Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola West Company — Q3 2009 Earnings Presentation
50 slides from Coca-cola Bottlers Japan's earnings presentation, Oct 30, 2009
Slide 1: Third Quarter 2009 Results
Third Quarter 2009 Results October 30th, 2009 Coca-Cola West Company, Limted(2579) Contact Investor Relations TEL +81-92-641-8590 FAX +81-92-632-4304 URL http://www.ccwest.co.jp/english E-mail shigeki-okamoto@ccwest.co.jp
Slide 2: Contents
Contents Ⅰ．3Q (Jul-Sep) Results Ⅱ．Full year Plan / 4Q Plan Ⅲ．Toward 2010 1
Slide 3: Summary
Summary ¾ Sales volume : 3Q : -4.6% (vs. plan), -4.4% (vs. last year) 【Main factor for decrease】 Unfavorable weather in July 3Q weak economy results ¾ Financial results ： Operating income fall short of guidance due to the short of sales volume and decrease of market price 【Earning forecast】 We chang
Slide 4: Ⅰ. 3Q Results
Ⅰ. 3Q Results 3
Slide 5: 3Q (Jul-Sep) Sales volume
3Q (Jul-Sep) Sales volume 3Q 2009 vs. plan *1 vs. last year *2 (thousand cases, %) actual change % change % Sales volume 53,454 -2,564 -4.6 -2,438 -4.4 *1 The plan is based on the performance forecast announced as of July 31, 2009. *2 Changing quantity equivalent in some products, we adjust sales vo
Slide 6: 3Q (Jul-Sep) Sales volume by Brand
3Q (Jul-Sep) Sales volume by Brand 3Q 2009 vs. plan *1 vs. last year*2 (thousand cases, %) actual change % change % Coca-Cola 4,001 -438 -9.9 -257 -6.0 Coca-Cola Zero 1,764 -487 -21.6 +316 +21.8 B I Fanta 3,092 -268 -8.0 -83 -2.6 G Georgia 9,839 +89 +0.9 +186 +1.9 Sokenbicha 4,453 -150 -3.3 -427 -8.
Slide 7: Brand - Big 6 Coca-Cola, Coca-Cola Zero
Brand - Big 6 “Coca-Cola”, “Coca-Cola Zero” ■Changing consumer taste to zero-calorie, sales of Coca-Cola Zero has done well. Sales of Red & Zero has grew since year of 2007. ¾ Coca-Cola Zero : +21.8%(vs. ly) ¾ Coca-Cola Zero + Coca-Cola Red : +1.0% (vs. ly) Sales volume of Coca-Cola & Coca-Cola Zero
Slide 8: Brand - New product I LOHAS
Brand - New product “I LOHAS” ■ “I LOHAS” has been selling well since its launch on May 18, especially in CVS. CVS market share of mineral water (YOY) 25 +21.2 20 （Points） +17.9 May 18 +16.8 +15.9 15 “I LOHAS” launched 10 +4.5 5 +0.9 +1.4 +1.2 +0.9 0 Jan Feb Mar Apr May Jun Jul Aug Sep Source: Intag
Slide 9: 3Q (Jul-Sep) Sales volume by Channel
3Q (Jul-Sep) Sales volume by Channel 3Q 2009 vs. plan *1 vs. last year*2 (thousand cases, %) actual change % change % Supermarket *3 16,516 -441 -2.6 +615 +3.9 Chain CVS 5,332 -221 -4.0 -116 -2.1 store sub-total 21,848 -662 -2.9 +500 +2.3 Vending 16,621 -1,442 -8.0 -2,152 -11.5 Retail 4,114 -114 -2.
