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Coke
1. Financial Results Presentation
for the year ended
December 31, 2007
February 8th, 2008
Coca-Cola West Holdings(2579)
Contact Corporate Planning Group IR Team
TEL 092-283-5724 FAX 092-283-5729
URL http://www.ccwh.co.jp/ E-mail shigeki-okamoto@ccwh.co.jp
2. Contents
Ⅰ.2007 Financial Results
Ⅱ.2008 Annual Business Plan
[Reference]
2007 4th quarter reference data
2007 full year reference data
Performance trend/Financial data
Group Management system/Coca-Cola system
in Japan
Explanation of terminology
1
3. Summery
1.Full year results
・Mid-term plan :Expansion of sales, infrastructure development and increase in
efficiency which harnessed management integration have proceeded steadily
・Finance :Achieve the target
・Sales :Exceed the previous year sales with profitability(+2.2%)
・Increase the sales in core/priority brands
・Improve the profitability in chain store/food service channel
・Market condition:In spite of increasing cost of raw material/crude, cost reduction is
realized due to the impact on functional strengthening which harnessed management
integration and cost reduction of CCNBC
2.2008 annual business plan
・Performance forecast:Operating income 17 billion yen(vs.last year +1.0 billion yen)
・Sales volume :+3.3% vs.last year
・Main initiatives :・Strengthen Georgia brand
・Development of the market (Urban area)
・Strengthen Chain store channel
・Market condition:The earnings projection increase slightly
2
5. 2007 main initiatives-expansion strategy
2007 main initiatives
Mid-term plan strategy
The cooperation system with TCCC/CCJC has
The cooperation system with TCCC/CCJC has
started
started
Ⅰ.Evolution to the new
Ⅰ.Evolution to the new ・Hold periodic top-management meeting
・Hold periodic top-management meeting
bottler by strategic
bottler by strategic ・The office of marketing teams is located at same flour
・The office of marketing teams is located at same flour
partnership
partnership ⇒Activation of Coca-Cola
⇒Activation of Coca-Cola
strengthening with
strengthening with
⇒Install Emblem café into vending machine
⇒Install Emblem café into vending machine
TCCC/CCJC
TCCC/CCJC
⇒Renewal of Café au lait
⇒Renewal of Café au lait
⇒Develop products for cup vending machine
⇒Develop products for cup vending machine
Marketing next generation model project and Vending
Marketing next generation model project and Vending
Ⅱ.Expansion of the sales
Ⅱ.Expansion of the sales
next generation model project have been established
next generation model project have been established
and the profit by the
and the profit by the
for future growth
for future growth
“consumer view”
“consumer view”
activity exceeding
activity exceeding
competitors
competitors Pick up the issues from customer satisfaction survey
Pick up the issues from customer satisfaction survey
4
6. Activation of Coca-Cola(1)
<Growth>
3 color strategy
20% 2006 2007
S
C/
10% +16.0%
0
,0 0
8
,33
2
+ Red
Black Silver
0%
-7.4%
-10%
<Sales volume by flavors(Jan-Dec)>
(thousand,%)
構成比(%) Target Sales Change
Red (Coca-Cola) age 16-24 12,059 +4.4
Silver (No calorie Coca-Cola) age 25+, female 2,367 -2.2 ※
Black (Coca-Cola Zero) 25+, male 2,513 -
Total Coca-Cola 16,973 +16.0
※comparison to “Diet Coca-Cola”
5
7. Activation of Coca-Cola(2)
<Sales volume by quarter(vs.last year)> (%)
25
+17.8
+24.7
20 No calorie Coca-Cola
Total Coca-Cola
+13.1
Launch 4/2
15
10
+3.4
5 +2.3 Coca-Cola Zero
Launch 6/4
0
4Q 2006 1Q 2007 2Q 3Q 4Q
<Initiative of new campaign “the Coke side of life” with CCJC>
President of CCJC, Sayre in Fukuoka 6
8. 2007 main initiatives - Efficiency/Capability base
main activities in 2007
Mid-term plan strategy
Coca-Cola West Logistics has started up
Coca-Cola West Logistics has started up
Merger of two production companies
Merger of two production companies
Capital/business alliance with Minami Kyushu CCBC
Capital/business alliance with Minami Kyushu CCBC
Ⅲ.Functional
Ⅲ.Functional
Stock transfer of Seiko Corporation, group company
Stock transfer of Seiko Corporation, group company
strengthening,
strengthening,
increase in Adjustment of the CCWG organization system
increase in Adjustment of the CCWG organization system
efficiency which
efficiency which ・Subsidiary companies of Coca-Cola business stopped
・Subsidiary companies of Coca-Cola business stopped
harnessed
harnessed having BOD.
having BOD.
