Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola West Company — FY2016 Earnings Presentation
50 slides from Coca-cola Bottlers Japan's earnings presentation, Feb 7, 2017
Slide 1: Results briefing for the Fiscal Year ended December 2016
Results briefing for the Fiscal Year ended December 2016 February 7, 2017 Coca-Cola West Company, Limited (2579) [Contact] Planning Department (IR team) TEL 092-641-8774 FAX 092-632-4304 ［URL］ http://www.ccwest.co.jp/ ［E-mail］ koji-nakagawa@ccwest.co.jp
Slide 2: Agenda
Agenda I. 2016 Review and summary of financial results II. 2017 Business Plan III. Commercial strategies [Reference] Increase/decrease in full-year financial results (Jan-Dec) Financial results of Q4 (Oct-Dec) Trend of OTC market share Mix by brand/by channel Sales update on vending machines by segm
Slide 3: I. 2016 Review and summary of financial results
I. 2016 Review and summary of financial results 2
Slide 4: Sales status of FY2016 ended Dec (Jan-Dec)
Coca-Cola business Sales status of FY2016 ended Dec (Jan-Dec) ■ Jan-Dec accumulative volume was 6.8% positive (including Shikoku CCBC). Vs. PY CCW delivered 3.0% positive volume for Jan-Dec YTD. ■ Value share grew ahead of the growth of volume share. [Ref] Vs. PY Vs. Plan 2016 Actual PY*1 Plan*2 (Un
Slide 5: Sales volume by channel
Coca-Cola business Sales volume by channel ■ Positive results of Supermarket and Convenience Store led the overall growth. → Sales of new products launched as highly value-added commodities contributed. Vs. PY ■ Sales volume of highly profitable Vending finished at the level of prior year. → Volume
Slide 6: Sales volume by brand
Coca-Cola business Sales volume by brand ■ Growth of core 8 brands led the overall volume increase (core 8 brands: ＋5.3%) ■ By brand, Coca-Cola brand, Georgia, Ayataka and I Lohas made remarkable contributions. <Coca-Cola, Coca-Cola Zero> Rollout of promotions linked with the Rio Olympics and introd
Slide 7: Financial results of FY2016 ended Dec (Jan-Dec) - Consolidated
Consolidated Financial results of FY2016 ended Dec (Jan-Dec) -Consolidated ■ Consolidated operating profit closed at 21.1 Billion JPY. (+6.8 Billion JPY Vs. PY) ■ On the other hand, Current net profits resulted in 5.2 Billion JPY. (-4.7 Billion JPY Vs. PY) → 6.7 Billion JPY was booked as extraordina
Slide 8: Key drivers of OP growth (Vs. PY)
Consolidated Financial results of FY2016 ended Dec (Jan-Dec)- Key drivers of OP growth (Vs. PY) Coca-Cola business raised operating profits by 7.1 billion JPY from prior year. In addition to marginal profit increases of 1.5 billion JPY driven by volume growth in Chain store, there was a profit contr
Slide 9: II. 2017 Business Plan
II. 2017 Business Plan 8
Slide 10: 2017 Business Plan we disclose this time
Consolidated 2017 Business Plan we disclose this time ■ The performance plan we disclose this time is an estimate which does not reflect a business integration with Coca-Cola East Japan Co., Ltd. (CCEJ). ■ Plans for a new company “Coca-Cola Bottlers Japan Inc. (CCBJI)” is under development in Integr
Slide 11: Full-year (Jan-Dec) - Performance Plan (Estimate)
Consolidated Full-year (Jan-Dec) － Performance Plan (Estimate) ■ Plan for growth in Revenue, Operating income and Current net income from prior year (not reflecting the business integration). Consolidated By business [Coca-Cola business (CCW+Shikoku)] (Unit: K c/s, MM JPY, %) (Unit: MM JPY, %) Vs. P
