INVESTOR PRESENTATION June 2020 PUBLIC PUBLIC 2 This - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION June 2020 PUBLIC PUBLIC 2 This - - PowerPoint PPT Presentation

1 INVESTOR PRESENTATION June 2020 PUBLIC PUBLIC 2 This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola eceks (CCI) plans, objectives, expectations and intentions and


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INVESTOR PRESENTATION

June 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

  • perations 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.

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AGENDA

Overview of CCI 1Q20 Performance Strategic Priorities & COVID-19 Financial Highlights Sustainability Appendix

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Overview of CCI

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DISCIPLINED FINANCIAL MANAGEMENT deliver stakeholder value STRONG SYSTEM ALIGNMENT relationship with TCCC PROVEN TRACK RECORD expansion & growth in emerging markets STRATEGY, EXECUTION, PEOPLE accelerate quality growth ABUNDANT POTENTIAL demographics PRESENCE IN LARGE & GROWING MARKETS NARTD* growth opportunity

*Non-alcohol ready-to-drink

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10 countries, ~400 mn people 26 production plants with 126 lines 1.5 bn UC(1) annual production capacity ~780 thousand sales points 1.3 bn UC sales volume $ 2.2 bn revenue & $ 403 mn EBITDA

KAZAKHSTAN KYRGYZSTAN TAJIKISTAN AZERBAIJAN TURKEY IRAQ JORDAN SYRIA Figures reflect FY19 numbers unless otherwise stated (1) Unit case, 1 UC equals 5,678 liters

Volume Breakdown Revenue Breakdown EBITDA Breakdown

7% 8% 23% 11% 50%

TURKEY KAZAKHSTAN PAKISTAN IRAQ OTHERS #1 #1 #2 #2 Sparkling Market Position

20% 18% 15% 47%

TURKEY KAZAKHSTAN PAKISTAN OTHERS

53% 47%

TURKEY INTERNATIONAL

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PUBLIC PUBLIC 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 1,316 mn UC

South Iraq in 2012…

11% 18%

CAGR 2005-2019 CAGR 2005-2019

19%

CAGR 2005-2019 4x 10x 12x

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Maintaining Quality Growth

13% 4% 6% 0% 18% 21% 27% 15% 17% 26% 36% 19% CAGR (2005-16) 2017 2018* 2019 Volume NSR EBITDA

2019: Continuation of quality growth algorithm

Solid Free Cash Flow

2019: Record High free cash flow

  • 642

729 727 1.079

Cumulative 2005-2015 2016 2017 2018 2019

TL million Growth

*Includes TFRS 15 adjustments

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Right Price

Regional Strategies Effective discount and trade promotion management NSR > PCE growth

Right Mix

IC Portfolio Availability Optimum price/pack architecture

IC Share ↑6 pts in Turkey

(2019 vs 2014 YE)

Right Portfolio

Portfolio expansion Portfolio innovation Portfolio diversification

Right Channel

Channel prioritization Clear channel roles &

  • bjectives

Segmented execution

Covid-19 Initiatives

Optimization of SKUs Adapting to sharp decline on IC share, on-premise channel New marketing strategies favoring Future / Home Consumption New price adjustments

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Outlet Coverage

(as of ’19)

Time in Field*

(as of ’19)

Call Completion Rate**

(as of ’19)

Strike Rate***

(as of ’19)

*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

95% 90% 65% 72%

Over 1 million coolers ~146K new placements in 4 years (as of YE19) Superior Execution: Be Available, Be Cold, Be Visible

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1Q20 Highlights

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Volume growth due to sudden slowdown in March, despite high teens volume growth in the first 2 months Contraction in number of transactions mainly due to shutdown of on-premise channel in most markets by March Net Sales Revenue (NSR) growth and 15.8% FX neutral NSR growth due to price adjustments and despite negative mix EBITDA growth leading to 41 bps margin expansion despite termination of cash designation and negative mix FCF generation despite the challenging environment in March Sharp declines in on-premise channel, capacity utilization at 60% levels, severe SKU

