About our founding pillars

Transcription

1 12 BUILDING THE FUTURE Strategic vision About our founding pillars Objectives Creating value Supported by our original values, at Coca-Cola Iberian Partners we focus on creating economic and social value in the territories where we operate. Commitment to growth We commit to continue dedicating all the efforts and resources necessary to seizing every opportunity for growth. Exceptional model We have scale, financial and management capacity, and an exceptional relationship model with The Coca-Cola Company which is a reference in the Coca-Cola System.

2 annual report Pillars Good Corporate Governance 8 1 Our professionals Iberian region Good governance and management transparency Preparing our team for the future Our consumers 7 Adapting to each country's reality Offering a variety of quality products to our consumers 2 Participating in society to promote well-being, solidarity and culture We manage to help our customers grow 6 3 Our customers PARTICIPATION in society Respect for the environment Establishing ties of responsibility with our suppliers 5 Our environment 4 Our suppliers

3 14 BUILDING THE FUTURE Strategic vision... Building the future Here at Coca-Cola Iberian Partners we face the future with a great ambition for growth, based on our management and financial capacities, with the firm intention of generating sustainable wealth in the societies where we are present. The Origin Coca-Cola Iberian Partners was born out of the spirit, knowledge and experience of eight concessionaires (7 Spanish and 1 Portuguese) of The Coca-Cola Company, bringing together 60 years of experience of success and value creation in their areas of business. Guaranteeing strong growth In fact, the new organizational structure is already delivering the expected synergies and is proving able to articulate the company as a whole. This change in the way we understand our organization will help us achieve our goals for the future. The whole process has been directed with a view to guaranteeing strong growth in the medium and long term, preserving our original values. Víctor Rufart CEO Our commitment to growth translates into new categories and new markets, always hand-in-hand with The Coca-Cola Company and our people, the key to our success. The integration of the eight companies that today form Coca-Cola Iberian Partners has been a fundamental key to starting to build a company with the capacity to meet the challenges presented by a future of strong competition, while taking advantage of the opportunities offered by an initial recovery of the economy and consumption in the Iberian region. The speed of this integration guarantees our future and growth, and has placed the company in a position to meet the expectations of customers and meet the demands of new consumers. Therefore, at the end of 2014, Coca-Cola Iberian Partners is much better positioned and better prepared to meet the demands of the market environment than the eight companies were before the merger. The result is that Coca-Cola Iberian Partners is now the top company in the food sector, a leader in a fragmented industry (there are more than 12,000 companies) in which it is essential to have an adequate growth strategy.

4 annual report Our way OF BUILDING BUSINESS... Our team is highly capable of adapting to market needs. Our professionals have a healthy spirit of 'non-conformity' and adjustment to change. In addition, we are firmly committed to innovation and we respond quickly to new consumer trends. Flexibly Responsibly Essentially We are committed to acting responsibly, in a manner which guarantees the growth and future of the business. We establish sustainable and lasting relationships with all stakeholders in our value chain. We want all players in the value chain, from suppliers to our own team, to perceive us as a key partner, because our main goal is to help them grow and add value to their relationship with our company Milestones Single organizational design Integrated corporate reputation model Integration of the back office system, through the Shared Services Center Commitment to local society New Route to Market and business development model New Procurement model Single corporate identity Integration of the supply chain Management system and unified policies for the Environment, Food Safety and Quality, and ORP. Implementation of Flexifficiency in the Industrial Area Corporate governance based on transparency and accountability Integration of Information Systems Unified Customer Service model Portugal, creating value for consumers and customers Unification of corporate information through Reporting Factory

