Coca- Cola Hellenic Bottling Company S.A. Annual Report 2009 Annual Report 2009 Coca-Cola Hellenic Table of Contents A. Independent Auditor’s Report B. Consolidated Financial Statements Consolidated Balance Sheet……………………………………………………….………………..… 1 Consolidated Income Statement….…...……………………………………………………...………. 2 Consolidated Statement of Comprehensive Income………………………………………….…….. 3 Consolidated Statement of Changes in Equity.…….……………..……………............................. 4 Consolidated Cash Flow Statement.…………………………………………………………………. 5 C. Notes to the Consolidated Financial Statements 1. Basis of preparation and accounting policies………………………………………………….... 6 2. Exchange rates………………………………………………………………………….……….... 19 3. Segmental analysis……………………………………………………………………………..… 19 4. Intangibles assets………………………………………………………………………….……… 22 5. Property, plant and equipment ………………………………………………………................ 24 6. Equity method investments ……………………………………………………………………... 26 7. Available-for-sale financial assets …………………………………………………………….... 27 8. Financial instruments …………………………………………………………………................ 27 9. Deferred tax …………………………………………………………………………………….… 32 10. Other non-current assets ……………………………………………………………………...… 34 11. Inventories ……………………………………………………………………………………….... 34 12. Trade and other receivables …………………………………………………………………….. 34 13. Cash and cash equivalents …………………………………………………………………….... 35 14. Borrowings………………………………………………………………..................................... 36 15. Trade and other payables …………………………………………………………………..….... 40 16. Provisions …………………………………………………………………………….………….... 40 17. Share capital and share premium ………………………………….……...………………….... 44 18. Reserves …………………………………………...…………….............................................. 45 19. Total operating costs…………….…………………………………...……………..................... 46 20. Finance costs …………………………………...………………………………………………... 48 21. Tax………………………………………………………………………………………………….. 48 22. Earnings per share ……………………………………………………………………………….. 49 23. Components of other comprehensive income …………………………………….................. 49 24. Shares held for equity compensation plan …………………………………………………….. 49 25. Stock option compensation plans …………………………………………………………….… 50 26. Stock appreciation rights ………………………………………………………………………… 51 27. Business combinations ………………………………………………………………………..… 53 28. Dividends ………………………………………………………………….……………………… 54 29. Financial risk management …………………...………………………………………………… 54 30. Contingencies ………………………………………………………………………..…………… 60 31. Commitments ……………………………………………………………………………………... 61 32. Directors’ and senior management remuneration……………………………………………... 61 33. Related party transactions …………………...…………………………………..……………… 61 34. List of principal Group companies …………..……………………………….…………………. 64 35. Joint ventures ……………………………………………………………...……………………... 65 Independent Auditor’s Report To the Shareholders of “Coca-Cola Hellenic Bottling Company S.A.” We have audited the accompanying consolidated financial statements of Coca-Cola Hellenic Bottling Company S.A. and its subsidiaries which comprise the consolidated balance sheet as of 31 December 2009 and the consolidated income statement, statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and International Financial Reporting Standards as adopted by the European Union, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Coca-Cola Hellenic Bottling Company S.A. and its subsidiaries as of 31 December 2009, and their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Coca-Cola Hellenic Bottling Company S.A. and its subsidiaries as of 31 December 2009, and their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union. 29 March 2010 268 Kifissias Avenue, 152 32 Halandri , Greece Annual Report 2009 Coca-Cola Hellenic Consolidated Balance Sheet As at 31 December 2009 2008 Note € million € million Assets Intangible assets 4 1,874.1 1,918.0 Property, plant and equipment 5 2,961.3 2,994.2 Equity method investments 6 36.2 38.8 Available-for-sale financial assets 7 17.7 15.3 Interest rate swap contracts 8 71.9 104.4 Deferred tax assets 9 29.6 29.3 Other non-current assets 10 57.5 40.4 Total non-current assets 5,048.3 5,140.4 Inventories 11 425.1 475.5 Trade receivables 12 830.6 789.8 Other receivables 12 232.3 346.4 Derivative assets 8 11.6 25.4 Current tax assets 16.9 19.7 Cash and cash equivalents 13 232.0 724.6 Total current assets 1,748.5 2,381.4 Total assets 6,796.8 7,521.8 Liabilities Short-term borrowings 14 307.0 921.3 Trade payables 15 308.0 408.0 Other payables 15 961.3 904.2 Current tax liabilities 66.3 41.1 Total current liabilities 1,642 .6 2,274.6 Long-term borrowings 14 2,100.6 1,893.3 Cross-currency swap contracts 8 175.4 159.7 Deferred tax liabilities 9 142.3 134.4 Non-current provisions 16 129.6 119.0 Other non-current liabilities 10.4 10.0 Total non-current liabilities 2,558.3 2,316.4 Total liabilities 4,200.9 4,591.0 Equity Share capital 17 182.8 182.7 Share premium 17 1,113.8 1,665.0 Treasury shares 18 (14.9 ) - Exchange equalisation reserve 18 (309.1 ) (191.9) Other reserves 18 368.8 366.7 Retained earnings 1,151.8 818.2 Equity attributable to owners of the parent 2,493.2 2,840.7 Non-controlling interests 102.7 90.1 Total equity 2,595.9 2,930.8 Total equity and liabilities 6,796.8 7,521.8 The Notes on pages 6 – 66 are an integral part of these consolidated financial statements Page 1 of 66 Annual Report 2009 Coca-Cola Hellenic Consolidated Income Statement Year ended 31 December 2009 2008 Note € million € million Net sales revenue 3 6,543.6 6,980.7 Cost of goods sold (3,905.5 ) (4,169.6 ) Gross profit 2,638.1 2,811.1 Operating expenses 19 (1,987.2 ) (2,151.7 ) Impairment of intangible assets 4,19 - (189.0 ) Restructuring costs 19 (44.9 ) - Other items 19 32.8 (15.8 ) Operating profit 3 638.8 454.6 Finance income 9.4 16.9 Finance costs (82.2 ) (125.3 ) Finance costs, net 20 (72.8 ) (108.4 ) Share of results of equity method investments 6 (1.9 ) 0.1 Profit before tax 564.1 346.3 Tax 3,21 (142.5 ) (106.4 ) Profit after tax 421.6 239.9 Attributable to: Owners of the parent 399.2 227.6 Non-controlling interests 22.4 12.3 421.6 239.9 Basic and diluted earnings per share (€) 22 1.09 0.62 . The Notes on pages 6 – 66 are an integral part of these consolidated financial statements Page 2 of 66 Annual Repor t 2009 Coca-Cola Hellenic Consolidated Statement of Comprehensive Income Year ended 31 December 2009 2008 € million € million Profit after tax 421.6 239.9 Other comprehensive income: Available-for-sale financial assets: Valuation losses during the year (0.1 ) (7.7 ) Valuation losses / (gains) reclassified to profit and loss for the year 6.5 6.4 (4.8 ) (12.5 ) Cash flow hedges: Amounts of (losses) / gains during the year (6.4 ) 14.4 Amounts of (gains) / losses reclassified to profit and loss for the year (9.7 ) (16.1 ) 1.3 15.7 Foreign currency translation (79.5 ) (289.2 ) Share of other comprehensive income of equity method investments (0.7 ) (2.2 ) Income tax relating to components of other comprehensive income