Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola West Company — Q2 2016 Earnings Presentation
45 slides from Coca-cola Bottlers Japan's earnings presentation, Aug 15, 2016
Slide 1: Results briefing for the 2nd quarter of Fiscal Year ending December 2016
Results briefing for the 2nd quarter of Fiscal Year ending December 2016 August 15, 2016 Coca-Cola West Company, Limited (2579) [Contact]Planning Department (IR team) TEL 092-641-8774 FAX 092-632-4304 [URL] http: //www.ccwest.co.jp/ [E-mail] koji-nakagawa@ccwest.co.jp
Slide 2: Agenda
Agenda I. Account settlement for 1H II. Activity Plan for 2H and full-year [Reference] Q2 (April-June) financial results Trend of OTC market share Mix by brand/by channel Sales update on vending machines by channel Q2 Actual sales volume (by channel and by package) 2H Volume target Performance trend
Slide 3: I. Account settlement for 1H
I. Account settlement for 1H 2
Slide 4: 1H Sales Volume (Jan-June)
Coca-Cola business 1H Sales Volume (Jan-June) Vs. Plan ・ Total sales volume delivered +2.5%, exceeding plans both in Q1 and Q2. ・ Partly attributable to incorporating Shikoku CCBC, Jan-June volume turned positive by 13.6%. Vs. PY ・ CCW volume during Jan-June was a positive 4.6%. [Sales volume] Actua
Slide 5: Sales volume by channel
Coca-Cola business Sales volume by channel Vs. Plan ・ All key channels except for Food Service finished exceeding the volume plans. ・ Volume in Supermarket and Convenience Store turned positive both in Q2 and in total, Vs. PY partly contributed by the sales of new products launched after March. Vs.
Slide 6: Sales volume by package
Coca-Cola business Sales volume by package Vs. Plan ・ Sales volume of key packages exceeded the plans. ・ Highly profitable SS PET grew ahead of LS PET. ・ New product of Georgia Café Bottle Coffee (950ml PET) and Coca-Cola 1.0 L PET Vs. PY contributed to the growth of Midi PET. ・ Sales volume of CAN
Slide 7: Sales volume by brand
Coca-Cola business Sales volume by brand ・ Launch of seasonally-limited design bottles aligned with the campaign contributed to the sales of Coca-Cola and Coca-Cola Zero exceeding the plans. Vs. Plan ・ Georgia, Ayataka and I Lohas steadily made solid growth with new products. ・ Volume of Sokenbicha
Slide 8: Status of RGM initiatives in Supermarket
Coca-Cola business Status of RGM initiatives in Supermarket ■ Revenue per case improved from prior year in all channels of Supermarket, Drug store and Discounter with good progress of RGM initiatives. WSP increase × Product mix improvement × Sales volume growth Ensured sales activities based on the
Slide 9: Initiatives for transformation of Vending business
Coca-Cola business Initiatives for transformation of Vending business ■ We have begun to see solid results of initiatives for revenue growth and profitability enhancement. For revenue growth For profitability enhancement Improve unprofitable locations Capturing prime locations [Number of withdrawal
Slide 10: 1H Financial results (Jan-June)
Consolidated 1H Financial results (Jan-June) ■ Consolidated operating profit closed at 8.8 Billion JPY. → Increase of 4.3 Billion JPY v. Plan and 6.4 Billion JPY v. PY. (unit: MM JPY, %) Vs. Plan Vs. PY* 1H 2016 1H 2015 Plan actual Diff Diff % actual Diff Diff % Revenue 219,306 213,500 +5,806 +2.7 2
Slide 11: 1H Financial results - Key drivers (v. Plan)
Consolidated 1H Financial results (Jan-June)-Key drivers (v. Plan) (Unit: 100MM JPY) Plan 1H actual Diff Key drivers Diff ・Coca-Cola Business (CCW＋Shikoku CCBC) +63.4 Revenue 2,135 2,193 +58 ・Healthcare & Skincare Business -5.3 ・Coca-Cola Business (CCW＋Shikoku CCBC) +32.1 Gross profit 1,103 1,134 +3
Slide 12: 1H Financial results - Drivers of operating profits (v. Plan)
