Financial Results Presentation for the year ended December 31, 2006 February 14

Financial Results Presentation
for the year ended
December 31, 2006
February 14th, 2007
Coca-Cola West Holdings（2579）
Contact
TEL 81-(0)92-283-5718
URL http://www.ccwh.co.jp/
PR・IR Group
FAX +81-(0)92-283-5729
E-mail [email protected]
Contents
I. 2006 Financial Results
1．4Q highlight
2．Full year highlight
II. 2007 Annual Business Plan
1．2007-2009 three year business plan
2．2007 market outlook and sales volume plan
3．2007 financial plan
[Reference]
・Market share (OTC channel)
・By brand sales volume / revenues / GP composition
・By channel sales volume / revenues / GP composition
・Group company overview
・Financial data
・Group structure
・Group company profile
・Coca-Cola system in Japan
・Explanation of terminology
4．2007 annual business plan
5．2007 sales volume achieving scenario
6．2007 channel strategy
7．2007 brand strategy
8．2007 capital investment plan
1
I. 2006 Financial Results
2
4Q Highlight (Oct-Dec)– Sales Volume
¾Sales Volume ： vs. Plan –2.8%, vs. LY +1.3%
2005 4Q
Actual
※1
43,499
Sales Volume
Plan
※2
45,351
Actual
44,061
（thousand cases ）
2006 4Q
vs. Plan
Change % change
-1290
vs. LY
Change % change
-2.8
562
+1.3
※1 : 2005 4Q Actual figure is the total of CCWJ、Kinki CCBC、Mikasa CCBC 2005 actual.
※2 : The above plan is based on the performance forecast announced as of Aug. 8, 2006.
＜Sales Volume by quarter （vs. Last Year)＞
5
1.3
0
-0.7
-4.6
-4.0
-5
(%)
1Q
2Q
3Q
4Q
※ Sales volumes of 1Q and 2Q are the sum of CCWJ、Kinki CCBC and Mikasa CCBC actuals.
3
4Q Highlight (Oct-Dec) – Brand Strategy
4Q Activity Points
¾Recapturing and strengthening
key brands
■Coca-Cola
Actual Sales Volume By Brand
Coca-Cola : Sales of Diet Coca-Cola expand,
exceeded the last year
Soukenbicha : Keep good condition, 500PET fit
bottle is especially good.
⇒Continued expansion of Diet Coke
⇒Expanding sales by creating a Christmas theme at
the outlets.
Aquarius : Blue and freestyle keep good condition
■Georgia
Karada Meguricha : Good sales are maintained
⇒Recapturing and strengthening during peak
Fanta : Sales rose by launch of seasonal flavors(+24.8%)
seasons
Hajime : Sales fell
Morino Mizu : Sales rose from expansion of market
■Aquarius
⇒Continued expansion of favorable sales by
introducing a sub flavor, “Vitamin Guard”
⇒Implementation in testing hot drinks
■Non-Sugar Tea
⇒Continued coverage of “Karada Meguricha” as well
as implementing new promotions
⇒Implementation of hot drinks
(thousand cases)
Coke
Georgia
Actual
2006 4Q
vs. Plan
Change
% ch
vs. LY
Change
% ch
3,202
-135
- 4.0
+71
+2.3
11,560
-1,068
- 8.5
-345
- 2.9
Sokenbicha
Aquarius
3,322
+111
+3.4
+389
+13.3
3,271
-376
- 10.3
+218
+7.1
Hajime
Morino Mizu
1,943
-419
- 17.7
-280
- 12.6
1,504
+112
+8.0
+211
+16.3
19,259
+485
+2.6
+298
+1.6
44,061
-1,290
- 2.8
+562
+1.3
Others
Total
4
4Q Highlight (Oct-Dec) – Georgia
¾ The flagship products which occupy about 60% of Georgia sales expanded steadily after renewal.
¾ On the other hand, new products suffered downturn compared with the previous year.
< 4Q Sales volume by flavor (% change vs. 2005) >
% Change
Tasty
+19.7
Emblem black
+16.1
European
+14.0
Emerald Mountain blend
+6.9
New products
-19.9
Georgia total
-2.9
< Sales volume of flagship products (% change vs. 2005)
20
15
10
5
0
-5
-10
-15
-20
(%)
+19.7
+14.0
+9.5
7/10 renewal
+4.4
-2.5
-14.0
1Q
2Q
5/8 renewal
+16.1
+14.0
+6.9
-0.1
-1.0
-6.2
-15.1
-0.6
-17.1
-18.8
10/2 renewal
3Q
8/28 renewal
Tasty
Emblem
European
Emerald
4Q
5
4Q Highlight (Oct-Dec) – Channel Strategy
4Q Activity Points
■Vending
Actual Sales Volume By Channel
Vending : Georgia which occupies many of vending
machine columns suffered downturn,
⇒Optimizing the vending machine column
…Smooth transition from autumn to winter
products
…Deploying hot products by location
⇒Increasing the number of vending machines
…Strengthen development of vending
location limit withdrawal
⇒Continued implementation in testing chilled
products
■Supermarket
⇒Maximizing CSD sales in the winter through
winter CSD Large PET promotions
⇒Sales recovery of mineral water
⇒Continued strengthening of category
management
■On-Premise
⇒Investigating in capturing the market through
establishing a new business model.
but sales volume of vending channel
was flat because sales of other brands
expanded.
