Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Q2 2021 Earnings Presentation
31 slides from Coca-cola Bottlers Japan's earnings presentation, Aug 12, 2021
Slide 1: Second quarter 2021 Earnings Presentation
Second quarter 2021 Earnings Presentation August 12, 2021 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & Chief Financial Officer (Posted to CCBJH website on August 11, 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: Q2 2021 earnings presentation agenda
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Q2 2021 earnings presentation Overview and situational analysis 1H 2021 results and 2021 outlook Q&A 3
Slide 4: Overview and Situational Analysis
Overview and Situational Analysis
Slide 5: 1H 2021 Highlights
1H 2021– Highlights Market uncertainty continues; consumer traffic remains challenged due to rise in COVID-19 infections and additional State of Emergency declarations Ongoing COVID-19 impact on market trends (channels/packages) continue to pressure profitability Cycling includes one-time cost savin
Slide 6: Winning in the market: Innovation & Growth
Winning in the market: Innovation & Growth Accelerating initiatives to capture changes in consumer behavior New products/ Packages Online Vending Increase label less SKUs and, Capture growth with new innovative products and package New Vending opportunity with growing revenue from sizes that meet th
Slide 7: Winning in the market: Vending Channel
Winning in the market: Vending Channel Achieving 27 consecutive months of value share gain Investing to grow our healthy base & prepared to capture future growth Product line-up Improve placement location Effective new product launch Increase placement in high VPM Strategic pricing & package line-up
Slide 8: Transformation Continues: Vending business model
Transformation Continues: Vending business model Phase 2 of vending transformation Phase 2 of Vending Transformation Started. Further accelerate transformation to improve quality and efficiency of operation from last year (Phase 1) Phase 1：July 2020～ Phase 2：May 2021～ ▶Planning Further route optimiz
Slide 9: Transformation Continues: Supply Chain
Transformation Continues: Supply Chain Establishing a solid supply chain foundation for growth & improved efficiency Manufacturing Logistics Capacity expansion in growing areas Logistic centered around Saitama Mega DC ・Aseptic: 7 new lines between 2018 - 2020 • Started operation in February, complet
Slide 10: ESG – At the core of our daily operations
ESG – At the core of our daily operations Steady progress in creating shared value Recycle Embrace Diversity and Equality Accelerate our initiative toward a “World Without Coca-Cola system in Japan in May 2021 Waste” with the introduction of Brand Coca-Cola with implemented employment regulations 10
Slide 11: Progress against 2021 target
Progress against 2021 target Focusing on the controllable, building resilience and setting foundation for growth Market share Recurring cost savings Capex Target Progress Target Progress Target Progress 7-9 B yen About 45-50 B yen 28.1 B yen 6 B yen Value share growth Recurring cost savings target L
Slide 12: 1H 2021 Results
1H 2021 Results yi
Slide 13: 1H 2021 results vs. 2020
1H 2021 results vs. 2020 Continued COVID impact; cycling extensive one-time cost savings in Q2 2020 Unit: Million JPY 2021 1H Actual 2020 1H Actual YoY (%) Continuing Operations (Beverage Business) Revenue 369,309 374,598 -1.4% Beverage Sales Volume (Million Cases) 217 212 +3% NARTD (Non-alcoholic r
Slide 14: 1H 2021 Drivers of Business Income
1H 2021 Drivers of Business Income Volume recovery in Q2 was not enough to offset the cycling impact cost savings of last year Volume, Price DME Commodity Manufacturing Others & Mix* (Direct Marketing Expense, fixed only) -7.4 -14.8 • Resuming marketing • New production line investment that had depr
Slide 15: 1H 2021 NARTD beverage volume performance by channel
1H 2021 NARTD beverage volume performance by channel Volume growth in Online, SM, D&D and Vending SM, D&D: Increased mainly in categories that offer a 1H total volume +3% wide range of package sizes in response to changes in By channel consumer purchasing styles such as domestic Wholesale consumptio
