Executing a Winning Strategy in North America

Executing A Winning Strategy In North America

Don Knauss President and Chief Operating Officer Coca-Cola North America March 2004 Forward Looking Statements The following 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, changes in economic and political conditions; changes in the non-alcoholic beverages business environment, including actions of competitors and changes in consumer preferences; product boycotts; foreign currency and interest rate fluctuations; adverse weather conditions; the effectiveness of our advertising and marketing programs; fluctuations in the cost and availability of raw materials or necessary services; our ability to avoid production output disruptions; our ability to achieve earnings forecasts; our ability to effectively align ourselves with our bottling system; regulatory and legal changes; our ability to penetrate developing and emerging markets; litigation uncertainties; and other risks discussed in our Company's filings with the Securities and Exchange Commission (the "SEC"), including our Annual Report on Form 10-K, which filings are available from the SEC. 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. d in Regulation res" as define le financial measures calculated on the Company's website at he non-GAAP financial measures unting Principles. rally Accepted Acco n to the most directly comparab certain "non-GAAP financial measu t of 1934. A schedule is posted rs" section) which reconciles t coca-cola.com (in the "investo included in the following presentatio and presented in accordance with Gene G under the Securities Exchange Ac The following presentation includes Reconciliation To GAAP Financial Information Strong System In North America Industry With Great Potential For Volume and Profit Growth Sharp Focus On Superior Execution Of System-Aligned Strategies ● ● ●

Coca-Cola North America Is Confident Of Success 23% ** $1.5 billion * North America 30% $6.3 billion North America ed for streamlining charges. Net Revenues 2003 Contributor To KO’s Growth excluding Corporate and adjust 29% CCNA Is Committed To Being A Strong 5.6 billion North America Unit Cases 2003 Profit Before Tax 2003 * PBT adjusted for streamlining charges. ** PBT percentage calculated Coca-Cola North America Is A Key Part Of KO Foodservice & Foodservice & Hospitality Network Hospitality Network Chilled / Ambient Chilled / Ambient Warehouse System Warehouse System Customer Customer Consumer Consumer Direct Store Direct Store Delivery System Delivery System Delivery System Delivery System Chilled Direct Store Chilled Direct Store

CCNA Has Numerous Routes To Market Top 5 Bottlers Contribute Over 90% To CCNA Bottle & Can Unit Case Volume

CCNA Is Aligned With Strong Bottling Partners We Connect With Consumers Through Partners Strong System In North America Industry With Great Potential For Volume and Profit Growth Sharp Focus On Superior Execution Of System-Aligned Strategies ● ● ●

Coca-Cola North America Is Confident Of Success Price / Mix Volume 2.6 0.9 +3.5% d Channels Through Feb. 2004 1.1 1.5 2003 2004 YTD +2.6% % Change In Retail $ Total NARTD Beverage Industry 4 3 2 1 0

We Are Seeing Positive Revenue Momentum In The Beverage Industry Source: AC Nielsen All Measure We Are Seeing Positive Revenue Momentum In The Beverage Industry Total NARTD Beverage Industry CSD Industry 4 % Change In Retail $ +3.5% +3.4%

3 +2.6%

2.6 +1.9% 2 1.1 2.9

1 1.9 1.5 0.9 0.5 0 2003 2004 YTD 2003 2004 YTD Price / Mix Volume Source: AC Nielsen All Measured Channels Through Feb. 2004 48% 52% Over 50% of CSD Consumption 80% 20% Strong CSD Users Represent 20% of Households Yet Light To Medium UsersLight To Medium Strong Users Consumption PatternConsumption To Volume Contribution n Household Panel 0% 80% 60% 40% 20% 100%

Our Industry Has An Opportunity For A Broader CSD Consumer Base Source: AC Nielse Restaurant Traffic Is Growing Again

