Q3 2022 Coca-Cola Europacific Partners PLC Trading Statement Call

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[music].

Okay. So we should not be lies just be conscious of that for everybody in the room I'm I'm, sorry, well I know most of you if not all those yeah. So welcome here today.

And so those of you that joined US. This morning, we had a great market show singing Elsa and Tesco.

There are a couple of breaks such name and also the feature logistics or the back end of the day for those of you that are joining us this evening.

<unk>.

Basically we've got Wi Fi upon the screen. So if any if you haven't called that already his charm.

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Yeah.

Yes.

Okay.

So.

[laughter] so without any further forward looking statements. So I'll cover that and I'm going to hand over to Damien I'll see you.

Okay.

Yeah.

Yes.

So total revenues over who are passionate about Wi Fi code because everywhere. We go with the first question is what's the Wi Fi code and then Sarah said the first slide today is gonna be Wi Fi code. So.

I am very used to that so thank you for being here.

A little bit cozy.

We deliberately wanted to host you at our offices.

For two reasons I think it's great.

Great for people to see you here and it's also a lot cheaper than London hotel prices at the moment. So we felt it was a better use of our cash so I'm little bit cozy, but will take plenty of brakes.

And hopefully we'll get a chance to.

To get to a good Q&A session at the end of today, So I think well come on behalf of everybody at C. C. P.

I'm going to talk about today on all of my colleagues.

It is really represented by over 30, and 30000 weighted engaged and passionate employees at our business. So it's great to be the messenger.

But clearly that's built on a lot of people, who are with us today and spirit, but frankly, they're out making selling and moving all of our great brands as we tell our story today.

So just to the agenda.

I'm sure you've seen our Q3 results so I'll spend a little bit of time on that this morning.

Afternoon, and then we've got quite a lot to cover we deliberately.

Took the view that we have have been with you for quite a while a lot has happened on a lot is happening and we felt it was really good to get into some good detail around what we're passionate about as a business, but also for you to meet.

A lot of our colleagues who are running our business and driving a lot of the great results that we'll talk a little bit later.

So who do we meet today.

Shortly hand over to a great chair solve gorilla for some opening remarks.

I mean, a lot of our team of CCP.

To particularly thank menudo, whereas lenovo.

It's a chief marketing officer, the Coca Cola Company has taken time out of a very busy agenda to be with us today. So thank you for that Lenovo.

And clearly we're joined by a number of advisers in the room. Thank you some of our banks have joined us.

And particularly I'm very pleased for our shareholders that are here today. So thank you for being with US. So we're going to cover a lot as we go through each of the team will introduce themselves.

And tell you a little bit more about our <unk> story.

So before that I'd like to just hand over to solve for some opening remarks. Thank you. So.

[music].

Well. Thank you very much for for joining this capital markets day, and I want to join Damian and I. Welcome you all to this event I can't imagine a better way of starting this day are done with a market visit where I'm sure you've seen a great execution and also very important met some of our most tell.

Frontline people.

Thanks to them, that's all that we're going to explain to you today really happens they are the ones that make all this happen. So it was important for US that you also met them.

Well I am very proud of this business and what we have achieved since the formation of TCP in 2016 for all the value creation, we have achieved.

Is with this track record.

As well as with the acquisition of API I feel very confident very confident in the future of our business in spite of the uncertain times.

We have ahead of US and of course led by a great Great management team that we most of the world met are already have already met but some of them you are going to continue to meet today. So with this I pass back to Damian and I Hope you enjoy the meeting.

So.

The good news is sold will be with us.

All evening until late at night with Nick.

I think as the deal that we struck.

No.

So thank you so <unk>.

So just wanted where Q3, so I'm sure you've all had a chance to digest.

Digest, what was really another great quarter for <unk>. So we're really pleased with the results we could post today on top of that clearly it's a milestone to also take up our full year 2022 guidance.

Really across all of the performance indicators of our business and we've really had a very strong first half of the year and indeed that continued into Q3, which obviously gives us confidence as a management team to post a brighter outlook.

For the full year of 2022, raising our guidance on the topline bottomline, although I'm certainly myself, a next favorite topic, raising our free cash flow guidance, as well, which we're particularly happy with.

So clearly a great foundation for our capital markets Day, I did note that although it could be in the room that someone wrote that you've got to expect good results on the day of our capital markets day.

<unk> correct me, if we're wrong, but I think we set the date for this a year ago.

So it was good as we are or we didnt really predict that were going to come out with such a strong quarter and we certainly didn't predict that we'd be operating with some of the volatility that we'll talk about it as we go through today. So overall really happy with the Q3 results Great Foundation for another great year at TCP and clearly you know gives us a confidence as we've laid out.

A bigger and bolder.

Set of targets.

In the midterm, which we'll talk a little bit later so.

Right across the board strong revenue.

Momentum great profit momentum unclear.

Clearly great free cash flow.

It kind of goes back to what <unk> talked about as a business. We've got a very rich history I know a lot of you have been with us for a lot of that journey.

It really goes back to.

Two the fifteens.

The Genesis of our business with the Spanish bottling operations and the families who remain really committed shareholders today in our business.

All the way through a number of milestones, which all the state was the CCA deal.

And then obviously, we looked at the creation of Coca Cola European Partners.

And then I saw mentioned ill a really great deal at a great time, and I'm really happy Peters here to represent that deal the acquisition of API on around that as you can see in this slide.

Although they are very important milestones, particularly in the area of sustainability.

And also starting with a new journey, which starts today at our first capital markets day since 'twenty 2019.

This is a slide I'm, particularly pleased with because as we laid it out I think it tells a really good story about how quickly we've grown as a business, but more importantly, the value creation that is really at the essence of our culture at CCP.

We're firmly focused on creating value for our shareholders our customers and.

And clearly doing that in a sustainable way if you look back and again I'd point back to June 2013.

Quite a while ago in some ways, but in the history of the Coke system quite a short period of time.

Very big and bold moves by the Spanish bottlers to consolidate what was already probably held up as one of the best Coca Cola businesses in the world.

Families came together to form Iberian partners that took a business that was already in great shape to an even higher level and really was the catalyst for a bigger and bolder vision for Western Europe .

That vision really came together with the formation of Coca Cola.

European Partners, which took us to 13 countries with the consolidation of CCA and the German business, which has been a fantastic success as well as as we look back on CCP.

11 billion revenue $1 9 billion EBITDA and over 24000 colleagues.

Then we all know what the last couple of years are thrown at us as a business as people families.

And we've all got through that together during that period, we thought was a great idea to make this business even bigger.

The acquisition of API may have caught some of you by surprise at the time.

But as we will demonstrate today and as Youll hear from Peter a bit later, a fantastic acquisition for CCP and has really changed the footprint of our business not just in terms of our geography.

And our results are EPS, but also in terms of our culture and I think that's something we're excited about sharing a little bit more so a fantastic journey.

Where does that leave us today. So thank you again when NOLA for joining US maybe this is why he's here.

We are clearly the largest bottler by revenue so over 14 billion in revenues.

It's not really about that number for us for that those bring is a really strong.

Alignment with the Coca Cola company and that leads to investment decisions innovation decisions.

Clearly gives CCP a good seat at the table and allows us to have a great dialogue and continue to challenge ourselves on both sides of the relationship to make the system stronger across all of our markets.

So as we lay out today.

We've got a very clear strategy.

This goes back to our board meeting in the summer, where we took a couple of days out with all of our directors to really step back and look at where do we go now with C. C. P.

That followed on with a board meeting in Indonesia, which you'll hear a little bit about today from Peter what we really wanted to expose all of our directors to the opportunity and to some of the challenges that we see in our Indonesian business and that has led through to our last board meeting, which was in Heidelberg in Germany.

Meaning where we signed off and we talked a little bit about what we wanted to do strategically leading to today's meeting.

Which we obviously will share with you.

It's part of a journey next week, we will have I think Nick about 1000 of our suppliers.

And so we don't have a supplier day as you'll hear throughout this afternoon suppliers are a critical part of our journey. So the next audience will share. This story with will be our suppliers' next week.

Clearly, we have high expectations of how they will help us achieve our goals.

At the end of November in London, we'll have approximately a 150 over senior leaders globally.

Coming together just spent two days together to really work on how we bring this into action into 'twenty three and beyond.

So as we look at our strategy it will clearly make us more diverse I'll talk a little bit about that later, we've committed to a more accelerated top and bottom line growth in the mid term.

You'll hear from Ana today about how we're continuing to make our business more sustainable we have a lot to do but we are leading in that space.

Have even greater relevance as I talked about with the Coca Cola company, but also with a great partner and monster.

We are very very committed to returning more value to our shareholders. A Nick is going to talk about that at the end of the day I think it's a good way to finish them.

Clearly you're going to see and hear from them, while I'm very looking to lead a great group of diverse talented and inclusive leaders and all of that gave us the confidence to lay out today are more ambitious.

Midterm objective so from a revenue perspective.

Taking it up to that 4% number.

Seven.

Again free cash flow I think a great number of $1 7 billion minimum.

We're committed to our deleveraging we've been very consistent about that before the IPO ideal and after the API deal.

We have raised our target on our ROIC.

Our capex is.

An important driver of our business, but we're very comfortable in the range of 4% to 5% Nick will talk a little bit about that later.

And there's always a progressive dividend policy, which we maintained at 50%, which I think is great news for all of our shareholders.

So that's the context in which I'll just share a little bit more about why do we believe in that ambition.

And where do we see that coming from in terms of value creation.

So it's a great category and I think Manila will talk a little bit about that later, but on the backbone of that I just wanted to come back on some of the commitments. We made to you and to all of our shareholders in 2016, when we created CCP.

Clearly, we laid out that we believe diversification of our portfolio.

All of our geography was a key value creation enabler.

That led to a lot of value, which we'll talk about later being returned to our shareholders.

We took some bold decisions early on whether that was on promo pricing in places like Belgium, France or here in GB.

We took a lot of cost out we'll talk a little bit about that later.

And clearly it led to the amatil deemed impassable both from a relationship perspective, but also from a funding perspective.

And our belief in the management team that we could really extract value out of the AMETEK business.

So just on diversification clearly if you go way back when.

We're quite a narrow footprint in western Europe , the business wasn't growing we turned that around like a belief across the system under the Coca Cola company to allow us to get bigger. So now if you look at our geographies you've got a nice mix of obviously key.

Profitable European markets, Australia, Great business, New Zealand, a great business and.

In Indonesia.

Which we see as a fantastic mid to long term opportunity for significant growth and value creation.

Below that we've expanded our portfolio in our categories and our packs. Both of those are represented on this slide and volume.

But clearly if you look at it in revenue it looks even more diverse as our smaller packs generate more revenue.

Some of those categories, particularly energy contributed a lot more revenue than they do on volume.

We remain a very balanced bottler.

Pre COVID-19, we were probably more in the 50 50 range of revenue between retail and away from home, that's coming back and we've seen that come back very strongly in the second half of 2022.

And obviously, we're a much more diverse company now adding in the great markets of API, leading to over 30000 engaged and committed employees. So a very nice diverse and growing business.

What does that achieved in terms of shareholder value creation.

50% <unk>.

5 billion in cash returns.

I am very pleasingly, a consistent 10% EPS CAGR.

On the left of the slide you can see what I talked about starting back with our European journey pre 2015, Western Europe was in revenue decline those of you who followed the creation of CCP will remember that one of our commitments, which will return western European markets to growth let's.

Let's say there was a bit of skepticism about down in the room at the time.

Probably quite rightly, so, but we addressed that with great momentum.

Moving into 2020.

Obviously, we dealt with the Covid situation and a big Thank you to all our employees who navigated that.

Extremely well and we're seeing a growth returning obviously the comps help but back ahead of 2019 and I think that's critically important.

That led to a very good earnings per share <unk>.

Progression free cash flow, which we're very passionate about and obviously significant shareholder returns over time and that's something obviously, we're committing to as we go forward.

I talked a little bit about some of the decisions. We took I mean, we could spend a long time going through everything but I just wanted to call. It some of the bold decisions that are locked that shareholder value creation and our topline growth.

We exited a lot of.

Underperforming categories, particularly bulk water we.

We got rid of a lot of lossmaking Skus Jose Antonio will talk a little bit about that later.

We got much smarter around making more money in the home channel nickel.

Nick will touch on that a little bit later, but clearly when COVID-19 hit we quickly realize as a bottler, who has a fantastic away from home business at 50% of our revenues that for a period of time, we were going to be a retail only butler.

Very different for us to digest, none of us expect that over the last that long, but we quickly pivoted got all of our leadership together and said, okay. We're going to be a home market business. We thought for six months, let's be honest no. One expected it was going to go on that long.

And that really helped us to extract a lot more value out of our retail business and for our customers to extract a lot more value.

So as we sit here today, the profitability mix between retail and away from home is much more balanced than we saw pre COVID-19 and that gives us a lot of confidence going forward.

Clearly with the Coke company, we went back to where we make money so.

<unk> doubled down on sparkling what's more selective around innovation and getting back to what we know and drives long term value around immediate consumption.

<unk> premium in smallpox increasing in a mixed considerably over at that time and clearly as you'll hear from Peter later some of the learnings from our European journey, we shared with Australia, allowing us to do something that certainly when I was working in Australia was unheard of which is to take down our promotional intensity and that's worked and Peter will talk.

To that a little bit later, and we continue to create value for our customers recognizing that we do operate in quite a challenging environment, particularly with some of the new buying groups.

But yes, we've navigated that well it has led to some disruption, but clearly our eye is on the mid to long term value creation, and sometimes you got to get into those difficult and challenging conversations and we did that.

When you look at where that lands in our P&L.

One of the key metrics for US was clearly to drive our revenue per unit case.

