15 May 2019 Market Announcements Office ASX Limited Exchange - - PDF document

PO Box 1895 North Sydney NSW 2060, Australia ccamatil.com

15 May 2019 Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam COCA-COLA AMATIL LIMITED 2019 AGM – CHAIRMAN AND GROUP MANAGING DIRECTOR SPEECHES & PRESENTATION Please find attached the following documents to be delivered at Coca-Cola Amatil Limited’s 2019 Annual General Meeting (AGM) in Sydney today:

• 1. Chairman’s speech;
• 2. Group Managing Director’s speech; and
• 3. AGM Presentation Slides.

A live webcast of the 2019 AGM will be available on Amatil website’s at: www.ccamatil.com/agm The results of the AGM will be communicated to the ASX shortly after conclusion of the AGM. Yours faithfully

Jane Bowd Group Company Secretary

2019 COCA-COLA AMATIL AGM

15 May 2019

CHAIRMAN’S ADDRESS

ILANA ATLAS - CHAIRMAN

Ladies and gentlemen…. It is a privilege to join you today at my second Coca-Cola Amatil Annual General Meeting as Chairman. I will take the opportunity to discuss four things:

• First, our financial performance;
• Second, our partnerships and people;
• Third, our progress in sugar reduction, sustainable packaging and carbon reduction; and
• Finally, an update on the Board.

I’ll then ask Alison to provide more detail on the Company’s performance by segment and to comment on the outlook for this year. And as usual we are happy to take questions on these or any other topics at the appropriate point in today’s proceedings. 2018 was a significant year for Coca-Cola Amatil. It marked the first year of our two-year transition program, as we invested today for a stronger and more sustainable organisation tomorrow. Our 2018 earnings were impacted by planned investment in our Australian and Indonesian businesses and the implementation of container deposit schemes, compounded by economic factors in Indonesia and operational challenges in Papua New Guinea. Our overall Group result from continuing operations for 2018 was a 3.9 per cent decrease in underlying earnings per share1 with a 7.0 per cent decrease in EPS1 over the full year. There was a 1.1 per cent increase in trading revenue1 to $4.75 billion, and a 6.5 per cent decrease in underlying earnings before interest and tax1 to $634.5 million. Profit attributable to shareholders1 from continuing operations (before non-trading items) also decreased 6.5 per cent to $388.3 million. The final dividend declared was 26.0 cents per share, franked at 50 per cent, representing an underlying payout ratio of 87.6 per cent for the full year and a total dividend of 47 cents Despite strong performances in our New Zealand, Fiji and Alcohol and Coffee businesses, our Group results are not where the Board would like them to be. Coca-Cola Amatil’s medium and long-term value is the main focus of the Board’s work. Our plan is for the business to return to mid-single- digit growth in earnings per share from 2020.

Our planned investment in our Australian Beverages and Indonesian businesses, will continue in

• 2019. The Board is pleased with the progress of the transformation of these businesses in

partnership with The Coca-Cola Company and the encouraging signs we saw in both markets in the second half of last year. In November 2018 we announced the conclusion of the strategic review process of SPC and the decision to proceed towards divestment. SPC has been a much-loved part of the Amatil portfolio since 2005, and has a great history as Australia’s oldest fruit processing company. We’re confident that the divestment is the right course for SPC. Given the uncertainty of the financial outcome of the sale process and the wide range of offers received, we recognised a non-cash impairment of the carrying value of SPC’s net assets to zero in the 2018 financial year. The impairment did not impact the Group’s underlying result but was reflected in our statutory result. There has been strong interest in the divestment process and we are currently in negotiations with a short list of parties. Coca-Cola Amatil has a long and proud history of successful brand partnerships, based on trust and shared values. As in previous years, we have worked closely and successfully with all of our partners, including The Coca-Cola Company, Beam Suntory, Monster Energy and Molson Coors International. In 2018 The Coca-Cola Company “Beverages for Life” strategy benefited Amatil in all of our markets with a renewed consumer centric approach. The year saw us work closely together to meet the constantly changing needs of our customers and consumers preferences including the expansion of the Coca-Cola No Sugar rotational flavours, and Amatil’s Mount Franklin flavoured stills and Mount Franklin sparkling in a can. In addition to an unrivalled pipeline of new product development across all of our markets - such as New Zealand’s Coca-Cola With 100% Stevia and new packaging formats for Frestea - we extended our shared portfolio with the joint acquisition of a 45 per cent interest in the Australia-based Made Group. Made is the creator of a great range of popular “better for you” brands including Cocobella, Rokeby Farms and Impressed Juice. We remain aligned on our ongoing investment in the Accelerated Australian Growth Plan, and on delivering the category and brand portfolio plans within our Indonesian Accelerate to Transform

