COCA COLA

UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN FACULTAD DE CONTADURÍA PÚBLICA Y ADMINISTRACIÓN FINANCES I

Project COCA COLA

Teacher: Alberto Nava Group: 4xi Complete name and ID Cid Vergara, Edwin. 1648752 Fidalgo Ponce, Grecia Gisela. 1552214 Gómez Vélez, Alexia Karina. 1549372 Medrano Ortiz, Sonia Giselle. 1649032 Mota Garza, Leonel Alan. 1555877

Monterrey, N. L. February 142014

INDEX

INTRODUCTION ..................................................................................................... 3 THE COMPANY ...................................................................................................... 4 COMPANY BACKGROUND.................................................................................... 5 OVERVIEW OF THE ANNUAL REPORT.............................................................. 13 BUSINESS ENVIRONMENT. ................................................................................ 18 THE AUDITORS.................................................................................................... 20 INDUSTRY BACKGROUND ................................................................................. 22 OPERATING ACTIVITIES ..................................................................................... 24 ANALYSIS OF OPERATING ACTIVITIES ............................................................ 35 INVESTING ACTIVITIES....................................................................................... 42 ANALYSIS OF INVESTIG ACTIVITIES ................................................................. 49 EQUITY FINANCING. ........................................................................................... 64 ANALYSIS OF FINANCING ACTIVITIES. ............................................................. 70 COMPARISON TO INDUSTRY BENCHMARKS .................................................. 78 CONCLUSIONS .................................................................................................... 81 BIBLIOGRAPHY.................................................................................................... 86

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INTRODUCTION This is a project where you‘re going to see Coca-Cola in many ways, talking about finance, you will have an opportunity to meet this company in different positions. As you read this project, you will see what it‘s learned in finance, but in real life event, applying the knowledge it‘s gotten, to analyze all the financial information we got and how it is analyzed. You will see here how well they do with those with whom they do business and their other stakeholders, we took the support from the reports they publish annually regarding their performance in various aspects of their business, but focusing in the financial performance. These reports reflect, among other things, their performance and accomplishments in the areas of product safety, quality and integrity, marketing and innovation, community support, workplace rights and protecting the environment, that just were useful in one or other points, but as we have said, we focused in the financial area. We review detailed financial information and learn about the scale of their organization, their operating groups, the scope of their business and relationships with their bottling partners. Through the read, you will find the healthy financial issues of Coca-cola Co. has benefits not just with the income and the success, they have many other way to make people keep buy his products, by participating in events in most of the times globally, like the world cup of soccer, event in which they are participating. The Environmental care of Coca-cola co. and his bottling partners is remarkable, nowadays they are transform his bottles in to In any case, financially talking, the health of the company is well maintained, such as their products all over the world, and we can learn about this project as a motivator in the future to be part of the graphics that we just research, about Financial highlights and get to understand them well.

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THE COMPANY Sector: Food and Drinks Industry: Beverages Industry Coca Cola Company is related with beverage industry, I think beverage industry has been growing since 2000, but not just in the soft-drinks area, the main industry has been growing. Nowadays Coca Cola is leading the beverage industry with more than 500 beverage brands, including four of the world's top-five sparkling brands.Besides, every second of the day, people consume nearly 8 thousand drinks brands of the Coca-cola Company. We are more interested in knowing about Coca-cola Company, because is not just a company dedicated to elaborate carbonated and flavored drinks, They concern about the environment and the ecosystem, and have create already an ‗‘ecobottle‘‘ which is designed and made off recycled bottles. With the Coca Cola Civic Action Network (CAN) they provide information to the Coca-Cola family about national, state and local issues that could affect the industry, as well as each of us individually. In any case, who do not know about Coca Cola Company, Or any drink related with... Coca cola and their products are around the whole world. If you not know about it, i think you might be a little disconnected to the world. They even have a World cup 2014 campaign already. That‘s another reason to be interested about. Mexico have the World record of consumers of Coca cola with 675 bottles Annual per capita, next to Mexico is Malta with 606, Then Chile with 445, and finally United States with 394 Annually consumed.

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COMPANY BACKGROUND The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892. The Coca-Cola Company, incorporated on September 5, 1919, is a beverage company. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-todrink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling beverage brands, which includes Coca-Cola, Diet Coke, Fanta and Sprite. The Company‘s segments include Eurasia and Africa, Europe, Latin America, North America, Pacific, Bottling Investments and Corporate. On December 30, 2011, the Company acquired Great Plains Coca-Cola Bottling Company (Great Plains) in the United States

Founded: 1892 Founders: Asa Griggs Candler Initial public offering: 1919 Headquarters: 384 Northyards Blvd NW #690, Atlanta, GA 30313, United States. Independent Audit Firm: Ernst & Young LLP Webpage: http://www.coca-colacompany.com/

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Company size.

Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy its beverages at a rate of more than 1.8 billion servings a day. With an enduring commitment to building sustainable communities, the Company is focused on initiatives that reduce its environmental footprint, support active, healthy living, create a safe, inclusive work environment, and enhance the economic development of the communities where it operates. Together with its bottling partners, it ranks among the world's top 10 private employers with more than 700,000 system associates.

AnnualSummary Data (Millions) Year

Sales

Net Income

EPS

12/2009

30,990.00

7,605.00

1.46

12/2010

35,119.00

11,787.00

2.53

12/2011

46,542.00

8,584.00

1.84

12/2012

48,017.00

9,019.00

1.97

12/2013

46,854.00

8,584.00

1.90

GrowthRates

10.89

3.07

6.81

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Coca-Cola Board of Directors.

Muhtar Kent Muhtar Kent is Chairman of the Board and Chief Executive Officer of The CocaCola Company, a position he has held since April 2009. Previously he was President and Chief Executive Officer and earlier, President and Chief Operating Officer. Mr. Kent joined The Coca-Cola Company in Atlanta in 1978, holding a variety of marketing and operations leadership positions over the course of his career. In 1985, he became General Manager of Coca-Cola Turkey and Central Asia. Beginning in 1989, he served as President of the Company's East Central Europe Division and Senior Vice President of Coca-Cola International, with responsibility for 23 countries.

Herbert A.Allen President and Chief Executive Officer Herbert A. Allen has been director of The Coca-Cola Company since 1982. Mr. Allen is President, Chief Executive Officer and a Director of Allen & Company Incorporated, a privately held investment firm, and has held these positions for more than the past five years.

Ronald W. Allen Ronald W. Allen has been a Director of The Coca-cola Company since 1991. In November 2012, Mr. Allen was appointed Chairman of the Board of Aaron‘s, Inc., where he has served as a Director since 1997. Mr. Allen as served as President and Chief Executive Officer of Aaron‘s, Inc. since February 2012 and as interim President and Chief Executive Officer of Aaron‘s, Inc. from November 2011 until February 2012. Mr. Allen retired as the Chairman of the Board, President and Chief Executive Officer of Delta Air Lines, Inc., one of the world‘s largest global airlines, in July 1997. From July 1997 through July 2005, Mr. Allen was a consultant to and Advisory Director of Delta. He previously served as a Director of Interstate Hotels & Resorts, Inc. from 2006 to 2010.

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Ana Botín Ms. Botín has been a director of The Coca-Cola Company since July 18, 2013. Ms. Botín is Chief Executive Officer and a Director of Santander UK plc, a leading financial services provider in the United Kingdom and subsidiary of Banco Santander, S.A., and has held these positions since December 2010. Ms. Botín served as Executive Chairman of Banco Español de Crédito, S.A., also a subsidiary of Banco Santander, S.A., from 2002 to 2010. She started her 32-year career in the banking industry at JP Morgan in New York in 1981 and in 1988 joined Banco Santander, S.A., a global, multinational bank, where she established and led its international corporate banking business in Latin America in the 1990‘s. She previously served as a director of Assicurazion iGeneraliS.p.A., a global insurance company based in Italy, from 2004 to 2011. She is a Director of Banco Santander, S.A.

Howard G. Buffet Howard G. Buffett has been a Director of The Coca-Cola Company since 2010. Mr. Buffett is President of Buffett Farms, a commercial farming operation, and Chairman and Chief Executive Officer of the Howard G. Buffett Foundation, a charitable foundation that supports initiatives focused on food and water security, conservation and conflict management, and has held these positions for more than the past five years. He is a Director of Berkshire Hathaway Inc. and Lindsay Corporation.

Richard M. Daley Richard M. Daley has been a Director of The Coca-Cola Company since 2011. Mr. Daley was the Mayor of Chicago from 1989 to 2011. Mr. Daley is the Executive Chairman of Tur Partners LLC, an investment and advisory firm focusing on sustainable solutions within the urban environment, and has held this position since May 2011. He is an Of Counsel at Katten Muchin Rosenman LLP, a fullservice law firm with more than 600 attorneys in locations across the United States and an affiliate in London and Shanghai, and has held this position since June 2011. In October 2011, he was appointed a senior advisor to JPMorgan Chase & Co., where he chairs the ―Global Cities Initiative,‖ a joint project of JPMorgan Chase & Co. and the Brookings Institution to help cities identify and leverage their greatest economic development resources. Mr. Daley also has been a distinguished senior fellow at the University of Chicago Harris School of Public 8

Policy since May 2011. He is also a Director of Diamond Resorts International, Inc. Barry Diller Barry Diller has been a Director of The Coca Cola Company since 2002. Mr. Diller is Chairman of the Board and Senior Executive of IAC/InterActiveCorp, a leading media and Internet company. Mr. Diller held the positions of Chairman of the Board and Chief Executive Officer of IAC/InterActiveCorp and its predecessors since August 1995 and ceased serving as Chief Executive Officer in December 2010. Mr. Diller is also Chairman of the Board and Senior Executive of Expedia, Inc., an online travel company. Mr. Diller has served as Special Advisor to Trip Advisor, Inc., an online travel company, since April 2013 and served as its Chairman of the Board and Senior Executive from December 2011, when it was spun off from Expedia, Inc., until December 2012, and was a member of its Board until April 2013. Mr. Diller served as the non-executive Chairman of the Board of Ticketmaster Entertainment, Inc. from 2008 to 2010, when it merged with Live Nation, Inc. to form Live Nation Entertainment, Inc. Mr. Diller served as the nonexecutive Chairman of the Board of Live Nation Entertainment, Inc. from January 2010 to October 2010 and was a member of its Board until January 2011. Mr. Diller also is a Director of Graham Holdings Company (formerly The Washington Post Company). Helen D. Gayle Dr. Gayle has been a director of The Coca-Cola Company since April 24, 2013. Dr. Gayle has been President and Chief Executive Officer of CARE USA, a leading international humanitarian organization, since 2006. From 2001 to 2006, she served as senior advisor in the Global Health Program at the Bill & Melinda Gates Foundation. Dr. Gayle started her 20-year career in public health at the U.S. Centers for Disease Control and Prevention (―CDC‖) in 1984 where she held various positions, ultimately becoming the director of the CDC‘s National Center for HIV, STD and TB Prevention in 1995.