And I'm, particularly happy that even when we lost a lot of our away from home revenue and volume we could come out of code with significant unit case growth. So that's clearly a supported.

A lot of our bottom line growth and is built on the back of the smallpox premium packs.

And sparkling and energy categories and T, where we know we can drive that margin.

But wasn't all about the top line.

<unk>.

Undertaken a number of structural changes in our European business in particular.

We've delivered on multiple commitments around cost savings whether that was on the back of the original CCP transaction almost recently on the API transaction and clearly in our midterm guidance. We've also set out another ambition to continue to help make our company more efficient and more productive as we look at investing for growth.

Over the mid to long term.

Just some numbers opex in Europe , only down close to 25%.

And clearly as a percentage of revenue overall, we continue to target that below 25%.

Whereas the come from clearly we've taken some big steps in Europe , particularly in markets like Germany.

We've got smarter using data and analytics to drive down our trade marketing expenses.

Clearly COVID-19 told us all that we don't have to get on the plane at least five days a week.

And we've cut a lot of or unnecessary opex.

Procurement has been a big driver of value on Ralph and the team have done a wonderful job, leading that and that flows into that meeting next week with our suppliers. So we're going to keep.

Using procurement as a key value driver at TCP and as you'll see a little bit later from Jose Antonio across our supply chain.

Again, using mainly technology tools, becoming a more efficient and productive operation.

So just onto amatil.

Great deal at the right time, and a challenging time to pull off a deal of that scale.

From a virtual perspective, but we have great belief in the fundamentals of Australia and New Zealand.

And we have a great belief in the opportunity of Indonesia.

And we're very fortunate that we had great leadership in place pre deal, particularly with Peter and his team that gave us confidence that even in a virtual world. We could start act very quickly to extract value from the amatil deal in and you'll see that coming through in our results that gave us a stronger position with the Coca Cola company.

Multi geography Butler now global with a big Asian market.

Structurally a higher growth platform built on higher GDP population growth.

And obviously you know as we looked at it gave us access to emerging markets. It was immediately value creating for our shareholders.

And we had a lot of confidence that we could pay down that debt quite quickly nickel touch on that a little bit later, so a great deal.

At the right time on more to come on that later today.

So we are delivering value within a great category a growing category.

Category with good solid structural margins.

It's about 130 billion.

Of revenue opportunity when we look at our particular geographies.

Europe is growing about 3% on API is growing about eight.

So when you compare to a lot of categories in the CPG World.

It is dynamic it's growing it's profitable for us.

Most importantly, it's very profitable for our customers and I'll talk a little bit about that later.

Outpacing the rest of FMC G. So it is a leading category and thats driven by sparkling.

And that's on the back of a lot of innovation with zero sugar somewhat packaging innovation I talked about earlier stronger marketing and investment from the Coca Cola Company I'm curious also driven by energy on the back of a fantastic franchise with monster huge innovation great products.

And again, a great online activation base.

It's also interesting when you compared to some other categories beer.

Wine and spirits snacks, which have had a good one it's a super resilient category and continues to outpace.

Most categories in CPG and as we look at our success one of our benchmarks is are we creating more value for our customers nothing our competitors both on any other category and that's a benchmark we've held ourselves to since we created TCP and we continue to do so so we're not only generating revenue within air category.

We're generating more revenue than any other category across our.

Customers, particularly true in Europe , particularly true in Australia, New Zealand.

And it will be true in the future in Indonesia.

So that really makes us very strongly positioned.

As we look forward, we're pretty consistent around the pillars of our strategy.

Great beverages, Great service, great people and critically done sustainably for a better shared future ill just quickly touch on some highlights under each of these areas.

So on great beverages.

We've consistently diversified our portfolio talked about that earlier, particularly around low or no sugar. Yeah. We've had a number of headwinds in Europe around sugar tax, which we've navigated probably quicker than we expected.

Return the category to even higher growth. So clearly that no sugar proposition is bringing people into the category.

As you'll hear from the NOLA later, we're blessed to have the world's best portfolio of brands.

We've got a lot more that we can choose from that are not currently present in our markets in Europe today.

We have a very strong share and I think that really differentiates CCP from a number of other businesses our sparkling share.

Is just over 58% so that gives us real relevance for our customers our share online as hard on in store.

I hear from David later, who will explain how we make that happen and why we're confident that will continue.

And unlike most CPG is we sell everywhere.

So we've got a very diverse route to market covering all channels from outwork hotels eating and drinking on the go transportation discounters retail online offline.

So this category. Unlike I think any other category is pervasive and more opportune occasions than any other any other business.

And clearly that supports a broader pack price architecture, which is critically important in the volatile environment, we operate today.

Because our business is not built on one or two packs, it's not built on one or two brands of one or two channels. So as we look forward.

The pricing opportunities.

Some of the risks, we see potentially an downgrading some of those concerns we have around the macro environment. We have got a stable of brands and packs that will allow us to navigate that and clearly deliver on that new more ambitious midterm guidance, we outlined this morning.

On the back of that obviously, our customers they like to make money on our brands, but they also want to make sure that they get the service that they deserve.

Good customer service levels over 90%.

We've been recognized by the Coca Cola Company with New Zealand, winning the Candler Cup, which is a great.

Award for any bottler to be recognized by the Coke company and voted on by the system is being the best bottler.

Zealand's took that award in 'twenty, one the Netherlands. This year were runners up so we came close but not close enough.

But we'll win our next year hopefully so that's the aim.

We've got the biggest salesforce over 10000 frontline I hope a lot of you had a chance to meet some of them today.

Passionate engaged I think the big difference from today to probably four or five years ago. Hopefully you felt that one there's a lot more information to there's a lot more technology and three there is a lot more diversity. So we're clearly trying to leverage that across those 10000 frontline sales force.

85% of our volume is now capture digitally.

It's a big step change so you can imagine the wealth of data and analytics that we can build off that and clearly we've always looked at this business in the long term and consistently invested for growth that we've always had the support of our board.

To do that even in the difficult years of Covid, we continue to invest.

For what we know is going to be a brighter future. So a lot happening on the service side.

And clearly.

As I look at this business is built on two pillars, great brands and great people.

You'll hear from from Ronnie can a moment around our people strategy.

We start every meeting at CCP.

Talking about people, whether its a board meeting whether it's our management meeting first item on the agenda is health and safety more recently wellbeing physical and mental.

Fundamentally we believe that if we continue to look after our people they will look after our business.

And we are providing them with a more digital workplace.

We've got a lot of first aiders around well being that we created over the pandemic now over 600 fully trained and equipped to help their colleagues. We've just completed our first global engagement score really happy with the results top quartile clearly lots of strengths and most important they still lots of areas that we want to work harder on.

We are getting more diverse we're not where we want to be.

But clearly we want to continue to make CCP reflect more of the markets that we operate within and that's our goal going forward.

And then finally on sustainability.

I would say C. C. P has been leading this journey, particularly across the bottlers, obviously being based in Europe . Originally we were probably at the forefront of some of the challenges that went global whether that was sugar whether it's plastic.

We've refreshed our ambition on the acquisition of API, we've taken our <unk> forward platform, which I think is best in class in terms of laying out in a very simple way, but in a very.

Bishop way, what we really want to do to make CCP certainly in the Coke system, most sustainable bottler, but also across our peer group to continue to have sustainability.

As a benefit that our customers can link into our employees feel proud about a number of different areas across renewable energy.

Our pet.

More RGB.

Clearly as you'll see later, we were the first bottler to put our current greenhouse emissions goals into our long term incentive plan, so lots happening on sustainability.

And before I hand over to Rodney I just wanted to close on the slide that you know I think underpins the way we look at our business. So clearly we're passionate about shareholder value creation.

But in order to drive that we're really passionate about customer value creation and if you go back to Europe pre merger, we were not seen as a as a leading category for value creation for our customers. The category was declining margins were under pressure.

We turned that around and clearly while we're growing we're very happy that our customers are growing slightly faster than <unk>.

<unk> their margins and making air categories, even more important to their journey and I think that's a nice combination because clearly the more relevant we are.

The more time, we get with them the most space we get in the store the more open they are to our ideas.

I won't say to more open they are to our pricing, but clearly, it's a better platform to lead that conversation and that.

On the back of us being the number one FMC G value creator in Europe .

And also in Australia, New Zealand.

So we go into those conversations from a position of joint value creation, and not not arrogance, but a recognition that we have been consistently delivering more value for our customers over a longer period of time.

That sets us up we believe for more growth in the near and midterm.

With that I'd like to hand over to <unk> who's going to touch on that second pillar perform a NOLA talks about the brands, which is a great people strategy. Thank you chronic.

Yeah.

Thank you very much Damien and good afternoon, everyone and <unk>, leading the people and culture function globally for CCT and I am more than 20 years in the company I've been really lucky leaving.

Fantastic experience in many different HR wounds locally globally.

As business partner generalist and supporting all functions of our business. So today I'm delighted to present you the people strategy and a key strategic initiative, we believe would make a difference for CCP in the future.

I'd like to come back to the early years of Tc.

It's been an amazing journey like Damien just explain and we truly believe what makes <unk>. So special it's our culture of the company and its people and as many people say internally, we joined fossil brand, but we stay for the people. So the culture of the company is really really.

Its trunk.

And we also believe that the leaders of the organization after one shaping the culture.

The one wholly modelings and ways of working and the other one.

To be best in honestly on gauge minutes. So is that how we supported them with what we call the accelerate program.

Our leaders went through his leadership program at the beginning of that of the amounts here in 'twenty.

16, and 17 and the good news is we refreshed that program and cascading down in API, two all and management position. So we are now with our company culture and ways of working to venues as a company that truly and bidding globally.

Second we define our people experience. It is how it is to work at CCT. That's what we called me at TCP. So it's really communicated to the entire work force.

Of course, we supported our people on Colgate is being too, yes, all that quite a challenge for our people, especially frontline people, 80% of our work force is hotline.

So we put in place a very strong supporter Susanne.

And we also are clearly set an objective for being an inclusive and diverse and Accretable organization. We believe that it's it's really making a difference and we want to reflect the communities in which we have behaved.

We set a strategy for high and we set some targets some action plans and we received recognition and awards for our diversity and the shape is.

And to attract people to attract talent, we believe being.

Ms Andrea amongst the best companies is absolutely critical and.

We are very proud because we got a lot of certification and recognition in all our markets, including in some markets, where we could see potentially cities, but it's more challenging but Indonesia. As an example, I've got a certification is based on player. So we are very pleased with that.

Now we are investing in the what we call the way we lead it's really how we invest in our capabilities and leadership capabilities commercial capabilities customer services capabilities and as well as in digitization, including in the area of people, where we provide.

To date and very innovative tools for people to access that people functions in any halo HR related topics.

So the way, we set and shapes the people strategy is Switzerland, other strategic workforce planning.

Basically it's really.

Now as to ask the right question for the future and to really profound and workforce of the future the capabilities of the future.

Making sure we have the right people and why silent.

Our most critical wounds and making sure the culture of the company is really embedded and lift in by all of our work force.

It's a global work force Damien mentioned that Okay, Hiseq globally 33 people and so it's a key responsibility to ensure the walk for states other than for the future and to ensure we scaled our skills and his skills. The work force to really stay and therefore for the future.

I'd like to call out three strategic priorities for us.

Mentioned, Nathan then mentioned it it's all about being even more inclusive we have very high ambition on being an inclusive and diverse and equitable organization and workplace.

So we set out for ourselves some targets challenging targets, where we really want to accelerate.

Gender is a critical at target.

We are targeting 45% of female in management position by 2030, we.

We also believe that we can continue to.

To feel to live to give an opportunity for people to feel safe to really leave with.

Some form of disability in AR at work, So we decided to set a target for disability her presentation.

10% of people.

By 2030.

And we are very conscious about our footprint and the impact we can make on communities. So we set.

Ambitious program on social mobility, and we support internally and externally and programs, helping people to get back to unemployment situation.

Second is building a culture of sustainability.

Really at the heart of everything we do so we embedded sustainability in all of our capabilities programs and in all of our training curriculum.

Second priority is.

We mentioned about that it's all about culture I turn it back leadership, it's all about having the right leaders and the right people and the right tools. So we decided to design a new competency framework leadership comprehensive framework to really give.

Our expectation for a leader to be successful at seafood.

So we are building all leadership program.

The basis of that time work, we are also investing in the entire.

Work force.

First at entry level.

We have a significant programs are in term sheet for a partnership for graduate program.

We also develop people at the middle management level, what we call the emerging leaders program to really prepare the future leader of the organization and for some of them to fast track <unk> and we are investing in senior leaders of the organization I'd like to call out what we call carrier.

It's a total innovative tool, it's what we call an internal talent marketplace.

Based on skills and not only on traditional jobs and based on.

Where people get off at some vacancies some training some connection with the leaders with the experience at the individual is trying to get or has an aspiration to grow into future.

And last we developed our own internal.

Explorer for any people related request, that's what we call journey and every employees, including frontline, including in factories Bluecoat us can access Janie and ask any question and can get seaport directly digitally first and then for from <unk>.

Oh, the expertise of specialist in HR when necessary.

Last is our progress and we leave in a in a constant volatile world. So it's very important to really embed changed management in everything we do and to equip our leaders leading change leading consolidation leading.

A scaling of that team and leading with care. So we embedded in a leadership program and management program change management approach. So that we and shall we have the entire work force on gauge and the standing on the change in changes of us as well.

A track record of driving efficiencies and we have clear communication with our union spots now.

We see as the future of CCT.

Last we have an ambition to be a high performing organization. So all he wants philosophy aligns with our business objectives. So we pay for performance and.

And we align all the incentives of our leaders globally short term incentives.

Including as.

The critical financial metrics of course, as well as some individual objective for the executive team on diversity. So everyone understand the rules that have to play to build more inclusive organization.

