Green Mountain Coffee Strategy 2014

2014 CAGNY CONFERENCE – FEBRUARY 19, 2014

Brian Kelley, Chief Executive Officer

FORWARD-LOOKING STATEMENTS

Certain information contained herein constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These statements may relate to: the expected impact of raw material costs and our pricing actions on our results of operations and gross margins, expected trends in net sales and earnings performance and other financial measures, the expected productivity and working capital improvements, the success of introducing and producing new product offerings, the impact of foreign exchange fluctuations, the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing, the expected results of operations of businesses acquired by us, our ability to issue debt or additional equity securities, our expectations regarding purchasing shares of our common stock under the existing authorizations, projections of payment of dividends, and the impact of the inquiry initiated by the SEC and any related litigation or additional governmental inquiry or enforcement proceedings. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, "Item 1A. Risk Factors," and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2013 Annual Report filed on Form 10-K, as amended, and elsewhere in this report and those described from time to time in our future reports filed with the Securities and Exchange Commission. Actual results could differ materially from those projected in the forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GAAP TO NON-GAAP RECONCILIATIONS

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude any gain from sale of the Filterfresh U.S.-based coffee services business; legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation; and non-cash acquisition-related items such as amortization of identifiable intangibles, each of which include adjustments to show the tax impact of excluding these items. These amounts are not in accordance with, or an alternative to, GAAP. The Company's management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company's results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the "GAAP to Non-GAAP Reconciliation" table that accompanies this document for a full reconciliation the Company's GAAP to non-GAAP results.

Who We Are

Creating a Premium in the Beverage Category

Our Innovation Capabilities

Financial Overview

GMCR TODAY

Revenue Growth

Operating Margin

Revenue

Dividend Yield

ROIC

*Excluding 53rd Week

12%*

18%

$4.4B

1%

19%

LTM as of Q1 Fiscal Year 2014 * excluding 53rd week of Fiscal Year 2013

EBITDA $1.0B

Technology Company?

Appliance Company?

WE ARE

Beverage Company?

Coffee Company?

an innovative, technology-driven, values-based,

personal beverage system company

COFFEE TECHNOLOGY &

A UNIQUE MERGER IN 2006 ACCELERATED THE DISRUPTION

Socially Responsible Premium Coffee

Sustainability Focused Enlightened Capitalism Win-Win Partnerships

Advanced Food Science Progressive Blending

& Roasting Brewing A Better World

Engineers Systems Design & Integration

Materials Science Heat Transfer

Injection Dosing Advanced Electronics

Fluid Dynamics Continuous Innovation

SIGNIFICANT VALUE CREATION & OPPORTUNITY FOR CONSUMERS, FOR CUSTOMERS, FOR SHAREHOLDERS

The ultimate at-home coffee experience

Accelerated a category

Creating significant value for consumers, customers &

shareholders

SIGNIFICANT VALUE CREATION & OPPORTUNITY FOR CONSUMERS, FOR CUSTOMERS, FOR SHAREHOLDERS

+20 billion packs sold

+35 million Keurig® brewers sold

83% Keurig® brand awareness

+60% repeat rates

OUR PURPOSE AND MISSION

Our Purpose

Create the ultimate beverage experience in every life we touch, from source to cup – transforming the way the world understands business

A Keurig® brewer on every counter and a beverage for every occasion

Our Mission

OUR VALUES

Our boundaryless approach to collaboration creates benefits for all.

We Partner for Mutual Success

With courage and curiosity, we are shaping the future by redefining the consumer experience.

We Innovate with Passion

Our team sets ambitious goals and meets each challenge with unified purpose and character.

We Play to Win

We use the power of business to make the world a better place.

