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2015 HIGHLIGHTS RETURNING CASH TO SHAREHOLDERS OVER TIME *CURRENCY NEUTRAL FINANCIAL METRICS DETERMINED BY CONVERTING OUR CURRENT PERIOD LOCAL CURRENCY FINANCIAL RESULTS USING THE PRIOR PERIOD FOREIGN CURRENCY EXCHANGE RATES. **2015 CORE DILUTED EARNINGS PER SHARE EXCLUDES UNREALIZED COMMODITY-RELATED MARK-TO-MARKET LOSSES, A NON-CASH BRAND IMPAIRMENT CHARGE FOR GARDEN COCKTAIL AND AN ADJUSTMENT TO A PREVIOUSLY DISCLOSED LEGAL PROVISION. 2014 CORE DILUTED EARNINGS PER SHARE EXCLUDES UNREALIZED COMMODITY-RELATED MARK-TO-MARKET LOSSES, SEPARATION RELATED CHARGES, AN ADJUSTMENT TO A PREVIOUSLY DISCLOSED LEGAL PROVISION AND A SETTLEMENT CHARGE RELATED TO THE PURCHASE OF ANNUITIES FOR CERTAIN PARTICIPANTS RECEIVING BENEFITS IN OUR U.S. DEFINED BENEFIT PENSION PLANS. COMPOUND ANNUAL GROWTH RATE INCLUDES CHANGES IN STOCK PRICE SINCE DEC. 31, 2010, AND REINVESTMENT OF DIVIDENDS. THE PEER GROUP INDEX COMPRISES: THE COCA-COLA CO., PEPSICO, INC., MONSTER BEVERAGE CORP., THE COTT CORP. AND NATIONAL BEVERAGE CORP. * DPS MADE A TAX PAYMENT OF $531 MILLION IN 2012 RELATED TO THE PEPSICO, INC. AND THE COCA-COLA CO. LICENSING AGREEMENTS. NET SALES DPS S&P 500 SEGMENT OPERATING PROFIT **CORE EARNINGS PER SHARE 2012 2013 2014 2015 DIVIDENDS PAID SHARE REPURCHASES 2015 $6,397 2015 $1,629 2015 $4.10 2014 $6,121 2014 $1,504 $284 $302 $317 $355 $400 $400 $400 $521 2014 $3.65 At Dr Pepper Snapple Group, our success is driven by our leadership position in flavors, our great people, and our proven, consistent strategy to build our brands, execute with excellence and drive rapid continuous improvement (RCI) across the organization. In 2015, this winning combination resulted in another year of strong performance.We grew both dollar and volume share in carbonated soft drinks (CSDs) and shelf-stable juices on key brands and packages. Our brand partnerships and product tie-ins with sporting events, music and movies engaged consumers and built our brands while bringing fun and flavor to our growing fan base.Through product and package innovation, we met consumers’ evolving tastes and needs with new products such as Snapple Straight Up Tea and on- the-go packaging options such as Hawaiian Punch pouches. RCI is becoming the way we work at DPS, and our Lean tracks, which are cross-functional project teams targeting the areas of greatest opportunity for breakthrough change in our organization, helped to drive growth and productivity improvements. In addition, we rolled out visual management boards across the company, and our teams are using them to visually track their progress as they create efficiencies and target growth in areas they control. Finally, we continued to deliver shareholder value, returning $876 million to our shareholders through dividends and share repurchases in 2015. 