For enquiries, please contact Coca-Cola Sabco (Pty) Ltd on: Tel: +27 41 395 4071 .

Fax: +27 41 374 4266. Email: info@ccsabco.co.za For a specific country request, please contact the country representative. Cambodia +855 232428 99 1 1 6 Cambodia +855 1 834 Ethiopia +25 1 1756 114 681 Ethiopia +251 1 1 2 763 Kenya +254 206 998 Kenya +254 20 699 8000000 Mozambique +258 2 1 400 189 Mozambique +258 21 400 189 Namibia +264 613 207 Namibia +264 61 320 7000000 Nepal +997 143 506 Nepal +997 1435 0602 02 South Africa +27 41 395395 4083 South Africa 4083 41 Sri Lanka +94 11 248 7700 700 +94 1.1 2 487 Tanzania +255 22 2700 700 Tanzania 222 700 Uganda +256 288 415 Uganda +256 41 312 365 00 Vietnam +848 896 1000 Vietnam +848 896 1000 Further information can be obtained at www.cocacolasabco.com

Corporate Responsibility Review 2007

CEOs Message CCS Overview Corporate Governance Corporate Responsibility Workplace Marketplace Environment Community 2008 and Beyond
Corporate Responsibility Review 07

01 03 09 11 13 17 21 27 36

COMMITTED TO SUSTAINABILITY

CEOS MESSAGE

a brief overview The Ten Principles of the United Nations Global Compact

We joined the United Nations Global Compact

in 2007 and we are committed to supporting its ten core principles.
Contributing Towards a Better Future for our Communities
Since launching our annual Corporate Responsibility Review in 2005, we have spoken of the journey that we are embarking on together with key stakeholders to ensure that we make a positive contribution to all of our internal and external stakeholders. I am pleased to say that we have continued to make good progress on our sustainability journey. I am proud to announce that we joined the United Nations Global Compact in 2007 and we are committed to supporting its ten core principles. We share the conviction that business practices rooted in these universal principles contribute to a more stable, equitable and inclusive global market and help to build more prosperous and thriving societies. 2007 represented a year of considerable change within Coca-Cola Sabco (Pty) Ltd. We developed what we have termed 'The Created Future (page 04), which sets out some ambitious goals for the organisation to achieve by 2010. I am convinced that, as we achieve these goals, we will see increased contribution to our employees, our shareholders, our value chain partners and, very importantly, our external communities and environments. It is all underwritten by a firm commitment to our role as a responsible corporate citizen. Together with our partner, The Coca-Cola Company, we recognise that, beside it being the right thing to do, focusing on creating sustainable communities in all the territories in which we operate also makes business sense. This principle is vital as it directs our people and our resources towards, not only achieving business goals, but also ensuring that our actions always take into account our community and environmental impact.

The Global Compact's ten principles are derived from:

m

Universal Declaration of Human Rights; International Labour Organization's Declaration on Fundamental Principles and Rights at Work; ? The Rio Declaration on Environment and Development; and ? The United Nations Convention Against Corruption
? The

? The

m
The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core principles in the areas of human rights, labour standards, the environment, and anti-corruption:
m

Human Rights
m

Many of CCS's people work in very trying socio-political environments and I am very proud of the resilience and passion that they show to contribute positively in these environments. We have faced many upheavals and, in each case, I am proud to say that our people have risen to the challenge and made a difference. The aim of the Report is to provide an overview of CCS's activities in the marketplace, workplace, environment and community. The Report, I trust, presents evidence of an organisation that is truly committed to its role as a responsible and caring corporate citizen. I would like to thank Mrs. Dorothea Moors, one of our Shareholders and Non-Executive Board members, who tirelessly contributes to our CR activities as a member of the Group CR Committee. Our other committee member, Adrian Ristow, has recently left the organisation. I thank Adrian for his contribution and passion for Corporate Responsibility. m Stephanus Nothnagel Chief Executive Office

1. Businesses should support and respect the protection of internationally proclaimed human rights 2. and make sure that they are not complicit in human rights abuses. Labour
m

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining, 4. the elimination of all forms of forced and compulsory labour, 5. the effective abolition of child labour, and 6. the elimination of discrimination in respect of employment and occupation. Environment
m

The aim of the Report is to provide an overview of CCS's activities in the marketplace, workplace, environment and community and presents evidence of an organisation that is truly committed to its role as a responsible and caring corporate citizen.

7. Businesses should support a precautionary approach to environmental challenges, 8. undertake initiatives to promote greater environmental responsibility, and 9. encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption
m

10. Businesses should work against corruption in all its forms, including extortion and bribery.
CCS joined the UN Global Compact in 2007. While not addressed specifically under the headings of the ten principles per s, the content of this Report demonstrates CCS's strong commitment to and support of the Global Compact. In our next Review, we aim to reference each principle more specifically.

01

Corporate Responsibility Review 07

** Published by the United Nations Global Compact Office | March 2007

www.unglobalcompact.org

02

CCS OVERVIEW
a brief history
Coca-Cola Sabco (Pty) Ltd (CCS) was founded as SA Bottling Company (Sabco) in 1940. Over the next 50 years, a proud heritage was built and a successful organisation established. After the first democratic elections in South Africa in 1994, the opportunity arose for Sabco to invest beyond South Africa's borders. In 1995, Sabco was appointed an Anchor Bottler of The Coca-Cola Company (TCCC), and Coca-Cola Sabco was born to reflect the new partnership. The major shareholders in this private company remain Gutsche Family Investments and TCCC. The CCS Group is an exclusive bottler of Coca-Cola products. The company has established itself as an emerging and developing market specialist, building a strong track record of success in some challenging markets. The CCS Group, as at 31 December 2007, covered 12 countries as shown in the CCS territory map on page 05. This includes Laos, a site which is still being established. Our primary business is providing ice-cold beverages of the highest quality to over 240 million people who reside in the areas that we service. In recent years, we have also diversified into a related business, described below.

Our Vision
We will be the best Coca-Cola bottler in the world
The best: In sales volume growth; and in returnon-capital employed Coca-Cola bottler: Consumer driven, customerorientated manufacturer, sales and distribution company, which markets the products and brands of TCCC In the world: We measure ourselves against the best Coca-Cola bottlers in the world

Coca-Cola Sabcos Created Future

The Best Way to Predict the Future is to Create it

A bold new set of goals The Created Future 2010 was developed under the leadership of the Executive Committee (EXCO), and shared for the first time at the General Managers Meeting in 2007. The Created Future 2010 is built on the principle that the best way to predict the future is to create it! Aiming to achieve The Created Future is about making Coca-Cola Sabco an even greater company than it already is by reaching very tough, but achievable, goals. The benefits will be many, including the creation of a secure and growing company, career opportunities, and the achievement of incentives/profit sharing. Ultimately, CCS aims to be a better place to work, with more developed, well-rounded employees, filled with personal pride and satisfaction!

Service Companies

Our Values
Integrity: Be honest, open and sincere Individual Initiative: Take pro-active steps to drive performance Customer Value: Exceed customer expectations and add value to customers' businesses Teamwork: Work with and support colleagues to raise overall performance People Development: Realise employee potential through training and development Mutual Trust & Respect: Treat each other with respect and dignity, and earn trust Commitment: Be accountable and do as you say

m
Dataflo, an information systems services company, was formed in January 2002 as a joint venture company between Coca-Cola Sabco and Dimension Data. It is positioned to offer a number of business solutions, such as: installation of ERP systems, shared services from a central location, ? The ongoing maintenance of installed software, and ? The support of IT strategy development.
? Providing ? The

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CCS OVERVIEW
our bottling plants
Nepal Kathmandu Bharatpur Laos Vientiane (coming soon) Vietnam Ho Chi Minh City Da Nang Hanoi

Territories
Namibia
m

Population: 2,04 million GDP per capita (purchasing power parity): US$5 200 Location: Two plants: One in the capital Windhoek; another plant in Oshakati, north-west of the capital Employees: 400 Job creation - multiplier effect: 4 000 Local operating name: Namibia Beverages South Africa
m