Evan G. Greenberg Evan G. Greenberg has been a Director of The Coca-Cola Company since 2011. Mr. Greenberg is the Chairman and Chief Executive Officer of ACE Limited, the parent company of the ACE Group of Companies, a global insurance and reinsurance organization. He served as President and Chief Operating Officer of ACE Limited from June 2003 to May 2004, when he was elected to the position of President and Chief Executive Officer. Mr. Greenberg has served on the Board of ACE Limited since 2002 and was elected as Chairman of the Board of Directors in May 2007. Prior to joining the ACE Group in 2001, Mr. Greenberg held a number of 9

senior management positions at American International Group, Inc., most recently serving as President and Chief Operating Officer from 1997 until 2000. Alexis M. Herman Alexis Herman has been a Director of The Coca Cola Company since 2007. Ms. Herman is the Chair and Chief Executive Officer of New Ventures LLC, a corporate consulting company, and has held these positions since 2001. She serves as Chair of the Business Advisory Board of Sodexo, Inc., an integrated food and facilities management services company, and as Chair of Toyota Motor Corporation's North American Diversity Advisory Board. As chair of the Company's Human Resources Task Force from 2001 to 2006, Ms. Herman worked with the Company to identify ways to improve its human resources policies and practices following the November 2000 settlement of an employment lawsuit. From 1997 to 2001, she served as U.S. Secretary of Labor. She is also a Director of Cummins Inc., Entergy Corporation and MGM Resorts International.

Robert A. Kotick Robert A. Kotick has been a Director of The Coca-Cola Company since 2012. Mr. Kotick is President, Chief Executive Officer and a Director of Activision Blizzard, Inc., an interactive entertainment software company, and has held these positions since 2008. Mr. Kotick served as Chairman and Chief Executive Officer of the predecessor to Activision Blizzard, Inc. from 1991 to 2008.

Maria Elena Lagomasino Maria Elena Lagomasino has been a Director of The Coca-Cola Company since 2008. Ms. Lagomasino is the Chief Executive Officer and Managing Partner of WE Family Offices, a multi-family office serving global high net worth families, and has held these positions since March 2013. Ms. Lagomasino served as Chief Executive Officer of GenSpring Family Offices, LLC, an affiliate of SunTrust Banks, Inc., from November 2005 through October 2012. From September 2001 to March 2005, Ms. Lagomasino was Chairman and Chief Executive Officer of JPMorgan Private Bank, a division of JPMorgan Chase & Co., a global financial services firm. Prior to assuming this position, she was Managing Director of The Chase Manhattan Bank in charge of its Global Private Banking Group. Ms. Lagomasino had been with Chase Manhattan since 1983 in various positions in private banking. She is a Director of Avon Products, Inc. and served as a Director of the Company from April 2003 to April 2006.

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Sam Nunn Sam Nunn has been a Director of The Coca Cola Company since 1997. Mr. Nunn is Co-Chairman and Chief Executive Officer of the Nuclear Threat Initiative, a position he has held since 2001. The Nuclear Threat Initiative is a nonprofit organization working to reduce the global threats from nuclear, biological and chemical weapons. He has served as the Chairman of the Board of the Center for Strategic & International Studies since 1999. He served as a member of the United States Senate from 1972 through 1996. He previously served as a Director of Chevron Corporation from 1997 to 2011, Dell Inc. from 1999 to 2011, General Electric Company from 1997 to April 2013 and Hess Corporation from 2012 to May 2013.

James D. Robinson III James D. Robinson III has been a Director of The Coca Cola Company since 1975. Mr. Robinson is Co-Founder and General Partner of RRE Ventures, an early stage technology-focused venture capital firm, and has held this position since 1994. He is also President of J.D. Robinson, Inc., a strategic advisory firm. He served as non-executive Chairman of the Board of Bristol-Myers Squibb Company from 2005 to 2008 and as Chairman and Chief Executive Officer of American Express Company from 1977 to 1993. He previously served as a Director of Novell, Inc. from 2001 to 2009.

Peter V. Ueberroth Peter V. Ueberroth has been a Director of The Coca Cola Company since 1986. Mr. Ueberroth is an investor and Chairman of the Contrarian Group, Inc., a business management company, and has held this position since 1989. He serves as Chairman of the Board of Aircastle Limited and non-executive Co-Chairman of Pebble Beach Company. He previously served as a Director of Adecco SA from 2004 to 2008 and Ambassadors International, Inc. from 2005 to 2008.

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Coca-Cola Majority-owned Subsidiaries Holder

Shares

Berkshire Hathaway Inc

% Out 400,000,000 9.10

Vanguard Group Inc.

218,661,801 4.98

State Street Corporation

176,901,346 4.02

FMR, LLC

124,359,813 2.83

BlackRock Institutional Trust Company, N.A. Northern Trust Corporation

98,853,867

2.25

70,816,142

1.61

Bank of New York Mellon Corporation Yacktman Asset Management LP BlackRock fund advisors

54,975,213

1.25

43,243,371

0.98

42,427,078

0.97

Grantham Mayo Van Otterloo&Company

38,425,687

0.87

Value*

Reported

16,524,00,000 Dec 31 2013 9,032,918,999 Dec 31 2013 7,307,794,603 Dec 31 2013 5,137,303,875 Dec 31 2013 4,083,653,245 Dec 31 2013 2,925,414,826 Dec 31 2013 2,271,026,049 Dec 31 2013 1,786,383,656 Dec 31 2013 1,752,662,592 Dec 31 2013 1,587,365,129 Dec 31 2013

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OVERVIEW OF THE ANNUAL REPORT 1.- Financial Highlights: Financial information: 10 years. Growth Profitability and Financial Ratios for Coca-Cola Co Financials 2004-12 2005-12 2006-12 2007-12 2008-12 2009-12 2010-12 2011-12 2012-12 2013-12 TTM Revenue USD Mil 21,962 23,104 24,088 28,857 31,944 30,990 35,119 46,542 48,017 46,854 Gross Margin % 65.2 64.5 66.1 63.9 64.4 64.2 63.9 60.9 60.3 60.7 Operating Income USD Mil 5,698 6,085 6,308 7,252 8,446 8,231 8,449 10,154 10,779 10,228 Operating Margin % 25.9 26.3 26.2 25.1 26.4 26.6 24.1 21.8 22.4 21.8 Net Income USD Mil 4,847 4,872 5,080 5,981 5,807 6,824 11,809 8,572 9,019 8,584 Earnings Per Share USD 1 1.02 1.08 1.29 1.25 1.47 2.53 1.85 1.97 1.9 Dividends USD 0.5 0.56 0.62 0.68 0.76 0.82 0.88 0.94 1.02 1.12 Payout Ratio % 50 55 57.4 53 61.2 56 34.8 50.9 51.8 58.8 Shares Mil 4,858 4,786 4,700 4,662 4,672 4,658 4,666 4,646 4,584 4,509 Book Value Per Share USD 3.29 3.44 3.61 4.7 4.42 5.38 6.76 6.99 7.34 7.54 Operating Cash Flow USD Mil 5,968 6,423 5,957 7,150 7,571 8,186 9,532 9,474 10,645 10,542 Cap Spending USD Mil -755 -899 -1,407 -1,648 -1,968 -1,993 -2,215 -2,920 -2,780 -2,550 Free Cash Flow USD Mil 5,213 5,524 4,550 5,502 5,603 6,193 7,317 6,554 7,865 7,992 Free Cash Flow Per Share USD 1.07 1.15 0.97 1.18 1.2 1.33 1.57 1.41 1.72 1.77 Working Capital USD Mil 1,123 414 -449 -1,120 -812 3,830 3,071 1,214 2,507 3,493

Company and products As we know The Coca-Cola Company is the world's largest beverage company, which offers consumers 500 brands of soft drinks without gas.

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46,395 60.8 10,196 22 8,452 1.88 1.15 60.9 4,493 7.43 11,130 -2,501 8,629

Along with Coca-Cola, recognized as the world's most valuable brand, the product portfolio of the company includes 12 other brands worth several billion dollars, including Coca-Coca Light, Fanta, Sprite, Coca -Cola Zero, vitamin water, Powerade and Minute Maid. Globally, Coke is the leading supplier of soft drinks, juices and juice-based drinks as well as tea and coffee ready to drink. Through more beverage distribution system in the world, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1,600 billion servings a day. In its ongoing commitment to building sustainable communities, Coca Cola focuses on a series of initiatives to protect the environment, conserve resources and enhance the economic development of the communities where it operates.

Management Discussion and Analysis: Coca cola has being the #1 of nonalcoholic beverage companies, as well as one of the world's most recognizable brands. Coca cola has many competitors throughout the world, the majoritarian these are small, true coca cola competitors globally are: DPS = Dr Pepper Snapple Group, Inc. NSRGY = Nestl PEP = Pepsico, Inc. Industry = Beverages - SoftDrinks

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Coca-Cola Co., Consolidated Income Statement USD $ in millions 12 months ended Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Net operating revenues 46,854 48,017 46,542 35,119 30,990 Cost of goods sold -18,421 -19,053 -18,216 -12,693 -11,088 Gross profit 28,433 28,964 28,326 22,426 19,902 Selling, general and administrative expenses -17,310 -17,738 -17,440 -13,158 -11,358 Other operating charges -895 -447 -732 -819 -313 Operating income 10,228 10,779 10,154 8,449 8,231 Interest income 534 471 483 317 249 Interest expense -463 -397 -417 -733 -355 Equity income, net 602 819 690 1,025 781 Other income (loss), net 576 137 529 5,185 40 Income before income taxes 11,477 11,809 11,439 14,243 8,946 Income taxes -2,851 -2,723 -2,805 -2,384 -2,040 Consolidated net income 8,626 9,086 8,634 11,859 6,906 Net income attributable to noncontrolling interests -42 -67 -62 -50 -82 Net income attributable to shareowners of The Coca-Cola Company 8,584 9,019 8,572 11,809 6,824



Coca-Cola Co.'s net operating revenues increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level.



Coca-Cola Co.'s operating income increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level.



Coca-Cola Co.'s income before income taxes increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level.



Coca-Cola Co.'s consolidated net income increased from 2011 to 2012 but then declined significantly from 2012 to 2013.

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

Coca-Cola Co.'s net income attributable to shareowners of The Coca-Cola Company increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level.

