KO

The Coca-Cola Company positions itself as a total beverage company, with trademarked products sold in more than 200 countries and territories. Its portfolio spans Trademark Coca-Cola, sparkling flavors, water, sports, coffee and tea, juice, value-added dairy and plant-based beverages, and emerging beverages. Core sparkling brands include Coca-Cola, Sprite, Coca-Cola Zero Sugar, Fanta and Diet Coke/Coca-Cola Light. The company distributes through independent bottling partners, distributors, wholesalers and retailers, supplemented by consolidated bottling and distribution operations. Management states that beverages carrying company-owned or licensed trademarks represent 2.2 billion of an estimated 65 billion beverage servings consumed globally each day.0001628280-26-010047 #0

The business operates through two lines: concentrate operations and finished product operations. Concentrate operations generally earn revenue by selling beverage concentrates, beverage bases, syrups—including fountain syrups—and certain finished beverages to authorized bottlers. Bottling partners then combine inputs with water and, where applicable, sweeteners, package beverages in authorized containers bearing company or licensed trademarks, and sell the finished products onward. This model links the company’s ownership, licensing, marketing and formulation activities with a broad bottler-led route to market, while also retaining selected consolidated bottling and distribution operations.0001628280-26-010047 #10001628280-26-010047 #0

KO’s operating structure comprises geographic segments—Europe, Middle East and Africa; Latin America; North America; Asia Pacific; and Bottling Investments—alongside Corporate. Operating units under the four geographic segments are intended to support regional and local execution, reduce duplication and scale new products more quickly, working with global marketing category leadership teams on consumer engagement, innovation and end-to-end market integration. Corporate includes a strategic center focused on initiatives, policy, governance and scaling global programs, plus platform services covering activities such as data management, consumer analytics, digital commerce and social/digital hubs.0001628280-26-010047 #00001628280-26-010047 #1

Effective January 1, 2025, the company sunset its Global Ventures operating segment as part of an effort to streamline and simplify the operating structure. Global Ventures had primarily overseen Costa, innocent and doğadan, as well as fees from distribution coordination agreements with Monster Beverage. Costa, excluding its ready-to-drink business, innocent and doğadan are now reported in EMEA; Costa ready-to-drink results and Monster-related fees are reported in the applicable geographic segments. At the consolidated level, reported FY2025 revenue, operating income, net income and operating cash flow provide the principal financial scale measures for the business.0001628280-26-010047 #0Revenues FY2025 = 47,941,000,000OperatingIncomeLoss FY2025 = 13,762,000,000NetIncomeLoss FY2025 = 13,107,000,000NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000

The company identifies brand recognition and loyalty, a worldwide bottler and distributor network, marketing capabilities and its employee base as competitive strengths. However, it competes with strong beverage suppliers in every geographic region, new entrants and—in many markets—powerful, concentrated retailers that can choose competing offerings or their own private-label brands. Competitive variables include pricing, advertising, promotions, in-store and point-of-sale activity, digital marketing, product and ingredient innovation, packaging, vending and dispensing equipment, and brand development and protection. Management also highlights rapidly evolving digital shopping patterns as a competitive challenge.0001628280-26-010047 #8

Inputs and resource availability remain integral operating considerations. Water is a principal ingredient in substantially all products, and management characterizes water availability, quality and sustainability as key challenges despite not historically experiencing significant supply difficulties. Sweeteners are also major inputs: high-fructose corn syrup is the principal nutritive sweetener in the United States, while sucrose is the principal one outside the United States. Both have historically experienced market-price fluctuations, and adverse weather can constrain agricultural commodity supply and increase input costs. Other materials include juices, milk, coffee, tea, PET, aluminum cans and glass bottles.0001628280-26-010047 #8

FY2025 profitability was supported by reported revenue, operating income and net income. These measures provide the core earnings base for assessing financial health, although the supplied facts alone do not identify the drivers of the year’s revenue or profit performance, such as pricing, volume, foreign exchange or portfolio changes.0001628280-26-010047 #53Revenues FY2025 = 47,941,000,000OperatingIncomeLoss FY2025 = 13,762,000,000NetIncomeLoss FY2025 = 13,107,000,000

