Investor Presentation January, 2020 PUBLIC PUBLIC Forward-Looking - - PowerPoint PPT Presentation

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Investor Presentation

January, 2020

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This presentation includes forward-looking statements including, but not limited to, statements regarding Coca- Cola İçecek’s (“CCI”) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “target,” “believe” or other words of similar meaning. These forward-looking statements reflect the current views and assumptions of management and are inherently subject to significant business, economic and other risks and uncertainties. Although management believes the expectations reflected in the forward-looking statements are reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that could cause actual results to differ materially from CCI’s expectations include, without limitation: changes in CCI’s relationship with The Coca-Cola Company and its exercise of its rights under our bottler's agreements; CCI’s ability to maintain and improve its competitive position in its markets; CCI’s ability to obtain raw materials and packaging materials at reasonable prices; changes in CCI’s relationship with its significant shareholders; the level of demand for its products in its markets; fluctuations in the value of the Turkish Lira or the level of inflation in Turkey; other changes in the political or economic environment in Turkey or CCI’s other markets; adverse weather conditions during the summer months; changes in the level of tourism in Turkey; CCI’s ability to successfully implement its strategy; and other factors. Should any of these risks and uncertainties materialize, or should any of management’s underlying assumptions prove to be incorrect, CCI’s actual results from operations or financial conditions could differ materially from those described herein as anticipated, believed, estimated or expected. Forward-looking statements speak only as of this date and CCI has no obligation to update those statements to reflect changes that may occur after that date.

Forward-Looking Statements

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Agenda

Overview of CCI 2019 Volume Performance 9M19 Financial Highlights Strategic Priorities Sustainability 4 11 18 21 41 Financial Highlights 29 Appendix 60

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Agenda

Overview of CCI

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Proven track record of expansion & growth in emerging markets Presence in large and growing markets, compelling NARTD* growth opportunity in our footprint Abundant potential in demographics Strategy, Execution and People to accelerate quality growth Disciplined financial management to deliver stakeholder value Strong System alignment and unique long-term relationship with TCCC

We have the capabilities for further growth

Overview

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*Non-alcohol ready-to-drink

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We are the 6th largest bottler in the Coca-Cola System

KAZAKHSTAN KYRGYZSTAN TAJIKISTAN TURKMENISTAN AZERBAIJAN TURKEY IRAQ JORDAN SYRIA PAKISTAN

• 10 countries, ~400 mn people
• 26 production plants with 124 lines
• 1.5 bn UC(1) annual production capacity
• ~920 thousand sales points
• 1.3 bn UC sales volume
• $ 2.3 bn revenue & $ 395 mn EBITDA

47% 19% 14% 20% Turkey Pakistan Kazakhstan Others

Revenue Breakdown (2)

48% 52% Turkey International

EBITDA Breakdown (2)

49% 25% 11% 8% 7% Turkey Pakistan Kazakhstan Iraq Others

Volume Breakdown (2)

Sparkling Market Position

#1 #2 #1 #2

Figures reflect FY 2018 numbers unless otherwise stated (1) Unit case, 1 UC equals 5,678 liters (2) As of 9M19

Overview

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…with a successful track record of growth

Single country in 2005… Expanding into Central Asia and North Iraq in 2006-2007… JV in Pakistan in 2008... A regional bottler today…

318 mn UC 1,315 mn UC

19%

EBITDA

CAGR 2005-2018

18%

REVENUE

CAGR 2005-2018

12%

VOLUME

CAGR 2005-2018

9x 4x 10x

South Iraq in 2012…

Overview

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• 642

729 730

Cumulative 2005-2015 2016 2017 2018

Rising performance…

Overview

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13% 4% 6% 18% 21% 27% 17% 26% 36%

CAGR (2005-16) 2017 2018*

Volume NSR EBITDA Growth TL million 2018: Highest net revenue & EBITDA growth

• f the past 6 years

2018: Highest free cash flow

*Includes TFRS 15 adjustments

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…with the right focus

Right Price Right Mix Right Portfolio

IC Portfolio Availability Optimum price/pack architecture

IC Share ↑ 6 pts in Turkey

(9M19 vs 2014 YE) Regional Strategies Effective discount and trade promotion management

