2016 Integrated Annual Report

Entering the
growth era
2015 Integrated Annual Report
About our report Key highlights for the year
The 2016 Integrated Annual Report We announced our financial results for the year ended 31 December 2016
(Annual Report) consolidates on16 February 2017. In addition to the reported and comparable metrics we highlight
CocaCola HBC AGs UK and belowfrom these financial results, we report on our progress towards our 2020 target
Swiss disclosure requirements KPIson pages 14-15.
while meeting the disclosure
requirements for its secondary listing
on the Athens Exchange and the
sustainability reporting standards. Volume Net sales revenue
For more information about our (m unit cases) (m)

2,058 6,219
Annual Report, see page 212.

Contents
Strategic Report
2015: 2,055 2015: 6,346
1 Entering the growth era
2 Our business
6 Chairmans statement
8 Business model EBIT Comparable EBIT1
10 Chief Executive Officers Q&A
12 Our strategy and KPIs
(m) (m)

506 518
16 Managing risk and materiality
26 Market review
28 Established markets
30 Developing markets
32 Emerging markets 2015: 418 2015: 473
34 People
38 Community trust
42 Consumer relevance
46 Customer preference Comparable FX-neutral net
49 Cost leadership
EBITmargin1 sales revenue per
54 Financial review
59 Viability Statement (%) unit case1 ()

Corporate Governance
60
64
88
Board of Directors
Corporate Governance Report
Directors Remuneration Report
8.3
2015: 7.5
3.02
2015: 2.94
107 Statement of Directors Responsibilities

Financial Statements
109 Independent Auditors Report Comparable Net profit
114 Financial Statements
120 Notes to the Financial Statements
net profit1 (m) (m)

Swiss Statutory Reporting

178 Report of the statutory auditor on
CocaCola HBC AGs consolidated
financial statements
352
2015: 314
344
2015: 280
184 Report of the statutory auditor
on CocaCola HBC AGs financial
statements
187 CocaCola HBC AGs financial Comparable earnings Basic earnings
statements per share1 () per share ()
197 Report of the statutory auditor on

0.972 0.949
theStatutory Remuneration Report
198 Statutory Remuneration Report

Supplementary Information
202 Alternative performance measures 2015: 0.864 2015: 0.771
206 Assurance statement
209 Shareholder information

Glossary 1. For details on APMs refer to Alternative Performance Measures section

 Coca-Cola HBC
2016 Integrated Annual Report 1

Strategic Report
Corporate Governance
Entering the

Financial Statements
growth era
2YHUVHYHUDO\HDUVDQGLQDGLFXOWH[WHUQDOHQYLURQPHQWZHKDYH

Swiss Statutory Reporting

FUHDWHGDPRUHHFLHQWDQGVWURQJHUEXVLQHVVWKDWLVQRZSULPHG
IRUJURZWKLQLPSURYLQJPDUNHWFRQGLWLRQV:HDUHEHQHWLQJ
IURPWKHXQGHUO\LQJVWUHQJWKVRIRXURUJDQLVDWLRQLQFOXGLQJWKH
H[LELOLW\WRUHVSRQGWRHYROYLQJFRQVXPHUWUHQGVDQGDG\QDPLF
UHWDLOODQGVFDSH
:HDUHH[FLWHGDERXWWKHSRWHQWLDORIRXUEXVLQHVVDQGZHDUH
FRQGHQWLQLWVIXWXUH3OHDVHUHDGRXU,QWHJUDWHG$QQXDO
5HSRUWWRQGRXWPRUHDERXWRXUQHZHUDRIJURZWK
Supplementary Information

Dimitris Lois Anastassis G. David

&KLHI([HFXWLYH2FHU Chairman

COC016_.indb 1 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report

We are a
stronger
business
:HKDYHFRQWLQXRXVO\LPSURYHGLQQRYDWHGDQGRSWLPLVHGRXU
RSHUDWLRQVWRFUHDWHDOHDQHUDQGPRUHHFLHQWVXVWDLQDEOH
EXVLQHVVDQGFDQQRZWDNHDGYDQWDJHRIWKHLPSURYLQJH[WHUQDO
FRQGLWLRQVWRDFFHOHUDWHJURZWK

5HODWLRQVKLSZLWK
7KH&RFD&ROD&RPSDQ\
We have partnered with The Coca-Cola Company 'LYHUVHSRUWIROLRRI
IRUbRYHU\HDUVDQGZHDUHSURXGWRFRPELQHWKHLU ZRUOGVOHDGLQJEUDQGV
LQVLJKWVUHVRXUFHVDQGH[SHULHQFHZLWKRXURZQ
:HSURGXFHVHOODQGGLVWULEXWHWKH
H[SHUWLVHLQERWWOLQJGLVWULEXWLRQDQGVDOHV ZRUOGVbPRVWUHFRJQLVHGEHYHUDJHEUDQGV
7KHbPDUNHWGRHVQWVWDQGVWLOODQGFRQVXPHU
GHPDQGVDUHFRQVWDQWO\FKDQJLQJVRZHYDOXH
H[LELOLW\KLJKO\DQGDGDSWRXUSURSRVLWLRQ
WRbUHPDLQUHOHYDQW2XUSURGXFWSRUWIROLR
LVbXQLTXHZLWKVWLOOGULQNVDFFRXQWLQJIRU

 6WLOOGULQNVLQEQRIYROXPH
6WLOOGULQNVLQ
EQRIYROXPH




Sparkling beverages : 90% Sparkling beverages : 62% Juice : 7%

Water : 6% Water : 18% RTD tea : 4%
Other : 4% Low- and no-calorie Energy and other : 1%
sparkling beverages : 8%

(QJDJHGSHRSOH 6WURQJEDODQFHVKHHW ,QGXVWU\OHDGHU

:HKDYHUREXVWZD\VRIDVVHVVLQJ
HPSOR\HHHQJDJHPHQWUHJXODUO\2XU
RYHUDOOVFRUHLQUDWHVKLJKO\ZLWKLQ
RXUSHHUJURXS
:LWKDVKDUSIRFXVRQZRUNLQJFDSLWDO
PDQDJHPHQWDQGDGLVFLSOLQHGDSSURDFK
WRFDSLWDOH[SHQGLWXUHFRPELQHG
ZLWKFRQVLVWHQWFDVKFRQYHUVLRQZH
KDYHVWUHQJWKHQHGRXUEDODQFHVKHHW
:HDUHWKHLQGXVWU\OHDGHUDPRQJVWDOO
EHYHUDJHFRPSDQLHVLQWKH'RZ-RQHV
:RUOGDQG(XURSH6XVWDLQDELOLW\,QGLFHV
DQGKDYHEHHQVLQFH

88% WLPHV 3 years

(PSOR\HHHQJDJHPHQW 1HWGHEWWRFRPSDUDEOH(%,7'$UDWLR

COC016_.indb 2 3/16/17 2:31 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
/HDQPDQXIDFWXULQJIRRWSULQW 3ODQWVDFURVV :DUHKRXVHVDQG )LOOLQJ
RXUPDUNHWV GLVWULEXWLRQFHQWUHV lines
:HRSHUDWHLQDYDVWWHUULWRU\VWUHWFKLQJIURP5XVVLDWR1LJHULD

  
:KLOHbSURYLGLQJXVZLWKRSSRUWXQLW\WKLVIRRWSULQWDOVRFKDOOHQJHV
XVWRbFRQWLQXDOO\RSWLPLVHRXURSHUDWLRQDOLQIUDVWUXFWXUH6LQFHWKH
JOREDOQDQFLDOFULVLVRXUZRUNKDVLQFOXGHGVLJQLFDQWFRQVROLGDWLRQ
RIbRXUbSURGXFWLRQLQIUDVWUXFWXUHFUHDWLQJPHJDSODQWVZLWKRXW
VDFULFLQJFDSDFLW\ 5HGXFWLRQLQQXPEHUVLQFH

  

Corporate Governance
(PHUJLQJPDUNHWV
Population: 428 million
GDP per capita: US$5,020
9ROXPH
PXF

Financial Statements
(VWDEOLVKHGPDUNHWV
Population: 91 million
GDP per capita: US$36,349
9ROXPH
PXF
'HYHORSLQJPDUNHWV
Population: 76 million

Swiss Statutory Reporting

GDP per capita: US$13,861

9ROXPH
PXF
$OHDGLQJERWWOHU
:HDUHDOHDGLQJERWWOHUZLWKVDOHVRIPRUHWKDQ
ELOOLRQXQLWFDVHVDQQXDOO\:HKDYHRSHUDWLRQV
LQbFRXQWULHVVSDQQLQJWKUHHFRQWLQHQWVUHDFKLQJ
PLOOLRQSHRSOH7KHbRSSRUWXQLW\ZHVHHLV
Supplementary Information

VXSHULRUEXVLQHVVJURZWKSDUWLFXODUO\WKURXJKRXU
SUHVHQFHLQbIDVWJURZLQJHPHUJLQJPDUNHWV

5LJKWVL]HGFRVWEDVH
:HULJKWVL]HGRXURSHUDWLQJFRVWEDVHLQFOXGLQJDGMXVWLQJ
RXUSURGXFWLRQDQGORJLVWLFVLQIUDVWUXFWXUHDQGKDUQHVVLQJ
WHFKQRORJ\DQGVWDWHRIWKHDUWV\VWHPVWRFRQVROLGDWHEDFN
RFHIXQFWLRQVLQWRVKDUHGVHUYLFHFHQWUHV
&DSDELOLW\WRH[HFXWHLQWKHPDUNHW
%\ZRUNLQJZLWKRXUFXVWRPHUVWRVDWLVI\FRQVXPHU
QHHGVDQGPD[LPLVHGHPDQGIRURXUSURGXFWV
ZHKHOSJURZWKHLUEXVLQHVVHVDQGRXUV

ESV 43%
)DOOLQFRPSDUDEOHRSHUDWLQJH[SHQVHVDVRIQHW $YHUDJHbVSDUNOLQJGULQNVYROXPHVKDUHLQRXUWHUULWRU\LQ
VDOHVUHYHQXHVLQFH

COC016_.indb 3 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report

We are driving
growth to
new levels
7KHLPSURYLQJPDFURHFRQRPLFFRQGLWLRQVLQRXUPDUNHWVPHDQWKDW
ZHbFDQH[SHFWDYROXPHWDLOZLQGLQDGGLWLRQWRWKHJURZWKZHFDQ
DFKLHYHbZLWKRXUHRUWVDQGPRUHVFRSHIRULPSURYLQJWKHSULFHDQG
PL[bRIRXUSURGXFWSRUWIROLRFUHDWLQJPRUHYDOXHWRVKDUHZLWKDOO
RIbRXUVWDNHKROGHUV

,PSURYLQJPDFURHFRQRPLFFRQGLWLRQV
'XULQJWKHSHULRGRXUEXVLQHVVIDFHGXQSUHFHGHQWHGFKDOOHQJHVIURPGHFOLQLQJHFRQRPLHVVLJQLFDQWO\
KLJKHUbLQSXWFRVWVDQGDGYHUVHIRUHLJQH[FKDQJHPRYHPHQWV$FFRUGLQJWRIRUHFDVWVWKHHFRQRPLHVLQRXUIRRWSULQWVKRXOG
LPSURYHIURPRQZDUGVDOEHLWDWDVORZHUSDFHWKDQLQWKHSHULRG*URZWKLQWKHQRQDOFRKROLFUHDG\WRGULQN
1$57'EHYHUDJHVLQGXVWU\LVKLJKO\FRUUHODWHGZLWK*'3SHUFDSLWDJURZWK%DVHGRQRXUIRUHFDVWVWKHQRQDOFRKROLFGULQNV
FDWHJRU\LQRXUJHRJUDSKLFIRRWSULQWVKRXOGJURZE\FSHUDQQXPRQDYHUDJHIURPXQWLO

*'3SHUFDSLWD&$*5
5

0%

-5
2009-2015 actual 2016-2020 forecast

Established Developing Emerging CCHBC

*URZWKH[SHFWHGLQWKH1$57'LQGXVWU\DYHUDJHSD

CCHBC Established markets Developing markets Emerging markets

4% 4% 4% 4%
+1.4% +3.3%
+2.2% +0.9% +2.3%
0% +0.1% 0% +0.3% 0% 0%

-1.0%
-4% -4% -4% -4%
2016-17 2018-20 2016-17 2018-20 2016-17 2018-20 2016-17 2018-20

,0)QRGDWDIRU6LFLO\.RVRYR1RUWKHUQ,UHODQG&RPSDQ\DQG7&&&HVWLPDWHV

COC016_.indb 4 3/16/17 2:31 PM

 Coca-Cola HBC
2016 Integrated Annual Report 5

Strategic Report
2XUDPELWLRQDQGWDUJHWV
/RRNLQJDKHDGZHH[SHFWDQLPSURYLQJH[WHUQDOHQYLURQPHQWWRVXSSRUWJURZWKLQRXUPDUNHWVRYHUWKHSHULRGWR,Q
ZHUHODXQFKHGRXUVWUDWHJLFREMHFWLYHVDQGDQQRXQFHGPHGLXPWHUPJURZWKWDUJHWV

Vision
2XUYLVLRQLVWREHWKHXQGLVSXWHGEHYHUDJHOHDGHULQHYHU\PDUNHWLQZKLFKZHFRPSHWH

Objectives
'ULYHYROXPH )RFXVRQ ,PSURYH ,QYHVWLQ

Corporate Governance
JURZWK YDOXH HFLHQF\ WKHEXVLQHVV

Targets $YHUDJHFXUUHQF\QHXWUDO &RPSDUDEOH2S([DVRI &DSLWDOH[SHQGLWXUHDV

UHYHQXHJURZWK UHYHQXHE\ RIbUHYHQXH

SD  

&RPSDUDEOH(%,7PDUJLQE\ :RUNLQJFDSLWDOOHVVWKDQ

 P

Financial Statements
Enablers (QJDJHGSHRSOH $FWUHVSRQVLEO\

i 6HHPRUHRQSDJHV

Swiss Statutory Reporting

6XVWDLQDELOLW\FRPPLWPHQWV
2YHUWKHODVWIHZ\HDUVZHKDYHFRPPXQLFDWHG Certify all of our
plants in European
VXVWDLQDELOLW\UHODWHGWDUJHWVZLWKDKRUL]RQ Water Stewardship
Take 40% of the
total energy we use
or Alliance for Water
ZKLFKDUHUHOHYDQWWRDOPRVWDOODVSHFWVRIRXUEXVLQHVV Stewardship
from renewable and
clean energy
standard. sources
7KHVHVXVWDLQDELOLW\WDUJHWVIRUPSDUWRIRXU
RYHUDOOVWUDWHJLFSODQWKDWKDVHQDEOHG&RFD&ROD+%& Reduce carbon
Recover for
recycling an average
emissions
WREHFRPHOHDGHULQVXVWDLQDELOLW\DPRQJEHYHUDJH intensity in the
of 40% of total
packaging we
value chain by
FRPSDQLHVDQGUHHFWRXUGHWHUPLQDWLRQWRJURZRXU 25%
introduce to our
markets
EXVLQHVVUHVSRQVLEO\SURWDEO\DQGVXVWDLQDEO\

i 6HHRXUSURJUHVVRQSDJHV
Source 20% of the
Supplementary Information


total PET we use
Reduce direct from recycled PET
carbon emissions and/or PET from
intensity by 50% renewable material

6XVWDLQDELOLW\
FRPPLWPHQWV

Reduce Reduce packaging

water use by 25% per litre of
internally by beverage produced
30%

Double the Certify over 95% of

number of our key agricultural
employees taking ingredients against
part in volunteering Invest 2% of our the Coca-Cola
initiatives during annual pre-tax Systems Sustainable
work time to 10% SURWLQ Agricultural Guiding
of our people communities Principles

COC016_.indb 5 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&KDLUPDQVVWDWHPHQW

2YHUVHHLQJDQ
'HDU6WDNHKROGHU
,QP\UVWOHWWHUWR\RXDV&KDLUPDQ
,bWDNHJUHDWSULGHLQUHSRUWLQJRQWKHJRRG
SURJUHVVZHKDYHPDGHLQQHWXQLQJRXU

HUDRIJURZWK
,QWHJUDWLQJHQWUHSUHQHXULDOGULYHDQGOHDGHUVKLSZLWK
ULVNPDQDJHPHQWLVYLWDODVZHVWHHURXU&RPSDQ\
WKURXJKLWVQH[WVWDJHRIJURZWK
JRYHUQDQFHDQGDFKLHYLQJVXVWDLQDELOLW\
DQGQDQFLDOWDUJHWV'HOLYHULQJWKHVH
VWURQJRSHUDWLRQDODQGQDQFLDOUHVXOWVLQ
WKHIDFHRIRQJRLQJDGYHUVLW\LVWHVWDPHQW
WRWKHYDOXHRIWKHFOHDUVWUDWHJ\SXUVXHG
DWDOOOHYHOVRIWKHEXVLQHVVWREXLOGRQWKH
VWURQJIRXQGDWLRQVZHKDYHHVWDEOLVKHG
RYHUWKHFRXUVHRIWKHODVWVHYHUDO\HDUVb
KLJKOLJKWV
7KH
7KHUHZDVDUHDOVHQVHRIFKDQJHDQG
RSWLPLVPLQWKHEXVLQHVVLQ:LWK
RSWL
DUH
DUHQHZHGIRFXVRQUHYHQXHJURZWK
PDQDJHPHQWRXUSHRSOHKDYHDVWURQJ
PDQ
EHOLH
EHOLHIWKDWZHFDQLPSURYHWKHYDOXHZHJHW
IURPHYHU\FDVHZHVHOOE\XQGHUVWDQGLQJ
IURP
RXU
RXUFRQVXPHUVSUHIHUHQFHVDQGZRUNLQJ
ZLWKRXUFXVWRPHUV7KHUHFRYHU\LQ
ZLWK
RXU
RXUPDUJLQVLQRXU(XURSHDQPDUNHWV
VWUHQJWKHQHGRXUFRQYLFWLRQWRFRQWLQXH
VWUH
RSWLPLVLQJRXUSURGXFWLRQORJLVWLFVDQG
RSWL
URXWHWRPDUNHWHOVHZKHUHSDUWLFXODUO\LQ
URXW
5XVVLDDQG1LJHULD,QYLJRUDWHGE\DQRWKHU
5XV
year of improvement in operational and
QD
QDQFLDOUHVXOWVWKH%RDUGSULRULWLVHG
PHGLXPWHUPVWUDWHJ\JRYHUQDQFH
PHG
DQGULVNPDQDJHPHQWWRVWHHUWKH
DQG
EXVLQHVVWKURXJKDQHZHUDRIJURZWKb
EXV

$YDOXHVEDVHGFXOWXUH
$Y
2XU
2XU&RPSDQ\KDVEHHQVXFFHVVIXOE\
VHUY
VHUYLQJWKHORQJWHUPLQWHUHVWVRIDOO
VWDN
VWDNHKROGHUVZKLOHFRQVLVWHQWO\GHOLYHULQJ
VWUR
VWURQJQDQFLDOSHUIRUPDQFHLQWKHVKRUW
WHUP
WHUP,QWKLVUHSRUWZHGHVFULEHRXU
EXV
EXVLQHVVPRGHODQGKRZZHRSHUDWH
WKH
WKHPDUNHWVZHVHUYHDQGRXUVWUDWHJ\
DQG
DQGSULRULWLHV:HDOVRH[SODLQKRZZH
VHUY
VHUYHWKHLQWHUHVWVRIRXUFXVWRPHUVDQG
FRQ
FRQVXPHUVDQGWKHFRPPXQLWLHVLQZKLFK
ZH R
ZHRSHUDWH2XUDSSURDFKLVLQWHJUDWHG
LQWR
LQWRKRZZHOHDGDQGPRWLYDWHRXUSHRSOH
DQG
DQGXVHRXUQDQFLDOSK\VLFDODQGKXPDQ
DVVH
DVVHWV(HFWLYHFRUSRUDWHJRYHUQDQFH
LVDE
LVDERXWLQWHJUDWLQJHQWUHSUHQHXULDOGULYH
DQG
DQGOHDGHUVKLSZLWKHHFWLYHRYHUVLJKWDQG
PRQ
PRQLWRULQJVHWWLQJWKHFRUSRUDWHFXOWXUH
WR P
WRbPDLQWDLQKLJKVWDQGDUGVRISHUIRUPDQFH
DQG
DQGFRQGXFWDVZHOODVPDLQWDLQLQJJRRG
QD
QDQFLDOFRQWURODQGULVNPDQDJHPHQW
:LWK
:LWKLQWKLVUHSRUWZHGHVFULEHKRZZH
DFK
DFKLHYHHHFWLYHLQWHJUDWLRQRIDOOWKHVH
YLWDOHOHPHQWV:HDUHSURXGWRVHOOD
YLWD
ZLGH
ZLGHUDQJHRIH[FHOOHQWSURGXFWVIURP
RXU
RXUSRUWIROLRRIZRUOGIDPRXVEUDQGV

COC016_.indb 6 3/16/17 2:31 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

2XUYDOXHVEDVHGFXOWXUHHQFRXUDJHV
FRQWLQXDOLPSURYHPHQWLQFRQVXPHUV
H[SHULHQFHRIRXUSURGXFWVDQGFRQVWDQW
IRFXVRQLPSURYLQJWKHZD\RXUEXVLQHVV
ZRUNV:HVHWKLJKVWDQGDUGVIRULQWHJULW\
DXWKHQWLFLW\DQGZD\VRIZRUNLQJDQG
RXUFXOWXUHVXSSRUWVKDUGZRUNUHVSHFW
DQGWDNLQJRZQHUVKLSHQDEOLQJHYHU\RQH
Strategic Report
%RDUGSULRULWLHVIRU
&RQWLQXHRYHUVLJKWRIUHJXODWRU\DQGFRPSOLDQFHULVN
0RQLWRUWKHLPSOHPHQWDWLRQRIWKH*URXSVLQWHJUDWHGVXSSO\FKDLQ
LQIUDVWUXFWXUHRSWLPLVDWLRQ
$OLJQLQJZLWK7KH&RFD&ROD&RPSDQ\LQWKHLPSOHPHQWDWLRQRIWKHNH\
VWUDWHJLFbSULRULWLHVRIWKH*URXS

Corporate Governance
DVVRFLDWHGZLWKRXUEXVLQHVVWRWDNHSULGH 2YHUVHHLQJVWUDWHJ\LQRUGHUWRDFKLHYHWKH*URXSVJURZWKREMHFWLYHV
LQWKHLUZRUN:HKRSHWKDWDV\RXUHDGWKH
&RQWLQXHWRIRFXVRQOHDGHUVKLSDQGGHYHORSPHQWRIWDOHQWV
LQGLYLGXDOVHFWLRQVRIWKLVUHSRUW\RXZLOOJHW
DVWURQJVHQVHRIRXUFRUSRUDWHFXOWXUHDQG
KRZLPSRUWDQWLWLVWRXVDOOb

0DNLQJDQHWSRVLWLYHLPSDFW &KDQJHVLQJRYHUQDQFH 3URSRVHGGLYLGHQGUHHFWV

7KHVXFFHVVRIRXUEXVLQHVVLVODUJHO\ 'XULQJWKH\HDUWKH%RDUGDQGLWV SURJUHVV
GHSHQGHQWRQWKHVWUHQJWKDQGZHOO FRPPLWWHHVXQGHUWRRNDQH[WHUQDOO\ 2QEHKDOIRIWKH%RDUG,ZRXOGOLNHWR
EHLQJRIWKHFRPPXQLWLHVZHDUHSDUWRI IDFLOLWDWHGHYDOXDWLRQLQDGGLWLRQWR FRQJUDWXODWHRXUHPSOR\HHVRQWKH
:HKDYHWKHUHIRUHZRUNHGFRQVLVWHQWO\ PRQLWRULQJDQGHQVXULQJWKH*URXSV H[FHOOHQWSURJUHVVWKH\PDGHRQDOOIURQWV

WRHQVXUHWKDWRXUEXVLQHVVJHQHUDWHV
DSRVLWLYHVRFLRHFRQRPLFFRQWULEXWLRQ
DQGLPSURYHVRYHUDOOTXDOLW\RIOLIHDFURVV
RXUPDUNHWV7RHQVXUHRXUEXVLQHVV
KDVDQHWSRVLWLYHLPSDFWVXVWDLQDELOLW\
LQLWLDWLYHVDUHSULPDULO\IRFXVHGLQWKUHHNH\
DUHDVPLQLPLVLQJHQYLURQPHQWDOLPSDFW
FROODERUDWLQJZLWKRXUSDUWQHUVWRGHYHORS
DVXVWDLQDEOHYDOXHFKDLQDQGVXSSRUWLQJ
DQGGHYHORSLQJFRPPXQLW\ZHOOEHLQJ
,QDQbHRUWWRFRPEDWXQHPSOR\PHQW
LQZHHPEDUNHGRQDQDPELWLRXV
VWUDWHJLFSURJUHVV7KH%RDUGDSSRLQWHG
$KPHW%R]HU%LOO'RXJODV5HWR)UDQFLRQL
DQG5\DQ5XGROSKDVQHZQRQ([HFXWLYH
'LUHFWRUVIROORZLQJWKHUHWLUHPHQWIURP
WKH%RDUGRI*HRUJH$'DYLG,ULDO)LQDQ
6LU0LFKDHO/OHZHOO\Q6PLWKDQG1LJHO
0DFGRQDOG7KH%RDUGLQUHFRJQLWLRQRIKLV
H[FHSWLRQDOFRQWULEXWLRQDQGORQJVWDQGLQJ
GHGLFDWLRQWRWKH*URXSQDPHG*HRUJH$
'DYLG&KDLUPDQ(PHULWXVRIWKH&RPSDQ\
ZLWKHHFWIURP-XQH,ZRXOGOLNH
WRDOVRSHUVRQDOO\WKDQN,ULDO6LU0LFKDHO
Financial Statements
LQbDQGHQFRXUDJHWKHPWRFRQWLQXH
WRbEHLQQRYDWLYHDJLOHDQGDPELWLRXV,bZRXOG
DOVROLNHWRWKDQN'LPLWULVDQGKLVWHDPIRU
WKHLUHRUWVLQGULYLQJRXUEXVLQHVVIRUZDUG
,DPFRQGHQWWKDWZHZLOOFRQWLQXHRXU
SURJUHVVLQLQOLQHZLWKRXU
VWUDWHJLFSODQ
,QOLJKWRIRXU&RPSDQ\VSHUIRUPDQFH
DQGRXUFRQGHQFHLQPDQDJHPHQWV
DELOLW\WRFRQWLQXHWRJURZWKHEXVLQHVV
,DPSOHDVHGWRUHSRUWWKDWWKH%RDUGLV

Swiss Statutory Reporting

SURJUDPPHWRHPSRZHU\RXWKLQRXU
PDUNHWV,bHQFRXUDJH\RXWRUHDGDERXW
WKLVDQGRXURWKHUVXVWDLQDELOLW\LQLWLDWLYHV
WKURXJKRXWWKLVUHSRUW2XUHRUWVLQWKH
DUHDRIVXVWDLQDELOLW\DUHEHLQJUHFRJQLVHG
LQWHUQDWLRQDOO\DQG,DPSDUWLFXODUO\SURXG
RI&RFD&ROD+%&EHLQJQDPHGLQGXVWU\
OHDGHUDPRQJVWEHYHUDJHFRPSDQLHV
LQWKH'RZ-RQHV:RUOGDQG(XURSH
DQG1LJHOIRUWKHLURXWVWDQGLQJVXSSRUW
DQGJXLGDQFHWRWKH%RDUGDOOWKHVH\HDUV
%HWZHHQWKHPWKHQHZ%RDUGPHPEHUV
$KPHW%LOO5HWRDQG5\DQEULQJDZHDOWK
RIUHOHYDQWQDQFLDOOHJDORSHUDWLRQDODQG
LQWHUQDWLRQDOH[SHULHQFHDVZHOODVGLYHUVH
VNLOOVDQGSHUVRQDOLWLHVWRWKH%RDUG7KH
%RDUGKDVFRQFOXGHGWKDW%LOODQG5HWRDUH
LQGHSHQGHQWLQFKDUDFWHUDQGMXGJHPHQW
SURSRVLQJDIXOO\HDUGLYLGHQGSD\PHQW
RI(XURVSHUVKDUH7KLVUHSUHVHQWV
DLQFUHDVHFRPSDUHGWRWKH
GLYLGHQGSDLGRXWIURPSURWV
,ZRXOGOLNHWRWKDQNDOORIRXUVKDUHKROGHUV
IRUWKHLUFRQWLQXHGFRQGHQFHLQRXU
EXVLQHVV,ORRNIRUZDUGWRVHHLQJ\RX
DWWKH$QQXDO*HQHUDO0HHWLQJ
6XVWDLQDELOLW\,QGLFHV'-6,IRUWKHWKLUG and that they meet the independence
FRQVHFXWLYH\HDULQ2XU&RPSDQ\ FULWHULDIRUWKHSXUSRVHVRIWKH8.
LVWKHRQO\EHYHUDJHFRPSDQ\WRKDYH &RUSRUDWH*RYHUQDQFH&RGH
Supplementary Information

DFKLHYHGWKLVGLVWLQJXLVKHGWUDFNUHFRUG

Anastassis G. David
Chairman

0RUHLQIRUPDWLRQ i
6HHPRUHDERXWPDQDJLQJULVNDQGPDWHULDOLW\ S
6HHPRUHDERXWRXUFXOWXUH S
6HHPRUHDERXWRXUQDQFLDOSHUIRUPDQFH S
6HHPRUHLQIRUPDWLRQDERXWRXUJRYHUQDQFH S

COC016_.indb 7 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report

%XVLQHVVPRGHO

2XUEXVLQHVVPRGHOLVDWWKHKHDUWRIHYHU\WKLQJZHGR,WVXSSRUWV
RXUbJURZWKDQGGHQHVWKHDFWLYLWLHVZHHQJDJHLQWKHUHODWLRQVKLSV
ZHGHSHQGRQDQGWKHRXWSXWVDQGRXWFRPHVZHDLPWRDFKLHYHLQ
RUGHUWRbFUHDWHYDOXHIRUDOORIRXUVWDNHKROGHUVLQWKHVKRUWPHGLXP
DQGORQJWHUP

&DSLWDOVHQJDJHG 9DOXHDGGHGE\
+XPDQ :RUNLQJZLWKSDUWQHUV
:HZRUNFRQWLQXDOO\WRGHYHORSWKHFRPSHWHQFLHVFDSDELOLWLHVDQG 2XUSDUWQHUVKLSZLWK7KH&RFD&ROD&RPSDQ\JLYHV
WDOHQWRIRXUSHRSOHDFULWLFDOO\LPSRUWDQWDVVHW XVbH[FOXVLYHULJKWVWRPDQXIDFWXUHVHOODQGGLVWULEXWH
WKHLUEUDQGHGSURGXFWVLQRXUWHUULWRU\7KH\DOVR
SURGXFHDQGVXSSO\RXU&RPSDQ\ZLWKWKHFRQFHQWUDWH
i RUV\UXSWKDWLVWKHPDLQLQJUHGLHQWIRURXUEHYHUDJHV
6HHPRUHRQSDJHV

1DWXUDO
:DWHUHQHUJ\DQGRWKHUQDWXUDOUHVRXUFHVDUHLPSRUWDQWLQSXWVWRRXU
YDOXHFUHDWLRQSURFHVVHVDQGZHVHHNWRXVHWKHPHFLHQWO\ Brand investment
Marketing
The Coca-Cola Company

i 6HHPRUHRQSDJHVDQG
6RFLDODQGUHODWLRQVKLS
6RFLDODQGUHODWLRQVKLSFDSLWDOLQFOXGHVRXUUHSXWDWLRQDQGRXUDELOLW\WR
HDUQDQGPDLQWDLQWKHWUXVWRINH\VWDNHKROGHUV
i 6HHPRUHRQSDJHV
)LQDQFLDO
:HVHHNWRXVHDOOIXQGVHFLHQWO\ZKHWKHUREWDLQHGWKURXJKQDQFLQJ
RUJHQHUDWHGIURPRSHUDWLRQVRULQYHVWPHQWV
6HUYLQJFXVWRPHUVHHFWLYHO\
:HPDQDJHFXVWRPHUUHODWLRQVKLSVDVZHOODV
SURPRWLRQVDQGGLVSOD\VDWWKHSRLQWRIVDOH2XU
FXVWRPHUVUHO\RQXVWRKDYHDIXOOUDQJHRITXDOLW\
SURGXFWVRQWKHVKHOYHVHYHU\GD\VRWKDWWKH\
FDQVDWLVI\FRQVXPHUVUHIUHVKPHQWQHHGV,Q
RUGHUWRJLYHRXUFXVWRPHUVWKHEHVWSRVVLEOH
VHUYLFHZHVHJPHQWHDFKPDUNHWDQGVHUYH
HDFKFXVWRPHUEDVHGRQVL]HDQGQHHGWDNLQJ
LQWRDFFRXQWSUHYDOHQWPDUNHWFRQGLWLRQV
Growth in category
In-market execution
volume

i 6HHPRUHRQSDJHV
:RUNLQJZLWKVXSSOLHUV
,QWHOOHFWXDO :HUHO\RQRXUVXSSO\FKDLQIRUPDQ\W\SHVRILQSXWV
WRRXUEXVLQHVVLQFOXGLQJHTXLSPHQWDQGPDFKLQHU\
2XUNQRZOHGJHEDVHGDVVHWVLQFOXGHRXUEUDQGVDQGEUDQGVZH
DQGFRQVXOWDQF\VHUYLFHVDQGVRIWZDUH3DUWQHULQJZLWK
OLFHQVHDVZHOODVSURSULHWDU\WHFKQRORJ\VWDQGDUGVOLFHQFHV
UHVSRQVLEOHGHSHQGDEOHHFLHQWVXSSOLHUVDOORZVRXU
DQGbSURFHVVHV
&RPSDQ\WRIRFXVRQZKDWZHGREHVWSURGXFLQJDQG
GLVWULEXWLQJEHYHUDJHVWKDWEULQJVPLOHVWRFRQVXPHUV

i 6HHPRUHRQSDJHV

0DQXIDFWXUHG
:HFDUHIXOO\PDQDJHRXUVWRFNRIPDQXIDFWXUHGFDSLWDOLQFOXGLQJ
HTXLSPHQWDQGEXLOGLQJVKHOGWRSURGXFHDQGGLVWULEXWHRXUSURGXFWV
Investment in production
&RVWHFLHQFLHV
optimisation

i 6HHPRUHRQSDJHV
Working capital
Use of cash
management

COC016_.indb 8 3/16/17 2:31 PM

 Coca-Cola HBC
2016 Integrated Annual Report 9

Strategic Report
/HYHUDJLQJ
RXUJURZWK
PRGHO

Corporate Governance
9DOXHFUHDWHG
%\UXQQLQJDSURWDEOHVXVWDLQDEOHUHVSRQVLEOHEXVLQHVVZH
FUHDWHYDOXHZKLFKLVVXEVHTXHQWO\ERWKUHWDLQHGE\RXUEXVLQHVV
PDNLQJLWVWURQJHUDQGVKDUHGZLWKDOORIRXUVWDNHKROGHUV

(PSOR\HHV 'LUHFW
'HYHORSLQJUHFRJQLVLQJDQGUHZDUGLQJ HPSOR\PHQW

Financial Statements
In-store activation Create
RXUSHRSOHVHFXUHVDVNLOOHGDQGPRWLYDWHG
ZRUNIRUFH 
Coca-Cola HBC demand

6HUYLQJFRQVXPHUV &XVWRPHUV 0HWRUH[FHHGHG

DQGFRPPXQLWLHV 2XUHRUWVWRSURGXFHSURGXFWVHFLHQWO\ FXVWRPHUV
:HRHUDUDQJHRIEHYHUDJHV DQGUHVSRQVLEO\EXLOGYDOXHIRURXU H[SHFWDWLRQV
WRVDWLVI\HYROYLQJFRQVXPHU FXVWRPHUVEXVLQHVVHV
SUHIHUHQFHV%\SURYLGLQJSURGXFWV
WKDWPHHWFRQVXPHUQHHGVDQG

RSHUDWLQJDUHVSRQVLEOHVXVWDLQDEOH

Swiss Statutory Reporting

EXVLQHVVZHFUHDWHYDOXHIRUWKH 6KDUHKROGHUV 1HWSURW
FRPPXQLWLHVZKHUHZHRSHUDWH
7KURXJKWKHSURFHVVRIPDQDJLQJDOOLQSXWV
WRRXUEXVLQHVVZHOOZHFUHDWHSURWVZKLFK P
EHQHWVKDUHKROGHUVWKURXJKGLYLGHQG
SD\PHQWVDQGVKDUHYDOXH
Price and mix Grow the
Share gains top-line
improvements

3URGXFLQJ 6XSSOLHUV 6XSSOLHUVSHQG

FRVWHFLHQWO\
8VLQJFRQFHQWUDWHIURP7KH
$VZHFUHDWHYDOXHZHVXSSRUWEXVLQHVVHV
WKURXJKRXWRXUYDOXHFKDLQDQGVXSSRUWMRE P
Supplementary Information

&RFD&ROD&RPSDQ\DQGRWKHU
LQJUHGLHQWVZHbSURGXFHSDFNDJH
DQGGLVWULEXWHSURGXFWV:HSURGXFH
QHDUO\DOORIWKHSURGXFWVZHVHOODWRXU
SURGXFWLRQIDFLOLWLHVWKDWDOVRKDYH
GLVWULEXWLRQFHQWUHVDQGZDUHKRXVHV
8WLOLVLQJWKHVHIDFLOLWLHVZLVHO\KHOSV
XVSURGXFHSURGXFWVUHVSRQVLEO\
DQGLVNH\WRRXUSURWDELOLW\
Leverage
Operating
top-line
expense reduction
growth
Disciplined CapEx Enhanced
investment EBITDA growth
FUHDWLRQEH\RQGRXUEXVLQHVV
&RPPXQLWLHV 7RWDOWD[HV
:KHQRXUEXVLQHVVLVSURWDEOHVXVWDLQDEOH
DQGUHVSRQVLEOHWKHFRPPXQLWLHVZKHUHZH P
RSHUDWHEHQHWWKURXJKMREFUHDWLRQWD[
SD\PHQWVWRJRYHUQPHQWVXVHIXOSURGXFWV
DQGVHUYLFHVDQGPLQLPLVDWLRQRI
Expand
HQYLURQPHQWDOLPSDFW:HDOVRKDYH
margins
Invest DFRPPLWPHQWWRLQYHVWRIbRXUSUHWD[
in the SURWVLQSURJUDPPHVWRVXSSRUW
business FRPPXQLWLHVLQRXUWHUULWRU\

COC016_.indb 9 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&KLHI([HFXWLYH2FHUV4 $

&RQWLQXHG
JRRG
SURJUHVV
LQPDUJLQ
UHFRYHU\
:HKDYHGHOLYHUHGVROLGFXUUHQF\QHXWUDO
UHYHQXHJURZWKDQGDQRWKHU\HDURI
VLJQLFDQWJURZWKLQPDUJLQVDQGSURWV
UHSUHVHQWLQJDVXVWDLQDEOHDQG
ZHOOHVWDEOLVKHGUHFRYHU\

Dimitris Lois
&KLHI([HFXWLYH2FHU

COC016_.indb 10 3/16/17 2:31 PM


<RXIRUHZDUQHGXVLQ
ODVW\HDUVUHSRUWDERXW
LQFUHDVHGYRODWLOLW\LQ
'LGWKHEXVLQHVVVWHSXSWR
WKHFKDOOHQJH"
7KHUHZHUHDQXPEHURIH[WHUQDOIDFWRUV
WKDWSRVHGFKDOOHQJHVWRWKHEXVLQHVV
7KHbHFRQRP\LQRXUODUJHVWPDUNHW5XVVLD
FRQWLQXHGWRFRQWUDFWDOWKRXJKWRDOHVVHU
H[WHQWWKDQLQ,QDGGLWLRQRXU1LJHULDQ
EXVLQHVVJUDSSOHGZLWKDQHQYLURQPHQW
RIbVHYHUHKDUGFXUUHQF\VKRUWDJHV
DbVLJQLFDQWGHYDOXDWLRQHQVXLQJKLJK
LQDWLRQDQGDFRQWUDFWLRQLQWKHHFRQRP\
2LOSULFHVZHUHYRODWLOHQRWRQO\LPSDFWLQJ
ERWKRIWKHVHHFRQRPLHVEXWDOVRUHTXLULQJ
FDUHIXOPDQDJHPHQWRI3(7UHVLQSULFHVIRU
Coca-Cola HBC
2016 Integrated Annual Report 11
Strategic Report
WKHPDUNHWFRQGLWLRQV6HFRQGO\RXU RILPSURYHPHQWHYLGHQFHVWKHVWUHQJWKRI
&RPSDQ\ZLGHIRFXVRQLPSURYLQJSULFH WKHbEXVLQHVVDQGKHUDOGVWKHUHVXOWVZHbFDQ
DQGSURGXFWPL[KDVGHOLYHUHGZHOOZLWKD GHOLYHUDVWKHPDFURHFRQRPLFHQYLURQPHQW
LQFUHDVHLQbQHWVDOHVUHYHQXHSHUFDVH JHWVEHWWHU
RQDFXUUHQF\QHXWUDOEDVLV)LQDOO\*URXS
RSHUDWLQJPDUJLQVH[SDQGHGFRQVLGHUDEO\ 'RHVWKDWGLYHUWVHQLRU
IRUWKHVHFRQG\HDUUXQQLQJGHVSLWH PDQDJHPHQWVDWWHQWLRQ
LQFUHDVHGPDUNHWLQJLQYHVWPHQW7DNLQJ DZD\IURPH[SDQVLRQ
Corporate Governance
LQWRDFFRXQWWKHVWURQJIRUHLJQFXUUHQF\ WKURXJK0 $"
KHDGZLQGDQGEURDGO\QHXWUDOLQSXWFRVWV
:HKDYHDOZD\VWUDFNHGFHUWDLQEUDQGVLQ
WKLVLVYHU\PXFKDUHHFWLRQRIWKHOHDQFRVW
VWLOOGULQNVLQRXUH[LVWLQJWHUULWRU\ZKLFKZH
VWUXFWXUHRIWKHEXVLQHVVDQGWKHOHYHUDJH
ZLVKWRDFTXLUHDQGEROWRQWRRXUFXUUHQW
WKLVDRUGVXVDVUHYHQXHVJURZ7KHZRUN
GLVWULEXWLRQQHWZRUNZKHQWKH\EHFRPH
ZHKDYHGRQHWRRSWLPLVHRXUSURGXFWLRQ
DYDLODEOHDQGDWWKHULJKWSULFHRIFRXUVH
DQGRSHUDWLQJFRVWEDVHLVEHDULQJIUXLW
7KLVZLOOFRQWLQXH
)RUPRUHDERXWQDQFLDOSHUIRUPDQFHSOHDVHVHH $VDVLJQDWRU\WRWKH
WKH)LQDQFLDOUHYLHZVHFWLRQRIWKLVUHSRUWRQ
SDJHb 8QLWHG1DWLRQV81*OREDO
SODVWLFSDFNDJLQJ
&RPSDFWVLQFHWKH

2XUSHRSOHPDQDJHGWKLVYRODWLOLW\YHU\ZHOO
LQGHHG:HGHSOR\HGSURDFWLYHPHDVXUHV
WRPDQDJHFXUUHQF\H[SRVXUHVLQFUHDVHG
SULFHVWRRVHWWKHIRUHLJQFXUUHQF\LPSDFW
RQRXUSURWVDQGFRQWLQXHGZLWKRXU
UHVWUXFWXULQJSURJUDPPHV,DPSDUWLFXODUO\
SOHDVHGWKDWWKHFKDOOHQJHVZHIDFHG
LQYLJRUDWHGRXUSHRSOHLQFUHDVLQJWKHLU
OHYHObRIHQJDJHPHQWDJDLQWKLV\HDU
:LWKDQRWKHUJRRG\HDU
+RZZRXOG\RXVXPPDULVH EHKLQG\RXZKDWLV\RXU
WKHRSHUDWLRQDODQGQDQFLDO QXPEHURQHVWUDWHJLF
$Q\GLVDSSRLQWPHQWV"
,WLVLPSRUWDQWWRGULYHYROXPHJURZWKDV
ZHOODVLPSURYHPHQWVLQSULFHDQGSURGXFW
PL[LQRUGHUWREHQHWIXOO\IURPWKH
RSHUDWLQJOHYHUDJHLQWKHEXVLQHVV7KLV\HDU
YROXPHVJUHZZHOOLQDQXPEHURIPDUNHWV
EXWWKLVZDVRVHWE\WKHGHFOLQHVLQ5XVVLD
DQGVRPH:HVWHUQ(XURSHDQPDUNHWV
Financial Statements
EXVLQHVVKDVDYHU\VWURQJ
VXVWDLQDELOLW\IRFXV'LG\RX
PDNHIXUWKHUSURJUHVVLQ
WKH\HDU"
:HDUHDEVROXWHO\FRPPLWWHGWRVXVWDLQDEOH
UHVSRQVLEOHEXVLQHVVJURZWK%XLOGLQJ
RQbLPSURYHPHQWVZHKDYHPDGHRYHUD
QXPEHURI\HDUVRXUZDWHUXVHUDWLRIHOOE\
LQYVDQGRXUHQHUJ\XVH
UDWLRIHOOE\PHDQLQJWKDWZHQHHG
OHVVWRSURGXFHDOLWUHbRIEHYHUDJH&DUERQ

Swiss Statutory Reporting

KLJKOLJKWVRIWKH\HDU" SULRULW\"
HPLVVLRQVIURPRXURSHUDWLRQVKDYHDOVR
7KHUHZHUHPDQ\KLJKOLJKWVIRUPH FRQWLQXHGWRIDOOE\bLQ
2XUQXPEHURQHSULRULW\FRQWLQXHVWREH
ZKLFK,ZLOOFRQGHQVHLQWRWKUHH)LUVWO\ 7RSXVKRXUVHOYHVIXUWKHUZHDQQRXQFHG
WRbHQVXUHUHYHQXHJURZWKDQGPDUJLQ
RXUSHRSOHLQb1LJHULDZLWKWKHVXSSRUWRI VHYHQQHZWDUJHWVLQ6HSWHPEHU
H[SDQVLRQ:HDUHZRUNLQJWRZDUGV
*URXSIXQFWLRQVDQGFORVHFRRSHUDWLRQ FRPPLWWLQJXVWRVLJQLFDQWLPSURYHPHQWV
DFKLHYLQJWKHQDQFLDOWDUJHWVZH
ZLWK7KH&RFD&ROD&RPSDQ\VWHHUHG UHODWHGWRSURGXFWSDFNDJLQJXVHRI
GLVFORVHGLQ-XQH:KLOHRXUSODQV
WKHEXVLQHVVWKURXJKYHU\URXJKZDWHUV UHQHZDEOHDQGFOHDQHQHUJ\VXVWDLQDEOH
DOORZIRUDVORZVWDUWLQDQGZLWK
WKLV\HDU7KHbDFKLHYHPHQWRIb VRXUFLQJSUDFWLFHVDQGPRUHLQYHVWPHQW
WKHSDFHSLFNLQJXSWKHUHDIWHUHYHU\\HDU
YROXPHJURZWKZDVDKXJHVXFFHVVJLYHQ DQGLQYROYHPHQWLQRXUFRPPXQLWLHV
Supplementary Information

:KDWDUHWKHYLWDOWKHPHVIRUWKHORQJWHUPVXFFHVVRIWKHEXVLQHVV"
)LUVWO\LWLVYLWDOWKDWZHPDQDJHRXUSURGXFWSRUWIROLRSURDFWLYHO\DVFRQVXPHUSUHIHUHQFHVHYROYH,QDGGLWLRQPDUNHWVDUHFKDQJLQJ
DQGZHQHHGWRUHVSRQGWRPHJDWUHQGVVXFKDVWKHbGHYHORSPHQWRIWKHUHWDLOODQGVFDSH)LQDOO\WKHUHSXWDWLRQRI&RFD&ROD+%&DQG
PDLQWDLQLQJWKHWUXVWRIRXUZLGHUDXGLHQFHVDUHDOVRIURQWRIPLQGLQHYHU\WKLQJZHGR

8QORFNLQJRXU 7UXVWHGE\RXU 5HPDLQLQJ 3UHIHUUHG 5HPDLQLQJ

WDOHQWSRWHQWLDO FRPPXQLWLHV UHOHYDQWIRU VXSSOLHUIRU IRFXVHGRQbFRVW
RXUFRQVXPHUV RXUFXVWRPHUV HFLHQFLHV
i 6HHPRUHLQIRUPDWLRQDERXWRXUVWDNHKROGHUVRQS

COC016_.indb 11 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report
&KLHI([HFXWLYH2FHUV4 $FRQWLQXHG
7KHVHQHZWDUJHWVFRPSOHPHQWRXU
H[LVWLQJFRPPLWPHQWVUHODWHGWR
FDUERQDQGZDWHULQWHQVLW\2XUOHYHORI
DPELWLRQGHPRQVWUDWHVKRZZHDVD
EXVLQHVVDFWLYHO\VXSSRUWWKHDFKLHYHPHQW
RIWKH6XVWDLQDEOH'HYHORSPHQW*RDOV
DGRSWHGE\WKH81:HDOVRFRQWLQXRXVO\
ZRUNWRLPSOHPHQWDQGSURPRWHWKH
SULQFLSOHVRIWKH81*OREDO&RPSDFW
LQVXSSRUWRIKXPDQDQGODERXUULJKWV
FRUSRUDWHJRYHUQDQFHDQGDQWLFRUUXSWLRQ
DQGHQYLURQPHQWDOSURWHFWLRQ
<RXSHUVRQDOO\GHYRWH
DbORWbRIWLPHDQGHRUW
WRb&RFD&ROD+%&V
LQYHVWPHQWLQSHRSOH
:KDWbLPSDFWKDYH\RXVHHQ"
,QZHFRQWLQXHGRXUHRUWVWR
LGHQWLI\DWWUDFWDQGUHWDLQWKHEHVWWDOHQWE\
IRVWHULQJWKHHQJDJHPHQWDQGHQWKXVLDVP
RIRXUSHRSOHGHYHORSLQJWKHLUbFDSDELOLWLHV
DQGUHZDUGLQJDKLJKSHUIRUPDQFHPLQGVHW
2XUVXFFHVVLVbUHHFWHGLQWKHVWUHQJWKRI
RXUWDOHQWSLSHOLQHDQGHQJDJHPHQWVXUYH\
UHVXOWV$V,EULH\PHQWLRQHGHDUOLHURXU
DQQXDOHPSOR\HHVXUYH\VKRZHGDQRWDEOH
LPSURYHPHQWLQHQJDJHPHQWDJDLQWKLV
\HDU2XUHQJDJHPHQWVFRUHZDV
XSbIURPLQ7KLVVFRUHLVWZR
SHUFHQWDJHSRLQWVKLJKHUWKDQWKHKLJK
SHUIRUPLQJQRUPRIFRPSDQLHVPHDVXUHG
E\:LOOLV7RZHUV:DWVRQ
,DPH[WUHPHO\SURXGWREHOHDGLQJVXFKD
PRWLYDWHGDQGFDSDEOHWHDPDQG,NQRZWKDW
LWLVWKHGHGLFDWHGHRUWVRIDOORIRXUSHRSOH
WKDWGULYHRXUVXFFHVV\LHOGLQJWKHSRVLWLYH
UHVXOWVZHKDYHUHSRUWHGDJDLQLQWKLVUHSRUW
,WKDQNWKHPZLWKDOOP\KHDUW
)RUPRUHDERXWRXUHQJDJHPHQWDQGWDOHQW
GHYHORSPHQWLQLWLDWLYHVSOHDVHVHHWKH3HRSOH
VHFWLRQRIWKLVUHSRUWRQSDJH
COC016_.indb 12
:KDWDUH\RXUSODQVDQG
DVSLUDWLRQVLIZHORRN
IXUWKHURXWWKDQ"
:HH[SHFWWKHQRQDOFRKROLFUHDG\WRGULQN
LQGXVWU\WRJURZE\FSHUDQQXPRQ
DYHUDJHLQWKHQH[WIRXU\HDUV:HKDYH
SODQVWREXLOGRQWKLVDQGDFFHOHUDWHUHYHQXH
JURZWKE\JDLQLQJVKDUHDQGGULYLQJYDOXH
2XUFRPPLWPHQWWRRSWLPLVLQJRXUFRVW
EDVHIXUWKHUDQGWKHRSHUDWLQJOHYHUDJH
LQWKHEXVLQHVVVKRXOGWKHQHQVXUHWKDW
WRSOLQHJURZWKIDOOVWKURXJKWRWKHERWWRP
OLQHH[SDQGLQJPDUJLQVWROHYHOVDFKLHYHG
SULRUWRWKHJOREDOQDQFLDOFULVLV
$QGQDOO\ZKDWLVWKH
RXWORRNIRU"
,QZHH[SHFWVOLJKWO\EHWWHUHFRQRPLF
FRQGLWLRQVWRVXSSRUWYROXPHJURZWK:H
WDNHFRQGHQFHIURPWKHVHLPSURYLQJ
XQGHUO\LQJWUHQGVDVZHOODVWKHVXFFHVV
RIERWKRXUFRPPHUFLDODFWLYLWLHVDQG
FRVWLQLWLDWLYHVZKLFKZLOOUHPDLQNH\IRFXV
DUHDVLQRXUSODQV:HDUHFRQGHQWWKDW
ZLOOEHD\HDURIFXUUHQF\QHXWUDO
UHYHQXHJURZWKDQGPDUJLQH[SDQVLRQDV
ZHFRQWLQXHWRPDNHSURJUHVVWRZDUGVRXU
WDUJHWV
Dimitris Lois
&KLHI([HFXWLYH2FHU
2XUVWUDWHJ\
2XUYLVLRQLVWREHWKH
XQGLVSXWHGEHYHUDJH
OHDGHULQHYHU\PDUNHW
LQbZKLFKZHFRPSHWH
2XU&RPSDQ\KDVDFOHDUVWUDWHJ\WR
DFKLHYHWKLVYLVLRQ:HUHFRJQLVHRXU
UHVSRQVLELOLWLHVWRRXUFRPPXQLWLHVZKR
DUHDOVRRXUFRQVXPHUVWRPDNHSRVLWLYH
HFRQRPLFVRFLDODQGHQYLURQPHQWDO
LPSDFWV:HFRQWLQXHWRHYROYHRXUSRUWIROLR
WRFUHDWHDEDODQFHRIVSDUNOLQJDQGVWLOO
EHYHUDJHVDQGUHIRUPXODWHRXUSURGXFWV
WRUHGXFHFDORULHVLQFROODERUDWLRQZLWK7KH
&RFD&ROD&RPSDQ\:HHQJDJHZLWKRXU
FXVWRPHUVZRUNLQJZLWKWKHPWRJURZWKHLU
EXVLQHVVHVDQGRXUV%XVLQHVVHFLHQF\
DQGLQYHVWPHQWVDUHRQJRLQJSULRULWLHV
DQGLWLVYLWDOWKDWZHFRQWLQXHWRRSWLPLVH
RXUPDQXIDFWXULQJFRVWEDVHDQGORJLVWLFV
IRRWSULQWZLWKRQJRLQJFDUHIXOPDQDJHPHQW
RIRSHUDWLQJH[SHQVHV
:HOLYHE\RXUYDOXHVDXWKHQWLFLW\
H[FHOOHQFHOHDUQLQJFDULQJIRURXUSHRSOH
SHUIRUPLQJDVRQHDQGZLQQLQJZLWK
FXVWRPHUVb:HWKLQNWKHVHYDOXHVPDNH
IRUbDFXOWXUHZKHUHSHRSOHKDYHDVWURQJ
VHQVHRIRZQHUVKLSDQGPDNHGHFLVLRQVZLWK
SXUSRVHFRQGHQFHDQGVSHHG$YDOXHV
OHGDSSURDFKWREXVLQHVVDOVRPDNHVJRRG
FRPPHUFLDOVHQVHDVLWFUHDWHVDFRPSDQ\
FXVWRPHUVZDQWWRZRUNZLWK
3/16/17 2:31 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
+RZZHUHSRUW Strategic
&RPPXQLW\WUXVW
:HIRFXVRQRXUIRXU pillars
VWUDWHJLFSLOODUV&RPPXQLW\ We help our communities thrive, impacting their lives positively by
WUXVW&RQVXPHUUHOHYDQFH making economic, social and environmental contributions
&XVWRPHUSUHIHUHQFHDQG&RVW
OHDGHUVKLSWKDWHQFRPSDVV
WKHNH\DUHDVRIRXUEXVLQHVV

Corporate Governance
:KLOHWKHVHVWUDWHJLFSLOODUV
DUHIXQGDPHQWDOWRRXUYLVLRQ
DQGGRQRWFKDQJHZHKDYH &RQVXPHUUHOHYDQFH &RVWOHDGHUVKLS
DGDSWHGRXULQLWLDWLYHVWRWDNH &XVWRPHUSUHIHUHQFH
IXOODGYDQWDJHRIWKHJURZWKHUD
We work hard to remain relevant for We aspire to be a cost leader and make
WKDWZHEHOLHYHWKHHFRQRP\LV
HQWHULQJ7KHNH\SHUIRUPDQFH
our consumers and be the preferred the necessary investments to sustain
LQGLFDWRUV.3,WRPHDVXUH supplier to our customers this leadership
RXUSURJUHVVGXULQJWKHSHULRG
DUHRXUVFRUHFDUG

Financial Statements
Objectives
'ULYHYROXPH )RFXVRQ ,PSURYH ,QYHVWLQ
JURZWK YDOXH HFLHQF\ WKHEXVLQHVV

:KDWZHGRWR Initiatives    ([SDQGDQGGHHSHQ   &DSLWDOLVHRQPHDOV    &RQWLQXHSURGXFWLRQ   ,QYHVWLQUHYHQXH

DFKLHYHRXU URXWHWRPDUNHW DQGVRFLDOLVLQJ LQIUDVWUXFWXUHDQG JHQHUDWLQJDVVHWVDQG
REMHFWLYHV   ([HFXWHLQVWRUH RFFDVLRQVIRU ORJLVWLFVRSWLPLVDWLRQ LQQRYDWLYHWHFKQRORJ\
ZLWKH[FHOOHQFH VSDUNOLQJGULQNV    &DSLWDOLVHRQ   $FTXLUHZDWHUDQG
$OORIRXURSHUDWLRQVLQ
FRXQWULHVZRUNWRZDUGVWKH   &UHDWHMRLQWYDOXH    ,QFUHDVHVKDUHRI FRQWLJXRXVWHUULWRU\ MXLFHEUDQGVLQ
VDPHREMHFWLYHVGULYHYROXPH ZLWKFXVWRPHUV VLQJOHVHUYHSDFNV DQG(PHUJLQJ H[LVWLQJWHUULWRU\
GULYLQJWUDQVDFWLRQV PDUNHWVRSSRUWXQLWLHV    0DLQWDLQQHJDWLYH
JURZWKIRFXVRQYDOXHLPSURYH   'ULYHWKHZDWHU
HFLHQF\DQGLQYHVWLQWKH FDWHJRU\IRFXVLQJ    ,PSURYHSHUIRUPDQFH    8WLOLVHVKDUHGVHUYLFHV ZRUNLQJFDSLWDO
EXVLQHVVE\LPSOHPHQWLQJ RQYDOXH LQKRWHOVUHVWDXUDQWV WRJDLQSURFHVV EDODQFHVKHHWSRVLWLRQ

Swiss Statutory Reporting

DQGFDIHV+R5H&D HFLHQF\
LQLWLDWLYHVWKDWDUHGHVLJQHG
FHQWUDOO\7KHVHLQLWLDWLYHVDUH    *URZLQWKHHQHUJ\    'ULYHSDFNDJLQJ
DGMXVWHGWRUHVSRQGWRORFDO FDWHJRU\ KDUPRQLVDWLRQDQG
   'ULYHSULFLQJVWUDWHJLHV innovation
GHPRJUDSKLFVHFRQRPLHV
OLJKWZHLJKWLQJ
DQGPDUNHWFKDUDFWHULVWLFV
LQRUGHUWRPDQDJHULVNZKLOH
GULYLQJJURZWK

+RZZHPHDVXUH Scorecard $YHUDJHFXUUHQF\QHXWUDO &RPSDUDEOH2S([ &DSLWDOH[SHQGLWXUH

RXUSHUIRUPDQFH
:HKDYHYH.3,VWKDWDUH
FKRVHQWRPHDVXUHRXU
UHYHQXHJURZWK

SD 
DVRIUHYHQXH

 
SURJUHVV:HUHSRUWRQWKHVH
Supplementary Information

E\
HYHU\\HDU3OHDVHVHHSDJHV RIUHYHQXH
IRURXU.3,V
&RPSDUDEOH(%,7
:RUNLQJFDSLWDOOHVVWKDQ

E\
P
Enablers
and values
2XUSHRSOH
Our most important enablers to growth are our people: unparalleled talent
and a high-performance mindset are what we strive for.
Our people make our Company what it is and create value by growing our business responsibly
and sustainably. Strengthening the capabilities of our people as well as engaging them
DQGbUHZDUGLQJWKHPDSSURSULDWHO\bDUHbSULRULWLHVDWHYHU\OHYHORIRXU&RPSDQ\HQDEOLQJ
XVbWRbFRQWLQXHbWRbDWWUDFWDQGUHWDLQWKHEHVWWDOHQW

COC016_.indb 13 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report

2XUNH\SHUIRUPDQFHLQGLFDWRUV

2XUVWUDWHJLFREMHFWLYHV
Objectives 'ULYHYROXPHJURZWK )RFXVRQYDOXH

How we track VolumeLVPHDVXUHGLQPLOOLRQFDVHVVROGZKHUH Net sales revenue (NSR) FRPSULVHVUHYHQXHVIURP&RFD&ROD

our progress RQHXQLWFDVHUHSUHVHQWVOLWUHV +%&VSULPDU\DFWLYLWLHV:HUHSRUWWKLVRQDQ);QHXWUDOEDVLV
Net sales revenue generated per case soldLVFDOFXODWHG
RQbDQb);QHXWUDOEDVLV

What happened 9ROXPHLQFUHDVHGE\ZLWKJURZWKOHGE\ );QHXWUDOUHYHQXHSHUFDVHJUHZLQDOOJHRJUDSKLFVHJPHQWV

LQ{WKH{\HDU 1LJHULDDQG5RPDQLDRVHWE\FRQWLQXLQJ UHHFWLQJSULFHLQFUHDVHVDVZHOODVEHWWHUSDFNDJH
GHFOLQHLQ5XVVLDDQGZHDNHUYROXPHVLQ,WDO\ DQGbFDWHJRU\PL[
DQGb$XVWULD

KPIs 9ROXPH );QHXWUDOUHYHQXH );QHXWUDOUHYHQXH

PXQLWFDVHV SHUFDVHJURZWK JURZWK
2,500 3 2. 9 2.9 3.0
3
2,003 2,055 2,058 2. 5
2,000

1,500 2 2

1,000
1 1
500
0. 3
0 0 -0.3
0
2014 2015 2016 2014 2015 2016 2015 2016
2014

Our plans :HH[SHFWYROXPHWRFRQWLQXHWRJURZLQWKH :HH[SHFWRXUSODQVWRDJDLQGHOLYHUDVXEVWDQWLDOLQFUHDVHLQ

for 2017 'HYHORSLQJDQG(PHUJLQJVHJPHQWVDQGWR );QHXWUDOQHWVDOHVUHYHQXHSHUFDVHLQWKHIXOO\HDU
VWDELOLVHLQWKH(VWDEOLVKHGVHJPHQW

Link to remuneration 9ROXPHLVDQDQFLDOPHDVXUHIRU0,3DZDUGV 1HWVDOHVUHYHQXHLVDQDQFLDOPHDVXUHIRU0,3DZDUGVb

See page 88

8QGHUSLQQHGE\RXUHQDEOHUVDQGYDOXHV
Objectives 1XUWXUHXQSDUDOOHOHGWDOHQWDQGDKLJKSHUIRUPDQFHPLQGVHW

How we measure our :HWUDFNWKHSHUFHQWDJHRIHPSOR\HHVUHVSRQGLQJWRD*URXSZLGHengagement VXUYH\SRVLWLYHO\

performance
:HUHFRUGWKHQXPEHURIkey people in key positions DQGWKHQXPEHURIwomen in our Company

What happened %DVHGRQVXUYH\UHVXOWVWKHHPSOR\HHHQJDJHPHQWVFRUHZDVLQRIRXUNH\SHRSOHZHUHLQNH\

in the year SRVLWLRQVXSIURPLQ
:RPHQPDNHXSRIRXUWRWDOZRUNIRUFHRIRXUPDQDJHUVRIRXUVHQLRUOHDGHUVDQGRIRXU%RDUG
RIb'LUHFWRUV

KPIs (PSOR\HHHQJDJHPHQW .H\SHRSOHLQ :RPHQLQ

VFRUH NH\bSRVLWLRQV PDQDJHPHQW
100 100 40
87 88 87
82 78 79 32 33 33
80 80
30
60 60
20
40 40
10
20 20

0 0 0
2014 2015 2016 2014 2015 2016 2014 2015 2016

COC016_.indb 14 3/16/17 2:31 PM

 Coca-Cola HBC
2016 Integrated Annual Report 15

Strategic Report
,PSURYHHFLHQF\ ,QYHVWLQWKHEXVLQHVV

OpEx (Operating expenses) as a percentage of net sales revenue Working capitalLVRSHUDWLQJFXUUHQWDVVHWVPLQXVRSHUDWLQJFXUUHQW

LVbFDOFXODWHGE\GLYLGLQJFRPSDUDEOHRSHUDWLQJH[SHQVHVE\WRWDOQHW OLDELOLWLHVH[FOXGLQJQDQFLQJDQGLQYHVWPHQWDFWLYLWLHV
VDOHVUHYHQXH
Capital expenditure (CapEx) DVDSHUFHQWDJHRIQHWVDOHVUHYHQXH
Comparable EBIT margin UHIHUVWRSURWEHIRUHWD[H[FOXGLQJQDQFH
5HWXUQRQLQYHVWHGFDSLWDO52,&bLVQHWRSHUDWLQJSURWDIWHUWD[GLYLGHG
LQFRPHRUFRVWDQGVKDUHRIUHVXOWVRIHTXLW\PHWKRGLQYHVWPHQWV
E\FDSLWDOHPSOR\HGLQWKHEXVLQHVV
DGMXVWHGIRUFHUWDLQQRQUHFXUULQJLWHPVGLYLGHGE\QHWVDOHVUHYHQXH

Corporate Governance
&RVWHFLHQFLHVUHVXOWHGLQDFRQVLGHUDEOHUHGXFWLRQLQRSHUDWLQJ :HPHWRXUZRUNLQJFDSLWDODQGFDSLWDOH[SHQGLWXUHWDUJHWV
H[SHQVHVZKLFKFRPELQHGZLWKUHYHQXHJURZWKVXSSRUWHGH[SDQVLRQ ,PSURYHGbSURWDELOLW\DQGHFLHQWXVHRIFDSLWDOLQFUHDVHG52,&b
LQPDUJLQV

2S([DVSHUFHQWDJH &RPSDUDEOH(%,7 &DS([DVSHUFHQWDJH 52,&

RI165 PDUJLQ RI165 
30 29.2 29.2 28.2 10 6 5.4 12
5.2 5.3 10.3
8.3
8 7.5 10 8.8
6.5 4 8 7.5
20 6

Financial Statements
6
4
10 2 4
2 2

0 0 0 0
2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

2XUHRUWVWRJDLQIXUWKHUHFLHQFLHVLQRXURSHUDWLQJFRVWEDVHFRQWLQXH :HZLOOFRQWLQXHWRLQYHVWLQWKHEXVLQHVVZKLOHPDLQWDLQLQJGLVFLSOLQH
WRbH[WUDFWbUHWXUQVIURPWKRVHLQYHVWPHQWV

2S([DVDSHUFHQWDJHRIUHYHQXHDQGFRPSDUDEOH(%,7DUHQDQFLDO :RUNLQJFDSLWDODFWVDVDTXDOLHUIRUWKHYROXPH0,3SD\RXW

Swiss Statutory Reporting

PHDVXUHVIRUb0,3DZDUGVb 52,&LVDQDQFLDOPHDVXUHIRU363DZDUGVb

$FWUHVSRQVLEO\

:HPHDVXUHGLUHFWDQGLQGLUHFWgreenhouse gas emissionsIURPRXURSHUDWLRQVVFRSHVDQGDVGHQHGE\WKH*UHHQKRXVH*DVSURWRFRO

Supplementary Information

2XURSHUDWLRQDOFDUERQHPLVVLRQVIURPSURGXFWLRQDQGWUDQVSRUWDPRXQWHGWRbWRQQHVLQDGHFUHDVHYV

7KHJOREDOFDUERQIRRWSULQWRIRXUSURGXFWVLQFOXGLQJLQGLUHFWHPLVVLRQVLQWKHVXSSO\FKDLQDQGIRUFRROLQJDPRXQWHGWRPLOOLRQWRQQHVLQ
Db&2bUHGXFWLRQRIbYVb

*UHHQKRXVHJDVHPLVVLRQV *UHHQKRXVHJDVHPLVVLRQV
WRQQHVVFRSHVDQG bWRQQHVVFRSHVDQG
800 719 5,000
4,332 4,175 4,094
635
587 4,000
600
3,000
400
2,000
200
1,000  6LQFHZHUHSRUWVFRSHFDUERQHPLVVLRQV
0 XVLQJDPDUNHWEDVHGDSSURDFK$OOSUHYLRXV\HDUV
2014 2015 2016 2014 2015 2016 QXPEHUVKDYHEHHQbXVHGDVDSUR[\VLQFHDWUXH
PDUNHWEDVHGUHVXOWFDQQRWEHFDOFXODWHG

COC016_.indb 15 3/16/17 2:31 PM

 Coca-Cola HBC
16 2016 Integrated Annual Report

Managing risk and materiality

Taking proactive
measures to
create and
SURWHFWYDOXHb
Our material issues and principal risks have the greatest potential to
impact our ability to create and sustain value over time, and they help
XVbHQVXUHWKDWRXUVWUDWHJ\LVWKHULJKWRQHIRURXUEXVLQHVV:HXVH
DbFROODERUDWLYHDSSURDFKWRHQVXUHDOLJQPHQWRQWKHVHLVVXHVDFURVV
RXURUJDQLVDWLRQ
We examine the opportunities and threats facing our business through two complementary lenses. One is a business resilience
OHQVZKLFKDOORZVXVWRLGHQWLI\DQGUHVSRQGWRGLVUXSWLYHULVNHYHQWVZKLOHOHYHUDJLQJJURZWKRSSRUWXQLWLHV7KHbRWKHUbOHQV
focuses on material issues including market, environmental and economic factors that have the potential to alter our business
landscape in the medium and longer term. These two lenses enable us to understand our principal risks and material issues
which, due to their importance, are considered in our business planning processes and monitored by our Operating Committee
DQGRXU%RDUGRQDUHJXODUEDVLV,QWKHIROORZLQJVHFWLRQZHGHVFULEHKRZWKH\DUHLGHQWLHGPDQDJHGDQGUHSRUWHG

COC016_.indb 16 3/16/17 2:31 PM


Risk management and
our principal risks
:HFRQWLQXHGWREXLOGRQRXUHQWHUSULVHULVNPDQDJHPHQW
SURJUDPPHGXULQJIXUWKHUHPEHGGLQJWKHSURJUDPPH
LQWRRXU&RPSDQ\FXOWXUH
(HFWLYHULVNPDQDJHPHQWLVDNH\
IDFWRUbLQWKHZD\RXUVHQLRUPDQDJHPHQW
determines strategy and establishes
priorities. Across our 28 countries, we
integrate the way we manage risk into
the operating framework and culture of
RXUEXVLQHVVb2XUFRPSOHWHDSSURDFKWR
business resilience and risk management
was disclosed in our 2015 Annual Report
DQGDGHVFULSWLRQbLVDYDLODEOHRQOLQHDW
http://coca-colahellenic.com/en/about-us/
business-resilience-and-risk-management/
business-resilience/.
The Companys business resilience function,
KHDGHGE\WKH*URXS&KLHI5LVN2FHU
(CRO), exists as a specialised independent
risk management function that is
responsible for day-to-day management
of the programme and working with other
VSHFLDOLVHGGHSDUWPHQWVVXFKDVbQDQFH
RQVSHFLFEXVLQHVVULVNV7KHbIXQFWLRQ
reports directly and independently to both
the Operating Committee (the Companys
most senior management committee) and
the Audit and Risk Committee.
British Insurance
Awards 2016:
At the 2016 British Insurance Awards,
the Company received the Risk
Management Award for In House &
Insurable Risk Managers, an award for
innovative solutions recognising our
ongoing work in this important area
of governance.
COC016_.indb 17
A structured approach
WRbULVNPDQDJHPHQW
The Board is ultimately responsible for the
Groups risk management and internal
control systems, and for reviewing their
HHFWLYHQHVV7KH%RDUGGHQHVWKH
Groups risk appetite and, on a quarterly
basis, monitors the Companys risk
exposure to ensure that the material
matters and principal risks facing the
Company are managed in alignment
with our strategic goals and objectives.
:KLOHbUHVSRQVLELOLW\IRURYHUVHHLQJWKHVH
ongoing processes rests with the Audit and
Risk Committee (as described later in this
report), the Board as a whole is informed of
RXWFRPHVDQGDOOVLJQLFDQWLVVXHV
In 2016, our detailed enterprise risk
PDQDJHPHQWSURFHVVIRUWKHLGHQWLFDWLRQ
review and escalation of risk included the
following actions:
In support of governance requirements,
quarterly risk reviews were undertaken by
PDUNHWVDQGFRUSRUDWHRFHIXQFWLRQV
ZLWKRIWKHVHbULVNDVVHVVPHQW
sessions facilitated by the CRO with
WKHVHOHDGHUVKLSWHDPVDQGb
6LJQLFDQWRSHUDWLRQDOULVNVDQG
associated management actions were
evaluated and assessed quarterly.
Additionally, in May and November,
facilitated sessions were held to review
risks on a regional level. These sessions
included the Region Directors, their
QDQFHDQGVXSSO\FKDLQOHDGHUV
and the CRO. Outcomes from these
sessions were shared with operational
VWDNHKROGHUVHQVXULQJbHHFWLYHULVN
management feedback.
Coca-Cola HBC
2016 Integrated Annual Report 17
Strategic Report
Corporate Governance
These operational and regional risks were
also reviewed by the Group Risk Forum,
which acts as an internal think tank on
strategic risk and is headed by the CRO.
The Group Risk Forum evaluated the risk
trends and the strategic risk environment
as part of the preparation of our Strategic
Financial Statements
Risk Register and Principal Risks.
Drawing on all available risk data, the
Operating Committee reviewed critical
risk exposures in May and November
with the CRO subsequently reporting the
Companys risk management attitude,
material changes, and mitigating actions
to the Audit and Risk Committee.
On a quarterly basis, the CRO briefed the
Audit and Risk Committee on the risk
management programme, material risks,
and alignment and compliance with the
Swiss Statutory Reporting
UK Corporate Governance Code.
We ensure that visibility and alignment
are maintained for both our material
issues and our principal risks through
strong functional collaboration. Because
collaboration is central to the success of
the risk management programme, we have
established strong partnerships between
risk management and the sustainability,
KHDOWKDQGVDIHW\QDQFHDQGSXEOLFDDLUV
and communications departments.
Supplementary Information
Key features of our enterprise-wide risk
management system are:
a formalised risk management policy;
Group statements on strategic direction,
ethics and values;
clear business objectives and
business principles;
FOHDUO\GHQHGULVNXQLYHUVHDOLJQHG
to our strategic priorities: Community
trust, Consumer relevance, Customer
preference and Cost leadership;
3/16/17 2:31 PM
 Coca-Cola HBC
18 2016 Integrated Annual Report
Risk and materiality continued
Risk map
High
12
Impact
Low
a continuous process for the
LGHQWLFDWLRQDQGHYDOXDWLRQRI
VLJQLFDQWULVNVWRWKHDFKLHYHPHQW
of business objectives;
risk management integration into
WKHSURFHVVRILGHQWLFDWLRQDQG
management of material issues;
risk management integration into
RXUbEXVLQHVVSODQQLQJSURFHVVHV was done through our ongoing ability to
implementation of management
SURFHVVHVWRPLWLJDWHVLJQLFDQW
ULVNVbWRbDQDFFHSWDEOHOHYHO for guiding us in the management of both
implementation of a cultural
change programme that embeds
risk management into the fabric of
the business;
focus on enhancing risk management
capabilities of all future leaders across all
operations and functions;
continual monitoring of our internal and
external environment for factors that may
FKDQJHRXUULVNSUROH
annual evaluation of the type and amount
Key
1
1 7
2 Consumer health Quality
2 Foreign exchange 8 Regulatory challenges
7 10
4 3 3 Climate, carbon and water 9 People and talent
9
8
4 Channel mix 10 Cyber
5
11 5 Declining consumer demand 11 Change management
6
6 Discriminatory taxes 12 Stakeholder relations
Likelihood High
The Companys internal audit department We remain constantly vigilant to changes
conducts annual audits of the risk to our economic and regulatory operating
management programme, measuring the environments, to ensure we proactively
processes against International Accounting identify and evaluate new risks and
Standards and best practice. The Corporate understand threats to our business viability.
Audit Director makes recommendations
For the current reporting period, we
to improve the overall risk management
validated the continued importance
programme with the audit report submitted
RIRXULGHQWLHGSULQFLSDOULVNV7KLV
to the Audit and Risk Committee.
aggregate and analyse risk, our functional
Our principal risks
collaboration, and the think tank approach
Our strategic priorities provide the context of the Companys Group Risk Forum.
the material matters and the principal
risks faced by our business. The overview
of our most important risks, involving an
assessment of the likelihood of occurrence
and potential consequences, does not
include all the risks that may ultimately
DHFWRXU&RPSDQ\6RPHULVNVQRW\HW
known to us, or currently believed to be
immaterial, could ultimately have an impact
RQRXUEXVLQHVVRUQDQFLDOSHUIRUPDQFH
of external insurance purchased and the .H\IRUSULQFLSDOULVNVWDEOHSS
role of our captive insurance entity, with
reference to the availability of cover and Increasing
cost, measured against the likelihood
DQGPDJQLWXGHRIWKHLGHQWLHGULVNV Stable

i )RUPRUHLQIRUPDWLRQUHDGRXU Decreasing
9LDELOLW\6WDWHPHQWRQSDJH

COC016_.indb 18 3/16/17 2:31 PM

 Coca-Cola HBC
2016 Integrated Annual Report 19

Strategic Report
Link to material
Principal risks Risk Potential impact Key mitigations Status
issues

1. Consumer Failure to adapt to Failure to Focus on product innovation Health and

health changing consumer achieve our Expand our range of low- nutrition
health trends and growth plans and zero-calorie beverages
address Damage to Introduce smaller entry packs Responsible
misconceptions our brand and Reduce the calorie content marketing
about the health corporate of products in the portfolio
impact of soft reputation Clearer labelling on packaging
drinks. Loss of Promote active lifestyles
consumer through consumer
base engagement programmes

Corporate Governance
focused on health and wellness

2. Foreign Foreign exchange Financial loss Treasury Policy requires the Not applicable
exchange exposure arises Asset hedging of 25% to 80% of
from changes in impairment rolling 12-month forecast
exchange rates, as Limitations transactional exposure
well as currency on cash Hedging beyond 12 months
devaluation in repatriation may occur if forecast
combination with transactions are highly probable
capital controls, 'HULYDWLYHQDQFLDOLQVWUXPHQWV
which restricts are used, where available, to
movement of funds reduce net exposure to

Financial Statements
and increases the FXUUHQF\XFWXDWLRQV
risk of asset
impairment.
3. Climate, Failure to meet our Long-term Water stewardship Carbon and
carbon and stakeholders damage to our programmes that reduce energy
water expectations in corporate our water consumption and
making a positive reputation our footprint and assure Packaging,
contribution to the /HVVLQXHQFH sustainable end-to-end recycling and
sustainability in shaping the ZDWHUbXVH waste
agenda, particularly citizenship and Carbon and energy management
relating to climate sustainability management programmes

Swiss Statutory Reporting

change, packaging agenda Packaging waste management Sustainable
ZDVWHbDQGZDWHU Reduced programmes sourcing
usage. SURWDELOLW\ Partnering with NGOs and
International NGOs on Water
common issues such as stewardship
nature conservation
Partnering with local
communities to minimise
environmental impact
Focus on sustainable
procurement
Supplementary Information

4. Channel mix A continued Reduced Continued to increase our Not applicable

increase in the SURWDELOLW\ presence in the discounter
concentration of channel during 2016
retailers and Working closely with our
independent customers to identify
wholesalers on opportunities for joint
whom we depend value creation
to distribute our Right Execution Daily (RED)
products. The strategy continues to support
immediate our commitment to operational
consumption excellence, enabling us to
channel remains respond to changing customer
under pressure as needs across all channels
consumers alter
consumption
habits.

COC016_.indb 19 3/16/17 2:31 PM

 Coca-Cola HBC
20 2016 Integrated Annual Report

Risk and materiality continued

Link to material
Principal risks Risk Potential impact Key mitigations Status
issues

5. Declining Challenging and Eroded 6HHNWRRHUWKHULJKWEUDQG Direct and

consumer volatile consumer at the right price, in the right indirect
demand macroeconomic, FRQGHQFH package through the right economic
security and DHFWLQJ channel impacts
political spending Robust security practices and
conditions can ,QDWLRQDU\ procedures to protect people
DHFWFRQVXPHU pressures and assets
demand and Social unrest Crisis response and business
create security Safety of people continuity strategies
risks across our and security of
diverse mix of assets
markets.
6. Discriminatory Regulations on Reduction in Proactively working with Not applicable
taxes consumer health SURWDELOLW\ governments and regulatory
and the risk of the authorities to ensure that the
targeting of our facts are clearly understood and
products for that our products are not
discriminatory tax singled out unfairly
and packaging Shaping the sustainability
waste recovery. agenda as it relates to
packaging and waste recovery
Engaging with stakeholders
including NGOs and the
communities in which we
operate on strategies to
protect the environment

7. Quality The occurrence Reduction in Stringent quality processes Product

of quality issues, volume and net in place to minimise the quality and
or the sales revenue occurrence of quality issues integrity
contamination of Damage to brand Early warning systems
our products. and corporate (Consumer Information
reputation Centres and social media
Loss of monitoring) that enable
consumer trust LVVXHLGHQWLFDWLRQ
Robust response processes
and systems that enable us
WRTXLFNO\DQGHFLHQWO\GHDO
with quality issues, ensuring
customers and consumers
UHWDLQFRQGHQFHLQRXU
products

8. Regulatory Inadvertent Damage to our Annual Tone from the Top Corporate
challenges non-compliance, corporate messaging governance,
by the Company reputation &RGHRIb%XVLQHVV&RQGXFW business
or related third 6LJQLFDQW training and awareness ethics and
parties, with QDQFLDOSHQDOWLHV Anti-Bribery Policy and anti-
local laws and Management commercial compliance training corruption
regulations, that time diverted to Internal control assurance
exist across our resolving legal programme with local Human rights
diverse mix of issues management accountability and diversity
markets. Risk-based internal control
framework
Speak Up hotline
Legal function in constant
dialogue with regulators

COC016_.indb 20 3/16/17 2:31 PM

 Coca-Cola HBC
2016 Integrated Annual Report 21

Strategic Report
Link to material
Principal risks Risk Potential impact Key mitigations Status
issues

9. People and Inability to attract and Failure to achieve our Focus on developing Employee
talent UHWDLQVXFLHQW growth plans leadership talent well-being
QXPEHUVRITXDOLHG Right people in the right and
and experienced positions across the business engagement
employees in Focus on employee

Corporate Governance
competitive talent engagement ensuring
markets and an inability support for our values
to ensure their ongoing Promote operational excellence
engagement and Create shared value with the
commitment. communities in which we work
to ensure we are seen as an
attractive employer
10. System Business stoppage due Financial loss Monitoring, identifying and Not
availability to applications or Operational addressing cyber threats and applicable
and cyber systems unavailability, disruption suspicious internal computer
attacks or a loss of personal Damage to corporate activity

Financial Statements
data, arising from data reputation Training on information
centre failure or other Non-compliance with management and the
internal or external statutory data protection of information
cyber threats and protection legislation Disaster recovery testing and
vulnerabilities. building resilience into our
cyber risk programme

11. Change )DLOXUHWRHHFWLYHO\ Under-delivery of Project plans and change Not

management execute major expected management strategies applicable
business transformation in place
transformations, or results Board and Operating
performance issues Disengaged Committee conduct regular

Swiss Statutory Reporting

with third-party employees tracking of the actual
providers that we Reduction in performance compared
deploy as part of our SURWDELOLW\ to business case
business 0DUNHWFRQGHQFHLQ
transformation. our ability to deliver
on strategy is
weakened
Damage to corporate
reputation
12. Strategic We rely on our strategic Termination of Management focus on Not
stakeholder relationships and agreements or HHFWLYHGD\WRGD\LQWHUDFWLRQ applicable
relationships agreements with The unfavourable renewal with our strategic partners
Supplementary Information

Coca-Cola Company, terms could adversely :RUNLQJWRJHWKHUDVHHFWLYH

Monster Energy and DHFWSURWDELOLW\ partners for growth
our Premium Spirits Engagement in joint projects
partners. and business planning with
a focus on strategic issues
Participation in Top to Top
senior management forums

COC016_.indb 21 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report

5LVNDQGPDWHULDOLW\bFRQWLQXHG

Our approach
to materiality
Our strategic priorities provide the context for guiding us in
WKHPDQDJHPHQWRIERWKWKHPDWHULDOLVVXHVDQGbSULQFLSDO
risks faced by our business.
0DWHULDOLVVXHVIRURXUEXVLQHVVDUH
WKRVHQDQFLDOHFRQRPLFHQYLURQPHQWDO
DQGVRFLDOLVVXHVWKDWDHFWWKHDELOLW\
RIRXUEXVLQHVVWRFUHDWHYDOXHIRURXU
VWDNHKROGHUVDQGFRPPXQLWLHVRYHUWLPH
7KHFURVVIXQFWLRQDO6XVWDLQDELOLW\6WHHULQJ
&RPPLWWHHDVVXPHVUHVSRQVLELOLW\IRURXU
PDWHULDOLW\SURFHVVIURPDJRYHUQDQFH
SHUVSHFWLYHUHYLHZLQJDQGDGMXVWLQJ
SULRULW\LVVXHVWKDWDHFWRXUEXVLQHVV
VWUDWHJ\EXVLQHVVPRGHODQGWKHW\SHVRI
FDSLWDOVRXUEXVLQHVVXVHVRUDHFWV:KHQ
GHWHUPLQLQJRXUPDWHULDOLVVXHVZHDUH
PLQGIXORIWKHEURDGHUHQYLURQPHQWLQZKLFK
ZHRSHUDWHWKHULVNVDQGRSSRUWXQLWLHV
RXUEXVLQHVVLVH[SRVHGWRDQGFKDQJHVLQ
VWDNHKROGHUH[SHFWDWLRQV:HJDLQLQVLJKW
WRZKDWLPSDFWVRXUEXVLQHVVWKURXJK
RQJRLQJUHVHDUFKEHQFKPDUNLQJDQGbPHGLD
:HLGHQWLI\PDWHULDODVSHFWVVWDUWLQJIURPD
FRPSUHKHQVLYHOLVWRIYDULRXVLVVXHVDFURVV
WKHEXVLQHVVDQGWKHQJURXSDQGSULRULWLVH
WKHVHEDVHGRQWKHLUUHOHYDQFHDQGSRWHQWLDO
WRLPSDFWRXUEXVLQHVVVWUDWHJ\DQGULVNV
DQGRSSRUWXQLWLHV
7KH2SHUDWLQJ&RPPLWWHHDQGWKH6RFLDO
5HVSRQVLELOLW\&RPPLWWHHRIWKH%RDUGRI
'LUHFWRUVUHYLHZDQGHQGRUVHWKHPDWHULDO
LVVXHVOLVWDQGWKHPDWHULDOLW\PDWUL[
ZKLFKSOD\DNH\UROHLQPHDQLQJIXOO\DQG
WUDQVSDUHQWO\UHSRUWLQJRQKRZZHFUHDWH
YDOXHLQWKHVKRUWPHGLXPDQGORQJWHUP
Stakeholder involvement
:HDOVRVHHNLQSXWWRRXUPDWHULDOLVVXHV
IURPNH\LQWHUQDODQGH[WHUQDOVWDNHKROGHUV
LQYHVWRUVFXVWRPHUVVXSSOLHUVORFDO
DQGHQJDJHPHQWWREHWWHUXQGHUVWDQG
VWDNHKROGHULQWHUHVWVDQGFRQFHUQVDQGRXU
GHSHQGHQFHDQGHHFWVRQWKHGLHUHQW
W\SHVRIFDSLWDOZHUHO\RQ
7KHVDPHVXUYH\LVFRQGXFWHGZLWK
FORVHbWRbOHDGHUVIURPbDOObEXVLQHVV
XQLWVDQGIXQFWLRQVLQbWKHb*URXSbWRJHW
UHSUHVHQWDWLYHLQSXWWRbRXUbPDWHULDOLW\
PDWUL[IURPLQWHUQDOVWDNHKROGHUVLQFOXGLQJ
RXU2SHUDWLQJ&RPPLWWHH
Material issues matrix
:HFRQWLQXHWRUHJDUGWKHPDWHULDO
LVVXHVLGHQWLHGODVW\HDUDVWKHPRVW
UHOHYDQWDQGZHEHOLHYHWKHVHZLOOUHPDLQ
VRIRURXUEXVLQHVVIRUWKH\HDUVWRFRPH
DOWKRXJKWKHGULYHUVEHKLQGWKHPDQG
WKHLUUHODWLYHLPSRUWDQFHWRWKH*URXS
PRQLWRULQJDQGZHFRQVLGHUbPDUNHW
G\QDPLFVVRFLHWDOLVVXHVHQYLURQPHQWDO
FKDOOHQJHVWKHOHJLVODWLYHDQGUHJXODWRU\
HQYLURQPHQWDQGPDWWHUVLGHQWLHGE\RXU
ULVNPDQDJHPHQWSURFHVVVHHSS
Determining and
prioritising material issues
$VVHVVPHQWRIPDWHULDOLVVXHVLVDQRQJRLQJ
SURFHVVWRHQVXUHWKDWRXUVWUDWHJLFIRFXV
DUHDVUHPDLQUHOHYDQWWRFKDQJHVLQWKH
HQYLURQPHQWLQZKLFKZHRSHUDWHDQG
WKHUHTXLUHPHQWVRIRXUVWDNHKROGHUV
$UHDVWKDWDUHDVVHVVHGLQFOXGH
QDQFLDOHQYLURQPHQWDOVRFLDOVWUDWHJLF
FRPSHWLWLYHUHSXWDWLRQDOOHJLVODWLYH
SROLF\DQGUHJXODWRU\PDWWHUV
COC016_.indb 22
FRPPXQLWLHV1*2VJRYHUQPHQWVLQ
DV\VWHPDWLFZD\2XUEXVLQHVVOHDGHUV
UHJXODUO\HQJDJHZLWKVWDNHKROGHUVDFURVV
RXUPDUNHWVWKURXJKWKHLUZRUNZLWK
WUDGHDVVRFLDWLRQVJRYHUQPHQWVFLYLO
RUJDQLVDWLRQVDQGDOOLDQFHVLQYDULRXV
PHHWLQJVIRUXPVDQGHYHQWVWRGLVFXVV
SULRULW\LVVXHVIRURXUVWDNHKROGHUVDQGWKH
EXVLQHVV2QFHD\HDUZHLQYLWHDVHOHFWHG
JURXSRISHRSOHWRD*URXSVWDNHKROGHU
IRUXPZKHUHZHSUHVHQWEULHIVRQWZR
WRWKUHHPDWHULDOLVVXHVDQGVHHNLQSXW
WRWKHVHDQGDOORWKHUPDWHULDOLVVXHVLQ
SOHQDU\VHVVLRQVURXQGWDEOHGLVFXVVLRQV
DQGSHUVRQDOLQWHUYLHZVb5HDGPRUHRQ
VWDNHKROGHUHQJDJHPHQWRQRXUZHEVLWH
3ULRULWLVDWLRQRIRXUPDWHULDOLVVXHVLQFOXGHV
LQSXWIURPRYHUH[WHUQDOVWDNHKROGHUV
LGHQWLHGDVLPSRUWDQWWRRXUbPDUNHWVDQG
WKH*URXSDVDZKROH,QSXWbLVFROOHFWHG
WKURXJKDQRQOLQHVXUYH\LQbZKLFKZH
JLYHRXUVWDNHKROGHUVWKHRSSRUWXQLW\WR
SURYLGHUHFRPPHQGDWLRQVFRPPHQWV
DQGIHHGEDFN:HFRQVLGHUPDWWHUV
LGHQWLHGGXULQJVWDNHKROGHUDQDO\VLV
ZLOObFRQWLQXHWRFKDQJH:HDUHFRQVFLRXV
RIWKHIDFWWKDWRXUPDWHULDOLVVXHVDUH
LQWHUFRQQHFWHGDQGWKH\VKDSHRXU
VWUDWHJLFIRFXVDUHDVDQGDFWLRQVLQDQ
LQWHJUDWHGZD\
,QZHLQLWLDWHGDVWDQGDUGZD\
RIbDVVHVVLQJPDWHULDOLW\DQGHQJDJLQJ
VWDNHKROGHUVIRUDOORXUORFDORSHUDWLRQV
UHSRUWVZKLFKDOVRLQIRUPVWKH*URXS
PDWHULDOLW\SURFHVV0DUNHWVXVHWKH
VDPHbVWDQGDUGVHWRIPDWHULDOLVVXHV
DVWKHb*URXSDQGPD\DPHQGWKHVHE\
DGGLQJXSWRWKUHHRWKHUVZKLFKDUHRI
ORFDOUHOHYDQFHZLWKWKHHQGRUVHPHQW
RIWKHORFDOOHDGHUVKLSWHDPV7RDVVHVV
WKHSRWHQWLDOVRFLDOHFRQRPLFDQG
HQYLURQPHQWDOLPSDFWRIWKHPDWHULDO
LVVXHVRQRXUEXVLQHVVZHFRQGXFWDQ
RQOLQHVXUYH\RIRXUWRSEXVLQHVV
OHDGHUVZKLFKLVWKHQYHWWHGE\
RXUb6XVWDLQDELOLW\6WHHULQJ&RPPLWWHH
DQGWKH%RDUG&RUSRUDWH6RFLDO
5HVSRQVLELOLW\&RPPLWWHH
3/16/17 2:31 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
Material issues matrix

Importance to stakeholders



 5 2 1

Corporate Governance
7 4 3
 10 8
12 9 6
11





      
Potential economic, social and environmental impacts on our business
Key

Financial Statements
3DFNDJLQJUHF\FOLQJDQGZDVWH &RPPXQLW\LQYHVWPHQW
1 3URGXFWTXDOLW\DQGLQWHJULW\ 5 PDQDJHPHQW 9 DQGHQJDJHPHQW
2 &RUSRUDWHJRYHUQDQFHEXVLQHVV 6 (PSOR\HHZHOOEHLQJ 10 +XPDQULJKWVDQGGLYHUVLW\
HWKLFVDQGDQWLFRUUXSWLRQ DQGHQJDJHPHQW
3 +HDOWKDQGQXWULWLRQ 7 5HVSRQVLEOHPDUNHWLQJ 11 'LUHFWDQGLQGLUHFW
HFRQRPLFLPSDFWV
4 :DWHUVWHZDUGVKLS 8 6XVWDLQDEOHVRXUFLQJ 12 &DUERQDQGHQHUJ\

2XUPDWHULDOLVVXHVDQGKRZWKH\LQXHQFHRXUDELOLW\WRbFUHDWHYDOXHRYHUWLPH

Swiss Statutory Reporting

Here we describe the importance of our material issues in the business context and how we address them, including setting and
disclosing targets and metrics to measure progress. We have a set of commitments disclosed in this report as well as on our website
with clear targets that the business commits to achieve by 2020, and executive compensation linked to these targets.

Economic dimension WKHKLJKHVWOHYHOIRUHQYLURQPHQWDOVRFLDO 7KHVHDFWLYLWLHVJHQHUDWHLQFRPHIRU

DQGJRYHUQDQFHLVVXHVUHODWHGWRWKH
Corporate governance, business EXVLQHVVDQGZHbGLVFORVHLQIRUPDWLRQDERXW
ethics and anti-corruption %RDUGLQGHSHQGHQFHDQGSHUIRUPDQFH
&RQGXFWLQJDOOEXVLQHVVDFWLYLWLHVZLWK LQFOXGLQJbDbVNLOOVPDWUL[)RUPRUHLQIRUPDWLRQ
SOHDVHUHDGWKH&RUSRUDWH*RYHUQDQFH
HPSOR\HHVDQGUHYHQXHIRUVXSSOLHUV
DQGFRQWUDFWRUVLPSURYHRXUFXVWRPHUV
SURWDELOLW\DQGVXSSRUWSXEOLFZHOOEHLQJ
DQGLQIUDVWUXFWXUHWKURXJKWD[SD\PHQWV
GXHVDQGIHHV<RXFDQQGRXWPRUH
Supplementary Information

LQWHJULW\DQGUHVSHFWIRUVRFLHW\LVRISULPDU\
LPSRUWDQFHIRU&RFD&ROD+%&%HLQJD VHFWLRQRIWKLVUHSRUWRQSDJHV DERXWRXUWD[HVSDLGRQSDJH:HDOVR
JRRGFRUSRUDWHFLWL]HQPHDQVKDYLQJD DQGRXU*5,FRPPXQLFDWLRQVDQGSURJUHVV FRQWULEXWHE\LQYHVWLQJLQFRPPXQLW\
VWURQJIRXQGDWLRQLQEXVLQHVVHWKLFVDQG UHSRUWRQRXUZHEVLWH SURJUDPPHVWRDGGUHVVHQYLURQPHQWDO
PDLQWDLQLQJZHOOHVWDEOLVKHGSURFHVVHV *5,DVSHFWVFRPSOLDQFHZLWK DQGVRFLDOLVVXHV:HPDNHVXUHWKDWEHVW
DQGV\VWHPVIRUPDQDJLQJQDQFLDODQG HQYLURQPHQWDOSURGXFWUHVSRQVLELOLW\ EXVLQHVVSUDFWLFHVDUHVXFFHVVIXOO\DGDSWHG
QRQQDQFLDOGLPHQVLRQVRISHUIRUPDQFH DQGVRFLHWDODVSHFWVDQWLFRPSHWLWLYH IRUDQGDSSOLHGLQHPHUJLQJPDUNHWV:H
ZKLFKLQWXUQEXLOGVWKHWUXVWDQGUHSXWDWLRQ EHKDYLRXUDQWLFRUUXSWLRQSXEOLFSROLF\ HPSOR\PRUHWKDQHPSOR\HHV
RI&RFD&ROD+%&:HDGGUHVVFRUSRUDWH :LWKLQWKH(XURSHDQ8QLRQWKH&RFD&ROD
JRYHUQDQFHKROLVWLFDOO\PDLQWDLQLQJD Direct and indirect economic 6\VWHPVXSSRUWVPRUHWKDQ
]HURWROHUDQFHFXOWXUHUHODWHGWREUHDFKHV impacts GLUHFWDQGLQGLUHFWMREVLQRXUYDOXHFKDLQ
RIRXU&RGHRI%XVLQHVV&RQGXFWDQG :HVRXUFHLQJUHGLHQWVUDZPDWHULDOV
$VDEXVLQHVVRSHUDWLQJLQFRXQWULHV HTXLSPHQWDQGVHUYLFHVIURPDSSUR[LPDWHO\
DQWLEULEHU\SROLFLHVZKLOHPDNLQJVXUH LQ(XURSH$IULFDDQG$VLDZHFRQWULEXWH
DOORIRXUSHRSOHDUHWUDLQHGRQWKHVH VXSSOLHUV,QRXUWRWDOVXSSOLHU
WRORFDOHFRQRPLHVDQGSXEOLFQDQFHV VSHQGZDVPLOOLRQDQGZHSDLG
SROLFLHVHYHU\WZR\HDUV2XU%RDUGDQG WKURXJKRXUFRUHEXVLQHVVDFWLYLWLHV
LWVFRPPLWWHHVDVVXPHUHVSRQVLELOLW\DW PLOOLRQLQWD[HVDFURVVDOORXUPDUNHWV

COC016_.indb 23 3/16/17 2:31 PM

  Coca-Cola HBC
2016 Integrated Annual Report
5LVNDQGPDWHULDOLW\FRQWLQXHG
:HUHJXODUO\FRQGXFWVRFLRHFRQRPLF
LPSDFWVWXGLHVWREHWWHUXQGHUVWDQG
RXULPSDFWRQORFDOHFRQRPLHVLQDOORXU
PDUNHWV0RUHDERXWWKLVFDQEHIRXQGLQ
WKH&RPPXQLW\WUXVWVHFWLRQRQSDJHV
RIWKLVUHSRUWDQGWKH*5,WDEOHV
RQRXUZHEVLWH
*5,DVSHFWVHFRQRPLFSHUIRUPDQFH
EHYHUDJHVDUHRIKLJKTXDOLW\DQGSHRSOH
WUXVWRXUSURGXFWVDQGEUDQGVPDLQWDLQLQJ
DQGJURZLQJWKHYDOXHRIWKHVHLQWDQJLEOH
DVVHWV)RUPRUHLQIRUPDWLRQSOHDVHVHH
RXU*5,FRPPXQLFDWLRQVSURJUHVVUHSRUW
*5,DVSHFWSURGXFWUHVSRQVLELOLW\
Responsible marketing
SODQQLQJDQGEHFRPLQJRQHRIWKHUVW
FRPSDQLHVLQWKHZRUOGZLWKVFLHQFHEDVHG
FDUERQUHGXFWLRQWDUJHWVDFURVVRXUYDOXH
FKDLQ5HDGPRUHDERXWbRXULQLWLDWLYHVDQG
WKHbFRVWLPSOLFDWLRQVDQGULVNVDVVRFLDWHG
ZLWKFDUERQDQGHQHUJ\RQSDJHV
DQGRIWKLVUHSRUW
*5,DVSHFWVHQHUJ\HPLVVLRQVWUDQVSRUW
PDUNHWSUHVHQFHLQGLUHFW
HFRQRPLFLPSDFWV
Health and nutrition
:HUHFRJQLVHWKHULVLQJLQFLGHQFHRIREHVLW\
DVDVHULRXVDQGFRPSOH[JOREDOKHDOWK
FKDOOHQJH(QVXULQJWKDWRXUSURGXFWVFDQ
EHSDUWRIDEDODQFHGGLHWFRPELQHGZLWK
DKHDOWK\OLIHVW\OHLVRINH\LPSRUWDQFHIRU
WKHORQJWHUPVXFFHVVRIRXUEXVLQHVV
DQGWKHRYHUDOO&RFD&ROD6\VWHP:HDUH
2XUDGYHUWLVLQJDQGSURPRWLRQVUHDFK
PLOOLRQVRIRXUFRQVXPHUVDQGWKLVLVD
UHVSRQVLELOLW\ZHWDNHYHU\VHULRXVO\2XU
DSSURDFKWRUHVSRQVLEOHPDUNHWLQJWKH
ZD\ZHHQJDJHLQGLUHFWFRPPHUFLDODFWLYLW\
DQGWKHZD\ZHDGYHUWLVHDQGSURPRWH
LPSDFWRXUVDOHVYROXPHVUHYHQXHVDQG
FRUSRUDWHUHSXWDWLRQ
:HFRPSO\ZLWK7KH&RFD&ROD&RPSDQ\V
*OREDO5HVSRQVLEOH0DUNHWLQJ3ROLF\
DQGDUHVLJQDWRULHVRIWKH(XURSHDQ6RIW
SURGXFWVDQGVHUYLFHVHQYLURQPHQWDO
HQYLURQPHQWDOLQYHVWPHQWV
Packaging, recycling and waste
management
3DFNDJLQJSOD\VDYLWDOUROHLQNHHSLQJ
RXUSURGXFWVIUHVKDQGVDIH6XVWDLQDEOH
SDFNDJLQJDQGZDVWHPDQDJHPHQWDUH
LPSRUWDQWWRRXUEXVLQHVVJLYHQWKH
DPRXQWRISDFNDJLQJZHXVHDQGWKHQHHG
WRUHFRYHUDQGUHF\FOHSDFNDJLQJPDGHRI
FRPPLWWHGWRVXSSRUWLQJFRQVXPHUVWR
PDNHPRUHUHVSRQVLEOHFKRLFHVDERXWWKH
EHYHUDJHVWKH\FRQVXPH:HRHUDZLGH
FKRLFHRIEHYHUDJHVDQGSDFNDJHVL]HV
GULYHDYDLODELOLW\RIRXUQRRUORZVXJDU
RSWLRQVDQGSURYLGHFOHDUWUDQVSDUHQW
QXWULWLRQDOLQIRUPDWLRQRQDOORXUEUDQGV
7KH&RFD&ROD&RPSDQ\LVUHVSRQVLEOH
IRUSURGXFWLQQRYDWLRQGHYHORSPHQW
ODEHOOLQJDQGFRQVXPHUPDUNHWLQJIRUWKH
PDMRULW\RIEUDQGVZHSURGXFHDQGVHOO7KH
&RFD&ROD&RPSDQ\DQQRXQFHGDVHULHV
RIFRPPLWPHQWVWKDWRXUJOREDOEXVLQHVV
V\VWHPZLOOVHHNWRDFKLHYHE\6HH
PRUHGHWDLOVLQWKH&RQVXPHUUHOHYDQFH
VHFWLRQRIbWKLVUHSRUWRQSDJHV
*5,DVSHFWSURGXFWUHVSRQVLELOLW\
Product quality and integrity
2XUSURGXFWVDUHGHVLJQHGWRUHIUHVKRXU
FRQVXPHUVDQGVDWLVI\FXVWRPHUQHHGV
DQGbRXUEXVLQHVVGHSHQGVRQSURGXFW
TXDOLW\DQGLQWHJULW\IRUPDUNHWOHDGHUVKLS
VDOHVYROXPHVUHYHQXHVDQGFRPPXQLW\
WUXVW,QDGGLWLRQWRSURGXFWIXQFWLRQDOLW\
TXDOLW\VDIHW\WDVWHDQGGHVLJQLQWHJULW\
DOVRLQFOXGHVLQWDQJLEOHVVXFKDVEUDQG
HTXLW\RIWKHEHVWNQRZQEHYHUDJHEUDQGV
LQWKHZRUOG
:HRHUWKHKLJKHVWTXDOLW\EHYHUDJHVLQ
DOOPDUNHWVDQGDSSO\HQGWRHQGIRRGDQG
'ULQNV,QGXVWU\$VVRFLDWLRQ81(6'$
FRPPLWPHQWVFRPSOLDQFHZLWKZKLFKLV
UHJXODUO\FKHFNHGE\H[WHUQDOWKLUGSDUW\
DXGLWRUVFRQWUDFWHGE\81(6'$:H
RHUFKRLFHIURPPLQHUDOZDWHUVWKURXJK
VSDUNOLQJVRIWGULQNVWRMXLFHVDQG
RHUQRDQGORZFDORULHEHYHUDJHVLQDOORI
RXUPDUNHWV:HFRQVLGHUSULPDU\VFKRROV
WREHPDUNHWLQJIUHHSUHPLVHVZKLOHRQ
RXUFDQVDQGERWWOHVRXUFRQVXPHUVZLOO
QGLQIRUPDWLRQDERXWZKDWWKHGULQN
FRQWDLQVDQGKRZLWFRQWULEXWHVWRWKHLU
GDLO\FRQVXPSWLRQ)RUPRUHLQIRUPDWLRQ
SOHDVHVHHWKH&RQVXPHUUHOHYDQFH
VHFWLRQRIWKLVUHSRUWRQSDJHV
*5,DVSHFWSURGXFWUHVSRQVLELOLW\
Environmental dimension
Carbon and energy
)RU&RFD&ROD+%&HQHUJ\DQGFDUERQ
PDQDJHPHQWLVDVWUDWHJLFSULRULW\&OLPDWH
FKDQJHUHSUHVHQWVSRWHQWLDOULVNVWR
&RFD&ROD+%&VEXVLQHVVLQFOXGLQJWKH
SRVVLELOLW\RILQFUHDVHGHQHUJ\FRVWVFDUERQ
WD[DWLRQVXVWDLQDEOHVXSSOLHVRIZDWHU
DQGUDZPDWHULDOVDQGEXVLQHVVGLVUXSWLRQ
GXHWRVHYHUHZHDWKHUFRQGLWLRQV,WLV
DOVRDPDWHULDOLVVXHIRURXUEXVLQHVV
EHFDXVHFRQVXPSWLRQRIFROGEHYHUDJHVLV
LPSDFWHGE\ZHDWKHUZKLFKDOVRDHFWVRXU
DYDULHW\RIPDWHULDOVDIWHUWKHVHKDYHEHHQ
FRQVXPHG$VLJQLFDQWSDUWRIRXUVDOHV
FRPHVIURP'HYHORSLQJDQG(PHUJLQJ
PDUNHWVZKHUHZDVWHPDQDJHPHQW
LQIUDVWUXFWXUHVWLOOQHHGVWRGHYHORSWRDYRLG
ODQGOOLQJ7KURXJKH[WHQGHGSURGXFHU
UHVSRQVLELOLW\SROLFLHVSURGXFHUVVXFKDV
&RFD&ROD+%&FDQEHKHOGUHVSRQVLEOH
IRUQDQFLQJZDVWHPDQDJHPHQW
VFKHPHVZKLFKLQFUHDVHVFRVW
2XUXOWLPDWHJRDOLVWRFORVHWKHUHF\FOLQJ
ORRSFRQYHUWLQJXVHGSDFNDJLQJLQWRQHZ
:HPLQLPLVHWKHHQYLURQPHQWDOLPSDFWVRI
WKHSDFNDJLQJZHXVHDWHYHU\VWDJHRIWKH
OLIHF\FOHZRUNLQJRQGHVLJQLQJSDFNDJLQJ
WKDWLVOLJKWHUDQGPLQLPLVHVZDVWH:H
VXSSRUWSDFNDJLQJZDVWHPDQDJHPHQW
VFKHPHVWKDWUHFRYHUDQGUHF\FOHSRVW
FRQVXPHUSDFNDJLQJDQGUHFRYHUHGIRU
UHF\FOLQJRISDFNDJLQJPDWHULDOLQ
DFURVVRXUPDUNHWV:HZRUNZLWK
JRYHUQPHQWVRWKHULQGXVWU\PHPEHUV
FRPPXQLW\RUJDQLVDWLRQVFRQVXPHUVDQG
RWKHUVWRIXOORXUFRPPLWPHQWVDQGOHDG
DFWLRQVUHODWHGWRVXVWDLQDEOHSDFNDJLQJ
7KURXJKUHFRYHU\RUJDQLVDWLRQVZHLQYHVW
LQFRQVXPHUHGXFDWLRQDERXWWKHEHQHWV
DQGZD\VRIUHFRYHULQJSDFNDJLQJZDVWH
5HDGPRUHRQSDJHRIWKLVUHSRUWDQGWKH
*5,WDEOHVRQRXUZHEVLWH
*5,DVSHFWVPDWHULDOVHXHQWVDQGZDVWH
VDIHW\VWDQGDUGVZKLOVWPDLQWDLQLQJDVWURQJ
IRFXVRQZRUOGFODVVPLQGVHWRQIRRGDQG
VDIHW\LQWKHYDOXHFKDLQ)DLOXUHVWKDWUHVXOW
WRUHGXFWLRQRITXDOLW\RUSURGXFWVSRLODJH
DQGSURFHVVDQGSDFNDJLQJIDLOXUHVUHVXOW
LQUHGXFHGFRVWIRUWKHEXVLQHVV$ORZUDWH
RIFRQVXPHUFRPSODLQWVVKRZVWKDWRXU
COC016_.indb 24
VXSSOLHUVFXVWRPHUVDQGWKHFRPPXQLWLHV SURGXFWVDQGVHUYLFHVHQYLURQPHQWDO
ZKLFKZHVHUYH,QDGGLWLRQWRUHGXFLQJ HQYLURQPHQWDOLQYHVWPHQWV
RXUH[SRVXUHWRFOLPDWHFKDQJHULVNV
ZHVHHEXVLQHVVEHQHWVUHVXOWLQJIURP
RQJRLQJLQYHVWPHQWLQHQHUJ\HFLHQF\
DQGORZFDUERQWHFKQRORJLHVDSSO\LQJ
DFFRXQWLQJIRUVXVWDLQDELOLW\LQRXUEXVLQHVV
3/16/17 2:31 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

Sustainable sourcing
7KHVRXUFLQJRIRXUUDZPDWHULDOVDFFRXQWV
IRUDODUJHSRUWLRQRIRXUHFRQRPLF
RSHUDWLRQDODQGHQYLURQPHQWDOIRRWSULQW
DQGRXUVSHQGZLWKVXSSOLHUV:HGHSHQGRQ
VXVWDLQDEOHVXSSOLHVRIVXJDUDQGMXLFHEDVHV
PDGHRIIUXLWVDQGYHJHWDEOHVWRSURGXFHD
&RPPXQLW\ZDWHUSURMHFWVVXFKDV
UDLQZDWHUKDUYHVWLQJHFRV\VWHP
SUHVHUYDWLRQDQGZHWODQGSURWHFWLRQUHTXLUH
FRQWLQXRXVLQYHVWPHQWDQGGHGLFDWHGVWD
DVZHOODVVWUDWHJLFSDUWQHUVKLSVZLWKFLYLO
DQGJRYHUQPHQWDORUJDQLVDWLRQV
:HDUHFRPPLWWHGWRUHGXFLQJRXUZDWHU
Strategic Report
Employee well-being
DQGbHQJDJHPHQW
7KHVXFFHVVRIRXUEXVLQHVVDOVRGHSHQGV
RQRXUDELOLW\WRDWWUDFWDQGUHWDLQWDOHQWHG
KHDOWK\KDSS\DQGHQJDJHGSHRSOHZLOO
EHZRUNLQJLQDQLQFOXVLYHHQYLURQPHQW
,PSURYHPHQWLQZHOOEHLQJUHVXOWV

Corporate Governance
QXPEHURIRXUSURGXFWV$VDQLQWHJUDOSDUW
RIRXUEXVLQHVVPRGHOWKHSHUIRUPDQFH
RIRXUVXSSOLHUVGLUHFWO\LPSDFWV
WKHVXVWDLQDELOLW\SHUIRUPDQFHDQG
FRPPLWPHQWVRI&RFD&ROD+%&
HQFRPSDVVLQJDZLGHUDQJHRIHFRQRPLF
HQYLURQPHQWDODQGVRFLDOLPSDFWV:HDUH
FRPPLWWHGWRZRUNLQJZLWK7KH&RFD&ROD
&RPSDQ\DQGRXUVXSSOLHUVWRHQVXUHWKDW
ZHVRXUFHRXUNH\DJULFXOWXUDOLQJUHGLHQWV
VXVWDLQDEO\:HZRUNZLWKRXUVXSSOLHUVWR
HQVXUHFRPSOLDQFHZLWKWKH6XVWDLQDEOH
LQWHQVLW\OOEHYHUDJHSURGXFHGE\
EHWZHHQDQGE\OHYHUDJLQJ
$FFRXQWLQJIRU6XVWDLQDELOLW\SULQFLSOHVLQ
RXUEXVLQHVVSODQQLQJDQGDSSO\LQJWKHIXOO
FRVWRIZDWHULQRXUUHWXUQRQLQYHVWPHQW
FDOFXODWLRQV)XUWKHUZHDLPWRUHGXFH
RXUZDWHUXVHUDWLRWRUHDFKOORI
EHYHUDJHSURGXFHGFRQVLVWHQWO\IRFXVLQJ
RQDQGLQYHVWLQJLQZDWHUVDYLQJLQLWLDWLYHV
SDUWQHULQJZLWKVXSSOLHUVWRPLQLPLVHRXU
ZDWHUIRRWSULQWDFURVVWKHHQWLUHYDOXHFKDLQ
DQGFRPPLWWLQJDVDV\VWHPWRFHUWLI\
LQLPSURYHGZRUNSODFHSHUIRUPDQFH
LQFOXGLQJQDQFLDOSHUIRUPDQFHODERXU
SURGXFWLYLW\DQGWKHTXDOLW\RIRXWSXWV
6XVWDLQDEOHHQJDJHPHQWVFRUHVDUH
VWURQJO\DQGSRVLWLYHO\OLQNHGZLWKZRUNSODFH
SHUIRUPDQFHDQGDUHDNH\EXVLQHVV
LQGLFDWRUIRUDOOPDQDJHUVOHDGLQJWHDPV
ZLWKLQ&RFD&ROD+%&7UDLQLQJGHYHORSLQJ
PRWLYDWLQJDQGHQJDJLQJHPSOR\HHV
DQGSURYLGLQJDFFHVVWRHPSOR\HHZHOO
EHLQJSURJUDPPHVDQGDVDIHZRUNLQJ
HQYLURQPHQWDUHDWWKHFRUHRIRXU
Financial Statements
$JULFXOWXUH*XLGLQJ3ULQFLSOHV6$*3E\ RIRXUSODQWVDFFRUGLQJWRWKH(XURSHDQ FRUSRUDWHFXOWXUH0RUHDERXWHPSOR\HH
DQGZHKDYHDFOHDUURDGPDSLQSODFH :DWHU6WHZDUGVKLS(:6RU$OOLDQFHIRU ZHOOEHLQJKXPDQFDSLWDOGHYHORSPHQWDQG
WRDFKLHYHWKLVJRDO$OORXUVXSSOLHUVDUH :DWHU6WHZDUGVKLS$:6VWDQGDUGV KHDOWKDQGVDIHW\FDQEHIRXQGRQSDJHV
UHTXLUHGWRDGKHUHWRRXU6XSSOLHU*XLGLQJ )RUGHWDLOVRQZDWHUUHODWHGWDUJHWVWR RIWKH3HRSOHVHFWLRQRIWKLVUHSRUW
3ULQFLSOHVDQGZHDUHPHPEHUVRI6('(; GDWHSOHDVHVHHWKH&RVWOHDGHUVKLSDQG DQGLQWKH*5,FRPPXQLFDWLRQRQSURJUHVV
6XSSOLHU(WKLFDO'DWD([FKDQJHDQRWIRU
SURWPHPEHUVKLSRUJDQLVDWLRQGHGLFDWHG
WRGULYLQJLPSURYHPHQWVLQHWKLFDODQG
UHVSRQVLEOHEXVLQHVVSUDFWLFHVLQJOREDO
&RPPXQLW\WUXVWVHFWLRQVRIWKLVUHSRUW
*5,DVSHFWVODERXUSUDFWLFHVDQG
RQSDJHVb
GHFHQWZRUN
*5,DVSHFWVZDWHUELRGLYHUVLW\
Human rights and diversity
VXSSO\FKDLQV
*5,DVSHFWVSURFXUHPHQWSUDFWLFHV
VXSSOLHUHQJDJHPHQWDQGDVVHVVPHQW
KXPDQULJKWVFKLOGDQGIRUFHGODERXU
Water stewardship
:DWHULVWKHSULPDU\LQJUHGLHQWRIRXU
SURGXFWVLVFHQWUDOWRRXUPDQXIDFWXULQJ
SURFHVVHVDQGQHFHVVDU\WRJURZWKH
DJULFXOWXUDOLQJUHGLHQWVVXJDUIUXLWV
SURGXFWVDQGVHUYLFHVHQYLURQPHQWDO
HQYLURQPHQWDOLQYHVWPHQWV
Social dimension
Community investment
DQGbHQJDJHPHQW
7KHVXFFHVVRIRXUEXVLQHVVGHSHQGV
RQWKHVWUHQJWKDQGZHOOEHLQJRIWKH
FRPPXQLWLHVLQZKLFKZHRSHUDWH
+DYLQJDFOHDUGLUHFWLRQDQGIRFXVIRU
JXLGLQJFRPPXQLW\LQYHVWPHQWDQG
2XUSHRSOHDUHRXUPRVWLPSRUWDQWDVVHW
DQGNH\WRWKHVXFFHVVRIRXUEXVLQHVV:H
Swiss Statutory Reporting
VHHNWRFUHDWHDZRUNLQJHQYLURQPHQWWKDW
IRVWHUVGLYHUVLW\DQGLQFOXVLRQPDNLQJVXUH
WKDWKXPDQULJKWVDUHIXOO\UHFRJQLVHGDQG
UHVSHFWHGDFURVVWKHYDOXHFKDLQ7KHLVVXH
RIKXPDQULJKWVLVFHQWUDOWRJRRGFRUSRUDWH
FLWL]HQVKLSDQGWRDKHDOWK\ERWWRPOLQH
2XU+XPDQ5LJKWV3ROLF\LVJXLGHGE\
LQWHUQDWLRQDOKXPDQULJKWVSULQFLSOHV
YHJHWDEOHVIRURXUSURGXFWV6XFLHQW
DPRXQWVRIDFFHVVLEOHVDIHJRRGTXDOLW\
ZDWHUDQGVDQLWDWLRQDUHHVVHQWLDOWRWKH
KHDOWKRISHRSOHDQGHFRV\VWHPV7KLVLVVXH
LVKLJKRQWKHSROLWLFDODJHQGDHVSHFLDOO\
LQWRRXU(PHUJLQJPDUNHWVDQGDUHDVRI
ZDWHUVFDUFLW\ZKHUHJRYHUQPHQWVPD\
LPSRVHZDWHUUHODWHGWD[HV,QQRYDWLRQ
DQGLQYHVWPHQWLQWHFKQRORJLHVHQDEOLQJ
PRUHHFLHQWZDWHUXVHDQGZDVWHZDWHU
WUHDWPHQWFDQVDYHFRVWV
COC016_.indb 25
HQJDJHPHQWLQRXUFRXQWULHVRIRSHUDWLRQ
HQDEOHVRXUFRPPXQLWLHVDQGRXU
EXVLQHVVWRJURZ
2XUFRPPXQLW\LQYHVWPHQWDQG
HQJDJHPHQWIRFXVHVRQWKHDUHDVRI\RXWK
HPSRZHUPHQWHQYLURQPHQWDODQGZDWHU
VWHZDUGVKLSDQGFRPPXQLW\ZHOOEHLQJ
:HDUHFRPPLWWHGWRLQYHVWLQJRI
RXUSUHWD[SURWLQWRRXUFRPPXQLWLHV
DQGLQFUHDVLQJWKHQXPEHURIYROXQWHHUV
VXSSRUWLQJFRPPXQLW\SURMHFWVLQZRUN
WLPHIURPWRE\)RUPRUH
LQIRUPDWLRQSOHDVHVHHWKH&RPPXQLW\
WUXVWVHFWLRQRIWKLVUHSRUWRQSDJHV
DQGRXUFRPPLWPHQWV
*5,DVSHFWVORFDOFRPPXQLWLHV
HQFRPSDVVHGLQWKH8QLYHUVDO'HFODUDWLRQ
RI+XPDQ5LJKWVWKH,QWHUQDWLRQDO/DERXU
2UJDQL]DWLRQV'HFODUDWLRQRQ)XQGDPHQWDO
Supplementary Information
3ULQFLSOHVDQG5LJKWVDW:RUNWKH8QLWHG
1DWLRQV*OREDO&RPSDFWDQGWKH8QLWHG
1DWLRQV*XLGLQJ3ULQFLSOHVRQ%XVLQHVVDQG
+XPDQ5LJKWV7KHSHUFHQWDJHRIZRPHQ
LQRXUZRUNIRUFHZDVLQZLWK
ZRPHQLQPDQDJHPHQWPDNLQJXSRI
DOOPDQDJHUVbZKLOHRIPDQDJHPHQW
WUDLQHHVKLUHGLQZHUHZRPHQ0RUH
DERXWKXPDQULJKWVFDQEHIRXQGRQSDJH
LQWKH3HRSOHVHFWLRQRIWKLVUHSRUWDQG
RQRXUZHEVLWH
*5,DVSHFWVKXPDQULJKWVGLYHUVLW\DQG
HTXDORSSRUWXQLW\ODERXUSUDFWLFHV
3/16/17 2:31 PM
 Coca-Cola HBC
26 2016 Integrated Annual Report
Market review
Staying on top by successfully
addressing evolving trends
and preferences
Positive macroeconomic and
industry trends
After six years of operating against
a very challenging macroeconomic
backdrop, we now see signs of
improvement, with moderate GDP
JURZWKDQGDEDWLQJGHDWLRQDU\WUHQGV
despite unemployment rates being
high in some of our markets. The
non-alcoholic ready-to-drink category
is expected to return to growth in our
territory, with acceleration post 2017.
With such a vast geographic footprint,
trading conditions vary from market to
market. However, the average forecast
industry volume growth for 2016-2020
is 1.5% p.a.
+1.5% p.a.
2016-2020 NARTD volume growth
Focus on sustainable practices
Todays consumers have an inherent
expectation that the companies behind
the brands they choose are ethical and
follow responsible business practices.
Synergies between suppliers and
retailers, along with stricter regulations,
help elevate product sustainability in all
aspects of the supply chain.
66%
Global respondents willing to
pay more for sustainable products
6RXUFH1LHOVHQ*OREDO6XUYH\RI&65bDQG
Sustainability (March 2015 online survey to
60 countries worldwide)
COC016_.indb 26
Dynamic retail environment
Channel dynamics are shifting
towards organised trade with gradual
consolidation of retailers, the growth
of discounters and weakening
performance of big-box grocery stores.
Retailers invest in customer loyalty with
sophisticated promotion plans. Online
VKRSSLQJLVH[SDQGLQJDQGRHUVDJUHDW
opportunity for growth for the consumer
goods industry.
15% 25%
5HGXFWLRQ{RIDYHUDJHDVVRUWPHQW
size in Europe by 2025
Source: Bain & Company, April 2016
Health concerns and regulatory environment
Consumer concerns over calorie intake,
VXJDUDQGVDIHW\RIDUWLFLDOLQJUHGLHQWV
continue to escalate, shifting demand
towards low-calorie, organic or more
59%
Europeans who never or seldom
play sport or exercise
Source: Eurobarometer, March 2014
Changing consumer habits
We notice a growing reliance on
digital communications among our
consumers, changing the way they
perceive and connect with brands.
Eating habits are changing as well;
there is a shift towards eating quick,
solitary, yet healthy meals anytime
GXULQJWKHGD\LQVWHDGRI[HGPHDO
times and eating with others. Limited
disposable income increases focus
on purchases that represent value
for money and maintains the trend of
shopping locally with small baskets.
55%
Individuals in the European
Union aged 16-74 who have
purchased online in the past
12 months
Source: Eurostat, 2016
traditional
products. Childhood obesity and diet-
related health conditions are the focus of
campaigns urging governments to take
action. Regulatory bodies are responding
with a range of measures from clear
nutritional labelling to taxing products
with sugar.
3/16/17 2:32 PM
 Coca-Cola HBC
2016 Integrated Annual Report 27

Strategic Report
We remain agile by keeping on top of macroeconomic trends and changes
LQbFXVWRPHUDQGFRQVXPHUSUHIHUHQFHVDQGDGMXVWLQJRXUSURGXFWSRUWIROLR
DQGbSURFHVVHVDFFRUGLQJO\

Corporate Governance
Integrating sustainability into the way we do business Forming a lean organisation that allows for
Promoting clear facts about our Minimising our environmental operating leverage
products, including transparent impact by consistently reducing Continuing production Leveraging the SAP
nutritional labelling. our water and energy use and optimisation, by platform across the
Ensuring superior quality and carbon emissions. consolidating our *URXSWRGULYHHFLHQF\
production plants

Financial Statements
taste in our products, as a result Increasing productivity
of rigorous controls. without losing capacity. by harmonising formulas
Marketing responsibly, including Achieving logistics and packages.
optimisation, by
no advertising to children under
12 anywhere in our markets. 7.3m reducing the number
of warehouses and
Investing in community Given to socially
responsible distribution centres and
programmes that create shared
programmes in 2016 by outsourcing.
value for our business and our
stakeholders.
-260 bps
2HULQJFKRLFHDQGLQQRYDWLRQ Reduction in comparable

Swiss Statutory Reporting

operating expense as
Promoting innovative new sparkling beverage
% of NSR since 2008
recipes with lower calories or no sugar.
2HULQJDYDULHW\RISDFNDJHVL]HVWKDWFDQVHUYH Focusing on value growth
30% WKHVSHFLFQHHGVRIHDFKFRQVXPHUIRUHYHU\
occasion, including packs for small baskets.
Capitalising on meals Implementing
Reduction in calories in and socialising occasions sophisticated pricing
Fanta, Sprite and Nestea Providing and shaping choice, with a balanced with Meals and Coke. strategies, supported
since 2010 portfolio in which still beverages such as water Value is driven by by the gradual recovery
and juice account for 30% of our volume. creating associations ZHVHHLQLQDWLRQDQG
with food and activating disposable income.
single-serve packs.
Supplementary Information

Improving our package

Ensuring sustainable
volume growth
Expanding route-to-market,
with optimal service to each
customer based on their
potential.
Executing in-store with
excellence in order to fully
capitalise on each customers
potential.
Creating joint value with
customers by understanding
and prioritising various
occasions of consumption
and working together to grow
overall sales volume.
Investing in water, which has
excellent growth prospects
for the years to come, with a
continuous focus on value.
+5.5pp
RED score in 2016
mix by growing
single-serve package
+2.9%
*URZWK{LQ);QHXWUDO
contribution to our
revenue per case
total volume through
numerous initiatives
including investment
in coolers.
Capturing the growth
opportunity in hotels,
restaurants and cafes
(HoReCa), where we
achieve higher revenue
per case.

