PRESENTATION - Coca Cola İçecek

INVESTORPRESENTATION

MARCH 2021, ISTANBUL

PUBLIC

INVESTOR

FORWARD-LOOKING STATEMENTS

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.

2

PRESENTATIONMARCH 2021, ISTANBUL

PUBLIC

INVESTOR

AGENDA

3

Sustainability(pg. 41-60)

Appendix(pg. 61-66)

Financial

Review(pg. 27-40)

Growth

Opportunities(pg. 21-26)

Overview

of CCI(pg. 4-11)

Strategic Priorities(pg. 18-20)

2020

Performance(pg. 12-17)


OVERVIEW OF CCI

PUBLIC

INVESTOR

KEY INVESTMENT HIGHLIGHTS

*Non-alcohol ready-to-drink

GREATEXECUTION,

STRATEGY,PEOPLE

THAT HELPS ACCELERATING

QUALITYGROWTH

PRESENCE IN LARGE

& GROWING MARKETS

THAT OFFER NARTD

GROWTH OPPORTUNITY

DISCIPLINED FINANCIAL

MANAGEMENT

THAT LEAD THE WAY TO

INCREASING SHAREHOLDER VALUE

AGILITY & ADAPTIVENESS

THAT ENABLES US TO

EMERGE STRONGER FROM

ANY CRISIS

EXCELLENT BRAND

PORTFOLIO

THAT WE CONTINUE

TO INNOVATE

STRONG SYSTEM

ALIGNMENT

THAT IS IMPROVING

EVERYDAY WITH TCCC

PROVEN TRACK RECORD

WITH EXPANSION

& GROWTH IN

EMERGING MARKETS

ABUNDANT POTENTIAL

IN DEMOGRAPHICS

5


PUBLIC

INVESTOR

A MULTINATIONAL BEVERAGE COMPANY

TURKEY TURKMENISTAN

PAKISTAN

KAZAKHSTAN

SYRIA

IRAQ

JORDAN

AZERBAIJAN

KYRGYZSTAN

TAJIKISTAN

TURKEY

KAZAKHSTAN

SPARKLING

MARKET

POSITION

#1

#1

PAKISTAN

IRAQ

OTHERS

#1

#2

VOLUME

9%

9%

27%

43%

12%

TURKEY

INTERNATIONAL

EBITDA

37%

63%

TURKEY

KAZAKHSTAN

PAKISTAN

OTHERS

23% 43%

19%

15%

REVENUE

Figures reflect FY19 numbers unless otherwise stated(1)Unit case, 1 UC equals 5.678 liters

10 COUNTRIES, ~400MN

PEOPLE

1.2BN UC SALES

VOLUME

~780 THOUSAND

SALES POINTS

$2.1BN REVENUE&$448MN EBITDA

26 PRODUCTIONPLANTS,126 LINES

1.7BN UC(1) ANNUAL

PRODUCTION CAPACITY

6


PUBLIC

INVESTORV

OL

UM

E

4X

9%CAGR

2005-2020

12X

18%CAGR

2005-2020

RE

VE

NU

E

17X

21%CAGR

2005-2020EB

ITD

A

SINGLE COUNTRY

IN 2005…

318 MN UC 1,184 MN UC

EXPANDING INTO

CENTRAL ASIA AND

NORTH IRAQ

IN 2006-2007…

JV IN PAKISTAN

IN 2008...

SOUTH IRAQ

IN 2012…

A REGIONAL

BOTTLER TODAY…

…WITH A SUCCESSFUL

TRACK RECORD OF GROWTH

7


PUBLIC

INVESTOR

*Includes TFRS 15 adjustments

Maintaining Quality Growth

VOLUME NSR EBITDA

2020: Continuation of quality growth algorithm 2020: Record high free cash flow

Solid Free Cash Flow

Gro

wth

TL

millio

n

CAGR (2005-16) 2017 2018*2016 2017 2018 2019

2019

13%

4%

21%

26%

6%

27%

36%

15%

0%

19%

-37

Cumulative 2005-2015

642

729 727

18%17%

1,081

RESULTING IN A RISING PERFORMANCE...

8


37.7%

19.8%

-1.9%

20202020

1,987

PUBLIC

INVESTOR

…WITH THE RIGHT FOCUS

COVID-19 INITIATIVES

• OPTIMIZATION OF SKU’s

• QUICK ADAPTATION TO THE SHUT DOWN OF ON-

PREMISE CHANNEL, BALANCING IC MIX WITH

INITIATIVES AT HOME CHANNEL

• NEW MARKETING STRATEGIES FAVORING FUTURE/

HOME CONSUMPTION

• STRONG & PROACTIVE REVENUE GROWTH

MANAGEMENT INITIATIVES

Right Price Right Portfolio

Right Mix

IC Portfolio Availability

Right Channel

Channel prioritization

Regional Strategies

Effective discount and trade

promotion management

NSR > PCE growth

Portfolio expansion

Portfolio innovation

Portfolio diversification

Optimum price/pack

architecture

IC Share ↑6 pts in Turkey

(2019 vs 2014 YE)

Clear channel roles & objectives

Segmented execution

9


PUBLIC

INVESTOR

…AND EXCELLENCE IN EXECUTION

Outlet Coverage(as of ’20)

74%

Strike Rate***(as of ’ 20)

60%

Time in Field*(as of ’ 20)

75%

Call Completion Rate**(as of ’ 20)