Slide 10: Channel - Market share in supermarket
Channel - Market share in supermarket ¾Market share in supermarket has grown up since 1Q 2008. Supermarket market share (YOY) (points) +1.5 +1.6 +1.3 +0.7 +0.4 +0.1 +0.2 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 Source： Intage 9
Slide 11: 3Q (Jul-Sep) Channel - Vending
3Q (Jul-Sep) Channel - Vending ■Sales conditions by vending location type (vs. last year) ¾Sales in July fell especially out-door locations, impacted on unfavorable weather. ¾Sales have been weak in occupational field due to the severe employment situation, financial savings and also effected on one
Slide 12: Reform of sales (main activities in 3Q)
Reform of sales (main activities in 3Q) 3Q activities Result/evaluation 3Q sales : +2.3%(YOY) Strengthening investment and driven by core customers sales activities to core accounts Gold ： +7.6%, Silver ： +13.1%, Chain store Bronze ： -0.3% Improve profitability for each account Make P/L by each cust
Slide 13: 3Q (Jul-Sep) Sales volume by channel / package
3Q (Jul-Sep) Sales volume by channel / package (thousand cases, %) *1 ■Chain store 3Q 2009 vs. plan vs. last year*2 actual change % change % Large PET （1.5～2.0L） 10,820 -98 -0.9 +87 +0.8 Small PET （～1.0L） 6,203 -488 -7.3 +225 +3.8 Can 4,334 +81 +1.9 +313 +7.8 Other 492 -157 -24.2 -126 -20.4 Total 21
Slide 14: Reform of SCM
Reform of SCM 3Q activities Strengthening of Establish the supply system collaborated with sales and SCM functions corporation →Strengthen communication with sales department between sales and →New launch system in line with CCW intentions SCM functions Establish the supply system collaborated with
Slide 15: 3Q (Jul-Sep) Results
3Q (Jul-Sep) Results (thousand cases, million yen,%) 3Q 2009 3Q 2009 vs. plan 3Q 2008 vs. last year actual planl*1 change % actual*2 change % Sales 53,454 56,018 -2,564 -4.6 55,892 -2,438 -4.4 volume Revenues 107,033 115,500 -8,466 -7.3 114,632 -7,598 -6.6 Gross profit 46,227 52,400 -6,173 -11.8 47,
Slide 16: 3Q (Jul-Sep) results - Change factors (vs. plan)
3Q (Jul-Sep) results - Change factors (vs. plan) 3Q 2009 3Q 2009 (100 million yen) change plan* actual Main factors for increase/decrease change ・子Impact on decrease of sales volume -68.2 Revenues 1,155 1,070 -84 ・ Sales to other bottlers -16.3 ・ Impact on decrease of sales volume -54.5 Gross profit
Slide 17: Operating income change factors (vs. plan)
3Q (Jul-Sep) Results - Operating income change factors (vs. plan) (100 million yen) Marginal Sales volume in vending profit -1,442 thousand cases, by decrease etc of sale Volume -24 Increase of cost of sales Discount by decrease of -10 production volume Shipping 77 -14 cost Disposal Reduction of fix
Slide 18: 3Q (Jul-Sep) Results - Change factors (vs. last year)
3Q (Jul-Sep) Results - Change factors (vs. last year) 3Q 2008 3Q 2009 (100 million yen) change actual actual Main factors for increase/decrease change ・Impact on reform of SCM system -77.2 ・Impact on decrease of sales volume -79.7 Revenues 1,146 1,070 -75 ・Sales to other bottlers +78.5 ・Impact from
Slide 19: Operating income change factors (vs. last year)
