Coca-cola Bottlers Japan Holdings Inc. · TSE:2579

Coca-cola Bottlers Japan — Coca-Cola West Holdings — Q3 2006 Earnings Presentation

42 slides from Coca-cola Bottlers Japan's earnings presentation, Oct 25, 2006

1. Slide 1: 3Q Performance Announcement for the Year Ending December 2006

   3Q Performance Announcement for the Year Ending December 2006 October 25, 2006 Coca-Cola West Holdings (2579） Contact PR・IR Group TEL 092-283-5718 FAX 092-283-5729 URL http://www.ccwh.co.jp/ E-mail masahiro-takase@ccwh.co.jp

2. Slide 2: Contents

   Contents Ⅰ．Performance Results Ⅱ．Marketing 1．3Q Earnings … 3 pg 1．3Q Review 2．3Q Consolidated Profit Change Factors … 5 pg ①Key Brand Activities …21 pg 3．Group Companies’ Performance … 7 pg ②Key Channel Activities …23 pg 4．4Q Performance Forecast … 8 pg ③Overview of 3Q …25 pg 5．4Q Consolidated Profi

3. Slide 3: I. Performance Results

   ——— I . Performance Results

4. Slide 4: 3Q Earnings (Jul-Sep): Sales Volume

   3Q Earnings（Jul-Sep）: Sales Volume ¾Sales Volume ； vs. plan -2.3％、 vs. last year -4.0％ （000 case、% ） 2005 2006 3Q Actual Plan Actual vs. Plan vs. Last Year ※1 ※2 Difference % Difference % July 19,087 17,505 17,201 -304 -1.7 -1,886 -9.9 Aug 19,934 20,361 21,058 697 3.4 1,124 5.6 Sep 17,414 17,596 15,

5. Slide 5: 3Q Earnings (Jul-Sep): Consolidated Profits

   3Q Earnings（Jul-Sep）: Consolidated Profits ¾Revenue: vs. Plan 2,009 MM JPY decline（‐1.7%）、vs. LY 46,539 MM JPY increase（＋66.5%） ¾Operating Income: vs. Plan 34 MM JPY increase（＋0.6%）、vs. LY 983 MM JPY increase（＋20.8%) （MM JPY、%） 2006 3Q 2005 3Q Plan Actual vs. Plan vs. Last Year Actual ※ 1 ※2 Differe

6. Slide 6: 3Q Consolidated Profit Change Factors (vs. Plan)

   3Q Consolidated Profit Change Factors (vs. Plan) ＜Gross Profit＞ （BB JPY） Gross Profit – 3Q plan 51.1 ＊Major factors for profit decrease Impact by Sales Company(※） Decrease in Sales Volume －1.1 ・Impact from Sales Company(※） Impact by Sales Company(※) Decrease from Sales Mix －0.6 Sales Volume decrease

7. Slide 7: 3Q Consolidated Profit Change Factors (vs. LY)

   3Q Consolidated Profit Change Factors（vs. LY） ＜Gross Profit＞ （Billion Yen） Gross Profit - 2005 3Q 30.2 Net increase from Kinki Group ＋20.3 ＊Major factors for profit increase Sales Mix impact ＋0.9 ・Net increase from Kinki Group 20.3BB JPY ・Sales Mix 0.9BB JPY Other increase ＋0.3 Decrease of sales vol

8. Slide 8: Group Companies' Performance

   Group Companies’ Performance （MM JPY、%） ＜ Coca-Cola West Japan＞ 2005 2006 3Q 3Q Plan Actual vs. plan vs. LY Actual ※ 1 ※2 Difference % Difference % Revenue 50,957 49,768 48,343 -1,425 -2.9 -2,613 -5.1 Operationg Income 2,407 2,549 2,293 -255 -10.0 -114 -4.7 ＜ Kinki CCBC＞ Revenue 46,001 45,865 45,472

9. Slide 9: 4Q Performance Forecast (Oct-Dec) - Consolidated Profits

   4Q Performance Forecast (Oct-Dec） - Consolidated Profits （MM JPY、%） 2005 2006 4Q 4Q Actual vs. LY Actual ※ Difference % Revenue 58,557 103,200 44,643 76.2 Operating Income 1,796 3,600 1,804 100.4 Recurring Income 1,999 3,900 1,901 95.1 Net Profit 2,168 2,200 32 1.5 ※2005 4Q Actual is the actual cons