92%

*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

10


PUBLIC

INVESTOR

2020 HIGHLIGHTS

VOLUME

2019 2020

TRANSACTIONS

2019 2020

NSR

2019 2020

EBITDA

2019 2020

VOLUME -1.9% NSR +19.8% EBITDA +37.7%TRANSACTIONS -13.0%

m/u

c

mn

Nu

mb

er

TR

Ym

TR

Ym

1,207

9,773

8,507

12,008

14,391

2,279

3,137

EBITDA NET SALES REVENUE VOLUME

11


1,184

Price adjustments, disciplined revenue growth management initiatives and strict cost

management contributed to another year of quality growth in such an unprecedented

year despite negative package and country mix

2020 PERFORMANCE

PUBLIC

INVESTOR2020 SNAPSHOT

13


AGILITYand rapid response to unprecedented challenges

STRENGTHof our portfolio and stakeholder relations

RESPONSIBILITYto our people, community and shareholders

COMMITMENTto our quality growth algorithm and discplined cash management

OPTIMIZATIONwith focused customer offerings based on our analytical capabilities

B-1.9%Sales Volume

B+19.8% Net Sales Revenue

B+282 bpsEBITDA Margin

B+27.6%Earnings per Share

B+83.7% Free Cash Flow

B

1 FY20 dividend is subject to the approval of the General Assembly of Shareholders

TRY1.97DPS1

PUBLIC

INVESTOR

FROM FAST ADAPTATION TO SOLID RECOVERY:

VOLUME PERFORMANCE BY QUARTER

14


Impacted ICshareTraffic inon-premise

YoY

ch

an

ge

vs 2019 average of

31%

-12.7%

-62.4%

-25.5% -23.2%

29%

18%

27% 26%

3.8%

-16.1%

1.8%

11.7%

Nevertheless volume

recovery accelerates

1Q20 2Q20 3Q20 4Q20

1Q20 2Q20 3Q20 4Q20 1Q20

2Q20

3Q20 4Q20

PUBLIC

INVESTORTURKEY: HIGHER NET SALES REVENUE

AND TIGHT COST MANAGEMENT LEADING

TO STRONG FINANCIAL PERFORMANCE

15


7%

34%

47%

-8%

12%6%

Volume NSR EBITDA

4Q20 2020

3% 1%

22%

-37%

On-premiseDiscounterModern Retail

Home

34%

24%

33% in 2019

25% in 2020

4Q19 4Q20

4Q20 Financial Performance YoY Channel Performance IC Share (%)

Categories

SPARKLING

4Q20: +18.1%2020: Flat

STILLS

4Q20: +1,4%2020: -13.3%

WATER

4Q20: -22.8%2020: -28.3%

PUBLIC

INVESTORINTERNATIONAL: HIGHER VOLUME,

REVENUE GROWTH INITIATIVES AND TIGHT COST

MANAGEMENT LEADING TO STRONG RESULTS

16


SPARKLING

4Q20: +21.6%2020: +6.5%

STILLS

4Q20: -11.6%2020: -5.4%

WATER

4Q20: -20.5%2020: -25.8%

4Q20 Financial Performance YoY Channel Performance IC Share (%)

16%

61%

126%

3%

26%

58%

Volume NSR EBITDA

4Q20 2020

5% 8%

35%

-26%

9%

On-premiseDiscounterModern

RetailHome Other

33%

28%

33% in 2019

25% in 2020

4Q19 4Q20

Categories

PUBLIC

INVESTOR

17


Share in

Total Volume (%)27%

Volume Performance (%) Volume Performance (%) Volume Performance (%)

-10.2% 2Q

1Q

32.1%

12.8%

5.2%

6.5%

-7.0%

-4.5%

1Q 15.2%

-10.5%

-8.6%

-4.1%

4Q

3Q 0.2%

Share in

Total Volume (%)

Share in

Total Volume (%)12% 9%

1.6%

2Q

1Q

2020

2Q

3Q

4Q

2020

1.6%

0.4%

4Q

2020

3Q

+11.4% y/y FY20

+38.4% y/y 4Q20

+8.0% y/y FY20

+12.0% y/y 4Q20

+4.9% y/y FY20

+7.2% y/y 4Q20

FY sparkling market share* @50.9% vs 48.1% in FY19

*Source: Canadean

Pakistan Kazakhstan Iraq

BRAND COCA-COLATM LEADS

SOLID PERFORMANCE ACROSS ALL MARKETS

STRATEGICPRIORITIES

PUBLIC

INVESTOR

CUSTOMER & CONSUMER

Being the preferred partner of our

customers, offering our consumers

a wide choice of product fit for

every lifestyle and occasion

CREATE VALUECOMMUNITY

Being a good

corporate

citizen

PEOPLE

Great place

to work

CREATE VALUE IN EVERYTHING WE DO

• Safe guarding our employees

• Supporting our communities

• Ensuring uninterrupted business continuity

at supply, production and RTM

• Protecting profitability

• Maintaining liquidity & strong balance sheet

Delivering on

short term priorities

...while executing

with longer term view

• ADAPTto changing consumer behaviours

• STAYas consumers’ preffered choice of beverage

• DELIVERin line with our ‘Quality Growth Algorithm’

and maximize returns

• EXPLOREstrategic expansion opportunities

• ENHANCEour system allignment

19


PUBLIC

INVESTOR

Accelerate Growth

• Full-beverage portfolio

• Revenue Growth Management

(RGM)

• Expand Sparkling & Stills

• Increase frequency

• Regional strategies

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”

STRATEGIC PRIORITIES IN CORE

BUSINESS TO CREATE VALUE

20


GROWTHOPPORTUNITIES

PUBLIC

INVESTOR

30%

INDUSTRY VALUE GROWTH

TOTAL NARTD INDUSTRY IN CCI

COUNTRIES: $14.7BN (2019)

FMCG 3%

51%

12%

11%

+$3BN6% CAGR

2019- 2024E

NARTD

SPARKLING

STILLS

WATER

CCI VALUE SHARE OPPORTUNITY

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

NARTD VALUE GROWTH OPPORTUNITY

22


PUBLIC

INVESTOR

MORE ROOM TO GROW…

YOUNG POPULATION

IN CCI COUNTRIES

~60%

Teen Recruitment Opportunity!

