2006 Shareholder News - Interim Report - Coca-Cola Amatil

September 2006SHAREHOLDERHighlights of Half Year 2006 Results$A million H1 2006 H1 2005 % ChangeTrading revenue - beverages 1,858.1 1,747.7 6.3%Volume (million unit cases) 297.9 303.4 (1.8%)Revenue per unit case $6.24 $5.76 8.3%Trading revenue - food 197.7 141.9 39.3%EBIT (before significant items) 251.2 267.4 (6.1%)Net profit (before significant items) 145.4 145.2 0.1%Significant items after tax (31.1) - n/aNet profit 114.3 145.2 (21.3%)EPS (before significant items) (cents) 19.4 19.8 (2.0%)EPS (cents) 15.3 19.8 (22.7%)Dividends per share (cents) 14.5 14.0 3.6%CCA delivered a net profit after tax for the halfyearof $145.4 million (before significant items),representing an increase of $0.2 million or 0.1%on the comparative half-year. The interimdividend has been increased by 3.6% to 14.5cents per share and is fully franked.CCA’s profit result has been delivered in aperiod of record commodity driven costincreases, deteriorating economic conditions inIndonesia, and greater levels of pricecompetition in Australia and New Zealand as aresult of the overwhelmingly positive consumerresponse to Coca-Cola Zero.Beverage revenue increased by 6.3%, or 8.3%on a per unit case basis, driven by priceincreases across the business, solid growthfrom Australia and a significant improvement inSouth Korean trading. The volume and EBITdecline was primarily driven by the performanceof the Indonesian business.The most significant impact on the first halftrading result was a $23.4 million reduction inearnings from Indonesia & PNG. The economicimpact of the removal of the government’s fuelsubsidy in Indonesia has been significant. Thefuel price increases in that country of over 160%have increased inflation and driven downdiscretionary spending and particularly demandfor consumer products and beverages.Despite the most difficult operating environmentCCA has had to contend with for many years,CCA has improved its market share in its majormarkets of Australia and South Korea. CCA hasaimed to achieve a balance between the needto recover abnormal commodity driven costincreases while maintaining the strong valueproposition our brands represent to ourcustomers and consumers.Successful launch of Coca-Cola ZeroThe highlight for the half has been theoutstanding success of Coca-Cola Zero, thebiggest beverage launch for CCA in 22 years. Inthe six months since its Australian launch,Coca-Cola Zero has captured 13% of the colacategory with combined Coca-Cola, diet Cokeand Coca-Cola Zero volumes growing by 9% inthe first six months, which is well ahead ofexpectations.

Impact of rising commodity pricesCommodity price increases have had asignificant impact on CCA’s manufacturing costbase. The increased cost of sugar, aluminiumand PET resin have driven increases of $83million in the cost of goods sold for ourbeverages, a 9% increase over the past 12months. Notwithstanding the pressure thecommodity cycle has placed on the business,CCA has been able to better manage itsportfolio to recover the cost of goods increasesin all markets except Indonesia.Significant itemsIn the first half, CCA reported significant itemsof $31.1 million relating primarily to an earlyretirement plan (ERP) in South Korea. The ERPresulted in a 10% reduction in the full timepermanent employee base and has materiallylowered the cost of doing business in SouthKorea.South Korean product recallThe South Korean business has made somegood progress and has been on track to returnto profits for the full year. Unfortunately a recallof product, resulting from an extortion threat,was made in early July. While the initial cost ofthe recall was not material, the trading outlookis now less certain and at this stage there maybe an impact of the recall on second half tradingwhich could negate a number of the costreduction initiatives delivered in the first half.Trading outlook for second half of 2006For the second half, CCA has a number of costreduction and revenue initiatives underway toimprove its earnings momentum. In addition, theimportant summer trading season in Australia isstill to come and at this point forecasts indicatea likely NPAT performance range of $312-325million (before significant items) for the 2006 fullyear.The three key issues for the second half of 2006will be how quickly the Indonesian economy andtrading environment improves, the impact ontrading in South Korea after the product recall,and lastly the recovery of the continuing highcommodity costs through price realisation andrevenue management. CCA will issue a furtherfull year profit and trading update to theAustralian Stock Exchange after its third quartertrading in early November.AustraliaThe highlight ofthe first sixmonths hasbeen theoutstandingsuccess ofCoca-Cola Zero.Another exciting development in the first half was the launch ofGoulburn Valley juice in the grocery channel. The 100% juiceoffering is leveraging the strong heritage of the Goulburn Valleybrand name into its first ever beverage offering.The major impacts on the first half profit result were acombination of commodity driven cost increases of over $50million, a volume shift to the lower margin supermarket channelduring the launch phase of Coca-Cola Zero and price increaseswhich were delayed until May.In the six months since its Australian launch,CCA’s total cola market share has grown from74% to 78%, well ahead of expectations.CCA’s non-carbonated beverages deliveredstrong volume growth of 8% and now accountfor almost 22% of CCA’s Australian volumes.Water led the growth with Mount Franklin andPump both growing volumes by around 15%.Powerade Isotonic, which was launched inMay, helped drive Powerade volume growth of28%.5004003002001000EBIT $M 1218H2H12002 2003 2004 2005 H1061 Before significant items

