1. By: Corey Leskanic, Mark Dowicz, Gabriella Grippa, DanielleTantillo

2. Letter to Shareholders Corey Leskanic (CEO)

3. Major Accomplishments 2012 Introduced 500-plus new products in 2012, including more than 100 low- and no-calorie choices Coca-Cola volume grew 3%-nearly 300 million unit cases (comparable to adding another Germany and two Russias) In 2012, we announced our new organizational structure of 3 operating businesses: Coca-Cola America, Coca-Cola International, and Bottle Investments Groups #1 Beverage company for environment, social, and governance performance by Goldman Sachs

4. 2012 vs. 2011 Revenue 2012 vs. 2011 decreased $222 million Net income Growth 2012 vs. 2011 Decreased $72 Million Stock Performance 2012 vs. 2011 $25.78 Dec. 30, 2011--- $31.73 Dec. 31, 2012 o increase 23%

5. 2013 Growth Opportunities Emphasize core brands (Coca-Cola, Coca- Cola Light, Diet Coke, Coca-Cola Zero) o Coca-Cola Light 6.5% volume growth (growth in physical volume of sales) o Most popular, big potential growth Natural Sweeteners (new consumer preference)- stevia w/ Sprite & Vitamin Water Environment- Bottling

6. Business Review Mark Dowicz (COO)

7. Business Review New Products:  Ayataka (Green Tea)  I Lohas (Water)  Partnership with JBF INdustries Ltd.  Zico Coconut Water  Dasani Drops  Odwalla Smoothie Refreshers New Markets:

8. Business Review (continued) Competition Pepsico, Inc. Nestle S.A. Dr. Pepper Snapple Group Inc. Regulatory or Legal Issues Workers sue based on discrimination Discontinue Membership at American Legislative Exchange Council

9. Business Review (continued) Risks: Lack of popularity of many products Changing health consciousness attitude Health issues Commodity costs are rising

10. Income Statement Gabriella Grippa (CFO)

12. Something to keep in mind... sales of products are seasonal 2nd and 3rd quarters account for higher unit sales Earn more than 60% of operating income during 2nd and 3rd quarters

13. Revenue (in millions) 20112012Percent Decrease $8,284$8,0622.68%

14. Why did the company's revenue go down? Customer marketing programs o allowances o coupon programs Result: reduction in net sales ($1.0 billion in 2011 and 2012) Unfavorable currency exchange rate changes, impact of volume decline, bottle and can net pricing per case growth, challenging operating conditions, ongoing macroeconomic weakness

15. Cost of Revenue (in millions) Payments to licensors for marketing programs = reduction in cost of sales 2012 packaging costs per case grew due to increase cost of key raw materials like sugar. 20112012Percent Decrease $5,254$5,1621.75%

16. Gross Margin Percentage & Expenses 20112012Percent Decrease 36.6%35.9%0.68% GDP 20112012 4.1% Operating Expenses

17. Operating Income (in millions) 20112012Percent Decrease $1,033$92810.2%

18. Operating Income (continued)

19. Taxes (in millions) Increase French excise tax on beverages w/ added sweetener Tax rate reductions in UK and Sweden Tax law change in Belgium 20112012Decrease $196$160$36 21%19%2%

20. Net Income (in millions) Charges totaling $85 million related to restructuring activities Net mark-to-market losses totaling $4 million Tax benefit of $62 million from tax rate reductions in UK and Sweden, and tax law change in Belgium. 20112012Percent Decrease $749$6779.6%

21. Earnings per Share (in millions) 2012 paid dividends of $187 million February 2012, increase dividend from $0.13 to $0.16 per share 20112012Percent Decrease $2.35$2.302.12%

22. Return on Investment (in millions) Became less efficient 20112012Decrease 10.4%8.8%1.6%

23. Balance Statement Danielle Tantillo (CFO)

24. Balance Sheet (continued)

25. Balance Sheet 20122011Up/ Down Current Assets2,7622,686Up Long Term Assets6,7486,408Up Current Liabilities2,5791,848Up Long Term Liabilities 4,2384,347Down Shareholders Equity2,6932,899Down Retained Earnings1,126638Up

26. Current Asset Cash increased (net income higher in 2011) Accounts Receivables (increased) Inventory- decreased 20122011 2,7622,686

27. Long Term Assets Property, Plant, and Equipment 20122011 6,7486,408

28. Long Term Assets (continued) Franchise License Intangible Assets and Goodwill 20122011 6,7486,408

29. Current Liabilities Accounts Payable and Accrued Expenses 20122011 2,5791,848

30. Current Liabilities Debt 20122011 2,5791,848

31. Long Term Liabilities Long Term Debt 20122011 4,2384,347

32. Shareholders Equity 339,064,025 shares of common stock Share Repurchases o 65 million shares (no more than $1.5 billion) o 2011: $1,014 million o 2012: $1,831 million 20122011 2,6932,899

33. Retained Earnings Dividends $187 million Increased net income Bought back more common stock o 2012: 1,831 o 2011: 1,014 20122011 1,126638

34. Key Ratios 20122011better/ worse Current Ratio1.071.45Worse Quick Ratio.921.24Worse Debt to Asset Ratio 36.5%33.12%Worse Time Covered Ratio 30.8535.65Worse Inventory Turnover13.3713.04Worse Days Sales Outstanding 53.2950.23Worse

35. Current Ratio 2012- current assets were barely larger than current liabilities o assets should be higher than liabilities o should be greater than one= IS NOT o the ratios show that at 1.07 in 2012 o Current debt increased $616 million dollars Ratio Interpretations

36. Quick Ratio Ability of current assets (without inventory) to cover the current liabilities. o Shows if coca-cola has the resources necessary to cover its current liabilities o Worse from 2011--> 1.24 to 0.92

37. Ratio Interpretations Debt to Asset Ratio Coca-cola's financial risk increased from 33.12% to 36.5% I o Increased debt over their assets o Debt increased by $616 million dollars. Times-Covered Ratio Decreased from 35.65 to 30.85 o Profits can still keep declining and they will still be able to meet interest charges

38. Ratio Interpretations Inventory Turnover Increased from 13.04 to 13.37 from 2011 to 2012 o cost of sales decrease from 2011 to 2012 o Inventory increased from 2011 to 2012. o Took longer to get rid of all the inventory Days Sales Outstanding Increased from 50.23 in 2011 to 53.29 in 2012 o Take longer to receive what customers owe