Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — FY2022 Earnings Presentation
30 slides from Coca-cola Bottlers Japan's earnings presentation, Feb 10, 2023
Slide 1: Full-year 2022 Earnings Presentation
Full-year 2022 Earnings Presentation February 10, 2023 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & CFO (Posted to CCBJH website on Feb 9, 2023)
Slide 2: Full-year 2022 Earnings Presentation agenda
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Full-year 2022 Earnings Presentation Full-year 2022 Results Marketing Update Full-year 2023 Earnings Plan 2
Slide 3: Full-year 2022 Results
Full-year 2022 Results
Slide 4: FY2022 Overview
FY2022 Overview Sales volume grew by 3%. Growth foundation built to date contributed to capture demand from traffic recovery and heat wave. Strong top-line growth achieved despite the volume declines from price revisions. Price revisions for small packages implemented in October. Sequence of price r
Slide 5: 2022 Review
2022 Review Many learnings and achievements in a challenging environment. Confident in our strategy Key initiatives to realize future growth steadily producing results Key Initiatives in 2022 Major Results ✓ Leverage growth foundation built to date to +3% Volume growth maximize marketing activities
Slide 6: FY2022 Results (vs 2021)
FY2022 Results (vs 2021) Unit: Million JPY 2022 2021 YoY Actual Actual Revenue 807,430 785,837 +2.7% Sales Volume (Million Cases) 480 467 +3% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 474 459 +3% COGS 455,675 435,332 +4.7% Gross Profit 351,755 350,505 +0.4% SG&A 365,295 36
Slide 7: FY2022 Drivers of Business Income (vs 2021)
FY2022 Drivers of Business Income (vs 2021) Steady volume growth and improved wholesale revenue per case contributed to profit improvement, despite continued cost pressure Full-year 2021 Volume, Manufacturing Others DME Commodity & Full-year 2022 (Direct Marketing Actual Price & Mix* (excl. Utility
Slide 8: FY2022 NARTD Beverage Sales Volume (vs 2021)
FY2022 NARTD Beverage Sales Volume (vs 2021) Total channel volume grew by 3% with traffic recovery and heat wave demand. VM grew from initiatives to capture traffic recovery, while volume was affected by the price revisions. Online continued to grow with high convenience it offers, R&F increased due
Slide 9: Building Foundation for Value Share Growth
Building Foundation for Value Share Growth Total channel value share grew by 0.5 pts. Vending value share grew by 2.3 pts, continuing strong growth. OTC channel volume declined following the price revisions, but maintained its value share at almost flat levels. FY2022 Market Share Value Volume FY202
Slide 10: ESG Initiatives
ESG Initiatives Accelerating efforts towards sustainability management Enhancement of Disclosure Local Communities & Customers Toward World Without Waste Disclosure based on TCFD Collaboration with Saitama for Began “CAN to CAN”* recycling Disclose information on climate change human resource develo
Slide 11: Marketing Update
Marketing Update
Slide 12: FY2022 Review: Innovations
FY2022 Review Successfully grew KO NARTD value share (+0.5pts) with robust Coke ON platform ※ (43 mil downloads) despite the competitive market situation FEWER, BIGGER PIVOT TO CORE STAY@HOME INNOVATIONS Coke Zero Sugar Accelerate Ayataka Café the artist Georgia label-less products Hoji-cha Latte Re
Slide 13: 2023 Marketing Strategy
2023 Marketing Strategy Strengthen the core & continue to focus on scalable innovation with target relevant and effective marketing STRENGTHEN FEWER, BIGGER MARKETING THE CORE INNOVATIONS TRANSFORMATION FURTHER ACCELERATE KO SYSTEM COLLABORATION 13
Slide 14: 2023 Q1 Initiative Highlights (Jan-Feb)
2023 Q1 Initiative Highlights (Jan-Feb) Expand users base and drinking occasion through Core enhancement & New Innovations transforming the way of marketing CORE INNOVATIONS Coca-Cola TM Georgia TM Georgia Zodiac design Asset Tie-up Promotion Clear Blend Ayataka Core/Café series Lemon Dou Fanta Prem
Slide 15: Full-year 2023 Earnings Plan
Full-year 2023 Earnings Plan
Slide 16: 2023 Strategic Direction
