Coca Cola Cost Optimisation, page-8

Coca Cola Amatil AGM 2017 - Chairman, Chairman Elect & Group MD's Address

The Business continued its transformation agenda, including delivering its $100 million cost optimisation program well ahead of schedule. A second $100 million cost optimisation program was announced in 2016 and is underway, with a further $20 million in costs to be removed from the business from 2020 as a result of the changes to our supply chain.

We also announced a $75 million investment in a new warehouse in Richlands, Queensland, along with a further $90 million in a new glass line and additional juice and dairy capacity at that facility. These investments help streamline our national logistics network, modernise our supply chain, with a greater use of technology, and position us for future areas of growth.

Our capital expenditure will be disciplined and tailored to each business. We expect group capex of around $375 million for 2017 and a similar level in 2018 as we progress initiatives to remodel the Australian Beverages supply chain and set the business up for the future.