Coca-Cola & Vitamin water

1. Coca-Cola & Vitaminwater

2. Agenda • Financial & Accounting Highlights • Valuation • Marketing Analysis • Recommendations

3. Recommendations Continue Innovative Promotions Increase Frequency of Consumption Broaden Portfolio to Functional Foods Expand Globally (Brazil, Thailand and Vietnam)

4. Agenda • Financial & Accounting Highlights • Valuation • Marketing Analysis • Recommendations

5. Accounting Highlights ? • Coca-Cola does not break out results for Vitaminwater • FIFO or average cost to value inventories • Does not disclose R&D Vitamin

6. Accounting Highlights • $9B in cash • Advertising 10% of revenues • Dramatic Increases in Treasury Stock • $2B Vitaminwater Goodwill (increase from $1.4B prior to acquisition) Vitamin

7. Coke’s Stock Price - LTM Current Price: (12/11/2009): $59.11 52 Week High/Low: ($37.44/$59.40) Average Daily Trading Volume: 10.2 M Shares Vitamin

8. Agenda • Financial & Accounting Highlights • Valuation • Marketing Analysis • Recommendations

9. Free Cash Flow - Assumptions Revenue Growth Regression (KO v. Nominal GDP) Key Cash Flow Drivers: Vitamin

10. Free Cash Flow - Assumptions Key Cash Flow Drivers: Revenue Growth Regression (KO v. Nominal GDP) EBIT Margin: 27.1% across all Cases Vitamin Change in Working Cap: held constant in all cases Capital Expenditures Depreciation and Amortization

11. Free Cash Flow - Baseline Projections Vitamin

12. Valuation - Baseline Vitamin EV/EBITDA Multiple: 13.0X, 15.0X, 17.0X Stock Valuation Range: $55.24 - $74.84 Projected Stock Valuation: $64.71 / share WACC 6.96%

13. Valuation - Baseline Vitamin

14. Valuation – Bull and Bear • Bull Case • Bear Case Stock Valuation Range: $61.57 - $75.44 Projected Stock Valuation: $68.50 / share EV/EBITDA Multiple: 13.0X, 15.0X, 17.0X WACC 6.96% Vitamin Stock Valuation Range: $54.77 - $67.02 EV/EBITDA Multiple: 13.0X, 15.0X, 17.0X Projected Stock Valuation: $60.89 / share WACC 6.96%

15. Agenda • Financial & Accounting Highlights • Valuation • Marketing Analysis • Recommendations

16. Segment

17. Competitor Analysis • New Products • Healthier Attributes • Higher Quantity of Healthy Attributes New Entrants • Private Label • Homemade juices • Infused water Primary Industry Competitors Suppliers Customers Substitutes Secondary and Tertiary Competitors

18. Competitors Sobe Life Water Propel Function Industry Primary Snapple Gatorade Iced Tea Flavored Water & Sparkling Water SubstitutesPrimary Soda Water & Sparkling Water Sobe, Fuze, Snapple, etc Substitutes Secondary Tea & Coffee Milk Powdered Drinks & Mixers

19. Competitor Analysis Price Lower Higher Flavor Variety More Less

20. Competitor Analysis Brand Signals Health Benefits Does Not Does Overall Nutritional Value Higher Lower Tastes Less Like Water Less More

21. Product Positioning • Positioned as a drink that both hydrates consumers while providing essential nutrients they are likely missing

22. Customer Needs Hierarchy • Better Healthier Person • Healthy • Energized • Refreshed • Energy Alternative Beverage • Hydration • Nourishment • Taste • Vitamin Content Nutrients • Water Sugar

23. Agenda • Financial & Accounting Highlights • Valuation • Marketing Analysis • Recommendations

24. Continue Innovative Promotions

25. ContinueInnovative Promotions • Lebronvs. Kobe • Facebookflavorcreator • New Moon collaboration Other Media Print

26. Increase Frequency of Consumption

27. Increase Frequency of Consumption • 33% of functional beverage consumers consume on daily basis • Increase availability of larger package sizes • Introduce new package sizes

28. Increase Frequency of Consumption • Capture Consumers From Soda Category

29. Broaden Portfolio to Functional Foods

30. Health & WellnessAwareness 65% of consumers want eat healthy Functional Water Fills The Gap Obesity On The Rise

31. Consumer Buying Behavior Changed • Sales of functional foods in supermarket grew 18% over 2004 to 2009

32. Functional Foods Refuel mixed berry snacks ************************************************************************************************************************************************************************** Vitamin

33. Expand Globally → Brazil, Thailand and Vietnam

34. Global Bottled Water Market

35. Global Market Share Global Water Market Share

36. Global Market Value

37. Global Projected Volume 2008-2013

38. Global Recommendations Brazil Thailand & Vietnam

39. Questions?

40. Appendix

41. Competitor Analysis Price & Variety • Averages among all competitors Nutritional Value • Each competitor was scored by various nutritional components • Weighted average score was calculated for each competitor to identify overall ranking

42. Taste Test Results Scale • 1 Tastes Least Like Water • 5 Tastes Most Like Water Vitaminwater Statistics • Sample Average 2.94 • Sample Std Dev 1.56 • Sample Size 33 • α = 0.05 • Confidence interval 2.39 to 3.49 • 95% confident that we are in the top 4

43. Signaling Health Benefits Results Scale • 1 Does Not Signal Health Benefits • 5 Signals Health Benefits Vitaminwater Statistics • Sample Average 3.97 • Sample Std Dev 1.22 • Sample Size 35 • α = 0.05 • Confidence interval 3.55 to 4.39 • 95% confident that VW is the leading brand signaling health benefits

44. Asia-Pacific Functional Drink Market Value

45. Asia Pacific Market Segmentation

46. Asia-Pacific Functional Drink Market Share

47. Asia-Pacific Functional Forecast