10. Slide 10: 4Q Consolidated Profit Change Factors (vs. LY)

    4Q Consolidated Profit Change Factors (vs. LY) ＜Gross Profit＞ （BB JPY） Gross Profit – 2005 4Q 25.5 ＊Major factors for Profit Increase Net increase from Kinki Group ＋19.8 ・Net Increase for Kinki Group 19.8BB JPY Increase from Sales Volume ＋0.5 ・Increase in Sales Volume 0.5BB JPY Sales Mix Impact ＋0.1

11. Slide 11: Performance Forecast for the Fiscal Year

    Performance Forecast for the Fiscal Year ■West Group 2H Plan＋ex-CCWJ 1H Consolidated Actual Figure （MM JPY, %) 2005 2006 Actual Plan vs. Last Year ※ Difference % Revenue 245,874 333,400 87,526 35.6 Operating Income 11,830 12,400 570 4.8 Recurring Income 12,256 13,300 1,044 8.5 Net Profit 7,305 7,400

12. Slide 12: II. Group Restructuring

    _——— Il. Group Restructuring 11

13. Slide 13: Group's Growth Strategy

    Group’s Growth Strategy Maximize Leadership in Return to Value the KO system Stakeholders in Japan Market Execution Expansion Efficiency Group Restructuring Strategic Partnership with TCCC/CCJC 12

14. Slide 14: Group Restructuring

    Group Restructuring Restructure group companies in order to achieve further growth of CCW group. Consolidation of Logistics Companies Capital Reduction of Kinki, Mikasa, and Kansai Beverage Services Corporate Name Change for Daisen Beverages 13

15. Slide 15: Group Restructuring Plan

    Group Restructuring Plan Group Restructuring Plan CCWJ CCWJ Change capital structure and reorganize Nishi Nishi Nihon Nihon Beverage Beverage by function ＣＣＷＪ Products ＣＣＷＪ Products Sales Sales ＣＣＷＪ Vending ＣＣＷＪ Vending (Commercial (Commercial Distribution) Distribution) ＣＣＷＪ Customer ＣＣＷＪ Customer

16. Slide 16: Consolidation of Logistics Companies

    Consolidation of Logistics Companies ¾3 logistics companies will be consolidated to achieve further growth of the group. ＜Objective of the Consolidation＞ ① Achieve economies of scale through expansion and enhance quality through efficient operations ② Share best practice and know-how of low-cost ope

17. Slide 17: Synergy from Consolidation of Logistics Companies

    Synergy from Consolidation of Logistics Companies ＜Synergy of Consolidation＞ „ Expand operations utilizing our own vehicle ¾ Place our own vehicle in Kansai area： Secure 35% of our own vehicle operating rate ¾ Assess opportunities of acquisition of other logistics companies „ Secure backload taking

18. Slide 18: Reduction of Capital: Kinki, Mikasa, and Kansai Beverage

    Reduction of Capital: Kinki, Mikasa, and Kansai Beverage ¾Reduce capital of Kinki, Mikasa, and Kansai Beverages to JPY100 MM without compensation ＜Objective of Capital Reduction＞ ・Shift to small corporation category under the corporation act and enhance flexibility of business management as a functi

19. Slide 19: Renaming Daisen Beverages

    Renaming Daisen Beverages ＜Reason for the Change of Corporate Name＞ ・Daisen beverages became a wholly-owned subsidiary of CCWH in August 2006. By adding “Coca-Cola West” in the company name, it is clarified that Daisen Beverages is the group company of CCWH and the sense of unity within the group wi

20. Slide 20: III. Marketing

    Il. Marketing 19

21. Slide 21: Review of 3Q

    ——— Review of 3Q 20

22. Slide 22: Review of 3Q - Key Brand Activities (1)

    Review of 3Q － Key Brand Activities (1) 2H Key 2H Key Brand Brand Activities Activities Actual Sales Volume By Brand ＜Maximizing the Summer Demand＞ Q3 2006 ■Coca-Cola Actual v.s. Plan v.s. Ly ⇒Expansion of Diet Coke （Unit：000’ uc、％） Sales Change Rate Change Rate ⇒Deploying the value-added can Coke 4