And on the long term Damian spoke about that we also included sustainability objective, making 15% off as a potential outcome of long term incentive.

So in summary, we want to be an even more inclusive organization, we continue to invest massively in capabilities, indeed, differentiating capabilities and commercial capabilities and Steven will speak about that.

A bit later and then how we manage change and making sure we sustain and maintain an engagement of the work force in a changed environment. We can be very pleased as the work force demonstrated to be extremely resilient, we maintained our engagement score in the hardest moment.

All that of the pandemic, we also surveyed people on well being and stress at work and we were pleased to see that we've been able to maintain that level of that although hesitance from our fast.

So we are very confident we have the right people, we have the right investment plan for them to fit that.

Company objectives for the future.

Thank you and now I hand over back to you Damian.

Yes.

Yes.

Yes.

Yes.

But you can't you can clap, which allowed us just slow prohibition.

Just to come back to something Rodney touched on for those of you who are with us in 2019.

Laid out a number of frontline digital capabilities.

The focus around revenue.

Hum.

And we quickly learned that if we didn't digitize inside the organization quicker our ability to digitize our revenue was just going to be slower.

So what we recognized is we were having conversation with our customers is that a more digital relationship more online if the people working in our organization, where 10 years behind you could never meet that commitment. So we have invested with Peter and the team and a lot of digital tools and hopefully some of you saw that today with the sales force what are really goes across supply chain or.

Back office are wonderful facility in Bulgaria.

Because we recognize if you want to be a digital butler on the outside you've got to be very digital on the inside so that journey continues but that's why I thought it was important to softer new we share a little bit of that if you work at CCP, how digital is enabling you to be more engaged.

More productive.

Before I hand over to <unk> I, just wanted to touch on one slide because I know some of you are really familiar with the Coca Cola system.

Our our corks, let's call it our unique structure.

For some of you may be quite new and I think quite often myself, a nick and saw one of the questions. We get is like so how does it work hurdles work how does it really work in Las Vegas on Heather's are really really work.

And clearly we've got some great foundational.

Platforms like our incidence model, which really drives the economic sharing principle very different to where we were on volume a number of years ago and clearly as we both engaged on a bigger footprint.

Being really aligned with the Coca Cola company is a fundamental belief.

The system has and that we in CCP hub and that allows US also to challenge.

Disagree.

On areas that were both passionate about and collectively.

As the bar.

For Us obviously is the Butler our primary goal is bottling the great brands of the Coca Cola company getting them to market selling distribution managing those customers big small online offline.

I'm being passionate about the consumer's interaction with our products so whether that's in the cooler on the shelf.

Or on a webpage.

The Coke company clearly there the custodians of the world's best brands, you'll see a lot of them later.

The supplies for the concentrate.

At a very reasonable price Madonna I'll have to say.

They work with us on Brown <unk> portfolio development.

And clearly on what Youre going to hear from Lenovo is they really drive that consumer brand love.

So great consumer marketing that is the engine of our customer relationship of our revenue growth.

It's built on some good processes a lot of transparency.

A lot of good decision making platforms.

A lot of dialogue.

That dialogue can be very consensual or it can be quite disagreement on certain topics.

That's really one of the beauties of the Coke system is that you can challenge and collectively end up with a better solution. So I'd now like to hand over to <unk> who's going to share a little bit more particularly around our consumer marketing platform. Thanks vanilla.

Yes.

Hello.

Good afternoon, everyone.

Pleasure to be here for those of you up.

Other pertinent to meet before.

I've been in the system for 27 years John .

John very early at the age of three.

Yes.

Spain first.

U S.

Back to Iberia for 40 years, another eight years in Asia Pacific.

Leading a lot of the Walgreens refranchising.

<unk> left the company went to two other industries back to Coke, Mexico, a couple of years.

Asia Pacific again, basically embraced in Singapore.

Managing Asia Pacific Bottling investment group.

2020 <unk>.

The CMO of the company, it's a pleasure to be here. Thank you.

Yes.

So the category visions category vision.

For Us this story.

Of transformation.

And as a story.

Of growth.

And that transformation.

Was required.

After the realization.

That.

A lot of our investments.

We're not really as effective and as sufficient as we would want it to be.

The digital disruption or change dramatically.

Move and shift to power.

From the brand owners to.

To the consumer.

To each and every one of you that decided one day. Thanks to these smartphones that you can.

Washington C or not.

And the consumption of media.

And we were just not ready for that.

After decades of moving from a software company into a total beverage company wherein the bolstering of plays where we had a lot of our components.

Components in our portfolio and we're very fragmented. There is an example of that six we were managing six to 7000 agencies around the world.

We are managing more than three to 4000 innovations per year.

And while the performance was was okay. It was not that good the good news is that.

We are in a really exciting.

Industry arguably.

If not the most one of the top two today in terms of growth there is a lot of growth.

Very interesting margins in beverages.

He is a vibrant and competitive industry.

Jamie mentioned.

You can see on the on the top left chart.

The growth is somewhere between four projected to be in the next two three years between 4% to 5%.

Different by the different beverage types soft drinks. So that's callers on our sparkling flavors around that 4% to 5% same thing for hydration coffee and tea nutrition is a little bit lower than that 3% to 4% energy, 6% to 7% and then emerging that for US is at this point of time.

I'll call ready to drink so below 10% alcohol content is somewhere between 9% to 10% projected over the next three years.

We are guided by our purpose and.

We have a very clear strategy that as you probably have seen last week in our.

Third quarter results. It is working and is delivering results for us.

We feel very very confident where we are at this point as a company.

We understand the environment is uncertain, but.

But we're probably entering.

Hey, Chad.

Challenging and complex time other best time from a capability building as Tom pointed our whole history and that spans across the whole business.

So the transformation.

So embark a bit more than two years in marketing.

That's really on the consumer.

Really understanding what they want really truly and deeply and delivering to them.

Superior tasting.

<unk>.

Pay superiority is core it's the first pillar.

In our marketing.

When we do then is to meet the consumer where.

They are in the specific consumption of patients.

That happened in certain channels, and that's where we collaborate and create co create those plans with our bottling partners like CCP.

And then we have a little bit of magic and magic is trying to engage with the consumer with what they love them. They love the most which typically are passion points, whether sports music and game in ESG for many.

And that's how we breach the importance of driving conversion.

Of non consumers into consumption in a specific location.

But bringing the magic of the value perception.

Through engaging.

Leveraging multiple passion points.

And all of that happens.

Through marketing platforms, Brian platforms innovation platforms.

And importantly execution of the point of sale.

Half of our marketing I always say to my IR team half of our marketing.

It doesn't happen in Nevada.

It happens in the stores.

It happens in every one of the 26 million outlets, where we serve our products.

Everyday.

So.

The transformation really when about tackling three areas that we needed to address.

Portfolio.

Innovation.

In effectiveness and efficiency of every single dollar that we invest in.

In marketing.

Starting on portfolio as many of you may have seen we went through a very significant exercise or what we call internally pruning.

We started off from a more than 400 brands around the world that span across all the different categories beverage categories.

And those 400 brands were brought down to around today.

Around 200.

And that is a absolutely formidable portfolio of brands today.

That.

There's no doubt that you name it anything that you want in beverages, we have it available.

For any kind of age.

Any kind of category.

In any part of the world.

This far more than what we could execute in any given country.

To choose from.

And the way we went about it is a combination of organically created brands.

16 of 17 of them actually now our billion dollar brands and not only in sparkling soft drinks, we have a lot of billion dollar brands in stills today, 60% of them actually.

And we also expanded the portfolio through bolt on acquisitions.

Probably have seen recently.

<unk>, which is a phenomenal brand with a bearing.

Very impressive track record in the U S, which is redefining how consumers in that market are.

Enjoying.

Hydration and the sports location or fair life, where we're seeing exactly the same.

Phenomenal success of the U S being replicated in Canada as we speak.

We also expanded our way of thinking we were very conservative in the past we were.

We're very.

Wouldn't read there.

Two mix.

The mother.

In something that is mixing and blending with with alcohol.

Experiment in the very being much more bolder around how we tackle on how we enter surgically those segments.

That portfolio specifically for.

CCP it looks like this.

On the left.

Half.

The brands that are on the top top left.

Globally present part of our core portfolio on the bottom.

Complemented with very significant and sizeable with a lot of scale.

Our local brands.

That are present in the different territories of CCP. So ultimately we got to a point, where you really balancing.

The power of global.

Brian under scale.

With a local touch and intimacy that you need to address very sizable profitable opportunities through a local brand in different segments.

Moving to innovation.

As I mentioned.

I mentioned, we started off from three to 4000 innovations per year.

The success ratio was excellent.

It was three times the rest of the industry.

The problem is the success rate of the industry was 1%.

So it really cold.

For auction to really reassess upside down our innovation process it would take us.

18 minimum in 18 to 24 months on the <unk>.

Some of those not so easy conversations with people like Damien would be around that because we were very very slow. It was just not acceptable we were way behind the speed of the market.

So after reviewing all of that process.

We ended up in a place where we clearly assess any new idea.

Against three criteria.

Consumer desirability.

Financial.

Attractiveness.

And supply chain manufacturing feasibility.

And in the past any senior leader of the system, we have an idea we would R&D.

By the time, we realize ideas not good a year later.

Spent around $300000 in every idea.

<unk> 1000 ideas.

Today, we have an app.

With the history over the last 20 years over the whole food and beverage industry.

For $70.

$70 seven zero in minutes.

I understand where it falls into the consumer desirability level today.

All our innovation pipeline for next year is in the top quartile.

Of that database.

And we're raising the bar in 'twenty three the top 10% our pipeline for next year.

Is 60% stronger or more robust than what it was a year ago.

In the third quarter results.

You saw it last week.

One third of our revenue comes from innovation.

One quarter, 25% of our gross profit.

Came from innovation and we're seeing innovation become.

Two times more effective that the rest of the beverage industry.

More than 40%.

Dividends that our main competitor today.

Still a lot of work to do but the 18 to 24 months is now gravitating between three to.

Nine months, depending on the nature of the project and these are the critical capability, particularly as we face challenging times over the next months and years.

Moving into marketing effectiveness and efficiency I'm not going to bore you with the chart on the left.

We believe that there is.

A good degree of process, there, but in essence, where.

Where we are right now and Coca Cola.

It's in a migration.

A traditional television model.

So what that means is in 2019, 71% of our media investment globally was on television.

29% in digital.

This year, we're getting very very close to the 50 50.

Next year, we will.

Will surpass the 55% on a global scale with.

With places like China, 80% digital the U S, 65%, Europe , and Latam close to 60% as well and as you can imagine the marketing factory that you need for that transition is radically different in the past, we would do three or four big TV ads per quarter.

And we will put bells and whistles around well give it to a media agency.

And in one week you reach.

80% to 90% of the population.

But today, particularly for those of you.

They have teams at home.

Watching a single television at no one is watching anymore.

Really that's a fact.

So you need to move the marketing factory to factory that creates content.

On a real time basis.

And you actually need to allow consumers that engage with you to co create some of that content and put some of the voice their own boys in an authentic and real.

Reis two brands like Coca Cola is very very different way of doing marketing is starting to yield results on the right side of the chart you see some of the numbers is specifically for CCP.

It's fantastic to see the progress of our.

Of our partner in Europe , it's really leading the way in many very important marketing programs not only for Europe , but from Europe for the rest of the world.

Thanks to the talent in this part of the World and clearly driving much more gross profit for every dollar that we invest in marketing.

And the early signs that marketing is also working start on the modest shift on the on the big run on Coca Cola.

We have seen in the last quarter. For example, 37 of the 40 top markets over the company growing in double digits Coca Cola zero.

He is a clear winner.

There's a very specific IP going on around pay superiority that explains why we're getting closer and closer and closer and every iteration.

Two Coca Cola original taste.

For the first time ever we launched for example, the new campaign, the new platform for the brand real magic in the U S. Not in TV, we didn't use TV at all.

We put all the investment in just one single digital platform <unk>.

Okay.

Which happens to be Chinese by the way.

Interestingly.

And the results are there.

12 billion views in just two months.

That was four times the best in class for example in the history of Destock in the U S, which was 3 billion views.

So it seems that digital is the place to be and to work, we're seeing improvement of almost 50% in brand perception. As a result of that campaign a lot of work in digitizing, our marketing programs, including food delivery, particularly during the pandemic.

The work on Coca Cola creations, while I can confirm now internally it was a bit controversial initially.

Is really really driving more than 50% of all the search that is going on on the trademark in across the world.

And a lot of stuff is coming for next year also in that direction.

And.

The reality is that when you see that this is happening.

It's happening not only in Coca Cola, It's also happening in the rest of the portfolio. So.

So for example in our sparkling flavors funds and sprite are almost doubling the growth.

Versus the prior year and some of the key markets. Thanks to the new platforms. So I'm not going to elaborate through all the different platforms and the portfolio rather I'll share with you just a quick video, which you'll be able to see some of those platforms that have already been rollout in some of the markets in some others.

It will be completely new for you, but I hope you enjoyed it thank you.

The increase is a new way of marketing that is brain.

We're experiencing a new way of marketing.

And iconic.

Gotcha.

It's the real magic of a single global platform.

Yeah.

Ah.

Place where experiences overtime.

That's where you'll find Coca Cola creation, merging D&B and unique collaborations.

The actions with the brightest star.

And found ways to surprise and delight.

It's consistent.

A reason to celebrate sprite beyond the summer.

Yes.

It's a new way that changes definition.

And age demographics showering consumers with new game.

Isn't that food powdered wellness reinvigorate.

<unk> group and inspires us all to move food enriched.

Yeah.

Yes.

Here, what you need is leveraged with new moment to market to capture.

Opening the way for those seeking to discover fresh.

French market.

<unk> new passion.