NSR > PCE growth

Portfolio expansion Portfolio innovation Portfolio diversification

Right Channel

Channel prioritization Clear channel roles & objectives Segmented execution Overview

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…and excellence in execution

Outlet Coverage (as of Sep’19) Strike Rate*** (as of Sep’19) Call Completion Rate** (as of Sep’19) Time in Field* (as of Sep’19)

79%

+4pts vs 2015

88%

+10pts vs 2015

72%

+10pts vs 2015

92%

+7pts vs 2015

Over 1 million coolers ~142K new placements in 4 years

(as of Sep’19)

Superior Execution: Be Available, Be Cold, Be Visible

*Time in Field: Percentage of time spent on the field vs. total working hours **Call Completion Rate: Percentage of realized visits vs. planned ***Strike Rate: Percentage of invoiced customers vs. planned

Overview

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Agenda

2019 Volume Performance

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2019 Consolidated Volume Highlights

0,1% 0,6% 2,7%

Volume Core Business Transactions

0,8% 2,4% 6,5%

Volume Core Business Transactions (excl NRTD Tea)

Cycling 0.6% in 4Q18 Cycling 6.3% in 2018

1Core business will relate to CCI’s business excluding non-ready-to-drink (‘NRTD’) Tea distribution 1

2019 Highlights

Volume (mn UC)

1,316

4Q19: 230 4Q19 YoY Growth 2019 YoY Growth

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Core Business Volume (mn UC)

1,207

Turkey Core Business Volume (mn UC)

554

4Q19: 99

International Volume (mn UC)

654

4Q19:104

Turkey Volume (mn UC)

662

4Q19: 203 4Q19: 126

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8% 14% 7% 71%

Category volume performance

SPARKLING STILLS WATER NRTD TEA

• Cycling 6.8% growth in

12M2018

• Growth in all markets

except Pakistan, Jordan & Turkmenistan

• Cycling 11.6% growth in

12M18

• Ice Tea growth in all

markets

• Cycling 6.0% growth

in 12M18

• Cycling -1.2% decline in

12M18 Share in total volume (12M19)

4Q: 4.9% 12M: 0.3% 12M: 4.9% 4Q: 14.5% 12M: 5.1% 4Q: 13.0% 12M: 0.1% 4Q: 9.2%

Growth yoy

2019 Highlights

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Country Volume Performance

4Q19 2019

4.9%

• 3.6%
• 15.2%

16.2%

• 4.8%

1.8%

• 1.5%
• 7.8%

13.9% 0.8%

50% 50% 23% 11% 8%

Growth YoY

2019 Highlights

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4,9% 9,7% 18,1%

Volume Core Business Transactions (excluding NRTD Tea)

Turkey: Solid Performance in 2019

2019 Highlights

1,8% 3,2% 7,1%

Volume Core Business Transactions (excluding NRTD Tea)

4Q19 YoY Growth 2019 YoY Growth

1 1

On-premise channel supported volume growth throughout 2019 Cooler placements, continued media investments and successful market execution 50% growth in Ice Tea category in 4Q19 Favorable sales mix with a higher IC share in Sparkling → +2 pp yoy increase in 2019 6% increase in Low/No Sugar in 2019 31.1% growth in Low/No Sugar in 4Q19

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11% 16% 37% 9% 14% 21%

Central Asia: Continued growth in markets

Kazakhstan Azerbaijan

4Q19 12M19

UC Volume Growth yoy

▪ Growth in all markets except Turkmenistan ▪ New year consumer promotions and successful consumer activities ▪ Strong consumer activations, cooler placements and successful market execution in Kazakhstan ▪ Double-digit growth in Kazakhstan, Azerbaijan and Tajikistan markets in 4Q19

2019 Highlights

17.4%

14.4%

4Q19 12M19 4Q19 12M19

Central Asia

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• 15%
• 5%
• 8%

1%

▪ Strong Sparkling category in Iraq with 6% growth in 4Q19 ▪ 8% growth in trademark Coca-Cola in 4Q19 in Iraq ▪ In Jordan, 7.3% growth in 4Q19 supported by new cooler placements ▪ Weak macroeconomic condition and tough competitive environment impacting the growth ▪ Trademark Coca-Cola outperformed its segment on the back of higher brand love score

