OUR JOURNEY FORWARD 2015 ANNUAL REVIEW IN THIS ANNUAL REVIEW YOU’LL DISCOVER MILESTONES ALONG OUR JOURNEY— ontents C OF LE B A T ACCOMPLISHMENTS AND MOMENTS WE ARE PROUD TO SHARE WITH YOU. 2 Letter to Shareowners 26 Business Profile 5 Selected Financial Data 27 The Coca-Cola System 6 Highlights 28 Management 8 Taste the Feeling 29 Board of Directors 10 Celebrating 100 Years of the Coca-Cola Bottle 30 Shareowner Information 12 Our Global Workforce 31 Reconciliation of GAAP and Non-GAAP 14 Sustainability Financial Measures 15 Five Strategic Actions 32 Company Statements 33 Coca-Cola Journey 1 “Such a nice feeling when you #GIFtheFeeling” @krmayank13 LETTER TO SHAREOWNERS My Fellow Shareowners: Our Journey Forward accelerated in 2015, as we continued to collaborate closely with many partners to reinvigorate growth, increase profitability and deliver greater long-term, sustainable value to our system and shareowners like you. In short, we accomplished what we set out to do in 2015. And I give tremendous credit to my Coca-Cola colleagues around the world. This Annual Review shares their stories, as well as the stories behind the strong partnerships that bring our business to life in more than 200 countries every day: • Partnerships with consumers, who turn to us for simple moments of refreshment, uplift and togetherness more than 1.9 billion times a day. • Partnerships across our worldwide bottling system, which makes our beverages and ensures they’re in stores and restaurants and ready for purchase. • Partnerships with our valued customers—all the shops, non-media marketing spending. And we realized new eateries, theaters, theme parks and other outlets that supply chain efficiencies. sell our beverages. • Fourth, we streamlined and simplified our Company • And partnerships with other vital stakeholders, from by standardizing key processes, removing a layer of hareowners shareowners like you to all those we work with across functional management and connecting our regional S to the “golden triangle” of business, government and business units directly to headquarters. civil society. • Fifth, we took steps to refocus on our core business ETTER Last year, we reshaped our business for greater value model of building the world’s most‑loved beverage L creation by focusing on the five key actions we outlined brands and leading an unmatched global system of in late 2014. bottling partners. • First, we said we would establish clear portfolio roles In North America, we accelerated the sale of for our various markets around the world to drive Company-owned bottling territories to our franchise revenue and profit growth. And we did. Working bottling partners. In early 2016, we said we would with our bottling and customer partners, we gained completely refranchise our North American system by global value share and increased organic revenue year-end 2017. 4 percent.1 We also announced plans to form a unified new bottling In emerging markets, we focused on volume and partner in Western Europe. We took steps to improve building a foundation for long-term success. In our bottling system in Southern and East Africa and developing markets, we used a balance of volume and Indonesia. And, in early 2016, we unveiled plans to sell pricing. In developed markets, we emphasized price/ our Company-owned bottling operations in China to mix and smaller packages. And we added a revenue two existing bottling partners. metric to our incentive pay plans. LAST YEAR, WE RESHAPED OUR BUSINESS FOR GREATER VALUE CREATION BY FOCUSING ON THE FIVE KEY ACTIONS WE OUTLINED IN LATE 2014. • Second, we made disciplined investments in our With our partners, my Coca-Cola colleagues did a lot of brands and other growth opportunities. Together other outstanding work in 2015: with our global marketing and advertising partners, we invested in more and better marketing, including a “Taste the Feeling” and “One Brand.” Our marketing double-digit increase in spending on media advertising, teams and agency partners created “Taste the and we developed a new global marketing campaign for Feeling”—a new global marketing campaign for Trademark Coca-Cola. (More on this later.) Trademark Coca-Cola, including Coke, Diet Coke, Coke Zero and Coca-Cola Life. Launched in early 2016, the We closed on our strategic partnership with Monster campaign is part of a “one brand” strategy to link all Beverage Corporation, strengthening our position in the Coca-Cola variants more closely together. fast-growing energy category. With “Taste the Feeling,” we’re reminding people of the We invested in promising brands like Suja,2 a line of unmatched taste, uplift, refreshment and togetherness premium organic, cold-pressed juices. We agreed to that come with enjoying Coca-Cola. And we’re saying we acquire a brand of plant-based protein drinks, China have a Coke for everyone—with calories, fewer calories Green Culiangwang. And we expanded to nationwide or no calories, with or without caffeine, and so on. The the U.S. distribution of fairlife3 ultra-filtered milk in choice belongs to each consumer. tandem with our partners at Select Milk Producers. Coke Bottle 100. Our iconic Coca-Cola bottle turned • Third, we became more efficient and productive, 100 years young in 2015, and we created new value for reducing costs and reinvesting the savings. We customers and consumers with packaging, advertising implemented “zero-based work” to help our people and art exhibits celebrating this unmistakable symbol look closely at every resource decision. We reduced of refreshment. 