23. Slide 23: Review of 3Q - Key Brand Activities (2)

    Review of 3Q ｰ Key Brand Activities（2） 2H Key 2H KeyBrand BrandActivities Activities Sales Performance of Key New Products ＜Maximizing the platform through new products＞ ⇒Further nurturing new products in 1H 7.2MM BAPC Composition Rate16.9％ （-5.9% vs. LY) Launched ⇒Introduction of new added-value pr

24. Slide 24: Review of 3Q - Key Channel Activities (1)

    Review of 3Q ｰ Key Channel Activities（1） 2H Key 2H Key Channel Channel Activities Activities Actual Sales Volume By Channel Q3 2006 Actual v.s. Plan v.s. Ly ■Vending Sales （000’ uc, %） Change Rate Change Rate ⇒Expand # of VM in the market Vending 16,459 -142 -0.9 -307 -1.8 ⇒Deployment of VPM※ improv

25. Slide 25: Review of 3Q - Key Channel Activities (2)

    Review of 3Q ｰ Key Channel Activities（2） 2LPET “Volume Share” Trend By Maker in SM CCWH A 40 B C CCWH D 35 30 25 Jan - Sept 20 Ａ Ｂ C Ｄ 30.6％ 15 10 5 0 1/2 2LPET 1/16 1/30 2/13 2/27 3/13 3/27“Value 4/10 Share” 4/24 5/8Trend 5/22By6/5 Maker 6/19in SM 7/3 7/17 7/31 8/14 8/28 9/11 9/25 CCWH A 40 B C D C

26. Slide 26: General Overview of 3Q

    General Overview of 3Q „Sales ⇒Due to west Japan’s favorable weather conditions in August, the sales were positive. However, Kyushu’s weather in September was not favorable thus affecting sales. As a result, 3Q results v.s. plan and v.s. Ly were -2.3% and -4.0% respectively. „Brand ⇒Positive momentu

27. Slide 27: Q4 Activity Plan

    Q4 Activity Plan 26

28. Slide 28: Key Activities in Q4 - Brand Strategy

    Key Activities in Q4 － Brand Strategy Sales Plan By Brand Activity Points ¾Recapturing and strengthening key （000' uc、％） 2005 Q4 2006 Plan brands Q4 v.s. Ly ■Georgia Plan Actuals Change Rate ⇒Recapturing and strengthening during peak seasons Coke 3,132 3,337 205 +6.6 Georgia 11,906 12,628 722 +6.1 ★

29. Slide 29: Key Activities in Q4 - Georgia Strengthening Implementation

    Key Activities in Q4 － Georgia Strengthening Implementation ■Georgia ： Recapturing and strengthening during peak seasons ¾Expansion of retail exposure and maximum implementation of new / renewal products ⇒Strengthened implementation of the new Georgia Emblem Black（10/2～） ¾Implementation of the Autum

30. Slide 30: Key Activities in Q4 - Package Strategy

    Key Activities in Q4 － Package Strategy ■Implement hot products with a focus on Georgia PET ⇒Vending ： Increase in VPM through a smooth transition to hot products as well as optimization of VM column. ※ＶＰＭ…（Ｖｏｌｕｍｅ Ｐｅｒ Ｍａｃｈｉｎｅ） ⇒OTC ： Creation of the “Winter Sales Area” through a focus on maximizing

31. Slide 31: Key Activities in Q4 - Channel Strategy

    Key Activities in Q4 － Channel Strategy Sales Plan By Channel Activity Points （000' uc, %） ■Vending 2005 Q4 2006 Plan ⇒Optimizing the vending machine column Q4 v.s. Ly …Smooth transition from autumn to winter products Plan …Deploying hot products by location Actuals Change Rate ⇒Increasing the numbe

32. Slide 32: Q4 Sales Volume Achievement Scenario

    Q4 Sales Volume Achievement Scenario （000 BAPC） ■Convenience Store ■Convenience Store ■Vending ■Vending —New Product： —New Product： 368,000 368,000 BAPC BAPC —Increase the —Increase the number number of of vending vending machines machines in the market in the market Others -- Net Net increase incre