We Brew a Better World

GMCR LEADERSHIP BACKGROUNDS

WHO ARE WE

9 PRODUCTION FACILITIES

2 R&D FACILITIES

460 ENGINEERS & SCIENTISTS

6250 EMPLOYEES

320 PATENTS ISSUED GLOBALLY

244 PATENT APPLICATIONS

PENDING GLOBALLY

OUR GLOBAL SUPPLY CHAIN FOOTPRINT

BREWER SOURCING GMCR OFFICES & MANUFACTURING BEVERAGE SOURCING

A Keurig® brewer on every counter and a beverage for every occasion

OUR BUSINESS MODEL

INST

ALL

ED B

ASE

OF

BR

EWER

S

DAILY SINGLE USE PACKS PER BREWER

18

FOUNDATION OF THE KEURIG SYSTEM’S SUCCESS

Intuitive simplicity

Less waste

Ultra-convenient

Vast brand selection

Freshest taste… every time

DESIGNED FOR THE FIVE SENSES

A network system effect

KEURIG® IS AN ADVANCED, PERSONAL BEVERAGE SYSTEM

A brand accelerator

A premium experience brought into the home

An enabler to understand the demand signal in home

An in-home beverage creation system

A POWERFUL PORTFOLIO OF BRANDS

A BREWER ON EVERY COUNTER

• HOUSEHOLDS

• OFFICES

• OTHER LOCATIONS

• REGIONS

KEURIG®BREWED® BRANDS

22

BEVERAGE SYSTEM

A NEW GATEWAY FOR

BRANDS

REGENERATING GROWTH CYCLE

NEW BEVERAGE CATEGORIES

http://www.twiningsusa.com/

MULTI-BRANDED SYSTEM UNIQUE BEVERAGE & APPLIANCE MODEL

VALUABLE, ‘SMART’ COUNTERTOP REAL ESTATE MUTUALLY BENEFICIAL PARTNERSHIP CAPABILITY

OUR COMPETITIVE EDGE

INNOVATION VIA HOLISTIC SYSTEM DESIGN & EXECUTION

DISCIPLINED CAPITAL ALLOCATION STRATEGY

Reinvest in the business to drive revenue growth

Tuck In M&A for specific technologies, market distribution and/or brands

Return cash to shareholders in form of dividends and share repurchases

YTD TOTAL RETURN 5YR TOTAL RETURN 3YR TOTAL RETURN

STOCK PERFORMANCE

Source: Bloomberg *YTD return (12/31/2013-2/14/2014) *3 year return (2/14/2011-2/14/2014) *5 year return (2/13/2009-2/14/2014)

54%

-4%

0%

GMCR Peer Group Russell 1000Index

151%

70%

48%


1165%

252%

154%


Who We Are



Financial Overview

POWER OF KEURIG® TO PREMIUMIZE

Coffee

Tea

Brewers

80%

20%

% U.S. Households

90%

10%

Consumption Growth* 2009-2012

U.S. CONSUMPTION GROWTH SKEWS HEAVILY TOWARD HIGH-INCOME HOUSEHOLDS

• Source: Institute for New Economic Thinking • Inflation-adjusted consumption between 2009 and 2012

% US HH by Income

Increase in inflation adjusted consumption ’09-’12

SINGLE CUP COFFEE SKEWS TO HIGHER INCOME DEMOGRAPHIC

63% 55% 44%

37% 45% 56%

% of U.S. Households % of Dollars Sales % of Dollars Sales

HH IncomeGreater Than orEqual To $70K

HH Income LessThan $70K

Total coffee Single cup coffee

Source: IRI U.S. All Outlet Panel Data Ending 12.29.13

HOT BEVERAGES LEAD CATEGORY DOLLAR GROWTH

6%

-1%

0%

-1%

0%

1%

2%

3%

4%

5%

6%

Hot Beverages Cold Beverages All Beverages

Source: IRI U.S. Multi-Outlet Data Ending 12.29.13

BEVERAGE CATEGORY DOLLAR GROWTH

Source: IRI, 52 Weeks Ending 12/29/13

7%

5%

-1% -2%

3%

8%

Hot Tea Coffee All OtherBeverages

Source: IRI U.S. Multi-Outlet Data Ending 12.29.13 Note: All Other includes: CSD, Water, Energy Drinks, Sports Drinks, Juices and Milk

THE KEURIG® SYSTEM IS DRIVING COFFEE CATEGORY DOLLAR GROWTH

5%

44%

3%

-6% -9% -20%

-10%

0%

10%

20%

30%

40%

50%

60%

Coffee Single Cup Instant Ground Whole

Source: IRI, 52 Weeks Ending 12/29/13 Source: IRI U.S. Multi-Outlet Data Ending 12.29.13