management
management ・Integration of corporate officer system
・Integration of corporate officer system
integration
integration ・Revision of scope of authority
・Revision of scope of authority
Increase in efficiency of production/logistics
Increase in efficiency of production/logistics
Introduction of new line in CCW Daisen Products
Introduction of new line in CCW
Ⅳ.Strengthen a
Ⅳ.Strengthen a
Pick up the issues from customer satisfaction survey
capability base of Pick up the issues from customer satisfaction survey
capability base of
talented associates
talented associates Integration of education tools/program
Integration of education tools/program
and organizations
and organizations
7
9. CCWG Managing system
2006 July *Subsidiaries:24
2006 July *Subsidiaries:24 2008 February *Subsidiaries:20
2008 February *Subsidiaries:20
CCWJ
CCWJ <# of companies> 06 08 Nishinihon Beverage
CCWJ Area
CCWJ Area
Nishinihon Beverage
Nishinihon Beverage
Nishinihon Beverage
Coca-Cola business:17⇒14
Group
CC C CC C WW W JJ J
Group
CCWJ Vending
CCWJ Vending
CCWJ Vending
CCWJ Vending
Total :24⇒20
CCWJ Customer Service CCWJ Customer Service
CCWJ Customer Service CCWJ Customer Service
CCWJ Products
CCWJ Products
CCWJ Logistics Kansai Beverage Service
CCWJ Logistics Kansai Beverage Service
Kinki Area
Kinki Area
Group
Group
Nichibei
Nichibei
KK K ii i nn n kk k ii i
Nesco
Nesco
Takamasamune
Takamasamune
Kadiac
Kadiac
West Japan Service
West Japan Service
CCWH
CCWH Kansai Beverage Service
Kansai Beverage Service
Area Group
Area Group
Mikasa Beverage Service
Mikasa Beverage Service
Nesco
Mikasa
Mikasa
Nesco
MM M ii i kk k aa a ss s aa a
Kadiac
Kadiac
Mikasa Service
Kinki Coca-Cola Products Mikasa Service
Kinki Coca-Cola Products
KK K ii i nn n kk k ii i
Kansai Logistics
Kansai Logistics
Production Logistics
Production
Rex estate
Rex estate CCW Products(merge two entities)
CCW Products(merge two entities)
Seiko Corporate Japan Stock transfer
Seiko Corporate Japan
CCW Daisen Products
CCW Daisen Products
C&C
C&C
Akiyoshi
Akiyoshi
CCW Logistics(merge three entities)
CCW Logistics(merge three entities)
Mikasa Beverage Service
Mikasa Beverage Service
MM M ii i kk k aa a ss s aa a
Mikasa Service
Mikasa Service Other six subsidiaries (-1)
Other six subsidiaries (-1)
Mikasa Logistic
Mikasa Logistic
Capital/Business
Minami Kyushu CCBC
Minami Kyushu CCBC
Daisen Beverage alliance 8
Daisen Beverage
10. 2007 Highlight - Sales volume
(thousand case, %)
2006 2007
vs.plan
actual plan actual vs.last year
※ change % change %
182,207 186,845 186,237 -608 -0.3 +4,031 +2.2
※ The actual is the total of CCWJ, Kinki and Mikasa actual.
<Sales volume by quarter(vs.last year) > (%)
5
+3.3
+2.3
+1.7 +1.3
+1.3
0
-5
4Q 1Q 2Q 3Q 4Q
2006 2007
9
11. 2007 Highlight - Sales volume by brand
Review
Sales volume by brand
■Coca-Cole
(thousand case, %) ・Strengthen new campaign “the CSOL”
2007 ・Improve double digit by developing 3 color
vs.plan vs.last year strategy
actual
change % change % ・Bumper sales of Coca-Cola Zero
Coca-Cola 16,973 +829 +5.1 +2,338 +16.0
■Georgia
C
o Georgia 42,373 -884 -2.0 -292 -0.7 ・Sales of main flavors were down due to the
negative effect of renewal
r Soukenbicha 15,659 +215 +1.4 +947 +6.4
e
■Soukenbicha
Aquarius 19,417 -40 -0.2 +119 +0.6
・Sales have been up four consecutive quarters
Priority 13,791 +949 +7.4 +4,142 +42.9
due to the bumper sales of seasonable flavors
Complement 24,957 -1,619 -6.1 -3,459 -12.2
■Aquarius
Other 53,068 -58 -0.1 +235 +0.4 ・Exceed the previous year sales due to the
bumper sales of blue and launch of Vitamin
Total 186,237 -608 -0.3 +4,031 +2.2
Guard
※ The actual figure is the sum of CCWJ, Kinki and Mikasa.
