P.

1 Opening introduction (GE)

Hello everyone, I’m Ge Liang, today our team, Force Partners, along with
Nikhil Chaudhary, Shuk Wan Ip, Pai Peng, and Que Zheng is excited to present
our analysis of The Coca-Cola Company, symbol KO on the NYSE. Together,
we’ve explored Coca-Cola’s market position and its potential as a reliable
investment.

P.2 Recommendation (GE)

First of all, our team recommends investing in The Coca-Cola Company. With
its stable dividend yield and market resilience, we believe Coca-Cola is a
valuable addition to any investment portfolio, especially for those seeking
stability in uncertain economic times. Our target price for Coca-Cola stock is
$69.79, offering a potential upside of approximately 9.56% from its current
price. Sixty nine dollars and seventy nine cents
Nine point five six percentage

P.4 Stock Overview (Nikhil)

The Coca-Cola brand is a global leader in the non-alcoholic beverage
industry, renowned for its iconic brand and diverse product range. Operating
across over 200 countries, It offers beverages in multiple categories.
Currently priced around $63.70 per share, The company holds a substantial
market cap of $275 billion, reinforcing its leading position in the industry.
Known as a “defensive” stock, Coca-Cola maintains steady demand
regardless of market fluctuations and is less affected by economic
downturns.

P.5 Industry Overview – PESTLE Analysis

Moving to the industry perspective, Coca-Cola operates in a complex
environment, influenced by several external factors:
From Political standpoint, Coca-Cola faces health-driven regulations
worldwide, like sugar taxes and plastic reduction mandates. While core
products remain resilient in economic downturns, rising costs in materials
can press margins. Socially, the trend toward health-conscious choices
pushes Coca-Cola to innovate with low-sugar options. From Technological,
Legal and Environmental perspective, Coca-Cola employs advanced packaging and
e-commerce to enhance delivery and accessibility, complies with strict advertising
standards for children, and focuses on cutting plastic waste and water
consumption to support sustainability.

P.6 Competitive Analysis – Porter’s Five Forces

Next, let’s assess Coca-Cola’s competitive position through Porter’s Five
Forces:
Coca-Cola faces high rivalry, especially with PepsiCo, pushing both to focus
on innovation. The threat of substitutes is moderate to high, as health-
conscious consumers explore alternatives like kombucha. Buyers have
moderate power, pushing for healthier choices, so Coca-Cola must stay
responsive. New entrants face high barriers due to Coca-Cola’s brand
strength and scale. Supplier power remains low, as the company has strong
leverage with its suppliers.

If we were to compare Coca-Cola with its primary competitor, PepsiCo, we

see Coca-Cola leading slightly in market cap. Coca-Cola’s current share price
of $63.70 closely aligns with its 52-week average of $64.79, reflecting
stability.
Other competitors like National Beverage and Monster have smaller market
caps and higher earnings multiples, suggesting some growth potential but
with a greater risk factor.

P.7
In conclusion, while PepsiCo offers robust competition, Coca-Cola’s
consistent market cap and stable share price make it an appealing and
reliable investment. (The end) 2 minutes 20 seconds speak time

P.9 Thesis 1(PP)

We concluded three investment theses today. The first Investment Thesis is
Strong Brand and Global Market Leadership.
Coca-Cola Company is a full-line beverage company with a long history. It
offers over 200 beverage brands in more than 200 countries and regions.
This brand strength provides a competitive advantage and helps the company
maintain customer loyalty and pricing power. As we can see from this picture,
Coca-Cola has many diversified products, such as sparkling water, hydration,
coffee and tea, juices, and alcohol. With so many products and good sales,
the company has occupied a large market share.

P.8 Thesis 2 (PP)

The second investment thesis is resilience in economic uncertainty. The

world economy faces uncertainties, such as fluctuations in interest rates, raw
material prices, and tariffs. However, many of Coca-Cola's products are daily
necessities, like pure water and sparkling soft drinks. This means that when
the economy downturns, the decline in sales of Coca-Cola products is likely
to be minimal. Additionally, Coca-Cola has a diverse product portfolio that
can meet the needs of almost everyone.

