Coca Cola Içecek Anonim Sirketi : 2022 Interim Report - Second Quarter

COCA-COLA İÇECEK A.Ş.

INTERIM REPORT

as of June 30, 2022

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TABLE OF CONTENTS

COMMENTS FROM THE CEO, BURAK BAŞARIR ......................................................	3
ABOUT CCI.......................................................................................................................................	4
SHAREHOLDING STRUCTURE ............................................................................................	4
BOARD OF DIRECTORS...........................................................................................................	4
MANAGEMENT...............................................................................................................................	5
DEVELOPMENTS DURING THE PERIOD .......................................................................	5
SUBSEQUENT EVENTS.........................................................................................................	14
ADDITIONAL INFORMATION RELATED TO OPERATIONS...............................	16
SHAREHOLDERS' INFORMATION...................................................................................	18
SUBSIDIARIES ............................................................................................................................	19
FINANCIAL&OPERATIONAL PERFORMANCE REVIEW .....................................	20

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COMMENTS FROM THE CEO, BURAK BAŞARIR

Despite a volatile environment, we are pleased to deliver another successful set of results in the second quarter of 2022. We registered 25% reported and 15% organic volume growth on a consolidated basis, building on the first quarter's positive momentum across our markets. This performance was broad-based among our operations. Through leveraging our diverse brand portfolio with excellent execution capabilities, Türkiye's sales volume increased by 20%. This robust growth was achieved on the back of resilient at-home consumption and continued on- premise channel recovery. Cycling a strong 21% growth, the sales volume of international operations increased by 29% on a reported basis and by 13% on an organic basis. The newest member of our operations, Uzbekistan, continued its integration at full speed and achieved a stellar 29% volume growth. Pakistan, one of the fastest growing among our operations, registered a strong 18% increase thanks to the higher outlet reach, cooler placements, and strong recovery at on-premise and modern retail channels. This quarter's record results are a testament to CCI's relentless focus on executing effectively in volatile markets.

Notwithstanding the inflationary pressures across commodity, transportation and labor costs, strong volumes, favorable mix, timely price adjustments, well-managed hedging initiatives, and excellent opex management enabled us to mitigate margin pressures to some extent, and we delivered a 20% EBITDA margin in the second quarter.

As the year 2022 progresses, we will continue to support our consumers on various occasions in at-home channels with our diverse brand portfolio that we continuously innovate to satisfy evolving consumer needs. Our experience in managing challenging operating environments, execution capabilities and highly motivated people help us continue winning in the market.

We have almost complete coverage of commodities' supply for the second half of 2022. We ensured the sustainability of supply and started adding 2023 coverage using occasional opportunities in a highly volatile commodity market. However, the commodities in the year's second half come at a significantly higher cost than in the first half. Paired with the high fuel and transportation costs and other inflationary cost increases, they'll continue pressuring our margins. We will rely on timely pricing actions, efficient discount management, proactive RGM and disciplined spending to cope with the challenges ahead of us. As much as we are cautiously optimistic that with these measures we can deliver in line with our guidance, we still see some downside risk at the EBITDA margin and some upside potential at the topline.

Our Company's purpose is to create value for our stakeholders in everything we do, while placing sustainability at the center of our strategies. Serving to this purpose, we proudly published our second integrated report in its most straightforward, uncomplicated, and transparent form. Inspired by Rumi, our 2021 report's theme is "As We Are" and we are happy to share our achievements, areas of development, and pioneering initiatives with our stakeholders through our integrated Report. We build a better future for our customers & consumers, people and society by focusing on the acceleration of quality growth, leveraging our diverse portfolio. Within our digitally enabled omnichannel platforms, we will keep innovating our product pipeline to serve our consumers and respond to evolving preferences and consumption occasions. I sincerely thank our people for having an agile mindset and being highly motivated in this infinite journey as we dream and act to be the best FMCG player in our geographies.

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ABOUT CCI

CCI is a multinational beverage company which operates in Türkiye, Pakistan, Kazakhstan, Iraq, Uzbekistan, Azerbaijan, Kyrgyzstan, Jordan, Tajikistan, Turkmenistan, and Syria. As one of the key bottlers of the Coca-Cola system, CCI produces, distributes, and sells sparkling and still beverages of The Coca-Cola Company.

CCI employs around 10,000 people and has a total of 30 plants in 11 countries, offering a wide range of beverages to a consumer base of 430 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports and energy drinks, and iced teas.

CCI's shares are traded on the Istanbul Stock Exchange (BIST) under the symbol "CCOLA.IS".

SHAREHOLDING STRUCTURE

Anadolu Efes Biracılık ve Malt Sanayi A.Ş.	40.12%
The Coca-Cola Export Corporation	20.09%
Efes Pazarlama ve Dağıtım Ticaret A.Ş.	10.14%
Özgörkey Holding A.Ş.	1.53%
Publicly-traded	28.12%
	100.00%

The Articles of Association of our Company do not stipulate any privileges for the exercise of voting rights.

BOARD OF DIRECTORS

CCI has a Board of Directors consisting of 12 members, 4 of whom are independent. The Board Members, elected to the Board of Directors for 1 year at the Ordinary General Assembly Meeting, which was held on April 18, 2022 and in charge as of 30.06.2022 are as follows:

Tuncay Özilhan	Chairperson	(Non-executive)
Sedef Salıngan Şahin	Vice Chairperson	(Non-executive)
Tuğban İzzet Aksoy	Member	(Non-executive)
Kamilhan Süleyman Yazıcı	Member	(Non-executive)
Rasih Engin Akçakoca	Member	(Non-executive)
Agah Uğur	Member	(Non-executive)
Ahmet Boyacıoğlu	Member	(Non-executive)
Mehmet Hurşit Zorlu	Member	(Non-executive)
Lale Develioğlu	Member	(Independent)
Ali Galip Yorgancıoğlu	Member	(Independent)
Uğur Bayar	Member	(Independent)
Tayfun Bayazıt	Member	(Independent)

In 1H22, there arose no situation which revoked the independence of independent members of the Board of Directors.

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