Coca-Cola Enterprises, Inc. Reports First-Quarter 2015 Results

Coca-Cola Enterprises, Inc. (NYSE: CCE) (Euronext Paris: CCE) today reported first-quarter 2015 operating income of $158 million or $165 million on a comparable basis. In the quarter, diluted earnings per share were 40 cents on a reported basis or 42 cents on a comparable basis. Currency translation had a negative impact of 11 cents on comparable diluted earnings per share.

For the first quarter, net sales totaled $1.6 billion, down 13 percent from the same quarter a year ago. On a currency-neutral basis, net sales increased 4 percent.

“Our first-quarter results reflect volume growth in Great Britain, a continued soft consumer environment in our territories, our focus on managing all aspects of our business effectively, and the benefit of four extra selling days,” said John F. Brock, chairman and chief executive officer. “As we enter the key summer selling season, we are working diligently to improve our growth outlook through innovation, marketing initiatives, and by maximizing our effectiveness.

“Each of our efforts is directed toward our ultimate goal: continuing to build shareowner value.”

OPERATING REVIEW

During the first quarter, comparable volume grew 1 percent. Total volume was driven by mid-single-digit growth in still brands, with flat volume in Coca-Cola trademark products. Volume in Great Britain grew 8½ percent, reflecting solid growth in Coca-Cola trademark products and the impact of cycling weak results in the same quarter a year ago. Volume declined 3½ percent on the Continent, compared to growth of 3½ percent in the first quarter of last year.

For the first quarter, net pricing per case declined 2 percent and cost of sales per case declined 2 percent. Operating expenses increased 3 percent, in part due to the four extra selling days. These figures are comparable and currency neutral.

“We continue to work closely with our customers to strengthen our execution, create value, and drive growth,” said Hubert Patricot, executive vice president and president, European Group. “Together, we are focused on building on our successful innovation, which includes such products as Coca-Cola Life, and implementing our new One Brand strategy, which links our four core Coca-Cola trademark products.

“In addition, we are providing strong execution for our marketing initiatives, which include commemorating the 100^th anniversary of the contour Coca-Cola bottle and the 2015 Rugby World Cup.”

FULL-YEAR 2015 OUTLOOK

For 2015, CCE continues to expect diluted earnings per share to grow in a range of 6 percent to 8 percent on a comparable and currency-neutral basis. Based on recent rates, currency translation would negatively impact full-year 2015 earnings per share by just over 18 percent.

Net sales and operating income are each expected to achieve slightly positive growth on a comparable and currency-neutral basis.

The company expects 2015 free cash flow in a range of $600 million to $650 million including the expected negative impact of currency translation based on recent rates. Capital expenditures are expected to be approximately $325 million. Weighted average cost of debt is expected to be approximately 3 percent, and the comparable effective tax rate for 2015 is expected to be in a range of 27 percent to 28 percent.

CCE expects to repurchase approximately $600 million of its shares in 2015. During the first quarter, the company repurchased approximately $300 million of its shares. These plans may be adjusted depending on economic, operating, or other factors, including acquisition opportunities.

CONFERENCE CALL

CCE will host a conference call with investors and analysts today at 10 a.m. EDT. The call can be accessed through the company’s website at www.cokecce.com.

ABOUT CCE

Coca-Cola Enterprises, Inc. is the leading Western European marketer, producer, and distributor of non-alcoholic ready-to-drink beverages and one of the world’s largest independent Coca-Cola bottlers. CCE is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. CCE operates with a local focus and has 17 manufacturing sites across Europe, where the company manufactures nearly 90 percent of its products in the markets in which they are consumed. Corporate responsibility and sustainability is core to CCE’s business, and the company has been recognized by leading organizations in North America and Europe for its progress in water use reduction, carbon footprint reduction, and recycling initiatives. For more information about CCE, please visit www.cokecce.com and follow the company on Twitter at @cokecce.

FORWARD-LOOKING STATEMENTS

Included in this news release are forward-looking management comments and other statements that reflect management’s current outlook for future periods. As always, these expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this news release should be read in conjunction with the risks and uncertainties discussed in our filings with the Securities and Exchange Commission (“SEC”), including our most recent Form 10-K and other SEC filings.

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A reconciliation of reported (GAAP) to comparable (non-GAAP) information and other non-GAAP measures used by management in managing the business are detailed on the following pages of this release.

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