EX-99.1 3 ex99-1.txt PRESENTATION [Panamco Logo] Forward Looking Statements ----------------------------------------------------------------------------- This presentation includes forward looking statements which reflect management's current analysis and expectations, based on reasonable assumptions. Actual results may differ materially from the statements made depending on a variety of factors, including business climate, economic and competitive uncertainties, higher operating costs, reduced levels of beverage consumption in the overall market, risks in developing new products and technologies, foreign exchange rates, and adverse changes in economic and political climates around the world. This presentation does not constitute an offer to sell, an offer to purchase or a solicitation of an offer to purchase any securities. Agenda ----------------------------------------------------------------------------- o Company Overview o Organic Growth Drivers o Strategic Imperatives o Innovation & Acquisition o Financial Perspective o Strategic View Panamco Overview ----------------------------------------------------------------------------- o Largest Bottler in Latin America; Third Largest Coca-Cola Bottler o Anchor Bottler with 60-Year Coca-Cola Relationship; 25% Shareholder o Presence in Eight Countries Across Latin America o 1.2 Billion Unit Cases in 2001; 0.9 Billion September YTD o $2.6 billion Net Sales in 2001; $1.8 billion September YTD o Share of Sales: 80% in Colas; 45% in Flavors; 36% in Water o Publicly Traded on NYSE; Ticker PB Operations In 8 Latin American Countries ----------------------------------------------------------------------------- ANDEAN Region ------------- NOLAD Region Columbia ------------ Venezuela Mexico [MAP OF LATIN AMERICA] And Central America SOLAD Region Guatemala ------------- Nicaragau Brazil Costa Rica Panama Management Team -----------------------------------------------------------------------------

Agenda ----------------------------------------------------------------------------- o Company Overview -------> o Organic Growth Drivers o Strategic Imperatives o Innovation & Acquisition o Financial Perspective o Strategic View Organic Growth Drivers ----------------------------------------------------------------------------- o Price / Value Management o Channel and Mix Management o Productivity and Cost Control o Execution amd Culture Price / Value Management ----------------------------------------------------------------------------- o o o o o o o o o o o o o o o Low vs High o KR Presence o o o Per Bottle Large Format o Per Case o o o o o o o o o o o Small Format o o o o On Premise o o By Region o o Marginal o o Contribution By Channel o o o o o o o o o o Single Serve o o o o Multi Serve o Review for o Retailer o Price/Value o By Package Cans & o Opportunities Mark-up o o o Fountains o o o o o o o o o o o Gap Vs. Neighbor By Brand o o o KO Bottlers o o Avoid o o Colas o Transhipments o Gap vs. Ideal o Flavors o o Pepsi Architecture o o o o o o o o o o o o o o o 10% vs. Pepsi Discount Per o Parity vs. Flavors Oz vs. 12 Oz o o RGB o o o o o o o o o o o o o o o Price / Value Management ----------------------------------------------------------------------------- Mexico Example Before After --------------------------------------|----------------------------------------- | o Aggressive Price Increases | o Pricing At or Below Rates of Inflation | o Price Premium vs. Competitors | o 10% Premium Coca-Cola vs. Pepsi; | Parity on Flavors | o Price gaps vs. Neighboring Bottlers | o Gap Closing, Transhipments down | | | Price / Value Management ----------------------------------------------------------------------------- Mexico Example

Channel and Package Mix Management ----------------------------------------------------------------------------- o Implement Clear Merchandising Standards by Channel o Upsize Coolers and Increase Cooler Pentration o Manage Mix Within Coolers to Maximize Gross Profit o Grow Number of Displays / Points of Connection o Value Added vs. Price Discount Promotions o Develop Viable and Profitable Alternatives to 2 Liter Productivity and Cost Control ----------------------------------------------------------------------------- o Asset Structure Rational Relative to Macro-Economics o Elimination of All Non Value-Added Activities o Monthly Performance Package and Cost Reviews o Productivity and Scorecard All Levels (Month, Quarter, YTD) o Objective: Recurring Reduction in COE Per Physical Case Execution and Culture ----------------------------------------------------------------------------- Operating Principles