Chain store : Expanded sales volume by execution
of channel strategies
CVS/Food service : Exceeded the last year
（thousand cases）
Vending
Actual
2006 4Q
vs. plan
Change
% ch
vs. last year
Change
% ch
14,145
-894
-5.9
-20
-0.1
Chain Store
8,068
-217
-2.6
+428
+5.6
CVS
4,734
-165
-3.4
+206
+4.6
Retail
6,326
-215
-3.3
-350
-5.2
Food Service
4,750
-84
-1.7
+132
+2.9
404
+6
+1.6
-14
-3.3
5,634
+280
+5.2
+179
+3.3
44,061
-1,290
-2.8
+562
+1.3
Distributor
Others
Total
6
4Q Highlight (Oct-Dec) – Consolidated P&L
¾Revenue: vs. Plan 3,568 MM JPY decline（‐3.5%）、vs. LY 41,073 MM JPY increase（＋70.1%）
¾Operating Income: vs. Plan 113 MM JPY increase（‐3.1%）、vs. LY 1,689 MM JPY increase（＋94.1%)
（million yen）
2005 4Q
Actuals ※1
Revenues
Operating Income
Recurring Income
Net Income
58,557
1,796
1,999
2,168
Plan
Actual
※2
103,200
3,600
3,900
2,200
99,631
3,486
3,851
2,385
2006 4Q
vs. Plan
Change
% ch
-3,568
-113
-48
185
-3.5
-3.1
-1.2
8.4
vs. LY
Change
% ch
41,073
1,689
1,581
216
70.1
94.1
92.6
10.0
※1 : 2005 4Q Actual figure is the total of CCWJ、Kinki CCBC、Mikasa CCBC 2005 actual.
※2 : The above plan is based on the performance forecast announced as of Aug. 8, 2006.
■ Reference ：In the case of adding ex-KINKI group’s actual
（million yen）
2005 4Q
Actual ※
Revenues
Operating Income
Recurring Income
Net Income
100,900
2,700
2,800
2,800
Actual
99,631
3,486
3,851
2,385
2006 4Q
vs. LY
Change
% ch
-1,268
-1.3
786
29.1
1,051
37.6
414
-14.8
※The above 2005 4Q Actual is adjusted based on a total of ex-CCWJ and ex- Kinki CCBC,
eliminating inter-company transaction.
7
4Q Consolidated Profit Changes Factors (vs.Plan)
＜Gross Profit＞
(100 million yen)
2006 4Q Gross profit plan
444
Impact from sales companies (*)
Sales volume decrease
Impact from sales companies (*)
Decrease by sales mix
Vs. plan : -1,300 million yen
-11
* Main factors for profit decrease
Impact from sales companies(*)
-4
Increase of
others
Sales volume decrease
- 1,100 million yen
+2
Sales mix - 400 million yen
431
2006 4Q Gross profit actual
* Sales companise are CCWJ, KINKI CCBC, and MIKASA CCBC.
400
＜Operating Income＞
(100 million yen)
2006 4Q Operating income plan
36
Decrease of gross profit
Increase in personnel cost
-9
Decrease in advertising cost
Decrease in sales commission
Decrease of depreciation cost
Decrease of others
2006 4Q Operating income actual
35
0
10
20
Vs. plan : -100 million yen
* Main factors for decrease
Decrease of gross profit
-13
-1,300 million yen
Increase of personnel cost
-900 million yen
+10
* Main factors for increase
Decrease of advertising cost
+5
-1 billion yen
+3
Decrease of sales commission
500 million yen
+3
Decrease of depreciation cost
300 million yen
30
40
8
4Q Consolidated Profit Changes Factors (vs.LY)
＜Gross Profit＞
(100 million yen)
255
2005 4Q Gross profit
+192
Increase for the Kinki group sales
Increase of sales volume
+3
-12
Change in account classification
Decrease by sales mix
-4
Other
-3
2006 4Q Gross profit
431
Vs. last year : +17,600 million yen
* Main factors for increase
Increase of Kinki group
19,200 million yen
Increase of sales volume
300 million yen
* Main factors for decrease
Change in account classification
- 1,200 million yen
Sales mix
- 400 million yen
200
＜Operating Income＞
(100 million yen)
18
2005 4Q Operating income
+176
Increase of gross profit
+12
Change in account classification
+2
Decrease of advertising cost
+2
Decrease of rental expense
+2
Other
-174
Increase of Kinki group SG&A
-3
Increase in personnel cost
35
2006 4Q Operating income
0
Vs. last year : +1,700 million yen
* Main factors for increase
Increase of gross profit
17,600 million yen
Change in account classification
1,200 million yen
Decrease in advertising cost
200 million yen
Decrease of rental expense
200 million yen
* Main factors for decrease
Kinki group SG&A
-17,400 million yen
Increase in personnel cost
-300 million yen
9
Full Year Highlight - Consolidated P&L
¾Revenue: vs. Plan 5,578 MM JPY decline（‐1.7%）、vs. LY 81,946 MM JPY increase（＋33.3%）
¾Operating Income: vs. Plan 78 MM JPY decline（ ‐0.6%）、vs. LY 490 MM JPY increase（＋4.1%)
（million yen）
2005
Actuals ※1
Revenues
Operating Income
Recurring Income
Net Income
245,874
11,830
12,256
7,305
Plan
※2
333,400
12,400
13,330
7,400
Actual
327,821
12,321
13,225
7,570
2006
vs. Plan
Change
% ch
-5,578
-1.7
-78
-0.6
-74
-0.6
170
2.3
vs. LY
Change
% ch
81,946
33.3
490
4.1
969
7.9
264
3.6
※1 : 2005 Actual figure is the total of CCWJ、KINKI CCBC、MIKASA CCBC 2005 actual.
※2 : The above plan is based on the performance forecast announced as of Aug. 8, 2006.
