investor overview april 2017 - the coca-cola company · coca-cola zero / no sugar relaunch small...

Investor OverviewApril 2017

The following presentation may include certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule is posted on the Company's website

at www.coca-colacompany.com (in the “Investors” section) which reconciles our results as reported under Generally Accepted Accounting Principles and the non-GAAP financial measures included in

the following presentation.

This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,”

“estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and

uncertainties that could cause actual results to differ materially from The Coca-Cola Company’s historical experience and our present expectations or projections. These risks include, but are not limited to, obesity

concerns; water scarcity and poor quality; evolving consumer preferences; increased competition and capabilities in the marketplace; product safety and quality concerns; perceived negative health consequences

of certain ingredients, such as non-nutritive sweeteners and biotechnology-derived substances, and of other substances present in our beverage products or packaging materials; an inability to be successful in our

innovation activities; increased demand for food products and decreased agricultural productivity; changes in the retail landscape or the loss of key retail or foodservice customers; an inability to expand operations

in emerging and developing markets; fluctuations in foreign currency exchange rates; interest rate increases; an inability to maintain good relationships with our bottling partners; a deterioration in our bottling

partners' financial condition; increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters; increased or new indirect taxes in the United States or in one or more other major

markets; increased cost, disruption of supply or shortage of energy or fuels; increased cost, disruption of supply or shortage of ingredients, other raw materials or packaging materials; changes in laws and

regulations relating to beverage containers and packaging; significant additional labeling or warning requirements or limitations on the marketing or sale of our products; an inability to protect our information

systems against service interruption, misappropriation of data or breaches of security; unfavorable general economic conditions in the United States; unfavorable economic and political conditions in international

markets; litigation or legal proceedings; failure to adequately protect, or disputes relating to, trademarks, formulae and other intellectual property rights; adverse weather conditions; climate change; damage to our

brand image and corporate reputation from negative publicity, even if unwarranted, related to product safety or quality, human and workplace rights, obesity or other issues; changes in, or failure to comply with, the

laws and regulations applicable to our products or our business operations; changes in accounting standards; an inability to achieve our overall long-term growth objectives; deterioration of global credit market

conditions; default by or failure of one or more of our counterparty financial institutions; an inability to timely implement our previously announced actions to reinvigorate growth, or to realize the economic benefits

we anticipate from these actions; failure to realize a significant portion of the anticipated benefits of our strategic relationship with Monster Beverage Corporation; an inability to renew collective bargaining

agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages or labor unrest; future impairment charges; multi-employer plan withdrawal liabilities in the future; an inability to

successfully integrate and manage our Company-owned or -controlled bottling operations; an inability to successfully manage our refranchising activities; an inability to successfully manage the possible negative

consequences of our productivity initiatives; an inability to attract or retain a highly skilled workforce; global or regional catastrophic events; and other risks discussed in our Company’s filings with the Securities and

Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2016. You should not place undue reliance on forward-looking statements, which speak only as of the

date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements.

2

Reconciliation to U.S. GAAP Financial Information

Forward-Looking Statements

• Accelerating a consumer-centric brand portfolio

• Reducing sugar footprint

• Driving top-line growth and operating margin expansion

Segmented revenue growth strategies

Delivering productivity

Implementing a new operating model

• Leading a system of strong aligned partners

We Are Transforming Our Company

3

4

Laying the Foundation

Looking Forward

Financial Performance

We Are the World’s Leading Nonalcoholic Beverage Company

5

2016 net revenue

$42Bmarkets

200+brands

500+

We Compete in an Attractive Industry

6

Industry Retail Value Growth

+$100B4%

CAGR

+$110B4%

CAGR

Expected Value Growth by Category

+0.1

2014 – 16 2017 – 19

$31SSD

Water

Value-Added Dairy

Energy

Juice & Juice Drinks

Other NARTD

RTD Tea

Sports

RTD Coffee

CAGRIncremental Value Growth through 2019 ($B)