We have amazing things are created and cultural lifestyle icon.

Good.

Okay.

Yes.

Sure.

Sure.

Lets you establish a self care ally for all innovations that are free.

And new experiences.

The speed.

Yes.

It's also a breathtaking fusion of teeth.

Yeah.

Fueled by different point of view.

This new way of marketing isn't afraid to make waves.

Turning to category.

With a better way to enjoy what's truly worthwhile.

The breakeven boundless knows that the pause is power challenging sports category.

Capitalizing the sign of the times.

Barring I tried to always come back strong.

Variances mid scale amazing habit I'll work becomes breakeven.

Taking the MRSA.

Having weekly plus to new Heights, fueling consumer engagement, capturing first party data and building sustainable long lasting relationships. It's why we believe that together anything is possible.

Thank you.

Steve.

Yes.

Good afternoon.

Turning to everybody.

My name is Stephen lost for those of you that we met the velocity couple of artist is good to see you again.

I joined <unk> in 2017, and I've been with the system.

Nearly over 30 years, so as young as menudo.

It is a different rules.

General management supply chain and commercial through my career, both in Asia, southeast and Western and Eastern Europe . So it's great to be here.

Want to talk to you about an even brighter future and on how we see the next number of years as we've been building the strategy and as we see the momentum that we have in the system.

So starting as ever.

Important that we look outside and then make sure that we're taking into consideration what's happening in the world around us and post COVID-19, let's even more critical as we look to our strategy and make sure that we look at it through the lens of the macro and what's happening around us through the trends that we see on the winning formulas that others are made.

And Cpg's and how we can adapt to that and then obviously the channel trends and what that means for us in and around where we should play and how we should win and then obviously lastly, with our brand partners with the company on Monster, what the consumer trends are going to be and how do we need to access those.

So as Damian said earlier, we're in a great category. It's big It was 130 billion, that's what it'll be around but this year across our markets it's growing.

3% and we see it for the next number of years continue to grow it's sizable and that an API will continue to see faster growth driven of course by Indonesia, but theres also the point that in Europe , but we'll continue to see growth and we expect as we've shared in our midterm earnings that we will be wanting to grow ahead of that and take share on around that we.

See in the midterm then the capability to build our coffee.

Innovation to go with the alcohol ready to drink as we'll be entering and we'll talk about that a little bit later, and then obviously through package listen the sustainability aspects working with our customers to look in the longer term.

So on to talk about the category and this is something we reviewed back in 19 of our previous capital markets and again, giving an update the next number of years, we're going to see growth driven by carbonates.

A great category, where we have great opportunity in leadership and challenging.

Under our coolers and flavors secondly, obviously through energy, which we believe we're well positioned to continue to grow and then obviously T on ready to drink coffee. Another area. So a continued growth of an additional 30 billion over the next number of years, which continues to give us great enthusiasm for taking this.

Sure.

We expect with our customers.

And as linoleum talked about we have continued through the occasions work that we've done with the company and monster to look at the best brands with the different categories around our vision.

That category enables us to have diversification of our portfolio with all of our customers and we're really well set up and there'll be few brands as you see like Coke that play in so many different occasions, but ultimately taking that and you would've seen today in the market visit whether that's in home with food or out of home that we're well set with our poor.

Folio to win in the future.

And as we've talked about the categories and we talk about those that are going to win and starting with our cooler category and cooler light is a big opportunity for us and Thats going to continue to be led by the acceleration on zero sugar, where we're going to continue with the company to look at recruiting consumers.

Into the no sugar.

Continuation.

Then obviously secondly, youll see just now as we see zero zero going into a new occasion, the late evening when zero caffeine with zero sugar.

<unk> success from Spain that we're exporting across all of our markets.

So big opportunity in Cola lights, and in cooler still to drive continued margin growth.

And then in energy, you'll see as we've just announced in our Q3 call.

<unk> growth up 60% versus 19, the energy category really is on fire and three innovation on what you would've seen today in the market through great execution through our retail and on the go.

The ability to provide also no sugar, we continue to have a great opportunity to grow and win in energy.

Sure.

As we look at the other parts of our business of Menudo talked about flavors. We have continued to work with the company on having a great sugar and zero calorie portfolio and that's really how we're going to see continued re formulation and ways in which we can win as.

As we go forward and being even more relevant to teams.

And you'll see from Peter a little bit later some of the innovation that's coming through in Australia, and we will continue next year to look at that innovation and then in the ready to drink tea and coffee area fuze tea in Europe as we looked upon by the company as one of the best re launches from nasty in the fuze tea, we continue to go from strength to strength.

Obviously, our decisions to refine their innovation and choose where we go with Costa.

And for those of you that will be around later Tonight with Nick and saw the late night bar will be also wanting to show you how do we take costa coffee into a different way in which we are we couldnt believe it constricts the credentials of our brands at a late night offering.

Back to what <unk> said.

In a category that you know.

Continues to have great opportunities with our consumers on the priorities, we set with the company and working with the company to prioritize a news areas continues.

<unk> continues to bring focus and continued investment of the company.

And then the choices that we're making so as you see we'll be looking and we're very excited to look at sports sports being another category learning from Australia, but also with body armor Powerade and Aquarius, we'll continue to look at about functional and that consumer trend to health as a big opportunity and then lastly of course, we cannot talk about.

The hall on the impending launch that we will have and Youll hear more from US later Tonight, you'll be able to try that when we go into Jack Daniels and Coke early part of next year in Q1 and Q2, when we move with Brown Forman. So we're excited about those innovations.

The choices and priorities.

Going to take.

Sure.

What's great about the resilience of the category is also the diversity and Damian talked about it we want to grow and we are in a growing and diverse and resilient category both in store and online.

And one of the things we've seen on the diversity of our channels is that many of the App home propose.

Covid trends have stock. So you will have seen today when you're right in the market. Many of the at home locations that we are tapping into that is enabling us to drive growth, whether that's with food or eating in or socializing with France.

And then what clearly we see in the next number of years and away from home, but many of our away from home socializing will be driven by <unk> foods.

Food will be trading in the GSR, where people are looking for value and then obviously, we will see continued growth in Asia through mom and pop stores and Youll hear Peter talk about general trade in that opportunity list continues for us to see the ability to grow and win with our customers.

And that means in reality and home as we've set that we're not agnostic the growth we want to grow wherever we can and.

And three our home market as Damian said, when we created CCP, we had two objectives, one gets sparkling Bakken groups.

And to create and bring margin growth through our customers and retail and that's something that we've done successfully and continue to invest upon and that's something that you'll hear Peter talk about how do we want to bring that to API.

And then obviously, we've invested in digital and that's enabled us with data and analytics to be able to create ways in which we see growth coming.

And then as Damian said, we continue to be the biggest value creator for our customers across those markets in FMC G as well as any RTD driving growth and margin that makes it also a great story for our customers.

But that doesn't mean that we're happy with where we are and as we look forward to the next five years, we see significant opportunities for us to grow.

And some opportunities that we talk about is where we're reviewing again as we look to the challenging times ahead in our market, what we call segmented affordability and.

And Youll hear young team talk later about our R&M G M capability and high we're looking at how do we segment our different types of shoppers to enable them to drive affordability and then doubling down as we say in home on a revenue and growth management, Peter will again talk about a little bit of that and what we're doing in API, but we believe that is.

Another capability that will enable us to win in the future.

Obviously in away from home, we continue to see accelerated growth as Damian said coming out of Covid.

And we knew that we can improve with our execution our capability and all of that enabled digitally and you'll actually hear a little bit later from one of the team David talking about how you were doing that with our customers.

So.

Sorry, So finally talking about online and winning both as Damian said in store and online.

And we continue to have higher share with our customers online than offline, if you taken Australia, or Spain, or any RTD share is 10 to 15 points higher at nearly 40 online that it is offline.

And at the same time, we continue to work very closely with those online food services to drive incidents, which is critical for that ticket with our delivery partners or fast food and international GSR customers.

And the reality is we continue to invest as a business and much of that or a significant amount of our future looking investment again from our capital goes against digitizing and enabling our revenue growth.

So finally, we're in a great category.

It's growing it's dynamic.

And supported by Great people and Great partners.

We're going to continue to have a brighter future.

So with that I'll hand back to Damian Damian back to you.

Yeah.

So I was just noting that <unk> got the.

Loudest applause I think that's a function of so many bottlers being in a room and trying to keep the Coke company happy.

But.

Yeah.

So I'm expecting a lot more from you they care a lot more as usual.

So were just close to a breakthrough I think we're good in time I just wanted to.

Just close off with a map on it kind of goes back to something we talked about at our board.

And we're going to hear from Peter next around the API acquisition was that we set an objective one obviously was to make the acquisition accretive.

And great for our shareholders, you'll hear we're doing that and secondly was to make Europe , even stronger and particularly when I talked to a lot of our large shareholders.

Felt that was really undervalued in terms of the potential that we could take from particularly the Australia, New Zealand businesses back into Europe , and I think when you when you hear Peter you, you'll get a flavor for what we've been doing.

You've heard from Stephen and Lenovo quite a global and kind of Pan country perspective.

I just don't want to lose what's great about our business as well, which is the bottling business is still quite a local business.

And if you take our markets from Iceland, where we're the second biggest player in beer go to Norway, where we have a fantastic coffee business over many many years.

The Sweden, where we probably have one of the most diverse and sustainable Workforces in Europe .

Here in GB hopefully you got a flavor today wonderful key account management skills Big ambition, great supply chain management go to France, where we have just relaunched our whole RGB portfolio in away from home, we've got the Olympics coming <unk>.

Germany, you'll hear a little bit later from Jose Antonio Nick Great capabilities around discounters, who are the winners in retail we know that but also significant restructuring or reorganization over a number of years to unlock value.

You've gotta go to Belgium, probably one of the best away from home markets globally for the system. The Netherlands, just one of the Candler Cup built on numerous years of success, you've Gotta go to Spain traditionally one of the best Coke markets in the world.

Again, a great hurricane business, Great brand love.

Supply chain, Portugal, with really and the team turning around a business that has struggled for a number of years.

And then finally I want to talk about Bulgaria.

Thankfully as Atlantic No, we don't sell there.

We'd like to but we don't feel there.

But we've got a fantastic shared services capability in Bulgaria that re.

He is helping us transform CCP.

Not just in the areas of process efficiency and cost, but in the areas of data analytics robotics.

Fantastic group of people led by Thomson.

Highly energetic young talented and Thats also allowing us to unlock a lot of value beyond the top line right down through the P&L.

After the break you'll hear a lot more on the other side of the map from Peter around that where we're seeing API. So I think we're good for a 20 minute break Sara.

Stay in the room, where you can go to the bathroom, obviously will stay in the room.

And we'll be back in 'twenty.

20 minutes. Thank you.

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So good morning <unk>.

Good morning, because it's 115 I am for me.

So right on Peter West on the General manager for Ipi and just as a brief introduction on my background I started my career at Mazda on the Pet care business, then moved to confectionery 11, and a half years.

Six years at a biscuit company called on US, which is quite an iconic business.

In Australia, our then return demands for another five years and the last euro headwinds.

Running the chocolate business in Continental Europe based out of Brussels.

I, then went back to Australia or in our dairy business for four years, and then I joined <unk> 2019.

So it was a very different experience from three years of being at AMETEK to then go through the acquisition I've been involved in acquisitions before but not to pay on the receiving end.

So very different experiences your wife Goodbye to your peers.

Boston everything else as you as you go into a new world.

18 months from the completion.

And as far as my message to you is just how brilliantly.

Integration has gone.

And my sort of reflection, having work for large multinationals is I think there is a continuum that exists between local market accountability.

And then how do you leverage scale and capability and I think all large companies struggle with that to get the balance right.

And I believe that CCP and I say this very sincerely threads, the needle of getting that combination between local market accountability and scale perfectly right.

Okay.

[laughter] just don't forget me then at that time.

So I think that's actually made the integration extremely successful.

But it has certainly from an MSL perspective, a difference to the way we operate and I would say we had a very strong local accountability.

But we weren't working in our interdependent way and we weren't leveraging scale and capability in the same way.

So that really does in my mind step change, there's always sort of reflecting in coming here is that I can say if you fast forward from eisai in months Eisai sincerely, we are much better business than what we were at before and.

And we do get to leverage expertise and the expertise because of the breadth of the markets that are involved in CCP. So when were putting a new can line into more urban and we're going through the specification and we're dealing with the experts that ship within engineering and capital we make a whole series of modifications to that planned investment that ultimately sides millions of dollars in.

Generates the efficiency and that type of expert expertise function by function is something that we really tap into to take us to the next level.

Under the new ownership there is an opportunity to become more focused and where we were where we were.

And you start to address is there a size of prize for things that we've been in the past and you addressed some of those issues.

And one of my themes for July is that we operate in a super impulse category, it's incredibly responsive to display an activation site portfolio and portfolio prioritization is actually the U K to drive the sort of offtake.

The category.

The two things that were different to what I expected.

I think the first was its a learning organization.

And when you are part of large multinationals are often there's a why it's done and then not that receptive to learning something different and so I was sort of surprised by a very successful organization that has done incredibly well like for a period of time to banks are open to new ideas and if we presented stuff that was good. Thanks, I had thats better than we do it and we'd be like Oh Wow that was.

Great feedback wasn't it so to get that reinforcement of names to say it is being shipped.

Europe is given the attainment of lot of satisfaction about the openness of the culture.

And then it comes and ambition and our ambition to take out performance to a high level. So if you set an ambition to be the number one value creator for your customer it starts to put what.

What is possible and then you start to take those learnings.

So it has made a difference to the acquisition and I do think you'll see that in our performance.

Right.

And doing the integration as you can imagine doing it mainly via video conference.

What we did is we're very clear on the cultural elements that we thought would make a difference so we aligned.

