Coca-Cola

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Coca Cola
ANALYSIS for NYSE : KO APRIL 25, 2013

COCA-COLA

$

39.10
Trefis Estimate

$

42.35
Market Price

$177.1 B MKT CAP

$188.4 B MKT CAP

Coca-Cola's International Revenue per Case 4 Coca-Cola's International CSD Market Share 5 Coca-Cola's US Revenue per Case 6 Coca-Cola's US CSD Market Share 8 Coca-Cola Gross Profit Margin 9 POWERADE & OTHER BRANDS

See the Full Analysis for Coca Cola on Trefis
— CORPORATE SNAPSHOT —

The Coca-Cola Company is the world’s largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The company sells these syrups and concentrates to bottlers who, in turn sell the finished product. Some of the most famous and valuable brands include Coke, Diet Coke, Sprite, Fanta, Minute Maid, Powerade, Dasani etc. In 2010, Coca-Cola Co completed the acquisition of North American operations of Coca-Cola Enterprises. The company's market share in the Liquid Refreshment Beverage (LRB) market was 34.0% in the U.S. during the same period. — VALUATION HIGHLIGHTS —

Powerade & Other Brands Global Revenue per Case 11 Powerade & Other Brands' Global Market Share 12 Global Fruit Juices & Energy Drinks Market Size 13 Fruit Juices & Soft Drinks Gross Profit Margin 14 DIET COKE

1. Coca-Cola constitutes 29% of the Trefis price estimate for Coca Cola's stock. 2. Powerade & Other Brands constitute 19% of the Trefis price estimate for Coca Cola's stock. 3. Diet Coke constitutes 15% of the Trefis price estimate for Coca Cola's stock.

Diet Coke's International Revenue per Case 16 Diet Coke's International CSD Market Share 17 Diet Coke's US Revenue per Case 18 Diet Coke's US CSD Market Share 20 Coca Cola Family Gross Profit Margin 21 SPRITE & FANTA

Sprite's Global Revenue per Case 22 Sprite's Global CSD Market Share 24 Global Carbonated Soft Drinks Market Size 25 Sprite & Fanta Gross Profit Margin 27 DASANI

Dasani International Revenue per Case 28 Dasani's International Market Share 29 International Bottled Water & Beverages Market Size 30 Dasani Gross Margin 32 MINUTE MAID

See the Interactive Valuation Breakdown on Trefis Our share price estimate and the overall company value is derived by summing-up the values of individual divisions/businesses in a sum-of-theparts analysis. The value of each division is calculated using a discounted cash flow (DCF) methodology. We forecast fundamental drivers like pricing, market share, and profit margins for different businesses in estimating the division’s value within the

Minute Maid International Revenue per Case 33 Minute Maid's International Market Share 35 Fruit Juices & Energy Drinks Gross Profit Margin 36 COKE ZERO, SPRITE ZERO, BARQ & OTHER

Coke Zero, Barq & Other Brands

DCF framework. The analysis below primarily focuses on those important forecasts that drive our share price and value estimate. Our complete analysis, including sources of historical data, underlying equations and additional discussion are available on www.trefis.com. — POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE —

Global Revenues 37 Coke Zero, Barq & Other Brands Profit Margin 38 APPENDICES

Below are key drivers of the Coca-Cola Company that present opportunities for upside or downside to the current Trefis price estimate: Coca-Cola Family Gross Profit Margin • Coca-Cola Gross Profit Margin : Margins declined substantially in 2011 due to acquisition of Coca-Cola Enterprises'(CCE) North American bottling operations. Moreover, higher cost of goods in recent years caused the gross profit margin to fall from 64.4% in 2008 to 60.9% in 2011 and 60.3% in 2012. If the commodity prices remain high and the margins deteriorated to 58%, we could see the Trefis price estimate revised downwards by 5%. — SOURCES OF VALUE —

Summary P&L for Coca Cola 42 Detailed Coca-Cola P&L 43 Detailed Powerade & Other Brands P&L 44 Detailed Diet Coke P&L 45 Detailed Sprite & Fanta P&L 46 Detailed Dasani P&L 47 Detailed Minute Maid P&L 48...
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