Corporate soCial responsibility report 2011

SUSTAINABILITY@CCA

WELCOME TO COCA-COLA AMATIL’SCORPORATE RESPONSIBILITY REPORT 2011

SCOPE OF THIS REPORT

OUR APPROACHCoca-Cola Amatil (CCA) has reported on its sustainability performance since 2006, reporting every 18 months. Allwater, energy, waste and packaging and community metric data is reported on a 12 month calendar year. Thisreport focuses on the sustainability issues – Environment, Social and Governance – which are of greatestrelevance to our stakeholders and our business.

Water stewardship – saving water in the manufacturing process through recycling, technology and best practise;protecting water sources; implementing measures to prevent water pollution and other environmental breaches.

Packaging, recycling and litter – investing in technology to reduce volume of raw materials in primary andsecondary packaging; assisting customers and consumers by investing in public place recycling projects and a new‘whole of industry’ national recycling scheme; recycling more manufacturing waste from facilities; supporting litterabatement campaigns.

Carbon and energy – investing in technology which is reducing the carbon footprint of every PET bottle by morethan 20%; investing in solar energy systems for a new Distribution Centre; providing customers with new energy-efficient coolers.

Choice for consumers – Expanding our product range to provide a low-kilojoule or no-kilojoule option for mostsugar-sweetened beverages; voluntarily providing dietary intake and kilojoule information on our labels; providingchoice with spring water and fruit and vegetable products; providing smaller portion packaging sizes for food andbeverages.

Our People – fostering a diverse and inclusive workplace culture with fully engaged employees; working towardsachieving best-practice occupational health and safety status in all workplaces; developing wellbeing and fitnessprograms for staff.

Governance – providing stakeholders with fully transparent reporting and disclosure; incentivising managementwith short and long-term hurdles aligned with shareholder interests; implementing stringent internal risk and controlmechanisms; implementing and enforcing Codes of Conduct and other policies; implementing stringentoccupational health and safety standards.

Community – supporting our local communities through Foundations and workplace giving programs, developingour Remote Communities Strategy in Australia and being a generous donor to communities in need.

SCOPEThis Sustainability Report covers our activities from May 2010 to November 2011, with the Environment, Workplaceand Community metrics data covering the calendar year 2010.

Unless otherwise stated it includes the beverage bottling, sales and distribution activities in the five countries inwhich we operate and also covers SPC Ardmona and Grinders Coffee. The manufacture of our alcoholic ready-to-drink beverages, predominantly Jim Beam and Cola, is included in Australian beverages.

For the first time we are reporting metrics on water, energy and waste for Bluetongue Brewery, which is a 50:50joint venture between CCA and SABMiller.

While not audited by a third party, the content of this report is consistent with the global framework for corporatesocial responsibility established by The Coca-Cola Company (TCCC) and reports under the four pillars ofEnvironment, Marketplace, Workplace and Community.

The company’s Australian beverage business constitutes approximately 80% of CCA’s Group business, and thisReport reflects that contribution.

CONTACTSDirector Media and Public Affairs:

Sally Loane

Sally.loane@ccamatil.com

Manager Investor Relations:

Kristina Devon

Kristina.devon@ccamatil.com

For any queries, comments or suggestions please contact

Aus.sustainability@ccamatil.com

BUSINESS

Wall Street Journal Asia 200 2010 – CCA was ranked second most admired company in Australia by the 2010Wall Street Journal Asia 200 Annual Review – one place up from our score of third in 2009. The review recognisesperformance across five categories – financial reputation, corporate reputation, quality, innovation and vision.

Corporate Confidence Index 2010 – CCA achieved excellent scores in the 2010 Corporate Confidence Index, asurvey of fund managers and broking analysts. We were scored top ranking in two categories – managementpredictions coming to fruition and communicates well with the investment community. In all other categories CCAscored in the top two, three or four.

CFO DealBook Awards 2010 and 2011 – CCA’s Corporate Treasury team won the CFO DealBook AwardsCorporate Treasury Team of the Year twice – in 2010 and 2011 – for outstanding achievement in the financialindustry. Our team was recognised for outstanding achievement for teamwork, technical excellence, creativethinking and problem solving, risk management, capital raising and cash management.

CPA Australia 2011 – CCA was named a “Recognised Knowledge Partner” in 2011 by CPA Australia for ongoingcommitment to the professional development of our Finance employees under our Learning and Developmentprogram. CCA Senior Commercial Manager Chris Thompson was the face of the 2011 CPA media campaign.

Australian Mobile Awards 2011 – CCA’s online purchasing iPhone application “myCCA On The Move” wasawarded best “Line of Business” app at the 2011 Australian Mobile Awards for creativity and business solutions.The myCCA app was built by our Customer Service and IT teams in conjunction with Webling.

2011 Top Companies for Leaders – CCA was placed number 15 in the AON Hewitt/Fortune/The RBL Groupsurvey’s Top 20 Asia-Pacific companies, acknowledging the company’s commitment to leadership development.

IndonesiaCorporate Image Award 2011 – CCA Indonesia received a 2011 Corporate Image Award for achieving no 2 in theBeverage Category for Indonesia’s Most Admired Company.

COMMUNITY

Foodbank Australia Award 2011 – SPC Ardmona won Foodbank Australia’s Collaboration Award in 2011 forbeing a pivotal partner in the provision of staple food to Australian welfare agencies trying to promote balancedmeals to those in need.

Coca-Cola SystemsMcDonald’s System “Press On” Awards 2011 – The Coca-Cola Systems in Australia and New Zealand (CCAand Coca-Cola South Pacific teams) were awarded two “Press On” Awards for “above and beyond” support to theMcDonald’s System during the Queensland floods and the Christchurch earthquakes. The Awards recognisespersistence and pressing on, despite huge challenges, and delivering support and creating significant value for theMcDonald’s system.

IndonesiaAustralian Honours 2011 – One of CCA Indonesia’s distinguished commissioners, Mr Moetaryanto, received anAO from the Australian Government in 2011 for his dedication to building business relationships between Indonesiaand Australia.

ENVIRONMENT

Mount Franklin Easy-Crush BottleAustralian Packaging Design Awards 2011 – CCA’s Mount Franklin Easy-Crush Bottle won Gold in theSustainability category of the 2011 Australian Packaging Design Awards, hosted by the Packaging Council ofAustralia. The Award is for an existing brand for which the packaging demonstrates a significant advance inenvironmental considerations and provides a benchmark for the segment.

Eastern CreekAustralian Supply Chain and Logistics (SCLAA) Environmental Excellence Award 2010 – CCA’s EasternCreek Distribution Centre – which has won five national Awards for environmental excellence - won the 2010Australian Supply Chain and Logistics (SCLAA) Environmental Excellence Award, which recognised corporateleadership contributing to sustainability.

Mercury Logistics Awards 2010 – CCA’s Eastern Creek Distribution Centre won the award for Best GreenInitiative in the 2010 Mercury Logistics Awards.

Head Office – Coca-Cola PlaceDevelopment of the Year 2010 – CCA’s head office in Sydney, Coca-Cola Place which was built by the InvestaProperty Group, won the 2010 Excellence Award for Development of the Year from the Urban Taskforce ofAustralia. Coca-Cola Place has a 6-star Green Star rating and a 5-star NABERS energy rating, and featurestrigeneration for energy and a grey water recycling system.

Water SavingPrime Minister’s Waterwise Awards 2010 – CCA Australia was selected as a finalist in the Prime Minister’sWaterwise Award at the 2010 Australian Water Association Awards. CCA’s submission was recognised fordisplaying significant innovation in terms of delivery and engaging staff, stakeholders and the general community.

Sydney Water 1 to 5 Waterwise Awards 2010 – CCA’s two Sydney manufacturing sites, Northmead andSmithfield, were recognised as 5 Star performers in the Sydney Water 1 to 5 Waterwise Awards.

IndonesiaCorporate Forum for Community Development Awards 2010 – CCA Indonesia’s Coke Farm projects won theGold Award in the Ensure Environmental Sustainability category in the Corporate Forum for CommunityDevelopment awards in collaboration with the Office of the Co-ordinating Minister for People’s Welfare and PersadaMulti Cendekia.

PR Program of the Year 2011 – CCA Indonesia’s Coke Farm projects won the Care for Ground Water SavingAward from the Central Java government; PR Program of the Year from Mix Marketing magazine and BestCompany under the “Environmentally Friendly Company Category” from the Mayor of Northern Sumatra.

Car Free Day Award 2010 – CCA Indonesia won the Car Free Day Award in recognition of continuous support tothe Indonesian Government’s program for clean air in Jakarta.

Carbon Disclosure ProjectCarbon Disclosure Leadership Index 2010 – the Carbon Disclosure Project (CDP) Report identified CCA in theASX200 and NZX50 Carbon Disclosure Leadership Index for the fourth year in a row. CCA was in the top-third ofAustralian and NZ companies which disclose carbon use and the high score is based on strong understanding andmanagement of climate change risks; strategic focus and commitment to understanding business risks of climate

change; ability to measure and manage the company’s carbon footprint and relevant and regular disclosure to keystakeholders.

Project Catalyst – improved sugar cane growing practicesBanksia Environment Award 2010 – Coca-Cola South Pacific (CCSP) in Australia partnered with the WorldWildlife Fund (WWF) and a the Natural Resource Management Group Reef Catchments in Mackay Whitsunday,Queensland, to work with local sugar cane farmers to improve the quality of water flowing into the Great BarrierReef catchments.

CCSP’s Project Catalyst won a Banksia Environment Award in 2010 for its work aiming to reduce the pesticide,herbicide and sediment load leaving sugar cane farms in an effort to reduce the impact on the Great Barrier Reef.The first stage of the project focused on water management and precision agriculture practises.

MARKETPLACE

CCA AustraliaWoolworths Supplier of the Year 2010 – CCA was named 2010 Woolworths Supplier of the Year and also, for thesecond year in a row, won Top Supplier (+$50 million). The Woolworths Supplier of the Year program is based onthe principle of continuous improvement with the goal of driving both businesses forward. Some of the key projectsCCA’s team undertook which contributed to the Award included maximising the promotional calendar, activatingcold drinks via 500 additional cooler placements and raising funds for the Avner Nahmani Pancreatic CancerResearch Foundation with our Deep Spring brands.

Progressive Enterprises (Woolworths NZ) National Supplier Awards 2011:

Field Team Excellence Award - Beverages: CCA

Supplier of the Year Award – Beverages: CCA

Key Account Manager of the year: Murray Burgess

Supreme Supplier of the Year Award: CCA

Lagardere Supplier of the Year 2010 – CCA won the 2010 Lagardere Supplier of the Year and Most Pro-ActiveInnovative Supplier. Lagardere operates outlets under the banners of Newslink, Relay and Hub convenience withinAustralia’s air and rail transport hubs.

Lucky 7 Supplier of the Year 2010 – CCA won the inaugural 2010 Lucky 7 Supplier of the Year Award, forexcellence in customer service, profitability, promotional effectiveness and in-store merchandising.

Australian Association of Convenience Stores 2010 – CCA won two 2010 Supplier of the Year Awards from theAustralian Association of Convenience Stores – 2010 Beverages Supplier and Supplier Grand Champion forexcellence in customer service, data integrity and business conduct.

APCO Supplier of the Year 2010 – CCA’s Convenience and Petroleum team won the 2010 APCO Supplier of theYear Award for excellence in service, new product launches, delivery support and payment systems.

Brand Ambassador of the Year 2010 – CCA’s Brands Mixology manager Dylan Howarth won the title of BrandAmbassador of the Year at the 2010 Australian Bar Awards for excellence in brand development and education anddevelopment of Australian bar culture.

On-Premise Training Program of the Year 2010 – CCA’s Mixxit team won the 2010 On-Premise Training Programof the Year at the Australian Liquor Industry Awards for excellence in bartender training.

Food Industry Association Food and Beverage Industry Awards 2010 – CCA’s Kewdale, WA team werefinalists in the 2010 Food Industry Association Food and Beverage Industry Awards, in the Sustainability andEnvironment category.

Contractor of the Year 2011 – CCA’s Quirks team won 2011 Contractor of the Year at the BP ContractorsAccreditation Awards for excellence in service.

BrandsAustralia’s Top 10 Most Trusted brands 2010 – Mount Franklin was named as one of Australia’s Top 10 MostTrusted brands in Millward Brown’s February 2010 survey. Mount Franklin was 7th in the Top 10, and one of onlytwo Australian-owned brands on the list.

Australian International Beer Awards 2010 – Bluetongue Brewery won nine medals at the 2010 Australian

International Beer Awards for its Bluetongue premium beers in both packaged and draught.

WORKPLACE

CCA AustraliaSkills Victoria Industry collaboration Award 2011 – SPC Ardmona, in collaboration with the AustralianManufacturing Workers’ Union won the Victorian Industry collaboration Award at the 2011 Victorian Training Awardsrun by Skills Victoria for a National Food Institute induction-to-leadership training program for more than 2000workers in the Goulburn Valley.

Vero Achievement Awards 2010 – CCA’s Kewdale facility in Western Australia and SPC Ardmona’s Sheppartonfacility won the 2010 Vero Achievement Award for its excellent commitment to risk management.

NSW Australian Supply Chain and Logistics Awards 2010 – CCA’s Linda Leo won the NSW Young Professionalin Supply Chain Award in the NSW Australian Supply Chain and Logistics Awards (SCLAA).

JJ Liston Trophy 2010 – CCA’s grocery customer service rep in Melbourne, Shane Valenti, was named jointwinner of the 2010 JJ Liston Trophy by the Victorian Football League, for best and fairest player in the VFL.

Andrew McAuley Inspiration AwardBruce Herbert, CCA’s Director of Supply Chain, won the 2010 Andrew McAuley Inspiration Award, an internal CCAAward that recognises a work colleague we admire for his inspirational work inside and outside work.

INNOVATION AND SUSTAINABILITYThe success of CCA of today – profitable, modernand customer-centric – has been driven by continuous and large-scale investment in capital projects focused oninfrastructure and technology innovation.

This innovation culture not only drives positive sustainability outcomes, it impacts very positively on our employees.Our people, supported by high-tech, efficient tools and open, modern workplaces, are not afraid to take calculatedrisks.

One of the best examples of how CCA’s culture of innovation impacts across the entire business and deliverssustainable outcomes is the rollout of a project which represents CCA’s biggest capital expenditure in 10 years –our $450 million investment in ‘blow-fill” or bottle self-manufacture.

This is new, cutting edge technology which excites and motivates our people – we’re seeing them coming up withnew innovations using the technology. As well, it enables us to manufacture PET resin plastic beverage bottles onour production lines, delivering greater efficiencies in production, cost and customer service, and also significantsavings in raw materials which is helping lower the carbon footprint of every bottle by more than 20%.

This, along with the construction of a new $57 million facility at our Eastern Creek site to manufacture the PET resinpre-forms and closures (bottles caps) we use to make our bottles, is a major step towards the vertical integration ofour food and beverages manufacturing operations across the Group.

An important outcome of making all bottles and caps with less PET resin – “lightweighting” – is that we will savearound 9000 tonnes of these raw materials every year.

MOUNT FRANKLIN – A MODEL FOR SUSTAINABILITY@CCAWe have launched the ‘Mount Franklin Easy-Crush Bottle’, currently the lightest weight 600ml spring water bottleproduced in Australia, with excellent results. In trials, we surveyed consumers and found that the overwhelmingmajority surveyed appreciated the fact that we’re using less plastic in the packaging and saving resources.

Perhaps more than anything else, our Mount Franklin spring water best represents CCA’s sustainability story. Notonly does it have a lighter carbon footprint, but it continues to donate funds to breast cancer support – more than$1.35 million dollars in total so far through our first partnership with the NBCF, and now in a new partnership withGlenn McGrath’s McGrath Foundation, where we turn our Mount Franklin bottle caps hot pink in support of breastcare nurses.

CONTINUOUS INVESTMENT LEADS TO STRONG RESULTS – DESPITE HEADWINDSAt the same time as some of our peers in Australia’s food and beverage manufacturing sector have downsized orleft Australia to process offshore, CCA is displaying a resilience and efficiency that is derived from continuinginvestment in high-tech infrastructure, rigorously taking costs out of the business and relentlessly focusing on liftingour levels of service to our customers.

Despite experiencing one of the most challenging periods in recent history – the strength of the Australian dollar;devastating natural disasters in Queensland and New Zealand, rising input costs and low levels of consumerconfidence in Australia – we are pleased to report that CCA did not slow or downsize our investment program in oursustainability projects or in infrastructure and processes.

We are convinced that this continuing investment strategy has contributed to our continuing strong results,

particularly for the extremely challenging first half of 2011, where we delivered a 5.5% profit increase.

As has been the case since 2001, CCA’s earnings per share (EPS) and total shareholder return (TSR) havecontinued to materially outpace the market. CCA’s value creation for shareholders in 2011, at 277% growth, wasmore than double the rate of return for the S&P/ASX 100 Accumulation Index (124%).

SUSTAINABILITY@CCA – ENVIRONMENT, MARKETPLACE, WORKPLACE ANDCOMMUNITYEnvironmental sustainability, particularly in the largest part of our business, the Australian beverage operations, isan integral part of our business strategy. CCA Australia is one the most efficient users of water in the globalCoca-Cola System; we’ve delivered some of the lightest-weight beverage bottles into the market across the Group;and we’re assisting our industry partners deliver the next phase of public place recycling infrastructure in Australia –an expanded national system under a new industry organisation.

This new project, combined with public education through Keep Australia Beautiful campaigns, is in our view amuch more cost-effective and efficient solution to litter than the expensive and inefficient container deposit scheme(CDL), which is nothing more than a discriminatory tax on beverages.

ENERGY-EFFICIENT FRIDGESAs well as working to lower our own carbon footprint, we’re helping our customers do the same. We are investing insome of the world’s most energy efficient cold drink fridges and coolers, which can deliver savings to our customersof up to $700 per annum in energy costs. The NZ-based manufacturer of some of these coolers, Skope Industries,won our 2011 Overall Supplier of the Year award in August for their commitment to customer service andsustainability.

CLEAN UP BALI AND BOROBUDURIn Indonesia, our daily clean up of rubbish from six of Bali’s iconic beaches culminated in a three-day environmentalevent in June, the Big Bali Eco-Weekend, where senior Government officials and NGOs joined us to plan how tomake Bali’s environment cleaner and greener. Thousands of tourists and locals helped us celebrate the event withthe release of baby turtles from our Kuta Beach Turtle Hatchery and two days of surfing competitions.

We’re also helping UNESCO fund the maintenance of the eighth century Borobudur Temple in Magelang, CentralJava, which was damaged by the volcanic activity from Mount Merapi.

ENGAGING EMPLOYEES IN SUSTAINABILITYSustainability September is an annual, month long program for CCA’s Australian employees to drive sustainabilityawareness through the workplace. The program, which began in 2008, is now a comprehensive employeeengagement campaign which encourages our people to not only work better at recycling, saving water and energy,health and wellbeing and charitable giving, but also enables them to answer common questions we get asked aboutour business, our policies and our products.

In New Zealand our people are leading the way with many excellent recycling initiatives, like the “Green Teams”which patrolled the Karapiro World Rowing Championships over six days, encouraging patrons to recycle anddiverting more than 6 tonnes of beverage containers from landfill.

AUSTRALIAN EMPLOYMENT COVENANT – CCA’S INDIGENOUS STRATEGYIn 2011 CCA signed the Australian Employment Covenant, pledging to identify 150 jobs which could be filled byindigenous Australians. This goal is part of the work of our Embracing Difference Council, a group of managers whoare developing an increase in diversity across the business. This, combined with our support through theCoca-Cola Australia Foundation of a number of organisations supporting young indigenous people through schooland university, as well as our Remote Communities Strategy which is increasing availability of spring water andlow-kilojoule beverages for people living in remote communities, are now all linked under an Indigenous WorkingGroup which is developing an Indigenous Strategy for our business.

THANKS TO OUR STAFF FOR THEIR WORK DURING THE NATURAL DISASTERSWorking together for the good health of our communities is one of the bedrocks of our company’s commitment to

being a trusted corporate citizen.

Hundreds of our people who were directly involved in the devastating floods in Queensland and earthquakes inChristchurch, New Zealand displayed enormous courage during the disasters and great compassion as theyhelped their communities and customers recover in the aftermath.

We want to personally thank everyone who was involved and who helped out – from the rescue of two of our staff inour Christchurch facility who were injured, to those who helped load pallets of Mount Franklin bottled water intoSES helicopters from our Richlands facility for delivery into the stricken communities, to those who helped theircustomers, big and small, clean up and get back on their feet afterwards.

CCA donated nearly one million bottles of Mount Franklin and Pump spring water and 85,000 kilograms of SPCArdmona food to disaster victims and volunteer workers in both countries. And our staff donated funds to disasterrelief efforts from their salaries, which CCA matched – $114,000 in Australia and $22,000 in NZ.

