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CONFIDENTIAL 1 CONFIDENTIAL 1

CONFIDENTIAL 1€¦ · Lasani Atasayan Rolando Japan Calin Dragan U.S.A. Mark Rahiya. CONFIDENTIAL 6 BIG R / LITTLE r. CONFIDENTIAL 7. CONFIDENTIAL 8 LIQUID COVER PAGE Keep the text

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Page 1: CONFIDENTIAL 1€¦ · Lasani Atasayan Rolando Japan Calin Dragan U.S.A. Mark Rahiya. CONFIDENTIAL 6 BIG R / LITTLE r. CONFIDENTIAL 7. CONFIDENTIAL 8 LIQUID COVER PAGE Keep the text

CONFIDENTIAL 1CONFIDENTIAL 1

Page 2: CONFIDENTIAL 1€¦ · Lasani Atasayan Rolando Japan Calin Dragan U.S.A. Mark Rahiya. CONFIDENTIAL 6 BIG R / LITTLE r. CONFIDENTIAL 7. CONFIDENTIAL 8 LIQUID COVER PAGE Keep the text

CONFIDENTIAL 2

LIQUID COVER PAGEKeep the text centered and the copy in smaller lower case

SUSTAINABLE REVENUE GROWTH

GENERATIONPresenter

CONFIDENTIAL 2

Page 3: CONFIDENTIAL 1€¦ · Lasani Atasayan Rolando Japan Calin Dragan U.S.A. Mark Rahiya. CONFIDENTIAL 6 BIG R / LITTLE r. CONFIDENTIAL 7. CONFIDENTIAL 8 LIQUID COVER PAGE Keep the text

CONFIDENTIAL 3

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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CONFIDENTIAL 4

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

CONFIDENTIAL 4

Page 5: CONFIDENTIAL 1€¦ · Lasani Atasayan Rolando Japan Calin Dragan U.S.A. Mark Rahiya. CONFIDENTIAL 6 BIG R / LITTLE r. CONFIDENTIAL 7. CONFIDENTIAL 8 LIQUID COVER PAGE Keep the text

CONFIDENTIAL 5

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

CONFIDENTIAL 5

Page 6: CONFIDENTIAL 1€¦ · Lasani Atasayan Rolando Japan Calin Dragan U.S.A. Mark Rahiya. CONFIDENTIAL 6 BIG R / LITTLE r. CONFIDENTIAL 7. CONFIDENTIAL 8 LIQUID COVER PAGE Keep the text

CONFIDENTIAL 6

BIG R / LITTLE r

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CONFIDENTIAL 7CONFIDENTIAL

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CONFIDENTIAL 8

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CREATING VALUE THROUGH:GROWING TRANSACTIONS > REVENUE > VOLUME

Dimitris Lois – Coca-Cola HBC, Chief Executive OfficerNikos Koumettis – President, Central and Southern Europe Business Unit

CONFIDENTIAL 8

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CONFIDENTIAL 9

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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CONFIDENTIAL 10

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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CONFIDENTIAL 11

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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CONFIDENTIAL 12

LEVERAGING THREE PILLARS

Source: Compass, Financial Reporting; GFK

*HH Penetration KO SSD

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CONFIDENTIAL 13

HISTORICALLY STRONG OBPPC WITH DETAILEDANALYSIS AND INSIGHTS

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CONFIDENTIAL 14

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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CONFIDENTIAL 15

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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CONFIDENTIAL 16

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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CONFIDENTIAL 17

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

Page 18: CONFIDENTIAL 1€¦ · Lasani Atasayan Rolando Japan Calin Dragan U.S.A. Mark Rahiya. CONFIDENTIAL 6 BIG R / LITTLE r. CONFIDENTIAL 7. CONFIDENTIAL 8 LIQUID COVER PAGE Keep the text

CONFIDENTIAL 18

AS A SYSTEM WE ARE WORKING AGAINST A“10 STEP” PROCESS

System

RGM

Framework

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CONFIDENTIAL 19

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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CONFIDENTIAL 20

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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CONFIDENTIAL 21

QUESTIONS?

CONFIDENTIAL 21

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CONFIDENTIAL 22

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CONFIDENTIAL 23

THANK YOU!