COC016_.indb 27 3/16/17 2:32 PM

 Coca-Cola HBC
28 2016 Integrated Annual Report

Established markets

Focusing on value
and execution

Highlights for the year Established markets

2016 2015 % change volume breakdown
Volume (million unit cases) 606.6 621.1 -2.3%
1HWVDOHVUHYHQXH{( million) 2,407.8 2,485.6 -3.1%
2SHUDWLQJSURW(%,7bPLOOLRQ 236.8 171.3 b
&RPSDUDEOH(%,7{( million) 242.3 198.8 21.9%
Total taxes{( million) 120.7 105.7 14.1%
Population{(million) 91.3 90.8 0.6%
*'3SHUFDSLWD{(US$) 36,349 35,843 1.4%
%RWWOLQJSODQWV{(number) 13 14 -7.1%
(PSOR\HHV{(number) 6,744 6,642 1.5%
Italy: 42%
:DWHUIRRWSULQW{(billion litres) 5.4 5.3 1.9% Greece: 17%
&DUERQHPLVVLRQV{(tonnes) 114,329 125,859 -9.2% Austria: 14%
6DIHW\UDWH{(lost time accidents Switzerland: 12%
Ireland: 12%
>1 day per 100 employees) 0.94 1.14 -17.5% Cyprus: 3%
1. Total taxes includes corporate income tax, withholding tax and deferred tax, as well as social security costs and
RWKHUWD[HVWKDWDUHUHHFWHGDVRSHUDWLQJH[SHQVHVDVSHU,)56DFFRXQWV
 3RSXODWLRQVRXUFH,QWHUQDWLRQDO0RQHWDU\)XQG:RUOG(FRQRPLF2XWORRN'DWDEDVH2FWREHUb1RUWKHUQ
,UHODQG1,65$1RUWKHUQ,UHODQG6WDWLVWLFVDQG5HVHDUFK$JHQF\2FHIRU1DWLRQDO6WDWLVWLFV8.1RUWKHUQ
,UHODQG(FRQRPLF2XWORRN6HSWHPEHUb,WDOLDQGDWD6LFLOLDQSRSXODWLRQH[FOXGHGEDVHGRQGDWDIURP
ISTAT (Italian National Institute of Statistics).
Percentage changes are calculated on precise numbers.
In our Established markets segment,
volume declines and negative currency
XFWXDWLRQVFDXVHGVDOHVUHYHQXHWRIDOO
1HYHUWKHOHVVSURWVLQFUHDVHGODUJHO\
GXHWRRXUORQJWHUPHRUWVWRRSWLPLVH
infrastructure and contain costs.
Volume decline of 2.3% was primarily
driven by the water category, following the
delisting of our low-value water brands in
Italy and cooler summer weather compared
to the very hot summer in 2015 that had
fuelled water category growth, as well as
lower volume in the sparkling category. The
launches of Monster, Coke Life and a new
)DQWD6OLGHUERWWOHLQ,WDO\DVZHOODV&RNH
Life in Austria, supported consumer choice
WKURXJKLQQRYDWLRQ&RNH=HUR)DQWDDQG
Schweppes sales also performed well.
COC016_.indb 28
:KLOHVDOHVUHYHQXHVXHUHGDVDUHVXOW Volume vs. 2015
of lower volume, negative currency
impact, price mix deterioration in an
RYHUDOOGHDWLRQDU\HQYLURQPHQWDQG
negative channel mix, we succeeded in
-2.3%
improving both category and package mix. FX-neutral NSR per u.c.
Increased sales of high-value, single-serve improvement
packs, driven by our initiatives in the
immediate consumption channel, were
particularly notable.
%HQHWVIURPUHYHQXHJURZWKPDQDJHPHQW
+0.3%
initiatives, lower operating expenses and Comparable EBIT margin
IDYRXUDEOHLQSXWFRVWVPRUHWKDQRVHW vs. 2015
the negative impact of lower volume and
pricing pressure. Comparable operating
SURWLPSURYHGE\WRPLOOLRQ
leading to a 210 basis-point expansion in the
+210 bps
Established markets comparable operating
SURWPDUJLQWR
3/16/17 2:32 PM
 Coca-Cola HBC
2016 Integrated Annual Report 29

Strategic Report
Supporting cycling culture in Ireland
In Ireland, more than 15 million journeys have been
WDNHQRQb&RFD&ROD=HUR'XEOLQELNHVVLQFHWKH
initiative launched in 2009. Our support extends
WRbFLW\ELNHVFKHPHVLQ%HOIDVW&RUN*DOZD\
and Limerick and is part of our commitment to
HQFRXUDJHDFWLYHKHDOWK\OLIHVW\OHV$FURVVWKHYH

Corporate Governance
initiatives, about 13,000 cycle journeys are taken on
DQbDYHUDJHGD\

7KLV\HDU\RXPDQDJHGWRLPSURYH
SURWDELOLW\VLJQLFDQWO\GHVSLWHORZHUVDOHV
volume. Can you explain some of the
initiatives that helped achieve this?
This performance is indicative of what we expect to happen in the

Established markets. Our practice during the last few years is to focus
on what we can control, so we have taken many initiatives to take cost
out. Most of our infrastructure and logistics optimisation in Europe has
been completed, giving us very powerful operating leverage. In addition
WRWKHDERYHZHKDYHEHHQDLGHGLQDFKLHYLQJRXUSURWDELOLW\WDUJHW
by successful procurement decisions like locking sugar prices in at the
right moment, commercial initiatives like delisting lower-value water
brands in Italy, and our operating expense control.
How can this segment with mature Western
European markets support top-line growth in
the future? Do you see any risk in your sales
Financial Statements
Optimising water portfolio in Italy
Early in the year, we determined that low-value water
brands should be removed from the Italian market.
The decision was driven by the need to optimise
our water portfolio in the country in line with our
UHYHQXHJURZWKVWUDWHJ\)ROORZLQJWKLVFKDQJH
ZKLFKZDVFRPSOHWHGE\WKHHQGRIWKHUVWTXDUWHU
we have seen healthy growth in volume for the

Swiss Statutory Reporting

volume growth assumptions? Lilia and Sveva brands which we continue to sell in
,WDO\:DWHUVDOHVLQWKHFRXQWU\KDYHDOVREHQHWHG
,WDO\:DWHUVDOHVLQWKH
,QRXU(VWDEOLVKHGbPDUNHWVZHH[SHFWPRGHVW
KHGbPDUNHWVZHH[SHFWPRGHVW
from improvement in ssingle-serve pack sales
volume growth th in the years to come, driven
DQGbKLJKHUPDUJLQV
by improving GDP per capita and abating
GHDWLRQDU\WUHQGV,WLVWUXHWKDW
WUHQGV,WLVWUXHWKDW
growing healthalth awareness and stricter
UHJXODWRU\HQYLURQPHQWVFDQDHFW
HQYLURQPHQWVFDQDHFW
our performance.
mance. As a response,
DQGbLQOLQHZLWKRXUUHYHQXHJURZWK
ZLWKRXUUHYHQXHJURZWK
managementment strategy, we focus
RQbLQQRYDWLRQERWKLQDYRXUV
DWLRQERWKLQDYRXUV
Supplementary Information

DQGbLQbSDFNDJHRSWLRQVSURYLGLQJ
FNDJHRSWLRQVSURYLGLQJ
consumers ers with more choices.
Top-line e growth in the Established
marketss is expected to come
mostly from category and price
mix and,
d, to a lesser extent, from
YROXPH:HDUHFRQGHQWWKDW
H:HDUHFRQGHQWWKDW
RXUbDVVXPSWLRQVVXSSRUWLQJ
VVXPSWLRQVVXSSRUWLQJ
RXUbORQJWHUPQDQFLDO
RQJWHUPQDQFLDO
WDUJHWVbDUHYDOLG
HWVbDUHYDOLG

Sotiris
otiris Yannopoulos
Region
egion Director

COC016_.indb 29 3/16/17 2:32 PM

 Coca-Cola HBC
30 2016 Integrated Annual Report

Developing markets

Continuing volume growth

Highlights for the year Developing markets

2016 2015 % change volume breakdown
Volume (million unit cases) 383.5 378.7 1.3%
1HWVDOHVUHYHQXH{( million) 1,094.2 1,092.0 0.2%
2SHUDWLQJSURW(%,7 ( million) 92.9 87.4 6.3%
&RPSDUDEOH(%,7{( million) 97.1 98.6 -1.5%
Total taxes{( million) 54.0 56.0 -3.4%
Population{(million) 76.0 76.0
GDP per capita (US$) 13,861 13,756 0.8%
%RWWOLQJSODQWV{(number) 8 9 -11.1%
(PSOR\HHV{(number) 4,980 5,315 -6.3%
Poland: 44%
:DWHUIRRWSULQW{(billion litres) 2.2 2.3 -4.3% Hungary: 22%
&DUERQHPLVVLRQV{(tonnes) 89,323 108,404 -17.6% Czech Republic: 13%
6DIHW\UDWH{(lost time accidents Baltics: 7%
Croatia: 7%
>1 day per 100 employees) 0.66 0.54 22.2% Slovakia: 5%
Slovenia: 2%
1. Total taxes includes corporate income tax, withholding tax and deferred tax, as well as social security costs and
RWKHUWD[HVWKDWDUHUHHFWHGDVRSHUDWLQJH[SHQVHVDVSHU,)56DFFRXQWV
 3RSXODWLRQVRXUFH,QWHUQDWLRQDO0RQHWDU\)XQG:RUOG(FRQRPLF2XWORRN'DWDEDVH2FWREHUb
Percentage changes are calculated on precise numbers.

While volume and net sales revenue
improved in our Developing markets
segment for 2016, channel and
price mix, particularly in Poland,
FRQVWUDLQHGSURWDELOLW\{
Positive developments in package and
category mix, particularly in Hungary, helped
WRFRXQWHUWKHbQHJDWLYHLPSDFWRIKDYLQJ
more sales through the organised trade.
We experienced growth in nearly all
markets, driven by the sparkling and energy
categories. Unit case volumes for the
segment increased by 1.3% compared with
the prior year. To support sparkling category
JURZWKDQGRHUPRUHFKRLFHWRWKH
FRQVXPHUZHUHODXQFKHG)DQWDLQ3RODQG
with new formula and new packaging, and
Sprite Zero in Hungary, both of which did
very well.
Net sales revenue increased by 0.2% driven Volume vs. 2015
by volume growth and favourable category
DQGSDFNDJHPL[7KLVZDVSDUWLDOO\RVHWE\
unfavourable currency impact, arising mainly
from the Polish Zloty, as well as unfavourable
+1.3%
SULFHDQGFKDQQHOPL[2QDQ);QHXWUDO FX-neutral NSR per
basis, net sales revenue per unit case rose u.c. improvement
by 0.6% in 2016 compared to the prior year.
Improved volume with favourable brand
DQGSDFNPL[RQO\SDUWLDOO\RVHWWKH
adverse currency impact, as well as the
+0.6%
negative impact from price and channel Comparable EBIT
PL[&RPSDUDEOHRSHUDWLQJSURWPDUJLQIRU margin vs. 2015
the segment decreased by 20 basis points
WRZKLOHUHSRUWHGRSHUDWLQJSURW
increased by 6.3% to 92.9 million. +20bps

COC016_.indb 30 3/16/17 2:32 PM

 Coca-Cola HBC
2016 Integrated Annual Report 31

Strategic Report
Package initiative in Hungary

Revenue per case has been weak in this
segment. What can you do to improve
WKLVbWUHQG"
It is normal to have lower revenue per case in this segment in
comparison to the Established markets as these markets have lower
disposable income levels. Having said that, we are optimistic that we will
see value growth in this segment supported by the favourable GDP per
FDSLWDWUHQGVDQGbDEDWLQJGHDWLRQ7RSOLQHJURZWKLVDOVRVXSSRUWHG
by our selective pricing strategy, the trend towards single-serve
packages and fast-growing categories such as Energy.
Corporate Governance
In Hungary, we updated our pack and price architecture to
address declines in purchase frequency and market share
for the at-home occasion. By modifying the PET plastic
packages of our sparkling drinks from 1.0 to 1.25 litres, from
2.0 to 1.75 litres and from 2.5 to 2.25 litres, and by carefully
selecting price points, we increased household penetration
by more than 5% and gained 1% in market share. We also
succeeded in increasing transactions faster than volume.

Financial Statements
What are the retail trends in the
'HYHORSLQJbVHJPHQW":KDWDUH\RXU
SODQVbLQbWKHVKRUWWHUP"
5HWDLOLQHYLWDEO\IROORZVVKRSSHUWUHQGV:KDWbZHVHHIRUWKHIXWXUHLV
demand for greater convenience, accelerating growth in sales for the
GLVFRXQWHUFRQYHQLHQFHDQGHFRPPHUFHFKDQQHOV7KLVbSUHVHQWV
an opportunity for us to increase our product availability and capture
JURZWKLQbVPDOOHUEDVNHWVLQFUHDVLQJVDOHVWUDQVDFWLRQVDQGVDOHVRI
VLQJOHVHUYHSDFNDJHV,QbHFRPPHUFHDOWKRXJKJURZWKLVVLJQLFDQW
it is from a small base. However, we are actively working with our
customers to capture this growth, and we are very pleased to have won

Swiss Statutory Reporting

the National Sales Award for e-commerce in Poland. Sales at larger
stores will continue
u to
ue o grgrow,
grow although
ow,, althhou
ough gh w we believe
e believ this
e e th will
his will
UHSUHVHQWDbVPDOOHUVKDUHRIWKHPL[2XUbIRFXVLV
OHU
OH UVK
VKDU DUH H RI WKH PL[ L[ 2X
2XUb UbIR
IRFX
F VLV
on partnering with th o our
ur ccustomers
usto
us tome
mersrs tto improve
o im
impr
provovee
FRQVXPHUVVKRSSLQJH[SHULHQFH$bQXPEHU
SSLQ
SS LQJ
JH[H[SH SHULULHQ
HQFH
FH $b
$bQX
QXPEPEHU HU
of trends, including
ng g growing
rowi
ro wing ng uurbanisation,
rban
rb anisisat
atio
ion,
n
more people living g aalone
lone
lo ne aand nd iincreases
ncre
nc reas
aseses
in disposable income
ome m mean ean
ea n th
that
at oout-of-
ut-o
ut -of-f-
home consumption ion w will become
ililll be
becocome
me m moreore
or e an
and d
more important. We sseek eekk to ccapture
ee aptu
ap re tthis
ture hiss
hi
potential by ensuring
urin
ur ingg a 24 24/7 /7 aactivation
ctiv
ct ivat
atio
ion n of
the eating out and dd drinking
rink
rinkin ingg ou occasions,
outt oc
occacasision
ons, s,
Supplementary Information

leveraging our rich

ch be beve
beverage
vera rage
ge pportfolio
ortf
or tfol
olio
io
and building further
her rrelevancy
elev
el evan cy ffor
ancy or oourur
leading brands.

Keith Sanders
rs
Region Directorr

COC016_.indb 31 3/16/17 2:32 PM

 Coca-Cola HBC
32 2016 Integrated Annual Report

Emerging markets

Growing despite the

decline in Russia

Highlights for the year Emerging markets

2016 2015 % change volume breakdown
Volume (million unit cases) 1,067.8 1,055.2 1.2%
1HWVDOHVUHYHQXH{( million) 2,717.0 2,768.5 -1.9%
2SHUDWLQJSURW(%,7 ( million) 176.6 159.5 10.7%
&RPSDUDEOH(%,7{( million) 178.1 175.8 1.3%
Total taxes1( million) 106.4 108.9 -2.3%
Population{(million) 428.0 426.0 0.5%
GDP per capita(US$) 5,020 5,393 -6.9%
%RWWOLQJSODQWV{(number) 35 36 -2.8%
(PSOR\HHV{(number) 19,359 21,354 -9.3%
Russian Federation: 32%
:DWHUIRRWSULQW{(billion litres) 10.5 10.8 -2.8% Nigeria: 24%
&DUERQHPLVVLRQV{(tonnes) 383,604 400,647 -4.3% Romania: 16%
6DIHW\UDWH{(lost time accidents Serbia and
Montenegro: 9%
>1 day per 100 employees) 0.24 0.19 26.3% Ukraine: 8%
Bulgaria: 5%
1. Total taxes includes corporate income tax, withholding tax and deferred tax, as well as social security costs and
Belarus: 3%
RWKHUWD[HVWKDWDUHUHHFWHGDVRSHUDWLQJH[SHQVHVDVSHU,)56DFFRXQWV
Bosnia and
 3RSXODWLRQVRXUFH,QWHUQDWLRQDO0RQHWDU\)XQG:RUOG(FRQRPLF2XWORRN'DWDEDVH2FWREHU Herzegovina: 2%
Armenia: 1%
Percentage changes are calculated on precise numbers. Moldova: 1%

Our focus on customer service
and pricing strategies to maintain
DRUGDELOLW\DOORZHGXVWRLQFUHDVHVDOHV
YROXPHDQGFRPSDUDEOHRSHUDWLQJSURW
DQGPDUJLQVGHVSLWHVLJQLFDQWFXUUHQF\
headwinds, led by devaluations of both
the Russian rouble and the Nigerian naira.
Overall unit case volume increased in our
Emerging markets segment by 1.2% in
2016 compared with the prior year. This
was largely due to strong growth in Nigeria,
Romania and Serbia. In Nigeria, where
currency issues have led to substantial
LQDWLRQZHKDYHWDNHQDJUDGXDODSSURDFK
to ensure pricing is sustainable and our
products remain relevant for consumers. In
Romania, rebalancing our route-to-market
model and enhancing service has helped
lift sales volume. Meanwhile, our volumes
in Russia continued to be weak, despite
excellent growth of the Energy category
following the launch of Monster.
Net sales revenue declined by 1.9% in Volume vs. 2015
2016 compared with the prior year. This
ZDVODUJHO\GXHWRWKHGLFXOWFXUUHQF\
HQYLURQPHQWZKLFKPRUHWKDQRVHW
WKHEHQHWVRIDQLPSURYHGSULFLQJ
+1.2%
environment, increased volume and positive FX-neutral NSR per
SDFNDJHDQGFDWHJRU\PL[);QHXWUDO u.c. improvement
net sales revenue per case grew by 7.1%,
UHHFWLQJRXUVWUDWHJ\WRLPSOHPHQW
improved pricing in markets where we face
currency headwinds.
+7.1%
The Emerging markets segment delivered Comparable EBIT
a 1.3% increase in comparable operating margin vs. 2015
SURWIRUOHDGLQJWRDEDVLVSRLQW
improvement in the comparable operating
margin, which was 6.6%. Improved price and
FDWHJRU\PL[RVHWWKHDGYHUVHFXUUHQF\
+20bps
impact as well as higher input costs. On a
UHSRUWHGEDVLVRXURSHUDWLQJSURWIURP
this segment was 176.6 million in 2016,
an increase of 10.7% compared to the
prior year.

COC016_.indb 32 3/16/17 2:32 PM

 Coca-Cola HBC
2016 Integrated Annual Report 33

What is the latest on potential sugar tax
implementation in Russia? How would the tax
DHFW\RXUEXVLQHVVDQG\RXUDELOLW\WR
DFKLHYHQDQFLDOWDUJHWVLILPSRVHG"
The Russian government has halted the implementation of sugar
Strategic Report
Corporate Governance
Expanding and deepening route-to-market
in Romania
Changes in the retail landscape in Romania gave us an
opportunity to rebalance our route-to-market model in the
country. Through the new route-to-market solution, we
upgraded service to existing and new customers with the

tax on certain soft drinks in 2017 and has postponed the discussion
RIDSRWHQWLDOVXJDUWD[bWRDWWKHHDUOLHVW,IWKHWD[ZHUHWREH
LPSOHPHQWHGLWZRXOGKDYHDQHJDWLYHLPSDFWRQYROXPHVIRUWKHUVW
year. However, experience from other markets where similar taxes
have been implemented, like Mexico, shows that volumes recover in
year two. Our expectation, therefore, is that this will not have any long-
term impact on our sales volume and we see no reason to change our
2020 targets.
Financial Statements
highest potential (platinum and gold), selling an additional
1.6 million cases through better execution. We also
expanded distribution to an additional 10,000 outlets by
better leveraging our wholesale partners, increasing sales by
an additional 600,000 unit cases. We achieved all this while
improving our ability to execute in-store with excellence in
Romania, increasing execution performance as measured
by our internal Right Execution Daily (RED) system.

:LWKZRUVHQLQJPDFURFRQGLWLRQVZKDWDUH
your expectations
ctations for the short to medium
term in Nigeria?
geria?

Swiss Statutory Reporting

The macroeconomic omic conditions in Nigeria remain
FKDOOHQJLQJZLWKLQDWLRQUDWHVH[SHFWHGWR
LQDWLRQUDWHVH[SHFWHGWR
reach 17% in 2017 17 and the likelihood of a
further devaluationon of the naira. In line
with our strategy,, we implemented price
LQFUHDVHVLQbDQGZHZLOOFRQWLQXH
DQGZHZLOOFRQWLQXH
WRbDGMXVWSULFHVLQ'HVSLWHRXU
Q 'HVSLWHRXU
focused approach ch with magic price
points and changesges in package
VL]HVSULFHLQFUHDVHVDUHH[SHFWHGWR
DVHVDUHH[SHFWHGWR
impact sales volume
ume growth adversely.
Supplementary Information

We expect to see e volume growth from

2018 onwards, supported
upported by a return
to GDP growth in n the country. We
will also continue with infrastructure
optimisation initiatives
atives to take cost out
LQRUGHUWRSURWHFWSURWDELOLW\
FWSURWDELOLW\

Zoran Bogdanovic
anovic
Region Directorr

COC016_.indb 33 3/16/17 2:32 PM

 Coca-Cola HBC
34 2016 Integrated Annual Report

People

Unlocking our
talent potential

Our people are fundamental to our growth and our ability to create value.
Their skills and expertise are critical to creating and executing strategies,
DQGWKHLUVHUYLFHRULHQWDWLRQDQGFRPPLWPHQWWRH[FHOOHQFHbKHOSWR
deliver results, build relationships and secure our Companys reputation.
:HbVHHNWRRHUDZRUNSODFHZKHUHRXUSHRSOHDUHLQVSLUHGWRWDNH
advantage of opportunities to learn, grow and take charge of their careers.

Direct employment Key people in key positions Values index

31,083
2015: 33,311
87%2015: 79%
90%
2015: 88%

COC016_.indb 34 3/16/17 2:32 PM


:HRHURSSRUWXQLWLHVWROHDUQ
grow and win together
Key highlights
Our employee engagement score
increased to 88%, which, as the
FKDUWVKRZVbLVKLJKHUWKDQWKDWRI
other high-performing companies,
UHHFWLQJWKHFRPPLWPHQWRIRXU
people to our business and our
Company culture
We have improved individual
and team performance by
simplifying and strengthening
RXUbSHUIRUPDQFHIUDPHZRUN
:HPDGHVLJQLFDQWSURJUHVV
in building our revenue growth
management capabilities
We improved the talent pool working
in our key positions, aided by the
FRPPLWPHQWDQGHHFWLYHQHVVRI
RXUbOHDGHUVLQGHYHORSLQJSHRSOH
Three key areas
supporting growth
Maintain high employee engagement
by fostering a high-performance
mindset and strong Company culture
Strengthen capabilities with
special focus on revenue
growth management
Develop future leaders faster and
build a learning organisation to
maximise performance
COC016_.indb 35
By hiring the right people and supporting
them to grow, deliver on our strategy and
go the extra mile, we are able to connect
with communities, provide excellent
customer service and bring smiles to the
faces of consumers. Our leadership plays
an essential role in this, with every leader
accountable for attracting, developing,
retaining and engaging the right talent and
then enabling them to execute our strategy.
To ensure that we achieve our Company
objectives, our people strategy emphasises
workforce engagement and Company
FXOWXUHDQGWKHGHYHORSPHQWRIbWKH
capabilities, leadership and talent that are
necessary to pursue our strategic priorities.
Our people strategy has three key areas
of focus:
maintaining high employee engagement
and fostering a high-performance
Company culture: We believe our
Company will thrive if we all strive for
best-in-class performance. To achieve
this, we focus on winning together
through understanding and delivering on
our strategy, enjoying ownership of our
work, removing organisational barriers
to success and living our Company
values, acting with integrity and doing
what is right, not just what is easy;
strengthening capabilities: We are
focused more than ever on skills and
capabilities that will make our workforce
capable of winning in the marketplace
WRGD\DQGLQWKHIXWXUH6SHFLFDOO\WKLV
means building capabilities in the crucial
areas of revenue growth management,
route-to-market, front-line execution
and inspirational leadership; and
developing talents: We believe that our
ability to develop leaders internally is
an important competitive advantage.
We therefore seek to build a strong
bench of inspirational leaders across all
leadership levels to ensure continuity and
long-term growth for our business. We
will continue creating opportunities for
faster development, building the correct
knowledge, skills and experience, whilst
embedding our values.
Coca-Cola HBC
2016 Integrated Annual Report 35
Strategic Report
Corporate Governance
Maintaining high employee
engagement
7KHH[WUDHRUWVPDGHE\RXUSHRSOHDUH
important to our Company performance.
Because we know how valuable our
employees contributions are, we invest
in and closely monitor engagement levels.
We conduct an employee engagement
survey annually, and we partner with
Willis Towers Watson to benchmark our
performance against other companies
Financial Statements
in the Coca-Cola System and other high-
performing companies.
Employee engagement:
outperforming peer companies (%)
90 88
87
86
CCHBC
85
CCHBC
High-performing norm 84
84 82
Coca-Cola Bottlers
Coca-Cola System
81 81
CCHBC
FTSE 100
FMCG norm
78
Swiss Statutory Reporting
72
66
60
14 15 16 16 16 16 16 16
'DWDIRU)76(FRPSDQLHVDQGbKLJKSHUIRUPLQJ
companies represents those companies participating
in Willis Towers Watson benchmarking. This does not
include all FTSE 100 companies.
Supplementary Information
Our Sustainable Engagement Index score
increased to 88% in 2016 from 87% in the
prior year, with the participation of 96% of
our people.
Our engagement results for 2016 were
higher than those of other companies in the
Willis Towers Watson benchmarking pool of
high-performing companies. They are also
7% higher than the average results for FTSE
100 companies participating in this pool and
higher than the results of other companies
in the Coca-Cola System.
3/16/17 2:32 PM
 Coca-Cola HBC
36 2016 Integrated Annual Report
People continued
Fostering a high-
performance culture
Everything in our Company starts with our
six core values: authenticity, excellence,
learning, caring for our people, performing
as one and winning with customers.
As is the case with employee engagement,
we closely monitor our progress in
embedding and living our values. To further
embed our values, which are an integral part
RIRXUFRUSRUDWHFXOWXUHZHKDYHGHQHG
important behaviours that our people are
expected to demonstrate daily as they go
about their work, such as treating others
ZLWKUHVSHFWb7KHVHEHKDYLRXUVbUHSUHVHQW
the essential building blocks of our
Company culture and high-performance
IUDPHZRUN:HKDYHOLNHZLVHLGHQWLHG
behaviours we aim to eliminate. Our
RQJRLQJHRUWVKDYHLPSURYHGRXUSHRSOHV
awareness of and commitment to our
values. We measure this using our Values
index which was at 90% for 2016,
a 2% increase from 2015.
,QZHUHIUHVKHGDQGVLPSOLHGRXU
performance framework and integrated
all components with the aim of increasing
individual, team and Company performance,
while strengthening Company culture. The
revised framework links team performance
and individual results, actions and skills, and
aligns to our six core values.
Our team performance management
system allows us to bridge strategy and
its execution by aligning priorities across
IXQFWLRQVDQGbWHDPVDQGDSSO\LQJDQ
COC016_.indb 36
iterative plan, act and review cycle to
improve output continuously. In 2016,
we standardised our approach across
our territory.
To ensure that our people balance short-
and long-term objectives at individual
level, in addition to assessing performance
DJDLQVWQDQFLDOREMHFWLYHVZHDOVRVHW
objectives and measure achievement
for innovation, fostering of partnerships,
people leadership, managing resources, and
compliance with policies and procedures like
our Code of Business Conduct. The
VXFFHVVIXOUROORXWRIRXUVLPSOLHG
performance standards for each leadership
level within the organisation creates a line of
sight between our values and our results.
Strengthening capabilities
and building a learning
organisation
:HKDYHLGHQWLHGDQGSULRULWLVHGWKH
organisational capabilities that are
important across our Company and
required to execute our strategy and drive
growth in each of our markets. We are
building prioritised capabilities such as
revenue growth management and route-
to-market by improving our processes,
structures and measurement system
as well as the skills of our people.
:HKDYHPDGHSDUWLFXODUO\VWURQJbSURJUHVV
during 2016 in acquiring and building
revenue growth management capabilities.
Driven by the needs of our business
VWUDWHJ\ZHKDYHUHGHQHGRXUOHDUQLQJ
DUFKLWHFWXUH:HKDYHLGHQWLHGZKHQ
learning needs to happen to be the
most impactful and what we need to
develop, focusing on prioritised skills
Talent pipeline improved
Key people in key positions (KPo)
KPo succession rate
KPo bench strength
Turnover of key people
Total turnover rate
Retention of all new hires after 12 months
Management trainees
Participants in Fast Forward programmes
Promotion rate for Fast Forward programme participants
Total number of employees in leadership acceleration centres
% of workforce covered during annual people review
DQGSHUIRUPDQFHGLHUHQWLDWRUVWKDW
can accelerate the performance of all
our people. Our new learning support
application will enable us to make knowledge
even more available to all our people,
democratising leaming, accelerating
GHYHORSPHQWDQGKHOSLQJWKHPIXOO
their potential.
Developing talents
Our leaders are becoming better talent
champions, increasing their commitment
DQGHHFWLYHQHVVDLGHGE\WKHVLPSOLHG
performance standards introduced in
2016 and reallocation of resources within
RXUKXPDQUHVRXUFHVIXQFWLRQb:HKDYH
further professionalised our approach by
establishing new centres of expertise for
talent acquisition and development, and
leadership development and capabilities.
These centres are responsible for
recruitment and development across the
business, going beyond policy creation.
This design ensures that we support our
leaders in developing future leaders in
HYHU\PDUNHWHFLHQWO\DQGHHFWLYHO\
Not all positions have the same impact
on the Companys performance. We have
VHJPHQWHGRXUZRUNIRUFHDQGLGHQWLHG
the key positions across all levels that
have a disproportionately high impact
on the Companys performance. Career
progression in our Company depends on
performance against standards, potential
and alignment with core values.
We regularly assess the performance
and potential of leaders and people in key
positions. As of the end of 2016, 87% of our
key positions are occupied by key people,
compared with 79% at the end of 2015.
2016 2015
87% 79%
0.67 0.70
50% 45%
5% 4%
12% 12%
82% 69%
231 254
902 770
71% 55%
3,525 2,084
46% 46%
3/16/17 2:32 PM

Leadership acceleration centres have been
established to help our people understand
their strengths and the areas of opportunity
for their development in their current and
future roles. Participation in these has been
scaled up in the past few years, reaching
3,525 employees in 2016.
To accelerate the development of our future
OHDGHUVZHRHUH[SHULHQWLDOOHDUQLQJbWR
help build new skills required for their next
role through our Fast Forward Programmes,
which reached 902 employees during
the year.
Championing inclusion,
GLYHUVLW\DQGbKXPDQULJKWV
We believe that fostering a workforce
WKDWUHHFWVWKHGLYHUVLW\RIRXUPDUNHWV
is essential to remaining the strategic
partner of choice for all of our customers.
2XUEXVLQHVVEHQHWVJUHDWO\IURPWKH
diverse range of people who work for us,
serving a broad geographic footprint and
a wide spectrum of communities. This is
why we actively seek to attract and retain
employees from a range of backgrounds,
VNLOOVDQGH[SHULHQFHVb
We know that to maximise everyones
contribution, we need to ensure that every
employee feels respected and heard. This
is why respect for individuals is at the core
of our values, and why we foster behaviours
that create an inclusive culture. These
behaviours are enshrined in our formal
Inclusion and Diversity Policy, our Code of
Business Conduct and our Human Rights
Policy. To increase understanding and
engagement, we encourage cross-cultural
and cross-country exchanges within our
talent pool.
At the end of 2016, 33% of leadership roles
in our Company were held by women, which
was consistent with 2015. We continue to
support the diversity of our talent pipeline
with a policy that ensures the recruitment
of a balanced number of male and female
management trainees. In keeping with this
approach, 54% of the 231 management
trainees we hired in 2016 were women.
,QDQH[DPSOHRIRXUHRUWVWRIRVWHUWKH
success of women in management, our
business unit covering Northern Ireland
and the Republic of Ireland supports high-
potential women to develop their business
NQRZOHGJHFRQGHQFHDQGOHDGHUVKLSVNLOOV
The programme, called Elevating Women in
Leadership, provides personal development
planning and coaching support to aspiring
COC016_.indb 37
53% improvement
RQbHHWDFFLGHQWVRYHU
WKHbODVWIRXU\HDUV
10
9 accidents in 2016.
8
7
6 Company. In 2016, in co-operation with The
5 Coca-Cola Company, we launched a new
4 behaviour-based safety (BBS) programme
3
2
1 Ireland during 2017, and will subsequently
0 be introduced across the Company by the
2012 2013 2014 2015 2016
Accidents per million kilometres travelled.
female leaders, and has been well received
by participants. We aim to introduce similar
programmes in 2017 across our territory.
Respect for human rights is fundamental
to our Companys sustainability and to
the communities in which we operate.
Our Human Rights Policy is guided by
international human rights principles and
covers critical issues including diversity,
FROOHFWLYHEDUJDLQLQJDQGZRUNSODFHVHFXULW\b
In 2016, we made our Human Rights Policy
available in the 23 languages used in our
28 countries and distributed it to promote
awareness and understanding of our
commitment to ensure people are treated
with dignity and respect.
Well-being and safety
We believe that having healthy, happy,
engaged people supports our business.
2XUbZHOOEHLQJIUDPHZRUNKDVD
range of initiatives to help support our
employees physical, emotional, social and
QDQFLDOKHDOWK7RVXSSRUWRXUSHRSOH
LQWKHLUHRUWVWROLYHKHDOWK\DQGDFWLYH
lives, for example, we subsidise gym
PHPEHUVKLSVRHUPHGLFDOFKHFNXSVDQG
encourage participation in Company and
community sporting events and healthy
living programmes.
While we are focused on improving the
overall well-being of our people, we know
this begins with providing a safe workplace.
During 2016, we achieved a 3% reduction
in employee accidents, resulting in
DQbLPSURYHPHQWIRUWKHVHYHQWK
consecutive year.
Coca-Cola HBC
2016 Integrated Annual Report 37
Strategic Report
While we continue to improve our focus on
health and safety and workplace conditions,
we regret that one employee (in the Czech
Republic) and three contractors lost their
OLYHVLQIDWDOZRUNSODFHDQGURDGWUDF
After analysing the causes of these
Corporate Governance
accidents, we concluded that more could be
done to foster health and safety across our
to create a truly proactive safety culture.
This new programme will be piloted in
locations in Italy, Hungary and Northern
end of 2018.
Financial Statements
We continue to strengthen our vehicle
safety programmes to further improve
HHWVDIHW\)URPWRPRUHWKDQ
15,000 employees who drive on Company
business received training through an
e-learning platform. We have also continued
installing collision avoidance technology
LQHHWYHKLFOHVDQGPRUHWKDQKDOIRIWKH
&RPSDQ\VOLJKWHHWYHKLFOHVDUHQRZ
equipped with collision driver warning
technology to avoid collisions.
Swiss Statutory Reporting
$VDUHVXOWRIWKHVHHRUWVWKHQXPEHU
of accidents per million kilometres
travelled fell 15% in 2016 compared to
2015. This was our fourth consecutive
year of improvement, resulting in an
accumulated reduction of 53%.
Number of lost time accidents
(LTA>1 days)
138
Supplementary Information
3% reduction vs. 2015
Fleet accidents per million
kilometres travelled
4.22
15% reduction vs. 2015
Absenteeism days per
IXOOWLPHbHPSOR\HH
1.71
57% reduction vs. 2015
3/16/17 2:32 PM
 Coca-Cola HBC
38 2016 Integrated Annual Report

Community trust

Trusted by
our communities

We build trust by operating a responsible, sustainable business,

DQGbZHbVHHNWRFRQWLQXDOO\LPSURYHE\VHWWLQJDPELWLRXVJRDOV
:RUNLQJbLQbSDUWQHUVKLSZLWKFRPPXQLWLHVJRYHUQPHQWVDQG
QRQJRYHUQPHQWDORUJDQLVDWLRQVZHDOVRKHOSFUHDWHZLQZLQ
VROXWLRQVbWRVRFLHWDOFKDOOHQJHV

,QYHVWHGLQFRPPXQLW\ (PSOR\HHYROXQWHHULQJ ,QYHVWPHQWLQ\RXWK

SURJUDPPHVDQGLQLWLDWLYHV GXULQJbZRUNWLPH GHYHORSPHQWb

P K P

COC016_.indb 38 3/16/17 2:33 PM


Operating a responsible
EXVLQHVVFUHDWLQJVKDUHG
YDOXHIRURXUFRPPXQLWLHV
.H\KLJKOLJKWV
0RUHWKDQNLORPHWUHVRIbULYHU
banks and beaches cleaned and
bWRQQHVRIbZDVWHFROOHFWHG
More than 152,000 trees planted
LQbPRUHWKDQVTXDUHPHWUHV
of land in need of reforestation
3DUWQHULQJZLWK1*2V
LQbFRXQWULHV
Material issues
Community investment
and engagement
Corporate governance, business
ethics and anti-corruption
Direct and indirect economic impacts
Health and nutrition
Responsible marketing
Product quality and integrity
Carbon and energy
Packaging recycling
DQGbZDVWHPDQDJHPHQW
Sustainable sourcing
Water stewardship
Employee well-being
and engagement
Human rights and diversity
2XUEXVLQHVVPDNHVDSRVLWLYHGLHUHQFH
in the communities where we operate. We
create value and foster trust by managing
our business responsibly and sustainably,
and by helping to solve societal challenges.
In 2016, we set new long-term sustainability
targets, committing to do even more.
$VD&RPSDQ\ZHLQYHVWVLJQLFDQW
creativity, innovation and resources in
FRPPXQLW\SURJUDPPHV%\DGGUHVVLQJ
challenges where we have a strategic
interest or special expertise, we increase
our chance of successfully creating shared
YDOXHDQGWUXO\PDNLQJDGLHUHQFH:H
strive to partner with our stakeholders and
communities, leveraging our combined
expertise, and inspire and engage our
employees and business partners to
support our community investment
DQGbYROXQWHHULQJSURJUDPPHV
%HFDXVHZHZDQWWRHQVXUHWKDWRXU
HRUWVDUHPHDQLQJIXOZHVHHNWRHQKDQFH
WKHHFLHQF\VFDOHDQGLPSDFWRIRXU
community programmes through strategic
partnerships with civil and governmental
organisations, and through setting targets
and regularly assessing output and impacts,
where possible. During 2016, we partnered
ZLWK1*2VLQFRXQWULHVLQFOXGLQJ
WKH,QWHUQDWLRQDO)HGHUDWLRQRIWKH5HG
Cross, the International Commission for the
Preservation of the Danube River, the World
:LOGOLIH)XQGWKH*OREDO:DWHU3DUWQHUVKLS
DQGPDQ\ORFDO1*2V
7KURXJKVWUDWHJLFLQYHVWPHQWVLQRXU
FRPPXQLWLHVbZHFRQWULEXWHWRJOREDOHRUWV
WRDFKLHYHWKH6XVWDLQDEOH'HYHORSPHQW
Coca-Cola HBC
2016 Integrated Annual Report 
Strategic Report
Corporate Governance
2XUVWUDWHJLFDSSURDFK
We have a long history of bringing people
together and working towards a shared
vision through our support of community
programmes. Over the years, our
community initiatives have evolved from
philanthropic contributions to value-adding,
long-term programmes linked to the
Financial Statements
business strategy to create shared value
and measurable, positive impact.
We work to support our communities by
providing funds for programmes, creating
lasting partnerships and encouraging
employee volunteering. Our community
investment focuses on three key strategic
DUHDVZKLFKZHKDYHLGHQWLHGEDVHGRQ
existing societal and environmental needs
LQbWKHFRXQWULHVZKHUHZHZRUN7KHVHDUH
1. Community well-being
Swiss Statutory Reporting
2. Environmental and water stewardship
3. Youth development
When the need arises, we are also active
LQHPHUJHQF\UHOLHIHRUWVLQDOORIRXU
PDUNHWVVWULYLQJWREHDPRQJWKHUVW
to provide relief directly or through
stakeholder partnerships.
In September 2016, we set seven new
ORQJWHUPWDUJHWVLQFOXGLQJDbFRPPLWPHQW
WRLQYHVWRIRXUDQQXDOSUHWD[SURWLQ
FRPPXQLWLHVE\HQGbZLWKLQWKHWKUHH
Supplementary Information
strategic areas described above.
'XULQJWKH\HDUZHLQYHVWHGbPLOOLRQLQ
our communities, equivalent to 1.6% of our
SUHWD[SURWb7KLVLVbKLJKHUWKDQWKH/%*V
IRUPHUO\NQRZQDV/RQGRQ%HQFKPDUNLQJ
*URXSZZZOEJRQOLQHQHWDYHUDJHRI
*RDOV6'*VDGRSWHGE\WKH8QLWHG
1.0%, and puts us in a good position to
1DWLRQV:HUHFRJQLVHWKDWPDQ\RIWKH
achieve the target of 2% of annual pre-tax
JRDOVDUHLQWHUFRQQHFWHG7KHDUHDVZKHUH
SURWE\b)RUPRUHLQIRUPDWLRQDERXW
we make the most substantial contributions
our 2020 sustainability commitments,
WKURXJKRXUFRPPXQLW\SURJUDPPHVDUH
please see page 22 and our website.
While we have a long history of facilitating
employee volunteering by encouraging
employees to spend work time contributing
to community projects and programmes,

COC016_.indb 39 3/16/17 2:33 PM

 Coca-Cola HBC
40 2016 Integrated Annual Report
Community trust continued
in 2016 we introduced a new 2020 target
to double the number of employees who
volunteer, aiming to reach 10% of all of
RXUSHRSOHE\,QbRIRXU
employees participated in Coca-Cola
+%&bLQLWLDWLYHVGXULQJZRUNWLPHGHGLFDWLQJ
KRXUV
On top of contributing to locally relevant
community programmes, we believe that
employee volunteering can also provide
experiential learning and development
opportunities for our employees as well
DVKDYHDSRVLWLYHHHFWRQHPSOR\HH
engagement and well-being.
&RPPXQLW\ZHOOEHLQJ
We continue to support initiatives across
our 28 countries to improve community
well-being. We work with our communities
in every country to safeguard and enhance
their well-being and quality of life, supporting
events and social gatherings.
Some of the initiatives we have undertaken
to encourage physical activity and support
the desire for more sustainable and liveable
installation of free active zones, walking
trails and paths, and implementation or
expansion of bike share programmes, as
ZHOObDVVXSSRUWRIPRYHPHQWVRQVSRUWV
IRUDOO)RUPRUHLQIRUPDWLRQSOHDVHVHH
H[DPSOHIURP,UHODQGRQSDJH
(QYLURQPHQWDODQGZDWHU
VWHZDUGVKLS
Water is the most important ingredient in
our products, and we believe everyone has
a right to clean, safe water and sanitation
wherever they live. Our 2020 sustainability
targets therefore include improving our
water intensity ratio by 30% compared
to 2010.
7RVDIHJXDUGFOHDQZDWHUVXSSOLHVDQG
WKHUHE\FRQWULEXWHWR6'*RXUZDWHU
stewardship programmes involve detailed
source vulnerability assessments and
source water protection plans, which are
performed for all of our manufacturing sites.
Our target is to certify all of our plants
in accordance with either the European
Water Stewardship or the Alliance for
)URPWKHSURWHFWLRQRIZDWHUVRXUFHV
through wetlands, biodiversity and
ecological processes at the watersheds,
to waste water treatment and sanitation
after our water use, all activities are done
engaging local water users, authorities and
other key stakeholders in the community.
Our water stewardship strategy drives our
partnerships with environmental ministries
as well as intergovernmental and civil
organisations to preserve and protect
important ecosystems, such as watersheds
and wetlands in key regions and river basins,
such as the Danube, the Volga, and the Sava
among others.
2XUORQJWHUPPXOWLFRXQWU\*UHHQ
Danube initiative increases awareness of the
wetland habitat, including the preservation
RIXQLTXHRUDDQGIDXQDWRWKHFRPPXQLW\
and the environment. In 2016, awareness-
raising events to encourage citizens to
protect the Danube river were held in
$XVWULD%RVQLDDQG+HU]HJRYLQD%XOJDULD
DQG8NUDLQH7KHLQLWLDWLYHVVLJQDWXUHHYHQW
held in partnership with the International
Commission for the Protection of the
FLWLHVDQGFRPPXQLWLHV6'*LQFOXGH
7\SHRIFRQWULEXWLRQ
Charitable contribution: 11%
Community investment: 81%
Commercial initiative: 8%
Contributions
Cash contributions: 82%
In-kind contributions: 16%
Time contributions: 2%
COC016_.indb 40
:DWHU6WHZDUGVKLSVWDQGDUGE\%\
WKHHQGRIZHKDGDFKLHYHG*ROG
(XURSHDQ:DWHU6WHZDUGVKLS&HUWLFDWLRQV
for all of our mineral water sites in Austria,
%RVQLDDQG+HU]HJRYLQD%XOJDULD&URDWLD
&\SUXV&]HFK5HSXEOLF*UHHFH+XQJDU\
Italy, Poland, Romania, Serbia, Switzerland
DQG8NUDLQH,QPRVWRIWKHVHFRXQWULHV
WKHFHUWLFDWLRQRIRXUSURGXFWLRQIDFLOLWLHV
LVWKHUVWRILWVNLQGZKLFKZHKRSHVHWV
an example and raises the bar for the
whole industry.
'DQXEH5LYHU,&3'5LVWKHZLGHVSUHDG
celebration of Danube Day, in collaboration
with citizens, governments, civil
organisations and businesses.
7KHJOREDOFRPPLWPHQWRIWKH&RFD&ROD
System to replenish 100% of the water
XVHGLQQDOEHYHUDJHSURGXFWVLQFOXGHVD
number of water initiatives in our markets.
7KURXJKWKHHRUWVRI/HWV6DYH<HOQ\D
%RJ7RJHWKHUDQLQLWLDWLYHRIRXU%HODUXVLDQ
operations, and other projects conducted
LQbSDUWQHUVKLSZLWKWKH:RUOG:LOGOLIH
)XQGbDQGWKH*OREDO:DWHU3DUWQHUVKLS
Mediterranean, we replenished 182% of the
ZDWHUZHXVHGLQRXUQDOEHYHUDJHVLQ
Restoring Europes largest bog
,QWKH<HOQ\DERJLQ%HODUXVSHDWUHV
caused by too much drainage were
impacting migrating bird populations,
FUDQEHUU\FURSVDQGWKHUHJLRQVDELOLW\WR
absorb CO2,QZHEHJDQVXSSRUWLQJ
UHVWRUDWLRQQDQFLDOO\DQGZLWKHPSOR\HH
volunteers who helped build dams and
close drainage. More than 50 dams have
been built, enabling water levels to rise by
a metre and 23,000 tonnes of CO2 to be
absorbed annually.
3/16/17 2:33 PM
 Coca-Cola HBC
2016 Integrated Annual Report 41

Strategic Report
While we see water as a material issue 6XSSRUWLQJUHFHQWVFKRRO
for both our Company and society, we JUDGXDWHVLQb,WDO\
also engage in other environmental
7RDGGUHVVKLJKOHYHOVRI\RXWK
protection initiatives of various kinds in our
XQHPSOR\PHQWLQ,WDO\ZHYHLQWURGXFHG
communities. With the dedicated support
7DVWH<RXU7DOHQWDSURJUDPPHSURYLGLQJ
RIbHPSOR\HHYROXQWHHUVZHKDYHFROOHFWHG
recent school graduates with useful
bWRQQHVRIZDVWHDWULYHUDQGbVHD
ZRUNSODFHVNLOOV7KHZRUNVKRSVKHOS\RXQJ
shores and cleaned more than 1,164

Corporate Governance
adults better understand their key strengths
NLORPHWUHVRIULYHUEDQNVDQGEHDFKHVbLQ
and prepare for future careers. In 2016, 180
2016. During the same time period, we
young Italians received training, nearly half of
DOVRbFRQWULEXWHGWRUHIRUHVWDWLRQE\
whom were women.
planting over 152,000 trees in more than
VTXDUHPHWUHVRIODQG
We are a substantial employer, with more 7KHSURJUDPPHWDUJHWVWKRVHZKR
<RXWKGHYHORSPHQW than 31,000 direct employees, and are also are not in education, employment or
part of a large supply chain with many large training and seeks to address persistent
We passionately believe in the potential of
and small employers, and customers which underemployment issues in some of our
young people and we know that they are the
employ young people. PDUNHWV:HDLPWRVXSSRUW\RXQJSHRSOHV
future leaders and change-makers of the
)RUPDQ\\HDUVZHKDYHVXSSRUWHGD needs in their transition from school to
communities that we live in.
meaningful employment by helping them

7KHELJJHVWFKDOOHQJH\RXQJSHRSOHLQRXU
communities face is unemployment. Across
the countries where we operate, about a
quarter of young people are unemployed.
<RXWKXQHPSOR\PHQWUDWHVLQRXUPDUNHWV
range from about 3% in Switzerland in 2016
WRPRUHWKDQLQ%RVQLD+HU]HJRYLQD
In 15 out of the 28 countries we do business
in, youth unemployment is 15% or more.
7KLVLVDNH\LVVXHIRURXUEXVLQHVVEHFDXVH
FORVHWRRIWKHPLOOLRQFRQVXPHUV
UDQJHRIHGXFDWLRQDOSURJUDPPHVRHUHG
internships and management trainee
programmes, and provided skills training
and access to funding for underprivileged
individuals in our countries of operation.
<RXWK(PSRZHUHGLVRXUQHZFHQWUDOO\OHG
strategic initiative to help support 18-to-
30-year-olds achieve their career ambitions
and live a fuller life.
Financial Statements
build fundamental life and business skills and
long-lasting professional and peer networks.
7KHUROORXWRIRXU<RXWK(PSRZHUHG
SURJUDPPHEHJLQVLQWKURXJKD
combination of online engagement,
e-learning and in-class sessions in a number
of our countries, which will be implemented
DFURVVDOORIRXUPDUNHWVIROORZLQJQH
tuning based on initial learnings.

Swiss Statutory Reporting

we serve are young people between 18
and 30 years old. We also employ many
young people, and a challenge we face as
a business is to ensure our ability to attract Certify all of our
plants in European
talent to support business growth over time. Water Stewardship
or Alliance for Water
Stewardship Recover for
standard recycling an
average of 40% of
Reduce carbon total packaging
emissions we introduce to
intensity in the our markets
value chain by
25%

Reduce direct
+RZ&RPPXQLW\
Supplementary Information

carbon emissions
intensity by 50%
7UXVWOLQNVWRRXU
2020 sustainability
commitments

Supporting education and

HQWUHSUHQHXUVKLSLQb%XOJDULD Double the
number of
employees
,Q%XOJDULDSURIHVVLRQDOPHQWRUVIURP taking part in
volunteering
Invest 2% of our
annual pre-tax
SURWLQ
&RFD&ROD+%&ZRUNHGZLWKXQLYHUVLW\ initiatives during
work time to communities
10% of our
students to help build entrepreneurial skills, people
establishing 50 new workplaces through
WKHVWXGHQWVVWDUWXSV:HDOVRKHOSWR
prepare young people to serve as teachers,
WUDLQLQJLQ7KH\UHDFKHG
%XOJDULDQVFKRROFKLOGUHQDQGKHOSHG
improve performance. i Read more about our 2020 sustainability commitments on page 5

COC016_.indb 41 3/16/17 2:33 PM

 Coca-Cola HBC
42 2016 Integrated Annual Report

Consumer relevance

Remaining
relevant for
our consumers

7RPHHWHYROYLQJFRQVXPHUQHHGVDQGSUHIHUHQFHVZHRHUDGLYHUVH
product portfolio and we have an exciting pipeline of new products
DQGbSDFNDJLQJRSWLRQV%\FRQVWDQWO\LPSURYLQJWKHHFLHQF\RIRXU
distribution, we also help to ensure that consumers are delighted
E\bSURGXFWTXDOLW\

(QHUJ\FDWHJRU\ Single-serve mix Reduction in complaints

growth improvement YV

21% +140bps 8%

COC016_.indb 42 3/16/17 2:33 PM


Focus on building
consumption occasions
.H\KLJKOLJKWV
6SDUNOLQJEHYHUDJHVJUHZE\
LQZLWKLQWKHFDWHJRU\ZH
VDZLQFUHDVHLQ7UDGHPDUN
&RFD&RODDQG&RNH=HURXSE\
7KHQHZ&RFD&ROD7DVWHWKH
To excite and satisfy our consumers, we
RHUDGLYHUVHSRUWIROLRWKDWPHHWVHYROYLQJ
SUHIHUHQFHV7RHQVXUHWKDWZHFRQWLQXHWR
PHHWFRQVXPHUQHHGVDVSUHIHUHQFHVDQG
OLIHVW\OHVHYROYHZHIRFXVRQRHULQJWKH
ULJKWSURGXFWVLQWKHULJKWSDFNVWKURXJKWKH
ULJKWFKDQQHOVIRUWKHULJKWRFFDVLRQ:HFDOO
Coca-Cola HBC
2016 Integrated Annual Report 43
Strategic Report
Corporate Governance
$WKRPHUHPDLQVDQLPSRUWDQWRFFDVLRQ
EXWKDOIRIDOOQRQDOFRKROLFGULQNVDUH
FRQVXPHGGXULQJVRFLDOLVLQJZLWKIULHQGV
&RQVXPSWLRQRIQRQDOFRKROLFGULQNV
GXULQJVRFLDOLVLQJRXWVLGHRIWKHKRPH
LVH[SHFWHGWRJURZE\WRLQWKH
QH[WWR\HDUV6DOHVLQWKHKRWHO
)HHOLQJbFDPSDLJQKDVKHOSHGJURZ
WKHbQXPEHURIFRQVXPHUVGULQNLQJ
RXUbSURGXFWVE\ESVYHUVXV
ODVW\HDU
2XU(QHUJ\SRUWIROLRJUHZE\
PRUHWKDQGRXEOHWKHLQGXVWU\
FDWHJRU\JURZWK
Material issues
'LUHFWDQGLQGLUHFWHFRQRPLFLPSDFWV
+HDOWKDQGQXWULWLRQ
5HVSRQVLEOHPDUNHWLQJ
3URGXFWTXDOLW\DQGLQWHJULW\
3DFNDJLQJUHF\FOLQJDQG
ZDVWHPDQDJHPHQW
:DWHUVWHZDUGVKLS
(PSOR\HHZHOOEHLQJ
DQGHQJDJHPHQW
COC016_.indb 43
WKLVRFFDVLRQEUDQGSDFNSULFHDQGFKDQQHO UHVWDXUDQWDQGFDI+R5H&DFKDQQHO
DUFKLWHFWXUH7RXQGHUVWDQGSHUIRUPDQFH DUHbWKHUHIRUHVLJQLFDQW:LWKRXUVKDUH
RIWKHSRUWIROLRLQORFDOPDUNHWVLWXDWLRQV RIbVDOHVLQWKHFKDQQHOFXUUHQWO\DWRQO\
ZHORRNDWUHYHQXHLQ(XURVRQDQ);QHXWUDO bRIDOOEHYHUDJHFRQVXPSWLRQZHVHH
Financial Statements
EDVLV,QZHFRQWLQXHGWRH[SHULHQFH DQRSSRUWXQLW\WREHWWHUVHUYHFRQVXPHUV
JURZWKLQDOOPDMRUFDWHJRULHVZLWKWKH DQGGULYHYDOXHWKURXJKVLQJOHVHUYH
H[FHSWLRQRIUHDG\WRGULQNWHD SDFNV:HDUHDEOHWRVHOORXUSURGXFWV
LQ+R5H&DDWDSSUR[LPDWHO\GRXEOHRXU
Meeting consumer needs DYHUDJHQHWVDOHVUHYHQXHSHUFDVH
for all occasions $FURVVRXUPDUNHWVZHDUHFDSLWDOLVLQJ
:HRHUFRQVXPHUVPRUHRIWKHSURGXFWV RQWKLVRSSRUWXQLW\E\OHYHUDJLQJRXUIXOO
WKH\ZDQWLQFOXGLQJORZDQGQRVXJDU SURGXFWSRUWIROLRDQGGHYHORSLQJD
RSWLRQVDFURVVFDWHJRULHVDQGLQ DSSURDFKWRRFFDVLRQV
PRUHSDFNDJHV
:LWKWKHULJKWSURGXFWVDYDLODEOHZH
Swiss Statutory Reporting
GULYHGHPDQGE\PDNLQJRXUSRUWIROLR
DPHDQLQJIXOSDUWRIIDPLO\PHDOVDQG
VRFLDOLVLQJRFFDVLRQV7RDFKLHYHWKLV
ZHXVHDUDQJHRIDFWLYLWLHVLQFOXGLQJ
FRPELQDWLRQRHUVFUHGLEOHLQXHQFHUV
DQGGRRUWRGRRUVDPSOLQJ,Q6HUELDIRU
H[DPSOHZHLQWURGXFHGQHZKLJKPDUJLQ
DQGOLWUHSDFNVIRURXUVSDUNOLQJ
EUDQGVDQGOLQNHGWKHVHWRIDPLO\PHDOV
7KHVHHRUWVGURYHJURZWKLQVSDUNOLQJ
EHYHUDJHWUDQVDFWLRQVE\PRUHWKDQ
FRPSDUHGWRWKHSULRU\HDU7REHUHOHYDQW
Supplementary Information
WRFRQVXPHUVRXUVWUDWHJ\IRUEUDQGVPXVW
EHEURXJKWWROLIHLQUHWDLORXWOHWV:HZRUNHG
DFURVVFKDQQHOVRQSURPRWLRQVOLQNHGWRWKH
DWKRPHPHDORFFDVLRQ)RUH[DPSOHRXU
EDUEHTXHDQGWKHPDWFKSURPRWLRQOLQNHG
IRRWEDOOWRPHDOVDWKRPHZLWK&RNH,Q
6ZLW]HUODQGZHZRUNHGZLWKDPDMRUUHWDLOHU
WRLQYROYHVSHFLFLQWHUQDWLRQDOIRRWEDOO
SOD\HUVLQSURPRWLRQVIRUPHDOVZLWK&RNH
$FURVV&HQWUDO(XURSHDQPDUNHWVZHUDQ
DSURPRWLRQZLWKDPDMRUUHWDLOHUGXULQJWKH
8()$(XURSHDQ&XSLQWKHVXPPHU
3/16/17 2:33 PM
 Coca-Cola HBC
44 2016 Integrated Annual Report
&RQVXPHUUHOHYDQFHFRQWLQXHG
:HDUHHVWDEOLVKLQJPRUHSRLQWVRI
UHIHUHQFHIRURXUSURGXFWVKLJKOLJKWLQJWKH
XVHRIVSDUNOLQJEHYHUDJHVDVPL[HUVZLWK
VSLULWVRUDVDGHVLUDEOHQRQDOFRKROLFFKRLFH
IRUGULYHUV:HDUHDOVRSURPRWLQJWKH
GHOLJKWIXODSSHDORIDSHUIHFWVHUYH&RNH
LQbDEUDQGHGFRQWRXUJODVV
(QHUJ\LVDVIDVWJURZLQJFDWHJRU\DQG
FRPPDQGVKLJKUHYHQXHSHUOLWUH:LWKD
VWURQJIRFXVRQH[HFXWLRQFRXSOHGZLWK
SURGXFWVFRQVXPHUVORYHZHDUHZLQQLQJ
FDWHJRU\VKDUH2XUYROXPHJURZWKLQ
HQHUJ\GULQNVLQLVPRUHWKDQGRXEOH
WKHDQQXDOJURZWKLQWKHFDWHJRU\,QRXU
HRUWWRFRQWLQXHRHULQJSURGXFWVWKDW
PHHWFRQVXPHUGHPDQGZHVXFFHVVIXOO\
ODXQFKHG0RQVWHU8OWUDZKLOHPDLQWDLQLQJ
WKHJURZWKRIRXUFRUH0RQVWHUSRUWIROLR
:HVXFFHVVIXOO\UHODXQFKHG)DQWDLQFOXGLQJ
DQHZVOLGHUERWWOHZKLFKLVOLJKWHU
WKDQSUHYLRXVSDFNDJHV7KHQHZGHVLJQ
KDVSURYHQVXFFHVVIXOLQWKHSLORWPDUNHWV
RI3RODQG,WDO\5RPDQLDDQG6HUELD)DQWD
VDOHVJUHZPRUHWKDQLQYROXPHDQG
DOPRVWLQYDOXHLQb
%\OHYHUDJLQJWKHJOREDO&RFD&ROD
7DVWH7KH)HHOLQJFDPSDLJQLQ&HQWUDO
DQG(DVWHUQ(XURSHZHFUHDWHGDZD\
to connect to consumers and increase
VKRSSHUSXUFKDVHVLQFUHDVLQJVDOHVE\
PRUHWKDQFRPSDUHGWRWKHSULRU\HDU,Q
5RPDQLDZHIRFXVHGRQVLQJOHVHUYHSDFNV
LQFOXGLQJODXQFKLQJDOLPLWHGHGLWLRQVOHHYHG
GHVLJQIRUPOJODVVERWWOHVLPSURYLQJ
WUDQVDFWLRQVE\GXULQJWKHSHULRG
7RDFKLHYHRSWLPDOUHIUHVKPHQWDQG
HQMR\PHQWVLQJOHVHUYLQJVVKRXOGEH
RHUHGWRFRQVXPHUVFROG:HSDUWQHUHG
ZLWKD&HQWUDO(XURSHDQUHWDLOHUWRLQFUHDVH
RXUVLQJOHVHUYHYROXPHE\E\XVLQJ
DSSURSULDWHFRROHUV7KLVLQLWLDWLYHZDV
SDUWLFXODUO\VXFFHVVIXOLQ6ZLW]HUODQG
DQG$XVWULD,Q5RPDQLDZHVXFFHVVIXOO\
LQWURGXFHGWKHPOJODVVERWWOHDSDFN
VL]HQRUPDOO\VROGLQWKH+R5H&DFKDQQHOLQ
VXSHUPDUNHWV1HZSDFNDJLQJDQGDYRXUV
IRUVLQJOHVHUYHSDFNVKHOSHGXVLQFUHDVH
VDOHVRIWKHVHSDFNVZKLFKSURGXFHKLJKHU
UHYHQXHSHUOLWUH,Q+XQJDU\%RVQLD
6ORYHQLDDQG6HUELDQHZVOHHNDQGVOLPFDQV
ZHUHLQWURGXFHG7KLVUHVXOWHGLQDWRWDO
YROXPHLQFUHDVHRIFDQVLQWKRVHFRXQWULHV
RIDOPRVWFRPSDUHGWRDLQFUHDVH
LQRWKHUFRXQWULHV
$VWKHSURGXFWDQGSDFNRSWLRQVLQFUHDVH
WRPHHWFRQVXPHUQHHGVDGGLWLRQDO
LQYHVWPHQWLQFRROHUVLVUHTXLUHG,Q
ZHSODFHGFRROHUVDFURVV
RXUPDUNHWV:KHUHDFRQVLVWHQWVXSSO\
RISRZHULVGLFXOWUXQQLQJFRROHUVFDQ
EHFKDOOHQJLQJ,Q1LJHULDZHXVHK\EULG
FRROHUVZKLFKLPSURYHWKHDYDLODELOLW\RI
FROGSURGXFWVWKURXJKDFRPELQDWLRQRI
EDWWHU\DQGLFH:HKDYHDOVRSXUFKDVHG
VPDUWFRROHUVDQGKDYHEHHQSODFLQJ
WKHPLQ,UHODQGDQG%XOJDULD6PDUWFRROHUV
FDQFRPPXQLFDWHWRFRQVXPHUVZKR
KDYHDVSHFLFDSSRQWKHLUVPDUWSKRQHV
HQFRXUDJLQJWKHPWREX\RXULFH
FROGGULQNV
(QHUJ\GULQNVYROXPH
PXF
Water contribution
to our portfolio 20

18% 15 rg
Ene +21
owt
y gr%
h

er
New Fanta bottle nst
10 ic Mo 9%
OLJKWHUE\ an +2
Org rowth
g

22% 5

Coolers placed in
WKHPDUNHW 0
2015 2016

81,000 Other energy brands

Existing Monster territory
New Monster launches

COC016_.indb 44 3/16/17 2:34 PM


,QFUHDVLQJDYDLODELOLW\
7RPHHWFRQVXPHUQHHGVWKHULJKW
SURGXFWVPXVWEHDYDLODEOH%\H[SDQGLQJ
DQGGHHSHQLQJRXUURXWHWRPDUNHWZH
LPSURYHPDUNHWFRYHUDJHDFURVVUHWDLOHUV
DQGKHOSFRQVXPHUVQGPRUHRIWKH
SURGXFWVWKH\ZDQW7KHUHWDLOODQGVFDSH
LVG\QDPLFDQGRXUURXWHWRPDUNHWPXVW
EHWRR'XHWRWKHQDWXUHRIWKHUHWDLO
HQYLURQPHQWRXWOHWVRSHQDQGFORVHRYHU
WLPH2WKHUVFKDQJHIURPWUDGLWLRQDOPRP
SRSVWRUHVWRVSHFLDOLW\RXWOHWVDVWKH\
DUHLPSDFWHGE\WKHJURZWKRIRUJDQLVHG
WUDGHLHVXSHUPDUNHWVGLVFRXQWHUVDQG
FRQYHQLHQFHFKDLQV(YHU\IHZ\HDUVD
:DWHUFDWHJRU\JURZWK
:HDUHOHDGHUVLQVSDUNOLQJEHYHUDJHV
ZKLFKLVWKHPRVWYDOXDEOHFDWHJRU\LQRXU
LQGXVWU\+RZHYHUZDWHULVGULYLQJLQGXVWU\
YROXPHJURZWKDQGWKLVUDWHRIJURZWKLV
SUHGLFWHGWRLQFUHDVH,QWKHLQGXVWU\
ZDWHUFDWHJRU\JUHZZKLOHJURZWKIRU
VSDUNOLQJGULQNVZDVDW:DWHULVRI
RXUYROXPHEXWRIWKHLQGXVWU\YROXPH
LQGLFDWLQJZHQHHGWRLQYHVWLQZDWHUWR
JURZRXUVDOHVYROXPH:HDUHFRPPLWWHG
WRGRLQJWKLVLQZD\VWKDWIRFXVRQYDOXH
DQGGRQRWGLOXWHRXUSURWV:HKDYHD
UDQJHRIZDWHURHULQJVIURPEXONZDWHU
WRDYRXUHGZDWHUVLQVLQJOHVHUYHSDFNV
Coca-Cola HBC
2016 Integrated Annual Report 
Strategic Report
(QVXULQJbSURGXFWTXDOLW\
DQGIRRGVDIHW\
:HVHHNWRSURWHFWFRQVXPHUVDQGHQVXUH
WKHLUWUXVWE\FRQVLVWHQWO\SURYLGLQJVDIH
KLJKTXDOLW\SURGXFWV:HDSSURDFKWKH
VDIHW\DQGTXDOLW\RIRXUSURGXFWVDVDNH\
REMHFWLYHDQGZHVWD\FXUUHQWZLWKQHZ
Corporate Governance
UHJXODWLRQVLQGXVWU\EHVWSUDFWLFHVDQG
PDUNHWSODFHFRQGLWLRQVE\FRQWLQXDOO\
HQJDJLQJZLWKVFLHQWLFDQGVWDQGDUG
VHWWLQJRUJDQLVDWLRQV:HDOVRUHDVVHVV
DQGFRQWLQXDOO\LPSURYHTXDOLW\DQG
IRRGVDIHW\UHTXLUHPHQWVDQGVWDQGDUGV
WKURXJKRXWRXUVXSSO\FKDLQ,QZH
IXUWKHULPSURYHGRXUJRYHUQDQFHIRUTXDOLW\
VXUYH\FDOOHGWKH(YHU\'HDOHU6XUYH\('6 :HFRQWLQXHWRLQFUHDVHWKHYDOXHRIRXU DQGIRRGVDIHW\$VDUHVXOWZHQRZKDYH
LVUHTXLUHGWRHQVXUHZHKDYHFDSWXUHGDOO EUDQGVbWKURXJKSDFNDJLQJ:HLQWURGXFHG LQSODFHDQLQFUHDVHGQXPEHURIPDQGDWHV
UHOHYDQWFKDQJHVLQWKHUHWDLOXQLYHUVHDQG JODVVERWWOHVLQWKHVKDSHRIDGURSRIZDWHU DQGVWULQJHQWTXDOLW\SURFHVVHVWRPLQLPLVH
LQFRUSRUDWHGWKHVHDSSURSULDWHO\ZLWKLQ LQ3RODQG5RPDQLDDQG6HUELDLQDQG WKHRFFXUUHQFHDQGWKHLPSDFWRITXDOLW\

Financial Statements
RXUURXWHWRPDUNHWVROXWLRQV,Q,WDO\ZH WKLVSDFNDJHLQLWLDWLYHJHQHUDWHGGRXEOH DQGIRRGVDIHW\LVVXHV:HDOVRHQKDQFHG
LQWURGXFHGDSLORWVXUYH\LQ5RPHZKLFK GLJLWQHWVDOHVUHYHQXHJURZWKLQDOOWKUHH WKHTXDOLW\RIWKHUHVSRQVHSURFHVVHV
ZHWKHQH[SDQGHGWRFRYHUQLQHDGGLWLRQDO FRXQWULHV,QZHZLOOLQWURGXFHQHZ DQGV\VWHPVWKDWHQDEOHXVWRTXLFNO\
FLWLHVDFFRXQWLQJIRURIWKHWRWDO ZDWHUSURGXFWVDQGSDFNDJLQJEULQJLQJ DGGUHVVTXDOLW\LVVXHVHQVXULQJFXVWRPHUV
QRQDOFRKROLFUHDG\WRGULQNEXVLQHVVLQ HYHQPRUHUHIUHVKPHQWDQGHQMR\PHQW DQGFRQVXPHUVUHWDLQFRQGHQFHLQ
WKHFRXQWU\%\SHUIRUPLQJDFRPSOHWH WRFRQVXPHUV RXUSURGXFWV
DVVHVVPHQWRIWKHRXWOHWXQLYHUVHZH
ZHUHDEOHWRFDSWXUHLQFUHPHQWDOJURZWK
RSSRUWXQLWLHVERWKKRUL]RQWDOO\WKURXJK
QHZRXWOHWVDQGYHUWLFDOO\WKURXJKLPSURYHG
VHUYLFHWRH[LVWLQJFXVWRPHUV:HLGHQWLHG
QHZRXWOHWVLQ5RPHWKDWZHZHUH

Swiss Statutory Reporting

QRWVHUYLFLQJGLUHFWO\DQGH[LVWLQJ
FXVWRPHUVWKDWZHZHUHQRWVHUYLFLQJ
RSWLPDOO\7KHFKDQJHVZHPDGHLQ
UHVSRQVHKDGDQLPPHGLDWHLPSDFWRQ
LQFUHPHQWDOYROXPHUHYHQXHDQGFXVWRPHU
VHUYLFH:HKDYHWDNHQDVLPLODUDSSURDFK
LQ*UHHFH5RPDQLD+XQJDU\5XVVLDDQG
3RODQG:LWKIXUWKHUUROORXWVLQZH Share of single-serve Complaints per
EHOLHYHZHZLOODFKLHYHEHWWHUVHJPHQWDWLRQ
SDFNVbLQYROXPH PbFRQWDLQHUV
DQGVWUXFWXUHLQ1LJHULDWKH&]HFK5HSXEOLF
DQG6ORYDNLD
Supplementary Information

30 28.96
2012 41.3
38.9
25
41.5 22.24 21.74
+3.4pp

2013
39.2 20 19.48
17.90
2014 42.3
39.9 15
+2.8pp

43.1
2015 10
40.3

44.7 5
2016
41.7
0
2012 2013 2014 2015 2016
Sparkling
Total

COC016_.indb 45 3/16/17 2:34 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Customer preference

Preferred
supplier for
our customers

(YHU\WKLQJZHVHOOUHDFKHVRXUFRQVXPHUVWKURXJKRXUFXVWRPHUV
2XUDELOLW\WRGULYHSULFLQJVWUDWHJLHVDQGSURWHFWSURWDELOLW\LV
FULWLFDOIRURXUFXVWRPHUV7KURXJKMRLQWYDOXHFUHDWLRQLQLWLDWLYHV
DQGDZOHVVH[HFXWLRQZHQXUWXUHWKHFXVWRPHUVDWLVIDFWLRQWKDW
LVWKHIRXQGDWLRQRIVKDUHGVXFFHVV
DIFOTAI
Deliver in full, on time and Met or exceeded customer (PSOR\HHHQJDJHPHQWVFRUHLQ
DFFXUDWHO\LQYRLFH expectations commercial team

  88%

COC016_.indb 46 3/16/17 2:34 PM


:RUNLQJKDUGDW
customer partnership
.H\KLJKOLJKWV
&XVWRPHUVDWLVIDFWLRQLQFUHDVHGIRU
DQRWKHU\HDUZLWKRIFXVWRPHUV
UHSRUWLQJZHHLWKHUPHWRUH[FHHGHG
WKHLUH[SHFWDWLRQV
%XLOGLQJVWURQJUHODWLRQVKLSVZLWK
FXVWRPHUVLVKHOSHGE\RXUVXFFHVV
LQGHOLYHULQJLQIXOORQWLPHDQG
Coca-Cola HBC
2016 Integrated Annual Report 
Strategic Report
ZRUNLQJWRJHWKHULPSOHPHQWHGSURFHVVHV
Customer preference
Corporate Governance
WRLPSURYHUHSOHQLVKPHQWYLVXDOVWRVKRZ
:HFRQWLQXHWRDGDSWWRDFKDQJLQJ
SODFHPHQWRISURGXFWVRQDVKHOIDQG
UHWDLOODQGVFDSHLQPDQ\RIRXUPDUNHWV
VWRFNGHOLYHU\:HPHDVXUHRXU',)27$,
3DUWQHULQJZLWKRXUFXVWRPHUVKHOSVXV
SHUIRUPDQFHHDFKGD\IRUHDFKFXVWRPHU
DFKLHYHZLQZLQRXWFRPHVDQGVKDUHG
2XURYHUDOO',)27$,VFRUHIRULV
VXFFHVV7RFUHDWHMRLQWYDOXHZLWKRXU
DQRWKHULPSURYHPHQWFRPSDUHGWRWKH
FXVWRPHUVZHLQYHVWLQLGHQWLI\LQJ
SULRU\HDU
RSSRUWXQLWLHVWKDWPD\VLJQLFDQWO\LPSURYH
WKHLURXWOHWVDOHV:HQRUPDOO\DVVHVVWKHVH Exceeding customer
DFFXUDWHO\LQYRLFHG',)27$, RSSRUWXQLWLHVE\XQGHUWDNLQJWULDOV:KHQZH
RXUVFRUHRIbIRUWKLVLVDQ expectations
GHPRQVWUDWHFRQFUHWHUHVXOWVZHWKHQORRN
LPSURYHPHQWRQWKHSULRU\HDUb DWWKHRSSRUWXQLW\WRVFDOHXSWKDWVXFFHVV 'HOLYHULQJDQGLQYRLFLQJRSWLPDOO\HQVXUHVbWKDW

Financial Statements
WRPRUHRXWOHWVOHYHUDJLQJWKHNQRZOHGJH ZKDWbLVRUGHUHGLVGHOLYHUHG7RHQVXUHWKH
DQGFDSDELOLWLHVRIRXUFRPPHUFLDO ULJKWSURGXFWLVSUHVHQWHGLQWKHULJKWORFDWLRQ
Material issues PDQDJHUV:HSURYLGHWKHWUDLQLQJRXU ZHXVHDQDSSURDFKFDOOHG5LJKW([HFXWLRQ
&RUSRUDWHJRYHUQDQFHEXVLQHVV
HWKLFVDQGDQWLFRUUXSWLRQ
'LUHFWDQGLQGLUHFWHFRQRPLFLPSDFWV
+HDOWKDQGQXWULWLRQ
5HVSRQVLEOHPDUNHWLQJ
3URGXFWTXDOLW\DQGLQWHJULW\
&DUERQDQGHQHUJ\
(PSOR\HHZHOOEHLQJ
DQGHQJDJHPHQW
+XPDQULJKWVDQGGLYHUVLW\
FRPPHUFLDOIXQFWLRQHPSOR\HHVQHHGWR
ZRUNZLWKFXVWRPHUVDQGDFKLHYHMRLQW
VXFFHVV:LQQLQJVKDUHLQWKHQRQDOFRKROLF
UHDG\WRGULQNEHYHUDJHVFDWHJRU\KHOSV
RXUEXVLQHVVZKLOVWGHYHORSLQJWKHFDWHJRU\
LVRIEHQHWWRRXULQGXVWU\:RUNLQJZLWK
DbPDMRUVXSHUPDUNHWFKDLQZHGHYHORSHG
DMRLQWSODQWRHQODUJHWKHZKROHVSDUNOLQJ
VRIWGULQNVFDWHJRU\:HVWDUWHGZLWKD
SLORWLQ+XQJDU\ZKLFKJHQHUDWHGFDWHJRU\
JURZWKRIEHWZHHQDQGFRPSDUHG
WRDFRQWURO%\LGHQWLI\LQJDQRSSRUWXQLW\
WRFUHDWHMRLQWYDOXHZHZHUHDEOHWRVKDUH
WKHFRVWRILPSOHPHQWLQJRIWKHLQLWLDWLYH
DFURVVPRUHWKDQRIWKHFXVWRPHUV
'DLO\5('7KLVPHDVXUHVVDOHVZLWKWKHDLP
RILPSURYLQJDYDLODELOLW\DQGTXDOLW\E\ZRUNLQJ
FORVHO\ZLWKRXUFXVWRPHUVWRH[HFXWH
LQVWRUHZLWKH[FHOOHQFHDNH\GULYHURI
LQFUHPHQWDOYROXPHJURZWK7KH5('V\VWHP
JLYHVXVUHDOWLPHH[HFXWLRQGDWDZKLFK
RXUWHDPOHDGHUVDQGEXVLQHVVGHYHORSHUV
XVHWRWDNHDGYDQWDJHRIRSSRUWXQLWLHVIRU
JURZWK$YHU\VLJQLFDQWSHUFHQWDJHRIRXU
Swiss Statutory Reporting
FXVWRPHUEDVHLVLQFOXGHGLQWKHGDWDDQG
WKLVFRYHUDJHFRQWLQXHVWRJURZ:HPHDVXUH
PXOWLSOHH[HFXWLRQHOHPHQWVDQGWKHGDWDLV
LPPHGLDWHO\XSORDGHGDQGDYDLODEOHIRUDFWLRQ
K\SHUPDUNHWVDQGVWRUHVLQ&HQWUDO(XURSH
:KLOHZHGHYHORSFDSDELOLWLHVDW*URXS
OHYHOWKHFDWHJRU\YLVLRQLVWKHQDGDSWHGWR
GLHUHQWPDUNHWVDVQHFHVVDU\
%XLOGLQJVWURQJFXVWRPHU
5LJKW([HFXWLRQ'DLO\5('
An approach to execute in-store
with excellence
Supplementary Information

40
relationships
e
%XLOGLQJVWURQJUHODWLRQVKLSVDQGVKDUHG bas
32 rage
YDOXHZLWKFXVWRPHUVLVRQO\SRVVLEOHLIZH
ove
KDYHWKHEDVLFVULJKW)RURXU&RPSDQ\WKLV thec
ing
27

27

PHDQVZHPXVWGHOLYHULQIXOORQWLPHDQG 24 and
25

xp
DFFXUDWHO\LQYRLFH',)27$,:HWUDFNRXU E
20

VXFFHVVLQDFKLHYLQJWKLVDQGFRQVLVWHQWO\
ZRUNWRLPSURYHRXUSHUIRUPDQFHRIWHQ 16
16

16
14

WKURXJKJUHDWHUFROODERUDWLRQ)RUH[DPSOH
ZLWKDPDMRUFXVWRPHUZHPDGHDVKHOI 8
VXUYH\WKUHHWLPHVDGD\IRUVL[ZHHNVLQ
5

RXWOHWVDFURVVIRXUFRXQWULHV7KLVbHQDEOHG
1
4

XVWRHVWDEOLVKDQGUHVROYHWKHURRWFDXVHV
RIRXWRIVWRFNSURGXFWV:HFDOFXODWHGWKH
SURWRSSRUWXQLW\ZLWKWKHFXVWRPHUDQG
0
2012 2013 2014 2015 2016
Countries with >35% numerical coverage
CCH countries with RED framework

COC016_.indb 47 3/16/17 2:34 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&XVWRPHUSUHIHUHQFHFRQWLQXHG

,Q5XVVLDZHHYHQKDYHSKRWRUHFRJQLWLRQ FDSDELOLWLHV,QRXUVFRUHVRQFH ZLWKbXV3URPRWLRQRSWLPLVDWLRQWRROV

VRIWZDUHZKLFKDXWRPDWHVWKHSURFHVV DJDLQLPSURYHGFRPSDUHGWRWKHSULRU LQIRUPDQGHPSRZHUNH\DFFRXQW
DQGSURYLGHVUHDOWLPHDQGDFFXUDWH \HDUb2XUDELOLW\WRGULYHSULFLQJVWUDWHJLHV PDQDJHUVDOORZLQJWKHPWRGULYHEHWWHU
GDWD7KLVSURFHVVKDVEHHQUHFRJQLVHG DQGSURWHFWSURWDELOLW\LVFULWLFDOIRURXU ORFDOGHFLVLRQVWRLQFUHDVHUHWXUQRQ
E\7KHb&RFD&ROD&RPSDQ\DVEHVWLQ FXVWRPHUV7RGHOLYHUYDOXHZHZRUNYHU\ LQYHVWPHQW7KHVHZHUHLPSOHPHQWHGLQ
FODVVJOREDOO\:HNQRZWKHUHLVDGLUHFWOLQN KDUGLQWKUHHDUHDVFXVWRPHUSDUWQHUVKLS LQPDQ\RIRXUPDMRUPDUNHWVLQFOXGLQJ
EHWZHHQYROXPHJURZWKDQGLPSURYHPHQWLQ LPSURYLQJUHWXUQRQLQYHVWPHQWDQGEXLOGLQJ ,WDO\$XVWULD+XQJDU\3RODQG5XVVLD
5('V\VWHPLQGLFDWRUV)URPRXUH[SHULHQFH IXWXUHFDSDELOLWLHV 5RPDQLDDQG*UHHFH
ZHHVWLPDWHWKDWIRUHYHU\RQHSHUFHQWDJH
SRLQWRILPSURYHPHQWLQWKH5('LQGH[RXU Customer partnership %XLOGLQJIXWXUHFDSDELOLWLHV
VDOHVYROXPHZLOOLQFUHDVHEHWZHHQ :HKHOSWRLPSURYHERWKRXUFXVWRPHUV :HLQYHVWLQDQGLQWURGXFHQHZ
DQG ERWWRPOLQHDQGRXURZQE\SDUWQHULQJZLWK WHFKQRORJLHVWRLPSURYHRXUFDSDELOLWLHV
WKHPWRLPSURYHWKHGHVLJQDQGOD\RXW DQGGHYHORSRXUSHRSOH)RUH[DPSOHLQ
&XVWRPHUVDWLVIDFWLRQb RIWKHLUEHYHUDJHDLVOH:HDOVRPDNH 3RODQGZHZHUHUHFRJQLVHGZLWKDQLQGXVWU\
$VSDUWRIRXUHRUWVWRFRQWLQXDOO\ LQYHVWPHQWVWRVXSSRUWVPDOOEDVNHW DZDUGIRUEHVWHFRPPHUFHVXSSOLHUDQG
LPSURYHDQGFUHDWHVWURQJFXVWRPHU WUDQVDFWLRQVDQGUHGXFHRXWRIVWRFN ZHDUHUHSOLFDWLQJRXUZLQQLQJDSSURDFK
UHODWLRQVKLSVZHVXUYH\RXUFXVWRPHUV LQFLGHQWV2XUDOLJQPHQWDQGFROODERUDWLRQ LQ3RODQGDFURVVRXUPDUNHWV%\ZRUNLQJ
DQQXDOO\WRXQGHUVWDQGKRZWKH\SHUFHLYH VXFFHVVLVPHDVXUHGZLWKDVKDUHG ZLWKFXVWRPHUVDWD*URXSOHYHOZHDUH
RXU&RPSDQ\7KHVXUYH\LQYROYHVDVDPSOH GDWDVFRUHFDUGLQFOXGLQJUHYHQXHWKH DEOHWRSURYLGHWKHXQLIRUPLW\RISURGXFW
RIFXVWRPHUVDQGLVFRQGXFWHG FXVWRPHUVVKDUHRIWKHFDWHJRU\DQGRXU LQIRUPDWLRQWKH\QHHG7KLVKHOSVXV
IRUXVE\PDUNHWUHVHDUFKUP*URZWK VKDUHRIWKDWFDWHJRU\7KHVHLQLWLDWLYHVDUH LPSURYHRXURQOLQHSUHVHQFHDQGHQVXUH
IRU.QRZOHGJH*I.b:HDVNFXVWRPHUV GHOLYHUHGWKURXJKMRLQWEXVLQHVVSURFHVVHV FRQVLVWHQWGLJLWDOSUHVHQWDWLRQRIRXU
WRUDQNXVDPRQJDOOEHYHUDJHVXSSOLHUV LQFOXGLQJVXSSO\FKDLQPDQDJHPHQWZKLFK SURGXFWV7RVXSSRUWWKHUHSOLFDWLRQRIWKLV
LQFOXGLQJVXSSOLHUVRIEHHUDQGGDLU\ FXVWRPHUVYLHZDVEHVWLQFODVV DSSURDFKZHUDQLQWHUQDOZRUNVKRSVWRJLYH
SURGXFWV,QPRUHWKDQKDOIRIRXU RXUNH\DFFRXQWDQGFKDQQHOPDQDJHUV
FXVWRPHUVVDLGZHH[FHHGHGWKHLU Improving return on investment DJUHDWHUDELOLW\WRVXSSRUWDQGGHYHORS
H[SHFWDWLRQV7KHQXPEHURIFXVWRPHUV $VSDUWRIEXLOGLQJRXUFDSDELOLW\WRPDQDJH HFRPPHUFHZLWKRXUFXVWRPHUVLQWKHLU
ZKRVDLGZHPHWWKHLUH[SHFWDWLRQV UHYHQXHJURZWKLQZHLQWURGXFHG FRXQWULHV:HORRNIRUZDUGWRFRQWLQXLQJ
LQFUHDVHGSHUFHQWDJHSRLQWVWR DQHZ&RPPHUFLDO3ROLF\DQGVLPSOLHG WRPHHWWKHFKDOOHQJHVbRIWKHVKLIWLQJUHWDLO
GXULQJWKH\HDU7KHIHHGEDFNDQG RXUDSSURDFKWRGLVFRXQWVZKLFKKDOYHG ODQGVFDSHDQGZRUNLQJKDUGWRQXUWXUH
LQIRUPDWLRQZHUHFHLYHIURPFXVWRPHU WKHQXPEHURISURGXFWFODVVLFDWLRQV WKHFXVWRPHUUHODWLRQVKLSVDQGFXVWRPHU
VDWLVIDFWLRQVXUYH\VKHOSVGLUHFWSULRULWLHV 7KLVDOORZVXVWRIRFXVRXULQYHVWPHQW VDWLVIDFWLRQWKDWLVWKHIRXQGDWLRQRIRXU
IRUWUDLQLQJDQGGHYHORSPHQWVKRZLQJ RQSULRULWLVHGJURZWKGULYHUVDQGPDNHV VKDUHGVXFFHVV
XVZKHUHZHQHHGWRLPSURYHVNLOOVDQG LWbHDVLHUIRURXUFXVWRPHUVWRGREXVLQHVV

Engaged people in *INLQGHSHQGHQWVXUYH\ DIFOTAI improvement

commercial execution RIbFXVWRPHUVDWLVIDFWLRQ 
 JRRGDQGH[FHOOHQW
100 100 100

80 98 97.6 97.9
83.0
81.9
79.6

90
78.9

88 88 97.0
78.5

86 96.6
85
CCHBC index

CCHBC commercial dept.

84 96.1
66.2

66.6
High-performing norm

60 96
63.4
Coca-Cola Bottlers index

81 81
60.9
Coca-Cola System index

58.5

80
FTSE 100 index

FMCG norm

40 94

70
20 92

60 0 90
2016 2016 2016 2016 2016 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
'DWDIRU)76(FRPSDQLHVDQGKLJKSHUIRUPLQJ HQ of key accounts ',)27$,LVDPHDVXUHRIGHOLYHU\LQIXOORQWLPH
FRPSDQLHVUHSUHVHQWVWKRVHFRPSDQLHV Traditional outlets DQGbDFFXUDWHO\LQYRLFHG
SDUWLFLSDWLQJLQ:LOOLV7RZHUV:DWVRQEHQFKPDUNLQJ

COC016_.indb 48 3/16/17 2:34 PM

 2016
2016Integrated
Coca-Cola HBC
IntegratedAnnual
Annual Report 

Cost leadership

Strategic report
Report
Remaining

Corporate Governance
focused on
FRVWHFLHQFLHV
Financial Statements
Swiss Statutory Reporting
Supplementary Information

:HFRQWLQXDOO\VHHNWRPDNHRXUEXVLQHVVPRUHHFLHQWDQGOHDQHU
%\bRSWLPLVLQJRXULQIUDVWUXFWXUHFHQWUDOLVLQJEDFNRFHIXQFWLRQVDQG
UHGXFLQJWKHZDWHUDQGHQHUJ\LQWHQVLW\RISURGXFWLRQSURFHVVHVZHDUH
GHPRQVWUDWLQJWKDWZHFDQGHOLYHUH[FHOOHQWUHVXOWVZLWKIHZHUUHVRXUFHV

Reduction in number of Improvement in water Plants that have eliminated

plants since 2008 use ratio DOOZDVWHWRODQGOO

-30%  4

COC016_.indb 49 3/16/17 2:34 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RVWOHDGHUVKLSFRQWLQXHG

Producing economic value

with less resource
,QUDZPDWHULDOFRVWVZHUHVWDEOH Infrastructure optimisation
.H\KLJKOLJKWV FRPSDUHGWRDQGIRUHLJQH[FKDQJH
7KHGULYHWRRSWLPLVHRXULQIUDVWUXFWXUH
&RQVROLGDWHGWKUHHPRUHSODQWV PRYHPHQWVLQFHUWDLQFRXQWULHVFRQWLQXHG
FRQWLQXHGLQZLWKDIRFXVRQ
LQbWKH\HDU WRKDYHDQDGYHUVHLPSDFWRQRXUSURWDELOLW\
WUDQVIRUPLQJH[LVWLQJSODQWVLQWRFRVW
6HWXSVKDUHGVHUYLFHVIRU1LJHULD +RZHYHURXUIRFXVRQFRVWFRQWURO
HFLHQWPHJDSODQWVWKDWFDQHHFWLYHO\
and Russia FRQWLQXHGDQGWKLVKHOSHGWRHQVXUHWKDW
VHUYHDFRXQWU\RUUHJLRQ$IWHUSULPDULO\
WKHLQFUHDVHLQUHYHQXHVGXHWRSULFHDQG
,QYHVWHGPLOOLRQLQZDWHU IRFXVLQJRQRXU(XURSHDQLQIUDVWUXFWXUH
SURGXFWPL[LPSURYHPHQWVEHQHWHGRXU
DQGPLOOLRQLQHQHUJ\ RYHUWKHODVWVHYHUDO\HDUVZHKDYHWXUQHG
ERWWRPOLQH2XUFRPSDUDEOHRSHUDWLQJ
UHGXFWLRQLQLWLDWLYHV RXUDWWHQWLRQWRRSWLPLVLQJLQIUDVWUXFWXUH
PDUJLQLQFUHDVHGIURPIRUWR
0DGHYHQHZVXVWDLQDELOLW\ LQb5XVVLDDQG1LJHULD
IRU
commitments ,QRXU(XURSHDQPDUNHWVZHFORVHGWKH
,QDGGLWLRQWRPDQDJLQJWKHFRVWVWUXFWXUH
/XNDSODQWLQ6ORYDNLDDQGWKH$O\WXV
RIbWKHEXVLQHVVZHFRQWLQXHGWRLPSURYH
SODQWLQb/LWKXDQLD:HZLOODEVRUEWKH
RXUDELOLW\WRXVHQDWXUDOUHVRXUFHV
Material issues HFLHQWO\:HKDYHWDNHQDGGLWLRQDO
FDSDFLW\ZLWKLQRXUH[LVWLQJQHWZRUN
'LUHFWDQGLQGLUHFWHFRQRPLFLPSDFWV ZLWKbKLJKHUVSHHGbOOLQJOLQHVDQGPRUH
VWHSVWRbHQVXUHWKDWZHDFKLHYHRXU
FURVVERUGHUbVKLSPHQWV
&DUERQDQGHQHUJ\ ORQJWHUPWDUJHWVWRUHGXFHZDWHUDQG
HQHUJ\FRQVXPSWLRQDQGFRQWULEXWH ,Q5XVVLDZHFORVHGWKHUHODWLYHO\VPDOO
3DFNDJLQJUHF\FOLQJDQG
WRWKHDFKLHYHPHQWRIJOREDOJRDOV 2U\HOSODQWLQWKH(XURSHDQSDUWRI5XVVLD
ZDVWHPDQDJHPHQW
UHJDUGLQJFOLPDWHDQGFOHDQZDWHU,Qb DQGWUDQVIHUUHGWKLVSURGXFWLRQFDSDFLW\WR
6XVWDLQDEOHVRXUFLQJ ZHLQYHVWHGDWRWDORIPLOOLRQLQ IDFLOLWLHVLQ0RVFRZDQG6LEHULD7KLVFKDQJH
:DWHUVWHZDUGVKLS ZDWHUbDQGHQHUJ\VDYLQJLQLWLDWLYHVGXULQJ SURYLGHVEHWWHUJHRJUDSKLFDOLJQPHQW
(PSOR\HHZHOOEHLQJ WKH\HDUDQGZHHVWLPDWHWKDWWKHVH EHWZHHQSURGXFWLRQDQGGHPDQG:KLOHZH
DQGHQJDJHPHQW LQYHVWPHQWVZLOOEHUHFRXSHGWKURXJK SURDFWLYHO\DGGUHVVHGWKHPDFURHFRQRPLF
ORZHUHQHUJ\DQGZDWHUFRVWVE\ YRODWLOLW\LQWKHFRXQWU\E\WHPSRUDULO\
FORVLQJOOLQJOLQHVZHUHWDLQWKHRSWLRQ
WRbUHVWDUWSURGXFWLRQRQWKHVHOLQHVRQFH
WKHPDUNHWLPSURYHVSRWHQWLDOO\LQ

Infrastructure optimisation in Europe

55 52 6
5.5
50
45 5
40
35 4
31
3.7
30
3
25
20 2
15
10 1
5
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016
Plants Lines per plant
:RUNGRQHLQ(XURSHH[FOXGLQJ5XVVLD1LJHULD%HODUXVDQG$UPHQLD

COC016_.indb 50 3/16/17 2:34 PM


,QORJLVWLFVZHFRQWLQXHRXUGULYHWRVKLIW
FRVWVIURP[HGWRYDULDEOHIRULQVWDQFHE\
IXUWKHURXWVRXUFLQJRXUORJLVWLFVDFWLYLWLHV
DQGXVLQJRIWKLUGSDUW\SDUWQHUV
,Q1LJHULDZHEHJDQWKHSURFHVVRI
HVWDEOLVKLQJIXWXUHPHJDSODQWVWKURXJK
H[SDQVLRQRISURGXFWLRQIDFLOLWLHVLQ
ORFDWLRQVLQFOXGLQJ$VHMLUH$EXMDDQG3RUW
+DUFRXUW2SWLPLVDWLRQRISURGXFWLRQ
DQGORJLVWLFVZLOOFRQWLQXHLQWKHFRXQWU\
WKURXJKZLWKOHVVHFLHQWSODQWV
FORVHGLQGXHFRXUVH:HFORVHG
GLVWULEXWLRQFHQWUHVDFFRXQWLQJIRUPRUH
WKDQDTXDUWHURIRXUORJLVWLFVFDSDFLW\
GXULQJ7KHVHFKDQJHVUHGXFHG
RXU[HGFRVWVDQGLPSURYHGRSHUDWLRQDO
HFLHQFLHV0HDQZKLOHZHFRQWLQXHWR
LQYHVWLQ3(7SDFNDJLQJDVWKH1LJHULDQ
PDUNHWVKLIWVIURPUHWXUQDEOHJODVVERWWOHV
WRSODVWLFERWWOHV
$FURVVWKH*URXSZHIRFXVHGRXU
LQYHVWPHQWVRQXSJUDGLQJRXUOLQHV
Coca-Cola HBC
2016 Integrated Annual Report 
Strategic Report
\RXQJDGXOWFRQVXPHUVLVWKHQHZ)DQWD
6OLGHUERWWOHGHVLJQZKLFKIHDWXUHVDWZLVW
LQWKHORZHUKDOIRIWKHERWWOH:LWKLQWKH
&RFD&ROD6\VWHPZHKDYHOHGWKHUROORXW
RIWKHQHZ)DQWDERWWOHLQWURGXFLQJLWLQRXU
(XURSHDQPDUNHWVGXULQJ
2XURSWLPLVDWLRQZRUNKDVUHVXOWHGLQD
Corporate Governance
UHGXFWLRQLQWKHQXPEHURISODQWVDFURVV
WKH*URXSIURPLQWRDWWKHHQG
RI'XULQJWKHVDPHSHULRGZHDOVR
UHGXFHGWKHQXPEHURIRXUZDUHKRXVHV
DQGGLVWULEXWLRQFHQWUHVE\$VDUHVXOW
WKHDYHUDJHQXPEHURIOOLQJOLQHVSHUSODQW
KDVLQFUHDVHGIURPWRIRUPRUH DQGDOORFDWLRQPDVWHUGDWDDQGKXPDQ
HFLHQWDQGH[LEOHIDFLOLWLHV2XUFDSDFLW\ UHVRXUFHSURFHVVHV,QFROOHFWLRQ
XWLOLVDWLRQDFURVVWKHEXVLQHVVZDV DQGGLVSXWHPDQDJHPHQWSXUFKDVLQJ
GXULQJSHDNPRQWKVLQJLYLQJXVSOHQW\ administration and customer master data
RIURRPIRUJURZWKZLWKRXWWKHQHHGIRU DFWLYLWLHVZHUHVXFFHVVIXOO\FHQWUDOLVHG
DGGLWLRQDOLQYHVWPHQW DQGWUDQVIHUUHGWRWKH%62IURPDOORIRXU
Financial Statements
PDUNHWVH[FHSW1LJHULD:HH[SHFWWKH
%XVLQHVVVWDQGDUGLVDWLRQ %62WRDVVXPHWKHVHWDVNVIRURXU1LJHULDQ
:HODXQFKHGDVKDUHGEXVLQHVVVHUYLFHV RSHUDWLRQVLQ,QODWHZHQDOLVHG
PDNLQJVXUHZHFDQVXSSRUWRXULQLWLDWLYHV RUJDQLVDWLRQ%62LQLQ6RD WKHVHWXSRIRXU1L]KQ\1RYJRURG5XVVLD
WRRHUFRQVXPHUVWKHULJKWSURGXFWLQ %XOJDULDWRFHQWUDOLVHDQGVWDQGDUGLVH VHUYLFHFHQWUHZKLFKSHUIRUPVWKHVDPH
WKHULJKWSDFNDWWKHULJKWSULFHWRVXLW WKHPDQDJHPHQWRIJHQHUDODFFRXQWLQJ VHUYLFHVDVWKH%62LQ6RDEXWLVHQWLUHO\
HYHU\RFFDVLRQ:HKDYHOHYHUDJHGRXU SURFXUHPHQWDQGLQYRLFLQJFDVKFROOHFWLRQ IRFXVHGRQVHUYLQJRXU5XVVLDQRSHUDWLRQ
VFDOHLQVSDUNOLQJEHYHUDJHVRHULQJD
IXOOQRQDOFRKROLFUHDG\WRGULQNSRUWIROLR
to our customers and consumers, and
PDGHVLJQLFDQWLPSURYHPHQWVLQWKH

Swiss Statutory Reporting

HQYLURQPHQWDOLPSDFWRISDFNDJLQJ:H
DUHFRQYHUWLQJRXUFDQVIURPWKHVWDQGDUG
OLWUHVL]HWRVOLPGHVLJQFDQVDQGZH
Take 40% of the
DUHLQWURGXFLQJVPDOOHUFDQVL]HVWRRHU total energy we
use from
FRQVXPHUVPRUHFKRLFHVDQGDOWHUQDWLYHV renewable and
clean energy
IRUGLHUHQWRFFDVLRQV$QRWKHUJRRG sources
Recover for
H[DPSOHRISDFNDJLQJWKDWDSSHDOVWRRXU recycling an
average of 40% of
total packaging we
introduce to our
markets

Source 20% of the

total PET we use
How Cost from recycled PET
/HDGHUVKLSOLQNV and/or PET from
Supplementary Information

renewable material
WRbRXU
VXVWDLQDELOLW\
commitments
Reduce water use Reduce packaging by
internally by 30% 25% per litre of
beverage produced

Certify over
95% of our key
agricultural ingredients
against the Coca-Cola
Systems Sustainable
Agricultural Guiding
Principles

i 5HDGPRUHDERXWRXUVXVWDLQDELOLW\FRPPLWPHQWVRQSDJH

COC016_.indb 51 3/16/17 2:34 PM

  Coca-Cola HBC
2016 Integrated Annual Report
&RVWOHDGHUVKLSFRQWLQXHG
'XULQJWKH%62LQ6RDDFKLHYHG
DGGLWLRQDOHFLHQFLHVOHDGLQJWR suppliers
UHGXFWLRQLQWKHDYHUDJHFRVWWRSURFHVV
DbYHQGRULQYRLFHIURPWR WHFKQRORJLHVIRUSURGXFWLRQDQGFROGGULQN
increased automatic customer
DOORFDWLRQVWRRIRUGHUV ORJLVWLFVSURYLGHUVWRPLQLPLVHRXULPSDFWV
LPSURYHGDFFRXQWLQJHFLHQF\DQG
LQFUHDVHGSURGXFWLYLW\RIPDVWHUGDWD
SURFHVVHVE\
:KLOHFDUU\LQJRXWWKLVWUDQVIRUPDWLYH
ZRUNWKH%XOJDULDQ%62FRQWLQXHGWR
LPSURYHRQLQWHUQDOFXVWRPHUVDWLVIDFWLRQ
VFRUHVUHDFKLQJLQ7RVXVWDLQ
WKLVDQGLQFUHDVHWKHDGGHGYDOXHIRURXU
RSHUDWLRQVWKH%62ZRUNVZLWKLQWHUQDO
FXVWRPHUVWRLPSURYHSURFHVVHVPDNH
,7bV\VWHPVPRUHLQWXLWLYHDQGEXLOGD
FXOWXUHbRIbFXVWRPHUFHQWULFLW\
7KH%62DOVRVHUYHVDVDWDOHQWSRROIRU
RXU&RPSDQ\ZLWKSHRSOHSURPRWHGWR
FRXQWU\RSHUDWLRQVDQGFRUSRUDWHVHUYLFH
FHQWUHUROHVLQ
Cash generation
2XUEXVLQHVVLVKLJKO\FDVKJHQHUDWLYH
SURGXFLQJDQDYHUDJHRIFPLOOLRQ
RIIUHHFDVKRZSHUDQQXP,QZH
JHQHUDWHGPLOOLRQRIIUHHFDVKRZ
E\PDLQWDLQLQJH[FHOOHQWZRUNLQJFDSLWDO
GLVFLSOLQHDQGE\LPSURYLQJRXUSURWDELOLW\
7KLVUHHFWVRXUHRUWVWRLPSURYHRXU
ZRUNLQJFDSLWDOPDQDJHPHQWDVLJQLFDQW
IRFXVRIRXU&RPSDQ\IURPZKHQ
ZHEHJDQH[SHULHQFLQJDUHGXFWLRQLQRXU
Partnering with our
:HSDUWQHUZLWKRXUVXSSOLHUVWRSURYLGHQHZ
HTXLSPHQWDQGSDFNDJLQJDQGZLWKRXU
DQGGULYHRXUSHUIRUPDQFH2XUVXVWDLQDEOH
VXSSO\MRLQWYDOXHFUHDWLRQLQLWLDWLYHVDQG
MRLQWYHQWXUHVZLWKRXUVXSSO\SDUWQHUV
SOD\DQLPSRUWDQWUROHLQVXSSRUWLQJWKH
&RPSDQ\WRDFKLHYHWKLVWDUJHW:HSODFH
VLJQLFDQWIRFXVRQIRUPLQJSDUWQHUVKLSV
ZLWKPXOWLQDWLRQDOVXSSOLHUVWKDWKDYHVXSSO\
SRLQWVORFDWHGZLWKLQRXUFRXQWULHVZKLOH
DOVRGHYHORSLQJVWURQJORFDOVXSSOLHUVDFURVV
RXUWHUULWRULHV7KHVHHRUWVVXSSRUWRXU
VWUDWHJ\IRUORFDOVRXUFLQJDQGFRQWULEXWLQJ
WRVRFLRHFRQRPLFGHYHORSPHQWLQWKH
FRXQWULHVZKHUHZHFRQGXFWEXVLQHVV)RU
DJULFXOWXUDOFRPPRGLWLHVZHZRUNZLWK
PXOWLQDWLRQDOVXSSOLHUVWRVRXUFHLQJUHGLHQWV
IURPIDUPVORFDWHGLQ&RFD&ROD+%&
FRXQWULHV,Q6HSWHPEHUZHKRVWHGD
VXVWDLQDEOHDJULFXOWXUHZRUNVKRSLQ$WKHQV
ZLWKNH\VXSSOLHUVWRDOLJQRXUHRUWV
WRZDUGVDVXVWDLQDEOHVXSSO\FKDLQ
,QWHJUDWLQJVXVWDLQDELOLW\
LQbEXVLQHVVSURFHVVHV
6LQFHZHKDYHUHTXLUHGDOOFRXQWULHV
WRbLQFOXGHTXDQWLWDWLYHZDWHUFRQVHUYDWLRQ
DQGFDUERQUHGXFWLRQFULWHULDLQWKHLU
FDSLWDOH[SHQGLWXUHLQYHVWPHQWDSSUDLVDOV
7KLVbZRUNZKLFKZDVUHFRJQLVHGZLWK
D)LQDQFHIRUWKH)XWXUH$ZDUGIURP
:DWHUDQGHQHUJ\UHGXFWLRQ
,QZHLQYHVWHGPRUHWKDQ
PLOOLRQbLQZDWHUUHGXFWLRQLQLWLDWLYHV
DWbRXUSODQWVDQGZHVDYHGPLOOLRQ
FXELFPHWUHVRIZDWHU2XUZDWHUXVHUDWLR
KDVLPSURYHGE\IRUFRPSDUHG
WRbWKHbSULRUb\HDU
:HDOVRLQYHVWHGbPLOOLRQbLQWR
UHGXFHPLOOLRQ0-RIHQHUJ\UHVXOWLQJ
LQRXUHQHUJ\XVHUDWLRLPSURYLQJE\
FRPSDUHGWR%\PDQGDWLQJWKDWRXU
WRSZDWHUDQGWRSHQHUJ\VDYLQJ
LQLWLDWLYHVEHXVHGDWDOOVLWHVZHDFKLHYHG
DQbLPSOHPHQWDWLRQUDWHRIIRUZDWHU
DQGIRUHQHUJ\E\\HDUHQG
3DFNDJLQJUHF\FOLQJDQG
waste management
:HFRQWLQXHWRIRFXVRQUHGXFLQJSDFNDJLQJ
WKURXJKOLJKWZHLJKWLQJLQLWLDWLYHV0RUHRYHU
ZHSXEOLVKHGWKUHHQHZFRPPLWPHQWV
UHODWHGWRSDFNDJLQJ,QYVZH
DYRLGHGWRQQHVRI3(7PDWHULDODQG
XVHGWRQQHVRIUHF\FOHG3(7DQG
WRQQHVRISODQW3(7PDWHULDO$VD
UHVXOWZHDYRLGHGPRUHWKDQWRQQHV
RIFDUERQHPLVVLRQV
)RXURIRXU(XURSHDQSURGXFWLRQVLWHVLQ
6ZLW]HUODQG1RUWKHUQ,UHODQGDQG$XVWULD
KDYHVXFFHHGHGLQHOLPLQDWLQJDOOZDVWH
VHQWWRODQGOO:HDOVRIRXQGQHZVROXWLRQV
IRUVRPHW\SHVRIZDVWHLQRXU'HYHORSLQJ
DQG(PHUJLQJPDUNHWVLQ7KHVH
HRUWVHQDEOHGXVWRUHGXFHWKHWRQQDJH
$FFRXQWLQJIRU6XVWDLQDELOLW\$6LQ RIbODQGOOZDVWHIURPRXURSHUDWLRQVE\
RSHUDWLQJSURWV
LQYROYHVHYDOXDWLQJRXULQYHVWPHQWSURMHFWV 0HDVXUHGSHUOLWUHRISURGXFHG
+DYLQJUHDFKHGD\HDUHQGZRUNLQJFDSLWDO EHYHUDJHRXUZDVWHUDWLRIHOOE\
IRUWKHLULPSDFWVRQSHRSOHDQGWKHSODQHW
SRVLWLRQOHVVWKDQQHJDWLYHPLOOLRQ IURPbbJOLWUHEHYHUDJHLQWR
,PSDFWVDVVHVVHGDUHERWKGLUHFWHJZDWHU
IXUWKHURSWLPLVDWLRQRIZRUNLQJFDSLWDOFDQ JOLWUHEHYHUDJHLQ
HQHUJ\FDUERQDQGLQGLUHFWHJMREVDQG
RQO\EHLQFUHPHQWDO+RZHYHULQOLQHZLWK
WD[HVFDSDELOLW\EXLOGLQJHQYLURQPHQWDO )XUWKHUPRUHZHFRQWLQXHWRVXSSRUW
RXUQDQFLDOWDUJHWVZHDUHH[SHFWLQJD
H[WHUQDOLWLHVFXOWXUDOKHULWDJHDQG SDFNDJLQJZDVWHPDQDJHPHQWVFKHPHV
ELJJHUFRQWULEXWLRQRIbSURWVWRIUHHFDVK
VWDNHKROGHUSHUFHSWLRQ2XUb*URXSOHYHO WKDWUHFRYHUDQGUHF\FOHSRVWFRQVXPHU
RZLQWKHFRPLQJ\HDUV
FDUERQDQGZDWHUWHDPZRUNVWRJHWKHU SDFNDJLQJ,QZHUHFRYHUHGIRU
2XUPHGLXPWHUPWDUJHWIRUFDSLWDO ZLWKFRXQWU\FDUERQDQGZDWHUFKDPSLRQV UHF\FOLQJDSSUR[LPDWHO\RISDFNDJLQJ
H[SHQGLWXUHLVIURPWRRIQHW WRH[HFXWHFDUERQHQHUJ\DQGZDWHU PDWHULDOSODFHGLQWKHVHFRXQWULHVDQG
VDOHVUHYHQXH7KHPDMRULW\RIWKLVLV UHGXFWLRQLQLWLDWLYHV DSSUR[LPDWHO\DFURVVRXURSHUDWLRQV
LQYHVWHGLQUHYHQXHJHQHUDWLQJDVVHWV
,QZHFRQWLQXHGXVLQJRXULQWHUQDO
VXFKbDVVWDWHRIWKHDUWOOLQJOLQHVDQG
FDUERQSULFHDQGWUXHFRVWRIZDWHUZLWK
FROGbGULQNHTXLSPHQW2XUQHWH[SHQGLWXUHV
ZDWHUVWUHVVPXOWLSOLHUWRVHWHQYLURQPHQWDO
IRUDPRXQWHGWRPLOOLRQ
SODQVIRURXUSURGXFWLRQVLWHV7KHZDWHU
HTXLYDOHQWWRRIQHWVDOHVUHYHQXH
VWUHVVPXOWLSOLHULVGHQHGSHUULYHU
([FOXGLQJWKHVDOHRILGOHDVVHWVFDSLWDO
EDVLQXVLQJZDWHUDQGULVNGDWDIURPWKH
H[SHQGLWXUHZDVRIQHWVDOHVUHYHQXH
:RUOG%XVLQHVV&RXQFLOIRU6XVWDLQDEOH
*LYHQRXULQWHJUDWHGFDSLWDOH[SHQGLWXUH
'HYHORSPHQWV*OREDO:DWHU7RRO
GHFLVLRQVDQGRXUGLVFLSOLQHGDSSURDFK
7KHb::)ZDWHUULVNOWHULVDOVRXVHG
WRFDSLWDOH[SHQGLWXUHZHFRQWLQXHWR
WRbHYDOXDWHWKHZDWHUULVNRIRXUVXSSOLHUV
EHOLHYHRXUPHGLXPWHUPWDUJHWUDQJHLV
DSSURSULDWHIRUQXUWXULQJRXUIXWXUHJURZWK

COC016_.indb 52 3/16/17 2:34 PM


2XUFDUERQUHGXFWLRQWDUJHWVDUHEDVHG
RQFOLPDWHVFLHQFH7KH6FLHQFH%DVHG
7DUJHWVLQLWLDWLYHDSDUWQHUVKLSEHWZHHQWKH
&DUERQ'LVFORVXUH3URMHFWWKH81*OREDO
&RPSDFWWKH:RUOG5HVRXUFHV,QVWLWXWHDQG
WKH:RUOG:LOGOLIH)XQGKHOSVFRPSDQLHV
GHWHUPLQHKRZPXFKWKH\PXVWFXW
HPLVVLRQVWRSUHYHQWWKHZRUVWLPSDFWVRI
FOLPDWHFKDQJH$VZHZHUHRQHRIWKHUVW
FRPSDQLHVJOREDOO\WRKDYHVFLHQFHEDVHG
WDUJHWVDSSURYHGWKURXJKWKHLQLWLDWLYH
RXUEXVLQHVVFDVHKDVEHHQSXEOLVKHGbDVD
UHIHUHQFHDWKWWSVFLHQFHEDVHGWDUJHWV
RUJFDVHVWXGLHV
Water use ratio in plants
Coca-Cola HBC
2016 Integrated Annual Report 
Strategic Report
&DVHVWXG\
,QRXUSODQWLQ&UDFRZ3RODQGZHLQYHVWHG
LQZDWHUUHXVHIURPEDFNZDVKLQJ
DQGVWHULOLVDWLRQRIFDUERQOWHUV,QWKH
SDVWZDWHUZDVGLYHUWHGGLUHFWO\LQWRWKH
ZDVWHZDWHUV\VWHP%\FROOHFWLQJWKHZDWHU
LQWKHPDLQZDWHUFROOHFWRUDQGWDQNDQG
Corporate Governance
VHQGLQJLWWRWKHEHJLQQLQJRIWKHZDWHU
WUHDWPHQWSURFHVVDIWHUFKORULQDWLRQ
ZHDUHVDYLQJFXELFPHWUHVRI
ZDWHUDQQXDOO\
Operational water footprint (QHUJ\XVHUDWLRLQSODQWV
Financial Statements
OLWUHOLWUHRISURGXFHG ELOOLRQOLWUHV 0-OLWUHRISURGXFHG
EHYHUDJH EHYHUDJH
3.0 -30% 60 -75% 0.6 0.57 -47%
vs. 2010 51.7 vs. 2004 vs. 2010
2.5 2.30 50 0.5 0.47
2.11 0.44 0.43
2.00 1.93 0.40
2.0 1.86 40 0.4
1.61
0.30
1.5 30 0.3

Swiss Statutory Reporting

1.0 20 18.4 18.4 18.1 17.8 0.2
12.9
0.5 10 0.1

0.0 0 0.0
2010 2014 2015 2016 Target 2020 2004 2014 2015 2016 Target 2020 2010 2014 2015 2016 Target 2020
2017 Goal 2017 Goal 2017 Goal

CO2UDWLRVFRSHVDQG CO2UDWLRVFRSHVDQG /DQGOOZDVWHUDWLR

J&R2OLWUHRISURGXFHG J&R2OLWUHRISURGXFHG JOLWUHRISURGXFHG
EHYHUDJH EHYHUDJH EHYHUDJH
Supplementary Information

90 -50% 600 -25% 6 -90%

78.3 vs. 2010 vs. 2010 vs. 2004
5.0
75 500 5
441
62.6
60 400 378 4
53.7 353 351 345
50.4 48.3 331
45 39.1 300 3

30 200 2

15 100 1 0.76 0.76

0.51 0.50 0.50

0 0 0
2010 2014 2015 2016 Target 2020 2010 2014 2015 2016 Target 2020 2004 2014 2015 2016 Target 2020
2017 Goal 2017 Goal 2017 Goal

COC016_.indb 53 3/16/17 2:34 PM

 Coca-Cola HBC
54 2016 Integrated Annual Report

Financial review

Another year
RIVLJQLFDQW
growth in
margins
DQGSURWV
Michalis Imellos
&KLHI)LQDQFLDO2FHU

FX-neutral revenue growth

+3.0%
&RPSDUDEOHRSHUDWLQJSURW

518m
Comparable EBIT margin
improvement

+90bps
)UHHFDVKRZ

431m

COC016_.indb 54 3/16/17 2:34 PM

 Coca-Cola HBC
2016 Integrated Annual Report 55

Strategic Report
We are pleased to report .H\QDQFLDOLQIRUPDWLRQ

another year of good 2016 2015 FKDQJH
progress in margins, with 9ROXPHPLOOLRQXQLWFDVHV 2,058  
the business developing 1HWVDOHVUHYHQXHPLOOLRQ 6,219  
in line with our 2020 1HWVDOHVUHYHQXHSHUXQLWFDVH 3.02  
);QHXWUDOQHWVDOHVUHYHQXHPLOOLRQ { b b
VWUDWHJLFSODQb

Corporate Governance
);QHXWUDOQHWVDOHVUHYHQXHSHUXQLWFDVH 3.02  
2XUQDQFLDOSHUIRUPDQFH 2SHUDWLQJSURW(%,7PLOOLRQ 506  
UHHFWVWKHbRSHUDWLQJOHYHUDJHZHKDYH &RPSDUDEOH(%,7PLOOLRQ 518  
DFKLHYHGDIWHUVHYHUDO\HDUVRIUHOHQWOHVV (%,7PDUJLQ 8.1  ESV
RSWLPLVDWLRQFDUHIXOFRQWURORIFRVWVDQG &RPSDUDEOH(%,7PDUJLQ 8.3  ESV
HHFWLYHPDQDJHPHQWRIQDQFLDOULVNV
1HWSURWPLOOLRQ 344  
(YLGHQFHRIbRXUVXFFHVVLQFOXGHV
&RPSDUDEOHQHWSURWPLOOLRQ 352  
QHWVDOHVUHYHQXHXSRQDQ); &RPSDUDEOHEDVLFHDUQLQJVSHUVKDUH 0.972  
QHXWUDOEDVLVWDNLQJDFFRXQWRIFXUUHQF\
PRYHPHQWVQHWVDOHVUHYHQXHGHFOLQHG 3HUFHQWDJHFKDQJHVDUHFDOFXODWHGRQSUHFLVHQXPEHUV
E\ %DODQFHVKHHW

Financial Statements
);QHXWUDOUHYHQXHSHUFDVHJUHZLQDOO 2016 2015
million PLOOLRQ
JHRJUDSKLFVHJPHQWVXSRYHUDOO
Assets
YROXPHLQFUHDVHGE\
7RWDOQRQFXUUHQWDVVHWV 4,504 
FRVWHFLHQFLHVUHVXOWHGLQDbEDVLV 7RWDOFXUUHQWDVVHWV 2,061 
SRLQWUHGXFWLRQLQFRPSDUDEOHRSHUDWLQJ
Total assets 6,565 
H[SHQVHVDVSHUFHQWDJHRIQHWVDOHV
Liabilities
UHYHQXH
7RWDOFXUUHQWOLDELOLWLHV 1,968 
FRPSDUDEOH(%,7PDUJLQLQFUHDVHGE\
7RWDOQRQFXUUHQWOLDELOLWLHV 1,727 
bEDVLVSRLQWVWRDQG
Total liabilities 3,695 
FRPSDUDEOH(36LQFUHDVHGE\ Equity

Swiss Statutory Reporting

WRb
2ZQHUVRIWKHSDUHQW 2,866 
,QFRPHVWDWHPHQW 1RQFRQWUROOLQJLQWHUHVWV 5 4
6DOHVYROXPHJURZWKVORZHGGXULQJWKH Total equity 2,870 
\HDUWRDPDUJLQDOLQFUHDVHIROORZLQJD Total equity and liabilities 6,565 
LQFUHDVHLQWKHSULRU\HDU:HH[SHULHQFHG )LJXUHVDUHURXQGHG
YROXPHGHFOLQHLQRXU(VWDEOLVKHGPDUNHWV
VHJPHQWDQGLQFUHDVHVLQRXU'HYHORSLQJ
DQG(PHUJLQJPDUNHWVVHJPHQWV
2QDQ);QHXWUDOEDVLVQHWVDOHVUHYHQXH
LPSURYHGE\FRPSDUHGWRWKH
SULRU\HDU7KHSRVLWLYHUHVXOWVIURPRXU
Supplementary Information

UHYHQXHJURZWKPDQDJHPHQWLQLWLDWLYHV
LQFOXGLQJSULFLQJZHUHPRUHWKDQRVHWE\
XQIDYRXUDEOHIRUHLJQFXUUHQF\PRYHPHQWV
1HWVDOHVUHYHQXHWKHUHIRUHGHFUHDVHGE\
FRPSDUHGWRWKHSULRUb\HDU

COC016_.indb 55 3/16/17 2:34 PM

 Coca-Cola HBC
56 2016 Integrated Annual Report

)LQDQFLDOUHYLHZFRQWLQXHG

:HDFKLHYHGDGHFUHDVHLQFRVWRI Dividend WKHGLVSRVDORIDVVHWVDQGLQFOXGLQJ

JRRGVVROGLQ7KHSRVLWLYHLPSDFWRI SULQFLSDOUHSD\PHQWVRIQDQFHOHDVH
,QOLQHZLWKWKH*URXSVSURJUHVVLYHGLYLGHQG
FRVWHFLHQFLHVDQGWUDQVODWLRQFXUUHQF\ REOLJDWLRQVLQFUHDVHGE\LQWKH\HDU
SROLF\DQGWKH%RDUGVDVVHVVPHQWRI
PRYHPHQWVZHUHSDUWLDOO\RVHWE\WKH
DGYHUVHHHFWRIWUDQVDFWLRQDOFXUUHQF\
PRYHPHQWVZKLOHLQSXWFRVWVUHPDLQHG
IDLUO\VWDEOH
&RPSDUDEOHJURVVSURWPDUJLQDQG
UHSRUWHGJURVVSURWPDUJLQZHUHEURDGO\
VWDEOHLQFRPSDUHGWRWKHSULRU\HDU
&RPSDUDEOHRSHUDWLQJH[SHQVHVKRZHYHU
GHFUHDVHGE\DQGUHSRUWHGRSHUDWLQJ
H[SHQVHVE\LQFRPSDUHGWR
WKHSULRU\HDUPDLQO\UHHFWLQJWKHEHQHWV
RIRXUUHVWUXFWXULQJLQLWLDWLYHVDQGWLJKW
FRVWPDQDJHPHQWDVZHOODVWKHSRVLWLYH
WUDQVODWLRQLPSDFWIURPH[FKDQJH
UDWHPRYHPHQWV
2XUUHYHQXHJURZWKPDQDJHPHQW
SURJUHVVDJDLQVWWKH*URXSVVWUDWHJ\
WKH%RDUGRI'LUHFWRUVKDVSURSRVHGD
GLYLGHQGRISHUVKDUH7KLVLVD
LQFUHDVHIURPSHUVKDUHIRU
7KHGLYLGHQGSD\PHQWZLOOEHVXEMHFWWR
VKDUHKROGHUDSSURYDODWWKH$QQXDO
*HQHUDO0HHWLQJ
%DODQFHVKHHW
7RWDOQRQFXUUHQWDVVHWVGHFUHDVHGLQ
E\PLOOLRQPDLQO\GXHWRWKHLPSDFWRI
IRUHLJQFXUUHQF\WUDQVODWLRQ1HWFXUUHQW
DVVHWVLQFUHDVHGE\PLOOLRQPDLQO\GXH
WRWKHUHSD\PHQWRIWKHPLOOLRQERQG
ZKLFKPDWXUHGLQ1RYHPEHUDQGWKH
FDVKDQGFDVKHTXLYDOHQWVJHQHUDWHGE\WKH
DQGUHSUHVHQWHGRIQHW
VDOHVUHYHQXH,QFDSLWDOH[SHQGLWXUH
DPRXQWHGWRPLOOLRQRIZKLFKZDV
UHODWHGWRUHYHQXHJHQHUDWLQJLQYHVWPHQWV
,QFDSLWDOH[SHQGLWXUHDPRXQWHGWR
PLOOLRQRIZKLFKZDVUHODWHGWR
UHYHQXHJHQHUDWLQJLQYHVWPHQWV
,QIUHHFDVKRZJUHZE\
RUPLOOLRQUHHFWLQJWKHLQFUHDVHG
FDVKIURPRSHUDWLQJDFWLYLWLHVZKLFKZDV
RQO\SDUWLDOO\RVHWE\LQFUHDVHGFDSLWDO
H[SHQGLWXUH
(FRQRPLFYDOXH
(FLHQWXVHRIFDSLWDODQGKLJKHUSURWV
UHVXOWHGLQDQLQFUHDVHLQUHWXUQRQ
LQLWLDWLYHVDQGFRVWHFLHQFLHVDOVRVHUYHG *URXSLQWKH\HDU7KH*URXSVQRQFXUUHQW LQYHVWHGFDSLWDO52,&IURPLQ
WRLPSURYHRXUFRPSDUDEOHRSHUDWLQJ OLDELOLWLHVDOVRLQFUHDVHGE\PLOOLRQ WRLQ$WWKHVDPHWLPHRXU
SURW,QDGGLWLRQORZHUUHVWUXFWXULQJ
FRVWVDQGXQUHDOLVHGFRPPRGLW\KHGJHV
JDLQVDXJPHQWHGWKHJURZWKRIUHSRUWHG
RSHUDWLQJSURW3URWDELOLW\LPSURYHPHQWV
ZHUHRQO\SDUWLDOO\RVHWE\XQIDYRXUDEOH
IRUHLJQFXUUHQF\PRYHPHQWV&RPSDUDEOH
RSHUDWLQJSURWLQFUHDVHGE\LQ
FRPSDUHGWRWKHSULRU\HDUDQGUHSRUWHG
RSHUDWLQJSURWLQFUHDVHGE\b
1HWQDQFHFRVWVGHFUHDVHGE\bPLOOLRQ
GXULQJFRPSDUHGWRWKHSULRU\HDU
SHULRGPDLQO\GXHWRGHFUHDVHGQHWIRUHLJQ
H[FKDQJHORVVHVRQUHPHDVXUHPHQWRI
QDQFHOHDVHV
2QDFRPSDUDEOHEDVLVWKHHHFWLYHWD[
UDWHZDVDSSUR[LPDWHO\IRU
ODUJHO\DVDUHVXOWRIWKHPLOOLRQERQG
LVVXHGLQ0DUFKZKLFKPDWXUHVLQ
1RYHPEHU
&DVKRZ
1HWFDVKIURPRSHUDWLQJDFWLYLWLHVLQFUHDVHG
E\RUPLOOLRQLQFRPSDUHG
WRPDLQO\UHHFWLQJWKHLQFUHDVHG
RSHUDWLQJSURWDELOLW\RQO\SDUWLDOO\RVHWE\
WD[HVSDLGDQGORZHUFDVKJHQHUDWHGE\WKH
GLPLQLVKLQJZRUNLQJFDSLWDOLPSURYHPHQW
&DSLWDOH[SHQGLWXUHQHWRIUHFHLSWVIURP
&DVKRZ
&DVKRZIURPRSHUDWLQJDFWLYLWLHV
ZHLJKWHGDYHUDJHFRVWRIFDSLWDO:$&&
LQFUHDVHGIURPLQWRLQ
UHHFWLQJWKHLQFUHDVHGSROLWLFDODQG
PDFURHFRQRPLFULVNVWKDWDHFWHGPRVWRI
RXUFRXQWULHVLQWKH\HDU$VDUHVXOWRIWKH
52,&RXWSDFLQJWKH:$&&ZHFRQWLQXHGWR
JURZWKHSRVLWLYHHFRQRPLFYDOXHJHQHUDWHG
E\RXURSHUDWLRQV
2016 2015
million PLOOLRQ
763 
FRPSDUHGWRIRU2QDUHSRUWHG 3D\PHQWVIRUSXUFKDVHVRISURSHUW\SODQWDQGHTXLSPHQW (348) 
EDVLV&RFD&ROD+%&VHHFWLYHWD[UDWH
3URFHHGVIURPVDOHVRISURSHUW\SODQWDQGHTXLSPHQW 36 
ZDVDSSUR[LPDWHO\IRUFRPSDUHG
WRIRU2XUHHFWLYHWD[UDWHRQ 3ULQFLSDOUHSD\PHQWVRIQDQFHOHDVHREOLJDWLRQV (20) 
DbUHSRUWHGEDVLVZDVSRVLWLYHO\LPSDFWHGLQ )UHHFDVKRZ 431 412
E\FHUWDLQQRQUHFXUULQJLWHPV7KH )LJXUHVDUHURXQGHG
*URXSVHHFWLYHWD[UDWHYDULHVGHSHQGLQJ
RQWKHPL[RIWD[DEOHSURWVE\WHUULWRU\WKH
QRQGHGXFWLELOLW\RIFHUWDLQH[SHQVHVQRQ
WD[DEOHLQFRPHDQGRWKHURQHRWD[bLWHPV
DFURVVLWVWHUULWRULHV
,QFRPSDUDEOHQHWSURWLQFUHDVHGE\
DQGUHSRUWHGQHWSURWLQFUHDVHGE\
FRPSDUHGWRWKHSULRU\HDU7KHVH
LPSURYHPHQWVZHUHPDLQO\GULYHQE\WKH
KLJKHURSHUDWLQJSURWDELOLW\RQO\SDUWLDOO\
RVHWE\LQFUHDVHGWD[HV

COC016_.indb 56 3/16/17 2:34 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

)LQDQFLDOULVNPDQDJHPHQW
*LYHQWKHYRODWLOLW\LQFXUUHQF\DQG
FRPPRGLW\PDUNHWVSURDFWLYHO\PDQDJLQJ
QDQFLDOULVNVZDVFULWLFDOWKURXJKRXWWKH
\HDU:HH[SHULHQFHGVLJQLFDQWDGYHUVH
LPSDFWGXHWRRXUIRUHLJQFXUUHQF\
H[SRVXUHVDULVLQJIURPFKDQJHVLQ
2XUNH\UDZPDWHULDOVVXFKDV3(7
DOXPLQXPDQGVXJDUDOVRH[SHULHQFHG
VLJQLFDQWSULFHYRODWLOLW\LQ:HVDZ
%UHQWSULFHVUHFRYHULQJIURPWKHLUDOOWLPH
ORZVIROORZLQJDPXOWL\HDUSHULRGRIGHFOLQH
EXW3(7GHVSLWHEHLQJDQRLOE\SURGXFW
GLGQRWH[SHULHQFHWKHH[WUHPH%UHQW
YRODWLOLW\DVGHPDQGDQGVXSSO\G\QDPLFV
Strategic Report
,QSULQFLSOHZHGRQRWNHHSH[FHVVFDVKLQ
DQ\RIRXUFRXQWULHVH[FHSWIRUWKHRQHV
ZLWKYDULRXVGHJUHHVRIFDSLWDOFRQWUROV
:HKDYHDPXOWLFXUUHQF\]HUREDODQFH
DXWRPDWHGSRROVWUXFWXUHLQSODFHIRU
RIbRXUFRXQWULHV
)XQGWUDQVIHUUHVWULFWLRQVH[LVWLQ%HODUXV

H[FKDQJHUDWHVEHWZHHQWKH(XURWKH86
GROODUDQGWKHFXUUHQFLHVRIRXUQRQ(XUR
FRXQWULHV:HLQFXUUHGDWRWDOQHJDWLYH
LPSDFWRIPLOOLRQDWRSHUDWLQJSURW
OHYHOGXHWRRXUIRUHLJQFXUUHQF\H[SRVXUHV
RIWKLVLPSDFWFDQEHDWWULEXWHGWR
WUDQVDFWLRQH[SRVXUHVDULVLQJPDLQO\IURP
UDZPDWHULDOVSXUFKDVHV
:HDFWLYHO\KHGJHWUDQVDFWLRQH[SRVXUHV
LQHDFKIRUHLJQFXUUHQF\ZLWKDQDYDLODEOH
DFWLYHKHGJLQJPDUNHWRQDUROOLQJ
SURYLGHGDVPRRWKHUSULFHHYROXWLRQ
LQWKH\HDU:HZHUHSURWHFWHGDJDLQVW
XQH[SHFWHGXFWXDWLRQVWKURXJKSUHEX\V
DQGSULFHSUH[LQJV2QWKHRWKHUKDQG
DOXPLQXPH[SHULHQFHGXSVLGHYRODWLOLW\LQ
EXWLQDUDWKHUVPRRWKIDVKLRQ2XU
KHGJHGSRVLWLRQVKHOSHGXVWRPLWLJDWHWKH
XQGHUO\LQJSULFHULVN:RUOGVXJDUKDVEHHQ
WKHPRVWYRODWLOHRIDOONH\UDZPDWHULDOVZLWK
SULFHVGRXEOLQJWKURXJKWKH\HDU:HZHUH
KHGJHGDQGKDGORFNHGLQJRRGSULFHVZKLFK
Corporate Governance
*UHHFH6HUELDDQG8NUDLQHEXWWKHVH
UHVWULFWLRQVGRQRWKDYHDPDWHULDOLPSDFW
RQRXUOLTXLGLW\DVWKHDPRXQWRIFDVKDQG
FDVKHTXLYDOHQWVZHKROGLQWKHVHFRXQWULHV
LVJHQHUDOO\UHWDLQHGIRUFDSLWDOH[SHQGLWXUH
ZRUNLQJFDSLWDODQGGLYLGHQGGLVWULEXWLRQ
SXUSRVHV)XQGWUDQVIHUUHVWULFWLRQVDOVR
H[LVWLQ1LJHULDDQGWKHWLJKWOLTXLGLW\LQWKH
ORFDOIRUHLJQH[FKDQJHPDUNHWLQ
VLJQLFDQWO\OLPLWHGRXUDELOLW\WRH[HFXWH
SD\PHQWVLQIRUHLJQFXUUHQF\OHDGLQJWRD
WHPSRUDULO\KLJK1LJHULDQ1DLUDFDVKEDODQFH