GOOD CORPORATE CITIZENSHIPFinally, we fully understand that great results are just part of what it takes to build and maintain trust in our companyfrom our wide range of stakeholders. We have much to celebrate, from our outstanding performance in the 2010Corporate Confidence Index, to being ranked second most admired company in Australia by the 2010 Wall StreetJournal Asia 200 Annual Review, to encouraging our people – like Bruce Herbert, our Supply Chain Director, whowon CCA’s 2010 Andrew McAuley Award by raising thousands of dollars for poor families in Kenya – be the bestthey can be, not just at work, but also outside the organisation.

We will continue to be a company which works hard to deliver on all the indicators – Environmental, Social andGovernance – as well as Financial. We will continue to contribute to best practice in our industry and continue totake an active part in the national and global debate on how business can promote sustainable development.

David Gonski AC – ChairmanTerry Davis – Group Managing Director

COCA-COLA AMATIL (CCA)

AN ASX TOP 30 LISTED COMPANY, CCA IS ONE OF AUSTRALIA’S LARGEST PREMIUM BRANDEDBEVERAGE AND FOOD COMPANIES AND ONE OF THE WORLD’S TOP FIVE COCA-COLA BOTTLERS.

CCA operates non-alcoholic and alcoholic beverage businesses in Australia and New Zealand and non-alcoholic beveragebusinesses in Indonesia, Papua New Guinea and Fiji. CCA owns Australia’s largest premium packaged fruit and vegetablecompany, SPC Ardmona.

Total number of operations, covering all alcoholic, non-alcoholic beverage facilities andfood operations

31

Total number of Distribution Centres 132

Total number of employees 2010: 14,729

Total trading revenue 2009: $4,403.8 million

2010: $4,490.3 million

Total volumes of non-alcoholic beverages sold 2009: 555.1 million unit cases

2010: 550.8 million unit cases

Net profit after tax 2009: $449 million

2010: $506.6 million

Estimated number of consumers CCA has access to 270 million

Total number of active customers Approximately 600,000

Total number of employee shareholders (Australia) in 2010 5609

The major brands we produce, sell and distribute include Coca-Cola, Coca-Cola Zero, diet Coke, Sprite and Fanta, MountFranklin, Pump, Pumped, Neverfail Springwater, Powerade Isotonic, Kirks, GLACÉAU vitaminwater Low Calorie, Mother energydrink, Goulburn Valley fruit juices and flavoured milks, Deep Spring, Grinders Coffee and SPC Ardmona and Goulburn Valleypackaged fruit and vegetable products, Taylors sauces and IXL jams. Our brands in New Zealand include all the Coca-Colabrands, L&P, Keri juices and Kiwi Blue springwater. In Indonesia, as well as the Coca-Cola brands, we produce Frestea, Adeswater, Minute Maid juices and Extra Joss energy drink, and Nature’s Own water in Papua New Guinea.

We produce a no-sugar or low-kilojoule option for almost every beverage containing sugar. We also have organic and the FIXRainforest Alliance certified Grinders coffee ranges.

CCA’s beer business has been conducted through Pacific Beverages, a 50:50 joint venture with global brewer SABMiller. Thepremium beer range, packaged and draught, includes Bluetongue, Peroni Nastro Azzurro, Peroni Leggera, Grolsch, PilsnerUrquell, Miller Genuine Draft and Miller Chill.

Pacific Beverages’ new Bluetongue Brewery was opened in June 2010 with an initial capacity of 50 million litres and world-classsustainable water and energy initiatives.

CCA has a premium spirits beverage business, with a portfolio which includes Jim Beam, Courvoisier Cognac, Canadian Club,Makers Mark, The Macallan, Teacher’s, The Famous Grouse and Laphroaig whiskeys, Russian Standard Vodka, SauzaTequila, Bols and Galliano liqueurs, Cruzan Rum and Courvoisier Cognac. CCA also manufactures, sells and distributes JimBeam and Cola and Jim Beam & Zero Sugar Cola alcoholic ready-to-drink beverages (ARTDs).

For more detailed information on our business, see our Full and Half Year Results statements, Annual Reports and ShareholderReviews at www.ccamatil.com.au.

CCA AT A GLANCE 2010

OUR APPROACHDeveloping our broad-based beverage and food business in a sustainable way is central to CCA’s core strategy andduring 2010 and 2011 we continued to embed sustainability considerations into operational and business planningprocesses.

We concentrate on continuous improvement against the largest impacts of our business operations and also look toour stakeholders – employees, customers, consumers, shareholders, governments, non-government organisationsand industry groups – for input on the issues of importance to them to help focus our efforts.

Our major ESG (Environment, Social and Governance) measures across the Group, including water and energyuse, recycling, product quality, occupational health and safety (OHS), diversity and many social issues, are reportedregularly to the CCA Board’s Compliance and Social Responsibility Committee.

CCA’S SUSTAINABILITY FOCUSOur efforts are focused on those sustainability issues which provide the greatest challenges and opportunities toour business and communities, including:

Continually improving water efficiency and protecting water sources

Reducing the environmental impact of packaging and developing beverage container recovery programs

Tackling energy use, reducing direct and indirect carbon emissions and assisting our customers to lower theirenergy use

Helping consumers by providing product choices and education

Helping our employees reach their full potential in safe workplaces where diversity is fostered

Maintaining strong corporate governance and policies throughout our business

Investing in our local communities

BEING PUBLICLY ACCOUNTABLEWe believe in being accountable and transparent and we have voluntarily reported our sustainability targets andinitiatives to a number of organisations, including the Carbon Disclosure Project (CDP) and SAM (formerly DowJones) Sustainability Index, for several years. Our reports and the assessment of them are publically available.

We also report specific environmental sustainability efforts under a number of regulatory and co-regulatoryschemes. In 2008 the largest part of our business, CCA Australia, was mandated to report on Energy EfficiencyOpportunities (EEO) for the first time and since 2009 we have reported our direct carbon dioxide equivalent (CO -e)emissions to the Federal Government as mandated by the National Greenhouse and Energy Reporting Act. Wehave also been reporting against the National Pollution Inventory since 1999 and we are a founding member of theNational Packaging Covenant, now the Australian Packaging Covenant.

CONTINUOUS IMPROVEMENT TARGETSAs a leading fast-moving consumer goods company with a strong focus on responsible manufacturing, CCA setscontinuous improvement targets for quality, food safety, OHS and environmental performance.

Our key targets, some of which are included as senior management KPIs, are stretch targets that will requireongoing focus to be achieved.

Every CCA manufacturing facility across the Group records monthly environmental metric data including energy,water and waste.

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When it comes to the supply chain, CCA is currently reviewing its procurement strategy with a goal of movingtowards procurement guidelines which consider the environmental impact of the products or services that weprocure and the environmental impact of the suppliers we procure them from.

DIVERSITYCCA has adopted the ASX Corporate Governance Council’s recommendations on gender diversity and hasdeveloped a Gender Diversity Policy to outline our objectives of creating fair, equitable and respectful workplaceswhere women are supported.

CCA has established overall gender balance goals and nominated targets for the CCA Board, senior executivesand managers and employees across the Group.

In 2011 CCA became a signatory to the Australian Employment Covenant committing the Company to a target of150 sustainable jobs for indigenous Australians, and began developing an Indigenous Employment Strategy. ThisStrategy links work being done by Coca-Cola Australia Foundation partners with indigenous young people inschools and universities with a sustainable employment strategy.

POLICIES

BusinessCCA has developed a robust framework of policies and management systems.

Key governance policies are at http://www.ccamatil.com under About CCA – Corporate Governance, and include:

Policy on Trading in CCA’s Shares

Environment Policy

Purchasing Policy

Water Policy

Code of Business Conduct Policy (behaviour required by all our employees and directors.)

Disclosure & Communications Policy

Diversity Policy

Training and awarenessAll policies are posted on the CCA intranet for all employees to access and they are included in induction andspecific relevant training programs. Where they involve legal or regulatory compliance, we are developing onlineself-paced training.

The Code of Business Conduct Policy is posted on the CCA intranet for all employees to access and included ininduction and specific relevant training programs. An online self-paced training program containing a compulsorymultiple choice test is available to ensure understanding as well as awareness.

Purchasing PolicyCCA is currently reviewing its procurement strategy with a goal of moving towards procurement guidelines whichconsider the environmental impact of the products or services that we procure and the environmental impact of thesuppliers we procure them from.

It is CCA’s preference to select suppliers which offer sustainable products and services where prices for these aremarket competitive and where there are clear benefits to CCA versus alternative offerings. Our future strategy aimsto articulate how we balance our sustainable procurement objectives through focusing on the triple bottomline – environmental, economic and social.

CCA is currently guided by CCA’s Purchasing Policy (www.ccamatil.com) and The Coca-Cola Company’s (TCCC)Supplier Guiding Principles.

CCA's suppliers must comply with TCCC’s authorised supplier program. The program is described in the TCCCSupplier Guiding Principles, supported by the Supplier Guiding Principles Overview, KORE (Coca-Cola Operating

Requirements) and The Supplier Guiding Principles Implementation Guide. http://www.thecoca-colacompany.com/citizenship/supplier_guiding_principles.html

These are TCCC’s social compliance guidelines which state that all suppliers to TCCC will comply with local law,including in respect of collective bargaining, wages and benefits, working hours and overtime, safe workingconditions and the environment.

SPC ArdmonaSPC Ardmona suppliers who supply fresh fruit and vegetable raw materials must adhere to SPC Ardmona’sApproved Supplier Program. All suppliers must have current accreditation to a third party audited Hazard AnalysisCritical Control Point (HACCP) based food safety and quality management system, must have completed anAgricultural Chemical Use Warranty and a genetically modified organism (GMO) Statement. (HACCP is asystematic preventive approach to food safety and pharmaceutical safety that addresses physical, chemical, andbiological hazards as a means of prevention rather than finished product inspection.)

Only suppliers accredited to both the Food Safety and Environmental standards will be able to apply to supply rawmaterials to SPCA in 2012.

All SPC Ardmona suppliers who supply ingredients and packaging must comply with SPC Ardmona’s VendorAssurance Process and complete a Production Information Form prior to supply.

GOVERNANCEAt CCA, the Board of Directors is committed to achieving the highest standards in the areas of corporategovernance and business conduct. The corporate governance principles and practices followed by CCA,established in the ASX Corporate Governance Council’s “Principles of Good Corporate Governance andRecommendations, 2nd Edition” can be found in our Annual Reports and under Corporate Governance(www.ccamatil.com).

BOARD DIRECTORSIn 2010 CCA’s Board consisted of nine members – eight non-executive directors and one executive director. In2010 they were David Gonski AC (Chairman, an independent non-executive director); Jillian Broadbent, CatherineBrenner, Wal King AO, David Meiklejohn AM and Tony Froggatt (all independent non-executive directors); MartinJansen and Geoffrey Kelly (TCCC’s nominees and non-executive directors) and Terry Davis (CCA’s Group MD andan executive director). Jillian Broadbent retired on 31 December 2010 and was replaced by Ilana Atlas on 23February 2011.

For a full overview of CCA’s corporate governance principles, including Senior Executives’ performance evaluation,Director selection, independence, induction and performance evaluation, Code of Conduct, and CCA’s Policy onTrading in CCA shares, share ownership and dealings, see our 2010 Annual Report www.ccamatil.com.

In 2010 there were no significant shareholder disputes or controversies over executive remuneration.

BOARD COMMITTEESTo assist its deliberations, the Board has established five main committees, which apart from routine matters, actprimarily in a review or advisory capacity. These are:

Related Party

Nominations

Audit & Risk

Compensation

Compliance & Social Responsibility

COMPLIANCE AND SOCIAL RESPONSIBILITY COMMITTEECCA’s sustainability agenda is driven from the top of the company. The Board’s Compliance and SocialResponsibility Committee,which comprises at least three Non-Executive Directors, assists the Board in determining

whether the systems of control, which management has established, effectively safeguard against contraventions ofthe Company’s statutory responsibilities and to ensure there are policies and controls to protect the Company’sreputation as a responsible corporate citizen. The Committee regularly reviews and reports to the Board on compliance with laws including OHS, environmentalprotection, product safety and trade practices. The Committee also reviews policies reflecting on the Company’sreputation, including quality standards, dealing in the Company’s securities and disclosure. The Committee approves key sustainability metrics under our four pillars – Environment, Marketplace, Workplaceand Community. Each quarter, the Group reports to the Committee on compliance with relevant laws, includingoccupational health and safety, environmental protection, product safety and trade practices. The Committeereviews policies and reports and makes recommendations to the Board, where appropriate, on quality standards,political donations, community sponsorship and support and relevant social issues such as obesity, environmentallysustainable initiatives and other social issues that may be relevant to the Company.

POLITICAL DONATIONSCCA supports Australia’s democratic process in a bipartisan way and donates even-handedly to the major politicalparties in Australia – the Liberal/National Party coalition and the Australian Labor Party – in both State and Federalarenas. All donations are disclosed on www.aec.gov.au.

ENSURING COMPLIANCECCA’s Internal Audit and Third Parties conduct regular independent reviews on our Quality, Environmental andSafety frameworks. Internal Audit is co-sourced with Price Waterhouse Coopers (PWC) and Third Party audits areconducted by LRQA (Lloyds Register Quality Assurance) and other Third Party specialists when required.

These reviews not only focus on compliance with laws, regulations and our own high internal standards, but ensuresystems are stress tested against rare events by running regular business continuity simulations.

In 2010 CCA conducted a Business Continuity Simulation using the scenario of a loss of a major production facilityand in 2011 the scenario tested was Malicious Product Tampering. Both exercises tested a wide range of CCAsystems, involved third parties such as the media and law enforcement agencies and provided an excellentplatform for process improvement.

INTERNAL AND EXTERNAL STANDARDSCCA’s environmental risk management and climate change response is supported by the maintenance of our ISO14001:2004 certified environmental management systems (EMS). These are in place across the Group for keybeverage manufacturing operations with a specific emphasis on continual improvement. See www.iso.org.

The Australian, New Zealand, Indonesian and Fijian beverage operations along with all Neverfail water bottlingoperations are all ISO 14001 certified.

All of CCA’s major production operations in Australia, New Zealand and Fiji are certified to ISO 9001 and FSSC22000 (ISO22000:PAS220) with Neverfail preparing for FSSC22000 certification in 2012. All Neverfail operationsare currently HACCP certified. All of CCA Australia’s water bottling operations, including Neverfail are also ABWI(Australasian Bottled Water Institute) accredited.

Five of the eight manufacturing sites in Indonesia are ISO9001 certified with the Bali plant undertaking anassessment plan in November 2011. The Cibitung plant is also FSSC2200 certified and another two plants are alsopreparing certification plans in late 2011. Papua New Guinea does not currently hold any ISO accreditation.Note: Food Safety System (FSSC) Certification 22000 standard meets the requirements of the Global Food SafetyInitiative (GFSI), which is the most influential interest group for food retail companies, referencewww.fssc22000.com and www.mygfsi.com.

All of CCA’s Indonesian plants are certified to SMK3, a local Indonesian Government safety certification.

BREACHESEnvironmental breaches are graded according to their type, and if required, are reported to the relevant agency (theEnvironmental Protection Agency, or EPA, in Australia). They are also reported to the CCA Board every quarter.

In 2010 and 2011 there were a number of trade waste agreements breaches in Australia, however none resulted inregulatory penalties. They have required effluent improvement plans (EIP) to be developed and implemented.

SAFETY SYSTEMS - VERIFICATIONThird party audit and verification of our integrated management systems (Quality, Environment and Safety) iscurrently performed by LRQA (Lloyds Register Quality Assurance) which audits against FSSC22000 (ISO22000:PAS220) Food Safety, ISO9001 Quality and ISO14001 Environment and The Coca-Cola Company’s KORErequirements which incorporates safety in addition to the aforementioned.

PRODUCT LABELLINGWe meet all regulatory standards and comply with the Australian New Zealand Food Standards code. We arecommitted to clear labelling of ingredients, nutritional content and country of origin.

To help our consumers make more informed choices we voluntarily introduced the Australian Food and GroceryCouncil’s Daily Intake (%DI) Guide in a “thumbnail” format on the front of pack of our beverages in Australia andNew Zealand. The %DI is a guide for energy intake, as set out by the National Health and Medical researchCouncil. The thumbnail label also indicates the number of kilojoules contained in the beverage per serve.

PRODUCT QUALITYWe aim to provide customers and consumers with the highest quality beverages and food, and it is our policy tomeet or exceed regulatory requirements.

In manufacturing, CCA relies on policies and procedures, robust management systems and proven technologiesalong with trained people to ensure that our products exceed all company standards and legal requirements prior toleaving our facilities.

Age of stock in the market and process variability during manufacturing are our top product quality concerns. Afocus on process control, through the introduction of on-line process control and monitoring systems and theintroduction of the “Coke Best Fresh” program were key components of the strategy introduced to improve thequality of our products. The “Coke Best Fresh” program recognises that handling and storage of our products aftermanufacture can impact on their quality and ultimately influence the experience our customers have.

Quality data across the Group is reported quarterly to the CCA Board.

CONSUMER CONTACTSAll consumer contacts are logged with the Consumer Information Centre (CIC) and the CIC responds in detail, byphone, email or in writing, to all consumer inquiries within 24 hours or the next business day where possible.

In Australia in 2010 there were 71,650 consumer contacts of which approximately 15% were product quality related.This represents 3.31 product quality complaints per million units sold.

REPORTINGCCA regularly participates in independent surveys, which assess our commitment to environmental, social andcommunity initiatives.

VOLUNTARY

Carbon Disclosure ProjectThe Carbon Disclosure Project (CDP) provides a secretariat for the world's largest institutional investorcollaboration on the business implications of climate change. Through the CDP, many institutional investorscollectively sign a single global request for disclosure of information on Greenhouse Gas Emissions.

In 2006, CCA Australia voluntarily participated in the CDP for the first time and we have participated every yearsince then. To visit the CDP go to www.cdproject.net

In 2011, CCA completed the CDP Water assessment which was introduced in 2011.

CDP Report 2010

The 2010 Carbon Disclosure Project (CDP) Report, CCA was identified in the ASX200 and NZX50 CarbonDisclosure Leadership Index for the fourth year in a row. CCA was in the top-third of Australian and NZ companieswhich disclose carbon use and the high score is based on strong understanding and management of climatechange risks; strategic focus and commitment to understanding business risks of climate change; ability to measureand manage the company’s carbon footprint and relevant and regular disclosure to key stakeholders.

For more detail on CCA’s reported carbon emissions and energy use, please view the Carbon Disclosure Project onwww.cdproject.net and also results of mandatory reporting under NGER Act at www.climatechange.gov.au.

SAM (formerly Dow Jones) Sustainability IndexLaunched in 1999, the SAM Sustainability Index was the first global index to track the financial performance of theleading sustainability-driven companies worldwide. The index assesses leading companies based on a set ofeconomic, environmental and social criteria.

CCA has been included in the portfolio of sustainable companies since 2002. Despite the fact that CCA increasedits scores in 2011 over 2010 (Economic: 58 (2011), higher than 45 (2010); Environment: 63 (2011) higher than 45(2010) and Social: 61 (2010) higher than 49 (2010) we did not reach the benchmark for inclusion in the 2011 Index.

MANDATORY

Energy Efficiency Opportunities Assessment & Reporting Schedule and AnnualReportingThe program encourages large energy-using businesses to develop greater energy efficiency through improving theidentification, evaluation and implementation of cost effective energy savings opportunities. All CCA operations inAustralia and NZ have undergone an EEO level 3 and level 2 energy audits respectively.

CCA completed its first five year cycle of the EEO program in 2011 and is continuing to seek new energy efficiencyopportunities in cycle two which began in July 2011.

To find out more about EEO please visit www.energyefficiencyopportunities.com.au.

The National Greenhouse and Energy Reporting SchemeUnder the National Greenhouse and Energy Reporting Act (2007), CCA reports Scope 1 GHG emissions (directemissions, or the release of GHG into the atmosphere because of activities at a facility), Scope 2 GHG emissions(indirect emissions, or the release of GHG at a facility because of energy consumption used in heating, cooling etc)and total energy production and consumption.

CCA’s reporting scope was determined with input and advice from legal firm Blake Dawson for the first year ofreporting in 2008/09 and letter of advice was provided by Blake Dawson advising that the conclusions reached byCCA are reasonable. This scope remained unchanged for 2009/10.

To find out more about NGERS go to http://www.climatechange.gov.au.

National Pollutant Inventory (NPI) – Australian state government programThe NPI provides the community, industry and government with free information about substance emissions inAustralia. The NPI shows emissions estimates of 93 toxic substances and the source and location of theseemissions. CCA has been fulfilling its mandatory reporting obligations in this area since 1999. To find out moreplease visit www.npi.gov.au.

Australian (formerly National) Packaging CovenantCCA was a founding member of the Australian Packaging Covenant when it was the National Packaging Covenant(NPC), a joint initiative set up in 1999 between government and industry to manage the environmental impacts ofconsumer packaging. CCA submits an Action Plan report to the APC every year.

In 2011 participating companies were required to submit their second five-year action plan under the Covenant. Thefirst progress report against this plan will be submitted in March 2012.

For further information see www.packagingcovenant.org.au.

CCA is also a signatory to the Packaging Accord in New Zealand, where we have joined forces with government,

industry, waste management and other non-government organisations as members of the Accord.