25% 10% PEER GROUP INDEX 12% $876 $717 $702 $684 * ANNUALIZED TOTAL SHAREHOLDER RETURN +12% +8% +5% (IN MILLIONS, EXCEPT EARNINGS PER SHARE) (THROUGH DEC. 31, 2015) (IN MILLIONS) CURRENCY NEUTRAL FINANCIAL SNAPSHOT* BUILDING OUR BRANDS SUCCESSFUL MARKETING PROGRAMS – SUCH AS THE LONG-STANDING DR PEPPER TUITION GIVEAWAY AND THE STADIUM-FAVORITE LARRY CULPEPPER CAMPAIGN – DROVE CONSUMER ENGAGEMENT AND RESULTED IN DR PEPPER OUTPERFORMING THE CSD CATEGORY IN VOLUME GROWTH BY +2.5 POINTS DURING THE CAMPAIGN PERIOD. SOURCE: NIELSEN POINTS +2.5 +9% +7% +14% VOLUME MOTT’S SINGLE-SERVE JUICE VOLUME PEÑAFIEL BRAND MOTT’S SINGLE-SERVE SAUCE CLAMATO WAS USED TO MIX MORE THAN AT A MAJOR LEAGUE BASEBALL STADIUM. CLAMATO MICHELADAS VOLUME VOLUME CAMPAIGNS SUPPORTING THE LAUNCH OF THE STRAIGHT UP TEA LINE AND LIMITED-TIME OFFERINGS FOR FLAVORS SUCH AS LADY LIBERTEA CONTRIBUTED TO SNAPPLE’S GROWTH. SOURCE: COMPANY DATA MOTT’S CONTINUES TO DELIGHT MOMS AND KIDS ALIKE WITH ITS GREAT TASTE AND SNACK & GO PACKAGE OPTIONS. SOURCE: COMPANY DATA CANADA DRY GINGER ALE MARKET SHARE IS BUBBLING OVER – UP +2.3 POINTS IN 2015 – AND REPRESENTS 56 PERCENT OF THE TOTAL GINGER ALE CATEGORY VOLUME. SOURCE: NIELSEN DISTRIBUTION GAINS AND FLAVOR EXTENSIONS SUCH AS FRESADA CONTRIBUTED TO PEÑAFIEL’S GROWTH. SOURCE: COMPANY DATA STRONG DISTRIBUTION GAINS IN MEXICO AND FLAVOR EXTENSIONS SUCH AS PREPARADO AND LIMÓN CONTRIBUTED TO CLAMATO’S GROWTH. SOURCE: COMPANY DATA 165,000 +8% +30% VOLUME VOLUME +12% CLAMATO BRAND VOLUME +6% SNAPPLE BRAND OUTPERFORMED CSD CATEGORY BY VOLUME GINGER ALE SPARKLING UNSWEETENED WATER 4% VOLUME GROWTH ELIMINATED MORE THAN $5 MILLION NON-WORKING MARKETING DOLLARS TO BE REINVESTED BACK INTO CONSUMER-FACING ACTIVITIES. $5 MILLION DRIVING EXECUTIONAL EXCELLENCE RAPID CONTINUOUS IMPROVEMENT WE ALSO HELD DISTRIBUTION FOR CSDS ACROSS KEY BRANDS AND PACKAGES IN THE GROCERY CHANNEL AND GREW DISTRIBUTION OF SNAPPLE PREMIUM BY +1.2 POINTS IN THE CONVENIENCE CHANNEL. SOURCE: NIELSEN SOURCE: 2015 NIELSEN DATA FOR ALL MEASURED CHANNELS: U.S. ALL OUTLETS COMBINED INCLUDING CONVENIENCE THROUGH JAN. 2, 2016; CANADA THROUGH DEC. 26, 2015; MEXICO THROUGH DECEMBER 2015. *LIQUID REFRESHMENT BEVERAGES VOLUME AND DOLLAR SHARE GROWTH FOUNTAIN FOODSERVICE ALLIED BRANDS ALL-COMMODITY VOLUME DISTRIBUTION GAINS CANADA USA MEXICO CANADA DRY AND SCHWEPPES SPARKLING WATER MOTT’S SINGLE-SERVE JUICE SNAPPLE PREMIUM GROCERY +1 % +0.2 VOLUME QUICK-SERVICE RESTAURANT SHARE POINTS WHILE REPRESENTING A SMALL PORTION OF OUR TOTAL PORTFOLIO, ALLIED BRANDS ARE BECOMING A MORE IMPORTANT PART OF OUR STRATEGY, ALLOWING US TO PARTICIPATE IN EMERGING CATEGORIES. SOURCE: COMPANY DATA SOURCE: COMPANY DATA SOURCE: CREST AND COMPANY DATA GAINED DISTRIBUTION AND AVAILABILITY FOR CANADA DRY BY CLOSING MORE THAN 29,000 DISTRIBUTION VOIDS. 29,000 ADDED MORE THAN 42,000 NEW FOUNTAIN VALVES OUR ASSORTMENT OF ALLIED BRANDS CONTRIBUTED TO IN OUR NON-CARBONATED PORTFOLIO IN 2015. REDUCED DRIVER CHECK- IN/OUT TIME AT DIRECT- STORE DELIVERY SITES BY ABOUT 50 PERCENT. ELIMINATED MORE THAN 250,000 ANNUAL TRANSPORTATION MILES BY SHIPPING DIRECT TO CUSTOMERS. INCREASED SALES NEARLY 40 PERCENT FOR ENERGY AND WATER CATEGORIES IN OUR OHIO VALLEY TEL-SELL REGIONS. 50% 250,000 40% +0.4 +0.8 +1.1 +0.2 +1.0 +1.2 POINTS VOLUME SHARE OF CSDS POINTS VOLUME IN LRB* POINTS VOLUME TOTAL LRB* (EXCLUDING COLA) POINTS DOLLAR SHARE OF CSDS POINTS DOLLAR IN LRB* POINTS DOLLAR TOTAL LRB* (EXCLUDING COLA) +9.4 +3.5 +0.8 POINTS POINTS POINTS