% Change Vs Prior Year

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '03 '04

Source: CREST Traffic Estimates 30 18 1993 2003/2002* 17 6 Sports DrinksSports Coffee Tea & 40 Drinks 23 Delivered Juice Delivered 14 0 44 CSDs Water Packaged Bottler 41 CCNA Volume Share 0 50 25

We Are Successfully Building On Our Leadership Position Source: Beverage Digest U.S. Market Information * Latest Available Data Strong System In North America Industry With Great Potential For Volume and Profit Growth Sharp Focus On Superior Execution Of System-Aligned Strategies ● ● ●

Coca-Cola North America Is Confident Of Success Model Operating Integrated Accelerate Value Create Customer Grow Consumer-Based Innovation Noncarb Portfolio System Growth and Profits Profitably Create Sustainable and Attractive A Results-Driven Team-Based, Inspired Organization and Diets Accelerate CSDs Led By Coca-Cola TM

We Remain Committed To Our Winning Strategy Leverage Brand Strength With Unique Product, Package, and Promotional Innovation Strategically Utilize Foodservice To Reach and Connect With Consumers Maximize Consumer Connections Through Marketing Properties Realize Advantages Offered By Demographic Trends ● ● ● ● Accelerate CSDs Led By Coca-Cola TM & Diets – Winning Strategy A Outperformed Competitors In The Cola Category - 2 Point Share Swing 2003 Vs. 2001 Diet Coke With Lime Is Well Above Our Expectations Trademark Sprite +7% In 2003 Due To Success Of Sprite Remix Tropical Sprite Remix Berry Clear Available April 1 ● ● ● ●

Leverage Brand Strength With Unique Product Innovation +4.3% CAGR +4.0% CAGR Rest Of Industry Diet CSDs +1.1% CAGR +1.4% CAGR KO Diet CSDs 1997 2000 2003 U.S. Market Information Millions Of Unit Cases 0

Diets Represent A Huge Opportunity 900 2700 1800 Source: Beverage Digest U.S. Market Information Share of Diet CSDs ~ 46% Share of Diet Colas ~ 57% - - Profitable Compared To Coca-Cola Classic 1. KO Brand Strength In Diets 2. Diet Coca-Cola Is More Trend Is A Double-Positive For KO Source: Beverage Digest Strong Consumer Package Personalized With A Relevant Theme Package To Sip Throughout The Day Out-Of-Home 12oz PET Fridge Pack Small PET Single 1 Liter Shrink Sleeve Entry & Trial Package For Light/Medium Consumers

Packaging Innovation Drives Convenience & Availability +3.8% Dual Can Ad Week +1.5% Volume Retail Dollars Compared To Average Of Both Volume & Price Realization

Promotional Innovation Is Key To Profitable Acceleration of CSDs Dual Can Ad Strategy Drives Growth 40% Incidence 370,000 Outlets KO Brands Available In

Strategically Utilize Foodservice To Reach Consumers KO Sponsor Recognition +9% Above Prior Year - Vending Machines In Red Lounge Selling 5-6 Times Average NCAA Promotional Material +36% Over Successful 2003 Event American Idol Attracting 30 Million Viewers Weekly ● ● ●

Maximize Consumer Connections Through Marketing Properties Brazil ~ 45% 2003 2003 – – Central America & Caribbean Region ~ 50% Puerto Rico ~ 50% KO CSD Share KO CSD Share Mexico ~ 70% 35 Spend $1 Trillion Spend $1 Trillion 13 2002 2050 Hispanic Consumers Hispanic Consumers

Realize Advantages Offered By Demographic Trends Hispanic Population As % Of Total America Model Operating Integrated Accelerate Value Create Customer Grow Consumer-Based Innovation Noncarb Portfolio System Growth and Profits Profitably Create Sustainable and Attractive A Results-Driven Team-Based, Inspired Organization and Diets Accelerate CSDs Led By Coca-Cola TM

We Remain Committed To Our Winning Strategy Capture Opportunity In Single Serve Water Through Three-Tier Approach Consistently Support PowerAde Broaden Juice and Drink Product Line Utilizing The Bottling System Continue To Strengthen Warehouse Juice Brands ● ● ● ●