■ Reference ：In the case of adding ex-KINKI group’s actual
（million yen）
2005
Actuals ※1
Revenues
Operating Income
Recurring Income
Net Income
417,444
17,812
18,065
10,554
2006
Actual
408,240
13,071
14,005
6,955
vs. LY
Change
-9,203
-4,740
-4,059
-3,598
% ch
-2.2
-26.6
-22.5
-34.1
※2005 4Q Actual is adjusted based on a total of ex-CCWJ and ex- KINKI CCBC,
eliminating inter-company transaction.
10
2006 Consolidated Profit Changes Factors (vs.Plan)
＜Gross Profit＞
(100 million yen)
1,447
2006 gross profit plan
＊Major factors for decrease
Impact from sales Company(※）
Sales volume decrease
-22
Impact from Sales Company(※)
Decrease by sales mix
-10
Decrease by other group companies
Other increase
-1
・Impact from Sales Company(※）
Sales Volume decrease
2,200 million yen
Sales Mix -1,000 million yen
+1
・Decrease from other -100 million
group companies yen
1,415
2006 gross profit actual
Vs. plan : -3,200 million yen
1300
※Sales companies are ＣＣＷＪ、KINKI CCBC, and MIKASA CCBC
Vs. plan : -1,000 million yen
＜Operating Income＞
(100 million yen)
・Decrease of Gross Profit
-3,200 million yen
124
2006 operating income plan
△32
Decrease of gross profit
Increase in personnel cost
・Increase in personnel cost
-1,000 million yen
△10
Decrease in advertising cost
＊Major factors for increase
+16
Decrease in sales commission
・Decrease in advertising cost
1,600 million yen
+8
+5
Decrease in depreciation cost
+3
Decrease of rental expense
Decrease in service fee
+2
Decrease in other cost
+7
2006 operating income actual
123
60
＊Major factors for decrease
・Decrease in sales commission
800 million yen
・Decrease in depreciation cost
500 million yen
・Decrease of rental expense
300 million yen
・Decrease in service fee
200 million yen
11
2006 Consolidated Profit Changes Factors (vs.LY)
＜Gross Profit＞
(100 million yen)
1,075
2005 gross profit
+407
△25
△19
Net increase of KINKI Group(2H)
Decrease of sales volume
Change in accounting classification
△9
Decrease by sales mix
△6
△2
Decrease by other group companies
Decrease in sales of inventory to
CCNBC
Other decrease
＊Major factors for increase
・Net increase from KINKI Group
40,700 million yen
＊ Major factors for decrease
・Decrease of sales volume
‐2,500 million yen
・Change in account classification
-1,900 million yen
△6
・Decrease by sales mix
‐900 million yen
1,415
2006 gross profit
Vs. last year : +34,000 million yen
1000
＜Operating Income＞
Vs. last year : +500 million yen
(100 million yen)
118
2005 operating income
Increase in gross profit
Increase from change in accounting
classification
Decrease of rental expense
Decrease of advertising cost
・Increase in Gross Profit
34,000 million yen
+340
+19
+5
+4
+2
+3
△365
Decrease in personnel cost
Decrease of other cost
Decrease of KINKI Group SG&A(2H)
△3
Increase of depreciation cost
2006 operating income
123
50
＊Major factors for increase
・Change in account classification
1,900 million yen
・Decrease of rental expense
500 million yen
・Decrease in advertising cost
400 million yen
＊Major factors for profit decrease　・Kinki Group SG&A cost
‐36,500 million yen
12
Summery (2006 2H)
1. Joint strategies with TCCC/CCJC
a)Start of a new stage, recognized as being largest bottle in Japan as well as being one of top
ranked from a global perspective.
・Management meetings, Management forums
・Collaboration marketing ⇒ this is the first time for bottlers to participate in marketing directly
・Collaboration office in Fukuoka and Osaka, etc.
・Cooperation strengthening (CCIBS, CCNBC, CCCMC, CCVPS, etc.) with a national
functional integrated company
- Main information system construction used as the model of - Coca Cola system
- Being a pilot bottler for standard of purchase process and a vending machine
installation process etc.
2. Strengthening of Enterprise Base in CCW Group
a)Make "DAISEN Beverage Company" which was joint company with other bottlers to subsidiary.
It Changes into a "Coca Cola West DAISEN Products Company".
=> Strengthening Mineral-Water Business
b)Capital Reduction of - KINKI CCBC, MIKASA CCBC, and a KANSAI Beverage Service
Company
c)Three distribution companies unify.
