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1 1 October 2005 Profitably Growing Per Capita Consumption in Australia Warwick White Managing Director 13 October 2005 Pat Malloy Director, Sales & Customer Service Jeff Maguire Operations Director 2 October 2005 Capitalising on the Health & Well-being Lifestyle Trend Warwick White Cementing stronger customer relationships with tailored solutions Pat Malloy Leveraging our capital and scale for value and service Jeff Maguire Current Trading Environment Warwick White Overall Agenda

Profitably Growing Per Capita Consumption in Australia€¦ · RTD Coffee/Tea Sports Juice Water Market Size based on Litres consumed. 4 October 2005 7 We still have not maxed out

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Page 1: Profitably Growing Per Capita Consumption in Australia€¦ · RTD Coffee/Tea Sports Juice Water Market Size based on Litres consumed. 4 October 2005 7 We still have not maxed out

1

1October 2005

Profitably Growing Per Capita Consumption in Australia

Warwick WhiteManaging Director

13 October 2005

Pat MalloyDirector, Sales & Customer Service

Jeff MaguireOperations Director

2October 2005

Capitalising on the Health & Well-being Lifestyle Trend

Warwick White

Cementing stronger customer relationships with tailored

solutions Pat Malloy

Leveraging our capital and scale for value and service

Jeff Maguire

Current Trading Environment

Warwick White

Overall Agenda

Page 2: Profitably Growing Per Capita Consumption in Australia€¦ · RTD Coffee/Tea Sports Juice Water Market Size based on Litres consumed. 4 October 2005 7 We still have not maxed out

2

3October 2005

The Australian business continues to grow strongly

$M

0

50

100

150

200

250

300

350

400

450

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1993 to 2000CAGR +7.0%

2001 to 2004CAGR +15.2%

EBIT Growth of CCA Australia

4October 2005

Our Success Continues to be Driven by Execution of our Pillars of Growth

1. Product and package innovation

2. Non-carbonated beverage expansion

3. Growing product availability through cold drink

placements and outlet expansion

4. Customer service improvement

5. Revenue management and cost discipline

Page 3: Profitably Growing Per Capita Consumption in Australia€¦ · RTD Coffee/Tea Sports Juice Water Market Size based on Litres consumed. 4 October 2005 7 We still have not maxed out

3

5October 2005

Our Success Continues to be Driven by Execution of our Pillars of Growth

1. Product and package innovation

2. Non-carbonated beverage expansion

3. Growing product availability through cold drink

placements and outlet expansion

4. Customer service improvement

5. Revenue management and cost discipline

6October 2005

The Australian Beverage Market: There Is Still Significant Potential for Growth

Total market size: $9.0bn

Source: Industry Estimates/ACN Food & Convenience T1/T2

CCA share in each category

CSD 60%

Water 35%

Juice 6%

Sports 46%

Energy 8%

RTD tea 4%0.5%

1.6%

1.7%

0.4%

19.0%

19.0%

58%

CSD

EnergyOther

RTD Coffee/Tea

SportsJuice

Water

Market Size based on Litres consumed

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4

7October 2005

We still have not maxed out the per capita consumption growth

Source: TCCC Infact – Market Estimates

New

Zea

land UK

Bel

gium

Aus

tral

ia

Can

ada

Ger

man

y

Spa

in

US

A

Mex

ico

10211142 1178

12661377 1415

15111659

1912

2278

0

500

1000

1500

2000

2500

In 2004: Total Industry Non-alcoholic ready to drink beverage per capita (8oz Serves)

Fran

ce

Each week, every Australian drinks one more of our beverages than they were in 2000CCA volume growth of 5.2% pa since 2000.Consumption of Commercial Beverages In Australia has increased from 1,218 per capita in 2000 to 1,266 per capita in 2004

8October 2005

The Coca-Cola System: Bringing You A World Of Refreshment

Simple PleasureSugar CSDS

Better for You PleasureSugar Free CSDS

Health & Lifestyle NCBs & NPD

We now have a Strong Portfolio of Brands to Tap into all the Consumer Needs States

