PO Box 1895 North Sydney NSW 2060, Australia ccamatil.com 15 May 2019 Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam COCA-COLA AMATIL LIMITED 2019 AGM – CHAIRMAN AND GROUP MANAGING DIRECTOR SPEECHES & PRESENTATION Please find attached the following documents to be delivered at Coca-Cola Amatil Limited’s 2019 A nnual General Meeting (AGM) in Sydney today: 1. Chairman’s speech; 2. Group Managing Director’s speech; and 3. AGM Presentation Slides. A live webcast of the 2019 AGM will be available on Amatil website ’s at: www.ccamatil.com/agm The results of the AGM will be communicated to the ASX shortly after conclusion of the AGM. Yours faithfully Jane Bowd Group Company Secretary
2019 COCA-COLA AMATIL AGM 15 May 2019 CHAIRMAN’S ADDRESS ILANA ATLAS - CHAIRMAN Ladies and gentlemen…. It is a privilege to join you today at my second Coca-Cola Amatil Annual General Meeting as Chairman. I will take the opportunity to discuss four things: • First, our financial performance; • Second, our partnerships and people; • Third, our progress in sugar reduction, sustainable packaging and carbon reduction; and • Finally, an update on the Board. I ’ll then ask Alison to provide more detail on the Company’s performance by segment and to comment on the outlook for this year. And as usual we are happy to take questions on these or any other topics at the appropriate point in today’s proceedings. 2018 was a significant year for Coca-Cola Amatil. It marked the first year of our two-year transition program, as we invested today for a stronger and more sustainable organisation tomorrow. Our 2018 earnings were impacted by planned investment in our Australian and Indonesian businesses and the implementation of container deposit schemes, compounded by economic factors in Indonesia and operational challenges in Papua New Guinea. Our overall Group result from continuing operations for 2018 was a 3.9 per cent decrease in underlying earnings per share 1 with a 7.0 per cent decrease in EPS 1 over the full year. There was a 1.1 per cent increase in trading revenue 1 to $4.75 billion, and a 6.5 per cent decrease in underlying earnings before interest and tax 1 to $634.5 million. Profit attributable to shareholders 1 from continuing operations (before non-trading items) also decreased 6.5 per cent to $388.3 million. The final dividend declared was 26.0 cents per share, franked at 50 per cent, representing an underlying payout ratio of 87.6 per cent for the full year and a total dividend of 47 cents Despite strong performances in our New Zealand, Fiji and Alcohol and Coffee businesses, our Group results are not where the Board would like them to be. Coca- Cola Amatil’s medium and long-term value is the main focus of the Board’s work. Our plan is for the business to return to mid-single- digit growth in earnings per share from 2020. 1 of 11
Our planned investment in our Australian Beverages and Indonesian businesses, will continue in 2019. The Board is pleased with the progress of the transformation of these businesses in partnership with The Coca-Cola Company and the encouraging signs we saw in both markets in the second half of last year. In November 2018 we announced the conclusion of the strategic review process of SPC and the decision to proceed towards divestment. SPC has been a much-loved part of the Amatil portfolio since 2005, and has a great history as Australia’s oldest fruit processing company. We’re confident that the divestment is the right course for SPC. Given the uncertainty of the financial outcome of the sale process and the wide range of offers received, we recognised a non-cash impairment of the carrying value of SPC’s net assets to zero in the 2018 financial year. The impairment did not impact the Group’s underlying result but was reflected in our statutory result. There has been strong interest in the divestment process and we are currently in negotiations with a short list of parties. Coca-Cola Amatil has a long and proud history of successful brand partnerships, based on trust and shared values. As in previous years, we have worked closely and successfully with all of our partners, including The Coca-Cola Company, Beam Suntory, Monster Energy and Molson Coors International. In 2018 The Coca- Cola Company “Beverages for Life” strategy benefit ed Amatil in all of our markets with a renewed consumer centric approach. The year saw us work closely together to meet the constantly changing needs of our customers and consumers preferences including the expansion of the Coca- Cola No Sugar rotational flavours, and Amatil’s Mount Franklin flavoured stills and Mount Franklin sparkling in a can. In addition to an unrivalled pipeline of new product development across all of our markets - such as New Zealand’s Coca-Cola With 100% Stevia and new packaging formats for Frestea - we extended our shared portfolio with the joint acquisition of a 45 per cent interest in the Australia-based Made Group. Made is the creator of a great range of popular “better for you” brands including Cocobella, Rokeby Farms and Impressed Juice. We remain aligned on our ongoing investment in the Accelerated Australian Growth Plan, and on delivering the category and brand portfolio plans within our Indonesian Accelerate to Transform strategy. Both these plans involve joint investment with revenue and earnings growth as their priorities. We look forward to more opportunities to grow together with our partners across our markets utilising the unrivalled portfolios of all our brand partners. The Board understands that our success as an organisation depends on the capabilities of our people and fostering a positive culture consistent with our values of focusing on Today & Tomorrow, Taking the Initiative & Owning the Outcome, and being Straightforward & Open. As I have said before, good people don’t end up here by accident; when we find them, we must provide exce llent career and development opportunities, and appropriate reward and recognition. 2 of 11
In 2018 we again invested significantly in the capability of our Indonesian team. The objective of this was twofold. First, to support the delivery of the Accelerate to Transform strategy, and second, to develop a replicable model that could be leveraged in other territories. We are now seeing the benefit of this investment as we implement the Indonesian operational excellence program in Papua New Guinea. This is delivering a noticeable shift in both the culture and performance of the Business. Our diversity and inclusion objectives are aligned to the needs of our business. We are heading in the right direction in relation to gender diversity, with 34 per cent of women in senior executive roles compared to 31 per cent in 2017. While we are pleased with this progress we know there is more to do, particularly to improve gender diversity in sales, supply chain and operational roles. Our involvement in programs including Women in Warehousing, Supply Careers for Women and Women in Drinks will help to do this. The David Gonski Women in Leadership program is now in its fourth year of supporting the development of our female talent across Amatil. I’m very pleased to welcome a number of participants in this year’s program who are in the audience today. The results of the program speak for themselves, with many graduates from past years programs gaining promotions, pursuing further professional development opportunities and importantly ‘paying it forward’ by sharing their learnings with other women in their teams and the business. We also know that achieving diversity outcomes requires an inclusive culture and practices. Our actions in 2018 included: • continuation of our Australian Kids@Work vacation care program; and • receipt of the Rainbow Tick accreditation for our New Zealand business. Turning now to sustainability. In 2018 we built on our commitment to deliver a lasting, distinctive and positive contribution to the world in which we live. We recognise that our approach to sustainability continues to underpin our future performance. Our stakeholders are looking to us to act. Our sustainability framework is focused on the areas where we can have the greatest impact, our people, consumer wellbeing, the environment and our communities. The release of our 2020 goals in our 2017 Sustainability Report was well received. This was the first time we set public commitments in these areas, and we have made good progress toward these goals. In some areas we have already achieved our target. Three priority areas for Amatil are consumer wellbeing, packaging neutrality and carbon reduction. These are not fringe issues for Amatil. And in relation to wellbeing and packaging, they are both central to our commercial offering, with customers and consumers heavily focused on these issues, and to our obligations as an industry leader. 3 of 11
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