The company reported positive operating cash flow in FY2025, alongside positive operating income and net income. This indicates that operations generated cash during the year, an important liquidity consideration. The available facts do not, however, provide capital expenditures, dividends, share repurchases, debt maturities or cash balances; therefore, they do not establish free-cash-flow generation or the extent of cash available after financing and investment needs.0001628280-26-010047 #42NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000OperatingIncomeLoss FY2025 = 13,762,000,000NetIncomeLoss FY2025 = 13,107,000,000

The reported asset base provides a measure of the resources supporting the business. Coca-Cola operates through concentrate and finished-product operations and distributes products through independent bottling partners, distributors, wholesalers, retailers and consolidated bottling and distribution operations. That model means the asset figure should be considered alongside the company’s mix of owned operations and partner-led distribution rather than as a stand-alone indicator of operating scale or liquidity.0001628280-26-010047 #42Assets FY2025 = 104,816,000,000

The supplied debt measure is reported for FY2023, while the income, cash-flow and asset measures are for FY2025. It therefore should not be treated as a same-period leverage ratio against the FY2025 measures. In addition, the facts identify this item as noncurrent long-term debt, so they do not by themselves capture current borrowings, total liabilities, interest expense, cash, or the maturity profile needed for a complete assessment of leverage and refinancing risk.0001628280-26-010047 #42LongTermDebtNoncurrent FY2023 = 35,547,000,000NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000OperatingIncomeLoss FY2025 = 13,762,000,000Assets FY2025 = 104,816,000,000

Revenue and cash-flow resilience remain exposed to consumer and operating risks identified by management. The company cites changing consumer preferences, health-related concerns, intense competition, evolving digital shopping behavior, product safety and quality requirements, sustainability dependencies, and competition for talent. Management also explains that revenue analysis considers volume, price/mix, foreign exchange and acquisitions or divestitures, while bottler ownership can affect the timing of concentrate-revenue recognition. These factors can influence reported growth and comparability across periods.0001628280-26-010047 #440001628280-26-010047 #450001628280-26-010047 #53Revenues FY2025 = 47,941,000,000NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000

Macroeconomic weakness, inflation, interest rates, commodity and energy costs, currency movements, trade policies and geopolitical instability could pressure demand, costs and profitability. The company notes that consumers facing difficult conditions may forgo beverages or trade down to lower-priced and private-label alternatives. It also reports that high inflation affected certain markets during 2025 and may continue in 2026. International conflicts have disrupted operations, while political activism has at times produced product boycotts that reduced demand. Conflict-related disruptions could raise transportation, energy, packaging and raw-material costs, impair logistics or supply chains, create labor shortages, damage assets, increase cybersecurity risk and restrict cross-border transfers of earnings or capital. Tariffs, import requirements, price controls and limits on profits could further affect profitability.0001628280-26-010047 #16

The breadth and evolution of global regulation create material compliance, capital-spending and operating-risk exposure. Applicable requirements span competition, product safety and quality, advertising and labeling, packaging deposits and recycling, environmental and labor matters, AI, privacy and data security. Differing rules and enforcement priorities across markets could require reformulation, increase production costs or capital expenditures, and constrain operations. Climate, packaging, water-use and wastewater rules could impose additional obligations on the company and bottling partners and may impede product production, distribution, marketing or sales. The uncertain legal landscape for AI could increase compliance expense or restrict use of those technologies. Alleged or actual noncompliance—including with sanctions, anti-corruption, competition, privacy and tax rules—could lead to litigation, investigations, penalties, corrective equipment or process changes, suspended production or distribution, and operational interruptions.0001628280-26-010047 #32

Sustainability commitments and reporting expectations present execution, disclosure, litigation and reputational risks. The company’s voluntary sustainability goals are aspirational rather than guaranteed, depend in part on bottling partners, suppliers and other third parties outside its control, and may require cooperation from industry peers, governments and civil society. Failure, or a perceived failure, to meet goals or stakeholder expectations could damage its reputation and ability to sell products; dissatisfied investors may reconsider their investment. Conversely, anti-ESG sentiment could generate scrutiny, boycotts, lawsuits or market-access restrictions. Mandatory due-diligence, disclosure and reporting requirements are evolving across jurisdictions, and a lack of convergence among standards is expected to continue raising compliance costs. Changes in methodologies, assumptions, operational scope or data quality—or errors in reporting—may require revisions to stated goals or reported progress and could increase litigation or regulatory-action risk.0001628280-26-010047 #38