3-4%

5-7%

4-6%

6-8%

2-3%

4-5%

3-5%

3-5%

2-4%

Source: Internal EstimatesNote: Expected industry growth for nonalcoholic ready-to-drink, excludes white milk and bulk water

• 24 Million

Customer Outlets

• 250 Bottling Partners

• 16 Million Cold

Drink Assets

We Have a Set of Strong Assets

DYNAMICBRAND PORTFOLIO

GREATMARKETING

SUPERIOREXECUTION

7

• 21 Billion-Dollar Brands

• #1 Share Position in:

• Total NARTD

• Sparkling Soft Drinks

• Juice & Dairy

• Water & Sports

• RTD Coffee & Tea

• Quality

• Quantity

• Strategy

Beginning in 2014, We Aligned Around a Set of Focused Actions to Drive Our Transformation

8

Streamline and simplify

Drive efficiency through aggressive productivity

Focus on revenue through segmented market roles

Disciplined brand and growth investments

Focus on core business model

Revitalized

• Organizational Capability and Leadership Structure

• Brands

• Portfolio

• Bottling System

• Lower Cost Base

• Marketing Communication

Strategic Actions

Our Actions Drove Accelerated Top-Line Growth in Our Core Business…

9

3.2% 3.1%

2.6%

3%

5%4%

2014 2015 2016

PCE Core Business Organic Revenues*

Incremental

investments & focus

on revenue began in

mid 2014

Source for Personal Consumption Expenditure (“PCE”): IHS

* Non-GAAP

…Even During a Slower Economic Environment

* Organic revenues (non-GAAP)** Comparable currency neutral income before income taxes (structurally adjusted) (non-GAAP)

In 2016, We Delivered Growth and Operating Margin Improvement…

10

Value Share

Core Business Revenues*

Consolidated Revenues* +3%

+4%

Profit** +8%

…But Accelerated Underlying Performance Has Been Offset by Currency and Structural Headwinds

11

2014 2015 2016

Comparable Currency Neutral Income Before

Income Taxes (Structurally Adjusted) Growth5% 6% 8%

• Foreign Currency Impact* (7)% (8)% (9)%

• Structural Impact* (2)% (1)% (3)%

Comparable EPS $2.04 $2.00 $1.91

Comparable EPS Growth (2)% (2)% (4)%

Underlying

Profit Growth

Accelerating

Notes: Comparable currency neutral income before income taxes (structurally adjusted) and comparable EPS are non-GAAP measures. In all years presented, EPS growth included 1% of benefit from net share repurchases.* Impact to comparable income before income taxes

Currency &

Structural

Impact

12


Looking Forward


We Have a Clear Value Creation Model…

13

Shared Value

Pervasive Distribution

System Investment

Consumer-CentricBrands

GROWTH

Build brands that

people love

Get those brands

everywhere that is

appropriate

Success in the other

three attracts more

money into the cycle

Company, bottlers,

customers,

community

…But the Landscape Is Changing Around Us

14

Shared Value

Pervasive Distribution

System Investment

Consumer-CentricBrands

GROWTH

Therefore, We Are Adapting to the Changing Landscape

15

Growth Driver Challenge Imperative

Consumer-Centric

Brands

Changing preferences on naturalness, sugar,

and functionality

Accelerate growth of our consumer-centric

brand portfolio

Reshape growth equation to drive revenue

Pervasive

Distribution

Evolving consumption and shopper patternsStrengthen our system for enduring

executional advantage

Digital advancements impact consumers,

customers, and our internal operations

Digitize the enterprise to accelerate growth

and remove cost

Shared Value

Divergence between US$ EPS and currency

neutral PBT growthGenerate positive US$ EPS growth

Importance of social licenseMaintain our license, as it underpins

everything we do in 200+ markets

System InvestmentSourcing of system resources for efficiency

and growth prospects

Free up resources internally and unlock the

power of our people

Our Strategic Priorities in 2017

16

Making the Right Choices and Investing for Growth

Digitize the Enterprise –‘Click’s Reach

of Desire’

