Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola West Company — Q1 2016 Earnings Presentation
40 slides from Coca-cola Bottlers Japan's earnings presentation, Apr 27, 2016
Slide 1: Results briefing for the 1st quarter of Fiscal Year ending December 2016
Results briefing for the 1st quarter of Fiscal Year ending December 2016 April 27, 2016 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. Account settlement for Q1 II. Activity Plan for Q2 [Reference] Trend of OTC market share Mix by brand/by channel Sales update on vending machines by channel Q1 Actual sales volume (by channel and by package) Q2 Volume target Performance trend / managerial KPI trend Coca-Cola System in Japa
Slide 3: I. Account settlement for the 1st quarter
I. Account settlement for the 1st quarter 2
Slide 4: Q1 Sales Volume (Jan-Mar)
Coca-Cola business Q1 Sales Volume (Jan-Mar) Vs. Plan ・ Sales volume from Jan to March closed with positive growth of 3.3%. ・ Sales volume from Jan to March turned positive by 14.1% (including Shikoku CCBC). Vs. PY ・ CCW managed to turn sales volume positive by 5.2% during Jan-Mar. [Sales volume] Vs
Slide 5: Sales volume by channel
Coca-Cola business Sales volume by channel Vs. Plan ・ All key channels finished exceeding the volume plans. ・ Supermarket turned positive by 7% with new product launches and non-price promotions. ・ Convenience Store made a 2-digit growth with sales contribution of new product launches Vs. PY includi
Slide 6: Status of RGM initiatives in Supermarket
Coca-Cola business Status of RGM initiatives in Supermarket ■ With steady progress of RGM initiatives in Q1, revenue per-case has been on a recovery trend from last year. Ensured sales activities based on Ensured value appeal Non-price promotions price guideline upon new launches ・Evolve price guide
Slide 7: Sales volume by package
Coca-Cola business Sales volume by package Vs. Plan ・ All packages except for Syrup and Powder exceeded the plans. ・ Sales volume of highly profitable SS PET outgrew LS PET. Vs. PY ・ Sales volume of CAN turned positive from last year with the contribution of bottle CAN. Vs. Plan Vs. PY* Q1 actual (u
Slide 8: Sales volume by brand
Coca-Cola business Sales volume by brand ・ Coca-Cola and Coca-Cola Zero exceeded the plans thanks to reinforced activities aligned Vs. Plan with Global Campaign. ・ Georgia, Ayataka and I Lohas steadily grew with new products. ・Sales from jointly developed products with customers launched last year a
Slide 9: Q1 Settlement (Jan-Mar)
Consolidated Q1 Settlement (Jan-Mar) ■ Consolidated operating profits rose by 3.4 billion JPY from last year, outperforming 2.5 billion JPY from the plan. (unit: MM JPY, %) Vs. Plan Vs. PY* 2016 Q1 actual Plan 2015 actual Diff Diff % Diff Diff % Revenue 100,545 97,100 +3,445 +3.5 91,116 +9,429 +10.3
Slide 10: Q1 Settlement (Jan-Mar) - Variance factors (V. Plan)
Consolidated Q1 Settlement (Jan-Mar)－ Variance factors(V. Plan) (Unit: 100MM JPY) Plan Q1 actual Diff Key factors Diff ・Coca-Cola Business (CCW＋Shikoku CCBC) +35.8 Revenue 971 1,005 +34 ・Healthcare & Skincare Business -1.3 ・Coca-Cola Business (CCW＋Shikoku CCBC) +16.0 Gross profit 503 520 +17 ・Health
Slide 11: Drivers of operating profit increase (V. Plan)
Consolidated Q1 Settlement (Jan-Mar) －Drivers of operating profit increase(V. Plan) Operating profit of Coca-Cola business was closed exceeding the plan by 2.1 billion JPY. In addition to the positive growth of marginal profit by 800 MM JPY thanks to sales volume exceeding the plan, productivity enh
Slide 12: Q1 Settlement (Jan-Mar) - Variance factors (V. PY)
Consolidated Q1 Settlement (Jan-Mar)－ Variance factors(V. PY) (Unit: 100MM JPY) PY actual* Q1 actual Diff Key factors Diff ・Coca-Cola Business (CCW＋Shikoku CCBC) +94.0 Revenue 911 1,005 +94 ・Healthcare & Skincare Business +0.2 ・Coca-Cola Business (CCW＋Shikoku CCBC) +57.7 Gross profit 461 520 +58 ・He
Slide 13: Drivers of operating profit increase (V. PY)
Consolidated Q1 Settlement (Jan-Mar) －Drivers of operating profit increase(V. PY) Operating profit of Coca-Cola business was closed exceeding PY by 3.2 billion JPY. Marginal profit turned positive by 1 billion JPY with the contribution of sales volume growth in Chain store. Furthermore, emergence of