Slide 16: 1H 2021 NARTD beverage volume performance by category
1H 2021 NARTD beverage volume performance by category Continued impact of COVID-19; new products starting to contribute 1H total volume +3% By category Sparkling Recovery in volume in Q2 in SM and Vs. PY Volume online, new Fanta Premier Orange also contributed 5% 8% Sparkling Flat NST New products Y
Slide 17: NARTD channel/category/package volume performance
NARTD channel/category/package volume performance Q2 2021 (April to June) volume: +15% By package By channel vs PY Volume Wholesale 1H 2021 Vs. PY Volume revenue 5% S-PET +2% 4% 1% per case 2% M-PET +95% Supermarket (SM) +12% -91Yen 8% L-PET +11% 5% 13% Drug & Discounter (D&D) +10% -82Yen Can -5% 27
Slide 18: Building a foundation for value share growth in 2021
Building a foundation for value share growth in 2021 Vending continues to grow; OTC leaves room for improvement OTC market share Vending value share • Q2 OTC value share was challenging given the intensified • Growing for 27 consecutive months, record high value promotion activities market share ach
Slide 19: Continued priority on good stewardship of capital
Continued priority on good stewardship of capital Focus on shareholder value creation Shareholder value creation Balance sheet and Dividends Capex and depreciation cash flow ✓On plan to pay interim - 45 billion cash-in with 12.8 - Continued restraint in dividend of 25 yen/share billion yen pre-tax p
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 Q2 Initiatives Review 2021 Q3 Initiatives Highlight 21
Slide 22: 2021 Q2 Initiatives Review
2021 Q2 Initiatives Review Building consumer engagement and new users via core & innovations Coca-Cola TM & Flavor Sparkling Coke ON campaign 100% recycled PET bottle 350/700ml PET Coca-Cola, I LOHAS, Georgia* Reduction of CO2 emissions National Expansion Coke ON install exceeds 28MM 60% per bottle,
Slide 23: 2021 Q3 Initiatives Highlights (Jul)
2021 Q3 Initiatives Highlights (Jul) Expand users & drinking occasions by enhancing core & innovations Team Coca-Cola Tokyo 2020 GEORGIA “Ayataka Café Matcha Latte” Portfolio Campaign SHOT & BREAK 440mlPET Re-Launch Creating a new style of Reclaim its product 2.16MM users applied to the Short-Break
Slide 24: 2021 Q3 Initiatives Highlights: alcohol white space
2021 Q3 Initiatives Highlights (Jul) Cultivate alcohol as a white space with core campaign & innovations “Lemon Dou” NOMEL’s Topo Chico Hard Seltzer Summer Campaign Hard Lemonade (Pilot) Capture summer occasion Cutting edge by positioning Salty and Get off to a good start and hard seltzer alcohol br
Slide 25: 2021 Plan: Continue flexible and timely actions
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 25
Slide 26: 2021 Outlook
2021 Outlook yi
Slide 27: Full year operating environment remains unpredictable
Full year operating environment remains unpredictable COVID-19 Cases Rising Lower Traffic at Major Railway Stations 14,000 # of new cases # of severe patients 1,600 Traffic data in Major Stations (% vs LY) 12,000 1,400 1,200 150 SoE SoE SoE 10,000 # of severe patients # of new cases 1,000 8,000 100
Slide 28: Business as usual is not an option
Our focus areas during uncertain times SAFETY & SECURITY AGILITY RESILIENCE The safety and security of Agile and flexible business Accelerating transformation our consumers, customers, planning, ready for the to build a resilient partners, employees and future foundation communities are our priority
Slide 29: Key Takeaways
Key Takeaways Uncertainty continues with rising COVID-19 infections and State of Emergency Market volume recovery expected, but outlook remains hard to predict with continued consumer trend shift Cycling of one time cost savings in 2020 is expected to put pressure on shot-term profitability, and 1H
Slide 30: Coca-Cola Bottlers Japan Holdings logo
Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 31: Thank you
THANK YOU Investor Relations Coca-Cola Bottlers Japan Holdings Inc. ir@ccbji.co.jp https://en.ccbj-holdings.com/ir/
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