OSHAKATI

WINDHOEK

Cambodia Phnom Penh

Sri Lanka Biyagama

Population: 45 million GDP per capita (purchasing power parity): US$10 600 Location: Plants located in Polokwane, Nelspruit, Bloemfontein, Port Shepstone, and in Port Elizabeth Employees: 3 136 Job creation - multiplier effect: 64 600 Local operating name: Coca-Cola Fortune Mozambique
m

POLOKWANE NELSPRUIT BLOEMFONTEIN

m

12 countries 25 bottling plants

m

PORT SHEPSTONE

PORT ELIZABETH

more than 10 000 employees

m

over 240 million consumers

Namibia Windhoek Oshakati

Population: 20 million GDP per capita (purchasing power parity): US$900 Location: Plants in Maputo, Chimoio and Nampula Employees: 1 000 Job creation - multiplier effect: 10 000 Local operating name: Coca-Cola Sabco (Mozambique Sarl) Tanzania
m

NAMPULA

CHIMOIO

MAPUTO

South Africa Polokwane Bloemfontein Port Elizabeth Port Shepstone Nelspruit

Mozambique Maputo Chimoio Nampula

Tanzania Dar-Es-Salaam Mbeya Zanzibar

Kenya Nairobi

Uganda Kampala Mbarara

Ethiopia Addis Ababa Dire Dawa

Population: 37 million GDP per capita (purchasing power parity): US$1 100 Location: Three plants located in Dar-Es-Salaam, Mbeya, and Zanzibar Employees: 1 000 Job creation - multiplier effect: 10 000 Local operating name: Coca-Cola Kwanza

ZANZIBAR DAR-ES-SALAAM MBEYA

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CCS OVERVIEW

Territories
continued
Nepal
m m

Business Update
2007 performance
Population: 27,5 million GDP per capita (purchasing power parity): US$1 100 Location: Plants located in Kathmandu and Bharatpur Employees: 1 000 Job creation - multiplier effect: 10 000 Local operating name: Bottlers Nepal Ltd Laos
m

Coca-Cola Sabco is working on developing appropriate infrastructure in Laos, which will include a new bottling plant in Vientiane.

Kenya Population: 34,7 million GDP per capita (purchasing power parity): US$1 600 Location: Newly commissioned; in Embakasi, Nairobi Employees: 630 Job creation - multiplier effect: 6 300 Local operating name: Nairobi Bottlers Uganda
m

The Coca-Cola Sabco Group was able to demonstrate the following growth in 2007 versus 2006.
BHARATPUR KATHMANDU

NAIROBI

Volume: 10% increase.. Operating Profit: 29% increase..

Population: 28 million GDP per capita (purchasing power parity): US$1 100 Location: Plants located in the country's capital Kampala, and Mbarara in the south part of Uganda Employees: 651 Job creation - multiplier effect: 6 510 Local operating name: Century Bottling Company Ethiopia
m

KAMPALA

MBARARA

Population: 6.2 Million Business Language: English Currency: kip GDP: US$11.28 Billion GDP per capita (purchasing power parity): US$1 900 Coca-Cola Sabco is working on developing appropriate infrastructure in the country, which will include a bottling plant in the countrys capital, Vientiane Vietnam
m

VIENTIANE HANOI

Population: 73 million GDP per capita (purchasing power parity): US$700 Location: Plants located in Addis Ababa and Dire Dawa Employees: 700 Job creation - multiplier effect: 7 000 Local operating name: East Africa Bottling Share Company Sri Lanka
m

DIRE DAWA

ADDIS ABABA

Population: 82 million GDP per capita (purchasing power parity): US$2 600 Location: Plants located in Ho Chi Minh City, Hanoi and Da Nang Employees: 1 182 Job creation - multiplier effect: 11 820 Local operating name: Coca-Cola Beverages Vietnam Cambodia
m

2007 was not just a year of change, but also one where we recovered from a less than satisfactory year in 2006. It is the year that we started seeing good progress in Vietnam, one of our key markets for future growth. It is now our duty to build on the positive momentum as we move forward with confidence.
Extract from CEOs End of Year Message CCS NEWS, Vol.36 No.4 | December 2007

DA NANG

HO CHI MINH CITY

Population: 21 million GDP per capita (purchasing power parity): US$4 100 Location: Bottling plant located in Biyagama,18km north-east of the capital city, Colombo Employees: 430 Job creation - multiplier effect: 4 300 Local operating name: Coca-Cola Beverages Sri Lanka

COLOMBO BIYAGAMA

Population: 13,9 million GDP per capita (purchasing power parity): US$1 800 Location: Located in the capital, Phnom Penh, and has been operational for 13 years Employees: 200 Job creation - multiplier effect: 2 000 Local operating name: Cambodia Beverage Company...

PHNOM PENH

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CORPORATE
Governance at Coca-Cola Sabco

Country Capability (Internal Controls)

m

Country Capability (Internal Controls) A series of critical oversight bodies is in place to ensure that there is effective governance throughout the Group. Well-structured committees, at Country and Group level, oversee audit and finance, remuneration and overall management of CCS. The Audit and Finance Committee operates under the mandate approved by the Board of Directors and meets at least three times a year with Management and its external auditors. The role of the committee has been defined by 10 objectives, including, among others, approving financial policies, assisting directors in the discharge of their duties, reviewing internal audit operations and the annual financial statements, and complying with legislation and other regulatory requirements. The Group Remuneration Committee meets three times a year. Mandated by the Board of Directors, it consists of six directors, five of whom are nonexecutive. A non-executive director chairs the committee and reports to the Board of Directors. It has five stated objectives that help CCS and its shareholders ensure that the directors and staff are fairly rewarded. All directors and employees are expected to espouse the highest moral and ethical principles, values and standards of conduct as set out in the Group Policy Guidelines.

A series of critical oversight bodies is in place to ensure effective governance throughout the Group.
Corporate governance at Coca-Cola Sabco (CCS) remains consistent, with a governance framework in place to ensure that the high standards of our policies are continually adhered to. One policy that CCS is fully committed to is that of open corporate governance. Open corporate governance provides our shareholders and other stakeholders with the assurance that our Company is managed ethically and in compliance with best local and international governance practices. In this way, our corporate governance framework adds further value and protects our Company's financial assets and human investments. Our governance framework, which helps us to manage and report on the important aspects of our business, consists of six pillars and operates at Country, Division and Group levels.

The Board of Directors acknowledges its responsibility for the systems of internal control. The Group maintains the systems designed to provide reasonable assurance of the integrity and reliability of the financial statements and to adequately safeguard and maintain accountability for the assets. A variety of controls exists at Country level in order to ensure that our country operations can be optimised. These controls are reviewed and reported on regularly in order to ensure that the Company is cognisant of any changes or risks within our business.

CCSS SIX PILLARS OF CORPORATE GOVERNANCE

Internal Audit

Corporate Governance Framework

Internal Audit
m

Authorisation Framework

An internal audit is an independent function within the Group structure that monitors the system of internal controls at a Country and Group level to ensure that it operates as designed. The internal audit reports identified weaknesses to the Country and Group Audit Committee three times a year.

Authorisation Framework
m

Governance Routines

The Group has established comprehensive management reporting disciplines, which include the preparation of annual budgets by all operating units. Monthly results and profit forecasts are reviewed, as well as working capital and capital expenditure levels. The Group operates within an approved Chart of Authority, which is managed and monitored throughout the operations.

Business Risk Review

m

Business Risk Review

Governance Routines
m

The Board of Directors sets the strategic objectives of the Group and is responsible for the monitoring of the financial performance of the operating units and the Group. The Coca-Cola Sabco Board of Directors consists of three executive and seven non-executive directors. They meet at least three times a year. Each subsidiary has a formally constituted Board of Directors who meets at least twice a year.

There is a regular review of CCS's strategic and operational risks. Risk management is integrated into the daily operations and is not a periodic or stand-alone intervention.