Al reward system, we've aligned our writing system.

The artifacts of the organization.

Incredibly important and then we tried to drive the functional alignment that would really make a difference.

And then what we had was a value realization community and this was really the business case.

Making the acquisition work and.

And there was a frequency that existed in the value realization on these themes, which is how do we leverage the expertise that sits in Europe to make Australia, and New Zealand business now, especially when you look at the similar.

Opportunities and issues.

And then what would really make a difference to the long term is a real reset of Indonesia, and having Indonesia that is therefore, a bigger business.

And we will be therefore accretive to the performance of our organization for the long term and so that's been the theme of the value realization community either video.

For a long period of time.

So what I'm going to do today is try and bring to life the strike.

<unk> turnaround story and waiver out on that.

I'll share it really about our Indonesian plans and our expansion.

So if you go to talk about Australia, and New Zealand you always got to start New Zealand.

And when I had the pleasure of hosting Samhain Diamond.

Diamond sent me an email afterwards to site, which perhaps is best market visiting 25 years.

Because of how great the market looks as a great role model for our organization.

And where we were at outside in the past when I joined in 2019 is that we werent, taking the learnings from New Zealand and transferring that App.

And if you go to the Magic of New Zealand they'd actually stops with the growth mindset of the organization.

And people have an expectation that they will beat the market.

And that's the way they design it.

I would say is elegant because they're very clear on the role between large stores in big stores. They understand the cost unbelievably therefore of how they design their pack and price.

And then I understand the profit to serve not the cost to serve in how they operate.

So they are the best in the standards are driving the picture of success and the right execution daily of what Youre seeing in stores. So what I presented to you on a on a Powerpoint is what you see in the store.

And I have a view in packaged goods that you should be able to sustain in a store and look at a fresh look at our fixed you look at the display and you can actually tell the strategy of the company being executed and Thats, what you say beautifully in New Zealand.

The good thing is that we've taken a lot of those learnings from New Zealand in recent times to Australia and.

And the Great thing now is the teams.

Countries that we're in locked emphasize long walk me where.

But as the time from New Zealand now come to Australia, I would say, a very different business pretty locked down and.

And the learnings that are taken there.

What we also sees the opportunity for New Zealand.

Tapping into.

The broader learnings in Europe .

The performance and the track record of success over many years has been significant.

And the value of shares that we hold within the market is incredibly high.

So the New Zealand business does it as a very good proof point for us.

What's possible and the learnings that we also apply from New Zealand to the rest of the world.

So moving from New Zealand to talk to talking about Australia.

We are very optimistic on the fundamentals of Australia, we do have good population growth.

I'm personally a big believer in the Big Australia, it's too big a landmass with such a few people.

And immigration is fantastic and historically before Lockdowns, we were growing at a net level of about 200000 from immigration and it really powers the economy.

And the strength of our country.

And then we have.

Buoyant NII to the category.

And I think the behavior of the categories operating differently.

Post Covid I think that there are more occasions that do exist in this sort of balanced between Harman and flexibility of work I think it's an incredibly buoyant category.

As a result, and we're incredibly well positioned against that with their market share and we're even stronger in the away from home sector and when you add that from an NII today would be over 40% of the market.

We've got a very nice spirits, and assay business, which I will talk to them and the market share on coffee is specifically to do with the change in grocery so im not <unk>.

<unk> wave and iron share of the market, it's billions within grocery and what we do is we then leverage the cost structure of our supply chain through the efficiency of that toy away from home business is a really effective base production.

Our competitive advantages, we have a direct store delivery business, we delivered to 94% of postcards, Fortunately or less we're second to Australia post and therefore that reach that we provide by postcode. We have a strong equipment business in the market that is a real competitive advantage.

And therefore, it's about how do we leverage this capability to take us to a higher order.

The challenge for us.

Well, let's say from two.

2012 to 2019, we declined as a business.

If you go to the sort of the background and the history to that the number one issue that we had is that we put an over emphasis on emerging categories and innovation and the Macedon work for you because of the dynamics and importance of just core sparkling and we just had to get back into growth, especially on brand Coke.

The secondary is with Underinvested in small stores and the flip of that was.

Overly reliant on price promotions and grocery.

And then because we had a decline we just like to get a a growth mindset and we didn't have benchmarking and also to have.

You have good benchmarking.

It gives you a belief as to what's possible and actually sits in agenda to take you to a higher order.

So we have been improving but on each of these areas through the acquisition, we really take capability and performance to the next level.

Becoming even clearer on our portfolio prioritization that tells us that provides simplification for our supply chain.

<unk> knowledge and revenue management and sometimes the courage in revenue management, when you're taking the move annual two thirds the profitability of the company. It's just much hotter as a risk profile versus when you were a smaller part.

I think the real thing that we would bring.

As a present to the CCP ownership as precision execution.

And then we get to really leverage bank part of the global system for best in class when it comes to supply chain sustainability and talent, so I'll try and bring to life.

The first three.

The most important part of our business is brand Coke.

The NII to the business.

Half of our sales getting it back into strong growth is the most important and growing share.

The explosive part of the market has been Coca Cola no sugar. So we're seeing low single digit growth on classic that we're seeing explosive growth when it comes to Nash yoga side, a formulation change that <unk> spoke to has been critical because the tightest. So exceptional the packaging changes really worked and I think the most important thing in the packaging changes.

Actually pop classic first and really nice classic recruit inside the logos size and the shop ability.

And then the colors that apply that in no sugar.

Marketing that supported no sugar.

And then I would say precision execution, which I'll talk to so we've consistently won market share over the last two years off the back of this and it is the most important battle for us moving forward.

What you see on this page is when you look at the market growth the market growth is really being driven by the categories that are core to us.

Where we have a good share position and we also have good capability.

We took a view on water that overtime that Stillwater will be a smaller part of the market, we really had to reorientate Mount Franklin sparkling water and we've done a really good job of driving.

Range into sparkling water and driving share of sparkling water, which we see as the sort of driver of that water category into the future.

So from an NII today, we think we're well positioned.

Area of weakness for us had been flavors and we'd lost share over a number of years and we'd had too much.

Packs in the market.

Jeep location and we'd had a lot of deletions in.

And that was a key area for us to address an acquisition and I'll talk to that.

And we also have a very successful alcohol ready to drink business and I thought I just bring that to life. So it represents.

RTI days represent 18% of the alcohol category.

If you look at a lot of markets across Europe , you're probably talking 1%.

When you then look at the growth profile of the market. What we're saying is a decline in beer declining sada, one relatively flat single digit growth on spirits double digit growth on ready to drink.

And so if you're a retailer and you want to be growing and you wanted to be part of the future RTD is what you have to back because it transforms the age profile of your shoppers.

So be shop was probably look a bit like me.

People under certain age.

Buying it and then moving to this category as a replacement.

For our rugby league farnell.

In Sydney, where we had parramatta versus pen with the number one selling alcohol product, that's where the borrowers are today.

So it just goes to show how mainstream it's become now we'd really love it because we get to make it on a cane lines. So we've got investment in alcohol tank farms, we bought off the same suppliers in terms of the packaging. We then utilize it in the same warehouse, albeit that they bonded and.

And we get to leverage all the efficiency of our supply chain and then lots of the knowledge that we have an execution play out to this category.

Especially at our segmentation and our precision and we've had a really good track record of lending innovation in the market. So it's a really nice piece of business that we've been selling it for a long time and therefore, the knowledge that we've built and as you into alcohol you learn about the legal obligations that are required you learn about excise tax we paid over $700 million a year in <unk>.

<unk> it.

It's bound to a CPI increases you learned lots of things is a capability that are built over time.

In any integration.

What we did in the first six weeks is that we did a program a sprint program is how do we turn around flavors portfolio.

And we aligned with the Coke company on this program, we tried to incorporate a lot of the learnings out of Europe , and we've had a really explosive performance off the back of that this year.

And it's really pleasing to see the share turnaround that we've had and if you look at it is driven by small packs and it's driven by no sugar in particular.

And we're starting to see is it baas reopen.

The partnering business also rebound from a channel perspective, so it's been incredibly strong.

The most important thing for us to deliver a sort of medium term plan is the performance of flavors. So just getting traction there is very important and we were weak on lemon and we've launched a sprite lemon plus within to the marketplace. So early days of wouldn't declare victory, but we're certainly pleased with the progress we've experienced here.

From a prioritization, it's also been clear on what not to do.

The starting point for us that I'm really pleased with was that we had brains that we owned and that brought us into into conflict with the Coke company from a rosol. So we've we've done that transaction of selling those brands to the Coke company and what our likely as there's a perfect role sort of how we move forward.

What it means for our customers is that we actually go forward in a coherent way of presenting the category and presenting a renovation costs.

Strangely enough when your competitors you can't share your plans between each other in a coordinated fashion.

So this has been great to make the rosewood.

We also took the opportunity to look at the categories and decide do we actually have a right to win from our share. So for example in <unk>, we had one and a half share. If you did really well we might get two or three share.

It's not going to move the needle in terms of the economics and it's a distraction you can't leverage it through your supply chain and it requires its own brewery.

And we.

We can turn around our core business within a few weeks to pay for what we'd be making in this area.

And then we took the opportunity to sort of simplify our portfolio and when we looked at Europe , We would say Gee, we do have a lot more skus and we took about 25% of our portfolio when I joined between sort of 19% to 20, and we thought we'd move the needle but.

Then when we recognize what was going to happen in our supply chain and so we felt COVID-19 was going to be nothing more than a dress rehearsal for the turbulence of the supply chain.

If you look at if you're going to be having issues in your supply chain what decisions do you want to make that frees up capacity.

We looked at what played out with Europe and so this year. We produced from this time last year, we got 37% less skus in NII to the portfolio.

When you look at the loss of sales that we've had it's pretty much gone to other parts of our portfolio and then it's freed up an enormous amount of capacity for us that we can then sell at a higher margin so for us and we've done that with simplification two points here are the time it presented to me last week 3.0, and four point theory.

So we know that we've got a lot to drive here and therefore, we're seeing some record performances in our supply chain off the back of it.

When you sort of go back in the in the history of the business.

And Youre declining it does mean that there were a few of them may turned up there was a few different mds in that time.

That sort of front of the organization.

The leadership of the business actually becomes like really under pressure. So we had some good people, but it was incredibly tough time.

So as you sort of bounce out of that the confidence that comes in what's possible. So it feels more like when I'm in a meeting now it feels more like I mean, the New Zealand mentality.

Then what it was when I joined.

And especially on brand Coke and getting that back to really strong growth because that's what gives us the credibility with our customers is what generates the growth.

And it allows us to bring our total portfolio along on the journey.

So the share improvements that we're seeing across the this year have been been very positive.

But I just wanted to call that.

The advantage survey. So we were in the top quartile of our peer set we were sort of sitting at number five and in the light of survey, which was just adding October we finished at number one.

And we finished number one also on on supply China. When you look at each of the measures. We will number one on ESG of the moves that we've had.

The 20 yard I think it was 28 different measures. We are number one on about 15, so that was a particularly pleasing and reinforcement of our game. If we benchmark ourselves to JV, we would be saying, there's a raft of things within <unk> that are much better than what we're doing so we think we can continue to really step that up.

It is an important one to get to number one when you get to the discussion on pricing.

As one of the areas that we really try to.

Focus this year on was the price realization.

Which was within our customers.

Calendar financial calendar last year, we took to process. It took one in July which began in February .

We also made changes to the promotional depth and it was a category where it was incredibly responsive on large cans.

And so that 40% is actually become the maximum of large cancer, if youre in Australia.

Last week of September to October the maximum you would've seen is 20%.

Now you're trying to manage your market share at the same time within that within that mix because of the discounting they are competitive, but really made significant inroads and I think the key benefit that we've learned.

Ben how it's unlocked as smaller pack sauces bought by providing the oxygen and its exactly what happened in Europe by doing it provided the auction oxygen are fastest growing as the 10 pack six pack mini cans and the 12 pack.

300 parity and we launched the <unk> because of the price of cadence and we wanted to put it another offering into the market and that's had explosive growth for us.

So I know, there's often sort of.

Questions about the Australia retail scene.

I would say it's from a from a collaboration.

Having had 20 years of managing businesses in Australia, it's the highest level of collaboration that I've experienced in my time.

And I do think the establishment of the grocery code of conduct and the requirements that we can that has been an enormous enabler.

How we operate.

What we also.

Put forward on on our journey on revenue and margin growth management is there's more to be done. So the tools that exist within in Europe is certainly better than what we would have tried promotional optimization.

<unk> is a program that we're rolling out that leads to much better optimization of our promotions and our future pack price architecture.

The area that we probably put the most change in resource.

And so we've redeployed significant resource in the organization to beef up our journey here.

The area that I'm really excited by is when it comes to data and analytics.

So I've worked in confectionery salted snacks biscuits gum never seen a category that is responsive is as beverages like you talk about impulse categories. This is the super impulse category.

And it's because household penetration is so high.

The appeal of the brands are so high the ability therefore to get the display standards in the activation magnifying impact like no other category of experienced.

And when we look at our business, we get store level data to about 85% of our volume and either that customer data.

It's transaction data that certain customers provide for us it's part of a joint business plan that we have for things like <unk> restaurants.

And its airline direct store delivery data.

When we look at it you take the same customer and we look at their store profile. The variation from the average is significant so you.

You have.

Certain stores that are selling certain mix in certain stores and soon as you can get those insights you start to form clusters of behavior.

And what I would put you that people that can use clusters will beat the people.

Who use the average every time.

And because of our size and air market share in a field size, we actually have the ability to activate clusters.

That nobody else in the industry has because of our.

Our market share.

So the way we bring that to loss is we use it in joint business planning. So we will have a <unk> customer will use their transaction data and we'll show them What Bureau bundling looks lot bye bye.

