Integrated Annual Report 2023

OPEN UP

MOMENTS

THAT

REFRESH

US ALL

Integrated Annual Report 2023

THAT

REFRESH

US ALL

Please click here to view our

integrated report online:

coca-colahellenic.com/IAR2023

Reporting on a purposeful year

Welcome to our 2023 Integrated AnnualReport.

Here, we share progress on a year in which we

defined our purpose, Openupmoments that

refresh us all, energising us to be more collaborative,

more resilient and more agile in how we do things.

We hope you enjoy reading about how we opened

up moments for a diverse range ofstakeholders,

delivering record-breaking results, while building

onour Hellenic culture.

2023 highlights 1

Business overview 2

Chairman’s letter 5

Chief Executive Officer’s letter 6

Bringing our Culture Story

to life 9

Stakeholder engagement 12

Market trends 20

Business model 22

Growth pillar 1:

Leverage our unique

24/7 portfolio 24

Growth pillar 2:

Win in the marketplace 33

Growth pillar 3: Fuel growth

through competitiveness

and investment 40

Growth pillar 4:

Cultivate the potential

of our people 45

Growth pillar 5:

Earn our licence to operate 52

Tracking our progress 69

Financial review 75

Segment highlights 80

Materiality assessment 83

Managing risk 86

Principal risks and

opportunities 88

TCFD disclosures 108

Viability statement 113

Non-financial reporting 114

Non-Financial Reporting

under Swiss statutory law 116

EU taxonomy 118

SASB index 120

Corporate Governance

Report 123

Letter from the Chair

of the Board 124

Directors’ remuneration

report 159

Statement of Directors’

responsibilities 185

Financial Statements

Independent auditor’s report

toCoca-Cola HBC AG 186

Consolidated financial

statements 194

Notes to the consolidated

financial statements 198

Swiss Statutory Reporting

Report on the audit

of the consolidated

financial statements 266

Report on the audit of

the financial statements 270

Swiss statutory reporting 272

Report on the audit of

thestatutory remuneration

report2023 283

Statutory Remuneration

Report 285

Supplementary Information

Alternative performance

measures 295

Independent Auditor’s

Limited Assurance Report 302

Glossary of terms 310

Forward-looking statements 313

Strategic Report Corporate Governance

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023

2023 highlights

Volume

2,835.5

million unit cases

2022: 2,711.8 million unit cases

Comparable EBIT

€1,083.8m

2022: €929.7m

Profit before tax

€910.3m

2022: €623.6m

Comparable EPS

€2.078

2022: €1.706

Basic EPS

€1.730

2022: €1.134

Net sales revenue

€10,184.0m

2022: €9,198.4m

Comparable EBIT

margin

10.6%

2022: 10.1%

Net profit

€636.5m

2022: €415.4m

Primary packaging collected for

recycling (equivalent)

56%

2022: 48%

Energy-efficient coolers

55%

2022: 49%

1. For details of APMs, refer to ‘Definitions and reconciliations of

alternative performance measures (APMs)’ on pages 295 to 301.

2. Refers to net profit after tax attributable to owners of the parent.

3. Excluding Egypt.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 1

Business overview

The Leading 24/7 Beverage Partner

We are a growth-focused consumer packaged

goodsbusiness and strategic bottling partner

of TheCoca-Cola Company. Our 24/7 portfolio is

one ofthe strongest and broadest in the beverage

industry, with products that cater to a growing range

oftastes, with a wider choice of healthier options.

Our portfolio addresses both affordability and premiumisation, with

increasingly sustainable packaging, enabling us to open up moments

thatrefresh ourconsumers 24 hours a day. Ourperformance

isunderpinnedby investment in our bespoke cababilities,

deliveredbyexceptional people.

A responsible business

Sustainability is embedded in every aspect

of our business as we look to create and

share value with all our stakeholders. We

make a strong contribution to developing

the societies in which we operate through

employment and our wider supply chain,

as well as through supporting community

projects. Our progress is recognised by

themost important ESG benchmarks.

Established markets

33%

of Group revenue

11.3%

Comparable

EBITmargin

Developing markets

21%

of Group revenue

7.4%

Comparable

EBITmargin

Emerging markets

46%

of Group revenue

11.6%

Comparable

EBITmargin

Read more p52

Our journey

Our roots date back to 1951 when A.G. Leventis

founded the Nigerian Bottling Company in

Lagos. Since then, the business has expanded,

now covering Armenia to Austria, Egypt to

Estonia and Serbia to Switzerland. We now

serve 740 million consumers across 29

countries and have proven routes to market

and leading market positions in a unique

geographic footprint across Western,

Centraland EasternEurope, and Africa.

29 countries

740m consumers

32,700 employees

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 2

Business overview continued

Our 24/7 portfolio

Our portfolio includes some of the world’s

best-known beverages

We produce and sell an unparalleled portfolio of beverage brands relevant

to every customer, consumer and occasion. Our route to market includes

awide range of consumer channels – from supermarkets, convenience

stores and vending machines to hotels, cafés and restaurants (HoReCa)

– and encompasses more customers than anycompetitor. Customer

centricity iscritical for our business and we are devoted to helping our

customers grow their businesses, which in turn grows ours.

Our 24/7 portfolio has considerable growth potential, driven by our strategic

priority categories, Sparkling, Energyand Coffee.

Snacks

<2%

Premium Spirits

c. 3%

Hydration

c. 7%

Juice

Tea

c. 8%

Coffee

< 1%

Sparkling

c. 70%

Energy

c. 7%

Share of Coca-Cola HBC Group

FY 2023 revenue

Coffee

< 1%

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 3

Business overview continued

We are well positioned for sustainable growth

Leader in

thegrowing

non-alcoholic

ready-to-drink

category

We are a leader in the growing

and dynamic non-alcoholic-

ready-to-drink (NARTD)

category. The CAGR

of NARTD

between 2024 and 2028 is

expected to be4-6%

Within NARTD, wearenumber

one in the Sparkling category

in 23 out ofour 24 measured

markets. Energy as a category

continues togrow rapidly and

wehave arange of brands to

appeal todifferent consumers

across many price points.

A clear vision,

strategy

and targets

The beverage category

continues to expand and we see

strong growth opportunities

within our evolving brand

portfolio and the markets

inwhich we operate.

We have strong positions in, and

a clear focus on, our strategic

priority categories: Sparkling,

Energy and Coffee.

Our growth strategy reflects

our vision to be the leading

24/7 beverage partner and

deliver best-in-class financial

returns. It is built on five

key pillars ofgrowth, each

of whichisacorestrength

orcompetitive advantage.

Our five strategic

growth pillars

Strong capital

allocation

framework

todrive growth,

underpinned by

relentless focuson

cost and efficiency

We have a strong track record

ofdriving cost efficiencies and

this remains an important part

of our strategy.

Digital plays an ever-increasing

role in continuing to drive

efficiencies in our supply chain.

To ensure our business is fit for

the future, we are transforming

and digitalising many of our

supply chain and sales execution

processes, creating capacity

toaccelerate ourgrowth.

A diverse,

balanced country

portfolio with

strong exposure

toattractive

growth markets

Our geographic footprint

creates a diverse balance.

Wehave exposure to fast-

growing Emerging and

Developing markets as

wellas astrong foundation

inEstablished markets.

We also benefit from the

portfolio effect of exposure

to different economic cycles,

and we are proven operators

in managing risk in a variety

ofsocio-economic conditions.

The strongest,

broadest portfolio

of brands,

anchored around

an exceptional

partnership with

The Coca-Cola

Company

We have high-growth

opportunities across high-value

occasions and categories.

Ourflexible portfolio caters

toagrowing range of tastes

andpreferences, with a wider

choice of both affordable and

premium products, and a wide

range ofhealthier options.

Our Sparkling portfolio has

evolved with the proliferation

of zero-sugar and light variants,

single-serve packs and broader

innovation in flavours.

Leverage

our unique

24/7 portfolio

Leverage

our unique

24/7 portfolio

Win in the

marketplace

Win in the

marketplace

Fuel growth

through

competitiveness

and investment

Fuel growth

through

competitiveness

and investment

Cultivate the

potential of

ourpeople

Cultivate the

potential of

ourpeople

Earn our

licence

to operate

Earn our

licence

to operate

Read more p24 to 68

1. CAGR: Compound annual growth rate

2. ROIC: Return on invested capital

3. Average of annual comparable EBIT growth from 2019-2023

+4-6%

NARTD CAGR

2024-2028

+450 bps

single-serve mix

improvement since 2021

c. 80%

in Developing and

Emergingmarkets

by volume, 2023

16.4% ROIC²

FY2023

>10%

EBIT

growth per

annumsince 2019

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 4

Chairman’s letter

Dear Stakeholder,

Underpinned by a new, clear purpose and by

consistently applying our 24/7 beverage strategy,

Zoran and the executive team have delivered

another year of strong operational and strategic

progress and record financial results.

Leading with purpose and responsibility

The Board has been proactive in representing

theinterests of all stakeholders on diverse issues,

assisting the leadership team to make informed

decisions on strategic investments, stretching

goals and sustainability.

At our investor day in Rome, Zoran, Ben, Naya and

the team outlined how our Growth Story 2025 is

driving revenue growth, margin improvements

and sustained strong cash generation. Ispeak on

behalf of the Board when I express great optimism

for the years ahead, knowing we have built strong

foundations through thoughtful investment, an

adaptable culture andsustainability leadership.

Our new Board members

I was delighted to welcome two new Board

members, Evguenia Stoitchkova and George

Pavlos Leventis, in 2023. They bring a wealth of

experience from the beverage sector, and I am

looking forward to working with them.

Dividend growth and capital returns

The Board has maintained our progressive

dividend, and for 2023 is proposing €0.93 per

share, a 19% increase on the dividend per share

versus the prior year, representing a 45% pay-out

ratio, within our targeted range of 40% to 50% of

comparable EPS. The consistent growth in our

dividend is testament to our confidence in the

strong fundamentals of our business, as well as

ourcommitment toshareholders.

The Group’s capital allocation framework follows

clear priorities: organic investment in the business

to drive delivery of our medium-term financial

targets; paying a progressive dividend; strategic

M&A; and additional capital returns. With these

priorities in mind, the Board believed that the

2023 share price undervalued future growth

opportunities, and approved a share buyback

programme aimed at returning up to €400 million

to shareholders. This is a compelling opportunity

to enhance value for shareholders, while

continuing to invest in the business.

Looking ahead

Another record year in 2023 is evidence that our

approach is the right one. We can be proud to be

able to reward colleagues around the Group for

their dedication and professionalism during often

challenging times. Thanks, as always, to the Board

for steering the ship in another productive year,

and we look forward to the moments that we will

open up for all our people, customers, partners

and wider stakeholders in 2024.

Anastassis G. David

Chairman of the Board

I have great optimism for

the years ahead, knowing we

have built strong foundations

through thoughtful investment,

an adaptable culture and

sustainability leadership.

I look forward to the moments

that we will open up for all our

people, customers, partners

andwider stakeholders in 2024.”

Leadership for long-term success

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 5

In 2023, we achieved a third

consecutive year of double-digit

growth and record profit while

building on our Hellenic culture.

I am deeply proud of all that our

dedicated team achieved together

and, moreimportantly, how we

delivered it with our incredible

team spirit. We look forward to all

that we canachieve in 2024 as we

build on our strong relationships

with our partners and customers,

creating value for all we serve.”

Chief Executive Officer’s letter

In 2023, we delivered strong results as we

built on the momentum of the last few years,

focusing on partnerships, our 24/7 portfolio

andexcellent execution. We invested in our

people and capabilities and made steady progress

towards a more sustainable future. All of this was

underpinned by the definition of our purpose:

Open up moments that refresh us all. This

purpose is our North Star and draws on over 70

years of history. It is based on our innate values

and our hopes for our next chapter of growth

as we open up many new opportunities with

ourcustomers, partners and communities.

Fundamentally, we aim to drive impact, operating

always with a growth mindset and a belief in

creating a better shared future. Our colleagues

across all our markets have truly embraced our

refreshed purpose, energised to be collaborative,

more resilient, and more agile in how we do things.

After three challenging years, managing carefully

through the COVID-19 pandemic, the war in

Ukraine and the economic headwinds of high

inflation and sometimes weaker consumer

spending, 2023 came with new challenges which

we were ready toadapt to. Our dedicated and

talented team came together to deliver another

year of strong growth, improving margins and

record revenues and profit.

Strong partnerships, a 24/7 portfolio

andunrivalled market execution

We believe that strong partnerships are

fundamental to growth. With our vision to be

theleading 24/7 beverage partner, we strive with

determination to be the first choice and preferred

partner for collaboration. Hand in hand with

TheCoca-Cola Company (TCCC), Monster, all our

brand partners and suppliers, and alongside our

customers, we are winning with agility, innovation

and a future-focused approach.

Our priority categories of Sparkling, Energy

andCoffee represent close to 80% of the

revenueof the business, with significant

headroom for growth, driven by increased

consumer consumption and share gains,

supported by innovation, strong customer

relationships and unrivalled market execution.

Our partnership with TCCC is at the heart of our

24/7 portfolio success, starting with our core

focus behind our wide range of excellent sparkling

brands, which are loved across all our markets.

Likewise, with Monster we are able to offer high-

quality energy brands across the price point

spectrum – from Predator and Monster to Burn.

In 2023, our coffee strategy with Costa Coffee

and CaffèVergnano worked very well across the

mass-premium and premium segments, with

volume growth over 30%.

A refreshing purpose

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 6

Chief Executive Officer’s letter continued

Building on our strong relationships with both

TCCC and Brown-Forman, we were pleased to

launch ready-to-drink Jack Daniels and Coca-Cola

in several markets with more planned for 2024.

In Premium Spirits, our portfolio was enhanced

with the acquisition of Finlandia. This highly

regarded vodka brand paves the way for

incremental growth for our core portfolio, through

enhanced mixability and relevance in strategically

important channels, such as HoReCa.

Investing for growth

Throughout 2023, we invested in technology,

innovation, partnerships, and in building our

bespoke capabilities, undertaking more digital

transformations and integrations than ever

before. This will ensure we remain competitive,

agile and ready for future growth.

We have one of the strongest sales teams in the

industry thanks to consistent investment behind

our comprehensive development programme,

Sales Academy. We recognise that the capabilities

of our sales teams are critical to our success and

the success of our customers.

Similarly, in 2023, our Data and Analytics Academy

was rolled out across all business units and

functions to accelerate a culture of data-driven

and insight-led decision making.

Throughout the year, we invested in

programmesto simplify our business and

make our colleagues’ lives easier. For example,

Project Oxygen is reducing complexity to enable

focus on value-adding activities, always having

thecustomer experience in mind.

Meanwhile, we continued to strengthen the

diversity of our workforce through workplace

inclusion activities and with steady progress

towards gender balance. With employee

engagement scores rising further in 2023,

itisanencouraging sign that our approach

topeople and culture is on the right track.

Opening up a more sustainable future

In 2023, our global industry leadership in

sustainability was confirmed when, for the

seventh time, we were rated the world’s most

sustainable beverage company by the Dow Jones

Sustainability Indices (DJSI). We now have the

highest scores and rankings in ten of the most-

recognised ESG ratings, including CDP Climate

and Water, ISS ESG, MSCI ESG, Sustainalytics,

FTSE4Good and Vigeo Eiris.

Critically, we made great progress towards our

Mission 2025 goals as well as our aim to achieve

net zero emissions by 2040 and have a net positive

impact on biodiversity in critical areas of our value

chain. All this progress is the result of our clear

vision and targets in sustainability, our bold and

entrepreneurial mindset, and our strong belief

that sustainability is a true creator of growth

and value for our business, our partners and

ourcustomers.

Reflecting on some highlights from 2023,

Romania became our first market to have all

threeelements of plastic packaging circularity.

With the introduction of a Deposit Return Scheme

which we championed, collection rates will be

significantly increased in the market. In 2023,

wealso invested in in-house recycling capability

inRomania, building on similar investments in Italy

and Poland. With the investment in Romania, we

are able to produce 100% of our plastic bottles

from recycled material. In this way, we close the

circle so that the bottles we put into the market

will be returned, recycled and given new life as a

new bottle. This is just one example as, by the end

of 2023, we had deposit return schemes in six of

our markets and 42% of the plastic we used in our

bottles across our EU and Swiss markets was rPET.

Meeting colleagues

at the opening of

our new returnable

glass bottling line in

Austria

With our business

developers in

Greece

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 7

Chief Executive Officer’s letter continued

We continue to drive innovations in

sustainablepackaging. For example, in

Austriawecommissioned a new returnable

glass bottle line for both our universal 1 litre and

new 400ml refillable bottles, and introduced

an industry-leading, innovative paper solution

to replace shrink plastic film on multi-packs

of 1.5 litre PET bottles. Innovation is critical

to developing new technologies and, for this

reason, we became a partner in the $137.7 million

GreycroftCoca-Cola System Sustainability Fund,

with seven other bottlers and TCCC, focusing

on developing innovative packaging and other

carbonreductionsolutions.

As I reflect on the scale of the challenge, I am

encouraged that our continued investment

in technology, innovation and partnerships

alongside our culture of learning and trying

new things will help us carve the path to a

moresustainable future.

In true Hellenic spirit, we continued to focus on

making a positive impact on the communities

in which we operate. Through our flagship

community programme, #YouthEmpowered,

wehave supported young people with training

anddevelopment, reaching almost 1 million

individuals since 2017.

We also played our part to help communities

in need with product donations, volunteering

initiatives and disaster relief activities. Building

on our long-standing tradition of community

action, in 2023 we announced the establishment

of a charitable foundation – The Coca-Cola HBC

Foundation – with an initial donation of €10 million,

dedicated to supporting local communities.

Thiswill empower us to take action quickly

whereitis needed most.

In 2023, we continued to support our colleagues

and communities in Ukraine. Since the start of the

war, more than $35 million has been committed

together with the Coca-Cola System and The

Coca-Cola Foundation to support those in need.

Strong financial performance

Our clear purpose and vision, trusting

partnerships, unbeatable portfolio, consistent

investment, excellent market execution by a

customer-focussed, talented and compassionate

team have resulted in a third year of double-digit

growth and record profits. This year, I am deeply

proud of the team as together, we crossed a

historic milestone exceeding for the first time

€10billion of revenue and €1 billion of comparable

EBIT. In this year of strong financial performance,

we launched ashare buyback programme, further

increasing our returns to shareholders.

Outlook for 2024 and beyond

Throughout 2023 and in recent years, we have

built strong momentum and great resilience

to overcome the challenges we face while

growing the business the right way. Although

we expect the macroeconomic and geopolitical

environment to remain challenging in 2024,

I am confident we have all the ingredients

for continued growth and success. We will

remain focused onpremiumisation and

affordability, leveraging our 24/7 portfolio and

our partnerships.Wewillcontinue to listen to

our customers and consumers, understanding

market trendswhile investing in and deploying

ourbespoke capabilities.

I would like to close by thanking all my colleagues

for their tireless efforts, for their commitment to

our company vision, our customers and partners.

I would also like to thank our customers, The

Coca-Cola Company and all our partners for

their ongoing trust and support throughout the

year, which motivates us to keep raising the bar.

Together, we have achieved great things; we

have made a difference and created value for all

we serve. I look forward to all that we will achieve

together in 2024 as we open up moments that

refresh us all.

Zoran Bogdanovic

Chief Executive Officer (CEO)

Watch this interview with our CEO, Zoran

Bogdanovic, on how we opened up moments

forall our stakeholders in 2023.

Watch the video interview online

we expect the macroeconomic and geopolitical

affordability, leveraging our 24/7 portfolio and

our customers and consumers, understanding

market trendswhile investing in and deploying

Participating in a panel discussion

at the opening of our rPET facility

opening in Romania

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 8

OPEN UP

MOMENTS

THAT

REFRESH

US ALL

REFRESH

US ALL

Bringing our Culture Story to life

Our new purpose

links our vision

to how wegrow

We open up opportunities for

ourcustomers and partners

• We put our customers first, creating

shared value and growing their, and

our,business.

• TCCC is our longest standing and closest

strategic partner: we have worked

together since 1951.

• Partnership with our suppliers helps us to

avoid supply chain disruptions and reduce

emissions across the value chain.

We open up employees torealise

theirfullpotential

• People are the key driver of our

growthstrategy.

• We are investing in our people, building

thebest teams in the industry and creating

an inclusive growth culture.

We open up life to experiences

thatrefreshanddelight

• Our 24/7 portfolio caters to a growing

range of tastes and offers choice

across every occasion, all in increasingly

sustainable packaging.

And we open up the chance to make a

difference in the world as one Hellenic

• We are a part of our communities,

providing employment directly or

throughthe wider valuechain.

• We are fully committed to our ambitious

netzero target and our Mission 2025

sustainability targets.

About our impact on each stakeholder group.

Read more on p12 to 18

It is our optimistic spirit that drives us

towards new markets, new relationships,

new innovations, developmentopportunities

and new ideasfor a betterfuture.

In 2023, we asked, why?

Why do weexist?

When we thought aboutthe

answer, we realised that, for

an organisation that puts

so much into everything

we do, our impact happens

only when we let it out,

when we open up. And our

new purpose was born: to

‘open up moments that

refresh us all’.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 9

We are always

customer-centric.

We believe in the

power of listening

to understand,

always acting

to exceed our

customers’

expectations.

WE OVER I

We love smart

people, but we

believe the power

of a team can

achieve what

anindividual can

only dream of.

MAKE IT

SIMPLE

We nurture

curiosity and

agility, and we

believe that

complexity can be

reduced by having

the discipline

andcourage to

focus on what

matters most.

DELIVER

SUSTAINABLY

We are built to

last and believe

in achieving

sustainable

results, creating

and sharing value

for our people,

environment,

shareholders and

the communities

we serve.

Bringing our Culture Story to life continued

It is a story about who we are, our purpose, our vision,

ourvalues, how we need to evolve andthebehaviours

wecommit to each other at Hellenic.

Underpinning our new purpose are our values that underline

our culture and are incorporated in our new leadership model.

Everything we do drives impact – turning our actions into results.

We introduced our new

leadership model at our

Leadership Conference

inCairo in March.

It translates our values into

keybehaviours, clearly stating

how we do things in Hellenic

and act at our best.

We set up townhall events

toengagecolleagues in our

new purpose, values and

Culture Story.

And we set up ‘culture labs’ to

build a common understanding

across the business and for

teams to embed the culture

inthe everyday. Our business

units have taken the Culture

Story forward in their own locally

relevant ways – from internal

roadshows to commercial

events – linking ourculture to our

business goals and priorities.

We have listenedto colleagues’

thoughts and experiences

aroundour CultureStory, starting

with ourcultureand engagement

survey inSeptember 2023.

From asking the question

‘why?’ and from listening to our

colleagues, we learned that our

employeesfeel proud to be part

of CCHBC, they feel respected

and work in a safe environment.

They believe strongly in our

strategic priorities, andthey see

the linkbetween these priorities

and their work. Of course, we

are at the start of ourjourney in

embedding our new leadership

model and our values, and in

2024 we have a full programme

to make living our culture a

refreshing part ofthe everyday.

1. In Serbia and Montenegro, senior leaders

meet, connectingvalues with strategic

business unit priorities inpanel discussions.

2. Adria (Bosnia and Herzegovinia,Croatia

and Slovenia):one of theculturelabs bringing

colleaguestogether from across the

business to putactionable plans into place.

3. To support theroll-outofour refined

purpose,anew culturemanifestoisbeing

introduced,alongwith a newleadership model,

during the LeadershipConferenceinCairo.

4. Greece andCyprus: internalroadshows

and engagement daysto manifest our

cultureand boost engagement.

Our Culture Story builds

on solid foundations from

the past five years

Read more p40 to 68

Our people

Opening up

opportunities

for personal

growth for our

employees

Investing in our people

Cultivating and opening up our people’s

potential is one of our five strategic pillars.

Onlywith the engagement of our people

canweachieve our vision and growth agenda.

This is why talent development is one of our

lighthouse capabilites, and you can read more

about this on page 50.

We are proud that, every year, our people deliver

exceptional results due to their tireless efforts.

The Deposit Return Scheme launch

opened up so many moments for

me and made me so proud... proud

to be at Coca-Cola HBC, because

what we were doing not only had

a business purpose, but an overall

goal for Romania asacountry.”

Alice Nichita

Corporate Affairs and Sustainability

Director,President at National Soft Drinks

Association, Romania

Stakeholder engagement

Director,President at National Soft Drinks

Watch the video online

Hear more about Alice’s open up

moments in2023 in this short video

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 12

Stakeholder engagement continued

Our customers

Material issues

• Socio-economic impact

• Nutrition

• Packaging and waste

management

• Food loss and waste

Growth pillars

Leverage our unique

24/7 portfolio

Win in the marketplace

Key challenges

• Opportunities for growth

and value creation

• Offering a 24/7 beverage

portfolio that meets the

changing preferences

ofconsumers

• Supply and delivery

challenges

How we engage

• Key account managers

engage with our customers

at a strategic level

• Our business developers

visit outlets with digital tools

and insights to add value

• Partnering to reduce

foodloss and waste

• Introduce new packaging

types and support

packagingcollection

Outcomes of engagement

• We increased direct

engagement via our

customer teams and via

customer surveys

• Programmes to reduce

food loss and waste

• Piloting of new packaging

solutions, such as

packageless

Relevant KPIs

• Volume and organic

revenue growth

• Customer feedback

fromsurveys

• High merchandising

standards

• Cooler coverage of high-

potential outlets

Principal risks

• Changing retail

environment

• Product quality

andfoodsafety

• Competing in the

digitalmarketplace

• Product relevance

andacceptability

Opening up

engagement

with customers

Real-time feedback and action

Our ability to win in the marketplace is

downto opening up dialogue with customers,

strengthening customer partnerships and

driving repeat purchases.

We use CustomerGauge, ‘voice-of-customer’

software to engage with our customers in real

time. This way, we can listen more effectively,

capture better and more actionable insights

and empower our customer-facing teams

tosolve problems quickly. You can read more

inWin in the Marketplace on page 33.

At Coca-Cola HBC, we define

whether we are customer centric

only when our customers tell us

we are. As a business, our aim is

to digitally connect with 100%

of our customers within the next

five years. We want the feedback

to be fast, digital and in real time

to increase the speed that we

respond to our customers.”

Stuart Ward

Head of Sales Capability

Read more p24 to 32 and 52 to 68

Our consumers

Material issues

• Socio-economic impact

• Nutrition

• Product quality

• Responsible marketing

Growth pillars

Leverage our unique

24/7 portfolio

Earn our licence

tooperate

Key challenges

• Ensuring product safety

and supply

• Continuously evolving

our products to meet

consumers’ needs for

healthy hydration, quality,

taste, innovation and

convenience

How we engage

• Together with TCCC, we

understand consumers’

needs and preferences

through our access to

consumer insights

• Consumers also provide

feedback on social media

and via consumer hotlines

Outcomes of engagement

• We continued to evolve

our portfolio to address

changing consumer

moments and invested

further in digital and

e-commerce to meet

newshopper needs

Relevant KPIs

• Percentage reduction

ofcalories per 100ml SSD

• Number of

consumercomplaints

Principal risks

• Product quality

andfoodsafety

• Product relevance

andacceptability

Opening up

tastebuds

Consumer-focused innovation

The Coca-Cola Company (TCCC) owns,

develops and markets its brands with the end

consumer, and has an increasingly digital way

of connecting with consumers. We produce,

distributeand sell these beverages, working

together to ensure we have the right portfolio

for Hellenic markets and to ensure excellent,

efficient execution.

Our 24/7 product portfolio caters to a range

of tastes and preferences, and we continually

innovate, especially in low- and no-sugar

variants, to lead the sector and give choice

toourconsumers.

We have today in The Coca-Cola

Company around the world more

than 10,000 influencers at any

given point in time, with different

segments, different passion

points and different topics that

really connect ultimately with the

consumer. That is also absolutely

the case in the Hellenic territories.”

Manolo Arroyo,

EVP and Global Chief Marketing Officer, TCCC

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 14

Stakeholder engagement continued

Read more p40 to 44 and 52 to 68

Our communities

Openingup

opportunities for

young people

We passionately believe that every young

person has the potential to thrive. Through our

#YouthEmpowered programme, we are equipping

them with the skills, experience and confidence they

need to succeed. By the end of 2023, we had trained

around 945,000 young people since the programme

launched in 2017.

We have many examples of #YouthEmpowered

programmes in the communities in which we

operate, with one example being the investment

of€165,000 in our Raise The Bar scheme in 2023

inour Adria business unit.

We are so proud of our enhanced Raise

The Bar youth programme. Our free

programme enables young people

to gain skills from experts and top

professionals, preparing them for

working in catering or tourism in

theirrespective countries.

Over 4,400 young people have

participated in the programme,

andweare proud to support all

ofthem on their learning journey.”

Bruno Jelić,

Corporate Affairs and Sustainability Director

atCCHBC Adria (Croatia, Bosnia and Herzegovina,

and Slovenia)

Material issues

• Climate change

• Corporate citizenship

• Socio-economic impact

• Packaging and waste

management

• Water stewardship

Growth pillars

Fuel growth through

competitiveness

andinvestment

Earn our licence

tooperate

Key challenges

• Climate change

• Waste from our packaging

• Water conservation

• Empowering young people

andwomen

How we engage

• We engage with customers

and partners to understand

what skills and training

young adults need in

specific markets

• Via our#YouthEmpowered

sessions we increase

theemployability of

youngpeople

• We participate actively

tosupport the set-up

andimplementation

ofnewpackaging

collectionschemes

• Addressing water

challenges in water

prioritylocations

Outcomes of engagement

• Our support of new

collection schemes is

translating into increased

collection rates for

packaging waste in

manymarkets

• We have committed

toNetZeroby40 across

theentire value chain

• Water stewardship

community projects in

water priority locations

Relevant KPIs

• Number of young

people trained in our

communities through

#YouthEmpowered

• Percentage of absolute

emissions reduction

• Number of water

stewardship projects in

water priority locations

• Percentage of primary

packaging collected

• Number of volunteering

hours

• Number of and investments

in community projects

Principal risks

• Geopolitical and security

environment

• Sustainable packaging

• Managing our carbon

footprint

• Water availability and usage

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 15

Stakeholder engagement continued

Governments

NGOs

Material issues

• Climate change

• Nutrition

• Packaging and waste

management

• Water stewardship

Growth pillars

Fuel growth through

competitiveness

andinvestment

Earn our licence

tooperate

Key challenges

• Industry and/or product-

specific policies, such

as taxes, restrictions

orregulations

• Environmental policies

How we engage

• Much of our engagement

with governments

isconducted at an

industrylevel through

tradeassociations

• We partner with local

governments to tackle

waste collection challenges

and water availability

Outcomes of engagement

• In response to regulations

and levies on certain

types of plasticpackaging,

we have lightweighted

packages and used more

sustainable materials

• To address health and

nutrition concerns, we

continue to add low- or

no-sugar drink options

inevery market and

providetransparent

nutritional information

Relevant KPIs

• Percentage of absolute

emissions reduction

• Percentage reduction of

calories per 100ml SSD

• Percentage of primary

packaging collected

• Number of water

stewardship projects in

water priority locations

Principal risks

• Product-related taxes and

regulatory changes

• Ethics and compliance

Material issues

• Climate change

• Corporate citizenship

• Human rights, diversity

andinclusion

• Packaging and waste

management

• Water stewardship

• Food loss and waste

Growth pillars

Earn our licence

tooperate

Key challenges

• Climate adaptation, move

towards net zero emissions

and water and energy use

• Packaging waste

• Sustainable sourcing

• Partnerships with

communities and

grassroots organisations

• Diversity and human rights

How we engage

• We include NGOs and

community partners in our

leadership development

programmes, offering

online training for

managing virtual teams and

leading in times of crisis

• We partner with specific

NGOs for targeted

environmental and

socialprojects

• We engage through our

annual Group Stakeholder

Forum and our annual

materiality assessment,

as well as through ad

hocmeetings

Outcomes of engagement

• Percentage of participants

from NGOs in our first-time

manager programmes

• Increased number of

community projects

forwaste reduction,

waterstewardship

andcarbon removal

Relevant KPIs

• Number of and investments

in community projects

Principal risks

• Sustainable packaging

• Managing our carbon

footprint

• Suppliers and sustainable

sourcing

• Water availability and usage

• Ethics and compliance

Read more p40 to 44 and 52 to 68

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 16

Watch the video online

In this short video, Anna Erniša, Chief

‘Hug’ Officer at Mondi, describes the

story of ‘Hug-IT’ and the many open-

up moments on the project

Stakeholder engagement continued

Our suppliers

Material issues

• Climate change

• Sustainable sourcing

• Water stewardship

• Socio-economic impact

• Biodiversity

Growth pillars

Fuel growth through

competitiveness

andinvestment

Earn our licence

tooperate

Key challenges

• Rising costs of ingredients,

labour, packaging materials,

energy and water

• Minimising the

environmental impact of

water and energy resources,

as well as emissions

• Traceability in the whole

value chain, including Tier 2

and 3 suppliers for human

rights risk, biodiversity

How we engage

• Feedback received

through our annual Group

Stakeholder Forum

• Regular, ongoinginteraction

with the Coca-Cola System’s

central procurement group

and our technology and

commodity suppliers

Outcomes of engagement

• Our long-term work with

partners to reduce our

water and energy use has

also brought efficiencies.

This is particularly

important given our

NetZeroby40 commitment

• Activitiesrelated to

sustainable sourcing

andcertifications

Relevant KPIs

• Percentage of key

agricultural ingredients

sustainably certified

• Percentage of our suppliers

adopting our Supplier

Guiding Principles

Principal risks

• Sustainable packaging

• Water availability and usage

• Commodity costs

• Ethics and compliance

• Managing our carbon

footprint

• Suppliers and sustainable

sourcing

Opening up

newinnovation

in packaging

In 2023, we launched an innovative packaging

solution for 1.5 litre Coca-Cola, Fanta and Sprite

multipacks, replacing plastic with 100% recyclable

paper, in Austria.

Hug-IT is a stretchable paper band that replaces

plasticfilm, securely holding a six-bottle multi-

pack during transportation from customer shelf

toconsumer’s cupboard, ensuring it stays intact

and that our branding looks great.

We worked closely with paper manufacturer Mondi

and equipment manufacturer Krones, to develop

the solution over a three-year period. You can read

more on packaging innovation in Earn our licence

to operate on pages 58 to 60.

Seeing the production of the ‘Hug-

IT’ sleeve for the first time with our

partners – Coca-Cola HBC and Krones

–was a great moment. It was great

tosee it worked out!”

Anna Erniša

Chief ‘Hug’ Officer, Mondi plc

Read more p24 to 39 and 45 to 68

Material issues

• Nutrition

• Responsible marketing

• Sustainable sourcing

• Corporate citizenship

Growth pillars

Leverage our unique

24/7 portfolio

Win in the marketplace

Cultivate the potential

of our people

Earn our licence

tooperate

Key challenges

• Support for consumers,

customers and

communities

• Profitable growth

opportunities

• Value share in our markets

• Sustainable sourcing

How we engage

• Day-to-day interaction as

business partners, joint

projects, joint business

planning, functional

groups on strategic issues

and ‘top-to-top’ senior

management forums

Outcomes of engagement

• Our partnership added

tothe strength and depth

of our 24/7 portfolio,

especially with the launch

of Jack and Coke in three of

our markets

• We became a partner with

TCCC and seven other

bottlers, in the Greycroft

Sustainability Fund

Relevant KPIs

• Revenue

• Value share

Principal risks

• Suppliers and sustainable

sourcing

• Strategic stakeholder

relationships

Material issues

• Socio-economic impact

• Climate change

• Packaging and waste

management

• Corporate governance

Growth pillars

Leverage our unique

24/7 portfolio

Win in the marketplace

Fuel growth through

competitiveness

andinvestment

Earn our licence

tooperate

Key challenges

• Increasing focus on ESG

and ESG incentives

• Maintaining focus on long-

term potential of the Group

rather than shor t-term

volatility

How we engage

• Communication during

our Annual General

Meetings, investor

roadshows, press releases

and results briefings and

ongoing dialogue with

analysts andinvestors –

for example, held the first

investor day in three years

in May

Outcomes of engagement

• Stepped up consultation

efforts and strengthened

two-way dialogue

between the Company

and investors, ensuring

both good understanding

of long-term Company

strategy in the markets

and that investor concerns

are considered in

decisionmaking

Relevant KPIs

• Management access

and positive investor

perceptions of strategy

• Total shareholder return

Principal risks

• Sustainable packaging

• Changingretailenvironment

• Commodity costs

• Product-related taxes and

regulatory changes

• Foreign exchange

fluctuations

• Managing our carbon

footprint

• Geopolitical and security

environment

• Suppliers and sustainable

sourcing

Stakeholder engagement continued

Read more p24 to 44 and 52 to 68

Opening up

dialogue with

investors

In 2023, we stepped up our ESG conversations

with investors, opening up a two-way dialogue

ona wide range of topics.

The Company is clearly on the front foot

when it comes to things like DRS, and

people value the work with different

stakeholders to nudge policy change.

One area opened up for me in 2023,

was understanding the sheer level

of effort and resources that goes on

behind the scenes on this – more than

Ianticipated.”

UK-based, top 20 institutional investor

A wide rangeof

investors and

analysts participated

in ourinvestor

day in Rome in

May, meeting

management from

CCH and TCCC.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 18

Section 172 of the UK Companies Act 2006

requires directors to promote the success

of their company for the benefit of the

members as a whole, having regard to the

interests of stakeholders in their decision

making. Engaging with stakeholders is an

indispensable part of how Coca-Cola HBC

does business. The Board considers the

interests of the Group’s employees and

other stakeholders in its decision making

as a matter of good governance, and

understands the importance, and value, of

taking into account their views, as well as

considering the impact of the Company’s

activities on the community, environment

and the Group’s reputation. The Board

also considers what is most likely to

promote the success of the Company for

its shareholders in the long term. Although

the Company is Swiss incorporated and, as

such, the UK Companies Act 2006 has no

legal effect, this approach is in accordance

with the UK Corporate Governance

Code2018.

How we manage risks and materiality

How we engage with key stakeholders

Section 172 statement

Read more p12 to 18

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 19

Market trends

We operate in fundamentally attractive categories, supported

in the long-term by population growth, growing personal

spending power and a product that opens up moments that

refresh in a differentiated way, creating strong brand loyalty

and inelastic consumer behaviour.

Sparkling servings per capita, 2022

Growth categories

We operate in very attractive

growthcategories

Non-alcoholic ready-to-drink (NARTD) is a

large, growing and resilient category, and the

same characteristics are present in coffee,

making it an incredibly attractive opportunity

for us as well. In terms of the industry value, we

expect further strong growth in demand both in

NARTD and coffee. Increased demand is driven

by population growth in many of our markets,

plus category expansion – the propensity for

consumer tastes tochange and expand and how

we both spark and satisfy demand.

We measure servings per capita in our markets,

and can see where there is headroom to

growconsumption.

We also look at purchasing power in our markets

and react with appropriate offerings to address

affordability and meet consumer needs.

While there are

significant geopolitical

and economic trends

that can influence

overall market growth,

our focus is mainly on

the following five areas:

retail, consumer, digital,

sustainability and

regulatory. These areas

are where we react

dynamically and create

long-term value for our

customers, consumers

and shareholders.

Non-Alcoholic

Ready toDrink

(NARTD)

4-6%

CAGR 2024-28

€68bn

market value2022

€32bn

market value2022

4-5%

CAGR 2024-28

Coffee

Source: internal system projections,excludingRussia

andUkraine.

United States 509

Ireland

356

Hungary

342

Romania

302

Spain

274

Czech Republic

265

Switzerland

263

Developing

229

Europe

298

Established

197

Poland

196

Greece

191

Italy

159

CCH

142

Egypt

116

Emerging

110

Nigeria

1. Based on internalindustry estimates andUN Population 1 July2022,

excluding Russia andUkraine.

Retail

Trends within our portfolio

In 2023, category value growth grew significantly,

reflecting inflation-related price increases andmix

changes with a greater focus on single-serve packs.

Category volume increases were lower than in

2022, reflecting tougher comparatives and insome

markets weaker consumer spendingpower. Weaker

consumer demand also impacted volumes in hotels,

restaurants and cafes, although value growth

remained healthy.

The impact of private label in ourcategories

remained modest, with the biggest shifts being

seenin the less differentiated category of water.

How we are responding

We sustained ourfocus on improving our single-

serve mix and continued driving the shift from multi-

serve packs to single-serve packs across all markets,

and in both the at-home and out-of-home channels.

We continuedto invest in digital tools and our

data, insights and analytics capability to ensure we

provided retail customers with relevant insights

to maximisetheir value-added. This contributed

to an improved Net Promoter Score(NPS), further

improvements to pack mix, and value and volume

share gains in key channels and mostmajor markets.

Growth pillars

Leverage our unique 24/7 portfolio

Win in the marketplace

+3.2 pp

We further improved single-serve mix by 3.2

percentage points across our Established

markets in 2023, and by 1.1pp

across the

Group

1. pp: percentage points

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 20

Market trends continued

Consumer Digital Sustainability Regulatory

Trends within our portfolio

Cost of living remainsan important theme, with

sustained high levels of food inflation in many

markets putting consumers’ disposableincome

under pressure.

As a result,consumers have become more

sensitiveto price increases, although inour NARTD

and Sparklingcategories, volumes have held up

remarkably well. While affordability remains a key

theme, premiumisation opportunities remain as

shoppers seek quality and small treats despite

budget pressures.

How we are responding

We continueto adapt our portfolio to deliver

both affordable offerings as well as premium

products presented in appropriate packs sizes and

combinations to offer consumers attractive choice.

To support category growth, we have focused

on a wider range of single-serve offerings – and

multi-packs of single serves, as well as affordable

multi-serve options. This allows us to compete

at attractive price points for the consumer and

penetrate smaller baskets in a more effective way.

Trends within our portfolio

2023 continued theglobal digitalisation trend.

Consumers have become much more comfortable

and familiarwith e-commerce. Technology has

advanced, and both convenience and ease-of-use of

online shoppinghave improved. Companies continue

to invest indigital tools to improve efficiency of

operations, customer service and the effectiveness

of their marketing spend. Artificial Intelligence (AI)

was the story of 2023, withcompanies embracing AI

tool within their day-to-day operations.

How we are responding

Our investments indigital focus on driving higher

customer centricity - a personalised service for

every outlet, an improved employee experience, and

increased operational productivity - all delivering

strongerperformance, faster.

We have beeninvestingto support this through both

building talented in-house teams aswell as working

with leadingtechnology partners. For example, our

business-to-business (B2B) platform, Customer Portal,

is nowwell embeddedacross all our markets and

strengthens ourcustomer relationship management.

We have also developed eMarketplacesolutions with

SIRVIS, toaddressagrowingneed forsmallercustomers

looking for effective purchasing aggregation. We are

also investing in smart vendingsolutions.

We are also embracing AI and are developing in-

house generative AI productivity tools.

Trends within our portfolio

The sustainability landscapeis changing rapidlyand

the rate of increase of net-zero commitments by

organisations continues to grow. We see increasing

focus on nature and aspirations to shift to a nature-

positiveworld, where people and nature can thrive

together, requiring a holistic approach to the inter-

dependencies, risks and impacts across ESG areas.

Of note in 2023 was COP 28 in Dubai, wherethe

first-ever COP decision to addressfossil fuels was

adopted:a decision callingfor accelerated short-term

action and an orderlytransition away from fossil fuels

towards climate-neutralenergy systems. It signals

the ‘beginningof the end’ of the fossil fuel era,which

cannothappen without just andequitable transition,

major decarbonisation andscaled-upfinance.

How we are responding

We are keenly aware of the importance of delivering

on our plans. We continue to decarbonise our value

chain, while updatingour net-zero transition plan and

developinglong-term climate scenarios. We are also

working towards our bold commitment of achieving

a net-positive impact on biodiversity by 2040,

implementing theguidelines of the Science Based

Targets Network, and we shifted our deforestation-

free commitmentfrom 2030 to 2025.

We continueto expand our partnerships and

seek new collaborations, as our ambitious goals

andcommitments can only be achieved through

collective action.

Trends within our portfolio

In 2023, policy makers introduced several measures

to offset infationary pressures on consumers,

including price caps in specific product categories

and additional tax measures. Sustainability remained

in the spotlightin the EU, with thePackaging and

PackagingWaste Regulation (PPWR) at the forefront,

followed by proposals on consumer protection

from greenwashing, such as the directives for

Empowering Consumers for the Green Transition

and Green Claims. Significant progress was made

in the preparation and implementation of DRS

in several Europeancountries. Finally, theWorld

Health Organisation continued reviewing non-sugar

sweeteners without any changes in the status of

safety approvals from food safety authorities.

How we are responding

We remain focused oncollaborating with regulators

and governments on constructive proposals, which

address these trends. We are collaborating closely

with governments and industry partners to support

the launchof DRS in more European countries and

have made additional progress towards making our

packaging more sustainable. We continue to grow

our low- and no-sugar variants to meet consumer

and regulatory demands. Our Mission 2025 goals

remain ourcompass and we continue to play an

active role from within our industry associations in

supporting the sustainability ambitions of the EU.

Growth pillars

Leverage our unique 24/7 portfolio

Win in the marketplace

Growth pillars

Leverage our unique 24/7 portfolio

Win in the marketplace

Fuel growth through competitiveness

andinvestment

Growth pillars

Leverage our unique 24/7 portfolio

Win in the marketplace

Fuel growth through competitiveness

andinvestment

Cultivate the potential of our people

Earn our licence tooperate

Growth pillars

Leverage our unique 24/7 portfolio

Win in the marketplace

Fuel growth through competitiveness

andinvestment

Earn our licence tooperate

+110bps

We gained or maintained share in the majority

of our markets in NARTD gaining 110bps of

value share in NARTD

>4x

Contribution from digital commerce has more

than quadrupled in the last three years to over

9% of Group organic revenue

-16%

We reduced absolute carbon emissions in

allthree scopes in 2023 by 16% compared

with 2017

100%

In Romania, we now have 100% recycled,

locally produced bottles

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 21

Business model

Delivering value for

our stakeholders

4 2

How we do it

What we do

Partnering with our customers

We grow by supporting our customers’ growth,

leveraging our 24/7 portfolio, focusing on areas of

high-value opportunity and executing with excellence

Producing

beverages

efficiently and

sustainably

Using concentrate

from The Coca-Cola

Company along with

other ingredients,

we prepare, package

and deliver products

with an optimised

manufacturing

infrastructure and

logistics network.

Serving our

consumers and

communities

Our 24/7 product

portfolio caters to

arange of tastes and

preferences and we

continually innovate

tolead thesector.

Working with suppliers

We work with our suppliers to procure high-quality

ingredients, sustainably sourced raw materials, and

equipment and services required to produce beverages.

required

Human

Our success is dependent on the passion and

customer focus of our talented people – our secret

ingredient. We empower them to pursue growth

opportunities, both for themselves and our Company.

Natural

To create our products, we use natural resources

including water, energy and PET. We source these using

sustainable practices and seek to use them efficiently.

Social and relationships

Maintaining the trust of stakeholders is essential to our

business. Our most valuable human connections and

relationships are with The Coca-Cola Company, our

people and the communities we operate in, and our

customers, suppliers, governments and regulators.

Financial

Our business activities require financial capital, which

we allocate efficiently. This capital is provided by our

equity and debt holders, as well as cash flow earned

from our operations.

Intellectual

Innovation is embedded in our culture. The intellectual

property from innovation includes new packaging

know-how, new products and improvements in

manufacturing, logistics and sales execution.

Manufacturing

Investing in our plant and logistics assets allows us

toefficiently prepare, package and deliver our products

to meet the needs of customers and consumers.

We are a strategic bottling partner of

The Coca-ColaCompany (TCCC)

We have exclusive rights from TCCC in the CCH

marketswhere the Group produces, sells and distributes

TCCC’s trademarked beverages. We also partner with

other beverage businesses such as Monster Energy,

Brown-Forman and Edrington to sell their products

inourmarkets.

How our partnership works

TCCC owns and develops its brands while we are

responsible for producing, distributing and selling these

beverages, using concentrate we buy from TCCC under

an incidence-based pricing model. We work together

to ensure we have the right portfolio for our customers

and consumers in each market and to ensure excellent,

efficient execution. We also share marketing costs and

responsibilities; TCCC markets to consumers, while we

take responsibility for trade marketing to our customers.

Our capital resources

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 22

Business model continued

Read more p312

• In 2023 we employed 32,747 FTEsin29 countries

• Median basic salary ratio women/men: 1.07

• We increased the frequency of our customer

engagement, providing customers with better support

• In the marketplace we achieved a total number of 55%

energy-efficient coolers, excluding Egypt

• In 2023, we trained 150,000 young people through our

#YouthEmpowered programme to boost employability

• We invested €7.9 million in local community initiatives

• We delivered strong financial performance in 2023, with

organic revenue up 16.9% and reported revenue up

10.7%.In recognition of our business strength and future

opportunities, the Board has proposed a dividend of €0.93

per share, a 19.2% increase compared with last year

• Our business activities generate revenue for our suppliers

and contractors and their extended value chain

• We provide high-quality beverages and healthy options,

reducing calories per 100ml of sparkling soft drinks by

19%in 2023 compared to our 2015 baseline

• We spent circa €5.2 billion with local suppliers

andcontractors

• We are working with our suppliers to support their

sustainable practices and emission reduction plans

We believe that the only way

to create long-term value for

all our stakeholders is through

sustainable growth.

We create socio-economic

value for the societies in which

we operate by creating jobs,

training people, building physical

infrastructure, procuring

raw materials, transferring

technology, paying taxes,

expanding access to products

and services, and creating

growth opportunities for

our customers, distributors,

retailers and suppliers.

Measuring and managing

these contributions through

the sustainable growth of our

business is an important part

of our purpose. Since 2010 we

have conducted socioeconomic

impact studies in our markets

to better understand the range

and extent of the value we

create in our ecosystem.

>835,000

training hours

for our people

€1,248.6m

total employee

costs

42%

women in

managerial

positions

1.8m

customers

served

1 job =

12 jobs

1 job in our

system creates

12 in the

community

c.473,000

indirect

jobs across

thevaluechain

c.945,000

cumulative

number of young

people trained in

our communities

(2017-2023)

€674.9m

Capex spend

Comparable EPS grew by 21.8%

to €2.08, supported by strong

profit delivery and effective

management of finance costs

€4b

paid in taxes

€12.3b

created in added

value across our

value chain

740m potential

consumersrefreshed

appx.14,600

suppliers operating

across our value chain

c.€5.2b

spent with local suppliers

Value created Our impactSocio-economic contribution

To read the methodology

behind our socio-economic

impact numbers

Our investors

Our consumers

Our suppliers

Our customers

Our people

Our wider stakeholders

Our communities

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 23

Leverage our

unique 24/7

portfolio

Growth pillars

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 24

Growth pillars

Leverage our unique 24/7 portfolio

2023 highlights

• Continued to deliver on our strategic

priorities of Sparkling, Energy and Coffee

• Launched Jack and Coke in three markets

• Acquired Finlandia from Brown-Forman

• Focused on pack architecture and

price/mix to balance affordability

andpremiumisation

• Continued to expand ‘zero’ ranges,

including Coke Zero Zero, to meet

low-and no-sugar demand

KPIs

• Organic revenue growth

• Organic revenue per case growth

• Volume growth

Principal risks and opportunities

• Marketplace conditions

• Competing in the digital marketplace

• Product relevance and acceptability

• Strategic stakeholder relationships

Material topics

• Product quality

• Food loss and waste

• Responsible marketing

• Sustainable packaging

Stakeholders

A successful year

Our portfolio allows us to cater for the

needs of consumers 24/7 through three

strategic priorities: Sparkling, Energy

and Coffee. They represent close to

80% of the business, with significant

headroom for growth.

The success drivers of this growth pillar are market

penetration and share, supported by continuous

innovation, underpinned byour strong customer

relationships and unrivalled market execution.

A strong partnership with TCCC is at the heart

of our success.Together with TCCC, we focus

on consumerloyalty, strong innovation and

marketing investment, particularly in Sparkling.

InCoffee, our dual-brand strategy works well:

TCCC’s COSTA Coffee gives us access to the

mass-premium segment and our investment

in Caffè Vergnano gives access to the premium

segment (see our feature on page 31). Ourclose

partnership with Monster Energy bringsabroad

portfolio of energy drinks, fromaffordable to

premium brands.

Alongside Sparkling, Energy and Coffee,

wehave a diverse offering of locally relevant

brandswhere, together with TCCC, we prioritise

country and category combinations based on the

attractiveness of profitable revenue pools ineach

market. These include important growth enablers

such as juices, ready-to-drink tea, enhanced

and premium water, sport drinks brandssuch

asPowerade, and premium spirits – the latter

critical to our HoReCa offering.

Sparkling foundation

Sparkling is our key engine of growth and our

foundation. Sparkling volumes grew overall by

2.5% in 2023, on an organic basis. Excluding

Russia, where we no longer sell any brands of

TCCC, Trademark Coke brands grew 1.9%.

We have consistently invested in our core brands

with zero-sugar formulations and new flavours.

TCCC is critical in identifying the exact innovations

that work for each market or channel.

Recent innovation examples included Coca-

Cola Zero Sugar Zero Caffeine and new flavour

creations within the Fanta and Schweppesbrands.

Indeed, we have introduced new zero formulations

across all Sparkling brands, showing how constant

innovation is keeping us at the forefront of

consumer choice and customer preference.

Low- and no-sugar sparkling variants have grown

significantly since 2019, driven by consumer

demand, and now represent a material part of the

Sparkling category. Coke Zero has played a leading

role in this, driven by successful reformulation

and targeted campaigns. And we will continue to

build on the 2022 launch of Coke Zero Sugar Zero

Caffeine, with focused marketing campaigns in

2024.

We are continuing to increase the number of

flavours within zero options, as well as limited-

edition Coke Creations, and there is further

opportunity toexpand our distribution and

increase presence in emerging markets.

Our focus on growing zero formulations supports

one of our sustainability targets within Mission

2025, to reduce calories per 100ml, and you can

read about this on page 27.

Our investors

The Coca-Cola Company

Our consumers

Our customers

Leverage our unique 24/7 portfolio

2023 highlights

Read more p88 to 107

Read more p26 to 32

There is more to come

fromzero-sugarformulations.”

Naya Kalogeraki

COO

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 25

Growth pillars continued

Leverage our unique 24/7 portfolio

Adult Sparkling

Adult Sparkling revenue per case is above

theaverage for the Group and the work we are

doing on mixability is critical here, as shown in our

feature on page 29. Our Adult Sparkling portfolio

benefitted from strong performance in the

Established and Developing segments, following

a tough consumer backdrop in the first half of

the year. We continue to focus on Adult Sparkling

activations, focused on socialising, particularly

summer and festive occasions where mixability

plays an important role. In 2023, we capitalised

onconsumer trends, expanding our range of

‘pinkdrinks’, tonics and zero-sugar choices.

Thanks to the 2022 acquisition of Three Cents,

we have expanded our footprint into the super-

premium Adult Sparkling segment, targeted to

mixologists and high-end hotel, restaurant and

café outlets. We have begun distributing Three

Cents in six markets where we currently operate,

while continuing collaboration via distributors to

develop further market opportunities.

Energy opens up new consumer groups

Energy is one of the fastest-growing segments

within NARTD. We have achieved double-

digit volume growth over the past eight years,

averaging 32% in the last five years alone. In

2023, Energy made up c.7% of Group revenue.

This performance is the result of a well-defined

strategy, with a complete brand portfolio

that reflects diverse consumer needs with

premium (Burn), mid-range (Monster), and more

affordable (Predator, Ultra, BPM and Fury) brands.

Welaunched Fury and Monster in our newest

market of Egypt during 2023, and we continue to

work closely with Monster Energy to help launch

new flavours, expanding our consumer appeal

across all of our energy brands.

Through disruptive marketing platforms and a

range of flavours, we are giving consumers choice

and enticing newcomers into the segment.

We are excited about the potential of this

category and are aiming for double-digit growth

in contribution to Group revenue in the medium

term through continuous expansion in per-capita

consumption, further distribution expansion and

broadening our reach to new markets.

32%

growth in Energy average

volume(2019–23)

Coffee – core to our 24/7 strategy

Coffee continued to make good progress in

theyear, with volumes up 31.5% versus 2022 and

market share continuing to grow – see our feature

on page 31. COSTA performed strongly across all

markets and especially in the away-from-home

segment, where we added 4,000 outlets to make a

total of 11,000 outlets served (7,000 in 2022) in 20

markets. COSTA continued to gain market share

in the at-home market, as measured by market

intelligence provider, Nielsen. We rolled out Caffè

Vergnano to three more markets, bringing our

total to 17. Over the past two years, we have

already recruited over 2,000, mostly premium,

HoReCa customers, including five-star hotels and

other high-end coffee shops, bars and restaurants

that want a premium coffee experience for

their guests. Premium HoReCa, which currently

represents more than 60% of ourcustomer base,

remains our top priority for Caffè Vergnano.

Our Coffee Academy goes from strength to

strength, training over 9,000 colleagues in 2023,

both face-to-face and online, developing our

capabilities as we continue our journey to scale

and invest into this business. Overall, our aim is

toreach a low- to mid-single-digit market share

inCoffee over the mid-term.

Jack and Coke is a number one

barcall in the world, and now,

weare delighted to be able to

bring it to consumers in a new

ready-to-drink offering.”

Jonathan Scott,

Coffee and Premium Spirits Business

Director, Coca-Cola HBC Ireland and

Northern Ireland

Two years ago, Jack Daniel’s, owned by one

of our partners, Brown-Forman, and TCCC

announced that they would be teaming up

toprovide consumers with the option to enjoy

the drink inspired by one of the world’s most

popular branded ‘bar calls’ – a cocktail ordered

with specific brand names – in a convenient,

ready-to-drink format. During the second

quarter of 2023, we successfully launched

Jackand Coke in Poland, Hungary and the

islandofIreland.

Weare excited about the future of Jack

andCoke andextending its reach into

othermarkets.

Born Ready:

Jack and Coke launched

inthreemarkets

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 26

Premium Spirits

In 2023, Premium Spirits delivered a strong

performance, with volumes growing by 13.1%

onan organic basis, driven by all segments.

The acquisition of the Finlandia Vodka business

from our long-standing partner, Brown-Forman,

completed in November and is a unique

opportunity with significant geographic overlap

in our territories, enhancing our premium spirits

credentials and opening incremental mixability

opportunities for our NARTD portfolio (see case

study to left).

In 2023, we were excited by the launch of Jack

andCoke in three markets (see previous page),

and performance exceeded our expectations.

We continue to exploit our bespoke capabilities

ofdata, insights & analytics and digital commerce,

to drive revenue generation in the category, and

continue to train our business developers in our

Premium Spirits Academy. We are on track to

upskill more than 6,000 Business Developers

bythe end of 2025.

Still brands innovation

We made a number of innovations across our

Still brands in 2023, such as FUZETEA and Cappy

Lemonade flavour extensions, Cappy enhanced

blends launch, a formula upgrade for Mono fruit

nectars range, a new concept for Römerquelle

Flavoured water (launched in Austria) and entering

the enhanced waters segment by launching

Vitaminwater in Switzerland.

In 2023, Stills were exposed to a challenging

market environment, However, we managed

todeliver revenue growth across all categories,

driven by price increases and good immediate

consumption (or on-the-go consumption) and

single-serve mix for Water and ready-to-drink Tea.

Having been associated with the distribution

of Finlandia for 17 years in several markets,

we were excited by the unique and regionally

relevant opportunity to purchase the

Finlandia Vodka brand from our long-term

partner, Brown Forman, which completed

in November. The acquisition supports the

acceleration of our on-premise business

across more of our markets. The proven

complementarity of our Premium Spirits

business with our strong NARTD portfolio

enables us to offer solutions for a broad range

of 24/7 consumption occasions, particularly

socialising moments.

Finlandia distribution

markets at acquisition

markets added since acquisition

more markets planned for 2024

We view this as an attractive

investment and a natural evolution

of our role as one of Finlandia’s

distribution partners, further

attesting to the strength of our

time-tested and wide-ranging

partnership with Brown-Forman.

We appreciate the trust placed in

us and look forward to creating

more value for our partners and

customers by capturing new

opportunities with our well-

rounded beverage portfolio.”

Zoran Bogdanovic

CEO

Welcoming Finlandia to

our PremiumSpirits family

Focusing on profitable revenue growth for

Water, we grew single-serve mix and selectively

expanded into highly-accretive emerging

segments such as functional and flavoured

waters. We did, however, lose volume in the

at-home multi-serve offering, leading to an

overallWater volume drop of 5.9% versus 2022.

Helping consumers make the right

choices for their diet and lifestyle

Our purpose is to open up moments that

refresh us all, and in order to do this we listen to

consumers and customers. First and foremost,

consumers want drinks that taste good, and they

increasingly demand drinks with less sugar and

more nutritional benefits. You can read more

about nutrition trends in Market trends on pages

20 and 21 and in Earn our licence to operate on

pages 53 to 68. As part of the Coca-Cola System,

we are committed to satisfying both great taste

and healthy and balanced diets. Ouractions

across the System fall within five pillars: 1)

LessSugar, More Choices, 2) New and Different

Drinks, 3) Informed Decisions, 4) No Marketing

Targeting Children, and 5) Promoting Low- No-

Sugar Choices.

1) Less sugar, more choices

We support the recommendation of leading

health authorities that individuals should

consumeno more than 10% of their total daily

calories from added sugar. We have committed to

reduce calories per 100ml of sparkling soft drinks

by 25% between 2015 and 2025 across allour

markets. You can read more about our Mission

2025 performance in the Earn our licence to

operate section on page 53 to 68. Through these

efforts we are contributing to the European Soft

Drinks Association’s (UNESDA’s) target to reduce

addedsugar in beverages by 10% by 2025 from

a2019 baseline.

Growth pillars continued

Leverage our unique 24/7 portfolio

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 27

Priorities in 2024

• Continue to deliver on our strategic

priorities of Sparkling, Energy and Coffee

• Continue to connect with consumers

and their preferences through close

partnership with TCCC

• Focus on zeros, with increased marketing

effort behind Coke Zero Zero and

innovating to develop our range of

zeroflavours

• Integrate Finlandia Vodka into our business

and develop growth opportunities

• Continue to focus on product quality,

safety and integrity

• Develop the capabilities of our people

through our broad range of academies

2) New and different drinks – innovating and

producing new and different drinks to boost

consumer choice

From sparkling soft drinks, energy drinks, stills,

coffee, and premium spirits, to juices and snacks,

we offer drinks that meet consumers’ needs

throughout the day. Many ofour sparkling brands

now have zero-sugar orlow-sugar variants.

3) Informed decisions – giving consumers

clearand transparent information helping

them make the right choices

We provide clear and transparent nutrition

information about what’s inside our drinks,

suchasthe Guideline Daily Amount (GDA)

andtraffic-light labels on our core sparkling

drinksin22 markets.

4) No marketing targeting children

We strictly follow the Coca-Cola System

policies for Global Responsible Marketing, the

Global School Beverage Policy and the Global

Responsible Alcohol Marketing Policy.

Also, we follow the EU Code of Conduct for

Responsible Business and Marketing Practices

covering product reformulation, portion control

and responsible marketing to tackle important

public health issues, as well as to UNESDA’s

pledges. We commit to not market any of our

drinks directly to children under 13 and do not

offer any soft drinks in primary schools. Every year,

relevant employees and both direct and indirect

distributors are made aware of The Coca-Cola

Company’s Responsible Marketing Policies.

5) Promoting low- and no-sugar choices

We are taking actions to help people better

manage their sugar intake from our drinks

byreducing sugar in our beverages, innovating

new low- and no-sugar drinks, offering small

packsfor portion control and promoting our

low-and no-sugar beverage choices, including

bypromoting Coke Zero Sugar as our ‘hero’

inmany marketing campaigns.

UN Sustainable

Development Goals

We serve our consumers with a broad range

of high-quality products. In doing so, we

create value by contributing to global goals

for good health and wellbeing, innovation,

responsible production and consumption

aswell as partnerships.

Ensuring fresh, quality products

andreducing waste

Our low base of consumer complaints increased

from 0.12 to 0.14 per million bottles sold in 2023

compared with 2022, mainly due to consumer

sensitivity to the introduction of tethered

closures following new EU legislation, as well to

the fluctuating natural colour range of orange

juice concentrate. We continue to improve and

modernise manufacturing processes and to focus

on product quality, safety and integrity, within the

context of external challenges.

In Croatia, we had an isolated, unfounded incident

connected to one product. Once accurate and

factual information was available, the authorities

confirmed all our products safe for consumption.

The local team worked diligently to protect

our reputation in the market, while giving the

authorities time to complete their investigation.

As this year marks the 55th anniversary of our

operations in Croatia, and 20 years of corporate

sustainability reporting, it was an important

reminder of upholding the highest quality

standards that our consumers and customers

canrely on.

Our Supply Chain Academy has gone from

strength to strength this year, with colleagues

focusing on quality and logistics, and we continued

to mark World Food Safety Day in June and World

Quality Week in November.

We strive to minimise food loss and food waste in

our operations as this helps us preserve water and

other natural resources, avoid carbon emissions

and mitigate the social and economic impacts

ofagriculture.

Growth pillars continued

Leverage our unique 24/7 portfolio

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 28

Adult Sparkling: a ‘big bet’

andgrowth accelerator

We are primed to chase significant revenue pools, while addressing

premiumisation opportunities of our existing portfolio. Most current brands

are specially formulated and marketed to adults, appealing to a wide range

ofmoments that refresh.

With 60% of the population in our territories

over 25 years old, Adult Sparkling meets the

needs of a wide range of consumers. And, with

50% current value share in bitter mixers, we see

significant headroom to grow our market share.

We are addressing premiumisation

opportunitiesby:

• developing a super-premium segment

inSparkling Soft Drinks

• driving the mix towards glass and

single-serve beverages

• accelerating growth in the

HoReCachannel

My vision is to focus on

cocktails and mixers,

with bigger margins

compared with beer

and wine. I was looking

for a partner to offer a

full-bundle portfolio of

brands that are relevant

for my bar, and having

oneperson to discuss

my business with. This

is where CCH came in.”

Dominik Bacvardi,

Owner and bartender,

Peaches&Cream bar, Zagreb

In HoReCa, one of the

key success factors

is to truly understand

thedifferent needs of

our stakeholders.”

Kruno Rozic,

Premium Spirits

marketingmanager

The right brand

The right package

The right channel

Opening up

Theright moment

Growth pillars continued

Leverage our unique 24/7 portfolio

What’s the growth

opportunity?

Opening up the right moment with premiumised,

tailor-made and experiential solutions for bars

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 29

Watch the video online

Growth pillars continued

Leverage our unique 24/7 portfolio

Premium segment

Super-premium segment

Kinley

Early evening ‘self

love’ for young adults

seekingjoy!

~1 x

Coke

TM1

price

Lurisia

For confident and

assured adults who

enjoy embodying

statusand letting

others know it!

~ 3 x

Coke

TM1

price

Schweppes

Finding fun any

evening of the week...

for social explorers

~1.2 x

Coke

TM1

price

Three Cents

Made by bartenders

forbartenders...

forslightly older

adults in search of top

quality with artisanal

craftsmanship

~2.5

–4 x

Coke

TM1

price

We are complementing well-

established brands like Schweppes

and Kinley, with new ones like Lurisia

and Three Cents.

The work we are doing on mixability – the

combination of alcoholic beverages with

sparkling drinks – is critical here and we are

promoting Adult Sparkling both out-of-home

(leveraging our great HoReCa relationships)

and at-home.

The Adult Sparkling soft drinks

opportunity is massive”

Elaine Bowers Coventry

Chief Customer and Commercial Officer,

TCCC.

1. Coke™ price is Coke Trademark price

Watch this Adult Sparkling growth

accelerator video from our breakout

sessionat our investor day.

Adult Sparkling: a ‘big bet’ andgrowth accelerator continued

Higher

revenue-per-case than

Groupaverage.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 30

Growth pillars continued

Leverage our unique 24/7 portfolio

Waking up to 360

Coffeecapability

It seems there is no end to consumer demand for good coffee. With

our impressive track record, route to market and coffee capability

development, we are well positioned to win. Coffee is core to our 24/7

strategy, with organic revenue up 37.5 % in 2023 versus the previous

yearand market share continuing to grow.

• Double the revenue per case versus Sparkling.

• Coffee strengthens our 24/7 beverage

partner status across all sales channels.

• It allows us to accelerate our direct-to-

consumer business such as vending.

• Coffee enables increased penetration of

ournon-alcoholic beverage portfolio at work.

• Coffee accounts for approximately 65% of

consumer spending atwork.

€32b

estimate of industry market value in 2023¹

€10b

estimate of distributor value in 2023¹

Our COSTA and Caffè Vergnano brands are

wellpositioned to meet more diverse consumer

and customer preferences in premium and

mass premium segments. Caffè Vergnano is

targeted towards high-end HoReCa locations

and those looking to offer the authentic Italian

espresso experience. COSTA is targeted

towards younger, more modern locations

andisour priority brandfor on-the-go and

self-serve occasions, suchas work.

1. Source: internal system projections, excluding Russia and Ukraine.

What’s the growth

opportunity?

Opening up the right momentfor

premiumand mass premium segments

Mass premium

Premium

~30%

~30-40%

5-10%

25-35%

Mass

Value

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 31

Watch the video online

Growth pillars continued

Leverage our unique 24/7 portfolio

Waking up to 360° Coffeecapability continued

Growth in Coffee is

underpinned by continued

investment in key growth

enablers. This includes building

a professional team led by

world-class coffee experts

and providing a dedicated

Coffee Academy. Customers

benefit from onsite training

and business development,

supported by commercial

insights driven by our DIA tools

and real-time telemetrics.

Building 360°

Coffee capability

Our head of Coffee,

Prodromos Nikolaidis,

shares the growth

potential in this category

from the breakout session

at our investor day

Coffee

Academy

In less than two years, we’ve

trainedhundreds of colleagues

withtailored learning paths per role.

Coffee

Experts

14 in-house coffee

experts-trained, certified

baristas who work

directly for us as full-time

employees, including one

world-champion barista!

DIA

-enabled

segmentation

Wecombine data from our business

developers on field visits with data from

our own coffee machines via telemetry

with external data sources to drive

personalised customer segmentation,

generating competitive advantage,

especially in the out-of-home channel.

You can read more about personalised

customer segmentation andexecution

across our business onpage39.

1. DIA: Data, Insights & Analytics

Telemetry

100% of our medium and large coffee

machines are connected, transmitting

real-time data on sales, quality and

technical key business indicators

throughreports and scheduled alerts.

Customer

training

All our customers’ baristi in HoReCa

are trained on how to use our coffee

machines and given full training

onour coffees.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 32

Win in the

marketplace

Growth pillars

Win in the

marketplace

Win in the

Growth pillars

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 33

Win in the marketplace

2023 highlights

• Scaled segmented execution

sothatallmarkets benefit from

advanced micro-segmentation

• Expanded revenue per case while

delivering market share gains, with

appropriate price increases and

miximprovements

• Continued digital transformation

withthe introduction of a next-

generation customer relationship

management system

KPIs

• Organic revenue growth

• Organic revenue per case growth

• Volume growth

Principal risks and opportunities

• Foreign exchange fluctuations

• Marketplace economic conditions

• Geopolitical and security environment

• Competing in the digital marketplace

• Suppliers and sustainable sourcing

• Cyber incidents

• Sustainable packaging

Material topics

• Socio-economic impact

• Packaging and waste management

• Climate change

• Food loss and waste

Stakeholders

Bespoke capabilities with

exceptional people

Our second growth pillar, win in

themarketplace, encapsulates

howwe drive profitable revenue

growth and anticipate or react to new

challenges faster and smarter than our

competition. Two elements underpin

this pillar: our bespoke capabilities,

which are critical for us to better

understand the real and changing needs

of both customers and consumers; and

our talented salespeople, or business

developers, who establish long-lasting

winning partnerships withcustomers.

Our customers range from global supermarket

brands and independent convenience stores to

restaurants and e-retailers. Understanding the

needs of these customers and their relationship

with consumers is critical to our success.

Targeting personalised execution for every outlet

requires capabilities in data, insights & analytics

(DIA), revenue growth management (RGM) and

route to market (RTM). In 2023, we continued to

invest in these bespoke capabilities, particularly

DIA and digital commerce, enhancing tools that

allow us to deliver best-in-class RGM, RTM and

customer management.

The power of our 24/7 portfolio and consistent

investment in our capabilities has allowed us

to make informed pricing decisions and offer

a personalised mix of categories and package

formats to customers. This data-driven approach

has resulted in another year of strong revenue per

case expansion and profit growth, enabling us to

drive a further 110bps of value share expansion

in NARTD in 2023, and an 80bps improvement

invalue share expansion in Sparkling.

We have adapted our ways of working,

strengthened our supply chains, and proven

thedepth and breadth of our capabilities. This

is particularly the case for RGM, where we have

delivered robust price and mix improvements in

the face of significant commodity inflation and,

more recently, energy cost rises. We have been

laser-focused and clear on the decisions we are

making and what we expect these decisions

toachieve.

Our investors

The Coca-Cola Company

Our consumers

Our customers

Read more p88 to 107

Read more p15 to 39

Growth pillars continued

Win in the marketplace

2023 highlights

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 34

Growth pillars continued

Win in the marketplace

I am so excited by the progress

we have made in our bespoke

capabilities, enabling a step change in

our ability to win in the marketplace.

It is the interconnection of

route tomarket, data, insights

& analytics, and revenue growth

management, together with digital

commerce, customer management

and talent development, our

lighthouse capability, which allows

us to personalise execution for

everyoutlet.”

Naya Kalogeraki

Chief Operating Officer

At our investor day in May, we shared how our capabilities are driving

personalised execution for every outlet.

The six key capabilities are:

Revenue growth

management

Industry-leading RGM enables

us to drive smart affordability

and premiumisation

Data, insights

&analytics

Our investment in data,

insights & analytics allows

usto drive revenue faster

andoptimise smarter

Route to market

We have more customer

interactions than ever before

due to our physical and digital

route to market

Talent

development

Investing in our people and

their development remains

our ‘lighthouse’ capability

Customer management

Joint value creation is at the

heart of customer partnership.

Digital commerce

Key growth driver to equip

ourbusiness for the future.

Route-to-customer through eB2B

Route-to-consumer through

e-retail and delivery apps

Execution

Excellence

for every

outlet

Targeting personalised execution for every outlet

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 35

Growth pillars continued

Win in the marketplace

Our bespoke capabilities

At our investor day in May, we shared how

our capabilities are driving personalised

execution for every outlet. Over the

next three pages, we describe these

six capabilities in detail, starting with

customer management at the bottom

right-hand side, and working anti-

clockwise round the wheel on page 35.

Customer management

We are committed to creating value jointly with

our customers and this is at the heart of our

successful partnerships. Through our joint value

creation strategies, we were once again the

leading contributor to revenue growth in fast-

moving consumer goods (FMCG) across our

retail customers, according to market researcher

Nielsen. Innovations such as our new next-

generation customer relationship management

(CRM) system support such success. The new

system was rolled out in 18 markets during the

year, strengthening our customer management

capabilities that are directly linked to growing

customer revenue. As well as supporting our

core business, this has enabled us to accelerate

our performance in new categories such as

Coffee and Premium Spirits, as the system is

ableto consolidate customer leads efficiently and

accurately for our sales team. Providing a stronger

digital tool for communication drives better

service and is another way for our salespeople to

spend more time with our customers and provide

them with data-driven analytics and insights.

We are committed to measuring and improving

customer experience using the Net Promoter

Score® metric applied through CustomerGauge

‘voice of customer’ software, which enables

instantfeedback from customers.

When a customer has an issue, the target for

our sales teams is to ‘close the loop’ and resolve

issues within 48 hours. In 2023, 83% of cases

were resolved in 48 hours, upfrom 66% in 2022.

Thistool is now live in all our markets, with

55% ofourcustomers providing feedback on

ourperformance.

We continue to support our customers through

challenging periods of cost inflation and other

economic pressures by offering a diverse portfolio

and investing in engaging and relevant brand

campaigns. This helped our customers generate

top-line growth, whilst satisfying their shopper

and customer needs. For example, at-home and

out-of-home channels both delivered positive

revenue growth in 2023, with more digital and

physical at-home solutions and a widerout-of-

home portfolio offering.

Digital commerce

In 2023, we significantly invested in our digital

commerce platforms and solutions, as part of

our digital journey to enhance our capabilities

using data-driven strategies and efficient online

business platforms for growing revenue. Our

collaboration with e-retailers and food delivery

platforms to create unique omnichannel

consumer experiences further intensified. Our

strong online execution capabilities, with a focus

on digital shelf execution and data-driven shopper

activation, led to strong double-digit revenue

growth online and growth in online market share.

Onfood delivery platforms, we aim to sell a drink

with ameal and this ‘beverage attachment’ rate

improved slightly to 26% (excluding Russia).

Our Customer Portal e-business-to-business

(eB2B) platform saw further growth. Our focus

wason driving incremental revenue and expanding

the omnichannel service tools. We enhanced

Customer Portal’s reach and efficiency, which

drove an increase in customer orders and revenue,

particularly in small non-chain stores. It is now

the main order-taking channel, representing

10% of orders made, more than doubling the

share of orders in 2022. Meanwhile, we scaled

our business-to-business digital marketing

capabilities, launching automated customer

engagement journeys and piloting generative

AI-powered marketing campaigns withpromising

first results – all using the size, scale and user

friendliness of Customer Portal.

Sirvis, our 24/7 multi-category, eB2B aggregator

ordering platform for indirect route to market, was

rolled out to more regions in Italy, and we prepared

for expansion into three more countries for 2024.

The platform connects out-of-home outlets to

wholesale suppliers of goods, as well as service

providers of relevant services. We continued

topilot direct-to-consumer platforms, including

Home Delivery in Egypt.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 36

Growth pillars continued

Win in the marketplace

Data, insights & analytics

DIA is one of our prioritised growth capabilities

and we see this as a competitive advantage.

Everything we do in this space, primarily through

prioritised use cases, is done with the customer

inmind and tostrengthen our RGM and RTM.

2023 was a pivotal year for the implementation of

DIA capabilities. We stepped up our analytics and

AI usage, with the ambition to become an industry

leader and to set a global benchmark in these

capabilities. We have four prioritised use cases:

Segmented execution

In 2023, we scaled segmented execution so that

all markets, including Egypt, now have advanced

micro segmentation, the ability to predict the

potential value of a single outlet from a single

product category – see an example from Nigeria

in our feature on page 39 and in the video from

our investor day, link also on page 39. We also

launched the next generation of segmented

execution, which provides new capabilities

that personalise what we sell, personalises

how weserve and execute with ourcustomers,

andenables us to make strategicand

profitableinvestments.

Promotion spend effectiveness

In 2023, wecontinued to increase our use of

advanced analytics algorithms to improve the

return on promotion investments, as well as

improve demand forecasting. The algorithms

mean we can measure the effectiveness of

everyEuro of promotional spend, allowing us

to ‘course-correct’ and allocate investment to

higher return promotions. We have automated

these algorithms so that we run promotion

management measurement each quarter to be

agile in taking actions, rather than having annual

plans, as well as leveraging the insights to drive

joint value creation with our customers.

Demand forecasting

We continued to develop our AI-enabled

forecasting for short- and long-term demand for

our products. In Romania, for example, we saw

a 10% improvement in our demand forecasting

after putting these AI tools in place.

Improving retention of our businessdevelopers

This gives us valuable insights into how to reduce

churn and haveconsistency and longer tenure

withbetter performance.

Our sales teams – and colleagues in wider

functions – continue to benefit significantly

from the Data and Analytics Academy. It is

accelerating the culture of data-driven decision

making, enabling us to upskill our colleagues. We

now have over 1,200 colleagues involved in DIA

academy courses. New for 2023 was a module on

generative AI, which we introduced to equip our

colleagues with the very latest skills to impove

data literacy.

Revenue growth management

In 2023, we leveraged our RGM capabilities

to implement price increases across all

our markets, as well as drive mix increases,

balancingpremiumisation and affordability

inahighly inflationary environment.

Enhanced data and analytics tools have allowed

us to adapt to ever-changing price elasticities,

making decisions that protect consumption and

our competitive position. Our proactiveness and

agility in adapting price moves or promotional

strategies to the marketplace and the competitive

landscape have been critical to deliver revenue

growth from both pricing and mix, while growing

market share.

Ongoing high inflation reinforced our long-

standing focus on improving affordability.

Welaunched new affordable pack formats in the

Czech Republic and Slovakia where we replaced

1.75 litre with 1.5 litre and 2.25 litre with 2 litre

formats. We expanded affordable offerings

in a segmented way, aiming at channels and

regions most relevant to the target consumer.

For example, in Egypt we scaled our returnable

glass bottle offerings and 300ml PET, leveraging

segmentation based on consumer disposable

income. We continued the expansion of300ml

PET in Bulgaria and we expanded our 350ml

returnable glass bottle offering in Nigeria.

Promotions are another important part of

affordability. In 2023, we used data and insights

to improve return on investment, offer more

value-add promotions and focus on profitability.

This helped to maximise returns for us and our

customers. Premiumisation remains relevant for

certain consumer segments, and we continued

toincrease our range of premium packs – in

Austria launching a 400ml glass bottle and

expanding our 1 litre glass bottle into flavours.

Wealso increased our focus on premium multi-

packs of mini cans in our Established markets.

Ourfocus on single-serve packs increased

at-home channel sales. Dueto our ongoing

focusonHoReCa, we improved the percentage

ofsales from the out-of-home channelin Europe.

We have more customer interaction than before

duetoourphysical and digital route to market

Sales force Coolers New tools

15,000

salespeople

1.4 million

coolers

Image recognition in 27

countries, with 350,000

outlets covered

1.8 million

customers

90%

coverage in high-

potential outlets

New dynamic routing

tool to optimise

salespeople travel time

67%

of stores visited directly

1.0 million

coolers are connected,

improving data

collection from the field

>30%

of our indirect

distribution partners

connected through

CCHintegration tool

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 37

Priorities in 2024

• Deliver continuous improvements to

joint value creation with customers and

customer experience

• Accelerate digital commerce, leveraging

the scale of Customer Portal and

expanding Sirvis

• Enhance our competitive advantage from

segmented execution insights, particularly

in the HoReCa channel, as well as leverage

insights from promotion analytics

• Continue to implement our revenue growth

management strategies, addressing both

affordability and premiumisation, with an

increased focus on mix initiatives

• Continue to improve our physical and

digitalroute-to-market coverage with

enhanced digital and technology tools

andupgraded capabilities

UN Sustainable

Development Goals

As we build our business by helping our

customers to grow and thrive, we make

substantial contributions to the achievement

ofthe Sustainable Development Goals

related to ending poverty, decent work,

sustainable communities, responsible

production, justice and strong institutions,

aswell as partnerships.

Growth pillars continued

Win in the marketplace

1. Excluding Russia, Egypt, Ukraine, Moldova and Armenia.

Route to market

We have a vast route to market. Each day,

around15,000 business developers in sales

teams across our countries service two million

customers – in fact, we have more customer

interactions than ever before due to our

physical and digital RTM. And, with 1.4 million

coolers (refrigerators) owned on our customers’

premises, we have multiple RTM models with

different sales force roles, different last-mile

models anddifferent execution strategies. A

24/7 dynamicsales and distribution model seeks

tomaximise profitable growth through data-

driven execution excellence. We are constantly

upgrading our physical RTM fundamentals to

adapt to the digital transformation, and we are

incorporating data andanalytics to make it even

more efficient.

We continue to invest in new coolers as they

helpto drive single-serve mix and revenue

growth.Weincreased the number of coolers

by9,300

in 2023, led by Italy, to a total of

1.4million coolers on customer premises.

Morethanhalf now have online connections,

up6pp, which improves their profitability by

providing volume data for better execution.

We have focused on using data to increase our

profitable cooler coverage and in 2023 reached

90%

coverage of our top customer outlets.

Wealso continued upgrading our physical RTM

toadapt to the digital transformation and we

nowhave 91,000 active digital customers,

up46%from2022.

Image recognition tools are now operational

in most of our markets. These tools help us

understand in a precise and efficient way the

quality of our execution at the point of sale, and

to drive the needed corrective actions. We are

also supporting our indirect distribution partners

by connecting them through a bespoke CCH

integration tool. Finally, we are expanding our

digital coverage enabled by our eB2B platforms.

In 2023, we expanded our physical coverage

ofoutlets to support our out-of-home channel

development. We increased our sales force in

Italy, Croatia, Czech Republic and Slovakia and as

aresult we now visit two-thirds of our customers

in person. We are enhancing our physical coverage

by using dynamic routing tools, which optimise

travel times and allow our sales force to spend

more time with customers. It is this combination

of in-person visits with data-driven insights and

digital execution that is the foundation of our

RTMsuccess.

Watch the video online

In this lively video, you can

see a day in the life of a

business developer

Talent development

Investing in our people and their development

remains our ‘lighthouse capability’. We aim

to make our company an irresistible place to

work – where our employees feel heard, valued,

supported and motivated to realise their full

potential. We strive to ensure that we recruit

and retain the best talent, providing unique and

personalised development as a reason to join,

grow, stay and best serve our customers. We

have numerous development tools in place like

fast-track development programmes for our

high-potential colleagues. We develop critical

sales and supply chain capabilities by offering a

suite of academies, and our learning culture is

embedded by making learning accessible through

technology-enabled solutions. You can read more

abour our talent development in Cultivate the

potential of our people on page 45.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 38

Watch the video online

Growth pillars continued

Win in the marketplace

Personalisation depends on data,

insights & analytics

From years of experience, we know there is no one-size-fits-all when it comes

tobeverage preferences. We aim for personalised execution for every outlet

andcapabilities in data, insights and analytics are critical to delivering this.

What’s the growth

opportunity?

Integrated intelligence across

allchannels.

Irrespective of the channel, we offer

personailsed and relevant assortment

recommendations in every customer touch

point in all our markets on a weekly basis:

• Suggested orders for business developers

when they visit the customer and they

place an order in person

• Smart orders in Customer Portal – online

portal where customers can order 24/7

• Suggested orders for Call centre when the

customer calls in to place an order

Opening up moments

forpersonalisation

For example in Nigeria...

• Algorithms help find the right product

intheright pack size at the right time.

• We bring intelligence that sophisticated

retailers have to our more than 200,000

fragmented customers (traditional ‘mom

and pop’ stores), segmenting them into

80microsegments.

• Customer-centric order taking:

thealgorithmsees highest potential for

Premium SSDs and Energy drinks. It suggests

Coke and Monster and sees similar outlets are

successful with Predator, so it adds Predator.

Algorithms help generate

outlet-specific insights for

personalisation. Data-enabled

insights power our active

two million customer base in

Hellenicacross all our markets.”

Ruchika Sachdeva

Head of Data, Insights & Analytics

Our head of DIA, Ruchika Sachdeva,

shares how data, analytics and

insight are a growth acceletor in the

breakout session at our investor day

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 39

Fuel growth

through

competitiveness

and investment

Growth pillars

Fuel growth

through

competitiveness

and investment

through

Growth pillars

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 40

Fuel growth through competitiveness

and investment

2023 highlights

• Added seven new production lines and

invested €11 million in rPET in Romania

• Fast-forwarded transition to paper-

based secondary packaging through

effective supplier partnerships

• Achieved target of 50% energy-

efficient, connected coolers ahead

ofschedule

KPIs

• Organic EBIT growth

• Comparable EBIT

• Comparable EBIT margin

• Capex as % of NSR

• ROIC

Principal risks and opportunities

• Marketplace economic conditions

• Competing in the digital marketplace

• Suppliers and sustainable sourcing

• Cyber incidents

• Sustainable packaging

• Water availability and usage

• Managing our carbon footprint

Material topics

• Sustainable sourcing

• Socio-economic impact

• Climate change

• Water stewardship

• Packaging and waste management

Stakeholders

Investing for growth

Our ability to win in the marketplace

and to leverage our 24/7 portfolio is

down to continuous strengthening of

our customer and supplier partnerships,

and investment: investment in capacity;

investment in sustainability; investment

in digital, data and technology and

investment in critical, value-creating

capabilities (read more in Win in

theMarketplace on pages 33 to 39).

Investing in capacity to support

our24/7portfolio

We have a broad footprint of 62 production plants,

of which five are mega-plants, across 29 countries

(no change from 2022), with five production

plants in Egypt now fully integrated following the

acquisition of the business in 2022. We added

seven new production lines, ranging from our

new PET line in Hungary to new glass and can

lines in Nigeria. Youcan read more about our new

resealable RGB line in Austria on page 62.

We have invested heavily in our partnership

withMonster Energy, as Energy continues to

beone of the fastest-growing categories in

NARTD beverages.

In 2023, we added three additional Monster

canning lines: one each in Ireland and Poland,

which were commissioned in2023; and a line

inItaly that will be commissioned in 2024,

bringingour total to eight Monster lines

acrossfivecountries.

We continued our investment in coolers, or

refrigerators, at customer premises in support

ofour revenue growth management strategy

andsustainability goals – see pages 43 and 44.

Investing in sustainability

asagrowthenabler

Our approach to sustainability is doing what

is right, while creating value for the business

and strengthening resilience. For example,

we have reduced energy use by 30% between

2010 and 2023, making asignificant impact on

emissions reductions, but also realising more

than€50million (gross) in energy cost savings.

On packaging, we have invested more than €50

million in three in-house recycled plastic (rPET)

production units in Italy, Poland and Romania over

the last two years, with €11 million invested in the

Romania plant alone in 2023. These investments

reflect our commitment to a circular economy,

while allowing us to decrease the cost of buying

rPET fromoutside and enhancing our security

ofsupply ina tight market.

We continually scan the market to assess

supplier capabilities and use strategic partner

relationships, for example, to increase Post

Consumer Recycled (PCR) content, reduce shrink

and stretch film thickness (down-gauging) to

minimise material consumption and develop close

loop, circular solutions. In 2023, we implemented

multiple down-gauging shrink film initiatives

intheCzech Republic, Northern Ireland and

Hungary, resulting incostsavings and reduction

ofCO

emissions.

We continue innovating in glass and paper

–investing €12 million in Austria on a new energy-

andwater-efficient returnable glass bottle line

for our 1 litre ‘universal bottle’ format, while

introducing anew 400ml resealable, reusable glass

bottle, andlaunching a paper-based alternative

toplastic shrink film for 1.5 litre PET multipacks.

Our investors

Our suppiers

Our customers

Fuel growth through competitiveness

and investment

2023 highlights

Read more p88 to 107

Read more p42 to 44

Growth pillars continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 41

Growth pillars continued

Fuel growth through competitiveness and investment

We successfully continued with the paper-

based holder for smaller multipacks, Keel Clip™,

implemented in Hungary, Greece, Italy, Poland,

Romania, Northern Ireland and Austria, while we

started to look into how to further optimise the

solution to reduce material usage and minimise

emissions. Specifically, in Italy we piloted six packs

of 150ml with a down-gauged carton format.

Results were encouraging, so we plan to develop

the commercial solution and introduce tothe

broader market in 2024.

Also in secondary packaging, we concluded an

assessment related to the introduction of low-

density film in Biaxially Oriented Polypropylene

(BOPP) labels instead of standard plastic labels.

Following this assessment, we expect to roll out

BOPP labels in 2024, and anticipate reducing

plastic in labels by 12%, saving around 240 tonnes

of material and 600 tonnes of CO

emissions

annually. In 2023, we successfully piloted smaller

labels in 1 litre upwards multi-serve packs in

Greece, Cyprus, Poland and Italy, and we are now

planning the roll out of shorter labels across the

Company in 2024. This will result in CO

emissions

reduction by approximately 550 tonnes.

Water remains one of our key strategic priorities.

By using innovative technologies, such as water-

free cleaners for our new can lines in Greece

andPoland, we are targeting a 20% reduction

inwater consumption by 2025 compared with

2017in water risk areas. You can read more about

our investments and achievements in water on

pages 61 to 62.

A paper-based alternative

to shrink film for 1.5 litre

bottles was three years in

themaking

CCH Austria, paper producer Mondi and

machine manufacturer Krones partnered to

create an innovative, high-strength, paper

sleeve, ‘Hug-IT’, that tightly wraps and secures

six 1.5 litre bottle bundles of Coke, Fanta,

Spriteand Mezzo Mix during transit.

Hug-IT replaces existing plastic shrink wrap,

using paper made from FSC® certified

responsibly sourced fibres, as a more

sustainable solution. Hug-IT has taken three

years to come to fruition, from conception

through to planning, trialling, and finally getting

the product onto the shelf. Expert teams from

the three companies worked closely together

tomeet the challenges of aesthetics, strength

and stretchability of the paper solution.

Our suppliers are important partners in

sustainability. We monitor the performance

of oursignificant suppliers through our annual

internal assessments, third-party audits of

compliance, the EcoVadis IQ Plus Tool and

EcoVadis Risk Assessment platform. EcoVadis

helps us monitor, assess and benchmark a

range of risks using 21 criteria from international

standard setters and is our common ESG

assessment platform across the Coca-Cola

System, where we exchange information on the

ESG performance of our common suppliers.

We are also investigating how to further extend

risk assessment in our supply base, leveraging

new tools, Artificial Intelligence and customised

alerts, giving our strategic procurement team

faster access to critical events and information

affectingour supply chain.

We recognise supplier certifications, as per

international standards including ISO 9001, ISO

14001, ISO 50001, FSSC 22000 and ISO 45001.

For agricultural commodities, we recognise

the Rainforest Alliance, Fair Trade, Bonsucro,

the Sustainable Agriculture Initiative Platform

Farm Sustainability Assessment and Global

GAP+GRASP. All long-term contractors and

contracted services on site are assessed

on human rights through workplace audits,

whichhavea three-year cycle.

Watch the video online

In this short video, Anna Erniša,

Chief‘Hug’ Officer at Mondi, describes

thestory of ‘Hug-IT’ and the many

openup moments on the project

The careful use of resources and

recyclable materials is an important

pillar in our sustainability strategy and

plays a central role in the design of the

sustainable packaging mix for the

Austrian market. With the introduction

of our new solution, which is unique

in the world to date, we will be able to

reduce material use by around 200

tonnes of plastic per year. It was a

pleasure to work with Mondi and our

other partners in jointly contributing

to a circular economy.”

Felix Sprenger

Supply Chain Director, CCH Austria

Our approach is ‘paper where

possible, plastic when useful’ – and

replacing the plastic shrink wrap used

for bundling bottles provides the ideal

opportunity to put that into practice.

By producing a strong paper,

we are able to replicate what the

plastic shrink wrap does, delivering

secure and safe transportation of

multipacks with our Hug-IT paper

sleeves that reduce plastic use.”

Silvia Hanzelova

Sales Director Speciality Kraft Paper, Mondi

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 42

Watch the video online

Growth pillars continued

Fuel growth through competitiveness and investment

Investing in digital, data

andtechnology

Fuelling our growth requires investment behind

digital technology and new business models,

blended with our continuous focus on productivity

and efficiency improvement initiatives. In 2023,we

appointed a dedicated head of our DigitalFactoryto

focus on embedding digital throughout thebusiness.

We consider three ‘buckets’ when investing in digital,

data and technology: consumer and customer

centricity (read more in ‘Win in the marketplace’

onpages 33 to 39); employee experience

(readmorein‘Cultivate the potential of our people’

onpages 45to 51); and operational productivity.

Consumer and customer centricity

We achieved several milestones in customer

centricity in 2023, including:

• Connected coolers: passed the 1 million

‘connected coolers’ milestone, meaning that

we are continually increasing and improving

thedata we obtain from the field

• Image recognition: processing over

1.5millionproduct execution images every

month, continuing to free up business

developers to spend more time with

customersand improving revenue per outlet

• DIA using machine learning for

personalisedexecution: 57% of customer

visits had outlet-specific suggested orders

recommended by business developers

• Dynamic routing: 11% market coverage

usingalgorithm-based routing for deliveries

in first year of deployment, with target of

34%coverage for 2024

Employee experience

To achieve best-in-class employee experience,

wehave designed and tested ‘WorkDay’ as

a newcore HR system to improve internal

productivity, with the target of saving many

hoursfor colleagues to use in higher value-

addactivities. During 2024, we will deploy

thesolution throughout the business.

During 2023, we selected Microsoft Viva to

host our new intranet platform for internal

communication, and we will design and deploy

thenew intranet inearly 2024.

We also started toresearch the new-generation

digital assistants. Using Microsoft Copilot,we

areevaluating technology and persona-based

needs as part ofour generative AI in the

workplaceplans.

Operational productivity

We are continually investing in improving our

operational productivity, reducing changeover

times between flavours, optimising washing

procedures, developing our predictive

maintenance routines and managing

complexity ofproduction.

Managing complexity is key as we expand our

flavour ranges and expand our lines, and we

launched a Digital Twin pilot project in Edelstal,

Austria, to explore how to make both financial

and sustainability savings as the manufacturing

process becomes more complex.

Other examples of where we are using digital

include 250 manufacturing practices shared

through our internal software platform

‘WeKnow’, enabling best practice and learnings

to be shared across the organisation.

Wehave also implemented a new digital

application to support plant operators’

personal development and capabilities, and in

particular their ability to embrace technological

developments, in our connected worker platform.

We also organised a two-day innovation event

witha wide range of suppliers to remain up to

datewith technological developments.

Operational productivity:

line performance

optimisation

Managing complexity through

flexibility and adaptability

through increasedcomplexity

Evolving maintenance

strategy to reduce bottling

linedowntime

Developing people

capability hand in hand with

technologydevelopment

Improving performance

management using

digital tools

Our digital team describes how digital

isenabling growth in this breakout session

video from our investor day.

Our Digital Factory journey

so far

The Digital Factory addresses all three

buckets of our digital, data and technology

strategy. In2023, we created a dedicated

‘Head of Digital Factory’ role to recognise

the importance of investing in our digital

innovation and capabilities.

We launched our own Digital Factory

to accelerate bringing new ideas and

solutions to the market and bridging

the gap between innovation and scale

Set up our first two dynamic pods for

Employee Experience andDigital

Commerce and recruited our first

team member to drive our User

Experience (UX) capability

Kicked off a pilot in Hungary to trial a

new sales delivery model. Supported

the relaunch of the direct-to-

consumer model in Switzerland

Worked in partnership with Microsoft

to build a GenAI powered prototype

of Sales Academy in the metaverse

and showcased it at the Cairo

Leadership Conference

Appointed a new dedicated Head

of Digital Factory and upscaled the

digital factory to take more ideas

forward in 2023

and sustainability savings as the manufacturing

We launched our own

to accelerate bringing new ideas and

solutions to the market and bridging

the gap between innovation and scale

’21

developments, in our connected worker platform.

Kicked off a pilot in Hungary to trial a

new

the relaunch of the

consumer

’22

particular their ability to embrace technological

Set up our first two

Employee Experience

Commerce

team member to drive our

Experience (UX)

’22

Worked in partnership with Microsoft

to build a GenAI powered prototype

and showcased it at the Cairo

Leadership Conference

’23

Appointed a

of Digital Factory

digital factory to take more ideas

forward in 2023

’23

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 43

Growth pillars continued

Fuel growth through competitiveness and investment

Priorities in 2024

• Commission an additional Monster canning

line inItaly

• Improved market coverage using

algorithm-based routing for deliveries

• Continue to improve our supply

chainefficiency

• Continue to improve the environmental

impact of our secondary packaging, for

example by rolling out BOPP labels

• Increase the impact of the Digital Factory

under a dedicated head, increasing the

number of pilots that become scaled

solutions in the business

UN Sustainable

Development Goals

Our sustained efforts to reduce our costs

and improve our impact have generated

significant results for our business, our

communities, society and the environment.

These results correspond to contributions to

the Sustainable Development Goals for clean

water and sanitation, clean energy, economic

growth, industry innovation, sustainable

communities, responsible production,

climate action, life below water and life

onland.

Strengthening our supplier

partnershipsand supply

chaineffectiveness

We consider our suppliers as critical partners,

contributing to the ongoing and sustainable

success of our business. Under a unified

procurement framework, we segment our

supplybase universe of around 15,000 parent

level supplier organisations into direct and

indirectspend suppliers, and a hierarchy

accordingto their importance. You can read

moreabout this and a full description of our

supply chain on our website (https://www.

coca-colahellenic.com/en/about-us/what-we-

do/supply-chain). Weplace significant focus

onforming partnerships with suppliers that have

supply points located within our countries, both

multinational and local, while also developing

strong local suppliers across our territories.

