Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — FY2021 Earnings Presentation
35 slides from Coca-cola Bottlers Japan's earnings presentation, Feb 14, 2022
Slide 1: Full-year 2021 Earnings Presentation
Full-year 2021 Earnings Presentation February 14, 2022 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & CFO (Posted to CCBJH website on February 10, 2022)
Slide 2: Forward-looking statements
Forward-looking statements The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the management of Coca-Cola Bottlers Japan Holdings Inc. (CCBJH or Company) in view of data obtained as of the date this material was released. These fo
Slide 3: Full-year earnings presentation agenda
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Full-year earnings presentation Overview and Situational Analysis Full-year 2021 Results and 2022 Outlook Q&A 3
Slide 4: Overview and Situational Analysis
Overview and Situational Analysis
Slide 5: 2021 Overview – Business Environment
2021 Overview – Business Environment Q4 sales volume and business income grew YoY and exceeded guidance, as traffic improved after lifting of state of emergency Key initiatives in 2021 showed results, focusing on what we can control 2021 full-year business performance was heavily impacted by COVID-1
Slide 6: Financial Highlights
Financial Highlights Full-year volume growth of +2% YoY, with multiple new products contributing. Full-year revenue down -1% YoY with changing consumer spending patterns due to COVID-19 impacting channel and package mix, and lower revenue per case Value share continued to grow in the vending channel
Slide 7: Full-year 2021 Results
Full-year 2021 Results y, Ti
Slide 8: Full-year 2021 results vs. 2020
Full-year 2021 results vs. 2020 Continued COVID-19 impact; slow volume recovery Unit: Million JPY 2021 2020 2021 YoY Actual Actual Plan Continuing Operations (Beverage Business) Revenue 785,837 791,956 -0.8% 782,600 Beverage Sales Volume (Million Cases) 468 458 +2% 467 NARTD (Non-alcoholic ready to
Slide 9: Full-year 2021 drivers of Business Income
Full-year 2021 drivers of Business Income Volume recovery not enough to offset pricing and commodity pressure Full-year 2020 Volume, Price DME Commodity Manufacturing Others Full-year 2021 Actual & Mix* (Direct Marketing Actual Expense, fixed only) 0.2 • Resumed marketing -10.5 investment restrained
Slide 10: NARTD beverage volume performance by channel
NARTD beverage volume performance by channel Despite new products, slow traffic recovery & bad weather impacted, volume recovery +2% Full-year total volume +2% SM, D&D: Large size PET growth in water, sparkling, NST By channel benefitting from rise in at home consumption Wholesale CVS: Strategically
Slide 11: NARTD beverage volume performance by category
NARTD beverage volume performance by category Full-year total volume +2% By category Sparkling: 500ml PET volume was impacted by bad weather in summer. Premium Fanta series Vs. PY Volume contributed and large PET grew 5% 7% Sparkling Flat NST: New products such as Yakan Barley Tea from 26% Non-sugar
Slide 12: Building a foundation for value share growth
Building a foundation for value share growth Vending, SM, D&D market share growth on annual basis Full-year Market Share Value Volume OTC Retail Price Vs. Market (Jan. to Dec., vs. PY, PP) Vs. PY (Jan. to Dec., JPY per bottle) Average VM +4.2 +4.3 Small PET +4.6 -2.1 OTC -0.7 -0.5 Large PET +21.0 -4
Slide 13: Priority on good stewards of capital
Priority on good stewards of capital Focus on shareholder value creation Shareholder value creation Balance sheet and Dividends Capex and depreciation cash flow - Resumed stable dividend - Solid financial position: - Continued restraint in payout despite challenging 56.8% equity ratio at end of purc
Slide 14: 2022 Outlook
2022 Outlook yi
Slide 15: 2022 Operating Environment
2022 Operating Environment Omicron strain rapidly rising, reintroducing uncertainty COVID-19 cases on the rise again Number of new cases, severe patients 120,000 # of new cases # of severe patients 1,400 ✓ Omicron strain has once again brought back 100,000 1,200 uncertainty in the market. Expecting
Slide 16: 2022 Targets
2022 Targets Focusing on what we can control Market share Recurring cost savings Capex Target Target Target 5 B yen 46 B yen Value share growth in vending Control capex and monitor Transformation continues to Balanced approach in OTC with market environment for deliver savings sustainable pricing in
