Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola East Japan — Q1 2015 Earnings Presentation
24 slides from Coca-cola Bottlers Japan's earnings presentation, May 12, 2015
Slide 1: Coca-Cola East Japan Q1 2015 Earnings Conference Call
Coca-Cola East Japan Q1 2015 Earnings Conference Call Calin Dragan, CEO Michael Coombs, CFO May 12, 2015 www.ccej.co.jp
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 East Japan Co. Ltd. (CCEJ) in view of data obtained as of the date this material was released. These forecasts may differ ma
Slide 3: Q1 2015 Earnings Conference Call
Q1 2015 Earnings Conference Call Introduction • Overview and Key Messages • Transforming our Business First Quarter Results • Share, Volume and Financial Results Integrating Sendai Coca-Cola Bottling Company • Revised Full-Year Plan • One+ Roadmap for Growth Second Quarter Milestones • Marketing Act
Slide 4: A Solid Start to the Year
A Solid Start to the Year Q1 comparable operating loss improved by 3.6 billion yen vs. prior year, including cycling the impact of the accounting policy change in Q1 2014. Revenue performance in line with volume, reflecting improved price/mix in the quarter. Sixth consecutive quarter of volume an
Slide 5: First Quarter 2015 Results
First Quarter 2015 Results www.ccej.co.jp
Slide 6: Transforming the Business in Q1
Transforming the Business in Q1 Rapid organizational transformation & integration continues; acquired Sendai Coca-Cola Bottling Company, consolidated eight subsidiaries into FV East Japan. Phase One of ERP System operational. Fine-tuning and “hypercare” IT support ongoing. Working to ensure stable
Slide 7: Q1: Marketing & Innovation Platforms
Q1: Marketing & Innovation Platforms Q1 Coca-Cola Bottle 100th Anniversary Coca-Cola Life Schweppes Citrus Q1 Georgia Campaign Emerald Mountain Blend Aluminum Can Rollout New Flavor Launch Georgia Campaign Georgia New Flavor The world is made Mitsuboshi Presso up of someone’s work (Three-Star Presso
Slide 8: Balanced Volume & Value Share Growth
Balanced Volume & Value Share Growth Q1 2015 Market Share* Value share growth ahead of volume share Volume +0.1 Lower share growth vs. prior year, in line with plan Value +0.2 Share gains in cola, tea, sports and water Volume Share vs. Prior Year Value Share vs. Prior Year *Source: Intage, OTC chann
Slide 9: Channel Performance
Channel Performance Q1 2015 Volume by Channel Channel Volume Growth (% of total) Eating & Drinking CVS growth led by led by new outlet Others Supermarket Drug & water, tea, coffee growth 12% (SM) 20% Discounter Vending (D&D) Indoor Vending 9% volume +1% (VM) Convenience 31% Eating & Store (CVS) Drin
Slide 10: Category Performance
Category Performance Q1 2015 Volume by Category (% of total) Category Volume Growth Successful launches Juice driving tea growth Others Sparkling 6% Sparkling decline 11% led by vending & cycling (SSD) 26% Coffee prior year launches 19% Tea Sports Water 22% 7% 9% Water growth driven by smaller pack
Slide 11: Drivers of First Quarter Operating Income
Drivers of First Quarter Operating Income 2014 Q1 2015 Q1 Comparable Comparable Operating Income Operating Income Depreciation In million JPY vs. PY • COGS +789 -1,598* Supply Chain • OPEX +3,645 Synergies • Cycling prior year accounting change • Delivering GP Impact synergies, still DME** of Mix &
Slide 12: First Quarter 2015 Results