So if you're selling chicken versus oops, I hit and why.

We've got pizza chains, where we will say to them you have got 10 restaurants that you ship that youll around closing too early.

On a Friday and Saturday night, because 75% of your sales or a Thursday to Sunday and when you look at how many pictures are coming out of the oven.

Closing time, you're closing too early.

So the data and analytics of the organization incredibly strong Coca Cola No sugar is another Great example, because if you work working with one of our reps into a store with I'll say to you. This stores, 55% no sugar the display standards of 55% natural gas.

What that means is if it is visible and available, especially during peak trading it makes a step change to performance.

And then we say key selling weeks and the variation no surprise in Australia. Those that are closer to the beach debater into selling weeks, we're incredibly responsive to weather, but the PEC type by area changes. So we can walk into a store and present to a store manager what case, selling awaken which packs need to be on display.

We also use it in a way from home and this is if it's a single dose reach what do we want in it and you can imagine when you have got something as precious as one door you don't want to load it up with low performance.

Therefore, ranging of the blockbusters seven 2019, we had more distribution of Mount Franklin more than 600 mill.

Once you clear of what velocity looks like and success.

And you can drive it.

And the field tools that support that are incredibly strong.

Large retailers that we learned from.

And I would have said in my journey I used to walk into a customer and just based upon leadership orchid. So to say here, what what would when you take into account.

The supply chain and the store footprint that you have said you know based on latest what would you now to me, it's who use their data the best.

And the leading retailers the way they using data in the way we respond.

So we do have an accelerated performance plan for Australia.

We're strengthening that plan through.

The acquisition and the integration focus that we've had.

And therefore, we do have a lot of confidence in our ability to continue to drive the business performance and the sort of financial objectives of CCP.

So moving from being a beta business on that I wanted to talk more about being a bigger business.

And the opportunity that exists for us in Indonesia.

Today, it represents 29% of their volume in Ipi.

It represents about half of that of our net sales.

Revenue.

And it represents less than half of our operating profit.

So gearing up growth and scale here will be something that's therefore accretive to the performance of Ipi and they will make happy that ipi is accretive to the performance.

CCP.

When you say the opportunity in Indonesia, it's significantly more than 270 million people.

Based in Indonesia.

When you look at the economy, it's the largest economy in ASEAN and if you fast forward based upon the sort of fundamentals the sort of prediction it'll be one of the big markets big economies around the world.

It has very low per capita consumption of ni OTT and the job to be done. It has very low per capita consumption of sparkling.

But if you look at some of the fundamentals the fundamentals are strong.

Because with that you've got a growing middle class you have got a young population and you've got encourage their organization. So all of those things will be a positive.

Tailwind for the category.

Now in developing the forward strategy.

On Indonesia have to start on shopper behavior.

And if you if you go to the sort of the <unk>.

<unk> holds with life of catheter consumption.

Small kitchens, a lack of refrigeration a lack of motorcars people shop frequently.

And so they shop somewhere between five to six days a week.

And for most people the notion of a daily shop would be something that they do so the winner at a local shop. Therefore is the general trade rather than the large supermarket.

Those that are in proximity to the home.

And if you picture.

General tried not a store we're talking about something of about 10 square meters.

And you can imagine the range that they can have set the shopkeeper once high velocity items.

And the shopkeepers, Pakistan cash because if I sell something to either want to replenish it tomorrow.

At a wholesale level.

On that supply chain, so S K U.

Driven business.

And then the rep to market that goes with it is incredibly complex between distributors and wholesalers to be able to get that rich.

Now as we've been sort of formulating our go forward strategy on on Indonesia, where certainly reached out to other emerging markets within the coke system to sort of get an understanding of the success stories.

We've done a whole raft of deep dives in markets, but perhaps the most valuable for US has been to study what the winners have been doing in Indonesia.

And the starting point with the winners.

They've been incredibly consistent over time, and if you look at our history outside we haven't been consistent we have some success with and add complexity we.

If we go back to bring more focus we had complexity.

So we have not been consistent.

But if you go to the winners I tend to focus on a few categories that tend to be very focused on the general trade because of its proximity to home.

They're also very clear of the prioritization that it's an S. Cayuga I'm sorry, if I said I believe the world of beverages as an impulse categories and S. K you gave me get magnified by 10 or by 100 because of how small the stores are and therefore, you've got to be able to put forward a very clear.

Clear picture of success.

So here, we've been obviously going through a journey, which is greater prioritization across the board so in portfolio in geography, and how we prevail raptor market effectiveness and then how do we bring people, especially to the sparkling category.

And then we also recognized being Indonesia that we have to demonstrate leadership and sustainability with a priority on packaging with a priority on plastic is the call out.

And obviously, that's that's the journey that we've been on.

Narrow.

If you didn't get a portfolio prioritization.

If you go to what the winners too.

And displaying a super impulse category.

It's the cornerstone for us starting.

So within the general trade network for US. This is a prioritization of six to 10 items that make a difference to distribution.

And in the in the.

In the modern trade, we're talking about 35 items, but.

But in the modern trade that would be nine modern tried store with 35, because you can imagine the kyocera outlet that we might be selling post mixed too.

Versus a bar that might be having some mixes versus the grocery stores. So it's got some different nuances to that range.

Now we had a portfolio of over 100 items.

And otherwise have you are we setting up a good person to do a good job or is it that complex that not even a good person could do a good job.

And if you aren't people with more than 100 choices to be made don't be disappointed when you say a lack of consistency in execution.

So I for here.

The transaction is driven at a SKU level, which.

Then drives category focus.

Now if you then looked at the stores that we were covering directly we had more than 20% of the stores that we covered that were only buying cup water and capture that had no margin structure, they weren't buying sparkling or at blockbusters at all.

Because if I'm selling I've actually got range of some volume as opposed to reach the important things being range within the store.

So the job to be done here is in reality priority one two and three is sparkling.

We've got three brands spot being our largest center and then really unlocking brand Coca Cola.

Our strong <unk> market, and therefore seeding that relevance to the future and then when you look at selectively in dairy and juice think of two risk high use only.

We have invested in those in the past we've got some velocity, but we're very narrow and our participation there.

We're seeing some early success in this this momentum, but it's a journey that we're on to see sparkling growing at the volume levels that we had is pleasing and a reinforcement.

We realize that there's a lot to be done here.

Over the last few years, we've also had in the shadow of a future of plastic tax or shadow of.

Yoga tax and those things are not clear.

And there's an election in 2024, so we'll have to wait and see how some of these things play out but.

But when you actually have a narrow range of 6% to 10 in general trade then you can do reformulation.

You can manage pack size changes because you actually have us a size of portfolio to manage and then you can start to drive no sugar as a part of that so we feel.

Having the portfolio that we've got allows us to be able to modify those options into the future.

At a geography level.

Everything about Indonesia is massive right 170 million people.

Seven 9000 islands.

One side or the other is like 5000 kilometers.

Three times items within it and it can look incredibly overwhelming.

But really it's about <unk>.

<unk> and Java is where the economy is at.

And when you look at where the GDP is we under tried in those areas. So we have good national coverage, but.

But we're not really maximizing where the heart of it is in the prioritization at a geography level.

Modern trade I think we've done a respectable job, there's certainly lots of tools that we can have theres a lot from activation.

At the modern trade the big job to be done for us is within the general trade.

Job number one to be done is actually what we'd be saying as high velocity customers.

Within the general trade. So we have approximately 150000 high velocity customers.

It would be more than 400000.

Within the market.

These customers actually.

I'll give you the sort of drop efficiency supply efficiency that underpins your business.

To those of you dummies, ranging there blockbusters within those outlets and whether we look at Nielsen data around data.

There's a job to be done to make sure that the blockbusters are arranged.

And once you get velocity coming through in outlet and velocity in the blockbusters than you can continue to redesign your route to market because you actually have efficiency to be able to manage that.

So the journey that we're on it on a rep to market efficiencies are going to learn from the win as it.

It is the combination of having your own direct approach with wholesale.

Before you get there you got to make sure that.

The combination is the winners in the market would be using distributors exclusive distributors to get to the larger stores and then wholesalers that provide the breadth of distribution. If you can imagine we'll set the country the number of islands that you'd get to with wholesale.

It's also for us about salesforce effectiveness, because we've had industry lower volume outlets a lot of our time is spent on customers that you won't get a reward that need to be covered by wholesalers and therefore, it is an optimization of resource.

And to do that you've got to have a digitization. So you can.

Troll RV business and your activation.

The job to be done in partnership with the card company is about driving the relevance of sparkling.

Iraq, there and Ramadan, you would get a different picture as to how you think that the market looks different perspective, it's incredible which level of relevance compared to the other months.

We've just got to be able to drive this harder its a great area for recruitment.

And then the opportunity is to make it more relevant all year round.

And we do that through the combination of bright meals, but also the passion points of music sports and gaming and that's great for them very important for us to recruit.

We did want to take a leadership position on sustainability, we have managed reduction quite well in history.

But establishing recycling within the country becomes the case.

As you can imagine the infrastructure is not great. The.

Consumer behavior around Washington, rubbish, not developed like you would know it but.

But what we have to do is set a journey of our exploration. So what we've done here is we've invested in a joint venture with a local company on an op at plant.

It's a world class facility, it's up and running next year that facility will produce 25000 tons.

And about half of our total plastic needs will be through our pit.

Through this facility.

To talk broad the feedstock for that we then had to provide the collection system and we've really tried to learn from places like Mexico and how to do this.

And in the collection system. It starts with the tickets and there's about 5 million waste pickers in the country, who will take material if they can get value by putting a value on the plastic the pickup makes money, we didn't have collection centers, who sort of material.

Then it gets bundled and then we have a non for profit who oversaw its the whole area from a sustainability and human rights.

Been a massive investment this is an area that we really tried to take a leadership on plastic within trying to throw the challenge to our large competitors to do lock was and if you can imagine in a country, where there's lots of small packs across the board.

There's a job to be done of trading this industry.

So from an India, Indonesia perspective, we understand it's about setting the foundations right.

And we're very clear about its long term opportunity.

And I think the thing that I've really found different in presenting this to Damian and Nik, it's actually having patience as we've been working through it and having come out of <unk>, where there's a lot of frustration about Indonesia as we presented it is let's get it right, let's take their time, let's make sure we make the right decisions and I think that set us up really well.

But it is one that we'll learn by doing.

And then to give you a sort of a sense from the acquisition and I hope that what the presentation. There's more to life. Today is that we are very excited.

And you have to be a part of CCP. The integration has gone brantley.

You can say that if you don't if you don't have momentum than it probably doesn't have credibility we have good momentum with <unk>.

Recognize that in the results within the market share within advantage.

We do believe we're a better business now in the key markets that generate the profit today.

And we think we're setting the foundation to be a much bigger business in Indonesia to the future.

So thank you and I'll now pass the state of Alaska.

[music].

Thanks Peter.

In 19, when we were doing the due diligence we were looking at what the plans would be and the opportunities.

Fantastic to see the progress and the headroom for growth that we see in a lot of that we based around our capabilities and the capabilities for the future and making sure that we grasp of the opportunities and a brighter future as I shared earlier, so we'd like to share with you. Some of those capabilities that we believe are going to make sure.

C P. What it is to be a fantastic business to grow and invest and to create shareholder value for ourselves as well as our customers. So myself and a number of the team are going to share some capabilities and what we think is going to make a difference for the future.

And really it's all about what we call joint value creation and joint value creation with our customers.

We're going to take you through the story of how we do that around the wheel from our signature program, which is around about how do we deal with customers and work.

Two our ability to drive revenue and margin growth for ourselves with our customers in the category.

Enabling our future digital capability.

We learned and we progressed and we invest some of that capital from Nic into our future capability.

And then being able to use that with smart execution, some of which Peter is to share them.

Other examples and then lastly to be able to show you what that means when we bring the future forward in the future back as the higher supply chain is going to enable great success with our customers.

So really starting about world class customer management and this is all about why someone or a customer would do business with CCP and we call it our CVP our customer value proposition.

That is what they get when they do business with CCP and how do we serve them across the different elements of our portfolio our vision our ability to grow margin all the way through the wheel to what we then deliver.

In hearing.

The numbers like Peter on the number one advantage and the ability for us to pivot quick with those capabilities is critical for US and this is something that we're very focused on as a large part of our business and many of our markets as both retail and either from customer and that's critical for US as we continue to build up for the future and the next.

Coming years.

And we understand what our customers need and we have spent a lot of time since we last met many of you at 19, all the way through the pandemic as we come out and eye on being able to upskill our capability. So understanding the profit pool, where the chase the money and where the value is for ourselves and our customers on how do we create that value what.

We are able to do then through data analytics on our capability to drive revenue and margin.

And obviously, ensuring that as Peter talked about joint business plan that we're able then through a functional ways of working to deliver value.

And our customers are quite simple and what they ask us for if it's in retail it is to get into more households.

It's to make sure through more households, we get more baskets and through more baskets, we enabled more stores and through more doors, we drive more margin.

And if you are in away from home, it's driving more people through the door driving greater incidents of a beverage with a transaction per incidents on in the market and that way how do we create value with both retail and out of home.

And to do that we obviously need to understand better our customers.

And that's where I would say we've made a lot of progress and we continue to challenge ourselves that we need to make more on the capability of high we bring insight into the capability to drive growth and that mindset.

And you're going to hear a number of areas of high we've created where to play hide the action on the hydro win with a number of initiatives and investments that we've made as we go forward.

And we're not there, but we know we've got a lot of progress to make and Youre going to hear from the team is that three customer on how do we drive margin through promo optimization, along with price realization, whether it would be understanding where you go to find the money with profit pools with our customers to obviously when you are an indirect or direct markets. How you use data to try and.