Financial Statements
PRQWKEDVLV7KH1LJHULDQQDLUD UHVXOWHGLQDSRVLWLYHSULFHLPSDFW2YHUDOO DWWKHHQGRIWKH\HDU
H[SHULHQFHGGRXEOHGLJLWGHYDOXDWLRQ LQSXWFRVWSHUFDVHRQDQ);QHXWUDOEDVLV
DJDLQVWWKH(XURLQWKHVHFRQGKDOIRI-XQH ZDVDW\HDURQ\HDU
:HPLWLJDWHGDVLJQLFDQWSDUWRIWKHLPSDFW
2XUJHQHUDOSROLF\LVWRUHWDLQDPLQLPXP
RIWKLVGHYDOXDWLRQE\SUHEX\LQJFHUWDLQNH\
DPRXQWRIOLTXLGLW\UHVHUYHVLQWKHIRUPRI
UDZPDWHULDOVDWWKHEHJLQQLQJRIWKH\HDU
FDVKDQGFDVKHTXLYDOHQWVRQRXUEDODQFH
7KH5XVVLDQURXEOHGHSUHFLDWHGDJDLQVWWKH
VKHHWZKLOHPDLQWDLQLQJOLTXLGLW\SRWHQWLDO
(XURWRLWVZHDNHVWOHYHODWWKHEHJLQQLQJRI
LQWKHIRUPRIDQXQXVHGFRPPLWWHG
)HEUXDU\EHIRUHDSSUHFLDWLQJVLJQLFDQWO\
PLOOLRQUHYROYLQJFUHGLWIDFLOLW\:H
DIWHUWKHUVWTXDUWHURI2XUDFWLYH
LQYHVWRXUH[FHVVFDVKDW*URXSOHYHO
KHGJLQJVWUDWHJ\WKURXJKGHULYDWLYHV
SULPDULO\LQVKRUWWHUPWLPHGHSRVLWV
SURYLGHGVLJQLFDQWSURWHFWLRQDJDLQVW

Swiss Statutory Reporting

WKH5RXEOHGXULQJWKHGHSUHFLDWLRQSHULRG
VHFXULQJEHWWHUUDWHVYHUVXVWKHPDUNHW
,QWKH1LJHULDQQDLUDGHYDOXHGE\
DJDLQVWWKH(XURZKHUHDVWKH5XVVLDQ
URXEOHDSSUHFLDWHGE\DQGWKHVH
WZRFXUUHQFLHVWRJHWKHUDFFRXQWHGIRU
DSSUR[LPDWHO\WKUHHTXDUWHUVRIRXUWRWDO
IRUHLJQFXUUHQF\LPSDFW
Supplementary Information

COC016_.indb 57 3/16/17 2:34 PM

  Coca-Cola HBC
2016 Integrated Annual Report
)LQDQFLDOUHYLHZFRQWLQXHG
Borrowings
2XUPHGLXPWRORQJWHUPDLPLVWR
PDLQWDLQDUDWLRRIQHWGHEWWRFRPSDUDEOH
(%,7'$LQWKHUDQJHRIWRWLPHVDQG
LQZHHQGHGWKH\HDUZLWKDUDWLRRI
WLPHV
2XUIXQGLQJVWUDWHJ\LQWKHGHEWFDSLWDO
PDUNHWVLQYROYHVUDLVLQJQDQFLQJWKURXJK
RXUZKROO\RZQHG'XWFKQDQFLQJ
VXEVLGLDU\&RFD&ROD+%&)LQDQFH%9
H[FHSWLQWKHFDVHRIVXEVLGLDULHVZLWKMRLQW
FRQWURORUFRXQWULHVZKHUHFHUWDLQOHJDO
RUWD[UHVWULFWLRQVDSSO\,QVXFKFDVHV
QDQFLQJDWORZHUOHYHOVLQWKHRUJDQLVDWLRQ
PD\EHFRQVLGHUHG:HXVHRXUELOOLRQ
(XURSHDQ0HGLXP7HUP1RWHSURJUDPPH
DQGRXUELOOLRQ*OREDO&RPPHUFLDO3DSHU
SURJUDPPHDVWKHPDLQEDVLVIRURXU
QDQFLQJ:HHQGHDYRXUWRPDLQWDLQRXU
SUHVHQFHDQGSUROHLQWKHLQWHUQDWLRQDO
FDSLWDOPDUNHWVDQGZKHUHSRVVLEOHWR
EURDGHQRXULQYHVWRUEDVH:HDOVRVHHNWR
PDLQWDLQDZHOOEDODQFHGUHGHPSWLRQSUROH
,QHDUO\ZHLVVXHGDPLOOLRQ
ERQGUHSD\DEOHLQ1RYHPEHUDWDQ
HHFWLYHLQWHUHVWUDWHRI7KLVZDV
XWLOLVHGPDLQO\LQWKHUHQDQFLQJRIWKH
PLOOLRQERQGPDWXULQJLQ1RYHPEHU
ZKLFKZDVUHSDLGLQWZRWUDQFKHV7KH
UVWSDUWPLOOLRQZDVUHSDLGLQ0DUFK
GXULQJWKHWHQGHURHUSURFHVVDQG
WKHUHPDLQLQJDPRXQWPLOOLRQZDV
UHSDLGDWPDWXULW\LQ1RYHPEHU
,Q-XQHZHH[HUFLVHGRXURSWLRQWR
H[WHQGWKHPDWXULW\RIRXUPLOOLRQ
V\QGLFDWHGUHYROYLQJFUHGLWIDFLOLW\DQGWKH
EDQNVDJUHHGWRH[WHQGWKHIDFLOLW\IRURQH
PRUH\HDUXQWLO-XQH:HKDYH
QHYHUGUDZQGRZQRQWKLVIDFLOLW\ZKLFKFDQ
EHXVHGIRUJHQHUDOFRUSRUDWHSXUSRVHVDQG
FDUULHVDRDWLQJLQWHUHVWUDWHRYHU(85,%25
DQG/,%25
%RUURZLQJVWUXFWXUH
/RRNLQJDKHDG 7D[FRQWULEXWLRQ
:HDUHYHU\SOHDVHGZLWKRXUSHUIRUPDQFHLQ
E\bFDWHJRU\1
:HGHOLYHUHGDVHFRQG\HDURIVWURQJ
JURZWKLQSURWDELOLW\DQGWKHWUDMHFWRU\RI
WKHEXVLQHVVUHPDLQVLQOLQHZLWKWKHSODQV
ZHRXWOLQHGDWRXU,QYHVWRU'D\ODVW-XQH
/RRNLQJDWZHH[SHFWYROXPHWR
FRQWLQXHWRJURZLQWKH'HYHORSLQJDQG
(PHUJLQJVHJPHQWVDQGWRVWDELOLVH
LQWKH(VWDEOLVKHGVHJPHQW&XUUHQF\
GHSUHFLDWLRQDQGWKHDVVRFLDWHGLQDWLRQ
ZLOOUHPDLQDNH\IHDWXUHLQVRPHRIRXU
Corporate income tax: 40%
PDUNHWVDQGZHVHHLQDWLRQSLFNLQJXS Withholding tax: 1%
LQDQXPEHURIPDUNHWV2XULQLWLDWLYHV Payroll taxes: 50%
WRLPSURYHSURGXFWPL[ZLOOFRQWLQXH VAT (cost): 2%
Environmental taxes:
DQGZHLQWHQGWRFRQWLQXHZLWKSODQQHG
Other taxes: 7%
SULFLQJDFWLRQVLQPDUNHWVLPSDFWHG
E\IRUHLJQFXUUHQF\GHSUHFLDWLRQDQG
PDUNHWVZKHUHGHDWLRQDU\SUHVVXUHV 7D[HVZHFRQWULEXWHWR
DUHDEDWLQJ:HH[SHFWRXUSODQVWR RXUFRPPXQLWLHV
DJDLQGHOLYHUDVXEVWDQWLDOLQFUHDVHLQ
:HFUHDWHZHDOWKLQWKHFRXQWULHVZKHUH
);QHXWUDOQHWVDOHVUHYHQXHSHUFDVH
ZHRSHUDWHDQGSD\WD[HVLQWKHVH
$WFXUUHQWFRPPRGLW\SULFHOHYHOVLQSXW FRXQWULHVZKLFKLQGLUHFWO\VXSSRUWRXU
FRVWVDUHH[SHFWHGWREHDKLJKVLQJOH FRPPXQLWLHV7KHVHbWD[HVLQFOXGH
GLJLWKHDGZLQGLQWKH\HDUPDLQO\GULYHQE\ FRUSRUDWHLQFRPHWD[FDOFXODWHGRQ
UHVLQDQGKLJKHURLOSULFHVDOWKRXJKWDNLQJ HDFKFRXQWU\VWD[DEOHSURWHPSOR\HU
LQWRDFFRXQWRXUKHGJHGSRVLWLRQVDQG WD[HVDQGVRFLDOVHFXULW\FRQWULEXWLRQV
FXUUHQWVSRWUDWHVWKHDGYHUVHLPSDFWRQ QHW9$7FRVWDQGRWKHUWD[HVWKDWDUH
RXURSHUDWLQJSURWIURPIRUHLJQFXUUHQF\ UHHFWHGDVRSHUDWLQJH[SHQVHV([FLVH
LVH[SHFWHGWRDEDWHWROHYHOVRIDURXQG WD[HVDQGWD[HVERUQHE\HPSOR\HHVDUH
PLOOLRQIRUWKHIXOO\HDUb QRWLQFOXGHG
2XUDFWLRQVLQFRVWPDQDJHPHQWDQGWKH  ,QDFFRUGDQFHZLWK,)56
HHFWRIWRSOLQHRSHUDWLQJOHYHUDJHDUH
H[SHFWHGWRUHVXOWLQDIXUWKHUUHGXFWLRQ
LQRSHUDWLQJH[SHQVHVDVDSHUFHQWDJHRI
QHWVDOHVUHYHQXHLQVXSSRUWLQJ(%,7
PDUJLQJURZWK
,Q1LJHULDWKHFRQWLQXHGSUHVVXUHRQ
WKHHFRQRP\DQGWKHULVNRIDIXUWKHU
GHYDOXDWLRQRIWKH1LJHULDQQDLUDDGGWRWKH
H[LVWLQJFKDOOHQJHV:HDUHFRQWLQXRXVO\
PRQLWRULQJDQGDVVHVVLQJWKHFRQGLWLRQV
LQWKLVPDUNHWDVZHOODVLQ5XVVLDZKHUH
PLOOLRQ ZHVHHVRPHHDUO\VLJQVRIVWDELOLVDWLRQ
LQRUGHUWRHQVXUHWKDWWLPHO\DFWLRQVDQG
LQLWLDWLYHVDUHLQSODFHWRPLQLPLVHSRWHQWLDO
DGYHUVHLPSDFWRQRXUSHUIRUPDQFH
7KHPDFURHFRQRPLFDQGQDQFLDO
HQYLURQPHQWLQ*UHHFHDOVRUHPDLQV
IUDJLOHDQGPD\IXUWKHULPSDFWFRQVXPHUV
GLVSRVDEOHLQFRPHV

Bonds issued: 1,392

Commercial paper: 108
Finance leases: 84
Other: 40

COC016_.indb 58 3/16/17 2:34 PM


Viability Statement
1. Business model
DQGbSURVSHFWV
Our business model and strategy, as
outlined on pages 8, 9, 12 & 13 of this report,
constitute the factors for underpinning
the understanding and evaluation of
our prospects. Our strong sales and
execution capabilities, attractive geographic
diversity, market leadership, global brands,
and diverse beverage portfolio are the
fundamentals of the Groups business
model. Our strategy is being adapted over
time in order to sustainably create value for
our shareholders, suppliers, employees, and
the customers and communities we serve.
The Groups business model has proven
WREHHHFWLYHDQGUHVLOLHQWHYHQGXULQJ
the recent challenging market conditions.
Our Board has historically applied a prudent
approach to the Groups decisions relating
to major projects and investments. From
2010 to 2016, we generated free cash
RZRIDQDYHUDJHRIPLOOLRQ
The Board considers that our diverse
geographic footprint, including exposure
to emerging markets with low per capita
consumption, and our proven strategy
in combination with our leading market
SRVLWLRQRHUVLJQLFDQWRSSRUWXQLW\IRU
future growth.
In making this statement the Audit and
Risk Committee, and the Board as a
whole, carried out a robust assessment
of the Groups risks that could threaten
our business model, future performance,
solvency or liquidity.
COC016_.indb 59
7KHEXVLQHVVSODQQLQJ
SURFHVVNH\DVVXPSWLRQV
DQGYLDELOLW\SHULRG
The Group has a well-established strategic
business planning process which has
formed the basis of the Boards quantitative
assessment of the Groups viability. The
EXVLQHVVSODQUHHFWVRXUFXUUHQWVWUDWHJ\
RYHUDYH\HDUUROOLQJSHULRG7KHQDQFLDO
projections included in the plan are based on
the following key assumptions:
key macroeconomic data, that could
impact our consumers disposable
income and consequently our sales
volume and revenues;
key raw material costs;
foreign currency rates;
spending for production overheads and
operating expenses;
working capital levels; and
capital expenditure.
The Board believes that a viability period
RIYH\HDUVLVWKHPRVWDSSURSULDWHDVLW
aligns with the Groups strategic business
planning cycle and is also consistent
with the potential impact of principal
risks as disclosed on pages 16-21, the
*URXSVGHEWSUROHDQGRXULPSDLUPHQW
review process, where goodwill and
LQGHQLWHOLYHGbLQWDQJLEOHDVVHWVDUH
WHVWHGbEDVHGRQbYH\HDUIRUHFDVWV
Coca-Cola HBC
2016 Integrated Annual Report 
Strategic Report
$VVHVVPHQWRIYLDELOLW\
From a qualitative perspective, we
analysed the output of the Enterprise
Risk Management, Business Planning and
Liquidity Management internal processes, to
ensure that the risks to the Groups viability
are understood and managed. The Board
Corporate Governance
has concluded that the Groups processes
continue to provide a comprehensive
IUDPHZRUNWKDWHHFWLYHO\VXSSRUWVWKH
operational and strategic objectives of
the Group and provides a robust basis
IRUDVVHVVPHQWDQGFRQUPDWLRQRIWKH
Companys ability to continue in operation
and meet its obligations as they fall due
RYHUWKHSHULRGRIDVVHVVPHQWb
Supporting the qualitative assessment was
a quantitative analysis performed through
Financial Statements
the strategic business plan, including but
not limited to, the Groups ability to
generate cash.
We have continued to stress test the
plan against several severe but plausible
downside scenarios linked to certain
principal risks including declining consumer
demand, channel mix and foreign exchange.
A combination of the following scenarios
was modelled: lower estimates for sales
volumes and revenues, more adverse
foreign currency rates and higher raw
Swiss Statutory Reporting
material costs. Our stress testing showed
that due to the stable cash generation of
our business, the Group would be able to
withstand the impact of these scenarios
RFFXUULQJRYHUWKHSHULRGRIWKHQDQFLDO
forecasts by making adjustments, if
required, to its operating plans within the
normal course of business. Following the
above the Board has concluded that the
*URXSLVZHOOSRVLWLRQHGWRHHFWLYHO\
PDQDJHLWVQDQFLDORSHUDWLRQDODQG
Supplementary Information
strategic risks.
9LDELOLW\6WDWHPHQW
Based on our assessment of prospects and
viability as outlined above, the Directors
FRQUPWKDWWKH\KDYHDUHDVRQDEOH
expectation that the Group will be able to
continue operating and meet its liabilities
DVWKH\IDOOGXHRYHUWKHYH\HDUSHULRG
ending 31 December 2021.
3/16/17 2:34 PM
 Coca-Cola HBC
60 2016 Integrated Annual Report

Board of Directors

Unrivalled experience in
our leadership team

1 2 8

3 4 5

6 7

COC016_.indb 60 3/16/17 2:34 PM


2016 Integrated Annual Report
9 10 11
1. Anastassis G. David
Non-Executive Chairman
2. Robert Ryan Rudolph
Non-Executive Director
3. William W. (Bill) Douglas III
Independent non-Executive
Director
4. Reto Francioni
Senior Independent non-Executive
Director
5. John P. Sechi
Independent non-Executive
Director
13 6. Dimitris Lois
&KLHI([HFXWLYH2FHU
7. Olusola (Sola) David-Borha
Independent non-Executive
Director
COC016_.indb 61
Coca-Cola HBC
61
Strategic Report
Corporate Governance
Financial Statements
12
Swiss Statutory Reporting
8. Ahmet C. Bozer
Non-Executive Director
9. Anastasios I. Leventis
Non-Executive Director
Supplementary Information
10. Alexandra Papalexopoulou
Independent non-Executive
Director
11. Antonio DAmato
Independent non-Executive
Director
12. Jos Octavio Reyes
Non-Executive Director
13. Christo Leventis
Non-Executive Director
3/16/17 2:35 PM
 Coca-Cola HBC
62 2016 Integrated Annual Report

Board of Directors continued

Anastassis G. David Antonio DAmato N R

Non-Executive Chairman
Appointment: Mr. Anastassis David was appointed Chairman of the Board
of Directors of Coca-Cola HBC on 27 January 2016. He joined the Board of
Coca-Cola HBC as a non-Executive Director in 2006 and was appointed Vice
Chairman in 2014.
Independent non-Executive Director
Appointment: Mr. Antonio DAmato was appointed to the Board of Directors
of Coca-Cola HBC in 2002.
Skills and experience: Mr. Antonio DAmato began his business career
in 1979 with Cartoprint in Milan, part of the Seda International Packaging
Skills and experience: Mr. David brings to his role more than 20 years
experience as an investor and non-executive director in the beverage
LQGXVWU\b0U'DYLGLVDOVRDIRUPHU&KDLUPDQRI1DYLRV&RUSRUDWLRQb+HKROGV
a BA in History from Tufts University.
External appointments:b0U'DYLGLVDFWLYHLQWKHLQWHUQDWLRQDOFRPPXQLW\
DQGVHUYHVRQWKH,QWHUQDWLRQDO%RDUGRIb$GYLVRUVRI7XIWV8QLYHUVLW\DQGRQ
*URXS6S$IRUPHUO\WKH)LQVHGD*URXSDOHDGLQJ(XURSHDQFRPSDQ\LQ
the production of food packaging materials. He was employed in various
FDSDFLWLHVDQGEHFDPHSUHVLGHQWRI6HGD,QWHUQDWLRQDO3DFNDJLQJ*URXS6S$
LQb0U'$PDWRZDVSUHYLRXVO\SUHVLGHQWDQGDPHPEHURIWKHERDUG
RIGLUHFWRUVRI&RQQGXVWULDWKH&RQIHGHUDWLRQRI,WDOLDQ,QGXVWU\,Q$XJXVW
2000, Mr. DAmato was appointed vice-president of the Union of Industrial
the Advisory Board of the Fares Center at Fletcher School. He serves as a DQG(PSOR\HUV&RQIHGHUDWLRQVRI(XURSH81,&()URPWR0U
PHPEHURQWKHERDUGRIGLUHFWRUVRIb$HJHDQ$LUOLQHV6$DQG$;$,QVXUDQFH DAmato was also a member of the Italian National Council for Economy and
6$b0U'DYLGLVDPHPEHURIWKH%RDUGRI7UXVWHHVRI&ROOHJH<HDULQ$WKHQV
and is a member of the Executive Committee of the Cyprus Union
of Shipowners.
Dimitris Lois
&KLHI([HFXWLYH2FHU
Appointment:b0U'LPLWULV/RLVbZDVDSSRLQWHG&KLHI2SHUDWLQJ2FHULQ
DQG&KLHI([HFXWLYH2FHULQ
Skills and experience: 0U'LPLWULV/RLVEHJDQKLVFDUHHULQDW*UHFLDQ
Magnesite S.A., where he held various managerial positions including that of
business development manager. He joined Frigoglass S.A.I.C. in 1997 and
after serving in various international positions he was appointed managing
GLUHFWRULQ$XJXVW0U/RLVMRLQHGWKH*URXSDV5HJLRQ'LUHFWRULQ
He holds an MS in Chemical Engineering from Northeastern University and a
BS in Chemical Engineering from Illinois Institute of Technology.
External appointments:b0U/RLVLVDPHPEHURIWKH%RDUGRIWKH6ZLVV
/DERXU&1(/
External appointments: ,Q-XO\KHEHFDPHSUHVLGHQWRIWKH/8,66
University in Rome, a leading private Italian university.
Olusola (Sola) David-Borha A
Independent non-Executive Director
Appointment:0UV'DYLG%RUKDZDVbDSSRLQWHGWRWKH%RDUGRI'LUHFWRUVRI
&RFD&ROD+%&LQ
Skills and experience:b0UV'DYLG%RUKDZDV&KLHI([HFXWLYH2FHU
RIb6WDQELF,%7&+ROGLQJVSOFDIXOOVHUYLFHQDQFLDOVHUYLFHVJURXSZLWK
subsidiaries in commercial banking, investment banking, pension and non-
pension asset management and stockbroking. Stanbic IBTC Holdings is listed
on the Nigerian Stock Exchange. Prior to this appointment, Mrs. David-Borha
served as Chief Executive of Stanbic IBTC Bank from May 2011 to November
6KHDOVRVHUYHGDV'HSXW\&KLHI([HFXWLYH2FHURI6WDQELF,%7&
Bank and Head of Investment Banking Coverage Africa (excluding South
American Chamber of Commerce and UNESDA. $IULFD6WDQELF,%7&+ROGLQJVLVDPHPEHURIWKH6WDQGDUG%DQNJURXSZKLFK
in 2007, acquired a leading investment bank in Nigeria, IBTC Chartered Bank
Ahmet C. Bozer plc, where Mrs. David-Borha worked as an Executive Director prior to the
Non-Executive Director PHUJHU%HWZHHQDQG0UV'DYLG%RUKDZRUNHGLQWKHFUHGLW
Appointment: Mr. Ahmet Bozer was appointed to the Board of Directors of DQGPDUNHWLQJGHSDUWPHQWRI1$/0HUFKDQW%DQN3/&0UV'DYLG%RUKD
Coca-Cola HBC on 21 June 2016. KROGVDUVWFODVVGHJUHHLQ(FRQRPLFVDQGREWDLQHGDQ0%$GHJUHHIURP
Skills and experience: Mr. Bozer retired from the position of Executive Vice Manchester Business School. Her executive education experience includes
President of The Coca-Cola Company in March 2016. Mr Bozer started his the Advanced Management Programme of the Harvard Business School.
SURIHVVLRQDOFDUHHULQDW&RRSHUV /\EUDQG&3$EDVHGLQ$WODQWD External appointments:0UV2OXVROD6ROD'DYLG%RUKDLVWKH&KLHI
serving in a variety of audit, consultancy and management roles and moved ([HFXWLYHRI6WDQGDUG%DQNV$IULFDQEXVLQHVVH[FOXGLQJ6RXWK$IULFDb0UV
to The Coca-Cola Company in 1990 as Financial Controls Manager. Four 'DYLG%RUKDbLVDQ+RQRUDU\)HOORZRIWKH&KDUWHUHG,QVWLWXWHRI%DQNHUVRI
years later, he assumed a leadership role at Coca-Cola Bottlers of Turkey 1LJHULD&,%1DQGVHUYHVDVQRQH[HFXWLYHGLUHFWRURQWKH%RDUGRI&5
QRZb&RFD&ROD,FHFHNEHFRPLQJLWV0DQDJLQJ'LUHFWRULQ+HUHWXUQHG
to The Coca-Cola Company in 2000 as Division President, Eurasia, and
quickly progressed to the role of Division President, Eurasia and the Middle
(DVW,QKHEHFDPH*URXS3UHVLGHQW(XUDVLDDVVXPLQJDGGLWLRQDO
responsibility for the India and South West Asia Division, and was soon named
*URXS3UHVLGHQWDQG&KLHI2SHUDWLQJ2FHU(XUDVLDDQG$IULFD*URXS$V
President of Coca-Cola International, he had responsibility for operations
LQPRUHWKDQFRXQWULHVDQGWHUULWRULHVb0U%R]HUHDUQHGD%DFKHORUV
degree in Management from the Middle East Technical University, Ankara,
7XUNH\DQGD0DVWHUVGHJUHHLQ%XVLQHVV,QIRUPDWLRQ6\VWHPVIURP*HRUJLD
State University.
External appointments:b0U%R]HUFKDLUVVHYHUDOEXVLQHVVFRXQFLOVLQYDULRXV
countries, serves as a Board member for the Coca-Cola Foundation and
7KHb&RFD&ROD7XUNH\/LIH3OXV)RXQGDWLRQLVRQWKH%RDUGRI$GYLVRUVIRU
5RELQVRQ&ROOHJHRI%XVLQHVVDW*HRUJLD6WDWH8QLYHUVLW\DQGLVDIRUPHU
member of The Turkish Educational Volunteers Foundation.
COC016_.indb 62
Services Credit Bureau plc and the University of Ibadan Business School,
amongst others. She is also the Vice Chairman of the board of the Nigerian
(FRQRPLF6XPPLW*URXS
William W. (Bill) Douglas III A
Independent non-Executive Director
Appointment: Mr. Bill Douglas was appointed to the Board of Directors of
&RFD&ROD+%&RQ-XQHb
Skills and experience: Mr. Bill Douglas is a former Vice President of
&RFD&ROD(QWHUSULVHVDSRVLWLRQLQZKLFKKHVHUYHGIURPb-XO\bXQWLOKLV
retirement in June 2016. Mr. Douglas has held various positions within the
&RFD&ROD6\VWHPVLQFH,QKHZDVDSSRLQWHG'LYLVLRQ)LQDQFH
0DQDJHUIRUWKH1RUGLF 1RUWKHUQ(XUDVLD'LYLVLRQRI7KH&RFD&ROD
Company. Mr. Douglas moved to Atlanta in 1994 as Executive Assistant
WRWKH3UHVLGHQWRI7KH&RFD&ROD&RPSDQ\V*UHDWHU(XURSH*URXS
,Q0U'RXJODVEHFDPH1RUGLF5HJLRQ0DQDJHU,QKHZDV
appointed Controller of Coca-Cola Beverages plc. From 2000 until 2004,
0U'RXJODVVHUYHGDV&KLHI)LQDQFLDO2FHURI&RFD&ROD+%&+HMRLQHG
Coca-Cola Enterprises in 2004 when he was appointed Vice President,
&RQWUROOHUDQG3ULQFLSDO$FFRXQWLQJ2FHU+HZDVDSSRLQWHG6HQLRU9LFH
3UHVLGHQWDQG&KLHI)LQDQFLDO2FHULQDQG([HFXWLYH9LFH3UHVLGHQW
DQG&KLHI)LQDQFLDO2FHURI&RFD&ROD(QWHUSULVHVLQ)URPWR
0U'RXJODVZDVWKH([HFXWLYH9LFH3UHVLGHQW6XSSO\&KDLQ%HIRUH
MRLQLQJWKH&RFD&ROD6\VWHP0U'RXJODVZDVDVVRFLDWHGZLWK(UQVW 
:KLQQH\DQLQWHUQDWLRQDODFFRXQWLQJUP+HUHFHLYHGKLVXQGHUJUDGXDWH
GHJUHHIURPWKH-07XOO6FKRRORI$FFRXQWLQJDWWKH8QLYHUVLW\RI*HRUJLD
External appointments:b0U'RXJODVLVDPHPEHURIWKH%RDUGRI'LUHFWRUV
DQGFKDLUPDQRIWKH$XGLW&RPPLWWHHRI6LWH2QH/DQGVFDSH6XSSO\,QF
+HLVDOVR9LFH&KDLUPDQRIWKH8QLYHUVLW\RI*HRUJLD)RXQGDWLRQ
3/16/17 2:35 PM

Reto Francioni R N
Senior Independent Non-Executive Director
Appointment:b0U)UDQFLRQLZDVDSSRLQWHGWRWKH%RDUGRI'LUHFWRUVRI
Coca-Cola HBC on 21 June 2016.
Skills and experience:b0U)UDQFLRQLKDVEHHQD3URIHVVRURIDSSOLHGFDSLWDO
markets theory at the University of Basel since 2006 and is the author of
VHYHUDOKLJKO\UHVSHFWHGERRNVRQFDSLWDOPDUNHWLVVXHV)URPXQWLO
0U)UDQFLRQLZDV&KLHI([HFXWLYH2FHURI'HXWVFKH%UVH$*DQG
IURPXQWLOKHVHUYHGDV&KDLUPDQRIWKH6XSHUYLVRU\%RDUGDQG
3UHVLGHQWRIWKH6:;*URXSZKLFKRZQVWKH6ZLVV6WRFN([FKDQJHDQGKDV
holdings in other exchanges. Between 2000 and 2002, Mr. Francioni was
&R&KLHI([HFXWLYH2FHUDQG6SRNHVPDQIRUWKH%RDUGRI'LUHFWRUVRI
&RQVRUV$*%HWZHHQDQGKHKHOGYDULRXVPDQDJHPHQWSRVLWLRQV
DW'HXWVFKH%UVH$*LQFOXGLQJWKDWRI'HSXW\&KLHI([HFXWLYH2FHU
)URPXQWLO0U)UDQFLRQLZDVDQ$GMXQFW3URIHVVRURI(FRQRPLFV
and Finance at Zicklin School of Business, part of the City University of New
<RUNb+HHDUQHGKLV'RFWRUDWHRI/DZDWWKH8QLYHUVLW\RI=XULFK
External appointments: Mr. Francioni serves as a member of the Board of
'LUHFWRUVRI8%6*URXSDVZHOODVWKH&KDLUPDQRIWKH6XSHUYLVRU\%RDUGRI
Swiss International Airlines.
Anastasios I. Leventis SR
Non-Executive Director
Appointment: 0U$QDVWDVLRV/HYHQWLVUVWMRLQHGWKH%RDUGRI'LUHFWRUVRI
Coca-Cola HBC in 2014.
Skills and experience: 0U/HYHQWLVKROGVD%$LQ&ODVVLFVIURPWKH8QLYHUVLW\
RI([HWHUDQGDQ0%$IURP1HZ<RUN8QLYHUVLW\V/HRQDUG6WHUQ6FKRRO
of Business.
External appointments:0U$QDVWDVLRV/HYHQWLVVHUYHVDVD'LUHFWRURIWKH
/HYHQWLV*URXSDGLYHUVLHGLQWHUQDWLRQDOEXVLQHVVJURXSDQGDVD7UXVWHH
RIbWKH/HYHQWLV)RXQGDWLRQ,QDGGLWLRQ0U/HYHQWLVLVD'LUHFWRURI$OSKHXV
*URXS/LPLWHGDSULYDWHDVVHWPDQDJHPHQWFRPSDQ\PDQDJLQJDVVHWVRI
SULYDWHFOLHQWVDQGFKDULWDEOHIRXQGDWLRQV0U/HYHQWLVLV9LFH3UHVLGHQWRIWKH
Council of the University of Cyprus, a member of the Board of Overseers of the
*HQQDGLXV/LEUDU\LQ$WKHQVDQGDPHPEHURIWKH%RDUGRIWKH:RUOG:LOGOLIH
)XQGLQ*UHHFHb
Christo Leventis
Non-Executive Director
Appointment: 0U&KULVWR/HYHQWLVZDVDSSRLQWHGWRWKH%RDUGRI'LUHFWRUVRI
&RFD&ROD+%&bLQ
Skills and experience:0U&KULVWR/HYHQWLVZRUNHGDVDQ,QYHVWPHQW
Analyst with Credit Suisse Asset Management from 1994 to 1999. In 2001,
he joined J.P. Morgan Securities as an Equity Research Analyst focusing on
(XURSHDQEHYHUDJHFRPSDQLHVb)URPXQWLO0DUFK0U/HYHQWLVZDV
a member of the Board of Directors of Frigoglass S.A.I.C., a leading global
manufacturer of commercial refrigeration products for the beverage
LQGXVWU\b0U/HYHQWLVKROGVD%$LQ&ODVVLFVIURP8QLYHUVLW\&ROOHJH/RQGRQ
and an MBA from the Kellogg School of Management in Chicago.
([WHUQDODSSRLQWPHQWV{,Q0U/HYHQWLVVWDUWHGWKHSULYDWHHTXLW\
investment arm of Alpheus, a private asset management company, and he
continues to serve as a member of its investment advisory committee.
Coca-Cola HBC
2016 Integrated Annual Report 63
Strategic Report
Jos Octavio Reyes SR
Non-Executive Director
Appointment:0U5H\HVZDVDSSRLQWHGWRWKHb%RDUGRI'LUHFWRUVRI
&RFD&ROD+%&bLQ
Skills and experience: Mr. Jos Octavio Reyes is the former Vice Chairman
of The Coca-Cola Export Corporation, a position in which he served from
January 2013 until his retirement in March 2014. He was president of the
/DWLQ$PHULFD*URXSRI7KH&RFD&ROD&RPSDQ\IURP'HFHPEHUWR
December 2012. Following various managerial positions in Mexico, Brazil and
in The Coca-Cola Company headquarters in Atlanta, Mr. Reyes was named
3UHVLGHQWRIWKH1RUWK/DWLQ$PHULFD'LYLVLRQRI&RFD&RODLQ3ULRUWR
MRLQLQJ&RFD&ROD0U5H\HVVSHQWYH\HDUVZLWK*UXSR,56$D0RQVDQWR
Corporate Governance
&RPSDQ\MRLQWYHQWXUHb0U5H\HVKROGVD%6FLQ&KHPLFDO(QJLQHHULQJ
from the Universidad Nacional Autnoma de Mxico and an MBA from
WKHb,QVWLWXWRb7HFQROJLFRGH(VWXGLRV6XSHULRUHVGH0RQWHUUH\
([WHUQDODSSRLQWPHQWV{Mr. Reyes has been a member of the board of
GLUHFWRUVRI0DVWHU&DUG:RUOG:LGHVLQFH-DQXDU\DQGLVDPHPEHU
RIbWKHERDUGRIGLUHFWRUVRI3DSDORWH&KLOGUHQV0XVHXPLQ0H[LFR&LW\DQG
Fundacin UNAM. He is also a Director of Coca-Cola FEMSA S.A.B. de C.V.
since 2016.
Robert Ryan Rudolph
Non-Executive Director
Appointment: Mr. Rudolph was appointed to the Board of Directors of
&RFD&ROD+%&RQ-XQHb
Financial Statements
Skills and experience: From 1993 until 2006, Mr. Rudolph worked at the
EXVLQHVVODZUP/HQ] 6WDHKHOLQLQ=XULFK3ULRUWRWKDW0U5XGROSKZRUNHG
DVDSXEOLFUHODWLRQVFRQVXOWDQWDWWKHSXEOLFUHODWLRQVDJHQF\+XEHU 3DUWQHU
in Zurich, as marketing assistant and subsequently as manager at Winterthur
/LIH,QVXUDQFHDVZHOODVSDUWWLPHZLWK' 6WKH,QVWLWXWHIRU0DUNHWLQJDQG
Communications Research in Zurich. Mr. Rudolph obtained a Masters degree
LQ/DZIURPWKH8QLYHUVLW\RI=XULFKDQGLVDGPLWWHGWRWKH=XULFKEDU
0Ub5XGROSKDOVRVWXGLHGDWWKH)DFXOWGHV/HWWUHVRIWKH8QLYHUVLW\RI
*HQHYDDVZHOODVWKH(FROH3RO\WHFKQLTXHLQ/DXVDQQH
External appointments: Mr. Rudolph is an attorney and partner at the
=XULFKEDVHGODZUP2HVFK 5XGROSK,QDGGLWLRQKHVHUYHVDVDPHPEHU
RIWKH)RXQGDWLRQ%RDUGRIWKH$*/HYHQWLV)RXQGDWLRQDQGDVDPHPEHU
Swiss Statutory Reporting
RIbWKHERDUGRIYDULRXVSULYDWHO\KHOGFRPSDQLHV
John P. Sechi A
Independent non-Executive Director
Appointment:0U6HFKLZDVbRULJLQDOO\bDSSRLQWHGbWRWKH%RDUGRI'LUHFWRUVRI
&RFD&ROD+%&bLQb
Skills and experience: 0U6HFKLVWDUWHGKLVFDUHHUDVDQDQFLDODQDO\VWDQG
DXGLWPDQDJHU,QKHMRLQHG7KH&RFD&ROD&RPSDQ\DVDQLQWHUQDO
DXGLWRU,Q0U6HFKLEHFDPHWKH)LQDQFH'LUHFWRUIRU&RFD&ROD*UHDW
%ULWDLQ/LPLWHGEDVHGLQ/RQGRQ7KHIROORZLQJ\HDUKHZDVDSSRLQWHG*HQHUDO
0DQDJHURIWKH(XURSHDQ6XSSO\3RLQW*URXSDQGLQKHPRYHGWR0DGULG
WRMRLQWKH,EHULDQ'LYLVLRQDV&KLHI)LQDQFLDO2FHU,Q0U6HFKLZDV
promoted to President of the Central Mediterranean Division of The
Supplementary Information
Coca-Cola Company, based in Milan, where he was responsible for operations
LQ*UHHFH&\SUXV0DOWD%XOJDULD)RUPHU<XJRVODYLD&URDWLD6HUELD%RVQLD
Alexandra Papalexopoulou 0RQWHQHJUR.RVRYRDQG)<520$OEDQLDDQG,WDO\,QKHZDVSURPRWHG
SR R N
Independent non-Executive Director WR3UHVLGHQWRIWKH*HUPDQ'LYLVLRQEDVHGLQ'VVHOGRUI0U6HFKLZDV
Appointment: Mrs. Papalexopoulou joined the Board of Directors of &KDLUPDQRI*OREDOSUD[LVDFRPPHUFLDOFRQVXOWLQJUPIURPWR
&RFD&ROD+%&LQ )URPXQWLOKHZDVWKH3UHVLGHQW*UHDWHU(XURSHRI7KH&DPSEHOO
Skills and experience: Mrs. Papalexopoulou worked previously for the OECD Soup Company, and from 2006 to 2011, a non-executive Board member and
DQGWKHFRQVXOWDQF\UP%RR]$OOHQ +DPLOWRQLQ3DULV)URPXQWLO Chairman of the Audit Committee of Coca-Cola Iecek. Mr. Sechi has a BA in
)HEUXDU\VKHVHUYHGDVDPHPEHURIWKHERDUGRIGLUHFWRUVRI)ULJRJODVV Business Management from Ryerson University in Toronto and is a Chartered
6$,&IURPWRVKHVHUYHGDVDPHPEHURIWKHERDUGRIGLUHFWRUV $FFRXQWDQW&DQDGDDQGD&KDUWHUHG3URIHVVLRQDO$FFRXQWDQW
RI1DWLRQDO%DQNRI*UHHFHDQGIURPWRVKHVHUYHGDVDPHPEHURI External appointments: Mr. Sechi is a non-executive director and advisor
the board of directors of Emporiki Bank. Mrs. Papalexopoulou holds a Bachelor to various privately-held companies and serves as executive chairman of
RI$UWV%$LQ(FRQRPLFVDQG0DWKHPDWLFVIURP6ZDUWKPRUH&ROOHJH86$ 6HFKL 6HFKL3URSHUWLHV/LPLWHG
DQGD0DVWHULQ%XVLQHVV$GPLQLVWUDWLRQ0%$IURP,16($')UDQFH
External appointments: Ms. Papalexopoulou is the Strategic Planning
Director at Titan Cement Company S.A., where she has been employed since
Board committees
Audit and Risk Committee page 80 A
DQGVHUYHVDVH[HFXWLYHGLUHFWRUVLQFH0UV3DSDOH[RSRXORXLV
treasurer and a member of the board of directors of the Paul and Alexandra Nomination Committee page 84 N
&DQHOORSRXORV)RXQGDWLRQDPHPEHURIWKHERDUGRIGLUHFWRUVRIWKH$/%$ Social Responsibility Committee page 86 SR
College of Business Administration Association and a member of the board
Remuneration Committee page 88 R
RIbWUXVWHHVRIWKH$PHULFDQ&ROOHJHRI*UHHFH

COC016_.indb 63 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUW

Dear Shareholder,
2QEHKDOIRIWKH%RDUG,DPSOHDVHGWRbLQWURGXFHRXUb&RUSRUDWH
*RYHUQDQFHUHSRUW

*RRGbJRYHUQDQFHVLWVDWWKHKHDUWRI
RXUb&RPSDQ\
:HKDYHDVWURQJDQGHHFWLYHJRYHUQDQFHV\VWHPWKURXJKRXWWKH
*URXS2SHUDWLQJLQZLGHO\GLHULQJFRXQWULHVRQWKUHHFRQWLQHQWV
LQbYDULRXVHFRQRPLFDQGUHJXODWRU\HQYLURQPHQWVZHKDYHORQJ
UHFRJQLVHGWKDWVWURQJJRYHUQDQFHDQGHHFWLYHOHDGHUVKLSDUH
RIbFULWLFDOLPSRUWDQFHWRWKH*URXSLQRUGHUWRDFKLHYHRXUVWUDWHJLF
JRDOV2XUFRPPLWPHQWWREHVWSUDFWLFHVLQFRUSRUDWHJRYHUQDQFH
SOD\VDNH\UROHLQPDQDJLQJRXUULVNVDQGRSSRUWXQLWLHVDQG
PDLQWDLQLQJWKHWUXVWRIRXUVWDNHKROGHUV5HFRJQLVLQJWKHYDOXH
RIHHFWLYHFRUSRUDWHJRYHUQDQFHZHKDYHUHJXODUO\PRQLWRUHG %RDUGHYDOXDWLRQ
DQGDGRSWHGEHVWSUDFWLFHVVLQFHWKH*URXSZDVIRUPHG
,QOLQHZLWKRXUFRPPLWPHQWWRDGKHUHWREHVWFRUSRUDWHJRYHUQDQFH
7KHFRUSRUDWHJRYHUQDQFHUHJLPHDSSO\LQJWRWKH&RPSDQ\ZKLFKLV SUDFWLFHVDQH[WHUQDO%RDUGHHFWLYHQHVVHYDOXDWLRQZDVFRQGXFWHG
D6ZLVVFRUSRUDWLRQOLVWHGRQWKH/RQGRQ6WRFN([FKDQJH/6(ZLWK
DVHFRQGDU\OLVWLQJRQWKH$WKHQV([FKDQJHDQGRXUFRPSOLDQFH
ZLWKVXFKUXOHVIRUWKH\HDUHQGHG'HFHPEHUDUHGHVFULEHG
LQGHWDLOLQWKHVHFWLRQEHORZHQWLWOHG$SSOLFDWLRQRI8.DQG6ZLVV
&RUSRUDWH*RYHUQDQFH&RGHVDQGWKH8.&LW\&RGHRQ7DNHRYHUV
DQG0HUJHUV
6WUDWHJ\DQGRYHUVLJKW
7KH%RDUGVSULQFLSDOIRFXVGXULQJWKH\HDUFRQWLQXHGWREHRQWKH
H[HFXWLRQRIRXUVWUDWHJLFSLOODUV&RPPXQLW\WUXVW&RQVXPHU
UHOHYDQFH&XVWRPHUSUHIHUHQFHDQG&RVWOHDGHUVKLSZKLFKDUH
GHVFULEHGLQGHWDLOLQWKH6WUDWHJLF5HSRUW:HZHUHDOVRSDUWLFXODUO\
IRFXVHGRQDOLJQLQJVWUDWHJLFDOO\ZLWK7KH&RFD&ROD&RPSDQ\LQ
DOORIRXUPDUNHWVDQGPDQDJLQJHHFWLYHO\WKHULVNVUHODWHGWRWKH
H[WHUQDOHQYLURQPHQWb7KHVHLQFOXGHULVNVDVVRFLDWHGZLWKFXUUHQF\
YRODWLOLW\JHRSROLWLFDOLQVWDELOLW\DQGDGYHUVHPDFURHFRQRPLF
FRQGLWLRQV2XUJRYHUQDQFHIUDPHZRUNLVGHVLJQHGWRHQVXUH
DSSURSULDWHRYHUVLJKWDQGFKDOOHQJH
7KH%RDUGVPHHWLQJVDUHVSOLWEHWZHHQVWUDWHJ\FRQVLGHULQJWKH
ORQJHUWHUPYLVLRQDQGVWUDWHJ\RIWKH*URXSDQGRSHUDWLRQDODQG
QDQFLDOXSGDWHVLQWKHPDUNHWVZKHUHZHRSHUDWHWRSURYLGHOLQNV
DQGFRQWH[WIRUWKHVWUDWHJLFGLVFXVVLRQVDVZHOODVJRYHUQDQFH
RYHUVLJKW0HHWLQJVWDNHSODFHLQ=XJ6ZLW]HUODQGEXWDOVRLQFHUWDLQ
RIRXUPDUNHWVLQRUGHUIRUWKH%RDUGWRLQWHUDFWZLWKORFDOVHQLRU
PDQDJHPHQWDQGOHDUQDERXWWKHLUFKDOOHQJHVDQGWKHZD\WKH\DUH
RSHUDWLQJDWDORFDOOHYHO,QZHFKRVHWRKROGRXU-XQHPHHWLQJ
LQ5XVVLDZKLFKUHSUHVHQWVRQHRIRXUELJJHVWPDUNHWV
$SSRLQWPHQWVDQG%RDUGFRPSRVLWLRQ
'XULQJWKH1RPLQDWLRQ&RPPLWWHHUHYLHZHGWKHFRPSRVLWLRQ
RIWKH%RDUGWRHQVXUHLWKDVWKHDSSURSULDWHEDODQFHRIVNLOOV
H[SHULHQFHLQGHSHQGHQFHDQGNQRZOHGJHLQRUGHUWRGLVFKDUJHLWV
GXWLHVDQGUHVSRQVLELOLWLHVHHFWLYHO\$VDUHVXOWRIWKLVUHYLHZZH
LQWKHVHFRQGKDOIRI:HZLOODOVRUXQDQLQWHUQDOHYDOXDWLRQ
LQbWREXLOGXSRQWKHOHDUQLQJVRIWKHHYDOXDWLRQ)XUWKHU
GHWDLOVDUHVHWRXWLQWKH1RPLQDWLRQ&RPPLWWHH5HSRUWRQSDJH
:HZLOOFRQWLQXHWRNHHSWKHFRPSRVLWLRQDQGVL]HRIWKH%RDUG
XQGHUUHYLHZ:HEHOLHYHWKDWRXU%RDUGLVZHOOEDODQFHGDQGGLYHUVH
ZLWKWKHULJKWPL[RILQWHUQDWLRQDOVNLOOVH[SHULHQFHLQGHSHQGHQFH
DQGNQRZOHGJH8QGHU6ZLVVODZDQGRXU$UWLFOHVRI$VVRFLDWLRQ
WKH&RPSDQ\V%RDUGRI'LUHFWRUVLVVXEMHFWWRUHHOHFWLRQE\RXU
VKDUHKROGHUVRQDQDQQXDOEDVLVZLWKPHPEHUVEHLQJSURSRVHG
E\WKH%RDUGV1RPLQDWLRQ&RPPLWWHHZKLFKVLQFH-XQH
KDVEHHQFRPSRVHGRILQGHSHQGHQW'LUHFWRUV:HXQGHUVWDQGWKH
LPSRUWDQFHRIWKH%RDUGVUROHLQHVWDEOLVKLQJWKH&RPSDQ\VWRQH
IURPWKHWRSbLQWHUPVRILWVFXOWXUHDQGYDOXHVDQGRXU'LUHFWRUVOHDG
E\H[DPSOHDVDPEDVVDGRUVRIRXUYDOXHVLQRUGHUWRFDVFDGHJRRG
EHKDYLRXUWKURXJKRXWWKHRUJDQLVDWLRQ
'LYHUVLW\
7KH%RDUGLVFRPPLWWHGWRUHFUXLWLQJ'LUHFWRUVIURPGLHUHQW
EDFNJURXQGVZLWKGLYHUVHVNLOOVSHUVRQDOLWLHVDQGH[SHULHQFH:H
FRQWLQXHWRPDNHJRRGSURJUHVVLQLPSURYLQJWKHGLYHUVLW\RIWKH
&RPSDQ\VVHQLRUPDQDJHPHQWDQGKDYHLQFUHDVHGWKHQXPEHU
RIZRPHQRQbRXU2SHUDWLQJ&RPPLWWHHGXULQJb:HVKDOO
FRQWLQXHWRDWWDFKLPSRUWDQFHWRGLYHUVLW\RIFXOWXUHJHQGHUDQG
H[SHULHQFHLQRXUQRPLQDWLRQSURFHVVHVZKLOHDWWKHVDPHWLPH
VHHNLQJLQFDQGLGDWHVIRU%RDUGDQGVHQLRUPDQDJHPHQWSRVLWLRQV
WKHFUHGHQWLDOVWKDWDUHQHFHVVDU\IRUWKHFRQWLQXLQJJURZWKRIRXU
RSHUDWLRQVZLWKLQDKLJKO\FRPSHWLWLYHDQGVSHFLDOLVHGLQGXVWU\
)XUWKHUGHWDLOVRIRXUDSSURDFKWRJRYHUQDQFHDQGRXUNH\
DFKLHYHPHQWVWKLV\HDUDUHGHVFULEHGZLWKLQRXU&RUSRUDWH
*RYHUQDQFH5HSRUWEHORZ
DSSRLQWHG0U$KPHW&%R]HU0U:LOOLDP:%LOO'RXJODV,,,0U
5HWR)UDQFLRQLDQG0U5REHUW5\DQ5XGROSKDVQHZQRQ([HFXWLYH
'LUHFWRUVIROORZLQJWKHUHWLUHPHQWIURPWKH%RDUGRI0U*HRUJH
$'DYLG0U,ULDO)LQDQ6LU0LFKDHO/OHZHOO\Q6PLWKDQG0U1LJHO
0DFGRQDOG%HWZHHQWKHP$KPHW%LOO5HWRDQG5REHUWEULQJD
ZHDOWKRIUHOHYDQWQDQFLDOOHJDORSHUDWLRQDODQGLQGXVWU\VSHFLF
LQWHUQDWLRQDOH[SHULHQFHWRWKH%RDUG7KH%RDUGKDVFRQFOXGHG
WKDW%LOODQG5HWRDUHLQGHSHQGHQWLQFKDUDFWHUDQGMXGJHPHQWDQG
WKDWWKH\PHHWWKHLQGHSHQGHQFHFULWHULDRIWKH8.&RUSRUDWH Anastassis G. David
*RYHUQDQFH&RGH Chairman of the Board

COC016_.indb 64 3/16/17 2:35 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
%RDUGDQGFRPPLWWHHDWWHQGDQFHLQ
7KHIROORZLQJWDEOHVKRZVWKHPHPEHUVKLSRIWKH%RDUGFRPPLWWHHVDQGLQFOXGHVWKH'LUHFWRUVDWWHQGDQFHDW%RDUGDQGFRPPLWWHH
PHHWLQJVGXULQJWKHSHULRGEHWZHHQ-DQXDU\DQG'HFHPEHU
Board $XGLWDQG5LVN 5HPXQHUDWLRQ 1RPLQDWLRQ 6RFLDO5HVSRQVLELOLW\
Total Total Total Total Total
'LUHFWRU Independent $WWHQGHG PHHWLQJV $WWHQGHG PHHWLQJV $WWHQGHG PHHWLQJV $WWHQGHG PHHWLQJV $WWHQGHG PHHWLQJV
Anastassis G. David 1R  

Corporate Governance
Dimitris Lois 1R  
Ahmet C. Bozer4 1R  
George A. David5 1R    
Olusola (Sola) David-Borha Yes    
William W. (Bill) Douglas III7 Yes    
Irial Finan8 1R  
Antonio DAmato Yes 9     
Reto Francioni10 Yes      
Sir Michael Llewellyn- Yes        
Smith11
Nigel Macdonald12 Yes    

Financial Statements
Anastasios I. Leventis 1R    
Christo Leventis 1R  
Jos Octavio Reyes 1R    
Alexandra Papalexopoulou Yes        
Robert Ryan Rudolph13 1R  
John P. Sechi Yes    
 ,QFOXGHVFRQIHUHQFHFDOOV
 ,QFOXGHVFRQIHUHQFHFDOOV
 0U$QDVWDVVLV*'DYLGGLGQRWDWWHQGPHHWLQJGLVFXVVLQJKLVDSSRLQWPHQWDV&KDLUPDQ
 0U$KPHW&%R]HUZDVDSSRLQWHGWRWKH%RDUGRQ-XQH+HZDVHOLJLEOHWRDWWHQGRIWKHPHHWLQJVRIWKH%RDUG
 0U*HRUJH$'DYLGUHWLUHGIURPWKH%RDUGDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHRQ-XQH+HZDVHOLJLEOHWRDWWHQGRXWRIPHHWLQJVRIWKH%RDUGDQG
RIbWKHPHHWLQJVbRIWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHH

Swiss Statutory Reporting

 0U*HRUJH$'DYLGGLGQRWDWWHQGPHHWLQJGLVFXVVLQJKLVUHWLUHPHQWDQGWKHDSSRLQWPHQWRI0U$QDVWDVVLV*'DYLGDV&KDLUPDQ
 0U:LOOLDP:%LOO'RXJODV,,,ZDVDSSRLQWHGWRWKH%RDUGDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH+HZDVHOLJLEOHWRDWWHQGbRIWKHPHHWLQJVRIWKH%RDUG
DQGRIWKHPHHWLQJVRIWKH$XGLWDQG5LVN&RPPLWWHH
 0U,ULDO)LQDQUHWLUHGIURPWKH%RDUGRQ-XQH+HZDVHOLJLEOHWRDWWHQGbRIWKHPHHWLQJVRIWKH%RDUG
 0U$QWRQLR'$PDWRGLGQRWDWWHQGRIWKH%RDUG5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHHVPHHWLQJVGXHWRWKHSDVVLQJDZD\RIDQLPPHGLDWHIDPLO\PHPEHU
DQGbEHFDXVHRIORQJVWDQGLQJSULRUFRPPLWPHQWV
 0U5HWR)UDQFLRQLZDVDSSRLQWHGWRWKH%RDUGWKH5HPXQHUDWLRQ&RPPLWWHHDQGWKH1RPLQDWLRQ&RPPLWWHHRQ-XQH+HZDVHOLJLEOHWRDWWHQGbRIWKH
PHHWLQJVRIWKH%RDUGRIWKHPHHWLQJVRIWKH5HPXQHUDWLRQ&RPPLWWHHDQGRIWKHPHHWLQJVRIWKH1RPLQDWLRQ&RPPLWWHH+HGLGQRWDWWHQGRIWKH%RDUG
5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHHVPHHWLQJVGXHWRORQJVWDQGLQJSULRUFRPPLWPHQWV
 6LU0LFKDHO/OHZHOO\Q6PLWKUHWLUHGIURPWKH%RDUGWKH5HPXQHUDWLRQ&RPPLWWHHWKH1RPLQDWLRQ&RPPLWWHHDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHRQ
-XQH+HZDVHOLJLEOHWRDWWHQGbPHHWLQJVRIWKH%RDUGWKHPHHWLQJRIWKH5HPXQHUDWLRQ&RPPLWWHHWKHPHHWLQJRIWKH1RPLQDWLRQ&RPPLWWHHDQG
PHHWLQJRIWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHKHOGSULRUWRKLVUHWLUHPHQW
 0U1LJHO0DFGRQDOGUHWLUHGIURPWKH%RDUGDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH+HZDVHOLJLEOHWRDWWHQGPHHWLQJVRIWKH%RDUGDQGRIWKH
PHHWLQJVRIbWKH$XGLWDQG5LVN&RPPLWWHHKHOGSULRUWRKLVUHWLUHPHQW
 0U5REHUW5\DQ5XGROSKZDVDSSRLQWHGWRWKH%RDUGRQ-XQH+HZDVHOLJLEOHWRDWWHQGRIWKHPHHWLQJVRIWKH%RDUG
Supplementary Information

 0HVVUV$QDVWDVLRV/HYHQWLVDQG&KULVWR/HYHQWLVDEVWDLQHGIURPSDUWLFLSDWLQJLQWKHGHFLVLRQRQWKHDSSRLQWPHQWRI0U$QDVWDVVLV*'DYLGDV&KDLUPDQ

COC016_.indb 65 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

*HQHUDOTXDOLFDWLRQVUHTXLUHGRIDOO'LUHFWRUV
&RFD&ROD+%&V%RDUG5HFUXLWPHQW3ROLF\UHTXLUHVWKDWHDFK'LUHFWRULVUHFRJQLVHGDVDSHUVRQRIWKHKLJKHVWLQWHJULW\DQGVWDQGLQJ
ERWKSHUVRQDOO\DQGSURIHVVLRQDOO\LQVHQLRUEXVLQHVVDFDGHPLFRUJRYHUQPHQWFLUFOHV(DFK'LUHFWRUPXVWKDYHDSURYHQUHFRUGRI
VXFFHVVLQKLVRUKHUHOGDQGPXVWEHUHDG\WRGHYRWHWKHWLPHQHFHVVDU\WRIXOOKLVRUKHUUHVSRQVLELOLWLHVWRWKH&RPSDQ\DFFRUGLQJ
WRbWKHWHUPVDQGFRQGLWLRQVRIWKHLUOHWWHURIDSSRLQWPHQW,QDGGLWLRQHDFK'LUHFWRUPXVWGHPRQVWUDWHIDPLOLDULW\ZLWKDQGUHVSHFWIRU
JRRGFRUSRUDWHJRYHUQDQFHSUDFWLFHVVXVWDLQDELOLW\DQGUHVSRQVLEOHDSSURDFKHVWRVRFLDOLVVXHV7KH%RDUGVKRXOGUHPDLQDGLYHUVH
ERG\bZLWKGLYHUVLW\UHHFWLQJJHQGHUHWKQLFEDFNJURXQGDJHQDWLRQDOLW\DQGSURIHVVLRQDOH[SHULHQFH
Business characteristics 4XDOLFDWLRQVVNLOOVDQGH[SHULHQFH Directors
2XUEXVLQHVVLVH[WHQVLYHDQGLQYROYHVFRPSOH[QDQFLDO ([SHULHQFHLQQDQFHLQYHVWPHQWV 
WUDQVDFWLRQVLQbWKHYDULRXVMXULVGLFWLRQVZKHUHZHRSHUDWH DQGbDFFRXQWLQJ
2XUEXVLQHVVLVWUXO\LQWHUQDWLRQDOZLWKRSHUDWLRQVLQFRXQWULHV %URDGLQWHUQDWLRQDOH[SRVXUHDQGHPHUJLQJ 
ZLWKbGLHUHQWVWDJHVRIGHYHORSPHQWRQWKUHHFRQWLQHQWV DQGbGHYHORSLQJPDUNHWVH[SHULHQFH
2XUEXVLQHVVLQYROYHVWKHPDQXIDFWXULQJVDOHDQGGLVWULEXWLRQRI ([WHQVLYHNQRZOHGJHRIRXUEXVLQHVVDQG 
WKHZRUOGVOHDGLQJQRQDOFRKROLFEHYHUDJHEUDQGV WKHbIDVWPRYLQJFRQVXPHUJRRGVLQGXVWU\
DVbZHOODVbH[SHULHQFHZLWKPDQXIDFWXULQJ
URXWHWRPDUNHWDQGFXVWRPHUUHODWLRQVKLSV
2XU%RDUGVUHVSRQVLELOLWLHVLQFOXGHWKHXQGHUVWDQGLQJDQG 5LVNRYHUVLJKWDQGPDQDJHPHQWH[SHUWLVH 
RYHUVLJKWRIbWKHNH\ULVNVZHDUHIDFLQJHVWDEOLVKLQJRXUULVN
DSSHWLWHDQGHQVXULQJWKDWDSSURSULDWHSROLFLHVDQGSURFHGXUHV
DUHLQSODFHWRHHFWLYHO\PDQDJHDQGPLWLJDWHULVNV
%XLOGLQJFRPPXQLW\WUXVWWKURXJKWKHUHVSRQVLEOHDQG ([SHUWLVHLQVXVWDLQDELOLW\DQGH[SHULHQFHLQ 
VXVWDLQDEOHPDQDJHPHQWRIRXUEXVLQHVVLVDQLQGLVSHQVDEOHSDUW FRPPXQLW\HQJDJHPHQW
RIRXUFXOWXUH
2XUEXVLQHVVLQYROYHVFRPSOLDQFHZLWKPDQ\GLHUHQWUHJXODWRU\ ([SHUWLVHLQFRUSRUDWHJRYHUQDQFHDQGRU 
DQGbFRUSRUDWHJRYHUQDQFHUHTXLUHPHQWVDFURVVDQXPEHURI JRYHUQPHQWbUHODWLRQV
FRXQWULHVDVbZHOODVUHODWLRQVKLSVZLWKQDWLRQDOJRYHUQPHQWVDQG
ORFDODXWKRULWLHV

6XPPDU\RINH\%RDUGDFWLYLWLHVIRUDQGSULRULWLHVIRU
bIRFXVHGDUHDV REMHFWLYHV
2QJRLQJPRQLWRULQJRIWKH*URXSVNH\VWUDWHJLFSULRULWLHV &RQWLQXHGRYHUVLJKWRIUHJXODWRU\DQGFRPSOLDQFHULVN
ZKLFKLQFOXGH 0RQLWRULQJWKHLPSOHPHQWDWLRQRIWKH*URXSVLQWHJUDWHG
DSHRSOHPDQDJHPHQW VXSSO\FKDLQLQIUDVWUXFWXUHRSWLPLVDWLRQ
EIXHOVXVWDLQDEOHJURZWK $OLJQLQJZLWK7KH&RFD&ROD&RPSDQ\LQWKH
FGULYHFRPSHWLWLYHQHVVDQG LPSOHPHQWDWLRQRIWKHNH\VWUDWHJLFSULRULWLHVRIWKH*URXS
GOHDGVXVWDLQDELOLW\ 2YHUVHHLQJVWUDWHJ\LQRUGHUWRDFKLHYHWKH*URXSV
JURZWKREMHFWLYHV
)XUWKHUDOLJQPHQWDQGHQKDQFHPHQWRIVWUDWHJLF
SDUWQHUVKLSVZLWK7KH&RFD&ROD&RPSDQ\ &RQWLQXHGIRFXVRQOHDGHUVKLSDQGGHYHORSPHQWRIWDOHQW
'LVFXVVLQJWKHRSWLPLVDWLRQRIWKH*URXSVVXSSO\FKDLQDQG
FRVWHFLHQF\URXWLQHV
5HYLHZLQJLQGHWDLOWKHDFWXDOVDQGEXVLQHVVRXWORRNLQ5XVVLD
DQG1LJHULDDQGFKDOOHQJLQJWKHPDQDJHPHQWRQFXUUHQF\
GHYDOXDWLRQFRQWLQJHQF\SODQV
5HYLHZLQJSHUIRUPDQFHRIEXVLQHVVDJDLQVWWDUJHWVDQGNH\
EXVLQHVVLQGLFDWRUV
,PSOHPHQWLQJWKHH[WHUQDO%RDUGHYDOXDWLRQUHYLHZDQG
GLVFXVVLQJUHFRPPHQGDWLRQV
'LVFXVVLQJVXFFHVVLRQSODQQLQJIRUVHQLRUUROHV
5HYLHZLQJDQGRYHUVLJKWRQWKH*URXSVULVNPDQDJHPHQW
SURJUDPPHVDQGFRQWUROV

COC016_.indb 66 3/16/17 2:35 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

2SHUDWLRQRIWKH%RDUG
%RDUGJRYHUQDQFHRIWKH&RPSDQ\
7KHJRYHUQDQFHSURFHVVRIWKH%RDUGLVVHWRXWLQRXU$UWLFOHVRI
$VVRFLDWLRQDQGWKH2UJDQLVDWLRQDO5HJXODWLRQV7KHVHUHJXODWLRQV
GHQHWKHUROHRIWKH%RDUGDQGLWVFRPPLWWHHVWKHLUUHVSHFWLYH
UHVSRQVLELOLWLHVDQGDXWKRULW\WKHLUSURFHVVHVDQGWKHLUUHODWLRQVKLS
Strategic Report
0HPEHUVKLSRIWKH%RDUGDQG%RDUG&RPPLWWHHV
2Q'HFHPEHURXU%RDUGFRPSULVHG'LUHFWRUVWKH
&KDLUPDQRQH([HFXWLYH'LUHFWRURQH6HQLRU,QGHSHQGHQW'LUHFWRU
DQGQRQ([HFXWLYH'LUHFWRUV7KHELRJUDSKLHVRIWKH&KDLUPDQ
WKH6HQLRU,QGHSHQGHQW'LUHFWRUWKHFKDLUPHQRIWKH%RDUG
&RPPLWWHHVDQGWKHRWKHUPHPEHUVRIWKH%RDUGWKH$XGLWDQG
5LVN&RPPLWWHHWKH1RPLQDWLRQ&RPPLWWHHWKH5HPXQHUDWLRQ

ZLWKPDQDJHPHQW7KH$UWLFOHVDQGWKH2UJDQLVDWLRQDO5HJXODWLRQV
FDQEHIRXQGDWKWWSFRFDFRODKHOOHQLFFRPHQDERXWXV
FRUSRUDWHJRYHUQDQFHFRUSRUDWHJRYHUQDQFHRYHUYLHZ
5ROHRIWKH%RDUG
2XU%RDUGKDVXOWLPDWHUHVSRQVLELOLW\IRURXUORQJWHUPVXFFHVV
DQGIRUGHOLYHULQJVXVWDLQDEOHVKDUHKROGHUYDOXH7KHUHLVDFOHDU
GLYLVLRQRIUHVSRQVLELOLWLHVEHWZHHQWKHUXQQLQJRIWKH%RDUGDQGWKH
H[HFXWLYHUHVSRQVLELOLW\IRUWKHUXQQLQJRIRXUEXVLQHVV
.H\WDVNVRIWKH%RDUGLQFOXGH RSHUDWLRQRIWKH%RDUGDQGHQVXULQJWKDWDOO'LUHFWRUVDUHSURSHUO\
SURYLGLQJHQWUHSUHQHXULDOOHDGHUVKLSZLWKLQWKH&RPSDQ\VFRQWURO
Corporate Governance
&RPPLWWHHDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHDUHVHWRXW
RQSDJHV0U*HRUJH$'DYLGVWHSSHGGRZQDV&KDLUPDQ
RIWKH%RDUGRQ-DQXDU\DQGUHWLUHGDVD'LUHFWRUZLWK
HHFWIURPWKH$QQXDO*HQHUDO0HHWLQJRQ-XQH,QYLHZ
RIKLVH[FHSWLRQDOFRQWULEXWLRQWRWKH%RDUGDQGKLVPDQ\\HDUVRI
GHGLFDWLRQWRWKH*URXS0U*HRUJH$'DYLGZDVQDPHG&KDLUPDQ
(PHULWXVRIWKH&RPSDQ\ZLWKHHFWIURP-XQH
7KHUHLVDFOHDUVHSDUDWLRQRIWKHUROHVRIWKH&KDLUPDQDQGWKH
&KLHIb([HFXWLYH2FHU7KH&KDLUPDQLVUHVSRQVLEOHIRUWKH
LQIRUPHGDQGFRQVXOWHGRQDOOUHOHYDQWPDWWHUV7KH&KDLUPDQLV
DOVRDFWLYHO\LQYROYHGLQWKHZRUNRIWKH1RPLQDWLRQ&RPPLWWHH

Financial Statements
DQGULVNPDQDJHPHQWIUDPHZRUN
FRQFHUQLQJVXFFHVVLRQSODQQLQJDQGWKHVHOHFWLRQRINH\SHRSOH
GHWHUPLQLQJWKHORQJWHUPEXVLQHVVVWUDWHJ\DQGREMHFWLYHVRI
7KHb&KLHI([HFXWLYH2FHU0U'LPLWULV/RLVLVUHVSRQVLEOHIRUWKH
WKH*URXSDQGPRQLWRULQJWKHLPSOHPHQWDWLRQRIWKHVWUDWHJ\
GD\WRGD\PDQDJHPHQWDQGSHUIRUPDQFHRIWKH&RPSDQ\DQG
DQGbWKHDFKLHYHPHQWRIWKRVHREMHFWLYHV
IRUbWKHLPSOHPHQWDWLRQRIWKHVWUDWHJ\DSSURYHGE\WKH%RDUG
UHYLHZLQJDQGDSSURYLQJWKHDQQXDOEXVLQHVVSODQ
7KH2SHUDWLQJ&RPPLWWHHGHVFULEHGRQSDJHVXSSRUWV
VHWWLQJDSSURSULDWHULVNSDUDPHWHUVDQGPRQLWRULQJWRHQVXUHWKDW 0Ub/RLVbLQKLVUROH
HHFWLYHULVNPDQDJHPHQWDQGLQWHUQDOFRQWUROSURFHVVHVDUH
LQSODFH 7KHQRQ([HFXWLYH'LUHFWRUVRIZKRPVL[DUHGHWHUPLQHGE\
WKH%RDUGWREHLQGHSHQGHQWDUHH[SHULHQFHGLQGLYLGXDOVIURPD
DVVHVVLQJWKHSULQFLSDOULVNVWRWKH&RPSDQ\VEXVLQHVVPRGHO
UDQJHRIEDFNJURXQGVFRXQWULHVDQGLQGXVWULHV7KHFRPSRVLWLRQ
IXWXUHSHUIRUPDQFHVROYHQF\DQGOLTXLGLW\
RIWKH%RDUGbFRPSOLHVZLWKWKH8.&RUSRUDWH*RYHUQDQFH&RGHV
DVVHVVLQJWKHORQJHUWHUPYLDELOLW\RIWKH&RPSDQ\

Swiss Statutory Reporting

UHFRPPHQGDWLRQWKDWDWOHDVWKDOIRIWKH%RDUGH[FOXGLQJWKH
UHYLHZLQJDQGDSSURYLQJSHULRGLFQDQFLDOUHSRUWV &KDLUPDQFRPSULVHLQGHSHQGHQW'LUHFWRUV
SHUIRUPLQJ%RDUGDQGVHQLRUPDQDJHPHQWVXFFHVVLRQSODQQLQJ
VHWWLQJWKH&RPSDQ\VYDOXHVDQGVWDQGDUGVDQGHQVXULQJWKDWLWV
REOLJDWLRQVWRVKDUHKROGHUVDUHXQGHUVWRRGDQGPHW
PRQLWRULQJWKH*URXSVFRPSOLDQFHSURJUDPPHVWRHQVXUH
HHFWLYHFRUSRUDWHJRYHUQDQFHDQG
VXSHUYLVLQJPDQDJHPHQW
,QDGGLWLRQWKH6ZLVV2UGLQDQFHDJDLQVW([FHVVLYH&RPSHQVDWLRQ
LQ/LVWHG&RPSDQLHVLPSRVHVFHUWDLQREOLJDWLRQVRQWKH%RDUG
LQFOXGLQJDUHTXLUHPHQWWRSUHSDUHDUHPXQHUDWLRQUHSRUWSXUVXDQW
Supplementary Information

WR6ZLVVODZ7KHUHPXQHUDWLRQUHSRUWPXVWEHPDGHDYDLODEOHIRU
LQVSHFWLRQWRJHWKHUZLWKWKH6ZLVVEXVLQHVVUHSRUWDQGDXGLWUHSRUW
QRODWHUWKDQGD\VSULRUWRWKHRUGLQDU\VKDUHKROGHUVPHHWLQJDW
WKHRFHVRIWKH&RPSDQ\$Q\VKDUHKROGHUPD\UHTXHVWDFRS\
RIbWKHVHUHSRUWVZKHQDYDLODEOH
2XU%RDUGKDVGHOHJDWHGVSHFLFWDVNVWRLWVFRPPLWWHHVDVVHW
RXWLQWKH2UJDQLVDWLRQDO5HJXODWLRQVDQGUHSRUWVIURPWKHVH
FRPPLWWHHVDUHVHWRXWLQWKLV&RUSRUDWH*RYHUQDQFH5HSRUW

COC016_.indb 67 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

*RYHUQDQFHIUDPHZRUN
%RDUGRI'LUHFWRUV

$XGLWDQG5LVN Remuneration Nomination Social Responsibility

Committee Committee Committee Committee

Responsibility Responsibility Responsibility Responsibility

UHYLHZLQJWKH*URXSVLQWHUQDO UHYLHZLQJDQGDSSURYLQJ UHYLHZLQJWKHVL]HDQG HVWDEOLVKLQJWKHSULQFLSOHV
QDQFLDOFRQWURODQGDQWL WKHUHZDUGVIRUWKHH[HFXWLYHVRI FRPSRVLWLRQRIWKH%RDUG JRYHUQLQJWKH*URXSVSROLFLHV
IUDXGV\VWHPVDVZHOODVWKH WKH*URXSH[FHSWIRUWKH&KLHI LGHQWLI\LQJDQGQRPLQDWLQJQHZ RQVRFLDOUHVSRQVLELOLW\DQG
*URXSVEURDGHUHQWHUSULVHULVN
management and legal and
HWKLFDOFRPSOLDQFHSURJUDPPHV
LQFOXGLQJFRPSXWHULVHG
LQIRUPDWLRQV\VWHPFRQWUROV
([HFXWLYH2FHU PHPEHUVWRWKH%RDUG WKHHQYLURQPHQWWRJXLGH
FRPSDQ\ZLGHUHPXQHUDWLRQDQG PDQDJHPHQWVGHFLVLRQV
SODQQLQJDQGPDQDJLQJ DQGDFWLRQV
EHQHWSODQV LQFRQVXOWDWLRQZLWKWKH
RYHUVHHLQJWKHGHYHORSPHQW
DOOQRQFDVKREOLJDWLRQVJUHDWHU &KDLUPDQD%RDUGPHPEHUVKLS
WKDQZKLFKDUHUHSRUWDEOH VXFFHVVLRQSODQ DQGVXSHUYLVLRQRISURFHGXUHV
DQGVHFXULW\ZLWKWKHLQSXWRI DQGV\VWHPVWRHQVXUHWKH
WKHH[WHUQDODXGLWRUVDQGWKH E\HPSOR\HHVDVLQFRPHH[FHSW HQVXULQJWRJHWKHUZLWKWKH
SHUVRQDOXVHRIFRPSDQ\FDUV DFKLHYHPHQWRIWKH*URXSV
LQWHUQDODXGLWGHSDUWPHQW &KDLUPDQWKHRSHUDWLRQRID VRFLDOUHVSRQVLELOLW\DQG
UHYLHZLQJDQGHYDOXDWLQJWKH
*URXSVPDMRUDUHDVRIQDQFLDO
ULVNDQGWKHVWHSVWDNHQWR
PRQLWRUDQGFRQWUROVXFKULVN
DVZHOODVJXLGHOLQHVDQGSROLFLHV
JRYHUQLQJULVNDVVHVVPHQW
PRQLWRULQJDQGUHYLHZLQJ
WKHH[WHUQDODXGLWRUV
LQGHSHQGHQFHTXDOLW\
DGHTXDF\DQGHHFWLYHQHVV
WDNLQJLQWRFRQVLGHUDWLRQWKH
UHTXLUHPHQWVRIDOODSSOLFDEOH
ODZVLQ6ZLW]HUODQGDQGWKH8.
WKHOLVWLQJUHTXLUHPHQWVRIWKH
/RQGRQ6WRFN([FKDQJHDQG
WKH$WKHQV6WRFN([FKDQJHDQG
DSSOLFDEOHSURIHVVLRQDOVWDQGDUGV FRQGXFWLQJDQDQQXDODVVHVVPHQW
SURYLGLQJDGYLFHWRWKH%RDUGRQ
ZKHWKHUWKH$QQXDO5HSRUWDQG
$FFRXQWVWDNHQDVDZKROHLVIDLU
EDODQFHGDQGXQGHUVWDQGDEOH
DQGSURYLGHVWKHLQIRUPDWLRQ
QHFHVVDU\IRUVKDUHKROGHUV
WRDVVHVVRXUSRVLWLRQDQG
SHUIRUPDQFHDQG
PRQLWRULQJWKHTXDOLW\IDLUQHVV
DQGLQWHJULW\RIWKHQDQFLDO
VWDWHPHQWVRIWKH*URXSDQG
UHYLHZLQJVLJQLFDQWQDQFLDO
UHSRUWLQJLVVXHVDQGMXGJHPHQWV
FRQWDLQHGLQWKHP
JURXSOLIHRUKHDOWKEHQHWV VDWLVIDFWRU\LQGXFWLRQSURJUDPPH
JHQHUDOSROLFLHVJRYHUQLQJ
WKHHDUO\WHUPLQDWLRQRIWKH
H[HFXWLYHVRIWKH*URXSDQG
WKHLPSOHPHQWDWLRQRU
PRGLFDWLRQRIHPSOR\HH
FRYHUDJHIRUDQ\EHQHWSODQ
UHVXOWLQJLQDQLQFUHDVHGDQQXDO
FRVWRIPLOOLRQRUPRUH
IRUQHZPHPEHUVRIWKH%RDUG
DQGDVDWLVIDFWRU\RQJRLQJWUDLQLQJ
DQGHGXFDWLRQSURJUDPPH
IRUH[LVWLQJPHPEHUVRIWKH
%RDUGDQGLWVFRPPLWWHHVDV
LVQHFHVVDU\WRGHOLYHURQRXU
UHVSRQVLELOLW\DQGHQYLURQPHQWDO
VWUDWHJ\7KH&RPPLWWHHZLOODOVR
RYHUVHHDQH[WHUQDOO\IDFLOLWDWHG
VHOIDVVHVVPHQWSURFHVV
VHWWLQJWKHFULWHULDIRUDQG
RYHUVHHLQJWKHDQQXDO
DVVHVVPHQWRIWKHSHUIRUPDQFH
DQGHHFWLYHQHVVRIHDFK
PHPEHURIWKH%RDUGDQGHDFK
%RDUGFRPPLWWHH RILWVVRFLDOUHVSRQVLELOLW\DQG
RIWKHSHUIRUPDQFHDQG
HHFWLYHQHVVRIWKH%RDUG
DQGUHSRUWLQJFRQFOXVLRQVDQG
UHFRPPHQGDWLRQVEDVHGRQWKH
DVVHVVPHQWWRWKH%RDUGDQG
HQVXULQJWKDWHDFKFRPPLWWHH
RIbWKH%RDUGLVFDUU\LQJRXWDVHOI
DVVHVVPHQWRILWVSHUIRUPDQFH
DQGUHSRUWLQJLWVFRQFOXVLRQVDQG
UHFRPPHQGDWLRQVIRUFKDQJHWR
WKH%RDUG
HQYLURQPHQWDOJRDOV
HVWDEOLVKLQJDQGRSHUDWLQJ
DFRXQFLOUHVSRQVLEOHIRU
GHYHORSLQJDQGLPSOHPHQWLQJ
SROLFLHVDQGVWUDWHJLHVWR
DFKLHYHWKH&RPSDQ\VVRFLDO
JRDOVDQGHQVXUH*URXSZLGH
FDSDELOLWLHVWRH[HFXWHVXFK
SROLFLHVDQGVWUDWHJLHV
HQVXULQJWKHQHFHVVDU\DQG
DSSURSULDWHWUDQVSDUHQF\
DQGRSHQQHVVLQWKH*URXSV
EXVLQHVVFRQGXFWLQSXUVXLW
HQYLURQPHQWDOJRDOV
HQVXULQJDQGRYHUVHHLQJWKH
*URXSVLQWHUDFWLRQVZLWK
VWDNHKROGHUVLQUHODWLRQWR
LWVVRFLDOUHVSRQVLELOLW\DQG
HQYLURQPHQWDOSROLFLHVJRDOVDQG
DFKLHYHPHQWVLQFOXGLQJWKHOHYHO
RIFRPSOLDQFHZLWKLQWHUQDWLRQDOO\
DFFHSWHGVWDQGDUGVDQG
UHYLHZLQJ*URXSSROLFLHVRQ
HQYLURQPHQWDOLVVXHVKXPDQ
ULJKWVDQGRWKHUWRSLFVDVWKH\
UHODWHWRbVRFLDOUHVSRQVLELOLW\

Operating Committee

7KH2SHUDWLQJ&RPPLWWHHOHGE\WKH&KLHI([HFXWLYH2FHUPHHWVWLPHVHDFK\HDUDQGLVUHVSRQVLEOHIRU
WKHGD\WRGD\H[HFXWLYHPDQDJHPHQWRIWKH WKHVHWWLQJRIDQQXDOWDUJHWVDQGDSSURYLQJ ZRUNLQJFORVHO\ZLWKWKH&RXQWU\*HQHUDO
*URXSDQGLWVEXVLQHVVHVLQFOXGLQJDOOPDWWHUV DQQXDOEXVLQHVVSODQVZKLFKIRUPWKHEDVLVRIWKH 0DQDJHUVDVVHWRXWLQbWKH*URXSVRSHUDWLQJ
not reserved for or delegated to the Board or *URXSVSHUIRUPDQFHPDQDJHPHQWLQFOXGLQJ IUDPHZRUNLQRUGHUWRFDSWXUHEHQHWVRI
RWKHUERGLHV DFRPSUHKHQVLYHSURJUDPPHRIVWUDWHJLHVDQG VFDOHHQVXULQJDSSURSULDWHJRYHUQDQFHDQG
WKHGHYHORSPHQWRIWKH*URXSVWUDWHJLHVDQG WDUJHWVDJUHHGEHWZHHQWKH&RXQWU\*HQHUDO FRPSOLDQFHDQGPDQDJLQJWKHSHUIRUPDQFHRI
LPSOHPHQWDWLRQRIWKHVWUDWHJLHVDSSURYHGE\ 0DQDJHUVDQGWKH5HJLRQ'LUHFWRUV WKH*URXSDQG
WKH%RDUG OHDGLQJWKH*URXSVWDOHQWDQGFDSDELOLW\
SURYLGLQJDGHTXDWHKHDGRFHVXSSRUWIRUHDFK GHYHORSPHQWSURJUDPPHV
RIWKH*URXSVFRXQWULHV

COC016_.indb 68 3/16/17 2:35 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
.H\UROHVDQGUHVSRQVLELOLWLHV Non-Executive Directors
7KHUROHVDQGUHVSRQVLELOLWLHVRIRXU&KDLUPDQ&KLHI([HFXWLYH 7KHPDLQUHVSRQVLELOLWLHVRIWKHQRQ([HFXWLYH'LUHFWRUVDUHVHWRXW
2FHU6HQLRU,QGHSHQGHQW'LUHFWRUDQG&RPSDQ\6HFUHWDU\DUHVHW LQWKH8.&RUSRUDWH*RYHUQDQFH&RGHDQGLQFOXGH
RXWLQGHWDLOLQRXU2UJDQLVDWLRQDO5HJXODWLRQVZKLFKFDQEHIRXQGDW VFUXWLQLVLQJWKHSHUIRUPDQFHRIPDQDJHPHQWLQPHHWLQJDJUHHG
KWWSFRFDFRODKHOOHQLFFRPHQDERXWXVFRUSRUDWHJRYHUQDQFH JRDOVDQGREMHFWLYHV
FRUSRUDWHJRYHUQDQFHRYHUYLHZ7KHLUNH\UHVSRQVLELOLWLHVDUH FKDOOHQJLQJFRQVWUXFWLYHO\DQGKHOSLQJGHYHORSWKH
DVIROORZV *URXSVVWUDWHJ\

Corporate Governance
Chairman HQVXULQJWKHLQWHJULW\RIQDQFLDOLQIRUPDWLRQ
OHDGVWKH%RDUGSUHVLGHVRYHULWVPHHWLQJVDQGHQVXUHV HQVXULQJWKDWH[HFXWLYHUHPXQHUDWLRQLVDWDSSURSULDWHOHYHOVDQG
LWVHHFWLYHQHVV RYHUVHHLQJVXFFHVVLRQSODQQLQJLQFOXGLQJWKHDSSRLQWPHQW
VHWVWKHDJHQGDIRU%RDUGPHHWLQJVHQVXUHVWKDWDGHTXDWHWLPH RIb([HFXWLYH'LUHFWRUV
LVDYDLODEOHIRUGLVFXVVLRQDQGPDNHVVXUHWKDW%RDUGPHPEHUV
7KHDSSRLQWPHQWRIWKHQRQ([HFXWLYH'LUHFWRUVLVIRUWKHSHULRG
JHWWLPHO\DFFXUDWHDQGFOHDULQIRUPDWLRQ
IURPWKHGDWHRIWKHLUHOHFWLRQXQWLOWKHQH[W$QQXDO*HQHUDO0HHWLQJ
SURPRWHVDFXOWXUHRIRSHQQHVVDQGGHEDWH 7KHQRQ([HFXWLYH'LUHFWRUVDUHUHTXLUHGWRVWDQGIRUUHHOHFWLRQ
HQVXUHVWKHKLJKHVWVWDQGDUGVRIFRUSRUDWHJRYHUQDQFH RQbDQDQQXDOEDVLV8SRQDSSRLQWPHQWQRQ([HFXWLYH'LUHFWRUV
LVWKHPDLQSRLQWRIFRQWDFWEHWZHHQWKH%RDUGDQGPDQDJHPHQW FRQUPWKH\DUHDEOHWRDOORFDWHVXFLHQWWLPHWRPHHWWKH
UHTXLUHPHQWVRIWKHUROH
FRRUGLQDWHVWKHZRUNRIWKH%RDUGFRPPLWWHHVZLWKFRPPLWWHH

Financial Statements
FKDLUVDQG 2XWVLGHDSSRLQWPHQWV
HQVXUHVHHFWLYHFRPPXQLFDWLRQZLWKVKDUHKROGHUV
DQGVWDNHKROGHUV
&KLHI([HFXWLYH2FHU
OHDGVWKHGHYHORSPHQWDQGH[HFXWLRQRIRXUORQJWHUPVWUDWHJ\
ZLWKDFOHDUYLHZWRFUHDWLQJVKDUHKROGHUYDOXH
7KH$UWLFOHVRI$VVRFLDWLRQRIWKH&RPSDQ\DUWLFOHVHWRXWOLPLWV
RQWKHPD[LPXPQXPEHURIH[WHUQDODSSRLQWPHQWVWKDWPHPEHUV
RIRXU%RDUGDQGH[HFXWLYHPDQDJHPHQWPD\KROG,QDGGLWLRQLID
%RDUGPHPEHUZLVKHVWRWDNHXSDQH[WHUQDODSSRLQWPHQWKHRUVKH
PXVWDVNRXU&KDLUPDQVSHUPLVVLRQWRGRVRDQGWKH&KDLUPDQ
LVUHVSRQVLEOHIRUGD\WRGD\PDQDJHPHQWDQGLPSOHPHQWDWLRQ
RIWKH%RDUGVGLUHFWLRQDQGSROLFLHV ZKHWKHUWKHDSSRLQWPHQWLQTXHVWLRQFRXOGQHJDWLYHO\LPSDFWWKH
DFWVDVDOLDLVRQEHWZHHQWKH%RDUGDQGPDQDJHPHQWDQG
FRPPXQLFDWHVZLWKWKH%RDUGRQEHKDOIRIPDQDJHPHQWDQG
FRPPXQLFDWHVRQEHKDOIRIWKH*URXSZLWKVKDUHKROGHUV
HPSOR\HHVJRYHUQPHQWDXWKRULWLHVRWKHUVWDNHKROGHUV
DQGbWKHSXEOLF
Senior Independent Director
DFWVDVDVRXQGLQJERDUGIRUWKH&KDLUPDQ
OHDGVWKHLQGHSHQGHQWQRQ([HFXWLYH'LUHFWRUVRQPDWWHUVWKDW
EHQHWIURPDQLQGHSHQGHQWUHYLHZDQG
LVDYDLODEOHWRVKDUHKROGHUVLIWKH\KDYHFRQFHUQVZKLFKKDYHQRW
EHHQUHVROYHGWKURXJKWKHQRUPDOFKDQQHOVRIFRPPXQLFDWLRQ
Company Secretary
HQVXUHVJRRGLQIRUPDWLRQRZVZLWKLQWKH%RDUGDQG
LWVFRPPLWWHHV 2XU&KLHI([HFXWLYH2FHULVDPHPEHURIWKH%RDUGRIWKH6ZLVV
IDFLOLWDWHVLQGXFWLRQDQGDVVLVWVZLWKWKH%RDUGVSURIHVVLRQDO
GHYHORSPHQWUHTXLUHPHQWV +DYLQJFRQVLGHUHGWKHVFRSHRIWKHH[WHUQDODSSRLQWPHQWVRIWKH
DVVLVWVWKH%RDUGDQGWKH&KDLUPDQWRFRRUGLQDWHDQGIXOOWKHLU
GXWLHVDQGDVVLJQPHQWVDQG
DGYLVHVWKH%RDUGRQJRYHUQDQFHPDWWHUV
COC016_.indb 69
PXVWFRQVXOWWKHFKDLUPDQRIWKH1RPLQDWLRQ&RPPLWWHH7KH
&KDLUPDQZLOODVVHVVDOOUHTXHVWVRQDFDVHE\FDVHEDVLVLQFOXGLQJ
&RPSDQ\RUWKHSHUIRUPDQFHRIWKH'LUHFWRUVGXWLHVWRWKH*URXS
7KHQDWXUHRIWKHDSSRLQWPHQWDQGWKHH[SHFWHGWLPHFRPPLWPHQW
Swiss Statutory Reporting
DUHDOVRDVVHVVHGWRHQVXUHWKDWWKHHHFWLYHQHVVRIWKH%RDUG
ZRXOGQRWEHFRPSURPLVHG
'HWDLOVRIWKHH[WHUQDODSSRLQWPHQWVRIRXUQRQ([HFXWLYH
'LUHFWRUVDUHFRQWDLQHGLQWKHLUUHVSHFWLYHELRJUDSKLHVVHWRXW
RQSDJHV
2XU&KDLUPDQKROGVSRVLWLRQVRQWKH%RDUGVRI$HJHDQ$LUOLQHV6$
DQG$;$,QVXUDQFH6$+HLVDPHPEHURIWKH,QWHUQDWLRQDO%RDUG
RI$GYLVRUVDW7XIWV8QLYHUVLW\DQGWKH$GYLVRU\%RDUGRIWKH)DUHV
&HQWHUDW7XIWV8QLYHUVLW\V)OHWFKHU6FKRRORI/DZDQG'LSORPDF\
+HLVDPHPEHURIWKH%RDUGRI7UXVWHHVRI&ROOHJH<HDULQ$WKHQV
DQGLVDPHPEHURIWKH([HFXWLYH&RPPLWWHHRIWKH&\SUXV8QLRQ
Supplementary Information
RI6KLSRZQHUV
$PHULFDQ&KDPEHURI&RPPHUFHDQG81(6'$
'LUHFWRUVUHIHUUHGWRDERYHRXU%RDUGLVVDWLVHGWKDWWKH\GRQRW
FRPSURPLVHWKHHHFWLYHQHVVRIWKH%RDUGLQSDUWLFXODUEHFDXVH
OHVVWKDQIRXURIWKHSRVLWLRQVKHOGE\WKH&KDLUPDQDUHFRQVLGHUHG
WREHVLJQLFDQWE\WKH%RDUG
3/16/17 2:35 PM
  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

,QGHSHQGHQFH 6KDUHKROGHUVQRPLQHHV
2XU%RDUGKDVFRQFOXGHGWKDW6LU0LFKDHO/OHZHOO\Q6PLWK6HQLRU $VGHVFULEHGLQWKHVHFWLRQHQWLWOHG0DMRUVKDUHKROGHUVRQSDJH
,QGHSHQGHQW'LUHFWRUDQG0U1LJHO0DFGRQDOGZKRERWKUHWLUHG VLQFHWKHPDLQOLVWLQJRIWKH&RPSDQ\RQWKH2FLDO/LVWRIWKH
IURPWKH%RDUGRQ-XQHZHUHLQGHSHQGHQWLQDFFRUGDQFH /RQGRQ6WRFN([FKDQJHLQ.DU7HVV+ROGLQJ7KH&RFD&ROD
ZLWKWKHFULWHULDVHWRXWLQWKH8.&RUSRUDWH*RYHUQDQFH&RGH &RPSDQ\DQGWKHLUUHVSHFWLYHDOLDWHVKDYHQRVSHFLDOULJKWVLQ
/LNHZLVH0U$QWRQLR'$PDWRDQG0U-RKQ36HFKLDUHGHHPHG UHODWLRQWRWKHDSSRLQWPHQWRUUHHOHFWLRQRIQRPLQHH'LUHFWRUV
WREHLQGHSHQGHQWDVDUH0U:LOOLDP:%LOO'RXJODV,,,DQG0U5HWR
)UDQFLRQLZKRZHUHERWKDSSRLQWHGWRWKH%RDUGRQ-XQH
0U$QWRQLR'$PDWRKDVVHUYHGRQWKH%RDUGIRUPRUHWKDQQLQH
\HDUVIURPWKHGDWHRIKLVUVWHOHFWLRQ7KH%RDUGKDVVSHFLFDOO\
FRQVLGHUHGZKHWKHUKLVOHQJWKRIVHUYLFHKDVFRPSURPLVHGKLV
LQGHSHQGHQFHDQGKDVFRQFOXGHGWKDWWKHUHDUHQRUHODWLRQVKLSVRU
FLUFXPVWDQFHVZKLFKDUHOLNHO\WRDHFWRUFRXOGDSSHDUWRDHFWKLV
MXGJHPHQWDQGWKDWWKHLQGHSHQGHQFHRIFKDUDFWHUDQGMXGJHPHQW
RI0U$QWRQLR'$PDWRLVQRWDHFWHGRULPSDLUHGE\KLVOHQJWKRI
DQGWKRVH'LUHFWRUVRIWKH&RPSDQ\ZKRZHUHRULJLQDOO\QRPLQDWHG
DWWKHUHTXHVWRI7KH&RFD&ROD&RPSDQ\RU.DU7HVV+ROGLQJ
ZLOOEHUHTXLUHGWRVWDQGIRUUHHOHFWLRQRQDQDQQXDOEDVLVLQWKH
VDPHZD\DVWKHRWKHU'LUHFWRUV7KH1RPLQDWLRQ&RPPLWWHH
LVUHVSRQVLEOHIRULGHQWLI\LQJDQGUHFRPPHQGLQJSHUVRQVIRU
VXEVHTXHQWQRPLQDWLRQE\WKH%RDUGIRUHOHFWLRQDV'LUHFWRUV
E\bWKHbVKDUHKROGHUVRQDQDQQXDOEDVLV
$VRXU%RDUGFXUUHQWO\FRPSULVHV'LUHFWRUVQHLWKHU.DU7HVV
+ROGLQJQRU7KH&RFD&ROD&RPSDQ\LVLQDSRVLWLRQWRFRQWURO
VHUYLFH0RUHRYHUWKH%RDUGKDVFRQVLGHUHGWKHSHUIRUPDQFHRI
0U$QWRQLR'$PDWRDQGFRQFOXGHGWKDWKHEULQJVXQLTXHVNLOOV
H[SHULHQFHDQGNQRZOHGJHWRWKH%RDUGDQGLWVFRPPLWWHHV7KH
%RDUGLVWKHUHIRUHVDWLVHGZLWKWKHSHUIRUPDQFHDQGFRQWLQXHG
LQGHSHQGHQFHRI0U$QWRQLR'$PDWRDQGFRQVLGHUVLWLPSRUWDQW
WKDWRXUEXVLQHVVFRQWLQXHVWREHQHWIURPKLVH[SHULHQFH
DQGNQRZOHGJH
7KHRWKHUQRQ([HFXWLYH'LUHFWRUV0U$QDVWDVVLV*'DYLG
SRVLWLYHO\RUQHJDWLYHO\GHFLVLRQVRIWKH%RDUGWKDWDUHVXEMHFW
WRVLPSOHPDMRULW\DSSURYDO+RZHYHUGHFLVLRQVRIWKH%RDUGWKDW
DUHVXEMHFWWRWKHVSHFLDOTXRUXPSURYLVLRQVDQGVXSHUPDMRULW\
UHTXLUHPHQWVFRQWDLQHGLQWKH$UWLFOHVRI$VVRFLDWLRQLQSUDFWLFH
UHTXLUHWKHVXSSRUWRI'LUHFWRUVQRPLQDWHGDWWKHUHTXHVWRIDWOHDVW
RQHRIHLWKHU7KH&RFD&ROD&RPSDQ\RU.DU7HVV+ROGLQJLQRUGHU
WREHDSSURYHG,QDGGLWLRQEDVHGRQWKHLUFXUUHQWVKDUHKROGLQJV
QHLWKHU.DU7HVV+ROGLQJQRU7KH&RFD&ROD&RPSDQ\DUHLQD
SRVLWLRQWRFRQWURODGHFLVLRQRIWKHVKDUHKROGHUVSRVLWLYHO\RU
&KDLUPDQ0U$QDVWDVLRV,/HYHQWLV0U&KULVWR/HYHQWLV0U-RV
2FWDYLR5H\HV0U$KPHW&%R]HUDQG0U5REHUW5\DQ5XGROSK
ZHUHDSSRLQWHGDWWKHUHTXHVWRIVKDUHKROGHUVRIWKH&RPSDQ\
.DU7HVV+ROGLQJDQG7KH&RFD&ROD&RPSDQ\7KH\DUHWKHUHIRUH
QRWFRQVLGHUHGWREHLQGHSHQGHQWDVGHQHGE\WKH8.&RUSRUDWH
*RYHUQDQFH&RGH
0U$QDVWDVVLV*'DYLGZDVDSSRLQWHGDV&KDLUPDQRQ
-DQXDU\0U$QDVWDVVLV'DYLGZDVQRWFRQVLGHUHG
LQGHSHQGHQWDWWKHWLPHRIKLVDSSRLQWPHQWDVUHFRPPHQGHGE\
WKH8.&RUSRUDWH*RYHUQDQFH&RGH7KH%RDUGKDVIROORZHGD
WKRURXJKSURFHVVIRUWKHDSSRLQWPHQWZKLFKZDVRYHUVHHQE\WKH
1RPLQDWLRQ&RPPLWWHHLQbDQGLQYROYHGDEURDGFRQVXOWDWLRQ
ZLWKVKDUHKROGHUV7KH%RDUGVSHFLFDOO\FRQVLGHUHGWKHTXHVWLRQ
RI0U$QDVWDVVLV'DYLGVLQGHSHQGHQFH1RWZLWKVWDQGLQJWKDW
0U$QDVWDVVLV'DYLGZDVRULJLQDOO\QRPLQDWHGWRWKH%RDUGE\
.DU7HVV+ROGLQJWKH%RDUGLVVDWLVHGWKDW0U$QDVWDVVLV'DYLGV
DSSRLQWPHQWZLOOSURPRWHFRQWLQXLW\EDODQFHDQGHHFWLYH
OHDGHUVKLS7KH%RDUGDOVRUPO\EHOLHYHVWKDW0U$QDVWDVVLV'DYLG
HPERGLHVWKH&RPSDQ\VFRUHYDOXHVKHULWDJHDQGFXOWXUHDQGWKDW
WKHVHDWWULEXWHVWRJHWKHUZLWKKLVVWURQJLGHQWLFDWLRQZLWKWKH
&RPSDQ\DQGLWVVKDUHKROGHULQWHUHVWVDQGKLVGHHSNQRZOHGJHDQG
H[SHULHQFHRIWKH&RFD&ROD6\VWHPZLOOHQVXUHDQHHFWLYHDQG
DSSURSULDWHO\EDODQFHGOHDGHUVKLSRIWKH%RDUGDQGWKH&RPSDQ\
COC016_.indb 70
QHJDWLYHO\H[FHSWWREORFNDUHVROXWLRQWRZLQGXSRUGLVVROYHWKH
&RPSDQ\RUWRDPHQGWKHVXSHUPDMRULW\YRWLQJUHTXLUHPHQWV
7KHODWWHUUHTXLUHVWKHDSSURYDORIRIVKDUHKROGHUVZKHUH
DOOVKDUHKROGHUVDUHUHSUHVHQWHGDQGYRWLQJ'HSHQGLQJRQWKH
DWWHQGDQFHOHYHOVDWJHQHUDOPHHWLQJVRIWKHVKDUHKROGHUV.DU7HVV
+ROGLQJRU7KH&RFD&ROD&RPSDQ\PD\DOVREHLQDSRVLWLRQWR
FRQWURORWKHUPDWWHUVUHTXLULQJVXSHUPDMRULW\VKDUHKROGHUDSSURYDO
0U$QDVWDVVLV*'DYLG0U$QDVWDVLRV,/HYHQWLV0U&KULVWR
/HYHQWLVDQG0U5REHUW5\DQ5XGROSKZHUHDOORULJLQDOO\DSSRLQWHG
DWWKHUHTXHVWRI.DU7HVV+ROGLQJ0U-RV2FWDYLR5H\HVDQG
0U$KPHW&%R]HUKDYHEHHQDSSRLQWHGDWWKHUHTXHVWRI7KH
&RFD&ROD&RPSDQ\
&RQLFWVRILQWHUHVW
,QDFFRUGDQFHZLWKWKH2UJDQLVDWLRQDO5HJXODWLRQV'LUHFWRUVDUH
UHTXLUHGWRDUUDQJHWKHLUSHUVRQDODQGEXVLQHVVDDLUVVRDVWRDYRLG
DFRQLFWRILQWHUHVWZLWKWKH*URXS
(DFK'LUHFWRUPXVWGLVFORVHWRWKH&KDLUPDQWKHQDWXUHDQGH[WHQW
RIDQ\FRQLFWRILQWHUHVWDULVLQJJHQHUDOO\RULQUHODWLRQWRDQ\
PDWWHUWREHGLVFXVVHGDWD%RDUGPHHWLQJDVVRRQDVWKH'LUHFWRU
EHFRPHVDZDUHRILWVH[LVWHQFH,QWKHHYHQWWKDWWKH&KDLUPDQ
EHFRPHVDZDUHRID'LUHFWRUVFRQLFWRILQWHUHVWWKH&KDLUPDQLV
UHTXLUHGWRFRQWDFWWKHUHVSHFWLYH'LUHFWRUSURPSWO\DQGGLVFXVV
ZLWKKLPRUKHUWKHQDWXUHDQGH[WHQWRIVXFKDFRQLFWRILQWHUHVW
6XEMHFWWRH[FHSWLRQDOFLUFXPVWDQFHVLQZKLFKWKHEHVWLQWHUHVWVRI
WKH&RPSDQ\GLFWDWHRWKHUZLVHWKH'LUHFWRUDHFWHGE\DFRQLFW
RILQWHUHVWLVQRWSHUPLWWHGWRSDUWLFLSDWHLQGLVFXVVLRQVDQG
GHFLVLRQPDNLQJLQYROYLQJWKHLQWHUHVWDWVWDNH
3/16/17 2:35 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
([WHUQDOO\IDFLOLWDWHG%RDUGHYDOXDWLRQ

,QZHHQJDJHG/LQWVWRFNWRXQGHUWDNHDQHYDOXDWLRQRIWKHSHUIRUPDQFHRIWKH%RDUGRI'LUHFWRUV
/LQWVWRFNLVDQDGYLVRU\UPWKDWVSHFLDOLVHVLQ%RDUGSHUIRUPDQFHUHYLHZVDQGKDVQRRWKHUVLJQLFDQW
FRQQHFWLRQZLWKWKH*URXS

Corporate Governance
(YDOXDWLRQSURFHVVDQGDUHDVRIUHYLHZ

Process
7KHUVWVWDJHRIWKHUHYLHZLQYROYHG/LQWVWRFNHQJDJLQJZLWKWKH&RUSRUDWH6HFUHWDULDWWRVHWWKHFRQWH[WIRUWKHHYDOXDWLRQDQGWR
WDLORUVXUYH\FRQWHQWWRWKHVSHFLFFLUFXPVWDQFHVRI&RFD&ROD+%&$*$OO%RDUGPHPEHUVZHUHWKHQUHTXHVWHGWRFRPSOHWHDQ
RQOLQHVXUYH\DGGUHVVLQJWKHSHUIRUPDQFHRIWKH%RDUGLWVFRPPLWWHHVDQGWKH&KDLUPDQ7KHDQRQ\PLW\RIWKHUHVSRQGHQWVZDV
HQVXUHGWKURXJKRXWWKHSURFHVVLQRUGHUWRSURPRWHDQRSHQDQGIUDQNH[FKDQJHRIYLHZV

/LQWVWRFNVXEVHTXHQWO\SURGXFHGDUHSRUWDGGUHVVLQJWKHIROORZLQJDUHDVRI%RDUGSHUIRUPDQFH
7KHDSSURSULDWHQHVVRIWKH%RDUGVFRPSRVLWLRQZDV
DVVHVVHGDVZDVWKHDGHTXDF\RIWKHVXFFHVVLRQSODQV
IRUWKHPHPEHUVRIWKH%RDUG
7KH%RDUGVXQGHUVWDQGLQJRIWKHYLHZVRINH\VWDNHKROGHUV
DQGWKHPDUNHWVLQZKLFKWKH&RPSDQ\RSHUDWHVZDV
FRQVLGHUHGDQGWKHH[WHQWWRZKLFKWKHH[SHULHQFHRI
%RDUGbPHPEHUVLVGUDZQXSRQZDVUHYLHZHG
7KHUHODWLRQVKLSVEHWZHHQ%RDUGPHPEHUVDQGPDQDJHPHQW
DQGWKHDWPRVSKHUHLQPHHWLQJVZHUHDVVHVVHGDVZDVWKH
Financial Statements

7KHRYHUVLJKWRIVWUDWHJ\DQGLWVLPSOHPHQWDWLRQZDV
FRQVLGHUHGDQGWKH%RDUGPHPEHUVYLHZVDVWRWKHWRS
VWUDWHJLFLVVXHVIDFLQJWKH&RPSDQ\ZHUHLGHQWLHG
7KH%RDUGVIRFXVRQULVNDQGFXOWXUHZDVDOVRDVVHVVHGLQ
DGGLWLRQWRWKHDGHTXDF\RIVXFFHVVLRQSODQVIRUPHPEHUV
RIWRSPDQDJHPHQW7KHOHYHORIH[SRVXUHWKH%RDUGKDVWR
PDQDJHPHQWLQYDULRXVVHWWLQJVZDVFRQVLGHUHG
7KHSHUIRUPDQFHRIWKHFRPPLWWHHVRIWKH%RDUGZDVDOVR
UHYLHZHGDVZDVWKHSHUIRUPDQFHRIWKH&KDLUPDQDQG

Swiss Statutory Reporting

TXDOLW\RIWKH%RDUGSDFNVDQGPDQDJHPHQWSUHVHQWDWLRQV WKDWRILQGLYLGXDO%RDUGPHPEHUVbDQGUHFRPPHQGDWLRQV
7KH%RDUGVDQQXDOF\FOHRIZRUNDQGDJHQGDZHUHUHYLHZHG ZHUHLQFOXGHG
DQGWKHEDODQFHRIWLPHEHWZHHQVWUDWHJLFDQGRSHUDWLRQDO
LVVXHVZDVFRQVLGHUHG5HVSRQGHQWVLGHQWLHGDUHDVXSRQ
ZKLFKWKH\IHHOWKH%RDUGVKRXOGVSHQGPRUHRUOHVVWLPH
RYHUbWKHQH[W\HDU

(YDOXDWLRQs5HFRPPHQGDWLRQV
$VDUHVXOWRIWKHUHYLHZDPRQJRWKHUWKLQJVWKH%RDUGDJUHHGWRFRQWLQXHWRGHYRWHPRUHWLPHWRGLVFXVVLRQVRQVWUDWHJLFLVVXHV
Supplementary Information

DQGWRIRFXVbPRUHFORVHO\bRQWKHVXFFHVVLRQSODQVLQSODFHIRUWRSPDQDJHPHQWZKLOHFRQWLQXLQJWRIRFXVRQWKHSHUIRUPDQFH
RIbWKHEXVLQHVV

COC016_.indb 71 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

%RDUGHHFWLYHQHVV 6XFFHVVLRQSODQQLQJ
2XU%RDUGKDVLQSODFHSODQVWRHQVXUHWKHSURJUHVVLYHUHQHZDO
,QIRUPDWLRQDQGWUDLQLQJ RIWKH%RDUGDQGDSSURSULDWHVXFFHVVLRQSODQQLQJ
7KHSUDFWLFHVDQGSURFHGXUHVDGRSWHGE\RXU%RDUGHQVXUHWKDW
3XUVXDQWWRRXU$UWLFOHVRI$VVRFLDWLRQWKH%RDUGFRQVLVWVRI
WKH'LUHFWRUVDUHVXSSOLHGRQDWLPHO\EDVLVZLWKFRPSUHKHQVLYH
DPLQLPXPRIVHYHQDQGDPD[LPXPRIPHPEHUVDQGWKH
LQIRUPDWLRQRQWKHEXVLQHVVGHYHORSPHQWDQGQDQFLDOSRVLWLRQ
'LUHFWRUVDUHHOHFWHGDQQXDOO\IRUDWHUPRIRQH\HDUE\WKH
RIWKH&RPSDQ\WKHIRUPDQGFRQWHQWRIZKLFKLVH[SHFWHGWR
&RPSDQ\VVKDUHKROGHUV$FFRUGLQJO\DOO'LUHFWRUVDUHVXEMHFW
HQDEOHWKH'LUHFWRUVWRGLVFKDUJHWKHLUGXWLHVDQGFDUU\RXWWKHLU
WRbDQQXDOUHHOHFWLRQE\VKDUHKROGHUVLQDFFRUGDQFHZLWKWKH8.
UHVSRQVLELOLWLHV$OO'LUHFWRUVKDYHDFFHVVWRRXU*HQHUDO&RXQVHO
&RUSRUDWH*RYHUQDQFH&RGH,QFDVHRIUHVLJQDWLRQRUGHDWKRI
DVbZHOODVLQGHSHQGHQWSURIHVVLRQDODGYLFHDWWKHH[SHQVHRIWKH
DQ\PHPEHURIWKH%RDUGWKH%RDUGPD\HOHFWDSHUPDQHQWJXHVW
&RPSDQ\$OO'LUHFWRUVKDYHIXOODFFHVVWRWKH&KLHI([HFXWLYH
ZKRPWKH%RDUGZLOOSURSRVHIRUHOHFWLRQE\WKHVKDUHKROGHUVDW
2FHUDQGWKHVHQLRUPDQDJHPHQWDVZHOODVWKHH[WHUQDODXGLWRUV
WKHQH[WJHQHUDOPHHWLQJ
DQGLQWHUQDODXGLWWHDP
'XULQJ0U*HRUJH$'DYLG0U,ULDO)LQDQ6LU0LFKDHO
7KH%RDUGKDVLQSODFHDQLQGXFWLRQSURJUDPPHIRUQHZ'LUHFWRUV
/OHZHOO\Q6PLWKDQG0U1LJHO0DFGRQDOGUHVLJQHGDV'LUHFWRUV
ZKLFKZDVIROORZHGWKLVSDVW\HDUE\0U$KPHW&%R]HU0U:LOOLDP
ZLWKHHFWIURP-XQH0U$KPHW&%R]HU0U:LOOLDP:
:%LOO'RXJODV,,,0U5HWR)UDQFLRQLDQG0Ub5\DQ5XGROSK7KH\
%LOO'RXJODV,,,0U5HWR)UDQFLRQLDQG0U5REHUW5\DQ5XGROSK
PHWLQGLYLGXDOO\ZLWKWKH&KDLUPDQ0U$QDVWDVVLV'DYLG2SHUDWLQJ
ZHUHDSSRLQWHGWRWKH%RDUGZLWKHHFWIURPWKHVDPHGDWH2Q
&RPPLWWHHPHPEHUVDQGRWKHUVHQLRUH[HFXWLYHVDQGUHFHLYHG
-XQH6LU0LFKDHO/OHZHOO\Q6PLWKUHVLJQHGDVPHPEHURI
RULHQWDWLRQWUDLQLQJIURPWKHUHOHYDQWVHQLRUH[HFXWLYHVLQbUHODWLRQ
WKH1RPLQDWLRQ&RPPLWWHH5HPXQHUDWLRQ&RPPLWWHHDQGWKH
WRWKH*URXSDQGFRUSRUDWHJRYHUQDQFHSUDFWLFHV7KHbLQGXFWLRQ
6RFLDO5HVSRQVLELOLW\&RPPLWWHHDQG0U1LJHO0DFGRQDOGUHVLJQHG
SURJUDPPHDOVRLQFOXGHVPHHWLQJVZLWKUHSUHVHQWDWLYHVRIRXU
IURPWKH$XGLWDQG5LVN&RPPLWWHH
VDOHVIRUFHDQGFXVWRPHUVDQGYLVLWVWRRXUSURGXFWLRQSODQWV
$OOQHZ'LUHFWRUVZHUHDSSURSULDWHO\EULHIHGRQbVWUDWHJ\QDQFLDOV
RSHUDWLRQVULVNVDQGSURFHGXUHVLQRUGHUWRbDFKLHYHWKHQHFHVVDU\
LQVLJKWLQWRRXUDFWLYLWLHV
$OO'LUHFWRUVDUHJLYHQWKHRSSRUWXQLW\WRDWWHQGWUDLQLQJWRHQVXUH
2Q-XQH0Ub:LOOLDP:%LOO'RXJODV,,,ZDVDSSRLQWHGD
PHPEHURIWKH$XGLWDQG5LVN&RPPLWWHHDQG0U5HWR)UDQFLRQL
ZDVDSSRLQWHGDPHPEHURIWKH5HPXQHUDWLRQ&RPPLWWHHDQG
WKH1RPLQDWLRQ&RPPLWWHH7KH%RDUGFRQVLGHUV0U$KPHW&
WKDWWKH\DUHNHSWXSWRGDWHRQUHOHYDQWOHJDODFFRXQWLQJDQG
FRUSRUDWHJRYHUQDQFHGHYHORSPHQWV7KH'LUHFWRUVLQGLYLGXDOO\
DWWHQGVHPLQDUVIRUXPVFRQIHUHQFHVDQGZRUNLQJJURXSVRQ
UHOHYDQWWRSLFV7KH1RPLQDWLRQ&RPPLWWHHUHYLHZVRXU'LUHFWRU
WUDLQLQJDFWLYLWLHVUHJXODUO\)LQDOO\DVSDUWRIWKHFRQWLQXLQJ
GHYHORSPHQWRIWKH'LUHFWRUVWKH&RPSDQ\6HFUHWDU\HQVXUHV
WKDWbRXU%RDUGLVNHSWXSWRGDWHZLWKNH\FRUSRUDWHJRYHUQDQFH
GHYHORSPHQWV7KH%RDUGHOHFWVWKH&RPSDQ\6HFUHWDU\ZKR
DFWVDVVHFUHWDU\WRWKH%RDUG
%RDUGFRPPLWWHHDQG'LUHFWRUSHUIRUPDQFH
HYDOXDWLRQ
$WOHDVWDQQXDOO\RQWKHEDVLVRIDQDVVHVVPHQWFRQGXFWHGE\WKH
1RPLQDWLRQ&RPPLWWHHWKH%RDUGUHYLHZVLWVRZQSHUIRUPDQFH
DVZHOODVWKHSHUIRUPDQFHRIHDFKRIWKH%RDUGFRPPLWWHHV7KLV
UHYLHZVHHNVWRGHWHUPLQHZKHWKHUWKH%RDUGDQGLWVFRPPLWWHHV
IXQFWLRQHHFWLYHO\DQGHFLHQWO\'XULQJWKH\HDUWKH&KDLUPDQ
PHHWVZLWKWKH'LUHFWRUVWRUHFHLYHIHHGEDFNRQWKHIXQFWLRQLQJ
RIWKH%RDUGDQGLWVFRPPLWWHHVWKHERDUGURRPG\QDPLFVDQGWKH
*URXSVVWUDWHJ\3DUWLFXODUIRFXVLVJLYHQWRDUHDVZKHUHD'LUHFWRU
EHOLHYHVWKHSHUIRUPDQFHRIWKH%RDUGDQGLWVFRPPLWWHHVFRXOG
EHLPSURYHG$UHSRUWLVSUHSDUHGIRUWKH%RDUGRQLWVHHFWLYHQHVV
DQGWKDWRILWVFRPPLWWHHV7KHLQGHSHQGHQW'LUHFWRUVPHHW
VHSDUDWHO\RQDUHJXODUEDVLVWRGLVFXVVDYDULHW\RILVVXHVLQFOXGLQJ
WKHHHFWLYHQHVVRIWKH%RDUG$QHYDOXDWLRQRIHDFK'LUHFWRU
%R]HU0U:LOOLDP:b%LOO'RXJODV,,,0U5HWR)UDQFLRQLDQG0Ub5\DQ
5XGROSKWREHYDOXDEOHDGGLWLRQVWRWKH%RDUG
7KHUHZHUHQRRWKHUFKDQJHVWR%RDUGRUFRPPLWWHHPHPEHUVKLS
GXULQJ
,QDFFRUGDQFHZLWKWKH2UJDQLVDWLRQDO5HJXODWLRQVWKH%RDUG
SURSRVHVIRUHOHFWLRQDWWKHVKDUHKROGHUVPHHWLQJQHZ'LUHFWRUV
ZKRKDYHEHHQUHFRPPHQGHGE\WKH1RPLQDWLRQ&RPPLWWHHDIWHU
FRQVXOWDWLRQZLWKWKH&KDLUPDQ,QPDNLQJVXFKUHFRPPHQGDWLRQV
WKH1RPLQDWLRQ&RPPLWWHHDQGWKH%RDUGPXVWFRQVLGHUFULWHULD
LQFOXGLQJWKHRYHUDOOEDODQFHRIVNLOOVH[SHULHQFHLQGHSHQGHQFH
DQGNQRZOHGJHRIWKH%RDUGPHPEHUDVZHOODVGLYHUVLW\
FRQVLGHUDWLRQVLQFOXGLQJJHQGHU6HHWKH1RPLQDWLRQ&RPPLWWHH
UHSRUWRQSDJHIRUIXUWKHULQIRUPDWLRQRQWKHUROHDQGZRUNRI
WKH1RPLQDWLRQ&RPPLWWHH7KURXJKWKLVSURFHVVWKH%RDUGLV
VDWLVHGWKDWWKHb%RDUGDQGLWVFRPPLWWHHVKDYHWKHDSSURSULDWH
EDODQFHRIbH[SHULHQFHGLYHUVLW\LQGHSHQGHQFHDQGNQRZOHGJH
RIWKH&RPSDQ\bWRHQDEOHWKHPWRGLVFKDUJHWKHLUGXWLHVDQG
UHVSRQVLELOLWLHVHHFWLYHO\
RWKHUbWKDQbWKH&KDLUPDQLVFRQGXFWHGE\WKH&KDLUPDQDQGWKH
6HQLRU,QGHSHQGHQW'LUHFWRU7KH6HQLRU,QGHSHQGHQW'LUHFWRU
OHDGVWKHHYDOXDWLRQRIWKH&KDLUPDQLQFRQMXQFWLRQZLWKWKH
QRQ([HFXWLYH'LUHFWRUVWDNLQJLQWRDFFRXQWWKHYLHZVRIWKH
&KLHIb([HFXWLYH2FHUDQGDVDPDWWHURISUDFWLFHPHHWVZLWK
WKHRWKHULQGHSHQGHQWQRQ([HFXWLYH'LUHFWRUVZKHQHDFK%RDUG
PHHWLQJLVKHOGWRGLVFXVVLVVXHVWRJHWKHUZLWKRXWWKH&KLHI
([HFXWLYH2FHURURWKHUQRQ([HFXWLYH'LUHFWRUVSUHVHQW

COC016_.indb 72 3/16/17 2:35 PM


.H\LQYHVWRUUHODWLRQVDFWLYLWLHVLQ
)HEUXDU\
,QYHVWRUURDGVKRZLQ
/RQGRQDQG(GLQEXUJK
)L[HGLQFRPHLQYHVWRU
URDGVKRZ/RQGRQ
$PVWHUGDP3DULV
DQG)UDQNIXUW
-XQH
&RFD&ROD+%&,QYHVWRU
'D\/RQGRQ
'HXWVFKH%DQNGE
$FFHVV*OREDO&RQVXPHU
&RQIHUHQFH3DULV
$QQXDOJHQHUDO
VKDUHKROGHUVPHHWLQJ=XJ
COC016_.indb 73
Coca-Cola HBC
2016 Integrated Annual Report 
Strategic Report
0DUFK $SULO 0D\
7KH&RQVXPHU$QDO\VW ,QYHVWRUURDGVKRZ -30RUJDQ*OREDO
*URXSRI(XURSH LQ1HZ<RUN%RVWRQ &RQVXPHUDQG5HWDLO
Corporate Governance
&RQIHUHQFH/RQGRQ 6DQb)UDQFLVFRDQG&KLFDJR &RQIHUHQFH/RQGRQ
*UHHN,QVWLWXWLRQDO
'D\$WKHQV
6HSWHPEHU 1RYHPEHU 'HFHPEHU
%DUFOD\V*OREDO ,QYHVWRUURDGVKRZ ,QYHVWRUURDGVKRZLQ
&RQVXPHU6WDSOHV LQ/RQGRQ 1HZ<RUN
&RQIHUHQFH%RVWRQ ,QYHVWRUURDGVKRZ ,QYHVWRUURDGVKRZ
%DQNRI$PHULFD0HUULOO LQ'XEOLQ LQ7RURQWR
Financial Statements
/\QFK*OREDO&RQVXPHU  &LWL*OREDO&RQVXPHU &UHGLW6XLVVHth$QQXDO
5HWDLO&RQIHUHQFH/RQGRQ 6HPLQDU/RQGRQ (XURSHDQ%XVLQHVV
6HUYLFHV &RQVXPHU
&RQIHUHQFH6DQ)UDQFLVFR
Swiss Statutory Reporting
Supplementary Information
3/16/17 2:35 PM
  Coca-Cola HBC
2016 Integrated Annual Report
&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG
6KDUHKROGHUHQJDJHPHQW
7KH&KDLUPDQWKH6HQLRU,QGHSHQGHQW'LUHFWRUDQGbWKH&KDLUPHQ
RIWKH$XGLWDQG5LVN5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHHV
ZLOOEHDYDLODEOHDWWKH$QQXDO*HQHUDO0HHWLQJRIWKH&RPSDQ\
WRDQVZHUTXHVWLRQVIURPVKDUHKROGHUV7KH%RDUGHQFRXUDJHV
VKDUHKROGHUVWRDWWHQGDVLWSURYLGHVDQRSSRUWXQLW\WRHQJDJH
ZLWKbWKH%RDUG
3XUVXDQWWR6ZLVVODZDQGWKH$UWLFOHVRI$VVRFLDWLRQVKDUHKROGHUV
DQQXDOO\HOHFWDQLQGHSHQGHQWSUR[\DQGZHKDYHDGRSWHGDQ
HOHFWURQLFSUR[\YRWLQJV\VWHPIRURXU$QQXDO*HQHUDO0HHWLQJV
7KH&RPSDQ\KDVDGHGLFDWHGLQYHVWRUUHODWLRQVIXQFWLRQZKLFK
UHSRUWVWRWKH&KLHI)LQDQFLDO2FHU7KURXJKLWVLQYHVWRUUHODWLRQV
WHDPWKH&RPSDQ\DQGb%RDUGPDLQWDLQDGLDORJXHZLWKLQVWLWXWLRQDO
LQYHVWRUVDQGQDQFLDODQDO\VWVRQRSHUDWLRQDOQDQFLDOSHUIRUPDQFH
DQGVWUDWHJLFGLUHFWLRQLWHPV$VHYLGHQWLQWKHWDEOHDERYHRQ
SDJHbbWRUHHFWRXUFRPPLWPHQWWRRXUVWURQJVKDUHKROGHUEDVH
PHPEHUVRIRXUPDQDJHPHQWDQGWKHLQYHVWRUUHODWLRQVWHDPKHOG
QXPHURXVPHHWLQJVZLWKLQYHVWRUVDQGVKDUHKROGHUVGXULQJ
DQGLQSDUWLFXODUKHOGDQ,QYHVWRU'D\LQ/RQGRQLQ-XQHb7KH
IHHGEDFNIURPVKDUHKROGHUVKDVEHHQUHJXODUO\FRQVLGHUHGE\WKH
%RDUGDQGDSSURSULDWHDFWLRQWRIXUWKHUHQJDJHZLWKVKDUHKROGHUV
ZDVGHFLGHG
2XU%RDUGEHOLHYHVWKDWH[FHSWDVVHWRXWLQWKHSDUDJUDSKV
EHORZWKH&RPSDQ\LVLQFRPSOLDQFHZLWKWKHSURYLVLRQVRIWKH
8.b&RUSRUDWH*RYHUQDQFH&RGHDQGFRPSOLHGZLWKVXFKSURYLVLRQV
WKURXJKRXW3XUVXDQWWRRXUREOLJDWLRQVXQGHUWKH/LVWLQJ
5XOHVZHLQWHQGWRFRQWLQXDOO\FRPSO\ZLWKWKHSURYLVLRQVRIWKH
8.b&RUSRUDWH*RYHUQDQFH&RGHRUWRH[SODLQDQ\LQVWDQFHVRI
QRQFRPSOLDQFHLQRXU$QQXDO5HSRUW
7KH8.&RUSRUDWH*RYHUQDQFH&RGHLVDYDLODEOHRQOLQHDWKWWSV
ZZZIUFRUJXN2XU:RUN3XEOLFDWLRQV&RUSRUDWH*RYHUQDQFH
8.&RUSRUDWH*RYHUQDQFH&RGH$SULOSGI
&HUWDLQGLHUHQFHVEHWZHHQWKH&RPSDQ\V
FRUSRUDWHJRYHUQDQFHSUDFWLFHVDQGWKH8.
&RUSRUDWH*RYHUQDQFH&RGH
$VRIQRZWKH5HPXQHUDWLRQ&RPPLWWHHGRHVQRWKDYHVROH
DXWKRULW\WRGHWHUPLQHWKHFRPSHQVDWLRQRIWKH&KLHI([HFXWLYH
2FHUDQGWKH&KDLUPDQDVUHFRPPHQGHGE\WKH8.&RUSRUDWH
*RYHUQDQFH&RGH5DWKHUWKHWHUPVRIWKHFRPSHQVDWLRQRI
WKH&KLHI([HFXWLYH2FHUDUHGHWHUPLQHGE\WKHb%RDUGXSRQ
WKHUHFRPPHQGDWLRQRIWKH5HPXQHUDWLRQ&RPPLWWHH7KH
&RPSDQ\KDVWDNHQWKHYLHZWKDWUHTXLULQJWKH%RDUGDVDZKROH
WRGHWHUPLQHFRPSHQVDWLRQH[FOXGLQJWKHSDUWLFLSDWLRQRIWKH
$SSOLFDWLRQRI8.DQG6ZLVVFRUSRUDWH
JRYHUQDQFHFRGHVDQGWKH8.&LW\&RGH
RQ7DNHRYHUVDQG0HUJHUV
8.&RUSRUDWH*RYHUQDQFH&RGH
2XUDLPLVWRHQVXUHWKHKLJKHVWOHYHORIFRUSRUDWHJRYHUQDQFH
DFFRXQWDELOLW\DQGULVNPDQDJHPHQW2XULQWHUQDOSROLFLHVDQG
SURFHGXUHVZKLFKKDYHEHHQFRQVLVWHQWO\HHFWLYHDUHSURSHUO\
GRFXPHQWHGDQGFRPPXQLFDWHGDJDLQVWWKHIUDPHZRUNDSSOLFDEOH
WRSUHPLXPOLVWHGFRPSDQLHVLQWKH8.
7KH8.&RUSRUDWH*RYHUQDQFH&RGHVHWVRXWWKHSULQFLSOHVRI
JRRGSUDFWLFHLQUHODWLRQWRERDUGOHDGHUVKLSDQGHHFWLYHQHVV
UHPXQHUDWLRQDFFRXQWDELOLW\DQGUHODWLRQVKLSVZLWKVKDUHKROGHUV
$VDSUHPLXPOLVWHGFRPSDQ\ZHDUHUHTXLUHGWRFRPSO\ZLWKWKH
SURYLVLRQVRIWKH8.&RUSRUDWH*RYHUQDQFH&RGHRUH[SODLQDQ\
LQVWDQFHVRIQRQFRPSOLDQFHWRVKDUHKROGHUV
COC016_.indb 74
&(2ZKRVHFRPSHQVDWLRQLVWKHVXEMHFWRIGHWHUPLQDWLRQDOORZV
IXOODQGULJRURXVDQDO\VLVDQGGHEDWHLQYROYLQJDZLGHUQXPEHU
RI'LUHFWRUVVHWWLQJDKLJKVWDQGDUGRIFRUSRUDWHJRYHUQDQFH
+RZHYHUDVH[SODLQHGLQWKH5HPXQHUDWLRQ5HSRUWZHKDYH
FRQVLGHUHGWKLVSRVLWLRQLQWKHOLJKWRIEHVWSUDFWLFHLQWKH8.DQG
SURSRVHWREULQJWRWKH$QQXDO6KDUHKROGHUV0HHWLQJD
SURSRVDOWKDWWKH5HPXQHUDWLRQ&RPPLWWHHEHDXWKRULVHGWRGHFLGH
WKH&(2VSD\7KH5HPXQHUDWLRQ&RPPLWWHHRSHUDWHVXQGHU
WKHFKDUWHUIRUWKH&RPPLWWHHVRIWKH%RDUGRIWKH&RPSDQ\VHW
IRUWKLQ$QQH[&WRWKHRUJDQLVDWLRQDOUHJXODWLRQVRIWKH&RPSDQ\
ZKLFKVSHFLHVWKHDXWKRULW\RIVXFKFRPPLWWHHLQUHODWLRQWR
GHWHUPLQLQJWKHFRPSHQVDWLRQRIWKH&KLHI([HFXWLYH2FHUDQG
WKH&KDLUPDQWKHVHDUHDYDLODEOHRQWKH*URXSVZHEVLWHDWKWWS
FRFDFRODKHOOHQLFFRPHQDERXWXVFRUSRUDWHJRYHUQDQFH
FRUSRUDWHJRYHUQDQFHRYHUYLHZ
7KH6ZLVV2UGLQDQFHDJDLQVW([FHVVLYH&RPSHQVDWLRQLQ/LVWHG
&RPSDQLHVZKLFKKDVEHHQVXEMHFWWRFHUWDLQWUDQVLWLRQDOUXOHV
LQHHFWVLQFH-DQXDU\IXUWKHUOLPLWVWKHDXWKRULW\RIWKH
5HPXQHUDWLRQ&RPPLWWHHDQGWKH%RDUGWRGHWHUPLQHFRPSHQVDWLRQ
3/16/17 2:35 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
7KHHHFWLYHOLPLWDWLRQVLQFOXGHUHTXLULQJWKDWWKHJHQHUDOPHHWLQJ ,QDGGLWLRQWKH8.V&LW\&RGHRQ7DNHRYHUVDQG0HUJHUVWKH
RIVKDUHKROGHUVDSSURYHWKHPD[LPXPWRWDOFRPSHQVDWLRQRIHDFK
RIWKH%RDUGDQGWKH2SHUDWLQJ&RPPLWWHHUHTXLULQJWKDWFHUWDLQ
FRPSHQVDWLRQHOHPHQWVEHDXWKRULVHGLQWKH$UWLFOHVRI$VVRFLDWLRQ
DQGSURKLELWLQJFHUWDLQIRUPVRIFRPSHQVDWLRQVXFKDVVHYHUDQFH
SD\PHQWVDQGQDQFLDOPRQHWDU\LQFHQWLYHVIRUWKHDFTXLVLWLRQ 
&LW\b&RGHGRHVQRWDSSO\WRWKH&RPSDQ\E\RSHUDWLRQRIODZ
DVbWKH&RPSDQ\LVQRWLQFRUSRUDWHGXQGHU(QJOLVKODZ7KH$UWLFOHV
RI$VVRFLDWLRQLQFOXGHVSHFLFSURYLVLRQVGHVLJQHGWRSUHYHQWDQ\
SHUVRQDFTXLULQJVKDUHVFDUU\LQJRUPRUHRIWKHYRWLQJULJKWV
WDNHQWRJHWKHUZLWKDQ\LQWHUHVWLQVKDUHVKHOGRUDFTXLUHGE\WKH
RUGLVSRVDORIUPV:HDUHLQFRPSOLDQFHZLWKWKHUHTXLUHPHQWV DFTXLUHURUSHUVRQVDFWLQJLQFRQFHUWZLWKWKHDFTXLUHUH[FHSWLI
RIWKH6ZLVV2UGLQDQFHDJDLQVW([FHVVLYH&RPSHQVDWLRQLQ/LVWHG VXEMHFWWRFHUWDLQH[FHSWLRQVVXFKDFTXLVLWLRQZRXOGQRWKDYHEHHQ