Statutory Compliance
m

Statutory Compliance

The Group requires compliance of all its operations at the legal, governance and legislative levels. This is managed at a Country level, with Group support, as required. ,

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CORPORATE RESPONSIBILITY
our approach
At Coca-Cola Sabco (CCS), we view sustainability, broadly, as the effective and responsible stewardship of all the resources that we currently utilise and those that we will utilise in the future. Our ultimate goal is to ensure that our presence leads to an improvement in the lives of the communities in which we operate. We also actively engage with key stakeholders in the decision-making process related to our community and environmental initiatives. We believe that a sustainable business should result in a sustainable community. The reality is that much of CCS's territory is characterised by high levels of poverty. The impact of this is that much of our stakeholder engagement revolves around discussions of how we, as an organisation, can assist those working to alleviate poverty. That is one of our key motives in joining the UN Global Compact. In line with our commitment to the UN Global Compact, we aim to ensure that the ten principles become a more integral part of our management, strategy and day-to-day operations. We continue to work towards clear milestones for sustainable stewardship of all of our resources. Our Corporate Responsibility framework remains the same, being fully aligned with The Coca-Cola Company. We strive to achieve sustainability goals in the:
?

WORKPLACE
A workplace that grows people
Our commitment is to foster an open and inclusive environment based on recognised workplace human rights, where a highly motivated, productive and committed workforce drives business success through superior execution. This commitment is backed up by clear policies, processes and actions, as we truly believe in our people as our most important resource.

MARKETPLACE
A marketplace positioned for growth
Our commitment is to provide products and services that meet the beverage needs of our consumers. In doing this, we provide sound and rewarding business opportunities and benefits for customers, suppliers, distributors, and the local community. In doing this, we have developed key policies to govern our marketplace activities. At present, our focus is in the domain of enterprise development through MDCs*.
*See page 17

We believe that a sustainable business should result in a sustainable community.

ENVIRONMENT
Continuous improvement
Our commitment is to conduct our business in ways that protect and preserve the environment, and to integrate principles of environmental stewardship and sustainable development into our business decisions and processes. This involves our actions both in terms of the use of resources within the organisation, as well as contributing appropriately in the external environments surrounding our operations.

COMMUNITY
Growing together
Our commitment is to invest time, expertise and resources to provide economic opportunity, improve the quality of life, and foster goodwill in communities through locally relevant initiatives. We have a clear policy and guidelines for community investment to ensure focus and effectiveness.

Workplace

? Marketplace ? Environment ? Community

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WORKPLACE
Committed to creating a working environment where all employees are excited about their jobs.
Coca-Cola Sabco is committed to creating a vibrant working environment where all employees are passionate and excited about their jobs. In support of this commitment, an Employee Engagement survey has been launched; firstly, to understand the current engagement reality and, secondly, to focus our Employee Engagement improvement actions. The survey will be conducted annually, providing employees with an opportunity to voice their views and suggestions. The Executive Committee team will remain hands-on and will work closely with Division and Country teams in their efforts to improve and sustain engagement. Ethiopia provided a sterling example of prioritising workplace as a platform for improvement on all levels when the East African Bottling Share Company (EABSC) and The Coca-Cola Company pioneered the way in the fight against HIV/AIDS with their HIV/AIDS Workplace Programme, which is one of the first of its kind in Ethiopia. This Programme was launched in 2003 for the benefit of employees and their families. The Programme covers voluntary counselling and testing (VCT), anti-retroviral (ARV) drug provision and administration, as well as much-needed health education. Currently, 401 out of 710 employees have gone for VCT, and 22 employees are taking ARVs. I am the Values Everest Challenge, which encourages employee teams to demonstrate living the core values within the larger communities, was once again a great success. The Coca-Cola Beverages Sri Lanka Ratugala Village School Building Project was the winner of the 2007 Everest Challenge. Read the full article on page 16. In reference to the Everest Challenge, it is encouraging to know that one of the 2006 winners is still going strong. Wings & Wishes was established in 2006 after a group of employees from Coca-Cola Sabco developed the innovative idea of donating their frequent flyer miles as part of an internal Corporate Social Responsibility initiative. See more about this initiative on page 34. The Talent Management approach, which is to engage, build, leverage and retain employees, supports the strongly held conviction that people are the key to performance. On the CCS journey towards achieving its business objectives, managing a robust and efficient talent pipeline will be imperative for success. The Talent Development Committee structures and routinely drives this pipeline.

CCS Workplace
continued
It provides the overall succession picture, highlighting critical attraction, development and retention requirements and opportunities. Learning and development remains a key business driver. In 2007, CCS invested more than US $3million on developing its people. The Created Future 2010 business targets further set out to significantly increase the investment in quality learning and development. In addition to building functional bench strength across the value chain, management and leadership development at all levels is imperative. Every employee is committed to at least three improvement actions every year, which, in turn, supports leveraging strengths as well as areas requiring development. The strong learning and development community consists of training managers and trainers spread widely across the Group. This virtual community is able to support on-the-ground training and to activate new learnings and programmes quickly as the business model adapts to market changes. Key focus areas are in frontline sales and in the supply chain area, specifically in planned maintenance and quality. Coca-Cola Sabco is widely recognised for its highly effective Management Talent Development programmes and Executive Development programmes, and many of the alumni of the programmes are now working in senior management positions within the organisation. Coca-Cola Sabco is represented in a global community across Africa and Asia. Once a year, highpotential managers who have recently joined the organisation are Sabconised through an intensive Inside Track orientation programme. The ROI on this programme has been more than encouraging and many 'best practices' have emerged from graduates on the programme. Focused individual development discussion is an integral part of the Performance Management Process (PeoplePlan) at Coca-Cola Sabco. The overall objective of PeoplePlan is to align and improve both company and individual performance as well as to motivate, develop and release staff potential. PeoplePlan plays a fundamental role in translating the broad business strategies into smaller, actionable objectives that employees can own and deliver. On an ongoing basis, managers are reminded that Performance Management is primarily about the process of facilitating frank conversations between managers and team members. The focus should always be on two-way information-sharing. Major focus areas are currently to up-skill managers and to create a strong mentorship and coaching culture in the company.

Our commitment is to foster an open and inclusive environment based on recognised workplace human rights, where a highly motivated andproductive workforce drives business success though superior execution.

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believes Coca-ColaofSabcomost that one the fundamental rights of the employees is the right to a safe and healthy workplace.
CCS Workplace
continued
m

WORKPLACE
Selected Workplace Initiatives
All the World's a Stage - AIDS Awareness Through Theatre

Everest Challenge
m

Both development and compensation clearly contribute to employee attraction and engagement. Annually, CCS benchmarks compensation against comparable companies to ensure competitiveness and relevance. Coca-Cola Sabco believes that one of the most fundamental rights of the employees is the right to a safe and healthy workplace. Coca-Cola Sabco Management is committed to the well-being of employees and recognises that employees in some of the countries in which we operate could be exposed to dreaded diseases such as HIV/AIDS. The Health and Wellness Policy highlights the importance of education, counselling and medical support provided by the Company in conjunction with the greater medical fraternities in the various countries. CCS supports the Global Coca-Cola Workplace Rights Policy and is committed to fostering open and inclusive workplaces that are based on recognised workplace human rights where all employees are valued and inspired to be the best they can be!

Mozambique

Coca-Cola Mozambique has introduced a unique tool to its HIV/AIDS Programme that of theatre and drama! A theatre/drama group was created, consisting of employees at all three plants (Maputo, Nampula, and Chimoio). It has proven a huge success, with condom distribution increasing significantly, and the number of sexually transmitted diseases decreasing. The country and region teams took up the idea, and worked for several months to create their own HIV message. One colleague chose life, one chose death this is the poignant line that ends the successful theatre play, which was performed to more than 300 employees and invited guests at both the Machava plant and Distribuidora Offices. Theatre instructor, Ms. Colleen Fletcher, trained all managers during a three day training course, which included stage techniques and voice projection. The Country Management Team (CMT) developed the play and the story line. The play portrayed the management team and the various members' reactions when two members of the team are consistently late for meetings, both being HIV positive. Mr Arlindo, played by Country Manager, Saider Sibanda, discloses his status as HIV positive, and gets support and counselling from all members of the management team. The other, Mr Bernardo, played by DC Country Manager Kenneth Kamulegeya, remains in denial, and dies from the dreaded disease. Leading the way in other realms when it comes to HIV/AIDS awareness, CCS is the first company in Mozambique to offer female condoms to employees in a campaign that was initiated by HIV/AIDS peer educators. Additionally, CCS Mozambique has published its own educational HIV/AIDS booklet.