3Q Results (Jul-Sep) - Operating income change factors (vs. last year) (100 million yen) Sales volume in vending Marginal -2,152 thousand cases, profit etc by decrease of sale volume -30 Personnel Contracted cost, etc Manufacture sales, etc 65 Discount Cost of sales -3 Disposal Reduction -10 Employe
Slide 20: 3Q Results (Jan-Sep)
3Q Results (Jan-Sep) (thousand cases, million yen,%) vs. plan 3Q 2008 vs. last year 3Q 2009 ※1 Plan actual change % actual※2 change % Sales volume 138,251 140,815 -2,563 -1.8 142,554 -4,303 -3.0 Revenues 284,221 293,700 -9,478 -3.2 303,202 -18,980 -6.3 Gross profit 125,192 131,800 -6,607 -5.0 126,91
Slide 21: Ⅱ. Full year / 4Q plan
Il. Full year 7 4Q plan 20
Slide 22: Full year - sales volume plan / performance forecast
Full year - sales volume plan / performance forecast We change the earning projections which released on May 1. (thousand cases, million yen, %) 2009 2008 vs. last year plan actual change % Sales volume * 180,377 186,409 -6,033 -3.2 Revenues 374,100 395,556 -21,456 -5.4 Gross profit 165,600 163,931
Slide 23: Full year - Extraordinary loss
Full year - Extraordinary loss (100 million yen) Jan-Sep Oct-Dec Full year Impairment loss on fixed 60 ー 60 assets※ Transfer lump-sum payment / early retirement bonus ー 45 45 Expense for provision for 7 20 27 sales equipment installation Group restructuring cost, 18 15 33 etc Total 85 80 166 ※Impair
Slide 24: Full year - Operating income change factors (vs. last year)
Full year - Operating income change factors (vs. last year) Sales volume in vending -4,194 thousand cases, (100 million yen) Marginal profit etc by decrease of sale volume -62 105 Personnel Personnel cost, etc cost, etc Discount Contracted manufacture -25 SCM system Cost of sales, etc Transitional E
Slide 25: 4Q (Oct-Dec) Sales volume plan / performance forecast
4Q (Oct-Dec) Sales volume plan / performance forecast (thousand cases, million yen, %) 4Q 2009 4Q 2008 vs. last year plan actual change % Sales volume * 42,126 43,855 -1,729 -3.9 Revenues 89,900 92,353 -2,453 -2.7 Gross profit 40,400 37,014 +3,386 +9.1 Operating income 500 815 -315 -38.7 Recurring i
Slide 26: 4Q (Oct-Dec) Consolidated P/L change factor vs. last year
4Q (Oct-Dec) Consolidated P/L change factor vs. last year (million yen, %) vs. last year 4Q 2008 4Q 2009 change % Revenues 92,353 89,900 -2,453 -2.7 Beverage 86,772 89,900 +3,128 +3.6 (sales in the territory) (85,544) (81,462) (-4,082) (-4.8) (sales to other bottlers) (1,228) (8,438) (+7,210) (+587.
Slide 27: 4Q (Oct-Dec) Sales volume
4Q (Oct-Dec) Sales volume Brand Channel (thousand cases, %) (thousand cases, %) 4Q 2009 vs. last year*1 4Q 2009 vs. last year*1 plan plan change % change % Coca-Cola 3,005 +138 +4.8 Supermarket *2 9,935 +456 +4.8 Coca-Cola Zero 1,388 +455 +48.7 CVS 4,742 -77 -1.6 B I Fanta 1,848 -53 -2.8 Chain Store
Slide 28: 4Q (Oct-Dec) Sales volume by channel/package
4Q (Oct-Dec) Sales volume by channel/package (thousand cases, %) ■Chain store 4Q 2009 vs. last year* plan change % Large PET （1.5～2.0L） 6,330 +171 +2.8 Small PET （～1.0L） 4,608 +319 +7.4 Can 3,569 +4 +0.1 Other 170 -116 -40.4 Total 14,678 +379 +2.6 (thousand cases, %) ■Vending 4Q 2009 vs. last year*
Slide 29: 4Q (Oct-Dec) Activities points
4Q (Oct-Dec) Activities points Reform of sales organization toward 2010 4Q activity points Strengthening investment and sales activities to core accounts → Gold +8.8％ Silver +8.8％ Bronze +2.2％ Collective function of chain Chain store store department Offer the profitable items such as Georgia or 500