Share of Immediate Consumption

(IC) Packages in Sparkling

59%

51%

41%

36%

27%17%

Asia North Pacific America

World Average

Europe, Middle

East and Africa

Latin America

CCI

1Based on CCI analysis for Turkey operations

HIGHER

NSR PER

CASE1

~2X

GROSS MARGIN

VS. FC1

~1.5XHIGHER

23


24

INVESTOR

LOWER PER CAPS IN CCI COUNTRIES

NARTD per cap*

CCI average: 257

Un

ite

dS

tate

s1

.48

1

Sp

ain

1.0

66

Po

lan

d1

.00

0

Bu

lga

ria

**9

42

Sa

ud

iA

rab

ia7

93

Ch

ile

73

4

Ecu

ad

or

64

6

Bo

livia

53

9

Pe

ru5

13

So

uth

Afr

ica

46

6

Ru

ssia

nF

ed

era

tio

n3

63

Jo

rda

n3

21

Kyrg

yzsta

n2

76

Vie

tna

m2

13

Pa

kis

tan

12

4

Ind

ia8

2

Ita

ly1

.22

6

Me

xic

o1

.01

4

Ca

na

da

94

4

Au

str

alia

79

4

Gre

ece

**7

79

Gre

at

Bri

tain

69

5

Ne

the

rla

nd

s6

39

Ko

rea

, R

ep

ub

lic

of

53

1

Co

lom

bia

47

1

Alg

eri

a3

82

Ch

ina

32

5

Aze

rba

ija

n2

92

Mo

rocco

23

2

Nig

eri

a1

24

Ta

jikis

tan

85

Ge

rma

ny

1.3

19

Be

lgiu

m1

.04

4

Fra

nce

95

5

Ro

ma

nia

86

7

Ja

pa

n7

91

Arg

en

tin

a7

18

Th

aila

nd

64

3

Ka

za

kh

sta

n5

35

Tu

rke

y4

93

Ira

q3

94

Bra

zil

35

5

Ph

ilip

pin

es

31

3

Ind

on

esia

25

5

Eg

yp

t2

04

Tu

rkm

en

ista

n11

6

Ke

nya

70

CCI’S SHARE

NARTD

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


PUBLIC

INVESTOR

MORE ROOM TO DIVERSIFY PRODUCT PORTFOLIO

Share of Low/No Calorie in

Sparkling Volume (2019)Category Breakdown

Increasing

Household

Penetration

Double-digit

growth in

No Sugar

No

rth

Am

eri

ca

27

%

18

%

8%

6% 9

%

7%

4%

3%

2%

2%

1%

0,3

%

Tu

rke

y

EM

EA

Aze

rba

ija

n

La

tin

Am

eri

ca

Jo

rda

n

Asia

Pa

sif

ic

Ka

za

kh

sta

n

Ta

jikis

tan

Kyrg

yzsta

n

Ira

q

Pa

kis

tan

11%82%

85%

25


7%

15%

2006 OTHER SPARKLING

2020 SPARKLING WATER STILL

PUBLIC

INVESTOR

PRUDENT APPROACH TO GEOGRAPHICAL EXPANSION

Guiding principles for geographical expansion

• MANAGEMENT CONTROL & FULL CONSOLIDATION RIGHTS

• REASONABLE PROXIMITY

• COMPLEMENTARY MARKET DYNAMICS

• ROIC > WACC

81%

9%

12%

27%

43%

19%

Healthier Diversification

2006 2020

TURKEY

KAZAKHSTAN

PAKISTAN

IRAQ

OTHERS

INTERNATIONAL

26

Volume

Breakdown

9%


FINANCIAL REVIEW

PUBLIC

INVESTORMARGIN EXPANSION ON THE BACK

OF VOLUME & NET SALES REVENUE GROWTH

28


Consolidated (TRYm) 4Q20 Change FY20 Change

Net Sales 3,184 48.1% 14,391 19.8%

Gross Profit 1,044 36.7% 5,072 21.3%

EBIT 155 78.7% 2,143 41.2%

EBITDA 517 91.1% 3,137 37.7%

Profit Before Tax -171 n.m. 1,766 49.0%

Net Income -163 n.m. 1,233 27.6%

Gross Margin 32.8% 2.73pp 35.2% 0.43pp

Gross Margin on a comparable basis* 36.6% 3.31pp 36.1% 3.35pp

EBIT Margin 4.9% 0.83pp 14.9% 2.26pp

EBIT Margin on a comparable basis* 8.7% 6.88pp 15.7% 5.17pp

EBITDA Margin 16.2% 3.65pp 21.8% 2.82pp

EBITDA Margin on a comparable basis** 16.2% 5.88pp 21.8% 4.89pp

EPS*** (0.64) n.m. 4.85 27.6%

EPS on a comparable basis**** (0.16) n.m. 5.32 40.2%

* The impact of cash designation and the change in the useful life of spare parts is excluded

