Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola East Japan — Q4 2016 Earnings Presentation
33 slides from Coca-cola Bottlers Japan's earnings presentation, Feb 10, 2017
Slide 1: Coca-Cola East Japan Q4 & Full-Year 2016 Earnings Presentation
Coca-Cola East Japan Q4 & Full-Year 2016 Earnings Presentation Calin Dragan, CEO Jawahar Solai, CFO February 10, 2017 (Posted to CCEJ Website February 9, 2017) コカ･コーライーストジャパン株式会社 www.ccej.co.jp
Slide 2: Forward-Looking Statements
CCEJ Q4/Full-Year 2016 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
Slide 3: Coca-Cola East Japan Q4 & Full-Year 2016 Earnings Presentation
Coca-Cola East Japan Q4 & Full-Year 2016 Earnings Presentation コカ･コーライーストジャパン株式会社
Slide 4: Q4 & Full-Year 2016 Earnings Presentation
CCEJ Q4/Full-Year 2016 Q4 & Full-Year 2016 Earnings Presentation Introduction •Overview and Key Messages Q4 and Full-Year Results •Volume, Share and Financial Results 2017 CCEJ Outlook •Initiatives and Plans Creation of CCBJI - Integration with CCW •Integration Preparation Progress and Outlook コカ･コー
Slide 5: A Strong Year, Building on 3-Year Integration Experience
CCEJ Q4/Full-Year 2016 A Strong Year, Building on 3-Year Integration Experience Strong results – beat September 9 upward revision of operating income forecast. Delivered three-year plan in one year. Reported operating income grew 70% vs. prior year; Net income up 2X prior year Gross margins an
Slide 6: Q4 & Full-Year 2016 Sales Results
Q4 & Full-Year 2016 Sales Results コカ･コーライーストジャパン株式会社
Slide 7: Full-Year Volume Growth in a Competitive Environment
CCEJ Q4/Full-Year 2016 Full-Year Volume Growth in a Competitive Environment Reported Volume Growth Q1 • Strong start to the year– maintained positive momentum from Q4 2015 into Q1 Full-Year Q4 • Benefit from Sendai acquisition in prior year +15% Q2 • Volume growth led by product innovation • Growth
Slide 8: Product Mix Drives Improving per Case Trends
CCEJ Q4/Full-Year 2016 Product Mix Drives Improving per Case Trends Selling Price per Case (YoY, Monthly) OTC Retail Price • CCEJ average retail price continues above market + average for both large and small packages. + • Trend versus prior year moderating through the year. 0- CCEJ OTC Retail Price
Slide 9: Maintained Market Share in the Full-Year
CCEJ Q4/Full-Year 2016 Maintained Market Share in the Full-Year Full-Year Market vs. Prior Year • Maintained value and volume share Share Q4 2016 FY 2016 • Share gains in Drug & Discounter; Cola, Coffee & Water Q4 Value -0.9 +0.0 • Balancing value and volume performance Volume -0.8 +0.3 • Cycling pr
Slide 10: Performance by Channel
CCEJ Q4/Full-Year 2016 Performance by Channel Solid full-year growth; Impact of cycling in fourth quarter Q4 Volume by Channel (% of total) Channel Volume Growth Others Supermarket Drug & 11% (SM) Discounter Nat’l Local 20% (D&D) vs. PY CVS D&D VM E&D Vending (VM) SM SM 11% 29% Convenience Q4 2016 -
Slide 11: Performance by Category
CCEJ Q4/Full-Year 2016 Performance by Category Balanced full-year volume growth across portfolio Q4 Volume by Category Category Volume Growth (% of total) Juice 5% Others Sparkling 13% vs. PY NST Water Coffee SSD Sports Juice Sports 6% (SSD) 26% Q4 2016 -1% -10% -5% +2% +2% -5% Water FY2016 4% 11% 6
Slide 12: Full-Year 2016 Financial Results
Full-Year 2016 Financial Results コカ･コーライーストジャパン株式会社
Slide 13: Drivers of Full-Year Operating Income Growth
CCEJ Q4/Full-Year 2016 Drivers of Full-Year Operating Income Growth Full-Year 2016 Supply Chain Savings DME Other Other Depreciation Comparable OPEX Subsidiaries Operating -4,819 Income -166 -792 +10,406 +2,518 Gross Profit Full-Year 2015 Impact of • Higher volume • Labor, pensions, • CAPEX timing •
Slide 14: Full-Year 2016 Financial Results Summary
CCEJ Q4/Full-Year 2016 Full-Year 2016 Financial Results Summary Significant Operating Income Growth vs. Prior Year • Revenue impacted by lower sales to other bottlers • Improved gross margin & operating margin from significant supply chain savings • SG&A led by decrease in labor and logistic/distrib
Slide 15: 2017 CCEJ Outlook and Plans
2017 CCEJ Outlook and Plans コカ･コーライーストジャパン株式会社
Slide 16: Full-Year CCEJ 2017 Plan Overview
CCEJ Q4/Full-Year 2016 Full-Year CCEJ 2017 Plan Overview Reported Operating Income 20 Billion Yen +8.2% Revenue Growth +1.4% Operating Income Margin 3.4% • Increasing focus on value growth, slower industry volume growth in 2017 NARTD Market • Ongoing channel mix shift and pressure on retail pricing
Slide 17: We Have Built a World-Class Supply Chain for Japan