Slide 17: Marketing and branding update
Marketing and branding update
Slide 18: Update from Coca-Cola (Japan) Company, Limited
Update from Coca-Cola (Japan) Company, Limited 2021 FY Review 2022 Q1 Initiative Highlights 18
Slide 19: 2021 FY Review
2021 FY Review Successfully gained KO NARTD value share and Weekly+ purchasers ※1 (+690K people to total 10 mil. people) in tough market condition Successful Innovations Coke ON expansion Cultural Leadership 13.1% ※2 100mil+ ※3 ※1 value share bottles VM value share +3.9pts., ※7 World Without Waste (
Slide 20: 2022 Marketing Strategy
2022 Marketing Strategy Strengthen the core & grow year-2 and selective innovations with continuously flexible and timely actions PIVOT TO CORE FEWER, BIGGER STAY@HOME コアへの原点回帰 INNOVATIONS 家庭内需要の獲得 選択と集中 20
Slide 21: 2022 Q1 Initiative Highlights
2022 Q1 Initiative Highlights Drive core growth for Coke, Georgia, COSTA and Ayataka & Tap into Non-Alcohol category as a white space Coca-Cola TM Georgia TM & COSTA AR Fortune bottle from Jan. & Coke & Meal from Feb. New campaign “The coffee that makes you glow” under Global “Real Magic” platform f
Slide 22: 2022 Key collaboration points with CCBJH
2022 Key collaboration points with CCBJH Further accelerate our strengths & improve growth opportunities FURTHER ACCELERATE ROI OPTIMIZATION WIN IN IN-STORE EXECUTION KO SYSTEM COLLABORATION • System approach to • Revenue growth Strategic Customers • MIX improvement (OTC + Online + HORECA) (Channel/
Slide 23: Areas of Focus & Strategy
Areas of Focus & Strategy y, ;
Slide 24: 2022 Commercial Strategic Pillars
2022 Commercial Strategic Pillars Growth through Customer Management & Expand Portfolio Edge Margin Focused Pricing Vending Channel Execution Excellence High quality innovation to Targeted marketing Revenue recovery by per Strengthen customer drive growth in volume / investments focused on machine g
Slide 25: Pricing & Marketing Investment Strategy for 2022
Pricing & Marketing Investment Strategy for 2022 Strengthen profit base for sustainable growth Price revision announced. Enhancing foundation for sustainable growth COVID-19 impact and competition expected to remain intense, price revision will be combined with strategic marketing investments Implem
Slide 26: Growth through Vending Channel
Growth through Vending Channel Vending business as a key driver for returning to growth trajectory Initiatives for Growth Leveraging Coke ON Further Operation Optimization Improve per-machine sales Enhance customer engagement Stable operation of the new Focus on core with Coke ON business model Pric
Slide 27: Solid Supply Chain Network for Sustainable Growth
Solid Supply Chain Network for Sustainable Growth Take measures for short-term challenges and keep driving transformation Improving commercial and supply chain collaboration and standardizing operation with DX Logistics network optimization leveraging Mega DC progressing as planned. Working towards
Slide 28: ESG Initiatives
ESG Initiatives Steady progress in creating shared value Towards “World Without Waste” Innovation and diversity Achieved 40% use of sustainable 4.5-star in Nikkei Smart Work materials, including "bottle to Management Survey for bottle,” ahead of the industry productivity revolution On track towards
Slide 29: Staying true to our Mission, Vision & Value
Staying true to our Mission, Vision & Value 29
Slide 30: Key Takeaways
Key Takeaways yy
Slide 31: Key Takeaways
Key Takeaways While 2021 was a challenging year, key initiatives we focused on are delivering results. Performance in Q4 makes us confident that we can grow when the market recovers Omicron has reintroduced uncertainly into the market. In uncertain business and a competitive environment, cost headwi
Slide 32: Citta
Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 33: Appendix
Appendix Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 34: NARTD channel/category/package volume performance
NARTD channel/category/package volume performance Q4 QTD 2021 (Oct to Dec) volume: +3% By package By channel vs PY Volume Wholesale Full-year 2021 Vs. PY Volume revenue 5% S-PET +3% 4% 1% per case 2% M-PET +89% Supermarket (SM) +1% -11Yen 8% L-PET +6% 5% 17% 24% Drug & Discounter (D&D) +8% -36Yen Ca
Slide 35: THANK YOU
THANK YOU Investor Relations Coca-Cola Bottlers Japan Holdings Inc. ir@ccbji.co.jp https://en.ccbj-holdings.com/ir/
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