d)SCM (territory crossing delivery, area collaboration supply and demand) beyond the bottler
territory concept
e)Effective use of cash (Cash Management System)
13
II. 2007 Annual Business Plan
14
2007-2009 Three Year Business Plan
Vision
To the leading bottler in the world
・Growth exceeding competition overwhelmingly
・Establishment of a steadfast profit base
Change to the ｢Consumer View｣
The strong confidential relation
of employee and company
Target (2009)
Sales Volume
Net Revenue(a)
Operating Income(b)
Ratio (b/a)
ROA
ROE
EP
FCF
：200 million c/s
：44 0billion yen
：25 billion yen
：no less than 5％
：no less than 8％
：no less than 5％
：4 billion yen more
：12 billion yen more
Strategy
Evolution
Evolution to
to the
the new
new bottler
bottler by
by
strategic
strategic partnership
partnership strengthening
strengthening
with
with TCCC/CCJC
TCCC/CCJC
Expansion
Expansion of
of the
the sales
sales and
and the
the
profit
profit by
by the
the "Consumer
"Consumer View"
View"
activity
activity exceeding
exceeding competitors
competitors
Functional
Functional strengthening,
strengthening, increase
increase
in
in efficiency
efficiency which
which harnessed
harnessed
management
management integration
integration
Strengthen
Strengthen aa capability
capability base
base of
of
talented
talented associates
associates and
and
organizations
organizations
15
2007 Market Scale Prediction & Sales Volume Plan
＜Market Scale Prediction(CCWH area)＞
Market
Growth （vs.06）
Take-Out Market
（Super market, CVS,
Drug store,Retail store）
Eat-In Market
（Food service）
Outdoor Vending
Machine Market
※CCWH survey
Factors
+3.6%
9Positive factors : Inflow from vending machine, Increase of home meal,
Increase in valuable soft-drink ratio, Extension of business hours
-1.7%
9Positive factor : Café is well-established in market
9Negative factors : Saving dining out expense, Increase of home-meal
-3.6%
9Positive factor : The empty space of alcohol or tobacco vending machines,
Cognition as a social infrastructure of vending machines
9Negative factors : Outflow for takeout (CVS, SM), Outflow for coffee shop
Indoor Vending
Machine Market
+0.9%
Total
+1.8%
9Positive factors : Recovery of business (increase in overtime),
Enlargement of business　place, Increase in leisure time
9Negative factors : Outflow for takeout (CVS, SM), Reduction in
labor force
(000 C/S)
＜Sales Volume Plan＞
CCWH
2006
Actual ※
183,663
1H
87,478
（thousand cases ）
2007 Plan
2H
Total
100,852
188,330
Change
4,667
% ch
+2.5
※ 2006 Actual figure is the total of CCWJ、KINKI CCBC、MIKASA CCBC 2006 actual.
16
2007 Financial Plan (Consolidated)
＜Consolidated P/L＞
(million yen)
Revenue
Operating Income
Recuring Income
Net Income
2006
Actual
327,821
12,321
13,225
7,570
1H
195,500
4,300
4,700
2,700
2H
220,200
10,200
10,600
6,200
2007 Plan
Total
415,700
14,500
15,300
8,900
Change
87,878
2,178
2,074
1,329
% ch
26.8
17.7
15.7
17.6
※ 2006 Actual is CCWH consolidated P/L.
(ex-CCWJ consolidated P/L(1H)+CCWH consolidated P/L(2H))
17
Reasons for Changes in Profit (vs. 2006)
＜Gross Profit＞
(100 million yen)
2006 gross profit
1,415
+371
Net increase of KINKI Group(2H)
+22
-6
Increase of sales volume
Change in accounting classification
-2
Decrease by sales mix
2007 gross profit
＜Operating Income＞
1,800
Vs. last year : +38,500 million yen
* Main factors for increase
Net increase of Kinki group(2H)
37,100 million yen
Increase of sales volume
2,200 million yen
* Main factors for decrease
Change in account classification
- 600 million yen
sales mix - 200 million yen
1350
(100 million yen)
123
2006 operating income
Vs. last year : +2,200 million yen
Increase in gross profit
+385
Change in accounting classification
+6
＊Major factors for increase
+5
Decrease of vending machine cost
+2
Decrease in personnel cost
+4
Decrease in other cost
-356
Decrease of KINKI Group SG&A(2H)
-10
Increase in sales commissions
-10
Increase in advertising cost
-4
Increase of depreciation cost
145
2007 operating income
50
・Increase in Gross Profit
38,500 million yen
・Change in account classification
600 million yen
・Decrease of vending machine cost
500 million yen
・Decrease in personnel cost
200 million yen
＊Major factors for decrease　・Kinki Group SG&A cost
‐35,600 million yen
・Increase in sales commission cost
‐1,000 million yen
18
Ref : 2007 Financial Plan (Consolidated)
In case of adding 2006 ex-KINKI group’ actual
＜Consolidated P/L＞
(million yen)
Revenue
Operating Income
Recuring Income
Net Income
2006
Actual
408,240
13,071
14,005
6,955
Total
415,700
14,500
15,300
8,900
2007 Plan
Change
7,460
1,429
1,295
1,945
% ch
1.8
10.9
9.2
28.0
※2006 Actual is adjusted based on a total of ex-CCWJ and ex- KINKI CCBC,
eliminating inter-company transaction.
19
Ref : 2007 Financial Plan (Reasons for changes in profit)
In case of adding 2006 ex-KINKI group’ actual
＜Gross Profit＞
1,783
2006 gross profit
Increase of
sales volume
and sales mix
(100 million yen)
+14
KINKI area
+7
CCWJ area
+2
MIKASA area
Change in account classification
-6
1,800
2007 gross profit
1700
<Operating profit>
(100 million yen)
131
2006 Operating income
Increase of gross profit
+17
Decrease in personnel cost
+7
Decrease of vending machine cost
600 million yen
-14
Increase in sales commission
Increase of advertising
cost
-5
-2
Increase of depreciation cost
-1
Other cost
145
2006 operating income
80
* Main factors for increase
Decrease in personnel cost
700 million yen
+6
Change in account classification
Vs. last year : +1,400 million yen
Increase of gross profit
1,700 million yen
+6
Decrease of vending machine cost
Vs. last year : +1,700 million yen
* Main factors for increase
Increase of sales volume and
sales mix
KINKI area: 1,400 million yen
CCWJ area:
700 million yen
MIKASA area: 200 million yen
* Main factors for decrease
Change in account classification
- 600 million yen
Change in account classification
600 million yen
*Main factors for decrease
Increase of sales commission
- 1,400 million yen
Increase in advertising cost
- 500 million yen
Increase of depreciation cost
- 200 million yen
20
2007 Annual Business Plan
2007-2009 Strategy
2007 Annual Business Plan
Evolution
Evolution to
to the
the new
new bottler
bottler by
by
strategic
strategic partnership
partnership strengthening
strengthening
with
with TCCC/CCJC
TCCC/CCJC
1.