  • ptimization and change in consumer habits, some of which may be permanent

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Balanced price adjustments, positive product and channel mix contributed to another year of quality growth despite challenges in our geographies

EBITDA NET SALES REVENUE VOLUME

10,623 12,245

NSR 2018 2019

1,919 2,283

EBITDA 2018 2019

Volume 0.1%

1,315 1,316

Volume 2018 2019

9,550 9,804

Transactions 2018 2019

Transactions 2.7% NSR 15.3% EBITDA 19.0%

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Price adjustments, strict opex management contributed to another quarter of quality growth despite decline in number of transactions due to on-premise channel impact 2,174 2,622

NSR 1Q19 1Q20

320 397

EBITDA 1Q19 1Q20

Volume 3.8%

230 239

Volume 1Q19 1Q20

1,847 1,832

Transactions 1Q19 1Q20

Transactions (0.8)% NSR 20.6% EBITDA 23.9%

EBITDA NET SALES REVENUE VOLUME

Numbers exclude NRTD tea

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77% 8% 15%

SPARKLING 1Q20: 5.7%

Growth in all markets except Jordan & Turkmenistan Promising market share gains in Pakistan and Iraq

STILLS 1Q20: 0.9%

Cycling 14.1% growth in 1Q19 Ice Tea growth in all markets except Turkey Double digit growth in juice in Central Asia

WATER 1Q20: 3.5%

Cycling 6,3% growth in 1Q19 Continued growth in IC packages

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TURKEY INTERNATIONAL PAKISTAN KAZAKHSTAN IRAQ

Growth YoY 1Q19 2019 1Q20

  • 1.5%

1.8% 0.3%

  • 2.1%
  • 1.5%

6.6% Share in Total Volume (1Q20)

45 % 55%

Turkey International

  • 8.2%
  • 7.8%

6.5% 19.1% 13.9% 15.2%

  • 4.0%

0.8%

  • 8.6%

24% 16% 8%

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Strong sparkling growth led to positive category mix Decrease in the on-premise channel due to Covid-19 Successful market execution Successful pricing initiatives Quality growth momentum disrupted due to Covid-19 related mix changes #1 share in Sparkling

*EBITDA excluding other operating income/expense

0.3% 18%

  • 23%

4%

VOLUME NSR EBITDA*

  • excl. Cash

Designation EBITDA*

412 bps margin impact

  • f cash designation in

1Q19

1Q20 YoY Growth (%)

+4%

  • 7%

mainly due to weaker juice category

  • 6%

mainly due to our focus on more profitable packs

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Growth in all Central Asian markets except Turkmenistan Continued sparkling share gains in both Pakistan and Iraq Market price adjustments and lower prices in some raw materials led to Gross and EBITDA margin expansion #1 KZ & AZ, #2 PK & IQ Sparkling Markets 6,5% volume growth in Pakistan

*EBITDA excluding other operating income/expense

7% 22% 64%

VOLUME NSR EBITDA*

1Q20 YoY Growth (%) Coca-Cola TM grew over the average sparkling growth in every CA country (except Turkmenistan)

+7% +17%

with strong growth in juice and ice tea

+1%

mainly due to our focus on more profitable packs

  • n the back of

double digit growth

  • f TM Coca-Cola

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32% 31% 68% 69%

First 10 weeks

  • f 1Q19

First 10 weeks

  • f 1Q20

IC FC

170 197

Transactions First 10 weeks of 1Q19 First 10 weeks of 1Q20

Volume up by 16% No significant mix change Pre-COVID19

28% 19% 72% 81%

Last 2 weeks of 1Q19 Last 2 weeks of 1Q20 IC FC

60 41

Transactions Last 2 weeks of 1Q19 Last 2 weeks of 1Q20

Volume down by 31% Negative mix change Post-COVID19

Figures reflect sell-in numbers & excluding NRTD tea

Decline in on-premise channel is offset somewhat by the growth in the discounter segment