Pakistan and Middle East: Challenging macro conditions

4Q19 12M19 4Q19 12M19 Pakistan Iraq

UC Volume Growth yoy 2019 Highlights

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9M19 Financial Highlights

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3Q19 Highlights

Net Sales Revenue (TL mn)

3,908

Earnings per share (TL)

2.19

9M19: 3.79

FCF (TL mn, 9M19)

895

9M18: 872

EBITDA Margin

22.3%

9M19: 10,025

• 0,1%

1,9% 16,3% 14,4%

Volume Transactions Net Sales EBITDA

• 1,0%

0,3% 6,4% 7,2%

Volume Transactions Net Sales EBITDA

excl NRTD Tea

• 3.4%

excl NRTD Tea 0.2%

3Q19 YoY Growth 9M19 YoY Growth 9M19: 20.1%

18X 3%

Volume (mn UC)

413

9M19: 1,086

9M19 Highlights

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Turkey: Sustaining quality growth

Slowdown in Sparkling due to adverse weather in 3Q19 On-premise channel grew in all categories Increased NARTD value share2 Double-digit growth in Ice Tea category Favorable sales mix with a higher IC share in Sparkling → +2 pp yoy increase in 3Q19 5% increase in Low/No Sugar in 3Q19 1,1% 1,9% 4,9% 22,9% 41,2%

Volume Volume (excl NRTD Tea) Transactions (excl NRTD Tea) Net Revenue EBITDA

3,3%

• 1,4%

2,9% 23,9% 25,2%

Volume Volume (excl NARTD Tea) Transactions (excl NARTD Tea) Net Revenue EBITDA1

Cycling

• 0.5% in

3Q18 Cycling 5.9% in 9M18

3Q19 YoY Growth 9M19 YoY Growth

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1Excluding other operating income/expense 2Source: Nielsen

9M19 Highlights

6,39 7,33 7,56 7,36 7,83 8,97 9,06 9% 15% 15% 13% 23% 22% 20%

• 03%

07% 17% 2 4 6 8 10 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 NSR per UC (TL) NSR per UC YoY Growth (%)

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Strategic Priorities

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Clear strategic framework

Strategic Priorities

Our Vision Values

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Strategic priorities to create value

Strategic Priorities

Accelerate Growth Win at the Point of Sale Exercise Financial Discipline Win with People

• Full-beverage portfolio
• Revenue Growth

Management (RGM)

• Expand Sparkling & Stills
• Increase frequency
• Regional strategies
• Increase outlet coverage
• Increase cooler penetration
• Right Execution Daily
• E-commerce
• Future-proof RTM
• Productivity savings
• Working capital

improvements

• Healthy FCF
• Optimum leverage
• Effective FX management
• Integrated Talent Strategy
• Leadership Development
• High Performing Team
• Transformation to

“OnePeople”

ONE CCI

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NARTD value growth opportunity

Strategic Priorities

CCI Value Share Opportunity

+$4bn

9% CAGR

2018- 2021E

8% 9% 51% 29%

WATER STILLS SPARKLING NARTD

INDUSTRY VALUE GROWTH

TOTAL NARTD INDUSTRY IN CCI COUNTRIES: $13BN (2018)

Source: Nielsen, Canadean and internal estimates, data as of 2018

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Lower per caps in CCI countries

NARTD per cap*

CCI's Share

CCI average: 291 Strategic Priorities

Source: TCCC and Canadean Estimates * NARTD includes sparkling soft drinks, ready-to-drink tea, energy drinks, juices, packaged water * NARTD per cap per year in terms of number of 8 ounce servings

1,428 1,176 1,0881,048 998 942 885 806 779 685 608 577 525 511 498 443 391 386 339 325 260 234 193 166 141 84 53

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More room to diversify product portfolio

27% 16% 8% 6% 7% 6% 4% 3% 2% 2% 1% 0,3% North America EMEA Latin America Asia Pacific Turkey Tajikistan Azerbaijan Jordan Kazakhstan Kyrgysztan Iraq Pakistan

Strategic Priorities

Sparkling 71%

Sparkling 85%

Water 14% NRTD Tea 9% Still 7%

Other 15% 2006

2018 Increasing Household Penetration Double-digit growth in No Sugar

&

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More room to grow…

59% 50% 40% 35% 28% 24%

Asia Pacific North America World Average Europe, Middle East and Africa Latin America CCI

Teen Recruitment Opportunity!