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Page 1: RETURNING CASH TO SHAREHOLDERS OVER TIME · PDF fileRETURNING CASH TO SHAREHOLDERS OVER TIME ... At Dr Pepper Snapple Group, our success is driven by our leadership position in fl

2015 HIGHLIGHTS

RETURNING CASH TO SHAREHOLDERS OVER TIME

*CURRENCY NEUTRAL FINANCIAL METRICS DETERMINED BY CONVERTING OUR CURRENT PERIOD LOCAL CURRENCY FINANCIAL RESULTS USING THE PRIOR PERIOD FOREIGN CURRENCY EXCHANGE RATES. **2015 CORE DILUTED EARNINGS PER SHARE EXCLUDES UNREALIZED COMMODITY-RELATED MARK-TO-MARKET LOSSES, A NON-CASH BRAND IMPAIRMENT CHARGE FOR GARDEN COCKTAIL AND AN ADJUSTMENT TO A PREVIOUSLY DISCLOSED LEGAL PROVISION. 2014 CORE DILUTED EARNINGS PER SHARE EXCLUDES UNREALIZED COMMODITY-RELATED MARK-TO-MARKET LOSSES, SEPARATION RELATED CHARGES, AN ADJUSTMENT TO A PREVIOUSLY DISCLOSED LEGAL PROVISION AND A SETTLEMENT CHARGE RELATED TO THE PURCHASE OF ANNUITIES FOR CERTAIN PARTICIPANTS RECEIVING BENEFITS IN OUR U.S. DEFINED BENEFIT PENSION PLANS.

COMPOUND ANNUAL GROWTH RATE INCLUDES CHANGES IN STOCK PRICE SINCE DEC. 31, 2010, AND REINVESTMENT OF DIVIDENDS. THE PEER GROUP INDEX COMPRISES: THE COCA-COLA CO., PEPSICO, INC., MONSTER BEVERAGE CORP., THE COTT CORP. AND NATIONAL BEVERAGE CORP.

* DPS MADE A TAX PAYMENT OF $531 MILLION IN 2012 RELATED TO THE PEPSICO, INC. AND THE COCA-COLA CO. LICENSING AGREEMENTS.