Page 5: Profitably Growing Per Capita Consumption in Australia€¦ · RTD Coffee/Tea Sports Juice Water Market Size based on Litres consumed. 4 October 2005 7 We still have not maxed out

5

9October 2005

Global Comparisons Highlight That There Is Still Significant CSD Growth Potential…

The Carbonated Soft Drinks Market ($4.9bn, 2,400m litres)

Australia consumption patterns and consumer habits follow the US

Australian CSD per capita at 63% that of the USA

Source: TCCC Infact – Market Estimates

339379 400 428 463 493 497

624

777

0

100

200

300

400

500

600

700

800

900

Germany NewZealand

UK Belguim Canada Australia NorthernIreland

Mexico UnitedStates

In 2004: Total Industry Carbonated Soft Drink Consumption Per Capita (8oz Serve)

CA

RB

ON

ATE

D S

OFT

DR

INK

S

10October 2005

In Australia, Sugar Free Products Have Grown From 23% to 27% of The Market in 7 Years

ACNielsen Food & Convenience (T1/T2) - Value Sales (000s)

1998 1999 2000 2001 2002 2003 2004

Sugar Free CSDsSugar CSDs

Source: ACNielsen Food & Conv (T1/T2)

27%

23%

5.1% 5.6%8.1% 3.9% 1.9%

6.9% 0.8%

Value Growth

CA

RB

ON

ATE

D S

OFT

DR

INK

S

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6

11October 2005

Sprite is Leveraging Its Urban Youth Connection and Zero Young Adult Opportunity

Sprite highly responsive to support – and Sprite Zero communication haloing back onto Sprite brand

Sprite Sales +8.4% YTD

The Opportunity

Source: TCCC Infact – Market Estimates

CA

RB

ON

ATE

D S

OFT

DR

INK

S

12October 2005

Sprite Zero Ad

CA

RB

ON

ATE

D S

OFT

DR

INK

S

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7

13October 2005

Against This Background, Diet Coke Has Grown in Volume by 25% and contributed $498M to growth since 2000

Launched in Australia in 1983Core user base of loyal female drinkers (70% of volume)70% of volume from highly loyal daily drinkers

Diet Coke – Australia’s favourite diet brand amongst Australian womenCampaigns over time have developed a sexy, confident, female characterFlavour variants over the last 3 years have brought in new users to thefranchise

2006 Driving Equity: “Its Good to be Me”

CA

RB

ON

ATE

D S

OFT

DR

INK

S

14May 2005

Diet Coke Ads – The Business Presentation

CA

RB

ON

ATE

D S

OFT

DR

INK

S

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8

15October 2005

INCIDENCE (PAST 24HRS) CSD X AGE

33%

16%

7%

55%

26%

32%

43%

9%13%

8%6%9%

0%

10%

20%

30%

40%

50%

60%

Total 12-19 Years 20-29 Years 30-39 Years 40-49 Years 50-65 Years

SUGARDIET

However, As Older Consumers Reduce Their Frequency Of Consumption of Sugar CSDs, Not All Of Them Move into Diet CSDs….

Source: COG 12MMT May ’05 – All Beverages

CA

RB

ON

ATE

D S

OFT

DR

INK

S

16October 2005

To fill this Gap, We are Introducing…..

CA

RB

ON

ATE

D S

OFT

DR

INK

S

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9

17May 2005

And now lets taste it..

