Guidance

Forward-Looking Statements

This document contains statements, estimates or projections that constitute “forward-looking statements” concerning the  financial condition, performance, results, guidance and outlook, dividends, consequences of mergers, acquisitions, joint  ventures, and divestitures, including the joint venture with Aboitiz Equity Ventures Inc. (AEV) and acquisition of Coca-Cola  Beverages Philippines, Inc. (CCBPI), strategy and objectives of Coca-Cola Europacific Partners plc and its subsidiaries  (together CCEP or the Group). Generally, the words “ambition”, “target”, “aim”, “believe”, “expect”, “intend”, “estimate”,  “anticipate”, “project”, “plan”, “seek”, “may”, “could”, “would”, “should”, “might”, “will”, “forecast”, “outlook”, “guidance”,  “possible”, “potential”, “predict”, “objective” and similar expressions identify forward-looking statements, which generally are  not historical in nature.

Forward-looking statements are subject to certain risks that could cause actual results to differ materially from CCEP’s  historical experience and present expectations or projections. As a result, undue reliance should not be placed on forward-looking statements, which speak only as of the date on which they are made. These risks include but are not limited to: 

1. those set forth in the “Risk Factors” section of CCEP’s 2023 Annual Report on Form 20-F filed with the SEC on 15 March  2024 and as updated and supplemented with the additional information set forth in the “Principal Risks and Risk Factors”  section of this document; 

2. risks and uncertainties relating to the global supply chain, distribution and sales, including impact from war in Ukraine and  increasing geopolitical tensions and conflicts including in the Middle East and Asia Pacific region, such as the risk that the  business will not be able to guarantee sufficient supply of raw materials, supplies, finished goods, natural gas and oil and  increased state-sponsored cyber risks; 

3. risks and uncertainties relating to the global economy and/or a potential recession in one or more countries, including risks  from elevated inflation, price increases, price elasticity, disposable income of consumers and employees, pressure on and  from suppliers, increased fraud, and the perception or manifestation of a global economic downturn; 

4. risks and uncertainties relating to potential water use reductions due to regulations by national and regional authorities  leading to a potential temporary decrease in production volume; and 

5. risks and uncertainties relating to the integration and operation of the joint venture with AEV and acquisition of CCBPI,  including the risk that our integration of CCBPI’s business and operations may not be successful or may be more difficult,  time consuming or costly than expected.  

Due to these risks, CCEP’s actual future financial condition, results of operations, and business activities, including its  results, dividend payments, capital and leverage ratios, growth, including growth in revenue, cost of sales per unit case and  operating profit, free cash flow, market share, tax rate, efficiency savings, achievement of sustainability goals, including net  zero emissions and recycling initiatives, capital expenditures, our agreements relating to and results of the joint venture with  AEV and acquisition of CCBPI, and ability to remain in compliance with existing and future regulatory compliance, may differ  materially from the plans, goals, expectations and guidance set out in forward-looking statements. These risks may also  adversely affect CCEP’s share price. Additional risks that may impact CCEP’s future financial condition and performance are  identified in filings with the SEC which are available on the SEC’s website at www.sec.gov. CCEP does not undertake any  obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events,  or otherwise, except as required under applicable rules, laws and regulations. Any or all of the forward-looking statements  contained in this filing and in any other of CCEP’s public statements may prove to be incorrect. 

Note Regarding the Presentation of Adjusted financial information and Alternative Performance Measures

Adjusted financial information 
Non-IFRS adjusted financial information for selected metrics has been provided in order to illustrate the effects of the  acquisition of CCBPI on the results of operations of CCEP and to allow for greater comparability of the results of the  combined group between periods. The adjusted financial information has been prepared for illustrative purposes only, and  because of its nature addresses a hypothetical situation. It does not intend to represent the results had the acquisition  occurred at the dates indicated, or project the results for any future dates or periods. It is based on information and  assumptions that CCEP believe are reasonable, including assumptions as at 1 January of the period presented relating to  provisional transaction accounting adjustments. No cost savings or synergies were contemplated in these provisional  adjustments.

The non-IFRS adjusted financial information has not been prepared in accordance with the requirements of Regulation S-X  Article 11 of the US Securities Act of 1933 or any generally accepted accounting standards, may not necessarily be  comparable to similarly titled measures employed by other companies and should be considered supplemental to, and not a  substitute for, financial information prepared in accordance with generally accepted accounting standards.