~2x higher

NSR per case1

~1.5x

higher Gross Margin vs. FC1

Strategic Priorities

1Based on CCI analysis for Turkey operations

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Prudent approach to geographical expansion

• Management control & full consolidation rights
• Reasonable proximity
• Complementary market dynamics
• ROIC > WACC

Strategic Priorities

Turkey 49% Pakistan 26% Kazakhstan 10% Iraq 8% Others 7% Turkey 81% International 19%

2006 2018

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Financial Highlights

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Consolidated (TL million) 2018 Change 3Q19 Change 9M19 Change Net Sales 10,623 26.6% 3,908 6.40% 10,025 16.3% Gross Profit 3,527 27.2% 1,358 8.10% 3,436 16.3% EBIT 1,269 43.8% 684 11.10% 1,435 12.0% EBITDA 1,919 35.5% 872 7.20% 2,013 14.4% Profit / (Loss) Before Tax 546 31.4% 714 331.70% 1,186 185.2% Net Income/(Loss) 321 36.1% 556 1795.40% 965 483.6% GP Margin 33.2% 0.2pp 34.7% 0.5pp 34.3% 0.0pp EBIT Margin 11.9% 1.4pp 17.5% 0.7pp 14.3% (0.6pp) EBITDA Margin 18.1% 1.2pp 22.3% 0.2pp 20.1% (0.3pp) EPS1 1.26 36.1% 2.19 1795.4% 3.79 483.6%

Summary financials

1EPS in TL per 100 shares

Numbers include TFRS15 and TFRS16 adjustments

Financial Highlights

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Improving performance per unit case

7,94 8,85

9M18 9M19

2,72 3,05

9M18 9M19

1,18 1,29

9M18 9M19

11.5% yoy 12.4% yoy 8.9% yoy

Consolidated (TL), FX-Neutral

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32 17,5% 14,3% 22,3% 20,1% 34,7% 34,3%

3Q19: Resilient margin performance

EBIT EBITDA Gross Profit EBIT EBITDA Gross Profit 0.5pp 0.2pp

3Q19 9M19

0.6pp 15,5% 12,3% 20,4% 18,1% 32,8% 32,3% EBIT EBITDA Gross Profit EBIT EBITDA Gross Profit 1.4pp

3Q19 9M19

0.8pp 0.6pp 1.0pp 1.6pp 0.7pp 0.3pp 0.0pp

1.9pp impact in 3Q19 2.0pp impact in 9M19 Year-on-year change

0.2pp

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Hedging status

World Sugar Prices (London#5 Average, USD/tonne) Resin Prices (Average, USD/tonne) LME Aluminium Prices (Average, USD/tonne) Hedged Position for 2019(1)

100%(2) 93% 97%(3)

(1) As of November 2019 (2) For non-regulated markets. Iraq, Turkmenistan and Jordan are non-regulated markets. As sugar market is regulated in other countries there is no hedging opportunity through Ldn#5. Turkmenistan sugar contracts are excluded. (3) Hedging through contracting with suppliers. 100 200 300 400 9M18 9M19 500 1000 1500 2000 9M18 9M19 500 1000 1500 9M18 9M19

✓ Cash designation in place to manage

FX impact on input costs: Hard currency cash allocation for FX- denominated raw material purchases

✓ c.90% of Turkey’s 2019 FX-

denominated raw material purchases is hedged at USD/TRY 3.95

✓ Positive impact on COGS and lower

FX gains due to designation of cash Financial Highlights

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Disciplined financial management

1,60 1,18

9M18 9M19

8,9 12,7

9M18 9M19

1Annualized sales

504 443

9M18 9M19

Covenant > 4x

Continued deleveraging FX-Neutral: ~1.16x Increasing EBIT

Covenant < 3.25x

Financial Highlights

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35 USD; 75% USD; 33% USD; 33% EUR; 23% EUR; 21% EUR; 18% 41% 43%