** The impact of cash designation is excluded

*** EPS in TRY per 100 shares

**** The impact of the change in the useful life of spare parts is excluded

PUBLIC

INVESTOR

FOCUSING ON PER UNIT CASE GROWTH

29


Co

ns

oli

da

ted

(T

RY

), F

X-N

eu

tra

l

4Q19 4Q20 2019 2020

EBIT per UC

4Q19 4Q20 2019 2020

Net Revenue per UC

4Q: 14.1% y/y

FY: 12.5% y/y

10.59

4Q19 4Q20 2019 2020

Gross Profit per UC

12.08

9.94

11.19

4Q: 6.0% y/y

FY: 14.7% y/y

4Q: 3.0% y/y

FY: 32.1% y/y

3.76

3.99

3.46

3.97

0.43 0.44

1.26

1.66

PUBLIC

INVESTORSTRONG PROFIT GENERATION

THROUGH STRICT COST MANAGEMENT

30


• higher unit case sales price

• limited increase in certain raw materials

• cost efficiencies

TRY 0.55 higher

EBIT/uc through lower Opex

as % of NSR:

2,279

891

(144)

111 3,137

TRY 0.82 higher

GP/uc through:

• direct marketing expenses

• transportation expenses

• meeting expenses

• travel expenses

*Opex on a comparable basis: adjusted for spare parts amortization

PUBLIC

HIGHER OPERATING PROFITABILITY

WITH TIGHT FINANCIAL EXPENSE MANAGEMENT

31

INVESTORPRESENTATIONMARCH 2021, ISTANBUL

(1) Depreciation and amortization, including right-of-use asset amortization Totals may not add up due to rounding differences

TRYm

FY19

Net Income

Δ in

EBITDAΔ in

Other

D&A(1)

Δ in

FX gain

(loss)

Δ in other

financial

inc (exp)

Δ in

other items

Δ in

minority

Δ in

taxFY20

Net IncomeOne-off non-cash

Spare Parts

Amortization

Non-cash

Iraq put option

966

1,233

INVESTORLIQUDITY REMAINS STRONG,

CURRENCY RISKS WELL MITIGATED


60%

26%

14%

USD TRY OTHER

Cash Profile

TRY 4.7 b 49%

20%

14%

9%

8%

HEDGED USD EUR TRY OTHER

Gross Debt

Profile

TRY 5.9 b*

21%

4%

19%

56%

2021 2022 2023 2024

Debt Maturity

Profile*

US

Dm

illio

n

Net Long

FX Position

$163m vs

YE19

$82m vs

YE19

FX Exposure on P&L

-67FX Denominated

Debt

FX Denominated

Cash

Hedges

Net Investment

Hedge Net Debt (USD mio) Net Debt / EBITDA

Net Debt

431

201

2019 2020

0,47x

1,12x

• FX debt and FX cash are on a consolidated basis.

• Numbers do not include IFRS lease figures

• 40 mio USD held in the Netherlands is excluded since its reporting currency is USD

*Numbers do not include IFRS lease figures32

PUBLIC

INVESTORHEDGING BEYOND 2020

TO LOCK IN LOW COMMODITY PRICES

33


MANAGING FX EXPOSURE RELATED TO RAW MATERIALS...

• Prudent approach to operational FX risks by implementing derivative instruments to cover exposures

• Fixing of local currency rates with suppliers to the extent possible

(1) As of January 2021

(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.

HEDGED POSITION

FOR 2021(1)

77%(2)

HEDGED POSITION

FOR 2021(1)

65%

for 2022(1)

10%

HEDGED POSITION

FOR 2021(1)

55%(1)

PUBLIC

INVESTOR

Current Ratings Issuer Rating Outlook Date

Fitch

Moody’s

BBB-

B1

Stable

Negative

2020, July

2019, June

• Bottlers Agreement with The Coca-Cola Company

• Leading and/or Competitive Market Positions across

all Operations

• Geographical Diversification

• Operating Know-How in Emerging Markets

• Demographic Potentials

• Strong Liquidity Profile

• Low Leverage

• Strong Interest Coverage

• Solid Free Cash Flow Generation

• Manageable FX Risk Position

Stand-Alone Credit Rating Drivers

SOLID CREDIT STRENGTHS

34


PUBLIC

INVESTORPILLARS OF STRONG FCF – IMPROVING

WORKING CAPITAL EFFICIENCY

2016 30 Days 47 Days 51 Days




CashConversion

Cycle

201626 Days

201715 Days

201812 Days

20199 Days

Net Working Capital/NSR*

FULL YEAR

7.4%

2016

5.7%

2018 2019

4.5% 4.3%

-0.3%

*Net Sales Revenue

DSO

35

DSI DPO


2017

2020

202010 Days


PUBLIC

CapEx / NSR*

FULL YEAR

20202019201820172016

7.3%

5.9%

6.3%

8.1%

4.6%

INVESTORPILLARS OF STRONG FCF–PRUDENT

CAPITAL EXPENDITURE

TL666 MILLION CAPEX IN 2020

• 55% RELATED TO INTERNATIONAL OPERATIONS

• 45% RELATED TO TURKEY OPERATIONS6.4%on

average

36


INVESTORTRACK RECORD OF IMPROVING FREE

CASH FLOW GENERATION

Prudent CapEx

Working Capital

Efficiency

EBITDAGrowth

2013 2014 2015 2016 2017 2018 2019 2020

-44

-0.3%

10

0.1%

46

0.5%

642

7.6%

729

8.2%

727

9.3%

1,079

11.0%

FCF (TLmn) FCF Yield

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

Free Cash Flow and Yield*


11.9%

1,987

37

PUBLIC

INVESTOR

DISCIPLINED CAPITAL ALLOCATION

Optimum CapEx Allocation

ORGANIC GROWTH INORGANIC GROWTH DELEVERAGING SHAREHOLDER RETURN

Selective M&A Strategy Debt Repayment Dividends

CapEx/Sales ~6.3% (2019)

• Capacity Expansion

• Cold drink equipment

• Maintenance

Bolt-on acquisitions

Geographical expansion

• Strategic fit

• Value creation

• Reasonable proximity

Optimum debt repayment

• Solid balance sheet

• Improving leverage metrics

Sustainable dividend policy

• Increasing payout ratio

• Higher dividend yield

38


PUBLIC

INVESTOR

* 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%.