1. Create
Create aa new
new strategic
strategic partnership
partnership
2.
2. Activation
Activation of
of existing
existing Channel
Channel // Brand
Brand // Goods
Goods
3.
3. Enter
Enter aa new
new domain
domain (goods
(goods // market)
market)
Expansion
Expansion of
of the
the sales
sales and
and the
the
profit
profit by
by the
the "Consumer
"Consumer View"
View"
activity
activity exceeding
exceeding competitors
competitors
1.
1. Create
Create aa structure
structure that
that picks
picks up
up consumers’
consumers’ voice
voice
2.
2. Strengthen
Strengthen vending
vending business
business
3.
3. Strengthen
Strengthen customer
customer management
management
Functional
Functional strengthening,
strengthening, increase
increase
in
in efficiency
efficiency which
which harnessed
harnessed
management
management integration
integration
1.
1. Integration
Integration and
and maintenance
maintenance of
of management
management
organization
organization
2.
2. Promote
Promote common
common platform
platform
3.
3. Increase
Increase in
in efficiency
efficiency and
and productivity
productivity
Strengthen
Strengthen aa capability
capability base
base of
of
talented
talented associates
associates and
and
organizations
organizations
1.
1. Create
Create aa value
value standard
standard of
of personnel
personnel management
management
and
maintain
a
personnel
system
and maintain a personnel system
2.
2. Career
Career development
development of
of employee,
employee, human
human resources
resources
development
which
supports
motivation
and
development which supports motivation and manmanpower
Development
power Development
3.
3. Arrange
Arrange aa basis
basis of
of person
person and
and organization
organization
management
management
21
Ⅰ. Evolution to the new bottler by strategic partnership strengthening with TCCC/CCJC
1. Create a new strategic partnership
(1) Management Meeting (once / two months)
(2) Marketing Forum (once / two months)
(3) Strengthening with functional integrated company (create new system,
model etc.)
(4) Collaboration Office (Fukuoka, Osaka)
2. Activation of existing Channel / Brand / Goods
(1) Activation of core brand, and plan of sales promotion (Coca Cola,
Georgia)
(2) Expand share in OTC market by activation of sugarless tea and water
(3) Strengthening CVM by activation of syrup / powder / coffee
3. Enter a new domain (goods / market)
(1) Application of tests in chilled products (KINKI Area: 400 VMs)
Create a business
model which is
increasing profits in
proportion to sales /
share expansion
By collaboration
marketing, we
realize “consumer
view" marketing
more than what we
have done so far
(2) Support CCJC in R&D of health drink, and strengthening merchandising
(3) New product verification and evaluation in On-Premise (*) Market
* On-Premise : Cooking catering trade
22
Ⅱ. Expansion of the sales and the profit by the "Consumer View" activity exceeding competitors
2.
2. Strengthen
Strengthen vending
vending business
business
(1)
Optimization
of
organization
(1) Optimization of organization related
related to
to R&D
R&D and
and
vending
vending operation
operation (Reconstruction
(Reconstruction of
of vending
vending business)
business)
(2)
(2) Strengthen
Strengthen base
base and
and function
function of
of vending
vending business
business
(integration
of
corporation
window
and
promotion
(integration of corporation window and promotion of
of IT
IT
vending
vending machine
machine etc.)
etc.)
(3)M&A
(3)M&A // Examine
Examine business
business tie-up
tie-up
The
The value
value
exceeding
exceeding the
the
other
company
other company
is
is offered
offered
3.
3. Strengthen
Strengthen customer
customer management
management
(1)
(1) Expansion
Expansion of
of operating
operating support
support function
function for
for sales
sales force
force
(IT
(IT Infrastructure
Infrastructure Development)
Development)
(2)
Create
new
relationship
(2) Create new relationship collaboration
collaboration with
with customer
customer
(ECR*
(ECR* etc.)
etc.)
(3)
(3) Create
Create structure
structure of
of chain
chain store
store business
business based
based on
on
customer
customer
Expansion of
of sales
sales and
and aa profit
profit
Expansion
1.
1. Create
Create aa structure
structure that
that picks
picks up
up consumers’
consumers’ voice
voice
(1)
(1) Practical
Practical use
use of
of the
the integrated
integrated information
information based
based on
on the
the
consumer’s
consumer’s voice
voice
(2)
(2) Create
Create the
the structure
structure which
which makes
makes the
the integrated
integrated
information
information reflect
reflect in
in management
management
(3)
(3) Monitoring
Monitoring operating
operating process
process from
from manufacture
manufacture to
to store
store
* ECR : Efficient Consumer Response -- Measure which increase the efficiency of the whole circulation system. Makers,
wholesales, and retail stores cooperate for the purpose of the correspondence to a consumer's needs.
23
Ⅲ. Functional strengthening, increase in efficiency which harnessed management integration
1. Integration and Maintenance of Management Organization
(1) New group management (by area and function), and flexibility of business management
(2) Re-design of manufacture function which was able to take CCNBC next generation model and
Adjustment
(3) Re-design of vending business function at the point of consumer view
2. Promote common platform
(1) Construction of the common platform of indirect department
(2) Reconstruction of a standard operating process
(3) Communalization of direct operating platform
(branch office work, an operating plan, SCN)
3. Increase in Efficiency and Productivity
(1) Increase in Efficiency of distribution network and reduction of goods
abandonment
(2) Central purchasing (joint supply promotion of vending machine,
operating fixtures, etc.)