NETSALES

DPS

S&P 500

SEGMENT OPERATING

PROFIT

**CORE EARNINGS PER SHARE

2012 2013 2014 2015

DIVIDENDS PAID

SHARE REPURCHASES

2015 • $6,397

2015 • $1,629

2015 • $4.10

2014 • $6,121

2014 • $1,504

$284 $302 $317 $355

$400 $400 $400$521

2014 • $3.65

At Dr Pepper Snapple Group, our success is driven by our leadership position in fl avors, our great people, and our proven, consistent strategy to build our brands, execute with excellence and drive rapid continuous improvement (RCI) across the organization. In 2015, this winning combination resulted in another year of strong performance. We grew both dollar and volume share in carbonated soft drinks (CSDs) and shelf-stable juices on key brands and packages. Our brand partnerships and product tie-ins with sporting events, music and movies engaged consumers and built our brands while bringing fun and fl avor to our growing fan base. Through product and package innovation, we met consumers’ evolving tastes and needs with new products such as Snapple Straight Up Tea and on-the-go packaging options such as Hawaiian Punch pouches. RCI is becoming the way we work at DPS, and our Lean tracks, which are cross-functional project teams targeting the areas of greatest opportunity for breakthrough change in our organization, helped to drive growth and productivity improvements. In addition, we rolled out visual management boards across the company, and our teams are using them to visually track their progress as they create effi ciencies and target growth in areas they control. Finally, we continued to deliver shareholder value, returning $876 million to our shareholders through dividends and share repurchases in 2015.

25%

10%

PEER GROUP INDEX 12%

$876$717$702$684*

ANNUALIZED TOTAL SHAREHOLDER RETURN

+12%

+8%

+5%

(IN MILLIONS, EXCEPT EARNINGS PER SHARE)(THROUGH DEC. 31, 2015)

(IN MILLIONS)

CURRENCY NEUTRAL FINANCIAL SNAPSHOT*

BUILDING OUR BRANDS

SUCCESSFUL MARKETING PROGRAMS – SUCH AS THE LONG-STANDING DR PEPPER TUITION GIVEAWAY AND THE STADIUM-FAVORITE LARRY CULPEPPER CAMPAIGN – DROVE CONSUMER ENGAGEMENT AND RESULTED IN DR PEPPER OUTPERFORMING THE CSD CATEGORY IN VOLUME GROWTH BY +2.5 POINTS

DURING THE CAMPAIGN PERIOD. SOURCE: NIELSEN

P O I N T S+2.5

+9%

+7%

+14%

V O L U M E

MOTT’S SINGLE-SERVE JUICE

VOLUMEPEÑAFIEL BRAND

MOTT’S SINGLE-SERVE SAUCE

CLAMATO WAS USED TO MIX MORE THAN

AT A MAJOR LEAGUE BASEBALL STADIUM.

C L A M ATOMICHELADAS

VOLUME

VOLUME

CAMPAIGNS SUPPORTING THE LAUNCH OF THE STRAIGHT UP TEA LINE AND LIMITED-TIME OFFERINGS FOR FLAVORS

SUCH AS LADY LIBERTEA CONTRIBUTED TO SNAPPLE’S GROWTH. SOURCE: COMPANY DATA

MOTT’S CONTINUES TO DELIGHT MOMS AND KIDS ALIKE WITH ITS GREAT TASTE AND SNACK & GO PACKAGE OPTIONS. SOURCE: COMPANY DATA

CANADA DRY GINGER ALE MARKET SHARE IS BUBBLING OVER – UP +2.3 POINTS IN 2015 – AND REPRESENTS 56 PERCENT OF THE TOTAL GINGER

ALE CATEGORY VOLUME. SOURCE: NIELSEN

DISTRIBUTION GAINS AND FLAVOR EXTENSIONS SUCH AS FRESADA CONTRIBUTED TO PEÑAFIEL’S GROWTH. SOURCE: COMPANY DATA

STRONG DISTRIBUTION GAINS IN MEXICO AND FLAVOR EXTENSIONS SUCH AS PREPARADO AND LIMÓN CONTRIBUTED TO CLAMATO’S GROWTH.