THE KEURIG® SYSTEM IS DRIVING TEA CATEGORY DOLLAR GROWTH

7%

38%

4%

0%

10%

20%

30%

40%

50%

60%

Hot Tea Single Cup Non- Single CupSource: IRI, 52 Weeks Ending 12/29/13


TOTAL COFFEE EQ SERVINGS GREW 5% SINCE 2009

34

33,473 33,673 33,340 33,897 35,243

2009 2010 2011 2012 2013

+5%

Source: IRI Multi-Outlet Data Ending 12/22/13 Source: IRI U.S. Multi-Outlet Data Ending 12.22.13

PRICE PER COFFEE EQ SERVING IS UP 45% VS. 2009

35

$0.16 $0.17

$0.21 $0.23 $0.24

2009 2010 2011 2012 2013

+45%


$5,427 $5,755

$7,013 $7,882 $8,290

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2009 2010 2011 2012 2013

Coffee Dollar Sales (millions)

COFFEE CATEGORY DOLLARS GREW 53% SINCE 2009

36

+53%


$5,427 $5,755

$7,013 $7,882 $8,290

2% 5%

11%

21%

29%

0.0

10.0

20.0

30.0

40.0

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2009 2010 2011 2012 2013

Coffee Dollar Sales (millions) Single Cup Share of Total Coffee

COFFEE CATEGORY DOLLARS GREW 53% SINCE 2009

37 Source: IRI Multi-Outlet Data Ending 12/22/13


+53%

TEA EQ SERVINGS HAVE SLIGHTLY DECLINED SINCE 2009

38

13,501 13,574 13,629 13,233 13,260

2009 2010 2011 2012 2013

-2%


PRICE PER TEA EQ SERVING GREW BY 24% SINCE 2009

39

$0.08 $0.08 $0.08 $0.09

$0.09

2009 2010 2011 2012 2013

+24%


$1,026 $1,046 $1,087 $1,164 $1,245

$0

$2,000

2009 2010 2011 2012 2013

Tea Dollar Sales (millions)

TEA CATEGORY DOLLARS GREW BY 21% SINCE 2009

40

+21%


$1,026 $1,046 $1,087 $1,164 $1,245

0.2% 0.9% 3.3%

8.6%

11.0%

0.0

10.0

20.0

$0

$2,000

2009 2010 2011 2012 2013

Tea Dollar Sales (millions) Single Cup Share of Total Tea

TEA CATEGORY DOLLARS GREW BY 21% SINCE 2009

41

+21%


15% 14% 10% 10% 7% 7% 5%

-7% -11% -12%

COFFEE #1 IN FOOD & BEVERAGES IN DOLLARS PER BUYER % CHANGE 2009 - 2013

42 Source: IRI All Outlet Panel Data Ending 12/29/13

Coffee is #1 among 170 food/drink categories

Source: IRI Dollars per Buyer % Change – CY 2013 vs. CY 2009 – Total U.S. All Outlet

49% Key beverage categories

TOTAL BEVERAGE CATEGORY


Carbonated Beverages

24%

Milk 20%

Bottled Water 11%

Shelf-Stable Juice 10%

Rfg Bev 9%

Sports & Energy Drinks

7%

Ground Coffee 6%

Single Cup Coffee 3%

RTD Cold Tea/Coffee

3%

Tea Bags 1%

All Other Cold 4%

All Other Hot 2%

Total Beverage Sales CY 2013: $79,607 million


SINGLE CUP BREWERS SKEW TO HIGHER INCOME DEMOGRAPHIC

63% 52% 69%

37% 48% 31%

% of U.S. Households % of Dollars Sales % of Dollars Sales

HH IncomeGreater Than orEqual To $75K

HH Income LessThan $75K

Drip Coffeemakers

Single Cup Brewers

Source: NPD U.S. Consumer Panel Data – 12 Months Ending Nov ‘13

COFFEE MAKER UNITS GROWING SLIGHTLY

46

21M 21M 22M

2011 2012 2013

Coffee Maker Units (millions) Total Keurig Share

+2%

Source: IRI Multi-Outlet Data Ending 12/22/13 Source: NPD U.S.; total Keurig share includes licensed brewer partners

15% 22% 25%

PRICE PER COFFEE MAKER UNIT GREW 26% SINCE 2011

47

$41.00

$49.00 $52.00

2011 2012 2013

+26%

Source: IRI Multi-Outlet Data Ending 12/22/13 Source: NPD U.S. Data

$880 $1,049 $1,130

$0

$2,000

2011 2012 2013

Coffee Maker Sales (millions)

