1

1October 2005

South Korea

Peter KellyRegional Director - Asia

13 October 2005

2October 2005

Introduction

Management experience over 18 yearsTCCC roles in Planning and Field OperationsState Roles as Sales Manager and State Operations ManagerNational Key Accounts & General Manager, SupermarketsDirector, Business DevelopmentDirector, Operations and Logistics

Initial Observation

The markets are tough but with the right focus the opportunity is clearly there

2

3October 2005

Korea

New Executive Team, focused on the simple drivers of growth that will turn the business around

The key issues are being addressed

Results in Qtr 3 are very encouraging – best Qtr for growth since the start of 2004

CCA and TCCC are confident that investments being made in Korea will deliver improved performance

4October 2005

Our expectations for Korea in the 2nd half…

2005 2nd Half Volume Growth 5-7%

2005 2nd Half EBIT KRW broadly in line with last year

Examples of trade execution for full year 2005

Net New Outlets 16,000+

Net Coolers placed 21,000+

Minute Maid 15% of 100% Juice segment

3

5October 2005

Consumer Spending and CCA sales are highly Correlated – both are returning to growth

-1%

2%

-1%

8%5%

123122

140144

122

-5%

3%

11%

19%

27%

35%

2001 2002 2003 2004 2005 June

Perc

enta

ge

90

102

114

126

138

150

Mill

ion

Uni

t Cas

es

Consumer Spending

Source : The Bank of Korea

Sales Volume

6October 2005

Consumer confidence appears to be recovering

Source : Korea National Statistical Office

80

90

100

110

120

Jul 99 Jan 00 Jul Jan 01 Jul Jan 02 Jul Jan 03 Jul Jan 04 Jul Jan 05 Jul

Inde

x

Korean Consumer Confidence Index

4

7October 2005

GDP per capita growth, at 18% is growing faster than both consumer confidence and spending

7,355

9,438

10,841

10,160

11,499

12,720

14,162

16,740

3000

6000

9000

12000

15000

18000

1998 1999 2000 2001 2002 2003 2004 2005 (E)

GDP per capita

(Uni

t: M

illio

n U

S$)

Source : The Bank of Korea, 2005(E) from Economic Intelligence Unit

(Unit: %

)

+18.2%

+11.3%

+10.6%

+13.2%-6.3%

+14.9%

+28.3%

8October 2005

Competitors show 10% EBIT margins are achievable

Biggest competitor, Lotte H105 results

Revenue declined by -9%

EBIT Margin at 10% down from 16%

EBIT Margin decline driven by un-recovered COGS

Operating income down by 45%

Implication for CCA Korea – we believe an opportunity exists to improve pricing and recover COGS increases, however we will not be uncompetitive

5

9October 2005

It’s a competitive market – CCA is holding share

24.4% 25.2%24.9% 25.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

June / July YTD JJ

2004 2005

(Source: AC Nielsen)

CCA NARTD Share

10October 2005

Recap - CCA Performance in the 1st Half

Brand Coke related volume/pricing accounts for 2/3rds of our EBIT decline. (Coke 1st Half -10% vs Qtr 3 +4%)

We will be managing both our costs and pricing tightly in an effort to recover COGS inflation

There is a lag in getting the benefits from our increased investments in Direct Marketing Expense and Coolers

HY 05 HY 04 % Chg

Volume (m unit cases) 63 64 -1%

Sales revenue / case KRW 3,859 3,902 -1%EBIT KRW (m) 346 10,581 -97%

6

11October 2005

Significant increase in TCCC marketing investment

2005 TCCC direct marketing investment is double 2004 levels

CCA expects at least this level of brand investment to continue for 2006

Both companies are aligned around fewer, bigger activities on the core brands 2006

12October 2005

Excellent Main Media on air since April

Eg Supporting our E&D Focus

7

13October 2005

Minute Maid - We are now in all the major categories

0%

3%

6%

9%

12%

15%

Cola Flavoured CSD Cider Fruit Juice100%

Fruit Juice -Non 100%

Sports

Perc

enta

ge o

f NA

RTD

Mar

ket

CCA Category

Korea Key Categories

(Source: AC Nielsen)