Acquisition, integration and partnership execution could adversely affect consolidated results. Integrating acquired businesses, brands or bottling partners may be difficult across operations, technologies, products, systems and new business or supply-chain models. Extending financial-reporting, disclosure, cybersecurity, food-safety, quality, occupational-safety and sustainability controls to acquired operations can be costly and has at times contributed to negative publicity. Unforeseen liabilities and costs, internal-control or product-quality failures, or failure to realize strategic and financial objectives could harm results. The company also relies on licenses, joint ventures and strategic relationships, including its relationship with Monster; inability to manage those relationships or realize expected benefits could weaken financial performance.0001628280-26-010047 #21

Dependence on third-party service providers and business partners exposes the company to operational, cybersecurity, legal and reputational vulnerabilities that it cannot fully control. It relies on cloud-data-storage and other IT providers, suppliers, distributors, contractors, joint-venture partners and other external parties for services supporting key operations. These parties may face cybersecurity incidents, privacy violations, business interruptions, systems or employee failures, and their own legal, regulatory and market pressures. They may also fail to meet contractual or legal responsibilities on time. Although the company has procedures to assess, select, manage and monitor third parties, it does not control their operations, governance or compliance systems. Inadequate management of these relationships, or adverse events involving a provider or partner, could impair the company’s financial results.0001628280-26-010047 #21

FY2025 results provide the latest financial baseline: the Company reported revenue, operating income and net income, alongside a substantial asset base. Management characterizes the ability to generate operating cash flows as a fundamental strength of the business and frames liquidity and capital resources around that cash-generation capacity. This financial profile remains relevant as the Company funds global operations, pursues innovation and manages exposures that can affect reported results, including taxes, foreign operations and intangible-asset valuations.0001628280-26-010047 #63Revenues FY2025 = 47,941,000,000OperatingIncomeLoss FY2025 = 13,762,000,000NetIncomeLoss FY2025 = 13,107,000,000Assets FY2025 = 104,816,000,000

The Company recorded an additional impairment on the BodyArmor trademark in the fourth quarter of 2025 after operating results and lower future-performance expectations prompted an updated valuation analysis. Management attributed the decline in fair value principally to revised operating projections, slower projected long-term category growth, a more competitive environment, and more focused innovation and international-rollout plans. The Company cautioned that further impairment could be likely if near-term results miss revised projections or if macroeconomic conditions increase the discount rate without an offsetting improvement in operating performance.0001628280-26-010047 #49

Tax developments remain fluid. The Company said the U.S. tax legislation enacted in July 2025 did not materially affect its 2025 effective tax rate and is not expected to have a material effect in 2026. Separately, OECD administrative guidance issued in January 2026 introduced a side-by-side Pillar Two framework that largely exempts U.S.-headquartered companies from its application. However, revisions to legislation and further guidance are still expected, and the Company continues to monitor potential impacts across its operating jurisdictions.0001628280-26-010047 #63

Cash generation and debt-market access remain central to the stated financing approach. The Company generally does not raise capital through stock issuance, instead using debt financing to lower its overall cost of capital and increase return on shareowners’ equity. Management said it has historically borrowed domestically and internationally at reasonable rates, uses commercial paper, and regularly reviews the appropriate mix of short- and long-term debt. Operating cash flow and reported debt are therefore important reference points for evaluating funding capacity and financial flexibility.0001628280-26-010047 #63NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000LongTermDebtNoncurrent FY2023 = 35,547,000,000

The Company’s broader impairment framework highlights continued sensitivity to forecasting and macroeconomic assumptions. It uses discounted-cash-flow and market approaches to test indefinite-lived intangible assets and reporting units, and notes that forecasting future cash flows can be especially challenging in emerging and developing markets. Deteriorating operating conditions can reduce estimated cash flows, while higher discount rates can independently impair an asset even when actual cash flows meet or exceed earlier forecasts. Acquired intangibles may be particularly susceptible shortly after a transaction because they are initially recorded using then-current operating plans and macroeconomic conditions.0001628280-26-010047 #48

Operational execution also depends on supply-chain quality controls, sustainability progress and talent availability. The Company says its integrated quality-management program is intended to identify and mitigate product and ingredient risks across manufacturers and bottling partners. Achievement of sustainability goals depends partly on third parties—including bottlers, suppliers, governments and communities—whose actions are not fully within the Company’s control. At the same time, competition for specialized talent has increased amid changing worker expectations and broader shortages of qualified workers, creating another execution consideration for future business needs.0001628280-26-010047 #45

