COCA-COLA İÇECEK A.Ş. — Earnings Release 2017

Feb 27, 2018

Earnings Release

Istanbul, 27 February 2018

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ACCELERATING PERFORMANCE THROUGH QUALITY GROWTH & EFFICIENCY

FY17 Highlights

• Net sales revenue (‘NSR’) up by 20.9%

• FX-neutral NSR up by 9.8%

• EBIT margin up by 117 bps to 10.3%

• EBITDA margin up by 68 bps to 16.2%

• TL 238 m net income vs. TL 28 m loss in 2016

Burak Basarir, CEO of Coca-Cola Icecek, commented: “We are pleased with our growth in 2017, with all of our regions contributing to the top-line acceleration. Through high-quality growth and efficiency measures, we registered the highest net revenue, EBIT and EBITDA growth of the past five years and delivered on our 2017 guidance. Robust profitability reconfirmed the strength of our business model and resulted in record high free cash flow. Today we also announced a TL 200 million dividend proposal* for 2017, reflecting our commitment to return value to our shareholders.

• Record high FCF of TL 729 m

In Turkey, volume grew by 3.3%, the highest increase in five years. Quality volume growth saw the Sparkling category turning positive after five years and a more significant share of immediate consumption (IC) volumes. Net revenue per case grew 8.1% in 2017, on the back of strong price-mix stemming from successful revenue growth initiatives.

• Record high dividend of TL 200 m

4Q17 Highlights

• Net sales revenue up by 20.5%

• FX-neutral NSR up by 13.1%

Pakistan operations were able to build on the previous year’s high base, and we are pleased to report a significant improvement in operating profitability through price increases and efficiency measures. In Iraq, volume growth turned positive in 2017, supported by strong Sparkling performance and improved market execution. Central Asia regained its growth momentum as Kazakhstan and Azerbaijan, our largest markets in the region, both posted strong double-digit volume growth, driven by a recovering macroeconomic backdrop. Despite the challenging operating environment in Turkmenistan, Central Asia’s overall performance was solid, with volume growth in all categories and improving operating profitability.

• EBIT margin up by 427 bps to 2.6%

• EBITDA margin up by 325 bps to 10.3%

• Net loss down by 58.8%

Follow tomorrow's live event

2017 Results Webcast; 16:00 Istanbul / 13:00 London / 08:00 New York

Click here to access webcast

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In 2017, we further strengthened our readiness for future growth opportunities with a very successful Eurobond issuance resulting in both a longer maturity and lower financing cost. In addition, we successfully completed a hedging transaction for USD 150 million through participating cross-currency swaps, in early 2018. With our disciplined financial approach, strong market positions and proven management team, we are on track to grow our business profitably and deliver our strategic objectives set out for 2025.”

*2013 growth based on 2012 proforma figures as announced in FY13 Earnings Release

