United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the period ending 31 December 2017

COCA-COLA EUROPEAN PARTNERS PLC

Pemberton House, Bakers Road
Uxbridge, UB8 1EZ, United Kingdom
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F ý Form 40-F D ¨
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))
(Check One) Yes ¨ No ý
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))
(Check One) Yes ¨ No ý




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COCA-COLA EUROPEAN PARTNERS REPORTS
PRELIMINARY UNAUDITED RESULTS FOR THE FOURTH-QUARTER AND FULL-YEAR
ENDED 31 DECEMBER 2017

SOLID FULL-YEAR 2017 REVENUE AND OPERATING PROFIT GROWTH,
STRONG FREE CASH FLOW GENERATION


LONDON, 15 February 2018 - Coca-Cola European Partners plc (CCEP) (ticker symbol: CCE) today announces preliminary unaudited results for the fourth-quarter and full-year ended 31 December 2017, and provides full-year 2018 outlook.
Highlights
Full-year diluted earnings per share were €1.41 on a reported basis or €2.12 on a comparable basis, including a negative currency translation impact of €0.04.
Full-year reported revenue totalled €11.1 billion, up 21.0 percent, or up 3.0 percent on a comparable and fx-neutral basis. Volume was up 0.5 percent on a comparable basis.
Full-year reported operating profit totalled €1.3 billion, or €1.5 billion on a comparable basis, up 9.0 percent, or up 10.5 percent on a comparable and fx-neutral basis.
Full-year free cash flow* was €1.0 billion.
Fourth-quarter diluted earnings per share were €(0.13) on a reported basis or €0.49 on a comparable basis, including a negligible impact from currency translation.
CCEP provides full-year guidance for 2018 including comparable and fx-neutral diluted earnings per share growth of between 6 percent and 7 percent when compared to 2017 comparable results.
CCEP remains on track to achieve pre-tax savings of €315 million to €340 million through synergies by mid-2019.
CCEP completes post-merger comparability adjustments related to final acquisition accounting and provides revised comparable financial information and quarterly phasing for 2016 and 2017 to reflect these adjustments. All adjustments are non-cash.
CCEP declares quarterly dividend of €0.26 per share, an increase of approximately 24 percent.

“In our first full year as Coca-Cola European Partners, we have started to realise the growth opportunities created by the merger and, importantly, modestly exceeded our initial guidance for revenue, operating profit, diluted earnings per share, and free cash flow,” said Damian Gammell, Chief Executive Officer.
“Looking ahead, our journey continues in 2018 as we further expand our portfolio, build on our commercial capabilities, and continue to invest in our business to better serve our customers and improve in-market execution,” Mr. Gammell said. “Though we face some headwinds in 2018, we remain confident that our focus on driving profitable growth and managing costs will strengthen our business for the long term.
“Today’s dividend announcement, an increase of over 20 percent, reflects our confidence in the future of our business and our goal of generating cash and driving increased shareholder value,” Mr. Gammell said.


* Refer to ‘Note Regarding the Presentation of Alternative Performance Measures’ for further details about this measure.

[1]Refer to ‘Note Regarding the Presentation of Alternative Performance Measures’ for further details about these measures.


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Key Financial Measures
Unaudited, fx impact calculated by recasting current year results at prior year rates
Fourth Quarter Ended 31 December 2017
€ million
 
% change
As Reported
 
Comparable
 
Fx-Impact
 
As Reported
 
Comparable
 
Fx-Impact
 
Comparable Fx-Neutral
Revenue
2,662

 
2,662

 
(20
)
 
3.5
 %
 
3.5
%
 
(0.5
)%
 
4.0
%
Cost of sales
1,677

 
1,618

 
(12
)
 
7.5
 %
 
3.5
%
 
(0.5
)%
 
4.0
%
Operating expenses
787

 
703

 
(6
)
 
(11.5
)%
 
0.5
%
 
(0.5
)%
 
1.0
%
Operating profit
198

 
341

 
(2
)
 
50.0
 %
 
9.5
%
 
(0.5
)%
 
10.0
%
Profit after taxes
(61
)
 
240

 
(1
)
 
(608.5
)%
 
19.5
%
 
(0.5
)%
 
20.0
%
Diluted earnings per share (€)
(0.13
)
 
0.49

 

 
(750.0
)%
 
19.5
%
 
(0.5
)%
 
20.0
%
Key Financial Measures
Unaudited, fx impact calculated by recasting current year results at prior year rates
Year Ended 31 December 2017
€ million
 
% change
As Reported
 
Comparable
 
Fx-Impact
 
As Reported
 
Comparable
 
Fx-Impact
 
Comparable Fx-Neutral
Revenue
11,062

 
11,055

 
(142
)
 
21.0
 %
 
1.5
 %
 
(1.5
)%
 
3.0
 %
Cost of sales
6,772

 
6,739

 
(85
)
 
21.5
 %
 
2.0
 %
 
(1.5
)%
 
3.5
 %
Operating expenses
3,030

 
2,838

 
(31
)
 
12.5
 %
 
(2.5
)%
 
(1.0
)%
 
(1.5
)%
Operating profit
1,260

 
1,478

 
(26
)
 
48.0
 %
 
9.0
 %
 
(1.5
)%
 
10.5
 %
Profit after taxes
688

 
1,035

 
(19
)
 
25.5
 %
 
13.0
 %
 
(2.0
)%
 
15.0
 %
Diluted earnings per share (€)
1.41

 
2.12

 
(0.04
)
 
(0.5
)%
 
13.0
 %
 
(2.0
)%
 
15.0
 %
Operational Review
Full-year 2017 diluted earnings per share were €1.41 on a reported basis, or €2.12 on a comparable basis. Currency translation had a negative impact of €0.04 on comparable diluted earnings per share for the year-ended 31 December 2017. Full-year reported operating profit totalled €1.3 billion, up 48.0 percent, driven by the inclusion of Germany, Iberia, and Iceland. Comparable operating profit was €1.5 billion, up 9.0 percent, or up 10.5 percent on a comparable and fx-neutral basis.
Fourth-quarter 2017 diluted earnings per share were €(0.13) on a reported basis, or €0.49 on a comparable basis. Currency translation had a negligible impact on fourth-quarter comparable diluted earnings per share. Fourth-quarter reported operating profit totalled €198 million, up 50.0 percent versus prior year. Comparable operating profit was €341 million, up 9.5 percent, or up 10.0 percent on a comparable and fx-neutral basis.
Key operating factors for the full year include solid revenue growth driven by revenue per case growth coupled with 0.5 percent volume growth. Operating margins improved as we maintained gross margin and as we continue to realise post-merger synergy benefits. Fourth-quarter results also reflect the quarterly phasing of final post-merger comparability adjustments. For a full reconciliation of reported to comparable results, please refer to the Supplemental Financial Information section.
Revenue
Full-year 2017 reported revenue totalled €11.1 billion, up 21.0 percent, or up 3.0 percent on a comparable and fx-neutral basis. Revenue per unit case grew 2.5 percent on a comparable and fx-neutral basis and volume increased 0.5 percent on a comparable basis.
On a territory basis for full-year 2017, Iberia revenues were up 3.0 percent, and revenue in Germany was up 2.5 percent. Revenue in Great Britain grew 4.5 percent on an fx-neutral basis, and on a reported basis, revenue declined 2.5 percent, driven by a decline of the British pound versus the euro. Revenue in France was up 0.5 percent for the year, and revenue in the Northern European territories (Belgium, Luxembourg, the Netherlands, Norway, Sweden, and Iceland) was up 4.5 percent, led by Belgium/Luxembourg and the Netherlands.
On a brand basis for full-year 2017, volume for sparkling brands was up 0.5 percent. Coca-Cola trademark brands decreased 0.5 percent, with growth of approximately 15.0 percent in Coca-Cola Zero Sugar offset by declines in other trademark brands. Sparkling flavours and energy grew 4.0 percent with continued strong growth in energy and solid growth in Fanta, Vio, and Royal Bliss. Still brands increased 1.0 percent, and water brands were down 1.5 percent.


