Coca-cola Bottlers Japan Holdings Inc. · TSE:2579
Coca-cola Bottlers Japan — Coca-Cola East Japan — Q1 2016 Earnings Presentation
23 slides from Coca-cola Bottlers Japan's earnings presentation, May 16, 2016
Slide 1: Q1 2016 Earnings Presentation
Coca-Cola East Japan Q1 2016 Earnings Presentation Calin Dragan, CEO Jawahar S.K., CFO May 16, 2016 (Posted to CCEJ Website May 13, 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 Q1 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 forecasts
Slide 3: Q1 2016 Earnings Presentation Agenda
CCEJ Q1 2016 Q1 2016 Earnings Presentation Introduction •Overview and Key Messages First Quarter Results •Volume, Share and Financial Results Second Quarter and Full-Year 2016 •Key Milestones, Initiatives and Marketing Plan Business Integration MOU Between CCEJ & CCW コカ･コーライーストジャパン株式会社 3
Slide 4: Q1 2016 Overview and Key Message
CCEJ Q1 2016 Q1 2016 Overview and Key Message A solid start to the year; Positive trends from Q4 2015 continued in Q1 Revenue grew 13%, driven by volume growth as well as the benefit of the integration of Sendai Coca-Cola Bottling in April 1, 2015 Volume and value share growth; Recovery after
Slide 5: Q1 2016 Sales Results
Q1 2016 Sales Results コカ･コーライーストジャパン株式会社
Slide 6: Growth Across Categories, Channels & Packages
CCEJ Q1 2016 Growth Across Categories, Channels & Packages Reported Volume Consumer-centric marketing activities Q1 2016 Revenue-rich new launches across channels +15.8% (+5.9%*) Coca-Cola Global Georgia Campaign The Premium +20% “Taste The Feeling” Campaign +15% +14% Georgia Ayataka iLohas Vend
Slide 7: Strategic Focus on Stabilizing Pricing Environment
CCEJ Q1 2016 Strategic Focus on Stabilizing Pricing Environment Improved Wholesale Price OTC Retail Pricing Trends • Minimize unprofitable promotions through PTC • Pullback in heavy price promotions has continued initiatives from prior year • CCEJ average retail price continues above market A Major
Slide 8: Managing a Complex Pricing Landscape
CCEJ Q1 2016 Managing a Complex Pricing Landscape Impact on Q1 Rest of Q1 Trend Price/Mix 2016 CCEJ Actions • Polarization: Price conscious vs. • Strong Innovation pipeline Consumer premium products Neutral Continue • Profitable expansion in online Behavior • Rapid expansion of online channel Negati
Slide 9: Market Share Recovery and Growth
CCEJ Q1 2016 Market Share Recovery and Growth vs. Prior Year • Volume and value share growth after PTC initiatives in 2H 2015 Market Share • Share gains in Colas, Water, Teas and Coffee Q1 2016 • Value share gains in Convenience Store, Supermarket, Drug & Value +0.2 Discounter channels Volume +0.5 V
Slide 10: Performance by Channel
CCEJ Q1 2016 Performance by Channel Q1 Volume by Channel Channel Volume Growth (% of total) Others Supermarket Drug & 11% (SM) Discounter 20% (D&D) Vending (VM) 11% 28% Convenience Store Eating & (CVS) Nat’l Local vs. PY CVS D&D VM E&D Drinking (E&D) 16% SM SM 14% Q1 2016 +25% +32% +19% +13% +9% +14
Slide 11: Performance by Category
CCEJ Q1 2016 Performance by Category Q1 Volume by Category (% of total) Category Volume Growth Juice 5% Others Sparkling 13% Sports 6% (SSD) 25% Water 11% Teas Coffee 19% 22% vs. PY NST Water Coffee SSD Sports Juice Q1 2016 +18% +30% +21% +11% +9% +18% Volume YoY: Q1 +15.8% Comparison of volume grow
Slide 12: Q1 2016 Financial Results
Q1 2016 Financial Results コカ･コーライーストジャパン株式会社
Slide 13: Drivers of Q1 2016 Operating Income
CCEJ Q1 2016 Drivers of Q1 2016 Operating Income Supply Chain Synergies DME Q1 2015 Q1 2016 Gross Profit Comparable Impact of Comparable Operating Other Other volume, Subsidiaries Operating OPEX Income price/mix Income -1,351 +1,558 +666 Depreciation -392 • Volume growth +5.9% (incl. Q1 2015 -954 Se
Slide 14: Q1 2016 Financial Results Summary
CCEJ Q1 2016 Q1 2016 Financial Results Summary • Volume and revenue growth • Improved gross margin driven by manufacturing and procurement efficiency in line with plan • SG&A increase led by marketing investment, logistics, Sendai integration, etc. Q1 2016 Q1 2016 Q1 2016 Q1 2015 Vs. PY Reported One
Slide 15: Milestones/Initiatives
Milestones/Initiatives コカ･コーライーストジャパン株式会社
Slide 16: Key Milestones/Initiatives Rest of the Year
CCEJ Q1 2016 Key Milestones/Initiatives Rest of the Year • Keep focusing on delivering results • Continue working to improve profitability toward peak season • Vending task force fully deployed • “Coke ON” App and smart phone enabled vending machine deployment of 44K machines in 2016 to deploy loyal
Slide 17: Q2 2016 Strong Marketing & Innovation Plan
CCEJ Q1 2016 Q2 2016 Strong Marketing & Innovation Plan New Products/Revenue-rich Innovations YOGURSTAND Glaceau Georgia Cold Brew Georgia Pineapple/Peach Sleepwater Black/Café Latte European Bito Black Coca-Cola TM Global Campaign “Taste The Feeling” Core Brands Renewal/Innovations Georgia European
Slide 18: Business Integration MOU Between CCEJ and CCW
Business Integration MOU Between CCEJ and CCW コカ･コーライーストジャパン株式会社
Slide 19: Summary of the MOU Announcement on April 26
CCEJ Q1 2016 Summary of the MOU Announcement on April 26 • MOU agreed between CCEJ and CCW to proceed with discussions/review of a business integration opportunities • MOU supported and signed by The Coca-Cola Company • Combined Sales Territories: • Background & objective of proposed business Integr
Slide 20: Appendix
Appendix コカ･コーライーストジャパン株式会社
Slide 21: The Coca-Cola System
CCEJ Q1 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 beverage
Slide 22: Glossary of Frequently Used Terms
CCEJ Q1 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 sales co
Slide 23: Thank You
THANK YOU Coca-Cola East Japan Q1 2016 Earnings Presentation May 16, 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