Coca-Cola Enterprises, Inc. Reports Third-Quarter 2015 Results, Affirms Full-Year Earnings Outlook

• Third-quarter diluted earnings per share were 72 cents on a
  reported basis or 84 cents on a comparable basis, including a negative
  currency translation impact of 15 cents.
• Net sales were $1.8 billion, down 14½ percent on a reported basis
  or down 1 percent on a currency-neutral basis; volume declined 1
  percent.
• Reported operating income was $260 million, down 24½ percent;
  comparable operating income was $297 million, down 12 percent or up 2
  percent on a currency-neutral basis.
• CCE affirms its full-year profit guidance for 2015, including
  comparable and currency-neutral diluted earnings per share growth at
  the upper end of the range of 6 percent to 8 percent, with slightly
  positive operating income growth and flat to slightly negative net
  sales growth.

ATLANTA–(BUSINESS WIRE)–Coca-Cola Enterprises, Inc. (NYSE: CCE) (Euronext Paris: CCE) today
reported third-quarter 2015 operating income of $260 million or $297
million on a comparable basis. In the quarter, diluted earnings per
share were 72 cents on a reported basis or 84 cents on a comparable
basis. Currency translation had a negative impact of 15 cents on
comparable diluted earnings per share.

Third-quarter 2015 net sales totaled $1.8 billion, down 14½ percent from
the same quarter a year ago. On a currency-neutral basis, net sales were
down 1 percent.

“We continue to face a marketplace impacted by persistent softness in
the consumer environment,” said John F. Brock, chairman and chief
executive officer. “Given these conditions, we are continuing to seek
new ways to grow net sales and increase our effectiveness and efficiency
as we work closely with our customers to enhance our prospects for
growth.

“We will continue to manage each element of our business to deliver
against our outlook for the year, even as we prepare for the launch of
Coca-Cola European Partners in the second quarter of next year,” Mr.
Brock said. “To accomplish this, teams are focused on three key areas:
delivering against their operating goals for the year, closing the
transaction on a timely basis, and planning for a successful transition
to the new company.

“Each of these efforts reflects our ongoing commitment to building
shareowner value, our most important goal.”

OPERATING REVIEW

Total third-quarter volume declined 1 percent. Sparkling brands declined
1½ percent. Coca-Cola trademark brands were down 2 percent as growth in
Coca-Cola Life and Coca-Cola Zero partially offset declines in other
Coca-Cola brands. Energy brands declined ½ percent, with
mid-single-digit growth in Monster-branded beverages. Still brands grew
3 percent, benefitting from growth in Capri-Sun, Chaudfontaine, and
growth in glacéau smartwater in Great Britain. Volume in Great Britain
declined 4 percent, reflecting in part poor August weather, while
continental European volume grew 1 percent, led by growth in France.

Third-quarter net pricing per case was down ½ percent, and cost of sales
per case declined 2½ percent. Operating expenses were up 2 percent.
These figures are comparable and currency neutral.

“We are working diligently to deliver our outlook for 2015 and to find
new ways to return sustained, value-building growth to our business,”
said Hubert Patricot, executive vice president and president, European
Group. “The soft consumer environment makes it imperative that we
continue to innovate at every level of our company, from brands, to
operations, to customer service.”

FULL-YEAR 2015 OUTLOOK

For 2015, CCE continues to expect diluted earnings per share to grow at
the upper end of the 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 diluted earnings per share by
approximately 18 percent.

Operating income is expected to achieve slightly positive growth, while
net sales growth is now expected to be flat to slightly negative, both
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 approximately 27 percent.

In the third quarter, CCE completed the planned 2015 repurchase of
approximately $600 million of its shares.

COCA-COLA EUROPEAN PARTNERS

As announced earlier in the third quarter, Coca-Cola Enterprises,
Coca-Cola Iberian Partners SA (CCIP), and Coca-Cola Erfrischungsgetränke
AG (CCEAG), a wholly owned subsidiary of The Coca-Cola Company (NYSE:
KO), have agreed to combine their businesses into a new company to be
called Coca-Cola European Partners Plc., (CCEP), in a transformational
transaction that will create the world’s largest independent Coca-Cola
bottler, based on net sales.

Pending collective approval by Coca-Cola Enterprises’ shareholders and
regulatory agencies, the transaction is expected to close in second
quarter, 2016.

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 nonalcoholic 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.
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.

This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval.