CA

RB

ON

ATE

D S

OFT

DR

INK

S

18October 2005

Household penetration remains low relative to the long term potential of the category

80% of consumers claimed they consumed tap water in the last 24 hrsBottled water has only 17% household penetration

047

96152 152

240

402

522576 580 585

760

100

200

300

400

500

600

700

800

NZ Netherlands UK Australia Canada USA Germany Belgium France Spain Italy

International Markets Highlight Overall Potential Of The Water Market (Currently $1.2bn, 740m litres)

Source: TCCC Infact – Market Estimates

In 2004: Total Industry Packaged Water Consumption Per Capita (8oz Serve)

WA

TER

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10

19October 2005

Our Increased Investment in Water Driving Results with 12% Volume and 21% Value Growth pa Over the Last 3 Years

12.2%

10.2% 10.2%

14.6%

11.2%

20.8% 21.1%

31.6%

14.5%

16.9%

5.7%

10.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

1999 2000 2001 2002 2003 2004

Water - Volume & Value Growth (ACN Food & Conv)

Volume GrthValue Grth

Source: TCCC Infact – Market Estimates

WA

TER

20October 2005

No 1 share of voice in Water

We Have The Most Powerful Portfolio of Water Brands in The Australian Market Place

At Home Out & About

Younger

Older

WA

TER

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11

21October 2005

Key Brand Initiatives to Increase Total Water consumption ensure We have an Offering for every Water Occasion

Mount FranklinSparkling & still in glassPremium glass multi packDrive in home availability of 1.5 litre multi serve & 6 x 600mL multi serve

PumpIntroduce 4 x 750mL multi pack

Pump 4 x 750mLPump 4 x 750mL

WA

TER

22May 2005

Mt Franklin Commercial

WA

TER

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12

23October 2005

Key Brand Initiatives to Increase Total Water consumption ensureWe have an Offering for every Water Occasion

Peat's Ridge• Drive Value through pack innovation

Neverfail• Leverage the brand with the 5 litre pack

WA

TER

24October 2005

Relaunch of Deep Spring

Re-ignite as the adult carbonated good for you offering

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13

25May 2005

Deep Spring Commercial

26October 2005

Building on Fruitopia’s Early Success, We Will Continue To Drive Value Ahead of Volume Growth In The Juice Market

• 2nd largest NARTD category behind CSD (21% share of NARTD market)

• Juice growth driven by consumers desire for healthy beverage solutions

-1.5%-1.0%-0.5%0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%

2002 2003 2004 2005 Est

Juice & Juice Drinks - Volume & Value Growth (ACN Food& Conv)

Volume GrthValue Grth

Source: ACN Food & Con (T1/T2);

Market Size:$1.4bn

766m litres

JUIC

E

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14

27October 2005

Fruitopia Classic is now the Number 2 Brand in Foodstores ahead of Golden Circle

Source: ACNielsen Foodstore

Manufacturer % Share of Juice

0

2

4

6

8

10

12

14

16

% $

sha

re o

f Jui

ce

TCCC Golden Circle

Launch of Fruitopia Classic

Jun 05 Sep 05Aug 05Jul 05

JUIC

E

28October 2005

Further Fruitopia product & pack launches will continue the growth momentum

Alive’s “Juice bar” in a bottle

Fruitopia Carafe

JUIC

E

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15

29May 2005

And now lets taste Alive..

CA

RB

ON

ATE

D S

OFT

DR

INK

S

30October 2005

Powerade is “Powering Ahead” with +7.8pts Volume Share Gain in Quarter to Sept 2005 in Foodstores

SPO

RTS

Powerade Volume % Share gain versus year ago

-5.6-4.1 -4.2

-1.9-2.9

1.1

9.08.0 7.7

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

4W/E4W/E23/01/2005

4W/E20/02/2005

4W/E20/03/2005 17/04/2005

4W/E15/05/2005

4W/E12/06/2005

4W/E10/07/2005

4W/E07/08/2005

4W/E04/09/2005

Source: ACN Foodstore

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16

31October 2005

We see a Big Opportunity to make Powerade a Mainstream Beverage

1115 15 16

19

49

0

10

20

30

40

50

Spain Canada Netherlands Australia New Zealand United States

(Estimated size: $0.3bn, 75m litres)

Source: TCCC Infact – Market Estimates

In 2004: Total Industry Sports Consumption Per Capita (8oz Serve)

SPO

RTS

32October 2005

Over the last 3 Years the Sports Market has grown by 14% in Volume and 20% Value CAGR

