Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Q3 2022 Earnings Presentation
26 slides from Coca-cola Bottlers Japan's earnings presentation, Nov 11, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 Earnings Presentation November 11, 2022 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & CFO (Posted to CCBJH website on Nov 10, 2022)
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: Coca-Cola Bottlers Japan Holdings Inc. (CCBJH)
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Third Quarter 2022 Earnings Presentation Q3 2022 Results Marketing Update Outlook 3
Slide 4: Q3 2022 Results
Q3 2022 Results
Slide 5: Q3YTD Overview
Q3YTD Overview Sales volume grew by 5%. Steady and strong growth from capturing heat wave and traffic recovery demand, despite impact of large PET price revisions. S&OP process improvements allowed stable supply during sharp demand increases. Wholesale revenue per case improving with price revisions
Slide 6: Strong Top Line Growth in Peak Season, Q3 (Jul-Sep)
Strong Top Line Growth in Peak Season, Q3 (Jul-Sep) Vending Volume Growth Volume Growth +7% ＋8% SM, D&D Value Share Wholesale Revenue Per Case +32 yen ＋0.7% 6
Slide 7: Q3YTD Results (vs 2021)
Q3YTD Results (vs 2021) Unit: Million JPY Q3YTD 2022 Q3YTD 2021 YoY Actual Actual Revenue 612,321 589,531 +3.9% Sales Volume (Million Cases) 367 351 +5% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 362 345 +5% COGS 345,004 328,708 +5.0% Gross Profit 267,317 260,823 +2.5% SG&A
Slide 8: Q3YTD Drivers of Business Income (vs 2021)
Q3YTD Drivers of Business Income (vs 2021) Steady volume growth and improved wholesale revenue per case contributed to profit growth, despite continued cost increase pressure Q3YTD 2021 Volume, Manufacturing Others DME Commodity & Q3YTD 2022 (Direct Marketing Actual Price & Mix* (excl. Utility Cost)
Slide 9: Q3YTD NARTD Beverage Sales Volume (vs 2021)
Q3YTD NARTD Beverage Sales Volume (vs 2021) Volume grew by 5% in Q3YTD and by 7% in Q3. Immediate consumption channels (VM, CVS) grew from initiatives to capture traffic recovery and heat wave demand. Online continued to grow in all categories with high convenience it offers. SM, D&D volume declined
Slide 10: Building Foundation for Value Share Growth
Building Foundation for Value Share Growth Q3YTD total channel value share grew by 0.8 pts. Vending value share grew by 2.6 pts, continuing strong growth. OTC channel volume declined following the price revisions but maintained its value share almost flat YoY. Large PET OTC retail prices was positiv
Slide 11: Volume Growth and Profitability Improvement Initiatives
Volume Growth and Profitability Improvement Initiatives Leveraging strong foundation to achieve volume growth and building future revenue base Volume Growth Profitability Improvement ✓ Strengthening commercial activities in immediate ✓ Price revisions of large PET and maintaining the consumption cha
Slide 12: Price Revision Progress
Price Revision Progress Pricing on plan. Big progress towards building future earnings foundation ▪ Retail price of large PET rose sharply in Q3 and maintained its momentum. ▪ Price premium to market average large PET in ＜Overview of Price Revisions＞ supermarkets, drugstores and discounters expanded
Slide 13: ESG Initiatives
ESG Initiatives Steady progress creating shared value Corporate Sustainability Excellence Contributing to Local Communities • Awarded Silver rating by EcoVadis sustainability Water Source Conservation Activities survey for two consecutive years. Highly rated, • Implemented contracts and activities i
Slide 14: Marketing Update
Marketing Update
Slide 15: 2022 Q3 Initiative Review
2022 Q3 Initiative Review Successfully drove Core business and New innovations. Coke ON achieved 40 million downloads. Coca-Cola TM GEORGIA & COSTA Coffee Grew NSR through Coca-Cola Zero campaign Expanded Share with GEORGIA TM Tiny TAN tie-up & Engaged Gen Z’s with Coke x Marshmello And Seasonal off
Slide 16: 2022 Q4 Initiative Highlights (Oct-Nov)
2022 Q4 Initiative Highlights (Oct-Nov) Expand users base and drinking occasions through Core enhancement & New Innovations Coca-Cola TM GEORGIA & COSTA Coffee Max out FIFA World Cup assets GEORGIA Zero series launched to capture health needs for Coca-Cola TM & KO Portfolio promotions & COSTA Coffee
Slide 17: 2022 Marketing Strategy
2022 Marketing Strategy Strengthen the core & grow year-2 and new innovations with continuously flexible and timely actions PIVOT TO CORE FEWER, BIGGER STAY@HOME コアへの原点回帰 INNOVATIONS 家庭内需要の獲得 選択と集中 17
Slide 18: Outlook
Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 19: Outlook for Q4
Outlook for Q4 Traffic recovery expected; need to monitor market environment after price revisions Business Environment Outlook Strategic Direction • Traffic recovery is expected to continue, supported by ✓ Maintain FY BI guidance of -14.6 billion yen government stimulus policies. Impact on demand f
Slide 20: Commodity and Forex Impact
Commodity and Forex Impact Additional mitigation plans considered with continued cost rise 2022 2023 Onwards Commodity & Forex Impact over 18B yen* Further Commodity and Forex Impact Possibility Large PET and Small Package Further Pricing Seriously Considered Price Revisions Implemented Promote Comm
Slide 21: Summary
Summary Q3YTD achieved strong volume growth capturing traffic recovery and heat wave demand, despite the volume impact from large PET price revisions. Efforts to improve profitability including price revisions are showing results. Conditions remained challenging with rising commodity prices and yen
Slide 22: Appendix
Appendix Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 23: Past Classification: Q3YTD Drivers of Business Income (vs 2021)
<Past Classification> Q3YTD Drivers of Business Income (vs 2021) Unit: B JPY (Rounding off less than unit) Q3YTD 2021 Volume, DME Q3YTD 2022 (Direct Marketing Commodity Manufacturing Others Actual Price & Mix* Actual Expense, fixed only) • Benefit of change in • Rising raw material useful life of sa
Slide 24: NARTD Channel / Category / Package Sales Volume
NARTD Channel / Category / Package Sales Volume Q3QTD (Jul to Sep) Sales Volume +7% By Package Q3YTD (Jan to Sep) By Channel Wholesale 5% Package Volume 1% 3% 5% Channel Volume revenue per case (Yen) S-PET +6% 9% Supermarket (SM) -5% +37 M-PET +32% 16% 25% 5% 40% L-PET -7% Drug & Discounter (D&D) +4
Slide 25: Staying True to Our Mission, Vision, Values
Staying True to Our Mission, Vision, Values 25
Slide 26: 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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