Coca Cola Içecek Anonim Sirketi : 9M21 Interim Report

COCA-COLA İÇECEK A.Ş.

INTERIM REPORT

as of September 30, 2021

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TABLE OF CONTENTS

COMMENTS FROM THE CEO, BURAK BAŞARIR ......................................................	2
ABOUT CCI .......................................................................................................................................	3
SHAREHOLDING STRUCTURE ............................................................................................	3
BOARD OF DIRECTORS ...........................................................................................................	3
MANAGEMENT ...............................................................................................................................	4
DEVELOPMENTS DURING THE PERIOD .......................................................................	5
SUBSEQUENT EVENTS .........................................................................................................	15
ADDITIONAL INFORMATION RELATED TO OPERATIONS ...............................	16
SHAREHOLDERS' INFORMATION ...................................................................................	18
SUBSIDIARIES.............................................................................................................................	19
FINANCIAL&OPERATIONAL PERFORMANCE REVIEW......................................	20

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COMMENTS FROM THE CEO, BURAK BAŞARIR

CCI's results in the third quarter reflect the continued business momentum across our operations. We are happy to deliver the highest ever quarterly sales volume, solid topline performance, and healthy margins. On top of 11% volume growth on a yearly basis, our net sales revenue per unit case on an FX neutral basis grew by 14%. Despite upward price trends in global commodity markets and supply-side bottlenecks, we managed to deliver strong profit growth and margins in 3Q21.

Our business benefited from the increased mobility and eased restrictions as vaccinations gathered pace in most of our key markets during the quarter.

Having hedged the majority of our commodity needs for 2021, the pressure of high commodity prices on our cost base was limited. Despite cycling a very strong quarter of 3Q20, where CCI recorded its highest margin in history, our EBITDA increased by 17% with a 24% margin in the third quarter of 2021, still significantly above historical averages. As guided before, the margin contraction is due to the unsustainably high base of the last year. As we continue to navigate the pandemic environment, we are fully on track to deliver in line with the guidance and the quality growth algorithm in 2021, thanks to our brands, adaptive business model, prudent financial policy, and agile mindset.

Turkey operation had a very successful quarter, achieving the highest summer season sales. This was delivered by the relentless focus on serving consumer needs, excellence in execution, and digitizing customer relationships. Favorable weather conditions and partial recovery in the tourism sector were other positive contributors. Volume grew 15% in the third quarter. Revenue growth management initiatives and improving channel mix with recovery at on-premise outlets contributed to the robust topline performance in Turkey.

On the international front, we recorded 9% volume growth in 3Q21. Pakistan continued building on its sound infrastructure and grew 8% in the quarter on the back of higher outlet penetration, improved route to market capabilities, better execution, and effective promotion management. Smooth execution of price adjustments and refreshment summer offerings assisted healthy topline growth in Pakistan. Central Asia operations maintained strong momentum with double-digit volume growth mainly driven by Kazakhstan, Azerbaijan, and Kyrgyzstan.

As we move towards the year-end, some of the headwinds continue impacting our operations. The Covid- 19 variants and the increasing number of cases in our countries create uncertainties for the rest of the year, especially in the upcoming winter. The upward price trends in global commodity markets resulting from strong demand and supply-side bottlenecks lead to a higher cost environment and continue to put pressure on margins. However, we are confident to deliver in line with our 2021 guidance as we continue to exercise financial discipline, tight opex management, along with raw material hedging initiatives taken throughout the pandemic. We expect to face cost pressures on our 2022 margins resulting from higher commodity prices. We work on various mitigation plans to sustain our profitable growth, including but not limited to RGM initiatives, widening our supplier base, strong collaboration within the Coke system, and locking in physical & financial commodity hedges where possible. Leveraging learnings from the pandemic period, we focus on lean portfolio management and the generation of cash flows for the rest of the year.

As of the 29th of September, we completed the Uzbekistan acquisition, and we are excited to consolidate it to our operations. We believe the country offers significant growth potential. Integration work is proceeding at full speed. By the end of the year, we expect to provide more precise guidance on this new business's impact on our consolidated results.