Theseefforts support our strategy for local

sourcing and contributing to socio-economic

development in the countries where we operate.

Our mission is to become the leading

supply chainfunction in our industry

interms of customer service and

cost efficiency. To achieve this,

we focus our efforts on keeping

our people engaged, excelling in

sustainability, reducing our costs

and building best-in-class customer

service andresponsiveness.”

Ivo Bjelis,

Chief Supply ChainOfficer

We have built a borderless supply chain to a large

extent that operates effectively and efficiently,

enabling us to embed innovative technologies

andrespond to customers and suppliers fast.

Weare innovating within our supply chain

to expand our technical capabilities, driving

productivity improvements and making cost,

energy and watersavings.

We are investing in technologies that optimise our

infrastructure and transform our existing plants

into efficient mega-plants, effectively serving a

country or an entire region.

Consumer and customer centricity

Enabling personalised

executionforevery outlet

1,000,000

connected coolers

continually increasing and improving

datacollection from the field

Employee experience

Make CCH a

fully digital

workplace

where employees feel heard, valued,

supportedand motivated to realise

theirfullpotential

Operational productivity

Deliver

stronger

resultsfaster

through data, technology and

insightsenabledprocesses and

decision making

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 44

Cultivate the

potential of

ourpeople

Cultivate the

Growth pillars

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 45

Cultivate the potential of our people

2023 highlights

• Kept our people safe during turbulent

geopolitical events

• Improved our engagement score,

confirming that we are embedding a

purpose-led culture and greater belief

in our efforts to simplify our business

• Helped our customers and our people

adapt to the changing external

environment with speed and agility

through new ways of working

• Continued to strengthen the diversity

of our workforce while building

aninclusive workplace

KPIs

• Employee engagement

• Percent of managers that are women

• Lost time accident rate

Principal risks and opportunities

• Geopolitical and security environment

• Health and safety

• People retention

Material topics

• Employee wellbeing and engagement

• Human rights, diversity and inclusion

Stakeholders

Strengthening our culture

We passionately believe that it is only

with the strength, competence and

engagement of our people that we will

achieve our vision and ambitious growth

agenda. Over the last year, wetook

time to reflect on our wider purpose

andculture, working with colleagues

from across the organisation to identify

a unifying purpose: to open up moments

that refresh us all.

The subsequent ‘Culture Story’ brought to life in

2023 is about all of us at Hellenic – who we are,

our purpose, vision, leadership model, values and

thebehaviours we commit to. It is a story that, for

the first time, was captured in a Culture Manifesto,

accessible to all as a booklet and serving as our

guiding star in all we do.

We unveiled the Culture Manifesto to senior

leaders at the annual Leadership Conference in

Cairo. Shortly afterwards, the story was cascaded

the same day across all our teams through

townhall sessions. Our people were further

engaged through culture labs to build acommon

understanding behind our purpose, values and

behaviours and to identify team and personal

commitments that bring our culture to life every

day. To address the needs of our employees,

we continued to deploy our bi-annual culture

and engagement survey, which looks at how we

are performing against our engagement and

committed values and behaviours. We scored

well on the values of ‘We over I’ and ‘Deliver

Sustainably’, with further work expected to ‘Make

itSimple’ so that colleagues can avoid time spent

on non-value-adding activities. We are taking this

feedback seriously, accelerating how we simplify

our processes and the way we work.

For example, Oxygen, our Group-wide initiative

to simplify and introduce smart ways of working,

has already freed up more than 633,000 hours

of colleague time. This is thanks to innovations

such as dynamic routing, piloted in Poland, which

is reducing travel time for sales teams visiting

customers by around a third, freeing up 10% of

their time. We are nowrolling dynamic routing

outto new markets.

With a new network of passionate ‘change

leaders’across the organisation, we look

forward to accelerating cultural progress in

2024, againstthe ultimate objective to put our

customers first, make it simple and open up

opportunities for growth.

Cultivate the potential of our people

2023 highlights

Read more p88 to 107

Read more p47 to 51

Growth pillars continued

Making culture real

throughstorytelling

Sharing stories from our diverse and talented

people from across our markets is one of the

best ways in which we can ensure colleagues

feel seen, heard, valued and connected to

each other – and to our culture.

Red Talks has been an effective platform to

enable this and in 2023, it proved to be a popular

way for colleagues to share personal and

professional experiences, ideas and insights

securely via their preferred channel – from

videos to live storytelling and presentations.

Meanwhile, Coffee Corner events were well

attended. These open, informal live chats

invite our storytellers to share on a range

of topics, from leadership and growth to

development and feedback. With 150-250

participants per session, Coffee Corner

events have sparked interest from across

theorganisation. All our people stories are

stored in the Red Talks Hub to be accessed

anytime, anywhere.

Our people

Our communities

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 46

Welcoming Egypt to the

Coca-Cola HBCfamily

Integrating over 5,600 new colleagues from

Egypt was a key focus during the year. The

Leadership Conference, hosted in the country,

was a strong starting point to align on culture

and ambitions, supported by the Culture

Manifesto and followed up by 11 roadshows

across the country. We also extended our

culture and engagement survey to Egypt,

with an impressive participation rate of 97%

and a sustainable engagement index score of

85%. We have identified further improvement

opportunities in connecting and collaborating

with our colleagues in Egypt, which we will

address through follow-up workshops.

We also rolled out in Egypt our annual

talent review programme and performance

management cycle, covering over 700 people

by the end of the year. Line manager labs

focused on talent acquisition, rewards and

policies, attended by over 500 colleagues.

Meanwhile, more than 1,500 end users and

1,200 as Business Developers and Sales

Team Leaders were trained, as our new SAP

system went live in the country.

Engagement and collaboration

Prior to our bi-annual culture and engagement

survey in September, a pulse survey in April already

showed improvement in five out of six strategic

areas: Strategic Priorities; Work-Life Balance;

Customer Centric Recognition; Simplification and

Retention. The culture and engagement survey

was updated to align with our new values and

leadership model. Record-breaking participation

(92%) and ahigh sustainable engagement

index score (86%) were headline achievements,

alongside ‘belief in our strategic priorities’ (88%),

‘feeling proud to be part of our Company’ (93%),

and ‘recommend the Company to others’ (87%).

We also saw a nine percentage points increase

in Business Developer retention scores vs 2022.

Our 2023 results were two percentage points

below the Qualtrics Global Top Decile Norm for

engagement and we will continue to benchmark

our performance against other high-performing

companies. We are also improving how we

collaborate across functions, which we measure

through the ‘collaborating for impact’ survey.

Wesaw participation nearly doubling, reaching

28,358 responses, and significant progress

incross-functional collaboration. Our internal

NPS score improved to 30 in November from

15in February. While we keep sight of the desired

behaviours we want to nurture, we are focusing

toaddress the opportunities on the biggest

drivers to create a tangible impact with our

frontliners andourcustomers.

Participation in our performance management

framework, ‘performance for growth’, reached an

all-time high of 97%. We refreshed the framework

as well, aligning it with our new values and

leadership model and emphasising simplification,

value-adding activities and prioritisation.

We also revisited feedback loops, introduced

colleague feedback processes, enhancing

collaboration across functions and borders.

This new feedback approach resulted in more

employees receiving individual feedback (67%

compared with 46% in 2022). This positive

evolution underscores our commitment to

cultivating a high-performance culture that

resonates with our workforce.

Employee turnover continued to fall, landing at

11.4% compared with 11.8% in 2022. Retention

remains a key priority and we prioritise exit

surveys, attractive remuneration and regular

dialogue through STAY conversations. We have

decreased the ratio of female managers leaving

compared with male counterparts, thanks in

part to focus groups that were held to better

understand the root causes of female turnover

and the action plansput in place.

86%

sustainable engagement

index score

88%

belief in our strategic priorities

93%

feeling proud to be part

of our Company

87%

recommend the Company

to others

Growth pillars continued

Cultivate the potential of our people

Supporting our people

inUkraine

We could not be prouder of the resilience,

collaboration and unity demonstrated by

our team in Ukraine as the country faced a

second year of war and uncertainty.

Their safety and wellbeing have remained our

utmost priority, while colleagues from around

the world have continued to give generously

– with monetary aid, time, awareness and

support. We also ran resilience webinars

and coaching sessions, townhall events and

engagement workshops, both on- and offline

to ensure our Ukraine colleagues feel involved

and supported by us all.

Our ‘women in sales’ community was created

to amplify learning and development for

female Ukrainian sales teams, while our ‘reskill

to win’ programme helped anyone having to

relocate within the country. We continued

working with local youth organisations,

providing hope and opportunity for those

starting their careers and we restarted the

Fast Forward development programme to

bring local talent together.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 47

Health and safety

The health and safety of our people is of

paramount importance for us, which is why

we keep focusing on improving systems and

initiatives, while engaging employees and

contractors. We enhanced our behaviour-

based safety programme by embedding

morehuman and operational principles across

manufacturing and non-manufacturing locations.

We have reached 97% programme coverage

in manufacturing, 96% in warehousing, 95% in

commercial (excluding Nigeria) and 56% in our

offices. By end of 2023, 2,168 employees and

740contractors were trained as behaviour-based

safety observers, and we eliminated 80.3% of

barriers to safety identified under this programme.

The programme was rolled out to three new

manufacturing locations in Egypt, where 47

observers were trained, and 831 behaviour-based

safety observations were conducted.

We are very happy to report zero employee

fatalities. However, with great regret there were

five contractor fatalities that happened on the

road and within our premises.

Out of three road accidents leading to a

contractor fatality, two werecaused by a public

driver. Unfortunately, one on-site fatality was

reported when a contractor’s truck assistant was

hit by a reversing truck and the other unfortunate

on-site incident happened during a forklift repair.

In both cases, we made a detailed root cause

analysis, took appropriate corrective actions and

shared the lessons learned across all our countries

with mandatory preventative actions to be put

in place. Our Employee Lost Time Accident Rate

(LTAR) was0.27, a 23% improvement versus 2022.

The Contractors’ Lost Time Incident Frequency

rate (LTIFR) improved by 9%. In compliance with

TCCC’s Life Saving Rules (LSR), we conducted

quarterly assessments of all manufacturing and

non-manufacturing facilities, achieving 84.7%

compliance (excluding Russia). Based on these

assessments, each country has developed its

owncorrective actions to address critical gaps

andachieve full compliance.

Keeping in place our established fleet safety

programmes, together with special attention

on vehicle safety, we can report another year of

continuous improvement in reducing accidents

per million kilometres, achieving 1.63.

To maintain health and safety momentum,

weconducted two engagement campaigns on

increasing the safety awareness. One of them

was linked to World Safety Day in April: “See, Say,

Do something – Save a life. Stay safe for what you

love.” The second campaign in October addressed

safety awareness before the winter season and

was a continuation titled “Stay Safe for what

you love!” We also launched a health and safety

observation toolkit as an app-based resource

for all colleagues to observe and report hazards

or unsafe behaviours and to encourage safety

conversations. Despite positive progress in our

LTAR Mission 2025 commitments, we seek to

accelerate it by working with selected business

units with higher LTARs and engaging their

leadership teams. We will also continue optimising

our behaviour-based safety programme and

strengthen the safety culture and behaviour

ofouremployees and contractors.

Wellbeing and reward

We continue our commitment to fostering a

workplace culture that prioritises and supports

the wellbeing of our people. A dedicated wellbeing

framework, centred around physical, mental,

financial and social wellbeing, has been crucial

to nurturing a healthy and resilient workforce.

In2023, alongside continued wellbeing initiatives,

we organised a session focused on resilience

and stress management led by a professional

counsellor from our Employee Assistance

Programme. Amid high inflation in many of our

operating countries, we prioritised financial

wellbeing, including conducting a session with

valuable insights and strategies to manage

financial pressures.

We automated our rewards processes by

implementing the Beqom platform for annual

increases in four business units. Following very

positive user feedback, we also developed a

management incentive plan (MIP) module and

deployed digitalised processes to more business

units, now numbering eight, with the expectation

to run our annual increases and MIP in almost all

business units on the platform in 2024. Preparing

to launch a new workforce administration system,

Workday, in 2024, we have doubled down on

increasing the quality of data management, which

will be a critical enabler in a consistent and better

employee experience, supported by simplified,

standardised and automated HR administration.

Growth pillars continued

Cultivate the potential of our people

Accidents per million kilometres

2013 202320222021202020192017 20182016201520142012

1.63

1.69

2.02

2.2

2.63

3.66

3.92

4.22

4.96

5.4

7.64

8.93

Continuous improvement in

reducingaccidents

reduction in accidents per

million kilometres in 2023,

from 1.69 to 1.63

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 48

Growth pillars continued

Cultivate the potential of our people

Diversity and inclusion

We maintained our commitment to diversity

and inclusion, executing actions as part of our

business plans and monitoring our progress

closely. A consistent, continuous focus on

recruitment, talent and retention has improved

gender diversity at all levels, with 41.8% of

management positions now held by women,

thanks to proactive strategies such as gender-

balanced recruitment shortlists. Overall, nearly

half of our internal appointments were women

(46%), while also 38% of our external hires were

female. On a management level, 51.4% of external

hires were women, while amongst our sales-based

external hires the share of females was 36.2%.

Championing women

inleadership

We continue to champion the professional

development of our female talents through

our Women in Leadership programmes.

During the last year, 78 of our female leaders

participated in the six-month programme,

which aims to build engaged and capable

female leaders, support their transition into

new roles and change cultural factors that

may hold them back. 32% of participants

who completed ‘Women in Leadership 1’

and 23% of participants who completed

‘Women in Leadership 2’, during 2022 and

2023, have been promoted. Our CEO, Zoran

Bogdanovic, featured as the first guest in

itsnewcommunity talks.

Our own ‘women leader stories’ video

series included topics around work-life

balance, career growth and leadership.

It has attracted over 18 million views

since its launch in 2021! Finally, our local

business units continued creating their own

regionally targeted campaigns to empower

women, including breaking women in sales

stereotypes in Serbia and women in supply

chaincampaignsin Austria and Romania.

Production Manager, Anna Zehetner-Tüttö, in

our Irish business explains her journey as part

of our Women in CCHBC series

Finding our Gen Z

futureleaders

We were delighted to kick-start our

international leadership trainee programme.

Designed to challenge and develop Gen Z

graduates to become our next generation

of leaders, it is focused on commercial

experience through a 70-20-10 learning

model that combines hands-on experience

with mentoring from our senior leaders

and highly acclaimed formal learning in

partnership with Hult, a private business

school. We supported the programme with

a marketing campaign, ‘Bring Your Own

Magic’, which reached out to more than 2.5

million Gen Z candidates. The campaign was

nominated for ten global and local awards for

digital communication and employer branding

excellence, and won six including Silver in the

Digital Communication Awards 2023.

Here are our new leaders in action!

Watch the video onlineWatch the video online

We were proud to receive 15 diversity-related

awards. Further highlights included the following:

• Ten women senior managers joined WeQual,

an initiative that brings together global

organisations to drive gender equality. Our CEO

continues to be a judge at the WeQual awards

for female leaders.

• Participating in the LEAD conference, as

a TCCC partner – the largest diversity and

inclusion event for the European FMCG and

retail industry.

• Support The Boardroom in Greece to develop

women for Board positions.

To ensure we adhere to all applicable laws and

regulations and demonstrate best practice

around diversity and inclusion, we regularly review

our Human Rights Policy, our Code of Business

Conduct, and other internal standards. Find out

more on pages 114 to 115 and on our website.

Management positions held by women

2017 2018 2019 20212020 2022 2023

41.8%

40.2%

39.4%

38.7%

38.0%

37.5%

35.4%

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 49

DIA

Academy

DIGITAL

Academy

PREMIUM

SPIRITS

Academy

SALES

Academy

LEADERSHIP

FASTFORWARD

Women in

Leadership

COFFEE

Academy

DIGITAL

Academy

Our Sales Academy

delivered

145,200

hours

of training in 2023

Growth pillars continued

Cultivate the potential of our people

Talent development:

Our lighthouse capability

Our commitment to people development is

supported by our constantly evolving Talent

review framework, which enables us to identify

successors for senior leadership roles. This year

we have increased the number of successors

to country function head roles by 2 percentage

points and out of all identified successors 48%

are now women. At the same time, we identified

more than 200 emerging talent individuals to

tailor their development early on in their career

and accelerate their growth. We continued

optimising development tools, such as STAY and

career conversations, and individual development

plan guides. Talent Builders was launched as a

programme to support all new people leaders on

an end-to-end journey dedicated to the essentials

of recruiting, developing and retaining people.

1,325 frontline leaders started their Talent Builder

journey in 2023.

To enhance talent visibility across business units

and functional areas, we worked with 26 cross-

country talent pools, enabling more internal

moves across our countries and functions.

Thiscontributed to 87 appointments into senior

leadership roles, with 84% filled internally.

In total, around 300 people went through

our acceleration programmes in 2023, which

continues to be the main source of our internal

succession. We have also focused on our

critical growth capabilities, introducing ‘x-ray’

reviews to proactively identify where we need

to invest inexternal hires or internal capability

development, whichare vital for sustainable

business performance and growth. This will

help usto strengthen the talent pipeline, ensure

proactive identification of succession gaps and

enable long-term planning.

Developing critical sales and

supply chain capabilities

We offer a suite of academies that support

professional development of key sales roles. We

had another year of strong uptake in 2023, with

over 1,300 new Business Developers becoming

certified (licence to start and licence to sell) and

89% of existing Business Developers achieving

certification. Alongside new Premium Spirits

and Coffee Academies, we launched a Digital

Commerce Academy and relaunched our Sales

Academy for Key Accounts. We also launched

MYcroLearnings across all our markets as

five-minute bitesize online sessions offered

every two weeks to our entire sales force to

reinforcefoundational and critical elements

ofsales capabilities.

We launched a new selection tool to hire

Business Developers in 2023. Combining

input from over 3,600 candidates and existing

Business Developers, we were able to introduce

performance and retention predictors to

support hiring decisions. The new tool has

already improved candidate experience,

reduced time to recruit by 15% and improved

retention ofnew Business Developers by

around 5%.

When it comes to investing in our supply chain

talent, we launched the Supply Chain Academy

to approximately 95% of all supply chain

personnel across manufacturing, logistics,

quality, planning and procurement. More than

1,300 colleagues acquired their licence, and

we are targeting 100% participation in the

yearahead – showing operational excellence

inaction.

EXCEL

Passion

to lead

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 50

Growth pillars continued

Cultivate the potential of our people

Helping our people realise

theirpotential

Our talent development reinforces continuous

learning and upskilling, while giving people the

opportunities for personal growth. Continuously

striving to make learning accessible to all, we

delivered over 830,000 hours of learning in

2023, of which 12% was in personal skills and

74.6% was in functional skills. The majority of

our employees learned ‘online’, with 71% of the

learning activity being in self-paced, ‘anytime,

anywhere’ format. Inits fourth consecutive year,

our virtual LearnFest drew inover 6,600 attendees

across16sessions andfour days.

Ensuring our employees can also learn from each

other, we provide access to coaches and mentors

through technology-enabled solutions. After

asuccessful campaign to inspire and encourage

internal coaching, in 2023 we incorporated it

into other learning and talent initiatives. Looking

to future talent, Avature, our new recruitment

platform, saw rapid and full adoption by our

recruiters, doubling the number of candidates

perrecruitment requisition and candidates in our

talent network. We successfully completed the

second phase of Avature implementation with a

new career site, automated recruitment reporting

and advanced talent acquisition analytics.

Recognised as an employer of choice

In 2023, we increased our ranking in Universum’s

employer of choice ratings, despite ongoing

change in talent preferences. Overall, external

perception of our business increased by six points,

positioning us in 12th place across all industries

and in the top five of preferred employers in

the FMCG sector, of 16 markets. Our brand

and reputation as an employer is supported by

authentic accounts shared by our people – each

year, around 1,300 employees share regular

content about Coca-Cola HBC on social media

platforms, reaching over three million potential

recruits to our business – aconsistent growth

of85% versus 2022.

Our people practices have been recognised

externally, with 74 prizes and awards in the last

year. As well as the diversity and inclusion awards

listed above, recognition was given to employer

branding, talent and employer reputation.

Threemarkets were certified by the Top

Employers Institute.

Percent of female leaders

41.8%

Hours of learning

830,000

Talents went through acceleration

programmes

300

Priorities in 2024

• Build unmatched sales teams by

strengthening our commercial

talentpipeline.

• Stay resilient and closely connected

withour teams through continuous

listening and simplifying their lives to the

maximum, so that they continue focusing

on helping our customers grow.

• Cultivate our growth mindset-driven

culture through simplicity and

proactivecollaboration.

• Enable our people and teams to drive

higher impact, through gender-balanced

teams and more productive ways

of working, while strengthening our

criticalcapabilities.

UN Sustainable

DevelopmentGoals

Efforts to foster an engaging workplace

and an inclusive environment, nurture and

develop the capabilities of our people,

increase gender balance in our management

ranks and reduce stress and support

employee wellbeing all contribute toward

global goals for development. The specific

Sustainable Development Goals supported

are those for: good health and wellbeing;

gender equality; decent work and economic

growth; reducing inequalities; and peace,

justice andstronginstitutions.

Romanian PR Awards

Silver award for excellence

in‘Employer Branding and

Diversity Management’

Digital Communication

Awards

Silver winner 2023

Employer Branding Awards

Gold Best Use of ‘ Employee

Generated Content’

Silver award in ‘Best Use of

Social Media in an Employer

Branding Campaign’

Bronze award in ‘Best

EmployerBranding

CampaignTargeting Gen Z’

Bronze award in ‘Best

Recruitment Campaign’

The RAD Awards

Early Careers Attraction

Nominee

Candidate Experience Nominee

Graduate Campaign Nominee

European Excellence Awards

‘Innovation of the year’

Nominee

Over 6,600 colleagues attended our

onlinelearnfest.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 51

You can read more about our sustainability achievements

in this chapter and find out what colleagues think about

our ESG ratings in the video below.

Watch our video online

52Coca-Cola HBC Integrated Annual Report 2023

Growth pillars

1 As at 8 December 2023

We were ranked as the world's most

sustainable beverage company for

the seventh time by Dow Jones

Sustainability Indices 2023

Earn our licence

tooperate

At Coca-Cola HBC, we are proud to be global

industry leaders in sustainability. We have

thehighest scores and rankings in ten of the

most-recognised ESG ratings.

We are clear and ambitious about what we

want toachieve on our sustainability journey.

Our Mission 2025 commitments on climate,

packaging, water, ingredients, nutrition, people

and communities set measurable targets.

Weaimto achieve net zero emissions by 2040

andhave a net positive impact on biodiversity

incritical areas of our value chain.

tooperate

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 52

Sustainable growth

We are proud to be global industry leaders

in sustainability. This year we were ranked –

for the seventh time – as the world’s most

sustainable beverage company by the Dow

Jones Sustainability Indices

. Our score positions

us in the top 1% of 9,400 companies across 62

industries. This year we also scored a double-A

ranking for our commitment to transparency on

climate and water from CDP and we are on CDP’s

2023 Supplier Engagement Leaderboard.

These achievements are the result of our clear

vision and targets in sustainability, bold and

entrepreneurial mindset, and continuing investment

in technology and innovation. Strong collaboration

with our suppliers and partners and highly skilled and

committed colleagues working across our markets

have also been crucial to this success. We know we

still have work to do and remain committed to being

part of the solution toglobal sustainability challenges.

Sustainability creates value for our stakeholders and

supports the socio-economic development of the

communities in which we operate. As we continue to

produce our drinks in more sustainable ways, it helps

us open up opportunities for a better future.

Here are some examples of what we are doing:

• A significant focus for us is promoting plastic

circularity, and our primary packaging is already

100% recyclable. We are making strong

progress towards achieving our other Mission

2025 commitments on packaging of collecting

at least 75% of the primary packaging we place

in the market and using, on average, 35%

recycled PET in ourbottles

• In 2023, 100% of our electricity in the EU

andSwitzerland came from renewable and

clean sources.

• On water stewardship, we now have community

projects in 12 water risk areas where we operate

– up from eight last year.

• We announced a new charitable foundation,

with an initial donation of €10 million, dedicated

to supporting local communities.

• We became a partner in the $137.7 million Greycroft

Coca-Cola System Sustainability Fund with seven

other bottlers and The Coca-Cola Company.

We strongly believe sustainability is a true growth

driver for us and our partners. We continue to

integrate sustainability in our business model

andsupport value creation for the business:

• In Austria, we invested €12 million in a returnable

glass bottling line for both one litre and our new

400ml resealable bottles

. We also introduced an

industry-leading, innovative solution to replace

plastic shrink film with 100%-recyclable paper

on 1.5 litre multi-packs. These innovations help

us improve packaging circularity and win in the

marketplace as they meet our consumers’ demand

for glass packaging and no-plastic packaging.

• We have invested more than €50 million in

threein-house rPET production units. This

supported our shift to 100% rPET portfolio in

selected markets. In-house rPET production

helps us reduce costs compared with buying

from third-party suppliers and eliminates extra

transport costs.

• We exceeded our goal of having 50% energy-

efficient coolers in the market (excluding Egypt,

which we acquired in 2022), with a total of 55%

by December 2023 – two years ahead of target.

These coolers consume less energy, sothey

generate less emissions, and mean lower

energy costs for our customers.

This year we integrated Egypt into our

sustainability strategy – after we acquired the

Coca-Cola Bottling Company of Egypt in 2022

– and developed specific plans for the market.

Aswecontinue to develop our 2030 aspirations,

wewill integrate our Egyptian operations in our

futurecommitments.

We know that there is a lot to be done, but we

are encouraged by the progress we have made

in 2023 and remain committed to accelerating

ourefforts tobuild a more sustainable future.

Growth pillars continued

2023 highlights

• Continued our decarbonisation journey in

alignment with our NetZeroby40 roadmap.

• Focused on packaging decarbonisation using

ahigher percentage of recycled materials.

• Supported further roll-out of Deposit Return

Schemes in our EU markets.

• Promoted Extended Producer

Responsibility (EPR) policies and the launch

of newpackaging collection systems in

prioritymarkets.

• Completed biodiversity impact study

following the SBTN methodology.

• Expanded our partnerships in water and

wastereduction.

• Continued our focus on #YouthEmpowered

as our flagship community programme.

• Ongoing support to communities in need.

2023 highlights

Earn our licence to operate

1. DJSI as at 8 December 2023.

2. Excluding Egypt.

3. Co-funded by the European Union, NextGenerationEU.

Principal risks and opportunities

• Product relevance and acceptability

• Sustainable packaging

• Suppliers and sustainable sourcing

• Managing our carbon footprint

• Water availability and usage

• Ethics and compliance

Read more on p54 to 68

Volunteers joined The Zero Waste Tisza

programme in Hungary to clean up the river

Stakeholders

Our communities

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 53

In 2016 we were oneofthe

first companies to adopt

the Science Based Targets.

Wealso introducedan

internalcarbonprice for

business decision-making

reduction

planendorsed

by SBTion 1.5º

pathwayin2021

55% of coolers

energy efficient

in2023

Scope 1+2 Scope 3 Carbon Removal Projects Scope 1+2+3 emissions

2010

4,991

4,400

3,791

3,485

1,637

930

563

357

255

2017

2023

2030

2040

#NetZeroby40 roadmap for scopes 1, 2 and 3

2023 Actual: -30% vs. 2010

2023 Actual: -16% vs. 2017 (SBTi base year)

From 2024 to 2039:

Beyond value chain mitigation

Neutralisation of residual

emissions as of 2040

#NetZeroby40

goal

SBTi baseline

for NetZero

S1+2: -55% vs. 2017

S3: -21% vs. 2017

S1+2: -97% v. s 2017

S3: -63% vs. 2017

NETZERO 40

commitment

2024-2026 We

willintroduce

renewable fuels for

thermal Energy

Accelerate

packaging

decarbonisation

asof2025

5,920¹

3,740¹

1,656¹

4,148

4,963¹

Climate

Towards net zero emissions

In 2021, we committed to achieve net zero

emissions across our entire value chain by 2040.

This is our most ambitious, complex and forward-

looking commitment. We were among the first

companies to adopt science-based reduction

targets by the Science Based Targets initiative

(SBTi). In our net zero roadmap, our starting point

is2017, which is the baseline for our science-

based targets.

We have halved direct emissions and reduced our

absolute total value chain emissions in scopes 1,

2 and 3 by a third1 from 2010 to the end of 2023,

despite a global increase in emissions

. These

results come from our sustained investment and

focus, and highlight ourconsistent approach to

decarbonisation.

Reducing carbon emissions is the non-negotiable

goal for our business. We continued to work

across our value chain to reduce emissions,

witha particular focus on packaging, coolers

andingredients. We do this because we will make

the biggest progress by delivering sustainable

solutions in these parts of our value chain.

By the end of 2023, we had reduced emissions

from scope 1 and2from our direct operations

by 36% and in all three scopes, our absolute

emissions, by 16.4% compared with 2017.

1. Excluding Egypt.

2. Global Carbon Project; Expert(s) (Friedlingstein et al. (2023)).

Looking ahead

In 2023, we updated our net zero roadmap

with two important changes. We integrated

our Egyptian operations into our 2030 and

NetZeroby2040 climate targets and, in

January 2024, we submitted them to the SBTi

for validationand approval. We also added

new Forest, Land andAgriculture (FLAG)

targets.

After SBTi validation, these changes will be

reflected in our net zeroroadmap:

• In scope 1 and 2, we integrated Egypt and

follow the already established pathway

(1.5°Cpathway) for 2030 and 2040.

• In scope 3, we integrated Egypt and split

our targets into two categories: energy and

FLAG.

• In scope 3, our energy-related targets will

follow the newly established pathway Well-

Below-2-Degrees (WB2D) until 2030 and

then the 1.5°C pathway until 2040, our net

zero year.

The SBTi introduced the new targets for

FLAG in 2023. This new standard guides

businesses to split greenhouse gas emissions

(GHG) into non-FLAG and FLAG-related

categories. Non-FLAG emissions are

commonly known as energy-related GHG

emissions. FLAG-related emissions apply

to commodities from forestry, land and

agricultural sectors. For us, this means scope

3 packaging, wood and paper pulp, and sugar

and fruit juices. We do not have any FLAG-

related business or activity under our own

operational control. However, we have them

in our upstream value chain in forestry and

agricultural commodities (scope 3).

We will now update our climate transition

plans toreflect all our main decarbonisation

strategies, quantify our main strategic

resources and milestones, and convert

theseto a clear set ofactions.

Growth pillars continued

Earn our licence to operate

Scope 1+2 and Scope 3: all numbers exclude Egypt

1. Recalculation of carbon emissions due to conversion factors changes

andaccording to the GHG Corporate Accounting and Reporting Standard.

2. As defined based on Science Based Targets initiative.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 54

Performance summary

By the end of 2023, we had reduced

emissions by the following amounts:

GHG emissions

vs 2022 vs 2017

Scope 1 and 2 -19% -36%

Scope 3 0% -14%

Scope 1, 2 and 3 -1.6% -16.4%

1. Excluding Egypt.

Scopes 1 and 2

We have taken action on two of the main

contributors of scope 1 and 2 emissions:

• Focusing on being more energy efficient by

reducing the amount of energy we use.

• Switching to low carbon and sourcing our

energy from renewable sources such as solar

and hydro power.

We delivered several projects that helped to

progress reductions in scope 1 and 2 emissions

ofCO

Growth pillars continued

Earn our licence to operate

Absolute scope 1 and 2 CO

e emissions

(’000 tonnes)

100

200

300

400

500

600

563

538

481

432

426

443

-55%

2030 vs 2017

357

255

-4%

-14%

-23%

-24%

-21%

-36%

-55%

2017 2018 2019 2020 2021 2022 2023

2030

goal

2. Excluding Egypt.

Absolute scope 3 CO

e emissions

(’000 tonnes)

1000

2000

3000

4000

5000

2017* 2018 2019

4,400

4,359

4,195

2020

3,902

2021

4,046

2022

3,775

2023

-21%

2030 vs 2017

3. Emissions are recalculated due to conversion factors change and exclude Egypt.

3,791

2030

goal

3,485

-1%

-5%

-11%

-8%

-14% -14%

-21%

Renewable and clean

electricity in the European Union

and Switzerland

(%)

100

2017 2018 2019

2020

2021

2022

2023

100% in 2025

100

2030

goal

100

4. Clean source means CHP using natural gas.

Scope 3: Reducing indirect emissions

from our value chain

Over 90% of our emissions are in scope 3,

wefocus on three main areas in collaboration with

our suppliers: packaging, ingredients and coolers.

• Packaging accounts for 36% of our scope1,2

and 3 emissions. We are reducing packaging-

related emissions through a range of

actions, including rolling out new packaging

collection systems, increasing recycled

content, expanding reuse and eliminating

unnecessarypackaging.

• In 2023, we exceeded our target of having

50% ofenergy-efficient coolers in shops and

outlets by five percentage points, bringing

thetotal to 55%. As a result, we reduced

emissions by 127,461 tonnes compared

withour2017baseline.

100%

rPET bottles

inRomania

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 55

36%

29%

19%

Growth pillars continued

Earn our licence to operate

We collaborate with our suppliers and partners to

encourage them to reduce their own emissions.

In 2021, fewer than ten suppliers were in CDP

to disclose their emissions, so we set up our

emissionssupplier programme. By the end

of2023:

• 189 of our significant suppliers disclose their

emissions through CDP.

• 117 have already set, or have committed to set,

science-based targets.

• These 189 suppliers buy – on average – 26%

oftheir energy from renewable sources.

Engaging suppliers to reduce energy and

use renewable energy is key to meeting our

NetZeroby40 commitments. In 2023, our

SupplierConference focused on ‘opening up a

moresustainable future together’. We were joined

by about 200 supply partners. At the conference,

we gave them inspiration and tools to start or

continue their own sustainability journey and

celebrated those who are already on the path to

reducing emissions. The event was supported

byexpert insight from CDP and the World

Economic Forum.

Delivering our drinks in more sustainable ways

We can reduce CO

emissions by changing the types of transport we

use. Inthe first pilot of its kind on the island of Ireland, we are using three

best-in-class electric Heavy Goods Vehicles (e-HGVs) with a range of

300km. Weexpect the e-HGVs to reduce carbon emissions by 229 tonnes

each year – the equivalent of charging over 25 million smartphones

We’vecollaborated with a customer and transport supplier on thisinitiative.

This type of partnership along the value chain aims to showcase how

important it is for the industry towork together and share insights

sowecanreach our shared andindividual sustainability goals.

In Serbia, we more than doubled the number of Compressed Natural

Gas (CNG) trucks we use in 2023. Since 2021, we have reduced our

emissions by around 480 tonnes annually and by the end of 2024,

weexpectto save around 830 tonnes each year.

1. US Environmental Protection Agency comparison.

Scope

Outsourced

fleet

Other Scope 3

Electricity,

purchased heat,

steam, CHPs

Fuels in

manufacturing,

own fleet

Cooling

equipment

Packaging

Ingredients

Our key focus projects

Scope

• Renewable fuels

• Green Fleet

• Packaging: rPET; packageless;

refillables; lightweighting; replacing

plastic in secondary packaging

• Ingredients: low- no-sugar,

sustainable sourcing

• Cooling equipment: energy-efficient

coolers, greening of electricity grid

• Critical enabler: suppliers’

emissionsimprovement

• Renewable energy

• Energy optimisation projects

•

Scope

GHG CO

e split by scopes and categories FY 2023 (including Egypt)

Innovating for decarbonisation

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 56

Our Green Fleet Programme helped us to reduce

emissions in 2023.

Watch Manna Drones in action

Growth pillars continued

Earn our licence to operate

Decarbonising our value chain

We continued our work to meet our emissions

reduction targets for 2025, 2030 and 2040. We

invested in energy efficiency and recovery, and in

low or zero-carbon (renewable) energy sources,

and continued to improve, for example, our

processes, planning and cleaning.

Our EU and Swiss manufacturing facilities moved

from using 99.2% in 2022 to 100% renewable and

clean

sources this year. We have energy transition

plans in place for other business units to follow

suit. We also intensified our efforts in Nigeria

andEgypt.

By the end of 2023, we had invested about €28

million in energy-efficient solutions, including Top

20 energy savers (excluding Egypt).

Sourcing our energy

In Nigeria, our eight manufacturing plants

now have solar panels and source 14% of their

electricity from renewable energy sources. We

had increased our Nigerian renewable and clean

energy supply from 58% in 2022 to 73% by the end

of 2023. All the electricity supplied from the public

grid is renewable for our Nigerian operations.

This year, we started using cleaner sources

such as solar energy from rooftop panels in our

production plant in Challawa. We also continued to

extend these sources in our production plants in

Ikeja and Abuja, reaching total installed capacity to

12 MW compared with 10 MW in 2022.

In Egypt, we installed solar rooftop panels in four

out of five of our plants, so 10% of our annual

electrical energy comes from renewable sources.

We are working on plans to optimise energy use

solutions and collaborating with our partners to

expand renewable electricity sourcing plans.

Transitioning to a green fleet

In 2023 , we built on the positive momentum of our

Green Fleet Programme, keeping the trajectory to

achieving our 2030 CO

emissions reduction goal.

We continued our transition to electric and hybrid

vehicles, which comprise 44% of our total light

fleet, compared with 16% in 2021 and 28% in 2022.

We reduced our fleet carbon footprint compared

with our baseline (2017) by 43%, a reduction of

about 43,743 tonnes of CO

. We reduced our

emissions on our light fleet by 19,513 tonnes

compared with our baseline, and about 24,230

tonnes of emissions reduction over the same

period for our heavy fleet.

Manna drones in Ireland

Drones offer fast, safe and quiet home delivery,

and can deliver to a five-kilometre radius in

less than three minutes. They can also be up

to eight times more efficient in terms of CO

emitted during delivery when compared with

conventional petrol vehicles, according to

areport from Maynooth University in Ireland

in2022.

We are pleased tohave invested – through our

Ventures arm –in Manna Aero, an Irish start-

up leading the way in food and beverage drone

deliveries. We believe this partnership will help us

drive profits, deliver better customer service and,

importantly, reduce harmful CO

emissions.We

are looking forward to Manna Aero expanding

its operations and bringing drone deliveries to

more cities in the EU and elsewhere.

1. Clean source means CHP using natural gas.

Innovating for decarbonisation

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 57

1. Design

• Lightweighted

• Less packaging

• Recyclable

• Innovations

Consumer

attractiveness

Customer

acceptance

Carbon

emissions Waste

Sustainable packaging contributes to

reducingcarbon emissions and waste

Sustainable packaging is attractive

toconsumers and widely accepted

2. Sell

• Energy-efficient

coolers

• Delivered by Green

Fleet

3. Collect

• Deposit Return Schemes

• Packaging Recovery

Organisations

• Refillables reverse logistics

4. Reuse or recycle

• Returnable glass

bottles

• rPET bottles

• Dispensed solution

with bag-in-box

or cartridge

technologies

• Reusable vessels

Our LitePac Top

innovation in Austria

100%

of our primary

packaging is

recyclable

by design

Packaging

Packaging plays a central

rolein delivering our Mission

2025 commitments and CO

emissions reduction target,

asit accounts for over a third

of our scope 3 emissions.

Improving the sustainability of our packaging is a

critical priority for us. We believe every package

has value and life beyond its initial use and that

it should be collected and recycled into a new

package or reused. We focused on making our

packaging more sustainable by investing in

recycled content, expanding reusable formats,

in-house rPET production infrastructure – which

helps us to have a high-quality, steady supply

of more affordable rPET in selected markets

– and driving the implementation of effective

collectionmodels.

Packaging can only be circular if it is recyclable.

Since 2022, 100% of our primary packaging – PET,

glass, aluminium and aseptic cartons – has been

recyclable by design. We achieved this milestone

three years ahead of our 2025 target.

Our Mission 2025 sustainable packaging visionis

built on three main pillars:

• Recovering our primary packaging for recycling

or reuse.

• Making our primary packaging fully recyclable.

• Increasing the percentage of rPET

inourbottles.

Growth pillars continued

Earn our licence to operate

Our sustainable packaging model

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 58

In 2023, we kick-started the Pack Mix of the

Futureprogramme across all EU geographies.

Itsets out our vision and trajectory on pack mix

tocontinue profitable growth while reducing our

footprint through packaging,

We continued to explore the role of dispensers

and reusable vessels to assess how they could

contribute to increasing reusable packaging. As

we do this, we leverage existing market solutions

and pilot new technologies.

Collecting and recycling

We are leading industry efforts to introduce

effective and efficient collection systems in all our

markets. These include Deposit Return Schemes

(DRS) in most of our EU markets.

Romania became the first market in our Group

in 2023 to combine all three key ingredients of

plastic packaging circularity:

• A 100% rPET local bottle portfolio.

• An in-house rPET facility.

• A Deposit Return Scheme.

By the end of 2023, six of our markets had

launched DRS: Croatia, Estonia, Latvia, Lithuania,

Romania and Slovakia, The Republic of Ireland and

Hungary launched DRS in Q1 2024. The Hungarian

DRS will have a six-month transition phase.

Well-designed DRS have a proven track record

of delivering very high collection rates, typically

over 90%. We are supporting several additional

markets to launch DRS in 2025-27.

These combined efforts meant that, in 2023, we

made significant progress towards our packaging

collection goal, delivering an overall collection rate

of 56%, an increase of eight percentage points

from 2022

In Africa, we are working with governments and

other stakeholders to help establish effective

Extended Producer Responsibility (EPR) systems

for packaging collection on a national level.

In 2023, in Nigeria, we supported a range of

collection projects, including those of the Food &

Beverage Recycling Alliance (FBRA). As an alliance,

FBRA collected almost 40,000 metric tonnes

(MT) PET in total in 2023 – more than three times

theamount collected in 2022.

In Egypt, we continued our partnership with

recycler BariQ to collect and recycle more than

20,000 MT PET, while also engaging with the

Egyptian government to offer our support in

establishing a new national Packaging Recovery

Organisation (PRO).

Tethered or attached closures help capture the

entire package for recycling. From 4 July 2024, all

plastic closures on beverage containers over three

litres in Europe must have tethered capstomeet

new rules in the EU’s Single Use Plastic Directive.

In 2023, we extensively rolled out tethered

closures to over 80% of our beverage containers

in scope, so we were prepared for this EU

Directive. This roll out covered our EU markets and

Bosnia, North Macedonia, Serbia andSwitzerland.

Slovakia: Outstanding

collection results from DRS

PET collection rates in Slovakia soared from

50% in 2022 to 92% in 2023, after a new

Deposit Return Scheme was introduced

in2022. In its second year of operation,

thescheme had 3,250 collection points

andhigh levels of consumer engagement.

This demonstrates how effective a well-

designed and properly implemented

DRS canbe in increasing collection rates.

Thescheme gives a right of first refusal to

all registered producers on the market to

purchase their fair share of the collected

post-consumer materials, supporting

circularity and high-quality bottle-to-bottle

and can-to-can recycling.

Growth pillars continued

Earn our licence to operate

1. Excluding Egypt.

rPET

Using recycled content is a key part of our

approach to making our packaging circular. In

2023, 16.1% of the PET that we used was rPET

This represented a significant increase compared

with our 2022 performance (10.5%) and solid

progress towards our 2025 target to have 35%

rPET usage across our Group

By the end of 2023, in Austria, Italy (excluding

water), the Republic of Ireland and Northern

Ireland, Romania and Switzerland, we had shifted

our locally produced plastic bottles to 100% rPET.

With these initiatives, we almost doubled the

percentage of rPET in EU markets and Switzerland

in the last year from 22.3% rPET in 2022 to

42% rPET in December 2023. To date, we have

invested over €50 million in in-house rPET

production facilities in Italy, Poland and Romania.

In-house rPET production helps us reduce costs

compared with buying from third-party suppliers

and eliminates extra transport costs.

We are on track to achieve 50% rPET in our plastic

bottles across our portfolio in EU markets and

Switzerland by 2025.

New RGB line in Austria video

Romania rPET in-house launch video

Progress towards our sustainable

packaging vision

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 59

Austria: Innovating to

expand reusable packaging

Coca-Cola HBC Austria is a first mover in our

29 markets when it comes to innovating with

reusable packaging and minimising plastic,

both of which are in demand by customers

andconsumers.

In 2023, we opened a new high-speed,

water and energy efficient, returnable glass

bottling line in Edelstal. This €12 million

investment was co-funded by the European

Union NextGenerationEU.

For the first time in Coca-Cola HBC, we now

produce 400ml returnable, resealable glass

bottles, so consumers can enjoy our drinks

on the go or at home.

We also produce one-litre, reusable and

universal bottles. This means we use

thesame shape of bottle for all our soft

drinksportfolio.

Growth pillars continued

Earn our licence to operate

1. Lifecycle analysis (LCA) by IFEU: LCA study with Product

Environmental Footprint methodology, July 2022.

2. Transactions excluding beer, coffee and spirits.

Expanding reusable packaging

Reusable packaging plays a critical role in reducing

waste and our carbon footprint, and minimising

the amount of packaging we produce. Reusable

packaging includes returnable and refillable glass,

and dispensers such as fountains or freestyle

machines, provided reusable vessels are used.

We continued to explore new-generation

Compact Freestyle Dispensers in selected

markets. These allow consumers to use their

owncup or vessel for more than 40 soft drinks

andcut emissions by up to 70% emissions

compared with PET

In 2023, 11.7%

of the drinks we sold

were in returnable containers and 4.3%

throughdispensers.

Eliminate unnecessary packaging

We launched innovative secondary packaging

for multi-packs of 1.5 litre Coca-Cola, Fanta and

Sprite. The revolutionary new type of cardboard

– LitePac Top – is easy to carry and recycle.

Thepilotproject in Austria will initially save

about200tonnes of plastic each year.

We trialled new, high-performance stretch film

inIreland and Austria that reduces the amount

offilm needed by 30%. We will continue to test

thisin 2024 and plan to introduce this to our

sparkling soft drinks portfolio in 2025.

Technology helped us to reduce the overall

weight of packaging materials. In 2023, we did this

successfully in the Baltics, the Czech Republic,

Greece, Hungary, Poland, Nigeria and Northern

Ireland. This saved over 600 tonnes of PET and

reduced, on average, the amount of resin we used

by 11% for specific stock-keeping units (SKUs).

It also reduced CO

emissions by1,300 tonnes

ayear.

We reduced the weight of aseptic plastic closures

in the Czech Republic, Hungary, Poland and

Romania, and closures for sparkling soft drinks in

Nigeria. Overall, this saved 300 tonnes of High-

Density Polyethylene (HDPE) a year, reducing CO

emissions by over 600 tonnes.

Read more on HUG-IT story p17

Increasing recycled materials

insecondary packaging

We piloted using 100% PCR content in shrink

film in some ofour packs in Italy, Poland and

Switzerland. Weplan to launch these in markets

in2024.

Poland: Reusing customer displays

A new approach to promotional displays has been piloted with

our customer Żabka, a large chain of convenience stores in

Poland. This new system only requires the customer to change

the branding of our products in stores – not the display units

themselves. This means that our customer retains a high-

quality display and we save money on transport and production

costs. This collaborative initiative created commercial value

for us and for our customers while reducing waste and cutting

down on CO

emissions.

Zoran Bogdanovic, CCHBC CEO, Marcel Ciolacu, Prime Minister

of Romania, and Nikos Koumettis, The Coca-Cola Company,

President of Europe Operating Unit, at the opening of our new

in-house rPET production facility in Romania

Progress towards our sustainable

packaging vision

Progress towards our sustainable

packaging vision

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 60

Water

Water touches every aspect

ofour business.

Climate change affects water availability and

water quality. Our commitment is to protect this

valuable resource, especially in those areas of our

operations where water is scarce or at risk. We do

this by:

• reducing, reusing and replenishing the amount

of water we use in ouractivities;

• recycling the wastewater from our

manufacturing sites and returning it to

theenvironment;

• ensuring that communities have access to safe,

clean water; and

• engaging with suppliers on our Principles for

Sustainable Agriculture.

Read more on p66

We use water from the start to the end of the

production process for our drinks:

• Growing core ingredients, such as sugar and

thefruit that provides our juice concentrates.

• Using it as the largest component of our

beverages and cleaning, washing and sanitising

production equipment and processes.

We have been doing comprehensive risk

assessments for many years and calculating

theTrue Cost of Water for investment decisions.

We have updated this every year since 2015.

Water reduction and stewardship

Our Mission 2025 commitment for water risk

areas is to reduce water-use ratio in plants by

20% compared with our 2017 baseline and help

secure water availability for communities in which

weoperate.

In our operations, we have 19 water priority

locations

, including Armenia, Bulgaria, Cyprus,

Greece, Italy and Nigeria. These locations face

specific stress factors such as:

• water being scarce;

• local communities lacking access to water and

sanitation services; or

• deteriorating water quality in the watersheds.

In these areas, we focus on water-replenishment

activities, nature-based solutions and improving

water quality.

In 2023, our overall reduction in water priority

locations was 6.8% compared with our 2017

baseline. We maintained water efficiency at the

same levels as 2022 in all our production plants.

Inwater priority locations, our water usage was

0.6percentage points higher than 2022.

Our production plants in the following markets

performed well:

• In Bulgaria, we improved the overall water

efficiency by 5% compared with 2022.

• In Greece and Cyprus, we improved the overall

water efficiency by 6% compared with 2022.

• In Nigeria, five of our production plants

delivered strong results on water efficiency.

Thedecrease ranged from 1% to 5% compared

with 2022.

Growth pillars continued

Earn our licence to operate

1. Excluding Egypt.

Greece: Tackling water

scarcity for impact

Water scarcity is a threat to farmers, local

communities and tourism in Crete’s largest

city, Heraklion. This year we improved irrigation

and water supply systems at five locations to

save 14.5 million litres of water a year through

our Zero Drop programme, which we funded

with The Coca-Cola Foundation. The water

resources protection programme is locally

implemented by the Global Water Partnership

– Mediterranean (GWP-Med) in collaboration

with the Municipality of Heraklion.

In Profitis Ilias, we replaced old leaking pipes

to secure the water distribution network for

irrigation. And in Voutes, we upgraded two major

pumping stations, saving energy, reducing CO

emissions and preventing waterlosses.

We shared water-saving advice with the

local community and a team of environmental

educators trained schoolchildren. This

included playing a water-saving game of

snakes and ladders that was specially created

for the programme. We also produced new

educational displays for one of our customers,

Chalkiadakis stores. These shared tips on how

to save water on the promotional displays

and in take-away leaflets for customers.

Consumers can also buy our products at

adiscount. This important community issue is

strongly connected with our customer’s ESG

agenda. Our collaboration increased sales,

created apositive perception and benefitted

the wider community.

We also completed the first part of work in

Schimatari/Tanagra in Greece to prevent

water losses at a local water treatment plant.

Romania: Rivers

Interceptors project

Trapping litter on four rivers flowing into

the Danube is helping to reduce pollution in

Romania. The innovative cleaning system

spreads over the entire width of the river

in specific areas that were chosen after a

technical evaluation of where it would be

most effective. The traps collect litter that’s

floating on, and one metre below, the surface

to stop it from going any further. The River

Water Interceptors project brings together

the private and public sector. We are in

partnership with the CSR Nest Association,

a non-governmental organisation that

is managing the project, The Romanian

Waters National Administration and local

municipalities. Since it was set up in February

2022, the traps have stopped over 11 tonnes

of waste from flowing into the River Danube

and on to the Black Sea. This has included

1.5 tonnes of recyclable PET and 8.5tonnes

of wood, which we donated to local

communities to use.

Our water community projects

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 61

Cyprus: Zero Drop

–MissionWater

The last phase of the water resources

protection programme “Zero Drop–Mission

Water” in Cyprus was implemented in 2023

by Global Water Partnership – Mediterranean

(GWP-Med) NGO in collaboration with the

Municipality of Aglantzia and Coca-Cola in

Cyprus, with the exclusive funding from The

Coca-Cola Foundation. According to GWP-

Med, the programme’s technical interventions

in the municipality have the capacity to

save an estimated 3,000,000 litres of water

annually, while improving the irrigation of

the municipality’s green spaces. From these

interventions, about 10,000 people from the

local community of Aglantzia, Cyprus have

benefited. This new project builds on the

successful implementation of a previous 10-

year water resources protection programme

inCyprus thathas achieved remarkable results,

saving several million litres of water annually

andpositively impacting the lives.

Nigeria: WASH projects

Providing access to clean and safe water

in local communities is an important part

of our work in Nigeria. In 2023, we built

sanitation and water facilities in Benin, Kano,

Lagos, Maiduguri and Owerri as part of our

€1million commitment to celebrate our 70

anniversary in Nigeria. The facilities, which

include a block of toilets, new boreholes

andoverhead tanks, aim to improve people’s

lives through access to Water, Sanitation

andHygiene (WASH) services in communities

where we operate.

Growth pillars continued

Earn our licence to operate

We continued to invest across our markets in

technologies with a focus on Top Water Savers

toreach our 2025 commitments.

For example, we have invested in:

• dry rinsers that clean without water;

• automated controls for our reverse

osmosissystems;

• data-driven ion exchangers;

• backwash filtration units;

• optimising chemicals for coagulation; and

• upgrading cooling towers.

Some of our production plants in Egypt are

located in water stressed areas, so in 2023

weimplemented several projects to mitigate

therisks, including the following:

• commissioning a new water treatment in the

Sadat plant to increase capacity and improve

water efficiency;

• initiating an upgrade to the wastewater

treatment plant in Sadat;

• installing new in-line instrumentation

intheAlexandria plant to monitor raw

waterquality; and

• integrating new flowmeters

andupdatingwatermaps for

allplants.

Working with our suppliers

We measure the water consumption of our

critical suppliers to assess their basin and

operational water risks using the Water Risk

Filter methodology. We then work with suppliers

operating in high-risk areas to develop plans so

they can reduce their water use.

Water stewardship community projects

We have 12 water stewardship community

projects in water risk areas where we have

plants. In 2023, we started new projects in

Maiduguri, Nigeria. With support from The

Coca-Cola Foundation, we delivered solar-

powered boreholes with overhead tanks in

four communities. These aim to give 14,000

local people access to safe WASH services.

Weestimate our projects in Nigeria have provided

about 4.8 billion litres of clean and safe water in

thelast five years.

Our water community projects

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 62

People and

Communities

In 2023, we remained

focusedon making a

positive impact on the

local communities where

we operate. We supported

young people through

#YouthEmpowered with

training programmes

and skills development,

and communities in need

with product donations,

volunteering initiatives

anddisaster relief activities.

We are here for colleagues and

communities when disaster strikes

The world sadly witnessed more devastating

conflicts, natural disasters and extreme weather

events in 2023. We mobilised rapidly to provide

immediate aid where possible. This included

thefollowing:

• Greece wildfires: About 9,000 cases ofour

soft drinks, water, juices and coolers were

distributed through Humanity Greece,

theRedCross and local municipalities.

• Greece floods: We donated more than two

million bottles of beverages, mainly Avra

water, to people affected by the devastating

floods inThessaly, central Greece. Together

with The Coca-Cola Company and Bodossaki

Foundation, we donated €100,000 tosupport

their immediate needs. Through a mobile unit

of ‘Doctors without Borders’, thedonation

provided medical and psychosocial support

to people affected in Thessaly. We plan

toimplement a recovery project in the

affectedarea in 2024.

• Slovenia floods: Access to clean and safe

drinking water and rebuilding infrastructure

across the country were critical to help

communities recover. The Coca-Cola System

donated Römerquelle water and €100,000 to

the Slovenian Red Cross to help with this work.

• Turkey and Syria earthquakes: It was

important for us to help provide relief and

support the efforts of The Coca-Cola Company

and The Coca-Cola Foundation when these

earthquakes happened. Turkey and Syria are

not territories where we do business, but we

donated €100,000 to the Turkish Red Crescent

and CARE international in Syria.

Growth pillars continued

Earn our licence to operate

All figures include Egypt and Bambi.

Ireland, CzechRepublic andSlovakia,

and Italy: Donations to FoodBanks

We want to support people in need and tackle food waste as part of our

sustainabilitycommitments. Here are some of the initiatives we were

involvedwiththis year:

• Donated 70,000 meals in December 2023 in the Republic of Ireland. We

collaborated with our customer partner Tesco and FoodCloud, a not-for-profit

social enterprise working to tackle food waste and food security (pictured right).

• Co-operated with food banks in the Czech Republic and Slovakia to donate more

than 800,000 litres of beverages to food banks worth more than €360,000.

• Supported Banco Alimentare (National Food Bank) in Italy to distribute over

1.5million meals during the Christmas period. We also took part in its National

Food Collection Day with 55colleagues volunteering. Our seven local family

daysdonated the proceeds of their Christmas markets toBanco Alimentare.

Around 60 employees and players

from the Viennese Football Club

cleaned the home district of SK

Rapid in Austria. Photo credit

byMartin Steiger

Thank You

Fund in the

island of Ireland

Working with our communities

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 63

Community support in Ukraine

We continued to offer practical help and support

to people in Ukraine and our employees affected

by the conflict in 2023. With The Coca-Cola

Company and NGO partners, we provided water

and beverages to affected regions, offered

humanitarian assistance, restored infrastructure,

and installed electricity and heat generation

equipment. Since the beginning ofthe conflict

inUkraine, the Coca-Cola System and The Coca-

Cola Foundation have committed US $35 million

to support people in Ukraine.

The Coca-Cola System has helped in the

followingways:

• We donated €4.7 million and volunteering

support. In partnership with the Red Cross

Society of Ukraine, we provided 70,000 food

kitsand beverages to people in the regions

most affected by food and water shortages.

One kit contains one month’s supply of food

that does not need to be refrigerated.

• 54 electric generators were sent to hospitals,

schools, kindergartens, boarding schools and

centres for temporarily displaced people across

Ukraine after The Coca-Cola Foundation

donated US $500,000 to the Red Cross Society

of Ukraine. Seventeen centres for internally

displaced people also received 5,000 sleeping

kits for their residents through this partnership

and strong volunteering support.

• 45 mobile boilers were donated to Ukrainian

communities most in need to help to keep

people warmduring the winter. The cost of

the project was about US $3.5 million, which

was donated by The Coca-Cola Foundation,

inpartnership with theUkrainian Red Cross,

• A kindergarten that was destroyed in the

village of Bohdanivka is now being rebuilt and

will be able to accommodate more children.

The Coca-Cola Company donated US $1.2

million and we donated US $1.8 million to make

this happen. Our production plant has been

operating nearby for almost 25 years.

• At the end of 2023 we donated one million

bottles for the most vulnerable Ukrainians to

make the winter holidays a little more joyful.

Many company volunteers were involved in

the project across the whole country. Our

Ukrainian plant produced a batch of one million

1.5-litre Coca-Cola bottles with a special

mark on the label ‘For you’. With the help of

partner humanitarian organisations such as

the Ukrainian Red Cross and Caritas Ukraine

we distributed the drinks from December 2023

until February 2024. This token of gratitude was

also shared with the communities closest to the

frontline. We donated some of our beverages

to the D.R.E.A.M. Charitable Foundation, which

works together with the Scottish organisation

Siobhan’s Trust, to provide warm meals to

residents of such regions.

1.5m litres

of Coca-Cola to Ukrainian

families

US$1.8m

to rebuild a kindergarten in

Bohdanivka,Ukraine

8.9m litres

of beverages for food banks,

disaster relief, andnumerous

local initiatives

> 3,000

colleagues

focused on supporting

vulnerable communities, youth

and environment

>€7.9m

• Long-term community

initiatives

• Disaster relief for Greece,

Croatia, Slovenia, Bulgaria,

Italy and Austria

All figures include Egypt and Bambi.

Growth pillars continued

Earn our licence to operate

Providing

community support

in Ukraine

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 64

Lithuania

Estonia

Nigeria

Working with our communities

Watch the video online

#YouthEmpowered progress

We passionately believe that every young

person has the potential to thrive. Through our

#YouthEmpowered programme, we are equipping

them with the skills, experience and confidence

they need to secure a brighter future.

By the end of 2023, we had trained 944,948 young

people since the programme launched in 2017.

We are confident we will meet our Mission 2025

targetof training one million young people ahead

oftarget year.

By the end of 2023

944,948

young people trained

#YouthEmpowered progress

Here are just some of our 2023

#YouthEmpoweredactivities:

• In Nigeria, we trained 1,865 young people

on viable entrepreneurship and career skills

during the 2023 campus edition of our

#YouthEmpowered initiative. This is part

ofourcommitment to nurturing the country’s

future leaders.

• To celebrate its thirteenth year, The Coca-Cola

Thank You Fund across the island of Ireland

doubled the value of its grants to €200,000.

This year, 28 non-profit organisations were

awarded grants to help them champion and

empower young people to take an active role in

shaping, creating, and maintaining sustainable

communities. The Coca-Cola Fund operates

in partnership with the Irish Youth Foundation

and YouthAction Northern Ireland and is jointly

funded by TheCoca-Cola Company.

• Experts from the Coca-Cola System across

Bulgaria shared valuable advice and insights

with young people to help them develop

their skills before transition to employment.

Collaborating with SoftUni Digital, Junior

Achievement Bulgaria, Teen Station, and

localuniversities, free training was delivered

to4,788young people.

“It was just wow.”

“I would definitely

recommend it, good

experience.”

“During the practical

sessions, I clarified

what my strengths

are, I learned more

about myself.”

Co-operation, Creativity,

Communication, Critical

Thinking and AI

More than 4,000 young people from Poland,

Estonia, Latvia and Lithuania joined our

2023 #Skills4Future hybrid event hosted

byPolish influencer, Natalia Sisik.

The theme of the 2023 event was co-

operation, creativity, communication

andcritical thinking – and the role of AI

inyouth development.

We invited 17 experts and business

practitioners to talk about each skill

andshare their experiences, including

the role of personal branding in the job

market and combining creativity with

newtechnologies.

During the event, Natalia presented the

results of a survey carried out on behalf of

Coca-Cola HBC in Poland. These showed

that 3 in 4 young people believe that using

modern technologies will translate into

theirfuture in the labour market.

Cumulative number of young people trained

through #YouthEmpowered since 2017

200,000

400,000

600,000

800,000

1,000,000

2017 2018 2019 2020 2021 2022 2023 2025

goal

21,401

85,812

203,865

338,413

548,835

794,943

1,000,000

944,948

Growth pillars continued

Earn our licence to operate

Quotes from participants in Lithuania

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 65

Growth pillars continued

Earn our licence to operate

The Coca-Cola HBC Foundation

We were proud to launch The Coca-Cola

HBC Foundation in December, and donated

€10million to support communities in2024.

We have always had a strong focus on

operating sustainably, and a long tradition

ofgiving back to the communities we are

apart of.

We have identified a number of critical

areaswhere we will prioritise our support.

These include:

• natural disaster relief;

• packaging and waste management;

• corporate citizenship; and

• empowering youth and women.

The new foundation brings clear focus

toourwork and empowers us to make

decisions quickly to take action where

itismost needed.

Sustainable

sourcing

We are committed to sourcing 100%

of our key ingredients in line with the

Principles for Sustainable Agriculture

asset out by The Coca-Cola Company.

In 2023, we reached 79%. Of specific importance

to achieving our biodiversity goal are the principles

on conservation of forests, conservation of

natural habitats, biodiversity and ecosystems,

soilmanagement and agrochemical management.

Overall, the principles protect and support

biodiversity and ecosystems, uphold human

and workplace rights, ensure animal health

andwelfare, and help build thriving communities.

They apply to farm-level production and form

the basis for our continued engagement with

Tier 1 suppliers to ensure sustainable long-

termsupplywith lower environmental impact.

Read more on p25 to 27

Nutrition

As part of the Coca-Cola System, we

want to deliver great-tasting soft drinks

that support balanced diets. We do this

in five strategic ways:

• Less sugar, more choices: We have committed

to reduce calories per 100ml of sparkling

soft drinks by 25% between 2015 and 2025

across all our markets. By the end of 2023,

we had reduced calories by 19% per 100ml of

sparkling soft drinks. To reach our commitment,

wefocuson growing zero formulations such

as Coca-Cola Zero Sugar Zero Caffeine

and new flavour creations within the Fanta

andSchweppes brands.

• New and different drinks: We are responding

tochanging consumer preferences by

innovating our recipes and pack sizes,

offering more choice. New zero formulations

across our brands help us drive growth and

show how constant innovation is keeping

us at the forefront of consumer choice and

customer preference. In 2023 we launched

nectars reformulation for five mono fruit

flavours with added functionalities and

reduced sugar by 30%. We also launched new

recipes for Schweppes Bitter Lemon Zero

and Kinley TonicWater in local markets with

lower sugarand better taste. We expanded

PinkLemonade, the first zero sugar drink

inourLemonade range.

• Informed decisions: We provide clear and

transparent nutrition information about what’s

inside our drinks, such as the Guideline Daily

Amount (GDA) and traffic-light labels on our

core sparkling drinks in 22 markets.

• No marketing targeting children: We commit

to not market any of our drinks directly to

children under 13 and do not offer any soft

drinks in primary schools.

• Promoting low- and no-sugar choices: We

are promoting Coke Zero Sugar as our ‘hero’ in

marketing campaigns encouraging more people

to choose low- and zero-sugar drinks.

Read more on p28

Working with our communities

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 66

Biodiversity

We are serious about making a net positiveimpact

on biodiversity in critical areas of our operations

and supply chain by 2040 and eliminating

deforestation in our supply chain by 2025.

Toreach this objective, we joined the Science

Based Targets Network (SBTN) to focus our

efforts on the relevant actions so both nature

andbusiness can thrive.

In 2023, we undertook the mapping and

materiality assessment on biodiversity across

our value chain to help us set targets in areas that

matter the most and to measure our progress.

This assessment shows that the biggest impact

on biodiversity comes from land conversion and

water withdrawal from our upstream activities,

mainly from agricultural suppliers.

We will focus in 2024 on collaborating with our

suppliers to develop plans to address these two

risk areas and develop an appropriate monitoring

system to measure deforestation at supplierlevel.

In our direct operations, we currently report on

seven manufacturing sites adjacent to critical

to biodiversity areas. We have initiated a few

biodiversity projects in some of these sites.

Wewill now learn from these and take action

inallthe critical areas by following the official

SBTNguidance and engaging with our business

partners and the local communities.

In 2024, we will also start to implement the

recommendations of the Taskforce on

Nature-related Financial disclosures (TNFD)

recommendations.

Growth pillars continued

Earn our licence to operate

Serbia: Creating scenic hiking trails

Visitors to Lake Vlasina, an area of extraordinary biodiversity

and beauty in south-east Serbia, can now use 47 kilometres

of new hiking trails. We partnered with the United Nations

Development Programme (UNDP), the Ministry for the

Development of Underdeveloped Municipalities and the

Municipality of Surdulica to create the new trail. Our natural

spring water plant is located in Vlasina – an area of national

significance due to its endemic flora and fauna, unforgettable

gastronomy and rich historical and cultural heritage.

Ourambition is to establish Vlasina as a regional must-see

tourist destination, while supporting local businesses and

our neighbours to grow in a sustainable way. Visitors can

now learn about the lake and biodiversity along the trail or by

visiting digital trails on the Serbia Trails portal. Vlasina hosted

the nation’s largest hiking event, ROSA Hiking Day, when the

trail opened in September 2023. New waste bins to separate

packaging for recycling were also installed along the Vlasina

Lake and in restaurants and cafes, inpartnership with local

waste management operator Sekopak.

Poland: Renovating a

mineral water spring for

local communities in Tylicz

Tourists visiting the natural water spring in

Tylicz, Poland, can now enjoy its therapeutic

qualities even more after a joint project

helped to bring itback to life. Our local

team worked with Multivita and municipal

employees to unblock the flow and build a

new casing for the water spring. These both

help improve access to the water spring,

making the region more attractive to visitors.

Caring for local biodiversity

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 67

Growth pillars continued

Earn our licence to operate

Hungary: Zero Waste

Tisza River project

Coca-Cola Hungary joined forces with

the water management authorities and

civil society to help clean up Hungary’s

second largest river, the Tisza. More than

100 tonnes of waste have been removed

since 2019 as part of the initiative.

GPS-based tracking maps the amount

of plastic waste and the path it takes to

help find solutions for the future. A lot has

been done to improve waste collection

and treatment in Subcarpathia and a

new water purifying container has been

developed to make clean water more

accessible to the local population. This

initiative brings together the Plastic Cup

team and the General Directorate of Water

Management(OVF)with support from

TheCoca-Cola Foundation.

Priorities in2024

• Evolve our sustainability strategy with 2030commitments.

• Update our NetZeroby40 roadmap incorporating our Egypt

operations and have FLAG targets approved.

• Continue decarbonisation of our business in all three scopes.

• Support the roll out of national DRS in EU markets and

advance our collection model in Nigeria.

• Continue to innovate in sustainable packagingformats.

• Strengthen collaboration across ESG areas with our

customers and suppliers.

• Get ready for compliance with new EU ESG reporting

frameworks.

• Continue on SBTN roadmap to define our action plan for

biodiversity hotspots.

UN Sustainable Development Goals

Our initiatives in communities help advance theglobal

objectives of good health and wellbeing, and sustainable cities

and communities. Our initiatives to empower youthandwomen

contribute to the goals for quality education, decent work

and economic growth, sustainable cities and communities,

and partnerships. Our initiatives regarding water stewardship,

emissions reduction and waste reduction aid global

progress towards the SDGs for clean water and sanitation,

andclimateaction.

Caring for local biodiversity

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 68

rganic

volume growth (%)

2020

2021

2022

2023

-9

-6

-3

-4.6

14.0

-1.5

1.7

Organic

revenue per case growth (%)

2020

2021 2022 2023

-5

-4.1

5.8

15.9

15.0

Organic

revenue growth (%)

2020

2021 2022 2023

-10

-5

-8.5

20.6

14.2

16.9

Key performance indicators

We measure performance against

our strategic objectives using

specific key performance indicators

(KPIs). These KPIs allow us, and our

stakeholders, to track our progress

in delivering on our targets.

These are also the financial and

operationalmilestones which

we focus onin implementing our

Growth Story 2025strategy.

Growth pillars

Leverage our unique

24/7 portfolio

Win in the marketplace

How we measure our progress

Volume is measured in unit cases, where one

unit case represents 5.678 litres. We grow

volume as we expand per-capita consumption

of our products and expand into new markets or

categories. Since the start of 2022 we measure

volume growth on an organic basis

What happened in the year

Volumes increased by 1.7% on an organic

basis, led by our strategic priority categories

of Sparkling, Energy and Coffee, which offset a

decline in Stills, as a result of a conscious decision

to drive profitable growth.

Link to remuneration

Revenue growth is used to assess business

performance for the purpose of annual

Management Incentive Plan (MIP) bonus awards,

and volume is a key component of revenue.

Full description of the MIP p168

How we measure our progress

We measure revenues per case and revenues

on an organic basis to allow better focus on the

underlying performance of the business. We grow

organic revenue per case through pricing and

improving mix.

What happened in the year

Organic revenue per case grew by 15.0%, as

pricing and revenue growth management actions

in all markets drove improvements throughout the

year. Organic revenue grew by 16.9%.

Link to remuneration

Revenue growth is used to assess business

performance for the purpose of our MIP awards.

Full description of the MIP p168

1. For details of APMs, refer to ‘Definitions and reconciliations of alternative performance measures (APMs)’ on pages 295 to 301.

Tracking our progress

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 69

Comparable EBIT

(€m)

2020 2021 2022 2023

200

400

600

800

1,000

1,200

672.3

831.0

929.7

1,083.8

Comparable EBIT

margin (%)

2020 2021 2022 2023

11.0

11.6

10.1

10.6

Capex

as percentage of NSR (%)

2020 2021 2022 2023

7.6

7.5

6.4

6.6

ROIC

(%)

2020 2021 2022 2023

11.1

14.8

14.1

16.4

Key performance indicators

Growth pillars

Fuel growth through

competitiveness

&investment

How we measure our progress

We measure this by comparable EBIT and

comparable EBIT margin progress. We generate

positive operational leverage as we grow revenues

on our efficient cost base. Using a comparable

measure allows us to adjust for one-off items which

impact comparability of performance year on year.

What happened in the year

Comparable EBIT grew by 16.6% and by 17.7%

on an organic basis. Comparable EBIT margins

improved 10 basis points on an organic basis.

Link to remuneration

Comparable EBIT is used to assess business

performance for the purpose of our MIP awards.

Full description of the MIP p168

How we measure our progress

Capex

as percentage of NSR (%); ROIC

(%)

We measure capital expenditure (capex) as a

percentage of net sales revenue (NSR), and ROIC

(return on invested capital), to ensure prudent capital

allocation and efficient working capital management.

Disciplined investment supports our growth.

What happened in the year

Capex as a percentage of revenue was 6.6%,

towards the low end of our targeted range of 6.5%

to 7.5%, reflecting the strong level of revenue

growth achieved in the year.

ROIC expanded by 230 basis points to 16.4%,

driven by higher profit, partly offset by higher

invested capital.

Link to remuneration

ROIC is given a 42.5% weighting in the assessment

of performance conditions used to determine

long-term Performance Share Plan (PSP) awards.

Full description of the MIP p168

1. For details of APMs, refer to ‘Definitions and reconciliations of alternative performance measures (APMs)’ on pages 295 to 301.

Tracking our progress continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 70

Employee engagement score (%)

Global top

decile norm

Employee

engagement

2022 2023

100

Percentage of managers that are women (%)

2025 Target Women

managers

41.8

40.2

2022 2023

Key performance indicators

Growth pillars

Cultivate the

potential of

ourpeople

How we measure our progress

We conduct an engagement survey with an

independent third party and measure our results

against the norm for companies which perform

highly on this metric.

What happened in the year

Our employee engagement score increased,

getting closer to our ambition of the global

top-decile norm.

Link to remuneration

Maintaining our high engagement score is one

of the CEO’s individual performance metrics.

These are used along with business performance

measures to determine the CEO’s annual MIP

bonus award.

Full description of the MIP p168

How we measure our progress

One of our Mission 2025 commitments is to have

at least 50% of management positions held by

women by 2025.

What happened in the year

In 2023 women held 41.8% of management

roles,compared with 40.2% in 2022. Our efforts

to create a more diverse work environment

wererecognised externally in 2023 with

11diversity-related awards.

Full description of the MIP p168

Tracking our progress continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 71

Key performance indicators

Tracking our progress continued

Sustainability areas

andmaterial issues

UN’s Sustainable Development Goals (SDGs)

andtheir targets

2025

commitments

2023

performance Status

Climate and

renewable energy

• Climate change

• Socio-economic impact

7.2

7.3

9.4 11.6

30%

reduction in carbon ratio in

directoperations

44%

12.2 13.1

50%

increase in energy-efficient

coolers to half of our coolers in

the market

55%

50%

of our total energy from

renewable and clean

sources

55%

100%

total electricity used in the EU

and Switzerland from renewable

and clean

sources

100%

Mission 2025 – our sustainabilitycommitments

Sustainability is integrated into every aspect of

our business. It is fundamental to our business

strategy, which aims to create and share value with

all of ourstakeholders.

Our Mission 2025 approach is based on our

stakeholder materiality matrix and is fully aligned

with the United Nations Sustainable Development

Goals (SDGs) and their targets. Our six key focus

areas reflect our value chain: reducing emissions;

water reduction and stewardship; packaging

(World Without Waste); ingredient sourcing;

nutrition; and our people and communities.

The table provides data on the progress of

eachofthe six sustainability pillars.

Key to performance status

Each of the Mission 2025 commitments is broken

down into a series of annual targets that need to

be met in order to be fully on track with our 2025

goal. The colour coding below reflects the current

status in relation to the desired position atthis

point in time on the trajectory towards 2025

andour agreed action plans, i.e.:

on track

progress made but acceleration required

no significant progress

Growth pillars

Earn our licence

tooperate

How we measure our progress

Progress on Mission 2025 as well as progress

towards our NetZeroby40 ambition.

What happened in the year

We made progress against most areas of our

commitments; however, we need to accelerate

our improvement in packaging and focus more

on water reduction and health and safety.

Link to remuneration

Our efforts and ambitions are long term

and cumulative, therefore greenhouse gas

reduction is used to determine long-term PSP

awards. Greenhouse gas reductions have a 15%

weighting in PSP determinations.

The benefit of this KPI is that it is quantifiable,

and several of our Mission 2025 commitments

feed into its progress.

Read more on p168

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 72

Tracking our progress continued

Sustainability areas

andmaterial issues

UN’s Sustainable Development Goals (SDGs)

andtheir targets

2025

commitments

2023

performance Status

Water reduction and

stewardship

• Water stewardship

• Socio-economic impact

• Biodiversity

6.1

6.4

6.5

6.6

9.4 11.6

20%

water reduction in plants located

in water-risk areas (water priority

locations)

Impact from Russian operations. Further

implementation of successful practices

and innovations for those locations is

planned.

12.1

12.2

12.4

15.1 17.17

100%

help secure water availability for

all our communities in water-risk

areas (water priority locations)

63%

World Without Waste

• Packaging and waste

management

• Socio-economic impact

8.4 9.4 11.6

75%

help collect the equivalent of 75%

of our primary packaging

56%

12.1

12.2

12.5

14.1 17.17

35%

of total PET used from recycled

PET and/or PET from renewable

material

16%

Significant progress from 10.5% last year.

Annualised effect of Romania and Ireland

initiatives will be reflected in 2024 results.

100%

of consumer packaging to be

recyclable

100%

Ingredient sourcing

• Product quality

• Human rights, diversity

and inclusion

• Socio-economic impact

• Sustainable sourcing

8.3

8.8

9.4 12.1

12.2

12.4

12.6

12.7

100%

of our key agricultural ingredients

sourced in line with sustainable

agricultural principles

79%

Impact of suppliers in emerging countries

that are still in the process of acquiring

the certifications.

13.1

Nutrition

• Product quality

• Nutrition

• Responsible marketing

3.4 12.8

25%

reduce calories per 100ml

ofsparkling soft drinks

(allCCHBCcountries)

19%

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 73

Sustainability areas

andmaterial issues

UN’s Sustainable Development Goals (SDGs)

andtheir targets

2025

commitments

2023

performance Status

Our people and

communities

• Human rights, diversity

and inclusion

• Employee wellbeing and

engagement

• Corporate citizenship

• Packaging and waste

management

• Socio-economic impact

3.4

3.6

4.3

4.4

5.5

10%

community participants

infirst-time managers’

development programmes

8.5

8.6

8.8

10.2

10.4

11.6

train one million young people

through #YouthEmpowered

944,948

Cumulative number 2017-2023;

2023-only number is 150,005.

12.2

12.4

16.7 17.16

17.17

engage in 20 zero-waste

partnerships (city and/ or coast)

10%

of employees take part in

volunteering initiatives

11%

ZERO

target zero fatalities among

ourworkforce

50%

reduced lost time accident rate

per100 FTE

33%

The main causes: falls / slips / trips, road

accidents and contact with machinery

and tools.

50%

of managers are women

42%

Female retention, capability building,

balanced external hiring, country specific

targets and plans, see page49.

Note: The 17 SDGs are an urgent call for action by all countries – developed and developing – in a global partnership. Each of the 17 goals has very specific targets and

in the number references above we disclose the SDG targets relevant for our business, where we contribute positively to the UN SDG agenda, for example, 3. 4, 8.5.

1. Baseline 2017. Egypt is excluded as it was not foreseen in the baseline year nor in the target year.

2. Clean source means CHP using natural gas.

3. Technical recyclability by design.

4. Baseline 2015.

5. Supported by The Coca-Cola Foundation

Tracking our progress continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 74

Chief Financial Officer’s letter

Dear Stakeholder,

It has been a privilege to be CFO of such a

dynamic, high-growth business, with great people,

which has delivered great results for the third

year running, despite significant headwinds. 2023

comparable EBIT was €1,084 million, exceeding

€1billion for the first time in our history. Not only

have we achieved record financial results and

invested in the business to drive future growth,

but we have also made strides in our sustainability

journey: creating value and strengthening our

resilience, doing the right thing for our people

andthe planet, and strengthening our right

towinwith customers and consumers.

Our record profitability was driven by our revenue

growth management initiatives, together with

effective actions on input cost inflation and our

focus on cost control. This significant profit

delivery, aided by effective management of our

finance costs, capturing the spread between our

largely fixed cost of borrowing and the benefit of

rising interest rates on our cash deposits, led our

comparable EPS to grow by 21.8%.

Converting our operational profitability to free

cash flow, while maintaining our future-focused

investment profile, is a key area for CCH. We

managed that very successfully, achieving another

year of record free cash flow of €712 million,

which helped reduce net debt to €1.6 billion. This

enabled us to increase our returns to shareholders

and initiate a €400 million, two-year share buyback

programme, consistent with our capital allocation

priorities and demonstrating our confidence in

future growth. And we further expanded ROIC

torecord levels, despite the challenges we faced.

All of these results would not have been possible

without our people and their commitment and

dedication to our customers and consumers. We

are actively nurturing our talent pipeline, especially

in the broader finance community, providing them

with opportunities for growth and strengthening

our succession options across all levels of the

organisation. The appointment of my successor,

Anastasis, from this talent pool, is testament to our

investment in our people, ensuring the future of CCH.

When it comes to funding our sustainability agenda,

our approach is to integrate sustainability projects

in growth-orientated initiatives. For example, as we

have invested in our route-to-market capabilities with

a wider network of coolers in customer premises,

we surpassed our target of ensuring over 50% of

our installed base was energy efficient by June, 18

months ahead of schedule. By the end of the year,

that figure was 55%, excluding Egypt. We have also

been investing in packaging circularity, more on this

inEarn our licence to operate on pages 60 to 62.

1. For details of APMs refer to ‘Definitions and reconciliations of

alternative performance measures (APMs) on pages295 to 301

For the first time, we exceeded

€10 billion in sales and €1 billion

in comparable EBIT. Not only

have we achieved record financial

results, but we’ve accelerated

our investment for the future

– to strengthen our customer

centricity, to enhance our

execution capabilities and to do

the right thing for our planet.”

our investment for the future

– to strengthen our customer

centricity, to enhance our

execution capabilities and to do

the right thing for our planet.”

Disciplined execution powers another year

ofstrong growth

Mid-term outlook from 2024 onwards

Organic¹ revenue growth

+6-7%

Organic¹ EBIT margin growth

+20-40bps

• Continued focus on ROIC expansion

• CAPEX 6.5-7.5% of revenue

• Growing free cash flow to support capital

allocation priorities

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 75

Chief Financial Officer’s letter continued

My focus will be continuing to deliver

our growth story and the mid-term

targets we shared at our investor

day in May. I look forward to working

more closely with Zoran, Naya and

the other ELT members to ensure we

continue to focus on disciplined capital

allocation and on organic growth.”

Anastasis Stamoulis

Incoming Chief Financial Officer from 1 May 2024

Anastasis has been with CCH for 16 years and

has held several senior financial positions,

including CFO in our Baltic, Bulgarian and Italian

operations. He has also held senior Group roles

such as Group Financial Controller, Head of Finance

Operations, and Head of Strategic Finance and

Financial Planning and Analysis. Before joining

CCH, he spent seven years in senior financial

positions in the automotive industry. He is a FCMA

CGMA Fellow of the UK Chartered Institute of

Management Accountants and he holds an MBA

in Finance and a BS in marketing from Golden Gate

University in San Francisco, USA.

What moments were opened up for you

in 2023?

For me, 2023 was about opening up more moments

to think of our customers and the services we offer

as a finance team. In response to all the changes

in our business, for example our expanded 24/7

portfolio including the acquisition of Finlandia,

we have developed an elevated way of working to

support our commercial partners. I am incredibly

proud of our cross-functional teams, their resilience,

agility and collaboration with customers. And I am

incredibly proud that we delivered another strong

year of record profits and free cash flow.

I visited our Nigerian business in May, and

wasimpressed by the level of excitement, the

dedication and commitment of our people there.

Their passion, resilience and great long-standing

relationships with customers, meant that we were

able to navigate the currency devaluation and the

cash crisis in the country. It is such challenges that

open up the opportunities to show how strong

and resilient our teams are, and this extends

across all functions driving CCH forward.

How would you describe your

leadershipstyle?

In my view, leadership style is something that evolves

over your career. I’ve been very fortunate, both while

in CCH and prior, to have experienced a diverse

range of business environments and industries. Over

the last 16 years, I have come across many leaders

and talents who have provided me with great insights

across the breadth of the business, and who have

made an impact on my development as a leader.

I would say my style is transparent and accessible,

letting my peers clearly know my views, and I prefer to

tackle the issues with a hands-on approach. Ibelieve

in being very present in all aspects of the business

in addition to the finance function. I am fully inspired

by our leadership values, and I aspire living them

through my daily interactions. One thing is certain

– that I continue to learn and evolve every day.

What will be high on your agenda in 2024?

First, we have a very solid base to build upon and

aproven track record of delivering our strategy.

Myfocus will be continuing to deliver our growth

story and the mid-term targets we shared at our

investor day in May. I look forward to working more

closely with Zoran, Naya and the other Executive

Leadership Team (ELT) members to ensure

we continue to focus on our capital allocation

priorities driving sustainable growth. Maintaining

an efficient balance sheet, while delivering more

value to our shareholders, is high on my agenda.

Finally, a clear priority for me is investing in our talent

pipeline and key people. By developing the right

capabilities for the finance function of the future,

such as embracing acceleration of digitialsation and

automation offinance, we will open up moments

for our people tounleash their full potential.

Introducing our new CFO, Anastasis Stamoulis

Q&A

In September, we published our Green Finance Report

outlining our wider plans for creating a sustainable

future, detailing the proceeds allocation and impact

of our first Coca-Cola HBC green bond issued in

September 2022. I am proud of our commitment to

allocating funds to projects that make a real difference

to the environment, allowing us to grow responsibly

and continue to deliver our products sustainably.

Looking ahead

While we expect the macroeconomic and

geopolitical environment to remain challenging,

we have high confidence in our 24/7 portfolio

and the opportunities for growth in our diverse

markets, amplified by our bespoke capabilities,

and, above all, the talent of our people.

At our full-year results on 14 February 2024, we

set out our ambitions for the year, and fully expect

tomake progress against the medium-term targets

we set out at our capital markets event inMay.

I know that when I leave Coca-Cola HBC in May

2024, the Company will be in a strong position

and will be in experienced hands with Anastasis

Stamoulis, the incoming CFO. Anastasis has a

proven track record and broad experience gained

from 16 years at the Company where, through

his development journey, he held several senior

financial positions.

I wish Anastasis and all my talented colleagues

at Coca-Cola HBC, as well as our customers, the

Coca-Cola Company, the Monster Energy team,

and other valued stakeholders my best wishes and

heartfelt expectation that we will continue to open

up moments to refresh us allinthe years ahead.

Ben Almanzar

Chief Financial Officer

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 76

Group financial review

Income statement

2023 2022

% change

reported

Volume (m unit cases) 2,835.5 2,711.8 4.6

Net sales revenue (€m) 10,184.0 9,198.4 10.7

Net sales revenue per unit case (€) 3.59 3.39 5.9

Operating profit (EBIT)

(€m) 953.6 703.8 35.5

Comparable EBIT

(€m) 1,083.8 929.7 16.6

EBIT margin (%) 9.4 7.7 170bps

Comparable EBIT margin

(%) 10.6 10.1 50bps

Net profit

(€m) 636.5 415.4 53.2

Comparable net profit

1,3

(€m) 764.2 624.9 22.3

Comparable basis earnings per share

(€) 2.078 1.706 21.8

Percentage changes are calculated on precise numbers.

1. For details of APMs, refer to ‘Definitions and reconciliations of alternative performance measures (APMs)’ on pages 295 to 301.

2. Refer to the consolidated income statement.

3. Net profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.

Focused execution of our 24/7 strategy

delivered strong organic

growth

In 2023, our organic revenue growth was

16.9%(10.7% on a reported basis), a very strong

performance given continued cost inflation, and the

global macroeconomic and geopolitical challenges.

Against this backdrop, achieving organic volume

growth of 1.7% (4.6% on a reported basis) across

the business was a very positive result, and with an

encouraging trend in the fourth quarter, where we

saw organic volumes up 6.8%.

Organic revenue per case grew 15.0% (5.9% on

a reported basis). Of this, pricing continued to

be the largest contributor, accounting for the

majority of the gain. Packageand category mix

were also accretive, with continued improvements

in our single-servemix.

2023’s organic revenue performance followed

14.2% organic revenue growth in 2022, and over

20% in2021.

Major contributors to these results were a good

conversion of our revenue growth management

initiatives, together with effective mitigation

actions on input cost inflation, albeit partially

offset by transactional FX impacts. In addition,

we delivered modest improvement to operating

costs as a percentage of revenue.

Operating profit, margins and cost control

Comparable gross profit grew by 13.2%, with

gross profit margins up 80 basis points to 35.0%.

Cost of goods sold (COGS) inflation was again

a material headwind for the business in 2023,

reflecting inflation in many commodities as

well as increased costs as a result of currency

devaluations, particularly in Nigeria. As a result,

improving our price and mix was an important

priority for the business in 2023. This we

didsuccessfully.

While operating costs increased overall, reflecting

the impact of inflation and investments in our

capabilities across the Group, as a percentage

of revenue they decreased by 10 basis points to

24.4% on a comparable basis. We benefitted from

good operational leverage while we increased

marketing spend and added route-to-market

capabilities, seizing opportunities across our

markets while maintaining tight control of non-

essential costs.

Organic EBIT up 17.7%

Comparable EBIT increased by 16.6% on a

reported basis to €1,083.8 million, exceeding

€1 billion for the first time in our history,

principally driven by organic profit growth across

our markets, only partially offset by negative

foreign currency movements. On an organic

basis, comparable EBIT grew 17.7% in the year.

Operating profit grew 35.5% to €953.6 million.

The comparable EBIT margin was 10.6%, up 50

basis points on a reported basis, and 10 basis

points on an organic basis, benefitting from

operational leverage.

On a reported basis, our average comparable EBIT

growth was more than 10% since 2019, showing

our sustained, long-term focus on increasing

the financial fitness of this business and creating

shareholder value.

We saw a negative translational and transactional

currency impact in 2023, driven by the depreciation

of the Nigerian naira, Russian rouble and

Egyptianpound.

Net impairment losses were €16.9 million lower,

reflecting a €109.4 million charge in Egypt, more

than offset by the non-repeat of the charges

taken in 2022.

Net finance costs were €34.4 million lower than

the prior year at €48.3 million, driven mainly by

higher finance income as a result of increased

interest on cash deposits and stable finance costs

on fixed rate borrowings.

Comparable taxes amounted to €277.1 million,

representing a comparable tax rate of 27%,

atthetop end of our guided range of 25% to 27%.

Comparable net profit grew 22.3% to €764.2

million. Reported net profit increased by 53.2%

to€636.5million.

Comparable basic EPS grew 21.8%, supported by

strong profit delivery and effective management

of finance costs, capturing the spread between

our largely fixed cost of borrowing and the benefit

of rising interest rates on our cash deposits.

Organic revenue growth year on year

16.9%

Comparable EBIT

€1,083.8m

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 77

Group financial review continued

Balance sheet

2023

€ million

2022

€ million

Assets

Total non-current assets 5,969.4 6,139.5

Total current assets 3,910.2 3,716.2

Total assets 9,879.6 9,855.7

Liabilities

Total current liabilities 3,846.3 3,006.7

Total non-current liabilities 2,846.6 3,463.4

Total liabilities 6,692.9 6,470.1

Equity

Owners of the parent 3,092.8 3,282.3

Non-controlling interests 93.9 103.3

Total equity 3,186.7 3,385.6

Total equity and liabilities 9,879.6 9,855.7

Strong balance sheet to drive shareholder returns

Our balance sheet remains very strong and we continue to manage it prudently. It is a source of

strength and flexibility, providing ample capacity for investments both organically and through M&A.

Total non-current assets decreased by €170.1 million during 2023, primarily driven by foreign currency

translation, which was partially offset by the Group’s continued investment in property, plant and

equipment. Net current assets decreased by €645.6 million, while non-current liabilities decreased

by €616.8 million during 2023 respectively, mainly due to the reclassification of the current portion of

borrowings from non-current liabilities to current liabilities.

Cash flow

2023

€ million

2022

€ million

Cash flow from operating activities 1,386.7 1,234.6

Payments for purchases of property, plant and equipment

(623.0) (531.8)

Proceeds from sales of property, plant and equipment 7.2 7.5

Principal repayments of lease obligations (59.1) (65.2)

Free cash flow 711.8 645.1

1. Payments for purchases of property, plant and equipment for 2023 include €12.3 million (2022: €8.4 million) relating to repayment of

borrowings undertaken to finance the purchase of production equipment by the Group’s subsidiary in Nigeria, classified as ‘Repayments of

borrowings’ in the consolidated cash flow statement.

Record investment in sustainable growth

Capital expenditure increased by €85.4 million

to €674.9 million as we continued to invest in

developing our production facilities, renovating

and expanding our cooler footprint, and driving

other strategic opportunities that help deliver our

sustainability agenda. We added seven new lines,

three of those in the high-growth Energy category.

We also increased our footprint of energy-efficient

coolers to over 55% of our fleet, excluding Egypt,

helping support broader market presence and

drive single-serve growth, and invested in our

sustainability goals, including rPET production

andpackaging solutions.

Capex as a percentage of revenue was 6.6%,

towards the low end of our targeted range of 6.5%

to7.5%, reflecting the strong level of revenue growth

achieved in the year.

Continued strong ROIC performance

ROIC is one our most important KPIs. ROIC

expanded by 230 basis points to 16.4%, driven by

higher profit, partly offset by higher invested capital

– a record ROIC performance even as we managed

through another challenging year.

Free cash flow

€711.8 m

ROIC

16.4%

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 78

Total tax by category in 2023 (%)

Corporate income tax 55.4%

Withholding tax 2.3%

Payroll taxes 34.2%

VAT (cost) 2.8%

Environmental taxes 0.1%

Other taxes 5.2%

Group financial review continued

Borrowings

At the close of the year, total borrowings were

€3,424.5 million and net debt to EBITDA was 1.1x,

even after completing the acquisition of Finlandia

in November. The Group is well insulated from

interest rate exposure by having most of our debt

on fixed rates.

After the publication of our 2023 financial results,

and before the signing of this year’s Integrated

Annual Report, we took advantage of attractive

financial markets to undertake a new bond

financing, effectively pre-financing a significant

bond due for repayment in the second half of

the year. This was successfully completed on

attractive terms.

Capital allocation priorities

Our priorities for capital allocation are very clear.

To be the leading 24/7 beverage partner, we make

thoughtful choices, ensuring that we deploy

capital efficiently and effectively in the service

ofprofitable growth.

For example, we continue to invest in acquisitions

that further improve our portfolio, or our capabilities,

particularly around strengthening our route to

market for customers and consumers. Finlandia

was a good example of a targeted portfolio

enhancement, and we remain open to seizing

theright opportunities as they come up.

Our capital discipline has also allowed us to drive

higher returns to shareholders. In November,

welaunched a €400 million share buyback

programme, reflecting the Board’s long-term

confidence inourbusiness performance, the

prudent financialmanagement of our balance

sheet, andour commitment to return capital

toshareholders responsibly.

Dividend

The Board of Directors has proposed a dividend of

€0.93 per share, a 19.2% increase from the €0.78

per share dividend paid in 2022, maintaining the

Group’s progressive dividend policy and reflecting

the strength of our balance sheet and healthy

liquidity position, The payout ratio is 45%, within

the target payout ratio of 40 to 50%. The dividend

payment will be subject to shareholders’ approval

at our Annual General Meeting.

Taxes we contribute to

ourcommunities

Coca-Cola HBC attributes the utmost

importance of earning trust in all tax matters.

Specifically, we stand firmly behind the principle

of paying relevant taxes in the countries where

value is created and ensure that we are fully

compliant, not only with the letter of tax laws

and regulations, across all jurisdictions we

operate in, but with the spirit as well. In addition,

we commit to being open and transparent with

tax authorities about the Group’s tax affairs

andto disclose relevant information to enable

tax authorities to carry out their reviews

effectively, efficiently and without unwarranted

delays. We support the communities in the

countries where we operate directly, by creating

economic wealth, and indirectly, by paying our

fair share of taxes.

Financial risk management

The Group’s activities expose it to a variety of

financial risks: market risk (including currency

risk, interest rate risk and commodity price risk),

credit risk, liquidity risk and capital risk. There have

been no material changes in the risk management

policies since the previous year end.

The Group maintains its healthy liquidity position

and is able to meet its liabilities as they fall due.

As at 31 December 2023, the Group had net debt

of €1.6 billion. In addition, at 31 December 2023, the

Group had cash and cash equivalents of €1.3 billion,

an undrawn revolving credit facility of €800 million,

anuncommitted money market loan agreement

of €200 million, as well as €0.8 billion available out

of the €1.0 billion commercial paper programme.

None of our debt facilities are subject to any

financial covenants that would impact the Group’s

liquidity or access to capital. In terms of foreign

exchange risk, the Group is exposed to exchange

rate fluctuation of the Euro versus the US dollar

and the local currency of each country of our

operations. Our risk management strategy

involves hedging transactional exposures arising

from currency fluctuations, with available financial

instruments on a 12-month rolling basis.

Bonds

2,887.3

Commercial paper

211.0

Leases

210.1

Other 116.1

2023 borrowing structure (€m)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 79

Group financial review continued

Segment highlights

Organic volume growth

-2.4%

Organic revenue per case growth

15.1%

Established markets

In the Established segment, organic revenues

grew by12.3%.

Organic revenue per case was up 15.1%, driven by

price increases weighted to the first half. Positive

category and package mix also helped. We continued

to focus on single-serve activation, resulting in a 320

basis point improvement in single-serve mix.

Established markets volume declined by 2.4%,

reflecting tough comparatives particularly in the

middle of the year, but with an improving trend

towards the end of the year. Sparkling volumes

were slightly lower versus the prior year, largely

reflecting comparable growth of over 9% in 2022.

Within Sparkling, Coke Zero and Adult Sparkling

delivered good mid-single digit growth.

Energy volumes expanded by mid-teens despite

very tough comparatives, with good growth in

Monster. Coffee also grew strongly – up mid 20s –

despite lapping strong growth in 2022.

Stills declined by high-single digits, driven by the

Water category, especially impacting Italy, where

we made conscious choices to prioritise profitable

revenue growth.

Greece, as an example, delivered mid-single digit

performance in Sparkling, with high-single digit

growth from Coke Zero and Fanta, and low-double

digit growth from Adult Sparkling. Results were

helped by a prolonged tourist season.

Improving margins while investing in growth has

been a key priority for some of our Established

markets, particularly Italy, and, in 2023 the

Established segment improved organic

comparable EBIT margins by 100 basis points.

Overall, organic comparable EBIT grew 23.0%.

Operating profit grew 22.2%.

2023 2022

% change

reported

% change

organic

Volume (million unit cases) 628.7 643.9 -2.4% -2.4%

Net sales revenue (€ million) 3,358.5 2,974.1 12.9% 12.3%

Operating profit (EBIT) (€ million) 379.2 310.4 22.2%

Comparable EBIT (€ million) 381.1 307.1 24.1% 23.0%

Total taxes (€ million)

163.8 156.3 4.8%

Population (million)

93 93 –

GDP per capita (thousands US$)

43.7 43.5 0.5%

Bottling plants (number) 15 15 –

Employees (number) 6,809 6,392 6.5%

Water footprint (billion litres) 3.913 4.048 -3.3%

Carbon emissions (tonnes) 65,460 67,720 -3.3%

Safety rate (lost time accidents >1 day per 100 employees) 0.55 0.69 -20.3%

1. Total taxes include corporate income tax, withholding tax and deferred tax, as well as social security costs and other taxes that are reflected

as operating expenses; as per IFRS accounts.

2. Data source is IHS Jan 2024 release; GDP refers to ‘GDP, real, harmonised’ in US dollars. 2022 data was updated to reflect the change of

source to IHS.

1. Global exports market refers to the export business

for Finlandiaand Three Cents for the period November

toDecember2023.

Italy

40%

Greece

19%

Republic of Ireland and Northern Ireland

14%

Austria

13%

Switzerland

11%

Cyprus

Global exports

Volume breakdown by country (%)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 80

Group financial review continued

Segment highlights continued

Organic volume growth

-1.7%

Organic revenue per case growth

20.2%

Developing markets

In the Developing segment, revenues were up

over 18%. Revenue per case increased by 20.2%,

driven by pricing initiatives, and positive category

and package mix.

