Coca-Cola Enterprises Inc. “ We are passionate about bringing the refreshment and enjoyment of Coca-Cola and all our brands to you, every day.” Annual Report 2004 2004 Annual Report Coca-Cola Enterprises Inc. 2500 Windy Ridge Parkway Atlanta, GA 30339 770 989-3000 www.cokecce.com Shareowner Information Stock Market Information Ticker Symbol: CCE Wall Street Journal Listing: CocaColaEnt Market Listed and Traded: New York Stock Exchange Shares Outstanding as of December 31, 2004: 469,650,931 Shareowners of Record as of December 31, 2004: 14,971 Quarterly Stock Prices Dividend Reinvestment and Cash Investment Plan Individuals interested in purchasing CCE stock and enrolling in the plan must purchase his/her initial share(s) through a bank or broker and have High Low Close 2004 those share(s) registered in his/her name. Our plan enables participants Fourth Quarter 22.23 18.46 20.85 to purchase additional shares without paying fees or commissions. Please Third Quarter 28.76 18.45 19.36 contact our transfer agent for a brochure, to enroll in the plan, or to request STRENGTH DEFINED Second Quarter 29.34 23.95 28.47 dividends be automatically deposited into a checking or savings account. First Quarter 24.50 20.90 24.31 We are the world’s largest marketer , and 2005 Dividend Information producer 2003 High Low Close Dividend Declaration* Mid-Feb. Mid-April Mid-July Mid-Oct. Fourth Quarter 22.72 18.53 21.87 Ex-Dividend Dates March 16 June 15 Sept. 15 Nov. 30 distributor of Coca-Cola products. Third Quarter 19.61 16.85 18.95 Record Dates March 18 June 17 Sept. 19 Dec. 2 Payment Dates April 1 July 1 Oct. 3 Dec. 15 • We distributed 2 billion physical cases or 42 billion bottles Second Quarter 20.41 18.40 18.68 First Quarter 23.30 17.75 18.69 *Dividend declaration is at the discretion of the board of directors and cans of our products in 2004 representing 21 percent Dividend rate for 2004: $0.16 annually ($0.04 quarterly) of The Coca-Cola Company’s volume worldwide. • We operate in 46 U.S. states and Canada – our territory encompasses approximately 80 percent of the North American population. Corporate Office Transfer Agent, Registrar and Environmental Policy Statement • We are the exclusive bottler for all of Belgium, continental Coca-Cola Enterprises Inc. Dividend Disbursing Agent Coca-Cola Enterprises is committed to France, Great Britain, Luxembourg, Monaco and the 2500 Windy Ridge Parkway American Stock Transfer & Trust Company working in our facilities, in our communi- Atlanta, GA 30339 ties, and with our suppliers, customers, and Netherlands. 59 Maiden Lane, Plaza Level 770 989-3000 New York, NY 10038 consumers to minimize the environmental • We employ 74,000 people. 800 418-4CCE (4223) impact of our operations, products, and • We operate 431 facilities, 54,000 vehicles and 2.4 million CCE Web Site Address (U.S. and Canada only) or packages. We use 100 percent recyclable vending machines, beverage dispensers and coolers. www.cokecce.com 718 921-8200 x6820 packaging throughout our company. • Our stock is traded on the New York Stock Exchange under Internet: www.amstock.com the “CCE” symbol. Company and Financial Information E-mail: [email protected] Corporate Governance Shareowner Relations Coca-Cola Enterprises is committed to Coca-Cola Enterprises Inc. Independent Auditors upholding the highest standards of corpo- P. O. Box 723040 Ernst & Young LLP rate governance. Full information about Financial Highlights Atlanta, GA 31139-0040 600 Peachtree Street, N.E. our governance objectives and policies, as Coca-Cola Enterprises Inc. 800 233-7210 or 770 989-3796 Suite 2800 well as our board of directors, committee Atlanta, GA 30308-2215 charters, and other data, is available on (In millions except per share data) 2004 2003 2002 Institutional Investor Inquiries 404 874-8300 our web site, www.cokecce.com. As Reported Investor Relations Net Operating Revenue $ 18,158 $ 17,330 $ 16,058 Coca-Cola Enterprises Inc. Annual Meeting of Shareowners Operating Income $ 1,436 $ 1,577 $ 1,364 P. O. Box 723040 Shareowners are invited to attend the Net Income to Common Shareowners $ 596 $ 674 $ 491 Atlanta, GA 31139-0040 2005 annual meeting of shareowners (a) Diluted Earnings Per Common Share $ 1.26 $ 1.46 $ 1.07 770 989-3246 to be held on Friday, April 29, 2005 at Portions of this report printed on recycled paper. Total Market Value(b) $ 9,792 $ 9,967 $ 9,767 10:30 a.m. ET at: © 2005 Coca-Cola Enterprises Inc. Hotel du Pont “Coca-Cola” is a trademark of The Coca-Cola Company. Designed and produced by Corporate Reports Inc./Atlanta. 