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Strategic Priorities & COVID-19

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Our Vision Values

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ONE CCI

Full-beverage portfolio Revenue Growth Management (RGM) Expand Sparkling & Stills Increase frequency Regional strategies

Accelerate Growth Win at the Point of Sale

Increase outlet coverage Increase cooler penetration Right Execution Daily E-commerce Future-proof RTM

Exercise Financial Discipline

Productivity savings Working capital improvements Healthy FCF Optimum leverage Effective FX management

Win with People

Integrated Talent Strategy Leadership Development High Performing Team Transformation to “OnePeople”

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Sustain Quality Growth Prudent capex & opex spending, DMEs frozen for 2Q Solid balance sheet and strong liquidity buffers Deliver Free Cash Flow Dynamic forecasts and scenarios Risk mitigation strategies (WC improvements) Strong counterparty risk management

PRESERVING FINANCIAL HEALTH

PROTECTING OUR PEOPLE Remote working Safety precautions Commitment for job safety Fast adaption ADAPTABILITY TO CHANGING CONSUMER HABITS On-premise shutdowns Growth in the discounters segment Shift towards online channels $3.3 million cash donation Product donations to health institutions & people in need 10.4 tons of disinfectants produced in our plants to be donated to health ministries Donations through Coca- Cola Foundation

SUPPORTING OUR COMMUNITIES SUPPLY CHAIN & PRODUCTION

No significant issue on procurement (Co2 in Iraq) Non-stop production in all

  • perations

Operational sales teams Benefit from beverage industry priveleges (permits during curfews, hiring dormitories) Over 75% of main raw materials have already been hedged for 2020 (even partially hedged for 2021) Optimized SKUs

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11% 12% 51% 30%

WATER STILLS SPARKLING NARTD

CCI Value Share Opportunity

INDUSTRY VALUE GROWTH

Source: Nielsen, Canadean and internal estimates, data as of 2019

TOTAL NARTD INDUSTRY IN CCI COUNTRIES: $14.7BN (2019)

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59% 51% 41% 36% 27% 25%

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

Teen Recruitment Opportunity!

1Based on CCI analysis for Turkey operations

Share of Immediate Consumption (IC) Packages in Sparkling

~2x higher

NSR per case1

~1.5x

higher Gross Margin

  • vs. FC1

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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 ** as of 2018

1.48 481 1.31 319 1.22 226 1.06 066 1.04 044 1.01 014 1.00 000955 55 944 44 942 42 867 67 794 94 793 93 791 91 779 79 734 34 718 18 695 95 646 46 643 43 639 39 539 39 535 35 531 31 513 13 493 93 471 71 466 66 394 94 382 82 363 63 355 55 325 25 321 21 313 13 292 92 276 76 255 55 232 32 213 13 204 04 124 24 124 24 116 16 85 85 82 82 70 70

CCI's Share NARTD CCI average: 257

NARTD per cap*

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Category Breakdown

Sparkling 71% Sparkling 85% Water 14% NRTD Tea 8% Still 7% Other 15%

2006 2019 Share of Low/No Calorie in Sparkling Volume (2019)

27% 18% 8% 6% 9% 7% 4% 3% 2% 2% 1% 0,3% North America EMEA Latin America Asia Pasific Tajikistan Turkey Azerbaijan Jordan Kazakhstan Kyrgyzstan Iraq Pakistan

Increasing Household Penetration

&

Double-digit growth in No Sugar

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Volume Breakdown Guiding principles for geographical expansion

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

Turkey 50% Pakistan 23% Kazakhstan 11% Iraq 8% Others 7%

2019

Turkey 81% International 19%

2006

Healthier Diversification

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Financial Review

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Consolidated (TL million) 2019 Change* 1Q20 Change**