OUR APPROACHEngaging with our stakeholders – the millions of people who affect our business or who are touched by it – isfundamental to the way we do business across our Group.

CCA’s stakeholders include consumers, customers, employees, shareholders, suppliers and local communities, aswell as non-government organisations and other groups which have an interest in the products we make and sell.These include health and environment organisations, water experts, regulators, bureaucrats and local, state andfederal governments.

MANAGEMENTWe use many avenues to engage and communicate with our stakeholders and listen to their advice and feedback.One of the most important public engagement opportunities with our stakeholders is our Annual General Meeting(AGM), which is held in May each year in Sydney. All of our shareholders are invited to attend and ask questions ofthe Board, either directly or through the Australian Shareholders Association.

We are members of many different industry and policy-building organisations across the Group, including theAustralian Food and Grocery Council, the Australian Packaging Covenant, DrinkWise Australia , the AustralianBeverages Council, the Australia Indonesia Business Council, New Zealand’s Packaging Council, the NZ Food andGrocery Council, Keep NZ Beautiful, the NZ Business Council for Sustainable Development, the EnvironmentalBeverage Action Group – Glass Packaging Forum, the NZ Juice and Beverage Association and in Indonesia, theSoft Drink Industry Association, the Food Communication Forum, the Coalition of Food and Beverage Producers ofIndonesia and the Coalition of Indonesia Philanthropy.

2010 STAKEHOLDER ENGAGEMENT

CONSUMERS: 270 million peopleConsumer insight is at the core of everything the Coca-Cola System does in the Australian market. To engage withconsumers, we tap into traditional and emerging consumer forums including Facebook sites, CCA Clubhouse,Twitter and blogs, and the Consumer Information Centre (CIC).

Other consumer information is on the myCCA, CCA and TCCC company websites, consumer hotlines; 1800 025123 on product labels, 13 COKE and dietary information (%DI) on product labels.

The CIC responds in detail, by phone, email or in writing, to all consumer inquiries within 24 hours or the nextbusiness day where possible. Consumer information is delivered to the business and shared with the globalCoca-Cola System via regular monthly reporting. CIC: free call 1800 025 123; fax 02 9436 8715 or via email toconsumer_information@anz.ccamatil.com.

Consumer complaints for the Group are reported to the CCA Board’s Compliance and Social ResponsibilityCommittee every quarter.

In Australia in 2010 there were 71,650 consumer contacts of which approximately 15% were product quality related.This represents 3.31 product quality complaints per million units sold.

In New Zealand in 2010 there were 11,601 consumer contacts of which approximately 32% were product qualityrelated. This represents 7.4 product quality complaints per million units sold.

CUSTOMERS: approximately 600,000Our customers range from the smallest street drinks cart in Java to the largest supermarket in Sydney, with a hugerange of food , convenience and petrol stores and hotels, pubs, clubs and restaurants in between.

CCA places excellent customer service as our highest goal and we seek every day to be the most valued supplierwe can be. We hold regular customer events, including an annual brand experience week, as well as brand

launches, which included the 2010 opening festivities for our Bluetongue Brewery, and which are attended by1000s of our customers.

CCA responds to both customers and consumers in Australia through the National Customer Centre (13COKE(132653) and online at www.mycca.com.au. In 2011 CCA developed an award-winning new application for onlinepurchasing “myCCA On the Move”.

The team, of more than 354 employees, covers 24 hours a day, seven days a week. All calls from customers arelogged and monthly reports are produced and distributed through the business.

CCA’s OAisys $65 million technology platform roll-out will include the expansion of the customer relationshipmanagement system in Australia in 2011 and 2012.

SHAREHOLDERS: 53,486 shareholders (as at October 2011)Environmental, social and governance performance is regularly communicated to our investors, through Resultspresentations; reports, the AGM. CCA also engages with analysts both seeking and reporting on ESG measures ofthe Company. We contribute information about carbon emissions to the largest global ratings project, the CarbonDisclosure Project (CDP).

CCA’s shareholders are encouraged to make their views known and to directly raise matters of concern.Shareholders are encouraged to attend CCA’s AGM and to ask questions, which can be submitted by completingthe form accompanying the notice of meeting or by emailing CCA at aus_investor_relations@ anz.ccamatil.com.The questions and their answers are posted on the Company’s website.

CCA’s communication policy (available at www.ccamatil.com) requires that shareholders be informed aboutstrategic objectives and major developments. CCA is committed to keeping shareholders informed and improvingaccessibility to shareholders through: Australian Securities Exchange (ASX) announcements; company publications(including the Annual Report and Shareholder Review); the AGM, the company website (www.ccamatil.com); theinvestor relations contact number (61 2 9259 6159); and a suggestion box on the website.

In 2010 there were no significant shareholder disputes or controversies over executive remuneration.

EMPLOYEES: approximately 15,000 staffAcross the Group we communicate with our employees via a wide range of internal delivery systems including theintranet, newsletters, DVDs and emails, as well as conducting employee engagement surveys and holding longservice award ceremonies, internal achievement awards and business road shows. In Australia CCA produces dailyintranet news stories and CCA News; holds regular social events and provides opportunities for volunteering anddonating to charities.

CCA Australia and New Zealand conduct the annual “Sustainability September” employee engagement program,where all staff can participate in sustainability events like collection of e-waste, recycling and tree-planting at ouroperations.

In our developing markets we drive many employee health strategies – in Papua New Guinea, we give out freemosquito nets to our staff, and malaria incidence continues to fall every year. In Indonesia, we conduct free healthclinics for our staff and their families in their communities.

Our annual Innov8 Awards gives all staff the chance to compete for the best innovation ideas. Launched in 2007through the Supply Chain division, Innov8 received 97 nominations – and in 2010 there were 3000 nominationscoming in from our people across the business.

Where CCA regularly measures employee engagement in Australia, NZ and at SPC Ardmona, scores rose from2009- – 2010 across the board.

SUPPLIERS: approximately 15,000CCA is currently reviewing its procurement strategy with a goal of moving towards procurement guidelines whichconsider the environmental impact of the products or services that we procure and the environmental impact of thesuppliers we procure them from.

It is CCA’s preference to select suppliers which offer sustainable products and services where prices for these aremarket competitive and where there are clear benefits to CCA versus alternative offerings. Our future strategy aimsto articulate how we balance our sustainable procurement objectives through focusing on Environmental, Economic

and Social issues.

We are guided by a number of supplier policies, including CCA’s Purchasing Policy (www.ccamatil.com) and TheCoca-Cola Company’s (TCCC) Supplier Guiding Principles.

CCAs suppliers must comply with TCCC’s authorised supplier program. The program is described in the TCCCSupplier Guiding Principles, supported by the Supplier Guiding Principles Overview, KORE (Coca-Cola OperatingRequirements) and The Supplier Guiding Principles Implementation Guide. http://www.thecoca-colacompany.com/citizenship/supplier_guiding_principles.html)

These are TCCC’s social compliance guidelines which state that all suppliers to TCCC will comply with local law,including in respect of collective bargaining, wages and benefits, working hours and overtime, safe workingconditions and the environment.

In 2010 we took an important step to better engage with our suppliers – and introduced CCA’s inaugural Supplier ofthe Year Award, which is held annually.

We also work closely with state-based water authorities in Australia to ensure our compliance and best practice inthe mandatory water management programs.

COMMUNITIESWe engage with our communities through a wide range of projects and events, many of them centred onenvironmental sustainability. We are also one of the first businesses delivering food and beverages into disasterareas, mostly supplying fresh bottled water and food to victims and volunteers. In 2011 we supplied 85,000 kg ofSPC Ardmona fruit and vegetables and approximately 1 million bottles of spring water to the victims of theQueensland floods and the Christchurch earthquakes.

In sourcing ground water, CCA undertakes a stringent Source Vulnerability Assessment of all sites, and a crucialpart of the process is consultation and communication with local communities.

In Indonesia CCA has instigated a raft of community engagement including the daily Bali beaches clean up, and theinaugural Big Bali Eco-Weekend in July 2011.

GOVERNMENTSCCA engages directly and regularly with all levels of government and bureaucracies on many issues across theGroup. The Coca-Cola System in Australia (CCA and Coca-Cola South Pacific) makes submissions to variousProductivity Commission, Senate and Government inquiries.

CCA in Australia and New Zealand also engages with politicians and bureaucrats via several industryorganisations, including the Australian Food and Grocery Council and the Australian Beverages Council. CCA isalso represented on some of these bodies, including the Australian Packaging Covenant Industry Association.

CCA Indonesia also engages with political leaders across the board, most particularly at the local governor level.

In Australia, CCA donates in a bipartisan, even-handed manner to the major political parties to demonstrate oursupport of the democratic process. All our donations are available to view on the Australian Electoral Commissionwebsite www.aec.gov.au.

NON-GOVERNMENT ORGANISATIONS (NGOs)We maintain a wide range of relationships with NGOs and educational, environmental, community and charitygroups right across our business, working on a number of projects including environmental excellence in ourworkplaces, health and fitness surveys of our staff, recycling and beverage container recovery projects.

The Coca-Cola System engages with many organisations across a broad spectrum, including from the GreenBuilding Council of Australia, the World Wildlife Fund, universities, the Australian Indigenous Mentoring Experience,Yarn’n, UNESCO in Indonesia, the National AIDS Council in PNG, Keep Australia Beautiful and Keep New ZealandBeautiful.

PRIORITY AREA TARGETS BASELINE 2010 PROGRESS FUTURE GOALS

WATERSTEWARDSHIP

1.31L/FBL 1.64L/FBL (2008) 1.52L/FBL Improve plant waterefficiency

Maintain 100% compliancewith our Quality andEnvironmental ManagementSystems for groundwatersources, taking intoconsideration thehydrogeological aspects ofeach source, their zones ofinfluence, sustainability anduse

100% 100% 100%

ENERGY ANDCLIMATE

Improve plant energyefficiency

0.34MJ/FBL (2008) 0.30MJ/FBL

Improve the energyperformance of CCA’s base2-door coolers

11.75 kWh/day (2008) 8.97 kWh/day

PACKAGINGAND RECYCLING

Reduce PET material use 40,000 MT 37,000 MT

Beverage industry torecover increased % ofbottles and cans in themarket

52% (2010)

Reduce landfill waste frombottling plants

1,034T (2008) 960.2T

WORKPLACE

Gender balance targets forCCA Board, seniorexecutives, managers andemployees will be set byearly 2012 across the Groupand detailed in CCA’sDiversity Report released inApril 2012

In 2010 the overallproportion of females withinCCA Australia was at 28%of total employees (which isalso a reflection of themanagers who are female)

Adopted the ASX CorporateGovernance Council’srecommendations on genderdiversity; established aGender Diversity Policy

Continue to developgender diversity across theGroup with targets set toachieve improvements in athree and five year timehorizon

150 Indigenous Australiansengaged by CCA Australia

Signed AustralianEmployment Covenant,established the CCAIndigenous Working Group

Integrate IndigenousStrategy through hiring, the Coca-Cola AustralianFoundation partners andCCA’s RemoteCommunities Strategy

MARKETPLACEContinue to expandbeverage and food rangeand offer consumers a widevariety of choice in products,energy and portion sizes

Introduced two more lowkilojoule options -GLACEAUvitaminwater lowcalorie and Mother Low Carb.

Since 2003, achieved 10.8%reduction in averagecalories/100ml of CCAbeverages sold.

Since 2003 increased percapita consumption of springwater and diet sparklingbeverages by 20%

Continue to offerconsumers choice inpackaging and portionsizes for beverages andfood options; and continueto educate them on therole choices can play insensible balanced dietsand active healthylifestyles

COMMUNITYContinue commitment tofund the Coca-ColaAustralia Foundation atleast $1 million annually

Involved local CCA managerswith community grantprogram

Aim for communityinvestment of 1% pre-taxGroup profit

Company matchedworkplace giving to reach 10% of CCA Australia staff through Thirst For Givingworkplace giving program

Approximately 5% of staffgave to Thirst for Giving

Continue to createawareness of Thirst forGiving program andincrease staff commitment

SUPPLY CHAINProcurement guidelines thatconsider the environmentalimpact of the goods andservices that we buy

Current procurement policy Reviewing procurementstrategy

Developing a sourcingstrategy that balancesenvironmental, social andeconomic considerations

WATER STEWARDSHIP

OUR APPROACHThe efficient use of water – the primary ingredient in our beverages, and also used in our manufacturing processes – is amajor focus for sustainable practices throughout CCA’s Group operations.

CCA Australia – our biggest market – has a Water Policy which covers all aspects of water related operations andactivities from both municipal and groundwater sources across our beverages and food business.

The CCA Environmental Policy (Australia) and Environmental Management System (EMS) are also utilised as tools toguide continuous improvements in the efficient use of water in our production facilities.

Since 2005 CCA has set annual water efficiency targets across the Group. Our targets are measured as litres of waterused per finished beverage litre, and takes into account all the water used in every facility.

Projects for reducing water use in 2010 and 2011 include bottle self-manufacture, or “blow-fill”, water reuse and recycling,and rainwater harvesting.

EXCELLENT WATER EFFICIENCIES CONTINUECCA Australia is one of the most efficient water users in the global Coca-Cola System, and in 2010 continued the trend ofincreasing water efficiency – achieving a water use ratio of 1.52 L/FBL.

Water efficiency in CCA Australia’s bottled spring water business continues its excellent results, with 2010 achievementsof 1.24L/FBL (Neverfail Spring Water).

CCA Australia’s water efficiencies in 2010 and 2011 have continued the “decoupling” trend which began in 2009, in otherwords, while the volume of beverages produced has increased significantly, the total amount of water used to make thebeverages has dropped. This demonstrates a “decoupling” effect between product volume increases and the amount ofwater used, in absolute terms.

This has occurred because of our onsite efficiency focus and the implementation of blow-fill production lines in Sydney in2011 which delivered an 8% improvement in the water efficiency at the site. Further water efficiency gains are expected tofollow with the commissioning of blow-fill lines in Victoria and South Australia in 2011.

Saving water not only reduces costs – purchase, treatment and disposal costs – but brings benefits to our communities,reducing consumption of a natural resource, reducing demand for energy and chemicals and creating a more sustainableenvironment.

Saving water in our operations means we also reduce greenhouse gas emissions – by decreasing our energy demandsfor pumping and treating water and wastewater.

CCA’s focus on water sustainability has seen the establishment of its National; Water Scholarship. In 2010 CCA ran thescholarship program through the National Centre for Groundwater Research and Training.

GOVERNANCEQuarterly water use ratios across the Group are reported to the Compliance and Social Responsibility Committee of theBoard.

CCA has a public Environment Policy (www.ccamatil.com) which governs the Environment Management System andwater management system, and a Water Policy (Australia) which governs sustainable management of groundwater usedfor bottled spring water.

BREACHESEnvironmental breaches are graded according to their type, and if required, are reported to the relevant agency (theEnvironmental Protection Agency, or EPA, in Australia). They are also reported to the CCA Board every quarter.

In 2010 and 2011 there were a number of trade waste agreement breaches in Australia, however none resulted inregulatory penalties. They have required effluent improvement plans (EIP) to be developed and implemented. CCA hasinvested in two EIPs in NSW and WA.

MANAGEMENTCCA Australia has annual national and facility-based KPIs and targets for water efficiency. All supply chain team leadersand managers have water use/management as a KPI in performance plans.

Each state in Australia competes for the annual "State of the Nation Award" based on business performance, includingwater as a KPI for environment.

Our programs in every state rely on a close working relationship with water suppliers and agencies and CCA’s leadershipin water saving has resulted in awards and commendations from water authorities across Australia.

BENCHMARKINGCCA measures beverage production as the number of litres of water used to produce one litre of finished beverage(L/FBL). This is a calculation of all water used onsite at beverage manufacturing and warehousing sites, from the water inthe beverages, to the water used in onsite bathrooms and in grounds maintenance, to rinsing bottles and washing downtrucks.

In 2009 CCA Australia’s water use ratio was 1.57 L/FBL, which was just below the target of 1.58 L/FBL.

In 2010, CCA Australia’s water use continued to greater efficiency, with Australian beverages reaching 1.52 L/FBL (beatingthe target of 1.56 L/FBL).

These results for CCA Australia are one of the best, if not the best, in the global Coca-Cola System, where the averageratio is 2.26 L/FBL in 2010. The ratio in North West Europe is 1.55 L/FBL, 1.69 L/FBL in the US and 1.79 L/FBL in thegreater South Pacific region.

CARBON DISCLOSURE PROJECT (CDP) – WATERIn 2011 the CDP expanded its reporting requests to Water Disclosure and CCA’s submission included risks relating towater in the Australian business, the progress we have made in mitigating them and the opportunities available to thebusiness in this area.

CCA’s main focus in managing water related risk, whether it is quantity, quality or reliability of supply, is done throughSource Vulnerability Analyses (SVAs) and subsequent Source Water Protection Plans (SWPPs). These methodologiesensure the sustainability of supply not only to CCA but to all consumers of water within the local watershed.

While our focus is mostly in the efficient use of water in our operations we have also undertaken several projects in rainwater harvesting and alternate technology trialling air rinsing of cans as an alternative to traditional water rinsing.

EMPOWERING EMPLOYEES TO MAKE CHANGE – AUSTRALIAImplementing projects big and small in our plants improves water efficiency. We deploy a multi-layered approach to ensureideas can be acted upon and resourced.

INNOV8 – LOCAL INNOVATIONCCA Australia established a national innovation program called Innov8 In 2007 to foster and implement new ideascaptured from our full workforce. To deliver this, we built a database called “Edison” for our people to swap, “steal” anddiscuss water saving ideas. Through Innov8 55 water saving projects were initiated in 2008-09.

In 2010-11 there were 162 water saving projects initiated through Edison and CCA Australia identified water savingsprojects in every state which has the potential to save more than 200 ML annually.

In 2010-11 the main focus areas included:

Capture and recycle of ‘clean’ water sources (backwash of carbon filters, hot CIP of water lines, nano-filters)1.

Rinser optimisation: first step capturing and recycling rinser water, second step evaluating of can air rinsers2.

CIP optimisation including washout matrices and final rinse capture for use as pre-rinse3.

Sub-Metering – “managing what we can measure”4.

Evaluation of current water treatment process; in particular the need for continuous multibarrier water treatment5.

approach if incoming water is compliant with TCCC requirement (evaluation of Nanofiltration, flocculation process)

Water Leak Detection Program6.

LOCAL ENGAGEMENT AND EDUCATIONEach Australian state in our business competes for the Australian Managing Director’s annual State of the Nation Awardbased on business performance in people, environment, customer service and results. The importance of water isdemonstrated by its inclusion as the KPI for environment, assessed quarterly by a balanced scorecard and reported backto the sites by the Managing Director.

WASTEWATER TREATMENTOur operations are subject to TCCC requirements on wastewater treatment, which states that all wastewater dischargedwill meet applicable regulatory requirements, maintain an effluent quality that will have no adverse effects on fish oraquatic life in receiving waters and to maintain and operate treatment facilities efficiently.

CCA Australia’s beverages plants meet the TCCC requirements.

All CCA Australia’s manufacturing operations discharge only to government or privately operated treatment facilities whichthe treat wastewater to primary, secondary or tertiary level before discharge. Each facility is licensed by the receivingcorporation to discharge wastewater with limitations on both quantity and quality of discharge so as not to affect thereceiving corporation’s ability to treat the wastewater before final discharge. Individual CCA sites in Australia treatwastewater on-site to differing levels depending on the requirements of the receiving facility.

BOTTLED SPRING WATERIn the past few years in Australia in particular there has been criticism of bottled water, which we believe to be misplaced.

CCA Australia is a major producer of bottled water brands including Mount Franklin, Neverfail Springwater, Peats Ridgeand Pump. In Indonesia we produce Ades water and in New Zealand Kiwi Blue and Pump.

Spring Water SourcesCCA’s use of groundwater for water bottling is sustainably managed through hydrogeological assessment prior to anywithdrawal commencing and continuous monitoring at the source during withdrawal.

Since 2008 CCA has been performing Source Vulnerability Analysis (SVA) on all its groundwater sources to ensure theyare sustainably managed. The outcome of each SVA is a site specific Source Water Protection Plan which considersquantity and quality aspects of the source in relation to the entire aquifer recharge area and the local community in whichit is located. Through this process CCA can ensure that both its business requirements and community needs can becontinuously and sustainably met.

CCA is committed to ensuring the sustainability of all our spring water sources under our Water Policy(www.ccamatil.com). CCA has invested $8 million into infrastructure, expert hydrogeologists and technology to ensure ourwater sources are sustainably managed. Every potential water source undergoes a stringent hydrogeological assessmentprocess.

CCA purchases most of our spring water from farmers and landowners who hold water licences, and who sell it to us onthe open market, just as they would sell any other crop.

Spring Water UseEach year the total bottled water industry in Australia uses approximately 600 million litres (or megalitres - ML) of watersourced primarily from underground springs and aquifers. To put this in perspective, the total amount of water used inMelbourne is 1200 megalitres per day. In other words, in one year the entire bottled water industry in Australia uses half ofthe volume of water that Melbourne uses in just one day.