AccelerateGrowth of

Consumer-CentricBrand Portfolio

DriveRevenueGrowth

Strengthen Our

System

Unlock the Power

of Our People

17

Accelerate Growth of Consumer-Centric Brand Portfolio

Drive Revenue Growth

Strengthen Our System

Digitize the Enterprise

Unlock the Power of Our People

RTDCoffee

RTDTea

~15%

We Are Shifting to a Category Cluster Model to Drive Growth Across Our Total Portfolio

18

Source: Internal Estimates

* Energy brands are owned by Monster Beverage Corporation, in which we have a minority investment

** Juice includes 100% Juice / Nectars and Juice Drinks

*** Fairlife and Core Power are brands owned by companies in which we have investments and distributed under agreements

CA

TE

GO

RY

<10% ~15% ~15%>50%

AF

FO

RD

AB

LE

PR

EM

IUM

EX

AM

PL

ES

FR

OM

OU

R P

OR

TF

OL

IO

Consumer-

Centric Brand

Portfolio

DairyPlant Based SportsWater

Enhanced WaterSSD Energy* Juice**

KO VALUE

SHARE

***

We Grow Our Portfolio in Multiple Ways

19

Consumer-

Centric Brand

Portfolio

Innovate Locally

Expanding smartwaterto 20 markets in 2017

Scale Globally Drive M&A

500+ new products launched in 2016…

…500+ more plannedin 2017

Expanding VEB* globally…

starting in Asia

* VEB stands for Venturing & Emerging Brands – a separate operating unit that started within North America to focus on driving our growth in small but emerging brands

We Have Strong Sparkling Marketing Plans and Investments in 2017

20

FlavorInnovation

‘Taste the Feeling’

Coca-ColaZero / No Sugar

Relaunch

Small Single-

Serve Packs

(Mini PET bottle

& Mini Can)

Reformulation

New Bottle

New Campaign,

New Visual Identity

Reformulation +

Local Activation

Premium

SSDs

Consumer-

Centric Brand

Portfolio

Our Approach for Added Sugar Has Evolved

21

Consumer-

Centric Brand

Portfolio

Drive sustainable, profitable

growth of our brands

Encourage and enable

consumers to control their

intake of added sugar

from beverages

• Reduce sugar

• Evolve recipes

• New and different drinks

• Smaller packages

• Accessible information

• No advertising targeted to children under 12

INSIDETHE

BOTTLE

OUTSIDETHE

BOTTLE

Taking More and Bolder Action in 2017 to Reduce Sugar Footprint

22

Focus on Zeros

Reformulate to Reduce Sugar

Drive Small Packs

Downsize Select Single-Serve Packs

Accelerate Portfolio Expansion of Low / No Added-Sugar Drinks

1

2

3

4

5

Global Rollout of

Coca-Cola Zero Sugar

Affordable

Small Sparkling

Package (ASSP)

500+ now in pipeline

2X previous number

Drive

Revenue

Growth

Consumer-

Centric Brand

Portfolio

Key Business Actions

Building Out a Portfolio for Every Moment

23

Exponential Growth Opportunity Within WHO Guidelines

A day…

Drive

Revenue

Growth

Consumer-

Centric Brand

Portfolio

We support the

WHO added sugar

guidelines of 10%

limit of total calorie

intake per day

We Drive Revenue of Our Consumer-Centric Brands Through Revenue Growth Strategies

24

Drive

Revenue

Growth

Volume

GrowthTransactions*

Incidence**

Revenue Growth

Price/Mix

Value Share

• The ultimate objective is to grow

the franchise:

Incidence

Transactions

Value share

• Segmentation of markets matters:

Developed = more price/mix

Emerging = more volume

* A “transaction” is a unit of measure that represents an individual consumer purchase of our product, irrespective of product size or price

** “Incidence” is a concentrate / beverage base pricing mechanism whereby The Coca-Cola Company’s concentrate / beverage base revenue is determined as a percentage of the bottler’s net sales revenue