2017 2018 9M19 6% 21% 2% 2% 16% 53% 2019 2020 2021 2022 2023 2024

Continued focus on balance sheet FX exposure

Financial Highlights Participating cross-currency swap transaction for USD 150 mn Net investment hedging for USD 281 mn Repayment of USD 100 mn USPP (May 2018) Repayment of USD 500 mn Eurobond (October 2018) Participating cross-currency swap & Net Investment Hedging

USD 120 mn USPP USD 500 mn Eurobond USD 80 mn USPP Local Currency;

2%

Local Currency;

5%

Local Currency;

5%

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7,4% 5,7% 4,5% 2016 2017 2018 6,0% 3,8% 9M18 9M19

FCF - Improving working capital efficiency

Financial Highlights

4%

2017 15 Days Cash Conversion Cycle 2016 26 Days

26 Days 2018 47 Days 62 Days

DSO DSI DPO

30 Days 2016 47 Days 51 Days 29 Days 2017 43 Days 57 Days

2018 12 Days

*Net Sales Revenue

Full Year 9-Month Annualized

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7,3% 5,9% 8,1% 2016 2017 2018

FCF - Prudent capital expenditure

Financial Highlights

7.1%

• n

average

Full Year

• TL 858 million CapEx in 2018

✓ 62% related to International operations ✓ 38% related to Turkey Operation

*Net Sales Revenue

6,0% 5,4% 9M18 9M19

9-Month Annualized

• TL 654 million CapEx in 9M19

✓ 62% related to International operations ✓ 38% related to Turkey Operation

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EBITDA Growth

Prudent CapEx Working Capital Efficiency

Solid free cash flow generation

Financial Highlights

6% 6% 10%

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10 46 642 729 730

• 0,3%

0,1% 0,5% 7,6% 8,2% 9,4%

• 2%

0% 2% 4% 6% 8% 10%

• 100

100 200 300 400 500 600 700 800

2013 2014 2015 2016 2017 2018

FCF (TLmn) FCF Yield *Free cash flow yield based on year-end market capitalization

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Disciplined capital allocation

Financial Highlights

Organic Growth Optimum CapEx Allocation

CapEx/Sales ~6%- 7%

(2019E)

• Capacity Expansion
• Cold drink equipment
• Maintenance

Inorganic Growth Selective M&A Strategy

Bolt-on acquisitions Geographical expansion

• Strategic fit
• Value creation
• Reasonable

proximity

Deleveraging Debt Repayment

Optimum debt repayment

• Solid balance sheet
• Improving leverage

metrics

Shareholder Return Dividends

Sustainable dividend policy

• Increasing payout

ratio

• Higher dividend yield

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2019 Guidance

Sales Volume

Slight decline on a consolidated basis (previously: 1%-3% growth) Flat to slightly positive in Turkey (maintained) Low single digit decline in international operations (previously: 2%-4% growth)

Net Revenue

10%-12% on a consolidated basis (previously 16%-18%) (FX-neutral1)

EBITDA Margin

Slight improvement on a consolidated basis (maintained)

Capex/Sales

6%-7% (on a comparable basis) (previously 7%-8%)

Net Debt/EBITDA

Lower than 1.5x (maintained) (on an FX-neutral1 and organic basis)

2019 Revised Guidance

1 FX-neutral: Using constant FX rates when converting country financial statements to TL

Financial Highlights

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Sustainability

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Note: AG Anadolu Grubu Holding A.Ş. is the ultimate controlling party of CCI. AG Anadolu Grubu Holding A.Ş. holds 43% and Anheuser Busch InBev SA/NV holds 24% of Anadolu Efes’ share capital. TCCC holds 20.1% of CCI’s outstanding share capital (through TCCEC). * Özgörkey Holding A.Ş. shares with a nominal value of TL 1.753.000 has been listed to Central Registry Agency, with a sale purpose (December 31, 2018 - TL 433.000).

