Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Q1 2021 Earnings Presentation
39 slides from Coca-cola Bottlers Japan's earnings presentation, May 14, 2021
Slide 1: First quarter 2021 Earnings Presentation
First quarter 2021 Earnings Presentation May 14, 2021 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ulgenes, Vice President & Chief Financial Officer (Posted to CCBJH website on May 13, 2021)
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: Q1 2021 earnings presentation agenda
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Q1 2021 earnings presentation Overview and situational analysis Q1 2021 results and 2021 outlook Q&A 3
Slide 4: Overview and Situational Analysis
Overview and Situational Analysis
Slide 5: Q1 2021 – Focusing on what we can control amidst volatility
Q1 2021– Focusing on what we can control amidst volatility Mitigating COVID-19 impact Recover & grow market share Transforming for the long run •Delivering new recurring cost savings •Continued momentum on vending •Sale of Q’sai completed in Q1 for future and mitigating current risk value share and
Slide 6: Business as usual is not an option
Key transformation initiatives underway and accelerating pace Continued market uncertainty as successive States of Emergency and other countermeasures declared due to rising COVID-19 cases SAFETY & SECURITY AGILITY RESILIENCE The safety and security of Agile and flexible business Accelerating transf
Slide 7: Navigating challenging environment, accelerating transformation
Navigating challenging environment, accelerating transformation Initiatives Progress Completed initial vending / sales route Vending / retail (OTC) sales route Vending / transformation transformation ahead of plan in 2020 Commercial Continuing organizational structure Optimized commercial organizati
Slide 8: Capturing opportunities to drive growth in the New Normal
Capturing opportunities to drive growth in the “New Normal” Accelerating initiatives to capture changes in consumer behavior Food Delivery / Changing Sizes and Online Digital Takeaway Packaging Increase label less SKUs and New Vending opportunity with Expand 350/700ml PET offerings in Capture the tr
Slide 9: Developing an agile and flexible supply infrastructure
Developing an agile and flexible supply infrastructure Saitama Mega DC (East Japan) ramping up operations in 2021 as planned. Automation, digitalization, remote monitoring using IoT Akashi Mega DC (West Japan) construction on plan Shinsei logistic/distribution optimization project ongoing; closed 2
Slide 10: Flatter org structures, new working styles, shift to digital
Flatter org structures, new working styles, shift to digital make us more agile Working in different ways provides opportunity for change Rapid shift to digital in daily operations: 17,000 smartphones with work apps to all employees Expanding remote work, work from home leads to real change in work
Slide 11: ESG – At the core of our daily operations
ESG – At the core of our daily operations Steady progress in creating shared value Recycle Certification / Recognition Accelerate our move toward a “World Without Waste” Semi Nadeshiko 2021 for diversity management with the introduction of Brand Coca-Cola with 100% 2021 Health & Productivity Managem
Slide 12: Progress against 2021 Outlook announced in February
Progress against 2021 Outlook announced in February Focusing on the controllable, building resilience and setting foundation for growth Market share Recurring cost savings Annual dividends Target Progress Target Progress Target Progress About 50 Target 7-9 B yen yen/share Maintained 2 B yen Value sh
Slide 13: Q1 2021 results
Q1 2021 results yi
Slide 14: Q1 2021 results vs. Q1 2020
Q1 2021 results vs. Q1 2020 Continued COVID impact cycling good start to Q1 2020; Investing again in marketing and product launches after pause in 2020. Net income reflects profit from sales of Q’sai business Q1 2020 Actual Q1 2021 Actual YoY (%) excl Q’sai Revenue 168,399 193,029 -12.8% Beverage Sa
Slide 15: Q1 2021 Drivers of Business Income
Q1 2021 Drivers of Business Income Topline impact of consumer traffic shift during pandemic, offset by continued cost discipline Volume, Price DME Commodity Manufacturing Others & Mix* (Direct Marketing Expense, fixed only) -7.1 • Investing again in -11.6 marketing drive • New production line growth
Slide 16: Q1 2021 NARTD beverage performance by channel
Q1 2021 NARTD beverage performance by channel Growth in SM, D&D, Online channels capturing changing consumer behavior Winning where the growth is Online volume growth +65% vs. PY By channel Wholesale Vs. PY Volume revenue Capturing bulk purchase demand in SM and D&D 3% 1% per case Mix & wholesale re
Slide 17: Q1 2021 NARTD beverage category volume performance
Q1 2021 NARTD beverage category volume performance Continued impact of COVID-19; Introducing new products to set foundation for the year Sparkling driven by decline in R&F, VM and CVS. Partly By category Vs. PY Volume offset by Coca-Cola Zero growth and new flavors of Fanta Premier series 9% Sparkli
Slide 18: Building a foundation for value growth in 2021
Building a foundation for value growth in 2021 Recovery in retail channel market share and continued vending share gains OTC – Back to market share growth from December Vending value share • Q1 OTC value share remained even YoY, supported by a • Growing for 24 consecutive months return to more norma
Slide 19: Focusing on what we can control
Focusing on what we can control Driving transformation for the future while mitigating current risks Q1 2021 Situation • Challenging environment Focus on delivering results continues as we cycle initial as COVID impact continues COVID impact in March 2020 • Expect gradual improvement ✓ Transformatio