6.0%9.1%

6.2%

13.4%

7.1%

16.2%

31.6% 32.6%

0%

5%

10%

15%

20%

25%

30%

35%

2001 2002 2003 2004

Sports - Volume & Value Growth (ACN Food& Conv)

Volume GrthValue Grth

Source: TCCC Infact – Market Estimates

SPO

RTS

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17

33October 2005

Powerade : “It ain’t over ‘til you say it’s over”

Watch this Space

SPO

RTS

New 1.0 Litre Powerade Grip bottle

34October 2005

Significant Opportunity to Expand our RTD Tea Offering with Market forecast to grow at more than 50% Volume in 2005

1 1 2 2 9 14 1533 35

49

162

0

20

40

60

80

100

120

140

160

180

UK Mexico Brazil Australia Spain Indonesia France Canada USA Germany Japan

(Estimated size: $0.05bn, 20m litres)

Source: TCCC Infact – Market Estimates

In 2004: Total Industry RTD Tea Consumption Per Capita (8oz Serve)

RTD

TEA

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18

35October 2005

We Will Drive Profitable Growth Through Communication & Innovation

Launch Q3 05 – New Packaging

Jan 06 Launch New Label & Packaging Q3

More to Come

RTD

TEA

36October 2005

And the Energy Phenomenon Continues with Market Growth at Double digit levels each year since 2002

Source: TCCC Infact – Market Estimates

• 2nd largest growth category behind RTD Tea• CAGR from 2001 to 2004 was 12% Volume and 17% Value• Coke system is committed to the Energy Category and we have

grown 40% MAT 2005In 2004: Total Industry RTD Energy Consumption Per Capita (8oz Serve)

New ZealandUSA AustraliaSpainGermany0

10

20

30

40

50

UKJapanNetherlandsBelgium

ENER

GY

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19

37October 2005

We are Upping our Energy Credentials

Recharge Idea: “Obey Your Thirst For Energy”

Watch this Space

Q4 2006

ENER

GY

38October 2005

But to capitalise on our marketing investments this business is all about execution & our superior customer relationships

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20

39October 2005

Our Success Continues to be Driven by Execution of our Pillars of Growth

1. Product and package innovation

2. Non-carbonated beverage expansion

3. Growing product availability through cold drink

placements and outlet expansion

4. Customer service improvement

5. Revenue management and cost discipline

40October 2005

Dimensions of the Australian Business

CCA satisfies Australia’s thirst, taste and refreshment by delivering the equivalent of 20 million 8oz serves per day;

75,000 Convenience Customers5,000 Grocery Stores (supermarkets)55,000 Venders

1,000 Representatives in the field every day helping our Customers

200 Call Centre Representatives focussed on Customer Service

$2.0 billion of revenue delivers approximately $3.5 billion in retail sales

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21

41October 2005

CCA responding to Australia’s changing Retail Market

2005200519951995RETAILERSRETAILERS

Multi cultural – Vietnamese/ Thai/Greek/Indian, etc., sophisticated Al Fresco

Consolidated with increased shopper frequency

Essentially Chinese/ Foodservice takeaway

Fragmented

Restaurants/Cafes

Pharmacies

McDonalds/KFC/Subway/ Domino/Red Rooster/ Nandos/Michel’s/Muffin Break

McDonalds/KFC/CinemaNational Convenience

Grocery/Discount/Variety/ Petroleum/Liquor

Supermarkets/Discount/ Variety

Major Chains

42October 2005

50% of shoppers visit a supermarket several times a week (24x7)

58% of households have 2 or less people (more households but smaller)

56% of females in workforceConvenience/range is critical28% of main shoppers are

maleTime poor (longer working

hours)

Generally shop twice a week Monday to Friday (daytime)

53% of households have 2 or less people

48% of females in workforce

Less than 20% of main shoppers were male

SHOPPERSSHOPPERS

2005200519951995

CCA responding to Australia’s changing Retail Market

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22

43October 2005

So how has CCA changed (2001-2005)?