**FY17 dividend is subject to the approval of the General Assembly of Shareholders

1

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	Key P&L	Numbers	and Margins	and Margins
Consolidated (million TL)	2016	2017	Change %	4Q16	4Q17	Change %
Volume (million uc)	1,189	1,237	4.1%	224	227	1.4%
Net Sales	7,050	8,521	20.9%	1,375	1,656	20.5%
Gross Profit	2,392	2,901	21.3%	413	546	32.2%
EBIT	641	874	36.4%	(23)	43	n.m.
EBIT (Exc. other)	629	859	36.6%	(37)	36	n.m.
EBITDA	1,093	1,379	26.2%	96	170	76.4%
EBITDA (Exc. other)	1,068	1,370	28.3%	78	166	113.2%
Profit / (Loss) Before Tax	71	421	495.0%	(402)	(161)	(59.9%)
Net Income/(Loss)	(28)	238	n.m.	(360)	(149)	(58.8%)
Gross Profit Margin	33.9%	34.0%		30.1%	33.0%
EBIT Margin	9.1%	10.3%		(1.7%)	2.6%
EBIT Margin (Exc. other)	8.9%	10.1%		(2.7%)	2.2%
EBITDA Margin	15.5%	16.2%		7.0%	10.3%
EBITDA Margin (Exc. other)	15.1%	16.1%		5.7%	10.0%
Net Income / (Loss) Margin	(0.4%)	2.8%		(26.2%)	(9.0%)
Turkey (million TL)	2016	2017	Change %	4Q16	4Q17	Change %
Volume (million uc)	601	621	3.3%	118	120	1.9%
Net Sales	3,601	4,022	11.7%	672	803	19.4%
Gross Profit	1,346	1,544	14.7%	224	290	29.2%
EBIT	360	538	49.6%	(34)	46	n.m.
EBIT (Exc. other)	261	325	24.6%	(45)	(25)	(44.6%)
EBITDA	515	708	37.3%	8	90	976.9%
EBITDA (Exc. other)	415	494	19.0%	(6)	18	n.m.
Net Income/(Loss)	(61)	293	n.m.	(309)	(79)	(74.5%)
Gross Profit Margin	37.4%	38.4%		33.4%	36.1%
EBIT Margin	10.0%	13.4%		(5.0%)	5.7%
EBIT Margin (Exc. other)	7.3%	8.1%		(6.7%)	(3.1%)
EBITDA Margin	14.3%	17.6%		1.2%	11.3%
EBITDA Margin (Exc. other)	11.5%	12.3%		(0.8%)	2.2%
Net Income / (Loss) Margin	(1.7%)	7.3%		(45.9%)	(9.8%)
International (million TL)	2016	2017	Change %	4Q16	4Q17	Change %
Volume (million uc)	588	617	4.9%	106	107	0.8%
Net Sales	3,450	4,500	30.4%	703	854	21.4%
Gross Profit	1,047	1,357	29.6%	189	256	35.3%
EBIT	346	513	48.5%	10	60	489.4%
EBIT (Exc. other)	335	493	47.3%	2	53	n.m.
EBITDA	648	851	31.4%	92	145	58.3%
EBITDA (Exc. other)	621	836	34.7%	77	140	81.0%
Net Income/(Loss)	99	139	40.5%	(56)	(2)	(96.9%)
Gross Profit Margin	30.3%	30.2%		26.9%	30.0%
EBIT Margin	10.0%	11.4%		1.5%	7.1%
EBIT Margin (Exc. other)	9.7%	11.0%		0.2%	6.2%
EBITDA Margin	18.8%	18.9%		13.0%	17.0%
EBITDA Margin (Exc. other)	18.0%	18.6%		11.0%	16.4%
Net Income / (Loss) Margin	2.9%	3.1%		(7.9%)	(0.2%)

2

Operational Overview

Sales Volume

Consolidated:

In FY17 , consolidated sales volume increased by 4.1%, in line with our guidance. This was driven by solid performance of Sparkling (up 3.3%), Stills (up 8.5%) and non-ready-to-drink ("NRTD") Tea (up 20.9%), while Water volume declined by 3.2%. The share of Turkey operations within total sales volume was 50% in FY17 compared to 51% in FY16.

In 4Q17 , consolidated sales volume rose by 1.4%, driven by 3.0% Sparkling and 16.8% Stills growth, along with 4.0% lower Water and 7.7% lower NRTD tea volume.

Growth Breakdown	Growth Breakdown	Growth Breakdown
4Q16 4Q17 2016 2017 2016 2017
Sparkling 2.8% 3.0% Stills (excluding water) (0.4%) 16.8% Water 0.4% (4.0%) Tea (NRTD) 28.8% (7.7%) Total 5.0% 1.4%	3.7% 3.3% (3.7%) 8.5% 3.8% (3.2%) 3.6% 20.9% 3.2% 4.1%	71% 71% 6% 6% 15% 14% 8% 9% 100% 100%

Turkey:

In FY17 , Turkey operations delivered volume growth of 3.3%, registering the highest growth of the past 5 years. This was mainly driven by Sparkling (up 1.7%), Stills (up 4.1%) and NRTD tea (up 20.7%). Water contracted by 6.8% in FY17, in line with our strategy to improve category profitability. Our initiatives to drive revenue through quality volume growth resulted in positive Sparkling growth for the first time in 5 years. The share of immediate consumption ("IC") packages in the Sparkling category increased to 22% from 20% in FY16, with the number of transactions growing by 9%, outpacing volume growth. Throughout 2017, the launch of the One Brand Strategy, the transition to 330 ml sleek cans and the launch of Fanta Frontier stood out as successful innovations.

In 4Q17 , volume growth in Turkey was 1.9%. The Sparkling category registered 5.7% growth with an accelerated growth of 23.5% in IC packages. The share of IC packages in the Sparkling category increased by 3.7% points year-on-year to 25.7%. The Stills category posted 13.2% growth in the quarter, mainly driven by double-digit growth both in Juice and Ice Tea. Meanwhile, Water contracted by 0.7% with packaging mix evolving in favor of IC packages. NRTD Tea declined by 7.9%, mainly due to the high base of 4Q16.

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3

Operational Overview

International:

In FY17 , our international operations delivered 4.9% volume growth, primarily driven by growth in Kazakhstan, Pakistan, Azerbaijan and Iraq.

• In Pakistan, volume rose by 3.5%. This was mainly due to our focus on profitable volume growth and price increases in early 2017 for the first time in 3 years, which slowed down overall volume growth. Brand Coca-Cola outperformed the Sparkling category via improved market execution and successful consumer activities such as Coke Studio.