The groundwater or spring water used to supply the total bottled water industry in Australia is estimated to be just under0.01 per cent of the groundwater allocated for use in Australia each year (Source: ABWI). The mining and agriculturalindustries are the biggest users of the groundwater allocation. Water efficiency in CCA Australia’s bottled spring water business continues its excellent results, with 2010 achievementsof 1.24L/FBL (Neverfail Spring Water).

Quality and PurityAll of CCA’s water brands contain groundwater, or spring water, none of them contain tap water.

CCA invests more into water quality than any other bottled water company. We are a member of the Australasian BottledWater Institute (ABWI) and our water is subjected to annual technical audits by ABWI approved auditors.

In 2009, 2010 and 2011 Mount Franklin, CCA’s premium spring water brand, achieved ABWI’s “Highest Standard ofExcellence” with more than 95% compliance (a pass mark is 70%).

ABWI defines purity in spring water as less than 250 milligrams of Total Dissolved Solids (TDS) per litre. Mount Franklinhas less than 200 mg/l of TDS. The Food Standards Code does not regulate the use of the word “pure” stating in its UserGuidelines that consumers expect a product described as “pure” to be uncontaminated and unadulterated.

Carbon FootprintCCA’s bottle self-manufacture, or “blow-fill” technology being rolled out across the Group is reducing the carbon footprintof PET resin bottles. In Australia all 600ml PET bottles, including Mount Franklin Easy-Crush Bottle, are being producedwith a carbon footprint that is approximately 22% lower than those previously produced. A significant proportion of thecarbon savings is delivered from bottle redesigns which use less PET resin, the elimination of the need to transport bottlesfrom the supplier and energy savings on the production lines.

Bottled water has one of the lowest carbon footprints of any commercially produced beverage, as it is not heated, cooledor processed in any way.

Transport kilometres from water sources are also kept as low as possible. CCA sources water for its bottled waterproducts from underground water sources which are within approximately two hours drive from our bottling facilities ineach state in Australia.

PET Plastic and RecyclingWhile PET bottles make up a tiny fraction of material going into landfill in Australia – less than 0.3% – (source: PackagingStewardship Forum and Plastic and Chemical Industries Association, PACIA 2007 National Plastics Recycling survey), we

accept that as producers of bottled water, we have a responsibility to do our very best to ensure that our packaging ismanufactured using significantly less PET resin and recycled.

CCA, as an industry leader, is investing hundreds of millions of dollars in several major projects to ensure less rawmaterials are used in the manufacture of PET plastic bottles :

CCA’s $450 million investment in “blow-fill” or PET bottle self manufacture across Australia, Indonesia, New Zealandand PNG, is resulting in the “light-weighting” of PET beverage bottles, saving of 9000 tonnes of PET resin and loweringthe carbon footprint of each 600ml PET bottle by 22%.

Using “blow-fill” CCA has produced Mount Franklin Easy-Crush Bottle – the lightest 600ml spring water bottle producedin Australia which weighs 13.1 grams and has 35% less PET plastic than previous bottles.

The Coca-Cola Company’s PlantBottle PET, which is produced using up to 30% plant-based materials, is to beintroduced in Australia in 2012 for production of the 750ml Pump bottled water products. PlantBottle packaging is 100%recyclable, and unlike other plant-based plastics, it can be repeatedly recycled and reused in the same way as all PETplastic.

To ensure beverage containers are recycled on a mass scale, CCA is also investing into beverage container recyclingprograms with customers, as well as a new national bin network delivered by a new industry body in 2012.

Public Place and Customer Recycling(to view case study click here)

CCA, along with the Packaging Stewardship Forum, has also investing in several long-term, large-scale recycling projectswith some of our major customers, including Westfield, Nando’s, Oporto, Hoyts and Wet ‘N Wild. Westfield has installedbeverage recycling bins in 35 of their shopping centres across Australia, which is enabling 700 tonnes of beveragecontainers, bottles and cans, to go into recycling and not landfill.

40% of Australian bottled water is sold in 9 or 15 litre containers (like Neverfail Springwater) which are refilled 30-40times over the life of the bottle, and are fully recyclable at the end.

Bottled water – in bottles and water coolers – has the lowest environmental footprint of any commercial beverage, and the highest rate of recycling of any beverage package.

60% of Australian bottled water is sold in PET packs of varying sizes. PET in Australia has a recycling rate of 43%.(Source: PACIA)

All CCA beverage containers, including caps, are recyclable – they are not litter, but a resource that can be recycledinto a huge range of products, like textiles, carpets and furniture.

41 recycled plastic bottles represent enough energy savings to run a refrigerator for an hour. To run it for a monthrequires 1 tonne of plastics to be recycled (source: www.lgsa-plus.net Local Government Sustainable ChainPurchasing).

Case Studies

CASE STUDYBLUETONGUE BREWERYOne of the most innovative sustainability projects is the $6.5 million wastewater treatment plant at the PacificBeverages’ owned $120 million Bluetongue Brewery on the Central Coast of NSW, commissioned at the end of thefirst half of 2010. The water treatment plant utilises technologies including anaerobic (methane reactor), aerobic(membrane biological reactor) and reverse osmosis treatments to produce high quality reusable water. Thisrecycled water is channelled into the general maintenance of the brewery including wash down and cleaning,boilers, refrigeration, staff amenities, fire water top-up and landscaping.

The methane reactor converts organic content into biogas, a renewable energy source which powers one of theBrewery’s boilers. “Flash pasteurisation” and plastic and stainless steel conveyors to minimise continuous waterlubrication will further reduce water and energy use.

In the first 6 months of the brewery’s operation from July-December 2010, water efficiency was 6.43 L/FBL, whichwas above target. Whilst this was a relatively high result it included the period of initial commissioning of the plant.Since full production has begun the water efficiency of the brewery has improved significantly – to an average 3.75L/FBL and it is still improving. Bluetongue Brewery aims to achieve world’s best practice water use ratios of 2.2 to2.3 L/FBL for the beer production.

PACKAGING, RECYCLINGAND LITTER

OUR APPROACHPackaging – which plays a crucial role in ensuring the quality, safety and convenience of all our food and beverageproducts – is also providing CCA with good opportunities to reduce carbon emissions, decrease landfill and litter,and increase public rates of recycling.

While beverage packaging makes up just 3% of the waste generated in Australia (source: Packaging StewardshipForum) CCA understands the need to manage the environmental impacts associated with the full lifecycle of ourpackaging – from its creation through to disposal by consumers.

CCA Australia has adopted the Australian Packaging Covenant’s Sustainable Packaging Guidelines. We areworking at reducing the impact of our packaging at every stage of production, sales and distribution – from thedesign and manufacture of PET plastic bottles and our secondary packaging, to recycling waste from our ownfacilities, providing recycling bins to our customers for use by consumers and even investing in projects to cleanlitter from public sites, including our voluntary daily cleaning of six of Bali’s beaches and the Borobudur Temple sitein Indonesia.

CCA’s focus is on continuous reductions in the weight of our packaging to reduce the raw material, and otherassociated inputs associated with its production , such as water and energy. At the other end of the packaginglifecycle, we are focused on supporting efficient and effective means for encouraging the re-use of preciousresources used to make packaging.

In 2010 and 2011, CCA invested in two important areas which are already having an impact on the packagingfootprint of our business:

bottle self-manufacture, or “blow-fill” technology which enables CCA to make its own light-weight PET beveragebottles using significantly less raw material, PET resin

continued public place recycling projects with our major customers

GOVERNANCECCA is a founding member of the Australian (formerly National) Packaging Covenant (APC), a joint initiativeestablished in 1999 between government and industry to manage the environmental impacts of consumerpackaging, as well as highlighting the importance of packaging minimisation through the supply chain.

CCA reports annually to the APC and the responsibilities arising from its reporting requirements have fostered animportant change within CCA’s corporate culture. New processes have been established and followed, withenvironmental impacts of new products now considered under the APC Sustainable Packaging Guidelines, in theearly stages of the decision process.

CCA’s 2011-2016 Action Plan to the APC notes that there is continuous dialogue between the New ProductsDevelopment team, The Coca-Cola Company’s technical team and CCA’s environmental managers to deliveroptimal environmental capability of our packaging.

The APC has provided more than $21 million in funding since 1999 to increase packaging recycling.

The APC’s targets for national recovery rates for waste have increased from 39% in 2003 to more than 65%. Thisnext stage will build on the success of the current model by focusing on away from home recycling and betterpackaging design.

The APC encourages cross-industry collaboration on packaging and CCA is a member of several industry groups inAustralia, many of which work with CCA to deliver the commitments made to the APC.

CCA Australia is a leading member of the Packaging Stewardship Forum (PSF), (www.afgc.org.au/psf) which is adelivery organisation for industry recycling, resource recovery, litter reduction and education programs.

The PSF, which is a part of the Australian Food and Grocery Council (AFGC), is best known for its iconic “Do TheRight Thing” campaign. In 2010, 23% of local governments across Australia took the Do the Right Thing anti-littermessage to their communities.

PSF members include Australia’s major beverage companies and their packaging suppliers, Amcor, BundabergBrewed Drinks, Schweppes Australia, Coca-Cola Amatil, Golden Circle, Lion and Visy.

The PSF undertakes hundreds of recycling and litter abatement projects throughout Australia every year which canbe accessed on its website www.afgc.org.au/psf.

A CCA executive currently chairs both the National Packaging Covenant Industry Association and the PackagingStewardship Forum, and chairs the Covenant Council.

MANAGEMENTTo meet our commitments under the Australian Packaging Covenant (APC), CCA Australia has annual nationaltargets for packaging efficiency.CCA – through the PSF – is also working with the beverage and broader industry to reach national litter reductionand recycling rate targets.

As a signatory to the APC, CCA has committed to evaluating all packaging types against the SustainablePackaging Guidelines which were developed to assist Covenant signatories and others to review and optimiseconsumer packaging to make efficient use of resources and reduce environmental impact without compromisingproduct quality and safety.

The Sustainable Packaging Guidelines define ‘sustainable packaging’ as being fit-for-purpose, resource-efficient,made from low-impact materials, and reusable or recyclable at the end of its useful life. The guidelines follow thewaste hierarchy with the first step being to ask whether packaging is necessary or can be avoided. If the answer tothis first question is yes, signatories are encouraged to assess packaging based on the following strategies:

maximising water and energy efficiency

minimising materials

using recycled materials

using renewable materials

minimising the risk associated with potentially toxic and hazardous materials

using materials from responsible suppliers

designing for transport, reuse, litter reduction and consumer accessibility and

providing consumer information

PACKAGE DESIGN AND MANUFACTURE

Primary PackagingCCA is on the way to world’s best practice in lightweight PET beverage containers and closures, delivered by our$450 million investment in bottle self-manufacture (blow-fill) and manufacture of PET preforms and bottle closuresat our new Eastern Creek site.

Blow-fill is delivering against key environmental sustainability goals in packaging, energy and water savings –enabling bottles to be produced using less PET resin and with the potential for more recycled (or post-consumer)resin; reducing the use of cardboard and shrink plastic in secondary packaging; developing lighter labels that useless raw materials; and eliminating the need for a plastic liner in the closures, or caps, which are also shorter in sizeand again, manufactured using less PET resin.

Across the Group, CCA estimates that more than 9000 tonnes of PET resin will be saved per year when allproduction lines have installed blow-fill technology by 2015.

CCA Australia also continues to lightweight labels and bottles closures (caps).

Secondary PackagingCCA Australia uses the lightest weight fit-for-purpose outer weight packaging in its cardboard packaging. In 2010and 2011 this reduced cardboard volume by approximately 15% and by 2012 this reduction will stand at 20%.

Lightweighting initiatives across secondary shrink film packaging also saves more than 16 tonnes of materialannually in Australia and by 2012 shrink will be 44% lighter.

RECYCLING AND LITTERWe see packaging as a valuable resource, not as waste or litter. Every PET bottle, for example is a resource thatcan be recycled into other goods, like a pair of board shorts, a polar fleece, a carpet or a picnic table. Large homeand office spring water containers, like Neverfail Springwater’s bottles, are reused 30-40 times over their life beforethe plastic is crushed and reused in the automotive industry. The aluminium in our cans can be recycled adinfinitum.

RPET (RECYCLED PET)In 1994 we were the first company in the world to package a food-grade product using recycled content in PET.

In 2011 CCA’s beverage containers use on average 15% rPET.

As outlined in the Australian Packaging Covenant Action Plan 2011-2016, CCA will continue to investigate thepotential to increase this to 25% depending on commercial availability and viability.

In 2011 CCA Indonesia launched a full range of uniforms for many of our 7600 staff which utilised 50% rPET and50% organic cotton.

PUBLIC PLACE RECYCLING(to view case study click here)

Australian recycling rates are improving every year – since 2003 when we recycled only 39% of packaging, to62.5% in 2010, an increase of more than 1 million tonnes of recycling per year (2010 performance data from theAustralian Packaging Covenant).

CCA is joining with other industry players to fund the new expanded national public place recycling system whichwill add to our existing branded Customer Recycling Program and our support for Keep Australia Beautiful’s “Do theRight Thing – Use the Right Bin” public education program.

RECYCLING@CCACCA is continually increasing internal recycling rates of packaging waste generated in our manufacturing plants inAustralia, New Zealand, Indonesia, Fiji and PNG. All CCA manufacturing and administrative sites in Australia areequipped with recycling facilities for post-consumer packaging of paper, cardboard, PET, cans and glass.

CCA’s offices have recycling bins for paper and beverage containers and kitchens and tea-points are equipped withrecycling stations.

In 2010 CCA Australia sent 95.2% of solid waste generated to recycling, avoiding landfill, an improvement on theprevious year’s rate.

SPC ArdmonaSPCA previously sent organic waste to the Coombooma site, which was previously an Environmental ProtectionAuthority licensed site. The company has now implemented a “beneficial re-use” program where we work with localfamers to mulch the organic waste and grow crops on the land. The EPA has accepted the plan and SPCA hashanded back the license.

SPCA has installed a new processor for waste fruit which has enables us to sell a higher proportion of this organic

waste for stockfeed.

SPCA has also developed an employee education program with our waste contractor which has been rolled outthrough all operations and is used in our induction program. The focus is on waste procedures.

CONTAINER DEPOSIT LEGISLATION (CDL)The issue of Container Deposits in Australia, where the consumer pays extra for a beverage, then claims back 10cents on the container at depots, has been considered a number of times by State Government Environmentministers at the Environment Protection and Heritage Council (EPHC) over the past few years.

However, independent studies commissioned by the EPHC into the costs and benefits of CDL and other alternativeapproaches to managing packaging waste found that a national CDL scheme, with its resulting infrastructuredevelopment, would be very expensive – in fact up to $680 million a year.

A CDL scheme would also damage almost $70 million worth of successful industry-led kerbside recycling andpackaging waste programs in existence.

While CDL scheme proponents maintain that a return to the old-fashioned bottle deposit system would be popularwith the public, extensive research conducted for the Packaging Stewardship Forum of the Australian Food andGrocery Council found that the majority of survey respondents, around 70%, preferred the option of building onexisting programs, and not opting for container deposits.

CCA and the Australian Food and Grocery Council oppose a CDL scheme, because we believe that any schemewould add to the regulatory and administrative burden of the food and beverage industry; would increase costs togovernment and the community and would undermine the successful Australian Packaging Covenant.

CCA and the AFGC believe that the Australian Packaging Covenant is a more comprehensive and equitableinstrument for the management of packaging waste in Australia and that CDL schemes only address a smallcomponent of the waste stream (around 3%) and impose costs on consumers, most of whom are already doing theright thing and recycling.

CDL schemes are old fashioned and narrow and only address the end of the packaging chain. They do not addressissues like optimising packaging design and production, they don’t create markets for recovered materials currentlybeing stockpiled or sent to landfill.

CDL in the Northern TerritoryIn February 2011 the NT Government passed legislation for the introduction of CDL in January 2012.

CCA shares the NT Government’s desire to reduce litter and improve recycling rates but believe that there arebetter ways to do this which cost consumers less and cover a wider range of products than the proposed CDLscheme.

CCA has put in place arrangements to ensure we meet our obligations under the NT legislation by 3 January 2012so our products can continue to be available.

However, as stated by the Australian Food and Grocery Council earlier this year the beverage industry has receivedlegal advice that the scheme legislation conflicts with Commonwealth legislation, specifically the MutualRecognition Act. This was raised with the NT government during the preparation of the legislation and wasconsidered during the NT parliamentary debate. The AFGC raised these concerns in correspondence with theCommonwealth and State Governments in March this year.

The beverage industry has been very supportive of the National Waste Policy and the Product Stewardshiplegislation, and sees individual state or territory legislation as undermining that national approach.

The NT government has commenced the process of seeking exemption from the Commonwealth legislation.Should this process be unsuccessful the legislation will be open for challenge. At that stage industry will consider itsoptions.

Case Studies

CASE STUDYPLANTBOTTLE™

In 2012, CCA will begin to produce 750 ml PUMP bottled water using PlantBottle PET, The Coca-ColaCompany’s innovation in sustainable packaging and an alternative to fossil-fuel based PET.

PlantBottle packaging is produced using up to 30 per cent plant-based materials and is partially made byconverting the natural sugars in sugarcane into a key ingredient for making PET plastic. It is 100%recyclable, unlike other plant based plastics.

CASE STUDYSUGAR-BASED BEVERAGE BY-PRODUCT INAUSTRAL BRICKS PILOT STUDY - "BRIX FORBRICKS"

In 2010 CCA and Austral Bricks in NSW conducted a pilot R&D study with the NSW Office of Environmentand Heritage’s Sustainability Advantage program to see if sugar-based beverage by-product from our

Northmead and Smithfield beverages facilities contained the right amount of sucrose for adding to clay in aprocess that prevents scum forming on the surface of the dried and fired bricks.

Trials were carried out on small hand-made pavers at Austral Bricks which concluded that sugar-basedbeverage by-product was an effective anti-scumming agent for the brick pavers.

Further work will be carried out to see if this is a potentially valuable way for CCA to recycle and reuse thisbeverage by-product.

ENERGY AND CLIMATE

OUR APPROACHCCA is a low energy intensive business, but as one of the largest beverage and food manufacturing companies inthe Asia Pacific region, we’ve long been aware of the risks of climate change to the business, voluntarily reportingand identifying opportunities to reduce carbon emissions since 1999 in Australia under the Federal Government’sGreenhouse Challenge.

In Australia, CCA’s biggest market, the 2009 arrival of mandatory reporting of carbon emissions to the FederalGovernment, followed by the introduction of legislation for a carbon tax in late 2011, focused business attention onthe implications of the tax and increasing costs of energy use and ways to mitigate against it.

CCA production facilities represent the bulk of our direct emissions so efficiency projects within our plants are apriority. However we also recognise we have responsibility for reducing the energy use and carbon emissionsassociated with the cold drink equipment – fridges and coolers – utilised by our customers to ensure consumersreceive cold, refreshing beverages.

CCA is continuing to reduce carbon in its operations through efficiency measures.

THE MAJOR ENERGY FOCUS INCLUDES:More sustainable packaging (a) the roll out of the $450 million bottle self-manufacture, or blow-fill technologyacross the Group which is delivering significant carbon reductions in PET plastic bottles because less PET resinis used, as well as the decrease in transportation of empty bottles from suppliers and (b) the pilot in Australia ofPlantBottle, The Coca-Cola Company’s innovation in sustainable packaging, which is produced using up to 30per cent plant-based materials.

Fridge and cooler innovations which enable our customers to significantly reduce energy use and save costs,and customer engagement programs on cooler maintenance which, when maintained, can significantly reducethe amount of energy used.

The development of systems to monitor and track environmental metrics, including energy, water and wastewhich identifies areas for improvement.

Internally CCA Australia has developed innovation awards, Innov8, which are seeing hundreds of ideas forsustainability and energy and water efficiency, many of which are implemented successfully.

Externally CCA reports its carbon emissions to a number of mandatory Government agencies and voluntaryorganisations.

GOVERNANCECCA has developed business plans to manage the risks of climate change. Efficiencies in water, energy and rawmaterials are driven through the business across the Group and reported to the Compliance and SocialResponsibility Committee of the Board.

Every CCA manufacturing facility across the Group records monthly environmental metric data including energy,water and waste and various levels of management have KPIs in performance plans related to energy usage andother environmental metrics.

Target levels are set for carbon emissions each year in grams of CO per finished beverage litre, and are set duringbusiness planning processes annually.

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Various levels of management have KPIs in performance plans related to energy usage and other environmentalmetrics.

Energy Efficiency Opportunity (EEO) legislation requires CCA Australia to identify and assess energy savingopportunities with up to a four year payback across all controlling business groups using a whole of businessapproach and to an accuracy of ±30% for each identified opportunity.

CCA’s third public report under the Energy Efficiency Opportunities Act in 2010 saw the near completion and orcompletion of nearly 30% of all energy efficiency opportunities identified over the course of the program in 11 ofCCA’s major Australian manufacturing sites covering the carbonated beverages, bottled water and food andservices divisions. This has resulted in an estimated 94 TJ of energy savings per annum. Another 34% of theidentified opportunities are either scheduled for implementation or further investigation.

