corporate presentation - arca continental · corporate presentation 2015. presentation disclaimer...
TRANSCRIPT
![Page 1: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/1.jpg)
Corporate Presentation2015
![Page 2: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/2.jpg)
Presentation Disclaimer
During this presentation management may discuss certain forward-looking statements concerning Arca Continental’s future performance that should be considered as good-faith estimates made by the Companies.
These forward-looking statements reflect management expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact Arca Continental’s actual performance.
![Page 3: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/3.jpg)
One of the most profitable companies in the Industry
• +20% EBITDA margin
• Sustainable Dividend Pay Out Ratio + 50% Last 4 years
• Net Debt to EBITDA of 1.7x
3
![Page 4: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/4.jpg)
Revenues by Business Unit
13%
7%
12%
52%
2015*
16%
A geographic balanced business portfolio
*Pro forma Sales 2015 (MXP):
$82,442 4
![Page 5: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/5.jpg)
Coca Cola as a solid partner in our business structure
Arca Continental Control Group
71%Float BMV: AC*
20%The Coca-Cola Company
9%
![Page 6: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/6.jpg)
Best in class Corporate Governance
• Balanced Board of Directors (20 members, 5 independent)
• Majority shareholders only at Board level
• The Coca-Cola Company appoints one member of the Board
• Audit Committee comprised of independent members only
• No transactions with related parties
![Page 7: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/7.jpg)
Successful brand portfolio to satisfy every consumption occasion
Brands SKUs+40 +6007
![Page 8: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/8.jpg)
Investments focused on incremental volume initiatives
• Coolers
• Glass & Ref-Pet bottles
• IT
• New Facilities
2015CAPEXMxp$5,200
Million
14%
21%
1%
56%
2%
6%
Mexico Ecuador ArgentinaInalecsa USBokados
![Page 9: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/9.jpg)
Solid inorganic growth
2002
2007
2008
2010
2011
2012
2013
2014
Arca Merger
SnacksMexico and
Vending
ToniCorp
Nogales
Snacks Intl.& Santa
ClaraContal Merger
Argentina &Jugos del
Valle
Ecuador
2002 – 2014 M&A
9
2015
![Page 10: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/10.jpg)
The power of knowledge
• Consumer & Customer Insights
• Segmentation
• Price & Package Architecture
• Shopper solutions
• RGM
10
![Page 11: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/11.jpg)
Mexico
• Start date: 1926
• Sales volume (MUC) 1,000
• % KO volume 30
• Population served (MM) 30
• Start date: 2010
• Sales volume (MUC) 149
• % of KO volume 100%
• Population Served (MM) 15
• Start date: 2008
• Sales volume (MUC) 141
• % of KO volume 21%
• Population Served (MM) 9
Argentina Ecuador
11
• Start date: 2015
• Sales volume (MUC) 281
• % of KO volume 100%
• Population served (MM) 31
Arca Continental Territories
![Page 12: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/12.jpg)
Mexico´s opportunity is to develop stillbeverages portfolio
62% Non
Returnable
38% Returnable
10% On Premise2%
Vending
60% Traditional
14%C-Stores
7%Other
7%S-Markets 11%
Flavors
6% Stills
62% Colas
17%Jug
4%Water
48% Single-serve
52% Multi-serve
12
Channel Category
Format
Package
![Page 13: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/13.jpg)
Promoting the consolidation of the KO System in Latin America
• Acquired 25% minority stake in Bebidas Refrescantes de Nogales in northern Mexico
• Proximity of our territories allows further opportunities for synergies and find better ways to serve
CDF
Nayar
Colima
RicaBepensa
AC
KOF
Nogales
AC
KOF
Rica
13
![Page 14: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/14.jpg)