• Across the Middle East, volume grew by 5.5%, with Iraq posting 5.5% growth, mainly driven by Sparkling. Jordan recorded 5.0% growth for the year.

• Central Asia registered 7.0% growth, mainly due to strong performance in Kazakhstan and Azerbaijan. Kazakhstan posted 17.5% volume growth, representing a record high volume in the aftermath of the economic slowdown. Strong market execution, successful consumer activities and higher oil prices supporting the economy led to double-digit growth in all categories in Kazakhstan. Azerbaijan, our second largest market in the region, posted 27.2% volume growth, mainly driven by strong growth in the Sparkling category. Turkmenistan registered 45.8% volume contraction due to a worsened macroeconomic backdrop which resulted in limitations on currency convertibility, causing interruptions to our operations.

In 4Q17 , international operations delivered 0.8% volume growth.

• In Pakistan, volume decreased by 3.7% in 4Q17, cycling 13.1% growth in 4Q16, mainly due to the slowdown impact of price increases, coupled with unfavorable weather conditions and macro uncertainties impacting consumer sentiment.

• Across the Middle East, volume grew by 3.7%. Iraq posted 4.9% growth driven by the Sparkling category. Jordan recorded a 2.6% contraction, reflecting the weak macroeconomic environment and slowdown in overall consumer spending.

• Central Asia registered 5.3% volume growth with all markets, except for Turkmenistan, posting doubledigit volume growth. During the quarter, Kazakhstan posted 13.4% volume growth, cycling 14.3% growth in 4Q16 and Azerbaijan posted 34.7% volume growth.

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4

Financial Overview

In FY17,

• Net sales revenue ("NSR") increased by 20.9%, mainly driven by double-digit revenue growth in Turkey operations and positive FX conversion impact of International operations. On an FX-neutral[(1)] basis, consolidated NSR was up by 9.8%, on the back of increasing volume, strong pricing and positive sales mix.

In Turkey, NSR was up by 11.7%, mainly driven by pricing, successful promotion management and improving packaging mix. NSR per unit case maintained its momentum throughout the year, recording 8.1% growth as our revenue growth initiatives continued to deliver solid results.

In our International operations, NSR increased by 30.4% or 7.8% on an FX-neutral basis. Strong volume growth in Central Asia and NSR per unit case growth in Pakistan were the main drivers of topline in 2017, while NSR per unit case was up by 2.8%, on an FX-neutral basis.

	Net Sales	Revenue(TL m)	NSRper UC(TL)	NSRper UC(TL)
	2017	YoY Change	2017	YoY Change
Turkey	4,022	11.7%	6.48	8.1%
International	4,500	30.4%	7.30	24.4%
International (FX Neutral)	3,718	7.8%	6.03	2.8%
Consolidated	8,521	20.9%	6.89	16.1%
Consolidated(FX Neutral)	7,739	9.8%	6.25	5.5%

(1) FX-Neutral: Using constant FX rates when converting country P&L’s to TL.

• Gross margin improved by 11 bps to 34.0% with raw material costs as a percentage of revenue remaining almost flat on a consolidated basis.

In Turkey, stronger NSR per unit case more than offset higher packaging costs and paved the way for margin expansion. Turkey’s gross margin improved by 101 bps to 38.4% in 2017.

In our International operations, gross margin remained almost flat at 30.2% as margin expansion in Pakistan and Kazakhstan compensated for lower margins in Turkmenistan and Iraq.

• EBIT margin improved by 117 bps to 10.3%, primarily driven by Turkey operations. This was due to 11 bps decrease in cost of sales, 32 bps decrease in G&A expenses and 73 bps decrease in SD&M expenses as a percentage of revenue. Operating expenses as a percentage of revenue declined both in Turkey and in international operations.

• • EBITDA margin expanded by 68 bps to 16.2% in 2017, reflecting better operating profitability in Turkey and lower OpEx/Sales.

• Net financial expense decreased by 10.3% mainly due to lower net interest expense and FX loss.

• Non-controlling interest (minority interest) decreased by 13.6% in 2017, mostly attributable to the Pakistan impact. Our effective tax rate was 33% in 2017 compared to 68% in 2016. The effective tax rate may vary quarterly, depending on the different tax rates, the mix of taxable profits by country, nondeductible expenses, tax incentives and other one-off items.

• Net income was TL 238 m in 2017 vs. TL28 m loss* in 2016 mainly due to higher operating profit and lower net financial expense.

• The number also includes impairment of South Iraq goodwill of TL 54 mn, reflected on financial tables as of 31 December 2016.