(3) Rising productivity by efficiency of operation
(4) Concentration, integration and advancement of IT infrastructure
(5) Establishment of performance management structure
"Establishment of competitive superiority" by functional enhancement and
increase in efficiency
24
Ⅳ. Strengthen a capability base of talented associates and organizations
1.Create a value standard of personnel
management and maintain a
personnel system
(1) Decision of a group talented-people
management concept
(2) Maintenance of Management-byObjective system and introduction of
evaluation system in consumer view
(3) Promotion of Positive Action and
Work Life Balance
2. Career development of employee,
human resources development
which supports motivation and manpower Development
(1) Decision of personnel training plan
and career development plan
(2) Unification of personnel training
organization as CCW group
(3) Unification and maintenance of
training, correspondence course, etc.
3. Arrange a basis of person and
organization management
(1) Creation of talented-people
database
(2) Creation of adoption concept and
implementation of basic training
¾Improve the environment where an employee can concentrate for work with employee satisfaction.
¾“Draw an employee’s motivation” “Rise employee satisfaction" “Support an employee’s life".
“Company and Employee" are connected with a strong confidential relation,
and then we create the base which all employees can concentrate for work
at consumer view point.
25
2007 Sales Volume Achieving Scenario
„Vending
„Vending (+2.2%
(+2.2% vs.
vs. ly)
ly)
—Expansion
—Expansion of
of VM
VM :: +2,178
+2,178
—Raise
:: +1,785
—Raise VPM
VPM
+1,785
—Retired
—Retired of
of VM
VM :: -1,382
-1,382
—CVM
—CVM change
change :: -1,300
-1,300
(CCWJ=>NNB)
(CCWJ=>NNB)
„CVS
„CVS (+3.5%
(+3.5% vs.
vs. ly)
ly)
—New
—New product
product
—Collaboration
—Collaboration merchandising
merchandising
with
CCCMC
with CCCMC
(thousand cases)
„Collaboration
„Collaboration marketing
marketing
—New
—New domain
domain
-- New
New product
product for
for chilled
chilled and
and
CVM
CVM etc.
etc.
+100
+490
+655
+2,140
+1,281
Sales volume
183,663
„Other
„Other
—Retail
—Retail :: -1,201
-1,201 (-4.5%
(-4.5% vs.
vs. ly)
ly)
—Food
—Food service
service :: +661
+661 (+3.6%
(+3.6% vs.
vs. ly)
ly)
—Other
—Other :: +1,030
+1,030 (+4.4%
(+4.4% vs.
vs. ly)
ly)
(CVM
(CVM change
change etc)
etc)
Sales volume
188,330
„Chain
„Chain store
store (+5.7%
(+5.7% vs.
vs. ly)
ly)
—CBBBP
—CBBBP strategy
strategy
—Strengthen
—Strengthen category
category
management
management
2006 actual
—visualization
—visualization of
of operating
operating
activities
and
the
account
activities and the account actual
actual
condition
etc.
condition etc.
2007 plan
26
2007 Channel Strategy – Sales volume plan
(thousand cases)
2007 Plan
KINKI
MIKASA
CCWJ
Sales
% ch
Sales
% ch
Sales
Total
% ch
Sales
% ch
Vending
29,160
+0.6
26,169
+3.6
4,400
+4.9
59,730
+2.2
Chain store
18,197
+3.1
17,199
+10.3
4,255
-0.6
39,650
+5.7
CVS
9,942
+1.5
7,751
+5.7
1,803
+5.0
19,500
+3.5
Retail
11,455
-4.9
11,257
-4.6
2,910
-2.5
25,620
-4.5
8,041
+2.8
9,574
+4.0
1,569
+5.4
19,180
+3.6
11,006
+9.5
12,239
+2.2
1,401
+3.4
24,650
+4.8
87,800
+1.5
84,190
+3.7
16,340
+2.0
188,330
+2.5
Food service
Other
Total
When the influence accompanying CCWJ/NNB enterprise
adjustment is removed: % change is +3.7%
(CVM of CCWJ is transferred to NNB, and Coca Cola vending
machine of NNB is transferred to CCWJ)
*NNB is added up by other.
27
2007 Channel Strategy – CCWJ : Vending
¾Make high profitability channel, and strengthened competition predominance further.
