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. Reconciliation To GAAP Financial Information The following presentation includes certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule is posted on the Company's website at coca-cola.com (in the "investors" section) which reconciles the non-GAAP financial measures included in the following presentation to the most directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles. Coca-Cola North America Is Confident Of Success ● 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 A Key Part Of KO Unit Cases 2003Net Revenues 2003 Profit Before Tax 2003 North America North America North America 5.6 billion $6.3 billion $1.5 billion * 29% 30% 23% ** CCNA Is Committed To Being A Strong Contributor To KO’s Growth * PBT adjusted for streamlining charges. ** PBT percentage calculated excluding Corporate and adjusted for streamlining charges. CCNA Has Numerous Routes To Market Direct Store ChilledChilled // AmbientAmbient Delivery System WarehouseWarehouse SystemSystem CustomerCustomer ConsumerConsumer ChilledChilled DirectDirect StoreStore FoodserviceFoodservice && DeliveryDelivery SystemSystem HospitalityHospitality NetworkNetwork CCNA Is Aligned With Strong Bottling Partners Top 5 Bottlers Contribute Over 90% To CCNA Bottle & Can Unit Case Volume We Connect With Consumers Through Partners Coca-Cola North America Is Confident Of Success ● Strong System In North America ● Industry With Great Potential For Volume and Profit Growth ● Sharp Focus On Superior Execution Of System-Aligned Strategies We Are Seeing Positive Revenue Momentum In The Beverage Industry Total NARTD Beverage Industry 4 % Change In Retail $ +3.5% 3 +2.6% 2.6 2 1.1 1 1.5 0.9 0 2003 2004 YTD Price / Mix Volume Source: AC Nielsen All Measured Channels Through Feb. 2004 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 Our Industry Has An Opportunity For A Broader CSD Consumer Base Strong CSD Users Represent 20% of Households Yet Over 50% of CSD Consumption 100% 80% 48% 60% 80% 40% 52% 20% 20% 0% Consumption Pattern Contribution To Volume Light To Medium Users Strong Users Source: AC Nielsen Household Panel Restaurant Traffic Is Growing Again % Change Vs Prior Year 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '03 '04 Source: CREST Traffic Estimates We Are Successfully Building On Our Leadership Position CCNA Volume Share 50 44 1993 41 40 2003/2002* 30 25 23 17 18 14 6 0 0 CSDs Packaged Water Bottler Sports Drinks Tea & Coffee Delivered Juice Drinks * Latest Available Data Source: Beverage Digest U.S. Market Information Coca-Cola North America Is Confident Of Success ● Strong System In North America ● Industry With Great Potential For Volume and Profit Growth ● Sharp Focus On Superior Execution Of System-Aligned Strategies We Remain Committed To Our Winning Strategy Create Sustainable and Attractive System Growth and Profits Accelerate Profitably Create Accelerate CSDs Led By Grow Customer Integrated Coca-Cola TM Noncarb Value Operating and Diets Portfolio Model Consumer-Based Innovation A Results-Driven Team-Based, Inspired Organization Accelerate CSDs Led By Coca-Cola TM & Diets – A 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 Leverage Brand Strength With Unique Product Innovation ● 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 Diets Represent A Huge Opportunity 2700 Millions Of Unit Cases +4.0% +1.1% CAGR 1800 CAGR 900 +1.4% +4.3% CAGR CAGR 0 1997 2000 2003 KO Diet CSDs Rest Of Industry Diet CSDs Source: Beverage Digest U.S. Market Information Trend Is A Double-Positive For KO 1. KO Brand Strength In Diets - Share of Diet CSDs ~ 46% - Share of Diet Colas ~ 57% 2. Diet Coca-Cola Is More Profitable Compared To Coca-Cola Classic Source: Beverage Digest U.S. Market Information Packaging Innovation Drives Convenience & Availability Small PET Single12oz PET Fridge Pack 1 Liter Shrink Sleeve Entry & Trial Package Package To Sip Strong Consumer For Light/Medium Throughout The Day Package Personalized Consumers Out-Of-Home With A Relevant Theme Promotional Innovation Is Key To Profitable Acceleration of CSDs Dual Can Ad Week Compared To Average +3.8% +1.5% Volume Retail Dollars Dual Can Ad Strategy Drives Growth Of Both Volume & Price Realization Strategically Utilize Foodservice To Reach Consumers KO Brands Available In 370,000 Outlets 40% Incidence Maximize Consumer Connections Through Marketing Properties ● NCAA Promotional Material +36% Over Successful 2003 Event ● American Idol Attracting 30 Million Viewers Weekly - KO Sponsor Recognition +9% Above Prior Year ● Vending Machines In Red Lounge Selling 5-6 Times Average Realize Advantages Offered By Demographic Trends KO CSD Share – 2003 Hispanic Population As % Of Total America 35 Puerto Rico ~ 50% Central America & Mexico ~ 70% Caribbean Region ~ 50% 13 Brazil ~ 45% 2002 2050 Hispanic Consumers Spend $1 Trillion We Remain Committed To Our Winning Strategy Create Sustainable and Attractive System Growth and Profits Accelerate Profitably Create Accelerate CSDs Led By Grow Customer Integrated Coca-Cola TM Noncarb Value Operating and Diets Portfolio Model Consumer-Based Innovation A Results-Driven Team-Based, Inspired Organization Profitably Grow Noncarb Portfolio – A Winning Strategy ● Capture Opportunity In Single Serve Water Through Three-Tier Approach ● Consistently Support PowerAde ● Broaden Juice and Juice Drink Product Line Utilizing The Bottling System ● Continue To Strengthen Warehouse Juice Brands Capture Opportunity In Water With 3-Tier Approach Can’t Live Without It ● Category Is Big & Growing ● Single Serve Drives Value ● Category Falls Naturally Into Three Tiers: Image Adults With Moms With Conscious Active Children Consumers Lifestyle Profit Transaction Traffic Generator Builder Builder By Targeting Distinct User Bases, Retailers Realize Greater Value Retail Gross Margin Generated By Event $60 2X $40 ($000’s) Retailer Gross Margin $20 $XX.xx 2 / $XX.xx $XX.xx $0 Value Package Only Three Tier Ad Promotion Ad Promotion Consistently Support PowerAde 16 PowerAde Share of Sales 15.3 ShareShare +40%+40% SinceSince 20002000 12 10.9 8 2000 2001 2002 2003 Source: AC Nielsen All Measured Channels Broaden Juice & Juice Drinks With Our Bottlers CCNA Share of Sales 30 28.5 20 11.9 10 2000 2001 2002 2003 Source: AC Nielsen All Measured Channels #1 In Bottler-Delivered Juice Brands, Which Are 3 Times More Profitable Than Warehouse Juices Continue To Strengthen Warehouse Juice Brands ● Health And Wellness Leader ● Expand Availability Of Retail Packages In Foodservice We Remain Committed To Our Winning Strategy Create Sustainable and Attractive System Growth and Profits Accelerate Profitably Create Accelerate CSDs Led By Grow Customer Integrated Coca-Cola TM Noncarb Value Operating and Diets Portfolio Model