Net Sales 12,245 15.3%

2,622

20.6% Gross Profit 4,207 19.3%

847

22.2% EBIT 1,521 19.9%

182

29.9% EBITDA 2,283 19.0%

397

23.9% Profit / (Loss) Before Tax 1,212 135.1%

156

571.6% Net Income/(Loss) 966 200.7%

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4,996% GP Margin 34.4% 1.2pp

32.3%

0.4pp EBIT Margin 12.4% 0.5pp

6.9%

0.5pp EBITDA Margin 18.6% 0.6pp

15.1%

0.4pp EPS*** 3.80 200.7%

0.00499

5,090%

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EBIT per UC

8,08 10,55 9,46 10,55

2018 2019 1Q19 1Q20

2,68 3,11 3,01 3,42

2018 2019 1Q19 1Q20

0,96 1,13 0,61 0,72

2018 2019 1Q19 1Q20

Consolidated (TRY), FX-Neutral Net Revenue per UC Gross Profit per UC

11.8% yoy 11.6% yoy 13.3% yoy 18.9% yoy 16.0% yoy 16.8% yoy

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Reported Margins

6,9% 15,1% 32,3%

EBIT EBITDA Gross Profit

▲2.3 pp*

*without cash designation

Margin recovery achieved due to strong margin expansion of international operations: lower raw materials higher selling prices strong topline volume growth.

▲0.4 pp ▲2.2 pp* ▲0.4 pp ▲2.3 pp* ▲0.5 pp

1Q20

12,4% 18,6% 34,4% ▲0.7 pp* ▲1.2 pp ▲0.1 pp* ▲0.6 pp ▲0.5 pp

2019

EBIT EBITDA Gross Profit

0.0 pp*

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9%(3) 50% 45%(2)

(1) As of April 2020 (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.

World Sugar Prices (London#5 Average, USD/tonne)

220 260 300 340

2019 2020 2021 Forward

1500 1600 1700 1800 1900 2000

2019 2020 2021 Forward

200 400 600 800 1000 1200

2019 2020 2021 Forward

100%(2)

Hedged Position for 2020(1)

LME Aluminium Prices (Average, USD/tonne)

77%

Resin Prices (Average, USD/tonne)

75%(3) Managing FX exposure related to raw materials...

Terminated Cash designation as of 2019 YE Using financial derivative instruments more effectively Fixing the prices with suppliers to the extent possible

Hedged Position for 2020(1) Hedged Position for 2020(1) for 2021(1) for 2021(1) for 2021(1)

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1.5 1.1 1,1

2018 2019 1Q20

9,0 11,6 9,0

2018 2019 1Q20

1Annualized sales

Net Debt (USD mn) Net Debt / EBITDA Net Interest Coverage

531 431 416

2018 2019 1Q20

Covenant > 4x

Continued deleveraging FX-Neutral: ~1.0x Increasing EBIT Lower net interest expense

Covenant < 3.25x

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1Depreciation and amortization, including right-of-use asset amortization

Totals may not foot due to rounding differences

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1

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1,7x 1,1x 1,1x Net Debt/EBITDA

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564 431 416

1Q19 FY19 1Q20 Managable repayment schedule with 3.2 years average maturity Balance sheet FX exposure is mitigated by large FX cash balances and hedges in place Low leverage provides flexibility to debt management

USD million

FX debt and FX cash are on a consolidated basis. The net FX position in individual countries may differ. Numbers do not include IFRS lease figures

Net Debt ($m) FX Position on Balance Sheet

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Low gearing ratio at 1.1x $ 1 bn available credit lines* Strong access to debt capital markets CCI’24 trading at Sovereign – 200 bps Release of $150 mio excess cash due to cancellation of cash designation Significant headroom under financial covenants Net Debt/EBITDA < 3.25 Interest Cover > 4.0 No major refinancing need until 2023