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5

Financial Overview

In 4Q17,

• Net sales revenue (NSR) increased by 20.5% in 4Q17 while it was up by 13.1% on an FX-neutral[(1)] basis.

In Turkey, NSR was up by 19.4%, mainly driven by pricing and improving packaging mix. NSR per unit case accelerated to 17.2% in the last quarter of the year, reflecting higher share of IC packages, favorable sales mix and continued focus on more profitable packages.

In our International operations, NSR increased by 21.4%, or 7.1% on an FX-neutral basis. NSR per unit case increased by 20.5%, or 6.3% on an FX-neutral basis, which was mainly supported by higher NSR per case in Pakistan.

	Net Sales	Revenue(TL m)	NSRper UC(TL)	NSRper UC(TL)
	4Q17	YoY Change	4Q17	YoY Change
Turkey	803	19.4%	6.67	17.2%
International	854	21.4%	8.00	20.5%
International (FX Neutral)	753	7.1%	7.06	6.3%
Consolidated	1,656	20.5%	7.29	18.8%
Consolidated(FX Neutral)	1,556	13.1%	6.85	11.6%

(1) FX-Neutral: Using constant FX rates when converting country P&L’s back to TL.

• Gross margin expanded by 292 bps to 33.0% in 4Q17, with both Turkey and International operations delivering margin expansion. In Turkey, growth in cost per unit case lagged behind growth in NSR per case, leading to 274 bps expansion in gross margin. International gross margin improved by 307 bps as higher NSR per case compensated for higher costs in sugar and packaging materials.

• EBIT margin turned positive in 4Q17 with significant margin expansion both in Turkey and International operations.

• EBITDA margin improved by 325 bps to 10.3% in 4Q17, reflecting solid operating profitability, both in Turkey and International operations.

• Net financial expense decreased by 35.7% in 4Q17 on the back of lower net interest expense and FX losses.

• Net loss decreased by 58.8% in 4Q17, due to higher operating profitability and lower net financial expenses.

Financial Income / (Expense) Breakdown

Financial Income / (Expense) Breakdown
Financial Income /(Expense) (TL m)	2016 2017	4Q16 4Q17
Interest income Interest expense (-) Other financial FX gain / (loss) Realized FX gain / (loss) - Borrowings Unrealized FX gain / (loss) - Borrowings Financial Income /(Expense) Net	41 94 (162) (208) 145 211 (32) (14) (482) (522) (490) (439)	15 50 (46) (73) 137 160 (24) 0 (395) (338) (313) (202)

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6

Financial Overview

• Free cash flow increased to TL 729m in 2017, up by 13.7% compared to 2016, mostly attributable to higher cash from operating activities and lower capital expenditure.

• CapEx / Net Sales was 5.9% in 2017 compared to 7.3% in 2016. Within the total capital expenditure of TL 499m, 46% was related to Turkey while 54% was related to International operations.

• Consolidated debt increased by 48.1% to USD 1,587 mn as of 2017 end, compared to year-end 2016. The increase was due to the Eurobond issuance of USD 500 m in September 2017, to refinance the existing Eurobond with upcoming maturity in 2018. Consolidated cash was USD 1,032 m, USD 612 m higher than year-end 2016, also reflecting the recent Eurobond proceeds held in cash, bringing net debt to USD 555 m as of 2017. Net Debt/EBITDA* ratio improved to 1.52x in 2017 from 2.10x in 2016.

Financial Leverage Ratios	2016	2017	2017*
Net Debt / EBITDA	2.10	1.52	1.52
Debt Ratio (Total Fin. Debt / Total Assets)	36%	45%	36%
Fin. Debt-to-EquityRatio	75%	110%	75%

(*) Excluding the refinanced USD 500 m Eurobond

• As of 31 December 2017, excluding the refinanced Eurobond, 75% of our consolidated financial debt was in USD, 23% in EUR and the remaining 2% in TL, Pakistani Rupee and Kazakh Tenge.

• The average duration of the consolidated debt portfolio was 3.3 years (4.4 years excluding 2018 USD 500 m Eurobond) and the maturity profile was as follows:

Maturity Date	2018	2019	2020	2021	2022	2023	2024
% of total debt	47%	2%	7%	1%	1%	9%	33%

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7

Accounting Principles

The consolidated financial statements and disclosures have been prepared in accordance with the communiqué numbered II-14,1 “Communiqué on the Principles of Financial Reporting In Capital Markets. In accordance with article 5 of the CMB Accounting Standards, companies should apply Turkish Accounting Standards / Turkish Financial Reporting Standards (“TAS” / “TFRS”) and interpretations regarding these standards as adopted by the Public Oversight Accounting and Auditing Standards Authority (“POA”).