We are focused on growing the share of multi-

packs of single serve and are now reaping the

benefits of this, with a positive contribution from

package mix for the segment as a whole.

Volumes were down 1.7%, but with an improving

trend. The full-year performance largely reflects

cycling very strong growth in 2022.

Across the categories, volume trends were

broadly consistent. In Sparkling, Coke Zero

delivered good growth and Trademark Coke

wasslightly negative – a good outcome given

thevery strong comparatives and underlying

market conditions. Monster also delivered mid-

teens growth. Coffee grew strongly throughout

the year.

In terms of country performance, one highlight

was Poland, where volumes increased by 1.5%,

despite lapping high 2022 comparatives. Sparkling

grew low-single digits, led by double-digit growth

in Coke Zero and Sprite, and an encouraging

performance from Coke Zero Sugar Zero Caffeine

launched in 2023. Like Italy, we made deliberate

choices to focus on profitable growth in Water

atthe expense of volume, with good success.

Developing segment improved organic

comparable EBIT margin by 50 basis points.

Overall, organic comparable EBIT grew 26.9%,

with operational leverage and cost control more

than offsetting input cost inflation. Operating

profit grew 34.9%.

2023 2022

% change

reported

% change

organic

Volume (million unit cases) 471.0 478.8 -1.6% -1.7%

Net sales revenue (€ million) 2,088.6 1,719.7 21.5% 18.2%

Operating profit (EBIT) (€ million) 152.6 113.1 34.9%

Comparable EBIT (€ million) 153.8 115.1 33.6% 26.9%

Total taxes (€ million)

73.4 66.0 11.2%

Population (million)

75 76 -1.3%

GDP per capita (thousands US$)

19.3 19.2 0.5%

Bottling plants (number) 9 9 -

Employees (number) 4,227 4,157 1.7%

Water footprint (billion litres) 3.335 3.557 -6.24%

Carbon emissions (tonnes) 46,255 47,779 -3.2%

Safety rate (lost time accidents >1 day per 100 employees) 0.21 0.46 -54.3%

1. Total taxes include corporate income tax, withholding tax and deferred tax, as well as social security costs and other taxes that are reflected

as operating expenses; as per IFRS accounts.

2. Data source is IHS Jan 2024 release; GDP refers to ‘GDP, real, harmonised’ in US dollars. 2022 data was updated to reflect the change of

source to IHS.

Poland

46%

Hungary

21%

Czech Republic

11%

Baltics

Croatia

Slovakia

Slovenia 2%

Volume breakdown by country (%)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 81

Organic volume growth

4.3%

Organic revenue per case growth

15.0%

Emerging markets

In the Emerging segment, organic revenue grew

by almost 20%, driven by both volume and good

price mix. Revenue per case increased 15.0%,

reflecting proactive actions to manage the impact

of currency devaluation and cost inflation.

Emerging markets volume grew 4.3%. Sparkling

volumes were up by mid-single digits, with good

growth in Nigeria, Ukraine and Egypt. Energy

volume grew strong double digits, and we were

very satisfied with the successful launch of our

position in the category in Egypt.

Still category volumes were broadly unchanged year

on year, despite the substantial price increases in

Water in Egypt during the first half of the year.

In terms of country performance, the volume growth

improvements delivered in Nigeria were positive.

Our results demonstrate the depth of expertise

and strength of our team in the country as they

achieved strong market share gains while tackling

the impact of significant currency devaluation.

Organic comparable EBIT margin was down

80 basis points, reflecting the net effect from

currency headwinds. Overall, organic comparable

EBIT grew 11.7%. Operating profit grew 50.5%

2023 2022

% change

reported

% change

organic

Volume (million unit cases) 1,735.8 1,589.1 9.2% 4.3%

Net sales revenue (€ million) 4,736.9 4,504.6 5.2% 19.9%

Operating profit (EBIT) (€ million) 421.8 280.3 50.5%

Comparable EBIT (€ million) 548.9 507.5 8.2% 11.7%

Total taxes (€ million)

243 185.0 31.4%

Population (million)

571 567 0.7%

GDP per capita (thousands US$)

5.8 5.7 1.8%

Bottling plants (number) 38 38 0.0%

Employees (number) 21,712 22,494 -3.5%

Water footprint (billion litres)

74.650 66.800 11.8%

Carbon emissions (tonnes)

313,452 391,553 -19.9%

Safety rate (lost time accidents >1 day per 100 employees)

0.22 0.26 -15.4%

1. Total taxes include corporate income tax, withholding tax and deferred tax, as well as social security costs and other taxes that are reflected

as operating expenses; as per IFRS accounts.

2. Data source is IHS Jan 2024 release; GDP refers to ‘GDP, real, harmonised’ in US dollars. Population excludes North Macedonia. 2022 data

was updated to reflect the change of source to IHS.

3. 2022 safety and environmental data reported in the 2022 IAR was recalculated to include Egypt.

Nigeria

24%

Russian Federation

21%

Egypt

18%

Romania

11%

Serbia (including the Republic of Kosovo)

Ukraine

Bulgaria

Belarus

Bosnia and Herzegovina

Armenia

Moldova 1%

Volume breakdown by country (%)

Group financial review continued

Segment highlights continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 82

Materiality assessment

The strategic objectives referred to previously have been

determined through a robust materiality assessment.

This process looks in depth at our role in society, specifically the impact we

haveon stakeholders, communities and the environment, as well as their impact

on our own activities. We conduct this assessment at least annually, evaluating

the complex interaction between our business, our stakeholders and the world

at large. Theoutcome is a list of topics that matter most to our stakeholders

andourbusiness, incorporating current and emerging ESG trends.

The topics that matter most

As shown in the matrix opposite, the issues

deemed to be of greater importance, from both an

impact and a financial perspective, are packaging

and waste management, and climate change.

Our 2023 assessment also confirmed the critical

importance of sustainable sourcing, product

quality, and water stewardship. The horizontal axis

shows impact materiality, while the vertical axis

discloses the financial materiality. The size of the

bubble reflects the topic’s prioritisation as defined

by our stakeholders.

The matrix has been reviewed and endorsed by

the Social Responsibility Committee of the Board.

2023 process

Based on the GRI best practices, our materiality

assessment was conducted in four phases:

1) understanding the context to identify a ‘long

list’ of potentially relevant material issues;

2) assessing their impact on society and

environment;

3) assessing their impact on, or importance

to, stakeholders and the business, including

financial impact; and

4) reviewing and validating findings and reporting

priority areas.

In step two and three, we consulted with

approximately 500 internal and external

stakeholders, including customers, wider

consumers, employees, suppliers, community

representatives, governments, non-governmental

organisations, investors, trade associations and

academics. We asked them to identify the topics

they saw as having the greatest impact on people,

society, the economy and the environment over

time, as well as those significantly impacting our

financial performance. We also asked which topics

they wanted us to prioritise in our strategy and plans.

As in previous years, we took an integrated,

inclusive approach, drawing on Group risk

assessments, colleague input across multiple

functions and insights from The Coca-Cola

Company. In applying this rigorous methodology,

we were able to assess impacts both negative

and positive, short- and long-term, intended and

unintended, and reversible or irreversible – all from

the perspective of different stakeholder groups.

We were also able to evaluate the scale, scope,

irremediability and likelihood of each impact

across the value chain – upstream; in our direct

operations; and downstream.

Impact of the issue on environment and society

very highhighmoderate

Corporate

citizenship

Corporate

Governance

Employee

wellbeing and

engagement

Responsible

marketing

Socio-economic

impact

Sustainable

sourcing

Water

stewardship

Climate

change

Packaging

and waste

management

Product

quality

Biodiversity

Food loss

andwaste

Human rights,

diversity and

inclusion

Nutrition

Financial effect of risks deriving from the topic for CCHBC

Economic dimension

Environmental dimension

Social dimension

The size of the bubble reflects

the topic’s prioritisation as

defined by our stakeholders

CCHBC materiality matrix 2023

very high

highmoderate

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 83

What materiality means to our

GrowthStory

The material issues identified are integrated

into our Growth Story 2025 strategy, our

short-, medium-, and long-term goals and our

management of risks and opportunities across

the value chain.

The process also informs our disclosure, including

this Integrated Annual Report, which is aligned

to the International Integrated Reporting

Council’s (IIRC) framework and the Sustainability

Accounting Standards Board (SASB) – see pages

120 to 122. It is prepared in accordance with GRI

Universal Standards (2021), amongst others. The

Executive Leadership Team has responsibility for

integrating our sustainability priorities into our

business strategy and activities. Management

of the potential risks, opportunities and impacts

of our material issues takes place across the

Company and is disclosed throughout this report.

Additional information about our material issues is

included in our GRI Content Index.

Understanding the topics that matter most

to our business and stakeholders enables us

to contribute to wider efforts, such as the UN

Agenda for Sustainable Development and

its Sustainable Development Goals (SDGs)

and the UN Global Compact (see our latest

Communication on Progress UNGC COP Coca-

Cola HBC (https://unglobalcompact.org/what-

is-gc/participants/2263-Coca-Cola-Hellenic)).

Our Mission 2025 sustainability commitments,

our short-, medium-and long-term ESG goals

(including NetZeroby40) and our material issues

are all mapped to the SDGs and their underlying

targets. You can find more about how our material

issues and sustainability commitments link to

the SDGs on pages 72 to 74 of this report and on

our website - Materiality (https://www.coca-

colahellenic.com/en/a-more-sustainable-future/

our-approach/materiality).

Material issue impact in each

step of our value chain: how

significantly each material

topic impacts society and

environment, based on the

scale of the impact, severity

and likelihood

* Includes our direct operations, not only manufacturing plants.

Upstream

Direct

operations

Downstream

Agriculture and

ingredients

Packaging Manufacturing* Distribution

Cold drink

equipment

Customers and

communities

Biodiversity

Climate change

Corporate citizenship

Corporate governance

Socio-economic impact

Employee wellbeing

andengagement

Food loss and waste

Human rights, diversity

and inclusion

Nutrition

Packaging and waste

management

Product quality

Responsible marketing

Sustainable sourcing

Water stewardship

Materiality assessment continued

Key

Low Medium High

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 84

Hearing from our

stakeholders on what

mattersmost

Every year, we bring together (in virtual format)

a group of diverse stakeholders to formally

review our sustainability performance and

to understand their expectations for the

future. In 2023, over 130 representatives,

from customers, industry associations and

academia, to non-governmental organisations,

policy makers and peer companies – and 25

countries – came together under the theme,

Water Regeneration – partnering to strengthen

communities’ resilience and drive economic

growth. This is a prominent ESG risk that

touches every aspect of our business and

is central to our sustainability strategy and

Mission 2025 commitments.

The theme was covered in the context of

climate resilience, economic growth and the

wellbeing of people. Stakeholders proposed

collaborative ideas and collective actions

that could accelerate progress towards a

water-resilient future, identifying levers for

change; tapping into the power of partnerships

and collaboration; and scaling impactful

interventions collectively.

The common message was that water is a topic

that requires a holistic, transboundary and

multi-stakeholder approach. To address and

balance complex challenges between water,

agriculture, climate and biodiversity requires us

to step uppartner engagement at international

and locallevels.

Specific recommendations from

stakeholdersincluded:

• mobilising local resources and enhancing

community engagement in water solutions;

• catalysing and strengthening communities of

practice to facilitate knowledge-sharing across

sectors;

• fostering a cooperative approach to address

the transboundary challenges of water;

• scaling up action to address the nexus of water–

climate challenges;

• unlocking innovative technologies to mitigate

water risks; and

• leveraging partnerships across markets to raise

awareness and amplify achievements in water

stewardship.

These recommendations have been reviewed

by the Social Responsibility Committee

and we look forward to accelerating our

impact by investing further to address water

stress, protect local water resources and

build community climate resilience and

economicempowerment.

Materiality assessment continued

Future-fit materiality

A key milestone in 2023 was pivoting towards a

double materiality methodology in preparation

for the forthcoming Corporate Sustainability

Reporting Directive (CSRD). In addition to the

impact materiality, where we assess impacts the

organisation has or could have on the economy,

the environment, people, and human rights,

which in turn can indicate their contribution to

sustainable development (inside-out approach),

we take also an ‘outside-in’ approach, focusing

on the financial impact which identifies and

analyses the material topics from a financial point

of view, namely those that affect or could affect

the Company’s financial condition or operating

results (outside-in approach). As a first step, we’ve

applied this approach qualitatively by considering

mainly the ESG risks and opportunities. Dynamic

materiality recognises that the materiality of

sustainability impact can evolve over time, and

sometimes quite rapidly. In other words, topics

that might be considered immaterial today could

prove to be of critical importance tomorrow.

Behind the

scenes of

our virtual

stakeholder

forum

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 85

Managing risk

A resilient business

We measure the extent to which these principles

and processes are embedded inour business

through various key performance indicators,

including an annual risk maturity survey involving

over 350 senior managers acrossall areas

designed to measure our risk culture. In2023,

wescored 92.5% on our overall risk culture score,

an improvement of over four percentage points

on2022results.

Integrated approach

We have continued the integration of risk

management, insurance, security, business

continuity and crisis management to develop our

holistic Business Resilience programme further.

The Group Business Resilience Team, led by

the Chief Risk Officer (CRO), has responsibility

for facilitating cross-functional identification,

assessment and management of all current and

emerging risks. Working in close collaboration

with risk owners across our business units, Group

functions and the Executive Leadership Team

(ELT), it is tasked with maintaining a wide-angled

view of all business streams and emerging risks

and opportunities and, through regular reporting,

ensuring visibility and decision support is provided

to the ELT and our Board.

Our processes recognise that, the earlier we

identify, assess and manage risk, the higher

the likelihood is of preventing or reducing

negative impacts and taking advantage of

opportunities. For those events that we

cannot prevent or that are unforeseeable,

wehave well-established processes to reduce

impact onthe business. These include tested

contingency plans, a business continuity

programme, our Incident Management and

Crisis Resolution (IMCR) programme and an

insurance programme.

Business units and markets

Risk sponsors and risk and insurance coordinators

in every business unit facilitate theassessment

of current and emerging risks and opportunities

on a country-by-country basis, as well as the

management of those risks, as set out in our

Enterprise Risk Management (ERM) framework.

Risk assessments are reviewed in senior

leadership team meetings every month and

risk registers are updated accordingly. All risk

registers are visible to the Group’s Business

Resilience Team, which reviews risks, identifies

keytrends and provides benchmarking for risk and

opportunity management across the business.

Italso reviews business continuity plans across

the Group to ensure they are up to date and have

been tested.

Twice a year, the Business Resilience Team

hosts a conference where all risk sponsors,

risk and insurance coordinators, and Business

Resilience Managers are updated on key trends

and emerging risks across the business. The

CRO also facilitates discussion with the regional

management teams twice a year to discuss risk

and resilience issues and trends, and to calibrate

and benchmark risks across the business. At least

every two years, each business unit participates

in an IMCR validation exercise led by a cross-

functional Group team. This includes training

and participation in crisis simulation based on

arelevant business risk.

In 2023, we focused on further embedding our

integrated approach across our business units.

This included piloting a new risk management

tool to improve visibility of key risks and enhance

best practice sharing and analysis. It also involved

optimising assessment of business interruption

risks, and embedding the outcomes in our

insurance and business continuity programmes.

In a volatile operating environment,

every business is presented with a

similar set of challenges, whether it

be economic upheavals, pandemics,

geopolitical crises, or regulatory

changes. What sets apart those

companies that struggle from those

companies that not only survive

but thrive is the ability to identify

challenges and develop plans to

manage through them; or, if they can’t

be prevented or predicted, the agility

and responsiveness to reduce the

impact andeven take advantage of the

opportunity inherent in change.

This is business resilience.

Our Business Resilience programme is designed

to embed the capability, processes and mindset

that enable us to proactively manage risks –

and embrace opportunities – so that we grow

sustainably and meet our short-, medium- and

long-term objectives.

The Group-wide programme includes

appropriate mitigation and response

systems that can be deployed when and

where required. Our integrated and holistic

approach has been particularly important in

recent years of geopolitical, economic and

environmental change.We continue to embed

the key principlesof business resilience and

risk management throughout our business,

providingmanagers atall levels with the processes

and tools they needto proactively identify and

assessrisks, makewell-thought-out decisions

andtake appropriate and timely action.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 86

Managing risk continued

We have enhanced the criteria for evaluating

crisis management performance in our business

units, identifying a number of key improvement

opportunities. Also in 2023, we completed

the incorporation of our Egypt business into

our Business Resilience programme, involving

training and development of key managers

and senior leadership, including in IMCR. A risk

insurancecoverage.

Group management

The outcomes of engagement with business

units, region teams and the Group function heads

are integrated into a principal risk report, which

is reviewed by the Group Risk and Compliance

Committee (GRCC).

Comprising Group function heads as ‘risk

owners’ for each of our risk categories, the GRCC

meets quarterly and is co-chaired by the CRO.

Itensures that principal risks (defined on page 88)

are reviewed with a broader, cross-functional

perspective, integrating findings into the principal

risk report submitted quarterly to the ELT and the

Audit and Risk Committee of the Board.

The Group function heads also perform an

important role in understanding and managing risk

aggregation. One of the key principles of our risk

and resilience programme is that no risk exists in

isolation, neither can any risk be managed within a

functional silo. For example, the macroeconomic

environment affects, and is affected by, the

geopolitical environment, which also affects our

supply chain. We have seen this most noticeably

through conflicts in Ukraine and the Middle East.

Our cross-functional approach helps ensure that

we consider the broader implications of all risks

to the business and take a consistent and aligned

approach to theirmanagement.

Sustainability risks

Within the ESG materiality assessment process

(see pages 83 to 85), we have reassessed risks and

opportunities facing our business, the environment

and society. One of the most significant risks

to our resilience over the longer term is climate

change. By proactively preparing for and managing

climate risk through our business strategy and

capital investments, however, we can harness

significant opportunities. Climate risk is fully

integrated intoour risk management programme

and our CRO facilitates more frequent discussions

with a cross-functional team that includes

representatives from Business Resilience,

Finance, Quality, Safetyand Environment,

andCorporate Affairs andSustainability.

Risk governance

The Board retains overall accountability and

responsibility for the Group’s risk management and

internal control systems. It has defined the Group’s

risk appetite, and, through the Audit and Risk

Committee, reviewed the effectiveness of these

systems. During the year, the Board reviewed our

principal risks and opportunities, including those

associated with climate change and cyber security.

Additionally, the Social Responsibility Committee

of the Board takes a particular interest in risks

associated with climate change, as set out on

pages 100 to 104. Also in 2023, our CRO conducted

a risk management workshop with the full Board

to refresh Directors’ understanding of business

resilience and risk management principles, and

how they are applied within the business. This is

part of our regular risk management education

programme at all levels across the Company.

A key role of the Board is to establish the Group’s

risk appetite. In 2023, the Audit and Risk Committee

reviewed the Risk Appetite Statement and risk

tolerance levels that will be applied to every risk, as a

key element of our risk assessment process at both

business unit and Group level. This review will be

considered by the Board in the first quarter of 2024.

Our internal audit department conducts an annual

independent audit of the Business Resilience

programme and its implementation, assessing the

Company’s risk management, business continuity

and crisis management processes, and their

application against business best practices and

the International Accounting Standard. The Head

of Corporate Audit makes recommendations

to improve the programme, where required,

and the findings are submitted to the Audit and

Risk Committee. The Board and its committees

conduct annual reviews of the effectiveness of our

internal controls. Further details of that review are

set out in the Audit and Risk Committee report on

pages 153 to 158.

In the section that follows, we have

grouped our principal risks to highlight

the connectivity between risks.

Responding to upheavals

in the macroeconomic and

geopolitical environment

Leveraging our unique

24/7portfolio –and

responding tochange

Maintaining

operationalexcellence

involatile markets

Managing climate change

risks and opportunities

Principal risks trend

Risk included in viability assessment

Link to growth pillars

1 2 3 4 5

Increasing

Stable

Decreasing

Y N

Read more p 87 to 106

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 87

Principal risks and opportunities

Responding to upheavals

in the macroeconomic and

geopolitical environment

Principal risks and opportunities:

A1. Foreign exchange fluctuations

A2. Marketplace economic conditions

A3. Geopolitical and security environment

In 2023, we saw some easing and stability in global commodity costs. However,

the general macroeconomic and geopolitical environment remained volatile as a

result of the continuing Russia-Ukraine conflict, inflationary conditions and high

interest rate environment. Economic challenges are particularly evident in some key

markets, such as Nigeria and Egypt, where high inflation and volatile exchange

rates create headwinds to economic expansion. In the latter part of the year,

conflict between Israel and Hamas led to instability in the Middle East, impacting

shipping and potentially disrupting supply chains, as well as increasing some

costs. Calls for boycotts of US brands, including Coca-Cola, asaresult of the

USgovernment’s support for Israel, may impact our sales in some predominantly

Muslim communities.

A1. Foreign exchange fluctuations

We continued to see foreign exchange volatility and

rate fluctuations, particularly in the Russian Rouble,

Nigerian Naira and Egyptian Pound.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Treasury

Timeframe:

Short term (1-2 years)

Link to material issues:

Socio-economic impact

Risk tolerance:

Group Treasury is required to continually monitor foreign

exchange risk and ensure there are effective mitigation plans

inplace, recognising many external factors are largely out of

ourcontrol. To the extent possible, residual risk is to remain

atorbelow our ‘moderate’ rating.

Key drivers Consequences Mitigation

• Macroeconomic conditions

• National instability and government

responses to global and domestic

economic conditions, particularly in

Russia, Nigeria and Egypt

• Financial losses and increased

costbase

• Asset impairment

• Limitations on cash repatriation

In 2023, we:

• maintained our target of hedging 25-

80% of rolling 12-month forecasted

transactional foreign currency

exposures as per our treasury policy,

endorsed by the Board;

• used i) derivative financial instruments,

where available, and ii) hard currency

deposits to reduce transactional

foreign currency exposures; and

• provided reporting and visibility, and

sought advice from the Financial Risk

Management Committee and the Audit

and Risk Committee of the Board.

Metrics and targets Outlook Focus for 2024

• % of hedged foreign currency

exposures, foreign exchange losses

• We expect continuing short to

medium-term volatility in key markets,

particularly Nigeria and Egypt. In early

2024 and after publishing our 2023

results, there was a significant fall in

the value of the Nigerian naira.

• Conflict in the Middle East is expected

to exacerbate Egyptian economic

challenges.

• Continue monitoring key indicators

and manage volatility under our

current policies and programmes.

Principal risks trend trajectory

Increasing

We define principal risks and opportunities as those that are material and have the most

potential to impact the Group’s strategic objectives. In this section, we have grouped our

principal risks and opportunities to highlight connectivity between them.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 88

A2. Marketplace economic conditions

We saw increases in inflation and interest rates

across our markets, although conditions became

more stable over the year and consumer spending

remained robust. Economic conditions, however,

remain challenging and may reduce consumer

purchasing power, potentially impacting the

affordability of our products.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Strategic Finance

Timeframe:

Short term (1-2 years)

Link to material issues:

Socio-economic impact

Risk tolerance:

Group Finance is required to continually monitor economic

conditions in collaboration with our business units and ensure

that effective mitigation plans are in place, recognising

many external factors are largely out of our control. To the

extent possible, residual risk should remain at or below our

‘moderate’rating.

Key drivers Consequences Mitigation

• Challenging economic conditions

• Government and central bank

responses, including taxation and

interest rates increases

• Unemployment and

underemployment rates

• Aggressive discounting and/or pricing

pressure from large retailers

• Price elasticity

• Volume and revenue decline

• Reduced profitability

In 2023, we:

• used pricing and targeted actions to

drive mix as critical tools to manage

cost inflation;

• carefully managed operational

expense and cost controls;

• managed cash outflows;

• developed coordinated and targeted

plans with TCCC and other business

partners on promotions and marketing

initiatives; and

• continued to monitor conditions and

adjust our action plans.

Metrics and targets Outlook Focus for 2024

• FX-neutral revenue growth, operating

expenses, profitability

• We expect challenging economic

conditions to continue in the short

term as central banks increase interest

rates to manage inflation and conflicts

in Ukraine and the Middle East continue.

• Continue to monitor key economic

indicators in each market and adjust

plans as required.

Principal risks trend trajectory

Increasing

A. Responding to upheavals in the macroeconomic and geopolitical environment continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 89

A3. Geopolitical and security

environment

Our concerns remained centred on the Russia/Ukraine

crisis. In Ukraine, our focus was and remains the safety

of our people first, and continuing our production and

distribution where it is safe to do so.

In Russia, the decision by TCCC to cease operations, and

economic and other sanctions imposed by many countries, had

a significant impact on our business. The security environment in

Nigeria remains volatile as the new government reduces subsidies

in key areas to improve economic management. Geopolitical

tensions remain in the Balkans and Armenia, and these led to

incidents that had the potential to affect the safety of our people

and disrupt our operations. Conflict in the Middle East threatens

to impact oil prices and may lead to disruptions and increased

costs in our supply chain. Calls for boycotts of US brands, including

Coca-Cola, may impact our business in markets with large Muslim

communities.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Chief Risk Officer

Timeframe:

Short to long term (1-5+ years)

Link to material issues:

• Employee well-being

andengagement

• Socio-economic impact

Risk tolerance:

We have no appetite for knowingly exposing our employees to

potentially dangerous situations without having effective plans

in place to reduce the risk to acceptable levels that are reviewed

and tested regularly. Residual risk should remain at or below our

‘low’ rating.

Key drivers Consequences Mitigation

• Russia/Ukraine crisis and potential

forexpansion into other countries

• Continuing political unrest and

social instability in several countries

including, Nigeria, the Balkans and

Armenia

• Social discontent driven by continuing

tough economic conditions

• Continuing conflict in the Middle East

• US elections in 2024

• Safety of our people

• Financial impact of economic and

other sanctions

• Potential for business disruptions

• Supply chain instability

In 2023, we:

• continued to enhance security

risk assessments to better inform

management plans;

• developed emergency and

contingency plans for all potentially

affected markets; and

• are continuing IMCR development and

training in business units and at Group

and ELT level.

Metrics and targets Outlook Focus for 2024

• Reduced impact of security-related

incidents, reduction in residual risk

levels, number of IMCR validations

successfully completed

• We expect continuing volatility over

the medium to long term. While the

situation remains unpredictable, we

do not expect a resolution of the

Russia/Ukraine crisis in the short

term. Wavering support for Ukraine

could encourage Russia to continue

hostilities.

• Conflict in the Middle East may

continue for some time in 2024, with a

potential for impacting supply chains

and oil prices.

• The outcome of the US election

in 2024 may increase geopolitical

instability globally, and in our region in

the medium to long term.

• Continuing tough economic

conditions in the short term will

increase the risk of social discontent

and political instability.

• Continuing development of

our cross-functional business

resilienceprogrammes, particularly

incapability development.

Principal risks trend trajectory

Increasing

A. Responding to upheavals in the macroeconomic and geopolitical environment continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 90

Leveraging our unique

24/7 portfolio – and

responding to change

Principal risks and opportunities:

B1. Product relevance and acceptability

B2. Strategic stakeholder relationships

B3. Competing in the digital marketplace

To maintain true business resilience, we continue to evolve our portfolio

of products and routes to market. To that end, we need to maintain strong

relationships with our partners, constantly monitoring and responding to

changing consumer preferences, customer needs, and the business and

regulatory environment. In 2023, we faced significant challenges, and adapted

our business to respond to those challenges while keeping our long-term

objectives firmly in sight.

B1. Product relevance and acceptability

In 2023, debates around sweeteners, as well as

discussion on appropriate responses to key ESG

priorities, increased the potential for consumer

concerns relating to our products, regulatory

change and imposition of additional taxes.

This was exacerbated by government actions to reduce national

debt. Despite these concerns, ensuring we have highly relevant

and high-quality products that continue to delight consumers,

and addressing ongoing and emerging health and environmental

concerns through robust sustainability initiatives, remains part of

our resilience and a significant opportunity for our business. This

is closely linked with climate change risks, particularly Sustainable

packaging and Impact of our sustainability performance on our

reputation (see page 107).

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Public &

RegulatoryAffairs

Timeframe:

Short to medium term

(1-5years)

Link to material issues:

• Corporate citizenship

• Responsible marketing

• Nutrition

• Socio-economic impact

Risk tolerance:

All business units are required to continually monitor consumer

concerns, regulatory changes and potential new taxes in their

countries, ensure all significant changes are reflected in their risk

risk should remain at or below our ‘moderate’ rating.

Key drivers Consequences Mitigation

• Heightened consumer concerns

around health, environmental and

social issues

• Actions of public health advocates

andNGOs

• Government responses to health

issues and climate change at EU and

national levels

• Brand and reputation damage leading

to reduced sales

• Discriminatory taxes

• Financial impact

• Forced changes in product

formulations and portfolio mix

In 2023, we:

• continued product innovation

andexpansion of our 24/7 portfolio

torespond to consumer needs,

including expansion of

low-/no-caloriebeverages;

• took a proactive approach to partner

with key stakeholders to better

understand and address concerns;

• continued our proactive advocacy with

business unit support plans in place; and

• gathered insights from our Group-wide

assessment tool.

Metrics and targets Outlook Focus for 2024

• ESG reputation scores

• Calorie-reduction targets

• Mission 2025 targets

• Heightening concerns particularly

around sustainability and the impact

of climate change in the medium

to longer term. Increasing risk of

additional sugar/beverage taxes in

the short term. The EU regulatory

environment will increasingly focus on

health and sustainability issues, which

could increase scrutiny of our ESG

performance. There is opportunity for

growth in increasing our performance,

and consumer perceptions of our

performance, in key ESG areas.

• Continuing proactive approach in

partnership with key stakeholders

to better understand and address

concerns. Key sustainability projects

to meet our NetZeroby40 targets.

Principal risks trend trajectory

Increasing

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 91

B2. Strategic stakeholder relationships

It is critical that we remain aligned with our key

strategic partners, such as TCCC, Monster Energy,

COSTA Coffee and premium spirits manufacturers.

In 2023, the Russia/Ukraine crisis resulted in TCCC

making the decision to stop sales of its brands

in Russia, which had a significant impact on our

businessthere.

Despite this, our relationship with all our strategic partners,

including TCCC, remains strong, reflected by the recent renewal

of our bottling agreements, strong marketing support across

our territories and close collaboration and alignment on our

sustainability initiatives. Our relationship with our key partners

is important for our sustainability agenda and our response to

climate change, particularly in new products and formulations.

and packaging. This risk is closely linked with climate change

risks, particularly Sustainable packaging and Impact of our

sustainability performance on our reputation (see page 107).

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Strategic Finance

Timeframe:

Medium to long term

(2–5years+)

Link to material issues:

• Socio-economic impact

• Corporate governance

andbusiness ethics

Risk tolerance:

We are committed to maintaining strong, positive relationships

with our strategic partners. Residual risk should remain at or

below our ‘low’ rating.

Key drivers Consequences Mitigation

• Potential for disagreements between

independent businesses when

strategic objectives are not aligned

• Different environments, including

regulatory environments, in which

ourpartners operate, and broader

global priorities

• The impact of climate change and

need for collaboration on new

formulations and pack mix

• Financial impact

• Damage to the Coca-Cola system

In 2023, we:

• maintained established processes,

routines and communication channels

to manage strategic relationships at

the most senior levels; and

• closely monitored agreed business

indicators defined during business

planning, and analysed deviations so

that corrective actions could be taken

when needed.

Metrics and targets Outlook Focus for 2024

• FX-neutral revenue growth • Given the importance of our key

partner relationships over the

long term and a changing global

environment that may impact our

independent businesses differently,

we continue to focus on maintaining

aligned strategic objectives.

• We will maintain our close working

relationship with our strategic partners

to ensure we remain aligned. We will

continue to collaborate on our key

sustainability initiatives, particularly

our Pack Mix of the Future project.

Principal risks trend trajectory

Stable

B. Leveraging our unique 24/7portfolio – and responding to change continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 92

B3. Competing in the digital marketplace

The digital marketplace continued to evolve and

remained highly competitive, with new and existing

companies seeking to take advantage of e-commerce

growth. We continued to see considerable growth,

with 9% of our sales now taking place online

Given the rapidly changing environment, including the

proliferation of new and existing players and evolving business

models, we expect the risks and opportunities to remain

significant for the foreseeable future. We consider Competing in

the digital marketplace as also an emerging risk and opportunity.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Digital Commerce

Timeframe:

Medium to long term

(2–5+ years)

Link to material issues:

• Socio-economic impact

Risk tolerance:

Digital commerce business models are still evolving and may

not always be successful. We take the approach of making small

investments to test our ideas and models, and being prepared

to fail fast and learn before making significant investments.

Residual risk should remain at or below our ‘moderate’ rating.

Key drivers Consequences Mitigation

• Dominance of large

e-commerceplatforms

• Proliferation of new and existing

players with varying business models

• Growing consumer preference

forspeed and convenience of

onlinepurchases

• Significant opportunity to grow

sales and market share through

welldeveloped and executed

e-commerce strategies

• Potential to lose market share or fail

to take full advantage of growing

e-commerce market

• Potential for new business models and

ventures to fail

In 2023, we:

• continued to build and invest in digital

commerce capabilities and systems

to enhance our business-to-business

(B2B), e-retail, food service aggregator

and direct-to-consumer pillars; and

• continued to evolve our model for

direct-to-consumer routes to market

in selected countries.

Metrics and targets Outlook Focus for 2024

• % active e-customer coverage,

revenue and market share on leading

e-commerce platforms, number of

active customers on our in-house

Customer Portal platform, revenue

generated on B2B platforms, share of

B2B orders generated digitally

• We expect the continued strong

growth of B2B and business-to-

consumer (B2C) e-commerce sales

over the medium to long term.

• Drive active e-customer coverage

and enhance regular data sharing.

Strengthen relationships with leading

e-commerce platforms. Enhance

our collection and analysis of data to

accelerate our revenue and market

share growth via data-based decisions.

• Accelerate systematic efforts to

raise digital capabilities in our core

business teams, ensuring that digital

transformation of our business model

is keeping pace with the evolution of

our market and competitive landscape.

Principal risks trend trajectory

Stable

B. Leveraging our unique 24/7portfolio – and responding to change continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 93

Maintaining operational

excellence in volatile

markets

Principal risks and opportunities:

C1. Health and safety

C2. Suppliers and sustainable sourcing

C3. Cyber incidents

C4. People retention

C5. Ethics and compliance

The macroeconomic and geopolitical environment, combined with regional and

national issues, created volatile operating conditions in our markets. The Russia/

Ukraine crisis created safety risks for our people and disrupted established

supply chains across our territory. Our people adapted quickly to these volatile

conditions to manage safety challenges, and maintain business operations to

continue to serve our customers and achieve excellent results.

C1. Health and safety – employee safety

Risks associated with the COVID-19 pandemic and

influenza continued to reduce. We saw a reduction

in lost time accidents of employees and contractors,

and we had no serious injuries or fatalities in our

employee population. However, we regret that

we had contractor and public fatalities, primarily

associated with traffic accidents caused mainly

bypoor road infrastructure in Africa.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Quality, Safety

andEnvironment

Timeframe:

Medium term

(2-5 years)

Link to material issues:

• Employee wellbeing and

engagement (including

employee safety)

Risk tolerance:

We have no tolerance for failing to comply with workplace health

and safety policies. Residual risk should remain at or below our

‘low’ rating.

Key drivers Consequences Mitigation

• Non-compliance with or breaches of

health and safety (H&S) requirements

• Inadequate contractual provisions

and/or behaviours of contractors

• Fatalities and/or serious injury of

employees, contractors, third parties,

and members of the public

• Damage to our reputation as a

caringresponsible employer if not

handled properly

• Financial losses

In 2023, we:

• continued implementation of our

Behaviour Based Safety (BBS)

programme, including human and

organisational principles (HOP), across

the entire organisation;

• continued implementation of E2E

contractor management process;

• involved leaders on all levels in H&S

observations and H&S conversations;

• ensured Life Saving Rules are in place

and incorporated in our cross-country

verification programme; and

• continued to work towards H&S

management system certification.

Metrics and targets Outlook Focus for 2024

• Number of injuries and fatalities

• LTA rates

• We remain optimistic that our

trainingand awareness programmes

will continue to reduce fatalities

andinjuries.

• We will continue to closely monitor

road and traffic accidents to ensure

our education and awareness

programmes are effective.

Principal risks trend trajectory

Stable

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 94

C2. Suppliers and sustainable sourcing

The macroeconomic environment, the Russia/Ukraine

crisis, the Israel/Palestine conflict and supply/demand

imbalances continued to create challenging conditions

for securing the supply of key ingredients, packaging

and services at a reasonable cost.

This risk is closely linked with the Macroeconomic environment

(see page 89) and climate change risks, particularly Sustainable

packaging, the impact of climate change on the cost and

availability of key ingredients and Impact of our sustainability

performance on our reputation (see pages 100 to 107).

Workingmore closely with our supply chain partners to reduce

the impact of a continuing volatile operating environment

andthe longer-term impact of climate change makes us more

resilient and presents a significant opportunity for maintaining

our profitability and jointly achieving our sustainability goals.

Given the increasing requirements for supply chain transparency

and consequent evolution of the regulatory environment as

well as the potential impact of climate change, Suppliers and

sustainable sourcing is also an emerging risk and opportunity

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Chief Procurement Officer

Timeframe:

Medium (2-5 years)

Link to material issues:

• Sustainable sourcing

• Socio-economic impact

• Biodiversity

Risk tolerance:

We only deal with suppliers that demonstrate a capability for

consistently delivering high-quality products that meet our

guiding principles. Residual risk should remain at or below our

‘low’ rating.

Key drivers Consequences Mitigation

• Global macroeconomic conditions and

supply chain disruptions

• Increased financial speculation on

global commodities

• Hard currency liquidity issues

• Supply/demand imbalances and/or

crop yields

• Russia/Ukraine crisis

• Impact of climate change over the

longer term

• The Israel/Palestine conflict

• New EU regulations driving the need

for increasing transparency in our

supply chain

• Production disruptions

• Failure to meet contractual obligations

• Increased input costs and

marginpressure

In 2023, we:

• contracted volumes of key ingredients

and packaging materials;

• contracted prices with focus on local

currency wherever feasible;

• ensured hedgeable contracts

andintroduced a hedgeable

energycomponent;

• expanded our supplier base

andintroduced new and

alternativesuppliers;

• secured raw materials for suppliers

toprovide security of supply;

• developed contingency plans

withsuppliers due to energy risks

and risk mapping with our production

areas; and

• investigated alternative and

sustainable energy options for long-

term availability and pricing stability.

Metrics and targets Outlook Focus for 2024

• FX-neutral raw material cost per case

• COGS per case

• % key ingredients sourced sustainably

• We expect some continuing volatility

in the medium term as a result of

macroeconomic and geopolitical

conditions and continuing supply/

demand imbalances. Over the longer

term, we expect climate change

and our suppliers’ response to

climate change will affect the cost

ofingredients.

• Collaborating with our key suppliers

to manage volatility and maintain

continuity. Continuing discussions

to better understand challenges to

key ingredient supply as a result of

climate change and ESG performance.

Enhancing our risk monitoring in areas

that may affect commodity availability

and pricing.

Principal risks trend trajectory

Increasing

C. Maintaining operational excellence in volatile markets continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 95

C3. Cyber incidents

We saw continuing cyber attacks against government

operations and companies in many of our markets.

Several known actors continued to conduct high-

profile ransomware attacks. Organisations such as

Europol and several US agencies continued to enhance

their capabilities to investigate, prevent and respond

to cyber crime, which also helps to reduce risk to

companies such as ours.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Chief Information

SecurityOfficer

Timeframe:

Short to medium term

(1-5years)

Link to material issues:

• Socio-economic impact

Risk tolerance:

We are committed to establishing and maintaining strong internal

controls related to cyber security across our business. Residual

risk should remain at or below our ‘low’ rating.

Key drivers Consequences Mitigation

• Increasing use of cloud-based IT

solutions and working from home

increasing exposure

• Increasing sophistication of malware

and ransomware actors

• Russia/Ukraine crisis

• Operational disruptions and

financiallosses

• Damage to corporate reputation

• Potential for release of personal

andcustomer data

• Non-compliance with data

protectionlegislation

In 2023, we:

• maintained ISO/IEC 27001

certification(Information Security

management Systems);

• continued to strengthen our endpoint

and cloud security program;

• improved end user and privileged

accounts identity security;

• launched mandatory cyber security

training for all employees;

• executed simulated hacker attacks and

vulnerability assessments, remediated

gaps and improved overall cyber hygiene;

• continued implementing network zero

trust principles for IT environment and

plants; and

• improved our capability to respond and

recover from cyber incidents and attacks

by executing cyber crisis tabletop

exercises covering ELT, business unit

teams and IT Teams, and testing our

contingency plans and incident response

procedures at least semi-annually.

Metrics and targets Outlook Focus for 2024

• Cyber security maturity level

• Cyber attacks detected and prevented

• The number and sophistication

of cyber incidents is expected to

increase in the short to medium

term. Stakeholder concerns about

data privacy and requirements to

protect itwill continue to increase.

Government agencies will continue to

improve their capabilities to investigate

and respond to cybercrime.

• Improve cyber threat prevention and

detection capabilities in plants

• Enhance cyber risk governance and

oversight by introducing continuous

controls monitoring practices

• Introduce targeted cyber training to

sensitive user groups

• Improve identity and network security

by enforcing zero trust access policies

• Strengthen our threat detection

capabilities in IT and plants through

ournew Cyber Fusion Center

• Develop an annual program of testing

controls over sensitive cyber and

ITdomains

Principal risks trend trajectory

Increasing

C. Maintaining operational excellence in volatile markets continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 96

Risk management in action

Prepared for crisis response

In 2023, we conducted a cyber security incident response

exercise with members of our ELT to practise our cyber IMCR

response processes. The exercise simulated a cyber attack

against one of our largest production facilities. The exercise

required ELT members, in consultation with our Group IMCR

Team and external experts, to quickly review the operational

response of our cyber security team, evaluate options and make

a series of key decisions to protect data privacy and efficiently

restore our operations. A number of key lessons are being

incorporated into our continuously improving IMCR programme

at all management levels. We have committed to conducting

anIMCR exercise with the ELT annually using avariety of

differentscenarios.

At least every two years, all business units, alongside TCCC

counterparts, go through a full-day training and simulation

exercise to ensure the IMCR leaders and teams have the

capabilities to manage incidents and prevent crises, and to ensure

IMCR processes are robust. A joint validation team, made up of

senior managers from both CCH and TCCC, provides the training,

observes the business unit team inactionand provides feedback

on areas for improvement.

One of the BU’s to go through an IMCR Validation in 2023 was

Romania. IMCR Leader and Corporate Affairs and Sustainability

Director Alice Nichita puts the team’s performance down to

preparation. Alice said “The standout lesson for me is the critical

need for thorough preparation to ensure effective incident

management. The team’s outstanding performance depended

on our ability to swiftly analyse and address a complex scenario,

the value of disciplined leadership and effective IMCR tools at

hand. The experience reinforced the need for constant readiness

and seamless coordination to navigate challenges efficiently.”

Principal risks and opportunities continued

C. Maintaining operational excellence in volatile markets continued

The Romanian

IMCRTeam

debriefing after

asuccessful

IMCRValidation

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 97

C4. People retention

We made good progress in addressing higher

turnover rates for female employees and maintained

arelatively high retention rate overall (88%),

although not yet meeting our internal targets

(94%). We showed improvement in our employee

engagement (+1 percentage point) by attaining

asustainable engagement index score of 86%.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of People Operations

Timeframe:

Medium to long term (2-5+ years)

Link to material issues:

• Employee wellbeing

andengagement

• Human rights, diversity and

inclusion

• Corporate citizenship

Risk tolerance:

We will strive to remain an employer of choice, provide effective

career development programmes and maintain high levels of

employee engagement. Residual risk should remain at or below

our ‘low’ rating.

Key drivers Consequences Mitigation

• Changing expectations for flexible

working arrangements

• Maintaining value proposition as an

employer of choice

• Development of technology and online

tools to enhance team engagement

• Difference between high inflation rates

and salary increases

• Failure to attract and retain people

tomeet our goals

• High turnover in critical positions

resulting in knowledge and

productivityloss

• Potential imbalance between male

andfemale employees due to different

retention rates

In 2023, we:

• continued to leverage continuous

listening to measure culture and

engagement and address findings;

• improved people management skills

to enhance engagement and energise

employees sustainably, including how

to manage remote teams;

• maintained our leadership

development programme and

continued to foster our coaching and

mentoring culture; and

• implemented action plans to improve

retention of female employees.

Metrics and targets Outlook Focus for 2024

• Retention rate

• Engagement score

• Talent retention will be an ongoing

challenge over the short to medium

term as adjustments are made to

new ways of working. However, highly

engaged and talented people are

critical for our resilience and our

investment in our workforce presents a

significant opportunity for our business.

• Carefully monitor productivity and

engagement levels as we refine our

flexible working arrangements.

Principal risks trend trajectory

Increasing

C. Maintaining operational excellence in volatile markets continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 98

C5. Ethics and compliance

A number of economic and other sanctions imposed

by the EU against Russia and Belarus increased the

risk of inadvertent non-compliance.

We continued focusing on our sanctions compliance

programme, strengthening our processes and training our

employees. The risk of fraud against the Company, and non-

compliance with anti-bribery and corruption standards remained

a focus area. We continued integrating the Egypt business unit,

rolling out our key compliance policies, processes, trainings and

controls to accelerate the full integration and adherence to our

Group standards.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Legal Compliance

Timeframe:

Medium term (2-5 years)

Link to material issues:

Corporate governance

Risk tolerance:

We have no tolerance for knowingly breaching legal and

regulatory requirements, our Code of Business Conduct,

Anti-bribery Policy, other Group and business unit Ethics and

Compliance policies, and international sanctions. All business

units are required to actively monitor changes in the laws and

regulations specific to their country of operation and ensure

appropriate controls are in place to maintain compliance with our

policies and the law. Residual risk should remain at or below our

‘low’ rating.

Key drivers Consequences Mitigation

• The Russia/Ukraine crisis and the

international response

• Potential for broadening of sanctions

• Continuing levels of real and perceived

corruption in some countries that we

operate within

• Tougher economic conditions that

increase the risk of internal and

external fraud

• Damage to our reputation

• Significant financial penalties

• Increased management time and

effort to resolve incidents

• Financial loss

In 2023, we:

• continued our monitoring of economic

and other sanctions imposed against

Russia and Belarus;

• focused on ongoing risk assessment

and sanctions screening process for

transactions, particularly for suppliers

in Russia, Belarus and Ukraine;

• trained risk zone employees on Anti-

Bribery and Corruption (ABaC) and

sanctions compliance;

• executed our ABaC audit plan,

including ABaC audits in Egypt and

Russia;

• monitored our Speak Up! Hotline and

followed up.

Metrics and targets Outlook Focus for 2024

• % employees trained, resolution

ofSpeak Up! reports

• Audit reports

• We expect the international sanctions

environment to remain complex in

the short to medium term. Given

we operate in a number of countries

where the perception of corruption

is high, we expect this risk to remain

significant for the foreseeable future.

• Completing the Egypt compliance

integration plan implementation,

including introduction of a cross-

functional joint task force. Continued

strengthening of our Code of Business

Conduct, Anti-bribery Policy and

sanctions compliance programmes.

Principal risks trend trajectory

Increasing

C. Maintaining operational excellence in volatile markets continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 99

Managing climate

change risks and

opportunities

Principal risks and opportunities:

D1. Sustainable packaging

D2. Water availability and usage

D3. Managing our carbon footprint

We continued to improve our assessment

ofthe effects of climate change, with a focus

on clear targets and robust action plans to

deliver on our commitments, mitigate risks

and take advantage of the opportunities

inherent inchange.

In 2023, we added a comprehensive

assessment of the risks and opportunities

associated with sustainable packaging and

the cost and availability of key ingredients.

Both of these are linked directly with the

Principal risk: Managing our carbon footprint,

see pages 103 to 104, which in turn directly

impacts our ability to meet our NetZeroby40

commitments. We updated our assessments

of Water availability and usage see page 102

and Managing our carbon footprint as a result

of updated external and internal data.

During the year we invested €220.3 million,

representing 33% of our total capex,

on sustainability initiatives and this is

expected to rise to 40% of our total capex

by 2025 and 50% by 2030. This included

investments in recycled PET manufacturing

for example increasing food grade recycled

PET availability. We expect almost 50%

of our requirement for recycled PET will

be served in-house by the end of 2024

which also reduces costs. Our investment

in energy efficient coolers decreases our

carbon emissions and also improves our

sales. Investments in more energy efficient

equipment improves our manufacturing

capabilities as well as reduces emissions

anddelivers cost savings.

Our investment in sustainability-related

initiatives should be considered in the context

of opportunities for our business. In addition

to reducing our impact on the environment,

cost savings for business and mitigating the

negative impacts of climate change, there

is a direct link between how consumers

perceive our sustainability performance

– as measured by our “E-score”, and their

willingness to purchase our products. If we

are able to increase our E-score, we also

increase consumers’ willingness to purchase

and, assuming their willingness to purchase

leads to an increase in actual purchase, this

represents a very significant opportunity for

our business. For further information, see our

assessment of the Emerging opportunity:

Impact of our sustainability performance

onour reputation on page 107.

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 100

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Sustainability

Timeframe:

Medium to long term (2-5+ years)

Link to material issues:

• Packaging and waste

management

• Sustainable sourcing

Risk tolerance:

All business units are required to establish a process formonitoring

and reporting potential regulatory changes relating to packaging.

Residual risk should remain at or below our‘moderate’ rating.

Key drivers Consequences Mitigation

• Price increases of recycle-friendly raw

materials such as rPET and aluminium

• Low collection rates in high plastic

volume markets

• Low access to quality feedstock to

enable shift to rPET at balanced prices

• New EU regulations on plastics and

packaging waste

• Impact of packaging on meeting our

NetZeroBy40 commitments

• Consumers’ concerns on waste and

its influence on perceptions of our

environmental performance

• Impact on reputation and ultimately

consumer base

• 15% increase in annual cost of

packaging by 2030 and 1.8% by 2040

under a Paris Ambition (RCP1.9)

climate scenario; and 9% increase

in annual packaging costs by 2030

and 1% by 2040 under a stated policy

(RCP4.5) climate scenario

• Capex costs associated with changing

packaging mix

• Very significant opportunity associated

with innovative, profitable solutions

In 2023, we:

• continued implementing TCCC’s

World Without Waste initiatives;

• focused on meeting Mission 2025

commitments, including increasing

percentage of recycled materials;

• partnered with regulatory authorities,

industry peers, start-ups and NGOs

todevelop effective recovery systems;

• identified new technologies and

innovation, focusing on new and

alternative packaging solutions such

as packageless, refillable, recycling and

improving packaging sustainability;

• collaborated with suppliers on plans for

decarbonising the value chain;

• expanded portfolio in refillables

through innovative packaging types,

such as resealable refillable bottle

and universal glass bottle launches in

Austria; and

• piloted LitePac Top, the world-first

innovations for plastic-free multipacks

for the family pack sizes.

Metrics and targets Outlook Focus for 2024

• Mission 2025 targets relating to

collection of packaging, use of recycled

PET and % of packaging recyclable

• We will continue to see heightened

stakeholder concerns over the medium

term and increased regulation across

EU markets. The price of good quality

recycled material will continue to rise

over the medium term as industries

focus on increasing recycled content.

• Establish and implement operational

plans to drive sustainable packaging

initiatives at the business unit level.

Principal risks trend trajectory

Increasing

Principal risks and opportunities continued

D1. Sustainable packaging

Given the potential impact that significant changes

to our packaging mix could have to longer-term

capital investment in production and distribution,

and the influence that packaging has on our

ability to meet our NetZeroby40 commitments –

packaging represents over 30% of our emissions

– managing the risk and opportunity associated

with Sustainable packaging directly impacts

andisimpacted by our future business strategy.

It is closely linked with other principal risks, particularly Managing

our carbon footprint (see pages 103 to 104) and the emerging

risk Impact of our sustainability performance on our reputation

(see page 107). In 2023, we designed our Pack Mix of the Future

vision starting with EU markets. The development of a profitable

packaging strategy aims to reduce our environmental impact,

address escalating stakeholder concerns relating to packaging

waste and takes into account new EU regulations such as the

EU Directive on packaging and packaging waste. Given the

rapid changes in technology and the evolution of the regulatory

environment, and the significant impact that major changes

inour packaging mix have for our NetZeroby40 commitment

andour future business strategy, Sustainable packaging is also

an emerging risk and opportunity.

D. Managing climate change risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 101

D2. Water availability and usage

We updated our water risk assessment based

onrevised data and including our Egyptian

plants. That assessment did not identify

any material changes to our 2021 and 2022

assessments. Availability and quality of clean

water is fundamental to our business, our suppliers

andthelocal communities in which we operate.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Quality, Safety

andEnvironment

Timeframe:

Long term (5+ years)

Link to material issues:

• Water stewardship

• Sustainable sourcing

• Biodiversity

Risk tolerance:

We have a low tolerance for conducting activities that have a

significant negative impact on the environment. Residual risk

should remain at or below our ‘low’ rating.

Key drivers Consequences Mitigation

• 7

countries and 19 plants (water

priority locations) that are likely to

come under increased water stress

with climate change

• Local community needs for clean water,

particularly in areas of water stress

• Increased regulatory pressure,

including imposition of taxes and

levies, designed to reduce water usage

and/or fund additional infrastructure

¹ Excluding Egypt which is not part of Mission 2025;

however its locations are also priority ones

• Insufficient water to service our needs,

the needs of our suppliers and the

needs of the local community

• Increased annual baseline water costs

by up to 40% by 2030 but a decrease

in annual costs by up to 15% by 2040

as a result of capex expenditure and

reduced water usage by 2040

• Requirement for up to an additional

€111 million in capital expenditure over

the next 16 years to meet our needs

and to replenish watersheds for local

communities in water priorityareas

• Damage to our reputation

In 2023, we:

• continued to implement water usage

reduction plans across our operations;

• implemented water stewardship

programmes in water priority locations

to mitigate shared water risks; and

• updated source vulnerability

assessments for all plants and

enhanced our plans, including

identification of additional

capitalexpenditure required

forenhancing infrastructure,

• made good progress on improving

water use ratio in Egypt with a 10%

reduction vs 2022,

• integrated environmental KPIs

monitoring and reporting for all plants.

Metrics and targets Outlook Focus for 2024

• Reduce water usage by 20% by 2025

• Number of water availability projects in

water risk areas implemented

• % key ingredients sourced sustainably

• We have assessed that water stress

in our water priority locations will

continue to increase as a result of

climate change. The extent of that

increase will depend both on our

actions and on the global response

to climate change. We expect that

regulatory pressure will increase and

that will flow through to additional

operating costs associated with

water that we have estimated in

ourassessment.

• In 2024, we will further implement

innovations to reduce our water

usage, particularly in water priority

locations, which will also include our

Egyptian plants. We will implement

additional community water projects

to help secure water availability for

local communities in an additional two

locations, bringing the total number of

community water projects to 14.

Principal risks trend trajectory

Increasing

D. Managing climate change risks and opportunities continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 102

D3. Managing our carbon footprint

We updated our comprehensive quantitative

assessment of the risks associated with managing

our carbon footprint in line with our continuing

refinement of our NetZeroby40 transition plan

andcarbon reduction glidepath.

We estimated the future cost of carbon under multiple climate

scenarios, including RCP1.9 (Paris Ambition), RCP4.5 (stated

policy) and RCP8.5 (current policy), as well as a number of transition

scenarios including the NGFS transition scenarios and IEA transition

scenarios. For scope 1 emissions, we used projected carbon pricing

for the beverage industry and for scope 2 we used projected

carbon pricing for utilities. We used these projections to estimate

the impact of climate change on future annual operating costs

for generating carbon and applied that to our projected carbon

emissions to 2040 to meet our NetZeroby40 goal as set out in

our NetZeroby40 Roadmap on page 56. This enabled us to create

an internal pricing mechanism so that we could align our capital

expenditure investments with our carbon reduction targets.

For scope 3 emissions, we conducted a deeper assessment of

the costs of packaging (see Principal risk: Sustainable packaging

on page 100) and key ingredients (see Emerging risk: Impact of

climate change on the cost and availability of key ingredients

on page 104) that included estimates of the cost of carbon. All

ingredients and materials will continue to be subject to normal

market forces but, in isolating the effect of climate change, the

most significant will be the cost of carbon emissions. The key

opportunity in reducing our scope 3 emissions is working closely

with our long-term suppliers and customers, including potential

joint investment in low-carbon initiatives.

In addition to the financial costs of meeting our NetZeroby40

commitments, there is a significant opportunity for our business

in meeting or exceeding stakeholder expectations in managing

our carbon footprint. As noted in our assessment of the impact

of our sustainability performance on our reputation on page 106,

an increase in perceptions of our environmental performance has

a direct link to an increase in consumers’ intent to purchase and

therefore sales.

Risk included in viability

assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Quality, Safety

andEnvironment

Timeframe:

Medium to long term (2-5+years)

Link to material issues:

• Climate change

• Sustainable sourcing

• Biodiversity

Risk tolerance:

All business units are expected to have country-specific

emissions reduction targets and roadmaps supported by

decarbonisation plans in place to contribute to the Company’s

NetZeroby40 commitment, developed in collaboration with

Group QSE and Group Sustainability. Residual risk should remain

at or below our ‘low’ rating.

D. Managing climate change risks and opportunities continued

Principal risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 103

D3. Managing our carbon footprint continued

D. Managing climate change risks and opportunities continued

Principal risks and opportunities continued

Key drivers Consequences Mitigation

• Increasing pressure for transparency

on our emissions and actions to

reduce those emissions on us and

our suppliers and customers

• Legal requirements on packaging

recycling content and refillable share

inportfolio

• Legal requirements – linking

sustainability with financial reporting

and investments

• Increasing scrutiny on use of offsets

tomeet net zero targets

• Increasing use of carbon taxes

andtrading schemes to reduce

carbonemissions

• Inability to meet our NetZeroBy40

commitments and the subsequent

impact on the environment and

ourreputation

• Increased costs of scope 1 and 2

emissions that, under an RCP1.9

scenario, we have estimated to

peak at an additional annual cost of

around 39.6m by 2030, reducing to

17.3m annually by 2040.Under an

RCP4.5 scenario, we have estimated

the additional costs to be around

18.8m annually by 2030, reducing

to additional annual cost of 6.2m

by2040.

• Significant capital expenditure over

thelonger term to fund carbon

reduction initiatives

In 2023, we:

• implemented NetZeroBy40 transition

plans, including mitigation and

adaptation plans;

• stress tested adaptation plans against

multiple climate scenarios;

• embedded climate change response

into all business continuity plans;

• enhanced public transparency and

communication of climate change risks

and adaptation plans;

• continued assessment of physical

and transition risks and opportunities

across entire value chain;

• integrated Egyptian operations

intoCCH climate plans and

developedrelevant mitigation

andadaptation measures;

• improved integration of climate-

related risks and adaptation plans into

long-range and strategic planning; and

• continued our preparation for meeting

new regulatory requirements such as

EU Directive on CSDD and EU CSRD.

Metrics and targets Outlook Focus for 2024

• Energy Use Ratio in plants

• % of renewable and clean electricity

and energy used in plants

• % of volume produced certified

according to ISO Environmental

Management System

• Number and percentage of key

suppliers committed to SBTi climate

targets and CDP and are with SSEF

(Supplier Specific Emissions Factors)

• We expect that consumer, customer

and regulatory pressure will continue

to increase and apply pressure

on allcompanies to reduce their

carbonfootprint.

• We expect there will be increased

scrutiny on our sustainability

initiativesfrom regulators and non-

government organisations.

• In 2024, we will further implement

innovations to reduce our carbon

footprint.

Principal risks trend trajectory

Increasing

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 104

Emerging risks

andopportunities

Emerging risk: Impact of extreme weather

onourproduction and distribution

Risk included in viability assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Chief Supply Chain Officer

Timeframe:

Long term (5+ years)

Link to material issues:

• Socio-economic impact

• Climate change

In 2023, we updated our assessment of the potential impact

ofthree different climate change scenarios (RCP1.9, RCP4.5 and

RCP8.5) relating to extreme weather on our plants, using credible

insurance industry data. We specifically assessed projected

increases in flood risk, likelihood of wildfires, precipitation and

drought. We assessed data relating to 63 locations and identified

Emerging risk and opportunity: Impact of climate

change on the cost and availability of key ingredients

Risk included in viability assessment:

Y N

Strategic Growth Pillar:

1 2 3 4 5

Risk owner:

Chief Procurement Officer

Timeframe:

Long term (5+ years)

Link to material issues:

• Sustainable sourcing

• Biodiversity

• Climate change

In 2023, we assessed the impact of climate change on the cost

and availability of ingredients under multiple climate scenarios –

RCP1.9 (Paris Ambition), RCP2.6 (Paris Agreement), RCP4.5 and

RCP8.5 – with a focus on sugar, both from sugar cane and from

sugar beet, as it represents the most significant component of our

ingredientspending.

Principal risks and opportunities continued

17 plants thatwere considered higher risk, requiring capex to upgrade

weather-related mitigation or climate change mitigation. All of those

facilities are already considered higher risk and subject to current

mitigation planning. Only four were assessed as requiring additional

capex as a direct result of climate change. We have estimated that

one-off capex requirements to mitigate the impact of extreme

weather, including the impact of climate change, between now and

2030 is approximately €32 million, of which €5.7 million is required

for climate change risk mitigation as a direct result of an increased

risk of wildfire (two plants) or extreme precipitation (two plants).

We expect increases in insurance premiums as a result of insurance

underwriters considering our facilities’ higher risk of extreme

weather. The SwissRe Institute has estimated that insurance

premiums may increase by 40% for fire and 25% for flood and

precipitation. Assuming insurers apply those premium increases

against facilities considered to be at risk, and not across the

board,we have estimated potential annual increases in insurance

premiums because of climate change to be approximately €1.5

million per annum by 2050, under an RCP4.5 climate scenario,

orby2030 under an RCP8.5 scenario.

During 2023, we completed a comprehensive assessment of

thepotential for business interruption across our top eight plants

(representing approximately 70% of our volume) for any reason,

including climate change. As a result of these assessments, we are

updating our business continuity plans to enhance our ability to

continue to supply our customers at acceptable levels and within

our risk tolerance if reasonably foreseeable disruptive events occur.

In addition to a number of principal risks that we

also consider to be emerging, we have identified the

following emerging risks and opportunities thatmay

not be currently impacting our business but have the

potential to have a significant impact inthe future.

Emerging risks and opportunities:

Impact of extreme weather on our production and distribution

Impact of climate change on the cost and availability

ofkeyingredients

ImpactofArtificialIntelligence

Impact of our sustainability performance on our reputation

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 105

Our assessment indicates that climate change will have a

significant impact on the productive capacity of some existing

growing regions. Brazil for example, which is a primary source of

our cane sugar, is expected to be negatively impacted under most

climate scenarios. Italy, a key source of sugar from sugar beet, is

also likely to be negatively impacted. However, our assessment

also shows that other growing regions for both sugar cane and

sugar beet are likely to be positively impacted by climate change,

increasing their productive capacity. Assuming those regions

leverage that potential productive capacity to fill any gaps in

existing regions, the impact of climatechange is considered

tobeneutral.

Where we do expect changes in the cost of sugar is the increasing

cost of carbon emissions for those industries that are likely to

be passed on through higher input costs to us. This is partially

mitigated by those industries gradually reducing their carbon

footprint, the reduction in our own use of sugar as we move

further towards lower-sugar products, and our ability to pass on

costs in our final products. Our assessment estimates the annual

additional cost of sugar may increase by 17% by 2030 and 10%

by 2040 under a Paris Ambition (RCP1.9) scenario and the annual

additional cost may increase by 3% by 2030 and 1% by 2040 under

a stated policy (RCP4.5) scenario.

As noted in our 2022 assessment, of the other ingredients that

we purchase, coffee and lemon-growing regions are considered

to be at medium to high risk of heat stress under a high-carbon

scenario by 2050. The majority of growers are conducting their

own assessments and developing contingency plans, including

identification of alternative regions for supply. Given the relatively

small amounts of these ingredients that we purchase, these

costs are not considered material.

While we are concerned about the impact of climate change on

ingredients, as all companies in the food and beverage industries

are, physical risks are more likely to have an impact over a longer

timeframe. We therefore have more time to better understand

the potential impact and find ways to adapt to changing

conditions and create appropriate contingency plans.

Emerging risk and opportunity:

ImpactofArtificialIntelligence

Risk included in viability assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Chief Information SecurityOfficer

Timeframe:

Medium (2-5 years)

Link to material issues:

• Socio-economic impact

• Corporate governance andbusinessethics

• Corporatecitizenship

The amount of data we create and consume is increasing

exponentially. With the help of emerging technologies and more

specifically artificial intelligence (AI), we will be able to capture and

analyse internal and external data to help us make more informed

business decisions. The application of AI spans across several

business processes and will support our acceleration, augmentation

and automation of business processes and user experiences.

Examples are planning sales visits, retrieving product information

from store visit photographs and optimizing our transportation.

Recently we also introduced the use of digital assistants for

productivity gains such as summarizing emails.

However, AI technology also poses various risks to the

organisations, society and individuals due to potential misuse

bymalicious actors and potential of unintended consequences.

While we are utilising AI primarily for efficiency gains and

enhancing insights from largely internal data for non-critical

business processes, and while we do not rely only on AI for

decision making, we have assessed the risk associated with AI

to be low. We have existing policies and guidelines, and have

enhanced training and awareness on appropriate use of AI. As a

result, we are comfortable that we have captured the risks and

management of those risks within the existing principal risks

associated with cyber incidents and data privacy.

What remains an emerging risk is the broader use of AI, its

application to external data and the potential over-reliance on

AI as an end-to-end decision support tool. Errors in algorithms

or biases could lead to faulty decisions, affecting our ability to

consistently supply product to our customers. AI could increase

the severity of cyber attacks against our information systems,

leading to violations of rights to privacy of individuals and non-

compliance with privacy requirements of the legal and regulatory

framework. The use of AI could increase the severity of cyber

attacks against our production systems, leading to business

interruption and inability to supply our customers. Our employees

may be concerned about the privacy of their information or

potential loss of jobs with greater automation of financial or

production systems.

In order to mitigate the risk, we have established a cross-

functional team to ensure compliance by design and a robust

governance and operating model to ensure deployed AI

technologies are secure, safe and ethical, and comply with

internal corporate policies. We have developed a process to

monitor the use of AI and will revisit our risk assessment regularly.

Principal risks and opportunities continued

Emerging risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 106

Emerging risk and opportunity: Impact of our

sustainability performance on our reputation

Risk included in viability assessment:

Y N

Strategic Growth pillar:

1 2 3 4 5

Risk owner:

Head of Sustainability

Timeframe:

Long term (5+ years)

Link to material issues:

• Climate change

• Sustainable sourcing

• Packaging and wastemanagement

In 2023, we continued to refine our model for assessing the impact

of meeting, or not meeting, the expectations of key stakeholder

groups on our environmental performance. We considered three

key stakeholder groups in our assessment:

• current and future employees and their willingness to work for

us, which could ultimately impact our ability to attract and retain

talented people;

• investors and their willingness to invest in us, which could impact

our cost of capital; and

• consumers and their willingness to purchase our products.

Of those three groups, we determined that employees and investors

were well aware of our environmental performance through external

ESG ratings. This year we were ranked, for the seventh time, as the

world’s most sustainable beverage company by the Dow Jones

Sustainability Indices (as at 8 December 2023). Our score positions

us in the top 1% of 9,400 companies across 62 industries. We now

have the highest scores and rankings in ten of the most-recognised

ESG ratings including CDP Climate and Water, ISS ESG, MSCI ESG,

Sustainalytics, FTSE4Good and Vigeo Eiris.

These achievements are a great source of pride for our employees.

As a business, we have an opportunity to build greater awareness

amongst consumers of these achievements, and our actions, to

deliver our drinks in more sustainable ways. Research indicates

thatan increase in positive perceptions of our environmental

performance – a higher ‘E-score’ – correlates to an increase in

the likelihood that consumers will purchase our products (intent

to purchase) and conversely a decrease in E-score can reduce

consumers’ intent to purchase. Intent to purchase scores were

usedto determine the impact on our business of meeting,

exceedingor failing to meet expectations.

Our assessment included perceptions of our environmental

performance, or ‘E-score’, for consumers in eight selected markets

and, in comparison, to our direct competitors and other companies

in the food and beverage industry. That assessment indicates that,

as with many large companies in the food and beverage sector,

consumers perceive that there is more we can do to meet their

expectations on environmental performance.

Our assessment indicates that, across the eight selected markets,

the perceived industry leader has an E-score 7 points higher than

ours on average, and, on average, there is a gap of 13 points to an

E-score rating of ‘strong’. Matching the industry leaders in selected

markets could increase consumers’ intent to purchase on average

by 6% and attaining a rating of ‘strong’ on average across our

markets could increase consumers’ intent to purchase by 10.9%.

Ifthis intent to purchase were to translate directly to actual sales,

this represents a very significant opportunity for our business.

We continue to refine our model to better understand the

impact of our environmental initiatives. However, it is clear that

enhancing our environmental initiatives is not only good for the

environment and the communities we serve, but it also makes

good business sense.

Principal risks and opportunities continued

Emerging risks and opportunities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 107

Location of disclosures consistent with TCFD recommendations

In disclosing information related to the risks and opportunities associated with climate change, we considered the 2021 TCFD Implementing Guidance for all sectors and the beverage sector.

Governance: Disclose the Company’s governance around climate-related risks and opportunities Consistency status

a) Describe the Board’s

oversight of climate-related

risks and opportunities

The role of the Social Responsibility Committee of the Board for oversight of climate-related risks and

opportunities is described in pages 150 to 151 The role of the Audit and Risk Committee of the Board for

oversight of all principal and emerging risks, including climate-related risks is outlined in the section ‘Work

and activities’ on page 152 and ‘Managing risk’ on pages 86 and 111.

a) Fully consistent

b) Describe management’s

role in identifying, assessing

and managing climate-related

risks and opportunities

The section ‘D: Managing climate change risk’ on pages 100 to 104 describes the impact of each of the

principal and emerging risks and opportunities related with climate change and the consequences and

mitigation actions, including impact on the Company’s business, strategy and financial planning. The

impact of climate-related risks and opportunities on our business and strategy and the financial planning

changes in managing those risks and opportunities is described in ‘Earn our licence to operate’ particularly

pages 54 to 57 (Climate), page 58 to 60 (Packaging) and page 61 to 62 (Water). Sections C3.3 and C3.4 on

pages 20 to 21 of our 2023 CDP Climate response describe how our assessments of climate-related risks

and opportunities have influenced our strategy and financial planning.

b) Fully consistent

Task Force for Climate-related FinancialDisclosures (TCFD)

Climate change is having and will have a significant

impact on our business in a number of ways. Given the

longer-term nature of climate risks and the number

of variables – many of which we have no control over

– we need to continually update our assessment

and management of risks associated with climate

change as more accurate data becomes available and

organisations around the world respond to its effects.

We follow the guidelines provided by the TCFD as an important

framework for reporting climate-related risks and their financial

impacts. Our TCFD disclosures can be found throughout this

report. The table below, provides a summary of where those

disclosures can be found and how the information is consistent

withthe TCFDrecommendations.

For additional information on our climate-related disclosures,

seeour 2023 CDP submission.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 108

Location of disclosures consistent with TCFD recommendations

Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities

on the Company’s business, strategy and financial planning where material

Consistency status

a) Describe the climate-related

risks and opportunities that

the organisation has identified

over the short, medium and

long term

The section ‘D: Managing climate change risks and opportunities’ on pages 100 to 104 provides a detailed

description of the principal and emerging risks and opportunities that the Company has identified over

the short, medium and long term associated with climate change, and Sections C2.3 and C2.4, on pages

10 to 17 of our 2023 CDP Climate response, describe a number of risks and opportunities associated with

climate change that the Company has identified.

a) Fully consistent

b) Describe management’s

role in identifying, assessing

and managing climate-related

risks and opportunities

The section ‘D: Managing climate change risks and opportunities’ on pages 100 to 104 describes the

impact of each of the principal and emerging risks and opportunities related with climate change and the

consequences and mitigation actions, including impact on the Company’s business, strategy and financial

planning. The impact of climate-related risks and opportunities on our business and strategy and the

financial planning changes in managing those risks and opportunities is described in ‘Earn our licence to

operate’, particularly pages 55 to 54 to 57 (Climate), page 58 to 60 (Packaging) and page 61 to 61 (Water).

Sections C3.3 and C3.4 on page 20-21 of our 2023 CDP Climate response describe how our assessments

of climate-related risks and opportunities have influenced our strategy and financial planning.

b) Fully consistent

c) Describe the resilience of

the organisation’s strategy

considering different

climate-related scenarios,

including a 2-degree or

lowerscenario

The section ‘D: Managing climate change risks and opportunities’ on pages 100 to 104 describes our

assessment of the impact of each of the principal and emerging risks and opportunities associated with

climate change under multiple different climate scenarios, including the RCP1.9 or ‘Paris Ambition’ and

related transition scenarios IEA B2DS and NGFS NZ50 ; and how the Company is mitigating those risks

and opportunities.

c) Fully consistent

Risk management: Disclose how the Company identifies, assesses and manages climate-related risks

andopportunities

Consistency status

a) Describe the Company’s

process for identifying and

assessing climate-related

risksand opportunities

‘Managing risk’ on pages 86 and 111 provides an overview of the Company’s process for identifying all risks

and opportunities, including those relating to climate change, and ‘Managing climate change risks and

opportunities’, on pages 100 to 104 describes those processes specifically relating to the principal and

emerging risks and opportunities related to climate change. Sections 2.1a, 2.1b and 2.2a on pages 7, 8 and

10 of our 2023 CDP Climate response describe the process for identification of the climate-related risks

and opportunities.

a) Fully Consistent

b) Describe the Company’s

process for managing climate-

related risks and opportunities

‘Managing climate change risks and opportunities’, on pages 100 to 104 describes how the Company is

managing the risks and opportunities specifically relating to climate change, particularly in the ‘Mitigation’:

and ‘Focus for 2024’ sections for each of the principal and emerging risks and opportunities.

Key performance indicators on pages 54 to 57 and 72 to 74 relating to the ‘Earn our licence to operate’

pillar describe how the Company is managing climate-related risks and opportunities.

b) Fully consistent

Task Force for Climate-related FinancialDisclosures (TCFD) continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 109

Location of disclosures consistent with TCFD recommendations

c) Describe how these

processes are integrated into

the overall risk management

programme

‘Managing risk’ on pages 86 and 111 provides an overview of how the Company has embedded the

assessment of the risks and opportunities associated with climate change into its enterprise risk

management programme.’Managing climate change risks and opportunities’, on page 100 further

describes how the Company has integrated each of the principal and emerging risks and opportunities

related to climate change into its enterprise risk management programme, and pages 101 to 104 provides

an overview of the outcomes of that process relating to each climate-related risk and opportunity.

c) Fully consistent

Metrics and targets: Disclose the metrics and targets used to assess and manage climate-related

risksandopportunities

Consistency status

a) Disclose the metrics

used by the organisation

to assess climate-related

risks and opportunities in

line with itsstrategy and

riskmanagement process

‘Managing climate change risk’ on pages 100 to 104 provides metrics and targets relating to each of the

principal and emerging risks and opportunities associated with climate change in the ‘Metrics and targets’

section, and key performance indicators on pages 72 to 73 relating to the ‘Earn our licence to operate’

pillar (Mission 2025 commitments), and the sections relating to ‘NetZeroby40’ on page 54, Packaging

onpages 58 to 60 and Water on pages 61 to 62 describe the metrics and targets the Company is using

toassess climate-related risks and opportunities in line with our strategy and risk management process,

and Sections C4.1 and C4.2 on pages 22 to 32 of our 2023 CDP Climate response list a number of metrics

and targets used to assess climate-related risks and opportunities.

a) Fully Consistent

b) Disclose Scope 1, Scope

2, and, if appropriate, Scope

3 greenhouse gas (GHG)

emissions, and the related risks

NetZeroby40 target across the whole value chain charts on page 55 shows our Scope 1, 2 and 3 GHG

emissions. The Principal risk, ‘Managing our carbon footprint’ on pages 103 to 104 describes how we

are managing the risks and opportunities associated with our emissions, Section C5.2 on page 39, and

Section C6 on pages 43 to 49 of our 2023 CDP Climate response provide further detail on Scope 1, 2 and3

emissions and the risks associated with them. In the 2023 GRI Content Index, in the environmental table

on page 54 and as part of the disclosures 305-1 on page 27, 305-2 on page 28, and 305-3 on pages28 to

29, provides details of our GHG emissions.

b) Fully consistent

c) Describe the targets used

by the organisation to manage

climate-related risks and

opportunities, and performance

against targets

Managing climate change risks and opportunities’, on pages 99 to 103 describes targets relating to each

of the principal and emerging risks and opportunities associated with climate change in the ‘Metrics

and targets’ section, and key performance indicators on pages 73 to 75 relating to the ‘Earn our licence

to operate’ pillar (Mission 2025 commitment), and the sections relating to Climate on pages 55 to 56,

Packaging on pages 59 to 61 and Water on page 62 describe the metrics and targets the Company is

using to assess climate-related risks and opportunities and our performance against those targets, and

Sections C4.1 and C4.2 on pages 22 to 32 of our 2023 CDP Climate response list a number of metrics and

targets used to assess climate-related risks and opportunities.

c) Fully consistent

Task Force for Climate-related FinancialDisclosures (TCFD) continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 110

Cause Risk

Agriculture and

ingredients Packaging Manufacturing Distribution

Cold drink

equipment

Customers and

communities

Estimated share of carbon emissions includes Egypt

29% 36% 10% 6% 19%

Business impacts: Physical risks of climate change (risks P1-4) Physical risks

Changes to

weather and

precipitation

patterns

P1: Impact of climate change on the cost

and availability of key ingredients and raw

materials

P1: The effect of changes to weather on the

cost and availability of key ingredients and

raw materials (See Emerging risk: Impact of

climate change on the cost and availability of

keyingredients on page 105)

Extreme

weather events

P2: The effect of extreme weather events

onproduction

P2: The effect of extreme weather events

on production (see Emerging risk: Impact

of extreme weather on our production and

distribution on page 105)

P3: The effect of extreme weather events

ondistribution

P3: The effect of extreme weather events

on distribution (see Emerging risk: Impact

of extreme weather on our production and

distribution on page 105)

Water scarcity

P4: Water availability and usage P4: Water availability and usage (see Principal

Risk: Water availability and usage on page 102)

Business impacts: Risks of transition to a low-carbon economy (risks T1-4) Transition risks

GHG regulation

T1: The effect of changes in GHG

regulationson the cost and availability

ofsustainable packaging

T1: The effect of changes in GHG regulations on the

cost and availability of sustainable packaging (see

Principal Risk: Sustainable packaging on page 101)

T2: The effect of changes in GHG

regulations on the costs of managing our

carbon footprint

T2: The effect of changes in GHG regulations on

the costs of managing our carbon footprint (see

Principal Risk: Managing our carbon footprint on

pages 103 to 104)

Stakeholder

perceptions

of our

sustainability

performance

T3: The effect of stakeholder perceptions

of our sustainability performance on our

corporate reputation.

T3: The effect of stakeholder perceptions of our

sustainability performance on our corporate

reputation (see Emerging risk and opportunity:

Impact of our sustainability performance on our

reputation on page 107)

Water

regulation

T4: The effect of increasing government

regulation on the cost and availability of

water

T4: The effect of increasing government regulation

on the cost and availability of water (see Principal

risk: Water availability and usage on page 102)

The impact of climate change risk

Task Force for Climate-related FinancialDisclosures (TCFD) continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 111

Governance

As noted on page 87, governance of all risks,

including climate change risks, is the responsibility

of our Board and specifically the Audit and

Risk Committee and the Social Responsibility

Committee, following a clearly defined structure

and process from business units, to the Group,

our ELT and the Board.

Strategy

Given the longer-term nature and the implications

of climate change, our response to climate

change transcends all areas of our strategy

and operations. Our future packaging mix, for

example, has significant implications for our

business given the substantial capital investments

in our plants and routes to market needed to make

significant packaging changes. Changes needed

to meet our NetZeroby40 commitments and

the impact of climate change on the availability

and cost of key ingredients have implications for

our supplier base and our distribution systems.

Our response to climate change has a significant

impact on our reputation with key stakeholders

and ultimately our ability to attract and retain

people, and attract capital, as well as the

willingness of consumers to buy our products.

While there are numerous costs associated with

managing climate change risks, we also recognise

that there are significant opportunities for our

business in continuing to meet the needs and

expectations of our stakeholders. As noted in our

assessment of the Impact of our sustainability

performance on our reputation, see page 107,

there is a strong correlation between consumers’

perception of how we are responding to climate

change and their intent to purchase our products.

The longer-term structural changes inherent in

our sustainability strategy is embedded in our

business strategy, which is constantly reviewed

as our understanding of the potential effects of

climate change risks and opportunities improves,

to ensure our business remains resilient and

focused on growth.

Risk assessment

Many of the risks associated with climate change

are common across the global Coca-Cola System.

We therefore take a global system approach to

the identification, assessment and management

of climate-related risks. The Coca-Cola System –

which consists of TCCC and its bottling partners,

of which CCHBC is one of the largest – has

identified eight potentially material risks relating

to the physical and transitional impact of climate

change on our business. We have fully integrated

the assessment and mitigation of these physical

and transition risks associated with climate

change into our risk management programme,

which underpins our robust approach to all risks

toour business.

The Coca-Cola System has identified eight risks –

four physical and four transition risks, as depicted

on the pictogram on page 111,

We analyse our internal data and work with

recognised specialist agencies, our insurance

brokers and insurers to obtain regional analysis

of the potential impact of climate change.

This helps us make informed decisions and

improves our understanding of the potential

climate vulnerabilities in our operations and the

communities in which we operate. This data and

resulting analysis are shared across our business

units, supporting climate resilience across our

planning and operations.

Metrics and targets

We use clear metrics and targets in the

assessment and management of all our risks

in order to continually measure risk drivers, the

potential impact – including the financial impact

ofrisks – and key performance indicators to

ensure we are managing risks effectively. These

are noted under ‘Metrics and targets’ for each

risk. Many of our climate change metrics and

targets are also outlined in our Mission 2025

andNetZeroby40 commitments.

Emissions reduction in line with NetZeroby40

roadmap is a performance target for our ELT

members and senior leaders, impacting at

riskcompensation.

Given the longer-term nature of managing

climate-related risks, our allocation of capex

will be important in meeting our sustainability

targets. We have been increasing our investment

in initiatives designed to mitigate the risks

associated with climate change. In 2023, we

invested €220.3 million in capex initiatives aligned

with our sustainability strategy, which represents

33% of our total capex. We are planning to

increase the allocation of our annual capex to

investments aligned with our sustainability

strategy, expecting to reach 40% of capex by 2025

and 50% of capex by 2030. This demonstrates

our commitment to manage climate-related risks

using a gradual, well-thought-out programme

of capital expenditure over the medium to long

term based on our assessment of the risks to

ourbusiness and stakeholders.

Task Force for Climate-related FinancialDisclosures (TCFD) continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 112

Viability statement

Business model and prospects

Our business model and strategy, outlined on

pages 22 to 23 of this report, documents the

key factors that underpin the evaluation of our

prospects. These factors include our:

• attractive geographic diversity;

• strong sales and execution capabilities;

• ability to innovate;

• market leadership;

• global brands; and

• diverse beverage portfolio.

Macroeconomic conditions, while improving in

the latter stages of 2023, are expected to remain

challenging in the short term. Most forecasts are for

modest short-term growth in most of the countries

that we operate and some easing of inflation, with the

exception of Egypt and Nigeria. The ongoing conflict

between Russia and Ukraine and more recently

the Israel/Palestine conflict and the prospect of

continuing geopolitical instability could continue

to impact the global supply chain and exacerbate

economic challenges. We have considered the

potential future implications of continuing volatility

in macroeconomic and geopolitical conditions in

our financial forecasts tothe extent possible.

While the Board considers that our markets will

continue to face challenges over the medium

to longer term it continues to believe that our

diverse geographic footprint, including exposure

to emerging markets that have low per capita

consumption and therefore greater opportunity

for growth, and a proven strategy in combination

with our leading market position, offer significant

opportunities for future growth.

Confidence in our continuing growthwasalso

reflected in the recent renewal of ourbottler

agreements with TCCC to produce and

distributeit’s global brands.

Our Board has historically applied and continues

toapply a prudent approach to the Group’s

capital management decisions also relating to

major projects and investments. From 2019 to

2023, we generatedfree cash flow of €580 million

peryearon average.

Key assumptions of the business plan

andrelated viability period

The Group maintains a well-established strategic

business planning process which has formed the

basis of the Board’s quantitative assessment of

the Group’s viability, with the plan reflecting our

current strategy over a rolling five-year period.

The financial forecasts in the plan are based on

assumptions for the following:

• key macroeconomic data that could impact our

consumers’ disposable income and consequently

our sales volume and revenues;

• various scenarios relating to the ability of

governments in key markets to manage the

economic conditions in their countries;

• key raw material and other input costs;

• the impact of climate change, particularly

associated with the transition to a lower carbon

economy and the costs of carbon under multiple

climate scenarios (see also pages 101 to 104 for

more information on our quantitative assessments

of the impact of climate change. In addition to 2030

and 2040, we also included interim calculations to

2028 for the purpose of our viability assessment);

• the impact of conflicts such as the Russia-Ukraine

conflict and ongoing instability in the Middle East,

including loss of sales volume and revenues as

a result of TCCC’s suspension of its operations

in Russia;

• foreign exchange rates and FX liquidity in Nigeria

and Egypt; including the economic conditions

affecting the Egyptian Pound, the Nigerian Naira

and the impact of the Russia-Ukraine conflict on

the Russian Rouble;

• spending for production overhead and

operating expenses;

• working capital levels; and

• capital expenditure.

The Board has assessed that a viability period of five

years remains the most appropriate. This is due to

its alignment with the Group’s strategic business

planning cycle, consistency with the evaluated

potential impacts of our principal risks as disclosed on

pages 88 to 107 and our impairment review process,

where goodwill and indefinite-lived intangible assets

are tested based on our five-year forecasts.

Assessment of viability

Qualitatively and quantitatively, we analysed the output

of our robust enterprise risk management, internal

business planning and liquidity management processes,

to ensure that the risks to the Group’s viability are

understood and are being effectively managed.

In late 2023, the Company completed the

acquisition of Brown Forman Finlandia Oy, owner

of the Finlandia vodka brand. An assessment of

key risks has been completed and appropriate

management plans are being implemented to

effectively manage those risks. No risks to the

Group’s viability over the five-year period of this

assessment have been identified as a result of the

acquisition and integration of this business.

The Board has concluded that the Group’s well-

established processes across multiple streams

continue to provide a comprehensive framework

that effectively supports the operational and strategic

objectives of the Group. It also provides a robust basis

for assessment and confirmation of the Group’s

ability to continue operations and meet its obligations

as they fall due over the period ofassessment.

Supporting the qualitative assessment was a

quantitative analysis performed as part of strategic

business planning. This assessment included, but was

not limited to, the Group’s ability to generate cash.

We have continued to stress test the plan against

several severe but plausible downside scenarios

linked to certain principal risks as follows:

Scenario 1:

The impact of changes to foreign exchange rates

was considered, particularly the depreciation of

foreign currencies including the Egyptian Pound,

Nigerian Naira and Russian Rouble, also considering

effects from the Russia-Ukraine conflict. Principal

risks: Foreign exchange fluctuations, Commodity

costs and Geopolitical and security environment.

Scenario 2:

Lower estimates for sales volumes for various

reasons including the continuing difficult

economicconditions in our markets and the

abilityof governments to manage these,

includingthe impact of the continued Russia-

Ukraine conflict and Middle East tensions.

Principal risks: Marketplace economic conditions,

and Geopolitical and security environment.

Scenario 3:

Continued stakeholder focus on issues relating

to sugar and packaging resulting in the potential

for discriminatory taxation. Principal risks:

Product relevance and acceptability, and Cost

andavailability of sustainable packaging.

Scenario 4:

Higher input costs including raw materials

and energy costs. Principal risks: Commodity

costs, Suppliers and sustainable sourcing, and

Marketplace economic conditions.

Scenario 5:

Higher costs of water, carbon and the impact of

extreme weather as a result of the effects of climate

change under multiple climate scenarios, as well

as the increased capital expenditure required to

mitigate risks associated with climate change.

Principal risks: Water availability and usage, Managing

our carbon footprint, Impact of extreme weather

on our production and distribution (Emerging risk).

The above scenarios were tested both in isolation

and in combination. The 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 occurring over the period of the

financial forecasts. This could be conducted by

making adjustments, if required, to our operating

plans within the normal course of business, including

but not limited to adjustments to our operations and

temporary reductions in discretionary spending.

Following a thorough and robust assessment of

the Group’s risks that could threaten our business

model, future performance, solvency or liquidity,

the Board has concluded that the Group is well

positioned to effectively manage its financial,

operational and strategic risks.

Viability statement

Based on our assessment of the Group’s prospects,

business model and viability as outlined above, the

Directors can confirm that they have a reasonable

expectation that the Group will be able to continue

operating and meet its liabilities as they fall due over

the five-year period ending 31 December 2028.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 113

Non-financial reporting

Open up moments that refresh us all.

Serving as our North Star ambition to guide

everything we do.

Our purpose

The purpose recognises that, while

our work requires sealing beverages

in, the real magic happens when

they are opened up: opening up new

markets, new relationships and new

ideas for a better future.

Underpinning our business and setting the

direction for how we achieve our goals.

Values

• Customer first

• Make it simple

• We over I

• Deliver sustainably

Policies

Environmental matters

• Biodiversity Statement

• Climate Change Policy

• Environmental Policy

• Food Loss and Waste Policy

• Packaging waste management Policy

• Principles for Sustainable Agriculture

• Water Stewardship Policy

Employees

• Code of Business Conduct

• Diversity and Inclusion Policy

• Occupational Health and Safety Policy

• Quality and Food Safety Policy

Human rights

• Human Rights Policy

• Slavery and Human Trafficking statement

• Supplier Guiding Principles

Social matters

• Code of Business Conduct

• Community Contributions Policy

• GMO position statement

• Health and Wellness Policy

• HIV/AIDS Policy

• Premium Spirits Responsible Marketing Policy

• Public Policy Engagement Policy

• Quality and Food Safety Policy

• Supplier Guiding Principles

Anti-bribery and corruption

• Anti-bribery Policy and Compliance Handbook

• Code of Business Conduct

• Community Contributions Policy

• Supplier Guiding Principles

• Whistleblowing Policy

Principal risk

• Risk Policy

Delivering

24/7 takes

anintegrated

approach

This spread constitutes our

non-financial information

statement. The below

information provides page

references mapping out how

our report complies with

relevant regulation on non-

financial information. This

information issupplementary.

Our purpose Policies and values

Read more p 9-11 Read more p 10

see our website

OPEN UP

MOMENTS

THAT

REFRESH

US ALL

REFRESH

US ALL

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 114

Non-financial reporting continued

Being conscious of stakeholders, risks, market

changes and material issues, while responding

through our business model in a positive way.

Business model

Stakeholder engagement

Market trends

• Regulatory environment

• Sustainability

Principal risks

Material issues

GRI Content Index

The GRI Content Index can be downloaded at

coca-colahellenic.com/IAR2023

To fulfil our Growth Story 2025, we will execute

on each of our five growth pillars, considering all

stakeholders at every step of the journey.

Growth pillars

Leverage our unique 24/7 portfolio

Win in the marketplace

Fuel growth through competitiveness

and investment

Cultivate the potential of our people

Earn our licence to operate

Operating in a sustainable way to ensure our

remuneration and sustainability commitments

are interlinked.

Remuneration report

The CEO’s individual performance is measured

in key strategic areas and taken into account

for MIP. These strategic areas include the

Company’s performance in ESG benchmarks.

We now have the highest scores and rankings

in ten of the most-recognised ESG ratings,

including DJSI, MSCI ESG, FTSE4Good, ISS ESG,

and V.E. The PSP contains metrics linked to a

reduction in CO

emissions. The CO

emissions

target in the PSP implicitly captures reduction

in plastics, which was a key driver of its selection

as a metric.

See pages 178 to 179

CEO pay ratio

See page 182

Mission 2025 sustainability

commitments

• Emissions reduction

• Water reduction and stewardship

• World Without Waste (Packaging)

• Ingredient sourcing

• Nutrition

• Our people and communities

Our Board and senior management ensure we

stay on course to achieve our vision.

The Executive Leadership Team

How our Board considers stakeholders in

decision making

Social Responsibility Committee

Effective oversight Executing our visionPositive influence Defining our success

Read more p22 to 23 Read more p11 Read more p158 to 183

Read more p88 to 107

Read more p140 to 142

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 115

As of 1 January 2023, we must comply

with the new requirements of Art. 964a

of the Swiss Code of Obligations (CO)

regarding the report on non-financial

matters as well as to the due diligence

and transparency requirements

according to Art. 964j-l CO in relation

to minerals and metals from conflict-

affected areas and child labour.

Report on non-financial matters as per

Art. 964a CO

The report on non-financial matters must

according to Swiss law contain information on

the following topics: environment matters, in

particular the CO

goals, social issues, employee-

related issues, respect for human rights and

combating corruption.

This Integrated Annual Report has been prepared

in accordance with the GRI Standards (2021).

The following sections give information on the

topics as required under Art. 964b CO. The vote

on the non-financial report under Swiss statutory

law at the annual general meeting is limited to the

content of these sections:

General information required to understand

our business

• Section ‘Business overview’ on pages 2-4 of the

2023 IAR

• Our vision and purpose: page 11 of the 2023 IAR

Description of the business model

• Section ‘Our business model’ on pages 22-23

and ‘Stakeholder engagement’ on pages 12-18

of the 2023 IAR; disclosure 2-6 of the 2023 GRI

Content Index

Environmental matters (incl. CO

goals)

• Environmental policies on our website

• Biodiversity statement

• Climate change policy

• Environmental policy

• Food loss and waste policy

• Packaging and waste management policy

• Principles for sustainable agriculture

• Water stewardship policy

• Section ‘Earn our licence to operate’ on pages

52-68, section ‘Non-financial reporting’ on page

114 of the 2023 IAR

• Environmental table of the 2023 GRI Content

Index (pages 51-55); sections 201-2 Financial

implications and other risks and opportunities

due to climate change, 301-3 Reclaimed

products and their packaging materials,

all sections GR 302 Energy, GRI 303 Water

and Effluents, GRI 304 Biodiversity, GRI 305

Emissions, GRI 306 Waste, and GRI 308 Supplier

environmental assessment of the 2023 GRI

Content Index

• Section ‘Managing risks’ on pages 86-87,

subsection ‘Managing climate change risks and

opportunities on pages 100-112

Social issues

• Social policies on our website

• Community contributions policy

• Health and wellness policy

• Occupational health and safety policy

• Responsible marketing policy for alcoholic

beverages

• Quality and food safety policy

• Hiv and aids policy

• Supplier guiding principles

• Principles for sustainable agriculture

• Section ‘Earn our licence to operate’ on pages

61-68, section ‘Non-financial reporting’ on

page 114, section ‘Cultivate the potential of our

people’ on pages 45-51 of the 2023 IAR

• Social table of the 2023 GRI Content Index

(pages 56-57); all sections GRI 413 Local

communities, GRI 414 Supplier social

assessment, GRI 416 Customer health and

safety, GRI 417 Marketing and labelling, GRI

418 Customer privacy of the 2023 GRI Content

Index

• ‘Section ‘Managing risks’ on pages 86-87,

section ‘Principle risks and opportunities’ on

pages 88-104 of the 2023 IAR

Employee-related issues

• Policies on our website

• Occupational health and safety policy

• Inclusion and diversity policy

• Whistleblowing policy

• Quality and food safety policy

• Section ‘Non-financial reporting’ on page 114 of

the 2023 IAR

• Section ‘Cultivate the potential of our people’

on pages 45-51 of the 2023 IAR

• Social table of the 2023 GRI Content Index

(pages 56-57); sections 2-7 Employees, 2-19

Remuneration policies, 2-21 Annual total

Compensation ratio, 2-30 Collective bargaining

agreements, all sections GRI 401 Employment,

GRI 402 Labour/Management relations, GRI

403 Occupational health and safety, GRI 404

Training and education, GRI 405 Diversity and

equal opportunity, GRI 406 Non-discrimination,

GRI 407 Freedom of association and collective

bargaining of the 2023 GRI Content Index

Non-Financial Reporting under Swiss statutory law

• Section ‘Managing risks’ on pages 86-87,

section ‘Principle risks and opportunities’ on

pages 88-104 of the 2023 IAR

Respect for human rights

• Human rights policies on our website

• Human rights policy

• Human rights policy managers guide

• Slavery and human trafficking statement

• Inclusion and diversity policy

• Whistleblowing policy

• Section ‘Non-financial reporting’ on page 114 of

the 2023 IAR

• Social table of the 2023 GRI Content Index

(pages 56-57); sections 2-26 Mechanisms

for seeking advice and raising concerns, all

sections GRI 408 Child Labor, GRI 409 Forced

or compulsory labour, GRI 414 Supplier social

assessment of the 2023 GRI Content Index

• Section ‘Managing risks’ on pages 86-87 of the

2023 IAR

Combating corruption

• Policy on our website

• Antibribery policy

• Code of business conduct

• Supplier guiding principles

• Community contributions policy

• Whistleblowing policy

• Section ‘Non-financial reporting’ on page 114 of

the 2023 IAR

• Sections 2-27 Compliance with Laws and

Regulations, 3-3 Management of material topics

(Anti-corruption) on page 18, 205-1 Operations

assessed for risks related to corruption, 205-2

Communication and training about anti-

corruption policies and procedures, 205-3

Confirmed incidents of corruption and actions

taken, 206-1 Legal actions for anti-competitive

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 116

Non-Financial Reporting under Swiss statutory law continued

behaviour, anti-trust, and monopoly practices

of the 2023 GRI Content Index

Main performance indicators

• Section ‘Mission 2025’ on pages 72-74, ‘Earn our

licence to operate’ on pages 54-55, ‘Cultivate

the potential of our people’ on pages 47-49 of

the 2023 IAR

• Section ‘Tracking our progress’ on pages 69-

74, ‘Business conduct and anti-bribery’ and

‘Whistleblowing’ on page 157 of the 2023 IAR

References to national, European

orinternational regulations

• Section ‘About our report’ on page 313, ‘EU

Taxonomy’ on pages 117-118, SASB Index on

pages 119-121 of the 2023 IAR

Reporting on compliance with

due diligence and transparency

requirements in relation to

conflictminerals and child labour

We have determined that we are exempt from

the due diligence and reporting the obligations

in relation to minerals and metals from conflict-

affected areas as we do not place in free

circulation or process any minerals or metals

asdefined in Art. 964j CO.

Concerning the due diligence and reporting

obligations in relation to child labour under Swiss

law (Art. 964j et seqq. CO), we comply and adhere

with the ILO Conventions Nos 138 and 182 as well

as the ILO-IOE Child Labour Guidance Tool for

Business of 15 December 2015 as well as the UN

Guiding Principles on Business and Human Rights,

as noted in our Human Rights Policy available on

our website andtherefore we conclude, that we

are exempt from reporting in accordance with the

Swiss law regulations in respect of child labour

according to Art. 964j CO.”

Anastassis G. David

Chairman of the Board

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 117

EU taxonomy

Supporting a more

sustainableeconomy

As part of the EU’s plan to direct

investments towards a more sustainable

economy that aligns with the European

Green Deal, the European Commission

defined a classification system of

sustainable activities under taxonomy

regulation in 2020. The EU taxonomy

regulation creates a common definition

of environmentally sustainable economic

activities to be used by investors,

corporates, policymakers and

otherstakeholders.

Climate change mitigation and climate change

adaptation environmental objectives were set out

in the Climate Delegated Acts

, and apply since

2022, while the remaining four objectives came

into force in June 2023 under the Environmental

Delegated Act

, and are effective from 2024

onwards. For each of these objectives, the

Delegated Acts define which activities are eligible.

For an economic activity to be considered aligned

with EU taxonomy, however, it needs to meet

all the below: a) to substantially contribute to at

least one environmental objective; b) to meet the

technical screening criteria (TSC) defined for per

activity; c) to do no significant harm to any of the

remaining objectives; and d) to comply with the

minimum social safeguards.