KO’s reported revenue, operating income, net income and operating cash flow establish the starting point for valuation context: the company combines a substantial sales base with reported operating profitability, bottom-line earnings and internally generated operating cash. These measures should be read together rather than treated as interchangeable, because the filing notes that acquisitions, divestitures and bottling-ownership changes can affect operating results and management performance measures. The company periodically buys or sells interests in bottling partners and manufacturing operations, while also acquiring or licensing brands to supplement beverage offerings; such actions can influence comparability across reporting periods and the interpretation of reported growth.0001628280-26-010047 #52Revenues FY2025 = 47,941,000,000OperatingIncomeLoss FY2025 = 13,762,000,000NetIncomeLoss FY2025 = 13,107,000,000NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000

Cash-flow interpretation warrants attention to the distinction between accounting earnings and cash taxes. The filing explains that the effective tax rate in the financial statements differs from the cash tax rate because book and tax recognition can occur at different times; some differences are permanent, while others reverse over time. It also describes deferred-tax assets and liabilities arising from temporary book-tax differences and says realization of future tax benefits depends on management’s assessment of available evidence, including historical and projected taxable income and tax-planning strategies. Accordingly, reported net income and operating cash flow may not move in lockstep solely because of operating performance.0001628280-26-010047 #52NetIncomeLoss FY2025 = 13,107,000,000NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000

The balance-sheet context includes total assets and total debt, but the supplied debt measure is specifically long-term debt rather than a complete measure of all financing obligations. Asset values may also embed estimates and judgments: management identifies recoverability of equity-method investments and indefinite-lived intangible assets, pension valuations, revenue recognition and income taxes among its critical accounting policies and estimates. The company states that actual results can differ from estimates and assumptions. For valuation work, this means the reported asset base and leverage reference point should be considered alongside the accounting judgments that affect carrying values and earnings, rather than as purely market-based measures.0001628280-26-010047 #45Assets FY2025 = 104,816,000,000LongTermDebtNoncurrent FY2023 = 35,547,000,000OperatingIncomeLoss FY2025 = 13,762,000,000NetIncomeLoss FY2025 = 13,107,000,000

Revenue quality and growth analysis should account for the company’s bottling model. Management evaluates demand using unit case volume, which captures products sold by both consolidated and unconsolidated bottlers, while revenue analysis considers volume, price/mix, currency movements, and acquisitions and divestitures. Revenue-recognition timing differs by bottler ownership: concentrate sales to consolidated bottlers are generally recognized when finished products are sold to a third party, whereas sales to unconsolidated bottlers are generally recognized when concentrates are sold to the bottler. Changes in bottler ownership can therefore affect reported revenue timing and certain metrics without necessarily changing systemwide consumer volume.0001628280-26-010047 #520001628280-26-010047 #53Revenues FY2025 = 47,941,000,000

The operating outlook carries consumer, regulatory and competitive considerations relevant to the durability of revenue and operating income. KO identifies obesity and chronic-disease concerns, evolving preferences for choice, personalization, sustainability and packaging transparency, and strong competition from global, regional and local companies. It also describes shifts toward mobile, e-commerce and digital discovery that require continuing marketing, innovation and e-commerce investment to sustain brand loyalty and market share. The company’s response includes expanded reduced-, low- and no-calorie offerings, packaging options, nutrition information and digital promotion, but the filing frames these conditions as challenges and risks rather than assured sources of growth.0001628280-26-010047 #44Revenues FY2025 = 47,941,000,000OperatingIncomeLoss FY2025 = 13,762,000,000

Execution dependencies extend beyond consumer demand. KO states that achievement of sustainability goals and aspirations depends partly on bottling partners, suppliers, governments, nongovernmental organizations, communities and other third parties, some outside its control. The company also cites greater competition for talent and a shortage of qualified specialized talent. Separately, its quality-management program imposes policies and specifications on the company, contract manufacturers and bottling partners, with laboratory testing, due diligence and ongoing assessment intended to mitigate safety and quality risks across the supply chain. These dependencies are relevant context for assessing the resilience of operating income and operating cash flow, even though the filing does not quantify their eventual financial effect.0001628280-26-010047 #45OperatingIncomeLoss FY2025 = 13,762,000,000NetCashProvidedByUsedInOperatingActivities FY2025 = 7,408,000,000