2005, including a third consecutive year of strong free cash flow* which totaled $717 million, and net income of $613 million, or $1.29 per share, excluding certain items.** However, while these results are in many ways encouraging, they do not reflect the level of growth we know our business can produce, and we will not be satisfied until we achieve both consistency and improvement in our earnings and returns to shareowners.

The primary operating factors behind our 2005 results were a combination of higher and more balanced North American revenue growth and very moderate operating expense growth of only 1 percent.** By successfully managing our operating expenses, we created important operating flexibility as we faced a combination of unprecedented challenges throughout the year, including high cost of goods increases and business disruption from Hurricanes Katrina, Rita, and Wilma, and challenging marketplace and economic conditions in Europe.

CCE Strengthens Commitment to Corporate Responsibility In the fall of 2005, Coca-Cola Enterprises created a Corporate Responsibility and Sustainability Advisory Council led by Chairman and Chief Executive Officer Lowry Kline, and chaired by John Downs, senior vice president of public affairs and communications. This council, comprised of management from all business functions, will help ensure that we achieve our business goals and deliver value to our shareowners in a way that is responsible, minimizes our impact on the environment, and supports our communities. We are putting in place processes and measures to track our progress more rigorously. This spring, we will publish our first corporate responsibility and sustainability review, detailing our opportunities and accomplishments in the areas of corporate governance, workplace, marketplace, community, and environment. This review will be guided by the Sustainability Reporting Guidelines of the Global Reporting Initiative. The corporate responsibility and sustainability publication will also detail the incredible efforts of Coca-Cola Enterprises employees who worked tirelessly in support of relief efforts following the devastation of Hurricanes Katrina, Rita, and Wilma on the U.S. Gulf Coast. Our response to these disasters is a clear demonstration of our commitment to our communities and employees. Along with The Coca-Cola Company and other Coca-Cola bottlers, we will continue to play a role in the recovery and restoration of these areas. To request a copy of our corporate responsibility and sustainability review, e-mail us at: crsreview@na.cokecce.com. Our Seven Values… We Aspire To Live By These Values Every Day INTEGRITY. Always doing what is right. PASSION. Driven to be the very best in what we do and how we do it. SERVICE. Exceeding the expectations of our customers, our consumers, our communities, and our people. QUALITY. Excellence every time. RESULTS. Winning as a team in the workplace and in the marketplace. RESPECT. Listening, understanding, and appreciating others. FUN. Enjoying what we do every day.

Hurricanes Create Sales, Cost Challenges
In North America, for example, our volume increase of 1 percent was coupled with net pricing per case growth of 3 percent,** a testament to the ability of our people to excel each day in the marketplace. The hurricanes’ detrimental effect on our business results was significant due to lost sales in high per capita consumption markets such as New Orleans and substantial cost increases, including PET packaging costs. The storms also caused significant property and equipment damage that necessitated charges of $28 million.

Our European business performed below our long-term objectives in 2005, with results adversely affected by softness of the carbonated soft drink (CSD) category and a difficult trade environment, characterized by retail pricing pressure and the growth of hard discounters. These structural challenges led to a volume decline of 2 percent for the year, while we maintained our market share and grew net pricing per case 1 percent.**

Later in this report, Shaun Higgins, president of our European group, will share more details about this challenging but important year for our European operations, and Terry Marks, president of our North American group, will review our key North American initiatives for 2006 and the benefits of the successful effort last year to redesign the structure of our North American organization.

As we move into 2006, we do so with expectations for a year of improved financial performance. We believe Europe will achieve moderate growth with improving volume and pricing, while North America will again generate a favorable balance of positive volume and pricing. We expect more moderate cost of goods increases, and we will continue to control our operating expenses, benefiting from the North American reorganization, local restructuring projects in Europe, and realizing ongoing savings from institutionalizing operating expense initiatives implemented in 2004 and 2005.

We believe this combination of revenue growth and cost control discipline will generate significantly better operating income results this year and free cash flow of approximately $700 million. We have committed to expand our use of free cash flow in 2006 by increasing our dividend 50 percent, as approved by our Board of Directors in December, and continuing to improve our overall capital structure by reducing our total debt.

Given our expectations for 2006 and our view of the overall market environment, we are optimistic about our future and our ability to grow long-term value for our shareowners. An important factor in this optimism is the effective strength of the partnership we have with The Coca-Cola Company and the renewed energy and creativity around marketing and product development. Most importantly, we are jointly improving the way we work across every aspect of our business, from revenue management, to brand development, to ongoing efficiency initiatives, and to the methods we use to serve our customers. These improvements are expanding our system’s capabilities and strengthening our ability to drive sustained, profitable growth at CCE.

A Management Transition
I want to thank John Alm for his long and dedicated service to Coca-Cola Enterprises. John left Coca-Cola Enterprises at the end of 2005, capping a career in the Coca-Cola system that spanned 25 years. He held vital roles in this company since 1991, when the Johnston Coca-Cola Bottling Group merged with CCE to form the basis of the company we have today. First as chief financial officer, and later as chief operating officer and chief executive officer, John provided insight, passion, and strong leadership to Coca-Cola Enterprises throughout his tenure.

With John’s departure, I have assumed the responsibilities of chief executive officer as our board of directors works to complete a comprehensive search for a new CEO. This search will not, in any way, hinder or postpone our initiatives to improve the level of growth in our business. I have a high level of confidence in the skill, leadership, and expertise of both Terry Marks and Shaun Higgins, who are among the industry’s most respected operators. Together with their team of experienced field managers, they have created and implemented solid and achievable business plans for 2006.

Lowry Kline
Chairman and
Chief Executive Officer

* Defined as cash flow from operations less capital spending.

** Please refer to page 72 for reconciliation of comparable operating information.