2006 Sustainability Report - Coca-Cola Amatil

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Our business Key Business Drivers (see 2006 Annual Report) 1. Grow our share of consumption of non-alcoholic beverages 2. Develop a material presence in premium alcoholic beverages 3. Grow our customer relationship capabilities 4. Develop world class operating systems 5. Ensure the sustainability of our business platform Change and expansion Since 2001 CCA has rapidly diversified its portfolio of products, growing both organically and through acquisitions. In that time, revenue generated from non-carbonated beverages and food has grown from 5% to 32% of total revenue. In the past five years acquisitions have included New Zealand’s Rio Beverages; Neverfail Springwater; Peats Ridge Springs and Palm Springs water companies; Quirk’s Refrigeration; Crusta Fruit Juices; Grinders Coffee; and SPCA, Australia’s largest producer of packaged ready to eat fruit and vegetable products. In 2006, CCA entered the premium alcoholic beverages sector with the formation of a joint venture company, Pacific Beverages, with SABMiller. Pacific Beverages began selling Peroni Nastro Azzurro, Miller Genuine Draft and Pilsner Urquell into the Australian market in October. CCA entered into an agreement with global spirits distributor Maxxium, to sell and distribute its premium brands, including Jim Beam, Remy Martin Cognac and ABSOLUT VODKA. In April 2007, CCA’s Adelaide operations at Thebarton began manufacturing Jim Beam ready-to-drink (RTD) brands, including Australia’s number one selling RTD, Jim Beam and Cola. 2006 Results Summary • Net profit, pre significant items, up 0.9% to $323.5 million • EBIT up 1.7% to $580.5 million • Beverage revenue increased 6.9% to $3.9 billion • Total revenue increased by 8.2% to $4.4 billion • Full year dividend has been increased by 3.2% to 32.5 cents per share, fully franked. • In the second half EBIT grew by 8.6%. Australia: delivered full year revenue growth of 7.7% on volume growth of 3% with EBIT of $433.9 million. The major impact was the increase in commodity costs with Australia successfully recovering close to $100 million in commodity driven cost increases. The cola category was a stand out with Coke trademark revenue growing by a record 9% driven mainly by the success of Coca-Cola Zero. New Zealand and Fiji: in local currency, New Zealand EBIT was broadly flat, with second half trading improving by 15%, driven by the success of Coca-Cola Zero and the launch of Powerade Isotonic. Fiji experienced a small decline in earnings for the year as a result of reduced consumer demand following political unrest in the country. South Korea: underlying earnings of $18.0 million were an improvement after a loss of $9.2 million in 2005. Indonesia and PNG: a full year EBIT of $17.6 million was a significant turnaround in profitability, thanks to a very strong second half. Second half earnings were $29.2 million, only marginally behind the record $30.6 million result achieved for the 2005 second half. SPC Ardmona: a strong result with EBIT of $46.2 million, which was ahead of expectations. The $15 million distribution centre opened in Shepparton in November and is expected to generate savings of more than $2 million per annum. 6
SOUTH KOREA PAPUA NEW GUINEA INDONESIA AUSTRALIA FIJI NEW ZEALAND 2006 Operating Review Carbonated Beverages Australia: a year after its launch in January 2006, Coca-Cola Zero has captured 13% of the cola category, driving CCA’s total cola market share up by two points, from 75% to 77%. The Coca-Cola trademark revenue grew by 9% in 2006 driven in part by the success of the new slimline cans and the 385ml screw top glass bottles. New Zealand and Fiji: Coca-Cola Zero was launched in New Zealand in January, and outsold diet Coke by September. Non-sugar cola volumes grew by 24% and represent 34% of cola volumes. South Korea: total volume declined by 4% mainly due to the product extortion event in July, which led to a product recall and negative media. Non Carbonated Beverages Australia: the segment delivered strong volume growth of 9%, and now accounts for 22% of CCA’s Australian volumes. Neverfail Springwater acquired the assets of Australia’s second largest bottled water business, Palm Springs. Both Mount Franklin and Pump grew volume around 15%. The launch of Powerade Isotonic drove volume growth of 25%. Goulburn Valley juice grew strongly and two Pumped flavoured waters, drove total Pump volumes over 20% in the second half of the year, becoming the number one and two selling functional flavoured waters. New Zealand and Fiji: Kiwi Blue water and Powerade both grew volume by more than 20%. Juice continued to improve in profitability. Indonesia and PNG: new products, including Frestea Frutcy, Frestea Green Tea and Powerade Isotonic boosted market share and improved revenue and EBIT mix of the product portfolio. South Korea: launches of Minute Maid flavour extensions, Haru Green Tea, and Powerade flavour extensions contributed to solid progress in the segment. Food SPC Ardmona: Goulburn Valley Fruit Snacks enjoyed solid growth. Cheap imported fruit and vegetables under private labels continue to put pressure on margins. Sites Queensland Richlands (Brisbane) – beverages NSW Smithfield (western Sydney) – beverages Northmead (western Sydney) – beverages Peats Ridge Springs – spring water Victoria Moorabbin (Melbourne) – beverages Bayswater (Melbourne) – beverages Mentone – distribution centre South Australia Thebarton (Adelaide) – beverages Waikerie – beverages Western Australia Kewdale (Perth) – beverages Indonesia Citibung Banjarbaru Medan Semarang Surabaya Bali Bandung Padang Lampung Makassar South Korea Yeoju Kwangju Yangsan Fiji Suva Papua New Guinea Lae New Zealand Auckland (2 sites) Christchurch (2 sites) Putaruru SPC Ardmona Shepparton Mooroopna Kyabram 7
Page 1 and 2: Citizenship@CCA Sustainability Repo
Page 3 and 4: Message from the Chairman David Gon
Page 5 and 6: Message from Group Managing Directo
Page 7: Workplace Community Our commitment:
Page 11 and 12: We Work with Others Australia • S
Page 13 and 14: Governance CCA has a commitment to
Page 15 and 16: PROTECTING WATER CATCHMENT HEALTH I
Page 17 and 18: Water We have made a number of oper
Page 19 and 20: In 2006 we worked with our customer
Page 21 and 22: Marketplace Principles • We are c
Page 23 and 24: Total kilojoules consumed from CCA
Page 25 and 26: Health and Safety Each country of o
Page 27 and 28: CCA Workplace Metrics - As at Septe
Page 29 and 30: BEAN AID SPCA was a primary sponsor
Page 31 and 32: • Helping supply clean water by l
Page 33 and 34: CCA Community Contribution 2006 Coc
Page 35 and 36: Glossary Coca-Cola Amatil (CCA): th

2006 Sustainability Report - Coca-Cola Amatil

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