ASSIGNMENT#2

SAHER ASMAT ALI BHATTI (33823)

What is unethical in advertising?

Ethical advertising is also clear about its intentions, refraining from subliminal messages or hidden
agendas. Unethical advertising, on the other hand, will often distort or misrepresent its
product and well as seek secretive means of cajoling or influencing its target audience.

Coca-Cola
At Coca-Cola we turn ideas into opportunities; and strengths into success. We’re proud of our past and
focused on the future. We aim to stay ahead of the curve – anticipating success and challenges alike,
accelerating to meet them. We perform and grow, supported by a strong organisation and a shared
passion for innovation and change. This fuels the pursuit of our vision: to create millions of moments of
happiness and possibilities … every day.

OUR YEAR
Our Group results reflect strong earnings performances in New Zealand & Fiji, Indonesia & Papua New
Guinea, and Alcohol & Coffee. Despite improved trajectory in Australian Beverages in the second half, it
was not sufficient to offset the challenges experienced at the beginning of the year.

WHERE WE OPERATE
When you look across the six countries in which we operate, you see a fascinating numbers game at
play. Around 13,000 employees ensure that up to 270 million potential consumers are able to get their
hands on one of the 130+ brands we distribute and they love, via one of our 950,000+ customers, on any
day. With 46 warehouse facilities and 36 production facilities, we’re able to create a range of beverages
that is second to none...that’s no mean feat!

WE ARE A CONSUMER-CENTRIC
COMPANY AND AIM TO PROVIDE THE
PRODUCT CHOICE THAT CONSUMERS
WANT
At 31 December 2017, The Coca-Cola Company held 30.8 per cent of the shares in Coca-Cola Amatil and
was represented by two Non-Executive Directors on the Board, Martin Jansen and Krishnakumar
Thirumalai, who provide insight and counsel on all aspects of our business. During the year we also
expanded relationships with partners including Monster Energy, Beam Suntory, and Molson Coors
International, with new products and campaigns in Australia and New Zealand. We look forward to
building on these new and longstanding relationships in 2018, to bring new tastes and old favourites to
customers and consumers across the region.

Capability
The success of any organisation is determined by the capability of its people. We have a talented and
committed workforce and a leadership group – led by Alison – that is structured to deliver against our
future growth ambitions in the most efficient and effective way. In support of this growth objective, in
2017, we invested significantly in the capability of our people in Indonesia. This has involved building a
capability development framework and training academies that will be implemented across all of Coca-
Cola Amatil’s markets. Work has begun on taking this model to PNG. We are also developing the
capability of our women in all businesses through mentoring and targets for gender diversity. At Coca-
Cola Amatil women hold 30 per cent of senior executive positions and we have active programs to help
grow this representation including Women Leading @ Amatil, now in its third year. Progress has been
good but we have a lot more to do, including getting women into line management and sales roles.

Sustainability
In 2017 we maintained our emphasis on delivering real outcomes in wellbeing, the environment, and in
meeting our responsibilities to local communities. We are proud of what we have achieved and the
contribution we are making in areas as diverse as tree-planting in Indonesia, solar energy in Fiji and
product reformulation in Australia. These actions demonstrate our willingness to be an active and
engaged community partner, and to shape our future through proactive collaboration with customers,
consumers and governments in each of our markets. The year also saw the introduction of the Container
Deposit Scheme (CDS) in New South Wales, with other schemes planned in Queensland, the ACT and
Western Australia. We engaged with government and others in the development phase of the New
South Wales Scheme, with a view to ensuring that the CDS operated efficiently and with the smallest
possible financial impact on consumers and manufacturers. Hand in hand with The Coca-Cola Company,
we worked closely with government and consumers to address community concerns in relation to
consumer wellbeing, particularly in Australia and New Zealand. We are a consumer-centric Company
and aim to provide the product choice that consumers want. We recognise and welcome the
opportunity to play our part in reducing obesity and related ailments. That means more low- and no-
sugar products, smaller pack sizes, and new products in different categories.

Board Update
At the 2017 Annual General Meeting we farewelled David Gonski, who retired from Coca-Cola Amatil
having served as Chairman for sixteen years. David had been an outstanding leader of the Board – his
intelligence, commercial acumen, outstanding judgement and ability to work with everyone were a
great asset for the Company and shareholders.

