Market Overview

Coca-Cola European Partners (CCEP) Capital Markets Day 12 September 2018


CCEP is hosting a capital markets day for institutional investors and
analysts in Wiesbaden, Germany, today and tomorrow. The meeting is
hosted by Chairman Sol Daurella, Chief Executive Officer Damian Gammell
and Chief Financial Officer Nik Jhangiani.

CCEP announces a new share buyback programme of €1.5 billion
alongside an intent to increase the Q4 2018 interim dividend payout
ratio from 45% to 50%. CCEP is also announcing mid-term financial
objectives and revising full year 2018 outlook guidance, as detailed

Damian Gammell, Chief Executive Officer, said:

"Two years ago we created CCEP, now the world's largest independent
Coca-Cola bottler by net revenue. During this time, we have reset the
base for profitable growth, delivered on our merger synergy commitments
while building for the future. CCEP was always about a bigger and bolder
vision beyond the merger. We have the scale, the right operating model
and the right talent. We have a realistic and exciting long-term view of
the growth opportunity in our markets, having mapped out a vision for
the next ten years. We know that winning today allows us to win tomorrow
for all of our stakeholders. So we are investing now in core
capabilities that will support our growth and set us apart to win.

"Shorter term, I am particularly pleased with how our teams across Great
Britain, Germany and Northern Europe have embraced the positive
challenges brought by great weather. The strong performance allows us to
slightly improve our full year outlook, despite softer summer trading in
Spain and France.

"This is further endorsement of the creation of CCEP, which alongside
today announcing annual growth objectives over the mid-term and our
first share buyback programme, collectively demonstrate our ability to
consistently deliver shareholder value as we manage a rich portfolio of



The company has approved a €1.5 billion(1) share buyback
programme to reduce the share capital of the company. The buyback
programme will begin as soon as possible with up to €500 million of
shares repurchased in 2018 subject to trading volumes. The value of the
programme may be adjusted depending on economic, operating, or other
factors, including acquisition opportunities.

The buyback programme will be carried out on the New York Stock Exchange
and Euronext Amsterdam and will be effected within certain pre-set
parameters and in accordance with the general authority to repurchase
shares granted by shareholders at the company's Annual General Meeting
on 31 May 2018. CCEP intends to effect the buyback programme in
accordance with the EU Market Abuse Regulation 596/2014. The maximum
number of ordinary shares authorised for repurchase at the company's
2018 Annual General Meeting is 48,507,819. All shares repurchased as
part of the buyback programme will be cancelled.

Subject to Board approval, the company is also announcing its intention
to increase the Q4 2018 interim dividend payout ratio from 45% to 50%.

(1) Existing shareholder authority to buy back shares expires at the end
of the 2019 Annual General Meeting or, if earlier, the close of business
on 28 June 2019. The company expects to seek further approval from
shareholders to buy back shares at subsequent Annual General Meetings.


CCEP now expects revenue growth of approximately 2% to 2.5% and
operating profit growth at the top end of the previously stated range of
6% to 7%. Each of these growth figures is on a comparable and FX-neutral
basis when compared to 2017 comparable results. This excludes the impact
of incremental soft drinks industry taxes, which are expected to add
approximately 2% to 2.5% to revenue growth and approximately 3.5% to 4%
to cost of goods growth.

CCEP now expects diluted earnings per share (EPS) growth to be in the
range of 7% to 8%, on a comparable and FX-neutral basis. At recent
rates, currency translation is expected to have a slightly negative
impact on 2018 full-year diluted EPS.

The comparable effective tax rate for 2018 is expected to be
approximately 25%. Weighted average cost of debt is expected to be
approximately 2%.

CCEP remains on track to achieve pre-tax run rate merger synergies of
€315 million to €340 million by mid-2019. Further, CCEP expects to have
realised at least 80% of the target by year-end 2018 and a run rate of
approximately 100%.

CCEP now expects 2018 free cash flow of approximately €1 billion,
including the expected benefit from improved working capital of
approximately €200 million, offset by the impact of restructuring and
integration costs. Capital expenditures are expected to be at the top
end of the previously stated range of €525 million to €575 million,
including approximately €75 million of capital expenditures related to

Restructuring cash costs to achieve the aforementioned merger synergies
are expected to be approximately 2.25 times expected savings and include
cash costs associated with pre-transaction close accruals. Given these
factors, currency exchange rates, our outlook for 2018 and the buyback
of up to €500 million in 2018, CCEP expects year end net debt to
adjusted EBITDA for 2018 to be towards the low-end of our target range
of 2.5 to 3 times. Further, CCEP expects Return on Invested Capital
(ROIC) to improve by approximately 80 basis points.

  • Low single digit revenue growth
  • Mid-single digit operating profit growth implying c.20 basis points
    operating profit margin improvement
  • Mid-single digit diluted EPS growth, excluding share buyback
  • Return on invested capital improvement of c.40 basis points
  • Free cash flow of at least €1 billion (after c.4.5% capital
    expenditure as a % of revenue)

CCEP also confirms the long-term capital structure target of 2.5 to 3.0
times net debt to adjusted EBITDA.

Growth and improvement measures are each comparable and FX-neutral. The
revised 2018 outlook and mid-term annual financial objectives should be
read in conjunction with the note regarding the presentation of
alternative performance measures.


CCEP will webcast the main presentation live through its website,,
beginning at 13:30 CEST, 12:30 BST, and 07:30 EDT. This main
presentation is expected to last approximately two hours.