Relevance to Coca-Cola HBC

As a company domiciled in Switzerland, we are

not subject to the EU Non-Financial Reporting

Directive and hence are not currently required

to report following the EU taxonomy. However,

in line with our practice to provide stakeholders

with high-quality and value-adding ESG data, we

have decided to voluntarily publish key information

related to EU taxonomy for 2023. This is the result

of the preparatory work we have been doing,

in anticipation of the mandatory EU taxonomy

disclosure next year, as CCH falls into the

expanded scope of the Corporate Sustainability

Reporting Directive, introduced in January 2024.

Taxonomy eligibility assessment

According to the EU taxonomy Delegated Acts,

our main economic activity of ‘Food and beverage

manufacturing’ is not considered eligible for EU

taxonomy. It is important to note that non-eligibility

simply refers to the fact that an economic activity

is not in scope of the EU taxonomy and should not

be considered as indicative of ESG performance.

Following a thorough assessment of economic

activities across territory, we have mapped some of

our investments and operational expenses deriving

from these investments with secondary activities

under the objectives of ‘transition to a circular

economy’ and ‘climate change mitigation’.

According to the Environmental Delegated Act, the

Gaglianico plant fits the criteria of eligibility under

the ‘1.1 Manufacture of plastic packaging goods’

economic activity, significantly contributing to the

‘transition to a circular economy’ environmental

objective. To enable the transition of the Italian

market to 100% rPET

, we have invested €30

million to convert the old Gaglianico factory

into an innovative hub, which transforms up to

30,000 tonnes of post-consumer PET per year

into new 100% recycled PET preforms, covering

the beverage bottling needs in the country. The

site is fully powered by electricity from 100%

renewable sources, leading to a reduction in the

emissions of producing a preform by up to

70% compared with virgin plastic. Even if it is not

required to disclose alignment for the first year of

implementation of the Environmental Delegated

Act, we have performed a preliminary assessment

and are proud to share that the Gaglianico plant

meets all technical screening criteria. In 2024,

we will fully evaluate theDo No Significant Harm

(DNSH) criteria and take necessary action to

mitigate potential gaps, if any.

We are committed to achieving net zero emissions

by 2040 across our value chain. One of the key drivers

to reduce scope 3 emissions is the investment

in energy-efficient coolers. At the end of 2023,

55% of all coolers in our markets excluding Egypt

were energy efficient, reducing greenhouse gas

emissions by 127,461 tonnes compared with our

2017 baseline. This activity qualifies as eligible

for EU taxonomy purposes, under economic

activity ‘7.3 Installation, maintenance and repair

of energy efficiency equipment’, significantly

contributing to the climate change mitigation

environmentalobjective. However, as coolers

are purchased from third parties, we were not

able to collect all information required to assess

alignment with the relevant DNSH criteria, and we

report zero alignment for this economic activity.

Our continuous investment in green fleet is

also considered eligible for EU taxonomy under

economic activity ‘6.5 Transport by motorbikes,

passenger cars and light commercial vehicles’,

significantly contributing to the climate change

mitigation environmental objective. In 2023, we

continued the transition to electric and hybrid

vehicles, which now comprise 44% of our light

fleet, compared with 28% in 2022. In total, we

have reduced the carbon footprint of our fleet

compared with our baseline (2017) by 43,743

tonnes of CO

. Even if we could assess the relevant

TSC for alignment, we were not able to obtain

the required information for the implementation

ofthe DNSH requirements from our suppliers.

Thus, we will prudently consider zero alignment

for this economic activity for 2023.

Investment in charging stations is also

eligibleasper economic activity ‘7.4 Installation,

maintenance and repair of charging stations for

electric vehicles in buildings (and parking spaces

attached to buildings)’, but not aligned.

Finally, Capex and Opex related to buildings

ownedorleased under right-of-use are captured

inthe‘7.7 Acquisition and ownership of buildings’

eligible activity.

Minimum social safeguards have also been

assessed

and any limited gaps regarding

human rights due diligence, anti-corruption,

taxation compliance, and fair competition will be

addressedin view of the next reporting period.

The table below contains all our economic

activities that have been identified as EU

taxonomy eligible, whilst none can currently be

considered EU taxonomy aligned. Given that our

secondary economic activities are not revenue

generating, the percentage of eligible turnover is

zero. However, we are presenting the percentage

of eligible Capex and Opex following the

definitions of EU taxonomy regulation.

It is important to note that the Capex denominator

in 2023 includes €204.4 million (out of total of

€901.3 million) as additions inintangible assets

coming from the acquisition ofFinlandia.

1. Commission Delegated Regulation (EU) 2021/2139, CommissionDelegated Regulation (EU) 2023/2485.

2. Commission Delegated Regulation (EU) 2023/2486.

3. Excluding Water.

4. Assessment based on the ‘Final Report on Minimum Safeguards’ published by the Platform on Sustainable Finance (PSF) in October 2022, in the absence of further guidance from the European Commission.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 118

EU taxonomy continued

EU taxonomy-eligible but not taxonomy-aligned activities

Substantial contribution to environmental objective % turnover % Capex % Opex

1. Manufacturing

1.1 Manufacture of plastic packaging goods Transition to a circular economy – 0.13% 0.11%

6. Transport

6.5 Transport by motorbikes, passenger cars and light commercial vehicles Climate change mitigation – 3.65% 7.73%

7. Construction and real estate activities

7.3 Installation, maintenance and repair of energy efficiency equipment Climate change mitigation – 11.60% 16.68%

7.4 Installation, maintenance and repair of charging stations for electric

vehiclesinbuildings (and parking spaces attached to buildings)

Climate change mitigation – 0.01% –

7.7 Acquisition and ownership of buildings Climate change mitigation – 4.10% 11.18%

Total taxonomy-eligible but not taxonomy-aligned activities – 19.49% 35.70%

Next steps

EU taxonomy regulation is still evolving, and we remain alert for any amendments to the existing Delegated Acts or the introduction of new ones. As we work towards meeting our NetZeroBy40 commitment,

we aspire to improve alignment with EU taxonomy by cooperating closely with our suppliers and by addressing any gaps identified. Undoubtedly, in the case that our main economic activity of food and beverage

manufacturing will be included in future Delegated Acts, it will be considered eligible, hence expanding the scope ofthe EU taxonomy application for CCH.

Finally, the implementation of the CSRD earlier this year will significantly increase the sustainability disclosure requirements. Building on the strong foundation of robust ESG reporting over many years, we are

committed to carrying out all the necessary implementation activities that will facilitate and ensure CSRD compliance forfinancial year 2024.

1. Turnover, Capex and Opex % have been calculated following the EU taxonomy guidelines.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 119

SASB index

The majority of the information required by the Sustainability Accounting Standards Board (SASB) framework is included in the 2023 IAR and the 2023 GRI Content Index. Part of the information refers to our

public website https://www.coca-colahellenic.com/

Coca-Cola HBC AG 2023 IAR has been prepared in accordance with the Global Reporting Initiative Standards (GRI Universal Standards 2021). It has been independently assured by PwC. The independent

assurance statement is on pages 302 to 309 of the 2023 IAR.

All the numbers refer to total CCHBC markets including Egypt unless otherwise stated. Currently, we do not track all metrics included in the Non-Alcoholic Beverages Standards and will work towards including

more data in the future.

Table 1. Sustainability disclosure topics and accounting metrics

Topic Accounting metric Category Unit of measure Code Response

Fleet fuel

management

Fleet fuel consumed

Quantitative

Gigajoules (GJ)

FB-NB-110a.1

1,171,751

Percentage renewable Percentage (%) 0%

Energy management

Operational energy consumed

Quantitative

Gigajoules (GJ)

FB-NB-130a.1

6,262,163

Percentage grid electricity Percentage (%) 38%

Percentage renewable Percentage (%) 36%

Water management

Total water withdrawn

Quantitative

Thousand cubic

metres (m³)

FB-NB-140a.1

29,764

Total water consumed

Thousand cubic

metres (m³)

17,941

and percentage of each in regions with High or

Extremely High Baseline Water Stress

Percentage (%) 31% (excluding Egypt)

Description of water management risks and

discussion of strategies and practices to mitigate

those risks

Discussion

and analysis

n/a FB-NB-140a.2

2023 IAR, Water section, Managing Risk, and TCFD sections.

2023 GRI Content Index (GRI 303: Water and Effluents).

Our water management practices don’t result in tradeoffs in land

use, energy production, and greenhouse gas (GHG) emissions.

CCHBC website – Water stewarship ( https://www.coca-

colahellenic.com/en/a-more-sustainable-future/mission-2025/

water-reduction-and-stewardship)

Health and nutrition

Revenue from: zero- and low-calorie beverages

Quantitative

EUR

FB-NB-260a.1

€1,507.7 million only from SSD portfolio,

21.3% of total SSD revenue

No added sugar beverages EUR

Not reported; we report towards our Mission 2025 commitment

forcalorie reduction per 100ml SSD by 25% (2025 vs 2015): in 2023

wereduced the calories in our SSD by 19% vs 2015.

Artificially sweetened beverages EUR

CCHBC website – Sustainability section – Nutrition (https://

www.coca-colahellenic.com/en/a-more-sustainable-future/

mission-2025/nutrition)

Not reported

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 120

SASB index continued

Table 1. Sustainability disclosure topics and accounting metrics continued

Topic Accounting metric Category Unit of measure Code Response

Product labelling

andmarketing

Percentage of advertising impressions (1) made

on children and (2) made on children promoting

products that meet dietary guidelines

Quantitative Percentage (%) FB-NB-270a.1

Not reported. As a member of both the Coca-Cola System and

UNESDA, we abide by the respective responsible marketing

guidelines. In addition, we have a responsible marketing policy

for alcoholic beverages, while our strategic approach towards

marketing to children is covered by our health and wellness policy.

• https://www.unesda.eu/advertising-marketing-practices/

• Health and Wellness Policy (https://www.coca-colahellenic.

com/en/about-us/corporate-governance/policies/health-

wellness-policy)

• Responsible Marketing Policy for Alcoholic Beverages (https://

www.coca-colahellenic.com/en/about-us/corporate-

governance/policies/responsible-marketing-policy-for-

alcoholic-beverages)

Revenue from products labelled as (1) containing

genetically modified organisms (GMOs) and

(2)non-GMO

Quantitative

Reporting

currency

FB-NB-270a.2

(1) None – we don’t produce/sell GMO products.

(2) Non-GMO: €10,184 million (100% of the portfolio).

CCHBC website – GMO Policy (https://www.coca-colahellenic.

com/en/about-us/corporate-governance/policies/genetically-

modified-organism-position-statement)

Number of incidents of non-compliance with industry

or regulatory labelling and/or marketing codes

Quantitative Number FB-NB-270a.3

12 incidents of non-compliance with regulatory labelling and

6 isolated incidents in 2 out of 17 business units with industry

marketing codes in 2023, with mitigation plans in place for all of

the above incidents. 4 out of 6 mitigation actions (67%) were

already completed by February 2024.

Refer to the 2023 GRI Content Index (417-2 and 417-3).

Total amount of monetary losses as a result of legal

proceedings associated with marketing and/or

labelling practices

Quantitative

Reporting

currency

FB-NB-270a.4

Total amount of monetary losses: €1,733.58 in 2023.

Refer to the 2023 GRI Content Index (417-2 and 417-3).

Packaging lifecycle

management

Total weight of packaging Metric tonnes (t) 964,319

(2) Percentage made from recycled and/or

renewablematerials

Quantitative Percentage (%)

FB-NB-410a.1

16% rPET (placed on the market); 31% recycled glass; 47%

recycled aluminium

(3) Percentage that is recyclable, reusable,

and/or compostable

Percentage (%)

100% of primary packaging (recyclable by design)

Discussion of strategies to reduce the environmental

impact of packaging throughout its lifecycle

Discussion

and analysis

n/a FB-NB-410a.2

CCHBC website – Sustainability section – World without waste

(https://www.coca-colahellenic.com/en/a-more-sustainable-

future/mission-2025/world-without-waste)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 121

SASB index continued

Table 1. Sustainability disclosure topics and accounting metrics continued

Topic Accounting metric Category Unit of measure Code Response

Environmental

and social impacts

of ingredient

supplychain

Suppliers’ social and environmental responsibility

audit: non-conformance rate and associated

corrective action rate for (a) major and (b) minor

non-conformances

Quantitative Rate FB-NB-430a.1

2023 GRI Content Index (2-6, 308-1, 308-2, 407-1, 408-1, 409-1,

414-1, 414-2).

CCHBC website – Sustainable sourcing and Our suppliers

sections (https://www.coca-colahellenic.com/en/about-us/

what-we-do/supply-chain)

CCHBC website – Sustainability section – Sourcing

(https://www.coca-colahellenic.com/en/a-more-sustainable-

future/mission-2025/sourcing)

CCHBC website – Supplier Guiding Principles (https://www.coca-

colahellenic.com/en/about-us/corporate-governance/policies/

supplier-guiding-principles)

Ingredient sourcing

Percentage of beverage ingredients sourced

from regions with High or Extremely High Baseline

WaterStress

Quantitative

Percentage (%)

bycost

FB-NB-440a.1

1.3% of ingredients of suppliers spend (on total spend) is in high/

very high water risk areas, as per our assessment by using WWF

Water Risk Filter.

3.4% of ingredients of suppliers spend (on total ingredients spend)

is in high/very high water risk areas, as per our assessment by using

WWF Water Risk Filter.

List of priority beverage ingredients and

descriptionofsourcing risks due to environmental

andsocial considerations

Discussion

andAnalysis

n/a FB-NB-440a.2

CCHBC website – Sustainability section – Sourcing

(https://www.coca-colahellenic.com/en/a-more-sustainable-

future/mission-2025/sourcing)

2023 GRI Content Index (2-6, 308-1, 308-2, 407-1, 408-1, 409-1,

414-1, 414-2).

CCHBC website – Sustainable sourcing and Our suppliers

sections (https://www.coca-colahellenic.com/en/about-us/

what-we-do/supply-chain)

Table 2. Activity Metrics

Topic Accounting metric Category Unit of measure Code Response

Volume of

productssold Quantitative

Millions of

hectolitres (Mhl) FB-NB-000.A 16,012.33

Number of

production facilities Quantitative Number FB-NB-000.B 60 production facilities for non-alcoholic beverages

Total fleet road

miles travelled Quantitative Kilometres FB-NB-000.C 387,262,652

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 122

Governance at a glance

Corporate Governance Compliance statement

As a Swiss corporation listed on the London Stock Exchange (LSE) with a secondary listing on the Athens Exchange,

we aim to ensure that our corporate governance systems remain in line with international best practices. Our

corporate governance standards and procedures are continuously reviewed in light of current developments and

rulemaking processes in the UK, Switzerland and also the EU. Find out more on pages 127 to 129.

Nationalities

American 1 8%

American/Brazilian 1 8%

British 5 38%

Bulgarian 1 8%

Croatian 1 8%

Greek 2 15%

Nigerian 1 8%

Swiss 1 8%

Men

8 62%

Women

5 38%

Board gender diversity

(number and %)

TCCC

KAR-Tess Holding

Free ﬂoat

Shareholder structure

(%)

Independent NEDs

6 46%

NEDs

Executive directors

6 46%

1 8%

Board Independence

(number and %)

Tenure (years)

1–2

2–3

3–4

5– 6

6–7

7–8

8–9

9–10

17–18

15%

Corporate

Governance

Report

Compliance with the UK Corporate Governance Code

Board Leadership and CompanyPurpose

A Effectiveand entrepreneurial Board to promote the long-term sustainable success oftheCompany,

generating value for shareholdersand contributing towider society.

B. Purpose, values and strategy with alignment to culture.

C. Resources for the Company to meet its objectives and measure performance.

Controlsframeworkfor management and assessment of risks.

D. Effective engagement with shareholders and stakeholders.

E. Consistency of workforcepolicies and practices to support long-termsustainable success:

• Letter from the Chair of the Board

• Board Leadership and Company Purpose

• Strategic Report

• Engaging with our key stakeholders

• Culture in action

• Overseeing strategic delivery

• Audit and Risk Committee

• Conflicts of interest

124

5,124

133

134-135

138

136

157

129

Division of Responsibilities

F. Leadership of Board by Chair

G. Board composition and responsibilities

H. Role of NEDs.

I. Company’s policies, processes, information, timeand resources:

• Board composition

• Key roles and responsibilities

• Division of responsibilities for the Board

• Support and training for the Board

• Board appointments and succession planning

128

139

148

Composition, succession and evaluation

J. Board appointments andsuccession plans for Board and seniormanagement andpromotion ofdiversity.

K. Skills, experience andknowledge of Board and length of service of Board as awhole.

L. Annual evaluation of Board,Committees and Directorsand demonstration ofwhethereach Director

continues to contributeeffectively:

• Board composition

• Application of the Company’s corporate governance practices

• Diversity, tenure and experience

• Performance evaluation of the Board

• Nomination Committee

128

127

123, 149

150

146

Audit, risk and internal controls

M. Independence and effectiveness of internal and external audit functions andintegrity of financial and

narrative statements.

N. Fair, balanced and understandable assessment of the Company’s position andprospects.

O. Risk management and internal control framework and principal risks the Company is willing to take

toachieveitslong-term objectives:

• Audit and Risk Committee 157

• Strategic Report 86-107

• Fair, balanced and understandable Annual Report 154, 155, 185

• Going concern basis of accounting 185

• Viability statement 113

Remuneration

P. Remuneration policies and practicesto support strategy and promote long-term sustainable

success with executive remuneration aligned to Company purpose and values.

Q. Procedure for Executive Director and senior management remuneration.

R. Authorisation of remuneration outcomes:

• Remuneration Committee report 159

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 123

Letter from the Chair of the Board

Dear Stakeholder,

It is my pleasure to share this Corporate

Governance Report, which details robust

governance arrangements throughout the Group,

alongside key updates and decisions undertaken

by the Board during 2023.

2023 was a successful year for Coca-Cola HBC,

despite the ongoing challenges of high inflation

and the conflict in Ukraine. The Company

continued the momentum of 2022 into 2023,

focusing on the health and safety of our people

across the business and reacting to cost

pressures with measured and focused price and

mix changes. Underpinned by the introduction of

our clear purpose and the consistent application

of our 24/7 beverage strategy, Zoran and our

executive team have delivered another year of

strong operational and strategic progress and

record financial results.

Leading with purpose

In March, I had the pleasure of attending, alongside

other members of the Board, our senior leadership

conferencein Cairo.This was a significantmeeting

for the Company, our first in four years where

we’d been able to bring together our team to unify

around some common objectives and celebrate

the progress we’ve made since 2019. Our people

have consistently risen to the challenges presented

over the last few years. This was passionately

showcased by all disciplines within the business

and hosted with grace and professionalism by our

Egyptian team, the latest country to join our Group.

At the event we were joined by many members of

The Coca-Cola Company and other key partners

who also shared their thoughts on the future of

ourbusiness.

The governance

imperative in

times ofchange

The leadership conference showcased how

our talented, passionate people have adapted

and embraced opportunities, ensuring that our

company continues to be resilient and enjoy such

a strong performance.

The event also showcased our new purpose,

endorsed by the Board – to open up moments that

refresh us all. This revision provides greater clarity

and inspiration, and also supports our alignment

with the Coca-Cola System.

The long-term success of our business remains

connected to the success of our customers and

partners, and our ability to delight consumers with

the beverages and brands that they love. We are

able to accomplish this due to our well-embedded,

values-based culture.The Board plays a critical role

in shaping the culture of the Company by promoting

growth-focused and values-based conduct and

ensuring increased focus on continued learning and

the smart risk taking necessary for theCompany’s

adaptation. The Board isoverseeing thedevelopment

and implementation of a new culture manifesto and

leadership model, ensuring that the revised purpose

is well-embedded in the Company’s culture.

We monitor our progress in integrating our values

through various indicators, including our employee

engagement index, diversity indicators, and health

and safety indicators, and our Directors lead by

example as ambassadors of our values, cascading

good behaviour throughout the organisation.

One all-employee pulse survey, one culture and

engagement survey and two Collaborating for

Impact surveys were conducted in 2023. While

Charlotte Boyle is our designated non-Executive

Director responsible for engaging with our people

to provide feedback to the Board, feedback from

our people through these surveys was brought

to the full Board’s attention in 2023 to facilitate

understanding of the concerns raised and ensure

a rapid response.

The Board and Iwould liketo thank our leadership

and allour colleagues for making Coca-Cola HBC

a better business every day, working together as

a team, delivering our Growth Story and making

impressive progress on our journey of becoming

the leading 24/7 beverage partner.

Seizing opportunities

In 2022 we acquired the Coca-Cola bottler in

Egypt expanding our footprint in long-term high-

growth markets. A key priority for the Board during

2023 has been the successful integration of the

business into the Coca-Cola HBC family and I am

pleased toreport that has gone very well. Despite

the challenging macroeconomic conditions in

the country in 2023, we remain confident for the

prospects of our business in Egypt .

In 2023 we undertook a different type of acquisition

with the purchase of Finlandia, a superb vodka

business, from our long-termpartner, Brown-

Forman. Zoran and the team have started

integration of the business and we expect

significant growth opportunities to come as we

build-out this excellent brand across our footprint.

Protecting our people

The Board is constantly vigilantof the ongoing

conflict in Ukraine. First and foremost, we are

focused on protecting our employees and

ensuring, in so far as possible, their health and

safety. We believe that the decisions we have

taken to date achieve the best balance for our

team on the ground and our wider stakeholders.

We continue to monitor matters closely and will

take further actions if needed.

In 2023, the Board has

carefullysought to position

ourcompany for continued

success, preparing to anticipate

and seize opportunities,

endeavouring to overcome

challenges and continuing to

focuson good governance: doing

what is right over what is easy.”

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 124

Presenting at our

Investor Day in May

Letter from the Chair of the Board continued

Strategy and performance

Our Growth Story 2025 has remained a

cornerstone for the business throughout

2023. We continue to prioritise the actions and

investments that strengthen our capabilities and

position the Company for sustained success.

Our performance in 2023 demonstrated the

benefits of our approach. Coca-Cola HBC

delivered strong financial performance with

record levels of revenue and comparable EBIT,

with a good margin improvement, strong free

cashflow reaching alltime high and improved ROIC.

I was pleased to launch proceedings at our investor

day in May in Rome, where Zoran, Ben, Naya and

the team outlined the many actions we are taking

to drive revenue growth, margin improvements and

sustainedstrong cash generation. The Board fully

supports the raised mid-term guidance Zoran and

the team shared with you at the time. Delivering

these goals will not be easy, but we have laid strong

foundations with sustained investment over the

last few years and have developed a culture of

resilience and adaptability that serves us well.

Leadership in action

2023 was a year full of opportunity and challenge.

I am very reassured by the Board’s strong

contribution to our decision making, representing

effectively the interests and viewpoints of all

stakeholdersin wideranging topics. This has

supported a thorough evaluation of our strategic

investments, stretching goals for our management

and a continued strong focus onsustainability.

Through our Mission 2025 framework and

biodiversity policy, we are committed to reducing

emissions and water use, by preserving and

re-instating water priority areas, and by sourcing

agricultural ingredients sustainably. While index

performance is not a goal in itself, we continue

to be assured by our ranking as the world’s most

sustainable beverage company in the Dow Jones

Sustainability Index, for another year. Consistent

progress underpins our aim to leave nature in a

state better than the one we found it in.

For more on our Mission 2025 sustainability plan,

see p72 to 74

This year, together with The Coca-Cola

Company and seven other bottling partners,

weeach committed $15 million to a new venture

capital fund, the Greycroft Coca-Cola System

Sustainability Fund. This $137.7 million fund will

focus on innovative solutions to drive carbon

footprint reduction, helping accelerate our

journey towards our NetZeroby40 goal. And

in December, we were proud to announce

the establishment of the CCHBC Foundation

dedicated to supporting communities in the

areas where weoperate, withan initial €10 million

transfer tothe foundation.

We had two new Board members in 2023,

Evguenia Stoichkova and George Pavlos Leventis,

both bringing a wealth of experience from the

beverage sector.

Dividend growth and capital returns

The Board has maintained our progressive

dividend, and for 2023 is proposing €0.93 per

share share, a 19% increase on the dividend per

share versus the prior year, representing a 45%

pay-out ratio, within our targeted range of 40 to

50% of comparable EPS.

The consistent growth of our dividend is

testament to our confidence in the strong

fundamentals of our business, as well as our

commitment to shareholders.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 125

Letter from the Chair of the Board continued

At the same time, in November 2023 we

announced the start of a two-year share

buyback programme, aimed at returning up

to €400 million to shareholders. We remain

committed to a disciplined approach to capital

allocation that continues to drive shareholder

value. TheGroup’s capital allocation framework

follows clear priorities: organic investment in the

business to drive delivery of our medium-term

financial targets; paying a progressive dividend,

targeting a payout of 40%-50% of earnings per

share; strategic M&A; and finally, additionalcapital

return. With these priorities in mind, the Board

believed that the 2023 share price undervalued

the Company’s future growth opportunities,

and theapproval of a share buybackprogramme

provided a compelling opportunity to enhance

value for shareholders while continuing to invest

inthe business.

The importance of good governance

As a Board, our aim is to always ensure the

highest standards of corporate governance,

accountability and risk management. Our

internal policies and procedures, which have

been consistently effective since the Group

was formed, are properly documented and

communicated against the framework applicable

to companies with a premium listing in the UK.

The Board and its committees have conducted

an annual review of the effectiveness of our

risk management system and internal controls,

further details of which are set out in the Audit

and Risk Committee report on pages 153 to 158.

The Board confirms that it has concluded that our

riskmanagement and internal control systems

areeffective.

We are subject to the UK Corporate Governance

Code 2018. It sets out the principles of good

practice in relation to: Board leadership and

Company purpose; division of responsibilities;

composition, success and evaluation; audit, risk

and internal controls; and remuneration. Further

information on how we have applied the principles

and complied with the provisions of the UK

Corporate Governance Code 2018 for the year

ended 31 December 2023 can be found in this

report on pages 123 and 127.

Board meetings normally take place in Zug,

Switzerland, but also in selected markets across

our territories.

Board evaluation

In line with our commitment to adhere to best

corporate governance practices, an externally-

facilitated Board effectiveness evaluation was

conducted in the second half of 2023. Key

outcomes are included on page 150 of the

Nomination Committee report. The evaluation will

be conducted again in 2024 to apply learnings.

Board composition and diversity

We believe that our Board is well-balanced

and diverse, with the right mix of international

skills, experience, background, independence,

and knowledge in order to discharge its duties

and responsibilities effectively. However, the

composition and size of the Board continue

tobekept underreview.

The Financial Conduct Authority’s (FCA) Listing

Rules on targets for gender and ethnic diversity

apply for the first time and our disclosures are in

the Nomination Committee report (see pages 148

to 149). We continue to attach great importance

to all aspects of diversity in our nomination

processes at Board and senior management

levels, while appointing candidates with the

credentials that are necessary for the continued

growth and performance of our operations

within our highly specialised industry. We believe

that a diverse Board fosters both innovation

and resilience and are proud of our track record

of female and ethnic minority representation.

As of the date of this report, female Directors

comprised more than 38% ofourBoard

(compared with 33% in 2022), while ethnic

minorities represented 8%, same as in2022.

Looking ahead

A further record year in 2023 confirms our

resilience, despite the impact of cost inflation and

the conflict in Ukraine. This reflects the continued

investments we have made in the business,

focused on strengthening the most critical

driversof future performance.

We will continue to ensure the management team

is properly incentivised and stretched to deliver

exceptional results. I am proud of the fact that

we’ve been able to reward our teams with healthy

remuneration in recent years, consistent we

believe with the outcomes they’ve delivered. We

ask for dedication, professionalism and a strong

performance from them and they have achieved

agreat deal in difficult times.

We may have seen the worst of the anticipated

inflation, but economic risks remain. AsZoran

explains in his statement in the Strategic Report

(see page 6), we have taken successful actions to

improve price and mix within our portfolio while also

being mindful of maintaining affordability for all our

consumers. In several countries, consumers are

being squeezed by the legacy of high-inflation and

weaker economic conditions. Providing relevant

products with the right appeal and pricing, working

with our customers on appropriate promotions,

remains at the heart of how we make ourselves

relevant for all consumers. It is this focus and drive

that will enable us to deliver on our Growth Story

2025 and ourmid-term targets.

Doing all of this sustainably is critical. Within this,

climate change remains a top priority. We are well

equipped to face these challenges thanks to the

strength of our portfolio, proven capabilities and

committed partnerships.

This work continues, as we embed our values-

based culture to deliver on our clear purpose.

I would like to thank the Board members for

their continued commitment and counsel

this year, as well as extending my thanks to all

CCHBC colleagues, customers, consumers and

partners. Our people and culture are at the heart

of everything we do. Opening up moments that

refresh us allwas at the heart of our success

in 2023 and will underpin our progress for

generations to come.

Anastassis G. David

Chairman of the Board

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 126

Application of the Company’s corporate governance practices

Compliance with the UK Corporate

Governance Code 2018

As a Swiss corporation listed on the LSE with

asecondary listing on the Athens Exchange,

weaim to ensure that our corporate governance

systems remain in line with international

best practices. Our corporate governance

standards and procedures are continuously

reviewed in light of current developments and

rulemaking processes in the UK, Switzerland

and also the EU.Further details are available

on our website. Inrespect of the year ended

31 December 2023, the Company was subject

to the UK Corporate Governance Code 2018

(a copy is available at www.frc.org.uk). Our

Board confirmsthat the Company applied the

principlesand complied withthe provisions of

theUK CorporateGovernance Code throughout

the financial year ended December 2023, except

for the following provisions:

(1) The Chair was not independent on

appointment (provision 9) and has been

aBoard member for more than nine years

(provision 19). Anastassis David was originally

appointed as non-Executive Director (NED)

in2006 at the request of Kar-Tess Holding

and was not, at the time of his appointment as

Chair, in 2016, independent as defined by the

UK Corporate Governance Code. In view of

Anastassis David’s strong identification with

the Company and its shareholder interests,

combined with his deep knowledge and

experience of the Coca-Cola System, the

Board deemed it to be in the best interests

of the Group and its shareholders for him

to be appointed as Chair, with unanimous

support, to continue to promote an effective

and appropriately balanced leadership of

theGroup.

In accordance with the established policy of

appointing all Directors for one year at a time,

the Board continues to keep all positions

under regular review and subject to annual

election by shareholders at the Annual

General Meeting (AGM). The Board continues

to believe that the proven leadership of our

Chair in combination with his deep knowledge

of the Coca-Cola System position him as

unique to steer the Group at the current time.

(2) Provision 38 requires alignment of Executive

Director pension contributions with the wider

workforce. Our difficulties in compliance with

this provision due to existing contractual

obligations were outlined in the Annual

Report published in 2021 and are explained

on page 166 of the Directors’ Remuneration

Report. On the appointment of any new

Executive Director, we intend that their

pension contributions will be aligned with

the pension scheme for the wider workforce.

Pursuant to our obligations under the Listing

Rules, we apply the principles and comply

with the provisions of the UK Corporate

Governance Code or explain any instances

of non-compliance in our Annual Report.

The Company has applied the principles as

far as possible and in accordance with and as

permitted by Swiss law. Further information

on appointment of Directors and compliance

with the UK Corporate Governance Code

canbe found on thepage 123.

Swiss corporate rules

There is no mandatory Corporate Governance

Code under Swiss law applicable to the Company.

The main source of law for Swiss governance

rules is the company law contained in article

620 et seqq. of the Swiss Code of Obligations.

Swiss company law includes provisions regarding

the compensation in listed companies and

further limits the authority of the Remuneration

Committee and the Board to determine

compensation. The effective limitations include

requiring that the AGM approve the maximum total

compensation of each member of the Board and

the ExecutiveLeadership Team (ELT), requiring

that certain compensation elements be authorised

in the Articles of Association and prohibiting

certain forms of compensation, such as severance

payments and financial or monetary incentives

for the acquisition or disposal of firms. We are

in compliance with the requirements of Swiss

company law and the specific provisions therein

regarding the compensation in listed companies.

UK’s City Code on Takeovers

andMergers

The UK’s City Code on Takeovers and Mergers

(the ‘City Code’) does not apply to the Company,

because the Company does not have its

registered office in the United Kingdom, the

Channel Islands or the Isle of Man. The Articles of

Association include specific provisions designed

to prevent any person acquiring shares carrying

30% or more of the voting rights (taken together

with any interest in shares held or acquired by the

acquirer or persons acting in concert with the

acquirer) except if (subject to certain exceptions)

such acquisition would not have been prohibited

by the City Code or if such acquisition is made

through an offer conducted in accordance with

the City Code. For further details, please refer to

the Company’s Articles of Association, which are

available on our website.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 127

Application of the Company’s corporate governance practices continued

Amending the Articles of Association

The Articles of Association may only be amended

by a resolution of the shareholders passed by a

majority of at least two-thirds of the voting rights

represented and an absolute majority of the

nominal value of the shares represented.

Share capital structure

The Company has ordinary shares in issue with a

nominal value of CHF 6.70 each. Rights attaching

to each share are identical and each share carries

one vote. The Company’s Articles of Association

also allow, subject to shareholder approval, for the

conversion of registered shares into bearer shares

and bearer shares into registered shares. Details

of the movement in ordinary share capital during

the year can be found on page 257. There are no

persons holding shares that carry special rights

with regard to the control of the Company.

Powers of Directors to issue and buy

back shares

Subject to the provisions of the relevant laws

and the Articles of Association, the Board acting

collectively has the ultimate responsibility for

running the Company and the supervision

andcontrol of its executive management. The

Directors may take decisions on all matters that

are not expressly reserved to the shareholders

by the Articles of Association. Pursuant to the

provisions of the Articles of Association, the

Directors require shareholder authority to issue

shares. In accordance with the FCA’s Listing Rules,

the Directors require shareholder authority to

repurchase shares. At the AGM on 17 May 2023,

the shareholders authorised the Directors to

repurchase ordinary shares of CHF 6.70 each in

the capital of the Company up to a maximum

aggregate number of 10,000,000 representing less

than 10% of the Company’s issued share capital

as of 4April 2023. The authority will expireat the

conclusion of the 2024 AGM on 21 May 2024 or

at midnight on 30 June 2024, whichever is earlier.

The Company commenced a share buyback

programme on21November 2023 and isexpected

to run for a period of around two years. As at

31December 2023, the Company reported that

1,638,298 ordinary shares had been purchased at

an average price of 2,239.8482 pence per ordinary

share and are held in treasury. The buyback

programme continuesand as at 11 March2024 (the

latest practicable date for inclusion in this report),

since 31 December 2023, the Company purchased

a further 1,154,432 shares at an average price of

2,475.6449 pence per share and these shares

are also held in treasury. Shares held in treasury

as at 11March 2024 total 7,215,615 outof which

3,785,480 are held by CCHBCAG (including the

purchased shares) and 3,430,135 shares are held

by itssubsidiary, CCHBC Services MEPE.

Board composition

On 31 December 2023, our Board comprised

13Directors: the Chair, one Senior Independent

Director, ten NEDs and one ExecutiveDirector.

The NEDs are experienced individuals from a

range of backgrounds, countries and industries, as

shown by their biographies on pages 130 to 132.

Evguenia Stoichkova and George Pavlos Leventis

were appointed to the Board at the 2023 AGM and

at the conclusion of the AGM, Bruno Pietracci and

Ryan Rudolph retired from the Board. Evguenia

Stoichkova was also elected as a member of the

Social Responsibility Committee. This is our first

year of reporting on gender and ethnicity metrics

in accordance with the FCA Listing Rules. Further

details are disclosed on pages 148 to 149 of the

Nomination Committee Report.

External appointments

The Articlesof Associationof theCompany (article

36) set limits on the maximum number of external

appointments that members of our Board and

executive management may hold. In addition, if

a Board member wishes to take up an external

appointment, he or she must obtain prior Board

approval.The Board willassess allrequests ona case-

by-case basis, including whether the appointment

in question could negatively impact the Company

or the performance of the Director’s duties to the

Group. The nature of the appointment and the

expected time commitment are also assessed

to ensure that the effectiveness of the Board

would not be compromised. Details of the external

appointments of our Directors are contained in

their respective biographies on pages 130 to 132.

Our Chair is active in the international community.

With regard to his external appointments, the Board

considers that fewer than four of the positions held

by the Chair are considered to be significant. A

number of our other Directors also have other

external roles. With effect from 1 January 2023

Swiss law has amended the definition of ‘external

appointments’ and requires disclosure of external

appointments in other undertakings (public or

private) with a commercial purpose (opposed to

the requirement under the old law to disclose

external appointments in legal entities registered

ina commercial registeror similar register).

The Board is satisfied that any additionally

disclosed positions are not considered significant.

Having considered the scope of the external

appointments of all Directors, including the Chair,

our Board is satisfied that they do not compromise

the effectiveness of the Board. Each Director has

sufficient time to devote to asnecessary for the

performance of their duties and, according to the

terms of appointment to the Board.This willinclude

attendance annually at approximately ten Board

meetings, AGMs and other meetings. As can be

seen in the table of attendance of Board and Board

Committee meetings on page 140, the Directors

were able to devote the time required to discharge

their duties and the Board has determined that

each member commits sufficient time and

energy to the role, continuing tomake a valuable

contribution to the Board and itscommittees.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 128

Application of the Company’s corporate governance practices continued

Independence

Our Board has concluded that Charlotte J. Boyle,

Olusola (Sola) David-Borha, Anna Diamantopoulou,

William W. (Bill) Douglas III, Reto Francioni and

Alexandra Papalexopoulou are deemed to be

independent, representing half of the Board,

excluding the Chair, in accordance with the

criteria set out in the UK Corporate Governance

Code, with such individuals being independent

in both character and judgement. The other

non-Executive Directors were appointed following

nomination by the two major shareholders

(see details below) and they are therefore not

considered by the Board, to be independent as

defined by the UK Corporate Governance Code.

Anastassis David was appointed as Chair on 27

January 2016. The Board believesthat Anastassis

David embodies the Company’s core values,

heritage and culture and that these attributes,

together with his strongidentification with the

Company and its shareholders’ interests and his

deep knowledgeand experience of the Coca-Cola

System, ensure an effective and appropriately

balanced leadership of the Board and the Company.

Anastassis David was first appointedas amember

of the Board in 2006 before being appointed Chair

in 2016. Prior to his appointment as Chair, major

shareholders were consulted, and an external search

consultancy engaged to find suitable candidates.

The consensus was that Anastassis David was the

appropriate candidate to become Chair and that

he continuesto beeffective inhis leadership of the

Board. In accordance with the established policy

of appointing all Directors for one year at a time,

the Board continues to keep all positions under

regular review and subject to annual election by

shareholders at theAGM. The Board continues to

believe that the proven leadership of our Chair in

combinationwith his deep knowledgeof theCoca-

Cola System position him as unique to steer the

Group at the current time. Accordingly, Anastassis

David has the continuing support of the Board and

major shareholders to remain as Chair.

Shareholder nominees

As described on page 309, since the main listing of

the Company on the Official List of the London Stock

Exchange in 2013, Kar-Tess Holding, TCCC andtheir

respective affiliates have no special rights inrelation

to the appointment or re-election of nominee

Directors. Those Directors who were originally

nominated for appointment by TCCC or Kar-Tess

Holding will be required to stand for re-election

on an annual basis in the same way as the other

Directors.The Nomination Committeeis responsible

for identifying and recommending candidates for

subsequent nomination by the Board for election

as Directors by the shareholders on an annual basis.

As our Board currently comprises 13 Directors,

neither Kar-Tess Holding nor TCCC is in a position

to control (positively or negatively) decisions of

the Board that are subject to simple majority

approval. However, decisions of the Board that

are subject to the special quorum provisions

and supermajority requirements contained in

the Articles of Association, in practice, require the

support of Directors nominated at the request of

at least one of either TCCC or Kar-Tess Holding

to be approved. Inaddition, based on their current

shareholdings, neither Kar-Tess Holding nor

TCCC is in a position to control a decision of the

shareholders (positively or negatively), except to

block a resolution to wind up or dissolve the Company

or to amend the supermajority voting requirements.

The latter requires the approval of 80% of the total

number of shareholders being represented and

voting. Depending on the attendance levels at AGMs,

Kar-Tess Holding or TCCC may also be in a position

to control other matters requiring supermajority

shareholder approval.

Anastassis G. David, Anastasios I. Leventis,

Christo Leventis, and George Pavlos Leventis

were all originally nominated for appointment by

Kar-Tess Holding. Henrique Braun and Evguenia

Stoitchkova were nominated for appointment

by TCCC. The two Directors who retired at the

2023 AGM had been nominated by the two major

shareholders: Bruno Pietracci was nominated by

TCCC and Ryan Rudolph by Kar-Tess Holding.

Conflicts of interest

In accordance with the Company’s Organisational

Regulations, Directors are required to arrange their

personal and business affairs to avoid a conflict of

interest with the Group. Each Director must disclose

to theChair the nature and extent of any conflict

of interest arising generally or in relation to any

matter to be discussed at a Board meeting as soon

as the Director becomes aware of its existence.

In the event that the Chair becomes aware of a

Director’s conflict of interest, the Chair is required

to contact that Director promptly and discuss

the nature and extent of such aconflict ofinterest.

Subject to exceptional circumstances in which the

best interests of the Company dictate otherwise,

the Director affected by aconflict of interest is

not permitted to participate in discussions and

decision-making involving the interest at stake.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 129

Board committees

Committee Chair

Audit and Risk Committee

Nomination Committee

Social Responsibility Committee

Remuneration Committee

Board of Directors

Anastassis G.

David

Non-Executive Chair

Appointed: January 2016. He joined

the Board of CCHBC as a non-Executive

Director in 2006 and was appointed

ViceChair in 2014.

Skills, experience and contribution:

Anastassis brings to his role more than

20years’ experience as an investor

and NEDin the beverage industry.

Anastassis isalso a former Chair of Navios

Corporation.He holds a BA in History from

Tufts University.

For more information on skills and

experience see page 147.

External appointments:

Anastassis is active in the international

community. He serves as Vice Chair of

Aegean Airlines S.A., Vice Chair of the

Cyprus Union of Shipowners, Chair of the

boardof Sea Trade Holdings Inc., a ship-

owning company of dry cargo vessels,

Chairof the board of Nephele Navigation

Inc., and member of Adcom Advisory Ltd.

He holds the following positions within

the Kar-Tess group of companies:board

member of Kar-Tess Holding and Executive

of Boval Ltd.

Also, he is a member of the board of trustees

of College Year in Athens, and Director of

George and Kaity David Foundation.

Nationality: British-Cypriot

Anastassis David has a shared directorship with

Alexandra Papalexopoulou, both being a director

ofAegean Airlines S.A..He alsohas a shared

directorship with Anastasis Leventis, both being

directors in Nephele Navigation Inc. and has a shared

directorship with Anastasios I. Leventis, Christo

Leventis and George Pavlos Levelntis, all being

directors of Adcom Advisory Ltd.

Zoran

Bogdanovic

Chief Executive Officer,

Executive Director

Appointed: June 2018.

Skills, experience and contribution:

Zoranwas previously the Company’s

Regional Director responsible for

operationsin 12 countries and has been

amember of the Executive Leadership

Team since 2013. He joined the Company

in 1996 and has held a number of senior

leadership positions, including as General

Manager of the Company’s operations in

Croatia, Switzerland and Greece. Before

joining theCompany, Zoran was an auditor

with auditing andconsulting firm Arthur

Andersen. Zoran has a track record of

delivering results across our territories

and demonstrating the values that are

thefoundation of our Company culture.

For more information on skills and

experience see page 147.

External appointments: None

Nationality: Croatian

Charlotte J.

Boyle

Independent non-Executive

Director

Appointed: June 2017.

Skills, experience and contribution:

After 14 years with The Zygos Partnership,

an international executive search and

Board advisory firm, including nine years as

a partner, she retired from her position in

July 2017. Prior to that, Charlotte worked at

Goldman Sachs International and at Egon

Zehnder International, an international

executive search and management

assessment firm. Charlotte obtained an

MBA from the London Business School and

an MA from Oxford University and was a

Bahrain British Foundation Scholar.

For more information on skills and

experience see page 147.

External appointments: Charlotte serves

as Chair of UK for UN High Commission

for Refugees (UNHCR), an independent

non-executive director and chair of the

Environment, Sustainability and Community

Committee of Shaftesbury Capital PLC, an

independent director of Thatchers Cider

Company Ltd, a non-executive adviser

to the Group Executive Board of Knight

Frank LLP and as a Trustee and Chair of the

Finance Committee of Alfanar, the venture

philanthropy organisation.

Nationality: British

Henrique

Braun

Non-Executive Director

Appointed: June 2021.

Skills, experience and contribution:

Henrique has vast experience in corporate

functions as well as regional and business

unit operations in TCCC. He joined TCCC

in 1996 in Atlanta and progressed with

increased responsibilities in North America,

Europe and Latin America. His career

responsibilities have included supply chain,

new business development, marketing,

innovation, general management and

bottling operations. From 2020 to 2022,

Henrique served as President of the Latin

America operating unit, from 2016 to 2020,

he served as the President of the Brazil

business unit and from 2013 to 2016, he was

the President for Greater China and Korea.

His other roles in TCCC inthe past include

Vice President of Innovation and Operations

in Brazil and Director for Still Beverages

(non-carbonated beverages) in Europe.

He first joined TCCC as a trainee in Global

Engineering in the US. Henrique holds a

bachelor’s degree in agricultural engineering

from the University Federal of Rio de Janeiro,

a master’s in industrial engineering from

Michigan State University and an MBA from

Georgia State University.

For more information on skills and

experience see page 147.

External appointments: Henrique

currently serves as Executive Vice President,

International Developmentfor TCCC,

overseeing the company’s operating units

for Latin America, Japan and South Korea,

ASEAN and South Pacific, Greater China

and Mongolia, Africa, India and Southwest

Asiaand Eurasia and Middle East.

Nationality: American and Brazilian

N R

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Board of Directors continued

Olusola (Sola)

David-Borha

Independent non-Executive

Director

Appointed: June 2015.

Skills, experience and contribution:

Sola has more than 30 years’ experience

infinancial services and held several senior

roles within the Standard Bank Group. She

was the CEO of the Africa Regions (excluding

South Africa) for Standard Bank between

2017 and 2021. Prior to that role, she served

as CEO of Stanbic IBTC Holdings Plc, a

subsidiary of Standard Bank Group listed

on the Nigerian Exchange. Her prior Board

appointments include serving as Chairman

Stanbic IBTC Bank and a Non-Executive

Director on Stanbic Uganda Holdings and

Stanbic Bank Uganda.

Sola holds a first degree inEconomics and

obtained an MBA degree from Manchester

Business School. Her executive education

experience includes the Advanced

Management Programme of the Harvard

Business School and the Global CEO

Programme of CEIBS, Wharton and IESE.

For more information on skills and

experience see page 147.

External appointments:

Sola serves as NED on the Board of Stanbic

IBTC Holdings Plc, a listed entity that is a

member of the Standard Bank Group.

Nationality: Nigerian

Anna

Diamantopoulou

Independent non-Executive

Director

Appointed: June 2020.

Skills, experience and contribution: Anna,

as a former European Commissioner, brings

to the Group a unique expertise on matters

of employment and equal opportunity

together with deep knowledge of the

European CSR agenda. Anna was an elected

Member of the Greek Parliament for over

a decade, during which time she served as

Deputy Minister for Industries, Minister of

Education, Lifelong Learning and Religious

Affairs and Ministerof Development,

Competitiveness and Shipping of the

Hellenic Republic. From 1999 to 2004,

Anna served as a member of the European

Commission in charge of Employment,

Social Affairs and Equal Opportunities.

For more information on skills and

experience see page 147.

External appointments: Founder and

President of DIKTIO-Network for Reform in

Greeceand Europe, a leading Athens-based

independent, non-partisan policy institute.

A Council Member of the European Council

on Foreign Relations and an Advisory Board

Member of Delphi Economic Forum. She is

also the Chair of the European Commission’s

High-Level Group on the futureof social

protection and the welfare state in the EU.

Finally, Anna is a member of the Global

Advisory Board of KEKST CNC.

Nationality: Greek

William W. (Bill)

Douglas III

Independent non-Executive

Director

Appointed: June 2016.

Skills, experience and contribution:

Bill is a former Vice President of Coca-Cola

Enterprises, a position in which he served

from July 2004 until his retirement in June

2016. From 2000 until 2004, Bill served as

Chief Financial Officer (CFO) of CCHBC.

Bill has held various positions within the

Coca-Cola System since 1985, including

positionswith responsibility for the IT

function, including cyber issues. Before

joining TCCC, Bill was associated with Ernst

& Whinney, an international accounting firm.

He received his undergraduate degree from

the J.M. Tull School of Accounting at the

University of Georgia.

For more information on skills and

experience see page 147.

External appointments: Bill is the Lead

Director and Chair of the Audit Committee

of SiteOne Landscape Supply, Inc. He is

also a non executive Chair of the Board of

Directors of The North Highland company.

He also serves on the Board and is a past

Chair of the University ofGeorgia Trustees.

Nationality: American

Reto

Francioni

Senior Independent

non-Executive Director

Appointed: June 2016.

Skills, experience and contribution:

Reto has been Professor of Applied Capital

Markets Theory at the University of Basel

since 2006 and is the author of several

highly respected books on capital market

issues. From 2005 until 2015, Reto was CEO

of Deutsche Börse AG and from 2002 until

2005, he served as Chair of the Supervisory

Board and President of the SWX Group,

which owns the Swiss Stock Exchange and

has holdings in other exchanges. Between

2000 and 2002, Reto was Co-CEO and

Spokesman for the Board of Directors of

Consors AG. Between 1993 and 2000, he

held various management positions at

Deutsche Börse AG, including that of Deputy

CEO. He earned his Doctorate of Law at the

University of Zurich.

For more information on skills and

experience see page 147.

External appointments: Reto serves as

Chair of the Supervisory Board of UBS

Europe SE and also as the Chair of the

Supervisory Board of Swiss International

Airlines. Reto is also a Vice Chair at the Board

of Directors of Medtech Innovation Partners

AG, Basel.

Nationality: Swiss

Anastasios I.

Leventis

Non-Executive Director

Appointed: June 2014.

Skills, experience and contribution:

Anastasios began his career as a banking

analyst at Credit Suisse and then American

Express Bank. He has previously served

on the Boards of the Cyprus Development

Bank and Papoutsanis SA. He holds a BA in

Classics from the University of Exeter and

an MBA from New York University’s Leonard

Stern School of Business.

For more information on skills and

experience see page 147.

External appointments: Anastasios is a

Board member of A.G. Leventis (Nigeria)

Ltd, Vice Chair of the board of Nephele

Navigation Inc, a board member of Maxenta

Invest Corp., of Middle East Finance Sarl

and of Adcom Advisory Ltd. He is a board

member of Kar-Tess Holding.

Furthermore, Anastasios is a member of the

European Council of the Nature Conservancy,

a Board Member of WWF Hellas (Greek

branch of WWF), a member of the board of

Overseers of the Gennadius Library in Athens,

a member of the University of Exeter Global

Advancement Board, co founder of the

Cyclades Preservation Fund, Member of the

Board of Trustees ofA.G. Leventis Foundation,

and Director of Leventis Foundation Nigeria.

Nationality: British

Anastasios Leventis has a shared directorship with

Anastassis David, Christo Leventis and George Pavlos

Leventis, all being directors of Adcom Advisory Ltd.

He also has shared directorship with Anastassis David,

both being directors of Nephele Navigation Inc, and a

shared directorship with Christo Leventis, both being

directors in Middle East Finance Sarl.

A N S R A N R S

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 131

Board of Directors continued

Christo

Leventis

Non-Executive Director

Appointed: June 2014.

Skills, experience and contribution:

Christo worked as an Investment 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 European beverage companies.

From 2003 until March 2014, Christo

was a member of the board of directors

of Frigoglass S.A.I.C., a leading global

manufacturer of commercial refrigeration

products for the beverage industry. Christo

holds a BA in Classics from University

College London and an MBA from the

Kellogg School of Management in Chicago.

For more information on skills and

experience see page 147.

External appointments:

Christo is a board member of Alpheus

Capital, a single family private equity

investment office, a board member of

Adcom Advisory Ltd, a board member of

Middle East Finance Sarl and holds the

followingpositions within the Kar-Tess group

of companies: a board member of Kar-Tess

Holding and a board member of Torval

Investment Corp.

Furthermore, he is a Director of the A.G.

Leventis Foundation.

Nationality: British

Christo Leventis has a shared directorship with

Anastassis David, Anastasios Leventis and George

Pavlos Leventis, all being directors of Adcom Advisory

Ltd. He also has a shared directorship with Anastasios

Leventis, both being directors in Middle East Finance

Sarl and with George Pavlos Leventis, both being

directors in Tor val InvestmentCorp.

Alexandra

Papalexopoulou

Independent non-Executive

Director

Appointed: June 2015.

Skills, experience and contribution:

Alexandra worked previously for the OECD and

the consultancy firm Booz, Allen & Hamilton,

in Paris. From 2003 until February 2015, she

served as a member of the Board of Directors

of Frigoglass S.A.I.C. From 2010 to 2015, she

served as a member of the board of directors

of National Bank of Greece and from 2007

to 2009, she served as a member of the

board of directors of Emporiki Bank. She is

an experienced executive director having

been appointed in 1995 to the board of Titan

Cement Company S.A., where she is employed

since 1992. Alexandra holds a BA in Economics

and Mathematics from Swarthmore College

in the US and an MBA from INSEAD in France.

For more information on skills and

experience see page 147.

External appointments: Alexandra is an

Executive Member of the Board of Directors

of Titan Cement International and Chair of

the Board Strategy Committee. Alexandra

is treasurer and a member of the Board

of Directors of the Paul and Alexandra

Canellopoulos Foundation, a member of the

Board of Trustees of the INSEAD business

school and an independent non-executive

Director of Aegean Airlines S.A..

Nationality: Greek

Alexandra Papalexopoulou has a shared directorship

with Anastassis David, both being a director of Aegean

Airlines S.A.

Evguenia

Stoichkova

Non-Executive Director

Appointed: May 2023.

Skills, experience and contribution:

Evguenia is currently the President of Global

Ventures for TCCC, a unit that focuses on

globally scaling acquisitions and brands,

including COSTA Coffee and investment

in Monster Beverage Corp. Prior to her

current role, Evguenia served as President

of the company’s Eurasia & Middle East

operating unit. From 2017 to 2020, Evguenia

was president of the Turkey, Caucasus and

Central Asia business unit. From 2013 to

2017, Evguenia served as Franchise General

Manager for Italy and Albania. From 2010 to

2013, she was Franchise Operations director

for Romania, Bulgaria, Moldova and Albania.

Evguenia joined Coca-Cola Bulgaria in2004

as Franchise Country Manager. She became

Marketing Manager for sparkling soft drinks

in the Adriatic and Balkans business unit in

2007. She was named as Area Marketing

Manager in Romania, Bulgaria, Moldova and

Macedonia in 2008 before becoming Brand

Director for still beverages for South Eastern

Europe in 2009. Evguenia started her career

at Danone Group in 1994 and led Danone

marketing in Bulgaria from 2000 to 2004.

For more information on skills and

experience see page 147.

External appointments:

PresidentofGlobalVentures at TCCC

Nationality: Bulgarian

George Pavlos

Leventis

Non-Executive Director

Appointed: May 2023.

Skills, experience and contribution:

George was a non-executive member of the

board of directors of Frigoglass S.A.I.C. from

2014 until May 2023 and held the position

of Vice Chair. George previously worked as

an analyst in fund management and holds

an Investment Management Certificate

from the CFA Society. He graduated with a

bachelor’s degree in modern history from

Oxford University and holds a postgraduate

Law degree from City University in the UK.

For more information on skills and

experience see page 147.

External appointments: George is a board

member of Adcom Advisory Ltd, a board

member of Chalet Alpette Sarl and a board

member of 8 Kensington Park Road Ltd. He

is also a Board member of Torval Investment

Corp., a company within the Kar-Tess group

of companies.

Furthermore, he is a director in Terra Cypria

Foundation, a charitable non-governmental

organisation, that promotes environmental

awareness and sustainability.

Nationality: British

George Pavlos Leventis has a shared directorship with

Anastassis David, Christo Leventis and Anastasios

Leventis, all being directors of Adcom Advisory Ltd. He

also has a shared directorship with Christo Leventis,

both being directors in Tor val InvestmentCorp.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 132

Corporate Governance Report

Board leadership and Company purpose

The Board has ultimate responsibility for our

long-term success and for delivering sustainable

shareholder value, as well as contributing to wider

society. It is responsible for setting our purpose,

values and strategy and ensuring alignment with

culture. This includes ensuring that workforce

policies and practices are consistent with our

values and long-term sustainable vision.

Key activities of the Board in 2023

The key activities of the Board during the year

are set out opposite. The Board recognises the

value of maintaining close relationships with its

stakeholders, understanding their views and the

importance of these relationships in delivering our

strategy. The Group’s key stakeholders and their

differing perspectives are taken into account as

part of the Board’s discussions. You can read more

in our statement of section 172 of the Companies

Act 2006 on page 19.

Board meeting discussions are structured using a

carefully tailored agenda that is agreed in advance

by the Chair in conjunction with the CEO and the

Company Secretary. A typical Board meeting will

comprise the following elements:

• committee reports from the Chairs of our

Board Committees on the proceedings of

thosemeetings, including the key discussion

points and particular matters to bring to the

Board’s attention;

• performance reports including CEO Overview,

COO Overview, CFO Review and operational

performance reports;

• d e e p - d i v e reports into areas of strategic

importance to evaluate progress, provide

insight and, where necessary, decide on

appropriate action; and

• legal and governance updates including

regulatory updates, governance and

compliance updates, proxy agencies

scoringand annual Board, Committees’

andDirectors’ assessment.

Performance

Regions and functions

Deep-dive reviews of regions and key functions

Business and financial performance

Regular reviews of business performance by

reporting segments and categories, with focus on

growth accelerators and new product launches;

regular reviews of financial performance, financial

insights, FX matters and analysts’ updates.

Performance measurement

Focusing on the performance of the Revenue

Growth Management, Route-to-Market and big data

and advanced analytics programmes in order to build

the necessary insight capabilities

Culture and values

Employee engagement surveys

Discussing the employee engagement surveys and

people plans

Organisational design

Reflecting on the implementation of the Group’s

organisational design

Engagement initiatives

Workingwith the designated non-Executive Director

on issues that are identified through the employee

engagement process

Performance

Regions and functions

Deep-dive reviews of regions and key functions

Deep-dive

reviews

Deep-dive

Business and financial performance

Regular reviews of business performance by

reporting segments and categories, with focus on

growth accelerators and new product launches;

regular reviews of financial performance, financial

insights, FX matters and analysts’ updates

Performance measurement

Focusing on the performance of the Revenue

Growth Management, Route-to-Market and big data

and advanced analytics programmes in order to build

the necessary insight capabilities

Retail and e-commerce

Reviewing the execution initiatives in retail,

e-commerce and growth results

e-commerce

and

growth

and

growth

Culture and values

Employee engagement surveys

Discussing the employee engagement surveys and

people plans

Organisational design

Reflecting on the implementation of the Group’s

organisational design

Engagement initiatives

Workingwith the designated non-Executive Director

on workforce issues that are identified through the

employee engagementprocess; engaging with other

stakeholders in assessing performance against strategy

Risk management and internal control

Principal and emerging risks

Continued review of principal and emerging risks and

mitigation programmes, Overshight of the internal

control framework, anddefinition of the Group’s risk

appetite.

Finance and IT

Reviewing the liquidity, financing status and

commodity exposure of the Group and reviewing

information technology plans, including cyber security

Digital strategy

Review of the digital strategy and its key priorities

around consumer and customer centricity,

employee experience and operational productivity

Succession planning and diversity

Succession planning

Reviewing succession planning for Board and senior

management

Talent development

Reviewing the Company’s talent development plans

Academies

Monitoring the progress of our academies, including

Coffee, Digital, Supply Cainand Sales Academies

Coffee,

Digital,

Coffee,

Digital,

Supply

Digital,

Supply

Cain

Supply

Operational

Cost optimisation and investment

Ongoing review of the Group’s cost optimisation and

investment programmes

New acquisitions

Approved the acquisition of Finlandia Vodka;

continued oversight of Egypt business integration

Capital expenditure

Review of material capital expenditure projects

Geopolitical events

Continued monitoring geopolictical events that may

have operational impact

Net zero initiatives

Review of projects, including the in-house

production of PET from recycled PET flakes

production

PET

from

recycled

PET

from

Stakeholders

Our investors

The Coca-Cola Company

The

Our consumers

Our customers

Our people

Our communities

Governments

NGOs

Our suppliers

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 133

Corporate Governance Report continued

Engaging with our Stakeholders

The Board regularly reviews stakeholder

engagement activities undertaken, both by it and

the Group as whole,and issatisfied that the activities

outlined in the next two pages and on pages 12

to 18 remain effective for the mutual benefit of

the Company and its stakeholders. Going forward,

a focus on our people, customers, consumers,

communities and partners will remain high

ontheBoard’s agenda.

Shareholders

In 2023, shareholders were permitted to attend

the 2023 AGM with the statutory auditors and

the independent proxy adviser in person, for

the first time since 2019, due to Covid-19 safety

restrictions. At the 2023 AGM, more than 20% of

votes were cast against three resolutions, being

the advisory votes on the UK remuneration report

(resolution 7), the Swiss remuneration report

(resolution 9), and the re-election of Charlotte

J. Boyle, Chair of the Remuneration Committee

(Resolution 4.1.3). In accordance with Provision

4 of the UK Corporate Governance Code, on

15 December 2023 we published an update on

the key actions that were taken by the Board

of Directors and Remuneration Committee in

response to this. In addition to the consultation

with its largest shareholders prior to the 2023

AGM the Chair of the Remuneration Committee

has further engaged with shareholders to

understand their feedback regarding the votes.

From this engagement, it is understood that

the significant factor regarding the votes was

connected to the increased 2023-2025 PSP

opportunity for the CEO, even though this was

within the policy limits approved by shareholders.

More information on the actions taken

in responseto this vote isincluded in the

Remuneration Report on page160.

Pursuant to Swiss law and the Articles of

Association, shareholders annually elect an

independent proxy and have the possibility

to authorise and instruct the independent

proxy electronically for our general meetings.

The Chair, Senior Independent Director and

Chair of the Audit and Risk Committee will be

available at the 2024 AGM to answer questions

from shareholders. The Board encourages

shareholders to attend as it provides an

opportunity to engage with the Board.

The Chairman meets and maintains a dialogue

with the Company’s major shareholders to

understand their views on the Company’s

strategyand performance.

More broadly, our investor relations function

reports to the CFO. Through the investor relations

team, the Company and Board maintain a dialogue

with institutional investors and financial analysts

on our strategy, financial and sustainability

performance. We engaged with the investment

community and our shareholders throughout

theyear, as outlined in the box opposite.

Feedbackfrom shareholders was regularly

considered by the Board and, where necessary,

appropriate action to further engage was taken.

Other Stakeholders

We remain constantly vigilant of the ongoing

conflict in Ukraine. First and foremost, we are

focused on protecting our employees and

ensuring, in so far as possible, their health and

safety. We believe that the decisions we have

taken to date achieve the best balance for our

team on the ground and our wider stakeholders.

We continue to monitor matters closely and will

take further actions if needed.

Stakeholder interests and matters were also

carefully considered by the Board in the context

of the acquisition of Brown-Forman Finland

Oy, owner of Finlandia, a leading vodka brand in

Central and Eastern Europe, on 1November 2023

and its subsequent integration. The acquisition

represents a unique opportunity for the Group

as it enhances our journey towards becoming the

leading 24/7 beverage partner and creating value

for our stakeholders. We have been distributing

Finlandia and other premium spirits brands for

more than 17 years and the acquisition, which we

assessed as an attractive investment is expected

to further enrich and strengthen our portfolio

across more of our markets. Ownership of the

Finlandia vodka business is also expected to

enhance our premium spirits credentials; driving

mixability opportunities with premium and super-

premium NARTD products, helping capture

more drinking occasions for our consumers, and

strengthening partnerships with customers in

strategically important channels such as hotels,

restaurants and cafés and creating more value

for our partners and customers by capturing

newopportunities with our well-rounded

beverage portfolio.

Investor relations highlights

February

• US management roadshow – Miami,

Boston, New York

• Europe and UK management roadshow

(London, Frankfurt)

May

• AGM in Steinhausen

• Investor Day in Rome

June

• dbAccess, Deutsche Bank, Global

Consumer Conference 2023 – Paris

• BNP Paribas Exane CEO Conference – Paris

• 3rd Annual Evercore ISI Consumer and

Retail Conference – Virtual

• US investor relations roadshow (Chicago,

Denver, California, San Francisco)

September

• Toronto investor relations roadshow

• Barclays Global Consumer Staples

Conference 2023 – Boston

• Baader Investment Conference – Munich

November

• UK management roadshow (London)

• US management roadshow (New York)

• Jefferies Miami Consumer Conference

• Bank of America Consumer and Retail

conference – Miami

• Morgan Stanley and Athens Exchange

Greek Investment Conference – London

• Milan – Madrid investor relations Roadshow

• Citi’s Global Consumer Conference – London

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 134

Our people

The Board recognises that our people are core to

our strategy – our success depends on our ability

to attract, retain and develop the best talent. The

safety of our workforce continued to be a focus

throughout 2023, ensuring appropriate measures

were in place so that people could continue in

their roles and that we were supporting a healthy

working environment, particularly for colleagues

and their families based in or around Russia and

Ukraine. The Board closely monitors and reviews

the results of the employee engagement surveys.

It also reviews talent development initiatives

designed to support long-term success. For

further details on investing in our people please

see below and the Growth Pillar 4 on pages 45 to

51. For further details on rewarding our people

please see the Remuneration Committee Report

on pages 159 to 184.

Charlotte Boyle, our designated non-Executive

Director has the mandate for engagement with

our people. Employee engagement survey results

are shared with and reviewed by the Nomination

Committee and the Board. The CEO held

engagement sessions with employees during

theyear, including Q&As.

Championing workforce

rights at Boardlevel

Charlotte Boyle, our designated NED for

workforce engagement, attended meetings

with our European Works Council during

the year. She heard from elected employee

representatives from our businesses in

EU countries, hearing first-hand their

experiences during the last couple of years.

The insights gained contributed to the

Board’s decisions in relation to ensuring

the appropriate support and resources for

our people – not only in terms of safety,

buttoaidthem in their roles.

Charlotte frequently interacted with our

Head of Labor Relations Director, who is

also responsible for monitoring diversity,

equity and inclusion, to better understand

the steps we are taking to be more diverse

and inclusive (see page 49). To embed these

attributes within the Company’s culture,

multiple initiatives have been launched to

increase awareness and understanding and

improve policies and practices to create a

more equitable and inclusive workplace for all.

Again, Charlotte reported back to the Board

on her observations and matters raised by

employees, ensuring Board deliberations

anddecision making were fully informed.

Stakeholder group How the Board engages with Stakeholders Read more

Our people

To understand what our people needed to work in

continually changing circumstances, the Company

conducted in total four all-employee surveys in 2023. There

is a designated non-Executive Director for engagement

with our people but the practice, which began during the

beginning of theCOVID-19 pandemic, of presenting survey

results to the fullBoard continued. The CEO also held

engagement sessions with employees during the year,

including several calls with Q&A sessions.

p45.

Our customers

Regular business updates on performance and market

execution, regular visits, dedicated account teams, joint

business planning, joint value-creation initiatives,customer

care centres, customer satisfaction surveys.

p33.

Our consumers

Regular business updates on performance and market

execution, and consumer trends and insights, consumer

hotlines, local websites, plant tours, research, surveys,

insights, focus groups.

p24.

Governments

Regulatory updates on issues and developments

relevant to the Company’s business, Trade Associations,

recycling and recovery initiatives, EU Code of Conduct

on Responsible Food Business and Marketing Practices,

Physical Activity and Health, foreign investment advisory

councils,chambers ofcommerce.

p52.

Our communities

Plant visits, community meetings, partnerships on

common issues, sponsorship activities, lectures at

universities, training opportunities and support to young

people currently not in education, training or employment.

p52.

NGOs

Dialogue, policy work, partnerships on common issues,

membership of business and industry associations.

p52.

The Coca-Cola

Company

Regular engagement with the Chair on performance

against strategy and governance matters, day-to-day

interaction as business partners, joint projects, joint

business planning, functional groups on strategic issues,

‘top-to-top’ senior management meetings.

p18.

Our investors

Annual General Meeting, investor roadshows and

resultsbriefings, webcasts, engagement of Chair with

major shareholders, engagement of Committee Chairs on

significant matters pertaining to their areas of responsibility.

Regular business updates on performance and market

execution, ongoing dialogue with analystsand investors,

p18.

Our suppliers

Engagement with our suppliers, consultants and

counterparts in related industries.

p40.

Corporate Governance Report continued

Engaging with our Stakeholders continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 135

Corporate Governance Report continued

Overseeing strategic delivery

Our growth pillars What did the Board consider? What did the Board discuss and approve? What were the material stakeholder considerations?

Leverage our

unique 24/7

portfolio

Leverage

unique

portfolio

• Reviewing the accelerators for the future including

Sparkling, Energy and Coffee

• Assessing business development opportunities

• Roll out of Jack and Coke alcoholic ready to drink

inprioritized markets

• Roll out of Vitamin Water

• Discussed Coffee performanceand acceleration and

engaged with brand owner stakeholders, including

Carolina Vergnano of Caffè Vergnano

• Deep dive session with TCCC CFO, John Murphy

onstrategy, priorities, market insights and

consumertrends

• 2024 business plan review

• Acquisition of Finlandia vodka business from long-

term partner Brown Forman and business prospects

• Consumer needs and trends, including quality

and freshness of products, health and nutrition,

affordability, innovation, reducing waste

• Creating value for our shareholders and our

customers and how a strategic approach to

asegmented portfolio can play a critical role

toaccelerate revenue

• Partnerships create long term value for

allstakeholders

• Marketplace economic conditions

Win in the

marketplace

• Market execution excellence and initiatives

• Digital commerce progress and initiatives, including

customer portals and digital marketing

• How to maximise use of digital tools and

artificialintelligence

• Regular updates from the ELT on business

performance, operational priorities and market

execution initiatives

• Development of eMarketplace solutions to address

a growing need for smaller customers looking for

effective purchasing aggregation.

• Partnership with Microsoft to build in house

generative Artificial Intelligence productivity

andother tools

• Consumer needs and trends

• Customer engagement and satisfaction

• Marketplace economic conditions

• Shareholder value creation

Fuel growth

through

competitiveness

and investment

• Financial performance, insights and trends

• CapEx required and timelines for investments

forcapacity and efficiency, capability building

andsustainability

• Business development and other

investmentopportunities

• Enterprise wide initiative to drive processes’

andprojects’ efficiency and simplification

• Regular updates from the ELT on financial

performance, financial insights, incl. FX matters

andanalysts’ updates; approval of half-year and

annual results announcements

• Quarterly reports by the Audit and Risk Committee

of the Board

• Capital expenditure to fuel business growth

• Update on Investors’ day held in Rome in May

bytheGroup CFO

• Share Buy Back programme to run for 2 years to

return to shareholders up to €400 million

• Approval of EMTN programme update to allow the

Company to issue new notes in the market in the

next 12 months

• Update on enterprise wide initiative to drive

processes’ and projects’ efficiency and simplification

• 2024 Business plan review of financials

• Consumers’ and customers’ evolving needs

andtrends plus sustainability considerations

• Shareholder value creation

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 136

Corporate Governance Report continued

Overseeing strategic delivery continued

Our growth pillars What did the Board consider? What did the Board discuss and approve? What were the material stakeholder considerations?

Cultivate the

potential of

ourpeople

• How to deliver our new purpose and

culturemanifesto

• Attracting, maintaining and developing talent

• Employee engagement drivers

• Progress against our gender diversity KPIs

• Regular reviews of people, talent, succession plans

and culture matters

• Quarterly reports by the Nomination and

Remuneration Committees of the Board

• Consideration of employee engagement survey

outputs and actions proposed

• Update from ELT members on the Company’s

culture manifesto

• Review of initiatives to enhance the Company’s

employer branding and attractiveness

• Our people and how to engage, retain and develop

them and open up opportunities for them in line with

our new purpose

Earn our

licence

to operate

• How to do the right thing and deliver against

ourambitious ESG targets

• Corporate governance as a critical enabler

forourlicense to operate

• Regulatory developments

• Regular updates and reviews of

sustainabilityprojects

• Quarterly reports by the Social Responsibility

Committee of the Board

• Review of Health & Safety update and approval

ofimprovement plan

• Review of ESG benchmarks

• Launched the Coca-Cola HBC Foundation, with

an initial commitment of €10 million, dedicated

to supporting the communities in which the

Companyoperates

• Participation to the Greycroft Coca-Cola System

Sustainability Fund by committing $15 million for

sustainability related investments

• Corporate governance updates and overview,

including AGM results and consultation process,

internal controls and risk management processes,

external auditors review, UK Corporate Governance

Code requirements and compliance; approval

of 2022 integrated annual report; Board self-

assessment overview and prioritizing focus areas

for2024.

• Regulatory updates, including on UK corporate

governance rules & upcoming changes and

sweeteners regulations

• The Company’s insurance renewal proposal review

and approval

• Delivering against our ESG targets, within Mission

2025, NetZeroby40 roadmap and biodiversity

goals to meet broad stakeholder expectations

on sustainability, for employees, consumers,

customers, shareholders, regulators and NGOs

• Support our communities in need and at time of

crisis, prioritising natural disaster relief, packaging

and waste management, corporate citizenship and

empowering youth and women

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 137

The Board is responsible for monitoring

and assessing our culture. The Chair

ensures that the Board is operating

appropriately and sets the Board’s

culture, which in turn sets the standard

for the culture of the Company.

The CEO, supported by membersof the ELT, is

responsible for ensuring culture is embedded

throughout the business and its operations and

in all our dealings with our stakeholders. The

Board measures the culture of the Group using

internal and external metrics, which also enable

it to identify further actions to ensure the culture

remains appropriate. The Board also assesses

the alignment of the Group’s policy, practices

and behaviours throughout the business with

the company’s purpose, values and strategy,

and, if not satisfied, seeks assurance that the

management is taking corrective action. The

Board also monitors the Group’s performance

against its peer group within the same sector.

What defines our culture is who we are, our

purpose, our vision, our values, how we need to

evolve and the behaviours we commit to each

other. In 2023, we further defined this with our

Culture Story’ which was rolled-out during our

Leadership Conference in Cairo. The Board

monitored progress through the regular updates

from the management team, and culture and

engagement surveys ran during the year –

seepage 47.

Sustainability

• Accelerated our #YouthEmpowered

employability programme – see page 65.

• Continued to prioritise a circular

approachto packaging, achieving almost

50% rPET in EU and Swiss markets, a

year ahead of the 2025 deadline set as

part of the Union of European Soft Drinks

Associations circular packaging vision for

EU markets – see page 58.

• Joined TCCC and seven other leading

bottling partners to announce a

sustainability-focused venture capital fund.

The $137.7 million fund is initially focusing

on packaging, heating and cooling, facility

decarbonisation, distribution and supply

chain – see page 53.

• Accelerated progress towards

NetZeroby40 by investing $12 million

to open a high-speed returnable glass

bottling line in Austria – see page 60.

• I n v e s t e d in Manna Aero, an Irish start-up

leading the way in food and beverage drone

deliveries, which can be up to eight times

more efficient – see page 57.

• Invested in water, hygiene and sanitation

projects in seven Nigerian states to help

strengthen community water resilience –

see page 62.

Doing the right thing

• continued to prioritise the health, safety

and wellbeing of our people and support our

local communities in need, including local

communities and our people in Ukraine,

which continues to be impacted by the

conflict – see pages 47 to 48.

• established the Coca-Cola HBC Foundation,

with an initial donation of EUR 10 million,

dedicated to supporting the communities

in which we operate, primarily in areas of

natural disaster relief, packaging and waste

management, corporate citizenship and

empowering youth and women – see page 66.

• continued to invest in programmes that

make our people and partners’ work – and

lives – easier. For example, Project Oxygen is

reducing bureaucracy and complexity so they

can focus on value-adding activities, showing

how our company value of ‘making it simple’

really matters – see page 46.

Investing in our people

• ran bi-annual culture and engagement

surveys one pulse survey and one

collaboration for impact survey during

theyear – see page 47.

• implemented new international Leadership

Traineeprogrammeof the Group –see page 49.

• emphasised the well-being of our people

with enhancing initiatives as the Employee

Assistance Programme – see page 48.

• focused on initiatives to strengthen talent

attraction and promote our preferred

employer status – see page 51.

• continued to strengthen the diversity of our

workforce through workplace inclusion activities

and are proud to report that in 2023 we received

15 diversity-related awards; ongender diversity

in particular, 41.8% of management positions

now held by women – see page 49.

Opening up opportunities for our

consumers, customers and partners

• strengthened our portfolio and our 24/7

beverage partner strategy by acquiring

Finlandia vodka business from Brown-

Forman, an investment that opens up new

opportunities for our consumers, partners

and customers to create value and offer a

broader range in consumption occasions –

see page 27.

• continued measuring and continuously

improving customer experience using

the Net Promoter Score® metric applied

through CustomerGauge ‘voice of customer’

software, which enables instant feedback

from customers – see page 36.

• continued investing in technology that

enables a personalised experience for

our consumers and customers, including

connected coolers, digital marketing,

digitalplatforms – see page 43.

Corporate Governance Report continued

Culture in action

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 138

Chair

• Leads the Board, sets the agenda

and promotes a culture of

openness and debate.

• Ensures the highest standards

ofcorporate governance.

• Is the main point of

contactbetween the

Boardandmanagement.

• Ensures effective communication

with stakeholders, together with

the CEO.

CEO

• Leads the business, implements

strategy and chairs the ELT.

• Is responsible for overall

effectiveness in leading the

Company and setting the culture.

• Communicates with the Board,

shareholders, employees,

government authorities, other

stakeholders and the public.

Senior Independent Director

• Acts as a sounding Board

forthe Chair and appraises

hisperformance.

• Leads the independent NEDs

on matters that benefit from an

independent review.

• Is available to shareholders if they

have concerns that have not been

resolved through the normal

channels of communication.

Non-Executive Directors

• Contribute to developing

Groupstrategy.

• Scrutinise and constructively

challenge the performance of

management in the execution

ofthe Group’s strategy.

• Oversee succession planning,

including the appointment of

Executive Directors.

Company Secretary

• Ensures that correct Board

procedures are followed

and ensures the Board has

full andtimely access to all

relevantinformation.

• Facilitates induction and training

programmes, and assists

with theBoard’s professional

development requirements.

• Advises the Board on

governancematters.

Board of Directors

Board committees

Nomination Committee

• Identifies and nominates new Board

members, including recommending

Directors to be members of each

Boardcommittee.

• Ensures adequate Board training; supports

the Board and each committee in

conducting a self-assessment.

• Oversees the talent

developmentframework.

• O v e r s e e s effective succession planning for

the CEO, in consultation with the Chair, and

for the ELT, in consultation with the CEO.

Social Responsibility Committee

• Supports the Board in its responsibilities

to safeguard the Group’s reputation for

responsible and sustainable operations.

• Oversees engagement with stakeholders

to assess their expectations and

the possible consequences of these

expectations for the Group.

• Establishes principles governing ESG and

oversees development of performance

management to achieve ESG goals.

Audit and Risk Committee

• O v e r s e e s accounting policies, financial

reporting and disclosure controls;

approach to internal controls and risk

management; information / cyber

securitymatters; and the quality,

adequacyand scope of internal and

external audit functions.

• Oversees compliance with legal, regulatory

and financial reporting requirements and

the internal audit function.

• External auditor reports directly to

thecommittee.

Remuneration Committee

• Establishes the remuneration strategy;

determines and agrees with the Board the

remuneration of Group Executives and

approves remuneration for the Chair and

the CEO.

• Makes recommendations to the Board

regarding remuneration matters to be

approved at the AGM.

• Implements or modifies any employee

benefit plan resulting in an increased annual

cost of €5 million or more.

Biographies of the Chairs of the Board committees and the other members of the

Board, the Audit and Risk Committee, the Nomination Committee, the Remuneration

Committee and the Social Responsibility Committee are set out on pages 130 to 132.

The Board reviews and approves strategy, monitors performance toward strategic objectives, oversees implementation

by the ELT and approves matters reserved by the Articles of Association for decision by the Board. The governance

process of the Board is set out in our Articles of Association and the Organisational Regulations and can be found at

https://www.coca-colahellenic.com/en/about-us/corporate-governance.

Corporate Governance Report continued

Division of responsibilities

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 139

Separation of roles

There is a clear separationof the roles of the

Chairand the CEO. The Chair is responsible for

the operation of the Board and for ensuring that

allDirectors are properly informed andconsulted

on all relevant matters. The Chair, in the context

of the Board meetings and as a matter of practice,

also meets separately with the non-Executive

Directorswithout the presence of the CEO. The

Chair promotes a culture of openness and debate

within the Board sessions as well as outside

the formal sessions. The Chair is also actively

involved in the work of the Nomination Committee

concerning succession planning and the selection

of key people. The CEO, Zoran Bogdanovic, is

responsible for the day-to-day management

and performance of the Company and for the

implementation of the strategy approved by

theBoard and leads the ELT.

Board

Director

Month and

year appointed

Board meeting

attended/total

Nomination

Committee

Social

Responsibility

Committee

Audit and

Risk Committee

Remuneration

Committee

Anastassis G. David January 2016 8/8

Zoran Bogdanovic June 2018 8/8

Charlotte J. Boyle June 2017 8/8 4/4 4/4

Henrique Braun June 2021 8/8

Anna Diamantopoulou June 2020 8/8 4/4 4/4 4/4

Olusola (Sola) David-Borha June 2015 8/8 8/8

William W. (Bill) Douglas III

June 2016 7/8 8/8

Reto Francioni June 2016 8/8 4/4 4/4

Anastasios I. Leventis

June 2014 7/8 3/4

Christo Leventis June 2014 8/8

Alexandra Papalexopoulou

June 2015 7/8 8/8

Bruno Pietracci

June 2021 2/2 1/1

Ryan Rudolph

June 2016 2/2

George Pavlos Leventis

May 2023 6/6

Evguenia (Jeny) Stoichkova

May 2023 6/6 3/3

1. Bill Douglas III was unable to attend one Board meeting due to a personal family issue.

2. Anastasios I. Leventis was unable toattend one Board meeting andone meeting of the Social Responsibility Committeedue toa pre-agreed long-standing prior commitment.

3. Alexandra Papalexopoulou was unable to attend one Board meeting dueto a pre-agreed long-standing priorcommitment.

4. Bruno Pietracci retired from the Board and from the Social Responsibility Committee at the AGM on 17 May 2023.

5. Ryan Rudolph retired from the Board at the AGM on 17 May 2023.

6. Evguenia Stoichkova and George Pavlos Leventis were appointed to the Board at the AGM on 17 May 2023.

Corporate Governance Report continued

Division of responsibilities continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 140

Corporate Governance Report continued

The Executive Leadership Team

Zoran Bogdanovic

(51) CEO, Executive Director

Senior management tenure: Appointed

June 2013, appointed Chief Executive

Officer December 2017 (11 years)

Previous Group roles: Zoran was previously

the Company’s Region Director responsible

for operations in 12 countries. He joined the

Company in 1996 and has held a number

of senior leadership positions, including

as General Manager of the Company’s

operations in Croatia, Switzerland and

Greece.

Previous relevant experience:

Prior to joining Coca-Cola HBC in 1996,

Zoran was an auditor with auditing and

consulting firm Arthur Andersen.

External appointments: None

Nationality: Croatian

Naya Kalogeraki

(53) Chief Operating Officer

Senior management tenure: Appointed

July 2016, appointed Chief Operating Officer

September 2020 (7 years)

Previous Group roles: Chief Customer and

Commercial Officer from 2016 to 2020.

From 1998, when Naya joined the Company,

she built her career assuming roles

ofincreased scale and scope, including

Marketing Director, Trade Marketing

Director, Sales Director and Country

Commercial Director, Greece. She has

beenheavily involved in Group strategic

projects and task forces addressing mission-

critical business imperatives. In September

2013, Naya was appointed to the role of

General Manager, Greece and Cyprus.

Previous relevant experience: Naya joined

the Company in 1998 from The Coca-Cola

Company where she held a number of

marketing positions up to Marketing Manager.

External appointments: Naya is a board

member of Casa del Caffè Vergnano S.p.A.,

in which the Group holds a 30% equity

shareholding.

Nationality: Greek

Ben Almanzar

(49) CFO

Senior management tenure: Appointed

April 2021 (2 years)

Previous Group roles: None

Previous relevant experience: Before

joining theCompany, Ben held seior financial

positions in Mars Incorporated, where he

worked for 10 years as Regional CFO, Europe

& Southern Africa and subsequently as Vice

President for Financial Planning, Analytics

and Financial Strategy. Prior to joining Mars,

Ben spent 10 years with Nestlé in a variety

of finance roles in Europe, including CFO of

Nestlé Czech-Slovak, and CFO for Nestlé

Waters in the UK.

External appointments: None

Nationality: Dominican Republic and British

On 15 January 2024 the Company announced that

Ben Almanzar will be stepping down as CFO during the

second quarter of 2024 and will stay with the company

to ensure a smooth transition until the end of May

2024. On 7February 2024 the Company announced the

appointment of Ben’s successor, Anastasis Stamoulis,

who willbe takingover the role of CFO as of 1May 2024.

Jan Gustavsson

(58) General Counsel, Company

Secretary and Chief Corporate

Development Officer

Senior management tenure: Appointed

August 2001 (22 years)

Previous Group roles: Jan served as Deputy

General Counsel for Coca-Cola Beverages

plc from 1999 to 2001.

Previous relevant experience: Jan started

his careerin 1993 with the law firm White

& Case in Stockholm, Sweden. In 1995, he

joined The Coca-Cola Company as Assistant

Division Counsel in the Nordic and Northern

Eurasia Division. From 1997 to 1999, Jan was

Senior Associate in White & Case’s New York

office, practising securities law and M&A.

External appointments: Jan is a board

member of Casa del Caffè Vergnano S.p.A.,

in which the Group holds a 30% equity

shareholding.

Nationality: Swedish

Ebru Ozgen

(53) Chief People & Culture

Officer

Senior management tenure: Appointed

September 2023 (less than 1 year)

Previous Group roles: None

Previous relevant experience: Before

joining the Company, Ebru worked with

Coca-Cola Icecek (CCI) from 1997, where

she progressed through leadership

roles in finance until she was appointed

as the CFO of the Turkey Operation. In

2017, she assumed the Chief Human

Resources Officer role of CCI and became

an Executive Committee member, where

she led the People and Culture agenda and

transformation in business strategy for

Turkey, theMiddle East, Pakistan and Central

Asia operations, bringing a multidisciplinary

approach andaholistic business partnering

mindsettothe People & Culture function.

Ebru started her career in 1992 in Arthur

Andersen & Co, as an auditor before moving

to the FMCG sector.

External appointments: None

Nationality: Turkish

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 141

Corporate Governance Report continued

The Executive Leadership Team continued

Ivo Bjelis

(56) Chief Supply Chain Officer

Senior management tenure: Appointed

January 2022 (2 years)

Previous Group roles: Ivo joined the Group

in 1996 as Plant Manager in Croatia, while in

2002 he took over the position of Country

Supply Chain Manager. Since 2006 Ivo built

his career assuming roles of increased scale

and scope, including Strategic Initiative

Leader for Customer Centric Supply

Chain, Group Supply Chain Processes and

Capabilities Director, Regional Supply Chain

Director, Group Supply Chain Services

Director and Group Supply Chain Operations

Director, leading the development and the

transformation of the Supply Chain strategy

over the years.

External appointments: None

Nationality: Croatian

Marcel Martin

(65) Chief Corporate Affairs and

Sustainability Officer

Senior management tenure: Appointed

Chief Supply Chain Officer January 2015,

appointedChief Corporate Affairs &

Sustainability Officer January 2022 (9 years)

Previous Group roles: Marcel joined the

Group in 1993, holding positions with

increasing responsibility in the supply chain

and commercial functions. Since 1995, he

has held general management assignments

in several of our markets, including as

General Manager for Eastern Romania,

Regional Manager Russia, Country General

Manager Ukraine and General Manager

Nigeria. He became General Manager of

our Irish operations in 2010, Supply Chain

Director in 2015 and is now our Chief

Corporate Affairs and Sustainability Officer.

External appointments: None

Nationality: Romanian

Mourad Ajarti

(47) Chief Digital and

Technology Officer

Senior management tenure: Appointed

October 2019 (4 years)

Previous Group roles: None.

Previous relevant experience: Mourad

has 20 years’ experience with two fast-

moving consumer goods industry leaders,

Procter & Gamble and L’O ré a l. Mourad

started with Procter & Gamble leading SAP

implementation in Morocco, Saudi Arabia

and Europe, and later was CIO for different

lines of business. From 2014 to 2019, Mourad

was CIO for the Asia and Pacific region for

L’Oréal, leading consumer and customer

journey transformation and enabling the use

of big data and advanced analytics.

External appointments: None

Nationality: British and Moroccan

Spyros Mello

(49) Strategy and

Transformation Director

Senior management tenure: Appointed

November 2021 (2 years)

Previous Group roles: Spyros served

as Deputy General Counsel and Chief

Compliance Officer from 2010 to 2021.

Hewas Deputy General Counsel from 2007

to 2009 and Senior Corporate Counsel from

2005 to 2007.

Previous relevant experience: Spyros was

an associate with the law firm of Sullivan &

Cromwell LLP practising securities law and

M&A first in New York from 1999 to 2001 and

then in London from 2001 to 2004.

External appointments: None

Nationality: Greek

Minas Agelidis

(54) Region Director: Austria,

Czech Republic, Estonia,

Hungary, island ofIreland,

Latvia, Lithuania, Poland,

Slovakia, Switzerland

Senior management tenure: Appointed

April 2019 (4 years)

Previous Group roles: Minas joined the

Group in 1999, holding positions with

increasing responsibility in the commercial

function in Greece (National Account

Manager, Athens Region Sales Manager,

National Wholesale Manager, Country Sales

Director). Since 2008, Minas has held general

management assignments in a number of

our markets, including those of Country

General Manager Cyprus, Country General

Manager Bulgaria and Country General

Manager Hungary.

Previous relevant experience: Prior to

joining the Group, Minas spent seven years

at Unilever Greece in managerial positions in

sales and marketing including those of Brand

Manager, Trade Marketing Manager and

National Account Manager.

External appointments: None

Nationality: Greek

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 142

Corporate Governance Report continued

The Executive Leadership Team continued

Frank O’Donnell

(56) Region Director: Armenia,

Bosnia & Herzegovina, Bulgaria,

Croatia, Cyprus, Greece,

Moldova, Montenegro, North

Macedonia, Romania, Serbia,

Slovenia, Ukraine.

Senior management tenure: Appointed

June 2023 (less than one year)

Previous Group roles: Frank joined the

Group in 1992 holding positions with

increasing responsibility in the commercial

function in Ireland, becoming Sales Director

in 2003. From 2010, Frank was Commercial

Director of our Czech/Slovak business

unit. Since 2014, Frank has held general

management assignments in a number of

our markets, including those of Country

General Manager Ireland, Country General

Manager Austria and Country General

Manager Italy.

External appointments: None

Nationality: Irish

Aleksandar Ruzevic

(53) Region Director: Nigeria,

Egypt, Belarus, and Russia

Senior management tenure: Appointed

June 2023 (less than one year)

Previous Group roles: Aleksandarjoined

the Group in 1998 as asalesrepresentative.

He was then appointed Commercial

Director for Serbia and Montenegro. In

2010 Aleksandar joined the Ukrainian team

in the role of Commercial Director, which

he successfully led for four years. In 2014

Aleksandar took the position of General

MAnager in North Macedonia. In 2016 he

became Country General Manager in Serbia

andMontenegro and from 2018 he led the

Russia BU.

External appointments: None

Nationality: Serbian

Barbara Tönz

(53) Chief Customer and

Commercial Officer

Senior management tenure: Appointed

May 2021 (2 years)

Previous Group roles: Barbara joined the

Group in 1998, building her careerfirst in

Switzerland as Trade MarketingDirector,

Sales Director and Commercial Director, and

then in Austria from 2012 as Commercial

Director and Interim General Manager.

Previous relevant experience: In 2016

Barbara enriched her experience within

the Cola-Cola System as Country Director

Sweden for TCCC, with responsibility

expanded to Norway and Iceland in 2019

before she assumed the role of Commercial

Execution Director Europe. Prior to joining

the Group in 1998, she held positions

in brand and customer development at

Unilever.

External appointments: None

Nationality: Swiss

Vitaliy Novikov

(44) Digital Commerce Business

Development Director

Senior management tenure: Appointed

September 2020 (3 years)

Previous Group roles: Vitaliy joined the

Group in 2011 as General Manager of the

Baltics business unit and then held General

Manager roles in Poland and Italy.

Previous relevant experience: Prior to

joining the Group, Vitaliy spent four years at

Johnson & Johnson as Managing Director of

the Ukrainian operation and prior to this he

spent seven years at Henkel in managerial

positions of growing responsibility in Austria

and Ukraine.

External appointments: None

Nationality: Ukrainian

Jaak Mikkel

(49) New Businesses Director

Senior management tenure: Appointed

February 2023 (1 year)

Previous Group roles: Jaak joined the

Group in 2008 as Sales Director for Baltics

and then held roles of General Management

for Pivara Skopje in North Macedonia,

Romania with the latest being General

Manager for Poland & Baltics.

Previous relevant experience: Prior to

joining the Group, Jaak spent ten years

with Shell managing Convenience Retail

businesses in the Baltics, Central Eastern

Europe and in the Nordics.

External appointments: None

Nationality: Estonian

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 143

Men

12 77%

Women 3 23%

Executive Leadership

gender diversity

(number and %)

Executive Leadership Team tenure

(years)

0–1

1–2

2–3

3– 4

4–5

6–7

7–8

8–9 1

22–23 1

Key activities and

decisionsin2023

Frequency of meetings: monthly

Long-term direction setting

• Sponsoring the development and launch of the

new redesign of the Company purpose, values

and leadership manifesto.

• Assessing, approving and reviewing key

initiatives related to processes and projects

optimisation (project Oxygen).

• Evaluating and evolving our 24/7 portfolio

strategy together with our brand partners.

• Reviewing Coffee expansion across the

Group’s markets.

• Assessing our sustainability priorities and

progress of initiatives on the way to deliver

2025 commitments.

• S e t t i n g long-term capability building priorities

and programmes.

• R e v i e w of company-wide talent strategy and

oftalents through talent review forums.

• Overseeing the strategic evolution of Supply

Chain, People and Culture, Commercial,

Finance. Digital & Technology Platform

Services, Strategy & Transformation, and

Corporate Affairs & Sustainability functions.

• Approving and reviewing deployment of major

automation and digitalisation initiatives.

Business planning

• Aligning key priorities and investment strategy

with TCCC.

• Aligning key priorities with strategic partners

–Monster Energy, Premium Spirits and

Coffeepartners.

• Reviewing progress of the aligned priorities,

investments and spending.

• Reviewing and approving annual business plans

for 2024 for all operations and central functions.

• Approving Group and country talent,

capabilities development and succession plans.

Risk, safety and business resilience

• Evaluating the Group’s business resilience

strategies.

• Evaluating and strengthening Group’s Incident

Management and Crisis Resolution capabilities.

• Evaluating the Group’s Risk Register of major

business risks as well as associated risk

response plans.

• Reviewing the Group’s health & safety policies

and material incidents.

• Reviewing the corporate audit plan.

Business case reviews and approvals

• Reviewing and approving progress of selected

key initiatives, data insight & analytics (DIA),

revenue growth management (RGM), digital

commerce, digital & technology platforms,

sustainability, diversity & inclusion (D&I)

andculture.

• Capital expenditure proposals, review

andapproval.

Priority projects

• Oxygen Strategic Projects.

• Culture – redesign of new Company purpose,

values and leadership competencies.

• Customer satisfaction (external and internal

client satisfaction via NPS).

• Initiatives that deliver sustainability benefits.

• Engagement.

• D i v e r s i t y, Equity & Inclusion.

• Cyber security.

• Business Resilience.

• Digital eCommerce platforms and tools.

Responsibilities of the ELT

• Day-to-day executive management of the

Group and its businesses, including all matters

not reserved for the Board or other bodies.

• Development of Group strategies and

implementation of the strategies approved

bythe Board.

• Providing adequate head-office support for

each of the Group’s countries.

• Setting annual targets and approval of annual

business plans which form the basis of the

Group’s performance management, including

a comprehensive programme of strategies and

targets agreed between the Country General

Managers and the Regional Directors.

• Working closely with the Country General

Managers, as set out in the Group’s operating

framework, in order to capture benefits

ofscale, ensuring appropriate governance

andcompliance, and managing performance

ofthe Group.

• Leading the Group’s talent and capability

development programmes.

Corporate Governance Report continued

The Executive Leadership Team continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 144

Dear Stakeholder

The work of the Nomination Committee focuses

on the proper composition and effective operation

of the Board, Board and senior management

succession planning, the oversight of the talent

management framework, as well as employee

engagement and diversity initiatives.

In 2023, the Committee continued to review

thebalance of skills, experience and diversity

of the Board, and the overall length of service

ofthe Board, both as a whole and as part of its

succession planning and consideration of the

need to refresh Board membership. Our Group’s

Nomination Policy for the Recruitment of Board

members is our compass for the recruitment

of new Board members. This year, following the

retirement of two Board members, two new

members were appointed tothe Board at the

2023 AGM. As every year, this year the Committee

continued to coordinate the evaluation of the

Board and the Board committees’ effectiveness

through an externally facilitated assessment.

On the employee side, the oversight of the

Group’s talent development, employee

engagement and diversity initiatives, which

are necessary to ensure that the Group has

the people and skills to deliver on its strategy,

remained a key priority for the Committee.

Regular engagement with senior management

to review results of employee engagement

surveys and get updates on the new International

Leadership Trainee programme, Coke

Summership programme, the progress of

embedding the Group’s Culture Manifesto rolled

out earlier in 2023, talent movements within the

Group and within the Coca-Cola System, as well

as activities to enhance the Group’s preferred

employer status provided excellent insights for

the work of the Committee and in setting our key

priorities for2024.

A summary of the Group’s Nomination Policy for

the recruitment of Board members is available

online and for more details seepage 146.

Reto Francioni

Committee Chair

Highlights 2023

• Succession planning and talent review

• Appointment of two new NEDs

• Engagement and pulse surveys

• Internships and management changes

• Roll-out of the Group’s Culture Manifesto

• New International Leadership

TraineeProgramme

• Strengthened our status as

preferredemployer

Priorities for 2024

• Consideration of ethnicity and other

diversitytargets

• Continued focus on succession planning

forthe Board and the ELT

• Close monitoring of the Group’s talent

development framework and pipeline,

including talent attraction andretention

• Engagement and culture surveys

• Externally facilitated Board and

committeeassessments

• Follow-up actions on outcome

of2023evaluation assessment

Corporate Governance Report continued

Board composition, succession and evaluation

Nomination Committee

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 145

Corporate Governance Report continued

Nomination Committee continued

Role and responsibilities

The function of the Nomination Committee is

toestablish and maintain a process for appointing

new Board members, to manage, in consultation

with the Chair, the succession of the CEO and to

support the Board in fulfilling its duty to conduct

a Board self-assessment. The formal role of the

Nomination Committee is set out in the charter

for the committees of the Board of Directors

in Annex C of the Company’s Organisational

Regulations. This is available online at

www.coca-colahellenic.com/en/about-us/

corporate-governance.

Key elements of the Nomination Committee’s

roleare:

• reviewing the size and composition of

theBoard;

• identifying candidates and nominating new

members to the Board;

• planning and managing, in consultation with the

Chair, a Board membership succession plan;

• ensuring, together with the Chair, the operation

of a satisfactory induction programme for

new members of the Board and a satisfactory

ongoing training and education programme

for existing members of the Board and its

committees as necessary to deliver on the

Group’s strategy;

• setting the criteria for, and overseeing, the

annual assessment of the performance and

effectiveness of each member of the Board

andeach Board committee;

• conducting an annual assessment of the

performance and effectiveness of the

Board, and reporting conclusions and

recommendations based on the assessment

tothe Board; and

• overseeing the employee and management

talent development and succession plans of

theGroup.