• strategy. Both these plans involve joint investment with revenue and earnings growth as their

priorities. We look forward to more opportunities to grow together with our partners across our markets utilising the unrivalled portfolios of all our brand partners. The Board understands that our success as an organisation depends on the capabilities of our people and fostering a positive culture consistent with our values of focusing on Today & Tomorrow, Taking the Initiative & Owning the Outcome, and being Straightforward & Open. As I have said before, good people don’t end up here by accident; when we find them, we must provide excellent career and development opportunities, and appropriate reward and recognition.

In 2018 we again invested significantly in the capability of our Indonesian team. The objective of this was twofold. First, to support the delivery of the Accelerate to Transform strategy, and second, to develop a replicable model that could be leveraged in other territories. We are now seeing the benefit of this investment as we implement the Indonesian operational excellence program in Papua New Guinea. This is delivering a noticeable shift in both the culture and performance of the Business. Our diversity and inclusion objectives are aligned to the needs of our business. We are heading in the right direction in relation to gender diversity, with 34 per cent of women in senior executive roles compared to 31 per cent in 2017. While we are pleased with this progress we know there is more to do, particularly to improve gender diversity in sales, supply chain and operational roles. Our involvement in programs including Women in Warehousing, Supply Careers for Women and Women in Drinks will help to do this. The David Gonski Women in Leadership program is now in its fourth year of supporting the development of our female talent across Amatil. I’m very pleased to welcome a number of participants in this year’s program who are in the audience today. The results of the program speak for themselves, with many graduates from past years programs gaining promotions, pursuing further professional development opportunities and importantly ‘paying it forward’ by sharing their learnings with other women in their teams and the business. We also know that achieving diversity outcomes requires an inclusive culture and practices. Our actions in 2018 included:

• continuation of our Australian Kids@Work vacation care program; and
• receipt of the Rainbow Tick accreditation for our New Zealand business.

Turning now to sustainability. In 2018 we built on our commitment to deliver a lasting, distinctive and positive contribution to the world in which we live. We recognise that our approach to sustainability continues to underpin our future performance. Our stakeholders are looking to us to act. Our sustainability framework is focused on the areas where we can have the greatest impact, our people, consumer wellbeing, the environment and our communities. The release of our 2020 goals in our 2017 Sustainability Report was well received. This was the first time we set public commitments in these areas, and we have made good progress toward these

• goals. In some areas we have already achieved our target.

Three priority areas for Amatil are consumer wellbeing, packaging neutrality and carbon reduction. These are not fringe issues for Amatil. And in relation to wellbeing and packaging, they are both central to our commercial offering, with customers and consumers heavily focused on these issues, and to our obligations as an industry leader.

In 2017 we committed to reduce the sugar in our portfolio1 by 10 per cent by 2020 in Australia and New Zealand. Last year we enhanced this commitment and are now targeting a 20 per cent reduction by 2025 in both markets. At the end of 2018 we had made strong progress with a 5.7 per cent reduction1 of sugar against the 2016 baseline in Australia and 3.2 per cent in New Zealand. We’re continuing to drive small pack-size availability in all distribution channels, in all markets. This included the continued roll-out of new Coca-Cola No-Sugar flavour variants in 200ml small pack sizes in Australia and New Zealand. Small packs are now offered in 95 per cent of grocery stores and 70 per cent of petrol and convenience stores in Australia and 100 per cent of grocery stores in New Zealand. In Australia and New Zealand we launched several low- and no-kilojoule, or reduced sugar options. This included Mount Franklin flavoured water for kids with no sugar, preservatives or sweeteners in Australia, and Coca-Cola Stevia No-Sugar, a global first, in New Zealand. While action on consumer wellbeing is well progressed in Australia and New Zealand, we know we must take action in all of our markets. In 2018 we committed to measuring sugar content in our portfolio in Indonesia, PNG, Fiji and

• Samoa. This has provided us with an understanding of the portfolio mix and the opportunities to

reduce sugar. I am pleased to say that action is already underway. In Indonesia we implemented a series of reformulations in 2018 that has reduced sugar in our Sparkling and Tea products by 10 per cent compared to our 2016 baseline. We have also expanded

• ur product range to offer additional low or no calorie options, as well as introduced smaller pack

sizes to help consumers moderate their daily intake. In Fiji we have embarked on a program of new product development where the focus has been on low- and no-sugar options. In 2018 this included the launch of five new low- or no-sugar products including Sprite No Sugar and Powerade Zero. We will continue to drive availability of these products across the market and look for other opportunities. We support the World Health Organisation recommendation of no more than 10 per cent of daily energy intake derived from added sugars. In relation to packaging, we’ve heard the community message loud and clear – unnecessary packaging is unacceptable and we need to be part of the solution. Over recent years we’ve made significant progress in improving packaging sustainability. In 2018 we signed up to the Australian National Packaging Targets and the New Zealand Plastics Packaging

• Declaration. Both of these set targets for recycling and recycled content and commit us to phasing
• ut unnecessary and problematic single-use plastics in production and end products.

