Coca-Cola Amatil | Home - m ANNUAL GENERAL MEETING€¦ · PT Coca-Cola Bottling Indonesia and PT...

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Presentation to Shareholders

15 May 2019

2019ANNUAL GENERAL

Ilana Atlas, Chairman

Alison Watkins, Group Managing Director

MEETING

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Coca-Cola Amatil advises that these presentation slides and any related materials and cross referenced information, contain forward looking statements which may be subject to significant uncertainties outside of Coca-Cola Amatil’s control.

No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based.

Actual future events may vary from these forward looking statements and you are cautioned not to place reliance on any forward looking statement.

DISCLAIMER

Coca-Cola Amatil 2019 Annual General Meeting 2

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GENERAL MEETING2019 ANNUAL



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ADDRESSCHAIRMAN’S


4Coca-Cola Amatil 2019 Annual General Meeting

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PRESENTATION

GROUP MANAGING DIRECTOR'S

Alison Watkins, Group Managing Director


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COCA-COLA AMATIL GROUP LEADERSHIP TEAM

Alison WatkinsGroup Managing Director

Martyn RobertsGroup Chief Financial Officer

Betty IvanoffGroup General Counsel

Kate MasonGroup Director, People & Culture

Chris SullivanGroup Director, Partners & Growth

Debbie NovaGroup Chief Information Officer

Liz McNamaraGroup Director, Public Affairs, Communications & Sustainability

Kadir GunduzManaging Director,Indonesia & Papua New Guinea

Chris LitchfieldManaging Director, New Zealand & Fiji

Shane RichardsonManaging Director, Alcohol & Coffee

Peter WestManaging Director, Australian Beverages


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COCA-COLA AMATIL – OUR PEOPLE


We know that our success as an organisation depends on our people. We are proud of our culture and values, and the distinctive and positive contribution our people make.

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PERFORM: OUR PLANS REFLECT THREE STRATEGIC THEMES


Strengthening category leadership position Leading beverage brands Innovative marketing to drive equity and sales Evolving portfolio that adapts to changing consumer preferences

LEAD

Step change in productivity and in-market execution World-class customer servicing capability Route to market that provides customer diversification and real

competitive advantage Effective leverage of our large-scale, low-cost manufacturing, sales and

distribution capability

EXECUTE

PARTNERBetter alignment with The Coca-Cola Company and our other partners Shared vision of success and aligned objectives Joint plans for growing system profitability Balanced share of risk and rewards

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SEGMENT EBIT CONTRIBUTIONS


Underlying EBIT $ million FY18 FY17Change

%

% of Groupunderlying

EBIT

Australian Beverages 376.1 412.6 (8.8)

New Zealand & Fiji 112.4 104.8 7.3

Indonesia & Papua New Guinea 85.1 90.9 (6.4)

Alcohol & Coffee 55.7 49.7 12.1

Corporate & Services 5.2 20.3 (74.4)

Total Continuing Operations 634.5 678.3 (6.5)

59.3%

17.7%

8.8%

0.8%

13.4%

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GROW: WE HAVE MULTIPLE GROWTH PATHWAYS


GROWTH WITHIN

GROWTH BETWEEN

GROWTH BEYOND

Additional growth within our businesses

Leveraging and extending brands and capabilities (eg our route-to-market)

Building and adding new brands and channels

Additional growth between our businesses

International coffee (eg Indonesia)

International beer and rum (eg Fiji to Australia and New Zealand)

Growth beyond our current businesses

Amatil X

Additional Coca-Cola territories

Extending Amatil brands and capabilities to new geographies

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STRONG ORGANISATION: UNDERPINS ALL OUR PLANS


Develop a fit for purpose organisational and governance structure Major restructure of our People and Culture and our IT teams to embed a

“One Amatil” approach. Continue our group wide approach to all our owned and leased property

arrangements

FIT FOR PURPOSE

Drive leader led growth Leadership capability development Invest in our people and create opportunities for growth (eg Indonesian

Step and Step Up programs) Build capability to share across all our geographies

LEADERSHIP

TRUST AND REPUTATION

Build trust and our reputation with stakeholders Binding sustainability goals for 2020 Improvement in employee engagement over two years

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OUTLOOK


2019 OUTLOOK

We remain committed to our Shareholder Value Proposition targeting a return to delivery of mid-single digit earnings per share growth from 2020

This will depend on the success of revenue growth initiatives in Australia, Indonesian economic factors and regulatory conditions in each of our markets

TARGET FROM 2020 AND BEYOND

2019 will be the second year of a two-year transition phase for the Group.