*uncommitted lines in line with the practice in Turkey

EUR 5% TRY 19% OTHERS 11% USD 66%

$467m eq. Cash

Breakdown of Consolidated Cash

2020 2021 2022 2023 2024

Maturity Profile

54% 17% 2% 7% 20%**

$849m eq. Debt*

HEDGED** 50% TRY 6% USD 28% EUR 14% PKR 2%

Breakdown of Consolidated Debt

*excluding IFRS 16 **Cross Currency Hedge and Net Investment Hedge

** $80 mio is paid as of May, 2020 from cash

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2019 9 Days 2017 15 Days Cash Conversion Cycle 2016 26 Days 2018 12 Days

7,4% 5,7% 4,5% 4,3% 3,7%

2016 2017 2018 2019 1Q20

4% 27 Days 2018 48 Days 64 Days

DSO DSI DPO

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

*Net Sales Revenue

Full Year

Net Working Capital/NSR* 27 Days 50 Days 68 Days 2019

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7,3% 5,9% 8,1% 6,3% 2016 2017 2018 2019 6.9%

  • n

average

Full Year

TL766 million CapEx in 2019 62% related to International operations 38% related to International operations

*Net Sales Revenue

CapEx / NSR*

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EBITDA Growth

Prudent CapEx Working Capital Efficiency

*Free cash flow yield based on year-end market capitalization

Free Cash Flow and Yield*

  • 44

10 46 642 729 727 1079

  • 0,3%

0,1% 0,5% 7,6% 8,2% 9,3% 11,0% 2013 2014 2015 2016 2017 2018 2019

FCF (TLmn) FCF Yield

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Organic Growth

CapEx/Sales ~6.3% (2019)

  • Capacity Expansion
  • Cold drink equipment
  • Maintenance

Optimum CapEx Allocation

Inorganic Growth

Bolt-on acquisitions Geographical expansion

  • Strategic fit
  • Value creation
  • Reasonable proximity

Selective M&A Strategy

Deleveraging

Optimum debt repayment

  • Solid balance sheet
  • Improving leverage

metrics

Debt Repayment

Shareholder Return

Sustainable dividend policy

  • Increasing payout ratio
  • Higher dividend yield

Dividends

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0,12 0,2 0,79 1,18 0,94

2015 2016 2017 2018 2019

* Amendment was made to the initial proposal of TL 450 mn due to the mandatory provision of Article 12 of Law on Mitigating of Effects of Coronavirus (COVID-19) Outbreak on Economic and Social Life and the Law on Amendment of Certain Laws (the Law), dated 17.04.2020 and numbered 7244. If there was no amendment, dividend amount would be TL 450 mn and dividend yield 4%.

Dividend per Share (TL per 100 shares)

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

2019 dividend paid in 2020 is TL 239mn* Dividend amount based on: Net distributable income Free cash flow generation CapEx and other funding needs for growth Prevailing macroeconomic conditions

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Withdrawal of 2020 Guidance due to Covid-19 environment No New Guidance due to uncertainty of Covid-19 duration and its further impacts Proactive adaptation to any necessary changes and close monitoring of every development accordingly Further information to be shared based on any sustainable improvement on our business environment

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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 1.578.000 has been listed to Central Registry Agency, with a sale purpose (December 31, 2019 - TL 1.578.000).

50,3% 27,8% 1,9% 20,1%

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

12 Members 12 of whom are non-executive 4 of whom are independent Compositon of BoD

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2002

1st Environmental Policy

2009

Signatory to the United Nations Global Compact (UNGC) 1st Sustainability Report published.

