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LIQUID COVER PAGEKeep the text centered and the copy in smaller lower case
SUSTAINABLE REVENUE GROWTH
GENERATIONPresenter
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Adopt The RGM 5 Pillar Process
Participate In The BIG Led Atlanta Workshop
Capture And Share Best Practices
Begin The Journey To Sustainable Revenue Growth
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THE COCA-COLA WAY OF RGM
Data Standards
And Tools
Opportunity
Mapping
OBPPC Pricing, Terms
& Conditions
Promotional
Spend
Unlocking Value
Through P&L
Transparency
Identifying Where
To Play For
Profitable Growth
Building Margin
Through
Differentiation
Understanding
What We Give &
What We Get
Customer
Investments
Working Harder
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Data Standards
And Tools
Unlocking Value
Through P&L
Transparency
Opportunity
Mapping
Identifying Where
To Play For
Profitable Growth
OBPPC
Building Margin
Through
Differentiation
Pricing, Terms
& Conditions
Understanding
What We Give &
What We Get
Promotional
Spend
Customer
Investments
Working Harder
THE COCA-COLA WAY OF RGMRGM’S FIVE PILLARS
India
T Krishnakumar
Germany
Ulrik Nehammer
Turkey
Lasani Atasayan
Rolando
Japan
Calin Dragan
U.S.A.
Mark Rahiya
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BIG R / LITTLE r
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LIQUID COVER PAGEKeep the text centered and the copy in smaller lower case
CREATING VALUE THROUGH:GROWING TRANSACTIONS > REVENUE > VOLUME
Dimitris Lois – Coca-Cola HBC, Chief Executive OfficerNikos Koumettis – President, Central and Southern Europe Business Unit
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REVENUE HAS BEEN DECLINING IN CSE/CCH TERRITORIES AS A RESULT OF THE GLOBAL ECONOMIC CRISIS
9
Source: I.H.S., Industry Estimates, Compass, Financial Reporting;CSE key data are referring to 2015
Unemployment +3%
Personal Disposable Income -1%
NARTD Industry Revenue -2%
NARTD Industry Volume -2%
KO NARTD Value Share +0.2ppt
KO SSD Value Share +0.5ppt
5-Year CAGR
2009-2014
Countries
Million People
USD Billion KO System Revenue
Billion UC KO
KO NARTD Value Share
KO SSD Value Share
23 218
41.3
30%66%
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2015: THE TURNAROUND - THIS IS WHAT WE DEFINED AS WINNING TOGETHER
Source: Compass, Financial Reporting; GFK
Transaction 4.7%vs. Volume 4.5%
Transactions Ahead Of Volume
Transaction 4.7%vs. Volume 4.0%
Transactions Ahead Of Revenue
System Revenue +4%
Revenue Growth (Absolute)
KO SSD +2pts
Household Penetration Increase
FY 2015 vs. PYAlignment On The Key
Pillars Of The Strategy
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2015: THE TURNAROUND - THIS IS HOW WE ACHIEVED IT
What We Did Not Do
Pricing Challenges In A Deflationary Environment
Competition Pressure In FC Packs
What We Chose To Do
Grow Revenue & HHP Primarily Through Segmented Price-Mix:
• Invest In IC And Ho.Re.Ca. • Accelerate Multipacks Single Serve• Accelerate FC Entry Packs (1L)• Re-set Selectively Prices On FC
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LEVERAGING THREE PILLARS
Source: Compass, Financial Reporting; GFK
*HH Penetration KO SSD
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HISTORICALLY STRONG OBPPC WITH DETAILEDANALYSIS AND INSIGHTS
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ITALY: INCREASED REVENUE IN HO.RE.CA THROUGH 330ML GLASS BOTTLE AND “PERFECT SERVE”
Background And Strategy
Water, Wine And Beer Dominate TheEat & Drink Out Of Home Occasion
KO Pack Offer Is Not Premium:Can Is The Most Commoditize Pack
Pricing Comparison Among Channels(Can Serves Home Channels As Well)
Partnership programs with Wholesalers (1,423 Active WHS)
Full activation in the outlets (143K active accounts) vs. 70K* in 2014
ATL & BTL calendar to support Glass transaction vs. Can (+15% 2015 FY )
Leverage Eat & Drink
Out Of Home Occasion
Offering The Best
Consumer Experience
Growing Revenue And
Transaction
2014
vs. PY
2015
vs. PY
Transactions -8% +5%
Revenue -9% +3%
Volume -9% +2%
Glass Transactions +43%
