Citizenship@CCASustainability Report 2006

Coca-Cola Amatil (CCA) is the largest bottler of non-alcoholicready to drink beverages in the Asia-Pacific Region and oneof the top five Coca-Cola bottlers in the world.

Listed on the Australian Stock Exchange, CCA’s increasinglydiversified portfolio of products includes the Coca-Colatrademark brands; Mount Franklin, Pump and NeverfailSpringwater; Powerade Isotonic sports drink, Mother energydrink, Goulburn Valley fruit juices, Grinders Coffee and SPCA’sfruit and vegetable products. In 2006, CCA entered thepremium alcoholic beverage market, forming agreements withboth the world’s second largest brewer SABMiller and theglobal spirits company Maxxium, to sell and distribute theirpremium brands, including Peroni Nastro Azzurro, MillerGenuine Draft and Pilsner Urquell beer, Remy Martin Cognac,Jim Beam and ABSOLUT VODKA. CCA also entered into anagreement with Beam Global Spirits & Wine Australia tomanufacture Jim Beam ready to drink alcoholic beverages.

CCA operates in six countries, Australia, New Zealand, Fiji,South Korea, Indonesia and Papua New Guinea and employsaround 18,000 people. CCA’s group revenue in 2006 wasapproximately A$4.4 billion and EBIT was A$580.5 million.

Message from the Chairman 1

Message from the GroupManaging Director 3

The four global pillars 4

Our business 6

Governance 11

Focus on water 12

Environment 14

Marketplace 19

Workplace 22

Community 26

Awards 32

Glossary 33

Scope of this ReportThis is the first sustainability report for Coca-Cola Amatil (CCA) and covers our activities to March 2007. Unless stated otherwise it includes thebottling, sales and distribution activities in the six countries in which CCA operates – Australia, New Zealand, Fiji, Indonesia, Papua New Guineaand South Korea. It also covers SPC Ardmona (SPCA), Grinders Coffee, Neverfail Springwater and Peats Ridge Springs.

Quirks, our equipment division, has not been included in this report. Refinements to collection boundaries and reporting timelines will see a morealigned and consistent representation in subsequent reviews. As well, we are in the process of gathering information to quantify impacts of ourfleet fuel consumption and our equipment division. We aim to report more fully on these areas in the future.

The report does not cover our alcoholic beverages company, Pacific Beverages, a joint venture with SABMiller Inc. nor does it cover our sales and distribution agreement with global spirits company Maxxium. Information regarding these relationships will be included in our next report,where appropriate.

The content of this report is consistent with the worldwide framework for corporate social responsibility established by The Coca-Cola Company(TCCC). This framework, titled Citizenship@Coca-Cola, has four global pillars of commitment – Environment, Marketplace, Workplace and Community.

1

Welcome toCitizenship@CCA, Coca-Cola Amatil’s first sustainability report.

We have always believed that being agood corporate citizen is an essentialpart of business and we have had thisas our goal in all the markets in whichwe operate.

The time has now come for us, on aregular basis, to formally documentand share this with our shareholdersand stakeholders, and to demonstratehow we measure and account for ourachievements.

We are doing this under four pillars –Environment, Marketplace, Workplaceand Community. We’re reporting thempublicly and building a platform forcontinued improvement into thefuture. We are determined that CCAwill not only continue to be a greatbeverage and food company, but thatour business, which started in Australiain 1904, will go on creating wealth,improvements and opportunities forour stakeholders and for futuregenerations in a truly sustainable way.

This report reflects our desire to ensurethat the way we conduct business istransparent to our employees, ourshareholders, our customers, ourconsumers and our suppliers, and of course, to the general public.Sustainability at CCA is a mainstreambusiness imperative, a commitmentdriven not only at Board level by theCompliance and Social ResponsibilityCommittee, but by our ManagingDirector Terry Davis, and other senior executives and their teamsacross the group.

We believe that responsible wealthcreation is a fundamental socialcontribution of business. During 2006we had a number of successes in ourlong-term goal of being the beveragesupplier of choice by continuing todiversify our product portfolio andintroducing new products. InAustralia, in the latter half of the yearwe entered the premium alcoholicbeverages market, joining forces withthe world’s second largest brewer,SABMiller and the global spiritscompany Maxxium. These newbusiness relationships have deliveredtremendous opportunities for growthand continued excellence inmarketplace execution.

MarketplaceIn response to community concernsabout health, we have significantlydiversified our product range. Todaywater, fruit juice, coffee, sports andenergy drinks, sugar-free soft drinksand SPCA’s fruit and vegetableproducts contribute to more than 30% of our revenue, compared to just 5% in 2001.

The Australian and New Zealandlaunch of sugar-free Coca-Cola Zerowas an unprecedented success, on the one hand igniting the soft drinkmarket and delivering value to ourshareholders, and on the other hand,helping consumers choose, if theywish, a lower kilojoule beverage.

EnvironmentManaging our environmental“footprint”is crucial to the future ofour business. Management of thesustainability of water, our mostprecious resource, is a priority for us.We are making excellent progress insaving water at every level of ourbusiness, thanks to our EnvironmentalManagement Systems, utilising newtechnology like waterless lubricationon the production lines and byworking with governments on watersavings action plans.

Message from the Chairman

David Gonski AOChairman

Coca-Cola Amatil

2

Message from the Chairman continued

Our aim is to ensure that as a providerof water and water-based products forpeople to eat and drink, that as muchas possible of the water we use goesinto the product for people to consume.

In our bottled water business we are also responsibly managing springwater, or groundwater, resources toensure their long-term sustainabilityby investing in stringent monitoringand ongoing hydrogeological studiesof our water sources. We share theconcerns of Australia’s leadinghydrogeologists that the true status of Australian groundwater systemsand the impact of all users is largelyunknown, and we strongly supporttheir call for major national reforms in groundwater management.

Community and WorkplaceWe are committed to maintaining andimproving the health and wellbeing ofour employees and the myriadcommunities in which we operate.This has taken the form of manyinitiatives, including the reconstructionof Indonesian villages in the aftermathof the tsunami; tackling HIV/AIDS inPapua New Guinea and Indonesia;encouraging our Australian staff tovolunteer for Landcare projects; and

donating drinks to the men andwomen who protect our communitiesfrom devastating cyclones and fires.

In 2006 the value of our communitysupport was approximately $4 million,or 1% of our group pre-tax profit.

We have been manufacturing andoperating in cities and regional towns for decades – most Australiansremember fondly the school visit to their local Coke bottling plant – but we do not take our neighbours for granted.

We’ve set up a process to speak more openly and build betterrelationships with the people who live and work beside us at all ouroperations around Australia. We’ve set up a hotline and we’re asking ourneighbours for comments andfeedback on our local activities.

We seek to be at the forefront ofencouraging and being involved in philanthropic giving. With TheCoca-Cola Company, we haveestablished charitable Foundations in Australia, Indonesia and SouthKorea which distribute funds everyyear to their local communities. InAustralia we have a workplace giving

program,“Thirst For Giving,”where staff donations are matched by the company.

FutureThe world, and CCA, have changed agreat deal in the past 100 years sincewe started life. We believe we havemade good progress in embedding aculture of sustainability and corporateresponsibility – in 2006 we wererecognised by governments for ourwater savings, we were listed as aLeader of the Food, Beverage andTobacco sector of the 2007 Dow JonesAustralian SAM Sustainability Indexand the Wall Street Journal Asia 200survey rated CCA as one of the top 10public companies in Australia basedon five leadership criteria.

But we also recognise we have a way togo. We are committed to combininggood business with strong values. Weare conscious of our responsibility to allour stakeholders and promise to reportour progress regularly.

David Gonski AOChairman

3

The plans for change and expansion I developed when I joined CCA in2001 accelerated in 2006. On thebusiness front we finished 2006 with avery strong performance in the secondhalf, thanks to the commitment of ourpeople, an excellent acceptance of newproducts like Coca-Cola Zero andpricing improvements which resultedin significant market share gains,particularly in Australia.

ProductsThe success of Coca-Cola Zero, as wellas the success of other new productslike Goulburn Valley fruit juices andPumped, a lightly flavoured water,have been driven by consumers’ desirefor healthier products. Consumers alsoresponded well to our smaller portionsizes for our Coca-Cola trademarkproducts – slimline cans and 250mlglass bottles.

I am looking forward to the new phasein our growth in the premium alcoholicbeverages market. CCA is fullycommitted to being a wholly responsiblecorporate citizen in all aspects of themanufacture, sales and distribution ofalcoholic beverages products.

We have made our business moresustainable, maximising the efficiencyof our water use and using less raw

materials for packaging. We havesaved significant volumes of wateracross many of our operations andensured our sources of spring water for bottled water are strictly monitoredand protected. We will install state-of-the-art energy and water savingtechnologies, including rainwaterharvesting tanks, in our two newdistribution centres in western Sydney.We are asking governments tointroduce incentives such as accelerateddepreciation for these industrial tanks,so that all new industrial buildings canbe made more sustainable.

After good efforts with water savingsand reductions in packaging materials,we have now turned our attention toenergy savings.

A focus on Occupational Health andSafety across the Group resulted inCCA becoming a safer place to work.There were significant reductions inlost time injuries, particularly inAustralia and SPCA.

CommunityAs you will see from this report, CCAis putting back into the community.I was particularly pleased with theMount Franklin “pink lids”campaignto raise awareness of breast cancer.We have pledged $100,000 each year

for the next three years to theNational Breast Cancer Foundation inAustralia for research into this disease.I have also seen first-hand the greatwork of the Rugby Youth Foundation,which we helped fund through ourCoca-Cola Australia Foundation.I am looking forward to the outcomeof Dr Dick Telford’s medical researchproject into the effects of sedentaryliving on children, again funded by our Foundation. In so many otherareas in our communities I believe we are making a real difference.

FutureSustainability, defined in the businesscontext, means delivering goodreturns to our company’s owners anddoing the right and decent thing by allour stakeholders. We will continue tobe an efficient and profitable business,and we are committed to making thebusiness more sustainable in everyarea in which we operate.

Terry DavisGroup Managing Director

Message from Group Managing Director

Terry DavisGroup Managing DirectorCoca-Cola Amatil

4

Our commitment: To conduct business in ways that protect andpreserve the environment and to integrate principles of environmental stewardship andsustainable development into our businessdecisions and processes.

Achievements 2006• Water Savings Action plans submitted to the NSW,

Queensland, South Australian and Victorian governments.

• Installed “dry lube”or waterless line lubrication into 12 operations in Australia saving 40 megalitres of water(or 40 olympic swimming pools).

• Production of all carbonated and non-carbonatedbeverages (including soft drinks, water, sports drinks and juice) in Australia achieved a ratio of 1.55 litres ofwater used to make one finished litre of beverage –considered world’s best practice.

• Established a Water Strategy Team in Australia to analyse and evaluate all aspects of water use andlaunched a Water Policy for Australia.

• Lightweighting of PET bottles resulted in the saving of approximately 18,000 tonnes of PET since 2003.

• New cardboard trays “Crays”resulted in a 53% reduction in cardboard and a 63% reduction in glue.

• Sydney Water “Every Drop Counts”joint winnerInnovation category.

• Finalist in Queensland Environment Protection Agency’sSustainable Industry Awards.

• Winner of Packaging Evolution Awards’ CommunityPartnership Action category.

Our commitment: To provide products and services that meet thebeverage needs of our consumers. In doing this, we provide sound and rewarding businessopportunities and benefits for our customers,suppliers, distributors and local communities.