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Fourth-quarter 2017 reported revenue totalled €2.7 billion, up 3.5 percent, or up 4.0 percent on a comparable and fx-neutral basis. Revenue per unit case was up 3.0 percent on a comparable and fx-neutral basis driven by favourable price, promotion and channel mix. Fourth-quarter volume increased 0.5 percent on a comparable basis, reflecting solid field sales execution and the benefits of marketing and brand initiatives.
On a territory basis for fourth-quarter 2017, Iberia revenues were up 3.0 percent, driven by both volume and revenue per unit case growth, supported by favourable channel and package mix. Revenue in Germany was up 6.5 percent, primarily driven by strong revenue per unit case growth reflecting pricing and promotional plans as well as favourable package and brand mix. Revenue in Great Britain grew 1.5 percent on an fx-neutral basis with solid gains in revenue per unit case partially offset by a decline in volume reflecting an ongoing focus on promotional effectiveness and efficiency. On a reported basis, Great Britain revenues were down 0.5 percent, driven by a decline of the British pound versus the euro. Revenue in France was up 6.0 percent with growth in both revenue per unit case and volume, driven by channel mix and solid growth in Coca-Cola Zero Sugar. Revenue in the Northern European territories (Belgium, Luxembourg, the Netherlands, Norway, Sweden, and Iceland) was up 2.5 percent, led by Belgium/Luxembourg and the Netherlands.
On a brand basis for fourth-quarter 2017, volume for sparkling brands was up 1.0 percent. Coca-Cola trademark brands decreased 0.5 percent, with growth of 15.0 percent in Coca-Cola Zero Sugar offset by declines in other trademark brands. Sparkling flavours and energy grew 5.0 percent led by energy brands and Fanta. Still brands increased 0.5 percent. Water brands were down 2.0 percent, impacted by the discontinuation of select less profitable water brands partially offset by solid growth from Aquabona in the quarter. Juices, isotonics, and other were up 2.5 percent with solid growth from Capri-Sun.
Cost of Sales
Full-year 2017 reported cost of sales were €6.8 billion, up 21.5 percent, driven by the inclusion of Germany, Iberia, and Iceland. Comparable cost of sales was €6.7 billion, up 2.0 percent, or up 3.5 percent on a comparable and fx-neutral basis. Full-year cost of sales per unit case increased 3.0 percent on a comparable and fx-neutral basis, driven by channel, brand and package mix, and manufacturing costs, as well as year-over-year cost increases in key inputs, principally concentrate and sweetener. This was partially offset by benefits from our synergy programmes.
Fourth-quarter 2017 reported cost of sales were €1.7 billion, up 7.5 percent. Comparable cost of sales was €1.6 billion, up 3.5 percent, or up 4.0 percent on a comparable and fx-neutral basis. Fourth-quarter cost of sales per unit case increased 3.5 percent on a comparable and fx-neutral basis, driven by channel, brand and package mix, as well as year-over-year cost increases in key inputs, principally concentrate, partially offset by benefits from our synergy programmes.
Operating Expenses
Full-year 2017 reported operating expenses were €3.0 billion, up 12.5 percent, driven by the inclusion of Germany, Iberia, and Iceland. Comparable operating expenses were €2.8 billion, down 2.5 percent, or down 1.5 percent on a comparable and fx-neutral basis. 
Fourth-quarter 2017 reported operating expenses were €787 million, down 11.5 percent. Comparable operating expenses were €703 million, up 0.5 percent, or up 1.0 percent on a comparable and fx-neutral basis. This reflects volume related costs, timing, and select investments partially offset by synergy benefits and a continued focus on managing expenses.
Restructuring Charges
During the full-year 2017, we recognised restructuring charges totalling €235 million. These charges principally relate to proposed restructuring activities under our Integration and Synergy Programme including those related to supply chain improvements such as network optimisation, productivity initiatives, continued facility rationalisation in Germany, end-to-end supply chain organisational design, and cold drink operational practices and facilities. Our proposed restructuring activities also include the transfer of Germany and Iberia transactional related activities to our shared services centre in Sofia, Bulgaria, streamlining of our HR organisation, and other central function initiatives.
US Tax Reform
The US Tax Cuts and Jobs Act (the “Act”) was enacted on 22 December 2017 and represents a significant change to the US tax code. Whilst CCEP is a UK listed and tax resident entity, it has a number of subsidiaries outside the UK, including a US incorporated holding company that is wholly owned by CCEP plc. Based on the applicable provisions of the Act, during the fourth-quarter 2017, we recorded a non-recurring book tax expense of €320 million, which included an estimated book tax expense of approximately €125 million related to the transition from a worldwide to territorial tax system and a reduction in deferred tax assets of approximately €195 million primarily due to the elimination of foreign tax credits. We do not currently


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expect an increase in cash taxes as a result of any provision of the Act and while we continue to assess the situation, at this stage, we do not anticipate any impact on our effective tax rate going forward.
Outlook
For 2018, CCEP expects revenue growth in a low single-digit range, with both operating profit and earnings per share growth of between 6 percent and 7 percent. Each of these growth figures is on a comparable and fx-neutral basis when compared to 2017 comparable results. This revenue growth guidance excludes the accounting impact of incremental soft drinks industry taxes. These taxes are expected to add approximately 2 percent to 3 percent to revenue growth and approximately 4 percent to cost of goods growth. At recent rates, currency translation would have a negligible impact on 2018 full-year diluted earnings per share.
CCEP expects 2018 free cash flow* in the range of €850 million to €900 million, including the expected benefit from improved working capital offset by the impact of restructuring and integration costs. Capital expenditures are expected to be approximately €525 million to €575 million, including approximately €75 million of capital expenditures related to synergies. Weighted-average cost of debt is expected to be approximately 2 percent. The comparable effective tax rate for 2018 is expected to be approximately 25 percent.
CCEP remains on track to achieve pre-tax run-rate savings of €315 million to €340 million through synergies by mid-2019. Further, CCEP expects to have realised approximately 75 percent of the target by year-end 2018. Restructuring cash costs to achieve these synergies are expected to be approximately 2 1/4 times expected savings and includes cash costs associated with pre-transaction close accruals. Given these factors, currency exchange rates, and our outlook for 2018, CCEP expects year-end net debt to adjusted EBITDA* for 2018 to be towards the low-end of our target range of 2.5 to 3 times. As a result, during 2018, CCEP expects to continue to evaluate returning incremental cash to shareholders.
* Refer to ‘Note Regarding the Presentation of Alternative Performance Measures’ for further details about these measures.
Dividends
The CCEP Board of Directors declared a regular quarterly dividend of €0.26 per share. The dividend is payable 15 March 2018 to those shareholders of record on 27 February 2018. The Company is pursuing arrangements to pay the dividend in euros to shares held within Euroclear Netherlands. Other publicly held shares will be converted into an equivalent US dollar amount using exchange rates issued by WM/Reuters taken at 16:00 GMT on 15 February. This translated amount will be posted on our website, www.ccep.com, under the Investor/Shareowner Information section.
Conference Call
CCEP will host a conference call with investors and analysts today at 15:00 GMT, 16:00 CET, and 10:00 a.m. EST. The call can be accessed through the Company’s website at www.ccep.com.
Financial Details
Financial details can be found in our full-year 2017 earnings release on Form 6-K, available within the next 24 hours at www.morningstar.co.uk/uk/NSM (located under effective date 31 December 2017) and available immediately on our website, www.ccep.com, under the Investors tab. This document will include comparable income statements for full-year 2017 and 2016, as well as quarterly 2017 and 2016 income statements. There is also additional supplemental financial information, such as volume and per unit case data. The financial details included in this earnings release and on Form 6-K are preliminary and unaudited.
Contacts
Investor Relations
Thor Erickson    
+1 (678) 260-3110
Media Relations
Shanna Wendt
+44 7976 595 168


