATER USAGE AND PACKAGING RECYCLING

2012 KEY HIGHLIGHTS

• Community investment, including

active and healthy living

programs

• Expanded portfolio of low and

no-calorie offerings

• All new cooler placements

are HFC-free

Page 39: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Business Environment Risks

39

THOUGH OPTIMISTIC

ABOUT OUR LT 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

Page 40: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

Key Takeaways

40

CCE IS

EXECUTING

OUR

STRATEGIC

PRIORITIES

• Operating environment remains

challenging

• History of solid growth

• Financial priorities focused on

long-term profitable growth

• Track record of and focus on

delivering shareowner value

Page 41: John F. Brock · 2019. 9. 3. · John F. Brock CHAIRMAN & CEO Bill Douglas EVP & CFO . ... 10-K for the year ended December 31, 2012 and other SEC filings. 2 INCLUDED IN THIS PRESENTATION

John F. Brock CHAIRMAN & CEO

Bill Douglas EVP & CFO