2023 Strategic Direction In 2022, implemented action plans for a return to growth and improving profitability structure, while navigating significant cost pressures such as commodities. Business decisions made with strong will and thorough market execution have led to results. Facing further cost pr
Slide 17: FY2023 Earnings Plan
FY2023 Earnings Plan Unit: Million JPY 2023 2022 YoY Plan Actual Revenue 847,100 807,430 +4.9% Sales Volume (Million Cases) 471 480 -2% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 465 474 -2% COGS 474,600 455,675 +4.2% Gross Profit 372,500 351,755 +5.9% SG&A 376,300 365,295
Slide 18: FY2023 Drivers of Business Income (vs 2022)
FY2023 Drivers of Business Income (vs 2022) Significant profit improvement with profit base improvement centered on price revisions, despite continued challenging cost environment Volume, DME Manufacturing Full-year 2022 Transformation (Direct Marketing Others Commodity & Full-year 2023 Price & Mix*
Slide 19: 2023 Commercial Strategy
2023 Commercial Strategy Steady recovery of sales revenue and building foundation for sustainable profit Enhancing Portfolio Growth Through Profitability focused Strong Market Edge Vending Pricing Strategy Execution Focus on core categories: Maximizing sales per Implement price Cross-functional spar
Slide 20: Pricing Strategy to Improve Earnings Foundation
Pricing Strategy to Improve Earnings Foundation Additional price revisions decided to mitigate cost pressures Can, Large PET, Pouch Products Benefit of the price revisions Price Revisions from May 1, 2023 Shipments implemented ahead of the industry in 2022 exceeding expectations. Revision +3%~22% Ra
Slide 21: Supply Chain for Sustainable Growth
Supply Chain for Sustainable Growth Expanding production capacity for high value-added products driving growth. Aseptic line equipped with cutting-edge manufacturing technology to be introduced in Kanto area (Ebina plant). Stable operation of Mega DCs, the foundation for supply chain optimization. F
Slide 22: Good Stewardship of Capital
Good Stewardship of Capital Capex & Depreciation Optimize Balance Sheet Shareholder Return ✓ Selectively invest in items that ✓ Building a strong balance sheet ✓ Maintain stable dividends. will lead to sustainable growth that will support the beverage 25 yen for the interim and ✓ New aseptic line in
Slide 23: Summary
Summary Confident that learnings and results achieved to date will lead to mid- to long-term growth Move forward to achieve profitable future growth by focusing on profitability and achieving 2023 earnings targets 23
Slide 24: Appendix
é Appendix Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 25: Past Classification: FY2022 Drivers of Business Income (vs 2021)
<Past Classification> FY2022 Drivers of Business Income (vs 2021) Full-year 2021 Volume, DME Commodity Manufacturing Full-year 2022 (Direct Marketing Others Actual Price & Mix* Expense, fixed only) Actual • Benefit of change in useful life of sales +0.8 equipment • Stable logistics network -14.7 • S
Slide 26: FY2022 Results (vs Plan)
FY2022 Results (vs Plan) Unit: Million JPY 2022 2022 YoY Actual Plan Revenue 807,430 819,700 -1.5% Sales Volume (Million Cases) 480 478 +0% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 474 470 +1% COGS 455,675 465,100 -2.0% Gross Profit 351,755 354,600 -0.8% SG&A 365,295 368,
Slide 27: NARTD Channel / Category / Package Sales Volume
NARTD Channel / Category / Package Sales Volume Q4QTD (Oct to Dec) Sales Volume -3% By Package Full-year (Jan to Dec) By Channel Wholesale Package Volume 4% 1% Channel Volume revenue per case 3% 5% (Yen) S-PET +2% Supermarket (SM) -7% +70 10% M-PET +24% 23% 18% 5% 39% L-PET -7% Drug & Discounter (D&
Slide 28: Staying True to Our Mission, Vision, Values
Staying True to Our Mission, Vision, Values 28
Slide 29: Thank You
THANK YOU Investor Relations Coca-Cola Bottlers Japan Holdings Inc. ir@ccbji.co.jp https://en.ccbj-holdings.com/ir/
Slide 30: 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
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