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


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Forward-Looking Statements
This document may contain statements, estimates or projections that constitute “forward-looking statements” concerning the financial condition, performance, results, strategy and objectives of Coca-Cola European Partners plc and its subsidiaries (“CCEP”). Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “plan,” “seek,” “may,” “could,” “would,” “should,” “might,” “will,” “forecast,” “outlook,” “guidance,” “possible,” “potential,” “predict” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from CCEP’s historical experience and its present expectations or projections. These risks and uncertainties include, but are not limited to, obesity concerns; water scarcity and poor quality; evolving consumer preferences; increased competition and capabilities in the marketplace; product safety and quality concerns; perceived negative health consequences of certain ingredients, such as non-nutritive sweeteners and biotechnology-derived substances, and of other substances present in CCEP’s beverage products or packaging materials; increased demand for food products and decreased agricultural productivity; changes in the retail landscape or the loss of key retail or foodservice customers; fluctuations in foreign currency exchange rates; fluctuations in the stability of the Euro; interest rate increases; an inability of CCEP to maintain good relationships with its partners; a deterioration in its partners’ financial condition; increases in income tax rates, changes in income tax laws or unfavourable resolution of tax matters; increased or new indirect taxes in CCEP’s tax jurisdictions; increased cost, disruption of supply or shortage of energy or fuels; increased cost, disruption of supply or shortage of ingredients, other raw materials or packaging materials; changes in laws and regulations relating to beverage containers and packaging; significant additional labelling or warning requirements or limitations on the availability of CCEP’s products; an inability of CCEP to protect its information systems against service interruption, misappropriation of data or breaches of security; unfavourable general economic or political conditions in Europe or elsewhere; the United Kingdom’s exit from the European Union; litigation or legal proceedings; non-compliance with anti-corruption laws and regulations and economic sanctions programmes; adverse weather conditions; climate change; damage to CCEP’s brand images and corporate reputation from negative publicity, even if unwarranted, related to product safety or quality, human and workplace rights, obesity or other issues; changes in, or failure to comply with, the laws and regulations applicable to CCEP’s products or business operations; changes in accounting standards; an inability of CCEP to achieve its overall long-term growth objectives; deterioration of global credit market conditions; default by or failure of one or more of CCEP’s counterparty financial institutions; fluctuations in CCEP’s debt rating; an inability to timely implement any previously announced actions to reinvigorate growth, or to realise the economic benefits CCEP anticipates from these actions; failure to realise a significant portion of the anticipated benefits of strategic relationships, including (without limitation) The Coca-Cola Company’s relationship with Monster Beverage Corporation; an inability to renew collective bargaining agreements on satisfactory terms, or CCEP or its partners experience strikes, work stoppages or labour unrest; future impairment charges; an inability to realise business integration and synergy savings; an inability to successfully manage the possible negative consequences of productivity initiatives; global or regional catastrophic events; and other risks discussed in the reports CCEP files with the U.S. Securities and Exchange Commission. Due to these risks and uncertainties, CCEP’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set out in CCEP’s forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. CCEP does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable rules, laws and regulations. CCEP assumes no responsibility for the accuracy and completeness of any forward-looking statements. Any or all of the forward-looking statements contained in this filing and in any other of CCEP’s public statements may prove to be incorrect.


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Post-Merger Comparable Adjustments
We have completed our post-merger comparability adjustments related to the finalisation of acquisition accounting and have provided revised comparable financial information and quarterly phasing for 2017 and 2016. The final adjustments do not impact cash and will enable investors to better analyse CCEP’s business performance and allow for greater comparability. These non-cash adjustments had the effect of (i) reducing 2016 full year operating profit by €30 million (€0.04 per diluted share) to establish a comparable base depreciation expense for pro forma 2016 operating results, and (ii) reducing 2017 full year operating profit by €14 million (€0.02 per diluted share) to exclude certain one-time adjustments related to the finalisation of acquisition accounting. The tables and disclosures below provide a full reconciliation of reported to comparable results.
Note Regarding the Presentation of Alternative Performance Measures
We use certain alternative performance measures (non-GAAP performance measures) to make financial, operating and planning decisions and to evaluate and report performance. As such, where clearly identified, we have included certain alternative performance measures in this document to allow investors to better analyse our business performance and allow for greater comparability. To do so, where indicated, we have given effect to the Merger as if it had occurred at the beginning of 2016, thereby including the financial results of CCE, CCEG (Germany) and CCIP (Iberia) along with other adjustments as described below. We have also excluded items affecting the comparability of period-over-period financial performance as described in the tables below. The alternative performance measures included herein should be read in conjunction with and do not replace the directly reconcilable GAAP measure.
For purposes of this document, the following terms are defined:
‘As reported’ includes the financial results of CCE only, as the accounting predecessor, for all periods prior to 27 May 2016 and combined CCEP (CCE, Germany and Iberia) for the period from 28 May 2016 through 31 December 2017.
‘Comparable’ represents results excluding items impacting comparability during the periods presented. Additionally, for periods prior to 27 May 2016, comparable includes the results of CCE, Germany and Iberia as if the Merger had occurred at the beginning of 2016 along with acquisition accounting and the additional debt financing costs incurred by CCEP in connection with the Merger. Comparable volume is also adjusted for selling days.
‘Fx-neutral’ represents the comparable results excluding the impact of foreign exchange rate changes during the periods presented. Foreign exchange impact is calculated by recasting current year results at prior year exchange rates.
‘Free cash flow’ is defined as net cash flows from operations, less capital expenditures and interest paid, plus proceeds from capital disposals.
‘Adjusted EBITDA’ is defined as profit after tax plus taxes, net finance costs, non-operating items, depreciation, amortisation and adjusted for items impacting comparability. Management utilises adjusted EBITDA and the ratio of net debt to adjusted EBITDA to evaluate operating performance in the context of the Group’s targeted financial leverage.