27,7% 2,0% 20,1% 50,3%

Anadolu Efes Biracılık ve Malt Sanayi A.Ş. (& its Subsidiaries) The Coca-Cola Export Corporation ("TCCEC") Özgörkey Holding A.Ş.* Free Float and Other

SHAREHOLDER STRUCTURE & COMPOSITION OF THE BOARD OF DIRECTORS

Composition of the BoD 12 Members 12 of whom are non-executive 4 of whom are independent

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Sustainability Milestones

1st Environmental Policy Announcement of “2020 Vision and Strategic Framework” Signatory to the United Nations Global Compact (UNGC) 1st Sustainability Report published

2009 2002 2011 2010 2012 2014 2013 2015 2016 2017 2018

1st independent external assurance for ISAE 3000 Charter member of the Climate Change Leaders Group Turkey’s 1st F&B company in CDP Global Disclosure Leaders Top 2 in Turkey’s CDP Carbon Performance Leaders Izmir and Mersin plants completed the “Top 10 Energy-Saving Challenge Program” of TCCC and the WWF 1st and only company from Turkey and within TCCS in the UNGC 100 Index New “Code of Ethics”, “Workplace Rights Policy” and “Ethics Service” Among Carbon Disclosure and Performance Leaders in CDP Turkey 100 CCI Turkey received “Gender Equality Certification” from KAGIDER 1st and only company from Turkey in the CDP Global Water Program Joined the “BIST 50 Sustainability Index” Joined the “Euronext Vigeo Emerging 70 Index” Signatory to the “UN Women’s Empowerment Principles” Joined the “BIST 100 Sustainability Index” Joined “MSCI Global Sustainability Index” Joined “FTSE4Good Emerging Index” Among “Turkey’s CDP Climate Change Leaders” Joined the “ECPI Emerging Markets ESG Equity index” Joined the “Vigeo Eiris Best Emerging Markets Performers Ranking” “Workplace Rights Policy” updated as “Human Rights Policy”

OUR SUSTAINABILITY JOURNEY

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ESG ORGANIZATION IN CCI

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OUR SUSTAINABILITY FOCUS

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OUR SUSTAINABLE DEVELOPMENT GOALS

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0,26 0,36 0,45 0,35 0,36 0,46

ENVIRONMENTAL FOOTPRINT

ENERGY MANAGEMENT & CLIMATE PROTECTION

With our Energy Management Device (EMD) equipped cold drink equipments, we saved approximately 511.5

million kWh electricity and

achieved 86,550 tons of CO2 emissions reduction in 6 countries since 2009

Core Energy Usage Ratio (MJ/L) (2018)

225k tons of CO2 emissions reductions in 6 countries, equaling to the amount 18.5 million trees can annually extract

We are able to reduce energy consumption by 42% with EMD equipped coolers

Production Transport & Distribution Cooling Practices

“Route Optimization Project” Road Net program reduced mileage travelled by 1.35 million kilometers, leading approximately to 1,400 tons of less GHG emissions and a fuel savings of $650K every year since 2016 Logistics improvements Cooler emission reductions Smarter use of technology Returnable glass bottles practices Pallet re-use practices

TCCC Average: 0.39 MJ/L

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WATER MANAGEMENT

REPLENISH

We replenished 11 bn liters* of water, equaling 4400 olympic swimming pools Life Plus Environment Program:

• Agriculture of the Future Project
• Harran Night Irrigation Project

6.7 bn liters of water saving on 50 mn m2 of agricultural land

REDUCE

Over 1 Million m3 of saving in 6 countries of operation over the last 3 years

1,55 1,52 1,54 1,64 2,05 1,64

Turkey Jordan Kazakhstan Azerbaijan Pakistan Kyrgyzstan TCCC Average: 1.89 L/L

Water Usage Ratio (L/L)

REUSE

We recycle and reuse 691,025 m3 of the water in

• ur production processes

46 153 477 537 691

2014 2015 2016 2017 2018

Recycled and Reused Water (000 m3)

*Reflecting 6 countries of operation within the scope of Sustainability Report

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Implementing lightweight programs since 2010 in Turkey, Kazakhstan, Azerbaijan and Kyrgyzstan 1,111 tons of resin and 2,532 tons of glass were saved with our lightweight practices in 2018 Tests started in 2018 3 phases of testing completed at all plants in Turkey Planning to increase current r-PET ratio of c.6% Working to develop and increase r-PET supplier capacity in CCI countries Cross-functional Recycling Task Force established in Turkey and Central Asia Teaming up with TCCC, local communities, NGOs, industry peers and consumers Authorized business partner, Çevko (Green Dot) Foundation Glass bottles can be used up to 8 times In 2018, 388,457 tons of CO2e was avoided via returnable glass bottle practices This equals to the amount absorbed by 32.4 million trees