First Quarter 2015 Results 2015 Q1 2015 Q1 2015 Q1 2014 Q1 Vs. PY Actual One-time Comparable Comparable in million yen items Diff % Sales Volume - 59,010 59,010 59,884 -874 -1.5 (BAPC) (,000 cases) Net Revenue 110,220 - 110,220 111,915 -1,695 -1.5 COGS 58,846 - 58,846 61,552 -2,706 -4.4 Gross Profit
Slide 13: Integrating Sendai Coca-Cola Bottling Company
Integrating Sendai Coca-Cola Bottling Company www.ccej.co.jp
Slide 14: Integration of Sendai Coca-Cola Bottling
Integration of Sendai Coca-Cola Bottling Sendai joined CCEJ as of April 1, 2015; Now South Tohoku Region Full integration planned in 2016 +200 million yen Operating Income for 2015 (Q2-Q4) Expect 1.5 to 2.0 billion yen in synergies by end of 2017 14
Slide 15: Revised 2015 Plan Including Sendai
Revised 2015 Plan Including Sendai 2015 FY Sendai 2015 FY 2014 FY Vs. PY Previous Comparable Estimate (Q2 to Q4) Revised Comparable Diff % in million yen Comparable Result Estimate Sales Volume* 287,763 21,020 308,783 281,586 27,197 +10% (BAPC) (,000 cases) Net Revenue 535,700 36,200 571,900 523,299
Slide 16: One+ Roadmap for Growth
One+ Roadmap for Growth 2015: Roadmap for Growth still Appropriate • Pace of improvement will not change 2018- Tokyo Olympic • Focus on delivering in 2015, 2016 Games & Beyond 2016-2017 Accelerating 2015-2016 Performing 2012-2014 Norming Meet & exceed Approaching world-class Forming & Storming 2012-
Slide 17: Revised 2015 Operating Income
Revised 2015 Operating Income In million JPY -1,908 +200 DME +6,010 • “Big Bet” brand Sendai CCBC launches -2,411 +1,188 Integration • VM locations • Q2-Q4 2015 • Key accounts +502 Depreciation vs. PY OPEX Other 15,800 subsidiaries • COGS -705 • Cost inflation offset • OPEX +1,893 by procurement SCM
Slide 18: Second Quarter 2015 Milestones
Second Quarter 2015 Milestones www.ccej.co.jp
Slide 19: Q2: Connecting with the Consumer
Q2: Connecting with the Consumer Q2 Coca-Cola Bottle 100th Anniversary Coca-Cola Life CCEJ New Website/Plant Tours Share-a-Coke Coca-Cola Aluminum Contour Bottle announced Q2 Customer-Exclusive Branded Products Georgia European Renewal Georgia Georgia Private Reserve Craftsman Select Concept Cafe Co
Slide 20: Key Milestones
Key Milestones Continued stabilization and utilization of new ERP system; management of stable product supply as we fully shift to new system. Full rollout of new Route-to-Market across 130+ sales centers. Operational integration of Sendai (now South Tohoku Region) and FV East Japan Pricing, Ter
Slide 21: Appendix: Years of the Coca-Cola Bottle
APPENDIX \ 100 YEARS OF THE COCA-COLA BOTTLE CxLbela Cast Japan DAFT —-AhY eo NRRL www.ccej.co.jp
Slide 22: The Coca-Cola System
The Coca-Cola System A powerful partnership driving growth of the Coca-Cola business The Coca-Cola system in Japan consists of the Coca-Cola (Japan) Company (CCJC), bottlers and other related companies. CCJC, as the franchise owner, is responsible for supplying concentrate and beverage bases (coffee
Slide 23: Glossary of frequently used terms
Glossary of frequently used terms CDE Abbreviation of Cold Drink Equipment. Vending machines, coolers and beverage dispensers, etc. Coolers The equipment with Coca-Cola’s logos which keeps beverages at an appropriate temperature (chilled and/or hot) for immediate consumption, and ready for selling t
Slide 24: Thank You
THANK YOU Coca-Cola East Japan Q1 2015 Earnings Conference Call May 12, 2015 <Inquiries> Investor Relations Coca-Cola East Japan ir@ccej.co.jp +81-3-5575-3797 http://investor.ccej.co.jp/ www.ccej.co.jp