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Supplementary Financial Information - Income Statement
The following provides a summary reconciliation of CCEP’s reported and comparable results for the periods presented:
Fourth-Quarter 2017
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects[1]
Mark-to-market effects[2]
Restructuring
charges[3]
Net tax
items[4]
 
CCEP
Revenue
2,662

 




 
2,662

Cost of sales
1,677

 
(8
)
3

(54
)

 
1,618

Gross profit
985

 
8

(3
)
54


 
1,044

Operating expenses
787

 
1

2

(87
)

 
703

Operating profit
198

 
7

(5
)
141


 
341

Total finance costs, net
21

 




 
21

Non-operating items
(1
)
 




 
(1
)
Profit before taxes
178

 
7

(5
)
141


 
321

Taxes
239

 
2

(2
)
36

(194
)
 
81

Profit after taxes
(61
)
 
5

(3
)
105

194

 
240

 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
(0.13
)
 
 
 
 
 
 
0.49

 
 
 
Diluted common shares outstanding
 
 
489

Fourth-Quarter 2016
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects[1]
Mark-to-market effects[2]
Restructuring
charges[3]
Merger and
integration related
costs[5]
Net tax items[4]
 
CCEP
Revenue
2,578

 





 
2,578

Cost of sales
1,559

 
6

1

(1
)


 
1,565

Gross profit
1,019

 
(6
)
(1
)
1



 
1,013

Operating expenses
887

 
10

6

(161
)
(41
)

 
701

Operating profit
132

 
(16
)
(7
)
162

41


 
312

Total finance costs, net
33

 





 
33

Non-operating items
4

 





 
4

Profit before taxes
95

 
(16
)
(7
)
162

41


 
275

Taxes
83

 
(4
)
(2
)
48

8

(59
)
 
74

Profit after taxes
12

 
(12
)
(5
)
114

33

59

 
201

 
 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.02

 
 
 
 
 
 
 
0.41

 
 
 
Diluted common shares outstanding
 
 
488

___________________________
[1] 
Adjustments to reflect Germany and Iberia financial results as if the Merger had occurred at the beginning of each period (if applicable), the impact of acquisition accounting including final fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Iberia, final acquisition accounting related adjustments and associated impact on depreciation and amortisation expense, and additional debt financing cost incurred by CCEP in connection with the Merger.
[2] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[3] 
Amounts represent restructuring charges related to business transformation activities.
[4] 
Amounts represent the deferred tax impact related to income tax rate and law changes. The amount in fourth-quarter 2017 principally represents the net book tax impact of US tax reform.
[5] 
Amounts represent costs associated with the Merger to form CCEP.


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Full-year 2017
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
 
Comparable
CCEP
 
Merger effects[1]
Mark-to-market effects[2]
Restructuring
charges[3]
Merger and
integration
related costs[4]
Litigation provision[5]
Net tax items[6]
 
CCEP
Revenue
11,062

 
(7
)





 
11,055

Cost of sales
6,772

 
27

6

(66
)



 
6,739

Gross profit
4,290

 
(34
)
(6
)
66




 
4,316

Operating expenses
3,030

 
(14
)

(169
)
(4
)
(5
)

 
2,838

Operating profit
1,260

 
(20
)
(6
)
235

4

5


 
1,478

Total finance costs, net
100

 




(1
)

 
99

Non-operating items
1

 






 
1

Profit before taxes
1,159

 
(20
)
(6
)
235

4

6


 
1,378

Taxes
471

 
(4
)
(2
)
70

1

1

(194
)
 
343

Profit after taxes
688

 
(16
)
(4
)
165

3

5

194

 
1,035

 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
1.41

 
 
 
 
 
 
 
 
2.12

 
 
 
 
Diluted common shares outstanding
 
 
 
489

Full-year 2016
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects[1]
Mark-to-market effects[2]
Restructuring
charges[3]
Merger and
integration
related costs[4]
Net tax items[6]
 
CCEP
Revenue
9,133

 
1,732





 
10,865

Cost of sales
5,584

 
1,006

18

(13
)


 
6,595

Gross profit
3,549

 
726

(18
)
13



 
4,270

Operating expenses
2,698

 
911

17

(547
)
(168
)

 
2,911

Operating profit
851

 
(185
)
(35
)
560

168


 
1,359

Total finance costs, net
123

 
12



(5
)

 
130

Non-operating items
9

 
(1
)




 
8

Profit before taxes
719

 
(196
)
(35
)
560

173


 
1,221

Taxes
170

 
(29
)
(9
)
156

39

(23
)
 
304

Profit after taxes
549

 
(167
)
(26
)
404

134

23

 
917

 
 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
1.42

 
 
 
 
 
 
 
1.88

 
 
 
 
Reported diluted common shares outstanding
 
 
385

Adjust: Capital structure share impact related to the Merger
 
 
103

Comparable diluted common shares outstanding
 
 
488

___________________________
[1] 
Adjustments to reflect Germany and Iberia financial results as if the Merger had occurred at the beginning of each period (if applicable), the impact of acquisition accounting including final fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Iberia, final acquisition accounting related adjustments and associated impact on depreciation and amortisation expense, and additional debt financing cost incurred by CCEP in connection with the Merger.
[2] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[3] 
Amounts represent restructuring charges related to business transformation activities.
[4] 
Amounts represent costs associated with the Merger to form CCEP.
[5] 
Amount represents a provision recorded for ongoing litigation.
[6] 
Amounts represent the deferred tax impact related to income tax rate and law changes. The amount in fourth-quarter 2017 principally represents the net book tax impact of US tax reform.


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P a g e | 10
 
 

Supplemental Financial Information - Revenue
Revenue
In millions of €, except per case data which is calculated prior to rounding
Fourth Quarter Ended
 
Year Ended
31 December 2017
31 December 2016
% Change
 
31 December 2017
31 December 2016
% Change
As reported
2,662

2,578

3.5
 %
 
11,062

9,133

21.0
 %
Adjust: Total items impacting comparability[1]
n/a

n/a

n/a

 
(7
)
1,732

(100.5
)%
Comparable
2,662

2,578

3.5
 %
 
11,055

10,865

1.5
 %
Adjust: Impact of fx changes
20

n/a

(0.5
)%
 
142

n/a

(1.5
)%
Comparable & fx-neutral
2,682

2,578

4.0
 %
 
11,197

10,865

3.0
 %
 
 
 
 
 
 
 
 
Revenue per unit case
4.41

4.28

3.0
 %
 
4.46

4.35

2.5
 %
___________________________
[1] 
Amounts include items impacting comparability during the periods presented. Additionally, for periods prior to 27 May 2016, amounts include the results of Germany and Iberia as if the Merger had occurred at the beginning of the presented period.
Revenue by Geography
Comparable
Fourth Quarter Ended
 
Year Ended
31 December 2017
31 December 2016
Revenue % Change
 
31 December 2017
31 December 2016
Revenue % Change
% of Total
% of Total
 
% of Total
% of Total
Spain/Portugal/Andorra[1]
23.0
%
23.0
%
3.0
 %
 
24.5
%
24.0
%
3.0
 %
Germany
21.0
%
20.5
%
6.5
 %
 
20.0
%
20.0
%
2.5
 %
Great Britain
19.0
%
20.0
%
(0.5
)%
 
18.5
%
19.0
%
(2.5
)%
France/Monaco
16.0
%
15.5
%
6.0
 %
 
16.5
%
16.5
%
0.5
 %
Belgium/Luxembourg/Netherlands
13.0
%
13.0
%
3.5
 %
 
13.0
%
13.0
%
2.0
 %
Norway
4.0
%
4.0
%
2.0
 %
 
3.5
%
4.0
%
1.5
 %
Sweden
3.0
%
3.0
%
1.5
 %
 
3.0
%
3.0
%
1.0
 %
Iceland[2]
1.0
%
1.0
%
(4.0
)%
 
1.0
%
0.5
%
150.5
 %
Total
100.0
%
100.0
%
3.5
 %
 
100.0
%
100.0
%
1.5
 %
___________________________
[1] 
Spain/Portugal/Andorra is also referred to as Iberia.
[2] 
Iceland was acquired in July 2016.