<Priority> (vs.last year)
・Sprite :Strengthen by renewal(+104%)
*Priority brand : Sprite, Karada Meguricha, Mineral Water,
・Minute Maid:Get health-conscious customers(+42%)
Minute Maid
・Karadameguricha:Develop as non-sugar tea brand
*Complement brand : Hajime, Fanta, Qoo, Koucha Kaden,
Canada Dry, Hung Oolong Tea
(+37%)
・Water:Develop two brands(+37%)
10
12. 2007 Highlight - Georgia
<Sales volume by main flavor(full year)>
(thousand case, %)
構成比(%) Sales Change %
European 8,223 -655 -7.4
Emerald Mountain Blend 6,077 -298 -4.7
Emblem Black 4,737 170 +3.7
New products 5,618 570 +11.3
Total Georgia 42,373 -292 -0.7
<Growth by quarter(vs.last year)> (%)
+7.0
+3.4
5 +0.6
+1.3 Total Georgia
+1.0
-3.7
-1.0
-4.3
-10 -7.3 Emerald Mountain Blend
-7.9
(renewal:May, 2006)
-13.3
-22.8
-25
European
1Q 2Q 3Q 4Q
(renewal:July, 2006)
2007
11
13. 2007 Highlight – Value added products
Launch “Ayataka”, premium green tea, as a value added product
Sales of green tea category touched bottom in vending channel by launching “Ayataka”, and
it gained much more support than “Karadameguricha” in CVS.
<Sales of green tea category at Vending machine(vs.last year)>
120.0%
Launch “Ayataka”
110.0% (10/8)
Hajime+Ayataka
100.0%
90.0%
Hajime
80.0%
70.0%
7月 8月 9月 10月 11月 12月
<Sales volume at CVS(Nov-Dec)>
(cases)
61,610 49,630
Ayataka 425ml PET Karadameguricha 400ml PET 12
14. 2007 Highlight – Sales volume by channel
Review
Sale volume by channel
<Sales volume by area(vs.last year) > (%)
(thousand case, %)
2007
CCWJ Kinki Mikasa
vs.plan vs.last year
actual Vending -0.2 +0.9 +1.9
change % change %
Chain store +5.7 +9.8 +3.4
Vending 59,002 -670 -1.1 +244 +0.4
Chain store 39,369 +610 +1.6 +2,613 +7.1
■Vending
CVS 18,601 -397 -2.1 -231 -1.2
・Volume per machine improved at all areas
Retail 25,825 -2 -0.0 -834 -3.1
-Concentrate activities on core brands
Food service 18,371 +124 +0.7 +1,240 +7.2 which account for 60% on total sales in
vending(core brand sales improve 4.1%)
Other 25,070 -274 -1.1 +1,000 +4.2
-Expanding IT-machines
Total 186,237 -608 -0.3 +4,031 +2.2
■Chain store
※ The actual figure is the sum of CCWJ, Kinki and Mikasa.
・Emphasize the profitability
When the influence accompanying CCWJ/NNB enterprise -Expanding the sales of 500PET
adjustment(*) is removed,
products(+14.6% vs.last year)
CCWH Vending (vs.ly): +2.9%
-Maintain and expand the big bottles of
CCWJ Vending (vs.ly): +4.9%
*CCWJ/NNB enterprise adjustment :
core brand mainly
transferred CCWJ’s cup machines to NNB
transferred NNB’s Coca-Cola vending machines to CCWJ
(Sales volume of NNB is accounted in ‘Other’ section)
13
16. Chain store/Food service - Earnings
<vs.last year> CCWJ Kinki Mikasa
<Chain store - Gross profit(vs.last year) >
sales volume +5.7 +9.8 +3.4
market share -0.2 +0.5 +0.2
Attainment of growth
+15.2%
couple with interests
+12.2%
+6.7%
CCWJ Kinki Mikasa
<Food service - Gross profit(vs.last year)> <vs.last year> CCWJ Kinki Mikasa
sales volume +6.8 +7.8 +5.7
Attainment of growth
+8.2%
couple with interests
+7.8%
+4.7%
CCWJ Kinki Mikasa 15
17. 2007 Highlight - Consolidated P/L
(million yen, %)
2006 2007
actual vs.last year
plan actual vs.plan
※1 ※2 change % change %
Revenues 327,821 412,600 409,521 -3,079 -0.7 81,699 24.9
COGS 186,265 235,800 234,313 -1,487 -0.6 48,047 25.8
Gross profit 141,556 176,800 175,208 -1,592 -0.9 33,651 23.8
129,235 161,800 159,151 -2,649 -1.6 29,916 23.1
SG&A
Operating income 12,321 15,000 16,056 1,056 7.0 3,734 30.3
Impact on
Non-Operating
1,836 2,500 2,433 -66 -2.6 597 32.5 Minami Kyushu
income
CCBC: +523
Non-Operating
932 1,200 996 -203 -17.0 67 6.9
expenses
Recurring income 13,225 16,300 17,493 1,193 7.3 4,268 32.3
Extraodinary
1,569 700 671 -28 -4.1 -898 -57.2
income
Extraodinary losses 1,686 1,200 3,910 2,710 225.8 2,223 131.8
Income before
income taxes, 13,108 15,800 14,254 -1,545 -9.8 1,146 8.7
minority interests
Income taxes 5,627 6,386 4,866 -1,519 -23.8 -760 -13.5
Minority interests -89 14 12 -1 -9.9 101 -
7,570 9,400 9,375 -24 -0.3 1,804 23.8
Net income
※1: 2006 actual figure is the total of CCWJ、KINKI CCBC、MIKASA CCBC actual.
