The Coca-Cola System

The Coca-Cola system

The Coca-Cola Company Coca-Cola HBC is one of manufactures and distributes the top three Coca-Cola concentrates and syrups, bottlers, of which there are owns the brands and bears more than 250 worldwide. responsibility for brand Bottlers are responsible for marketing. It operates in production, packaging, more than 200 countries distribution and sales of worldwide. It recently the company’s complete launched its new Total portfolio of products to beverage company concept – customers who sell the offering beverages for all products to consumers. occasions and lifestyles. We have been a producer in the Czech Republic for 25 years Plant opening ceremony on 19 March 1993 Coca-Cola in Kyje facility Czech PM Václav Klaus, The Coca-Cola Company President Roberto C. Goizueta, and CEO of Australian Coca-Cola Amatil Dean Wills

1993 1993

CZK 816m of initial investment in the 3 280 113m plant litres Production of beverage 3 brands Coca-Cola, Fanta, bottling 280 Sprite, Kinley, Lift a Cappy, lines employees plus post-mix syrups 113m litres of non-alcoholic drinks 2018 40,000 active customers 1,000 employees in CZ 317m and SK 5 3.2b litres 15 mil. consumers on Czech 5 production lines and Slovak markets

317m litres of beverages CZK 3.2b invested over the past 10 years

• 200 different beverage options exported to more than 10 countries • 100% of electricity consumed by bottling plant is from renewable sources • 90% of solid waste from bottling plant is recycled We invest in development and modernisation Improved efficiency of PET lineWe increase bottling efficiency and reduce our environmental impact.

• Marked reduction in water consumption - 12,000 cubic metres • Considerable energy savings - in excess of 2 million kWh • Increased production capacity - up to 56,000 litres of beverage per hour • Better planning, elimination of stock shortages requiring extra shipments of products from other countries • Rapid production line change-overs Unique AdeZ production

Bottling plant in Prague will be the first in Europe to produce AdeZ plant- based beverage.

• New aseptic line designed to produce 6 variants of AdeZ plant-based beverage for 11 markets 250 ml – Almond-Mango-Passion fruit 250 ml – Oats-Strawberry-Banana 800 ml – Almond 800 ml – Oats 800 ml – Rice 800 ml – Coconut • Reduced energy and maintenance costs • Equipped with a new aseptic tank, homogeniser and UHT pasteuriser We are a leader in sustainability Sustainability is our priority

• Coca-Cola HBC is the world sustainability leader in the beverage industry We minimise our environmental • We’ve topped the Dow Jones Sustainability impacts by reducing waste and water Index since 2008, and the DJSI four times in a and energy consumption. row for sustainability between 2014-2018

Total Score Economic Dimension Environmental Dimension Social Dimension 100 100 120 100

80 80 100 80 80 60 60 60 60 40 40 40 40 20 20 20 20 0 0 0 0 CC HBC Industry Industry CC HBC Industry Industry CC HBC Industry Industry CC HBC Industry Industry Average Best Average Best Average Best Average Best DJSI, 2017 Reducing consumption

2,97 Water Water (m3/l) 2,53 2,21 Over the last 10 years we 2,08 2,01 1,93 1,93 have reduced water 1,68 1,72 1,7 consumption per litre of beverage produced by almost 50%. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Power 0,833 Total Energy Consumption 0,795 (MJ/l) 0,718 0,688 0,688 0,666 0,65 Over the last 10 years we 0,561 0,549 0,557 have reduced electricity consumption per litre of beverage produced by almost one third. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Responsible waste management

• In 1997, we initiated and co-founded Eko-kom: now 74% of domestic waste is recycled and households have separated waste bins within 100 metres from home • We made our plastic bottles and caps 21.4% lighter • All our PET bottles are 100% recyclable and contain up to 30%-recycled material • We have increased recycling of solid waste above 90% over the past 10 years

Global initiative for a World Without Waste – aiming to make a contribution by 2030 of collection and recycling equivalent to 100% of packaging we use. We are a TOP employer

We rank among TOP employers in the consumer goods industry – we placed second in 2016 and 2017.

• We employ 1,000 people directly (over 800 in Czech Republic) and support another 10,000 jobs indirectly • Our employee`s enjoy above-average salaries exceeding in average CZK 37,000 (without management) • In addition to financial remuneration, our employees also enjoy a range of other benefits, including employee stock ownership schemes or availability of home office • Through our Young Trainee Program we help young people gain work experience – we will recruit another 12 talents this year Doing business responsibly As a member of the Union of European Soft Drinks Associations (UNESDA) we have pledged the following• We offer: low- or zero-calorie options (in line with a pledge by The Coca-Cola Company) We will reduce average sugar content in our drinks by 10% by 2020 We are growing our portfolio of zero- and low calorie options We are rethinking our recipes – such as Sprite in 2017

• We provide clear nutritional information on packaging Along with five other beverage producers we plan to introduce a uniform (traffic lights-like) EU-wide system of nutritional-value marking • With the new school year, we will stop selling carbonated sugary drinks with added sugar in secondary schools • We exercise responsible marketing that does not target children under 12 years of age Project To dáš! We focus on young people and on empowering them to take advantage of opportunities for growth and development.

• A project shared with Tereza Maxová children’s Foundation • Launched in autumn 2017 with a focus on disadvantaged young people at the start of their careers • Includes legal assistance and a manual for employers • Since the start of the project 120 young people got involved and 40 of them obtained a short- or long-term work experience • A launch of the project in Slovakia is planned for this year We support nonprofit organisations As a long-term supporter of nonprofit organisation we enable them to help those in need. • We are the main partner of the event Teribear hýbe Prahou (Teribear moves Prague) • We collaborate with the Světluška [Firefly] project run by Czech Radio Endowment Fund • We help Šance Olomouc, which looks after children in oncology care • We support non-profit organisation Cesta domů [Way home] and Acorus • In both the Czech Republic and Slovakia, we also provide dozens of local associations and charities with free beverages Thank you for your attention