Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Q3 2021 Earnings Presentation
35 slides from Coca-cola Bottlers Japan's earnings presentation, Nov 12, 2021
Slide 1: Third quarter 2021 Earnings Presentation
Third quarter 2021 Earnings Presentation November 12, 2021 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & Chief Financial Officer (Posted to CCBJH website on November 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: Q3 2021 earnings presentation agenda
Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) Q3 2021 earnings presentation Overview and Situational Analysis Q3 2021 Results and 2021 Guidance Q&A 3
Slide 4: Overview and Situational Analysis
Overview and Situational Analysis
Slide 5: Q3 Overview – Surrounding environment
Q3 Overview – Surrounding environment Challenging operating environment; focusing on what we can control ✓ External factors impacted the market and our business; resulting in slow traffic recovery ✓ Faced with some challenges; action plans set in place ✓ Focus on what we can control; short term acti
Slide 6: Financial highlights
Financial highlights Sales volume increased by +2% YoY in Q3 and +2% Q3 year-to-date. New products contributed to the volume growth while overall business environment remains challenging. Consumer preference changes and channel mix resulted in Q3 year-to-date revenue decline of -2% YoY. Vending valu
Slide 7: Q3 2021 Results
Q3 2021 Results yi
Slide 8: Q3 YTD 2021 results vs. 2020
Q3 YTD 2021 results vs. 2020 Continued COVID-19 impact; cycling extensive one-time cost savings in 2020 Unit: Million JPY 2021 2020 YoY Q3 YTD Q3 YTD Continuing Operations (Beverage Business) Revenue 589,531 598,547 -1.5% Beverage Sales Volume (Million Cases) 351 343 +2% NARTD (Non-alcoholic ready t
Slide 9: Q3 YTD 2021 drivers of Business Income
Q3 YTD 2021 drivers of Business Income Volume recovery not enough to offset pricing and cost pressure 2020 Q3 YTD Volume, Price DME Commodity Manufacturing Others 2021 Q3 YTD Business & Mix* (Direct Marketing Business Income Expense, fixed only) Income 4.3 -13.1 • Resuming marketing investment restr
Slide 10: NARTD beverage volume performance by channel
NARTD beverage volume performance by channel Slow traffic recovery and heavy rain impacted volume recovery to 2% SM, D&D: Sparking, NST and large size PET growth in Q3 YTD total volume +2% water, benefitting from rise in at home consumption By channel CVS: Strategically implemented 950ml PET contrib
Slide 11: NARTD beverage volume performance by category
NARTD beverage volume performance by category Q3 YTD total volume +2% By category Sparkling: 500ml PET volume dropped with adverse weather during summer, but premium products Vs. PY Volume such as Fanta Premier contributed and flat YoY 5% Sparkling Flat NST: New products Yakan Barley Tea from Hajime
Slide 12: Building a foundation for value share growth
Building a foundation for value share growth Vending, SM, D&D market share growth YTD Market Share Value Volume OTC Retail Price Vs. Market (Jan. to Sep., vs. PY, PP) Vs. PY (Jan. to Sep., JPY per bottle) Average VM +4.3 +4.6 Small PET +4.8 -1.9 OTC -0.3 +0.0 Large PET +21.2 -5.3 Data source standar
Slide 13: 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 year-end - Solid financial position:57.1% - Continued restraint in dividend of 25 yen/share equity ratio at e
Slide 14: Progress against 2021 target
Progress against 2021 target Focusing on the controllable and on target for full year Market share Recurring cost savings Capex Target Progress Revised Target Progress Revised Target Progress 9 B yen About 49 B yen 33.1 B yen 8 B yen Value share growth Recurring cost savings target Controlling capex
Slide 15: Marketing and Branding Highlight
Marketing and Branding Highlight
Slide 16: Update from Coca-Cola (Japan) Company, Limited
Update from Coca-Cola (Japan) Company, Limited 2021 Year-to-date Review 2021 Q4 Initiatives Highlight 16
Slide 17: 2021 Jan-Sep Year-to-date Review
2021 Jan-Sep Year-to-date Review Innovations & Coke ON contributed to KO Total NARTD value share gain (+1.0pts). Further opportunity lies in CORE growth (e.g. Coke & Georgia). Successful Innovations Coke ON experience expansion Opportunities in CORE growth ※※ ※※※※※ ※ 19% value share Reached 30mil+ d
Slide 18: 2021 Q4 Initiative Highlights
2021 Q4 Initiative Highlights Drive Core for Coca-Cola/Georgia and Continue to fuel Costa and Lemon-Dou with Innovation Coca-Cola Real Magic platform Georgia & Costa Lemon-Dou Ghost & Winter Portfolio Hot portfolio campaign ONI Homerun-size & Y2 Anniv. New Global campaign “Real Magic” Capture Fall-W
Slide 19: Strategic direction in 2022
Strategic direction in 2022 Further accelerate our strengths & improve growth opportunities FURTHER ACCELERATE PORTFOLIO ENHANCEMENT ROI OPTIMIZATION KO SYSTEM COLLABORATION Strengthen the CORE • Revenue growth + • MIX improvement Balanced Innovation (Channel/Portfolio) (Mainstream & Premium) • DME
Slide 20: Areas of Focus & Strategies
Areas of Focus & Strategies y.