The Everest Challenge was launched in 2005 to give teams at CCS the opportunity to demonstrate the company values in action. The challenge now focuses exclusively on external communities.
Everest Challenge Winner

EVEREST CHALLENGE
Sri Lanka | Dawn of a New Day
The Coca-Cola Sri Lanka Sales Team implemented the Dawn of a New Day initiative in 2007 to ensure sustainable education for the indigenous community of Ratugala in Sri Lanka. The objective of the project was to improve the quality of life for the Ratugala indigenous community, which is made up of 65 families who live in a village bordering Bibile, 374 km from Colombo. This initiative involved constructing a school building and teachers' quarters for the community, whilst giving the families an incentive to send their children to school by giving all the children breakfast at the new establishment. What stands out about Dawn of a New Day is that it is sustainable, self-funded and a team effort. Project Leader and Regional Sales Manager of Coca-Cola Sri Lanka, Mr. Nalinda Jayamanne, commented; We were inspired to take this initiative on through a television report done by Sirasa TV's Vimarshanaya on the impoverished state of the Ratugala indigenous community. Through subsequent research, we found that the community was in dire need of a school building as the closest school was over 10 km away. The project team worked very closely with the Ratugala community, with much support from the Ministry of Education. The project cost of US$10 000 was self-generated through a series of activities, which included musical shows, car washes, and the screening of key World Cup Cricket matches. Overcoming challenges, such as working in the thick jungle, the Coca-Cola team completed construction two weeks ahead of the three-month deadline. The school, together with a donation of food and books by the Government of Sri Lanka, was handed over at a ceremony. In the long-term, this project will be sustained through the Government's support as well as by further development efforts by Coca-Cola Sri Lanka's Sales Team. Plans are already underway to further develop the community's agricultural capabilities by repairing a nearby culvert, thereby enhancing their main source of income. The Coca-Cola Sri Lanka Sales Team were announced as the deserved winners of the 2007 Everest Challenge.

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MARKETPLACE
Manual Centres Distribution (MDCs) continue
African territories
Number of MDCs Number of direct employees Revenue generated Estimated support base
2,000

CCS Marketplace
continued
The updated impact of the MDC model is presented in the table below:

Asian territories
1,400

Total
3,400

to create jobs and spread wealth.

Many independent studies point to the wide reach of Coca-Cola products throughout the world. In CCS territories, we are often amazed at some of the places in which our products are consumed. However, we also recognise that this wide reach brings with it a great responsibility, as well as a great opportunity to contribute to society. We recognise the multifaceted nature of the interdependency between our markets and our business. Central to our past and future business success has been an uncompromising commitment to providing products of the highest quality at all times. We also recognise that these products should anticipate and meet the needs of our consumers. Our partnerships with our customers represent one of the most critical success factors for our business. We are committed to producing, marketing, distributing and selling our products in a responsible and innovative manner. Our beverages are produced at 25 plants in Africa and Asia. We employ over 10 000 people. The vast majority of our employees are recruited from local communities. Manual Distribution Centres (MDCs) continue to create jobs and spread wealth. The greatest and most sustainable contribution that any company can make to development is through carrying out its core business activities in a productive, profitable and responsible manner, building business linkages and creating other economic multipliers in host countries and communities. Jane Nelson, 2007 (Kennedy

School of Government, Harvard).* Extract from 'Building

Linkages for Competitive and Responsible Entrepreneurship: Innovative partnerships to foster small enterprise, promote economic growth and reduce poverty in developing countries'. The continued progress in the rollout of MDCs across the CCS Group has been covered in the last two editions. Jane Nelson's quotation captures the importance of this component of CCS's role as a responsible corporate citizen. During the course of 2007, the MDC Model was featured in the Economic Opportunity Series of the Kennedy School of Government (in association with FSG Social Impact Advisors) as an example of how the food and beverage industry is expanding economic opportunity.** From an economic development point of view, one of the most exciting aspects of the MDC model is that it is providing opportunity for life improvement for many individuals who previously survived on an income of less than two US dollars per day. It is a model that makes business sense and benefits the community.
* www.hks.harvard.edu/m-rcbg/CSRI/publications/report_8_UNIDO_final.pdf ** www.hks.harvard.edu/m-rcbg/CSRI/publications/report_20_EO%20Food%
20&%20Beverage%20Final.pdf

8,300 Over US$ 500 m 38,700 people

Uganda, Tanzania, Kenya, Mozambique, Namibia, Ethiopia

2,850 Over US$ 100 m 17,400 people

Sri Lanka, Nepal, Cambodia, Vietnam

11,150 Over US$ 600 m Over 56,100 people

Our commitment is to provide products and services that meet the beverage needs of our consumers. In doing this, we provide sound and rewarding business opportunities and benefits for customers, suppliers, distributors, and the local community. In so doing, we have developed key policies to govern our marketplace activities.

Note: new MDCs are developed on an ongoing basis, so these figures reflect the closest numbers as at end 2007
m

Due to the fact that it is a critical component of CCS's core distribution model, the probability of success for the MDC owners and their staff is directly linked to CCS's growth, making it a sustainable model. In the countries where the MDC model has been implemented MDCs account for 51 percent to 98 percent of the total sales. The organisation sees the MDCs as an extension of the business itself and as such provides many additional benefits to the MDC owners and their employees. This has included access to HIV/AIDS awareness programmes, and business and selling skills training. In Ethiopia for example, East African Bottling Share Company (EABSC) became the first organisation to invite the Traffic Police Department to train their pushcart and MDC operators on ways to address the increasing traffic congestion and road accident problems in Addis Ababa. 447 people participated in the training which directly supported this important objective of the Traffic Department. While the business model is now firmly entrenched, CCS is working with TCCC and NGO partners in investigating and implementing ways to increase the socio-economic impact of the system.

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CCS Marketplace
continued

Creating local economic benefits

? Committed to ensuring that there is mutual benefit for the communities and economies in which we operate ? Beverages are produced at 25 plants in Africa and Asia ? vast majority of our 10 000 plus employees are local people The ? plants represent investments worth hundreds of millions The of dollars in facilities, marketing and purchases from suppliers ? Other contributions to local economies include taxes and the sale of our products through various types and sizes of distributors and retailers

The Coca-Cola in Kenya raised aSystem total of US$55 000 for orphanages countrywide.
Coca-Cola Promotion Helps Street Children
Nairobi Bottlers Ltd (NBL), Kenya, presented a cheque for US$3 885 and Coca-Cola soft drinks to the Street Children Association of Nakuru. The money was raised through the Buy One-Help One nationwide Coke promotion held in November and December 2006. The orphanage supports more than 150 street children from Nakuru, Kenya's third largest town, which lies 150 km North of Nairobi. Two other homes in NBL's territory in Nairobi - Embakasi and Machakos - benefited from equal amounts of cash donations. The Coca-Cola System in Kenya raised a total of US$ 55 000 for orphanages countrywide.

Supporting our customers

range from large, international retail and restaurant chains to small local businesses. ?Regardless of their scope and size, we remain committed to adding value to our customers businesses. ?We also perform audits and monitor performance data to help ensure a high service standard. ?One of our core values is to strive towards exceeding our customers' expectations and adding value to their businesses.
?Customers

Kenya

? We

...mutual benefit for the communities and economies

JOB CREATION

Vietnam | Pushcart Programme

With 12% unemployment and women accounting for over half of the total work force in Vietnam, one of the biggest combatants against poverty is job creation. Since 2002, Coca-Cola Beverages Vietnam (CCBV), together with the National Women's Union and the Coca-Cola Company, has been working with disadvantaged women to create jobs through the Coca-Cola Pushcart Programme. Female pushcart operators are identified by our partners and receive training by our Sales team as well as discounted beverages to help them to get their small mobile businesses up and running. Each year, in addition to the core activity of job creation, the Programme also supports other activities that improve the quality of life for these women and their families. It also demonstrates our commitment to fighting poverty in Vietnam, added to granting scholarships to operators' children, donating low-cost housing (Mercy Houses) to operators and their families, donating free meals and gifts during key festivals, as well as providing basic business training and a micro-credit scheme. The Coca-Cola System has contributed more than US$10 000 to this project, which has aided 3 095 women pushcart operators and their families.