Slide 30: Brand strategy - Georgia
Brand strategy - “Georgia” Improve brand value Strengthen core flavors “European” (low sugar) renewal (end of August) Launch new product “VINTAGE” Improve brand royalty New campaign 「Welcome to Georgia world」 Royalty program 「Autumn-winter promotion」 Provide a new drinking scene 「Gohobi Break」 Royal
Slide 31: Vending business
Vending business Business alliance / M&A with vending operators Business alliance M&A Schedule March, 2010(Plan) September 30, 2009 Company name APEX： WEX： Vending operator Vending operator Number of VM 26,000 units 3,300 units in CCW area APEX establishes a company that CCW takes WEX’s stock and ma
Slide 32: Growth strategy of vending business
Growth strategy of vending business In-door strategy Out-door strategy Growth of Coca-Cola products Sales growth by merger / sales business alliance with Efficiency of cup-vending Coca-Cola West Group vending operators machine operation 270,000 units Reduction of vending Reduction of vending machine
Slide 33: Ⅲ. Toward 2010
lil. Toward 2010 32
Slide 34: Functionally integrated Coca-Cola West Group
Functionally integrated Coca-Cola West Group Integration of Integration of manufacturing logistic companies companies (2007) (2008) Coca-Cola West Coca-Cola West Products Logistics Integration of Holdings and bottlers (2009) Coca-Cola West Integration of sales equipment Restructuring of sales servic
Slide 35: Toward 2010: Points of making business plan in 2010
Toward 2010 Points of making business plan in 2010 Downsizing of sales structure Downsizing of head office departments Revise of personnel ／ revise the personnel system Restructuring of SCM structure ⇒review / renewal of equipment ⇒reduction of inventory carrying cost / shipping cost Establish a rob
Slide 36: Reference
L Reference |] 35
Slide 37: Channel - 3Q by brand/by channel Volume/Revenues/GP
3Q (Jul-Sep) - By brand/by channel Volume/Revenues/GP 3Q 2008 3Q 2009 100％ Other 34％ 36％ 33％ 35％ Aquarius 42％ 44％ Brand Soukenbicha 14％ 11％ 13％ 11％ 15％ 8％ 14％ 9％ 9％ Georgia 9％ 9％ 8％ Fanta 29％ 28％ 29％ 26％ Coca-Cola 17％ 18％ Zero 6％ 6％ 6％ 6％ 6％ 6％ 3％ 3％ 3％ 3％ 3％ 3％ Coca-Cola 8％ 8％ 7％ 7％ 8％ 7％ Sales vol
Slide 38: Channel - Nine months by brand/by channel
Nine months - By brand/by channel Volume/Revenues/GP Nine months 2008 Nine months 2009 100％ Other 34％ 36％ 33％ 33％ Aquarius 45％ 44％ 10％ 10％ 9％ Brand Sokenbicha 8％ 11％ 8％ 7％ 11％ 8％ 8％ Georgia 8％ 8％ Fanta 33％ 35％ 33％ 35％ Coca-Cola 22％ 22％ Zero 5％ 6％ 5％ 5％ 6％ 5％ 2％ 2％ 2％ 3％ 3％ 3％ Coca-Cola 7％ 7％ 7％ 7％ 7
Slide 39: Nine months - Sales volume by brand
Nine months - Sales volume by brand 2009 vs. plan *1 vs. last year*2 (thousand cases, %) Nine months change % change & Coca-Cola 10,036 -438 -4.2 +99 +1.0 Coca-Cola Zero 4,333 -487 -10.1 +1,235 +39.9 B I Fanta 7,321 -268 -3.5 -35 -0.5 G Georgia 30,064 +89 +0.3 -738 -2.4 Sokenbicha 10,516 -150 -1.4 -
Slide 40: Nine months - Sales volume by channel
Nine months - Sales volume by channel 2009 vs. plan *1 vs. last year*2 (thousand cases, %) Nine months change % change % Supermarket*3 38,016 -441 -1.1 +2,248 +6.3 CVS 14,161 -221 -1.5 -124 -0.9 Chain store 52,177 -662 -1.3 +2,123 +4.2 Vending 46,204 -1,442 -3.0 -4,194 -8.3 Retail 10,367 -114 -1.1 -