Coca-Cola Co., Consolidated Statement of Financial Position, Liabilities and Stockholders' Equity USD $ in millions

Accrued marketing Other accrued expenses Trade accounts payable Accrued compensation Sales, payroll and other taxes Container deposits Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes Liabilities held for sale Current liabilities Long-term debt, excluding current maturities Other liabilities Deferred income taxes Noncurrent liabilities Total liabilities Common stock, $0.25 par value Capital surplus Reinvested earnings Accumulated other comprehensive loss Treasury stock, at cost Equity attributable to shareowners of The CocaCola Company Equity attributable to noncontrolling interests Total equity Total liabilities and equity

     

Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 2,407 2,231 2,286 2,250 1,912 3,515 2,711 2,749 2,920 1,883 1,933 1,969 2,172 1,887 1,410 933 1,045 1,048 1,068 720 450 389 405 401 375 339 335 349 333 357 9,577 8,680 9,009 8,859 6,657 16,901 16,297 12,871 8,100 6,749 1,024 1,577 2,041 1,276 51 309 471 362 273 264 – 796 – – – 27,811 27,821 24,283 18,508 13,721 19,154 14,736 13,656 14,041 5,059 3,498 5,468 5,420 4,794 2,965 6,152 4,981 4,694 4,261 1,580 28,804 25,185 23,770 23,096 9,604 56,615 53,006 48,053 41,604 23,325 1,760 1,760 880 880 880 12,276 11,379 11,212 10,057 8,537 61,660 58,045 53,550 49,278 41,537 -3,432 -3,385 -2,703 -1,450 -757 -39,091 -35,009 -31,304 -27,762 -25,398 33,173 267 33,440 90,055

32,790 378 33,168 86,174

31,635 286 31,921 79,974

31,003 314 31,317 72,921

24,799 547 25,346 48,671

Coca-Cola Co.'s trade accounts payable declined from 2011 to 2012 and from 2012 to 2013. Coca-Cola Co.'s current liabilities increased from 2011 to 2012 but then slightly declined from 2012 to 2013. Coca-Cola Co.'s noncurrent liabilities increased from 2011 to 2012 and from 2012 to 2013. Coca-Cola Co.'s total liabilities increased from 2011 to 2012 and from 2012 to 2013. Coca-Cola Co.'s equity attributable to shareowners of The Coca-Cola Company increased from 2011 to 2012 and from 2012 to 2013. Coca-Cola Co.'s total equity increased from 2011 to 2012 and from 2012 to 2013.

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Coca-Cola Co., Consolidated Statement of Cash Flows USD $ in millions 12 months ended Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Consolidated net income 8,626 9,086 8,634 11,859 6,906 Depreciation and amortization 1,977 1,982 1,954 1,443 1,236 Stock-based compensation expense 227 259 354 380 241 Deferred income taxes 648 632 1,028 617 353 Equity income, net of dividends -201 -426 -269 -671 -359 Foreign currency adjustments 168 -130 7 151 61 Significant (gains) losses on sales of assets, net -670 -98 -220 -645 -43 Other significant (gains) losses, net – – – -4,713 – Other operating charges 465 166 214 264 134 Other items 234 254 -335 477 221 (Increase) decrease in trade accounts receivable 28 -33 -562 -41 -404 (Increase) decrease in inventories -105 -286 -447 182 -50 (Increase) decrease in prepaid expenses and other assets -163 -29 -350 -148 -332 Increase (decrease) in accounts payable and accrued expenses -158 -556 63 656 319 Increase (decrease) in accrued taxes 22 770 -132 -266 81 Increase (decrease) in other liabilities -556 -946 -465 -13 -178 Net change in operating assets and liabilities -932 -1,080 -1,893 370 -564 Net cash provided by operating activities 10,542 10,645 9,474 9,532 8,186 Purchases of investments -14,782 -14,824 -4,798 -4,711 -2,152 Proceeds from disposals of investments 12,791 7,791 5,811 5,004 240 Acquisitions of businesses, equity method investments and nonmarketable securities -353 -1,486 -971 -2,511 -300 Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash used in investing activities Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents, net increase (decrease) during the year Cash and cash equivalents, balance at beginning of year Cash and cash equivalents, balance at end of year

872 -2,550

20 -2,780

398 -2,920

– -2,215

– -1,993

111 -303 -4,214 43,425 -38,714 1,328 -4,832 -4,969 17 -3,745

143 -268 -11,404 42,791 -38,573 1,489 -4,559 -4,595 100 -3,347

101 -145 -2,524 27,495 -22,530 1,569 -4,513 -4,300 45 -2,234

134 -106 -4,405 15,251 -13,403 1,666 -2,961 -4,068 50 -3,465

104 -48 -4,149 14,689 -12,326 664 -1,518 -3,800 -2 -2,293

-611

-255

-430

-166

576

1,972

-4,361

4,286

1,496

2,320

8,442

12,803

8,517

7,021

4,701

10,414

8,442

12,803

8,517

7,021

The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Coca-Cola Co.'s net cash provided by operating activities increased from 2011 to 2012 but then slightly declined from 2012 to 2013. 17

BUSINESS ENVIRONMENT. The Coca-Cola Company is the world‘s largest beverage company. They own or license and market more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. They own and market four of the world‘s top five non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. They make their branded beverage products available to consumers throughout the world through their network of Company-owned or controlled bottling and distribution operations as well as independent bottling partners, distributors, wholesalers and retailers, the world‘s largest beverage distribution system. Beverages bearing trademarks owned by or licensed to us account for 1.9 billion of the approximately 57 billion beverage servings of all types consumed worldwide every day.

In their concentrate operations, they typically sell concentrates and syrups to their bottling partners, who use the concentrate to manufacture finished products which they sell to distributors and other customers. Outside the United States, their concentrate operations also include the sale of concentrates for fountain beverages to their bottling partners who are typically authorized to manufacture fountain syrups, which they sell to fountain retailers such as restaurants and convenience stores which use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers who in turn sell and distribute the fountain syrups to fountain retailers. In addition, from time to time they make equity investments representing noncontrolling interests in selected bottling operations with the intention of maximizing the strength and efficiency of the Coca-Cola system‘s production, marketing, sales and distribution capabilities around the world. These investments are intended to result in increases in unit case volume, net revenues and profits at the bottler level, which in turn generate increased concentrate sales for our Company‘s concentrate and syrup business. When this occurs, both they and their bottling partners benefit from long-term growth in volume, improved cash flows and increased shareowner value.

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Competitive factors impacting their business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection. Their competitive strengths include leading brands with high levels of consumer acceptance; a worldwide network of bottlers and distributors of Company products; sophisticated marketing capabilities; and a talented group of dedicated associates. Their competitive challenges include strong competition in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage suppliers and individual retailers‘ own store or private label beverage brands.

Consumer demand determines the optimal menu of Company product offerings. Consumer demand can vary from one locale to another and can change over time within a single locale. Employing their business strategy, and with special focus on core brands, the Company seeks to build its existing brands and, at the same time, to broaden its historical family of brands, products and services in order to create and satisfy consumer demand locale by locale.

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THE AUDITORS Ernst & Young has one of the world‘s largest tax practices, serving multinational clients that have to comply with multiple local tax laws. It looks like Ernst &Younng has been with Coca-cola since the 90‘s till today. E&Y is one of the Big four accountant firms of the world; third in revenue behind Price waterhouse coopers and Deloitte Touche Tohmatsu, And ahead of KPMG. It has some 700 offices that provide Auditory and accounting services in 140 countries. It also provides legal services and advisory services relating to emerging growth companies, human resources issues, and corporate transactions, mergers and acquisitions, etc. In The next article from 1990 we can prove that E&Y has been collaborating with Coca-cola Co. since that date. Ernst Drops Pepsi for Coke As Auditor A Coke executive, Carlton L. Curtis, disputed Pepsi's account. ''That was an Ernst & Young decision,'' he said. Mort Meyerson, a spokesman for the accounting firm, said, ''We have made a decision to make a choice between two valued clients because we understood the Coca-Cola Company's concerns.'' The auditor change was disclosed yesterday in documents that Pepsico filed with the Securities and Exchange Commission. This is the most prominent account conflict since the merger fever struck the accounting profession last spring. To the accounting firms that were weighing mergers, some shuffling of clients was viewed as unavoidable under the rules governing the profession because of the conflicts that the combinations would create. But accounting experts also predicted that other clients would be uncomfortable being served by the same accounting firm that handled their archrivals. ''They're taking the ad agency attitude, namely we wouldn't have the same ad agency for Pepsi and Coke, so why should we have the same accountants,'' Spencer Harris, a Menlo Park, Calif., publisher who tracks auditor changes, said of Coca-Cola. Arthur Young's relationship with Pepsico spans two and a half decades, while Ernst &Whinney has reviewed Coca-Cola's books since the 1920's. $9 Million Account Ernst & Young is giving up an account that has generated nearly $9 million in each of the last two years in audit and tax fees, according to Pepsico's latest proxy.

20

Coca-Cola and its affiliates are believed to spend about $14 annually. Both numbers are less than 1 percent of Ernst's $4.5 billion in revenues last year. In a deal with the government signed this week, accounting firm Ernst & Young agreed to pay $123 million to the government and admitted to wrongful conduct by some of its partners and employees in connection with the firm‘s participation, from 1999 to 2004, in the promotion of abusive tax shelters to rich individuals. In return, the firm itself won‘t face criminal charges. As part of a non-prosecution agreement that U.S. Attorney for the Southern District of New York PreetBharara announced today, E&Y acknowledged that in league with various law firms, banks and investment advisors, it developed and sold four different tax shelter products designed to save 200 high net worth clients $2 billion in tax. For its efforts, E&Y received gross fees of about $123 million—the amount it‘s now forking over to the government. As part of its deal, E&Y agreed to continue to cooperate with prosecutors and to keep certain restrictions on its tax practice. The accounting firm, one of the four largest in the world, has cooperated with the government investigation since 2004, but acknowledged in the agreement that E&Y employees misled the Internal Revenue Service when it first began investigating the shelters. In a statement, E&Y said, it was ―pleased to put this matter from a decade ago behind us‖ adding that ―as the settlement with the US Attorney‘s office recognizes, these activities represent an isolated period in the firm‘s long history of providing ethical and professional tax services.‖ Indeed, the ―Statement of Facts‖‗ that is part of the agreement concludes with this nod to E&Y: ―The wrongdoing in this case by a small group of professionals at E&Y represented a deviation from the more than 100-year history of ethical and professional conduct by E&Y and its partners.‖ The E&Y deal is just the latest in a long line of settlements relating to the promotion of over the edge-tax-shelters during the late 1990s and early 2000s. In 2005, KPMG agreed to pay what was then a record $456 million fine in a deferred prosecution deal covering its role in promoting shelters. Deutsche Bank agreed to pay a record $554 million in a deferred prosecution deal in 2010. And last June, accounting firm BDO USA paid $50 million, and admitted generating $6.5 billion in phony losses in its own deferred prosecution agreement. In a different line of tax 21

abuse cases, in February 2009, Swiss Bank UBS entered into a deferred prosecution deal and paid $780 million in fines, for its role in helping Americans hide assets offshore. Deferred prosecution, also known as pretrial diversion, has been the feds‘ preferred method of dealing with wrongdoing by prominent corporations since the Department of Justice came under fire for causing the 2002 collapse of accounting firm Arthur Andersen, which was convicted of obstruction of justice in the Enron scandal. This past January, Switzerland‘s oldest bank, Wegelin & Co., went out of business after it was forced to plead guilty to helping to hide $1.2 billion for American tax cheats. In any case, wether the Articles are Negative, Or Positive reads we have to recognize that E&Y has been on Auditing and Accounting issues since long time on and it‘s a Global Firm working around the world with companies like Coke, Pepsi before the incident, Google, and many more offering their services. But, we all now that Avoid taxes is a Crime that by the power of the law have a sentence. Reading about cheating and helping wealthy companies to not pay taxes and not having the punishment that they deserve isn‘t the image that we were expecting to know. You only have one chance to give a good impression, and suddenly reading 2 articles with this information of corrupted firms and companies is kind of disappointing, also the government corruption and the power to the company with money.

