Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola East Japan — Q2 2016 Earnings Presentation
27 slides from Coca-cola Bottlers Japan's earnings presentation, Aug 15, 2016
Slide 1: Q2 & Year-to-Date 2016 Earnings Presentation
Coca-Cola East Japan Q2 & Year-to-Date 2016 Earnings Presentation Calin Dragan, CEO Jawahar S.K., CFO August 15, 2016 (Posted to CCEJ Website August 12, 2016) コカ･コーライーストジャパン株式会社 www.ccej.co.jp
Slide 2: Forward-Looking Statements
CCEJ Q2/YTD 2016 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 East Japan Co. Ltd. (CCEJ) in view of data obtained as of the date this material was released. These foreca
Slide 3: Q2 & YTD 2016 Earnings Presentation
CCEJ Q2/YTD 2016 Q2 & YTD 2016 Earnings Presentation Introduction •Overview and Key Messages Second Quarter and Year-to-Date (YTD) Results •Volume, Share and Financial Results Second Half Outlook •Key Milestones and Initiatives コカ･コーライーストジャパン株式会社 3
Slide 4: Strong Results in the First Half of the Year
CCEJ Q2/YTD 2016 Strong Results in the First Half of the Year Significant YTD reported operating income growth – over four times prior year period Balanced value and volume share growth momentum continued YTD reported revenue grew 5%, driven by volume growth as well as the benefit of the integ
Slide 5: Delivering Tangible Results from Transformation
CCEJ Q2/YTD 2016 Delivering Tangible Results from Transformation A successful bottler integration model built on speed, scale, capabilities and synergy capture Solid Encouraging Strong Foundation Results Momentum コカ･コーライーストジャパン株式会社 5
Slide 6: Q2/YTD 2016 Sales Results
Q2/YTD 2016 Sales Results コカ･コーライーストジャパン株式会社
Slide 7: Solid Growth Across Categories, Channels
CCEJ Q2/YTD 2016 Solid Growth Across Categories, Channels Reported Volume Q1 Highlights •Strong start to the year– maintained positive YTD 2016 Q2 2016 momentum from Q4 2015 in Q1 +8.6% (+4.5%*) +3.4% •Benefit from Sendai acquisition in prior year Q2 Highlights +16% •Volume growth led by product inn
Slide 8: Revenue-Rich New Launches Driving YTD Growth
CCEJ Q2/YTD 2016 Revenue-Rich New Launches Driving YTD Growth Consumer-centric marketing activities More launches versus prior year in smaller packages & specific channels New Products/Revenue-Rich Innovations Georgia Ayataka iLohas Minute Maid Glaceau Georgia Aquarius The Premium Nigori Cider Y
Slide 9: Managing a Complex Environment: Innovation, Superior Execution and Focus on Revenue Growth
Managing a Complex Environment: CCEJ Q2/YTD 2016 Innovation, Superior Execution and Focus on Revenue Growth CCEJ Status CCEJ Actions in Q2 & Rest of Year • Stabilized Vending profitability • Coke ON smartphone machines & indoor locations positive • Revenue per case growth in Supermarket, Convenience
Slide 10: Initiatives to Stabilize Pricing are Working
CCEJ Q2/YTD 2016 Initiatives to Stabilize Pricing are Working CCEJ Selling Price OTC Retail Price Per-case selling price movement YoY CCEJ average retail price continues above market average reflects channel strategic priorities for both large and small packages. Decline versus prior year led by wat
Slide 11: Continued Market Share Recovery and Growth
CCEJ Q2/YTD 2016 Continued Market Share Recovery and Growth Market vs. Prior Year • Value and volume share growth momentum Share Q2 2016 YTD 2016 • Value share gains in Drug & Discounter, Supermarket and Convenience Store channels Value +0.5 +0.4 • Volume share gains in Coffee, Colas, Water and Teas
Slide 12: Performance by Channel
CCEJ Q2/YTD 2016 Performance by Channel Q2 Volume by Channel (% of total) Channel Volume Growth Others Supermarket 11% (SM) Drug & Vending (VM) 22% Discounter Nat’l Local vs. PY CVS D&D VM E&D 27% (D&D) SM SM 13% Q2 2016 +3% +20% -1% +6% -2% -1% Eating & Convenience Drinking (E&D) Store (CVS) YTD 20
Slide 13: Performance by Category