Outlook
Going forward we will maintain our focus on these priorities of business performance, partnerships,
capability and sustainability, accelerating our focus on stabilising Australian Beverages and growing our
other businesses. The three pillars of our Group Strategy – Perform, Grow and Strong Organisation –
provide us with a strong framework to achieve this while allowing flexibility to adapt to local market
conditions and opportunities. We know that while our markets continue to evolve, our mediumand
long-term plans remain on track. In delivering against these priorities, we recognise the efforts of all
those at Coca-Cola Amatil who worked hard to bring them to fruition. The capability, optimism and
agility of all our team is what will ensure we deliver on our ambition in 2018. On behalf of the Board, I
take this opportunity to thank all of the team at Amatil for their valuable contribution during the year.
Our greatest asset as a Company is the tireless energy, enthusiasm and dedication shown by all 13,000
members of our team.

BOARD SKILLS MATRIX

LEAD
Marketing 9

Innovation 7
Media 7

Regulatory 9

PARTNER
Joint Ventures 9

Brand Partners 8

EXECUTE
Digital Technology 8

Productivity 9

Improvements Financial 9

Risk 9

Governance 9

Strategy Development 9

Human Resources 9

Work Health Safety 8

International 9

The Skills Matrix (as shown to the right) sets out the key skills and experience that the Board is looking
to have in its membership, together with the details of those skills that each Director brings to the
Board. Each year, the Skills Matrix is reviewed and amended as appropriate, and each Director then
undertakes a self-assessment against that Skills Matrix to identify their skill level against each skill. These
self-assessments are consolidated and reviewed by the Board, with the Board determining its position
on each Directors’ self-assessment, and identifying any skill gaps and/or opportunities to be targeted in
future appointments to the Board and professional development initiatives for Directors.

Performance Evaluation Process

The performance evaluation process for the Board, Board Committees, individual Directors and KMP
Senior Executives is set out in the Corporate Governance Statement. The remuneration policies and
practices for Non-Executive Directors differ from those that apply to the Group Managing Director and
other KMP Senior Executives, given the different roles and responsibilities of Non-Executive Directors.

Communication with Shareholders

 The rights of Coca-Cola Amatil’s shareholders are detailed in Coca-Cola Amatil’s Constitution. Coca-Cola
Amatil also has a Disclosure and Communication Policy, which requires that shareholders be informed
about strategic objectives and major developments. To allow shareholders to effectively exercise these
rights, the Board is committed to ensuring communication to shareholders is of high quality, the
information is relevant and useful, and it is communicated in a timely manner. Coca-Cola Amatil is
committed to keeping shareholders informed and improving accessibility to shareholders through ASX
announcements, Company publications such as the Annual Report, webcasting analyst and media
briefings, the Annual General Meeting, the website (www.ccamatil.com) and the Investor Relations
function.

Relationship With The Coca-Cola

Company And Other Brand Partners
Coca-Cola Amatil’s relationships with its partners are key to its success and form a fundamental part of
the core strategy. Coca-Cola Amatil’s beverage business, of which The Coca-Cola Company branded
products form the majority, relies on strong plans that are aligned for growth. Coca-Cola Amatil
continues to drive further improvement in alignment with The Coca-Cola Company, and joint plans are
in place with each of the alcohol and other brand partners to profitably drive volume. Our relationship
with The Coca-Cola Company is governed in our various markets by Bottler’s Agreements which set out
the respective rights and responsibilities of Coca-Cola Amatil and The Coca-Cola Company. Termination
of our agreements with The Coca-Cola Company or our other brand partners, or unfavourable renewal
terms, could adversely affect Coca-Cola Amatil’s profitability. Our agreements with The Coca-Cola
Company are typically 10 years in duration and have consistently been renewed. Our Bottler’s
Agreements provide us exclusive rights to produce, package, sell, and distribute the relevant
trademarked products of The Coca-Cola Company in a territory. Our agreements contain obligations in
relation to manufacturing and marketing requirements of The Coca-Cola Company. The Coca-Cola
Company typically takes overall responsibility for the consumer marketing of its products and supplies
proprietary concentrates and beverage bases to Coca-Cola Amatil.

BASIS FOR OPINION

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
CORPORATE OFFICE
Jane Bowd
Group Company Secretary

David Akers
Head of Investor Relations

Liz McNamara
Group Director, Public Affairs, Communications and Sustainability

REGISTERED OFFICE
Coca-Cola Amatil Limited

Coca-Cola Place

L14, 40 Mount Street North Sydney NSW 2060

Ph: +61 2 9259 6222

AUDITOR
Ernst & Young (Australia)

Ernst & Young Centre

200 George Street

Sydney NSW 2000