CCA completed its first five year cycle of the EEO program in 2011. We are undertaking energy audits ofmanufacturing sites in 2011 and 2012 and will continue to seek new energy efficiency opportunities in cycle twowhich began in July 2011. To find out more about EEO please visit www.energyefficiencyopportunities.com.au

MANAGEMENTCCA sets internal energy reduction targets (measured as MJ/FBL produced or megajoules per finished beveragelitres produced) and internal targets for reducing carbon emissions ratios across our product portfolio, which wemeasure as grams of carbon dioxide equivalent per finished beverage litres or gCO -e/FBL produced). Thesetargets are agreed internally and are an integral part of our annual business planning process.

Energy and carbon metrics for each of our manufacturing facilities (as with the other core metrics) are tracked usingadvanced monitoring technology. Results are presented to senior management on a monthly basis as a minimumas part of a Supply Chain balanced scorecard and every quarter to the CCA Board of Directors.

The scorecard performance for each state in Australia also forms the basis of a national competition for CCA’s“State of the Nation” award, where states compete against one another under the four categories of Environment,People, Customer Service and Business Results.

ENERGY USE RATIO (MJ/FBL) AND CARBON EMISSIONS RATIO AND ( CO /FBL) –CALENDAR YEAR REPORTINGAustralia:

In 2010 the energy use ratio, measured in megajoules per litre of finished beverage, of beverage production inCCA’s biggest market, Australia, was 0.28 MJ/FBL. This was 3.4% decrease over 2009.

In 2011 YTD the energy use ratio stands at 0.34MJ/FBL for Australia. The increase is partly because of thereduction in beverage volume over the cooler east coast summer period and the introduction of blow-fill.

In 2010, the CO -e emissions ratio (gCO e/FBL) for Australia was 48.1gCO e/FBL. This was a 2.6% decrease over2009.

GROUP ENERGY USED AND CARBON EMISSIONS (TOTAL IN MANUFACTURINGOPERATIONS) – CALENDAR YEAR REPORTINGIn 2010 CCA Group energy used due to our manufacturing operations was 1,757,454 GJ which was 3% increaseover 2009. This was due to the inclusion of the Bluetongue Brewery figures in 2010 (for the first time).

However on a like-to-like basis the net increase was 1.4%.

In 2010 CCA Group activities in its manufacturing operations produced an estimated total of 221,352 tonnes ofCO -e (Scope 1 and 2), representing an increase of 8.7% on 2009. This was due mainly to the increase inIndonesian operations, which contributed around 80% of the net increase.

Australian beverage operations actually showed a 3.6% decrease over the same period.

(For all other businesses, see Energy and Climate Graph)

NATIONAL GREENHOUSE ENERGY REPORTING SCHEME (NGERS) AUSTRALIA –

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FINANCIAL YEAR REPORTING 2010/11CCA Australia had a combined Scope 1 and Scope 2 emissions of more than 50,000 tonnes of carbon, thecorporation threshold for 2010/11 reporting, mandating its requirement to report energy use and carbon emissionsunder the NGERS scheme.

The scope for NGERS reporting for CCA Australia is all emissions from facilities over which we have operationalcontrol – from manufacturing and warehousing facilities, to office workplaces and small storage facilities. Fleetenergy use is also reported.

Overall CCA's Scope 1 emissions decreased 3.5% (1895 tonnes CO -e) in FY 2010/11 when compared withFY2009/10. This reduction was driven primarily by SPC Ardmona’s Scope 1 emissions decrease of 20.7% (or 5,396tonnes CO -e), offset by a change in ethanol treatment classification across all entities.

CCA’s Scope 2 emissions decreased by 6.2% (8,166 tonnes CO -e) in FT 2010/11 when compared to FY 2009/10.Again this reduction was driven primarily by shifts in SPC Ardmona manufacturing activity and reductions inelectricity use at the SPC Ardmona sites of Shepparton and Mooroopna.

FLEETWe have also measured the CO -e emissions of the fleet owned by CCA in Australia. The Australian measurementis included in our Australian Scope 1 data for NGER reporting.

In FY 2009/10, the CO -e emissions for CCA and SPCA-owned fleet was 12,724 tonnes.

In FY 2010/11 the CO -e emissions for CCA and SPCA owned fleet was 16,036 tonnes. The increase was due to achange in the treatment of ethanol fuel following clarification from the Greenhouse and Energy Data Officer(GEDO).

CARBON TAX – JULY 2012CCA Australia reports carbon emissions under the National Energy and Greenhouse Reduction Scheme (NGERS)which requires us to measure and disclose GHG emissions.

CCA Australia is a low energy intensive business and does not breach the GHG emissions threshold set by theFederal Government -- CCA’s Australian facilities are all below the 25,000 tonne Scope 1 GHG emission thresholdlegislated in the NGER Act 2010.

This means no carbon tax will be paid through CCA’s Australian operations.

However input costs for CCA along the supply chain may increase under a carbon tax as suppliers pass on highercosts. CCA intends in turn to pass on any costs associated with a carbon tax.

HOW CCA IS REDUCING CARBON

Less PET Resin in Beverage Bottles Produced by Blow-fillThe single largest capital investment in infrastructure CCA has made in a decade has resulted in the single mostsignificant reduction in carbon in our manufacturing facilities – the $450 million bottle self-manufacture, or “blow-fill”technology installed in facilities across the CCA Group – Australia, New Zealand, Indonesia and Papua NewGuinea.

The technology has enabled CCA to redesign plastic bottles using less PET resin, and this, combined with nolonger having to transport bottles from suppliers, has resulted in lowering the carbon footprint of every 600ml PETplastic beverage bottle made by 22% (source: Martina Birk – MSc Thesis “Case study – Coca-Cola Amatil,Australia: Comparison of carbon footprint converter model v blow-fill technology for PET bottles” August 2011).

This is equivalent to 1700 cars being removed from the roads every year.

Across the Group, CCA estimates that more than 9000 tonnes of PET resin will be saved per year when allproduction lines have installed blow-fill technology by 2015.

Workplace PracticesCCA Australia is identifying ways to reduce energy in our facilities and offices:

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Eliminating compressed air leaks, steam leaks and air knives

Installing pipe insulation

Reducing air pressure

Upgrading lighting

Maintaining heating, ventilation and air conditioning

Condensate return

Training employees

Controls on programming and production line energy metering

Coca-Cola Place – CCA’s Head OfficeRelocation of CCA’s Australian Head Office from Macquarie Street Circular Quay in Sydney to a new 6 Star Greenand 5 Star NABERS rated building in North Sydney. (Green Star, an initiative of the Green Building Council, is acomprehensive national voluntary environmental rating system that evaluates the environmental design andconstruction of buildings.)

The design features include:

The latest in efficient lighting and HVAC with sensor controlled illumination

Extensive natural light in the building

A tri-generation power supply and grey water recycling

Multiple bicycle racks

CCA obtained a 5-Green Star rating by the Green Building Council of Australia for the sustainable fit-out of theoffices in Coca-Cola Place.

SPC Ardmona – SheppartonFruit and juice processing requires a considerable amount of heat and water consumption to affect its transitionfrom raw ingredients to final saleable product. Within the juice plant processing of the fruit uses steam for heatingand sterilizing the product mash. Along with the processing itself a substantial CIP (or Clean In Place) regime isused to ensure the cleanliness and sanitized condition of the equipment between batches. It has been possiblethrough use of heat exchangers, water and steam condensate recovery systems to better utilize a lot of thispreviously wasted energy.

One energy project at SPC Ardmona’s Shepparton site in 2010 – 11 utilizing steam condensate recovery haseliminated the loss of 102 Megalitres (ML) of water, 19000 Gigajoules (GJ) of energy and 975 tonnes of COemissions per annum.

In 2011 SPC Ardmona participated in a Carbon Lifecycle Analysis by Sustainability Victoria and the AustralianIndustry Group targeting Australian brands manufactured in Victoria.

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TOTAL WATER USAGE 2010 (ML)

WATER USE RATIO 2010 (L/FBL)

DECOUPLING OF VOLUME GROWTH AND ABSOLUTE WATER USE 2010

TOTAL ENERGY USAGE 2010 (GJ)

ENERGY USE RATIO 2010 (MJ/FBL)

PRODUCT VOLUME, ENERGY USE AND ENERGY USE RATIO

TOTAL SCOPE 1 & 2 CO e EMISSIONS 2010 (TONNES)

CO e EMISSIONS RATIO 2010 (gCO e/FBL)

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MANUFACTURING SOLID WASTE GENERATED 2010 (TONNES)

IN PLANT SOLID WASTE RECYCLING 2010 (%)

WASTE RATIO 2010 (g/FBL)

OUR APPROACHCCA’s business success is delivered in no small way by meeting the changing tastes and needs of our millions ofconsumers across the Group. We’re responding to these needs by providing an increasingly wide choice inbeverages and food.

We understand the concern about the global obesity epidemic and we believe all stakeholders – individuals,communities, businesses and governments – need to play a role in addressing it.

There is widespread consensus that weight gain is primarily the result of an imbalance of energy-too many caloriesconsumed versus too few calories expended. Since people consume many different foods and beverages, nosingle food or beverage is responsible for people being overweight or obese. All calories count regardless ofsource, including those from our products.

MANAGEMENTAs a major producer of food and beverages in Australia, New Zealand, Indonesia, Papua New Guinea and Fiji,CCA, together with The Coca-Cola Company, responds to the needs of our consumers in the following ways:

Expanding our product range to provide a low-kilojoule or no-kilojoule option for most sugar-sweetenedbeverages

Voluntarily providing dietary intake and kilojoule information on our labels

Providing smaller portion packaging sizes in beverages and food

Ensuring our sales and marketing is conducted responsibly and adheres to The Coca-Cola Company’s policy ofnot marketing to children under 12

Working with partners to promote physical activity and healthy lifestyles in remote indigenous communities inAustralia and our own workforce

GROWTH OF LOW-KILOJOULE BEVERAGES AND SPRING WATERIn Australia sales and consumption of low-kilojoule beverages and spring water continues to grow.

In 2003 the average calories per 100ml of CCA beverages sold was 31.5 calories, in 2010 it was 28.1, a reductionof 10.8%.

As well, in the period 2003 to 2010, the per capita consumption (8oz serves per person) of Mount Franklin bottledspring water and diet sparkling beverages grew significantly – by more than 20%. In 2011 GLACÉAU vitaminwaterwas reformulated to “low calorie”, which means that it contains less than 80 kilojoules (19 calories) per 100 mL.

In 2010 we introduced Mother Low Carb energy drink.

SPC ARDMONA HEALTHY SNACKSOur SPC Ardmona food range now contains an even broader portfolio of healthy snacks based on fruit, such asSPC Fruit Crush-ups and SPC Power Pulps containing half a serve of fruit.

GRINDERS FIX ORGANIC COFFEEGrinders coffee went organic in 2010, with the addition of a blend of certified organic free-trade coffee FIX to ourtraditional Italian offerings.

NON-ALCOHOLIC BEVERAGESOur portfolio of non-alcoholic beverages consists of more than 80 options, and we are continuously responding toconsumer needs for a greater choice in beverage offerings and packaging. We now provide a sugar-free option formost sparkling drinks and produce the smallest portion size of trademark Coca-Cola brands, the 200 ml “mini” cans,which contain just 360 kilojoules.

We are committed to providing a variety of products for every lifestyle and occasion.

Our range of sugar-free, low-kilojoule and functional options, includes Diet Coke, GLACÉAU vitaminwater lowcalorie, Mother Low Carb, Kirks Sugar-Free, Coca-Cola Zero, Sprite Zero, diet Lift, Mount Franklin, Peats RidgeSprings, Pump, Neverfail Springwater and Goulburn Valley Quencher fruit juice with spring water.

GOVERNANCE

Independent Expert AdviceThe Coca-Cola System’s Coca-Cola Australia Health and Wellness Advisory Council, set up in 2004, wasexpanded in 2007 to include New Zealand experts. The Council provides independent advice on health andwellness issues, and members are selected from professional disciplines including nutrition and dietetics, medicine,dental health, public health and health and nutrition communications. Activities undertaken by the Advisory Councilinclude a review of the research around sweeteners we use in our beverages, regular reviews of productinnovation opportunities, a nutrition policy and scientific reviews of relevant health issues.

Consumer EducationIn addition to providing basic nutrition information on our products the Coca-Cola System’s sustainability website,www.livepositively.com.au, provides helpful information for consumers on the science, safety and benefits of ourbeverages and ingredients.

Useful tools such as the Nutrition Comparison Tool allows consumers to determine the kilojoule, sugar, sodium andother nutrient content of any of our beverages and compare them. We also provide a variety of brochures forconsumers and health professionals on the nutritional content of our beverages and the safety of ouringredients. (www.thecoca-colacompany.com and www.livepositively.com.au)

LabellingThe Coca-Cola System supports greater transparency on labelling, and after a global search, committed tovoluntarily implement the Australian Food and Grocery Council’s (AFGC) Daily Intake (%DI) Guide for energy, asset out by the National Health and Medical Research Council. We have rolled out %DI guide “thumbprints” andkilojoule counts on the front of our beverage labels in Australia and New Zealand.

The DI guide is effective. According to a survey of 1222 adults conducted by Newspoll for the AFGC in 2011:

78% of Australians surveyed had seen or heard of the DI guide

almost two in three Australians (64%) say the DI guide is easy to read and understand

more than half (55%) say the DI guide provided the type of nutritional information they needed to help decidewhether to buy a product

more than 1 in 3 (39%) used the DI guide to help decide whether to buy a particular product

Responsible Sales and MarketingThe Coca-Cola Company is responsible for consumer marketing and has a long-standing policy of not marketingany products to children under 12. This includes not advertising during television programs aimed at childrenirrespective of what time of day they are broadcast.(see www.thecoca-colacompany.com/citizenship/responsible_marketing.html)

We also work with our customers to ensure they understand our policies on not marketing to children.

We continue to support the role of parents as the primary custodians of what their children eat and drink. In 2004we voluntarily withdrew all sugar soft drinks from primary schools in Australia and New Zealand. In New Zealand,we led the creation of a voluntary industry agreement, in partnership with the health and education ministries, towithdraw all sugar soft drinks from the high schools that we directly supply by the end of 2009.

We also support the AFGC’s self-regulatory system, “Responsible Children’s Marketing Initiative”.

Sweetener SafetyLow and no-calorie sweeteners provide consumers with beverage options to help control and manage their energyintake.

All of the sweeteners used in our products meet strict regulatory standards. They are among the world’s mostthoroughly studied food ingredients, with hundreds of studies confirming their safety. The leading food authority inAustralia and New Zealand, Food Standards Australia and New Zealand (FSANZ), has reviewed the evidenceregarding the safety of sweeteners available in Australia and determined they are safe.

Acesulphame potassium (Ace-K) is used in approximately 90 countries, including Australia and New Zealand, andhas been subject of more than 90 studies confirming its safety. Acesulphame potassium is not metabolised by thebody, so it contributes no kilojoules.

Aspartame is one of the most thoroughly researched food ingredients in use today, with more than 200 scientificstudies confirming its safety as a low-kilojoule sweetener. It has been used around the world for more than 25 yearsand is permitted for use in more than 100 countries (including Australia and New Zealand) regard aspartame assafe. Aspartame is comprised of two amino acids which are also found in milk and meat.

Aspartame does contain phenylalanine and therefore should not be consumed by people with phenylketonuria, arare genetic condition for which all Australian babies are tested at birth.

CaffeineThe caffeine in most carbonated beverages such as Coca-Cola and diet Coke, is about one-third to one-half of thelevel found in the same amount of instant coffee, and about one-half to two-thirds of what is found in the sameamount of tea. The amount of caffeine in our energy drink Mother is equivalent to the same volume of instantcoffee. Mother energy drink carries warning labels on the packs, and where sold on tap, on illuminated fonts andspecial branded glassware, advising they are not recommended for children, pregnant or lactating women or

individuals sensitive to caffeine.

Caffeine adds a bitter taste to the complex flavour of some soft drinks, and has been used for more than 100 yearsin many recipes.

Caffeine has been approved in Australia, the US and the European Union as a safe flavour. Caffeine is one of themost studied food and beverage ingredients, with centuries of safe use. Global regulatory agencies, includingFSANZ in Australia and NZ consider the appropriate use of caffeine to be safe.

ENERGY DRINKS AND ALCOHOLEnergy drinks in Australia are among the most heavily regulated of all world markets and include regulations whichrequire limits of caffeine used in the beverage (equal to a cup of coffee for a 250 ml can); explicit warning labelsand daily usage advisory statements on the labels.

Energy drinks form a very small proportion of all sales of non-alcoholic drinks in licensed premises – less than oneper cent of total venue sales are energy drinks, of which only a proportion are mixed with alcohol. Ninety per cent ofenergy drinks are consumed before 8pm.

The Australian Beverages Council in conjunction with the Australian Hotels Association and Clubs Australia, havedeveloped a stringent set of guidelines for licensed premises which serve energy drinks as a mixer with alcohol.

TCCC’s energy drink, Mother, is available in some licensed premises for adult patrons over 18 years of age,dispensed from a tap. The caffeine warning (CAUTION CONTAINS CAFFEINE. NOT RECOMMENDED FORCHILDREN, PREGNANT OR LACTATING WOMEN AND INDIVIDUALS SENSITIVE TO CAFFEINE. USAGE: 500ml MAX DAILY) is in large font on an illuminated tap, and the drinks are available in polymer “glassware” that alsocarries the caffeine warning.

ALCOHOLCCA has been a 50:50 partner in Pacific Beverages a joint venture company with SABMiller, the global brewer,since 2007. Pacific Beverages was a relatively small player in the alcohol market in Australia and New Zealand andproduced and distributed a range of premium brands incuding Peroni Nastro Azzurro, Grolsch, Miller Genuine Draftand Bluetongue from the company’s Bluetongue Brewery, but recognised the public concern about excessconsumption of alcohol, particularly among young people.

Pacific Beverages adopted the responsibility codes created by SABMiller (see www.sabmiller.com) and is amember of DrinkWise Australia, an educational and research body set up by the alcohol industry.

CCA has a new 10 year agreement with Beam Global Spirits & Wine to produce, sell and distribute the mainproducts in the global Beam portfolio, including Jim Beam and Cola and other RTDs, Jim Beam, CourvoisierCognac, Russian Standard Vodka and Makers Mark Whiskey.

CCA will include new “drink responsibly” messaging on all RTD (ready-to-drink) alcoholic beverage labels.

PRODUCT QUALITYWe aim to provide customers and consumers with the highest quality beverages and food, and it is our policy tomeet or exceed regulatory requirements.

In manufacturing, CCA relies on policies and procedures, robust systems and proven technologies along withtrained people to ensure that our products exceed all company standards and legal requirements prior to leavingour facilities.

Excessive age of stock in the market and process variability during manufacturing are our top ongoing productquality concerns. A continual focus on process control, through the introduction of on-line process controlmonitoring systems and the introduction of the “Coke Best Fresh” program were key components of the strategyintroduced to improve the quality of our products. The “Coke Best Fresh” program recognises that handling andstorage of our products after manufacture can impact on their quality and ultimately influence the experience ourcustomers have.

PUBLIC POLICY

Volumetric Tax on Alcohol

CCA advocates a volumetric tax on alcohol. The current system of taxing alcohol in Australia is not an even playingfield – with draught beer and cask wine (which has an alcohol content of 14%) taxed at the lowest rate of 5-6 centsper standard drink; and alcoholic ready-to-drinks (ARTDs), which have an alcohol content of 5%, taxed at thehighest rate of 84 cents per standard drink.

CCA believes that the Federal Government could materially improve the efficiency and fairness of the taxation ofalcohol by flattening the rates of taxation and bringing the taxation of all alcoholic products under one system.

Australian National Preventative Health AgencyIn 2011 Federal Health Minister, the Hon. Nicola Roxon established the Australian National Preventative HealthAgency, which was the major recommendation emanating from an inquiry into Australians’ health which focused onsmoking, alcohol and obesity.

CCA actively supports the Prime Minister’s and Health Minister’s initiative to create a healthier country. We arecommitted to playing an active role in engaging with government, community, health professionals and our ownworkforce to provide constructive, effective and sustainable long-term solutions to address the problems created byobesity and alcohol abuse.

As one of the major beverage and food manufacturers in Australia, we are firmly of the view that self-regulation andgovernment/private partnerships are the only way forward and initiatives such as more taxes and regulationsrelated to obesity have proven ineffective.

As a business we are constantly reviewing our business practices and have made significant inroads to meet theneeds and expectations of the community, including the voluntary withdrawal of sugar-sweetened and caffeinatedbeverages from primary schools since 2005, the reformulation of products and the development of innovative newproducts to provide choices for consumers – such as low or no kilojoule soft drinks; and voluntarily providing clearinformation on the nutritional composition of beverages through the % Daily Intake Guide (%DI) on the front andback of packaging.

Through the Coca-Cola Foundations in Australia and Indonesia and other activities, the Coca-Cola System activelysupports many organisations which are working with young people to ensure they choose active, healthy lifestyles.