14October 2005

Update on the activation of the 5 Pillars

Our trade execution results are on track for 2005 across the 5 pillars

1. Product and pack innovation

2. Non-carbonated beverage and food expansion

3. Growing product availability through cold drink placements and outlet expansion

4. Customer service improvement

5. Revenue management and cost discipline

8

15October 2005

New Brands and Packs delivering growth

Our brands are returning to growth and profit for our retailers

Non-Carbonate Innovation

3 New Non-Carb Brands

Minute Maid

Minute Maid Fresh Mix

Powerade Ionade

10 New Non-Carb Brand / Flavour Extensions

Nestea Lemon Green and Ice Rush

Minute Maid Tomato and Grape

Nescafe Mistra (6 flavours)

16October 2005

Non Carbonates - Minute Maid doing well

9.4

15.2

1.1

19

24

3

0

5

10

15

20

25

30

FM05 AM05 JJ05

Sales Share in 100% Fruit Juice Availability

15% Share of 100% Juice after 4 monthsRecord Repeat Purchase levels

(Source: AC Nielsen)

9

17October 2005

Minute Maid – Getting the Key Components Right

Innovative product range and packsHuge sampling campaign 500,000+ ConsumersExcellent advertising and Media weightsExcellent execution and trade support

18October 2005

With Food – Eating & Drinking sales up 28% YTD

Menu boards, branding, staff incentives and Combo mealsBuilding the connection between Korean Food and CSD’s

10

19October 2005

46,712 46,47649,698 50,375

53,94357,219

62,71265,014

76,499

70,106

9.9 9.810.4 10.5

11.211.9

13.013.5

14.5

15.8

0

20,000

40,000

60,000

80,000

100,000

Dec 01 Dec 02 Dec 03 Mar 04 Jun Sep Dec 04 Mar 05 Jun Sep0

2

4

6

8

10

12

14

16

18

Total Cooler in Market (# of unit)

Cooler Penetration per 10k Population

Coolers drive consumption More is required to capture the opportunity

Cold drink – By December 21,000 new coolers

20October 2005

0

30,000

60,000

90,000

120,000

Jan 02 Jul Jan 03 Jul Jan 04 Jul Jan 05 Jul0

4,000

8,000

12,000

By Year end 16,000 more customers than 2004

Total

E&D

Super

Wholesale

M&P

CVSHyper

Active Outlet Numbers

Total Outlets

11

21October 2005

Product availability - Forward inventory drives sales

We have gained forward inventory share of NARTD and are targeting 10% more cases on the shop floor

22.6%

22.3%

10%

20%

30%

Jan 02 Jul Jan 03 Jul Jan 04 Jul Jan 05 Jul

CCA Forward Inventory Share

(Source: AC Nielsen)

22October 2005

Forward Inventory- attractive merchandising

12

23October 2005

Quality availability - 135 Model Markets +35% up

We now have 135 model markets up and running in Korea

They prove again that superior execution can drive incremental beverage sales for all customers in a region

The model markets are a test bed for our trade marketing concepts and training ground for our sales employees

24October 2005

Customer Service Improvements

We are focused on driving customer volume and profit and giving the customer a greater voice in our business

Customer and category business management

Customer Satisfaction Call program

Servicing the needs of smaller outlet

13

25October 2005

Efficiency and Cost Reduction – an opportunity

When benchmarked against comparable CCA operations, Korea has a KRW 20b higher indirect cost base

Through a combination of workplace reform, redeployment and downsizing we can begin to close this gap

Despite the historically difficult industrial relations environment in Korea, there is a general consensus among our employees for the need for change

Our preference is to retrain and redeploy people into market facing roles rather than dramatically downsize the organisation

The success of our suggested workplace reforms will determine the eventual number of employees our business can sustain, any restructuring costs and the associated savings

26October 2005

Korean Nationals now make up 2/3rds of the Executive Team

14

27October 2005

Our expectations for Korea in the 2nd half…

2005 2nd Half Volume Growth 5-7%

2005 2nd Half EBIT KRW broadly in line with last year

28October 2005

Our plans for 2006

Major Investments in Marketing, Trade and Product innovation behind Coke and Minute Maid

1 Major Non-Carbonate New Product Launch

Cooler penetration increasing to 20 per 10K population

CCA executing in 18% of all outlets

Workplace reforms targeting indirect savings

Redeployment of up to 200 people to market facing roles