We Have Built a World-Class Supply Chain for Japan Planned & Progressive Changes Over 4 Years 2013 2014 2015 2016 2017 NET SYNERGIES NET SYNERGIES One+ Roadmap for Growth 5.4B JPY 2.2B JPY 10.4B JPY 1. • 10 New Production Lines Manufacturing • Insourcing Production Volume Master Plan • Significant C
Slide 18: Commercial: Building on 2016 Foundation
CCEJ Q4/Full-Year 2016 Commercial: Building on 2016 Foundation Focus on Productivity and Capabilities Building Focus on Profitable Growth Optimize Cost-to-Serve Superior Marketing Higher productivity culture • Revenue Growth Management Ongoing initiatives : • Shopper centric activities RTM, Eq
Slide 19: コカ･コーライーストジャパン株式会社
コカ･コーライーストジャパン株式会社 19
Slide 20: New Products and Marketing Activities in Q1
New Products and Marketing Activities in Q1 1/23 Coca-Cola Ginger 2/6 Georgia Emerald Mountain Renewal 2/13 Canada Dry Renewal 3/27 Coca-Cola Plus (Foshu) Products • Lead industry through innovation • Focusing on higher value, 1/30 2/27 3/6 Coca-Cola TM New Package 2/13 premium and Karadameguricha A
Slide 21: 2017 Forecast (CCEJ Consolidated - Reported)
CCEJ Q4/Full-Year 2016 2017 Forecast (CCEJ Consolidated - Reported) Unit: Million JPY Vs. PY 2017 Forecast 2016 Results Diff % Sales Volume* 323,278 317,991 5,287 +1.7 (BAPC) (,000 cases) Net Revenue 580,400 572,496 7,904 +1.4 Gross Profit 279,200 272,892 6,308 +2.3 Operating Income 20,000 18,489 1,
Slide 22: 2017 CCEJ Modeling Reminders
CCEJ Q4/Full-Year 2016 2017 CCEJ Modeling Reminders 2017 forecast and plan are based on current consolidation scope of CCEJ CAPEX and Depreciation 2017 Capex plan includes incremental investment (CokeOne+ ERP phase 2 deployment, logistics/distribution optimization, upgrade/conversion of producti
Slide 23: Creation of CCBJI - Integration with CCW
Creation of CCBJI - Integration with CCW コカ･コーライーストジャパン株式会社
Slide 24: CCBJI: Kicking off a New Era in the Beverage Industry
CCEJ Q4/Full-Year 2016 CCBJI: Kicking off a New Era in the Beverage Industry Building on strong momentum, integration work progressing and on schedule for smooth Day-One start • JFTC approval received November 2016 • U.S. SEC Form F-4 expected by end of February • Annual shareholders’ meetings to ap
Slide 25: The Japan Coca-Cola System Continues to Evolve
CCEJ Q4/Full-Year 2016 The Japan Coca-Cola System Continues to Evolve Together with the customer, consumer, competitive landscape 1956-99 2001 2006 2013 2015 2017 17 14 12 8 6 5 bottlers bottlers bottlers bottlers bottlers bottlers Tokyo Tokyo Tokyo 2013 2015 2017 CCEJ Tone Tone Tone Mikuni Fuji 200
Slide 26: CCEJ One+ Roadmap for Growth
CCEJ Q4/Full-Year 2016 CCEJ One+ Roadmap for Growth 2018- Tokyo Olympic Games & Beyond 2016-2017 Accelerating 2015-2016 Performing 2012-2014 Norming Meet & exceed Approaching world-class Forming & Storming 2012-2013 Refine & global bottler bottler levels optimize new performance Forming Define & dep
Slide 27: Delivering Tangible Results from Transformation
CCEJ Q4/Full-Year 2016 Delivering Tangible Results from Transformation Successful bottler integration model built on speed, scale, capabilities and synergy capture • A Solid Foundation for Growth • ~2015 Built Solid Foundation 2016 Encouraging Results Strong - 10 new production lines - Delivered sig
Slide 28: Appendix
Appendix コカ･コーライーストジャパン株式会社
Slide 29: Drivers of Q4 2016 Operating Income
CCEJ Q4/Full-Year 2016 Drivers of Q4 2016 Operating Income Q4 2015 Q4 2016 Comparable Supply Chain Other Comparable Operating DME Synergies OPEX Operating Income Income Gross Profit Other Impact of Subsidiaries Depreciation volume, • CAPEX timing price/mix +1,920 -2,217 • Labor related and plan revi
Slide 30: Q4 2016 Financial Results Summary
CCEJ Q4/Full-Year 2016 Q4 2016 Financial Results Summary • In-line with plan • Revenue reflects decrease of sales to other Coca-Cola bottlers • Improved gross margin driven by continued supply chain efficiency improvement • SG&A increase led by marketing investment, performance-related compensation
Slide 31: The Coca-Cola System
CCEJ Q4/Full-Year 2016 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
Slide 32: Glossary of Frequently Used Terms
CCEJ Q4/Full-Year 2016 Glossary of Frequently Used Terms CDE Abbreviation of Cold Drink Equipment. Vending machines, coolers and beverage dispensers, etc. DME Abbreviation of Direct Marketing Expenses. Sales promotion-related expenses reported in advertisement & sales promotion expenses and partly i
Slide 33: THANK YOU
THANK YOU Coca-Cola East Japan Q4/Full-Year 2016 Earnings Presentation February 10, 2017 <Inquiries> Investor Relations Coca-Cola East Japan ir@ccej.co.jp +81-3-5575-3797 http://investor.ccej.co.jp/ コカ･コーライーストジャパン株式会社