Slide 12: Healthcare & skincare business plan
Healthcare & skincare business Healthcare & skincare business plan ■ Plan to deliver operating profit of 3.5 Billion JPY in 2017 (700 MM JPY Vs. PY). Vs. PY FOSHU -600 MM ： Sales of Nippon Supplement’s products terminated in Sep last year. New product JPY launches scheduled this year. Healthcare +90
Slide 13: 2017 strategies
Healthcare & skincare business 2017 strategies ■ Strive to strengthen existing businesses by introducing new products including foods with functional claim and by reinforcing the home shopping channels. Healthcare products Home shopping channels Launch new products (with Sarcopenia Optimize contents
Slide 14: Q1 (Jan-Mar) - Performance Plan
Consolidated Q1 (Jan-Mar) － Performance Plan ■ Aim to deliver Q1 consolidated operating profit of 2.3 billion JPY, up by 100 MM JPY from PY. Consolidated By business [Coca-Cola business (CCW+Shikoku)] (Unit: K c/s, MM JPY, %) (Unit: MM JPY, %) Vs. PY Vs. PY 2017 Q1 Plan 2017 Q1 Plan Diff Diff % Diff
Slide 15: Q1 (Jan-Mar) - Factors of Operating profit increase
Consolidated Q1 (Jan-Mar) –Factors of Operating profit increase (Vs. PY) Aim to deliver consolidated operating profit of 2.3 billion JPY (+100 MM JPY Vs. PY) While projecting negative profits of -200 MM JPY from prior year associated with changes of channel mix, strive to deliver steady profit growt
Slide 16: III. Coca-Cola business commercial strategies
III. Coca-Cola business commercial strategies 15
Slide 17: Volume plan for FY2017 ending Dec (Jan-Dec)
Coca-Cola business Volume plan for FY2017 ending Dec (Jan-Dec) ■ While incorporating rebound from last year’s good weather, we project positive volume Vs. PY. → By channel, Supermarket leads overall volume growth. → By brand, Georgia, Ayataka and I Lohas make contributions. Volume plan by channel Vo
Slide 18: Basic strategies
Coca-Cola business Basic strategies Growth Efficiency 1. Enhance profitability by ensured reinforcing existing business 3. Advance value chain processes ① Advance supply process behind growth and implement ① Reinforce the existing fields new technologies ②Challenge new markets with customer-centric
Slide 19: Basic strategies
Coca-Cola business Basic strategies Growth Efficiency 1. Enhance profitability by ensured reinforcing existing business 3. Advance value chain processes ① Advance supply process behind growth and implement ① Reinforce the existing fields new technologies ②Challenge new markets with customer-centric
Slide 20: Enhance profitability by reinforcing existing business - Strengthen existing fields
Coca-Cola business Enhance profitability by ensured reinforcing existing business-Strengthen existing fields ■ Ensure sales methods not depending on prices Chain store Vending Improve how we offer main brands Ensure optimum portfolio according to ・Raise per case revenue of Large PET by locations str
Slide 21: Enhance profitability by reinforcing existing business - Strengthen existing fields
Coca-Cola business Enhance profitability by ensured reinforcing existing business-Strengthen existing fields ■ Expand more valuable PoC by taking advantage of new products and sales equipment. Chain store Vending Expand regular (handling # of) products Capture prime locations (new placement) Maintai