• NET DISTRIBUTABLE INCOME

• FREE CASH FLOW GENERATION

• CAPEX AND OTHER FUNDING NEEDS FOR GROWTH

• PREVAILING MACROECONOMIC CONDITIONS

DIVIDENDS

2019 DIVIDEND PAID IN 2020 IS TL 239MN*

DIVIDEND AMOUNT BASED ON:Dividend per Share (TL per 100 shares)

39


2019

Dividend Yield: 2.1%

2015


0.12

2016


0.2

2017


0.79

2018


1.97(***)

0.94

0.83

Dividend Yield:

1.1%(*)

(*)TL 211MN is paid in February 2021 from accumulated profits as the restriction period for the distribution of profits has ended

(**) Dividend yield is calculated with 24.02.2021 closing price

(***)The distribution is subject to the approval of AGM

2020

Dividend Yield:

2.7%(**)

PUBLIC

INVESTOR2021 GUIDANCE

40


SALES VOLUME• 4% - 6% growth on a consolidated basis

• Low single digits growth in Turkey

• High single digits growth in International operations

NET SALES REVENUE• High teens growth on a consolidated basis (FX-neutral)

EBITDA MARGIN

• Flattish in 2021 vs 2020

NWC / SALES

• At low-single digits

CAPEX / SALES• 6% - 8%

SUSTAINABILITY

PUBLIC

INVESTORSHAREHOLDER STRUCTURE

& COMPOSITION OF THE BOARD OF DIRECTORS

• 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).

20.1%The Coca-Cola Export Corporation

(“TCCEC”)

1.9% Özgörkey Holding AŞ

50.3%Anadolu Efes

Biracılık ve Malt

Sanayi AŞ

(& its Subsidiaries)

27.8%

Free Float and Other

Compositon of BoD

• 12 Members

• 12 of whom are non-executive

• 4 of whom are independent


42

PUBLIC

INVESTOR

CCI’S SUSTAINABILITY JOURNEY


43

1st Environmental

Policy

2009Ranked in the 1st place

in Turkey’s Accountability Rating

Signed the United Nations Global Compact (UNGC)

Published 1st Sustainability Report

2014Achieved the 2nd highest

score in the disclosure category of CDP Turkey

Climate Leadership Awards

Became 1st company from Turkey in the CDP

Global Water Program

2016Joined the “BIST 100 Sustainability Index”

Joined “MSCI Global Sustainability Index”

Joined “FTSE4Good Emerging Index”

Listed among “Turkey’s CDP Climate Change Leaders”

2018Externally assured

Turkey Operations’ waste data

Updated “Workplace Rights Policy” as “Human

Rights Policy”

Received LEED Gold Certificate for CCI

Dudullu HQ

Joined the “BIST 50 Sustainability Index”

Joined the “Euronext Vigeo Emerging 70 Index”

Signed “UN Women’s Empowerment Principles”

Joined “ECPI Emerging Markets ESG Equity index”

Joined “Vigeo Eiris Best Emerging Markets

Performers Ranking”

Joined “30% Club’s Turkey Chapter” as part of the Independent Women

Directors Project

2017

Became a member of ERTA (Integrated Reporting Turkey

Network)

Joined “Business Initiative for Plastic” in Turkey

2019

2012Listed among top two companies

in Turkey’s CDP Carbon Performance Leaders

Represented Turkey in Rio+20 Conference among the best Green Economy Projects

Externally assured for ISAE 3000 (for the 1st time)

Listed as Turkey’s 1st food and beverage company in

CDP Global Disclosure Leaders

Signed the “2°C Communiqué”

2011

Became the 1st company from Turkey and within TCCS in the UNGC 100 Index

Received the 1st ISO 14064-3 Certificate in Turkey for its GHG inventory

Listed among Carbon Disclosure and Performance Leaders in CDP Turkey 100

Climate Change Report

Received “Gender Equality Certification” from KAGİDER in Turkey

20132002 2015

2020Only company from

Turkey and within TCCS in the UNGC 100 Index

(since 2013)

Among the co-founders of the Collect and Recycle

Alliance (CORE) in Pakistan

Signed LEAD Network CEO Pledge

Joined "BuyersSupporting VIVE”