Slide 41: 3Q (Jul-Sep) - Sales volume by package
3Q (Jul-Sep) - Sales volume by package (thousand case, %) 3Q 2009 vs. plan *1 vs. last year *2 actual change % change % Bottle 585 +44 +8.2 -5 -0.8 ～ 1,000ml 12,540 -845 -6.3 -273 -2.1 PET 1,001ml ～ 11,693 -258 -2.2 +40 +0.3 subtotal 24,233 -1,104 -4.4 -232 -0.9 Can (include bottle can) 16,069 -1,15
Slide 42: Nine months - Sales volume by package
Nine months - Sales volume by package (thousand case, %) Nine months 2009 vs. plan *1 vs. last year *2 actual change % change % Bottle 1,512 +44 +3.0 -22 -1.4 ～ 1,000ml 30,239 -845 -2.7 -622 -2.0 PET 1,001ml ～ 26,792 -258 -1.0 +1,120 +4.4 subtotal 57,031 -1,104 -1.9 +498 +0.9 Can (include bottle can
Slide 43: Nine months - Sales volume by package
Nine months - Sales volume by package ■Chain store （thousand cases, %） Nine months vs. plan*1 vs. last year*2 2009 actual change % change % Larger PET （1.5～2.0L） 24,521 -98 -0.4 +1,165 +5.0 Small PET （～1.0L） 15,004 -488 -3.2 +692 +4.8 Can 11,541 +81 +0.7 +344 +3.1 Other 1,111 -157 -12.4 -78 -6.6 Tot
Slide 44: Channel - OTC Market share (exclude VM)
Channel - OTC Market share (exclude VM) (points, %) 100％ Other 41.8% 39.9% 39.1% 40.9% 41.8% ＋0.4 5.5% ＋0.2 5.7% -0.3 D 5.8% 6.1% ±0.0 5.7% -0.1 6.8% ＋0.5 6.6% ＋0.4 C 6.5% ＋0.6 6.5% ＋0.3 6.6% ＋0.1 8.8% -0.2 8.6% -0.2 B 8.4% ＋0.5 8.7% -0.3 8.0% -0.4 A 15.1% ＋0.6 16.2% ＋1.2 16.9% ＋1.4 16.3% ＋0.8 15.4%
Slide 45: Performance trend
Performance trend (million yen) 2009 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 plan Net sales 117,991 164,731 207,827 226,111 247,737 240,825 253,248 245,874 327,821 409,521 395,556 374,100 Operating 12,533 15,160 17,449 16,634 16,704 19,638 16,860 11,830 12,321 16,056 10,521 2,000 inco
Slide 46: Financial Data
Financial Data ＜Operating Income/Operating Income Ratio＞ ＜Net Assets / Equity Ratio＞ 20,000 10 90 16,860 Operating 300,000 Net Assets 16,056 254,025 income ratio Operating 8 Equity Ratio 250,463 234,521 15,000 income 250,000 11,83012,321 173,608 85 10,521 6 200,000 167,036 6.7 82.1 80.5 84.4 10,000
Slide 47: Coca-Cola System in Japan
Coca-Cola System in Japan Investment(percentage of shares) (as of September, 2009) ⑤ Coca-Cola National Beverages (25.0％) Co., Ltd (3.9％) Coca-Cola West Coca-Cola (CCNBC) ⑥ Co., Ltd (CCW) ① Tokyo Research （100％） & Development Co., Ltd (20.0％) Coca-Cola (15.0％) (CCTR&D) ④ Beverage Service Minami Kyus
Slide 48: Coca-Cola Related Companies and Their Roles
Coca-Cola Related Companies and Their Roles 1. Coca-Cola West Co., Ltd. (CCW) 6. Coca-Cola National Beverages Co., Ltd. (CCNBC) In 2006, CCWJ and Kinki CCBC merged the management of Jointly established in April 2003 by TCCC and CCBCs for the both companies by establishing a joint holding company pur
Slide 49: Glossary
Glossary 1. Channel (Business Unit) Out-market vending machine: Vending: An outdoor machine whose users are relatively Retail sale business to distribute products unspecific through vending machines to consumers In-market vending machine: Chain store: An indoor machine whose users are relatively spe
Slide 50: 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 — Q3 2009 Earnings Presentation on 6ix