Building Segmented Opportunities Across and Within Markets

25

Drive

Revenue

GrowthA

FF

OR

DA

BL

EP

RE

MIU

M

North America

Emerging Markets Developed Markets

China

RE

LA

TIV

E A

FF

OR

DA

BIL

ITY

, M

AR

GIN

Balancing Relative Price Points With Profitable Growth Across the Portfolio

Sparkling Soft Drinks Continue to Grow, But the Composition of Growth Has Changed

26

Developed Developing Emerging

Volume Price/Mix

Average for2012-2015

2016

Volume Price/Mix

Source: Internal Estimates

Global Sparkling Industry Value Growth 2016 Value Growth by Market Type

3%

Volume Tied to Macros and Choices

3-4%

2%

4%5%

Total Total

Drive

Revenue

Growth

Accelerate Growth of Consumer-Centric Brand Portfolio

Drive Revenue Growth

Strengthen Our System

Digitize the Enterprise

Unlock the Power of Our People

Refranchising Will Drive Local Market Performance

28

~50% OF OUR BUSINESS IN MOTION*

* As measured by 2015 Coca-Cola system revenue

Better System Alignment, Synergies, Improved Customer and Consumer Attention

COMPLETED COMPLETEDExpected Close

MAJORITY COMPLETED

21st Century Beverage Partnership Model

Coca-Cola European Partners

Coca-Cola Beverages Africa #1 / #2

2-Bottler Strategy for Mainland China

Coca-Cola Bottlers Japan Inc.

NORTH AMERICAEUROPE AFRICACHINA JAPAN

COMPLETED / 2017 U.S. BY YE 2017

Strengthen

Our System

Post Transformation, We Will Look Very Different than We Do Today

29

Strengthen

Our System

*Illustrative example using 2016 performance and adjusting to remove transactions to refranchise certain Company-owned bottling operations in North America, Germany, China, and South Africa

KO

IndependentBottlers

Independent Bottlers Getting Bigger…

Volume Split*

KO

IndependentBottlers

…As We Transfer Employees

Employees*

Transfer to Independent Bottling Partners

Approx. Equal Split Between Core and BIG Operations

15%3%

85%97%

2016 Adjusted

100K

39K

61K

2016 Adjusted

Focusing on Productivity as a System

30

INVESTING + BUILDING CAPABILITY

Strengthen

Our System

Design To Cost

Collaborative Procurement

Route To Market

Marketing Productivity

Digitizing the Enterprise

31

Digitize the

Enterprise

Digitizing TO GROW with Consumers & Customers

Common Enablers

Digitizing INTERNALLY to Be Faster & More Engaging

DIGITAL AS A CRITICAL ENABLER OF GROWTH AND PRODUCTIVITY

Driving Change Through a New Leaner, More Agile Operating Model to Enable the Growth Strategy

32

• Externally focused

• Empowered

• Fast, 1.0, 2.0…

• “Smart” risks

• Accountable, performance driven

Our Growth Culture

• Local business units drive growth

‒ Business models designed to win in each category

‒ Performance enablement system

• Focused, lean corporate

‒ Few strategic initiatives, policy, governance

‒ Upweight category approach, innovation and digital

• Deepen enabling services to drive

simplification and associate experience

Our Operating Model

Also Increases Financial Flexibility for 2018

Looking Forward, Our Growth Model Balances Top-Line Growth and Margin Expansion

33

• Grow faster than industry

• Benefit from category mix

• Smart choices

• Manage category mix

• Leverage category scale longer term

Revenue Gross Margin

• Leverage scale in marketing

• Drive OpEx leverage

Operating Margin


Looking Forward


20K 20K

80K

19K

2016 Adjusted*

We Are Simplifying Our Business and Returning to Our Core Through Refranchising

35

BIG

Core

Reducing complexity…

Employees

52%

48%Core**

BIG

$41.9B

2016

92%

Core**

BIG

8%

Net Revenue

…as core becomes more than 90% of net revenue

$28.4B

Adjusted*

* Illustrative example using 2016 performance and adjusting to remove transactions to refranchise certain Company-owned bottling operations in North America, Germany, China, and South Africa