1 See page 31 for a reconciliation of non-GAAP financial measures to our results as reported under accounting principles generally accepted in the United States. 2 Suja is a trademark of Suja Life, LLC. 3 fairlife is a trademark of Fairlife, LLC. 3 Innovation. We introduced new brands and packages to Based on last year’s success, we’re now further fit evolving consumer tastes. For example, we tripled to accelerating the pace of change as we become a company 27 the number of markets for Coca-Cola Life. We rolled focused squarely on building brands, creating value and out exciting new iterations of “Share a Coke” in many leading a worldwide system of bottling partners. markets. And we tested a new PlantBottle package that’s 100 percent made from plant material. Thank you for your interest and your investment in The Coca-Cola Company. These are exciting days, and Sustainability. We advanced our sustainability we’re honored to have you with us as we continue partnerships across our three focus areas of women, Our Journey Forward! water and well-being. I saw this firsthand this past year when I congratulated a group of women entrepreneurs graduating from a retail leadership program created with a government agency in the Philippines. Sincerely, We also announced that we expect to meet our goal of 100 percent water replenishment five years ahead of schedule. And we began to improve the way we build well-being with a renewed commitment to being part of Muhtar Kent the solution to obesity. Chairman of the Board of Directors and I’m proud of all that our people and partners did to Chief Executive Officer create incremental value last year. We did what we said we would do, and we successfully reshaped our business April 1, 2016 for more robust and sustainable growth. A STRONG AND DIVERSE BRAND PORTFOLIO As the global leader in both sparkling and still nonalcoholic ready-to-drink beverages, The Coca-Cola Company offers a robust portfolio of more than 500 brands, 20 of which generate $1 billion or more in annual retail sales. Ice Dew and smartwater became billion-dollar brands in 2015. SELECTED FINANCIAL DATA ata D INANCIAL F Year Ended December 31, 2015 2014 2013 ELECTED S (In millions except per share data) SUMMARY OF OPERATIONS Net operating revenues $44,294 $45,998 $46,854 Income before income taxes 9,605 9,325 11,477 Net income attributable to shareowners of The Coca-Cola Company 7,351 7,098 8,584 PER SHARE DATA Basic net income $1.69 $1.62 $1.94 Diluted net income 1.67 1.60 1.90 Cash dividends 1.32 1.22 1.12 BALANCE SHEET DATA Total assets $90,093 $92,023 $90,055 Long-term debt 28,407 19,063 19,154 UNIT CASE VOLUME GR0WTH NET OPERATING REVENUE GR0WTH1 2015 2% 2015 4% 2014 2% 2014 3% INCOME BEFORE INCOME TAXES GROWTH2 DILUTED NET INCOME PER SHARE GR0WTH3 2015 6% 2015 6% 2014 5% 2014 5% 1 2015 reflects organic growth and 2014 reflects comparable currency neutral growth after adjusting for structural items, which both differ from what is reported under GAAP. See page 31 for a reconciliation of non-GAAP financial measures to our results as reported under GAAP. 2 Reflects comparable currency neutral growth after adjusting for structural items, which differs from what is reported under GAAP. See page 31 for areconciliation of non-GAAP financial measures to our results as reported under GAAP. 3 Reflects comparable currency neutral growth, which differs from what is reported under GAAP. See page 31 for areconciliation of non-GAAP financial measures to our results as reported under GAAP. 5 200+ COUNTRIES PLANTBOTTLE 2.0 DEBUTS IN MILAN, ITALY ~250 BOTTLING PARTNERS 500+ BRANDS 700,000+ SYSTEM ASSOCIATES 24 MILLION CUSTOMER OUTLETS EXPANSION OF THE ALUMINUM BOTTLE AND OTHER PREMIUM PACKAGES FAIRLIFE MILK GOES NATIONWIDE IN THE UNITED STATES ighlights H MONSTER DEAL CLOSES INVESTMENT IN SUJA EXPANSION OF SMALL PACKS, MINI CANS CREATION OF “TASTE THE FEELING” CAMPAIGN NEW BILLION‑DOLLAR BRANDS: SMARTWATER AND ICE DEW 7 “No one can stop me when I #tastethefeeling, Nothing could ever bring me down!!!” Larry Pordicimo ighlights H TASTE THE FEELING In 2015, we put the finishing touches on our first new global advertising campaign in seven years.