SUSTAINABILITY REPORT 2018

MESSAGE FROM THE CEO

Burak Başarır

Coca-Cola İçecek, CEO

Dear Stakeholders,

It gives me great pleasure to report that 2018 has been another successful year for CCI with continued focus on quality growth, successful portfolio strategy and increased market share in almost all our markets. As a multinational beverage company with operations in 10 countries and 26 plants, and employing approximately 8,500 employees, as CCI, we are delighted to present our 11th Sustainability Report covering our 2018 performance.

Having been ranked as the second-largest bottler in 2018 in terms of the consumer base, we are serving a population of 400 million people in a geography of emerging markets with high growth potential and many opportunities for our business.

Being the sixth-largest bottler in the Coca-Cola System and one of the fastest growing bottlers with our operations in Turkey, the Middle East, Central Asia and Pakistan. Our sales volume went up by 6.3%, reaching 1.3 billion-unit cases, while our net sales revenue increased by 27% to ₺10.6 billion and our EBITDA by 36% to ₺1.9 billion.

By way of our growth, we are increasing both our direct and indirect economic impact each year. According to a recent economic review, each Turkish Lira generated by the Coca-Cola System in Turkey produces 9.7 Turkish Liras for the local economy, besides the indirect impact of income on 160,000 local farmers.

We aim to become the best FMCG company across our markets and we are committed to delivering sustainable and quality growth. All along our value chain, our pledge is to create value and transfer this value by being a good corporate citizen for our communities, being a great place to work for employees, being the preferred partner for our customers and offering choice to consumers.

To bring about the world in our vision, we are conscious that we need to internalize our sustainability approach and embed it into our principles for all our processes hence maximizing the value that we create. To this end, within the context of our sustainability report, we declare our goals, commitments and our practices in realizing this vision.

In order to amplify our positive impact, we place great emphasis on strategic partnerships such as UNGC, ILO, TUSIAD, ÇEVKO, HABITAT Association. Moreover, embracing and empowering cultural and gender diversity as well as strengthening the youngsters are other key pillars for our community development initiatives. Unleashing women’s entrepreneurial potential is an excellent way for communities to embrace gender diversity and prosperity. Our efforts focus on providing women in our geographies with more access to training courses, community programs, financial services and facilitate more connections with peers and mentors, for their development of business and generic skills. Consequently, they become a greater part of the global community and the labor force. As an indication of our pledge for this cause, we signed the Women’s Empowerment Principles (WEP) initiative in 2015.

We believe that a more sustainable future is only possible through involvement of the youth. With this vision, we continued our youth programs and reached more than 440,000 youngsters in 2018.

In order to realize our goal towards minimizing our environmental footprint, via our effective water management practices, we saved 434,527 m³ of water within our operating geography. Besides, our water replenishment rate reached to 159%, which is equivalent of 11,032 million liters of water.

Sustainable packaging programs such as the lightweight and short neck applications as well as the use of bio-resin in our PlantBottle projects and returnable bottle practices are of utmost importance to CCI for reducing environmental footprint. We are pledged to increase our post-consumer recycling rate, which is 56% in Turkey, for upcoming years via our strategic partnerships. We saved a total of 1,111 tons of resin and more than 98,000 tons of glass with the help of these practices in six countries of operation, hence decreased our GHG emission intensity. Through the improvements in our logistics operations, cooler emission reduction activities, use of smart technologies and our returnable glass bottle practice, we avoided 223,176 tons of CO2 which is equivalent to the amount absorbed by 18.6 million trees.

On behalf of all my colleagues at CCI, I would like to thank you for your feedback, contribution and support in making CCI’s journey towards sustainability more successful.