** Core represents the Company’s consolidated operations excluding Company-owned bottling operations

We Have Made Progress Returning to Our Core

36

2016 vs. 2015

Net Revenues*

Operating Margin*

Intangible Assets**

Net PP&E

CapEx

$41.9B

23.8%

$21.1B

$10.6B

$2.3B

$(2.4)B

+0.4%

$(3.0)B

$(1.9)B

$(0.3)B

Key Drivers

• Refranchising activities reduced

revenue and operating capital:

– North America

– Germany

– Africa

• Underlying performance driving

margin expansion

* Comparable (non-GAAP)

** Intangible Assets is composed of Trademarks With Indefinite Lives, Bottlers' Franchise Rights With Indefinite Lives, Goodwill, and Other Intangible Assets

In 2017, EPS Will Be Impacted as We Sell Profitable Businesses

37* Comparable currency neutral income before income taxes (structurally adjusted) (non-GAAP)

** Comparable (non-GAAP)

First Quarter 2017 Outlook

-1% to -2%

-3% to -4%

• 2 fewer days vs 1Q16

• Easter shift into 2Q17

• Year-over-year increase in

interest expense will skew

heavily to 1H17

Structural

Currency

Underlying Performance*

EPS**

Full Year 2017 Outlook

-5% to -6%

-3% to -4%

+7% to +8%

-1% to -4%

2017 EPS Will Also Be Impacted by Currency and a Change in Our Underlying Tax Rate

38

Start - 2016 EPS(Comparable)

Underlying PBT Growth PBT Currency PBT Structural Items Effective Tax Rate Change Share Repurchases End - 2017 EPS(Comparable)

2016 EPS** Underlying

PBT Growth***

Structural

Items on PBT

Currency

on PBT

Underlying

Effective

Tax Rate*

Net Share

Repurchases*2017 EPS**

$1.91

7% to 8% (3%) to (4%)

Rate Change:

22.5% 24%

Approx. $2B

(5%) to (6%)

Approx. 3%

Growth in

Organic

Revenues*

Note: Chart is not to scale and is presented for illustrative purposes only.

*Non-GAAP

**Comparable (non-GAAP)

***Represents comparable currency neutral income before income taxes (structurally adjusted) (non-GAAP) 2017 growth outlook

(1%) to (4%)

* Includes transactions to refranchise certain Company-owned bottling operations in North America, Germany, China, and South Africa.

** Comparable (Non-GAAP)

*** Depreciation and amortization would be adjusted by approximately the same percentage as capex

**** Non-GAAP

Refranchising Will Result in Higher Margins…

39

2016 ADJUSTED

Net Revenues**

Gross Margin**

Operating Margin**

CapEx***

FCF Margin****

$41.9B

60%

24%

$2.3B

16%

$28.4B

68%

33%

$1.3B

~+700bps

Illustrative example using 2016 performance and adjusting to remove certain bottler transactions*

…And Higher Returns

40

* ROIC = comparable NOPAT / Five Quarter Average of Invested Capital; ROIC is a non-GAAP measure

** Invested capital is calculated using the following balance sheet line-items as of 12/31/15 and 12/31/16: Total Equity + Long-Term Debt + Current maturities of long-term debt + Loans and notes payable - Total Cash, Cash Equivalents and Short-Term Investments - Marketable securities

*** Represents estimated impact to Invested Capital and estimated cash proceeds from refranchising (specifically, North America and China refranchising). Assumes remainder of North America transactions are structured either as cash payments for tangible assets and sub-bottling payments for intangible assets or as a direct sale for cash.