As of December 31, 2017, the list of CCI’s subsidiaries and joint ventures are as follows:

Subsidiaries and Joint Ventures	Country	Consolidation Method
Coca-Cola Satış ve Dağıtım A.Ş.	Turkey	Full Consolidation
Mahmudiye Kaynak Suyu Limited Şirketi	Turkey	Full Consolidation
J.V. Coca-Cola Almaty Bottlers LLP	Kazakhstan	Full Consolidation
Azerbaijan Coca-Cola Bottlers LLC	Azerbaijan	Full Consolidation
Coca-Cola Bishkek Bottlers Closed J. S. Co.	Kyrgyzstan	Full Consolidation
CCI International Holland B.V.	Holland	Full Consolidation
Tonus Turkish-Kazakh Joint Venture LLP	Kazakhstan	Full Consolidation
The Coca-Cola Bottling Company of Jordan Ltd.	Jordan	Full Consolidation
Turkmenistan Coca-Cola Bottlers	Turkmenistan	Full Consolidation
(CC) Company for Beverage Industry/Ltd.	Iraq	Full Consolidation
Waha Beverages B.V.	Holland	Full Consolidation
Coca-Cola Beverages Tajikistan LLC	Tajikistan	Full Consolidation
Al Waha for Soft Drinks, Juices, Min.Water, Plastics and Plastic Caps Prod.	Iraq	Full Consolidation
Coca-Cola Beverages Pakistan Ltd.	Pakistan	Full Consolidation
Syrian Soft Drink Sales and Distribution LLC	Syria	Equity Method

EBITDA Reconciliation

The Company’s “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)” definition and calculation is defined as; “Profit / (loss) from operations” plus relevant non-cash expenses including depreciation and amortization, provision for employee benefits like retirement and vacation pay (provision for management bonus not included) and other non-cash expenses like negative goodwill and value increase due to change in scope of consolidation.

As December 31, 2017 and 2016, reconciliation of EBITDA to profit / (loss) from operations is explained in the following table:

EBITDA(TLm)	2016	2017
Profit / (loss) from operations	641	874
Depreciation and amortization	424	497
Provision for employee benefits	15	13
Foreign exchange gain / (loss) under other operating income / (expense)	13	(6)
EBITDA	1.093	1.379

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8

Functional and Presentation Currency

The majority of the consolidated foreign subsidiaries and joint venture are regarded as foreign operations since they are financially, economically and organizationally autonomous. In accordance with “IAS 21 The Effects of Changes in Foreign Exchange Rates”, there has been a change in the functional currency of the foreign subsidiaries and joint venture from US Dollars ("USD") to the foreign subsidiaries' and joint ventures' local currencies effective from January 1, 2017. This was done considering the multinational structure of foreign operations and realization of most of their operations, by assessing the currency of the primary economic environment of foreign operations, the currency that influences sales prices for goods and services, the currency in which receipts from operating activities are usually retained and the currency that mainly influences costs and other expenses for providing goods and services. The group has applied the change in functional currency prospectively, in accordance with the requirements of IFRS and the relevant Accounting Standards. All assets and liabilities are converted into the new functional currency using the exchange rate at the date of the change. The resulting translated amounts for non-monetary items are treated as their historical cost.

Functional and presentation currency of the Company is Turkish Lira (TL).

Functional Currencies of the Subsidiaries and Joint Ventures

	December	31, 2016	December 31, 2017	December 31, 2017
	Local Currency	Functional Currency	Local Currency	Functional Currency
CCSD	Turkish Lira	Turkish Lira	Turkish Lira	Turkish Lira
Mahmudiye	Turkish Lira	Turkish Lira	Turkish Lira	Turkish Lira
Almaty CC	Kazakh Tenge	U.S. Dollars	Kazakh Tenge	Kazakh Tenge
Tonus	Kazakh Tenge	U.S. Dollars	Kazakh Tenge	Kazakh Tenge
Azerbaijan CC	Manat	U.S. Dollars	Manat	Manat
Turkmenistan CC	Turkmen Manat	U.S. Dollars	Turkmen Manat	Turkmen Manat
Bishkek CC	Som	U.S. Dollars	Som	Som
TCCBCJ	Jordanian Dinar	U.S. Dollars	Jordanian Dinar	Jordanian Dinar
CCBIL	Iraq Dinar	U.S. Dollars	Iraq Dinar	Iraq Dinar
SSDSD	Syrian Pound	U.S. Dollars	Syrian Pound	Syrian Pound
CCBPL	Pakistan Rupee	Pakistan Rupee	Pakistan Rupee	Pakistan Rupee
CCI Holland	Euro	U.S. Dollars	Euro	U.S. Dollars
Waha B.V.	Euro	U.S. Dollars	Euro	U.S. Dollars
Al Waha	Iraq Dinar	U.S. Dollars	Iraq Dinar	Iraq Dinar
Tajikistan CC	Somoni	U.S. Dollars	Somoni	Somoni