Since then, we have delivered 100 per cent recyclability for all our plastic bottles across the Australian non-alcoholic range, and 100 per cent recycled content in our single serve Mount Franklin

stills and Peats Ridge bottles in Australia, and in our Pump Minis and Kiwi Blue 600ml bottles in New Zealand. And as a further major step forward, we recently announced an increase in the overall recycled plastic content for our Australian portfolio from 26 per cent this year to 53 per cent from 2020. That means from next year, 7 out of 10 of our plastic bottles in Australia will be made from 100 per cent recycled plastic. That will be all still and sparkling plastic bottles 600ml and below as well as the 750ml Pump. This sets a benchmark for the bottling industry, which we hope other companies will follow and support. The shift to recycled packaging also makes commercial sense. Customer and consumer demand for recyclability and recycled content is immense, and companies that do not meet this demand risk being left behind. Additionally, we have from this year ceased distribution of plastic drinking straws and stirrers and replaced them with biodegradable paper straws. In the last three months alone this has reduced plastic straw use in Australia by 210,000 straws. We have also taken the step of partnering with Keep Australia Beautiful to encourage the provision of more recycling opportunities at litter hotspots nationwide. To advance recycling outcomes we support cost-effective, well-run container deposit schemes. Amatil has operated the South Australian container deposit scheme for more than forty years and more recently has been appointed in a Scheme Coordinator role in NSW, ACT, Queensland, the Northern Territory and, as announced yesterday, Western Australia. Our actions on packaging neutrality also extend beyond Australia and New Zealand. In Fiji Amatil has successfully run a voluntary container collection and recycling program, Mission Pacific, since

• 1999. Currently Mission Pacific collects approximately 24 per cent of all non-alcoholic containers sold

by Amatil in Fiji and we are investing to build awareness of the scheme to improve collection rates. In Indonesia, we celebrated our eleventh year of supporting the Bali Beach Clean-Up program. With a local workforce of 78, the program has removed more than 38 million kilograms of rubbish from 9.7 kilometres of shoreline in Bali. These actions are steps toward achieving The Coca-Cola Company’s aspiration of a ‘World Without Waste’. The objective of World Without Waste is to collect and recycle a container for every container the System sells. Lastly, we are on track to source 60 per cent of our energy from low-carbon and renewables by next year, across all our territories. As outlined in our 2018 Sustainability Report we are presently at 56.2 per cent, principally in natural gas, wind and solar. Bottling is energy-intensive, so our shift to low-carbon and renewables is a significant change. This year we’re rolling out more renewable energy including new solar panels in Eastern Creek, Richlands and Kewdale in Australia, and Cibitung in Indonesia. This demonstrates our willingness to be an active and engaged community partner, and to shape the future through proactive collaboration with customers, consumers and governments in each of

• ur markets.

Finally, I would like to provide a brief Board update. Prior to last year’s AGM, our longest-serving director Catherine Brenner advised the Board that she would not seek re-election at the end of her current term. Catherine has been on the Board since April 2008 and successfully stood for re-election on four occasions. She has consistently taken a leadership position in Amatil’s sustainability agenda and has been a driving force behind the step change we have undertaken in consumer wellbeing, safety and packaging, particularly through her chairmanship of our Risk & Sustainability Committee. Catherine’s corporate finance, mergers and acquisitions experience has also been vital in Board

• deliberations. On behalf of all members of the Board I thank Catherine for her outstanding

contribution to the company over the last 11 years. Going forward we will maintain our focus on the priorities of business performance, partnerships, capability and sustainability. Our specific priorities for 2019 include progressing on our journey to return the Australian Beverages business to growth, increasing the growth and profitability of our Indonesian operations and maintaining the growth momentum in New Zealand, Fiji, PNG and Alcohol & Coffee. Our people and culture are central to our success, and the Board recognises the efforts of every member of the Coca-Cola Amatil team in helping to deliver on our performance and growth plans. Thank you to each and every member of that team for their commitment and contribution. I would like to take this opportunity to thank my Board colleagues for their ongoing active engagement and wise counsel. And to you our shareholders, thank you for your ongoing support of the management of the company and of Coca-Cola Amatil’s operations in all of our territories and markets. I will now hand over to Alison. Before Alison comes to the microphone we will play a short video that provides a bit more background information on our recent recycled plastics announcement.