SOURCE: COMPANY DATA

1 6 5 , 0 0 0

+8% +30%VOLUME

VOLUME

+12%CLAMATO BRANDV O L U M E

+6%SNAPPLE BRAND

OUTPERFORMEDCSD CATEGORY BY

VOLUME

GINGER ALE SPARKLINGUNSWEETENED

W A T E R

4% VOLUMEG R O W T H

ELIMINATED MORE THAN $5 MILLION NON-WORKING MARKETING DOLLARS

TO BE REINVESTED BACK INTO CONSUMER-FACING

ACTIVITIES.

$5 MILLION

DRIVING EXECUTIONAL EXCELLENCE

RAPID CONTINUOUS IMPROVEMENT

WE ALSO HELD DISTRIBUTION FOR CSDS ACROSS KEY BRANDS AND PACKAGES IN THE GROCERY CHANNEL AND GREW DISTRIBUTION OF SNAPPLE PREMIUM BY +1.2 POINTS IN THE CONVENIENCE CHANNEL.

SOURCE: NIELSEN

SOURCE: 2015 NIELSEN DATA FOR ALL MEASURED CHANNELS: U.S. ALL OUTLETS COMBINED INCLUDING CONVENIENCE THROUGH JAN. 2, 2016; CANADA THROUGH

DEC. 26, 2015; MEXICO THROUGH DECEMBER 2015.

*LIQUID REFRESHMENT BEVERAGES

VOLUME AND DOLLAR SHARE GROWTH FOUNTAIN FOODSERVICE

ALLIED BRANDS

ALL-COMMODITY VOLUME DISTRIBUTION GAINS

CANADAUSA MEXICO

CANADA DRYAND SCHWEPPES

SPARKLING WATER

MOTT’S SINGLE-SERVE

JUICE

SNAPPLE PREMIUM

GROCERY

+1%+0.2

VOLUME

QUICK-SERVICERESTAURANT SHARE

POINTS

WHILE REPRESENTING A SMALL PORTION OF OUR TOTAL PORTFOLIO, ALLIED BRANDS ARE BECOMING A MORE IMPORTANT PART OF OUR STRATEGY, ALLOWING US TO

PARTICIPATE IN EMERGING CATEGORIES. SOURCE: COMPANY DATA

SOURCE: COMPANY DATA

SOURCE: CREST AND COMPANY DATA

GAINED DISTRIBUTION AND AVAILABILITY FOR CANADA DRY BY CLOSING

MORE THAN 29,000 DISTRIBUTION VOIDS.

29,000

ADDED MORE THAN

42,000NEW

FOUNTAIN VALVES

OUR ASSORTMENT OF ALLIED BRANDS

CONTRIBUTED TO

IN OUR NON-CARBONATED PORTFOLIO IN 2015.

REDUCED DRIVER CHECK-IN/OUT TIME AT DIRECT-STORE DELIVERY SITES BY

ABOUT 50 PERCENT.

ELIMINATED MORE THAN 250,000 ANNUAL TRANSPORTATION MILES

BY SHIPPING DIRECT TO CUSTOMERS.

INCREASED SALES NEARLY 40 PERCENT FOR ENERGY AND WATER CATEGORIES IN

OUR OHIO VALLEY TEL-SELL REGIONS.

50% 250,000 40%

+0.4 +0.8 +1.1

+0.2 +1.0 +1.2

POINTS VOLUME SHARE OF CSDS

POINTS VOLUME IN LRB*

POINTS VOLUME TOTAL LRB*

(EXCLUDING COLA)

POINTS DOLLAR SHARE OF CSDS

POINTS DOLLAR IN LRB*

POINTS DOLLAR TOTAL LRB*

(EXCLUDING COLA)

+9.4+3.5+0.8P O I N T SP O I N T SP O I N T S