84 PORTUgAL, AdAPTiNg TO EACh COUNTRY´S REALiTY

85ANNUAL REPORT 2014

PORTUgAL, AdAPTiNg TO EACh COUNTRY´S REALiTY

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86 PORTUgAL, AdAPTiNg TO EACh COUNTRY´S REALiTY

Adapting to each

The integration of Portugal into Coca-Cola iberian Partners’ operation map, with a model adapted to the local features, has beencriticalduringthe2014financialyear.

ANdRéS CURBELo dIRECToR oF opERATIoNS, poRTUgAL

“ The strategy in Portugal has been focused on creating more value for our customers and consumers”.

country s reality

87ANNUAL REPORT 2014

Portugal in 2014Key figures

voLUmE oF LITERS oF oUR pRodUCTS SoLd

NET TURNovER EvENTS

ENvIRoNmENTAL RATIoS

120128.6

2013

2013

20132013 2014

2014

20142014

VariationVariationVariation

Variation

Ncsd Non-carbonated Total

+7.17

Reduction of water

consumption in the period

2013/2014

(Millions of liters)

187.11176.5010.61197.25186.4010.84

+5.40%+5.60%+2.26%

0.41MJ/lpf* 1.88 l/lpf*The energy consumption ratio

stayed at the same level as the previous year

Improvement of the water consumption ratio, from 2.02

l / lpf* to 1.88 l / lpf*

(Millions of euros)

sports, social and cultural events in Portugal

In 2014, the Coca-Cola System has held

129

CSD Carbonated

*lpf:perlitersofproductproduced

88 PORTUgAL, AdAPTiNg TO EACh COUNTRY´S REALiTY i Our team

building the...

in line with our future strategy and Coca-Cola iberian Partners’ growth, Portugal has focused its business plan on bringing greater value to clients and consumers. These plans have been developed through three keypillarsofaction:anewRoutetoMarket model, the strengthening of the Modern food channel and expansion into the Organized horeca (immediate consumption) channel.

Additionally, 2014 has been a key year, as the contribution of Portugal's production and logistical capacities has been critical for responding to the iberian market demand as a whole.

On the other hand, the year has also been marked by the consolidation of financialmanagement.Theintegratedmanagementoffinances,planningandcontrol has provided the operation in Portugal with a position that is more robust and more aligned with the rest of the company.

The contribution of Portugal's production and logistical capacities has been critical for responding to the Iberian market demand as a whole.

2014: a key year

future

vANESSA FERREIRABUSINESS pLANNINg & CoNTRoLLINg mANAgER

“ We ended the year with total sales of 197 million liters and a net turnover of 128 million euros (+7% in 2013)”.

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89ANNUAL REPORT 2014

We prepare our team for

Organizationally, we have established the foundations for adapting the management structure and team to the challenges of the market and to our way of bringing value to clients and customers.

The renewed Portuguese team acquires lines of coordination of all the different functional responsibilities, thereby increasing the exchange of better practices and aligning the work systems with the rest of the company.

This centralized coordination goes hand in hand with high autonomy, and can adaptresponsestothespecificitesofthe Portuguese market.

in 2015, the new operational model is prepared for full deployment of the management team with clearly definedrolesandresponsibilities,andsupported by new work processes and information systems.

Plans for employee communicationAs in Spain, the Ambassador program arrived in Portugal during the year. 100% of the staff participated in the Don’t be lost for words sessions.

Additionally, the Move Week initiative was developed, driven by The

100% of staff participated in the 'Don’t be lost for words' sessions.

Coca-Cola Company, with activities for promoting healthy lifestyles among our employees.

The launch of a new continuous improvement facility, focused on aiding implementation of an Operational Excellence methodology in the continuous improvement process, was also a highlight.

the future

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90 PORTUgAL, AdAPTiNg TO EACh COUNTRY´S REALiTY i Consumers

Offering a variety of quality productsto our consumersWith the aim of providing greater value to the consumer, the channel and of generating a higher turnover, a series of promotional activities has been developedinPortugal,includingthefollowing:

Sampling Coca-Cola Zero

World Cup in Brazil

Sampling Coca-Cola zero in the horeca Channel, conducted in Area iV (Northeast). The project functioned through the distribution to homes of a ‘Coupon for a Coca-Cola’.

The promotion of the World Cup in brazil, also at a national and multichannel level, was developed in the months of May and June.

Fanta Coupons

Fanta summer

Share a coke

Other promotions

This promotion has been launched in the areas of the country that are most densely populated (Central-Northern, islands, Algarve). directed at the horeca and food channels, more than 1.6 millioninformationalleafletshavebeendistributed to consumer homes, with different offers for each channel.

fanta summer (Get them to drink Fanta), at a national and multichannel level (horeca, gas stations, food), gave out free gifts through pin codes located on each bottle.

Share a coke, the successful bottle personalization campaign has been implemented in the whole country and in multichannels (Modern and Traditional food, gas stations, movie theaters, cash & carry branches, ...). We have used digital platforms in the development of this campaign.