Consolidated 1H Financial results (Jan-June)-Drivers of operating profits (v. Plan) Coca-Cola business finished with Operating profit exceeding the plan by 3.5 Billion JPY. Marginal profit turned positive by 1.6 Billion JPY thanks to Volume exceeding the plan as well as growth of Revenue per-case. I
Slide 13: 1H Financial results - Key drivers (v. PY)
Consolidated 1H Financial results (Jan-June)-Key drivers (v. PY) (Unit: 100MM JPY) PY actual* 1H actual Diff Key drivers Diff ・Coca-Cola Business (CCW＋Shikoku CCBC) +181.4 Revenue 2,009 2,193 +183 ・Healthcare & Skincare Business +1.7 ・Coca-Cola Business (CCW＋Shikoku CCBC) +118.9 Gross profit 1,012 1
Slide 14: 1H Financial results - Drivers of operating profit growth (v. PY)
Consolidated 1H Financial results (Jan-June)-Drivers of operating profit growth (v. PY) Coca-Cola business finished with Operating profit exceeding PY by 5.8 Billion JPY. In addition to Marginal profit turning positive by 1.3 Billion JPY with Volume contributions from Chain store, growth of Revenue
Slide 15: II. Activity Plan for 2H and full-year
II. Activity Plan for 2H and full-year 14
Slide 16: 2H (July-Dec) Volume plan
Coca-Cola business 2H (July-Dec) Volume plan ■ We project 2H volume plan as initially planned to be ＋0.2% v. PY (including Shikoku CCBC). Volume plan by channel Vs. PY Volume plan by brand Vs. PY 2H plan 2H plan (unit: K c/s, %) Diff Diff % (Unit: K cases, %) Diff Vs. PY % Vs. PY 2H plan Supermarket
Slide 17: Commercial strategies - Evolution of RGM in supermarket
Coca-Cola business Commercial strategies- Evolution of RGM in supermarket WSP increase × Product mix improvement × Sales volume growth Continued reinforcement of sales activities Cultivation of highly value-added based on price guideline products (more coverage) Stronger package lineup and making
Slide 18: Commercial strategies - Transformation of Vending business
Coca-Cola business Commercial strategies-Transformation of Vending business Promotion leveraging smartphone apps [# of VM implemented] 2H Plan 42,000 (Annual Plan：60,000) Revenue growth Distribute new product information, sampling coupons and campaign notices through smartphone app “Coke On”. Samp
Slide 19: Vending business: profitability enhancement
Coca-Cola business Commercial strategies-Transformation of Vending business Improvement of Review of trade terms Per-case revenue growth with variety of For profitability unprofitable locations with customers enhancement packages per locations [Number of withdrawal and [Profit contributions through
Slide 20: Commercial strategies - Stronger brand competitiveness
Coca-Cola business Commercial strategies-Stronger brand competitiveness ■ In line with Rio Olympic, introduce “Rio 2016 exclusive design bottle” and launch promotions targeting key brands to maximize sales in peak season. Products Promotions RIO 2016 exclusive design bottle Olympic host nation desig
Slide 21: Healthcare & skincare business - Commercial strategies
Healthcare & skincare business Commercial strategies ■ Reinforce home-shopping business and product development to drive revenue and profit growth after 2H. Reinforcement of home-shopping business Collaborations with Coca-Cola business Gain new consumers Launch of collaboration products (beverages)
Slide 22: 2H & Full-year Performance Plan (Consolidated)
Consolidated 2H(July-Dec) & Full-year (Jan-Dec)－ Performance Plan(Consolidated) ■ Full-year consolidated operating profit plan shall be revised upward by 4.5 Billion JPY from the initial plan to be 20.5 Billion JPY. (v. PY ＋6.2 Billion JPY) Consolidated [Full-year (Jan-Dec)] [2H(July-Dec)] (unit: (U
Slide 23: 2H & Full-year Performance Plan (by business)