Slide 21: Channel Strategies
Channel Strategies Despite the challenging environment, initiatives are showing results Supermarket, Online Vending Drugstore & Discounters Continue to grow value share for Growing where the growth is Strong volume growth 30 consecutive months Return to a market share growth trajectory, Capturing ch
Slide 22: Focus areas for building foundation towards growth trajectory
Focus areas for building foundation towards growth trajectory Actions plans in place to adapt to market change Areas of Focus Actions ✓Sales and supply chain collaboration As we attempted to meet sales demand ✓Leverage digital technology to meet demand more Agility to volatility, production costs an
Slide 23: ESG Initiatives
ESG Initiatives Steady progress in creating shared value New Target of Reduction of Greenhouse Gas Emission by 2030 Received Excellent Award in HR Award 2021 Coca-Cola system in Japan including CCBJH has formulated Our people strategy has won the Excellent targets to reduce greenhouse gas emissions
Slide 24: Staying true to our Mission, Vision & Value
Staying true to our Mission, Vision & Value 24
Slide 25: 2021 Guidance
2021 Guidance yi
Slide 26: FY 2021 operating environment
FY 2021 operating environment The current situation improving but environment remains uncertain COVID-19 cases now trending lower Guidance key elements Number of new cases, severe patients 30,000 New coronavirus 新規陽性者数 重症患者数 # of severe patients 2,500 25,000 cases ✓ Assuming no additional state of e
Slide 27: FY2021 Guidance
FY2021 Guidance Continued COVID-19 impact; continue to focus on building a strong foundation Unit: Million JPY 2021 FY 2020 FY YoY Plan Actual Continuing Operations (Beverage Business) Revenue 782,600 791,956 -1.2% Beverage Sales Volume (Million Cases) 467 458 +2% NARTD (Non-alcoholic ready to drink
Slide 28: FY2021 Guidance: Drivers of Business Income
FY2021 Guidance: Drivers of Business Income COVID impact, cycling one-time cost savings in 2020 and commodity price rises Full-year 2020 Business Income Full-year 2021 Business Income 0.2 -15.9 -13.1 • Labor cost decrease and • Volume increase of the control of 1%, but impacted by • Marketing spend
Slide 29: FY2021 Guidance: Drivers of Business Income
FY2021 Guidance: Drivers of Business Income Full-year 2020 DME Volume, Price Full-year 2021 Plan Actual (Direct Marketing Commodity Manufacturing Others & Mix* Business Business Expense, fixed only) Income Income 0.2 -41 -15.9 -14.4 -6.3 +0.7 +6.5 -2.7 Unit: B JPY (Rounding off less than unit) *Volu
Slide 30: Key Takeaways
Key Takeaways yy
Slide 31: Key Takeaways
Key Takeaways Despite challenging operating environment, key initiatives are working including market share expansion, growing where the growth is, and transformation initiatives. Full-year guidance reflects a certain subsiding of the COVID-19 impact in Q4. However, expect the impact from competitiv
Slide 32: Citta
Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 33: Appendix
Appendix Citta BOTTLERS JAPAN HOLDINGS INC.
Slide 34: NARTD channel/category/package volume performance
NARTD channel/category/package volume performance Q3 QTD 2021 (July to September) volume: +1% By package By channel vs PY Volume Wholesale Q3 YTD 2021 Vs. PY Volume revenue 5% S-PET +3% 4% 1% per case 2% M-PET +86% Supermarket (SM) +5% -20Yen 7% L-PET +7% 5% 13% Drug & Discounter (D&D) +6% -30Yen Ca
Slide 35: 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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