Comparable Volume - Selling Day Shift
In millions of unit cases, prior period volume recast using current year selling days[1]
Fourth Quarter Ended
 
Year Ended
31 December 2017
31 December 2016
% Change
 
31 December 2017
31 December 2016
% Change
Volume
608

603

0.5
%
 
2,510

2,502

0.5
%
Impact of selling day shift
n/a

n/a

n/a

 
n/a

(7
)
n/a

Comparable volume
608

603

0.5
%
 
2,510

2,495

0.5
%
___________________________
[1] 
A unit case equals approximately 5.678 litres or 24 8-ounce servings, a typical volume measure used in our industry.
Comparable Volume by Brand Category
Adjusted for selling day shift
Fourth Quarter Ended
 
Year Ended
31 December 2017
31 December 2016
Volume % Change
 
31 December 2017
31 December 2016
Volume % Change
% of Total
% of Total
 
% of Total
% of Total
Sparkling
87.0
%
87.0
%
1.0
 %
 
85.0
%
85.5
%
0.5
 %
Coca-Cola Trademark
65.5
%
66.5
%
(0.5
)%
 
63.5
%
64.5
%
(0.5
)%
Sparkling Flavours and Energy
21.5
%
20.5
%
5.0
 %
 
21.5
%
21.0
%
4.0
 %
Stills
13.0
%
13.0
%
0.5
 %
 
15.0
%
14.5
%
1.0
 %
Juice, Isotonics and Other
7.0
%
7.0
%
2.5
 %
 
8.0
%
7.5
%
2.5
 %
Water
6.0
%
6.0
%
(2.0
)%
 
7.0
%
7.0
%
(1.5
)%
Total
100.0
%
100.0
%
0.5
 %
 
100.0
%
100.0
%
0.5
 %


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P a g e | 11
 
 

Supplemental Financial Information - Cost of Sales and Operating Expenses
Cost of Sales
In millions of €, except per case data which is calculated prior to rounding
Fourth Quarter Ended
 
Year Ended
31 December 2017
31 December 2016
% Change
 
31 December 2017
31 December 2016
% Change
As reported
1,677

1,559

7.5
 %
 
6,772

5,584

21.5
 %
Adjust: Total items impacting comparability[1]
(59
)
6

(1,083.5
)%
 
(33
)
1,011

(103.5
)%
Comparable
1,618

1,565

3.5
 %
 
6,739

6,595

2.0
 %
Adjust: Impact of fx changes
12

n/a

(0.5
)%
 
85

n/a

(1.5
)%
Comparable & fx-neutral
1,630

1,565

4.0
 %
 
6,824

6,595

3.5
 %
 
 
 
 
 
 
 
 
Cost of sales per unit case
2.68

2.60

3.5
 %
 
2.72

2.64

3.0
 %
__________________________
[1] 
Amounts include items impacting comparability during the periods presented. Additionally, for periods prior to 27 May 2016, amounts include the results of Germany and Iberia as if the Merger had occurred at the beginning of the presented period.
Operating Expenses
In millions of €
Fourth Quarter Ended
 
Year Ended
31 December 2017
31 December 2016
% Change
 
31 December 2017
31 December 2016
% Change
As reported
787

887

(11.5
)%
 
3,030

2,698

12.5
 %
Adjust: Total items impacting comparability[1]
(84
)
(186
)
(55.0
)%
 
(192
)
213

(190.0
)%
Comparable
703

701

0.5
 %
 
2,838

2,911

(2.5
)%
Adjust: Impact of fx changes
6

n/a

(0.5
)%
 
31

n/a

(1.0
)%
Comparable & fx-neutral
709

701

1.0
 %
 
2,869

2,911

(1.5
)%
___________________________
[1] 
Amounts include items impacting comparability during the periods presented. Additionally, for periods prior to 27 May 2016, amounts include the results of Germany and Iberia as if the Merger had occurred at the beginning of the presented period.



       image0a16.jpg                                                                                                                                                                                                           
P a g e | 12
 
 

Supplemental Financial Information - Free Cash Flow
Free Cash Flow[1]
In millions of €
 
Year Ended
 
31 December 2017
Net cash flows from operating activities
 
1,623

Less: Purchases of property, plant and equipment
 
(484
)
Less: Purchases of capitalised software
 
(36
)
Less: Interest paid
 
(94
)
Add: Disposals of property, plant and equipment
 
32

Free cash flow
 
1,041

___________________________
[1] 
Free cash flow is defined as net cash flows from operations, less capital expenditures and interest paid, plus proceeds from capital disposals.
Supplemental Financial Information - Borrowings
Net Debt
In millions of €
As at
 
Credit Ratings
As of 14 February 2018
 
 
 
 
31 December 2017
 
 
Moody’s
 
Standard & Poor’s
Total borrowings
5,748

 
Long-term rating
 
A3
 
BBB+
Add: fx impact of non-EUR borrowings
66

 
Outlook
 
Stable
 
Stable
Adjusted total borrowings
5,814

 
Note: Our credit ratings can be materially influenced by a number of factors including, but not limited to, acquisitions, investment decisions and working capital management activities of TCCC and/or changes in the credit rating of TCCC.
Less: cash and cash equivalents
(360
)
 
Net debt
5,454

 
Supplemental Financial Information - Net Debt to Adjusted EBITDA
Adjusted EBITDA
In millions of €
 
Year Ended
 
31 December 2017
Reported profit after tax
 
688

Taxes
 
471

Finance costs, net
 
100

Non-operating items
 
1

Reported operating profit
 
1,260

Depreciation and amortisation
 
490

Reported EBITDA
 
1,750

 
 
 
Items impacting comparability
 
 
Merger effects[1]
 
(20
)
Mark-to-market effects[2]
 
(6
)
Restructuring Charges[3]
 
218

Merger and Integration Related Costs[4]
 
4

Litigation provision[5]
 
5

Adjusted EBITDA
 
1,951

 
 
 
Net Debt to EBITDA
 
3.1

 
 
 
Net Debt to Adjusted EBITDA
 
2.8

___________________________
[1] 
Adjustments to reflect Germany and Iberia financial results as if the Merger had occurred at the beginning of each period (if applicable), the impact of acquisition accounting including final fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Iberia, final acquisition accounting related adjustments and associated impact on depreciation and amortisation expense, and additional debt financing cost incurred by CCEP in connection with the Merger.
[2] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[3] 
Amounts represent restructuring charges related to business transformation activities, excluding depreciation that is included in depreciation and amortisation above.
[4] 
Amounts represent costs associated with the Merger to form CCEP.
[5] 
Amount represents a provision recorded for ongoing litigation.


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P a g e | 13
 
 

Supplemental Financial Information - Financial Position
Statement of Financial Position

In millions of €
 
As at
 
31 December 2017
 
31 December 2016
Non-current assets
 
14,880

 
15,143

Current assets
 
3,314

 
3,425

Total assets
 
18,194

 
18,568

Non-current liabilities
 
8,222

 
8,355

Current liabilities
 
3,287

 
3,752

Total liabilities
 
11,509

 
12,107

Total equity
 
6,685

 
6,461

Total equity and liabilities
 
18,194

 
18,568

Total non-current assets decreased €263 million, or 1.7 percent, from €15.1 billion at 31 December 2016 to €14.9 billion at 31 December 2017. This change was partially driven by a decrease in deferred tax assets of €218 million mainly related to US tax law changes enacted prior to year end. Property, plant and equipment reduced by €156 million which was offset by increases in intangible assets and goodwill of €40 million and €93 million, respectively, relating primarily to the finalisation of acquisition accounting for Germany and Iberia and currency effects during the period.
Total current assets decreased €111 million, or 3.2 percent, from €3.4 billion at 31 December 2016 to €3.3 billion at 31 December 2017. This change was primarily driven by a decrease of €23 million in inventories and €128 million in trade accounts receivable resulting from working capital initiatives.
Total non-current liabilities decreased by €133 million, or 1.6 percent, from €8.4 billion at 31 December 2016 to €8.2 billion at 31 December 2017. This change was mainly driven by a reduction of €116 million in our employee benefit liabilities due to improved return on underlying assets, a reduction in non-current borrowings of €88 million reflecting early repayments on a term loan of €300 million, foreign exchange movements on our US denominated debt and issuance of €350 million floating-rate notes, offset by an increase in our derivative liabilities of €92 million.
Total current liabilities decreased €465 million, or 12.4 percent, from €3.8 billion at 31 December 2016 to €3.3 billion at 31 December 2017. This change was primarily driven by the repayment of €300 million Eurobond notes in November 2017 and €500 million floating rate notes in December 2017, offset by commercial paper issuances of €250 million. This reduction was offset by an increase in trade and other payables of €115 million, primarily due to working capital initiatives.