Invested in highly skilled customer teams (focussed on conceptual selling rather than order taking)Tailored customer solutions by customer & channel

Introduced channel based selling teams (Grocery, C-Stores/Petroleum, Foodservice, HORECA, Route, Vending)Invested in National Call Centre

Innovated package/product solutions to meet changing consumer demand (additional 350 products)Invested in the exploitation of Scan Data to maximise revenue & share

Continued to invest in Customer Service Improvement to differentiate CCA from others

15.2% CAGR EBIT growth from 2001 15.2% CAGR EBIT growth from 2001 –– 20042004

44October 2005

CCA’s Two Major Objectives

Continue to grow per capita consumption profitability

Continue to grow our customers’ profits

How does CCA do it?CCA Strategies are based on five core pillars:-

COLD DRINK(immediate

consumption)

OUTLET EXPANSION

DEVELOPMENT(by channel/ by customer)

NEW PRODUCTS

(a beverage for every

consumption occasion)

CUSTOMER SERVICE

REVENUE MANAGEMENT

(right pack, right product,

right price, right channel)

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23

45October 2005

Equipment penetration is a key driver to Immediate Consumption Growth

CCA Australia

25.0

35.0

45.0

55.0

65.0

75.0

2003 2004 2005 2004 Mexico

Co

ole

rs p

er 1

0,0

00

po

pu

lati

on

332 8oz. serves

per capita

517 8oz. serves

per capita

Cld DrinkCold Drink

CCA only 50% through cooler

rollout

46October 2005

Space & Equipment Type have changed

37% increase in space for products in the past 3 years

342,000

2003 2004 2005

467,000411,000

CCA Shelves in the Australian Market

Cold Drink

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24

47October 2005

Tailored Cold Drink Solutions, Woolworths

Cold Development: Open Front Coolers: Express Lane & Checkout SolutionsOpportunity: To promote impulse sales at front of storeNumber of Placements: 1,760 units nationally

Cooler Investment

Before

After

Before

After

+24% +12%

Cold Drink

48October 2005

Tailored Cold Drink Solutions, Coles

Cold Development: Open Front Cooler: Express Lane & Checkout SolutionsOpportunity: To remove barriers to purchase at the checkoutNumber of Placements: 1,100 units nationally

Cooler Investment

After

Before Before

After

Cold Drink

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25

49October 2005

1

87

6

45

32

9

We have increased the points of engagement in corporate grocery* from 7.6 to 8.9

Availability of beverages throughout a Supermarket provide greater likelihood of a beverage sale in every shopper basket

*Corporate grocery is defined as Coles & Woolworths grocery stores

Outlet Expansion Development

50October 2005

Ambient Water Racks compliment our cooler investment

16,000 additional racks to be placed in 2006 to drive volume & profit growth

Dimmeys (Vic) –Ambient Water and Open Air Cooler driving +15% volume, +30% Net Contribution

Village Cinemas (Karingal & Glen Waverley, Vic) –Ambient Water and Open Air Cooler driving +20% volume, +37% Net Contribution

Outlet Expansion Development

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26

51October 2005

CCA continues to grow its Outlet Base

CCA Australia - C&L Customer Base

50,000

55,000

60,000

65,000

70,000

75,000

80,000

2002 2003 2004 2005 2006

Actual Forecast

Outlet Expansion Development

52October 2005

Success in Emerging Markets requires tailored solutions to suit the Customer & Consumer

Pharmacy Stockists

1,475 outlets

+31% growth

PHARMACIESPHARMACIES

Outlet Expansion Development

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27

53October 2005

HORECA has delivered 50% growth in contribution over 3 years“Picture of Success” - HORECA

Specific Sales Training

FROM TO

Outlet Expansion Development

Primary Opportunities• Staff training & incentives• Visible equipment• Table activation• Ambient display

Secondary Opportunities• Waitstaff branding• Umbrellas & breeze barriers

54October 2005

New Products 2004 – 2005:A beverage for every consumption occasion

2L

Non Carbonated

Carbonated

WaterWater TeaTea SportsSportsJuiceJuice EnergyEnergy

New Products

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55October 2005

New Products 2005:A beverage for every consumption occasion

New Products

Additional ambient PET pack to drive promotionalfrequency & store traffic;

PET options (1.25L, 1.5L & 2L) to suit light, medium& heavy users;

Fast tracked opportunity into Qtr 4 2005;

Entice consumers into the category. Build shopping basket incidence;

Tailored solution for:- Light Consumers- Top Up & Impulse Shoppers- Smaller Households- Introducing New Buyers;

Clear differentiation of can packs & pricing.