Foreign Currency Translations

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recorded in the consolidated income statement of the relevant period, as foreign currency loss or gain. Foreign currency translation rates announced by the Central Bank of the Republic of Turkey used by the Group’s subsidiaries in Turkey. USD amounts presented in the balance sheet are translated into TL with the official TL exchange rate for purchases of USD on December 31, 2017, USD 1,00 (full) = TL 3,7719 (December 31, 2016; USD 1,00 (full) = TL 3,5192). Furthermore, USD amounts in the income statement have been translated into TL, at the average TL exchange rate for purchases of USD for the period is USD 1,00 (full) = TL 3,6445 (December 31, 2016; USD 1,00 (full) = TL 3,0181)

Exchange Rates	2016	2017
Average USD/TL	3.0181	3.6445
End of Period USD/TL	3.5192	3.7719

The assets and liabilities of subsidiaries and joint ventures operating in foreign countries are translated at the rate of exchange ruling at the balance sheet date and the income statements of foreign subsidiaries and joint ventures are translated at average exchange rates. Differences that occur by the usage of closing and average exchange rates are followed under currency translation differences classified under equity.

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9

2018 Guidance

• Volume growth:

• 2%-4% in Turkey

• 8%-10% in international operations

• 4%-6% on a consolidated basis

• Net revenue growth:

• 8%-10% in Turkey

• 12%-14% in international operations (FX-neutral)

• 10%-12% on a consolidated basis (FX-neutral)

• EBITDA Margin:

• Flat in Turkey

• Slight improvement in international operations

• Slight improvement on a consolidated basis

• Capex/Sales: 7%-8% (on a comparable basis)

• Net debt/ EBITDA: Lower than 1.5x (on an FX-neutral and organic basis)

The business outlook of the Company is subject to the risks which are stated in the annual report and financial reports.

Note:

Beginning in 2018, our half-year volume announcement will be included with the earnings release, as the period between the volume announcement and the earnings release has been tightened.

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10

CCI Consolidated Income Statement

Audited

	1 January - 31 December	1 January - 31 December	1 January - 31 December	1	October - 31 December	October - 31 December
(TL m)	2016	2017	Change (%)	2016	2017	Change (%)
Sales Volume (UC millions)	1,189	1,237	4.1%	224	227	1.4%
Revenue	7,050	8,521	20.9%	1,375	1,656	20.5%
Cost of Sales	(4,658)	(5,620)	20.7%	(962)	(1,110)	15.4%
Gross Profit from Operations	2,392	2,901	21.3%	413	546	32.2%
Distribution, Selling and Marketing Expenses	(1,419)	(1,653)	16.5%	(351)	(398)	13.3%
General and Administrative Expenses	(344)	(389)	13.0%	(99)	(112)	12.8%
Other Operating Income	132	138	4.1%	64	30	(52.9%)
Other Operating Expense	(120)	(123)	2.0%	(50)	(23)	(53.1%)
Profit / (Loss) from Operations	641	874	36.4%	(23)	43	n.m.
Gain / (Loss) From Investing Activities	(79)	(13)	(83.0%)	(65)	(2)	(96.3%)
Gain / (Loss) from Associates	(1)	(0)	(64.2%)	(1)	(0)	(64.7%)
Profit / (Loss) Before Financial Income / (Expense)	561	860	53.4%	(89)	40	n.m.
Financial Income	312	508	62.9%	183	283	54.4%
Financial Expenses	(802)	(947)	18.2%	(497)	(484)	(2.4%)
Profit / (Loss) Before Tax	71	421	495.0%	(402)	(161)	(59.9%)
Deferred Tax Income / (Expense)	3	(48)	n.m.	(2)	(21)	1224.2%
Current Period Tax Expense	(51)	(91)	77.6%	37	13	(65.4%)
Net Income / (Loss) Before Minority	22	281	n.m.	(367)	(169)	(53.8%)
Minority Interest	(51)	(44)	(13.6%)	6	21	222.2%
Net Income / (Loss) After Minority	(28)	238	n.m.	(360)	(149)	(58.8%)
EBITDA	1,093	1,379	26.2%	96	170	76.4%