At Christmas the ‘Make somebody happy‘ campaign was launched in the gas stations and food channels, reaching all parts of the country.

Other promotions have also been activated regarding food and on the go consumption opportunities.

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92 PORTUgAL, AdAPTiNg TO EACh COUNTRY´S REALiTY i Customers i Suppliers

Portugal's supply chain also has evolved, with a clear aim for optimization, contributing to all the iberian market.

We managing to help our

Stores New exports warehouse

Trucks

development of the Supply Chain

customers grow

This evolution has led to new logistical organization in the areas of storage and transport.

Additionally, in order to bring more value to our customers and consumers, a new Route to Market model has been launched, the Modern food channel has been strengthened and a commitment has been made to grow the Organized horeca channel.

The new Route to Market model is basedonthephilosophyofbenefittingfrom the commercial strength of our distribution partners on the basis of an exhaustive portfolio and greater operationalefficiencyofthecommercialfunctions.

This model allows Coca-Cola iberian Partners to have a greater focus on development of the market. in 2014 we launched a pilot project which enabled us to test and improve the model so that we can begin deployment in 2015 on a larger scale.

+ 6,000 Pallets/Month

+115,000 Whole pallets issued

+ 3,700 trucks

+ 90,000 Tons

+ 128,000 Pallets

Capacity

5,000 Pallets

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Modern food has begun a three year plan to reduce the promotional hyperactivity which is characteristic of the Portuguese market.

The operation of downsizing the family bottle, promoting the 1.5L PET bottle over the 2.0L PET bottle has brought a more accesible price to the consumer, increasing sales transactions and the total volume.

Rationalization of promotional pressure will help all in the sector to improveprofitabilitythroughoutthedistribution chain.

Additionally, a commitment has been made to develop Organized horeca, strengthening our ability to close commercial deals with key customers, both at national and regional levels.

Portugal has subscribed to the new Purchasing model that follows the 7 steps sourcing process, based on the collaboration and joint decision-making on the Purchasing board, and which ensures long-term sustainability of the model and of the supplier-customer relationship.

Establishing ties of responsibility with our

suppliers

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94 PORTUgAL, AdAPTiNg TO EACh COUNTRY´S REALiTY i Environment i Society

Respect for the

Several projects have been carried out in connection with the environment, following Lean Six Sigma methodologies, with the aim of analysing processes and reducing water and energy consumption ratios.

This has allowed us to optimize water consumption throughout the year, from 2.02 l/lpf* to 1.88 l/lpf*, and to maintain energy consumption at 0.41 MJ/lpf* (*per liters of product produced).

Even more important than this has been the analysis of environmental processes by carrying out a mapping (Process Management Control System) and definingKPIs,whichallowsustohavegreater control over the processes.

in consequence, our plant in Lisbon has received the iSO 50001 Energy Efficiencycertificate.

environment

Recognized and awarded projectsfOR bEST PRACTiCES

The Six Sigma project won the prize for best Reduction Project among the 270 projects worldwide that are represented by the Coca-Cola System.

ItwasalsoafinalistintheSixSigma Excellence Awards by the iQPC (in conjunction with projects from companies such as gE, bosch and VW).

The plant in Lisbon has been recognized by the TOP 10 Energy Savings, promoted by the WWf in conjunction with the Coca-Cola Company.

Additionally, since 2006, it has the Water Savers recognition from WWf and The Coca-Cola Company, makingitthefirstplanttoreceivethis award.

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Participating in

to promote well-being, solidarity and culture

in 2014, the Coca-Cola System in Portugal held 129 sports, social and cultural events.

Sports arenaAmongthemostnotableare:

•Coca-Cola Cup. The youth football competition in which 300 teams participated. Additionally, around 30,000 people visited the Vida Activa Park that was used for the competition.

• desporto mTB. This MbT competition, which is run from Porto, enjoyed the presence and collaboration of the Powerade brand.

• desporto Running. The Powerade brand was also present at this athletics event carried out in Porto.

Social activityhiglights of the company’s focus on social solidarityare:

•Mais para todos was a solidarity campaign developed together with Lidl to raise funds for those who are most in need.

•Together with the Food Bank, launched diverse activities for food collection.

•In the campaign Give and Receive, another social initiative, the company collaborated with Cáritas Portugal.

•finally, and in our desire to give greater value to our customers, we opened the doors to our factory so that the Portuguese hotel and Restaurant Association could hold meetings there.

society

Share a cokeTo support the arrival to the market of the Share a Coke campaign, we took the campaign to the streets.

in doing so, different activities were developed together with customers, collaborators, etc., in which personalized bottles were given out.

Additionally, we have taken advantage of relevant events to boost the campaign motto. Such is the case for the Champions League match between SportingLisbonandBenfica,forwhicha presentation was made, with the footballers buyo and futre as hosts.

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