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P a g e | 14
 
 

Supplementary Financial Information - First, Second, and Third Quarter of 2017 and 2016
The following provides a revised summary reconciliation of CCEP’s reported and comparable results for the first quarter ended 31 March 2017 and 1 April 2016:
First-Quarter 2017
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects[1]
Mark-to-market effects[2]
Restructuring
charges[3]
Merger and
integration
related
costs[4]
 
CCEP
Revenue
2,382

 




 
2,382

Cost of sales
1,468

 
23

11

(3
)

 
1,499

Gross profit
914

 
(23
)
(11
)
3


 
883

Operating expenses
695

 
(4
)
(2
)
(17
)
(1
)
 
671

Operating profit
219

 
(19
)
(9
)
20

1

 
212

Total finance costs, net
24

 




 
24

Non-operating items

 




 

Profit before taxes
195

 
(19
)
(9
)
20

1

 
188

Taxes
48

 
(5
)
(2
)
7


 
48

Profit after taxes
147

 
(14
)
(7
)
13

1

 
140

 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.30

 
 
 
 
 
 
0.29

 
 
Comparable diluted common shares outstanding
488

First-Quarter 2016
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger
effects(1)
Mark-to-
market
effects(2)
Restructuring
charges(3)
Merger
related
costs(4)
 
CCEP
Revenue
1,375

 
1,014




 
2,389

Cost of sales
867

 
601

3

(3
)

 
1,468

Gross profit
508

 
413

(3
)
3


 
921

Operating expenses
403

 
551

1

(220
)
(13
)
 
722

Operating profit
105

 
(138
)
(4
)
223

13

 
199

Total finance costs, net
22

 
8




 
30

Non-operating items
2

 




 
2

Profit before taxes
81

 
(146
)
(4
)
223

13

 
167

Taxes
22

 
(41
)
(1
)
56

3

 
39

Profit after taxes
59

 
(105
)
(3
)
167

10

 
128

 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.25

 
 
 
 
 
 
0.26

 
 
 
Reported diluted common shares outstanding
232

Adjust: Capital structure share impact related to the Merger
255

Comparable diluted common shares outstanding
487

_________________________
[1] 
Adjustments to reflect Germany and Iberia financial results as if the Merger had occurred at the beginning of each period (if applicable), the impact of acquisition accounting including final fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Iberia, final acquisition accounting related adjustments and associated impact on depreciation and amortisation expense, and additional debt financing cost incurred by CCEP in connection with the Merger.
[2] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[3] 
Amounts represent restructuring charges related to business transformation activities.
[4] 
Amounts represent costs associated with the Merger to form CCEP.


       image0a16.jpg                                                                                                                                                                                                           
P a g e | 15
 
 

Key Financial Measures
Unaudited, fx impact calculated by recasting current year results at prior year rates
First Quarter Ended 31 March 2017
€ million
 
% change
As Reported
 
Comparable
 
Fx-Impact
 
As Reported
 
Comparable
 
Fx-Impact
 
Comparable Fx-Neutral
Revenue
2,382

 
2,382

 
(42
)
 
73.0
%
 
(0.5
)%
 
(2.0
)%
 
1.5
 %
Cost of sales
1,468

 
1,499

 
(25
)
 
69.5
%
 
2.0
 %
 
(2.0
)%
 
4.0
 %
Operating expenses
695

 
671

 
(9
)
 
72.5
%
 
(7.0
)%
 
(1.0
)%
 
(6.0
)%
Operating profit
219

 
212

 
(8
)
 
108.5
%
 
6.5
 %
 
(4.0
)%
 
10.5
 %
Profit after taxes
147

 
140

 
(6
)
 
149.0
%
 
9.5
 %
 
(4.5
)%
 
14.0
 %
Diluted earnings per share (€)
0.30

 
0.29

 
(0.01
)
 
20.0
%
 
11.5
 %
 
(4.0
)%
 
15.5
 %
Revenue
In millions of €, except per case data which is calculated prior to rounding
First Quarter Ended
31 March 2017
1 April
 2016
% Change
As reported
2,382

1,375

73.0
 %
Adjust: Total items impacting comparability[1]
n/a

1,014

(100.0
)%
Comparable
2,382

2,389

(0.5
)%
Adjust: Impact of fx changes
42

n/a

(2.0
)%
Comparable & fx-neutral
2,424

2,389

1.5
 %
 
 
 
 
Revenue per unit case
4.44

4.34

2.5
 %
Cost of Sales
In millions of €, except per case data which is calculated prior to rounding
First Quarter Ended
31 March 2017
1 April
2016
% Change
As reported
1,468

867

69.5
 %
Adjust: Total items impacting comparability[1]
31

601

(95.0
)%
Comparable
1,499

1,468

2.0
 %
Adjust: Impact of fx changes
25

n/a

(2.0
)%
Comparable & fx-neutral
1,524

1,468

4.0
 %
 
 
 
 
Cost of sales per unit case
2.79

2.67

4.5
 %
___________________________
[1] 
Amounts include items impacting comparability during the periods presented. Additionally, for periods prior to 27 May 2016, amounts include the results of Germany and Iberia as if the Merger had occurred at the beginning of the presented period.




       image0a16.jpg                                                                                                                                                                                                           
P a g e | 16
 
 

The following provides a revised summary reconciliation of CCEP’s reported and comparable results for the second quarter ended 30 June 2017 and 1 July 2016:
Second-Quarter 2017
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects(1)
Mark-to-
market effects(2)
Restructuring
charges(3)
Merger
related
costs(4)
 
CCEP
Revenue
3,054

 
(7
)



 
3,047

Cost of sales
1,853

 
10

(9
)
(2
)

 
1,852

Gross profit
1,201

 
(17
)
9

2


 
1,195

Operating expenses
785

 
(10
)
(3
)
(31
)
(2
)
 
739

Operating profit
416

 
(7
)
12

33

2

 
456

Total finance costs, net
27

 




 
27

Non-operating items

 




 

Profit before taxes
389

 
(7
)
12

33

2

 
429

Taxes
91

 
(1
)
2

13

1

 
106

Profit after taxes
298

 
(6
)
10

20

1

 
323

 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.61

 
 
 
 
 
 
0.66

 
 
Comparable diluted common shares outstanding
489

Second-Quarter 2016
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects(1)
Mark-to-
market effects(2)
Restructuring
charges(3)
Merger
related
costs(4)
Net tax items[5]
 
CCEP
Revenue
2,170

 
718





 
2,888

Cost of sales
1,362

 
391

11

(4
)


 
1,760

Gross profit
808

 
327

(11
)
4



 
1,128

Operating expenses
599

 
349

9

(118
)
(106
)

 
733

Operating profit
209

 
(22
)
(20
)
122

106


 
395

Total finance costs, net
39

 
4



(5
)

 
38

Non-operating items
2

 
(1
)