CCA is also undertaking some key workplace health and fitness initiatives to improve the lifestyles and health of ourown people.

Case Studies

CASE STUDYREMOTE COMMUNITIES STRATEGY

CCA has been developing its Remote Communities Strategy since 2006, when it was rolled out in theNorthern Territory. The Strategy is aimed at working with Indigenous store-owners to increase the availabilityand take-up of water and low kilojoule beverages by consumers.

The aim has been to increase the mix of these beverages using incentives like ranging low kilojoule (springwater and diet beverages) and functional (fruit juices) beverages in prime positions in retail outlets; in storecompetitions to promote the preferred ranges; changing “red” Coke fridges to “white” Mount Franklinbranded fridges; active promotion of bottled water; and actively engaging with leaders in the indigenouscommunities, in the health sector and with politicians.

By February 2010, the Remote Communities Strategy, a joint venture between CCA and The Coca-ColaCompany, had been rolled out into almost 100 community food stores in remote indigenous communities inthree states, the Northern Territory, Western Australia and Queensland. These partner stores includeOutback Stores, the Arnhem Land Progress Association, IBIS Queensland, Retail Stores OperationsQueensland and West Australian Buying Services.

CCA’s Far North Queensland team, working closely with key customer IBIS (Torres Strait Islander Board ofIndustry and Services) grew the proportional mix of low kilojoule beverages to 30% of all volume sales withinthe 18 IBIS stores in TI and FNQ by the end of 2010 – almost 4% higher than the Queensland state averagefor total immediate consumption stores.

The Remote Communities Strategy is supported by programs promoting health and physical activity underthe Coca-Cola Australia Foundation’s “Healthy Bodies Healthy Minds” project and the AFL.

CCA has used the images of AFL and NRL stars Michael Long and Matt Bowen on marketing material urgingconsumers to “Choose Water”.

OUR APPROACHIn all the countries in which we operate, CCAcontributes to the economic and social development of local communities and the protection of the localenvironment – both through our day to day business activities and through a raft of philanthropic contributions andcommunity programs.

In 2010, CCA contributed cash and products to the value of $5.454 million to charities, communities andcauses across the Group – representing 0.65% of Group pre-tax profit.

GOVERNANCEOur community programs are detailed in this Report and presented to the Board’s Compliance and SocialResponsibility Committee at regular intervals. CCA’s community focus includes:

Coca-Cola Foundations – established and funded in Australia and Indonesia by CCA in partnership with TCCC,and by CCA in Papua New Guinea, the Foundations are the centrepieces of our corporate philanthropy andeach year fund a range of diverse community projects, most aimed at supporting disadvantaged young people.

Workplace giving – CCA Australia and SPC Ardmona have workplace giving programs to which the Companycontributes.

Disaster Relief – CCA is a generous donor of funds, beverages and food to those in need. During the 2011Queensland floods and the Christchurch earthquakes our national fundraising efforts, matched by the Company,raised $114,000 in Australia and $22,000 in New Zealand. As well, we donated almost 1 million bottles of springwater and 80,000 kilograms of SPC Ardmona food products to the flood and earthquake victims.

Donations of Food and Beverages – CCA is a generous and long-term donor of food and beverages to charitiesand communities, with Foodbank Australia the major recipient.

Environment and Community programs – these are very well developed across the CCA Group. In Australia,most of these sit under Sustainability September@CCA, our staff sustainability engagement program. InIndonesia, a comprehensive range of innovative programs have been initiated by our business, working closelyand consistently with our communities. New Zealand also has a strong program of staff initiated environmentaland community projects.

Our Brands – our bottled spring water brands Mount Franklin “pink lids”, Deep Spring “purple lids” and Nature’sOwn “red lids” campaigns not only create consumer awareness of health issues, but also contribute significantfunds to causes like breast cancer, pancreatic cancer and HIV/AIDS prevention.

MANAGEMENTWe define community investment as supporting initiatives and partnerships that are relevant and valuable to localcommunities.

THE COCA-COLA FOUNDATIONS

The Coca-Cola Australia Foundation(www.coca-colaaustraliafoundation.com.au)Established in 2002, CCAF is an independent charitable trust funded by the Coca-Cola System in Australia (CCAand CCSP) and devoted to improving the lives of marginalised youth. It distributes $1 million annually to fund threeto four major national projects and many local community programs.

Approximately 65% funding is directed towards national grant partners and 35% into smaller local communityprojects (where grants are around $10,000 each).

The national projects supported in 2010 and 2011 are:

Beyond Empathy, a mentoring and leadership program designed to break the welfare cycle for young peoplethrough arts, multi-media and community development programs (www.beyondempathy.org.au)

AIME (Australian Indigenous Mentoring Experience) which provides a unique mentoring program partneringuniversity student volunteer role models in a one-on-one mentoring relationship with Indigenous high schoolstudents (www.aimementoring.com)

Clontarf Foundation improves education, discipline, self esteem, life skills and employment prospects of youngAboriginal men, partnering with schools to create football academies. Funding from the Coca-Cola AustraliaFoundation provides places for 85 boys in Clontarf Academies (www.clontarffootball.com)

ALNF (Australian Literacy and Numeracy Foundation) is dedicated to raising language, literacy and numeracystandards in Australia. Funding from the CCAF is used to support ALNF’s Cross Generational Literacy TutoringInitiative in Tennant Creek (www.alnf.org)

CCAF’s community projects in 2010-2011 funded a large range of charities and community organisations acrossAustralia in cities, towns and rural areas. Where possible, our local CCA managers and sales reps are involved inthe process – championing local programs in their regions and handing over Foundation funds.

The Coca-Cola Foundation Indonesia (www.coca-colafoundation-ind.org)The CCFI was established in August 2000 by Coca-Cola Amatil Indonesia (CCAI) and TCCC to “elevate the level ofeducation and the quality of human resources in Indonesia”.

The Foundation funds a large range of programs, including the successful Learning Centres in public libraries. TheFoundation provides support including books, computers, audio-visual learning aids and skills training, as well ascapacity building to improve the services of the Learning Centres.

Other Foundation programs include the Cinta Air (“Love Water”) water conservation project which assistscommunities with fresh drinking water at a local level, the Go Green School program for environment education,Goodwill Scholarships for tertiary education, creative writing workshops and health education programs. Someestablished projects include the Setu Water project, where the Foundation has built water tanks to assist localfarmers with irrigation and their long-term ability to remain on the land producing crops.

The Foundation also funds the Micro-Enterprise Development Program which helps lift people out of poverty byproviding micro-loans, some as little as $AUS100, to enable people to establish sustainable businesses.

Coca-Cola Amatil PNG FoundationThe Foundation funds a range of initiatives, partnerships and programs in the field of HIV/AIDS prevention. In 2010the Foundation donated K200,000 to the National AIDS Council of PNG and to date, CCA has donated more thanK500,000 to the Council. CCA took the HIV/AIDS awareness message to consumers on its bottled water brand,Nature’s Own. For every 600ml or 1.5 litre bottle of Nature’s Own water that was purchased, a donation of 20 toeawas made to the Council.

WORKPLACE GIVING

Thirst For GivingCCA’s workplace giving program has been running since 2004. Employee donations are matched by the companydollar-for-dollar to a limit of $1000 per employee, per year. With only around 5% of our Australian staff signed up,we are driving a new employee awareness program in 2012 to increase levels of giving through our workplace.

These charities – which are selected by our staff – are our partners:

Mission Australia, CanTeen, Royal Flying Doctor Service, Australian Children’s Music Foundation, WWF, BigBrother Big Sister, Youngcare, Challenge and Children’s Hospitals in NSW, Victoria, Queensland, SA and WA.

In 2010 CCA Australia (employees and company matching) donated a total of $106,775 through Thirst For Giving.

This was an increase of 4.6% over 2009 donations.

SPC ArdmonaSPC Ardmona is a largest donor to the United Way Goulburn Valley Community Fund which raises funds locally todistribute locally. In 2010-2011 SPC Ardmona’s Workplace Giving Program included 275 employees who donated atotal of $20,769 which was supported by SPC Ardmona with a $15,000 community investment donation.

DISASTER RELIEFIn the wake of natural disasters like bushfires, floods, cyclones and earthquakes, stricken communities are usuallyimmediately in need of fresh water supplies and later, food – so some of our most critically needed donations are ofbottled water and tinned food.

After the devastating Victoria bushfires of 2009, there were no relief efforts required for 2010, however 2011 sawmassive floods followed by Cyclone Yasi in Queensland, then the severe earthquakes in Christchurch, NewZealand, which affected many hundreds of our communities, customers and staff.

CCA employees not only helped with clean-ups and disaster recovery in Queensland and in Christchurch, butcollaborated with our customers, large and small, to help them get back on their feet and open the doors of theirbusinesses.

Our national disaster fundraising efforts, matched by the Company, helped raise $114,000 in Australia and $22,000in New Zealand.

QueenslandJust hours after floods wiped out houses and water supplies in towns on the Darling Downs in Queensland, ourRichlands staff helped load SES helicopters with pallets of Mount Franklin bottled spring water to be delivered tothe victims and the emergency workers.

Our licensed team donated 100 kegs of Bruers Bright beer and sent staff to assist with fundraising efforts at theBreakfast Creek Hotel.

"On behalf of our customers in the Lockyer Valley and Somerset, I would like to thank Coca-Cola and the dedicatedstaff for giving so much of their time, resources and kindness during the flood crisis. Without hesitation, everyone atCoca-Cola went out of their way to help those residents cut off from mains water, doing everything possible tosource and help us deliver more than 70 pallets of bottled water.”

Paul Belz – Queensland Government’s Urban Utilities Emergency Manager

“Hey……just dropping you an email to let you know that the drinks that the company kindly donated for the peoplethat were affected by the floods went over a real treat. Thanks CCA ... it gave me the opportunity to do somethingfor those poor people in a time of need.”

Flood Clean Up Volunteer

Christchurch

The devastating 6.3 magnitude earthquake on 22 February 2011 left 166 people dead and hundreds missing orinjured, a city without power, clean running water and hundreds of damaged buildings. Within hours of theearthquake CCA NZ had loaded 10 pallets of bottled water onto an Air Force Hercules in Auckland to be deliveredimmediately to Christchurch Hospital.

In the following weeks CCA NZ donated more than $500,000 of bottled water to Civil Defence in Christchurch foremergency services and rescue teams. CCA’s Christchurch based Distribution Centre and Warehouse were badlydamaged in the earthquake with production down for more than six months. Staff rallied to support their colleaguesby working together and working extra hard as orders were re-routed across the system.

DONATIONS OF FOOD AND BEVERAGESAcross the Group, CCA and SPC Ardmona make significant donations of product, beverages, food andmerchandise to many charities, fund-raising events and community organisations every year as part of our broadphilanthropic effort.

Foodbank AustraliaOne of the charities we have supported long-term is Foodbank Australia, a not-for-profit, non-denominationalorganisation that seeks and distributes food and grocery industry donations to welfare agencies which feed thehungry.

In 2010 CCA and SPC Ardmona donated a total of 736,157 kilograms of food and beverages to FoodbankAustralia, worth approximately $1.4 million.

CCA is also a valued partner in Foodbank's Collaborative Supply Program, which aims to sustainably produce theessential staples required to provide nutritious, balanced meals, including a number of SPC Ardmona productssuch as canned fruit, tomatoes, baked beans, spaghetti and soup.

ENVIRONMENT AND COMMUNITY INITIATIVES

AustraliaMost of CCA Australia’s initiatives are run during Sustainability September@CCA every year.

In 2010 total funds raised for charities and community organisations: $101,485

120 staff planted 1200 trees for Landcare

143 staff donated blood

2035 staff attended a Workplace Expo event

Checked 368 vehicle tyres to save fuel and emissions

In 2011 2458 staff participated in the Diversity Walk

$56,584 was donated to 18 charities

80,000 consumers touched by our recycling messages

1 tonne e-waste collected

3324 trees planted

Pacific Beverages and Bluetongue BreweryTeams from Pacific Beverages and Bluetongue Brewery took a day out of work in July 2011 to volunteer for paintingbuildings at a Central Coast based charity, Camp Breakaway, which cares for families living with disabilities. Theteams were supported by Mitre 10 which provided the paint and equipment.

NSW At Work TeamCCA has a long-standing relationship with Ronald McDonald House and the NSW At Work team kept this going bycreating dinner, with the support of Coles Castle Hill, for the families who use the services of the House while theirchildren are in hospital.

Pumpkin-a-thonOur Crusta team in South Australia competed to see who could grow the biggest pumpkin and raise funds forac.care (Anglicare’s) Homeless Youth Resilience Scholarship program in the Riverland district.

CCA Graduate Team 20/twenty ChallengeOur team of graduates at CCA raised $6000 for The Spastic Centre (now Cerebral Palsy Alliance) at the annual20/twenty challenge, a marathon of swimming, kayaking and walking around Sydney Harbour.

CCA WA –Volunteer Bush Fire BrigadeCCA staff in Western Australia donated $20,000 to the WA Volunteer Bush Fire Brigade, an initiative with the IGACommunity Chest program. The funds went towards the purchase of a new 4WD troop carrier.

The Australian Council of Agricultural Societies Scholarship ProgramThis program rewards young Australians working or studying in the field of agriculture who are contributing to their

local communities. Every year CCA funds around 33 scholarships for an investment of $95,500.

SPC ArdmonaBreakfasts for Goulburn Valley SchoolsSPC Ardmona supports the local Goulburn Valley community through the United Way Goulburn Valley CommunityFund which started a local breakfast program for school children.

As a sponsor of the breakfast program in Shepparton and Mooroopna, SPCArdmona has provided 10 primary andsecondary schools with fruit and baked beans for breakfast.

In 2011 SPCA donated $40,000 worth of products to the program.

Meals-on-WheelsSPC Ardmona provides support to Meals Victoria (Meals-on Wheels) in the Goulburn Valley. SPC Ardmonaemployees helped by volunteering one to one and a half hours of their time on the second Tuesday of every monthto deliver these meals to Goulburn Valley residents.

ParraSIP Student ProgramIn 2011, SPC Ardmona partnered with Parramatta Schools Industry Partnership (ParraSIP) Inc, a Governmentfunded program, to help local schools by providing students in Year 10 and above, with hands on experience inbusiness organisations.

ParraSIP has worked with SPC Ardmona to build a resources program that provides first-hand experience andknowledge for its students. Students study FMCG related subjects such as Business Studies and Economics sothey graduate with a skill set suited for our industry.

SPC Ardmona Indigenous ScholarshipIn 2010 SPCA sponsored an Indigenous scholarship for participants in the Fairley Leadership Program inShepparton. This program aims to encourage and enhance qualities of leadership for the benefit of the regionalcommunity by providing an environment where emerging leaders from a range of backgrounds – business,government, cultural, community services and agriculture – can develop mutual respect and understanding.

SPCA Knit-TogetherForty SPCA staff joined with families and friends to knit 500 squares for blankets for the homeless in theShepparton area, distributed through the United Way Goulburn Valley organisation, which also receives significantannual funds from SPCA staff and the company.

SPC Ardmona’s KidsTown Adventure PlaygroundThis children's playground is an innovative and fun community project located in bushland between Shepparton andMooroopna. It relies on the generous support, donations and voluntary work of many local businesses, serviceclubs and individuals, and SPC Ardmona has committed to long-term support with approximately $350,000 donatedover the past 12 years.

New ZealandInvestment by CCA NZ in recycling education and recycling infrastructure development programs in 2010 – 2011was approximately $NZ350,000.

Watercare Harbour Clean Up TrustCCA New Zealand sponsors the Watercare Harbour Clean Up Trust, which removes rubbish from the WaitemataHarbour tributaries and foreshore. Kayaks and a mother ship are used to clean along the shoreline and beaches aswell as in estuaries and mangrove areas. Our staff are regularly involved in clean-up projects nationwide and in2010, employees volunteered for a half days paid leave to help clean up Buckland’s Beach foreshore.

Keep New Zealand Beautiful Clean Up Week 2010CCA New Zealand is a long time sponsor of the non-profit organisation Keep New Zealand Beautiful (KNZB) andholds a position the Board. KNZB operates as a charitable trust to promote litter abatement, waste minimisation aswell as town and city beautification across the country.

In 2011 CCANZ sponsored the annual Clean Up Week providing resources (rubbish bags and gloves) forthousands of volunteers around the country so that they could tidy their local environment. There was an extra pushto get the surrounds clean before the thousands of Rugby World Cup visitors arrived in September.

Waikato UniversityCCA partnered with The University of Waikato's U-Leisure team to drive public place recycling at their Hamiltoncampus.

New permanent recycling bins were installed and a comprehensive waste audit was undertaken to set theUniversity's recycling goals and objectives. One of them is to be most sustainable university in Australasia and weare supporting them on this mission. In 2010 during Orientation week an interactive PET bottle recycling wall wasactivated to drive home the message of recycling. Bags and tee shirts make of recycled plastic bottles (rPET) weregiven out to students.

Round the Bays Fun Run 2010Every year CCANZ provides product, sponsorship and public place recycling at the annual Round the Bays fun runon Auckland’s waterfront. The event attracts 70,000 participants each year – NZ’s largest fun run. 40,000 miniPump bottles were given out to runners.

Approximately 9 tonnes of waste is generated each year – more than half of which is now able to be recycled.

CCA NZ – Young NZer of the Year 2011CCA New Zealand has been a sponsor of the Young New Zealander of the Year Award in 2010 and 2011. Thisannual award recognises outstanding youth leadership and promotes achievements of young people who arepositive role models in their communities.

First FoundationCCA New Zealand supports the First Foundation, a unique educational trust that assists young New Zealandersinto tertiary education. The CCA Scholar for 2011,Victor Lefaoseuto, will undertake a four year scholarship programencompassing paid work experience at CCANZ, financial support towards his education and a mentor.

Christmas Box 2010CCANZ staff again donated time for The Life Centre Trust, with 20 volunteers joining a team of 450 to pack 5,198hampers in less than 3 hours. CCANZ also donated 5000 x 1.5 litre bottles of Coca-Cola which were included in thepack. These hampers go to underprivileged families throughout the Auckland region and upper North Island.

Diabetes New Zealand Project HopeCoca-Cola New Zealand is a supporting sponsor of Diabetes New ZealandHOPE program. HOPE stands for Healthy Options = Positive Eating, andfocuses on delivering information on nutrition and activity to Maori and PacificIsland parents and caregivers from a cultural perspective. Since the programstarted in 2008, over 1000 families have participated in the program.

Leading Change: Sharing StrengthsCCA NZ funded a workshop for health professionals and community workersspecifically working with Pacific populations in the Greater Auckland area.This workshop provided an opportunity for those who play a role in the food,nutrition and health space, to connect and share knowledge in order that

continuous improvements can be made in the health of Pacific populations.

IndonesiaAs one of the largest Australian businesses operating in Indonesia, with 7600staff and 8 manufacturing facilities, CCA is not only investing in growing thebusiness there, but is also investing in corporate responsibility.

CCA Indonesia has integrated social and environmental considerations intocore business activities and has been able to demonstrate a link betweengood corporate citizenship and expanded business opportunities. Forexample our daily Beach Clean Up programs on Bali beaches since 2007 utilising a team of 75 Coke-brandedcleaning staff and four Coke tractors, has resulted in significant lifts in beverage sales in some of these locations.

The inaugural Bali Big Eco-WeekendCCA Indonesia and Quiksilver Indonesia united for a three-day event in July 2011 – Bali’s Big Eco-Weekend – togenerate awareness and action on preserving the environment of one of the world’s most loved tourist destinations.

The events included:

Bali’s biggest Beach Clean Up on Jimbaran, Kedonganan, Kuta, Legian and Seminyak beaches with 2000tonnes of rubbish removed

King of the Groms (under 16 year olds) surfing championships

Legends v Local surfing competition featuring Australian legends Mark Richards, Tom Carroll, Jake Paterson,Martin Potter and Cheyne Horan and Indonesia’s Tipi Jabrik and Dede Suryana.

Bali’s biggest baby turtle release from the CCAI Sea Turtle Conservation Hatchery on Kuta Beach with 300turtles released into the sea

An environmental forum to discuss and plan a “green” future for Bali was attended by NGOs and Balineseofficials including the Indonesian Environment Minister Dr Gusti Muh Hatta and the Governor of Bali I MadeMangku Pastika. The Bali Clean and Green Multi-Stakeholder Networking for Solutions Forum, initiated by CCAIndonesia and Quiksilver Indonesia addressed all aspects of environmental pollution in Bali, particularly wastemanagement.

BorobudurActor Richard Gere, who is one of the world’s best known Buddhist activists, visited the eighth century BorobudurTemple in Magelang, Central Java in June 2011, promising to become an ambassador for the site. Seniorexecutives from CCA Indonesia attended the festivities during Mr Gere’s visit, and presented UNESCO with thecompany’s first payment to help fund activities to maintain the sacred temple, which was damaged by volcanic ashfallout from the Mt Merapi activity. At the same time, CCA Indonesia signed a five-year agreement to be theexclusive beverage provider for PT Taman Wisata Chandi at the Borobudur, Prambanan and Ratu Boko sites.