33. Slide 33: Reference

    ［Reference］ 32

34. Slide 34: OTC Market Share (Excl. VM) - CCWH Area

    OTC Market Share（Excl. VM） － CCWH Area Source：Intage ※The numbers outside the graph are changes v.s. ly （%, Point） 100％ Others 41.8 43.1 44.0 D 5.8 －0.1 6.0 －0.3 5.4 －0.1 C 5.7 ＋0.7 5.7 ＋0.8 5.6 ＋0.3 8.8 －0.5 8.9 －0.4 8.2 －0.5 B 14.7 －1.1 14.5 －0.8 15.1 ＋0.2 A Coca-Cola 23.2 －0.9 －1.1 －1.1 21.8 21.7

35. Slide 35: By Brand/By Channel Volume/Revenues/Gross Profits

    By Brand/By Channel Volume/Revenues/Gross Profits 100％ 2005 3Q 2006 3Q Others 34％ 34％ 35％ 31％ Hajime/ Marocha 44％ 44％ 7％ 7％ 5％ 6％ Sokenbicha 10％ Brand 6％ 10％ 9％ 5％ 10％ Aquarius 9％ 12％ 10％ 9％ 12％ 13％ 14％ 15％ Georgia 26％ 28％ 26％ 29％ 18％ 18％ Coca-Cola 12％ 12％ 11％ 12％ 9％ 9％ Volume Revenues Gross Profit

36. Slide 36: Performance Trend (Consolidated)

    Performance Trend（Consolidated） （MM JPY） 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Plan Revenues 113,490 115,408 117,991 164,731 207,827 226,111 247,737 240,825 253,248 245,874 333,400 Operating Profits 10,481 10,737 12,533 15,160 17,449 16,634 16,704 19,638 16,860 11,830 12,400 Recurri

37. Slide 37: Financial Data

    Financial Data ＜Operating Profit／OP Ratio＞ ＜Net Assets / Equity Ratio＞ 175,000 83.2 84.0 25,000 10.0 83.0 OP% 170,000 Equity Ratio 20,000 7.4 8.2 OP 8.0 81.0 80.6 82.0 80.7 6.7 6.7 81.0 165,000 15,000 6.0 Net Asset 80.0 4.8 160,000 79.0 77.5 173,608 10,000 16,634 16,704 19,638 16,860 4.0 165,454 167

38. Slide 38: Coca-Cola System in Japan

    Coca-Cola System in Japan Investment Coca-Cola ⑤ National Beverage Coca-Cola Coca-Cola ( CCNBC ） West Tokyo ⑥ Holiding （１００％） R&D Center （ CCWH ） ① （ CCTR&D ） Coca-Cola The ④ Beverage Coca-Cola Service （ CCBSC ) Company Coca-Cola ⑦ Central Japan （ TCCC ） （ CCCJ ) ② Coca-Cola Coca-Cola National （１００％

39. Slide 39: Coca-Cola Related Companies and Their Roles

    Coca-Cola Related Companies and Their Roles ① Coca-Cola West Holdings Co,, Ltd. (CCWH) ⑥ Coca-Cola National Beverages Co., Ltd. (CCNBC) In July, 2006, Coca-Cola West Japan Company, Limited Jointly established in April 2003 by TCCC and CCBCs for the and Kinki Coca-Cola Bottling Company, Limited merge

40. Slide 40: Our Group Companies - Principal Business

    Our Group Companies - Principal Business Our Group Compa ni es Pri nci pa l B us i nes s （１）Coca-Cola West Japan (CCWJ) Beverage sales （２）Kinki Coca-Cola Bottling Beverage sales （３）Mikasa Coca-Cola Bottling Beverage sales （４）CCWJ Products Beverage production （５）Kinki Coca-Cola Products Beverage prod

41. Slide 41: Glossary

    Glossary Term Description Chann el ・Vending Retail sale business to distribute products through vending machines to consumers ･Chain store Wholesale business for supermarket chains ･Convenience Store Wholesale business for convenience store chains ･Retail Wholesale business for grocery stores, liquo

42. Slide 42: 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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