GROUP MANAGING DIRECTOR’S ADDRESS

ALISON WATKINS – GROUP MANAGING DIRECTOR

Thank you, Ilana, and good morning ladies and gentlemen. I’d like to provide you with an outline of our 2018 financial results and progress against the overall Group Strategy. I’ll then talk about our outlook for 2019 and beyond. First let me introduce the members of our Group Leadership Team who have joined us this morning

• Martyn Roberts, Group Chief Financial Officer
• Peter West, Managing Director Australian Beverages
• Shane Richardson, Managing Director Alcohol & Coffee
• Betty Ivanoff, Group General Counsel
• Kate Mason, Group Director People & Culture
• Debbie Nova, Group Chief Information Officer
• Chris Sullivan, Group Director, Partners & Growth
• Liz McNamara, Group Director, Public Affairs, Communications & Sustainability

There were a number of changes and new appointments to our Group Leadership Team in 2018. Most significantly, our interim Managing Director of Australian Beverages, Mr Peter McLoughlin (Pod) stepped down in January 2018 to take an extended period of sick leave. Sadly, Pod passed away later in the year. I take this opportunity to again recognise his huge contribution to our business and to the beverages industry over the years, and to acknowledge our tremendous affection and respect for him as a member of our team. Pod distinguished himself as a straightforward and open leader who helped shape Australian Beverages’ growth plans. His unique combination of drive, care and good humour are greatly missed. In April the position of Australian Beverages Managing Director was filled on a permanent basis by Peter West. Peter is a 30-year veteran in the food and beverages industries, and was previously Managing Director of Lion Dairy and Drinks. Peter’s deep understanding of Australian and international Fast Moving Consumer Goods is already delivering for Amatil, by enabling a decisive approach to the implementation of the Accelerated Australian Growth plan. This is evident in the prioritisation of FY19 growth initiatives like the “feet on the street” program, which boosts our sales force in the state immediate consumption channel. To date this has involved the recruitment of 97 additional sales and business development staff to increase customer engagement and maximise the impact and availability of our world-class product range. Before getting into the detail of our results let me say a few words about two areas that sit at the heart of everything we do at Amatil – Our People and their Safety. The heart of our company is our people, across all our markets and countries of operation. The commitment and enthusiasm of our employees drives the success of our brands and the millions of moments of happiness and possibilities that are the foundation for the company’s growth. Thank you to all Coca-Cola Amatil team members for your commitment and hard work throughout 2018. Our unrelenting focus on keeping our people safe, well and supported continued throughout 2018. Amati’s Group-wide Health and Safety Management Framework identifies the material aspects and priorities for our Businesses. This framework, along with our policies and performance monitoring

and reporting processes, provide the foundation on which we are continuing to build our zero-harm culture at Amatil. This is a culture where everyone takes responsibility for delivering a safe work environment for themselves and their workmates. More broadly on safety performance:

• Employee injuries across Amatil decreased by five per cent compared to the prior year;
• Total Recordable Injury Frequency Rate has decreased 63 per cent since 2012, with a slight

increase in 2018 to 5.3 compared to 5.0 2017; and

• There were more than 33,000 instances of participation in employee wellbeing programs.

We are pleased with this progress but know when it comes to safety and wellbeing there is always more to do. We remain committed to this challenge and getting all of our people home to what they love every day. While progress against our ambition of zero-harm is ongoing, tragically, our Indonesian business reported a traffic-related fatality involving a member of the public in 2018. The police investigation found both the Amatil employee and the member of the public to be at fault. Such a loss of life is unacceptable and our response to this incident has been immediate and comprehensive. A full investigation was conducted, and corrective actions implemented and shared across Amatil. Support has been provided to our employee and to the family of the deceased. Going forward we maintain