56October 2005

The next big opportunity is to exploit scan data & work with our Key Customers to:

Grow the number of bottles purchased in each basket (AWOP)

Increase basket penetration (bottles in more baskets)

Optimise profit

Optimise share

Revenue Management

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29

57October 2005

TCCC AVERAGE RETAIL UNITS PER PURCHASE

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

JANUARY 2004 JANUARY 2005 AUGUST 2005

AVE

RA

GE

RET

AIL

UN

ITS

PER

PU

RC

HA

S

18 Pack +8%

2 Litre +8%

CCA has grown the number of retail units purchased

1.64 bottles per purchase

1.12 packs per purchase

1.78 bottles per purchase

1.21 packs per purchase

Source: Aztec Temple Data

AVE

RA

GE

RET

AIL

UN

ITS

PER

PU

RC

HA

SERevenue

Management

58October 2005

AUSTRALIA GROCERY SCAN MARKETTCCC

43.3 45.450.8

$1.28 $1.27 $1.32

0

10

20

30

40

50

60

70

80

90

100

JANUARY 2004 JANUARY 2005 AUGUST 2005

VOLU

ME

SHA

RE

(%) O

F TO

TAL

SOFT

DR

INK

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

PRIC

E PE

R L

ITR

E ($

TTL TCCC SFT DRK % SHARE TTL TCCC SFT DRKS $ / LITRE

TCCC has increased share & revenue per litre for core CSD brands

Source: ACNielsen ScanTrack for the 4 weeks of the month

Revenue Management

PRIC

E PE

R L

ITR

E ($

)

VOLU

ME

SHAR

E (%

) OF

TOTA

L SO

FT D

RIN

KS

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59October 2005

CCA has grown C&L revenue over the last 3 years

+8%+8%+4%Net Contribution

+5%+5%+3%Net Sales Revenue

200520052004200420032003

Revenue Management

60October 2005

Step Change in Customer Service, shelf ready packaging

Working with Retailers to develop shelf friendly packaging, that will:

Reduce handlingIncrease speed of shelf replenishmentFacilitate good product presentation on shelfNot increase cost of goodsConform to OH&S requirementsBe an industry/market solution

Customer Service

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61October 2005

National Call Centre continues to lead in Customer Service

20032003 20052005Calls Received 960k 1.3m

Average speed of response 15 sec 8 sec

Hours speaking with Customers providing In-Bound Customer Service 31k 55k

1 million calls p.a. answered within 5 seconds

2.6 million p.a. proactive sales calls

Customer Service

62October 2005

Making it easier for our Customers to dobusiness with CCA

Customer Service

In the last 12 months, CCA has introduced 4 additional payment options for our Customers:

Electronic Payments

Easy Pay October 2004

BPAY July 2005

Pay-By-Phone 10 October 2005

Pay-By-Web 10 October 2005

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63October 2005

Our Success Continues to be Driven by Execution of our Pillars of Growth

1. Product and package innovation

2. Non-carbonated beverage expansion

3. Growing product availability through cold drink

placements and outlet expansion

4. Customer service improvement

5. Revenue management and cost discipline

64October 2005

Comprehensive distribution reaching 90,000 customers15 production plants will make 7.6 billion serves of beverage this year

Neverfail

Juice

Carbonated Beverages

Peats Ridge Springs

• 36 Production Lines

• 528 million serves of Juice

• 215 million serves of Powerade

• 792 million serves of water

• 6.1 billion serves of Carbonated beverage

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65October 2005

• 8 Primary warehouses

• 70 satellite warehouses and cross docks

• 450 trucks

• 90,000 customers

• 7.6 billion 8oz serves delivered this year

Comprehensive distribution reaching 80,000 customers

66October 2005

Customer Service – 316 million unit cases ordered 99.8% delivered in full.