5 16 BUILDING THE FUTURE Strategic vision Our strengths GUARANTEE SUCCESS To achieve sustained growth at Coca-Cola Iberian Partners, the company has extensive experience in the business that has made them the No. 1 company in the food industry across the Iberian region. Linked to local realities Client-centered Effectiveness, efficiency and quality We support and feel committed to the communities and territories in which we operate. We are forthcoming and flexible in partnerships with our customers. Our goal is to help them grow their business. Effective, efficient and delivery of high-quality results. We are close to our customers and have the ability to respond to their needs with a personalized service. The strategic commitment of Coca- Cola Iberian Partners is well-grounded in a solid understanding of our work and great confidence in our values. We also have a number of strengths that make the company the clear choice of the future. Management capacity The talent of the large number of professionals in our company is a major factor in the different phases of our business model. Our team is a repository of knowledge on how to work in a complex market in a particular and unique way, with toplevel management. Thus, we reach nearly 400,000 sales locations, with a service characterized by high levels of excellence, thanks to an industrial process and an agile and flexible supply chain. It is our people that drive the success of Coca-Cola Iberian Partners, and we are committed to developing the talents of those who are part of this company. Financial capacity The size of the company, together with the fact of having started operations completely debt-free, guarantees the financial capacity necessary to grow. We are focused on generating profits that provide reinvestment opportunities for further growth. Growth capacity Growth is the core of our strategy for the future and is marked by the opportunity of new categories and new markets, always in conjunction with The Coca-Cola Company (TCCC).

6 annual report Focused on consumer needs Close relationship with Our focus is on the consumer. Working shoulder-to-shoulder with The Coca-Cola Company, the company continuously explores the opportunities opened up by the latest trends. Close and special bond with The Coca-Cola Company as a strategic partner. In this regard, we draw upon the richness of diversity that their global vision brings. The confidence The Coca-Cola Company has in us, through a unique model of collaboration and our understanding of the Coca-Cola system, leads us to a management model in which the franchisee and franchiser work as one to achieve a common goal. Capacity of commitment to society We generate wealth for society, for our employees, for the Coca-Cola system and for our country, which has proven over the years its ability to produce internationally recognized multinational companies. We are committed to the communities in which we operate, for whom we seek to create wealth directly and indirectly, and in the broadest sense, supporting a healthy lifestyle, leisure, culture and sport. We want our value chain to perceive us as an essential partner. Achieving this requires a commitment to innovation in all areas of our business. We work to constantly improve our customer service and the efficiency of the supply chain, using technological initiatives that allow us to be closer to the consumer, observing trends.

7 18 BUILDING THE FUTURE Strategic vision Coca-Cola Iberian Partners, an integrated company In 2014, the vision for Coca-Cola Iberian Partners became reality. Today we are an integrated and structured company with a welldefined organizational model which has begun to operate as such, and for which we can expect solid future growth. 2014, from integration to transformation KEY PARTS OF THE PROCESS Pedro Vinhas Corporate Director Business Transformation Office (BTO) The formation of the largest Iberian food and beverage company was completed due to an effective integration methodology. The process, begun in mid-2013, was able to initially advance and meet milestones thanks to the Integration Office (IdO for its Spanish acronym - Oficina de Integración), a cross-company unit set up to manage the project in order to reach Coca-Cola Iberian Partners' target of operating at full capacity as an integrated company. In the first twelve months the proper functioning of this office, with a great team on board, was vital, as it allowed employees to see the progress of the project and provided a participation channel for all those who wanted to contribute ideas and suggestions. The goal: to build and disseminate a new corporate culture. The Business Transformation Office (BTO) is launched By November 2014 the work of the IdO had reached its goal in record time. Thus, the Integration Office handed over supervision of completion of the ongoing processes to a newly created area: the Business Transformation Office (BTO), whose responsibilities include wrapping up integration projects under way in The BTO was created to be the engine that drives the organization towards this goal, ensuring expansion is combined with excellence. Unlike the Integration Office, it is permanent and it focuses on new opportunities, going beyond the concept of integration to target development, innovation and growth.