REDUCE

PET and Glass Lightweight

SUSTAINABLE PACKAGING

REUSE

Returnable Glass Bottles

RENEW

r-PET (Recycled PET)

RECYCLE

Post-Consumer Material Collection

2.5 lt Fanta 2.5 lt Coca- Cola 1 lt Coca- Cola & Fanta 1.5 lt Coca- Cola & Fanta 2008 2018

Reduction by Lightweight Implementations (Turkey)

• 8.3%
• 4.8%
• 5.6%
• 3.3%

37% 38% 40% 42% 44% 48% 52% 54% 56% 2010 2011 2012 2013 2014 2015 2016 2017 2018

Post-consumer packaging recycling rate by years (Turkey)

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COMMUNITY

WOMEN EMPOWERMENT

We have been a signatory to the Women’s Empowerment Principles (WEP) since March 15

The Coca-Cola Belestery Program providing microfinance opportunities to disadvantaged women in Pakistan The Zarya Project trained 2,000 women in Kazakhstan to improve their business skills My Sister Program trained over 10,000 women and 500 refugees in Turkey UNDP Women’s Empowerment Program trained 1,300 women in Azerbaijan since 2017

YOUTH EMPOWERMENT

We reached almost 350,000 young people with our projects in 2018

~60% of the population in CCI geography is below 30 years of age

The Olympic Moves Program

100,000 youngsters, 4 cities, 4 branches in Azerbaijan

Schools Renovation Project

5 schools in Hilla, Iraq with more than 5,000 students were renovated 200,000 children

from 7800 schools Coca-Cola Football Tournaments

(Kazakhstan, Azerbaijan, Iraq)

3.2.1 Move!

(Turkey, Kazakhstan)

Award-winning program, fostering students’ physical and personal development through sports and group activities

131*

public schools

• ver 125K*

youngsters

*2018, Turkey

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COMMUNITY

WATER STEWARDSHIP

We attach particular importance to water related issues

Clean Irrigation Canal A canal of 9 kilometers long that can irrigate about 3,000 acres was constructed in Hilla, Iraq Paani Safe Water Initiative

44%* of the total population in Pakistan

has no access to safe drinking water; 33%**

• f deaths are due to water borne diseases

*Pakistan Council of Research in Water Resources (PCRWR) **Pakistan’s Waters at Risk Report

Launched in 2015, Paani Initiative provided clean water to more than 900,000 people with 25 plants across Pakistan

WASTE MANAGEMENT

Temiz Olkem project (Azerbaijan) Raising awareness on plastic collection

Focus

• n water

stress areas

Increasing recycling rates and transition to a circular economy is a priority focus area

Pakistan Without Waste Aims to address plastic pollution in Pakistan, in collaboration with WWF-Pakistan and ECO*

*Environmental Consultancies &Options

‘Kollekt’ recycling application In collaboration with Coca-Cola Turkey Sourcewater Vulnerability Assessment (SVA) and Sourcewater Protection Plan (SWPP) conducted by 3rd party firms for each plant Measures for Water scarcity

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CONSUMER WELL-BEING

OFFERING MORE CHOICES

Well-diversified product portfolio Increasing focus on Low/No calorie Expansion in Stills Innovation

ZERO

unconformities were found in the food safety and quality audits

All CCI plants obtained Food Safety System Certification

FSSC 22000 Standard

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CUSTOMER VALUE

Superior Execution Commercial Excellence

CCINext Red Box module won the “Most Successful Retail Channel” award given by TCCC at the Global Customer & Commercial Leadership (GCCL) Awards

Excellence in Supply Chain

Operational Excellence (OE) with the long-term intention of meticulously improving our business processes and systems The OE Model is based on Lean Six Sigma methodologies and applied to all company functions

1518 OE Projects* 781 certifications

USD71 mn savings*

We are investing in developing our people and technologies to provide the best experience for our business partners; customers and distributors and win with the customer Satisfaction Surveys CCI Customer Interaction Center Joint Business Plan Meetings CCI Turkey’s 2018 distributor satisfaction survey score was up by

5 points reaching 91%

* (2008-2018)

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HUMAN RIGHTS

Supplier Guiding Principles

Supplier Guiding Principles (SGP) determine the social, environmental, ethical and economic minimums TCCS expect from their suppliers.