Australian Beverages: we will be positioned for growth in 2020 with the completion of the additional $10 million of investment in our Accelerated Australian Growth Plan to increase our salesforce and, with container deposit schemes in NSW and Queensland substantially embedded by the end of 2019

Indonesia: we are encouraged by the volume growth we delivered from April 2018 and will continue to deliver our Accelerate to Transform strategy with additional direct marketing expenditure to be invested in 2019; however macroeconomic conditions, weak Indonesian Rupiah, higher commodity costs and current consumer spending trends are expected to continue

New Zealand & Fiji, Papua New Guinea and Alcohol & Coffee: expected to deliver growth in line with our Shareholder Value Proposition

Corporate & Services: an EBIT loss of $10 to $12 million expected in line with the outlook provided in November 2018 due to lower property rental and services earnings, increased Group capability and investment in IT platforms

As part of our cost optimisation programs in Australian Beverages, we are expecting one-off costs in 2019 of up to $30 million

We are pursuing additional opportunities within our Property Division which may result in one-off gains in 2019, partially offsetting the one-off costs

NON-TRADING ITEMS

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OUTLOOK: CAPEX, DIVIDENDS AND BALANCE SHEET


CAPITAL EXPENDITURE

Balance Sheet to remain conservative with flexibility to fund future growth opportunities

Expecting to maintain strong return on capital employed

We will seek to maximise value for shareholders by pursuing additional opportunities within our Property Division

BALANCE SHEET

2019 Group capex expected to be similar to Group capital expenditure in 2018, reflecting the deferred payments from 2018 and continued deployment of capital in Indonesia, including a second affordable small sparkling pack line

Continue to target medium term dividend payout ratio of over 80 per cent

It is anticipated that franking will be at a lower level in the future due to the increasing proportion of earnings from outside Australia

DIVIDENDS

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GENERAL MEETING2019 ANNUAL


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Annual Reports

ITEM 1

15

To consider the Annual Report, the Financial Report and the Reports of the Directors and of the External Auditor for the year ended 31 December 2018.

There is no vote for this item.

Coca-Cola Amatil 2019 Annual General Meeting

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Adoption of FY2018 Remuneration Report

ITEM 2


To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“To adopt the Company’s Remuneration Report for the year ended 31 December 2018.”

Please note that the vote on this resolution is advisory only, and does not bind the Directors or the Company.

An explanatory note to this item appears on page 4 of the Notice of Meeting.

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Adoption of FY2018 Remuneration Report

ITEM 2


Proxy & Direct Votes

For Undirected Against Total

Resolution 1 520,700,208 1,024,431 12,462,659 534,187,298

% of vote 97.48% 0.19% 2.33% 73.78% of issued capital

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Re-Election of Board Endorsed Directors

ITEM 3


Mr Massimo (John) Borghetti, AO Mr Mark Johnson

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Item 3(a) – Re-election of Mr Massimo (John) Borghetti, AO

ITEM 3

19

• Independent

• Joined Board: December 2015

• Board Committees: Chairman of the People Committee, Member, Related Party Committee, Risk & Sustainability Committee and Nominations Committee

Background

Mr Borghetti was the Chief Executive Officer and Managing Director of the Virgin Australia Airline Group from May 2010to March 2019. Mr Borghetti has had over 40 years’ experience in the aviation industry, including a long career at Qantas, which included several senior positions, including Executive General Manager.

In addition to his directorship of Coca-Cola Amatil, he is a Director of the Art Gallery of the NSW Board of Trustees.


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Item 3(a) – Re-election of Mr Massimo (John) Borghetti, AO

ITEM 3




Resolution 2(a)

522,354,274 1,057,558 12,283,182 535,695,014


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Item 3(b) – Re-Election of Mr Mark Johnson

ITEM 3

21

• Independent

• Joined Board: December 2016

• Board Committees: Chairman of the Audit and Finance Committee, Member, Risk and Sustainability Committee, Related Party Committee and Nominations Committee.

Background

Mr Johnson was CEO and Senior Partner of PwC from July 2008 to June 2012 and held other senior positions (both internationally and in Australia) during his 30-year career at PwC, serving major clients in areas of audit, accounting, due diligence, fund raising and risk and governance.

In August 2018, Mr Johnson was appointed as a Commissioner of PT Coca-Cola Bottling Indonesia and PT Coca-Cola Distribution Indonesia, both being subsidiaries of the Company.

Mr Johnson is the Chairman of G8 Education Limited, and MH Premium Farms. He is also holds several directorships with owner-managed businesses and not-for-profit organisations.


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Item 3(b) – Re-Election of Mr Mark Johnson

ITEM 3




Resolution 2(b)

531,747,245 1,064,610 2,189,165 535,001,020


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Participation by Executive Director in the

2019-2021 Long Term Incentive Plan (LTIP)

ITEM 4

23

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That approval is given for the purposes of ASX Listing Rule 10.14 and for all other purposes, for the grant of performance share rights to Ms Alison Watkins, the Group Managing Director of the Company, under the Coca-Cola Amatil Limited 2019-2021 Long-Term Incentive Plan, as described in the Explanatory Notes that form part of this Notice of Meeting.”

An explanatory note to this item appears on pages 4-7 of the Notice of Meeting.


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ITEM 4




Resolution 3 524,641,993 1,024,132 9,801,495 535,467,620


Participation by Executive Director in the

2019-2021 Long Term Incentive Plan (LTIP)

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