Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Q2 2022 Earnings Presentation
23 slides from Coca-cola Bottlers Japan's earnings presentation, Aug 12, 2022
Slide 1: Second Quarter 2022 Earnings Presentation
Second Quarter 2022 Earnings Presentation August 12, 2022 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & CFO (Posted to CCBJH website on Aug 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: Second Quarter 2022 Earnings Presentation Agenda
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Second Quarter 2022 Earnings Presentation 1H 2022 Results Marketing Update 2H 2022 Outlook 3 3
Slide 4: 1H 2022 Results
1H 2022 Results va
Slide 5: 1H 2022 Overview
1H 2022 Overview Sales volume grew by 4%. Captured demand from traffic recovery and heat wave, volume growth despite volume impact from large PET price revision in May. Achieved stable product supply during large demand fluctuations through S&OP process improvements. Total channel value share grew.
Slide 6: 1H 2022 Results (vs 2021)
1H 2022 Results (vs 2021) Unit: Million JPY 1H 2022 1H 2021 YoY Actual Actual Revenue 375,948 369,309 +1.8% Sales Volume (Million Cases) 224 217 +4% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 221 212 +4% COGS 212,810 206,040 +3.3% Gross Profit 163,138 163,269 -0.1% SG&A 181
Slide 7: 1H 2022 Drivers of Business Income (vs 2021)
1H 2022 Drivers of Business Income (vs 2021) Volume growth offset by rising commodity and cycling of one time cost savings from last year 1H 2021 Volume, DME 1H 2022 (Direct Marketing Commodity Manufacturing Others Actual Price & Mix* Actual Expense, fixed only) • +4% volume increase • Strategic inv
Slide 8: 1H 2022 NARTD Beverage Sales Volume (vs 2021)
1H 2022 NARTD Beverage Sales Volume (vs 2021) Volume grew by 4%. Immediate consumption channels (VM, CVS) grew from initiatives to capture traffic recovery. SM, D&D impacted by volume declines immediately after the price revision. Wholesale revenue per case turned positive in SM, D&D with price revi
Slide 9: Building a Foundation for Value Share Growth
Building a Foundation for Value Share Growth 1H total channel value market share grew by 0.8 pts. Vending value share grew by 2.7 pts and previously challenged OTC channel turned positive with the contribution of Q2. Large PET retail price turn positive with price revision. Expanding premium vs mark
Slide 10: Price Revision Progress
Price Revision Progress Initiatives including Large PET pricing to build future earnings foundations are on track SM, DD: Q2 wholesale revenue VM: Growing volume while improving per case +52 yen wholesale revenue per case (Q2: +29 yen) - Price revision for large PET implemented ahead of - Strengthen
Slide 11: Volume Growth Capturing Increased Demand
Volume Growth Capturing Increased Demand Leveraging the foundation built to date to capture traffic recovery and heat wave demand Strong Commercial Activities Improved S&OP Process - Investments to increase vending machine - Record levels of product shipment achieved in placements, expand sales spac
Slide 12: Marketing Update
Marketing Update
Slide 13: 2022 Q2 Initiative Review
2022 Q2 Initiative Review Drove Core growth for Coke, Georgia, COSTA, Ayataka & Accelerated profitable growth with new Innovations Coca-Cola TM GEORGIA & COSTA Grew revenue with Coke Music Summer/Zero Lemon Expanded market share with Summer campaigns & promoted ESG through 100% recycled PET label-le
Slide 14: 2022 Q3 Initiative Highlights (Jul-Aug)
2022 Q3 Initiative Highlights (Jul-Aug) Expand users base and drinking occasion through Core enhancement & New innovations Coke Zero The Artist Marshmello’s Limited Edition FANTA Engage Gen Z’s with unexpected collaboration of FANTA Summer Mix for Family Coke x Marshmello & Collaboration with NiziU
Slide 15: 2022 Marketing Strategy
2022 Marketing Strategy Strengthen the Core & Grow year-2 and selective 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 15 15
Slide 16: 2H 2022 Outlook
2H 2022 Outlook
Slide 17: 2H 2022 Business Environment
2H 2022 Business Environment Overall NARTD Market Recovering Since 2022 March Resurgence of New COVID Cases Total Market Volume Growth (YoY) 250,000 Number of new cases, severe patients 600 # of new cases # of severe patients 15 500 200,000 10 # of severe patients # of new cases 400 5 150,000 YoY (%
Slide 18: 2H Outlook: Expected Risks and Opportunities
2H Outlook: Expected Risks and Opportunities Additional costs expected from commodity & forex; offset by further growth opportunities Risks Opportunities • Higher prices than initially • Leverage the growth foundation expected and additional cost Capturing Traffic we have built Commodity impact is u
Slide 19: ESG Initiatives
ESG Initiatives Steady progress creating shared value Excellence in ESG Initiatives Packaging Initiatives • Piloted sales of shrink label products made partly • Certified Green Partner 2022 by the Forestry from chemically recycled used and discarded labels Agency • Established a Bottle to Bottle sys
Slide 20: Summary
Summary 1H leveraged the growth foundation and supply base we have built, captured traffic recovery and heat wave demand, and achieved volume growth. Efforts to improve profitability, including price revision for large PET is making steady progress and showing results. Initiatives are progressing, b
Slide 21: Appendix
Appendix Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 22: NARTD Channel / Category / Package Sales Volume
NARTD Channel / Category / Package Sales Volume Q2 Sales Volume (April – June) +4% By Channel Wholesale By Package Package Volume 5% Channel Volume revenue per case (Yen) S-PET +5% 1H 3% M-PET +39% Supermarket (SM) -8% +56 16% 24% 9% L-PET -7% Drug & Discounter (D&D) -2% +48 6% Can -5% 40% Convenien
Slide 23: 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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