Slide 14: II. Activity Plan for Q2
II. Activity Plan for Q2 13
Slide 15: Q2 (Apr-June) Sales volume plan for each channel
Coca-Cola business Q2 (Apr-June) Sales volume plan for each channel ■ We project Q2 sales volume with＋1.9% V. PY or＋11.1% including Shikoku CCBC. ■ By channel, we forecast sales volume with -3.3% V. PY conservatively estimating Vending market trend while we expect 4.6% growth in Chain store. Vs. PY*
Slide 16: Commercial strategies - RGM evolution in supermarket
Coca-Cola business Commercial strategies- RGM evolution in supermarket ■ Enable profitable revenue growth by launching effective new products and attractive non- price promotions, while embedding and evolving commercial activities based on price guideline. WSP increase × Product mix improvement × Sa
Slide 17: Commercial strategies - Transformation of Vending business
Coca-Cola business Commercial strategies-Transformation of Vending business Launch mobile loyalty program (from April 8) → Conduct a promotion to receive a product with accumulated stamps. Q2 plan 24,000 VM (Annual plan：60,000 VM) 専用アプリを Download the 自販機で Purchase a beverage 1本買うたびに Gain a stamp p
Slide 18: Commercial strategies - Transformation of Vending business (profitability)
Coca-Cola business Commercial strategies-Transformation of Vending business Improve unprofitable [Number of withdrawal and unprofitable value improvements] For profitability enhancement locations Q1 Actual Q2 Plan 4,300 VM ＋30 MM JPY 3,000 VM＋60 MM JPY ＋1,500 VM v. Plan ＋10 MM JPY v. Plan (Annual
Slide 19: Q2 (Apr-June) Volume plan by brand
Coca-Cola business Q2 (Apr-June) Volume plan by brand ■ While reinforcing competitive advantage of key brands & categories (Sparkling, coffee, Non sugar tea, Water and Sports), launch new products in a bid to capture new growth opportunities. ※2 Vs. PY Q2 plan (Unit: K cases, %) Diff % Coca-Cola 4,0
Slide 20: Commercial strategies - reinforce brand competitiveness
Coca-Cola business Commercial strategies-Revenue- reinforce brand competitiveness Coca-Cola Brand Georgia ・ Stamp bottle campaign ・ Rejuvenation of brands through extended lineup Cooler bags CAN-shaped The Premium Georgia Cold Georgia Stamp bottle Georgia (supermarket) speakers (vending) Bito (bottl
Slide 21: Healthcare & skincare business
Healthcare & skincare business Healthcare & skincare business ■ There are key products retained in the areas of Healthcare (health foods) & skincare (cosmetics). ■ Products from both areas have been deployed particularly through online sales (approximately 90% of revenue come from online sales chann
Slide 22: Commercial strategies
Healthcare & skincare business Commercial strategies ■ Healthcare products: While revising contents of online programs, move forward preparations for the launch of functionally-labeled foods. ■ Skincare products: Strengthen the lineup in the growing skincare market. Healthcare products Skincare prod
Slide 23: Q2 (Apr-June) - Performance forecast
Consolidated Q2 (Apr-June)- Performance forecast ■ We project Q2 performances with revenue & operating profit gains vs. PY. Consolidated Business specific (unit: MM JPY, %) ［Coca-Cola business(CCW+ Shikoku CCBC)］ (unit: K c/s, MM JPY, %) Vs. PY Q2 plan Vs. PY Diff Diff % Q2 plan Diff Diff % Revenue
Slide 24: Q2 Drivers for operating profit increase (V. PY)
Consolidated Q2 (Apr-June)-Drivers for operating profit increase(V. PY) Aim to deliver consolidated operating profit of 4.8 billion JPY, up by 1.1 b JPY v. PY. Sales related ＋200 MM JPY: Expect profit contributions from revenue growth in Chain store and profitability improvement in Vending. SCM
Slide 25: Establishment of CQ Ventures
Consolidated Establishment of CQ Ventures ■ CQ Ventures Co., Ltd. was newly established on February 29 for developing new products and building new businesses. → Generate new growth opportunities for our group, by strategically leveraging external resources. Areas of investments Healthcare, skincare
Slide 26: Summary