INDUSTRY BACKGROUND As we know coke falls within the beverage industry because has a variety of soft drinks: such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks, having a ―great competition‖ involved. Although we know that there are thousands of similar products for coca cola and it does not mean they are "competition" its real competition within this industry is Pepsi in first place. Second place Dr. Pepper, Nestle. Look a little competition between Coke and Pepsi . Pepsi 's birth in 1893 was the largest competition problem for the company , Coca Cola. Although the beginnings were nothing to Pepsi positive after two consecutive

22

failures the company was acquired by a distributor of Coca Cola , who managed to stand up to his former company. Pepsi began an aggressive attitude, increasing the amounts of product and reducing prices compared to Coca Cola, increasing sales However the power of Coca Cola still prevalent in U.S. Pepsi finally managed to catch up with Coke changing its position thanks to unify its flavor and an aggressive advertising strategy. The marketing strategy is mainly rely on differentiate Pepsi Cola of Coca Cola trying to make an approach to the youth segment identifying the Coca Cola drink with traditional parents . This approach was a tremendous success Currently Coca -Cola and Pepsi offer similar, at the same price products, almost always attack the same market segment and its coverage is almost identical worldwide. The 2 companies compete in a much wider range of products including energy drinks, juices and even coffee and tea brands. But the more recognized for us the Mexicans are the following: Coca Vs. Pepsi Coca Light Vs. Pepsi Light Sprite Vs. 7Up Fanta Vs.Mirinda Coca Zero Vs. Pepsi Max

Despite the strong competition between Pepsi and Coke, Coke is what continues to dominate the market for this style of drinks the Coca Cola Company is known for its marketing expertise and the company has always followed a great marketing strategy that is responsible for bringing the success to the company for over a century. The biggest strength of Coca Cola is its brand. It has taken a lot of effort and good strategy to create the widely known brand. Apart from this, there are various strategies that Coca Cola has followed over the years in order to achieve competitive advantage using its Strategic capabilities.

23

OPERATING ACTIVITIES Coca-Cola‘sIncomeStatement.

12 monthsended Net operatingrevenues

Dec 31, 2013

Dec 31, 2012

46,854

48,017

-18,421

-19,053

28,433

28,964

-17,310

-17,738

-895

-447

10,228

10,779

Interest income

534

471

Interest expense

-463

-397

Equity income, net

602

819

Othe rincome (loss), net

576

137

Income before income taxes

11,477

11,809

Income taxes

-2,851

-2,723

8,626

9,086

-42

-67

8,584

9,019

Cost of goodssold Gross profit Selling, general and administrative expenses Other operating charges Operating income

Consolidated net income Net income attribute able to non-controlling interests Net income attribute abletoshareowners of The Coca-Cola Company

24

Coca Cola‘s BALANCE SHEET. Dec 31, 2013 Cash and cash equivalents

Dec 31, 2012

10,414

8,442

6,707

5,017

17,121

13,459

Marketable securities

3,147

3,092

Trade accounts receivable, less allowances

4,873

4,759

Inventories

3,277

3,264

Prepaid expenses and other assets

2,886

2,781

–

2,973

Current assets

31,304

30,328

Equity method investments

10,393

9,216

Other investments, principally bottling companies

1,119

1,232

Other assets

4,661

3,585

14,967

14,476

Trademarks with indefinite lives

6,744

6,527

Bottlers' franchise rights with indefinite lives

7,415

7,405

12,312

12,255

1,140

1,150

Noncurrent assets

58,751

55,846

Total assets

90,055

86,174

Accrued marketing

2,407

2,231

Other accrued expenses

3,515

2,711

Trade accounts payable

1,933

1,969

Accrued compensation

933

1,045

Sales, payroll and other taxes

450

389

Short-term investments Cash, cash equivalents and short-term investments

Assets held for sale

Property, plant and equipment, net

Goodwill Other intangible assets

25

Container deposits

339

335

9,577

8,680

16,901

16,297

1,024

1,577

Accrued income taxes

309

471

Liabilities held for sale

–

796

Current liabilities

27,811

27,821

Long-term debt, excluding current maturities

19,154

14,736

Other liabilities

3,498

5,468

Deferred income taxes

6,152

4,981

Noncurrent liabilities

28,804

25,185

Total liabilities

56,615

53,006

1,760

1,760

Capital surplus

12,276

11,379

Reinvested earnings

61,660

58,045

Accumulated other comprehensive loss

-3,432

-3,385

-39,091

-35,009

33,173

32,790

267

378

Total equity

33,440

33,168

Total liabilities and equity

90,055

86,174

Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt

Common stock, $0.25 par value

Treasury stock, at cost Equity attributable to shareowners of The Coca-Cola Company Equity attributable to non-controlling interests

26

Coca Cola‘s Cash Flow. 12 months ended

Dec 31, 2013

Dec 31, 2012

Consolidated net income

8,626

9,086

Depreciation and amortization

1,977

1,982

Stock-based compensation expense

227

259

Deferred income taxes

648

632

-201

-426

168

-130

-670

-98

–

–

Other operating charges

465

166

Other items

234

254

28

-33

(Increase) decrease in inventories

-105

-286

(Increase) decrease in prepaid expenses and otherassets

-163

-29

Increase (decrease) in accountspayable and accrued expenses

-158

-556

Increase (decrease) in accrued taxes

22

770

Increase (decrease) in other liabilities

-556

-946

Net change in operatingassets and liabilities

-932

-1,080

10,542

10,645

-14,782

-14,824

12,791

7,791

-353

-1,486

872

20

Equity income, net of dividends Foreign currency adjustments Significant (gains) losseson sales of assets, net Other significant (gains) losses, net

(Increase) decrease in trade accounts receivable

Net cash provided by operating activities Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equitymethodinvestments and nonmarketablesecurities Proceedsfromdisposals of businesses, equitymethodinvestments and nonmarketablesecurities

27

Purchases of property, plant and equipment

-2,550

-2,780

111

143

-303

-268

Net cash used in investingactivities

-4,214

-11,404

Issuances of debt

43,425

42,791

Payments of debt

-38,714

-38,573

1,328

1,489

Purchases of stock for treasury

-4,832

-4,559

Dividends

-4,969

-4,595

17

100

-3,745

-3,347

-611

-255

Cash and cash equivalents, net increase (decrease) duringtheyear

1,972

-4,361

Cash and cash equivalents, balance at beginning of year

8,442

12,803

10,414

8,442

Proceedsfromdisposals of property, plant and equipment Other investing activities

Issuances of stock

Other financing activities Net cash used in financingactivities Effect of exchangeratechangeson cash and cash equivalents

Cash and cash equivalents, balance at end of year

28

Coca Cola‘sConsolidatedIncomeStatement. *This shows that Coca Cola Company decreased in the net income during the years 2012-2013, the company has the same revenues, all the loosses are in the operating area as you can see. They have more expenses during 2013.

12 months ended

Dec 31, 2013

Dec 31, 2012

Net operating revenues

100.00%

100.00%

Cost of godos sold

-39.32%

-39.68%

60.68%

60.32%

-36.94%

-36.94%

Other operating charges

-1.91%

-0.93%

Operating income

21.83%

22.45%

Interest income

1.14%

0.98%

Interest expense

-0.99%

-0.83%

Equity income, net

1.28%

1.71%

Other income (loss), net

1.23%

0.29%

Income before income taxes

24.50%

24.59%

Income taxes

-6.08%

-5.67%

Consolidated net income

18.41%

18.92%

Net income attribute ableto non-controlling interests

-0.09%

-0.14%

Net income attribute abletoshareowners of The CocaCola Company

18.32%

18.78%

Gross profit Selling, general and administrative expenses

29

Consolidated Cash Flow 12 monthsended

Dec 31, 2013

Dec 31, 2012

10,542

10,645

12 monthsended

Dec 31, 2013

Dec 31, 2012

Net income from continuing operations

8,584

9,019

12 monthsended

Dec 31, 2013

Dec 31, 2012

Differenc ebetween them

1,958

1,626

Net cash provided by operating activities Consolidated Income Statement.

30

Consolidated Balance Sheet of Financial Position, Assets. Dec 31, 2013 Trade accounts receivable, less allowances

5.41%

Dec 31, 2012 5.52%

31

Trade Accounts Receivable, less Allowances.- Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, which ever is longer),for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection.

Inventories.- The Coca-Cola Company determines cost on the basis of the average cost or first-in, first-out methods.

As it is showed in the following chart: Dec 31, 2013

Dec 31, 2012

Raw materials and packaging

1,692

1,773

Finished goods

1,240

1,171

345

320

3,277

3,264

Other Inventories

The income taxes on undistributed earnings of foreign subsidiaries not deemed to be indefinitely reinvested: Dec 31, 2013 Statutory U.S. federal taxrate State and local incometaxes, net of federal benefit Earnings in jurisdictionstaxed at ratesdifferentfromthestatutory U.S. federal rate Reversal of valuation allowances Equity income or loss

Dec 31, 2012

35.00%

35.00%

1.00%

1.10%

-10.30%

-9.50%

–

-2.40%

-1.40%

-2.00%

32

CCE transaction

–

–

Sale of Norwegian and Swedishbottlingoperations

–

–

1.20%

0.40%

Other, net

-0.70%

0.50%

Effective tax rates

24.80%

23.10%

Other operating charges

Coca-Cola Co.'s effective tax rates declined from 2011 to 2012 but then increased from 2012 to 2013 exceeding 2011 level, as a result that can be in earnings. Their effective tax rate reflects the tax benefits of having significant operations outside the United States, which are generally taxed at rates lower than the U.S. statutory rate of 35 percent. As a result of employment actions and capital investments made by the Company, certain tax jurisdictions provide income tax incentive grants, including Brazil, Costa Rica, Singapore and Swaziland. The terms of these grants expire from 2015 to 2022. We expect each of these grants to be renewed indefinitely. Tax incentive grants favorably impacted our income tax expense by $279 million, $280 million and $193 million for the years ended December 31, 2013, 2012 and 2011, respectively. In addition, their effective tax rate reflects the benefits of having significant earnings generated in investments accounted for under the equity method of accounting, which are generally taxed at rates lower than the U.S. statutory rate. They evaluate their ability to realize the tax benefits associated with deferred tax assets by analyzing their forecasted taxable income using both historical and projected future operating results; the reversal of existing taxable temporary differences; taxable income in prior carry back years; and the availability of tax planning strategies. A valuation allowance is required to be established unless management determines that it is more likely than not that the Company will ultimately realize the tax benefit associated with a deferred tax asset. As of December 31, 2013, the Company‘s valuation allowances on deferred tax assets were $586 million and primarily related to uncertainties regarding the future realization of recorded tax benefits on tax loss carry forwards generated in various jurisdictions.

