Post on 15-Aug-2020
transcript
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Investor Tour – New Zealand
New ZealandA robust business model
George Adams
16-17 October 2008
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30
80
130
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430
480
530
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Ne
t S
ale
s R
eve
nu
e (
NZ
D $
m)
10
20
30
40
50
60
70
Un
it C
ase
s (
mill
ion
s)
Revenue Vol mucs
The New Zealand business is in growth and is resilient – sales revenue has tripled and volume decreased in only 2 of the past 15 years
Volume and Net Sales Revenue 1993 - 2007
Net
Sale
s R
eve
nu
e $
mU
nit C
ase
s (m
illion
s)
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The improvement in earnings has been driven by revenue management initiatives, recovery of COGS increases and efficiencies from capital investments
17.7% 16.9%
23.1%
17.4%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
H1 H2 H1 H2 H1
2006 2007 2008
% Growth
Record local currency earnings +20.4%
Lo
cal C
urr
en
cy E
BIT
Gro
wth
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CCA remain on track to deliver a record result in NZ in 2008 – despite the softer H2 macro environment
Source: Westpac Q3 Consumer Confidence Survey - September 24 2008
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CCA has a strong market position especially in CSDs
100%
80%
60%
40%
20%
0%
Juice WaterCSD
Energy
Sports
Milk
Total NARTD Market by Volume (Jun-08)*
CCA Frucor Private Label Other
* Areas in the above diagram are indicative only
Market Size
Ma
rke
t S
ha
re
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Significant CSD initiatives will drive EBIT growth over the nextfew years
% C
on
trib
uti
on
to
EB
IT G
row
th
2008 – 2010 Key Drivers of EBIT Growth
CSD
Non CSD
Alcohol & Coffee
Project Zero
25%
30%
20%
25%
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2005 2008 2008
At 18% of volume, multi-pack can CSD volumes are small relative to Australia (at 44%) and are a major growth opportunity
New Zealand Australia
Cans % Grocery CSD (Volume)
15%18%
44%
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Momentum is building with multi-pack can growth accelerating
Launched Progressive 30 pack and Foodstuffs 24 pack in 2008
Multi-pack can reset completed in Progressive and Foodstuffs
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Cold drink availability expansion in Grocery is significant
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% C
on
trib
uti
on
to
EB
IT G
row
th
2008 – 2010 Key Drivers of EBIT Growth
CSD
Non CSD
Alcohol & Coffee
Project Zero
25%
30%
20%
25%
Significant Non-CSD initiatives will drive EBIT growth over the next few years
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The Energy category is 4 times larger in New Zealand relative to Australia – the opportunity is significant
Retail Market Value Energy NZ$230m Retail Market Value Energy A$700m
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And with the launch of Relentless CCA is beginning to become a significant energy player with 21.2% share of the energy category
2,000 dedicated energy cooler doors in 1H 2009
New Zealand’s No.2 energy brand
Large pack energy 440ml Relentless
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And momentum will be fuelled by the launch of a second flavour- ‘Relentless Inferno’
Juice based energy hit!
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The launch of Glacéau and PUMPED will tap the health and wellbeing trend and further build premium in the water category
29.1%
Pump value share of
Water category MAT Sep-08
27.3%
Leveraging the existing brand strength of PUMP
New product launch
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0.0
0.5
1.0
1.5
2.0
2.5
2005 2007
Un
it C
ases (
millio
ns)
New Zealand Powerade per capita consumption now exceeds Australia and has grown by 35% between 2005 - 2007
35% CAGR
0
2
4
6
8
10
12
14
2000 2001 2002 2003 2004 2005 2006 2007
Australia
New Zealand
Powerade Volume Growth
Powerade Consumption Per Capita
Key growth drivers:
• Isotonic launch
• All Blacks promotional activity
• Flavour variants
• Multi- packs to come
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% C
on
trib
uti
on
to
EB
IT G
row
th
2008 – 2010 Key Drivers of EBIT Growth
CSD
Non CSD
Alcohol & Coffee
Project Zero
25%
30%
20%
25%
Significant Alcoholic Beverage and Coffee initiatives will driveEBIT growth over the next few years
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Café Direct was acquired in March 2007 doubling the EBIT contribution from the vending business
• B2B free-vend coffee provider
• Margin on consumables
• 40% market share
• 1200 outlets and 1500 machines
• Integrated with vending operations
• Hot beverage 12% of Convenience & Leisure value (RTD)
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The launch of premium beer and Jim Beam ready-to-drink manufacturing is growing new earnings streams
Manufacture of Jim Beam RTD commenced in September 2007
Pacific Beverages NZ has already captured 4% of the premium beer category*
*Source ACNeilsen scan Quarter to Sep-08
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Product innovation and brand development is the key to CCA’s differentiation and driver of the continued volume growth of alcoholic beverages
VOL % SHARE VOL % SHARE
VOL RANK MANUFACTURER (Aug 08 YTD) +/- YA VOL % CHG YA
1 LION NATHAN 48.8 -0.2 20.8
2 DB BREWERIES 33.3 -2.6 12.4
3 INDEPENDENT LIQUOR 10.9 2.2 52.9
4 COCA-COLA AMATIL NZ LTD 1.8 1.7 5520.7
5 FOSTERS 1.8 0.1 26.2
ALL OTHER 3.5 -1.2 -10.1
Source : Grocery AC Nielsen
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% C
on
trib
uti
on
to
EB
IT G
row
th
2008 – 2010 Key Drivers of EBIT Growth
CSD
Non CSD
Alcohol & Coffee
Project Zero
25%
30%
20%
25%
Significant Project Zero initiatives will drive EBIT growth overthe next few years
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Project Zero: Auckland distribution centre delivers capacity until 2020 with reduced costs and improved customer service
Auckland DC - Commissioned May 2008
• Capital investment NZ$80m
• 27% increase in pick rates
• 1.7% improvement in pick accuracy
• 9% improvement in customer service scores
• 30% reduction in fleet movements
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Project Zero: 2009 initiatives will focus on manufacturing efficiency, SAP implementation and cost-to-serve reduction opportunities
Auckland Can Line Upgrade Leveraging our infrastructure investment
Hotfill Capability Enterprise and manufacturing efficiency
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2nd
2nd
1st
2nd
1st
1st
1st
1st
2007
1stNo EntryNo EntryNo EntryBest Customer Service Outbound
-
1st
No Entry
3rd
10th
4th
18th
2005
1st
1st
No Entry
2nd
8th
7th
1st
2006
1stNo EntryOverall Supreme Best Customer
Service
tba3rdPEL Supplier of the Year
Grocery
3rd1stCoalface Petro HO
C&L 2nd2ndCoalface Petro Store
1stNo EntryBest Customer Service Inbound
Customer Contact Centre
tba-NARGON Best Supplier
5th4thCoalface Route
20082004Awards
Project Zero: CCA’s investment in customer service is delivering results with the business regularly receiving best supplier in category awards
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Priorities for 2009 are:
• Revenue management initiatives to ensure recovery of COGS
increases
• Leveraging asset base to deliver efficiencies and increasing
capacity
• Further develop the CSD multi-pack can strategy
• Grow energy market share
• Develop premium water offerings (Glacéau / Pumped)
• Alcoholic beverages – increase in customer and brand availability