COFFEE MAKER CATEGORY DOLLARS GROWING AT 28%

48

Total Coffee Dollar Sales Trend by Year and Single-Cup Pack Share – Total U.S. Multi-Outlet

+28%

Source: IRI Multi-Outlet Data Ending 12/22/13 Source: NPD U.S. Data

Source: IRI Multi-Outlet Data Ending 12/22/13

$880 $1,049 $1,130

43%

53% 55%

40.0

60.0

80.0

$0

$2,000

2011 2012 2013

Coffee Maker Sales (millions) Single Serve Unit Share of Total Coffee

COFFEE MAKER CATEGORY DOLLARS GROWING AT 28%

49

Total Coffee Dollar Sales Trend by Year and Single-Cup Pack Share – Total U.S. Multi-Outlet

+28%

Source: NPD U.S. Data

Who We Are



Financial Overview

OUR INNOVATION CAPABILITIES

KEVIN SULLIVAN, CHIEF TECHNOLOGY OFFICER

INNOVATION

OUR INNOVATION CAPABILITIES

52

BEVERAGES TECHNOLOGY

OUR POWERFUL ‘SYSTEM ENGINEERING’ APPROACH

53

Great Beverages, Constant Innovation, At Scale

APPLIANCE PORTION PACK MANUFACTURING

EQUIPMENT BEVERAGE

THE COMBINATION OF OUR SYSTEM APPROACH

54

Appliance

Manufacturing Equipment

Portion Pack

Beverage

A SYSTEM APPROACH IS OUR ADVANTAGE

OUR APPLIANCE R&D LEADERSHIP

FOCUS ON RESEARCH & DEVELOPMENT

57

2011 2013

+226%

* GMCR FY 2011 and 2013 R&D Expenses

OUR BEVERAGE INNOVATION CAPABILITIES

TOM NOVAK, SVP, BEVERAGE R&D AND REGULATORY AFFAIRS

OUR INTEGRATED BEVERAGE SYSTEM

59

THE POD

THE INGREDIENTS

PROCESSING

THE BREWER

4 COMPONENTS:

• 4 Degrees of Freedom • 6 Interactions/Synergies • Multiple Brewer Settings

Capability for Breakthrough Quality

THE BEVERAGE

SYSTEM-INHERENT ADVANTAGES FOR BEVERAGE DELIVERY

60

Taste

Convenience Nutrition

Variety Freshness

Experiential

OUR BEVERAGE DEVELOPMENT ORGANIZATION

61

PRODUCT DEVELOPMENT

PROCESS DEVELOPMENT

PACKAGE DEVELOPMENT

Sensory Testing

Marketing Consumer Insights

Analytical Testing

Manufacturing

Microbiology

Pod

Carton

Display

Distribution Shelf Life

Regulatory Affairs

System Partners

Brewer Platforms Supplier Partners

2007 2013

SPECIALTY BEVERAGES DEVELOPMENT

62

ICED COFFEES

HOT COCOAS - SWEET TREATS

HOT APPLE CIDER ICED FRUIT BREWS LEMONADE

LATTES - CAPPUCCINOS SWEET & CREAMY ICED COFFEES

WELLNESS COFFEES

ICED TEAS WELLNESS TEAS

COFFEE

TEA

BLACK COFFEES

INDULGENT

LEAF TEAS

FRUIT BREWS

KEURIG®COLD BEVERAGE DEVELOPMENT

63

COLA

ICED TEA

Stills

Carbonated

FLAVORED

CLEAR

OLD FASHIONED SODA FOUNTAIN SPARKLING FLAVORED WATERS NATURAL

DIET FLAVORED SELTZERS

ISOTONICS JUICE DRINKS

FLAVORED WATERS

LEMONADE

JUICE SPRITZERS

OUR BEVERAGE R&D LEADERSHIP

INNOVATION UPDATE

BRIAN KELLEY, CHIEF EXECUTIVE OFFICER

INNOVATION PIPELINE

Keurig® 2.0 Keurig® Cold

NEW KEURIG® 2.0

Offers all 50+ Keurig® system beverage brands

Brews all Keurig® K-Cup®, Vue® and K-Carafe™ packs

First ever Keurig® brewer to brew a single cup or carafe of coffee

Uses proprietary technology to identify and perfectly brew only Keurig® packs

Offered at similar price points

Will be available at all current Keurig® retailers and replaces current Keurig® brewer models

