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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.
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