Profitably Grow Noncarb Portfolio – Winning A Strategy Traffic Builder Children Moms With Active Builder Lifestyle Adults With Transaction Can’t Live Without It Profit Image Category Is Big & Growing Single Serve Drives Value Category Falls Naturally Into Three Tiers: Generator Conscious Consumers ● ● ●

Capture Opportunity In Water With 3-Tier Approach $XX.xx 2 / $XX.xx $XX.xx Three Tier Ad Promotion 2X Retail Gross Margin Generated By Event Ad Promotion Value Package Only $0

$60 $40 $20

($000’s) By Targeting Distinct User Bases, Retailers Realize Greater Value Margin Gross Retailer Since 2000 Since 2000 Share +40% Share +40% 15.3 10.9 2000 2001 2002 2003 PowerAde Share of Sales 8 16 12

Consistently Support PowerAde Source: AC Nielsen All Measured Channels 28.5 ands, Which Are 3 Times More Profitable Than Warehouse Juices CCNA Share of Sales 11.9 2000 2001 2002 2003 #1 In Bottler-Delivered Juice Br

Broaden Juice & Drinks With Our Bottlers Source: AC Nielsen All Measured Channels 30 20 10 Health And Wellness Leader Expand Availability Of Retail Packages In Foodservice ● ● Continue To Strengthen Warehouse Juice Brands Model Operating Integrated Accelerate Value Create Customer Grow Consumer-Based Innovation Noncarb Portfolio System Growth and Profits Profitably Create Sustainable and Attractive A Results-Driven Team-Based, Inspired Organization and Diets Accelerate CSDs Led By Coca-Cola TM

We Remain Committed To Our Winning Strategy Accelerate The Category Profitably Differentiate My Store Take Waste Out Of The Supply Chain 1. 2. 3. Customers Tell Us: Create Customer Value – Winning A Strategy Advance Ship Notice RFID Customer Analysis & Reporting Systems Take Waste Out ● ● ● Retailtainment Rapid Expansion Of Licensed Merchandise In-Store Excitement ● ● Quarterly Planning Revenue Management Stores Emphasizing 20oz & ½ 24 Pack Liter

In 2003, Our Winning Strategy To Create Value Was Recognized Grow Category ● ● ● Take Waste Out In-Store Excitement

Providing Beverage Solutions In Partnership With McDonald's Grow Category Model Operating Integrated Accelerate Value Create Customer Grow Consumer-Based Innovation Noncarb Portfolio System Growth and Profits Profitably Create Sustainable and Attractive A Results-Driven Team-Based, Inspired Organization and Diets Accelerate CSDs Led By Coca-Cola TM

We Remain Committed To Our Winning Strategy Canada Emerging Beverages Juices, Teas, Juices, Legal, Strategy & Planning Marketing Bottler Bottler Delivered Beverages Supply Chain, Finance, IT, HR, Foodservice Hydration Integrated Into One Strategic Business Unit Maintaining P&L Accountability Of Each Business Unit Common Approach To Building Brands Across The Organization Leveraging Scale Across Support Functions, Leading To Greater Brand Support ● ● ● ● Accelerate The Integrated Operating Model – Winning Strategy A Model Operating Integrated Accelerate Value Create Customer re Tax Growth of 6% To 8% Grow Consumer-Based Innovation Noncarb Portfolio System Growth and Profits Profitably Create Sustainable and Attractive A Results-Driven Team-Based, Inspired Organization and Diets Accelerate Our Goal: Long-Term Profit Befo CSDs Led By Coca-Cola TM

We Remain Committed To Our Winning Strategy 11% To 12% KO’s Long-Term Earnings Growth Model of Strong System In North America Industry With Great Potential For Growth Sharp Focus On Superior Execution of System-Aligned Strategies CCNA Is Committed To Favorably Contributing ● ● ● Coca-Cola North America Is Confident Of Success