Achievements 2006• Australian and New Zealand sales of Coca-Cola with

no sugar (diet Coke and Coca-Cola Zero) reached 34% of total cola volume.

• Introduced smaller portion size bottles and cans in Australia.

• Initiated “thumbnail”Daily Intake (DI) nutrition labels on the front of Coca-Cola brand cans and bottles inAustralia and New Zealand.

• SPCA lodged anti-dumping applications with the Federal Government against cheap imported processed fruit and tomatoes.

• Entered into an agreement in December 2006 to phase out sugar soft drinks from New Zealand high schools. (In2004 CCA voluntarily removed all carbonated soft drinksfrom primary schools in Australia and New Zealand.)

• Continued the reduction of net energy density in CCAbeverages in Australia.

• Since 2001, revenue generated from non-carbonatedbeverages and food has grown from 5% to 32% of total revenue.

Marketplace

The four global pillars

4

Environment

5

Our commitment: To foster an open and inclusive work environment where a highly motivated, productive and committed workforce drivesbusiness success through superior execution.

Achievements 2006• Lost time injury rates in Australia dropped by 20%.

• SPCA reduced lost time injury rates by 50% over the past three years – a record result.

• CCA Australia created an apprenticeship scheme to takeon 20 new apprentices in 2007.

• Child care services and superannuation were madeavailable under salary sacrifice in Australia.

• Two Female Leadership Forums were held in Australia forleadership development for high potential women.

• Indonesian plants were awarded Golden Flag certificates,the highest recognition from the Indonesian Government for Occupational Health and Safety management.

• In Indonesia HIV/AIDS prevention programs were rolled out across several plants.

• In Papua New Guinea, CCA offers voluntary workplacetesting, counselling and education for HIV/AIDS. The Coca-Cola system offers to pay for most of the cost of anti-retroviral drugs if they are needed by employees.

• In New Zealand CCA launched a ‘10,000 Step Challenge’which encouraged employees to walk 10,000 steps per day.

Our commitment: To invest time, expertise and resources to provide economic opportunity, improve the quality of life and foster goodwill in our communities through locally relevant initiatives.

Achievements 2006• SPCA launched a $1.75 million water fund

for drought-stricken farmers in the Goulburn Valley.

• Mount Franklin became a Platinum Partner with theNational Breast Cancer Foundation, pledging $100,000 a year for three years for breast cancer research.

• The Australian Literacy and Numeracy Foundation’sRemote School Project, funded by the Coca-ColaAustralia Foundation, won Best Community Project in the 2006 Ethical Investor Sustainability Awards.

• CCA Australia initiated a new National CommunityEngagement Strategy.

• Employee donations in Australia’s Thirst For Givingprogram reached $58,000.

• The Coca-Cola Australia Foundation’s Community Awards funded Queenslander Robyn Sanewski andParalympian Michael Milton to walk the Kokoda Track.

• The Coke system along with the Clinton Foundation developed new programs for HIV/AIDS in Papua New Guinea.

• The Coke system entered a silver partnership withLandcare Australia.

• In Indonesia the Coke system launched the Cinta Air(Love Water) Program to provide clean water supply to the district of Bekasi.

• In South Korea the Coke system “Water Team”ofemployees worked with environmental experts and NGOs on threats to water resources.

• Neverfail Springwater in Western Australia launched aprogram with Neighbourhood Watch.

Community

5

Workplace

6

Key Business Drivers (see 2006 Annual Report)

1. Grow our share of consumption of non-alcoholic beverages

2. Develop a material presence inpremium alcoholic beverages

3. Grow our customer relationship capabilities

4. Develop world class operating systems

5. Ensure the sustainability of our business platform

Change and expansionSince 2001 CCA has rapidly diversifiedits portfolio of products, growing bothorganically and through acquisitions.In that time, revenue generated fromnon-carbonated beverages and food hasgrown from 5% to 32% of total revenue.

In the past five years acquisitions have included New Zealand’s RioBeverages; Neverfail Springwater;Peats Ridge Springs and Palm Springs water companies; Quirk’sRefrigeration; Crusta Fruit Juices;Grinders Coffee; and SPCA, Australia’slargest producer of packaged ready toeat fruit and vegetable products.

In 2006, CCA entered the premiumalcoholic beverages sector with theformation of a joint venture company,Pacific Beverages, with SABMiller.Pacific Beverages began selling PeroniNastro Azzurro, Miller Genuine Draftand Pilsner Urquell into the Australianmarket in October. CCA entered intoan agreement with global spiritsdistributor Maxxium, to sell anddistribute its premium brands,including Jim Beam, Remy MartinCognac and ABSOLUT VODKA. InApril 2007, CCA’s Adelaide operationsat Thebarton began manufacturing Jim Beam ready-to-drink (RTD)brands, including Australia’s numberone selling RTD, Jim Beam and Cola.

2006 Results Summary• Net profit, pre significant items,

up 0.9% to $323.5 million

• EBIT up 1.7% to $580.5 million

• Beverage revenue increased 6.9% to $3.9 billion

• Total revenue increased by 8.2% to $4.4 billion

• Full year dividend has beenincreased by 3.2% to 32.5 cents per share, fully franked.

• In the second half EBIT grew by 8.6%.

Australia: delivered full year revenuegrowth of 7.7% on volume growth of 3% with EBIT of $433.9 million.The major impact was the increase in commodity costs with Australiasuccessfully recovering close to $100 million in commodity driven cost increases. The cola category was a stand out with Coke trademarkrevenue growing by a record 9%driven mainly by the success of Coca-Cola Zero.

New Zealand and Fiji: in local currency,New Zealand EBIT was broadly flat,with second half trading improving by 15%, driven by the success ofCoca-Cola Zero and the launch ofPowerade Isotonic. Fiji experienced asmall decline in earnings for the yearas a result of reduced consumerdemand following political unrest in the country.

South Korea: underlying earnings of$18.0 million were an improvementafter a loss of $9.2 million in 2005.

Indonesia and PNG: a full year EBIT of $17.6 million was a significantturnaround in profitability, thanks to a very strong second half. Secondhalf earnings were $29.2 million,only marginally behind the record$30.6 million result achieved for the2005 second half.

SPC Ardmona: a strong result withEBIT of $46.2 million, which wasahead of expectations. The $15 milliondistribution centre opened inShepparton in November and isexpected to generate savings of morethan $2 million per annum.

Our business

7

2006 Operating ReviewCarbonated BeveragesAustralia: a year after its launch inJanuary 2006, Coca-Cola Zero hascaptured 13% of the cola category,driving CCA’s total cola market shareup by two points, from 75% to 77%.The Coca-Cola trademark revenuegrew by 9% in 2006 driven in part bythe success of the new slimline cansand the 385ml screw top glass bottles.

New Zealand and Fiji: Coca-Cola Zerowas launched in New Zealand inJanuary, and outsold diet Coke bySeptember. Non-sugar cola volumesgrew by 24% and represent 34% ofcola volumes.

South Korea: total volume declined by 4% mainly due to the productextortion event in July, which led to a product recall and negative media.

Non Carbonated BeveragesAustralia: the segment deliveredstrong volume growth of 9%, and now accounts for 22% of CCA’sAustralian volumes. NeverfailSpringwater acquired the assets ofAustralia’s second largest bottledwater business, Palm Springs.

Both Mount Franklin and Pump grew volume around 15%.

The launch of Powerade Isotonic drove volume growth of 25%.Goulburn Valley juice grew stronglyand two Pumped flavoured waters,drove total Pump volumes over 20%in the second half of the year,becoming the number one and twoselling functional flavoured waters.

New Zealand and Fiji: Kiwi Blue waterand Powerade both grew volume bymore than 20%. Juice continued toimprove in profitability.

Indonesia and PNG: new products,including Frestea Frutcy, Frestea GreenTea and Powerade Isotonic boostedmarket share and improved revenueand EBIT mix of the product portfolio.

South Korea: launches of Minute Maid flavour extensions, Haru Green Tea, and Powerade flavourextensions contributed to solidprogress in the segment.

FoodSPC Ardmona: Goulburn Valley FruitSnacks enjoyed solid growth. Cheapimported fruit and vegetables underprivate labels continue to put pressureon margins.

SitesQueenslandRichlands (Brisbane) – beverages

NSWSmithfield (western Sydney) – beveragesNorthmead (western Sydney) – beveragesPeats Ridge Springs – spring water

VictoriaMoorabbin (Melbourne) – beveragesBayswater (Melbourne) – beveragesMentone – distribution centre

South AustraliaThebarton (Adelaide) – beveragesWaikerie – beverages

Western AustraliaKewdale (Perth) – beverages

IndonesiaCitibungBanjarbaruMedanSemarangSurabayaBaliBandungPadangLampungMakassar

South KoreaYeojuKwangjuYangsan

FijiSuva

Papua New GuineaLae

New ZealandAuckland (2 sites)Christchurch (2 sites)Putaruru

SPC ArdmonaSheppartonMooroopnaKyabram

INDONESIA

SOUTH KOREA

PAPUA NEW GUINEA

AUSTRALIA

NEW ZEALAND

FIJI

8

StakeholdersAs a Top 100 company listed on the Australian Stock Exchange with a market capitalisation of over $6 billion,18,000 employees and access to more than 280 million consumers through more than 600,000 active customers across our Group, our impact on our stakeholders, and their impact on us, is substantial.

CCA’s stakeholders include consumers, customers, employees, shareholders, suppliers and local communities, and also those groups and Non-Government Organisations which have an interest in the products we make and sell. These includehealth and environment organisations, water experts, regulators, bureaucrats and local, state and federal governments.

While CCA is an international company, our operations are in local communities. We aim to be a local business; supportinginitiatives and partnerships that are relevant and valuable to the communities in which we operate. We look to build long-term relationships with all of our stakeholders based on trust and shared goals.

Our engagement with stakeholders takes many forms – from providing support for social activities and local sporting teams toinvesting in national conservation programs, talking to our consumers and our customers, establishing dialogue with experts inareas like water research and health; and providing assistance in times of natural disaster. In turn, these actions help to sustainour business performance by strengthening local economies and improving business efficiency, ultimately leading to increasedshareholder return.

Stakeholder Engagement

Consumers – 283 million people Consumer Information Centre, company websites; consumer hotlines; focus groups; planttours; consumer surveys; research groups; promotions; consumer education campaigns.

Customers – 600,000 businesses National Contact Centre, customer satisfaction surveys; dedicated account managementteams; company website; customer events; promotional support; customer ordering websites.

Employees – 18,000 staff Intranet; employee engagement surveys; internal communications; messages frommanagers; awards ceremonies; personal development plans; company website.

Communities – local, national and international National community engagement strategy; local hotlines; dedicated websites; newslettersand flyers; partnerships; sponsorships; scholarships; public lectures; plant tours; companywebsite; advertisements in local media.

Government – local, state, federal and international Public policy debates; meetings and discussions; trade associations; advisory councils; local chambers of commerce; council meetings; political party conferences.

Shareholders – institutional and individual investors Annual General Meeting; ASX announcements; dedicated investor hotline; analystbriefings and roadshows; company website.

Suppliers – companies supplying ingredients, Supplier agreements; quarterly supplier review; joint project work.packaging, equipment and services

Charitable groups and community organisations Coca-Cola Foundations; memberships; corporate philanthropy and donations; Thirst forGiving program (Australia); staff volunteering days; natural disaster relief efforts.

NGOs, academics and industry peers, particularly Industry committee representation; conference presentations; industry group meetings;in areas of health and the environment correspondence; advisory councils.