New Zealand & FijiCCA’s water and sports categoriesThe highlight for the six months was thecontinue to perform well with Kiwisuccessful launch of Coca-Cola Zero inBlue and Powerade both growingNew Zealand, with full year forecastvolume by more than 20%. Thejuice category continues tovolumes achieved by early June.capitalise on gains made in the last quarter of 2005, with revenueEBIT $M 1growing by 11%.100The major impacts on the first half profit result were lowervolumes as a result of softer demand for non-alcoholic ready-todrinkbeverages in New Zealand and higher levels of pricecompetition in key categories. In addition, approximately $5million of costs were incurred primarily in the write-off of facilitiesin preparation for the automated warehousing development.South KoreaThe South Koreanbusiness delivered asignificantly improvedearnings result with EBITincreasing nine-fold to$8.5 million 1 .Driving the profit resultfor the half were solidimprovements in pricingas well as furtherinnovation of the productportfolio.The launch of Coca-ColaZero has resulted in the stabilisation of trademark Coca-Cola -20volumes in South Korea. Non-sugar cola now represents 7% of cola volumes, up from 4% in the2005 half year, with Coca-Cola Zero selling similar volumes to Coke Light.The expansion into non-carbonated beverages continues with the successful launch of a greentea, Haru, as well as further Minute Maid flavour extensions.Indonesia & Papua New GuineaThe economic impact of the removal of the government’sfuel subsidy in Indonesia has been significant with fuel priceincreases of over 160% driving inflation as high as 18% andleading to a near doubling in interest rates over the last 12months. As a consequence, discretionary spending hasdeclined, with retail sales falling by nearly 20% since last year,significantly impacting the demand for consumer products andbeverages including CCA’s products. So after delivering a record$43 million in earnings in 2005, the region experienced a loss forthe first half.CCA launched new products Frestea Frutcy, Frestea Green Teaand Powerade Isotonic, which performed well in the half,boosting Indonesia’s overall market share.8060402008060402006040200-20EBIT $M 1EBIT $M 1312002 2003 2004 2005 H1068.52002 2003 2004 2005 H106-122002 2003 2004 2005 H106H2H1H2H1Indonesia experiencedthe most difficult tradingconditions since theAsian crisis in 1998.H2H11 Before significant items

SPC ArdmonaSPCA delivered a record result for the first half with EBIT of$20.2 million which was ahead of expectations. The fruitsnacks business continues to perform strongly and theinternational business continues to expand.The fruit snacks category has enjoyed the initial benefits of selling Goulburn Valley Fruit Snacks innew convenience packaging into the convenience and petroleum channel. In addition, the businessis capitalising on the trend to healthy eating options in the education channel with new advertisingand school based incentive programs.To improve our cost of manufacturing at SPCA, we have doubled our capital spend with:• the construction of a $15 million warehouse in Shepparton which will generate savings of $2million in 2007;EBIT $M60• a successful trial in optical grading of fruit that will be fully operationalin 2008, saving significant labour costs; and40H2• the commencement of processing fruit to bulk containers whichH120will be fully operational for the 2007 season. Bulk storage of20processed fruit will shorten the fruit processing season and provide 0the flexibility of being able to package fruit to order.2005 H106(10 months)SABMiller Joint VentureCCA has formed a joint venture with SABMiller, the world’s second largestbrewer, to sell and distribute imported premium beer in Australia – startingwith Peroni Nastro Azzurro, Pilsner Urquell and Miller Genuine Draft.The SABMiller premium brands fit well with our premium Hotels, Restaurantsand Cafés (HORECA) offering, further broadening our product and serviceoffering to the channel which already includes channel specific glass bottlepackaging, Grinders coffee, retro coolers and Quirks equipment service.CCA’s strong customer relationships, sales force capability and distributionreach, combined with SABMiller’s world-class marketing and technicalcapabilities make this a strong partnership.ContactsRegistered OfficeCoca-Cola Amatil71 Macquarie StreetSydney NSW 2000David WylieCompany SecretaryPh:(61) 132 653Investor RelationsCoca-Cola AmatilKristina DevonInvestor Relations ManagerPh:(612) 9259 6159Fx: (612) 9259 6614Aus_Investor_Relations@anz.ccamatil.comShare RegistryLink Market Services LimitedLocked Bag A14Sydney South NSW 1232Ph:(612) 8280 7121Fx: (612) 9261 8489registrars@linkmarketservices.com.auFor more information about Coca-Cola Amatil please visit our website atwww.ccamatil.comAmerican DepositaryReceipts (ADR)The Bank of New York - ADR620 Avenue of the AmericasNew York NY 10011 USAToll Free Ph:1 888 2692377shareowners@bankofny.comCoca-Cola Amatil Limited A.B.N. 26 004 139 397Produced by M.D.P. Milward Desktop Publishing (02) 9487 4415