Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — FY2023 Earnings Presentation
33 slides from Coca-cola Bottlers Japan's earnings presentation, Feb 15, 2024
Slide 1: Full-Year 2023 Earnings Presentation
Full-Year 2023 Earnings Presentation February 15, 2024 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & CFO (Posted to CCBJH website February 14, 2024)
Slide 2: Coca-Cola Bottlers Japan Holdings Inc. (CCBJH)
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Full-Year 2023 Earnings Presentation Full-Year 2023 Results Full-Year 2024 Earnings Plan 2
Slide 3: Today's Highlights
Today’s Highlights 2023 returned to profit for full year ahead of 2024 target. Business income exceeded period’s upwardly-revised plan, significant 16.5 billion yen increase over previous year. Strong +7.6% revenue growth. Volume grew +3% reflecting benefits of key initiatives with favorable environ
Slide 4: Full-Year 2023 Results
Full-Year 2023 Results
Slide 5: 2023 Achieved Significantly Higher Profits than Initial Plan
2023 Achieved Significantly Higher Profits than Initial Plan Business Income (B JPY) ◆ Significant increase in business income vs. Previous Year vs. Initial Plan 2.0 + 16.5B yen + 7.0B yen 2022 Actual 0 1.5 Revised Plan ◆ Key initiatives delivering strong results (Revised-up 2023 Actual -5.0 in Nove
Slide 6: FY2023 Results (vs 2022)
FY2023 Results (vs 2022) Achieved return to profit ahead of 2024 target in Strategic Business Plan Unit: Million JPY 2023 2022 Change YoY Actual Actual YoY Revenue 868,581 807,430 +61,150 +7.6% Sales Volume (Million Cases) 492 478 +14 +3% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million
Slide 7: FY2023 Drivers of Business Income (vs 2022)
FY2023 Drivers of Business Income (vs 2022) Large profit growth from top-line driven profit and transformation benefit DME FY 2022 Volume, Transformation (Direct Marketing Manufacturing Others Commodity & FY2023 Actual Price & Mix* Expense, fixed only) (ex. Utility Cost) Utility Cost Actual -2.4 +3.
Slide 8: FY2023 NARTD Beverage Sales Volume Trends (vs 2022)
FY2023 NARTD Beverage Sales Volume Trends (vs 2022) 3% volume growth by capturing traffic recovery and heat wave demand despite price revision impacts. Wholesale revenue per case improved in all channels with price revision benefits. VM leveraged strong share base and Coke ON, able to control volume
Slide 9: Value Share Foundation Supporting Growth
Value Share Foundation Supporting Growth Continued total market share growth through new product launches and effective marketing activities Total channel value share grew by 0.2 pts. Price revisions impacted market share trends, however vending value share remained positive from previous year and d
Slide 10: Price Revision Update
Price Revision Update Significant retail price rise with stream of price revisions implemented since 2022 Large PET: With price revisions in May and October 2023, retail prices continues to rise on top of elevated level of the previous year. Small PET: Since 2022 October’s price revision, maintained
Slide 11: Full-Year 2024 Earnings Plan
Full-Year 2024 Earnings Plan
Slide 12: Strong 2024 Business Income Growth of 5 Times the Previous Year
Strong 2024 Business Income Growth of 5 Times the Previous Year 2028 Strategic Direction for 2024 Sustainable Profitable 2023 Further profit growth backed by strong 2023 achievements Growth • Implement top-line growth strategy focusing on profit Vision 2028 Year of Profit Focus maximization Revenue
Slide 13: FY2024 Earnings Plan
FY2024 Earnings Plan Business income target of 10B yen for the crucial 1st year, towards achieving targets of the Strategic Business Plan Unit: Million JPY 2024 2023 Change YoY Plan Actual YoY Revenue 882,400 868,581 +13,819 +1.6% Sales Volume (Million Cases) 493 491 +2 +0.5% NARTD (Non-alcoholic re
Slide 14: FY2024 Drivers of Business Income (vs 2023)
FY2024 Drivers of Business Income (vs 2023) Target BI growth of 8 billion yen & 5 times compared to previous year, through top-line growth and transformation savings FY2023 Volume, DME Manufacturing Others Commodity & FY2024 Transformation Actual Price & Mix* (Direct Marketing Expense, fixed only) (
Slide 15: 2024 Commercial Strategy
2024 Commercial Strategy Top-line growth strategy centered around profit maximization Profitability Focused Strengthen Customer Enhancing Portfolio Edge Vending Transformation Commercial Activities Management Focus on core categories: Top-line growth leveraging Growth strategy suited for Build strat
Slide 16: Enhancing Portfolio Edge: Marketing Strategy Highlights
Enhancing Portfolio Edge: Marketing Strategy Highlights Building consumer base and recruiting consumers through key occasions and innovation Building CORE Strategic INNOVATION Marketing Experience Capturing every consumption occasion Drive growth in share & premiumization E2E experiences reaching th