Considerations Going Forward

• CCR asset base

• Transaction with Arca Continental

• China transaction

Updates During 2016

• CCR asset base

• CCEP

• CCBA

ROIC*

Cash

Proceeds

Invested

Capital**

2015

17%

$0.3B

$50B

2016

17%

$0.9B

$47B

2017

$5B***

$7 to $8B***Down

Post Refranchising, We Expect Accelerated Financial Performance

41

• Greater confidence to deliver our long-term growth objectives

• Scaled bottlers in Western Europe, Japan, China, and Africa

• North America set up for long-term growth

Strong Record of Returning Cash to Shareowners

42* Cumulative dividends and net share repurchases 2012 to 2016

** Calculated using annual dividend of $1.48 and closing stock price of $42.67 as of April 6, 2017

3.5%Dividend

Yield**55Consecutive

Years of Annual Dividend Increases

Over

$40Bof Value

Returned to Shareowners*

43

Operating Segment

Overviews

Operating Segment Overview

44Note: Percentages in the Net Revenue pie charts were calculated excluding amounts for Corporate and Eliminations. Percentages in the Operating Income pie chart were calculated excluding amounts for Corporate.

* Illustrative example using 2016 performance and adjusting to remove transactions to refranchise certain Company-owned bottling operations in North America, Germany, China, and South Africa

36%

19%

25%

21%

-1%

16%

8%

22%

11%

43%

2016

Unit Case Volume – 29.3MM UCs Net Revenue – $41.9B Operating Income – $8.6B

29%

28%

20%

23%

25%

13%

35%

19%

8%

Ad

jus

ted

* Unit Case Volume – 29.3MM UCs Net Revenue – $28.4B Operating Income – $8.7B

29%

28%

20%

23%35%

19%

25%

21%

0% (BIG)

North America Latin AmericaEurope, Middle East

and AfricaAsia Pacific

Bottling Investments

Group

North America

45

OVERVIEW

KEY MARKETS

PORTFOLIO (2016 unit case volume)

% of 2016

Unit Case Volume

2016 Unit Case

Volume Growth

United

States94% 2%

Canada 6% -3%

Total 100% 1%

• Oldest, “flagship” market

• Solid KO leadership across majority of NARTD category clusters

• In addition to the “traditional” concentrate business, segment also contains Fountain and Minute Maid juice businesses

• Home to 12 of our 21 billion-dollar brands

63%

3%

12%

16%

6%

Value Share Position*

SSD #1

Energy #1

Juice / Dairy / Plant-Based #1

Water / Enhanced Water / Sports #2

RTD Coffee / RTD Tea #3

FINANCIAL PERFORMANCE (% change) (non-GAAP)

* Source for value share position: Euromonitor 2016

* Notes: Energy Drinks – TCCC is added to Monster Beverage Corporation. Tea – Nestea is a part of TCCC (Canada only).

* Category Definitions: Juice / Dairy / Plant includes Total Juice (RTD Fruit Still Drinks + RTD Juice/Nectars) & Value-Added Dairy (RTD)(Drinking Yoghurt, Flavoured Milk Drinks, Milk Alternatives & Sour Milk Products).

Water / Sports includes Total Packaged Water (Packaged Water Enhanced + Plain Bottled Water) & RTD Sports Drinks. RTD Tea / Coffee includes RTD Packaged Tea & RTD Packaged Coffee (Monster + TCCC).

(2)

(1)

0

1

2

3

4

5

6

7

82014 2015 2016

Organic Revenue Comparable Net Revenue Comparable Income Before Taxes

Latin America

46

OVERVIEW

BUSINESS UNITS

% of 2016

Unit Case Volume

2016 Unit Case

Volume Growth

Brazil 22% -7%

Latin

Center14% -7%

Mexico 45% 5%

South Latin 19% -3%

Total 100% -1%

• Large, dynamic and multicultural consumer base with over half of consumers under 30 years old

• Highest operating margin of the segments; 2016 comparable operating margin was 53%

• Contains the majority of Coca-Cola FEMSA’s territory, the largest bottler by volume (“KOF” also operates in the Philippines)

• Contains two of the top five largest markets by volume, Mexico and Brazil (#2 and #4, respectively)

75%

<1%6%

17%

2%Value Share Position*

SSD #1

Energy #2







* Notes: Energy Drinks – TCCC is added to Monster Beverage Corporation.