Corporate Governance
&RPSDQLHVDQGKDYHDPHQGHGRXU$UWLFOHVRI$VVRFLDWLRQWR SURKLELWHGE\WKH&LW\&RGHRULIVXFKDFTXLVLWLRQLVPDGHWKURXJK
WKDWHHFW DQRHUFRQGXFWHGLQDFFRUGDQFHZLWKWKH&LW\&RGH)RUIXUWKHU
GHWDLOVSOHDVHUHIHUWRWKH&RPSDQ\V$UWLFOHVRI$VVRFLDWLRQZKLFK
0U$QDVWDVVLV*'DYLGZKRVXFFHHGHG0U*HRUJH$'DYLGDV
DUHDYDLODEOHRQRXUZHEVLWH
&KDLUPDQDWWKHUHFRPPHQGDWLRQRIWKH%RDUGZDVRULJLQDOO\
DSSRLQWHGDWWKHUHTXHVWRI.DU7HVV+ROGLQJDQGZDVQRWDWWKH
WLPHRIKLVDSSRLQWPHQWDV&KDLUPDQLQGHSHQGHQWDVGHQHGE\
WKH8.&RUSRUDWH*RYHUQDQFH&RGH,QYLHZRI0U$QDVWDVVLV*
'DYLGVVWURQJLGHQWLFDWLRQZLWKWKH&RPSDQ\DQGLWVVKDUHKROGHU
LQWHUHVWVFRPELQHGZLWKKLVGHHSNQRZOHGJHDQGH[SHULHQFHRIWKH
&RFD&ROD6\VWHPWKH%RDUGGHHPHGLWWREHLQWKHEHVWLQWHUHVWV
RIWKH*URXSDQGLWVVKDUHKROGHUVIRUKLPWREHDSSRLQWHGDV

Financial Statements
&KDLUPDQWRVXFFHHG0U*HRUJH$'DYLGWRFRQWLQXHWRSURPRWH
DQHHFWLYHDQGDSSURSULDWHO\EDODQFHGOHDGHUVKLSRIWKH*URXS,Q
DFFRUGDQFHZLWKWKHHVWDEOLVKHGSROLF\RIDSSRLQWLQJDOO'LUHFWRUVIRU
RQH\HDUDWDWLPHWKH%RDUGLQWHQGVWRFRQWLQXHWRNHHSDOOSRVLWLRQV
XQGHUUHJXODUUHYLHZDQGVXEMHFWWRDQQXDOHOHFWLRQE\VKDUHKROGHUV
DWWKH$QQXDO*HQHUDO0HHWLQJ

2WKHUFRUSRUDWHJRYHUQDQFHFRGHV
$VSDUWRIRXUFRPPLWPHQWWREHVWSUDFWLFHVLQFRUSRUDWH
JRYHUQDQFHZHKDYHLPSOHPHQWHGDQXPEHURIPHDVXUHVWR
HQKDQFHLQWHUQDOFRQWUROVDQGULVNPDQDJHPHQW7RHQVXUHWKDWRXU
FRUSRUDWHJRYHUQDQFHV\VWHPVUHPDLQLQOLQHZLWKLQWHUQDWLRQDOEHVW

Swiss Statutory Reporting

SUDFWLFHVRXUFRUSRUDWHJRYHUQDQFHVWDQGDUGVDQGSURFHGXUHV
DUHFRQWLQXRXVO\UHYLHZHGLQOLJKWRIFXUUHQWGHYHORSPHQWVDQG
UXOHPDNLQJSURFHVVHVLQWKH8.6ZLW]HUODQGDQGHOVHZKHUHLQ
WKH(8
7KHUHLVQRPDQGDWRU\FRUSRUDWHJRYHUQDQFHFRGHXQGHU6ZLVV
ODZDSSOLFDEOHWRXV7KHPDLQVRXUFHRIODZIRU6ZLVVJRYHUQDQFH
UXOHVLVWKHFRPSDQ\ODZFRQWDLQHGLQDUWLFOHVRIWKH6ZLVV
&RGHRI2EOLJDWLRQVDVZHOODVWKH2UGLQDQFHDJDLQVW([FHVVLYH
&RPSHQVDWLRQLQ/LVWHG&RPSDQLHV
Supplementary Information

COC016_.indb 75 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

2SHUDWLQJ&RPPLWWHH
7KH2SHUDWLQJ&RPPLWWHHUHSUHVHQWVWKHH[HFXWLYHOHDGHUVKLSRIWKH&RPSDQ\

4 5 10

6 9

8 2

1. Dimitris Lois 6. Sotiris Yannopoulos

&KLHI([HFXWLYH2FHU
2. Michalis Imellos
&KLHI)LQDQFLDO2FHU
1D\D.DORJHUDNL
*URXS&KLHI&XVWRPHU
DQGb&RPPHUFLDO2FHU
4. Alain Brouhard
%XVLQHVV6ROXWLRQV
5HJLRQ'LUHFWRU$XVWULD&]HFK
5HSXEOLF+XQJDU\6ORYDNLD,WDO\
DQGb6ZLW]HUODQG
7. Zoran Bogdanovic
5HJLRQ'LUHFWRU%RVQLDDQG
+HU]HJRYLQD%XOJDULD&URDWLD&\SUXV
)<520*UHHFH1RUWKHUQ,UHODQGDQG
5HSXEOLFRI,UHODQG1LJHULD5RPDQLD
DQG6HUELDLQFOXGLQJWKHb5HSXEOLF
DQGb6\VWHPVb'LUHFWRU
5. Keith Sanders
5HJLRQ'LUHFWRU$UPHQLD%HODUXV
7 3 (VWRQLD/DWYLD/LWKXDQLD3RODQG
5XVVLDQ)HGHUDWLRQ8NUDLQH
DQGb0ROGRYD
COC016_.indb 76
RIb.RVRYR6ORYHQLDDQG0RQWHQHJUR
8. Marcel Martin
*URXS6XSSO\&KDLQ'LUHFWRU
9. Jan Gustavsson
*HQHUDO&RXQVHO&RPSDQ\6HFUHWDU\
DQG'LUHFWRURIb6WUDWHJLF'HYHORSPHQW
10. Sanda Parezanovic
*URXS+XPDQ5HVRXUFHV'LUHFWRU
3/16/17 2:35 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
1. Dimitris Lois, 4. Alain Brouhard,
&KLHI([HFXWLYH2FHU (54) Business Solutions and Systems Director

0U/RLVLVWKH*URXSV&KLHI([HFXWLYH2FHUDQG&KDLUPDQRIWKH 6HQLRUPDQDJHPHQWWHQXUH$SSRLQWHG-XQH\HDUV

2SHUDWLQJ&RPPLWWHH0U/RLVELRJUDSK\DSSHDUVRQSDJH
3UHYLRXV*URXSUROHV5HJLRQGLUHFWRUUHVSRQVLEOHIRU1LJHULD
2. Michalis Imellos, 5RPDQLD0ROGRYD%XOJDULD6HUELDDQG0RQWHQHJURWRb
&KLHI)LQDQFLDO2FHU DQG:DWHUDQG-XLFHEXVLQHVVGLUHFWRU

Corporate Governance
2XWVLGHLQWHUHVWV1RH[WHUQDODSSRLQWPHQWV
6HQLRUPDQDJHPHQWWHQXUH$SSRLQWHG$SULO\HDUV
3UHYLRXVUHOHYDQWH[SHULHQFH0U%URXKDUGEHJDQKLVFDUHHUZLWK
3UHYLRXV*URXSUROHV5HJLRQQDQFHGLUHFWRUUHVSRQVLEOHIRU
3URFWHU *DPEOHZKHUHKHZRUNHGLQIRXUGLHUHQWFRXQWULHVDQG
1LJHULD5RPDQLD0ROGRYD%XOJDULD*UHHFH&\SUXV6HUELD
LQbDYDULHW\RIFRPPHUFLDODQGPDQDJHPHQWUROHVOHDGLQJXSWR
DQGb0RQWHQHJUR*HQHUDOPDQDJHU5RPDQLDDQG0ROGRYD
JOREDOFXVWRPHUWHDPOHDGHULQZKHQKHRYHUVDZWKHJOREDO
2XWVLGHLQWHUHVWV1RH[WHUQDODSSRLQWPHQWV DFFRXQWPDQDJHPHQWRI'HOKDL]HDQGWKH(XURSHDQPDQDJHPHQW
3UHYLRXVUHOHYDQWH[SHULHQFH0U,PHOORVKHOGDQXPEHURI RIQHZFKDQQHOVLQFOXGLQJGLVFRXQWHUVVXFKDV$OGL/LGODQG'LD
QDQFHSRVLWLRQVLQWKH8.EDVHG(XURSHDQKHDGTXDUWHUVRI DQGFRQYHQLHQFHUHWDLOLQJVXFKDVSHWUROVWDWLRQV)URPWR
;HUR[LQFOXGLQJWKRVHRI(XURSHDQ0HUJHUV $FTXLVLWLRQV'LUHFWRU 0U%URXKDUGKHOGSRVLWLRQVDW$GLGDVLQFOXGLQJPDQDJLQJ
DQG)LQDQFH'LUHFWRURIWKH2FH(XURSH'LYLVLRQ+HPDQDJHG GLUHFWRU,WDO\DQG6RXWKHDVW(XURSHIURPXQWLOKHMRLQHGWKH
WKHQDQFLDOWD[DQGOHJDODVSHFWVRI;HUR[VVSRQVRUVKLSRIWKH *URXSLQb3ULRUWRWKDWKHZDVYLFHSUHVLGHQWIRUFRPPHUFLDO

Financial Statements
$WKHQV2O\PSLF*DPHVDVZHOODVWKHQDQFHIXQFWLRQRI RSHUDWLRQV(0($IURPWRDQGIURPWRRNWKHUROH
WKHFRPSDQ\VRSHUDWLRQVLQ*UHHFH+HLVD)HOORZRIWKH,QVWLWXWH RIPDQDJLQJGLUHFWRU,EHULDEDVHGLQ6SDLQZLWKUHVSRQVLELOLW\IRU
RIb&KDUWHUHG$FFRXQWDQWVLQ(QJODQGDQG:DOHVDQGVWDUWHGKLV 6SDLQDQG3RUWXJDO
FDUHHUDW(UQVW <RXQJ 1DWLRQDOLW\)UHQFK
1DWLRQDOLW\*UHHN 5. Keith Sanders,
3. Naya Kalogeraki, (56) Region Director: Armenia, Belarus, Estonia, Latvia,
*URXS&KLHI&XVWRPHUDQG&RPPHUFLDO2FHU Lithuania, Poland, Russian Federation, Ukraine and Moldova

6HQLRUPDQDJHPHQWWHQXUH$SSRLQWHG-XO\OHVVWKDQ\HDU 6HQLRUPDQDJHPHQWWHQXUH$SSRLQWHG$XJXVW\HDUV

3UHYLRXV*URXSUROHV'LUHFWRURI6WUDWHJ\&(2RFH 3UHYLRXV*URXSUROHV*HQHUDOPDQDJHURIWKH&RPSDQ\V
2XWVLGHLQWHUHVWV1RH[WHUQDODSSRLQWPHQWV
3UHYLRXVUHOHYDQWH[SHULHQFH0UV.DORJHUDNLMRLQHGWKH&RPSDQ\
LQIURP7KH&RFD&ROD&RPSDQ\ZKHUHVKHKHOGDQXPEHURI
PDUNHWLQJSRVLWLRQVXSWR0DUNHWLQJ0DQDJHU)URPVKHEXLOW
KHUFDUHHUDVVXPLQJUROHVRILQFUHDVHGVFDOHDQGVFRSHLQFOXGLQJ
0DUNHWLQJ'LUHFWRU7UDGH0DUNHWLQJ'LUHFWRU6DOHV'LUHFWRUDQG
&RXQWU\&RPPHUFLDO'LUHFWRU*UHHFH6KHKDVEHHQKHDYLO\LQYROYHG
LQ*URXSVWUDWHJLFSURMHFWVDQGWDVNIRUFHVDGGUHVVLQJPLVVLRQ
FULWLFDOEXVLQHVVLPSHUDWLYHV,Q6HSWHPEHU0UV.DORJHUDNL
ZDVDSSRLQWHGWRWKHUROHRI*HQHUDO0DQDJHU*UHHFHDQG&\SUXV
1DWLRQDOLW\*UHHN
COC016_.indb 77
RSHUDWLRQVLQ5XVVLD
Swiss Statutory Reporting
2XWVLGHLQWHUHVWV1RH[WHUQDODSSRLQWPHQWV
3UHYLRXVUHOHYDQWH[SHULHQFH3ULRUWRMRLQLQJWKH*URXS
0U6DQGHUVVSHQW\HDUVZLWKLQWKH&RFD&ROD6\VWHP+H
VWDUWHGKLVFDUHHUZLWK7KH&RFD&ROD&RPSDQ\LQDUHJLRQDO
PDUNHWLQJUROHZLWKLQWKH*XOI5HJLRQ,QKHZDVDSSRLQWHG
KXPDQUHVRXUFHVDQGWUDLQLQJPDQDJHUIRUWKH*XOI5HJLRQ,Q
KHDVVXPHGKLVUVWERWWOLQJJHQHUDOPDQDJHUUROHLQ%DKUDLQDQG
WKHQPRYHGWKURXJKDVHULHVRIODUJHUFRXQWU\JHQHUDOPDQDJHPHQW
UROHVXQWLOZKHQKHZDVDSSRLQWHGGLUHFWRUIRUERWWOLQJ
RSHUDWLRQVLQWKH(XUDVLD 0LGGOH(DVW'LYLVLRQZLWKUHVSRQVLELOLW\
IRU6DXGL$UDELD3DNLVWDQ8$(2PDQ%DKUDLQDQG4DWDU3ULRU
Supplementary Information
WRMRLQLQJWKH&RFD&ROD6\VWHP0U6DQGHUVVSHQWVL[\HDUVZLWK
3URFWHU b*DPEOHLQWKH8QLWHG6WDWHVLQDYDULHW\RIVDOHVDQG
PDUNHWLQJUROHV
1DWLRQDOLW\$PHULFDQ
3/16/17 2:35 PM
  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

6. Sotiris Yannopoulos, 9. Jan Gustavsson,

(49) Region Director: Austria, Czech Republic, Hungary, (51) General Counsel, Company Secretary and Director
Slovakia, Italy and Switzerland RIb6WUDWHJLF'HYHORSPHQW

6HQLRUPDQDJHPHQWWHQXUHb$SSRLQWHG-XO\\HDUV 6HQLRUPDQDJHPHQWWHQXUH$SSRLQWHG$XJXVW\HDUV
3UHYLRXV*URXSUROHV0U<DQQRSRXORVZDVJHQHUDOPDQDJHU
LQb6HUELDDQG0RQWHQHJURIURPWRDQGFRXQWU\JHQHUDO
PDQDJHULQ,WDO\IURPWR
2XWVLGHLQWHUHVWV1RH[WHUQDODSSRLQWPHQWV
3UHYLRXVUHOHYDQWH[SHULHQFH3ULRUWRMRLQLQJWKH*URXS
0Ub<DQQRSRXORVVSHQW\HDUVZRUNLQJDW3HSVL&RLQYDULRXVUROHV
+HDOVRVSHQWYH\HDUVZLWK6WDU)RRGVZKHUHKHZDVWKH(DVW
%DONDQV%8PDQDJHUDQGVHYHQ\HDUVZLWK7DVW\)RRGVLQ*UHHFH
ZKHUHKLVUROHVLQFOXGHGEXVLQHVVGHYHORSPHQWGLUHFWRUPDUNHWLQJ
DQGWUDGHPDUNHWLQJGLUHFWRUPDUNHWLQJPDQDJHUDQGJURXSEUDQG
PDQDJHU+HVWDUWHGKLVFDUHHUDVDQDVVLVWDQWSURGXFWPDQDJHU

3UHYLRXV*URXSUROHV0U*XVWDYVVRQVHUYHGDV'HSXW\*HQHUDO
&RXQVHOIRU&RFD&ROD%HYHUDJHVSOFIURP
2XWVLGHLQWHUHVWV1RH[WHUQDODSSRLQWPHQWV
3UHYLRXVUHOHYDQWH[SHULHQFH0U*XVWDYVVRQVWDUWHGKLVFDUHHU
LQbZLWKWKHODZUPRI:KLWH &DVHLQ6WRFNKROP6ZHGHQ
,QbKHMRLQHG7KH&RFD&ROD&RPSDQ\DV$VVLVWDQW'LYLVLRQ
&RXQVHOLQWKH1RUGLFDQG1RUWKHUQ(XUDVLD'LYLVLRQ)URP
WRb0U*XVWDYVVRQZDV6HQLRU$VVRFLDWHLQ:KLWH &DVHV
1HZb<RUNRFHSUDFWLFLQJVHFXULWLHVODZDQG0 $
1DWLRQDOLW\6ZHGLVK
86$6RXWK$IULFDZLWK&ROJDWH3DOPROLYH 10. Sanda Parezanovic,
(52) Group Human Resources Director
1DWLRQDOLW\*UHHN
7. Zoran Bogdanovic, 6HQLRUPDQDJHPHQWWHQXUH$SSRLQWHG-XQH\HDU
(45) Region Director: Bosnia and Herzegovina, Bulgaria, 3UHYLRXV*URXSUROHV0V3DUH]DQRYLFVSUHYLRXVUROHVLQWKH
Croatia, Cyprus, FYROM, Greece, Northern Ireland and *URXSLQFOXGH3XEOLF$DLUV &RPPXQLFDWLRQV0DQDJHU6HUELD
Republic of Ireland, Nigeria, Romania, Serbia (including DQG0RQWHQHJURIURPWR&RXQWU\+XPDQ5HVRXUFHV
WKHb5HSXEOLFRI.RVRYR6ORYHQLDDQG0RQWHQHJUR DQG3$ &0DQDJHU6HUELDDQG0RQWHQHJURIURPWRDQG
5HJLRQ+XPDQ5HVRXUFHV'LUHFWRU%RVQLD +HU]HJRYLQD%XOJDULD
6HQLRUPDQDJHPHQWWHQXUHb$SSRLQWHG-XQH\HDUV
3UHYLRXV*URXSUROHVb0U%RJGDQRYLFVSUHYLRXVUROHVLQFOXGH
PHPEHURIWKH)LQDQFHWHDPRI&RFD&ROD+%&&URDWLDIURP
WR&)2DQGWKHQJHQHUDOPDQDJHURIWKH&URDWLDQRSHUDWLRQV
IURPWR&RXQWU\JHQHUDOPDQDJHURI&RFD&ROD+%&
&URDWLDIURPWR&RXQWU\JHQHUDOPDQDJHUIRU&RFD&ROD
+%&6ZLW]HUODQGIURPWRDQG&RXQWU\JHQHUDOPDQDJHU
IRU&RFD&ROD+%&*UHHFHIURPWR
2XWVLGHLQWHUHVWV1RH[WHUQDODSSRLQWPHQWV
3UHYLRXVUHOHYDQWH[SHULHQFH0U%RJGDQRYLFVWDUWHGKLVFDUHHU
DVbDQDXGLWRUZLWK$UWKXU$QGHUVHQEHIRUHMRLQLQJ&RFD&ROD+%&
&URDWLDLQ
1DWLRQDOLW\&URDWLDQ
8. Marcel Martin,
(58) Group Supply Chain Director
&URDWLD&\SUXV)<520*UHHFH1RUWKHUQ,UHODQGWKH5HSXEOLFRI
,UHODQG0ROGRYD0RQWHQHJUR1LJHULD5RPDQLD6HUELDDQG6ORYHQLD
IURPWR
2XWVLGHLQWHUHVWVb1RH[WHUQDODSSRLQWPHQWV
3UHYLRXVUHOHYDQWH[SHULHQFHb0V3DUH]DQRYLFVWDUWHGLQ
DVPDUNHWUHVHDUFKHUDQGODWHUVWUDWHJLFSODQQHUZRUNLQJIRU
YDULRXVORFDOUHVHDUFKDQGPDUNHWLQJDJHQFLHVLQ6)5<XJRVODYLD
0V3DUH]DQRYLFMRLQHG6DDWFKL 6DDWFKL%DONDQVLQKROGLQJ
YDULRXVVHQLRUPDQDJHPHQWSRVLWLRQVLQVHYHUDO%DONDQFRXQWULHV
LQFOXGLQJ0DQDJLQJ'LUHFWRURIWZRVWDUWXSDJHQFLHVUVWLQ)<520
DQGODWHULQ6HUELD,QVKHbUHORFDWHGWR/RQGRQZKHUHVKH
ZRUNHGIRU6DDWFKL 6DDWFKLDQG0DUNHWLQJ'ULYHRQDQXPEHURI
SDQ(XURSHDQDQGEXVLQHVVGHYHORSPHQWSURMHFWVEHIRUHVKH
MRLQHGRXU*URXSLQ
1DWLRQDOLW\6HUELDQ

6HQLRUPDQDJHPHQWWHQXUH$SSRLQWHG-DQXDU\\HDUV
3UHYLRXV*URXSUROHV0U0DUWLQMRLQHGWKH*URXSLQKROGLQJ
SRVLWLRQVZLWKLQFUHDVLQJUHVSRQVLELOLW\LQWKHVXSSO\FKDLQDQG
FRPPHUFLDOIXQFWLRQV6LQFH0U0DUWLQKDVKHOGJHQHUDO
PDQDJHPHQWDVVLJQPHQWVLQVHYHUDORIRXUPDUNHWVLQFOXGLQJDV
*HQHUDO0DQDJHUIRU(DVWHUQ5RPDQLD5HJLRQDO0DQDJHU5XVVLD
&RXQWU\*HQHUDO0DQDJHU8NUDLQHDQG*HQHUDO0DQDJHU1LJHULD
0Ub0DUWLQEHFDPH*HQHUDO0DQDJHURIRXU,ULVKRSHUDWLRQVLQ
DQGLVQRZRXU*URXS6XSSO\&KDLQ'LUHFWRU
2XWVLGHLQWHUHVWVb1RH[WHUQDODSSRLQWPHQWV
1DWLRQDOLW\5RPDQLDQ

COC016_.indb 78 3/16/17 2:35 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
2SHUDWLQJ&RPPLWWHH

.H\DFWLYLWLHVDQGGHFLVLRQVLQ

/RQJWHUPGLUHFWLRQ %XVLQHVVSODQQLQJ 5LVNVDIHW\

VHWWLQJ
'HQLQJ*URXSVWUDWHJLFSULRULWLHV
DQGbSHUIRUPDQFHSDUDPHWHUV
5HYLHZLQJDQGDGMXVWLQJWKH
*URXSVUHYHQXHJURZWK
PDQDJHPHQWIUDPHZRUN
(VWDEOLVKLQJWKH*URXSVVXVWDLQDELOLW\
SULRULWLHVDQGFRPPLWPHQWVIRUWKH
QH[WYH\HDUSHULRG
(YDOXDWLQJDQGXSGDWLQJWKH*URXSV
ORQJUDQJHEXVLQHVVSODQ
5HYLHZLQJDQGDSSURYLQJDQQXDO
EXVLQHVVSODQVIRUIRUDOO
RSHUDWLRQVDQGFHQWUDOIXQFWLRQV
$SSURYLQJ*URXSDQGFRXQWU\
WDOHQWFDSDELOLWLHVGHYHORSPHQWDQG
VXFFHVVLRQSODQV
Corporate Governance
EXVLQHVVbUHVLOLHQFH
(YDOXDWLQJWKH*URXSVEXVLQHVV
UHVLOLHQFHVWUDWHJLHV
5HYLHZLQJWKH*URXSVKHDOWK
DQGbVDIHW\SROLFLHVDQG
PDWHULDOLQFLGHQWV

Financial Statements
%XVLQHVVFDVHUHYLHZV 3ROLF\IRUPXODWLRQ 3ULRULW\SURMHFWV
DQGDSSURYDOV UHYLHZV 5HYHQXHJURZWKPDQDJHPHQW
6WUDWHJLFWUDQVIRUPDWLRQRIWKH &RPPHUFLDOSROLF\ 5RXWHWRPDUNHW
VXSSO\FKDLQKXPDQUHVRXUFHV +XPDQULJKWVSROLF\ 5HQHZLQJFDWHJRU\JURZWK
FRPPHUFLDODQGEXVLQHVVVROXWLRQV
DQGV\VWHPVGHSDUWPHQWV (QJDJHPHQW
2SWLPLVDWLRQRIWKH*URXSVORJLVWLFV
DQGPDQXIDFWXULQJLQIUDVWUXFWXUH
'HYHORSPHQWRIWKHVKDUHGVHUYLFHV
RUJDQLVDWLRQDQGLWVH[SDQVLRQWR

Swiss Statutory Reporting

1LJHULDDQG5XVVLD

Supplementary Information

COC016_.indb 79 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

$XGLWDQG5LVN&RPPLWWHH5HSRUW
Dear Shareholder
7KH$XGLWDQG5LVN&RPPLWWHHIRFXVHGLWVZRUNGXULQJ
RQHQKDQFLQJDQGVWUHQJWKHQLQJWKH*URXSVH[LVWLQJQDQFLDO
FRQWUROVDQGULVNPDQDJHPHQWDQGFRPSOLDQFHV\VWHPVZKLFK
WKH%RDUGUHFRJQLVHVDVHVVHQWLDOFRPSRQHQWVRIHHFWLYH
FRUSRUDWHJRYHUQDQFH
$VLJQLFDQWDPRXQWRIWLPHZDVLQYHVWHGLQVWUHDPOLQLQJDQG
FHQWUDOLVLQJWKH*URXSVDXGLWIXQFWLRQ7KLVSURFHVVUHTXLUHGDQ
RQJRLQJGLDORJXHZLWKWKHH[WHUQDODXGLWRUVIRUWKH*URXSWRPDNH
GHFLVLRQVUHJDUGLQJWKHVFRSHRIXVHIRUQHZWHFKQRORJLHVDQG
WKHEHVWUROHIRUWKHLQWHUQDODXGLWIXQFWLRQLQQDOLVLQJWKHDXGLWRI
WKH*URXS
'XULQJWKH$XGLWDQG5LVN&RPPLWWHHDOVRZRUNHGFORVHO\
ZLWKbWKHLQWHUQDODXGLWGHSDUWPHQWLQLPSOHPHQWLQJWKHQHZLQWHUQDO WKHFKDOOHQJHVWKHEXVLQHVVIDFHGGXULQJWKH\HDUDQGHQVXUHGWKDW
FRQWUROIUDPHZRUNODXQFKLQJDQHZREVHUYDWLRQGDWDEDVHDQG ZHKDYHDZHOOGHQHGIUDPHZRUNIRUQDQFLDOFRQWUROVDQGULVN
GHYHORSLQJDQHZ&RGHRI%XVLQHVV&RQGXFWHOHDUQLQJWRRODQG PDQDJHPHQWWKDWPHHWVEHVWSUDFWLFHVWDQGDUGV
UHYLHZLQJWKH*URXSVDXGLWSODQIRU,WDOVRFORVHO\
PRQLWRUHGWKHZRUNRIWKHEXVLQHVVUHVLOLHQFHIXQFWLRQKHDGHG
E\WKH*URXS&KLHI5LVN2FHUZKLFKLVGHVFULEHGPRUHIXOO\RQ
SDJHVb
7KH$XGLWDQG5LVN&RPPLWWHH5HSRUWGHVFULEHVLQPRUHGHWDLOWKH
ZRUNDQGWKHDFKLHYHPHQWVRIWKH$XGLWDQG5LVN&RPPLWWHHGXULQJ William W. (Bill) Douglas III
DQGZHDUHSURXGWRUHSRUWWKDWWKH&RPPLWWHHDGGUHVVHG Committee Chair

5ROHDQGUHVSRQVLELOLWLHV
7KH$XGLWDQG5LVN&RPPLWWHHPRQLWRUVWKHHHFWLYHQHVVRIRXU
QDQFLDOUHSRUWLQJLQWHUQDOFRQWURODQGULVNPDQDJHPHQWV\VWHPV
DQGSURFHVVHV7KHUROHRIWKH$XGLWDQG5LVN&RPPLWWHHLVVHWRXW
LQWKHFKDUWHUIRUWKHFRPPLWWHHVRIWKH%RDUGRI'LUHFWRUVLQ$QQH[
&WRWKH&RPSDQ\V2UJDQLVDWLRQDO5HJXODWLRQV7KLVLVDYDLODEOHDW
KWWSFRFDFRODKHOOHQLFFRPHQDERXWXVFRUSRUDWHJRYHUQDQFH
FRUSRUDWHJRYHUQDQFHRYHUYLHZ
7KHNH\UHVSRQVLELOLWLHVRIDQGHOHPHQWVRIWKH$XGLWDQG5LVN
&RPPLWWHHVUROHDUHVHWRXWRQSDJH
Members 0HPEHUVKLSVWDWXV
UHVLJQHGDVDPHPEHURIWKH%RDUGDQGPHPEHUDQGFKDLUPDQRI
WKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH
7KH%RDUGFRQVLGHUVWKDW0HVVUV%LOO'RXJODVDQG-RKQ6HFKL
SRVVHVVUHFHQWDQGUHOHYDQWQDQFLDOH[SHULHQFHDVRXWOLQHGLQ
WKH8.&RUSRUDWH*RYHUQDQFH&RGH$VGHVFULEHGRQSDJH
0U%LOO'RXJODVZDVIRUPHUO\([HFXWLYH9LFH3UHVLGHQWDQG&KLHI
)LQDQFLDO2FHUDQG([HFXWLYH9LFH3UHVLGHQW6XSSO\&KDLQRI
&RFD&ROD(QWHUSULVHVDQG0U6HFKLKDVKHOGYDULRXVDXGLWDQG
QDQFLDOSRVLWLRQV
7KH&KLHI)LQDQFLDO2FHUDVZHOODVWKH*HQHUDO&RXQVHOH[WHUQDO
DXGLWRUVWKH'LUHFWRURI,QWHUQDO$XGLWDQGWKH*URXS&KLHI
0U:LOOLDP:%LOO'RXJODV,,, 0HPEHUVLQFH $FFRXQWDQWQRUPDOO\DWWHQGDOOPHHWLQJVRIWKH$XGLWDQG5LVN
&KDLUPDQ &KDLUPDQVLQFH &RPPLWWHH2WKHURFHUVDQGHPSOR\HHVDUHLQYLWHGWRDWWHQG
PHHWLQJVZKHQDSSURSULDWH7KH'LUHFWRURI,QWHUQDO$XGLWDQG
0U-RKQ36HFKL 0HPEHUVLQFH
VHSDUDWHO\WKHH[WHUQDODXGLWRUVPHHWUHJXODUO\ZLWKWKH$XGLWDQG
0UV2OXVROD6ROD'DYLG%RUKD 0HPEHUVLQFH
5LVN&RPPLWWHHZLWKRXWWKHSUHVHQFHRIPDQDJHPHQWWRGLVFXVV
WKHDGHTXDF\RILQWHUQDOFRQWUROVRYHUQDQFLDOUHSRUWLQJDQGDQ\
7KH$XGLWDQG5LVN&RPPLWWHHFRPSULVHVWKUHHLQGHSHQGHQWQRQ RWKHUPDWWHUVGHHPHGUHOHYDQWWRbWKH$XGLWDQG5LVN&RPPLWWHH
([HFXWLYH'LUHFWRUV0U%LOO'RXJODVFKDLUPDQ0UV2OXVROD6ROD
'DYLG%RUKDDQG0U-RKQ36HFKLZKRZHUHDSSRLQWHGE\WKH
%RDUGIRUDRQH\HDUWHUPRQ-XQH0U1LJHO0DFGRQDOG

COC016_.indb 80 3/16/17 2:35 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
:RUNDQGDFWLYLWLHV PDWWHUVDULVLQJXQGHUWKH*URXSV&RGHRI%XVLQHVV&RQGXFWDQG
WKHDFWLRQVWDNHQWRDGGUHVVDQ\LGHQWLHGLVVXHV
7KH$XGLWDQG5LVN&RPPLWWHHPHWHLJKWWLPHVGXULQJ
DQGGLVFKDUJHGWKHUHVSRQVLELOLWLHVGHQHGXQGHU$QQH[&RI UHYLVLRQVWRDQGFRPSOLDQFHZLWKWUHDVXU\SROLFLHVLQFOXGLQJULVN
WKH2UJDQLVDWLRQDO5HJXODWLRQV7KHZRUNRIWKH$XGLWDQG5LVN OLPLWVKHGJLQJSURJUDPPHVDQGFRXQWHUSDUW\OLPLWV
&RPPLWWHHGXULQJWKHDFFRXQWLQJ\HDULQFOXGHGFRQVLGHUDWLRQRI WKHJHRSROLWLFDOGHYHORSPHQWVLQ*UHHFH5XVVLD8NUDLQHDQG
WKHDQQXDOQDQFLDOVWDWHPHQWVDQGWKHDQQXDOQDQFLDOUHSRUWIRU 1LJHULDDQGWKHLULPSOLFDWLRQVIRUWKH*URXSVRSHUDWLRQV
WKH\HDUHQGHG'HFHPEHUSULRUWRWKHLUVXEPLVVLRQWR UHJXODUUHSRUWVRQTXDOLW\DVVXUDQFHKHDOWKDQGVDIHW\

Corporate Governance
WKH%RDUGIRUDSSURYDOLQFOXGLQJFRQVLGHUDWLRQRIWKH*URXSRQD HQYLURQPHQWDOSURWHFWLRQDVVHWSURWHFWLRQWUHDVXU\DQG
JRLQJFRQFHUQEDVLVDQGFRPSOLDQFHZLWK*URXSSROLFLHV QDQFLDOULVNVVHFXULW\DQGVHFXULW\HQWHUSULVHULVNPDQDJHPHQW
WKHLQWHULPQDQFLDOVWDWHPHQWVDQGLQWHULPUHVXOWV SURFHVVHVDQG
DQQRXQFHPHQWIRUWKHVL[PRQWKSHULRGHQGLQJ-XO\SULRU WKHUHVXOWVRIWKH$XGLWDQG5LVN&RPPLWWHHVHOI
WRWKHLUVXEPLVVLRQWRWKH%RDUGIRUDSSURYDO DVVHVVPHQWSURFHVV
WKHWUDGLQJXSGDWHVIRUWKHWKUHHPRQWKSHULRGHQGHG$SULO
([WHUQDODXGLWRUV
DQGWKHQLQHPRQWKSHULRGHQGHG6HSWHPEHU
3ULFHZDWHUKRXVH&RRSHUV$*%LUFKVWUDVVH&+=XULFK
DUHDVRIVLJQLFDQFHLQWKHSUHSDUDWLRQRIWKHQDQFLDO
6ZLW]HUODQG3Z&$*KDVEHHQHOHFWHGE\WKHVKDUHKROGHUVDV
VWDWHPHQWVLQFOXGLQJ
WKHVWDWXWRU\DXGLWRUIRUWKH*URXSVVWDWXWRU\FRQVROLGDWHGDQG
FULWLFDODFFRXQWLQJMXGJHPHQWVDQGHVWLPDWHVWKDWDHFWWKH VWDQGDORQHQDQFLDOVWDWHPHQWV6LJQLQJSDUWQHUIRUWKHVWDWXWRU\

Financial Statements
UHSRUWHGDPRXQWVRIDVVHWVOLDELOLWLHVUHYHQXHVDQGH[SHQVHV QDQFLDOVWDWHPHQWVRQEHKDOIRI3Z&$*LV0LNH)ROH\ZKRKDV
DQGWKHGLVFORVXUHRIFRQWLQJHQWDVVHWVDQGOLDELOLWLHVLQWKH KHOGVXFKUROHIRUWKHUVWWLPHZLWKUHVSHFWWRWKH\HDUHQGHG
FRQVROLGDWHGQDQFLDOVWDWHPHQWVGHWDLOHGLQ1RWHVDQG 'HFHPEHU
WRWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
7KH%RDUGRI'LUHFWRUVKDVUHWDLQHG3ULFHZDWHUKRXVH&RRSHUV6$
FRQWLQJHQFLHVOHJDOSURFHHGLQJVFRPSHWLWLRQODZDQG
UHJXODWRU\SURFHGXUHVLQFOXGLQJFDVHVLQYROYLQJWKHQDWLRQDO
FRPSHWLWLRQDXWKRULWLHVRI*UHHFHDQG6ZLW]HUODQGDQG
OLWLJDWLRQPDWWHUVLQ1LJHULD5XVVLD,WDO\DQG*UHHFHDQGWKH
LPSDFWRIWKHVHRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDQG
DFFRPSDQ\LQJQRWHV UROHIRUIRXU\HDUV
WKHLPSDLUPHQWWHVWLQJRIJRRGZLOODQGLQGHQLWHOLYHG
LQWDQJLEOHDVVHWVZLWKDSDUWLFXODUHPSKDVLVRQUHYLHZLQJDQG
FKDOOHQJLQJWKHNH\DVVXPSWLRQVXVHGLQWKHYDOXHLQXVH
FDOFXODWLRQDQGWKHVHQVLWLYLW\DQDO\VLVSHUIRUPHGIRUWKH
PDWHULDORSHUDWLRQVZLWKUHGXFHGQDQFLDOKHDGURRP7KHVH
DVVXPSWLRQVDQGDGLVFXVVLRQRIKRZWKH\DUHHVWDEOLVKHGDV
ZHOODVWKHVHQVLWLYLW\DQDO\VLVDUHGHVFULEHGLQ1RWHWRWKH
FRQVROLGDWHGQDQFLDOVWDWHPHQWVDQG
UHSRUWVIURPWKHH[WHUQDODXGLWRUVRQWKHDQQXDODQGLQWHULP
QDQFLDOVWDWHPHQWVDSSURYDORIWKHH[WHUQDODXGLWSODQDQG
SUHDSSURYDORIDXGLWIHHVIRU
WKHLQWHUQDOFRQWUROHQYLURQPHQWSULQFLSDOULVNVDQGULVN
PDQDJHPHQWV\VWHPVDQGWKH*URXSVVWDWHPHQWRQWKH
HHFWLYHQHVVRILWVLQWHUQDOFRQWUROVSULRUWRHQGRUVHPHQWE\
WKH%RDUG
UHYLHZDQGDSSURYDORIWKHLQWHUQDODXGLWSODQTXDUWHUO\UHSRUWV
RQWKHUHVXOWVRILQWHUQDODXGLWZRUNDQGDQLQWHUQDODQGH[WHUQDO
LQGHSHQGHQWTXDOLW\DVVHVVPHQWRIWKHLQWHUQDODXGLWIXQFWLRQ
LQbDFFRUGDQFHZLWKWKH,QVWLWXWHRI,QWHUQDO$XGLWRUV$WWULEXWH
6WDQGDUGLQFOXGLQJWKHIROORZLQJ
UHDVVHVVPHQWRIRYHUDOOQDQFLDOULVNPDQDJHPHQWRI
WKH*URXSVRSHUDWLRQVDQGUHYLHZRILQWHUQDOQDQFLDO
FRQWUROSURFHGXUHV ZLWKHHFWIURP'HFHPEHU&XUUHQWO\WKH$XGLWDQG5LVN
UHYLHZRIUHJXODWRU\FKDQJHVDQGGHYHORSPHQWVDQGLPSDFW
RQbULVNPDQDJHPHQWSURFHVVHV
UHYLHZDQGDSSURYDORIFKDQJHVWRWKHFRUSRUDWHDXGLW
GHSDUWPHQWLQFOXGLQJWUDLQLQJDQGGHYHORSPHQWSURJUDPPHV
COC016_.indb 81
.LVVLDV$YHQXH+DODQGUL*UHHFH3Z&6$DQDOLDWH
RI3Z&$*WRDFWDVWKH*URXSVLQGHSHQGHQWUHJLVWHUHGSXEOLF
DFFRXQWLQJUPIRUWKHSXUSRVHVRIUHSRUWLQJXQGHUWKH8.UXOHVIRU
WKH\HDUHQGHG'HFHPEHU6LJQLQJSDUWQHUIRUWKHQDQFLDO
VWDWHPHQWVRQEHKDOIRI3Z&6$LV0DULRV3VDOWLVZKRKDVKHOGVXFK
7KHDSSRLQWPHQWRI3Z&KDVEHHQDSSURYHGE\WKHVKDUHKROGHUV
Swiss Statutory Reporting
XQWLOWKHQH[W$QQXDO*HQHUDO0HHWLQJE\ZD\RIDGYLVRU\YRWH3Z&
UHIHUVWR3Z&$*RU3Z&6$DVDSSOLFDEOHLQWKLV$QQXDO5HSRUW
'XULQJWKHDFFRXQWLQJSHULRGWKHPHPEHUVRIWKH$XGLWDQG5LVN
&RPPLWWHHPHWVHSDUDWHO\ZLWK3Z&RQDUHJXODUEDVLVDQGWKH
$XGLWDQG5LVN&RPPLWWHHWRRNDQDFWLYHUROHLQUHYLHZLQJWKHVFRSH
RIWKHDXGLWWKHLQGHSHQGHQFHREMHFWLYLW\DQGHHFWLYHQHVVRI
3Z&DQGWKHQHJRWLDWLRQVUHODWLQJWRDXGLWIHHV7KH$XGLWDQG
5LVN&RPPLWWHHDOVRPHWZLWKWKHPDQDJHPHQWWHDPZKLFKOHG
WKHGLVFXVVLRQVZLWK3Z&LQFOXGLQJWKH'LUHFWRURI,QWHUQDO$XGLW
WRGLVFXVVWKHSHUIRUPDQFHRI3Z&ZLWKRXW3Z&EHLQJSUHVHQW
)ROORZLQJWKLVUHYLHZSURFHVVWKH$XGLWDQG5LVN&RPPLWWHHKDV
Supplementary Information
UHFRPPHQGHGWRWKH%RDUGWKDWDSURSRVDOWRUHDSSRLQW3Z&EH
SXWbWRDVKDUHKROGHUVYRWHDWWKHQH[W$QQXDO*HQHUDO0HHWLQJ
3Z&KDVDFWHGDVWKH*URXSVVROHH[WHUQDODXGLWRUVLQFH
7KHb&RPSDQ\UDQDFRPSHWLWLYHWHQGHUIRUWKHH[WHUQDODXGLWRU
VHUYLFHVLQZKLFKZDVRYHUVHHQE\WKH$XGLWDQG5LVN
&RPPLWWHH)ROORZLQJWKHHYDOXDWLRQRIWKHSURSRVDOVWKH$XGLW
DQGb5LVN&RPPLWWHHFRQFOXGHGLQWKDWWKHEHVWLQWHUHVWVRI
WKHb*URXSDQGLWVVKDUHKROGHUVZRXOGEHVHUYHGE\UHWDLQLQJ3Z&
DVbH[WHUQDODXGLWRUDQGPDGHVXFKUHFRPPHQGDWLRQWRWKH%RDUG
3Z&ZDVUHDSSRLQWHGE\WKH%RDUGDVWKH*URXSVH[WHUQDODXGLWRU
&RPPLWWHHDQWLFLSDWHVWKDWWKHDXGLWFRQWUDFWZLOOEHSXWRXWWR
WHQGHUDJDLQLQ7KHUHDUHQRFRQWUDFWXDORURWKHUREOLJDWLRQV
UHVWULFWLQJWKH*URXSVFKRLFHRIH[WHUQDODXGLWRU
3/16/17 2:35 PM
  Coca-Cola HBC
2016 Integrated Annual Report
&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG
1RQDXGLWVHUYLFHVE\WKHH[WHUQDODXGLWRUV
7KH$XGLWDQG5LVN&RPPLWWHHFRQVLGHUVWKHLQGHSHQGHQFHLQ
ERWKIDFWDQGDSSHDUDQFHRIWKHH[WHUQDODXGLWRUVDVFULWLFDODQG
KDVORQJKDGDQDXGLWRULQGHSHQGHQFHSROLF\SURYLGLQJGHQLWLRQV
RIWKHVHUYLFHVWKDWWKHH[WHUQDODXGLWRUVPD\DQGPD\QRWSURYLGH
7KHSROLF\UHTXLUHVWKH$XGLWDQG5LVN&RPPLWWHHVSUHDSSURYDO
RIDOODXGLWDQGSHUPLVVLEOHQRQDXGLWVHUYLFHVSURYLGHGE\WKH
H[WHUQDODXGLWRUV6XFKVHUYLFHVLQFOXGHDXGLWZRUNGLUHFWO\UHODWHG
WRDXGLWDQGFHUWDLQWD[DQGRWKHUVHUYLFHVDVIXUWKHUH[SODLQHG
EHORZ,QSUDFWLFHWKH$XGLWDQG5LVN&RPPLWWHHDSSOLHVWKHSROLF\
UHVWULFWLYHO\DQGDSSURYDOIRUZRUNRWKHUWKDQDXGLWDQGDXGLWUHODWHG
VHUYLFHVLVUDUHO\JUDQWHG
8QGHUWKHSROLF\SUHDSSURYDOPD\EHSURYLGHGIRUZRUNDVVRFLDWHG
ZLWKVWDWXWRU\RURWKHUQDQFLDODXGLWZRUNXQGHU,)56RUDFFRUGLQJ
WRORFDOVWDWXWRU\UHTXLUHPHQWVDWWHVWDWLRQVHUYLFHVQRWUHTXLUHGE\
VWDWXWHRUUHJXODWLRQDFFRXQWLQJDQGQDQFLDOUHSRUWLQJFRQVXOWDWLRQ
DQGUHVHDUFKZRUNQHFHVVDU\WRFRPSO\ZLWKJHQHUDOO\DFFHSWHG
DFFRXQWLQJDQGDXGLWLQJVWDQGDUGVLQWHUQDOFRQWUROUHYLHZVDQG
DVVLVWDQFHZLWKLQWHUQDOFRQWUROUHSRUWLQJUHTXLUHPHQWVUHYLHZ
RILQIRUPDWLRQV\VWHPVVHFXULW\DQGFRQWUROVWD[FRPSOLDQFH
DQGUHODWHGWD[VHUYLFHVH[FOXGLQJDQ\WD[VHUYLFHVSURKLELWHG
E\UHJXODWRU\RURWKHURYHUVLJKWDXWKRULWLHVH[SDWULDWHVDQG
RWKHULQGLYLGXDOWD[VHUYLFHVDQGDVVLVWDQFHDQGFRQVXOWDWLRQ
RQTXHVWLRQVUDLVHGE\UHJXODWRU\DJHQFLHV)RUHDFKSURSRVHG
VHUYLFHWKHH[WHUQDODXGLWRULVUHTXLUHGWRSURYLGHGHWDLOHGEDFNXS
GRFXPHQWDWLRQDWWKHWLPHRIDSSURYDOWRSHUPLWWKH$XGLWDQG
5LVN&RPPLWWHHWRPDNHDGHWHUPLQDWLRQZKHWKHUWKHSURYLVLRQRI
VXFKVHUYLFHVZRXOGLPSDLUWKHH[WHUQDODXGLWRUVLQGHSHQGHQFH
3Z&KDVFRPSOLHGZLWKWKHSROLF\IRUWKHQDQFLDO\HDUHQGHGRQ
'HFHPEHUDQGWKHUHKDYHEHHQQRFKDQJHVWRWKHSROLF\
GXULQJWKH\HDU
$XGLWIHHVDQGDOORWKHUIHHV
$XGLWIHHV
7KHWRWDOIHHVIRUDXGLWVHUYLFHVSDLGWR3Z&DQGDOLDWHVZHUH
DSSUR[LPDWHO\PLOOLRQIRUWKH\HDUHQGHG'HFHPEHU
FRPSDUHGWRDSSUR[LPDWHO\PLOOLRQIRUWKH\HDUHQGHG
'HFHPEHU7KHWRWDOIHHVIRULQFOXGHIHHVDVVRFLDWHG
ZLWKWKHDQQXDODXGLWDQGUHYLHZVRIWKH*URXSVKDOI\HDUUHSRUWV
SUHSDUHGLQDFFRUGDQFHZLWK,)56DQGORFDOVWDWXWRU\DXGLWV
$XGLWUHODWHGIHHV
)HHVIRUDXGLWUHODWHGVHUYLFHVSDLGWR3Z&DQGDOLDWHVIRUWKH
\HDUHQGHG'HFHPEHUZHUHPLOOLRQFRPSDUHGWR
PLOOLRQIRUWKH\HDUHQGHG'HFHPEHU
7D[IHHV
)HHVIRUWD[VHUYLFHVWR3:&DQGDOLDWHVIRUWKH\HDUHQGHG
'HFHPEHUZHUHPLOOLRQFRPSDUHGWRPLOOLRQIRU
WKH\HDUHQGHG'HFHPEHU
COC016_.indb 82
$OORWKHUIHHV
)HHVIRUQRQDXGLWVHUYLFHVSDLGWR3Z&RUDOLDWHVIRUWKH\HDU
HQGHG'HFHPEHUZHUHPLOOLRQUHSUHVHQWLQJRI
WKHWRWDODPRXQWRIDXGLWIHHVSDLGWR3Z&DQGDOLDWHVIRUWKH
\HDUHQGHG'HFHPEHU7KHUHZHUHQRIHHVIRUQRQDXGLW
VHUYLFHVWR3Z&RUDOLDWHVIRUWKH\HDUHQGHG'HFHPEHU
5LVNPDQDJHPHQW
'XULQJWKH&RPSDQ\FRQWLQXHGWRUHYLVHDQGVWUHQJWKHQLWV
DSSURDFKWRULVNPDQDJHPHQWDVGHVFULEHGLQGHWDLORQSDJH
7KHSULPDU\DLPRIWKLVIUDPHZRUNLVWRPLQLPLVHRXUH[SRVXUHDQG
HQVXUHWKDWWKHQDWXUHDQGVLJQLFDQFHRIDOOULVNVZHDUHIDFLQJ
DUHSURSHUO\LGHQWLHGUHYLHZHGPDQDJHGDQGZKHUHQHFHVVDU\
HVFDODWHG$TXDUWHUO\ULVNDVVHVVPHQWLVXQGHUWDNHQE\WKH
FRXQWULHVDQGFRUSRUDWHRFHVXSSRUWIXQFWLRQVDQGVLJQLFDQW
ULVNVDUHWKHQUHSRUWHGWRWKH5HJLRQ'LUHFWRUVDQGWKH&KLHI5LVN
2FHU7KH&RPSDQ\V*URXS5LVN)RUXPUHYLHZVWKHLGHQWLHG
ULVNVELDQQXDOO\DQGSUHVHQWVLVVXHVRIFULWLFDOH[SRVXUHWRWKH
2SHUDWLQJ&RPPLWWHH7KHODWWHUDIWHUFDUHIXOUHYLHZUHSRUWVWRWKH
$XGLWDQG5LVN&RPPLWWHHPDWHULDOULVNVDQGPLWLJDWLQJDFWLRQV7KLV
SURFHVVLVERWKWRSGRZQDQGERWWRPXSDQGLVGHVLJQHGWRHQVXUH
WKDWULVNVDULVLQJIURPEXVLQHVVDFWLYLWLHVDUHDSSURSULDWHO\PDQDJHG
)LQDOO\ZHKDYHLQSODFHWKLUGSDUW\LQVXUDQFHWRFRYHUUHVLGXDO
LQVXUDEOHULVNH[SRVXUHVXFKDVSURSHUW\GDPDJHEXVLQHVV
LQWHUUXSWLRQDQGOLDELOLW\SURWHFWLRQLQFOXGLQJ'LUHFWRUVDQGRFHUV
LQVXUDQFHIRURXU'LUHFWRUVDQGRFHUVDVZHOODVIRUWKHRFHUVDQG
GLUHFWRUVRIFHUWDLQVXEVLGLDULHV
,QWHUQDOFRQWURO
7KH%RDUGKDVXOWLPDWHUHVSRQVLELOLW\IRUHQVXULQJWKDWWKH&RPSDQ\
KDVDGHTXDWHV\VWHPVRIQDQFLDOFRQWURO6\VWHPVRIQDQFLDO
FRQWUROFDQSURYLGHRQO\UHDVRQDEOHDQGQRWDEVROXWHDVVXUDQFH
DJDLQVWPDWHULDOPLVVWDWHPHQWVRUORVV,QFHUWDLQRIWKHFRXQWULHVLQ
ZKLFKZHRSHUDWHRXUEXVLQHVVHVDUHH[SRVHGWRDKHLJKWHQHGULVN
RIORVVGXHWRIUDXGDQGFULPLQDODFWLYLW\:HUHYLHZRXUV\VWHPVRI
QDQFLDOFRQWUROUHJXODUO\LQRUGHUWRPLQLPLVHVXFKORVVHV
7KH%RDUGKDVDGRSWHGDFKDUWRIDXWKRULW\GHQLQJQDQFLDODQG
RWKHUDXWKRULVDWLRQOLPLWVDQGVHWWLQJSURFHGXUHVIRUDSSURYLQJ
FDSLWDODQGLQYHVWPHQWH[SHQGLWXUH7KH%RDUGDOVRDSSURYHV
GHWDLOHGDQQXDOEXGJHWV,WVXEVHTXHQWO\UHYLHZVTXDUWHUO\
SHUIRUPDQFHDJDLQVWWDUJHWVVHWIRUWKLQWKHVHSODQVDQGEXGJHWV
$bNH\IRFXVRIWKHQDQFLDOPDQDJHPHQWVWUDWHJ\LVWKHSURWHFWLRQ
RIRXUHDUQLQJVVWUHDPDQGPDQDJHPHQWRIRXUFDVKRZ
7KH%RDUGDQGLWVFRPPLWWHHVKDYHFRQGXFWHGDQDQQXDOUHYLHZ
RIWKHHHFWLYHQHVVRIRXUULVNPDQDJHPHQWV\VWHPDQGLQWHUQDO
FRQWUROV\VWHPVLQDFFRUGDQFHZLWKWKH8.&RUSRUDWH*RYHUQDQFH
&RGH3DUWRIWKLVUHYLHZLQYROYHVUHJXODUUHYLHZRIRXUQDQFLDO
RSHUDWLRQDODQGFRPSOLDQFHFRQWUROVE\WKH$XGLWDQG5LVN
&RPPLWWHHZKLFKWKHQUHSRUWVEDFNWRWKH%RDUGRQLWVZRUN
DQGQGLQJVDVGHVFULEHGDERYH7KH%RDUGFRQUPVWKDWLWKDV
FRQFOXGHGWKDWRXUULVNPDQDJHPHQWDQGLQWHUQDOFRQWUROV\VWHPV
DUHHHFWLYH
3/16/17 2:35 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

,QWHUQDODXGLW
2XULQWHUQDODXGLWIXQFWLRQUHSRUWVGLUHFWO\WRWKH$XGLWDQG5LVN
&RPPLWWHHZKLFKUHYLHZVDQGDSSURYHVWKHLQWHUQDODXGLWSODQIRU
HDFK\HDU7KHLQWHUQDODXGLWIXQFWLRQFRQVLVWVRIDSSUR[LPDWHO\
IXOOWLPHSURIHVVLRQDObDXGLWVWDEDVHGLQ$WKHQV%XGDSHVW6RD
0RVFRZDQG/DJRVFRYHULQJDUDQJHRIGLVFLSOLQHVDQGEXVLQHVV
H[SHUWLVH2QHRIWKHUHVSRQVLELOLWLHVRIWKHLQWHUQDODXGLWIXQFWLRQ
Strategic Report
'LVFORVXUH&RPPLWWHH
$'LVFORVXUH&RPPLWWHHKDVEHHQHVWDEOLVKHGDQGGLVFORVXUH
FRQWUROVDQGSURFHGXUHVKDYHEHHQDGRSWHGWRHQVXUHWKHDFFXUDF\
DQGFRPSOHWHQHVVRIRXUSXEOLFGLVFORVXUHV7KH'LVFORVXUH
&RPPLWWHHLVFRPSRVHGRIWKH&KLHI)LQDQFLDO2FHUWKH
*HQHUDO&RXQVHOWKH'LUHFWRURI,QYHVWRU5HODWLRQVDQGWKH*URXS
&KLHI$FFRXQWDQW

LVWRbFRQUPWRWKH%RDUGWKHHHFWLYHRSHUDWLRQRIRXULQWHUQDO
FRQWUROIUDPHZRUN)RUWKLVSXUSRVHWKH'LUHFWRURI,QWHUQDO$XGLW
PDNHVTXDUWHUO\SUHVHQWDWLRQVWRWKH$XGLWDQG5LVN&RPPLWWHH
DQGPHHWVUHJXODUO\ZLWKWKH$XGLWDQG5LVN&RPPLWWHHZLWKRXWWKH
SUHVHQFHRIRXUPDQDJHPHQW
,QDGGLWLRQWKHLQWHUQDODXGLWIXQFWLRQUHYLHZVWKHLQWHUQDO
QDQFLDORSHUDWLRQDODQGFRPSOLDQFHFRQWUROV\VWHPVDFURVVDOO
WKHMXULVGLFWLRQVLQZKLFKZHRSHUDWHDQGUHSRUWVLWVQGLQJVWR
PDQDJHPHQWDQGWKH$XGLWDQG5LVN&RPPLWWHHRQDUHJXODUEDVLV
7KHLQWHUQDODXGLWIXQFWLRQIRFXVHVLWVZRUNRQWKHDUHDVRIJUHDWHVW
ULVNWRXVDVGHWHUPLQHGE\DULVNEDVHGDSSURDFKWRDXGLWSODQQLQJ
Corporate Governance
3HUIRUPDQFHUHSRUWLQJ
5HSRUWVRQRXUDQQXDOSHUIRUPDQFHDQGSURVSHFWVDUHSUHVHQWHG
LQWKH$QQXDO5HSRUWIROORZLQJDSSURYDOE\WKH$XGLWDQG5LVN
&RPPLWWHH:HDOVRSUHSDUHDKDOI\HDUO\QDQFLDOUHSRUWRQRXU
SHUIRUPDQFHGXULQJWKHUVWVL[PRQWKVRIWKHQDQFLDO\HDU,Q
WKH*URXSGLVFRQWLQXHGWKHSUDFWLFHRITXDUWHUO\UHSRUWLQJ,QOLQH
ZLWK8.SUDFWLFHZHKDYHDGRSWHGKDOI\HDUDQGIXOO\HDUUHSRUWV
DQG4DQG4WUDGLQJXSGDWHVHHFWLYHIURP4,QWHUQDOO\
RXUQDQFLDOUHVXOWVDQGNH\SHUIRUPDQFHLQGLFDWRUVDUHFLUFXODWHG
DQGUHYLHZHGE\WKH2SHUDWLQJ&RPPLWWHHRQDPRQWKO\EDVLV7KLV
LQIRUPDWLRQLQFOXGHVFRPSDULVRQVDJDLQVWEXVLQHVVSODQVIRUHFDVWV

Financial Statements
$VSDUWRIRXUFRPPLWPHQWWRPDLQWDLQLQJDQGVWUHQJWKHQLQJEHVW
DQGSULRU\HDUSHUIRUPDQFH7KH%RDUGRI'LUHFWRUVUHFHLYHVXSGDWHV
SUDFWLFHLQFRUSRUDWHJRYHUQDQFHPDWWHUVZHDOVRFRQVLVWHQWO\
RQSHUIRUPDQFHDWHDFK%RDUGPHHWLQJDVZHOODVDPRQWKO\UHSRUW
VHHNWRHQKDQFHRXULQWHUQDOFRQWUROHQYLURQPHQWDQGULVN
RQRXUEXVLQHVVDQGQDQFLDOSHUIRUPDQFH
PDQDJHPHQWFDSDELOLW\
7KHLQWHUQDODXGLWIXQFWLRQSUHSDUHVDXGLWUHSRUWVDQG
UHFRPPHQGDWLRQVIROORZLQJHDFKDXGLWDQGDSSURSULDWH
PHDVXUHVDUHWKHQWDNHQWRHQVXUHWKDWDOOUHFRPPHQGDWLRQV
DUHbLPSOHPHQWHG6WDWXVUHSRUWVRQRXUPDQDJHPHQWV
LPSOHPHQWDWLRQRIbLQWHUQDODXGLWUHFRPPHQGDWLRQVbDUHSURYLGHG
WRWKH$XGLWDQG5LVN&RPPLWWHHbRQDTXDUWHUO\EDVLV6LJQLFDQW
LVVXHVLIDQ\DUHUDLVHGDWRQFH7KHUHZHUHQRVXFKLVVXHVLQ
7KH&KLHI([HFXWLYH2FHUWKH&KLHI)LQDQFLDO2FHUWKH

Swiss Statutory Reporting

*HQHUDO&RXQVHOWKH*URXS&KLHI$FFRXQWDQWDQGWKHUHJLRQDQG
FRXQWU\PDQDJHUVKDYHDFFHVVWRWKHLPSOHPHQWDWLRQVWDWXVRIWKH
UHFRPPHQGDWLRQVDWDOOWLPHV

:KLVWOHEORZLQJPHDVXUHV
:HRSHUDWHDKRWOLQHWRUHFHLYHUHWDLQLQYHVWLJDWHDQGDFWRQ
HPSOR\HHFRPSODLQWVRUFRQFHUQVUHJDUGLQJDFFRXQWLQJLQWHUQDO
FRQWURORUHWKLFDOPDWWHUV7KLVLQFOXGHVDQ\PDWWHUVUHJDUGLQJWKH
FLUFXPYHQWLRQRUDWWHPSWHGFLUFXPYHQWLRQRILQWHUQDOFRQWUROV
LQFOXGLQJPDWWHUVWKDWZRXOGFRQVWLWXWHDYLRODWLRQRIRXU&RGHRI
%XVLQHVV&RQGXFWRUPDWWHUVLQYROYLQJIUDXGXOHQWEHKDYLRXUE\
Supplementary Information

RFHUVRUHPSOR\HHVRIWKH*URXSWKDWPD\DHFWRXUDFFRXQWV
$OObVXFKDOOHJDWLRQVFRPSODLQWVRUFRQFHUQVPD\EHFRPPXQLFDWHG
LQDYDULHW\RIZD\VDQGRQDQDQRQ\PRXVEDVLVWRRXU'LUHFWRURI
,QWHUQDO$XGLW&RPPXQLFDWLRQVUHFHLYHGE\WKH'LUHFWRURI,QWHUQDO
$XGLWRUGLUHFWO\WKURXJKWKHKRWOLQHDUHNHSWFRQGHQWLDO7KH
'LUHFWRURI,QWHUQDO$XGLWOLDLVHVUHJXODUO\ZLWKWKH*HQHUDO&RXQVHO
DQGFRPPXQLFDWHVDOOVLJQLFDQWDOOHJDWLRQVWRWKH&KDLUPDQRI
WKHb$XGLWDQG5LVN&RPPLWWHH

COC016_.indb 83 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

1RPLQDWLRQ&RPPLWWHH5HSRUW
Dear Shareholder
'XHWRWKHUHWLUHPHQWRIWZRLQGHSHQGHQWQRQ([HFXWLYH'LUHFWRUV
DQGWZRQRQ([HFXWLYH'LUHFWRUVGXULQJWKHZRUNRIWKH
1RPLQDWLRQ&RPPLWWHHIRFXVHGRQWKHFRPSRVLWLRQRIWKH
%RDUGDQGWKHLPSRUWDQWWDVNRIVXFFHVVLRQSODQQLQJ7ROOWKHVH
YDFDQFLHVWKH&RPPLWWHHRYHUVDZWKHSURFHVVRILGHQWLI\LQJDQG
UHFRPPHQGLQJWRWKH%RDUGIRXUQHZ%RDUGPHPEHUVLQFOXGLQJ
WZRZKRDUHGHHPHGWREHLQGHSHQGHQW7KH&RPPLWWHHUHYLHZHG
YDULRXVPDQDJHPHQWFKDQJHVWKDWWRRNSODFHLQWKH&RPSDQ\
GXULQJbEHIRUHWKHDSSRLQWPHQWVZHUHPDGH:HDOVRRYHUVDZ
WKHSHUIRUPDQFHHYDOXDWLRQRIWKH%RDUGDQGLWVFRPPLWWHHV
,QWKH&RPPLWWHHZLOOFRQWLQXHWRUHYLHZWKHEDODQFHRIVNLOOV
H[SHULHQFHDQGGLYHUVLW\RIWKH%RDUGDQGZLOODOVRIRFXVRQWKH
WDOHQWGHYHORSPHQWHPSOR\HHHQJDJHPHQWDQGJHQGHUGLYHUVLW\
LQLWLDWLYHVQHFHVVDU\WRHQVXUHWKDWWKH*URXSKDVWKHSHRSOHDQG
VNLOOVQHFHVVDU\WRGHOLYHURQLWVVWUDWHJ\7KH&RPPLWWHHZLOODOVR
RYHUVHHDQLQWHUQDOO\IDFLOLWDWHGVHOIDVVHVVPHQWSURFHVV

Mr. Reto Francioni

Committee Chair

5ROHDQGUHVSRQVLELOLWLHV Members 0HPEHUVKLSVWDWXV

7KHIXQFWLRQRIWKH1RPLQDWLRQ&RPPLWWHHLVWRVXSSRUWWKH%RDUG
LQIXOOOLQJLWVGXW\WRFRQGXFWD%RDUGVHOIDVVHVVPHQWWRHVWDEOLVK
DQGPDLQWDLQDSURFHVVIRUDSSRLQWLQJQHZ%RDUGPHPEHUVDQG
WRPDQDJHLQFRQVXOWDWLRQZLWKWKH&KDLUPDQWKHVXFFHVVLRQRI
WKH&KLHI([HFXWLYH2FHU7KHIRUPDOUROHRIWKH1RPLQDWLRQ
&RPPLWWHHLVVHWRXWLQWKHFKDUWHUIRUWKHFRPPLWWHHVRIWKH
%RDUGRI'LUHFWRUVLQ$QQH[&RIWKH&RPSDQ\V2UJDQLVDWLRQDO
5HJXODWLRQV7KLVLVDYDLODEOHRQOLQHDWKWWSFRFDFRODKHOOHQLF
FRPHQDERXWXVFRUSRUDWHJRYHUQDQFHFRUSRUDWHJRYHUQDQFH
RYHUYLHZ
.H\HOHPHQWVRIWKH1RPLQDWLRQ&RPPLWWHHVUROHDUHVHWRXWRQ
SDJH
COC016_.indb 84
0U5HWR)UDQFLRQL&KDLUPDQ 0HPEHUVLQFH
&KDLUPDQVLQFH
0U$QWRQLR'$PDWR 0HPEHUVLQFH
0UV$OH[DQGUD3DSDOH[RSRXORX 0HPEHUVLQFH
7KHPHPEHUVRIWKH1RPLQDWLRQ&RPPLWWHHDUH0U5HWR)UDQFLRQL
0U$QWRQLR'$PDWRDQG0UV$OH[DQGUD3DSDOH[RSRXORXZKR
ZHUHDSSRLQWHGE\WKH%RDUGRQ-XQH$OOPHPEHUVRIWKH
1RPLQDWLRQ&RPPLWWHHDUHLQGHSHQGHQWQRQ([HFXWLYH'LUHFWRUV
DQGWKH1RPLQDWLRQ&RPPLWWHHLVFKDLUHGE\0U5HWR)UDQFLRQL
3/16/17 2:35 PM
 Coca-Cola HBC
2016 Integrated Annual Report 

:RUNDQGDFWLYLWLHV
7KH1RPLQDWLRQ&RPPLWWHHPHWIRXUWLPHVGXULQJDQG
GLVFKDUJHGWKHUHVSRQVLELOLWLHVGHQHGXQGHU$QQH[&RIWKH
&RPSDQ\V2UJDQLVDWLRQDO5HJXODWLRQV7KH&KLHI([HFXWLYH2FHU
DQGWKH*URXS+XPDQ5HVRXUFHV'LUHFWRUUHJXODUO\DWWHQGPHHWLQJV
RIWKH1RPLQDWLRQ&RPPLWWHH,QDGGLWLRQWKH&KDLUPDQLVDFWLYHO\
LQYROYHGLQWKHZRUNRIWKH1RPLQDWLRQ&RPPLWWHHFRQFHUQLQJ
Strategic Report
'LYHUVLW\
$OO%RDUGDSSRLQWPHQWVDUHPDGHEDVHGRQPHULWDJDLQVWREMHFWLYH
FULWHULDHVWDEOLVKHGE\WKH1RPLQDWLRQ&RPPLWWHHDQGDSSURYHG
E\WKH%RDUGDQGZLWKGXHUHJDUGWRWKHEHQHWVRIGLYHUVLW\RQ
WKH%RDUGLQFOXGLQJJHQGHUGLYHUVLW\DVZHOODVH[SHUWLVHLQWKH
HOGRIVRFLDODQGHQYLURQPHQWDOWRSLFV7KH*URXSLVGHHSO\
FRPPLWWHGWRSROLFLHVSURPRWLQJGLYHUVLW\HTXDORSSRUWXQLW\DQG

Corporate Governance
VXFFHVVLRQSODQQLQJDQGWKHVHOHFWLRQRINH\SHRSOH,Q WDOHQWGHYHORSPHQWDWHYHU\OHYHOWKURXJKRXWWKH*URXS7KH
WKH*HQHUDO&RXQVHODOVRPHWZLWKWKH1RPLQDWLRQ&RPPLWWHH *URXSLVFRQVWDQWO\VHHNLQJWRDWWUDFWDQGUHFUXLWKLJKO\TXDOLHG
RQVHYHUDORFFDVLRQV'XULQJWKHZRUNRIWKH1RPLQDWLRQ FDQGLGDWHVIRUDOOSRVLWLRQVLQLWVEXVLQHVVUHJDUGOHVVRIJHQGHU
&RPPLWWHHLQFOXGHGFRQVLGHUDWLRQRI QDWLRQDOLW\HWKQLFLW\RUUHOLJLRXVEHOLHI7KH*URXSRHUVWUDLQLQJ
RSSRUWXQLWLHVWRDOOHPSOR\HHVGHSHQGLQJRQWKHLULQGLYLGXDOQHHGV
VXFFHVVLRQSODQQLQJDQGGHYHORSPHQWRISODQVIRUWKH
DQGGHYHORSPHQWUHTXLUHPHQWVLQRUGHUWRLPSURYHWKHLUVNLOOV
UHFUXLWPHQWRIbQHZ%RDUGPHPEHUV
DQGHQFRXUDJHVDOOHPSOR\HHVWRJDLQUHOHYDQWH[SHULHQFHDQG
FRPSRVLWLRQRIWKH%RDUGLQFOXGLQJWKHDSSURSULDWHEDODQFH NQRZOHGJHDSSOLFDEOHWRWKHLUSRVLWLRQDQGUROH
RIbVNLOOVNQRZOHGJHDQGH[SHULHQFH
$VDW'HFHPEHURIWKH%RDUGRIWKHH[HFXWLYH
DJUHHLQJWKHSURFHVVIRUWKHUHFUXLWPHQWDQGQRPLQDWLRQRIQHZ OHDGHUVRIVHQLRUOHDGHUVDQGRIDOOPDQDJHUVZHUH
%RDUGPHPEHUV ZRPHQ7KH1RPLQDWLRQ&RPPLWWHHLQFRQMXQFWLRQZLWKWKH
UHYLHZRIWKHWDOHQWPDQDJHPHQWIUDPHZRUN 2SHUDWLQJ&RPPLWWHHZLOOFRQWLQXHWRPRQLWRUWKHSURSRUWLRQRI

Financial Statements
FRPSLODWLRQRIDOLVWRISRWHQWLDOFDQGLGDWHVWROOUROHVRQ ZRPHQDWDOOOHYHOVRIWKH*URXSDQGHQVXUHWKDWDOODSSRLQWPHQWV
WKH%RDUG DUHPDGHZLWKDbYLHZWRKDYLQJDKLJKOHYHORIGLYHUVLW\ZLWKLQWKH
ZRUNSODFHDQGLQbOHDGHUVKLSSRVLWLRQVLQFOXGLQJJHQGHUGLYHUVLW\
UHFRPPHQGDWLRQWRWKH%RDUGRISURSRVHGFDQGLGDWHV
IRUbDSSRLQWPHQWWRWKH%RDUG
WKHSHUIRUPDQFHHYDOXDWLRQDQGDQQXDODVVHVVPHQWVRIWKH
FRPPLWWHHVDQGWKH%RDUG
UHYLHZRIWKH'LUHFWRULQGXFWLRQSURFHVVDQGWUDLQLQJ
SURJUDPPHVDQG
UHYLHZRIWKH*URXSVGLYHUVLW\SROLF\

Swiss Statutory Reporting

3HUIRUPDQFHHYDOXDWLRQRIWKH%RDUG
7KH1RPLQDWLRQ&RPPLWWHHDOVROHGWKHH[WHUQDODVVHVVPHQWRIWKH
%RDUGVSHUIRUPDQFHGXULQJWKH\HDU7KHNH\DUHDVLQFOXGHGLQWKH
H[WHUQDODVVHVVPHQWZHUHb%RDUGVWUXFWXUHDQGGLYHUVLW\WLPHOLQHVV
DQGTXDOLW\RILQIRUPDWLRQ%RDUGGLVFXVVLRQVFRPPLWWHHVDQGWKHLU
RSHUDWLRQVXFFHVVLRQSODQQLQJULVNDSSHWLWHDQGULVNPDQDJHPHQW
DQGUHPXQHUDWLRQDQGSHUIRUPDQFH7KHVFRUHVZHUHKLJKLQ
PRVWDUHDVDQGWKHUHVXOWVRIWKHHYDOXDWLRQZHUHSUHVHQWHGDW
WKH'HFHPEHU%RDUGPHHWLQJ7KH1RPLQDWLRQ&RPPLWWHH
EURXJKWWRWKH%RDUGIRUGLVFXVVLRQFHUWDLQDUHDVVXFKDVVXFFHVVLRQ
SODQQLQJRIVHQLRUPDQDJHPHQWUROHVDQGPRUHIRFXVRQGLVFXVVLRQ
RIVWUDWHJLFLVVXHVZKHUHLWZDVIHOWLPSURYHPHQWVFRXOGEHPDGH
Supplementary Information

COC016_.indb 85 3/16/17 2:35 PM

  Coca-Cola HBC
2016 Integrated Annual Report

&RUSRUDWH*RYHUQDQFH5HSRUWFRQWLQXHG

6RFLDO5HVSRQVLELOLW\
&RPPLWWHH5HSRUW
Dear Shareholder
'XULQJWKH&RPPLWWHHIRFXVHGRQWKHLQWURGXFWLRQRIWKH
*URXSVQHZZDYHRIVXVWDLQDELOLW\FRPPLWPHQWVZKLFK\RX
FDQQGRQSDJH
7KHVHFRPPLWPHQWVDUHPDWHULDOWRDOPRVWHYHU\DVSHFWRI
RXUEXVLQHVVDQGDUHSDUWRIRXURYHUDOOVWUDWHJ\WKDWKDVPDGH
&RFD&ROD+%&DOHDGHULQVXVWDLQDELOLW\DPRQJEHYHUDJH
FRPSDQLHVUHHFWLQJRXUGHWHUPLQDWLRQWRJURZRXUEXVLQHVV
UHVSRQVLEO\SURWDEO\DQGVXVWDLQDEO\
7KH&RPPLWWHHDOVRRYHUVDZWKH*URXSVHRUWVWRVWDQGDUGLVH
VXVWDLQDELOLW\UHSRUWLQJDWORFDOOHYHOLQRUGHUWRHQVXUHDPRUH
HFLHQWDQGXQLIRUPDSSURDFKWRVXVWDLQDELOLW\DFURVVRXU
RSHUDWLRQV$WWKHVDPHWLPHLWFRQWLQXHGPRQLWRULQJUHJXODWRU\
GHYHORSPHQWVLQWKHDUHDRIVXVWDLQDELOLW\ZLWKDQHPSKDVLVRQWKH
FLUFXODUHFRQRP\b
:HZHUHSDUWLFXODUO\SURXGWKDW&RFD&ROD+%&EHFDPHWKH
UVWEHYHUDJHFRPSDQ\WREHQDPHGLQGXVWU\OHDGHURQERWKWKH
:RUOGDQG(XURSH'RZ-RQHV6XVWDLQDELOLW\,QGLFHVIRUWKHWKLUG
FRQVHFXWLYH\HDU
7KH&RPPLWWHHZLOOFRQWLQXHWRDGYDQFHVXVWDLQDELOLW\WRSLFVDQG
HQVXUHWKDWWKHVHDUHFOHDUO\OLQNHGWRRXUEXVLQHVVSULRULWLHVLQRUGHU
WRFUHDWHYDOXHIRUDOOVWDNHKROGHUVRYHUWLPH
Mr. Anastasios I. Leventis
Committee Chair

5ROHDQGUHVSRQVLELOLWLHV 7KHUHVSRQVLELOLWLHVRIDQGNH\HOHPHQWVRIWKH6RFLDO5HVSRQVLELOLW\
&RPPLWWHHVUROHDUHVHWRXWRQSDJH
7KH6RFLDO5HVSRQVLELOLW\&RPPLWWHHLVUHVSRQVLEOHIRUWKH
Members 0HPEHUVKLSVWDWXV
GHYHORSPHQWDQGVXSHUYLVLRQRISURFHGXUHVDQGV\VWHPVWR
HQVXUHWKHSXUVXLWRIWKH*URXSVVRFLDODQGHQYLURQPHQWDOJRDOV 0U$QDVWDVLRV,/HYHQWLV 0HPEHUVLQFH
7KHIRUPDOUROHRIWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHLVVHWRXWLQ &KDLUPDQVLQFH
WKHFKDUWHUIRUWKHFRPPLWWHHVRIWKH%RDUGRI'LUHFWRUVLQ$QQH[ 0UV$OH[DQGUD3DSDOH[RSRXORX 0HPEHUVLQFH
&RIWKH&RPSDQ\V2UJDQLVDWLRQDO5HJXODWLRQV7KLVLVDYDLODEOH 0U-RV2FWDYLR5H\HV 0HPEHUVLQFH
RQOLQHDWbKWWSFRFDFRODKHOOHQLFFRPHQDERXWXVFRUSRUDWH
JRYHUQDQFHFRUSRUDWHJRYHUQDQFHRYHUYLHZ

COC016_.indb 86 3/16/17 2:35 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
:RUNDQGDFWLYLWLHV
7KH6RFLDO5HVSRQVLELOLW\&RPPLWWHHPHWIRXUWLPHVGXULQJ
DQGGLVFKDUJHGLWVUHVSRQVLELOLWLHVDVGHQHGXQGHU$QQH[&RIWKH
&RPSDQ\V2UJDQLVDWLRQDO5HJXODWLRQV,QDGGLWLRQWRWKHPHPEHUV
RIWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHWKH'LUHFWRURI3XEOLF$DLUV
DQG&RPPXQLFDWLRQDWWHQGVDOOPHHWLQJVRIWKH&RPPLWWHHDQGWKH
&KLHI([HFXWLYH2FHUUHJXODUO\DWWHQGV

Corporate Governance
'XULQJWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHUHYLHZHGDQG
SURYLGHGJXLGDQFHDQGLQVLJKWVWRDGYDQFHWKH*URXSVVXVWDLQDELOLW\
VWUDWHJLHVLQWKHIROORZLQJDUHDV
:D\VWRH[SDQGWKHVFRSHDQGEUHDGWKRIWKH*URXSV
VXVWDLQDELOLW\FRPPLWPHQWVSDUWLFXODUO\LQWKHDUHDVRI
XVHRIFOHDQDQGUHQHZDEOHHQHUJ\FRQVXPSWLRQRIZDWHU
FDUERQHPLVVLRQVSDFNDJLQJOLJKWZHLJKWLQJDQGUHFRYHU\IRU
UHF\FOLQJVXVWDLQDEOHVRXUFLQJOHYHORIFRPPXQLW\LQYHVWPHQW
DQGHPSOR\HHYROXQWHHULQJGXULQJZRUNKRXUV:HSURYLGHG
UHFRPPHQGDWLRQVIRULQFRUSRUDWLQJWKHVHLQRXUEXVLQHVV
SODQQLQJDQGLQYHVWPHQWGHFLVLRQPDNLQJSURFHVVHV

Financial Statements
$VVHVVPHQWRIWKH*URXSVSURJUHVVUHJDUGLQJWKHOHYHO
RIGLVFORVXUHDQGUHSRUWLQJDFURVVDOOWKUHHGLPHQVLRQVRI
VXVWDLQDELOLW\HFRQRPLFHQYLURQPHQWDODQGVRFLDOZLWKSDUWLFXODU
IRFXVRQWKH'RZ-RQHV6XVWDLQDELOLW\,QGLFHVDQG*5,*
FRPSUHKHQVLYHOHYHOUHSRUWLQJUHTXLUHPHQWV
)XUWKHUGLVFXVVLRQVGXULQJWKH\HDUIRFXVHGRQVSHFLF
RSHUDWLRQDOVXVWDLQDELOLW\NH\SHUIRUPDQFHLQGLFDWRUV.3,VZLWK
SDUWLFXODUHPSKDVLVRQSURGXFWTXDOLW\DQGLQWHJULW\DQGHPSOR\HH
ZHOOEHLQJDQGVDIHW\
1RWDEO\WKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHUHYLHZHGDQG
HQGRUVHGWKHSURFHVVIRUWKHDQQXDODVVHVVPHQWRIPDWHULDOLVVXHV

Swiss Statutory Reporting

ZKLFKFRPELQHGLQSXWIURPERWKEXVLQHVVOHDGHUVDQGLQWHUQDO
VWDNHKROGHUVLQDFFRUGDQFHZLWKWKHIUDPHZRUNRIWKH,QWHUQDWLRQDO
,QWHJUDWHG5HSRUWLQJ&RXQFLO,,5&WKH*5,*JXLGHOLQHVIRU
FRPSUHKHQVLYHUHSRUWLQJDQGWKHJXLGDQFHRIWKH6XVWDLQDELOLW\
$FFRXQWLQJ6WDQGDUGV%RDUGIRUWKHEHYHUDJHLQGXVWU\

Supplementary Information

COC016_.indb 87 3/16/17 2:35 PM

 Coca-Cola HBC
88 2016 Integrated Annual Report

Directors Remuneration Report

Letter from the Chair of the

Remuneration Committee
Dear Shareholder
As the new Chair of the Remuneration Committee elected in June
,DPSOHDVHGWRLQWURGXFHP\UVW'LUHFWRUV5HPXQHUDWLRQ
Report for the year ended 31 December 2016. I would like to take
this opportunity to thank Sir Michael Llewelyn-Smith on behalf of the
Board for his work as Chair of the Committee up until June 2016 and
his valuable assistance during our handover period.
Our primary listing is on the London Stock Exchange, and our
Company is domiciled in Switzerland. We therefore ensure that
ZHbFRPSO\IXOO\ZLWK8.UHJXODWLRQVH[FHSWZKHUHWKHVHFRQLFW
with Swiss law.
This year, we have reworked the format of the Remuneration Report
LQDQHRUWWRPDNHRXUUHPXQHUDWLRQSROLF\DQG$QQXDO5HSRUWRQ
Remuneration as clear, understandable and informative as possible.
As always, I welcome your feedback if there is anything we can do to
make the report even clearer.
The Groups remuneration philosophy and policies are designed
to attract, motivate and retain the talented people we need to
meet the Companys strategic objectives, and to give them due Applying the remuneration policy for
UHFRJQLWLRQ7RbWKLVHQGWKH5HPXQHUDWLRQ&RPPLWWHHKDVZRUNHG Directors in 2016
to ensure that the remuneration policy of the Group remains
fair, transparent and competitive in comparison with our peers, In accordance with our remuneration policy, the base salary of the
and that remuneration is linked to business strategy and drives &KLHI([HFXWLYH2FHULVUHYLHZHGDQQXDOO\bDIWHUWKHQDQFLDOUHVXOWV
of the year are available. We took into account the positive results of
sustainable performance.
WKHJURZWKLQYROXPHDQGFRPSDUDEOHRSHUDWLQJQHWSURW
2016 performance outcomes WKHbLQFUHDVHLQIUHHFDVKRZDQGJURZWKLQFRPSDUDEOH(36DOVR
the improved engagement results, which were one of the Chief
We are delighted with our performance and sustained progress ([HFXWLYH2FHUVREMHFWLYHVIRUWKH\HDUDQGWKHIDFWWKDW
LQbDQGZHFRQWLQXHWREHGHYHORSLQJLQOLQHZLWKRXU Coca-Cola HBC once more was adjudged beverage industry leader
strategic plan. Volume increased by 0.1%, net sales grew by 3.0% in the Dow Jones Sustainability Indices for Europe and the world.
on an FX-neutral basis, while comparable EBIT grew by 9.5%. Our ,QbWKHOLJKWRIWKHVHUHVXOWVZHGHFLGHGWRUHFRPPHQGLQFUHDVLQJ
FRVWFRQWUROVDQGGULYHWRLPSURYHHFLHQF\FRQWLQXHWRLPSURYH WKH&KLHI([HFXWLYH2FHUVDQQXDOEDVHVDODU\E\HHFWLYH
RXUSURWDELOLW\bDQGWKLVLVUHHFWHGLQRXURSHUDWLQJH[SHQGLWXUH 0D\7KHb5HPXQHUDWLRQ&RPPLWWHHFRQVLGHUHGEXVLQHVVDQG
ratio (operating expense as a % of NSR excluding direct marketing individual performance criteria when recommending the increase.
H[SHQVHVZKLFKGHFUHDVHGWRIURPLQb2XU
GHFLVLRQVLQUHODWLRQWRUHPXQHUDWLRQbKDYHEHHQPDGHLQOLJKW
RIbWKLVVROLG&RPSDQ\SHUIRUPDQFH
The table below illustrates Company performance achieved
against key performance indicators, and highlights those that are
used in our Management Incentive Plan (MIP) and Performance
Share Plan (PSP) variable pay arrangements.
Our sustained business performance in 2016 has resulted in a
SD\RXWRIRIEDVHVDODU\XQGHUWKHb0,3IRUWKH&KLHI([HFXWLYH
2FHUHTXLYDOHQWWRDQDZDUGRIDSSUR[RIWKHPD[LPXP0,3
RSSRUWXQLW\7KLVUHHFWVVROLG&RPSDQ\SHUIRUPDQFHZLWKYROXPH
and net sales revenue results between threshold and target levels
and comparable EBIT and operating expenses ratio between target
and maximum levels. We remained beverage industry leaders on
Dow Jones Sustainability Index for the third year in a row, increased
Volume (m unit cases) 1HWVDOHVUHYHQXHP
engagement results, increased EBIT and grew transactions ahead
2,058 6,219 of volume.
2015: 2,055 b
:HKDYHFRPPLWWHGWRGLVFORVLQJUHWURVSHFWLYHO\WKH0,3bWDUJHWV
FX-neutral NSR 2SHUDWLQJH[SHQVH DQG\RXZLOOQGWKHSHUIRUPDQFHWDUJHWVDQGRXWFRPHV
JHQHUDWHGbSHUFDVH DVRI165H[FO'0( reported on page 101 of the Annual Report on Remuneration.
3.02 25.8% ,Q0DUFKWKH&KLHI([HFXWLYH2FHUUHFHLYHGDVHFRQGbJUDQW
b b under the PSP, which replaced the Employee Stock Option Plan
(ESOP) in 2015. The award represented 330% of his base salary
&RPSDUDEOH(%,7P )UHHFDVKRZP DWbWKHGDWHRIbJUDQW7KHVHVKDUHVDUHVXEMHFWWRDWKUHH\HDU
518 431 SHUIRUPDQFHSHULRGDOLJQHGWRWKH&RPSDQ\VQDQFLDO\HDUZLWK
 2015: 412 SHUIRUPDQFHPHDVXUHGWRWKHHQGRIWKHQDQFLDO\HDUDQG
YHVWLQJEHLQJDQWLFLSDWHGLQ0DUFKb
52,& &RPSDUDEOH(36
10.3% 0.972
2015: 8.8% 
Included in MIP Included in PSP Other key performance indicators

COC016_.indb 88 3/16/17 2:36 PM


Changes in 2016
The following are some of the key highlights that the
5HPXQHUDWLRQ&RPPLWWHHIRFXVHGRQGXULQJb
reviewing and approving the cash Long-Term Incentive Plan
Coca-Cola HBC
2016 Integrated Annual Report 89
Strategic Report
The role of the Remuneration Committee
The main tasks of our Remuneration Committee are to establish the
remuneration strategy for the Group and to approve compensation
packages for Directors and other select senior management.
7KHb5HPXQHUDWLRQ&RPPLWWHHRSHUDWHVXQGHUWKH&KDUWHUIRU
WKHb&RPPLWWHHVRIWKH%RDUGRIWKH&RPSDQ\VHWIRUWKLQ$QQH[&
/7,3DSODQIRUPDQDJHUVEHORZWRSH[HFXWLYHOHYHO WRbWKH2UJDQLVDWLRQDO5HJXODWLRQVRIWKH&RPSDQ\DYDLODEOHRQWKH
reviewing existing and new pension arrangements in Groups website at: http://coca-colahellenic.com/en/about-us/
WKH*URXS corporate-governance/corporate-governance-overview/.
UHYLVLQJWKH(633DGPLQLVWUDWLRQSURFHVVDQG Members Membership status

reviewing and recommending changes to the governance Mrs. Alexandra Papalexopoulou (Chair) Member since 2015

DURXQGWKHDSSURYDORIb'LUHFWRUSD\GHFLVLRQVb
The Remuneration Committee re-considered the Groups
remuneration policy in 2016, as is the case every year. We
continue to believe the policy is fair and transparent and
supports the alignment of management with our business
strategy and shareholders interests.
No changes to the remuneration policy were
therefore proposed.
We have however decided to make certain changes in the
Remuneration Committees process of making decisions in
UHODWLRQWRWKH&KLHI([HFXWLYH2FHUVUHPXQHUDWLRQ%\
Corporate Governance
Chair since June 2016
Mr. Antonio DAmato Member since 2013
Mr. Reto Francioni Appointed June 2016
,QDFFRUGDQFHZLWKWKH8.&RUSRUDWH*RYHUQDQFH&RGH
WKHb5HPXQHUDWLRQ&RPPLWWHHFRQVLVWVRIWKUHHLQGHSHQGHQW
non-Executive Directors: Mrs. Alexandra Papalexopoulou (Chair),
0Ub$QWRQLR'$PDWRDQG0U5HWR)UDQFLRQLZKRZHUHHDFK
elected by the shareholders for a one-year term on 21 June 2016.
7KHb5HPXQHUDWLRQ&RPPLWWHHPHWIRXUWLPHVLQ0DUFK
-XQHb6HSWHPEHUDQG'HFHPEHU3OHDVHUHIHUWRWKH%RDUG
DQGbFRPPLWWHHDWWHQGDQFHLQVHFWLRQRIWKH&RUSRUDWH

Financial Statements
delegation from the Board, the Remuneration Committee will
Governance report on page 65 for details on the Remuneration
GHFLGHRQWKH&KLHI([HFXWLYH2FHUVUHPXQHUDWLRQUHSRUWLQJ
Committee meetings.
these decisions to the Board. This process we believe will
FRQIRUPWREHVWSUDFWLFHLQWKH8.:HDOVRSURSRVHWKDWLQ
IXWXUHWKH&KLHI([HFXWLYH2FHUDQGWKH&KDLUPDQRIWKH
Board will decide the fees for non-Executive Directors. This
change will be proposed for approval by our shareholders at the
$QQXDO*HQHUDO0HHWLQJ<RXZLOOQGIXUWKHUGHWDLOVDERXW
how we have applied the remuneration policy this year in the
Annual Report on Remuneration section on page 99.

Looking ahead

Swiss Statutory Reporting

7KH5HPXQHUDWLRQb&RPPLWWHHZLOOFRQWLQXHWRNHHSSROLFLHV
XQGHUUHYLHZVRDVWRHQVXUHWKDWbSODQVDQGSURJUDPPHV
relating to remuneration support the Companys business
strategy and are closely linked to shareholders interests. We
value the dialogue with shareholders and welcome views on this
Remuneration Report. We were pleased with the positive vote
for the Companys remuneration policy and the Annual Report
on Remuneration at the 2016 Annual General Meeting and trust
we shall have your support again in 2017.
Supplementary Information

$OH[DQGUD3DSDOH[RSRXORX
Chair of the Remuneration Committee

COC016_.indb 89 3/16/17 2:36 PM

 Coca-Cola HBC
90 2016 Integrated Annual Report

Directors Remuneration Report continued

Remuneration throughout the organisation Reward strategy and objective

a snapshot The objective of the Groups remuneration philosophy is to attract,
UHWDLQDQGPRWLYDWHHPSOR\HHVDQGLQFHQWLYLVHGHVLUDEOHbEHKDYLRXU
HQVXULQJWKDWHPSOR\HHVDUHIDLUO\bUHZDUGHGDQGWKDWWKHLULQGLYLGXDO
contributions are directly linked to the success of the Company.
Attracting Motivating
Variable pay is an important element of our reward philosophy.
Finding the people we $FKLHYLQJQDQFLDO $bVLJQLFDQWSURSRUWLRQRIWRWDOUHPXQHUDWLRQIRUWRSPDQDJHUV
want and need business and non- LQFOXGLQJWKH&KLHI([HFXWLYH2FHUDQGWKHPHPEHUVRIWKH
QDQFLDOWDUJHWV Operating Committee) is tied to the achievement of our business
REMHFWLYHV7KHVHREMHFWLYHVDUHGHQHGE\NH\EXVLQHVVPHWULFV
WKDWDUHbFRQVLVWHQWZLWKRXUVWUDWHJ\DQGZLOOGHOLYHUORQJWHUP
shareholder value. The variable pay element increases or
GHFUHDVHVbEDVHGRQWKHDFKLHYHGEXVLQHVVSHUIRUPDQFH7KURXJK
A competitive HTXLW\UHODWHGORQJWHUPFRPSHQVDWLRQZHVHHNWRHQVXUHWKDW
winning team WKHbQDQFLDOLQWHUHVWVRIWKH&KLHI([HFXWLYH2FHUWKHPHPEHUV
RIbWKHb2SHUDWLQJ&RPPLWWHHDQGWRSPDQDJHUVDUHDOLJQHGZLWK
those of shareholders.
$OORIRXUUHPXQHUDWLRQSODQVERWK[HGDQGYDULDEOHDUHGHVLJQHG
Retaining Recognising WRbEHFRVWHHFWLYHWDNLQJLQWRDFFRXQWPDUNHWSUDFWLFHEXVLQHVV
Continuing to attract the Adopting behaviours performance and individual performance and experience where
best talent that produce exceptional relevant. We pay close attention to our shareholders views
performance LQbUHYLHZLQJRXUUHPXQHUDWLRQSROLF\DQGSURJUDPPHV

How we implement this

7KHFKDUWEHORZLOOXVWUDWHVWKHGLHUHQWUHPXQHUDWLRQDUUDQJHPHQWVWKDWDSSO\WRGLHUHQWHPSOR\HHJURXSVLQRUGHUWRSXWRXUUHZDUG
strategy into practice.

&KLHI([HFXWLYH2FHU Support the alignment with shareholder interests ensuring sustainable

Shareholding performance
DQGb2SHUDWLQJ&RPPLWWHH guidelines &KLHI([HFXWLYH2FHUUHTXLUHGWRKROGVKDUHVLQWKH&RPSDQ\
HTXDObLQbYDOXHWRRIDQQXDOEDVHVDODU\ZLWKLQDYH\HDUSHULRG
2SHUDWLQJ&RPPLWWHHUHTXLUHGWRKROGVKDUHVLQWKH&RPSDQ\
HTXDObLQbYDOXHWRRIDQQXDOEDVHVDODU\ZLWKLQDYH\HDUSHULRG

&KLHI([HFXWLYH2FHUDQG2SHUDWLQJ Performance
Performance share awards span over three years. PSP awards are
cascaded down to top managers, promoting a focus on long-term
Committee and selected senior management Share Plan
performance and aligning them to shareholders interests.

Selected middle and senior Cash long-term incentive awards span three years. LTIP awards are
Long-Term cascaded down to select middle and senior management to promote
management Incentive Plan
DbKLJKSHUIRUPDQFHFXOWXUH

All management Management employees may be eligible to receive an award under the
Management annual bonus scheme. Performance conditions are bespoke to the role
Incentive Plan DQGbEXVLQHVVXQLW

All employees Employee Stock The ESPP encourages share ownership and aligns the
Purchase Plan interests of our employees with those of shareholders.
(dependent on
country practice)

%DVHVDODULHVPD\UHHFWWKHPDUNHWYDOXHRIHDFKUROHDVZHOODVWKH
Fixed pay LQGLYLGXDOVSHUIRUPDQFHDQGSRWHQWLDO5HWLUHPHQWDQGRWKHUEHQHWV
DQG{EHQHWV
(base salary, retirement DUHbVXEMHFWWRORFDOPDUNHWSUDFWLFH
DQGRWKHUEHQHWV
bGHSHQGHQWRQ
country practice)

Note: Participants in the Performance Share Plan are not eligible to participate in the Long-Term Incentive Plan.

COC016_.indb 90 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 91

Strategic Report
$WDJODQFHWKHUHPXQHUDWLRQDUUDQJHPHQWVIRUWKH&KLHI([HFXWLYH2FHU
7KHWDEOHEHORZVXPPDULVHVWKHUHPXQHUDWLRQDUUDQJHPHQWVLQSODFHIRURXU&KLHI([HFXWLYH2FHU6HHSDJHIRUWRWDO
FRPSHQVDWLRQJXUHV

Retirement Other Total

Base salary
EHQHWV EHQHWV
ESPP* + MIP PSP = compensation

Corporate Governance
Fixed pay Variable pay subject
WRbSHUIRUPDQFH

Pay element Detail

Base salary 7KHFXUUHQWEDVHVDODU\bRIWKH&KLHI([HFXWLYH2FHULV
7KHVDODU\LVUHYLHZHGDQQXDOO\bDQGDQ\LQFUHDVHLVW\SLFDOO\HHFWLYHb0D\HDFK\HDU
5HWLUHPHQWEHQHWV 7KH&KLHI([HFXWLYH2FHUSDUWLFLSDWHVLQDGHQHGEHQHWSHQVLRQSODQXQGHU6ZLVVODZ

Financial Statements
Employer contributions are 18% of annual base salary.
2WKHUEHQHWV 2WKHUEHQHWVLQFOXGHPHGLFDOLQVXUDQFHKRXVLQJDOORZDQFHFRPSDQ\FDUDOORZDQFHFRVWRIOLYLQJ
DGMXVWPHQWWULSDOORZDQFHSDUWQHUDOORZDQFHH[FKDQJHUDWHSURWHFWLRQWD[HTXDOLVDWLRQDQGWD[
OLQJVXSSRUWDQGDGYLFH%HQHWOHYHOVYDU\HDFK\HDUGHSHQGLQJRQQHHG
ESPP 7KH&KLHI([HFXWLYH2FHUPD\SDUWLFLSDWHLQWKH&RPSDQ\VHPSOR\HHVKDUHSXUFKDVHSODQ$VD
(Employee Share Purchase Plan) VFKHPHSDUWLFLSDQWWKH&KLHI([HFXWLYH2FHUKDVWKHRSSRUWXQLW\WRLQYHVWDSRUWLRQRIKLVVDODU\
or MIP payments in shares. The Company matches employee contributions on a one-to-one basis
up to 3% of salary and/or MIP payout.
Awards are subject to potential application of malus and clawback provisions.
MIP The MIP consists of a maximum annual bonus opportunity of up to 130% of base salary.
(Management Incentive Plan) Payout is based on business performance targets (up to 120% of base salary) and individual

Swiss Statutory Reporting

performance (up to 10% of base salary).
1RERQXVZLOOEHSDLGRXWLIWKH&KLHI([HFXWLYH2FHUKDVDFKLHYHGOHVVWKDQRIKLV
LQGLYLGXDObREMHFWLYHV
Payments are subject to potential application of malus and clawback provisions.
PSP 7KH363LVDQDQQXDOVKDUHDZDUGZKLFKYHVWVDIWHUWKUHH\HDUVDQGLVbVXEMHFWWRWZRHTXDOO\
(Performance Share Plan) weighted performance conditions:
LFRPSDUDEOHHDUQLQJVSHUVKDUH(36DQG
(ii) return on invested capital (ROIC) measured over a three-year period.
Awards are subject to potential application of malus and clawback provisions.
 8QGHUWKH6LQJOHJXUHWDEOH(633LVLQFOXGHGLQFDVKDQGQRQFDVKEHQHWV3OHDVHUHIHUWRSDJH
Supplementary Information

COC016_.indb 91 3/16/17 2:36 PM

 Coca-Cola HBC
92 2016 Integrated Annual Report

Directors Remuneration Report continued

Remuneration Policy
Introduction
In 2016 we have endeavoured to provide more clarity around our remuneration policy for Executive and non-Executive Directors. As such, we
present an improved visual presentation of the remuneration policy which was put forward to shareholders on a voluntary basis and approved
DWWKH$QQXDO*HQHUDO0HHWLQJ7KLVYHUVLRQGRHVQRWUHHFWDQ\SROLF\FKDQJHVEXWLVLQWHQGHGWRSURYLGHDFOHDUSUHVHQWDWLRQRIRXU
FRQWLQXLQJDSSURDFK$VD6ZLVVLQFRUSRUDWHGFRPSDQ\ZHDUHQRWUHTXLUHGWRSXWIRUZDUGRXUUHPXQHUDWLRQSROLF\IRUDVKDUHKROGHUYRWH
but we intend to do so voluntarily at least every three years (or when there are changes). We continue to endeavour to make sure that our
GLVFORVXUHFRPSOLHVIXOO\ZLWK8.UHJXODWLRQVH[FHSWZKHQWKHVHFRQLFWZLWK6ZLVVODZ

Policy table
Fixed
Base salary 5HWLUHPHQWEHQHWV
Purpose and link to strategy Purpose and link to strategy
7RSURYLGHD[HGOHYHORIFRPSHQVDWLRQDSSURSULDWHWRWKH 7RSURYLGHFRPSHWLWLYHFRVWHHFWLYHSRVWUHWLUHPHQWEHQHWV
UHTXLUHPHQWVRIWKHUROHRI&KLHI([HFXWLYH2FHUDQGWRVXSSRUW Operation
the attraction and retention of the talent able to deliver the Groups 7KH&KLHI([HFXWLYH2FHUSDUWLFLSDWHVLQDGHQHGEHQHW
strategy. pension plan under Swiss law. There is no obligation for employee
Operation contributions.
6DODU\LVUHYLHZHGDQQXDOO\ZLWKVDODU\FKDQJHVQRUPDOO\HHFWLYHRQ 1RUPDOUHWLUHPHQWDJHIRUWKH&KLHI([HFXWLYH2FHUVSODQLV
1 May each year. years. In case of early retirement, which is possible from the age of 58,
The following parameters are considered when reviewing base WKH&KLHI([HFXWLYH2FHULVHQWLWOHGWRUHFHLYHWKHDPRXQWDFFUXHG
salary level: under the plan as a lump sum.
WKH&(2VSHUIRUPDQFHVNLOOVDQGUHVSRQVLELOLWLHV Maximum opportunity
HFRQRPLFFRQGLWLRQVDQGSHUIRUPDQFHWUHQGV The contributions to the pension plan are calculated as a percentage
H[SHULHQFHRIWKH&(2 of annual base salary (excluding any incentive payments or other
SD\LQFUHDVHVIRURWKHUHPSOR\HHVDQG DOORZDQFHEHQHWVSURYLGHGEDVHGRQDJHEUDFNHWVDVGHQHG
external comparisons based on factors such as: the industry E\b)HGHUDO6ZLVVOHJLVODWLRQ7KLVSHUFHQWDJHLVFXUUHQWO\RI
of the business, revenue, market capitalisation, headcount, EDVHbVDODU\
geographical footprint, stock exchange listing (FTSE) and other Performance metrics
European companies. None.
Maximum opportunity
One of the relevant factors in determining the salary of the Chief
([HFXWLYH2FHULVWKHLQFUHDVHDZDUGHGWRbRWKHUHPSOR\HHV
7KHVDODU\LQFUHDVHRIWKH&KLHI([HFXWLYH2FHUPD\H[FHHG
WKHDYHUDJHVDODU\LQFUHDVHWRUHHFWEXVLQHVVDQGLQGLYLGXDO
performance, material changes to the business, internal
promotions, accrual of experience, changes to the role, or other
material factors.
Performance metrics
Individual and business performance are key factors when
determining any base salary changes.

COC016_.indb 92 3/16/17 2:36 PM


2WKHUEHQHWV
Purpose and link to strategy
7RSURYLGHEHQHWVWRWKH&KLHI([HFXWLYH2FHUZKLFKDUH
FRQVLVWHQWZLWKPDUNHWbSUDFWLFH
Operation
%HQHWSURYLVLRQVDUHUHYLHZHGE\WKH5HPXQHUDWLRQ&RPPLWWHH
which has the discretion to recommend the introduction of additional This is a voluntary share purchase scheme across many of the
EHQHWVZKHUHDSSURSULDWH
7\SLFDOSURYLVLRQVIRUWKH&KLHI([HFXWLYH2FHULQFOXGHEHQHWV
related to relocation such as: housing allowance, company car/
allowance, a cost of living adjustment, trip allowance, partner
DOORZDQFHH[FKDQJHUDWHSURWHFWLRQWD[HTXDOLVDWLRQDQGWD[OLQJ
VXSSRUWDQGDGYLFH)RUDOOEHQHWVWKH&RPSDQ\ZLOOEHDUDQ\LQFRPH on a one-to-one basis up to 3% of the employees salary and /or MIP
tax and social security contributions arising from this payment.
Maximum opportunity
7KHUHLVQRGHQHGPD[LPXPDVWKHFRVWWRWKH&RPSDQ\RI
SURYLGLQJVXFKEHQHWVZLOOYDU\IURP\HDUWR\HDU
Performance metrics
None.
COC016_.indb 93
Coca-Cola HBC
2016 Integrated Annual Report 93
Strategic Report
Corporate Governance
ESPP (Employee Stock Purchase Plan)
Purpose and link to strategy
The ESPP is an employee share purchase plan, encouraging broader
share ownership, and is intended to align the interests of employees
DQGWKH&KLHI([HFXWLYH2FHUZLWKWKRVHRIWKHVKDUHKROGHUV
Operation
Financial Statements
*URXSVFRXQWULHV7KH&KLHI([HFXWLYH2FHUDVDVFKHPH
participant has the opportunity to invest from 1% to 15% of his salary
and/or MIP payout to purchase the Companys shares by contributing
to the plan on a monthly basis.
7KH&RPSDQ\PDWFKHVWKH&KLHI([HFXWLYH2FHUVFRQWULEXWLRQV
payout. Matching shares vest after one year from the purchase.
Dividends received in respect of shares held under the ESPP are
XVHGbWRSXUFKDVHDGGLWLRQDOVKDUHVDQGDUHLPPHGLDWHO\YHVWHG
7KH&KLHI([HFXWLYH2FHULVHOLJLEOHWRSDUWLFLSDWHLQWKH(633
operated by the Company on the same basis as other employees.
Maximum opportunity
Swiss Statutory Reporting
Maximum investment is 15% of gross base salary and MIP payout.
The Company matches contributions up to 3% of gross base salary
and MIP payout. Matching shares vest after one year.
Performance metrics
7KHYDOXHLVGLUHFWO\DHFWHGE\WKHVKDUHSULFHSHUIRUPDQFH
,WLVQRWbDHFWHGE\RWKHUSHUIRUPDQFHFULWHULD
Supplementary Information
3/16/17 2:36 PM
 Coca-Cola HBC
94 2016 Integrated Annual Report
Directors Remuneration Report continued
Variable pay
MIP (Management Incentive Plan)
Purpose and link to strategy
7RVXSSRUWSURWDEOHJURZWKDQGUHZDUGDQQXDOO\IRU
contribution to business performance. The plan aims
to promote a high-performance culture with stretched
LQGLYLGXDODQGEXVLQHVVWDUJHWVOLQNHGWRRXUNH\bVWUDWHJLHV
Operation
Annual cash bonus awarded under the MIP are subject
to business and individual performance and are
non-pensionable.
7KH&KLHI([HFXWLYH2FHUVLQGLYLGXDOREMHFWLYHVDUH
UHJXODUO\UHYLHZHGWRbHQVXUHUHOHYDQFHWREXVLQHVV
strategy and are set and approved annually by the
&KDLUbRIWKH5HPXQHUDWLRQ&RPPLWWHHDQG&KDLUPDQ
RIbWKH%RDUGRI'LUHFWRUV
Stretched targets for business performance are set
annually based on the business plan of the Group as
approved by the Board of Directors.
Performance against these targets and bonus
outcomes are assessed by the Remuneration
Committee, which may recommend an adjustment
WRbWKHSD\RXWOHYHOZKHUHLWFRQVLGHUVWKHRYHUDOO
performance of the Company or the individuals
contribution warrants a higher or lower outcome.
Malus and clawback provisions apply. Further
details may be found in the Additional notes to the
remuneration policy table section on page 95.
Maximum opportunity
7KH&KLHI([HFXWLYH2FHUVPD[LPXP0,3
RSSRUWXQLW\LVVHWDWRIbDQQXDOEDVHVDODU\
Threshold, target and maximum bonus opportunity
levels are as follows:
Threshold: 5% of base salary
Target: 70% of base salary
Maximum: 130% of base salary.
Maximum payout is based on business performance
targets (up to 120% of salary) and individual
performance (up to 10% of salary).
Performance metrics
The MIP awards are based on business metrics linked
to our business strategy. These may include but are not
OLPLWHGWRPHDVXUHVRIYROXPHUHYHQXHSURWFDVK
DQGbRSHUDWLQJHFLHQFLHV
Details related to the key performance indicators and
individual objectives can be found in the Annual Report
on Remuneration on page 101.
Deferral of MIP
After careful consideration of the Chief Executive
2FHUVSD\PL[WKH%RDUGbGHFLGHGWKDWVLQFH
long-term incentives make up a proportion of
UHPXQHUDWLRQDQGVKDUHRZQHUVKLSUHTXLUHPHQWV
ZHUHbLQWURGXFHGLQ'HFHPEHUWKH&KLHI([HFXWLYH
2FHUVUHPXQHUDWLRQZDVDSSURSULDWHO\DOLJQHGZLWK
the interests of the shareholders and therefore would
PSP (Performance Share Plan)
Purpose and link to strategy
7RDOLJQWKH&KLHI([HFXWLYH2FHUVbLQWHUHVWVZLWKWKHLQWHUHVWVRIVKDUHKROGHUV
and increase the ability of the Group to attract and reward individuals with
exceptional skills.
Operation
7KH&KLHI([HFXWLYH2FHULVJUDQWHGFRQGLWLRQDODZDUGVRIVKDUHVZKLFKYHVW
after three years, subject to the achievement of performance conditions and
continued service. Grants take place annually, normally every March.
3HUIRUPDQFHFRQGLWLRQVDQGWKHDVVRFLDWHGWDUJHWVDUHUHYLHZHGDQGbGHWHUPLQHG
SULRUWRWKHVWDUWRIHDFKSHUIRUPDQFHSHULRGWRbHQVXUHWKDWWKH\VXSSRUW
the long-term strategies and objectives of the Group and are aligned with
shareholders interests.
Dividends will be paid on vested shares where the performance conditions are
achieved at the end of the three-year period.
0DOXVDQGFODZEDFNSURYLVLRQVDSSO\)XUWKHUGHWDLOVPD\EHIRXQGLQbWKH
Additional notes to the remuneration policy table section on page 95.
Maximum opportunity
1RUPDODZDUGVKDYHDIDFHYDOXHXSWRRIEDVHVDODU\,QbH[FHSWLRQDO
circumstances only, the Board has the discretion to grant awards up to 450%
RIbEDVHVDODU\
Performance metrics
Vesting of awards is subject to the three-year Group performance conditions
EDVHGRQWZRHTXDOO\ZHLJKWHGPHDVXUHV
&RPSDUDEOHHDUQLQJVSHUVKDUH&RPSDUDEOH(36DQG
WKHSHUFHQWDJHRIQHWRSHUDWLQJSURWDIWHUWD[GLYLGHGE\WKHFDSLWDOHPSOR\HG
(ROIC). Capital employed is calculated as the average of net borrowings and
VKDUHKROGHUVHTXLW\WKURXJKWKH\HDU
Following the end of the three-year period, the Remuneration Committee will
determine the extent to which performance conditions have been met and, in
turn, the level of vesting. Participants may receive vested awards in the form of
VKDUHVRUDFDVKHTXLYDOHQW
For both performance measures, achieving threshold performance results in
vesting of 25% of the award and maximum performance results in vesting of
100% of the award.
Performance share awards will lapse if the Remuneration Committee determines
that the performance criteria have not been met. If, at the end of the vesting
SHULRGWKHSHUIRUPDQFHFRQGLWLRQVKDYHEHHQVDWLVHGSDUWLFLSDQWVEHFRPH
HQWLWOHGWRUHFHLYHVKDUHVRUDFDVKHTXLYDOHQW
Holding period
7KH%RDUGKDVMXGJHGWKDWWKH&KLHI([HFXWLYH2FHUVUHPXQHUDWLRQ
LVbDSSURSULDWHO\DOLJQHGZLWKORQJWHUPVKDUHKROGHUVLQWHUHVWVWKURXJKWKH
OHQJWKbRIWKHbYHVWLQJSHULRGDQGWKHXVHbRIPLQLPXPVKDUHKROGLQJJXLGHOLQHV
1RbDGGLWLRQDOKROGLQJSHULRGZLOOEHLQWURGXFHGKRZHYHUWKLVSRLQWZLOOEHNHSW
under consideration.
Adjustments
,QWKHHYHQWRIDQHTXLW\UHVWUXFWXULQJWKH5HPXQHUDWLRQ&RPPLWWHHPD\
PDNHbDQHTXLWDEOHDGMXVWPHQWWRWKHWHUPVRIWKHSHUIRUPDQFHVKDUHDZDUG
by adjusting the number and kind of shares which have been granted or may
be granted and/or making provision for payment of cash in respect of any
outstanding performance share award.
Change in control
In the event of change of control, unvested performance share awards held
by participants vest immediately on a pro-rated basis if the Remuneration
not introduce MIP deferral. However this point will be &RPPLWWHHGHWHUPLQHVWKDWWKHSHUIRUPDQFHFRQGLWLRQVKDYHEHHQVDWLVHG
kept under consideration. RUbZRXOGKDYHEHHQOLNHO\WREHVDWLVHGDWWKHHQGRIWKHSHUIRUPDQFHSHULRG
unless the Remuneration Committee determines that substitute performance
share awards may be used in place of the previous awards.

COC016_.indb 94 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 95

Strategic Report
Additional notes to the remuneration policy table
&KLHI([HFXWLYH2FHUVUHPXQHUDWLRQSROLF\LOOXVWUDWLRQ
3%
Maximum 16% 9% 20% 52%

4%
23% 14% 16% 43%

Corporate Governance
Target
10%
Minimum 57% 33%

Base pay &DVKDQGQRQFDVKEHQHWV Pension MIP PSP

Minimum
5HHFWV[HGUHPXQHUDWLRQRQO\LHEDVHVDODU\SHQVLRQDQGRWKHUEHQHWVDFWXDOEHQHWVJXUHIRU

Target

Financial Statements
5HHFWV[HGUHPXQHUDWLRQDQ0,3SD\RXWRIRIEDVHVDODU\DQG363YHVWLQJDWRIEDVHVDODU\

Maximum
5HHFWV[HGUHPXQHUDWLRQDQ0,3SD\RXWRIRIEDVHVDODU\DQG363YHVWLQJDWRIEDVHVDODU\
Component 0LQLPXPV 7DUJHWV 0D[LPXPV
Fixed Base salary1 909 909 909
Pension 164 164 164
&DVKDQGQRQFDVKEHQHWV2 529 549 565
Variable MIP 636 1,182
PSP 1,650 3,000
Total 1,602 3,908 5,820

Swiss Statutory Reporting

1. Represents the annual base salary after the increase which was applied in 1 May 2016.
2. (633HPSOR\HUFRQWULEXWLRQVPD\YDU\GHSHQGLQJRQWKH0,3SD\RXWDQGLIWKH&KLHI([HFXWLYH2FHUGHFLGHVWRFRQWULEXWHDSRUWLRQ

ESOP (Employee Stock Option Plan)

7KH(623ZDVUHSODFHGE\WKH363LQDQGWKHODVWJUDQWXQGHUWKH(623WRRNSODFHLQ'HFHPEHUb$OWKRXJKWKH%RDUGGRHV
QRWLQWHQGWRDZDUGXQGHUWKH(623JRLQJIRUZDUGWKHUHDUHVWLOORXWVWDQGLQJVKDUHRSWLRQDZDUGVZKLFKbPD\EHH[HUFLVHGLQIXWXUH\HDUV
$ZDUGVbYHVWLQRQHWKLUGLQFUHPHQWVHDFK\HDUIRUWKUHH\HDUVDQGFDQEHH[HUFLVHGIRUXSWR\HDUVIURPWKHGDWHRIWKHDZDUG

Malus and clawback provision for variable pay plans

7KH0,3363(623DQG(633SODQVLQFOXGHbPDOXVSURYLVLRQVbZKLFKJLYHWKH5HPXQHUDWLRQ&RPPLWWHHDQGRUWKH%RDUGGLVFUHWLRQWR
MXGJHbWKDWDQDZDUGVKRXOGODSVHZKROO\RUSDUWO\LQHYHQWRIPDWHULDOPLVVWDWHPHQWRIQDQFLDOUHVXOWVDQGRUPLVFRQGXFW
Supplementary Information

The Remuneration Committee and/or Board also has the discretion to determine that clawback should be applied to awards under the MIP,
363(623DQG(633SODQVIRUWKH&KLHI([HFXWLYH2FHUDQGPHPEHUVRIWKH2SHUDWLQJ&RPPLWWHH&ODZEDFNFDQSRWHQWLDOO\EHDSSOLHG
WRbSD\PHQWVRUYHVWLQJIRUXSWRDWZR\HDUSHULRGIROORZLQJWKHSD\PHQWRUYHVWLQJ

Shareholding guidelines
,QRUGHUWRVWUHQJWKHQWKHOLQNZLWKVKDUHKROGHUVLQWHUHVWVWKH&KLHI([HFXWLYH2FHULVUHTXLUHGWRKROGVKDUHVLQWKH&RPSDQ\bHTXDOLQ
YDOXHWRRIDQQXDOEDVHVDODU\0HPEHUVRIWKH2SHUDWLQJ&RPPLWWHHDUHUHTXLUHGWRKROGRIDQQXDOEDVHVDODU\7KHUHTXLUHG
VKDUHKROGLQJVDUHWREHDFKLHYHGZLWKLQDYH\HDUSHULRGVWDUWLQJIURPWKHGDWHRIWKHUVW363JUDQW'HFHPEHURUODWHUEDVHGRQ
the date of the appointment.

Policy on recruitment/appointment
$QQXDOEDVHVDODU\DUUDQJHPHQWVIRUWKHDSSRLQWPHQWRIDQb([HFXWLYH'LUHFWRUZLOOEHVHWFRQVLGHULQJPDUNHWUHOHYDQFHVNLOOVH[SHULHQFH
internal comparisons and cost. The Remuneration Committee may recommend an appropriate initial annual base salary below relevant
market levels. In such situations, the Remuneration Committee may make a recommendation to realign the level of base salary in
WKHIRUWKFRPLQJ\HDUV$VKLJKOLJKWHGDERYHDQQXDOEDVHVDODU\JDSVPD\UHVXOWLQH[FHSWLRQDOUDWHVRIVDODU\LQFUHDVHLQWKHVKRUW

COC016_.indb 95 3/16/17 2:36 PM

 Coca-Cola HBC
96 2016 Integrated Annual Report

Directors Remuneration Report continued

WHUPVXEMHFWbWRDQLQGLYLGXDOVSHUIRUPDQFH7KHGLVFUHWLRQLVUHWDLQHGWRRHUDQDQQXDOEDVHVDODU\QHFHVVDU\WRPHHWWKHLQGLYLGXDO
FLUFXPVWDQFHVbRIWKHUHFUXLWHG([HFXWLYH'LUHFWRUDQGWRHQDEOHWKHKLULQJRIDQLQGLYLGXDOZLWKWKHQHFHVVDU\VNLOOVDQGH[SHUWLVH
7KHPD[LPXPOHYHORIYDULDEOHSD\WKDWPD\EHRHUHGZLOOIROORZWKHUXOHVRIWKH0,3DQGLVFDSSHGDWRIWKHUHOHYDQWLQGLYLGXDOV
DQQXDOEDVHVDODU\7KHPD[LPXPOHYHORIHTXLW\VKDUHSD\WKDWPD\EHRHUHGZLOOIROORZWKHb363UXOHVDQGLVFDSSHGDWRIWKHUHOHYDQW
LQGLYLGXDOVDQQXDOEDVHVDODU\7KHW\SLFDODZDUGLVQRWH[SHFWHGWRVXUSDVVRIEDVHVDODU\'LHUHQWSHUIRUPDQFHPHDVXUHVPD\EHVHW
LQLWLDOO\IRUWKHDQQXDOERQXVWDNLQJLQWRFRQVLGHUDWLRQWKHSRLQWLQWKHQDQFLDO\HDUWKDWDQHZ([HFXWLYH'LUHFWRUMRLQV7KHDERYHOLPLWVGRQRW
include the value of any buyout arrangements.
%HQHWVZLOOEHSURYLGHGLQOLQHZLWKWKRVHRHUHGDFFRUGLQJWRWKH*URXSVSROLF\IRURWKHUHPSOR\HHV,ID'LUHFWRULVUHTXLUHGWRUHORFDWH
EHQHWVPD\EHSURYLGHGDVSHUWKH*URXSVLQWHUQDWLRQDOWUDQVIHUSROLF\ZKLFKPD\LQFOXGHWUDQVIHUDOORZDQFHWD[HTXDOLVDWLRQWD[DGYLFHDQG
support, housing, cost of living, schooling, travel and relocation costs.
The Remuneration Committee may consider recommending the buying out of incentive awards that an individual would forfeit by accepting
WKHDSSRLQWPHQWXSWRDQHTXLYDOHQWYDOXHLQVKDUHVRULQFDVK,QFDVHRIVKDUHH[FKDQJHWKH%RDUGZLOODSSURYHDJUDQWRIVKDUHVXQGHUWKH
PSP. When deciding on a potential incentive award buyout and in particular the level and value thereof, the Remuneration Committee will be
informed of the time and performance pro-rated level of any forfeited award.

Termination payments
7KH6ZLVV2UGLQDQFHDJDLQVW([FHVVLYH&RPSHQVDWLRQLQ/LVWHG&RPSDQLHVOLPLWVWKHDXWKRULW\RIWKH%RDUGbWRGHWHUPLQHFRPSHQVDWLRQ
Limitations include the prohibition on certain types of severance compensation.
Our governance framework ensures that the Group uses the right channels to support reward decisions. In the case of early termination,
the non-Executive Directors would be entitled to their fees accrued as of the date of termination, but are not entitled to any additional
FRPSHQVDWLRQ7KH&KLHI([HFXWLYH2FHUVHPSOR\PHQWFRQWUDFWGRHVQRWFRQWDLQDQ\SURYLVLRQVIRUSD\PHQWVRQWHUPLQDWLRQ1RWLFH
SHULRGVDUHVHWIRUXSWRVL[PRQWKVDQGQRQFRPSHWHFODXVHVDUHPRQWKVHHFWLYHLQ7KHQRWLFHSHULRGDQWLFLSDWHVWKDWXSWR
VL[bPRQWKVSDLGJDUGHQOHDYHPD\EHSURYLGHG6LPLODUO\XSWRPRQWKVRIEDVHVDODU\PD\EHSDLGRXWLQUHODWLRQWRWKHQRQFRPSHWHSHULRG
In case of future terminations, payments will be made in accordance with the termination policy below.
Good leaver
(retirement at 58 or later / at Good leaver Bad leaver
Pay element least 10 years continued service) (redundancy, injury, disability) (resignation, dismissal) Death in service
Base salary and other 3D\PHQWLQOLHXRIQRWLFHLVQRWSHUPLVVLEOH7KH&RPSDQ\FRXOGDVNWKH&KLHI([HFXWLYH2FHUWREHRQSDLG
EHQHWV JDUGHQOHDYHbIRUXSbWRbVL[bPRQWKV
ESPP 8QYHVWHGVKDUHVKHOGLQWKH(633ZLOOYHVWXSRQ 8QYHVWHGVKDUHVXQGHU $YDLODEOHSODQVKDUHVbZLOOEH
termination the ESPP are forfeited transferred to heirs
MIP A pro-rated payout as of A pro-rated payout as of In the event of resignation A pro-rated payout will
the date of retirement will the date of leaving will be or dismissal, as per Swiss be applied and will be
be applied applied Law, Chief Executive paid immediately to heirs
2FHULVHQWLWOHGWRD based on the latest rolling
pro-rated MIP payout. estimate
PSP / ESOP 8QYHVWHGSHUIRUPDQFH All unvested options All unvested options and All unvested options and
shares and options are and performance shares performance share awards performance share awards
retained and will continue awards immediately vest immediately lapse without immediately vest subject
to vest as normal subject to the extent that the any compensation. to time and performance
to performance conditions Remuneration Committee In the event of resignation, pro-ration.
as set out in the award determines that the all vested options must Any options which vest
agreement. SHUIRUPDQFHbFRQGLWLRQV be exercised within six are exercisable within 12
have been met, or are likely months from the date months from the date
to be met at the end of the RIbWHUPLQDWLRQ RIbWHUPLQDWLRQ
three-year performance 8SRQGLVPLVVDODOOYHVWHG
period. options must be exercised
Any options which vest within 30 days from the
are exercisable within 12 date of termination.
months from the date of
termination.

COC016_.indb 96 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 97

Strategic Report
Corporate events
,QWKHHYHQWRIDQHTXLW\UHVWUXFWXULQJWKH5HPXQHUDWLRQ&RPPLWWHHPD\PDNHDQHTXLWDEOHDGMXVWPHQWWRWKHWHUPVRIWKHSHUIRUPDQFH
share award by adjusting the number and kind of shares which have been granted or may be granted and/or making provision for payment of
cash in respect of any outstanding performance share award.
In the event of change of control, unvested performance share awards held by participants vest immediately on a pro-rated basis if the
5HPXQHUDWLRQ&RPPLWWHHGHWHUPLQHVWKDWWKHSHUIRUPDQFHFRQGLWLRQVKDYHEHHQVDWLVHGRUZRXOGKDYHEHHQOLNHO\WREHVDWLVHGDWWKH
end of the performance period, unless the Remuneration Committee determines that substitute performance share awards may be used in

Corporate Governance
place of the previous awards.

Service contracts
0U'LPLWULV/RLVWKH&KLHI([HFXWLYH2FHUKDVDQHPSOR\PHQWFRQWUDFWZLWKWKH&RPSDQ\HHFWLYHb-DQXDU\WKDWRXWOLQHVD
VL[PRQWKQRWLFHSHULRG$VQRWHGLQWKHWHUPLQDWLRQSD\PHQWVWKH&KLHI([HFXWLYH2FHUVHPSOR\PHQWFRQWUDFWGRHVQRWLQFOXGHDQ\
WHUPLQDWLRQEHQHWVRWKHUWKDQDVPDQGDWHGE\6ZLVVODZ7KH6ZLVV&RGHRI2EOLJDWLRQVUHTXLUHVHPSOR\HUVWRSD\VHYHUDQFHZKHQDQ
HPSOR\PHQWUHODWLRQVKLSZLWKDQbHPSOR\HHRIDWOHDVW\HDUVRIDJHFRPHVWRDQHQGDIWHU\HDUVRUPRUHRIVHUYLFH
7KH&KLHI([HFXWLYH2FHULVDOVRHQWLWOHGWRUHLPEXUVHPHQWRIDOOUHDVRQDEOHH[SHQVHVLQFXUUHGLQWKHLQWHUHVWVRIWKH&RPSDQ\,QDFFRUGDQFH
with the Swiss Ordinance against excessive compensation in listed companies, there are no sign-on policies/provisions for the appointment
RIWKH&KLHI([HFXWLYH2FHU
7KHWDEOHEHORZSURYLGHVGHWDLOVRIWKHFXUUHQWVHUYLFHFRQWUDFWVDQGWHUPVRIDSSRLQWPHQWIRUWKH&KLHI([HFXWLYH2FHUDQG

Financial Statements
other Directors.
8QH[SLUHGWHUPRIVHUYLFH
Date originally appointed to Date appointed to the contract or appointment
Name Title WKHb%RDUGRIWKH&RPSDQ\ Board of the Company DVbQRQ([HFXWLYH'LUHFWRU
Anastassis G. David Chairman and 27 July 2006 21 June 2016 One year
QRQ([HFXWLYHb'LUHFWRU
Dimitris Lois &KLHI([HFXWLYH2FHU 4 July 2011 21 June 2016 ,QGHQLWHWHUPLQDEOH
on six months notice
Ahmet C. Bozer1 Non-Executive Director 21 June 2016 21 June 2016 One year
George A. David2 Non-Executive Director 2 January 1981
Olusola (Sola) Non-Executive Director 24 June 2015 21 June 2016 One year

Swiss Statutory Reporting

David-Borha
William W. (Bill) Douglas III3 Non-Executive Director 21 June 2016 21 June 2016 One year
Irial Finan4 Non-Executive Director 23 October 1997 -
Antonio DAmato Non-Executive Director b-DQXDU\ 21 June 2016 One year
Reto Francioni5 Senior Independent 21 June 2016 21 June 2016 One year
non-Executive Director
Sir Michael Llewellyn-Smith6 Senior Independent 6 September 2000
non-Executive Director
Nigel Macdonald7 Non-Executive Director 17 June 2005
Anastasios I. Leventis Non-Executive Director 25 June 2014 21 June 2016 One year
Christo Leventis Non-Executive Director 25 June 2014 21 June 2016 One year
Supplementary Information

Jos Octavio Reyes Non-Executive Director 25 June 2014 21 June 2016 One year
Alexandra Papalexopoulou Non-Executive Director 24 June 2015 21 June 2016 One year
Robert Ryan Rudolph8 Non-Executive Director 21 June 2016 21 June 2016 One year
John P. Sechi Non-Executive Director 25 June 2014 21 June 2016 One year
1. Mr. Ahmet C. Bozer was appointed to the Board on 21 June 2016.
2. Mr. George A. David retired from the Board and the Social Responsibility Committee on 21 June 2016.
3. Mr. William W. (Bill) Douglas III was appointed to the Board and the Audit and Risk Committee on 21 June 2016.
4. Mr. Irial Finan retired from the Board on 21 June 2016.
5. Mr. Reto Francioni was appointed to the Board, the Remuneration Committee and the Nomination Committee on 21 June 2016.
6. Sir Michael Llewellyn-Smith retired from the Board, the Remuneration Committee, the Nomination Committee and the Social Responsibility Committee
RQb-XQH
7. Mr. Nigel Macdonald retired from the Board and the Audit and Risk Committee on 21 June 2016.
8. Mr. Robert Ryan Rudolph was appointed to the Board on 21 June 2016.
7KH&KLHI([HFXWLYH2FHUVVHUYLFHFRQWUDFWDQGWKHWHUPVDQGFRQGLWLRQVRIDSSRLQWPHQWRIWKHQRQ([HFXWLYH'LUHFWRUVDUHRSHQIRU
LQVSHFWLRQE\WKHSXEOLFDWWKHUHJLVWHUHGRFHRIWKH*URXS

COC016_.indb 97 3/16/17 2:36 PM

 Coca-Cola HBC
98 2016 Integrated Annual Report

Directors Remuneration Report continued

1RQ([HFXWLYH'LUHFWRUVSROLF\DQGIHHV
&RPSHQVDWLRQIRUQRQ([HFXWLYH'LUHFWRUVLVFRQVLVWHQWZLWKPDUNHWSUDFWLFHDQGVXFLHQWWRDWWUDFWDQGUHWDLQKLJKTXDOLW\QRQ([HFXWLYH
Directors with the right talent, values and skills necessary to provide oversight and support to management to grow the business, support
the Companys strategic framework and maximise shareholder value. Non-Executive Directors pay is set at a level that will not call into
TXHVWLRQWKHREMHFWLYLW\RIWKH%RDUG:KHQFRQVLGHULQJPDUNHWOHYHOVFRPSDUDEOHFRPSDQLHVW\SLFDOO\LQFOXGHWKRVHLQWKH)76(LQGH[ZLWK
similar positionings as the Company, other Swiss companies with similar market caps and/or revenues, and other relevant European listed
companies.
7KH*URXSVFRPSHQVDWLRQRIQRQ([HFXWLYH'LUHFWRUVLQFOXGHVDQDQQXDO[HGIHHSOXVDGGLWLRQDOIHHVIRUVHUYLQJRQDQ\%RDUGFRPPLWWHHV
The Company does not compensate new non-Executive Directors for any forfeited share awards in previous employment. Non-Executive
'LUHFWRUVGRQRWUHFHLYHDQ\IRUPRIYDULDEOHFRPSHQVDWLRQQRUDQ\RWKHUEHQHWVLQFDVKRULQNLQG7KH\DUHQRWHQWLWOHGWRVHYHUDQFH
payments in the event of termination of their appointment. They are entitled to reimbursement of all reasonable expenses incurred in the
interests of the Group.
Non-Executive Directors appointed during the remuneration policy period receive the same basic fee and, as appropriate, committee fee or
fees as existing non-Executive Directors.