CCEP will also webcast a Chairman's address from Sol Daurella, and a
panel Q&A session, beginning at 17:15 CEST, 16:15 BST, and 11:15 EDT.
This is expected to last approximately one hour.

A replay and transcript of both sessions will be available at
as soon as possible. A copy of the main presentation will be available
through the website on the home page and under the Investors section.


Coca-Cola European Partners plc (CCEP) is a leading consumer packaged
goods company in Europe, producing, distributing and marketing an
extensive range of non-alcoholic ready-to-drink beverages and is the
world's largest independent Coca-Cola bottler based on revenue.
Coca-Cola European Partners serves a consumer population of over 300
million across Western Europe, including Andorra, Belgium, continental
France, Germany, Great Britain, Iceland, Luxembourg, Monaco, the
Netherlands, Norway, Portugal, Spain, and Sweden. The company is listed
on Euronext Amsterdam, the New York Stock Exchange, Euronext London, and
on the Spanish stock exchanges, and trades under the symbol CCE. For
more information about CCEP, please visit
and follow CCEP on Twitter at @CocaColaEP.


This document may contain statements, estimates or projections that
constitute "forward-looking statements" concerning the financial
condition, performance, results, strategy and objectives of Coca-Cola
European Partners plc and its subsidiaries (together "CCEP" or the
"Group"). Generally, the words "believe," "expect," "intend,"
"estimate," "anticipate," "project," "plan," "seek," "may," "could,"
"would," "should," "might," "will," "forecast," "outlook," "guidance,"
"possible," "potential," "predict" and similar expressions identify
forward-looking statements, which generally are not historical in nature.

Forward-looking statements are subject to certain risks that could cause
actual results to differ materially from CCEP's historical experience
and present expectations or projections. As a result, undue reliance
should not be placed on forward-looking statements, which speak only as
of the date on which they are made. These risks and uncertainties
include but are not limited to those set forth in the "Risk Factors"
section of the 2017 Annual Report on Form 20-F, including the statements
under the following headings: Risks Relating to Consumer Preferences and
the Health Impact of Soft Drinks; Risks Relating to Legal and Regulatory
Intervention (such as the impact of sugar taxes being implemented in a
number of countries in 2018 and the development of regulations regarding
packaging); Risks Relating to Business Integration and Synergy Savings;
Risks Relating to Cyber and Social Engineering Attacks; Risks Relating
to the Market (such as customer consolidation); Risks Relating to
Economic and Political Conditions (such as continuing developments in
relation to the UK's exit from the EU); Risks Relating to the
Relationship with TCCC and Other Franchisors; Risks Relating to Product
Quality (such as shortages of raw materials); and Other Risks.

Due to these risks and uncertainties, CCEP's actual future results,
dividend payments, and capital and leverage ratios may differ materially
from the plans, goals, expectations and guidance set out in CCEP's
forward-looking statements. Additional risks and uncertainties that may
impact CCEP's future financial condition and performance are identified
in filings with the SEC which are available on the SEC's website at
CCEP does not undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as required under applicable rules,
laws and regulations. CCEP assumes no responsibility for the accuracy
and completeness of any forward-looking statements. Any or all of the
forward-looking statements contained in this filing and in any other of
CCEP's respective public statements may prove to be incorrect.


We use certain alternative performance measures (non-GAAP performance
measures) to make financial, operating and planning decisions and to
evaluate and report performance. We believe these measures provide
useful information to investors and this document contains forward
looking alternative performance measures to allow investors to better
analyse our business performance and allow for greater comparability. We
are not able to reconcile forward looking non-GAAP information to
reported measures without unreasonable efforts because it is not
possible to predict with a reasonable degree of certainty the actual
impact or exact timing of items that may impact comparability during
future periods.

The alternative performance measures included herein do not replace the
directly reconcilable GAAP measure. Refer to pages 14 –21 of our 2017
Annual Report issued on 15 March 2018, which detail our non-GAAP
performance measures and reconciles, where applicable, our 2017 and 2016
results as reported under IFRS to the non-GAAP performance measures
included in this presentation.

For purposes of this document, the following non-GAAP performance
measures are defined:

‘Comparable' represents results excluding items impacting
comparability. Items impacting comparability include restructuring
charges, merger and integration related costs, out of period
mark-to-market impact of hedges, litigation provisions and net tax items
relating to rate and law changes. Such items are excluded from our
comparable results in order to provide a better understanding of
business performance and allow for greater comparability. For 2017
periods, comparable includes final acquisition accounting related
adjustments in connection with the Merger. Comparable volume is also
adjusted for selling days.

‘Fx-neutral' represents the comparable results excluding the
impact of foreign exchange rate changes. Foreign exchange impact is
calculated by recasting current year results at prior year exchange

‘Free cash flow' is defined as net cash flows from operations,
less capital expenditures and interest paid, plus proceeds from capital
disposals. Management utilises free cash flow as a measure of the
Group's cash generation from operating activities, taking into account
investments in property, plant and equipment and non-discretionary
interest payments.

‘Adjusted EBITDA' is defined as profit after tax plus taxes, net
finance costs, non-operating items, depreciation, amortisation and
adjusted for items impacting comparability.

‘Return on invested capital' or ‘ROIC' is defined as comparable
operating profit after tax divided by the average of opening and closing
invested capital for the year. Invested capital is calculated as the
addition of borrowings and equity less cash and cash equivalents.

Dividend payout ratio' is defined as dividend per share divided
by comparable diluted earnings per share (a non GAAP performance

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