(20)

(15)

(10)

(5)

0

5

10

15

2014 2015 2016


Europe, Middle East and Africa (EMEA)

47

OVERVIEW

BUSINESS UNITS

% of 2016

Unit Case Volume

2016 Unit Case

Volume Growth

Central &

Eastern Europe21% -2%

Middle East &

North Africa19% 2%

South & East

Africa14% 2%

Turkey & CCA 10% -2%

West Africa 5% 10%

Western

Europe31% 1%

Total 100% 1%

• Operating segment encompasses a range of markets, from developed (e.g. Germany) to emerging (e.g. Nigeria)

• Largest dollar profit segment; accounted for roughly 35% of 2016 comparable income before income taxes

• Contains the largest bottler in terms of reported revenue, Coca-Cola European Partners

• Operating segment formed effective 3Q16 by combining the legacy Europe segment with the legacy Eurasia & Africa segment

77%

1%6%

13%

3%Value Share Position*

SSD #1

Energy #2







* Notes: Energy Drinks – TCCC is added to Monster Beverage Corporation. Juices – "Coca-Cola Hellenic" is added to TCCC. Tea – Nestea is a part of TCCC.



(10)

(8)

(6)

(4)

(2)

0

2

4

6

2014 2015 2016


Asia Pacific

48

OVERVIEW

BUSINESS UNITS

• Operating segment encompasses a range of markets, from developed (e.g. Japan) to emerging (e.g. India)

• Segment with the lowest % of volume that is sparkling (~60%), largely due to the diversity of the portfolio in Japan

• Contains the highest number of Company-owned bottling operations (e.g. India, Vietnam, Myanmar)

• Contains the world’s largest coffee brand, Georgia Coffee, predominantly in Japan but also in select other markets



58%

<1%

9%

25%

8%

Value Share Position*

SSD #1

Energy #4




% of 2016

Unit Case Volume

2016 Unit Case

Volume Growth

ASEAN 22% 6%

Greater China

& Korea43% -1%

India & South

West Asia14% 3%

Japan 15% 3%

South Pacific 6% 7%

Total 100% 2%


* Notes: Energy Drinks – TCCC is added to Monster Beverage Corporation except in Japan.



(14)

(12)

(10)

(8)

(6)

(4)

(2)

0

2

4

2014 2015 2016


Bottling Investments Group (BIG)

49

• Operating segment includes all Company-owned bottling operations; became a separate operating segment in 2006

• Refranchising of bottling operations in North America is currently in process; U.S. expected to close by the end of 2017

• Majority of refranchising of bottling operations in China is complete; remainder to be completed in 2Q17

• Divestitures of German and South African bottling operations were recently completed (2Q16 and 3Q16, respectively); bottlers were contributed to the formation of Coca-Cola European Partners and Coca-Cola Beverages Africa, respectively

OVERVIEW

FINANCIAL PERFORMANCE (% change) (non-GAAP) BIG REFRANCHISING / GEOGRAPHIC FOOTPRINT

ADJUSTED 2016 PERFORMANCE*

* Illustrative example using 2016 performance and adjusting to remove transactions to refranchise certain Company-owned bottling operations in North America, Germany, China, and South Africa** Core represents the Company’s consolidated operations excluding Company-owned bottling operations*** Listed in relative size order from largest to smallest based on 2016 unit case volume

0.0

5.0

10.0

15.0

20.0

25.0

Actual 2016 Adjusted 2016*

2016 BIG Comparable Net Revenue ($B)

92%

8%

48%

52%

Core**

BIG

Other BIG Markets***: India, Vietnam, Malaysia, Guatemala, Uruguay,

Myanmar, Singapore, Cambodia, Nepal, Sri Lanka, Bangladesh(20)

(15)

(10)

(5)

0

5

10

2014 2015 2016


2016 Comparable Net Revenue

2016 Adjusted Net Revenue*

investor overview april 2017 - the coca-cola company · coca-cola zero / no sugar relaunch small...

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