 
1

Profit before taxes
168

 
(25
)
(20
)
122

111


 
356

Taxes
17

 
19

(5
)
32

25

(3
)
 
85

Profit after taxes
151

 
(44
)
(15
)
90

86

3

 
271

 
 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.45

 
 
 
 
 
 
 
0.56

 
 
 
 
Reported diluted common shares outstanding
332

Adjust: Capital structure share impact related to the Merger
156

Comparable diluted common shares outstanding
488

_________________________
[1] 
Adjustments to reflect Germany and Iberia financial results as if the Merger had occurred at the beginning of each period (if applicable), the impact of acquisition accounting including final fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Iberia, final acquisition accounting related adjustments and associated impact on depreciation and amortisation expense, and additional debt financing cost incurred by CCEP in connection with the Merger.
[2] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[3] 
Amounts represent restructuring charges related to business transformation activities.
[4] 
Amounts represent costs associated with the Merger to form CCEP.
[5] 
Amounts represent the deferred tax impact related to income tax rate and law changes.



       image0a16.jpg                                                                                                                                                                                                           
P a g e | 17
 
 

Key Financial Measures
Unaudited, fx impact calculated by recasting current year results at prior year rates
Second Quarter Ended 30 June 2017
€ million
 
% change
As Reported
 
Comparable
 
Fx-Impact
 
As Reported
 
Comparable
 
Fx-Impact
 
Comparable Fx-Neutral
Revenue
3,054

 
3,047

 
(52
)
 
40.5
%
 
5.5
%
 
(2.0
)%
 
7.5
%
Cost of sales
1,853

 
1,852

 
(31
)
 
36.0
%
 
5.0
%
 
(2.0
)%
 
7.0
%
Operating expenses
785

 
739

 
(10
)
 
31.0
%
 
1.0
%
 
(1.0
)%
 
2.0
%
Operating profit
416

 
456

 
(11
)
 
99.0
%
 
15.5
%
 
(2.5
)%
 
18.0
%
Profit after taxes
298

 
323

 
(8
)
 
97.5
%
 
19.0
%
 
(3.0
)%
 
22.0
%
Diluted earnings per share (€)
0.61

 
0.66

 
(0.02
)
 
35.5
%
 
18.0
%
 
(3.0
)%
 
21.0
%
Revenue
In millions of €, except per case data which is calculated prior to rounding
Second Quarter Ended
30 June
2017
1 July
2016
% Change
As reported
3,054

2,170

40.5
 %
Adjust: Total items impacting comparability[1]
(7
)
718

(101.0
)%
Comparable
3,047

2,888

5.5
 %
Adjust: Impact of fx changes
52

n/a

(2.0
)%
Comparable & fx-neutral
3,099

2,888

7.5
 %
 
 
 
 
Revenue per unit case
4.51

4.39

2.5
 %
Cost of Sales
In millions of €, except per case data which is calculated prior to rounding
Second Quarter Ended
30 June
2017
1 July
2016
% Change
As reported
1,853

1,362

36.0
 %
Adjust: Total items impacting comparability[1]
(1
)
398

(100.5
)%
Comparable
1,852

1,760

5.0
 %
Adjust: Impact of fx changes
31

n/a

(2.0
)%
Comparable & fx-neutral
1,883

1,760

7.0
 %
 
 
 
 
Cost of sales per unit case
2.74

2.67

2.5
 %
___________________________
[1] 
Amounts include items impacting comparability during the periods presented. Additionally, for periods prior to 27 May 2016, amounts include the results of Germany and Iberia as if the Merger had occurred at the beginning of the presented period.




       image0a16.jpg                                                                                                                                                                                                           
P a g e | 18
 
 

The following provides a revised summary reconciliation of CCEP’s reported and comparable results for the third quarter ended 29 September 2017 and 30 September 2016:
Third-Quarter 2017
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects(1)
Mark-to-
market
effects(2)
Restructuring
charges(3)
Merger
related
costs(4)
Litigation
provision[5]
 
CCEP
Revenue
2,964

 





 
2,964

Cost of sales
1,774

 
2

1

(7
)


 
1,770

Gross profit
1,190

 
(2
)
(1
)
7



 
1,194

Operating expenses
763

 
(1
)
3

(34
)
(1
)
(5
)
 
725

Operating profit
427

 
(1
)
(4
)
41

1

5

 
469

Total finance costs, net
28

 




(1
)
 
27

Non-operating items
2

 





 
2

Profit before taxes
397

 
(1
)
(4
)
41

1

6

 
440

Taxes
93

 


14


1

 
108

Profit after taxes
304

 
(1
)
(4
)
27

1

5

 
332

 
 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.62

 
 
 
 
 
 
 
0.68

 
 
Comparable diluted common shares outstanding
489

Third-Quarter 2016
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects(1)
Mark-to-
market
effects(2)
Restructuring
charges(3)
Merger
related
costs(4)
Net tax items[6]
 
CCEP
Revenue
3,010

 





 
3,010

Cost of sales
1,796

 
8

3

(5
)


 
1,802

Gross profit
1,214

 
(8
)
(3
)
5



 
1,208

Operating expenses
809

 
1

1

(48
)
(8
)

 
755

Operating profit
405

 
(9
)
(4
)
53

8


 
453

Total finance costs, net
29

 





 
29

Non-operating items
1

 





 
1

Profit before taxes
375

 
(9
)
(4
)
53

8


 
423

Taxes
48

 
(3
)
(1
)
20

3

39

 
106

Profit after taxes
327

 
(6
)
(3
)
33

5

(39
)
 
317

 
 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.67

 
 
 
 
 
 
 
0.65

 
 
 
 
Comparable diluted common shares outstanding
488

___________________________
[1] 
Adjustments to reflect Germany and Iberia financial results as if the Merger had occurred at the beginning of each period (if applicable), the impact of acquisition accounting including final fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Iberia, final acquisition accounting related adjustments and associated impact on depreciation and amortisation expense, and additional debt financing cost incurred by CCEP in connection with the Merger.
[2] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[3] 
Amounts represent restructuring charges related to business transformation activities.
[4] 
Amounts represent costs associated with the Merger to form CCEP.
[5] 
Amount represents a provision recorded for ongoing litigation.
[6] 
Amounts represent the deferred tax impact related to income tax rate and law changes.



       image0a16.jpg                                                                                                                                                                                                           
P a g e | 19
 
 

Key Financial Measures
Unaudited, fx impact calculated by recasting current year results at prior year rates
Third Quarter Ended 29 September 2017
€ million
 
% change
As Reported
 
Comparable
 
Fx-Impact
 
As Reported
 
Comparable
 
Fx-Impact
 
Comparable Fx-Neutral
Revenue
2,964

 
2,964

 
(29
)
 
(1.5
)%
 
(1.5
)%
 
(1.0
)%
 
(0.5
)%
Cost of sales
1,774

 
1,770

 
(17
)
 
(1.0
)%
 
(2.0
)%
 
(1.0
)%
 
(1.0
)%
Operating expenses
763

 
725

 
(7
)
 
(5.5
)%
 
(4.0
)%
 
(1.0
)%
 
(3.0
)%
Operating profit
427

 
469

 
(5
)
 
5.5
 %
 
3.5
 %
 
(1.0
)%
 
4.5
 %
Profit after taxes
304

 
332

 
(4
)
 
(7.0
)%
 
4.5
 %
 
(1.5
)%
 
6.0
 %
Diluted earnings per share (€)
0.62

 
0.68

 
(0.01
)
 
(7.5
)%
 
4.5
 %
 
(1.0
)%
 
5.5
 %
Revenue
In millions of €, except per case data which is calculated prior to rounding
Third Quarter Ended
29 September 2017
30 September 2016
% Change
As reported
2,964