The Coca-Cola Company – partner, Senior management meetings; Top-to-Top; Global Quality Standards Board; joint projects; shareholder, supplier best practice information sharing.

Our business continued

9

We Work with OthersAustralia• Signatory to the National

Packaging Covenant

• Member of Australian Food andGrocery Council EnvironmentCommittee and PackagingStewardship Forum

• Signatory to the GreenhouseChallenge Plus Program

• Member of the Packaging Council of Australia

• Member Australasian Bottled Water Institute

• Member Australian Beverages Council

New Zealand• Signatory to the National

Packaging Accord

• Member of New Zealand Food and Grocery Council

• Member of the New ZealandBusiness Council for SustainableDevelopment

• Member of Environmental Beverage Action Group

• Member of the New Zealand Juiceand Beverage Association

• Member of Keep New Zealand Beautiful

• Signatory to the New Zealand Food Accord

• Member of the New Zealand Food Industry Group

• New Zealand Organisation for Quality

• Packaging Industry Advisory Council

Indonesia• Member of the Indonesia Soft Drink

Industry Association

• Member of the Indonesia FoodCommunication Forum

• Member of the Coalition of Food and Beverage Producers of Indonesia

Korea• Korea PET Bottle

Recycling Association

• Korea Metal Can Recycling Association

• Korea Foods Industrial Association

• Korea Management AssociationRegistration & Assessments

• Korea Environmental Engineers Federation

Working with the Coca-Cola SystemCoca-Cola was invented in Atlanta,Georgia, in 1886. Today The Coca-ColaCompany (TCCC) is the world’sleading soft drinks company,producing and selling four of the fivebest-known soft drinks brands in theworld, Coca-Cola, diet Coke, Spriteand Fanta, which are familiar to peoplein more than 200 countries.

TCCC makes and sells the concentrateand beverage base to its 300 or morebottlers around the world, includingCCA. The bottlers produce the trademarkCoca-Cola products, then sell anddistribute them in their markets.

TCCC has a 32% shareholding inCCA. As one of the Coke system’smajor bottlers, CCA works closelywith TCCC both across the globe and in Australia in many areas likemarketing and product innovation,corporate responsibility andsustainable development.

CCA participates in the annual Top-to-Top meetings and other global councils in the Coke system.

TCCC and CCA work together onmany projects, including the Landcarepartnership in Australia, the Cinta Airwater program in Indonesia, HIV/AIDSprograms in Papua New Guinea andIndonesia and the funding andmanagement of philanthropicFoundations (see Community).

While TCCC does not own or manage most bottling companies,it makes every effort to positivelyinfluence environmental activitiesthroughout the global Coke system.It produces an annual environmentalreport (www.coca-cola.com) andworks closely with its bottling partners to develop strategies andshare best practices, particularly in the major environmental challenges of water, packaging and energy andclimate protection.

10

Engaging With Our CommunitiesIn 2006, CCA began a new NationalCommunity Engagement Strategywhich aims to build good relationshipswith every community in which weoperate. We have set up a phonenumber, 1800 LOCAL1 for localresidents to call us. We also correspondwith our neighbours to seek theirfeedback on our local activities.

CCA pioneered the strategy inBayswater,Victoria and the communityprovided valuable feedback on ouroperations. Suggestions on how wecould improve were implemented.

At Peats Ridge north of Sydney, CCAis a local water user and we own abottled water business. We regularlycommunicate with our neighboursand we acknowledge communityconcern about how the groundwaterresource is used and shared. We arefully committed to ensuring thesustainability of this valuable resourceand by law, we monitor our dailywater use and undertake rigoroushydrogeological surveys of the source.Our daily standing water levels arereported to local and stategovernments on a quarterly basis.

We sponsor the local Peats Ridge firebrigade, undertake maintenance workon the local school, sponsor the localchamber of commerce Golf Day forcharity and the local Lions Clubcharity fundraiser for children withspecial needs.

We proposed to fund a communitywater monitoring system, under which we will fund the installationand maintenance of equipment tomonitor and analyse water extractionand levels for other users.

Our Proud Partnership WithTaronga ZooWe engage actively with ourcustomers, local government and industry groups to supportenvironmental initiatives and projects via sponsorship, commercialagreements, partnerships andmemberships. This is exemplified by our 15-year long and beneficialpartnership with the Zoological ParksBoard of New South Wales (ZPB).Together, CCA and the ZPB supportthe Chimpanzee Park at Taronga Zoo.

As well, CCA and Taronga Zoo haveestablished a recycling bin placementand bin signage trial around the Zoo,encouraging visitors to ‘do the rightthing’ and reinforce the message thatwildlife and the environment areunder threat from litter and loss ofnatural resources.

Our work with the Zoo also helpsraise awareness of threats facingchimpanzees and we are workingtogether on a number of initiatives,including incorporating productsmade of recycled PET bottles into theexhibit for behavioural enrichmentand erecting a viewing platform andboardwalk made entirely out ofrecycled PET.

CCA’s support of the chimpanzeesextends to ‘in-situ’ research andprotection programs in Ngamba,Uganda. The ZPB is one of the fivefounders of a chimpanzee sanctuaryon an island in Lake Victoria whereorphaned chimpanzees are beingrehabilitated for release. Partner fundsare used to purchase new equipmentand to allow Taronga keepers andeducation staff to spend time workingat the sanctuary.

Over the years our relationship with Taronga Zoo has evolved from a traditional “sponsorship”into a true partnership which fulfils thecommercial, brand and socialresponsibility objectives of both parties.

The partnership resulted in CCA being named the 2006 winner of the PackagingEvolution Awards CommunityPartnership Action Category.

Our Business continued

11

CCA has a commitment to bestpractice in corporate governance and business conduct. A detailedexplanation of CCA’s CorporateGovernance Statement, the maincorporate governance principles and practices followed by CCA, can be found in the 2006 Annual Report.

CCA, which is listed on the AustralianStock Exchange, regularly reviews itspractices to ensure the companycomplies with relevant securities lawsand corporate governance standards.

CCA has established a formal Code ofConduct which requires managementand employees to adopt high ethicalstandards in all of CCA’s activities. It isalso expected that CCA’s suppliers willenforce a similar set of standards withtheir employees.

CCA is committed to keepingshareholders informed about strategicobjectives and major developments,which we do through the ASX,company publications, the AGM, thecompany website (www.ccamatil.com)and the investor contact number (61 2 9259 6159).

Board of DirectorsCCA’s Board represents shareholdersand has the ultimate responsibility formanaging CCA’s business and affairs tothe highest standards of corporategovernance and business conduct.

In 2006, the Board consisted of eightmembers – seven Non-ExecutiveDirectors and one Executive Director.They were David Gonski AO (theChairman, a Non-Executive Directorand independent from TCCC); JillianBroadbent AO, Wal King AO, David

Meiklejohn and Mel Ward AO (all Independent Non-ExecutiveDirectors), Irial Finan and GeoffreyKelly (TCCC’s nominees and Non-Executive Directors) and Terry Davis(CCA Managing Director and anExecutive Director).

Details of the role and responsibilitiesof the Board of Directors can be foundin the 2006 Annual Report.

Board CommitteesCCA’s Board Committees includeAudit & Risk; Compliance & SocialResponsibility; Compensation;Nominations and Related Parties.

In 2006 the Compliance and SocialResponsibility Committee was formed.Under social responsibility, theCommittee reviews reports and makesrecommendations to the Board, whereappropriate, in respect of politicaldonations, community sponsorshipand social issues which may berelevant to CCA.

The Committee also reviewscompliance with laws includingoccupational health and safety,environmental protection, productsafety and trade practices, as well as reviewing policies reflecting onCCA’s reputation, including qualitystandards, dealing in the Company’ssecurities and disclosure.

Being an Ethical BusinessThe Code of Conduct sets standards ofbehaviour expected from everyone whoperforms work for CCA – Boardmembers, employees and individualcontractors – and encourages everyoneto achieve the highest levels of honesty,trust, integrity, respect and cooperation.

The Code, which is distributed toemployees when they start and mustbe acknowledged upon receipt, is alsoavailable on CCA intranet sites. Itcovers values, standards andresponsibilities, and encouragesemployees to report fraud or corrupt orinappropriate behaviour, as well as torecognise conflicts of interest.

CCA has many other policies,including Water, Environment,Working Together, Privacy, OHS,Computer Usage and Purchasing(www.ccamatil.com).

CCA also has a Policy on Trading inCCA Shares for Directors and seniormanagement. In 2006 it was updatedto more specifically prohibitspeculative or short-term trading in the Company’s shares andtransactions in the derivative marketsinvolving exchange traded options,share warrants and similarinstruments. As well, entering into“protection arrangements”for CCAshares are prohibited at any time.

Political DonationsCCA believes that the democraticprocess is strengthened if politicalparties have the resources to developpolicy positions. CCA’s approach is tofund the major political parties on anequal basis.

Our donations are reported publiclyevery year in the Australian ElectoralCommission returns. Details on ourdonations for 2006 are at:www.aec.gov.au.

Governance

12

We live in changing climate times.The world is warming, fresh waterreserves are fragile and greenhousegas emissions are taking their toll onthe environment.In every country in which we operate,and particularly in the world’s driestinhabited continent, Australia, we arecommitted to developing better systemsof managing our water resources.

The vast bulk of our water use is for human consumption, as a keyingredient in most of our beverages.We have two sources of water for ourdrinks – mains, or “town”water forproduction of our soft drinks, energydrinks, juice and sports drinks andspring water, or groundwater, for ourbottled water.

We have two clear priorities –maintaining the long-termsustainability and quality of springwater sources and maximising mainswater efficiency at our manufacturingsites. With the latter, in Australia webelieve we achieve world’s bestpractice for our industry – on averagewe use just 1.55 litres of water to

produce one litre of beverage (thisincludes all soft drinks, energy drinks,water, sports drinks and juice). Most ofthe water used goes into the beverage,with just over two cups per litre left torun and clean our manufacturing sites.Each year we work hard to bring thisratio down.

When it comes to spring water, orgroundwater, CCA believes that there needs to be urgent reform of themanagement of Australia’s aquifers.CCA strongly believes all groundwaterusers should be licensed and largeusers should be metered andmonitored. CCA invests ininfrastructure, stringent monitoring ofits water use and undertakes rigoroushydrogeological studies at its watersources. Licence conditions at CCA’swater sources explicitly state that anytaking of water must be sustainable.

Focus on water

SAVING WATER AT OUR PLANTSSome of the water savings initiatives atAustralian operations include:

• Dry lubricant technology, based onTeflon® suspended in a unique oilformulation, replaces water forlubrication on some of our beveragefilling lines.

• The machines that rinse bottles beforefilling are outfitted to recirculatewater, and pure water is only used forthe final rinsing, or the last 25% of thejets over which the bottles pass. Thiswater is then collected and used forpreliminary rinsing in the first 75% ofthe water jets.

• Changing the size of rinser nozzles so that less water can get through. The rinser nozzles on one of Richlands’bottling lines have been changed from4mm to 2mm, resulting in a reductionof 75% of water used, or more than 12 million litres (12 megalitres or 12 olympic swimming pools) a year.

• Recycled water from the rinsers is used on site for cooling towers, truckwash areas, floor hose down reels and irrigation.

• Dual flush toilets, waterless urinalsand water saving showerheads areinstalled across some sites, and tapsfitted with aqualock flow regulators.

• Water savings education programs for employees.

13

SPRING WATER – HOW MUCH IS USED?We use a tiny fraction of the spring water, or groundwater, allocated for use across Australia. Annual bottled water production for all water companiesaccounts for less than 0.01% of the total groundwater withdrawn from Australia and New Zealand. As one of many water bottlers in these markets, CCA’s share ismuch less than this.