Non-Executive Director fees for 2016

,QOLQHZLWKWKH'LUHFWRUVUHPXQHUDWLRQSROLF\IHHOHYHOVIRUQRQ([HFXWLYH'LUHFWRUVLQFOXGHDQDQQXDO[HGIHHSOXVDGGLWLRQDOIHHVIRU
PHPEHUVKLSRIb%RDUGFRPPLWWHHVZKHQDSSOLFDEOH$VVWDWHGLQbODVW\HDUV5HPXQHUDWLRQ5HSRUWQRQ([HFXWLYH'LUHFWRUIHHVKDYH
LQFUHDVHG7KHVHIHHVFDPHLQWRHHFWIROORZLQJWKH$QQXDO*HQHUDO0HHWLQJLQ-XQHDQGDUHVXPPDULVHGEHORZ
Non-Executive Chairmans fee
Non-Executive Vice-Chairmans fee
Base non-Executive Directors fee 
Senior Independent Directors fee 
Audit and Risk Remuneration Nomination Social Responsibility
Committee chairman fee (additional)    
Committee member fee (additional)    

Remuneration arrangements across the Group

7KHUHPXQHUDWLRQDSSURDFKIRUWKH&KLHI([HFXWLYH2FHUWKHPHPEHUVRIWKH2SHUDWLQJ&RPPLWWHHDQGVHQLRUPDQDJHPHQWLV
VLPLODU7KH&KLHI([HFXWLYH2FHUVWRWDOUHPXQHUDWLRQKDVDVLJQLFDQWO\KLJKHUSURSRUWLRQRIYDULDEOHSD\LQFRPSDULVRQZLWKbWKHUHVW
RIRXUHPSOR\HHV7KH&KLHI([HFXWLYH2FHUVUHPXQHUDWLRQZLOOLQFUHDVHRUGHFUHDVHLQOLQHZLWKEXVLQHVVSHUIRUPDQFHDOLJQLQJLWZLWK
shareholders interests.
The structure of the reward package for the wider employee population takes into account local market practice and is intended to attract
DQGbUHWDLQWKHULJKWWDOHQWEHFRPSHWLWLYHUHPXQHUDWHHPSOR\HHVIRUWKHLUFRQWULEXWLRQDQGOLQNWRWKH*URXSVSHUIRUPDQFH

Consideration of shareholder views

Shareholder views and the achievement of the Groups overall business strategies have been taken into account in formulating the
remuneration policy. Following shareholder feedback before and after the Annual General Meeting, the Remuneration Committee and
the Board consult with shareholders and meet with the largest institutional investors to gather feedback on the Companys remuneration
strategy and corporate governance. The Company would be happy to engage with shareholders in the future to discuss the outcomes of
WKHbUHPXQHUDWLRQSROLF\
In reviewing and determining remuneration, the Remuneration Committee takes into account the following:
WKHEXVLQHVVVWUDWHJLHVDQGQHHGVRIWKH&RPSDQ\
WKHYLHZVRIVKDUHKROGHUVRQ*URXSSROLFLHVDQGSURJUDPPHVRIUHPXQHUDWLRQ
PDUNHWFRPSDULVRQVDQGWKHSRVLWLRQLQJRIWKH*URXSVUHPXQHUDWLRQUHODWLYHWRRWKHUFRPSDUDEOHFRPSDQLHV
LQSXWIURPHPSOR\HHVUHJDUGLQJRXUUHPXQHUDWLRQSURJUDPPHV
the need for similar, performance-related principles for the determination of executive remuneration and the remuneration of other
HPSOR\HHVDQG
(QVXULQJWKDW%RDUGPHPEHUVWKH&KLHI([HFXWLYH2FHUDQG2SHUDWLQJ&RPPLWWHHPHPEHUVSOD\QRSDUWLQGHWHUPLQLQJWKHLURZQ
UHPXQHUDWLRQ7KH&KDLUPDQRIWKH5HPXQHUDWLRQ&RPPLWWHHDQGWKH&KLHI([HFXWLYH2FHUDUHQRWSUHVHQWZKHQWKH5HPXQHUDWLRQ
Committee and the Board discuss matters that pertain to their remuneration.
This ensures that the same performance-setting principles are applied for executive remuneration and other employees in the organisation.

COC016_.indb 98 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 99

Strategic Report
Annual Report on Remuneration
Introduction
This section of the Report provides detail on how we have implemented our remuneration policy in 2016, which was approved at our 2016
$QQXDO*HQHUDO0HHWLQJ$OLJQHGWRWKH8.UHPXQHUDWLRQUHSRUWLQJUHJXODWLRQVWKLVVHFWLRQLVVXEMHFWWRDQDGYLVRU\VKDUHKROGHUYRWHDWRXU
2017 Annual General Meeting.

Activities of the Remuneration Committee during 2016

Corporate Governance
During 2016, the key Remuneration Committee activities were to:
UHYLHZDQGVLJQRWKH'LUHFWRUV5HPXQHUDWLRQ5HSRUW
UHYLHZDQGUHFRPPHQGWKHEDVHVDODU\IRUWKH&KLHI([HFXWLYH2FHU
UHYLHZDQGDSSURYHEDVHVDODULHVIRUb2SHUDWLQJ&RPPLWWHHPHPEHUVDQGJHQHUDOPDQDJHUV
UHFRPPHQGWKH0,3SD\RXWIRUWKH&KLHI([HFXWLYH2FHU
UHYLHZDQGDSSURYHSD\RXWOHYHOVIRUWKH0,3LQUHODWLRQWR2SHUDWLQJ&RPPLWWHHPHPEHUVDQGbJHQHUDOPDQDJHUV
VHWDQGDSSURYH363WDUJHWV
UHYLHZbDZDUGOHYHOVIRU363DZDUGV
UHYLHZRIQRQ([HFXWLYH'LUHFWRUIHHV

Financial Statements
UHYLHZDQGDSSURYHWKHUHGHVLJQRIWKHFDVK/7,3SODQDSODQIRUPDQDJHUVEHORZWRSH[HFXWLYHOHYHO
UHYLVHWKH(633DGPLQLVWUDWLRQSURFHVV
UHYLHZSHQVLRQSODQVRIWKH*URXSDQG
review the governance around the approval of Executive Director pay decisions.

1RQ([HFXWLYH'LUHFWRUVUHPXQHUDWLRQIRUWKH\HDUHQGHG'HFHPEHU
Audit Social Senior
and Risk Remuneration Nomination Responsibility Independent
Base fee Committee Committee Committee Committee Director
      7RWDO
2016 2015

Swiss Statutory Reporting

George A. David1
Anastassis G. David 67,500 67,500 67,500
Christo Leventis2 35,000 35,000
Anastasios I. Leventis3 35,000 5,500 40,500
Irial Finan4 32,500 32,500 65,000
Antonio DAmato 67,500 5,250 5,250 78,000 75,000
Sir Michael Llewellyn-Smith5 32,500 5,000 5,000 5,000 47,500 95,000
Nigel Macdonald6 32,500 12,500 45,000 90,000
Jos Octavio Reyes7 67,500 5,250 72,750 72,500
John P. Sechi 67,500 13,150 80,650 77,500
Alexandra Papalexopoulou8 67,500 8,000 5,250 2,750 83,500 37,500
Supplementary Information

Olusola (Sola) David-Borha9 67,500 13,150 80,650 38,750

Ahmet C. Bozer10 35,000 35,000
William W. (Bill) Douglas III11 35,000 13,750 48,750
Reto Francioni12 35,000 2,750 5,500 7,500 50,750
Robert Ryan Rudolph13 35,000 35,000
1RQ([HFXWLYH'LUHFWRUIHHVZHUHUHYLVHGLQDQGWKHXSGDWHGIHHVDVSUHVHQWHGRQSDJHFDPHLQWRHHFWDIWHUWKH$*0LQ-XQH
1. 0U*HRUJH$'DYLGUHWLUHGIURPWKH%RDUGDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHRQ-XQH)RUWKHUVWKDOIRI0U*HRUJH$'DYLGZDLYHGDQ\IHHLQ
respect of his membership on the Board of Directors and any Board Committee.
2. )RU0U&KULVWR/HYHQWLVRQWRSRIWKHEDVHIHHRIWKH*URXSSDLGLQVRFLDOVHFXULW\FRQWULEXWLRQVDVUHTXLUHGE\6ZLVVOHJLVODWLRQ7KH*URXSKDVDSSOLHG
KDOI\HDUSHULRGEDVHIHH)RUWKHUVWKDOIRI0U&KULVWR/HYHQWLVZDLYHGDQ\IHHLQUHVSHFWRIKLVPHPEHUVKLSRQWKH%RDUGRI'LUHFWRUVDQGDQ\%RDUG&RPPLWWHH
3. )RU0U$QDVWDVLRV,/HYHQWLVWKH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRIDQGIRUWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHH&KDLUPDQVKLS)RUWKH
UVWKDOIRI0U$QDVWDVLRV,/HYHQWLVZDLYHGDQ\IHHLQUHVSHFWRIKLVPHPEHUVKLSRQWKH%RDUGRI'LUHFWRUVDQGDQ\%RDUG&RPPLWWHH
4. 0U,ULDO)LQDQUHWLUHGIURPWKH%RDUGRQ-XQHb7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI
5. Sir Michael Llewellyn-Smith retired from the Board, the Remuneration Committee, the Nomination Committee and the Social Responsibility Committee on
-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGIHHRIbbIRUWKH1RPLQDWLRQ&RPPLWWHH&KDLUPDQVKLSIRUWKH5HPXQHUDWLRQ&RPPLWWHH
&KDLUPDQVKLSIRU6HQLRU,QGHSHQGHQWPHPEHUVKLSIHHDQGEDVHIHH)RUWKHUVWKDOIRI6LU0LFKDHO/OHZHOO\Q6PLWKZDLYHGKLVPHPEHUVKLSIHH
on the Social Responsibility Committee.

COC016_.indb 99 3/16/17 2:36 PM

 Coca-Cola HBC
100 2016 Integrated Annual Report

Directors Remuneration Report continued

6. Mr. Nigel Macdonald retired from the Board and the Audit and Risk Committee Chairmanship on 21 June 2016. The Group has applied a half year period fee
RIbbIRUWKH$XGLWDQG5LVN&RPPLWWHHDQGEDVHIHH
7. )RU0U-RV2FWDYLR5H\HVRQWRSRIWKHEDVHDQG6RFLDO5HVSRQVLELOLW\&RPPLWWHHPHPEHUVKLSIHHVRIWKH*URXSSDLGLQVRFLDOVHFXULW\FRQWULEXWLRQV
DVUHTXLUHGE\6ZLVVOHJLVODWLRQ
8. )RU0UV$OH[DQGUD3DSDOH[RSRXORXRQWRSRIWKHIXOO\HDUEDVHIHHRIDQGIRU1RPLQDWLRQ&RPPLWWHHPHPEHUVKLSWKH*URXSKDVDSSOLHGDKDOI\HDU
SHULRGIHHRIbbIRUWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHKDOI\HDUSHULRGPHPEHUVKLSIHHRIDVPHPEHURIWKH5HPXQHUDWLRQ&RPPLWWHHDQGKDOI\HDU
SHULRGIHHRIDV&KDLURIWKH5HPXQHUDWLRQ&RPPLWWHH
9. )RU0UV'DYLG%RUKDRQWRSRIWKHEDVHDQG$XGLW&RPPLWWHHPHPEHUVKLSIHHVRIWKH*URXSSDLGLQVRFLDOVHFXULW\FRQWULEXWLRQVDVUHTXLUHGE\
Swiss legislation.
10. 0U$KPHW&%R]HUZDVDSSRLQWHGWRWKH%RDUGRQ-XQHb7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI
11. 0U:LOOLDP:%LOO'RXJODV,,,ZDVDSSRLQWHGWRWKH%RDUGDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQHb7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI
DQGIRUWKH$XGLWDQG5LVN&RPPLWWHH
12. Mr. Reto Francioni was appointed to the Board, the Remuneration Committee and the Nomination Committee on 21 June 2016. For Mr. Reto Francioni, on top of the
IHHVRIWKH*URXSSDLGLQVRFLDOVHFXULW\FRQWULEXWLRQVDVUHTXLUHGE\6ZLVVOHJLVODWLRQb7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRIb
IRUWKH1RPLQDWLRQ&RPPLWWHHIRUWKH5HPXQHUDWLRQ&RPPLWWHHDQGIRU6HQLRU,QGHSHQGHQWPHPEHUVKLSIHH
13. 0U5REHUW5\DQ5XGROSKZDVDSSRLQWHGWRWKH%RDUGRQ-XQH)RU0U5REHUW5\DQ5XGROSKRQWRSRIWKHEDVHKDOI\HDUIHHVRIWKH*URXSSDLG
LQVRFLDOVHFXULW\FRQWULEXWLRQVDVUHTXLUHGE\6ZLVVOHJLVODWLRQ
1RQ([HFXWLYH'LUHFWRUVGRQRWSDUWLFLSDWHLQDQ\RIWKH*URXSVLQFHQWLYHSODQVQRUGRWKH\UHFHLYHDQ\UHWLUHPHQWRURWKHUWD[DEOHEHQHWV

Advisers to the Committee

7KH&KDLUPDQRIWKH%RDUGWKH&KLHI([HFXWLYH2FHUWKH*URXS+XPDQ5HVRXUFHV'LUHFWRUWKH*URXS5HZDUGV'LUHFWRUDQGWKH*HQHUDO
Counsel regularly attend meetings of the Remuneration Committee.
While the Remuneration Committee does not have external advisers, in 2016 it authorised management to work with external consultancy
UP:LOOLV7RZHUV:DWVRQWRSURYLGHLQGHSHQGHQWDGYLFHRQDGKRFUHPXQHUDWLRQLVVXHVGXULQJWKH\HDU7KHVHVHUYLFHVDUHFRQVLGHUHG
WRbKDYHEHHQLQGHSHQGHQWDQGUHOHYDQWWRWKHPDUNHWDQG:LOOLV7RZHUV:DWVRQGRHVQRWKDYHDQ\RWKHUFRQQHFWLRQZLWKWKH*URXS
7KHbWRWDObFRVWLQFRQQHFWLRQZLWKWKLVZRUNZDV:LOOLV7RZHUV:DWVRQDUHbPHPEHUVRIWKH5HPXQHUDWLRQ&RQVXOWDQWV*URXS
DQGbSURYLGHDGYLFHLQOLQHZLWKLWV&RGHRI%XVLQHVV&RQGXFW

6LQJOHJXUHWDEOH
6LQJOHWRWDOJXUHRIUHPXQHUDWLRQIRUWKH&KLHI([HFXWLYH2FHUbIRUWKH\HDUHQGHG'HFHPEHU
Cash and non-cash Long-term Retirement
Base pay1 EHQHWV2 Annual bonus3 incentives4 EHQHWV 7RWDOVLQJOHJXUH
V V V V V V
Dimitris Lois 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
&KLHI([HFXWLYH2FHU 899 830 555 1,044 647 857 665 139 157 143 2,923 3,012
1. %DVHSD\LQFOXGHVWKHPRQWKO\LQVWDOPHQWVOLQNHGZLWKWKHEDVHVDODU\IRU$VDODU\LQFUHDVHZDVDSSOLHGWRWKHEDVHVDODU\HHFWLYHIURP0D\
2. 8QGHU&DVKDQGQRQFDVKEHQHWVZHLQFOXGHWKHYDOXHRIDOOEHQHWV7KHVHDUHRXWOLQHGLQWKH&DVKDQGQRQFDVKEHQHWVVHFWLRQEHORZ
3. Annual bonus for 2016 includes the MIP payout, receivable early in 2017 for the 2016 performance year.
4. /RQJWHUPLQFHQWLYHVUHHFWVVKDUHRSWLRQVWKDWYHVWHGWRWKH&KLHI([HFXWLYH2FHULQ7KHYDOXHDERYHUHHFWVWKHQXPEHURIVKDUHRSWLRQVPXOWLSOLHGE\WKH
PDUNHWSULFHDWYHVWLQJPLQXVWKHH[HUFLVHSULFHDWJUDQW3HUIRUPDQFHVVKDUHVZHUHDZDUGHGIRUWKHUVWWLPHLQDQGDUHQRWGXHWRYHVWXQWLO

Fixed pay for 2016

Base salary
'XULQJWKH\HDUWKH5HPXQHUDWLRQ&RPPLWWHHUHFRPPHQGHGDQGWKH%RDUGDSSURYHGDVDODU\LQFUHDVHIRUWKH&KLHI([HFXWLYH2FHURI
UHVXOWLQJLQDEDVHVDODU\RIHHFWLYH0D\:KHQDSSURYLQJWKLVLQFUHDVHWKH&RPPLWWHHWRRNLQWRFRQVLGHUDWLRQEDVH
salary increases across the organisation, and alignment and competitiveness versus peers in the FTSE. The salary increase rate for the
Swiss-based employees is 1.7%.

5HWLUHPHQWEHQHWV
7KH&KLHI([HFXWLYH2FHUUHFHLYHGDUHWLUHPHQWEHQHWRIRIEDVHVDODU\GXULQJZKLFKLVDOLJQHGWRWKHUHWLUHPHQWEHQHW
SURYLGHGXQGHU6ZLVVODZDQGEDVHGRQWKHDJHEUDFNHWVGHQHGE\IHGHUDO6ZLVVOHJLVODWLRQ

&DVKDQGQRQFDVKEHQHWV
'XULQJWKH&KLHI([HFXWLYH2FHUUHFHLYHGDGGLWLRQDOEHQHWVLQFOXGLQJFRVWRIOLYLQJDQGIRUHLJQH[FKDQJHUDWHDGMXVWPHQW
SULYDWHPHGLFDOLQVXUDQFH&RPSDQ\FDUDOORZDQFHKRXVLQJDOORZDQFHWULSDOORZDQFHWD[DVVLVWDQFH
DQGOLQJVXSSRUW&RPSDQ\PDWFKLQJFRQWULEXWLRQUHODWHGWRWKH(633UHHFWLQJWKHPD[LPXPPDWFKRIXQGHUWKH
SODQWD[HTXDOLVDWLRQDQGWKHYDOXHRIVRFLDOVHFXULW\FRQWULEXWLRQV7KHGHFUHDVHLQWD[HTXDOLVDWLRQLQFRPSDULVRQ
WRWKHSULRU\HDULVGULYHQE\FKDQJHVLQHHFWLYHWD[UDWHVb&RVWRIOLYLQJDQGH[FKDQJHUDWHDGMXVWPHQWbKDYHbLQFUHDVHGFRPSDUHG
WRSULRU\HDUGULYHQE\WKHPDFURHFRQRPLFFRQGLWLRQVLQ6ZLW]HUODQG7KH&RPSDQ\PDWFKLQJFRQWULEXWLRQUHODWHGWR(633KDVbLQFUHDVHG
versus prior years, driven by the increased 2015 MIP payout award received in March 2016.

COC016_.indb 100 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 101

Strategic Report
Variable pay for 2016
MIP performance outcomes 2016
7KH&KLHI([HFXWLYH2FHUUHFHLYHGDFDVKERQXVUHHFWLQJQDQFLDODQGLQGLYLGXDOSHUIRUPDQFHDFKLHYHGGXULQJWKHQDQFLDO
SHUIRUPDQFH\HDU7KHQDQFLDOPHWULFVWKHDVVRFLDWHGWDUJHWVDQGOHYHORIDFKLHYHPHQWDUHVHWRXWEHORZ

Threshold Target Maximum Payout

0% 15% 30% (% of base salary)

Corporate Governance
Volume
1,868 2,075 2,179
(m unit cases)
2,058 13.8%
25%
NSR
5,733 6,370 6,688
P
6,219 11.4%
25%
Comparable
461 512 553

Financial Statements
EBIT
P 518 17.0%
25%
OpEx %
28.6 26.0 25.3
of NSR
25.8 19.6%
25%
Total Working 5.66
7.79 7.08
Capital Days Achieved
4XDOLHUWR9ROXPH -1.14

Swiss Statutory Reporting

performance measure
Threshold

Target

7RWDOQDQFLDOSHUIRUPDQFH 61.8% Maximum

measures payout
Actual

$VRXWOLQHGLQWKHWDEOHDERYHQDQFLDOSHUIRUPDQFHZDVPHDVXUHGHTXDOO\DJDLQVWYROXPHPLOOLRQXQLWFDVHVQHWVDOHVUHYHQXH

165bPFRPSDUDEOH(%,7PDQGRSHUDWLQJH[SHQVHUDWLRRI165WDUJHWVZLWKDWRWDOZRUNLQJFDSLWDOGD\SHUIRUPDQFHXQGHUSLQ
IRUbWKHYROXPHSHUIRUPDQFHPHDVXUHb
Above-target performance for comparable EBIT and operating expense ratio and just-below-target performance for volume and NSR
Supplementary Information

UHVXOWVLQDSD\RXWRIRIEDVHVDODU\WRWKH&KLHI([HFXWLYH2FHUUHSUHVHQWLQJRIPD[LPXPRSSRUWXQLW\IRUWKHEXVLQHVV
performance measures.
$WWKHEHJLQQLQJRIWKH5HPXQHUDWLRQ&RPPLWWHHVHWLQGLYLGXDOSHUIRUPDQFHREMHFWLYHVIRUWKH&KLHI([HFXWLYH2FHU7KHVH
objectives were based on improving EBIT margin versus prior year, growing volume in established, developing and emerging countries,
growing transactions ahead of volume, sustaining employee engagement levels and maintaining beverage industry leadership in relation to
Corporate Social Responsibility.
'XULQJWKH\HDUWKH&(2DFKLHYHGIRXURXWRIWKHYHVWUDWHJLFREMHFWLYHVQRWHGDERYH&RPSDUDEOH(%,7PDUJLQLPSURYHGE\EDVLVSRLQWV
FRPSDUHGWRDWDUJHWRIEDVLVSRLQWVLQFRPSDUHGWRLQ9ROXPHJUHZLQWKH'HYHORSLQJDQG(PHUJLQJVHJPHQWV
EXWQRWLQWKH(VWDEOLVKHGVHJPHQW7UDQVDFWLRQVJUHZIDVWHUWKDQYROXPH(PSOR\HHHQJDJHPHQWVXUYH\UHVXOWVVKRZHGWKDWOHYHOVZHUH
PDLQWDLQHGFRPSDUHGWRLQGHSHQGHQWO\SURYLGHGQRUPVIRUKLJKSHUIRUPLQJFRPSDQLHV7KH&RPSDQ\PDLQWDLQHG:RUOGDQG(XURSHDQ
beverage industry leadership on the Dow Jones Sustainability Indices. On the basis of this individual performance, the Committee decided
WKDWWKHUHVKRXOGEHDSD\RXWRIRIEDVHVDODU\IRUWKH&KLHI([HFXWLYH2FHUHTXLYDOHQWWRRIPD[LPXPRSSRUWXQLW\IRUWKH
individual performance element.
7KHEXVLQHVVQDQFLDODQGLQGLYLGXDODFKLHYHPHQWRXWOLQHGDERYHUHVXOWVLQDQDQQXDOFDVKERQXVSD\RXWRIRIEDVHVDODU\
WRbWKHb&KLHI([HFXWLYH2FHUbHTXLYDOHQWWRDSSUR[RIPD[LPXP0,3RSSRUWXQLW\

COC016_.indb 101 3/16/17 2:36 PM

 Coca-Cola HBC
102 2016 Integrated Annual Report

Directors Remuneration Report continued

Employee Stock Option Plan (ESOP) outcomes 2016

7KH5HPXQHUDWLRQ&RPPLWWHHZLOOQRORQJHUPDNHDZDUGVXQGHUWKLVSODQ8QGHUWKHJUDQWVPDGHLQ-XQH'HFHPEHUDQG
'HFHPEHUDWRWDORIVKDUHRSWLRQVYHVWHGWKLV\HDU:HKDYHUHHFWHGWKHYDOXHRIVWRFNRSWLRQDZDUGVWKDWYHVWHGGXULQJ
2016, respectively, being the number of options multiplied by (market price at vest exercise price at grant).

Performance share plan (PSP) awards 2016

Since the discontinuation of the ESOP in late 2015, the PSP is now the primary long-term incentive vehicle. In March 2016 the Chief Executive
2FHUZDVDZDUGHGVKDUHVXQGHUWKH363UHSUHVHQWLQJRIEDVHVDODU\DWGDWHRIJUDQW7KHVHVKDUHVDUHVXEMHFWWRDWKUHH
\HDUSHUIRUPDQFHSHULRGDOLJQHGWRWKH&RPSDQ\VQDQFLDO\HDUZLWKSHUIRUPDQFHPHDVXUHGWRWKHHQGRIQDQFLDO\HDUDQGYHVWLQJ
anticipated in March 2019.
7KHIROORZLQJWDEOHVHWVRXWWKHGHWDLOVRIWKHDZDUGPDGHWRWKH&KLHI([HFXWLYH2FHUXQGHUWKH363IRU
Type of award made 159,876 performance shares have been awarded under the PSP.
6KDUHVbYHVWDIWHUWKUHH\HDUVLQ0DUFKVXEMHFWWRWKHDFKLHYHPHQW
of performance conditions. The above award includes one grant in 2016.
Share price e
Date of grant 16 March 2016
Performance period 1 January 2016 to 31 December 2018
Face value of the award 
(The maximum number of shares that would vest if all
performance measures and targets are met, multiplied
E\bWKHbVKDUHSULFHDWWKHGDWHRIJUDQW
Face value of the award as a % of annual base salary 330%
Percentage that would be distributed if threshold performance 25% of maximum award
was achieved in both PSP key performance indicators
Percentage that would be distributed if threshold performance 12.5% of maximum award
was achieved only in one PSP key performance indicator
1RWH7KHWDEOHDERYHVSHFLHVWKHQXPEHURIVKDUHVDZDUGHGXQGHUWKH3637KHSURSRUWLRQRIWKHDZDUGVWKDWZLOOYHVWLVGHSHQGHQWXSRQWKHDFKLHYHPHQW
RIbSHUIRUPDQFHFRQGLWLRQVDQGWKHDFWXDOYDOXHGLVWULEXWHGPD\EHQLO7KHYHVWLQJRXWFRPHVZLOOEHGLVFORVHGLQWKHUHSRUW
The key business indicators are strategically relevant to business performance and provide line of sight to participants.
Similar to the award made in December 2015, the 2016 award is subject to comparable earnings per share (EPS) and return on invested capital
(ROIC), as outlined below.
Threshold Maximum
Vesting Vesting
Measure Description Weighting Target (% of max) Target (% of max)
Comparable EPS &DOFXODWHGE\GLYLGLQJWKHFRPSDUDEOHQHWSURWDWWULEXWDEOH 50% 1.08 25% 1.31 100%
WRbWKHRZQHUVRIWKHSDUHQWE\WKHZHLJKWHGDYHUDJHQXPEHU
RIbRXWVWDQGLQJVKDUHVGXULQJWKHSHULRG
Return on invested ROIC is the percentage return that a company makes over 50% 10.1% 25% 12.1% 100%
capital (ROIC) LWVbLQYHVWHGFDSLWDO0RUHVSHFLFDOO\ZHbGHQH52,&DVWKH
SHUFHQWDJHRIQHWRSHUDWLQJSURWDIWHUWD[GLYLGHGE\WKH
capital employed. Capital employed is calculated as the average
RIbQHWbERUURZLQJVDQGVKDUHKROGHUVHTXLW\WKURXJKbWKH\HDU

The vesting schedule for PSP performance conditions is not a straight line between the threshold and maximum performance levels.
7KHb5HPXQHUDWLRQ&RPPLWWHHFRQVLGHUVWKDWLWLVDSSURSULDWHWRSODFHJUHDWHUHPSKDVLVRQDFKLHYLQJWKHWDUJHWSHUIRUPDQFHOHYHOWKDQWKH
RXWSHUIRUPDQFHRIbWKLVOHYHO

Dilution Limit
8VDJHRIVKDUHVXQGHUDOOVKDUHSODQVDQGH[HFXWLYHVKDUHSODQVDGKHUHWRWKHGLOXWLRQOLPLWVVHWE\WKH,QYHVWPHQW$VVRFLDWLRQ3ULQFLSOHVRI
Remuneration (10% for all share plans and 5% for all executive share plans).

COC016_.indb 102 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 103

Strategic Report
Implementation of policy in 2017
For 2017, we will continue to apply our approved remuneration policy outlined on pages 92 to 98 as described above.

Base salary and fees

7KH&KLHI([HFXWLYH2FHUVEDVHVDODU\ZLOOEHUHYLHZHGLQ0DUFKDWWKHVDPHWLPHDVWKDWRIWKH2SHUDWLQJ&RPPLWWHHPHPEHUVDQG
WKHJHQHUDOPDQDJHUV$Q\EDVHVDODU\LQFUHDVHZLOOEHHHFWLYH0D\DQGLVDQWLFLSDWHGWREHEURDGO\LQOLQHZLWKWKHLQFUHDVHSURYLGHG
to other employees.

Corporate Governance
Fee levels for the Chairman and other non-Executive Directors were reviewed in 2016 and changes were made as outlined on page 98.
7KHbIHHOHYHOVIRUZLOOEHFRQVLVWHQWZLWKWKRVHRXWOLQHGLQWKLVUHSRUW

Management Incentive Plan (MIP)

The target annual bonus awards for 2017 will be in line with awards in 2016. The Remuneration Committee has set the 2017 performance
PHDVXUHVDOLJQHGWRRXU.3,V7KHSHUIRUPDQFHPHDVXUHVDUHVXPPDULVHGEHORZ
Weighting at maximum opportunity levels
Performance measure (% of base salary)
Business measures 120%
Annual sales volume.,QFHQWLYLVHVVXVWDLQDEOHJURZWKb7:&'WRWDOZRUNLQJFDSLWDOGD\VDFWVDVD
TXDOLHUIRUYROXPHSD\RXWLHLI7:&'DFKLHYHPHQWLVEHORZWKUHVKROGWKHUHLVQRYROXPHSD\RXW 30%

Financial Statements
Net sales revenue (NSR).b,QFHQWLYLVHVWKH*URXSVUHYHQXHJURZWKREMHFWLYHV 30%
Comparable earnings before interest and tax (comparable EBIT).'HQHGDVFRPSDUDEOHRSHUDWLQJ
SURWWKLVNH\SHUIRUPDQFHLQGLFDWRULQFHQWLYLVHVSURWDEOHJURZWK 30%
Operating expenditures (OpEx) excluding DME as a percentage of NSR. This key performance
LQGLFDWRUZKLFKH[FOXGHVGLUHFWPDUNHWLQJH[SHQVHV'0(LQFHQWLYLVHVHHFWLYHFRVWbPDQDJHPHQWDQG
competitiveness. 30%
Individual measures 10%

The Remuneration Committee is unable to provide the 2017 bonus award performance targets on a forward-looking basis as they are
deemed commercially sensitive. However, the targets will be disclosed in next years report once the actual performance against these targets
has been realised.

Swiss Statutory Reporting

Performance share plan (PSP)
The levels of PSP awards for 2017 are anticipated to be in line with those awarded in 2016. The performance measures will be consistent with
those detailed for the 2016 award outlined in this report. The Remuneration Committee expects to recommend an award of 330% of base
VDODU\WRWKH&KLHI([HFXWLYH2FHULQ0DUFKZLWKSHUIRUPDQFHUXQQLQJWRWKHHQGRI'HFHPEHUDQGDQ\YHVWLQJRFFXUULQJLQ
March 2020.

&KDQJHVWR&KLHI([HFXWLYH2FHUDQGHPSOR\HHSD\
7KHWDEOHEHORZVHWVRXWWKHSHUFHQWDJHFKDQJHLQEDVHVDODU\WD[DEOHEHQHWVDQGDQQXDOERQXVIRUWKH&KLHI([HFXWLYH2FHUDQGWKH
average pay for Swiss-based employees. We have chosen to make a comparison with employees in Switzerland as this is the market in which
RXU&KLHI([HFXWLYH2FHULVEDVHG0,3SD\RXWVIRUWKH6ZLVVZRUNIRUFHDUHSULPDULO\EDVHGRQ6ZLVVEXVLQHVVXQLWUHVXOWV
Annual base salary %HQHWV Annual bonus
Supplementary Information

&KLHI([HFXWLYH2FHUFKDQJHIURPWR +3.5% -46.8% -25%

Average employee % change for the Swiss workforce from 2015 to 2016 +1.7% +25.9% -7%

7KHVDODU\LQFUHDVHUDWHLVEURDGO\LQOLQHZLWKWKHVDODU\LQFUHDVHIRU6ZLVVEDVHGHPSOR\HHV$VQRWHGLQWKHFDVKDQGQRQFDVKEHQHWV
VHFWLRQRQSDJHWKHbGHFUHDVHLQEHQHWLVUHODWHGWRHHFWLYHWD[UDWHFKDQJHV

COC016_.indb 103 3/16/17 2:36 PM

 Coca-Cola HBC
104 2016 Integrated Annual Report

Directors Remuneration Report continued

&KLHI([HFXWLYH2FHUSD\DQGSHUIRUPDQFHFRPSDULVRQ
The graph below shows the total shareholder return (TSR) of the Company compared with the FTSE 100 index over an eight-year period to
31 December 2016. The Committee believes that the FTSE 100 Index is the most appropriate index to compare historic performance due to
the size of the Company and our listing location.

Total shareholder return versus FTSE 100

250

200

150

100

50
Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16
FTSE 100 CCH

2009 2010 2011 2012 2013 2014 2015 2016

Doros Doros Doros Dimitris Dimitris Dimitris Dimitris Dimitris Dimitris
Constantinou Constantinou Constantinou Lois Lois Lois Lois Lois Lois
Total remuneration single
JXUHV 2,887 3,752 4,708 711 1,524 1,928 1,918 3,012 2,923
MIP (% of maximum) 63% 65% 9% 24% 68% 49% 45% 75% 55%
2Q-XO\WKHIRUPHU&KLHI([HFXWLYH2FHURIWKH*URXSUHWLUHGIURPVHUYLFHDQG0U/RLVVXFFHHGHGKLP7KHDPRXQWVIRULQFOXGHWKHUHPXQHUDWLRQRIWKH
IRUPHU&KLHI([HFXWLYH2FHUXSWRWKHUHWLUHPHQWGDWHDQGWKHUHPXQHUDWLRQRI0U/RLVIRUWKHUHPDLQGHURIWKH\HDU)RUWKHUHPXQHUDWLRQRIWKHIRUPHU&KLHI
([HFXWLYH2FHULQFOXGHVWHUPLQDWLRQEHQHWVGXHWRUHWLUHPHQW
As the Company listed on the London Stock Exchange in April 2013, the amounts included in respect of the period before that date relate to the remuneration the Chief
([HFXWLYH2FHUUHFHLYHGLQKLVFDSDFLW\DV&KLHI([HFXWLYH2FHURI&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\6$

Relative importance of spend on pay

The graphic below presents the year-on-year change in total expenditure for all employees across the Group and distributions made to
shareholders in the form of dividend share buy-backs and/or capital returns.

Relative importance of spend on payP

2016 984.0 146.1

2015 1,069.8 132.4

Total employee costs Distribution to shareholders

&RPSDUHGWRWKHSULRU\HDUWKHWRWDOVWDFRVWVKDYHGHFUHDVHGE\ZKLOHWKHGLYLGHQGVGLVWULEXWHGWRVKDUHKROGHUVKDYHLQFUHDVHGE\

COC016_.indb 104 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 105

Strategic Report
Shareholder voting outcomes
The table below sets out the result of the vote on the remuneration-related resolution at the Annual General Meeting held in June 2016:
Voting rights
Resolution Votes for Votes against Abstentions Total votes cast represented
$GYLVRU\YRWHRQWKH8.5HPXQHUDWLRQ5HSRUW 236,914,616 18,941,964 183,352 256,039,932 70.78%
92.53% 7.40% 0.07%
Advisory vote on the Swiss Remuneration Report 236,911,005 18,945,575 183,352 256,039,932 70.78%

Corporate Governance
92.53% 7.40% 0.07%
Advisory vote on the remuneration policy 249,613,374 6,316,658 109,900 256,039,932 70.78%
97.49% 2.47% 0.04%
Approval of the maximum aggregate amount 255,053,386 876,791 109,755 255,930,177 70.78%
RIbUHPXQHUDWLRQIRUWKH%RDUGXQWLOWKHQH[Wb$QQXDO
General Meeting 99.66% 0.34% 0.0%
Approval of the maximum aggregate amount 254,456,899 1,085,639 497,394 255,542,538 70.78%
RIbUHPXQHUDWLRQIRUWKH2SHUDWLQJ&RPPLWWHHIRUWKH
QH[WQDQFLDO\HDU 99.58% 0.42% 0.0%

The Committee was pleased that shareholders supported our remuneration-related resolutions so strongly. We value our ongoing dialogue

Financial Statements
with shareholders and welcome any views on this report.

Payments to past Directors

1RFRPSHQVDWLRQIRUORVVRIRFHZDVSDLGWRDQ\'LUHFWRU:KHQ6LU0LFKDHO/OHZHOO\Q6PLWKDQG1LJHO0DFGRQDOGUHWLUHGDV'LUHFWRUVLQ
June 2016, short-term contractual arrangements were agreed with them under which they agreed to provide advisory services and support
ZLWKUHVSHFWWRWKHFRPPLWWHHVRIWKH%RDUGWKDWHDFKFKDLUHGb3D\PHQWXQGHUVXFKDUUDQJHPHQWZDVEDVHGRQWKHUHPXQHUDWLRQRID
normal non-Executive Board committee member rather than on their previous positions as Chairmen of such Committees.

Payments to appointed Directors

Mr. Reto Francioni, Mr. Ahmet C. Bozer, Mr. William W. (Bill) Douglas III, and Mr. Robert Ryan Rudolph joined in 2016, however as per the
recruitment policy for non-Executive Directors, new non-Executive Directors are not compensated for any forfeited share awards or other
incentives related to previous employment. Non-Executive Directors do not receive any form of variable compensation, nor any other

Swiss Statutory Reporting

EHQHWVLQFDVKRULQNLQG1R([HFXWLYH'LUHFWRUVZHUHDSSRLQWHGLQKHQFHQRSD\PHQWVZHUHPDGH

Termination payments made during the year

No terminations were made during the year.

2XWVLGHDSSRLQWPHQWVIRUWKH&KLHI([HFXWLYH2FHU
Mr. Lois serves as a member of the Board of Directors and Vice President of the Executive Committee of 81(6'$ and is also a member of
the Board of Directors of the Swiss-American Chamber of Commerce.

7RWDO'LUHFWRUVDQG2SHUDWLQJ&RPPLWWHHPHPEHUVUHPXQHUDWLRQ
7KHWDEOHEHORZRXWOLQHVWKHDJJUHJDWHGWRWDOUHPXQHUDWLRQJXUHVIRU'LUHFWRUVDQG2SHUDWLQJ&RPPLWWHHPHPEHUVLQWKH\HDU
Supplementary Information

2016 2015
( million) PLOOLRQ
Total remuneration paid to or accrued for Directors, the Operating Committee and the
&KLHI([HFXWLYH2FHU 24.4 18.2
6DODULHVDQGRWKHUVKRUWWHUPEHQHWV 18.7 12.3
Amount accrued for stock option and performance share awards 4.9 5.1
3HQVLRQDQGSRVWHPSOR\PHQWEHQHWVIRU'LUHFWRUVWKH2SHUDWLQJ&RPPLWWHHDQGbWKH
&KLHI([HFXWLYH2FHU 0.8 0.8

Credits and loans granted to governing bodies

In 2016, no credits or loans were granted to active or former members of the Companys Board, members of the Operating Committee or to
any related persons.

COC016_.indb 105 3/16/17 2:36 PM

 Coca-Cola HBC
106 2016 Integrated Annual Report

Directors Remuneration Report continued

Share ownership
The table below summarises the total shareholding as of 31 December 2016, including any outstanding shares awarded through our incentive
SODQVIRUWKH&KLHI([HFXWLYH2FHUDQGRWKHU'LUHFWRUV
With performance measures Without performance measures
PSP ESOP ESPP
8QYHVWHG Number of
Performance and Number outstanding Current
shares VXEMHFWbWR RIbVWRFN Vesting at shares held1 shareholding Shareholding
Share granted in performance Vested but options Fully the end as at as % of base guideline
Name interests year 2016 conditions unexercised outstanding vested RIb 31-Dec-16 salary2 met2
Dimitris Lois Yes 159,876 298,352 0 1,700,000 1,580,000 120,000 49,142 105.6% No
Anastassis G. David3
Reto Francioni
Ahmet C. Bozer
George A. David4
Olusola (Sola) David-
Borha
William W. (Bill)
Douglas III5
Irial Finan6
Antonio DAmato
Reto Francioni
Sir Michael Llewellyn-
Smith7
Nigel Macdonald8
Anastasios I.
Leventis9
Christo Leventis10
Jos Octavio Reyes
Alexandra
Papalexopoulou
Robert Ryan Rudolph
John P. Sechi
1. The number of shares held by Mr. Lois includes the amount of purchased and vested shares held under the ESPP on 31 December 2016 and 1,000 shares held
E\b0Ub/RLVVVSRXVH2XWRIWKHVKDUHVWKDWWKH&KLHI([HFXWLYH2FHUKHOGDVRI'HFHPEHUVKDUHVKDYHQRW\HWYHVWHG
2. 7KHVKDUHKROGLQJUHTXLUHPHQWZDVLQWURGXFHGIURPWKHGDWHRIWKH363DZDUG'HFHPEHU$VVXFKWKH&KLHI([HFXWLYH2FHUKDVDSHULRGRIYH\HDUV
from this date to December 2020 to build up a 200% of base salary shareholding.
3. 7KHbLQIDQWFKLOGRI0U$QDVWDVVLV'DYLGEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RIWKH
ODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK7UXDG9HUZDOWXQJV$*LVWKH7UXVWHHKDVDQLQGLUHFWLQWHUHVWZLWKUHVSHFWWRWKHVKDUHVKHOGE\.DU7HVV+ROGLQJ
6$7KHLQIDQWFKLOGRI0U$QDVWDVVLV'DYLGEHLQJDEHQHFLDU\RIDIXUWKHUSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKH
family of the late Anastasios George Leventis, of which Selene Treuhand AG is the Trustee, has a further indirect interest in respect of 823,008 shares held by Selene
7UHXKDQG$*0U$QDVWDVVLV'DYLGLVFRQQHFWHGZLWKKLVLQIDQWFKLOGIRUWKHSXUSRVHVRIUXOHRIWKH'LVFORVXUH*XLGDQFHDQG7UDQVSDUHQF\5XOHVRIWKH8.)LQDQFLDO
Conduct Authority.
4. Mr. George A. David retired from the Board and the Social Responsibility Committee on 21 June 2016.
5. Mr. William W. (Bill) Douglas owns 10,000 Company shares.
6. Mr. Irial Finan retired from the Board on 21 June 2016.
7. Sir Michael Llewellyn-Smith retired from the Board, the Remuneration Committee, the Nomination Committee and the Social Responsibility Committee on
21 June 2016. Sir Michael Llewellyn-Smith owns 545 Company shares.
8. Mr. Nigel Macdonald retired from the Board and the Audit and Risk Committee on 21 June 2016. Mr. Nigel Macdonald owns 1,700 Company shares.
9. 7KHLQIDQWFKLOGRI0U$QDVWDVLRV,/HYHQWLVEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RI
WKHODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK7UXDG9HUZDOWXQJV$*LVWKH7UXVWHHKDVDQLQGLUHFWLQWHUHVWLQUHVSHFWRIWKHVKDUHVKHOGE\.DU7HVV+ROGLQJ
6$7KHLQIDQWFKLOGRI0U$QDVWDVLRV,/HYHQWLVEHLQJDEHQHFLDU\RIDIXUWKHUSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUV
of the family of the late Anastasios George Leventis, of which Selene Treuhand AG is the Trustee, has a further indirect interest in respect of 386,879 shares held by
6HOHQH7UHXKDQG$*0U$QDVWDVLRV,/HYHQWLVLVFRQQHFWHGZLWKKLVLQIDQWFKLOGIRUWKHSXUSRVHVRIUXOHRIWKH'LVFORVXUH*XLGDQFHDQG7UDQVSDUHQF\5XOHVRIWKH8.
)LQDQFLDO&RQGXFW$XWKRULW\%\YLUWXHRIKLPVHOIEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RI
the late Christodoulos Papaneokleus Leventis, of which Mervail Company (PTC) Limited is the trustee, Mr. Anastasios I. Leventis has an indirect interest with respect to
623,664 shares held by Carlcan Holding Limited.
10. 7KHLQIDQWFKLOGUHQRI0U&KULVWR/HYHQWLVEHLQJEHQHFLDULHVRIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RIWKH
ODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK7UXDG9HUZDOWXQJV$*LVWKH7UXVWHHKDYHLQGLUHFWLQWHUHVWVZLWKUHVSHFWWRWKHVKDUHVKHOGE\.DU7HVV+ROGLQJ
6$7KHLQIDQWFKLOGUHQRI0U&KULVWR/HYHQWLVEHLQJEHQHFLDULHVRIDIXUWKHUSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKH
family of the late Anastasios George Leventis, of which Selene Treuhand AG is the Trustee, have further indirect interests in respect of 498,545 shares held by Selene
7UHXKDQG$*0U&KULVWR/HYHQWLVLVFRQQHFWHGZLWKKLVLQIDQWFKLOGUHQIRUWKHSXUSRVHVRIUXOHRIWKH'LVFORVXUH*XLGDQFHDQG7UDQVSDUHQF\5XOHVRIWKH8.)LQDQFLDO
&RQGXFW$XWKRULW\%\YLUWXHRIKLPVHOIEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RIWKHODWH
Christodoulos Papaneokleus Leventis, of which Mervail Company (PTC) Limited is the Trustee, Mr. Christo Leventis has an indirect interest with respect to the 757,307
shares held by Carlcan Holding Limited.
No performance shares vested to Dimitris Lois and he did not exercise any share options in 2016.

COC016_.indb 106 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

6WDWHPHQWRI'LUHFWRUV5HVSRQVLELOLWLHV

Strategic Report
The Directors, whose names and functions are set out on pages 60 H7KHDFWLYLWLHVRIWKH*URXSWRJHWKHUZLWKWKHIDFWRUVOLNHO\WR
WRFRQUPWRWKHEHVWRIWKHLUNQRZOHGJHWKDW DHFWLWVIXWXUHGHYHORSPHQWSHUIRUPDQFHQDQFLDOSRVLWLRQFDVK
RZVOLTXLGLW\SRVLWLRQDQGERUURZLQJIDFLOLWLHVDUHGHVFULEHGLQWKH
D7KH$QQXDO5HSRUWWDNHQDVDZKROHLVIDLUEDODQFHGDQG
6WUDWHJLF5HSRUWSDJHVWR,QbDGGLWLRQ1RWHV)LQDQFLDOULVN
XQGHUVWDQGDEOHDQGSURYLGHVWKHLQIRUPDWLRQQHFHVVDU\IRU
PDQDJHPHQWDQGQDQFLDOLQVWUXPHQWV1HWGHEW(TXLW\
VKDUHKROGHUVWRDVVHVVWKH*URXSVSRVLWLRQDQGSHUIRUPDQFH
LQFOXGHWKH&RPSDQ\VREMHFWLYHVSROLFLHVDQGSURFHVVHVIRU
EXVLQHVVPRGHODQGVWUDWHJ\
PDQDJLQJLWVFDSLWDOLWVQDQFLDOULVNPDQDJHPHQWREMHFWLYHVGHWDLOV
E7KHFRQVROLGDWHGQDQFLDOVWDWHPHQWVZKLFKKDYHEHHQSUHSDUHG
LQDFFRUGDQFHZLWK,QWHUQDWLRQDO)LQDQFLDO5HSRUWLQJ6WDQGDUGVDV
LVVXHGE\WKH,$6%JLYHDWUXHDQGIDLUYLHZRIWKHDVVHWVOLDELOLWLHV
QDQFLDOSRVLWLRQDQGSURWRUORVVRIWKH&RPSDQ\DQGWKH
XQGHUWDNLQJVLQFOXGHGLQWKHFRQVROLGDWLRQRIWKH*URXSWDNHQ
DVbDZKROH
RILWVQDQFLDOLQVWUXPHQWVDQGKHGJLQJDFWLYLWLHVDQGLWVH[SRVXUHV
Corporate Governance
WRFUHGLWULVNDQGOLTXLGLW\ULVN7KH*URXSKDVFRQVLGHUDEOHQDQFLDO
UHVRXUFHVWRJHWKHUZLWKORQJWHUPFRQWUDFWVZLWKDQXPEHURI
FXVWRPHUVDQGVXSSOLHUVDFURVVGLHUHQWFRXQWULHV7KH'LUHFWRUV
KDYHDOVRDVVHVVHGWKHSULQFLSDOULVNVDQGWKHRWKHUPDWWHUV
GLVFXVVHGLQFRQQHFWLRQZLWKWKH9LDELOLW\6WDWHPHQWRQSDJH
F7KH$QQXDO5HSRUWLQFOXGHVDIDLUUHYLHZRIWKHGHYHORSPHQW
DQGSHUIRUPDQFHRIWKHEXVLQHVVDQGWKHSRVLWLRQRIWKH&RPSDQ\
DQGWKHXQGHUWDNLQJVLQFOXGHGLQWKHFRQVROLGDWHG&RFD&ROD+%&
*URXSWDNHQDVDZKROHWRJHWKHUZLWKDGHVFULSWLRQRIWKHSULQFLSDO
ULVNVDQGXQFHUWDLQWLHVWKDWWKH\IDFH
The Directors considered it appropriate to adopt the going concern
EDVLVRIDFFRXQWLQJLQSUHSDULQJWKHDQQXDOQDQFLDOVWDWHPHQWVDQG
KDYHQRWLGHQWLHGDQ\PDWHULDOXQFHUWDLQWLHVWRWKH*URXSVDELOLW\WR
FRQWLQXHWRGRVRRYHUDSHULRGRIDWOHDVWPRQWKVIURPWKHGDWH
RIDSSURYDORIWKHVHQDQFLDOVWDWHPHQWV

G7KH'LUHFWRUVDUHUHVSRQVLEOHIRUSUHSDULQJWKH$QQXDO5HSRUW %\RUGHURIWKH%RDUG

Financial Statements
LQFOXGLQJWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDQGWKH&RUSRUDWH
*RYHUQDQFH5HSRUWLQFOXGLQJWKH5HPXQHUDWLRQ5HSRUWDQGWKH
6WUDWHJLF5HSRUWLQDFFRUGDQFHZLWKDSSOLFDEOHODZbDQGUHJXODWLRQV

Dimitris Lois
&KLHI([HFXWLYH2FHU

Swiss Statutory Reporting

0DUFK

Disclosure of information required under Listing Rule 9.8.4R

)RUWKHSXUSRVHVRI/LVWLQJ5XOH&WKHLQIRUPDWLRQUHTXLUHGWREHGLVFORVHGE\SUHPLXPOLVWHGFRPSDQLHVLQWKH8QLWHG.LQJGRP
FDQbEHbORFDWHGDVVHWRXWEHORZ
/LVWLQJ5XOH ,QIRUPDWLRQWREHLQFOXGHG 5HIHUHQFHLQUHSRUW
 ,QWHUHVWFDSLWDOLVHGE\WKH*URXSDQGDQLQGLFDWLRQRIWKHDPRXQWDQGWUHDWPHQW 1RWDSSOLFDEOH
RIbDQ\DVVRFLDWHGWD[UHOLHI
 'HWDLOVRIDQ\XQDXGLWHGQDQFLDOLQIRUPDWLRQUHTXLUHGE\/5 1RWDSSOLFDEOH
 'HWDLOVRIDQ\ORQJWHUPLQFHQWLYHVFKHPHGHVFULEHGLQ/5 1RWDSSOLFDEOH
Supplementary Information

 'HWDLOVRIDQ\DUUDQJHPHQWXQGHUZKLFKD'LUHFWRUKDVZDLYHGDQ\HPROXPHQWV 3DJH

 'HWDLOVRIDQ\DUUDQJHPHQWXQGHUZKLFKD'LUHFWRUKDVDJUHHGWRZDLYH 1RWDSSOLFDEOH
IXWXUHbHPROXPHQWV
 'HWDLOVRIDQ\DOORWPHQWVRIVKDUHVE\WKH&RPSDQ\IRUFDVKQRWSUHYLRXVO\DXWKRULVHG 1RWDSSOLFDEOH
E\VKDUHKROGHUV
 'HWDLOVRIDQ\DOORWPHQWVRIVKDUHVIRUFDVKE\DPDMRUVXEVLGLDU\RIWKH&RPSDQ\ 1RWDSSOLFDEOH
 'HWDLOVRIWKHSDUWLFLSDWLRQE\WKH&RPSDQ\LQDQ\SODFLQJPDGHE\LWVSDUHQWFRPSDQ\ 1RWDSSOLFDEOH
 'HWDLOVRIDQ\FRQWUDFWVRIVLJQLFDQFHLQYROYLQJD'LUHFWRU 1RWDSSOLFDEOH
 'HWDLOVRIDQ\FRQWUDFWIRUWKHSURYLVLRQRIVHUYLFHVWRWKH&RPSDQ\ 1RWDSSOLFDEOH
E\bDbFRQWUROOLQJbVKDUHKROGHU
 'HWDLOVRIDQ\DUUDQJHPHQWXQGHUZKLFKDVKDUHKROGHUKDVZDLYHGRUDJUHHG 1RWDSSOLFDEOH
WRbZDLYHbDQ\GLYLGHQGV
 'HWDLOVRIDQ\DUUDQJHPHQWXQGHUZKLFKDVKDUHKROGHUKDVDJUHHGWRZDLYH 1RWDSSOLFDEOH
IXWXUHbGLYLGHQGV
 $JUHHPHQWVZLWKDFRQWUROOLQJVKDUHKROGHU 1RWDSSOLFDEOH

COC016_.indb 107 3/16/17 2:36 PM

 Coca-Cola HBC
108 2016 Integrated Annual Report

Financial Statements

Contents
Independent Auditors Report 109

Consolidated Financial Statements

Consolidated Income Statement 114
Consolidated Statement of Comprehensive Income 115
Consolidated Balance Sheet 116
Consolidated Statement of Changes in Equity 117
Consolidated Cash Flow Statement 119

Notes to the Consolidated Financial Statements

Basis of reporting
1. Description of business 120
2. Basis of preparation and consolidation 120
3. Foreign currency and translation 120
4. Accounting pronouncements 121
5. Critical accounting estimates and judgements 122
Results for the year
6. Segmental analysis 122
7. Net sales revenue 126
8. Operating expenses 126
9. Finance costs, net 128
10. Taxation 128
11. Earnings per share 131
12. Components of other comprehensive income 131
Operating assets and liabilities
13. Intangible assets 132
14. Property, plant and equipment 135
15. Interests in other entities 138
16. Inventories 141
17. Trade, other receivables and assets 142
$VVHWVFODVVLHGDVKHOGIRUVDOH 145
19. Trade and other payables 145
3URYLVLRQVDQGHPSOR\HHEHQHWV 146
2VHWWLQJQDQFLDODVVHWVDQGOLDELOLWLHV 151
22. Business combinations 152
Risk management and capital structure
)LQDQFLDOULVNPDQDJHPHQWDQGQDQFLDOLQVWUXPHQWV 153
24. Net debt 164
25. Equity 168
2WKHUQDQFLDOLQIRUPDWLRQ
26. Related party transactions 170
27. Share-based payments 172
28. Contingencies 175
29. Commitments 176
30. Post balance sheet events 176

COC016_.indb 108 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 109

Independent Auditors Report

Strategic Report
Independent auditors report to Coca-Cola HBC AG
5HSRUWRQWKHDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
Our opinion
,QRXURSLQLRQ&RFD&ROD+%&$*VWKH&RPSDQ\FRQVROLGDWHGQDQFLDOVWDWHPHQWVJLYHDWUXHDQGIDLUYLHZRIWKHFRQVROLGDWHGQDQFLDO
SRVLWLRQRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVWRJHWKHUWKH*URXSDVDW'HFHPEHUDQGRILWVFRQVROLGDWHGQDQFLDOSHUIRUPDQFH

Corporate Governance
DQGLWVFRQVROLGDWHGFDVKRZVIRUWKH\HDUWKHQHQGHGLQDFFRUGDQFHZLWK,QWHUQDWLRQDO)LQDQFLDO5HSRUWLQJ6WDQGDUGV,)56VDVLVVXHGE\
WKHb,QWHUQDWLRQDO$FFRXQWLQJ6WDQGDUGV%RDUG,$6%

What we have audited

&RFD&ROD+%&$*VFRQVROLGDWHGQDQFLDOVWDWHPHQWVLQFOXGHGZLWKLQWKH,QWHJUDWHG$QQXDO5HSRUWFRPSULVH
the consolidated balance sheet as at 31 December 2016;
the consolidated income statement for the year then ended;
the consolidated statement of comprehensive income for the year then ended;
the consolidated statement of changes in equity for the year then ended;
WKHFRQVROLGDWHGFDVKRZVWDWHPHQWIRUWKH\HDUWKHQHQGHGDQG

Financial Statements
WKHQRWHVWRWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVZKLFKLQFOXGHDVXPPDU\RIVLJQLFDQWDFFRXQWLQJSROLFLHV

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
GHVFULEHGLQWKH$XGLWRUVUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVVHFWLRQRIRXUUHSRUW
:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXURSLQLRQ

Independence
We are independent of the Group in accordance with applicable laws and regulations regarding independence relevant to our audit of the
FRQVROLGDWHGQDQFLDOVWDWHPHQWVLQFOXGLQJWKH,QWHUQDWLRQDO(WKLFV6WDQGDUGV%RDUGIRU$FFRXQWDQWV&RGHRI(WKLFVIRU3URIHVVLRQDO
$FFRXQWDQWV,(6%$&RGH:HKDYHDOVRIXOOOHGRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHVHUHTXLUHPHQWV

Swiss Statutory Reporting

Our audit approach
Overview
2YHUDOOJURXSPDWHULDOLW\PLOOLRQZKLFKUHSUHVHQWVRISURWEHIRUHWD[
:HDXGLWHGWKHFRPSOHWHQDQFLDOLQIRUPDWLRQRIWKH&RPSDQ\DQGRIVXEVLGLDU\XQGHUWDNLQJVLQ
14 countries.
Materiality 7DNHQWRJHWKHUWKHXQGHUWDNLQJVRIZKLFKDQDXGLWRIWKHLUFRPSOHWHQDQFLDOLQIRUPDWLRQZDV
SHUIRUPHGDFFRXQWHGIRURIFRQVROLGDWHGQHWVDOHVUHYHQXHRIFRQVROLGDWHGSURWEHIRUH
WD[DQGRIFRQVROLGDWHGWRWDODVVHWVRIWKH*URXS
:HDOVRFRQGXFWHGVSHFLFDXGLWSURFHGXUHVDQGDQDO\WLFDOUHYLHZSURFHGXUHVIRURWKHU*URXS
Supplementary Information

undertakings and functions.

Group
scoping .H\DXGLWPDWWHUVFRPSULVHG
*RRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVLPSDLUPHQWDVVHVVPHQW
Uncertain tax positions.
Provisions and contingent liabilities.
Key audit
matters

$VSDUWRIGHVLJQLQJRXUDXGLWZHGHWHUPLQHGPDWHULDOLW\DQGDVVHVVHGWKHULVNVRIPDWHULDOPLVVWDWHPHQWLQWKHFRQVROLGDWHGQDQFLDO
VWDWHPHQWV,QSDUWLFXODUZHORRNHGDWZKHUHWKH'LUHFWRUVPDGHVXEMHFWLYHMXGJHPHQWVIRUH[DPSOHLQUHVSHFWRIVLJQLFDQWDFFRXQWLQJ
estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also
addressed the risk of management override of internal controls, including among other matters consideration of whether there was
HYLGHQFHbRIELDVE\WKH'LUHFWRUVWKDWUHSUHVHQWHGDULVNRIPDWHULDOPLVVWDWHPHQWGXHWRIUDXG

COC016_.indb 109 3/16/17 2:36 PM

 Coca-Cola HBC
110 2016 Integrated Annual Report

Independent Auditors Report continued

Materiality
7KHVFRSHRIRXUDXGLWZDVLQXHQFHGE\RXUDSSOLFDWLRQRIPDWHULDOLW\$QDXGLWLVGHVLJQHGWRREWDLQUHDVRQDEOHDVVXUDQFHZKHWKHUWKH
QDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW0LVVWDWHPHQWVPD\DULVHGXHWRIUDXGRUHUURU7KH\DUHFRQVLGHUHGPDWHULDO
LILQGLYLGXDOO\RULQDJJUHJDWHWKH\FRXOGUHDVRQDEO\EHH[SHFWHGWRLQXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVWDNHQRQWKHEDVLVRIWKH
FRQVROLGDWHGQDQFLDOVWDWHPHQWV
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality
IRUbWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVDZKROHDVVHWRXWLQWKHWDEOHEHORZ7KHVHWRJHWKHUZLWKTXDOLWDWLYHFRQVLGHUDWLRQVKHOSHGXV
WRbGHWHUPLQHWKHVFRSHRIRXUDXGLWDQGWKHQDWXUHWLPLQJDQGH[WHQWRIRXUDXGLWSURFHGXUHVDQGWRHYDOXDWHWKHHHFWRIPLVVWDWHPHQWV
ERWKLQGLYLGXDOO\DQGLQDJJUHJDWHRQWKHQDQFLDOVWDWHPHQWVDVDZKROH
Overall group materiality
How we determined it
Rationale for the materiality
benchmark applied
PLOOLRQPLOOLRQ
RISURWEHIRUHWD[
:HFKRVHSURWEHIRUHWD[DVWKHEHQFKPDUNEHFDXVHLQRXUYLHZLWLVRQHRIWKHSULQFLSDOPHDVXUHV
FRQVLGHUHGE\XVHUVDQGLVDJHQHUDOO\DFFHSWHGEHQFKPDUN:HFKRVHZKLFKLVZLWKLQWKHUDQJH
RIbDFFHSWDEOHTXDQWLWDWLYHPDWHULDOLW\WKUHVKROGVLQJHQHUDOO\DFFHSWHGDXGLWLQJSUDFWLFH

:HDJUHHGZLWKWKH$XGLWDQG5LVN&RPPLWWHHWKDWZHZRXOGUHSRUWWRWKHPPLVVWDWHPHQWVLGHQWLHGGXULQJRXUDXGLWDERYHPLOOLRQ
DVbZHOODVPLVVWDWHPHQWVEHORZWKDWDPRXQWWKDWLQRXUYLHZZDUUDQWHGUHSRUWLQJIRUTXDOLWDWLYHUHDVRQV

Key audit matters

.H\DXGLWPDWWHUVDUHWKRVHPDWWHUVWKDWLQRXUSURIHVVLRQDOMXGJHPHQWZHUHRIPRVWVLJQLFDQFHLQRXUDXGLWRIWKHFRQVROLGDWHGQDQFLDO
VWDWHPHQWVRIWKHFXUUHQWSHULRG7KHVHPDWWHUVZHUHDGGUHVVHGLQWKHFRQWH[WRIRXUDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVD
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
*RRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVLPSDLUPHQW We evaluated the process by which management prepared the CGU
assessment value-in-use calculations and compared them to the latest budget
Refer to Note 13 for intangible assets including goodwill. approved by the Board of Directors. We assessed the quality of the
*RRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVDVDW budgeting process by comparing the prior year budget with actual
'HFHPEHUDPRXQWWRPLOOLRQDQG data. No material exceptions were noted from our evaluation.
PLOOLRQUHVSHFWLYHO\ Deploying our valuation specialists, we challenged managements
The above noted amounts have been allocated to individual DQDO\VLVDURXQGWKHNH\GULYHUVRIFDVKRZIRUHFDVWVLQFOXGLQJSULFH
cash-generating units (CGUs). The impairment assessment increases, short-term and long-term volume growth and the level
is performed at least annually and relies on the calculation of a of input costs by comparing them with either the Groups historical
value-in-use for each CGU. information or market data, as appropriate. We also evaluated the
appropriateness of other key assumptions including discount rates
This area was a key matter for our audit due to the size of goodwill and foreign exchange rates by comparing them to relevant market
DQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVDQGEHFDXVHWKHGHWHUPLQDWLRQ data. We found the assumptions to be consistent and in line with
RIZKHWKHUHOHPHQWVRIJRRGZLOODQGRILQGHQLWHOLYHGLQWDQJLEOH our expectations.
assets are impaired involves complex and subjective estimates and
judgements by management about the future results of the CGUs. We also performed sensitivity analyses on the key drivers of cash
These estimates and judgements include assumptions surrounding RZIRUHFDVWVIRUWKH&*8VZLWKVLJQLFDQWEDODQFHVRIJRRGZLOO
revenue growth rates, input costs, foreign exchange rates and DQGbLQGHQLWHOLYHGLQWDQJLEOHDVVHWVDVZHOODVIRU&*8VZLWK
discount rates. PDUJLQDOKHDGURRPLQFOXGLQJWKHJRRGZLOODQGLQGHQLWHOLYHG
LQWDQJLEOHDVVHWVKHOGE\0XOWRQ=$2&*8DQGWKH1LJHULD&*8
Furthermore, macroeconomic volatility, competitor activity and
UHJXODWRU\VFDOGHYHORSPHQWVFDQDGYHUVHO\DHFWHDFK&*8 As a result of our work, we found that the determination by
DQGSRWHQWLDOO\WKHFDUU\LQJDPRXQWRIJRRGZLOODQGLQGHQLWHOLYHG management that no impairment was required for goodwill and
intangible assets. LQGHQLWHOLYHGLQWDQJLEOHDVVHWVZDVVXSSRUWHGE\UHDVRQDEOH
DVVXPSWLRQV0DQDJHPHQWKDVIXUWKHUPRUHGLVFORVHGUHOHYDQW
No impairment charge was recorded in 2016. We note however, that sensitivity analyses in Note 13.
JRRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVKHOGE\0XOWRQ=$2
CGU and the Nigeria CGU remain sensitive to changes in the key
GULYHUVRIFDVKRZIRUHFDVWVJLYHQWKHPDFURHFRQRPLFYRODWLOLW\
LQb5XVVLDDQG1LJHULDUHVSHFWLYHO\

COC016_.indb 110 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 111

Key audit matter
Uncertain tax positions
Refer to Note 10 for taxation and Note 28 for contingencies.
The Group operates in a complex multinational tax environment
which gives rise to uncertain tax positions in relation to corporation
tax, transfer pricing and indirect taxes.
Strategic Report
How our audit addressed the key audit matter
In conjunction with our tax specialists, we evaluated managements
judgements in respect of estimates of tax exposures and
contingencies in order to assess the adequacy of the Groups
tax provisions.
In order to understand and evaluate managements judgements,
we considered the status of current tax authority audits and

Given the number of judgements involved in estimating the
provisions relating to uncertain tax positions and the complexities of
dealing with tax rules and regulations in numerous jurisdictions, this
was considered as a key audit matter.
Provisions and contingent liabilities
Refer to Note 20 for provisions and Note 28 for contingencies.
The Group faces a number of threatened and actual legal and
regulatory proceedings. The level of provisioning and/or the level
Corporate Governance
enquiries, the outcome of previous tax authority audits, judgemental
positions taken in tax returns and current year estimates and recent
developments in the tax environments in which the Group operates.
From the evidence obtained and in the context of the consolidated
QDQFLDOVWDWHPHQWVWDNHQDVDZKROHZHFRQVLGHUWKHSURYLVLRQV
in relation to uncertain tax positions as at 31 December 2016 to
be appropriate.
We evaluated the design and implementation of controls in respect
of litigation and regulatory procedures, and no material exceptions
were noted.
2XUSURFHGXUHVLQFOXGHGWKHIROORZLQJ

Financial Statements
of disclosure required involves a high level of judgement resulting
where relevant, reading external legal advice obtained
in provisions and contingent liabilities being considered as a key
by management;
audit matter.
discussing open matters with the Group general counsel;
meeting with local management and reading
subsequent correspondence;
assessing and challenging managements conclusions through
understanding precedents set in similar cases; and
circularising relevant third-party legal representatives and follow up
discussions, where appropriate, on certain material cases.
Based on the evidence obtained, whilst noting the inherent

Swiss Statutory Reporting

uncertainty with such legal and regulatory matters, we determined
the level of provisioning as at 31 December 2016 to be appropriate.
We assessed the appropriateness of the related disclosures in Note
28 and considered these to be reasonable.

How we tailored our group audit scope

:HWDLORUHGWKHVFRSHRIRXUDXGLWLQRUGHUWRSHUIRUPVXFLHQWZRUNWRHQDEOHXVWRSURYLGHDQRSLQLRQRQWKHFRQVROLGDWHGQDQFLDO
statements as a whole, taking into account the geographic structure of the Group, the accounting processes and controls, and the industry
LQbZKLFKWKH*URXSRSHUDWHV
The Group operates through its trading subsidiary undertakings in 28 countries, as set out on page 122 of the 2016 Integrated Annual
Supplementary Information

Report. The processing of the accounting entries for these entities is largely centralised in a shared services centre in Bulgaria, except for the
subsidiary undertakings in Russia, Ukraine, Belarus and Armenia, which process their accounting entries locally. The Group also operates a
centralised treasury function in the Netherlands and in Greece and a centralised procurement function in Austria. We considered the nature
of the work that needed to be performed on these entities and functions by us, as the group engagement team and by component auditors
IURPRWKHU3Z&QHWZRUNUPV:KHUHZRUNZDVSHUIRUPHGE\FRPSRQHQWDXGLWRUVZHGHWHUPLQHGWKHOHYHORILQYROYHPHQWZHQHHGHGWR
have in the audit work at those entities or functions to be able to conclude whether appropriate audit evidence had been obtained as a basis
IRURXURSLQLRQRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVDZKROH
%DVHGRQWKHQDQFLDOVLJQLFDQFHWRWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDQGLQOLJKWRIWKHNH\DXGLWPDWWHUVDVQRWHGDERYHZHLGHQWLHG
subsidiary undertakings in 14 countries (including the trading subsidiary undertakings in Russia, Nigeria and Italy) which in our view, required
DQDXGLWRIWKHLUFRPSOHWHQDQFLDOLQIRUPDWLRQ)XUWKHUPRUHWKH&RPSDQ\VFRPSOHWHQDQFLDOLQIRUPDWLRQZDVVXEMHFWWRDXGLW6SHFLF
audit procedures on certain balances and transactions were also performed on subsidiary undertakings in 3 countries, 1 joint venture and
the corporate service centres in Greece and Austria. In addition, audit procedures were performed with respect to the centralised treasury
function by the group engagement team and by the component audit team in Austria as regards to the centralised procurement function.
The group engagement team also performed analytical review and other procedures on balances and transactions of subsidiary undertakings
not covered by the procedures described above.

COC016_.indb 111 3/16/17 2:36 PM

 Coca-Cola HBC
112 2016 Integrated Annual Report

Independent Auditors Report continued

Our group engagement teams involvement with respect to audit work performed by component auditors included site visits (to Russia,
Nigeria, Italy, Switzerland, Romania, Bulgaria and Greece), conference calls with component audit teams, meetings with local management,
review of component auditor work papers, attendance at component audit clearance meetings, and other forms of interactions as considered
QHFHVVDU\GHSHQGLQJRQWKHVLJQLFDQFHRIWKHFRPSRQHQWDQGWKHH[WHQWRIDFFRXQWLQJDQGDXGLWLVVXHVDULVLQJ7KHJURXSHQJDJHPHQW
team was also responsible for planning, designing and overseeing the audit procedures performed at the shared services centre in Bulgaria.
7KH*URXSFRQVROLGDWLRQQDQFLDOVWDWHPHQWGLVFORVXUHVDQGDQXPEHURIDUHDVRIVLJQLFDQWMXGJHPHQWLQFOXGLQJJRRGZLOODQGLQWDQJLEOH
assets, material provisions and contingent liabilities, were audited by the group engagement team. We also performed work centrally on IT
general controls. We held a two-day audit planning workshop in Greece focusing on planning and risk assessment activities. This audit planning
ZRUNVKRSZDVDWWHQGHGE\WKHFRPSRQHQWWHDPVUHVSRQVLEOHIRUWKHVXEVLGLDULHVUHTXLULQJDQDXGLWRIWKHLUFRPSOHWHQDQFLDOLQIRUPDWLRQ
%DVHGRQWKHDERYHWKHXQGHUWDNLQJVRIZKLFKDQDXGLWRIWKHLUFRPSOHWHQDQFLDOLQIRUPDWLRQZDVSHUIRUPHGDFFRXQWHGIRURI
FRQVROLGDWHGQHWVDOHVUHYHQXHRIFRQVROLGDWHGSURWEHIRUHWD[DQGRIFRQVROLGDWHGWRWDODVVHWVRIWKH*URXS

Other information
The Directors are responsible for the other information. The other information comprises Coca-Cola HBC AGs 2016 Integrated Annual
5HSRUWEXWGRHVQRWLQFOXGHWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDQGRXUDXGLWRUVUHSRUWWKHUHRQZKLFKZHREWDLQHGSULRUWRWKHGDWH
RIbWKLVDXGLWRUVUHSRUW
2XURSLQLRQRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVGRHVQRWFRYHUWKHRWKHULQIRUPDWLRQDQGZHGRQRWH[SUHVVDQ\IRUPRIDVVXUDQFH
conclusion thereon.
,QFRQQHFWLRQZLWKRXUDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRXUUHVSRQVLELOLW\LVWRUHDGWKHRWKHULQIRUPDWLRQLGHQWLHGDERYHDQG
LQGRLQJVRFRQVLGHUZKHWKHUWKHRWKHULQIRUPDWLRQLVPDWHULDOO\LQFRQVLVWHQWZLWKWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRURXUNQRZOHGJH
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.

5HVSRQVLELOLWLHVRIWKH'LUHFWRUVIRUWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
As explained more fully in the Statement of Directors Responsibilities set out in the 2016 Integrated Annual Report on page 107, the Directors
DUHUHVSRQVLEOHIRUWKHSUHSDUDWLRQRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDQGIRUEHLQJVDWLVHGWKDWWKH\JLYHDWUXHDQGIDLUYLHZDQGIRU
VXFKLQWHUQDOFRQWURODVWKH'LUHFWRUVGHWHUPLQHLVQHFHVVDU\WRHQDEOHWKHSUHSDUDWLRQRIFRQVROLGDWHGQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURP
material misstatement, whether due to fraud or error.

$XGLWRUVUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURPPDWHULDO
misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
0LVVWDWHPHQWVFDQDULVHIURPIUDXGRUHUURUDQGDUHFRQVLGHUHGPDWHULDOLILQGLYLGXDOO\RULQWKHDJJUHJDWHWKH\FRXOGUHDVRQDEO\EHH[SHFWHG
WRLQXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVWDNHQRQWKHEDVLVRIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit.
:HDOVR
,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURUGHVLJQDQG
SHUIRUPDXGLWSURFHGXUHVUHVSRQVLYHWRWKRVHULVNVDQGREWDLQDXGLWHYLGHQFHWKDWLVVXFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXU
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
FLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHHFWLYHQHVVRIWKH*URXSVLQWHUQDOFRQWURO
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
the Directors.
Conclude on the appropriateness of the Directors use of the going concern basis of accounting and, based on the audit evidence obtained,
ZKHWKHUDPDWHULDOXQFHUWDLQW\H[LVWVUHODWHGWRHYHQWVRUFRQGLWLRQVWKDWPD\FDVWVLJQLFDQWGRXEWRQWKH*URXSVDELOLW\WRFRQWLQXHDV
a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related
GLVFORVXUHVLQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRULIVXFKGLVFORVXUHVDUHLQDGHTXDWHWRPRGLI\RXURSLQLRQ2XUFRQFOXVLRQVDUHEDVHG
on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Group to cease
to continue as a going concern.

COC016_.indb 112 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 113

Strategic Report
(YDOXDWHWKHRYHUDOOSUHVHQWDWLRQVWUXFWXUHDQGFRQWHQWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVLQFOXGLQJWKHGLVFORVXUHVDQGZKHWKHU
WKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVUHSUHVHQWWKHXQGHUO\LQJWUDQVDFWLRQVDQGHYHQWVLQDPDQQHUWKDWDFKLHYHVIDLUSUHVHQWDWLRQ
2EWDLQVXFLHQWDSSURSULDWHDXGLWHYLGHQFHUHJDUGLQJWKHQDQFLDOLQIRUPDWLRQRIWKHHQWLWLHVRUEXVLQHVVDFWLYLWLHVZLWKLQWKH*URXSWR
H[SUHVVDQRSLQLRQRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV:HDUHUHVSRQVLEOHIRUWKHGLUHFWLRQVXSHUYLVLRQDQGSHUIRUPDQFHRIWKH
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
VLJQLFDQWDXGLWQGLQJVLQFOXGLQJDQ\VLJQLFDQWGHFLHQFLHVLQLQWHUQDOFRQWUROWKDWZHLGHQWLI\GXULQJRXUDXGLW7KRVHFKDUJHGZLWK

Corporate Governance
JRYHUQDQFHDUHUHVSRQVLEOHIRURYHUVHHLQJWKH*URXSVQDQFLDOUHSRUWLQJSURFHVV
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
)URPWKHPDWWHUVFRPPXQLFDWHGZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHZHGHWHUPLQHWKRVHPDWWHUVWKDWZHUHRIPRVWVLJQLFDQFHLQWKH
DXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRIWKHFXUUHQWSHULRGDQGDUHWKHUHIRUHWKHNH\DXGLWPDWWHUV:HGHVFULEHWKHVHPDWWHUVLQRXU
auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
RXWZHLJKWKHSXEOLFLQWHUHVWEHQHWVRIVXFKFRPPXQLFDWLRQ
This report, including the opinion, has been prepared for and only for Coca-Cola HBC AG for the purpose of the Disclosure Guidance and

Financial Statements
Transparency Rules sourcebook and the Listing Rules of the Financial Conduct Authority and for no other purpose.

Report on other legal and regulatory requirements

Matters on which we are required to report by exception
Under the Listing Rules we are required to review the part of the Corporate Governance section relating to the Companys compliance with
bSURYLVLRQVRIWKH8.&RUSRUDWH*RYHUQDQFH&RGHWKH&RGH:HKDYHQRWKLQJWRUHSRUWKDYLQJSHUIRUPHGRXUUHYLHZ

Other matters
We have reviewed the statement on going concern, included in the Statement of Directors Responsibilities, in Coca-Cola HBC AGs 2016
Integrated Annual Report on page 107, as if the Company were a UK incorporated premium listed entity. We have nothing to report having
performed our review.

Swiss Statutory Reporting

As noted in the Statement of Directors Responsibilities, the Directors have concluded that it is appropriate to prepare the consolidated
QDQFLDOVWDWHPHQWVXVLQJWKHJRLQJFRQFHUQEDVLVRIDFFRXQWLQJ7KHJRLQJFRQFHUQEDVLVSUHVXPHVWKDWWKH*URXSKDVDGHTXDWHUHVRXUFHV
WRUHPDLQLQRSHUDWLRQDQGWKDWWKH'LUHFWRUVLQWHQGLWWRGRVRIRUDWOHDVWRQH\HDUIURPWKHGDWHWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVZHUH
signed. As part of our audit we have concluded that the Directors use of the going concern basis is appropriate.
However, because not all future events or conditions can be predicted, these statements are not a guarantee as to the Groups ability to
continue as a going concern.
We have also reviewed the Directors statement in relation to the longer-term viability of the Group, set out on page 59, of the
Coca-Cola HBC AGs 2016 Integrated Annual Report as if the Company were a UK incorporated premium listed entity. Our review was
substantially less in scope than an audit and only consisted of making inquiries and considering the Directors process supporting their
statement; checking that the statement is in alignment with the relevant provisions of the Code; and considering whether the statement is
Supplementary Information

consistent with the knowledge acquired by us in the course of performing our audit. We have nothing to report having performed our review.

Marios Psaltis
WKH&HUWLHG$XGLWRU5HJ1R
for and on behalf of PricewaterhouseCoopers S.A.
&HUWLHG$XGLWRUV5HJ1R
Athens, Greece
0DUFK

1RWHV
(a) The maintenance and integrity of the Coca-Cola HBC AG website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration
RIWKHVHPDWWHUVDQGDFFRUGLQJO\WKHDXGLWRUVDFFHSWQRUHVSRQVLELOLW\IRUDQ\FKDQJHVWKDWPD\KDYHRFFXUUHGWRWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVVLQFHWKH\ZHUH
initially presented on the website.
E/HJLVODWLRQLQ8.DQG6ZLW]HUODQGJRYHUQLQJWKHSUHSDUDWLRQDQGGLVVHPLQDWLRQRIFRQVROLGDWHGQDQFLDOVWDWHPHQWVPD\GLHUIURPOHJLVODWLRQLQRWKHUMXULVGLFWLRQV

COC016_.indb 113 3/16/17 2:36 PM

 Coca-Cola HBC
114 2016 Integrated Annual Report

Financial Statements

Consolidated Income Statement

Year ended 31 December
2016 2015
Note million PLOOLRQ
Net sales revenue 6,7 6,219.0 6,346.1
Cost of goods sold (3,920.2) (4,018.7)
*URVVSURW 2,298.8 2,327.4

Operating expenses 8 (1,792.5) (1,909.2)

2SHUDWLQJSURW 6 506.3 418.2

Finance income 7.4 9.5

Finance costs (69.7) (77.7)
Finance costs, net 9 (62.3) (68.2)
Share of results of equity method investments 15 13.8 7.1
3URWEHIRUHWD[ 457.8 357.1

Tax 10 (113.8) (76.4)

3URWDIWHUWD[ 344.0 280.7

$WWULEXWDEOHWR
Owners of the parent 343.5 280.3
Non-controlling interests 0.5 0.4
344.0 280.7

%DVLFDQGGLOXWHGHDUQLQJVSHUVKDUH 11 0.95 0.77

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

COC016_.indb 114 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 115

Strategic Report
Consolidated Statement of Comprehensive Income
Year ended 31 December
2016 2015
million PLOOLRQ
3URWDIWHUWD[ 344.0 280.7
Other comprehensive income:
,WHPVWKDWPD\EHVXEVHTXHQWO\UHFODVVLHGWRLQFRPHVWDWHPHQW

Corporate Governance
$YDLODEOHIRUVDOHQDQFLDODVVHWV
Valuation (loss) / gain during the year (0.1) 0.1
&DVKRZKHGJHV
Net losses during the year (48.2) (5.2)
1HWORVVHVUHFODVVLHGWRLQFRPHVWDWHPHQWIRUWKH\HDU 12.8 4.6
Transfers to inventory for the year 4.1 (31.3) (19.7) (20.3)
Foreign currency translation (112.9) (65.8)
Share of other comprehensive income of equity method investments (7.5) (0.2)
,QFRPHWD[UHODWLQJWRLWHPVWKDWPD\EHVXEVHTXHQWO\UHFODVVLHGWR
income statement (refer to Note 12) 1.1 5.5
(150.7) (80.7)

Financial Statements
,WHPVWKDWZLOOQRWEHVXEVHTXHQWO\UHFODVVLHGWRLQFRPHVWDWHPHQW
Actuarial (losses) / gains (41.7) 11.1
,QFRPHWD[UHODWLQJWRLWHPVWKDWZLOOQRWEHVXEVHTXHQWO\UHFODVVLHGWR
income statement (refer to Note 12) 7.0 (2.9)
(34.7) 8.2
Other comprehensive income for the year, net of tax (refer to Note 12) (185.4) (72.5)
Total comprehensive income for the year 158.6 208.2

7RWDOFRPSUHKHQVLYHLQFRPHDWWULEXWDEOHWR
Owners of the parent 158.1 207.8
Non-controlling interests 0.5 0.4

Swiss Statutory Reporting

158.6 208.2

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

Supplementary Information

COC016_.indb 115 3/16/17 2:36 PM

 Coca-Cola HBC
116 2016 Integrated Annual Report

Financial Statements continued

Consolidated Balance Sheet

b As at 31 December
2016 2015
Note million PLOOLRQ
Assets
Intangible assets 13 1,885.7 1,911.6
Property, plant and equipment 14 2,406.6 2,545.5
Equity method investments 15 117.0 113.8
'HULYDWLYHQDQFLDOLQVWUXPHQWV 23 8.1 6.6
Deferred tax assets 10 57.5 56.3
Other non-current assets 17 28.7 31.4
7RWDOQRQFXUUHQWDVVHWV 4,503.6 4,665.2

Inventories 16 431.5 435.8

Trade, other receivables and assets 17 1,030.8 909.5
'HULYDWLYHQDQFLDOLQVWUXPHQWV 23 7.9 16.9
Current tax assets 6.1 12.9
Cash and cash equivalents 24 573.2 487.4
b 2,049.5 1,862.5
$VVHWVFODVVLHGDVKHOGIRUVDOH 18 11.8 5.5
Total current assets 2,061.3 1,868.0
Total assets 6,564.9 6,533.2

Liabilities
Borrowings 24 156.5 781.5
'HULYDWLYHQDQFLDOLQVWUXPHQWV 23 14.2 40.9
Trade and other payables 19 1,587.3 1,503.6
3URYLVLRQVDQGHPSOR\HHEHQHWV 20 118.6 86.8
Current tax liabilities 91.5 78.1
Total current liabilities 1,968.1 2,490.9

Borrowings 24 1,468.1 923.0

'HULYDWLYHQDQFLDOLQVWUXPHQWV 23 1.3 14.5
Deferred tax liabilities 10 124.1 132.0
3URYLVLRQVDQGHPSOR\HHEHQHWV 20 125.0 141.5
Other non-current liabilities 8.2 7.2
7RWDOQRQFXUUHQWOLDELOLWLHV 1,726.7 1,218.2
Total liabilities 3,694.8 3,709.1

Equity
Share capital 25 1,990.8 2,000.1
Share premium 25 4,854.6 5,028.3
Group reorganisation reserve 25 (6,472.1) (6,472.1)
Treasury shares 25 (70.7) (132.0)
Exchange equalisation reserve 25 (801.8) (681.4)
Other reserves 25 245.1 260.4
Retained earnings b 3,119.7 2,816.5
Equity attributable to owners of the parent b 2,865.6 2,819.8
Non-controlling interests b 4.5 4.3
Total equity b 2,870.1 2,824.1
Total equity and liabilities b 6,564.9 6,533.2

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

COC016_.indb 116 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 117

Strategic Report
Consolidated Statement of Changes in Equity
Attributable to owners of the parent
Group Exchange Non-
Share Share reorganisation Treasury equalisation Other Retained controlling Total
capital premium reserve shares reserve reserves earnings Total interests equity
PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ million PLOOLRQ million
Balance as at 1 January 2015 1,998.1 5,157.6 (6,472.1) (70.7) (615.3) 259.7 2,529.7 2,787.0 4.1 2,791.1
Shares issued to employees

Corporate Governance
exercising stock options 2.0 3.1 5.1 5.1
6KDUHEDVHGFRPSHQVDWLRQ
Options and performance
shares 8.8 8.8 8.8
0RYHPHQWLQVKDUHVKHOGIRU
equity compensation plan (0.6) 1.3 0.7 0.7
Acquisition of treasury shares (58.5) (58.5) (58.5)
Appropriation of reserves (2.2) 5.2 (3.0)
Dividends (132.4) 1.3 (131.1) (0.2) (131.3)
2,000.1 5,028.3 (6,472.1) (132.0) (615.3) 275.0 2,528.0 2,612.0 3.9 2,615.9
3URWIRUWKH\HDUQHWRIWD[ 280.3 280.3 0.4 280.7

Financial Statements
Other comprehensive income for
the year, net of tax (66.1) (14.6) 8.2 (72.5) (72.5)
Total comprehensive income for
the year, net of tax1 (66.1) (14.6) 288.5 207.8 0.4 208.2
Balance as at 31 December 2015 2,000.1 5,028.3 (6,472.1) (132.0) (681.4) 260.4 2,816.5 2,819.8 4.3 2,824.1
 7KHDPRXQWLQFOXGHGLQWKHH[FKDQJHHTXDOLVDWLRQUHVHUYHRIPORVVIRUUHSUHVHQWVWKHH[FKDQJHORVVDWWULEXWHGWRWKHRZQHUVRIWKHSDUHQWLQFOXGLQJP
loss relating to the share of other comprehensive income of equity method investments.
7KHDPRXQWLQFOXGHGLQRWKHUUHVHUYHVRIPORVVIRUFRQVLVWVRIJDLQRQYDOXDWLRQRIDYDLODEOHIRUVDOHQDQFLDODVVHWVRIPFDVKRZKHGJHVORVVHV
RIbPPJDLQUHODWLQJWRVKDUHRIRWKHUFRPSUHKHQVLYHLQFRPHRIHTXLW\PHWKRGLQYHVWPHQWVDQGWKHGHIHUUHGWD[LQFRPHWKHUHRIDPRXQWLQJWRP
7KHDPRXQWRIPJDLQFRPSULVHVSURWIRUWKH\HDURIPSOXVDFWXDULDOJDLQVRIPOHVVDGHIHUUHGWD[H[SHQVHRIP
7KHDPRXQWRIPJDLQLQFOXGHGLQQRQFRQWUROOLQJLQWHUHVWVIRUUHSUHVHQWVWKHVKDUHRIQRQFRQWUROOLQJLQWHUHVWVLQUHWDLQHGHDUQLQJV

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

Swiss Statutory Reporting

Supplementary Information

COC016_.indb 117 3/16/17 2:36 PM

 Coca-Cola HBC
118 2016 Integrated Annual Report

Financial Statements continued

Consolidated Statement of Changes in Equity continued

Attributable to owners of the parent
Group Exchange Non-
Share Share reorganisation Treasury equalisation Other Retained controlling Total
capital premium reserve shares reserve reserves earnings Total interests equity
PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ million PLOOLRQ million
Balance as at 1 January 2016 2,000.1 5,028.3 (6,472.1) (132.0) (681.4) 260.4 2,816.5 2,819.8 4.3 2,824.1
Shares issued to employees
exercising stock options 9.1 12.5 21.6 21.6
6KDUHEDVHGFRPSHQVDWLRQ
Options and performance
shares 8.1 8.1 8.1
0RYHPHQWLQVKDUHVKHOGIRU
equity compensation plan (0.4) (0.4) (0.4)
Sale of own shares 3.1 3.1 3.1
Cancellation of shares (18.4) (40.1) 58.5
Appropriation of reserves 0.1 6.9 (7.0)
Dividends (146.1) 1.4 (144.7) (0.3) (145.0)
1,990.8 4,854.6 (6,472.1) (70.7) (681.4) 275.4 2,810.9 2,707.5 4.0 2,711.5
3URWIRUWKH\HDUQHWRIWD[ 343.5 343.5 0.5 344.0
Other comprehensive income
for the year, net of tax (120.4) (30.3) (34.7) (185.4) (185.4)
Total comprehensive income
for the year, net of tax2 (120.4) (30.3) 308.8 158.1 0.5 158.6
Balance as at 31 December 2016 1,990.8 4,854.6 (6,472.1) (70.7) (801.8) 245.1 3,119.7 2,865.6 4.5 2,870.1
 7KHDPRXQWLQFOXGHGLQWKHH[FKDQJHHTXDOLVDWLRQUHVHUYHRIPORVVIRUUHSUHVHQWVWKHH[FKDQJHORVVDWWULEXWHGWRWKHRZQHUVRIWKHSDUHQWLQFOXGLQJ
PORVVUHODWLQJWRVKDUHRIRWKHUFRPSUHKHQVLYHLQFRPHRIHTXLW\PHWKRGLQYHVWPHQWV
7KHDPRXQWLQFOXGHGLQRWKHUUHVHUYHVRIPORVVIRUFRQVLVWVRIORVVRQYDOXDWLRQRIDYDLODEOHIRUVDOHQDQFLDODVVHWVRIPFDVKRZKHGJHVORVVHV
RIbPDQGWKHGHIHUUHGWD[LQFRPHWKHUHRIDPRXQWLQJWRP
7KHDPRXQWRIPJDLQFRPSULVHVSURWIRUWKH\HDURIPOHVVDFWXDULDOORVVHVRIPSOXVDGHIHUUHGWD[LQFRPHRIP
7KHDPRXQWRIPJDLQLQFOXGHGLQQRQFRQWUROOLQJLQWHUHVWVIRUUHSUHVHQWVWKHVKDUHRIQRQFRQWUROOLQJLQWHUHVWVLQUHWDLQHGHDUQLQJV

)RUIXUWKHUGHWDLOVSOHDVHUHIHUWR1RWH(TXLW\DQG1RWH6KDUHEDVHGSD\PHQWV
7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

COC016_.indb 118 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 119

Strategic Report
Consolidated Cash Flow Statement
Year ended 31 December
2016 2015
Note million PLOOLRQ
Operating activities
3URWDIWHUWD[ 344.0 280.7
Finance costs, net 9 62.3 68.2

Corporate Governance
Share of results of equity method investments 15 (13.8) (7.1)
Tax charged to the income statement 10 113.8 76.4
Depreciation of property, plant and equipment 14 305.5 308.1
Impairment of property, plant and equipment 14 26.9 32.1
Employee stock options and performance shares 27 8.1 8.8
Amortisation of intangible assets 13 0.4 0.4
Other non-cash items (1.3) (1.3)
845.9 766.3
(Gain) / loss on disposals of non-current assets 8 (2.9) 1.8
Decrease / (increase) in inventories 3.8 (37.1)
Increase in trade and other receivables (122.6) (13.8)

Financial Statements
Increase in trade and other payables 131.2 94.8
Tax paid (92.1) (72.7)
Net cash from operating activities 763.3 739.3

Investing activities
Payments for purchases of property, plant and equipment (347.8) (331.5)
Proceeds from sales of property, plant and equipment 35.9 17.8
Net receipts from investments 22,26 17.8 120.9
Loans to related parties 2.8 (2.7)
Interest received 7.3 9.5

Swiss Statutory Reporting

Payments for acquisition of subsidiaries 22 (19.5)
Net cash used in investing activities (303.5) (186.0)

Financing activities
Share buy-back payments 25 (58.5)
Proceeds from sale of own shares 3.1
Payments for shares held by non-controlling interests (0.7) (1.2)
Proceeds from shares issued to employees exercising stock options 25 21.6 5.1
Dividends paid to owners of the parent 25 (144.7) (131.1)
Dividends paid to non-controlling interests (0.3) (0.2)
Proceeds from borrowings 679.6 104.2
Supplementary Information

Repayments of borrowings (738.2) (524.2)

3ULQFLSDOUHSD\PHQWVRIQDQFHOHDVHREOLJDWLRQV (20.2) (13.8)
Payments for settlement of forward starting swaps (55.4)
Interest paid (72.8) (69.5)
1HWFDVKXVHGLQQDQFLQJDFWLYLWLHV (328.0) (689.2)
Net increase / (decrease) in cash and cash equivalents 131.8 (135.9)

Movement in cash and cash equivalents

Cash and cash equivalents at 1 January 487.4 636.3
Net increase / (decrease) in cash and cash equivalents 131.8 (135.9)
(HFWRIFKDQJHVLQH[FKDQJHUDWHV (46.0) (13.0)
Cash and cash equivalents at 31 December 24 573.2 487.4

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

COC016_.indb 119 3/16/17 2:36 PM

 Coca-Cola HBC
120 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements

1. Description of business
Coca-Cola HBC AG and its subsidiaries (the Group or Coca-Cola HBC or the Company) are principally engaged in the production, sales and
distribution of non-alcoholic ready-to-drink beverages, under franchise from The Coca-Cola Company. The Company distributes its products
in 27 countries in Europe and Nigeria. Information on the Companys operations by segment is included in Note 6.
On 11 October 2012, Coca-Cola HBC, a Swiss stock corporation (Aktiengesellschaft/Socit Anonyme) incorporated by Kar-Tess Holding
DUHODWHGSDUW\RIWKH*URXSVHH1RWHDQQRXQFHGDYROXQWDU\VKDUHH[FKDQJHRHUWRDFTXLUHDOORXWVWDQGLQJRUGLQDU\UHJLVWHUHGVKDUHV
DQGDOO$PHULFDQGHSRVLWDU\VKDUHVRI&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\6$$VDUHVXOWRIWKHVXFFHVVIXOFRPSOHWLRQRIWKLVRHURQ
$SULO&RFD&ROD+%&DFTXLUHGRIWKHLVVXHG&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\6$VKDUHVLQFOXGLQJVKDUHVUHSUHVHQWHG
by American depositary shares, and became the new parent company of the Group. On 17 June 2013, Coca-Cola HBC completed its
statutory buy-out of the remaining shares of Coca-Cola Hellenic Bottling Company S.A. that it did not acquire upon completion of its
YROXQWDU\VKDUHH[FKDQJHRHU&RQVHTXHQWO\&RFD&ROD+%&DFTXLUHGRI&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\6$ZKLFKZDV
eventually delisted from the Athens Exchange, from the London Stock Exchange where it had a secondary listing and from the New York Stock
Exchange where American depositary shares were listed.
7KHVKDUHVRI&RFD&ROD+%&VWDUWHGWUDGLQJLQWKHSUHPLXPVHJPHQWRIWKH/RQGRQ6WRFN([FKDQJH7LFNHUV\PERO&&+RQWKH$WKHQV
([FKDQJH7LFNHUV\PERO(((DQGUHJXODUZD\WUDGLQJLQ&RFD&ROD+%&$'6FRPPHQFHGRQWKH1HZ<RUN6WRFN([FKDQJH7LFNHUV\PERO
CCH) on 29 April 2013. On 24 July 2014 the Group proceeded to the delisting of its American Depository Receipts from the New York Stock
Exchange and terminated its reporting obligations under the US Securities Exchange Act of 1934. The deregistration of Coca-Cola HBC
VKDUHVXQGHUWKH866HFXULWLHV([FKDQJH$FWRIDQGWKHWHUPLQDWLRQRILWVUHSRUWLQJREOLJDWLRQVEHFDPHHHFWLYHRQ1RYHPEHU

2. Basis of preparation and consolidation

Basis of preparation
7KHFRQVROLGDWHGQDQFLDOVWDWHPHQWVLQFOXGHGLQWKLVGRFXPHQWDUHSUHSDUHGLQDFFRUGDQFHZLWK,QWHUQDWLRQDO)LQDQFLDO5HSRUWLQJ6WDQGDUGV
(IFRS) as issued by the International Accounting Standards Board (IASB).
7KHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDUHSUHSDUHGRQDJRLQJFRQFHUQEDVLVXQGHUWKHKLVWRULFDOFRVWFRQYHQWLRQDVPRGLHGE\WKH
UHYDOXDWLRQRIDYDLODEOHIRUVDOHQDQFLDODVVHWVDQGGHULYDWLYHQDQFLDOLQVWUXPHQWV
7KHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWVZHUHDSSURYHGIRULVVXHE\WKH%RDUGRI'LUHFWRUVRQb0DUFKDQGDUHH[SHFWHGWREHYHULHG
DWWKH$QQXDO*HQHUDO0HHWLQJWREHKHOGRQb-XQH
7KHVWUXFWXUHRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVKDVEHHQUHYLVHGZLWKWKHREMHFWLYHRIEHLQJPRUHHHFWLYHLQSHUPLWWLQJWKHXVHUV
WRLGHQWLI\UHOHYDQWLQIRUPDWLRQPRUHHDVLO\$VZHOODVUHRUGHULQJWKHQRWHVVLJQLFDQWDFFRXQWLQJSROLFLHVMXGJHPHQWVNH\HVWLPDWHVDQG
assumptions, as well as related qualitative and quantitative disclosures, have been presented together in the same note in order to provide a
PRUHKROLVWLFGLVFXVVLRQWRWKHXVHUVRIWKHQDQFLDOVWDWHPHQWV

Basis of consolidation
Subsidiary undertakings are those companies over which the Group, directly or indirectly, has control. The Group controls an entity when the
*URXSLVH[SRVHGWRRUKDVULJKWVWRYDULDEOHUHWXUQVIURPLWVLQYROYHPHQWZLWKWKHHQWLW\DQGKDVWKHDELOLW\WRDHFWWKRVHUHWXUQVWKURXJK
power over the entity. Subsidiary undertakings are consolidated from the date on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred out of the Group.
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is, as transactions
ZLWKWKHRZQHUVLQWKHLUFDSDFLW\DVRZQHUV7KHGLHUHQFHEHWZHHQIDLUYDOXHRIDQ\FRQVLGHUDWLRQSDLGDQGWKHUHOHYDQWVKDUHDFTXLUHGRIWKH
carrying value of net assets of the subsidiary is recorded in equity.
Inter-company transactions and balances between Group companies are eliminated. The subsidiaries accounting policies are consistent with
policies adopted by the Group.
When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value at the date when such control
is lost, with the change in carrying amount recognised in the income statement. The fair value is the initial carrying amount for the
SXUSRVHVRIVXEVHTXHQWO\DFFRXQWLQJIRUWKHUHWDLQHGLQWHUHVWDVDQDVVRFLDWHMRLQWYHQWXUHRUQDQFLDODVVHW,QDGGLWLRQDQ\DPRXQWV
previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of
WKHUHODWHGDVVHWVRUOLDELOLWLHV7KLVPD\PHDQWKDWDPRXQWVSUHYLRXVO\UHFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPHDUHUHFODVVLHGWRWKH
income statement.

3. Foreign currency and translation

7KHLQGLYLGXDOQDQFLDOVWDWHPHQWVRIHDFK*URXSHQWLW\DUHSUHVHQWHGLQWKHFXUUHQF\RIWKHSULPDU\HFRQRPLFHQYLURQPHQWLQZKLFKWKH
HQWLW\RSHUDWHVLWVIXQFWLRQDOFXUUHQF\)RUWKHSXUSRVHRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVWKHUHVXOWVDQGQDQFLDOSRVLWLRQRIHDFK
HQWLW\DUHH[SUHVVHGLQ(XURZKLFKLVWKHSUHVHQWDWLRQFXUUHQF\IRUWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

COC016_.indb 120 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 121

Strategic Report
The assets and liabilities of foreign subsidiaries are translated into Euro at the exchange rate ruling at the balance sheet date. The results
of foreign subsidiaries are translated into Euro using the average monthly exchange rate (being a reasonable approximation of the rates
SUHYDLOLQJRQWKHWUDQVDFWLRQGDWHV7KHH[FKDQJHGLHUHQFHVDULVLQJRQWUDQVODWLRQDUHUHFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPH2Q
GLVSRVDORIDIRUHLJQHQWLW\DFFXPXODWHGH[FKDQJHGLHUHQFHVDUHUHFRJQLVHGDVDFRPSRQHQWRIWKHJDLQRUORVVRQGLVSRVDO
7UDQVDFWLRQVLQIRUHLJQFXUUHQFLHVDUHUHFRUGHGDWWKHUDWHUXOLQJDWWKHGDWHRIWUDQVDFWLRQ0RQHWDU\DVVHWVDQGOLDELOLWLHVGHQRPLQDWHGLQ
foreign currencies are remeasured at the rate of exchange ruling at the balance sheet date. All gains and losses arising on remeasurement are
LQFOXGHGLQWKHLQFRPHVWDWHPHQWH[FHSWIRUH[FKDQJHGLHUHQFHVDULVLQJRQDVVHWVDQGOLDELOLWLHVFODVVLHGDVFDVKRZKHGJHVZKLFKDUH

Corporate Governance
deferred in equity until the occurrence of the hedged transaction, at which time they are recognised in the income statement. Share capital
denominated in a currency other than the functional currency is initially stated at spot rate of the date of issue but is not retranslated.
7KHSULQFLSDOH[FKDQJHUDWHVXVHGIRUWUDQVDFWLRQDQGWUDQVODWLRQSXUSRVHVLQUHVSHFWRIRQH(XURDUH
Average Average Closing Closing
2016 2015 2016 2015
US dollar 1.11 1.11 1.04 1.09
UK sterling 0.82 0.72 0.85 0.74
Polish zloty 4.36 4.17 4.40 4.23
Nigerian naira 279.97 215.63 317.95 216.15
Hungarian forint 311.40 309.12 309.22 312.98
Swiss franc 1.09 1.06 1.07 1.08

Financial Statements
Russian rouble 74.36 67.67 64.72 78.95
Romanian leu 4.49 4.44 4.54 4.54
Ukrainian hryvnia 28.27 24.52 27.97 26.06
Czech koruna 27.03 27.29 27.02 27.03
Serbian dinar 123.08 120.70 123.30 121.33

4. Accounting pronouncements
a) Accounting pronouncements adopted in 2016
In the current period, the Group has adopted the following standards and amendments which were issued by the IASB, that are relevant to its
RSHUDWLRQVDQGHHFWLYHIRUDFFRXQWLQJSHULRGVEHJLQQLQJRQ-DQXDU\

Swiss Statutory Reporting

$PHQGPHQWVWR,)56b$FFRXQWLQJIRUDFTXLVLWLRQVRILQWHUHVWVLQMRLQWRSHUDWLRQV
$QQXDO,PSURYHPHQWVWR,)56V&\FOH
$PHQGPHQWVWR,$6b'LVFORVXUHLQLWLDWLYH
7KHDGRSWLRQRIWKHVHDPHQGPHQWVGLGQRWKDYHDQ\LPSDFWRQWKHFXUUHQWSHULRGRUDQ\SULRUSHULRGDQGDUHQRWOLNHO\WRDHFW
IXWXUHbSHULRGV

b) Accounting pronouncements not yet adopted

$WWKHGDWHRIDSSURYDORIWKHVHFRQVROLGDWHGQDQFLDOVWDWHPHQWVWKHIROORZLQJVWDQGDUGVDQGLQWHUSUHWDWLRQVUHOHYDQWWRWKH&RPSDQ\V
RSHUDWLRQVZHUHLVVXHGEXWQRW\HWHHFWLYHDQGQRWHDUO\DGRSWHG
IFRS 15, Revenue from Contracts with Customers that will replace IAS 18, which covers contracts for goods and services, and IAS 11, which
Supplementary Information

covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service
LVWUDQVIHUUHGWRDFXVWRPHU,)56LVHHFWLYHIRUDQQXDOSHULRGVEHJLQQLQJRQRUDIWHU-DQXDU\0DQDJHPHQWKDVFRPSOHWHGDQ
LQLWLDOLPSDFWDVVHVVPHQWRQDUHDVWKDWPLJKWEHDHFWHG7KHDUHDVRIIRFXVKDYHEHHQWKHLGHQWLFDWLRQRIPDWHULDOULJKWVWKDWVKRXOGEH
DFFRXQWHGIRUDVSHUIRUPDQFHREOLJDWLRQVDFFRXQWLQJIRUFRQWUDFWIXOOPHQWFRVWVDQGYDULDEOHFRQVLGHUDWLRQ%DVHGRQWKHDVVHVVPHQW
WKHb*URXSEHOLHYHVWKDWWKHDGRSWLRQRI,)56ZLOOQRWKDYHDVLJQLFDQWLPSDFWRQLWVFRQVROLGDWHGQDQFLDOVWDWHPHQWV
IFRS 9, Financial Instruments, ZKLFKUHHFWVDOOSKDVHVRIWKHQDQFLDOLQVWUXPHQWVSURMHFWDQGUHSODFHV,$6Financial Instruments
Recognition and Measurement7KHVWDQGDUGLQWURGXFHVQHZUHTXLUHPHQWVIRUFODVVLFDWLRQDQGPHDVXUHPHQWLPSDLUPHQWDQGKHGJH
DFFRXQWLQJ,)56LVHHFWLYHIRUDQQXDOSHULRGVEHJLQQLQJRQRUDIWHU-DQXDU\7KHQHZKHGJHDFFRXQWLQJUHTXLUHPHQWVZLOODOLJQ
the accounting for hedging instruments more closely with the Groups risk management practices and therefore more hedge relationships
are expected to be eligible for hedge accounting. Based on a preliminary assessment, it would appear that the Groups current hedge
relationships would qualify as continuing hedges upon the adoption of IFRS 9. Furthermore, the Group will assess possible changes related
WRbWKHDSSOLFDWLRQRIWKHQHZKHGJHDFFRXQWLQJUHTXLUHPHQWVLQUHODWLRQWRWKHDFFRXQWLQJWUHDWPHQWWREHDSSOLHGWRWKHIRUZDUGHOHPHQW
RIbWKHIRUZDUGFRQWUDFWVDQGWKHIXWXUHWLPHYDOXHRIRSWLRQVLQPRUHGHWDLOLQ

COC016_.indb 121 3/16/17 2:36 PM

 Coca-Cola HBC
122 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

4. Accounting pronouncements continued

IFRS 16, Leases. The new standard supersedes IAS 17 and its objective is to ensure that lessees and lessors provide relevant information
in a manner that faithfully represents those transactions. IFRS 16 introduces a single lessee accounting model and requires a lessee to
UHFRJQLVHDVVHWVDQGOLDELOLWLHVIRUDOOOHDVHVZLWKDWHUPRIPRUHWKDQPRQWKVXQOHVVWKHXQGHUO\LQJDVVHWLVRIORZYDOXH,)56LVHHFWLYH
for annual periods beginning on or after 1 January 2019. The Group is currently evaluating the impact IFRS 16 will have on its consolidated
QDQFLDOVWDWHPHQWV
,QDGGLWLRQWKHIROORZLQJDPHQGPHQWVKDYHEHHQLVVXHGE\WKH,$6%DQGDUHQRW\HWHHFWLYH7KH*URXSLVFXUUHQWO\HYDOXDWLQJWKHLPSDFW
WKDWWKHVHDPHQGPHQWVDQGLQWHUSUHWDWLRQVZLOOKDYHRQLWVFRQVROLGDWHGQDQFLDOVWDWHPHQWV
$PHQGPHQWVWR,$65HFRJQLWLRQRIGHIHUUHGWD[DVVHWVIRUXQUHDOLVHGORVVHV
$PHQGPHQWVWR,$6'LVFORVXUHLQLWLDWLYH
$PHQGPHQWVWR,)56&ODVVLFDWLRQDQGPHDVXUHPHQWRIVKDUHEDVHGSD\PHQWWUDQVDFWLRQV
IFRIC 22 Foreign currency transactions and advance consideration
Annual Improvements to IFRSs 2014 (20142016 Cycle)

5. Critical accounting estimates and judgements

,QFRQIRUPLW\ZLWK,)56WKHSUHSDUDWLRQRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVIRU&RFD&ROD+%&UHTXLUHVPDQDJHPHQWWRPDNH
HVWLPDWHVDQGMXGJHPHQWVWKDWDHFWWKHUHSRUWHGDPRXQWVRIDVVHWVOLDELOLWLHVUHYHQXHVDQGH[SHQVHVDQGWKHGLVFORVXUHRIFRQWLQJHQW
DVVHWVDQGOLDELOLWLHVLQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDQGDFFRPSDQ\LQJQRWHV$OWKRXJKWKHVHHVWLPDWHVDQGMXGJHPHQWVDUH
EDVHGRQPDQDJHPHQWVNQRZOHGJHRIFXUUHQWHYHQWVDQGDFWLRQVWKDWPD\EHXQGHUWDNHQLQWKHIXWXUHDFWXDOUHVXOWVPD\XOWLPDWHO\GLHU
from estimates.

Estimates
Income taxes (refer to Note 10)
,PSDLUPHQWRIJRRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVUHIHUWR1RWH
(PSOR\HHEHQHWVGHQHGEHQHWSHQVLRQSODQVUHIHUWR1RWH

Judgements
Joint arrangements (refer to Note 15)

6. Segmental analysis
The Group has one business, being the production, sale and distribution of ready-to-drink, primarily non-alcoholic, beverages. The Group
RSHUDWHVLQFRXQWULHVZKLFKDUHDJJUHJDWHGLQUHSRUWDEOHVHJPHQWVDVIROORZV

Emerging markets: Armenia, Belarus, Bosnia and Herzegovina,

%XOJDULD)<5200ROGRYD0RQWHQHJUR
Nigeria, Romania, the Russian Federation, Serbia
(including the Republic of Kosovo) and Ukraine.
Developing markets: Croatia, Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Slovakia and Slovenia.
Established markets: Austria, Cyprus, Greece, Italy, Northern Ireland,
the Republic of Ireland and Switzerland.

The Groups operations in each of the three reportable segments have been aggregated on the basis of their similar economic characteristics,
assessed by reference to their net sales revenue per unit case as well as disposable income per capita, exposure to political and economic
volatility, regulatory environments, customers and distribution infrastructures. The accounting policies of the reportable segments are the
same as those adopted by the Group. The Groups chief operating decision maker is its Operating Committee, which evaluates performance
DQGDOORFDWHVUHVRXUFHVEDVHGRQYROXPHQHWVDOHVUHYHQXHDQGRSHUDWLQJSURW

COC016_.indb 122 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 123

Strategic Report
a) Volume and net sales revenue
The Group sales volume in million unit cases1IRUWKH\HDUVHQGHG'HFHPEHUZDVDVIROORZV
2016 2015
Established 606.6 621.1
Developing 383.5 378.7
Emerging 1,067.8 1,055.2
Total volume 2,057.9 2,055.0

Corporate Governance
1. One unit case corresponds to approximately 5.678 litres or 24 servings, being a typically used measure of volume. Volume data is derived from unaudited operational data.

1HWVDOHVUHYHQXHSHUUHSRUWDEOHVHJPHQWIRUWKH\HDUVHQGHG'HFHPEHULVSUHVHQWHGLQWKHJUDSKVEHORZ

2016 2015
6,219.0m 6,346.1m

Financial Statements
Emerging: 2,717.0m Emerging: 2,768.5m
Developing: 1,094.2m Developing: 1,092.0m
Established: 2,407.8m Established: 2,485.6m

There are no material amounts of sales or transfers between the Groups segments nor are there any customers who represent more than
RIQHWVDOHVUHYHQXHIRUWKH*URXS
In addition to non-alcoholic, ready-to-drink beverages (NARTD), the Group sells and distributes premium spirits. An analysis of volume and
QHWVDOHVUHYHQXHSHUSURGXFWW\SHIRUWKH\HDUVHQGHG'HFHPEHULVSUHVHQWHGEHORZ
2016 2015
Volume in million unit cases2 million1 PLOOLRQ1

Swiss Statutory Reporting

NARTD3 2,055.5 2,052.6
Premium spirits2 2.4 2.4
Total volume 2,057.9 2,055.0

Net sales revenue

NARTD 6,040.6 6,164.3
Premium spirits 178.4 181.8
Total net sales revenue 6,219.0 6,346.1
1. Excluding volume, which is reported in unit cases.
2. One unit case corresponds to approximately 5.678 litres or 24 servings, being a typically used measure of volume. Volume data is derived from unaudited operational
Supplementary Information

data. For premium spirits volume, one unit case corresponds to 5.678 litres.
 1$57'QRQDOFRKROLFUHDG\WRGULQNEHYHUDJHV

Net sales revenue from external customers attributed to Switzerland (the Groups country of domicile), Russia, Italy and Nigeria was as follows
IRUWKH\HDUVHQGHG'HFHPEHU
2016 2015
million PLOOLRQ
Switzerland 423.6 447.0
Russia 983.0 1,039.3
Italy 897.7 919.3
Nigeria 583.3 621.6
All countries, other than Switzerland, Russia, Italy and Nigeria 3,331.4 3,318.9
Total net sales revenue from external customers 6,219.0 6,346.1

COC016_.indb 123 3/16/17 2:36 PM

 Coca-Cola HBC
124 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

6. Segmental analysis continued

b) Other income statement items
2016 2015
Year ended 31 December Note million PLOOLRQ
2SHUDWLQJSURW
Established 236.8 171.3
Developing 92.9 87.4
Emerging 176.6 159.5
7RWDORSHUDWLQJSURW 506.3 418.2

,QWHUHVWH[SHQVHDQGRWKHUQDQFHFRVWV
Established (40.1) (30.5)
Developing (4.9) (2.0)
Emerging (8.9) (16.0)
Corporate4 (133.2) (131.8)
Inter segment interest expense 117.4 110.1
,QWHUHVWH[SHQVHDQGRWKHUQDQFHFRVWV 9 (69.7) (70.2)

Finance income
Established 0.5 (0.1)
Developing 1.7 1.9
Emerging 21.5 29.9
Corporate4 101.1 87.9
,QWHUVHJPHQWQDQFHLQFRPH (117.4) (110.1)
7RWDOQDQFHLQFRPH 9 7.4 9.5

Income tax expense

Established (49.7) (25.3)
Developing (19.0) (19.3)
Emerging (35.7) (24.8)
Corporate4 (9.4) (7.0)
Total income tax expense 10 (113.8) (76.4)

Reconciling items
Net foreign exchange losses 9 (7.5)
Share of results of equity method investments 15 13.8 7.1
3URWDIWHUWD[ 344.0 280.7

Depreciation and impairment of property, plant and equipment and amortisation of intangible assets included in the measure of operating
SURWDUHDVIROORZV
2016 2015
Note million PLOOLRQ
Depreciation and impairment of property, plant and equipment
Established (95.8) (106.2)
Developing (56.6) (57.9)
Emerging (180.0) (176.1)
Total depreciation and impairment of property, plant and equipment 14 (332.4) (340.2)
Amortisation of intangible assets
Emerging (0.4) (0.4)
Total amortisation of intangible assets 13 (0.4) (0.4)
 &RUSRUDWHUHIHUVWRKROGLQJQDQFHDQGRWKHUQRQRSHUDWLQJVXEVLGLDULHVRIWKH*URXS

COC016_.indb 124 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 125

Strategic Report
c) Other items
The balance of non-current assets attributed to Switzerland (the Groups country of domicile), Russia, Italy and Nigeria was as follows for the
\HDUVHQGHG'HFHPEHU
2016 2015
1RQFXUUHQWDVVHWV5 million PLOOLRQ
Switzerland 546.0 554.6
Russia 578.0 482.0
Italy 990.7 1,004.1

Corporate Governance
Nigeria 439.9 584.9
All countries, other than Switzerland, Russia, Italy and Nigeria 1,759.3 1,860.1
7RWDOQRQFXUUHQWDVVHWV5 4,313.9 4,485.7
 ([FOXGLQJQDQFLDOLQVWUXPHQWVHTXLW\PHWKRGLQYHVWPHQWVDQGGHIHUUHGWD[DVVHWV

([SHQGLWXUHRISURSHUW\SODQWDQGHTXLSPHQWSHUUHSRUWDEOHVHJPHQWZDVDVIROORZVIRUWKH\HDUVHQGHG'HFHPEHU
2016 2015
million PLOOLRQ
Established 94.7 76.3
Developing 44.3 34.5
Emerging 208.8 220.7

Financial Statements
Total expenditure of property, plant and equipment 347.8 331.5

,QPLG-XQHWKHQDLUDZDVVLJQLFDQWO\GHYDOXHGDJDLQVWWKH(XURUHVXOWLQJLQDIRUHLJQFXUUHQF\WUDQVODWLRQORVVRIPLOOLRQZKLFK
was recognised within other comprehensive income of the consolidated statement of comprehensive income (refer to Note 12). In spite of
WKHGHYDOXDWLRQDVDUHVXOWRIIXUWKHUSUHVVXUHVLQWKHHFRQRP\WKHRFLDOQDLUDUDWHPD\RQFHDJDLQQRWEHUHHFWLQJWKHVXSSO\DQGGHPDQG
rate for the currency, which may result in further volatility in the local currency. The Group is continuously monitoring the situation in Nigeria in
order to ensure that timely actions and initiatives are undertaken to minimise potential adverse impact on its performance.
Tensions and market changes in Ukraine and the Russian Federation that have adversely impacted the economies of these countries
and, among other things, have resulted in increased volatility in currency markets, causing the Russian rouble and the Ukrainian hryvnia
WRGHSUHFLDWHVLJQLFDQWO\DJDLQVWVRPHPDMRUFXUUHQFLHVVHHPWREHVXEVLGLQJ$OWKRXJK5XVVLDLVVKRZLQJVLJQVRIVWDELOLVDWLRQRIWKH
economic environment, we continue to monitor and assess the situation in the area so as to minimise potential adverse impact on the
Companys performance.

Swiss Statutory Reporting

7KHPDFURHFRQRPLFDQGQDQFLDOHQYLURQPHQWLQ*UHHFHUHPDLQVIUDJLOH7KHFRQWLQXHGLQVWDELOLW\RIWKH*UHHNEDQNLQJVHFWRUWKH
continuation of capital controls restricting the movement of funds out of Greece and the ongoing need for austerity measures may further
LPSDFWFRQVXPHUVGLVSRVDEOHLQFRPHZKLFKPD\DGYHUVHO\DHFWWKH*URXSVRSHUDWLRQVLQ*UHHFH2XUUHYHQXHIURPRXURSHUDWLRQV
LQ*UHHFHDPRXQWHGWRRIFRQVROLGDWHGQHWVDOHVUHYHQXHDQGDVDW'HFHPEHUQRQFXUUHQWDVVHWVDPRXQWHGWRRIWKH
consolidated non-current assets. We are continuously monitoring developments in Greece.
Supplementary Information

COC016_.indb 125 3/16/17 2:36 PM

 Coca-Cola HBC
126 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

7. Net sales revenue

Accounting policy
1HWVDOHVUHYHQXHLVUHFRJQLVHGZKHQDOORIWKHIROORZLQJFRQGLWLRQVDUHPHWZKHQWKHDPRXQWRIUHYHQXHFDQEHUHOLDEO\PHDVXUHGZKHQ
LWLVSUREDEOHWKDWIXWXUHHFRQRPLFEHQHWVZLOORZWRWKH*URXSDQGZKHQWKHVLJQLFDQWULVNVDQGUHZDUGVRIRZQHUVKLSRIWKHSURGXFWV
have passed to the buyer, usually on delivery of goods.
Net sales revenue is measured at the fair value of the consideration received or receivable and is stated net of sales discounts, as well as
listing fees and marketing and promotional incentives provided to customers. Net sales revenue includes excise and other duties where
the Group pays as principal but excludes amounts collected on behalf of third parties, such as value added taxes. Listing fees are incentives
provided to customers for carrying the Groups products in their stores. Listing fees that are subject to contract-based term arrangements
are capitalised and amortised over the term of the contract as a reduction to revenue. All other listing fees as well as marketing and
promotional incentives are a reduction of revenue as incurred.
Coca-Cola HBC receives contributions from The Coca-Cola Company in order to promote sales of their brands. Contributions for price
VXSSRUWPDUNHWLQJDQGSURPRWLRQDOFDPSDLJQVLQUHVSHFWRIVSHFLFFXVWRPHUVDUHUHFRJQLVHGDVDQRVHWWRSURPRWLRQDOLQFHQWLYHV
provided to those customers to which the contributions contractually relate. These contributions are accrued and matched to the
expenditure to which they relate (refer to Note 26).

Refer to Note 6 for an analysis of net sales revenue per reportable segment.
Listing fees and marketing and promotional incentives provided to customers recognised as a reduction to net sales revenue for the years
HQGHG'HFHPEHUDUHSUHVHQWHGEHORZ
2016 2015
million PLOOLRQ
Listing fees 485.9 516.8
0DUNHWLQJDQGSURPRWLRQDOLQFHQWLYHV 216.6 174.9
Total listing fees, marketing and promotional incentives 702.5 691.7

7KHDPRXQWRIOLVWLQJIHHVFDSLWDOLVHGDW'HFHPEHUZDVP'HFHPEHUP2IWKLVEDODQFHP

'HFHPEHUPZDVFODVVLHGDVFXUUHQWSUHSD\PHQWVDQGWKHUHPDLQGHUDVQRQFXUUHQWSUHSD\PHQWV

8. Operating expenses
Accounting policy
5HVWUXFWXULQJH[SHQVHVDUHUHFRUGHGLQDVHSDUDWHOLQHLWHPZLWKLQRSHUDWLQJH[SHQVHVDQGFRPSULVHFRVWVDULVLQJIURPVLJQLFDQW
FKDQJHVLQWKHZD\WKH*URXSFRQGXFWVLWVEXVLQHVVVXFKDVVLJQLFDQWVXSSO\FKDLQLQIUDVWUXFWXUHFKDQJHVRXWVRXUFLQJRIDFWLYLWLHVDQG
centralisation of processes. Redundancy provisions are recognised only when the Group has a present constructive obligation, which is
ZKHQDGHWDLOHGIRUPDOSODQLGHQWLHVWKHEXVLQHVVRUSDUWRIWKHEXVLQHVVFRQFHUQHGWKHORFDWLRQDQGQXPEHURIHPSOR\HHVDHFWHGD
GHWDLOHGHVWLPDWHRIWKHDVVRFLDWHGFRVWVDVZHOODVDQDSSURSULDWHWLPHOLQHDQGWKHHPSOR\HHVDHFWHGKDYHEHHQQRWLHGRIWKHSODQV
main features.

a) Operating expenses
2SHUDWLQJH[SHQVHVIRUWKH\HDUHQGHG'HFHPEHUFRPSULVHG
2016 2015
million PLOOLRQ
Selling expenses 869.9 851.8
Delivery expenses 483.1 531.7
Administrative expenses 401.8 471.7
Restructuring expenses 37.7 54.0
Operating expenses 1,792.5 1,909.2

,QRSHUDWLQJH[SHQVHVLQFOXGHGQHWJDLQVRQGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQWRIPPQHWORVVHV

COC016_.indb 126 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 127

Strategic Report
Restructuring expenses
$VSDUWRIWKHHRUWWRRSWLPLVHLWVFRVWEDVHDQGVXVWDLQFRPSHWLWLYHQHVVLQWKHPDUNHWSODFHWKH&RPSDQ\XQGHUWDNHVUHVWUXFWXULQJ
initiatives. The restructuring concerns mainly employees costs and impairment of property, plant and equipment (refer to Note 14).
5HVWUXFWXULQJH[SHQVHVSHUUHSRUWDEOHVHJPHQWIRUWKH\HDUVHQGHG'HFHPEHUDUHSUHVHQWHGEHORZ

Corporate Governance
2016 2015
37.7m 54.0m

Emerging: 22.0m Emerging: 21.1m

Developing: 6.3m Developing: 9.0m
Established: 9.4m Established: 23.9m

Financial Statements
b) Employee costs
(PSOR\HHFRVWVIRUWKH\HDUVHQGHG'HFHPEHUFRPSULVHG
2016 2015
million PLOOLRQ
Wages and salaries 707.1 760.8
Social security costs 143.0 151.5
3HQVLRQDQGRWKHUHPSOR\HHEHQHWV 112.8 131.3
7HUPLQDWLRQEHQHWV 21.1 26.2
Total employee costs 984.0 1,069.8

7KHDYHUDJHQXPEHURIIXOOWLPHHTXLYDOHQWHPSOR\HHVLQZDV

Swiss Statutory Reporting

(PSOR\HHFRVWVIRULQFOXGHGLQRSHUDWLQJH[SHQVHVDQGFRVWRIJRRGVVROGDPRXQWHGWRPDQGPUHVSHFWLYHO\
PDQGPUHVSHFWLYHO\

c) Directors and senior management remuneration

7KHWRWDOUHPXQHUDWLRQSDLGRUDFFUXHGIRU'LUHFWRUVDQGWKHVHQLRUPDQDJHPHQWWHDPIRUWKH\HDUVHQGHG'HFHPEHUFRPSULVHG
2016 2015
million PLOOLRQ
6DODULHVDQGRWKHUVKRUWWHUPEHQHWV 18.7 12.3
Stock option and performance share awards 4.9 5.1
3HQVLRQDQGSRVWHPSOR\PHQWEHQHWV 0.8 0.8
Total remuneration 24.4 18.2
Supplementary Information

d) Fees and other services of the auditor

$XGLWDQGRWKHUIHHVFKDUJHGLQWKHLQFRPHVWDWHPHQWFRQFHUQLQJWKHDXGLWRURIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
3ULFHZDWHUKRXVH&RRSHUV6$DQGDOLDWHVZHUHDVIROORZVIRUWKH\HDUVHQGHG'HFHPEHU
2016 2015
million PLOOLRQ
Audit fees 4.5 5.0
Audit-related fees 0.4 0.5
Other fees 0.2 0.1
Total audit and all other fees 5.1 5.6

COC016_.indb 127 3/16/17 2:36 PM

 Coca-Cola HBC
128 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

9. Finance costs, net

Accounting policy
,QWHUHVWLQFRPHDQGLQWHUHVWH[SHQVHDUHUHFRJQLVHGXVLQJWKHHHFWLYHLQWHUHVWUDWHPHWKRGDQGDUHUHFRUGHGLQWKHLQFRPHVWDWHPHQW
within Finance income and Finance costs respectively.