As the pace of recovery among our markets motivates us, we continue to keep our cautious stance while having full confidence in the strong potential of our business and the strength of our people. We will continue to act as One Team, strive to create value for all our stakeholders, and keep working for a healthy, sustainable, and profitable future at CCI.

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ABOUT CCI

CCI is a multinational beverage company which operates in Turkey, Pakistan, Kazakhstan, Iraq, Uzbekistan, Azerbaijan, Kyrgyzstan, Jordan, Tajikistan, Turkmenistan, and Syria. As one of the key bottlers of the Coca-Cola system, CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company.

CCI employs close to 10,000 people and has a total of 29 plants in 11 countries, offering a wide range of beverages to a consumer base of 430 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports drinks, energy drinks and iced teas.

CCI's shares are traded on the Istanbul Stock Exchange (BIST) under the symbol "CCOLA.IS", and Eurobond is traded in the Irish Stock Exchange, under the symbol "CCOLAT.

SHAREHOLDING STRUCTURE

Anadolu Efes Biracılık ve Malt Sanayi A.Ş.	40.12%
The Coca-Cola Export Corporation	20.09%
Efes Pazarlama ve Dağıtım Ticaret A.Ş.	10.14%
Özgörkey Holding A.Ş.	1.53%
Publicly-traded	28.12%
	100.00%

The Articles of Association of our Company do not stipulate any privileges for the exercise of voting rights.

BOARD OF DIRECTORS

CCI has a Board of Directors consisting of 12 members, 4 of whom are independent. The Board Members, elected to the Board of Directors for 1 year at the Ordinary General Assembly Meeting which was held on April 29, 2021 and in charge as of 30.09.2021 are as follows:

Tuncay Özilhan	Chairman	(Non-executive)
Sedef Salıngan Şahin	Vice Chairman	(Non-executive)
Tuğban İzzet Aksoy	Member	(Non-executive)
Kamilhan Süleyman Yazıcı	Member	(Non-executive)
Kamil Ömer Bozer	Member	(Non-executive)
Agah Uğur	Member	(Non-executive)
Ahmet Boyacıoğlu	Member	(Non-executive)
Mehmet Hurşit Zorlu	Member	(Non-executive)
İzzet Karaca	Member	(Independent)
Ali Galip Yorgancıoğlu	Member	(Independent)
Uğur Bayar	Member	(Independent)
Tayfun Bayazıt	Member	(Independent)

In 9M21, there arose no situation which revoked the independence of independent members of the Board of Directors.

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Committees established under the Board

There are three committees active under CCI's Board of Directors: Audit Committee, Corporate Governance Committee and Risk Detection Committee. According to the Board of Directors resolution dated 29.04.2021, the members of the Committees are as below:

	Independent Member	Executive Member
Audit Committee
İzzet Karaca - Chairman	Yes	No
Tayfun Bayazıt - Member	Yes	No
Corporate Governance Committee
Uğur Bayar - Chairman	Yes	No
M. Hurşit Zorlu - Member	No	No
Kamil Ömer Bozer - Member	No	No
R. Yılmaz Argüden - Member*	No	No
Çiçek Uşaklıgil Özgüneş - Member*	No	Yes
Risk Detection Committee
Ali Galip Yorgancıoğlu - Chairman	Yes	No
Agah Uğur- Member	No	No
Tuğban İzzet Aksoy - Member	No	No
*Not a board member

		MANAGEMENT
	Name-Surname	Title
	Burak Başarır	Chief Executive Officer
	Andriy Avramenko	Chief Financial Officer
	Kerem Kerimoğlu	Supply Chain Director
	Ebru Özgen	Human Resources Director
	Rüştü Ertuğrul Onur	General Counsel
	Ahmet Öztürk	Internal Audit Director
	Tugay Keskin	Chief Operating Officer
	Leyla Deliç	Chief Information and Digital Officer
	Servet Yıldırım	Corporate Affairs Director

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