We Are Stronger Together

WE ARE STRONGER TOGETHER 2020 INTEGRATED ANNUAL REPORT WE ARE STRONGER TOGETHER As a multinational beverage company operating engaged in efforts in which we take pride in line across 10 countries, we strive to create sustainable with our responsibility to hand down a better value in every step of our value chain. In 2020, world to the future. During this challenging period, when the pandemic had a profound impact on the with a perspective that holds the community and entire world, we launched with our motto “Stronger employee health above everything else, we met Together” our practices that create value for our the needs of the community on the one hand and employees, our stakeholders, and the communities took steps to ensure the welfare of our employees in which we operate. We emphasized on the on the other. We planned our production, sales value of the strength of acting together with our and distribution operations in accordance with the ecosystem, our stakeholders, our employees and needs of our customers, supported local markets our consumers. and retailers as well as everyone we provide services. Our struggle and strong collaboration With the healing power of being and acting during this challenging year was exemplary. We together that reflects on each and every one of overcame this period by learning new things, us, we successfully ended 2020, on which the positive thinking, rapid and meticulous action, and Covid-19 pandemic made its mark. As the CCI the power of unity. Family, we navigated the rough seas and overcame the challenges together. We came out of the crisis As a company that provides services to more together as one team. We said “Stronger Together” than 400 million consumers across 10 countries and supported our community, valued our also including Turkey, we continue to take the employees, and always stood by our customers and necessary measures for continuous service and the consumers and never gave up on our sustainability welfare of our employees in the geography where targets. For we believe that the sustainability of we operate and take them further depending on our operations and our communities are very the developments. We achieve our goals thanks closely linked. With this belief, we continued to to our employees, who unite with the spirit of a place our sustainability approach at the heart of single team. As one of the biggest bottlers in the our operations. Across the geographies where Coca-Cola system, we are “Stronger Together” in we have a presence, we continued to minimize 2021, too. With our robust leadership infrastructure, our environmental impact and generate less strong brands and productive business model, we waste, reduce our total carbon footprint, increase will continue to create value and grow with all our energy efficiency and expand the scope of our employees, stakeholders and consumers. water management efforts. This year, too, we have 1 2020 INTEGRATED ANNUAL REPORT Table of Contents 01 03 05 CHAPTER 1: AN OVERVIEW OF CCI 3 CHAPTER 3: OUR VALUE CREATION APPROACH 65 CHAPTER 5: FINANCIAL EVALUATION 198 ABOUT OUR REPORT 4 OUR VALUE CREATION MODEL 66 OPERATIONAL PERFORMANCE 199 CHAIRMAN’S MESSAGE 6 CREATING VALUE FOR OUR CUSTOMERS FINANCIAL PERFORMANCE 201 MESSAGE FROM THE CEO 8 AND CONSUMERS 67 EXPECTATIONS FOR 2021 204 INDEPENDENT AUDITOR'S REPORT 210 CCI AT A GLANCE 10 CONSOLIDATED FINANCIAL CHARTS 216 Our Vision 10 CONSUMER HEALTH 67 Corporate Values 10 Product Safety and Quality 67 What We Do? Our Value Chain Chart 12 Total Beverage Portfolio 68 Brands 13 Operating Geography 15 CUSTOMER VALUE 77 Superior Execution 77 Key Financial and Operational Indicators 17 Excellence in the Supply Chain 85 Key Highlights 18 06 Awards 21 CREATING VALUE FOR OUR EMPLOYEES 88 CHAPTER 6: ANNEXES 295 HUMAN RIGHTS 88 CCI REPORTING GUIDE 296 OUR INTEGRATED GOVERNANCE APPROACH 26 Human Rights Across the Value Chain 88 Fundamental Definitions 296 Milestones 26 Occupational Health and Safety 92 Scope of Reporting 296 Memberships and Cooperation 28 Diversity and Inclusion 97 Data Preparation 297 Integrated Governance 35 Risk Management 37 HUMAN CAPITAL 101 MANAGEMENT SYSTEMS STANDARDS AND PRINCIPLES 300 Ethics Management 40 Talent Management 101 INDEPENDENT ASSURANCE 301 Employee Engagement 108 Stakeholder Engagement 42 Independent Assurance Declaration 301 Materiality Analysis 46 CREATING VALUE FOR THE COMMUNITY 112 INDEPENDENT VERIFICATION 302 Material Sustainability Topics 48 COMMUNITY DEVELOPMENT 112 Scope of Verification for Greenhouse Gases in Turkey 303 Economic Impact 112 GHG Emissions Verification Declaration 303 Community Investments 113 Our Aıd Operatıons Durıng The Covıd-19 Pandemıc 119 SUSTAINABILITY PERFORMANCE INDICATORS 304 Volunteerism 120 Human Rights 304 02 Occupational Health and