11th and Market Streets www.corporatereport.com (a) Per share data calculated prior to rounding in millions. Wilmington, DE 19801 Primary photography by Flip Chalfant and John Madere. (b) As of December 31, 2004 based on common shares issued and outstanding. Coca-Cola Enterprises Inc. Focused on the Future Our Mission is to unite the passion of our people and the power of our brands to generate sustainable and profitable growth and improve financial returns by focusing our assets and alliances on innovation and customer relationships. Left: John R. Alm, President and Chief Executive Officer Right: Lowry F. Kline, Chairman of the Board Letter to Our Shareowners In 2004, the people of Coca-Cola Enterprises believe that our success in executing against External Factors worked through significant challenges to them is vital to our ability to drive sustainable A combination of marketplace factors generate strong free cash flow and substan- profit and volume growth. These objectives affected our 2004 performance. In Europe, tial operating and net income. Though results are the foundation of growth in our gross profit, net revenue per case grew 11⁄2 percent as were below our initial targets for the year, we operating income, and cash flow, as well as volume declined 41⁄2 percent. This decline made important progress in strengthening improved return on our invested capital. was due in part to the prolonged effects of our business for long-term profitability by In 2004, however, difficult market a cool, rainy summer as compared to the continuing to execute against our four key conditions in both North America and prolonged, extreme heat of 2003 that strategic objectives: Europe left full-year performance below our produced record volumes. Slowing retail initial expectations. Earnings per common Strengthening our brand portfolio; sales trends also affected volumes. share on a comparable basis reached $1.27, Fully leveraging our revenue management In North America, net revenue per case down 5 cents from a year ago, while capabilities; grew 3 percent, but volume declined 1 per- comparable operating income was slightly Continuing to build and improve our cent, affected by abnormally cool and wet down versus prior year.* We nevertheless customer relationships; weather, higher retail prices, and pressure achieved free cash flow, or cash from opera- Continuing to increase efficiency and on our sugared carbonated soft drink brands tions less capital spending, of $669 million, effectiveness in our operations. in the face of ongoing health and wellness funds that we used primarily to achieve our trends. North America endured a slowing We have highlighted these objectives in goal of strengthening our balance sheet retail environment during our peak summer past communications, and we continue to through continued debt reduction. *Please refer to page 24 for reconciliation of comparable operating information. 2 selling season that affected a wide range of revenue management. We are optimistic planned later in the year, we are well- consumer goods companies. that an enhanced, targeted approach to positioned to take full advantage of the market investment that places additional continuing growth in the diet category. Our Progress in 2004 emphasis on customized, local promotions robust innovation pipeline in North America Despite the impact of these events on our developed jointly with our customers will will also include the introduction of Dasani overall results in 2004, we made substan- effectively increase demand creation, which flavored waters as we work to provide tial progress in several key areas of our is a key element in achieving our volume plan. consumers with a lightly sweetened water company’s operations, strengthening our Also, we will benefit from a calendar filled alternative with no calories. Dasani has ability to achieve sustained, balanced volume with important innovation news that will become a recognized brand, and therefore and pricing growth in 2005 and beyond. enhance our ability to meet the changing offers an excellent platform for these brand For example, we: tastes of our consumers. The early 2005 extensions to generate profitable growth in introduction of Coca-Cola with Lime and Full the water category. Continued to leverage our revenue Throttle, a new energy drink, are important A renewed focus and repositioning of diet management processes, enabling us to additions to our portfolio that offer excellent and light brands is an essential part of our achieve revenue per case growth in both profit margins. 2005 plan in Europe as well. We will expand North America and Europe; We also will meet consumer health and Fanta light flavors and introduce Diet Coke Strengthened our alignment with our wellness concerns with important innovation with Lime. Most importantly, we continue to customers to generate mutually beneficial in the diet category that will enhance our work to improve consumer awareness of results. This was demonstrated by industry-leading diet soft drink portfolio. For Diet Coke and its characteristics. Even with important “vendor of the year” awards example, in late spring we will add Diet Coke the brand’s strong growth throughout Europe, from both Wal-Mart and Speedway Sweetened with Splenda®, an extension of there is a significant opportunity to expand Super America Stores; the Diet Coke brand that uses an increasingly awareness, since more than 40 percent of Implemented and enhanced key efficiency popular low calorie sweetener.