Corporate Presentation

Corporate Presentation
2015
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.
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 0.5x
3
With geographical diversified BU’s through all America
12%
12%
2014
68%
8%
Sales (MXP) 2014:
Revenues by Business Unit
$61,957
4
Coca Cola as a solid partner in our business structure
Arca Continental
Control Group
71%
Float BMV: AC*
20%
The Coca-Cola Company
9%
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
Successful brand portfolio to satisfy every
consumption occasion
Brands
+40 +600
SKUs
7
Investments focused on
incremental volume initiatives
• Coolers
• Glass & Ref-Pet bottles
• IT
• New Facilities
2%
6%
14%
21%
CAPEX
2015
56%
1%
Mxp$5,200
Million
Bokados Mexico Inalecsa Ecuador Argentina
US
Strong financial performance
SALES
NET PROFIT
(MM Mxp)
EBITDA
(MM Mxp)
60,359 61,957
(MM Mxp)
6,510
13,643
12,845
5,973
13,370
15,273
+2.6%
+9.0%
+14.2%
2013 2014 1Q14 1Q15
1,162
1,300
+12.0%
2013 2014 1Q14 1Q15
+6.2%
2,654
2,961
+11.6%
2013 2014 1Q14 1Q15
9
Solid inorganic growth
2002 – 2014 M&A
2014
2013
2012
2011
2010
2008
2007
2002
Arca
Merger
Snacks
Mexico and
Vending
Contal
Merger
ToniCorp
Nogales
Snacks Intl.
& Santa
Clara
Ecuador
Argentina &
Jugos del
Valle
10
The power of knowledge
• Consumer & Customer Insights
• Segmentation
• Price & Package Architecture
• Shopper solutions
• RGM
11
Beverage Operations
Mexico
• Sales volume (BUC)
• % KO volume
• POS (thousand)
• Cooler coverage
Argentina
1.0
30
373
79%
Ecuador
• Start date: 2008
• Sales volume (MUC)
• % of KO volume
• Cooler coverage
• Start date: 2010
141
21%
45%
• Sales volume (MUC)
• % of KO volume
• Cooler coverage
149
100%
47%
12
Mexico´s opportunity is to develop still
beverages portfolio
7%
2% S-Markets
10%
Vending
6%
11%
On Premise
Stills
Flavors
4%
Water
14%
C-Stores
17%
Jug
Channel
Category
7%
Other
60%
62%
Traditional
Colas
Format
48%
Single-serve
52%
Multi-serve
38%
Returnable
62%
Non
Returnable
Package
13
Promoting the consolidation
of the KO System in Latin America
Nogales
CDF
AC
AC
Nayar
Bepensa
Rica
Colima
• 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
KOF
KOF
14
Argentina focusing on develop
still beverages, single serve & cooler coverage
2%
20%
1%
1%
On Premise C-Stores
Stills
S-Markets
31%
Other
26%
8%
Flavors
Water
Channel
Category
46%
65%
Traditional
Colas
8%
Single-serve
Format
42%
Returnable
58%
92%
Non
Returnable
Multi-serve
Package
15
Ecuador developing cooler
coverage & returnable single serve
13%
7%
11%
On Premise
S-Markets
1%
C-Stores
Stills
30%
10%
Flavors
Water
14%
Other
Channel
Category
65%
49%
Traditional
Colas
Format
20%
29%
Returnable
Single-serve
80%
71%
Non
Returnable
Multi-serve
Package
16
We have delivered outstanding results
in South America
• Consistently creating value in Argentina,
EBITDA when acquired:
Usd$95 million in 2010 to Usd$185 million in 2014
• Increasing execution and cooler
coverage.
Argentina 45%, +20 p.p.
Ecuador 47%, +26 p.p.
• All CAPEX investments made from cash
generated from operations
• 11 percentage points market share gain
in Argentina
17
Strong brand portfolio
(2007)
•
3rd largest snack brand in
Mexico, 40 year history
•
Sales tripled in six years
•
Plan to expand nationwide
•
One of the largest
distribution networks
(2013)
(2013)
•
Over 90 years history
•
40 year history
•
Leading regional brand
•
•
#1 brand in NY metro area
Strong position in the
Ecuadorian market
•
USD$7 billion market size in
regions served
•
2nd largest player at a
national level
High potential growth opportunity
bases on strategic adjacencies to our Core
USD$ 350 MM in 2014
(8% of Revenues)
• Complementary to our core
business
• Expand snack business in
Mexico under Bokados and
complements with Wise
• Strengthen our presence in
the US and Ecuador
19
An aggressive Direct to Home expansion
is building loyalty with our consumers
• Leverage our Jug water business
DTH SALES
DTH ROUTES
(MUC)
336
4.5
to sell other categories
• Jug Water currently reach
900,000 households
• Opportunity to introduce new
categories and brands
226
4.1
+49%
+11%
2013
2014
2013
2014
Exports capitalizes a
$104 MM USD growing market
Exports
+6x vs 2005
Coca-Cola (Nostalgia)
6.9
7.7
13.0
13.0
2013
2014
6.8
6.4
5.2
4.5
3.9
3.1
2005
4.9
4.0
2.0
2.9
2006
2007
4.3
4.4
2008
2009
10.6
6.6
2010
9.0
2011
2012
Performing is worthless without
respecting our environment
RECYCLING
WATER
ENERGY
38%
26,000 Tons
1.68
14% vs 2010
22.4
11,000 MWH
of resin consumed.
Goal of 1.5 Water LTS. / Beverages Lts.
of PCR
** 2014
Water Lts. /
Beverages Lts.
**2014
G CO2 /
Beverages Lts.
Savings in 2014
**2014
22
Key Takeaways
•
Clear Vision and excellence in
execution
•
Track record in creating shareowner
value
•
•
Financial strength and flexibility
•
Best-in-class production and
distribution capabilities
•
Solid M&A and integration capacity,
delivering synergies
•
Sustainability and Social
Responsibility
World-class Corporate Governance
and professional management team
CONTACT US AT:
[email protected]
[email protected]
[email protected]
www.arcacontal.com