8 annual report Factories and logistics platforms Capillary distribution Integration BY PROCESSES Common Tax Identification Number (NIF) and Liquid Assets Business processes Finance and HR This Systems integration project has involved The challenge of unifying the Systems for all business processes This year we have faced the challenge of designing and implementing the Coca- Cola Iberian Partners Central System, which covers all business processes. The project has required the unification of all the information in the old systems into a new central system, with a strategy based on integration processes. This unification has allowed for an optimization and a clear improvement based on technology, as well as a better management of information, with greater ease and speed of access to data. The project was carried out between February 2013 and December 2014, and included all the Systems in Spain. Throughout the year, the integration strategy has addressed: Common Tax Identification Code (NIF) and Liquid Assets. Finance and Human Resources (unification of systems in these two areas). Business processes (Order to Cash- Modern Nutrition - and Order to Cash II-Distributors). Capillary distribution (Order to Cash III). Incorporating our own factories and logistics platforms (Eco and DSL). 86 sub-projects (integrated management of the entire chain) 206 consultants 105 people in the IT departments 300,000 hours put in by technical IT personnel (engineers, computer technicians and economists)

9 20 BUILDING THE FUTURE Strategic vision Reporting Factory, or how relevant information improves management Making quality information needed for decision-making accessible on a timely basis is a competitive advantage that we have given much importance in the transformation process. To do this we have created an area called Reporting Factory. This area acts as a guarantor that, on the one hand, information shared within the company obeys uniformity and quality criteria and, secondly, that each member of the organization has access to data that facilitates the performance of their duties. This new approach requires a real cultural change, necessary for competition. Providing quality information implies that, from Reporting Factory, the information needs of each area are established in order to, after a process of joint analysis, supply the Systems Area with the keys necessary to standardizing processes and automating reports, ensuring alignment with the business, meeting of deadlines, quality and accessibility. Patricia López Reporting Factory Reporting Factory aims to provide consistent, accessible and quality information throughout the organization. Shared Services Center (SSC) for efficient management Starting operations as an integrated enterprise has led to the structures of the financial services areas being transformed. In short, the back office has changed its focus and organization and although it performs the same functions and offers the same services, these are now carried out under different systems. In line with international best practices for efficient management, at Coca-Cola Iberian Partners we have faced this transformation by bringing together the management of our back office activities and those of all companies that are part of the group in a Shared Services Center (SSC). The Shared Services Center is the business unit that is in charge of centralizing certain services of a business group, in order to optimize efforts and resources. This model allows the optimization of processes, the consolidation of administrative functions and prevents the duplication of efforts. One of the main advantages of this model is the increase in quality of service and a focus on continuous improvement, which is obtained via simplification and standardization of processes and technologies. In 2014 the center managed 250,000 supplier invoices and 50,000 expense records

10 annual report Operational Excellence, enhancing the capabilities of the Industrial area In line with the collaborative conception of our production line, we have identified the development of a work methodology focused on continuous process improvement and development of the capacities of professionals in the industrial area of Coca-Cola Iberian Partners, which we call Operational Excellence. The core team responsible for the implementation and coordination of this methodology began working in the first week of 2014, analyzing, among other things, the best practices of each plant. Special recognition went to the work systems developed in the Vallès Plant in 2013, when it obtained the qualification of Operational Excellence Centre of Reference from The Coca- Cola Company, the first European plant to achieve this distinction and one of three worldwide. This is one of the results of Coca-Cola Iberian Partners' active participation in the Operational Excellence forums that The Coca-Cola Company maintains for the governance of the program. Participation in forums Coca-Cola Iberian Partners has participated in different forums of the Coca-Cola System, among which the following stand out: Global System Meeting: international annual meeting of bottlers, held in May, in Phoenix (Arizona, USA). During the three-day meeting, the strategy and plans of the Coca-Cola System were shared, focusing on the 2020 vision. For this, different themes were addressed (equipment, business strategy, innovation, etc.), that must facilitate the achievement of the future goals for the System, based on growth, talent and innovation. ECC: quarterly forum, which brings together the General Directors of the European bottlers. ECC Task Force: monthly forum for preparing the ECC (General Directors of the European bottlers). GCC: annual forum in which the General Directors and Commercial Directors of bottlers around the Coca-Cola System participate. CDFG: bimonthly forum of the European Commercial Directors. GSCC (Global Supply Chain Council), which includes GTEC, OE, Quality and Environment, Customer Driven Supply. Brings together annually the Industrial Directors and Supply Chain of the Coca-Cola System. Operational Excellence Forums: OE Pillar (within the GSCC); OE Certification Group; OE Steering Committee.