※2: The above plan is based on the performance forecast announced as of August 9, 2007.
<Ref. : In case of not reviewing of depreciation method> (million yen, %)
2007 Impact on review of
2006
Depreciation method:
actual vs.last year
actual +701
change %
Operating income 12,321 15,335 3,033 24.6
Recurring income 13,225 16,792 3,566 27.0 16
18. Full year Gross Profit Change Factors(vs.plan)
(billion yen)
176.8
2007 Gross profit plan
+0.5
Increase of sales volume
Increase by purchasing price
+0.8
of products
-2.6
Decrease by sale mix
-0.2
Decrease in profit from toll fee
Decrease from other group
-0.1
companies
175.2
2007 Gross profit actual
(million yen)
Revenues COGS Gross profit
CCWJ Sales(+423,000 cases) 858 463 395
Sales mix -1,760 -402 -1,358
subtotal -902 61 -963
Kinki Sales(+146,000 cases) 252 138 114
Sales mix -1,684 -727 -957
subtotal -1,432 -589 -843
Mikasa Sales(-67,000 cases) -117 -68 -49
Sales mix -316 -74 -242
subtotal -433 -142 -291
Increase by purchasing price of products -805 805
Decrease in profit from toll fee -257 -26 -231
Other -54 15 -69
Total -3,078 -1,486 -1,592
17
19. Full Year Operating Income Change Factors(vs.plan)
(billion yen)
15.0
2007 Operating income plan
-1.6
Decrease of gross profit
+1.2
Decrease of advertising cost
+0.4
Decrease of sales commission
+0.4
Decrease of service fee
Decrease of depreciation
+0.3
+0.3
Other cost
16.0
2007 Operating income actual
18
20. Full Year Gross Profit Change Factors(vs.last year)
(billion yen)
141.6
2006 Gross profit
+35.6
Increase for Kinki group sales
+2.4
Increase of sales volume
Decrease from purchasing price of
+0.7
products
-2.7
Change in account classification
・Impact on rising heavy oil/natural gas :-0.1 -1.2
Decrease by sales mix
Decrease in profit from toll fee -0.7
-0.5
Other group companies
175.2
2007 Gross profit
(million yen)
Revenues COGS Gross profit
Increase for Kinki group sales 80,601 45,029 35,572
CCWJ Sales(+1,334,000 cases) 2,713 1,471 1,242
Sales mix -1,093 -531 -562
subtotal 1,620 940 680
Kinki Sales(+1,360,000 cases) 2,362 1,302 1,060
(2nd half) Sales mix -1,565 -924 -641
subtotal 797 378 419
Mikasa Sales(+145,000 cases) 251 149 102
Sales mix -114 -129 15
subtotal 137 20 117
Purchasing price of products -705 705
Change in account classification -336 2,339 -2,675
Profit from toll fee -182 505 -687
Other group companies -938 -459 -479
19
Total 81,699 48,047 33,651
21. Full Year Operating Income Change Factors(vs.last year)
(billion yen)
12.3
2006 Operating income
Increase of gross profit +33.6
Change in account classification +2.7
Decrease of depreciation cost +1.0
Cost reduction which
Decrease of personnel cost +0.7
harnessed management
Decrease of sales integration +0.4
equipment cost
+0.4
Decrease of advertising cost
Impact on reviewing
+0.9
depreciation method
-34.4
Increase of Kinki group SG&A
Cost involved expansion of sales -0.4
Increase of sales commission
Increase of business
-0.3
Infrastructure development
system cost
・Fuel cost :-0.1
-0.9 ・Internal control cost :-0.2
Other
16.0
2007 Operating income
20
22. Ref. Full Year Results – Consolidated P/L
In case of adding ex-Kinki group’s actual
(million yen, %)
2006 2007
actual vs.last year
actual
※1 change %
Revenues 407,914 409,521 1,606 0.4
COGS 233,529 234,313 783 0.3
Gross profit 174,384 175,208 823 0.5
161,457 159,151 -2,305 -1.4
SG&A
Operating income 12,927 16,056 3,128 24.2
Non-Operating income 2,232 2,433 201 9.0
Non-Operating expenses 1,360 996 -364 -26.8
Recurring income 13,799 17,493 3,694 26.8
Extraodinary income 1,570 671 -899 -57.2
Extraodinary losses 3,624 3,910 286 7.9
Income before
income taxes, 11,745 14,254 2,509 21.4
minority interests
Income taxes 4,876 4,866 -9 -0.2
Minority interests 7 12 4 58.0
6,860 9,375 2,514 36.7
Net income
※1 The 2006 actual is adjusted based on a total of ex-CCWJ and
ex-Kinki CCBC, eliminating inter-company transaction.