Diversity and Inclusion Health and Safety

SGP Audit Targets for Years 2019 75% 2020 85%

Health and safety issues managed through the Coca-Cola Operating Requirements (KORE) CCI improved its Safety Maturity Index (SMI) score by +5% in 2018

30% increase in workplace safety

training time provided to employees vs. 2017

53,200 human-hours of OHS*

training to our employees Diversity and Inclusion Advisory Board Gender

• “Women in Leadership” program
• UN Women’s Empowerment Principles
• CCI Women Network

Generation

• “Leaders in the Field” meetings
• The U30 Strategy Camp

Culture

• “One team” summits

*Occupational Health & Safety

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HUMAN RIGHTS

Human Rights Policy… CCI published its first Human Rights Policy in 2018, a continuation of the existing CCI Workplace Rights Policy Integrating human rights and workplace rights into all of our practices, corporate values, and sustainability strategy …integrated to our practices… …affecting various stakeholders Human rights trainings targeting CCI employees & Additional 30,000 people through our 4000 suppliers

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HUMAN CAPITAL

Passion Accountability Teamwork Integrity

• CCI Talent Management Principles
• My Career Platform
• CCI Career Navigation Framework

Talent Readiness Index (TRI) has risen from 46% to 53% in 2018

Talent Management

• “Leadership in Field” program
• “Value Play Shop” program
• CCI Employee Engagement Surveys

Employee Engagement

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CCI IS INCLUDED IN LEADING SUSTAINABILITY INDICES

BIST 50 Sustainability Index

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ON OUR AGENDA… 2030 Targets to be released Integrated Report Science Based Targets Initiatives CEO Water Mandate Bloomberg Gender-Equality Index

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BACK-UP – COMMUNITY SNAPSHOT

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Agenda

Appendix

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Medium Term Guidance

Volume Growth

4%-6% (CAGR)

Net Revenue Growth (FX-Neutral)

10%-12% (CAGR)

EBITDA Margin Slight improvement Capex/Sales 7%-8%1 Net Debt/EBITDA Lower than 1.5x2

Medium Term (2018-2020)

1 Comparable 2 Organic and FX-neutral

Financial Highlights

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Dividends

• Record high dividends in 2018
• A total of TL 580 million in dividends in the last 4 years
• TL 300 million paid in 2018
• Dividend amount based on:

✓ Net distributable income ✓ Free cash flow generation ✓ CapEx and other funding needs for growth ✓ Prevailing macroeconomic conditions

0,12 0,2 0,79 1,18

2015 2016 2017 2018

Dividend Yield: 0.3% Dividend Yield: 0.5% Dividend Yield: 2.1% Dividend Yield: 4.3%

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Population (mn)(1) GDP per cap, PPP (USD 000)

(2)

Per capita NARTD consumption (L)

(3)

CCI's Market Share in Sparkling (4) CCI's Market Position in Sparkling Capacity (mn UC) Capacity Utilization Rate Turkey 82,0 28,3 58 65% 1 684 78% Pakistan 201,0 5,7 27 42% 2 408 79% Kazakhstan 18,5 27,5 79 51% 1 162 78% Iraq 39,8 16,9 51 43% 2 147 75% Azerbaijan 9,9 18 37 74% 1 59 68% Jordan 9,9 9,4 45 24% 2 35 47% Turkmenistan 5,8 19,5 28 n.a. n.a. 23 43% Kyrgyzstan 6,4 3,8 37 69% 1 16 109% Tajikistan 9,1 3,4 16 n.a. n.a. 18 25%

Country data - 2018

Source: (1,2) IMF World Economic Outlook (3) CCI and TCCC estimates (4) Nielsen, Canadean

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CCI Investor Relations Tel : +90 216 528 4000 Fax : +90 216 510 7010 CCI-IR@cci.com.tr www.cci.com.tr