Coca-Cola's CEO Presents At Barclays Back-To-School Conference (Transcript)

Coca-Cola Enterprises Inc. (CCE)

Barclays Back-To-School Conference Call

September 06, 2012, 12:45 pm ET


John Brock - CEO

Bill Douglas - CFO



Unidentified Analyst

Okay good afternoon. We are very pleased to have with us John Brock, the CEO of Coca-Coal Enterprises; the Chief Financial Officer, Bill Douglas and Thor Erickson of Investor Relations. We hope to hear some news about the company’s progress with the transformational acquisition that they made with Coke some years ago and see exactly how the company has performed over the years. And certainly in more recent times have managed rather prudently, through very difficult times and poor weather. We look forward to hearing the read of the latest trends in Europe and their vision for the business going forward. With that, I will hand it over to Don.

John Brock

Thank you very much and good afternoon everyone. We’re pleased to be with you today to provide an overview of Coca-Cola Enterprises, our long-term outlook and objectives and then to answer any questions you may have. Joining me today are Bill Douglas, our Chief Financial Officer who will discuss some of our financial highlights later and Thor Erickson, Vice President of Investor Relations.

Before we begin, I would like to ask you to take a look at the slide because our presentation will contain forward-looking comments that should be considered in conjunction with the cautionary language and our most recent annual report on Form 10-K and subsequent SEC filings and a copy of this information is available on our website. As you may know, Coca-Cola Enterprises is the pre-imminent Coca-Cola bottler in Western Europe and one of Coca-Cola’s largest global bottling partners.

Today, we’re building on a proven track record of success, a strong commitment to share owners in a clear operating framework that guides our company. We also are focused on capturing the growth opportunities before us and importantly doing so in the right way.

Since our transactions in 2010, almost exactly two years ago right now, we have unlocked significant share owner value and we've established a company that is clearly focused on driving growth and creating additional value for both our customers and our share owners. And let's take a quick look at the scope of CCE today.

We are company with 2011 net sales of $8.3 billion. We serve about 170 million consumers across seven countries and one principality who consume more than 30 billion servings of our products each year and importantly this total has been reached through six consecutive years of growth. We manufacture our products at 17 locations, each being a component of our pan-Europeans supply chain.

We have a total workforce of more than 13,000 people including one of the largest sales forces of any consumer packaged goods company in our markets. Most importantly CCE has proven that we have the size, the scope, the plans and the teams to continue to be an effective competitor in a very attractive category with the ability to navigate a challenging macroeconomic environment.

We are optimistic about our ability to create sustained long-term growth in line with our objectives. Much of the reason for this optimism is in fact our track record as well as the balanced nature of our business. For the past six years, we have focused on creating value for customers, consumers and share owners and we are clearly committed to doing this in the future.

We have managed and we have executed through dynamic and often challenging times to deliver sustained and balanced operating income growth. Over the past six years, we have achieved compound annual operating income growth of more than 8.5%. We have a solid and flexible balance sheet, strong free cash flow and a clear focus on creating value for each stakeholder of the company.

Our results and our actions clearly demonstrate our commitment to increasing share owner value. We continue to create value through increased dividends instituting a 23% increase earlier this year with a three-year compounded annual dividend growth of 22%. In addition, in 2011 we completed a $1 billion share repurchase program which started in late 2010 and this year, we then began a second $1 billion share repurchase program with a goal of at least $600 million in repurchases by the end of 2012.

Through these initiatives as well as the cash distribution from the 2010 transaction, we will have returned at least $5.5 billion to share owners by the end of 2012 which clearly demonstrates our focus on driving share owner value. At the core of this growth is a focused approach to our business. For more than five years, our work has been guided by a single global operating framework which creates a clear vision, clear priorities and clear financial objectives.

Our plans and our actions regarded by three strategic priorities, first to be a clear number one or a strong number two in very category where we chose to compete. Second to be customers' most valued supplier and third to create a winning inclusive culture that attracts, develops and retains a highly talented workforce.

For those of you who follow our company closely, these priorities are very familiar. Yet they are absolutely essential to our success as we continue to drive consistent long-term profitable growth. Clearly our primary focus is to drive sustainable value building growth. Now let's discuss the strategies and the initiatives that are at the very heart of that growth and that will enable us to continue to deliver value for stake owners.

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