Summary ■ We closed Q1 with consolidated operating profit exceeding the plan by 2.5 billion JPY and by 3.4 billion JPY even v. PY. The good cycle generated in 2015 continues. → RGM initiative in Supermarket as the most critical task and revenue & profit growth initiatives in Vending made steady prog
Slide 27: Impacts from the Kumamoto Earthquake
[Ref] Impacts from the Kumamoto Earthquake (as of April 25) Contribution 27,000 cases were donated to the disaster-hit regions with the help given by Coca- to local Cola (Japan) Co., Ltd. and other bottlers. communities →”Ayataka”, “I Lohas”, “Morinomizudayori” and others While production lines te
Slide 28: References
[References] 27
Slide 29: OTC market share trends (excl. VM)
OTC market share trends (excl. VM) 100% (Unit: %, pts) Other 32.1 31.3 31.1 30.8 31.5 D 7.9 7.4 8.0 +0.3 C 8.0 8.3 9.3 9.8 10.2 10.0 9.7 +0.4 B -0.2 11.2 12.8 12.7 11.7 11.0 A 16.7 16.4 16.2 16.2 16.3 -0.4 CCW 22.7 21.8 22.4 23.3 23.2 +0.5 2015年Q1 2015 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2016 Q1 2016年Q1 ・Values ou
Slide 30: Q1 (Jan-Mar) - Mix by brand/channel
Q1 (Jan – Mar) – Mix by brand/channel 2015年 2015 2016年 2016 Others I LOHAS 30％ 30％ 37％ 29％ 30％ 38％ Ayataka 5％ 6％ 7％ 7％ Aquarius 5％ 7％ 7％ Brand 8％ 8％ 8％ 8％ 5％ 4％ 8％ 4％ 4％ Soukenbicha 3％ 6％ 4％ 4％ 6％ 3％ Georgia 4％ 4％ Fanta 37％ 36％ 37％ 37％ 25％ 25％ Coca-Cola Zero 3％ 3％ 3％ 2％ 4％ 3％ 3％ 3％ 3％ 3％ 3％ Coca-Col
Slide 31: Sales update on vending machines by cluster
Sales update on vending machines by cluster Vending machine full service CAN VPM* V. PY [CCW Area] Vs. PY (%) Jan Feb Mar YTD total At-work (office) -2.2 +2.1 +0.0 -0.0 At-work (plant) -2.8 +1.9 +1.8 +0.4 Mass retailer -2.4 +1.6 -2.6 -1.3 Transportation +1.2 +3.8 +1.3 +2.0 School -0.8 +5.7 +3.2 +2.6
Slide 32: Q1 Sales Volume by channel/package
Q1 (Jan – Mar) – Sales Volume by channel/package ■Chain store Vs. Plan Vs. PY Q1 actual (Unit: K cases, %) Diff % Diff % SS PET (smaller than 1,000ml) 7,434 +504 +7.3 +667 +9.9 Midi PET (less than 1,500ml ) 341 +69 +25.1 +106 +45.4 LS PET (1,500ml or larger) 7,883 +391 +5.2 +485 +6.6 Can (incl. bott
Slide 33: Q2 Sales Volume Plan by package
Q2 (Apr – Jun) – Sales Volume Plan by package Vs. PY ※ Q2 plan (Unit: K cases, %) Diff % SS (1,000ml or s maller) 16,674 +864 +5.5 MIdi(s maller than 1,500ml) 638 +237 +59.0 PET LS (1,500ml or larger) 11,683 +25 +0.2 Total 28,996 +1,126 +4.0 Can (incl. bottle can) 13,410 -476 -3.4 Others 3,755 +207
Slide 34: Q2 Sales Volume Plan by channel/package
Q2 (Apr – Jun) – Sales Volume Plan by channel/package ■Chain store Vs. PY Q2 plan (Unit: K cases, %) Diff % SS PET (smaller than 1,000ml) 9,241 +517 +5.9 Midi PET (less than 1,500ml ) 599 +236 +64.9 LS PET (1,500ml or larger) 10,880 -3 -0.0 Can (incl. bottle CAN) 4,446 +424 +10.5 Other 368 -49 -11.8
Slide 35: Performance Trend
Performance Trend (Unit: MM JPY) 2016 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Plan Revenue 164,731 207,827 226,111 247,737 240,825 253,248 245,874 327,821 409,521 395,556 369,698 375,764 399,717 386,637 431,711 424,406 440,476 455,200 Operating 15,160 17,
Slide 36: KBI Trend
KBI Trend <Operating income & its ratio> <Net asset/capital ratio> (MM JPY) (MM JPY) 営業利益（百万円） Operating profits (MM JPY) 営業利益率（％） (%) Net純資産（百万円） assets (MM JPY) Ratio (%) (%) Capital ratio (%) 自己資本比率（％） 16,469 10 15,927 100 14,262 300,000 15,000 13,463 8 257,936 254,140 260,878 11,008 250,000 227,
Slide 37: 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, 2016) Joint companies of TCCC/CCJC ⑤ and bottlers Coca-Cola Integrated 21.1% Coca-Cola Business Systems 3.7% Co., Ltd. (CCIBS) (26.1%) West Co., ⑥ Ltd. (CCW) ① The Coca-Co
Slide 38: 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 39: Glossary
Glossary Term Explanation Channel (Business unit) Vending Retail sale business to distribute products through vending machines to consumers Chain store Wholesale business for supermarket chain Convenience Store (CVS) Wholesale business for convenience store chains Retail Wholesale business for groce
Slide 40: 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
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