RAINWATER HARVESTINGPlans to harvest rainwater by installing industrial water tanks are underway for two distribution centres, or warehouses, CCA will construct at Eastern Creek and Northmead in western Sydney in 2007. The water will be used in the warehouseoperations and for irrigation. CCA has urged governments to provide incentives like accelerated depreciation for these tanks, so that businesses can be moresustainable in their water use.

HELPING WITH WATERCCA has donated generous quantities of bottled water to communities hit bydisasters like floods, tsunamis and bushfires, as well as supplying pallets of waterto the volunteer services who are protecting those communities. (see Community)

SPCA set up a $1.75 million Water Fund to help fruit and vegetable growers in theGoulburn Valley survive the drought. The funding for 2007 will cover interest freeadvances to purchase water, subsidies on fruit delivered for processing and accessto 1000 megalitres of water for irrigation.

WATER IS HEALTHYIn many of our markets, the public debate has focused on people choosing healthier food and beverages and undertaking more physical activity. The demand from consumers for our water products – Mount Franklin, Pump, Pumped (a lightlyflavoured water) and Neverfail Springwater – has meant solid growth in theAustralian and New Zealand markets for bottled water of around 15% every year.

PROTECTING WATER CATCHMENT HEALTHIn November 2006 CCA, TCCC and Landcare Australia launched a unique alliance to protect and restore the water quality in catchment areas around CCA’s Australianoperations. TCCC is funding Landcare with $136,500 to enable community workinggroups to clean up, regenerate and maintain water habitats in more than 20 locationsaround Australia. CCA and TCCC staff are also volunteering their time to work onprojects. (See Community.)

BOTTLED WATER AND FLUORIDEThe Australian Dental Association hascalled for parents to give their childrenfluoridated water for the health of theirteeth. Under Australia’s strict food laws it is not allowable to add fluoride to ourspring water brands. We have applied to Food Standards Australia and New Zealand (FSANZ) for permission to add fluoride to a small range of waterproducts to give consumers the choicebetween fluoridated and natural springwater. We have asked the FederalGovernment to fast-track what can be a lengthy process.

RESEARCH INTO WATER QUALITYCCA spends around $60,000 annually withthe University of South Australia’s IanWark Research Institute for research intowater quality. The work provides a betterunderstanding about how to managewater issues such as the formation andremoval of disinfection by-products, andallows us to optimise the performance ofour existing operations. We have beenrunning the research program with theUniversity since 2001.

14

EnvironmentPrinciples• We are accountable for our actions.

• We continuously improveenvironmental performance.

• We integrate sound environmentalpractices into our daily businessoperations in accordance with ourenvironmental standards.

• Our commitment to protecting andpreserving the environment extendsthroughout our organisation.

• We will establish mechanisms tocommunicate effectively withemployees, consumers, governments,shareholders, supply chain partnersand other stakeholders onenvironmental performance.

• We are minimising impact, maximisingopportunity – results of research andnew technology are used to minimisethe environmental impact of ouroperations, equipment, products and packages.

CCA strives to conduct business in a manner that takes into account thevarious sensitivities in all our operatingenvironments. Responsibility for our environmental performance lieswith the Compliance and SocialResponsibility Committee of the Board.

We have undertaken to implementinternationally recognisedEnvironmental Management Systemsthroughout our operations. To date,initiatives have largely centred on ourhigher risk business elements ofmanufacturing, and to a certain extentequipment services and acquisitions.

Performance in our manufacturingoperations particularly with watersavings, has seen CCA emerge as aleader within the Coke system andacross the broader fast movingconsumer goods industry.

CCA collaborates with TCCC at the local level on environmentalmanagement issues. TCCC publishes a separate global environmental report for the Coke system(www.coca-cola.com).

Environmental GovernanceOur environmental governanceplatform stems from ISO14001:2004certified environmental managementsystems, currently in place across theGroup for our key beveragemanufacturing operations.

CCA’s major production operations in Australia, New Zealand and SouthKorea have qualified for certification to the TCCC Quality System forQuality and Environment.

Extensive data collation and reporting mechanisms allow for a continual review of performance and communication of results.Existing key performance areas of water, energy and waste haverecently been expanded to commencebetter representation of performancein fleet, equipment and packaging.Consistent key performance indicatorshave been adopted by all operationswithin the CCA Group, and form thebasis for performance monitoring forthis report.

Our key performance indicators for eachoperation within the CCA Group are:

• Water Usage Ratio (L/FBL)

• Energy Usage Ratio (MJ/FBL)

• Total Solid Waste Recycled (%)

• Total Solid Waste Produced (tonnes)

Baseline performance against thesemeasures has been detailed in thisreview. Refinements to collectionboundaries and reporting timelineswill see a more aligned and consistentrepresentation in subsequent reviews.Explanations for data origins, gaps orvariations to common boundaries,where observed, have been providedin brief.

15

WaterWe have made a number of operationalchanges in our production plants andinvested in new technology to improveongoing savings of mains water.

This has resulted in CCA achievingbest practice in the global Cokesystem for efficient water use. InAustralia in 2006 production of allcarbonated and non-carbonatedbeverages (including soft drinks,water, sports drinks and juice)achieved a ratio of 1.55 litres of water to make 1 finished litre ofbeverage (L/FBL). This compares with Coca-Cola Enterprises in the US,which uses 1.86 L/FBL and the globalaverage for TCCC bottlers of 2.60 L/FBL.

CCA submits water savings actionplans to all Australians states whichcurrently require them – NSW,Victoria, Queensland, South Australia.

In Indonesia Water ResourceManagement systems are beingimplemented to minimise water use inall plants.

CCA is currently preparing a responseto TCCC’s Global Water StewardshipStrategy which will documentinitiatives in water efficiency,wastewater compliance, watershedmanagement, water quality and socialaspects in beverage operations acrossthe Group.

EnergyWhile energy costs are a very smallpercentage of CCA’s overall cost base,energy reduction and improvements inenergy efficiency are key componentsof each Australian state-based corebusiness plan.

CCA in Australia is a voluntarymember of the AustralianGovernment’s Greenhouse Challenge Plus Program and reports annually on greenhouse gas (GHG) emissions and reductions.CCA also participates in various state-based reporting programs examiningenergy consumption, as required.

In 2006 CCA Australia participated in the Carbon Disclosure Project (CDP) for the first time. The CDPprovides a secretariat for the world’slargest institutional investorcollaboration on the businessimplications of climate change. Thewebsite (www.cdproject.net) is theworld’s largest registry of corporateGHG emissions.

In 2006, GHG emissions from CCA’s Australian carbonated beverage business and the Victorianjuice business was reported as 106,779tonnes of CO2. Our KPI for energyefficiency is tonnes of CO2 equivalent(CO2e) emissions per kilolitre offinished beverage. In 2006 our KPIvalue was 62.86 kg CO2e/kFBL, animprovement on our 2005 KPI of 0.31 CO2e/kFBL.

In 2007 energy efficiency will emergeas CCA’s lead environmental keyperformance indicator.

Other areas where we are gatheringinformation to quantify impacts andidentify opportunities centre on fleetfuel consumption and our equipmentdivision. We aim to report morecomprehensively on these areas in the future.

WasteWaste from operations includesunused packaging, paper andcardboard, timber, pallets, scrap metal,canteen waste, fruit and vegetableprocessing pulp and residue fromwater and wastewater treatmentprocesses. Waste is either returned tothe supplier, recycled through marketsor disposed into landfill.

In Australia and New Zealand more than 80% of waste is recycled,thanks to well-developed recyclingmarkets and defined wastemanagement systems onsite. Mostfruit processing waste at SPCA isrecycled as stock feed.

In our developing country operations,waste is recycled where there is aviable market. Materials recycledinclude aluminium, PET, cardboard,glass, scrap metal, timber, stretch andshrink film, plastic caps and paper.In future we will collaborate withsuppliers to reduce waste itemsbrought on site.

CCA undertook a waste audit of head office in Sydney which resultedin an internal staff educationcampaign around recycling.

16

PackagingCCA uses PET, glass, aluminium and cardboard as its major packagingmaterials. All contain recycledmaterial. In 1994 CCA was the firstcompany in the world to package afood grade product using recycledcontent in PET and since that time we have continued to make significantprogress in reducing the amount ofmaterial used in our packaging tominimise environmental impacts,while maintaining the integrity of our product.

In 2006 we reduced our product to packaging ratio by weight from 15:1 in 2005, to 14.8:1, thanks tolightweighting and packagingreduction initiatives.

In recognition for our initiatives CCA was awarded HighlyCommended in the BeveragePackaging Action category of the 2006 Packaging Evolution Awards.

National PackagingCovenantCCA is a founding member of theAustralian National PackagingCovenant (NPC), a joint initiative setup in 1999 between government andindustry to manage the environmentalimpacts of consumer packaging.

In our 2006 NPC Action Plan CCAfocused on four areas (for details seewww.ccamatil.com):

• to significantly improve the integrityof our data through improved datacollection.

• implement the Environmental Codeof Practice for Packaging (ECoPP).

• drive the formation of the AustralianFood and Grocery Council’sPackaging Stewardship Forum.

• raise the profile of away from homerecycling, with our Luna Park publicplace recycling trial.

CCA is also a signatory to thePackaging Accord in New Zealand,where we have joined forces withindustry, government, wastemanagement and other non-government organisations as activemembers of the Accord and theGovernment-led Litter Alliance.

The New Zealand business has alsoestablished a beverage industry actiongroup (EBAG) to address and achievetargets set under the Packaging Accord.

Public Place RecyclingCCA wants to see more of ourpackaging recycled and will continueto look at all proposed environmentalinitiatives. We believe that anysolution to beverage waste must havean overall environmental benefit.

At present, Australia’s successful kerbsidecollection system contributes around40% of total packaging recycling.

Australians recycle around 70% of thebeverage containers they consume athome – they do so because there is aconvenient and low-cost process forthem to use. We need to have aconvenient process for them whenthey are away from home – the rightbins in the right places with the rightrecycling messages.

CCA’s “Refresh, Recycle, Renew”campaign launched in Australia in 2004, is aimed at encouraging the implementation of away fromhome recycling.

SAVING ENERGYCCA’s National Contact Centre in St Leonards, Sydney fitted a “Light Eco”device to their lighting board whichcontrols all lighting in the centre. Thisdevice saved more than 30% of the power used by the fluorescent lights with minimal effect on the lighting levels.Not only did this reduce CO2 emissions by an estimated 102 tonnes per year, italso resulted in savings of around $10,000 a year in energy bills.

The company which provided the Light Eco device coordinated theplanting of 102 trees on behalf of CCA to signify the CO2 emission saving.

LESS PACKAGINGSince introducing lightweighting of PET bottles for carbonated soft drinkproducts in 2003, CCA Australia hassaved 18,000 tonnes of PET.

A number of other packaging initiativeshave commenced reducing the amountof corrugated board, stretch and shrinkfilm required to package our products.

CCA developed trials to test a new innovation in packaging, the 1.25 litre “cray”, or cardboard tray, whichreduced cardboard by 53% and glue by 65%, and improved functionality.

Environment continued

17

In 2006 we worked with our customersto expand the availability of recyclingbins, to implement staff wastemanagement education programs,waste audits, signage, and publicawareness campaigns. To date,recycling schemes have beenimplemented at the following sites:First Fleet Park, Taronga Zoo, AustraliaZoo, Luna Park Sydney and ThredboAlpine Resort.