Consolidated 2H(July-Dec) & Full-year (Jan-Dec)－ Performance Plan(by business) Coca-Cola business (CCW group＋Shikoku CCBC) [Full-year (Jan-Dec)] [2H(July-Dec)] (Unit: K c/s, MM JPY, %) (Unit: K c/s, MM JPY, %) Vs. PY 2H 2016 Plan 2016 Full-year Vs. PY Vs. Initial Plan Diff Diff % Plan Diff Diff % Di
Slide 24: Full-year - Drivers of operating profit growth (v. PY)
Consolidated Full-year (Jan-Dec) － Drivers of operating profit growth (v. PY) Aim to deliver consolidated operating profit of 20.5 Billion JPY, up 6.2 Billion JPY from prior year. Sales related ＋400 MM JPY: Further drive profitable revenue growth in Chain store & Vending SCM factors ＋700 MM JPY:
Slide 25: Dividends
Dividends ■ Dividends per share (projection) shall be revised based on the upward revision of 2016 performance forecast. [Per share] Ordinary dividend Interim dividend 21 yen (＋1 yen) Year-end dividend 23 yen (＋2 yen) Difference from PY indicated in ( ) Commemorative dividend *2 yen (＋2 yen) *Provid
Slide 26: Summary
Summary ■ 1H closed with Operating profit exceeding the plan by 4.3 billion JPY, delivering major profit gain of 6.4 billion JPY versus prior year. → Good progress of RGM initiatives in Supermarket in Coca-Cola business as a key task and activities in Vending for greater revenue and profits have sta
Slide 27: References
［ References ］ 26
Slide 28: Account settlement for Q2 (April-June)
Account settlement for Q2 (April-June) (unit: MM JPY, %) Vs. Plan Vs. PY* 2016 Q2 actual Plan 2015 Q2 actual Diff Diff % Diff Diff % Revenue 118,761 116,400 +2,361 +2.0 109,878 +8,883 +8.1 Gross prorfit 61,409 60,000 +1,409 +2.3 55,074 +6,334 +11.5 Operating income 6,673 4,800 +1,873 +39.0 3,677 +2,
Slide 29: OTC market share trends (excl. VM)
OTC market share trends (excl. VM) (Unit: %, pts) Other 31.3 31.1 30.8 31.5 33.0 D 7.9 7.4 8.0 8.3 7.7 -0.2 C 9.8 10.2 10.0 9.7 10.3 +0.5 B 12.8 12.7 11.7 11.0 11.1 -1.7 A 16.4 16.2 16.2 16.3 15.4 -1.0 CCW 21.8 22.4 23.3 23.2 22.5 +0.7 2015 Q2 Q3 Q4 2016 Q1 Q2 ・Values outside the graph show gap vs.
Slide 30: 1H Mix by brand/channel
1H (Jan – June) – Mix by brand/channel 2015 2016 Others I LOHAS 30％ 30％ 36％ 29％ 29％ 37％ Ayataka 7％ 7％ 8％ 8％ Aquarius 7％ Brand 6％ 7％ 8％ 8％ 8％ 8％ 6％ 6％ 9％ 5％ 5％ Soukenbicha 4％ 4％ 8％ 4％ 8％ 4％ Georgia 5％ 4％ Fanta 33％ 33％ 33％ 34％ 22％ 23％ Coca-Cola Zero 4％ 3％ 3％ 3％ 3％ 3％ Coca-Cola 3％ 3％ 3％ 3％ 3％ 3％ 7％ 7％
Slide 31: Q2 Mix by brand/channel
Q2 (April – June) – Mix by brand/channel 2015 2016 Others I LOHAS 29％ 30％ 35％ 28％ 28％ 36％ Ayataka 8％ 8％ 9％ 9％ Aquarius 7％ Brand 7％ 8％ 8％ 8％ 8％ Soukenbicha 8％ 8％ 7％ 9％ 7％ 7％ 10％ 4％ 4％ 4％ 4％ Georgia 9％ 5％ 5％ Fanta 30％ 30％ 31％ 31％ 20％ 21％ Coca-Cola Zero 4％ 4％ 3％ 3％ 3％ 3％ Coca-Cola 3％ 3％ 3％ 3％ 3％ 7％ 7％
Slide 32: Sales update on vending machines by cluster
Sales update on vending machines by cluster Vending machine full service CAN VPM* V. PY [CCW Area] Vs. PY (%) Ja n Feb Ma r Apri l Ma y June YTD total At-work (office) -2.2 ＋2.1 ＋0.0 -2.5 -1.6 -1.4 -1.0 At-work (plant) -2.8 ＋1.9 ＋1.8 -3.0 -2.5 -1.4 -1.0 Mass retailer -2.4 ＋1.6 -2.6 -4.2 -2.2 -2.9 -2
Slide 33: 1H Sales Volume by channel/package
1H (Jan – June) – Sales Volume by channel/package ■Chain store Vs. Plan Vs. PY 2016 1H actual (Unit: K cases, %) Diff % Diff % SS PET (smaller than 850ml) 16,558 +387 +2.4 +1,067 +6.9 Midi PET (less than 1,500ml ) 1,157 +285 +32.7 +559 +93.5 LS PET (1,500ml or larger) 19,133 +761 +4.1 +852 +4.7 Can
Slide 34: Q2 Volume by channel
Q2 (April-June) –Volume by channel Vs. Plan Vs. PY* Q2 actual (unit: K c/s, %) Diff Diff % Diff Diff % Super market/Drug/Discounter 18,969 +695 +3.8 +1,360 +7.7 Convenience store 7,352 +92 +1.3 +551 +8.1 Chain store total 26,321 +787 +3.1 +1,912 +7.8 Vending 17,204 +195 +1.1 -381 -2.2 Retail 3,020 +
Slide 35: Q2 Sales Volume by brand