)LQDQFHFRVWVQHWIRUWKH\HDUVHQGHG'HFHPEHUFRPSULVHG
2016 2015
million PLOOLRQ
Interest income 7.4 9.5
Interest expense (60.6) (59.4)
2WKHUQDQFHFRVWV (1.4) (1.9)
Net foreign exchange remeasurement losses (7.5)
)LQDQFHFKDUJHVLQFXUUHGZLWKUHVSHFWWRQDQFHOHDVHV (7.7) (8.9)
Finance costs (69.7) (77.7)
Finance costs, net (62.3) (68.2)

2WKHUQDQFHFRVWVLQFOXGHFRPPLWPHQWIHHVRQORDQIDFLOLWLHVQRWGUDZQGRZQDQGRWKHUVLPLODUIHHV

10. Taxation
Accounting policy
Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or in
equity. In this case, the tax is recognised in other comprehensive income or directly in equity.
The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in
WKHFRXQWULHVZKHUHWKH*URXSRSHUDWHVDQGJHQHUDWHVWD[DEOHLQFRPH0DQDJHPHQWSHULRGLFDOO\HYDOXDWHVSRVLWLRQVWDNHQLQWD[UHWXUQV
with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions, where appropriate,
RQbWKHEDVLVRIDPRXQWVH[SHFWHGWREHSDLGWRWKHWD[DXWKRULWLHV
'HIHUUHGWD[LVSURYLGHGXVLQJWKHOLDELOLW\PHWKRGIRUDOOWHPSRUDU\GLHUHQFHVDULVLQJEHWZHHQWKHWD[EDVHVRIDVVHWVDQGOLDELOLWLHVDQG
WKHLUFDUU\LQJYDOXHVIRUQDQFLDOUHSRUWLQJSXUSRVHV+RZHYHUWKHGHIHUUHGWD[OLDELOLWLHVDUHQRWUHFRJQLVHGLIWKH\DULVHIURPWKHLQLWLDO
recognition of goodwill; deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other
WKDQDEXVLQHVVFRPELQDWLRQWKDWDWWKHWLPHRIWKHWUDQVDFWLRQDHFWVQHLWKHUDFFRXQWLQJQRUWD[DEOHSURWRUORVV7D[UDWHVHQDFWHG
RUbVXEVWDQWLYHO\HQDFWHGDWWKHEDODQFHVKHHWGDWHDUHWKRVHWKDWDUHH[SHFWHGWRDSSO\ZKHQWKHGHIHUUHGWD[DVVHWLVUHDOLVHGRU
GHIHUUHGbWD[OLDELOLW\LVVHWWOHG
'HIHUUHGWD[DVVHWVDUHUHFRJQLVHGWRWKHH[WHQWWKDWLWLVSUREDEOHWKDWIXWXUHWD[DEOHSURWZLOOEHDYDLODEOHDJDLQVWZKLFKWKHWHPSRUDU\
GLHUHQFHVFDQEHXWLOLVHG'HIHUUHGWD[DVVHWVDUHUHFRJQLVHGIRUWD[ORVVHVFDUU\IRUZDUGWRWKHH[WHQWWKDWUHDOLVDWLRQRIWKHUHODWHGWD[
EHQHWWKURXJKWKHUHGXFWLRQRIIXWXUHWD[HVLVSUREDEOH
'HIHUUHGWD[LVSURYLGHGRQWHPSRUDU\GLHUHQFHVDULVLQJRQLQYHVWPHQWVLQVXEVLGLDULHVDVVRFLDWHVDQGMRLQWYHQWXUHVH[FHSWZKHUHWKH
WLPLQJRIWKHUHYHUVDORIWKHWHPSRUDU\GLHUHQFHFDQEHFRQWUROOHGE\WKH*URXSDQGLWLVSUREDEOHWKDWWKHWHPSRUDU\GLHUHQFHZLOOQRW
reverse in the foreseeable future. This includes taxation in respect of the retained earnings of overseas subsidiaries only to the extent that,
at the balance sheet date, dividends have been accrued as receivable or a binding agreement to distribute past earnings in future periods
has been entered into by the subsidiary.
'HIHUUHGWD[DVVHWVDQGGHIHUUHGWD[OLDELOLWLHVDUHRVHWLIDOHJDOO\HQIRUFHDEOHULJKWH[LVWVWRRVHWFXUUHQWWD[DVVHWVDJDLQVWFXUUHQW
LQFRPHWD[OLDELOLWLHVDQGWKHGHIHUUHGWD[HVUHODWHWRWKHVDPHWD[DWLRQDXWKRULW\RQHLWKHUWKHVDPHWD[DEOHHQWLW\RUGLHUHQWWD[DEOH
entities where there is an intention to settle the balances on a net basis.

Critical accounting estimates

The Group is subject to income taxes in numerous jurisdictions. There are many transactions and calculations for which the ultimate tax
determination cannot be assessed with certainty in the ordinary course of business. The Group recognises a provision for potential cases
that might arise in the foreseeable future based on assessment of the probabilities as to whether additional taxes will be due. Where the
QDOWD[RXWFRPHRQWKHVHPDWWHUVLVGLHUHQWIURPWKHDPRXQWVWKDWZHUHLQLWLDOO\UHFRUGHGVXFKGLHUHQFHVZLOOLPSDFWWKHLQFRPHWD[
SURYLVLRQLQWKHSHULRGLQZKLFKVXFKGHWHUPLQDWLRQLVPDGH7KH*URXSDQWLFLSDWHVWKDWZHUHWKHQDOWD[RXWFRPHRQWKHMXGJHPHQW
DUHDVWRGLHUIURPPDQDJHPHQWVHVWLPDWHVE\XSWRWKH*URXSVFRQVROLGDWHGWD[H[SHQVHZRXOGLQFUHDVHRUGHFUHDVHE\
DSSUR[LPDWHO\P

COC016_.indb 128 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 129

Strategic Report
7KHLQFRPHWD[FKDUJHIRUWKH\HDUVHQGHG'HFHPEHULVDVIROORZV
2016 2015
million PLOOLRQ
Current tax expense 116.4 93.2
Deferred tax (2.6) (16.8)
Income tax expense 113.8 76.4

7KHWD[RQWKH*URXSVSURWEHIRUHWD[GLHUVIURPWKHWKHRUHWLFDODPRXQWWKDWZRXOGDULVHXVLQJWKHZHLJKWHGDYHUDJHWD[UDWHDSSOLFDEOHWR

Corporate Governance
SURWVRIWKHFRQVROLGDWHGHQWLWLHVDVIROORZV
2016 2015
million PLOOLRQ
3URWEHIRUHWD[ 457.8 357.1

7D[FDOFXODWHGDWGRPHVWLFWD[UDWHVDSSOLFDEOHWRSURWVLQWKHUHVSHFWLYHFRXQWULHV 105.0 88.6

Additional local taxes in foreign jurisdictions 8.9 11.7
Tax holidays in foreign jurisdictions 0.7 (1.5)
Expenses non-deductible for tax purposes 14.9 14.1
Income not subject to tax (12.5) (28.3)
Changes in tax laws and rates (2.3) (10.1)

Financial Statements
0RYHPHQWLQXWLOLVDWLRQRIDFFXPXODWHGWD[ORVVHV (2.3) 3.7
Recognition of previously unrecognised post-acquisition tax losses 1.5 (2.6)
Other (0.1) 0.8
Income tax expense 113.8 76.4

Non-deductible expenses for tax purposes include marketing and advertising expenses, service fees, bad debt provisions, entertainment
H[SHQVHVFHUWDLQHPSOR\HHEHQHWVDQGVWRFNRSWLRQVH[SHQVHVDQGRWKHULWHPVWKDWSDUWLDOO\RULQIXOODUHQRWGHGXFWLEOHIRUWD[SXUSRVHVLQ
certain of our jurisdictions.
'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVSUHVHQWHGLQWKHFRQVROLGDWHGEDODQFHVKHHWDVDW'HFHPEHUFDQEHIXUWKHUDQDO\VHGDVIROORZV
2016 2015
Deferred tax assets: million PLOOLRQ

Swiss Statutory Reporting

To be recovered after more than 12 months 48.0 59.2
To be recovered within 12 months 86.0 79.7
Gross deferred tax assets 134.0 138.9
2VHWRIGHIHUUHGWD[ (76.5) (82.6)
Net deferred tax assets 57.5 56.3

Deferred tax liabilities:

To be recovered after more than 12 months (181.9) (197.6)
To be recovered within 12 months (18.7) (17.0)
Gross deferred tax liabilities (200.6) (214.6)
2VHWRIGHIHUUHGWD[ 76.5 82.6
Supplementary Information

Net deferred tax liabilities (124.1) (132.0)

$UHFRQFLOLDWLRQRIQHWGHIHUUHGWD[LVSUHVHQWHGEHORZ
2016 2015
million PLOOLRQ
As at 1 January (75.7) (97.4)
Taken to the income statement 2.6 16.8
Taken to other comprehensive income 8.1 2.6
Foreign currency translation (1.6) 2.3
As at 31 December (66.6) (75.7)

COC016_.indb 129 3/16/17 2:36 PM

 Coca-Cola HBC
130 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

10. Taxation continued

7KHPRYHPHQWVLQGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVGXULQJWKH\HDUZLWKRXWWDNLQJLQWRFRQVLGHUDWLRQWKHRVHWWLQJRIEDODQFHVSXUVXDQWWR
VHWRSURYLVLRQVDUHDVIROORZV
Book in Other
Pensions and Tax losses excess of tax deferred
Provisions EHQHWSODQV carry-forward depreciation Leasing tax assets Total
Deferred tax assets PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ million
As at 1 January 2015 45.8 27.1 34.8 7.5 13.4 22.6 151.2
Taken to the income statement (0.2) 1.7 (9.0) 0.3 (0.6) 0.6 (7.2)
Taken to other comprehensive income (2.3) 2.4 0.1
Transfers between assets/liabilities 3.1 0.5 (3.1) 0.5
Foreign currency translation (2.4) (1.4) (0.7) (1.2) (5.7)
As at 31 December 2015 46.3 27.0 24.4 7.8 12.1 21.3 138.9
Taken to the income statement 7.7 (6.0) (9.1) 0.3 (3.3) 3.2 (7.2)
Taken to other comprehensive income 0.3 6.0 0.3 6.6
Transfers between assets/liabilities 6.0 (1.0) 0.2 (6.0) (0.8)
Foreign currency translation 3.2 (3.9) 1.4 (0.2) (4.0) (3.5)
As at 31 December 2016 63.5 22.1 16.7 8.3 8.6 14.8 134.0

Tax in excess Other deferred

of book Derivative tax
depreciation instruments liabilities Total
Deferred tax liabilities PLOOLRQ PLOOLRQ PLOOLRQ million
As at 1 January 2015 (238.2) (3.1) (7.3) (248.6)
Taken to the income statement 26.1 (2.1) 24.0
Taken to other comprehensive income 3.3 (0.8) 2.5
Transfers between assets/liabilities (0.5) (0.5)
Foreign currency translation 8.3 (0.3) 8.0
As at 31 December 2015 (203.8) (1.9) (8.9) (214.6)
Taken to the income statement 13.6 (1.5) (2.3) 9.8
Taken to other comprehensive income 1.5 1.5
Transfers between assets/liabilities (0.2) 1.0 0.8
Foreign currency translation 2.0 (0.1) 1.9
As at 31 December 2016 (188.4) (1.9) (10.3) (200.6)

Deferred tax assets recognised for tax losses carry-forward in accordance with the relevant local rules applying in our jurisdictions can be
DQDO\VHGDVIROORZV
2016 2015
million PLOOLRQ
$WWULEXWDEOHWRWD[ORVVHVWKDWH[SLUHZLWKLQYH\HDUV 9.8 15.6
$WWULEXWDEOHWRWD[ORVVHVWKDWH[SLUHDIWHUYH\HDUV 5.0
$WWULEXWDEOHWRWD[ORVVHVWKDWFDQEHFDUULHGIRUZDUGLQGHQLWHO\ 6.9 3.8
Recognised deferred tax assets attributable to tax losses 16.7 24.4

The Group has unrecognised deferred tax assets attributable to tax losses that are available to carry forward against future taxable income of
PPZKLFKDUHDQDO\VHGDVIROORZV
2016 2015
million PLOOLRQ
$WWULEXWDEOHWRWD[ORVVHVWKDWH[SLUHZLWKLQYH\HDUV 12.3 12.1
$WWULEXWDEOHWRWD[ORVVHVWKDWH[SLUHDIWHUYH\HDUV 0.7 3.5
Unrecognised deferred tax assets attributable to tax losses 13.0 15.6

7KHDJJUHJDWHDPRXQWRIGLVWULEXWDEOHUHVHUYHVDULVLQJIURPWKHUHDOLVHGHDUQLQJVRIWKH*URXSVRSHUDWLRQVZDVPLQ
P1RGHIHUUHGWD[OLDELOLWLHVKDYHEHHQUHFRJQLVHGRQVXFKUHVHUYHVJLYHQWKDWWKHLUGLVWULEXWLRQLVFRQWUROOHGE\WKH*URXSRU
in the event of plans to remit overseas earnings of subsidiaries, such distribution would not give rise to a tax liability.

COC016_.indb 130 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 131

Strategic Report
11. Earnings per share
Accounting policy
%DVLFHDUQLQJVSHUVKDUHLVFDOFXODWHGE\GLYLGLQJWKHQHWSURWDWWULEXWDEOHWRWKHRZQHUVRIWKHSDUHQWE\WKHZHLJKWHGDYHUDJHQXPEHURI
ordinary shares outstanding during the year. The weighted average number of ordinary shares outstanding during the year is the number
of ordinary shares outstanding at the beginning of the year, adjusted by the number of ordinary shares bought back or issued during the
year multiplied by a time-weighting factor. Diluted earnings per share incorporates stock options for which the average share price for the

Corporate Governance
\HDULVLQH[FHVVRIWKHH[HUFLVHSULFHRIWKHVWRFNRSWLRQDQGWKHUHLVDGLOXWLYHHHFW

7KHFDOFXODWLRQRIWKHEDVLFDQGGLOXWHGHDUQLQJVSHUVKDUHDWWULEXWDEOHWRWKHRZQHUVRIWKHSDUHQWHQWLW\LVEDVHGRQWKHIROORZLQJGDWD
2016 2015
1HWSURWDWWULEXWDEOHWRWKHRZQHUVRIWKHSDUHQWPLOOLRQ 343.5 280.3
Weighted average number of ordinary shares for the purposes of basic earnings per share (million) 362.1 363.7
(HFWRIGLOXWLYHVWRFNRSWLRQVPLOOLRQ 1.4 1.5
Weighted average number of ordinary shares for the purposes of diluted earnings per share (million) 363.5 365.2
Basic and diluted earnings per share () 0.95 0.77

2XWVWDQGLQJVWRFNRSWLRQVWKDWKDYHDQDQWLGLOXWLYHHHFWDQGWKHUHIRUHZHUHH[FOXGHGIURPGLOXWHGHDUQLQJVSHUVKDUHLQZHUHP

Financial Statements
P

12. Components of other comprehensive income

7KHFRPSRQHQWVRIRWKHUFRPSUHKHQVLYHLQFRPHIRUWKH\HDUVHQGHG'HFHPEHUFRPSULVH
2016 2015
Tax
Tax (expense)/
%HIRUHWD[ income 1HWRIWD[ Before-tax income Net-of-tax
million million million PLOOLRQ PLOOLRQ PLOOLRQ
$YDLODEOHIRUVDOHQDQFLDODVVHWV (0.1) (0.1) 0.1 (0.1)
&DVKRZKHGJHV (31.3) 1.1 (30.2) (20.3) 5.6 (14.7)

Swiss Statutory Reporting

Foreign currency translation (112.9) (112.9) (65.8) (65.8)
Actuarial (losses) / gains (41.7) 7.0 (34.7) 11.1 (2.9) 8.2
Share of other comprehensive income
of equity method investments (7.5) (7.5) (0.2) (0.2)
Other comprehensive income (193.5) 8.1 (185.4) (75.1) 2.6 (72.5)

The majority of foreign currency translation impact for 2016 is related to the Nigerian naira and the Russian rouble, while the majority of the
impact for 2015 related to the Russian rouble and the Swiss franc. Supplementary Information

COC016_.indb 131 3/16/17 2:36 PM

 Coca-Cola HBC
132 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

13. Intangible assets

Accounting policy
,QWDQJLEOHDVVHWVFRQVLVWRIJRRGZLOOIUDQFKLVHDJUHHPHQWVWUDGHPDUNVDQGZDWHUULJKWV*RRGZLOODQGRWKHULQGHQLWHOLYHGLQWDQJLEOH
DVVHWVDUHFDUULHGDWFRVWOHVVDFFXPXODWHGLPSDLUPHQWORVVHVZKLOHLQWDQJLEOHDVVHWVZLWKQLWHOLYHVDUHDPRUWLVHGRYHUWKHLUXVHIXO
HFRQRPLFOLYHV7KHXVHIXOOLYHVERWKQLWHDQGLQGHQLWHDVVLJQHGWRLQWDQJLEOHDVVHWVDUHHYDOXDWHGRQDQDQQXDOEDVLV

,QWDQJLEOHDVVHWVZLWKLQGHQLWHOLYHVQRWVXEMHFWWRDPRUWLVDWLRQb
Intangible assets not subject to amortisation consist of goodwill, franchise agreements and trademarks.
Goodwill is the excess of the consideration transferred over the fair value of the share of net assets acquired. Goodwill and fair value
adjustments arising on the acquisition of subsidiaries are treated as the assets and liabilities of those subsidiaries. These balances are
denominated in the functional currency of the subsidiary and are translated to Euro on a basis consistent with the other assets and
liabilities of the subsidiary.
The useful life of franchise agreements is usually based on the term of the respective franchise agreements. The Coca-Cola Company
does not grant perpetual franchise rights outside the United States. However, the Group believes its franchise agreements, consistent with
SDVWH[SHULHQFHZLOOFRQWLQXHWREHUHQHZHGDWHDFKH[SLUDWLRQGDWHDQGKDYHWKHUHIRUHEHHQDVVLJQHGLQGHQLWHXVHIXOOLYHV
7KH*URXSVWUDGHPDUNVDUHDVVLJQHGDQLQGHQLWHXVHIXOOLIHZKHQWKH\KDYHDQHVWDEOLVKHGVDOHVKLVWRU\LQWKHDSSOLFDEOHUHJLRQLWLVWKH
LQWHQWLRQRIWKH*URXSWRUHFHLYHDEHQHWIURPWKHPLQGHQLWHO\DQGWKHUHLVQRLQGLFDWLRQWKDWWKLVZLOOQRWEHWKHFDVH
*RRGZLOODQGRWKHULQGHQLWHOLYHGLQWDQJLEOHDVVHWVDUHWHVWHGIRULPSDLUPHQWDQQXDOO\DQGZKHQHYHUWKHUHLVDQLQGLFDWLRQRILPSDLUPHQW
)RUWKHSXUSRVHRILPSDLUPHQWWHVWLQJJRRGZLOOLVDOORFDWHGWRHDFKRIWKH*URXSVFDVKJHQHUDWLQJXQLWVH[SHFWHGWREHQHW
IURPbWKHEXVLQHVVFRPELQDWLRQLQZKLFKWKHJRRGZLOODURVH2WKHULQGHQLWHOLYHGLQWDQJLEOHDVVHWVDUHDOVRDOORFDWHGWRWKH*URXSV
FDVKJHQHUDWLQJXQLWVH[SHFWHGWREHQHWIURPWKRVHLQWDQJLEOHV7KHFDVKJHQHUDWLQJXQLWVXQLWWRZKLFKJRRGZLOODQGRWKHU
LQGHQLWHOLYHGLQWDQJLEOHDVVHWVKDYHEHHQDOORFDWHGDUHWHVWHGIRULPSDLUPHQWDQQXDOO\RUPRUHIUHTXHQWO\ZKHQWKHUHLVDQLQGLFDWLRQ
that the unit may be impaired. If the recoverable amount (i.e. the higher of the value-in-use and fair value less costs to sell) of the
FDVKJHQHUDWLQJXQLWLVOHVVWKDQWKHFDUU\LQJDPRXQWRIWKHXQLWWKHLPSDLUPHQWORVVLVDOORFDWHGUVWWRUHGXFHWKHFDUU\LQJDPRXQW
RIbDQ\JRRGZLOODOORFDWHGWRWKHXQLWDQGWKHQSURUDWDWRWKHRWKHUDVVHWVRIWKHXQLWRQWKHEDVLVRIWKHFDUU\LQJDPRXQWRIHDFKDVVHW
LQbWKHXQLW,PSDLUPHQWORVVHVUHFRJQLVHGDJDLQVWJRRGZLOODUHQRWUHYHUVHGLQVXEVHTXHQWSHULRGV

,QWDQJLEOHDVVHWVZLWKQLWHOLYHV
,QWDQJLEOHDVVHWVZLWKQLWHOLYHVPDLQO\FRQVLVWRIZDWHUULJKWVDQGDUHDPRUWLVHGRYHUWKHLUXVHIXOHFRQRPLFOLYHVDQGDUHFDUULHGDWFRVW
less accumulated amortisation and impairment losses.

Critical accounting estimates

'HWHUPLQLQJZKHWKHUJRRGZLOORULQGHQLWHOLYHGLQWDQJLEOHDVVHWVDUHLPSDLUHGUHTXLUHVDQHVWLPDWLRQRIWKHYDOXHLQXVHRIWKH
cash-generating units to which they have been allocated in order to determine the recoverable amount of the cash-generating units.
7KHYDOXHLQXVHFDOFXODWLRQUHTXLUHVWKH*URXSWRHVWLPDWHWKHIXWXUHFDVKRZVH[SHFWHGWRDULVHIURPWKHFDVKJHQHUDWLQJXQLW
DQGbDbVXLWDEOHGLVFRXQWUDWHLQRUGHUWRFDOFXODWHSUHVHQWYDOXH

COC016_.indb 132 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 133

Strategic Report
7KHPRYHPHQWVLQLQWDQJLEOHDVVHWVE\FODVVHVRIDVVHWVGXULQJWKH\HDUDUHDVIROORZV
Franchise Other intangible
Goodwill agreements Trademarks assets Total
PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ million
Cost
As at 1 January 2015 1,847.8 156.8 63.3 26.3 2,094.2
Foreign currency translation 34.8 (1.1) (6.4) (0.1) 27.2
As at 31 December 2015 1,882.6 155.7 56.9 26.2 2,121.4

Corporate Governance
Amortisation
As at 1 January 2015 182.4 8.9 18.1 209.4
Charge for the year 0.4 0.4
As at 31 December 2015 182.4 8.9 18.5 209.8
Net book value as at 1 January 2015 1,665.4 156.8 54.4 8.2 1,884.8
Net book value as at 31 December 2015 1,700.2 155.7 48.0 7.7 1,911.6
Cost
As at 1 January 2016 1,882.6 155.7 56.9 26.2 2,121.4
Intangible assets arising on current year acquisitions
(refer to Note 22) 3.2 7.8 8.8 19.8

Financial Statements
5HFODVVLHGWRDVVHWVKHOGIRUVDOHUHIHUWR1RWH (7.8) (8.8) (16.6)
Foreign currency translation (31.5) (6.3) 9.0 0.1 (28.7)
As at 31 December 2016 1,854.3 149.4 65.9 26.3 2,095.9
Amortisation
As at 1 January 2016 182.4 8.9 18.5 209.8
Charge for the year 0.4 0.4
As at 31 December 2016 182.4 8.9 18.9 210.2
Net book value as at 1 January 2016 1,700.2 155.7 48.0 7.7 1,911.6
Net book value as at 31 December 2016 1,671.9 149.4 57.0 7.4 1,885.7

,QWDQJLEOHDVVHWVQRWVXEMHFWWRDPRUWLVDWLRQDPRXQWHGWRPPDQGDUHSUHVHQWHGLQWKHFKDUWEHORZ

Swiss Statutory Reporting

2016 2015
1,878.3m 1,903.8m

Goodwill: 1,671.9m Goodwill: 1,700.2m

Franchise agreements: 149.4m Franchise agreements: 155.7m
Supplementary Information

Trademarks: 57.0m Trademarks: 47.9m

7KHFDUU\LQJYDOXHRILQWDQJLEOHDVVHWVVXEMHFWWRDPRUWLVDWLRQDPRXQWHGWRPPDQGFRPSULVHSULPDULO\ZDWHUULJKWVb

COC016_.indb 133 3/16/17 2:36 PM

 Coca-Cola HBC
134 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

13. Intangible assets continued

,PSDLUPHQWWHVWVIRUJRRGZLOODQGRWKHULQGHQLWHOLYHGLQWDQJLEOHDVVHWV
7KHUHFRYHUDEOHDPRXQWRIHDFKFDVKJHQHUDWLQJXQLWZDVGHWHUPLQHGWKURXJKDYDOXHLQXVHFDOFXODWLRQ7KDWFDOFXODWLRQXVHVFDVKRZ
SURMHFWLRQVEDVHGRQQDQFLDOEXGJHWVDSSURYHGE\WKH%RDUGRI'LUHFWRUVFRYHULQJDRQH\HDUSHULRGDQGFDVKSURMHFWLRQVIRUIRXUDGGLWLRQDO
\HDUV&DVKRZVIRU\HDUVWZRWRYHZHUHSURMHFWHGE\PDQDJHPHQWEDVHGRQRSHUDWLRQDQGPDUNHWVSHFLFKLJKOHYHODVVXPSWLRQV
LQFOXGLQJJURZWKUDWHVGLVFRXQWUDWHVDQGIRUHFDVWHGVHOOLQJSULFHVDQGGLUHFWFRVWV0DQDJHPHQWGHWHUPLQHGJURVVPDUJLQVEDVHGRQ
past performance, expectations for the development of the market and expectations about raw material costs. The growth rates used
LQSHUSHWXLW\UHHFWWKHIRUHFDVWVLQOLQHZLWKPDQDJHPHQWEHOLHIV7KHVHIRUHFDVWVH[FHHGHGLQFHUWDLQFDVHVWKRVHH[SHFWHGIRUWKH
LQGXVWU\LQJHQHUDOGXHWRWKHVWUHQJWKRIRXUEUDQGSRUWIROLR0DQDJHPHQWHVWLPDWHVGLVFRXQWUDWHVXVLQJUDWHVWKDWUHHFWFXUUHQWPDUNHW
DVVHVVPHQWVRIWKHWLPHYDOXHRIPRQH\DQGULVNVVSHFLFWRWKHFRXQWULHVRIRSHUDWLRQ
1RLPSDLUPHQWRIJRRGZLOODQGRWKHULQGHQLWHOLYHGDVVHWVZDVLQGLFDWHGIURPWKHLPSDLUPHQWWHVWVRIDQG
7KHIROORZLQJWDEOHVHWVIRUWKWKHFDUU\LQJYDOXHRIJRRGZLOODQGRWKHULQGHQLWHOLYHGLQWDQJLEOHDVVHWVIRUWKRVHFDVKJHQHUDWLQJXQLWVZKRVH
FDUU\LQJYDOXHLVJUHDWHUWKDQRIWKHWRWDODVDW'HFHPEHU
Franchise
Goodwill agreements Trademarks Total
PLOOLRQ PLOOLRQ PLOOLRQ million
Italy 625.2 126.9 752.1
Switzerland 430.2 430.2
The Republic of Ireland and Northern Ireland 250.4 250.4
All other cash-generating units 366.1 22.5 57.0 445.6
Total 1,671.9 149.4 57.0 1,878.3

)RUWKHDERYHFDVKJHQHUDWLQJXQLWVFDVKRZVEH\RQGWKHYH\HDUSHULRGWKHSHULRGLQSHUSHWXLW\KDYHEHHQH[WUDSRODWHGXVLQJWKH

IROORZLQJHVWLPDWHGJURZWKDQGGLVFRXQWUDWHV

Intangible assets not subject to Growth rate in perpetuity Discount rate

amortisation as at 31 December 2016 (%) (%) (%)
2016 2015 2016 2015
Italy 2.5 2.5 6.5 5.9
Italy: 40%
Switzerland: 23% Switzerland 1.5 0.6 6.7 6.1
The Republic of Ireland and The Republic of Ireland and
Northern Ireland: 13% Northern Ireland 3.1 2.2 6.8 6.1
Other: 24%

COC016_.indb 134 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 135

Strategic Report
Sensitivity analysis
,QWKHFDVKJHQHUDWLQJXQLWVRIWKH0XOWRQ=$2*URXSRIFRPSDQLHVDQG1LJHULDSRVVLEOHFKDQJHVLQFHUWDLQNH\DVVXPSWLRQVRIWKH
LPSDLUPHQWWHVWZRXOGUHPRYHWKHUHPDLQLQJKHDGURRP,QWKHMRLQWRSHUDWLRQRIWKH0XOWRQ=$2*URXSRIFRPSDQLHVZKLFKKDVP
JRRGZLOOWKHUHFRYHUDEOHDPRXQWFDOFXODWHGEDVHGRQYDOXHLQXVHH[FHHGHGFDUU\LQJYDOXHE\P,Q1LJHULDZKLFKKDVPRI
JRRGZLOODQGIUDQFKLVHDJUHHPHQWVWKHUHFRYHUDEOHDPRXQWFDOFXODWHGEDVHGRQYDOXHLQXVHH[FHHGHGFDUU\LQJYDOXHE\P&KDQJHV
SHUDVVXPSWLRQWKDWZRXOGHOLPLQDWHUHPDLQLQJKHDGURRPDUHVXPPDULVHGLQWKHWDEOHEHORZ
Average gross Growth rate in Discount

Corporate Governance
SURWPDUJLQ perpetuity rate

0XOWRQ=$2*URXSRIFRPSDQLHV   

Nigeria   

14. Property, plant and equipment

Accounting policy
All property, plant and equipment is initially recorded at cost and subsequently measured at cost less accumulated depreciation and
LPSDLUPHQWORVVHV6XEVHTXHQWH[SHQGLWXUHLVDGGHGWRWKHFDUU\LQJYDOXHRIWKHDVVHWZKHQLWLVSUREDEOHWKDWIXWXUHHFRQRPLFEHQHWV
LQH[FHVVRIWKHRULJLQDODVVHVVHGVWDQGDUGRISHUIRUPDQFHRIWKHH[LVWLQJDVVHWZLOORZWRWKHRSHUDWLRQDQGWKHFRVWVFDQEHPHDVXUHG

Financial Statements
reliably. All other subsequent expenditure is expensed in the period in which it is incurred.
Assets under construction are recorded as part of property, plant and equipment and depreciation on these assets commences when the
assets are available for use.
The Coca-Cola Company, at its sole discretion, provides the Group with contributions towards the purchase of cold drink equipment.
Payments are made on placement of coolers and are based on franchise incentive arrangements. The terms and conditions of these
arrangements require reimbursement if certain conditions stipulated in the agreements are not met, including minimum volume
through-put requirements. Support payments received from The Coca-Cola Company for the placement of cold drink equipment
DUHbGHGXFWHGIURPWKHFRVWRIWKHUHODWHGDVVHW
'HSUHFLDWLRQLVFDOFXODWHGRQDVWUDLJKWOLQHEDVLVWRDOORFDWHWKHGHSUHFLDEOHDPRXQWRYHUWKHHVWLPDWHGXVHIXOOLIHRIWKHDVVHWVDVIROORZV

Freehold buildings and improvements 40 years

Swiss Statutory Reporting

Leasehold buildings and improvements Over the lease term, up to 40 years
Production equipment 4 to 20 years
Vehicles 5 to 8 years
Computer hardware and software 3 to 10 years
0DUNHWLQJHTXLSPHQW 3 to 10 years
)L[WXUHVDQGWWLQJV 8 years
Returnable containers 3 to 12 years

)UHHKROGODQGLVQRWGHSUHFLDWHGDVLWLVFRQVLGHUHGWRKDYHDQLQGHQLWHOLIH
Deposits received for returnable containers by customers are accounted for as deposit liabilities (refer to Note 19).
Residual values and useful lives of assets are reviewed and adjusted if appropriate at each balance sheet date.
Supplementary Information

3URSHUW\SODQWDQGHTXLSPHQWDQGRWKHUQRQQDQFLDODVVHWVWKDWDUHVXEMHFWWRGHSUHFLDWLRQDUHUHYLHZHGIRULPSDLUPHQWZKHQHYHU
events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the
amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the assets fair value less cost
WRVHOODQGLWVYDOXHLQXVH)RUWKHSXUSRVHVRIDVVHVVLQJLPSDLUPHQWDVVHWVDUHJURXSHGDWWKHORZHVWOHYHORIVHSDUDWHO\LGHQWLDEOH
FDVKRZV

COC016_.indb 135 3/16/17 2:36 PM

 Coca-Cola HBC
136 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

14. Property, plant and equipment continued

7KHPRYHPHQWVRISURSHUW\SODQWDQGHTXLSPHQWE\FODVVRIDVVHWVDUHDVIROORZV
Land and Plant and Returnable Assets under
buildings equipment containers construction Total
PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ million
Cost
As at 1 January 2015 1,406.4 3,668.5 414.7 113.7 5,603.3
Additions 3.8 110.7 47.1 205.8 367.4
Disposals (5.7) (130.9) (28.1) (164.7)
5HFODVVLHGIURPDVVHWVKHOGIRUVDOHUHIHUWR1RWH 0.9 0.9
5HFODVVLHGWRDVVHWVKHOGIRUVDOHUHIHUWR1RWH (11.2) (12.6) (23.8)
5HFODVVLFDWLRQV 76.6 149.3 0.5 (226.4)
Foreign currency translation (28.3) (114.9) (6.5) (6.1) (155.8)
As at 31 December 2015 1,441.6 3,671.0 427.7 87.0 5,627.3
Depreciation and impairment
As at 1 January 2015 394.5 2,398.3 186.1 0.3 2,979.2
Charge for the year 40.8 232.9 34.4 308.1
Impairment 7.1 21.9 3.1 32.1
Disposals (5.6) (128.3) (15.8) (149.7)
5HFODVVLHGWRDVVHWVKHOGIRUVDOHUHIHUWR1RWH (6.6) (11.8) (18.4)
Foreign currency translation (6.3) (61.6) (1.6) (69.5)
As at 31 December 2015 423.9 2,451.4 206.2 0.3 3,081.8
Net book value as at 31 December 2015 1,017.7 1,219.6 221.5 86.7 2,545.5
Cost
As at 1 January 2016 1,441.6 3,671.0 427.7 87.0 5,627.3
Additions 4.1 119.5 43.0 173.1 339.7
Arising on acquisitions (refer to Note 22) 1.5 1.3 2.8
Disposals (25.0) (210.0) (14.2) (0.1) (249.3)
5HFODVVLHGIURPDVVHWVKHOGIRUVDOHUHIHUWR1RWH 10.4 3.0 13.4
5HFODVVLHGWRDVVHWVKHOGIRUVDOHUHIHUWR1RWH (48.5) (3.0) (51.5)
5HFODVVLFDWLRQV 43.0 102.0 (145.0)
Foreign currency translation (20.5) (61.7) (62.4) (12.6) (157.2)
As at 31 December 2016 1,406.6 3,622.1 394.1 102.4 5,525.2
Depreciation and impairment
As at 1 January 2016 423.9 2,451.4 206.2 0.3 3,081.8
Charge for the year 39.5 229.5 36.5 305.5
Impairment 13.8 10.8 1.7 0.6 26.9
Disposals (9.5) (202.9) (11.7) (224.1)
5HFODVVLHGIURPDVVHWVKHOGIRUVDOHUHIHUWR1RWH 6.3 2.8 9.1
5HFODVVLHGWRDVVHWVKHOGIRUVDOHUHIHUWR1RWH (34.3) (2.8) (37.1)
Foreign currency translation 0.8 (22.6) (21.7) (43.5)
As at 31 December 2016 440.5 2,466.2 211.0 0.9 3,118.6
Net book value as at 31 December 2016 966.1 1,155.9 183.1 101.5 2,406.6

$VVHWVXQGHUFRQVWUXFWLRQDW'HFHPEHULQFOXGHDGYDQFHVIRUHTXLSPHQWSXUFKDVHVRIPP'HSUHFLDWLRQFKDUJH

IRUWKH\HDULQFOXGHGLQRSHUDWLQJH[SHQVHVDPRXQWHGWRPP'HSUHFLDWLRQFKDUJHIRUWKH\HDULQFOXGHGLQFRVWRI
JRRGVVROGDPRXQWHGWRPP

COC016_.indb 136 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 137

Strategic Report
Impairment of property, plant and equipment
,QWKH*URXSUHFRUGHGDQLPSDLUPHQWORVVRIPPDQGPDQGUHFRUGHGUHYHUVDOVRILPSDLUPHQWRIPPDQG
PUHODWLQJWRSURSHUW\SODQWDQGHTXLSPHQWLQWKH(VWDEOLVKHG'HYHORSLQJDQG(PHUJLQJVHJPHQWVUHVSHFWLYHO\7KLVUHVXOWHGLQDQHW
LPSDLUPHQWORVVRIPPDQGPLQWKH(VWDEOLVKHG'HYHORSLQJDQG(PHUJLQJVHJPHQWVUHVSHFWLYHO\,PSDLUPHQWUHFRUGHG
mainly relates to restructuring initiatives (refer also to Note 8). The impaired assets, being mainly land and buildings and production equipment,
ZHUHZULWWHQREDVHGRQYDOXHLQXVHFDOFXODWLRQVZKLOHDVVHWVZLWKDUHFRYHUDEOHDPRXQWRIPZHUHYDOXHGDWIDLUYDOXHOHVVFRVWWR
sell, which is considered a Level 3 measurement.

Corporate Governance
,QWKH*URXSUHFRUGHGDQLPSDLUPHQWORVVRIPPDQGPDQGUHFRUGHGUHYHUVDOVRILPSDLUPHQWRIPQLODQG
PUHODWLQJWRSURSHUW\SODQWDQGHTXLSPHQWLQWKH(VWDEOLVKHG'HYHORSLQJDQG(PHUJLQJVHJPHQWVUHVSHFWLYHO\7KLVUHVXOWHGLQDQHW
LPSDLUPHQWORVVRIPPDQGPLQWKH(VWDEOLVKHG'HYHORSLQJDQG(PHUJLQJVHJPHQWVUHVSHFWLYHO\,PSDLUPHQWUHFRUGHG
mainly relates to restructuring initiatives (refer also to Note 8). The impaired assets, being mainly buildings and production equipment, were
ZULWWHQREDVHGRQYDOXHLQXVHFDOFXODWLRQV

Leased assets

Accounting policy
/HDVHVRISURSHUW\SODQWDQGHTXLSPHQWZKHUHWKH*URXSKDVVXEVWDQWLDOO\DOOWKHULVNVDQGUHZDUGVRIRZQHUVKLSDUHFODVVLHGDV
QDQFHOHDVHV

Financial Statements
Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased assets and the present value of the
PLQLPXPOHDVHSD\PHQWV(DFKOHDVHSD\PHQWLVDOORFDWHGEHWZHHQOLDELOLW\DQGQDQFHFKDUJHVWRDFKLHYHDFRQVWDQWUDWHRQWKHQDQFH
EDODQFHRXWVWDQGLQJ7KHFRUUHVSRQGLQJOHDVHREOLJDWLRQVQHWRIQDQFHFKDUJHVDUHLQFOXGHGLQFXUUHQWDQGQRQFXUUHQWERUURZLQJV
7KHbLQWHUHVWHOHPHQWRIWKHQDQFHFRVWLVFKDUJHGWRWKHLQFRPHVWDWHPHQWRYHUWKHOHDVHSHULRGVRDVWRSURGXFHDFRQVWDQWSHULRGLF
rate of interest on the remaining balance of the liability for each period (refer to Note 24). Property, plant and equipment acquired under
QDQFHOHDVHLVGHSUHFLDWHGRYHUWKHVKRUWHURIWKHXVHIXOOLIHRIWKHDVVHWDQGWKHOHDVHWHUP7KHXVHIXOOLIHIRUOHDVHGDVVHWVFRUUHVSRQGV
with the Group policy for the depreciable life of property, plant and equipment.

,QFOXGHGLQSURSHUW\SODQWDQGHTXLSPHQWDUHDVVHWVKHOGXQGHUQDQFHOHDVHVZKHUHWKH*URXSLVWKHOHVVHHDVIROORZV
2016 2015
million PLOOLRQ

Swiss Statutory Reporting

Cost 184.9 202.2
Accumulated depreciation (82.4) (85.6)
Net book value 102.5 116.6

1HWERRNYDOXHRIDVVHWVKHOGXQGHUQDQFHOHDVHVE\FODVVHVRIDVVHWVLVDVIROORZV
Plant and equipment 67.4 78.6
Land and buildings 35.1 38.0
Net book value 102.5 116.6
Supplementary Information

COC016_.indb 137 3/16/17 2:36 PM

 Coca-Cola HBC
138 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

15. Interests in other entities

List of principal subsidiaries
7KHIROORZLQJDUHWKHSULQFLSDOVXEVLGLDULHVRIWKH*URXSDVDW'HFHPEHU
RIYRWLQJULJKWV RZQHUVKLS
Country of registration 2016 2015 2016 2015
AS Coca-Cola HBC Eesti Estonia    
&&%0DQDJHPHQW6HUYLFHV*PE+ Austria    
CCHBC Armenia CJSC Armenia    
CCHBC Bulgaria AD Bulgaria    
CCHBC Insurance (Guernsey) Limited Guernsey    
CCHBC IT Services Limited Bulgaria    
Coca-Cola HBC Austria GmbH Austria    
Coca-Cola Beverages Belorussiya Belarus    
Coca-Cola HBC Ceska republika, s.r.o. Czech Republic    
Coca-Cola Beverages Ukraine Ltd Ukraine    
Coca-Cola Bottlers Chisinau S.R.L. 0ROGRYD    
Coca-Cola HBC-Srbija d.o.o. Serbia    
Coca-Cola HBC B-H d.o.o. Sarajevo Bosnia and Herzegovina    
Coca-Cola HBC Finance B.V. The Netherlands    
Coca-Cola HBC Greece S.A.I.C. Greece    
Coca-Cola HBC Hrvatska d.o.o. Croatia    
Coca-Cola HBC Hungary Ltd Hungary    
Coca-Cola HBC Ireland Limited Republic of Ireland    
Coca-Cola HBC Italia S.r.l. Italy    
Coca-Cola HBC Kosovo L.L.C. Kosovo    
Coca-Cola HBC Northern Ireland Limited Northern Ireland    
Coca-Cola HBC Polska sp. z o.o. Poland    
Coca-Cola HBC Romania Ltd Romania    
Coca-Cola HBC Slovenija d.o.o. Slovenia    
Coca-Cola HBC Slovenska republika, s.r.o. Slovakia    
Coca-Cola HBC Switzerland Ltd Switzerland    
Coca-Cola Hellenic Bottling Company-Crna Gora d.o.o., Podgorica 0RQWHQHJUR    
Coca-Cola Hellenic Business Service Organisation Bulgaria    
Coca-Cola Hellenic Procurement GmbH Austria    
Lanitis Bros Ltd Cyprus    
LLC Coca-Cola HBC Eurasia Russia    
Nigerian Bottling Company Ltd Nigeria    
SIA Coca-Cola HBC Latvia Latvia    
UAB Coca-Cola HBC Lietuva Lithuania    
CC Beverages Holdings II B.V. The Netherlands    
Coca-Cola HBC Holdings B.V. The Netherlands    
Star Bottling Limited Cyprus    

COC016_.indb 138 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 139

Strategic Report
Associates and joint arrangements

Accounting policies
,QYHVWPHQWVLQDVVRFLDWHV
Investments in associated undertakings are accounted for by the equity method of accounting. Associated undertakings are all entities
RYHUZKLFKWKH*URXSKDVVLJQLFDQWLQXHQFHEXWQRWFRQWUROJHQHUDOO\DFFRPSDQ\LQJDVKDUHKROGLQJRIEHWZHHQWRRIWKH
voting rights.

Corporate Governance
7KHHTXLW\PHWKRGRIDFFRXQWLQJLQYROYHVUHFRJQLVLQJWKH*URXSVVKDUHRIWKHDVVRFLDWHVSRVWDFTXLVLWLRQSURWRUORVVIRUWKH
period in the income statement and its share of the post-acquisition movement in other comprehensive income is recognised in other
comprehensive income. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to
the extent of the interest in the associate.
7KH*URXSVLQWHUHVWLQHDFKDVVRFLDWHLVFDUULHGLQWKHEDODQFHVKHHWDWDQDPRXQWWKDWUHHFWVLWVVKDUHRIWKHQHWDVVHWVRIWKHDVVRFLDWH
and includes goodwill on acquisition. When the Groups share of losses in an associate equals or exceeds its interest in the associate, the
Group does not recognise further losses, unless the Group has incurred obligations or made payments on behalf of the associate.

,QYHVWPHQWVLQMRLQWDUUDQJHPHQWV
Joint arrangements are arrangements in which the Group has contractually agreed sharing of control, which exists only when decisions
DERXWWKHUHOHYDQWDFWLYLWLHVUHTXLUHXQDQLPRXVFRQVHQW-RLQWDUUDQJHPHQWVDUHFODVVLHGDVMRLQWYHQWXUHVRUMRLQWRSHUDWLRQVGHSHQGLQJ

Financial Statements
upon the rights and obligations arising from the joint arrangement.
7KH*URXSFODVVLHVDMRLQWDUUDQJHPHQWDVDMRLQWYHQWXUHZKHQWKH*URXSKDVULJKWVWRWKHQHWDVVHWVRIWKHDUUDQJHPHQW7KH*URXS
accounts for its interests in joint ventures using the equity method of accounting as described in the section above.
7KH*URXSFODVVLHVDMRLQWDUUDQJHPHQWDVDMRLQWRSHUDWLRQZKHQWKH*URXSKDVWKHULJKWVWRWKHDVVHWVDQGREOLJDWLRQVIRUWKHOLDELOLWLHV
of the arrangement and accounts for each of its assets, liabilities, revenues and expenses, including its share of those held or incurred
jointly, in relation to the joint operation.
If facts and circumstances change, the Group reassesses whether it still has joint control and whether the type of joint arrangement in
which it is involved has changed.

Critical accounting judgements

Swiss Statutory Reporting

7KH*URXSSDUWLFLSDWHVLQVHYHUDOMRLQWDUUDQJHPHQWV-XGJHPHQWLVUHTXLUHGLQRUGHUWRGHWHUPLQHWKHLUFODVVLFDWLRQDVDMRLQWYHQWXUH
where the Group has rights to the net assets of the arrangement, or a joint operation where the Group has rights to the assets and
obligations for the liabilities of the arrangement. In making this judgement, consideration is given to the legal form of the arrangement, and
the contractual terms and conditions, as well as other facts and circumstances (including the economic rationale of the arrangement and
the impact of the legal framework).

a) Equity method investments

&KDQJHVLQWKHFDUU\LQJDPRXQWVRIHTXLW\PHWKRGLQYHVWPHQWVDUHDVIROORZV
Joint
Associates ventures Total
PLOOLRQ PLOOLRQ million
Supplementary Information

As at 1 January 2015 20.6 206.9 227.5

Acquisitions 0.5 0.5
Share of results of equity method investments 4.6 2.5 7.1
Share of other comprehensive income of equity method investments (1.0) 0.8 (0.2)
Share of total comprehensive income 3.6 3.3 6.9
Dividends (1.5) (119.6) (121.1)
As at 31 December 2015 23.2 90.6 113.8
Capital increase 7.9 7.9
Additions (refer to Note 22) 7.1 7.1
Share of results of equity method investments 7.8 6.0 13.8
Share of other comprehensive income of equity method investments (7.4) (0.1) (7.5)
Share of total comprehensive income 0.4 5.9 6.3
Dividends (1.1) (17.0) (18.1)
As at 31 December 2016 22.5 94.5 117.0

COC016_.indb 139 3/16/17 2:36 PM

 Coca-Cola HBC
140 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

15. Interests in other entities continued

Included in investment in associates is the Groups investment in Frigoglass Industries Limited and Frigoglass West Africa Ltd. Nigerian
%RWWOLQJ&RPSDQ\/WGKROGVDQLQWHUHVWLQERWK)ULJRJODVV,QGXVWULHV/LPLWHGDQG)ULJRJODVV:HVW$IULFD/WGRI
7KHb*URXSKDVDLQWHUHVWLQ1LJHULD%RWWOLQJ&RPSDQ\/WGWKHUHIRUHWKH*URXSKDVDQHHFWLYHLQWHUHVWRILQ
ERWKb)ULJRJODVV,QGXVWULHV/LPLWHGDQG)ULJRJODVV:HVW$IULFD/WG

Investments in joint ventures

The Group has a material joint venture with Heineken that is conducted through a number of legal entities being the BrewTech B.V. Group of
FRPSDQLHVZKLFKLVHQJDJHGLQWKHERWWOLQJDQGGLVWULEXWLRQRIVRIWGULQNVDQGEHHULQ)<520DQGWKH%UHZLQYHVW6$*URXSRIFRPSDQLHV
ZKLFKKDVPLQLPDODFWLYLW\%UHZ7HFK%9LVLQFRUSRUDWHGLQWKH1HWKHUODQGVDQGWKH*URXSRZQVRILWVVKDUHFDSLWDO
Brewinvest S.A., parent company of Brewinvest S.A. Group of companies, which has minimal other activities, is incorporated in Greece and
WKHb*URXSRZQVRILWVVKDUHFDSLWDO7KHVWUXFWXUHRIWKHMRLQWYHQWXUHSURYLGHVWKH*URXSZLWKULJKWVWRWKHLUQHWDVVHWV
6XPPDULVHGQDQFLDOLQIRUPDWLRQRIWKH*URXSVPDWHULDOMRLQWYHQWXUHLVDVIROORZVWKHLQIRUPDWLRQEHORZUHHFWVWKHDPRXQWSUHVHQWHGLQ
WKH,)56QDQFLDOVWDWHPHQWVRIWKHMRLQWYHQWXUHDQGQRWWKH*URXSVVKDUHLQWKRVHDPRXQWV
2016 2015
million PLOOLRQ
Summarised balance sheet:
Cash and cash equivalents 31.1 29.5
Other current assets 16.8 7.3
Total current assets 47.9 36.8
Short-term borrowings (0.3)
Other current liabilities (including trade payables) (10.9) (10.5)
Total current liabilities (10.9) (10.8)
1RQFXUUHQWDVVHWV 46.9 80.4
7RWDOQRQFXUUHQWRWKHUOLDELOLWLHV (0.2) (0.4)
Net assets 83.7 106.0

Summarised statement of comprehensive income:

Net sales revenue 57.8 55.1
Depreciation and amortisation (4.7) (5.9)
Interest income 0.6 1.0
Interest expense (0.1) (0.2)
3URWEHIRUHWD[ 13.2 11.8
Tax (1.6) (1.4)
3URWDIWHUWD[ 11.6 10.4
Other comprehensive income (0.1)
Total comprehensive income 11.6 10.3
Dividends received (refer to Note 26d) 16.5 119.6

Reconciliation of net assets to carrying amount:

Closing net assets 83.7 106.0
,QWHUHVWLQMRLQWYHQWXUHDW 41.8 53.0
Goodwill 16.9 16.9
Non-controlling interest (1.7) (1.7)
Carrying value 57.0 68.2

COC016_.indb 140 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 141

Strategic Report
6XPPDULVHGQDQFLDOLQIRUPDWLRQRIWKH*URXSVLQYHVWPHQWLQRWKHUMRLQWYHQWXUHVLVDVIROORZV
2016 2015
million PLOOLRQ
Carrying amount 37.5 22.4
6KDUHRISURWORVV 0.2 (2.7)
Share of other comprehensive income (0.1) 0.8
Share of total comprehensive income 0.1 (1.9)

Corporate Governance
7KH*URXSVVKDUHRIORVVLQRWKHUMRLQWYHQWXUHVLQFOXGHVUHVWUXFWXULQJLQLWLDWLYHVZLWKLQMRLQWYHQWXUHVRIPP
At 31 December 2016, the Groups share of its joint ventures capital commitments and long-term commitments to purchase raw materials
DQGUHFHLYHVHUYLFHVDPRXQWHGWRPDQGQLOUHVSHFWLYHO\PDQGQLOUHVSHFWLYHO\

b) Joint operations
7KH*URXSKDVDLQWHUHVWLQWKH0XOWRQ=$2JURXSRIFRPSDQLHV0XOWRQ0XOWRQLVHQJDJHGLQWKHSURGXFWLRQDQGGLVWULEXWLRQRI
MXLFHVLQ5XVVLDDQGLVFODVVLHGDVDMRLQWRSHUDWLRQDVWKHDUUDQJHPHQWJLYHVWKH*URXSULJKWVWRWKHDVVHWVDQGREOLJDWLRQVIRUWKHOLDELOLWLHV
UHODWLQJWRWKHMRLQWDUUDQJHPHQW2WKHUMRLQWRSHUDWLRQVRIWKH*URXSFRPSULVHPDLQO\DLQWHUHVWLQHDFKRIVHYHUDOZDWHUEXVLQHVVHVDV
depicted below, which are engaged in the production and distribution of water in the respective countries.
Country Joint operation Country Joint operation

Financial Statements
Austria Rmerquelle Poland 0XOWLYLWD
Italy Fonti del Vulture Switzerland Valser
Romania Dorna Serbia Vlasinka

16. Inventories
Accounting policy
Inventories are stated at the lower of cost and net realisable value.
&RVWIRUUDZPDWHULDOVDQGFRQVXPDEOHVLVGHWHUPLQHGRQDZHLJKWHGDYHUDJHEDVLV&RVWIRUZRUNLQSURJUHVVDQGQLVKHGJRRGVLV
comprised of the cost of direct materials and labour plus attributable overhead costs. Cost includes all costs incurred to bring the product
to its present location and condition.

Swiss Statutory Reporting

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to complete and
sell the inventory.

,QYHQWRULHVFRQVLVWHGRIWKHIROORZLQJDW'HFHPEHU
2016 2015
million PLOOLRQ
Finished goods 199.8 194.8
Raw materials and work in progress 158.3 159.4
Consumables 73.4 81.6
Total inventories 431.5 435.8
Supplementary Information

7KHDPRXQWRILQYHQWRULHVUHFRJQLVHGDVDQH[SHQVHGXULQJZDVPP'XULQJSURYLVLRQRIREVROHWH

LQYHQWRULHVUHFRJQLVHGDVDQH[SHQVHDPRXQWHGWRPP

COC016_.indb 141 3/16/17 2:36 PM

 Coca-Cola HBC
142 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

17. Trade, other receivables and assets

Accounting policies
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost. A provision for doubtful debts is
established when there is objective evidence that the Group will not be able to collect all amounts due, according to the original terms
RIWKHWUDGHUHFHLYDEOH6LJQLFDQWQDQFLDOGLFXOWLHVRIWKHGHEWRUSUREDELOLW\WKDWWKHGHEWRUZLOOHQWHULQWREDQNUXSWF\RUQDQFLDO
reorganisation and default or delinquency in payments (over 90 days) are considered indicators that the trade receivable could be
XQFROOHFWLEOH7KHDPRXQWRIWKHSURYLVLRQLVWKHGLHUHQFHEHWZHHQWKHUHFHLYDEOHVFDUU\LQJDPRXQWDQGWKHSUHVHQWYDOXHRILWV
HVWLPDWHGIXWXUHFDVKRZVGLVFRXQWHGDWWKHRULJLQDOHHFWLYHLQWHUHVWUDWH7KHFDUU\LQJDPRXQWRIWKHUHFHLYDEOHLVUHGXFHGE\WKH
amount of the provision, which is recognised as part of operating expenses. If a trade receivable ultimately becomes uncollectible, it is
ZULWWHQRLQLWLDOO\DJDLQVWDQ\SURYLVLRQPDGHLQUHVSHFWRIWKDWUHFHLYDEOHZLWKDQ\H[FHVVUHFRJQLVHGDVSDUWRIRSHUDWLQJH[SHQVHV
6XEVHTXHQWUHFRYHULHVRIDPRXQWVSUHYLRXVO\ZULWWHQRRUSURYLVLRQVQRORQJHUUHTXLUHGDUHFUHGLWHGDJDLQVWRSHUDWLQJH[SHQVHV
Loans are initially recognised at the fair value net of transaction costs incurred.
After initial recognition, all interest-bearing loans are subsequently measured at amortised cost. Amortised cost is calculated using the
HHFWLYHLQWHUHVWUDWHPHWKRGZKHUHE\DQ\GLVFRXQWSUHPLXPRUWUDQVDFWLRQFRVWVDVVRFLDWHGZLWKDORDQbDUHbDPRUWLVHGWRWKHLQFRPH
statement over the borrowing period.

)LQDQFLDODVVHWV
7KH*URXSFODVVLHVLWVLQYHVWPHQWVLQGHEWDQGHTXLW\VHFXULWLHVLQWRWKHIROORZLQJFDWHJRULHVKHOGWRPDWXULW\DQGDYDLODEOHIRUVDOH
7KHFODVVLFDWLRQGHSHQGVRQWKHSXUSRVHIRUZKLFKWKHLQYHVWPHQWZDVDFTXLUHG,QYHVWPHQWVZLWKD[HGPDWXULW\WKDWPDQDJHPHQW
KDVWKHLQWHQWDQGDELOLW\WRKROGWRPDWXULW\DUHFODVVLHGDVKHOGWRPDWXULW\DQGDUHLQFOXGHGLQQRQFXUUHQWDVVHWVH[FHSWIRUWKRVH
ZLWKPDWXULWLHVZLWKLQPRQWKVIURPWKHEDODQFHVKHHWGDWHZKLFKDUHFODVVLHGDVFXUUHQWDVVHWV,QYHVWPHQWVLQWHQGHGWREH
KHOGIRUDQLQGHQLWHSHULRGRIWLPHZKLFKPD\EHVROGLQUHVSRQVHWRQHHGIRUOLTXLGLW\RUFKDQJHVLQLQWHUHVWUDWHVDUHFODVVLHGDV
DYDLODEOHIRUVDOHDQGDUHFODVVLHGDVQRQFXUUHQWDVVHWVXQOHVVWKH\DUHH[SHFWHGWREHUHDOLVHGZLWKLQPRQWKVRIWKHEDODQFHVKHHW
GDWH$YDLODEOHIRUVDOHQDQFLDODVVHWVDUHFDUULHGDWIDLUYDOXH+HOGWRPDWXULW\LQYHVWPHQWVDUHFDUULHGDWDPRUWLVHGFRVWXVLQJWKH
HHFWLYHLQWHUHVWUDWHPHWKRG
7KH*URXSGHUHFRJQLVHVDQDQFLDODVVHWZKHQWKHFRQWUDFWXDOULJKWVWRWKHFDVKRZVIURPWKHDVVHWH[SLUHRULWWUDQVIHUVWKHULJKWVWR
UHFHLYHWKHFRQWUDFWXDOFDVKRZVLQDWUDQVDFWLRQLQZKLFKVXEVWDQWLDOO\DOORIWKHULVNVDQGUHZDUGVRIRZQHUVKLSRIWKHQDQFLDODVVHWDUH
transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the
transferred asset. When the Group has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred
control of the asset, the Group continues to recognise the transferred asset to the extent of the Groups continuing involvement. In that
case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that
UHHFWVWKHULJKWVDQGREOLJDWLRQVWKDWWKH*URXSKDVUHWDLQHG
8QUHDOLVHGJDLQVDQGORVVHVRQDYDLODEOHIRUVDOHQDQFLDODVVHWVDUHUHFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPHH[FHSWIRULPSDLUPHQW
ORVVHVDQGIRUHLJQH[FKDQJHJDLQVDQGORVVHVRQPRQHWDU\QDQFLDODVVHWVWKDWDUHUHFRJQLVHGLQWKHLQFRPHVWDWHPHQWXQWLOWKH
QDQFLDODVVHWVDUHGHUHFRJQLVHGDWZKLFKWLPHWKHFXPXODWLYHJDLQVRUORVVHVSUHYLRXVO\UHFRJQLVHGLQHTXLW\DUHUHFODVVLHGWRWKH
income statement.
Gains and losses on held-to-maturity investments are recognised in the income statement, when the investments are derecognised
or impaired.

COC016_.indb 142 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 143

Strategic Report
7UDGHRWKHUUHFHLYDEOHVDQGDVVHWVFRQVLVWHGRIWKHIROORZLQJDVDW'HFHPEHU
Current assets 1RQFXUUHQWDVVHWV
2016 2015 2016 2015
million PLOOLRQ million PLOOLRQ
Trade and other receivables:
Trade receivables 727.6 664.0 2.2 5.1
Receivables from sale of property, plant and equipment 0.5 8.7

Corporate Governance
Receivables from related parties (refer to Note 26) 117.0 85.7
Loans to related parties (refer to Note 26) 5.2 8.0
Loans receivable 0.1 0.8 0.4 0.7
Non-current income tax receivable 8.4 8.2
VAT and other taxes receivable 35.5 25.3
Loans and advances to employees 5.7 6.4
Other receivables 63.2 44.3
Total trade and other receivables 954.8 843.2 11.0 14.0
Other assets:
Prepayments 76.0 66.3 13.2 12.4
Held-to-maturity investments 0.9 1.1

Financial Statements
Pension plan assets (refer to Note 20) 2.2
$YDLODEOHIRUVDOHQDQFLDODVVHWV 3.6 1.7
Total other assets 76.0 66.3 17.7 17.4
Total trade, other receivables and assets 1,030.8 909.5 28.7 31.4

Non-current trade receivables relate to re-negotiated receivables, which are expected to be settled within the new contractual due date.
7UDGHUHFHLYDEOHVFODVVLHGDVFXUUHQWDVVHWVFRQVLVWHGRIWKHIROORZLQJDW'HFHPEHU
2016 2015
million PLOOLRQ
Trade receivables 819.6 742.9
/HVV3URYLVLRQIRUGRXEWIXOGHEWV (92.0) (78.9)

Swiss Statutory Reporting

Total trade receivables 727.6 664.0

The credit period given to customers ranges from 7 days to 90 days depending on the country and customer type. In most territories, interest
LVQRWFKDUJHGIRUODWHSD\PHQW7KHUHDUHQRFXVWRPHUVZKRUHSUHVHQWPRUHWKDQRIWKHWRWDOEDODQFHRIWUDGHUHFHLYDEOHV
Before accepting any new credit customers, the Group investigates the potential customers credit quality (usually through external
DJHQWVDQGGHQHVFUHGLWOLPLWVIRUHDFKFXVWRPHUDQGRUKLVWRULFDOH[SHULHQFH&XVWRPHUVDUHUHYLHZHGRQDQRQJRLQJEDVLVDQGFUHGLW
OLPLWVDGMXVWHGDFFRUGLQJO\7KH*URXSVH[SRVXUHWRFUHGLWULVNLVPDQDJHGE\HVWDEOLVKHGSROLFLHVDQGSURFHGXUHVUHJDUGLQJQDQFLDOULVN
management, as described in Note 23.
7UDGHUHFHLYDEOHVFODVVLHGDVFXUUHQWDVVHWVDUHDVIROORZV
2016 2015
million PLOOLRQ
Supplementary Information

Within due date 588.9 579.5

/HVV3URYLVLRQIRUGRXEWIXOGHEWVZLWKLQGXHGDWH (2.5) (4.4)
Past due 230.7 163.4
/HVV3URYLVLRQIRUGRXEWIXOGHEWVSDVWGXH (89.5) (74.5)
Total trade receivables 727.6 664.0

As at 31 December 2016, the Group held collateral, in the form of mortgages, bank guarantees, bills of exchange and credit insurance, as
VHFXULW\DJDLQVWWUDGHUHFHLYDEOHVFODVVLHGLQFXUUHQWDVVHWVZLWKDQRPLQDODPRXQWRIPP7KHFDUU\LQJDPRXQWVRI
WKHWUDGHUHFHLYDEOHVLQFOXGHbPZKLFKDUHVXEMHFWWRIDFWRULQJDJUHHPHQW7KH*URXSFRQWLQXHVWRUHFRJQLVHWKHIDFWRUHGUHFHLYDEOHV
LQWKHLUHQWLUHW\DVLWKDVUHWDLQHGWKHVLJQLFDQWULVNVRIRZQHUVKLS7KHDPRXQWSD\DEOHXQGHUWKHIDFWRULQJDJUHHPHQWLVSUHVHQWHGZLWKLQ
borrowings (refer to Note 24).

COC016_.indb 143 3/16/17 2:36 PM

 Coca-Cola HBC
144 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

17. Trade, other receivables and assets continued

7KHDJHLQJDQDO\VLVRISDVWGXHWUDGHUHFHLYDEOHVLVDVIROORZV
2016
million
Up to three Three to six Six to nine More than nine
months months months months Total
Trade receivables past due but not impaired 114.6 12.6 3.5 10.5 141.2
Trade receivables past due and impaired 4.1 7.3 3.4 74.7 89.5
Total trade receivables past due 118.7 19.9 6.9 85.2 230.7
2015
PLOOLRQ
Up to three Three to six Six to nine 0RUHWKDQQLQH
months months months months Total
Trade receivables past due but not impaired 79.9 2.7 1.0 5.3 88.9
Trade receivables past due and impaired 1.0 9.5 2.2 61.8 74.5
Total trade receivables past due 80.9 12.2 3.2 67.1 163.4

7KHPRYHPHQWLQWKHSURYLVLRQIRUGRXEWIXOGHEWVGXULQJWKH\HDULVDVIROORZV
2016 2015
million PLOOLRQ
As at 1 January (78.9) (79.2)
$PRXQWVZULWWHQRGXULQJWKH\HDU 7.7 10.3
Amounts recovered during the year 2.2 1.2
Increase in allowance recognised in the income statement (22.8) (11.8)
Foreign currency translation (0.2) 0.6
As at 31 December (92.0) (78.9)

Receivables from related parties

7KHUHODWHGSDUW\UHFHLYDEOHVQHWRIWKHSURYLVLRQIRUGRXEWIXOGHEWVDUHDVIROORZV
2016 2015
million PLOOLRQ
Within due date 114.0 79.2
Past due 3.3 6.5
/HVV3URYLVLRQIRUGRXEWIXOGHEWV (0.3)
Total related party receivables 117.0 85.7

$VDW'HFHPEHUUHODWHGSDUW\UHFHLYDEOHVRIPPZHUHSDVWGXHEXWQRWLPSDLUHG7KHDJHLQJDQDO\VLVRIWKHVH

UHFHLYDEOHVLVDVIROORZV
2016 2015
million PLOOLRQ
Up to three months 1.3 4.3
Three to six months 0.3 0.8
Six to nine months 0.3 0.4
0RUHWKDQQLQHPRQWKV 1.1 1.0
Total 3.0 6.5

COC016_.indb 144 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 145

Strategic Report
$VVHWVFODVVLHGDVKHOGIRUVDOH
Accounting policy
1RQFXUUHQWDVVHWVDQGGLVSRVDOJURXSVDUHFODVVLHGDVKHOGIRUVDOHLILWLVFRQVLGHUHGKLJKO\SUREDEOHWKDWWKHLUFDUU\LQJDPRXQWZLOOEH
principally recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is
highly probable and the asset (or disposal group) is available for immediate sale in its present condition. In order for a sale to be considered
highly probable, management must be committed to the sale, an active programme to locate a buyer and complete the plan has been

Corporate Governance
LQLWLDWHGDQGWKHVDOHLVH[SHFWHGWREHFRPSOHWHGZLWKLQRQH\HDUIURPWKHGDWHRIFODVVLFDWLRQ
,QWKHHYHQWWKDWWKHFULWHULDIRUFRQWLQXHGFODVVLFDWLRQDVKHOGIRUVDOHDUHQRORQJHUPHWWKHDVVHWVDUHUHFODVVLHGWRSURSHUW\SODQW
and equipment and the depreciation charge is adjusted for the depreciation that would have been recognised had the assets not been
FODVVLHGDVKHOGIRUVDOH
1RQFXUUHQWDVVHWVDQGGLVSRVDOJURXSVFODVVLHGDVKHOGIRUVDOHDUHPHDVXUHGDWWKHORZHURIWKHLQGLYLGXDODVVHWVSUHYLRXVFDUU\LQJ
amount and their fair value less costs to sell.

&KDQJHVLQFDUU\LQJDPRXQWVRIDVVHWVFODVVLHGDVKHOGIRUVDOHIRUWKH\HDUVHQGHG'HFHPEHUDUHDVIROORZV
2016 2015
million PLOOLRQ

Financial Statements
As at 1 January 5.5 1.0
5HFODVVLHGIURPSURSHUW\SODQWDQGHTXLSPHQWUHIHUWR1RWH 14.4 5.4
2WKHUDVVHWVFODVVLHGDVKHOGIRUVDOH 14.0
Disposals (17.1)
5HFODVVLHGWRSURSHUW\SODQWDQGHTXLSPHQWUHIHUWR1RWH (4.3) (0.9)
Foreign currency translation (0.7)
As at 31 December 11.8 5.5

7RWDODVVHWVFODVVLHGDVKHOGIRUVDOHDVDW'HFHPEHUDPRXQWHGWRPFRPSULVLQJWKHQHWERRNYDOXHRISURSHUW\SODQWDQG
equipment in our Established and Emerging markets that have been written down to fair value less cost to sell. This is a non-recurring fair value
PHDVXUHPHQWDQGZLWKLQ/HYHORIWKHIDLUYDOXHKLHUDUFK\7KHIDLUYDOXHRIDVVHWVFODVVLHGDVKHOGIRUVDOHZDVGHWHUPLQHGWKURXJKWKHXVH
of a sales comparison approach.

Swiss Statutory Reporting

,QLWZDVDJUHHGWKDWRIWKH*URXSVVKDUHLQLWVVXEVLGLDU\1HSWQR9DQGHQ\V8$%ZRXOGEHVROGWR(XURSHDQ5HIUHVKPHQWVD
VXEVLGLDU\RI7&&&$FFRUGLQJO\RIWKHQHWDVVHWVRI1HSWQR9DQGHQ\V8$%DPRXQWLQJWRPPDLQO\UHODWLQJWRLQWDQJLEOHDVVHWV
RIPUHIHUWR1RWHQHWRIWKHUHOHYDQWGHIHUUHGWD[OLDELOLW\ZHUHFODVVLHGDVDVVHWVKHOGIRUVDOH7KHWUDQVDFWLRQZDVFRPSOHWHGLQ
'HFHPEHUUHIHUWR1RWH7RWDODVVHWVFODVVLHGDVKHOGIRUVDOHDVDW'HFHPEHUDPRXQWHGWRPFRPSULVLQJSURSHUW\
plant and equipment in our Established, Developing and Emerging markets, measured at the lower of the carrying amount and fair value less
costs to sell. The fair value of held for sale assets was determined through the use of a sales comparison approach and is a non-recurring fair
value measurement within Level 3 of the fair value hierarchy.

19. Trade and other payables

Accounting policy
Supplementary Information

7UDGHSD\DEOHVDUHUHFRJQLVHGLQLWLDOO\DWIDLUYDOXHDQGVXEVHTXHQWO\PHDVXUHGDWDPRUWLVHGFRVWXVLQJWKHHHFWLYHLQWHUHVWUDWHPHWKRG

7UDGHDQGRWKHUSD\DEOHVFRQVLVWHGRIWKHIROORZLQJDW'HFHPEHU
2016 2015
million PLOOLRQ
Trade payables 536.7 485.1
Accrued liabilities 471.2 468.5
Payables to related parties (refer to Note 26) 303.4 259.2
Deposit liabilities 100.6 112.6
Other tax and social security liabilities 98.1 89.7
Salaries and employee-related payables 43.6 45.8
Deferred income 1.0 1.2
Other payables 32.7 41.5
Total trade and other payables 1,587.3 1,503.6

7KHDPRXQWGXHWRSHQVLRQIXQGVDVDW'HFHPEHUZDVPP

COC016_.indb 145 3/16/17 2:36 PM

 Coca-Cola HBC
146 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

3URYLVLRQVDQGHPSOR\HHEHQHWV
3URYLVLRQVDQGHPSOR\HHEHQHWVFRQVLVWHGRIWKHIROORZLQJDW'HFHPEHU
2016 2015
million PLOOLRQ
Current
(PSOR\HHEHQHWV 96.0 62.3
Restructuring provisions 8.5 15.7
Other provisions 14.1 8.8
7RWDOFXUUHQWSURYLVLRQVDQGHPSOR\HHEHQHWV 118.6 86.8

Non-current
(PSOR\HHEHQHWV 123.0 140.1
Restructuring provisions 0.1
Other provisions 2.0 1.3
7RWDOQRQFXUUHQWSURYLVLRQVDQGHPSOR\HHEHQHWV 125.0 141.5
7RWDOSURYLVLRQVDQGHPSOR\HHEHQHWV 243.6 228.3

a) Provisions

Accounting policy
3URYLVLRQVDUHUHFRJQLVHGZKHQWKH*URXSKDVDSUHVHQWREOLJDWLRQOHJDORUFRQVWUXFWLYHDVDUHVXOWRIDSDVWHYHQWLWLVSUREDEOHWKDWDQ
RXWRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQHWVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGDUHOLDEOHHVWLPDWHFDQEHPDGHRIWKH
amount of the obligation.
Where the Group expects a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as
DVHSDUDWHDVVHWRQO\ZKHQVXFKUHLPEXUVHPHQWLVYLUWXDOO\FHUWDLQ,IWKHHHFWRIWKHWLPHYDOXHRIPRQH\LVPDWHULDOSURYLVLRQVDUH
GHWHUPLQHGE\GLVFRXQWLQJWKHH[SHFWHGIXWXUHFDVKRZVDWDSUHWD[UDWHWKDWUHHFWVFXUUHQWPDUNHWDVVHVVPHQWVRIWKHWLPHYDOXH
RIPRQH\DQGWKHULVNVVSHFLFWRWKHOLDELOLW\:KHUHGLVFRXQWLQJLVXVHGWKHLQFUHDVHLQWKHSURYLVLRQGXHWRWKHSDVVDJHRIWLPHLV
recognised as an interest expense.

7KHPRYHPHQWVLQUHVWUXFWXULQJDQGRWKHUSURYLVLRQVFRPSULVH
2016 2015
million PLOOLRQ
Restructuring Other Restructuring Other
provision provision provision provision
As at 1 January 15.8 10.1 7.9 5.3
Arising during the year 22.7 11.8 37.5 7.0
Unutilised during the year (26.8) (4.3) (26.3) (2.1)
Unused amount reversed (2.5) (1.5) (3.0)
Foreign currency translation (0.7) (0.3) (0.1)
As at 31 December 8.5 16.1 15.8 10.1

2WKHUSURYLVLRQVFRPSULVHDSURYLVLRQIRUHPSOR\HHOLWLJDWLRQRIPPDQGRWKHULWHPVRIPP

COC016_.indb 146 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 147

Strategic Report
E(PSOR\HHEHQHWV

Accounting policies
(PSOR\HHEHQHWV
7KH*URXSRSHUDWHVDQXPEHURIGHQHGEHQHWDQGGHQHGFRQWULEXWLRQSHQVLRQSODQVLQLWVWHUULWRULHV
7KHGHQHGEHQHWSODQVDUHPDGHXSRIERWKIXQGHGDQGXQIXQGHGSHQVLRQSODQVDQGHPSOR\HHOHDYLQJLQGHPQLWLHV7KHDVVHWVRI

Corporate Governance
IXQGHGSODQVDUHJHQHUDOO\KHOGLQVHSDUDWHWUXVWHHDGPLQLVWHUHGIXQGVDQGDUHQDQFHGE\SD\PHQWVIURPHPSOR\HHVDQGRUWKHUHOHYDQW
Group companies.
7KHOLDELOLW\UHFRJQLVHGLQWKHEDODQFHVKHHWLQUHVSHFWRIGHQHGEHQHWSODQVLVWKHSUHVHQWYDOXHRIWKHGHQHGEHQHWREOLJDWLRQDWWKH
balance sheet date less the fair value of the plan assets.
)RUGHQHGEHQHWSHQVLRQSODQVSHQVLRQFRVWVDUHDVVHVVHGXVLQJWKHSURMHFWHGXQLWFUHGLWPHWKRG$FWXDULDOJDLQVDQGORVVHVDULVLQJ
from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in
WKHSHULRGLQZKLFKWKH\DULVH6XFKDFWXDULDOJDLQVDQGORVVHVDUHQRWUHFODVVLHGWRWKHLQFRPHVWDWHPHQWLQVXEVHTXHQWSHULRGV7KH
GHQHGEHQHWREOLJDWLRQVDUHPHDVXUHGDWWKHSUHVHQWYDOXHRIWKHHVWLPDWHGIXWXUHFDVKRXWRZVXVLQJLQWHUHVWUDWHVRIKLJKTXDOLW\
FRUSRUDWHERQGVWKDWDUHGHQRPLQDWHGLQWKHFXUUHQF\LQZKLFKWKHEHQHWVZLOOEHSDLGDQGWKDWKDYHWHUPVDSSUR[LPDWLQJWRWKHWHUPV
of the related obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. Past
VHUYLFHFRVWLVUHFRJQLVHGLPPHGLDWHO\LQWKHLQFRPHVWDWHPHQW$QXPEHURIWKH*URXSVRSHUDWLRQVKDYHRWKHUORQJVHUYLFHEHQHWVLQ

Financial Statements
WKHIRUPRIMXELOHHSODQV7KHVHSODQVDUHPHDVXUHGDWWKHSUHVHQWYDOXHRIWKHHVWLPDWHGIXWXUHFDVKRXWRZVZLWKLPPHGLDWHUHFRJQLWLRQ
of actuarial gains and losses.
7KH*URXSVFRQWULEXWLRQVWRWKHGHQHGFRQWULEXWLRQSHQVLRQSODQVDUHFKDUJHGWRWKHLQFRPHVWDWHPHQWLQWKHSHULRGWRZKLFKWKH
contributions relate.

7HUPLQDWLRQEHQHWV
7HUPLQDWLRQEHQHWVDUHSD\DEOHZKHQHYHUDQHPSOR\HHVHPSOR\PHQWLVWHUPLQDWHGEHIRUHWKHQRUPDOUHWLUHPHQWGDWHRUZKHQHYHU
DQHPSOR\HHDFFHSWVYROXQWDU\UHGXQGDQF\LQH[FKDQJHIRUWKHVHEHQHWV7KH*URXSUHFRJQLVHVWHUPLQDWLRQEHQHWVDWWKHHDUOLHURI
WKHIROORZLQJGDWHVDZKHQWKH*URXSFDQQRORQJHUZLWKGUDZWKHRHURIWKRVHEHQHWVDQGEZKHQWKH*URXSUHFRJQLVHVFRVWVIRU
a restructuring that is within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and involves the payment of
WHUPLQDWLRQEHQHWV,QWKHFDVHRIDQRHUPDGHWRHQFRXUDJHYROXQWDU\UHGXQGDQF\WKHWHUPLQDWLRQEHQHWVDUHPHDVXUHGEDVHGRQ
WKHQXPEHURIHPSOR\HHVH[SHFWHGWRDFFHSWWKHRHU

Swiss Statutory Reporting

Critical accounting estimates
7KH*URXSSURYLGHVGHQHGEHQHWSHQVLRQSODQVDVDQHPSOR\HHEHQHWLQFHUWDLQWHUULWRULHV'HWHUPLQLQJWKHYDOXHRIWKHVHSODQV
requires several actuarial assumptions and estimates about discount rates, future salary increases and future pension increases. Due to
WKHORQJWHUPQDWXUHRIWKHVHSODQVVXFKHVWLPDWHVDUHVXEMHFWWRVLJQLFDQWXQFHUWDLQW\

(PSOR\HHEHQHWVFRQVLVWHGRIWKHIROORZLQJDW'HFHPEHU
2016 2015
million PLOOLRQ
'HQHGEHQHWSODQV
Supplementary Information

Employee leaving indemnities 76.0 86.9

Pension plans 39.8 22.3
/RQJVHUYLFHEHQHWVMXELOHHSODQV 8.4 8.7
7RWDOGHQHGEHQHWVSODQV 124.2 117.9
2WKHUHPSOR\HHEHQHWV
Annual leave 7.4 8.2
2WKHUHPSOR\HHEHQHWV 87.4 76.3
7RWDORWKHUHPSOR\HHEHQHWV 94.8 84.5
7RWDOHPSOR\HHEHQHWVREOLJDWLRQV 219.0 202.4

2WKHUHPSOR\HHEHQHWVDUHSULPDULO\FRPSULVHGRIHPSOR\HHERQXVHVLQFOXGLQJDPDQDJHPHQWLQFHQWLYHSODQZKLFKLVDFDVKYDULDEOHSODQ
that operates over a three-year period.
(PSOR\HHVRI&RFD&ROD+%&VVXEVLGLDULHVLQ$XVWULD%XOJDULD&URDWLD*UHHFH,WDO\0RQWHQHJUR1LJHULD3RODQG5RPDQLD6HUELDDQG
Slovenia are entitled to employee leaving indemnities, generally based on each employees length of service, employment category and
remuneration. These are unfunded plans where the Company meets the payment obligation as it falls due.

COC016_.indb 147 3/16/17 2:36 PM

 Coca-Cola HBC
148 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

3URYLVLRQVDQGHPSOR\HHEHQHWVcontinued
&RFD&ROD+%&VVXEVLGLDULHVLQ$XVWULD*UHHFH1RUWKHUQ,UHODQGWKH5HSXEOLFRI,UHODQGDQG6ZLW]HUODQGVSRQVRUGHQHGEHQHWSHQVLRQ
plans. Of the three plans in the Republic of Ireland, two have plan assets, as do the two plans in Northern Ireland, one plan in Greece and two
SODQVLQ6ZLW]HUODQG7KH$XVWULDQSODQVGRQRWKDYHSODQDVVHWVDQGWKH&RPSDQ\PHHWVWKHSD\PHQWREOLJDWLRQDVLWIDOOVGXH7KHGHQHG
EHQHWSODQVLQ$XVWULD*UHHFH5HSXEOLFRI,UHODQGDQG1RUWKHUQ,UHODQGDUHFORVHGWRQHZPHPEHUV
&RFD&ROD+%&SURYLGHVORQJVHUYLFHEHQHWVLQWKHIRUPRIMXELOHHSODQVWRLWVHPSOR\HHVLQ$XVWULD&URDWLD1LJHULD3RODQG6ORYHQLD
and Switzerland.
'HQHGEHQHWREOLJDWLRQE\VHJPHQWLVDVIROORZVIRUWKH\HDUVHQGHG'HFHPEHU
2.5m
2016 20.5m 101.2m Total 124.2m
2.2m
2015 37.4m 78.3m Total 117.9m

Emerging Developing Established

7KHDYHUDJHGXUDWLRQRIWKHGHQHGEHQHWREOLJDWLRQVLV\HDUVDQGWKHWRWDOHPSOR\HUFRQWULEXWLRQVH[SHFWHGWREHSDLGLQDUHP
5HFRQFLOLDWLRQRIGHQHGEHQHWREOLJDWLRQ
2016 2015
million PLOOLRQ
3UHVHQWYDOXHRIGHQHGEHQHWREOLJDWLRQDW-DQXDU\ 496.4 484.8
Current service cost 10.5 12.1
Interest cost 11.2 13.1
Plan participants contributions 4.5 4.9
Past service cost (8.8) (5.8)
Curtailment/settlement (1.3) (5.5)
%HQHWVSDLG (25.3) (26.4)
(Gain)/loss from change in demographic assumptions 0.4 (0.7)
*DLQORVVIURPFKDQJHLQQDQFLDODVVXPSWLRQV 56.2 (2.8)
Experience adjustments 3.2 (1.8)
Foreign currency translation (21.4) 24.5
3UHVHQWYDOXHRIGHQHGEHQHWREOLJDWLRQDW'HFHPEHU 525.6 496.4
2016 2015
million PLOOLRQ
Fair value of plan assets at 1 January 380.7 341.7
Interest income on plan assets 7.1 7.3
Return on plan assets excluding interest income 18.6 6.0
Actual employers contributions 16.2 16.1
Actual participants contributions 4.5 4.9
$FWXDOEHQHWVSDLG (15.4) (12.4)
Settlement (1.1) (7.3)
Admin expenses (0.3) (0.3)
Foreign currency translation (8.9) 24.7
Fair value of plan assets at 31 December 401.4 380.7

COC016_.indb 148 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 149

Strategic Report
7KHSUHVHQWYDOXHDQGIXQGHGVWDWXVRIGHQHGEHQHWREOLJDWLRQVZHUHDVIROORZVDW'HFHPEHU
2016 2015
million PLOOLRQ
Present value of funded obligations 439.1 398.5
Fair value of plan assets (401.4) (380.7)
'HQHGEHQHWREOLJDWLRQVRIIXQGHGSODQV 37.7 17.8
Present value of unfunded obligations 86.5 97.9

Corporate Governance
'HQHGEHQHWREOLJDWLRQV 124.2 115.7
3OXVDPRXQWVUHFRJQLVHGZLWKLQQRQFXUUHQWDVVHWVUHIHUWR1RWH 2.2
7RWDOGHQHGEHQHWREOLJDWLRQV 124.2 117.9

Funding levels are monitored in conjunction with the agreed contribution rate. The funding level of the funded plans as at 31 December 2016
ZDV
1RQHRIWKHSODQVKDYHIXQGHGVWDWXVVXUSOXVDVDW'HFHPEHU'HFHPEHUPWKDWLVUHFRJQLVHGDVDQDVVHWRQWKH
EDVLVWKDWWKH*URXSKDVDQXQFRQGLWLRQDOULJKWWRIXWXUHHFRQRPLFEHQHWVHLWKHUYLDDUHIXQGRUDUHGXFWLRQLQIXWXUHFRQWULEXWLRQV
7KHPRYHPHQWLQWKHGHQHGEHQHWREOLJDWLRQUHFRJQLVHGRQWKHEDODQFHVKHHWZDVDVIROORZV
2016 2015
million PLOOLRQ

Financial Statements
'HQHGEHQHWREOLJDWLRQDVDW-DQXDU\ 115.7 143.1
Expense recognised in the income statement 5.4 14.0
Remeasurements recognised in OCI 41.7 (11.1)
Employer contributions (16.2) (16.1)
%HQHWVSDLG (9.9) (14.0)
Foreign currency translation (12.5) (0.2)
'HQHGEHQHWREOLJDWLRQDVDW'HFHPEHU 124.2 115.7
3OXVDPRXQWVUHFRJQLVHGZLWKLQQRQFXUUHQWDVVHWVUHIHUWR1RWH 2.2
7RWDOGHQHGEHQHWREOLJDWLRQDVDW'HFHPEHU 124.2 117.9

7KHH[SHQVHUHFRJQLVHGLQWKHLQFRPHVWDWHPHQWFRPSULVHGWKHIROORZLQJIRUWKH\HDUVHQGHG'HFHPEHU

Swiss Statutory Reporting

2016 2015
million PLOOLRQ
Service cost 1.5 8.1
1HWLQWHUHVWFRVWRQGHQHGEHQHWOLDELOLW\DVVHW 4.1 5.8
Actuarial gain (0.5) (0.2)
Administrative expenses 0.3 0.3
Total 5.4 14.0

'HQHGEHQHWSODQH[SHQVHLVLQFOXGHGLQVWDFRVWVDQGSUHVHQWHGLQFRVWRIJRRGVVROGDQGRSHUDWLQJH[SHQVHV
7KHDVVXPSWLRQVZHLJKWHGDYHUDJHIRUWKH*URXSXVHGLQFRPSXWLQJWKHGHQHGEHQHWREOLJDWLRQFRPSULVHGWKHIROORZLQJIRUWKH\HDUV
HQGHG'HFHPEHU
2016 2015
Supplementary Information

% 
Discount rate 1.9 2.6
Rate of compensation increase 2.7 2.9
Rate of pension increase 1.0 0.8
/LIHH[SHFWDQF\IRUSHQVLRQHUVDWWKHDJHRILQ\HDUV
0DOH 22 22
Female 24 24

$VVHWOLDELOLW\PDWFKLQJ3ODQDVVHWVDOORFDWHGWRJURZWKDVVHWVDUHPRQLWRUHGUHJXODUO\WRHQVXUHWKH\UHPDLQDSSURSULDWHDQGLQOLQHZLWKWKH
Groups long-term strategy to manage the plans. As the plans mature, the level of investment risk will be reduced by investing more in assets
such as bonds that better match the liabilities.

COC016_.indb 149 3/16/17 2:36 PM

 Coca-Cola HBC
150 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

3URYLVLRQVDQGHPSOR\HHEHQHWVcontinued
3HQVLRQSODQDVVHWVDUHLQYHVWHGLQGLHUHQWDVVHWFODVVHVLQRUGHUWRPDLQWDLQDEDODQFHEHWZHHQULVNDQGUHWXUQ,QYHVWPHQWVDUHZHOO
GLYHUVLHGWROLPLWWKHQDQFLDOHHFWRIWKHIDLOXUHRIDQ\LQGLYLGXDOLQYHVWPHQW7KURXJKLWVGHQHGEHQHWSODQVWKH*URXSLVH[SRVHGWRD
QXPEHURIULVNVDVRXWOLQHGEHORZ
$VVHWYRODWLOLW\7KHOLDELOLWLHVDUHFDOFXODWHGXVLQJDGLVFRXQWUDWHVHWZLWKUHIHUHQFHWRFRUSRUDWHERQG\LHOGVLIDVVHWVXQGHUSHUIRUPWKLV\LHOG
WKLVZLOOFUHDWHDGHFLW7KH1RUWKHUQ,UHODQGWKH5HSXEOLFRI,UHODQGDQG6ZLVVSODQVKROGDVLJQLFDQWSURSRUWLRQRIJURZWKDVVHWVHTXLWLHV
which are expected to outperform corporate bonds in the long term while providing volatility and risk in the short term.
&KDQJHVLQERQG\LHOGV$GHFUHDVHLQFRUSRUDWHERQG\LHOGVZLOOLQFUHDVHWKHSODQOLDELOLWLHVDOWKRXJKWKLVZLOOEHSDUWLDOO\RVHWE\DQLQFUHDVHLQ
the value of the plans bond holdings. Whereas an increase in corporate bond yields will decrease the plan liabilities, although this will be partially
RVHWE\DGHFUHDVHLQWKHYDOXHRIWKHSODQVERQGKROGLQJV
,QDWLRQ7KH1RUWKHUQ,UHODQGWKH5HSXEOLFRI,UHODQGDQG6ZLVVSODQVEHQHWREOLJDWLRQVDUHOLQNHGWRLQDWLRQDQGKLJKHULQDWLRQZLOOOHDG
WRKLJKHUOLDELOLWLHVDOWKRXJKLQPRVWFDVHVFDSVRQWKHOHYHORILQDWLRQDU\LQFUHDVHVDUHLQSODFHWRSURWHFWDJDLQVWH[WUHPHLQDWLRQ7KH
PDMRULW\RIWKHDVVHWVDUHHLWKHUXQDHFWHGE\RUORRVHO\FRUUHODWHGZLWKLQDWLRQPHDQLQJWKDWDQLQFUHDVHLQLQDWLRQZLOODOVRLQFUHDVH
WKHGHFLW
/LIHH[SHFWDQF\7KHPDMRULW\RIWKHSHQVLRQSODQVREOLJDWLRQVDUHWRSURYLGHEHQHWVIRUWKHOLIHRIWKHPHPEHUVRLQFUHDVHVLQOLIH
expectancy will result in an increase in the liabilities.
The sensitivity analysis presented below is based on a change in assumption while all other assumptions remain constant.
,PSDFWRQGHQHGEHQHWREOLJDWLRQDVDW
31 December 2016
Change in Increase in Decrease in
assumptions assumption assumption

Discount rate   

Rate of compensation increase   

Rate of pension increase   

Life expectancy 1 year  

3ODQDVVHWVDUHLQYHVWHGDVIROORZV
7KHDVVHWVRIIXQGHGSODQVDUHJHQHUDOO\KHOGLQVHSDUDWHO\DGPLQLVWHUHGWUXVWVHLWKHUDVVSHFLFDVVHWVRUDVDSURSRUWLRQRIDJHQHUDOIXQGRU
are insurance contracts. Plan assets held in trust are governed by local regulations and practice in each country. The category other mainly
LQFOXGHVLQYHVWPHQWVLQIXQGVKROGLQJDSRUWIROLRRIDVVHWV3ODQDVVHWVUHODWHSUHGRPLQDQWO\WRTXRWHGQDQFLDOLQVWUXPHQWV
Equity securities were not invested in ordinary shares of the Company as at 31 December 2016 or 31 December 2015.
Assets category 2016 (%) Assets category 2015 (%)

Equity securities Eurozone: 4% Equity securities Eurozone: 4%

Equity securities Non-Eurozone: 22% Equity securities Non-Eurozone: 20%
Government bonds Eurozone: 19% Government bonds Eurozone: 18%
Corporate bonds Eurozone: 7% Corporate bonds Eurozone: 1%
Corporate bonds Non-Eurozone: 20% Corporate bonds Non-Eurozone: 28%
Real estate: 10% Real estate: 10%
Cash: 3% Cash: 2%
Other: 15% Other: 17%

'HQHGFRQWULEXWLRQSODQV
7KHH[SHQVHUHFRJQLVHGLQWKHLQFRPHVWDWHPHQWLQIRUWKHGHQHGFRQWULEXWLRQSODQLVPP7KLVLVLQFOXGHGLQ
employee costs and recorded in cost of goods sold and operating expenses.

COC016_.indb 150 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 151

Strategic Report
2VHWWLQJQDQFLDODVVHWVDQGQDQFLDOOLDELOLWLHV
Accounting policy
7KH*URXSRVHWVQDQFLDODVVHWVDQGQDQFLDOOLDELOLWLHVWRWKHQHWDPRXQWUHSRUWHGLQWKHEDODQFHVKHHWZKHQLWFXUUHQWO\KDVDOHJDOO\
HQIRUFHDEOHULJKWWRRVHWWKHUHFRJQLVHGDPRXQWVDQGLWLQWHQGVWRVHWWOHRQDQHWEDVLVRUWRUHDOLVHWKHDVVHWDQGVHWWOHWKHOLDELOLW\
simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of
business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

Corporate Governance
The Group enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master netting agreements
or other similar agreements. In general, under such agreements the counterparties can elect to settle into one single net amount the
aggregated amounts owed by each counterparty on a single day with respect of all outstanding transactions of the same currency and the
same type of derivative. In the event of default or early termination all outstanding transactions under the agreement are terminated and
VXEMHFWWRDQ\VHWR7KHVHDJUHHPHQWVGRQRWPHHWDOORIWKH,$6FULWHULDIRURVHWWLQJLQWKHEDODQFHVKHHWDVWKH*URXSGRHVQRWKDYH
DQ\FXUUHQWOHJDOO\HQIRUFHDEOHULJKWWRRVHWDPRXQWVVLQFHWKHULJKWFDQRQO\EHDSSOLHGLIHOHFWHGE\ERWKFRXQWHUSDUWLHV
7KHQDQFLDODVVHWVDQGQDQFLDOOLDELOLWLHVSUHVHQWHGEHORZDUHVXEMHFWWRRVHWWLQJHQIRUFHDEOHPDVWHUQHWWLQJRUVLPLODUDJUHHPHQWV7KH
FROXPQ1HWDPRXQWVKRZVWKHLPSDFWRQWKH*URXSVEDODQFHVKHHWLIDOOVHWRULJKWVZHUHH[HUFLVHG

a) Financial assets

Financial Statements
As at 31 December 2016
Related amounts
QRWVHWR{LQWKH
balance sheet
Gross amounts of
Gross amounts of UHFRJQLVHGQDQFLDO 1HWDPRXQWVRIQDQFLDO
UHFRJQLVHGQDQFLDO OLDELOLWLHVVHWRLQWKH assets presented in the Financial
assets balance sheet balance sheet instruments Net amount
million million million million million
'HULYDWLYHQDQFLDODVVHWV 16.0 16.0 (8.3) 7.7
Cash and cash equivalents 573.2 573.2 573.2
Trade receivables 780.7 (53.1) 727.6 727.6
Total 1,369.9 (53.1) 1,316.8 (8.3) 1,308.5

Swiss Statutory Reporting

As at 31 December 2015
Related amounts
QRWVHWRLQWKH
balance sheet
Gross amounts of
Gross amounts of UHFRJQLVHGQDQFLDO 1HWDPRXQWVRIQDQFLDO
UHFRJQLVHGQDQFLDO OLDELOLWLHVVHWRLQWKH assets presented in the Financial
assets balance sheet balance sheet instruments Net amount
PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ million
'HULYDWLYHQDQFLDODVVHWV 23.5 23.5 (5.0) 18.5
Cash and cash equivalents 487.4 487.4 487.4
Trade receivables 718.9 (54.9) 664.0 664.0
Supplementary Information

Total 1,229.8 (54.9) 1,174.9 (5.0) 1,169.9

COC016_.indb 151 3/16/17 2:36 PM

 Coca-Cola HBC
152 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

2VHWWLQJQDQFLDODVVHWVDQGQDQFLDOOLDELOLWLHVcontinued
b) Financial liabilities
As at 31 December 2016
Related amounts
QRWVHWR{LQWKH
balance sheet
Gross amounts of
Gross amounts of UHFRJQLVHGQDQFLDO 1HWDPRXQWVRIQDQFLDO
UHFRJQLVHGQDQFLDO DVVHWVVHWRLQWKH liabilities presented in the Financial
liabilities balance sheet balance sheet instruments Net amount
million million million million million
'HULYDWLYHQDQFLDOOLDELOLWLHV 15.5 15.5 (8.3) 7.2
Trade payables 589.8 (53.1) 536.7 536.7
Total 605.3 (53.1) 552.2 (8.3) 543.9

As at 31 December 2015
Related amounts
QRWVHWRbLQbWKH
balance sheet
Gross amounts of
Gross amounts of UHFRJQLVHGQDQFLDO 1HWDPRXQWVRIQDQFLDO
UHFRJQLVHGQDQFLDO DVVHWVVHWRLQWKH liabilities presented in the Financial
liabilities balance sheet balance sheet instruments Net amount
PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ
'HULYDWLYHQDQFLDOOLDELOLWLHV 55.4 55.4 (5.0) 50.4
Trade payables 540.0 (54.9) 485.1 485.1
Total 595.4 (54.9) 540.5 (5.0) 535.5

22. Business combinations

Accounting policy
The acquisition method of accounting is used to account for business combinations. The consideration transferred is the fair value of
any asset transferred, shares issued and liabilities assumed. The consideration transferred includes the fair value of any asset or liability
UHVXOWLQJIURPDFRQWLQJHQWFRQVLGHUDWLRQDUUDQJHPHQW,GHQWLDEOHDVVHWVDFTXLUHGDQGOLDELOLWLHVDQGFRQWLQJHQWOLDELOLWLHVDVVXPHG
are measured initially at their fair values at the acquisition date. The excess of the consideration transferred and the fair value of non-
controlling interest over the net assets acquired and liabilities assumed is recorded as goodwill. All acquisition-related costs are expensed
as incurred.
For each business combination, the Group elects whether it measures the non-controlling interest in the acquiree either at fair value or at
WKHSURSRUWLRQDWHVKDUHRIWKHDFTXLUHHVLGHQWLDEOHQHWDVVHWV

Acquisition of controlling interest

2Q$SULOWKH*URXSDFTXLUHGRI1HSWQR9DQGHQ\V8$%WKHOHDGLQJERWWOHGZDWHUFRPSDQ\LQ/LWKXDQLDIRUDFRQVLGHUDWLRQRI
PLOOLRQLQFOXGLQJWKHDVVXPSWLRQRIGHEWRIPLOOLRQ7KHDFTXLVLWLRQLQFOXGHVWKHPLQHUDOZDWHUEUDQG1HSWQDVDQGLVH[SHFWHGWR
LQFUHDVHWKH*URXSVPDUNHWVKDUHLQWKHVWLOOGULQNVFDWHJRU\LQ/LWKXDQLD'HWDLOVRIWKHDFTXLVLWLRQDUHDVIROORZV
Acquirees
carrying
amount before Fair value
acquisition adjustments Fair value
PLOOLRQ PLOOLRQ million
Trademark 7.8 7.8
Water rights 8.8 8.8
Property, plant and equipment 2.4 0.4 2.8
Inventories 0.1 0.1
Other current assets 1.1 1.1
Short-term borrowings (1.0) (1.0)
Other current liabilities (0.7) (0.7)
Deferred tax liabilities (2.6) (2.6)
1HWLGHQWLDEOHDVVHWVDFTXLUHG 1.9 14.4 16.3
Goodwill arising on acquisition 3.2
Cash paid to former shareholders 19.5

COC016_.indb 152 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 153

Strategic Report
7KHDFTXLVLWLRQUHVXOWHGLQWKH*URXSUHFRUGLQJPRIJRRGZLOOPRIWUDGHPDUNDQGPRIZDWHUULJKWVLQLWV'HYHORSLQJPDUNHWV
VHJPHQW7KHJRRGZLOODULVLQJIURPWKHDFTXLVLWLRQRI1HSWQR9DQGHQ\V8$%LVDWWULEXWHGWRH[SHFWHGIXWXUHFDVKRZVLQFOXGLQJWKHHHFW
RIV\QHUJLHVLQH[FHVVRIWKHYDOXHRIQHWLGHQWLDEOHDVVHWV
7KHDFTXLUHGEXVLQHVVFRQWULEXWHGQHWVDOHVUHYHQXHRIPDQGQHWSURWRIPWRWKH*URXSIRUWKHSHULRGIURP$SULOWR
'HFHPEHU,IWKHDFTXLVLWLRQKDGRFFXUUHGRQ-DQXDU\FRQVROLGDWHG*URXSQHWVDOHVUHYHQXHDQGFRQVROLGDWHG*URXSSURW
DIWHUWD[IRU\HDUHQGHG'HFHPEHUZRXOGKDYHEHHQKLJKHUE\PDQGPUHVSHFWLYHO\
,Q'HFHPEHU7&&&DFTXLUHGRIWKHVKDUHFDSLWDORI1HSWQR9DQGHQ\V8$%IRUDWRWDOFRQVLGHUDWLRQRIPRIZKLFKP

Corporate Governance
KDVEHHQUHFHLYHGDQGLVLQFOXGHGLQOLQH1HWUHFHLSWVIURPLQYHVWPHQWVLQWKHFRQVROLGDWHGFDVKRZVWDWHPHQW7KLVWUDQVDFWLRQUHVXOWHGLQ
a joint venture between the Group and TCCC. The gain on the transaction was immaterial.

)LQDQFLDOULVNPDQDJHPHQWDQGQDQFLDOLQVWUXPHQWV
Accounting policy
'HULYDWLYHQDQFLDOLQVWUXPHQWV
7KH*URXSXVHVGHULYDWLYHQDQFLDOLQVWUXPHQWVLQFOXGLQJFXUUHQF\FRPPRGLW\DQGLQWHUHVWUDWHGHULYDWLYHVWRPDQDJHFXUUHQF\
FRPPRGLW\SULFHDQGLQWHUHVWbUDWHULVNDVVRFLDWHGZLWKWKH*URXSVXQGHUO\LQJEXVLQHVVDFWLYLWLHV7KH*URXSGRHVQRWHQWHULQWRGHULYDWLYH
QDQFLDOLQVWUXPHQWVIRUWUDGLQJDFWLYLW\SXUSRVHV

Financial Statements
$OOGHULYDWLYHQDQFLDOLQVWUXPHQWVDUHLQLWLDOO\UHFRJQLVHGRQWKHEDODQFHVKHHWDWIDLUYDOXHDQGDUHVXEVHTXHQWO\UHPHDVXUHGDWWKHLUIDLU
YDOXH&KDQJHVLQWKHIDLUYDOXHRIGHULYDWLYHQDQFLDOLQVWUXPHQWVDUHUHFRJQLVHGDWHDFKUHSRUWLQJGDWHHLWKHULQWKHLQFRPHVWDWHPHQW
RULQHTXLW\GHSHQGLQJRQZKHWKHUWKHGHULYDWLYHQDQFLDOLQVWUXPHQWTXDOLHVIRUKHGJHDFFRXQWLQJDQGLIVRZKHWKHULWTXDOLHVDVDIDLU
YDOXHKHGJHRUDFDVKRZKHGJH
'HULYDWLYHVHPEHGGHGLQKRVWFRQWUDFWVDUHDFFRXQWHGIRUDVVHSDUDWHGHULYDWLYHVDQGUHFRUGHGDWIDLUYDOXHLIb
a) their economic characteristics and risks are not closely related to those of the host contracts;
EWKHKRVWFRQWUDFWVDUHQRWGHVLJQDWHGDVDWIDLUYDOXHWKURXJKSURWRUORVVDQG
FDVHSDUDWHLQVWUXPHQWZLWKWKHVDPHWHUPVDVWKHHPEHGGHGGHULYDWLYHPHHWVWKHGHQLWLRQRIDGHULYDWLYH
7KHVHHPEHGGHGGHULYDWLYHVDUHPHDVXUHGDWIDLUYDOXHZLWKFKDQJHVLQIDLUYDOXHUHFRJQLVHGLQSURWRUORVV5HDVVHVVPHQWRQO\RFFXUV
LIWKHUHLVHLWKHUDFKDQJHLQWKHWHUPVRIWKHFRQWUDFWWKDWVLJQLFDQWO\PRGLHVWKHFDVKRZVWKDWZRXOGRWKHUZLVHEHUHTXLUHGRUD

Swiss Statutory Reporting

UHFODVVLFDWLRQRIDQDQFLDODVVHWRXWRIWKHIDLUYDOXHWKURXJKSURWRUORVV
$OOGHULYDWLYHQDQFLDOLQVWUXPHQWVWKDWDUHQRWSDUWRIDQHHFWLYHKHGJLQJUHODWLRQVKLSXQGHVLJQDWHGKHGJHVDUHFODVVLHGDVDVVHWVRU
OLDELOLWLHVDWIDLUYDOXHWKURXJKSURWRUORVV)973/
At the inception of a hedge transaction the Group documents the relationship between the hedging instrument and the hedged item,
as well as its risk management objective and strategy for undertaking the hedge transaction. This process includes linking the derivative
QDQFLDOLQVWUXPHQWGHVLJQDWHGDVDKHGJLQJLQVWUXPHQWWRWKHVSHFLFDVVHWOLDELOLW\UPFRPPLWPHQWRUIRUHFDVWWUDQVDFWLRQ%RWKDW
WKHKHGJHLQFHSWLRQDQGRQDQRQJRLQJEDVLVWKH*URXSDVVHVVHVDQGGRFXPHQWVZKHWKHUWKHGHULYDWLYHQDQFLDOLQVWUXPHQWXVHGLQWKH
KHGJLQJWUDQVDFWLRQLVKLJKO\HHFWLYHLQRVHWWLQJFKDQJHVLQIDLUYDOXHRUFDVKRZRIWKHKHGJHGLWHP
&KDQJHVLQWKHIDLUYDOXHVRIGHULYDWLYHQDQFLDOLQVWUXPHQWVWKDWDUHGHVLJQDWHGDQGTXDOLI\DVIDLUYDOXHKHGJHVDQGDUHHHFWLYH
are recorded in the income statement, together with the changes in the fair values of the hedged items that relate to the hedged
ULVNV&KDQJHVLQWKHIDLUYDOXHRIGHULYDWLYHQDQFLDOLQVWUXPHQWVWKDWDUHGHVLJQDWHGDQGHHFWLYHDVKHGJHVRIIXWXUHFDVKRZVDUH
Supplementary Information

UHFRJQLVHGGLUHFWO\LQRWKHUFRPSUHKHQVLYHLQFRPHDQGWKHLQHHFWLYHSRUWLRQLVUHFRJQLVHGLPPHGLDWHO\LQWKHLQFRPHVWDWHPHQW
$PRXQWVDFFXPXODWHGLQHTXLW\DUHUHF\FOHGWRWKHLQFRPHVWDWHPHQWDVWKHUHODWHGDVVHWDFTXLUHGRUOLDELOLW\DVVXPHGDHFWVWKHLQFRPH
VWDWHPHQW&KDQJHVLQWKHIDLUYDOXHVRIGHULYDWLYHQDQFLDOLQVWUXPHQWVWKDWGRQRWTXDOLI\IRUKHGJHDFFRXQWLQJDUHUHFRJQLVHGLQWKH
income statement as they arise.
+HGJHDFFRXQWLQJLVGLVFRQWLQXHGZKHQWKHKHGJLQJLQVWUXPHQWH[SLUHVRULVVROGWHUPLQDWHGH[HUFLVHGRUQRORQJHUTXDOLHVIRU
hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the
forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is
transferred to the income statement.
Regular purchases and sales of investments are recognised on the trade date, which is the day the Group commits to purchase or sell.
The investments are recognised initially at fair value plus transaction costs, except in the case of FVTPL. For investments traded in active
markets, fair value is determined by reference to stock exchange quoted bid prices. For other investments, fair value is estimated by
UHIHUHQFHWRWKHFXUUHQWPDUNHWYDOXHRIVLPLODULQVWUXPHQWVRUE\UHIHUHQFHWRWKHGLVFRXQWHGFDVKRZVRIWKHXQGHUO\LQJQHWDVVHWV

COC016_.indb 153 3/16/17 2:36 PM

 Coca-Cola HBC
154 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

)LQDQFLDOULVNPDQDJHPHQWDQGQDQFLDOLQVWUXPHQWVcontinued
Financial risk factors
7KH*URXSVDFWLYLWLHVH[SRVHLWWRDYDULHW\RIQDQFLDOULVNVPDUNHWULVNLQFOXGLQJIRUHLJQFXUUHQF\ULVNFRPPRGLW\SULFHULVNLQWHUHVWUDWH
ULVNFUHGLWULVNOLTXLGLW\ULVNDQGFDSLWDOULVN7KH*URXSVRYHUDOOULVNPDQDJHPHQWSURJUDPPHIRFXVHVRQWKHYRODWLOLW\RIQDQFLDOPDUNHWV
DQGVHHNVWRPLQLPLVHSRWHQWLDODGYHUVHHHFWVRQWKH*URXSVFDVKRZV7KH*URXSXVHVGHULYDWLYHQDQFLDOLQVWUXPHQWVWRKHGJHFHUWDLQ
risk exposures. Risk management is carried out by Group Treasury in a controlled manner, consistent with the Board of Directors approved
SROLFLHV*URXS7UHDVXU\LGHQWLHVHYDOXDWHVDQGKHGJHVQDQFLDOULVNVLQFORVHFRRSHUDWLRQZLWKWKH*URXSVVXEVLGLDULHV7KH%RDUGRI
Directors has approved the Treasury Policy and Chart of Authority, which together provide the control framework for all treasury and treasury-
related transactions.

Market risk
D)RUHLJQFXUUHQF\ULVN
7KH*URXSLVH[SRVHGWRWKHHHFWRIIRUHLJQFXUUHQF\ULVNRQIXWXUHWUDQVDFWLRQVUHFRJQLVHGPRQHWDU\DVVHWVDQGOLDELOLWLHVWKDWDUH
denominated in currencies other than the local entitys functional currency, as well as net investments in foreign operations. Foreign currency
forward, option and future contracts are used to hedge a portion of the Groups foreign currency risk. The majority of the foreign currency
forward, option and future contracts have maturities of less than one year after the balance sheet date. The foreign currency risk arising from
the investment in foreign operations is not hedged.
0DQDJHPHQWKDVVHWXSDSROLF\WKDWUHTXLUHV*URXSFRPSDQLHVWRPDQDJHWKHLUIRUHLJQH[FKDQJHULVNDJDLQVWWKHLUIXQFWLRQDOFXUUHQF\7R
manage their foreign exchange risk arising from future transactions and recognised monetary assets and liabilities, entities in the Group use
foreign currency forward, option and future contracts transacted by Group Treasury. Group Treasurys risk management policy is to hedge,
RQDQDYHUDJHFRYHUDJHUDWLREDVLVEHWZHHQDQGRIDQWLFLSDWHGFDVKRZVIRUWKHQH[WPRQWKVE\XVLQJDOD\HUVWUDWHJ\DQG
RIEDODQFHVKHHWUHPHDVXUHPHQWULVNLQHDFKPDMRUIRUHLJQFXUUHQF\ZLWKRXWVLJQLFDQWFXUUHQF\FRQWURO(DFKVXEVLGLDU\GHVLJQDWHV
FRQWUDFWVZLWK*URXS7UHDVXU\DVIDLUYDOXHKHGJHVRUFDVKRZKHGJHVDVDSSURSULDWH([WHUQDOIRUHLJQH[FKDQJHFRQWUDFWVDUHGHVLJQDWHGDW
*URXSOHYHODVKHGJHVRIIRUHLJQH[FKDQJHULVNRQVSHFLFPRQHWDU\DVVHWVPRQHWDU\OLDELOLWLHVRUIXWXUHWUDQVDFWLRQVRQDJURVVEDVLV
The following tables present details of the Groups sensitivity to reasonably possible increases and decreases in the Euro and US dollar against
the relevant foreign currencies. In determining reasonable possible changes, the historical volatility over a 12-month period of the respective
foreign currencies in relation to the Euro and the US dollar has been considered. The sensitivity analysis determines the potential gains and
losses in the income statement or equity arising from the Groups foreign exchange positions as a result of the corresponding percentage
increases and decreases in the Groups main foreign currencies relative to the Euro and the US dollar. The sensitivity analysis includes
outstanding foreign currency denominated monetary items, external loans, and loans between operations within the Group where the
denomination of the loan is in a currency other than the functional currency of the local entity.
2016 exchange risk sensitivity to reasonably possible changes in the Euro against relevant other currencies
Euro strengthens against Euro weakens against
local currency local currency
Loss/(gain) (Gain)/loss
% of historical in income (Gain)/loss in income Loss/(gain)
volatility over a statement in equity statement in equity
PRQWKSHULRG million million million million
Armenian dram 8.94% (0.3) 0.3
Belarusian rouble 14.59% (1.0) 1.4
Bulgarian lev 0.70% (0.2) 0.2
Croatian kuna 1.63% (0.1) 0.2
Czech koruna 0.69% (0.1) 0.1
Hungarian forint 4.91% 0.2 (0.5) (0.3) 0.5
0ROGRYDQOHX 9.90% 0.7 (0.9)
Nigerian naira 43.27% 11.1 (28.0)
Polish zloty 7.29% 0.1 (1.8) (0.1) 2.1
Romanian leu 2.58% 0.1 (0.5) (0.1) 0.6
Russian rouble 20.12% (2.2) (4.0) 3.2 6.5
Serbian dinar 2.73% 0.2 (0.3)
Swiss franc 4.47% 0.3 (1.5) (0.3) 1.6
UK sterling 11.91% 1.2 0.4 (1.5) (0.5)
Ukrainian hryvnia 14.84% 1.3 (1.7)
US dollar 8.29% (0.5) 0.2 0.6 (0.2)
10.2 (7.1) (26.5) 9.9

COC016_.indb 154 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 155

Strategic Report
2016 exchange risk sensitivity to reasonably possible changes in the US dollar against relevant other currencies
US dollar strengthens against US dollar weakens against
local currency local currency
Loss/(gain) (Gain)/loss
% of historical in income (Gain)/loss in income Loss/(gain)
volatility over a statement in equity statement in equity
PRQWKSHULRG million million million million
Euro 8.29% 1.8 (2.1)

Corporate Governance
Hungarian forint 9.79% 0.1 (0.2)
Nigerian naira 38.95% (1.9) 1.0
Russian rouble 19.53% (0.1) (9.3) (0.6) 15.4
Serbian dinar 8.46% 0.1 (0.1)
Ukrainian hryvnia 11.80% 0.4 (0.5)
0.4 (9.3) (2.5) 15.4

2015 exchange risk sensitivity to reasonably possible changes in the Euro against relevant other currencies
Euro strengthens against Euro weakens against
local currency local currency
Loss/(gain) (Gain)/loss in

Financial Statements
RIKLVWRULFDO in income (Gain)/loss income Loss/(gain)
volatility over a statement in equity statement in equity
12-month period PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ
Armenian dram  (0.1) 0.1
Belarusian rouble  (1.6) 2.9
Bulgarian lev  (0.1) 0.1
Croatian kuna  (0.1) (0.4) 0.1 0.4
Czech koruna  (0.3) 0.1 0.2
Hungarian forint  0.1 (0.5) (0.1) 0.4
0ROGRYDQOHX  1.2 1.8 (2.2) (3.2)
Nigerian naira  2.8 (3.9)
Polish zloty  0.2 (1.8) 0.1 1.2

Swiss Statutory Reporting

Romanian leu  0.2 (1.0) (0.2) 1.1
Russian rouble  3.5 (11.5) (1.6) 1.2
Serbian dinar  0.2 (0.2)
Swiss franc  (0.8) (3.7) 1.3 5.8
UK sterling  0.7 (0.9)
Ukrainian hryvnia  5.7 (13.0)
US dollar  (0.9) 1.8 1.2 (2.3)
10.3 (14.9) (15.3) 3.9

2015 exchange risk sensitivity to reasonably possible changes in the US dollar against relevant other currencies
Supplementary Information

US dollar strengthens against US dollar weakens against

local currency local currency
Loss/(gain) (Gain)/loss
RIKLVWRULFDO in income (Gain)/loss in income Loss/(gain)
volatility over a statement in equity statement in equity
12-month period PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ
Euro  (0.5) 0.6
Nigerian naira  1.2 (1.4)
Romanian leu  0.3 (0.4)
Russian rouble  5.4 (18.1) (0.6) 5.5
Serbian dinar  (0.1) 0.2
Ukrainian hryvnia  0.6 (1.3)
6.9 (18.1) (2.9) 5.5

COC016_.indb 155 3/16/17 2:36 PM

 Coca-Cola HBC
156 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

)LQDQFLDOULVNPDQDJHPHQWDQGQDQFLDOLQVWUXPHQWVcontinued
E&RPPRGLW\SULFHULVN
7KH*URXSLVDHFWHGE\WKHYRODWLOLW\RIFHUWDLQFRPPRGLW\SULFHVEHLQJPDLQO\VXJDUDOXPLQLXP3(7DQGJDVRLOLQUHODWLRQWRFHUWDLQUDZ
materials necessary for the production of the Groups products.
'XHWRWKHVLJQLFDQWO\LQFUHDVHGYRODWLOLW\RIFRPPRGLW\SULFHVWKH*URXSV%RDUGRI'LUHFWRUVKDVGHYHORSHGDQGHQDFWHGDULVN
management strategy regarding commodity price risk and its mitigation. Although the Group continues to contract prices with suppliers in
DGYDQFHWRUHGXFHLWVH[SRVXUHWRWKHHHFWRIVKRUWWHUPFKDQJHVLQWKHSULFHRIVXJDUDOXPLQLXPJDVRLODQG3(7WKH*URXSKHGJHVWKH
market price of sugar, aluminium and gas oil using commodity swap contracts based on a rolling 36-month forecast. Group Treasurys risk
PDQDJHPHQWSROLF\LVWRKHGJHDPLQLPXPRIDQGDPD[LPXPRIRIFRPPRGLW\H[SRVXUHIRUWKHQH[WPRQWKV
The following table presents details of the Groups income statement and equity sensitivity to increases and decreases in sugar, aluminium
and gas oil prices. The table does not show the sensitivity to the Groups total underlying commodity exposure or the impact of changes in
volumes that may arise from an increase or decrease in the respective commodity prices. The sensitivity analysis determines the potential
HHFWRQSURWRUORVVDQGHTXLW\DULVLQJIURPWKH*URXSVFRPPRGLW\VZDSFRQWUDFWSRVLWLRQVDVDUHVXOWRIWKHUHDVRQDEO\SRVVLEOHLQFUHDVHV
or decreases of the respective commodity price.
2016 commodity price risk sensitivity to reasonably possible changes in the commodity price of relevant commodities
Commodity price increases with Commodity price decreases with
all other variables held constant all other variables held constant
% of historical
volatility over a (Gain)/loss Loss/(gain)
PRQWKSHULRG in income (Gain)/loss in income Loss/(gain)
per contract statement in equity statement in equity
maturity million million million million
Sugar 19.2% (12.4) 12.4
Aluminium 16.4% (6.7) (1.1) 6.7 1.1
Aluminium Premium 19.2% (0.4) 0.4
Gas oil 41.0% (6.5) 6.5
(26.0) (1.1) 26.0 1.1

2015 commodity price risk sensitivity to reasonably possible changes in the commodity price of relevant commodities
Commodity price increases with Commodity price decreases with
all other variables held constant all other variables held constant
RIKLVWRULFDO
volatility over a (Gain)/loss Loss/(gain)
12-month period in income (Gain)/loss in income Loss/(gain)
per contract statement in equity statement in equity
maturity PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ
Sugar  (10.8) 10.8
Aluminium  (10.5) (1.3) 10.5 1.3
Gas oil  (5.5) 5.5
(26.8) (1.3) 26.8 1.3

F,QWHUHVWUDWHULVN
The sensitivity analysis in the following table has been determined based on exposure to interest rates of both derivative and non-derivative
LQVWUXPHQWVH[LVWLQJDWWKHEDODQFHVKHHWGDWHDQGDVVXPLQJFRQVWDQWIRUHLJQH[FKDQJHUDWHV)RURDWLQJUDWHOLDELOLWLHVWKHDQDO\VLV
is prepared assuming the amount of liability outstanding at the balance sheet date was outstanding for the whole year. A 50 basis point
LQFUHDVHbRUGHFUHDVHbIRUEDVLVSRLQWbUHSUHVHQWVPDQDJHPHQWVDVVHVVPHQWRIDUHDVRQDEO\SRVVLEOHFKDQJHLQLQWHUHVWUDWHV
Interest rate risk sensitivity to reasonably possible changes in interest rates
2016 2015
million PLOOLRQ
Loss/(gain) Loss/(gain)
in income (Gain)/loss in income (Gain)/loss
statement In equity statement in equity
Increase in basis points 0.1 (53.7)
Decrease in basis points (0.1) 58.4

COC016_.indb 156 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 157

Strategic Report
The impact on the Groups equity in 2015 is attributable to the changes in the fair value of the forward starting swaps entered into in 2014 and
VHWWOHGLQ0DUFKGHVLJQDWHGDVFDVKRZKHGJLQJLQVWUXPHQWVDVVXPLQJKHGJHHHFWLYHQHVV

Credit risk
7KH*URXSKDVOLPLWHGFRQFHQWUDWLRQRIFUHGLWULVNDFURVVWUDGHDQGQDQFLDOFRXQWHUSDUWLHV3ROLFLHVDUHLQSODFHWRHQVXUHWKDWVDOHVRI
products and services on credit are made to customers with an appropriate credit history. The Group has policies that limit the amount of
FUHGLWH[SRVXUHWRDQ\VLQJOHQDQFLDOLQVWLWXWLRQ

Corporate Governance
The Groups maximum exposure to credit risk in the event that counterparties fail to perform their obligations at 31 December 2016 in
UHODWLRQWRHDFKFODVVRIUHFRJQLVHGQDQFLDODVVHWLVWKHFDUU\LQJDPRXQWRIWKRVHDVVHWVDVLQGLFDWHGRQWKHEDODQFHVKHHW
If credit is granted to customers, their credit quality is normally assessed using either external agencies and/or historic experience. Credit limits
are set accordingly. Further information regarding credit risk exposure is described in Note 17.
:LWKUHVSHFWWRGHULYDWLYHQDQFLDOLQVWUXPHQWVFUHGLWULVNDULVHVIURPWKHSRWHQWLDOIDLOXUHRIFRXQWHUSDUWLHVWRPHHWWKHLUREOLJDWLRQVXQGHU
the contract or arrangement. The Groups maximum credit risk exposure for each derivative instrument is the carrying amount of the
derivative. In addition, the Group regularly makes use of time deposits to invest excess cash balances and to diversify its counterparty risk. As
DW'HFHPEHUDQDPRXQWRIPLVLQYHVWHGLQWLPHGHSRVLWVUHIHUWR1RWH
7KH*URXSRQO\XQGHUWDNHVLQYHVWPHQWDQGGHULYDWLYHWUDQVDFWLRQVZLWKEDQNVDQGQDQFLDOLQVWLWXWLRQVWKDWKDYHDPLQLPXPFUHGLWUDWLQJRI
%%%IURP6WDQGDUG 3RRUVDQG%DDIURP0RRG\V7KH*URXSDOVRXVHV&UHGLW'HIDXOW6ZDSVRIDFRXQWHUSDUW\LQRUGHUWRPHDVXUHLQD

Financial Statements
timelier way the creditworthiness of a counterparty and set up its counterparties in tiers in order to assign maximum exposure and tenor per
tier. If the Credit Default Swaps of a certain counterparty exceed 400 basis points the Group will stop trading derivatives with that counterparty
DQGZLOOWU\WRFDQFHODQ\GHSRVLWVRQDEHVWHRUWVEDVLV

Liquidity risk
7KH*URXSDFWLYHO\PDQDJHVOLTXLGLW\ULVNWRHQVXUHWKHUHDUHVXFLHQWIXQGVDYDLODEOHIRUDQ\VKRUWWHUPDQGORQJWHUPFRPPLWPHQWV%DQN
overdrafts and bank facilities, both committed and uncommitted, are used to manage this risk.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management
framework for the management of the Groups short-, medium- and long-term funding and liquidity requirements. The Group manages
liquidity risk by maintaining adequate cash reserves and committed banking facilities, access to the debt and equity capital markets, and by
FRQWLQXRXVO\PRQLWRULQJIRUHFDVWHGDQGDFWXDOFDVKRZV,Q1RWHWKHXQGUDZQIDFLOLWLHVWKDWWKH*URXSKDVDWLWVGLVSRVDOWRPDQDJH
liquidity risk are discussed under the headings commercial paper programme and committed credit facilities.

Swiss Statutory Reporting

7KHIROORZLQJWDEOHVGHWDLOWKH*URXSVUHPDLQLQJFRQWUDFWXDOPDWXULWLHVIRULWVQDQFLDOOLDELOLWLHV7KHWDEOHVLQFOXGHERWKLQWHUHVWDQGSULQFLSDO
XQGLVFRXQWHGFDVKRZVDVVXPLQJWKDWLQWHUHVWUDWHVUHPDLQFRQVWDQWIURP'HFHPEHU
Up to One to Two to Over
one year two years YH\HDUV YH\HDUV
million million million million
Borrowings 193.4 43.7 903.6 691.9
Derivative liabilities 14.2 1.0 0.3
Trade and other payables 1,488.2 1.3 0.2 6.7
As at 31 December 2016 1,695.8 46.0 904.1 698.6
Up to One to Two to Over
one year two years YH\HDUV YH\HDUV
Supplementary Information

PLOOLRQ PLOOLRQ PLOOLRQ PLOOLRQ

Borrowings 833.8 52.1 908.9 86.7
Derivative liabilities 40.9 11.8 2.7
Trade and other payables 1,502.4 7.2
As at 31 December 2015 2,377.1 63.9 911.6 93.9

:KHQUHOHYDQWWKH*URXSKHGJHVH[SRVXUHVWRFKDQJHVLQWKHIDLUYDOXHRIGHEWDVZHOODVLQWKHIRUHLJQH[FKDQJHFDVKRZVRIGHEWE\
using a combination of interest rate and cross currency swap contracts. The impact of these instruments has been included in the aggregate
LQWHUHVWDQGSULQFLSDOXQGLVFRXQWHGFDVKRZVUHODWHGWRWKHXQGHUO\LQJERUURZLQJVSUHVHQWHGDERYH

COC016_.indb 157 3/16/17 2:36 PM

 Coca-Cola HBC
158 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

)LQDQFLDOULVNPDQDJHPHQWDQGQDQFLDOLQVWUXPHQWVcontinued
Capital risk
$GMXVWHG(%,7'$LVFDOFXODWHGE\DGGLQJEDFNWRRSHUDWLQJSURWWKHGHSUHFLDWLRQDQGLPSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQWWKH
amortisation and impairment of intangible assets, the employee share option and performance share costs and other non-cash items, if
any. Comparable adjusted EBITDA refers to adjusted EBITDA excluding restructuring expenses and the unrealised gains or losses resulting
from the mark-to-market valuation of derivatives and embedded derivatives related to commodity hedging.
5HIHUWR1RWHIRUGHQLWLRQRIQHWGHEW

The Groups objectives when managing capital are to safeguard the Groups ability to continue as a going concern and to maintain an optimal
capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may increase or decrease debt, issue or buy back shares, adjust the amount of
dividends paid to shareholders, or return capital to shareholders.
7KH*URXSVJRDOLVWRPDLQWDLQDFRQVHUYDWLYHQDQFLDOSUROH7KLVLVHYLGHQFHGE\WKHFUHGLWUDWLQJVPDLQWDLQHGZLWK6WDQGDUG 3RRUVDQG
0RRG\V,Q0D\6WDQGDUG 3RRUVFKDQJHGWKHRXWORRNIURPVWDEOHWRSRVLWLYHDQGDUPHG&RFD&ROD+%&V%%%ORQJWHUP$
VKRUWWHUPFRUSRUDWHFUHGLWUDWLQJV7KHFRUSRUDWHFUHGLWUDWLQJVE\0RRG\VUHPDLQHGXQFKDQJHG%DDORQJWHUP3VKRUWWHUPDQG
stable outlook after the latest assessment in November 2016.
7KH*URXSPRQLWRUVLWVQDQFLDOFDSDFLW\DQGFUHGLWUDWLQJVE\UHIHUHQFHWRDQXPEHURINH\QDQFLDOUDWLRVLQFOXGLQJQHWGHEWWRFRPSDUDEOH
adjusted EBITDA, which provides a framework within which the Groups capital base is managed. This ratio is calculated as net debt
divided by comparable adjusted EBITDA. The Groups medium- to long-term aim is to maintain the net debt to comparable adjusted EBITDA
ratio within a 1.5 to 2.0 range.
7KHUDWLRVDVDW'HFHPEHUZHUHDVIROORZV
2016 2015
million PLOOLRQ
Net debt (refer to Note 24) 1,051.4 1,217.1
2SHUDWLQJSURW 506.3 418.2
Depreciation and impairment of property, plant and equipment 332.4 340.2
Amortisation of intangible assets 0.4 0.4
Employee share options and performance shares 8.1 8.8
Other non-cash items included in operating income (1.3) (1.3)
Adjusted EBITDA 845.9 766.3
Restructuring expenses (refer to Note 8) 19.9 36.3
Unrealised commodity derivatives (26.5) 1.0
Total comparable adjusted EBITDA 839.3 803.6
Net debt / comparable adjusted EBITDA ratio 1.25 1.51

Hedging activity
D&DVKRZKHGJHV
7KHIDLUYDOXHVRIGHULYDWLYHQDQFLDOLQVWUXPHQWVDVDW'HFHPEHUGHVLJQDWHGDVFDVKRZKHGJHVZHUH
Contracts with Contracts with
positive fair values negative fair values
2016 2015 2016 2015
million PLOOLRQ million PLOOLRQ
Foreign currency forward contracts 1.0 1.8 (4.0) (0.5)
Foreign currency option contracts 0.3 6.5
Forward starting swap contracts (24.6)
Commodity swap contracts 0.4 (0.1) (0.8)
Total contracts 1.7 8.3 (4.1) (25.9)

&DVKRZVIURPWKH*URXSVFDVKRZKHGJHVDW'HFHPEHUDUHH[SHFWHGWRRFFXUDQGDFFRUGLQJO\DHFWSURWRUORVVLQ
H[FHSWIRUWKHFRPPRGLW\VZDSFRQWUDFWVIRUZKLFKFDVKRZVDUHH[SHFWHGWRRFFXUDQGDHFWSURWRUORVVEHWZHHQDQG7KH
QHWDPRXQWUHFODVVLHGIURPRWKHUFRPSUHKHQVLYHLQFRPHWRWKHLQFRPHVWDWHPHQWIRUWKH\HDUDPRXQWHGWRDPORVVP
ORVVRXWRIZKLFKPZDVUHFRUGHGLQLQWHUHVWH[SHQVHPORVVDQGPZDVUHFRUGHGLQFRVWRIJRRGVVROGQLO

COC016_.indb 158 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 159

Strategic Report
E)DLUYDOXHKHGJHV
7KHIDLUYDOXHVRIGHULYDWLYHQDQFLDOLQVWUXPHQWVDVDW'HFHPEHUGHVLJQDWHGDVIDLUYDOXHKHGJHVZHUH
Contracts with positive Contracts with negative
fair values fair values
2016 2015 2016 2015
million PLOOLRQ million PLOOLRQ
Foreign currency forward contracts 0.8 (1.7)

Corporate Governance
Foreign currency option contracts 1.8
Total contracts 2.6 (1.7)

7KHIDLUYDOXHQHWORVVRIWKHIRUHLJQFXUUHQF\IRUZDUGDQGRSWLRQFRQWUDFWVXVHGDVIDLUYDOXHKHGJLQJLQVWUXPHQWVZDVPLQ
PQHWJDLQZKLFKZDVUHFRJQLVHGLQRSHUDWLQJH[SHQVHVDQGRVHWZLWKDVLPLODUJDLQRQWKHKHGJHGLWHPDWWULEXWDEOHWRIRUHLJQ
currency risk.