...exceeding our customers expectations

Partnering with our suppliers

work with suppliers who share similar values and demonstrate a commitment to the highest standards of quality, integrity and excellence, compliance with the law, respect for the customs and the cultures of communities, and employees ? far as possible, we support local suppliers, As although this is largely governed by the high quality requirements of our global system

Serving our consumers

are comitted to meeting consumers' changing needs and lifestyles ? this regards, wherever possible, we provide In a wide portfolio of beverages to suit different needs and requirements ? Consumers are at the heart of everything we do
? We

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Corporate Responsibility Review 07

...we support local suppliers as far as possible

...a wide portfolio of beverage options wherever possible

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ENVIRONMENT
is a critical focus There operations on by all water management.
Coca-Cola Sabco is committed to implementing The Coca-Cola Management System (TCCMS), an integrated Business System driving the management of SHEQ (Safety, Health, Environmental, Quality). The Management System involves the activities of all stakeholders including suppliers, manufacturers, distributors, customers and consumers. The TCCMS includes all elements of ISO 9001, ISO 14001 and OHSAS 18001. Therefore, once a facility is certified in TCCMS (SHEQ), it means that the facility complies with all elements of ISO 9001, ISO 14001 and OHSAS 18001 and is fully compliant to all local legislation. All operations are currently in the process of implementing TCCMS. The CCS Group has five fully certified operations (Kampala, Mbarara, Bloemfontein, Polokwane and Nairobi) in TCCMS (SHEQ). Intensive Capability Building (externally- and internallyfacilitated) of employees in each country has proven to be the key for driving effective implementation and sustainability of world-class standards and performance levels.
m

Water Stewardship
continued
m

Managing the water-usage ratio in emerging and developing markets presents many additional challenges that are not faced by developed markets and this unfortunately impacts our improvement progress. It must be noted that the growth of Coca-Cola Sabco into new territories over the years has often resulted in the acquisition of plants with less efficient water management programmes than the Group's standards require. As a result, in some years (e.g. 2004), the Group average was negatively affected. But, as demonstrated by the positive trend, CCS remains committed to reduce its water usage ratio aggressively, despite the additional challenges faced in these markets.

Water Stewardship
m

There is a critical focus by all operations on Water Management. This includes water-use reduction, protection of water sources and watersheds, recycling initiatives, wastewater management, supply economics, and social impact. With the use of water balance tables, each operation can effectively monitor and manage areas of use and, hence, initiate reduction programmes. All countries have initiated projects to assist with wateruse reduction, and these include more effective methods for monitoring (Mozambique, Uganda, Sri Lanka, Ethiopia), re-use and recycling for auxiliary activities (South Africa, Vietnam, Kenya, Namibia), and upgrading of equipment and process technology to reduce usage (South Africa, Vietnam, Tanzania, Cambodia).
m

Graph 1.1 The water-usage ratio showed steady improvement from 2001 to 2003. In 2004,additional operations were acquired in Asia. These had less efficient water management systems in place, which increased the ratio by 5,7%.

water use ratio L/L Bev

The trend analysis is used to drive improvements in these three areas of focus:

Coca-Cola Sabco remains committed to reduce its water usage ratio aggressively.

5.6%

17.5%

Our commitment is to conduct our business in ways that protect and preserve the environment, and to integrate principles of environmental stewardship and sustainable development into our business decisions and processes.
2001 2002 2003 2004 2005 2006 2007

m
m

Energy
There have been significant strides made in the CCS Group to improve energy usage. Since energy usage includes fuel usage and electricity usage, it is important that actions are in place for use-reduction across the value chain to include activities of distribution, manufacturing, in-trade, etc. All operations have initiated projects to address various aspects of usage, and this includes process optimisation to reduce energy usage and routes to market fuel usage. Vietnam's project, which won the CCS Group Award in 2007, is a prime example of the type of focus given to the reduction of energy usage. This project commenced with an installation of equipment to save on energy usage, which proved to save on energy usage and reduce water usage.
m

All operations currently measure: ! Water-use ratio ! Energy-use ratio ! Solid waste generation and recycling These performance measurements are communicated to TCCC on a monthly basis.
Corporate Responsibility Review 07

All of these initiatives have proven to reduce the wateruse ratio of the CCS Group over the past few years.

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ENVIRONMENT
External Environmental Initiatives
Committed to a Better Environment

The recycling rates in the countries are continually

improving, with SA now at a 94% recycling rate.
Solid Waste
m

Partnering Together for Conservation

Mozambique

Nepal

The Coca-Cola Company (TCCC) has its finger on the pulse of Africa's environmental needs. As a collaboration between the World Wildlife Fund (WWF) and Coca-Cola System Partnership, an East Africa Planning Workshop was held in July 2007. Other participants of the workshop included SABCO, SOBO, and the Manda Wilderness Project. The Manda Wilderness Project is a multi-dimensional effort to protect and preserve 119,000 hectares of land in Northern Mozambique that includes three main components, namely promoting responsible tourism, environmental protection, and the protection of the conservation area. The workshop was held at the Manda Nkwichi Lodge on Lake Malawi/Nyasa/Niassa to enable participants to develop a first hand understanding of the WWF/Coca-Cola System East Africa partnership project context and objectives together. The Manda Nkwichi Lodge is located close to the centre of the proposed project area. Peter Bechtel, WWF Northern Mozambique Coordinator, explained that the proposed WWF/Coca-Cola System Project would build on the foundation of existing conservation activities such as the Manda Nkwichi project and the USAID-funded WWF project to protect and preserve the unique eco-systems of East Africa.

Bottlers Nepal (BNL) Ltd has entered into an agreement with Kathmandu Metropolitan City to maintain eight traffic islands close to its plant in Balaju and Tinkune. The islands were abandoned and in a very poor state. BNL have committed to maintaining them for two years as a Corporate Responsibility project. The purpose behind this CR Project is to beautify the environment around the BNL plant. One of the busiest islands at Balaju Chakrapath, which is a stone's throw from the Coca-Cola plant, is being Coke-branded and displays Coca-Cola billboards to convey to the community that the Coca-Cola Company is committed to preserving local amenities.

Recycling initiatives have increased in all countries, and now include many stakeholders, particularly the local communities and external vendors. Some external vendors in South Africa recycle the PET waste into stationery (e.g. rulers), which is then distributed to schools. Although some countries do not have external vendors in place for solid waste reduction, the operations are working to set communities up to drive these initiatives. The recycling rates in the countries are continually improving, with South Africa now at a 94% recycling rate. Sri Lanka has improved to 60% in 2007 from 5% in 2003. The CCS Group is striving to attain a 100% recycling rate. Operations are very involved with solid waste generation reduction, and this includes working with our suppliers regarding the types of packaging used for raw materials, so that re-use or recycling of these can be carried out either by the supplier or the operation. These actions are now entrenched in the Supply Chain activities.

WATER ACCESS

Vietnam | Clean Water For All

Although water is abundant in many parts of Vietnam, supply is not evenly distributed and water is often polluted by poor environmental conditions. According to the UNDP (United Nations Development Programme), 30% of the population still lacks access to clean water today. In partnership with the People's Committee and the Department of Natural Resources & Environment (DoNRE), Coca-Cola Beverages Vietnam (CCBV), together with the Coca-Cola Company, launched the Clean Water for Communities programme in December 2006 to increase and improve water accessibility in water-scarce communities around the bottling plants. They were given an initial programme grant of $50 000. In June 2007, an evaluation was completed on the pilot of this programme in Thu Duc and, by the end of 2007, this programme was also launched in two other plant locations in Vietnam, Ha Tay (Nth) and Da Nang (Central), together with the local People's Committee and DoNRE. Activities completed in January 2007 included the laying of water pipes to deliver clean water to 80 disadvantaged households in Binh Chieu ward, Thu Duc, and providing a well and water filter system to Dang Thi Ranh school in Hiep Binh Phuoc ward, Thu Duc, where more than 94 per cent of households cannot access clean water. As a result of this programme, 1 307 community members receive access to clean water.