Q2 (April – June) – Sales Volume by brand Vs. Plan Vs. PY*1 Q2 actual (unit: K c/s, %) Diff Diff % Diff Diff % Coca-Cola 3,958 -60 -1.5 +119 +3.1 Coca-Cola Zero 1,841 +86 +4.9 +164 +9.8 Fanta 2,008 -103 -4.9 -33 -1.6 Georgia 11,999 +357 +3.1 +844 +7.6 Core 8 Sokenbicha 2,689 +63 +2.4 +11 +0.4 Aquari
Slide 36: Q2 Sales Volume by package
Q2 (April – June) – Sales Volume by package Vs. Plan Vs. PY* Q2 actual (unit: K c/s, %) Diff Diff % Diff Diff % Small (less than 850ml) 16,567 -107 -0.6 +757 +4.8 Medium (less than 1,500ml) 864 +226 +35.3 +462 +115.2 PET Large (less than 1,500ml) 12,071 +388 +3.3 +413 +3.5 Total 29,502 +506 +1.7 +1,
Slide 37: Q2 volume by channel and package
Q2 (April-June)–volume by channel and package ■Chain store Vs. Plan Vs. PY Q2 actual (Unit: K cases, %) Diff Diff % Diff Diff % SS PET (smaller than 850ml) 9,124 -117 -1.3 +400 +4.6 Midi PET (less than 1,500ml ) 816 +217 +36.2 +453 +124.5 LS PET (1,500ml or larger) 11,251 +370 +3.4 +367 +3.4 Can (in
Slide 38: 2H Volume target by package
2H (July-Dec) –Volume target by package Vs. PY* 2H Plan (unit: K c/s, %) Diff Diff % Small (less than 850ml) 34,803 +1,792 +5.4 Medium (less than 1,500ml) 1,278 +438 +52.2 PET Large (less than 1,500ml) 25,249 -171 -0.7 Total 61,330 +2,060 +3.5 Can (incl. bottle can) 26,973 -880 -3.2 Other 7,703 +415
Slide 39: 2H Volume target by channel and package
2H (July-Dec) – Volume target by channel and package ■Chain store Vs. PY 2H Plan (Unit: K cases, %) Diff % SS PET (smaller than 850ml) 18,298 +511 +2.9 Midi PET (less than 1,500ml ) 1,184 +422 +55.4 LS PET (1,500ml or larger) 23,448 -289 -1.2 Can (incl. bottle CAN) 8,643 +63 +0.7 Other 683 -34 -4.8
Slide 40: Performance Trend
Performance Trend (Unit: MM JPY) 2016 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Plan Revenue 164,731 207,827 226,111 247,737 240,825 253,248 245,874 327,821 409,521 395,556 369,698 375,764 399,717 386,637 431,711 424,406 440,476 460,200 Operating 15,160 17,
Slide 41: KBI Trend
KBI Trend <Operating income & its ratio> <Net asset/capital ratio> 営業利益（百万円） Operating profits (MM JPY) 営業利益率（％） (%) Net純資産（百万円） assets (MM JPY) Ratio (%) (%) 自己資本比率（％） Capital ratio (%) 16,469 10 (MM JPY) (MM JPY) 15,927 100 14,262 300,000 15,000 13,463 8 257,936 254,140 260,878 11,008 250,000 227,
Slide 42: Coca-Cola System in Japan - Capital Relationship
Coca-Cola System in Japan – Capital Relationship Investments with figures indicate %; ( ) in total by CCW+ Shikoku (As of Jan 1, 2016) Joint companies of TCCC/CCJC ⑤ and bottlers Coca-Cola Integrated 21.1% Coca-Cola Business Systems 3.7% Co., Ltd. (CCIBS) (26.1%) West Co., ⑥ Ltd. (CCW) ① The Coca-Co
Slide 43: Coca-Cola affiliated companies and their roles
Coca-Cola affiliated companies and their roles 1. Coca-Cola West Co., Ltd. (CCW) 5. Coca-Cola bottlers (CCBCs) Coca-Cola West Japan (CCWJ) was established in 1999 by merging There are 7 bottlers in Japan responsible for manufacturing and Kitakyushu CCBC and Sanyo CCBC. CCWJ acquired ownership of Mik
Slide 44: Glossary
Glossary Term Explanation Business (segment) ・Coca-Cola business (soft drink business) Business to manufacture and sell soft drink beverages including Coca-Cola ・Healthcare & skincare business Business to manufacture and sell health food and cosmetics operated by Q'sai and their 5 subsidiaries Chann
Slide 45: Forward-looking statement
Forward-looking statement The plans, performance forecasts, and strategies appearing in this material are based on the judgment of the management in view of data obtained as of the date this material was released. Please note that these forecasts may differ materially from actual performance due to
Coca-Cola West Company — Q2 2016 Earnings Presentation on 6ix