The members of the Nomination Committee

are Reto Francioni, Charlotte Boyle and Anna

Diamantopoulou. All members of the Nomination

Committee are independent NEDs. At the AGM

in May 2023, Reto Francioni, Charlotte Boyle and

Anna Diamantopoulou were re-elected for a one-

year term by the shareholders. The Chair of the

Nomination Committee attended our AGM in May

2023 and regularly interacts with representatives

of our shareholders.

Members Membership status

Reto Francioni (Chair) Member since 2016,

Chair since 2016

Charlotte J. Boyle Member since 2017

Anna Diamantopoulou Member since 2020

Work and activities

The Nomination Committee met four times during

2023 and discharged the responsibilities defined

under Annex C of the Company’s Organisational

Regulations. The CEO and the Chief People and

Culture Officer regularly attend meetings of the

Nomination Committee. In addition, the Chair is

actively involved in the work of the Nomination

Committee concerning succession planning and

the selection of key people. In 2023, the General

Counsel also met with the Nomination Committee

on several occasions. During 2023, the work of the

Nomination Committee included consideration of:

• succession planning and development of plans

for the recruitment of new Board members and

senior management and certain members of

the Group’s ELT;

• composition of the Board, including the

appropriate balance of skills, knowledge,

experience and diversity;

• review of the talent management framework;

• review of the newly implemented international

Leadership Trainee programme of the Group;

• oversight of pulse survey and engagement

survey results and focus areas;

• monitoring of internship programme;

• activities and progress of embedding the

Group’s CulturalManifesto following its launch

in 2023;

• activities to strengthen our position in

employerbranding and promote our preferred

employer status;

• coordination of the performance evaluation

and annual assessments of the Board and

itscommittees;

• presentation of the Board and committees’

assessment and alignment on follow-up actions

arising from these evaluations; and

• review of the Director induction process and

training programmes.

During the Committee’s discussions on all

matters detailed above consideration of the

Company’s Inclusion and Diversity and Anti-

Harassment Policy, and where appropriate, the

Board Nomination Policy, as well as the Company’s

commitment to such policies, is taken into

account to ensure they are embedded into the

Group’s activities, programmes and initiatives.

Board Nomination Policy

Our Board Nomination Policy requires that

each Director is recognised as a person of the

highest integrity and standing, both personally

and professionally. Each Director must be ready

to devote the time necessary to fulfil his or her

responsibilities to the Company according to

the terms and conditions of his or her letter

of appointment. Each Director should have

demonstrable experience, skills and knowledge

that enhance Board effectiveness and will

complement those of the other members of the

Board to ensure an overall balance of experience,

skills and knowledge on the Board. In addition,

each Director must demonstrate familiarity with

and respect for good corporate governance

practices, sustainability and responsible

approaches to social issues.

Committee at work

Succession planning

Board composition

Recruitment

Shortlisting

Interview

Balance of skills assessment

Appointment

Induction

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 146

Board members’ skills and experience

Director Corporate governance

Finance, investments

& accounting

FMCG

Knowledge /Experience International exposure

Risk oversight

& management

Sustainability &

community engagement

Our business involves

compliance with many

different regulatory and

corporate governance

requirements across a

number of countries, as

well as relationships with

national governments and

local authorities.

Our business is extensive

and involves complex

financial transactions in the

various jurisdictions where

we operate.

Our business involves the

preparation, packaging,

sale and distribution of

the world’s leading non-

alcoholic beverage brands.

Our business is truly

international with

operations in 29

countries,at different

stages ofdevelopment,

onthreecontinents.

Our Board’s responsibilities

include the understanding

and oversight of the

key risks we are facing,

establishing our risk

appetite and ensuring that

appropriate policies and

procedures are in place to

effectively manage and

mitigate risks.

Building community trust

through the responsible

and sustainable

management of our

business is an indispensable

part of our culture. ESG is

prominent in our business,

in particular workforce

matters, environmental and

climate change issues and

supply chain sustainability.

Anastassis G. David

Zoran Bogdanovic

Charlotte Boyle

Henrique Braun

Sola David-Borha

Anna Diamantopoulou

Bill Douglas III

Reto Francioni

Anastasios Leventis

Christo Leventis

Alexandra Papalexopoulou

Evguenia Stoitchkova

George Pavlos Leventis

Total 10 12 9 13 12 11

Corporate Governance Report continued

Nomination Committee continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 147

We are proud of the diverse skills and experiences of

our Board.

For example, in relation to ESG matters,

Anna Diamantopoulou’s familiarity with the

social protection and welfare state at the EU

Commission High-Level Group, in addition to the

expertise of a number of our Board members

who sit on the Boards of other multi-nationals

that facesimilar challenges and have similar

concerns on the ESG agenda, helped us identify

the commitments that we want to make in the

areaand set the relevant targets.

In addition, connected to the ESG, Anastasios

Leventis, the Chairman of the Social Responsibility

Committee of the Board, is a member of the

European Council of The Nature Conservancy

(TNC), a global environmental non-profit

organisation working to create a world where

people and nature can thrive, and he is a board

member of WWF Hellas (the Greek branch of

WWF). Those experiences support in driving the

environmental agenda and in endorsing Coca-

Cola HBC’s bold sustainability commitments

related to climate, water stewardship, biodiversity

and packaging.

In relation to risk oversight and management,

we are proud that the vast majority of our Board

members possess strong risk management

expertise, developed over time as a result of their

extensive experience in senior leadership positions

in large organizations, as executives and/or as

board members, where the deep understanding

of material risks and their potential impact, the

implementation of mitigation and resolution

as well as contingency plans and the setting of

appropriate internal controls, processes and

policies to effectively address these is paramount

to successfully perform in such senior roles.

Support and training for the Board

The practices and procedures adopted by our

Board ensure that the Directors are supplied on

a timely basis with comprehensive information

on the business development and financial

position of the Company, the form and content

of which is expected to enable the Directors to

discharge their duties. All Directors have access

to our General Counsel, as well as independent

professional advice at the expense of the

Company. They have full access to the CEO

and senior management, as well as the external

auditor and internal audit team.

The Board has in place an induction programme

for new Directors. It involves meetings with the

Chair, members of the ELT and other senior

executives, as well as receiving orientation

training in relation to the Group and its

corporate governance practices. It also includes

meetings with representatives of our sales

force, customers and major shareholders and

visits to our production plants. All Directors

are given the opportunity to attend training to

ensure that they are kept up to date on relevant

legal, accounting and corporate governance

developments. In 2023, our Chief Risk Officer ran

a risk management workshop for the Board. The

Directors individually attend seminars, forums,

conferences and working groups on relevant

topics. The Nomination Committee reviews

Director training activities regularly. Finally, as part

of the continuing development of the Directors,

the Company Secretary ensures that our Board

is kept up to date with key corporate governance

developments. The Board appoints the Company

Secretary, who acts as secretary to the Board.

Board appointments and

successionplanning

Our Board has in place plans to ensure the

progressive renewal and appropriate succession

planning for senior management. These cover the

short, medium and long term, and are regularly

reviewed. Appointments and succession plans are

based on merit and objective criteria to ensure the

Company is promoting diversity (including gender,

social and ethnic backgrounds – see page 146.

cognitive and personal strengths. Pursuant to our

Articles of Association, the Board consists of a

minimum of seven and a maximum of 15 members,

and the Directors are elected annually for a term

of one year by the Company’s shareholders,

which is also in accordance with the UK Corporate

Governance Code. In case of resignation or

death of any member, the Board may elect a

permanent guest to be proposed for election by

the shareholders at the next AGM. In accordance

with the Organisational Regulations, the Board

proposes for election at the shareholders’ meeting

new Directors who have been recommended by

the Nomination Committee after consultation

with the Chair. In making such recommendations,

the Nomination Committee and the Board must

consider objective criteria as above, as well as the

overall length of service of the Board as a whole

when refreshing its membership. Through this

process, the Board is satisfied that the Board and

its committees have diversity, independence

and knowledge to enable them to discharge their

duties, including sufficient time commitment.

Diversity

The Group continues to have a firm commitment to

policies promoting diversity, equal opportunity and

talent development at every level throughout the

organisation, including at Board and management

level, and is constantly seeking toattract and recruit

highly qualified candidates for all positions in its

business. The Group’s D&I Policy applies to all people

who work for us. Further details on the Group’s D&I

Policy are set out on page 49 in the Strategic Report.

The Group believes that diversity at the Board

level acts as a key driver of Board effectiveness,

helps to ensure that the Group can achieve its

overall business goals especially considering our

geographical footprint, and is critical in promoting a

diverse and inclusive culture across the whole Group.

The Board has adopted a Board Nomination Policy,

which guides the Nomination Committee and the

Board in relation to their approach to diversity in

respect of succession planning and the selection

process for the appointment of new Board members.

It does not include targets for either gender or

ethnicity. However, the Board is cognisant of the

recommendations in the FTSE Women Leaders

Review, as well as the targets for gender, ethnicity and

persons in senior board positions in the FCA’s Listing

Rules, and these will be taken into consideration

for succession planning and appointment of new

Board members. The Nomination Committee

is responsible for implementing this policy and

formonitoringprogress towards the achievement

ofitsobjectives.

The requirements and objectives of the Board

Nomination Policy include that the Nomination

Committee is required to take into account all

aspects of diversity, including age, ethnicity, gender,

educational and professional background and

social background when considering succession

planning and new Board appointments; seek a wide

pool of candidates, with a broad range of previous

experience, skills and knowledge; and give preference

to executive search firms that are accredited under

the Enhanced Code of Conduct for Executive Search

Firms. Board appointments are evaluated on merit

against objective criteria with due regard for diversity

to ensure that candidates contribute to the balance

of skills, experience, knowledge and diversity of the

Board. The Board also considers the overall length

of service of the Board as a whole when considering

refreshment of the membership.

Corporate Governance Report continued

Nomination Committee continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 148

The Board understands the benefits of diversity of

gender, ethnicity, knowledge and experience, and

this is reflected in the Board Nomination Policy.

The Policy’s objectives include ensuring female

representation on the Board.

Two Directors retired at the 2023 AGM and,

following recommendation by the Nomination

Committee, two Directors, one male and one

female, were appointed at the 2023 AGM. Female

representation on the Board increased from

around 33% to 38% following appointment of

Evguenia Stoichkova at the 2023 AGM.

Board and ELT gender and

ethnicitymetrics

The FCA’s new Listing Rules on targets for gender

and ethnic diversity apply to the Company for the

first time this financial year. As at 31 December 2023,

the Company had met the target for ethnic Board

diversity and had just over 38% of female Board

representation. Although the female proportion

has increased, the Company is slightly behind

the required 40% target in the FCA Listing Rules.

No senior positions on the Board as described in

the FCA Listing Rules are held by women. Female

representation in the ELT is 20% and in senior

management positions reporting to ELT is 36,79%.

The Board will prioritise improving the Board gender

balance and the Nomination Committee has, and

will continue to, consider this in the context of its

continuous work on succession plans for the Board,

as well as senior management including the ELT.

The following metrics set out the range of gender

and ethnicity as they relate to our Board and ELT as

at 31 December 2023. The ELT refers to the most

senior level of managers reporting to the CEO,

including the General Counsel/Company Secretary

but excluding administrative and support staff, in

accordance with the definition in the FCA’s Listing

Rules. The Board diversity related data is collated

on an anonymous basis directly from each Director

and ELT member using a questionnaire and given

on a self-identifying basis.

Gender representation at Board and ELT level

Number of

Board members

% of the

Board

Number of senior

positions on Board

(CEO,CFO, SID and Chair)

Number

in ELT

% of

ELT

Men 8 62% 3 12 80%

Women 5 38% 0 3 20%

Ethnicity representation at Board and ELT level

Number of

Board members

% of the

Board

Number of senior

positions on Board

(CEO, CFO, SID and Chair)

Number

in ELT

% of

ELT

White British or other White (includingminority-

white groups) 11 85% 12 80%

Mixed/multiple ethnic groups 2 13%

Asian/Asian British

Black/African/Caribbean/Black British 1 8%

Other ethnic group, including Arab 1 7%

Not specified/prefer not to say

1 8%

This includes, as permitted by Listing Rule 9.8.6G, those persons in respect of whom data protection laws in relevant jurisdictions prevent the collection or publication of some or all of the personal data required

tobe disclosed.

CEO is a senior position on the Board, but CFO is not.

Board diversity data is collated on an anonymous basis directly from each Director using a questionnaire and given on a self-identifying basis and without identifying their position on the Board.

Corporate Governance Report continued

Nomination Committee continued

Gender diversity and representation at

Board andELTlevel

The Board is committed to appointing the best

people with the right skills, using non-discriminatory

and fair processes during selection, recognising

the importance of diversity in its business. It

is the Board’s responsibility to oversee senior

management succession planning for a diverse

pipeline of managers and talent identified from

themanagement talent development programme.

A target has been set of 50% female representation

of managers, to be achieved by 2025. This links to

our strategy to develop our people and ensure we

attract and retain a diverse talent pool, and is one

of the five pillars of our growth strategy. Further

information on pages 46 to 51. The Nomination

Committee, in conjunction with theELT, will continue

to monitor the proportion ofwomen at all levels of

the Group and ensure that all appointments are

made with a view to having ahigh level of diversity

within the workplace and inleadership positions.

We are a global company with a diverse geographic

footprint, including in emerging markets. Our

ELT is based in Switzerland where the Company

is incorporated, but the majority of our senior

management reporting to the ELT is located in

a number of other countries. We are currently in

the process of an internal review and mapping of

our senior management and their ethnicity. Until

the completion of this review and mapping we are

not in a place to set meaningful long-term targets

in respect of ethnic minority representation in

senior management positions. The Board intends

to set a target once it is in a position to do so. We

are committed to increasing the diversity of our

senior management population and there will be

a number of initiatives that will be put in place over

the coming years to support this and to ensure that

we have the right pipeline of talent. In the future

we will also look more closely at ethnic minority

representation across the whole Company, not just

at the management population, and report on this

where appropriate.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 149

Corporate Governance Report continued

Nomination Committee continued

2023 actions based on 2022 Board evaluation findings and previousexperience

• Regular updates by the CEO, CFO and Chief Risk Officer on macro factors and considering those in

strategic business decision and risk management oversight.

• Regular reviews of the Russia and Ukraine conflict issue as part of business and risk management

discussions and overview.

• Focus on strategic initiatives in accelerating digital commerce activities, as well as investing intechnology

and solutions driving operational and administrational processes digitalisation andautomation.

• Continued prioritisation on the evaluation of succession plans for Board members and senior

management roles.

• Oversight of people and talent-related matters such as talent programmes, employee pulse surveys,

employer branding initiatives, and health & safety performance reviews.

2023 evaluation findings

• Board composition, management of meetings,

Board support and stakeholder oversight were

rated very highly.

• The atmosphere in the boardroom, the quality of

discussion and debate, as well as the support and

challenge to management were rated very highly.

• The structure and remits of Board committees

and the quality of their reports to the Board were

also very highly rated.

• The Board’s strategic oversight was highly rated

and top priority areas to successfully execute its

2025 Growth Story strategy werevalidated.

• The Board’s oversight on risk was very highly

rated, with cyber security and geopolitical risks

being identified as areas of particular focus on

our risk management approach.

• The succession plans for the executive

management, the Board’s visibility of potential

internal successors and the quality of the

Company’s talent development processes drew

very high ratings.

• The performance of the Board was seen to

havebeen maintained or improved since the

lastreview.

• The opportunity for the Board to draw

lessonsfrom geopolitics over the past

yearwashighlighted.

2024 priorities

• Prioritising ESG related topics, with particular

focus on sustainability.

• Leveraging the learnings from geopolitical,

macro and regulatory developments forstrategic

planning and risk managementpurposes.

• Enhance further getting external perspectives

and insights on priority areas.

• Continued focus on Emerging markets.

• Talent acquisition, development, and retention to

ensure a strong pool of futureleaders.

• Risk management and assessment and

mitigation plans and monitoring geopolitical,

macroeconomic and currency risks.

• Strategic oversight and support to management

in achieving the 2025 Growth Story targets.

• Technology and digital, including cybersecurity.

A robust, independent

methodology

The first stage of the review involved

Lintstock engaging with the Company

Secretary and the Nomination

Committee to set the context for

the evaluation, and to tailor survey

content to the specific circumstances

of the Company. The surveys were

designed to follow up on and further

explore key themes identified in

last year’s evaluation, so that year-

on-year progress can be tracked.

The anonymity of all responses was

guaranteed throughout the process to

promote open and honest feedback.

Lintstock subsequently analysed

the results and delivered reports on

the performance of the Board, the

committees and the Chair, which

were considered at a subsequent

Board meeting. The results of the

review were positive overall, and the

Board was felt to have performed

effectively and maintained a strong

working dynamic. Priority areas

for 2024 were identified and for

the Board to focus on: (a) ESG and

sustainability; (b) closely monitoring

Emerging markets performance and

strategy; (c) attracting, developing and

retaining talent; (d) risk assessment

and mitigation, and closely monitoring

macro, geopolitical and currency

risks; (e) strategic oversight and

supporting management in achieving

the 2025 Growth Story targets; and(f)

technology and digital, including

cybersecurity.

Performance evaluation of the Board

The Nomination Committee led the annual

evaluation of Board and committee performance

with the support of Lintstock, an external

advisory firm we have worked with for the past

eight years. Lintstock has no other connection

to the Company or individual Directors. The

key areas included in the assessment were:

Board composition; stakeholder oversight;

Board dynamics; management of meetings;

Board support; Board committees; strategic,

risk and people oversight; and priorities for

change in 2024. It also took actions to address

the recommendations from the previous (2022)

evaluation, as summarised in the box opposite.

The Chair will lead on the priorities identified to be

actioned during 2024.

In addition to the annual evaluation, the Chair

metwith Directors throughout the year to receive

feedback on the functioning of the Board and

its committees, boardroom dynamics and the

Group’s strategy. Particular focus is given to areas

where a Director believes the performance of

theBoard and its committees could be improved.

The independent Directors met separately

at every Board meeting to discuss a variety of

issues, including the effectiveness of the Board.

An evaluation of each Director (other than the

Chair) was conducted by the Chair and the Senior

Independent Director. The Senior Independent

Director leads the evaluation of the Chair in

conjunction with the NEDs, considering the views

of the CEO, and, as a matter of practice, meets

with the other independent NEDs when each

Board meeting is held to discuss issues together,

without the CEO or other NEDs present. The Chair

also holds meetings with the NEDs without the

CEO present.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 150

Dear Stakeholder

Two decades ago, our Company published its first

Corporate Social Responsibility Report with the

ambition of a ‘Journey to World Class’. Since

then, we have been integrating the aspects of

sustainability, including the environmental and social

pillars, in our business strategy, in our decision-

making process and in our long-term goals. Our

current sustainability commitments, Mission 2025,

are approaching their target year and we proudly

report that our progress there is significant.

In 2023, the Social Responsibility Committee

continued its focus on the implementation of the

Mission 2025 sustainability commitments and the

overall integration of sustainability in the business

strategy, with a core focus on net zero performance

and Pack Mix of the Future scenarios and initiatives,

which not only help our business to decarbonise,

but also contribute to a litter-free world and support

sustainability agenda for our customers. The

Committee reviewed the proposed solutions of

returnable glass bottles and packageless beverages,

the pilot testing of Freestyle Compact® machines

and approach to reusable vessels, the pilot of LitePac

Top in Austria (from shrink film to cardboard holder

for family packs multipacks), the results of KeelClip™

roll-out (cardboard holder for cans multipacks)

across 22 countries, scenarios for increasing of

the rPET content in our markets, and initiatives

for post-consumer collection, including plans for

Deposit Return Schemes (DRS). We monitored

the development of the different ESG regulations

but also the ESG reporting regulations that will

bemandated to medium and large companies.

We are very proud of the bold progress in every

business unit in relation to our NetZeroby40

roadmap, such as renewable energy initiatives,

energy-efficient coolers, supplier engagement,

and to water stewardship projects in water

riskareas.

• Shifting the Company’s commitment of no

deforestation across the value chain from

2030 to 2025, aligned with the Forest, Land

and Agriculture (FLAG) science-based carbon

reduction targets.

• Deep review of mid-term scenarios and

potential initiatives to shape our Packaging Mix

of the Future – advancing sustainable packaging

agenda, with focus on overall decarbonisation

vs ‘business as usual’ and accelerating reuse

solutions while growing profits and revenues

faster than volumes.

• Deep-dive analysis of Group results in various

ESG benchmarks.

• Monitoring innovation projects and

partnerships that support our ESG agenda.

• Ongoing updates on plastic packaging levies,

Packaging and Packaging Waste Regulation,

the new limits set by the EU Commission for

Bisphenol A, product tax developments, Green

Claims, Dual Quality Omnibus Directive.

• Active involvement in Annual Stakeholder

Forum and in Sustainable event with suppliers.

• The launch of the System Sustainability Venture

Fund in partnership with the venture-capital

firm Greycroft.

Highlights 2023

• Close oversight of the ‘Earn our licence to

operate’ pillar as part of our Growth Story

2025, including progress of public Mission

2025 commitments.

• Detailed review of the actions, initiatives,

and progress versus the roadmap of

NetZeroby40, the Company’s commitment

to reaching net zero greenhouse gas

emissions by 2040, combined with science-

based carbon reduction targets by 2030.

• Review of the Company’s outcome of the first

steps of the Science Based Target Network

for Nature (SBTN) methodology, including

full value chain mapping, biodiversity risk and

impact assessment (upstream, downstream,

direct operations) and prioritisation of the key

areas for target setting.

Priorities for 2024

• Endorsement of the next set of the

Company’ssustainability commitments

(2030 commitments).

• Setting the first science-based targets on

biodiversity based on the outcome of the

SBTN methodology.

• Partnerships for innovation in the area of

ESG, with both customers and suppliers.

• Implementation of the updated NetZeroby40

roadmap and 2030 science-based targets

(including separate FLAG targets, Egypt

operations integration, revised target of

scope 3 emissions in line with ‘well below 2

degrees’ pathway) after receiving an approval

by the Science Based Targets initiative (SBTi).

• Progress on sustainable packaging agenda.

• Overview of the social impact programmes.

• Progress on calorie reduction and added

sugar reduction across beverage categories.

• Stakeholder outreach activities.

• Reviewing and streamlining Company

disclosure and reporting standards based

on EU taxonomy, Corporate Sustainability

Responsibility Directive (CSRD), European

Sustainability Reporting Standards (ESRS)

and standards issued by the International

Sustainability Standards Board (ISSB).

• Ongoing activities related to ESG

benchmarking, plastic packaging levies

andproduct tax developments.

Corporate Governance Report continued

Social Responsibility Committee

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 151

Corporate Governance Report continued

Social Responsibility Committee continued

In 2023, the Company was again named

by theDow Jones Sustainability Index as a

leader, with the highest S&P Global Corporate

Sustainability Assessment score in the Beverage

industry, which is the seventh time we have

topped the industry and marks 13 consecutive

years among the top three. We now have the

highest scores and rankings in ten of the most-

recognised ESG ratings (DJSI, CDP Climate and

Water, MSCI ESG, ISS ESG, V.E., Sustainalytics

among them).

During the year we reviewed the high-level

activities of the capital investments related

tosustainability, sustainability communication

strategy, and the capability programme prepared

for different levels in our organisation aiming

to build sustainability knowledge in a tailored,

engaging and simple way. Going forward in 2024,

the Committee will ensure that the business

strategy is fully aligned with the Company’s ESG

agenda and that the Company continues to

create value for employees, communities, society

and the environment. 2024 will be the year when

we are planning to publish our new set of bold,

industry leading sustainability targets in the areas

material for our stakeholders, for our business,

for society, and for the environment. Biodiversity,

water community projects, the requirements of

the CSRD, initiatives to support the Company’s

Packaging Mix of the Future journey, human rights,

our social agenda and impact, ESG programmes

for our suppliers, and customer partnerships

insustainability, will be among the focus areas

in2024.

Anastasios I. Leventis

Committee Chair

Role and responsibilities

The Social Responsibility Committee is responsible

for the development and supervision of procedures

and systems to ensure the pursuit of the

Company’s social and environmental goals, as

set out in the charter for the committees of the

Board of Directors in Annex C to the Company’s

Organisational Regulations. Key areas of

responsibility are:

• establishing the principles governing the

Group’s policies on social responsibility and the

environment to guide management’s decisions

and actions

• overseeing the development and supervision

of procedures and systems to ensure the

achievement of the Group’s social responsibility

and environmental goals

• establishing and operating a council responsible

for developing and implementing policies and

strategies to achieve the Company’s social

responsibility and environmental goals (in all

ESG pillars, such as climate change, water

stewardship, packaging and waste, sustainable

sourcing, health and nutrition, our people and

communities, and biodiversity), and ensuring

Group-wide capabilities to execute such

policies and strategies

• ensuring the necessary and appropriate

transparency and openness in the Group’s

business conduct in pursuit of its social

responsibility and environmental goals

• ensuring and overseeing the Group’s

interactions with stakeholders in relation to

its social responsibility and environmental

policies, goals and achievements, including

the level of compliance with internationally

acceptedstandards

• reviewing Group policies on environmental

issues, human rights and other topics as they

relate to social responsibility

The Social Responsibility Committee comprises

one independent and two non-independent

Directors: Anastasios I. Leventis (Chair), Anna

Diamantopoulou, Bruno Pietracci until May

2023 and Evguenia Stoitchkova from May 2023.

Anastasios I. Leventis and Anna Diamantopoulou

were each re-elected and Evguenia Stoitchkova

was elected for the first time, for a one year term,

by the shareholders at the AGM in May 2023.

Members Membership status

Anastasios I. Leventis

(Chair)

Member since 2016

Chair since 2016

Anna Diamantopoulou Member since June 2020

Bruno Pietracci Member from June 2021

until May 2023

Evguenia Stoichkova Member since May 2023

Work and activities

The Social Responsibility Committee met four times

during 2023. The Committee invited other members

of the Board to attend the meetings, namely

Charlotte J. Boyle, George Leventis and the CEO, as

well as the Chief Corporate Affairs and Sustainability

Officer and additional senior leaders subject to

the discussion topics. During 2023, the Social

Responsibility Committee reviewed and provided

guidance and insights to advance the Group’s

sustainability approach in the following areas:

• Progress and the action plans made against the

17 publicly communicated 2025 sustainability

commitments and their six focus areas.

• Biodiversity impact assessment across the

entire value chain as per the SBTN guidelines.

• Sustainable packaging cross-functional team

agenda and progress towards more sustainable

packaging (rPET, packageless, refillables and

other), and packaging collection and recovery.

• Lifecycle analysis (LCA) of different packaging

scenarios and their impact on the net zerojourney.

• Detailed plans and initiatives for delivery

ofscience-based carbon reduction targets

and NetZeroby40 commitment, including

the Company’s application for setting FLAG

science-based emissions targets.

• Participation of the Company’s CEO in the

Alliance of CEO Climate Leaders at the World

Economic Forum (WEF).

• Investments in different initiatives that deliver

sustainability benefits, the internal carbon

pricing andtotalcost of water.

• The launch of the System Sustainability Venture

Fund in partnership with the venture capital

firmGreycroft.

• Innovative opportunities related to digital twin

in manufacturing plants, green hydrogen, rPET

in-house production, potential enzymatic

recycling of packaging etc.

• Review of progress in decreasing calories in

ourbeverages;

• Health and safety programmes, including Life

Saving Rules andBehavioural Based Safety.

• Social impact community programmes such

as #YouthEmpowered programmes and water

stewardship projects.

• Materiality assessment process and results

ofthe annual materiality survey.

• Egyptian operations sustainability plans

andreporting.

• Review of stakeholder engagement plan andthe

feedback from the Annual StakeholderForum.

• ESG reporting frameworks and benchmarks

such as GRI Standards, UN SDGs, Dow Jones

Sustainability Indices, CDP Climate & Water,

Task Force on Climate-related Financial

Disclosures (TCFD), and the Sustainability

Accounting Standards Board (SASB).

• Review of mandated in the near-future ESG

regulations such as CSRD and the ESRS, EU

taxonomy, EU Deforestation Regulation,

Corporate Sustainability Due Diligence Directive

(CSDDD)etc.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 152

Dear Stakeholder

The Audit and Risk Committee continued to

focus its work during 2023 on monitoring and

strengthening the Group’s internal financial

controls, risk management, quality assurance

and compliance systems, as well as the existing

information system security processes, all of

which are recognised by the Board as essential

components of effective corporate governance.

During 2023, the Audit and Risk Committee

worked closely with corporate audit and finance

teams in overseeing the implementation of

theGroup’s internal control framework.

We have monitored and discussed our risk

management processes, including our risk profile

and mitigation, but also principal risks and risk

appetite. The Audit and Risk Committee reviewed

updates on new auditing standards, accounting

developments and regulatory developments.

Emerging risks identified by the Group were

discussed by the Audit and Risk Committee,

including the impact of climate change on the cost

and availability of key ingredients and impact of

our sustainability performance on our reputation

related risks. Other areas of focus during 2023

are included in the sections about the work and

activities of the Audit and Risk Committee and the

areas of key significance in the preparation of the

financial statements inthisreport.

The Audit and Risk Committee report describes

in more detail the work of the Audit and Risk

Committee during 2023. In performing its work,

the Committee balances independent oversight

with support and guidance to management.

Iam confident to report that the Committee,

supported by senior management and the

external auditor, consistently carried out its duties

toa high standard during the reporting year.

William W. (Bill) Douglas III

Committee Chair

Highlights 2023

• Compliance with financial and non-financial

(including climate-related) disclosures.

• On-going monitoring of the Russia–Ukraine

conflict, including sanctions related issues.

• Overview of the Group insurance

renewalprocess.

• Preparatory work for CSRD implementation.

• Monitoring of the macroeconomic volatility

in several countries of the Group, including

Egypt and Nigeria.

Priorities for 2024

• Monitoring the developments in accounting

and regulatory matters, including potential

changes to IFRS accounting standards and

respective disclosures.

• Ongoing monitoring of risks, as well

as impairment testing of goodwill and

intangibleassets.

• Ongoing monitoring of internal financial

controls, anti-fraud systems and Code of

Business Conduct compliance.

• Ongoing monitoring of the Group’s Business

Resilience, Risk Management and Quality

Assurance programmes.

• Ongoing monitoring of the Group’s Cyber

Security programme.

• Discussing developments and actions

towards CSRD compliance.

• Initiating preparatory work in view of 2025

audit tender.

• Ongoing monitoring of financial markets

and exploring financing options for the bond

maturing in 2024.

• Overseeing the implementation of the

necessary changes in the Corporate Audit

Department and the internal audit policies

and procedures, to comply with new global

internal audit standards to take effect

in2025.

Corporate Governance Report continued

Auditand Risk Committee

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 153

Role and responsibilities

The Audit and Risk Committee monitors the

effectiveness of our financial reporting, internal

control and risk management systems, and

processes. The role of the Audit and Risk Committee

is set out in the charter for the committees of the

Board of Directors in Annex C to the Company’s

Organisational Regulations. This is available in the

Company’s website under coca-colahellenic.com/

en/about-us/corporate-governance. The key

responsibilities and elements of the Audit and Risk

Committee’s role are:

• Providing advice to the Board on whether the

Annual Report including the consolidated

financial statements, taken as a whole, is a fair,

balanced and understandable assessment

of the Company’s position and prospects

and provides the information necessary for

shareholders to assess the Group’s position

and performance, including whether there is

consistency throughout the report including

the financial reporting, whether the report

will form a good basis of information for the

shareholders, and that important messages

are highlighted appropriately throughout the

report.

• Monitoring the quality, fairness and integrity of the

consolidated financial statements of the Group,

and reviewing significant financial reporting issues

and judgements contained inthem.

• Reviewing the Group’s internal financial control

and anti-fraud systems as well as the Group’s

broader enterprise risk management and legal

and ethical compliance programmes (including

computerised information system controls and

security) with the input of the external auditor

and the internal audit department.

• Reviewing and evaluating the Group’s

major areas of financial risk and the steps

taken to monitor and control such risk, as

well as guidelines and policies governing

riskassessment.

• Quarterly review of the company’s principal risks

and the actions the company is taking to manage

those risks.

• Establishing and updating the Risk Appetite

statement which establishes the level of risk

the company is prepared to take in achieving its

strategic objectives.

• Monitoring and reviewing the external

aditor’s independence, quality, adequacy and

effectiveness, taking into consideration the

requirements of all applicable laws in Switzerland

and the UK, the listing requirements of the

London Stock Exchange and Athens Exchange,

and applicable professional standards.

The Audit and Risk Committee comprises

three independent NEDs: Bill Douglas (Chair),

Olusola (Sola) David-Borha and Alexandra

Papalexopoulou, who were each re-elected for

aone-year term by the shareholders at the AGM

in May 2023.

Members Membership status

William W. (Bill)

Douglas III (Chair)

Member since 2016

Chair since 2016

Olusola (Sola) David-Borha Member since 2015

Alexandra Papalexopoulou Member since 2020

The Board remains satisfied that Bill Douglas,

Sola David-Borha and Alexandra Papalexopoulou

possess recent and relevant financial and sector

experience in compliance with the UK Corporate

Governance Code. Bill Douglas was formerly

Executive Vice President and CFO of Coca-Cola

Enterprises, Sola David- Borha has held a number

of senior financial positions and Alexandra

Papalexopoulou has served as a treasurer.

TheBoard is also satisfied that the members

ofthe Committee as a whole have competence

in the sector in which the Company operates in

compliance with the UK Corporate Governance

Code and UK listing regime requirements.

Furtherdetails on their experience are set out in

their respective biographies on pages 130 to 132

and inthe table set out in page147.

The Group CFO, as well as the General Counsel,

external auditor, the Head of Corporate Audit, and

the Group Financial Controller, attend all meetings

of the Audit and Risk Committee. Other officers

and employees are invited to attend meetings

when appropriate. Two NEDs, Henrique Braun

and Christo Leventis were invited to attend all

meetings during 2023. The Head of Corporate

Audit, and, separately, the external auditor, meet

regularly with the Audit and Risk Committee

without the presence of management to discuss

the adequacy of internal controls over financial

reporting and any other matters deemed relevant

to the Audit and Risk Committee. The Chair of

the Audit and Risk Committee attended our

AGM in May 2023 and regularly interacts with

representatives of our shareholders.

Work and activities

The Audit and Risk Committee met eight times,

four of which were by video conference call, during

2023 and discharged the responsibilities defined

under Annex C of the Company’s Organisational

Regulations. The Committee invited others to

attend meetings, including other Board members,

namely Henrique Braun and Christo Leventis, and

additional senior leaders subject to the discussion

topics. The work of the Audit and Risk Committee

during the accounting year included evaluation

of and review of the respective matters, as well as

assessment of management’s mitigating actions

and response plans, in the areas below:

• the Integrated Annual Report including the

consolidated financial statements and the full-

year results announcement for the year ended

31 December 2022 prior to their submission

to the Board for approval, and compliance with

Group policies;

• the interim consolidated financial statements

and interim results announcement for the six-

month period ended 30 June 2023, prior to their

submission to the Board for approval;

• the trading updates for the three-month period

ended 1 April 2023, and the nine-month period

ended 30 September 2023, as well as a trading

update issued in July 2023 for upgrading its

2023 earnings expectations;

• areas of significance in the preparation of the

consolidated financial statements;

• the internal control environment, principal risks

and risk management systems (including the

nature and extent of the principal risks resulting

from the conflict in Russia and Ukraine), and

the Group’s statement on the effectiveness of

its internal controls prior to endorsement by

the Board, concluding that management has

carried out a robust risk assessment process;

• review of the Group’s Risk appetite statement

and the framework for establishing risk

tolerance levels for all risks as a key part of the

risk assessment process; which supports the

application of the risk appetite statement at all

levels within the company;

• the viability statement scenarios and underlying

assumptions and recommendations to the

Board that the viability statement be approved,

including discussion of management’s

conclusions with respect to going concern and

the viability statement;

• the external auditor’s report on the Group’s

IFRS earnings release for the financial

year ended 31 December 2022; including

assessment of the auditor’s enhanced audit

report and key audit matters and conclusion

that there was nothing that warranted the

attention of the Board; and review of external

auditor’s report on the Group’s interim report

for the six-month period ended 30 June 2023;

Corporate Governance Report continued

Audit and Risk Committee continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 154

• report on tax audits undertaken during 2023

and relevant developments for on-going tax

audits in a number of territories;

• approval of changes to 2023 internal audit plan

and approval of the 2024 internal audit plan;

• quarterly reports on internal audit matters

across the Group’s business regions, concluding

that no material failings were identified;

• direct procurement matters and initiatives for

2023, including the Group’s commodities risk

management initiatives for 2023;

• cross-regional audits on cyber security, people

and culture process, anti-bribery compliance,

data privacy compliance and various other

ongoing audits onspecific projects;

• regular reports on health and safety, GDPR

compliance and internal control framework,

quality assurance, environmental protection,

asset protection, treasury and financial risks, anti-

bribery and fraud control, anti-money laundering;

• quarterly reports on business continuity,

security, cyber security, insurance and

enterprise risk management processes.

• review of market updates for Egypt and Russia;

• review of the Purchase Price Allocation exercise

within the framework of the acquisition of the

Finlandia business;

• review and approval of insurance renewal

process proposals;

• update on CSRD;

• update on the Group’s green bond issued in

September 2022 progress on internal control

assessment and integration of CCHBC Egypt;

• reports on litigation and regulatory investigations;

• matters arising under the Group’s Code of

Business Conduct and the actions taken to

address any identified issues;

• an assessment of the skills of the internal

auditors and the sufficiency of the internal audit

budget, confirming of the Internal Auditor’s

quality, experience and expertise for the

business. Reports to ensure that the Audit and

Risk Committee can be satisfied that internal

audit has the appropriate resources. The Audit

& Risk Committee is satisfied that internal audit

has the appropriate resources;

• updates on risk management and business

resilience, including the Group’s response

to the conflict between Russia and Ukraine,

the activation and development of business

continuity strategies and the streamlining of the

Group’s risk management processes; Review

of the Group’s principal risks and the Group’s

updated Strategic Risk Summary;

• reports on the Group’s impairment assessment

processes in connection with the operations

affected by the conflict between Russia and

Ukraine for the interim financial report and Egypt;

• regular updates from the external auditor on

accounting and regulatory developments. Also,

an update on Swiss regulatory developments;

• tax related matters including:

• monitoring progress on both the impact and

implementation status of key international

tax initiatives impacting the Group, namely

the OECD Pillar 2 project and the EU’s Public

country-by-country reporting,

• ensuring the Group is sufficiently structured

and organised to meet its tax obligations (i.e.,

it’s key tax processes and the supporting

people and systems) in a rapidly changing

international tax environment,

• awareness of programmes available to

provide the Group with certainty in the

relationship with tax authorities, e.g., co-

operative compliance programmes etc.,

and progress made by the Group to secure

certainty to the extent possible,

• oversight of open tax audits involving the

Group and ensuring tax related risks and

developments are appropriately managed,

• tax automation initiatives aimed at

solidifyinggovernance and availability

ofdatato support audits,

• reviewing and endorsing the Group’s annual

update of its Tax Transparency Report, and

• awareness of tax input into M&A activity and

new business initiatives;

• approval of changes to chart of authority and

delegation for operational activities;

• external audit plan and pre-approval of audit

fees for 2024;

• consideration of the external auditor’s

independence, quality, and adequacy and

the effectiveness of its audit of the financial

statements; and

• assessment of the Company’s external reporting

to ensure it is fair, balanced and understandable

as a result of the Board’s obligation under the

Corporate Governance Code.

The Audit and Risk Committee was responsible for

the review of the 2023 Integrated Annual Report

including the consolidated financial statements and

associated reports and information. The Committee

received assurances from management and details

on the processes underlying the preparation of

published financial information.

Following evaluation of all available information,

the Audit and Risk Committee concluded and

advised the Board that the 2023 Integrated

Annual Report including the Consolidated financial

statements is fair, balanced and understandable.

Finally, the Board receives and reviews a report

from the Audit and Risk Committee on its

activities and discussions at the Board meeting

following each Audit and Risk Committee meeting.

Areas of key significance in the

preparation of the financial statements

The Audit and Risk Committee considered

a number of areas of key significance in the

preparation of the financial statements in 2023,

including the following:

• appropriateness of critical accounting

judgements and estimates that affect the

reported amounts of assets, liabilities, revenues

and expenses, and the disclosure of contingent

assets and liabilities in the consolidated financial

statements (detailed in Notes 5,14,16,22 and

30 to the consolidated financial statements),

identified by management

• review of the trading environment and resilience

of the Group’s business in light of the conflict

between Russia and Ukraine and strategic

actions implemented to mitigate risks and

restructure business operations;

• review of the annual impairment testing of

goodwill and other indefinite lived intangible

assets testing performed by management and

reviewed by the external auditor under IAS 36

as well as the related sensitivity analysis with

confirmation that management had undertaken

a robust impairment testing process, relying

on both internal information, and other publicly

available metrics to perform their assessment;

• review key assumptions for specific countries,

challenging management drivers of relevant

deviations and performance to date, as well as

countries WACC rates development vs prior year;

• review of the contingencies, legal proceedings,

competition law and regulatory procedures,

including cases involving the national competition

authorities of Greece and litigation matters

inNigeria and Greece, and the impact of these

on the consolidated financial statements and

accompanying notes;

Corporate Governance Report continued

Audit and Risk Committee continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 155

• review of guidance provided by the UK Financial

Conduct Authority and Financial Reporting

Council related to areas of focus for the

2023/2024 reporting season, including financial

reporting, sustainability and climate-related

disclosures, Task Force on Climate-related

Financial Disclosures (TCFD) disclosures,

viability and going concerns, corporate

governance matters and The European Single

Electronic Format standard;

• review of the interim impairment testing of

goodwill and other indefinite lived intangible

assets performed by management in relation to

the Egyptian CGU;

• assess management’s work in conducting

a robust assessment of the risks that

impact the viability and going concern

statements, including review of scenarios

andunderlyingassumptions, taking also

into consideration the renewal of bottler

agreements with The Coca-Cola Company;

• recommended to the Board to approve the

viability statement; and

• deeming appropriate that the Group continues

to apply the going concern basis for the

preparation of the financial statements.

External auditor

PricewaterhouseCoopers AG, Birchstrasse 160,

CH 8050 Zurich, Switzerland (‘PwC AG’) has been

elected by the shareholders as the statutory

auditor for the Group’s statutory consolidated

and standalone financial statements. The signing

partner, for the first year, for the statutory financial

statements on behalf of PwC AG is Patrick Balkanyi,

for the year ended 31 December 2023. The Board,

at the recommendation of the Audit and Risk

Committee, has retained PricewaterhouseCoopers

S.A., 260 Kifissias Avenue – 15232 Halandri, Greece

(‘PwC S.A.’), an affiliate of PwC AG, to act as the

Group’s independent registered public accounting

firm forthe purposes of reporting under the UK rules

for the year ended 31 December 2023. For the third

year, the signing partner, the financial statements

(for the year ended 31 December 2023) on behalf

ofPwC S.A. is Fotis Smyrnis.

The appointment of PwC S.A. has also been

approved by the shareholders until the next AGM

by way of advisory vote for UK purposes. ‘PwC’

refers to PwC AG or PwC S.A., as applicable, in this

Annual Report.

During the accounting period, the members of

the Audit and Risk Committee met on a regular

basis with the appointed PwC signing partners,

both with and without management being present.

This provided the Audit and Risk Committee with

an opportunity for open dialogue, to question

and be satisfied as to the quality of the audit

work performed by PwC and challenge PwC’s

professional scepticism. During the meetings, the

appointed PwC signing partners demonstrated

their understanding of the Group’s business risks

and the consequential impact on the financial

statement risks, especially around areas of key

significance in the preparation of the financial

statements including but not limited to the

trading environment and resilience of the Group’s

business in light of the challenging macroeconomic

conditions, the annual impairment testing,

contingencies and legal proceedings including

taxes. The Audit and Risk Committee took an

active role in reviewing the scope of the audit, the

independence, objectivity and effectiveness of

PwC, and the negotiations relating to audit fees.

The Audit and Risk Committee also met with the

management team, which led the discussions

with PwC, including the Head of Corporate Audit,

to review the performance of PwC without PwC

being present. Following this review process, the

Audit and Risk Committee has recommended to

the Board that (i) a proposal to reappoint PwC AG

be put to a shareholders’ vote and (ii) a proposal

to reappoint PwC S.A. be put to a shareholders’

advisory vote at the next AGM.

PwC has acted as the Group’s principal external

auditor since 2003. The Company ran a competitive

tender for the external auditor services in 2015 which

was overseen by the Audit and Risk Committee.

Following the evaluation of the proposals, the Audit

and Risk Committee concluded in 2015 that the

best interests of the Group and its shareholders

would be served by reappointing PwC as external

auditor and made such recommendation to the

Board. PwC was reappointed by the Board as the

Group’s external auditor on 11 December 2015 with

effect from the financial year 2017. Currently, the

Audit and Risk Committee anticipates that the audit

contract will be put out to tender again in 2025 for

audit services with effect from financial year 2027,

ensuring stability and quality of the audit process.

The Company as a Swiss company is not subject

to mandatory auditor rotation rules in the EU or UK

but understands the requirements. There are no

contractual or other obligations restricting the

Group’s choice ofexternal auditor.

Non-audit services provided by the

external auditor

The Audit and Risk Committee considers the

independence, in both fact and appearance, of

the external auditor as critical and has long had an

auditor independence policy providing definitions

of the services that the external auditor may

and may not provide. In line with the relevant

FRC Guidance, the policy requires the Audit and

Risk Committee’s pre-approval of all audit and

permissible non-audit services provided by the

external auditor, and only for matters that are

clearly trivial to the Company. Such services include

audit, work directly related to audit, and certain tax

and other services as further explained below. In

practice, the Audit and Risk Committee applies the

policy restrictively, and approval for work other than

audit and audit-related services israrely granted.

Under the policy, pre-approval may be provided

for work associated with: statutory or other

financial audit work under IFRS or according to

local statutory requirements; attestation services

not required by statute or regulation; accounting

and financial reporting consultation and research

work necessary to comply with generally accepted

accounting and auditing standards; internal control

reviews and assistance with internal control

reporting requirements; review of information

systems security and controls; tax compliance

andrelated tax services, excluding any tax services

prohibited by regulatory or other oversight

authorities; expatriates’ and other individual

taxservices; and assistance andconsultation

onquestions raised by regulatoryagencies.

For each proposed service, the external

auditor is required to provide detailed back-up

documentation at the time of approval to permit

the Audit and Risk Committee to decide whether

the provision of such services would impair the

external auditor’s independence.

PwC has complied with the policy for the financial

year ended on 31 December 2023.

Audit fees and all other fees

Audit fees: The fees for audit services to PwC and

affiliates were approximately €5.3 million for the

year ended 31 December 2023 (2022: €5.1 million).

The audit fees for 2023 include fees associated

with the annual audit and review of the Group’s

half year report, prepared in accordance with IFRS,

as well as local statutory audits. Fees for audit

services to firms other than PwC and affiliates

were €0.6 million for the year ended 31December

2023 (2022: €0.7 million).

Audit-related fees: Fees for audit-related

services to PwC and affiliates for the year

ended31 December 2023 were €1.0 million

(2022:€1.1 million).

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Audit and Risk Committee continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 156

Tax-related fees: There were no fees to PwC and

affiliates for tax services for the years ended 31

December 2023 and 2022.

All other fees: Fees to PwC and affiliates for non

audit services for the year ended 31 December

2023 were €0.1 million (2022: €nil).

Risk management

During 2023, the Company continued to revise

and strengthen its approach to risk management

as described in detail on pages 86 to 112. The

primary aim of this framework is to minimise

our exposure and ensure that the nature and

significance of all risks we are facing are properly

identified, reviewed, managed and, where

necessary, escalated. Risk assessments are

conducted and discussed at monthly Senior

Leadership Team meetings in all our business

units. These assessments are reviewed by

regional management teams and the Chief

Risk Officer twice a year. In addition, corporate

functions conduct broader risk assessments

across the business with the Chief Risk Officer

bi-annually.

The Company’s Group Risk and Compliance

Committee reviews the emerging as well as the

identified risks biannually and the emerging and

material risks along with mitigating actions are

presented by the Chief Risk Officer to ELT and

the Audit and Risk Committee. This process is

both top-down and bottom-up and is designed to

ensure that risks arising from business activities

are appropriately managed.

The Audit and Risk Committee confirms that the

risk management and internal control systems

have been in place for the year under review

and up to the approval of the annual report

andaccounts. Finally, the Company has in place

third-party insurance to cover residual insurable

risk exposure such as property damage, business

interruption, cyber risks and liability protection,

including Directors’ and officers’ insurance for

ourDirectors and officers.

Internal control

The Board has ultimate responsibility for ensuring

that the Company has adequate systems of

financial reporting control. Systems of financial

reporting control can provide only reasonable

and not absolute assurance against material

misstatements or loss. In certain of the countries

in which we operate, our businesses are exposed to

a heightened risk of loss due to fraud and criminal

activity. We review our systems of financial control

regularly to minimise such losses.

Internal audit

Our internal audit function reports directly to

theAudit and Risk Committee, which reviews and

approves the internal audit plan for each year. The

internal audit function consists of approximately

40 full-time professional audit staff mainly based

in Athens, Sofia, and Lagos, covering a range of

disciplines and business expertise. One of the

responsibilities of the internal audit function is

to provide risk-based and objective assurance to

the Board as to whether the Group’s framework

of risk management, including internal control

framework, is operating effectively. For this

purpose, the Head of Corporate Audit makes

quarterly presentations to the Audit and Risk

Committee and meets regularly with the Audit

and Risk Committee without the presence of

our management. In addition, the internal audit

function reviews the internal financial, operational

and compliance control systems across all the

jurisdictions in which we operate and reports its

findings to management and the Audit and Risk

Committee on a regular basis.

The internal audit function focuses its work on

the areas of greatest risk to us, as determined

by a risk-based approach to audit planning.

As part of our commitment to maintaining

and strengthening best practice in corporate

governance matters, we also consistently seek to

enhance our internal control environment and risk

management capability. The internal audit function

carries out work across the Group, providing

independent assurance, advice and insight to

help the organisation accomplish its objectives

by bringing a systematic, disciplined approach to

evaluating and improving the effectiveness of risk

management, control and governance processes.

In December 2023, the Audit and Risk Committee

agreed the FY24 audit plan to be undertaken by

the internal audit team. The audit plan coverage is

based on risk, strategic priorities and consideration

of the strength of the control environment. The

internal audit function prepares audit reports

and recommendations following each audit, and

appropriate measures are then taken to ensure that

all recommendations are implemented. Significant

issues, if any, are raised at once. Therewere no

such issues in 2023.

The Board has adopted a chart of authority,

defining financial and other authorisation limits

and setting procedures for approving capital and

investment expenditure. The Board also approves

detailed annual budgets. It subsequently reviews

quarterly performance against targets set forth

in these plans and budgets. A key focus of the

financial management strategy is the protection

of our earnings stream and management of

our cash flow. Our internal audit function has

conducted an annual review of the effectiveness

ofour risk management system and internal

control systems in accordance with the UK

Corporate Governance Code.

The review included bi-annual reviews with

the Chief Risk Officer on the operation of the

enterprise risk management program, regular

review of our financial operations and compliance

controls and consideration of the Company’s

principal risks. Part of this review involves regular

review of our financial, operational and compliance

controls, following which we report back to the

Board on our work and findings as described

above. This allowed us to provide positive

assurance to the Board to assist it in making

the statements that our risk management and

internal control systems are effective, as required

by the UK Corporate Governance Code. Further

information is set out on page 123.

The key features of the Group’s internal control

systems that ensure the accuracy and reliability of

financial reporting include: clearly defined lines of

accountability and delegation of authority; policies

and procedures that cover financial planning and

reporting; preparation of monthly management

accounts; and review of the disclosures within

the Annual Report from function heads to ensure

that the disclosures made appropriately reflect

the developments within the Group in the year

and meet the requirement of being fair, balanced

andunderstandable.

The Audit and Risk Committee reviews the

results of the internal audit reports during each

meeting, focusing on the key observations of

anyreports where processes and controls require

improvement. The Audit and Risk Committee was

also provided with updates on the remediation

status of management actions of internal audit

findings and on the internal audit quality assurance

and improvement programme at each meeting.

Aparticular focus during 2023 was the robustness

of the internal control systems and processes

around risk management, in light of the conflict

between Russia and Ukraine.

The Audit and Risk Committee was kept informed

of any changes or adaptations to ensure full

functionality as the Company continued to operate

under the circumstances and uncertainties of the

conflict between Russia andUkraine.

The Group CFO, the Country General Managers and

Country CFOs have access to the implementation

status of the recommendations at all times.

Whereinternal or external circumstances give

rise to an increased level of risk, the audit plan is

modified accordingly.

Corporate Governance Report continued

Audit and Risk Committee continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 157

Nevertheless, no significant cases occurred this

year. Any changes to the agreed audit plan are

presented to and agreed by the Audit and Risk

Committee. A compliance audit was conducted in

our operations in Russia and Belarus at the end

of2023.

Cyber security and Anti-money

laundering

There were no significant cyber security incidents

in the last five years. For further details as to the

identification of cyber security as a principal risk

see page 96. In addition, there were no money

laundering incidents to report.

Business conduct and anti-bribery

We seek to grow our business by serving

customers and consumers and conduct all

business activities with integrity and respect.

The Board is responsible for ensuring appropriate

procedures and processes are in place to enable

our workforce to raise any issues of concern

and is satisfied that the processes in place are

appropriate. The Board maintains zero tolerance

regarding breaches of our Code of Business

Conduct and anti-bribery policies, as well as any

attempts to retaliate against our people who

report potential violations. We have mandatory

training for all our people, including our ELT, so

that everyone understands our Code of Business

Conduct, and we hold additional targeted anti-

bribery training for employees working in areas

weassess as high risk.

A Code of Business Conduct and Anti-Bribery

Policy course is available on-line to all employees

and includes a knowledge test, acknowledgement,

and re-commitment to compliance with the Code

and its related policies. At the end of the last

training wave in 2021, 26,319 employees passed

the course, which was 97.7% of the total active

population. Since then, we continued to train

every newly hired employee. In 2023 we trained

5,798 employees, including 994 employees in the

Egypt BU. As in the past, this training will continue

to be a regular requirement for all employees,

witha refresher requirement every three years.

In 2023, our communication plan on compliance

included several initiatives to continue raising

awareness on business ethics among our people,

like our annual Ethics and Compliance Week was

rolled out across our business units. We have also

an established anti-bribery due diligence process

for third parties who have contact with public

authorities on behalf of our Company.

For further information please see the Anti-Bribery

Policy and Code of Business Conduct in the

Company’s website under coca-colahellenic.com/

en/about-us/corporate-governance/policies.

Whistleblowing

We have established grievance mechanisms,

including an independently operated

whistleblower ‘Speak Up! line’, available

inall CCHBC countries in local languages to

ensure any concerns can be raised. In 2023,

we investigated 640 allegations (2022: 589)

ofwhich 422 (2022: 324) were received through

the ‘Speak Up Hotline’. All allegations involving

potential Code of Business Conduct violations

were investigated in accordance with the Group

Code of Business Conduct Handling Guidelines.

Of those investigated, 164 (2022: 219) matters

were substantiated as code violations of which

18(2022: 20) involved an employee in a managerial

position or involved a loss greater than €10,000.

For details concerning the handling of allegations

received in 2023, see our website. You can find

more on allegations investigated and violations

uncovered in our GRI index.

Through the ‘Speak Up! line’, we receive, retain,

investigate and act on employee, officer,

consultant, intern, secondee or agent of the

Company’s complaints or concerns regarding

accounting, internal control, suspected

fraudulent conduct, corrupt conduct, violation

of any applicable antitrust and competition law

rules, violation of personal data protection and

company system security rules, endangerment

of an individual’s or individuals’ health and safety,

endangerment of the environment, commission

of a criminal offence, failure to comply with any

legal or regulatory obligation, and concealment

ofany information pertaining to any of the above,

or other ethical matters.

This includes any matters regarding the

circumvention or attempted circumvention of

internal controls, including matters that would

constitute a violation of our Code of Business

Conduct and related policies or matters involving

fraudulent behaviour by officers or employees

of the Group. Individuals can report all such

allegations, complaints or concerns in local

languages, also directly to their Ethics and

Compliance Officer, General Manager, Function

Head, the Senior Audit Manager – COBC &

Compliance, the Head of Corporate Audit,

orourGeneral Counsel.

All communications received directly by the

above Company’s representatives or through

theSpeak Up! line are kept confidential and, where

requested, anonymous. The Head of Corporate

Audit liaises regularly with the General Counsel

and communicates all significant allegations

to the Chair of the Audit and Risk Committee.

All matters received via the Speak Up! line or

any other reporting mechanism are thoroughly

investigated. The Audit and Risk Committee

receives summary reports of escalated incidents

and instances of whistleblowing together with the

status of investigations and, where appropriate,

management actions to remedy issues identified.

The Committee reports to the Board on such

matters, which reviews and considers those

reports at least bi-annually as appropriate.

Disclosure Committee

A Disclosure Committee has been established,

and disclosure controls and procedures have

been adopted to ensure the accuracy and

completeness of our public disclosures. The

Disclosure Committee is composed of the Group

CFO, the General Counsel, the HeadofInvestor

Relations and the Group Financial Controller.

Performance reporting

Reports on our annual performance and

prospects are presented in the Annual Report

following recommendation by the Audit and

Risk Committee. In line with UK practice, we

have adopted half-year and full-year reports,

and Q1 and Q3 trading updates. Internally,

our financial results and key performance

indicators are reviewed by the ELT on a monthly

basis. This information includes comparisons

against business plans, forecasts and prior-year

performance. The Board of Directors receives

updates on performance at each Board meeting,

as well as a monthly report on our business and

financial performance.

Corporate Governance Report continued

Audit and Risk Committee continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 158

Dear Shareholder,

As the Chair of the Remuneration Committee, I

am pleased to share the Directors’ remuneration

report for the year ended 31 December 2023,

which includes: the Directors’ remuneration policy

that shareholders will be asked to approve at the

AGM in May 2024; and the annual remuneration

report reflecting how the Directors’ remuneration

policy has been implemented during 2023.

2023 has been a year where our new purpose

has opened opportunities for our customers,

partners and employees. Through continued

focus on our 24/7 beverage strategy, we delivered

another year of record financial results with margin

improvements, revenue growth and cash flow

generation. After the challenges of recent years,

the business is well positioned to continue driving

growth in revenue, profit and earnings.

The excellent financial and non-financial results

in 2023 are testament to the hard work of all our

people. It is the Committee’s role to ensure that

our people are rewarded for past performance

as well as appropriately incentivised to deliver

future performance, and that their dedication and

commitment is recognised and considered in the

context of our broader stakeholder group.

Fundamental to the Committee’s decision

making during the year is consideration of the

remuneration of all our employees. We have

regular updates at Committee meetings from our

Chief People and Culture Officer and our Head of

Rewards. These updates reflect the importance

of our 15,000-strong sales force of business

developers who are critical employees, directly

serving our customers.

Highlights 2023

• Excellent financial results, delivering a third

year of double-digit growth and record profits

• Investing and opening up our people’s

potential through our commitment to

peopledevelopment and the unveiling

ofourculture manifesto

• Continued to strengthen our ongoing

engagement with shareholders, ensuring that

their feedback and views were considered in

the Committee’s decision making

• Reviewed the pay arrangements of our wider

workforce, taking into account the impact

ofinflation and the cost of living

• Considered broader trends related to

legislative and regulatory development,

outcomes from the AGM 2023 season

andfuture trends in executive reward

Priorities for 2024

• The Committee will use this year to consider

our approach to reward for the top 40 senior

leaders, including Executive Directors,

to ensure our strategy and remuneration

policy remains competitive and appropriate,

incorporating best practice, feedback from

shareholders and emerging trends

• Subsequently we will do a similar review

ofreward policies and pay arrangements

forthe wider workforce

• The Committee will focus on pay equity

strategy and execution across all workforce

segments in the Group

• We will maintain ongoing engagement

withour shareholders with a commitment

toconsult on any future changes and

continue to seek their feedback on

remuneration issues

Directors’ remuneration report

Letter from the Chair of the Remuneration Committee

Opening up opportunities

for our people”

Net sales revenue

€10,184.0m

2022: €9,198.4m

Comparable EBIT

€1,083.8m

2022: €929.7m

Free cash flow

€711.8 m

2022: €645.1m

Comparable EPS

€ 2.078

2022: €1.706

ROIC

16.4%

2022: 14.1%

Included in MIP

Included in PSP

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 159

Directors’ remuneration report continued

Letter from the Chair of the Remuneration Committee continued

The Group’s remuneration philosophy and policies

are designed to attract, motivate and retain the

talented people we need to meet our strategic

objectives and to give them due recognition.

Coca-Cola HBC AG is domiciled in Switzerland

and we have a primary listing on the London Stock

Exchange. We therefore ensure that we adhere

to UK regulations and best practice, except

where these conflict with Swiss law, which takes

precedence. We receive regular updates from our

remuneration advisers on UK best practice and

market trends, and we also ensure we are current

with pay trends in our markets, reflecting our

geographic footprint and international peers.

This year, there were no significant changes in

regulation and the format of this year’s Directors’

remuneration report is consistent with last

year. As always, I welcome your feedback and

suggestions regarding anything we can do to

improve the report.

The Remuneration Committee continues to

focuson ensuring that the remuneration policy

remains fair, transparent and competitive, and

that the approach to remuneration contributes

to driving our growth strategy and long-term

sustainable performance.

Remuneration in context

2023 was a third year of double-digit growth and

record profits. As presented in our full-year results,

focused execution of our 24/7 strategy delivered

strong performance, with organic revenue up

16.9%. We continued to deliver volume growth,

share gains and record levels of free cash flow.

The strength of our 24/7 portfolio, our ongoing

commitment to develop bespoke capabilities,

and our diversified country footprint, are the

foundations which support our continuous growth.

Despite the challenging macroeconomic and

geopolitical environment, we continued with

integrating our Egypt acquisition and we made

significant progress towards our Mission 2025 and

NetZeroby40 goals. In addition, we continue to

explore new ways to invest in our future with our

€100k Start-Up Challenge, now in its second year,

opening up opportunities to discover innovations

from across the start-up ecosystem, which are

aligned to the business priorities. Sustainability

is integrated within every aspect of our business,

creating and sharing value for all our stakeholders.

We are proud to make a strong contribution to

developing the societies in which we operate

through employment and our wider supply

chain, as well as through supporting community

projects. Our progress is recognised by the

most important ESG benchmarks, such as being

ranked as the world’s most sustainable beverage

company for the seventh time by Dow Jones

Sustainability Indices 2023, MSCI ESG rating

ofAAA, and CDP Climate and Water of A rating

forboth categories, amongst others.

Our key financial highlights include:

• organic revenue up 16.9% and reported revenue

up 10.7%;

• organic revenue per case up 15.0%, reflecting

the benefits of revenue growth management

initiatives throughout the year;

• comparable EBIT up 16.6% to €1,083.8 million,

with organic EBIT up 17.7%, principally driven

by organic growth across our markets, only

partially offset by negative foreign currency

movements;

• comparable EPS up 21.8%;

• another year delivering record free cash

flow, with free cash flow increased by 10.3%

to €711.8million, largely reflecting higher

operating profit; and

• proposed ordinary dividend of €0.93 per share,

up 19.2% year on year and representing a

45%payout.

Stakeholder experience

Our shareholders

Shareholder engagement

As detailed in last year’s remuneration report,

to recognise the performance of the Group and

the contribution of the Chief Executive Officer

(CEO) since appointment, the Committee took

thedecision to apply a one-off increase in the

CEO’s Performance Share Plan (PSP) award

to450% of salary.

Whilst the proposed increase was within the

remuneration policy limits and was designed

to reward the CEO for the delivery of our 2025

Growth Story Commitments, the Committee

recognised that there were significant minority

votes against Resolutions 7 and 9, the advisory

votes to approve the UK remuneration report and

the Swiss statutory remuneration report. Each

was passed with the support of 68.39% of the

votes cast. Iunderstand and acknowledge the

significance ofthis outcome.

Ahead of the change being proposed, the

Committee actively engaged with shareholders

on the challenges it faced in operating the

current remuneration policy within the current

macroeconomic environment to ensure it struck

the rightbalance in incentivising and rewarding

management for strong performance, whilst

adhering to best practice.

Following the AGM, I consulted with investors to

understand the level of support received on the

remuneration report. The key pieces of feedback

received centred on (i) the one-off increase in

the PSP opportunity for the CEO, where some

shareholders felt that, although within the policy

limits, the circumstances were not extraordinary

and therefore did not justify the increased

opportunity; and (ii) windfall gains related

tothePSP award vesting in the year.

During 2023, we therefore continued our

engagement programme, actively engaging with

38 shareholders as well as proxy advisers. We held

meetings with ten of our largest shareholders

who had accepted our invitation to meet. This

group collectively owned approximately 60%

of our shares. Typically, these were positive and

constructive discussions, and we are grateful for

the ongoing dialogue.

The Committee recognises the feedback from

shareholders. As a Committee and in consultation

with the Chair, we actively considered alternative

approaches to implement the remuneration policy,

which balanced UK governance expectations whilst

ensuring that the remuneration policy recognised

the performance of the executive team and drove

delivery of our future growth strategy.

Reflecting on the feedback received from

investors, the Committee agreed that, for

2024, the PSP award limit would revert to the

normal policy level (330% of salary), and no

material one-off decisions would be made on the

implementation of the policy. We recognise that,

over the past few AGMs, remuneration-related

resolutions have received a significant minority

of votes against. Asdetailed further on in my

letter, the Committee intends to undertake a

review of the remuneration policy over the course

of 2024 and consider whether it remains fit for

purpose or whether more substantive changes

are required going forward. If any material changes

are proposed, theCommittee iscommitted

toactively engage with all stakeholders ahead

ofthe 2025 AGM.

I would like to thank our shareholders for taking

the time to meet with me in 2023 and provide

theirfeedback on the approach to Executive

Director remuneration as well as the important

topic of our approach to the wider workforce

andour stakeholders.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 160

Directors’ remuneration report continued

Letter from the Chair of the Remuneration Committee continued

Shareholder experience

Regarding the experience of our shareholders,

a dividend of €0.78 per share was distributed

in 2023, and a dividend of €0.93 per share is

proposed for 2024, up 19.2% year on year.

We remain committed to making progressive

dividend payments in the future. And in line

with the Group’s capital allocation framework,

inNovember, the Board approved a share

buybackprogramme aimed at returning up

to€400 million to shareholders.

Our employees

The Committee receives regular updates on our

active employee engagement activities. During

this sustained period of uncertainty and high

inflation, our people have continued to exhibit

resilience, commitment and passion for what

they do, which is evident with the continued

high employee engagement scores at 86%, one

percentage point higher than 2023. To ensure

we are remaining market competitive when

remunerating our workforce, we continued to

review various data sources on market pay, and

provided ad hoc increases in addition to the annual

increase in many of our markets, ensuring that

our talent and our frontline employees are the

focus of these additional increases. This emphasis

on performance and market competitiveness is

consistent with the reward philosophy we seek

across all levels of our workforce.

In addition to reviewing pay practices, benefits

and wellbeing remain a priority, and in 2023 we

organised a mental health awareness session

focusing on resilience and stress management.

We also conducted a session on financial

wellbeing, with valuable insights and strategies

to manage financial pressures. The Committee

continues to provide strong oversight on our

rewards practices, ensuring remuneration for

ourwider workforce remains competitive and

fitfor purpose in 2024.

As the Director responsible for Workforce

Engagement, I attend the work councils’ meetings

to gather insights from representatives across

the Company. During 2023, meetings included

discussion on workforce concern about inflation

and its impact. The Company’s decision to provide

one-off bonuses provided at the end of 2023,

to help alleviate higher cost of living, was well

received by the workforce. As in previous years,

I interacted directly with the representatives

toget their wider insights, which I took back

totheCommittee for discussion and to share

withthe Board.

As in prior years, we supported humanitarian

efforts for colleagues and communities impacted

by war or natural disaster, alongside the Coca-

Cola System partners and the Ukrainian Red

Cross. In December 2023, we also announced

the establishment of a charitable foundation

dedicated to supporting local communities

wherewe operate.

We continued our efforts to build an inclusive

workplace and a diverse workforce to reflect our

customer base and communities. Our strategy

starts from retention, complemented by external

hiring, to create a gender-balanced organisation,

and we’ve committed to have at least 50% of

manager positions held by women by 2025. The

entire Executive Leadership Team volunteered to

sponsor participants of our Women in Leadership

programme, acting as sponsors offering

assistance in navigating common career barriers.

Base salary arrangements

The Committee considered a number of

factors when reviewing the base salary of the

CEO in 2023. This included: consideration of

our wider workforce experience (there was an

average 7.3% salary increase across the Group)

market data against the FTSE 100 and broader

international FMCG peer group; and overall

business performance. Balancing these factors,

weapproved a 6.3% increase effective 1 May 2023.

Incentive outcomes

The Committee’s role includes incentivising strong

business performance and appropriately rewarding

contributions to the Company’s long-term

success. The Committee has reviewed the policy-

based outcomes under the annual Management

Incentive Plan (MIP) and the PSP.

Against recent headwinds of high, albeit tempering

inflation in Europe, continued war in Ukraine and

Russia, a bank note crisis and significant currency

devaluation in Nigeria, and a temporarily weaker

market in Egypt, the Company outperformed

against both expectations and the prior year.

MIP

As per the prior year, the Committee agreed it

wasappropriate to remove the impact of Russia

and Ukraine both in the targets and performance

of the business, given the ongoing war. The

outcome reflects record levels of revenue,

comparable EBIT and free cash flow, which the

2023 MIP was based on, against a challenging

backdrop when set.

The formulaic MIP outcome for the CEO

was 76% of the maximum opportunity, with

both theperformance targets and actual

performancedetermined.

When determining performance, the Committee

took into account the strong results and business

context highlighted above, including the handling

of the challenges posed by the Russia-Ukraine

war, overall exceptional business performance,

increased engagement of our employees and

overall progress towards our sustainability

goals. Taking this performance in the round, the

Committee determined that this outcome is a

fair reflection of wider performance, with 50%

of the MIP payout being deferred into shares

for three years, ensuring further shareholder

alignment. Details of the targets, performance

against themand the plan outcomes are set out

on pages177 to 178.

PSP

Reflecting exceptional longer-term performance

over the three years ending 2023, the Group

exceeded both the maximum targets for EPS

and ROIC under the 2021-23 PSP. This was our

first year where the plan also included reduction

of CO

emissions as a third performance metric.

Following the notification from the third party

(IFEU, an institute preferred by TCCC as the

source on material emissions factor change),

and in line with GHG Protocol guidance a

recalculation of the base year 2017 onwards was

triggered in 2023, and again in 2024, to reflect

the annual release of emissions factors. Given

the methodology change to the base year

used for emissions data, which directly impacts

future years, the Committee considered it

appropriate for this change to flow through to

the targets attached to the 2021 PSP award.

In doing so, theCommittee is confident that

the revisedtargets were not materially easier

orharder to achieve than the original targets.

Further details are set out on pages 178 to 179.

At the time targets were set in September 2021,

Russia and Ukraine were included while Egypt

wasexcluded, and the above results reflect this.

At the end of the period, the Committee

considered the formulaic outcome was an

appropriate reflection of the underlying

performance of the Group, not least factoring in

the macroeconomic headwinds impacting key

markets the Group operates, in and approved the

formulaic outcome of 94% of maximum. The 2021

PSP award was granted at a higher share price

than the 2020 PSP award, therefore there are

nowindfall gains associated with this award.

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Directors’ remuneration report continued

Letter from the Chair of the Remuneration Committee continued

Looking ahead

Implementation of the policy in 2024

We expect average employee salary increases

across the Company at 6.2%. It is anticipated that

the CEO’s increase will be lower than that of the

wider workforce. The increase will be effective

from 1 May 2024 and will be communicated in the

subsequent Directors’ remuneration report.

As in 2023, the 2024 MIP business performance

will be measured based on performance

against three KPIs: revenue (40% weighting),

comparable EBIT (40% weighting) and free cash

flow (20%weighting). There will be no change

tothemaximum MIP opportunity for 2024

(140%of salary).

To achieve our growth ambitions, and to deliver

continued financial performance that creates the

desired returns, the Committee believes strongly

that we must continue to retain and incentivise

the management team in a fair manner.

The Committee intends that 2024 PSP awards

will be made subject to the same performance

metrics as the 2023 awards: ROIC (42.5%),

EPS (42.5%) and reduction of CO

emissions

(15%). Asin the prior year, the Committee has

determined to exclude the impact of Russia and

Ukraine from the targets of the 2024-26 plan

in light of the continued uncertainty as a result

of the Russia-Ukraine war. We will proceed with

providing the individual grants for the 2024

PSP in March, asper the usual process, with the

maximum awardfor the CEO set at 330% of salary

as inprevious years and as noted above.

The targets for the 2024 PSP award take into

account of our business plan, market expectations

and the wider economic and geopolitical

environment. The change in the ROIC targets

relative to prior years reflects the level of invested

capital deployed, which has been impacted by

strategic acquisitions (including the acquisition

in Finlandia) and recent share buybacks. The

Committee has applied the same approach to

target setting as in previous years and believes

that the proposed target range for ROIC and the

other performance metrics are appropriately

stretching relative to the business plan and

external forecasts of performance.

Remuneration policy going forward

As we further embed our new purpose, the

Remuneration Committee will continue to keep

the policy under review, ensuring that plans and

programmes relating to remuneration support

the Company’s strategy and objectives, and are

appropriately linked to shareholders’ interests.

We will continue to review the wider workforce

remuneration arrangements with a special focus

on our frontline workers and specifically our

business developers’ salaries and incentives.

We will consider the remuneration strategy for

our workforce, ensuring it is aligned with the

Company’s new purpose, strategies and culture.

We will continue our journey in diversity, equity

and inclusion (DEI) by ensuring balance in our pay

equity practices and flexible work arrangements.

With regard to Executive Director remuneration,

the Committee welcomes the wider debate

that is currently being held regarding the

overallcompetitiveness of remuneration

withinUK-listed businesses.

Whilst the Remuneration Committee believes

that the remuneration policy approved by

shareholders at the AGM in May 2023 remains

broadly fit for purpose, the Committee intends to

undertake a detailed review of the remuneration

policy that applies to our top 40 senior leaders,

including Executive Directors, over the course of

the year. The key objectives will be to ensure that

the remuneration policy supports the delivery

of the Group’s strategy and is an appropriate

motivation and retention tool for the senior

management team. We welcome feedback and

we are committed to continuing engagement

withshareholders on this important topic during

the year.

Finally, on behalf of the Committee, I would like

to thank our shareholders for the time taken

to engage during the year, and I look forward to

engaging with you further in the year ahead.

As Chair of the Committee, I hope you will support

the remuneration-related resolutions at the AGM.

Charlotte J. Boyle

Committee Chair

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Directors’ remuneration report continued

Reward strategy and objective

The objective of the Group’s remuneration philosophy is to attract, retain and motivate employees who

are curious, agile and committed to high performance. Our reward strategy seeks to promote a growth

mindset and reinforce desirable behaviours, ensuring that employees are fairly rewarded and that their

individual contributions arelinked to the success of theCompany.

Variable pay is an important element of our reward philosophy. A significant proportion of total

remuneration for top managers (including the CEO and the members of the Executive Leadership

Team(ELT) is tied to the achievement of our business objectives. These objectives aredefined by key

business metrics that are consistent with our growth strategy and will deliver long-term shareholder

value. The variable pay element increases or decreases based on the achievedbusiness performance.

Through equity-related long-term compensation, we seek to ensure that the financial interests

oftheCEO, the members of the ELT and senior managers are aligned with those of shareholders.

All of our remuneration plans, both fixed and variable, are designed to be cost-effective, taking into

account market practice, business performance, and individual performance and experience where

relevant. We pay close attention to our shareholders’ views in reviewing our remuneration policy

andprogrammes.

In line with the UK Corporate Governance Code, the following factors, which align well with our

objectives, were also considered:

Remuneration throughout the organisation – a snapshot

Clarity

Remuneration arrangements

should be transparent and

promote effective engagement

with shareholders and workforce.

We believe that our policy provides transparency for Executives and

shareholders about what performance we are looking for across

our portfolio.

The Remuneration Committee has aimed to incorporate

simplicity and transparency into the design and delivery of our

remuneration policy.

We aim for disclosure of the policy and how it is implemented to

be in a clear and succinct format.

Simplicity

Remuneration structures should

avoid complexity and their

rationale and operation should

be easy to understand.

Our remuneration arrangements for Executive Directors are

purposefully simple, comprising fixed pay (salary, benefits,

pension), a short-term incentive plan (the MIP) and a long-term

incentive plan (the PSP).

The remuneration structure is simple to understand for both

participants and shareholders and is aligned to the strategic

priorities of the business.

Risk

Remuneration arrangements

should ensure reputational

and other risks from excessive

rewards, and behavioural risks

that can arise fromtarget-based

incentive plans, are identified

and mitigated.

The remuneration policy includes a number of points to mitigate

potential risks:

• There are defined limits on the maximum opportunity levels

under incentive plans.

• Performance targets are calibrated appropriately, ensuring

they are adequately stretching but sustainable.

• The Remuneration Committee considers formulaic incentive

outcomes and determines whether to make any adjustments,

including to take into account the experience of wider

stakeholders such as employees andshareholders.

• Incentive plans include provisions to allow malus and claw back

to be applied, where appropriate. The use of deferral, holding

periods, in-employment and post-employment shareholding

requirements ensures that there is an alignment of interests

between the CEO and shareholders and encourages

sustainable performance.

Predictability

The range of possible values

of rewards to individual

Directors and any other limits or

discretions should be identified

and explained atthe time of

approving policy.

We aim for our disclosure to be clear to allow shareholders to

understand the range of potential values which may be earned under

the remuneration arrangements. Our remuneration policy clearly

sets out relevant limits and potential for discretion.

Attracting

Finding the people we want

and need

Recognising

Adopting behaviours

that produce exceptional

performance

Motivating

Achieving business, financial

and non-financial targets

Retaining

Continuing to attract the

besttalent

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Directors’ remuneration report continued

Proportionality

The link between individual

awards, delivery ofstrategy

and long-term performance of

the Company should be clear.

Outcomes should not reward

poor performance.

We believe that the link between individual awards, the delivery

of strategy and the long-term performance of the Company

is clearly explained in this report and that our approach

ensures proportionate pay outcomes that do not reward poor

performance. A significant part of the CEO’s reward is linked

to performance with a clear line of sight between business

performance and the delivery of shareholder value. The

Remuneration Committee may adjust formulaic outcomes of

incentive arrangements if they do not appropriately align with

performance achieved or the experience of wider stakeholders

such as employees and shareholders.

Alignment to culture

Incentive schemes should

drive behaviours consistent

with Company purpose, values

andstrategy.

We want our Executives to make decisions that support the

long-term performance and health of the business. The incentive

arrangements and the performance measures used are strongly

aligned to those that the Board considers when determining the

success of the implementation ofthe Company’s purpose, values

and strategy.

How we implement our reward strategy

The chart below illustrates how we put our reward strategy into practice, with the different remuneration arrangements that apply to different employee groups.

We regularly review our reward strategy to ensure it remains relevant and effective in meeting the needs of our employees, especially our frontline workers. During 2023 we provided higher increases

toourfront line workers in comparison to other employees.

Chief Executive Officer and

Executive Leadership Team

Chief Executive Officer,

Executive Leadership Team and

selected senior management

Selected middle and senior

management

All management All employees

Shareholding guidelines

Support the alignment with

shareholder interests ensuring

sustainable performance: CEO

– required to hold shares in the

Company equal in value to 300% of

annual base salary within a five-year

period and a post-employment

shareholding requirement that

applies for two years post-leaving.

ELT –required to hold shares in the

Company equal in value to 100%

ofannual base salary within a five-

year period.

Performance Share Plan

Performance share awards

vestover three years. PSP

awardsare cascaded down

to select senior managers,

promotinga focus on long-term

performance andaligning them

toshareholders’ interests,

Long-Term Incentive Plan

Long-term incentive awards vest

over three years. LTIP awards are

cascaded down to select middle

and senior management to

reinforce long-term performance

and ensure retention of our talents.

Management Incentive Plan

Employees may be eligible

toreceive an award under

theannual bonus scheme that

promotes a high-performance

culture. Performance conditions

are bespoke to each role and

businessunit.

Employee Share Purchase Plan

(dependent on country practice)

The Employee Share Purchase

Plan (ESPP) encourages share

ownership and aligns the interests

of our employees with those

ofshareholders.

Fixed pay and benefits

(basesalary, retirement

andother benefits - dependent

oncountry practice)

Base salaries may reflect the

market value of each role as well

asthe individual’s performance

andpotential. Retirement and

otherbenefits are subject to local

market practice.

Note: Participants in the PSP are not eligible to participate in the LTIP.

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Directors’ remuneration report continued

Remuneration arrangements for the CEO – at a glance

Year 1 Year 2 Year 3 Year 4 Year 5

Fixed pay – base salary

The base salary of the CEO is €892,900.

2024 salary increase levels for employees have not been finalized

at the date of this report. It is anticipated that the Chief Executive

Officer’s increase will not be higher than the increases provided for

the wider workforce and will be effective from 1 May 2024.

Fixed pay – retirement benefits

The CEO participates in a defined benefit pension plan under Swiss law.

Employer contributions are 15% of annual base salary.

Normal retirement age for the Chief Executive Officer’s plan is 65

years. In case of early retirement, which is possible from the age of 58,

the Chief Executive Officer is entitled to receive the amount accrued

under the plan as a lump sum.

Fixed pay – other benefits

Other benefits include (but are not limited to) medical insurance,

housing allowance, company car/allowance, cost of living adjustment,

trip allowance, partner allowance, exchange rate protection, tax

equalization and tax filing support and advice. Benefit levels vary each

year depending on need.

Fixed pay – ESPP

The CEO may participate in the Company’s ESPP.

As a scheme participant, the CEO has the opportunity to invest

a portion of his base salary and/or MIP payments in shares. The

Company matches employee contributions on a one-to-one basis up

to 3% of base salary and/or MIP payout.

Awards are subject to potential application of malus and

clawbackprovisions.

Base salary Other benefits MIP

Retirement

benefits

ESPP PSP

Total

compensation

+ =

Fixed pay Variable pay subject to performance

The table below summarises the remuneration arrangements in place for our CEO. See page 177 for total compensation figures.

Year 1 Year 2 Year 3 Year 4 Year 5

Variable pay – MIP

The MIP consists of a maximum annual bonus opportunity of up to

140% of base salary.

Payout is based on business performance targets and individual

performance. The business performance element will result in an

outcome between 0% and 200% of the target MIP and the individual

performance element will result in an outcome of up to 100%, with

the overall payout as a percentage of salary being based on the

multiplication of these two figures.

For 2024, business performance will be measured based on

performance against three KPIs: revenue (40% weighting),

comparable EBIT (40% weighting) and free cash flow (20% weighting).

50% of any MIP payout will be deferred into shares for a further

three-year period. Payments are subject to potential application

ofmalus and clawback provisions.

Variable pay – PSP

The PSP is an annual share award which vests after three years. For

2024 the CEO will be granted an award of 330% of salary. For the

award in 2024, vesting will be based on performance conditions

measured over a three-year period against:

i. comparable EPS (42.5% weighting);

ii. ROIC (42.5% weighting);

iii. reduction of CO

emissions (15% weighting).

An additional two-year holding period will apply following vesting.

Awards are subject to potential application of malus and

clawbackprovisions.

Shareholding guidelines

The shareholding guidelines support the alignment with shareholders.

The CEO’s minimum shareholding guideline is set at 300% of

annual base salary within a five-year period and a post-employment

shareholding requirement that applies for two years post-leaving.

50% cash 50% shares deferred

forthreeyears

Three year performance period

Minimum shareholding requirements

Two year holding

period

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Directors’ remuneration report continued

Remuneration policy

Introduction

The following section (pages 166-169) sets out

our Directors’ remuneration policy as approved

byshareholders at the Annual General Meeting

on17 May 2023. No changes are being proposed

to the policy this year.

As a Swiss-incorporated company, we are not

required to put forward our remuneration policy

for a shareholder vote, 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 disclosure complies

withUKregulations, except where these

conflictwith Swiss law.

Policy table – Chief Executive Officer

The Company currently has a single Executive

Director, being the CEO.

Therefore, for simplicity, this section refers

onlyto the CEO. This remuneration policy would,

however, apply for any new Executive Director

role, in the event that one was created during

theterm of this remuneration policy.

In that case, references in this section to

theCEOshould be read as being toeach

ExecutiveDirector.

Fixed

Base salary Retirement benefits

Purpose and

link to strategy

To provide a fixed level of compensation appropriate to the requirements of the role of CEO

and to support the attraction and retention of the talent able to deliver the Group’s strategy.

To provide competitive, cost-effective post-retirement benefits.

Operation Salary is reviewed annually, with salary changes normally effective on 1 May each year. The

following parameters are considered when reviewing the base salary level:

• the CEO’s performance, skills and responsibilities;

• economic conditions and performance trends;

• experience of the CEO;

• pay increases for other employees; and

• external comparisons based on factors such as: the industry of the business, revenue,

market capitalisation, headcount, geographical footprint, stock exchange listing (FTSE)

and other European companies.

Malus and clawback provisions do not apply to base salary.

The CEO participates in a defined benefit pension plan. However, we have adjusted the

pension scheme to be co-contributory, in line with the pension scheme for the wider Swiss

workforce, for new Executive Directors’ appointments from 2020 onwards.

Normal retirement age for the CEO’s plan is 65 years. In case of early retirement, which is

possible from the age of 58, the CEO is entitled to receive the amount accrued under the

plan as a lump sum.

Malus and clawback provisions do not apply to retirement benefits.

Maximum

opportunity

Whilst there is no maximum salary level, any increases awarded to the CEO will normally be

broadly aligned with the broader employeepopulation.

The salary increase made to the CEO may exceed the average salary increase under certain

circumstances at the Remuneration Committee’s discretion. These circumstances may

include: business and individual performance; material changes to the business; internal

promotions; accrual of experience; changes to the role; or other material factors.

The contributions to the pension plan are calculated as a percentage of annual base salary

(excluding any incentive payments or other allowance/benefits provided) based on age

brackets as defined by Federal Swiss legislation.

This percentage is currently 15% of base salary and increases to 18% above age 55.

Performance

metrics

Individual and business performance are key factors when determining any base salary

changes. The annual base salary for the Chief Executive Officer is set out on page 165.

None.

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Directors’ remuneration report continued

Fixed continued

Other benefits ESPP

Purpose and

link to strategy

To provide benefits to the CEO which are consistent with marketpractice. The ESPP is an Employee Share Purchase Plan, encouraging broader share ownership,

and is intended to align the interests of employees including the CEO with those of

theshareholders.

Operation Benefit provisions are reviewed by the Remuneration Committee which has the discretion

to recommend the introduction of additional benefits where appropriate.

Typical provisions for the CEO include benefits related to relocation such as housing

allowance, company car/allowance, cost of living adjustment, trip allowance, partner

allowance, exchange rate protection, tax equalisation and tax filing support and advice.

Forall benefits, the Company will bear any income tax and social security contributions

arising from such payments.

Malus and clawback provisions do not apply to benefits.

This is a voluntary share purchase scheme across many of the Group’s countries. The CEO

as a scheme participant has the opportunity to invest from 1% to 15% of his base salary

and/or MIP payout to purchase the Company’s shares by contributing to the plan on a

monthly basis.

The Company matches the CEO’s contributions on a one-to-one basis up to 3% of the

employee’s base salary and/or MIP payout. Matching contributions are used to purchase

shares one year after the purchase of shares byemployees. Matching shares are

immediately vested.

Dividends received in respect of shares held under the ESPP are used to purchase

additional shares and are immediately vested. The CEO is eligibleto participate in the

ESPPoperated by the Company on the same basis asother employees.

Malus and clawback provisions apply. Further details may be found in the Additional notes

to the Executive Director’s remuneration policy table section on page 171.

Maximum

opportunity

There is no defined maximum as the cost to the Company of providing such benefits will

vary from year to year.

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 contributions

areused to purchase shares one year after the matching. Matching shares are

immediatelyvested.

Performance

metrics

None. The value is directly linked to the share price performance. It is therefore not affected by

other performance criteria.

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Directors’ remuneration report continued

Variable pay

MIP

Purpose and

link to strategy

To support profitable growth and reward annually for contribution to business

performance. The plan aims to promote a high-performance culture with stretching

business and individual targets linked to our key strategies.

Maximum

opportunity

The CEO’s maximum MIP opportunity is set at 140% of annual base salary. The

business performance element will result in an outcome between 0% and 200%

of the target MIP and the individual performance element will result in an outcome

of up to 100%, with the overall payout as a percentage of salary being based on

the multiplication of these two figures.

Threshold, target and maximum achievement for the business performance

element will result in an outcome as follows:

• Threshold: 0% of base salary

• Target: 70% of base salary

• Maximum: 140% of base salary

• The maximum opportunity level will therefore only pay out for both a

stretch level of business performance and full achievement of the individual

performance element

Operation Annual cash bonus awarded under the MIP is subject to business and individual

performance metrics and is non-pensionable.

The CEO’s individual objectives are regularly reviewed to ensure relevance

to business strategy and are set and approved annually by the Chair of the

Remuneration Committee and Chairman of the Board of Directors.

Stretching targets for business performance are set annually, based

onthebusiness plan of the Group as approved by the Board of Directors.

TheRemuneration Committee will determine the business performance

metricsand weightings on an annual basis.

Performance against these targets and bonus outcomes is assessed by the

Remuneration Committee, which may recommend an adjustment to the payout

level where it considers the overall performance of the Company or the individual’s

contribution warrants a higher or lower outcome.

Malus and clawback provisions apply. Further details may be found in the

Additional notes to the Executive Director’s remuneration policy table section

onpage 171.

Performance

metrics

The MIP awards are based on business metrics linked to our business strategy.

These may include, but are not limited to, measures of revenue, profit, profit

margins and operating efficiencies. The weighting of individual performance

metrics shall be determined by the Remuneration Committee around

thebeginning of the MIP performance period.

Details related to the key performance indicators can be found inthe Annual

Report on Remuneration on page 177.

Deferral of MIP 50% of any MIP award is to be deferred into shares which will be made available after

a three-year deferral period which commences on the first day of the fiscal year in

which the deferred share awardis made.

Deferred shares may be subject to malus and clawback (for a period of two

years following this incentive award) to the extent deemed appropriate by the

Remuneration Committee, in line with bestpractice.

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Directors’ remuneration report continued

Variable pay continued

PSP

Purpose and

link to strategy

To align the CEO’s interests with the interests of shareholders, andincrease the

ability of the Group to attract and reward individuals with exceptionalskills.

Holding

period

Any vested award (net of shares sold to cover tax liability) is subject to a further

two-year holding period following the end of the three-year performance period.

During this two-year period, these beneficially owned shares are subject to a

no-sale commitment. Any shares subject to the holding period count towards

theshareholding requirement.

Operation The CEO is granted conditional awards of shares which vest after three years,

subject to the achievement of performance metrics and continued service.

Grants take place annually, normally every March.

Performance metrics and the associated targets are reviewed and determined

around the beginning of each performance period to ensure that they support the

long-term strategy and objectives of the Group and are aligned with shareholders’

interests. Dividends may be paid on vested shares where the performance metrics

are achieved at the end of the three-year period.

Malus and clawback provisions apply. Further details may be found in the Additional

notes to the Executive Director’s remuneration policy table section on page 171.

Adjustments In the event of an equity restructuring, the Remuneration Committee may make

an equitable adjustment to the terms of the performance 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.

Where exceptional circumstances exist such that the original targets no longer

meet the intent at the time of grant, the Committee will have the discretion to adjust

targets in a manner that is considered to be no less stretching than the original

performance condition. Where any such adjustment is made, the details will be fully

disclosed in the following remuneration report.

Maximum

opportunity

Awards (normally) have a face value up to 330% of base salary.

In exceptional circumstances only, the Remuneration Committee

hasthediscretion to grant awards up to 450% of base salary.

Change of

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

Committee determines that the performance metrics have been satisfied or

would have been likely to be satisfied at the end of the performance period, unless

the Remuneration Committee determines that substitute performance share

awards may be used inplace of the previous awards. For vested shares subject to

the additional holding period, the holding period will lapse and the participants are

no longer subject to the no-sale commitment.

Performance

metrics

Vesting of awards is subject to the three-year Group performance metrics. For

each award, the Remuneration Committee will determine the applicable metrics,

weightings and target calibration making up the performance condition.

Following the end of the three-year period, the Remuneration Committee will

determine the extent to which performance metrics have been met and, in turn,

the level of vesting. Participants may receive vested awards in the form of shares

ora cash equivalent.

For each performance metric, achieving threshold performance results in vesting

of 25% of the award and maximum performance results in vesting of 100% of the

award. There will be a straight-line vesting between these performance levels.

Performance share awards will lapse if the Remuneration Committee determines that

the performance metrics have not been met. The Remuneration Committee will have

discretion to reduce or negate PSP award vesting, in the case of significant adverse

environmental, social or governance impacts regarding the Company’s activities.

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Maximum

performance +50%

share price growth

Maximum

Target

Minimum

11%

10% 17% 40%

7,440

5,966

4,786

1,732

16% 12%

19% 15%

51% 41%

21%

13%

49%

50%

20%

Base salary

PSP

PSP – share price appreciation

Cash and non-cash benefits

Pension MIP

0 2,000 4,000 6,000 8,000

10,000

Directors’ remuneration report continued

Additional notes to the Executive Director’s remuneration policy table

Chief Executive Officer’s remuneration policy illustration

The graph below provides estimates of the potential reward opportunity for the CEO andthe split between

the different elements of remuneration under three different performance scenarios: ‘Minimum’,

‘Target’ and ‘Maximum’. In line with the reporting regulations, a scenario assuming 50% share price

growth over the three-year PSP performance period is also shown below.Theassumptions used for

these charts are set out in the table below (€ 000s).

Minimum performance Fixed remuneration only, i.e. base salary, pension and other benefits

(including ESPP participation)

No payout under the MIP or PSP

Target performance Fixed remuneration

MIP payout of 70% of base salary

PSP vesting at 198% of base salary

Maximum performance Fixed remuneration

MIP payout of 140% of base salary

PSP vesting at 330% of base salary

Maximum performance+ 50%

share price growth

Fixed remuneration

MIP payout of 140% of base salary

PSP vesting at 330% of base salary

50% assumed share price growth over three-year PSP

performanceperiod

Other than in the ‘Maximum performance + 50% share price growth’ scenario, no share price growth or

dividend assumptions have been included in the charts above.

Component

Minimum

(€ 000s)

Target

(€ 000s)

Maximum

(€ 000s)

Maximum

performance

+ 50% share

price growth

(€ 000s)

Fixed Base salary

893 893 893 893

Pension 134 134 134 134

Cash and non-cash benefits

705 723 742 742

Variable MIP – 625 1,250 1,250

PSP – 2,411 2,947 2,947

PSP – 50% share price

Appreciation – – – 1,474

Total 1,732 4,786 5,966 7,440

1. Represents the annual base salary as at the last review in May 2023.

2. ESPP employer contributions may vary depending on the MIP payout provided that the CEO decides to contribute a portion of the MIP

towards the ESPP. The figures provided have been calculated on the basis of the applicable MIP payout and the CEO deciding to contribute

3% to the ESPP.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 170

Directors’ remuneration report continued

Employee Stock Option Plan (ESOP)

The ESOP was replaced by the PSP in 2015 and

the last grant under the ESOP took place in

December 2014. Although the Remuneration

Committee does not intend to award under the

ESOP going forward, there are still outstanding

stock option awards which may be exercised in

future years. Awards vest in one third increments

each year for three years and can be exercised for

up to ten years from the date of the award.

Malus and clawback provision for variable

payplans

The MIP, PSP, ESOP and ESPP plans include

malus provisions which give the Remuneration

Committee and/or the Board discretion to judge

that an award should lapse wholly or partly in event

of a material misstatement of financial results

and/or misconduct, significant reputational risk

and corporate failure.

The Remuneration Committee and/or Board also

has the discretion to determine that clawback

should be applied to awards under the MIP, PSP,

ESOP and ESPP plans for the CEO and members

of the ELT. Clawback can potentially be applied to

payments or vested awards for up to a two-year

period following payment or vesting.

Shareholding guidelines

In order to strengthen the link with shareholders’

interests, the CEO is required to hold shares in

theCompany equal in value to 300% of annual

base salary. Members of the ELT are required

tohold 100% of annual base salary. The CEO

hasfive years from appointment to accumulate

shares equal to 300% of annual base salary

(withshares acquired from PSP awards and

sharesresulting from the deferral of the 50%

of the MIP counting towards fulfilment of the

shareholding requirement).

The Committee continues to review the potential

need for stronger shareholding requirements in

the long term and this is subject to further review

in the future.

The Policy contains a post-employment

shareholding requirement whereby the CEO

would, if leaving the Company, be required to

hold shares equivalent to 200% of base salary

(oractual shareholding at termination date if

lowerthan this) for a period of two years after

leaving employment.

Remuneration arrangements across theGroup

The remuneration approach for the CEO, the

members of the ELT and senior management

is similar. The CEO’s total remuneration has a

significantly higher proportion of variable pay

incomparison with the rest of our employees.

TheCEO’s remuneration will increase or decrease

in line with business performance, aligning it with

shareholders’ interests.

The structure of the remuneration package

for the wider employee population takes into

account local market practice and is intended to

attract and retain the right talent, be competitive

and remunerate employees for promoting a

growth mindset while contributing to the Group’s

performance. As part of the Performance for

Growth framework introduced in 2019, we revised

and updated the remuneration framework with

features such as each business unit having more

flexibility on target positioning, managers having

the flexibility to retain key talent, and guidance

provided for increased awards for high-potential

and/or exceptional performance.

Policy table – non-Executive Directors

Base fees

Purpose and

link to strategy

To provide a fixed level of compensation appropriate to the requirements of

the role of non-Executive Director and to attract and retain high-quality non-

Executive Directors with the right talent, values and skills necessary to provide

oversight and support to management to grow the business, support the

Company’s strategic framework and maximise shareholder value.

Operation Non-Executive Directors’ fees are set at a level that will not call into question

the objectivity of the Board. When considering market levels, comparable

companies typically include those in the FTSE index with similar positioning as

the Company, other Swiss companies with similar market capitalisation and/or

revenues, and other relevant European listed companies.

Maximum

opportunity

Fee levels for non-Executive Directors include an annual fixed fee plus additional

fees for membership of Board committees when applicable. The fees as at 1

January 2024 are set out below:

• Base Chairman’s fee: €150,000

• Base non-Executive Director’s fee: €82,000

• Senior Independent Director’s fee: €18,000

• Audit and Risk Committee Chair fee: €32,000

• Audit and Risk Committee member fee: €16,000

• Remuneration, Nomination and Social Responsibility Committee Chair

fees:€13,000

• Remuneration, Nomination and Social Responsibility Committee member

fees: €6,500

Fee levels are subject to periodic review and approval by the Chairman of the

Board and the CEO.

Other benefits Non-Executive Directors do not receive any benefits in cash or in kind. They

are not entitled to severance 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.

Variable

remuneration

Non-Executive Directors do not receive any form of variable compensation.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 171

Directors’ remuneration report continued

Legacy arrangements

For the avoidance of doubt, it is noted that

the Company will honour any commitments

entered into that have previously been disclosed

toshareholders.

Policy on recruitment/appointment

Executive Directors

Annual base salary arrangements for the

appointment of an Executive Director will be set

considering market relevance, skills, experience,

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 the following years. As highlighted

above, annual base salary ‘gaps’ may result in

higher rates of salary increase in the short term,

subject to an individual’s performance. The

discretion is retained to offer an annual base salary

necessary to meet the individual circumstances

ofthe recruited Executive Director and to enable

the hiring of an individual with the necessary skills

and expertise.

The maximum level of variable pay that may be

offered will follow the rules of the MIP and is capped

at 140% of the relevant individual’s annual base

salary. The maximum level of equity-related pay

that may be offered will follow the PSP rules and

is capped at 450% of the relevant individual’s

annual base salary. The typical award is not

expected to surpass 330% of base salary. Different

performance measures may be set initially for the

annual bonus taking into consideration the point

in the financial year that a new Executive Director

joins. The above limits do not include the value of

any buyout arrangements.

