Coca Cola : Margin Analysis Schedule Q2 2022

Q2 2022 MARGIN ANALYSIS

July 26, 2022

RECONCILIATION TO U.S. GAAP FINANCIAL INFORMATION

The following presentation includes certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule which reconciles our results as reported under Generally Accepted Accounting Principles and the non-GAAP financial measures included in the following presentation is attached as an appendix hereto.

Q2 2022 MARGIN ANALYSIS

CONSOLIDATED GROSS MARGIN

•

		Operating segment mix headwind of ~(60bps)
		driven by relative outperformance in our lower
62.6%	~(120bps)	margin, finished goods BIG segment versus our
geographic operating segments.

61.4%	~(90bps)		•
	~(40bps)	~(120bps)
		59.0%	~(160bps)
			57.3%
			•
	~(250bps)

2Q21 GAAP	Items	2Q21	Underlying	Currency Acquisitions/	2Q22	Items	2Q22 GAAP
	Impacting	Comparable		Divestitures/	Comparable	Impacting
	Comparability (Non-GAAP)		Structural	(Non-GAAP) Comparability

KEY TAKEAWAYS

Items impacting comparability in the current yearprimarily relate to economic hedging activities.

Underlyinggross margin contracted by ~(90 bps), driven by negative segment mix and higher incremental input costs, partially offset by pricing initiatives and favorable channel and package mix.

The acquisitionheadwind was due to the acquisition of the finished goods BodyArmor business.

Note: Numbers may not add due to rounding.

2

YTD 2022 MARGIN ANALYSIS

CONSOLIDATED GROSS MARGIN

•

Operating segment mix headwind of ~(20bps) driven by relative outperformance in our lower margin, finished goods BIG segment versus our geographic operating segments.

61.9%	~(90bps)				•
	61.0%	~(20bps)	~(40bps)
			~(110bps)
			59.3%	~(20bps)	59.1%
					•
			~(170bps)

YTD21 GAAP	Items	YTD21	Underlying	Currency Acquisitions/	YTD22	Items	YTD22 GAAP
	Impacting	Comparable		Divestitures/	Comparable	Impacting
	Comparability (Non-GAAP)		Structural	(Non-GAAP) Comparability

KEY TAKEAWAYS

Items impacting comparability in the current yearprimarily relate to economic hedging activities.

Underlyinggross margin contracted by ~(20 bps), driven by negative segment mix and higher incremental input costs, partially offset by pricing initiatives and favorable channel and package mix.

The acquisitionheadwind was due to the acquisition of the finished goods BodyArmor business.

Note: Numbers may not add due to rounding.

3

Q2 2022 MARGIN ANALYSIS

CONSOLIDATED OPERATING MARGIN

Operating segment mix headwind of ~(40bps)	•
driven by relative outperformance in our lower
margin, finished goods BIG segment versus our
geographic operating segments.

~190bps	31.7%	~40bps	~(40bps)	~(100bps)
29.8%				30.7%	~(1,000bps)		•
27.2%						20.7%	•
			~(110bps)

2Q21 GAAP	Items	2Q21	Underlying	Currency Acquisitions/	2Q22	Items	2Q22 GAAP
	Impacting	Comparable		Divestitures/	Comparable	Impacting
	Comparability (Non-GAAP)		Structural	(Non-GAAP) Comparability

KEY TAKEAWAYS

Items impacting comparability in the current yearprimarily relate to transaction gains & losses and economic hedging activities.

Underlyingoperating margin expanded by ~40 bps, primarily driven by strong topline growth, partially offset by an increase in marketing investments and operating costs versus the prior year.

The acquisitionheadwind was due to the acquisition of the finished goods BodyArmor business.

Note: Numbers may not add due to rounding.

4

YTD 2022 MARGIN ANALYSIS

CONSOLIDATED OPERATING MARGIN

Operating segment mix headwind of ~(20bps)	•
driven by relative outperformance in our lower
margin, finished goods BIG segment versus our
geographic operating segments.

	~100bps	~(40bps)	~(100bps)
~140bps	31.4%
	31.0%	~(470bps)	•
30.0%
%
					26.3%
					•
		~(30bps)

YTD21 GAAP	Items	YTD21	Underlying	Currency Acquisitions/	YTD22	Items	YTD22 GAAP
	Impacting	Comparable		Divestitures/	Comparable	Impacting
	Comparability (Non-GAAP)		Structural	(Non-GAAP) Comparability

KEY TAKEAWAYS

Items impacting comparability in the current yearprimarily relate to transaction gains & losses and economic hedging activities.

Underlyingoperating margin expanded by ~100 bps, primarily driven by strong topline growth, partially offset by an increase in marketing investments and operating costs versus the prior year.

The acquisitionheadwind was due to the acquisition of the finished goods BodyArmor business.

Note: Numbers may not add due to rounding.

5