33

The Company believes it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets.

In 2013, proceeds from disposals of businesses, equity method investments and nonmarketable securities were $872 million. These proceeds primarily included the sale of a majority ownership interest in our previously consolidated Philippine bottling operations, and separately, the deconsolidation of our Brazilian bottling operations, purchases of property, plant and equipment net of disposals for the years ended December 31, 2013, 2012 and 2011 were $2,439 million, $2,637 million and $2,819 million, respectively.

Net income from Operating activities.

10,542

10,645

Net income from Investing activities.

-4,214

-11,404

Net income from Financial Activities.

-3,745

-3,347

34

ANALYSIS OF OPERATING ACTIVITIES Gross Profit Margin Coca-Cola Co., Gross Profit Margin Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Dec 31, 2010

Dec 31, 2009

Selected Financial Data (USD $ in millions) Gross profit Net operating revenues Gross profit margin

(

Ratio Gross Profit Margin

28,433 46,854

28,964 48,017

28,326 46,542

22,426 35,119

19,902 30,990

60.68%

60.32%

60.86%

63.86%

64.22%

)

Description Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.

The company Coca-Cola Co.'s gross profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

35

Operating Profit Margin

Coca-Cola Co., Operating Profit Margin Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Dec 31, 2010

Dec 31, 2009

Selected Financial Data (USD $ in millions) Operating income Net operating revenues

10,228 46,854

10,779 48,017

10,154 46,542

8,449 35,119

8,231 30,990

21.83% 11.48%

22.45% 10.18%

21.82% 10.76%

24.06% 10.31%

26.56% 8.41%

Operating Profit Margin, Comparison to Industry Coca-Cola Co. Industry, Consumer Goods

Ratio Operating Profit Margin

Description A profitability ratio calculated as operating income divided by revenue.

The company Coca-Cola Co.'s operating profit margin improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013 not reaching 2011 level.

36

Net Profit Margin Coca-Cola Co., Net Profit Margin Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Dec 31, 2010

Dec 31, 2009

Selected Financial Data (USD $ in millions) Net income attributable to shareowners of The Coca-Cola Company Net operating revenues

8,584 46,854

9,019 48,017

8,572 46,542

11,809 35,119

6,824 30,990

18.32% 8.60%

18.78% 7.49%

18.42% 9.33%

33.63% 8.38%

22.02% 6.40%

Net Profit Margin, Comparison to Industry Coca-Cola Co. Industry, Consumer Goods

1

Ratio Net Profit Margin

Description

The company

An indicator of profitability, calculated as net income divided by revenue.

Coca-Cola Co.'s net profit margin improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

37

Receivables turnover Coca-Cola Co., Receivables Turnover Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Dec 31, 2010

Dec 31, 2009

Selected Financial Data (USD $ in millions) Net operating revenues Trade accounts receivable, less allowances

46,854 4,873

48,017 4,759

46,542 4,920

35,119 4,430

30,990 3,758

9.62 12.70

10.09 11.74

9.46 13.36

7.93 12.24

8.25 13.79

Receivables Turnover, Comparison to Industry Coca-Cola Co. Industry, Consumer Goods

Ratio Receivables Turnover

Description An activity ratio equal to revenue divided by receivables.

The company Coca-Cola Co.'s receivables turnover improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013 not reaching 2011 level.

38

Inventory Turnover Coca-Cola Co., Inventory Turnover Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Dec 31, 2010

Dec 31, 2009

Selected Financial Data (USD $ in millions) Cost of goods sold Inventories

18,421 3,277

19,053 3,264

18,216 3,092

12,693 2,650

11,088 2,354

5.62 6.79

5.84 6.63

5.89 7.33

4.79 6.94

4.71 6.85

Inventory Turnover, Comparison to Industry Coca-Cola Co. Industry, Consumer Goods

Ratio Inventory turnover

Description The company An activity ratio calculated Coca-Cola Co.'s as cost of goods sold inventory turnover divided by inventory. deteriorated from 2011 to 2012 and from 2012 to 2013.

39

Total asset turnover Coca-Cola Co., Total Asset Turnover Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Dec 31, 2010

Dec 31, 2009

Selected Financial Data (USD $ in millions) Net operating revenues Total assets

46,854 90,055

48,017 86,174

46,542 79,974

35,119 72,921

30,990 48,671

0.52 0.73

0.56 0.72

0.58 0.75

0.48 0.73

0.64 0.75

Total Asset Turnover, Comparison to Industry Coca-Cola Co. Industry, Consumer Goods

Ratio Total asset turnover

Description An activity ratio calculated as total revenue divided by total assets.

The company Coca-Cola Co.'s total asset turnover deteriorated from 2011 to 2012 and from 2012 to 2013.

40

Equity Turnover Coca-Cola Co., Equity Turnover Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Dec 31, 2010

Dec 31, 2009

Selected Financial Data (USD $ in millions) Net operating revenues Equity attributable to shareowners of The CocaCola Company

46,854

48,017

46,542

35,119

30,990

33,173

32,790

31,635

31,003

24,799

1.41 2.32

1.46 2.34

1.47 2.37

1.13 2.36

1.25 2.58

Equity Turnover, Comparison to Industry Coca-Cola Co. Industry, Consumer Goods

Ratio Equity turnover

Description An activity ratio calculated as total revenue divided by shareholders' equity.

The company Coca-Cola Co.'s equity turnover deteriorated from 2011 to 2012 and from 2012 to 2013.

Information was found in: http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/Profile

41

INVESTING ACTIVITIES Cash Equivalents The Coca-Cola Company classifies time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. The Coca-Cola Company manages exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor credit risk concentrations. Short-Term Investments The Coca-Cola Company classifies time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. Investments in Equity and Debt Securities The Coca-Cola Company uses the equity method to account for investments in equity securities if investment gives The Coca-Cola Company the ability to exercise significant influence over operating and financial policies of the investee. The Coca-Cola Company includes proportionate share of earnings and/or losses of equity method investees in equity income (loss) — net in consolidated statements of income. The carrying value of The Coca-Cola Company's equity investments is reported in equity method investments in consolidated balance sheets. The Coca-Cola Company accounts for investments in companies that The CocaCola Company does not control or accounts for under the equity method either at fair value or under the cost method, as applicable. Investments in equity securities, other than investments accounted for under the equity method, are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as either trading or available-for-sale securities with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in other income (loss) — net in The CocaCola Company's consolidated statements of income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in The CocaCola Company's consolidated balance sheets as a component of accumulated other comprehensive income (loss) ("AOCI"). Trading securities are reported as either marketable securities or other assets in The Coca-Cola Company's consolidated balance sheets. Securities classified as available-for-sale are reported as either marketable securities, other investments or other assets in 42

consolidated balance sheets, depending on the length of time The Coca-Cola Company intends to hold the investment. Investments in equity securities that The Coca-Cola Company does not control or accounts for under the equity method and does not have readily determinable fair values for are accounted for under the cost method. Cost method investments are originally recorded at cost and The Coca-Cola Company records dividend income when applicable dividends are declared. Cost method investments are reported as other investments in The Coca-Cola Company's consolidated balance sheets, and dividend income from cost method investments is reported in the line item other income (loss) — net in consolidated statements of income. The Coca-Cola Company's investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Each reporting period The Coca-Cola Company reviews all of investments in equity and debt securities, except for those classified as trading, to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of each investment. When such events or changes occur, The Coca-Cola Company evaluates the fair value compared to cost basis in the investment. The Coca-Cola Company also performs this evaluation every reporting period for each investment for which cost basis exceeded the fair value in the prior period. The fair values of most of The Coca-Cola Company's investments in publicly traded companies are often readily available based on quoted market prices. For investments in non-publicly traded companies, management's assessment of fair value is based on valuation methodologies including discounted cash flows, estimates of sales proceeds and appraisals, as appropriate. The CocaCola Company considers the assumptions that The Coca-Cola Company believes hypothetical marketplace participants would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. In the event the fair value of an investment declines below The Coca-Cola Company's cost basis, management determines if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the 43

extent to which the market value has been less than The Coca-Cola Company's cost basis, the financial condition and near-term prospects of the issuer, and intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value.

Source: Coca-Cola Co., Annual Report

44

Item Non-Current Assets

Description Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

Coca Cola Company Coca-Cola Co.'s noncurrent assets increased from 2011 to 2012 and from 2012 to 2013.

Coca-Cola Co., Consolidated Statement of Financial Position, Assets USD $ in millions

Cash and cash equivalents Short-term investments Cash, cash equivalents and short-term investments Marketable securities Trade accounts receivable, less allowances Inventories Prepaid expenses and other assets Assets held for sale Current assets Equity method investments Other investments, principally bottling companies Other assets Property, plant and equipment, net Trademarks with indefinite lives Bottlers' franchise rights with indefinite lives Goodwill Other intangible assets Noncurrent assets Total assets

Dec 31, 2013 10,414 6,707

Dec 31, 2012 8,442 5,017

17,121 3,147 4,873 3,277 2,886 – 31,304 10,393 1,119 4,661 14,967 6,744 7,415 12,312 1,140 58,751 90,055

13,459 3,092 4,759 3,264 2,781 2,973 30,328 9,216 1,232 3,585 14,476 6,527 7,405 12,255 1,150 55,846 86,174

Source: Coca-Cola Co., Annual Reports

45

Non Current Assets 60,000 58,000 56,000 54,000 Non Current Assets

52,000 50,000 48,000 46,000 2010

2011

2012

2013

Coca-Cola Co., Common-Size Consolidated Statement of Financial Position, Assets

Cash and cash equivalents Short-term investments Cash, cash equivalents and short-term investments Market able securities Trade accounts receivable, less allowances Inventories Prepaid expenses and other assets Assets held for sale Current assets Equity method investments Other investments, principally bottling companies Other assets Property, plant and equipment, net Trade marks within definite lives Bottlers' franchise rights with indefinite lives Goodwill Other intangible assets Non-current assets Total assets

Dec 31, 2013 Dec 31, 2012 11.56% 9.80% 7.45% 5.82% 19.01% 15.62% 3.49% 5.41% 3.64% 3.20% – 34.76% 11.54% 1.24% 5.18% 16.62% 7.49% 8.23% 13.67% 1.27% 65.24% 100.00%