Benefits will be provided in line with the Group’s

policy for other employees. If an Executive Director

is required to relocate, benefits may be provided as

per the Group’s international transfer policy which

may include transfer allowance, tax equalisation,

tax advice and support, and 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 the

appointment up to an equivalent value in shares

or in cash. In the case of a share award, the

Remuneration Committee may approve a grant of

shares under the 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.

It is expected that Executive Directors appointed

during the remuneration policy period will be

appointed on similar notice provisions to the CEO,

allowing for termination ofoffice by either party on

six months’ notice.

Non-Executive Directors

It is expected that non-Executive Directors

appointed during the remuneration policy period

will receive the same basic fee and, as appropriate,

committee fee or fees as existing non-Executive

Directors and will be entitled to reimbursement of

all reasonable expenses incurred in the interests

of the Group.

It is expected that non-Executive Directors

appointed during the remuneration policy

period will be appointed on a one-year term

ofappointment, in the same manner as existing

non-Executive Directors.

The Company does not compensate new non-

Executive Directors for any forfeited share awards

in previous employment.

Termination payments

The Swiss corporate law provisions regarding

the Compensations in Listed Companies limits

the authority of the Remuneration Committee

and the Board to determine compensation.

Limitations include the prohibition of 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 compensation. The

CEO’s employment contract does not contain any

provisions for payments ontermination.

Notice periods are set for up to six months and

non-compete clauses are 12 months. The notice

period anticipates that up to six months’ paid

garden leave may be provided. Similarly, up to 12

months of base salary may be paid out in relation

to the non-compete period.

In case of future terminations, payments will be

made in accordance with the termination policy

onpage 173.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 172

Directors’ remuneration report continued

Pay element

Good leaver (retirement at 55 or later/

at least 10 years’ continued service) Good leaver (injury, disability) Bad leaver (resignation, dismissal) Death in service

Base salary and other benefits/

non-Executive Directors’ fees

Payment in lieu of notice is not permissible. The Company could ask the Chief Executive Officer to be on paid garden leave for up to six months.

ESPP Unvested cash allocations held in the ESPP will vest upon termination. Unvested cash allocations under the

ESPP are forfeited.

Available ESPP shares will be transferred

to heirs.

MIP A pro-rated payout as of the date

ofretirement will be applied.

Deferred shares will continue to vest

asnormal.

A pro-rated payout as of the date

ofleaving will be applied.

Deferred shares will continue to vest

asnormal.

In the event of resignation or dismissal,

as per Swiss law the CEO is entitled to a

pro-rated MIPpayout.

Any outstanding deferred shares

willlapse.

A pro-rated payout will be applied and will

be paid immediately to heirs, based on

the latest rolling estimate.

Deferred shares will continue to vest

asnormal.

PSP/ESOP All unvested options and performance

share awards continue to vest as normal

subject to time pro-rating and are

subject to the additional holding period.

For vested shares that are subject to

the additional holding period, they will

continue to be subject to the no-sale

commitment until the end of the

relevant two-year period.

Under Swiss law, share awards are

considered annual compensation and

assuch when time pro-rating is required,

the year of grant (12 months) and not

thevesting period (36 months) for time

pro-rating calculations is considered.

All unvested options and performance

share awards immediately vest to

the extent that the Remuneration

Committee determines that the

performance conditions have been met,

or are likely to be met at the end of the

three-year performance period, and are

subject to the additional holding period.

Any options that vest are exercisable

within 12 months from the date

oftermination.

For vested shares that are subject to

the additional holding period, they will

continue to be subject to the no-sale

commitment until the end of the

relevant two-year period.

All unvested options and performance

share awards immediately lapse without

any compensation.

In the event of resignation, all vested

options must be exercised within six

months from the date of termination.

Upon dismissal, all vested options must

be exercised within 30 days from the

date of termination.

For vested shares that are subject to

the additional holding period, they will

continue to be subject to the no-sale

commitment until the end of the

relevant two-year period.

All unvested options and performance

share awards immediately vest subject

to time and performance pro-rating.

Any options that vest are exercisable within

12 months from the date of termination.

For vested shares that are subject to the

additional holding period, the no-sale

commitment will cease immediately.

Under Swiss law, share awards are

considered annual compensation.

When time pro-rating is required, the

year of grant (12 months) and not the

vesting period (36 months) is considered

for time pro-rating calculations.

Corporate events

In the event of an equity restructuring, theRemuneration Committee may make an

equitableadjustment to the terms of the performance share award by adjusting the numberand kind

of shares that 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 a change of control, unvested performance share awards held by participants vest

immediately on a pro-rated basis if the Remuneration Committee determines that the performance

conditions have been satisfied or would have been likely to be satisfied at the end ofthe performance

period, unless the Remuneration Committee determines that substitute performance share awards may

be usedin place of the previous awards.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 173

Directors’ remuneration report continued

Name Title

Date

originally

appointed to

the Board of

the Company

Date

appointed to

the Board of

the Company

Unexpired

term ofservice

contract or

appointment as

non-Executive

Director

Anastassis G. David Chairman and

Non-ExecutiveDirector

27 July 2006 17 May 2023 One year

Zoran Bogdanovic Chief Executive Officer 11 June 2018 17 May 2023 Indefinite,

terminable on six

months’ notice

Charlotte J. Boyle Non-Executive Director 20 June 2017 17 May 2023 One year

Henrique Braun Non-Executive Director 22 June 2021 17 May 2023 One year

Olusola (Sola) David-Borha Non-Executive Director 24 June 2015 17 May 2023 One year

Anna Diamantopoulou Non-Executive Director 16 June 2020 17 May 2023 One year

William W (Bill) Douglas III Non-Executive Director 21 June 2016 17 May 2023 One year

Reto Francioni Senior Independent

Non-Executive Director

21 June 2016 17 May 2023 One year

Anastasios I. Leventis Non-Executive Director 25 June 2014 17 May 2023 One year

Christo Leventis Non-Executive Director 25 June 2014 17 May 2023 One year

Alexandra Papalexopoulou Non-Executive Director 24 June 2015 17 May 2023 One year

George Leventis Non-Executive Director 17 May 2023 17 May 2023 One year

Evguenia Stoichkova Non-Executive Director 17 May 2023 17 May 2023 One year

The CEO’s service contract and the terms and

conditions of appointment of the non-Executive

Directors are available for inspection by the public

at the registered office of the Group.

Consideration of employee views

The remuneration structure has been designed

to apply to all Group employees, not just

the Executive Directors, which is a material

factor in defining and shaping the policy and

implementation of the policy.

The Remuneration Committee does not currently

consult specifically with employees on policy

for the remuneration of the Directors. Pay

movement for the wider employment group is

considered when making pay decisions for the

CEO. The Chair of the Remuneration Committee

is also the designated non-Executive Director

for workforce engagement. As such, she attends

meetings of our European Works Council and

meets with elected employee representatives

from our businesses in EU countries. She then

reports back to the Board on her observations

and matters raised by employees, ensuring Board

and Remuneration Committee deliberations

and decision-making are fully informed.

Ourengagement levels continue to remain

highat86%.

Consideration of shareholder views

Shareholder views and the achievement of

the Group’s 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

institutional investors to gather feedback on the

Company’s remuneration strategy and corporate

governance. The Company will continue to

engage with shareholders in the future to discuss

the outcomes of the remuneration policy.

In reviewing and determining remuneration,

theRemuneration Committee takes into account

the following:

• the business strategies and needs of the

Company;

• the views of shareholders on Group policies and

programmes of remuneration;

• the alignment of remuneration policy with the

principles of clarity, simplicity, risk, predictability,

proportionality and alignment with culture;

• market comparisons and the positioning of the

Group’s remuneration relative to other

• comparable companies;

• input from employees regarding our

remuneration programmes;

• the need for similar, performance-related

principles for the determination of executive

remuneration and the remuneration of other

employees; and

• the need for objectivity. Board members,

the CEO and ELT members play no part in

determining their own remuneration. The

Chair of the Remuneration Committee and the

CEO are not present when the Remuneration

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 for other employees in the organisation.

Service contracts

Zoran Bogdanovic, the CEO, has a service

contract with the Company with a six- month

notice period. As noted in the Termination

payments section on page 172, the CEO’s

employment contract does not include any

termination benefits, other than as mandated

bySwiss law.

The CEO is also entitled toreimbursement of all

reasonable expenses incurredin the interests of

the Company.

In accordance with the Swiss Code of Obligations,

there are no sign-on policies/provisions for the

appointment of the CEO.

The table below provides details of the current

service contracts and terms of appointment for

theCEO and other Directors.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 174

Directors’ remuneration report continued

Annual Report on Remuneration

Introduction

This section of the report provides detail on

how we have implemented our remuneration

policy in 2023 which, in accordance with the UK

remuneration reporting regulations and alongside

other sections of the Directors’ remuneration

report, will be subject to an advisory shareholder

vote at our 2024 Annual General Meeting.

The role of the Remuneration Committee

The main responsibilities of the Remuneration

Committee are to establish the remuneration

strategy for the Group and to approve

compensation packages for Directors and senior

management. Further, the Committee reviews

wider workforce remuneration policies at Coca-

Cola HBC and the alignment of incentives and

rewards with strategy and culture, taking these

into account when setting the remuneration

policy. The Remuneration Committee operates

under the Charter for the Committees of

the Board of the Company set forth in Annex

C totheOrganizational Regulations of the

Company, available on the Group’s website at:

https://www.coca-colahellenic.com/en/about-us/

corporate-governance.

Members Membership status

Charlotte J. Boyle

(Chair)

Member since 2017

Chair since June 2020

Reto Francioni Appointed June 2016

Anna Diamantopoulou Appointed June 2020

In accordance with the UK Corporate Governance

Code, the Remuneration Committee consists

of three independent non Executive Directors:

Charlotte J. Boyle (Chair), Reto Francioni and Anna

Diamantopoulou, who were each last elected by the

shareholders for a one-year term on 17 May 2023.

The Remuneration Committee met four times in

2023; in March, June, September, and December.

Please refer to the Corporate Governance Report

on page 140 for details of the Remuneration

Committee meetings.

Activities of the Remuneration Committee

during 2023

During 2023, the key Remuneration Committee

activities were to:

• undertake extensive shareholder consultation to

understand different views on our remuneration

approach and explain the Committee’s decisions;

• review and sign off the 2022 Directors’

remuneration report;

• review the 2023 base salary for the CEO;

• review and approve the 2023 base salaries

forthe ELT members and general managers;

• review and approve the 2022 MIP payout

fortheCEO;

• review and approve payout levels for the

2022MIP in relation to ELT members and

general managers;

• review and approve the performance

achievement of the 2020 PSP award, number

ofshares vesting and dividend equivalents;

• set and approve 2023 PSP targets;

• review award levels for 2023 PSP awards;

• review short- and long-term incentive

arrangements for the wider workforce;

• review the assets of the Company’s Irish

defined benefit pension plans;

• review pay evolution for the wider workforce,

including actions taken to deal with inflation.

Advisers to the Remuneration Committee

The Chief People and Culture Officer,

the Head ofRewards and the General

Counsel regularly attend meetings of the

RemunerationCommittee.

While the Remuneration Committee does not

have external advisers, in 2023 it authorised

management to work with external consultancy

firms Willis Towers Watson and Deloitte,

which provided independent advice on ad

hoc remuneration issues during the year.

These services are considered to have been

independent, objective and relevant to the

market. Other than employee engagement

benchmarking services, Willis Towers Watson

does not provide any other services to the

Company or to any individual Director, Deloitte

provides tax advisory and payroll services to

theCompany.

The total cost in connection with Willis Towers

Watson’s work was €37,702 and for Deloitte

€101,674, invoiced on a time spent basis. Willis

Towers Watson and Deloitte are members of

theRemuneration Consultants Group and provide

advice in line with its Code of Business Conduct.

Considering this, and the level and nature of the

service received, the Committee remains satisfied

that the advice is objective and independent.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 175

Directors’ remuneration report continued

Non-Executive Directors’ remuneration for the years ended 31 December 2023 and 2022

Financial

year

Base fee

(€)

Audit and Risk

Committee

(€)

Remuneration

Committee

(€)

Nomination

Committee

(€)

Social Responsibility

Committee

(€)

Senior

Independent Director

(€)

Social security

contributions

(€)

Total

(€)

Anastassis G. David FY2023 150.000 – – – – – – 150,000

FY2022 150,000 – – – – – – 150,000

Charlotte J. Boyle FY2023 82.000 – 13.000 6.500 – – – 101.500

FY2022 82,000 – 13,000 6,500 – – – 101,500

Henrique Braun FY2023 82,000 – – – – – 6,569 88,569

FY2022 82,000 – – – – – 6,586 88,586

Olusola (Sola) David-Borha FY2023 82.000 16.000 – – – – 7.850 105.850

FY2022 82,000 16,000 – – – – 7,871 105,871

Anna Diamantopoulou FY2023 82,000 – 6,500 6,500 6,500 – 6,199 107,699

FY2022 82,000 – 6,500 6,500 6,500 – 8,152 109,652

William W. (Bill) Douglas lll FY2023 82,000 32,000 – – – – – 114,000

FY2022 82,000 32,000 – – – – – 114,000

Reto Francioni FY2023 82,000 – 6,500 13,000 – 18,000 7,058 126,558

FY2022 82,000 – 6,500 13,000 – 18,000 7,123 126,623

Anastasios I. Leventis FY2023 82,000 – – – 13,000 – – 95,000

FY2022 82,000 – – – 13,000 – – 95,000

Christo Leventis FY2023 82,000 – – – – – – 82,000

FY2022 82,000 – – – – – – 82,000

Alexandra Papalexopoulou FY2023 82,000 16,000 – – – – – 98,000

FY2022 82,000 16,000 – – – – – 98,000

Bruno Pietracci

FY2023 31,033 – – – 2,460 – 2,683 36,176

FY2022 82,000 – – – 6,500 – 7,108 95,608

George Pavlos Leventis

FY2023 51,193 – – – – – – 51,193

FY2022 – – – – – – – –

Evguenia Stoichkova

FY2023 51,193 – – – 4,058 – – 55,251

FY2022 – – – – – – – –

Ryan Rudolph

FY2023 31,033 – – – – – 2,486 33,519

FY2022 82,000 – – – – – 6,586 88,586

1. Non-Executive Director fees for 2023 were in line with the fees that were revised in 2022.

2. Social security employer contributions as required by Swiss legislation.

3. Bruno Pietracci retired from the Board of Directors on 17 May 2023. The Group applied a pro-rated base fee from this date.

4. George Pavlos Leventis was appointed to the Board of Directors on 17 May 2023. The Group applied a pro-rated base fee from this date.

5. Evguenia Stoichkova was appointed to the Board of Directors on 17 May 2023. The Group applied a pro-rated base fee from this date.

6. Ryan Rudolph retired from the Board of Directors on 17 May 2023. The Group applied a pro-rated base fee from this date.

Non-Executive Directors do not participate in any of the Group’s incentive plans, nor do they receive any retirement or other taxable benefits. Fee levels in the table above were last reviewed in 2022.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 176

Directors’ remuneration report continued

Single figure table

Single total figure of remuneration for the CEO for the years ended 31 December 2023 and 2022.

Base pay

€ 000s

Cash and

non-cash benefits

€ 000s

Annual bonus

€ 000s

Employee Share

Purchase Plan

€ 000s

Long-term incentives

€ 000s

Retirement benefits

€ 000s

Total fixed remuneration

€ 000s

Total variable remuneration

€ 000s

Total single figure

€ 000s

2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022

Zoran

Bogdanovic 875 832 678 461 950 911 26 41 2,405 1,905 148 144 1,701 1,437 3,381 2,857 5,082 4,294

1. Base pay includes the monthly instalments linked to the base salary for 2023 and 2022.

2. Cash and non-cash benefits includes the value of all benefits paid during 2023. These are outlined in the ‘Cash and non-cash benefits’ section below and include any gross-ups for the tax benefits.

3. Annual bonus for 2023 includes the MIP payout, receivable early in 2024 for the 2023 performance year, including the amount deferred in shares. Refer to ‘MIP performance outcomes-2023’ for details.

4. ‘Employee Share Purchase Plan’ reflects the value of Company matching share contributions under the ESPP.

5. ‘Long-term incentives’ for 2023 reflects the 2021 awards made under the Performance Share Plan and the dividend equivalent shares paid on PSP shares that will vest in early 2024. The number of shares due to vest to the CEO for the 2021 award is 88,600.

TheCEO willalso get 7,243 shares representing the dividend equivalents for the awarded shares for 2021, 2022 and 2023. The value reflects the number of shares multiplied by the average market price over the last three months of the financial year.

The figure will be restated in next year’s report based on the share price at vesting (as has been done for the 2020 award in the 2022 figure above). €2,404,608 total vested value of the 2021 award was decreased by €262,412 due to decrease in share price since date of grant.

6. ‘Retirement benefits’ includes the pension plan under Swiss law. Employer contributions are 15% of annual base salary. The disclosed figure also includes risk and administration costs of €15,874

7. No malus and clawback was operated.

Fixed pay for 2023

Base salary

In 2023, Zoran Bogdanovic’s salary was increased

to €892,900, representing an increase of 6.3%

effective May 2023. The average increase for our

employees was 7.3%

Retirement benefits

Zoran Bogdanovic receives an annual retirement

benefit of 15% of base salary, aligning to the

retirement benefit provided under Swiss law

andbased on the age brackets defined by federal

Swiss legislation. During the year, €148,069 of

retirement benefit was received, inclusive of

€15,874 for risk and administration costs.

Normal retirement age for the CEO’s plan is 65

years. In case of early retirement, which is possible

from the age of 58, the CEO is entitled to receive

the amount accrued under the plan as a lump sum.

Cash and non-cash benefits

Zoran Bogdanovic received additional benefits

during 2023. These included cost of living and

foreign exchange rate adjustment (€382,122),

private medical insurance (€6,522), partner

allowance (€1,000), home trip allowance (€2,660),

taxsupport (€21,597), company car (€22,912),

housing allowance (€105,952), tax equalisation

(€-125,121), and the value ofsocial security

contributions (€260,246). Company matching

contribution related to the ESPP (€26,258 reflecting

the maximum match of3%under the plan).

Variable pay for 2023

MIP performance outcomes – 2023

The business performance element for the

2023MIP was based on the following metrics:

• NSR, with an opportunity of56%of salary

formaximum performance (28%of salary

fortargetperformance).

• Comparable EBIT, with an opportunity of

56%ofsalary for maximum performance

(28%of salary for target performance).

• Free cash flow, with an opportunity level

of28%of salary for maximum performance

(14%of salary for target performance).

The outcome of the business performance

element is multiplied by the outcome for the

individual performance element.

The CEO’s individual performance metrics were measured versus the following priorities in 2023:

Priorities Achievement

Business

performance

Increase volume Volume increased 4.6% versus2022

onareported basis and 1.7% on an

organicbasis

Increase organic revenue growth Organic revenue growth 16.9% increase

compared to prior year

Increase comparable EBIT Comparable EBIT 16.6% increase and

17.7%organic

Employee

engagement

Maintain or increase

employeeengagement

High sustainable engagement index score

of 86%

Sustainability

commitments

Reduction in CO

and increase energy

efficient coolers

Energy-efficient coolers up from 55% in

2023 versus 49% in 2022

Progress towards World Without Waste 56% primary packaging collected for

recycling versus 48% in 2022

Increase in number of women

inmanagement

Overall women in management increased

from 39.6% to 41.8%

Increase the number that have access

to#Youth Empowered

Over 944,948 young people from 2017 to

2023 have access to #Youth Empowered

access versus 790,000 in 2022

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 177

Directors’ remuneration report continued

The Remuneration Committee took into account the following additional achievements during 2023.

• Continued handling of the challenges posed by the Russia-Ukraine war and the humanitarian support

toUkraine during the war

• Number one contributor to absolute revenue growth for our retail customers within fast moving

consumer goods (FMCG) in Europe, according to Nielsen.

• Recognised in the DJSI as leading beverage company and top scores in S&P Global

SustainabilityYearbook.

Since the onset of the war in Ukraine, we have taken the decision to exclude Ukraine and Russia from

both the targets as well as the actuals in calculating the payout. In addition, Finlandia, which was

acquired in November 2023, was excluded from both the targets and actuals in calculating the payout.

In 2023, the comparable EBIT adjustment totalled €306.4 million (2022: €237.3 million), with the

increase principally driven by the performance improvement in Ukraine.

The CEO’s individual financial metrics were measured as follows:

Performance level (payout % of Target opportunity)

Threshold (0%) Target (100%) Maximum (200%) Achievement

Payout (% of base

salary)

Net sales revenue (€m) 7,843. 5 8,525.5 9,207.6 8,630.2 32.2%

Comparable EBIT (€m) 679.6 738.7 797.8 777.4 46.2%

Free cash flow (€m) 327.1 355.5 391.1 496.4 28.0%

Total (business performance multiplied by individual performance) 106.4%

Total (as a % of maximum) 76%

The Remuneration Committee considered the above formulaic outcome to ensure that it was both fair

and appropriate given the wider stakeholder experience described above and the wider performance

assessment as set out in the Remuneration Committee Chair’s letter earlier on in this report. The

annual bonus award in respect of the 2023 financial year for the CEO was therefore €950,046 and

106.4% of salary (76% of maximum). The Committee judged that this outcome was appropriate and

didnot apply a discretionary adjustment.

In accordance with the terms of the MIP, 50% of the award will be paid out in March 2024 and the remaining

50% will be deferred into shares for a period of three years, subject to continued employment.

PSP awards – 2023-25

The PSP is the Company’s primary long-term incentive vehicle. In March 2023, the CEO was granted

a performance share award of over 157,114 shares under the PSP, representing 450% of base salary at

date of grant.

The award is subject to a three-year performance period, aligned to the Company’s financial year, with

performance measured to the end of financial year 2025, and vesting anticipated in March 2026. These

vested shares will then be subject to a further two-year holding period, and the CEO agrees to a no-sale

commitment during this time.

The Committee was mindful of share price volatility at the time of grant and will retain the right

to appropriately apply discretion to the share award outcome at the time of vesting, if the level of

vesting and value delivered is not considered to be appropriate taking into account an assessment

ofperformance.

The following table sets out the details of the performance share award made to the CEO under the

PSP for 2023-25.

Type of award made

Performance share award over 157,114 shares

receivable for nil cost

Share price at date of grant €24.06 (£21.18)

Date of grant 17 March 2023

Performance period 1 January 2023 to 31 December 2025

Face value of the award

(The maximum number of shares that would vest

if allperformance measures and targets are met,

multiplied by the share price at the date of grant)

€3,780,163

Face value of the award as a % of annual basesalary 450%

Percentage that would be distributed if threshold

performance was achieved in all three PSP key

performanceindicators

25% of maximum award

Percentage that would be distributed if threshold

performance was achieved only in one PSP key

performance indicator

10.625% (EPS or ROIC)/3.75% (reduction in

emissions) of maximum award

Similar to the award made in March 2022, the 2023 award was subject to comparable EPS and ROIC and

reduction in CO

emissions targets, as outlined below and exclude Russia, Ukraine and Finlandia.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 178

Directors’ remuneration report continued

The financial measures are key measures of business performance. The reduction in greenhouse gas

emissions metric was selected to directly align with and incentivise delivery of the Company’s ESG

objectives, particularly our ambitious goal to achieve net zero emissions across our entire value chain

by 2040. The CO

emissions target in the PSP implicitly captures reduction in plastics, which was a key

driver of its selection as a metric. The measures and targets below were set out in the 2022 Directors’

remuneration report.

Threshold Maximum

Measure Description Weighting Target

Vesting

(% of max) Target

Vesting

(% of max)

Comparable EPS Calculated by dividing the

comparable net profit attributable

to the owners of the parent by

the weighted average number

ofoutstanding shares during

theperiod.

42.5% €1.40 25% €1.63 100%

ROIC ROIC is the percentage return that

a company makes on its invested

capital. More specifically, we

define ROIC as the percentage

ofcomparable net profit excluding

net finance costs divided by the

capital employed. Capital employed

is calculated as the average of

net debt and shareholders’ equity

attributable to the owners of the

parent through the year.

42.5% 11.0% 25% 12.9% 100%

Reduction in CO

emissions

This target supports the Company’s

ambitious goal to achieve net zero

emissions across its entire value

chain by 2040. 1.5 degree Celsius

scenarios approved by the SBTi and

calculated as thousand tonnes of

emissions equivalent.

15% 4,037 25% 3,851 100%

The vesting schedule for PSP performance conditions is a straight line between the threshold and

maximum performance levels.

PSP outcomes of the 2021-23 award

The table below summarises performance against the applicable targets for PSP awards made in 2021,

which are due to vest in March 2024.

Threshold Maximum Actual

Total %

of maxMeasure Weighting Target Vesting Target Vesting Achievement Vesting

Comparable EPS 42.5% €1.63 25% €1.89 100% €2.08 100%

94%

ROIC 42.5% 13.0% 25% 14.9% 100% 18.2% 100%

Reduction of CO2

emissions 15.0% 4,250 25% 4,020 100% 4,149 58%

Based on performance against the targets, the formulaic outcome was a vesting level of 94%.

The 2021 PSP award was granted at a higher share price than the 2020 PSP award therefore there are

no windfall gains associated with this award. In light of the external challenges facing the business, the

Committee believed that the financial outcomes achieved reflected strong performance and that the

vesting outcome was appropriate.

This was our first year where the plan also included reduction of CO

emissions as a third performance

metric. Following the notification from the third party (IFEU, an institute preferred by TCCC as the

source on material emissions factor change) and in line with GHG Protocol guidance, a re-calculation

of the base year 2017 onwards was triggered in 2023 and again in 2024. In 2023 the Net Zero roadmap

was re-calculated based on latest annual release of emissions factors with an increase in absolute

emissions by 250k MT and cascaded onwards. This also led to higher emissions decline rate year on

year. In early 2024, the Net Zero roadmap was re-calculated based on latest annual release of emissions

factors, which triggered an increase in absolute emissions base, starting 2017 by 95k MT and cascaded

onwards. Given the methodology change to the base year used for emissions data, which directly

impacts future years, the Committee considered it appropriate for this technical change to flow

through to the targets attached to the 2021 PSP award. In doing so, the Committee was comfortable

that the revised targets were not materially easier or harder to achieve than the original targets. It was

determined that no adjustment would be made to the formulaic outcome.

The above results include Russia and Ukraine but exclude Egypt as at the time that targets were set

inSeptember 2021.

Dilution limit

Usage of shares under all share plans and executive share plans adheres to the dilution limits set by the

Investment Association Principles of Remuneration (10% for all share plans and 5% for all executive

share plans, in any ten-year period).

Implementation of policy in 2024

For 2024, we will continue to apply the remuneration policy approved by shareholders in 2023,

asoutlined on pages 166 to 169.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 179

Base salary and fees

2024 salary increase levels for employees have not been finalised at the date of this report.

Itisanticipated that the CEO’s increase will not be higher than the increases provided for the

widerworkforce.

Chairman and Board fees effective June 2022 were approved during the 2022 AGM. The fees as at

1January 2024 are asfollows:

Non-Executive Directors’ fees

Current

fees

Chairman fee €150,000

Basic fee €82,000

Senior Independent Director €18,000

Audit and Risk Committee Chair €32,000

Audit and Risk Committee member €16,000

Remuneration/Nomination/Social Responsibility Committee Chair €13,000

Remuneration/Nomination/Social Responsibility Committee member €6,500

MIP

The MIP operates on a multiplicative basis. The outcome will be determined by business performance

multiplied by individual performance, which means that unless the business performance targets are

achieved no bonus will be payable.

Business performance is measured based on performance against three KPIs: revenue (40% weighting),

comparable EBIT (40% weighting) and free cash flow (20% weighting). Targets are considered to be

commercially sensitive but will be disclosed on a retrospective basis in next year’s remuneration report.

For target performance against this element the outcome will be 70%, rising to 140% for maximum

performance. For the CEO, individual performance will be assessed based on the achievement of defined

strategic objectives. Based on the Remuneration Committee’s assessment of performance against

these strategic objectives, the outcome for the individual performance element may be up to 100%.

The maximum opportunity level (which would reflect both a stretch level of business performance and

full achievement of the individual strategic objectives) for the CEO will be 140% of base salary, which is

unchanged from 2023.

PSP

The 2024 PSP award for the CEO will revert back to the normal policy maximum of 330% of salary. It

is intended that, as in past years, the three-year performance conditions applicable to the award will

continue to be based on ROIC and EPS as well as the reduction of CO

emissions metric, which was first

introduced in 2021.

Directors’ remuneration report continued

The weightings will be 42.5% for ROIC, 42.5% for EPS and 15% for reduction of CO

emissions. These

are unchanged from 2023.

The targets for the 2024 PSP award, exclude Russia and Ukraine, and take into account our business

plan, market expectations and the wider economic and geopolitical environment, and are as follows:

PSP 2024-26

Threshold Stretch

Measure Description Weighting Target

Vesting

(% of max) Target

Vesting

(% of max)

EPS Calculated by dividing the comparable

net profit attributable to the owners

of the parent by the weighted average

number ofoutstanding shares

during theperiod.

42.5% €1.53 25.00% €1.79 100%

ROIC ROIC is the percentage return that

a company makes on its invested

capital. More specifically, we

define ROIC as the percentage

ofcomparable net profit excluding

net finance costs divided by the

capital employed. Capital employed

is calculated as the average of

net debt and shareholders’ equity

attributable to the owners of the

parent through the year.

42.5% 11.1% 25.00% 13.1% 100%

Reduction in CO

emissions

This target supports the Company’s

ambitious goal to achieve net zero

emissions across its entire value

chain by 2040. Aligned with science

and 1.5 degree Celsius scenarios

and approved by the SBTi and

calculated as thousand tonnes of

emissions equivalent.

15.0% 2,986 25.00% 2,848 100%

The change in the ROIC targets relative to prior years reflects the level of invested capital at work within

the business, which has been impacted by strategic acquisitions (including the acquisition of Finlandia)

and recent share buybacks. The Committee believes that the proposed target range for ROIC and

the other performance metrics are appropriately stretching relative to the business plan and external

forecasts of performance.

The performance period for 2024 awards will be the three years to the end of December 2026 and

vesting will occur in March 2027. These vested shares will then be subject to a further two-year holding

period, and the CEO agrees to a no-sale commitment during this time.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 180

Annual percentage change in remuneration of Directors and employees

The following table sets out the percentage change in remuneration for each Director and average percentage change of employees on an annual basis.

Salary/fees Taxable benefits Annual bonus

2022 to 2023 % 2021 to 2022 % 2020 to 2021 % 2019 to 2020 % 2022 to 2023 % 2021 to 2022 % 2020 to 2021 % 2019 to 2020 % 2022 to 2023 % 2021 to 2022 % 2020 to 2021 % 2019 to 2020 %

All employees 7.29 4.39 4.59 0.00% 0.40 16.34 4.19 -18 .57% 11.86 96.50 -14.79 9.12%

Director

Anastassis G. David – 104.08 – – – – – – – –

Zoran Bogdanovic 6,30 3.10 3.20 0.00% 32.18¹ -36.53 24.25 34.63% -12. 22 155.21 -28.87 23.00%

Charlotte J. Boyle – 11.66 – – – – – – – – – –

Henrique Braun – 11.46 – – – – – – – – – –

Olusola (Sola)

David-Borha – 11.26 – – – – – – – – – –

Anna Diamantopoulou – 11.56 – – – – – – – – – –

William W. (Bill) Douglas lll – 11.33 – – – – – – – – – –

Reto Francioni – 11.96 – – – – – – – – – –

Anastasios I. Leventis – 11.63 – – – – – – – – – –

Christo Leventis – 11.56 – – – – – – – – – –

Alexandra Papalexopoulou – 11.36 – – – – – – – – – –

Bruno Pietracci

– 11.50 – – – – – – – – – –

Ryan Rudolph

– 11.46 – – – – – – – – – –

George Pavlos Leventis

– – – – – – – – – – – –

Evguenia Stoichkova

– – – – – – – – – – – –

1. The increase in taxable benefits for the CEO was due to negative tax equalisation in 2022.

2. George Pavlos Leventis and Evguenia Stoickova were elected as new Non-executive members of the Board of Directors as of 17 May 2023.

3. Bruno Pietracci and Ryan Rudolph retired from the Board of Directors on 17 May 2023.

Directors’ remuneration report continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 181

Directors’ remuneration report continued

CEO pay ratio

Coca-Cola HBC is domiciled in Switzerland. We are therefore not required to report a CEO pay ratio

under UK regulations; however, we are voluntarily disclosing ratios below. We have chosen to make

acomparison with employees in Switzerland as this is the market in which our CEO is based.

The international nature of our business means that we operate in countries with a significant range

interms of market practice for levels of remuneration and cost of living.

Switzerland, for example, has a substantially higher cost of living and employment remuneration

compared with other countries. For this reason, comparisons with our Swiss workforce are likely to be

more informative about the pay distribution of our workforce.

The table below compares the 2023 single figure of remuneration for the CEO with that of the employees

who are paid at the 25th percentile (lower quartile), 50th percentile (median) and 75th percentile (upper

quartile) of the Company’s workforce based in Switzerland, ranked based on total remuneration.

Year Method

25th percentile pay ratio

(P1)

Median pay ratio

(P2)

75th percentile pay ratio

(P3)

2023 Option A 56:1 44:1 35:1

2022 Option A 46:1 37:1 31:1

2021 Option A 65:1 52:1 42:1

2020 Option A 39:1 33:1 26:1

2019 Option A 33:1 29:1 23:1

Option A has been used as it is the most robust methodology and is based on a sample of full-time

Swiss employees as of 31 December 2023. Their pay and benefits is calculated, and every Swiss

employee is ranked to determine P25, P50 and P75. Several Swiss employees around each percentile

were identified to ensure that they accurately represent the relevant percentile ranking.

The methodology used to identify the lower quartile, median and upper quartile employees was to rank

all employees of the Swiss workforce on total remuneration (for employees who were in employment for

the full calendar year). Two employees around each percentile were identified to ensure they accurately

represent the relevant percentile ranking. The total remuneration for each of these employees was then

calculated consistent with the methodology applied for deriving the CEO’s single figure remuneration.

The table below sets out the total pay and benefits for the lower quartile, median and upper quartile:

25th percentile in € Median in € 75th percentile in €

Annual base salary 78,870 86,854 109,032

Total remuneration 93,090 118,932 151,097

Total remuneration of Swiss employees includes base salary, annual bonuses, other cash compensation

(e.g. overtime), other cash and non-cash benefits (e.g. company car, tax support, relocation etc.),

pension employer contributions and employer social security contributions during 2023.

We are satisfied that the pay ratios reported this year are consistent with our wider pay, reward and

progression policies for employees.

As described on page 163, we have an overall remuneration philosophy that operates throughout the

Group, ensuring that employees are fairly rewarded and that their individual contributions are linked

tothe success of the Company.

Variable pay is an important element of our reward philosophy and a significant proportion of total

remuneration for top managers (including the CEO) is tied to the achievement of our business

objectives. As employees advance through the Company, there will be the opportunity to receive

higher rewards commensurate with increased accountability and market practice. The CEO’s total

remuneration has a significantly higher proportion of variable pay in comparison with the rest of

our employees. The CEO’s remuneration will therefore increase or decrease in line with business

performance, aligning it with shareholders’ interests.

The change in the CEO Pay Ratio between 2022 and 2023 was mainly due to the substantial increase in

the cash and non-cash benefits and long-term incentives under the variable long-term incentive plan.

Chief Executive Officer pay and performance comparison

The graph below shows the total shareholder return (TSR) of the Company compared with the

FTSE100 index over a ten-year period to 31 December 2023, based on an initial investment of £100.

TheRemuneration Committee believes that the FTSE 100 Index is the most appropriate index to use

for historic performance due to the size of the Company and our listing location.

Total Shareholder Return versus FTSE 100

100

150

200

FTSE 100Coca-Cola HBC

Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 182

2023

2022

289.9 1,248.6

262.61,203.9

19%

Total staff costs Distribution to shareholders (total shares)

Relative importance of spend on pay (€m)

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 dividends, share buybacks and/or capital returns.

0 200 400 600 800 1,000 1,200 1,400 1,600

Directors’ remuneration report continued

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Dimitris Lois Dimitris Lois Dimitris Lois Dimitris Lois Zoran Bogdanovic Zoran Bogdanovic Zoran Bogdanovic Zoran Bogdanovic Zoran Bogdanovic Zoran Bogdanovic Zoran Bogdanovic

Total remuneration

– single figure (€ 000s) 1,918 3,012 2,923 15,378 410 3,710 2,499 3,340 4,203 4,294 5,082

MIP (% of maximum) 45% 75% 55% 53% 5% 48% 56% 40% 91% 78% 76%

PSP (% of maximum) – – – 90% – 100% 75% 50% 75% 48% 94%

Dimitris Lois sadly passed away on 2 October 2017. The 2017 total remuneration values above reflect the period 1 January 2017 to 2 October 2017. The total remuneration value for Zoran Bogdanovic reflects

the period from his appointment as CEO to the end of the financial year, 7 December 2017 to 31 December 2017.

Compared with the prior year, the total staff costs have increased by 3.7%, while dividends distributed

to shareholders have increased by 10.4%

Shareholder voting outcomes

The table below sets out the result of the vote on the remuneration-related resolutions at the Annual

General Meeting held in May 2023.

Resolution Votes for Votes against Abstentions Total votes cast

Voting rights

represented

Advisory vote on the UK

remuneration report

186,300,613 85,901.908 183,061 272,385,582 73.97%

68.39% 31.54% 0.07%

Advisory vote on the Swiss statutory

remuneration report

186,290,152 85,917,120 178,310 272,385,582 73.97%

68.39% 31.54% 0.07%

Advisory vote on the

remunerationpolicy

255,494,344 9,151,410 7,739,828 272,385,582 73.97%

93.80% 3.36% 2.84%

Approval of the maximum

aggregate amount of remuneration

for the Boarduntil the next

AnnualGeneralMeeting

272,010,889 336,994 37,699 272,347,883 73.97%

99.88% 0.12% n/a

Approval of the maximum

aggregateamount of remuneration

for the Executive Leadership Team

forthe next financial year

268,025,852 4,099,409 260,321 272.125,261 73.97%

98.49% 1.51% n/a

In reaction to the 68% in favour vote, the Committee decided to conduct an extensive shareholder

consultation, reaching out to many shareholders and engaging with all shareholders who expressed

concerns. Further detail is set out in the Remuneration Committee Chair’s letter. We value our ongoing

dialogue with shareholders and welcome any views on this report.

Payments to past Directors and payments for loss of office

There were no payments made to past Directors of the Group or loss of office payments made during

the year.

Payments to appointed Directors

There were no payments made to appointed Directors during the year.

Outside appointments for the CEO

Zoran Bogdanovic does not hold any appointments outside the Company.

Total Directors’ and Executive Leadership Team members’ remuneration

The table below outlines the aggregated total remuneration figures for Directors and ELT members in

the year.

2023

(€ m)

2022

(€ m)

Total remuneration paid to or accrued for Directors, the ELT and the CEO 30.6 28.3

Salaries and other short-term benefits 20.4 19.3

Amount accrued for performance share awards 9.3 8.0

Pension and post-employment benefits for Directors, the ELT and the CEO 0.9 1.0

Credits and loans granted to governing bodies

In 2023, no credits or loans were granted to active or former members of the Company’s Board,

members of the ELT or any related persons.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 183

Directors’ remuneration report continued

Share ownership

The table below summarises the total shareholding as at 31 December 2023, including any outstanding shares awarded through our incentive plans, for the CEO and other Directors.

With performance measures Without performance measures

PSP ESOP ESPP

interests

Performance

granted in

2023

Unvested and

subject to

performance

conditions Vested

Number of

stock options

outstanding

Fully

vested

Vesting at

the end of

2023

Number of

outstanding

shares held as at

31December 2023

Beneficially

owned

Current

shareholding

as % of

base salary

Shareholding

guideline met

Zoran Bogdanovic

Yes 162,847 391,872 75,777 39,335 39,335 – 74,157 336,219 1,000% Yes

Anastassis G. David

– – – – – – – – – –

Charlotte J. Boyle Yes – – – – – – – 1,017 – –

Henrique Braun – – – – – – – – – –

Olusola (Sola) David Borha – – – – – – – – – –

Anna Diamantopoulou – – – – – – – – – –

William W. (Bill) Douglas III Yes – – – – – – – 10,000 – –

Reto Francioni Yes – – – – – – – 7,000 – –

Anastasios I. Leventis

– – – – – – – – – –

Christo Leventis

– – – – – – – – – –

Alexandra Papalexopoulou – – – – – – – – – –

Bruno Pietracci – – – – – – – – – –

Ryan Rudolph – – – – – – – – – –

George Pavlos Leventis

– – – – – – – – – –

Evguenia Stoichkova – – – – – – – – – –

There were no changes in share ownership between 31 December 2023 and 13 March 2024 for the Directors except for Zoran Bogdanovic

1. The shareholding requirement was introduced from the date of the 2015 PSP award, 10 December 2015 and was updated to 300% in 2020.

2. During 2023, Zoran Bogdanovic exercised 93,408 options under the ESOP due to upcoming expiration consisting of: 30,000 options with an exercise price of GBP 16.00 and the share price at the date of the exercise being GBP 21.45, 35,000 options with an exercise price of GBP 12.56 and

the share price at the date of the exercise being GBP 22.30 and 28,408 options with an exercise price of GBP 16.00 and the share price at the date of the exercise being GBP 21.92. In February 2024, he exercised a further 39,335 options with an exercise price of GBP 12.56 and the share

price at the date of the exercise being GBP 25.00. As of 13 March 2024, Zoran Bogdanovic did not have any outstanding ESOP.

3. Anastassis G. David is a beneficiary of:

a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding; and

b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 832,268 shares held by Ari Holdings Limited.

4. Anastasios I. Leventis is a beneficiary of:

c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.

5. Christo Leventis is a beneficiary of:

6. George Pavlos Leventis is a beneficiary of:

(a) a private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 85,355,019 shares held by Kar-Tess Holding;

(b) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Anastasios George Leventis, that has an indirect interest with respect to 294,191 shares held by its trustee, Selene Treuhand AG; and

(c) a further private discretionary trust, for the primary benefit of present and future members of the family of the late Avgie Leventis, that has an indirect interest with respect to 2,138,277 shares held by Carlcan Holding Limited.

Approval of the Directors’ remuneration report

The Directors’ remuneration report set out on pages 159 to 184 was approved by the Board of Directors on 13 March 2024 and signed on its behalf by:

Charlotte J. Boyle

Chair of the Remuneration Committee

13 March 2024

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 184

Statement of Directors’ responsibilities

The Directors are responsible for preparing

the Integrated Annual Report, including the

consolidated financial statements, the Corporate

Governance Report including the Directors’

remuneration report and the Strategic Report,

inaccordance with applicable law and regulations.

The Directors, whose names and functions are set

out on pages 130 to 132, confirm to the best of

their knowledge that:

a) the Integrated Annual Report, taken as a whole,

is fair, balanced and understandable, and provides

the information necessary for shareholders to

assess the Group’s position and performance,

business model and strategy;

b) the consolidated financial statements,

which have been prepared in accordance with

International Financial Reporting Standards, as

adopted by the European Union and in compliance

with Swiss law, give a true and fair view of the

assets, liabilities, financial position and profit

or loss of the Company, and the undertakings

included in the consolidation of the Group taken

as a whole; and

c) the Integrated Annual Report includes a fair

review of the development and performance of

the business and the position of the Company

and the undertakings included in the consolidated

Coca-Cola HBC Group taken as a whole, together

with a description of the principal risks and

uncertainties that they face.

The activities of the Group, together with the

factors likely to affect its future development,

performance, financial position, cash flows,

liquidity position and borrowing facilities, are

described in the Strategic Report (pages 1 to 122).

In addition, Notes 25 ‘Financial risk management

and financial instruments’, 26 ‘Net debt’ and

27 ‘Equity’ include: the Company’s objectives,

policies and processes for managing its capital;

its financial risk management objectives; details

of its financial instruments and hedging activities;

and its exposures to credit risk and liquidity risk.

The Group has considerable financial resources,

together with long-term contracts with a number

of customers and suppliers across different

countries. The Directors have also assessed the

principal risks and the other matters discussed

inconnection with the viability statement on

page113.

The Directors considered it appropriate to adopt

the going concern basis of accounting in preparing

the annual financial statements and have not

identified any material uncertainties to the

Group’s ability to continue to do so over a period

of at least 12 months from the date of approval

ofthese financial statements.

By order of the Board

Anastassis G. David

Chairman of the Board

March 2024

Disclosure of information required under Listing Rule 9.8.4R

For the purposes of Listing Rule 9.8.4CR, the information required to be disclosed by premium listed

companies in the United Kingdom is as follows:

Listing

Rule

Information to

be included

Reference

in report

9.8.4(1) Interest capitalised by the Group and an indication of the amount

and treatment of any associated tax relief

Not applicable

9.8.4(2) Details of any unaudited financial information required by LR 9.2.18 Not applicable

9.8.4(4) Details of any long-term incentive scheme described in LR 9.4.3 Not applicable

9.8.4(5) Details of any arrangement under which a Director has waived

anyemoluments

Not applicable

9.8.4(6) Details of any arrangement under which a Director has agreed

towaive future emoluments

Not applicable

9.8.4(7) Details of any allotments of shares by the Company for cash not

previously authorised by shareholders

Not applicable

9.8.4(8) Details of any allotments of shares for cash by a major subsidiary

ofthe Company

Not applicable

9.8.4(9) Details of the participation by the Company in any placing made

byits parent company

Not applicable

9.8.4(10) Details of any contracts of significance involving a Director Not applicable

9.8.4(11) Details of any contract for the provision of services to the

Companyby a controlling shareholder

Not applicable

9.8.4(12) Details of any arrangement under which a shareholder has waived

oragreed to waive any dividends

Not applicable

9.8.4(13) Details of any arrangement under which a shareholder has agreed

towaive future dividends

Not applicable

9.8.4(14) Agreements with a controlling shareholder Not applicable

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 185

Report on the audit of the consolidated financial statements

Opinion

In our opinion:

• Coca-Cola HBC AG’s (‘Coca-Cola HBC’ or the ‘Group’) consolidated financial statements (the

‘financial statements’) give a true and fair view of the state of the Group’s affairs as at 31 December

2023 and of its profit and cash flows for the year then ended; and

• the financial statements have been properly prepared in accordance with International Financial

Reporting Standards (‘IFRSs’) as adopted by the European Union (‘EU’).

We have audited the financial statements, included within the 2023 Integrated Annual Report

(the ‘Annual Report’), which comprise: the consolidated balance sheet as at 31 December 2023;

the consolidated income statement, the consolidated statement of comprehensive income, the

consolidated cash flow statement, and the consolidated statement of changes in equity for the

year then ended; and the notes to the financial statements, comprising material accounting policy

information and other explanatory information.

Our opinion is consistent with our reporting to the Audit & Risk Committee.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing issued by the

International Auditing and Assurance Standards Board (‘ISAs’). Our responsibilities under ISAs are

further described in the Auditor’s responsibilities for the audit of the financial statements section of our

report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

Independence

We remained independent of the Group in accordance with the ethical requirements that are relevant

to our audit of the financial statements, which include the International Code of Ethics for Professional

Accountants (including International Independence Standards) issued by the International Ethics

Standards Board for Accountants (‘IESBA Code’), and the FRC’s Ethical Standard, as applicable to listed

entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, we declare that non-audit services prohibited by the IESBA Code

or the FRC’s Ethical Standard were not provided to the Group.

Other than those disclosed in Note 9 ‘Operating expenses’ of the financial statements, we have

provided no non-audit services to the Group in the period from 1 January 2023 to 31 December 2023.

Our audit approach

Overview

Audit scope • Following our assessment of the risks of material misstatement of the financial

statements, we performed full scope audit procedures on the financial

information of 17 subsidiary undertakings in 15 countries spread across all of

the Group’s reportable segments.

• In addition, we conducted audit procedures around specific account balances

and transactions including those covering the group treasury operations. The

group engagement team also performed group level analytical procedures

over out of scope subsidiary undertakings.

• Taken together, the undertakings which were in scope for the purpose of

our audit accounted for 82% of consolidated net sales revenue, 80% of

consolidated profit before tax and 83% of consolidated total assets of the

Group.

• Central audit testing was performed where appropriate for reporting

components in group audit scope that are supported by the Group’s shared

services centres.

• As part of the group audit supervision process, the group engagement

team has performed reviews of the component auditors’ audit files and final

deliverables. In person site visits to component auditors in Bulgaria, Greece,

Italy, Poland, Romania, Serbia and Switzerland were also performed.

Key audit matters • Goodwill and indefinite-lived intangible assets impairment assessment.

• Uncertain tax positions.

Materiality • Overall materiality: €51.0 million based on 5% of adjusted profit before tax

(2022: €41.1 million based on 5% of adjusted profit before tax).

• Performance materiality: €38.3 million (2022: €30.8 million)

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material

misstatement in the financial statements.

Independent auditor’s report to Coca-Cola HBC AG

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 186

Key audit matters

We attended each of the eight Audit & Risk Committee meetings held during the year. Certain

meetings involved a private discussion without management being present. We also met with the

Chair of the Audit & Risk Committee on an ad-hoc basis. During these various conversations we

discussed our observations on a variety of matters, for example the methodology and assumptions

used in the Group’s impairment assessment over goodwill and indefinite-lived intangible assets, the

judgements taken by management in assessing the risk of potentially material tax exposures, business

combinations, the accounting implications of the ongoing challenging macroeconomic conditions, and

regulatory developments. In September and December 2023, the Audit & Risk Committee discussed

and challenged the audit plan. The plan included the matters which we considered presented the

highest risk to the audit, including the key audit matters as set out below, and other information on

our audit approach such as our approach to specific balances and transactions and where the latest

technology would be used to obtain better quality audit evidence.

Key audit matters are those matters that, in the auditor’s professional judgement, were of most

significance in the audit of the financial statements of the current year and include the most significant

assessed risks of material misstatement (whether or not due to fraud) identified by the auditors,

including those which had the greatest effect on: the overall audit strategy; the allocation of resources

in the audit; and directing the efforts of the engagement team. These matters, and any comments

we make on the results of our procedures thereon, were addressed in the context of our audit of the

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate

opinion on these matters. This is not a complete list of all risks identified by our audit.

The areas of highest risk for the Group audit and where we focused most effort and resources were

‘Goodwill and indefinite-lived intangible assets impairment assessment’ and ‘Uncertain tax positions’.

These areas are common with other international beverages companies.

‘Geopolitical events in Russia and Ukraine’, which was a key audit matter last year, continued to be an

area of focus in light of the uncertainty over the macroeconomic and business environment, liquidity

and asset values in the wider affected region. Having evaluated the developments in 2023 and to the

date of this audit report, as well as the level of audit effort required, we assessed that ‘Geopolitical

events in Russia and Ukraine’ is no longer considered a key audit matter. Otherwise, the key audit

matters below are consistent with last year.

Independent auditor’s report to Coca-Cola HBC AG continued

Key audit matter How our audit addressed the key audit matter

Goodwill and indefinite-lived intangible

assets impairment assessment

Refer to Note 14 ‘Intangible assets’.

Goodwill and indefinite-lived intangible assets

as at 31 December 2023 amount to €1,820.8

million and €738.2 million, respectively.

The above amounts have been allocated to

individual cash-generating units (‘CGUs’), which

in accordance with International Accounting

Standard 36 ‘Impairment of Assets’ (‘IAS 36’)

require the performance of an impairment

assessment at least annually or whenever there

is an indication of impairment. The impairment

assessment involves the determination of the

recoverable amount of the CGU, being the

higher of the value-in-use and the fair value less

costs of disposal.

We consider this area as a key audit matter due

to the magnitude of goodwill and indefinite-

lived intangible assets balances and because

the determination of whether elements of

goodwill and of indefinite-lived intangible assets

are impaired involves complex and subjective

estimations made by management about the

future results of the CGUs. These estimations

include assumptions surrounding revenue

growth rates, costs, foreign exchange rates and

discount rates.

Management closely monitored the increasing

macroeconomic uncertainty in Egypt

throughout the previous and current year and as

a result of the annual impairment assessment, a

charge of €109.4 million for goodwill impairment

was recorded for the Egyptian CGU. Relevant

disclosure has been included in the financial

statements in respect of this CGU.

No impairment was identified for the

remainingCGUs.

We evaluated the appropriateness of management’s

identification of the Group’s CGUs, the process

by which management prepared the CGUs’ value-

in-use calculations and the design and operating

effectiveness of related control activities.

We tested the mathematical accuracy of the CGUs’

value-in-use calculations and compared the cash flow

projections included therein to the financial budgets,

approved by the directors, covering a one-year period,

and management’s projections for the subsequent

four years. In addition, we assessed management’s

past forecasting accuracy by comparing key elements

of the prior year projections with actual results.

We challenged management’s cash flow projections

in relation to the assumptions applied to the value-

in-use calculations, taking into account the ongoing

challenging macroeconomic environment in several

countries.

With the support of our valuation specialists, we

assessed the appropriateness of the methodology

and valuation techniques used as well as certain

assumptions including discount, annual revenue growth

and perpetuity revenue growth rates.

We also evaluated management’s assessment of

the potential impact of climate change risks, such as

the cost of water, carbon emissions and exposure to

extreme weather events.

We performed our independent sensitivity analyses

on the key drivers of the value-in-use calculations for

the CGUs with significant balances of goodwill and

indefinite-lived intangible assets.

Based on our work, we concluded that the results

reached by management in relation to the impairment

testing of goodwill and indefinite-lived intangible assets

were supported by assumptions within reasonable

ranges.

We evaluated the related disclosures provided in the

financial statements in Note 14 ‘Intangible assets’ and

concluded that these are appropriate.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 187

Key audit matter How our audit addressed the key audit matter

Uncertain tax positions

Refer to Note 11 ‘Taxation’ and Note 30

‘Contingencies’.

The Group operates in numerous tax

jurisdictions and is subject to periodic

challenges, in the normal course of business,

by local tax authorities on a range of matters

including corporate tax, transfer pricing

arrangements and indirect taxes. As at 31

December 2023, the Group has provisions for

uncertain tax positions of €82.8 million that are

classified in current tax liabilities, current tax

assets and deferred tax liabilities.

The impact of changes in local tax regulations

and ongoing inspections by local tax authorities,

could materially impact the amounts recorded

in the financial statements.

Where the amount of tax payable is uncertain,

the Group establishes provisions based on

management’s estimates with respect to the

likelihood of potential material tax exposures

crystallising and the probable amount of the

resultant liability.

We consider this area as a key audit matter given

the level of judgement and uncertainty involved

in estimating tax provisions, the complexities

of dealing with tax rules and regulations in

numerous jurisdictions that could materially

impact the amounts recorded in the financial

statements.

In order to understand and evaluate management’s

judgement, we considered the status of current tax

authority inspections and enquiries, the outcome

of previous tax authority inspections, judgemental

positions taken in tax returns and current year

estimates as well as recent developments in the tax

jurisdictions in which the Group operates.

We evaluated the Group’s monitoring process of the

current tax authority inspections and challenged

management’s estimates, particularly in respect of

cases where there had been significant developments

with tax authorities.

Our component audit teams, through the use of tax

specialists with local knowledge and relevant expertise,

assessed the tax positions taken by the subsidiary

undertakings in scope, in the context of applying local

tax laws and evaluating the local tax assessments.

We read recent rulings and correspondence with tax

authorities, as well as external advice provided by the

Group’s tax experts and legal advisors. Additionally, with

our group engagement team tax specialists we further

evaluated management’s estimation of tax exposures

and contingencies in order to assess the adequacy of

the Group’s tax provisions and satisfy ourselves that

the tax provisions have been appropriately recorded or

adjusted to reflect the latest developments.

We held meetings with Group and local management

to discuss the individual tax positions of the in-scope

subsidiary undertakings and assessed with the support

of our group engagement tax team the Group’s overall

tax exposure.

From the evidence obtained we consider the provisions

in relation to uncertain tax positions as at 31 December

2023 to be reasonable.

We also evaluated the related disclosures provided

in the financial statements in Note 11 ‘Taxation’ and

Note 30 ‘Contingencies’ and concluded that these

areappropriate.

Independent auditor’s report to Coca-Cola HBC AG continued

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed sufficient work to be able to provide

an opinion on the financial statements as a whole, taking into account the operating structure of the

Group, the accounting processes and controls, and the industry in which the Group operates.

The Group operates through its trading subsidiary undertakings in Nigeria, Egypt and 27 countries

in Europe, as set out in Note 1 ‘General information’ and Note 7 ‘Segmental analysis’ of the financial

statements. The processing of the accounting records for these subsidiary undertakings is largely

centralised in a shared services centre in Bulgaria, except for the subsidiary undertakings in Armenia,

Belarus, Egypt, Moldova, North Macedonia, Russia and Ukraine which process their accounting records

locally. The Group also operates centralised treasury functions in the Netherlands and in Greece and a

centralised procurement function for key raw materials in the Netherlands.

Based on their significance to the financial statements and in light of the key audit matters as noted

above, we identified 17 subsidiary undertakings in 15 countries spread across all of the Group’s

reportable segments (including the significant trading subsidiary undertakings in Italy, Nigeria,

Poland, Romania, Russia and Switzerland) which, based on our scoping analysis, required a full scope

audit of their financial information. In addition, audit procedures were performed with respect to the

centralised treasury functions by the group engagement team and with respect to the centralised

procurement function by the component audit team in the Netherlands. 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.

The undertakings which were in scope for the purpose of our audit accounted for 82% of consolidated

net sales revenue, 80% of consolidated profit before tax and 83% of consolidated total assets of the

Group. This, together with the additional procedures performed at Group level, gave us sufficient and

appropriate audit evidence for our opinion on the financial statements.

At the planning phase of the audit process, we held a two-day audit planning workshop in Greece

focusing on planning and risk assessment activities, fraud risk assessment, auditor independence,

accounting and auditing developments, ESG related topics and centralised testing procedures. This

audit planning workshop was attended by the component teams in scope for group audit purposes.

The group engagement team was also responsible for planning, designing and overseeing the audit

procedures performed at the shared services centre in Bulgaria. In addition, we performed work

centrally on IT general controls and cybersecurity risks and shared audit comfort with the component

teams. The group engagement team performed audit procedures with respect to the Group

consolidation, financial statements disclosures and a number of other areas that involve significant

judgement and estimates, including goodwill and intangible assets and the Group’s overall going

concern assessment.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 188

We issued formal, written instructions to the component teams setting out the work to be performed

by each of them and we were in active dialogue throughout the year with the teams that conducted

these component audits. In addition to holding formal periodic meetings, the group engagement team

had ongoing informal interactions with the component audit teams to be continuously updated and to

monitor their progress and the results of their procedures. Furthermore, the group engagement team

reviewed component auditor working papers and undertook other forms of interaction as considered

necessary, depending on the significance of the component and the extent of accounting and audit

issues arising. We evaluated the sufficiency of the audit evidence obtained through discussions with

each team and a review of their audit working papers and deliverables. The senior members of the

group engagement team performed site visits in Bulgaria, Greece, Italy, Poland, Romania, Serbia and

Switzerland. These visits gave us an opportunity to meet with the local audit teams and management to

discuss the business performance and outlook, regulations and taxation, and any specific accounting

and auditing matters identified, including fraud and internal controls. Where physical attendance was

not undertaken, we participated in the final audit meetings for the trading subsidiary undertakings in

Egypt and Nigeria via video conference.

The impact of climate risk on our audit

As part of our audit, we also made enquiries of management to understand the process adopted

to assess the extent of the potential impact of climate change risk on the financial statements and

support the disclosures made. In addition, we read the minutes of the governance processes in

place to assess climate risk and the additional reporting made by the entity on climate. Management

considers that climate change does not give rise to a potential material financial statement impact.

We used our knowledge of the Group to evaluate management’s assessment, and we remained alert

when performing our audit procedures for any indicators of the impact of climate risk. We particularly

considered how climate change risks would impact the assumptions made in the forecasts prepared by

management and used in their impairment analyses and going concern assessment. Our procedures

did not identify any material impact on the financial statements for the year ended 31 December 2023.

Whilst the Group has started to quantify some of the impacts, the future estimated financial impacts

of climate risk are clearly uncertain given the medium to long term timeframes involved and their

dependency on how governments, global markets, corporations and society respond to the issue of

climate change and the speed of technological advancements that may be necessary. Accordingly,

financial statements cannot capture all possible future outcomes as these are not yet known. Where

climate risk relates to a key audit matter our audit response is given in the key audit matters section of

our audit report. We considered the consistency of the disclosures in relation to climate change made

in the other information within the annual report with the financial statements and knowledge from

our audit. We discussed with management and the Audit & Risk Committee the ways in which climate

change disclosures should continue to evolve as greater understanding of the actual and potential

impacts on the Group’s business is obtained.

Materiality

The scope of our audit was influenced by our application of the concept of materiality. We set certain

quantitative thresholds for materiality. These, together with qualitative considerations, helped us to

determine the scope of our audit and the nature, timing and extent of our audit procedures on the

individual financial statement line items and disclosures and to evaluate the effect of misstatements,

both individually and in aggregate, on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a

whole, as follows:

Overall group materiality €51.0 million (2022: €41.1 million).

How we determined it 5% of adjusted profit before tax

This benchmark has not changed compared to the prior year.

Rationale for benchmark applied We consider that the income statement remains the principal

measure used by the shareholders in assessing the underlying

performance of the Group. Therefore, an approach to materiality

based on 5% of profit before tax has been applied. However, we have

adjusted this benchmark by items which, in our view, are considered

unusual and infrequently occurring in nature such as the impairment

charges. Therefore, we have used adjusted profit before tax which is

a generally accepted auditing benchmark.

For each component in the scope of our group audit, we allocated a materiality that is less than our

overall group materiality. The range of materiality allocated across components was from €3.5 million

to €30.0 million.

When planning the audit, we considered if multiple uncorrected and undetected misstatements may

exist which, when aggregated, could exceed our overall materiality level. In order to reduce the risk

of multiple misstatements which could aggregate to this amount to an appropriately low level, we

used a lower level of materiality, known as performance materiality. Specifically, we use performance

materiality in determining the scope of our audit and the nature and extent of our testing of account

balances, classes of transactions and disclosures, for example in determining sample sizes. Our

performance materiality was 75% of overall materiality, amounting to €38.3 million (2022: €30.8 million).

In determining the performance materiality, we considered a number of factors – the history of

misstatements, risk assessment and aggregation risk and the effectiveness of controls – and

concluded that an amount at the upper end of our normal range was appropriate.

Where the audit identified any items that were not reflected appropriately in the financial information,

we considered these items carefully to assess if they were individually or in aggregate material. We

agreed with the Audit & Risk Committee that we would report to them misstatements identified

exceeding €2.5 million (2022: €2.0 million) as well as misstatements below that amount that, in our view,

warranted reporting for qualitative reasons.

Independent auditor’s report to Coca-Cola HBC AG continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 189

Conclusions relating to going concern

Our evaluation of the directors’ assessment of the Group’s ability to continue to adopt the going

concern basis of accounting included:

• Verification that the cash flow projections used in the goodwill impairment, going concern and

viability assessments were consistent;

• Review of management’s assessment supporting the Group’s ability to continue to adopt the going

concern basis of accounting, ensuring that appropriate severe but plausible downside scenarios,

including those relating to climate change, the geopolitical events involving Russia and Ukraine and

the tensions in the Middle East, were considered;

• Assessment of the reasonableness of management’s assumptions used in the cash flow projections;

• Testing of the mathematical integrity of the cash flow forecasts and reconciliation with the Board

approved budget and management’s projections for the subsequent periods;

• Evaluation of the Group’s liquidity for the period under assessment by considering the Group’s

available cash resources, committed undrawn credit facilities and other debt instruments in place

as well as the maturity profile of the Group’s debt. We confirmed the outstanding amounts of the

financing facilities and verified their nature, terms and conditions;

• Consideration of whether climate change is expected to have any significant impact during the

period of the going concern assessment; and

• Evaluation of the appropriateness of the related disclosures provided in the financial statements in

Note 2 ‘Basis of preparation and consolidation’.

Based on the work performed, we have not identified any material uncertainties relating to events or

conditions that, individually or collectively, may cast significant doubt on the Group’s ability to continue

as a going concern for a period of at least twelve months from when the financial statements are

authorised for issue.

In auditing the financial statements, we have concluded that the directors’ use of the going concern

basis of accounting in the preparation of the financial statements is appropriate. However, because not

all future events or conditions can be predicted, this conclusion is not a guarantee as to the Group’s

ability to continue as a going concern.

In relation to the Group’s reporting on how they have applied the UK Corporate Governance Code, we

have nothing material to add or draw attention to in relation to the directors’ statement in the financial

statements about whether the directors considered it appropriate to adopt the going concern basis

ofaccounting.

Our responsibilities and the responsibilities of the directors with respect to going concern are

described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial

statements, our auditor’s report thereon and the Swiss statutory reporting, which we obtained prior to

the date of this auditor’s report. The directors are responsible for the other information. Our opinion

on the financial statements does not cover the other information and, accordingly, we do not express

an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance

thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the audit, or otherwise appears to be

materially misstated. If we identify an apparent material inconsistency or material misstatement,

we are required to perform procedures to conclude whether there is a material misstatement of the

financial statements or a material misstatement of the other information. 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 based on these responsibilities.

Corporate governance statement

The Listing Rules require us to review the directors’ statements in relation to going concern, longer-

term viability and that part of the corporate governance statement relating to the Group’s compliance

with the provisions of the UK Corporate Governance Code specified for our review. Our additional

responsibilities with respect to the corporate governance statement as other information, are

described in the Reporting on other information section of this report.

Based on the work undertaken as part of our audit, we have concluded that each of the following

elements of the corporate governance statement is materially consistent with the financial statements

and our knowledge obtained during the audit, and we have nothing material to add or draw attention to

in relation to:

• The directors’ confirmation that they have carried out a robust assessment of the emerging and

principal risks;

• The disclosures in the Annual Report that describe those principal risks, what procedures are in place

to identify emerging risks and an explanation of how these are being managed or mitigated;

• The directors’ statement in the financial statements about whether they considered it appropriate

to adopt the going concern basis of accounting in preparing them, and their identification of any

material uncertainties relating to the Group’s ability to continue to do so over a period of at least

twelve months from the date of approval of the financial statements;

• The directors’ explanation as to their assessment of the Group’s prospects, the period this

assessment covers and why the period is appropriate; and

• The directors’ statement as to whether they have a reasonable expectation that the Group will be

able to continue in operation and meet its liabilities as they fall due over the period of its assessment,

including any related disclosures drawing attention to any necessary qualifications or assumptions.

Independent auditor’s report to Coca-Cola HBC AG continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 190

Our review of the directors’ statement regarding the longer-term viability of the Group 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 UK Corporate Governance Code; and considering whether the statement is

consistent with the financial statements and our knowledge and understanding of the Group and its

environment obtained in the course of the audit.

In addition, based on the work undertaken as part of our audit, we have concluded that each of the

following elements of the corporate governance statement is materially consistent with the financial

statements and our knowledge obtained during the audit:

• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and

understandable, and provides the information necessary for the members to assess the Group’s

position, performance, business model and strategy;

• The section of the Annual Report that describes the review of effectiveness of risk management and

internal control systems; and

• The section of the Annual Report describing the work of the Audit & Risk Committee.

We have nothing to report in respect of our responsibility to report when the directors’ statement

relating to the Group’s compliance with the Code does not properly disclose a departure from a

relevant provision of the Code specified under the Listing Rules for review by the auditors.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors’ Responsibilities in the Annual Report, the

directors are responsible for the preparation of the financial statements in accordance with the

applicable framework and for being satisfied that they give a true and fair view. The directors are also

responsible for such internal control as they determine is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group’s ability to

continue as a going concern, disclosing as applicable matters related to going concern and using the

going concern basis of accounting unless the directors either intend to liquidate the Group or to cease

operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, outlined above, to detect material misstatements in

respect of irregularities, including fraud. The extent to which our procedures are capable of detecting

irregularities, including fraud, is detailed below.

Based on our understanding of the Group and the industry in which it operates, we considered the

extent to which non-compliance with applicable laws and regulations may have a material effect on the

financial statements, including, but not limited to, the corporate regulations arising from its listings on

the London Stock Exchange and Athens Exchange, tax laws and regulations applicable to Coca-Cola

HBC and its subsidiaries and regulations relating to unethical and prohibited business practices. We

evaluated management’s incentives and opportunities for fraudulent manipulation of the financial

statements (including the risk of override of controls), and where management made subjective

judgements in respect of significant accounting estimates that involved making assumptions and

considering future events that are inherently uncertain. The group engagement team shared this risk

assessment with the component auditors so that they could include appropriate audit procedures in

response to such risks in their work. Audit procedures performed by the group engagement team

and/or component auditors included among others:

• Inquiries of management, internal audit, internal legal counsel, management’s experts and external

legal advisors, where relevant, including consideration of known or suspected instances of non-

compliance with laws and regulation and fraud;

• Evaluation and testing of the operating effectiveness of management’s controls designed to prevent

and detect irregularities;

• Assessment of matters reported on the Group’s whistleblowing helpline and the results of

management’s investigation of such matters;

• Reading the minutes of Board meetings to identify any inconsistencies with other information

provided by management;

• Challenging assumptions and judgements made by management in significant accounting

estimates, in particular in relation to the key audit matters;

• Inspecting correspondence with legal advisors and internal audit reports in so far as they related to

the financial statements; and

• Identifying and testing journal entries, in particular any entries posted with unusual account

combinations, journal entries posted by senior management and consolidation entries.

There are inherent limitations in the audit procedures described above. We are less likely to become

aware of instances of non-compliance with laws and regulations that are not closely related to events

and transactions reflected in the financial statements. Also, the risk of not detecting a material

misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may

involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through

collusion.

Independent auditor’s report to Coca-Cola HBC AG continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 191

Our audit testing might include testing complete populations of certain transactions and balances,

possibly using data auditing techniques. However, it typically involves selecting a limited number of

items for testing, rather than testing complete populations. We will often seek to target particular items

for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable

us to draw a conclusion about the population from which the sample is selected.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain

professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate to provide a basis for our 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 circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report

to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify

our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s

report. However, future events or conditions may cause the Group to cease to continue as a going

concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events

in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities

or business activities within the Group to express an opinion on the financial statements. We are

responsible for the direction, supervision and performance of the 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 significant audit findings, including any significant deficiencies in

internal control that we identify during our audit. Those charged with governance are responsible for

overseeing the Group’s financial reporting process.

We also provide those charged with governance with a statement that we have complied with relevant

ethical requirements regarding independence and communicate with them all relationships and

othermatters that may reasonably be thought to bear on our independence, and where applicable,

related safeguards.

From the matters communicated with those charged with governance, we determine those matters

that were of most significance in the audit of the financial statements of the current year and are

therefore the key audit matters. We describe these matters in our auditor’s 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 outweigh the public interest benefits of

such communication.

Use of this report

This report, including the opinions, has been prepared for and only for Coca-Cola HBC AG for the

purpose of compliance with the Disclosure Guidance and Transparency Rules sourcebook and the

Listing Rules of the FCA and for no other purpose. We do not, in giving these opinions, accept or

assume responsibility for any other purpose or to any other person to whom this report is shown or

intowhose hands it may come, save where expressly agreed by our prior consent in writing.

Other required reporting

Appointment

We have been the Group’s auditors since 2003 and following a tender process that the Group

conducted in 2015, at the recommendation of the Audit & Risk Committee, we were reappointed by the

directors on 11 December 2015 to audit the financial statements for the year ended 31 December 2017

and subsequent financial periods.

Assurance Report on the European Single Electronic Format pursuant to the Athens Exchange

listing requirements

We have examined the digital files of Coca-Cola HBC, which were compiled in accordance with the

European Single Electronic Format (ESEF) defined by the Commission Delegated Regulation (EU)

2019/815, as amended by Regulation (EU) 2020/1989 (hereinafter ‘ESEF Regulation’), and which

include the consolidated financial statements of the Group for the year ended 31 December 2023,

in XHTML format 549300EFP3TNG7JGVE49-2023-12-31-en.xhtml, as well as the provided XBRL file

549300EFP3TNG7JGVE49-2023-12-31-en.zip with the appropriate marking up, on the aforementioned

consolidated financial statements, including the other explanatory information (notes to the financial

statements).

Independent auditor’s report to Coca-Cola HBC AG continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 192

Regulatory framework

The digital files of the European Single Electronic Format are compiled in accordance with ESEF

Regulation and 2020 / C 379/01 Interpretative Communication of the European Commission of

10November 2020, as provided by the Greek Law 3556/2007 and the relevant announcements of

theHellenic Capital Market Commission and the Athens Exchange (‘ESEF Regulatory Framework’).

In summary, this Framework includes the following requirements:

• All annual financial reports should be prepared in XHTML format.

• For consolidated financial statements in accordance with International Financial Reporting

Standards, the financial information stated in the consolidated balance sheet, the consolidated

income statement, the consolidated statement of comprehensive income, the consolidated

cash flow statement and the consolidated statement of changes in equity, as well as the financial

information included in the other explanatory information, should be marked-up with XBRL ‘tags’

and ‘block tag’, according to the ESEF Taxonomy, as in force. The technical specifications for ESEF,

including the relevant classification, are set out in the ESEF Regulatory Technical Standards.

The requirements set out in the current ESEF Regulatory Framework are suitable criteria for

formulating a reasonable assurance conclusion.

Responsibilities of the management and those charged with governance

Management is responsible for the preparation and submission of the consolidated financial

statements of the Group, for the year ended 31 December 2023 in accordance with the requirements

set by the ESEF Regulatory Framework, as well as for those internal controls that management

determines as necessary, to enable the compilation of digital files free of material error due to either

fraud or error.

Auditor’s responsibilities

Our responsibility is to plan and carry out this assurance work, in accordance with no. 214/4 / 11.02.2022

Decision of the Board of Directors of the Hellenic Accounting and Auditing Standards Oversight Board

(HAASOB) and the ‘Guidelines in relation to the work and the assurance report of the Certified Public

Accountants on the European Single Electronic Format (ESEF) of issuers with securities listed on a

regulated market in Greece’ as issued by the Board of Certified Auditors on 14/02/2022 (hereinafter

‘ESEF Guidelines’), providing reasonable assurance that the consolidated financial statements of the

Group prepared by management in accordance with ESEF comply in all material respects with the

applicable ESEF Regulatory Framework.

Our work was carried out in accordance with the Code of Ethics for Professional Accountants of the

International Ethics Standard Board for Accountants (IESBA Code).

The assurance work we conducted is limited to the procedures provided by the ESEF Guidelines

and was carried out in accordance with International Standard on Assurance Engagements 3000,

‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’. Reasonable

assurance is a high level of assurance, but it is not a guarantee that this work will always detect a material

misstatement regarding non-compliance with the requirements of the ESEF Regulation.

Conclusion

Based on the procedures performed and the evidence obtained, we conclude that the

consolidated financial statements of the Group for the year ended 31 December 2023, in XHTML

file format 549300EFP3TNG7JGVE49-2023-12-31-en.xhtml, as well as the provided XBRL file

549300EFP3TNG7JGVE49-2023-12-31-en.zip with the appropriate marking up, on the aforementioned

consolidated financial statements, including the other explanatory information, have been prepared, in

all material respects, in accordance with the requirements of the ESEF Regulatory Framework.

Other matters

Swiss statutory reporting requirements

PwC Switzerland has reported separately on the Group and Company financial statements of Coca-

Cola HBC AG for the year ended 31 December 2023 for Swiss statutory purposes. The reports are

available in pages 266 and 270.

ESEF Regulatory Technical Standard pursuant to the London Stock Exchange listing requirements

As required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule 4.1.14R,

these financial statements form part of the ESEF-prepared annual financial report filed on the National

Storage Mechanism of the Financial Conduct Authority in accordance with the ESEF Regulatory

Technical Standard (‘ESEF RTS’). This auditors’ report provides no assurance over whether the annual

financial report has been prepared using the single electronic format specified in the ESEF RTS which

may differ from the ESEF as defined in section ‘Other required reporting’ above.

Fotis Smyrnis

the Certified Auditor, Reg. No. 52861

for and on behalf of PricewaterhouseCoopers S.A.

Certified Auditors, Reg. No. 113

Athens, Greece

15 March 2024

Independent auditor’s report to Coca-Cola HBC AG continued

Notes:

(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 of these matters and, accordingly, the auditors accept no responsibility for any changes that may have

occurred to the financial statements since they were initially presented on the website.

(b) Legislation in the UK, Greece and Switzerland governing the preparation and dissemination of financial statements may differ from

legislation in other jurisdictions.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 193

Consolidated financial statements

Consolidated income statement

For the year ended 31 December

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of comprehensive income

For the year ended 31 December

Note

		2023	2022
		€ million	€ million
Net sales revenue	7, 8	10,184.0	9,198.4
Cost of goods sold		(6,626.6)	(6,054.2)
Gross profit		3,557.4	3,144.2
Operating expenses (excluding exceptional items
relatedtoRussia-Ukraine conflict)	9	(2,613.5)	(2,354.6)
Exceptional items related to Russia-Ukraine conflict	6	–	(127.4)
Operating expenses	9	(2,613.5)	(2,482.0)
Share of results of integral equity method investments	16	9.7	41.6
Operating profit	7	953.6	703.8
Finance income		55.7	13.2
Finance costs		(104.0)	(95.9)
Finance costs, net	10	(48.3)	(82.7)
Share of results of non-integral equity method investments	16	5.0	2.5
Profit before tax		910.3	623.6
Ta x	11	(274.6)	(208.0)
Profit after tax		635.7	415.6
Attributable to:
Owners of the parent		636.5	415.4
Non-controlling interests		(0.8)	0.2
		635.7	415.6
Basic and diluted earnings per share (€)	12	1.73	1.13

Note

		2023	2022
		€ million	€ million
Profit after tax		635.7	415.6
Other comprehensive income:
Items that may be subsequently reclassified
toincomestatement:
Cost of hedging	25	(7.1)	(3.5)
Net gain on cash flow hedges	25	19.7	34.6
Foreign currency translation losses	13	(484.6)	(252.6)
Share of other comprehensive (loss)/income of equity
method investments	13, 16	(11.7)	34.2
Reclassification of share of other comprehensive income
ofequity method investments to the income statement, arising from business combination	24	–	145.2
Income tax relating to items that may be subsequently
reclassified to income statement	13	(3.0)	(3.9)
		(486.7)	(46.0)
Items that will not be subsequently reclassified
toincomestatement:
Valuation gain/(loss) on equity investments at fair value through other comprehensive income	13	0.4	(0.1)
Actuarial (losses)/gains	13	(16.4)	26.0
Income tax relating to items that will not be subsequently
reclassified to income statement	13	1.9	1.8
		(14.1)	27.7
Other comprehensive loss for the year, net of tax	13	(500.8)	(18.3)
Total comprehensive income for the year		134.9	397.3
Total comprehensive income attributable to:
Owners of the parent		141.3	406.1
Non-controlling interests		(6.4)	(8.8)
		134.9	397.3

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 194

Consolidated financial statements continued

Note

		2023	2022
		€ million	€ million
Assets
Intangible assets	14	2,568.6	2,542.5
Property, plant and equipment	15	3,057.1	3,266.3
Equity method investments	16	197.0	205.6
Other financial assets	25	23.3	9.4
Deferred tax assets	11	41.5	37.5
Other non-current assets	19	81.9	78.2
Total non-current assets		5,969.4	6,139.5
Inventories	18	773.3	770.0
Trade, other receivables and assets	19	1,188.0	1,147.9
Other financial assets	25, 26	667.9	1,063.8
Current tax assets		17.1	14.5
Cash and cash equivalents	26	1,260.6	719.9
		3,906.9	3,716.1
Assets classified as held for sale	20	3.3	0.1
Total current assets		3,910.2	3,716.2
Total assets		9,879.6	9,855.7

Note

		2023	2022
		€ million	€ million
Liabilities
Borrowings	26	948.1	337.0
Other financial liabilities	25	67.3	41.9
Trade and other payables	21	2,478.1	2,331.9
Provisions and employee benefits	22	199.1	181.5
Current tax liabilities		153.7	114.4
Total current liabilities		3,846.3	3,006.7
Borrowings	26	2,476.4	3,082.9
Other financial liabilities	25	5.7	3.7
Deferred tax liabilities	11	250.3	264.6
Provisions and employee benefits	22	109.1	106.9
Other non-current liabilities		5.1	5.3
Total non-current liabilities		2,846.6	3,463.4
Total liabilities		6,692.9	6,470.1
Equity
Share capital	27	2,030.3	2,024.3
Share premium	27	2,555.7	2,837.4
Group reorganisation reserve	27	(6,472.1)	(6,472.1)
Treasury shares	27	(144.1)	(131.2)
Exchange equalisation reserve	27	(1,708.9)	(1,218.2)
Other reserves	27	272.1	292.5
Retained earnings		6,559.8	5,949.6
Equity attributable to owners of the parent		3,092.8	3,282.3
Non-controlling interests		93.9	103.3
Total equity		3,186.7	3,385.6
Total equity and liabilities		9,879.6	9,855.7

Consolidated balance sheet

As at 31 December

The accompanying notes form an integral part of these consolidated financial statements.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 195

Consolidated financial statements continued

					Attributable to owners of the parent
			Group		Exchange				Non-
		Share	reorganisation	Treasury	equalisation	Other	Retained		controlling
	Share capital	premium	reserve	shares	reserve	reserves	earnings	Total	interests	Total equity
	€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Balance as at 1 January 2022	2,022.3	3,097.3	(6,472.1)	(146.6)	(1,154.0)	310.2	5,457.4	3,114.5	2.6	3,117.1
Shares issued to employees exercising stock options	2.0	2.7	–	–	–	–	–	4.7	–	4.7
Share-based compensation:
Performance shares	–	–	–	–	–	16.6	–	16.6	–	16.6
Movement in shares held for equity compensation plan	–	–	–	–	–	1.2	–	1.2	–	1.2
Appropriation of reserves	–	–	–	15.4	–	(21.1)	5.7	–	–	–
Non-controlling interests on business combinations	–	–	–	–	–	–	–	–	259.6	259.6
Purchase of shares held by non-controlling interests	–	–	–	–	–	–	40.9	40.9	(149.8)	(108.9)
Dividends	–	(262.6)	–	–	–	–	2.4	(260.2)	(0.3)	(260.5)
Transfer of cash flow hedge reserve, including cost of hedging to inventories, net of tax	–	–	–	–	–	(41.5)	–	(41.5)	–	(41.5)
	2,024.3	2,837.4	(6,472.1)	(131.2)	(1,154.0)	265.4	5,506.4	2,876.2	112.1	2,988.3
Profit for the year, net of tax	–	–	–	–	–	–	415.4	415.4	0.2	415.6
Other comprehensive loss for the year, net of tax	–	–	–	–	(64.2)	27.1	27.8	(9.3)	(9.0)	(18.3)
Total comprehensive income for the year, net of tax	–	–	–	–	(64.2)	27.1	443.2	406.1	(8.8)	397.3
Balance as at 31 December 2022	2,024.3	2,837.4	(6,472.1)	(131.2)	(1,218.2)	292.5	5,949.6	3,282.3	103.3	3,385.6
Shares issued to employees exercising stock options	6.0	8.2	–	–	–	–	–	14.2	–	14.2
Share-based compensation:
Performance shares	–	–	–	–	–	20.4	–	20.4	–	20.4
Movement in shares held for equity compensation plan	–	–	–	–	–	0.2	–	0.2	–	0.2
Appropriation of reserves	–	–	–	29.7	–	(25.0)	(4.7)	–	–	–
Purchase of shares held by non-controlling interests	–	–	–	–	–	–	(9.9)	(9.9)	(2.7)	(12.6)
Acquisition of treasury shares	–	–	–	(42.6)	–	–	–	(42.6)	–	(42.6)
Dividends	–	(289.9)	–	–	–	–	2.7	(287.2)	(0.3)	(287.5)
Transfer of cash flow hedge reserve, including cost of hedging to inventories, net of tax	–	–	–	–	–	(25.9)	–	(25.9)	–	(25.9)
	2,030.3	2,555.7	(6,472.1)	(144.1)	(1,218.2)	262.2	5,937.7	2,951.5	100.3	3,051.8
Profit for the year, net of tax	–	–	–	–	–	–	636.5	636.5	(0.8)	635.7
Other comprehensive loss for the year, net of tax	–	–	–	–	(490.7)	9.9	(14.4)	(495.2)	(5.6)	(500.8)
Total comprehensive income for the year, net of tax	–	–	–	–	(490.7)	9.9	622.1	141.3	(6.4)	134.9
Balance as at 31 December 2023	2,030.3	2,555.7	(6,472.1)	(144.1)	(1,708.9)	272.1	6,559.8	3,092.8	93.9	3,186.7
1. The amount included in other reserves of €41.5 million for 2022 represents the cash flow hedge reserve, including cost of hedging, transferred to inventories of €51.4 million gain, and the deferred tax expense thereof amounting to €9.9 million.

2. The amount included in the exchange equalisation reserve of €64 . 2 million loss for 2022 represents the exchange loss attributable to owners of the parent, including €3 4. 8 million gain relating to the share of other comprehensive income of equity method investments and €144 .6 million

relating to reclassification of share of other comprehensive loss of equity method investments to the income statement arising from business combination.

The amount of other comprehensive income, net of tax included in other reserves of €27 .1 million gain for 2022 consists of cash flow hedges gain of €31.1 million, share of other comprehensive income of equity method investments of €0. 6 million loss, valuation losses of €0.1 million on

equity investments at fair value through other comprehensive income, €0. 6 million gain relating to reclassification of share of other comprehensive income of equity method investments to the income statement arising from business combination, and the deferred tax expense thereof

amounting to €3.9 million.

The amount of €4 43. 2 million gain attributable to owners of the parent comprises profit for the year, net of tax of €415. 4 million, actuarial gains of €26 .0 million and the deferred tax income thereof amounting to €1. 8 million.

The amount of €8. 8 million losses included in non-controlling interests for 2022 represents the exchange loss attributable to non-controlling interests of €9 .0 million, and the share of non-controlling interests in profit for the year, net of tax of €0 . 2 million.

3. The amount included in other reserves of €25 .9 million for 2023 represents the cash flow hedge reserve, including cost of hedging, transferred to inventories of €30 .8 million gain, and the deferred tax expense thereof amounting to €4 .9 million.

4. The amount included in the exchange equalisation reserve of €49 0 .7 million loss for 2023 represents the exchange loss attributable to owners of the parent, including €11.7 million loss relating to the share of other comprehensive income of equity method investments.

The amount of other comprehensive income, net of tax included in other reserves of €9.9 million gain for 2023 consists of cash flow hedges gain of €12 .6 million, valuation gains of €0 .4 million on equity investments at fair value through other comprehensive income and the deferred tax

expense thereof amounting to €3 .1 million.

The amount of €6 22.1 million gain attributable to owners of the parent comprises profit for the year, net of tax of €636 . 5 million, actuarial losses of €16.4 million and the deferred tax income thereof amounting to €2. 0 million.

The amount of €6. 4 million loss included in non-controlling interests for 2023 represents the exchange loss attributable to the non-controlling interests of €5 .6 million, and the share of non-controlling interests in profit for the year, net of tax of €0 . 8 million loss.

For further details, refer to Note 13 ‘Components of other comprehensive income’, Note 24 ‘Business combinations and acquisition of non-controlling interest’, Note 25 ‘Financial risk management and financial

instruments’, Note 27 ‘Equity’ and Note 29 ‘Share-based payments’.

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of changes in equity

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 196

Consolidated financial statements continued

Note

		2023	2022
		€ million	€ million
Operating activities
Profit after tax		635.7	415.6
Finance costs, net	10	48.3	82.7
Share of results of non-integral equity method investments	16	(5.0)	(2.5)
Tax charged to the income statement	11	274.6	208.0
Depreciation of property, plant and equipment including
right-of-use assets	15, 17	385.1	403.4
Impairment of property, plant and equipment including
right-of-use assets	15	14.8	81.5
Employee performance shares		20.4	16.5
Amortisation of intangible assets	14	1.4	1.4
Impairment of intangible assets	14	112.5	13.7
Impairment of equity method investments	6	–	52.8
Other non-cash items	24	–	70.5
		1,487.8	1,343.6
Share of results of integral equity method investments	16	(9.7)	(41.6)
(Gain)/loss on disposals of non-current assets	9	(1.3)	1.5
Increase in inventories		(142.6)	(241.1)
Increase in trade and other receivables		(212.7)	(104.7)
Increase in trade and other payables		491.0	472.6
Tax paid		(225.8)	(195.7)
Net cash inflow from operating activities		1,386.7	1,234.6
Investing activities
Payments for purchases of property, plant and equipment		(610.7)	(523.4)
Proceeds from sales of property, plant and equipment		7.2	7.5
Payment for business combinations, net of cash acquired	24	(180.4)	(399.2)
Proceeds from settlement of derivatives relating
tobusinesscombination	24	–	13.0
Payment for integral equity method investment	16, 28	–	(4.0)
Receipts from integral equity method investments	16, 28	6.7	9.7
Payments for non-integral equity method investments	16, 28	–	(6.5)
Receipts from non-integral equity method investments	28	7.0	1.8

Note

		2023	2022
		€ million	€ million
Net proceeds from/(payments for) investments in financial
assets at amortised cost		473.5	(333.4)
Net proceeds from investments in financial assets at fair value through profit or loss		–	142.6
Payments for investments in financial assets at fair value through other comprehensive income		(5.9)	–
Loans to related parties		(4.7)	(0.4)
Repayments of loans by related parties		0.5	2.0
Interest received		38.0	7.2
Net cash outflow from investing activities		(268.8)	(1,083.1)
Financing activities
Proceeds from shares issued to employees exercising
stockoptions	27	14.2	4.7
Purchase of shares from non-controlling interests	24	(12.6)	(108.9)
Acquisition of treasury shares	27	(42.6)	–
Proceeds from borrowings	26	136.4	650.0
Repayments of borrowings	26	(89.7)	(358.6)
Principal repayments of lease obligations	26	(59.1)	(65.2)
Dividends paid to owners of the parent	27	(287.2)	(260.2)
Dividends paid to non-controlling interests		(0.2)	(0.2)
Proceeds from settlement of derivatives regarding
financingactivities	26	4.6	0.1
Interest paid	26	(76.2)	(60.4)
Net cash outflow from financing activities		(412.4)	(198.7)
Net increase/(decrease) in cash and cash equivalents		705.5	(47.2)
Movement in cash and cash equivalents
Cash and cash equivalents at 1 January		719.9	782.8
Net increase/(decrease) in cash and cash equivalents		705.5	(47.2)
Effect of changes in exchange rates		(164.8)	(15.7)
Cash and cash equivalents as at 31 December	26	1,260.6	719.9

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated cash flow statement

For the year ended 31 December

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 197

Notes to the consolidated financial statements

1. General information

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 primarily non-alcoholic ready-to-drink

beverages, under franchise from The Coca-Cola Company, across Nigeria, Egypt and 26 countries

in Europe, while in Russia the Group operates under a business model focusing on local brands.

Information on the Group’s operations by segment is included in Note 7.

On 11 October 2012, Coca-Cola HBC, a Swiss stock corporation (Aktiengesellschaft/Société

Anonyme) incorporated by Kar-Tess Holding (a related party of the Group, refer to Note 28), announced

a voluntary share exchange offer to acquire all outstanding ordinary registered shares and all

American depositary shares of Coca-Cola Hellenic Bottling Company S.A. As a result of the successful

completion of this offer, on 25 April 2013, Coca-Cola HBC acquired 96.85% of the issued Coca-Cola

Hellenic Bottling Company S.A. shares, including shares represented by American depositary shares,

and became the new parent company of the Group. On 17 June 2013, Coca-Cola HBC completed its

statutory buyout of the remaining shares of Coca-Cola Hellenic Bottling Company S.A. that it did not

acquire upon completion of its voluntary share exchange offer. Consequently, Coca-Cola HBC acquired

100% of Coca-Cola Hellenic Bottling Company S.A. which was 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.

The shares of Coca-Cola HBC started trading in the premium segment of the London Stock Exchange

(Ticker symbol: CCH) and on the Athens Exchange (Ticker symbol: EEE) and regular way trading in

Coca-Cola HBC American depositary shares commenced on the New York Stock Exchange (Ticker

symbol: CCH) on 29 April 2013. On 24 July 2014, the Group proceeded to the delisting of its American

depositary shares 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 shares under the US

Securities Exchange Act of 1934 and the termination of its reporting obligations became effective on 3

November 2014.

2. Basis of preparation and consolidation

Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with

International Financial Reporting Standards (‘IFRS’) as adopted by the European Union (‘EU’) and in

compliance with Swiss law.

These consolidated financial statements were approved for issue by the Board of Directors on 14 March

2024 and are expected to be verified at the Annual General Meeting to be held on 21 May 2024.

Going concern

The financial statements have been prepared on a going concern basis. In adopting the going concern

basis for the preparation of these consolidated financial statements, management has considered

the Group’s financial performance in the year and overall financial position, the Group’s quantitative

viability exercise linked to its principal risks, including those relating to climate change, the geopolitical

events involving Russia and Ukraine, and the tensions in the Middle East. Management has reviewed the

Group’s financial forecasts and funding requirements with consideration given to the potential impact

of severe but plausible downside scenarios. Even under these scenarios, the Group’s cash position is

still expected to remain strong over the period of the financial forecasts, considering also that there

are mitigating actions the Group could take, should they be required, by making adjustments to its

operating plans within the normal course of business.

After assessing the Group’s current strong balance sheet and liquidity position, its committed funding

facilities and financial forecasts, management confirms the Group’s ability to generate cash for a period

of 12 months from the date of approval of these consolidated financial statements and beyond.

Therefore, it is deemed appropriate that the Group continues to adopt the going concern basis

for the preparation of the consolidated financial statements under the historical cost convention,

as modified by the revaluation of financial assets at fair value through profit or loss, investments

in equity instruments classified at fair value through other comprehensive income and derivative

financial instruments.

Basis of consolidation

Subsidiary undertakings are those companies over which the Group, directly or indirectly, has control.

The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its

involvement with the entity and has the ability to affect those returns through 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. The

subsidiaries’ accounting policies are consistent with policies adopted by the Group. All inter-company

transactions and balances between Group companies are eliminated on consolidation.

Transactions with non-controlling interests that do not result in loss of control are accounted for as

equity transactions – that is, as transactions with the owners in their capacity as owners. The difference

between fair value of any consideration paid and the relevant acquired share of the carrying value of net

assets of the subsidiary is recorded in equity.

When the Group ceases to have control over a subsidiary, it derecognises the related assets and

liabilities, non-controlling interests and any other components of equity, while any resulting gain or loss

is recognised in the income statement. Any retained interest in the former subsidiary 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 purposes of subsequently

accounting for the retained interest as an associate, joint venture or financial asset. In addition, any

amounts previously recognised in other comprehensive income in respect of that entity are accounted

for as if the Group had directly disposed of the related assets or liabilities. This means that amounts

previously recognised in other comprehensive income, if any, are reclassified to the income statement.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 198

Notes to the consolidated financial statements continued

3. Foreign currency and translation

The individual financial statements of each Group entity are presented in the currency of the primary

economic environment in which the entity operates (its functional currency). For the purposes of the

consolidated financial statements, the results and financial position of each entity are expressed in

Euro, which is the presentation currency for the consolidated financial statements.

The assets and liabilities of foreign subsidiaries are translated into Euro at the exchange rates prevailing

at the balance sheet date. The results of foreign subsidiaries are translated into Euro using the average

monthly exchange rates, being a reasonable approximation of the rates prevailing on the transaction

dates. The exchange differences arising on translation are recognised in other comprehensive income.

On disposal of a foreign entity, accumulated exchange differences are recognised as a component of

the gain or loss on disposal.

Transactions in foreign currencies are recorded at the rates ruling at the date of transaction. Monetary

assets and liabilities denominated in foreign currencies are remeasured at the rates of exchange ruling

at the balance sheet date. All gains and losses arising on remeasurement are included in the income

statement, except for exchange differences arising on assets and liabilities classified as cash flow hedges

which are deferred in equity until the occurrence of the hedged transaction, at which time they are

recognised in the income statement. Share capital and share premium denominated in a currency other

than the functional currency is initially stated at the spot rate of the date of issue but is not retranslated.

The principal exchange rates used for the translation purposes in respect of one Euro are:

	Average	Average	Closing	Closing
	2023	2022	2023	2022
US Dollar	1.08	1.05	1.11	1.06
UK Sterling	0.87	0.85	0.87	0.88
Polish Zloty	4.54	4.68	4.32	4.69
Nigerian Naira	695.06	448.99	1,056.96	493.61
Hungarian Forint	381.75	390.36	382.03	401.54
Swiss Franc	0.97	1.01	0.94	0.99
Russian Rouble	92.40	74.01	101.68	79.23
Romanian Leu	4.95	4.93	4.98	4.94
Ukrainian Hryvnia	39.54	33.92	41.63	38.94
Czech Koruna	24.00	24.56	24.69	24.21
Serbian Dinar	117.25	117.47	117.16	117.30
Egyptian Pound	33.15	20.09	34.16	26.35

4. Accounting pronouncements

a) Accounting pronouncements adopted in 2023

The Group has adopted the following standards and amendments to standards which were endorsed

by the EU, that are relevant to its operations and effective for accounting periods beginning on

1 January 2023:

• Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2;

• Definition of Accounting Estimates – Amendments to IAS 8;

• Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments

to IAS 12;

• IFRS 17 – Insurance Contracts and Amendments to IFRS 17; and

• International tax reform – Pillar Two Model Rules – Amendments to IAS 12: Pillar Two legislation has

been enacted or substantively enacted in certain jurisdictions in which the Group has presence,

but will be effective for the Group’s financial year beginning 1 January 2024 (refer to Note 11).

The adoption of these standards and amendments to standards did not have a material impact on the

consolidated financial statements of the Group.

b) Accounting pronouncements not yet adopted

At the date of approval of these consolidated financial statements, the following amendments relevant

to the Group’s operations were issued but not yet effective and not early-adopted:

• Classification of Liabilities as Current or Non-current and Non-Current liabilities with Covenants –

Amendments to IAS 1;

• Lease Liability in a Sale and Leaseback – Amendments to IFRS 16;

• Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7 (not endorsed by the EU); and

• The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability – Amendments to IAS 21

(not endorsed by the EU).

The above amendments are not expected to have a material impact on the consolidated financial

statements of the Group.

5. Critical accounting estimates and judgements

In conformity with IFRS, the preparation of the consolidated financial statements for Coca-Cola

HBC requires management to make estimates and judgements that affect the reported amounts

of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities

in the consolidated financial statements and accompanying notes. Although these estimates and

judgements are based on management’s knowledge of current events and actions that may be

undertaken in the future, actual results may ultimately differ from estimates.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 199

Notes to the consolidated financial statements continued

5. Critical accounting estimates and judgements continued

Estimates

The key items concerning the future and other key sources of estimation uncertainty at the reporting

date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and

liabilities within the next financial year, are described below:

• Impairment of goodwill and indefinite-lived intangible assets (refer to Note 14); and

• Employee benefits – defined benefit pension plans (refer to Note 22).

Judgements

In the process of applying the Group’s accounting policies, management has made the following

judgements, apart from those involving estimations as described above, which have the most

significant effect on the amounts recognised in the consolidated financial statements:

• Joint arrangements (refer to Note 16).