F8QGHVLJQDWHGKHGJHV
7KHIDLUYDOXHVRIGHULYDWLYHQDQFLDOLQVWUXPHQWVDVDW'HFHPEHUZKLFKHFRQRPLFDOO\KHGJHWKH*URXSVULVNVDQGIRUZKLFKKHGJH
DFFRXQWLQJKDVQRWEHHQDSSOLHGZHUH
Contracts with positive Contracts with negative
fair values fair values

Financial Statements
2016 2015 2016 2015
million PLOOLRQ million PLOOLRQ
Foreign currency forward contracts 1.5 4.7 (4.6) (1.5)
Foreign currency option contracts 0.3
Foreign currency future contracts 0.3
Embedded derivatives 3.3 6.2
Commodity swap contracts 9.2 1.4 (5.1) (28.0)
Total contracts 14.3 12.6 (9.7) (29.5)

7KHQHWJDLQVRQIRUHLJQFXUUHQF\DQGFRPPRGLW\GHULYDWLYHFRQWUDFWVDWIDLUYDOXHWKURXJKSURWDQGORVVIRUZKLFKKHGJHDFFRXQWLQJZDV
QRWDSSOLHGDPRXQWHGWRDPJDLQPORVVRIZKLFKDPJDLQZDVUHFRUGHGLQFRVWRIJRRGVVROGPORVV
DQGDPJDLQLQRSHUDWLQJH[SHQVHVPORVV

Swiss Statutory Reporting

'HULYDWLYHQDQFLDOLQVWUXPHQWV
7KHGHULYDWLYHQDQFLDOLQVWUXPHQWVDUHLQFOXGHGLQWKH*URXSVEDODQFHVKHHWDVIROORZV
Assets Liabilities
2016 2015 2016 2015
million PLOOLRQ million PLOOLRQ
Current
Foreign currency forward contracts 2.5 7.3 (10.3) (2.0)
Foreign currency option contracts 0.3 8.6
Foreign currency future contracts 0.3
Commodity swap contracts 4.8 1.0 (3.9) (14.3)
Supplementary Information

Forward starting swap contracts (24.6)

Total current 7.9 16.9 (14.2) (40.9)
1RQFXUUHQW
Commodity swap contracts 4.8 0.4 (1.3) (14.5)
Forward starting swap contracts
Embedded derivatives 3.3 6.2
7RWDOQRQFXUUHQW 8.1 6.6 (1.3) (14.5)

COC016_.indb 159 3/16/17 2:36 PM

 Coca-Cola HBC
160 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

)LQDQFLDOULVNPDQDJHPHQWDQGQDQFLDOLQVWUXPHQWVcontinued
Financial instruments categories
&DWHJRULHVRIQDQFLDOLQVWUXPHQWVDVDW'HFHPEHUZHUHDVIROORZVLQPLOOLRQ
2016
Derivatives
designated Total
Loans and Assets at as hedging +HOGWR $YDLODEOH current and
Assets receivables FVTPL instruments maturity IRUVDOH QRQFXUUHQW Current 1RQFXUUHQW
Investments 0.9 3.6 4.5 4.5
'HULYDWLYHQDQFLDOLQVWUXPHQWV 14.3 1.7 16.0 7.9 8.1
Trade and other receivables excluding
prepayments 957.4 957.4 954.8 2.6
Cash and cash equivalents 573.2 573.2 573.2
Total 1,530.6 14.3 1.7 0.9 3.6 1,551.1 1,535.9 15.2

Liabilities Derivatives
held at designated Total
amortised Liabilities as hedging current and
Liabilities cost at FVTPL instruments QRQFXUUHQW Current 1RQFXUUHQW
Trade and other payables excluding provisions and deferred
income 1,496.4 1,496.4 1,488.2 8.2
Borrowings 1,624.6 1,624.6 156.5 1,468.1
'HULYDWLYHQDQFLDOLQVWUXPHQWV 9.7 5.8 15.5 14.2 1.3
Total 3,121.0 9.7 5.8 3,136.5 1,658.9 1,477.6

2015
Derivatives
designated Total current
Loans and Assets at as hedging Held-to- Available- and
Assets receivables FVTPL instruments maturity for-sale non-current Current Non-current
Investments 1.1 1.7 2.8 2.8
'HULYDWLYHQDQFLDOLQVWUXPHQWV 12.6 10.9 23.5 16.9 6.6
Trade and other receivables excluding
prepayments 859.4 859.4 843.2 16.2
Cash and cash equivalents 487.4 487.4 487.4
Total 1,346.8 12.6 10.9 1.1 1.7 1,373.1 1,347.5 25.6

Liabilities Derivatives
held at designated Total current
amortised Liabilities as hedging and
Liabilities cost at FVTPL instruments non-current Current Non-current
Trade and other payables excluding provisions 1,509.6 1,509.6 1,502.4 7.2
Borrowings 1,704.5 1,704.5 781.5 923.0
'HULYDWLYHQDQFLDOLQVWUXPHQWV 29.5 25.9 55.4 40.9 14.5
Total 3,214.1 29.5 25.9 3,269.5 2,324.8 944.7

)RUHLJQFXUUHQF\GHULYDWLYHV
7KHQHWQRWLRQDOSULQFLSDODPRXQWVRIWKHRXWVWDQGLQJIRUHLJQFXUUHQF\IRUZDUGFRQWUDFWVDW'HFHPEHUWRWDOOHGP
P7KHQHWQRWLRQDOSULQFLSDODPRXQWVRIWKHRXWVWDQGLQJIRUHLJQFXUUHQF\RSWLRQFRQWUDFWVDW'HFHPEHUWRWDOOHG
PP7KHQHWQRWLRQDOSULQFLSDODPRXQWVRIWKHRXWVWDQGLQJIRUHLJQFXUUHQF\IXWXUHFRQWUDFWVDW'HFHPEHU
WRWDOOHGPQLO

COC016_.indb 160 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 161

Strategic Report
&RPPRGLW\VZDSFRQWUDFWV
7KHQRWLRQDOSULQFLSDODPRXQWVRIWKHRXWVWDQGLQJFRPPRGLW\VZDSFRQWUDFWVDW'HFHPEHUWRWDOOHGPP

)RUZDUGVWDUWLQJVZDSFRQWUDFWV
7KH*URXSHQWHUHGLQWRIRUZDUGVWDUWLQJVZDSFRQWUDFWVRIPLQWRKHGJHWKHLQWHUHVWUDWHULVNUHODWHGWRLWV(XURGHQRPLQDWHG
IRUHFDVWHGLVVXDQFHRI[HGUDWHGHEWLQ0DUFK,Q$XJXVWWKH*URXSHQWHUHGLQWRDGGLWLRQDOIRUZDUGVWDUWLQJVZDSFRQWUDFWVRI
P,Q0DUFKWKHIRUZDUGVWDUWLQJVZDSFRQWUDFWVZHUHVHWWOHGDQGDWWKHVDPHWLPHWKHQHZQRWHZDVLVVXHGWKHDFFXPXODWHG
ORVVRIPUHFRUGHGLQRWKHUFRPSUHKHQVLYHLQFRPHLVEHLQJDPRUWLVHGWRWKHLQFRPHVWDWHPHQWRYHUWKHWHUPRIWKHQHZQRWH

Corporate Governance
(refer to Note 24).

(PEHGGHGGHULYDWLYHV
During 2015 the Group recognised embedded derivatives whose risks and economic characteristics were not considered to be closely related
to the commodity contract in which they were embedded. The fair value of the embedded derivatives as at 31 December 2016 amounted to a
QDQFLDODVVHWRIPP

)DLUYDOXHVRIQDQFLDODVVHWVDQGOLDELOLWLHV
)RUQDQFLDOLQVWUXPHQWVVXFKDVFDVKGHSRVLWVGHEWRUVDQGFUHGLWRUVLQYHVWPHQWVORDQVSD\DEOHWRUHODWHGSDUWLHVVKRUWWHUPERUURZLQJV
H[FOXGLQJWKHFXUUHQWSRUWLRQRIERQGVDQGQRWHVSD\DEOHDQGRWKHUQDQFLDOOLDELOLWLHVRWKHUWKDQERQGVDQGQRWHVSD\DEOHFDUU\LQJYDOXHV
DUHDUHDVRQDEOHDSSUR[LPDWLRQRIWKHLUIDLUYDOXHV$FFRUGLQJWRWKHIDLUYDOXHKLHUDUFK\WKHQDQFLDOLQVWUXPHQWVPHDVXUHGDWIDLUYDOXHDUH

Financial Statements
FODVVLHGDVIROORZV

/HYHO
The fair value of available-for-sale listed equity securities is based on quoted market prices at the reported date. The fair value of bonds is
based on quoted market prices at the reported date.

/HYHO
The fair value of foreign currency forward, option and future contracts, commodity swap contracts, bonds and notes payable, interest rate
swap contracts, forward starting swap contracts, embedded foreign currency derivatives and cross currency swap contracts is determined
by using valuation techniques. These valuation techniques maximise the use of observable market data. The fair value of the foreign currency
forward, option and future contracts, commodity swap contracts, embedded foreign currency derivatives and cross currency swap contracts
is calculated by reference to quoted forward exchange, deposit rates and forward rate curve of the underlying commodity at the reported

Swiss Statutory Reporting

date for contracts with similar maturity dates. The fair value of interest rate option contracts is calculated by reference to the Black-Scholes
YDOXDWLRQPRGHODQGLPSOLHGYRODWLOLWLHV7KHIDLUYDOXHRILQWHUHVWUDWHVZDSFRQWUDFWVLVGHWHUPLQHGDVWKHGLHUHQFHLQWKHSUHVHQWYDOXHRIWKH
IXWXUHLQWHUHVWFDVKLQRZVDQGRXWRZVEDVHGRQREVHUYDEOH\LHOGFXUYHV

/HYHO
7KHIDLUYDOXHRIDYDLODEOHIRUVDOHXQOLVWHGLQYHVWPHQWVLVGHWHUPLQHGWKURXJKWKHXVHRIHVWLPDWHGGLVFRXQWHGFDVKRZV
Supplementary Information

COC016_.indb 161 3/16/17 2:36 PM

 Coca-Cola HBC
162 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

)LQDQFLDOULVNPDQDJHPHQWDQGQDQFLDOLQVWUXPHQWVcontinued
The following table provides the fair value hierarchy in which fair value measurements are categorised for assets and liabilities measured at fair
YDOXHDVDW'HFHPEHU
Level 1 Level 2 Level 3 Total
million million million million
Financial assets at FVTPL
Foreign currency forward contracts 1.5 1.5
Embedded derivatives 3.3 3.3
Foreign currency future contracts 0.3 0.3
Commodity swap contracts 9.2 9.2
'HULYDWLYHQDQFLDODVVHWVXVHGIRUKHGJLQJ
&DVKRZKHGJHV
Foreign currency forward contracts 1.0 1.0
Foreign currency option contracts 0.3 0.3
Commodity swap contracts 0.4 0.4
$YDLODEOHIRUVDOHQDQFLDODVVHWV
Equity securities 0.9 2.7 3.6
7RWDOQDQFLDODVVHWV 0.9 16.0 2.7 19.6
Financial liabilities at FVTPL
Foreign currency forward contracts (4.6) (4.6)
Commodity swap contracts (5.1) (5.1)
'HULYDWLYHQDQFLDOOLDELOLWLHVXVHGIRUKHGJLQJ
Fair value hedges
Foreign currency forward contracts (1.7) (1.7)
&DVKRZKHGJHV
Foreign currency forward contracts (4.0) (4.0)
Commodity swap contracts (0.1) (0.1)
7RWDOQDQFLDOOLDELOLWLHV (15.5) (15.5)

'XULQJWKH*URXSDFTXLUHGDQHTXLW\LQYHVWPHQWRIPFODVVLHGZLWKLQ/HYHOKLHUDUFK\7KHUHZHUHQRWUDQVIHUVEHWZHHQ/HYHO
and Level 2 in the period.

COC016_.indb 162 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 163

Strategic Report
The following table provides the fair value hierarchy in which fair value measurements are categorised for assets and liabilities measured at fair
YDOXHDVDW'HFHPEHU
Level 1 Level 2 Level 3 Total
PLOOLRQ PLOOLRQ PLOOLRQ million
Financial assets at FVTPL
Foreign currency forward contracts 4.7 4.7
Foreign currency option contracts 0.3 0.3

Corporate Governance
Embedded derivatives 6.2 6.2
Commodity swap contracts 1.4 1.4
'HULYDWLYHQDQFLDODVVHWVXVHGIRUKHGJLQJ
Fair value hedges
Foreign currency forward contracts 0.8 0.8
Foreign currency option contracts 1.8 1.8
&DVKRZKHGJHV
Foreign currency forward contracts 1.8 1.8
Foreign currency option contracts 6.5 6.5
$YDLODEOHIRUVDOHQDQFLDODVVHWV
Equity securities 1.2 0.5 1.7

Financial Statements
7RWDOQDQFLDODVVHWV 1.2 23.5 0.5 25.2
Financial liabilities at FVTPL
Foreign currency forward contracts (1.5) (1.5)
Commodity swap contracts (28.0) (28.0)
'HULYDWLYHQDQFLDOOLDELOLWLHVXVHGIRUKHGJLQJ
&DVKRZKHGJHV
Foreign currency forward contracts (0.5) (0.5)
Forward starting swap contracts (24.6) (24.6)
Commodity swap contracts (0.8) (0.8)
7RWDOQDQFLDOOLDELOLWLHV (55.4) (55.4)

Swiss Statutory Reporting

There were no material changes in fair value measurements for Level 3 items for the year ended 31 December 2015. There were no transfers
between Level 1 and Level 2 in the period.

Supplementary Information

COC016_.indb 163 3/16/17 2:36 PM

 Coca-Cola HBC
164 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

24. Net debt

Accounting policy
Borrowings are initially recognised at the fair value net of transaction costs incurred.
After initial recognition, all interest-bearing borrowings are subsequently measured at amortised cost. Amortised cost is calculated using
WKHHHFWLYHLQWHUHVWUDWHPHWKRGZKHUHE\DQ\GLVFRXQWSUHPLXPRUWUDQVDFWLRQFRVWVDVVRFLDWHGZLWKDERUURZLQJDUHDPRUWLVHGWRWKH
income statement over the borrowing period.
5HIHUDOVRWR1RWHIRUDFFRXQWLQJSROLF\RQQDQFHOHDVHV
Cash and cash equivalents comprise cash balances and short-term, highly liquid investments that are readily convertible to known
DPRXQWVRIFDVKDQGZKLFKDUHVXEMHFWWRLQVLJQLFDQWULVNRIFKDQJHLQYDOXH%DQNRYHUGUDIWVDUHFODVVLHGDVVKRUWWHUPERUURZLQJVLQ
WKHEDODQFHVKHHWDQGIRUWKHSXUSRVHRIWKHFDVKRZVWDWHPHQW
1HWGHEWLVGHQHGDVFXUUHQWERUURZLQJVSOXVQRQFXUUHQWERUURZLQJVOHVVFDVKDQGFDVKHTXLYDOHQWV

1HWGHEWIRUWKH\HDUVHQGHG'HFHPEHUFRPSULVHG
2016 2015
million PLOOLRQ
Current borrowings 156.5 781.5
Non-current borrowings 1,468.1 923.0
/HVV&DVKDQGFDVKHTXLYDOHQWV (573.2) (487.4)
Net debt 1,051.4 1,217.1

a) Borrowings
7KH*URXSKHOGWKHIROORZLQJERUURZLQJVDVDW'HFHPEHU
2016 2015
million PLOOLRQ
Current portion of long-term bonds, bills and unsecured notes 599.8
Commercial paper 108.5 173.5
Loan payable to related parties (refer to Note 26) 4.1 0.2
Other borrowings 36.4
149.0 773.5
2EOLJDWLRQVXQGHUQDQFHOHDVHVIDOOLQJGXHZLWKLQRQH\HDU 7.5 8.0
Total borrowings falling due within one year 156.5 781.5
Borrowings falling due within one to two years
Loan payable to related parties (refer to Note 26) 17.4
%RUURZLQJVIDOOLQJGXHZLWKLQWZRWRYH\HDUV
Bonds, bills and unsecured notes 796.0 794.9
Loan payable to related parties (refer to Note 26) 13.3
%RUURZLQJVIDOOLQJGXHLQPRUHWKDQYH\HDUV
Bonds, bills and unsecured notes 595.8
1,391.8 825.6
2EOLJDWLRQVXQGHUQDQFHOHDVHVIDOOLQJGXHLQPRUHWKDQRQH\HDU 76.3 97.4
Total borrowings falling due after one year 1,468.1 923.0
Total borrowings 1,624.6 1,704.5

COC016_.indb 164 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 165

Strategic Report
&RPPHUFLDOSDSHUSURJUDPPH
,Q2FWREHUWKH*URXSHVWDEOLVKHGDEQ(XURFRPPHUFLDOSDSHUSURJUDPPH&3SURJUDPPHZKLFKZDVXSGDWHGLQ6HSWHPEHU
2014, to further diversify its short-term funding sources. The Euro-commercial paper notes may be issued either as non-interest-bearing
QRWHVVROGDWDGLVFRXQWRUDVLQWHUHVWEHDULQJQRWHVDWD[HGRURDWLQJUDWH$OOFRPPHUFLDOSDSHULVVXHGXQGHUWKH&3SURJUDPPHPXVWEH
repaid within 7 to 364 days. The CP programme has been granted the Short Term Euro Paper label (STEP) and commercial paper is issued
WKURXJK&RFD&ROD+%&VRZQHGVXEVLGLDU\&RFD&ROD+%&)LQDQFH%9DQGLVIXOO\XQFRQGLWLRQDOO\DQGLUUHYRFDEO\JXDUDQWHHGE\
&RFD&ROD+%&$*7KHRXWVWDQGLQJDPRXQWXQGHUWKH&3SURJUDPPHDVDW'HFHPEHUZDVPP

Corporate Governance
&RPPLWWHGFUHGLWIDFLOLWLHV
,Q-XQHWKH*URXSUHSODFHGLWVWKHQH[LVWLQJPV\QGLFDWHGUHYROYLQJFUHGLWIDFLOLW\ZLWKDQHZPV\QGLFDWHGORDQIDFLOLW\
SURYLGHGE\YDULRXVQDQFLDOLQVWLWXWLRQVH[SLULQJRQ-XQHZLWKWKHRSWLRQWREHH[WHQGHGIRURQHPRUH\HDU,Q-XQHWKH
Company exercised its option and the banks agreed to extend the facility for one more year until 24 June 2021.This facility can be used for
JHQHUDOFRUSRUDWHSXUSRVHVDQGFDUULHVDRDWLQJLQWHUHVWUDWHRYHU(85,%25DQG/,%251RDPRXQWVKDYHEHHQGUDZQXQGHUWKHV\QGLFDWHG
ORDQIDFLOLW\VLQFHLQFHSWLRQ7KHERUURZHULQWKHV\QGLFDWHGORDQIDFLOLW\LV&RFD&ROD+%&VRZQHGVXEVLGLDU\&RFD&ROD+%&)LQDQFH
B.V. and it is fully, unconditionally and irrevocably guaranteed by Coca-Cola HBC AG and Coca-Cola HBC Holdings B.V. and is not subject to
DQ\QDQFLDOFRYHQDQWV

(XURPHGLXPWHUPQRWHSURJUDPPH
,Q-XQHWKH*URXSHVWDEOLVKHGDQHZEQ(XURPHGLXPWHUPQRWHSURJUDPPHWKH(0713URJUDPPH7KH(071SURJUDPPHZDV

Financial Statements
XSGDWHGLQ6HSWHPEHUDQGWKHQDJDLQLQ6HSWHPEHU1RWHVDUHLVVXHGXQGHUWKH(071SURJUDPPHWKURXJK&RFD&ROD+%&V
RZQHGVXEVLGLDU\&RFD&ROD+%&)LQDQFH%9DQGDUHIXOO\XQFRQGLWLRQDOO\DQGLUUHYRFDEO\JXDUDQWHHGE\&RFD&ROD+%&$*
,Q-XQH&RFD&ROD+%&)LQDQFH%9FRPSOHWHGWKHLVVXHRIPVHYHQ\HDU[HGUDWH(XURGHQRPLQDWHGQRWHV7KHQHW
SURFHHGVRIWKHQHZLVVXHZHUHXVHGWRUHSD\WKH86PQRWHVGXHLQ6HSWHPEHUDQGSDUWLDOO\UHSD\PRIWKHYH
\HDU[HGUDWHQRWHVGXHLQ-DQXDU\
,Q0DUFK&RFD&ROD+%&)LQDQFH%9FRPSOHWHGWKHLVVXHRIDP(XURGHQRPLQDWHG[HGUDWHERQGPDWXULQJLQ1RYHPEHU
7KHFRXSRQUDWHRIWKHQHZERQGLVZKLFKLQFOXGLQJWKHDPRUWLVDWLRQRIWKHORVVRQWKHIRUZDUGVWDUWLQJVZDSFRQWUDFWVRYHU
WKHWHUPRIWKH[HGUDWHERQGUHVXOWVLQDQHHFWLYHLQWHUHVWUDWHRIUHIHUWR1RWH7KHQHWSURFHHGVRIWKHQHZLVVXHZHUHXVHG
WRSDUWLDOO\UHSD\PRIWKHVHYHQ\HDU[HGUDWHQRWHVGXHLQ1RYHPEHUWKHUHPDLQLQJPZDVUHSDLGLQ1RYHPEHU
2016 upon its maturity.
$VDW'HFHPEHUDWRWDORIEQLQQRWHVLVVXHGXQGHUWKH(071SURJUDPPHZHUHRXWVWDQGLQJ

Swiss Statutory Reporting

6XPPDU\RIQRWHVRXWVWDQGLQJDVDW'HFHPEHU
Book value Fair value
Fixed 2016 2015 2016 2015
Notes Start date Maturity date coupon million PLOOLRQ million PLOOLRQ
P 16 November 2009 16 November 2016  299.8 310.3
P 0DUFK 16 November 2016  300.0 310.3
P 18 June 2013 18 June 2020  796.0 794.9 855.9 845.2
P 0DUFK 11 November 2024  595.8 634.8
Total 1,391.8 1,394.7 1,490.7 1,465.8

The fair values are within Level 1 of the fair value hierarchy.
Supplementary Information

COC016_.indb 165 3/16/17 2:36 PM

 Coca-Cola HBC
166 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

24. Net debt continued

2EOLJDWLRQVXQGHUQDQFHOHDVHV
)XWXUHPLQLPXPOHDVHSD\PHQWVXQGHUQDQFHOHDVHVWRJHWKHUZLWKWKHSUHVHQWYDOXHRIWKHQHWPLQLPXPOHDVHSD\PHQWVDVDW
'HFHPEHUZHUHDVIROORZV
2016 2015
million PLOOLRQ
Minimum Present value 0LQLPXP Present value
payments of payments payments of payments
Less than one year 13.7 7.5 15.8 8.0
Later than one year but less than two years 13.5 7.7 15.7 8.3
Later than two years but less than three years 11.9 6.7 15.6 8.8
Later than three years but less than four years 11.9 7.1 14.1 7.7
/DWHUWKDQIRXU\HDUVEXWOHVVWKDQYH\HDUV 11.9 7.5 14.1 8.2
/DWHUWKDQYH\HDUV 62.6 47.3 86.7 64.4
Total minimum lease payments 125.5 83.8 162.0 105.4
)XWXUHQDQFHFKDUJHVRQQDQFHOHDVHV (41.7) (56.6)
Present value of minimum lease payments 83.8 83.8 105.4 105.4

7RWDOERUURZLQJVDW'HFHPEHUbZHUHKHOGLQWKHIROORZLQJFXUUHQFLHV
Current 1RQFXUUHQW
2016 2015 2016 2015
million PLOOLRQ million PLOOLRQ
Euro 122.8 777.3 1,416.1 852.3
Croatian kuna 15.3
Russian rouble 11.6
US dollar 4.5 1.8 28.4 42.3
UK sterling 1.3 1.4 10.9 14.2
Polish zloty 0.9 0.9 12.7 14.2
Other 0.1 0.1
Total borrowings 156.5 781.5 1,468.1 923.0

7KHFDUU\LQJDPRXQWVRILQWHUHVWEHDULQJERUURZLQJVKHOGDW[HGDQGRDWLQJLQWHUHVWUDWHDVDW'HFHPEHUDVZHOODVWKHZHLJKWHG
DYHUDJHLQWHUHVWUDWHVDQGPDWXULWLHVRI[HGUDWHERUURZLQJVZHUHDVIROORZV
Fixed Floating
interest rate interest rate Total
million million million
Euro 1,515.9 23.0 1,538.9
US dollar 30.2 2.7 32.9
Polish zloty 13.6 13.6
UK sterling 12.2 12.2
Russian rouble 11.6 11.6
Other 0.1 0.1
Total interest bearing borrowings 1,546.1 63.2 1,609.3

2WKHUERUURZLQJVRIPDUHVXEMHFWWRIDFWRULQJDJUHHPHQWVEDVHGRQZKLFKWKHFXVWRPHUVDUHOLDEOHWRWKHLQWHUHVWEHLQJFKDUJHG
UHIHUbWR1RWH
)LQDQFLDOOLDELOLWLHVUHSUHVHQW[HGDQGRDWLQJUDWHERUURZLQJVKHOGE\WKH*URXS7KH*URXSVSROLF\LVWRKHGJHH[SRVXUHVWRFKDQJHVLQ
WKHIDLUYDOXHRIGHEWDQGLQWHUHVWUDWHVE\XVLQJDFRPELQDWLRQRIFURVVFXUUHQF\VZDSFRQWUDFWV[HGWRRDWLQJUDWHLQWHUHVWUDWHVZDS
FRQWUDFWVDQGLQWHUHVWUDWHRSWLRQFRQWUDFWV7KHZHLJKWHGDYHUDJHLQWHUHVWUDWHRIWKH[HGUDWH(XUROLDELOLWLHVLVDQGWKHZHLJKWHG
DYHUDJHPDWXULW\IRUZKLFKWKHLQWHUHVWUDWHLV[HGLV\HDUV

COC016_.indb 166 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 167

Strategic Report
7KHWUDQVDFWLRQVZLWKUHODWHGSDUWLHVEHDURDWLQJLQWHUHVWEDVHGRQWKHIROORZLQJEHQFKPDUNUDWHV
Euro PRQWK(85,%25(XURSHDQLQWHUEDQNRHUHGUDWH

b) Cash and cash equivalents

&DVKDQGFDVKHTXLYDOHQWVDVDW'HFHPEHUFRPSULVHWKHIROORZLQJ
2016 2015
million PLOOLRQ

Corporate Governance
Cash at bank, in transit and in hand 329.7 124.7
Short-term deposits 243.5 362.7
Total cash and cash equivalents 573.2 487.4

&DVKDQGFDVKHTXLYDOHQWVDUHKHOGLQWKHIROORZLQJFXUUHQFLHV
2016 2015
million PLOOLRQ
Euro 400.7 392.6
Nigerian naira 110.7 35.7
Russian rouble 11.7 7.8
Serbian dinar 9.1 1.3

Financial Statements
UK sterling 6.6 3.9
Polish zloty 6.2 5.4
Hungarian forint 6.1 2.7
Romanian leu 5.6 11.6
Swiss franc 4.6 6.8
US dollar 3.3 4.8
Ukrainian hryvnia 2.5 3.1
Belarusian rouble 1.4 3.1
Other 4.7 8.6
Total cash and cash equivalents 573.2 487.4

&DVKDQGFDVKHTXLYDOHQWVLQFOXGHVDQDPRXQWRIPLOOLRQHTXLYDOHQWLQ1LJHULDQQDLUDDQGPLOOLRQKHOGE\WKH*URXSVVXEVLGLDU\

Swiss Statutory Reporting

1LJHULDQ%RWWOLQJ&RPSDQ\/WGLQFOXGLQJPLOOLRQHTXLYDOHQWLQ1LJHULDQQDLUDZKLFKUHODWHVWRWKHRXWVWDQGLQJEDODQFHRIWKHEDQN
account held for the repayment of its former minority shareholders, following the 2011 acquisition of non-controlling interests.
&DVKDQGFDVKHTXLYDOHQWVKHOGE\RXUVXEVLGLDULHVLQ*UHHFHRIPLOOLRQZHUHVXEMHFWWRFDSLWDOFRQWUROVDVDW'HFHPEHU
The amount of dividends payable to the Company by its operating subsidiaries is subject to, among other restrictions, general limitations
imposed by the corporate laws and exchange control restrictions of the respective jurisdictions where those subsidiaries are organised and
operate. Also, there are fund transfer restrictions in certain countries in which we operate, in particular Belarus, Greece, Serbia and Ukraine,
where these restrictions do not have a material impact on the Groups liquidity, as the amounts of cash and cash equivalents held in such
countries are generally retained for capital expenditure, working capital and dividend distribution purposes. Fund transfer restrictions are also
DSSOLFDEOHLQ1LJHULDIXUWKHUPRUHWKHWLJKWOLTXLGLW\LQWKHIRUHLJQH[FKDQJHPDUNHWLQ1LJHULDKDVVLJQLFDQWO\OLPLWHGRXUDELOLW\WRH[HFXWH
payments in foreign currency, leading to a temporarily high Nigerian naira cash balance. Intra group dividends paid by certain of our subsidiaries
Supplementary Information

are also subject to withholding taxes.

COC016_.indb 167 3/16/17 2:36 PM

 Coca-Cola HBC
168 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

25. Equity
Accounting policies
6KDUHFDSLWDO
Coca-Cola HBC has only one class of shares, ordinary shares. When new shares are issued, they are recorded in share capital at their
par value. The excess of the issue price over the par value is recorded to the share premium reserve. Incremental external costs directly
attributable to the issue of new shares or to the process of returning capital to shareholders are recorded in equity as a deduction, net of
tax, in the share premium reserve.

'LYLGHQGV
'LYLGHQGVDUHUHFRUGHGLQWKH*URXSVFRQVROLGDWHGQDQFLDOVWDWHPHQWVLQWKHSHULRGLQZKLFKWKH\DUHDSSURYHGE\WKH
Groups shareholders.

a) Share capital, share premium and Group reorganisation reserve

Number Group
of shares Share Share reorganisation
(authorised capital premium reserve
and issued) million million million
Balance as at 1 January 2015 367,819,247 1,998.1 5,157.6 (6,472.1)
Shares issued to employees exercising stock options (refer to Note 27) 322,050 2.0 3.1
Dividends (132.4)
Balance as at 31 December 2015 368,141,297 2,000.1 5,028.3 (6,472.1)
Shares issued to employees exercising stock options (refer to Note 27) 1,499,341 9.1 12.5
Cancellation of shares (3,000,000) (18.4) (40.1)
Dividends (146.1)
Balance as at 31 December 2016 366,640,638 1,990.8 4,854.6 (6,472.1)

The Group reorganisation reserve relates to the impact from adjusting share capital, share premium and treasury shares to depict the
respective statutory amounts of Coca-Cola HBC on 25 April 2013, together with the transaction costs incurred by the latter, relating primarily
to the re-domiciliation of the Group and its admission to listing in the premium segment of the London Stock Exchange, following successful
FRPSOHWLRQRIWKHYROXQWDU\VKDUHH[FKDQJHRHUUHIHUDOVRWR1RWH7KHVHWUDQVDFWLRQVZHUHWUHDWHGDVDUHRUJDQLVDWLRQRIDQH[LVWLQJ
entity that has not changed the substance of the reporting entity.
In 2015, the share capital of Coca-Cola HBC increased by the issue of 322,050 new ordinary shares following the exercise of stock options
pursuant to the Coca-Cola HBC AGs employees stock option plan. Total proceeds from the issuance of the shares under the stock option
SODQDPRXQWHGWRP
2Q-XQHWKH$QQXDO*HQHUDO0HHWLQJDGRSWHGDSURSRVDOIRUVKDUHEX\EDFNRIXSWRRUGLQDU\VKDUHVRI&RFD&ROD+%&
for the purpose of neutralising the dilution resulting from share issues under Coca-Cola HBCs equity compensation plans. The programme
ZDVFRPSOHWHGLQIXOOGXULQJIRUDFRQVLGHUDWLRQRIP2Q-XQHWKH$QQXDO*HQHUDO0HHWLQJDSSURYHGWKHSURSRVDOWR
reduce the share capital of Coca-Cola HBC AG by cancelling the 3,000,000 treasury shares acquired as part of the share buy-back programme
described above. The respective reduction of the share capital was completed in September 2016.
In 2016, the share capital of Coca-Cola HBC increased by the issue of 1,499,341 new ordinary shares following the exercise of stock options
pursuant to the Coca-Cola HBC AGs employees stock option plan. Total proceeds from the issuance of the shares under the stock option
SODQDPRXQWHGWRP
)ROORZLQJWKHDERYHFKDQJHVDVDW'HFHPEHUWKHVKDUHFDSLWDORIWKH*URXSDPRXQWHGWRPDQGFRPSULVHG
shares with a nominal value of CHF 6.70 each.

COC016_.indb 168 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 169

Strategic Report
b) Dividends
7KHVKDUHKROGHUVRI&RFD&ROD+%&$*DSSURYHGWKHGLYLGHQGGLVWULEXWLRQRISHUVKDUHDWWKH$QQXDO*HQHUDO0HHWLQJKHOGRQ
-XQH7KHWRWDOGLYLGHQGDPRXQWHGWRPDQGZDVSDLGRQ-XO\2IWKLVDQDPRXQWRIPUHODWHGWRVKDUHVKHOGE\
the Group.
7KHVKDUHKROGHUVRI&RFD&ROD+%&$*DSSURYHGWKHGLYLGHQGGLVWULEXWLRQRISHUVKDUHDWWKH$QQXDO*HQHUDO0HHWLQJKHOGRQ
-XQH7KHWRWDOGLYLGHQGDPRXQWHGWRPDQGZDVSDLGRQ-XO\2IWKLVDQDPRXQWRIPUHODWHGWRVKDUHVKHOGE\
the Group.

Corporate Governance
7KH%RDUGRI'LUHFWRUVRI&RFD&ROD+%&$*KDVSURSRVHGDGLYLGHQGSHUVKDUHLQUHVSHFWRI,IDSSURYHGE\WKHVKDUHKROGHUVRI
Coca-Cola HBC AG, this dividend will be paid in 2017.

c) Reserves
7KHUHVHUYHVRIWKH*URXSDW'HFHPEHUZHUHDVIROORZV
2016 2015
million PLOOLRQ
Treasury shares (70.7) (132.0)
Exchange equalisation reserve (801.8) (681.4)
Other reserves
Hedging reserve, net (55.3) (25.1)

Financial Statements
Tax-free reserve 163.8 163.8
Statutory reserves 26.9 20.0
Stock option reserve 87.2 79.1
$YDLODEOHIRUVDOHQDQFLDODVVHWVYDOXDWLRQUHVHUYHQHW 0.7 0.8
Other 21.8 21.8
Total other reserves 245.1 260.4
Total reserves (627.4) (553.0)

7UHDVXU\VKDUHV
Treasury shares held by the Group represent shares acquired following approval of share buy-back programmes, forfeited shares under

Swiss Statutory Reporting

the equity compensation plan operated by the Group as well as shares representing the initial ordinary shares of Coca-Cola HBC acquired
from Kar-Tess Holding. In September 2016 the 3,000,000 treasury shares, acquired as part of the 2015 share buy-back programme for a
FRQVLGHUDWLRQRIPZHUHFDQFHOOHGUHIHUDOVRWRVHFWLRQD6KDUHFDSLWDOVKDUHSUHPLXPDQG*URXSUHRUJDQLVDWLRQUHVHUYH$VDW
31 December 2016, 3,445,060 treasury shares were held by the Group.

([FKDQJHHTXDOLVDWLRQUHVHUYH
7KHH[FKDQJHHTXDOLVDWLRQUHVHUYHFRPSULVHVDOOIRUHLJQH[FKDQJHGLHUHQFHVDULVLQJIURPWKHWUDQVODWLRQRIWKHQDQFLDOVWDWHPHQWVRI
entities with functional currencies other than the Euro.

2WKHUUHVHUYHV
Hedging reserve
7KHKHGJLQJUHVHUYHUHHFWVFKDQJHVLQWKHIDLUYDOXHVRIGHULYDWLYHVDFFRXQWHGIRUDVFDVKRZKHGJHVQHWRIWKHGHIHUUHGWD[UHODWHGWR
Supplementary Information

such balances.

Tax-free and statutory reserves

The tax-free reserve includes investment amount exempt from tax according to incentive legislation, other tax-free income or income taxed
at source.
Statutory reserves are particular to the various countries in which the Group operates. The amount of statutory reserves of the parent
HQWLW\&RFD&ROD+%&$*LVQLO'XULQJDQDPRXQWRIPPZDVUHFODVVLHGWRVWDWXWRU\UHVHUYHVUHODWLQJWRWKH
establishment of additional reserves by the Groups subsidiaries.

Other reserves
Other reserves are particular to the various countries in which the Group operates.

Stock option reserve

The stock option reserve represents the cumulative charge to the income statement for employee stock option and performance share
awards (refer also to Note 27).

COC016_.indb 169 3/16/17 2:36 PM

 Coca-Cola HBC
170 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

26. Related party transactions

a) The Coca-Cola Company
$VDW'HFHPEHU7KH&RFD&ROD&RPSDQ\LQGLUHFWO\RZQHGRIWKHLVVXHGVKDUHFDSLWDORI&RFD&ROD+%&7KH
Coca-Cola Company considers Coca-Cola HBC to be a key bottler and has entered into bottlers agreements with Coca-Cola HBC in respect
of each of the Groups territories. All the bottlers agreements entered into by The Coca-Cola Company and Coca-Cola HBC are Standard
International Bottlers (SIB) agreements. The terms of the bottlers agreements grant Coca-Cola HBC the right to produce and the exclusive
right to sell and distribute the beverages of The Coca-Cola Company in each of the countries in which the Group operates. Consequently,
Coca-Cola HBC is obliged to purchase all concentrate for The Coca-Cola Companys beverages from The Coca-Cola Company, or its
designee, in the ordinary course of business. On 10 October 2012, The Coca-Cola Company agreed to extend the term of the bottlers
agreements for further 10 years until 2023.
The Coca-Cola Company owns or has applied for the trademarks that identify its beverages in each of the countries in which the Group
operates. The Coca-Cola Company has authorised Coca-Cola HBC and certain of its subsidiaries to use the trademark Coca-Cola in their
corporate names.
7KHEHORZWDEOHVXPPDULVHVWUDQVDFWLRQVZLWKWKH&RFD&ROD&RPSDQ\DQGLWVVXEVLGLDULHV
2016 2015
million PLOOLRQ
3XUFKDVHVRIFRQFHQWUDWHQLVKHGJRRGVDQGRWKHUPDWHULDOV 1,316.2 1,355.0
Net contributions received for marketing and promotional incentives 91.2 89.5
6DOHVRIQLVKHGJRRGVDQGUDZPDWHULDOV 10.8 9.1
Other income 4.4 6.6
Other expenses 3.5 4.1
Acquisition of coolers 3.2

The Coca-Cola Company makes discretionary marketing contributions to Coca-Cola HBCs operating subsidiaries. The participation in
shared marketing agreements is at The Coca-Cola Companys discretion and, where co-operative arrangements are entered into, marketing
expenses are shared. Such arrangements include the development of marketing programmes to promote The Coca-Cola Companys
beverages. Contributions received from The Coca-Cola Company for marketing and promotional incentives during the year amounted
WRPP&RQWULEXWLRQVPDGHE\7KH&RFD&ROD&RPSDQ\WR&RFD&ROD+%&IRUSULFHVXSSRUWDQGPDUNHWLQJDQG
SURPRWLRQDOFDPSDLJQVLQUHVSHFWRIVSHFLFFXVWRPHUVLQWRWDOOHGPP&RQWULEXWLRQVPDGHE\7KH&RFD&ROD
&RPSDQ\WR&RFD&ROD+%&IRUJHQHUDOPDUNHWLQJSURJUDPPHVLQWRWDOOHGPPZKLOHWKHFRQWULEXWLRQVRI
&RFD&ROD+%&WR7KH&RFD&ROD&RPSDQ\WRWDOOHGQLOP7KH&RFD&ROD&RPSDQ\KDVDOVRFXVWRPDULO\PDGHDGGLWLRQDO
payments for marketing and advertising directly to suppliers as part of the shared marketing arrangements. The proportion of direct and
indirect payments, made at The Coca-Cola Companys discretion, will not necessarily be the same from year to year.
Other income primarily comprises rent, facility and other items. Other expenses related to facility costs charged by The Coca-Cola Company
and shared costs included in operating expenses.
,Q'HFHPEHUWKH*URXSVROGRILWVVKDUHLQLWVVXEVLGLDU\1HSWQR9DQGHQ\V8$%WR(XURSHDQ5HIUHVKPHQWVDVXEVLGLDU\RI7&&&
(refer to Note 22).
$VDW'HFHPEHUWKH*URXSKDGDWRWDODPRXQWGXHIURP7KH&RFD&ROD&RPSDQ\RIPPDQGDWRWDODPRXQW
GXHWR7KH&RFD&ROD&RPSDQ\RIPLQFOXGLQJORDQVSD\DEOHRIQLODQGQRQFXUUHQWSD\DEOHVRIPLQFOXGHGLQOLQH2WKHUQRQ
FXUUHQWOLDELOLWLHVRIWKHFRQVROLGDWHGEDODQFHVKHHWWRWDOSD\DEOHVPZLWKORDQVSD\DEOHPDQGQRQFXUUHQW
SD\DEOHVQLO

COC016_.indb 170 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 171

Strategic Report
b) Frigoglass S.A. (Frigoglass), Kar-Tess Holding and AG Leventis (Nigeria) Plc
7UXDG9HUZDOWXQJV$*FXUUHQWO\LQGLUHFWO\RZQVRI)ULJRJODVVDQGRI$*/HYHQWLV1LJHULD3OFDQGDOVRLQGLUHFWO\FRQWUROV.DU
7HVV+ROGLQJZKLFKKROGVDSSUR[LPDWHO\RI&RFD&ROD+%&VWRWDOLVVXHGVKDUHFDSLWDO
7KHEHORZWDEOHVXPPDULVHVWUDQVDFWLRQVZLWK)ULJRJODVV.DU7HVV+ROGLQJDQG$*/HYHQWLV1LJHULD3OF
2016 2015
million PLOOLRQ
Purchases 123.0 120.5

Corporate Governance
Other expenses 21.4 19.3

Frigoglass, a company listed on the Athens Exchange, is a manufacturer of coolers, cooler parts, glass bottles, crowns and plastics. Frigoglass
KDVDFRQWUROOLQJLQWHUHVWLQ)ULJRJODVV,QGXVWULHV/LPLWHGDFRPSDQ\LQZKLFKWKH*URXSKDVDHHFWLYHLQWHUHVWWKURXJKLWVLQYHVWPHQW
in Nigerian Bottling Company Ltd. Furthermore, during 2015 the Group acquired through its investment in Nigerian Bottling Company Ltd a
HHFWLYHLQWHUHVWRI)ULJRJODVV:HVW$IULFD/WGDFRPSDQ\LQZKLFK)ULJRJODVVKDVDFRQWUROOLQJLQWHUHVW
The Group entered into a supply agreement with Frigoglass for the purchase of cooling equipment in 1999. The supply agreement was
extended in 2004, 2008 and, most recently, in 2013, on substantially similar terms. Coca-Cola HBC has the status of most favoured customer
RI)ULJRJODVVRQDQRQH[FOXVLYHEDVLVSURYLGHGWKDWLWREWDLQVDWOHDVWDWSULFHVZKLFKDUHQHJRWLDWHGRQDQDQQXDOEDVLVDQGZKLFKPXVW
be competitive) of its annual requirements for cooling equipment from Frigoglass. The current agreement expires on 31 December 2018.
'XULQJWKH*URXSPDGHSXUFKDVHVRIPPRIFRROHUVFRROHUSDUWVJODVVERWWOHVFURZQVDQGUDZDQGSODVWLFVIURP

Financial Statements
)ULJRJODVVDQGLWVVXEVLGLDULHVDQGLQFXUUHGPDLQWHQDQFHDQGRWKHUH[SHQVHVRIPP
$VDW'HFHPEHU&RFD&ROD+%&RZHGPPWRDQGZDVRZHGPPE\)ULJRJODVV
'XULQJWKH*URXSSXUFKDVHGPPRIQLVKHGJRRGVDQGRWKHUPDWHULDOVIURP$*/HYHQWLV1LJHULD3OF,QDGGLWLRQ
WKH*URXSDFTXLUHGPRISURSHUW\SODQWDQGHTXLSPHQWQLODQGLQFXUUHGUHQWDOH[SHQVHVRIPPDQGRWKHU
H[SHQVHVRIQLOPIURP$*/HYHQWLV1LJHULD3OF
$VDW'HFHPEHUWKH*URXSRZHGPPWRDQGZDVRZHGQLOPE\$*/HYHQWLV1LJHULD3OF

c) Other related parties

7KHEHORZWDEOHVXPPDULVHVWUDQVDFWLRQVZLWKRWKHUUHODWHGSDUWLHV
2016 2015

Swiss Statutory Reporting

million PLOOLRQ
Purchases 90.2 89.0
Other expenses 23.5 24.5

%HYHUDJH3DUWQHUV:RUOGZLGH%3:
BPW is a 50/50 joint venture between The Coca-Cola Company and Nestl. During 2016, the Group purchased inventory from BPW
DPRXQWLQJWRPP
$VDW'HFHPEHU&RFD&ROD+%&RZHGPPWRDQGZDVRZHGPPE\%3:

2WKHU
'XULQJWKH*URXSSXUFKDVHGPPRIUDZPDWHULDOVDQGQLVKHGJRRGVDQGDFTXLUHGPPRISURSHUW\
Supplementary Information

SODQWDQGHTXLSPHQWIURPRWKHUUHODWHGSDUWLHV)XUWKHUPRUHGXULQJWKH*URXSLQFXUUHGH[SHQVHVRIPPPDLQO\

related to maintenance services for cold drink equipment and installations of coolers, fountains, vending and merchandising equipment from
other related parties.
$W'HFHPEHUWKH*URXSRZHGPPWRDQGZDVRZHGPLQFOXGLQJORDQVUHFHLYDEOHRIPP
LQFOXGLQJORDQVUHFHLYDEOHRIPE\RWKHUUHODWHGSDUWLHV

COC016_.indb 171 3/16/17 2:36 PM

 Coca-Cola HBC
172 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

26. Related party transactions continued

d) Joint ventures
'XULQJWKH*URXSSXUFKDVHGPRIQLVKHGJRRGVPDQGDFTXLUHGQLOPRISURSHUW\SODQWDQG
HTXLSPHQWIURPMRLQWYHQWXUHV,QDGGLWLRQGXULQJWKH*URXSUHFRUGHGVDOHVRIQLVKHGJRRGVDQGUDZPDWHULDOVRIP
PWRMRLQWYHQWXUHV)XUWKHUPRUHWKH*URXSUHFRUGHGRWKHULQFRPHRIPPIURPMRLQWYHQWXUHV'XULQJ
WKH*URXSVROGSURSHUW\SODQWDQGHTXLSPHQWRIPQLOWRMRLQWYHQWXUHV
$VDW'HFHPEHUWKH*URXSRZHGPLQFOXGLQJORDQVSD\DEOHRIPPLQFOXGLQJORDQVSD\DEOHPWRDQG
ZDVRZHGPLQFOXGLQJORDQVUHFHLYDEOHRIPPLQFOXGLQJORDQVUHFHLYDEOHRIPE\MRLQWYHQWXUHV'XULQJWKH
*URXSUHFHLYHGGLYLGHQGVRIPPIURP%UHZLQYHVW6$*URXSRIFRPSDQLHVZKLFKDUHLQFOXGHGLQOLQH1HWUHFHLSWVIURP
LQYHVWPHQWVRIWKHFRQVROLGDWHGFDVKRZVWDWHPHQW

e) Directors
0U$QDVWDVVLV*'DYLG0U$QDVWDVLRV,/HYHQWLV0U&KULVWR/HYHQWLVbDQG0Ub5REHUW5\DQ5XGROSKbKDYHDOOEHHQQRPLQDWHGE\.DU7HVV
+ROGLQJWRWKH%RDUGRI&RFD&ROD+%&0U-RV2FWDYLR5H\HVDQG0U$KPHW&%R]HUKDYHEHHQQRPLQDWHGE\7&&&WRWKH%RDUGRI
Coca-Cola HBC. There have been no transactions between Coca-Cola HBC and the Directors except for remuneration (refer to Note 8).
7KHUHDUHQRVLJQLFDQWWUDQVDFWLRQVZLWKRWKHUUHODWHGSDUWLHVIRUWKH\HDUHQGHG'HFHPEHU

27. Share-based payments

Accounting policy
6WRFNRSWLRQDQGSHUIRUPDQFHVKDUHFRPSHQVDWLRQSODQV
Coca-Cola HBC issues equity-settled share-based payments to its senior managers in the form of an employee stock option plan and a
performance share plan.
7KHHPSOR\HHVWRFNRSWLRQSODQLVPHDVXUHGDWIDLUYDOXHDWWKHGDWHRIJUDQW)DLUYDOXHUHHFWVWKHSDUDPHWHUVRIWKHFRPSHQVDWLRQ
plan, the risk-free interest rate, the expected volatility, the dividend yield and the early exercise experience of the Groups plans. Expected
volatility is determined by calculating the historical volatility of Coca-Cola HBCs share price over previous years. The fair value determined
at the grant date is expensed on a straight-line basis over the vesting period.
7KHSHUIRUPDQFHVKDUHSODQRHUVDVSHFLHGQXPEHURISHUIRUPDQFHVKDUHDZDUGVWKDWYHVWWKUHH\HDUVDIWHUWKHJUDQW7KHIDLUYDOXH
LVGHWHUPLQHGDWWKHJUDQWGDWHDQGUHHFWVWKHSDUDPHWHUVRIWKHFRPSHQVDWLRQSODQWKHGLYLGHQG\LHOGDQGWKHZHLJKWHGDYHUDJHVKDUH
price. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period. At the end of each reporting
period the Group revises its estimates of the number of shares that are expected to vest based on non-market conditions, and recognises
the impact of the revision to original estimates, if any, in the income statement with a corresponding adjustment to equity.

(PSOR\HHVWRFNSXUFKDVHSODQ
The Group operates an employee stock purchase plan, the Employee Stock Purchase Plan, an equity compensation plan in which eligible
employees can participate. The Group makes contributions to the plan for participating employees and recognises expenses over the
vesting period of the contributed shares. No provision is made for any increase or decrease in value of these shares, as they will vest to
HPSOR\HHVDQGWKHULVNVDQGUHZDUGVRIXFWXDWLRQVRIWKHVKDUHSULFHDUHERUQHE\WKRVHHPSOR\HHV$Q\XQYHVWHGFRQWULEXWLRQVWRWKH
plan are recorded on the balance sheet as prepayments.

7KHFKDUJHLQFOXGHGLQHPSOR\HHFRVWVUHJDUGLQJVKDUHEDVHGSD\PHQWVIRUWKH\HDUVHQGHG'HFHPEHULVDQDO\VHGDVIROORZV
2016 2015
million PLOOLRQ
Stock option awards 3.7 8.7
Performance share awards 4.4 0.1
Employee Stock Purchase Plan 4.6 4.8
7RWDOVKDUHEDVHGSD\PHQWVFKDUJH 12.7 13.6

COC016_.indb 172 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 173

Strategic Report
Terms and conditions
6WRFNRSWLRQSODQ
Senior managers are granted awards of stock options, based on performance, potentiality and level of responsibility. Options are granted at
an exercise price equal to the closing price of the Companys shares trading on the London Stock Exchange on the day of the grant. Options
vest in one-third increments each year for three years and can be exercised for up to 10 years from the date of award. When the options are
exercised, the proceeds received, net of any transaction costs, are credited to share capital (at the nominal value) and share premium.

Corporate Governance
3HUIRUPDQFHVKDUHSODQ
During 2015 the Group adopted a performance share plan under which senior managers are granted performance share awards, which have
DWKUHH\HDUYHVWLQJSHULRGDQGDUHOLQNHGZLWK*URXSVSHFLFNH\SHUIRUPDQFHLQGLFDWRUV3HUIRUPDQFHVKDUHDZDUGVDUHJUDQWHGDWDSULFH
equal to the closing price of the Companys shares trading on the London Stock Exchange on the day of the grant.

(PSOR\HH6WRFN3XUFKDVH3ODQ
The Employee Stock Purchase Plan is administered by a Plan Administrator. Under the terms of this Plan, employees have the opportunity
WRLQYHVWWRRIWKHLUVDODU\LQRUGLQDU\&RFD&ROD+%&VKDUHVE\FRQWULEXWLQJWRWKH3ODQPRQWKO\&RFD&ROD+%&ZLOOPDWFKXSWRD
PD[LPXPRIRIWKHHPSOR\HHVVDODU\E\ZD\RIFRQWULEXWLRQ(PSOR\HUFRQWULEXWLRQVDUHXVHGWRSXUFKDVHPDWFKLQJVKDUHVRQDPRQWKO\
EDVLVRQWKHRSHQPDUNHWZKLFKLVWKH/RQGRQ6WRFN([FKDQJH0DWFKLQJVKDUHVYHVWRQH\HDUDIWHUWKHSXUFKDVH)RUIHLWHGVKDUHVPD\EH
used to meet Plan expenses or for any other purposes relevant to the Plan. Dividends received in respect of shares under the Plan are used

Financial Statements
to purchase additional shares and are immediately vested to the employees. Shares are held under the Plan Administrator. In order to adapt
the Plan to the Greek legal framework, Coca-Cola HBC matches the contribution of employees resident in Greece with an annual employer
FRQWULEXWLRQRIXSWRRIWKHHPSOR\HHVVDODU\LQ'HFHPEHURIHDFK\HDUZKLFKYHVWLPPHGLDWHO\

Stock option activity

The Group has not issued any new stock options in 2016 or 2015.
7KHIROORZLQJWDEOHVXPPDULVHVLQIRUPDWLRQUHJDUGLQJRXWVWDQGLQJVWRFNRSWLRQVH[HUFLVDEOHDW'HFHPEHU
Vesting Vesting dates Number of
Exercise price Exercise price status as at for further stock options
(EUR) (GBP) 31 Dec 2016 increments End of period outstanding
2005 December Grant 13.19 11.24 fully vested 31.12.20201 250,001

Swiss Statutory Reporting

2006 December Grant 16.37 13.95 fully vested 12.12.20211 397,500
2007 December Grant 26.41 22.51 fully vested 12.12.2017 1,147,200
2008 December Grant 9.02 7.69 fully vested 10.12.2018 719,100
2009 December Grant 15.70 13.38 fully vested 09.12.2019 1,142,000
2010 December Grant 19.31 16.46 fully vested 08.12.2020 1,492,501
0DUFK*UDQW 18.53 15.79 fully vested 15.03.2021 18,334
2011 December Grant 11.98 10.21 fully vested 15.12.2021 1,038,339
2013 June Grant 15.00 fully vested 20.06.2023 1,278,000
2013 December Grant 16.99 fully vested 09.12.2023 1,525,000
2014 December Grant 13.33 two thirds 10.12.2017 09.12.2024 1,532,834
Total 10,540,809
Supplementary Information

1. Relates to stock options granted under the previous stock option plan which expire in December 2020 and 2021 respectively.

COC016_.indb 173 3/16/17 2:36 PM

 Coca-Cola HBC
174 2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

27. Share-based payments continued

$VXPPDU\RIVWRFNRSWLRQDFWLYLW\LQXQGHUDOOSODQVLVDVIROORZV
Number Weighted* Weighted
of stock average average
options exercise price exercise price
2016 2016 (EUR) 2016 (GBP)
Outstanding at 1 January 12,337,506 19.76 14.56
Exercised (1,499,341) 14.56 12.40
Expired (271,687) 20.29 17.28
Forfeited (25,669) 16.82 14.32
Outstanding at 31 December 10,540,809 17.38 14.80
Exercisable at 31 December 10,019,308 17.46 14.87

$VXPPDU\RIVWRFNRSWLRQDFWLYLW\LQXQGHUDOOSODQVLVDVIROORZV
Number Weighted* Weighted
of stock average average
options exercise price exercise price
2015 2015 (EUR) 2015 (GBP)
Outstanding at 1 January 12,925,795 18.51 14.49
Exercised (322,050) 15.47 11.40
Expired (35,062) 22.52 16.60
Forfeited (231,177) 20.14 14.84
Outstanding at 31 December 12,337,506 19.76 14.56
Exercisable at 31 December 10,276,017 19.73 14.54
* For convenience purposes, the prices are translated with the closing exchange rate.

7RWDOSURFHHGVIURPWKHLVVXDQFHRIWKHVKDUHVXQGHUWKHVWRFNRSWLRQSODQLQDPRXQWHGWRPP
The weighted average remaining contractual life of share options outstanding under the stock option compensation plans at
'HFHPEHUZDV\HDUV\HDUV

Performance shares
$VXPPDU\RISHUIRUPDQFHVKDUHSODQDFWLYLW\LVDVIROORZV
Number of Number of
performance performance
shares shares
2016 2015
Outstanding at 1 January 652,159
Granted 716,269 652,159
Forfeited (4,436)
Outstanding at 31 December 1,363,992 652,159

7KHIDLUYDOXHIRUWKHSHUIRUPDQFHVKDUHSODQLVePeP7KHZHLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIHRI

SHUIRUPDQFHVKDUHVRXWVWDQGLQJXQGHUWKHSHUIRUPDQFHVKDUHSODQVDW'HFHPEHUZDV\HDUV\HDUV5HOHYDQWLQSXWV
LQWRWKHYDOXDWLRQDUHDVIROORZV
2016 2015
Weighted average share price 14.34 14.70
Dividend yield 2.0% 
Weighted average exercise period 3.0 years 3.3 years

COC016_.indb 174 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 175

Strategic Report
28. Contingencies
In relation to the Greek Competition Authoritys decision of 25 January 2002, one of Coca-Cola Hellenic Bottling Company S.A.s competitors
KDVOHGDODZVXLWDJDLQVW&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\6$FODLPLQJGDPDJHVLQDQDPRXQWRIP7KHFRXUWRIUVWLQVWDQFH
KHDUGWKHFDVHRQ-DQXDU\DQGVXEVHTXHQWO\UHMHFWHGWKHODZVXLW7KHSODLQWLKDVDSSHDOHGWKHMXGJHPHQWDQGRQ'HFHPEHU
WKH$WKHQV&RXUWRI$SSHDOVUHMHFWHGWKHSODLQWLVDSSHDO)ROORZLQJWKHVSLQR&RFD&ROD+%&*UHHFH6$,&VXEVWLWXWHG&RFD&ROD
Hellenic Bottling Company S.A. as defendant in this lawsuit. Coca-Cola HBC Greece S.A.I.C. has not provided for any losses related to this
FDVH7KHGHIHQGDQWKDVQRWOHGIRUDFHVVDWLRQRIWKHGHFLVLRQZLWKLQWKHUHOHYDQWGHDGOLQHVHWE\ODZWKHUHIRUHWKHGHFLVLRQRIWKH$WKHQV

Corporate Governance
&RXUWRI$SSHDOVLVQDODQGLUUHYRFDEOHDQGWKHFDVHKDVFORVHG2Q$SULOWKHVDPHSODLQWLOHGDQHZODZVXLWDJDLQVW&RFD&ROD
+HOOHQLF%RWWOLQJ&RPSDQ\6$IROORZLQJWKHVSLQR&RFD&ROD+%&*UHHFH6$,&FODLPLQJSD\PHQWRIPDVFRPSHQVDWLRQIRU
losses and moral damages for alleged anti-competitive commercial practices of Coca-Cola Hellenic Bottling Company S.A. between 1994
DQG7KHWZRODZVXLWVSDUWLDOO\RYHUODSLQWKHWLPHSHULRGIRUZKLFKGDPDJHVDUHVRXJKWE\WKHSODLQWL7KHKHDULQJRIWKHQHZODZVXLWLV
QRZVFKHGXOHGIRU-DQXDU\b&RFD&ROD+%&*UHHFH6$,&KDVQRWSURYLGHGIRUDQ\ORVVHVUHODWHGWRWKLVFDVH
On 1 February 2012, the Greek Competition Commission conducted an inspection of Coca-Cola Hellenic Bottling Company S.A.s (following
WKHVSLQR&RFD&ROD+%&*UHHFH6$,&RSHUDWLRQVDVSDUWRIDQLQYHVWLJDWLRQLQWRRXUFRPPHUFLDOSUDFWLFHVLQUHFHQW\HDUVLQWRWKH
VSDUNOLQJMXLFHDQGZDWHUFDWHJRULHV,Q$SULO&RFD&ROD+%&6$,&ZDVRFLDOO\LQIRUPHGE\WKH*UHHN&RPSHWLWLRQ&RPPLVVLRQ
on the closure of this audit. On 6 September 2016, the Greek Competition Commission initiated a new audit of Coca-Cola HBC Greece
S.A.I.C.s operations as part of a further investigation into certain commercial practices in the sparkling, juice and water categories.
Coca-Cola HBC Greece S.A.I.C. has a policy of strict compliance with Greek and EU competition law and it is co-operating fully with the Greek

Financial Statements
Competition Commission.
In 1992, our subsidiary Nigerian Bottling Company (NBC) acquired a manufacturing facility in Nigeria from Vacunak, a Nigerian company. In
9DFXQDNOHGDODZVXLWDJDLQVW1%&DOOHJLQJWKDWDUHSUHVHQWDWLYHRI1%&KDGRUDOO\DJUHHGWRUHVFLQGWKHVDOHDJUHHPHQWDQGLQVWHDG
enter into a lease agreement with Vacunak. As part of its lawsuit Vacunak sought compensation for rent and loss of business opportunities.
1%&GLVFRQWLQXHGDOOXVHRIWKHIDFLOLW\LQ2Q$XJXVW1%&UHFHLYHGWKHZULWWHQMXGJHPHQWRIWKH1LJHULDQFRXUWRIUVW
LQVWDQFHLVVXHGRQ-XQHSURYLGLQJIRUGDPDJHVRIDSSUR[LPDWHO\P1%&KDVOHGDQDSSHDODJDLQVWWKHMXGJHPHQW%DVHG
RQDGYLFHIURP1%&VRXWVLGHOHJDOFRXQVHOZHEHOLHYHWKDWLWLVXQOLNHO\WKDW1%&ZLOOVXHUPDWHULDOQDQFLDOORVVHVIURPWKLVFDVH:HKDYH
consequently not provided for any losses in relation to this case.
7KHWD[OLQJVRIWKH*URXSDQGLWVVXEVLGLDULHVDUHURXWLQHO\VXEMHFWHGWRDXGLWE\WD[DXWKRULWLHVLQPRVWRIWKHMXULVGLFWLRQVLQZKLFKWKH*URXS
conducts business. These audits may result in assessments of additional taxes. The Group provides additional tax in relation to the outcome
of such tax assessments, to the extent that a liability is probable and estimable.

Swiss Statutory Reporting

7KH*URXSLVDOVRLQYROYHGLQYDULRXVRWKHUOHJDOSURFHHGLQJV0DQDJHPHQWEHOLHYHVWKDWDQ\OLDELOLW\WRWKH*URXSWKDWPD\DULVHDVDUHVXOWRI
WKHVHSHQGLQJOHJDOSURFHHGLQJVZLOOQRWKDYHDPDWHULDODGYHUVHHHFWRQWKHUHVXOWVRIRSHUDWLRQVFDVKRZVRUWKHQDQFLDOSRVLWLRQRIWKH
Group taken as a whole.

Supplementary Information

COC016_.indb 175 3/16/17 2:36 PM

176 Coca-Cola HBC
2016 Integrated Annual Report

Notes to the Consolidated Financial Statements continued

29. Commitments
Accounting policy
Leases of property, plant and equipment not classified as finance leases are classified as operating leases. Rentals paid under operating
leases are charged to the income statement on a straight-line basis over the lease term.

a) Operating leases
The total of future minimum lease payments under non-cancellable operating leases at 31 December was as follows:
2016 2015
million million
Less than one year 33.3 44.2
Later than one year but less than five years 80.4 98.5
Later than five years 12.1 17.2
Future minimum lease payments 125.8 159.9

The total operating lease charges included within operating expenses for the years ended 31 December were as follows:

2016 2015
86.0m 98.0m

Plant and equipment: 61.7m Plant and equipment: 68.5m

Property: 24.3m Property: 29.5m

b) Capital commitments
As at 31 December 2016, the Group had capital commitments amounting to 84.9m (2015: 70.5m). Of this, 1.6m related to the Groups
share of the commitments arising from joint operations (2015: nil). The Groups share of the commitments arising from joint ventures are
disclosed in Note 15.

c) Long-term commitments
As at 31 December 2016 the Group had commitments to purchase raw materials and receive services amounting to 510.6m (2015: 542.8m).
Of this, 0.5m related to the Groups share of the commitments arising from joint operations (2015: nil). The Group share ofthe commitments
arising from joint ventures are disclosed in Note 15.

30. Post balance sheet events

During the first months of 2017 the Group incurred 1.2m of restructuring costs before tax in its Established markets. On 16 March 2017
the Board of Directors granted 824,074 performance share plan awards under the performance share plan, which have a three-year
vesting period.
 Coca-Cola HBC
2016 Integrated Annual Report 177

Swiss Statutory Reporting

Strategic Report
178 5HSRUWRIWKHVWDWXWRU\DXGLWRURQ&RFD&ROD+%&$*VFRQVROLGDWHGQDQFLDOVWDWHPHQWV
184 5HSRUWRIWKHVWDWXWRU\DXGLWRURQ&RFD&ROD+%&$*VQDQFLDOVWDWHPHQWV
187 &RFD&ROD+%&$*VQDQFLDOVWDWHPHQWV
197 5HSRUWRIWKHVWDWXWRU\DXGLWRURQWKH6WDWXWRU\5HPXQHUDWLRQ5HSRUW
198 6WDWXWRU\5HPXQHUDWLRQ5HSRUW

Corporate Governance
Financial Statements
Swiss Statutory Reporting
Supplementary Information

COC016_.indb 177 3/16/17 2:36 PM

 Coca-Cola HBC
178 2016 Integrated Annual Report

Swiss Statutory Reporting continued

Report of the statutory auditor

to the General Meeting of
Coca-Cola HBC AG
Steinhausen/Zug

5HSRUWRQWKHDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
Opinion
:HKDYHDXGLWHGWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRI&RFD&ROD+%&$*DQGLWVVXEVLGLDULHVWKH*URXSZKLFKFRPSULVHWKH
&RQVROLGDWHG%DODQFH6KHHWDVDW'HFHPEHUDQGWKH&RQVROLGDWHG,QFRPH6WDWHPHQW&RQVROLGDWHG6WDWHPHQWRI&RPSUHKHQVLYH
,QFRPH&RQVROLGDWHG6WDWHPHQWRI&KDQJHVLQ(TXLW\DQG&RQVROLGDWHG&DVK)ORZ6WDWHPHQWIRUWKH\HDUWKHQHQGHGDQG1RWHVWRWKH
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVLQFOXGLQJDVXPPDU\RIVLJQLFDQWDFFRXQWLQJSROLFLHV
,QRXURSLQLRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVSDJHVWRJLYHDWUXHDQGIDLUYLHZRIWKHFRQVROLGDWHGQDQFLDOSRVLWLRQRIWKH
*URXSDVDW'HFHPEHUDQGLWVFRQVROLGDWHGQDQFLDOSHUIRUPDQFHDQGLWVFRQVROLGDWHGFDVKRZVIRUWKH\HDUWKHQHQGHGLQ
DFFRUGDQFHZLWKWKH,QWHUQDWLRQDO)LQDQFLDO5HSRUWLQJ6WDQGDUGV,)56DQGFRPSO\ZLWK6ZLVVODZ

Basis for opinion

:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWK6ZLVVODZ,QWHUQDWLRQDO6WDQGDUGVRQ$XGLWLQJ,6$VDQG6ZLVV$XGLWLQJ6WDQGDUGV2XUUHVSRQVLELOLWLHV
XQGHUWKRVHSURYLVLRQVDQGVWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH$XGLWRUVUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHFRQVROLGDWHGQDQFLDO
VWDWHPHQWVVHFWLRQRIRXUUHSRUW
:HDUHLQGHSHQGHQWRIWKH*URXSLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6ZLVVODZDQGWKHUHTXLUHPHQWVRIWKH6ZLVVDXGLWSURIHVVLRQDVZHOODV
WKH,(6%$&RGHRI(WKLFVIRU3URIHVVLRQDO$FFRXQWDQWVDQGZHKDYHIXOOOHGRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHVH
UHTXLUHPHQWV:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXURSLQLRQ

Our audit approach

Overview Overall Group materiality: PLOOLRQ
:HDXGLWHGWKHFRPSOHWHQDQFLDOLQIRUPDWLRQRIWKH&RPSDQ\DQGIRUVXEVLGLDU\XQGHUWDNLQJVLQ
FRXQWULHV
Materiality 7DNHQWRJHWKHUWKHXQGHUWDNLQJVRIZKLFKDQDXGLWRIWKHLUFRPSOHWHQDQFLDOLQIRUPDWLRQZDVSHUIRUPHG
DFFRXQWHGIRURIFRQVROLGDWHGQHWVDOHVUHYHQXHRIFRQVROLGDWHGSURWEHIRUHWD[DQGRI
FRQVROLGDWHGWRWDODVVHWVRIWKH*URXS
:HDOVRFRQGXFWHGVSHFLFDXGLWSURFHGXUHVDQGDQDO\WLFDOUHYLHZSURFHGXUHVIRURWKHU
Group *URXSXQGHUWDNLQJVDQGIXQFWLRQV
scoping
$VNH\DXGLWPDWWHUVWKHIROORZLQJDUHDVRIIRFXVKDYHEHHQLGHQWLHG
*RRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVLPSDLUPHQWDVVHVVPHQW
8QFHUWDLQWD[SRVLWLRQV
Key audit 3URYLVLRQVDQGFRQWLQJHQWOLDELOLWLHV
matters

COC016_.indb 178 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
Audit scope
:HWDLORUHGWKHVFRSHRIRXUDXGLWLQRUGHUWRSHUIRUPVXFLHQWZRUNWRHQDEOHXVWRSURYLGHDQRSLQLRQRQWKHFRQVROLGDWHGQDQFLDO
VWDWHPHQWVDVDZKROHWDNLQJLQWRDFFRXQWWKHJHRJUDSKLFVWUXFWXUHRIWKH*URXSWKHDFFRXQWLQJSURFHVVHVDQGFRQWUROVDQGWKHLQGXVWU\LQ
ZKLFKWKH*URXSRSHUDWHV
7KH*URXSRSHUDWHVWKURXJKLWVWUDGLQJVXEVLGLDU\XQGHUWDNLQJVLQFRXQWULHVDVVHWRXWRQSDJHRIWKH,QWHJUDWHG$QQXDO5HSRUW
7KHSURFHVVLQJRIWKHDFFRXQWLQJHQWULHVIRUWKHVHHQWLWLHVLVODUJHO\FHQWUDOLVHGLQDVKDUHGVHUYLFHVFHQWUHLQ%XOJDULDH[FHSWIRUWKH
VXEVLGLDU\XQGHUWDNLQJVLQ5XVVLD8NUDLQH%HODUXVDQG$UPHQLDZKLFKSURFHVVWKHLUDFFRXQWLQJHQWULHVORFDOO\7KH*URXSDOVRRSHUDWHVD

Corporate Governance
FHQWUDOLVHGWUHDVXU\IXQFWLRQLQWKH1HWKHUODQGVDQGLQ*UHHFHDQGDFHQWUDOLVHGSURFXUHPHQWIXQFWLRQLQ$XVWULD:HFRQVLGHUHGWKHQDWXUHRI
WKHZRUNWKDWQHHGHGWREHSHUIRUPHGRQWKHVHHQWLWLHVDQGIXQFWLRQVE\XVDVWKHJURXSHQJDJHPHQWWHDPDQGE\FRPSRQHQWDXGLWRUV
IURPRWKHU3Z&QHWZRUNUPV:KHUHZRUNZDVSHUIRUPHGE\FRPSRQHQWDXGLWRUVZHGHWHUPLQHGWKHOHYHORILQYROYHPHQWZHQHHGHGWR
KDYHLQWKHDXGLWZRUNDWWKRVHHQWLWLHVRUIXQFWLRQVWREHDEOHWRFRQFOXGHZKHWKHUDSSURSULDWHDXGLWHYLGHQFHKDGEHHQREWDLQHGDVDEDVLV
IRURXURSLQLRQRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVDZKROH
%DVHGRQWKHQDQFLDOVLJQLFDQFHWRWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDQGLQOLJKWRIWKHNH\DXGLWPDWWHUVDVQRWHGDERYHZHLGHQWLHG
VXEVLGLDU\XQGHUWDNLQJVLQFRXQWULHVLQFOXGLQJWKHWUDGLQJVXEVLGLDU\XQGHUWDNLQJVLQ5XVVLD1LJHULDDQG,WDO\ZKLFKLQRXUYLHZUHTXLUHGDQ
DXGLWRIWKHLUFRPSOHWHQDQFLDOLQIRUPDWLRQ)XUWKHUPRUHWKH&RPSDQ\VFRPSOHWHQDQFLDOLQIRUPDWLRQZDVVXEMHFWWRDXGLW6SHFLFDXGLW
SURFHGXUHVRQFHUWDLQEDODQFHVDQGWUDQVDFWLRQVZHUHDOVRSHUIRUPHGRQVXEVLGLDU\XQGHUWDNLQJVLQFRXQWULHVMRLQWYHQWXUHDQGWKH
FRUSRUDWHVHUYLFHFHQWUHVLQ*UHHFHDQG$XVWULD,QDGGLWLRQDXGLWSURFHGXUHVZHUHSHUIRUPHGZLWKUHVSHFWWRWKHFHQWUDOLVHGWUHDVXU\
IXQFWLRQE\WKHJURXSHQJDJHPHQWWHDPDQGE\WKHFRPSRQHQWDXGLWWHDPLQ$XVWULDDVUHJDUGVWRWKHFHQWUDOLVHGSURFXUHPHQWIXQFWLRQ

Financial Statements
7KHJURXSHQJDJHPHQWWHDPDOVRSHUIRUPHGDQDO\WLFDOUHYLHZDQGRWKHUSURFHGXUHVRQEDODQFHVDQGWUDQVDFWLRQVRIVXEVLGLDU\XQGHUWDNLQJV
QRWFRYHUHGE\WKHSURFHGXUHVGHVFULEHGDERYH
2XUJURXSHQJDJHPHQWWHDPVLQYROYHPHQWZLWKUHVSHFWWRDXGLWZRUNSHUIRUPHGE\FRPSRQHQWDXGLWRUVLQFOXGHGVLWHYLVLWVWR5XVVLD
1LJHULD,WDO\6ZLW]HUODQG%XOJDULDDQG*UHHFHFRQIHUHQFHFDOOVZLWKFRPSRQHQWDXGLWWHDPVPHHWLQJVZLWKORFDOPDQDJHPHQWUHYLHZRI
FRPSRQHQWDXGLWRUZRUNSDSHUVDWWHQGDQFHDWFRPSRQHQWDXGLWFOHDUDQFHPHHWLQJVDQGRWKHUIRUPVRILQWHUDFWLRQVDVFRQVLGHUHG
QHFHVVDU\GHSHQGLQJRQWKHVLJQLFDQFHRIWKHFRPSRQHQWDQGWKHH[WHQWRIDFFRXQWLQJDQGDXGLWLVVXHVDULVLQJ7KHJURXSHQJDJHPHQW
WHDPZDVDOVRUHVSRQVLEOHIRUSODQQLQJGHVLJQLQJDQGRYHUVHHLQJWKHDXGLWSURFHGXUHVSHUIRUPHGDWWKHVKDUHGVHUYLFHVFHQWUHLQ%XOJDULD
7KH*URXSFRQVROLGDWLRQQDQFLDOVWDWHPHQWGLVFORVXUHVDQGDQXPEHURIDUHDVRIVLJQLFDQWMXGJHPHQWLQFOXGLQJJRRGZLOODQGLQWDQJLEOH
DVVHWVPDWHULDOSURYLVLRQVDQGFRQWLQJHQWOLDELOLWLHVZHUHDXGLWHGE\WKHJURXSHQJDJHPHQWWHDP:HDOVRSHUIRUPHGZRUNFHQWUDOO\RQ,7
JHQHUDOFRQWUROV:HKHOGDWZRGD\DXGLWSODQQLQJZRUNVKRSLQ*UHHFHIRFXVLQJRQSODQQLQJDQGULVNDVVHVVPHQWDFWLYLWLHV7KLVDXGLWSODQQLQJ
ZRUNVKRSZDVDWWHQGHGE\WKHFRPSRQHQWWHDPVUHVSRQVLEOHIRUWKHVXEVLGLDULHVUHTXLULQJDQDXGLWRIWKHLUFRPSOHWHQDQFLDOLQIRUPDWLRQ

Swiss Statutory Reporting

%DVHGRQWKHDERYHWKHXQGHUWDNLQJVRIZKLFKDQDXGLWRIWKHFRPSOHWHQDQFLDOLQIRUPDWLRQZDVSHUIRUPHGDFFRXQWHGIRURI
FRQVROLGDWHGQHWVDOHVUHYHQXHRIFRQVROLGDWHGSURWEHIRUHWD[DQGRIFRQVROLGDWHGWRWDODVVHWVRIWKH*URXS

Supplementary Information

COC016_.indb 179 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

Materiality
7KHVFRSHRIRXUDXGLWZDVLQXHQFHGE\RXUDSSOLFDWLRQRIPDWHULDOLW\2XUDXGLWRSLQLRQDLPVWRSURYLGHUHDVRQDEOHDVVXUDQFHWKDWWKH
FRQVROLGDWHGQDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW0LVVWDWHPHQWVPD\DULVHGXHWRIUDXGRUHUURU7KH\DUHFRQVLGHUHG
PDWHULDOLILQGLYLGXDOO\RULQDJJUHJDWHWKH\FRXOGUHDVRQDEO\EHH[SHFWHGWRLQXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVWDNHQRQWKHEDVLVRI
WKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
%DVHGRQRXUSURIHVVLRQDOMXGJHPHQWZHGHWHUPLQHGFHUWDLQTXDQWLWDWLYHWKUHVKROGVIRUPDWHULDOLW\LQFOXGLQJWKHRYHUDOO*URXSPDWHULDOLW\IRU
WKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVDZKROHDVVHWRXWLQWKHWDEOHEHORZ7KHVHWRJHWKHUZLWKTXDOLWDWLYHFRQVLGHUDWLRQVKHOSHGXVWR
GHWHUPLQHWKHVFRSHRIRXUDXGLWDQGWKHQDWXUHWLPLQJDQGH[WHQWRIRXUDXGLWSURFHGXUHVDQGWRHYDOXDWHWKHHHFWRIPLVVWDWHPHQWVERWK
LQGLYLGXDOO\DQGLQDJJUHJDWHRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVDZKROH
Overall Group materiality
How we determined it
Rationale for the materiality
benchmark applied
PLOOLRQURXQGHG
RISURWEHIRUHWD[
:HFKRVHSURWEHIRUHWD[DVWKHEHQFKPDUNEHFDXVHLQRXUYLHZLWLVRQHRIWKHSULQFLSDOPHDVXUHV
FRQVLGHUHGE\XVHUVDQGLVDJHQHUDOO\DFFHSWHGEHQFKPDUN:HFKRVHZKLFKLVZLWKLQWKHUDQJHRI
DFFHSWDEOHTXDQWLWDWLYHPDWHULDOLW\WKUHVKROGVLQJHQHUDOO\DFFHSWHGDXGLWLQJSUDFWLFH

:HDJUHHGZLWKWKH$XGLWDQG5LVN&RPPLWWHHWKDWZHZRXOGUHSRUWWRWKHPPLVVWDWHPHQWVDERYHLGHQWLHGGXULQJRXUDXGLWDV
ZHOODVDQ\PLVVWDWHPHQWVEHORZWKDWDPRXQWZKLFKLQRXUYLHZZDUUDQWHGUHSRUWLQJIRUTXDOLWDWLYHUHDVRQV

.H\DXGLWPDWWHUV
.H\DXGLWPDWWHUVDUHWKRVHPDWWHUVWKDWLQRXUSURIHVVLRQDOMXGJHPHQWZHUHRIPRVWVLJQLFDQFHLQRXUDXGLWRIWKHFRQVROLGDWHGQDQFLDO
VWDWHPHQWVRIWKHFXUUHQWSHULRG7KHVHPDWWHUVZHUHDGGUHVVHGLQWKHFRQWH[WRIRXUDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVD
ZKROHDQGLQIRUPLQJRXURSLQLRQWKHUHRQDQGZHGRQRWSURYLGHDVHSDUDWHRSLQLRQRQWKHVHPDWWHUV

COC016_.indb 180 3/16/17 2:36 PM


*RRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVLPSDLUPHQWDVVHVVPHQW
Key audit matter
5HIHUWR1RWHIRULQWDQJLEOHDVVHWVLQFOXGLQJJRRGZLOO
*RRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVDVDW'HFHPEHU
DPRXQWWRPLOOLRQDQGPLOOLRQUHVSHFWLYHO\
7KHDERYHQRWHGDPRXQWVKDYHEHHQDOORFDWHGWRLQGLYLGXDO
Coca-Cola HBC
2016 Integrated Annual Report 181
Strategic Report
How our audit addressed the key audit matter
:HHYDOXDWHGWKHSURFHVVE\ZKLFKPDQDJHPHQWSUHSDUHGWKH&*8
YDOXHLQXVHFDOFXODWLRQVDQGFRPSDUHGWKHPWRWKHODWHVWEXGJHW
DSSURYHGE\WKH%RDUGRI'LUHFWRUV:HDVVHVVHGWKHTXDOLW\RIWKH
EXGJHWLQJSURFHVVE\FRPSDULQJWKHSULRU\HDUEXGJHWZLWKDFWXDO
GDWD1RPDWHULDOH[FHSWLRQVZHUHQRWHGIURPRXUHYDOXDWLRQ
FDVKJHQHUDWLQJXQLWV&*8V7KHLPSDLUPHQWDVVHVVPHQWLV

Corporate Governance
'HSOR\LQJRXUYDOXDWLRQVSHFLDOLVWVZHFKDOOHQJHGPDQDJHPHQWV
SHUIRUPHGDWOHDVWDQQXDOO\DQGUHOLHVRQWKHFDOFXODWLRQRIDYDOXHLQ
DQDO\VLVDURXQGWKHNH\GULYHUVRIFDVKRZIRUHFDVWVLQFOXGLQJSULFH
XVHIRUHDFK&*8
LQFUHDVHVVKRUWWHUPDQGORQJWHUPYROXPHJURZWKDQGWKHOHYHORI
7KLVDUHDZDVDNH\PDWWHUIRURXUDXGLWGXHWRWKHVL]HRIJRRGZLOO LQSXWFRVWVE\FRPSDULQJWKHPZLWKHLWKHUWKH*URXSVKLVWRULFDO
DQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVDQGEHFDXVHWKHGHWHUPLQDWLRQ LQIRUPDWLRQRUPDUNHWGDWDDVDSSURSULDWH:HDOVRHYDOXDWHGWKH
RIZKHWKHUHOHPHQWVRIJRRGZLOODQGRILQGHQLWHOLYHGLQWDQJLEOH DSSURSULDWHQHVVRIRWKHUNH\DVVXPSWLRQVLQFOXGLQJGLVFRXQWUDWHV
DVVHWVDUHLPSDLUHGLQYROYHVFRPSOH[DQGVXEMHFWLYHHVWLPDWHVDQG DQGIRUHLJQH[FKDQJHUDWHVE\FRPSDULQJWKHPWRUHOHYDQWPDUNHW
MXGJHPHQWVE\PDQDJHPHQWDERXWWKHIXWXUHUHVXOWVRIWKH&*8V GDWD:HIRXQGWKHDVVXPSWLRQVWREHFRQVLVWHQWDQGLQOLQHZLWK
7KHVHHVWLPDWHVDQGMXGJHPHQWVLQFOXGHDVVXPSWLRQVVXUURXQGLQJ RXUH[SHFWDWLRQV
UHYHQXHJURZWKUDWHVLQSXWFRVWVIRUHLJQH[FKDQJHUDWHVDQG
:HDOVRSHUIRUPHGVHQVLWLYLW\DQDO\VHVRQWKHNH\GULYHUVRIFDVKRZ
GLVFRXQWUDWHV
IRUHFDVWVIRUWKH&*8VZLWKVLJQLFDQWEDODQFHVRIJRRGZLOODQG
)XUWKHUPRUHPDFURHFRQRPLFYRODWLOLW\FRPSHWLWRUDFWLYLW\DQG

UHJXODWRU\VFDOGHYHORSPHQWVFDQDGYHUVHO\DHFWHDFK&*8
DQGSRWHQWLDOO\WKHFDUU\LQJDPRXQWRIJRRGZLOODQGLQGHQLWHOLYHG
LQWDQJLEOHDVVHWV
1RLPSDLUPHQWFKDUJHZDVUHFRUGHGLQ:HQRWHKRZHYHU
WKDWJRRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWVKHOGE\0XOWRQ
=$2&*8DQGWKH1LJHULD&*8UHPDLQVHQVLWLYHWRFKDQJHVLQ
WKHNH\GULYHUVRIFDVKRZIRUHFDVWVJLYHQWKHPDFURHFRQRPLF
YRODWLOLW\LQ5XVVLDDQG1LJHULDUHVSHFWLYHO\
Financial Statements
LQGHQLWHOLYHGLQWDQJLEOHDVVHWVDVZHOODVIRU&*8VZLWKPDUJLQDO
KHDGURRPLQFOXGLQJWKHJRRGZLOODQGLQGHQLWHOLYHGLQWDQJLEOHDVVHWV
KHOGE\0XOWRQ=$2&*8DQGWKH1LJHULD&*8
$VDUHVXOWRIRXUZRUNZHIRXQGWKDWWKHGHWHUPLQDWLRQE\
PDQDJHPHQWWKDWQRLPSDLUPHQWZDVUHTXLUHGIRUJRRGZLOODQG
LQGHQLWHOLYHGLQWDQJLEOHDVVHWVZDVVXSSRUWHGE\UHDVRQDEOH
DVVXPSWLRQV0DQDJHPHQWKDVIXUWKHUPRUHGLVFORVHGUHOHYDQW
VHQVLWLYLW\DQDO\VHVLQ1RWH

Uncertain tax positions

Swiss Statutory Reporting

Key audit matter How our audit addressed the key audit matter
5HIHUWR1RWHIRUWD[DWLRQDQG1RWHIRUFRQWLQJHQFLHV ,QFRQMXQFWLRQZLWKRXUWD[VSHFLDOLVWVZHHYDOXDWHGPDQDJHPHQWV
MXGJHPHQWVLQUHVSHFWRIHVWLPDWHVRIWD[H[SRVXUHVDQG
7KH*URXSRSHUDWHVLQDFRPSOH[PXOWLQDWLRQDOWD[HQYLURQPHQW
FRQWLQJHQFLHVLQRUGHUWRDVVHVVWKHDGHTXDF\RIWKH*URXSV
ZKLFKJLYHVULVHWRXQFHUWDLQWD[SRVLWLRQVLQUHODWLRQWR
WD[SURYLVLRQV
FRUSRUDWLRQWD[WUDQVIHUSULFLQJDQGLQGLUHFWWD[HV
,QRUGHUWRXQGHUVWDQGDQGHYDOXDWHPDQDJHPHQWVMXGJHPHQWVZH
*LYHQWKHQXPEHURIMXGJHPHQWVLQYROYHGLQHVWLPDWLQJWKHSURYLVLRQV
FRQVLGHUHGWKHVWDWXVRIFXUUHQWWD[DXWKRULW\DXGLWVDQGHQTXLULHVWKH
UHODWLQJWRXQFHUWDLQWD[SRVLWLRQVDQGWKHFRPSOH[LWLHV
RXWFRPHRISUHYLRXVWD[DXWKRULW\DXGLWVMXGJHPHQWDOSRVLWLRQVWDNHQ
RIGHDOLQJZLWKWD[UXOHVDQGUHJXODWLRQVLQQXPHURXVMXULVGLFWLRQV
LQWD[UHWXUQVDQGFXUUHQW\HDUHVWLPDWHVDQGUHFHQWGHYHORSPHQWVLQ
WKLVZDVFRQVLGHUHGDVDNH\DXGLWPDWWHU
WKHWD[HQYLURQPHQWVLQZKLFKWKH*URXSRSHUDWHV)URPWKHHYLGHQFH
REWDLQHGDQGLQWKHFRQWH[WRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
Supplementary Information

WDNHQDVDZKROHZHFRQVLGHUWKHSURYLVLRQVLQUHODWLRQWRXQFHUWDLQWD[
SRVLWLRQVDVDSSURSULDWH

COC016_.indb 181 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

3URYLVLRQVDQGFRQWLQJHQWOLDELOLWLHV
Key audit matter
5HIHUWR1RWHIRUSURYLVLRQVDQG1RWHIRUFRQWLQJHQFLHV
7KH*URXSIDFHVDQXPEHURIWKUHDWHQHGDQGDFWXDOOHJDODQG
UHJXODWRU\SURFHHGLQJVLQFOXGLQJOHJDOSURFHHGLQJVZLWKWKH*UHHN
&RPSHWLWLRQ&RPPLVVLRQ7KHOHYHORISURYLVLRQLQJDQGRUWKHOHYHO
RIGLVFORVXUHUHTXLUHGLQYROYHVDKLJKOHYHORIMXGJHPHQWUHVXOWLQJLQ
SURYLVLRQVDQGFRQWLQJHQWOLDELOLWLHVEHLQJFRQVLGHUHGDVDNH\
DXGLWPDWWHU
How our audit addressed the key audit matter
:HHYDOXDWHGWKHGHVLJQDQGLPSOHPHQWDWLRQRIFRQWUROVLQUHVSHFWRI
OLWLJDWLRQDQGUHJXODWRU\SURFHGXUHVDQGQRPDWHULDOH[FHSWLRQV
ZHUHQRWHG
2XUSURFHGXUHVLQFOXGHGWKHIROORZLQJ
ZKHUHUHOHYDQWUHDGLQJH[WHUQDOOHJDODGYLFHREWDLQHGE\
PDQDJHPHQW
GLVFXVVLQJRSHQPDWWHUVZLWKWKH*URXSJHQHUDOFRXQVHO
PHHWLQJZLWKORFDOPDQDJHPHQWDQGUHDGLQJVXEVHTXHQW
FRUUHVSRQGHQFH
DVVHVVLQJDQGFKDOOHQJLQJPDQDJHPHQWVFRQFOXVLRQVWKURXJK
XQGHUVWDQGLQJSUHFHGHQWVVHWLQVLPLODUFDVHVDQG
circularising relevant third-party legal representatives and follow up
GLVFXVVLRQVZKHUHDSSURSULDWHRQFHUWDLQPDWHULDOFDVHV
%DVHGRQWKHHYLGHQFHREWDLQHGZKLOVWQRWLQJWKHLQKHUHQW
XQFHUWDLQW\ZLWKVXFKOHJDODQGUHJXODWRU\PDWWHUVZHGHWHUPLQHG
WKHOHYHORISURYLVLRQLQJDVDW'HFHPEHUWREHDSSURSULDWH
We assessed the appropriateness of the related disclosures in
1RWHDQGFRQVLGHUHGWKHVHWREHUHDVRQDEOH

2WKHULQIRUPDWLRQLQWKHDQQXDOUHSRUW
7KH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHRWKHULQIRUPDWLRQLQWKHDQQXDOUHSRUW7KHRWKHULQIRUPDWLRQFRPSULVHVDOOLQIRUPDWLRQLQFOXGHG
LQWKHDQQXDOUHSRUWEXWGRHVQRWLQFOXGHWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVWKHVWDQGDORQHQDQFLDOVWDWHPHQWVRI&RFD&ROD+%&$*
DQGRXUDXGLWRUVUHSRUWVWKHUHRQ
2XURSLQLRQRQWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVGRHVQRWFRYHUWKHRWKHULQIRUPDWLRQLQWKHDQQXDOUHSRUWDQGZHGRQRWH[SUHVVDQ\
IRUPRIDVVXUDQFHFRQFOXVLRQWKHUHRQ
,QFRQQHFWLRQZLWKRXUDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRXUUHVSRQVLELOLW\LVWRUHDGWKHRWKHULQIRUPDWLRQLQWKHDQQXDOUHSRUW
DQGLQGRLQJVRFRQVLGHUZKHWKHUWKHRWKHULQIRUPDWLRQLVPDWHULDOO\LQFRQVLVWHQWZLWKWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRURXU
NQRZOHGJHREWDLQHGLQWKHDXGLWRURWKHUZLVHDSSHDUVWREHPDWHULDOO\PLVVWDWHG,IEDVHGRQWKHZRUNZHKDYHSHUIRUPHGZHFRQFOXGHWKDW
WKHUHLVDPDWHULDOPLVVWDWHPHQWRIWKLVRWKHULQIRUPDWLRQZHDUHUHTXLUHGWRUHSRUWWKDWIDFW:HKDYHQRWKLQJWRUHSRUWLQWKLVUHJDUG

5HVSRQVLELOLWLHVRIWKH%RDUGRI'LUHFWRUVIRUWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
7KH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZLQDFFRUGDQFH
ZLWK,)56DQGWKHSURYLVLRQVRI6ZLVVODZDQGIRUVXFKLQWHUQDOFRQWURODVWKH%RDUGRI'LUHFWRUVGHWHUPLQHVLVQHFHVVDU\WRHQDEOHWKH
SUHSDUDWLRQRIFRQVROLGDWHGQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
,QSUHSDULQJWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVWKH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUDVVHVVLQJWKH*URXSVDELOLW\WRFRQWLQXHDVD
JRLQJFRQFHUQGLVFORVLQJDVDSSOLFDEOHPDWWHUVUHODWHGWRJRLQJFRQFHUQDQGXVLQJWKHJRLQJFRQFHUQEDVLVRIDFFRXQWLQJXQOHVVWKH
%RDUGRI'LUHFWRUVHLWKHULQWHQGVWROLTXLGDWHWKH*URXSRUWRFHDVHRSHUDWLRQVRUKDVQRUHDOLVWLFDOWHUQDWLYHEXWWRGRVR

COC016_.indb 182 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 183

Strategic Report
$XGLWRUVUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV
2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURPPDWHULDO
PLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRUVUHSRUWWKDWLQFOXGHVRXURSLQLRQ5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORI
DVVXUDQFHEXWLVQRWDJXDUDQWHHWKDWDQDXGLWFRQGXFWHGLQDFFRUGDQFHZLWK6ZLVVODZ,6$VDQG6ZLVV$XGLWLQJ6WDQGDUGVZLOODOZD\VGHWHFWD
PDWHULDOPLVVWDWHPHQWZKHQLWH[LVWV0LVVWDWHPHQWVFDQDULVHIURPIUDXGRUHUURUDQGDUHFRQVLGHUHGPDWHULDOLILQGLYLGXDOO\RULQWKH
DJJUHJDWHWKH\FRXOGUHDVRQDEO\EHH[SHFWHGWRLQXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVWDNHQRQWKHEDVLVRIWKHVHFRQVROLGDWHG
QDQFLDOVWDWHPHQWV

Corporate Governance
$IXUWKHUGHVFULSWLRQRIRXUUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVLVORFDWHGDWWKHZHEVLWHRI(;3(57VXLVVH
KWWSH[SHUWVXLVVHFKHQDXGLWUHSRUWIRUSXEOLFFRPSDQLHV7KLVGHVFULSWLRQIRUPVSDUWRIRXUDXGLWRUVUHSRUW

5HSRUWRQRWKHUOHJDODQGUHJXODWRU\UHTXLUHPHQWV
,QDFFRUGDQFHZLWKDUWLFOHDSDUDJUDSKLWHP&2DQG6ZLVV$XGLWLQJ6WDQGDUGZHFRQUPWKDWDQLQWHUQDOFRQWUROV\VWHPH[LVWVZKLFK
KDVEHHQGHVLJQHGIRUWKHSUHSDUDWLRQRIFRQVROLGDWHGQDQFLDOVWDWHPHQWVDFFRUGLQJWRWKHLQVWUXFWLRQVRIWKH%RDUGRI'LUHFWRUV
:HUHFRPPHQGWKDWWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWVVXEPLWWHGWR\RXEHDSSURYHG
3ULFHZDWHUKRXVH&RRSHUV$*

Financial Statements
Mike Foley Philipp Kegele
Audit expert
Auditor in charge

=ULFK0DUFK

Swiss Statutory Reporting

Supplementary Information

COC016_.indb 183 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

Report of the statutory auditor

to the General Meeting of
Coca-Cola HBC AG
Steinhausen/Zug

5HSRUWRQWKHDXGLWRIWKHQDQFLDOVWDWHPHQWV
Opinion
:HKDYHDXGLWHGWKHQDQFLDOVWDWHPHQWVRI&RFD&ROD+%&$*ZKLFKFRPSULVHWKH%DODQFHVKHHWDVDW'HFHPEHU
,QFRPHVWDWHPHQWDQG1RWHVWRWKHQDQFLDOVWDWHPHQWVSDJHVWRIRUWKH\HDUWKHQHQGHGLQFOXGLQJDVXPPDU\RIVLJQLFDQW
DFFRXQWLQJSROLFLHV
,QRXURSLQLRQWKHDFFRPSDQ\LQJQDQFLDOVWDWHPHQWVDVDW'HFHPEHUFRPSO\ZLWK6ZLVVODZDQGWKH&RPSDQ\VDUWLFOHV
RILQFRUSRUDWLRQ

Basis for opinion

:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWK6ZLVVODZDQG6ZLVV$XGLWLQJ6WDQGDUGV2XUUHVSRQVLELOLWLHVXQGHUWKRVHSURYLVLRQVDQG
VWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH$XGLWRUVUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHQDQFLDOVWDWHPHQWVVHFWLRQRIRXUUHSRUW
:HDUHLQGHSHQGHQWRIWKHHQWLW\LQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6ZLVVODZDQGWKHUHTXLUHPHQWVRIWKH6ZLVVDXGLWSURIHVVLRQDQGZH
KDYHIXOOOHGRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHVHUHTXLUHPHQWV:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLV
VXFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXURSLQLRQ

Our audit approach

Overview Overall materiality:&+)PLOOLRQ
:HWDLORUHGWKHVFRSHRIRXUDXGLWLQRUGHUWRSHUIRUPVXFLHQWZRUNWRHQDEOHXVWRSURYLGHDQRSLQLRQRQ
WKHQDQFLDOVWDWHPHQWVDVDZKROHWDNLQJLQWRDFFRXQWWKHVWUXFWXUHRIWKHHQWLW\WKHDFFRXQWLQJSURFHVVHV
DQGFRQWUROVDQGWKHLQGXVWU\LQZKLFKWKHHQWLW\RSHUDWHV
Materiality
$VNH\DXGLWPDWWHUWKHIROORZLQJDUHDRIIRFXVKDVEHHQLGHQWLHG
9DOXDWLRQRILQYHVWPHQWLQVXEVLGLDU\

Audit scope

Key audit
matters

Audit scope
:HGHVLJQHGRXUDXGLWE\GHWHUPLQLQJPDWHULDOLW\DQGDVVHVVLQJWKHULVNVRIPDWHULDOPLVVWDWHPHQWLQWKHQDQFLDOVWDWHPHQWV,QSDUWLFXODU
ZHFRQVLGHUHGZKHUHVXEMHFWLYHMXGJHPHQWVZHUHPDGHIRUH[DPSOHLQUHVSHFWRIVLJQLFDQWDFFRXQWLQJHVWLPDWHVWKDWLQYROYHGPDNLQJ
DVVXPSWLRQVDQGFRQVLGHULQJIXWXUHHYHQWVWKDWDUHLQKHUHQWO\XQFHUWDLQ$VLQDOORIRXUDXGLWVZHDOVRDGGUHVVHGWKHULVNRIPDQDJHPHQW
RYHUULGHRILQWHUQDOFRQWUROVLQFOXGLQJDPRQJRWKHUPDWWHUVFRQVLGHUDWLRQRIZKHWKHUWKHUHZDVHYLGHQFHRIELDVWKDWUHSUHVHQWHGDULVNRI
PDWHULDOPLVVWDWHPHQWGXHWRIUDXG

COC016_.indb 184 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
Materiality
7KHVFRSHRIRXUDXGLWZDVLQXHQFHGE\RXUDSSOLFDWLRQRIPDWHULDOLW\2XUDXGLWRSLQLRQDLPVWRSURYLGHUHDVRQDEOHDVVXUDQFHWKDWWKH
QDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW0LVVWDWHPHQWVPD\DULVHGXHWRIUDXGRUHUURU7KH\DUHFRQVLGHUHGPDWHULDOLI
LQGLYLGXDOO\RULQDJJUHJDWHWKH\FRXOGUHDVRQDEO\EHH[SHFWHGWRLQXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVWDNHQRQWKHEDVLVRIWKH
QDQFLDOVWDWHPHQWV
%DVHGRQRXUSURIHVVLRQDOMXGJHPHQWZHGHWHUPLQHGFHUWDLQTXDQWLWDWLYHWKUHVKROGVIRUPDWHULDOLW\LQFOXGLQJWKHRYHUDOOPDWHULDOLW\IRUWKH
QDQFLDOVWDWHPHQWVDVDZKROHDVVHWRXWLQWKHWDEOHEHORZ7KHVHWRJHWKHUZLWKTXDOLWDWLYHFRQVLGHUDWLRQVKHOSHGXVWRGHWHUPLQHWKH

Corporate Governance
VFRSHRIRXUDXGLWDQGWKHQDWXUHWLPLQJDQGH[WHQWRIRXUDXGLWSURFHGXUHVDQGWRHYDOXDWHWKHHHFWRIPLVVWDWHPHQWVERWKLQGLYLGXDOO\DQG
LQDJJUHJDWHRQWKHQDQFLDOVWDWHPHQWVDVDZKROH

Overall materiality &+)PLOOLRQ

How we determined it RIQHWDVVHWV
Rationale for the materiality :HFKRVHQHWDVVHWVDVWKHEHQFKPDUNEHFDXVHLQRXUYLHZLWLVWKHEHQFKPDUNZKLFKUHHFWVWKH
benchmark applied DFWXDOVXEVWDQFHRIWKHHQWLW\7KLVLVDJHQHUDOO\DFFHSWHGEHQFKPDUNIRUXOWLPDWHKROGLQJHQWLWLHV

5HSRUWRQNH\DXGLWPDWWHUVEDVHGRQWKHFLUFXODURIWKH)HGHUDO$XGLW2YHUVLJKW$XWKRULW\
.H\DXGLWPDWWHUVDUHWKRVHPDWWHUVWKDWLQRXUSURIHVVLRQDOMXGJHPHQWZHUHRIPRVWVLJQLFDQFHLQRXUDXGLWRIWKHQDQFLDOVWDWHPHQWVRI
WKHFXUUHQWSHULRG7KHVHPDWWHUVZHUHDGGUHVVHGLQWKHFRQWH[WRIRXUDXGLWRIWKHQDQFLDOVWDWHPHQWVDVDZKROHDQGLQIRUPLQJRXU

Financial Statements
RSLQLRQWKHUHRQDQGZHGRQRWSURYLGHDVHSDUDWHRSLQLRQRQWKHVHPDWWHUV

9DOXDWLRQRILQYHVWPHQWLQVXEVLGLDU\
Key audit matter
6HH1RWHDQGWRWKHQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\
for the Directors disclosures of the related accounting policy
DQGWKHGHWDLOHGLQIRUPDWLRQRQWKHYDOXDWLRQRIWKHLQYHVWPHQW
LQVXEVLGLDU\
,QYHVWPHQWVLQVXEVLGLDULHVDVDW'HFHPEHUDPRXQW
WR&+)P
7KHYDOXDWLRQRIWKHLQYHVWPHQWVLQVXEVLGLDULHVLVLQKHUHQWO\
How our audit addressed the key audit matter
:HHYDOXDWHGWKHSURFHVVE\ZKLFKPDQDJHPHQWSUHSDUHGLWV
YDOXHLQXVHFDOFXODWLRQVDQGFRPSDUHGWKHPWRWKHODWHVWEXGJHW
DSSURYHGE\WKH%RDUGRI'LUHFWRUV:HDVVHVVHGWKHTXDOLW\RIWKH
EXGJHWLQJSURFHVVE\FRPSDULQJWKHSULRU\HDUEXGJHWZLWKDFWXDO
GDWD1RPDWHULDOH[FHSWLRQVZHUHQRWHGIURPRXUHYDOXDWLRQ
'HSOR\LQJYDOXDWLRQVSHFLDOLVWVZHFKDOOHQJHGPDQDJHPHQWVDQDO\VLV
DURXQGWKHNH\GULYHUVRIFDVKRZIRUHFDVWVLQFOXGLQJSULFHLQFUHDVHV

Swiss Statutory Reporting

VKRUWWHUPDQGORQJWHUPYROXPHJURZWKDQGWKHOHYHORILQSXWFRVWV
MXGJHPHQWDODVLWUHOLHVRQIRUHFDVWVRIIXWXUHSURWDELOLW\DQG
E\FRPSDULQJWKHPZLWKHLWKHUWKH*URXSVKLVWRULFDOLQIRUPDWLRQRU
FDVKRZV0DFURHFRQRPLFYRODWLOLW\FRPSHWLWRUDFWLYLW\DQG
PDUNHWGDWDDVDSSURSULDWH:HDOVRHYDOXDWHGWKHDSSURSULDWHQHVVRI
UHJXODWRU\VFDOGHYHORSPHQWVFDQDGYHUVHO\DHFWHDFK
RWKHUNH\DVVXPSWLRQVLQFOXGLQJGLVFRXQWUDWHVDQGIRUHLJQH[FKDQJH
underlying cash-generating-unit and potentially the carrying
UDWHVE\FRPSDULQJWKHPWRUHOHYDQWPDUNHWGDWD:HIRXQGWKH
DPRXQWWKHWRWDOLQYHVWPHQWV
DVVXPSWLRQVWREHFRQVLVWHQWDQGLQOLQHZLWKRXUH[SHFWDWLRQV
7KH&RPSDQ\VPDUNHWFDSLWDOLVDWLRQLVVXEMHFWWR
:HDOVRSHUIRUPHGVHQVLWLYLW\DQDO\VHVRQWKHNH\GULYHUVRIFDVKRZ
VKDUHSULFHYRODWLOLW\
IRUHFDVWVIRUVLJQLFDQWFRPSRQHQWV
$VDQRYHUDOOFRQVLGHUDWLRQZHDVVHVVHGPDQDJHPHQWVFRPSDULVRQ
EHWZHHQLQYHVWPHQWYDOXHDQGPDUNHWFDSLWDOLVDWLRQ
$VDUHVXOWRIRXUZRUNZHIRXQGPDQDJHPHQWVDVVXPSWLRQVDQGWKHLU
Supplementary Information

GHWHUPLQDWLRQWKDWQRLPSDLUPHQWZDVUHTXLUHGWREHUHDVRQDEOHDIWHU
KDYLQJUHHFWHGWKHZULWHGRZQRILQYHVWPHQWVHTXDOWRWKHGLYLGHQG
UHFHLYHGIURP&RFD&ROD+%&+ROGLQJV%9RI&+)P

5HVSRQVLELOLWLHVRIWKH%RDUGRI'LUHFWRUVIRUWKHQDQFLDOVWDWHPHQWV
7KH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQRIWKHQDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6ZLVVODZDQGWKH
&RPSDQ\VDUWLFOHVRILQFRUSRUDWLRQDQGIRUVXFKLQWHUQDOFRQWURODVWKH%RDUGRI'LUHFWRUVGHWHUPLQHVLVQHFHVVDU\WRHQDEOHWKHSUHSDUDWLRQ
RIQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
,QSUHSDULQJWKHQDQFLDOVWDWHPHQWVWKH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUDVVHVVLQJWKHHQWLW\VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQ
GLVFORVLQJDVDSSOLFDEOHPDWWHUVUHODWHGWRJRLQJFRQFHUQDQGXVLQJWKHJRLQJFRQFHUQEDVLVRIDFFRXQWLQJXQOHVVWKH%RDUGRI'LUHFWRUV
HLWKHULQWHQGVWROLTXLGDWHWKHHQWLW\RUWRFHDVHRSHUDWLRQVRUKDVQRUHDOLVWLFDOWHUQDWLYHEXWWRGRVR

COC016_.indb 185 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

$XGLWRUVUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHQDQFLDOVWDWHPHQWV
2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURPPDWHULDOPLVVWDWHPHQW
ZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRUVUHSRUWWKDWLQFOXGHVRXURSLQLRQ5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFHEXW
LVQRWDJXDUDQWHHWKDWDQDXGLWFRQGXFWHGLQDFFRUGDQFHZLWK6ZLVVODZDQG6ZLVV$XGLWLQJ6WDQGDUGVZLOODOZD\VGHWHFWDPDWHULDO
PLVVWDWHPHQWZKHQLWH[LVWV0LVVWDWHPHQWVFDQDULVHIURPIUDXGRUHUURUDQGDUHFRQVLGHUHGPDWHULDOLILQGLYLGXDOO\RULQWKHDJJUHJDWHWKH\
FRXOGUHDVRQDEO\EHH[SHFWHGWRLQXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVWDNHQRQWKHEDVLVRIWKHVHQDQFLDOVWDWHPHQWV
$IXUWKHUGHVFULSWLRQRIRXUUHVSRQVLELOLWLHVIRUWKHDXGLWRIWKHQDQFLDOVWDWHPHQWVLVORFDWHGDWWKHZHEVLWHRI(;3(57VXLVVH
KWWSH[SHUWVXLVVHFKHQDXGLWUHSRUWIRUSXEOLFFRPSDQLHV7KLVGHVFULSWLRQIRUPVSDUWRIRXUDXGLWRUVUHSRUW

5HSRUWRQRWKHUOHJDODQGUHJXODWRU\UHTXLUHPHQWV
,QDFFRUGDQFHZLWKDUWLFOHDSDUDJUDSKLWHP&2DQG6ZLVV$XGLWLQJ6WDQGDUGZHFRQUPWKDWDQLQWHUQDOFRQWUROV\VWHPH[LVWV
ZKLFKKDVEHHQGHVLJQHGIRUWKHSUHSDUDWLRQRIQDQFLDOVWDWHPHQWVDFFRUGLQJWRWKHLQVWUXFWLRQVRIWKH%RDUGRI'LUHFWRUV
:HIXUWKHUFRQUPWKDWWKHSURSRVHGDSSURSULDWLRQRIDYDLODEOHHDUQLQJVDQGUHVHUYHVFRPSOLHVZLWK6ZLVVODZDQGWKH&RPSDQ\V
DUWLFOHVRILQFRUSRUDWLRQ:HUHFRPPHQGWKDWWKHQDQFLDOVWDWHPHQWVVXEPLWWHGWR\RXEHDSSURYHG
3ULFHZDWHUKRXVH&RRSHUV$*

Mike Foley Philipp Kegele

Audit expert
Auditor in charge

=ULFK0DUFK

COC016_.indb 186 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 187

Strategic Report
&RFD&ROD+%&$*VQDQFLDOVWDWHPHQWV=XJ
Balance sheet
As at 31 December
2016 2015
1RWH CHF thousands
ASSETS

Corporate Governance
&DVKDQGFDVKHTXLYDOHQWV 1,648 
6KRUWWHUPUHFHLYDEOHVIURPGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQV  7,354 
6KRUWWHUPUHFHLYDEOHVIURPWKLUGSDUWLHV 763 
3UHSDLGH[SHQVHVDQGDFFUXHGLQFRPH 
Total current assets 9,765 8,240
,QYHVWPHQWVLQVXEVLGLDULHV  8,704,582 
3URSHUW\SODQWDQGHTXLSPHQW 1,465 
Total non-current assets 8,706,047 8,866,664
Total assets 8,715,812 8,874,904

LIABILITIES AND SHAREHOLDERS EQUITY

Financial Statements
7UDGHSD\DEOHVGXHWRWKLUGSDUWLHV 806 
6KRUWWHUPOLDELOLWLHVWRGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQV  3,493 
6KRUWWHUPLQWHUHVWEHDULQJOLDELOLWLHVWRGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQV  2,142
$FFUXHGH[SHQVHV  15,605 
Total short-term liabilities 22,046 22,918
/RQJWHUPLQWHUHVWEHDULQJOLDELOLWLHVWRLQGLUHFWSDUWLFLSDWLRQV  68,446 
3URYLVLRQV 
Total long-term liabilities 68,446 83,611
Share capital  2,456,492 
Legal capital reserves

Swiss Statutory Reporting

5HVHUYHVIURPFDSLWDOFRQWULEXWLRQV 5,948,183 
Reserves for treasury shares  85,298 
Retained earnings
Results carried forward 144,617 
Loss for the year (7,320) 
Treasury shares  (1,950) 
Total shareholders equity  8,625,320 8,768,375
Total liabilities and shareholders equity 8,715,812 8,874,904
Supplementary Information

COC016_.indb 187 3/16/17 2:36 PM

 Coca-Cola HBC
188 2016 Integrated Annual Report

Swiss Statutory Reporting continued

6WDWHPHQWRILQFRPH
Year ended 31 December
2016 2015
1RWH CHF thousands
'LYLGHQGLQFRPH 160,395 
2WKHURSHUDWLQJLQFRPH  25,333 
Total operating income 185,728 278,570

(PSOR\HHFRVWV (14,728) 

2WKHURSHUDWLQJH[SHQVHV (17,198) 
:ULWHGRZQRILQYHVWPHQWV  (160,395) 
'HSUHFLDWLRQRQSURSHUW\SODQWDQGHTXLSPHQW (213) 
Total operating expenses (192,534) (290,414)

Operating loss (6,806) (11,844)

)LQDQFHLQFRPH 3,568 

)LQDQFHFRVWV (3,790) 
([WUDRUGLQDU\QRQUHFXUULQJRUSULRUSHULRGH[SHQVHV  
Loss before tax (7,028) (55,362)
'LUHFWWD[HV (292) 

Loss for the year (7,320) (55,674)

COC016_.indb 188 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
1RWHVWRWKHQDQFLDOVWDWHPHQWVRI&RFD&ROD+%&$*=XJ
Introduction
&RFD&ROD+%&$*WKH&RPSDQ\ZDVLQFRUSRUDWHGRQ6HSWHPEHUE\.DU7HVV+ROGLQJ2Q2FWREHUWKH&RPSDQ\
DQQRXQFHGDYROXQWDU\VKDUHH[FKDQJHRHUWRDFTXLUHDOORXWVWDQGLQJRUGLQDU\UHJLVWHUHGVKDUHVDQGDOO$PHULFDQGHSRVLWDU\VKDUHVRI
&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\6$0DURXVVL*5&&+%&6$$VDUHVXOWRIWKHVXFFHVVIXOFRPSOHWLRQRIWKLVRHURQ$SULO
WKH&RPSDQ\DFTXLUHGRIWKHLVVXHG&&+%&6$VKDUHVLQFOXGLQJVKDUHVUHSUHVHQWHGE\$PHULFDQGHSRVLWDU\VKDUHVDQGEHFDPH

Corporate Governance
WKHQHZSDUHQWFRPSDQ\RIWKH*URXSWKH&RPSDQ\DQGLWVGLUHFWDQGLQGLUHFWVXEVLGLDULHV2Q-XQHWKH&RPSDQ\FRPSOHWHGLWV
VWDWXWRU\EX\RXWRIWKHUHPDLQLQJVKDUHVRI&&+%&6$WKDWLWGLGQRWDFTXLUHXSRQFRPSOHWLRQRILWVYROXQWDU\VKDUHH[FKDQJHRHU

$FFRXQWLQJSULQFLSOHV
$FFRXQWLQJSULQFLSOHVDSSOLHGLQWKHSUHSDUDWLRQRIWKHQDQFLDOVWDWHPHQWV
7KHVHQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIFRPPHUFLDODFFRXQWLQJDVVHWRXWLQWKH6ZLVV&RGHRI
2EOLJDWLRQV$UWWRE&2DSSOLFDEOHIURPWKH\HDUHQGHG'HFHPEHU6LJQLFDQWDFFRXQWLQJDQGYDOXDWLRQSULQFLSOHVDUH
GHVFULEHGEHORZ

'LYLGHQGLQFRPH
'LYLGHQGLQFRPHLVUHFRJQLVHGZKHQWKHULJKWWRUHFHLYHSD\PHQWLVHVWDEOLVKHG

Financial Statements
2WKHURSHUDWLQJLQFRPH
7KH&RPSDQ\SURYLGHVPDQDJHPHQWVHUYLFHVWRLWVSULQFLSDOVXEVLGLDULHVDQGDFWVDVJXDUDQWRUWRLWVSULQFLSDOVXEVLGLDU\&RFD&ROD+%&
)LQDQFH%97KHLQFRPHIURPWKHVHVHUYLFHVLVUHFRJQLVHGLQWKHDFFRXQWLQJSHULRGLQZKLFKWKHVHUYLFHLVSURYLGHG

([FKDQJHUDWHGLHUHQFHV
7KHDFFRXQWLQJUHFRUGVRIWKH&RPSDQ\DUHUHWDLQHGLQ(XURDQGWUDQVODWHGWR6ZLVVIUDQFV&+)IRUSUHVHQWDWLRQSXUSRVHV([FHSWIRU
LQYHVWPHQWVLQVXEVLGLDULHVSURSHUW\SODQWDQGHTXLSPHQWORQJWHUPOLDELOLWLHVDQGHTXLW\ZKLFKDUHWUDQVODWHGDWKLVWRULFDOUDWHVDOODVVHWVDQG
OLDELOLWLHVGHQRPLQDWHGLQIRUHLJQFXUUHQFLHVDUHWUDQVODWHGLQWR&+)XVLQJWKHFORVLQJH[FKDQJHUDWHDVDW'HFHPEHU,QFRPHDQG
H[SHQVHVDUHWUDQVODWHGLQWR&+)DWWKHDYHUDJHH[FKDQJHUDWHRIWKHUHSRUWLQJ\HDU1HWXQUHDOLVHGH[FKDQJHORVVHVDUHUHFRUGHGLQWKH
LQFRPHVWDWHPHQWZKLOHQHWXQUHDOLVHGJDLQVDUHGHIHUUHGZLWKLQDFFUXHGOLDELOLWLHV
Balance sheet as at Income statement for the year ended

Swiss Statutory Reporting

Exchange rates 31 December 2016 31 December 2015 31 December 2016 31 December 2015
(85 1.07   
USD 1.03 
*%3 1.26 

,QYHVWPHQWVLQVXEVLGLDULHV
,QYHVWPHQWVLQVXEVLGLDULHVDUHYDOXHGDWKLVWRULFDOFRVWDQGHYDOXDWHGIRULPSDLUPHQWLILGHQWLHGWULJJHULQJHYHQWVRFFXU

3URSHUW\SODQWDQGHTXLSPHQW
'HSUHFLDWLRQLVFDOFXODWHGRQWKHEDVLVRIWKHIROORZLQJXVHIXOOLYHVDQGLQDFFRUGDQFHZLWKWKHIROORZLQJPHWKRGV
Property, plant and equipment Useful life Method
/HDVHKROGLPSURYHPHQWEXLOGLQJ \HDUV OLQHDU
Supplementary Information

/HDVHKROGLPSURYHPHQWRFHLQIUDVWUXFWXUH \HDUV OLQHDU

Building infrastructure \HDUV OLQHDU
)XUQLWXUHDQG[WXUHVRFHHTXLSPHQWDQGRWKHUWDQJLEOH[HGDVVHWV 8 years OLQHDU
Telephony infrastructure 7 years OLQHDU
&RPPXQLFDWLRQHTXLSPHQWFRPSXWHUVDQG3&V \HDUV OLQHDU
7DEOHWV 3 years OLQHDU

Treasury shares
7UHDVXU\VKDUHVDUHUHFRJQLVHGDWDFTXLVLWLRQFRVWDQGGHGXFWHGIURPVKDUHKROGHUVHTXLW\DWWKHWLPHRIDFTXLVLWLRQ,IWUHDVXU\VKDUHVDUH
VROGWKHJDLQRUORVVDULVLQJLVUHFRJQLVHGLQWKHLQFRPHVWDWHPHQWDVQDQFHLQFRPHRUQDQFHFRVWDVDSSURSULDWH

COC016_.indb 189 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

,QIRUPDWLRQUHODWLQJWRWKHEDODQFHVKHHWDQGVWDWHPHQWRILQFRPH
6KRUWWHUPUHFHLYDEOHVIURPGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQV
7KHVKRUWWHUPUHFHLYDEOHVIURPGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQVGRQRWEHDULQWHUHVWb
As at 31 December
1DPHRISDUWLFLSDWLRQ{ { 2015
CHF thousands
&&%0DQDJHPHQW6HUYLFHV*PE+9LHQQD 6,631 
&RFD&ROD+%&)LQDQFH%9$PVWHUGDP 703 
//&&RFD&ROD(XUDVLD1L]KQL1RYJRURG 15
&RFD&ROD+%&%XVLQHVV6HUYLFHV2UJDQLVDWLRQ6RD 5
Short-term receivables from direct and indirect participations 7,354 6,656

,QYHVWPHQWVLQVXEVLGLDULHV
As at 31 December
Direct subsidiary Share of capital Share of votes 2016 2015
CHF thousands
&RFD&ROD+%&+ROGLQJV%9$PVWHUGDP1   8,864,977 
:ULWHGRZQRILQYHVWPHQW (160,395) 
Investments in subsidiaries 100% 100% 8,704,582 8,864,977
 &RFD&ROD+%&+ROGLQJV%9$PVWHUGDPZDVLQFRUSRUDWHGRQ-XQH

,QWKH&RPSDQ\DGRSWHGDSUDFWLFHWRUHGXFHWKHYDOXHRILWVLQYHVWPHQWLQ&RFD&ROD+%&+ROGLQJV%9E\DQDPRXQWHTXDOWRWKH
GLYLGHQGUHFHLYHGIURPWKDWVXEVLGLDU\b7KHDPRXQWRIWKHZULWHGRZQLQLVHTXDOWRWKHGLYLGHQGUHFHLYHGLQ-XO\IURP&RFD&ROD
+%&+ROGLQJV%9RI&+)WKRXVDQG
7KHSULQFLSDOGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQVRIWKH&RPSDQ\DUHGLVFORVHGLQ1RWHWRWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

6KRUWWHUPOLDELOLWLHVWRGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQVDQGDFFUXHGH[SHQVHV
7KHVKRUWWHUPOLDELOLWLHVWRWKHGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQVbGRQRWEHDULQWHUHVWH[FHSWIRUWKHOLDELOLW\WR&RFD&ROD+%&)LQDQFH%9
ZKLFKLVLQWHUHVWEHDULQJ
As at 31 December
Name of participation { 2015
CHF thousands
&&%0DQDJHPHQW6HUYLFHV*PE+9LHQQD 2,820 
&RFD&ROD+HOOHQLF%XVLQHVV6HUYLFH2UJDQLVDWLRQ6RD 4 
&RFD&ROD+%&,UHODQG/LPLWHG'XEOLQ 
&RFD&ROD+%&)LQDQFH%9$PVWHUGDP 647 
&RFD&ROD+%&6HUYLFHV$WKHQV 17
&RFD&ROD+%&1RUWKHUQ,UHODQG/WG/LVEXUQ 5
Total short-term non interest-bearing liabilities to direct and indirect participations 3,493 4,718

$VDW'HFHPEHU{
Name of participation { 2015
CHF thousands
&RFD&ROD+%&)LQDQFH%9$PVWHUGDP 2,142
Total short-term interest-bearing liabilities to direct and indirect participations 2,142

As at 31 December
{ 2015
Accrued expenses CHF thousands
'LUHFWWD[HV { 
0DQDJHPHQWLQFHQWLYHSODQ0,3 2,848 
(PSOR\HHUHODWHGFRVWVVRFLDOVHFXULW\ LQVXUDQFHSD\UROOWD[HV 1,149 
2WKHUDFFUXHGH[SHQVHV 2,360 
1HWXQUHDOLVHGJDLQVIURPIRUHLJQFXUUHQF\WUDQVODWLRQ 8,935 
Total accrued expenses 15,605 16,998

COC016_.indb 190 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
/RQJWHUPLQWHUHVWEHDULQJOLDELOLWLHV
As at 31 December
{ 2015
CHF thousands
&RFD&ROD+%&)LQDQFH%9$PVWHUGDP 68,446 

/RQJWHUPLQWHUHVWEHDULQJOLDELOLWLHVFRPSULVHORDQVIURP&RFD&ROD+%&)LQDQFH%92Q$XJXVWWKH&RPSDQ\bHQWHUHG

Corporate Governance
LQWRbLQWHUHVWEHDULQJORQJWHUPORDQDJUHHPHQWVZLWK&RFD&ROD)LQDQFH%9ZLWKDQRPLQDODPRXQWRIWKRXVDQGDQGPDWXULQJRQ
'HFHPEHU7KHRXWVWDQGLQJDPRXQWRIWKHORDQDVDW'HFHPEHUZDV&+)bWKRXVDQG

6KDUHFDSLWDO
Number of shares Nominal value Total
CHF CHF thousands
6KDUHFDSLWDODVDW-DQXDU\   
6KDUHVLVVXHGWRHPSOR\HHVH[HUFLVLQJVWRFNRSWLRQV   
Share capital as at 31 December 2015 368,141,297  2,466,547
Number of
shares Nominal value Total

Financial Statements
CHF CHF thousands
6KDUHFDSLWDODVDW-DQXDU\   
Cancellation of shares1   
6KDUHVLVVXHGWRHPSOR\HHVH[HUFLVLQJVWRFNRSWLRQV   
Share capital as at 31 December 2016 366,640,638 6.70 2,456,492

7UHDVXU\VKDUHV
7KHQXPEHURIWUHDVXU\VKDUHVKHOGE\&RFD&ROD+%&$*DQGLWVVXEVLGLDULHVTXDOLI\LQJXQGHUDUWLFOHE6&2DQGWKHLUPRYHPHQWVDUH
DVIROORZV
Number of Book value per
Treasury shares (held by subsidiaries) shares share Total

Swiss Statutory Reporting

CHF CHF thousands
Total ordinary treasury shares at 31 December 2015   

Total ordinary treasury shares at 31 December 2016 3,430,135  85,298

Number of Book value per

Treasury shares held by the Company shares share Total
CHF CHF thousands
7UHDVXU\VKDUHVKHOGE\&RPSDQ\DVDW-DQXDU\   
6KDUHVSXUFKDVHGDVSDUWRIEX\EDFNSURJUDPPHLQ1   
Treasury shares held by Coca-Cola HBC AG as at 31 December 2015 3,014,925 21.8404 (65,847)
Supplementary Information

7UHDVXU\VKDUHVKHOGE\&RPSDQ\DVDW-DQXDU\   

Cancellation of shares1   
Treasury shares held by Coca-Cola HBC AG as at 31 December 2016 14,925 130.6600 (1,950)
 2Q-XQHWKH$QQXDO*HQHUDO0HHWLQJDGRSWHGDSURSRVDOWREX\EDFNRIXSWRRUGLQDU\VKDUHV7KHSURJUDPPHVWDUWHGRQ$XJXVWDQG
ZDVbFRPSOHWHGRQ'HFHPEHU7KH&RPSDQ\SXUFKDVHGRILWVRUGLQDU\VKDUHVRI&+)HDFKDWDQDYHUDJHSULFHRI*%3SHQFHSHUVKDUH
PLQLPXPSULFHRI*%3SHQFHDQGPD[LPXPSULFHRISHQFH2Q-XQHWKH$QQXDO*HQHUDO0HHWLQJDSSURYHGWKHSURSRVDOWRUHGXFHWKH
VKDUHFDSLWDORI&RFD&ROD+%&$*E\FDQFHOOLQJWKHWUHDVXU\VKDUHVDFTXLUHGDVSDUWRIWKHVKDUHEX\EDFNSURJUDPPHGHVFULEHGDERYH7KHUHVSHFWLYH
UHGXFWLRQRIWKHVKDUHFDSLWDOZDVFRPSOHWHGLQ6HSWHPEHU

COC016_.indb 191 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

,QIRUPDWLRQUHODWLQJWRWKHEDODQFHVKHHWDQGVWDWHPHQWRILQFRPHFRQWLQXHG
(TXLW\
Retained
Share capital Legal capital reserves earnings Treasury shares Total
Reserves from
capital Reserves for
contributions treasury shares1
CHF thousands
Balance as at 1 January 2015 2,464,389 6,276,922 85,298 200,291 (1,950) 9,024,950
6KDUHVLVVXHGWRHPSOR\HHVH[HUFLVLQJ
VWRFNRSWLRQV   
Dividends  
2ZQVKDUHVERXJKWEDFN  
Loss for the year  
Balance as at 31 December 2015 2,466,547 6,137,760 85,298 144,617 (65,847) 8,768,375

Balance as at 1 January 2016 2,466,547 6,137,760 85,298 144,617 (65,847) 8,768,375

6KDUHVLVVXHGWRHPSOR\HHVH[HUFLVLQJ
VWRFNRSWLRQV   
Dividends  
Cancellation of shares   
Loss for the year  
Balance as at 31 December 2016 2,456,492 5,948,183 85,298 137,297 (1,950) 8,625,320
 5HSUHVHQWVWKHERRNYDOXHRIWUHDVXU\VKDUHVKHOGE\VXEVLGLDULHV
 2Q-XQHWKHVKDUHKROGHUVRIWKH&RPSDQ\DWWKH$QQXDO*HQHUDO0HHWLQJDSSURYHGWKHGLVWULEXWLRQRIDGLYLGHQGSHUHDFKRUGLQDU\UHJLVWHUHGVKDUH
7KHbGLYLGHQGZDVSDLGRQ-XO\DQGDPRXQWHGWR&+)WKRXVDQG

2WKHURSHUDWLQJLQFRPH
2016 2015
CHF thousands
0DQDJHPHQWIHHV 22,383 
Guarantee fee 2,950 
Total other operating income 25,333 24,396

0DQDJHPHQWIHHVUHODWHWRVHUYLFHLQFRPHHDUQHGIURPVHUYLFHVSURYLGHGWRWKH&RPSDQ\VGLUHFWDQGLQGLUHFWSDUWLFLSDWLRQV
*XDUDQWHHIHHLVWKHLQFRPHWKH&RPSDQ\UHFHLYHVIRUWKHVHUYLFHVSURYLGHGDVJXDUDQWRUWR&RFD&ROD+%&)LQDQFH%9

([WUDRUGLQDU\QRQUHFXUULQJRUSULRUSHULRGH[SHQVHV
7KH\HDUHQGHG'HFHPEHULQFOXGHVH[WUDRUGLQDU\DPRUWLVDWLRQRI&+)WKRXVDQGUHVXOWLQJIURPFDSLWDOLVHGRUJDQLVDWLRQDO
FRVWVWKDWZHUHIXOO\DPRUWLVHGDVDW-DQXDU\LQDFFRUGDQFHZLWKWKHQHZDFFRXQWLQJODZ7KHH[WUDRUGLQDU\QRQUHFXUULQJSULRUSHULRG
H[SHQVHVZHUHQLOIRUWKH\HDUHQGHG'HFHPEHU

COC016_.indb 192 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
2WKHULQIRUPDWLRQ
1HWUHOHDVHRIKLGGHQUHVHUYHV
1RKLGGHQUHVHUYHVZHUHUHOHDVHGIRUWKH\HDUVHQGHG'HFHPEHURU'HFHPEHU

1XPEHURIHPSOR\HHV
,QDQGRQDQDQQXDODYHUDJHEDVLVWKHQXPEHURIIXOOWLPHHTXLYDOHQWHPSOR\HHVGLGQRWH[FHHG

Corporate Governance
2SHUDWLQJOHDVHOLDELOLWLHVQRWWHUPLQDEOHRUH[SLULQJZLWKLQPRQWKVRIEDODQFHVKHHWGDWH
Residual term (years) 2016 2015
CHF thousands
2FHUHQWDO7XUPVWUDVVH=XJ WR\HDU 500 
Total lease liabilities 500 799