3.59% 5.52% 3.79% 3.23% 3.45% 35.19% 10.69% 1.43% 4.16% 16.80% 7.57% 8.59% 14.22% 1.33% 64.81% 100.00%

46

Non-Current Assets 36.00% 35.00% 34.00% 33.00% 32.00% 31.00% 30.00% 29.00% 28.00% 27.00% 26.00%

Non-Current Assets

2010

2011

2012

2013

(As a Percentage)

47

The Coca-Cola Company (KO) Cash Flow.(Thousands) PeriodEnding

Dec 31, 2013

Dec 31, 2012

Dec 31, 2011

Net Income

8,584,000

9,019,000

8,584,000

1,977,000

1,982,000

1,954,000

Operating Activities, Cash Flows Provided By or Used In Depreciation AdjustmentsTo Net Income

871,000

657,000

767,000

Changes In AccountsReceivables

-

-

-

Changes In Liabilities

-

-

-

Changes In Inventories

-

-

-

Changes In Other Operating Activities Total Cash Flow From Operating Activities

(932,000) 10,542,000

(1,080,000) 10,645,000

(1,893,000) 9,474,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures

(2,550,000)

(2,780,000)

(2,920,000)

Investments

(1,991,000)

(7,033,000)

1,013,000

327,000

(1,591,000)

(617,000)

(4,214,000)

(11,404,000)

(2,524,000)

Dividends Paid

(4,969,000)

(4,595,000)

(4,300,000)

Sale Purchase of Stock

(3,504,000)

(3,070,000)

(2,944,000)

Net Borrowings

4,711,000

4,218,000

4,965,000

17,000

100,000

45,000

Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In

Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents

(3,745,000)

(3,347,000)

(2,234,000)

(611,000)

(255,000)

(430,000)

1,972,000

(4,361,000)

4,286,000

48

ANALYSIS OF INVESTIG ACTIVITIES Ratio

Description

Coca Cola

ROA

A profitability ratio calculated as adjusted net income divided by total assets.

Coca-Cola Co.'s adjusted ROA deteriorated from 2011 to 2012 and from 2012 to 2013.

Company´s Rate of Return (Accrual Basis)

Formula: (expressed in percentage)

Coca-Cola Co., Adjusted Return On Assets (ROA) Dec 31, 2013

Dec 31, 2012

As Reported Net income attributable to shareowners of The Coca-Cola Company (USD $ in millions) Total assets (USD $ in millions)

8,584 90,055

9,019 86,174

ROA

9.53%

10.47%

Adjusted net income attributable to shareowners of The Coca-Cola Company (USD $ in millions) Total assets (USD $ in millions)

8,504 90,055

9,197 86,174

Adjusted ROA

9.44%

10.67%

Adjusted: Mark to Market Available-for-sale Securities

Coca Cola 2013 Net Incomeadjusted: $8,504,000 Total Assets: $90,055,000 Substitution 49

100 × 8,504 ÷ 90,055 = 9.44

Company´s Rate of Return (Cash Flow Basis) Item Description Net cash provided by The net cash from (used operating activities in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities.

Coca Cola Coca-Cola Co.'s net cash provided by operating activities increased from 2011 to 2012 but then slightly declined from 2012 to 2013.

( )

(

)

Google 2012 : $10,645,000 Total Assets: $86,174,000

( )

(

)

Cash Return on Assets= 12.35%

Coca Cola 2013 Cash Flow from Operating Activities: $10,542,000 50

Total Assets:$90,055,000 ( )

(

)

Cash Return on Assets= 11.71%

51

These two measurements tell us how well the company is running. The ROA shows how profitable company´s assets are in generating revenue. In addition, the Cash Return on Assets measures the Cash Flow from Operations in the relation to Total Assets. We think the ―ROA‖ is more indicative on the firm‘s financial performance because it shows how much revenue Coke is able to generate and how much money goes to the company. In addition the ―Cash Return on Assets‖ as our point of view it is extremely important, for the company and especially for those that interested in investing on the Company. With this measure, the company will be able to see how efficient is being. Moreover, this is something that could be attractive for the regular investor, because it tells them the financial skills that the company have. These results show us that the company is going on good track. Although comparing these measures with the industry the ROA is a bit down than for example PepsiCo that is in the same beverage industry. We believe this is a good result, because the industry that we are talking about is ―Beverage‖ and Coca Cola is a company leading in this industry, the companies competing aren‘t as strong as this company known worldwide. Let‘s remember that Coke sells soft drinks like Coke, Sprite, Powerade etc. It is a very strong competitive company, but the advantage that PepsiCo has is that they also sell Sabritas etc. that makes them have more revenues because they offer more products. But Coke is a leading company and has a great prestige since many years. This information could be useful to the purchase of another company, the constructions of new buildings, offices, stores etc. This information could either convince an investor or make him change his mind.

52

Operating Profits by Product Lines The Coca-Cola Company (NYSE: KO) is the world‘s largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. Based in Atlanta, Georgia, KO sells concentrated forms of its beverages to bottlers who then produce, package, and sell the finished products to retailers. The CocaCola Company operates in over 200 countries and sells more than 400 different brands that produce over 3000 different products, including the famous Coca-Cola and Sprite lines of soft drinks. Growing consumer preference for healthier drinks and increasingly saturated markets has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KO‘s sales. KO‘s profits are also vulnerable to the volatile costs for the raw materials used to make drinks - the corn syrup used as a sweetener, the aluminum used in cans, and the plastic used in bottles. Furthermore, decreased consumer spending in Coke's large North American market compounds the challenge of rising costs and a weak economic environment.[3] Finally, Coca-Cola earns approximately 75% of revenue from international sales, exposing it to currency fluctuations, which are particularly adverse with a stronger U.S. Dollar (USD). Despite these challenges, Coca-Cola has remained profitable. Though the nonCSD market is growing quickly, the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. The size and variety of KO‘s offerings in the CSD category, coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to maintain its share of this important market. KO has also responded to consumers‘ changing tastes with new, non-CSD product launches and acquisitions such as that of Glaceau. Strong international growth has also more than offset a weak domestic market.

53

54

Debt Financing. Coca-Cola‘s Balance Sheet. Dec 31, 2013

Dec 31, 2012

Accrued marketing

2.407

2.231

Other accrued expenses

3.515

2.711

Trade accounts payable

1.933

1.969

Accrued compensation

933

1.045

Sales, payroll and other taxes

450

389

Container deposits

339

335

9.577

8.680

Accounts payable and accrued expenses

55

Item

Description

Loans and notes payable

The company

16.901

16.297

1.024

1.577

Accrued income taxes

309

471

Liabilities held for sale

–

796

Current liabilities

27.811

27.821

Long-term debt, excluding current maturities

19.154

14.736

Other liabilities

3.498

5.468

Deferred income taxes

6.152

4.981

Noncurrent liabilities

28.804

25.185

Total liabilities

56.615

53.006

Current maturities of long-term debt

The statement of financial position provides creditors, investors, and analysts with information on company's resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company's assets as well as an indication of cash flows that may come from receivables and inventories. Liabilities represent obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

56

Tradeaccountspayable

Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

Coca-Cola Co.'s trade accounts payable declined from 2011 to 2012 and from 2012 to 2013.

Currentliabilities

Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.

Coca-Cola Co.'s current liabilities increased from 2011 to 2012 but then slightly declined from 2012 to 2013.

Noncurrentliabilities

Total obligations incurred as part of normal operations that is expected to be repaid beyond the following twelve months or one business cycle.

Coca-Cola Co.'s noncurrent liabilities increased from 2011 to 2012 and from 2012 to 2013.

57

58

Coca-Cola Co., Common-Size Consolidated Income Statement

Interestincome

1,14%

0,98%

Interest expense

-0,99%

-0,83%

Equityincome, net

1,28%

1,71%

Otherincome (loss), net

1,23%

0,29%

24,50%

24,59%

Incomebeforeincometaxes

Obligations over the next five years.

Coca-Cola Co., Statement of Financial Position, Debt USD $ in millions

Dec 31, 2013 Loans and notes payable

Dec 31, 2012

16.901

16.297

1.024

1.577

Long-term debt, excluding current maturities

19.154

14.736

Total debt

37.079

32.610

Current maturities of long-term debt

59

In 2012, Coca Cola had a debt of 14.73 in long term, that the next year (2013) we can see the debt increase to 19.15.

As of December 31, 2013, the Company had $6,410 million in lines of credit for general corporate purposes. These backup lines of credit expire at various times from 2014 through 2018. There were no borrowings under these backup lines of credit during2013. These credit facilities are subject to normal banking terms and conditions. Some of the financial arrangements requirecompensating balances.

Deferred income tax liabilities as of December 31, 2013, were $6,491 million. Refer to Note 14 of Notes to Consolidated Financial Statements. This amount is not included in the total contractual obligations table because we believe that presentation would not be meaningful. Deferred income tax liabilities are calculated based on temporary differences between the tax bases of assets and liabilities and 60

their respective book bases, which will result in taxable amounts in future years when the liabilities are settled at their reported financial statement amounts. The results of these calculations do not have a direct connection with the amount of cash taxes to be paid in any future periods. As a result, scheduling deferred income tax liabilities as payments due by period could be misleading, because this scheduling would not relate to liquidity needs.

Pension and Other Postretirement Benefit Plans Coca-Cola‘s Company sponsors and/or contributes to pension and postretirement health care and life insurance benefit plans covering substantially all U.S. employees. They also sponsor nonqualified, unfunded defined benefit pension plans for certain associates and participate in multi-employer pension plans in the United States. In addition, the Company and its subsidiaries have various pension plans and other forms of postretirement arrangements outside the United States.

Debt Financing Issuances and payments of debt included both short-term and long-term financing activities. On December 31, 2013, they had $6,410 million in lines of credit available for general corporate purposes. These backup lines of credit expire at various times from 2014 through 2018. There were no borrowings under these backup lines of credit during 2013. These credit facilities are subject to normal banking terms and conditions.

Coca-Cola in 2013 made payments of $38,714 million, which included $70 million of net payments of commercial paper and short-term debt with maturities of 90 days or less, $35,199 million of payments of commercial paper and short-term debt with maturities greater than 90 days and long-term debt payments of $3,445 million. The long-term debt payments included the extinguishment of $2,154 million of long-term debt prior to maturity, which resulted in associated charges of $53 million, including hedge accounting adjustments reclassified from accumulated other comprehensive income, in the line item interest expense in our consolidated statement of income during the year ended December 31, 2013.

61

Coca-Cola‘s Cash Flow (Financial Activies) 12 monthsended Dec 31, 2013

Dec 31, 2012

Issuances of debt

43.425

42.791

Payments of debt

-38.714

-38.573

1.328

1.489

Purchases of stock for treasury

-4.832

-4.559

Dividends

-4.969

-4.595

17

100

-3.745

-3.347

Issuances of stock

Other financing activities Net cash used in financing activities

Contigent Liabilities.