3,010

(1.5
)%
Adjust: Total items impacting comparability[1]
n/a

n/a

n/a

Comparable
2,964

3,010

(1.5
)%
Adjust: Impact of fx changes
29

n/a

(1.0
)%
Comparable & fx-neutral
2,993

3,010

(0.5
)%
 
 
 
 
Revenue per unit case
4.47

4.36

2.5
 %
Cost of Sales
In millions of €, except per case data which is calculated prior to rounding
Third Quarter Ended
29 September 2017
30 September 2016
% Change
As reported
1,774

1,796

(1.0
)%
Adjust: Total items impacting comparability[1]
(4
)
6

(166.5
)%
Comparable
1,770

1,802

(2.0
)%
Adjust: Impact of fx changes
17

n/a

(1.0
)%
Comparable & fx-neutral
1,787

1,802

(1.0
)%
 
 
 
 
Cost of sales per unit case
2.67

2.61

2.5
 %
___________________________
[1] 
Amounts include items impacting comparability during the periods presented. Additionally, for periods prior to 27 May 2016, amounts include the results of Germany and Iberia as if the Merger had occurred at the beginning of the presented period.







       image0a16.jpg                                                                                                                                                                                                           
P a g e | 20
 
 


Coca-Cola European Partners plc
Consolidated Income Statement (Unaudited)
 
 
Year Ended
 
 
31 December 2017
 
31 December 2016
 
31 December 2015
 
 
€ million
 
€ million
 
€ million
Revenue
 
11,062

 
9,133

 
6,329

Cost of sales
 
(6,772
)
 
(5,584
)
 
(4,017
)
Gross profit
 
4,290

 
3,549

 
2,312

Selling and distribution expenses
 
(2,124
)
 
(1,615
)
 
(919
)
Administrative expenses
 
(906
)
 
(1,083
)
 
(634
)
Operating profit
 
1,260

 
851

 
759

Finance income
 
48

 
31

 
24

Finance costs
 
(148
)
 
(154
)
 
(134
)
Total finance costs, net
 
(100
)
 
(123
)
 
(110
)
Non-operating items
 
(1
)
 
(9
)
 
(5
)
Profit before taxes
 
1,159

 
719

 
644

Taxes
 
(471
)
 
(170
)
 
(131
)
Profit after taxes
 
688

 
549

 
513

 
 
 
 
 
 
 
Basic earnings per share (€)
 
1.42

 
1.45

 
2.23

Diluted earnings per share (€)
 
1.41

 
1.42

 
2.19






       image0a16.jpg                                                                                                                                                                                                           
P a g e | 21
 
 

Coca-Cola European Partners plc
Consolidated Statement of Financial Position (Unaudited)
 
 
31 December 2017
 
31 December 2016
 
 
€ million
 
€ million
ASSETS
 
 
 
 
Non-current:
 
 
 
 
Intangible assets
 
8,384

 
8,344

Goodwill
 
2,520

 
2,427

Property, plant and equipment
 
3,837

 
3,993

Non-current derivative assets
 
2

 
35

Deferred tax assets
 
56

 
274

Other non-current assets
 
81

 
70

Total non-current assets
 
14,880

 
15,143

Current:
 
 
 
 
Current derivative assets
 
20

 
23

Current tax assets
 
25

 
16

Inventories
 
650

 
673

Amounts receivable from related parties
 
75

 
95

Trade accounts receivable
 
1,732

 
1,860

Other current assets
 
452

 
372

Cash and cash equivalents
 
360

 
386

Total current assets
 
3,314

 
3,425

Total assets
 
18,194

 
18,568

LIABILITIES
 
 
 
 
Non-current:
 
 
 
 
Borrowings, less current portion
 
5,474

 
5,562

Employee benefit liabilities
 
162

 
278

Non-current provisions
 
48

 
89

Non-current derivative liabilities
 
93

 
1

Deferred tax liabilities
 
2,237

 
2,248

Other non-current liabilities
 
208

 
177

Total non-current liabilities
 
8,222

 
8,355

Current:
 
 
 
 
Current portion of borrowings
 
274

 
875

Current portion of employee benefit liabilities
 
21

 
24

Current provisions
 
194

 
221

Current derivative liabilities
 
1

 
8

Current tax liabilities
 
86

 
44

Amounts payable to related parties
 
178

 
162

Trade and other payables
 
2,533

 
2,418

Total current liabilities
 
3,287

 
3,752

Total liabilities
 
11,509

 
12,107

EQUITY
 
 
 
 
Share capital
 
5

 
5

Share premium
 
127

 
114

Merger reserves
 
287

 
287

Other reserves
 
(503
)
 
(419
)
Retained earnings
 
6,769

 
6,474

Total equity
 
6,685

 
6,461

Total equity and liabilities
 
18,194

 
18,568








       image0a16.jpg                                                                                                                                                                                                           
P a g e | 22
 
 

Coca-Cola European Partners plc 
Consolidated Statement of Cash Flows (Unaudited)
 
 
Year Ended
 
 
31 December 2017
 
31 December 2016
 
 
€ million
 
€ million
Cash flows from operating activities:
 
 
 
 
Profit before taxes
 
1,159

 
719

Adjustments to reconcile profit before tax to net cash flows from operating activities:
 
 
 
 
Depreciation
 
443

 
333

Amortisation of intangible assets
 
47

 
39

Share-based payment expense
 
14

 
42

Finance costs, net
 
100

 
123

Income taxes paid
 
(247
)
 
(187
)
Changes in assets and liabilities:
 

 
 
Decrease/(increase) in trade accounts receivable
 
108

 
87

Decrease/(increase) in inventories
 
16

 
61

Increase/(decrease) in trade and other payables
 
142

 
155

Increase/(decrease) in provisions
 
(67
)
 
37

Change in other operating assets and liabilities
 
(92
)
 
(165
)
Net cash flows from operating activities
 
1,623

 
1,244

Cash flows from investing activities:
 
 
 
 
Purchases of property, plant and equipment
 
(484
)
 
(459
)
Purchases of intangible assets
 
(36
)
 
(38
)
Proceeds from sales of property, plant and equipment
 
32

 
12

Settlement of net investment hedges
 

 
(8
)
Cash from acquisition of bottling operations
 

 
110

Net cash flows used in investing activities
 
(488
)
 
(383
)
Cash flows from financing activities:
 
 
 
 
Proceeds from borrowings, net of issuance costs
 
350

 
3,174

Repayments on third party borrowings
 
(1,180
)
 
(241
)
Changes in short-term borrowings
 
250

 
(183
)
Interest paid
 
(94
)
 
(110
)
Dividends paid
 
(489
)
 
(204
)
Exercise of employee share options
 
13

 
18

Repurchases of share-based payments
 

 
(27
)
Repayment of loan with TCCC assumed in acquisition
 

 
(73
)
Return of capital to CCE shareholders
 

 
(2,963
)
Other financing activities, net
 
(2
)
 
(17
)
Net cash flows used in financing activities
 
(1,152
)
 
(626
)
Net change in cash and cash equivalents
 
(17
)
 
235

Net effect of currency exchange rate changes on cash and cash equivalents
 
(9
)
 
(5
)
Cash and cash equivalents at beginning of period
 
386

 
156

Cash and cash equivalents at end of period
 
360

 
386






SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 


 
COCA-COLA EUROPEAN PARTNERS PLC
 
 
(Registrant)
Date: 15 February 2018
By:
/s/ Nik Jhangiani
 
Name:
Nik Jhangiani
 
Title:
Chief Financial Officer