• ur strong focus on driver safety in all markets, particularly in Indonesia, as well as rolling-out

programs that improve the skills, capabilities and confidence of our people in areas of safety and wellbeing. Turning now to our performance in 2018. Ilana has provided an outline of the Group result. In 2018 the three pillars of our Group Strategy - Perform, Grow, and Strong Organisation – continued to guide our direction and plans. The Perform element of our strategy remained the day- to-day focus for each of our Business’ as they implemented plans guided by our Shareholder Value Proposition. While our performance in many areas of our Shareholder Value Proposition was strong, challenges remained in Australia and Indonesia. The outcome was a Group result for 2018 that reflected these challenges as well as our commitment to investing in our businesses for a strong tomorrow. It included solid progress in some of our growth markets, and identified some areas where more work was required. Australian Beverages underlying EBIT declined 8.8 per cent mainly driven by the reinvestment of an additional $40 million into the business in 2018 through the Accelerated Australian Growth Plan. Adjusting for this additional investment, EBIT growth would have been positive for the year. However, we recognise that this investment is important in supporting the long-term growth of our business. Our performance for the year was also impacted by the NSW container deposit scheme, with NSW volumes down 3.4 per cent compared to other states which were down 0.4 per cent.

Our focus was in the must-win categories of cola and water. There were significant gains in both categories during the year, in particular, Coca-Cola volumes in Australia grew in the second half of 2018, driven by Coca-Cola No Sugar. This in-market success is a testament to the consumer trend toward low and no-sugar choices. It also reflects the success of our integrated marketing and execution strategies particularly around the key selling weeks. Our New Zealand & Fiji segment delivered another stand-out performance in 2018, with revenue up 6.9 per cent, underlying EBIT up 6.5 per cent on a constant currency basis, and volumes up 6.1 per

• cent. This was off the back of strong performances in both markets.

I would really like to call out the excellent result that Chris Litchfield and the team delivered in New Zealand with revenue, volume and EBIT growth despite cycling a strong 2017 result. This

• utstanding result has been recognised in the last week with the New Zealand business applauded

as one of four finalists in The Coca-Cola Company’s global bottler competition. Indonesia & Papua New Guinea delivered volume growth of 1.0 per cent and modest revenue growth of 0.9 per cent on a constant currency basis. While the numbers were positive, this was below our expectations for a growth segment. The result in Indonesia reflected soft market conditions, a twenty-year low in the rupiah, and higher commodity prices. Despite these challenges we achieved volume growth in each of the last three quarters in Indonesia, driven by our strategy to increase the number and availability of smaller packs in our portfolio of

• beverages. There was overall volume growth in sparkling, water, tea and dairy; and we improved
• ur value share in sparkling and held our ground in water and dairy.

Papua New Guinea achieved revenue growth for the year, despite flat volumes. EBIT came in below expectations as the business cycled the pre-election stimulus of 2017 and experienced some

• perational and logistics challenges throughout the year which have now largely been resolved.

Alcohol & Coffee delivered another strong result with 8.0 per cent revenue growth and 12.1 per cent underlying EBIT growth. This is the third consecutive year of strong growth in this segment with EBIT more than doubling from $25.8 million in 2014 to $55.7 million in 2018. We invested in the business to build capability and support our long-term growth initiatives and worked closely with our partners’ and our own brands to leverage opportunities across all categories. Corporate & Services delivered reduced earnings for the year due to lower earnings in the services and property divisions, and investment in Amatil X and group capabilities. SPC wasn’t included in this segment following our divestment decision, resulting in the business being treated as a discontinued operation in our result. Let me now provide a brief update in relation to the other two pillars of our Group Strategy – Grow and Strong Organisation. We are continuing to look for growth opportunities within, between and beyond our existing businesses.

When we met last year we had just launched Amatil X, our emerging possibilities platform. Amatil X is designed to identify, nurture and scale opportunities for growth beyond beverages. I am pleased to be able to update you on some strong progress over the last 12 months. Our corporate accelerator program Xcelerate launched with 12 successful Founders participating in an intensive six-month program powered by start-up accelerator BlueChilli. Work undertaken by AX Ventures, our corporate venturing program, also led to two minority share investments in Doshii and TabSquare – both tech start-ups delivering value to customers today and revenue growth for Amatil into the future. Last month we launched Amatil X in Jakarta – widely recognised as the next start-up capital of Asia. You may have seen the media coverage of this announcement, which reflects the excitement and

• pportunity generated by our engagement with the innovation community in the areas of

sustainable packaging, restaurant tech and optimised service delivery. We hope to bring you further good news on Amatil X during 2019. To Perform and Grow we must have a Strong Organisation, which for us, means;

• A fit for purpose organisational and governance structure. We made good progress in 2018

with a major restructure of our People and Culture and our Information Technology teams to embed a “One Amatil” approach.

• Driving leader-led growth with a focus on capability development, strengthening our talent

pipeline and promoting from within.