PUBLIC

INVESTOR

ESG ORGANIZATION IN CCI

BOARD OF DIRECTORS

ENVIRONMENTAL & SOCIAL

SUSTAINABILITY COMMITTEE

CSR WORK GROUP

EMISSIONS REDUCTION

WORK GROUP

WATER STEWARDSHIP

WORK GROUP

SUSTAINABLE PACKAGING

WORK GROUP

PRODUCTION STEERING

COMMITTEE

EXECUTIVE COMMITTEE

GROUP H&S COMMITTEES CULTURE

GENDER

GENERATION

LOCATION BASED H&S

COMMITTEE

HEALTH & SAFETY

STEERING COMMITTEE

DIVERSITY & INCLUSION

ADVISORY BOARD

ETHICS & COMPLIANCE

COMMITTEE

AUDIT COMMITTEERISK DETECTION

COMMITTEE

CORPORATE GOVERNANCE

COMMITTEE

GROUP ETHICS

COMMITTEES

COUNTRY ETHICS

COMMITTEES

44


PUBLIC

INVESTOR

CREATE

VALUE

CUSTOMER &

CONSUMER

COMMUNITY

DEVELOPMENT

HUMAN

CAPITAL

CONSUMER

WELL-BEING

CUSTOMER

VALUE

HUMAN

RIGHTS

ENVIRON-

MENTAL

FOOTPRINT

PEOPLECOMMUNITY

OUR FOCUS & SUSTAINABLE DEVELOPMENT GOALS

45


PUBLIC

INVESTOR

ENVIRONMENTAL FOOTPRINT

Returnable glass bottles practices Electricity Forklifts

Logistics improvements Cooler emission reductions Smarter use of technology

ENERGY MANAGEMENT & CLIMATE PROTECTION

Transport & Distribution Cooling Practices

2 kilotons of CO2 emissions avoided in 9 countries since 2009, equaling to the amount of CO2 emissions that 170 million trees absorb from the atmosphere

Production

Core Energy Usage Ratio (MJ/L) (2020) “Route Optimization Project”

TCCC Average: 0,39 MJ/L 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

By using cold drink equipment with Energy

Management Device (EMD), we can

reduce energy consumption up to 42%.

The total ratio of cold drink equipment

with EMD within our operations in seven

countries rose to 54% in 2020

46


0.250.28

0.42 0.41

0.31

0.430.44

0.560.63

Tu

rke

y

Jo

rda

n

Ka

za

kh

sta

n

Aze

rba

ijan

Pa

kis

tan

Kyrg

yzsta

n

Ta

jikis

tan

Tu

rkm

en

ista

n

Ira

q

PUBLIC

INVESTOR

20162006 2017 2018 2019

TCCC TURKEY JORDAN KAZAKHSTAN AZERBAIJAN KYRGZSTAN TAJIKISTAN CCI TOTALPAKISTAN

0,3

9

1,1

2

0,2

5

0,2

7

0,3

1

0,7

2

0,4

4

0,4

5

0,4

4

0,6

7

0,3

8

0,3

5

0,3

6

0,4

0

0,3

8

0,3

6

0,3

3

0,4

8

0,4

4

0,4

6

0,4

2

0,4

6

0,3

3

0,2

6

0,2

7

0,2

6

0,2

6

2006 is the baseline year for the TCCC, Turkey, Jordan, Kazakhstan, Azerbaijan operations. 2016 is the base line year of Pakistan and Kyrgzstan.

Core Energy Use Ratio (MJ/L)

ENVIRONMENTAL FOOTPRINT

46%

16%12%

72%

39%

47


PUBLIC

177.000

654.000

985.785

1.420.312 1.548.905

1.652.967

2015 2016 2017 2018 2019 2020

INVESTOR

WATER MANAGEMENT

SAVE & REDUCE REUSE REPLENISH

We recycle and reuse448,819 m3 of the water in

our production processes

Water Savings Across CCI (m3)

Water Usage Ratio (L/L)

Recycled and Reused Water (000 m3)

TCCCAverage:1.85 L/L

48


153

477537

691

590

449

2015 2016 2017 2018 2019 2020

Life Plus Environment Program:

• Agriculture of the Future Project

• Harran Night Irrigation Project

We replenished12 bn liters* of

water on 50 mn m2

of agricultural land

*Reflecting 9 countries of

operation within the scope of

Integrated Report

1,45 1,46 1,511,64

2,09

1,68

2,26

2,62

1,92

Tu

rke

y

Jo

rda

n

Ka

za

kh

sta

n

Aze

rba

ijan

Pa

kis

tan

Kyrg

yzsta

n

Ta

jikis

tan

Tu

rkm

en

ista

n

Ira

q

PUBLIC

INVESTOR

2006 2016 2019

Pakistan, Kyrgyzstan and Tajikistan data are included in the sustainability report in 2015, 2016 and 2019 respectively.

TCC TURKEY JORDAN KAZAKHSTAN AZERBAIJAN KYRGZSTAN TAJIKISTANPAKISTAN

2.2

8

2.5

6

1.8

5

1.7

4

1.5

2

3.4

4

1.6

1

2.1

0

1.5

1

2.1

0

1.5

8

2.0

0

2.0

3

1.8

8

1.6

2

Reductions in water Usage Ratios (WURs) between 2006 - 2019 (L/L)

-28%

-28% -25% -14%-2%-53%

-13%

49

WATER MANAGEMENT


PUBLIC

INVESTOR

REDUCE

PET and Glass Lightweight

REUSE

Returnable Glass Bottles

RENEW

r-PET (Recycled PET)

RECYCLE

Post-Consumer Material Collection

Post-consumer packaging

recycling rate (Turkey)

Implementing lightweight

programs since 2010 in

Turkey, Kazakhstan,

Azerbaijan and Kyrgyzstan

145 tons of resin and

232 tons of glass and 100tons of carton is saved with

our lightweight practices

in 2019

Glass bottles can be used up

to 8 times

In 2019,

192K tonsof CO2 was avoided via

returnable glass bottle

practices

This equals to the amount

absorbed by ~16 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%

In 2019, we used 20% content

r-PET in 30% of our total

volume

Working to develop and

increase r-PET supplier

capacity in CCI countries

Cross-functional

Recycling Task Force established

in Turkey, Pakistan 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% 54% 54%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-8.2%

-11.8%-9.5%

-15.4%

Packaging Weight Reductions in Turkey (%)