Refresh, Recycle, Renew also providesrecycling bins for special events suchas the Tamworth Country MusicFestival and The Perth RoyalAgricultural Show.

Some groups have suggested a returnto the container deposit schemes thatwere phased out in the 1980s. Ourview is that container deposit leviesare inconvenient for consumers andwould divert valuable material fromkerbside collection, undermining thefinancial viability of the system andresulting in increased costs toratepayers. Beverage containers makeup only 3% of the volume of kerbsiderecycling material but contribute 25%of the value.

We believe the key challenge is to buildon the success of the kerbside collectionsystems, not to undermine it.

Operational KPIsCCA sets operational targets and KPIsfor all of its plants to drive efficiencyand improve performance. Thefollowing data has been compiled from existing environmentalperformance metrics data collectedwithin each of the operations. Data hasbeen presented in an aggregated formatin accordance with operational sectors.

The most recent acquisitions/jointventures have not been included.

The summaries presented representbest current estimates and may varyonce data collection protocols havebeen refined. Due to the nature ofmany of the operations, the scope ofdata presented may also vary.

A common data collection protocolhas been developed and will beimplemented in all operations for usein future. This will ensure that datascopes are defined and are asconsistent and comparable as possible.

Commentary on data gaps in data presented1. Differences in scope of reporting.

For example, energy data from someoperations includes energy used bywarehouses and distributioncentres, whereas other operationsisolate energy consumption frommanufacturing processes only.

2. Where mentioned weight estimatesfor waste data are based on volumesand compaction rates. Wherepossible, contracts have now beenmodified to ensure actual weightsare provided. Where this is notpossible, annual bin audits will beconducted to verify compaction andweight estimates.

3. Waste data from some operationsalso includes liquid waste fromproduct destruction. In futurereporting CCA is looking to separateliquid and solid waste calculations.

A CLEANER CREEKCCA Australia sponsored a three year,$105,000 program to restore and upgradeToongabbie Creek, a watercourse thatruns behind our Northmead plant whichhad become degraded by noxiousweeds. The project, which wascompleted in June 2006, resulted in asafe environment for a colony of BellMiners and Brown Quail and other plantsand animals. The project also involvedconstruction of mass plantings of nativeflora. We will continue upgrading theRedbank Track along the Creek during the next stage of the project.

LESS WASTE TO LANDFILLHalving waste sent to landfill in just four months was one of the impressiveachievements of the environmental team at CCA’s site in Richlands, Queensland.In 2005 we entered a three year totalwaste management agreement withIpswich Waste Services, and the resultwas a 114 tonne, or 37% reduction inwaste for the year, gaining CCA a finalistspot in Queensland EPA’s SustainableIndustry awards. IWS placed a fulltimestaff member at Richlands site who hasdriven the introduction of new technologyincluding a unit to shred cans and PETbottles to improve the value of recoveredmaterials and two new compacters, onefor general rubbish and one for cardboard.

18

Environmental Measures – Full Year 2006Australia (Beverages)

Baseline Figures

1. 2. 3. 4. Measure Unit CSD/NCB NF PRS Crusta

Water Usage Ratio L/FBL 1.53 1.29 1.22 2.47Energy Usage Ratio MJ/FBL 0.29 0.08 0.07 0.56Total Solid Waste Generated Tonnes 5,635 997 78 115Solid Waste to Recycling % 81 62 59 54

1. Carbonated Beverages/Non-carbonated Beverages2. Neverfail3. Peats Ridge Springs4. Crusta• As Crusta is a recent acquisition, the focus has been on establishing data collection

mechanisms, rather than improving performance, hence low recycling rates. 2007 willsee a shift in focus to commence improvements.

Australia (Food)

Baseline Figures

1. 2. Measure Unit SPCA Grinders

Water Usage Ratio L/kg 19.4 0.01Energy Usage Ratio MJ/kg 4.16 2.79Total Solid Waste Generated Tonnes 8215 N/ASolid Waste to Recycling % 85.1 N/A

Performance in the food sector (SPC Ardmona and Grinders) is represented as L/kg and MJ/kg

1. SPCA

• Data on Solid Waste to Recycling includes waste going to stock feed.

• Weight of waste data has been estimated. A new data collection system is now inplace to better record waste data

2. Grinders

• Operations included are production facility and shop in Melbourne, and distributioncentres in NSW and QLD

• Waste data from 06 was not recorded. New arrangements now in place will now seethis reported.

South Korea

Measure Unit Baseline Figures

Water Usage Ratio L/FBL 2.42Energy Usage Ratio MJ/FBL 0.98Total Solid Waste Generated Tonnes 4326Solid Waste to Recycling % 96

Indonesia

Measure Unit Baseline Figures

Water Usage Ratio L/FBL 3.79Energy Usage Ratio MJ/FBL 1.02Total Solid Waste Generated Tonnes 10,526Solid Waste to Recycling % 40

• Total solid waste figure may also include liquid wastes from product destruction,sludges from wastewater treatment and filter media such as activated carbon –hence high weight of waste. This would need to be reported separately in future tomaintain consistency with internal data reporting protocols.

• Water use ratio is high because of the high volume of returnable glass bottles, whichare washed and re-used.

New Zealand

Measure Unit Baseline Figures

Water Usage Ratio L/FBL 1.94Energy Usage Ratio MJ/FBL 0.2Total Solid Waste Generated Tonnes 2,751Solid Waste to Recycling % 87.5

PNG

Measure Unit Baseline Figures

Water Usage Ratio L/FBL 3.09Energy Usage Ratio MJ/FBL 0.16Total Solid Waste Generated Tonnes 558Solid Waste to Recycling % 66

• Waste does not include product destruction, sludges or filter media.

Fiji

Measure Unit Baseline Figures

Water Usage Ratio L/FBL 2.03Energy Usage Ratio MJ/FBL 0.7Total Solid Waste Generated Tonnes 286Solid Waste to Recycling % 83

Environment continued

19

MarketplacePrinciples• We are committed to earning the

trust of our consumers by providing safe, high quality, relevant productsand services that satisfy theirbeverage needs and fit their lifestyles.

• We are committed to marketing andcommunicating credibly and honestlywith respect for and across social,economic, and cultural backgrounds.

• We are committed to supporting our business partners, both local and global, by building sustainable,reliable, consistent, mutually beneficial relationships.

CCA recognises public concern abouthealth issues, particularly in relation tokilojoule-dense diets and the need formore physical activity in the community.To meet changing consumer needs we have significantly diversified ourproduct range. Today water, fruit juice, coffee, sports and energy drinks,sugar-free soft drinks and SPCA’s fruitand vegetable products contribute tomore than 30% of our revenue,compared to just 5% in 2001.

A key changing consumer need is themove to low-kilojoule beverages. Thiswas evident in the hugely successfulAustralia and New Zealand launch ofCoca-Cola Zero, a sugar-free low-kilojoule beverage. Coca-Cola Zerocaptured and maintained 13% of thetotal cola category and has created anew segment in the Australian andNew Zealand markets.

Diet Coke and Coca-Cola Zero, bothsugar-free, now represent 34% of Cokevolume, up from only 20% in 2000.

Product DevelopmentIn 2006 CCA focused on growing its functional/low kilojoule beverages,including water, low kilojoule and no kilojoule brand and productextensions including Coca-Cola Zero,diet Coke, Sprite Zero, Pump, Pumpedflavoured waters, Mount Franklin,Frestea Jasmine and Frestea Green iced teas.

In Australia, 43% of sales have beenfrom these beverages, and 50% of the marketing budget was spent onpromoting them.

While the range of our products and the volume of beverages sold in Australia has expanded markedlysince 2002, we have at the same timelowered the energy density of ourproduct portfolio.

The shift in the product portfolio to lower kilojoule beverages hasresulted in a 13.9% drop in kilojouleconsumption per capita in theAustralian market.

There has also been a focus on smaller serving sizes. In Australia300ml slimline cans, 250ml glassbottles, and 250ml grocery snack packs for carbonated soft drinks have been successfully introduced.

Other successful products launched in Australia included Goulburn Valleychilled juices and 220 gram GoulburnValley fruit snacks. Two flavouredwaters, Pumped, drove total Pumpvolumes over 20% in the second halfof the year, becoming the number oneand two selling functional flavouredwaters in Australia.

In Indonesia successful new products included Frestea Frutcy,Frestea Green Tea and PoweradeIsotonic. In New Zealand Kiwi Bluewater and Powerade both grew volumeby more than 20%.

20

Educating ConsumersIn Australia and New Zealand theCoke system commenced an initiativeto improve nutritional labelling on itsproducts. The new labels on regularand diet soft drinks, juices, teas andsports drinks will have a “thumbnail”on the front bearing the kilojoulecount of the product.

The initiative is a result of focus groupresearch of targeted consumer groups,including mothers, who said they wantquick, easy information about thekilojoule content of foods.

The “thumbnail”information also has information on how much eachproduct contributes to Daily Intake(DI) for energy, as set out by theNational Health and Medical ResearchCouncil. The DI will provideconsumers with a science-based non-discriminatory system.

In Australia, New Zealand and South Korea, a consumer educationcampaign was launched – called MakeEvery Drop Matter (Australia and NewZealand) and Make Every Drop Count(South Korea). This included:

• An advertising campaign aimed at educating consumers about the broad range of products offeredby CCA through magazines andonline channels.

• The launch of a dedicated nutritionwebsite and on-line newsletteraimed at educating consumersabout our products atwww.makeeverydropmatter.com.au(Australia);www.makeeverydropmatter.co.nz(New Zealand) and

www.makeeverydropcount.coca-cola.co.kr (South Korea).

• An employee communicationprogram with an employeeinformation booklet.

TCCC has also funded research bothlocally and internationally through the Beverage Institute for Health and Wellness which supports nutritionresearch, education and outreach, witha primary focus on beverages,www.thebeverageinstitute.org.

Product QualityIn manufacturing CCA has introducedpolicies and procedures, robustsystems and proven technologiesalong with trained people to ensurethat our products exceed all companystandards and legal requirements priorto leaving our facilities.

Improving freshness of our productsand associated PET carbonation issuesis our number one product qualityfocus. The Coke Best Fresh programwas introduced in 2005 to address this issue. It recognises that handlingand storage of our products aftermanufacture can impact on theirquality and ultimately influence theexperience our consumers have.

The stock age and rotation programs that were reintroduced as part of the Coke Best Freshinitiative are working well.

Food SafetyAustralia and New ZealandProtecting public health and safety is a fundamental aspect of foodmanufacture and all food businessesmust comply with the requirements of the Australia New Zealand FoodStandards Code and have their FoodSafety Programs certified through anindependent audit process.

CCA has a Hazard Analysis andCritical Control Point based programwhich sets out specific handlingcontrols related to the receipt, storage,processing, display, packaging,transportation, disposal and recall ofour products. Other requirementsrelate to the skills and knowledge ofour employees and their supervisors,their health and hygiene, and thecleaning, sanitising and maintenanceof our premises and equipment.

Marketplace continued

21

Marketing PoliciesWe recognise parents’ roles asgatekeepers of and decision makersabout what young children eat anddrink. For this reason in Australia and New Zealand the Coke systemensures products are not advertiseddirectly to children younger than 12 years old. This means:

• Our advertisements are notscreened during children’sprogramming times (weekdayafternoons and Saturday mornings)or during any program where themajority of viewers are under theage of 12 years.

• We do not publish ouradvertisements in publicationsaimed at children under the age of 12 years.

• When running sampling activity to promote our products, we do not provide samples to childrenunder the age of 12 years unless we have permission from anaccompanying adult.