<In case of not reviewing of depreciation method>
2006 2007
actual vs.last year
actual Impact on review of
※1 change % depreciation method:
+701 million yen
Operating income 12,927 15,355 2,427 18.8
Recurring income 13,799 16,792 2,993 21.7 21
23. Ref. Full Year Results – Gross Profit Change Factors
In case of adding ex-Kinki group’s actual
(billion yen)
174.4
2006 gross profit
Increase of sales volume +3.3
Decrease by purchasing
+0.7
price of products
-2.0
Decrease by sales mix
・Impact on rising heavy oil/natural gas price :-0.1
Decrease in profit from toll fee -0.6
-0.6
Other
175.2
2007 gross profit
(million yen)
Revenues COGS Gross profit
CCWJ Sales(+1,334,000 c/s) 2,713 1,471 1,242
Sales mix -1,093 -531 -562
subtotal 1,620 940 680
Kinki Sales(+2,550,000 c/s) 4,429 2,440 1,989
Sales mix -2,630 -1,190 -1,440
subtotal 1,799 1,250 549
Mikasa Sales(+145,000 c/s) 251 149 102
Sales mix -114 -129 15
subtotal 137 20 117
Decrease by purchasing price of products -705 705
Decrease in profit from toll fee -494 157 -651
Other -1,456 -879 -577
Total 1,606 783 823 22
24. Ref. Full Year Results – Operating Income Change Factors
In case of adding ex-Kinki group’s actual
(billion yen)
12.9
2006年 Operating income
+0.8
Increase of gross profit
+1.2
Decrease on depreciation cost
Cost reduction which
+1.1
Decrease of personnel cost harnessed management
integration
Impact on reviewing +0.8
depreciation method
+0.6
Decrease of advertising cost
Decrease of sales
+0.4
equipment cost
-1.0
Increase of sales commission Cost involved expansion of sales
Increase of business -0.3
Infrastructure development
system cost
・Fuel cost :-0.1
・Internal control cost :-0.2 -0.5
Other
16.0
2007 Operating income
23
25. Cost reduction related to CCNBC(compare to year of 2003)
*CCNBC : Coca-Cola National Beverage Co., ltd
(billion yen)
Cost reduction has been
realized in spite of bad
market condition(0.7 billion
yen compare to year 2007)
2.9
2.2
2.1
1.9
2007
2005
2004 2006
※The actual of 2004 and 2005 is ex- ※The actual of 2006 is ex-CCWJ
CCWJ’s actual. actual added ex-Kinki’s actual
24
26. 2007 Summery
・At the first year of mid-term plan, CCWH has started creating
the company which keeps growing
•Initiatives harnessed management integration have proceeded
steadily
・Financial results have improved steadily
-Increase sales volume with profitability
-In spite of bad market condition, cost reduction is realized
due to the impact on functional strengthening which
harnessed management integration
25
28. Sales volume plan/Performance forecast
<Sales volume plan> (thousand case, %)
2008 plan vs.last year
2007
actual 1st half 2nd half Total change %
CCWH area 186,237 89,222 103,228 192,450 6,213 +3.3
<Performance forecast>
(million yen, %)
2007 2008 plan
actual 1st half 2nd half Total change %
Revenues 409,521 199,700 225,300 425,000 15,478 3.8
Gross profit 175,208 85,500 96,300 181,800 6,591 3.8
Operating income 16,056 4,400 12,600 17,000 943 5.9
Recurring income 17,493 4,800 13,700 18,500 1,006 5.8
Net profit 9,375 2,100 8,000 10,100 724 7.7
27
29. Gross Profit Change Factors(vs.last year)
(billion yen)
175.2
2007 gross profit
+5.0
Increase of sales volume
+1.2
Increase by sales mix
・Impact on rising heavy
+0.4
Increase in profit from toll fee oil/natural gas price :-0.2
+0.2
Decrease of disposal fee
+0.6
Other
Increase by purchasing price
-0.8
of products
181.8
2008 gross profit
28
30. Operating Income Change Factors(vs.last year)
(billion yen)
16.0
2007 operating income
Increase of gross profit +6.6
Decrease of sales
+0.4
equipment cost
Cost reduction which
Improvement of trade harnessed management +0.4
condition
integration ・Sales commission:+0.2
+0.1
・Advertising cost :+0.2
Decrease of personnel cost
-2.1
Increase of sales commission
-2.0
Increase of advertising cost
Cost involved expansion of sales
-0.3
Increase of service fee
Decrease of supplies expense -0.2
Increase of business
-0.5
Infrastructure development
system cost
-0.1
Increase of fuel cost
-1.3 ・Accrued benefit cost:-0.3
Other
・Depreciation cost:-0.2
17.0
2008 operating income ・Educational cost:-0.1
29
31. Initiatives of sales expansion - Strategy
Five strategic theme
Recovery and increase sales volume of Georgia brand
Growth and efficiency in vending business
Improve VPM and number of units, especially vending machines
in indoor market ※VPM…Volume Per Machine
Strengthen carbonated drinks
Executing merchandising based on customer view
Break into unexplored channel
Expansion of sales and share
30
32. Initiatives of sales expansion - Change of organization/system
Visit bottlers integrated in Europe
・Coca-Cola Hellenic etc.