In connection with the proposed transaction, CCEP will file with the
SEC a registration statement on Form F-4 that will include a preliminary
proxy statement/prospectus regarding the proposed transaction. After the
registration statement has been declared effective by the SEC, a
definitive proxy statement/prospectus will be mailed to CCE’s
stockholders in connection with the proposed transaction.

_____________________

Reconciliations 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 news release.

___________________________

(a) These non-GAAP measures are provided to allow investors to more
clearly evaluate our operating performance and business trends.
Management uses this information to review results excluding items that
are not necessarily indicative of ongoing results. The adjusting items
are based on established defined terms and thresholds and represent all
material items management considered for year-over-year comparability.

(b) As reflected in CCE’s U.S. GAAP Condensed Consolidated Financial
Statements.

(c) Amounts represent the net out-of-period mark-to-market impact of
non-designated commodity hedges.

(d) Amounts represent nonrecurring restructuring charges.

(e) Amounts represent costs associated with the pending merger with
Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke as
announced on August 6, 2015.

(f) Amounts represent gains associated with the sale of a distribution
facility in Great Britain.

(g) Amounts represent the tax impact of both changes in underlying rates
and cumulative nonrecurring items on the quarter.

___________________________

(a) These non-GAAP measures are provided to allow investors to more
clearly evaluate our operating performance and business trends.
Management uses this information to review results excluding items that
are not necessarily indicative of ongoing results. The adjusting items
are based on established defined terms and thresholds and represent all
material items management considered for year-over-year comparability.

(b) As reflected in CCE’s U.S. GAAP Condensed Consolidated Financial
Statements.

(c) Amounts represent the net out-of-period mark-to-market impact of
non-designated commodity hedges.

(d) Amounts represent nonrecurring restructuring charges.

(e) Amounts represent costs associated with the pending merger with
Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke as
announced on August 6, 2015.

(f) Amounts represent gains associated with the sale of a distribution
facility in Great Britain.

(g) Amounts represent the tax impact of both changes in underlying rates
and cumulative nonrecurring items on the quarter.

___________________________

(a) These non-GAAP measures are provided to allow investors to more
clearly evaluate our operating performance and business trends.
Management uses this information to review results excluding items that
are not necessarily indicative of ongoing results. The adjusting items
are based on established defined terms and thresholds and represent all
material items management considered for year-over-year comparability.

(b) As reflected in CCE’s U.S. GAAP Condensed Consolidated Financial
Statements.

(c) Amounts represent the net out-of-period mark-to-market impact of
non-designated commodity hedges.

(d) Amounts represent nonrecurring restructuring charges.

(e) Amounts represent costs associated with the pending merger with
Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke as
announced on August 6, 2015.

(f) Amounts represent gains associated with the sale of a distribution
facility in Great Britain.

___________________________

(a) Currency impact is calculated by converting current year results at
prior year exchange rates.

(b) Calculated based on CCE’s U.S. GAAP Condensed Consolidated Financial
Statements.

(c) These non-GAAP measures are provided to allow investors to more
clearly evaluate our operating performance and business trends.
Management uses this information to review results excluding items that
are not necessarily indicative of ongoing results. The adjusting items
are based on established defined terms and thresholds and represent all
material items management considered for year-over-year comparability.
See the Reconciliation of GAAP to non-GAAP tables in this release for a
list of all items impacting comparability.

___________________________

(a) The non-GAAP financial measures “Currency-Neutral Bottle and Can Net
Pricing Per Case” and “Currency-Neutral Bottle and Can Cost of Sales Per
Case” are used to more clearly evaluate bottle and can pricing and cost
trends in the marketplace. These measures exclude items not directly
related to bottle and can pricing or cost and currency exchange rate
changes.

(b) The non-GAAP measure “Comparable Bottle and Can Volume” is used to
analyze the performance of our business on a constant period basis.
There were the same number of selling days in the third quarter of 2015
versus the third quarter of 2014. There were four additional selling
days in the first nine months of 2015 versus the first nine months of
2014.

(c) The non-GAAP measure “Free Cash Flow” is provided to focus
management and investors on the cash available for debt reduction,
dividend distributions, share repurchase, and acquisition opportunities.

Contacts

Coca-Cola Enterprises, Inc.
Investor Relations
Thor
Erickson, +1-678-260-3110
or
U.S. Media Relations
Fred
Roselli, +1-678-260-3421
or
European Media Relations
Ros
Hunt, +44 (0) 7528 251 022

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