Slide 22: Challenge new markets with customer-centric perspective
Coca-Cola business Enhance profitability by ensured reinforcement of the existing-Challenge new markets with customer-centric perspective ■ Introduce high revenue per case, high value-added products. ＋ ＝ High value-added Brand in total Existing products products Add higher Enhance overall Maintain/r
Slide 23: Expand & evolve RGM
Coca-Cola business Enhance profitability by ensured reinforcing existing business-Expand & evolve RGM ■ Newly set and operate “Average per case guard rail”. Set “Average per case guard rail” by combining the 3 elements Key brands Customers’ scale Coca-Cola Key packages お得意さまの売上げ規模 of sales プラチナカスタマー
Slide 24: Basic strategies
Coca-Cola business Basic strategies Growth Efficiency 1. Enhance profitability by ensured reinforcing existing business 3. Advance value chain processes ① Advance supply process behind growth and implement ① Reinforce the existing fields new technologies ②Challenge new markets with customer-centric
Slide 25: Invest right capital (people, goods, cash)
Coca-Cola business Invest right capital (people, goods, cash) ■ Enhance investment efficiency of promotional costs and sales equipment. Chain store Vending Conduct promotions being conscious of ROI Improve unprofitable locations ・Make investments to urge customers to take initiatives (volume, revenu
Slide 26: Basic strategies
Coca-Cola business Basic strategies Growth Efficiency 1. Enhance profitability by ensured reinforcing existing business 3. Advance value chain processes ① Advance supply process behind growth and implement ① Reinforce the existing fields new technologies ②Challenge new markets with customer-centric
Slide 27: Drive CSV (Creating Shared Value)
Coca-Cola business Drive CSV (Creating Shared Value) ■ Conduct activities with “Health”, “Environment” and “Communities” as priority tasks of CSV. Priority tasks in CSV Sales activities Food shortages ・ Extension of product lineup and sales expansion of FOSHU Health Aging measures and functionally c
Slide 28: Drive CSV (Creating Shared Value)
Coca-Cola business Drive CSV (Creating Shared Value) ■ Contribute to local communities & society by fusing VM with new technologies. “CokeOn” enabled vending machines New technology Next generation marketing platform using Beacon developed by unerry Ｂｅａｃｏｎ Ｂａｎｋ Optimize portfolio based on Contribute
Slide 29: [Reference]
[Reference] 28
Slide 30: Financial results of FY2016 - Key drivers (Vs. PY)
Financial results of FY2016 ended Dec (Jan-Dec) -Key drivers (Vs. PY) (Unit: 100MM JPY) PY Actual* 2016 Actual Diff Key drivers Diff ・Coca-Cola Business (CCW＋Shikoku CCBC) +207.5 Revenue 4,404 4,604 +199 ・Healthcare & Skincare Business -7.7 ・Coca-Cola Business (CCW＋Shikoku CCBC) +154.0 Gross profit
Slide 31: Financial results of FY2016 - Key drivers (Vs. Plan)
Financial results of FY2016 ended Dec (Jan-Dec) -Key drivers (Vs. Plan) (Unit: 100MM JPY) Plan* 2016 Actual Diff Key drivers Diff ・Coca-Cola Business (CCW＋Shikoku CCBC) +27.9 Revenue 4,602 4,604 +2 ・Healthcare & Skincare Business -25.3 ・Coca-Cola Business (CCW＋Shikoku CCBC) +11.9 Gross profit 2,398