Main
Main policy
policy
Promote
Promote new
new
development
development model
model
Profitable
Profitable market
market
development
development
Develop
Develop
Column
Column
managemanagement
ment
exploiting
exploiting
IT
IT
Improve
Improve low
low sales
sales VM
VM
(1)
(1) Re-Installation
Re-Installation of
of VM
VM
(2)
(2) Concentration
Concentration
(2
(2 VM’s
VM’s to
to 11 VM
VM in
in aa
location)
location)
(3)
(3) Retire
Retire
* The number of vending
machine installation :
sales extension : -1%
(vs. last year)
Percentage of a vending machine
Expand
Expand VPM
VPM by
by
systematic
systematic operation
operation
Present
Present condition
condition
Target
Target
Prime
Location
(15%)
Prime
Improvement
Improvement effect
effect
Location
(17%)
Raise
Raise VPM
VPM
Ordinal
location
Ordinal
(45%)
Location
(48%)
Improve
Improve
profitability
profitability
Improve
Improve
productivity
productivity
Low sales
•IT vending machine
sales extension: +30%
(vs. last year)
location
Low sales
(40%)
Location
(35%)
2006
2007
28
2007 Channel Strategy – KINKI : Chain store
<Main theme>
1. Specialize customer management
(1) category management => propose variety of goods
(2) promotion management => enforcement of an effective promotion, and
verification
(3) Revenue growth management => maximization of profit
2. The further improvement of market execution => operating process, activity in
store, and visualization of account P/L
Sales volume
: +10%
The vision of cooperation with a customer
Area
managers
Category management
Promotion management
Revenue growth management
Store business
Branch
PDCA
Headquarters
business
Whole image of customer management
CS
department
Customer
MD
Further improvement in market power of execution
Information system infrastructure
Supply chain management
No missing items and reduction of inventory in store
29
2007 Channel Strategy – MIKASA : Vending
¾Develop business proposal to exploit IT VMs and
Environmental response VMs
¾Strengthen indoor market deployment
¾Develop business proposal to exploit Support type VMs and
Disaster response type VMs
Expansion of number of
vending machines
* The number of vending
machine installation :
+4% (vs. last year)
=> sharing of CCWJ Know-how
Environmental
response VM
Support type VM
IT VM
* The rate of IT VM extension : +260% (vs. last year)
30
2007 Brand Strategy – Sales volume plan
(thousand case, %)
2006
Actual
Plan
2007
vs. last year
Component
Coca-Cola
14,635
15,100
Change
+465
Georgia
42,665
44,490
+1,825
+4.3
23.6
Soukenbicha
Aquarius
14,711
19,298
14,720
20,340
+9
+1,042
+0.1
+5.4
7.8
10.8
Hajime
8,551
8,740
+189
+2.2
4.7
Morinomizu
6,051
6,720
+669
+11.1
3.6
77,752
183,663
78,220
188,330
+468
+4,667
+0.6
+2.5
41.5
100.0
Other
Total
% ch
+3.2
8.0
31
2007 Brand Strategy (1)
Basic
Basic policy
policy Positioning
Positioning
A
A brand/theme
brand/theme
A
A strategy/directivity
strategy/directivity
¾
¾ Launch
Launch “No-calorie
“No-calorie Coca-Cola"
Coca-Cola" and
and “Coca-Cola
“Coca-Cola zero“
zero“
Coca Cola
Expansion of a volume share
Georgia
Core
brand
Soukenbicha
Soukenbicha
¾
¾ Activate
Activate global
global campaign
campaign "the
"the Coke
Coke side
side of
of life".
life".
Create
Create the
the drink
drink opportunity
opportunity of
of the
the teenage
teenage generation.
generation.
¾
¾ Stability
Stability and
and growth
growth of
of coffee
coffee business
business are
are realized
realized by
by
aa substantial
substantial portfolio.
portfolio.
¾
¾ Start
Start new
new advertising
advertising campaign
campaign targeting
targeting to
to the
the 20’s
20’s
woman.
woman.
¾
¾ Go
Go to
to the
the further
further stage
stage based
based on
on "fitness
"fitness science“
science“
Aquarius
¾
¾ Aquarius
Aquarius blue,
blue, Active
Active diet,
diet, and
and Vitamin-gard
Vitamin-gard ++ one
one
more
flavor
more flavor
32
2007 Brand Strategy (2)
Basic
Basic policy
policy Positioning
Positioning
Creation of
of net
net increase
increase volume
volume
Creation
Priority
Priority
brand
brand
Substantial
Substantial
products
products
offered
offered
Complement
Complement
brand
brand
A
A brand/theme
brand/theme
A
A strategy/directivity
strategy/directivity
Sprite
Sprite
¾
¾ Create
Create new
new brand
brand positioning
positioning in
in aa transparent
transparent carbonic
carbonic
acid
acid market
market
¾
Transparent
¾ Transparent carbonated
carbonated drink
drink for
for aa new
new young
young adult
adult
¾
Change
to
the
new
logo
which
is
common
to
the
¾ Change to the new logo which is common to the world.
world.
Karada
Karada
meguricha
meguricha
¾
¾ Training
Training and
and strengthening
strengthening as
as sugarless
sugarless tea
tea with
with the
the
original
original functional
functional value
value based
based on
on the
the Oriental
Oriental way
way of
of
thinking.
thinking.
Water
Water
¾
¾ Training
Training and
and strengthening
strengthening new
new water
water towards
towards personal
personal
natural
natural water
water and
and functional
functional water.
water.
Minute
Minute
Maid
Maid
¾
¾ Shift
Shift from
from aa juice
juice brand
brand to
to wellness
wellness brand.
brand.
¾
¾ Strengthen
Strengthen product
product lineup
lineup
-MORNING
ENERGY
-MORNING ENERGY :: themes
themes of
of the
the vitality
vitality of
of
evolution
/
training
morning
evolution / training morning
-HEALTH
-HEALTH BEAUTY
BEAUTY :: themes
themes of
of cosmetics
cosmetics and
and health
health
Hajime
Hajime
¾
¾ Establish
Establish of
of the
the new
new brand
brand positioning
positioning by
by launching
launching
SAORI
SAORI
Fanta
Fanta
¾
¾ Strengthening
Strengthening to
to keep
keep positioning
positioning as
as No.1
No.1 "" junior
junior and
and
senior
senior high
high school
school students'
students' change-of-air
change-of-air drink"
drink"
33
2007 Capital Investment Plan (Consolidated)
(million yen, %)
Investment
Land
Buildings
Machinery & Equipment
Sales equipment
Other
sub-total
Head office advanced paid
on account
Total
Depreciation
2006
Actual※
1,652
4,309
2,883
15,767
3,450
28,062
－
28,062
24,291
2007
Plan
2,108
3,798
1,987
14,362
3,734
25,989
1,500
27,489
24,831
vs. last year
Change
% ch
27.6
456
-11.9
-511
-31.1
-896
-8.9
-1,405
8.2
284
-7.4
-2,073
1,500
－
-2.0
-573
2.2
540
※2006 Actual is adjusted based on a total of ex-CCWJ and ex- KINKI CCBC.
