Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Q1 2022 Earnings Presentation
30 slides from Coca-cola Bottlers Japan's earnings presentation, May 13, 2022
Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 Earnings Presentation May 13, 2022 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & CFO (Posted to CCBJH website on May 12, 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: Coca-Cola Bottlers Japan Holdings Inc. (CCBJH)
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) First Quarter 2022 earnings presentation Q1 2022 Results Marketing Update Full-year 2022 Outlook Q&A 3
Slide 4: Q1 2022 Results
Q1 2022 Results
Slide 5: Q1 2022 Overview
Q1 2022 Overview Sales volume increased by 4% with the gradual restart of economic activity leading to traffic recovery. Revenue impacted by negative mix and falling wholesale revenue per case. Channel total value share grew. Driven by vending channel value share growth of 36 consecutive months. Bus
Slide 6: Q1 2022 Results vs 2021
Q1 2022 Results vs 2021 Unit: Million JPY Q1 2022 Q1 2021 YoY Actual Actual Revenue 168,853 168,399 +0.3% Sales Volume (Million Cases) 101 97 +4% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 99 95 +4% COGS 96,842 94,239 +2.8% Gross Profit 72,011 74,161 -2.9% SG&A 84,892 85,42
Slide 7: Q1 2022 Drivers of Business Income
Q1 2022 Drivers of Business Income Volume growth; continued intense competition and rising raw material prices Q1 2021 Volume, DME Q1 2022 Price & Mix* Commodity Manufacturing Others Actual (Direct Marketing Actual Expense, fixed only) -11.6 • Volume increase of +4%, • Volume growth • Benefit of cha
Slide 8: Q1 2022 NARTD Beverage Sales Volume Conditions (vs 2021)
Q1 2022 NARTD Beverage Sales Volume Conditions (vs 2021) Volume grew by 4%, but challenging conditions for wholesale revenue per case continues. Growth supported by continued at-home demand, Supermarkets and Drug & Discounters as well as Online. Vending grew through traffic recovery and the result o
Slide 9: Building a Foundation for Value Share Growth
Building a Foundation for Value Share Growth Total value market share grew by +0.7 pts in Q1. Vending value share growing for 36 consecutive months, OTC remains to be challenged. Maintain OTC retail price premium vs market average. Q1 Market Share Value Volume OTC Retail Price (Jan. to Mar., vs PY,
Slide 10: Marketing Update
Marketing Update
Slide 11: 2022 Q1 Initiative Review
2022 Q1 Initiative Review Drove core growth for Coke, Georgia, COSTA, Ayataka and Lemon-dou with Year-2 & New Innovations Coca-Cola TM GEORGIA & COSTA AR Fortune bottle & Coke Zero New Campaign Grew Coffee market share under Global “Real Magic” platform leveraging GA New campaign with upgrade portfo
Slide 12: 2022 Q2 Initiative Highlights (Apr-May)
2022 Q2 Initiative Highlights (Apr-May) Expand users and drinking occasions through Core enhancement & Tapping into white space with New Innovations Coca-Cola Label-less GEORGIA Coca-Cola & Coca-Cola Zero Accelerate “Recharge” occasion 100% r-PET Label-less under new campaign “The Coffee that makes
Slide 13: 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 13
Slide 14: Full-year 2022 Earnings Guidance
Full-year 2022 Earnings Guidance
Slide 15: FY2022 Earnings Guidance
FY2022 Earnings Guidance With continued challenging business environment, multiple factors for profit decrease expected. However, target business income at the same level as previous year through volume growth by capturing traffic recovery, cost savings through transformation and efforts to improve
Slide 16: FY2022 Guidance
FY2022 Guidance Unit: Million JPY 2022 2021 YoY Guidance Actual Revenue 819,700 785,837 +4.3% Sales Volume (Million Cases) 478 468 +2% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 470 460 +2% COGS 465,100 435,332 +6.8% Gross Profit 354,600 350,505 +1.2% SG&A 368,000 363,750 +
Slide 17: FY2022 Drivers of Business Income
FY2022 Drivers of Business Income Profit decline due to challenging business environment, but work continues on growing volume and improving profit base Full-year 2021 Volume, DME Manufacturing Others Full-year 2022 Actual Price & Mix* Commodity (Direct Marketing Forecast Expense, fixed only) +0.0 -
Slide 18: 2022 Targets
2022 Targets On target to achieve 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 mind expan
Slide 19: 2022 Commercial Strategic Pillars
2022 Commercial Strategic Pillars Progressing on track towards capturing demand recovery 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 dr
Slide 20: Pricing Strategy for Sustainable Growth
Pricing Strategy for Sustainable Growth Implemented large PET price revision effective as of May 1. Seriously considering pricing measures for small packages. Commodity prices continues to pressure profitability, urgency to improve earnings base. Continue to offer high value added products and innov
Slide 21: Growth Through Vending Channels
Growth Through Vending Channels Efforts strengthened to capture demand with traffic recovery Initiatives for Growth Leveraging Coke ON Further Operation Optimization Focus on core Enhance customer engagement Stable operation of the new Pricing balanced with business with Coke ON business model envir
Slide 22: Supply Chain Initiatives
Supply Chain Initiatives Optimization of Supply Chain Network Supply Chain and Commercial Leveraging Mega DCs Collaboration Efforts to Reduce Number of Touches Forecast Sales Sales Monitoring Planning Mega DC Supply Chain Planning Akashi Mega DC is scheduled Reduced number of touches in the supply c
Slide 23: ESG Initiatives
ESG Initiatives Steady progress in creating shared value Excellence in ESG initiatives Climate Change Initiatives Selected as a constituent of the Endorsed the TCFD and joined FTSE Blossom Japan Sector Relative Index the TCFD Consortium The Index is designed to relatively reflect In line with TCFD’s
Slide 24: Summary
Summary Despite continued transformation over the past several years to build a solid foundation for sustainable growth, earnings performance remains challenging due to the COVID-19 impact. 2022 business environment expected to remain difficult. We will work to capture demand recovery, mitigate fact
Slide 25: Foundation Built Through Transformation Enabling Future Growth
Foundation Built Through Transformation Enabling Future Growth Developing mid-term business plans 2023 Onwards 2020-2022 Sustainable Growth 2017-2019 Driving transformation even Shareholder Value Integration in challenge environment Creation Achieved through earnings Capture demand through healthy g
Slide 26: Citta
Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 27: Appendix
Appendix Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 28: Change in Useful Life of Sales Equipment
Change in Useful Life of Sales Equipment As consumer spending pattern has been impacted by COVID-19, we have decided to further strengthen margin and ROI focused commercial strategy. As part of such strategic direction, utilize our sales equipment on a longer-term basis and more efficiently than in
Slide 29: Q1 2022 NARTD Package Volume (vs 2021)
Q1 2022 NARTD Package Volume (vs 2021) Package Volume 3% S-PET +1% M-PET +65% 9% L-PET +2% 6% 39% Can -5% 12% Bottle Can +8% 23% Syrup +10% 3% Powder +17% S-PET: PET under 650ml/L-PET: PET above 1.5L NARTD: Non-alcoholic ready-to-drink Note: Volume doesn’t include alcohol. Revenue per case doesn’t i
Slide 30: THANK YOU
THANK YOU Investor Relations Coca-Cola Bottlers Japan Holdings Inc. ir@ccbji.co.jp https://en.ccbj-holdings.com/ir/
Coca Cola Bottlers Japan — Q1 2022 Earnings Presentation on 6ix