Summary -------------------------------------------------------------------------------- Price/Value Management -------------------------> ------------------------------ | Drive Top Line Growth | ----------------------------- Channel/Mix Management Productivity and Cost Control ----------------------------- -------------------------> | Drive Consistent | | Profit Growth | ----------------------------- Execution and Culture Summary ------------------------------------------------------------------------------- -------------- |Mexico Example| -------------- COP Margins* 50.0%| | | [Diagonal Arrow | Pointing Up 40.0%| and Right] | | | 30.0%| | 24.3% | 23.5% _____ | 22.5% _____ | | | _____ | | | | 20.0%| | | | | | | | | | | | | | | | | | | | | | | | | | | | 10.0%| | | | | | | | | | | | | | | | | | | | | | | | | | | | 0.0%|--------------------------------------------------------------| 1Q02 2Q02 3Q02 * Excluding Facilities Reorganization and Other Charges Agenda ------------------------------------------------------------------------------ o Company Overview o Organic Growth Drivers ----------> o Strategic Imperatives o Innovation & Acquisition o Financial Perspective o Strategic View Strategic Imperatives ------------------------------------------------------------------------------- o Single Serve Growth o Profitable Multi-Serve Growth o Productivity and Cost Control o Flawless Execution Managing the Business for the Long-Term In Difficult Macroeconomic Environments ----------------------------------------------------------------------------- o NOLAD: o Sustainable Pricing Architecture to Drive Top Line Growth o Maintain Share vs. New Entrants (PBG, Kola Real) o Aggressive Cost Control to Improve COP Margin o Columbia o Price Behind Inflation and Invest In Marketing to Restore Category and Panamco Volume Growth o Aggressive Cost control to Deliver Profit Growth o Venezuela o Price at Parity vs. Pepsi o Leverage Infrastructure on Returnable Packages o Aggressive Cost Control to Maximize Profitability in Tough Macroeconomic Environment o Brazil o Top Line Improvement Through an Aggressive Pricing Strategy and Rebuilding of the Sales Force o Focus on Profitability and Maintaining Share Agenda ------------------------------------------------------------------------------ o Company Overview o Organic Growth Drivers o Strategic Imperatives ---------> o Innovation & Acquisition o Financial Perspective o Strategic View Innovation and Acquisition ----------------------------------------------------------------------------- o Converting Risco Brand to Ciel: o Panamco Reached Agreements with TCCC to Convert its Risco Water Volume in Mexico to Coca-Cola Brand Ciel for a Total Consideration of $65 Mi1lion. o Growth and Profitability will Benefit from the Marketing and Distribution of a Nationally Available and Advertised Water Brand in Mexico. o Panama Acquisition: o Panamco, Through the Joint-Venture, CA Beverages, Acquired Direct Control of Coca-Cola de Panama. o Acquisition is Expected to be Accretive, is Strategic, and will Reduce Overall Risk by Adding Dollar-Denominated Profits. o Coca-Cola de Panama had Estimated Share of Sales of 60% in 2001, Volume Sales of 18.9 Million Unit Cases in 2001, and Generated Revenues and Cash Operating Profit of $62.1 Million and $9.2 Million, Respectively. Agenda ------------------------------------------------------------------------------ o Company Overview o Organic Growth Drivers o Strategic Imperatives o Innovation & Acquisition ---------> o Financial Perspective o Strategic View YTD 2002 Financial Performance ----------------------------------------------------------------------------- Financial Statistics -- Nine Months Ended September 30, 2002 (All in Millions, Unless Otherwise Stated) 2002 Act* 2001 Act* % Change --------- --------- -------- Volume Growth 1.8% Sales $1,811.4 $1,944.3 (6.8%) COP $321.2 $401.6 (20.0%) Operating Profit $181.3 $220.5 (17.8%) Net Profit $61.1 $91.7 (33.4%) EPS $0.13 $0.72 (5.4%) * Excludes Facilities Reorganization and Other Charges Long-Term Value Creation ----------------------------------------------------------------------------- An Optimal Allocation of Capital has Improved Free Cash Flow 1998 1999 2000 2001 ------ ------ ------ ------ Net Income $120 ($60) ($505) $118 Free Cash Flow Before Investments $409 $211 $220 $355 Capital Expenditures ($427) ($238) $203 ($136) Investments & Others ($120) ($188) $73 $34 Dividends Paid ($32) ($32) ($32) ($33) FCF After Investment ($169) ($246) $58 $220 FCF as % of Revenues (6.1%) (10.2%) 2.2% 8.3% Long-Term Value Creation ----------------------------------------------------------------------------- And Allowed us to Reduce Debt by Almost 30% Since Plan was Announced Q3 2000 Q3 2002 Reduction % Reduction ------- ------- --------- ----------- Total Debt $1,273 $913* $360 (28.3%) Cash & Equivalents $147 $55 $92 (62.6%) Net Debt $1,125 $858 $267 (23.7%) Note: Includes Debt from Panamanian Transaction Agenda ------------------------------------------------------------------------------ o Company Overview o Organic Growth Drivers o Strategic Imperatives o Innovation & Acquisition o Financial Perspective ---------> o Strategic View Strategic View ----------------------------------------------------------------------------- o Criteria for Acquisition: o Accretive to Shareholders. o Contiguous Territories that Drive Synergies. o On December, Panamco will Present Strategic and Operating Plan for Board of Directors Approval.

PANAMERICAN BEVERAGES INC 8-K/A