6. Russia-Ukraine conflict impact

6.1 Exceptional items related to Russia-Ukraine conflict

The conflict between Russia and Ukraine, which began in the prior year, affected the Group’s business

in those countries resulting in significant non-recurring costs. More specifically, the Group incurred

significant net impairment losses for property, plant and equipment, intangible assets and equity

method investments in Russia. These items have been presented in a separate line ‘Exceptional

items related to Russia-Ukraine conflict’ in the consolidated income statement, to provide users with

enhanced visibility over these items, considering their materiality. There were no exceptional items

related to the Russia-Ukraine conflict in 2023, while for 2022 these costs can be summarised as follows:

		Reversals of	Net impairment
	Impairment losses	impairment losses	losses
	€ million	€ million	€ million
Recoverability of individual assets in Russia	102.1	(42.8)	59.3
Recoverability of the Russian cash-generating unit:
Goodwill	13.7	–	13.7
Property, plant and equipment	15.0	(13.4)	1.6
Recoverability of equity method investments	52.8	–	52.8
Exceptional items related to Russia-Ukraine conflict	183.6	(56.2)	127.4

1. References to Russia, Russian operation or Russian cash-generating unit in this Note relate to Multon Partners LLC (formerly LLC Coca-

Cola HBC Eurasia) the Group’s bottler in Russia.

a) Operations in Russia

Recoverability of individual assets in Russia

The Coca-Cola Company announced in March 2022 the suspension of its business in Russia, following

the Russia-Ukraine conflict. In response to this decision, the Group implemented a restructuring plan in

connection with its Russian operation and transitioned to a self-sufficient business model focusing on

local brands. This resulted in pre-tax impairment losses related to buildings, production and cold drink

equipment of €102.1 million during the first half of 2022, which were recorded based on a value-in-use

exercise, reported in line ‘Exceptional items related to Russia-Ukraine conflict’ of the 2022 condensed

consolidated interim income statement and included under Emerging markets for segmental

reporting purposes.

Following June 2022, whilst uncertainty levels remained high in Russia, the Group experienced more

stable market conditions and demand than initially anticipated. As a result, an updated value-in-use

exercise was performed for the Russian operation’s property, plant and equipment, which resulted in

a partial reversal of pre-tax impairment losses recognised during the first half of 2022, amounting to

€42.8 million, considering also foreign currency translation impact. Net impairment losses amounted

to €59.3 million for 2022, relating to buildings, production and cold drink equipment, which were

reported in line ‘Exceptional items related to Russia-Ukraine conflict’ of the 2022 consolidated

income statement and included under Emerging markets for segmental reporting purposes.

During 2023, whilst the conflict with Ukraine is ongoing and thus uncertainty levels remain high in

Russia, no impairment indicator was identified in connection with the assets of the Russian operation,

as market conditions remained relatively stable compared with 2022 and performance under the

new business model was in line with management’s forecasts. The Group is continuously monitoring

developments in the region to ensure recoverability of its assets.

Following the above, property, plant and equipment of the Russian operation represented

approximately 7% of the Group’s total property, plant and equipment as at 31 December 2023

(2022: 8%).

Recoverability of the Russian cash-generating unit, including goodwill

During the first half of 2022, the Group experienced worsening macroeconomic factors in Russia,

as sanctions and other regulations had an adverse impact in the country’s economic environment,

resulting in a material deterioration of the discount rate used to determine the recoverable amount

of the Group’s Russian cash-generating unit. The Group performed an interim impairment test of

the Russian cash-generating unit’s recoverable amount, including goodwill, in June 2022 as part of its

condensed consolidated interim financial statements. As part of that exercise, the recoverable amount

was determined based on value-in-use calculations consistent with those performed under the 2021

annual impairment test methodology, updated to consider management’s revised best estimates of

expected cash flow forecasts and a higher discount rate, reflective of the macroeconomic uncertainty

in Russia. This exercise resulted in pre-tax impairment losses for goodwill and property, plant and

equipment of €13.7 million and €15.0 million respectively, which were recorded in line ‘Exceptional items

related to Russia-Ukraine conflict’ of the 2022 condensed consolidated interim income statement

and included under Emerging markets for segmental reporting purposes.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 200

Notes to the consolidated financial statements continued

6. Russia-Ukraine conflict impact continued

Considering the relevant uncertainty in connection with its new business model in Russia and

volatility in the market, the Group updated the impairment test of its Russian cash-generating unit’s

recoverable amount based on value-in-use calculations consistent with its 2022 annual impairment

test methodology (refer to Note 14), using management’s updated best estimates of expected cash

flow forecasts, taking into account the actual performance of the new business in the year and relevant

market developments as described above. The recoverable amount of the Russian cash-generating

unit resulting from this exercise amounted to approximately €1.1 billion as at 31 December 2022. In the

context of this exercise, it was identified that the recoverable amount exceeded the carrying amount of

the Russian cash-generating unit, resulting in the reversal of €13.4 million pre-tax impairment losses to

property, plant and equipment recognised in June 2022, considering also foreign currency translation

impact. The reversal of the impairment charge was accordingly recorded in line ‘Exceptional items

related to Russia-Ukraine conflict’ in the 2022 consolidated income statement and included under

Emerging markets for segmental reporting purposes.

The following table sets out the key assumptions used in the impairment assessment of the Russian

cash-generating unit for 2022, as well as 2022 interim results:

	2022	2022 interim
Growth rate in perpetuity	4.0%	4.0%
Post-tax discount rate	14.9%	26.5%
Pre-tax discount rate	18.3%	29.2%

The high discount rate used in the 2022 interim results was mainly driven by higher bond yield spreads

due to fears of potential default of Russia’s debt, on the back of the imposed sanctions, which subsided

in the second half of the year, thus resulting in a lower discount rate for 2022 compared with the first

half of the year.

Following the above, the Group’s carrying amount of goodwill and other indefinite-lived intangibles for

its Russian cash-generating unit was €nil as at 31 December 2023 and 2022.

Recoverability of equity method investments

The impact of the Russia-Ukraine conflict on the macroeconomic environment of Russia as described

above, was also considered an impairment indicator by the Group under IAS 36 ‘Impairment of assets’,

in connection with its integral, joint venture investment in Multon AO group of companies (‘Multon’).

Multon is engaged in the production and distribution of juices in Russia and was jointly controlled by the

Group and The Coca-Cola Company. The Group performed an interim impairment test in connection

with its investment in Multon in June 2022 as part of its condensed consolidated interim financial

statements. The recoverable amount of the investment was determined based on a fair value exercise,

considering management’s best estimates of cash flow forecasts for a discrete period of five years.

Cash flows beyond the five-year period were extrapolated using the following estimated growth and

discount rates:

	2022 interim
Growth rate in perpetuity	4.0%
Post-tax rate	28.6%

The recoverable amount of the Group’s investment in Multon resulting from this exercise, which was

classified as a Level 3 fair value measurement, amounted to €174.2 million. This resulted in a pre-tax

impairment loss of €52.8 million, which was recorded in line ‘Exceptional items related to Russia-

Ukraine conflict’ in the 2022 consolidated income statement and included under Emerging markets for

segmental reporting purposes.

In August 2022, The Coca-Cola Company unilaterally waived certain of its governance rights in

connection with its 50% interest in Multon. Following this waiver and considering the criteria set

out in IFRS 10 ‘Consolidated financial statements’, the Group has concluded that it controls Multon

and has been accordingly consolidating its financial performance effective from 11 August 2022

(refer to Note 24).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 201

Notes to the consolidated financial statements continued

6. Russia-Ukraine conflict impact continued

b) Operations in Ukraine

As a result of the Russia-Ukraine conflict, operations of the Group’s Ukrainian subsidiary were

temporarily suspended for the period March-April 2022. From May 2022, the Group has resumed

production and distribution of products in Ukraine, where safe to do so. Non-current assets of

Ukraine represented approximately 1% of the Group’s total non-current assets as at 31 December

2023 (2022: 1%). An impairment test of the Ukrainian cash-generating unit, based on a value-in-use

exercise consistent with the Group’s annual impairment testing methodology was performed both for

the purposes of the Group’s condensed consolidated interim financial statements and consolidated

financial statements for 2022 as well as for the purposes of the Group’s consolidated financial

statements for 2023, as it was considered that, whilst operations have resumed, the continued conflict

has resulted in significant changes in the relevant market with an adverse effect in the cash-generating

unit. No impairment was identified as a result of this impairment testing neither in 2022 nor in 2023.

The Group’s carrying amount of goodwill and other indefinite-lived intangibles for its Ukrainian cash-

generating unit was €nil as at 31 December 2023 and 2022.

An amount of €4.4 million losses directly attributable to the Russia-Ukraine conflict, primarily related

to inventory and property, plant and equipment write-offs, were incurred by the Group’s Ukrainian

subsidiary during 2022, of which €3.3 million were recorded in line ‘Operating expenses (excluding

exceptional items related to Russia-Ukraine conflict)’ and €1.1 million in line ‘Cost of goods sold’ of the

consolidated income statement respectively. During 2023, an amount of €0.2 million in connection with

these losses was reversed, as the relevant items of property, plant and equipment were recovered, and

recorded in line ‘Operating expenses (excluding exceptional items related to Russia-Ukraine conflict)’ of

the consolidated income statement.

6.2 Foreign-currency risk

The Group is exposed to the effect of foreign currency risk on future transactions, recognised

monetary assets and liabilities that are denominated in currencies other than the local entity’s

functional currency, as well as net investments in foreign operations. The Group actively manages its

foreign currency risk as described in Note 25 ‘Financial risk management and financial instruments’. The

Russia-Ukraine conflict has, among other things, resulted in increased volatility in currency markets,

especially in connection with the Russian Rouble.

The following tables present details of the Group’s sensitivity to reasonably possible increases and

decreases in the Euro and US Dollar against the Russian Rouble and Ukrainian Hryvnia. In determining

reasonably possible changes, the historical volatility over a 12-month period of the respective

foreign currencies in relation to the Euro and US Dollar has been considered. The sensitivity analysis

determines the potential gains and losses in the income statement or equity arising from the Group’s

foreign exchange positions as a result of the corresponding percentage increases and decreases in the

Group’s 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.

2023 exchange risk sensitivity to reasonably possible changes in Euro against Russian Rouble and

Ukrainian Hryvnia

			Euro strengthens		Euro weakens
		against local currency			against local currency
	% historical	(Gain)/loss		Loss/(gain)
	volatility over a	in income	(Gain)/loss	in income	Loss/(gain)
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Russian Rouble	17.5%	(3.8)	–	5.4	–
Ukrainian Hryvnia	8.4%	2.5	–	(2.9)	–

2023 exchange risk sensitivity to reasonably possible changes in US Dollar against Russian

Rouble and Ukrainian Hryvnia

			US Dollar strengthens		US Dollar weakens
			against local currency	against local currency
	% historical	(Gain)/loss		Loss/(gain)
	volatility over a	in income	(Gain)/loss	in income	Loss/(gain)
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Russian Rouble	15.3%	(8.2)	(0.6)	11.2	0.9
Ukrainian Hryvnia	3.4%	0.3	–	(0.3)	–

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 202

Notes to the consolidated financial statements continued

6. Russia-Ukraine conflict impact continued

2022 exchange risk sensitivity to reasonably possible changes in Euro against Russian Rouble and

Ukrainian Hryvnia

			Euro strengthens		Euro weakens
		against local currency			against local currency
	% historical	(Gain)/loss		Loss/(gain)
	volatility over a	in income	(Gain)/loss	in income	Loss/(gain)
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Russian Rouble	54.5%	(9.4)	(0.1)	31.9	0.2
Ukrainian Hryvnia	12.5%	2.9	–	(3.8)	–

2022 exchange risk sensitivity to reasonably possible changes in US Dollar against Russian Rouble and

Ukrainian Hryvnia

			US Dollar strengthens		US Dollar weakens
			against local currency	against local currency
	% historical	(Gain)/loss		Loss/(gain)
	volatility over a	in income	(Gain)/loss	in income	Loss/(gain)
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Russian Rouble	53.0%	(18.7)	–	61.0	–
Ukrainian Hryvnia	4.1%	(0.1)	–	0.1	–

6.3 Other topics

As a result of sanctions and other regulations, there have been changes in required regulatory

approvals, potentially impacting the transfer and usage of cash outside of Russia. Cash and cash

equivalents held by the Group’s operations in Russia (including Multon) amounted to €278.7 million

equivalent in Russian Rouble, US Dollar and Euro as at 31 December 2023 (2022: €155.3 million). The

aforementioned changes restrict the usage of cash held in Russia outside the country; however, they

are not expected to have a material impact on the Group’s liquidity, as the cash and cash equivalents

held in Russia are expected to be used in the forthcoming financial periods primarily for working capital

purposes in the Russian operations.

The Group is continuously monitoring performance of its Russian and Ukrainian operations as well as

the developments in the region, to ensure timely actions and initiatives are undertaken to minimise

potential adverse impact.

7. Segmental analysis

The Group has essentially one business, being the production, sale and distribution of primarily non-

alcoholic, ready-to-drink, beverages across 29 countries. The Group’s markets are aggregated in

reportable segments as follows:

Established	Austria, Cyprus, Greece, Italy, Northern
markets:	Ireland, the Republic of Ireland, Switzerland
	and Global exports 1 .
Developing	Croatia, Czech Republic, Estonia,
markets:	Hungary, Latvia, Lithuania, Poland,
	Slovakia and Slovenia.
Emerging	Armenia, Belarus, Bosnia and Herzegovina,
markets:	Bulgaria, Egypt, Moldova, Montenegro,
	Nigeria, North Macedonia, Romania, the
	Russian Federation, Serbia (including the
	Republic of Kosovo) and Ukraine.

1. The Global exports market refers to the export business for Finlandia and Three Cents in countries where the Group does not have

operations in connection with non-alcoholic ready-to-drink beverages, established due to the Finlandia acquisition (refer to Note 24).

The Group’s chief operating decision maker is its Executive Leadership Team, which evaluates

performance and allocates resources based on volume, net sales revenue and operating profit. The

Group’s operations in the Established, Developing and Emerging markets 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.

a) Volume and net sales revenue

The Group’s sales volume in million unit cases

for the years ended 31 December was as follows:

	2023	2022
Established	628.7	643.9
Developing	471.0	478.8
Emerging	1,735.8	1,589.1
Total volume	2,835.5	2,711.8

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 203

Notes to the consolidated financial statements continued

7. Segmental analysis continued

Net sales revenue per reportable segment for the years ended 31 December is presented in the

graphs below:

Established	€3,358.5 million
Developing	€2,088.6 million
Emerging	€4,736.9 million

2023

Established	€2,974.1 million
Developing	€1,719.7 million
Emerging	€4,504.6 million

2022

€10,184.0 million

€9,198.4 million

Sales or transfers between the Group’s segments are not material, nor are there any customers that

represent more than 10% of net sales revenue for the Group.

In addition to non-alcoholic, ready-to-drink beverages, as well as coffee and snacks (‘NARTD’), the

Group sells and distributes premium spirits. An analysis of volume and net sales revenue per product

type for the years ended 31 December is presented below:

Volume in million unit cases 2 :	2023	2022
NARTD	2,831.2	2,708.4
Premium spirits	4.3	3.4
Total volume	2,835.5	2,711.8
Net sales revenue in € million:
NARTD	9,886.1	8,956.0
Premium spirits	297.9	242.4
Total net sales revenue	10,184.0	9,198.4

2. One unit case corresponds to approximately 5.678 litres or 24 servings, being a typically used measure of volume. For premium spirits

volume, one unit case also corresponds to 5.678 litres. For biscuits volume, one unit case corresponds to 1 kilogram. For coffee volume,

one unit case corresponds to 0.5 kilograms or 5.678 litres. Volume data is derived from unaudited operational data.

Net sales revenue from external customers attributed to Switzerland (the Group’s country of domicile),

the Russian Federation

, Italy and Nigeria was as follows for the years ended 31 December:

	2023	2022
	€ million	€ million
Switzerland	464.1	426.7
The Russian Federation	1,196.4	1,103.2
Italy	1,231.9	1,096.1
Nigeria	894.4	989.4
All countries other than Switzerland, the Russian Federation, Italy and Nigeria	6,397.2	5,583.0
Total net sales revenue from external customers	10,184.0	9,198.4

3. Net sales revenue from external customers for 2023 includes Multon, the Group’s juice business in Russia; while for 2022, Multon is included

for the period from 11 August 2022 to 31 December 2022 (refer to Note 24).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 204

Notes to the consolidated financial statements continued

7. Segmental analysis continued

b) Other income statement items

		2023	2022
Year ended 31 December	Note	€ million	€ million
Operating profit:
Established		379.2	310.4
Developing		152.6	113.1
Emerging		421.8	280.3
Total operating profit		953.6	703.8
Finance costs:
Established		(16.4)	(15.6)
Developing		(19.5)	(18.1)
Emerging		(52.3)	(55.0)
Corporate		(141.3)	(118.7)
Inter-segment finance cost		125.5	111.5
Total finance costs	10	(104.0)	(95.9)
Finance income:
Established		3.0	2.4
Developing		2.4	1.0
Emerging		30.1	19.0
Corporate		145.7	102.3
Inter-segment finance income		(125.5)	(111.5)
Total finance income	10	55.7	13.2

		2023	2022
Year ended 31 December	Note	€ million	€ million
Income tax expense:
Established		(82.2)	(75.7)
Developing		(32.5)	(28.5)
Emerging		(140.1)	(80.5)
Corporate		(19.8)	(23.3)
Total income tax expense	11	(274.6)	(208.0)
Reconciling items:
Share of results of non-integral equity method investments	16	5.0	2.5
Profit after tax		635.7	415.6

4. Corporate refers to holding, finance and other non-operating subsidiaries of the Group.

Depreciation and impairment of property, plant and equipment and amortisation and impairment

of intangible assets included in the measure of operating profit are as follows:

		2023	2022
	Note	€ million	€ million
Depreciation and impairment of property, plant and equipment:
Established		(112.7)	(96.4)
Developing		(68.8)	(57.8)
Emerging		(218.4)	(330.7)
Total depreciation and impairment of property, plant and equipment	15, 17	(399.9)	(484.9)
Amortisation and impairment of intangible assets:
Developing		(3.7)	(0.6)
Emerging		(110.2)	(14.5)
Total amortisation and impairment of intangible assets	14	(113.9)	(15.1)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 205

Notes to the consolidated financial statements continued

7. Segmental analysis continued

c) Other items

The balance of non-current assets

attributed to Switzerland (the Group’s country of domicile), Egypt,

Italy and Nigeria was as follows for the years ended 31 December:

	2023	2022
	€ million	€ million
Switzerland	636.3	596.0
Egypt	402.3	615.7
Italy	1,170.0	1,137.4
Nigeria	390.0	744.7
All countries other than Switzerland, Egypt, Italy and Nigeria	3,255.1	2,946.0
Total non-current assets 5	5,853.7	6,039.8

5. Excluding other financial assets, deferred tax assets, pension plan assets and trade and loans receivable.

Expenditure on property, plant and equipment per reportable segment was as follows for the years

ended 31 December:

	2023	2022
	€ million	€ million
Established	166.0	154.1
Developing	89.5	75.7
Emerging	367.5	302.0
Total expenditure of property, plant and equipment	623.0	531.8

6. Expenditure on property, plant and equipment for 2023 includes €12.3 million (2022: €8.4 million) relating to repayment of borrowings

undertaken to finance the purchase of production equipment by the Group’s subsidiary in Nigeria, classified as ‘Repayments of borrowings’

in the consolidated cash flow statement.

8. Net sales revenue

Accounting policy

The Group essentially produces, sells and distributes primarily non-alcoholic, ready-to-drink

beverages. Under IFRS 15 ‘Revenue from contracts with customers’, the Group recognises revenue

when control of the products is transferred, being when the products are delivered to the customer.

Net sales revenue is measured at the fair value of the consideration received or receivable and is

stated net of sales discounts and consideration paid to customers. These mainly take the form of

promotional incentives and are amortised over the terms of the related contracts as a deduction

in revenue.

The Group provides volume rebates to customers once the quantity of goods purchased during

the period exceeds a threshold specified in the contract. To estimate the variable consideration

for the expected future rebates the Group uses the most likely amount method and the amount is

recognised in net sales revenue only to the extent that it is highly probable that a significant reversal

in the amount of cumulative revenue recognised will not occur when the uncertainty associated with

the variable consideration is subsequently resolved.

A contract liability is recognised if a payment is received or a payment is due (whichever is earlier)

from a customer before the Group transfers the related goods. Contract liabilities are recognised as

revenue when the Group performs under the contract (i.e., transfers control of the related goods to

the customer).

Net sales revenue includes excise and other duties where the Group acts as a principal but excludes

amounts collected by third parties such as value-added taxes as these are not included in the

transaction price. The Group assesses these taxes and duties on a jurisdiction-by-jurisdiction basis

to conclude on the appropriate accounting treatment.

Revenue recognised in 2023 that was included in the contract liability balance at the beginning of the

year amounted to €14.4 million (2022: €11.6 million). For contract liabilities as at 31 December 2023 and

2022, refer to Note 21.

For an analysis of net sales revenue per reportable segment, refer to Note 7.

For the contributions received from The Coca-Cola Company, which are offset against consideration

paid to customers, refer to Note 28.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 206

Notes to the consolidated financial statements continued

9. Operating expenses

Operating expenses for the year ended 31 December comprised:

	2023	2022
	€ million	€ million
Selling expenses	1,144.4	1,045.7
Delivery expenses	744.5	698.8
Administrative expenses	709.3	518.5
Restructuring expenses	9.0	11.9
Acquisition and integration costs (refer to Note 24)	6.3	79.7
Operating expenses (excluding exceptional items related to Russia- Ukraine conflict)	2,613.5	2,354.6
Exceptional items relating to Russia-Ukraine conflict (refer to Note 6)	–	127.4
Operating expenses	2,613.5	2,482.0

In 2023, operating expenses included a net gain on disposals of non-current assets of €1.3 million

(2022: €1.5 million net loss).

For the contributions received from The Coca-Cola Company, which are offset against expenses for

general marketing programmes, refer to Note 28.

a) Restructuring expenses

Accounting policy

Restructuring expenses are recorded in a separate line item within operating expenses and

comprise costs arising from significant changes in the way the Group conducts its business such

as significant supply chain infrastructure changes, outsourcing of activities and centralisation of

processes. Restructuring provisions are recognised only when the Group has a present constructive

obligation, which is when a detailed formal plan identifies the business or part of the business

concerned, the location, function and number of employees affected, a detailed estimate of the

associated costs, and an appropriate timeline as well as when the employees affected have been

notified of the plan’s main features.

As part of the effort to optimise its cost base and sustain competitiveness in the marketplace,

the Company undertakes restructuring initiatives. The restructuring expenses consist mainly of

employees’ termination benefits. Restructuring expenses per reportable segment for the years ended

31 December are presented below:

	2023	2022
	€ million	€ million
Established	0.9	(6.1)
Developing	1.1	(1.5)
Emerging	7.0	19.5
Total restructuring expenses	9.0	11.9

b) Employee costs

Employee costs for the years ended 31 December comprised:

	2023	2022
	€ million	€ million
Wages and salaries	910.8	877.6
Social security costs	147.4	163.6
Pension and other employee benefits	178.3	147.6
Termination benefits	12.1	15.1
Total employee costs	1,248.6	1,203.9

The average number of full-time equivalent employees in 2023 was 32,747 (2022: 33,043).

Employee costs for 2023 included in operating expenses and cost of goods sold amounted to

€940.9 million and €307.7 million respectively (2022: €906.9 million and €297.0 million respectively).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 207

9. Operating expenses continued

c) Directors’ and senior management’s remuneration

The total remuneration paid or accrued for Directors and the senior management team for the years

ended 31 December comprised:

	2023	2022
	€ million	€ million
Salaries and other short-term benefits	20.4	19.3
Performance share awards	9.3	8.0
Pension and post-employment benefits	0.9	1.0
Total remuneration	30.6	28.3

d) Auditor fees

Audit and other fees charged in the income statement concerning the auditor of the consolidated

financial statements, PricewaterhouseCoopers S.A. and affiliates, were as follows, for the years ended

31 December:

	2023	2022
	€ million	€ million
Audit fees	5.3	5.1
Audit-related fees	1.0	1.1
Other fees	0.1	–
Total audit and audit-related fees	6.4	6.2

Fees for audit services to firms other than PricewaterhouseCoopers S.A. and affiliates were €0.6 million

for the year ended 31 December 2023 (2022: €0.7 million).

Notes to the consolidated financial statements continued

10. Finance costs, net

Accounting policy

Interest income and interest expense are recognised using the effective interest rate method,

and are recorded in the income statement within ‘Finance income’ and ‘Finance cost’ respectively.

Interest expense includes finance charges with respect to leases, reclassification of the loss on

the forward starting swaps and the net impact from swaptions recorded in other comprehensive

income (refer to Note 25).

Finance costs, net for the years ended 31 December comprised:

	2023	2022
	€ million	€ million
Finance income	55.7	13.2
Interest expense	(86.3)	(77.8)
Other finance costs	(1.8)	(2.1)
Net foreign exchange remeasurement losses	(15.9)	(16.0)
Finance costs	(104.0)	(95.9)
Finance costs, net	(48.3)	(82.7)

Other finance costs include commitment fees on loan facilities (for the part not yet drawn down) and

other similar fees. Finance income relates to interest income earned from financial assets that are held

for cash management purposes as well as gain recognised from the fair value measurement of money

market funds.

For the interest expense incurred with respect to leases, refer to Note 17.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 208

Notes to the consolidated financial statements continued

11. 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 the countries where the Group operates and generates taxable

income. Management periodically evaluates positions taken in tax returns with respect to situations

in which applicable tax regulations are subject to interpretation and establishes provisions where

appropriate, on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is provided using the liability method for all temporary differences arising between

the tax bases of assets and liabilities and their carrying values for financial reporting purposes.

However, the deferred tax liabilities are not recognised if they arise from the initial recognition of

goodwill. Deferred tax is not accounted for if it arises from initial recognition of an asset or liability in

a transaction other than a business combination that at the time of the transaction affects neither

accounting nor taxable profit or loss. Tax rates enacted or substantively enacted at the balance

sheet date are those that are expected to apply when the deferred tax asset is realised or deferred

tax liability is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will

be available against which the temporary differences can be utilised. Deferred tax assets are

recognised for tax losses carried forward to the extent that realisation of the related tax benefit

through the reduction of the future taxes is probable.

Deferred tax is provided on temporary differences arising on investments in subsidiaries,

associates and joint ventures, except where the timing of the reversal of the temporary difference

can be controlled by the Group, and it is probable that the temporary difference will not 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.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to offset

current tax assets against current income tax liabilities and the deferred taxes relate to the same

taxation authority on either the same taxable entity or different taxable entities where there is an

intention to settle the balances on a net basis.

The income tax charge for the years ended 31 December was as follows:

	2023	2022
	€ million	€ million
Current tax expense	273.5	235.6
Deferred tax expense/(income)	1.1	(27.6)
Income tax expense	274.6	208.0

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the

weighted average tax rate applicable to profits of the consolidated entities as follows:

	2023	2022
	€ million	€ million
Profit before tax	910.3	623.6
Tax calculated at domestic tax rates applicable to profits in the respective
countries	178.8	162.1
Additional local taxes in foreign jurisdictions	28.2	18.8
Tax holidays in foreign jurisdictions	5.4	(0.2)
Expenses non-deductible for tax purposes	49.6	28.6
Income not subject to tax	(0.3)	(3.6)
Changes in tax laws and rates	(3.2)	0.4
Movement of accumulated tax losses	5.4	2.9
Movement of deferred tax asset not recognised	–	0.1
Other	10.7	(1.1)
Income tax expense	274.6	208.0
Effective tax rate	30.2%	33.4%

Non-deductible expenses for tax purposes include marketing and advertising expenses, service fees,

loss allowance on trade receivables, entertainment expenses, certain employee benefits and other

items that, partially or in full, are not deductible for tax purposes in certain of the Group’s jurisdictions.

The Group’s effective tax rate varies depending on the mix of taxable profits by territory, the non-

deductibility of certain expenses, non-taxable income, and other one-off tax items across its

territories. The changes in applicable tax rates compared to the previous period are driven by a

combination of blended tax rates and changes in the standard corporate tax rate in certain territories of

the Group (namely Austria, Belarus, Czech Republic, Italy, Northern Ireland, Slovenia and Switzerland).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 209

Notes to the consolidated financial statements continued

11. Taxation continued

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 final tax outcome on these matters is different from the amounts that were initially recorded,

such differences will impact the income tax provision in the period in which such determination is

made; however, based on past experience, management expects that any such differences in the next

financial year will be immaterial for the Group. The income tax provision amounted to €82.8 million as at

31 December 2023 (2022: €67.5 million), of which €72.9 million (2022: €67.2 million) are classified in line

‘Current tax liabilities’, €0.3 million (2022: €0.3 million) in line ‘Current tax assets’ and €9.6 million (2022:

€nil) in line ‘Deferred tax liabilities’ of the consolidated balance sheet.

The income tax provision per reportable segment for the years ended 31 December was as follows:

	2023	2022
	€ million	€ million
Established	14.8	18.2
Developing	14.3	14.3
Emerging	45.2	25.4
Corporate	8.5	9.6
Total income tax provision	82.8	67.5

1. Corporate refers to holding, finance and other non-operating subsidiaries of the Group.

OECD Pillar Two model rules

The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework

on Base Erosion and Profit Shifting published the Pillar Two model rules designed to address the tax

challenges arising from the digitalisation of the global economy. Under Pillar Two legislation, the Group

may be liable to pay a top-up tax for the difference between their Global Anti-Base Erosion (‘GloBE’)

effective tax rate per jurisdiction and the 15% minimum rate

As of 31 December 2023, Pillar Two

legislation has been enacted or substantively enacted in certain

jurisdictions in which the Group has presence. In particular, Pillar Two legislation was enacted or

substantively enacted in Austria, Bulgaria, Croatia, Czech Republic, Finland, Hungary, Republic

of Ireland, Italy, the Netherlands, Romania, Slovakia, Slovenia, Switzerland and Northern Ireland.

Further countries in which the Group has presence have introduced draft legislation or declared

their intention to introduce Pillar Two legislation.

The legislation will be effective for the Group’s financial year beginning 1 January 2024. Since the Pillar

Two legislation was not effective at the reporting date, the Group has no related current tax exposure.

In May 2023, the IASB amended IAS 12 to provide timely relief for affected entities, to avoid diverse

interpretations of IAS 12 and to improve disclosures. The amendments have introduced a temporary

exception to the requirements to recognise and disclose information about deferred tax assets and

liabilities related to Pillar Two income taxes as well as additional disclosure requirements. The Group

applied the temporary exception at 31 December 2023.

The Group has performed a preliminary assessment of its potential exposure to Pillar Two income

taxes, following the transitional Pillar Two Safe Harbor rules. This assessment is based on the financial

accounts of the Constituent Entities

which have been used in the preparation of the Group’s

consolidated financial statements under IFRS as adopted by the EU for 2021, 2022 and 2023. The

assessment considers all countries in which the Group has presence and involves the assessment

of whether a local additional tax liability or a tax liability at the level of the respective holding entity is

expected to arise.

Based on the Group’s assessment, it is expected that no additional tax liability will arise in most of the

Group’s jurisdictions; however, there is a limited number of jurisdictions where the Pillar Two effective

tax rate may be lower than 15%, namely Bulgaria, Kosovo, Bosnia and Herzegovina, Republic of Ireland,

Moldova and Romania. While the effective tax rates in 2024 will depend on factors such as revenues,

costs and foreign currency exchange rates, an estimation based on the figures of the fiscal year 2023

indicates that, had the Pillar Two legislation been effective for the year ended 31 December 2023, the

effective tax rate under IFRS would have been approximately 0.5% higher than the reported effective

tax rate of 30.2%. On this basis, the impact of any Pillar Two additional tax liability to the Group’s

effective tax rate for 2024 is not expected to be material.

1. The top-up tax is calculated on the GloBE income after deduction of the Substance Based Excluded Income (i.e. after deducting part of

the income calculated based on the local personnel costs and local tangible assets as per Pillar Two rules).

2. Pillar Two legislation refers to OECD Global Base Anti-Erosion Rules (OECD GloBE Rules) introducing minimum taxation effective on

low-tax jurisdictions.

3. Constituent Entities are the entities in scope of the Pillar Two rules, i.e. entities included in the financial statements with full consolidation

and certain joint ventures to which CCHBC Group participates with a 50% ownership share.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 210

Notes to the consolidated financial statements continued

11. Taxation continued

Deferred tax assets and liabilities presented in the consolidated balance sheet as at 31 December, can

be further analysed as follows:

Deferred tax assets:

	2023	2022
	€ million	€ million
To be recovered after 12 months	52.2	62.6
To be recovered within 12 months	92.3	73.7
Gross deferred tax assets	144.5	136.3
Offset of deferred tax	(103.0)	(98.8)
Net deferred tax assets	41.5	37.5
Deferred tax liabilities:
To be recovered after 12 months	(329.8)	(339.6)
To be recovered within 12 months	(23.5)	(23.8)
Gross deferred tax liabilities	(353.3)	(363.4)
Offset of deferred tax	103.0	98.8
Net deferred tax liabilities	(250.3)	(264.6)

A reconciliation of net deferred tax is presented below:

	2023	2022
	€ million	€ million
As at 1 January	(227.1)	(166.7)
Taken to the income statement	(1.1)	27.6
Arising from business combinations (refer to Note 24)	(28.0)	(128.1)
Taken to other comprehensive income	(1.1)	(2.1)
Taken directly to equity	4.9	9.9
Foreign currency translation	43.6	32.3
As at 31 December	(208.8)	(227.1)

The movements in deferred tax assets and liabilities during the year, without taking into consideration

the offsetting of balances within the same tax jurisdiction where applicable, are as follows:

			Tax losses	Book in		Other
		Pensions and	carry-	excess of tax		deferred tax
	Provisions	benefit plans	forward	depreciation	Leasing	assets
Deferred tax assets	€ million	€ million	€ million	€ million	€ million	€ million	Total
As at 1 January 2022	33.5	11.3	1.8	3.4	23.8	30.6	104.4
Taken to the income statement	7.8	1.5	10.0	2.5	6.6	6.8	35.2
Arising from business
combinations (refer to Note 24)	0.1	–	–	–	0.5	10.6	11.2
Taken to other comprehensive income	–	(2.0)	–	–	–	0.7	(1.3)
Other movements and foreign
currency translation	(0.6)	–	(5.2)	(0.4)	(0.3)	(6.7)	(13.2)
As at 31 December 2022	40.8	10.8	6.6	5.5	30.6	42.0	136.3
Taken to the income statement	(6.5)	2.7	1.5	(0.7)	5.6	6.1	8.7
Arising from business
combinations (refer to Note 24)	–	–	11.2	–	1.3	0.8	13.3
Taken to other comprehensive income	–	0.8	–	–	–	0.8	1.6
Other movements and foreign
currency translation	(17.7)	0.8	(0.3)	–	(4.3)	6.1	(15.4)
As at 31 December 2023	16.6	15.1	19.0	4.8	33.2	55.8	144.5

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 211

Notes to the consolidated financial statements continued

11. Taxation continued

	Tax in excess		Other
	of book	Derivative	deferred tax
	depreciation	instruments	liabilities	Total
Deferred tax liabilities	€ million	€ million	€ million	€ million
As at 1 January 2022	(249.4)	(4.2)	(17.5)	(271.1)
Taken to the income statement	19.8	(3.3)	(24.1)	(7.6)
Arising from business combinations
(refer to Note 24)	(137.7)	(0.7)	(0.9)	(139.3)
Taken to other comprehensive income	–	(4.6)	3.8	(0.8)
Taken directly to equity	–	9.9	–	9.9
Other movements and foreign currency
translation	34.5	(0.1)	11.1	45.5
As at 31 December 2022	(332.8)	(3.0)	(27.6)	(363.4)
Taken to the income statement	(5.8)	(0.4)	(3.6)	(9.8)
Arising from business combinations
(refer to Note 24)	–	–	(41.3)	(41.3)
Taken to other comprehensive income	–	(3.8)	1.1	(2.7)
Taken directly to equity	–	4.9	–	4.9
Other movements and foreign
currency translation	61.7	(0.1)	(2.6)	59.0
As at 31 December 2023	(276.9)	(2.4)	(74.0)	(353.3)

Deferred tax assets recognised for tax losses carry-forward in accordance with the relevant local rules

applying in the Group’s jurisdictions can be analysed as follows:

	2023	2022
	€ million	€ million
Attributable to tax losses that expire within five years	5.8	2.1
Attributable to tax losses that expire after five years	11.2	–
Attributable to tax losses that can be carried forward indefinitely	2.0	4.5
Recognised deferred tax assets attributable to tax losses	19.0	6.6

The Group has unrecognised deferred tax assets attributable to tax losses that are available to

carry forward against future taxable income of €28.6 million (2022: €29.1 million). These are analysed

as follows:

	2023	2022
	€ million	€ million
Attributable to tax losses that expire within five years	21.7	18.7
Attributable to tax losses that expire after five years	6.9	10.4
Unrecognised deferred tax assets attributable to tax losses	28.6	29.1

The aggregate amount of distributable reserves arising from the realised earnings of the Group’s

operations was €3,871.2 million in 2023 (2022: €3,574.8 million). No deferred tax liabilities have been

recognised on such reserves given that their distribution is controlled by the Group, or in the event of

plans to remit overseas earnings of subsidiaries, such distribution would not give rise to a tax liability.

12. Earnings per share

Accounting policy

Basic earnings per share is calculated by dividing the net profit attributable to the owners of the

parent by the weighted average number of 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 year is in excess of the exercise

price of the stock option and which create a dilutive effect.

The calculation of the basic and diluted earnings per share attributable to the owners of the parent

entity is based on the following data:

	2023	2022
Net profit attributable to the owners of the parent (€ million)	636.5	415.4
Weighted average number of ordinary shares for the purposes of basic
earnings per share (million)	367.8	366.4
Effect of dilutive stock options on number of shares (million)	0.5	0.5
Weighted average number of ordinary shares for the purposes of diluted
earnings per share (million)	368.3	366.9
Basic earnings per share (€)	1.73	1.13
Diluted earnings per share (€)	1.73	1.13

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 212

Notes to the consolidated financial statements continued

13. Components of other comprehensive income

The components of other comprehensive income for the years ended 31 December comprise:

		2023			2022
	Before tax	Income tax	Net of tax	Before tax	Income tax	Net of tax
	€ million	€ million	€ million	€ million	€ million	€ million
Cost of hedging (refer to Note 25)	(7.1)	–	(7.1)	(3.5)	–	(3.5 )
Cash flow hedges (refer to Note 25)	19.7	(3.0)	16.7	34.6	(3.9)	30.7
Foreign currency translation losses	(484.6)	–	(484.6)	(252.6)	–	(252.6 )
Valuation gain/(loss) on equity
investments at fair value through other comprehensive income	0.4	(0.1)	0.3	(0.1)	–	(0.1 )
Actuarial (losses)/gains	(16.4)	2.0	(14.4)	26.0	1.8	27.8
Share of other comprehensive (loss)/
income of equity method investments	(11.7)	–	(11.7)	34.2	–	34.2
Reclassification of share of other comprehensive income of equity method
investments to the income statement, arising from business combinations
(refer to Note 24)	–	–	–	145.2	–	145.2
Other comprehensive loss	(499.7)	(1.1)	(500.8)	(16.2)	(2.1)	(18.3 )

The foreign currency translation losses for 2023 primarily related to the Nigerian Naira, the Russian

Rouble and the Egyptian Pound, while the losses from the foreign currency translation for 2022

primarily related to the Egyptian Pound and the Russian Rouble.

14. Intangible assets

Accounting policy

Intangible assets consist of goodwill, franchise agreements, trademarks and water rights. Goodwill

and other indefinite-lived intangible assets are carried at cost less accumulated impairment losses,

while intangible assets with finite lives are amortised over their useful economic lives. The useful

lives, both finite and indefinite, assigned to intangible assets are evaluated on an annual basis.

Intangible assets with indefinite lives (‘not subject to amortisation’)

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, given the Group’s strategic relationship with The Coca-Cola Company

and consistent with past experience, the Group believes that franchise agreements will continue

to be renewed at each expiration date with no significant costs. The Group has concluded that the

franchise agreements are perpetual in nature and they have therefore been assigned indefinite

useful lives.

The Group’s trademarks are assigned an indefinite useful life when they have an established sales

history in the applicable region, it is the intention of the Group to receive a benefit from them

indefinitely and there is no indication that this will not be the case.

Goodwill and other indefinite-lived intangible assets are tested for impairment annually and

whenever there is an indication of impairment.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 213

Notes to the consolidated financial statements continued

14. Intangible assets continued

For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating

units expected to benefit from the business combination in which the goodwill arose. Other

indefinite-lived intangible assets are also allocated to the Group’s cash-generating units expected

to benefit from those intangibles. The cash-generating units (‘unit’) to which goodwill and other

indefinite-lived intangible assets have been allocated are tested for impairment annually, or more

frequently when there is an indication 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 cash-generating unit is less

than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying

amount of any goodwill allocated to the unit and then pro-rata to the other assets of the unit on

the basis of the carrying amount of each asset in the unit. Impairment losses recognised against

goodwill are not reversed in subsequent periods.

Intangible assets with finite lives

Intangible assets with finite lives mainly consist of water rights and certain brands, are amortised

over their useful economic lives and are carried at cost less accumulated amortisation and

impairment losses. Intangible assets with finite lives are reviewed for impairment whenever

events or changes in circumstances indicate that the carrying amount may not be recoverable.

Critical accounting estimates

Determining whether goodwill or indefinite-lived intangible assets are impaired requires an

estimation of the value-in-use of the cash-generating units to which they have been allocated

in order to determine the recoverable amount of the cash-generating units. The value-in-use

calculation requires the Group to estimate the future cash flows expected to arise from the

cash-generating unit, discounted at an appropriate rate. Estimating the discounted future cash

flows involves a significant degree of uncertainty. The value-in-use estimation is sensitive to the

discount rate used as well as the perpetuity growth rates used for extrapolation purposes. The key

assumptions used to determine the recoverable amount for the different cash-generating units,

including a sensitivity analysis where possible changes to these key assumptions could eliminate the

remaining headroom, are disclosed and further explained below under ‘Annual impairment test for

goodwill and other indefinite-lived intangible assets’ section.

The movements in intangible assets by classes of assets during the year are as follows:

				Other
		Franchise		intangible
	Goodwill	agreements	Trademarks	assets	Total
	€ million	€ million	€ million	€ million	€ million
Cost
As at 1 January 2022	1,941.7	144.8	137.3	17.9	2,241.7
Arising from business combinations (refer to Note 24)	220.1	367.7	83.4	–	671.2
Impairment (refer to Note 6)	(13.7)	–	–	–	(13.7)
Foreign currency translation	(39.7)	(116.7)	(0.5)	–	(156.9)
As at 31 December 2022	2,108.4	395.8	220.2	17.9	2,742.3
Amortisation
As at 1 January 2022	182.4	–	7.6	8.4	198.4
Charge for the year	–	–	0.5	0.9	1.4
As at 31 December 2022	182.4	–	8.1	9.3	199.8
Net book value as at 1 January 2022	1,759.3	144.8	129.7	9.5	2,043.3
Net book value as at 31 December 2022	1,926.0	395.8	212.1	8.6	2,542.5
Cost
As at 1 January 2023	2,108.4	395.8	220.2	17.9	2,742.3
Arising from business combinations (refer to Note 24)	7.4	–	197.0	–	204.4
Impairment	(110.5)	–	–	(2.0)	(112.5)
Foreign currency translation	(2.1)	(62.0)	(0.3)	–	(64.4)
As at 31 December 2023	2,003.2	333.8	416.9	15.9	2,769.8
Amortisation
As at 1 January 2023	182.4	–	8.1	9.3	199.8
Charge for the year	–	–	0.5	0.9	1.4
As at 31 December 2023	182.4	–	8.6	10.2	201.2
Net book value as at 1 January 2023	1,926.0	395.8	212.1	8.6	2,542.5
Net book value as at 31 December 2023	1,820.8	333.8	408.3	5.7	2,568.6

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 214

Notes to the consolidated financial statements continued

14. Intangible assets continued

Impairment losses of €13.7 million in 2022 relate to the impairment of goodwill in connection with the

Group’s Russian cash-generating unit (refer to Note 6).

In 2023, the Group recognised an impairment loss of €3.1 million in connection with its self-serve coffee

vending business in Poland (the ‘Costa Express Business’), as the recoverable amount was lower than

the carrying amount. The recoverable amount was determined based on value-in-use calculations,

considering management’s best estimates of future cash flows expected to arise from the business,

discounted at a rate of 7.7%. The impairment was driven mainly by a change in expectations regarding

scope and duration of a contract with a key customer. The impairment loss was allocated to goodwill

(€1.1 million) and other finite-lived intangible assets (€2.0 million), and was included in line ‘Operating

expenses’ of the consolidated income statement and under Developing markets for segmental

allocation purposes.

In addition, impairment losses of €109.4 million in 2023 relate to the impairment of goodwill of the

Group’s Egyptian cash-generating unit. For details on the impairment testing of the Group’s Egyptian

cash-generating unit, refer to section ‘Annual impairment test for goodwill and other indefinite-lived

intangible assets’ below.

Intangible assets not subject to amortisation amounted to €2,559.0 million (2022: €2,529.7 million), and

are presented in the charts below:

Goodwill	€1,820.8 million
Franchise agreements	€333.8 million
Trademarks	€404.4 million

2023

Goodwill	€1,926.0 million
Franchise agreements	€395.8 million
Trademarks	€207.9 million

2022

€2,559.0 million

€2,529.7 million

The carrying value of intangible assets subject to amortisation amounted to €9.6 million

(2022: €12.8 million) and comprised water rights of €5.3 million, trademarks of €3.9 million and

other intangible assets of €0.4 million (2022: €6.0 million water rights, €4.2 million trademarks and

€2.6 million other intangible assets).

Annual impairment test for goodwill and other indefinite-lived intangible assets

The recoverable amount of each cash-generating unit was determined through a value-in-use

calculation. This calculation uses cash flow forecasts based on financial budgets approved by the Board

of Directors covering a one-year period and cash flow forecasts for four additional years. Cash flows for

years two to five are forecasted by management based on operation and market-specific assumptions

including growth rates, forecast selling prices, direct costs and operating expenses. Management

determined gross margins based on past performance, expectations for the development of the

market and expectations about raw materials’ costs. Cash flows for the subsequent years after the

forecast period are extrapolated using perpetuity growth rates which reflect management’s best

estimate of industry growth, considering long-term inflation and gross domestic product forecasts

specific to the countries of operation. The discount rates used by management represent the current

market assessment of the risks specific to each cash-generating unit, taking into consideration the

time value of money and are derived from the weighted average cost of capital. The Group applies

post-tax discount rates to post-tax cash flows as the valuation calculated using this method closely

approximates to applying pre-tax discount rates to pre-tax cash flows.

Management also considered the potential adverse impact to future cash flows arising from climate

change risk, under different scenarios. These scenarios included the increased capital expenditure

required to mitigate climate-related risks and focused on the impact from disruptions to production

and distribution due to extreme weather as well as the increased cost of water and carbon emissions.

The Group will continue to refine its approach on climate-related risks and opportunities in the

impairment assessment, as greater understanding of the potential impacts on the Group’s business

is obtained.

Except for the impairment in the goodwill of the Egyptian cash-generating unit analysed below, no

further impairment of goodwill and other indefinite-lived assets was identified during the annual

impairment test of 2023.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 215

Notes to the consolidated financial statements continued

14. Intangible assets continued

The following chart and accompanying table set forth the percentage and carrying value respectively

of goodwill and other indefinite-lived intangible assets for those cash-generating units whose carrying

value is greater than or equal to 9% of the total, as at 31 December 2023.

Intangible assets not

subject to amortisation as

at 31 December 2023

(%)

Italy	30%
Switzerland	19%
The Republic of Ireland	10%
and Northern Ireland
Koncern Bambi a.d. Požarevac	9%
All other cash-generating units 32%

		Franchise
	Goodwill	agreements	Trademarks	Total
	€ million	€ million	€ million	€ million
Italy	640.9	126.9	–	767.8
Switzerland	492.1	–	–	492.1
The Republic of Ireland and Northern Ireland	245.8	–	–	245.8
Koncern Bambi a.d.
Požarevac	115.4	–	118.7	234.1
All other cash-generating
units	326.6	206.9	285.7	819.2
Total	1,820.8	333.8	404.4	2,559.0

The key assumptions for these cash-generating units are presented below:

	Growth rate in			Post-tax discount	Pre-tax discount
	perpetuity (%)			rate (%)	rate (%)
	2023	2022	2023	2022	2023	2022
Italy	2.0	2.0	8.4	8.6	11.5	11.4
Switzerland	0.8	0.8	6.5	6.7	7.8	8.0
The Republic of Ireland and Northern Ireland	4.0	4.0	6.4	6.6	7.0	7.1
Koncern Bambi a.d. Požarevac	4.5	4.5	9.3	10.9	10.2	11.9

For the cash-generating units of the Republic of Ireland and Northern Ireland and Koncern Bambi a.d.

Požarevac, the growth rate in perpetuity as estimated by management was higher than that expected

for the industry in general. This is attributable to the strength of the Group’s brand portfolio, which

is amongst the strongest and broadest in the industry. The Group has historically achieved higher

revenue growth than the industry leveraging the strength of its portfolio, while it continually invests

in brand-related innovations to remain relevant, be able to cater to all consumption occasions and

increase market share.

Impairment of Egyptian cash-generating unit

We disclosed in our 2022 Integrated Annual Report that in the cash-generating unit (‘unit’) of Egypt,

reasonably possible changes in key assumptions of the 2022 impairment test would remove the

remaining headroom. During 2023, we experienced worsening macroeconomic factors in the country,

with inflation persisting at record-high levels, more than double the upper bound of the Central Bank of

Egypt’s target band, and increasing risk of foreign currency crisis due to low reserves, while geopolitical

tensions in the Middle East negatively impacted the financial performance of the unit in late 2023.

The Group performed its annual impairment test in 2023, which resulted in an impairment loss for

its Egyptian unit of €109.4 million, as the recoverable amount was lower than the carrying amount

of the unit. The recoverable amount was determined based on value-in-use calculations consistent

with those performed in 2022, updated to consider management’s best estimates of expected cash

flows and a higher discount rate, reflective of the increased macroeconomic uncertainty in Egypt, as

discussed above. The impairment loss was allocated in its entirety to reduce the carrying amount of

goodwill allocated to the unit and was included in line ‘Operating expenses’ of the consolidated income

statement and under Emerging markets for segmental allocation purposes.

The following table sets out the key assumptions used in the impairment assessment of the Egyptian unit:

	December 2023	December 2022
Growth rate in perpetuity	5.0%	5.0%
Post-tax discount rate	17.4%	15.2%
Pre-tax discount rate	20.8%	17.8%

As at 31 December 2023, the recoverable amount of the Egyptian unit was approximately €340 million.

The Group continues to closely monitor its Egyptian unit in order to ensure that timely actions and

initiatives are undertaken to minimise potential adverse impacts on its expected performance.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 216

Notes to the consolidated financial statements continued

15. 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 impairment losses. Subsequent expenditure is added to the

carrying value of the asset when it is probable that future economic benefits, in excess of the original

assessed standard of performance of the existing asset, will flow to the operation and the costs

can be measured 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 made available for use.

Depreciation is calculated on a straight-line basis to allocate the depreciable amount over the

estimated useful life of the assets as follows:

Freehold buildings and improvements	40 years
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
Marketing equipment	3 to 10 years
Fixtures and fittings	8 years
Returnable containers	3 to 12 years

Freehold land is not depreciated as it is considered to have an indefinite life.

Deposits received for returnable containers by customers are accounted for as deposit liabilities

(refer to Note 21).

Residual values and useful lives of assets are reviewed and adjusted if appropriate at each balance

sheet date. Climate change-related risks and relevant mitigation and adaptation actions may impact

the useful lives of property, plant and equipment. The Group monitors the potential impact of

climate change-related risks and associated legislation in the context of its review of the useful lives

and no impact has been identified.

Property, plant and equipment is reviewed for impairment whenever 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 asset’s fair value less cost to sell and its value-in-use. For the

purposes of assessing impairment, assets are grouped at the lowest level of separately identifiable

cash flows.

For the accounting policy regarding right-of-use assets, refer to Note 17 ‘Leases’.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 217

Notes to the consolidated financial statements continued

15. Property, plant and equipment continued

	Land and	Plant and	Returnable	Assets under
	buildings	equipment	containers	construction	Total
	€ million	€ million	€ million	€ million	€ million
Cost
As at 1 January 2022	1,530.0	3,890.6	450.9	159.1	6,030.6
Additions	4.1	143.6	59.8	373.2	580.7
Arising from business combinations (refer to Note 24)	198.5	125.9	4.5	13.5	342.4
Disposals	(5.7)	(141.7)	(10.8)	(1.2)	(159.4)
Reclassified from right-of-use assets	4.2	12.1	–	–	16.3
Reclassified to assets held for sale (refer to Note 20)	–	(0.6)	–	–	(0.6)
Reclassifications	84.5	205.2	–	(289.7)	–
Foreign currency translation	(63.3)	(66.7)	(7.4)	(5.8)	(143.2)
As at 31 December 2022	1,752.3	4,168.4	497.0	249.1	6,666.8
Depreciation and impairment
As at 1 January 2022	552.2	2,534.3	274.1	1.7	3,362.3
Charge for the year	49.9	252.4	38.9	–	341.2
Impairment	19.0	61.0	0.7	0.8	81.5
Disposals	(4.5)	(134.0)	(6.6)	(0.2)	(145.3)
Reclassified from right-of-use assets	1.5	2.3	–	–	3.8
Reclassified to assets held for sale (refer to Note 20)	–	(0.5)	–	–	(0.5)
Foreign currency translation	(5.2)	(30.2)	(3.2)	–	(38.6)
As at 31 December 2022	612.9	2,685.3	303.9	2.3	3,604.4
Net book value as at 31 December 2022 excluding
right-of-use assets	1,139.4	1,483.1	193.1	246.8	3,062.4
Net book value of right-of-use assets as at 31 December 2022	82.7	121.2	–	–	203.9
Net book value as at 31 December 2022	1,222.1	1,604.3	193.1	246.8	3,266.3

	Land and	Plant and	Returnable	Assets under
	buildings	equipment	containers	construction	Total
	€ million	€ million	€ million	€ million	€ million
Cost
As at 1 January 2023	1,752.3	4,168.4	497.0	249.1	6,666.8
Additions	5.5	136.9	74.4	393.4	610.2
Disposals	(7.4)	(145.2)	(17.0)	(1.7)	(171.3)
Reclassified to assets held for sale (refer to Note 20)	(11.7)	(0.4)	–	–	(12.1)
Reclassified from assets held for sale (refer to Note 20)	–	0.6	–	–	0.6
Reclassifications	76.2	249.7	3.7	(329.6)	–
Foreign currency translation	(216.8)	(449.2)	(99.1)	(41.9)	(807.0)
As at 31 December 2023	1,598.1	3,960.8	459.0	269.3	6,287.2
Depreciation and impairment
As at 1 January 2023	612.9	2,685.3	303.9	2.3	3,604.4
Charge for the year	47.2	239.7	39.2	–	326.1
Impairment	1.4	9.8	2.4	1.1	14.7
Disposals	(5.7)	(142.4)	(13.8)	(1.1)	(163.0)
Reclassified to assets held for sale (refer to Note 20)	(8.4)	(0.4)	–	–	(8.8)
Reclassified from assets held for sale (refer to Note 20)	–	0.5	–	–	0.5
Foreign currency translation	(41.7)	(244.1)	(48.4)	–	(334.2)
As at 31 December 2023	605.7	2,548.4	283.3	2.3	3,439.7
Net book value as at 31 December 2023 excluding
right-of-use assets	992.4	1,412.4	175.7	267.0	2,847.5
Net book value of right-of-use assets as at 31 December 2023	105.2	104.4	–	–	209.6
Net book value as at 31 December 2023	1,097.6	1,516.8	175.7	267.0	3,057.1

1. Line ‘Reclassified from right-of-use assets’ for 2022 relates to the reclassification from right-of-use assets to land and buildings and plant

and equipment of €12.5 million on a net book value basis, following the exercise of purchase options included in the lease contracts.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 218

15. Property, plant and equipment continued

Assets under construction at 31 December 2023 include advances for equipment purchases of

€78.6 million (2022: €63.2 million). The depreciation charge for the year, including that for right-of-

use assets (refer to Note 17), recognised in operating expenses and cost of goods sold amounted to

€203.7 million (2022: €209.6 million) and €181.4 million (2022: €193.8 million) respectively.

Impairment of property, plant and equipment and right-of-use assets

In 2022, the Group recorded impairment losses of €1.6 million, €0.9 million and €81.4 million, and

reversals of impairment of €0.6 million, €0.2 million and €1.6 million relating to property, plant and

equipment in the Established, Developing and Emerging segments respectively. Net impairment losses

of €60.9 million, relating to property, plant and equipment in the Emerging segment are included in

the exceptional items related to Russia-Ukraine conflict (refer to Note 6). The impaired assets, being

mainly buildings, production and cold drink equipment, were written down based mainly on value-in-

use calculations.

In 2023, the Group recorded impairment losses of €5.1 million, €3.6 million and €10.4 million, and

reversals of impairment of €nil, €nil and €4.4 million relating to property, plant and equipment in the

Established, Developing and Emerging segments respectively. The impaired assets, being mainly

production equipment and returnable containers, were written down based mainly on value-in-use

calculations. The Group also recorded impairment losses of €0.1 million and reversals of impairment

of €nil relating to right-of-use assets in the Established segment.

16. Interests in other entities

The following are the principal subsidiaries of the Group as at 31 December:

			% of voting rights	% ownership
	Country of registration	2023	2022	2023	2022
Adelink Ltd	Russia	50.0%	50.0%	50.0%	50.0%
AS Coca-Cola HBC Eesti	Estonia	100.0%	100.0%	100.0%	100.0%
Brown-Forman Finland Oy	Finland	100.0%	–	100.0%	–
CC Beverages Holdings II B.V.	The Netherlands	100.0%	100.0%	100.0%	100.0%
CCB Management Services GmbH	Austria	100.0%	100.0%	100.0%	100.0%
CCHBC Armenia CJSC	Armenia	100.0%	100.0%	100.0%	100.0%
CCHBC Bulgaria AD	Bulgaria	99.4%	99.4%	99.4%	99.4%
CCHBC IT Services Limited	Bulgaria	100.0%	100.0%	100.0%	100.0%
CCHBC Reinsurance Designated Activity
Company	Republic of Ireland	100.0%	100.0%	100.0%	100.0%
CCHBC Ventures BV	The Netherlands	100.0%	–	100.0%	–
CCH CirculaRPET S.r.l.	Italy	100.0%	100.0%	100.0%	100.0%
Coca-Cola Beverages Belorussiya	Belarus	100.0%	100.0%	100.0%	100.0%
Coca-Cola Imbuteliere Chisinau SRL	Moldova	100.0%	100.0%	100.0%	100.0%
Coca-Cola Beverages Ukraine Ltd	Ukraine	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Austria GmbH	Austria	100.0%	100.0%	100.0%	100.0%
	Bosnia and
Coca-Cola HBC B-H d.o.o. Sarajevo	Herzegovina	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Česká a Slovensko, s.r.o.
organizačná zložka	Slovakia	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Česko a Slovensko, s.r.o.	Czech Republic	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Cyprus Ltd	Cyprus	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Egypt	Egypt	97.8%	94.7%	97.8%	94.7%
Coca-Cola HBC Finance B.V.	The Netherlands	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Greece S.A.I.C.	Greece	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Holdings B.V.	The Netherlands	100.0%	100.0%	100.0%	100.0%

Notes to the consolidated financial statements continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 219

16. Interests in other entities continued

			% of voting rights	% ownership
	Country of registration	2023	2022	2023	2022
Coca-Cola HBC Hrvatska d.o.o.	Croatia	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Hungary Ltd	Hungary	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Ireland Limited	Republic of Ireland	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Italia S.r.l.	Italy	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Kosovo L.L.C.	Kosovo	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Northern Ireland Limited	Northern Ireland	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Polska sp. z o.o.	Poland	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Romania Ltd	Romania	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Services MEPE	Greece	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Slovenija d.o.o.	Slovenia	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Sourcing B.V.	The Netherlands	100.0%	100.0%	100.0%	100.0%
Coca-Cola HBC Switzerland Ltd	Switzerland	99.9%	99.9%	99.9%	99.9%
Coca-Cola HBC-Srbija d.o.o.	Serbia	100.0%	100.0%	100.0%	100.0%
Coca-Cola Hellenic Bottling
Company-Crna Gora d.o.o., Podgorica	Montenegro	100.0%	100.0%	100.0%	100.0%
Coca-Cola Hellenic Business
Service Organisation	Bulgaria	100.0%	100.0%	100.0%	100.0%
Coca-Cola Hellenic Procurement GmbH	Austria	100.0%	100.0%	100.0%	100.0%
dCommerce Solutions BV	The Netherlands	100.0%	100.0%	100.0%	100.0%
ESM Effervescent Sodas
Management Limited	Cyprus	100.0%	100.0%	100.0%	100.0%
Koncern Bambi a.d. Požarevac	Serbia	100.0%	100.0%	100.0%	100.0%
Multon AO	Russia	50.0%	50.0%	50.0%	50.0%
Multon Partners LLC	Russia	100.0%	100.0%	100.0%	100.0%
Nigerian Bottling Company Ltd	Nigeria	100.0%	100.0%	100.0%	100.0%
SIA Coca-Cola HBC Latvia	Latvia	100.0%	100.0%	100.0%	100.0%
Three Cents Hellas Single Member S.A.	Greece	100.0%	100.0%	100.0%	100.0%
UAB Coca-Cola HBC Lietuva	Lithuania	100.0%	100.0%	100.0%	100.0%

1. Following unilateral waiver by The Coca-Cola Company of certain of its governance rights, Coca-Cola HBC acquired control of Multon AO

Group of companies effective 11 August 2022 (refer to Note 24).

2. Brown-Forman Finland Oy was acquired on 1 November 2023 (refer to Note 24).

3. CCHBC Ventures BV was established on 21 April 2023.

4. Coca-Cola Bottling Company of Egypt S.A.E. was acquired on 13 January 2022 (refer to Note 24) and was renamed to Coca-Cola HBC Egypt

as of 18 June 2023.

5. ESM Effervescent Sodas Management Limited and its subsidiary Three Cents Hellas Single Member S.A. were acquired on 21 October 2022

(refer to Note 24).

6. LLC Coca-Cola HBC Eurasia was renamed to Multon Partners LLC as of 29 July 2022.

Associates and joint arrangements

Accounting policy

Equity method investments comprise investments in associates and joint arrangements and are

classified into integral and non-integral on the basis of whether they are considered part of the

Group’s core operations and strategy.

Investments in associates

Investments in associated undertakings are accounted for by the equity method of accounting.

Associated undertakings are all entities over which the Group has significant influence but not

control, generally accompanying a shareholding of between 20% and 50% of the voting rights.

The equity method of accounting involves recognising the Group’s share of the associates’ post-

acquisition profit or loss and movements in other comprehensive income for the period in the

income statement and statement of other comprehensive income respectively. Unrealised gains

and losses resulting from transactions between the Group and the associate are eliminated to the

extent of the interest in the associate.

The Group’s interest in each associate is carried in the balance sheet at an amount that reflects

its share of the net assets of the associate and includes goodwill on acquisition. When the Group’s

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.

Notes to the consolidated financial statements continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 220

16. Interests in other entities continued

Investments in joint arrangements

Joint arrangements are arrangements in which the Group has contractually agreed sharing of

control, which exists only when decisions about the relevant activities require unanimous consent.

Joint arrangements are classified as joint ventures or joint operations depending upon the rights

and obligations arising from the joint arrangement.

The Group classifies a joint arrangement as a joint venture when the Group has rights to the net

assets of the arrangement. The Group accounts for its interests in joint ventures using the equity

method of accounting as described in the section above.

The Group classifies a joint arrangement as a joint operation when the Group has the rights to the

assets, and obligations for the liabilities, 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

The Group participates in several joint arrangements. Judgement is required in order to determine

the classification of the Group’s joint arrangements as joint ventures where the Group has rights to

the net assets of the arrangement, or joint operations where the Group has rights to the assets and

obligations for the liabilities of the arrangement. In making this assessment, 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 relevant legal framework). The Group participates in a number of joint arrangements with The

Coca-Cola Company in connection with its water business across its markets, the classification of

which involves a significant degree of judgement due to the complexity of the underlying contractual

arrangements of the business model and the diversity of the relevant legal frameworks across

markets.

Equity-method investments

Changes in the carrying amounts of equity method investments are as follows:

	Joint ventures	Associates	Total
	€ million	€ million	€ million
As at 1 January 2022	246.9	118.9	365.8
Impairment (refer to Note 6)	(52.8)	–	(52.8)
Gain on remeasurement of previously held equity interest
arising from business combination	70.8	–	70.8
Deemed disposal arising from business combination
(refer to Note 24)	(249.9)	–	(249.9)
Capital increase	4.0	7.0	11.0
Share of results of equity method investments	42.1	2.0	44.1
Share of other comprehensive income of equity method
investments	34.6	(0.4)	34.2
Share of total comprehensive income	76.7	1.6	78.3
Dividends	(9.7)	(7.9)	(17.6)
As at 31 December 2022	86.0	119.6	205.6
Share of results of equity method investments	9.8	4.9	14.7
Share of other comprehensive income of equity method
investments	0.3	(12.0)	(11.7)
Share of total comprehensive income	10.1	(7.1)	3.0
Dividends	(9.3)	(2.1)	(11.4)
Decrease due to other movements	–	(0.2)	(0.2)
As at 31 December 2023	86.8	110.2	197.0

Notes to the consolidated financial statements continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 221

16. Interests in other entities continued

The carrying amount of equity method investments as at 31 December 2023 comprises integral and

non-integral equity method investments as follows:

	Joint ventures	Associates	Total
	€ million	€ million	€ million
Integral equity method investments	82.6	–	82.6
Non-integral equity method investments	4.2	110.2	114.4
Total equity method investments	86.8	110.2	197.0

a) Investments in joint ventures

The Group has a 50% interest in Multon AO Group of companies (‘Multon’), which is engaged in the

production and distribution of juices in Russia and was jointly controlled by the Group and The Coca-

Cola Company until August 2022 (the joint arrangement was classified as a joint venture, as its structure

provided to the Group rights to its net assets). In August 2022, The Coca-Cola Company unilaterally

waived certain of its governance rights in connection with its 50% interest in Multon, which were

accordingly assumed by the Group. As a result, considering the criteria set out in IFRS 10 ‘Consolidated

financial statements’, the Group concluded that, effective 11 August 2022, it controls Multon (refer to

Note 24).

As a result of the change in control of Multon described above, on 11 August 2022 the Group

remeasured the previously held equity interest in Multon at its fair value (refer to Note 24), which

resulted in a gain of €70.8 million, which was presented in line ‘Gain on remeasurement of previously

held equity interest arising from business combination’ of the table on page 221, regarding 2022

changes in the carrying amount of equity method investments. The Group then proceeded to

derecognise the resulting carrying amount of Multon investment of approximately €250 million, against

the fair value of the identifiable net assets recognised (refer to Note 24), which was presented in line

‘Deemed disposal arising from business combination’ of the table on page 221, regarding 2022 changes

in the carrying amount of equity method investments.

Apart from Multon, the Group has a significant joint venture with Heineken, through its 50% interest

in AD Pivara Skopje, which is engaged in the bottling and distribution of soft drinks and beer in North

Macedonia. The structure of the joint venture provides the Group with rights to its net assets.

Summarised financial information of the Group’s significant joint ventures is presented below.

The information below reflects the amounts presented in the IFRS financial statements of the joint

venture, amended to reflect adjustments made when using the equity method, including fair value

adjustments and not the Group’s share in these amounts.

	2022
Multon AO Group of companies	€ million
Summarised statement of comprehensive income 1 :
Revenue	307.3
Depreciation	(3.4)
Interest income	6.6
Interest expense	(1.1)
Profit before tax	80.5
Income tax expense	(15.9)
Profit after tax	64.6
Other comprehensive income	69.8
Total comprehensive income	134.4

1. The summarised statement of comprehensive income for 2022 reflects the period up to 11 August, during which Multon was classified as a

joint venture.

Notes to the consolidated financial statements continued

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16. Interests in other entities continued

	2023	2022
AD Pivara Skopje	€ million	€ million
Summarised balance sheet:
Non-current assets	65.1	66.1
Cash and cash equivalents	3.5	0.5
Other current assets	18.7	14.4
Total current assets	22.2	14.9
Borrowings	(6.0)	(3.6)
Other current liabilities (including trade payables)	(28.9)	(20.8)
Total current liabilities	(34.9)	(24.4)
Borrowings	(0.8)	(7.0)
Other non-current liabilities	(0.5)	(0.3)
Total non-current liabilities	(1.3)	(7.3)
Net assets	51.1	49.3
Summarised statement of comprehensive income:
Revenue	127.5	91.8
Depreciation	(7.5)	(5.7)
Interest expense	(0.1)	–
Profit before tax	19.8	17.9
Income tax expense	(2.4)	(2.1)
Profit after tax	17.4	15.8
Total comprehensive income	17.4	15.8
Dividends received	5.2	7.7

	2023	2022
AD Pivara Skopje	€ million	€ million
Reconciliation of net assets to carrying amount:
Closing net assets	51.1	49.3
Interest in joint venture at 50%	25.6	24.7
Goodwill	16.9	16.9
Non-controlling interest	(1.6)	(1.6)
Carrying value	40.9	40.0

Summarised financial information of the Group’s investment in other joint ventures is as follows:

	2023	2022
	€ million	€ million
Carrying amount	45.9	46.0
Share of profit	1.1	1.9
Share of other comprehensive income	0.3	(0.3)
Share of total comprehensive income	1.4	1.6

b) Investment in associates

The Group has one significant associate, being Casa Del Caffè Vergnano S.p.A. (‘Caffè Vergnano’),

a premium Italian coffee company in which the Group holds a 30% equity shareholding. The

corresponding investment is classified as an associate, as the Group has significant influence over the

investee. The Group has also entered into an exclusive distribution agreement for Caffè Vergnano’s

products in all its territories outside of Italy. The investment is accounted for using the equity method

and is further classified as a non-integral equity method investment in the consolidated financial

statements of the Group, considering that the distribution agreement is separate to the shareholding.

During 2022, acquisition costs of €0.8 million accrued in 2021 in connection with the investment in

Caffè Vergnano were paid and presented in line ‘Payments for non-integral equity method investments’

of the consolidated cash flow statement, while in 2023 €0.2 million of accrued acquisition costs were

written-off.

The information below reflects the amounts presented in the financial statements of Caffè Vergnano

under Italian law, amended to reflect adjustments made by the associate when using the equity

method, including fair value adjustments and not the Group’s share in those amounts.

Notes to the consolidated financial statements continued

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16. Interests in other entities continued

	2023	2022
Caffè Vergnano	€ million	€ million
Summarised balance sheet:
Non-current assets	123.4	125.2
Cash and cash equivalents	0.7	1.0
Other current assets	52.0	54.5
Total current assets	52.7	55.5
Borrowings	(15.6)	(19.6)
Other current liabilities (including trade payables)	(33.4)	(30.6)
Total current liabilities	(49.0)	(50.2)
Borrowings	(3.0)	(2.4)
Other non-current liabilities	(26.7)	(27.5)
Total non-current liabilities	(29.7)	(29.9)
Net assets	97.4	100.6
Summarised statement of comprehensive income:
Revenue	109.7	105.1
Depreciation	(8.0)	(7.6)
Loss before tax	(2.0)	(3.6)
Income tax	0.8	0.3
Loss after tax	(1.2)	(3.3)
Total comprehensive loss	(1.2)	(3.3)
Reconciliation of net assets to carrying amount:
Closing net assets	97.4	100.6
Interest in associate at 30%	29.2	30.2
Acquisition costs	0.9	1.1
Goodwill	56.5	56.5
Carrying value	86.6	87.8

Summarised financial information of the Group’s investment in other associates is as follows:

	2023	2022
	€ million	€ million
Carrying amount	23.6	31.8
Share of profit	5.3	3.0
Share of other comprehensive loss	(12.0)	(0.4)
Share of total comprehensive (loss)/income	(6.7)	2.6

We disclosed in our 2022 Integrated Annual Report that Frigoglass Industries (Nigeria) Limited, an

associate in which the Group holds an effective interest of 23.9% (2022: 23.9%) through its subsidiary

Nigerian Bottling Company Ltd, was guarantor under the amended banking facilities and notes issued

by the Frigoglass Group. This guarantee expired in April 2023 as part of the restructuring of Frigoglass

Group (refer to Note 28). However, Frigoglass Industries (Nigeria) Limited is a guarantor for the new

senior secured notes issued in 2023 by the restructured Frigoglass Group. The Group has no direct

exposure arising from this guarantee arrangement, but the Group’s investment in this associate, which

stood at €14.0 million as at 31 December 2023 (2022: €21.1 million), would be at potential risk if there

was a default under the terms of the senior secured notes and the restructured Frigoglass Group

(including the guarantor) was unable to meet its obligations thereunder.

c) Joint operations

Other joint operations of the Group with The Coca-Cola Company comprise mainly a 50% interest

in each of the water businesses listed below, which are engaged in the production and distribution of

water in the respective countries.

Country	Joint operation
Austria	Römerquelle
Italy	Fonti del Vulture
Romania	Dorna
Baltics	Neptuno Vandenys
Poland	Multivita
Switzerland	Valser
Serbia	Vlasinka

In addition, the Group has entered into a joint operation arrangement with HEINEKEN Romania S.A.,

whereby it holds a 50% interest in Stockday S.R.L., an online business-to-business platform and

distributor in Romania.

Notes to the consolidated financial statements continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 224

17. Leases

Accounting policy

Leases for which the Group is in a lessee position are recognised as a right-of-use asset and a

corresponding lease liability at the date at which the leased asset is available for use by the Group.

Assets and liabilities arising from a lease are initially measured on a net-present-value basis and

are recognised as part of ‘Property, plant and equipment’, ‘Current borrowings’ and ‘Non-current

borrowings’ in the consolidated balance sheet, respectively.

Lease contracts may contain both lease and non-lease components. The Group allocates the

consideration in the contract to the lease and non-lease component respectively. Consideration

relevant to the non-lease component is recognised as an expense in the consolidated income

statement over the period of the lease.

Lease liabilities include the net present value of the following lease payments:

a) fixed payments (including in-substance fixed payments) over the lease term, less any lease

incentives receivable;

b) variable lease payments that are based on an index or a rate;

c) amounts expected to be payable by the lessee under residual value guarantees;

d) the exercise price of a purchase option if the Group is reasonably certain it will exercise that

option; and

e) payments of penalties for terminating the lease, if the lease term reflects the Group exercising

that option.

When adjustments to lease payments based on an index or rate take effect, the lease liability

is reassessed and adjusted against the right-of-use asset.

Variable lease payments that do not depend on an index or a rate are recognised as an expense

in the period in which the event or condition that triggers the payment occurs.

The lease payments are discounted using the interest rate implicit in the lease (if that rate can

be determined), or the incremental borrowing rate of the lease, being the rate that the individual

lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar

economic environment with similar terms, security and conditions. In determining the incremental

borrowing rate to be used, the Group applies judgement to establish the suitable reference rate and

credit spread.

Each lease payment is allocated between the liability (principal) and finance cost. The interest

expense is charged to the consolidated income statement as part of ‘Finance costs’ over the lease

period so as to produce a constant periodic rate of interest on the remaining balance of the liability

for each period.

Right-of-use assets are measured at cost comprising the following:

a) the amount of the initial measurement of lease liability;

b) any lease payments made at or before the commencement date less any lease

incentives received;

c) any initial direct costs; and

d) any restoration costs.

The right-of-use assets are depreciated over the shorter of the assets’ useful life and the lease term

on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-

use asset is depreciated over the underlying asset’s useful life.

The Group utilises a number of practical expedients permitted by the standard, namely:

1) applying the recognition exemption to short-term leases (i.e. leases with a term of 12 months

or less) that do not contain a purchase option; and

2) applying the recognition exemption to leases of underlying assets with a low value, which mainly

comprise IT equipment.

Payments associated with short-term leases and leases of low-value assets are recognised on a

straight-line basis as an expense in the consolidated income statement.

In determining the lease term, management considers all facts and circumstances that create an

economic incentive to exercise an extension option, or not exercise a termination option. Extension

options (or periods after termination options) are only included in the lease term if the lease is

reasonably certain to be extended (or not terminated). The assessment is revised if a significant

event or a significant change in circumstances occurs, which affects this assessment and which is

within the control of the lessee.

Lease payments are presented as follows in the consolidated cash flow statement:

• short-term lease payments, payments for leases of low-value assets and variable lease payments

that are not included in the measurement of the lease liabilities are presented within cash flows

from operating activities;

• payments for the interest element of recognised lease liabilities are included in ‘Interest paid’

within cash flows from financing activities; and

• payments for the principal element of recognised lease liabilities are presented within cash flows

from financing activities.

Notes to the consolidated financial statements continued

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 225

Notes to the consolidated financial statements continued

17. Leases continued

Leasing activities

The leases which are recorded on the consolidated balance sheet are principally in respect of buildings

and vehicles. Lease terms are negotiated on an individual basis and contain a wide range of different

terms and conditions.

Extension and termination options are included in a number of leases across the Group. These are used

to maximise operational flexibility in terms of managing the assets used in the Group’s operations.

Extension options considered reasonably certain to be exercised relate to both buildings and motor

vehicles and do not exceed one year. Most termination options have not been considered reasonably

certain to be exercised.

The Group’s carrying amount of lease liability is presented below as at 31 December:

	2023	2022
	€ million	€ million
Current lease liability	55.3	53.9
Non-current lease liability	154.8	152.1
Total lease liability (refer to Note 26)	210.1	206.0

For the carrying amount of right-of-use assets per class of underlying asset, refer to Note 15.

The Group’s additions to right-of-use assets for the years ended 31 December are as follows:

	2023	2022
	€ million	€ million
Land and buildings	36.0	32.0
Plant and equipment	50.7	59.2
Total additions	86.7	91.2

Right-of-use assets arising on business combinations in 2023 amounted to €6.7 million (2022: €40.1

million) (refer to Note 24).

The consolidated income statement includes the following amounts relating to depreciation and

impairment of right-of-use assets:

	2023	2022
	€ million	€ million
Land and buildings	22.5	21.4
Plant and equipment	36.6	40.8
Total depreciation and impairment charge	59.1	62.2

The following expenses have been included in cost of goods sold and operating expenses:

	2023	2022
	€ million	€ million
Expense relating to short-term leases	26.5	22.7
Expense relating to leases of low-value assets	5.3	2.5
Expense relating to variable lease payments	15.4	10.8

Interest expense on leases in 2023 was €16.1 million (2022: €16.4 million) and is recorded within

‘Finance costs’ in the consolidated income statement (refer to Note 10).

The total cash outflow for leases in 2023 was €109.3 million (2022: €103.6 million).

Expenses relating to short-term leases in 2023 and 2022 comprise consideration for leases with

a term of 12 months or less used to cover seasonal business needs.

18. Inventories

Accounting policy

Inventories are stated at the lower of cost and net realisable value.

Cost for raw materials and consumables is determined on a weighted average basis. Cost for work

in progress and finished goods comprises the cost of direct materials and labour plus attributable

overhead costs. Cost of inventories includes all costs incurred to bring the product to its present

location and condition.

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.

Inventories consisted of the following as at 31 December:

	2023	2022
	€ million	€ million
Finished goods	367.8	331.1
Raw materials and work in progress	305.8	329.3
Consumables	99.7	109.6
Total inventories	773.3	770.0

The amount of inventories recognised as an expense during 2023 was €4,989.5 million (2022: €4,509.6

million, including €1.1 million of write-offs related to Russia-Ukraine conflict). During 2023, provision for

obsolete inventories recognised as an expense amounted to €31.1 million (2022: €19.2 million), whereas

provision reversed in the year amounted to €3.8 million (2022: €0.4 million).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 226

Notes to the consolidated financial statements continued

19. Trade, other receivables and assets

Accounting policy

Trade receivables are amounts due from customers for goods sold or services performed in the

ordinary course of business. They are initially recognised at fair value and subsequently measured

at amortised cost using the effective interest rate method. The normal credit terms are between

7-90 days upon delivery.

The Group applies the IFRS 9 simplified approach for trade and other receivables and follows an

Expected Credit Losses (‘ECLs’) approach for measuring the allowance of its trade receivables.

The expected loss rate is assessed on the basis of historical credit losses of 24 months before the

year end and adjusted to reflect current and forward-looking information. ECLs are based on the

difference between the contractual cash flows due in accordance with the contract and all the cash

flows that the Group expects to receive. The carrying amount of the receivable is reduced by the

loss allowance, which is recognised as part of operating expenses. If a trade receivable ultimately

becomes uncollectible, it is written off initially against any loss allowance made in respect of that

receivable with any excess recognised as part of operating expenses. Subsequent recoveries

of amounts previously written off or loss allowance no longer required are credited against

operating expenses.

The Group has entered into a contract that provides insurance coverage against defaulted

trade receivables. This contract meets the definition of a financial guarantee contract, which

is in substance part of the contract terms (that is, integral to the trade receivables) and is not

recognised separately. Therefore, the expected cash flows from the credit insurance are included

in the measurement of ECLs of trade receivables.

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 effective interest rate method whereby any discount, premium

or transaction costs associated with a loan are amortised to the income statement over the

lending period.

Trade, other receivables and assets consisted of the following as at 31 December:

	Current assets		Non-current assets
	2023	2022	2023	2022
	€ million	€ million	€ million	€ million
Trade receivables	863.2	804.8	0.1	0.1
Receivables from related parties
(refer to Note 28)	53.2	56.5	–	–
Loans receivable	3.5	1.1	2.2	0.8
Receivables from sale of property, plant and equipment	0.3	0.4	–	–
Loans and advances to employees	4.1	10.1	–	–
Other receivables	127.2	144.1	0.2	1.4
Total trade and other receivables	1,051.5	1,017.0	2.5	2.3
Prepayments	104.1	88.6	22.3	14.3
Pension plan assets (refer to Note 22)	–	–	48.6	51.9
Non-current income tax receivable	–	–	8.5	9.7
VAT and other taxes receivable	32.4	42.3	–	–
Total other assets	136.5	130.9	79.4	75.9
Total trade, other receivables and assets	1,188.0	1,147.9	81.9	78.2

An amount of €52.7 million (2022: €50.0 million) included in ‘Other receivables’ relates to receivables

from brand partners in the sale and distribution of premium spirits and energy drinks.

Non-current trade receivables relate to renegotiated receivables, which are expected to be settled

within the new contractual due date.

For offsetting impact on trade receivables, refer to Note 23.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 227

Notes to the consolidated financial statements continued

19. Trade, other receivables and assets continued

Trade receivables

Trade receivables classified as current assets consisted of the following as at 31 December:

	2023	2022
	€ million	€ million
Trade receivables	942.4	880.6
Less: Loss allowance	(79.2)	(75.8)
Total trade receivables	863.2	804.8

The ageing analysis of trade receivables classified as current assets is as follows:

		2023			2022
		€ million			€ million
	Gross			Gross
	carrying	Loss	Trade	carrying	Loss	Trade
	amount	allowance	receivables	amount	allowance	receivables
Within due date	746.8	(3.5)	743.3	720.2	(1.1)	719.1
Past due – Up to three months	102.5	(1.8)	100.7	70.5	(0.5)	70.0
Past due – Three to six months	7.1	(1.2)	5.9	7.0	(1.2)	5.8
Past due – Six to nine months	4.0	(1.2)	2.8	3.6	(1.3)	2.3
Past due – More than nine months	82.0	(71.5)	10.5	79.3	(71.7)	7.6
Total trade receivables	942.4	(79.2)	863.2	880.6	(75.8)	804.8

The movement in the loss allowance during the year is as follows:

	2023	2022
	€ million	€ million
As at 1 January	(75.8)	(76.1)
Amounts written off during the year	3.9	1.7
Amounts recovered during the year	2.9	7.3
Increase in allowance recognised in income statement	(8.2)	(13.6)
Foreign currency translation	(2.0)	4.9
As at 31 December	(79.2)	(75.8)

Receivables from related parties

The related party receivables, net of the loss allowance, are as follows:

	2023	2022
	€ million	€ million
Within due date	47.9	50.9
Past due	5.4	5.7
Less: Loss allowance	(0.1)	(0.1)
Total related party receivables	53.2	56.5

The ageing analysis of these receivables is as follows:

	2023	2022
	€ million	€ million
Within due date	47.9	50.8
Past due – Up to three months	4.4	1.8
Past due – Three to six months	0.8	3.6
Past due – More than nine months	0.1	0.3
Total	53.2	56.5

Net impairment

Net impairment loss on trade and other receivables recognised in the income statement is analysed

as follows:

	2023	2022
	€ million	€ million
Trade receivables	4.2	6.2
Other receivables and assets	7.3	2.8
Net impairment loss	11.5	9.0

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 228

Notes to the consolidated financial statements continued

20. Assets classified as held for sale

Accounting policy

Non-current assets and disposal groups are classified as held for sale if it is considered highly

probable that their carrying amount will be 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 a plan to sell the asset,

an active programme to locate a buyer and complete the plan must have been initiated, and the sale

should be expected to be completed within one year from the date of classification.

In the event that the criteria for continued classification as held for sale are no longer met, the assets

are reclassified to property, plant and equipment and the depreciation charge is adjusted for the

depreciation that would have been recognised had the assets not been classified as held for sale.

Non-current assets and disposal groups classified as held for sale are measured at the lower of the

individual assets’ previous carrying amount and their fair value less costs to sell.

As at 31 December 2023, the Group’s assets classified as held for sale amounted to €3.3 million,

comprising the net book value of land and buildings of €1.8 million and €1.5 million in the Group’s

Established and Emerging segments respectively (2022: €0.1 million of plant and equipment in the

Group’s Established segment), that has been written down to fair value less costs to sell (refer to

Note 15). The fair value of assets classified as held for sale 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. Assets classified as held for sale in 2022 were reclassified to property, plant and equipment

during 2023, as sale did not complete within one year from the date of classification as held for sale.

21. Trade and other payables

Accounting policy

Trade payables are recognised initially at fair value and subsequently measured at amortised cost

using the effective interest rate method.

Trade and other payables consisted of the following at 31 December:

	2023	2022
	€ million	€ million
Trade payables	1,097.4	947.2
Accrued liabilities	719.4	727.9
Payables to related parties (refer to Note 28)	289.5	268.6
Deposit liabilities	90.6	112.6
Other tax and social security liabilities	173.3	159.2
Salaries and employee-related payables	69.1	69.2
Contract liabilities (refer to Note 8)	15.0	14.7
Other payables	23.8	32.5
Total trade and other payables	2,478.1	2,331.9

The Group facilitates a supply chain financing programme under which the supplier can elect on

an invoice-by-invoice basis to either receive a discounted early payment from the partner bank, or

continue to be paid in line with the agreed payment terms; in either case, the value and due date of the

liability payable by the Group remain unchanged and, as such, the liability remains classified as trade

and other payables. As at 31 December 2023, invoices included in the programme amounted to €144.7

million (2022: €175.3 million).

Accrued liabilities regarding volume, marketing and promotional incentives as well as listing fees

and other incentives provided to customers as at 31 December 2023 amounted to €351.2 million

(2022: €287.3 million).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 229

Notes to the consolidated financial statements continued

22. Provisions and employee benefits

Provisions and employee benefits consisted of the following as at 31 December:

	2023	2022
	€ million	€ million
Current:
Employee benefits	145.8	131.5
Restructuring provisions	3.2	3.2
Other provisions	50.1	46.8
Total current provisions and employee benefits	199.1	181.5
Non-current:
Employee benefits	105.8	103.8
Restructuring provisions	1.9	1.1
Other provisions	1.4	2.0
Total non-current provisions and employee benefits	109.1	106.9
Total provisions and employee benefits	308.2	288.4

a) Provisions

Accounting policy

Provisions are recognised when: the Group has a present obligation (legal or constructive) as a

result of a past event; it is probable that an outflow of resources embodying economic benefits

will be required to settle the obligation; and a reliable estimate can be made of the amount

of the obligation.

Where the Group expects a provision to be reimbursed, for example under an insurance

contract, the reimbursement is recognised as a separate asset only when such reimbursement

is virtually certain.

If the effect of the time value of money is material, provisions are determined by discounting the

expected future cash flows at a pre-tax rate that reflects current market assessments of the time

value of money and the risks specific to the liability.

Termination benefits are payable whenever an employee’s employment is terminated before the

normal retirement date or whenever an employee accepts voluntary redundancy in exchange for

these benefits. The Group recognises termination benefits at the earlier of the following dates:

a) when the Group can no longer withdraw the offer of those benefits; and b) when the Group

recognises costs for a restructuring that is within the scope of IAS 37 ‘Provisions, contingent

liabilities and contingent assets’ and involves the payment of termination benefits (refer to Note 9).

In the case of an offer made to encourage voluntary redundancy, the termination benefits are

measured based on the number of employees expected to accept the offer.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 230

Notes to the consolidated financial statements continued

22. Provisions and employee benefits continued

The movements in restructuring and other provisions comprise:

	2023		2022
	€ million		€ million
	Restructuring	Other	Restructuring	Other
	provision	provisions	provision	provisions
As at 1 January	4.3	48.8	24.8	20.5
Arising during the year	7.6	31.5	19.3	22.5
Utilised during the year	(6.1)	(23.1)	(32.1)	(1.4)
Unused amount reversed	(0.7)	(1.7)	(7.8)	(3.1)
Arising from business combinations	–	–	0.1	15.1
Foreign currency translation	–	(4.0)	–	(4.8)
As at 31 December	5.1	51.5	4.3	48.8

During 2023, a restructuring provision of €0.7 million was recognised in connection with the new

business model in Russia following the Russia-Ukraine conflict (refer to Note 6), which was utilised

during the year (2022: €3.9 million). Other provisions primarily comprise provisions in relation to

donations, employee litigation, legal and other tax provisions.

b) Employee benefits

Accounting policy

The Group operates a number of defined benefit and defined contribution pension plans

in its territories.

The defined benefit plans are made up of both funded and unfunded pension plans and employee

leaving indemnities. The assets of funded plans are generally held in separate trustee-administered

funds and are financed by payments from employees and/or the relevant Group companies.

The liability recognised in the balance sheet in respect of defined benefit plans is the present value

of the defined benefit obligation at the balance sheet date less the fair value of the plan assets.

For defined benefit pension plans, pension costs are assessed using the projected unit credit

method. Actuarial gains and losses arising from experience adjustments and changes in actuarial

assumptions are charged or credited to equity in other comprehensive income in the period in

which they arise. Such actuarial gains and losses are not reclassified to the income statement in

subsequent periods. The defined benefit obligations are measured at the present value of the

estimated future cash outflows using interest rates of high-quality corporate bonds that are

denominated in the currency in which the benefits will be paid, and that have terms approximating

to the terms of the related obligation. In countries where there is no deep market in such bonds,

the market rates on government bonds are used. Past service cost is recognised immediately in

the income statement. A number of the Group’s operations have other long-service benefits in the

form of jubilee plans. These plans are measured at the present value of the estimated future cash

outflows with immediate recognition of actuarial gains and losses in the income statement.

The Group’s contributions to the defined contribution pension plans are charged to the income

statement in the period to which the contributions relate.

Critical accounting estimates

The Group provides defined benefit pension plans as an employee benefit in certain territories.

Determining the value of these plans requires several actuarial assumptions and estimates

that may differ from actual developments in the future. These include the determination of the

discount rates, rate of compensation increases, rate of pension increases and life expectancy of

pensioners at the age of 65. Due to the long-term nature of these plans, such estimates are subject

to significant uncertainty. Details on the key assumptions used and a sensitivity analysis regarding

the impact of reasonably possible changes in key assumptions on the defined benefit obligation are

further presented below.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 231

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 232

Notes to the consolidated financial statements continued

22. Provisions and employee benefits continued

Defined benefit obligation by segment is as follows for the years ended 31 December:

Employee benefits consisted of the following as at 31 December:

	2023	2022
	€ million	€ million
Defined benefit plans:
Employee leaving indemnities	66.7	67.9
Pension plans	5.5	3.4
Long-service benefits (jubilee plans) and other benefits	12.9	13.2
Total defined benefit plans	85.1	84.5
Other employee benefits:
Annual leave	9.8	7.6
Other employee benefits	156.7	143.2
Total other employee benefits	166.5	150.8
Total employee benefits obligations	251.6	235.3

€2.5m

2023

€68.7m

€13.9m

Total €85.1 million

€1.7m

2022

€58.0m

€24.8m

Total €84.5 million

Established Developing Emerging

The average duration of the defined benefit obligations is 15 years and the total employer contributions

expected to be paid in 2024 are €11.8 million.

Other employee benefits primarily comprise employee bonuses which are linked to business and

individual performance metrics.

Employees of Coca-Cola HBC’s subsidiaries in Austria, Bulgaria, Croatia, Greece, Italy, Montenegro,

Nigeria, Poland, Romania, Serbia and Slovenia are entitled to employee leaving indemnities, generally

based on each employee’s length of service, employment category and remuneration. These are

unfunded plans where the Company meets the payment obligation as it falls due.

Coca-Cola HBC’s subsidiaries in Austria, Northern Ireland, the Republic of Ireland and Switzerland

sponsor defined benefit pension plans. Of the three plans in the Republic of Ireland, two have

plan assets, as do the two plans in Northern Ireland, and one plan out of the three in Switzerland.

The Austrian plans do not have plan assets and the Company meets the payment obligation as it falls

due. The defined benefit plans in Austria, the Republic of Ireland and Northern Ireland are closed to

new members.

Coca-Cola HBC provides long-service benefits in the form of jubilee plans to its employees in Austria,

Croatia, Nigeria, Poland, Serbia, Slovenia and Switzerland.

Notes to the consolidated financial statements continued

22. Provisions and employee benefits continued

The reconciliation of plan assets and plan liabilities for the years ended 31 December is as follows:

			Net (deficit)/
	Plan assets	Plan liabilities	surplus
	€ million	€ million	€ million
As at 1 January 2022	519.4	(526.3)	(6.9 )
Current service cost	–	(11.8)	(11.8 )
Past service cost	–	(3.0)	(3.0 )
Administrative expenses	(0.3)	–	(0.3 )
Curtailment/settlement	(2.9)	2.8	(0.1 )
Interest income/(expense)	4.4	(6.1)	(1.7 )
Actuarial gains	–	2.0	2.0
Total income/(expense) recognised
in income statement	1.2	(16.1)	(14.9 )
Loss from change in demographic assumptions	–	(2.9)	(2.9 )
Gains from change in financial assumptions	–	145.2	145.2
Experience adjustments	–	(8.7)	(8.7 )
Return on plan assets excluding interest income	(91.9)	–	(91.9 )
Total remeasurements recognised
in other comprehensive income	(91.9)	133.6	41.7
Benefits paid	(22.4)	22.4	–
Employer's contributions	13.1	–	13.1
Participants’ contributions	4.8	(4.8)	–
Net increase in defined benefit obligation
from other movements	–	(0.8)	(0.8 )
Foreign currency translation	7.7	(6.5)	1.2
As at 31 December 2022	431.9	(398.5)	33.4

			Net surplus/
	Plan assets	Plan liabilities	(deficit)
	€ million	€ million	€ million
As at 1 January 2023	431.9	(398.5)	33.4
Current service cost	–	(9.8)	(9.8)
Past service cost	–	0.1	0.1
Administrative expenses	(0.3)	–	(0.3)
Curtailment/settlement	–	(1.1)	(1.1)
Interest income/(expense)	12.8	(13.3)	(0.5)
Actuarial losses	–	(0.6)	(0.6)
Total expense recognised in income statement	12.5	(24.7)	(12.2)
Losses from change in financial assumptions	–	(28.3)	(28.3)
Experience adjustments	–	(2.2)	(2.2)
Return on plan assets excluding interest income	5.3	–	5.3
Total remeasurements recognised
in other comprehensive income	5.3	(30.5)	(25.2)
Benefits paid	(22.0)	22.0	–
Employer’s contributions	14.4	–	14.4
Participants’ contributions	5.1	(5.1)	–
Foreign currency translation	14.9	0.3	15.2
As at 31 December 2023	462.1	(436.5)	25.6

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 233

Notes to the consolidated financial statements continued

22. Provisions and employee benefits continued

The effect of the asset ceiling on plan assets and net deficit for the years ended 31 December

is as follows:

	2023	2022
	€ million	€ million
Fair value of plan assets as at 1 January excluding asset ceiling	462.1	431.9
Opening unrecognised asset due to the asset ceiling	(66.0)	(48.3 )
Change in asset ceiling recognised in other comprehensive income	8.8	(15.7 )
Exchange rate gain	(3.3)	(1.8 )
Interest on unrecognised asset recognised in income statement	(1.6)	(0.2 )
Fair value of plan assets as at 31 December including asset ceiling	400.0	365.9

	2023	2022
	€ million	€ million
Present value of funded obligations	356.1	316.6
Fair value of plan assets	(462.1)	(431.9 )
Defined benefit obligations of funded plans	(106.0)	(115.3 )
Present value of unfunded obligations	80.4	81.9
Unrecognised asset due to asset ceiling	62.1	66.0
Defined benefit obligations	36.5	32.6
Plus: Amounts recognised within non-current assets (refer to Note 19)	48.6	51.9
Total defined benefit obligations	85.1	84.5

Funding levels are monitored in conjunction with the agreed contribution rate. The funding level of the

funded plans as at 31 December 2023 was 112% (2022: 116%).

Five of the plans have funded status surplus totalling €48.6 million as at 31 December 2023

(2022: five plans, totalling €51.9 million) that is recognised as an asset on the basis that the

Group has an unconditional right to future economic benefits either via a refund or a reduction

in future contributions.

Defined benefit plan expense is included in employee costs and presented in cost of goods sold

and operating expenses.

The assumptions (weighted average for the Group) used in computing the defined benefit obligation

comprised the following for the years ended 31 December:

	2023	2022
	%	%
Discount rate	2.8	3.6
Rate of compensation increase	2.5	2.8
Rate of pension increase	2.1	0.9
Life expectancy for pensioners at the age of 65 in years:
Male	22	22
Female	24	24

Asset liability matching: Plan assets allocated to growth assets are monitored regularly to ensure they

remain appropriate and in line with the Group’s 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.

Pension plan assets are invested in different asset classes in order to maintain a balance between

risk and return. Investments are well diversified to limit the financial effect of the failure of any

individual investment. Through its defined benefit plans the Group is exposed to a number of risks,

as outlined below:

Asset volatility: The liabilities are calculated using a discount rate set with reference to corporate bond

yields; if assets underperform this yield, a deficit will be created. The Northern Ireland, Republic of

Ireland and Swiss plans hold a significant proportion of growth assets (equities), which are expected to

outperform corporate bonds in the long term while being subject to volatility and risk in the short term.

Changes in bond yields: A decrease in corporate bond yields will increase the plan liabilities, although

this will be partially offset by an increase in the value of the plans’ bond holdings. Conversely, an increase

in corporate bond yields will decrease the plan liabilities, although this will be partially offset by a

decrease in the value of the plans’ bond holdings.

Inflation: The Northern Ireland, Republic of Ireland and Swiss plans’ benefit obligations are linked to

inflation, which is used as a basis to determine the rate of compensation increases. As a result, higher

inflation will lead to higher liabilities, although, in most cases, caps on the level of inflationary increases

are in place to protect against extreme inflation. The majority of the assets are either unaffected by or

only loosely correlated with inflation, meaning that an increase in inflation will also increase the deficit.

Life expectancy: The majority of the pension plans’ obligations are to provide benefits for the life of the

member, so increases in life expectancy will result in an increase in the liabilities.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 234

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 235

Notes to the consolidated financial statements continued

22. Provisions and employee benefits continued

The assets of funded plans are generally held in separately administered trusts, either as specific assets

or as a proportion of a general fund, or are insurance contracts. Plan assets held in trust are governed

The sensitivity analysis presented below is based on a change in assumption while all other assumptions

by local regulations and practice in each country. The category ‘Other’ mainly includes investments in

remain constant.

funds holding a portfolio of assets. Plan assets relate predominantly to quoted financial instruments.

						Impact on defined benefit obligation (%) as at
			31 December 2023			31 December 2022
	Change in	Increase in	Decrease in	Change in	Increase in	Decrease in
	assumption	assumption	assumption	assumption	assumption	assumption
Discount rate	1.00%	(12.6%)	13.9%	0.50%	(5.5%)	7.1%
Rate of compensation increase	1.00%	4.0%	(3.7%)	0.50%	1.5%	(1.4%)
Rate of pension increase	1.00%	5.3%	(5.1%)	0.50%	3.8%	(3.8%)
Life expectancy	1 year	2.2%	(2.3%)	1 year	2.4%	(2.4%)

Equity securities were not invested in ordinary shares of the Company as at 31 December 2023

or 31 December 2022.