• And building stronger trust and reputation for Coca-Cola Amatil via our contributions to

people, wellbeing, the environment and our local communities - including binding sustainability goals for the Group, with targets for delivery by 2020. Let me conclude with an overview of our outlook for 2019 and beyond. As we’ve said, 2019 is the second year of a two-year transition phase for Coca-Cola Amatil. We are positioned for growth in Australian Beverages in 2020 with the completion of the additional $10 million investment in our Accelerated Australian Growth Plan to increase our salesforce and, with container deposit schemes in NSW and Queensland substantially embedded by the end of 2019. In Indonesia we are encouraged by the volume growth we’ve achieved from April 2018 and will continue to deliver our Accelerate to Transform strategy with additional direct marketing expenditure to be invested in 2019; however macroeconomic conditions, weak Indonesian Rupiah, higher commodity costs and current consumer spending trends are expected to continue. New Zealand & Fiji, Papua New Guinea and Alcohol & Coffee are expected to deliver growth in line with our Shareholder Value Proposition. For Corporate & Services, an EBIT loss of $10 to $12 million is expected in line with the outlook provided in November 2018 due to lower property rental and services earnings, increased Group capability and investment in IT platforms.

As part of our cost optimisation program in Australian Beverages, we are expecting one-off costs in 2019 of up to $30 million. We are pursuing additional opportunities within our Property Division which may result in one-off gains in 2019, partially offsetting the one-off costs. We remain committed to our Shareholder Value Proposition targeting a return to delivery of mid- single digit earnings per share growth from 2020. This will depend on the success of revenue growth initiatives in Australia, Indonesian economic factors and regulatory conditions in each of our markets. While it is early in the year, our Group results so far are in line with our expectations. In Australia, some of the Accelerated Australian Growth Plan initiatives are already delivering

• results. The “feet-on-the-street” rollout in the Immediate Consumption channel is close to
• completion. In NSW Metro for example, the ramp-up in visitation frequency has resulted in a volume

improvement of two per cent year to date compared to an 11 per cent decline prior to commencement of the initiative in FY18. Most of the benefits from the nationwide rollout are expected to flow through in the second half. And we are very happy with the double-digit volume growth we’ve achieved in Indonesia in the first quarter of 2019. This marks four consecutive quarters of volume growth in this market as we headed into our busiest period of Ramadan. From a capital expenditure perspective 2019 capex for the Group is expected to be similar to Group capex in 2018, reflecting the deferred payments from 2018 and continued deployment of capital in Indonesia, including a second affordable sparkling pack line. On our dividends, we continue to target a dividend payout ratio of above 80 per cent. However, we do anticipate franking will be at a lower level in the future. Finally, we expect our balance sheet to remain conservative with flexibility to fund future growth

• pportunities. We're expecting to maintain a strong return on capital employed. We will seek to

maximise value for our shareholders by pursuing additional opportunities within our property division. In closing, I would like to thank our shareholders for your continued support of Amatil. Thank you and I’ll now hand back to Ilana.

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Presentation to Shareholders

15 May 2019

2019

ANNUAL GENERAL

Ilana Atlas, Chairman Alison Watkins, Group Managing Director

MEETING

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Coca-Cola Amatil advises that these presentation slides and any related materials and cross referenced information, contain forward looking statements which may be subject to significant uncertainties outside of Coca-Cola Amatil’s control. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Actual future events may vary from these forward looking statements and you are cautioned not to place reliance on any forward looking statement.

DISCLAIMER

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GENERAL MEETING 2019 ANNUAL

Ilana Atlas, Chairman

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ADDRESS CHAIRMAN’S

Ilana Atlas, Chairman

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PRESENTATION GROUP MANAGING DIRECTOR'S

Alison Watkins, Group Managing Director

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COCA-COLA AMATIL GROUP LEADERSHIP TEAM

Alison Watkins Group Managing Director Martyn Roberts Group Chief Financial Officer Betty Ivanoff Group General Counsel Kate Mason Group Director, People & Culture Chris Sullivan Group Director, Partners & Growth Debbie Nova Group Chief Information Officer Liz McNamara Group Director, Public Affairs, Communications & Sustainability Kadir Gunduz Managing Director, Indonesia & Papua New Guinea Chris Litchfield Managing Director, New Zealand & Fiji Shane Richardson Managing Director, Alcohol & Coffee Peter West Managing Director, Australian Beverages

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COCA-COLA AMATIL – OUR PEOPLE

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We know that our success as an organisation depends on our people. We are proud of

• ur culture and values, and the distinctive and positive contribution our people make.