Plan Results
Source: Compass and CCH NSR database
* In 2014 Glass 250mlNote: data are referring to Total SSD if not differently specified
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GREECE: SMALL BASKET OPPORTUNITY VIASSD CAN MULTIPACKS
Background And Strategy
Ssds Single Serves Volume Decline(CAGR ’10 – ’14: -9%)
Local Players Gained Share In Single Serves
High Contribution Of Cans In Small Baskets
My Coke Lost Small Baskets Incidence(-0.4pts)
2015: Launch of 375ml can in Org. Trade
2016: Differentiate promo strategy between 330ml and 375ml can to drive transactions (6x330ml 5+1) and volume (8x375ml 6+2)
360 approach ATL/BTL
Superior execution (clear guidance and training) employee & customer engagement plan
Drive Transactions And
Increase Single Serves
Shopper Base Via SS Pack
Proliferation
2012-14
2YRS CAGR
2015
vs. PY
Transactions -2% +3%
Revenue -2% Flat
Volume -2% 1%
My Coke Single Serve HHP (Q1 2016) +1.9%
2 Years Plan Results
Source: Compass and CCH NSR database, TNS/KANTAR Note: data are referring to Total SSD if not differently specified
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SERBIA: SMALL BASKET OPPORTUNITY VIA NEW FC ENTRY PACK
Background And Strategy
Reduce Strong Dependency From Pet 2lt (83% Of TotalMultiserve Packs)
Increase Small Basket Penetration (Small Baskets 4.2% Vs. Big Baskets 15.5%)
Promotional Mechanic Involving Top Customers To Increase:
• Secondary Placements
• Gondola Activations
• Coke & Meals Activations
Drive Small Basket Penetration And Frequency Of Coke In Super Market Format
2014
Vs. Py
2015
Vs. Py
Transactions -2% +7%
Revenue -1% +6%
Volume +1% +5%
My Coke Small Basket Incidence +2.4%
2 Years Plan ResultsPET 1.25
Source: Compass and CCH NSR database, GFK Note: data are referring to Total SSD if not differently specified
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HUNGARY: REDESIGN SSD AT HOME ARCHITECTURE TO TURNAROUND BUSINESS AND INCREASE REVENUE
Background And Strategy
SSD Volume Decline(CAGR 2008-14 -3%)
Significant Drop In KO SSD Frequency (-11% In 2014vs.Py)
Proliferate MS Packs: Out Pet 2lt And In Pet 1.75 And Pet 2.25
ATL & BTL Consistent With Each Pack Role And Consumption Occasion
Superior Execution Via Clear Guidance, Training, Employee & Customer Engagement Plan
Redesign At Home SSD Architecture To Drive Frequency Via Better Fitting To Occasions And To Optimize Revenue
2014
vs. PY
2015
vs. PY
Transactions 2% +13%
Revenue 4% +10%
Volume Flat +7%
KO SSD HHP (Avg. Quarter) +6pts
2 Years Plan Results
Source: Compass and CCH NSR database, GFK Note: data are referring to Total SSD if not differently specified
PET 1.25
RGMGCCL Award
Winner
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AS A SYSTEM WE ARE WORKING AGAINST A“10 STEP” PROCESS
System
RGM
Framework
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TO SUM UP:
RGM Is A Way Of Doing Business In CSE/CCH And Is A
Critical Enabler Of Our System Growth Story Creating Value Over Time
OBPPC Is Adjusted In Each Country, Not “One Size Fits All”
We Have A Simple Process (“10 Steps”) To Identify, Prioritize,
Sequence And Capture Revenue Opportunities
It Is Only Possible With A Joint System Approach
RGM Is Not Just For Commercial/Finance, Everyone Has a Role To Play
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MOVING INTO 2016 AND BEYOND, WE ARE FURTHER ENHANCING OUR RGM APPROACH
Embed an aligned “10 steps” revenue growth process
Run RGM simulation with all System teams
Include revenue into weekly reports
An aligned System equation transactions > revenue > volume > calories
Continue focus on HHP and Teen recruitment
Drive an aligned commercial growth platform
Category growth strategy (with focus on calories management)
Revenue accretive brands (adult sparkling) and stills roadmap
Packaging options expansions and channel roadmap
Quality and quantity of Marketing
Commercial investments per channel
Route to Market and Supply Chain capabilities
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QUESTIONS?
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THANK YOU!