The company needs to look forward and review operating
organization/system drastically in order to have unbeaten operation power
and quality
⇒Marketing next generation model project Cooperate with consulting
company which has
⇒Vending next generation model project experienced many projects in
foreign bottlers
Transformation to more advanced strong operating
organization/system
31
33. 2008 Brand strategy - Sales Volume Plan by Brand
(thousand case, %)
2007 2,008
actual vs.last year
plan ratio
change %
Coca-Cola 16,973 18,008 +1,035 +6.1 9.4
Georgia 42,373 43,946 +1,573 +3.7 22.8
CC oo rr ee
Soukenbicha 15,659 16,105 +446 +2.8 8.4
Aquarius 19,417 20,522 +1,105 +5.7 10.7
Hajime/Ayataka 7,245 7,933 +688 +9.5 4.7
PP rr ii oo rr ii tt yy
Fanta 7,603 7,968 +365 +4.8 4.1
Mineral Water 8,328 8,603 +275 +3.3 4.5
Minute Maid 2,257 2,523 +267 +11.8 1.3
Other 66,383 66,842 +459 +0.7 34.7
Total 186,237 192,450 +6,213 +3.3 100.0
* Syrup and powder of each brand include in “Other”.
32
34. 2008 Brand Strategy - Core Brand
Basic
Basic
Position Brand Strategy/Directionality
Position Brand Strategy/Directionality
policy
policy
・Innovation of three color strategy
・Innovation of three color strategy
Restrengthen 「No calorie」
Restrengthen 「No calorie」
Coca-Cola
EE E xx x pp p aa a nn n ss s ii i oo o nn n oo o ff f ss s aa a ll l ee e ss s vv v oo o ll l uu u mm m ee e aa a nn n dd d ss s hh h aa a rr r ee e
Coca-Cola ・Utilize the Olympic games in Beijing
・Utilize the Olympic games in Beijing
・Strengthen the consumption at home
・Strengthen the consumption at home
・Get more core consumers by new campaign
・Get more core consumers by new campaign
・Utilize asset, 「Emerald Mountain」
Georgia ・Utilize asset, 「Emerald Mountain」
Georgia
・Renewal of all flavors
CC C oo o rr r ee e bb b rr r aa a nn n dd d
・Renewal of all flavors
・Strengthen 「Original flavor」 by utilizing new campaign
・Strengthen 「Original flavor」 by utilizing new campaign
Soukenbicha
Soukenbicha ・Utilizing seasonal flavors
・Utilizing seasonal flavors
・Renewal of Blue and utilizing the Olympic game in Beijing
・Renewal of Blue and utilizing the Olympic game in Beijing
・Get female users by launching new flavor
Aquarius ・Get female users by launching new flavor
Aquarius ・Make 「Vitamin Guard」 standard article
・Make 「Vitamin Guard」 standard article
33
35. 2008 Brand Strategy – Georgia(1)
2008 「Georgia」 New campaign
「Georgia, Surprisingly Good! 」
Starts on Feb 4th
34
36. 2008 Brand Strategy – Georgia(2)
New products 「Georgia」
「Emerald Mountain Blend Black」
「Emerald Mountain Blend Café Au Lait」
Launch on March 31th ※「Standard」 renewal:February,4th,2008
<Café Au Lait(no sugar)>
<Black(no sugar)> <Standard>
35
37. 2008 Brand Strategy – Georgia(3)
CCWH takes actions with CCJC
Develop 「“Climb the Mountain” project」
Target Get off to a flying due to the success of 1st quarter activities
Term Dec. 2007 to Apr. 2008
Strengthen new Emerald Mountain/European Blend(2/4~)
Main Development of national promotion(3/3~)
theme Development of new products
・Emerald Mountain Blend Black/Café Au Lait(3/31~)
Promote main theme with CCJC
Point Pick out a project leader in each branch, and execute this
project in all channel
36
39. 2008 Channel Strategy - Vending
Market development(in-market) ⇒Strengthen the urban area in Kinki
Strengthen operations in existing location⇒Effective use of IT-vending machine
Activation of cup vending machine ⇒Product development with CCJC
Area Main activities vs.last year
Market development, especially in-market ⇒ +1,900 units
CCWJ
+1,439,000
・Cooperation with Nishinihon Beverage(NNB), proposal of value
C/S
added vending machine and M&A
(+5.0%)
Market development with NNB toward high potential market
⇒+600,000 C/S(vs.last year+10%)
Effective use of IT-vending machine ⇒ 29.0%(vs.last year+5.5%)
Establish specialized team to develop big accounts in urban +1,173,000
Kinki
C/S
Input a number of sales force 32⇒52
(+4.6%)