Find headroom for growth and then how do we activate our frontline, which many of you have met this morning with tools to be able to make that happen.

So with that I'm going to pass over to young team who's going to talk about revenue and gross margin.

Thanks.

Thank you Steven Yes, I do think R&M, Jim is one of our essential capabilities going forward. My name is something equation I joined <unk> eight years ago to build the IGN capability in the Dutch business, Netherlands, and then progress to become their retail director and the Netherlands.

Working negotiating and clothing with retail customers and then I moved on to our Grupo for international customers and now solely focused on revenue and margin management.

Management.

And we want to continue to invest in that as a capability for three reasons.

First to expand our strong foundations in growing <unk> to also maximize margin growth.

The traditional RDM differentiates us price promo mix and we want to have the capability of strange a capability to do both grow the revenue and maximize margin and that's also why from now on it will add to.

And MGM.

Second because we still believe and noted had lots of headroom for growth two smart arent MTN.

In away from home as in home channels.

Tariffs because you want to proactively grow the customer profit pool.

So with our customers and also capture our fair share of it.

And as a strong link between the West Coast Key account management program, Steven talked about and are in MGM, and we really truly want to be that entity is able to create win win with our.

Customers also in the area of profit growth and margin.

So the headroom.

We not only indentified the headroom, but also indentified, the leveraged and it broke and still capture the hurtful.

And that's also I am personally very passionate about arent MTN, if because you always start with the hedge book.

And the identified the programs and the need for us that will support our midterm cultivation of personally 4% revenue growth.

And volume.

And next we will all be important contributors to that.

Let me give me a few examples of volume you're already here.

And Stephen talk about category growth potential.

Let me take the example of increasing incidents innovate from home.

And its incidence here, we mean, how often you buy a drink lithium meal.

And we can learn a lot still across our countries and by simply bringing our efforts to the best in class countries like Spain.

And also here, we can learn a lot from Australia.

Nowadays set together with one of their quick service restaurant customers and they set ambition to bring the incidence from run Terex.

50%.

And then as you heard Peter talk through using the customer data not weekly.

Really daily and hourly.

They learned about the outlets executions and benchmark to outlets to really drive that incidents with our customer to meet these two having derived on the cocoa petitions to activations together.

After a year they hit roughly the 40% Mark and after two years. They are really close to 50%. So also times EMEA was bought also doing his thoughts and Thats. What is clear is our customer the delta that equals the top selling food item.

Theres a lot of value there for our customers and for us.

On price and mix you already heard about the strengths of our Beck our stacked here.

And that strength of the <unk> <unk> is also helping us to offset the Cogs inflation.

Because we are present in all price tiers. So.

So from below one your 52, two euro to six zero et cetera.

It allows us to segment headline pricing.

The vast majority of our Skus himself sparkling still at low to moderate price elasticity.

And this also helps to gauge of consumers that are maybe to the cost of living increase looking for more affordable options.

So be it a lower out of pocket spend.

Or more better value for their money in promotions or a multiplex.

You already saw that today in the market in GB, but let me also give you an example from Germany.

In Germany, we sell roughly 40% of our value in coal ash below one euro 50, Hello, when you're 50 as an out of pocket spend people pay for the products.

And then roughly 30%.

So then the whole range from one year of 52, six Euro 50.

And then another 30% is sold above $6 50, as an out of pocket spend so let's say yield spreads.

And it does allow us to play with the pet price and promo combinations in order <unk>, but even within the same BEC.

So we sell for by one half liter small pets at a multi pack in the German business Michelle at four firstly for Euro. So that's in that mid tier and we sell it then for two year of spending to average.

The same havlicek bets you're also selling is a loose items include a slide you see here in the back.

And they are in the front of store and a retail store, it's really an impulse item.

And we sell it for.

Those two one year of 'twenty.

If you calculate fast you see that's two year of 40 per liter. So that's 40% more than the multi pack and votes are setting great and thats.

One of the mechanisms mechanisms, we can really use to two segments, our pricing and our headroom thereabout also staying close to their consumers and gives them offerings and all the price points they like.

Let me also talk about the small pack growth opportunity you already heard many examples earlier today.

And we still believe there is a lot of headroom to grow the small packs in the business.

Especially when you look to the shopper needs and consumers any segment our shop us.

In Europe alone 45 millions of shopper millions of shoppers already by exclusively smallpox or really across all our pack size and types, that's roughly 50% of our shopper base in Europe .

And those shoppers are still.

Willing to pay a higher price per liter and he can trade them up as we call it and making them by more and more often.

And within that group the group that really buys across all our tech types is the fast growing group and expand share of wallet three times more than the other groups.

And he can drive a lot of execution in that so for example, the Netherlands. He built a bullet five small packs on the shelf so really the shopper when they go into heavy at the store at are confronted with a whole kind of wounded far of small tax not only for us but for the whole category.

In Belgium, the simply out of the shell small packs on top of our large pet pellets in a discounter.

Also in this kind of small packs so.

And then the last example, I'll give is also involve sale maybe channel you might not think about fairy easily thinking about that mix.

But this is a case study for them to be.

There to get them at a wholesaler than they were starting to sell more and more of their sales online so more than 60% of their sales are coming from the line.

We were helping them with Jones customer planning.

<unk> really drives the shales across the full range of our packages.

You can see on the screen is there two shirts and optimizing shirts items on their websites.

Their customers are not only drawn to ramp back.

Across the whole range to really also share their customers with a full range individuals barrick rates basically drove Chris 90% revenue growth just by working together with the customer on this.

Indeed, the shirts items. He also did other things training their salespeople for example, working on activation.

So we will continue to build the capabilities, we will work with our already.

Strong local end market seems to be already have in place and RDM.

And we will continue to support them also with tools.

And just highlight shortly three of them we already have in place. So one is trade promo optimization or PPO, we used to drive the promo ROI than we are.

It's a fight and profit tool that helps the team's on that profit pool ambition medicus tumors and ourselves.

And then we have vertical Pogo and Pogo is a tool that actually uses all the data we have.

To make a picture of the future potentials in outlets and Thats been seating in our frontline sales tools for example, like read one.

And rather than selling let me show how these tools work day to day in the markets.

The trade promotion optimization tool.

Central platform to optimize the return of investment on promotions.

<unk> guided promotional recommendations delivered immediately a quarter of a million dollars of revenue in the Netherlands, all by switching promotion mechanics, John CCP key account manager has refresh data and improved recommendation to choose to promotion mechanic for each products and customer this will give the highest returns.

A massive game changer for our commercial teams is the price and profit to a deep dive analysis of customer margin is done within minutes instead of weeks Panna and CCP revenue growth manager can now focus on the face informed and valuable conversation.

Automatically identifies opportunities to increase our profit to optimize volumes.

Powered by those insights we win the customers.

Most of the revenue supplier.

The capability of consumer behavior data.

<unk> field sales teams in a fast paced environment to the best performance.

Our platform for Gibson.

Gibson in fact, we have an approach.

Identified immediately thousands poorly Kelly.

It helps identify prospective customers. It also informs field sales territory planning by showing the outlet headroom for growth how much we should be able to sell in these outlets, whether they are customers or not.

That's not all analytic slides marketing activation plans effectiveness in Spain to generate a return of $5 5 million euros improve forecast accuracy in Germany by 7% and is driving savings in CCP overall procurement spend.

CTV is delayed.

During when you from analytics, Nick will manage data assets better and scale photo smart actions drive superior performance for our customers powered by ACI.

Yes.

Yes.

Yes. So that's provides really a snapshot and let me hand over to Dave Martin will tell you more about our digital capabilities.

Yes.

Good afternoon, everybody My name is David Martin.

And part of the group commercial function.

My role really is to look at how we use data technology.

New sales channels, and new business models to drive incremental and profitable revenue growth.

I think we'll see he pay per hour nine years always working in this particular area.

C. P. My background is customer site.

Building and running online grocery and general merchandise businesses for the likes of AST and Morrisons Jakarta infrastructure in the U S.

We rarely have I suppose two key use cases against which we built our digital agenda and CCP.

First one is how do we make it easier for customers and shoppers to buy from us.

And the second is really around how.

How we make it easier for our frontline colleagues to sell.

And the role that I have with my team is to as I said is to enable that commercial strategy and build the solutions and tools that allow our frontline teams to go and drive.

<unk> and revenue growth in the markets.

So if we talk about how do we view the opportunity around digital revenue growth is really based on three pillars.

The first one is around our customer portals.

And this is how we make.

Easier for our customers to order from us, but probably more importantly, both for our direct and indirect customers. How do we be the best TCP that we can be for them, helping them to grow that businesses witten through our portfolio.

The second pillar is around winning with the winners so whether the speed. The online grocers are wholesalers, who are increasingly moving online the food delivery platforms or the quick commerce platforms, how do we ensure that always putting our best foot forward.

How do we make sure that we are delivering the perfect digital shelf, so obsessing around execution online as we do in store.

But also how do we develop the activation plans along with the Coke company that actually really allow us to drive additional bosque adds additional drink citizens through the platforms that we're working with.

And the third area is around owning the future.

So this is about understanding how we can develop new routes to market that service both customers and consumers.

Not new revenue streams for us.

But it also gives us new ways to engage with a broad church.

So in terms of the <unk> platforms, we have a number of initiatives that are running across our markets. Today. Some of those are three partnering some of those are through equity investments. We've made for our ventures team, while we're really starting to understand the opportunities in this new space. So we have a light collects in Germany, which is a partnership with <unk>.

<unk>, we got an equity investment in our business in the U K called Star stock and then we have a pilot in Portugal, using the company owned platform whereby a.

Lots of really interesting learnings for us here and really starting to form.

Our understanding of what we need to do more proactively in this space.

And then from a consumer perspective, we continue to learn and build capabilities in this space through the ongoing development of your Coca Cola store in GB.

As Damian has alluded to already actually a significant proportion of our volume is already captured through digital channels offer digital touch touch points.

So whether that be the way in which we work with some of our bigger customers through <unk> solutions.

It has to be the revenue that we process through our customer portals.

All the revenue that we're generating through our frontline colleagues, who are using digital tools to take orders in outlets.

85% of our volume today, and obviously, a big drive for US is to really understand how we can move that number up and close the gap.

What I'm going to do now is focus on a couple of key initiatives. So I think that really bring to life. What it is that we're doing so the first one is very much about the first use case of how do we make it easy for customers to do business with us.

So this is our customer portal, so hey, we're talking about my CCP in Europe , and <unk> in Australia, and New Zealand.

This year, we'll process around 2 billion euros worth of revenue through these portals, which is up around 50% year on year.

And our focus really is threefold.

First one is of course to continue to understand how through the use of data we can grow incremental sales and the lifetime value of the customers who are currently ordering through these portals.

The second opportunity is how do we increase the ordering footprint. So looking both within our existing markets, but I'm, particularly excited about the fact that before the end of the year, we will launch the <unk> platform into Indonesia to start to service some of our <unk> and modern trade customers.

And the third area is really how we actually start to use the portal as the only present element of our omni contact strategy to be always on for all our customers. So 24, seven we are there to help them grow their business with us through our portfolio.

So I've got a couple of videos.

The first one really is just I think to look at <unk> and some of the key functionality that exists today and it's supporting our customers as they work with.

Our business say play the first for Jay Please.

Welcome to my don't see C. P dot com Youll Coca Cola customer portal offering all your benefits in one place.

Z product ordering and convenient self service everywhere anytime no matter, how you choose to engage with us.

At mind on CCP Dotcom ordering online is simple fast and secure.

Create favorite list order and reorder with just one click.

Thanks to watch ranking system you can follow the status of your orders invoices other requests 24, seven and wherever it's convenient for you.

Your personalized dashboard, obviously with clear overview of all your activities at a glance.

Find your orders invoices in theory, but also the latest user trends valuable tips and insights precisely tailored to your needs.

It to single point of access to an ever expanding range of tools and services, helping you to grow your business.

And it's not just a great products and services that are available on my don't see <unk> Dot com.

Account, depending you'll be able to order and manage your Coca Cola coolers access to point of sale material.

Much more.

We have an exciting pipeline of innovation plan with your business in mind, helping you to optimize your revenue.

So stay one step ahead with my don't see CEB dot com everyday success.

Sign up today at my don't see C. P dot com.

And I think it's always good in these sort of events or just have the voice of the customer in the room. So as I said you know one of the big opportunities for US here is how do we open up the portal for our indirect customers, while we may not be selling them product, but there's a huge amount of advice and help and support that we can get them. So.

We've got a short video.

With some of our touch customers talking about how <unk> is supporting that business.

Okay.

Yes.

Or even Diego economic on Diego's America, the homegrown without critical products for them too.

Phil.

The sewer force that there were four acre by hockey club final occur.

I, even payment and some of them are viable and speed of onset <unk> vessels and delta.

<unk> platform is a market for answer Nebraska.

The outlet platform.

<unk> promotes the materiality to download it and cut it out and enhance cantina.

Oh, yes.

For sure like the Vas.

But they love to drink the Aquarius after our training.

They seem to be able to quote I was taught is patsy.

Well the volume on the battlefield, not a neutrophil pharma plus point revenues, but that's what to do.

A doctor in Lhasa Huntington list stabilization office whenever that may be for consumer vehicles.

But he'll market with a 6000 meter nice cloud.

Popcorn is open at Google, who drives as click click click and Milton.

Accordingly, the lines when it comes to all my bad things going on.

And with our outside in here look like in a mouse ever and that is all types of here at summer.

Summer met in Switzerland from Coca Cola.

And met with loyalty Commerce forever.

The outlook for the club.

The Mississippi market two of them.

Look on promotional markdowns.

Cambodia.

The island, two fathers asama macro orbitals labored office doesn't matter, who could allow enough novel Coca Cola Savannah in restaurants.

Possible.