2010

Announcement

  • f “2020 Vision

and Strategic Framework”

2011

1st independent external assurance for ISAE 3000 Charter member

  • f the Climate

Change Leaders Group Turkey’s 1st F&B company in CDP Global Disclosure Leaders

2012

Top 2 in Turkey’s CDP Carbon Performance Leaders “Top 10 Energy- Saving Challenge Program” of TCCC & WWF İzmir & Mersin plants

2013

1st & 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

2014

1st and only company from Turkey in the CDP Global Water Program

2015

Joined the “BIST 50 Sustainability Index” Joined the “Euronext Vigeo Emerging 70 Index” Signatory to the “UN Women’s Empowerment Principles”

2016

Joined the “BIST 100 Sustainability Index” Joined “MSCI Global Sustainability Index” Joined “FTSE4Good Emerging Index” Among “Turkey’s CDP Climate Change Leaders”

2017

Joined the “ECPI Emerging Markets ESG Equity index” Joined the “Vigeo Eiris Best Emerging Markets Performers Ranking”

2018

“Workplace Rights Policy” updated as “Human Rights Policy”

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Risk Detection Committee Risk Detection Committee Risk Detection Committee

Sustainable Operations Steering Committee Health & Safety Steering Committee Diversity & Inclusion Advisory Board Ethics & Compliance Committee

Risk Detection Committee Audit Committee Executive Committee

Emissions Reduction Work Group Water Stewardship Work Group Sustainable Packaging Work Group Group H&S Committees Location Based H&S Committees Culture Gender Generation Group Ethics Committees Location Based Ethics Committees

Corporate Governance Committee

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ENERGY MANAGEMENT & CLIMATE PROTECTION Production Transport & Distribution Cooling Practices

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

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)

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

“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

TCCC Average: 0.39 MJ/L

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

Logistics improvements Cooler emission reductions Smarter use of technology Returnable glass bottles practices Pallet re-use practices

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REPLENISH 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)

We replenished

11 bn liters* of water, equaling 4,400 olympic swimming pools 6.7 bn liters of

water saving on

50 mn m2 of

agricultural land

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

Life Plus Environment Program: Agriculture of the Future Project Harran Night Irrigation Project

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REDUCE

PET and Glass Lightweight

REUSE

Returnable Glass Bottles

RENEW

r-PET (Recycled PET)

RECYCLE

Post-Consumer Material Collection

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

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%

Glass bottles can be used up to 8 times In 2018,

388,457 tons

  • f CO2e was avoided via

returnable glass bottle practices This equals to the amount absorbed by 32.4 million trees 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

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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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 7,800 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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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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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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Superior Execution Commercial Excellence Excellence in Supply Chain

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% CCINext Red Box module won the Most Successful Retail Channel award given by TCCC at the Global Customer & Commercial Leadership (GCCL) Awards 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 1,518 OE Projects* 781 certifications USD71 mn savings*

* (2008-2018)

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Supplier Guiding Principles Diversity and Inclusion Health and Safety

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

SGP Audit Targets for Years 2019 75% 2020 85%

Diversity and Inclusion Advisory Board “Women in Leadership” program UN Women’s Empowerment Principles CCI Women Network Gender Generation “Leaders in the Field” meetings The U30 Strategy Camp Culture “Leaders in the Field” meetings The U30 Strategy Camp 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

*Occupational Health & Safety

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Human Rights Policy…

CCI published its first Human Rights Policy in 2018, a continuation

  • f 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 4,000 suppliers

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Employee Engagement

CCI Talent Management Principles My Career Platform CCI Career Navigation Framework Talent Readiness Index (TRI) has risen from 46% to 53% in 2019..

Talent Management

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

Teamwork Passion Accountability Integrity

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BIST 50 Sustainability Index

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

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Appendix

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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 83.0 28.8 56 66% 1 684 78% Pakistan 216.6 4.7 29 48% 2 408 79% Kazakhstan 18.6 28.9 87 51% 1 162 78% Iraq 39.3 15.5 57 42% 2 147 75% Azerbaijan 10.1 18.6 45 86% 1 59 68% Jordan 10.1 9.5 42 20% 2 35 47% Turkmenistan 5.9 20.5 n.a. n.a. n.a. 23 43% Kyrgyzstan 6.4 4.1 46 70% 1 16 109% Tajikistan 9.3 3.6 18 n.a. n.a. 18 25%

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