The Company has numerous global insurance programs in place to help protect the Company from the risk of loss. In general, we are self-insured for large portions of many different types of claims; however, we do use commercial insurance above our self-insured retentions to reduce the Company‘s risk of catastrophic loss. Our reserves for the Company‘s self-insured losses are estimated through actuarial 62

procedures of the insurance industry and by using industry assumptions, adjusted for our specific expectations based on our claim history. The Company‘s selfinsurance reserves totaled $537 million and $508 million as of December 31, 2013 and 2012, respectively. The following table summarizes our minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of December 31, 2013 (in millions):

As of December 31, 2013, we were contingently liable for guarantees of indebtedness owed by third parties of $662 million, of which $288 million was related to VIEs. Refer to Note 1 for additional information related to the Company‘s maximum exposure to loss due to our involvement with VIEs. Our guarantees are primarily related to third-party customers, bottlers, vendors and container manufacturing operations and have arisen through the normal course of business. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. Management believes that the total liabilities to the Company that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the Company taken as a whole. Does Coca-Cola have a financial well-being? The information shows that in debts, Coca-Cola increased talking about the long term debts, but you can also see that in the prediction they have for the next years is that in debt, they are going to go down, which means that financially, they are going to be good by time and you can see also that they know how to manage the payments they have to do.

63

EQUITY FINANCING. Leverage ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. A low debt to equity ratio indicates lower risk, because debt holders have less claims on the company's assets. A debt to equity ratio of 5 means that debt holders have a 5 times more claim on assets than equity holders. A high debt to equity ratio usually means that a company has been aggressive in financing growth with debt and often results in volatile earnings. Calculation: Debt to Equity = (Long Term Debt + Current Portion of Long Term Debt) / Total Shareholders' Equity

USD $ in millions. Dec 31, 2013

Dec 31, 2012

Accrued marketing

2,407

2,231

Other accrued expenses

3,515

2,711

Trade accounts payable

1,933

1,969

Accrued compensation

933

1,045

Sales, payroll and other taxes

450

389

Container deposits

339

335

9,577

8,680

Accounts payable and accrued expenses Loans and notes payable

16,901

16,297

1,024

1,577

Accrued income taxes

309

471

Liabilities held for sale

–

796

Current maturities of long-term debt

Current liabilities Long-term debt, excluding current maturities

27,811

27,821

19,154

14,736

Other liabilities

3,498

5,468

Deferred income taxes

6,152

4,981

28,804

25,185

56,615

53,006

1,760

1,760

Capital surplus

12,276

11,379

Reinvested earnings

61,660

58,045

Noncurrent liabilities Total liabilities Common stock, $0.25 parvalue

64

Accumulated other comprehensive loss Treasury stock, at cost Equity attributable to shareowners of The Coca-Cola Company Equity attributable to non-controlling interests Total equity Total liabilities and equity

(3,432)

(3,385)

(39,091)

(35,009)

33,173

32,790

267

378

33,440

33,168

90,055

86,174

We record changes in the fair value like gains or losses of the derivatives in the accompanying Consolidated Statements of income as interest and other income, net, as part of revenues, or as a component of accumulated other comprehensive income (AOCI) in the accompanying Consolidated Balance Sheets.     

Coca-Cola Co.'s net operating revenues increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level. Coca-Cola Co.'s operating income increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level. Coca-Cola Co.'s income before income taxes increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level. Coca-Cola Co.'s consolidated net income increased from 2011 to 2012 but then declined significantly from 2012 to 2013. Coca-Cola Co.'s net income attributable to shareowners of The Coca-Cola Company increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level.

Business enters into foreign currency contracts with financial institutions to reduce the risk that cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. Use certain interest rate derivative contracts to hedges interest rate exposures on our fixed income securities and our anticipated debt issuance.

65

TOTAL EQUITY

Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity.

Coca-Cola Co.'s total equity increased from 2011 to 2012 and from 2012 to 2013.

Our Company uses derivative financial instruments primarily to reduce our exposure to adverse fluctuations in foreign currency exchange rates and, to a lesser extent, adverse fluctuations in interest rates and commodity prices and other market risks. We do not enter into derivative financial instruments for trading purposes. As a matter of policy, all our derivative positions are used to reduce risk by hedging an underlying economic exposure. Because of the high correlation between the hedging instrument and the underlying exposure, fluctuations in the value of the instruments are generally offset by reciprocal changes in the value of the underlying exposure. Virtually all of our derivatives are straightforward, overthe-counter instruments with liquid markets.

Foreign Exchange We manage most of our foreign currency exposures on a consolidated basis, which allows us to net certain exposures and take advantage of any natural offsets. In 2005, we generated approximately 71 percent of our net operating revenues from operations outside of our North America operating group; therefore, weakness in one particular currency might be offset by strengths in others over time. We use derivative financial instruments to further reduce our net exposure to currency fluctuations.

66

Our Company enters into forward exchange contracts and purchases currency options (principally euro and Japanese yen) and collars to hedge certain portions of forecasted cash flows denominated in foreign currencies. Additionally, we enter into forward exchange contracts to offset the earnings impact relating to exchange rate fluctuations on certain monetary assets and liabilities. We also enter into forward Exchange contracts as hedges of net investments in international operations.

Interest Rates We monitor our mix of fixed-rate and variable-rate debt, as well as our mix of term debt versus non-term debt. From time to time we enter into interest rate swap agreements to manage our mix of fixed-rate and variable-rate debt.

Comparise Last Balance Sheet.

PeriodEnding

Mar 28, 2014

Dec 31, 2013

Cash And Cash Equivalents

9,131,000

10,414,000

Short Term Investments

10,302,000

9,854,000

Net Receivables

5,233,000

4,873,000

Inventory

3,357,000

3,277,000

Other Current Assets

3,029,000

2,886,000

Total Curren tAssets

31,052,000

31,304,000

Long Term Investments

13,127,000

11,512,000

Property Plant and Equipment

14,860,000

14,967,000

Goodwill

12,343,000

12,312,000

Intangible Assets

15,252,000

15,299,000

Accumulated Amortization

-

-

67

Other Assets

4,655,000

4,661,000

Deferred Long Term Asset Charges

-

-

Total Assets

91,289,000

90,055,000

Accounts Payable

10,255,000

9,886,000

Short/Current Long Term Debt

19,801,000

17,925,000

Other Current Liabilities

-

-

Total Current Liabilities

30,056,000

27,811,000

Long Term Debt

18,640,000

19,154,000

Other Liabilities

3,414,000

3,498,000

Deferred Long Term Liability Charges

6,257,000

6,152,000

Minority Interest

268,000

267,000

Negative Goodwill

-

-

Total Liabilities

58,635,000

56,882,000

Misc Stocks Options Warrants

-

-

Redeemable Preferred Stock

-

-

Preferred Stock

-

-

Common Stock

1,760,000

1,760,000

Retained Earnings

61,937,000

61,660,000

Treasury Stock

(39,781,000)

(39,091,000)

Capital Surplus

12,332,000

12,276,000

Other Stockholder Equity

(3,594,000)

(3,432,000)

Total Stockholder Equity

32,654,000

33,173,000

Net Tangible Assets

5,059,000

5,562,000

68

Value-at-Risk and Significant Equity Financing Activities. We monitor our exposure to financial market risks using several objective measurement systems, including value-at-risk models. Our value-at-risk calculations use a historical simulation model to estimate potential future losses in the fair value of our derivatives and other financial instruments that could occur as a result of adverse movements in foreign currency and interest rates. We have not considered the potential impact of favorable movements in foreign currency and interest rates on our calculations. We examined historical weekly returns over the previous 10 years to calculate our value-at-risk. The average value-at-risk represents the simple average of quarterly amounts over the past year. As a result of our foreign currency of Equity Financing calculations, we estimate with 95 percent confidence that the fair values of our foreign currency derivatives and other financial instruments, over a one-week period, would decline by less than $9 million, $17 million and $26 million, respectively, using 2011, 2012 or 2013 average fair values, and by less than $9 million and $18 million, respectively, using December 31, 2012 and 2013 fair values. According to our interest rate value-atrisk calculations, we estimate with 95 percent confidence that any increase in our net interest expense due to an adverse move in our 2012 average or in our December 31, 2013, interest rates over a one-week period would not have a material impact on our consolidated financial statements. Our December 31, 2013 estimates also were not material to our consolidated financial statements.

69

ANALYSIS OF FINANCING ACTIVITIES. Coca-Cola, Consolidated Statement of Stockholder‘s Equity USD $ in millions.

Financial Position, Liabilities and

Mar 28, 2014 30,056,000 28,579,000 58,635,000 32,654,000 91,289,000

Current Liabilities Non-current liabilities Total liabilities Stockholders equity Total liabilities and stockholders equity.

Dec 31, 2013 27,811,000 29,071,000 56,882,000 33,173,000 90,055,000

We can see in the chart that Coca-Cola has that much of liabilities is telling us that they are investing on its operating activities in order to keep getting more revenue. But in this case the stockholders are receiving less quantity that we get in the total liabilities. In my opinion Coca Cola is going great. Their results are more and better over the years. Coca-Cola hasn‘t made any material changes in capital structure in the past two years.

STOCK EXCHANGE: NYSE, KO $40.95

0.17 (0.42%)

Open

Day High

52-Wk High

$40.79

$40.96

$43.43

Shares Outstanding

Volume

Prev. Close

Day Low

52-Wk Low

4,395,183,000

14,197,800

$40.78

$40.63

$36.83

70

Rate of Return on Total Assets. Ratio

Description A profitability ratio calculated as net income divided by total assets.

ROA

ROA% =

The Company Coca-Cola Co.'s ROA deteriorated from Q3 2013 to Q4 2013 and from Q4 2013 to Q1 2014.

NET INCOME___ (100) TOTAL ASSETS

Coca-Cola K.O 2013 Net Income = 8,584,000 Total Assets= 90,055,000 ROA%=

(100)

ROA = 9.53%

Coca-Cola K.O 2012 Net Income = 9,019,000 Total Assets= 86,174,000 ROA%=

(100)

ROA= 10.46%

71

Rate of Return on Total Stockholder’s Equity Ratio

Description A profitability ratio calculated as net income divided by shareholders' equity.

ROE

ROE% =

The Company Coca-Cola Co.'s ROE improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

NET INCOME___ (100)

STOCKHOLDER‘S EQUITY

Coca-Cola K.O 2013 Net Income = 8,584,000 Total Assets= 33,173,000 ROE%=

(100)

ROE = 25.87%

Coca-Cola K.O 2012 Net Income = 8,584,000 Total Assets= 32,790,000 ROE%=

(100)

ROE = 26.17%

72

Dividend Payout Ratio

Dividend Payout Ratio =

DIVIDENDS___ NET INCOME

Coca-Cola K.O 2013 Dividend Payout Ratio= Dividend Payout Ratio = 1.89

Coca-Cola K.O 2012 Dividend Payout Ratio= Dividend Payout Ratio = 2.72

In dividends investing, Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

73

Financial Ratios

Ratio

Description A liquidity ratio calculated as current assets divided by current liabilities.