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11

Turkey Income Statement

Audited

	1 January - 31 December	1 January - 31 December		1 October - 31 December	1 October - 31 December
(TL m)	2016	2017	Change (%)	2016	2017	Change (%)
Sales Volume (UC millions)	601	621	3.3%	118	120	1.9%
Revenue	3,601	4,022	11.7%	672	803	19.4%
Cost of Sales	(2,255)	(2,478)	9.9%	(448)	(513)	14.5%
Gross Profit from Operations	1,346	1,544	14.7%	224	290	29.2%
Distribution, Selling and Marketing Expenses	(893)	(995)	11.4%	(216)	(247)	14.4%
General and Administrative Expenses	(192)	(224)	16.8%	(53)	(67)	27.3%
Other Operating Income	130	256	96.2%	28	81	183.9%
Other Operating Expense	(31)	(43)	35.4%	(17)	(10)	(44.3%)
Profit / (Loss) from Operations	360	538	49.6%	(34)	46	n.m.
Gain / (Loss) From Investing Activities	(2)	2	n.m.	(3)	1	n.m.
Profit / (Loss) Before Financial Income / (Expense)	358	540	51.0%	(37)	47	n.m.
Financial Income	313	486	55.3%	174	281	61.3%
Financial Expenses	(736)	(730)	(0.9%)	(483)	(432)	(10.5%)
Profit / (Loss) Before Tax	(66)	295	n.m.	(345)	(104)	(69.9%)
Deferred Tax Income / (Expense)	11	(3)	n.m.	3	(10)	n.m.
Current Period Tax Expense	(5)	0	n.m.	34	35	4.7%
Net Income / (Loss)	(61)	293	n.m.	(309)	(79)	(74.5%)
EBITDA	515	708	37.3%	8	90	976.9%

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12

International Income Statement

Audited

	1 January - 31 December	1 January - 31 December	1 January - 31 December	1 October - 31 December	1 October - 31 December	1 October - 31 December
(TL m)	2016	2017	Change (%)	2016	2017	Change (%)
Sales Volume (UC millions)	588	617	4.9%	106	107	0.8%
Revenue	3,450	4,500	30.4%	703	854	21.4%
Cost of Sales	(2,403)	(3,143)	30.8%	(514)	(598)	16.3%
Gross Profit from Operations	1,047	1,357	29.6%	189	256	35.3%
Distribution, Selling and Marketing Expenses	(526)	(658)	25.1%	(135)	(151)	11.6%
General and Administrative Expenses	(186)	(205)	10.6%	(53)	(53)	(0.4%)
Other Operating Income	100	100	0.5%	42	21	(49.0%)
Other Operating Expense	(89)	(80)	(9.8%)	(33)	(14)	(58.4%)
Profit / (Loss) from Operations	346	513	48.5%	10	60	489.4%
Gain / (Loss) From Investing Activities	(77)	(15)	(80.4%)	(62)	(3)	(95.1%)
Gain / (Loss) from Associates	(1)	(0)	(64.2%)	(1)	(0)	(64.7%)
Profit / (Loss) Before Financial Income / (Expense)	268	498	85.9%	(53)	57	n.m.
Financial Income	28	52	86.3%	16	8	(47.5%)
Financial Expenses	(94)	(247)	162.1%	(21)	(59)	179.2%
Profit / (Loss) Before Tax	202	303	50.4%	(58)	6	n.m.
Deferred Tax Income / (Expense)	(8)	(45)	493.0%	(4)	(11)	155.1%
Current Period Tax Expense	(43)	(74)	70.6%	3	(18)	n.m.
Net Income / (Loss) Before Minority	151	184	22.2%	(59)	(23)	(61.6%)
Minority Interest	(52)	(45)	(13.2%)	3	21	613.8%
Net Income / (Loss) After Minority	99	139	40.5%	(56)	(2)	(96.9%)
EBITDA	648	851	31.4%	92	145	58.3%

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13

CCI Consolidated Balance Sheet

(TL m)	Audited 31 December 2016	Audited 31 December 2017	Audited 31 December 2017
Current Assets	3,133	5,705
Cash and Cash Equivalents	1,466	3,875
Investments in Securities	11	17
Derivative Financial Instruments	1	0
Trade Receivables	528	567
Due from related parties	77	108
Other Receivables	41	40
Inventories	521	564
Prepaid Expenses	148	174
Tax Related Current Assets	102	110
Other Current Assets	238	249
Non-Current Assets	7,323	7,689
Other Receivables	11	13
Property, Plant and Equipment	5,085	5,258
Intangible Assets	1,406	1,507
Goodwill	671	719
Prepaid Expenses	142	192
Deferred Tax Asset	7	0
Total Assets	10,456	13,394
(TL m)	Audited 31 December 2016	Audited 31 December 2017
Current Liabilities	1,498	4,128
Short-term Borrowings	109	78
Current Portion of Long-term Borrowings	256	2,717
Financial lease payables	0	2
Trade Payables	593	711
Due to Related Parties	181	245
Payables Related to Employee Benefits	32	40
Other Payables	212	232
Provision for Corporate Tax	0	5
Provision for Employee Benefits	82	66
Other Current Liabilities	33	32
Non-Current Liabilities	3,961	3,827
Financial lease payables	0	4
Long-term Borrowings	3,405	3,190
Trade Payables & Due to Related Parties	26	35
Provision for Employee Benefits	65	72
Deferred Tax Liability	354	408
Other Non-Current Liabilities	111	118
Equity of the Parent	4,305	4,736
Minority Interest	692	704
Total Liabilities	10,456	13,394

