Coca‑Cola Hellenic Bottling Company 2018 Integrated Annual Report
IN GOOD COMPANY 2018 Integrated Annual Report 2018 HIGHLIGHTS
VOLUME (m unit cases) 2,192 2017: 2,104
NET SALES REVENUE (€m) 6,657 2017: 6,522
COMPARABLE EBIT 1 (€m) EBIT (€m) 681 639 2017: 621 2017: 590
COMPARABLE EBIT MARGIN1 (%) EBIT MARGIN (%) 10.2 9.6 2017: 9.5 2017: 9.0
COMPARABLE NET PROFIT1, 2 (€m) NET PROFIT2 (€m) 480 447 2017: 450 2017: 426
COMPARABLE EPS1 (€) BASIC EPS (€) 1.31 1.22 2017: 1.23 2017: 1.17
ROIC (%) 13.7 2017: 12.4
CARBON EMISSIONS REDUCED PACKAGING RECOVERED ACROSS THE VALUE CHAIN FOR RECYCLING 25% 45% COMPARED WITH 2010 BASELINE
1. For details on APMs, refer to the Alternative performance measures section. 2. Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent. Strategic Report SR
Corporate Governance CG
Financial Statements FS About our report CONTENTS Swiss Statutory Reporting SSR The 2018 Integrated Annual Report (‘Annual Report’) consolidates Supplementary Information SI Coca‑Cola HBC AG’s UK and Swiss Strategic Report disclosure requirements while meeting 3 Our business the disclosure requirements for its 4 Chairman’s letter secondary listing on the Athens Exchange 6 Chief Executive Officer’s Q&A and the sustainability reporting standards. 10 Our stakeholders For more information about our Integrated 12 Market review Annual Report, see page 256. 14 Our business model 16 Our growth model More online 17 Our strategy and KPIs 24 Our 2025 sustainability commitments www.coca‑colahellenic.com 26 Our people 34 Our communities Navigating this report 40 Our consumers We are In Good Company with all 48 Our customers our stakeholders. 54 Partners in efficiency We have identified issues that we believe 63 Managing risk and materiality are relevant to each of our stakeholders 79 Viability Statement throughout the report, and have indicated 80 Financial review these through the following icons. 84 Segment highlights
Our people Corporate Governance Our communities 88 Chairman’s introduction to corporate governance 90 Board of Directors Our consumers 96 Corporate Governance Report Our customers 122 Directors’ Remuneration Report Partners in efficiency 145 Statement of Directors’ Responsibilities NGOs Financial Statements Shareholders 148 Independent Auditor’s Report 153 Financial Statements Governments 159 Notes to the Financial Statements The Coca-Cola Company Swiss Statutory Reporting 221 Report of the statutory auditor on Coca‑Cola HBC AG’s consolidated financial statements 227 Report of the statutory auditor on Coca‑Cola HBC AG’s financial statements 230 Coca‑Cola HBC AG’s financial statements 241 Report of the statutory auditor on the Statutory Remuneration Report 242 Statutory Remuneration Report Supplementary Information 246 Alternative performance measures 250 Assurance statement 253 Shareholder information Glossary CREATING VALUE FOR ALL STAKEHOLDERS IS CORE TO OUR STRATEGY AND LONG‑TERM SUCCESS. WE THEREFORE ENGAGE CONTINUOUSLY WITH OUR PEOPLE, CUSTOMERS, PARTNERS, SHAREHOLDERS, AND COMMUNITIES TO ENSURE THAT WE ARE FOCUSED ON FULFILLING THEIR NEEDS NOW AND IN THE FUTURE – THAT’S WHAT WE MEAN BY BEING ‘IN GOOD COMPANY’. OUR BUSINESS
We are generating strong Since we laid out our 2020 targets We remain focused on efficiency And we are cultivating We have the right teams in place Sustainable growth is core to revenue growth and in 2016, we have delivered in all we do, allowing our strong the potential of our people who are empowered to take our long-term success and to sustainable margin consistently at or above those revenue growth to drive improving and building trust with our intelligent risks and seize support that we launched new objectives. profitability. opportunities. 2025 sustainability expansion communities commitments this year. CURRENCY-NEUTRAL REVENUE GROWTH COMPARABLE EBIT MARGIN +5% on average +270bps 28,884 17 IN THE LAST THREE YEARS FROM 7.5% IN 2015 DIRECT EMPLOYEES NEW COMMITMENTS
See progress against our strategy See more on pages 54-62 See more on pages 26-33 See more on pages 24-25 on pages 18-23
Evolution of our portfolio UNDERSTANDING BRINGING The faster pace of innovation and launches helps us provide our customers OUR MARKETS BEVERAGES with the right packs, variants, categories and brands to achieve sustainable growth. e pac age formats We continue to invest in our 28 markets e categories a bra s TO LIFE See pages 40-47 for more aria ts of oca ola to grow volumes and create value. information lavours of other spar li g bra s lavours for a ults Other flavours
Emerging markets Route to market % of volume from new launches Currency-neutral ustomers and broader, d revenue growth 2018 with c eeper ships rout + 6.8% ion beverage portfolio. e-to elat r total See -m e r m ou pag ark Comparable EBIT ativ fro es 4 et or lue 8-5 ap margin 2018 ab va 3 pr oll re for oa 10.5% c tu S A IN m c ur ap M A G o h O c M P re us A S in s SC AC ICA f lp I I o e A F A rm Developing markets h R M WA N a M ti R o Currency-neutral W n G revenue growth 2018 A M + 11.9% M A IN RA A R M Comparable EBIT S N CA M N I AG M margin 2018 R B M R S A F 10.5% S N S C IG I R I IM S A R N RG RIN S N S C
Established markets C N R A A A S M I M M N C C S Currency-neutral IS R C C revenue growth 2018 N IC A A N N + 2.1% W S S A G A A I F C FF N S C Comparable EBIT F G SP R S RIN S M A R C margin 2018 R M R WA R B 9.7% A A M
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