Slide 20: Marketing and branding update
Marketing and branding update
Slide 21: Update from Coca-Cola (Japan) Company, Limited
Update from Coca-Cola (Japan) Company, Limited 2021 Q1 Initiatives Review 2021 Q2 Initiatives Highlight 21
Slide 22: 2021 Plan: Continue flexible and timely actions to adapt to changes
2021 Plan: Continue flexible and timely actions to adapt to changes Ramping up marketing activities for solid growth FEWER, BIGGER PIVOT TO CORE STAY@ HOME INNOVATIONS コアへの原点回帰 家庭内需要の獲得 選択と集中 22
Slide 23: 2021 Q1 Initiatives Review
2021 Q1 Initiatives Review Building consumer engagement and new users via core & innovation Coca-Cola TM “GEORGIA” x “GUNDAM” AYATAKA TM Traditional “Live the moment” Campaign Campaign Crafts Donation Bottle Popular group “NiziU”, High consumer engagement 830K promo applicants High consumer engageme
Slide 24: 2021 Q2 Initiatives Highlights: enhancing the core
2021 Q2 Initiatives Highlights (Apr-May) Expand users and drinking occasions by enhancing the core Coca-Cola TM, AYATAKA TM New Campaign Ouchi-de-Café GEORGIA Fanta, Sprite, Canada Dry 350mlPET/700mlPET “My Choice is AYATAKA” “At Home GEORGIA” National expansion Capture optimized price/pack format U
Slide 25: 2021 Q2 Initiatives Highlights: Big Bet innovations
2021 Q2 Initiatives Highlights (Apr-May) Offer new value through Big Bet innovations Yakan barley tea ICY SPARK COSTA COFFEE from Hajime from Canada Dry Premium PET Coffee from COSTA COFFEE Launch barley tea Launch strongest with craftmanship loved with authentic sparking water ever in by Europeans
Slide 26: 2021 Q2 Initiatives Highlights: core assets and sustainability
2021 Q2 Initiatives Highlights (Apr-May) Leverage core assets and sustainability for further growth Revitalize Maximize Accelerate vending business Tokyo 2020 assets 100% recycled PET bottle Campaign Team Coca-Cola Launch “Coca-Cola” and “Georgia Japan Craftsman*” made from 100% recycled plastic bot
Slide 27: 2021 Direction / Outlook
2021 Direction / Outlook f Wit
Slide 28: Continued Market Uncertainty and Consumer Evolution driven by COVID-19
Continued Market Uncertainty and Consumer Evolution driven by COVID-19 Macro economy Uncertainty remains as infection cases fluctuate • 2021 annualized GDP estimated at +3.3%; cycling -4.8% in Number of new coronavirus cases (per day) 2020. Variability across quarters. • Consumer confidence index co
Slide 29: 3rd COVID-19 State of Emergency and 2021 priorities
3rd COVID-19 State of Emergency Introduced end-April, extended to May 31 Easing 3rd Pre-pandemic 1st SoE Resurgence 2nd SoE SoE Restrictions SoE SoE SoE CCBJI NARTD volume YoY (Jan. 2020 to March. 2021) 1 2020 2 Q1 3 4 2020 5 Q2 6 7 82020 Q3 9 10 2020 11 Q4 12 1 2021 Q1 2 3 42021 Q2 5 Priorities in
Slide 30: Transformation dashboard
Transformation dashboard Continue to make progress as planned despite challenges of COVID-19 Revenue Mix / Portfolio Agile Operation Fixed Cost Reduction Supply Capacity Management Structure On track On track Work in progress Ahead of plan • Vending routes optimized. • 20% more new aseptic capacity
Slide 31: Adapting to change and making it an opportunity
Adapting to change and making it an opportunity Marketing innovation and investment for future growth New Products Coke ON App Alcohol 12M cases sold since market entry in 2018 Teiban Lemon #1 market New product launches Leveraging Coke ON as a share in 350ml lemon sour leveraging “Next Generation d
Slide 32: Continued priority on good stewardship of capital
Continued priority on good stewardship of capital Focus on shareholder value creation and appropriate cash position given macro uncertainty Shareholder value creation Balance sheet and Dividends Capex and depreciation cash flow - Return to stable dividend - 45 billion cash-in with 12.8 - Q1 rise due
Slide 33: 2021 Outlook
2021 Outlook Focusing on the controllable, building resilience and setting foundation for growth Market share Recurring cost savings Annual dividends Target Progress Target Progress Target Progress About 50 Target 7-9 B yen yen/share Maintained 2 B yen Value share growth Recurring cost savings targe
Slide 34: Citta
Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 35: Appendix
Appendix Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 36: Q1 2021 NARTD beverage package volume performance
Q1 2021 NARTD beverage package volume performance By package vs PY Volume 4% S-PET -7% 3% M-PET +71% 8% L-PET +9% 6% 40% Can -14% 13% Bottle Can -2% 24% Syrup -39% 2% Powder -30% S-PET: PET under 600ml/L-PET: PET above 1.5L NARTD: Non-alcoholic ready-to-drink NARTD: Non-alcoholic ready-to-drink Note
Slide 37: We are part of the global Coca-Cola system
We are part of the global Coca-Cola system An enduring and effective partnership Coca-Cola (Japan) Company • Brands • Customer focus • Innovation • Local expertise • Global perspective • Best-in-class execution • Consumer focus • Finished goods production • Superior insight • Logistics and distribut
Slide 38: Glossary of key terms
Glossary of key terms Business A measure of our underlying or recurring business performance after the adoption of IFRS. Business Income deducts cost of goods and SG&A from revenue, and Income includes other income and expenses which we believe are recurring in nature. DME Abbreviation of Direct Mar
Slide 39: Thank you
THANK YOU Investor Relations Coca-Cola Bottlers Japan Holdings Inc. ir@ccbji.co.jp https://en.ccbj-holdings.com/ir/ facebook: https://www.facebook.com/ccbji/
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