Slide 32: Financial results of Q4 (Oct-Dec)
Financial results of Q4 (Oct-Dec) (Unit: MM JPY, %) Vs. PY Vs. Plan 2016 Q4 Actual 2015 Q4 Actual * Plan Diff Diff % Diff Diff % Revenue 106,745 110,814 -4,069 -3.7 108,900 -2,154 -2.0 Coca-Cola Business 99,132 102,372 -3,239 -3.2 99,700 -567 -0.6 Hea l thca re & Ski nca re 7,612 8,442 -829 -9.8 9,2
Slide 33: Trend of OTC market share (excl. VM)
Trend of OTC market share (excl. VM) 100％ (Unit: %, pts) Other 31.7 31.5 33.0 32.3 32.1 Company D Company C 8.0 8.3 7.7 7.5 8.5 +0.5 9.9 9.7 10.3 10.7 10.2 +0.3 Company B 10.9 11.0 11.1 11.5 11.3 +0.4 Company A 16.2 16.3 15.4 15.4 16.3 +0.1 CCW 23.3 23.2 22.5 22.6 21.6 -1.7 2015 Q4 2015年Q4 Q1 Q1 Q2
Slide 34: 2016 (Jan-Dec) - Mix by brand/channel
2016 (Jan – Dec) – Mix by brand/channel 2015* 2016 Others I LOHAS 35％ 29％ 28％ Ayataka 8％ 8％ Aquarius 7％ 8％ 9％ Brand Soukenbicha 9％ 7％ 6％ 4％ 4％ 9％ Georgia 5％ Fanta 31％ 32％ 21％ Coca-Cola Zero 4％ 3％ 3％ Coca-Cola 3％ 3％ 3％ 7％ 7％ 7％ 販売数量 Sales Vol. 売上高 Revenue 売上総利益 Gross profit 販売数量 販売数量 Sales Vol. 売上高 売
Slide 35: Q4 (Oct-Dec) - Mix by brand/channel
Q4 (Oct – Dec) – Mix by brand/channel 2015* 2016 Others I LOHAS 29％ 29％ 38％ Ayataka 7％ 7％ Aquarius Brand 6％ 8％ 9％ Soukenbicha 4％ 4％ 9％ 4％ 6％ 4％ Georgia 4％ Fanta 23％ 35％ 35％ Coca-Cola Zero Coca-Cola 4％ 3％ 3％ 3％ 3％ 3％ 7％ 7％ 6％ 販売数量 Sales Vol. 売上高 Revenue 売上総利益 Gross profit 販売数量 販売数量 Sales Vol. 売上高 売上高
Slide 36: Sales update on vending machines by segment
Sales update on vending machines by segment Vending machine full service CAN VPM* Vs. PY 【CCW area】 Vs. PY (%) Ja n Feb Ma r Apr Ma y Jun Jul Aug Sep Oct Nov Dec Total At work (office etc) -2.2 +2.1 +0.0 -2.5 -1.6 -1.4 -1.3 +4.4 +0.6 -3.8 -0.7 -5.4 -1.0 At work (plant etc) -2.8 +1.9 +1.8 -3.0 -2.5 -
Slide 37: FY2016 Sales Volume by package
FY2016 ended Dec (Jan-Dec) － Sales Volume by package [Ref] Vs. PY Vs. Plan 2016 Actual (Unit: K c/s, %) Diff Diff % Diff Diff % Small (less than 850 ml) 64,755 +3,625 +5.9 +108 +0.2 Medium (less than 1,500 ml) 2,967 +1,465 +97.5 +456 +18.2 PET Large (1,500 ml or more) 45,632 +628 +1.4 -135 -0.3 Tota
Slide 38: 2016 Q4 Sales Volume by channel
2016 Q4 (Oct-Dec) － Sales Volume by channel [Ref] Vs. PY Vs. Plan Q4 Actual (Unit: K c/s, %) Diff Diff % Diff Diff % Supermarket/Drug/Discounter 14,320 -632 -4.2 -394 -2.7 Convenience store 6,946 -161 -2.3 +523 +8.1 Chain store total 21,265 -793 -3.6 +129 +0.6 Vending 15,904 -683 -4.1 -577 -3.5 Reta
Slide 39: 2016 Q4 Sales Volume by brand
2016 Q4 (Oct-Dec) － Sales Volume by brand [Ref] Vs. PY*2 Vs. Plan Q4 Actual (Unit: K c/s, %) Diff Diff % Diff Diff % Coca-Cola 3,629 -6 -0.2 +83 +2.3 Coca-Cola Zero 1,534 -7 -0.5 +13 +0.9 Fanta 1,752 -74 -4.0 +14 +0.8 Georgia 11,867 -180 -1.5 -160 -1.3 Core 8 Sokenbicha 2,243 -35 -1.5 -138 -5.8 Aqua
Slide 40: 2016 Q4 Sales Volume by package
2016 Q4 (Oct-Dec) － Sales Volume by package [Ref] Vs. PY Vs. Plan Q4 Actual (Unit: K c/s, %) Diff Diff % Diff Diff % Small (less than 850 ml) 14,495 -174 -1.2 -170 -1.2 Medium (less than 1,500 ml) 583 +254 +77.4 +113 +23.9 PET Large (1,500 ml or more) 9,133 -888 -8.9 -488 -5.1 Total 24,212 -808 -3.2
Slide 41: FY2017 Sales Volume Plan by package