Preserving a Valuable Resource

Kenya

The Group agreed that part of the Partnership's focus should be on supporting the livelihoods of those affected and impacted by regional eco-systems........

Group members identified a number of environmental and social issues that have a direct bearing on local livelihoods, including community-based tourism. TCCC and CCS could help support this effort by linking stakeholders with potential sources of project funding.

Nairobi Bottlers Limited (NBL) and Kenya Airways, together with their associates and partners, participated in the planting of 30 000 trees at Ngong Forest in a bid to preserve the forest in the city's water catchment area 25km outside Nairobi. The occasion was attended by the Hon. Kivutha Kibwana, EGH, MP (Minister of Environment and Natural Resources, Kenya).

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Through this integrated project, CCK aims to see the development and improvement of water supply systems, hygiene education, and sanitation facilities.

ENVIRONMENT
External Environmental Initiatives
Community Watershed Partnership Programme

Company is Century Bottling enable the determined to

Tanzania

people of Northern Uganda to have access to safe and clean water.

Coca-Cola Kwanza (CCK) has undertaken a project that supports Tanzania's new water governance strategy. The Community Watershed Partnership Programme strives to improve community access to sustainable, safe water, provide sanitation services to local communities in need, and promote sustainable management of watershed and water resources in the country's two most important basins the Wami-Ruvu and Pangani River Basins. The project will build on existing programmes and projects of the USAID (United States Agency for International Development) Mission in Tanzania and the International Union of the Conservation of Nature in both of these river basins. Through this integrated project, CCK aims to see the development and improvement of water supply systems, hygiene education, and sanitation facilities in nine wards within five districts in the two river basins. Another planned outcome is the strengthening of village water committees, as well as the local ownership and management of water supply and sanitation services. Also a priority is the identification and prioritisation of threats to biodiversity in the two river basins. CCK would like to see the identification of best practices in agro-industrial water use and wastewater discharge that improve water flow and quality and reduce business operating costs. Other important outcomes of this project include, amongst others, the production of geomorphologic profile zones of the Wami and Pangani Rivers, including surface catchments maps, and the determination of current and projected water available for allocation to human users and for ecosystem maintenance in the Wami River Basin.

WATER ACCESS
Uganda | Fit to Drink
The Northern Uganda Water Springs Initiative is part of a global alliance between The Coca-Cola Company (TCCC) and the United States Agency for International Development (USAID).
The objectives of this alliance are to promote sound water resource management and sustainable service delivery in countries where both partners operate. This water initiative will offer Ugandans an opportunity to benefit from the global alliance between TCCC and USAID. The project in Uganda was launched in Kampala at the beginning of 2007, with numerous dignitaries attending this high-profile event. Century Bottling Company is determined to enable the people of Northern Uganda to have access to safe and clean water, and hopes to achieve that goal in Dokolo, Lira and Amuria by the conclusion of the Water Springs programme. There has also arisen an urgent need to create access to a constant, reliable water supply, and to enhance the protection of the environment for women, children and other vulnerable community members, who are recovering from years of displacement.
*Image (above): The partnership among TCCC, USAID, CBC and COOPI
after unveiling the plaque.

26

CBC has committed to working with local partners - USAID Uganda, Christian Children's Fund (CCF) and Cooperazione Internationale (COOPI) - in managing this project as successfully as possible. CBC has also committed to participate actively in the various aspects of this programme, especially community awareness activities and public awareness campaigns. The Employees Volunteer Programme allows CBC employees to make a valuable contribution. Working with and training Water Committees and the local leaders will lend CBC the necessary momentum to generate buy-in and full ownership, as well as to generate self-sustaining water management skills for the future of that region.

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COMMUNITY
CCS believes that most sustainable projectsthe those are where a clear link can be created through matching our unique capabilities with a community need.

Emmanuel Haven

Health | HIV/AIDS

Apart from the external environmental initiatives, which have been covered in a separate section of this Report, the two main focus areas for CCS's community work include Healthcare (with a focus on HIV/AIDS) and Education. However, the organisation also understands that each community may require assistance for some other high priority needs. This could include, for example, the fight against malaria in many CCS territories. Additionally, many CCS territories are prone to natural disasters, and the organisation always joins forces with the local authorities and communities to assist if any unfortunate event takes place. The focus on building sustainable communities cannot be over-emphasised and it is this philosophy that is increasingly driving decisions around community projects supported by the organisation. CCS also realises that effective engagement with key community stakeholders is a vital component of its community work to ensure that it is embarking on projects that are priority needs in that particular community. The organisation believes that the most sustainable projects are those where a clear link can be created through matching the unique capability of the organisation with a community need. The key question to be considered is, 'within its broad core focus areas, what community need is Coca-Cola Sabco uniquely positioned to support?' If this philosophy is adopted, the support can go beyond simple financial contribution to a project to true partnership. This philosophy is currently being entrenched in the organisation so as to move away from ad hoc support towards partnership support to assist in creating sustainable communities.

CCS adopts a decentralised model within a broad Group Corporate Responsibility Policy in terms of community initiative selection. Each territory chooses the community project or activity that they typically support, but are called upon to justify this selection within the Group Policy and Governance Processes. Additionally, the Group Policy requires each operation to invest the equivalent of at least one percent of its operating profit in community projects. The intention of this section is to provide examples of projects from each community focus area, including some disaster relief efforts. We embark on large scale as well as fairly small projects, because both ends of the spectrum are important, as it is vital to maintain the human component in each project. The true heroes are the people behind those community organisations who work tirelessly and devote their lives to making other people's lives better, and we salute them.

Emmanuel Haven, a response to HIV and AIDS in Motherwell (a township in Port Elizabeth), has grown in leaps and bounds over the past year since its inception, and, with the help of The Coca-Cola Africa Foundation (TCCAF), is closer to its goal of an HIV/AIDS-free community. The Haven is made up of an HIV and AIDS Research Unit, Emmanuel Haven Farms, a Day Care Centre, and VCT and ARV Units, amongst others. The purpose of Emmanuel Haven Farms, other than providing employment, is to generate funding for the main HIV and AIDS cluster. This is a high-tech greenhouse operation producing cucumbers and tomatoes, and an open field commercial operation producing lettuce. Families of those with HIV/AIDS, as well as the youth in Motherwell, find employment here. Over the past year, the farm has reached production levels of picking up to 30,000 cucumbers and 6 tons of tomatoes per week, generating a net income of US$2 125 to US$2 830 per month to support the Wellness Centre - this pays the salaries of the driver, matrons and nurses. This multifaceted approach addresses both the causes of HIV/AIDS and the poverty that results, providing employment and strengthening the community. The generous sponsorship of US$100 000 by TCCAF made it possible to complete phase 2 of the Siyalinga building project. This had a ripple effect and provided an opportunity for Emmanuel Haven to commence the planning and implementation of phase three of the project. This includes the roll-out of its Step-Down Centre, community radio station, and family tunnels. In December 2007, Emmanuel Haven was the recipient of the World Leadership Award in the Health Sector for being the best NGO out of 400 entries from all over the world. In line with the Group Office's goal of supporting a best practice project, Mrs. Dorothea Moors (Shareholder and Non-Executive Director), and Adrian Ristow (Group Public Affairs and Communications Manager) have played an active role in supporting the project.....
*Image (above): Dr Mamisa Chabula of Emmanuel Haven; South African Deputy President Pumzile Mlambo- Ngcuka; and
William Asiko, President of The Coca-Cola Africa Foundation (TCCAF) at the launch of Emmanuel Haven phase 2.

Our commitment is to invest time, expertise and resources to provide economic opportunity, improve the quality of life, and foster goodwill in communities through locally relevant initiatives. We have a clear policy and guidelines for community investment.