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CCI Consolidated Cash Flow

		Audited
(TL m)		Year-End
	2016		2017
Cash Flow from Operating Activities
IBT Adjusted for Non-cash items	1,134		1,466
Interest Paid	(162)		(182)
Interest Received	41		94
Change in Tax Assets and Liabilities	(31)		(73)
Employee Termination Benefits, Vacation Pay, Management Bonus payments	(24)		(79)
Operating Cash Flow	958		1,226
Change in Operating Assets & Liabilities	201		3
Net Cash Provided by Operating Activities	1,159		1,229
Purchase of Property, Plant & Equipment	(517)		(499)
Free Cash Flow	642		729
Other Net Cash Provided by/(Used in) Investing Activities	1		8
Change in ST & LT Loans	(247)		1,649
Dividends Paid	(30)		(74)
Cash Flow Hedge Reserve	78		(47)
Finance Lease Payables	0		5
Net Cash Provided by/(Used in) Financing Activities	(198)		1,533
Currency Translation on Cash & Cash Equivalents	59		180
Currency Translation on Intercompany Borrowings	98		31
Currency Translation Differences	(137)		(72)
Net Change in Cash & Cash Equivalents	464		2,409
Cash & Cash Equivalents at the beginning of the period	1,002		1,466
Cash & Cash Equivalents at the end of the period	1,466		3,875

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15

Enquiries

Investor Contact: Media Contact: Yeşim Tohma; Head of Investor Relations Burçak Türkeri; Corporate Affairs Manager Tel:+90 216 528 3386 Tel:+90 216 528 3351 E-mail: yesim.tohma@cci.com.tr E-mail: burcak.turkeri@cci.com.tr Özge Taşkeli; Investor Relations Executive Tel:+90 216 528 4382 E-mail: ozge.taskeli@cci.com.tr

Company Profile

Coca-Cola İçecek (CCI) is the sixth largest bottler in the global Coca-Cola system in terms of sales volume. CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company (TCCC) across Turkey, Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq, Syria and Tajikistan.

CCI employs close to 9000 people and has a total of 25 plants, offering a wide range of beverages to a consumer base of 400 million people. In addition to sparkling beverages, the product portfolio includes juice, water, sports and energy drinks, tea and iced teas.

CCI’s shares are traded on Borsa Istanbul (BIST) under “CCOLA.IS”, American depositary receipts (ADR) are traded over the counter in the United States under “COLAY”, Eurobond is traded on Irish Stock Exchange under “CCOLAT” tickers:

Reuters CCOLA.IS Bloomberg CCOLA TI ADR-OTC COLAY Eurobond – Irish Stock Exchange CCOLAT

Special Note Regarding Forward-Looking Statements

This document contains forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek’s (CCI) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “target,” “believe” or other words of similar meaning. These forwardlooking statements reflect the current views and assumptions of management and are inherently subject to significant business, economic and other risks and uncertainties. Although management believes the expectations reflected in the forward-looking statements are reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that could cause actual results to differ materially from CCI’s expectations include, without limitation: changes in CCI’s relationship with The Coca-Cola Company and its exercise of its rights under our bottler's agreements; CCI’s ability to maintain and improve its competitive position in its markets; CCI’s ability to obtain raw materials and packaging materials at reasonable prices; changes in CCI’s relationship with its significant shareholders; the level of demand for its products in its markets; fluctuations in the value of the Turkish Lira and currencies in CCI’s other markets; the level of inflation in Turkey and CCI’s other markets; other changes in the political or economic environment in Turkey or CCI’s other markets; adverse weather conditions during the summer months; changes in the level of tourism in Turkey; CCI’s ability to successfully implement its strategy; and other factors. Should any of these risks and uncertainties materialize, or should any of management’s underlying assumptions prove to be incorrect, CCI’s actual results from operations or financial conditions could differ materially from those described herein as anticipated, believed, estimated or expected. Forward-looking statements speak only as of the date of this press release and CCI has no obligation to update those statements to reflect changes that may occur after that date.

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16