Coca-Cola possesses strong pricing power. As a company with high brand

value, Coca-Cola can moderately raise its product prices to counteract the
effects of rising costs. Consumers often accept slight price increases
because of their brand loyalty, allowing companies to maintain profit margins
even as costs rise.

P.11 Thesis 3
Coca-Cola company has stable cash flows and dividend growth, which gives
a strong foundation for our third investment thesis. Since Coca-Cola
company leads the global beverage industry with a wide range of products, its
brand recognition helps Coca-cola company to keep a steady demand across
the beverage market. Also, Coca-Cola company operates in over 200
countries. It can earn revenue from a wide range of sources. These lead to
stable cash flows and provide security for investors investing in low-volatility
investments.

When we look back at the dividend payment history of Coca-Cola company,

we can see a constant increase in dividends for over 50 years. The company
can return capital to shareholders consistently. Besides, the dividend yield of
Coca-Cola company is generally above industry averages, which is a big
benefit for income-seeking investors.

P.13 Valuation – Football field analysis (IP)

Now, I will conclude our findings in valuation. We used the DCF method,
comparables method and 52-week trading range in our valuation. We used
70% weighting in the DCF method. Since Coca-Cola company has a stable
cash flow and a mature business, DCF is more reliable to forecast the price in
the long term. We used 20% weighting in the comparables method because
Coca-Cola company is a unique and stable global brand with a dominant
market value, it is less comparable to other companies in the beverage
industry. We used only 10% weighting in 52-week trading range because 52
weeks only reflects short-terms.
Our target price is 69.79. With the current price of 63.70, we will have an
upside of 9.56%, which is between 5% to 20%. Therefore, we will suggest
investors buy the shares.

P.14 Valuation – Sensitivity

Coca-cola company is a large and stable company, a small change in WACC
and terminal growth rate, can decrease the valuation by a large margin. This
shows how sensitive the price is with these inputs.
For upside case, for example, with a lower interest rate or better balance
sheet, it may gives a maximum price of 128,84. But in the downside case,
maybe with higher risk or any other factors, it may gives a minimum price of
49.41. This table helps investors understand the risks and rewards of buying
the shares of Coca-Cola company. There are some risks and uncertainties,
our teammate will further talk about the details in the next slides.

P.16 Risk
I’ll be covering why Coca-Cola is a good investment despite certain risks.

The first risk is increasing health consciousness. Consumers are moving away
from sugary drinks and competition from healthier alternatives is growing.

The second risk is supply chain vulnerability and ingredient sourcing

challenges. Global events such as natural disasters and geopolitical tensions
can disrupt supply chains, leading to higher costs and potential delays.
The last risk we focus on is environmental sustainability and plastic waste
management. Regulatory and consumer pressure is increasing on companies
like Coca-Cola.
You can see in the risk matrix that all three risks are rated high in both
likelihood and impact, highlighting their significant potential impact on
operations.
Now, let’s look at how Coca-Cola is proactively addressing these risks
through strategic mitigation measures

P.17 Mitigation
In order to increase health consciousness, Coca-Cola has diversified its
product portfolio. Some numbers to prove the results: Coca-Cola Zero Sugar
sales increased 11% in 2023, reflecting the success of their shift to low-sugar
and no-sugar options.

In response to supply chain vulnerabilities, Coca-Cola focused on localized

sourcing and building strong supplier relationships. Coca-Cola's operating
income increased 4% in 2023, despite costs increasing by about 15% due to
global supply chain disruptions and rising raw material prices.

Finally, in terms of environmental sustainability and plastic waste

management, Coca-Cola has committed to making 100% of its packaging
recyclable by 2030. As of 2023, they have achieved 90% recyclability.

P18. Conclusion
Coca-Cola, a leading global beverage company, has a stable business and
strong cash flow, making it a suitable long-term investment. Holding this
stock is expected to yield consistent dividend returns and capital
appreciation. In conclusion, our team recommends that investors buy shares
of the Coca-Cola Company.