Coca Cola Europacific Partners : 2021 Integrated Report

FURTHER

TOGETHER

2021 INTEGRATED REPORT AND FORM 20-F

COCA-COLA EUROPACIFIC PARTNERS - ONE OF THE WORLD'S LEADING CONSUMER GOODS COMPANIES.

MAKING, MOVING AND SELLING SOME OF THE WORLD'S MOST LOVED BRANDS.

None of the websites referred to in this Annual Report on Form 20-F for the year ended 31 December 2021 (the Form 20-F), including where a link is provided, nor any of the information contained on such websites, are incorporated by reference in the Form 20-F.

Coca-Cola Europacific Partners plc Registered in England & Wales, Company number 0971735

Contents

Strategic Report

2 Performance indicators

1. Conversation with our Chairman and CEO

1. Our portfolio
2. What we do and how we do it
3. Our operations

1. Our stakeholders

1. Section 172(1) statement from the Directors
2. Our strategy
3. Succeeding in a changing landscape
4. Sustainability - Action on
   20 Sustainability governance framework
   21 Task Force on Climate-related Financial Disclosures (TCFD)

1. Our people

1. Operating with integrity

1. Principal risks

1. Viability statement
2. Non-financialinformation statement
3. Business and financial review

Governance and Directors' Report

1. Chairman's introduction
2. Board of Directors
3. Directors' biographies

1. Senior management

1. Corporate governance report

1. Nomination Committee Chairman's letter
2. Nomination Committee report

1. Audit Committee Chairman's letter
2. Audit Committee report

1. Directors' remuneration report
   92 Statement from the Remuneration Committee Chairman
   94 Overview of remuneration policy
   95 Remuneration at a glance
   96 Annual report on remuneration

1. Directors' report

1. Directors' responsibilities statement

Financial Statements

1. Independent Auditor's reports

1. Consolidated financial statements

1. Notes to the consolidated financial statements

1. Company financial statements

1. Notes to the Company financial statements

Other Information

195 Risk factors

203 Other Group information

1. Form 20-F table of cross references

1. Exhibits

1. Glossary

1. Useful addresses
2. Forward-lookingstatements

Our purpose

REFRESH EUROPE, THE PACIFIC

AND INDONESIA - GREAT BEVERAGES,

GREAT SERVICES, GREAT PEOPLE.

DONE SUSTAINABLY FOR A BETTER

SHARED FUTURE.

Solid track record of delivery and execution

Leading portfolio of products and brands within a large and growing category

Aspiring to be the world's most digitised bottler

Solid balance sheet, strong free cash flow generation

Great, value creating API acquisitition

Highly engaged, talented & skilled workforce

Even stronger strategic relationship with The Coca-Cola Company

Leading sustainability agenda

2

Strategic Report

Governance and Directors' Report

Financial Statements

Other Information

Performance indicators

Coca-Cola Europacific Partners plc | 2021 Integrated Report and Form 20-F

Financial

Data legend

Europe (€m)

2020 2021

API (€m)

2020 2021

*Due to the significance of the Coca-Cola Amatil (CCL) acquisition during the year, revenue, comparable operating profit and ROIC have been presented on a pro forma basis to provide investors with relevant information about the combined Group. Refer to Business and Financial Review on pages 50-63 for a reconciliation of our IFRS reported results to the pro forma financial information and non-GAAP performance measures.

Key highlight

+7.5%

pro forma comparable

Fx neutral revenue

Revenue on a pro forma comparable basis*

€14.8bn

The revenue increase was driven by a 4.5% increase in pro forma comparable volume, reflecting the reopening of the away from home channel and increased consumer mobility given the easing of COVID-19 restrictions. Solid trading in the home channel continued, benefitting from increased at home occasions as well as continued growth in online grocery.

Pro forma comparable

Fx neutral revenue per unit case grew by 3.0%, reflecting positive pack and channel mix following the reopenings in the away from home channel, positive brand mix and favourable underlying rate.

Europe (€m)

€10,606m

€11,584m

API (€m)

€2,929m

Operating profit on a pro forma comparable basis*

€1.9bn

Pro forma comparable operating profit increased by 26.0%, reflecting the increased revenue. This increase in topline growth was moderated by an increase in variable expenses given higher volumes, as well as commodity inflation and higher concentrate costs. This was partially offset by structural efficiencies from Europe's Accelerate Competitiveness and API's Fighting Fit programmes, as well as combination benefits and our continuous efforts on discretionary spend optimisation.