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PERFORM: OUR PLANS REFLECT THREE STRATEGIC THEMES

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Strengthening category leadership position  Leading beverage brands  Innovative marketing to drive equity and sales  Evolving portfolio that adapts to changing consumer preferences

LEAD

Step change in productivity and in-market execution  World-class customer servicing capability  Route to market that provides customer diversification and real competitive advantage  Effective leverage of our large-scale, low-cost manufacturing, sales and distribution capability

EXECUTE PARTNER

Better alignment with The Coca-Cola Company and our other partners  Shared vision of success and aligned objectives  Joint plans for growing system profitability  Balanced share of risk and rewards

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SEGMENT EBIT CONTRIBUTIONS

9 Coca-Cola Amatil 2019 Annual General Meeting

Underlying EBIT $ million FY18 FY17 Change % % of Group underlying EBIT

Australian Beverages 376.1 412.6 (8.8) New Zealand & Fiji 112.4 104.8 7.3 Indonesia & Papua New Guinea 85.1 90.9 (6.4) Alcohol & Coffee 55.7 49.7 12.1 Corporate & Services 5.2 20.3 (74.4) Total Continuing Operations 634.5 678.3 (6.5) 59.3% 17.7% 8.8% 0.8% 13.4%

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GROW: WE HAVE MULTIPLE GROWTH PATHWAYS

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GROWTH WITHIN GROWTH BETWEEN GROWTH BEYOND

Additional growth within our businesses  Leveraging and extending brands and capabilities (eg our route-to-market)  Building and adding new brands and channels Additional growth between our businesses  International coffee (eg Indonesia)  International beer and rum (eg Fiji to Australia and New Zealand) Growth beyond our current businesses  Amatil X  Additional Coca-Cola territories  Extending Amatil brands and capabilities to new geographies

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STRONG ORGANISATION: UNDERPINS ALL OUR PLANS

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Develop a fit for purpose organisational and governance structure  Major restructure of our People and Culture and our IT teams to embed a “One Amatil” approach.  Continue our group wide approach to all our owned and leased property arrangements

FIT FOR PURPOSE

Drive leader led growth  Leadership capability development  Invest in our people and create opportunities for growth (eg Indonesian Step and Step Up programs)  Build capability to share across all our geographies

LEADERSHIP TRUST AND REPUTATION

Build trust and our reputation with stakeholders  Binding sustainability goals for 2020  Improvement in employee engagement over two years

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OUTLOOK

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2019 OUTLOOK

 We remain committed to our Shareholder Value Proposition targeting a return to delivery of mid-single digit earnings per share growth from 2020  This will depend on the success of revenue growth initiatives in Australia, Indonesian economic factors and regulatory conditions in each of our markets

TARGET FROM 2020 AND BEYOND

2019 will be the second year of a two-year transition phase for the Group.  Australian Beverages: we will be positioned for growth in 2020 with the completion of the additional $10 million of investment in our Accelerated Australian Growth Plan to increase our salesforce and, with container deposit schemes in NSW and Queensland substantially embedded by the end of 2019  Indonesia: we are encouraged by the volume growth we delivered from April 2018 and will continue to deliver our Accelerate to Transform strategy with additional direct marketing expenditure to be invested in 2019; however macroeconomic conditions, weak Indonesian Rupiah, higher commodity costs and current consumer spending trends are expected to continue  New Zealand & Fiji, Papua New Guinea and Alcohol & Coffee: expected to deliver growth in line with our Shareholder Value Proposition  Corporate & Services: an EBIT loss of $10 to $12 million expected in line with the outlook provided in November 2018 due to lower property rental and services earnings, increased Group capability and investment in IT platforms  As part of our cost optimisation programs in Australian Beverages, we are expecting one-off costs in 2019

• f up to $30 million

 We are pursuing additional opportunities within our Property Division which may result in one-off gains in 2019, partially offsetting the one-off costs

NON-TRADING ITEMS

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OUTLOOK: CAPEX, DIVIDENDS AND BALANCE SHEET

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CAPITAL EXPENDITURE

 Balance Sheet to remain conservative with flexibility to fund future growth

• pportunities

 Expecting to maintain strong return on capital employed  We will seek to maximise value for shareholders by pursuing additional

• pportunities within our Property Division

BALANCE SHEET

 2019 Group capex expected to be similar to Group capital expenditure in 2018, reflecting the deferred payments from 2018 and continued deployment of capital in Indonesia, including a second affordable small sparkling pack line  Continue to target medium term dividend payout ratio of over 80 per cent  It is anticipated that franking will be at a lower level in the future due to the increasing proportion of earnings from outside Australia

DIVIDENDS

ccamatil.com Coca-Cola Amatil 2019 Annual General Meeting 14

GENERAL MEETING 2019 ANNUAL

Ilana Atlas, Chairman

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Annual Reports

ITEM 1

15

To consider the Annual Report, the Financial Report and the Reports of the Directors and of the External Auditor for the year ended 31 December 2018. There is no vote for this item.