Since the beginning of 2004 inAustralia and New Zealand we have also had a policy of restrictingproducts available to primary schoolsto water, juice, juice drinks, other non-carbonated beverages and dietsoft drinks. We do not sell carbonatedsoft drinks containing sugar orcaffeine to primary schools forconsumption by students.

The CCA beverages available to highschool students are selected by theirschool communities. In 2006 sugarsoft drinks were withdrawn in mostAustralian high schools, but sugar-freesoft drinks continued to be sold inmany schools.

In New Zealand CCA voluntarilyagreed to stop directly selling fullsugar carbonated soft drinks and full sugar energy drinks to all schools.The phased-out removal began inDecember 2006 and will be completed by December 2009.

Supplier ComplianceAll major CCA suppliers are requiredto comply with The Coca-Cola QualitySystem (TCCQS): Evolution 3. TCCQSstates that suppliers to, and suppliersauthorised by TCCC will abide by allapplicable laws, including local lawsaddressing environment, workinghours, compensation, employees’rights to choose whether to berepresented by third parties, and to bargain collectively and workingconditions inclusive of OHS practices.

Under the Environmental Code ofPractice for Packaging CCA’s suppliersare also educated about theenvironmental impact of packaging.

Responding to ConsumersCCA responds to both customers and consumers in Australia throughthe national contact centre, CokeConnect. The 240-strong team covers24 hours a day, 7 days a week.

The customer service team at Coke Connect receives 1.3 million calls annually and answers them within an average of 10 seconds. The salesteam calls customers on an agreed day and time to take orders, sell newproducts and ensure they have enoughproduct readily available for consumers.

All calls received from customers are logged and monthly reports areproduced and distributed throughoutthe business.

The Consumer Information Centre (CIC) is the independentfunction within Coke Connect thatcaptures consumer feedback. In itsfirst year, 1991, CIC received 5,254phone calls, requesting information on subjects ranging from marketing to packaging, ingredients, nutrition,student brochures, finance and theenvironment. In 2005 the CIC received nearly 115,000 contacts(phone, fax, email, mail), a 22-foldincrease since inception.

The CIC responds in detail, by phone,by email or in writing, to all consumerenquiries within 24 hours, or nextbusiness day wherever possible.Consumer information is fed into theorganisation to Group ManagingDirector level and is shared with theCoke system worldwide via regularmonthly reporting.

CIC: free-call 1800 025 123, via fax on02 9436 8715 or via email tocca_cic_website_contacts@anz.ccamatil.com.

Total kilojoules consumed from CCAproducts per person in Australia per annumdecreased as volume of CCA product soldin Australia increased.

118,169117,192

113,982

110,038

102,323

2002 2003 2004 2005 2006

286

301

323 322332

20

40

60

80

100

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010FCST FCST FCST FCST

77.8 77.0 76.5 75.1 74.5 66.5 64.8 62.4 61.2 59.7

22.2 23.0 23.5 24.9 25.5

19.1 20.6 22.4 23.2 24.0

14.1 14.7 15.2 15.7 16.3

The Changing CCA Product Portfolio for Australia (%)

Sugar Cola Total Diet Cola Totalnumber of kilojoules million unit cases

Coca-Cola Zero

22

MORE APPRENTICESCCA Australia has created anApprenticeship Scheme which willrefresh our trade skills and ensure a knowledge transfer from existingemployees to future trade specialists.Under the Apprenticeship Scheme weexpect to take on 20 new apprentices in 2007.

Principles• We believe in establishing a strong

commitment and direct relationshipswith our employees through open andhonest communications.

• We are committed to ensuring, with our employees, the safety of the workplace.

• We abide by all applicable local labourlaws, including those that addressworking hours, compensation,discrimination and third partyrepresentation.

• We believe in treating our employeeswith fairness, dignity, and respect.

• We value diversity in its broadest sense.

• We believe in providing opportunities for employees to develop personally and professionally.

• We hold each other accountable forperformance at the highest levels.

• We are committed to rewarding our employees commensurate with performance.

CCA employs approximately 18,000 people across the Group.

The rapid expansion and diversificationof CCA’s business since 2001 includinga number of acquisitions, has drivensuccessful programs to transfer keymanagers into the new businesses.As well, leadership programs havebeen rolled out across the Group,and have enjoyed particular success in our developing markets.

CCA initiated new flexibility programsin Australia including making child careservices and superannuation availableunder salary sacrifice. Employees canalso purchase additional annual leaveof up to four additional weeks per year.This has been particularly well receivedby staff with children allowing betterwork-life balance.

The health, safety and wellbeing ofour people is of particular importance,and we have had significantachievements in reducing lost timeinjuries in our Australian operations,and at SPCA.

In Indonesia and Papua New Guineawe are particularly concerned aboutthe impact of HIV/AIDS and we haveworkplace policies in place which bandiscrimination against anyone withHIV/AIDS. In PNG we offer voluntaryworkplace testing, as well ascounselling and education. We alsooffer to pay for most of the cost of theanti-retroviral drugs that ouremployees need for their ongoingtreatment. In Indonesia we focusmainly on prevention, disseminatinginformation, communication andeducation programs for employees.In 2006 these programs weresuccessfully implemented in severalplants/unit operations and willcontinue to other unit operationsthroughout Indonesia. For moreinformation on our work withHIV/AIDS see Community.

Workplace

23

Health and SafetyEach country of operation now has a designated Occupational Health and Safety (OHS)representative responsible forimproving OHS performance.

AustraliaThere has been significant improvement in OHS performance over the last few years. Our safetyculture has strengthened and the OHS Management System (OHSMS) is increasingly embedded in operatingpractices. CCA Australia is targetingAS4801 accreditation by the end of 2008.

A key to the improvement has been a strong commitment from the Australian Executive Team whichreviews OHS performance monthly.

CCA Australia has reduced injury rates,due to our focus in the following areas:

• Implementing plans to reduce highrisks areas such as cash handling(e.g. armed hold-up training),contractor management, forklift andtraffic management plans, machineguarding and manual handling.

• Implementing Corrective Action registers.

• Training employees in theirresponsibilities and risk managementprocesses in order to change theculture around OHS, and to makesafety part of what we do everyday.

SPC ArdmonaSPCA has reduced its LTIFR by 50%over the last 3 years, thanks to afundamental shift in focus to targetworkplace safety. Strategies includedimproved injury managementtechniques, training of Return to Workco-ordinators, more safety training, apro-active rehabilitation program andthe development of a workplaceculture where all employees takeresponsibility for safety.

Building on that recent success, thefocus for SPCA in the next 12 monthswill be on the implementation of andcompliance with the CCA AustraliaOHSMS. SPCA has also committed to the introduction of an EmergencyManagement System at its three sites.

SPCA instituted a trial program withchiropractors from the Soft TissueCentre to focus on Return to Work andmanagement of long term injuries toreduce average time lost.

New ZealandCCA launched a ‘10,000 StepChallenge’ which encouragedemployees to walk 10,000 steps perday. Around 750 employees from atotal employee base of just over 1,000participated. The promotion of ahealthier lifestyle saw many benefits,in particular many of the participantslost significant amounts of weight.

New Zealand also worked towardsgaining ‘tertiary accreditation’ statuswith the Accident CompensationCorporation.

FijiCCA Fiji continues to implement its OHS management systems.

IndonesiaEach unit operation has nowappointed a local OHS manager to implement initiatives which include an OHSMS, OHS reportingsystem, and the development ofemployees’ safety awareness. Morethan 6,500 employees attended SafetyAwareness training.

All plants were audited by theIndonesian Government and receivedthe highest award for OHS, theGolden Flag certificate.

A new policy – No Helmet, No Entry –was introduced in June 2006, wherebyall CCA Indonesia employees whodrive company motorbikes arerequired to wear a helmet at all times,and all employees, contractors andvisitors entering company premises ona motorbike are also required to weara helmet.

South KoreaOHS audits were conducted at all sites and actions put in place toimprove OHS, which included: rear cameras installed on all trucks;implementation of methods to reducelifting injuries; increased participationin OHS training programs; andimplementation of improved personal protective equipment.

24

HIV/AIDS PREVENTIONCCA Papua New Guinea has aWorkplace HIV/AIDS Management and Prevention Policy which includes:

• Educational and awareness campaign;

• Availability of free condoms;

• Voluntary testing for all employees;

• Confidential counselling service forHIV infected employees;

• Financing most of the cost of anti-retroviral drugs for all infected employees.

Talent DevelopmentAustraliaCCA offers a range of talentdevelopment plans includingIndividual Performance Plans whichare reviewed with employees threetimes a year; Individual DevelopmentPlans for employees to design skilland competency plans with theirmanagers; Organisational CapabilityReview (OCR), a succession planningtool and Mentoring Programs for highpotential employees.

There is a strong focus on developingleadership talent through a range ofprograms: People ManagementDevelopment Program for newmanagers; for high potentials,Emerging Leaders Program; theSenior Leadership Program for oursenior leaders; and Coaching forBusiness Performance.

CCA also supports employees wishing to pursue their studies.

SPC ArdmonaThe final implementation of aPerformance Management system for SPCA, consistent with the CCAAustralia framework, will becompleted in 2007.

A further initiative called “FruitUniversity”will be available to all staffin 2007 to enable them to becomemore aware of the technical aspects ofthe fruit industry. The Fruit Uni will bedeveloped in conjunction with a localtertiary institution and accredited, andit will include all aspects of the supplychain from the orchard to the shelf.

New ZealandCCA operates an annual performancemanagement cycle which involves theestablishment of a performance planand the completion of a mid year andend of year review.

Further initiatives include a Coachingfor Results Program for managers; a framework offering developmentoptions to all employees; Coke Uni,the core curriculum of courses thatlink to our core competencies; and an E-learning program.

There is also a range of leadershiptraining programs for all levels,including a Senior LeadershipProgram developed in partnershipwith the University of Auckland.

Workplace continued

25

IndonesiaTalent development continues to be a key focus with core trainingprograms being developed for keyroles. More than 27,000 training days were delivered during 2006.

A formal Organisation CapabilityReview (OCR) process wasimplemented, targeting all managers.More than 500 managers werereviewed and action plans developed.

Forty-six participants graduated froma National Graduate Trainee Programand at completion of the program theywere deployed in supervisory roles atUnit Operations.

FijiIndividual performance plans areprepared annually and reviewed every six months. A successionplanning process identifies employeeswith high potential and an IndividualDevelopment Plan is developed by the leadership team member inconjunction with the individual.

South KoreaCCA has instituted a Coke University offering a variety of sales based training courses.

The CCA Australia performancemanagement framework of performanceplans and IDPs will be implementedin 2007. The OCR process is already in place.

DiversityCCA subscribes strongly to a policy ofnon-discrimination and we recognisethe social responsibility and businessbenefits associated with a diverseworkforce. In CCA’s 2005-2006 reportto the Australian EmploymentOpportunity for Women in theWorkplace Agency (EOWA), numbersof female employees grew to 30%, upfrom 27% the previous year. Women inpart-time work increased by 22%, andwomen were well represented inFinance (68%).

AustraliaThe following initiatives have beenintroduced to help drive greaterfemale representation at senior levelswithin the organisation.

• Childcare – staged implementationof child care facilities to allow coststo be salary packaged pre-tax;

• On-line access to childcarearrangements;

• Annual leave salary sacrifice –option to purchase an additionalfour weeks of annual leave in a year(70% take up by females);

• Biannual Female Leadership Forumsfor high potential women;

• Focus in Talent Review forum onaction plans for high performing,high potential females;

• Recruitment shortlists to includequalified female candidates.