<unk> biomedical, there's nobody who do this had been a barbecue sauce micro Basel from Coca Cola.

Those backwards.

Yes.

And the second initiative going to quickly touch on is our strategy is really working against the second use case, which is how do we make it easy for our frontline colleagues to sell.

As David mentioned earlier, we have 10000 colleagues every day every week every month going into our customers' outlets and having conversations with them around how we can drive better execution and how we can drive drive growth through their outlets by better utilizing our portfolio.

At the heart of this of course is how we use data and analytics.

To drive that smart execution agenda, but the reality, obviously is in the hands of the frontline colleagues they have the red one tool.

Now.

Many of you would have seen.

The tool in action in the field visit this morning.

But what we thought we'd actually do is share a video of from.

From the New Zealand team actually about how.

Their adoption of reservoir generally has driven that business and sort of hatred touched on this already how they are using data and technology to really improve the efficiency of their frontline colleagues and really drive more valuable growth conversations with customers.

Hey.

Alex when we play the video please.

In arterial and use eland, we're riding a wave of success that continued in 2021 with growth across all our key metrics. Despite significant market headwinds. So how did we do it right execution daily is at the heart of our sales business and is a key driver of our sustained growth for <unk>.

<unk>, our brand partners and just as importantly for our customers, we live and breathe reads in every part of our business. So we've doubled down on driving efficiency by investing in technology tools and capability. So our teams can spend more time selling how world class in house developed Sam platform tracks performance.

It's range, she and activation, ensuring we consistently achieve execution excellence in every outlet we leveraged the power of photo recognition technology to measure the hero visible inventory in three D picture of success to deliver faster conversion of opportunities the right platform partnered with our <unk> technology.

Allows us to manage a broad portfolio as well as a diverse customer base, we have access to real time data, which helps drive profitable transaction growth not only for <unk>, but also for our customers, we serious about supporting our customers and for us that means face to face relationships our investments in our high touch model means 80% of our customers.

<unk> seized with two weekly recall and delivery and our co coverage is 74% of all available outlets in New Zealand. This provides the platform to deliver a world class execution metrics and to build strong lasting partnerships with our customers.

Our CVP sales team using the same platform information provides helps us monitor ourselves and grow our business.

Super satisfied with the same technology had been so much value.

Read mantra drives every part of our business maximizing value from our diverse portfolio driving excellence in execution and delivering great results for our customers our business brand partners and our people.

Yeah.

So a fantastic story from the New Zealand team.

<unk> pre excites me about all of this I think is our ability to share our successes.

And I'll failures across the market, which is ultimately, allowing us to go further and.

Foster's together so that's just touching on some of the work that we're doing the space a lot of progress is being made we see a lot of.

Further opportunities in terms of how we can use data and technology, but I'm now going to hand over to Jose Antonio Who's going to talk about customer service and supply chain.

Yes.

[music].

Hello. Good afternoon, My name is for Santana Tiberia in.

Has 25 years' experience in consumer goods industry, and I joined CCP 18 years ago at carving up the Spanish lithium Butler at that time and now on that.

Lucky enough to lead the customer service and supply chain organization across CCP.

E at CCP will have medically or what is the strategic role of customer service and supply chain and I will summarize has supporting sustainable growth and profitable growth through a strong focus on our customers and doing that through our people and in.

Novation mentality, and especially about technology that really support business growth.

Well, it's difficult today to in these times to talk about supply chain without recognizing the headwinds that we are facing in terms of commodities or the difficulty is coming from the geopolitical situation and the volatility on the global supply chain, but in this environment I can say that <unk> and CCP, we are improving our performance.

We are improving our performance through tools like optimizing our our portfolio as you have heard previously from from Peter we have being able to reduce the total number of fish ku by 30%.

Yes. The fact in the case of Australia that means that we the timing that we are saving and changeovers, we're able to produce 6 million unit cases. Additionally, with the same equipment and clearly we continue with our improvements in productivity and that had allow us to really consolidate some of our manufacturing plants in Germany.

Also in Iberia during the last years and also some of our distribution centers.

Keep on working on building, an innovation mentality and innovation co chairing CCP and we're doing that with our partners of CCP vendors and we are working with them in different in different topics like sustainable packaging different route to markets or logistics or even sustainability with a project that I'm really excited about that is D.

Is it a capture trying to get and remove the sheer two from the air directly in order to reduce our carbon footprint.

And also one of the innovations that we are now.

Having is our innovation labs I'm very excited about that we have just opened two innovation labs for customer service and supply chain one in our plant in Barcelona, another one in our planting and badly let Michelle model with that through a video play the video please.

The next labs will unraveling and future innovations positioning CEB as a beacon and sustainability and innovation designed to be a physical and virtual space that adapts to each visit showcasing our latest products and services unifying the digital and physical experiences while offering an ideal.

Place for open innovation, bringing together our employees customers suppliers and startups to give life to our core values at every touch point. It's a journey that we have already started and that will continue evolving and expanding across.

Territory to enhance our innovation capabilities to develop new ways to support our customer and become a more agile and resilient operation.

And as I have mentioned, we continuing investing in technology and technology that supports growth and productivity in our customer service and supply chain organization and we are investing in almost all the areas of the end to end supply chain, while investing in our areas.

<unk> with new tools that allow us to use.

Artificial intelligence or machine learning in order to synchronize, our forecast and our supply or managing our fleet our logistics through the advance transport management system that allow us to really not only optimized online tracking of what our fleet is doing and being able to connect with our customers in order to deliver that.

Information about that or getting all the information with our coolers in the market information from a technical point of view, but also from a commercial point of view, but probably one of the areas that I would like to share with you today about the factory of the future industry for Brinci, though that is starting to be a reality in many of the CCP factories and for that let me.

<unk> through that through a video please.

We have multiple initiative latest HIV program that allow us to have 24, serving operation without labor interventions in order to support the power operations in <unk> for instance, in one of our German factories.

The use of <unk> technology in <unk>.

To ensure the safety of our operations from a track point of view from our people point of view and also with our FERC <unk> using five year with Internet of things in order to detect politians before it happens.

Or the use of digital twins in order to optimize our warehouses, yes acts as an example in this case in this factory in Germany, where we're able to to get 1000 additional pallet position, yes optimized.

In a dynamic way, our warehouses or using a <unk>.

Mental reality to support the <unk> Lange operators connected directly with the suppliers that allow us to get it to get technical advice on how to fix.

A breakdown.

Or using technology put our operational excellence routines, having directly online all the information and allowing us to connect.

With teams for instance, in the night shift with all the people.

The use of.

Three D printing in order to bring spot.

Spare parts.

When we are in a in a situation that we need it and that's all link.

Exactly with the suppliers that allow us to really save a lot of time and reaction time in.

In our spare parts and this plays which is really exciting languages.

Self driving electric truck that we are really testing in my timing wrong with our German factories to move product across the factory without human intervention 25 hours, a day and on top of that with an electrical driver.

Quality control automatically done online for robots and they are able to really to.

To check the.

Quality of the lag can without human intervention I think that we are well equipped in order to face the future and all the productivity challenge that we have ahead of us.

That's all from my side looking forward to receiving you tomorrow at shift up and let me hand over to Anna.

[music].

Good afternoon, My name is and I am in Canada Public Affairs communications and sustainability in CCT Igen. The Coca Cola system also a longtime ago 22 years ago, and you'll see we'll enter in and very very young in this company.

And yes I.

I want to go through their roadmap in sustainable Adi was.

The company with no no no.

Timing marketing after in.

Consumer positions in customer positions and afterwards, and sustainable 87 year cycle agenda the bottler.

And currently with Israel since January so as you have seen today, although sustainably is a key piece in all of the parts of our business and you have seen consistently that everyone has been speaking about that so.

But we have a story behind.

In doing this way. So we were one of the first companies incentive science based emissions reductions targets in 2015.

And two years after in November 2017, we launched the first for the farmers and Coca Cola European Partners.

But our sustainability action plan called this is forward.

It relies in in all of what we are doing to add value to our shareholders also to add value to the communities in which we operate until the environment of course.

And we have done so far a lot of progress into shifting into 100% renewable electricity investing also in collection systems in venues for Recyclability also in recycling and recycled materials and finding solutions for more sustainable packaging and we just don't that's too.

The environmental piece, but we of course also touch the social part.

And try to have more diverse workforces as <unk> mentioned previously and we also work on developing the communities in which we operate in and help them to for their employability.

But I will go a bit more.

And we are getting into Canada with recognition for this as you can see here in 2016, we entered in the Dow Jones sustainability.

Index and also in the CDP a list both for climate and water in the same year and we have maintained ever since.

Also very recently got the.

Recognition from the Coca Cola system for our ESG performance.

Austin Award.

And also echo that is which is a tracker that measures. This is pat.

Inability in performance in our supply chain has recently also awarded with a platinum medal, meaning being among the one 1%.

So where are we going now since the <unk>.

Acquisition last year, we have been working in extending our commitment to include the Asia Pacific and Indonesia territories. There and this is what we are we have a data now and I will give you an update on that.

So we are updating our inclusion and diversity targets and social targets beyond gender.

<unk> also eyewater targets and introducing a new society target. This of course is very aligned with the Coca Cola company in order to be a world without waste.

Our system also to achieve that.

Social impact holes and this and then waste security goals.

We have done is setting more mass you are able to target some of our both targets.

<unk>.

Time bold and Ah.

Committing 20 targets that we that we have.

We are going to external assure their.

Their performance.

So.

This is the structure that we for consistency maintained because we believe this other pillars that are the key ones are the material ones for our our business, but also on what's more importantly, Q1 for our stakeholders. So.

They have 20 commitments have ASCI so to Boulder.

Well commitments in it some of which you are seeing here now and especially proud to highlight the society, one which as you saw previously contains the internal dimension one.

Which means 45.

Percent of management positions are female.

And also meaningful all the workforce being one third of it a female but also adding the.

Disability targets there.

And ASIC and some external commitments supporting the skills development of 500000 people.

By 2030.

Going to environmental commitments on climate.

Especially related.

We work very heavily with our suppliers in order to achieve our commitments and in order to get them into half science based targets also and to have 100% renewable electricity.

On packaging, we are of course, working very highly here and we are working towards achieving.

The targets that we that we wanted to meet the challenges that we face with the packaging. We are theyre investing in recycling facilities that we as we recently did with our joint venture in a recycling facility in Jakarta, Indonesia and in order to act upscale the collection and the recycling bottle to bottle.

Also we are investing into rolling out our debt.

Cap and closure in all our plastic bottles in all of Europe . Among this year and next year of course, we are continuing investing in our recycling and recycled materials and <unk>.

<unk> that we include in our bottles.

And we are investing also in ventures in order to find solutions to get more sustainable packaging.

Going to what are we adding to the commitments that we already had and in order to align us with the Coca Cola company, 100%.

Great innovative water commitment in our leadership locations, which had those ones that are.

And the water.

Stress or that are more water.

Related also our drinks you said already that we are making a lot of efforts in promoting our low calorie sweetener strengths and also in reducing actually aware of our products.

But for everything we have been done so far they are still much more to come in the medium fit immediate future. What we are doing currently is updating our two.

2030 reduction emission targets.

Including the Asian Pacific on Indonesia territories to Orlando, and then with science based targets to and we will update you as soon as next year also we are working including a new target and we used to ball.

To respond also to the commitment that recently the Coca Cola company has done on including.

We use it both targets in.

Within our strategy and we will update you also soon on this and also being very aware of how biodiversity.

It's really important is being impacted by valley change we are also.

Introducing new commitments Elia diversity on nature and the first steps that we're taking is taking part of the science based target network engagement program.

Our cooperation so that we can validate and study what the.

The impact is of our value chain within the nature and we've been biodiversity in order to set a target there.

I would like to finish by explaining how our sustainability agenda is really linked with our value creation in our business with some examples. So for example, we are offering.

Our sustainable packaging solutions like we recently did in France in order to.

Help us help customers with their margin growth and we recently launched in all of our products.

And returnable glass bottle.

In the hurricane business in hotels, cafeterias, and restaurants being the first non alcoholic ready to drink supplier in offering there.

Deposit system in this channel also by offering electric vehicles for example to our employees we decrease.

Our C O two emission.

And as well as we achieved also employee engagement, we also by delivering solutions.

Offering with more recycled <unk> Pamela we delivered to consumers where they are they are waiting for all sorts of customers by delivering also packaged solutions we eliminate.

Materials.

And we drive innovation for consumers build customer loyalty and also offer a lower cost.

By enhancing also digital workplace for example, we have light travels we reduced opex and at the same time, we get also higher.

Employee engagement, so that's our approach.

This is forward in action in our Plaza at the heart of everything we do.

We are very aware that that there is a lot to do still we have a long way before us.

For in front of us, but we have the <unk>.

Areas, where we have the commitment we have the ambition the conviction and the right partners in order to achieve them. So thanks a lot.

So I think we're ahead of time.

So thats great news. It means we've got more time for Q&A later, so we look forward to that.

Before the break.

I just wanted to.

Kind of wrap up with a reasons to believe slide I won't go through it we'll have hopefully hopefully from what you've heard this afternoon from.

From the size of the opportunity.

Clear strategy to extract value from that opportunity for shareholders and our customers.

Most importantly, the people and capabilities to execute because clearly having the opportunity and the strategy a lot of businesses can be good at that but it's bringing that to life in executing it consistently across all of our markets on the hope that what we shared with you gave you feel that we've got the people the capabilities and in a lot of cases now that technology in place.

So we've got a 30 minute break I'm sure everybody can do the drink.

The drinks today.

Alex first touch later.

So we're going to go to the third floor Sara.

The highlight of after the drinks as you got to listen to Nick.

Don't be like 30 minutes early.

Thank you.

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Demand in Nashville.

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