2001289 million unit cases ordered

97.3% delivered in full

2005316 million unit cases ordered

99.8% delivered in full

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67October 2005

Labour productivity has increased through automation and production line reliability

2001276 million unit cases manufactured

245 SKUs

Manufacturing Productivity of 124 cases per man hour

2005311 million unit cases manufactured

294 SKUs (↑20%)

Manufacturing Productivity of 133 cases per man hour (↑ 8%)

68October 2005

Investment in production equipment has created capacity and matched growth product strategies

• An extra 4 million litres per year ensures NSW meets anticipated growth for 10 years.

• Reduced costs by $800,000 per year

$2.6 millionSmall PET Line in NSW

Carbonated Soft Drinks

• New products – still water in glass and improved tasting juice products

• An extra 18 million litres water and 27 million litres of Powerade per year.

• Meets anticipated growth for 2-3 years

$5 millionPacific Beverage Line Upgrade

Powerade & Juice

• New packaging formats• An extra 134 million litres per year,

meets anticipated growth for next 10 years

• Reduced cost

$18 millionQLD Water Line

Water

RESULTSINVESTMENTPRODUCT TYPEHIGHLIGHTS OF 2005 MANUFACTURING INVESTMENT

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69October 2005

Planned Investment 2006-2009

CSDs24%

Hotfill22%

Juice25%

Water29%

We will manage next 3 years investment with our current capital structure

Product specific manufacturing investment e.g. excludes warehousing, IT etc.

Carbonated Beverages

Non-carbonated Beverages

Investment envisages 1 line per year for 3 years @ $15 – 20M per line

70October 2005

Mentone performance under-pins confidence in Sydney & Auckland

13.839.7Pallet Movements per 1000 cases sold

10%10%Cost per Case % reduction(inc depreciation)

0.82.9Error order picking (errors per 1000 cases picked)

98.6%90%Accuracy of inventory records

18396Productivity (cases/man hr)

MentoneAverage from CCA’s traditional warehousesMeasure

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71October 2005

NorthmeadPlant

Smithfield DC

SmithfieldPlant

Newcastle Break-Bulk

Canberra Break-Bulk

Route Customers

Grocery Customer DCs

OutsideStorage

102 Briens Rd

Route Customers

Route Customers

InterstateOutbound

InterstateOutbound

InterstateInbound

InterstateInbound

Current NSW Logistics Network

NSW opportunity to reduce complexity in distribution

2005

72October 2005

NSW logistics will be simplified by 2008

NorthmeadPlant

Eastern Creek DC

SmithfieldPlant

Route Customers

Grocery Customer DCs

InterstateOutbound

InterstateInbound

Future NSW Logistics Network 2008

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73October 2005

Northmead bulk warehouse will provide 50,000 pallets of storage capacity and reduced operating costs

Production

Expansion

Warehouse

Office Space

Warehousing

$180million investment gives: 50,000 pallets of storage, a picking facility with capacity till 2015, space for 4 more production lines

74October 2005

Eastern Creek mixed pallet warehouse will increase customer service & reduce cost

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75October 2005

Current Operating Environment

Increased market share in Q3 despite large price

gap to competitor

Higher COGS environment

Petrol Prices

Q4 weather

Retailer pricing

76October 2005

Key Drivers for last Quarter Performance

Coke 1.5L and 6 pack cans in Grocery

Sprite momentum with Sprite Zero advertising

Mt Franklin / Pump racks and multi packs

Deep Spring relaunch

Fruitopia Alive launch

Cold drink coolers / new outlets

October price increase

Strong NPD pipeline led by Coca-Cola Zero