-26.1%

450/500 ml Packaging

1 lt Packaging

1.5 lt Packaging

2.5 lt Sprite

5 lt Damla

2009 2019

SUSTAINABLE PACKAGING

50


PUBLIC

INVESTOR

COMMUNITY

WOMEN EMPOWERMENT YOUTH EMPOWERMENT

We have been a signatory to the UN Women’s

Empowerment Principles (WEP) since 2015

trained c.32,000 women

and 500 refugees in Turkey

AWARDS OF MY SISTER PROJECT IN 2019

1. Golden Compass (Altın pusula) CSR-Education Category

2. 11th Global CSR Awards Empowerment of Woman

3. Communitas Awards Excellence in Corporate Social Responsibility

4. The International CSR Excellence Awards Corporate Social Responsibility

5. Best Business Awards Best CSR

6. IPRA Golden World Awards Corporate Communicatioans

trained more than 2,000 women in Kazakhstan

to improve their business skills

trained more than 1,500 women in

Azerbaijan since 2017

My Sister

Program

The Coca-Cola

Belestery Program

UNDP

Women’s

Empowerment

Program

~60% of the population

in CCI geography is

below 30 years of age

Award-winning program, fostering students’

physical and personal development

through sports and group activities

Investing in our geographical regions’ young and

growing population is critical to the sustainable

development of our communities.

131 public

200,000 children

from 7,800 schools

115,000 youngsters,

4 cities, 6 branches in Azerbaijan

Implemented in 2019

covered more than 2,000 participants of

which 65% were women

3.2.1 Move!

(Turkey, Kazakhstan)

Coca-Cola

Football

Tournaments(Kazakhstan, Azerbaijan, Iraq)

The Olympic Moves

Program

New

Generation

Project

schools

over 170K

youngsters

51


PUBLIC

INVESTOR

WATER STEWARDSHIP WASTE MANAGEMENT

Sourcewater Vulnerability Assessment (SVA) and

Sourcewater Protection Plan (SWPP) conducted by

3rd party firms for each plant

In collaboration with Coca-Cola Turkey

Joined WRI’s groundbreaking 10x20x30

Initiative with the goal to reduce food

loss and waste by 50% by 203044%* of the total population in Pakistan

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

of deaths are due to water borne diseases

Launched in 2015, Paani Initiative provided

clean water to c.1,000,000 people

with 28 plants across Pakistan

*Pakistan Council of Research in Water Resources (PCRWR)

**Pakistan’s Waters at Risk Report

Raising awareness on plastic collection

We attach particular importance

to water related issues

FOCUS ON

WATER STRESS

AREAS

Sourcewater

Protection

‘Kollekt’ recycling

application

10x20x30

InitiativePaani

Safe Water

Initiative

Temiz Olkem

project

(Azerbaijan)

Transition to a circular economy is a priority focus area

COMMUNITY


52

Cleanup projects in Kyrgyzstan and Azerbaijan Coastal Clean-

Up Project

PUBLIC

INVESTOR

CONSUMER WELL-BEING

• Well-diversified product portfolio

• Increasing focus on Low/No calorie

• Expansion in Stills

• Innovation

PASSEDall food safety and quality audits

All CCI plants obtained Food Safety System

Certification FSSC 22000 Standard

53


PUBLIC

INVESTOR

CUSTOMER VALUE

Superior Execution

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 2019 distributor

satisfaction survey score was 89%

Commercial Excellence

At Global Customer and Commercial

Leadership Awards

CCI won the 1st Place Award

Best All-Around the World &

Commercial Market in Turkey

&

RED became one of the finalists

“How to Build a Sustainable Growth

Momentum with RED”

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

* (2008-2020)

54


1,593 OE Projects*

809 certifications

74 mn savings*

PUBLIC

INVESTOR

HUMAN RIGHTS

Human Rights Policy……integrated to our

practices……affecting various

stakeholders

CCI launched 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

Human rights trainings in 10 local

languages targeting all CCI employees

&

Additional 30,000 people through our

4,000 suppliers

&

International Human Rights

Day Celebrations across

CCI

55


PUBLIC

INVESTOR

HUMAN RIGHTS

Supplier Guiding Principles

Supplier Guiding Principles (SGP)

determine the social, environmental,

ethical and economic minimums

TCCS expect from their suppliers.

*realized

**target

SGP Audit

Targets for

Years

2019

92%*

2020

96%**

Diversity and Inclusion

Diversity and Inclusion Advisory Board

Gender

• Lead Network CEO Pledge signed

• Launched «Business Against Domestic

Violence Policy»

• Gender Pay Gap Internal Audit completed

Generation

• Next Talent

• The U30 Strategy Camp

Culture

• “Leaders in the Field” meetings

Health and Safety

Health and safety issues managed

through the Coca-Cola Operating

Requirements (KORE)