CCEJ Q2/YTD 2016 Performance by Category Q2 Volume by Category (% of total) Category Volume Growth Juice 4% Others Sparkling 13% Sports (SSD) 25% 10% vs. PY NST Water Coffee SSD Sports Juice Water Q2 2016 +3% +18% +9% +0% -9% -1% Teas 12% Coffee 21% YTD 2016 +9% +23% +15% +5% -4% +7% 16% ↓ Compariso
Slide 14: Q2/YTD 2016 Financial Results
Q2/YTD 2016 Financial Results コカ･コーライーストジャパン株式会社
Slide 15: Drivers of YTD Strong Operating Income Growth
CCEJ Q2/YTD 2016 Drivers of YTD Strong Operating Income Growth Q2 YTD 2015 Q2 YTD 2016 Comparable Supply Chain Comparable Savings DME Operating Operating Income Other Other Income -2,267 OPEX Subsidiaries Depreciation +789 -1,105 +1,132 Gross Profit +4,300 Impact of • Labor related • Higher volume •
Slide 16: Q2 YTD 2016 Financial Results Summary
CCEJ Q2/YTD 2016 Q2 YTD 2016 Financial Results Summary Significant Operating Income Improvement • Volume and revenue growth • Improved gross margin driven by strong supply chain efficiency improvement • SG&A increase led by marketing investment, partially offset by decrease in labor and distribution
Slide 17: Second Half Outlook
Second Half Outlook コカ･コーライーストジャパン株式会社
Slide 18: 2016 Coca-Cola Summer Campaign
CCEJ Q2/YTD 2016 2016 Coca-Cola Summer Campaign Another Great Campaign Continues “That’s Gold” Moment “ゴールドな瞬間”を、「コカ･コーラ」で味わおう！ コカ･コーライーストジャパン株式会社 18
Slide 19: Strong Execution of Coca-Cola Summer Campaign
CCEJ Q2/YTD 2016 Strong Execution of Coca-Cola Summer Campaign Market Impact Teams (MIT) deployed across CCEJ 450 associates participated in multi-day “big bang” activation of the market, across all channels Guests from multiple international Coca-Cola operations participated CCEJ employees al
Slide 20: Key Milestones/Initiatives for Rest of Year
CCEJ Q2/YTD 2016 Key Milestones/Initiatives for Rest of Year • Capitalize on the strong first half momentum by delivering Q3 plan • Maintain focus on strategic initiatives • Stabilize profitability of vending channel • Drive revenue growth initiatives across channels • Full rollout of Route-To-Marke
Slide 21: Delivering Tangible Results from Transformation
CCEJ Q2/YTD 2016 Delivering Tangible Results from Transformation A successful bottler integration model built on speed, scale, capabilities and synergy capture Solid Encouraging Strong Foundation Results Momentum On-track to deliver full-year operating income of at least 14 billion yen in 2016 コカ･コー
Slide 22: Appendix
Appendix コカ･コーライーストジャパン株式会社
Slide 23: Drivers of Q2 2016 Operating Income
CCEJ Q2/YTD 2016 Drivers of Q2 2016 Operating Income Q2 2016 Q2 2015 Comparable Supply Chain DME Other Other Depreciation Comparable Synergies Subsidiaries Operating OPEX Operating Income Income -916 -151 +122 +634 • Higher volume • Labor related • Weakness in • CAPEX timing Gross Profit +2,742 • Up
Slide 24: Q2 2016 Financial Results Summary
CCEJ Q2/YTD 2016 Q2 2016 Financial Results Summary • Slight decline of revenue due to decrease of sales to other Coca-Cola bottlers • Improved gross margin driven by strong supply chain efficiency improvement • SG&A decrease led by cycling of PY (labor, logistics, etc.), partly offset by marketing i
Slide 25: The Coca-Cola System
CCEJ Q2/YTD 2016 The Coca-Cola System A powerful partnership driving growth of the Coca-Cola business The Coca-Cola system in Japan consists of the Coca-Cola (Japan) Company (CCJC), bottlers and other related companies. CCJC, as the franchise owner, is responsible for supplying concentrate and bever
Slide 26: Glossary of Frequently Used Terms
CCEJ Q2/YTD 2016 Glossary of Frequently Used Terms CDE Abbreviation of Cold Drink Equipment. Vending machines, coolers and beverage dispensers, etc. DME Abbreviation of Direct Marketing Expenses. Sales promotion-related expenses reported in advertisement & sales promotion expenses and partly in sale
Slide 27: Thank You
THANK YOU Coca-Cola East Japan Q2/YTD 2016 Earnings Presentation August 15, 2016 <Inquiries> Investor Relations Coca-Cola East Japan ir@ccej.co.jp +81-3-5575-3797 http://investor.ccej.co.jp/ コカ･コーライーストジャパン株式会社