Current Ratio

Current Ratio =

The Company Coca-Cola Co.'s current ratio improved from 2011 to 2012 and from 2012 to 2013.

CURRENT ASSETS___ CURRENT LIABILITIES

Coca-Cola K.O 2013 Current Assets = 31,304,000 Current Liabilities= 27,811,000 Current Ratio= Current Ratio = 1.12

Coca-Cola K.O 2012 Current Assets = 30,328,000 Current Liabilities= 27,821,000 Current Ratio= Current Ratio = 1.09

74

Ratio

Description A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.

Quick Ratio

Quick Ratio =

The Company Coca-Cola Co.'s quick ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

CURRENT ASSETS-INVENTORY___ CURRENT LIABILITIES

Coca-Cola K.O 2013 Current Assets = 31,304,000 Current Liabilities= 27,811,000 Inventory= 6,163,000 Current Ratio= Quick Ratio = .90

Coca-Cola K.O 2012 Current Assets = 31,304,000 Current Liabilities= 27,811,000 Inventory= 9,994,000 Current Ratio= Quick Ratio = .76

75

Ratio Debt-to-Equity Ratio

Description A solvency ratio calculated as total debt divided by total shareholders' equity.

Debt-to-Equity Ratio =

The Company Coca-Cola Co.'s debt-toequity ratio deteriorated from 2011 to 2012 and from 2012 to 2013.

TOTAL LIABILITIES___ STOCKHOLDER‘S EQUITY

Coca-Cola K.O 2013 Total Liabilities= 37,079,000 Stockholder‘s Equity = 33,173,000 Debt-to-Equity Ratio= Debt-to-Equity Ratio = 1.12

Coca-Cola K.O 2013 Total Liabilities= 32,610,000 Stockholder‘s Equity = 32,790,000 Debt-to-Equity Ratio= Debt-to-Equity Ratio = .99

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Financial Ratios In the Company that we chose Coca-Cola KO. I think the most important ratios for the investors are the ROA and the Cash Return on Assets in order to check out the Company‘s activities and how well its managing its money. The ratio that in my opinion its more interested to the investors is the ROE, and with this ratios results we can tell that investors would be very interested on invest in this company because the results have been good. The other ratios that we already calculated tell us that Coca-Cola KO. Has been doing a good Financial job. Which this is very attractive to the investors, because no one wants to invest on a company that does not manage its capital well. In addition, Coca-Cola KO. Has demonstrated that is a very efficient company with all the potencial to win to different benchmarks.

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COMPARISON TO INDUSTRY BENCHMARKS Comparing Coca-Cola, we have another globally important benchmarks like Pepsi, first the different flavors that they have for example Coca-cola has Coca-Cola, New Coke which was renamed Coke II, Diet Coke (also known as Coca-Cola Light), Diet Coke Plus, Coca-Cola C2, Coca-Cola Zero, Coca-Cola Cherry Zero, Caffeine Free Coca-Cola, Caffeine Free Diet Coke etcetera and in the other hand Pepsi has Pepsi Diet, Pepsi, Pepsi max, Pepsi One, Caffeine Free Pepsi, Caffeine free Diet Pepsi, Pepsi Throwback, and Pepsi Next. Prices for coke and pepsi vary by the flavor and size. Talking about numbers over the last several years, Coca Cola stock has significantly outperformed Pepsico. In fact since 2005, Coke's stock price has gained 35%, while Pepsi eked out only a marginal 3% gain. If you take into account dividend payments, Coke delivered a 52% return to investors while Pepsi's 13% return paled in comparison. Coca Cola's market cap is currently 33% higher than Pepsi's. Pepsi and Coke both offer similar dividend yields of 3%. Although Pepsi's dividend payout ratio is slightly lower than Coca Cola's, the difference is marginal.

Since the end of the 19th century, Pepsi and Coca-Cola have been making slugging it out over the hearts, minds, and wallets of the world's soda drinkers. On the surface, the two companies look similar given that they both are valued at around 17 times their future expected earnings.

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Coca-Cola

PepsiCo

Market Cap

$173 billion

$125 billion

Revenues

$47 billion

$66 billion

Profit Margin

18.5%

10.1%

Return on Equity

26.7%

30.5%

Net Income

$8.7 billion

$6.7 billion

Price to Forward Earnings

17.6x

17.3x

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CONCLUSIONS Alexia Karina Gómez Vélez

id 1549372

In this project we learned that The Coca-Cola Company is the world‘s largest beverage company. Along with Coca-Cola, recognized as the world‘s most valuable brand, the Company markets four of the world‘s top five nonalcoholic sparkling brands. Through the world‘s largest beverage distribution system, consumers in more than 200 countries enjoy the Company‘s beverages at a rate of 1.5 billion servings each day. We have audited The Coca-Cola Company‘s internal control over financial reporting as of December 31, 2012 and 2013. The Coca-Cola Company‘s management is responsible for maintaining effective internal control over financial reporting. I think a company‘s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

How we can see in this project and the financial reports during the last 2 years, we notice that 2012 was better than 2013, comparing the results, but not by much difference, in my opinion this is just about has new actions plans for the following years to make the company move faster and better than other benchmarks. In conclusion I think, The Coca-Cola Company maintained, in all material respects, effective internal control over financial reporting.

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Leonel Alan Mota Garza. 1555877. As we can see in this Project, we saw a lot of points referring to Coca-Cola‘s company, looking for its financial position, viewing where they are, where they are good in the market, how bad they are o they are going to be. We know this company is one of the most known in all world, so it has its competition, but as you know, people still prefer coca cola because of how they create its products, you can compare it with other one, and maybe you can see that other one can have more revenues, but because it is in other industry too, but if you compare both companies, but just in the same industry, you‘ll see coca cola has more revenues, but that‘s not all about this project. As you see this project, you can realize and you can see how well this company is, the way they manage their debt, how they manage their expenses and the revenues, because they re-watch the last year and so on, to see how they‘re going in the ―present‖ day, so that‘s why they do all the financial statements you could see here, the point of this project is to relate the subject with ―real-life‖ cases, but also to know in future how to manage a process as well. This project was done with the knowledge we got and with the support of pages where we saw the numbers or information needed and we transformed it into the development of this work, which was good because we could relate the way or the numbers they gave you and convert them in what you need, interpret it.

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Edwin Cid Vergara. 1648752 In this Project, we can saw lot of points referring to Coca-Colacompany, viewing where they are, where they are good in the market, how bad they are o they are going to be, if they are good enough to make to people keep drink their products, and keep having recognition around the world. We know this company is one of the most known in all world, so it has its competition, but as you know, people still prefer coca cola because of how they create its products, you can compare it with other one, and maybe you can see that other one can have more revenues, but because it is in other industry too, but if you compare both companies, but just in the same industry, you‘ll see coca cola has more revenues, but that‘s not all about this project. We have audited The Coca-Cola Company‘s internal control over financial reporting as of December 31, 2012 and 2013. The Coca-Cola Company‘s management is responsible for maintaining effective internal control over financial reporting. Coca-Cola is always looking at ways to reduce the resources we use in the method of packaging. At the moment, the raw materials needed to make most plastics come from petroleum and other fossil fuels, and ‗regular‘ plastic bottles are currently made from petroleum. The new Plant Bottle packagingwill move us one step closer to our long-term goal of creating plastic bottles that are truly petroleumfree.

So we can star to Learn about coca-cola financial, environmental, and social Ideals in to take care of the world.

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Grecia Gisela Fidalgo Ponce, 1552214.

I would invest in a company like Coke, recently I went to some seminars of Oswaldo Pecina, and I learned new strategies and business moves, he said that "People do not purchase for quality, buy for a necessity" and "People moves (buys) based on emotions, not logic." So we know that sodas are products that make us wrong in our body, and our brain tells us "do not do not do not drink", but in reality we are not interested, we know that something is bad for our body but we still keeping buying. And then there's something that I've always said.... well my parents have a small seafood restaurant then there are lots of cokes and I used to drink at least 3 per day, habit that I left after a few years, now I have not that feeling to drink it, but I still love her because I have a feeling for coke. Why? Pecina says so in his seminars "People move based on emotions, not logic" So, what makes to us the Coke? Coke makes its photos and advertising based on emotions, touches our heart, since coke started its advertisements are about emotions and make us believe that coca cola is part of the family, that has been always there, or like commercials about Christmas, they touch us. And based on these commercials , our minds changed, and changing , we believe that is a necessity in the time you are going to buy a soda, you do not look at others, because you see the coke as part of " your family "and thus created a new need . And if we stop to think a little, that's how businesses do, like Facebook, that meets our basic needs: security, recognition, connection. With recognition means that when we got a picture and people give us "like" we get excited, and we felt full, and with this I just want to say that everything moves based emotions. And why I said this? Because when that coke gets to the heart of our customers, has the power, and will have the power, because coke knows how to lead their customers, which is why its success, so I would invest in this company because it is a great leader, who knows how, and knowledge is power. This project lets me how l this type of worldwide companies moves, and how its competitors are, and annual sales they make, and its liquidity Because we investigate all matters relating to the finances of coke, and everything is awesome now, all that occurs, and how dominates the market, and as their numbers make clear who is the leader.

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Sonia Giselle Medrano Ortiz, 1649032 This is a very productive project. This Financial project talking about Coca-Cola lets us know the financial position of the company and the evolution of the same during the pass of the years. Elaborating the project was a really good challenge, because it puts in prove our skills obtained during the semester. We had to give an analysis about the data researched, to convince the investors to invest in the company. We could observe that Coca-Cola is a leading company known worldwide and that is a company profitable, which has been established many years ago. This makes Coca-Cola a good company to invest, because it stays steady in the market, and the benefits obtained could be excellent. We can see by giving a clear look to the project, how the company manage their debts, their assets etc. It is crucial to compare Coke with other companies to convince the investor that Coca-Cola is the best company to make is money turnover. The industry of Coke is the beverage industry in this project we compared it with a big competitor Pepsi. And we realize that Coke is a better company to invest than coke. So if I was an investor after analyzing the project I would definitely invest in Coke. Making this project was a really good and interesting experience; it thought me a lot about the world of finance.

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BIBLIOGRAPHY

http://finance.yahoo.com/q/bs?s=ko+balance+sheet&annual

http://www.istockanalyst.com/article/viewarticle/articleid/3831488

http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/FinancialStatement/Income-Statement

http://financials.morningstar.com/incomestatement/is.html?t=KO®ion=usa&culture=en-US&ownerCountry=USA

http://finance.yahoo.com/q/co?s=ko+competitors

http://www.coca-colacompany.com/investors/investors-info-stock-information

http://ir.cokecce.com/phoenix.zhtml?c=117435&p=irol-fundincomea

http://www.coca-colacompany.com/investors/quarterly-earnings-releases

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