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COMMUNITY
Health | continued
Health | HIV/AIDS Looking Out for Orphans and Vulnerable Children

Mpumalanga - South Africa

Health | General Reaching Out to Make a Difference

Eastern Region - South Africa

The SA Mpumalanga region is finding practical touch-points to help brighten the lives of orphaned and vulnerable children (OVC) who have been directly affected by HIV/AIDS in their area. Three child-headed families have been identified for the project, and are being given extra-special treatment by the SA Mpumalanga region peer educators. The objective of the project is to create in orphaned children a sense of love and belonging - an objective which has been achieved successfully. In a recent visit, the children were fetched at school by the peer educators, who presented them with special packs sponsored by Coca-Cola that included items like face cloths, toothpaste and soap. Emotions were overwhelming, and the peer educators were rewarded just as much, if not more, than the children. Coca-Cola Fortune is continuing support by paying the school fees of the identified children, and by procuring food according to the fill a bag, feed a family concept. A similar project is currently in progress where the employees of the South African Mpumalanga region have nominated five needy families from their own communities. The aim of this project is to involve employees to adopt a family and - with company assistance - provide emotional and physical support to these families, many of which are also affected by HIV/AIDS.

The Womens Forum Committee (WFC) at Coca-Cola Fortunes Eastern Region, jointly spearheaded by Lindi Olivier (ME) and Ilse van Dyk (HR), assisted in the opening of the new Qunabout Community Centre for the Association for the Physically Challenged. These two women, as well as Elise Grobler (DF) and Samantha Redinger (DF), attended the opening on December 24, 2006. Local speakers addressed the launch audience, which was made up of the local Minister of Health, as well as many physically challenged persons, amongst others. This was an opportunity for the WFC to present the Centre with two toddler wheelchairs, modified and branded with Coke Side of Life graphics, which were handed over to two orphans. The children are in the care of a local orphanage for the physically challenged....

Health | General CBC Brings Hope to Improverished Patients

Uganda

Health | General Fighting Malaria

Tanzania

Malaria statistics in Tanzania are sobering the country has a population of nearly 40 million people, out of which 16 million cases of malaria arise each year. These cases result in approximately 80 000 deaths of children under the age of five each year. Economic losses due to malaria in Tanzania amount to approximately 3.4 percent of the countrys gross domestic product every year. Malaria prevention is clearly a major need in Tanzania, and Coca-Cola Kwanza (CCK) is rising to the challenge as they join the fight to prevent this disease. CCKs Buy One, Help One campaign raises funds to buy treated mosquito nets, which are distributed to maternity wards and orphanages. More than 10 000 nets have been donated thus far. CCK has also embarked on the NetsforLife malaria campaign with Standard Charter Bank. This campaign, which was launched in June 2007, focuses on the distribution of long-lasting treated mosquito nets....

Century Bottling Company (CBC) in Uganda has made its mark at the Hope Ward a charity ward at the International Hospital Kampala (IHK) which was established to provide complex medical care for Ugandas needy, free of charge. These patients would otherwise have no place to go for specialist medical treatment. Now, victims of road accidents, war, cancer, tumours, acid burns, abnormalities caused by HIV/AIDS, and opportunistic infections, amongst others, are able to get medical assistance. Such treatment is usually very expensive and remains a dream to most Ugandans; therefore, it is companies like CBC that keep the Hope Ward and the .................................hope of its patients - alive. CBC sponsored one of the wards 25 beds during 2007 a sponsorship that amounted to US$15 000. This amount included operational costs of the ward, such as salaries of doctors and nurses, surgical procedures, medicine and .....................................................disposables. On average, if a patient occupied a bed in the ward for a week, it would equate to about 50 patients per year. That is 50 lives that CBC impacted during 2007. Many of these patients now enjoy an improved quality of life and a ...........................restored hope for the future.

Health | General NBL Supports Battle Against Fever

Nairobi Bottlers Ltd (NBL) donated US$1430 to the Kenyan government in its effort to manage the recent Rift Valley Fever ( RV F) outbreak. Rift Valley Fever (RVF) is a zoonosis (a disease that primarily affects animals, but occasionally causes disease in humans) and is caused by a virus. It may cause severe disease in both animals and humans leading to high morbidity and mortality. Transmission to humans is by contact with the blood, body fluid or organs of infected animals, infected mosquitoes, infected animal products and through inoculation with infected inoculants. The disease has spread to various districts in Kenya and every effort is being made by the Kenyan Government to control and manage its spread. There is no established course of treatment for patients infected with RFV virus prevention is still the most effective method....
*Image (above): Daryl Wilson (Country Manager, Kenya) addressed local and international
media at a media briefing organised to update the public on Kenya's Rift Valley Fever outbreak. With him is the Honourable Joseph Munyao (Kenya Minister for Livestock Development and Fisheries).

Kenya

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COMMUNITY
Education
Education A Head Start for Future Leaders
Century Bottling Company (CBC) is tackling the matter of education head-on by helping the youth of Uganda to reach for their dreams. The company is achieving this through the continuation of the Kulika Scholarship Scheme - a diploma scholarship scheme for 26 young, deserving people who do not have the financial means to further their education. CBC has donated US$18 160 to cover the costs of tuition fees to complete the diploma courses in institutions of higher learning in various parts of Uganda - although you cannot put a price on education and the opportunities that it presents.

Uganda

Border-Kei - South Africa

Education Teaching the Children Well
The Border-Kei (BK) region of Coca-Cola Fortune has combined the support of education with the nurturing of the environment in two successful projects. This initiative began when Thembelihle Primary School, located outside Butterworth in the rural area of Ngqamakhwe, approached CCF for donations. In return, they collected cans to clean up the surrounding areas. CCF rewarded the school with 2 computers, a multi-functional printer and scanner, a laminator, and a water-well for the class that collected the most cans, as well as bicycles for students who met certain criteria. The learners collected a room full of cans in the effort to clean their environment. The total cost of CCF's donations amounted to US$2 207. Zuzule L.P School, just outside East London in the Mdantsane Township, also embarked on an initiative to collect cans and clean their surroundings. They were rewarded with 2 computers, a laminator, a water-well, junior laptops, bookbinders, and small gifts for the children, collectively valued at US$1 825.

Northern Region - South Africa

Education Learning Centre for Limpopo

Our sponsorships to cover the gapsare intended that the Department of Education and parents could not cover financially.

Education Champions of Education in Kandy

Sixty young lives at Sithumina School in Kandy, Sri Lanka, are being shaped for the future with the help of Coca-Cola Sri Lanka. The company collaborated with Brave World, a childrens leadership programme geared towards child development by inculcating qualities such as selfconfidence, discipline, communication and motivational skills, to spearhead this initiative at a cost of US$1 000. Coca-Cola Sri Lanka is also actively enhancing the development of English learning at Sithumina School by having constructed an English activity room. The room is geared to deliver interactive sessions, which will improve students practical knowledge of English and develop their skills in reading, writing and speech. The project cost amounted to US$2 000.

Sri Lanka

Education Investing in Tomorrows Leaders

m

Nepal

Coca-Cola South Africa (CCSA), Coca-Cola Fortune, and their partners, launched a Learning Centre project in Limpopo in September 2007. The Coca-Cola Africa Foundation committed over US$636 700 for the project and Coca-Cola Fortune invested both financially and in-kind to the project. This launch was in partnership with the Discovery Channel Global Education Initiative and provides schools and community learning centres in areas that do not enjoy the resources of more urban districts with televisions, VCR/DVD players, three years of teacher training, and an ongoing delivery of relevant video material. These projects currently serve 1.6 million members of such communities. The Learning Centre enables teachers from six primary schools in the rural GaMaleboho and GaMakgato areas of the Province to use television and videos/DVDs in the classroom. The six primary schools are Tlhona Sedimong, Mmakgomo, Rasekgale, Malenkwana, Maboi and Malolwane. Teachers from the six schools receive training through workshops, which equips them to integrate educational video content into their curricular objectives. The Learning Centre also operates as a versatile community resource designed to benefit parents, grassroots HIV/AIDS organisations, and healthcare workers who desire to receive and distribute information through TV and video.