Advance of M&A(cooperation with CCJC)
Strengthen the operational function +234,000
Mikasa
C/S
・The operational function in Mikasa Beverage transfer to Mikasa
CCBC (+5.0%)
38
40. 2008 Channel Strategy – Chain store
Increasing share at super market
Strengthen Osaka area where has high potential
Strengthen water and green tea which are growing category
Improvement of profitability by utilizing diversified package
Introduce new package
Area Main activities Vs.last year
Get more share by strengthening core category
CCWJ
+771,000C/S
・Core category target share : +2.0pt
(+4.2%)
(Cola, Sports, Fitness and non-sugar tea)
+1,300,000
Kinki Get more share in Osaka area
C/S
・Target share in Osaka area : +1.2pt
(+7.9%)
・Strengthen sales of Water and Green tea
Mikasa Increase profit by improving sales mix
+264,000C/S
・Increase the ratio of small-sized PET sales
(+6.0%)
Target : 22%
・Strengthen sales of 500ml PET
39
41. 2008 Channel Strategy – Chain store(Kinki)
<Initiatives for expanding market share in Osaka area> Data:Intage
Actual condition Factors Main initiatives Target
There are many
Share
Market share of accounts which Kinki
・Build up good relationship Target
can’t build up good
Chine store channel
with customers In Osaka
in Osaka is low relationship
Super
Market share of
market
・Increase lines
Supermarket categories which
CCWH 21.6%(vs.ly+0.2)
21.6%(vs.ly+0.2) 16.8%
have large scale of
Osaka 15.6%(vs.ly+0.1)
15.6%(vs.ly+0.1)
(+1.2pt)
sales is low
Drug store Water 5.9%
・Get more selling
CCWH 19.6%(vs.ly+1.1)
19.6%(vs.ly+1.1) (market ratio14.7%)
Drug
Green tea 4.5%
Osaka 18.7%(vs.ly+3.4)
18.7%(vs.ly+3.4)
19.0%
(market ratio 11.1%)
space (+0.3pt)
There are many
accounts which
strengthen sales of
private brand
40
42. 2008 Scenario for Achieving Sales Volume
Other (thousand case)
Other
CVS :+829(vs.last year+4.5%)
CVS :+829(vs.last year+4.5%)
Food service :+544(vs.ly +3.0%)
Food service :+544(vs.ly +3.0%)
Vending(vs.last year +4.8%)
Vending(vs.last year +4.8%)
Other :+697(vs.last year +2.8%)
Other :+697(vs.last year +2.8%)
Increase of installed VMs
Increase of installed VMs
: +1,290
: +1,290
Improvement of VPM : +1,556
Improvement of VPM : +1,556
+2,070
※VPM…Volume Per Machine
-1,037
+2,334
Sales volume
Retail(vs.last year-4.0%)
Retail(vs.last year-4.0%)
192,450
+2,846
Chain store(vs.last year +5.9%)
Chain store(vs.last year +5.9%)
CCWJ :+ 771(vs.ly +4.2%)
CCWJ :+ 771(vs.ly +4.2%)
Kinki :+1,300(vs.ly +7.9%)
Kinki :+1,300(vs.ly +7.9%)
Sales volume Mikasa :+ 264(vs.ly +6.0%)
Mikasa :+ 264(vs.ly +6.0%)
186,237
2007 actual 2008 plan
41
43. Initiatives for functional enhancement and efficiency
Functional strengthening, increase in efficiency which
harnessed management integration
1. Efficient operation with common platform
・Promotion of work restructuring by standardized business base
・Implementation of centralized procurement
・Consolidation of functional department
2. Increase in efficiency due to the group restructuring
・Coca-Cola West Products has started up since January
・Merger of maintenance companies
・Wind up other group companies
3. Reduction in business property
・Inventory, account receivable, etc
4. Initiatives for next generation
・Production next generation model project
・SCM next generation model project
42
44. 2008 Investment Plan(consolidated)
(million yen, %)
vs.last year
2007 2008
actual plan change %
I
Land -109 -100.0
109 0
n
Buildings 17.8
2,750 3,240 490
v
e
Machinery & Equipment -23.5
3,703 2,834 -869
s
t
Sales equipment 17.9
10,012 11,800 1,788
m
e Other -37.0
3,377 2,126 -1,251
n
Total 0.2
19,951 20,000 49
t
Depreciation -0.6
22,533 22,400 -133
<Breakdown of sales equipment>
CCWJ area Kinki area Mikasa area Total
Million yen 7,343 3,537 920 11,800
Units 16,200 8,500 2,000 26,700
43
45. 2008 Operating income achievement scenario
- Impact on CCNBC
Impact on
(billion yen) Cost reduction market condition
-0.8
Purchase price
+1.0
-0.3
- Fuel cost
-1.1