Europe (€m)

€1,194m

€1,500m

API (€m)

€301m

€386m

Diluted earnings per share (EPS) on a comparable basis*

€2.83

Comparable diluted EPS increased by 57% driven by the increase in comparable operating profit.

Free cash flow*

€1.5bn

Despite the challenging backdrop and continued investments in our portfolio, people, sustainability initiatives and digital capabilities, we generated nearly €1.5 billion of free cash flow. This highlights the strength of our free cash flow generation, supported

by our disciplined capital expenditure and working capital improvement initiatives.

Pro forma return on invested capital (ROIC)* (%)

8.0%

ROIC remains a high priority for us and we will continue to focus on driving profitable revenue growth, capital efficiencies and creating value from the Acquisition of CCL.

€3,235m

3

Strategic Report

Governance and Directors' Report

Financial Statements

Other Information

Coca-Cola Europacific Partners plc | 2021 Integrated Report and Form 20-F

Performance indicators

CONTINUED

Sustainability

Data legend

Europe

2020 2021

API(A)

2020 2021

For more about our sustainability commitments and progress, see pages 18-36

Key

AU Australia

ID Indonesia

NZ New Zealand

1. The acquisition of API completed on 10 May 2021. The API sustainability metrics are presented on a full year basis for 2021 and 2020 to allow for better period over period comparability.
2. Our baseline year is 2019, following the approval of our new science based GHG emissions reduction target in 2020, in line with SBTi guidance. To analyse progress over a longer period, we also disclose a 2010 baseline year.
3. 2020 data has been restated due to more accurate data becoming available.
4. This covers all products including water, juice and dairy, excluding products that contain alcohol.
5. This excludes the amount of water used for the production of products that contain alcohol.

Safety

Total incident rate (number per 100 full time equivalent employees)

Europe

1.16

1.11

API

0.88

0.75

When it comes to our people, suppliers, contractors and visitors, safety is vitally important. Tragically, we saw four employee fatalities during 2021; one in Belgium and three in Indonesia. The incidents were investigated with the local authorities and we continue to improve our safety procedures to prevent recurrence.

We are working towards world class safety standards and our Health, Safety and Mental Wellbeing policy ensures we are working to adopt best practices. We aim to reduce our total incident rate to below 1 by 2025.

GHG emissions

• GHG emissions reduction across our value chain(B)

Europe(C)

Versus 2010

38.1

38.9

Versus 2019

11.4

12.4

We take seriously the responsibility to reduce our greenhouse gas (GHG) emissions, to mitigate climate change and to protect the future of our planet.

In Europe, we have a clear ambition to reduce our GHG emissions across our entire value chain by 30% by 2030 (versus 2019) and to reach net zero GHG emissions by 2040. Our GHG emissions reduction target is approved by the Science Based Targets initiative (SBTi) as being in line with

a 1.5°C reduction pathway.

In 2022, we will set a new science based emissions reduction target, including our API territories.

Sugar reduction

• sugar reduction in our soft drinks since 2015

Europe

15.3

17.9

API(D)

	11.2	AU
	14.9	AU
	17.2	ID
		20.9	ID
	9.3		NZ
	13.4	NZ

Concern about the health consequences of obesity, particularly among young people, is increasing. Health authorities, such as the World Health Organisation, and international governments are introducing regulations to control sugar consumption.

Together with The Coca-Cola Company (TCCC) and other franchisors, we are committed to meeting consumers' demands for a greater variety of drinks, including low and no calorie options. We will do this by reformulating our recipes and by providing greater choice, with and without sugar.

Water

Water use ratio (litres of water/ litre of product produced)

Europe

1.57

1.58

API(E)

1.84

1.75

Water is an essential resource for our business. It is the main ingredient in many of our products and is also essential for our manufacturing processes, and for the agricultural ingredients we depend upon.

Climate change is altering weather patterns around the world, causing water shortages and droughts in some areas and floods in others.

We are committed to addressing these challenges by reducing our own water consumption on a continual basis and protecting local water sources in partnership with local communities.

Packaging - Recycled plastic

% of PET used that is rPET Europe

41.3

52.9

API

			58.2	AU
			59.8	AU
	39.2		NZ
		42.3		NZ

Extreme waste and pollution, particularly plastic and packaging waste, is a global issue. Packaging represents approximately 40% of our total value chain carbon footprint and we are taking action to drive down the carbon footprint of packaging as part of our path to achieving zero waste and net zero GHG emissions.

We aim to achieve this through the key pillars of our packaging strategy: removing unnecessary packaging; innovating in refillable and dispensed solutions; achieving 100% collection so that packaging can be recycled and reused; and by increasing the recycled content of our packaging.