Argentina focusing on developstill beverages, single serve & cooler coverage
14
58% Non
Returnable
42% Returnable
2% On Premise
46% Traditional
1%C-Stores
31%Other
20%S-Markets
26% Flavors
1%Stills
65% Colas
8%Water
8%Single-serve
92% Multi-serve
Channel Category
Format
Package
![Page 15: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/15.jpg)
Ecuador developing cooler coverage & returnable single serve
15
80% Non
Returnable
20% Returnable
13% On Premise
65% Traditional
1%C-Stores
14%Other
7%S-Markets
30% Flavors
11%Stills
49% Colas
10%Water
29% Single-serve
71% Multi-serve
Channel Category
Format
Package
![Page 16: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/16.jpg)
Strong single-serve mix and returnable base
69% Non-
Returnable
31% Returnable
8% On Premise
58% Traditional
9%C-Stores
10%Other
4%S-Markets
6% Stills
74% CSDs
4%Jug
16%Water
40% Single-serve
60% Multi-serve
16
Channel Category
Format Package
2%Wholesalers
2015
![Page 17: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/17.jpg)
We have delivered outstanding resultsin South America
17
• Consistently creating value in Argentina, EBITDA when acquired:
Usd$95 million in 2010 to Usd$185 million in 2014
• 11 percentage points market share gain in Argentina
• Increasing execution and cooler coverage.
Argentina 45%, +20 p.p. Ecuador 47%, +26 p.p.
• All CAPEX investments made from cash generated from operations
![Page 18: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/18.jpg)
Strong brand portfolio
(2007) (2013) (2013)
• 3rd largest snack brand in Mexico, 40 year history
• Sales tripled in six years
• Plan to expand nationwide
• One of the largest distribution networks
• 40 year history
• Strong position in the Ecuadorian market
• 2nd largest player at a national level
• Over 90 years history
• Leading regional brand
• #1 brand in NY metro area
• USD$7 billion market size in regions served
![Page 19: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/19.jpg)
High potential growth opportunity bases on strategic adjacencies to our Core
• Complementary to our core business
• Expand snack business in Mexico under Bokados and complements with Wise
• Strengthen our presence in the US and Ecuador
USD$ 350 MM in 2014
(8% of Revenues)
19
![Page 20: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/20.jpg)
An aggressive Direct to Home expansion is building loyalty with our consumers
4.1
4.5
DTH SALES(MUC)
2013 2014
226
336
DTH ROUTES
2013 2014
+11%
+49%
• Leverage our Jug water business to sell other categories
• Jug Water currently reach 900,000 households
• Opportunity to introduce new categories and brands
![Page 21: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/21.jpg)
Exports capitalizes a$104 MM USD growing market
+6x vs 2005
2005 2006 2007 2008 2009 2010 2011 2012
2.0 2.94.3 4.4
6.69.0
10.6
3.1
3.94.0
4.54.9
5.2
6.4
6.8
Coca-Cola (Nostalgia)
Exports
6.9
13.0
2013
7.7
13.0
2014
![Page 22: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/22.jpg)
Performing is worthless without respecting our environment
WATER
**2014
1.68 Water Lts. /Beverages Lts.
14% vs 2010Goal of 1.5 Water LTS. / Beverages Lts.
RECYCLING
** 2014
38% of PCR
26,000 Tonsof resin consumed.
ENERGY
**2014
22.4 G CO2 /Beverages Lts.
11,000 MWHSavings in 2014
22
![Page 23: Corporate Presentation - Arca Continental · Corporate Presentation 2015. Presentation Disclaimer ... •The Coca-Cola Company appoints one member of the Board •Audit Committee](https://reader030.vdocuments.us/reader030/viewer/2022040400/5e714ad1b9989546b27e857b/html5/thumbnails/23.jpg)
Key Takeaways
• Clear Vision and excellence in execution
• Track record in creating shareowner value
• Financial strength and flexibility
• World-class Corporate Governance and professional management team
• Best-in-class production anddistribution capabilities
• Solid M&A and integration capacity, delivering synergies
• Sustainability and Social Responsibility