Coca-Cola Amatil 2019 Annual General Meeting

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Adoption of FY2018 Remuneration Report

ITEM 2

16 Coca-Cola Amatil 2019 Annual General Meeting

To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To adopt the Company’s Remuneration Report for the year ended 31 December 2018.” Please note that the vote on this resolution is advisory only, and does not bind the Directors

• r the Company.

An explanatory note to this item appears on page 4 of the Notice of Meeting.

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Adoption of FY2018 Remuneration Report

ITEM 2

17 Coca-Cola Amatil 2019 Annual General Meeting

Proxy & Direct Votes For Undirected Against Total Resolution 1 520,700,208 1,024,431 12,462,659 534,187,298 % of vote 97.48% 0.19% 2.33% 73.78% of issued capital

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Re-Election of Board Endorsed Directors

ITEM 3

18 Coca-Cola Amatil 2019 Annual General Meeting

Mr Massimo (John) Borghetti, AO Mr Mark Johnson

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Item 3(a) – Re-election of Mr Massimo (John) Borghetti, AO

ITEM 3

19

• Independent
• Joined Board: December 2015
• Board Committees: Chairman of the People Committee,

Member, Related Party Committee, Risk & Sustainability Committee and Nominations Committee Background Mr Borghetti was the Chief Executive Officer and Managing Director of the Virgin Australia Airline Group from May 2010 to March 2019. Mr Borghetti has had over 40 years’ experience in the aviation industry, including a long career at Qantas, which included several senior positions, including Executive General Manager. In addition to his directorship of Coca-Cola Amatil, he is a Director of the Art Gallery of the NSW Board of Trustees.

Coca-Cola Amatil 2019 Annual General Meeting

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Item 3(a) – Re-election of Mr Massimo (John) Borghetti, AO

ITEM 3

20 Coca-Cola Amatil 2019 Annual General Meeting

Proxy & Direct Votes For Undirected Against Total Resolution 2(a) 522,354,274 1,057,558 12,283,182 535,695,014 % of vote 97.51% 0.20% 2.29% 73.99% of issued capital

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Item 3(b) – Re-Election of Mr Mark Johnson

ITEM 3

21

• Independent
• Joined Board: December 2016
• Board Committees: Chairman of the Audit and Finance

Committee, Member, Risk and Sustainability Committee, Related Party Committee and Nominations Committee. Background Mr Johnson was CEO and Senior Partner of PwC from July 2008 to June 2012 and held other senior positions (both internationally and in Australia) during his 30-year career at PwC, serving major clients in areas of audit, accounting, due diligence, fund raising and risk and governance. In August 2018, Mr Johnson was appointed as a Commissioner of PT Coca-Cola Bottling Indonesia and PT Coca-Cola Distribution Indonesia, both being subsidiaries of the Company. Mr Johnson is the Chairman of G8 Education Limited, and MH Premium Farms. He is also holds several directorships with owner- managed businesses and not-for-profit organisations.

Coca-Cola Amatil 2019 Annual General Meeting

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Item 3(b) – Re-Election of Mr Mark Johnson

ITEM 3

22 Coca-Cola Amatil 2019 Annual General Meeting

Proxy & Direct Votes For Undirected Against Total Resolution 2(b) 531,747,245 1,064,610 2,189,165 535,001,020 % of vote 99.39% 0.20% 0.41% 73.90% of issued capital

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Participation by Executive Director in the 2019-2021 Long Term Incentive Plan (LTIP)

ITEM 4

23

To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and for all other purposes, for the grant of performance share rights to Ms Alison Watkins, the Group Managing Director of the Company, under the Coca-Cola Amatil Limited 2019-2021 Long- Term Incentive Plan, as described in the Explanatory Notes that form part of this Notice

• f Meeting.”

An explanatory note to this item appears on pages 4-7 of the Notice of Meeting.

Coca-Cola Amatil 2019 Annual General Meeting

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ITEM 4

24 Coca-Cola Amatil 2019 Annual General Meeting

Proxy & Direct Votes For Undirected Against Total Resolution 3 524,641,993 1,024,132 9,801,495 535,467,620 % of vote 97.98% 0.19% 1.83% 73.96% of issued capital

Participation by Executive Director in the 2019-2021 Long Term Incentive Plan (LTIP)