I Love Jakarta Clean Campaign – Coca-Cola Waterways Education CentreCCA Indonesia has been undertaking the education of the Jakarta community on water pollution with ourWaterways Education centre, situated at Ciliwung, right on one of the polluted canals in the centre of Jakarta. Fromthe Centre, staff collect and measure volumes of rubbish daily.

CCAI’s I Love Jakarta Clean Campaign also supports car free days in Indonesia’s capital and places waste bins inTrans-Jakarta bus stations.

Micro Economic Development (MED)CCAI has created a Micro Economic Development Program across Indonesia to provide sound and rewardingbusiness opportunities and benefits for customers, suppliers, distributors and local communities.

Under the program, we focus on empowering small and medium enterprises by providing business training andeducation. In 2010 alone, CCAI conducted over 13,000 training and business workshops across Indonesia.

CCAI’s Medical Centre - Health ClinicsIN 2010 more than 20,000 people – including staff and their families as well as 4241 members of the communitywho live near our facilities – have been treated for free by CCAI funded clinics.

Eco-MobilesCCAI has funded four mobile mini-libraries which travel to communities and schools supplying a large collection ofbooks, games and videos on environmental and health topics.

Eco-UniformsCCA Indonesia sourced fabric made with organic cotton and rPET (recycled PET resin) from PET plastic beveragebottles to supply uniforms for more than 10,000 staff, which were designed in collaboration with Quiksilver

Indonesia. Every shirt used at least five recycled Coca-Cola bottles, and every staff member received threeuniforms – so the equivalent of 150,000 Coke bottles were recycled to re-clothe our CCAI staff.

The designs were launched by staff at a celebratory catwalk event in Jakarta in April 2010.

Papua New GuineaCCA in Papua New Guinea helped buy K20,000 worth of furniture for Haus Clare, an orphanage run by the CityMission and PNG Sustainable Development for 30 children who are orphaned by AIDS or are victims of familyviolence.

CCA’s Lae staff also visited and provided gifts of beverages and fruit to children at the Angau Memorial Hospital inLae.

OUR BRANDS

Mount Franklin(to view the case study click here)

CCA’s premium bottled spring water brand first “turned pink” in 2006, and in that time until the end of 2011 thebrand has donated more than $1,350,000 to support breast cancer awareness charities. Additional funds have alsobeen raised via CCA staff and our customers in related fund raising activities.

Deep Spring Sparkling and Still Spring WaterIn late 2010, Deep Spring Sparkling and Still Spring Water bottles turned their lidspurple in support of the Avner Nahmani Pancreatic Research Foundation. CCAjoined Woolworths in an effort to build greater awareness of pancreatic cancer andraise funds to support research through the Foundation, set up after the death ofWoolworths executive Avner Nahmani who died of pancreatic cancer. CCA’scontribution is also to remember Mike Hall, a long-standing CCA executive who alsodied of pancreatic cancer.

The campaign, which is ongoing in Woolworths stores, has raised more than$200,000 in its first year through the sales of Deep Spring, with 10 cents per bottlesold going to the Foundation.

CCA and SPC Ardmona’s Woolworths account teams also raise funds for theFoundation in the annual Avner Charity Walk in Sydney.

Nature’s OwnCCA in Papua New Guinea continued its partnership with the National AIDS Council through its Nature’s Owncampaign. The “red lids” campaign raised K200,000 in 2010 for the Council and each bottle carries messages ofawareness of AIDS and HIV prevention.

Case Studies

CASE STUDYNEW ZEALAND- COCA-COLA CHRISTMAS IN THEPARK

Over 300,000 people attended CCCITP in 2010. Beginning in 1994, Coca-Cola Christmas in the Park is one of thelargest, free annual outdoor events in the world and is an iconic Kiwi celebration. During the Christchurch CCCITP,110,000 people observed a minutes silence for the 29 people that were killed in the Pike River Mining disaster.Coca-Cola Christmas in the Park 2010 once again raised funds for Surf Life Saving New Zealand as well as raisingpublic awareness of the important role SLS plays in the community.

CASE STUDYINDONESIA – COKE FARMS – BANDUNG,SEMARANG, SURABAYA AND MEDAN

Many of CCA Indonesia’s eight facilities have some under-utilised land, and in 2009, we embarked on a project to“open the gates” to local farmers and villagers for them to establish organic farms and fish breeding ponds.

The Coke Farm project has been a huge success, with crops of vegetables, hydroponic plants, tea leaf compostbins and tree seedling beds being established on vacant land inside the Coca-Cola bottling plants in Bandung,Semarang, Surabaya and Medan. In the first three months of 2011, Coke farms produced around 10,080 kilogramsof compost, harvested 300 kilograms of vegetables and planted 2500 trees. The compost is produced from wastefrom the manufacturing process, particularly tea leaves from the manufacture of Frestea, and waste water from the

bottling process.

As well, more that 800 kilograms of compost and 2000 trees have been donated to the Indonesian Government’senvironmental program, One Billion Indonesian Trees.

Working with local governments, NGOs and universities, CCAI both educates and employs farmers from the localcommunities to operate and maintain the Coke farms. The full proceeds of the Coke farms go back to the farmersand the community.

CCAI also provides post-production material like PET bottles, cans, sugar bags, water and tea leaf waste so thefarmers can reuse and recycle them in the Coke farms.

CASE STUDYINDONESIA – COKE KICKS

In 2011 CCA Indonesia established its Coke Kicks Grassroots Soccer Development program which was designedto provide opportunities for children in local communities to receive professional soccer training .

Coke Kicks, in collaboration with the Asian Soccer Academy Foundation, was piloted in 70 villages and rural areasacross Indonesia, reaching more than 2000 children from the ages of 12 to 16, and local trainers.

CASE STUDYINDONESIA - KUTA BEACH SEA TURTLECONSERVATION CENTRE

CCA Indonesia opened the Sea Turtle Conservation Centre in a giant turtle-shaped hatchery on Kuta Beach in July2010.

The Conservation centre, which CCAI built in conjunction with Quiksilver Indonesia, will prevent the depletion of theendangered Olive Ridley turtles, the smallest sea turtles in existence. The population of the turtles, which havebeen coming to Kuta Beach for centuries to lay their eggs, has been severely depleted over the past decade due toincreased coastal development and tourist foot traffic, poaching, dogs and other predators.

It’s estimated that more than 10,000 eggs have been collected from Kuta and surrounding beaches and safelyhatched in the Conservation centre after a two month incubation period. The baby turtles are frequently releasedinto the sea, often by tourists who are being made aware of the importance of keeping Bali’s fragile environmentclean and green.

OUR APPROACHIn 2010 CCA employed 14,729 people in Australia,New Zealand, Indonesia, Papua New Guinea and Fiji.

Within our workplaces we focus our efforts on several key issues:

Fostering a diverse and inclusive culture with fully engaged employees

Working towards achieving best-practice occupational health and safety status in all our workplaces

Developing wellbeing and fitness programs to encourage our people to live healthy lifestyles

GOVERNANCE

Building an Infrastructure to Support Diversity CCA has adopted the ASX Corporate Governance Council’s recommendations on gender diversity and hasdeveloped a Gender Diversity Policy to outline our objectives of creating fair, equitable and respectful workplaceswhere women are supported.

CCA has established overall gender balance goals and nominated targets for the CCA Board, senior executivesand managers and employees across the Group.

In 2011 CCA became a signatory to the Australian Employment Covenant committing the Company to a target of150 sustainable jobs for indigenous Australians, and began developing an Indigenous Employment Strategy. ThisStrategy links work being done by Coca-Cola Australia Foundation partners with indigenous young people inschools and universities with a sustainable employment strategy.

MANAGEMENT

Employee EngagementWhere CCA regularly measures employee engagement – Australia, New Zealand and SPC Ardmona – we haveincreased our engagement scores.

In 2010 87% of CCA Australia employees participated in our Employee Opinion Survey, which is our bestparticipation rate so far. Our overall Engagement Score has increased from 64% in 2009 to 67% in 2010. This nowpositions us in the Best Employer Range (AON Hewitt).

In 2010 in New Zealand the employee engagement score under AON Hewitt was 68%, an increase of 2% from66% in 2009.

At SPC Ardmona employee engagement scores moved up 1% from 43% in 2009 to 44% in 2010.

HEALTH AND SAFETY

AustraliaIn 2010 Australia experienced a positive trend in relation to workplace injuries. Days lost in respect to lost timeinjuries reduced by 330 days or 30%, reducing the Average Time Lost Rate (ATLR) to 10.5 in 2010.

As well, the safety engagement score increased from 83% in 2009 to 89% in 2010, indicating that more employeesbelieved safety is considered important at CCA. Significantly 91% of the employees indicated they believe theyknow what to do when they see a safety issue.

CCA remains committed to OH&S training at all levels and has embarked on a three year program which will seemanagers and employees trained in their responsibilities and proactive hazard identification.

NSW finalised its application for the Retrospective Paid Workers Compensation Scheme and was accepted withconsiderable savings expected over the next four years. The foundation to this is a proactive Injury ManagementProgram with management support and is focused on early return to work.

In 2011 in Australia, CCA began developing an innovative workplace health program with the support ofresearchers from The Boden Institute of Obesity, Nutrition, Exercise & Eating Disorders at the University of Sydney.The program encompasses employee health checks, the physical work environment, food and catering provision,exercise and activity programs and corporate work policies, and is being trialled and evaluated in selected CCAworkplaces.

The move follows renewed employee and public interest in workplaces that support the health and wellbeing ofemployees, whilst improving productivity and workplace performance measures. It is hoped the project will alsodeliver best practice learnings for use by industry, government and the wider community.

New Zealand“Think Safe + Work Safe = Home Safe” is the mantra that has driven the most successful 12 months of health andsafety results at CCANZ in recent years.

In early 2010 CCANZ signed up to Zero Harm Workplaces, a business leaders forum set up in response to a number of work accidents in New Zealand. Led by the senior management team, the commitment was extendedacross the business by making every employee responsible for safety.

The launch of the new Zero Harm CCANZ workplace initiative in April 2010 delivered significant reductions inCCANZ’s key measures of health and safety:

69% reduction in Lost Time Injuries1.

66% reduction in Lost Time Injury Frequency Rate2.

89% reduction in Total Days Lost3.

To support the new program, the Health and Safety team was restructured to include the appointment of a NationalHealth and Safety Manager and two additional Health and Safety advisors – making a team of four practitionersempowered to make change.

The initiative was given its own branding, unique to CCANZ.

A Health and Safety Strategic Plan has been put in place to ensure our zero harm focus remains sustainable from2011 – 2013.

The Plan outlines the actions required that CCA NZ will deliver to further reduce workplace accidents and incidents,with the ultimate goal being Zero Harm. Key safety action areas for our three zero harm pillars – Leadership,Systems and Culture – include spreading the word, streamling the paperwork, improving our systems, managingour hazards, learning better ways and valuing our zero harm teams.

A Health and Safety Strategic Plan has been put in place to ensure our zero harm focus remains sustainable from2011 – 2013.

The Plan outlines the actions required that CCA NZ will deliver to further reduce workplace accidents and incidents,with the ultimate goal being Zero Harm. Key safety action areas for our three zero harm pillars – Leadership,Systems and Culture - include spreading the word, streamling the paperwork, improving our systems, managingour hazards, learning better ways and valuing our zero harm teams.

IndonesiaThe high number of traffic accidents in Indonesia because of the pressure on the roads infrastructure remain aconcern and CCA Indonesia has focused strongly in past year on increasing safety practices for our drivers. In2010 and 2011 CCAI continued the Safety Defensive Driving training program, which includes on-road driving tests.A total of 250 deliverymen have been trained and all remaining staff were trained by the end of 2011.

As a result of our continued focus on reducing traffic accidents, CCAI has increased driver trainers by 10 to a totalof 18. These trainers are dedicated to improving the defensive driving skills of CCAI delivery staff.

The Safety Defensive Riding training program has been expanded to cater for an increase in the numbers of salesrepresentatives in 2012, and more than 1700 sales representatives will be trained by July 2012. All OHS piloted programs were reviewed. The outcome of the pilots has proven that these programs are effective inaccelerating safety knowledge development and safety awareness amongst employees. CCAI has learned that safety culture is best developed by both leading by example and active involvement.

Health and Safety month (June each year) across Indonesia focused on the implementation of a number of safetypolicies, including Defensive Driving and Riding, Near Miss and Potential Hazard Reporting and Safety Talk.

A Stop Smoking program was launched which focused on improving awareness of the health consequences ofsmoking. CCAI provides support for staff wanting to quit smoking.

PNGCCA in PNG continues to drive ourprevention strategy in fighting Malaria andin 2010 distributed another 900 freemosquito nets to our employees. Despitethe increase in employee numbers overthe years, we continue to experiencereduction in reported malaria cases fromour employees with reported malariacases down 17% from 2009.

The free Cholera vaccination program wassuccessfully completed for all ouremployees living in high risk areas.Despite the huge outbreak in the country,we did not have any cases. A total of 412employees were vaccinated in thisprogram and we continue to vaccinatenew employees from high risk areas.

We have a good working relationship with a number of non government agencies who have assisted in providingbasic awareness on some of the key social issues affecting our country – such as family violence, sexual assaultand corruption.

We assisted in a major TB awareness campaign and helped distribute information through our employees. Some ofour employees also provide awareness to their communities in their own time.

SPC ArdmonaThe Soft Tissue Centre program has continued at all manufacturing plants in the Goulburn Valley. This enablesemployees with minor injuries to be provided with treatment before they become bigger problems, which continuesto drive a low Average Time Lost Rate. The number of days lost continues to fall. Employee lost time injury rates inthe SPC Ardmona business continued to fall with a reduction from 21 LTIs in 2009 to 13 LTIs in 2010.

In 2011, employees at the Goulburn Valley and Hawthorn sites were once again able to participate in the WorkSafeVictoria WorkHealth Program which measures blood pressure, cholesterol, blood glucose and waist size and canassist the health outcomes of many employees.

DIVERSITYWhile CCA celebrates the many differences that exist within its own workforce, the majority of the focus in 2010 and2011 has been on Gender Diversity.

In 2010 CCA developed a Gender Diversity Policy to outline its objectives of creating fair, equitable, respectfulworkplaces where women are supported in an inclusive environment, given recognition based on individual merit

and considered for opportunities to advance and succeed regardless of gender. The Policy clarifies how Diversitywill be approached and supported within CCA and indicates the responsibilities at all levels that will enable CCA’sculture to move increasingly toward a more gender-balanced workplace across the Group.

AustraliaCCA Australia’s Embracing Difference Council, which was formed in 2009, looks at ways in which to addmomentum to the CCA Australia’s efforts in relation to diversity. One of the first tasks undertaken by the council wasthe Embracing Difference survey which was completed in 2010.

The Embracing Difference Council Initiatives are highlighted in the below diagram:

Employee Network Groups: The survey indicates that 45% of our workplace want to be involved with activitiesthat network people based on common interests. CCA Australia is currently researching tools to enableemployees to network more effectively.

1.

Gender: Two mentoring programs have piloted to educate our workforce on how to take our genderrepresentation at all levels from good to great. A Women's Mentoring Program pilot has been launched. Thepilot program participants will work through a Mentoring Kit in a self paced manner. To further enhance theirindividual learning and development, the participants will take part in fortnightly peer group mentoring sessionsfacilitated by two female senior leaders at CCA and fortnightly teleconferences. Each teleconference involves aninternal or external subject matter expert addressing the group on a module specific topic.

2.

A Mastering Gender Diversity Mentoring program pilot is also underway for Male Managers.

Flexibility: One of the key insights from the survey was the current and future demand for flexibility. As a resultthe Flexible Work Options policy has been updated and implemented.

3.

Culture: delivering initiatives around Indigenous Communities, Cultural awareness and Community events.4.

Education and Communication: Embracing Difference is now incorporated into our key learning programs frominduction through to leadership development. Key communications are also circulated in the business to regularlyupdate on achievements and progress around Embracing Difference.

New ZealandCCA New Zealand has appointed a Diversity Project Lead who will build a diversity strategy and diversity plan as acore part of the HR Business Plan for 2012. The NZ business has also trialled a program for Auckland employeestargeting new parents as part of their Wellbeing program in 2011.

IndonesiaCCA Indonesia already has female Directors in the positions of IT Director and Strategic Planning Director, and in2010 added another female Director to the position of HR Director. The number of female managers has alsoincreased by 40% from 79 to 109.

Future plans are to introduce a Women’s Leadership Council and a female mentoring program to assist in the

promotion and development of women in the business, including in manufacturing and sales.

FijiCCA in Fiji has largely focused on social activities as a way to bring disparate work groups together as well asformulating a recruitment strategy to increase the selection of female employees, and an increased focus onreligious celebrations to enable greater acceptance of the diverse groups of employees amongst the workforce.

Papua New GuineaCCA in PNG has taken a strategic decision to appoint women in certain strategic production roles.The Companyhas enabled free consultations with a female gynaecologist for their female employees in the Lae site. The policyon sexual harassment in the workplace has been re-written and awareness programs conducted with employees.

SPC Ardmona SPC Ardmona continues to drive improved gender diversity outcomes with the appointment in 2011 of two seniorfemale members to the SPCA Executive Team.

In order to ensure we have consistent, comprehensive, equitable and objective human resource policies andprocedures to remove potential inequities SPCA has undertaken a review of a number of policies and procedures toensure that they meet the current needs of the Company and also to make sure any potential inequities regardinggender are removed.

As well, we have established a network of contact officers covering Equal Employment Opportunity (EEO) issues.

We are re-educating our leaders and employees on workplace behaviour and Equal Employment Opportunity andreinforcing the Company’s ‘no tolerance’ position on inappropriate behaviour. All employees attended compulsorytraining sessions at all Victorian locations, covering 700 employees.

We held workplace behaviour sessions for leaders and gave managers training to encourage better communicationskills.

OUR PEOPLECCA believes that achieving our business priorities depends on our people and we recognise that great companiesare built through highly engaged employees. In order to embrace the diversity of our operations we have a number of core people strategies that are adoptedacross the CCA Group. These include:

Culture and Values

Talent Development and Education

Leadership Development

Health and Safety

AustraliaPerformance Reviews are a critical part in managing our employee’s performance. The purpose of PerformanceReviews is to evaluate the accomplishments and success of an employee, whilst also assessing their gaps todetermine opportunities for growth. Within CCA Australia, employees are measured not only on “what” they haveachieved, but also on “how” they have gone about achieving their objectives.

By including our behaviours as part of our performance measurements, we not only have a more holistic approachin measuring performance, but are able to reinforce the positive behaviours in all employees and teams.Performance Reviews provide employees with future direction, motivation and highlights opportunities to developtheir skills, abilities and behaviours. This review process is central to building and maintaining a strong culture andensures that we are all working and leading in a consistent way across every area of our business.

With culture and values Australian states continue with local initiatives such as collaboration days to focus onculture locally. Our Senior Leaders also have dedicated project teams to focus on CCA’s culture.

New ZealandCCANZ invests significantly in recruiting, developing and retaining the very best talent to ensure our position asleader in the New Zealand FMCG sector. In 2011 we implemented the CCANZ leadership framework “The Way WeLead” and have developed the following initiatives to achieve the leadership bench-strength needed:

Inspire: A leadership development initiative for first-level leaders across the business, designed to developleadership capability as well as encourage collaboration across business units.

1.

Senior Leader Program: As part of the Senior Managers’ Quarterly review program, this initiative has focused onStrategy and Culture development, giving senior managers an opportunity to reflect on strengths andopportunities.

2.

Excel: The Excel programme is a twelve-month program, designed to accelerate development of “high-potential”future leaders. A highlight of the programme is the Excel Business Challenge which sees a number of simulatedbusiness teams competing against each other and developing their teamwork, decision-making, presentationskills as well as commercial acumen. The Excel program also offers future leaders opportunity to interact withour Leadership Team, mentor others in the business (or outside the business) and work on cross-functionalorganisational projects.

3.

In 2011 CCA New Zealand created a staff engagement program called Game On to celebrate the company’ssponsorship of the Rugby World Cup, drive participation, encourage discretionary effort and reinforce thecompany’s six values of People, Customer, Citizenship, Innovation, Passion and Excellence. The program kickedoff with a national Pass the Ball Video and centred on monthly nominations of best player, coach and team. FormerAll Blacks Grant Fox, Sean Fitzpatrick, Frank Bunce and Christian Cullen all lent their presence to inspire andexcite employees and 120 tickets to Rugby World Cup pool games were given away as prizes.

IndonesiaAn activity named Coca-Cola Ambassador was undertaken to promote a “Sparkling Beverage” drinking cultureacross the organisation, at the same time encouraging our employees to live one of CCAI’s Values: Passion – Beloyal to our brand and company.

All employees are to act as Ambassadors, by sharing Cola-Cola with family and friends. A competition was heldasking employees to submit a short story expressing their desire to win the Coca-Cola Ambassador title. More than1800 stories were submitted and 7 winners were awarded the Coca-Cola Ambassador title.