KEURIG® SUCCESS – SOLVING CONSUMER TRADE-OFFS

68

Larger volume

Multiple servings

Inexpensive

KEURIG® SUCCESS – SOLVING CONSUMER TRADE-OFFS

69

Convenient

Low mess

Fast

Reduce coffee waste

Brand variety

Consistent taste

Larger volume

Multiple servings

Inexpensive

vs

HIGHLY CONFIDENTIAL – INTERNAL USE ONLY 70

KEURIG®2.0 – STRATEGIC GROWTH OPPORTUNITY

Brings new households into the Keurig®system

Drives increased consumption among Keurig®households

Drives incremental volume, profit and consumer value

80% of U.S. households still not using single cup

SINGLE CUP AT EARLY STAGE OF DEVELOPMENT

73

20%

58%

22%

Single Serve

Drip

Other

Source: 2013 NCA Study; method of preparation among past-day drinkers

20%

58%

22%

WHY HAVE YOU NOT YET BOUGHT A KEURIG®?

60% #1 Reason (non-price):

60% Does not brew pot or larger size

Source: GMCR Survey


Brings new households into the Keurig® system

Drives increased consumption among Keurig® households


Remaining 25% is for larger volume brewing needs

COFFEE CONSUMPTION WITHIN KEURIG® HOUSEHOLDS

25%

75%

Keurig®gets ~75% of in home coffee consumption

Source: GMCR internal data

WHY CURRENT KEURIG® OWNERS STILL USE A DRIP COFFEE MAKER?

#1 Reason:

72% want larger brew sizes

Source: GMCR Survey


Brings new households into the Keurig®system

Drives increased consumption among Keurig®households


KEURIG 2.0 – ADDRESSING MULTIPLE NEEDS AND OCCASIONS

79

K-Cup® pack

K-Mug® pack

K-Carafe® pack

SMART & INTERACTIVE: PORTION PACK INFORMS BREWER

80

Proprietary Technology on Pack

Informs Brewer Perfect Cup

or Carafe

First Keurig® Brewer to brew a single cup + carafe

KEURIG COLD™

KEURIG COLD™ – A TECHNICAL BREAKTHROUGH

Temperature: it needs to be served cold

Dosing: precise flavor blend; precise carbonation every time

Carbonation: without a CO2 tank

Space/$: Keurig® footprint and attractive price range

Brand Variety: multi-brand system

One touch simplicity quality and variety

Ensures a consistently perfect taste and carbonation profile every time

Freshly prepared carbonated, sparkling, and still beverages

KEURIG COLD™

Multi-brand, open architecture platform to optimize convenience and choice

Announced global strategic partner

Launching: fiscal 2015

Who We Are



Financial Overview

FINANCIAL OVERVIEW

FRAN RATHKE, CHIEF FINANCIAL OFFICER

5-year CAGR of 55%

$ IN MILLIONS

STRONG SALES GROWTH

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2009 2010 2011 2012 2013 LTM Dec'13

* Excludes the 53rd week of FY2012 which added approximately $90.0 million in net sales; approximately $11.0 million (net of income taxes of $5.8 million) in net income; and, approximately $0.07 in diluted earnings per share in the fourth quarter and fiscal year 2012.

*

STRONG IMPROVEMENTS IN GROSS MARGINS

31.2% 31.4%

34.1% 32.9%*

37.2%

28%

30%

32%

34%

36%

38%

$-

$400

$800

$1,200

$1,600

$2,000

2009 2010 2011 2012* 2013

Gross Profit % of Net Sales

Gross Profit ($ in millions)

Gross Margin


PROCUREMENT LOGISTICS MANUFACTURING

PRODUCTIVITY WILL DELIVER $100M BY END OF FY15

STRONG NON-GAAP OPERATING MARGIN IMPROVEMENT

10.4% 12.7%

16.2% 16.0%

18.7%

5.0%

8.0%

11.0%

14.0%

17.0%

20.0%

$(100)

$100

$300

$500

$700

$900

2009 2010 2011 2012* 2013

Non-GAAP Operating Income % of Net Sales

Non-GAAP Operating

Income ($ in millions)

As % of Net Sales


5-year CAGR of 74%

STRONG NON-GAAP EPS GROWTH

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

2009 2010 2011 2012 2013 LTM Dec'13*


5-year CAGR of 76%

STRONG GAAP EPS GROWTH

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

2009 2010 2011 2012* 2013

* Includes the 53rd week of FY2012 which added approximately $90.0 million in net sales; approximately $11.0 million (net of income taxes of $5.8 million) in net income; and, approximately $0.07 in diluted earnings per share in the fourth quarter and fiscal year 2012.