Safety 305 CHAPTER 2: FUTURE OUTLOOK 49 ENVIRONMENTAL FOOTPRINT 121 Human Capital 309 OUR ACTIONS AGAINST THE COVID-19 PANDEMIC 50 Energy Management and Climate Protection 126 Economic Impact 328 OUR OPERATING ENVIRONMENT 52 Sustainable Packaging 134 Community Development 328 RISKS AND OPPORTUNITIES 53 Water Management 138 Environmental Footprint 329 OUR STRATEGIC PRIORITIES FOR 2021 TO 2023 63 Sustainable Packaging 340 CREATING VALUE FOR OUR INVESTORS 142 Water Management 346 Sustainable Growth 142 ADDITIONAL REMARKS ON THE BIST 350 The Environment 350 Governance 366 Matters Relating to Stakeholders 367 04 CONTENT INDICES 368 CHAPTER 4: CORPORATE GOVERNANCE 144 GRI Standards Content Index 368 BOARD OF DIRECTORS 145 Sürdürülebilirlik İlkeleri Uyum Çerçevesi İçerik Endeksi 376 DECLARATIONS OF INDEPENDENCE 151 UN Global Compact (UNGC) Content Index 384 SENIOR MANAGEMENT 155 Women’s Empowerment Principles (WEPs) Content Index 384 TABLE ON PARTNERSHIP 161 TABLE ON SHAREHOLDING 161 CONTACTS ADDITIONAL INFORMATION ON OUR OPERATIONS 162 ADDITIONAL INFORMATION ON CORPORATE GOVERNANCE 167 2 2020 ENTEGRE RAPORU AN OVERVIEW OF CCI 3 01 2020 INTEGRATED ANNUAL REPORT An Overview Of CCI GRI 102-45, 102-46, 102-49 About Our Report About Our REPORT At CCI, we consider the current output of the sustainability reports Verification SOMETHING MISSING? we have published to date, and of our activities within the framework of our plans and targets for the future and our As with our Sustainability Reports, published since 2009, selected data approach towards sustainability. And so, for the 2020-2021 reporting from our first integrated annual report has been independently audited. period we particularly excited and proud of the publication of our first GHG emissions generated by CCI Turkey’s production, sale and distribution integrated annual report in which we share a holistic assessment of our activities in 2020 have been inspected and verified by a third-party financial and non-financial performance and our forward-looking strategy. organization to meet ISO 14064-1 requirements as per the ISO 14064-3 2006 With this report, an integrated thinking approach has been adopted with Standard. The independent financial audit was carried out according to respect to the way we carry out our activities. Independent Audit Standards published by the Capital Market Board and In this report, we share our investments, targets and practices, as well as the Independent Audit Standards (IAS), a part of the Turkish Audit Standards the performance results we have achieved for the period from 1 January published by the Public Oversight, Accounting and Auditing Standards to 31 December 2020 for nine of the ten countries in which we operate Authority (KGK). CCI Turkey's operations have successfully passed the audits. (Turkey, Jordan, Azerbaijan, Kazakhstan, Pakistan, Kyrgyzstan, Tajikistan, In accordance with Articles 514 and 516 of Turkish Commercial Code No. 6102 Turkmenistan and Iraq). The scope of the 2020 integrated annual report (TCC) and Communique No. II-14.1 “On the Principles Governing Financial has covered 100% of CCI’s total production volume. Reporting in the Capital Market” (Communique) published by the Capital Market Board (CMB), CCI Group Management is responsible, with respect to the integrated annual report, for preparing and submitting to the general Reporting Standards assembly the integrated annual report within three months following the This report was prepared in accordance with GRI Standards: Basic option and balance sheet date, and for preparing the report in a manner that reflects the International Integrated Reporting Framework. As recommended in the the group’s flow of operations for that year and its consolidated financial Integrated Reporting Framework published by the International Integrated statement in all its aspects, in an accurate, complete, direct, realistic and Reporting Council (IIRC), the connections between priority issues, business honest manner. Other responsibilities relating to Ethical Rules and other strategy and performance for 2020 have been drawn. ethics-related responsibilities under legislation have been carried out by the The report also reflects our communications on progress relating to the independent audit company with which we work. The Independent Audit United Nations Global Compact Communication on Progress (COP) and provided an opinion on whether the consolidated financial data included in United Nations Women’s Empowerment Principles (WEPs). The principles the annual report within the framework of the provisions of the TCC and the of materiality, inclusivity and responsiveness of the AA1000 Assurance Communique, and the examinations performed by the Board of Directors Standard have

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