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Annual Report 2020 Table of Contents

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Annual Report 2020 Table of Contents . This version of consolidated annual report has not been prepared in a single electronic reporting format (“the ESEF“) and represents unofficial version of the official consolidated annual report published in accordance with ESEF in XHTML format. The Company made all the steps to ensure this version fully corresponds with the original version, except for usage of machine readable XBRL tagging, which are included only in the official XHTML version. In case of any difference in the presented information, opinions or interpretations the official version in XHTML format is legally binding. The official consolidated annual report prepared in ESEF format is accessible on the following link: https://investor.kofola.cz A-0 A. BOARD OF DIRECTORS REPORT ...................................................................................................................................... A-0 KOFOLA AT A GLANCE ............................................................................................................................................... A-4 CHAIRMAN´S STATEMENT ........................................................................................................................................ A-9 KOFOLA GROUP ...................................................................................................................................................... A-10 3.1. Kofola ČeskoSlovensko .................................................................................................................................. A-10 3.2. Kofola Group ................................................................................................................................................. A-10 3.3. Group structure ............................................................................................................................................. A-11 3.4. Successes and Awards in 2020 ...................................................................................................................... A-12 BUSINESS OVERVIEW AND OTHER MATTERS ......................................................................................................... A-13 4.1. Business overview ......................................................................................................................................... A-13 4.2. Auditors remuneration.................................................................................................................................. A-23 4.3. Intellectual property and licences ................................................................................................................. A-23 4.4. Research and development and other information ...................................................................................... A-24 4.5. Technology and production and other non-current assets ........................................................................... A-24 4.6. Additions to property, plant and equipment and intangibles and their condition ....................................... A-24 4.7. Capital sources .............................................................................................................................................. A-25 4.8. Regulatory environment ............................................................................................................................... A-25 4.9. COVID-19 ....................................................................................................................................................... A-25 4.10. Subsequent events ........................................................................................................................................ A-26 RISK MANAGEMENT ............................................................................................................................................... A-27 5.1. Principal risks faced by the Group ................................................................................................................. A-27 5.2. Approach to market trends and development .............................................................................................. A-34 NON-FINANCIAL INFORMATION ............................................................................................................................. A-35 6.1. Non-financial information ............................................................................................................................. A-35 CORPORATE GOVERNANCE .................................................................................................................................... A-50 7.1. Shares and shareholders ............................................................................................................................... A-50 7.2. Information pursuant to Capital Markets Act section 118.5a-k .................................................................... A-51 7.3. Corporate governance code .......................................................................................................................... A-55 7.4. Statutory bodies ............................................................................................................................................ A-55 7.5. Description of diversity policy applied to governance bodies ....................................................................... A-66 7.6. Financial reporting process ........................................................................................................................... A-67 REPORT ON RELATIONS .......................................................................................................................................... A-68 8.1. Structure of relations between related parties and the description of the entities ..................................... A-68 8.2. Structure of relations and ownership interests between related entities as at 31 December 2020 ............ A-70 8.3. Role of the controlled entity in the organisational structure ........................................................................ A-70 8.4. Method and means of control ...................................................................................................................... A-70 8.5. List of acts with value exceeding 10% of equity of controlled entity ............................................................ A-71 8.6. List of mutual contracts between controlled entity and controlling entity or between controlled entities . A-71 8.7. Assessment of whether the controlled entity suffered a loss and of its settlement ..................................... A-75 8.8. Assessment of advantages and disadvantages arising from relations between related entities .................. A-75 STATUTORY DECLARATION ..................................................................................................................................... A-76 INDEPENDENT AUDITOR´S REPORT ........................................................................................................................ A-77 A-1 Consolidate d annual report 2020 Table of contents B. CONSOLIDATED FINANCIAL STATEMENTS ...................................................................................................................... B-0 CONSOLIDATED FINANCIAL STATEMENTS ................................................................................................................ B-1 1.1. Consolidated statement of profit or loss ........................................................................................................ B-1 1.2. Consolidated statement of other comprehensive income .............................................................................. B-2 1.3. Consolidated statement of financial position ................................................................................................. B-3 1.4. Consolidated statement of cash flows ............................................................................................................ B-4 1.5. Consolidated statement of changes in equity ................................................................................................. B-5 GENERAL INFORMATION .......................................................................................................................................... B-7 2.1. Corporate information .................................................................................................................................... B-7 2.2. Group structure ............................................................................................................................................... B-8 SIGNIFICANT ACCOUNTING POLICIES ....................................................................................................................... B-9 3.1. Statement of compliance and basis of preparation ........................................................................................ B-9 3.2. Functional and presentation currency ............................................................................................................ B-9 3.3. Foreign currency translation ........................................................................................................................... B-9 3.4. Consolidation methods ................................................................................................................................. B-10 3.5. Accounting
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