CAPITAL INVESTMENT TO SUPPORT GROWTH

11% 13%

5%

0%

2%

4%

6%

8%

10%

12%

14%

$-

$100

$200

$300

$400

$500

$600

2011 2012* 2013 2014

Hot Growth Cold Growth IT and Other As a % Net Sales* Excludes the 53rd week of FY2012

($ in millions) As a % of Net Sales

1

1 Guidance provided by the Company on February 5, 2014

~ 9%

$(283)

$77

$200 - 300

$(300)

$(200)

$(100)

$-

$100

$200

$300

$400

$500

$600

2011 2012 2013 Q1'14

FREE CASH FLOW

Free Cash Flow

($ in millions)

* Guidance provided by the Company on February 5, 2013

Free cash flow

$603

2014 Est.*

With improving returns on capital

STRONG RETURNS

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2009 2010 2011 2012 2013

Note: GAAP ROIC is the sum of LTM GAAP Net Income / ((1st quarter of LTM debt + equity plus 4th quarter of LTM debt + equity)/2)

KEY TERMS OF RECENT STRATEGIC RELATIONSHIP

• 10-year strategic global partnership • Collaborate on intro of The Coca-Cola Company brand portfolio in the

Keurig Cold™ beverage system • Work together to introduce Keurig Cold™ to consumers worldwide

Commercial Agreement

• 10% minority investment, representing 16.684 million new GMCR shares • New shares priced at $74.98, for ~$1.25 billion in total proceeds • Option to increase ownership to 16% with open market purchases

Equity Agreement

FY 2014 OUTLOOK & NON-GAAP EPS WALK THROUGH*

* Per guidance provided by GMCR on February 5, 2014.

FY’13 non-GAAP EPS base $3.39

Expected Fx impact ($0.11)

Estimated Coca-Cola/Lavazza-related dilution (absent any actions GMCR may take to offset dilution)

~ ($0.20)

Constant currency non-GAAP EPS growth 14% 17% to

Constant currency non-GAAP EPS $3.86 $3.96 to

FY’14 non-GAAP EPS pre Coca-Cola transaction $3.75 $3.85 to

FY’14 non-GAAP EPS post dilution $3.55 $3.65 to

Revenue growth High single digits

FY 2015 NON-GAAP EPS WALK THROUGH*

* Per guidance provided by GMCR on February 5, 2014. ** includes Company’s assumptions on share repurchases

Underlying business mid-teens growth

Less: Net dilution impact for Coca-Cola transaction**

Non-GAAP EPS guidance Mid-single digit growth (est. 4% to 7%)

FY’15 non-GAAP EPS estimate $3.69 $3.90 to

Less: Incremental growth investment _______________

FY’14 non-GAAP EPS base $3.55 $3.65 to

BALANCE SHEET & CAPITAL DEPLOYMENT

Share Repurchases & Dividend

• In Nov. 2013 announced incremental share repurchase authorization of up to $1 billion and as of Q1’14 $1.1 billion remains.

• Committed to meaningful share repurchase program to reduce dilution from The Coca-Cola Company transaction

• Annual dividend of $1.00 per share, yield of about 1%

• Latest 12 Months Earnings before Interest, Taxes, Depreciation and Amortization • 2014 is estimated mid-point of free cash flow guidance on 2/5/14

Strong Balance Sheet Metrics

Total Debt Q1'14 $ 260M

Total Cash Q1'14 $ 350M

Net Cash $ 90M

LTM EBITDA $ 1,032M

Total Debt/EBITDA 0.3X

Net Debt/EBITDA 0X

THANK YOU!

Green Mountain Coffee Strategy 2014

Business

Transcript of Green Mountain Coffee Strategy 2014