Defined contribution plans

The expense recognised in the income statement in 2023 for the defined contribution plans is

€41.2 million (2022: €22.5 million). This is included in employee costs and recorded in cost of goods

sold and operating expenses.

23. Offsetting financial assets and financial liabilities

Accounting policy

Plan assets are invested as follows:

The Group offsets financial assets and financial liabilities to the net amount reported in the

balance sheet when it currently has a legally enforceable right to offset the recognised amounts

Assets category 2023 (%)

Assets category 2022 (%)

and it intends to settle on a net basis or to realise the asset and settle the liability 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.

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 as one single net amount the aggregated amounts owed by each

counterparty on a single day with respect to 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 subject to any set-off. These agreements do not meet all of the IAS

32 criteria for offsetting in the balance sheet as the Group does not have any current legally enforceable

right to offset amounts since the right can only be applied if elected by both counterparties.

The financial assets and financial liabilities presented below are subject to offsetting, enforceable

master netting or similar agreements. The column ‘Net amount’ shows the impact on the Group’s

balance sheet if all set-off rights were exercised.

Equity securities – Eurozone	4%
Equity securities – Non-Eurozone	20%
Government bonds – Eurozone	20%
Government bonds – Non-Eurozone	14%
Corporate bonds – Eurozone	6%
Corporate bonds – Non-Eurozone	17%
Real estate	12%
Cash	1%
Other	6%

Equity securities – Eurozone	2%
Equity securities – Non-Eurozone	19%
Government bonds – Eurozone	17%
Government bonds – Non-Eurozone	12%
Corporate bonds – Eurozone	11%
Corporate bonds – Non-Eurozone	12%
Real estate	13%
Cash	2%
Other	12%

Financial liabilities offset against trade receivables mainly relate to accrued customer rebates,

as the offsetting criteria for these are met.

Notes to the consolidated financial statements continued

23. Offsetting financial assets and financial liabilities continued

a) Financial assets

As at 31 December 2023

				Related amounts
				not set off in the
				balance sheet
		Gross amounts of	Net amounts of
	Gross amounts	recognised financial	financial assets
	of recognised	liabilities set off in	presented in the	Financial
	financial assets	the balance sheet	balance sheet	instruments	Net amount
	€ million	€ million	€ million	€ million	€ million
Derivative financial assets	101.5	–	101.5	(14.7)	86.8
Trade receivables	939.8	(76.5)	863.3	–	863.3
Total	1,041.3	(76.5)	964.8	(14.7)	950.1

As at 31 December 2022

				Related amounts
				not set off in the
				balance sheet
		Gross amounts of	Net amounts of
	Gross amounts	recognised financial	financial assets
	of recognised	liabilities set off in	presented in the	Financial
	financial assets	the balance sheet	balance sheet	instruments	Net amount
	€ million	€ million	€ million	€ million	€ million
Derivative financial assets	36.1	–	36.1	(16.7)	19.4
Trade receivables	876.1	(71.3)	804.8	–	804.8
Total	912.2	(71.3)	840.9	(16.7)	824.2

b) Financial liabilities

As at 31 December 2023

				Related amounts
				not set off in the
				balance sheet
		Gross amounts of	Net amounts of
	Gross amounts	recognised financial	financial liabilities
	of recognised	assets set off in the	presented in the	Financial
	financial liabilities	balance sheet	balance sheet	instruments	Net amount
	€ million	€ million	€ million	€ million	€ million
Derivative financial liabilities	73.0	–	73.0	(14.7)	58.3
Trade payables	1,173.9	(76.5)	1,097.4	–	1,097.4
Total	1,246.9	(76.5)	1,170.4	(14.7)	1,155.7

As at 31 December 2022

				Related amounts
				not set off in the
				balance sheet
		Gross amounts of	Net amounts of
	Gross amounts	recognised financial	financial liabilities
	of recognised	assets set off in	presented in the	Financial
	financial liabilities	the balance sheet	balance sheet	instruments	Net amount
	€ million	€ million	€ million	€ million	€ million
Derivative financial liabilities	45.6	–	45.6	(16.7)	28.9
Trade payables	1,018.5	(71.3)	947.2	–	947.2
Total	1,064.1	(71.3)	992.8	(16.7)	976.1

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 236

Notes to the consolidated financial statements continued

24. Business combinations and acquisition of non-controlling interests

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 resulting

from a contingent consideration arrangement. Identifiable assets acquired and liabilities and

contingent liabilities assumed 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. In a business combination achieved

without the transfer of consideration, the acquisition-date fair value of the previously held interest

in the acquiree is used in place of the acquisition-date fair value of the consideration transferred

to measure goodwill or a gain on a bargain purchase. Acquisition costs comprise costs incurred

to effect a business combination such as finder’s, advisory, legal, accounting, valuation and other

professional or consulting fees. Integration costs comprise direct incremental costs necessary for

the acquiree to operate within the Group. All acquisition and integration-related costs are expensed

as incurred.

For each business combination, the Group elects to measure the non-controlling interest in the

acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets.

If the business combination is achieved in stages, the acquisition date carrying value of the

previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any

gains or losses arising from such remeasurement are recognised in profit or loss, within operating

expenses in line ‘Acquisition and integration costs’. Any accumulated amounts regarding the Group’s

share of other comprehensive income of the previously held equity interest are reclassified to the

income statement, within operating expenses in line ‘Acquisition and integration costs’. The Group

has also elected to present gains on bargain purchase within operating expenses in line ‘Acquisition

and integration costs’.

Refer also to Note 2 for accounting policy regarding basis of consolidation.

Acquisition of Brown-Forman Finland Oy

On 1 November 2023, the Group acquired 100% of the issued shares of Brown-Forman Finland Oy

(‘BFF’), established in Finland, owner of the Finlandia Vodka brand. The acquisition enhances the

Group’s premium spirits business, while complementing its existing adult sparkling beverages portfolio

and better positions the Group to strengthen partnerships with customers in strategically important

channels such as hotels, restaurants and cafes (HoReCa).

The fair value of the consideration for the acquisition of BFF consists of US Dollar 193.8 million

(€183.9 million), which has already been paid, and an additional payment, based on BFF’s net financial

position and working capital movement, of US Dollar 0.6 million (€0.5 million), which is expected to be

transferred within the first quarter of 2024. This additional payment is still under discussion with the

seller, according to the terms of the sale and purchase agreement.

Details of the acquisition with regard to the provisionally determined fair values of the net assets

acquired and goodwill are presented in the table below. The net assets acquired reflect the additional

payment at the provisional amount of US Dollar 0.6 million (€0.5 million).

	Fair value
	€ million
Trademarks	197.0
Property, plant and equipment	6.7
Inventories	4.9
Trade, other receivables and assets	9.1
Cash and cash equivalents	3.5
Borrowings	(6.5)
Trade and other payables	(9.7)
Net deferred tax liability	(28.0)
Net identifiable assets acquired	177.0
Add: Goodwill arising on acquisition	7.4
Net assets acquired	184.4

1. Property, plant and equipment and borrowings acquired relate to right-of-use assets (refer to Note 17) and lease liability (refer to Note 26),

respectively.

Fair values on acquisition are provisional and will be finalised within 12 months of the acquisition date.

The goodwill arising is attributable to the brand’s growth potential across the Group’s markets.

Acquisition-related costs of €5.6 million were included in the 2023 operating expenses, as a result

of the above acquisition.

The fair value of trade, other receivables and assets acquired includes trade receivables with a fair

value of €2.0 million, while there was no significant amount of trade receivables acquired considered

to be uncollectible.

Net sales revenue and profit after tax contributed by BFF to the Group for the period from 1 November

2023 to 31 December 2023, amounted to €9.5 million and €2.8 million respectively. If the business

combination had occurred on 1 January 2023, consolidated net sales revenue and profit after tax

for the year ended 31 December 2023 would have been higher by approximately €43.5 million and

€7.4 million respectively. This pro forma information reflects the pre-acquisition operating model

of BFF and is not adjusted for the benefits arising from the post-acquisition transfer of distribution

from Brown-Forman or third-party distributors to CCH operations in the CCH markets, and therefore

should not be considered as indicative of Finlandia Vodka brand future performance.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 237

Notes to the consolidated financial statements continued

24. Business combinations and acquisition of non-controlling interests continued

Other acquisition costs

During 2023, the Group incurred acquisition costs of €0.7 million in connection with an acquisition

expected to be completed in 2024, which were included in line ‘Operating expenses’ of the consolidated

income statement.

Acquisition of Three Cents

On 21 October 2022, the Group acquired 100% of the issued shares of ESM Effervescent Sodas

Management Limited, established in Cyprus, the owner of the super-premium adult sparkling beverage

and mixer product line under the Three Cents brand and its subsidiary Three Cents Hellas Single

Member S.A., established in Greece (together, ‘Three Cents’), for a consideration of €45.9 million.

The acquisition complements and further premiumises the Group’s existing adult sparkling beverage

portfolio and will better position the Group to address a wider range of consumer tastes and segments.

Details of the acquisition with regard to the determined fair values of the net assets acquired and

goodwill are presented in the table below:

	Fair value
	€ million
Trademarks	22.6
Property, plant and equipment	0.2
Trade, other receivables and assets	1.9
Cash and cash equivalents	1.9
Borrowings	(0.1)
Trade and other payables	(1.9)
Net deferred tax liabilities	(2.7)
Net identifiable assets acquired	21.9
Add: Goodwill arising on acquisition	24.0
Net assets acquired	45.9

No changes to net identifiable assets acquired have been identified compared to the relevant amounts

disclosed as part of the Group’s 2022 Integrated Annual Report.

The goodwill arising is attributable to the brand’s growth potential across the Group’s markets.

Acquisition-related costs of €0.3 million were included in the 2022 operating expenses, as a result of

the above acquisition.

Multon AO group of companies (‘Multon’)

The Group holds a 50% interest in Multon, which is engaged in the production and distribution of juices

in Russia and was jointly controlled by the Group and The Coca-Cola Company. On 8 March 2022, as a

result of the Russia-Ukraine conflict, The Coca-Cola Company announced that it was suspending its

business in Russia and unilaterally waived certain of its governance rights in connection with its 50%

interest in Multon, while retaining consent rights in respect of certain limited board and shareholder

reserved matters that are protective in nature (the ‘Waiver’).

Considering the criteria set out in IFRS 10 ‘Consolidated financial statements’, the Group concluded

that, effective 11 August 2022, it controlled Multon. The change in control of Multon was accounted for

as a business combination achieved in stages in line with IFRS 3 ‘Business combinations’ requirements.

For more details on the Waiver and the assessment regarding change of control of Multon, refer to Note

24 of the 2022 Integrated Annual Report.

The fair value of the Group’s previously held interest in Multon, amounted to approximately €250 million

and was estimated based on discounted forecasted cash flows of the business, using a discount rate of

27.8%. As a result of the change in control of Multon, a gain on remeasurement of the previously held

equity interest to fair value amounting to €70.8 million and a loss regarding the reclassification to the

income statement of the Group’s share of Multon’s other comprehensive income amounting to €145.2

million were recognised in 2022. The arising net loss of €74.4 million was recognised within ‘Operating

expenses’ line of the consolidated income statement, included under Emerging markets for segmental

reporting purposes and within ‘Other non-cash items’ line of the consolidated cash flow statement.

The Group incurred acquisition costs of €0.1 million in 2022 regarding the change in control of Multon,

which were included in line ‘Operating expenses’ of the consolidated income statement.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 238

Notes to the consolidated financial statements continued

1. Effective 18 June 2023, Coca-Cola Bottling Company of Egypt S.A.E. was renamed to Coca-Cola HBC Egypt.

24. Business combinations and acquisition of non-controlling interests continued

Information on the fair values of the net assets acquired, non-controlling interests and gain from

bargain purchase arising on the business combination is presented in the below table.

	Fair value
	€ million
Trademarks	60.8
Property, plant and equipment	63.6
Inventories	37.5
Trade, other receivables and assets	212.4
Cash and cash equivalents	24.2
Borrowings	(1.2)
Trade and other payables	(50.1)
Net deferred tax liability	(2.7)
Net identifiable assets acquired	344.5
Less: Non-controlling interests	(90.7)
Less: Gain from bargain purchase arising on business combination	(3.9)
Net assets acquired	249.9

The cash and cash equivalents acquired amounting to €24.2 million was presented in line ‘Payment for

business combinations, net of cash acquired’ in the consolidated cash flow statement. Trade balances

between the Group and Multon were effectively settled on acquisition, with no gain or loss recognised

on the settlement, as the balances were effectively settled at the recorded amount.

The gain from bargain purchase arose mainly due to the deferred tax asset recognised on the economic

obsolescence attributed to Multon’s machinery and equipment and was presented in line ‘Operating

expenses’ in the consolidated income statement and line ‘Other non-cash items’ in the consolidated

cash flow statement. More specifically, the business enterprise value, which was estimated based

on discounted forecasted cash flows, was lower than the estimated fair value of the net identifiable

assets acquired, using the cost of depreciated replacement to new methodology for the machinery

and equipment of Multon. The Group considered that a market participant would not be willing to buy

the net assets of the business at the estimated fair value, as described above, if the utility of the same,

measured by the discounted forecasted cash flows of the business is smaller.

Therefore, a downward adjustment of €39.8 million was made on the fair value of the identifiable assets

as economic obsolescence in connection with Multon’s machinery and equipment, representing the

difference between the business enterprise value and the fair value of net identifiable assets. This in turn

resulted in the recognition of a deferred tax asset, which is considered recoverable based on the future

economic performance of Multon and was included in the value of net identifiable assets acquired.

The Group chose to recognise the non-controlling interests in Multon (The Coca-Cola Company’s 50%

share) at their fair value upon change in control. This was determined based on discounted forecasted

cash flows of the business and a scenario-based approach altering the potential dates at which The

Coca-Cola Company could potentially reinstate its rights in Multon, based on the terms of the unilateral

Waiver. The discount rate used in discounting the forecasted cash flows was 27.8%.

For more details on the scenarios used to calculate the fair value of non-controlling interest, refer to

Note 24 of the 2022 Integrated Annual Report.

Following the Waiver The Coca-Cola Company effectively has no entitlement over Multon’s profit or

loss generated in the ordinary course of business as it has contractually waived its rights over dividend

or other distributions made by Multon. As a result, Multon’s net profit or loss is not being allocated to

non-controlling interests during the period of the Waiver.

Acquisition of Coca-Cola Bottling Company of Egypt S.A.E.

On 12 August 2021, the Group entered into a sale and purchase agreement to acquire approximately

52.7% of Coca-Cola Bottling Company of Egypt S.A.E. (‘CCBCE’), the bottling partner of The Coca-Cola

Company in Egypt, from MAC Beverages Limited and certain of its affiliated entities (‘MBL acquisition’).

The MBL acquisition was completed on 13 January 2022 and resulted in the Group obtaining control

over CCBCE.

The operating results and assets and liabilities of CCBCE have been consolidated from 14 January 2022.

The fair value of the consideration for the MBL acquisition consisted of US Dollar 303.7 million (€264.9

million), which was transferred on acquisition, and an additional payment of US Dollar 124.0 million

(€119.1 million), based on CCBCE’s past performance, net financial position and working capital

movement, which was transferred in October 2022. Foreign exchange loss arising on settlement of

the consideration payable for the MBL acquisition amounted to €11.3 million and was presented in line

‘Payment for business combinations, net of cash acquired’ of the consolidated cash flow statement,

while proceeds from settlement of derivatives used to hedge the relevant foreign currency risk

amounted to €13.0 million and were presented in line ‘Proceeds from settlement of derivatives relating

to business combination’ of the consolidated cash flow statement.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 239

Notes to the consolidated financial statements continued

24. Business combinations and acquisition of non-controlling interests continued

As part of the MBL acquisition completion, a convertible loan which had been granted to CCBCE from a

wholly-owned affiliate of The Coca-Cola Company, one of its major shareholders, was also transferred

to the Group for a consideration of €19.1 million, which was presented in line ‘Repayments of

borrowings’ in the consolidated cash flow statement. The consideration was equal to the outstanding

principal amount of the convertible loan and any unpaid interest at the time of its transfer. The loan was

convertible at its original maturity in March 2022 into new CCBCE shares at fair market value and was

eliminated upon consolidation of CCBCE. The conversion option was not subsequently exercised.

Details of the MBL acquisition with regard to the determined fair values of the net assets acquired, non-

controlling interests and goodwill are presented in the below table.

	Fair value
	€ million
Franchise agreements	367.7
Property, plant and equipment	318.7
Inventories	59.3
Trade, other receivables and assets	64.5
Cash and cash equivalents	15.9
Borrowings	(217.0)
Trade and other payables	(129.6)
Net deferred tax liabilities	(122.7)
Net identifiable assets acquired	356.8
Less: Non-controlling interests	(168.9)
Add: Goodwill arising on acquisition	196.1
Net assets acquired	384.0

The line ‘Borrowings’ in the above table includes the convertible loan as well as third-party loans of

€122.7 million, which have been repaid and replaced with intra-group borrowings. The Group has

chosen to recognise the non-controlling interests at their proportionate share of the fair value of

CCBCE’s net identifiable assets acquired.

The Group incurred acquisition and integration costs of €8.8 million in 2022 regarding the acquisition

of CCBCE, which were included in line ‘Operating expenses’ of the consolidated income statement.

On 12 August 2021, the Group entered into an additional sale and purchase agreement to acquire

approximately 42% of CCBCE, from a wholly-owned affiliate of The Coca-Cola Company (‘TCCC

acquisition’). The TCCC acquisition was completed on 25 January 2022.

The fair value of the consideration paid for the TCCC acquisition amounted to US Dollar 122.7 million

(€108.9 million). The transaction was treated as separate to the MBL acquisition, considering that whilst

the transactions above were entered into at the same time and in contemplation of each other, they

were separate from a commercial and contractual perspective. The TCCC acquisition was accordingly

accounted for as an equity transaction.

Following the completion of both the transactions, the Group held a 94.7% interest in CCBCE

as at 31 December 2022. During 2023, the Group acquired a further 3.1% interest in CCBCE for

a consideration of €12.6 million, which was presented in line ‘Purchase of shares from non-controlling

interests’ of the consolidated cash flow statement. Following this, the Group held a 97.8% interest

in CCBCE as at 31 December 2023.

25. Financial risk management and financial instruments

Accounting policy

Financial assets

On initial recognition financial assets are recorded at fair value plus, in the case of financial assets not

at fair value through profit or loss (FVTPL), any directly attributable transaction costs. Transaction

costs of financial assets at FVTPL are expensed.

Financial assets are classified into three categories:

a) Financial assets at amortised cost (debt instruments)

The classification of debt instruments at amortised cost depends on two criteria: a) the Group’s

business model for managing assets; and b) whether the instruments’ contractual cash flows

represent solely payments for principal and interest on the principal amount outstanding (the ‘SPPI

criterion’). If both criteria are met the financial assets of the Group are subsequently measured at

amortised cost whereby any interest income is recognised using the effective interest method.

This category includes trade receivables, treasury bills and time deposits. The accounting policy

for trade receivables is described in Note 19.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 240

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

b) Financial assets through other comprehensive income (FVOCI)

The Group also has investments in financial assets at FVOCI. These include equity investments

that are not of a trading nature. The Group intends to hold these equity instruments for the

foreseeable future and has irrevocably elected to classify them as FVOCI upon initial recognition.

Upon derecognition of these financial assets, there is no recycling of gains or losses to the income

statement.

c) Financial assets through profit or loss (FVTPL)

The Group also has investments in financial assets at FVTPL which are subsequently measured at

fair value and where changes in fair value are recognised in the income statement. Financial assets

at FVTPL mainly comprise money market funds.

For those financial assets that are not subsequently held at fair value, the Group assesses whether

there is evidence of impairment at each balance sheet date.

Derivative financial instruments

The Group uses derivative financial instruments, including currency, commodity and interest

rate derivatives, to manage currency, commodity price and interest rate risk associated with

its business activities. The Group does not enter into derivative financial instruments for

trading activity purposes.

All derivative financial instruments are initially recognised on the balance sheet at fair value and

are subsequently remeasured at their fair value. Changes in the fair value of derivative financial

instruments are recognised at each reporting date either in the income statement or in equity,

depending on whether the derivative financial instrument qualifies for hedge accounting as a

cash flow hedge.

Embedded derivatives in financial host contracts are recorded at fair value through profit or loss

together with the host contracts.

All derivative financial instruments that are not part of an effective hedging relationship

(undesignated hedges) are classified as assets or liabilities at fair value through profit or loss.

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 financial

instrument designated as a hedging instrument to the specific asset, liability, firm commitment or

forecast transaction. The Group has established a hedge ratio of 1:1 for the hedging relationships

as the underlying risk of the hedging instruments are identical to the hedged risks component.

The economic relationship between the hedged item and the hedging instrument is assessed

on an ongoing basis. Ineffectiveness may arise if the timing or the notional of the forecast

transaction changes or if the credit risk changes impacting the fair value movements of the

hedging instruments.

Changes in the fair value of derivative financial instruments (both the intrinsic value and the aligned

time value) that are designated and effective as hedges of future cash flows are recognised directly

in other comprehensive income, while the ineffective portion is recognised immediately in the

income statement. Amounts accumulated in equity are recycled to the income statement as the

related hedged asset acquired or liability assumed affects the income statement.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated,

exercised, or no longer qualifies for 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.

Derivatives embedded in non-financial host contracts are accounted for as separate derivatives and

recorded at fair value through profit or loss if:

• their economic characteristics and risks are not closely related to those of the host contracts;

• the host contracts are not designated as at fair value through profit or loss; and

• a separate instrument with the same terms as the embedded derivative meets the definition

of a derivative.

These embedded derivatives are measured at fair value with changes in fair value recognised in the

income statement. Reassessment only occurs if there is either a change in the terms of the contract

that significantly modifies the cash flows that would otherwise be required or a reclassification of a

financial asset out of the fair value through profit or loss category takes place.

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 reference to the current market value of similar instruments or by reference to the

discounted cash flows of the underlying net assets or other valuation techniques.

Financial risk factors, objectives and policies

The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk,

commodity price risk and interest rate risk), credit risk, liquidity risk and capital risk. The Group’s overall

risk management programme focuses on the volatility of financial markets and seeks to minimise

potential adverse effects on the Group’s cash flows. The Group uses derivative financial instruments

to hedge certain risk exposures. Risk management is carried out by Group Treasury in a controlled

manner, consistent with the Board of Directors’ approved policies. Group Treasury identifies, evaluates

and hedges financial risks in close cooperation with the Group’s subsidiaries. The Board of Directors

has approved the Treasury Policy which provides the control framework for all treasury and treasury-

related transactions.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 241

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

Market risk

a) Foreign currency risk

The Group is exposed to the effect of foreign currency risk on future transactions, recognised

monetary assets and liabilities that are denominated in currencies other than the local entity’s

functional currency, as well as net investments in foreign operations. Foreign currency forward, option

and futures contracts are used to hedge a portion of the Group’s foreign currency risk. The majority of

the foreign currency forward, option and futures contracts have maturities of less than one year after

the balance sheet date.

Management has set up a policy that requires Group companies to manage their foreign exchange

risk against their functional currency. To 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 Treasury’s risk management

policy is to hedge, on an average coverage ratio basis, between 25% and 80% of anticipated cash flows

for the next 12 months by using a layer strategy and 100% of balance sheet remeasurement risk in

each major foreign currency for which hedging is applicable. Each subsidiary designates contracts with

Group Treasury as fair value hedges or cash flow hedges, as appropriate. External foreign exchange

contracts are designated at Group level as hedges of foreign exchange risk on specific monetary

assets, monetary liabilities or future transactions on a gross basis.

The following tables present details of the Group’s sensitivity to reasonably possible increases and

decreases in the Euro and the US Dollar against the relevant foreign currencies. In determining

reasonably 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 Group’s

foreign exchange positions as a result of the corresponding percentage increases and decreases in the

Group’s 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.

2023 exchange risk sensitivity to reasonably possible changes in the Euro against relevant

other currencies

			Euro strengthens		Euro weakens
		against local currency			against local currency
	% historical	Loss/(gain)		(Gain)/loss
	volatility over a	in income	Loss/(gain)	in income	(Gain)/loss
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Egyptian Pound	13.0%	4.9	7.7	(6.3)	(10.0)
Nigerian Naira	35.7%	11.8	–	(26.0)	–
Russian Rouble	17.5%	(3.8)	–	5.4	–
UK Sterling	4.8%	(1.3)	(0.2)	1.5	0.2
Ukrainian Hryvnia	8.4%	2.5	–	(2.9)	–
Other	–	4.5	(6.0)	(4.1)	5.7
Total		18.6	1.5	(32.4)	(4.1)

2023 exchange risk sensitivity to reasonably possible changes in the US Dollar against relevant

other currencies

			US Dollar strengthens		US Dollar weakens
			against local currency	against local currency
	% historical	Loss/(gain)		(Gain)/loss
	volatility over a	in income	Loss/(gain)	in income	(Gain)/loss
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Egyptian Pound	10.5%	7.2	1.8	(8.9)	(2.3)
Nigerian Naira	35.3%	7.7	33.5	(67.3)	(70.1)
Russian Rouble	15.3%	(8.2)	(0.6)	11.2	0.9
Ukrainian Hryvnia	3.4%	0.3	–	(0.3)	–
Other	–	(0.4)	–	0.4	–
Total		6.6	34.7	(64.9)	(71.5)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 242

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

2022 exchange risk sensitivity to reasonably possible changes in the Euro against relevant other

currencies

			Euro strengthens		Euro weakens
		against local currency			against local currency
	% historical	Loss/(gain)		(Gain)/loss
	volatility over a	in income	Loss/(gain)	in income	(Gain)/loss
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Egyptian Pound	23.3%	4.0	15.7	(6.4)	(25.3)
Nigerian Naira	15.5%	12.9	–	(17.6)	–
Russian Rouble	54.5%	(9.4)	(0.1)	31.9	0.2
UK Sterling	7.7%	(1.1)	(0.4)	1.2	0.2
Ukrainian Hryvnia	12.5%	2.9	–	(3.8)	–
Other	–	2.3	(4.4)	(3.1)	5.1
Total		11.6	10.8	2.2	(19.8)

2022 exchange risk sensitivity to reasonably possible changes in the US Dollar against relevant other

currencies

			US Dollar strengthens		US Dollar weakens
			against local currency	against local currency
	% historical	Loss/(gain)		(Gain)/loss
	volatility over a	in income	Loss/(gain)	in income	(Gain)/loss
	12-month	statement	in equity	statement	in equity
	period	€ million	€ million	€ million	€ million
Euro	10.1%	(7.2)	–	8.8	–
Egyptian Pound	22.2%	9.9	–	(15.6)	–
Nigerian Naira	5.9%	11.0	–	(12.4)	–
Russian Rouble	53.0%	(18.7)	–	61.0	–
Ukrainian Hryvnia	4.1%	(0.1)	–	0.1	–
Other	–	(0.4)	–	0.3	–
Total		(5.5)	–	42.2	–

b) Commodity price risk

The Group is affected by the volatility of certain commodity prices (being mainly sugar, aluminium,

aluminium premium, plastic and gas oil) in relation to certain raw materials necessary for the production

of the Group’s products.

Due to the significantly increased volatility of commodity prices, the Group’s Board of Directors has

developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

Although the Group continues to contract prices with suppliers in advance, to reduce its exposure

to the effect of short-term changes in the price of sugar, aluminium, aluminium premium, gas oil and

plastic the Group hedges the market price of these commodities using commodity swap contracts

based on a rolling forecast for a period up to 36 months. Group Treasury’s Risk management policy is to

hedge a minimum of 25% and a maximum of 80% of commodity exposure for the next 12 months with

the exception of certain types of plastic for which lower compliance ratios apply.

The following table presents details of the Group’s income statement and equity sensitivity to

increases and decreases in sugar, aluminium, aluminium premium, plastic and gas oil prices. The table

does not show the sensitivity to the Group’s total underlying commodity exposure or the impact of

changes in volumes that may arise from increase or decrease in the respective commodity prices. The

sensitivity analysis determines the potential effect on profit or loss and equity arising from the Group’s

commodity swap contract positions as a result of the reasonably possible increases or decreases of the

respective commodity price. In determining reasonably possible changes of the respective commodity

price, the historical volatility over a 12-month period per contract maturity has been considered.

2023 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
	% historical
	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	€ million	€ million	€ million	€ million
Sugar	18.8%	(1.6)	(42.3)	1.6	42.3
Aluminium	21.4%	(1.7)	(29.3)	1.7	29.3
Aluminium premium	29.0%	(0.1)	(2.6)	0.1	2.6
Gas oil	36.1%	–	(5.8)	–	5.8
Plastic	17.0%	(2.2)	–	2.2	–
Total		(5.6)	(80.0)	5.6	80.0

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 243

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

2022 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
	% historical
	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	€ million	€ million	€ million	€ million
Sugar	14.3%	(0.9)	(19.8)	0.9	19.8
Aluminium	32.3%	(2.1)	(34.3)	2.1	34.3
Aluminium premium	70.6%	(0.2)	(5.7)	0.2	5.7
Gas oil	72.5%	–	(15.4)	–	15.4
Plastic	28.1%	(8.9)	–	8.9	–
Total		(12.1)	(75.2)	12.1	75.2

c) Interest rate risk

The Group is subject to interest rate risk for its outstanding borrowings and interest rates swap

contracts (‘swaptions’).The sensitivity analysis in the following table has been determined based on

exposure to interest rates of both derivative and non-derivative instruments existing at the balance

sheet date and assuming constant foreign exchange rates. For floating rate liabilities, the analysis is

prepared assuming the amount of liability outstanding at the balance sheet date was outstanding

for the whole year. A 100 basis point increase or decrease for 2023 (2022: 50 basis point) represents

management’s assessment of a reasonably possible change in interest rates.

Interest rate risk sensitivity to reasonably possible changes in interest rates

	2023		2022
	Loss/(gain)		Loss/(gain) in
	in income	(Gain)/loss	income	Loss/(gain)
	statement	in equity	statement	in equity
	€ million	€ million	€ million	€ million
Increase by 100 basis points (2022: 50bps)	0.1	(8.8)	0.3	–
Decrease by 100 basis points ( 2022: 50bps)	(0.1)	1.8	(0.3)	–

The impact in the Group’s equity is attributable to the changes in the fair value of the swaptions

entered in 2023 for a notional amount of €525.0 million and designated as hedging instruments

in a cash flow hedge.

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument

fails to meet its obligations under the contract or arrangement. The Group has limited concentration

of credit risk across trade and financial counterparties. Credit policies are in place and the exposure to

credit risk is monitored on an ongoing basis.

The Group’s maximum exposure to credit risk in the event that counterparties fail to meet their

obligations at 31 December 2023 in relation to each class of recognised financial asset is the carrying

amount of those assets as indicated on the balance sheet.

Under the credit policies, before accepting any new credit customers, the Group investigates the

potential customer’s credit quality, using either external agencies and in some cases bank references

and/or historic experience, and defines credit limits for each customer. Customers that fail to meet

the Group’s benchmark credit quality may transact with the Group only on a prepayment or cash basis.

Customers are reviewed on an ongoing basis and credit limits are adjusted accordingly. The Group

also carries credit insurance on a portion of the accounts receivable balance. There is no significant

concentration of credit risk with regard to loans, trade and other receivables as the Group has a large

number of customers which are geographically dispersed.

The Group has policies that limit the amount of credit exposure to any single financial institution.

The Group only undertakes investment and derivative transactions with banks and financial institutions

that have a minimum credit rating of ‘BBB-’ from Standard & Poor’s and ‘Baa3’ from Moody’s, unless the

investment is in countries where the Sovereign Credit Rating is below the ‘BBB-/Baa3’. The Group also

uses Credit Default Swaps of a counterparty in order to measure in a 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 and will try to cancel any deposits on a best-effort

basis. In addition, the Group regularly makes use of time deposits and money market funds to invest

excess cash balances and to diversify its counterparty risk. As at 31 December 2023, an amount of

€54.8 million (2022: €529.5 million) is invested in time deposits with tenor more than three months

and €513.8 million (2022: €497.2 million) is invested in money market funds.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 244

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

Liquidity risk

The Group actively manages liquidity risk to ensure there are sufficient funds available for any

short-term and long-term commitments. Bank overdrafts and bank facilities, both committed

and uncommitted, are used to manage this risk.

The Group manages liquidity risk by maintaining adequate cash reserves and committed banking

facilities, access to the debt and equity capital markets, and by continuously monitoring forecast and

actual cash flows. In Note 26, the undrawn facilities that the Group has at its disposal to manage liquidity

risk are discussed under the headings ‘Commercial paper programme’, ‘Committed credit facilities’ and

‘Uncommitted loan agreement’.

As at 31 December 2023, the Group has a net debt of €1.6 billion (refer to Note 26), of which €600 million

Euro-denominated fixed rate bond matures in November 2024. In addition, the Group has an undrawn

revolving credit facility of €800 million available, €0.8 billion available out of the €1.0 billion commercial

paper facility, as well as undrawn uncommitted loan agreement of €200 million.

The following tables detail the Group’s remaining contractual maturities for its financial liabilities.

The tables include both interest and principal undiscounted cash flows, assuming that interest rates

remain constant from 31 December 2023.

	Up to	One to	Two to	Over
	one year	two years	five years	five years	Total
	€ million	€ million	€ million	€ million	€ million
Borrowings	923.2	546.0	775.3	1,132.4	3,376.9
Derivative liabilities	67.3	3.7	2.0	–	73.0
Trade and other payables
(excluding other tax
& social security and contract liabilities)	2,289.8	0.4	1.1	3.6	2,294.9
Leases	66.7	53.0	78.4	56.9	255.0
As at 31 December 2023	3,347.0	603.1	856.8	1,192.9	5,999.8

	Up to	One to	Two to	Over
	one year	two years	five years	five years	Total
	€ million	€ million	€ million	€ million	€ million
Borrowings	314.4	657.9	1,310.1	1,145.3	3,427.7
Derivative liabilities	41.9	3.5	0.2	–	45.6
Trade and other payables
(excluding other tax
& social security and contract liabilities)	2,158.0	0.4	1.1	3.8	2,163.3
Leases	67.2	55.5	85.6	49.1	257.4
As at 31 December 2022	2,581.5	717.3	1,397.0	1,198.2	5,894.0

Capital risk

Accounting policy

The Group monitors its financial capacity and credit ratings by reference to a number of key financial

ratios including net debt to comparable adjusted EBITDA, which provides a framework within which

the Group’s capital base is managed. This ratio is calculated as net debt divided by comparable

adjusted EBITDA.

Adjusted EBITDA is calculated by adding back to operating profit the depreciation and net

impairment of property, plant and equipment, the amortisation and impairment of intangible

assets, the employee performance share costs, the net impairment of equity method investments

and items, if any, reported in line ‘Other non-cash items’ of the consolidated cash flow statement.

Comparable adjusted EBITDA refers to adjusted EBITDA excluding restructuring expenses,

exceptional items related to Russia-Ukraine conflict, acquisition, integration and divestment-related

costs and the unrealised gains or losses resulting from the mark-to-market valuation of derivatives

and embedded derivatives related to commodity hedging.

Refer to Note 26 for definition of net debt.

The Group’s objectives when managing capital are to safeguard the Group’s 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.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 245

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

The Group’s goal is to maintain a conservative financial profile. This is evidenced by the credit ratings

maintained with Standard & Poor’s and Moody’s, which were reaffirmed in 2023, while the outlook by

Standard & Poor’s returned to stable in 2023 compared with negative in 2022.

Rating agency	Publication date	Long-term debt	Outlook	Short-term debt
Standard & Poor’s	May 2023	BBB+	Stable	A2
Moody’s	May 2023	Baa1	Stable	P2

The Group’s medium- to long-term target is to maintain the net debt to comparable adjusted EBITDA

ratio within a 1.5 to 2.0 range.

The ratios as at 31 December were as follows:

	2023	2022
	€ million	€ million
Net debt (refer to Note 26)	1,595.3	1,673.3
Operating profit	953.6	703.8
Depreciation and impairment of property, plant and equipment, including right-of-use assets	399.9	484.9
Amortisation and impairment of intangible assets	113.9	15.1
Employee performance shares	20.4	16.5
Impairment of equity method investments	–	52.8
Other non-cash items	–	70.5
Adjusted EBITDA	1,487.8	1,343.6
Other restructuring expenses (primarily redundancy costs)	7.6	11.8
Unrealised loss on commodity derivatives	4.6	2.5
Exceptional items related to Russia – Ukraine conflict	(0.2)	4.4
Acquisition and integration costs	6.3	9.2
Total comparable adjusted EBITDA	1,506.1	1,371.5
Net debt/comparable adjusted EBITDA ratio	1.06	1.22

Other non-cash items for 2022 relate to the net loss recognised in the income statement from the

remeasurement to fair value of the previously held equity interest, the reclassification to the income

statement of the Group’s share of other comprehensive income and the gain from bargain purchase

in connection with the change in control of Multon (refer to Note 24). These non-cash items were

classified as part of acquisition and integration costs within operating expenses.

The reconciliation of other restructuring expenses to total restructuring expenses for the years ended

31 December was as follows:

	2023	2022
	€ million	€ million
Total restructuring expenses included in operating expenses
(refer to Note 9)	9.0	11.9
Less: Impairment of property, plant and equipment presented
as part of restructuring expenses	(1.4)	(0.1)
Other restructuring expenses (primarily redundancy costs)	7.6	11.8

Hedging activity

The carrying amount of the derivative financial instruments are included in lines ‘Other financial assets’

and ‘Other financial liabilities’ of the consolidated balance sheet.

a) Cash flow hedges

The impact of the hedging instruments on the consolidated balance sheet was:

	Notional amount	Carrying amount	Period of
As at 31 December 2023	€ million	€ million	maturity date
Contracts with positive fair values	695.5	15.6
Non-current	79.0	4.0
Commodity swap contracts	79.0	4.0	Jan25 – Nov25
Current	616.5	11.6
Foreign currency forward contracts	15.0	0.2	Jan24 – Jun24
Interest rate contracts	525.0	1.9	Jun24
Commodity swap contracts	76.5	9.5	Jan24 – Dec24
Contracts with negative fair values	382.6	(23.2)
Non-current	80.3	(5.7)
Commodity swap contracts	80.3	(5.7)	Jan25 – Sep26
Current	302.3	(17.5)
Foreign currency forward contracts	136.8	(2.4)	Jan24 – Dec24
Commodity swap contracts	165.5	(15.1)	Jan24 – Dec24

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 246

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

	Notional amount	Carrying amount	Period of
As at 31 December 2022	€ million	€ million	maturity date
Contracts with positive fair values	172.6	19.2
Non-current	24.1	0.8
Commodity swap contracts	24.1	0.8	Jan24 – Feb25
Current	148.5	18.4
Foreign currency forward contracts	61.6	0.4	Jan23 – Sep23
Commodity swap contracts	86.9	18.0	Jan23 – Dec23
Contracts with negative fair values	221.3	(14.4)
Non-current	54.7	(3.6)
Commodity swap contracts	54.7	(3.6)	Jan24 – Nov25
Current	166.6	(10.8)
Foreign currency forward contracts	66.6	(0.8)	Jan23 – Jun23
Commodity swap contracts	100.0	(10.0)	Jan23 – Dec23

The impact on the hedging reserve as a result of applying cash flow hedge accounting was:

	Spot	Cost of
	component	hedging reserve
	of foreign	of foreign	Commodity	Interest
	currency	currency	swap	rate swap
	contracts	contracts	contracts	contracts	Total
	€ million	€ million	€ million	€ million	€ million
Opening balance as at 1 January 2022	(1.4)	0.4	41.7	(24.8)	15.9
Net gain of cash flow hedges	4.8	–	17.4	12.4	34.6
Change in fair value of hedging
instruments recognised in OCI	4.8	–	20.6	5.1	30.5
Reclassified to income statement	–	–	(3.2)	7.3	4.1
Cost of hedging recognised in OCI	–	(1.8)	–	(1.7)	(3.5)
Reclassified to inventories cost	(5.1)	1.8	(48.1)	–	(51.4)
Closing balance as at 31 December 2022	(1.7)	0.4	11.0	(14.1)	(4.4)
Net gain of cash flow hedges	(0.8)	–	14.1	6.4	19.7
Change in fair value of hedging
instruments recognised in OCI	(0.8)	–	14.5	(0.2)	13.5
Reclassified to income statement	–	–	(0.4)	6.6	6.2
Cost of hedging recognised in OCI	–	(3.9)	–	(3.2)	(7.1)
Reclassified to inventories cost	(1.2)	4.1	(33.7)	–	(30.8)
Closing balance as at 31 December 2023	(3.7)	0.6	(8.6)	(10.9)	(22.6)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 247

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

The effect of the cash flow hedges in the consolidated income statement was:

	2023	2022
	(Gain)/loss	(Gain)/loss
	€ million	€ million
Net amount reclassified from other comprehensive income
to cost of goods sold	(0.4)	(3.2)
Net amount reclassified from other comprehensive income
to finance costs	6.6	7.3
Total	6.2	4.1

The ineffectiveness on the cash flow hedges for the year ended 31 December 2023 was €2.6 million

loss (2022: €2.6 million loss) recorded within cost of goods sold.

b) Undesignated hedges

The fair values of derivative financial instruments as at 31 December which economically hedge

Group’s risks and for which hedge accounting has not been applied were:

	Notional amount	Carrying amount	Period of
As at 31 December 2023	€ million	€ million	maturity date
Contracts with positive fair values	545.8	85.9
Current	545.8	85.9
Foreign currency future contracts	177.6	82.9	Jan24 – Jun 24
Foreign currency forward contracts	366.2	2.9	Jan24 – Dec24
Commodity swap contracts	2.0	0.1	Sep24 – Oct24
Contracts with negative fair values	468.3	(49.8)
Current	468.3	(49.8)
Embedded derivatives	21.4	(9.1)	Jan24 – Dec24
Foreign currency forward contracts	426.6	(39.3)	Jan24 – Dec24
Commodity swap contracts	20.3	(1.4)	Jan24 – Nov24

	Notional amount	Carrying amount	Period of
As at 31 December 2022	€ million	€ million	maturity date
Contracts with positive fair values	276.4	16.9
Current	276.4	16.9
Foreign currency future contracts	146.8	3.9	Jan23 – Nov23
Foreign currency forward contracts	117.9	10.7	Jan23 – Dec23
Commodity swap contracts	11.7	2.3	Oct23 – Dec23
Contracts with negative fair values	552.8	(31.2)
Non-current	3.6	(0.1)
Commodity swap contracts	3.6	(0.1)	Jun24 – Sep 25
Current	549.2	(31.1)
Foreign currency future contracts	84.1	(2.5)	Apr23 – Dec23
Foreign currency forward contracts	433.8	(21.9)	Jan23 – Dec23
Commodity swap contracts	31.3	(6.7)	Feb23 – Nov23

The effect of the undesignated hedges in the consolidated income statement was:

	2023	2022
	Loss/(gain)	(Gain)/loss
	€ million	€ million
Net amount recognised in cost of goods sold	6.9	(34.9)
Net amount recognised in operating expenses	(40.4)	(26.0)
Net amount recognised in finance cost	(30.5)	3.5
Total	(64.0)	(57.4)

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 248

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

Financial instruments’ categories

Categories of financial instruments as at 31 December were as follows (in € million):

2023

							Analysis of total assets
			Derivatives	Equity
	Debt financial		designated	financial	Total
	assets at	Assets at	as hedging	assets at	current and
Assets	amortised cost	FVTPL	instruments	FVOCI	non-current	Current	Non-current
Investments including loans
to related parties	60.1	519.7	–	9.9	589.7	570.4	19.3
Derivative financial
instruments	–	85.9	15.6	–	101.5	97.5	4.0
Trade and other receivables	1,054.0	–	–	–	1,054.0	1,051.5	2.5
Cash and cash equivalents	1,260.6	–	–	–	1,260.6	1,260.6	–
Total	2,374.7	605.6	15.6	9.9	3,005.8	2,980.0	25.8

						Analysis of total assets
	Liabilities		Derivatives
	held at		designated	Total
	amortised	Liabilities at	as hedging	current and
Liabilities	cost	FVTPL	instruments	non-current	Current	Non-current
Trade and other payables
(excluding other tax & social
security and contract liabilities)	2,294.9	–	–	2,294.9	2,289.8	5.1
Borrowings	3,424.5	–	–	3,424.5	948.1	2,476.4
Derivative financial instruments	–	49.8	23.2	73.0	67.3	5.7
Total	5,719.4	49.8	23.2	5,792.4	3,305.2	2,487.2

2022

							Analysis of total assets
			Derivatives	Equity
	Debt financial		designated	financial	Total
	assets at	Assets at	as hedging	assets at	current and
Assets	amortised cost	FVTPL	instruments	FVOCI	non-current	Current	Non-current
Investments including loans
to related parties	534.8	498.7	–	3.6	1,037.1	1,028.5	8.6
Derivative financial
instruments	–	16.9	19.2	–	36.1	35.3	0.8
Trade and other receivables	1,019.3	–	–	–	1,019.3	1,017.0	2.3
Cash and cash equivalents	719.9	–	–	–	719.9	719.9	–
Total	2,274.0	515.6	19.2	3.6	2,812.4	2,800.7	11.7

						Analysis of total assets
	Liabilities		Derivatives
	held at		designated	Total
	amortised	Liabilities at	as hedging	current and
Liabilities	cost	FVTPL	instruments	non-current	Current	Non-current
Trade and other payables
(excluding other tax & social
security and contract liabilities)	2,163.3	–	–	2,163.3	2,158.0	5.3
Borrowings	3,419.9	–	–	3,419.9	337.0	3,082.9
Derivative financial instruments	–	31.2	14.4	45.6	41.9	3.7
Total	5,583.2	31.2	14.4	5,628.8	2,536.9	3,091.9

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 249

Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

Interest rate swap contracts

The Group entered into forward starting swap contracts of €500.0 million in 2014 to hedge the interest

rate risk related to its Euro-denominated forecast issuance of fixed rate debt in March 2016. In August

2015, the Group entered into additional forward starting swap contracts of €100.0 million. In March

2016, the forward starting swap contracts were settled, and at the same time, the new note was issued.

The accumulated loss of €55.4 million recorded in other comprehensive income is being reclassified to

the income statement over the term of the new note.

The Group entered into swaption contracts of €350.0 million in 2018 and €1,050.0 million in 2019 to

hedge the interest rate risk related to its Euro-denominated forecast issuance of fixed rate debt in

2019 and formally designated them as cash flow hedges. In May and November 2019, the swaption

contracts were settled and, at the same time, the new notes were issued. The accumulated loss of €9.6

million recorded in other comprehensive income is being reclassified to the income statement over the

relevant period.

The Group entered into swaption contracts of €180.0 million in 2022 to hedge the interest rate risk

related to its Euro-denominated forecast issuance of fixed rate debt in 2022 and formally designated

them as cash flow hedges. In September 2022, the swaption contracts were settled and, at the

same time, the new notes were issued. The accumulated gain of €3.4 million recorded in other

comprehensive income is being reclassified to the income statement over the relevant period.

The Group entered into swaption contracts of €525.0 million in 2023 to hedge the interest rate risk

related to its Euro-denominated forecast issuance of fixed rate debt in 2024 and formally designated

them as cash flow hedges. The valuation of the outstanding swaptions for the year ended 31 December

2023 was €3.4 million loss recorded in other comprehensive income.

Embedded derivatives

During 2023, the Group recognised embedded derivatives whose risks and economic characteristics

are 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 2023 amounted to a financial liability of €9.1

million (2022: €nil).

Fair values of financial assets and liabilities

For financial instruments such as cash, deposits, debtors and creditors, investments, loans payable

to related parties, short-term borrowings (excluding the current portion of bonds and notes payable)

and other financial liabilities (other than bonds and notes payable), carrying values are a reasonable

approximation of their fair values. According to the fair value hierarchy, the financial instruments

measured at fair value are classified as follows:

Level 1

The fair value of FVOCI listed equity securities as well as FVTPL 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.

Level 2

The fair value of foreign currency forward, option and futures contracts, commodity swap contracts,

bonds and notes payable, interest rate option and swap contracts, forward starting swap contracts

and embedded foreign currency derivatives is determined by using valuation techniques, which

maximise the use of observable market data and include discounting. 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 and deposit rates, interest rates and forward rate curves of the underlying commodity at the

reported date for contracts with similar maturity dates. The fair value of interest rate option contracts

is calculated by reference to the Black-Scholes valuation model and implied volatilities. The fair value of

interest rate swap contracts is determined as the difference in the present value of the future interest

cash inflows and outflows based on observable yield curves.

Level 3

The fair value of FVOCI unlisted equity securities as well as convertible note agreements, certain

undesignated derivatives and foreign currency futures and forward contracts is determined through

the use of estimated discounted cash flows or other valuation techniques that use unobservable

inputs. These valuation techniques estimate the fair value of undesignated derivatives by using

settlement and forward prices received from counterparty banks and subscription-based publications

and the fair value of foreign currency futures and forward contracts by using adjusted quoted prices.

Transfers between levels of the fair value hierarchy are deemed to have occurred at the date of the

event or change in circumstances that caused the transfer.

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Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

The following table provides the fair value hierarchy levels into which fair value measurements are

categorised for assets and liabilities measured at fair value as at 31 December 2023:

	Level 1	Level 2	Level 3	Total
	€ million	€ million	€ million	€ million
Financial assets at FVTPL
Foreign currency forward contracts	–	2.9	–	2.9
Foreign currency futures contracts	–	–	82.9	82.9
Commodity swap contracts	–	0.1	–	0.1
Money market funds	513.8	–	–	513.8
Convertible note agreements	–	–	5.9	5.9
Derivative financial assets used
for hedging
Cash flow hedges
Foreign currency forward contracts	–	0.2	–	0.2
Interest rate swap contracts	–	1.9	–	1.9
Commodity swap contracts	–	13.5	–	13.5
Assets at FVOCI
Equity securities	1.1	–	8.8	9.9
Total financial assets	514.9	18.6	97.6	631.1
Financial liabilities at FVTPL
Foreign currency forward contracts	–	(4.3)	(35.0)	(39.3)
Embedded derivatives	–	(9.1)	–	(9.1)
Commodity swap contracts	–	(0.2)	(1.2)	(1.4)
Derivative financial liabilities used
for hedging
Cash flow hedges
Foreign currency forward contracts	–	(2.4)	–	(2.4)
Commodity swap contracts	–	(20.8)	–	(20.8)
Total financial liabilities	–	(36.8)	(36.2)	(73.0)

There were no transfers between Level 1, Level 2 and Level 3 in the year.

The following table provides the fair value hierarchy levels into which fair value measurements are

categorised for assets and liabilities measured at fair value as at 31 December 2022:

	Level 1	Level 2	Level 3	Total
	€ million	€ million	€ million	€ million
Financial assets at FVTPL
Foreign currency forward contracts	–	10.7	–	10.7
Foreign currency futures contracts	–	–	3.9	3.9
Commodity swap contracts	–	0.2	2.1	2.3
Money market funds	497.2	–	–	497.2
Convertible note agreements	–	–	1.5	1.5
Derivative financial assets used for hedging
Cash flow hedges
Foreign currency forward contracts	–	0.4	–	0.4
Commodity swap contracts	–	18.8	–	18.8
Assets at FVOCI
Equity securities	0.7	–	2.9	3.6
Total financial assets	497.9	30.1	10.4	538.4
Financial liabilities at FVTPL
Foreign currency forward contracts	–	(18.2)	(3.7)	(21.9)
Embedded derivatives	–	–	(2.5)	(2.5)
Commodity swap contracts	–	(0.9)	(5.9)	(6.8)
Derivative financial liabilities used for hedging
Cash flow hedges
Foreign currency forward contracts	–	(0.8)	–	(0.8)
Commodity swap contracts	–	(13.6)	–	(13.6)
Total financial liabilities	–	(33.5)	(12.1)	(45.6)

There were no transfers between Level 1, Level 2 and Level 3 in 2022.

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Notes to the consolidated financial statements continued

25. Financial risk management and financial instruments continued

The following table presents the changes in Level 3 items for the years ended 31 December 2023

and 2022:

		Foreign		Convertible
	Commodity	currency	Equity	note
	swap contracts	contracts	securities	agreements	Total
	€ million	€ million	€ million	€ million	€ million
Balance as at 1 January 2022	(0.9)	(3.9)	2.9	–	(1.9 )
Gains/(losses) recognised
in income statement	19.1	(1.7)	–	–	17.4
(Proceeds from)/payments
for settlement of derivatives	(22.0)	3.3	–	–	(18.7 )
Addition of financial assets at FVTPL	–	–	–	1.5	1.5
Balance as at 31 December 2022	(3.8)	(2.3)	2.9	1.5	(1.7 )
(Losses)/gains recognised
in income statement	(0.8)	106.1	–	–	105.3
Payments for/(proceeds from)
settlement of derivatives	4.4	(29.2)	–	–	(24.8 )
Addition of financial assets at FVOCI	–	–	5.9	–	5.9
Capitalised Interest	–	–	–	0.2	0.2
Addition of financial assets at FVTPL	–	–	–	4.2	4.2
Foreign currency translation	(1.0)	(26.7)	–	–	(27.7 )
Balance as at 31 December 2023	(1.2)	47.9	8.8	5.9	61.4

26. 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 the effective interest rate method whereby any discount,

premium or transaction costs associated with a borrowing are amortised to the income statement

over the borrowing period.

Refer also to Note 17 for accounting policy on leases.

Cash and cash equivalents comprise cash balances and short-term, highly liquid investments

that are readily convertible to known amounts of cash and which are subject to insignificant risk of

change in value. Bank overdrafts are classified as short-term borrowings in the balance sheet and

for the purpose of the cash flow statement. Time deposits and treasury bills that do not meet the

definition of cash and cash equivalents are classified as short-term investments at amortised cost.

Money market funds are classified as short-term investments at fair value through profit or loss.

The Group has elected to report cash receipts and payments regarding investments at amortised

cost and fair value through profit or loss respectively, on a net basis in the consolidated cash flow

statement, considering that the relevant amounts are large, turnover is quick and maturities (where

applicable) are short. These investments are expected to be continually renewed, taking into

account market returns and cash generation by the Group.

Net debt is defined as current borrowings plus non-current borrowings less cash and cash

equivalents, and certain other financial assets.

Net debt for the year ended 31 December comprised:

		2023	2022
		€ million	€ million
Current borrowings		948.1	337.0
Non-current borrowings		2,476.4	3,082.9
Less: Cash and cash equivalents		(1,260.6)	(719.9)
•	Financial assets at amortised cost	(54.8)	(529.5)
•	Financial assets at fair value through profit or loss	(513.8)	(497.2)
Less: Other financial assets		(568.6)	(1,026.7)
Net debt		1,595.3	1,673.3

The financial assets at amortised cost relate to time deposits, while the financial assets at fair value

through profit or loss relate to money market funds. Line ‘Other financial assets’ of the consolidated

balance sheet includes derivative financial instruments of €97.5 million (31 December 2022: €35.3

million) and related party loans receivable of €1.8 million (31 December 2022: €1.8 million).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 252

Notes to the consolidated financial statements continued

26. Net debt continued

a) Borrowings

The Group held the following borrowings as at 31 December:

	2023	2022
	€ million	€ million
Bonds, bills and unsecured notes	599.5	–
Commercial paper	211.0	167.5
Loans payable to related parties (refer to Note 28)	2.7	–
Other borrowings	79.6	115.6
	892.8	283.1
Obligations under leases falling due within one year	55.3	53.9
Total borrowings falling due within one year	948.1	337.0
Borrowings falling due within one to two years
Bonds, bills and unsecured notes	497.1	599.0
Borrowings falling due within two to five years
Bonds, bills and unsecured notes	697.8	1,192.5
Borrowings falling due in more than five years
Bonds, bills and unsecured notes	1,092.9	1,091.9
Other borrowings	33.8	47.4
	2,321.6	2,930.8
Obligations under leases falling due in more than one year	154.8	152.1
Total borrowings falling due after one year	2,476.4	3,082.9
Total borrowings	3,424.5	3,419.9

Reconciliation of liabilities to cash flows arising from financing activities:

		Borrowings		Leases
		Due in more		Due in more	Derivative
	Due within	than one	Due within	than one	assets/
	one year	year	one year	year	(liabilities)	Total
	€ million	€ million	€ million	€ million	€ million	€ million
Balance as at 1 January 2022	330.8	2,446.3	50.9	109.4	2.3	2,939.7
Cash flows
Proceeds from borrowings	150.0	500.0	–	–	–	650.0
Repayments of borrowings	(358.2)	(0.4)	–	–	–	(358.6)
Principal repayments of lease obligations	–	–	(65.2)	–	–	(65.2)
Interest paid	(40.9)	(5.2)	(14.3)	–	–	(60.4)
Proceeds from settlement of derivatives
regarding financing activities	–	–	–	–	0.1	0.1
Total cash flows	(249.1)	494.4	(79.5)	–	0.1	165.9
Leases increase	–	–	0.9	90.3	–	91.2
Arising from business combinations	179.3	–	5.0	34.0	–	218.3
Effect of changes in exchange rates	(15.5)	(0.9)	(1.6)	(12.0)	–	(30.0)
Other non-cash movements	37.6	(9.0)	78.2	(69.6)	(5.7)	31.5
Balance as at 31 December 2022	283.1	2,930.8	53.9	152.1	(3.3)	3,416.6
Cash flows
Proceeds from borrowings	136.4	–	–	–	–	136.4
Repayments of borrowings	(89.7)	–	–	–	–	(89.7)
Principal repayments of lease obligations	–	–	(59.1)	–	–	(59.1)
Interest paid	(61.3)	–	(14.9)	–	–	(76.2)
Proceeds from settlement of derivatives
regarding financing activities	–	–	–	–	4.6	4.6
Total cash flows	(14.6)	–	(74.0)	–	4.6	(84.0)
Leases increase	–	–	2.2	84.5	–	86.7
Arising from business combinations	–	–	0.5	6.0	–	6.5
Effect of changes in exchange rates	(20.5)	(26.7)	(7.0)	(17.1)	–	(71.3)
Other non-cash movements	644.8	(582.5)	79.7	(70.7)	(16.2)	55.1
Balance as at 31 December 2023	892.8	2,321.6	55.3	154.8	(14.9)	3,409.6

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 253

Notes to the consolidated financial statements continued

26. Net debt continued

The ‘Other non-cash movements’ primarily include the transfer from long-term to short-term liabilities

and interest incurred as well as the decrease to borrowings in 2022, resulting from the change in control

of Multon (refer to Note 16).

Commercial paper programme

In October 2013 the Group established a €1.0 billion Euro commercial paper programme (the ‘CP

programme’), which was updated in September 2014, in May 2017, in May 2020 and then in May 2023,

to further diversify its short-term funding sources. The Euro commercial paper notes may be issued

either as non-interest-bearing notes sold at a discount or as interest-bearing notes at a fixed or floating

rate. All commercial paper issued under the CP programme must be repaid within 7 to 364 days.

The CP programme has been granted the Short Term Euro Paper (STEP) label and commercial paper

is issued through Coca-Cola HBC’s fully-owned subsidiary Coca-Cola HBC Finance B.V. and is fully,

unconditionally and irrevocably guaranteed by Coca-Cola HBC AG. The outstanding amount under

the CP programme as at 31 December 2023 was €211.0 million (2022: €167.5 million).

Committed credit facilities

In April 2019, the Group updated its then-existing €500.0 million syndicated revolving credit facility,

which was set to expire in June 2021. The updated syndicated revolving credit facility has been

increased to €800.0 million and has been extended to April 2024, with the option to be extended up for

two more years until April 2026. In March 2020, the Company exercised its extension option and the

facility was extended to April 2025. In April 2021, the Company exercised its second option to further

extend the maturity of the syndicated loan facility to April 2026. This facility can be used for general

corporate purposes and carries a floating interest rate over EURIBOR. No amounts have been drawn

under the syndicated revolving credit facility since inception. The borrower in the syndicated revolving

credit facility is Coca-Cola HBC’s fully-owned subsidiary Coca-Cola HBC Finance B.V. and any amounts

drawn under the facility are fully, unconditionally and irrevocably guaranteed by Coca-Cola HBC AG.

In December 2019, the Group established a loan facility of US Dollar 85.0 million to finance the purchase

of production equipment by the Group’s subsidiary in Nigeria. The facility has been drawn down by

Nigerian Bottling Company (NBC) over the course of 2020 and 2021, maturing in 2027. The obligations

under this facility are guaranteed by Coca-Cola HBC AG. As at 31 December 2023, the outstanding

liability amounted to €45.4 million (2022: €59.3 million).

Uncommitted loan agreement

In August 2022, the Group established an uncommitted money market loan agreement of €250.0

million which was subsequently reduced to €200.0 million in October 2022. The loan agreement can

be used for general corporate purposes. No amounts have been drawn under the money market loan

agreement since its inception. The borrower in the money market loan agreement is Coca-Cola HBC’s

fully-owned subsidiary Coca-Cola HBC Finance B.V.

Euro medium-term note programme

In June 2013, the Group established a new €3.0 billion Euro medium-term note programme (the

‘EMTN programme’). The EMTN programme was updated in September 2014, September 2015, April

2019, when it was increased to €5.0 billion, April 2020, September 2021, September 2022 and then in

December 2023. Notes are issued under the EMTN programme through Coca-Cola HBC’s fully-owned

subsidiary Coca-Cola HBC Finance B.V. and are fully, unconditionally and irrevocably guaranteed by

Coca-Cola HBC AG.

In March 2016, Coca-Cola HBC Finance B.V. completed the issue of a €600 million Euro-denominated

fixed rate bond maturing in November 2024. The coupon rate of the bond is 1.875% which, including the

reclassification of the loss on the forward starting swap contracts to the income statement over the

term of the fixed rate bond, results in an effective interest rate of 2.99%. The net proceeds of the new

issue were used to partially repay €214.6 million of the 4.25%, €600 million seven-year fixed rate notes

due in November 2016. The remaining €385.4 million was repaid in November 2016 upon its maturity.

In May 2019, Coca-Cola HBC Finance B.V. completed the issue of a €700 million Euro-denominated

fixed rate bond maturing in May 2027 with a coupon rate of 1% and the issue of a €600 million Euro-

denominated fixed rate bond maturing in May 2031 with a coupon rate of 1.625%. The net proceeds

of the new issue were used to partially repay €236.6 million of the 2.375%, €800 million seven-year

fixed rate bond due in June 2020, while the remaining €563.4 million was repaid in June 2020 upon

its maturity.

In November 2019, Coca-Cola HBC Finance B.V. completed the issue of a €500 million Euro-

denominated fixed rate bond maturing in November 2029 with a coupon rate of 0.625%.

In September 2022, Coca-Cola HBC Finance B.V. completed the issue of a €500 million Euro-

denominated fixed rate Green bond maturing in September 2025 with a coupon rate of 2.75%.

As at 31 December 2023, a total of €2.9 billion in notes issued under the EMTN programme

were outstanding.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 254

Notes to the consolidated financial statements continued

26. Net debt continued

Summary of notes outstanding as at 31 December

				Book value		Fair value
Notes			Fixed	2023	2022	2023	2022
€ million	Start date	Maturity date	coupon	€ million	€ million	€ million	€ million
€600	10 March 2016	11 November 2024	1.875%	599.5	599.0	590.3	582.0
€700	14 May 2019	14 May 2027	1.000%	697.8	697.1	656.9	626.6
€600	14 May 2019	14 May 2031	1.625%	596.9	596.5	540.7	497.1
€500	21 November 2019	21 November 2029	0.625%	496.0	495.4	433.7	403.9
€500	23 September 2022	23 September 2025	2.750%	497.1	495.4	495.8	486.0
Total				2,887.3	2,883.4	2,717.4	2,595.6

The weighted average effective interest rate of the Euro-denominated fixed rate bonds is 1.89% and

the weighted average maturity is 3.9 years. The fair values are within Level 1 of the fair value hierarchy.

None of our debt facilities are subject to any financial covenants that would impact the Group’s liquidity

or access to capital.

Total borrowings as at 31 December were held in the following currencies:

	Current		Non-current
	2023	2022	2023	2022
	€ million	€ million	€ million	€ million
Euro	867.8	237.6	2,363.9	2,946.6
US Dollar	17.0	34.3	47.4	64.4
Egyptian Pound	41.0	39.3	17.5	23.5
Swiss Franc	4.4	4.5	17.8	4.7
Nigerian Naira	5.2	9.6	8.3	23.3
Russian Rouble	2.9	2.2	7.4	4.8
Bulgarian Lev	2.6	2.6	4.3	4.6
Polish Zloty	2.0	1.2	3.6	2.6
UK Sterling	2.8	1.7	1.7	2.4
Romanian Leu	1.0	1.4	1.8	1.5
Belarusian Rouble	0.1	0.1	0.7	0.8
Ukrainian Hryvnia	0.1	0.1	0.6	0.6

	Current		Non-current
	2023	2022	2023	2022
	€ million	€ million	€ million	€ million
Hungarian Forint	0.5	0.5	0.1	0.5
Czech Koruna	0.4	1.3	0.1	2.6
Bosnian Mark	0.1	0.3	–	–
Other	0.2	0.3	1.2	–
Total borrowings	948.1	337.0	2,476.4	3,082.9

The carrying amounts of interest-bearing borrowings held at fixed and floating interest rate as at

31 December 2023 were as follows:

	Fixed	Floating
	interest rate	interest rate	Total
	€ million	€ million	€ million
Euro	3,218.0	13.7	3,231.7
US Dollar	62.0	2.4	64.4
Egyptian Pound	58.5	–	58.5
Swiss Franc	22.2	–	22.2
Nigerian Naira	13.5	–	13.5
Russian Rouble	10.3	–	10.3
Bulgarian Lev	6.9	–	6.9
Polish Zloty	5.6	–	5.6
UK Sterling	1.7	2.8	4.5
Romanian Leu	0.9	1.9	2.8
Belarusian Rouble	0.8	–	0.8
Ukrainian Hryvnia	0.7	–	0.7
Hungarian Forint	0.6	–	0.6
Czech Koruna	0.5	–	0.5
Bosnian Mark	0.1	–	0.1
Other	1.4	–	1.4
Total interest-bearing borrowings	3,403.7	20.8	3,424.5

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 255

Notes to the consolidated financial statements continued

26. Net debt continued

b) Cash and Cash Equivalents

Cash and cash equivalents as at 31 December comprise the following:

	2023	2022
	€ million	€ million
Cash at bank, in transit and in hand	441.6	426.4
Short-term deposits	819.0	293.5
Total cash and cash equivalents	1,260.6	719.9

Cash and cash equivalents are held in the following currencies:

	2023	2022
	€ million	€ million
Euro	671.0	348.9
Russian Rouble	196.3	96.4
Nigerian Naira	92.5	120.9
US Dollar	80.8	51.9
Ukrainian Hryvnia	48.5	6.6
Egyptian Pound	35.9	6.1
UK Sterling	21.4	2.6
Armenian Dram	19.2	9.3
Serbian Dinar	16.9	7.0
Swiss Franc	15.4	16.6
Romanian Leu	13.6	9.2
Polish Zloty	13.1	14.6
Hungarian Forint	9.6	0.6
Belarusian Rouble	9.2	8.3
Czech Koruna	6.8	2.3
Moldovan Leu	6.3	8.8
Bosnian Mark	3.2	4.1
Other	0.9	5.7
Total cash and cash equivalents	1,260.6	719.9

As at 31 December 2023, time deposits of €54.8 million (2022: €529.5 million), which do not meet

the definition of cash and cash equivalents, are recorded as other financial assets.

Cash and cash equivalents include an amount of €92.5 million (€120.9 million as at 31 December 2022)

equivalent in Nigerian Naira. This includes an amount of €nil (€10.6 million as at 31 December 2022)

equivalent in Nigerian Naira, which related to the outstanding balance held for the repayment of NBC’s

former minority shareholders, following the 2011 acquisition of non-controlling interests. The financial

liability regarding former minority shareholders was extinguished in 2023.

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, Nigeria, Egypt,

Serbia and Ukraine, where these restrictions do not have a material impact on the Group’s 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. Intra-group dividends paid by certain

of our subsidiaries are also subject to withholding taxes.

As a result of sanctions and other regulations, there have been changes in required regulatory

approvals, potentially impacting the transfer and usage of cash outside of Russia. Cash and cash

equivalents held by the Group’s operations in Russia (including Multon) amounted to €278.7 million

equivalent in Russian Rouble, US Dollar and Euro as at 31 December 2023 (2022: €155.3 million). The

aforementioned changes restrict the usage of cash held in Russia outside the country; however, they

are not expected to have a material impact on the Group’s liquidity, as the cash and cash equivalents

held in Russia are expected to be used in the forthcoming financial periods primarily for working capital

purposes by the Russian operations.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 256

Notes to the consolidated financial statements continued

27. Equity

Accounting policy

Share capital

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 in 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.

Where the Group purchases the Company’s equity instruments, for example as the result of a share

buyback programme, the consideration paid, including any directly attributable incremental costs

(net of income taxes), is deducted from equity attributable to the owners of the parent as treasury

shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently

reissued, any consideration received, net of any directly attributable incremental transaction costs

and the related income tax effects, is included in equity attributable to the owners of the parent.

Dividends

Dividends are recorded in the Group’s consolidated financial statements, against the relevant equity

component, in the period in which they are approved by the Group’s shareholders.

a) Share capital, share premium and Group reorganisation reserve

	Number of			Group
	shares	Share	Share	reorganisation
	(authorised	capital	premium	reserve
	and issued)	€ million	€ million	€ million
Balance as at 1 January 2022	371,795,418	2,022.3	3,097.3	(6,472.1)
Shares issued to employees exercising
stock options (refer to Note 29)	290,677	2.0	2.7	–
Dividends	–	–	(262.6)	–
Balance as at 31 December 2022	372,086,095	2,024.3	2,837.4	(6,472.1)
Shares issued to employees exercising
stock options (refer to Note 29)	891,127	6.0	8.2	–
Dividends	–	–	(289.9)	–
Balance as at 31 December 2023	372,977,222	2,030.3	2,555.7	(6,472.1)

The Group reorganisation reserve relates to the impact from adjusting share capital, share premium

and treasury shares to reflect 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 redomiciliation of the

Group and its admission to listing in the premium segment of the London Stock Exchange, following

successful completion of the voluntary share exchange offer (refer also to Note 1). These transactions

were treated as a reorganisation of an existing entity that has not changed the substance of the

reporting entity.

In 2023, the share capital of Coca-Cola HBC increased by the issue of 891,127 (2022: 290,677)

new ordinary shares following the exercise of stock options pursuant to the Coca-Cola HBC AG’s

employees’ stock option plan. Total proceeds from the issuance of the shares under the stock option

plan amounted to €14.2 million (2022: €4.7 million).

Following the above changes, on 31 December 2023 the share capital of the Group amounted to

€2,030.3 million and comprised 372,977,222 shares with a nominal value of CHF 6.70 each.

b) Dividends

On 21 June 2022, the shareholders of Coca-Cola HBC AG at the Annual General Meeting approved a

dividend distribution of €0.71 per share. The total dividend amounted to €262.6 million and was paid

on 2 August 2022. Of this, an amount of €2.4 million related to shares held by the Group.

The shareholders of Coca-Cola HBC AG approved a dividend distribution of €0.78 per share at the

Annual General Meeting held on 17 May 2023. The total dividend amounted to €289.9 million and was

paid on 19 June 2023. Of this, an amount of €2.7 million related to shares held by the Group.

The Board of Directors of Coca-Cola HBC AG has proposed a €0.93 dividend per share in respect

of 2023. If approved by the shareholders of Coca-Cola HBC AG, this dividend will be paid in 2024.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 257

Notes to the consolidated financial statements continued

27. Equity continued

c) Treasury shares and reserves

The reserves of the Group at 31 December were as follows:

	2023	2022
	€ million	€ million
Treasury shares	(144.1)	(131.2)
Exchange equalisation reserve	(1,708.9)	(1,218.2)
Other reserves
Hedging reserve, net	(20.7)	(4.4)
Tax-free reserve	163.8	163.8
Statutory reserves	27.3	22.6
Stock option, performance share and deferred management
incentive share reserve	78.2	87.5
Financial assets at fair value through other comprehensive income reserve, net	0.8	0.5
Other	22.7	22.5
Total other reserves	272.1	292.5
Total reserves	(1,580.9)	(1,056.9)

Treasury shares

Treasury shares held by the Group represent shares acquired following approval of share buyback

programmes, forfeited shares under 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.

On 20 November 2023, the Group announced the launch of a share buyback programme of up to a

maximum of 18,000,000 ordinary shares to be purchased in a manner consistent with the Company’s

general authority to repurchase shares granted at its Annual General Meeting on 17 May 2023 and any

such authority granted at its subsequent annual general meetings. The programme commenced on

21 November 2023 and is expected to run for a period of around two years. As at 31 December 2023,

the Group had purchased shares under the programme for a total consideration of €42.6 million, which

was reflected in line ‘Acquisition of treasury shares’ of the consolidated cash flow statement and the

consolidated statement of changes in equity.

An amount of €29.7 million in 2023 (2022: €15.4 million) relates to treasury shares provided to

employees in connection with vested performance share and deferred management incentive share

awards under the Group’s employee incentive scheme, which was reflected as an appropriation

of reserves between ‘Treasury shares’ and ‘Other reserves’, more specifically the ‘Stock option,

performance share and deferred management incentive share reserve’ in the consolidated statement

of changes in equity.

As at 31 December 2023, 6,068,537 (2022: 5,386,717) treasury shares were held by the Group.

Exchange equalisation reserve

The exchange equalisation reserve comprises all foreign exchange differences arising from the

translation of the financial statements of Group entities with functional currencies other than the Euro.

Other reserves

Hedging reserve

The hedging reserve reflects changes in the fair values of derivatives accounted for as cash flow

hedges, net of the deferred tax related to such balances.

Tax-free and statutory reserves

The tax-free reserve includes investment amounts 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 entity,

Coca-Cola HBC AG, is €nil. During 2023, a net amount of €4.7 million was reclassified from retained

earnings to statutory reserves relating to the formation of additional reserves by the Group’s

subsidiaries (2022: €5.7 million net release of statutory reserves).

Stock option, performance share and deferred management incentive share reserve

The stock option, performance share and deferred management incentive share reserve represents

the cumulative charge to the income statement for employee stock option, performance share

and deferred management incentive share awards less the vested performance share and deferred

management incentive share awards.

Other

Other reserves are particular to the various countries in which the Group operates and include reserve

for shares held for the Group’s employee share purchase plan, which is an equity compensation plan

in which eligible employees may participate, as well as the Group’s share of changes in other reserves

of equity method investments.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 258

Notes to the consolidated financial statements continued

28. Related party transactions

a) The Coca-Cola Company

As at 31 December 2023, The Coca-Cola Company indirectly owned 21.0% (2022: 21.0%) of the

issued share capital of Coca-Cola HBC. Coca-Cola HBC’s business relationship with The Coca-Cola

Company is mainly governed by the bottlers’ agreements with The Coca-Cola Company, which are an

important element of Coca-Cola HBC’s business. The Coca-Cola Company considers Coca-Cola HBC

to be a ‘key bottler’. Following their expiry on 31 December 2023, all bottlers’ agreements in the CCH

territories where CCH Group produces, sells and distributes The Coca-Cola Company’s trademarked

beverages were renewed with effect as from 1 January 2024, for an initial term of ten years, with the

option for the CCH Group to request an extension (at the discretion of The Coca-Cola Company)

for another ten years upon expiry of the initial term. 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 Company’s beverages from The Coca-Cola Company, or its designee, in the ordinary

course of business.

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.

Accounting policy

Contributions from The Coca-Cola Company

The Coca-Cola Company participates at its discretion in shared marketing programmes with

the Group to promote the sale of The Coca-Cola Company products. Where such cooperative

arrangements are entered into, the Group receives contributions from The Coca-Cola Company

to offset the cost it has incurred for price support and marketing and promotional campaigns in

respect of specific customers as well as general marketing programmes.

These contributions from The Coca-Cola Company are classified as other income and are accrued

and matched to the expenditure to which they relate, in line with the substance of the arrangement

with The Coca-Cola Company as described above. These contributions are presented as follows:

• to the extent that they relate to compensation for costs incurred by the Group for price support

and marketing and promotional campaigns in respect of specific customers, which have been

treated as a deduction from revenue from contracts with customers, they are presented as an

offset against such deductions from revenue and accordingly, included within net sales revenue

in the consolidated income statement; and

• to the extent that they relate to compensation for expenditure incurred by the Group in

connection with general marketing programmes, they are presented as an offset against

this expenditure and accordingly, included within operating expenses in the consolidated

income statement.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 259

Notes to the consolidated financial statements continued

28. Related party transactions continued

The below table summarises transactions with The Coca-Cola Company and its subsidiaries:

	2023	2022
	€ million	€ million
Purchases of concentrate, finished products and other items	1,861.4	1,808.7
Net contributions received for marketing and promotional incentives	125.1	108.6
Sales of finished goods and raw materials	4.7	4.2
Other income	4.1	8.6
Other expenses	3.6	4.7

Contributions received from The Coca-Cola Company for marketing and promotional incentives

during the year amounted to €125.1 million (2022: €108.6 million) which can be analysed as follows:

contributions made by The Coca-Cola Company to Coca-Cola HBC for price support and marketing

and promotional campaigns in respect of specific customers in 2023 totalled €59.3 million (2022: €59.9

million) and were recognised as an offset against the relevant incentives provided to those customers

within net sales revenue (refer to Note 8), while contributions made by The Coca-Cola Company to

Coca-Cola HBC for general marketing programmes in 2023 totalled €65.8 million (2022: €48.7 million)

and were recognised against the relevant cost incurred within operating expenses (refer to Note 9). The

Coca-Cola Company has also customarily made additional 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 Company’s discretion, will not necessarily be the same from

year to year.

As at 31 December 2023, the Group had a total amount due from The Coca-Cola Company of €42.8

million (2022: €45.3 million), and a total amount due to The Coca-Cola Company of €273.4 million (2022:

€226.9 million).

Also, refer to Note 24 regarding consideration paid to The Coca-Cola Company during 2022 for the

purchase of the convertible loan and shares held by non-controlling interests in connection with the

acquisition of Coca-Cola Bottling Company of Egypt S.A.E.

b) Frigoglass S.A. (‘Frigoglass’), Kar-Tess Holding and AG Leventis (Nigeria) Ltd

Truad Verwaltungs AG currently indirectly owns 99.3% (31 December 2022: 99.3%) of AG Leventis

(Nigeria) Ltd and also indirectly controls Kar-Tess Holding, which holds approximately 23.0% (31

December 2022: 23.0%) of Coca-Cola HBC’s total issued capital.

As at 31 December 2022, Truad Verwaltungs AG also indirectly owned 48.4% of Frigoglass. Frigoglass,

a company listed on the Athens Exchange, is a manufacturer of coolers, cooler parts, glass bottles,

crowns and plastics. 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, 2013, 2018 and, most

recently, in 2021, on substantially similar terms. The current agreement expires on 31 December 2025.

In April 2023, Frigoglass restructured its debt, which resulted in changes to its ownership structure. The

restructured Frigoglass Group no longer meets the definition of related party as per IAS 24 ‘Related

party disclosures’ for Coca-Cola HBC AG. Accordingly, transactions with Frigoglass and its subsidiaries

up to April 2023 and the year ended 31 December 2022 are presented below:

	Four months ended	Year ended 31
	28 April 2023	December 2022
Frigoglass and subsidiaries	€ million	€ million
Purchases of coolers, cooler parts, glass bottles, crowns and raw
and other materials	24.4	112.3
Maintenance, rent and other expenses	10.0	33.1

1. Transactions and balances with Frigoglass Industries (Nigeria) Limited, an associate of the Group, for the year ended 31 December 2023

and as at 31 December 2023 respectively, are included in the ‘Other related parties’ section.

During 2022, the Group received dividends of €1.2 million from Frigoglass Industries (Nigeria) Limited,

which were included in line ‘Receipts from non-integral equity method investments’ of the consolidated

cash flow statement.

Transactions and balances with AG Leventis (Nigeria) Ltd for the years ended 31 December are

presented below:

	2023	2022
AG Leventis (Nigeria) Plc	€ million	€ million
Purchases of finished goods and other items	–	3.6
Other expenses	11.0	0.1

As at 31 December 2023, the Group owed €1.1 million (2022: €2.7 million) and had a lease liability of €1.2

million (2022: €4.2 million) to AG Leventis (Nigeria) Ltd.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 260

Notes to the consolidated financial statements continued

28. Related party transactions continued

c) Other related parties

The below table summarises transactions with other related parties:

	2023	2022
	€ million	€ million
Purchases	47.3	8.5
Other expenses	15.5	15.5

During 2023, the Group incurred subsequent expenditure for fixed assets of €3.2 million (2022: €3.0

million) and purchased coolers and other equipment as well as inventories of €44.1 million (2022: €5.5

million) from other related parties. Furthermore, during 2023, the Group incurred expenses of €15.5

million (2022: €15.5 million) mainly related to maintenance services for cold drink equipment and

installations of coolers, fountains, vending and merchandising equipment from other related parties.

As at 31 December 2023, the Group had a total amount due to other related parties of €9.1 million

(2022: €3.7 million) and was owed €6.7 million including loans receivable of €4.3 million and dividends

receivable of €nil (2022: €nil loans receivable and €5.2 million dividends receivable) from other related

parties.

During 2023, the Group received dividends of €7.0 million from non-integral associates (2022: €0.6

million), which are included in line ‘Receipts from non-integral equity method investments’ of the

consolidated cash flow statement and paid €nil in connection with capital increase of non-integral

associates (2022: €5.7 million, which was included in line ‘Payments for non-integral equity method

investments’ of the consolidated cash flows statement). During 2023, €nil regarding loans receivable

from other related parties was converted to equity (2022: €1.3 million regarding non-integral

associates).

Capital commitments to other related parties amounted to €3.8 million as at 31 December 2023 (€4.5

million as at 31 December 2022).

d) Joint ventures

The below table summarises transactions with joint ventures:

	2023	2022
	€ million	€ million
Purchases of finished goods	26.0	26.0
Sales of finished goods and raw materials	7.8	9.2
Other income	10.4	15.8
Other expenses	8.3	15.7

Included in ‘Other expenses’ in the above table is €nil (2022: €7.8 million) of interest charges from loans

with joint ventures.

As at 31 December 2023, the Group owed €8.6 million including loans payable of €2.7 million (2022:

€4.4 million including loans payable of €nil) to, and was owed €12.3 million including loans and dividends

receivable of €4.3 million and €2.6 million respectively (2022: €9.6 million including loans and dividends

receivable of €4.3 million and €nil respectively) by, joint ventures. During 2023, the Group received

dividends of €6.7 million from integral joint ventures (2022: €9.7 million), which were included in

line ‘Receipts from integral equity method investments’ of the consolidated cash flow statement.

Furthermore, during 2023, the Group paid €nil (2022: €4.0 million) in connection with capital increase of

integral joint venture which was included in line ‘Payment for integral equity method investment’ of the

consolidated cash flow statement.

e) Directors and senior management

Evguenia Stoichkova and George Leventis have been elected to the Board of Coca-Cola HBC, following

a proposal made by The Coca-Cola Company and Kar-Tess Holding respectively. There have been

no transactions between Coca-Cola HBC and the Directors and senior management except for

remuneration (refer to Note 9).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 261

Notes to the consolidated financial statements continued

29. Share-based payments

Accounting policy

Stock option, performance share award and deferred management incentive share plan

Coca-Cola HBC provides equity-settled share-based payments to its senior managers in the form

of an employee stock option, performance share award and deferred management incentive plan

(the ‘Plan’).

Stock options under the Plan are measured at fair value at the date of grant. Fair value reflects

the parameters of the compensation plan, the risk-free interest rate, the expected volatility, the

dividend yield and the early exercise experience under the Plan. Expected volatility is determined by

calculating the historical volatility of Coca-Cola HBC’s share price over previous years. The fair value

determined at the grant date is expensed on a straight-line basis over the vesting period.

The Plan offers a specified number of performance share awards and deferred management

incentive plan shares (the ‘deferred MIP shares’) that vest three years after the grant. The fair value

is determined at the grant date and reflects the parameters of the compensation plan, the dividend

yield and the closing share price on the date of grant. 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.

When the terms of an equity-settled award are modified, the minimum expense recognised is the

grant date fair value of the unmodified award, provided the original vesting terms of the award

are met. An additional expense, measured as at the date of modification, is recognised for any

modification that increases the total fair value of the share-based payment transaction, or is

otherwise beneficial to the employee.

Employee Share Purchase Plan

The Group operates an employee share purchase plan (the ‘ESPP’), 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 contributions.

The charge included in employee costs regarding share-based payments for the years ended

31 December is analysed as follows:

	2023	2022
	€ million	€ million
Performance share awards and deferred MIP shares	20.6	15.5
Employee Share Purchase Plan	6.7	6.1
Total share-based payments charge	27.3	21.6

Terms and conditions

Stock option, performance share award and deferred management incentive share plan

The Group has not issued any new stock options since 2014. Based on Plan rules, senior managers

were granted awards of stock options, based on performance, potentiality and level of responsibility.

Options were granted at an exercise price equal to the closing price of the Company’s shares trading

on the London Stock Exchange on the day of the grant and vested in one third increments each year

for three years. Options can be exercised for up to ten years from the date of award. When the options

are exercised, the proceeds received by the Group, net of any transaction costs, are credited to share

capital (at the nominal value) and share premium.

Since 2015, performance shares are the primary long-term award. Senior managers are granted

performance share awards, which have a three-year vesting period and are linked to Group-specific

key performance indicators. The closing price of the Company’s shares trading on the London Stock

Exchange on the day of the grant is used to determine the number of performance share awards

granted. In 2018, the Group modified the performance share plan, in order for eligible employees

to receive upon vesting, additionally to the specific number of shares, the value of dividends

corresponding to the years from grant till vest date, subject to the approval of the Remuneration

Committee. Furthermore, 50% of the Chief Executive Officer’s annual bonus awarded under the terms

of the management incentive plan is deferred into shares, which vest over a three-year period, subject

to service conditions. No dividend-equivalent shares corresponding to the years from grant till vest

date are provided, in connection with the deferred shares granted.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 262

Notes to the consolidated financial statements continued

29. Share-based payments continued

Employee Share Purchase Plan

The Employee Share Purchase Plan is administered by a Plan Administrator. Under the terms of this

plan, employees have the opportunity to invest 1% to 15% of their salary in ordinary Coca-Cola HBC

shares by contributing to the plan through a payroll deduction. Employee deductions are used monthly

to purchase ordinary Coca-Cola HBC shares in the open market (London Stock Exchange).

Coca-Cola HBC will match employee contributions up to a maximum of 3% of the employee’s salary.

Employer matching cash contributions vest one year after the grant, at which time they are used to

purchase matching shares on the open market that are immediately vested. Dividends received in

respect of shares held under this plan are used to purchase additional shares at the time of dividend

distribution. Shares are held under the Plan Administrator. For employees resident in Greece, Coca-

Cola HBC matches the employees’ contribution with an annual employer contribution of up to 5% of the

employees’ salary that vests annually in December of each year.

Stock option activity

The outstanding stock options are fully vested and are exercisable until 2025.

A summary of stock option activity in 2023 under all grants is as follows:

	Number	Weighted	Weighted
	of stock	average	average
	options	exercise price	exercise price
	2023	2023 (EUR)	2023 (GBP)
Outstanding as at 1 January	1,697,730	16.02	14.15
Exercised	(891,127)	16.15	14.01
Outstanding as at 31 December	806,603	16.49	14.31
Exercisable as at 31 December	806,603	16.49	14.31

A summary of stock option activity in 2022 under all grants is as follows:

	Number	Weighted	Weighted
	of stock	average	average
	options	exercise price	exercise price
	2022	2022 (EUR)	2022 (GBP)
Outstanding as at 1 January	2,338,855	18.08	15.21
Exercised	(290,677)	16.05	14.17
Expired	(350,448)	24.01	21.20
Outstanding as at 31 December	1,697,730	16.02	14.15
Exercisable as at 31 December	1,697,730	16.02	14.15

1. For convenience purposes, the prices are translated at the closing exchange rate.

Total proceeds from the issuance of the shares under the stock option plan in 2023 amounted to €14.2

million (2022: €4.7 million).

The weighted average remaining contractual life of stock options outstanding at 31 December 2023

was 1.5 years (2022: 1.9 years).

Performance shares and deferred MIP shares activity

A summary of performance shares and deferred MIP shares activity is as follows:

	Number of	Number of
	shares	shares
	2023	2022
Outstanding as at 1 January	2,976,201	2,475,367
Granted	1,146,585	1,301,669
Vested	(947,825)	(516,156)
Forfeited/cancelled	(218,413)	(284,679)
Outstanding as at 31 December	2,956,548	2,976,201

2. Includes dividend equivalent shares.

The weighted average remaining contractual life of performance shares and deferred MIP shares

outstanding at 31 December 2023 was 1.3 years (2022: 1.3 years).

The weighted average fair value for the 2023 performance share award and deferred MIP share plan was

£21.21 per share (2022: £15.95). Relevant inputs into the valuation were as follows:

	2023	2022
Weighted average share price	£21.25	£15.98
Dividend yield	nil	nil
Weighted average exercise period	3.0 years	3.0 years

3. Dividend yield in connection with the valuation of deferred MIP shares granted during 2023 was 3.2% (2022: 3.2%).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 263

Notes to the consolidated financial statements continued

30. Contingencies

In relation to the Greek Competition Authority’s decision of 25 January 2002, one of Coca-Cola

Hellenic Bottling Company S.A.’s competitors had filed a lawsuit against Coca-Cola Hellenic Bottling

Company S.A. claiming damages in an amount of €7.7 million. The court of first instance heard the

case on 21 January 2009 and subsequently rejected the lawsuit. The plaintiff appealed the judgement

and on 9 December 2013 the Athens Court of Appeals rejected the plaintiff’s appeal. On 19 April 2014,

the same plaintiff filed a new lawsuit against Coca-Cola Hellenic Bottling Company S.A. (following the

spin-off, Coca-Cola HBC Greece S.A.I.C.) claiming payment of €7.5 million as compensation for losses

and moral damages for alleged anti-competitive commercial practices of Coca-Cola Hellenic Bottling

Company S.A. between 1994 and 2013. On 21 December 2018, the plaintiff served their withdrawal

from the lawsuit. However, on 20 June 2019, the same plaintiff filed a new lawsuit against Coca-Cola

HBC Greece S.A.I.C. claiming payment of €10.1 million as compensation for losses and moral damages

again for alleged anti-competitive commercial practices of Coca-Cola Hellenic Bottling Company S.A.

for the same period between 1994 and 2013. On 16 July 2021, the Athens Multimember Court of First

Instance issued its judgement number 1929/2021 (hereinafter the ‘Judgement’), which adjudicates

that Coca-Cola HBC Greece S.A.I.C. is obliged to pay to the plaintiff an amount of circa €0.9 million plus

interest as of 31 December 2003. Both Coca-Cola HBC Greece S.A.I.C and the plaintiff have appealed

against this decision to the court of appeals. Both appeals were heard on 19 January 2023. The decision

is pending to be issued. Management believes that any liability to the Group that may arise as a result

of these pending legal proceedings will not have a material adverse effect on the results of operations,

cash flows, or the financial position of the Group taken as a whole.

With respect to the investigation of the Greek Competition Commission initiated on 6 September

2016, regarding Coca-Cola HBC Greece S.A.I.C.’s operations in certain commercial practices in the

non-alcoholic beverages market, the Rapporteur of the Greek Competition Commission appointed

for this case issued her Statement of Objections on 5 July 2021, alleging that Coca-Cola HBC Greece

S.A.I.C. undertook a series of anti-competitive practices in the market of instant consumption for cola

and non-cola carbonated soft drinks, thereby excluding competitors and limiting their growth potential.

Coca-Cola HBC Greece S.A.I.C. has vigorously defended its commercial practices, in rebuttal of the

allegations set out in the Statement of Objections. The hearing of the case, before the plenary session

of the Greek Competition Commission, was concluded on 29 November 2021 and the supplementary

briefs of the parties were submitted on 16 December 2021. On 3 November 2022, the Hellenic

Competition Commission notified Coca-Cola HBC Greece S.A.I.C. of its ruling on the case, according

to which Coca-Cola HBC Greece S.A.I.C. allegedly abused its dominant position in the Greek immediate

consumption market segment for cola and non-cola carbonated soft drinks. The Hellenic Competition

Commission ruling imposed on Coca-Cola HBC Greece S.A.I.C. a fine of €10.3 million, as well as a

behavioural remedy in relation to beverage coolers valid until the end of 2024. Coca-Cola HBC Greece

S.A.I.C. paid the fine in May 2023. Coca-Cola HBC Greece S.A.I.C. strongly disagrees with this ruling and

has challenged it before the competent Court of Appeal. The hearing date of the appeal is set for 26

September 2024.

In 1992, our subsidiary NBC acquired a manufacturing facility in Nigeria from Vacunak, a Nigerian

company. In 1994, Vacunak filed a lawsuit against NBC, alleging that a representative of NBC had

orally agreed to rescind the sale agreement and instead enter into a lease agreement with Vacunak.

As part of its lawsuit, Vacunak sought compensation for rent and loss of business opportunities. NBC

discontinued all use of the facility in 1995. On 19 August 2013, NBC received the written judgement

of the Nigerian court of first instance issued on 28 June 2012 providing for damages of approximately

€7.8 million. The Appeal Court dismissed NBC’s appeal and Vacunak’s cross-appeal and affirmed the

judgement of the first instance court in 2023. Both NBC and Vacunak have filed an appeal against the

judgement before the Supreme Court. Based on advice from NBC’s outside legal counsel, we believe

that it is unlikely that NBC will suffer material financial losses from this case. We have consequently not

provided for any losses in relation to this case.

The tax filings of the Group and its subsidiaries are routinely subjected to audit by tax authorities

in most of the jurisdictions in which the Group conducts business. These audits may result in

assessments of additional taxes. The Group provides for additional tax in relation to the outcome of

such tax assessments, to the extent that a liability is probable and estimable.

The Group is also involved in various other legal proceedings. Management believes that any liability to

the Group that may arise as a result of these pending legal proceedings will not have a material adverse

effect on the results of operations, cash flows, or the financial position of the Group taken as a whole.

Considering the above, there have been no significant adverse changes in contingencies since 31

December 2022 (as described in our 2022 Integrated Annual Report available on Coca-Cola HBC’s

web site: www.coca-colahellenic.com).

31. Commitments

Capital commitments

As at 31 December 2023, the Group had capital commitments for property, plant and equipment

amounting to €203.4 million (2022: €210.5 million). Of this, €1.5 million are related to the Group’s share

of the commitments arising from joint ventures (2022: €0.5 million).

Capital commitments for 2023 include total future minimum lease payments under leases not

yet commenced to which the Group was committed as at 31 December 2023 of €10.0 million

(2022: €28.8 million).

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 264

Notes to the consolidated financial statements continued

32. Post balance sheet events

In late January 2024, the Nigerian Naira depreciated against the US Dollar by approximately 33%

compared with the December 2023 respective rate. The Group has assessed the impact of

the devaluation to its financial position as at 31 December 2023 and this is not material. We are

continuously monitoring the situation to ensure that timely actions are undertaken as planned to

minimise the adverse impact from the currency devaluation to the Group’s business in Nigeria.

In February 2024, Coca-Cola HBC AG’s wholly-owned subsidiary Coca-Cola HBC Finance B.V.

completed the issue of a €600 million Euro-denominated fixed rate bond maturing in February 2028

with a coupon rate of 3.375%. The new bond was issued under the Group’s €5.0 billion Euro medium-

term note programme and it is guaranteed by Coca-Cola HBC AG. At the same time, the Group

unwound the €525.0 million nominal amount swaptions, which had been designated as cash flow

hedges in connection with the interest rate risk of the new bond. As a result, effective February 2024,

the relevant accumulated valuation loss of €2.9 million recorded in other comprehensive income is

being reclassified to the income statement over the term of the swaptions, while the settlement will

take place in June and July 2024.

In early March 2024, the Egyptian Pound depreciated against the US Dollar by approximately

39% compared with the December 2023 respective rate. The Group has assessed the impact of

the devaluation to its financial position as at 31 December 2023 and this is not material. We are

continuously monitoring the situation to ensure that timely actions are undertaken as planned to

minimise the adverse impact from the currency devaluation to the Group’s business in Egypt.

On 13 March 2024, the Remuneration Committee granted performance share and deferred

MIP share awards of €25.3 million equivalent, under the performance share award and deferred

management incentive share plan, which have a three-year vesting period. The number of shares

granted is calculated by dividing the value of the grant with the closing share price as of the date

of the approval of the grant.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 265

Report on the audit of the consolidated financial statements

Report of the statutory auditor

to the General Meeting of

Coca-Cola HBC AG

Steinhausen (Zug)

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of Coca-Cola HBC AG and its subsidiaries

(the Group), which comprise the consolidated income statement and consolidated statement of

comprehensive income for the year ended 31 December 2023, the consolidated balance sheet as at

31 December 2023 and the consolidated statement of changes in equity and consolidated cash flow

statement for the year then ended, and notes to the consolidated financial statements, including

material accounting policy information.

In our opinion, the consolidated financial statements (pages 194 to 265) give a true and fair view

of the consolidated financial position of the Group as at 31 December 2023 and its consolidated

financial performance and its consolidated cash flows for the year then ended in accordance with

IFRSAccounting Standards as adopted by the European Union (EU) and comply with Swiss law.

Basis for opinion

We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and

Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are

further described in the ‘Auditor’s responsibilities for the audit of the consolidated financial statements’

section of our report. We are independent of the Group in accordance with the provisions of Swiss

law and the requirements of the Swiss audit profession, as well as the International Code of Ethics for

Professional Accountants (including International Independence Standards) issued by the International

Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

Our audit approach

Overview

Materiality Overall Group materiality: €51 million

Audit scope We conducted full scope audit procedures on the financial information of 17

subsidiaries in 15 countries spread across all of the Group’s reportable segments.

We also conducted procedures around specific account balances and transactions

and analytical review procedures for other subsidiaries and Group functions. Our

audit scope addressed 82% of consolidated net sales revenue, 80% of consolidated

profit before tax and 83% of consolidated total assets of the Group.

Key audit matters As key audit matters the following areas of focus have been identified:

• Goodwill and indefinite-lived intangible assets impairment assessment

• Uncertain tax positions

Materiality

The scope of our audit was influenced by our application of materiality. Our audit opinion aims to

provide reasonable assurance that the consolidated financial statements are free from material

misstatement. Misstatements may arise due to fraud or error. They are considered material if,

individually or in aggregate, they could reasonably be expected to influence the economic decisions

ofusers taken on the basis of the consolidated financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality,

including the overall Group materiality for the consolidated financial statements as a whole as set out

in the table below. These, together with qualitative considerations, helped us to determine the scope

of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of

misstatements, both individually and in aggregate, on the consolidated financial statements as a whole.

Overall Group materiality €51 million

Benchmark applied Adjusted profit before tax

Rationale for

the materiality

benchmarkapplied

We consider that the income statement remains the principal measure

used by the shareholders in assessing the underlying performance of

the Group. Therefore, an approach to materiality based on the profit

before tax has been applied. However, we have adjusted this benchmark

by items which, in our view, are considered unusual and infrequently

occurring in nature such as the impairment charges. Therefore, we

haveused adjusted profit before tax which is a generally accepted

auditing benchmark.

We agreed with the Audit and Risk Committee that we would report to them misstatements above

€2.5million identified during our audit as well as any misstatements below that amount which, in our

view, warranted reporting for qualitative reasons.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 266

Audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion

on the consolidated financial statements as a whole, taking into account the structure of the Group, the

accounting processes and controls, and the industry in which the Group operates.

The Group operates through its trading subsidiary undertakings in Nigeria, Egypt and 27 countries in

Europe, as set out in Note 1 ‘General information’ and Note 7 ‘Segmental analysis’ of the consolidated

financial statements. The processing of the accounting records for these subsidiary undertakings

is largely centralised in a shared services centre in Bulgaria, except for the subsidiary undertakings

in Armenia, Belarus, Egypt, Moldova, North Macedonia, Russia and Ukraine which process their

accounting records locally. The Group also operates centralised treasury functions in the Netherlands

and in Greece and a centralised procurement function for key raw materials in the Netherlands.