FY2017 ending Dec (Jan-Dec) － Sales Volume Plan by package Vs. PY 2017 Plan (Unit: K c/s, %) Diff Diff % Small (less than 850 ml) 67,313 +2,558 +3.9 Medium (less than 1,500 ml) 3,747 +780 +26.3 PET Large (1,500 ml or more) 44,565 -1,067 -2.3 Total 115,625 +2,271 +2.0 Can (incl. bottle can) 53,615 -3
Slide 42: FY2017 Q1 Sales Volume Plan by channel
FY2017 Q1 (Jan-Mar) － Sales Volume Plan by channel Vs. PY Q1 Plan (Unit: K c/s, %) Diff Diff % Supermarket/Drug/Discounter 13,519 +501 +3.9 Convenience store 6,527 -143 -2.1 Chain store total 20,046 +359 +1.8 Vending 14,912 -628 -4.0 Retail 2,126 -89 -4.0 Food Service 5,630 +139 +2.5 Others 4,097 +5
Slide 43: FY2017 Q1 Sales Volume Plan by brand
FY2017 Q1 (Jan-Mar) － Sales Volume Plan by brand Vs. PY Q1 Plan (Unit: K c/s, %) Diff Diff % Coca-Cola 3,045 -72 -2.3 Coca-Cola Zero 1,342 -64 -4.5 Fanta 1,649 +128 +8.4 Georgia 11,798 +126 +1.1 Core 8 Sokenbicha 1,861 -3 -0.2 Aquarius 2,616 +15 +0.6 Ayataka 4,143 +329 +8.6 I LOHAS 3,278 +194 +6.3 S
Slide 44: FY2017 Q1 Sales Volume Plan by package
FY2017 Q1 (Jan-Mar) － Sales Volume Plan by package Vs. PY Q1 Plan (Unit: K c/s, %) Diff Diff % Small (less than 850 ml) 13,678 +401 +3.0 Medium (less than 1,500 ml) 632 +263 +71.5 PET Large (1,500 ml or more) 8,315 -132 -1.6 Total 22,625 +532 +2.4 Can (incl. bottle can) 12,211 -379 -3.0 Others 3,094
Slide 45: Performance Trend
Performance Trend (Unit: MM JPY) 2017 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Estimate Revenue 164,731 207,827 226,111 247,737 240,825 253,248 245,874 327,821 409,521 395,556 369,698 375,764 399,717 386,637 431,711 424,406 440,476 460,455 462,500 Ope
Slide 46: Managerial KPI trend
Managerial KPI trend <Operating profits/Operating profit ratio> <Net asset/capital ratio> （％） (MM JPY) (MM JPY) （％） Operating profits Operating profit ratio Net asset Capital ratio 25,000 10.0 300,000 100 21,143 257,936 254,140 260,878 261,173 20,000 8.0 250,000 231,056 15,927 90 13,463 14,262 200,0
Slide 47: Coca-Cola System in Japan - Capital Relationship
Coca-Cola System in Japan – Capital Relationship Investments with figures indicate %; ( ) in total by CCW+ Shikoku (As of Jan 1, 2017) Joint companies of TCCC/CCJC ⑤ and bottlers Coca-Cola Integrated Coca-Cola 21.1％ 3.7％ Business Systems West Co., Co., Ltd. (CCIBS) （26.1％） ⑥ Ltd. (CCW) ① The 100％ Co
Slide 48: Coca-Cola affiliated companies and their roles
Coca-Cola affiliated companies and their roles 1. Coca-Cola West Co., Ltd. (CCW) 5. Coca-Cola bottlers (CCBCs) Coca-Cola West Japan (CCWJ) was established in 1999 by merging There are 7 bottlers in Japan responsible for manufacturing and Kitakyushu CCBC and Sanyo CCBC. CCWJ acquired ownership of Mik
Slide 49: Glossary
Glossary Term Explanation Business (segment) ・Coca-Cola business (soft drink business) Business to manufacture and sell soft drink beverages including Coca-Cola ・Healthcare & skincare business Business to manufacture and sell health food and cosmetics operated by Q'sai and their 5 subsidiaries Chann
Slide 50: Forward-looking statement
Forward-looking statement The plans, performance forecasts, and strategies appearing in this material are based on the judgment of the management in view of data obtained as of the date this material was released. Please note that these forecasts may differ materially from actual performance due to
Coca-Cola West Company — FY2016 Earnings Presentation on 6ix