3HQVLRQOLDELOLWLHV
$VDW'HFHPEHUWKHOLDELOLW\WRWKHSHQVLRQVFKHPHDPRXQWHGWR&+)WKRXVDQG&+)WKRXVDQG

&RQWLQJHQWOLDELOLWLHV

Financial Statements
(XURPHGLXPWHUPQRWHSURJUDPPHV
,Q-XQHWKH*URXSHVWDEOLVKHGbDQHZEQ(XURPHGLXPWHUPQRWHSURJUDPPHWKH(0713URJUDPPH7KH(071SURJUDPPHZDV
XSGDWHGLQ6HSWHPEHUDQGWKHQDJDLQLQ6HSWHPEHU1RWHVDUHLVVXHGXQGHUWKH(071SURJUDPPHWKURXJKWKH&RPSDQ\VZKROO\
RZQHGVXEVLGLDU\&RFD&ROD+%&)LQDQFH%9DSULYDWHOLPLWHGOLDELOLW\FRPSDQ\HVWDEOLVKHGXQGHUWKHODZVRIWKH1HWKHUODQGVDQGDUH
JXDUDQWHHGE\WKH&RPSDQ\b
2Q-XQH&RFD&ROD+%&)LQDQFH%9LVVXHGPQRWHVGXH-XQHXQGHUWKH(071SURJUDPPHZKLFKDUH
JXDUDQWHHGE\WKH&RPSDQ\
2Q0DUFK&RFD&ROD+%&)LQDQFH%9LVVXHGPQRWHVGXH1RYHPEHUXQGHUWKH(071SURJUDPPHZKLFK
DUHJXDUDQWHHGE\WKH&RPSDQ\
$VDW'HFHPEHUDWRWDORIEQLQQRWHVLVVXHGXQGHUWKH(071SURJUDPPHZHUHRXWVWDQGLQJ

Swiss Statutory Reporting

6\QGLFDWHGPXOWLFXUUHQF\UHYROYLQJFUHGLWIDFLOLW\
,Q-XQHDQHZV\QGLFDWHGPXOWLFXUUHQF\UHYROYLQJFUHGLWIDFLOLW\DJUHHPHQWZDVVLJQHGIRUP&RFD&ROD+%&)LQDQFH%9LVWKH
RULJLQDOERUURZHU,1*%DQN19/RQGRQ%UDQFKWKHIDFLOLW\DJHQWDQGWKH&RPSDQ\DQG&RFD&ROD+%&+ROGLQJV%9DUHWKHWZRJXDUDQWRUV

&RPPHUFLDOSDSHUSURJUDPPH
,Q2FWREHUWKH*URXSHVWDEOLVKHGDQHZEQ(XURFRPPHUFLDOSDSHUSURJUDPPHZKLFKZDVXSGDWHGLQ6HSWHPEHU1RWHVDUH
LVVXHGXQGHUWKH(XURFRPPHUFLDOSDSHUSURJUDPPHE\&RFD&ROD+%&)LQDQFH%9DQGJXDUDQWHHGE\WKH&RPSDQ\7KHRXWVWDQGLQJ
DPRXQWXQGHUWKHFRPPHUFLDOSDSHUSURJUDPPHZDVPDVDW'HFHPEHUP

Credit support provider

2Q-XO\WKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWR'HXWVFKH%DQN$*WR-30RUJDQ6HFXULWLHVSOFWR&UHGLW6XLVVH
,QWHUQDWLRQDOWR&UHGLW6XLVVH$*WR,1*%DQN19WR6RFLHWH*HQHUDOHWR0HUULOO/\QFK,QWHUQDWLRQDODQGWR7KH5R\DO%DQNRI6FRWODQGSOF
Supplementary Information

LQbIDYRXURI&RFD&ROD+%&)LQDQFH%9IRUWKHREOLJDWLRQVDVGHQHGLQWKH,6'$0DVWHU$JUHHPHQWV1
2Q-XO\WKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWRWKH*RYHUQRUDQG&RPSDQ\RIWKH%DQNRI,UHODQG'XEOLQLQIDYRXURI
&RFD&ROD+%&)LQDQFH%9IRUWKHREOLJDWLRQVDVGHQHGLQWKH,6'$0DVWHU$JUHHPHQW1
2Q$XJXVWWKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWR&LWLEDQN1$LQIDYRXURI&&+%&%XOJDULD$'IRUWKHREOLJDWLRQV
DVbGHQHGLQWKH,6'$0DVWHU$JUHHPHQW1
2Q$XJXVWWKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWR&LWLEDQN1$LQIDYRXURI&RFD&ROD+%&)LQDQFH%9IRUWKHREOLJDWLRQV
DVGHQHGLQWKH,6'$0DVWHU$JUHHPHQW1

COC016_.indb 193 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

&RQWLQJHQWOLDELOLWLHVcontinued
2Q-XQHWKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWR,QWHVD6DQSDROR6S$LQIDYRXURI&RFD&ROD+%&)LQDQFH%9IRUWKH
REOLJDWLRQVDVGHQHGLQWKH,6'$0DVWHU$JUHHPHQW1
2Q2FWREHUWKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWR0DFTXDULH%DQN,QWHUQDWLRQDO/LPLWHGLQIDYRXURI&RFD&ROD+%&
)LQDQFH%9IRUWKHREOLJDWLRQVDVGHQHGLQWKH,6'$0DVWHU$JUHHPHQW1
2Q-XQHWKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWR8QL&UHGLW%DQN$*LQIDYRXURI&RFD&ROD+%&)LQDQFH%9IRUWKH
REOLJDWLRQVDVGHQHGLQWKH,6'$0DVWHU$JUHHPHQW1
2Q$XJXVWWKH&RPSDQ\VLJQHGDVFUHGLWVXSSRUWSURYLGHUWR%133DULEDVLQIDYRXURI&RFD&ROD+%&)LQDQFH%9IRUWKH
REOLJDWLRQVDVGHQHGLQWKH,6'$0DVWHU$JUHHPHQW1
 7KH,6'$,QWHUQDWLRQDO6ZDS'HDOHUV$VVRFLDWLRQ0DVWHU$JUHHPHQWLVDVWDQGDUGLVHGIRUPLVVXHGE\WKH,QWHUQDWLRQDO6ZDS'HDOHUV$VVRFLDWLRQ,QFWREHXVHGIRU
FUHGLWVXSSRUWWUDQVDFWLRQV

6LJQLFDQWVKDUHKROGHUV
$VDW'HFHPEHUDQGWKHUHZHUHWZRVKDUHKROGHUVH[FHHGLQJWKHWKUHVKROGRIYRWLQJULJKWVLQWKH&RPSDQ\VVKDUHFDSLWDO
Percentage of Percentage of
Number of issued share outstanding
Date shares capital1 share capital2
Total Kar-Tess Holding    
Total Kar-Tess Holding    
7RWDOVKDUHKROGLQJVUHODWHGWR7KH&RFD&ROD&RPSDQ\    
7RWDOVKDUHKROGLQJVUHODWHGWR7KH&RFD&ROD&RPSDQ\    
 %DVLVWRWDOLVVXHGVKDUHFDSLWDOLQFOXGLQJWUHDVXU\VKDUHV6KDUHEDVLVDVDW'HFHPEHU
 %DVLVWRWDOLVVXHGVKDUHFDSLWDOH[FOXGLQJWUHDVXU\VKDUHV6KDUHEDVLVDVDW'HFHPEHU

6KDUHKROGLQJVFRQYHUVLRQDQGRSWLRQULJKWV
7KHWDEOHEHORZVHWVRXWDFRPSDULVRQRIWKHLQWHUHVWVLQWKH&RPSDQ\VWRWDOLVVXHGVKDUHFDSLWDOWKDWWKHPHPEHUVRIWKH%RDUGRI'LUHFWRUV
'LUHFWRUVDQG2SHUDWLQJ&RPPLWWHHKROGDOORIZKLFKXQOHVVRWKHUZLVHVWDWHGDUHEHQHFLDOLQWHUHVWVRUDUHLQWHUHVWVRIDSHUVRQ
FRQQHFWHGZLWKD'LUHFWRURUDPHPEHURIWKH2SHUDWLQJ&RPPLWWHHDQGWKHLQWHUHVWVLQWKH&RPSDQ\VVKDUHFDSLWDO
31.12.2016 31.12.2015
Percentage of Percentage of Percentage of Percentage of
Number of issued share outstanding Number of issued share outstanding
shares capital1 share capital2 shares capital1 share capital2
Directors
$QDVWDVVLV*'DYLG3
'LPLWULV/RLV 49,142 0.01% 0.01%   
$KPHW&%R]HU
*HRUJH$'DYLG
2OXVROD6ROD'DYLG%RUKD
:LOOLDP:%LOO'RXJODV,,, 10,000 0.00% 0.00%
,ULDO)LQDQ
$QWRQLR'$PDWR
5HWR)UDQFLRQL
6LU0LFKDHO/OHZHOO\Q6PLWK 545 0.00% 0.00%   
1LJHO0DFGRQDOG7 1,700 0.00% 0.00%   
$QDVWDVLRV,/HYHQWLV8
Christo Leventis
-RV2FWDYLR5H\HV
$OH[DQGUD3DSDOH[RSRXORX
5REHUW5\DQ5XGROSK
-RKQ36HFKL

COC016_.indb 194 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
31.12.2016 31.12.2015
Percentage of Percentage of Percentage of Percentage of
Number of issued share outstanding Number of issued share outstanding
shares capital1 share capital2 shares capital1 share capital2
Operating Committee
Alain Brouhard 14,534 0.00% 0.00%   
-DQ*XVWDYVVRQ 53,027 0.01% 0.01%   
-RKQ%UDG\ 2,924 0.00% 0.00%   

Corporate Governance
Keith Sanders 27,125 0.01% 0.01%   
Martin Marcel 5,824 0.00% 0.00%   
0LFKDOLV,PHOORV 14,649 0.00% 0.00%   
1D\D.DORJHUDNL11 355 0.00% 0.00%
6DQGD3DUH]DQRYLF 1,477 0.00% 0.00%   
Sotiris Yannopoulos 10,377 0.00% 0.00%   
Zoran Bogdanovic 16,817 0.00% 0.00%   

7KHIROORZLQJWDEOHVHWVRXWLQIRUPDWLRQUHJDUGLQJWKHVWRFNRSWLRQVDQGSHUIRUPDQFHVKDUHVKHOGE\PHPEHUVRIWKH2SHUDWLQJ&RPPLWWHH
DVDW'HFHPEHU

Financial Statements
Stock options (ESOP) Performance shares (PSP)
Unvested and
subject to
Number of Already Vesting at the Granted in performance Vested but
stock options vested end of 2017 2016 conditions unexercised
'LPLWULV/RLV     
Alain Brouhard     
-DQ*XVWDYVVRQ     
-RKQ%UDG\     
Keith Sanders     
Martin Marcel     
0LFKDOLV,PHOORV     

Swiss Statutory Reporting

1D\D.DORJHUDNL11     
6DQGD3DUH]DQRYLF     
Sotiris Yannopoulos     
Zoran Bogdanovic     
 %DVLVWRWDOLVVXHGVKDUHFDSLWDOLQFOXGLQJWUHDVXU\VKDUHV6KDUHEDVLVDVDW'HFHPEHU
 %DVLVWRWDOLVVXHGVKDUHFDSLWDOH[FOXGLQJWUHDVXU\VKDUHV6KDUHEDVLVDVDW'HFHPEHU
 7KHLQIDQWFKLOGRI0U$QDVWDVVLV'DYLGEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RIWKHODWH
$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK7UXDG9HUZDOWXQJV$*LVWKH7UXVWHHKDVDQLQGLUHFWLQWHUHVWZLWKUHVSHFWWRWKHVKDUHVKHOGE\.DU7HVV+ROGLQJ6$
7KHLQIDQWFKLOGRI0U$QDVWDVVLV'DYLGEHLQJDEHQHFLDU\RIDIXUWKHUSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RI
WKHODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK6HOHQH7UHXKDQG$*LVWKH7UXVWHHKDVDIXUWKHULQGLUHFWLQWHUHVWLQUHVSHFWRIVKDUHVKHOGE\6HOHQH7UHXKDQG
$*0U$QDVWDVVLV'DYLGLVFRQQHFWHGZLWKKLVLQIDQWFKLOGIRUWKHSXUSRVHVRIUXOHRIWKH'LVFORVXUH*XLGDQFHDQG7UDQVSDUHQF\5XOHVRIWKH8.)LQDQFLDO
&RQGXFW$XWKRULW\
 0U*HRUJH$'DYLGUHWLUHGIURPWKH%RDUGDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHRQ-XQH
 0U,ULDO)LQDQUHWLUHGIURPWKH%RDUGRQ-XQH
Supplementary Information

 6LU0LFKDHO/OHZHOO\Q6PLWKUHWLUHGIURPWKH%RDUGWKH5HPXQHUDWLRQ&RPPLWWHHWKH1RPLQDWLRQ&RPPLWWHHDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHRQ
-XQH
 0U1LJHO0DFGRQDOGUHWLUHGIURPWKH%RDUGDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH
 7KHLQIDQWFKLOGRI0U$QDVWDVLRV,/HYHQWLVEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RIWKH
ODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK7UXDG9HUZDOWXQJV$*LVWKH7UXVWHHKDVDQLQGLUHFWLQWHUHVWLQUHVSHFWRIWKHVKDUHVKHOGE\.DU7HVV+ROGLQJ
6$7KHLQIDQWFKLOGRI0U$QDVWDVLRV,/HYHQWLVEHLQJDEHQHFLDU\RIDIXUWKHUSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKH
IDPLO\RIWKHODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK6HOHQH7UHXKDQG$*LVWKH7UXVWHHKDVDIXUWKHULQGLUHFWLQWHUHVWLQUHVSHFWRIVKDUHVKHOGE\6HOHQH
7UHXKDQG$*0U$QDVWDVLRV,/HYHQWLVLVFRQQHFWHGZLWKKLVLQIDQWFKLOGIRUWKHSXUSRVHVRIUXOHRIWKH'LVFORVXUH*XLGDQFHDQG7UDQVSDUHQF\5XOHVRIWKH8.
)LQDQFLDO&RQGXFW$XWKRULW\%\YLUWXHRIKLPVHOIEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\
RIWKHODWH&KULVWRGRXORV3DSDQHRNOHXV/HYHQWLVRIZKLFK0HUYDLO&RPSDQ\37&/LPLWHGLVWKHWUXVWHH0U$QDVWDVLRV,/HYHQWLVKDVDQLQGLUHFWLQWHUHVWZLWKUHVSHFW
WRVKDUHVKHOGE\&DUOFDQ+ROGLQJ/LPLWHG
 7KHLQIDQWFKLOGUHQRI0U&KULVWR/HYHQWLVEHLQJEHQHFLDULHVRIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RIWKH
ODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK7UXDG9HUZDOWXQJV$*LVWKH7UXVWHHKDYHLQGLUHFWLQWHUHVWVZLWKUHVSHFWWRWKHVKDUHVKHOGE\.DU7HVV+ROGLQJ
6$7KHLQIDQWFKLOGUHQRI0U&KULVWR/HYHQWLVEHLQJEHQHFLDULHVRIDIXUWKHUSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKH
IDPLO\RIWKHODWH$QDVWDVLRV*HRUJH/HYHQWLVRIZKLFK6HOHQH7UHXKDQG$*LVWKH7UXVWHHKDYHIXUWKHULQGLUHFWLQWHUHVWVLQUHVSHFWRIVKDUHVKHOGE\6HOHQH
7UHXKDQG$*0U&KULVWR/HYHQWLVLVFRQQHFWHGZLWKKLVLQIDQWFKLOGUHQIRUWKHSXUSRVHVRIUXOHRIWKH'LVFORVXUH*XLGDQFHDQG7UDQVSDUHQF\5XOHVRIWKH8.)LQDQFLDO
&RQGXFW$XWKRULW\%\YLUWXHRIKLPVHOIEHLQJDEHQHFLDU\RIDSULYDWHGLVFUHWLRQDU\WUXVWIRUWKHSULPDU\EHQHWRISUHVHQWDQGIXWXUHPHPEHUVRIWKHIDPLO\RIWKHODWH
&KULVWRGRXORV3DSDQHRNOHXV/HYHQWLVRIZKLFK0HUYDLO&RPSDQ\37&/LPLWHGLVWKHWUXVWHH0U&KULVWR/HYHQWLVKDVDQLQGLUHFWLQWHUHVWZLWKUHVSHFWWRWKH
VKDUHVKHOGE\&DUOFDQ+ROGLQJ/LPLWHG
 0U%UDG\OHIWWKH*URXSRQ'HFHPEHU
 0V.DORJHUDNLMRLQHGWKH2SHUDWLQJ&RPPLWWHHRQ-XO\

)HHVSDLGWRWKHDXGLWRU
7KHDXGLWDQGRWKHUIHHVSDLGWRWKHDXGLWRUDUHGLVFORVHGLQ1RWHRIWKHFRQVROLGDWHGQDQFLDOVWDWHPHQWV

COC016_.indb 195 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

3URSRVHGDSSURSULDWLRQRIDYDLODEOHHDUQLQJVDQGUHVHUYHVGHFODUDWLRQRI
GLYLGHQG
3URSRVHGDSSURSULDWLRQRIDYDLODEOHHDUQLQJV
Available earnings and reserves CHF thousands
%DODQFHEURXJKWIRUZDUGIURPSUHYLRXV\HDUV 
1HWORVVIRUWKH\HDU 
Total available retained earnings to be carried forward 137,297

5HVHUYHVIURPFDSLWDOFRQWULEXWLRQVEHIRUHGLVWULEXWLRQ 
Total available retained earnings and reserves 6,085,480

3URSRVHGGHFODUDWLRQRIDGLYLGHQGIURPUHVHUYHV
7KH%RDUGRI'LUHFWRUVSURSRVHVWRGHFODUHDJURVVGLYLGHQGRI(85RQHDFKRUGLQDU\UHJLVWHUHGVKDUHZLWKDSDUYDOXHRI&+)IURP
WKHJHQHUDOFDSLWDOFRQWULEXWLRQUHVHUYH2ZQVKDUHVKHOGGLUHFWO\E\WKH&RPSDQ\DUHQRWHQWLWOHGWRGLYLGHQGV7KHWRWDODJJUHJDWHDPRXQW
RIWKHGLYLGHQGVVKDOOEHFDSSHGDWDQDPRXQWRI&+)WKRXVDQGWKH&DSDQGWKXVZLOOUHGXFHWKHJHQHUDOFDSLWDOFRQWULEXWLRQ
UHVHUYHRI&+)WKRXVDQGDVVKRZQLQWKHQDQFLDOVWDWHPHQWVDVRI'HFHPEHUE\DPD[LPXPRI&+)WKRXVDQG
7RWKHH[WHQWWKDWWKHGLYLGHQGFDOFXODWHGRQ(85SHUVKDUHZRXOGH[FHHGWKH&DSRQWKHGD\RIWKH$QQXDOb*HQHUDO0HHWLQJGXHWRWKH
H[FKDQJHUDWHGHWHUPLQHGE\WKH%RDUGRI'LUHFWRUVLQLWVUHDVRQDEOHRSLQLRQWKH(XURSHUVKDUHDPRXQWRIWKHGLYLGHQGVKDOOEHUHGXFHGRQD
SURUDWDEDVLVVRWKDWWKHDJJUHJDWHDPRXQWRIDOOGLYLGHQGVSDLGGRHVQRWH[FHHGWKH&DS3D\PHQWRIWKHGLYLGHQGVKDOOEHPDGHDWVXFK
WLPHDQGZLWKVXFKUHFRUGGDWHDVVKDOOEHGHWHUPLQHGE\WKH$QQXDO*HQHUDOb0HHWLQJDQGWKH%RDUGRI'LUHFWRUV

3URSRVHGDSSURSULDWLRQRIUHVHUYHVGHFODUDWLRQRIGLYLGHQG
9DULDQW'LYLGHQGRI(85DWFXUUHQWH[FKDQJHUDWLR
As of 31 December 2016 CHF thousands
5HVHUYHVIURPFDSLWDOFRQWULEXWLRQVEHIRUHGLVWULEXWLRQ 
3URSRVHGGLYLGHQGRI(851 
Reserves from capital contributions after distribution 5,770,736
 ,OOXVWUDWLYHDWDQH[FKDQJHUDWHRI&+)SHU(85$VVXPHVWKDWWKHVKDUHVHQWLWOHGWRDGLYLGHQGDPRXQWWR

9DULDQW'LYLGHQGLI&DSLVWULJJHUHG
As of 31 December 2016 CHF thousands
5HVHUYHVIURPFDSLWDOFRQWULEXWLRQVEHIRUHGLVWULEXWLRQ 
0D[LPXPGLYLGHQGLI&DSLVWULJJHUHG1 
(Minimum) Reserves from capital contributions after distribution 5,748,183
 'LYLGHQGLVFDSSHGDWDWRWDODJJUHJDWHDPRXQWRI&+)WKRXVDQG

COC016_.indb 196 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
Report of the statutory auditor
to the General Meeting
Coca-Cola HBC AG

Corporate Governance
Steinhausen/Zug

5HSRUWRIWKHVWDWXWRU\DXGLWRURQWKHVWDWXWRU\UHPXQHUDWLRQUHSRUW
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJUHPXQHUDWLRQUHSRUWRI&RFD&ROD+%&$*IRUWKH\HDUHQGHG'HFHPEHU7KHDXGLWZDVOLPLWHG
WRWKHLQIRUPDWLRQDFFRUGLQJWRDUWLFOHVRIWKH2UGLQDQFHDJDLQVW([FHVVLYH&RPSHQVDWLRQLQ6WRFN([FKDQJH/LVWHG&RPSDQLHV
2UGLQDQFHRQSDJHVWRRIWKHUHPXQHUDWLRQUHSRUW

%RDUGRI'LUHFWRUVUHVSRQVLELOLW\
7KH%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGRYHUDOOIDLUSUHVHQWDWLRQRIWKHUHPXQHUDWLRQUHSRUWLQDFFRUGDQFHZLWK6ZLVVODZ
DQGWKH2UGLQDQFHDJDLQVW([FHVVLYH&RPSHQVDWLRQLQ6WRFN([FKDQJH/LVWHG&RPSDQLHV2UGLQDQFH7KH%RDUGRI'LUHFWRUVLVDOVR
UHVSRQVLEOHIRUGHVLJQLQJWKHUHPXQHUDWLRQV\VWHPDQGGHQLQJLQGLYLGXDOUHPXQHUDWLRQSDFNDJHV

Financial Statements
$XGLWRUVUHVSRQVLELOLW\
2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHDFFRPSDQ\LQJUHPXQHUDWLRQUHSRUW:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWK6ZLVV
$XGLWLQJ6WDQGDUGV7KRVHVWDQGDUGVUHTXLUHWKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOH
DVVXUDQFHDERXWZKHWKHUWKHUHPXQHUDWLRQUHSRUWFRPSOLHVZLWK6ZLVVODZDQGDUWLFOHVRIWKH2UGLQDQFH
$QDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHRQWKHGLVFORVXUHVPDGHLQWKHUHPXQHUDWLRQUHSRUWZLWKUHJDUGWR
FRPSHQVDWLRQORDQVDQGFUHGLWVLQDFFRUGDQFHZLWKDUWLFOHVRIWKH2UGLQDQFH7KHSURFHGXUHVVHOHFWHGGHSHQGRQWKHDXGLWRUV
MXGJHPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRIPDWHULDOPLVVWDWHPHQWVLQWKHUHPXQHUDWLRQUHSRUWZKHWKHUGXHWRIUDXGRUHUURU7KLV
DXGLWDOVRLQFOXGHVHYDOXDWLQJWKHUHDVRQDEOHQHVVRIWKHPHWKRGVDSSOLHGWRYDOXHFRPSRQHQWVRIUHPXQHUDWLRQDVZHOODVDVVHVVLQJWKH
RYHUDOOSUHVHQWDWLRQRIWKHUHPXQHUDWLRQUHSRUW
:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXURSLQLRQ

Swiss Statutory Reporting

Opinion
,QRXURSLQLRQWKHUHPXQHUDWLRQUHSRUWRI&RFD&ROD+%&$*IRUWKH\HDUHQGHG'HFHPEHUFRPSOLHVZLWK6ZLVVODZDQGDUWLFOHV
RIWKH2UGLQDQFH
3ULFHZDWHUKRXVH&RRSHUV$*

Mike Foley Philipp Kegele

Supplementary Information

Audit expert
Auditor in charge

=ULFK0DUFK

COC016_.indb 197 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

6WDWXWRU\5HPXQHUDWLRQ5HSRUW
$GGLWLRQDOGLVFORVXUHVUHJDUGLQJWKH6WDWXWRU\5HPXQHUDWLRQ5HSRUW
7KHVHFWLRQEHORZLVLQOLQHZLWKWKH2UGLQDQFHDJDLQVWH[FHVVLYHSD\LQVWRFNH[FKDQJHOLVWHGFRPSDQLHVZKLFKUHTXLUHVGLVFORVXUHRIWKH
HOHPHQWVRIFRPSHQVDWLRQSDLGWRWKH&RPSDQ\V%RDUGRI'LUHFWRUVDQGWKH2SHUDWLQJ&RPPLWWHH7KHQXPEHUVUHODWHWRWKHFDOHQGDU
\HDUVRIDQG,QWKHLQIRUPDWLRQSUHVHQWHGEHORZWKHH[FKDQJHUDWHXVHGIRUFRQYHUVLRQRIUHPXQHUDWLRQGDWDIURP(XUR
WRb&+)LVDQGWKHH[FKDQJHUDWHXVHGIRUFRQYHUVLRQRIUHPXQHUDWLRQGDWDIURP(XURWR&+)LV
$VWKH&RPSDQ\LVKHDGTXDUWHUHGLQ6ZLW]HUODQGLWLVUHTXLUHGIRUVWDWXWRU\SXUSRVHVWRSUHVHQWFRPSHQVDWLRQGDWDIRUWZRFRQVHFXWLYH
\HDUVDQG7KHDSSOLFDEOHPHWKRGRORJ\XVHGWRFDOFXODWHWKHYDOXHRIVWRFNRSWLRQDQGSHUIRUPDQFHVKDUHVIROORZV6ZLVV
VWDQGDUGV,QDQGWKHIDLUYDOXHRISHUIRUPDQFHVKDUHVIURPWKHDQGJUDQWVLVFDOFXODWHGEDVHGRQWKHSHUIRUPDQFH
VKDUHDZDUGVWKDWDUHH[SHFWHGWRYHVWDQGQRWWKHVWRFNRSWLRQVWKDWYHVWHGLQDQGUHVSHFWLYHO\%HORZLVWKHUHOHYDQWLQIRUPDWLRQ
IRU6ZLVVVWDWXWRU\SXUSRVHV

&RPSHQVDWLRQIRUDFWLQJPHPEHUVRIJRYHUQLQJERGLHV
7KH&RPSDQ\V'LUHFWRUVEHOLHYHWKDWWKHOHYHORIUHPXQHUDWLRQRHUHGWR'LUHFWRUVDQGWKHPHPEHUVRIWKH2SHUDWLQJ&RPPLWWHHVKRXOG
UHHFWWKHLUH[SHULHQFHDQGUHVSRQVLELOLW\DVGHWHUPLQHGE\DPRQJRWKHUIDFWRUVDFRPSDULVRQZLWKVLPLODUPXOWLQDWLRQDOFRPSDQLHVDQG
VKRXOGEHVXFLHQWWRDWWUDFWDQGUHWDLQKLJKFDOLEUH'LUHFWRUVZKRZLOOOHDGWKH*URXSVXFFHVVIXOO\,QOLQHZLWKWKH*URXSVFRPPLWPHQWWR
PD[LPLVHVKDUHKROGHUYDOXHLWVSROLF\LVWROLQNDVLJQLFDQWSURSRUWLRQRIUHPXQHUDWLRQIRULWV2SHUDWLQJ&RPPLWWHHWRWKHSHUIRUPDQFHRI
WKHEXVLQHVVWKURXJKVKRUWDQGORQJWHUPLQFHQWLYHV7KHUHIRUHWKH2SHUDWLQJ&RPPLWWHHPHPEHUVQDQFLDOLQWHUHVWVDUHFORVHO\DOLJQHG
ZLWKWKRVHRIWKH&RPSDQ\VVKDUHKROGHUVWKURXJKWKHHTXLW\UHODWHGORQJWHUPFRPSHQVDWLRQSODQ
7KHWRWDOUHPXQHUDWLRQRIWKH'LUHFWRUVDQGPHPEHUVRIWKH2SHUDWLQJ&RPPLWWHHRIWKH&RPSDQ\LQFOXGLQJSHUIRUPDQFHVKDUHJUDQWV
GXULQJDPRXQWHGWR&+)PLOOLRQ2XWRIWKLVWKHDPRXQWUHODWLQJWRWKHH[SHFWHGYDOXHRISHUIRUPDQFHVKDUHDZDUGVJUDQWHG
LQbUHODWLRQWRZDV&+)PLOOLRQ3HQVLRQDQGSRVWHPSOR\PHQWEHQHWVIRU'LUHFWRUVDQGWKH2SHUDWLQJ&RPPLWWHHRIWKH&RPSDQ\
GXULQJDPRXQWHGWR&+)PLOOLRQ

COC016_.indb 198 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
&RPSHQVDWLRQRIWKH%RDUGRI'LUHFWRUV
2016 CHF
Pension and
Cash and Cash post- Total fair value of
non-cash performance employment stock options at Total
Fees EHQHWV1 incentives EHQHWV the date granted compensation
$QDVWDVVLV*'DYLG 73,490 73,490
$KPHW&%R]HU 37,555 37,555

Corporate Governance
*HRUJH$'DYLG3
2OXVROD6ROD'DYLG%RUKD 94,712 94,712
:LOOLDP:%LOO'RXJODV,,, 52,310 52,310
,ULDO)LQDQ 35,935 35,935
$QWRQLR'$PDWR 84,920 84,920
5HWR)UDQFLRQL7 58,738 58,738
6LU0LFKDHO/OHZHOO\Q6PLWK8 52,522 52,522
1LJHO0DFGRQDOG 49,757 49,757
$QDVWDVLRV,/HYHQWLV 43,457 43,457
Christo Leventis11 40,509 40,509
-RV2FWDYLR5H\HV 85,435 85,435

Financial Statements
$OH[DQGUD3DSDOH[RSRXORX13 90,822 90,822
5REHUW5\DQ5XGROSK 40,509 40,509
-RKQ36HFKL 87,805 87,805
'LPLWULV/RLV
Total Board of Directors 928,476 928,476
 $OORZDQFHVFRQVLVWRIFRVWRIOLYLQJDOORZDQFHKRXVLQJVXSSRUW(PSOR\HH6WRFN3XUFKDVH3ODQSULYDWHPHGLFDOLQVXUDQFHUHORFDWLRQH[SHQVHVKRPHWULSDOORZDQFH
OXPSVXPH[SHQVHVDQGVLPLODUDOORZDQFHV
 0U$KPHW&%R]HUZDVDSSRLQWHGWRWKH%RDUGRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI&+)
 0U*HRUJH$'DYLGUHWLUHGIURPWKH%RDUGDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHRQ-XQH)RUWKHUVWKDOIRI0U*HRUJH$'DYLGZDLYHGDQ\IHHLQ
UHVSHFWWRKLVPHPEHUVKLSRQWKH%RDUGRI'LUHFWRUVRUDQ\%RDUG&RPPLWWHH
 )RU0UV'DYLG%RUKDRQWRSRIWKHEDVHIHHRI&+)DQG$XGLWDQG5LVN&RPPLWWHHPHPEHUVKLSIHHRI&+)WKH*URXSSDLG&+)LQVRFLDOVHFXULW\
FRQWULEXWLRQVDVUHTXLUHGE\6ZLVVOHJLVODWLRQ

Swiss Statutory Reporting

 0U:LOOLDP:%LOO'RXJODV,,,ZDVDSSRLQWHGWRWKH%RDUGDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI
&+)DQG&+)IRUWKH$XGLWDQG5LVN&RPPLWWHH
 0U,ULDO)LQDQUHWLUHGIURPWKH%RDUGRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI&+)
 0U5HWR)UDQFLRQLZDVDSSRLQWHGWRWKH%RDUGWKH5HPXQHUDWLRQ&RPPLWWHHDQGWKH1RPLQDWLRQ&RPPLWWHHRQ-XQH)RU0U5HWR)UDQFLRQLRQWRSRIWKH
IHHVRI&+)WKH*URXSSDLG&+)LQVRFLDOVHFXULW\FRQWULEXWLRQVDVUHTXLUHGE\6ZLVVOHJLVODWLRQ7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI
&+)b&+)IRUWKH1RPLQDWLRQ&RPPLWWHH&+)IRUWKH5HPXQHUDWLRQ&RPPLWWHHDQG&+)IRU6HQLRU,QGHSHQGHQWPHPEHUVKLSIHH
 6LU0LFKDHO/OHZHOO\Q6PLWKUHWLUHGIURPWKH%RDUGWKH5HPXQHUDWLRQ&RPPLWWHHWKH1RPLQDWLRQ&RPPLWWHHDQGWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHRQ
-XQH)RUWKHUVWKDOIRI6LU0LFKDHO/OHZHOO\Q6PLWKZDLYHGKLVPHPEHUVKLSIHHRQ6RFLDO5HVSRQVLELOLW\&RPPLWWHH7KH*URXSKDVDSSOLHGDKDOI\HDU
SHULRGIHHRI&+)IRUWKH1RPLQDWLRQ&RPPLWWHH&KDLUPDQVKLS&+)IRUWKH5HPXQHUDWLRQ&RPPLWWHH&KDLUPDQVKLS&+)IRUWKH6HQLRU
,QGHSHQGHQWPHPEHUVKLSIHHDQGD&+)EDVHIHH
 0U1LJHO0DFGRQDOGUHWLUHGIURPWKH%RDUGDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGIHHRI&+)IRUWKH
$XGLWDQG5LVN&RPPLWWHH&KDLUPDQVKLSDQGD&+)EDVHIHH
 )RU0U$QDVWDVLRV,/HYHQWLVWKH*URXSKDVDSSOLHGDKDOI\HDUSHULRGEDVHIHHRI&+)DQG&+)IRUWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHH&KDLUPDQVKLS
)RUWKHUVWKDOIRI0U$QDVWDVLRV,/HYHQWLVZDLYHGDQ\IHHLQUHVSHFWWRKLVPHPEHUVKLSRQWKH%RDUGRI'LUHFWRUVRUDQ\%RDUG&RPPLWWHH
 )RU0U&KULVWR/HYHQWLVRQWRSRIWKHEDVHIHHRI&+)WKH*URXSSDLG&+)LQVRFLDOVHFXULW\FRQWULEXWLRQVDVUHTXLUHGE\6ZLVVOHJLVODWLRQ7KH*URXS
Supplementary Information

KDVDSSOLHGKDOI\HDUSHULRGEDVHIHH)RUWKHUVWKDOIRI0U&KULVWR/HYHQWLVZDLYHGDQ\IHHLQUHVSHFWWRKLVPHPEHUVKLSRQWKH%RDUGRI'LUHFWRUVRUDQ\
%RDUG&RPPLWWHH
 )RU0U-RV2FWDYLR5H\HVRQWRSRIWKHEDVHIHHRI&+)DQG6RFLDO5HVSRQVLELOLW\&RPPLWWHHPHPEHUVKLSIHHRI&+)WKH*URXSSDLGDVRFLDOVHFXULW\
FRQWULEXWLRQRI&+)
 )RU0UV$OH[DQGUD3DSDOH[RSRXORXRQWRSRIWKHIXOO\HDUEDVHIHHVRI&+)DQG&+)IRUWKH1RPLQDWLRQ&RPPLWWHHWKH*URXSKDVDSSOLHGDKDOI\HDU
SHULRGIHHRI&+)IRUWKH6RFLDO5HVSRQVLELOLW\&RPPLWWHHKDOI\HDUSHULRGPHPEHUVKLSIHHRI&+)DVPHPEHURIWKH5HPXQHUDWLRQ&RPPLWWHHDQG
KDOI\HDUSHULRGIHHRI&+)DV&KDLURIWKH5HPXQHUDWLRQ&RPPLWWHH
 0U5REHUW5\DQ5XGROSKZDVDSSRLQWHGWRWKH%RDUGRQ-XQH)RU0U5REHUW5\DQ5XGROIRQWRSRIWKHEDVHKDOI\HDUIHHRI&+)WKH*URXSSDLGDV
UHTXLUHGE\6ZLVVOHJLVODWLRQDVRFLDOVHFXULW\FRQWULEXWLRQRI&+)
 )RU0U-RKQ6HFKLWKH*URXSKDVDSSOLHGDIXOO\HDUSHULRGIHHRI&+)IRUWKH$XGLWDQG5LVN&RPPLWWHHPHPEHUVKLSDQGD&+)EDVHIHH
 'LPLWULV/RLVFRPSHQVDWLRQLVEDVHGRQKLVUROHDV&(2DQGPHPEHURIWKH2SHUDWLQJ&RPPLWWHHDFFRUGLQJWRKLVHPSOR\PHQWFRQWUDFW0U/RLVLVQRWHQWLWOHGWRDQG
GRHVQRWUHFHLYHDGGLWLRQDOFRPSHQVDWLRQDVD'LUHFWRU

1RQ([HFXWLYH'LUHFWRUVGRQRWSDUWLFLSDWHLQDQ\RIWKH*URXSVLQFHQWLYHSODQVQRUGRWKH\UHFHLYHDQ\UHWLUHPHQWEHQHWV

COC016_.indb 199 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Swiss Statutory Reporting continued

&RPSHQVDWLRQRIWKH%RDUGRI'LUHFWRUV
&+)
Cash and Cash 3HQVLRQDQG Total fair value of
non-cash SHUIRUPDQFH SRVWHPSOR\PHQW VWRFNRSWLRQVDW Total
)HHV EHQHWV1 incentives EHQHWV the date granted FRPSHQVDWLRQ
*HRUJH$'DYLG
$QDVWDVLRV,/HYHQWLV
Christo Leventis
$QDVWDVVLV*'DYLG3  
,ULDO)LQDQ  
$QWRQLR'$PDWR  
&KULVWRV,RDQQRX  
6LU0LFKDHO/OHZHOO\Q6PLWK  
1LJHO0DFGRQDOG  
6XVDQ.LOVE\  
-RV2FWDYLR5H\HV  
-RKQ36HFKL  
$OH[DQGUD3DSDOH[RSRXORX7  
2OXVROD6ROD'DYLG%RUKD8  
'LPLWULV/RLV
Total Board of Directors 747,556 747,556
 $OORZDQFHVFRQVLVWRIFRVWRIOLYLQJDOORZDQFHKRXVLQJVXSSRUW(PSOR\HH6WRFN3XUFKDVH3ODQSULYDWHPHGLFDOLQVXUDQFHUHORFDWLRQH[SHQVHVKRPHWULSDOORZDQFH
OXPSVXPH[SHQVHVDQGVLPLODUDOORZDQFHV
 *HRUJH$'DYLG$QDVWDVLRV,/HYHQWLVDQG&KULVWR/HYHQWLVZDLYHGDQ\DQQXDOIHHLQUHVSHFWRIWKHLUPHPEHUVKLSRIWKH%RDUGRI'LUHFWRUVRUDQ\%RDUG&RPPLWWHH
 :LWKHHFWIURP-XQH0U$QDVWDVVLV'DYLGUHWLUHGIURPWKH&RPSDQ\V1RPLQDWLRQ&RPPLWWHH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGIHHRI&+)
IRUb1RPLQDWLRQ&RPPLWWHHPHPEHUVKLS
 0U&KULVWRV,RDQQRXUHWLUHGIURPWKH%RDUGRI'LUHFWRUVDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGIHHRI&+)
IRU$XGLWDQG5LVN&RPPLWWHHPHPEHUVKLS
 0V6XVDQ.LOVE\UHWLUHGIURPWKH%RDUGWKH5HPXQHUDWLRQ&RPPLWWHHDQGWKH1RPLQDWLRQ&RPPLWWHHRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGIHH
RI&+)IRUWKH1RPLQDWLRQ&RPPLWWHHDQG&+)IRUWKH5HPXQHUDWLRQ&RPPLWWHH
 :LWKHHFWIURP-XQH0U5H\HVUHWLUHGIURPWKH&RPSDQ\V1RPLQDWLRQ&RPPLWWHH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGIHHRI&+)IRUKLV
1RPLQDWLRQ&RPPLWWHHPHPEHUVKLS7KH*URXSSDLGDVUHTXLUHGE\6ZLVVOHJLVODWLRQDVRFLDOVHFXULW\FRQWULEXWLRQRI&+)IRU0U5H\HVLQDGGLWLRQWRKLVIHHV
RIb&+)
 0V$OH[DQGUD3DSDOH[RSRXORXZDVDSSRLQWHGWRWKH%RDUGDQGWKH1RPLQDWLRQ&RPPLWWHHRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRGIHHRI&+)
IRUWKH1RPLQDWLRQ&RPPLWWHHDQG&+)IRUWKH5HPXQHUDWLRQ&RPPLWWHH
 0V2OXVROD6ROD'DYLG%RUKDZDVDSSRLQWHGWRWKH%RDUGRI'LUHFWRUVDQGWKH$XGLWDQG5LVN&RPPLWWHHRQ-XQH7KH*URXSKDVDSSOLHGDKDOI\HDUSHULRG
IHHRI&+)bIRU$XGLWDQG5LVN&RPPLWWHHPHPEHUVKLS7KH*URXSSDLGDVUHTXLUHGE\OHJLVODWLRQDVRFLDOVHFXULW\FRQWULEXWLRQRI&+)IRU0V2OXVROD6ROD
'DYLG%RUKDLQbDGGLWLRQWRIHHVRI&+)
 'LPLWULV/RLVFRPSHQVDWLRQLVEDVHGRQKLVUROHDV&(2DQGPHPEHURIWKH2SHUDWLQJ&RPPLWWHHDFFRUGLQJWRKLVHPSOR\PHQWFRQWUDFW0U/RLVLVQRWHQWLWOHGWR
DQGbGRHVQRWUHFHLYHDGGLWLRQDOFRPSHQVDWLRQDVD'LUHFWRU

1RQ([HFXWLYH'LUHFWRUVGRQRWSDUWLFLSDWHLQDQ\RIWKH*URXSVLQFHQWLYHSODQVQRUGRWKH\UHFHLYHDQ\UHWLUHPHQWEHQHWV

COC016_.indb 200 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
&RPSHQVDWLRQRIWKH2SHUDWLQJ&RPPLWWHH
7KHWRWDOUHPXQHUDWLRQSDLGWRRUDFFUXHGIRUWKH2SHUDWLQJ&RPPLWWHHIRUDPRXQWHGWR&+)PLOOLRQ
2016 CHF
Pension and
Cash and Cash post- Total fair value of
non-cash performance employment stock options at Total
Base salary EHQHWV1 incentives2 EHQHWV3 the date granted4 compensation
'LPLWULV/RLV&KLHI([HFXWLYH2FHU

Corporate Governance
KLJKHVWFRPSHQVDWHGPHPEHURIWKH
2SHUDWLQJ&RPPLWWHH 979,959 605,006 934,732 171,448 2,191,279 4,882,424
2WKHUPHPEHUV 4,541,369 8,872,660 3,551,429 706,926 4,064,975 21,737,359
Total Operating Committee 5,521,328 9,477,666 4,486,161 878,374 6,256,254 26,619,783
 $OORZDQFHVFRQVLVWRIFRVWRIOLYLQJDOORZDQFHKRXVLQJVXSSRUWVFKRROLQJ(PSOR\HH6WRFN3XUFKDVH3ODQSULYDWHPHGLFDOLQVXUDQFHUHORFDWLRQH[SHQVHVHPSOR\HU
VRFLDOVHFXULW\FRQWULEXWLRQVOXPSVXPH[SHQVHVDQGVLPLODUDOORZDQFHV
 7KHERQXVUHSUHVHQWVWKHPRQHWDU\YDOXHWKDWZDVSDLGXQGHU0,3LQUHHFWLQJWKHEXVLQHVVSHUIRUPDQFH
 0HPEHUVRIWKH2SHUDWLQJ&RPPLWWHHSDUWLFLSDWHLQWKHSHQVLRQSODQRIWKHLUHPSOR\LQJHQWLW\DVDSSURSULDWH
 9DOXHVXQGHUORQJWHUPLQFHQWLYHVUHSUHVHQWWKHIDLUYDOXHRISHUIRUPDQFHVKDUHVWKDWDUHH[SHFWHGWRYHVWIRUWKHJUDQWLQRUGHUWRFRPSO\ZLWK6ZLVVUHSRUWLQJ
JXLGHOLQHV
 'LPLWULV/RLVFRPSHQVDWLRQLVEDVHGRQKLVUROHDV&(2DQGPHPEHURIWKH2SHUDWLQJ&RPPLWWHHDFFRUGLQJWRKLVHPSOR\PHQWFRQWUDFW0U/RLVLVQRWHQWLWOHGWRDQG
GRHVQRWUHFHLYHWKH[HGFRPSHQVDWLRQDSSOLFDEOHIRU([HFXWLYH'LUHFWRUVRIWKH%RDUGRI'LUHFWRUV
 -RKQ%UDG\OHIWWKH*URXSRQ'HFHPEHU

Financial Statements
 1D\D.DORJHUDNLZDVDSSRLQWHGWRWKHUROHRI*URXS&RPPHUFLDO'LUHFWRURQ-XO\

7KHWRWDOUHPXQHUDWLRQSDLGWRRUDFFUXHGIRUWKH2SHUDWLQJ&RPPLWWHHIRUDPRXQWHGWR&+)PLOOLRQ
&+)
Cash and Cash 3HQVLRQDQG Total fair value of
non-cash SHUIRUPDQFH SRVWHPSOR\PHQW VWRFNRSWLRQVDW Total

Base salary EHQHWV1 incentives EHQHWV3 the date granted FRPSHQVDWLRQ
'LPLWULV/RLV&KLHI([HFXWLYH2FHU
KLJKHVWFRPSHQVDWHGPHPEHURIWKH
2SHUDWLQJ&RPPLWWHH      
2WKHUPHPEHUV      
Total Operating Committee 5,122,912 4,921,294 2,317,044 834,929 4,686,135 17,882,314

Swiss Statutory Reporting

 $OORZDQFHVFRQVLVWRIFRVWRIOLYLQJDOORZDQFHKRXVLQJVXSSRUWVFKRROLQJ(PSOR\HH6WRFN3XUFKDVH3ODQSULYDWHPHGLFDOLQVXUDQFHUHORFDWLRQH[SHQVHVHPSOR\HU
VRFLDOVHFXULW\FRQWULEXWLRQVOXPSVXPH[SHQVHVDQGVLPLODUDOORZDQFHV
 7KHERQXVUHSUHVHQWVWKHPRQHWDU\YDOXHWKDWZDVSDLGXQGHU0,3LQUHHFWLQJWKHEXVLQHVVSHUIRUPDQFH
 0HPEHUVRIWKH2SHUDWLQJ&RPPLWWHHSDUWLFLSDWHLQWKHSHQVLRQSODQRIWKHLUHPSOR\LQJHQWLW\DVDSSURSULDWH
 9DOXHVXQGHUORQJWHUPLQFHQWLYHVUHSUHVHQWWKHIDLUYDOXHRISHUIRUPDQFHVKDUHVWKDWDUHH[SHFWHGWRYHVWIRUWKHJUDQWLQRUGHUWRFRPSO\ZLWK6ZLVV
UHSRUWLQJJXLGHOLQHV
 'LPLWULV/RLVFRPSHQVDWLRQLVEDVHGRQKLVUROHDV&(2DQGPHPEHURIWKH2SHUDWLQJ&RPPLWWHHDFFRUGLQJWRKLVHPSOR\PHQWFRQWUDFW0U/RLVLVQRWHQWLWOHG
WRbDQGbGRHVQRWUHFHLYHWKH[HGFRPSHQVDWLRQDSSOLFDEOHIRU([HFXWLYH'LUHFWRUVRIWKH%RDUGRI'LUHFWRUV
 -XQH+LUVWVWHSSHGGRZQIURPWKHUROHRI+XPDQ5HVRXUFHV'LUHFWRURQ0D\
 .OHRQ*LDYDVVRJORXUHVLJQHGIURPWKHUROHRI6XSSO\&KDLQ'LUHFWRURQ'HFHPEHU
 6DQGD3DUH]DQRYLFZDVDSSRLQWHGWRWKHUROHRI+XPDQ5HVRXUFHV'LUHFWRURQ-XQH
 0DUFHO0DUWLQZDVDSSRLQWHGWRWKHUROHRI6XSSO\&KDLQ'LUHFWRURQ-DQXDU\

&UHGLWVDQGORDQVJUDQWHGWRJRYHUQLQJERGLHV
Supplementary Information

,QWKHUHZHUHQRFUHGLWVRUORDQVJUDQWHGWRDFWLYHRUIRUPHUPHPEHUVRIWKH&RPSDQ\V%RDUGRI'LUHFWRUVPHPEHUVRIWKH2SHUDWLQJ
&RPPLWWHHRUWRDQ\UHODWHGSHUVRQV7KHUHDUHQRRXWVWDQGLQJFUHGLWVRUORDQV

COC016_.indb 201 3/16/17 2:36 PM

 Coca-Cola HBC
202 2016 Integrated Annual Report

Alternative performance measures

7KH*URXSXVHVFHUWDLQ$OWHUQDWLYH3HUIRUPDQFH0HDVXUHV$30VLQPDNLQJQDQFLDORSHUDWLQJDQGSODQQLQJGHFLVLRQVDVZHOODVLQ

HYDOXDWLQJDQGUHSRUWLQJLWVSHUIRUPDQFH7KHVH$30VSURYLGHDGGLWLRQDOLQVLJKWVDQGXQGHUVWDQGLQJWRWKH*URXSVXQGHUO\LQJRSHUDWLQJDQG
QDQFLDOSHUIRUPDQFHQDQFLDOFRQGLWLRQDQGFDVKRZ7KH$30VVKRXOGEHUHDGLQFRQMXQFWLRQZLWKDQGGRQRWUHSODFHE\DQ\PHDQVWKH
GLUHFWO\UHFRQFLODEOH,)56OLQHLWHPV

'HQLWLRQVDQGUHFRQFLOLDWLRQVRI$OWHUQDWLYH3HUIRUPDQFH0HDVXUHV$30V
&RPSDUDEOH$30V1
,QGLVFXVVLQJWKHSHUIRUPDQFHRIWKH*URXSFRPSDUDEOHPHDVXUHVDUHXVHGZKLFKDUHFDOFXODWHGE\GHGXFWLQJIURPWKHGLUHFWO\
UHFRQFLODEOH,)56PHDVXUHVWKHLPSDFWRIWKH*URXSVUHVWUXFWXULQJFRVWVWKHPDUNWRPDUNHWYDOXDWLRQRIWKHFRPPRGLW\KHGJLQJDFWLYLW\
DQGFHUWDLQRWKHUWD[LWHPVZKLFKDUHFROOHFWLYHO\FRQVLGHUHGDVLWHPVLPSDFWLQJFRPSDUDELOLW\GXHWRWKHLUQDWXUH0RUHVSHFLFDOO\WKH
IROORZLQJLWHPVDUHFRQVLGHUHGDVLWHPVWKDWLPSDFWFRPSDUDELOLW\
5HVWUXFWXULQJFRVWV
5HVWUXFWXULQJFRVWVFRPSULVHFRVWVDULVLQJIURPVLJQLFDQWFKDQJHVLQWKHZD\WKH*URXSFRQGXFWVEXVLQHVVVXFKDVVLJQLFDQWVXSSO\
FKDLQLQIUDVWUXFWXUHFKDQJHVRXWVRXUFLQJRIDFWLYLWLHVDQGFHQWUDOLVDWLRQRISURFHVVHV7KHVHFRVWVDUHLQFOXGHGZLWKLQWKHLQFRPH
VWDWHPHQWOLQH2SHUDWLQJH[SHQVHV+RZHYHUWKH\DUHH[FOXGHGIURPWKHFRPSDUDEOHUHVXOWVLQRUGHUIRUWKHXVHUWRREWDLQDEHWWHU
XQGHUVWDQGLQJRIWKH*URXSVRSHUDWLQJDQGQDQFLDOSHUIRUPDQFHDFKLHYHGIURPXQGHUO\LQJDFWLYLW\
&RPPRGLW\KHGJLQJ
7KH*URXSKDVHQWHUHGLQWRFHUWDLQFRPPRGLW\GHULYDWLYHWUDQVDFWLRQVLQRUGHUWRKHGJHLWVH[SRVXUHWRFRPPRGLW\SULFHULVN$OWKRXJK
WKHVHWUDQVDFWLRQVDUHHFRQRPLFKHGJLQJDFWLYLWLHVWKDWDLPWRPDQDJHRXUH[SRVXUHWRVXJDUDOXPLQLXPDQGJDVRLOSULFHYRODWLOLW\WKH\GR
QRWTXDOLI\IRUKHGJHDFFRXQWLQJ,QDGGLWLRQWKH*URXSUHFRJQLVHVFHUWDLQGHULYDWLYHVHPEHGGHGZLWKLQFRPPRGLW\SXUFKDVHFRQWUDFWV
WKDWKDYHEHHQDFFRXQWHGIRUDVVWDQGDORQHGHULYDWLYHVDQGGRQRWTXDOLI\IRUKHGJHDFFRXQWLQJ7KHIDLUYDOXHJDLQVDQGORVVHVRQWKH
GHULYDWLYHVDQGHPEHGGHGGHULYDWLYHVDUHLPPHGLDWHO\UHFRJQLVHGLQWKHLQFRPHVWDWHPHQWLQWKHFRVWRIJRRGVVROGDQGRSHUDWLQJ
H[SHQVHVOLQHLWHPV7KH*URXSVFRPSDUDEOHUHVXOWVH[FOXGHWKHJDLQVRUORVVHVUHVXOWLQJIURPWKHPDUNWRPDUNHWYDOXDWLRQRIWKHVH
GHULYDWLYHVDQGHPEHGGHGGHULYDWLYHV7KHVHJDLQVRUORVVHVDUHUHHFWHGLQWKHFRPSDUDEOHUHVXOWVLQWKHSHULRGZKHQWKHXQGHUO\LQJ
WUDQVDFWLRQVRFFXUWRPDWFKWKHSURWRUORVVWRWKDWRIWKHFRUUHVSRQGLQJXQGHUO\LQJWUDQVDFWLRQV:HEHOLHYHWKLVDGMXVWPHQWSURYLGHV
XVHIXOLQIRUPDWLRQUHODWHGWRWKHLPSDFWRIRXUHFRQRPLFULVNPDQDJHPHQWDFWLYLWLHV
2WKHUWD[LWHPV
2WKHUWD[LWHPVUHSUHVHQWWKHWD[LPSDFWRIFKDQJHVLQLQFRPHWD[UDWHVDHFWLQJWKHRSHQLQJEDODQFHRIGHIHUUHGWD[DULVLQJGXULQJWKH
\HDULQFOXGHGLQWKH7D[OLQHLWHPRIWKHLQFRPHVWDWHPHQW7KHVHDUHH[FOXGHGIURPFRPSDUDEOHDIWHUWD[UHVXOWVLQRUGHUIRUWKHXVHUWR
REWDLQDEHWWHUXQGHUVWDQGLQJRIWKH*URXSVXQGHUO\LQJQDQFLDOSHUIRUPDQFH
 &RPSDUDEOH$30VUHIHUWRFRPSDUDEOHFRVWRIJRRGVVROGFRPSDUDEOHJURVVSURWFRPSDUDEOHRSHUDWLQJH[SHQVHVFRPSDUDEOH(%,7FRPSDUDEOH(%,7PDUJLQ
FRPSDUDEOH$GMXVWHG(%,7'$FRPSDUDEOHWD[FRPSDUDEOHQHWSURWDQGFRPSDUDEOH(36
7KH*URXSGLVFORVHVFRPSDUDEOHSHUIRUPDQFHPHDVXUHVWRHQDEOHXVHUVWRIRFXVRQWKHXQGHUO\LQJSHUIRUPDQFHRIWKHEXVLQHVVRQDEDVLV
ZKLFKLVFRPPRQWRERWKSHULRGVIRUZKLFKWKHVHPHDVXUHVDUHSUHVHQWHG
7KHUHFRQFLOLDWLRQRIFRPSDUDEOHPHDVXUHVWRWKHGLUHFWO\UHODWHGPHDVXUHVFDOFXODWHGLQDFFRUGDQFHZLWK,)56LVDVIROORZV

5HFRQFLOLDWLRQRIFRPSDUDEOHQDQFLDOLQGLFDWRUVQXPEHUVLQPLOOLRQH[FHSWSHUVKDUHGDWD
2016
Cost of Operating Adjusted EPS
JRRGV{VROG *URVVSURW expenses EBIT EBITDA Tax 1HWSURW1 ()
As reported (3,920) 2,299 (1,793) 506 846 (114) 344 0.949
5HVWUXFWXULQJFRVWV 38 38 20 (8) 30 0.082
&RPPRGLW\KHGJLQJ (25) (25) (2) (27) (27) 8 (19) (0.052)
2WKHUWD[LWHPV (2) (2) (0.007)
&RPSDUDEOH (3,945) 2,274 (1,757) 518 839 (117) 352 0.972
2015
Cost of Operating $GMXVWHG (36
JRRGVVROG *URVVSURW H[SHQVHV (%,7 (%,7'$ 7D[ 1HWSURW1 ()
$VUHSRUWHG    418   280 
5HVWUXFWXULQJFRVWV 54 54  (12) 43 
&RPPRGLW\KHGJLQJ 1 1 1 1 1 
2WKHUWD[LWHPV (10) (10) 
&RPSDUDEOH     804  314 
)LJXUHVDUHURXQGHG
 1HWSURWDQGFRPSDUDEOHQHWSURWUHIHUWRQHWSURWDQGFRPSDUDEOHQHWSURWUHVSHFWLYHO\DIWHUWD[DWWULEXWDEOHWRRZQHUVRIWKHSDUHQW1HWSURWIRULQFOXGHV
bPLOOLRQIURPUHVWUXFWXULQJZLWKLQMRLQWYHQWXUHV

COC016_.indb 202 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 203

Strategic Report
5HFRQFLOLDWLRQRI&RPSDUDEOH(%,7SHUUHSRUWDEOHVHJPHQWQXPEHUVLQPLOOLRQ
2016
(VWDEOLVKHG 'HYHORSLQJ Emerging &RQVROLGDWHG
EBIT 237 93 177 506
5HVWUXFWXULQJFRVWV 9 6 22 38
&RPPRGLW\KHGJLQJ (4) (2) (21) (27)
&RPSDUDEOH(%,7 242 97 178 518

Corporate Governance
2015
(VWDEOLVKHG 'HYHORSLQJ (PHUJLQJ &RQVROLGDWHG
(%,7    418
5HVWUXFWXULQJFRVWV 24  21 54
&RPPRGLW\KHGJLQJ 4 2 (5) 1
&RPSDUDEOH(%,7    
)LJXUHVDUHURXQGHG

);QHXWUDO$30V
$EXVLQHVVOLNHRXUVRSHUDWLQJLQFRXQWULHVDQGZLWKPDQ\GLHUHQWFXUUHQFLHVLVERXQGWREHDHFWHGE\IRUHLJQH[FKDQJHPRYHPHQWV
DQGZHUHSRUWRXUQDQFLDOUHVXOWVWRUHHFWWKLV+RZHYHUZHPDQDJHWKHEXVLQHVVDJDLQVWWDUJHWVZKLFKDUHVHWWREHFRPSDUDEOHEHWZHHQ

Financial Statements
\HDUVDQGZLWKLQWKHPIRURWKHUZLVHIRUHLJQFXUUHQF\PRYHPHQWVZRXOGXQGHUPLQHRXUDELOLW\WRGULYHWKHEXVLQHVVIRUZDUGDQGFRQWUROLW
7KURXJKWKLV5HSRUWDVLQSUHYLRXV\HDUVZHZLOOKLJKOLJKWFRPSDUDEOHUHVXOWVDQGIRUHLJQH[FKDQJHQHXWUDOUHVXOWVDVZHOODVWKHDXGLWHG
UHVXOWVZKLFKUHHFWWKHDFWXDOIRUHLJQFXUUHQF\HHFWVH[SHULHQFHG,WLVWKURXJKWKHUHOHQWOHVVIRFXVRQPDQDJLQJE\XVLQJFRPSDUDEOH
JXUHVWKDWZHKDYHVXFFHHGHGLQGHOLYHULQJVLJQLFDQWO\LPSURYHGSHUIRUPDQFHDOWKRXJKZHUHFRJQLVHWKDWLQWKHVKRUWHUWHUPFXUUHQF\
PRYHPHQWVPD\GLVWRUWWKHXQGHUO\LQJWUHQGV
7KH*URXSWKHUHIRUHDOVRHYDOXDWHVLWVRSHUDWLQJDQGQDQFLDOSHUIRUPDQFHRQDQ);QHXWUDOEDVLVLHZLWKRXWJLYLQJHHFWWRWKHLPSDFWRI
YDULDWLRQRIbIRUHLJQFXUUHQF\H[FKDQJHUDWHVIURPSHULRGWRSHULRG);QHXWUDO$30VDUHFDOFXODWHGE\DGMXVWLQJSULRUSHULRGDPRXQWVIRUWKH
LPSDFWRIbH[FKDQJHUDWHVDSSOLFDEOHWRWKHFXUUHQWSHULRG);QHXWUDOPHDVXUHVHQDEOHXVHUVWRIRFXVRQWKHSHUIRUPDQFHRIWKHEXVLQHVVRQ
DEDVLVZKLFKLVQRWDHFWHGE\FKDQJHVLQIRUHLJQFXUUHQF\H[FKDQJHUDWHVDSSOLFDEOHWRWKH*URXSVRSHUDWLQJDFWLYLWLHVIURPSHULRGWR
SHULRG7KHbPRVWFRPPRQ);QHXWUDOPHDVXUHVXVHGbE\WKH*URXSDUH
);QHXWUDOQHWVDOHVUHYHQXHDQG);QHXWUDOQHWVDOHVUHYHQXHSHUXQLWFDVH

Swiss Statutory Reporting

);QHXWUDOQHWVDOHVUHYHQXHDQG);QHXWUDOQHWVDOHVUHYHQXHSHUXQLWFDVHDUHFDOFXODWHGE\DGMXVWLQJSULRUSHULRGQHWVDOHVUHYHQXH
IRUbWKHLPSDFWRIFKDQJHVLQH[FKDQJHUDWHVDSSOLFDEOHLQbWKHFXUUHQWSHULRG
);QHXWUDOFRPSDUDEOHLQSXWFRVWVSHUXQLWFDVH
);QHXWUDOFRPSDUDEOHLQSXWFRVWVSHUXQLWFDVHLVFDOFXODWHGE\DGMXVWLQJSULRUSHULRGFRPPRGLW\FRVWVDQGPRUHVSHFLFDOO\VXJDUUHVLQ
DOXPLQLXPDQGIXHOFRPPRGLW\FRVWVH[FOXGLQJFRPPRGLW\KHGJLQJDVGHVFULEHGDERYHDQGRWKHUUDZPDWHULDOVFRVWVIRUWKHLPSDFW
RIbFKDQJHVLQH[FKDQJHUDWHVDSSOLFDEOHLQWKHFXUUHQWSHULRG
7KHFDOFXODWLRQVRIWKH);QHXWUDO$30VDQGWKHUHFRQFLOLDWLRQWRWKHPRVWGLUHFWO\UHODWHGPHDVXUHVFDOFXODWHGLQDFFRUGDQFHZLWK,)56DUH
DVIROORZV

5HFRQFLOLDWLRQRI);QHXWUDOQHWVDOHVUHYHQXHSHUXQLWFDVHQXPEHUVLQPLOOLRQXQOHVVRWKHUZLVHVWDWHG
2016
Supplementary Information

(VWDEOLVKHG 'HYHORSLQJ Emerging &RQVROLGDWHG

Net sales revenue 2,408 1,094 2,717 6,219
&XUUHQF\LPSDFW
);QHXWUDOQHWVDOHVUHYHQXH 2,408 1,094 2,717 6,219
Volume (m unit cases) 607 383 1,068 2,058
);QHXWUDOQHWVDOHVUHYHQXHSHUXQLWFDVHb 3.97 2.85 2.54 3.02
2015
(VWDEOLVKHG 'HYHORSLQJ (PHUJLQJ &RQVROLGDWHG
Net sales revenue    
&XUUHQF\LPSDFW (28) (18)  (308)
);QHXWUDOQHWVDOHVUHYHQXH    
Volume (m unit cases)    
);QHXWUDOQHWVDOHVUHYHQXHSHUXQLWFDVH    
)LJXUHVDUHURXQGHG

COC016_.indb 203 3/16/17 2:36 PM

 Coca-Cola HBC
204 2016 Integrated Annual Report

$OWHUQDWLYHSHUIRUPDQFHPHDVXUHVFRQWLQXHG

2WKHU$30V
Adjusted EBITDA
$GMXVWHG(%,7'$LVFDOFXODWHGE\DGGLQJEDFNWRRSHUDWLQJSURWWKHGHSUHFLDWLRQDQGLPSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQW
WKHbDPRUWLVDWLRQDQGLPSDLUPHQWRILQWDQJLEOHDVVHWVWKHHPSOR\HHVKDUHRSWLRQDQGSHUIRUPDQFHVKDUHFRVWVDQGLWHPVLIDQ\UHSRUWHGLQ
WKHOLQH2WKHUQRQFDVKLWHPVRIWKHFRQVROLGDWHGFDVKRZVWDWHPHQW$GMXVWHG(%,7'$LVLQWHQGHGWRSURYLGHXVHIXOLQIRUPDWLRQWRDQDO\VH
WKH*URXSVRSHUDWLQJSHUIRUPDQFHH[FOXGLQJWKHLPSDFWRIRSHUDWLQJQRQFDVKLWHPVDVGHQHGDERYH,WLVDOVRLQWHQGHGWRPHDVXUHWKH
OHYHORIQDQFLDOOHYHUDJHRIWKH*URXSE\FRPSDULQJ$GMXVWHG(%,7'$WR1HWGHEW
$GMXVWHG(%,7'$LVQRWDPHDVXUHRISURWDELOLW\DQGOLTXLGLW\XQGHU,)56DQGKDVOLPLWDWLRQVVRPHRIZKLFKDUHDVIROORZV$GMXVWHG(%,7'$
GRHVQRWUHHFWRXUFDVKH[SHQGLWXUHVRUIXWXUHUHTXLUHPHQWVIRUFDSLWDOH[SHQGLWXUHVRUFRQWUDFWXDOFRPPLWPHQWV$GMXVWHG(%,7'$GRHV
QRWUHHFWFKDQJHVLQRUFDVKUHTXLUHPHQWVIRURXUZRUNLQJFDSLWDOQHHGVDQGDOWKRXJKGHSUHFLDWLRQDQGDPRUWLVDWLRQDUHQRQFDVKFKDUJHV
WKHbDVVHWVEHLQJGHSUHFLDWHGDQGDPRUWLVHGZLOORIWHQKDYHWREHUHSODFHGLQWKHIXWXUHDQG$GMXVWHG(%,7'$GRHVQRWUHHFWDQ\FDVK
UHTXLUHPHQWVIRUVXFKUHSODFHPHQWV%HFDXVHRIWKHVHOLPLWDWLRQV$GMXVWHG(%,7'$VKRXOGQRWEHFRQVLGHUHGDVDPHDVXUHRIGLVFUHWLRQDU\
FDVKDYDLODEOHWRXVDQGVKRXOGEHXVHGRQO\DVDVXSSOHPHQWDU\$30

)UHHFDVKRZ
)UHHFDVKRZLVDQ$30XVHGE\WKH*URXSDQGGHQHGDVFDVKJHQHUDWHGE\RSHUDWLQJDFWLYLWLHVDIWHUSD\PHQWVIRUSXUFKDVHVRISURSHUW\
SODQWDQGHTXLSPHQWQHWRISURFHHGVIURPVDOHVRISURSHUW\SODQWDQGHTXLSPHQWDQGLQFOXGLQJSULQFLSDOUHSD\PHQWVRIQDQFHOHDVH
REOLJDWLRQV)UHHFDVKRZLVLQWHQGHGWRPHDVXUHWKHFDVKJHQHUDWLRQIURPWKH*URXSVEXVLQHVVEDVHGRQRSHUDWLQJDFWLYLWLHVLQFOXGLQJWKH
HFLHQWXVHRIZRUNLQJFDSLWDODQGWDNLQJLQWRDFFRXQWLWVQHWSD\PHQWVIRUSXUFKDVHVRISURSHUW\SODQWDQGHTXLSPHQW7KH*URXSFRQVLGHUV
WKHSXUFKDVHDQGGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQWDVXOWLPDWHO\QRQGLVFUHWLRQDU\VLQFHRQJRLQJLQYHVWPHQWLQSODQWPDFKLQHU\
WHFKQRORJ\DQGPDUNHWLQJHTXLSPHQWLQFOXGLQJFRROHUVLVUHTXLUHGWRVXSSRUWWKHGD\WRGD\RSHUDWLRQVDQGWKH&&+%&*URXSVJURZWK
SURVSHFWV7KH*URXSSUHVHQWVIUHHFDVKRZEHFDXVHLWEHOLHYHVWKHPHDVXUHDVVLVWVXVHUVRIWKHQDQFLDOVWDWHPHQWVLQXQGHUVWDQGLQJ
WKHb*URXSVFDVKJHQHUDWLQJSHUIRUPDQFHDVZHOODVDYDLODELOLW\IRULQWHUHVWSD\PHQWGLYLGHQGGLVWULEXWLRQDQGRZQUHWHQWLRQ7KHIUHHFDVK
RZPHDVXUHLVXVHGE\PDQDJHPHQWIRULWVRZQSODQQLQJDQGUHSRUWLQJSXUSRVHVVLQFHLWSURYLGHVLQIRUPDWLRQRQRSHUDWLQJFDVKRZV
ZRUNLQJFDSLWDOFKDQJHVDQGQHWFDSLWDOH[SHQGLWXUHWKDWORFDOPDQDJHUVDUHPRVWGLUHFWO\DEOHWRLQXHQFH
)UHHFDVKRZLVQRWDPHDVXUHRIFDVKJHQHUDWLRQXQGHU,)56DQGKDVOLPLWDWLRQVVRPHRIZKLFKDUHDVIROORZVIUHHFDVKRZGRHVQRW
UHSUHVHQWWKH*URXSVUHVLGXDOFDVKRZDYDLODEOHIRUGLVFUHWLRQDU\H[SHQGLWXUHVVLQFHWKH*URXSKDVGHEWSD\PHQWREOLJDWLRQVWKDWDUHQRW
GHGXFWHGIURPWKHPHDVXUHIUHHFDVKRZGRHVQRWGHGXFWFDVKRZVXVHGE\WKH*URXSLQRWKHULQYHVWLQJDQGQDQFLQJDFWLYLWLHVDQGIUHH
FDVKRZGRHVQRWGHGXFWFHUWDLQLWHPVVHWWOHGLQFDVK)XUWKHUPRUHRWKHUFRPSDQLHVLQWKHLQGXVWU\LQZKLFKWKH*URXSRSHUDWHVPD\
FDOFXODWHIUHHFDVKRZGLHUHQWO\OLPLWLQJLWVXVHIXOQHVVDVDFRPSDUDWLYHPHDVXUH

COC016_.indb 204 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 205

Strategic Report
Capital expenditure
7KH*URXSXVHVFDSLWDOH[SHQGLWXUHDVDQ$30WRHQVXUHWKDWLWVFDVKVSHQGLQJLVLQOLQHZLWKLWVRYHUDOOVWUDWHJ\IRUWKHXVHRIFDVK&DSLWDO
H[SHQGLWXUHLVGHQHGDVSD\PHQWVIRUSXUFKDVHVRISURSHUW\SODQWDQGHTXLSPHQWSOXVSULQFLSDOUHSD\PHQWVRIQDQFHOHDVHREOLJDWLRQVOHVV
SURFHHGVIURPVDOHRISURSHUW\SODQWDQGHTXLSPHQW
7KHIROORZLQJWDEOHLOOXVWUDWHVKRZ$GMXVWHG(%,7'$IUHHFDVKRZDQGFDSLWDOH[SHQGLWXUHDUHFDOFXODWHG
2016 2015
bPLOOLRQ bPLOOLRQ

Corporate Governance
2SHUDWLQJSURW(%,7 506 418
'HSUHFLDWLRQDQGLPSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQW 332 340
$PRUWLVDWLRQRILQWDQJLEOHDVVHWV
(PSOR\HHVKDUHRSWLRQVDQGSHUIRUPDQFHVKDUHV 8 
2WKHUQRQFDVKLWHPVLQFOXGHGLQRSHUDWLQJLQFRPH (1) (1)
Adjusted EBITDA 846 766
*DLQVORVVHVRQGLVSRVDORIQRQFXUUHQWDVVHWV (3) 2
'HFUHDVHLQZRUNLQJFDSLWDO 12 44
7D[SDLG (92) 
1HWFDVKIURPRSHUDWLQJDFWLYLWLHV 763 740

Financial Statements
3D\PHQWVIRUSXUFKDVHVRISURSHUW\SODQWDQGHTXLSPHQW (348) (332)
3ULQFLSDOUHSD\PHQWVRIQDQFHOHDVHREOLJDWLRQV (20) (14)
3URFHHGVIURPVDOHRISURSHUW\SODQWDQGHTXLSPHQW 36 18
&DSLWDOH[SHQGLWXUH (332) (328)

Net cash from operating activities 763 

&DSLWDOH[SHQGLWXUH (332) (328)
)UHHFDVKRZ 431 412
)LJXUHVDUHURXQGHG

Net debt

Swiss Statutory Reporting

1HWGHEWLVDQ$30XVHGE\PDQDJHPHQWWRHYDOXDWHWKH*URXSVFDSLWDOVWUXFWXUHDQGOHYHUDJH1HWGHEWLVGHQHGDVVKRUWWHUP
ERUURZLQJVSOXVORQJWHUPERUURZLQJVOHVVFDVKDQGFDVKHTXLYDOHQWVDVLOOXVWUDWHGEHORZ
$VDW'HFHPEHU
2016 2015
bPLOOLRQ bPLOOLRQ
/RQJWHUPERUURZLQJV 1,468 
6KRUWWHUPERUURZLQJV 157 
&DVKDQGFDVKHTXLYDOHQWV (573) 
Net debt 1,051 1,217
)LJXUHVDUHURXQGHG
Supplementary Information

COC016_.indb 205 3/16/17 2:36 PM

  Coca-Cola HBC
2016 Integrated Annual Report

Assurance statement

,QGHSHQGHQW$VVXUDQFH6WDWHPHQWRQWKH,QWHJUDWHG$QQXDO5HSRUW
7RWKHPDQDJHPHQWDQGVWDNHKROGHUVRI&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\$*
GHQNVWDWW*PE+ZDVFRPPLVVLRQHGE\&RFD&ROD+HOOHQLF%RWWOLQJ&RPSDQ\$*KHUHLQDIWHUUHIHUUHGWRDVWKH&RPSDQ\WRSURYLGH
LQGHSHQGHQWWKLUGSDUW\DVVXUDQFHLQDFFRUGDQFHZLWKWKH$$$VVXUDQFH6WDQGDUG$$$6IRUWKHSULQWHGDQGGRZQORDGDEOHSGI
YHUVLRQVRIWKH&RPSDQ\V,QWHJUDWHG$QQXDO5HSRUWKHUHLQDIWHUUHIHUUHGWRDVWKH5HSRUW:HKDYHUHYLHZHGDOOVXVWDLQDELOLW\
UHOHYDQWFRQWHQWDQGGDWDLQFOXGHGLQWKH5HSRUW)LQDQFLDOGDWDZHUHQRWUHYLHZHGDVSDUWRIWKLVSURFHVV
7KHDVVXUDQFHHQJDJHPHQWFRYHUHGWKHQDWXUHDQGH[WHQWRIWKH&RPSDQ\VLQFRUSRUDWLRQRIWKHSULQFLSOHVRILQFOXVLYLW\PDWHULDOLW\DQG
UHVSRQVLYHQHVVIRUVWDNHKROGHUGLDORJXHFRQWDLQHGLQWKH$$6HULHV7KHDSSOLFDWLRQOHYHORIWKH*OREDO5HSRUWLQJ,QLWLDWLYH*5,*WKH
*5,*)RRG3URFHVVLQJ6HFWRU6XSSOHPHQWDQGWKH&'6%&OLPDWH&KDQJH5HSRUWLQJ)UDPHZRUNKDYHEHHQYHULHG

0DQDJHPHQWUHVSRQVLELOLWLHV
7KH&RPSDQ\VPDQDJHPHQWLVUHVSRQVLEOHIRUSUHSDULQJWKH5HSRUWVWDWHPHQWVZLWKLQLWDQGUHODWHGZHEVLWHFRQWHQW0DQDJHPHQWLVDOVR
UHVSRQVLEOHIRULGHQWLI\LQJVWDNHKROGHUVDQGPDWHULDOLVVXHVGHQLQJFRPPLWPHQWVZLWKUHVSHFWWRVXVWDLQDELOLW\SHUIRUPDQFHDQGIRU
HVWDEOLVKLQJDQGPDLQWDLQLQJDSSURSULDWHSHUIRUPDQFHPDQDJHPHQWDQGLQWHUQDOFRQWUROV\VWHPVIURPZKLFKUHSRUWHGLQIRUPDWLRQLVGHULYHG
7KH&RPSDQ\VPDQDJHPHQWLVDOVRUHVSRQVLEOHIRUHVWDEOLVKLQJGDWDFROOHFWLRQDQGLQWHUQDOFRQWUROV\VWHPVWRHQVXUHUHOLDEOHUHSRUWLQJ
VSHFLI\LQJDFFHSWDEOHUHSRUWLQJFULWHULDDQGVHOHFWLQJGDWDWREHFROOHFWHGIRUWKHSXUSRVHVRIWKH5HSRUW0DQDJHPHQWUHVSRQVLELOLWLHVDOVR
H[WHQGWRSUHSDULQJWKH5HSRUWLQDFFRUGDQFHZLWKWKH*5,*6XVWDLQDELOLW\5HSRUWLQJ*XLGHOLQHV

$VVXUDQFHSURYLGHUVUHVSRQVLELOLWLHV
2XUUHVSRQVLELOLWLHVDUHWR
H[SUHVVRXUFRQFOXVLRQVDQGPDNHUHFRPPHQGDWLRQVRQWKHQDWXUHDQGH[WHQWRIWKH&RPSDQ\VDGKHUHQFHWRWKH$$$FFRXQWDELOLW\
3ULQFLSOHV6WDQGDUG$36
H[SUHVVRXUFRQFOXVLRQVRQWKHUHOLDELOLW\RIWKHLQIRUPDWLRQLQWKH5HSRUWDQGZKHWKHULWLVLQDFFRUGDQFHZLWKWKHFULWHULDLQWKH*5,
*JXLGHOLQHV
H[SUHVVRXUFRQFOXVLRQVDQGPDNHUHFRPPHQGDWLRQVRQWKHQDWXUHDQGH[WHQWRIWKH&RPSDQ\VDGKHUHQFHWRWKH&'6%&OLPDWH&KDQJH
5HSRUWLQJ)UDPHZRUN
2XUWHDPRIH[SHUWVKDVH[WHQVLYHSURIHVVLRQDOH[SHULHQFHRIDVVXUDQFHHQJDJHPHQWVUHODWHGWRQRQQDQFLDOLQIRUPDWLRQDQGVXVWDLQDELOLW\
PDQDJHPHQWPHDQLQJLWLVTXDOLHGWRFRQGXFWWKLVLQGHSHQGHQWDVVXUDQFHHQJDJHPHQW'XULQJZHGLGQRWSHUIRUPDQ\WDVNVRU
VHUYLFHVIRUWKH&RPSDQ\RURWKHUFOLHQWVZKLFKZRXOGOHDGWRDFRQLFWRILQWHUHVWQRUZHUHZHUHVSRQVLEOHIRUWKHSUHSDUDWLRQRIDQ\SDUWRI
WKH5HSRUW

6FRSHVWDQGDUGVDQGFULWHULDXVHG
:HKDYHIXOOOHGRXUUHVSRQVLELOLWLHVWRSURYLGHDSSURSULDWHDVVXUDQFHWKDWWKHLQIRUPDWLRQLQWKH5HSRUWLVIUHHRIPDWHULDOPLVVWDWHPHQWV:H
SODQQHGDQGFDUULHGRXWRXUZRUNEDVHGRQWKH*5,*JXLGHOLQHVWKH$$6HULHVDQGWKH&'6%&OLPDWH&KDQJH5HSRUWLQJ)UDPHZRUN
:HXVHGWKHFULWHULDLQ$$$36WRSHUIRUPD7\SHHQJDJHPHQWDQGWRSURYLGHKLJKDVVXUDQFHUHJDUGLQJWKHQDWXUHDQGH[WHQWRIWKH
&RPSDQ\VDGKHUHQFHWRWKHSULQFLSOHVRILQFOXVLYLW\PDWHULDOLW\DQGUHVSRQVLYHQHVV

0HWKRGRORJ\DSSURDFKOLPLWDWLRQVDQGVFRSHRIZRUN
:HSODQQHGDQGFDUULHGRXWRXUZRUNLQRUGHUWRREWDLQDOOWKHHYLGHQFHLQIRUPDWLRQDQGH[SODQDWLRQVWKDWZHFRQVLGHUHGQHFHVVDU\LQUHODWLRQ
WRWKHDERYHUHVSRQVLELOLWLHV2XUZRUNLQFOXGHGWKHIROORZLQJSURFHGXUHVZKLFKLQYROYHGDUDQJHRIHYLGHQFHJDWKHULQJDFWLYLWLHV
*DWKHULQJLQIRUPDWLRQDQGFRQGXFWLQJLQWHUYLHZVZLWKPHPEHUVRIWKHH[HFXWLYHPDQDJHPHQWVWDIURPWKHVXVWDLQDELOLW\GHSDUWPHQW
WKHKXPDQUHVRXUFHVGHSDUWPHQWWKHSURFXUHPHQWGHSDUWPHQWWKHSURGXFWTXDOLW\DQGVDIHW\GHSDUWPHQWDQGWKHSXEOLFDDLUVDQG
FRPPXQLFDWLRQGHSDUWPHQWDVZHOODVYDULRXV*URXSOHYHOIXQFWLRQDOPDQDJHUVUHJDUGLQJWKH&RPSDQ\VDGKHUHQFHWRWKHSULQFLSOHVRI
LQFOXVLYLW\PDWHULDOLW\DQGUHVSRQVLYHQHVV7KLVLQFOXGHVWKHFRPPLWPHQWRIWKH&RPSDQ\VPDQDJHPHQWWRWKHVHSULQFLSOHVWKHH[LVWHQFH
RIV\VWHPVDQGSURFHGXUHVWRVXSSRUWDGKHUHQFHWRWKHSULQFLSOHVDQGWKHHPEHGGLQJRIWKHSULQFLSOHVDWFRXQWU\OHYHO7KHNH\WRSLFVRI
WKHLQWHUYLHZVFRQGXFWHGDW*URXSOHYHOZHUHKXPDQULJKWVDQGGLYHUVLW\FRUSRUDWHJRYHUQDQFHEXVLQHVVHWKLFVDQGDQWLFRUUXSWLRQ
HQYLURQPHQWDOSURWHFWLRQSDFNDJLQJVXVWDLQDEOHVRXUFLQJRFFXSDWLRQDOKHDOWKDQGVDIHW\DQGLPSDFWPHDVXUHPHQWDQGYDOXDWLRQV
&RQGXFWLQJIXUWKHULQWHUYLHZVDWQDWLRQDOKHDGTXDUWHUVLQ$UPHQLDWKH&]HFK5HSXEOLF*UHHFH1LJHULD3RODQG5XVVLDDQG6ZLW]HUODQGLQ
RUGHUWRJXDUDQWHHWKHFRPSOHWHQHVVRIWKHLQIRUPDWLRQUHTXLUHGIRUWKHDXGLW

COC016_.indb 206 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

Strategic Report
6LWHYLVLWVWRHLJKWERWWOLQJSODQWVZLWKDIRFXVRQ(PHUJLQJDQG'HYHORSLQJPDUNHWV
(VWDEOLVKHGPDUNHWV+HUDNOLRQ*UHHFH9DOV6ZLW]HUODQG
'HYHORSLQJPDUNHWV3UDJXH&]HFK5HSXEOLF6WDQLDWNL3RODQG
(PHUJLQJPDUNHWV-RVDQG.DGXQD1LJHULD0RVFRZ5XVVLD<HUHYDQ$UPHQLD
0DNLQJHQTXLULHVDQGFRQGXFWLQJVSRWFKHFNVWRDVVHVVLPSOHPHQWDWLRQRIWKH&RPSDQ\VSROLFLHVDWSODQWFRXQWU\DQGFRUSRUDWHOHYHO
0DNLQJHQTXLULHVDQGFRQGXFWLQJVSRWFKHFNVZLWKUHJDUGWRGRFXPHQWDWLRQUHTXLUHGWRDVVHVVFXUUHQWGDWDFROOHFWLRQV\VWHPVDQG

Corporate Governance
SURFHGXUHVLQSODFHWRHQVXUHUHOLDEOHDQGFRQVLVWHQWUHSRUWLQJIURPWKHSODQWVWRWKHFRUSRUDWHOHYHO
&RQGXFWLQJDGGLWLRQDOLQWHUYLHZVZLWKVHYHQUHSUHVHQWDWLYHVRIWKHIROORZLQJH[WHUQDOVWDNHKROGHUJURXSVFXVWRPHUVVXSSOLHUVDFDGHPLD
QRQJRYHUQPHQWDORUJDQLVDWLRQVDQGHPSOR\HHUHSUHVHQWDWLYHV7KHLQWHUYLHZVZHUHFRQGXFWHGGXULQJWKH-RLQW$QQXDO6WDNHKROGHU
)RUXPRIWKH&RPSDQ\DQG7KH&RFD&ROD&RPSDQ\LQ$WKHQV
9HULI\LQJDOOWKUHHLQYHQWRU\VFRSHVVFRSHVDQGDVGHQHGE\WKH*+*3URWRFROLQFOXGLQJSURJUHVVDJDLQVWHPLVVLRQUHGXFWLRQ
WDUJHWVUHSRUWHGFKDQJHVLQHPLVVLRQVFRPSDUHGZLWKEDVH\HDUVDQGDQGHPLVVLRQVLQWHQVLW\JXUHVIRU
9HULI\LQJWKHVHSDUDWHO\SXEOLVKHG*5,LQGH[WRWKH5HSRUWWRHQVXUHFRQVLVWHQF\ZLWKWKHUHTXLUHPHQWVRI*5,*FRPSUHKHQVLYH
7KHVFRSHRIWKHDVVXUDQFHFRYHUHGDOORIWKHLQIRUPDWLRQUHOHYDQWWRVXVWDLQDELOLW\LQWKH5HSRUWDQGIRFXVHGRQ&RPSDQ\V\VWHPVDQG
DFWLYLWLHVGXULQJWKHUHSRUWLQJSHULRG7KHIROORZLQJFKDSWHUVZHUHQRWFRYHUHGLQWKHVXVWDLQDELOLW\DVVXUDQFHSURFHVV
&RUSRUDWH*RYHUQDQFH)LQDQFLDO6WDWHPHQWV6XSSOHPHQWDU\,QIRUPDWLRQDQG6ZLVV6WDWXWRU\5HSRUWLQJ

Financial Statements
3RVLWLYHGHYHORSPHQWV
&RPPLWPHQWVLQWKH&RPSDQ\DGRSWHGVHYHQQHZ6XVWDLQDELOLW\&RPPLWPHQWVLQUHVSHFWRIZDWHUHQHUJ\FOHDQ
HQHUJ\FDUERQIRRWSULQWVXVWDLQDEOHSDFNDJLQJVXVWDLQDEOHDJULFXOWXUHSDFNDJLQJUHF\FOLQJDQGUHFRYHU\DQGFRPPXQLW\LQYHVWPHQW
$FFRXQWLQJIRU6XVWDLQDELOLW\DIWHUODVW\HDUVODXQFKWKH&RPSDQ\FRQWLQXHGWKHVXFFHVVIXOLPSOHPHQWDWLRQRIWKH$FFRXQWLQJIRU
6XVWDLQDELOLW\DSSURDFK7KHIROORZLQJWRSLFVZHUHFRYHUHGWKHVRFLDOSULFHRIFDUERQWKHWUXHFRVWRIZDWHUDQGZDWHUULVNVIRU
LQYHVWPHQWSURMHFWV
(PSOR\HHHQJDJHPHQWDIWHUODVW\HDUV(PSOR\HH(QJDJHPHQW6XUYH\WDUJHWHGIROORZXSDFWLYLWLHVZHUHGHYHORSHGDQGLPSOHPHQWHG
WKHVHKDYHFRQWULEXWHGWRH[FHOOHQWUHVXOWVWKLV\HDU
&RUSRUDWHFLWL]HQVKLSWKH&RPSDQ\GHPRQVWUDWHGJRRGFRUSRUDWHFLWL]HQVKLSLQWKHSURFHVVRIFORVLQJWKH/XNDSODQWLQ6ORYDNLDE\
VHWWLQJXSDJUDQWIXQGWRVXSSRUWVPDOOSURMHFWVLQWKHWUDQVLWLRQSHULRGDQGLQSURYLGLQJKXPDQLWDULDQDVVLVWDQFHWRUHIXJHHVLQ+HUDNOLRQ

Swiss Statutory Reporting

*UHHFHDQGLQWHUQDOO\GLVSODFHGSHUVRQVLQ0DLGXJXUL1LJHULD
%XVLQHVVHWKLFVWKH&RPSDQ\KDVSDVVHGWKHWDUJHWRIRIHPSOR\HHVUHFHLYLQJWUDLQLQJLQWKH&RGHRI%XVLQHVV&RQGXFW&2%&DQG
VHWDQHZWDUJHWRIRIHPSOR\HHVE\)XUWKHUPRUHWKH&RPSDQ\KDVVXFFHVVIXOO\FRQWLQXHGWKHLPSOHPHQWDWLRQRI(WKLFV
&RPPLWWHHVLQDOOFRXQWULHV
+XPDQULJKWVWKH+XPDQ5LJKWV3ROLF\ZDVXSGDWHGLQWUDQVODWHGLQWRODQJXDJHVDQGUROOHGRXWLQDOOFRXQWULHV
)LQGLQJVDQGFRQFOXVLRQVUHJDUGLQJDGKHUHQFHWRWKH$$SULQFLSOHVRILQFOXVLYLW\PDWHULDOLW\UHVSRQVLYHQHVVDQGVSHFLFSHUIRUPDQFH
UHODWHGLQIRUPDWLRQ

Inclusivity
*URXSOHYHOWKH&RPSDQ\PDLQWDLQVDFRPSUHKHQVLYHDQGHFLHQWVWDNHKROGHUHQJDJHPHQWSURFHVVDW*URXSOHYHO,WVFRUQHUVWRQHVDUH
WKHDQQXDOLQWHUQDODQGH[WHUQDOVWDNHKROGHUVXUYH\DQGWKH$QQXDO6WDNHKROGHU)RUXPKHOGLQ$WKHQVLQ
Supplementary Information

&RXQWU\DQGSODQWOHYHOYDULRXVVWDNHKROGHUPDQDJHPHQWWRROVDUHXVHGDWFRXQWU\HJWKH6WDNHKROGHU0DSSLQJ7RRODQGSODQWOHYHO

HJWKH6WDNHKROGHU0DS (QJDJHPHQW3ODQ7KHVHJLYHGHFLVLRQPDNHUVDFRQFLVHRYHUYLHZRINH\VRFLHWDODFWRUVDQGWKHLUQHHGVDQG
KHOSWKHPGHQHWDLORUHGHQJDJHPHQWVWUDWHJLHV
$PDWHULDOLW\WRRONLWLVEHLQJFRPSLOHGDW*URXSOHYHOZKLFKVKRXOGVXSSRUWDOORSHUDWLRQVLQWKHSURFHVVRIVHWWLQJXSWKHLUPDWHULDOLW\
DVVHVVPHQWSURFHVVHV,QDGGLWLRQDVWDNHKROGHUUHODWLRQVKLSPDQDJHPHQW650WRROLVXQGHUGHYHORSPHQW7KLVWRROHPSOR\VWKH
VWUXFWXUHDQGIXQFWLRQRIFXVWRPHUUHODWLRQVKLSPDQDJHPHQWVRIWZDUHXVHGFRPPRQO\E\EXVLQHVVHVDQGZLOOEHSLORWHGLQ
)HEUXDU\

Materiality
*URXSOHYHOWKHUHLVDKLJKO\GHYHORSHGPDWHULDOLW\DVVHVVPHQWSURFHVVDW*URXSOHYHOZKLFKPRQLWRUVDQGLQWHJUDWHVVWDNHKROGHU
H[SHFWDWLRQVHFLHQWO\7KHUHVXOWVRIWKLVSURFHVVDUHSUHVHQWHGLQWKH,QWHJUDWHG$QQXDO5HSRUWLQWKHFKDSWHUKHDGHG2XU$SSURDFKWR
0DWHULDOLW\
&RXQWU\DQGSODQWOHYHOWKHUHLVPRVWO\DFOHDUXQGHUVWDQGLQJRIZKLFKVXVWDLQDELOLW\LVVXHVDUHRUPLJKWEHFRPHPDWHULDOIRUWKHUHVSHFWLYH
RSHUDWLRQ+RZHYHULQPRVWORFDWLRQVWKHVHDUHQRWLGHQWLHGZLWKLQDV\VWHPDWLFPDWHULDOLW\DVVHVVPHQWSURFHVVEXWUDWKHURQDQDGKRF
EDVLVLQWKHFRXUVHRIGD\WRGD\EXVLQHVV7KHUHIRUHZHUHFRPPHQGWKDWLPSOHPHQWDWLRQRIPDWHULDOLW\DVVHVVPHQWSURFHVVHVDW
FRXQWU\OHYHOEHLQWHQVLHG

COC016_.indb 207 3/16/17 2:36 PM

 Coca-Cola HBC
208 2016 Integrated Annual Report

$VVXUDQFHVWDWHPHQWFRQWLQXHG

5HVSRQVLYHQHVV
&RXQWU\OHYHOZHOOGHYHORSHGVWDNHKROGHUHQJDJHPHQWSODQVH[LVWDWFRXQWU\OHYHODQGLQDIHZFDVHVDWSODQWOHYHODVZHOO+RZHYHUWKHVH
PDLQO\WDUJHWVHOHFWHGVWDNHKROGHUJURXSVWKRVHWKDWDUHWKHPRVWSRZHUIXODQGRURIKLJKHVWLQWHUHVWWRWKH&RPSDQ\+HUHDPRUH
KROLVWLFDSSURDFKLVUHFRPPHQGHGUHJXODUVWDNHKROGHUIRUXPVVKRXOGEHRUJDQLVHGLQZKLFKDOOVWDNHKROGHUVKDYHWKHFKDQFHWRPHHW
GLVFXVVNH\VXVWDLQDELOLW\FKDOOHQJHVDQGORRNIRUVROXWLRQVLQDFROODERUDWLYHZD\
$YDULHW\RIH[FHOOHQWFRPPXQLW\SURMHFWVKDYHEHHQLPSOHPHQWHGDWERWKFRXQWU\DQGSODQWOHYHO7KH\DUHKLJKO\UHVSRQVLYHWR
VWDNHKROGHUQHHGVDQGDUHLQDOLJQPHQWZLWKWKH&RPSDQ\VFRPPXQLW\GHYHORSPHQWIRFXVDUHDV([DPSOHVLQFOXGH6RUWZLWKXV5XVVLD
WKH9DOVHU)XQG6ZLW]HUODQGYLVLWRUFHQWUHV$UPHQLDDQG6ZLW]HUODQGDQGWKH(1*,1(3URJUDPIRUWKHHPSRZHUPHQWRI\RXQJJLUOV
1LJHULD
([FHOOHQWH[DPSOHVRI&655HSRUWLQJWKH&]HFK5HSXEOLFDQG6ORYDNLD6ZLW]HUODQG3RODQGDQG6RFLRHFRQRPLF,PSDFW$VVHVVPHQWV
*UHHFH6ZLW]HUODQGZHUHIRXQGLQWKHFRXUVHRIWKHDXGLW7KH*URXSVKRXOGKLJKOLJKWWKHVHH[DPSOHVRIJRRGSUDFWLFHDQGHQFRXUDJH
RUHYHQLQFHQWLYLVHVXFKHRUWVLQDOORSHUDWLRQV

$GGLWLRQDOFRQFOXVLRQVDQGUHFRPPHQGDWLRQV
5HSRUWLQJWKHLQWHUQDOUHSRUWLQJSURFHVVIRUVRPHUHOHYDQWVXVWDLQDELOLW\WRSLFVQHHGVWREHVWUHQJWKHQHGHVSHFLDOO\LQWKHIROORZLQJFDVHV
7UDLQLQJKRXUVWKH+5:KLWH%RRNVKRXOGEHUROOHGRXWPRUHHHFWLYHO\YLDWUDLQLQJRURWKHUDZDUHQHVVUDLVLQJDFWLYLWLHV
&RPPXQLW\LQYHVWPHQWFRPSOHWHWUDQVSDUHQF\LQWHUPVRINH\SHUIRUPDQFHLQGLFDWRUVSDUWLFLSDQWQXPEHUVYROXQWHHUQXPEHUVSODQW
YLVLWVFDVKRULQNLQGFRQWULEXWLRQVQHHGVWREHHQVXUHG
6XVWDLQDEOHVRXUFLQJ
)XOOLPSOHPHQWDWLRQRIWKH(QYLURQPHQWDO6RFLDODQG*RYHUQDQFH3UHDVVHVVPHQW7RRODNH\WRROIRUVFUHHQLQJVXSSOLHUVODXQFKHGLQ
0D\LVUHTXLUHGFRPELQHGZLWKIXUWKHUWUDLQLQJRQSURSHUXVHRIWKHWRROLQSURFXUHPHQWSURFHVVHV
&RPSOLDQFHZLWKWKH6XSSOLHU*XLGLQJ3ULQFLSOHVQHHGVWREHHQVXUHGDFURVVWKHVXSSOLHUXQLYHUVH
&'6%&OLPDWH&KDQJH5HSRUWLQJ)UDPHZRUNUHSRUWLQJSURFHVVHVVKRXOGEHVWUHQJWKHQHGHVSHFLDOO\ZLWKUHJDUGWRRSSRUWXQLWLHVUHODWHG
WRFOLPDWHFKDQJHDQGWKHIXWXUHRXWORRN
3DFNDJLQJUHF\FOLQJDQGUHFRYHU\WKHQHZ&RPPLWPHQWVDUHDQLPSRUWDQWGHYHORSPHQWLQWKLVDUHD+RZHYHUGHQLQJEDVHOLQHVIRU
HDFKPDUNHWDQGIRUHDFKFDWHJRU\RISDFNDJLQJPDWHULDOLVQHFHVVDU\LQRUGHUWRHQVXUHWKHFRPPLWPHQWVDUHIXOOOHGHFLHQWO\DFURVV
WKH*URXS
'LYHUVLW\DQGLQFOXVLRQ
+LJKOHYHOFRPPLWPHQWVDQGTXDQWLWDWLYHRUTXDOLWDWLYHJRDOVVKRXOGEHGHQHG
,QRUGHUWRDYRLGLQFRPSOHWHRUGLVWRUWHGSHUFHSWLRQVWKHDYDLODELOLW\RI&RPSDQ\SROLFLHVWUDLQLQJDQGVXUYH\VLQDOOORFDOODQJXDJHVQHHGV
WREHHQVXUHG
$QWLFRUUXSWLRQDQGEULEHU\ZHUHFRPPHQGDQDO\VLVRIWKHYDULRXVIRUPVFRUUXSWLRQDQGEULEHU\ULVNVFDQWDNHLQGLHUHQWORFDWLRQV
GHSHQGLQJRQWKHFXOWXUDOHFRQRPLFDQGKLVWRULFDOFRQWH[W$FRUUXSWLRQULVNKHDWPDSVKRXOGKHOSLQGHYHORSLQJWDUJHWHGDSSURDFKHVLQ
HDFKFRXQWU\

9LHQQD0DUFK
denkstatt GmbH
Consultancy for Sustainable Development

Willibald Kaltenbrunner
Lead Auditor
Managing Partner, denkstatt

COC016_.indb 208 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 

6KDUHKROGHULQIRUPDWLRQ

Strategic Report
:HWDNHJUHDWSULGHLQEHLQJUHJDUGHGDVDWUDQVSDUHQWDQG 6KDUHSULFHSHUIRUPDQFH
DFFHVVLEOH&RPSDQ\LQDOORXUFRPPXQLFDWLRQVZLWKWKHLQYHVWPHQW /6(&&+ 2016 2015 2014
FRPPXQLWLHVDURXQGWKHZRUOG ,QeSHUVKDUH
:HHQJDJHZLWKNH\QDQFLDODXGLHQFHVLQFOXGLQJLQVWLWXWLRQDO Close 17.70  
LQYHVWRUVVHOOVLGHDQDO\VWVDQGQDQFLDOMRXUQDOLVWVDVZHOODVRXU +LJK 18.40  
&RPSDQ\VVKDUHKROGHUV7KH,QYHVWRU5HODWLRQVGHSDUWPHQW /RZ 12.65  
PDQDJHVWKHLQWHUDFWLRQZLWKWKHVHDXGLHQFHVE\DWWHQGLQJDGKRF 0DUNHWFDSLWDOLVDWLRQePLOOLRQ 6,426  

Corporate Governance
PHHWLQJVDQGLQYHVWRUFRQIHUHQFHVWKURXJKRXWWKH\HDULQDGGLWLRQ
WRWKHUHJXODUPHHWLQJVDQGSUHVHQWDWLRQVKHOGDWWKHWLPHRIWKH $7+(;((( 2016 2015 2014
UHVXOWVDQQRXQFHPHQWV
,QSHUVKDUH
$QDO\VLVE\ *HRJUDSKLF Close 20.69  
VKDUHKROGHU FRQFHQWUDWLRQ +LJK 20.99  
/RZ 16.00  
Market capitalisation ( million) 7,512  
6RXUFH%ORRPEHUJ

6KDUHFDSLWDO
,QWKHVKDUHFDSLWDORI&RFD&ROD+%&LQFUHDVHGE\WKHLVVXH

Financial Statements
RIQHZRUGLQDU\VKDUHVIROORZLQJWKHH[HUFLVHRIVWRFN
RSWLRQVSXUVXDQWWRWKH*URXSVHPSOR\HHVWRFNRSWLRQSODQ7RWDO
SURFHHGVIURPWKHLVVXDQFHRIWKHVKDUHVXQGHUWKHVWRFNRSWLRQ
1 - 10,000: 1% Continental Europe: 36%
SODQDPRXQWHGWRPLOOLRQ
10,001 - 100,000: 3% UK: 31% )ROORZLQJWKHDERYHFKDQJHVDQGLQFOXGLQJRUGLQDU\
100,001-1,000,00: 16% United States: 25%
1,000,001 - over: 79% Rest of the world: 8%
VKDUHVKHOGDVWUHDVXU\VKDUHVRQ'HFHPEHUWKHVKDUH
Treasury shares: 2% Retail investors: 1% FDSLWDORIWKH*URXSDPRXQWHGWRPLOOLRQDQGFRPSULVHG
VKDUHVZLWKDQRPLQDOYDOXHRI&+)HDFK
 3HUFHQWDJHVKDYHEHHQFDOFXODWHGH[FOXGLQJPDMRUVKDUHKROGHUV.DU7HVV
+ROGLQJDQG7KH&RFD&ROD&RPSDQ\ 0DMRUVKDUHKROGHUV
7KHSULQFLSDOVKDUHKROGHUVRIWKH*URXSDUH.DU7HVV+ROGLQJD

Swiss Statutory Reporting

/X[HPERXUJFRPSDQ\ZKLFKKROGVDSSUR[LPDWHO\DQG7KH
/LVWLQJV &RFD&ROD&RPSDQ\ZKLFKLQGLUHFWO\KROGVDSSUR[LPDWHO\RI
&RFD&ROD+%&$*/6(&&+ZDVDGPLWWHGWRWKHSUHPLXPOLVWLQJ WKH*URXSVLVVXHGVKDUHFDSLWDO
VHJPHQWRIWKH2FLDO/LVWRIWKH8./LVWLQJ$XWKRULW\DQGWRWUDGLQJ
RQWKH/RQGRQ6WRFN([FKDQJHVPDLQPDUNHWIRUOLVWHGVHFXULWLHVRQ 'LYLGHQGV
$SULO:LWKHHFWIURP$SULO&RFD&ROD+%&$*V )RUWKH%RDUGRI'LUHFWRUVKDVSURSRVHGDGLYLGHQGSHU
VKDUHVDUHDOVRDGPLWWHGRQWKH$WKHQV([FKDQJH$7+(;(((
&RFD&ROD+%&$*KDVEHHQLQFOXGHGDVDFRQVWLWXHQWRIWKH)76(
DQG)76($OO6KDUHLQGLFHVIURP6HSWHPEHU
/RQGRQ6WRFN([FKDQJH
7LFNHUV\PERO&&+
VKDUHLQOLQHZLWKWKH*URXSVSURJUHVVLYHGLYLGHQGSROLF\7KLV
FRPSDUHVWRDGLYLGHQGSD\PHQWRISHUVKDUHLQ
)RUPRUHLQIRUPDWLRQRQRXUGLYLGHQGSROLF\DQGGLYLGHQGKLVWRU\
SOHDVHYLVLWRXUZHEVLWHDWZZZFRFDFRODKHOOHQLFFRP
)LQDQFLDOFDOHQGDU
Supplementary Information

,6,1&+
6('2/%% 0D\ )LUVWTXDUWHUWUDGLQJXSGDWH
5HXWHUV&&+/ -XQH Annual General Meeting
%ORRPEHUJ&&+/1 $XJXVW +DOI\HDUQDQFLDOUHVXOWV
$WKHQV([FKDQJH 1RYHPEHU 7KLUGTXDUWHUWUDGLQJXSGDWH
7LFNHUV\PERO(((
,6,1&+ &RUSRUDWHZHEVLWH
5HXWHUV(((U$7 ZZZFRFDFRODKHOOHQLFFRP
%ORRPEHUJ(((*$
6KDUHKROGHUDQGDQDO\VWLQIRUPDWLRQ
&UHGLWUDWLQJ
6WDQGDUG 3RRUV/7%%%67$SRVLWLYHRXWORRN 6KDUHKROGHUVDQGQDQFLDODQDO\VWVFDQREWDLQIXUWKHULQIRUPDWLRQ
0RRG\V/7%DD673VWDEOHRXWORRN E\FRQWDFWLQJ
,QYHVWRU5HODWLRQV
7HO
(PDLOLQYHVWRUUHODWLRQV#FFKHOOHQLFFRP
,5ZHEVLWHZZZFRFDFRODKHOOHQLFFRPLQYHVWRUUHODWLRQV

COC016_.indb 209 3/16/17 2:36 PM

 Coca-Cola HBC
210 2016 Integrated Annual Report

*ORVVDU\

Basis points (bps) Comparable adjusted EBITDA Future consumption

One hundredth of one percentage point :HGHQHDGMXVWHG(%,7'$DVRSHUDWLQJ $GLVWULEXWLRQFKDQQHOZKHUHFRQVXPHUV
XVHGFKLH\LQH[SUHVVLQJGLHUHQFHV SURWEHIRUHGHGXFWLRQVIRUGHSUHFLDWLRQ EX\PXOWLSDFNVDQGODUJHUSDFNDJHVIURP
DQGLPSDLUPHQWRISURSHUW\SODQWDQG VXSHUPDUNHWVDQGGLVFRXQWHUVZKLFKDUH
Brand Coca-Cola products HTXLSPHQWLQFOXGHGERWKLQFRVWRI QRWFRQVXPHGRQWKHVSRW
Includes Coca-Cola, Coca-Cola Zero and
Coca-Cola Light brands
BSO
Business Services Organisation
BSS
%XVLQHVV6ROXWLRQVDQG6\VWHPV
JRRGVbVROGDQGLQRSHUDWLQJH[SHQVHV
DPRUWLVDWLRQDQGLPSDLUPHQWRIDQG FYROM
DGMXVWPHQWVWRLQWDQJLEOHDVVHWV )RUPHU<XJRVODY5HSXEOLFRI0DFHGRQLD
VWRFNRSWLRQFRPSHQVDWLRQDQGRWKHU
QRQFDVKbLWHPVLIDQ\ GDP
*URVVGRPHVWLFSURGXFW
&RPSDUDEOHQHWSURW
5HIHUVWRQHWSURWDIWHUWD[DWWULEXWDEOH GfK
WRbRZQHUVRIWKHSDUHQW :HZRUNZLWKWKHFRPSDQ\*URZWKIRU
CAGR .QRZOHGJH*I.WRWUDFNRXUFXVWRPHU
&RPSRXQGDYHUDJHJURZWKUDWH
&RPSDUDEOHRSHUDWLQJSURW VDWLVIDFWLRQOHYHO
(EBIT)
Capital expenditure; CapEx 2SHUDWLQJSURW(%,7UHIHUVWRSURW GRI
*URVV&DS([LVGHQHGDVSD\PHQWVIRU EHIRUHWD[H[FOXGLQJQDQFHLQFRPH Global Reporting Initiative, a global standard
SXUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW
1HW&DS([LVGHQHGDVSD\PHQWVIRU
SXUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW
OHVVUHFHLSWVIURPGLVSRVDOVRISURSHUW\
SODQWDQGHTXLSPHQWSOXVSULQFLSDO
UHSD\PHQWRIQDQFHOHDVHREOLJDWLRQV
Carbon emissions
(PLVVLRQVRI&22 and other greenhouse
JDVHVIURPIXHOFRPEXVWLRQDQGHOHFWULFLW\
XVHLQ&RFD&ROD+%&VRZQRSHUDWLRQV
VFRSHDQGPRVWO\LQERWWOLQJDQG
FRVWVbDQGVKDUHRIUHVXOWVRIHTXLW\ IRUVXVWDLQDELOLW\UHSRUWLQJ
PHWKRGLQYHVWPHQWV
HoReCa
Consumer Hotel Restaurant Cafe
3HUVRQZKRGULQNV&RFD&ROD+%&bSURGXFWV
IFRS
Customer International Financial Reporting
Retail outlet, restaurant or other Standards of the International Accounting
operation that sells or serves 6WDQGDUGVb%RDUG
&RFD&ROD+%&SURGXFWVGLUHFWO\WR
FRQVXPHUV IIRC
The International Integrated Reporting
GLVWULEXWLRQLQWRQQHV
Carbon footprint
*OREDOHPLVVLRQVRI&22 and other
JUHHQKRXVHJDVHVIURP&RFD&ROD+%&V
ZLGHUYDOXHFKDLQUDZPDWHULDOVSURGXFW
DIFOTAI Council, a global coalition of regulators,
'HOLYHULQIXOORQWLPHDQGDFFXUDWHO\LQYRLFH LQYHVWRUVFRPSDQLHVVWDQGDUGVHWWHUV
WKHbDFFRXQWLQJSURIHVVLRQDQG1*2V
DME
'LUHFWPDUNHWLQJH[SHQVHV Immediate consumption
$GLVWULEXWLRQFKDQQHOZKHUHFRQVXPHUVEX\
FRROLQJHWF EDS chilled beverages in single-serve packages
(YHU\GHDOHUVXUYH\ DQGIRXQWDLQSURGXFWVIRULPPHGLDWH
CHP FRQVXPSWLRQDZD\IURPKRPH
&RPELQHGKHDWDQGSRZHUSODQWV Energy use ratio
7KH.3,XVHGE\&RFD&ROD+%&WR Inventory days
Coca-Cola HBC PHDVXUHHQHUJ\FRQVXPSWLRQLQWKH :HGHQHLQYHQWRU\GD\VDVWKHDYHUDJH
&RFD&ROD+%&$*DQGDVWKHFRQWH[W ERWWOLQJSODQWVH[SUHVVHGLQPHJDMRXOHV QXPEHURIGD\VDQLWHPUHPDLQVLQLQYHQWRU\
PD\UHTXLUHLWVVXEVLGLDULHVDQGMRLQW RIbHQHUJ\FRQVXPHGSHUOLWUHRISURGXFHG EHIRUHEHLQJVROGXVLQJWKHIROORZLQJ
YHQWXUHVDOVRWKH*URXSWKH&RPSDQ\ EHYHUDJH0-OSE IRUPXODDYHUDJHLQYHQWRU\FRVWRI
JRRGVVROG[
Coca-Cola System FMCG
7KH&RFD&ROD&RPSDQ\DQGLWV )DVWPRYLQJFRQVXPHUJRRGV Ireland
ERWWOLQJbSDUWQHUV The Republic of Ireland and Northern Ireland
Fragmented trade
Cold drink equipment .LRVNVTXLFNVHUYLFHUHVWDXUDQWV465DQG Italy
$JHQHULFWHUPHQFRPSDVVLQJSRLQWRIVDOH KRWHOVUHVWDXUDQWVDQGFDIV+R5H&D 7HUULWRU\LQ,WDO\VHUYHGE\&RFD&ROD+%&
HTXLSPHQWVXFKDVFRROHUVUHIULJHUDWRUV H[FOXGHV6LFLO\
YHQGLQJPDFKLQHVDQGSRVWPL[PDFKLQHV

COC016_.indb 210 3/16/17 2:36 PM

 Coca-Cola HBC
2016 Integrated Annual Report 211

Strategic Report
Joint value creation (JVC) SAP Volume share
$QDGYDQFHGSURJUDPPHDQGSURFHVV $SRZHUIXOVRIWZDUHSODWIRUPWKDWHQDEOHV Share of total unit cases sold
WRbFROODERUDWHZLWKFXVWRPHUVLQRUGHU XVWRVWDQGDUGLVHNH\EXVLQHVVSURFHVVHV
WRbFUHDWHVKDUHGYDOXH DQGV\VWHPV Value share
Share of total revenue
Litre of produced beverage (lpb) SDG
8QLWRIUHIHUHQFHWRVKRZHQYLURQPHQWDO 6XVWDLQDEOHGHYHORSPHQWJRDOV Waste ratio

SHUIRUPDQFHUHODWLYHWRSURGXFWLRQYROXPH
Market
When used in reference to geographic areas,
Corporate Governance
7KH.3,XVHGE\&RFD&ROD+%&WR
Serving PHDVXUHZDVWHJHQHUDWLRQLQWKHERWWOLQJ
PORUR]RIEHYHUDJHHTXLYDOHQWWR SODQWVH[SUHVVHGLQJUDPPHVRIZDVWH
RIDXQLWFDVH generated per litre of produced beverage
DFRXQWU\LQZKLFK&RFD&ROD+%&GRHV
business
Modern trade
5HIHUVWRDVKLIWLQEX\LQJKDELWVDV
FRQVXPHUVLQFUHDVHIUHTXHQF\RIYLVLWVWR
VWRUHVEXWKDYHVPDOOHUEDVNHWVL]HVZKLFK
FDQFDXVHKLJKHUYROXPHEXWORZHUUHYHQXH
NARTD
1RQDOFRKROLFUHDG\WRGULQN
NGOs
1RQJRYHUQPHQWDORUJDQLVDWLRQV
OBPPC
Occasion, Brand, Price, Package, Channel
Shared services
&HQWUHWRVWDQGDUGLVHDQGVLPSOLI\NH\
QDQFHDQGKXPDQUHVRXUFHVSURFHVVHV
Sparkling beverages
Non-alcoholic carbonated beverages
FRQWDLQLQJDYRXULQJVDQGVZHHWHQHUV
H[FOXGLQJDPRQJRWKHUVZDWHUVDQG
DYRXUHGZDWHUVMXLFHVDQGMXLFHGULQNV
VSRUWVDQGHQHUJ\GULQNVWHDVDQGFRHH
SKU
Stock Keeping Unit
Still and water beverages
1RQDOFRKROLFEHYHUDJHVZLWKRXW
JOSE
Waste recycling
7KH.3,XVHGE\&RFD&ROD+%&WR
PHDVXUHWKHSHUFHQWDJHRISURGXFWLRQ
ZDVWHDWERWWOLQJSODQWVWKDWLVUHF\FOHGRU
recovered
Financial Statements
Water footprint
$PHDVXUHRIWKHLPSDFWRIZDWHUXVHLQ
RSHUDWLRQVRUEH\RQGDVGHQHGE\WKH
:DWHU)RRWSULQW1HWZRUNPHWKRGRORJ\
Water use ratio
7KH.3,XVHGE\&RFD&ROD+%&WR
PHDVXUHZDWHUXVHLQWKHERWWOLQJSODQWV
H[SUHVVHGLQOLWUHVRIZDWHUXVHGSHUOLWUHRI
FDUERQDWLRQLQFOXGLQJEXWQRWOLPLWHGWR SURGXFHGEHYHUDJHOOSE
Organised trade ZDWHUVDQGDYRXUHGZDWHUVMXLFHVDQG

Swiss Statutory Reporting

/DUJHUHWDLOHUVHJVXSHUPDUNHWV MXLFHbGULQNVVSRUWVDQGHQHUJ\GULQNV Working capital
GLVFRXQWHUVHWF WHDVbDQGFRHH 2SHUDWLQJFXUUHQWDVVHWVPLQXVRSHUDWLQJ
FXUUHQWOLDELOLWLHVH[FOXGLQJQDQFLQJDQG
PET Territory LQYHVWPHQWDFWLYLWLHV
3RO\HWK\OHQHWHUHSWKDODWHDIRUPRI 7KHFRXQWULHVZKHUH
SRO\HVWHUXVHGLQWKHPDQXIDFWXULQJRI Coca-Cola HBC operates
beverage bottles
UNESDA
Ready-to-drink (RTD)
'ULQNVWKDWDUHSUHPL[HGDQGSDFNDJHG
UHDG\WREHFRQVXPHGLPPHGLDWHO\ZLWKQR
further preparation
Right Execution Daily (RED)
0DMRU*URXSZLGHSURJUDPPHWRHQVXUH
LQRXWOHWH[FHOOHQFH
Receivable days
7KHDYHUDJHQXPEHURIGD\VLWWDNHVWR
FROOHFWWKHUHFHLYDEOHVXVLQJWKHIROORZLQJ
IRUPXODDYHUDJHDFFRXQWVUHFHLYDEOHV[QHW
VDOHVUHYHQXH[
COC016_.indb 211
8QLRQRI(8(XURSHDQ8QLRQ6RIW
'ULQNVb$VVRFLDWLRQV
Unit case (u.c.)
Supplementary Information
$SSUR[LPDWHO\OLWUHVRUVHUYLQJV
DbW\SLFDOYROXPHPHDVXUHPHQWXQLW
UN Global Compact (UNGC)
7KHZRUOGVODUJHVWFRUSRUDWHFLWL]HQVKLS
LQLWLDWLYHZKLFKSURYLGHVDIUDPHZRUNIRU
EXVLQHVVHVWRDOLJQVWUDWHJLHVZLWKLWV
SULQFLSOHVSURPRWLQJODERXUULJKWVKXPDQ
ULJKWVHQYLURQPHQWDOSURWHFWLRQDQG
anti-corruption
Volume
$PRXQWRISK\VLFDOSURGXFWSURGXFHGDQG
VROGPHDVXUHGLQXQLWFDVHV
3/16/17 2:36 PM
 Coca-Cola HBC
212 2016 Integrated Annual Report

6SHFLDOQRWHUHJDUGLQJIRUZDUGORRNLQJbVWDWHPHQWV
7KLVGRFXPHQWFRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVWKDWLQYROYHULVNVDQGXQFHUWDLQWLHV7KHVHVWDWHPHQWVPD\JHQHUDOO\EXWQRWDOZD\V
EHLGHQWLHGE\WKHXVHRIZRUGVVXFKDVEHOLHYHRXWORRNJXLGDQFHLQWHQGH[SHFWDQWLFLSDWHSODQWDUJHWVHHNVHVWLPDWHV
SRWHQWLDODQGVLPLODUH[SUHVVLRQVWRLGHQWLI\IRUZDUGORRNLQJVWDWHPHQWV$OOVWDWHPHQWVRWKHUWKDQVWDWHPHQWVRIKLVWRULFDOIDFWVLQFOXGLQJ
DPRQJRWKHUVVWDWHPHQWVUHJDUGLQJWKHIXWXUHQDQFLDOSRVLWLRQDQGUHVXOWV&RFD&ROD+%&VRXWORRNIRUDQGIXWXUH\HDUVEXVLQHVV
VWUDWHJ\DQGWKHHHFWVRIWKHJOREDOHFRQRPLFVORZGRZQWKHLPSDFWRIWKHVRYHUHLJQGHEWFULVLVFXUUHQF\YRODWLOLW\&RFD&ROD+%&V
UHFHQWDFTXLVLWLRQVDQGUHVWUXFWXULQJLQLWLDWLYHVRQ&RFD&ROD+%&VEXVLQHVVDQGQDQFLDOFRQGLWLRQ&RFD&ROD+%&VIXWXUHGHDOLQJVZLWK
7KH&RFD&ROD&RPSDQ\EXGJHWVSURMHFWHGOHYHOVRIFRQVXPSWLRQDQGSURGXFWLRQSURMHFWHGUDZPDWHULDODQGRWKHUFRVWVHVWLPDWHVRI
FDSLWDOH[SHQGLWXUHIUHHFDVKRZHHFWLYHWD[UDWHVDQGbSODQVDQGREMHFWLYHVRIPDQDJHPHQWIRUIXWXUHRSHUDWLRQVDUHIRUZDUGORRNLQJ
VWDWHPHQWV<RXVKRXOGQRWSODFHXQGXHUHOLDQFHRQVXFKIRUZDUGORRNLQJVWDWHPHQWV%\WKHLUQDWXUHIRUZDUGORRNLQJVWDWHPHQWV
LQYROYHULVNDQGXQFHUWDLQW\EHFDXVHWKH\UHHFWWKH&RFD&ROD+%&VFXUUHQWH[SHFWDWLRQVDQGDVVXPSWLRQVDVWRIXWXUHHYHQWVDQG
FLUFXPVWDQFHVWKDWPD\QRWSURYHDFFXUDWH)RUZDUGORRNLQJVWDWHPHQWVVSHDNRQO\DVRIWKHGDWHWKH\DUHPDGH&RFD&ROD+%&VDFWXDO
UHVXOWVbDQGbHYHQWVFRXOGGLHUPDWHULDOO\IURPWKRVHDQWLFLSDWHGLQWKHIRUZDUGORRNLQJVWDWHPHQWVIRUPDQ\UHDVRQVLQFOXGLQJWKHULVNV
GHVFULEHGXQGHUWKHVHFWLRQHQWLWOHG5LVNPDQDJHPHQWDQGRXUSULQFLSDOULVNV2XUSULQFLSDOULVNV$OWKRXJK&RFD&ROD+%&EHOLHYHV
WKDWDVRIWKHGDWHRIWKLVGRFXPHQWWKHH[SHFWDWLRQVUHHFWHGLQWKHIRUZDUGORRNLQJVWDWHPHQWVDUHUHDVRQDEOH&RFD&ROD+%&FDQQRW
DVVXUHWKDW&RFD&ROD+%&VIXWXUHUHVXOWVOHYHORIDFWLYLW\SHUIRUPDQFHRUDFKLHYHPHQWVZLOOPHHWWKHVHH[SHFWDWLRQV0RUHRYHUQHLWKHU
&RFD&ROD+%&QRULWV'LUHFWRUVHPSOR\HHVDGYLVHUVQRUDQ\RWKHUSHUVRQDVVXPHVUHVSRQVLELOLW\IRUWKHDFFXUDF\DQGFRPSOHWHQHVVRI
DQ\IRUZDUGORRNLQJVWDWHPHQWV$IWHUWKHGDWHRIWKLV,QWHJUDWHG$QQXDO5HSRUWXQOHVV&RFD&ROD+%&LVUHTXLUHGE\ODZRUWKHUXOHVRIWKH
8.)LQDQFLDO&RQGXFW$XWKRULW\WRXSGDWHWKHVHIRUZDUGORRNLQJVWDWHPHQWV&RFD&ROD+%&PDNHVQRFRPPLWPHQWWRXSGDWHDQ\RIWKHVH
IRUZDUGORRNLQJVWDWHPHQWVWRFRQIRUPWKHPHLWKHUWRDFWXDOUHVXOWVRUWRFKDQJHVLQ&RFD&ROD+%&VH[SHFWDWLRQV

About our report

7KH,QWHJUDWHG$QQXDO5HSRUWWKH$QQXDO5HSRUWFRQVROLGDWHV&RFD&ROD+%&$*VDOVRUHIHUUHGWRDV&RFD&ROD+%&RUWKH
&RPSDQ\RUWKH*URXS8.DQG6ZLVVGLVFORVXUHUHTXLUHPHQWVZKLOHbPHHWLQJWKHGLVFORVXUHUHTXLUHPHQWVIRULWVVHFRQGDU\OLVWLQJRQWKH
$WKHQV([FKDQJH,QDGGLWLRQWKH$QQXDO5HSRUWDLPVWRGHOLYHUDJDLQVWWKHH[SHFWDWLRQVRIWKH&RPSDQ\VVWDNHKROGHUVDQGVXVWDLQDELOLW\
UHSRUWLQJVWDQGDUGVSURYLGLQJDWUDQVSDUHQWRYHUYLHZRIWKH*URXSVSHUIRUPDQFHDQGbSURJUHVVLQVXVWDLQDEOHGHYHORSPHQWIRU
2XUVWUDWHJLFIUDPHZRUNVHUYHVDVWKHQDUUDWLYHVWUXFWXUHRIWKH$QQXDO5HSRUWGHPRQVWUDWLQJWKHYDOXHWKLVEXVLQHVVVWUDWHJ\LVFUHDWLQJ
7KHIRXUSLOODUVRIRXUVWUDWHJ\&RPPXQLW\WUXVW&RQVXPHUUHOHYDQFH&XVWRPHUSUHIHUHQFHDQG&RVWOHDGHUVKLSFRPELQHGZLWKRXU
3HRSOHLQLWLDWLYHVIUDPHWKHGLVFXVVLRQRIRXUDFWLYLWLHVGXULQJ
7KH$QQXDO5HSRUWLVIRUWKH\HDUHQGHG'HFHPEHUDQGLWVIRFXVLVbRQWKHSULPDU\FRUHEXVLQHVVRIQRQDOFRKROLFUHDG\WR
GULQNEHYHUDJHVDFURVVWKHFRXQWULHVLQZKLFKZHRSHUDWH2XUZHEVLWHDQGDQ\RWKHUZHEVLWHUHIHUUHGWRLQWKH$QQXDO5HSRUWDUHQRW
LQFRUSRUDWHGE\UHIHUHQFHDQGGRQRWIRUPSDUWRIWKH$QQXDO5HSRUW
7KHFRQVROLGDWHGQDQFLDOVWDWHPHQWVRIWKH*URXSLQFOXGHGRQSDJHVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWK,QWHUQDWLRQDO
)LQDQFLDO5HSRUWLQJ6WDQGDUGV,)56DVLVVXHGE\WKH,QWHUQDWLRQDO$FFRXQWLQJ6WDQGDUGV%RDUG,$6%&RFD&ROD+%&$*VVWDWXWRU\
QDQFLDOVWDWHPHQWVLQFOXGHGRQSDJHVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKWKH6ZLVV&RGHRI2EOLJDWLRQV8QOHVVRWKHUZLVH
LQGLFDWHGRUUHTXLUHGE\FRQWH[WDOOQDQFLDOLQIRUPDWLRQFRQWDLQHGLQWKLVGRFXPHQWKDVEHHQSUHSDUHGLQDFFRUGDQFHZLWK,)56)RU6ZLVV
ODZSXUSRVHVWKHDQQXDOPDQDJHPHQWUHSRUWFRQVLVWVRIWKHVHFWLRQV6WUDWHJLF5HSRUW&RUSRUDWH*RYHUQDQFHZLWKRXWWKHVXEVHFWLRQ
'LUHFWRUV5HPXQHUDWLRQ5HSRUW6XSSOHPHQWDU\,QIRUPDWLRQDQG*ORVVDU\
7KH*URXSXVHVFHUWDLQ$OWHUQDWLYH3HUIRUPDQFH0HDVXUHV$30VWKDWSURYLGHDGGLWLRQDOLQVLJKWVDQGXQGHUVWDQGLQJWRWKH*URXSV
XQGHUO\LQJRSHUDWLQJDQGQDQFLDOSHUIRUPDQFHQDQFLDOFRQGLWLRQDQGFDVKRZ$IXOOOLVWRIWKHVH$30VWKHLUGHQLWLRQDQGUHFRQFLOLDWLRQWR
WKHUHVSHFWLYH,)56PHDVXUHVFDQEHIRXQGLQSDJHV
7KHVXVWDLQDELOLW\DVSHFWVRIWKLV$QQXDO5HSRUWFRPSO\ZLWKWKH$$$6$VVXUDQFH6WDQGDUGWKH*OREDO5HSRUWLQJ,QLWLDWLYHLQDFFRUGDQFH
ZLWK*5,*&RPSUHKHQVLYHVWDQGDUGVDQGWKHDGYDQFHGOHYHOUHTXLUHPHQWVIRUFRPPXQLFDWLRQRQSURJUHVVDJDLQVWWKH3ULQFLSOHV
RIWKH8QLWHG1DWLRQV*OREDO&RPSDFW,QDGGLWLRQLWLVDOLJQHGZLWKWKHSULQFLSOHVDQGHOHPHQWVRIbWKH,QWHUQDWLRQDO,QWHJUDWHG5HSRUWLQJ
&RXQFLOV,,5&IUDPHZRUNDQGWKHb&OLPDWH&KDQJH5HSRUWLQJ)UDPHZRUN&'6%&DUERQHPLVVLRQVDUHFDOFXODWHGE\XVLQJWKH*+*
3URWRFRO&RUSRUDWH$FFRXQWLQJDQG5HSRUWLQJ6WDQGDUGPHWKRGRORJ\DQGKDYHEHHQYHULHGE\DQLQGHSHQGHQWRUJDQLVDWLRQ$VZLWKWKH
UHVWRIWKHLQIRUPDWLRQSURYLGHGWKHVXVWDLQDELOLW\DVSHFWVRIWKLV$QQXDO5HSRUWDUHIRUWKHIXOO\HDUHQGHG'HFHPEHUDQGWKHUHODWHG
LQIRUPDWLRQSUHVHQWHGLVEDVHGRQDQDQQXDOUHSRUWLQJF\FOH
:HUHPDLQFRPPLWWHGWRVWURQJFRUSRUDWHJRYHUQDQFHDQGOHDGHUVKLSDVbZHOODVWUDQVSDUHQF\LQRXUGLVFORVXUHV:HZLOOFRQWLQXHWRUHYLHZRXU
UHSRUWLQJDSSURDFKDQGURXWLQHVWRHQVXUHWKH\PHHWEHVWSUDFWLFHUHSRUWLQJVWDQGDUGVWKHH[SHFWDWLRQVRIRXUVWDNHKROGHUVDQGPDLQWDLQ
WKHYLVLELOLW\RQKRZZHFUHDWHVXVWDLQDEOHYDOXHIRUWKHFRPPXQLWLHVZHVHUYH

COC016_.indb 212 3/16/17 2:36 PM

Visit us
www.cocacolahellenic.com
Guided by our users thoughts and feedback, we have completely refreshed our
website. The new Group site features all of our latest news and financial data,
stories from around our business and communities, a vibrant new design and an
improved experience for audiences.
Write to us
We have dedicated email addresses which you can use to communicate with us.
investor.relations@cchellenic.com
sustainability@cchellenic.com
This report is printed utilising vegetable based inks on
Magno satin & Arco print, both of which are sourced from well
managed forests independently certified according to the
rules of the Forest Stewardship Council (FSC). This report
was printed by an FSC and carbon neutral printing company.
Both materials are manufactured at a mill that is certified to
the ISO14001 and EMAS environmental standards.
Designed and produced by Black Sun Plc
Printed by Pureprint

CocaCola HBC AG
Turmstrasse 26, CH-6300 Zug, Switzerland
www.cocacolahellenic.com
investor.relations@cchellenic.com
sustainability@cchellenic.com