Slide 17: Vending Transformation
Vending Transformation Further transformation leveraging technology based on achievements to date Transformation achievements up to 2023 Initiatives for 2024 Building strong market share base Implement top-line growth strategy with deeper use of technology Improving efficiency through • Leverage Cok
Slide 18: Profitability focused commercial activities
Profitability focused commercial activities Profitable top-line growth through comprehensive profit improvement initiatives and disciplined commercial activities Profitability focused Rising costs from external Achieve profitable top-line commercial activities resulting environment impacting in sign
Slide 19: Commercial Organization Aligned with Channel Characteristics
Commercial Organization Aligned with Channel Characteristics Implemented organizational changes centered on three channels to further strengthen ability to execute growth strategies Speeding up decision making and improving the driving force of each channel’s growth strategy in the commercial depart
Slide 20: Supply Chain Strategies
Supply Chain Strategies Further improve efficiency leveraging supply chain infrastructure built to date Total optimization of end-to-end supply chain process by promoting local production for local consumption model coupled with improved accuracy of S&OP process Manufacturing Fields Logistics Fields
Slide 21: Back-office and IT Transformation
Back-office and IT Transformation Building a foundation to further promote data-driven management Current Key initiatives for the future Further promote standardization, improved efficiency, Promote Back-office operation reform higher quality, and automation of business processes progressing, but ro
Slide 22: Strengthen Initiatives for Creating Shareholder Value
Strengthen Initiatives for Creating Shareholder Value Implement initiatives to enhance capital efficiency for ROIC improvement Capital Efficiency Improvement Shareholder Value Improvement Capex & Depreciation Optimize Balance Sheet Shareholder Return ✓ In accordance with Strategic ✓ Continue initiat
Slide 23: HR Strategy – Renewed People Strategy
HR Strategy – Renewed “People Strategy” To achieve Vision 2028, contribute to business growth through people, culture, and organization Strong ownership over personal development and career Collaborate with diverse individuals PEOPLE Fulfillment and happiness through business success and personal gr
Slide 24: Initiatives to Realize our Vision
Initiatives to Realize our Vision Accelerate efforts by setting priority areas and KPIs according to business issues Drive People Strategy with DE＆I target as an accelerator of focus areas Focus areas of People Strategy Securing workforce in GEMBA for business sustainability Hiring channel expansi
Slide 25: Summary
Summary Strong earnings in 2023 provided foundation and confidence for sustainable future growth. Significant profit increase from previous year and a return to profit ahead of plan. In 2024, further accelerate favorable momentum and strong profit build up to 5x business income over the previous yea
Slide 26: Thank You
THANK YOU Investor Relations Coca-Cola Bottlers Japan Holdings Inc. ir@ccbji.co.jp https://en.ccbj-holdings.com/ir/
Slide 27: Appendix
Appendix
Slide 28: FY2023 Results (vs Plan)
FY2023 Results (vs Plan) Unit: Million JPY Change Change Change Change FY2023 Vs Revised Vs Revised Vs Original Vs Original Actual Plan *1 Plan Plan*2 Plan Revenue 868,581 -1,319 -0.2% +21,481 +2.5% Sales Volume (Million Cases) 492 -0 -0% +21 +4% NARTD (Non-alcoholic ready to drink) Beverage Volume
Slide 29: FY2023 Q4 (Oct to Dec) Results (vs 2022)
FY2023 Q4 (Oct to Dec) Results (vs 2022) Unit: Million JPY Q4 2023 Q4 2022 Change YoY Actual Actual YoY Revenue 204,756 195,109 +9,647 +4.9% Sales Volume (Million Cases) 113 112 +1 +1% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 112 111 +1 +1% COGS 115,135 110,671 +4,464 +4.
Slide 30: NARTD Channel / Category / Package Sales Volume
NARTD Channel / Category / Package Sales Volume Q4QTD (Oct to Dec) Sales Volume +1% By Package Full-year (Jan to Dec) By Channel Wholesale 5% Package Volume Channel Volume revenue per case 3% 1% (Yen) S-PET -1% 5% Supermarket (SM) -11% +114 11% M-PET +10% 21% 5% 38% L-PET +1% 19% Drug & Discounter (
Slide 31: ESG Initiatives
ESG Initiatives Promote initiatives that create value ------------------------------------------------------------------ Major Initiatives --------------------------------------------------------------- --------------Values-------------- Donated products through the “Famima Food Drive” to a total of
Slide 32: We bottle happy moments.
mn HIUDIS. We bottle happy moments.
Slide 33: 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
Coca Cola Bottlers Japan — FY2023 Earnings Presentation on 6ix