Fuel cost Infrastructure
-0.5
Sales growth
development
-0.2 (related to BS)
+1.6 Infrastructure
-0.3
development
Cost reduction
(related to BS)
+3.2
<Breakdown of cost reduction>
Sales equipment +0.4
17.0
Improvement of
Sales growth trade condition +0.4
+0.4 Disposal cost +0.2
16.0 Personnel cost +0.1
<Breakdown of cost reduction>
Other -0.1
Depreciation cost +1.2
12.9 Personnel cost +1.1
Impact on CCNBC
Purchasing price +0.7
Impact on review of
depreciation method +0.7
Procurement +0.2
2006 2007 2008
(include ex-Kinki) Disposal cost -0.2
Other -0.5 44
46. Introduction of the great merger movement
■Our stance against the great merger movement
・The company introduced this countermeasure for the purpose of enabling it
to make a suitable judgment by requesting reservation of sufficient information
service and a suitable evaluation period from a large-scale purchase person
etc.
Introduce the great merger movement in order to protect and
improve corporate value and shareholders profits
■Type of the great merger movement
・Prior warning right plan(The fixer side is non cooperative, and when you will
not respond to information service, the defense measure of a following level called
the issue of stocks of the right of new share reservation by allotment to
shareholders is put into execution)
■Introduction procedure
・Starting date : February 7, 2008
・Effective date : March 25, 2008
This is subject to approval of an annual shareholder meeting
45
47. Scheme of the great merger movement
Emergence of TOB person(more than 20% of stock certificate)
Against the rule
Comply with rule
The person submits the information about the act to the
board of directors(BOD)
BOD carries out evaluation, examination, etc At most 60 days in principle
Examination, advice by a corporate value committee At most 60 days in principle
Detract corporate
Contribute to corporate
Call a shareholder
value/shareholders profits
value/shareholders profits
meeting
↓
↓
Advice to exercise
Advice not to exercise
countermeasures
countermeasures
Shareholder meeting
Corporate resolution resolution
(maximum respect of the advice) (exercise countermeasures)
Reject
Adopt
Exercise countermeasures
Not exercise countermeasures
46
48. Vision/2008 target
Vision of mid-term plan(’07~’09) 2008年 Target
2008 target vs.ly
To the leading bottler in the world Sales volume 192 million C/S +3.3%
To the leading bottler in the world
Growth exceeding competition Net revenues(billion yen) 425.0 +3.8%
Growth exceeding competition
overwhelmingly
overwhelmingly
Operating income 17.0 +5.9%
Establishment of aasteadfast profit base
Establishment of steadfast profit base
Operating income margin 4.0% +0.1pt
ROA 6.0% +0.4pt
Change to the “Customer View”
(recurring income on total assets)
ROE 4.0% +0.3pt
The strong confidential relation (net income on equity capital)
between employee and company EP(economic profit) 2.5 billion yen +0.5by
FCF(free cash flow) 7.0 billion yen +3.4by
*EP : Real earnings(company earnings after deducting the cost of capital used to create profit) calculated after
deducting capital costs from operating income after taxes(capital cost is 4.2%)
47
49. Share buy-back scheme
Based on article 156 of corporation law, the company passed a resolution to buy back the company share
Purpose : Improvement of capital efficiency
To make flexibly capital policy corresponding change of business environment possible
Acquisition number of shares : 1.5 million shares(upper limit)
*1.41% in proportion to number of shares issued(excluding company shares)
Total acquisition price : 4 billion yen(upper limit)
Term : February 8, 2008 to March 24, 2008
<ROE and ROA in case of acquiring 1.5 million shares>
2008 plan
Item 2007 actual 2008 plan
(after acquisition)
ROE 3.72% 3.99% 4.02%
ROA 5.64% 5.97% 6.01%
<Ref. Share condition at December 31, 2007>
・Number of shares issued(excluding company shares) : 106,177,844
・Number of company shares : 4,947,870
48