CCI improved its Safety Maturity Index

(SMI) score by +5.4% in 2019

26% increase in workplace safety training

time provided to employees vs. 2018

67,506 human-hours of OHS*

training to our employees

*Occupational Health & Safety

56


PUBLIC

INVESTOR

HUMAN CAPITAL

TEAMWORK

PASSION

ACCOUNTABILITY

INTEGRITY

Talent Management

• CCI Talent Management Principles

• My Career Platform

• CCI Career Navigation Framework

• Talent Readiness Index (TRI) improvement

Employee Engagement

• “Leadership in Field” program

• “Value Play Shop” program

• CCI Employee Engagement Surveys

57


PUBLIC

INVESTOR

CREATING VALUE DURING COVID-19

• ~13 Million TL Budgeted by TCCF

• 13.4 TONS Disinfectant Produced and

donated in Turkey and Kyrgyzstan

• 14,192 Grocery Baskets delivered to

people in need

• 6,200 Unit case of Product Donations to

the Red Crescent

• 1,450 meal donations to the Emergency

Services workers, police and army officers

in Turkey and Pakistan

• 3,000 surgical masks and 2,000 gloves

• 5,000 SMEs supported via

partnership with Metro Turkey

• Support Program developed for

the Traditional Channel

• Hygiene kits delivery

• 15,000 Shopping cards for

unemployed HORECA

employees

• COVID-19 Awareness Trainings

• 75 Webinars on mental health,

parenthood, leadership during

COVID-19 times

• 30+ Top Leadership and Internal

Communication Campaigns

• 9 Employee Climate Surveys

• Immediate H&S response

and precautions

• Access to online education via

LinkedIn Learning and Udemy

For Our Customers & Consumers For Our Communities For Our People


58

PUBLIC

INVESTORCCI IS INCLUDED IN LEADING

SUSTAINABILITY INDICES

59


PUBLIC

INVESTOR

ON OUR AGENDA

60


SCIENCE BASED

TARGETS

INITIATIVES2030 TARGETS

TO BE RELEASED

CEO WATER

MANDATE

APPENDIX

PUBLIC

INVESTOR

Turkey 84.3 25.1 493 66% 1 713 78%

Pakistan 220.8 4.5 124 51% 1 432 71%

Kazakhstan 18.8 25.9 535 52% 1 173 84%

Iraq 40.2 14.4 394 42% 2 166 65%

Azerbaijan 10.1 16.2 292 85% 1 60 80%

Jordan 10.1 9.5 321 22% 2 35 38%

Turkmenistan 6.0 18.6 116 n.a. n.a. 28 2%

Kyrgyzstan 6.5 3.6 276 60% 1 16 118%

Tajikistan 9.5 3.1 85 n.a. n.a. 20 31%

Population GDP per cap, PPP Per capita NARTD CCI's Market Share CCI's Market Position Capacity Capacity

(mn)(1) (USD 000)(2) consumption (8 ounce servings)(3)

in Sparkling(4) in Sparkling(5) (mn UC) Utilization Rate

Source: (1,2) IHS Market (3) CCI and TCCC estimates (4,5) Nielsen, Canadean

COUNTRY DATA-2020


62

PUBLIC

INVESTOR

BACK-UP – COMMUNITY SNAPSHOT

PROJECTS COUNTRIES IN 2019

3.2.1. Move Turkey, Kazakhstan

Coca Cola Belestery Kazakhstan

Olympic Moves Program Azerbaijan

Coca Cola Grassroots Football Tournament Azerbaijan

New Generation Project Azerbaijan

My Sister Program Turkey, Azerbaijan

Successful Woman Successful Future Azerbaijan

UNDP Women’s Empowerment Program Azerbaijan

Paani Safe Water Initiative Pakistan

Harran Night Irrigation Project Turkey

Konya Agriculture of the Future Turkey

Recycling Project with WWF Pakistan

Kollekt App Turkey

Temiz Olkem Azerbaijan

Issyk Kul Coastal Cleanup Project Kyrgyzstan

PROJECT TYPE

YOUTH

EMPOWERMENT

WOMEN

EMPOWERMENT

WATER

STEWARDSHIP

WASTE

MANAGEMENT

63


PUBLIC

INVESTOR

Coca-Cola

WUR

CCI

1.71 L/L

Hellenic

1.74 L/L

CCEP

1.60 L/L

FEMSA

1.52 L/L

EUR 0.33 MJ/L N/A 0.32 MJ/L N/A

% of recycled PET

in plastic packaging6% 12% 30.5% 23.7%

Lost Time Incident Rate 0.19 0.33 1.07 1.10

BACK-UP – BENCHMARK

WITH OTHER BOTTLERS

64


PUBLIC

INVESTORYoY

ch

an

ge

JAN FEB 1th - 15th

MAR

16th - 31th

MAR

JAN FEB MAR APR

JAN FEB MAR APR MAY

20 20 20 20 20

MAY JUN JUL AUG SEP OCT NOV DEC

JUN JUL AUG SEP

20 20 20 20

OCT NOV DEC

20 20 20

Bottom

of the Crisis

APR MAY JUN JUL AUG SEP OCT NOV DEC

6%

2%

-42%

-82%

-75%

-44%

30% 31%

25%

12%16%

24% 25% 27%

30% 30%

27%

19%

-30% -32%-12%

-8%

-26%-39% -31%

-27%-23%

-10%-7% -1%

12%

24%

9%3%

8%

13%

19%

SOLID VOLUME GROWTH

ACROSS THE BOARD IN 4Q

vs 2019 average of

31%

65


Impacted ICshareTraffic inon-premiseNevertheless volume

recovery accelerates

PUBLIC

INVESTORSPARKLING CONTINUED TO BE

THE MOST RESILIENT CATEGORY DEMONSTRATING ITS

IMPORTANCE IN OUR CONSUMERS’ LIVES

SPARKLING

82%

SPARKLING

82%

STILLS

7%

STILLS

7%

WATER

11%

WATER

11%

• Coca-ColaTM growth in all our countries without exception

• Iced tea was relatively more resilient among stills despite cycling

12.0% growth a year ago

• Double digit growth in the sparkling category in both

Turkey and International markets

• Coca-ColaTM was main driver with growth contribution of

all countries except for Tajikistan

-23.2%-27.4%

-1.1% -10.8%

+3.9% +7.7%+20.2% + 24.8%

66

4Q20 FY2020


Thank you!

Documents

PRESENTATION - Coca Cola İçecek