These initiatives have resulted inimprovements in the percentages ofwomen in management positionsas follows:

• Of the eight internal promotions toCCA grade D roles in Australia inthe last 12 months, five were female;

• Females now represent 33% ofmiddle managers compared to 24% in 2005.

New ZealandCCA has a diverse workforce. Theexecutive leadership team of nine iscomprised of three females, two ofwhom work part-time. A large portion of employees come from a Polynesian/Maori ethnic group.

CCA Workplace Metrics – As at September 2006

Number of Lost Time AverageLost Time Injury Time Lost Rate

Country Injuries Frequency Rate (current year injuries)

Australia 76 13.3 7.4

New Zealand 22 13.9 4.4

South Korea 49 10.9 28.1

Indonesia 22 1.3 24.2*

PNG 6 0.0 0.0

Fiji 1 15.2 2.0

* Indonesia’s ATLR is impacted by 220 day allocation for fatalities. Non fatal LTI’s have an average time lost rate of 12.

26

Principles• We support initiatives and

partnerships that are relevant and ofvalue to local communities.

• We emphasise the development andeducation of young people.

• We listen to the communities in whichwe operate and take into account theirviews and aspirations in the way weconduct our business.

CCA has been creating jobs andinvesting in local communities fordecades, and we believe thatresponsible wealth creation is afundamental social contribution ofbusiness. We are also committed tomaintaining and improving the healthand social fabric of the communities inwhich we operate.

Community involvement is embedded into CCA’s business model and is now part of ourorganisational culture. It takes twoforms, community investment andcommunity engagement, and includes:our philanthropic Foundations, staffvolunteering, emergency relief,donating beverages to communityevents, environmental initiatives,and sharing information with ourneighbours in our local communities.

In 2006 the total value of our community support across the Groupwas approximately $4 million, or around1% of CCA’s Group pre-tax profit.

Community InvestmentWe define community investment as supporting initiatives andpartnerships that are relevant and of value to local communities.

The Coca-Cola FoundationsThe Coke system has establishedFoundations in Australia, Indonesiaand South Korea as the primaryvehicles for driving communitysupport in these countries.

Coca-Cola Australia FoundationCCA and TCCC established the Coca-Cola Australia Foundation(CCAF) in 2001 with the mission to“make a difference to Australia's youth.”

The Foundation supports NationalGrant partners for a maximum of three years and Community Grantpartners with one-off grants out of atotal pool of approximately $1 millionper annum (equally funded by CCAand TCCC).

The CCAF is currently supporting:

• Beyond Empathy – a mentoring andleadership program designed tobreak the welfare cycle for youngpeople through arts projects.

• Barnardos’Adolescent EarlyIntervention Parenting EducationProgram –a new parentingeducation program fordisadvantaged and hard to engagefamilies with at-risk adolescents.

• The Australian Literacy and Numeracy Foundation’s RemoteSchool Project – a unique pilotproject addressing some of the most pressing literacy challenges in remote Australian indigenouscommunities. CCA staff in ourSydney and Darwin offices donated hundreds of books to help build a library as part of the project. The Remote SchoolProject won Best CommunityProject in the 2006 Ethical InvestorSustainability Awards.

• Bluearth Institute – CCAF issupporting a longitudinal medicalresearch project undertaken by Dr Dick Telford, Professor ofMedicine at the ANU and formerHead of Physiology and AppliedNutrition at the Australian Instituteof Sport. The scientific studyinvolves the taking of a number of medical, bio-mechanical andsocio-psychological measures to ascertain the impact of bothphysical activity and sedentary living on children. The study is of more than 800 children in yearone of primary school.

Community

27

SHARE-A-CANTen years of Share-A-Can days at SPCA hasresulted in the donation of $10 million worthof food and has involved 2000 tonnes of fruitand vegetables, 35 tonnes of baked beansand spaghetti, 4000 volunteers, three millionsteel cans and 250 semi-trailers.

• Community Awards – prizes of $5000 for communityorganisations to encourage youngpeople to lead healthy lifestyles.Robyn Sanewski was one of 20recipients of a Community Grant in2006. CCAF funded Robyn to walkthe Kokoda Trail with MichaelMilton, Paralympic skier, and alsogranted $10,000 towards her “Fit forLife”organisation.

• Community Grants – one off grant payments of up to $10,000 to innovative community programs.One recipient in 2006 was the ALIV Kids Program, providingrecreational opportunities andsupport for disadvantaged childrenreleased from immigrationdetention centres and now living in community detention.

Coca-Cola Foundation IndonesiaThe CCFI was established in August2000 to “elevate the level of educationand the quality of human resources inIndonesia“. Education programs arethe cornerstone of every CCFI activity.The programs include:

• The Learning Centre Program,which develops libraries intocommunity learning centres todisseminate information on a rangeof issues, including environmentalprotection and HIV/AIDS. To date,

24 Learning Centres across 14 provinces have been set up.

• Publication of a Learning Centremanual which was endorsed by theNational Library of Indonesia.

• The Environment EducationProgram runs a school-basedcompetition called “Go GreenSchool”where winning schoolsreceive a grant to execute theirenvironmental programs.

• The Micro-Enterprise Development(MED) Program helps people lifttheir families out of poverty andgrow their micro-enterprisesthrough self-help groups andmentoring by business leaders,access to low-interest loans, and thedevelopment of various businesslearning tools.

Coca-Cola Korea Youth FoundationFounded in 2004, the CCKYF seeks to“develop Korean youth by promotingphysical activity and supportingsports, education and relatedactivities”. Programs include:

• The Coca-Cola Sports Award whichrecognises significant contributionsto Korean sport development.

• The Healthrobic program in 300schools and a Healthrobics Contest.

• The “English Camp”, a program to help Korean youth improveproficiency in English throughdiverse cultural and physicalactivities such as in-line skating.The successful pilot has resulted inCCKYF evaluating the roll-out of anational facility and has influencedthe National Youth Training Centreto open its own youth English course.

HIV/Aids Education ProgramsThrough our Foundations, CCA andTCCC are working hard to help ourcommunities in Indonesia and PNGdeal with HIV/AIDS.

PNG: The Coca-Cola Foundation hasestablished a relationship with theClinton Foundation for implementingprojects for the screening andtreatment of HIV/AIDS, some of which include the potential to distribute HIV education andtreatment materials to remotelocations via CCA’s extensive national distribution network.

We are looking at utilising modified shipping containers as HIV/AIDS screening/counsellingcentres in communities.

BEAN AIDSPCA was a primary sponsor of Foodbank WA’s SPC Bean Aid in conjunction with CurtinUniversity in Perth. A month-long drive in Coles to raise donations of cans of baked beansended with a Deni Hines concert at Curtin Uni and the world’s longest line of baked beans cans – 69,157 cans arranged in an indigenous design symbolising the circle of life. The canswere given to Foodbank WA for their school breakfast program.

28

Indonesia: programs focus onprevention, both in the workplace andin the community, using educationalmaterials and working withgovernment agencies and NGOs.

In 2003 the Foundation launched itsfirst initiative on HIV/AIDS education,called Project STAR. In partnership withthe Ministry of Health, the Foundationconducted a series of educationalprograms targeting teenagers in fourmajor cities, Jakarta, Bandung, Surabayaand Yogyakarta, chosen because of thehigh incidence of drug users.

Since then the programs have expanded substantially,providing training through highschools and universities.

Donations of Food and BeveragesAcross the Group CCA donatedapproximately $2 million in food andbeverages to various charity eventsand community initiatives.

One large scale product donationinitiative is the Share-a-Can Day. Thishas been held every year for the past10 years at SPCA headquarters inShepparton in regional Victoria. SPCAand its employees and suppliersdonate their time, products andresources to packing food products fordistribution by Foodbank Australiaand Victoria Relief to needy families.

In 2006 this initiative produced 496tonnes of SPCA food products, worthapproximately $750,000 in retail value.

SPCA was ranked amongstFoodbank’s top 5 donors in 2006.

CCA also donated $273,000 worth of beverages to Foodbank Australia in 2006.

Thirst for GivingThe “Thirst for Giving”program inAustralia enables employees to donateto nominated charities direct fromtheir pre-tax pay. CCA matches everyemployee dollar donated up to a limitof $1,000 per employee per year.

The following charities are ourpartners in the program.

• Mission Australia

• CanTeen

• Royal Flying Doctor Service

• Australian Children’s MusicFoundation

• WWF

• Big Brother Big Sister

• Children’s Hospitals (NSW,Victoria,Queensland, SA, WA)

In 2006, CCA matched approximately$58,000 worth of employee charitydonations, resulting in a total charitydonation of almost $116,000 by CCAand our employees.

New ZealandCCA donated $13,000 to help Tokoroaresident Desiree Ryan raise enoughfunds in 72 hours to build acommunity playground in Tokoroa.This featured on Television Two’s newreality show “No Opportunity Wasted”.

Coca-Cola Christmas in the ParkHeld annually in Auckland andChristchurch, the Coca-ColaChristmas in the Park events are thelargest free concerts in the SouthernHemisphere and raise more than$100,000 each year for youthcounselling and Youthline.

Relief EffortsBoxing Day Tsunami 2005CCA and TCCC jointly initiated anumber of immediate and ongoingrelief projects in devastated Indonesianregions. Our efforts included:

• Donating vehicles ranging fromambulances to motorbikes andmobile clean water supply vehicles,as well as telecommunicationsequipment.

• Building 11 modular schoolcomplexes and two permanentschools in Aceh.

TREE PLANTING WITH LANDCAREFifty staff from across the Coke system converged on Sydney Harbour National Park on 22 November 2006 to participate in CCA’s first staff volunteering day as part of the newLandcare partnership.

Despite the scorching 36 degree heat, the team rolled up their sleeves, donned gardeninggloves and red hats, and got down and dirty with the land. Much weeding, sawing, clearing and planting was done and the results of their hard work were clearly evident at the conclusionof the day.

Guided by experts from the National Parks and Wildlife Authority and Landcare, the team was educated in the particulars of weeds (short leaves good, long leaves bad) and how to plant a tree in four easy steps.

It was a memorable and highly enjoyable day for everyone who took part.

Community continued

29

• Helping supply clean water by locating the best places for clean freshwater wells withhydrogeological surveys.

• Building a micro-power plant in Aceh. Since the commissioning of the water-based, environmentallyfriendly power plant, 200 affectedhouseholds are now utilising power in their homes. The plant is also providing power to a school, local mosque and threecommunity facilities.

Cyclone LarryCCA provided $65,000 worth of packaged water and SPCA donated 30 pallets of food to the victims of Cyclone Larry inInnisfail, Queensland.

Environmental InitiativesLandcare AustraliaCCA and TCCC entered into apartnership in 2006 with LandcareAustralia to protect and regenerate our water sources, with CCA providing an estimated $10,000 inproduct donations and volunteeredemployee time, and TCCC investing$136,500. This will enable localLandcare groups to carry out plantingand regeneration projects in areasconnected to the major waterways andwater sources near our operations.

New ZealandCCA has led the way in event recycling in New Zealand since 2004,developing a set of event recyclingguidelines and trialling bin and bagoptions at events like Coca-ColaChristmas in the Park. In 2006 CCAinstalled specially designed bins thatare made from plastic and fold down to an easily transportable flat sheet thatcan be put into their own recycling bagif damaged.

South Korea – The Water CampaignThe Water Campaign is a majorcomponent of South Korea’scontribution to TCCC’s “Make EveryDrop Count”global initiative.