SPC ArdmonaIn 2011 CCA made the decision to right-size the SPC Ardmona business and consolidated the production of fruitand vegetable products to two facilities in the Goulburn Valley, Shepparton and Kyabram, with Mooroopna to beclosed. The 150 employees across the business who were affected by this change were offered alternativeemployment opportunities within CCA’s beverage business. SPCA worked with the Victorian Government to ensureall affected employees had the opportunity to retrain or build skills through assisted training places.

SPC Ardmona has embarked on a business transformation in order to create a profitable and sustainable future.Major changes are taking place to achieve a newly defined vision to be Number One in Healthy Snacking by 2015.At the heart of this transformation lies the aim to create a high performance culture by becoming a learning

organisation. A new business strategy and a redefined values based culture will assist the people of SPC Ardmonato feel respected, trusted, empowered and valued in order to work together to achieve a new purpose: Naturallygood food, anywhere, anytime.

SPC Ardmona continued its Values Recognition Program and identified a "Values Ambassador" Award recipient.Many employee initiatives have been developed under the umbrella of the new OUR SPCA including theSPCArnival held in April each year which celebrates the end of season and brings together approximately 1,000employees from across the SPCA group.

TALENT DEVELOPMENT AND EDUCATION

AustraliaCCA Australia has continued its ongoing commitment with its annual Organisational Capability Review whichreviews every individual’s talent throughout the business. High potential employees are fast tracked throughprograms such as our Emerging Leaders Program, and mentoring programs.

We have established a Graduate Steering Group to recruit graduate talent. From 2010 when CCA Beverages hadthree graduate programs in place; in Finance/Commercial, Corporate and IT, we have implemented two newprograms in Supply Chain and Sales & Marketing which includes a rotation with Coca-Cola South Pacific (CCSP).These programs are for a period of two years and require the graduates to complete four half yearly job rotations.

CCA’s Corporate Finance has a co-operative program in place with UTS and UNSW which targets exceptionalstudents and places them with a business unit for a six month placement.

Programs have been developed for Supply Chain and Sales & Marketing including a rotation with SPCA and CCSP.

Our commitment to education continues through our technical specific programs such as our sales curriculum, softskills and our blended learning approach using the 70 20 10 methodology of learning. Online technologies forlearning are increasing with many of our compliance modules now online.

SPC ArdmonaSPC Ardmona, in partnership with the Australian Manufacturing Workers Union (AMWU), won the inaugural 2011Victorian Industry Collaboration Award at the Victorian Industry Training Awards.

SPC Ardmona and the AMWU’s nomination recognised the collaboration to implement a National Food Instituteinduction-to-leadership training program for more than 2,000 workers in the Goulburn Valley. These nationalqualifications are recognised throughout Australia.

This award recognises the hard work and commitment of many within SPC Ardmona Operations and HR Teams todeliver a best practice training system that gives all employees a clearly defined career structure and tangible,personal and business, outcomes. In addition significant work was completed around new Classifications Systemand Standard Operating Procedures within the business. Trainees in the Business Improvement Groups Unit of thetraining program have already implemented 19 projects within SPC Ardmona. The new Manufacturing and Logistics Training program has continued in 2010 and 2011. This program and a newClassification System recognises current employee competency and provides a training path to a Certificate ineither Food Processing or Transport & Logistics. Approximately 160 employees, who signed up in 2009, have nowcompleted and have been presented with their Certificate II in Food Processing. In 2011, approximately 120 ofthese trainees have continued on and will finalise their Certificate III in early 2012. In addition a further 180 traineeshave signed on for the Manufacturing and Logistics Training Program which has also been extended to cover theKyabram factory operations.

New ZealandCCA New Zealand has provided a voluntary development program for the past six years called No Limits which isdesigned to help our employees improve their communication skills. The program attracted some governmentfunding and 58 staff participated through all of our major manufacturing sites.

The Graduates program was launched in 2010 with the recruitment team finding the best graduates in the countryfor three places in the sales team and two for supply chain roles – which will be rotated through all businessfunctions for a period of 3 years permanent employment.

Since 1991, CCA NZ has held an annual community based Coca-Cola Careers Expo event, providing job andcareer information for a total of half a million secondary school students over the 20 year period.

LEADERSHIP DEVELOPMENT

AustraliaLeadership capability is built through feedback tools to enhance self awareness and create development plans. Wehave continued to roll out the Mettle Leadership Gauge Retests for our top 500 leaders, and a Leads Others 360°for our next level of leadership. Our top 500 leaders all came together in late 2010 for a Senior LeadershipProgram. A dedicated curriculum is available for all leadership levels.

CCA was named in the 2011 Top Companies For Leaders, conducted by AON Hewitt/Fortune/the RBL Group to findthe Top 20 Asia Pacific companies for leadership development.

IndonesiaFollowing the Leadership Competency Framework introduction to employees in late 2010, early in 2011 theLeadership Development Program will cover all leaders in the organisation, starting with leadership assessmentand development planning for Executive Team members.

A series of leadership training programs will run through 2011 and 2012.

The graduate development program continues to provide a ready source of talent with 178 graduates recruited in2009 – 2011. These graduates have started to contribute significantly to the business.

PNGCCA PNG developed for the first time an in house supervisor training program and a total of 64 supervisorssuccessfully completed the 2 day program. A number of these participants have now been promoted to senior roleswithin their functions or have taken on additional responsibilities.

Our graduate and apprentice program continues to grow and currently we have 31 participants covering all our corefunctions. We plan to add another 9 next year to bring the number up to 40. We have 42% females and 52% male.

We have set up a recruitment base through three of our major universities and are recruiting directly for strategicroles. We also involve students in our vacation trainee programs. Our participation in engaging throughsymposiums, leadership workshops and other sponsorship activities has strengthened our relationship with theuniversities.

SPCASPC Ardmona appointed a Learning and Organisation Development Manager in 2011 and increased the number ofLeadership and Development Training programs in 2010 – 2011. The aim is to develop leaders who act andexecute with impact.

Case Studies

CASE STUDYANDREW MCAULEY INSPIRATION AWARD (L-R)BRUCE HERBERT, TERRY DAVIS

Andrew McAuley joined the CCA family in 1996 as an IT specialist. Outside of work, Andrew was known as asuperb athlete and highly regarded adventurer who lived by the rule that nothing is impossible. He wasnamed Australian Geographic's Adventurer of the Year in 2005 and completed the first ever and only directnon-stop crossing of the Bass Strait in 35 hours. In January 2007, Andrew died tragically during his attemptto be the first person to kayak solo between Australia and New Zealand.

In memory of Andrew and his achievements in life, CCA created the Andrew McAuley Inspiration Award. Theaward recognises our employees whose work or life outside of work has inspired or enriched the lives ofothers.

In 2010 Bruce Herbert, CCAs Director of Supply Chain, was selected from a great field of nominees for hisoutstanding work with Compassion, a Christian child advocacy ministry which works with children living inextreme poverty in over 25 countries around the world.

Working with a small group of likeminded individuals, Bruce has helped to drive the sponsorship of childrenin Kenya through Compassion. Through the child sponsorship program, each child receives the basicnecessities of life, health treatments and training, educational opportunities, development of self-confidenceand social skills, and exposure to key life skills and vocational programs.

In 2010, Bruce established the Walk for Compassion, a 223km bushwalk along the Great North Walk fromCherrybrook to Newcastle in New South Wales. Trekking for nine days and losing five kilos, Bruce and histeam raised $33,000 for the Oloontoto water project, to provide clean water for a village in Kenya wherewomen currently need to walk 15km, and risk assault, to collect water for their families.

CASE STUDYSAFETY IN THE WORKPLACE

INNOV8 is our internal program which encourages and drives innovation within CCA, delivering real value toour business and our customers.

Paul Donaldson, our State Distribution Manager for Victoria and Tasmania, along with his team membersMitchell Kennedy, our Distribution Contracts Coordinator, and Rachel Pugh, our Distribution Coordinator wasthe inaugural winner of the Distribution category at the 2010 INNOV8 Awards.

The 'Hi-Vis' Trolley is a solution which substantially enhances the safety of our drivers and pedestrians. Trolleys, which are used by our route drivers to deliver our products to customers, are fitted with high qualityreflective tape and a reflective caution sign. The innovative 'Hi-Vis Trolley' reduces the risk of injury to ourdrivers and contributes to a safer working environment.

The innovation, which will assist all drivers across all functions of our business, was inspired by a desire toincrease the visibility and safety of our drivers in their daily work. To date, 50 trolleys have been transformedinto 'Hi-Vis Trolleys', including all owner drivers and Gregory Transport drivers.

WORKPLACE EMPLOYEE ENGAGEMENT

CCA LTIFR (MAT) (PER 1,000,000 HOURS)

CCA ATLR

CASE STUDYARTHUR PHILLIP PARKINVESTING IN OUR LOCAL COMMUNITYAll-year round rainwater irrigation for landscaping, new play facilities for kids, exercise equipment, picnicBBQs and shelters, car parking – the Arthur Phillip Park in Northmead, Sydney has been transformed by a$838,000 upgrade under one of the most successful long-term community projects ever undertaken by CCA.

In August 2011, The Lord Mayor of Parramatta Cr John Chedid, David Elliot MP (L-R), dozens of localresidents, Parramatta Councillors and CCA executives, celebrated the re-opening of the Park, which isdirectly across the highway from CCA's largest facility in Australia, in O’Briens Road, Northmead.

The Park’s upgrade, fully funded by CCA, was part of our larger $2 million Northmead Community Benefitsprogram which was put into under place under the Department of Planning in 2006.

In 2006, when CCA began the process of submitting a Development Application for the construction of itsnew $95 million fully automated Distribution Centre on the company’s 13 hectare Northmead site, the localcommunity was keen to be consulted about what they wanted from the Community Benefits program, whichwas mandatory under the previous Planning Act.

CCA undertook extensive community consultation, and a broad program for the local residents took shape –a multi-language library for Darcy Road Public School and an artist’s in-residence program – as well as thepledge to upgrade Arthur Phillip Park.

The planning, which took place during the long drought which saw Australian cities under stringent waterrestrictions, included an ambitious proposal to build two huge underground rainwater harvesting tanks withinthe grounds of CCA’s Northmead site. These tanks, which were inspected while under construction by thelocal MP and former NSW Premier Nathan Rees, who spoke of his memories of getting grazed kneesplaying football on the hard Arthur Phillip Park grounds, hold close to 2 million litres of water when full. Thewater is used to irrigate the Arthur Phillip Park grounds and landscaping all year round.

CCA’s National Planning and Operational Excellence Manager Jeff Maguire, who had overseen much of thePark project since 2007, told the gathering at the Park’s re-opening that the upgrade was one of the bestexamples of CCA’s commitment to its local communities.

“CCA has been an integral part of this community for almost 40 years and we are delighted to see all theimprovement to the Park, including the fact that the landscaping is watered by rainwater from the hugeunderground water tanks we built at our Northmead plant,” Mr Maguire said.

“We look forward to working with our neighbours and Parramatta Council to ensure the Park’s sustainabilityand its ongoing use and public benefit.”

CASE STUDYCOCA-COLA PLACEOUR 5-GREEN STAR HEAD OFFICE FIT-OUTThe sustainable fit-out of our Sydney headquarters in North Sydney, into which we moved in July 2010, wasawarded a 5-Green Star rating by the Green Building Council of Australia in August 2011.

Green Star, an initiative of the Green Building Council, is a comprehensive national voluntary environmentalrating system that evaluates the environmental design and construction of buildings.

Green Star ratings are awarded across nine categories, including Management, Indoor Environment Quality,Energy, Transport, Water, Materials, Land Use and Ecology, Emissions and Innovation .

A 5-Green Star rating signifies “Australian Excellence” in environmentally sustainable design and/orconstruction, and our office fitouts -- which feature open plan workstations, low energy, efficient lightingdesign; energy metering for major use; water efficient features, cyclist facilities and showers and gymfacilities; furniture with reduced environmental impacts, waste and beverage container recycling bins – wasrecognised for sustainability.

The 5-Green Star rating for our interiors – which deliver significant environmental benefits such as reducedenergy consumption; reduced GHG emissions; reduced water consumption; improved indoor air quality;natural light and open-plan workstations, indoor landscaping -- is a welcome addition to the 6-Green Starrating which the entire building, called Coca-Cola Place, received from the Green Building Council in 2009.

One of the best outcomes was demonstrating to our customers who wanted Green-Star ratings themselves,that a full suite of CCA’s customer offering – beverage coolers, vending machines, coffee and snackmachines – could be incorporated into a Green Star rated office environment, without compromising onsustainablility. This also confirms CCA’s leading position as a supplier of energy efficient fridges and coolers.

We were able to use the 111 Navy Chair, a classic design made from 111 recycledCoca-Cola plastic bottles – a collaboration between The Coca-Cola Company andEmeco, the Navy Chair designer .

“We’ve warmed to the place – the internal stairs connecting six levels encouragesgreater communication and less reliance on lifts. In our old office people weretucked away in their own offices or behind a cubicle, in Coca-Cola Place it’sopen-plan, with numerous ‘touch-down areas’ or breakout areas on the floors formeetings.” – Peter Steel GM Strategy and Planning CCA.

6-GREEN STAR BUILDING:The whole building, Coca-Cola Place, was awarded a 6-Green Star by the Green Building Council ofAustralia, which rating represents “World Leadership” in environmentally sustainable design. The buildingfeatures a trigeneration power plant, grey and rainwater recycling systems, natural lighting and energyefficient mechanical and lighting systems, and charging bays for electric and hybrid cars and a large space

for bicycles.

TRIGENERATION PLANTIn March 2011, Investa, the owner of Coca-Cola Place, signed a landmark agreement with Cogent to reducethe carbon footprint of the building. Under a site lease and energy supply agreement, Cogent operates an800 kW trigeneration plant in the building’s basement, which supplies low carbon energy (electricity, hotwater and chilled water) to 126 Phillip Street, a commercial building in Sydney’s CBD, using the EnergyAustralia grid – the first for a commercial building in Australia.

The estimated saving in GHG emissions from the plant is approximately 1300 tonnes of CO2 per year, whichis the equivalent of removing 500 cars from the roads.

CASE STUDYSUPPLIER OF THE YEAR AWARD & INNOV8AWARDSUPPLIER OF THE YEARCCA launched the first-ever Supplier of the Year Awards in 2010, to celebrate and encourage thebroadening of the relationship we have with our suppliers across all our business functions. The program,where we invite our best suppliers to compete for Awards in a number of Categories, have resulted insuppliers deepening their understanding of our business, bringing innovation to the business, andcontributing to continual improvement in the way we work together.

2010 AWARDS

Overall Supplier of the Year – Visy

Account Management: Andrew Lawrence (Visy)Runners Up: Marietjie Muijs (The Promotions Factory ) and Justin Papps (Mettle)

At Work Business Partner: QANTASRunner Up: National Australia Bank

Customer Service: Scott’s TransportRunners Up: Commonwealth Bank, Orix, Toll

Innovation: DematicRunners Up: Westpac, Skope Industries

Process Improvement: Blake Dawson and Sullivan and CromwellRunners Up: Damco, Voiceplus

Sustainability: Hoshikazi Lancer

2011 AWARDS

Overall Supplier of the Year: Skope Industries

Account Manager: Marietjie Muijs – The Promotions Factory

Trade Equipment: Skope Industries

Packaging and Ingredients: Amcor

Financial Services: AON

Business Services: Spotless

Transport and Logistics: Goldstar

Plant and Equipment: Krones

Information Technology and Telecommunications: Telstra

INNOV8Innov8 is an internal program at CCA which encourages and drives innovation through our business,delivering real value to our business and that of our customers. The program was launched in 2007 throughthe Supply Chain division, receiving 97 nominations from staff.

Since then, Innov8 has continued to grow, resulting in the development and application of a huge range ofinnovations, including improvements to aged stock management reporting, installation of weight detectionsystem on carton sealers and enhancing warehouse pallet capacity.

2010 marked a new chapter, with 3000 nominations coming in from our people across the business,including our Distribution, Sales, Human Resources and Packaging teams.

Innov8 2012 Awards2010 Supreme Innov8 Winner

National Office – Paul Finucci & Cuneyt Oter for Aged Stock Management Reporting.

Distribution – Paul Donaldson, Mitchell Kennedy, Rachel Pugh for the Hi-Vis Trolley.

Project Zero – Rhett Appleyard & Vireena Peacock for Operational Readiness Program (part of Blowfillproject).

Product packaging – Craig Walker, Hamed Vakilian and Martin Orzinski for Mount Franklin lightweightsustainable packaging.

Queensland – Jessica Andrew for Production Line Manager Leadership training.

South Australia and the NT – Steve Coats & Colin Matthews for Installation of Weight Detection Systemon BIB Carton Sealer.

Victoria – Ron Hudson for Planograms made easy.

Western Australia – Bill Mangan, Andrew Greaves, Craig Lloyd, David Giancola, Todd Mountford andPhill Parr for Glue Nozzle Position Changeovers.

NSW – Tom Cresswell for Product Information Terminal.

Innov8 THEME – Andrew Brown and the WA team.

Innov8 2011 Awards2011 Innov8 Grand Champion and winner of the inaugural Robert Woodruff Trophy:

Julian Train, On Premise Senior Channel Manager, for the FORMULA app.

To Learn Award – James Lane, General Manager of Strategy and Marketing

Best Theme Award – FaCT team for Mission Impossible.

Partners Innovation Award – Jasmin Vinculado, TCCC Group Marketing Manager – Sparkling Beveragesfor ‘Coke Connect’ .

Engagement Award – Karlo Briski, Victorian Capability Coordinator, for ‘Minisodes’ .

Safety Award – Nigel Reeves, Queensland Technical Manager, for Plastic Barriers.

Sustainability Award – Camelia Sofrone, Victorian Coke Vending Account Manager, for The GreenMachine.

Customer-Centricity Award – Julian Train, On Premise Senior Channel Manager, for FORMULA app.

Winning Revenue Award – Moise Wakim, NSW Relief Business Development Executive, for AutomaticDaily Planner ADP.

Efficiency Award – Andrew Hurba, WA EQS Process Manager, for Equipment Receipt AutomationSystem.

CCA Customer Innovation Award – Ian Kingham, ALH Hotel Group National Merchandise Manager, forthe OPEG program innovations.

CASE STUDYMOUNT FRANKLIN

LEADING THE WAY IN SUSTAINABILITYFew beverage products tell the sustainability story like Mount Franklin spring water – it’s reduced its carbonfootprint by more than 20% and it’s donated more than $1.35 million towards breast cancer research andsupport from 2006 to the end of 2011.

Mount Franklin was one of Australia’s Most Trusted brands in 2010 (Milward Brown survey) – and one ofonly two Australian brands on the Top 10 list.

MOUNT FRANKLIN EASY-CRUSH BOTTLE – GOLD SUSTAINABILITY AWARDMount Franklin’s 600 ml PET plastic bottles are now the lightest spring water bottles manufactured inAustralia. In March 2011, the Mount Franklin Easy-Crush Bottle, made with 35% less PET resin than it wasin the previous 12 months, was launched in the Australian market to very good consumer response.

A 2011 Master Thesis study of the new bottle self-manufacture technology at the Northmead, Sydney facilityfound that the technology has delivered a 22% reduction in the carbon footprint for every beveragecontainer on average - including the Mount Franklin Easy-Crush Bottle which at 13.1 grams, is the lightest ofall our beverage bottles. (Source: Martina Birk – MSc Thesis “Case study- Coca-Cola Amatil, Australia:Comparison of carbon footprint converter model v blow-fill technology for PET bottles” August 2011).

This is equivalent to 1700 cars being removed from the roads per year.

Mount Franklin’s carbon footprint is arguably one of the lightest of any beverage in Australia – because :

Significantly reduced raw material (PET resin) used in bottle manufacture

CCA’s spring water sources located within only two hours drive of our bottling facilities

No heating or cooling is utilised in the bottling process.

The Mount Franklin Easy-Crush Bottle won Gold in the Sustainability category of the 2011 AustralianPackaging Design Awards in October 2011.

The judging comments stated: “The Mount Franklin Easy-Crush Bottle successfully promotes responsiblebehaviour by consumers. The simple twist and crush process reduces the size and amount of space neededto transport it to recycling centres. The increased crushability, material use reduction and increase in verticalload and stacking stability, has this entry ticking the sustainability boxes along its entire life cycle.”

MOUNT FRANKLIN – SUPPORTING WOMEN WITH BREAST CANCERMount Franklin first began fund-raising for breast cancer in 2006, with a marketing campaign that saw thebrand turn its caps pink for the month of October, Breast Cancer Awareness Month.

After a successful four year partnership with the National Breast Cancer Foundation which raised funds forbreast cancer research, in 2010 Mount Franklin turned its caps hot pink and began a new partnership withthe McGrath Foundation to raise funds for breast care nurses across Australia.

The McGrath Foundation has helped support more than 10,000 Australian women and their families throughbreast cancer, and placed 63 breast care nurses into communities.

CCA runs a national competition for our sales teams so grow Mount Franklin sales during October, with eachstate competing for the right to receive a McGrath Foundation specialist breast care nurse in their state, fullyfunded by Mount Franklin and CCA for three years .