Education School Support by the Border-Kei Region

Border-Kei - South Africa

32

Coca-Cola Fortune Border-Kei (CCF BK) is actively involved in education on a local community level as illustrated by its involvement with Ethembeni Pre-School and Lengeni High School. The Ethembeni Pre-School is situated in a rural area just outside King Williams Town (KWT). Schooling is conducted in a shack with very limited resources. CCF sponsored the pre-school with plastic tables and chairs, paint, backpacks, stationery, puzzles and lunch boxes; all in an effort to facilitate better and more efficient learning. The sponsorship was valued at US$637. Lengeni High School is located in the rural area of Butterworth. The school approached CCF (BK) for assistance with educational equipment. CCF has sponsored the school with 2 computers, a multifunctional printer, scanner, fax, and copier, a bookbinder and a laminator to optimise the effectiveness of the computers. These are intended to ensure efficient learning and to cover the gaps that the Department of Education and parents could not cover financially. This sponsorship was valued at US$1 132.

Rotary International held a Rotary Youth Leadership Award (RYLA) Programme, which gave Bottlers Nepal Limited (BNL) an opportunity to support the countrys youth through sponsorship. The programme was held at Small Heaven Secondary School in Bharatpur, and targeted youth between the ages of 14 and 16 years. These youth were encouraged to participate in skills development programmes, enabling them to make informed choices about their future. The RYLA programme enabled young people to tackle issues such as responsibility, inter-personal relations, improving leadership and communication skills, and learning about businesses and institutions. They were also able to exchange ideas with experts, explore new career paths, learn more about co-ordination, and discuss creative .......................approaches for resolving family, social and professional conflicts.

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COMMUNITY
Other
Other | Poverty Alleviation March for the Poor
According to UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific), one in five Vietnamese people live below the poverty line, making the fight against poverty one of the most critical social issues and government priorities in Vietnam. The March for the Poor is organised annually by the National Fatherland Front (one of the largest NGOs in Vietnam) and the National Labour Union to raise public awareness about poverty by marching 2.5km. It is the largest community event held in Thu Duc (the location of Coca-Colas main bottling plant). Coca-Cola Beverages Vietnam (CCBV) is a key supporter of the March for the Poor together with TCCC, providing employee volunteers, free beverages served from pushcarts, t-shirts, and lowcost housing (Mercy Houses) to disadvantaged families within the community. This is the second consecutive year in which CCBV has partnered with this venture. 5 000 community members and 100 CCBV employee volunteers and family members were involved in the 2007 march. CCBVs donations amounted to US$1 000, while the collective donated staff time equated to 440 hours.

Employee-driven Initiatives

Vietnam

The DD Flood Emergency Support Group aids affected residents with particular focus on rehabilitating schools and supporting flood-affected students (in partnership with ProPride a local NGO), at a cost of over US$25 000. The project has provided emergency relief to flood-affected residents of DD and has rehabilitated the schools used as makeshift camps to prepare them for the new school year, repainted classrooms, repaired desks, broken windows and electrical fixtures. In addition, the project has provided 700 blankets, clothing and utensils to flood-affected residents. Moreover, a water tower was installed and uniforms and school supplies were provided for students whose parents were affected by the floods.

are the future Childrengive them... we will wings and wishes

web: www.wingsandwishes.org email:wings&wishes@ccsabco.co.za

Other | Post-Tsunami Support Rebuilding Lives - Post-Tsunami

Sri Lanka

WINGS & WISHES

Committed to Suppoting Critically Ill Children
The Wings & Wishes initiative was undertaken by Group Office, Port Elizabeth, in 2006 after a group of employees developed the innovative idea of donating their frequent flyer miles as part of The Everest Challenge. These miles, as well as all proceeds from fundraising initiatives, are directed to the transport of critically ill children and an accompanying family- or suitable medical support team member to the Red Cross Childrens Hospital in Cape Town, South Africa, or an alternative appropriate medical facility, for treatment. Wings & Wishes demonstrates the power of an employee-driven community project. All staff members and casual aides work on a voluntary basis, and all marketing material and initiatives are based solely on donations and contributions. In 2006, a total of 54 children were assisted, and, as word of the programme spreads, requests for flights are almost a daily occurrence. The goal of assisting 140 children by year 2010 was reached by February 2008, and had exceeded 168 by the end of March! Of these 168, 48 children have had more than one trip to the Red Cross Hospital, some for additional treatment and

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The 2004 tsunami is etched in peoples memories indeed, its effects are still evident today. Companies like Coca-Cola continue to help with the rebuilding process. In the aftermath of a natural disaster such as a tsunami, natural resources, such as water, can sometimes be inaccessible. Coca-Cola Sri Lanka embarked on a drinking water project in Kalupe, Hikkaduwa, in partnership with the UNDP (United Nations Development Programme), in order to help those affected by the 2004 tsunami in the Caritas Housing scheme. A .2km pipeline was laid for the beneficiaries at a cost of US$ 29 000, providing safe drinking water and a healthy living environment for the community. In addition, Coca-Cola Sri Lanka took over the development work of Mahamaya Girls School in Hikkaduwa, which was destroyed by the tsunami. Coca-Cola Sri Lanka and their NGO partners, Round Table Sri Lanka, were jointly involved in rebuilding the school, which cost US$500 000 and was fully constructed by December 2007. The school will benefit approximately 500 students. Moreover, Coca-Cola Sri Lanka, along with the support of Habitat for Humanity, have built and handed over the Coke Village (15 homes along with a community centre and childrens playground) to deserving families in the city of Galle. Most of the Coke employees volunteered to visit the site and help the community by way of motivating them towards a better tomorrow and in terms of construction work. The building of the Coke Village amounted to US$90 000.

others for check-ups after the completion of their treatment. Patients range from just 3 months to 18 years old. This year, Round Table from East London adopted Wings & Wishes as their project for the year and there now exists an East London Wings & Wishes branch. Round Table will assist by donating proceeds gleaned from their typical fund-raising initiatives, such as Christmas parties, ftes, and so on. In addition, one of the Rotary clubs in Port Elizabeth has chosen Wings & Wishes to be the beneficiary of a large charity event in November. With the focus being on saving childrens lives, Wings & Wishes invites any potential business- and private partners to join them in this rewarding initiative. For more information, visit www.wingsandwishes.org. Much-appreciated support has also come from companies like Hertz and Rennies, who have undertaken various activities in order to assist financially, as well as with materials like shampoo, soap and creams. Coca-Cola Sabco employees have also played their part in raising and donating money. Reaching these goals is the fuel that keeps Wings & Wishes as a top priority.

Other | Disaster Relief DD Flood Emergency Support Project

Seasonal flooding often hits low-lying parts of Ethiopia. Dire Dawe (DD) is hard-hit by these floods. Loss of lives, homes and possessions is a harsh reality for many. CCS, East African Bottling Share Company (EABSC), TCCC, the Ethiopian Government and the public, have collaborated to implement an extensive relief operation.

Ethiopia

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Corporate Responsibility Review 07


Notes
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Coca-Cola Sabco remains committed to tracking our progress against clear sustainability milestones.

2008 and Beyond

Our commitment and resolve remains as strong as ever to build a sustainable business within sustainable communities.

This report is printed on recycled paper. Reference: Material in this report has been influenced by content in many Citizenship/CSR reports from The Coca-Cola Company and some other Coca-Cola Bottlers. We recognise and acknowledge this input. Inputs from the CIA World Factbook 2007 and Human Development Report 2006.

Calculations
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Estimated additional jobs supported is calculated based on a multiplier of 10 jobs created for every one direct job. (Ref: Economic Impact of the Coca-Cola System in South Africa, Moore School of Business, University of South Carolina, March 2005). While estimates of the number of jobs created for every one direct job have varied slightly in past studies, the most recent study by the Moore School of Business has influenced the approximation of the impact of the Coca-Cola Systems value chain in CCS territories. This is a conservative estimation, as the study found this multiplier to be 17 in the case of South Africa.

Disclaimer
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Use of this publication and the information therein is at the users own risk. The Coca-Cola Sabco Group accepts no liability whatsoever relating to any loss, expense, claim or damage, whether direct, indirect or consequential, arising from the information in this publication, your use of this publication, or any action or transaction resulting therefrom, even if the Coca-Cola Sabco Group has advised of such loss, expense, claim or damage. 2008

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Corporate Responsibility Review 07