Coke system employees in SouthKorea formed a “Water Team”whichworked with environmental expertsand NGOs to understand threats toSouth Korea’s water resources anddefine programs to undertake. Amongthese are assessments of water coursesaround South Korea’s three bottlingplants and designing suitable activitiesto ensure sustainable water health.

Indonesia – Community WatershedPartnership ProjectTogether with USAID, the Cokesystem in Indonesia launched theCinta Air (Love Water) Program in aneffort to ensure the provision of cleanwater supply and sanitation services tothe district of Bekasi.

The program facilitates school andcommunity group activities whichprotect water resources, manage cleanwater and sanitation systems, andwork on water treatment initiatives.

Encouraging Healthier Active LifestylesTCCC has a long tradition ofsupporting major global sportingevents like the Olympic Games,the Football World Cup and the Rugby World Cup. In Australia andNew Zealand CCA and TCCC sharesponsorship of major national sportingevents and agreements with majorfootball organisations, including theAustralian Rugby Union, the NationalRugby League and the AustralianFootball league.

CCA has been a long-term sponsor of sport and recreation at national and local levels, and in Australia wesponsor community sporting clubs inrugby league, football, AFL, netball,hockey, Little Athletics, rugby union,cricket, basketball, softball, touchfootball and baseball.

30

TCCC has developed an initiativecalled the Active Lifestyle Program.The programs are funded and sourcedthrough many avenues including theCoca-Cola Australia Foundation and the Coca-Cola Community Awards,which emphasise physical activity.

The Australian Sports Commissionand the University of South Australiahelped TCCC to produce an ActiveFactor booklet to help parentsencourage their children to be moreactive (www.activefactor.com.au).

New Zealand – Oscar Go Kids!In New Zealand, the Coke systemworks with OSCAR (Out of SchoolCare and Recreation Foundation) to enhance the fitness of childrenparticipating in after-school carethrough a program that providesregular exercise activities.

Indonesia – Aku SeGARThe Coke system has developed Aku SeGAR which focuses on nutrition and regularexercise, and supports the IndonesianGovernment’s program HealthyIndonesia 2010. A Nutrition Guideand Aerobic Exercise Manual has beendeveloped for the program anddistributed to schools in greater Jakarta.

SPC Ardmona – Collect-a-TubSPCA and Coles supermarketsdeveloped the “Collect-a-Tub”program aimed at encouragingVictorian primary school children into more active lifestyles. Points from the purchase of Goulburn ValleyFruit Snacks from Coles or BI-LOstores were redeemed for sportingequipment for schools.

Mount FranklinCCA’s leading water brand, MountFranklin, initiated a three-year, $300,000commitment to support the NationalBreast Cancer Foundation’s (NBCF)research into breast cancer in Australia.Under a Platinum Corporate Partnershipwith NBCF, CCA pledged to donate$100,000 annually for three years.

The campaign, which included Mount Franklin bottles turning pink and topped with pink lids,generated a significant amount ofawareness for the NBCF and alsoraised an additional $70,000 throughrelated promotional activities withCoffee Club, Priceline, Big W, and the Coles Myer Group, as well as an Ebay celebrity auction and staffPink Ribbon events.

The Australian Council of Agricultural SocietiesScholarship ProgramThis program rewards youngAustralians working or studying in the field of agriculture who arecontributing to their regionalcommunities. Thirty-threescholarships are offered across thecountry totalling an investment of$66,000 by CCA in Australia’s youth.

Other Community Investmentnot included in Table on page 31

SPC Ardmona Home-GrownScholarship ProgramThis scholarship provides a grant of$5,000 per annum (maximum $20,000over four years) to contribute to thecosts for a Goulburn Valley resident to gain a qualification in Food Scienceand Technology or MechanicalEngineering at any Australian university.

Community continued

MOUNT FRANKLIN GOES IN TO BAT FOR BREAST CANCER RESEARCHAustralian cricketer Matthew Hayden wasinspired to help the National Breast CancerFoundation after seeing a bottle of MountFranklin with the pink lid. He rang the NBCF’sSue Murray and asked if he too could dosomething for breast cancer research.

He decided to put a pink handle on hiscricket bat. Matthew’s wonderful gesture,seen by cricket crowds right across the worldover summer, was taken up by many of hisfellow Australian cricket team members.

31

SPC Ardmona Water FundIn November 2006, CCA announcedthe SPCA Water Fund, a $1.75 millionfund to aid drought-stricken farmersin the Goulburn Valley. The funding for2007 covers interest free advances topurchase water, subsidies on fruitdelivered for processing and access to 1,000 megalitres of water forirrigation. The initiative is aimed atassisting SPCA’s grower suppliers withthe additional costs of buying water asthe Goulburn Valley faced its worstirrigation year on record.

Neverfail Springwater and Neighbourhood WatchNeverfail Springwater in Perth has formed a unique partnership withWA Police and Neighbourhood Watch.In September 2006, the WA PoliceCommissioner, Karl O’Callaghanlaunched the program which involvesNeverfail’s drivers being the “eyes andears”on the streets for NeighbourhoodWatch. The program will extend toregional communities in WA in 2007.

Community EngagementWe define community engagement asbuilding relationships with keystakeholders in the communities inwhich we operate and engaging indialogue on a range of issues. We haveworked hard to understand the needsand concerns of several communities in2006, including Peats Ridge in NSW(see Engaging With Our Communitiesp.10), Northmead in western Sydneyand Auckland in New Zealand.

In 2006, we began a new NationalCommunity Engagement Strategywhich aims to build good relationshipswith every community in which weoperate. We have set up a phonenumber, 1800 LOCAL1, and wecommunicate with our neighbours to seek their feedback on our local activities.

Plant ToursCCA conducts plant tours for schooland community groups in NSW,South Australia, Western Australia,Indonesia, South Korea and Fiji.Annually, we invest approximately$40,000 in educational aids andproduct as well as 4,000 hours inadministering and hosting the tours.

New Zealand – Coca-Cola Careers ExpoThe annual Coca-Cola Careers Expotakes place in Dunedin, Wellington,Christchurch and Auckland andprovides career and education advice to tens of thousands of youngKiwis. Approximately 135 hours ofCCA time is donated to bring theseexpos to fruition.

The Careers Expo was a finalist in twocategories of the 2006 New ZealandSponsorship Awards – Best long-termsponsorship and Best special project.

CCA Community Contribution 2006Coca-Cola Product and Thirst Relief Environmental Cause

Country Foundation Merchandise for Giving Efforts Efforts Related Marketing Other Total

Australia 500.0 556.5 58.0 85.0 50.0 100.0 318.0 1,667.5SPCA – 750.0 – 30.0 – – 65.0 845.0New Zealand* – 300.0 – 20.0 – 13.0 333.0South Korea 270.0 98.2 – 18.2 20.2 – 8.4 415.0Indonesia 633.3 26.1 – – – – 75.7 735.1PNG – 21. – 1.7 18.1 40.8Fiji – 4.0 – 33.8 – – 3.8 41.6

TOTAL 1,403.3 1,755.8 58.0 188.7 88.3 100.0 483.9 4,078

Note: All figures are in 1000s of Australian dollars.

* New Zealand data is an estimate only

32

AustraliaDow Jones Sustainability IndexCCA was listed as the Cluster Leaderof the Food, Beverage and Tobaccosector of the 2007 Dow JonesAustralian SAM Sustainability Index(AuSSI).

CCA scored well in the followingcategories:

1. Risk and Crisis Management

2. Healthy Products

3. Environmental Performance

4. Packaging

For more details of the SAMBenchmarking Report seewww.aussi.net.au

The Wall Street Journal Asia 200 SurveyCCA was placed in the Top 10companies in Australia in The WallStreet Journal’s A200 survey, aperformance review of Asia’s leadingcompanies. A survey of more than3000 executives and professionalsrated CCA as one of the most admiredpublic companies in Asia based on fivekey leadership criteria:

• Financial soundness

• Company reputation

• Quality of products and services

• Innovation in responding tocustomer needs

• Management long-term vision

NSW: Sydney Water Every Drop Counts AwardsJoint Winner Innovation Category 2006

Queensland EnvironmentalProtection AgencySustainable Industry Awards: Finalist in Industrial Eco-EfficiencyCategory 2006

Victoria’s Savewater! Awards 2006

Finalist CCA (Moorabbin)

Western Australia: Departmentof Water WA Water Awards 2006CCA Highly commended forWaterwise Business

Finalist in 3 categories:

• Waterwise Business

• Water Conservation/Efficiency

• Water Recycling

National Packaging Evolution AwardsCCA Winner – CommunityPartnership Action category

Highly Commended for the Beverage Packaging Action category

South Korea Winner of Green Environment Prizefrom the Minister for the Environmentin June 2006

External Recognition 2006

Awards

33

Coca-Cola Amatil (CCA): the company, listed on the AustralianStock Exchange produces, sells and distributes Coca-Cola trademarkbrand products in six countries –Australia, New Zealand, Indonesia,South Korea, Fiji and Papua New Guinea.

The Coca-Cola Company (TCCC):the world’s largest beverage company. TCCC has a 32%shareholding in CCA.

Bottlers: business entities thatmanufacture, distribute and sellbeverages of The Coca-Cola Companyunder a franchise agreement.

Carbonated soft drinks (CSDs):sparkling non-alcoholic beveragessuch as Coca-Cola, Fanta and Sprite.

Coca-Cola system or Coke system:TCCC and its bottling partners. In thisreport the Coke system refers to jointinitiatives of CCA together with TCCC.

Cold Drink Equipment: coolers, vendingmachines and fountains in themarketplace that cool beverages forimmediate consumption.

Concentrate: base of a beverage, towhich water and other ingredients areadded to produce beverages. These aremainly supplied to bottlers by TCCC.

Container Deposit Levy: regulationswhich enable consumers to receive arefund when they return an emptybottle (currently five cents per bottle,only in South Australia.)

Functional beverages: a drink, such asfruit juice, which has other benefitsbeyond hydration and the supply ofcarbohydrates.

Group: describes all CCA operationsacross all geographic locations.

Horeca: Hotels, Restaurants and Cafes.

Lightweighting: reducing the amountof raw materials used to producelighter packaging.

LTIFR: Lost Time Injury Frequency Rates.

Megalitre: one million litres,equivalent to one olympic swimming pool.

Non-CSDs: non-carbonated, non-alcoholic beverages which includewaters and flavoured waters, juices,sports and energy drinks and teas.

PET: Polyethylene Terephthalate.The material from which CCA’s plastic soft drink bottles are made.

Plant: a bottling facility, wherebeverages are produced.

The Coca-Cola Quality System (TCCQS):the global quality management system of TCCC, aligned to the ISO 9001 (Quality), ISO 14001(Environment) and OHSAS 18001(Health and Safety) standardsendorsed by key bottlers.

Top to Top: Meeting of the seniorexecutives from The Coca-ColaCompany and key anchor bottlers.

Unit case: a unit case is the equivalent of 24 8oz (237ml) serves or 5.678 litres.

Water Use Ratio: the KPI used by CCA to measure water use in thebottling plant, expressed in litres of water used per litre of producedbeverage (Litres/Finished BeverageLitres – L/FBL).

Glossary

This report is printed on paper which is Elemental Chlorine Free and uses pulp derived from sustainable forests.

Citizenship@CCACoca-Cola Amatil LimitedABN 26 004 139 397

Inquiries: Sally Loane, Director of Media & Public Affairs, Coca-Cola Amatilph: 02 9259 6797email: sally.loane@anz.ccamatil.com

For more information on Coca-Cola Amatil please visit our website at www.ccamatil.com