The acquisition completed on 23 February 2024 and the non-IFRS adjusted financial information provided reflects the  inclusion of CCBPI as if the acquisition had occurred at the beginning of the period presented. It has been prepared on a  basis consistent with CCEP IFRS accounting policies and includes provisional transaction accounting adjustments for the  periods presented. 

Alternative Performance Measures 

We use certain alternative performance measures (non-IFRS performance measures) to make financial, operating and  planning decisions and to evaluate and report performance. We believe these measures provide useful information to  investors and as such, where clearly identified, we have included certain alternative performance measures in this document  to allow investors to better analyse our business performance and allow for greater comparability. To do so, we have  excluded items affecting the comparability of period-over-period financial performance as described below. The alternative  performance measures included herein should be read in conjunction with and do not replace the directly reconcilable IFRS  measures. 
For purposes of this document, the following terms are defined: 

‘‘As reported’’ are results extracted from our condensed consolidated interim financial statements. 

“Adjusted” includes the results of CCEP as if the CCBPI acquisition had occurred at the beginning of the period presented,  including provisional acquisition accounting adjustments, accounting policy reclassifications and the impact of debt financing  costs in connection with the acquisition.

"Comparable’’ is defined as results excluding items impacting comparability, which include restructuring charges, net impact  related to European flooding, accelerated amortisation charges, expenses related to legal provisions, inventory fair value step  up related to acquisition accounting, impairment charges, acquisition and integration related costs, income arising from the  ownership of certain mineral rights in Australia and gain on sale of sub-strata and associated mineral rights in Australia.  Comparable volume is also adjusted for selling days. 

‘‘Adjusted comparable” is defined as adjusted results excluding items impacting comparability, as described above.

‘‘Fx-neutral’’ or "FXN" is defined as period results excluding the impact of foreign exchange rate changes. Foreign  exchange impact is calculated by recasting current year results at prior year exchange rates.

‘‘Capex’’ or “Capital expenditures’’ is defined as purchases of property, plant and equipment and capitalised software, plus  payments of principal on lease obligations, less proceeds from disposals of property, plant and equipment. Capex is used as  a measure to ensure that cash spending on capital investment is in line with the Group’s overall strategy for the use of cash.

‘‘Comparable free cash flow’’ is defined as net cash flows from operating activities less capital expenditures (as defined  above) and net interest payments, adjusted for items that are not reasonably likely to recur within two years, nor have  occurred within the prior two years. Comparable free cash flow is used as a measure of the Group’s cash generation from  operating activities, taking into account investments in property, plant and equipment, non-discretionary lease and net interest  payments while excluding the effects of items that are unusual in nature to allow for better period over period comparability.  Comparable free cash flow reflects an additional way of viewing our liquidity, which we believe is useful to our investors, and  is not intended to represent residual cash flow available for discretionary expenditures.

‘‘Comparable EBITDA’’ is calculated as Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), after adding  back items impacting the comparability of period over period financial performance. Comparable EBITDA does not reflect  cash expenditures, or future requirements for capital expenditures or contractual commitments. Further, comparable EBITDA  does not reflect changes in, or cash requirements for, working capital needs, and although depreciation and amortisation are  non-cash charges, the assets being depreciated and amortised are likely to be replaced in the future and comparable  EBITDA does not reflect cash requirements for such replacements. 

‘‘Net Debt’’ is defined as borrowings adjusted for the fair value of hedging instruments and other financial assets/liabilities  related to borrowings, net of cash and cash equivalents and short-term investments. We believe that reporting net debt is  useful as it reflects a metric used by the Group to assess cash management and leverage. In addition, the ratio of net debt to  comparable EBITDA is used by investors, analysts and credit rating agencies to analyse our operating performance in the  context of targeted financial leverage. 
 

‘‘Dividend payout ratio’’ is defined as dividends as a proportion of comparable profit after tax.

Additionally, within this document, we provide certain forward-looking non-IFRS financial information, which management  uses for planning and measuring performance. We are not able to reconcile forward-looking non-IFRS measures to reported  measures without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual  impact or exact timing of items that may impact comparability throughout year.