＜Sales equipment (by area)＞
CCWJ area KINKI area MIKASA area
7,498
5,822
1,042
Investment (million yen)
15,800
11,400
2,400
No. of VMs (unit)
Total
14,362
29,600
34
［Reference］　35
OTC Market Share（Exclude. VM） － CCWH Area
Source：Intage
※The numbers outside the
graph are changes v.s. ly
（%, Point）
100%
Other
41.8%
D company
C company
5.8%
5.7%
-0.1
+0.7
6.0%
5.7%
-0.3
+0.8
B company
8.8%
-0.5
8.9%
A company
14.7%
-1.1
Coca-Cola
23.2%
-0.9
1Q
43.1%
42.6%
44.0%
43.0%
-0.1
+0.3
5.3%
5.9%
+0.0
+0.0
5.6%
5.7%
-0.2
+0.5
-0.4
5.4%
5.6%
8.2%
-0.5
8.7%
-0.7
8.6%
-0.5
14.5%
-0.8
15.1%
+0.2
15.4%
+0.1
15.0%
-0.3
21.8%
-1.1
21.7%
-1.1
22.1%
-0.3
22.1%
-0.9
2Q
3Q
4Q
Annual
2006
36
By Brand / By Channel Volume/Revenues/Gross Profits
2005 4Q
100％
2006 4Q
Other
47%
Hajime
Brand
Sokenbicha
5%
7%
7%
Aquarius
Georgia
37%
36%
6%
6%
6%
6%
6%
5%
38%
41%
27%
Coca-Cola
7%
Volume
Other
13%
Food Service
11%
Channel
15%
10%
CVS
26%
7%
Revenues
6%
Gross Profit
7%
Volume
12%
4%
16%
10%
38%
35%
5%
7%
7%
5%
7%
6%
36%
41%
7%
Revenues
6%
Gross Profit
2006 4Q
6%
5%
15%
14%
7%
7%
14%
11%
11%
12%
13%
4%
15%
10%
Chain Store
Volume
3%
7%
7%
12%
63%
60%
33%
5%
15%
18%
18%
Vending
5%
8%
7%
2005 4Q
100％
Retail
47%
46%
46%
32%
Revenues
Gross Profit
Volume
Revenues
Gross Profit
37
Group Company Overview - ４Q
＜ Coca-Cola West Japan＞
2005
4Q
Actual ※1
Net Revenue
Operating Income
41,236
1,352
Plan
※2
(million yen)
Actual
42,634
1,651
2006 4Q
vs. Plan
Change
% ch
vs. LY
Change
% ch
40,799
1,344
-1,835
-306
-4.3
-18.6
-437
-8
-1.1
-0.6
37,583
627
-2,272
-362
-5.7
-36.6
326
-93
0.9
-12.9
6,482
102
-220
3
-3.3
3.3
12
82
0.2
410.0
4,857
109
440
36
10.0
50.6
306
55
6.7
100.8
7,853
-0
-207
-91
-2.6
-
-18
177
-0.2
-
635
-42
-4
-25
-0.7
-
12
-20
1.9
-
＜ KINKI Coca-Cola Bottling＞
Net Revenue
Operating Income
37,257
720
39,856
989
＜ MIKASA Coca-Cola Bottling＞
Net Revenue
Operating Income
6,470
20
6,702
98
＜ NISHINIHON Beverage＞
Net Revenue
Operating Income
4,550
54
4,416
72
＜ KANSAI Beverage Service＞
Net Revenue
Operating Income
7,871
-177
8,061
91
＜ MIKASA Beverage Servce＞
Net Revenue
Operating Income
623
-22
639
-17
※1 2005 4Q actual figure of CCWJ, KINKI, MIKASA is assumed as it was the same company form
& business adjusted for this term
※2 The above plan is the figure based on performance forecast announced as of Aug.8, 2006.
38
Performance Trend (Consolidated)
(million yen)
Net
Revenues
Operating
Income
Recuring
Income
Net
Income
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
(Plan)
113,490
115,408
117,991
164,731
207,827
226,111
247,737
240,825
253,248
245,874
327,821
415,700
10,481
10,737
12,533
15,160
17,449
16,634
16,704
19,638
16,860
11,830
12,321
14,500
11,273
11,054
12,510
15,889
18,516
16,021
17,005
19,895
17,065
12,256
13,225
15,300
5,721
5,428
5,872
6,823
5,700
1,420
7,086
9,380
8,564
7,305
7,570
8,900
450,000
25,000
400,000
350,000
20,000
15,000
250,000
Operating
Income
200,000
150,000
2001/4/5
Make Mikasa CCBC
subsidiary
1999/7/1:
Merged with
Sanyo CCBC
300,000
2006/7/1
Integration with
Kinki CCBC
10,000
Net Revenues
100,000
5,000
50,000
0
0
（MM JPY）
96
97
98
99
00
01
02
03
04
05
06
07 plan
（MM JPY）
39
Financial Data (Consolidated)
＜Operating Income／Operating Income Ratio＞　＜Net Assets / Equity Ratio＞
25,000
20,000
10.0
Operating income ratio
8.2
6.7
6.7
15,000
6.0
150,000
4.8
5,000
12,321
11,830
81.5
81.0
4.0
16,704
82.5
82.0
3.8
16,860
82.1
Operating income
19,638
10,000
200,000
83.0
Equity Ratio
Net Assets
8.0
83.5
83.2
250,000
80.7
81.0
100,000
164,658
2.0
250,463
80.6
165,454
167,036
80.5
173,608
80.0
50,000
79.5
0
（MM JPY）
0.0
2002
2003
2004
2005
2006 （％）
＜ROA／ROE＞
2003
2004
2005
2006
8.4
9.7
ROA
（%）
＜EPS／PER＞
50.0
EPS
8.3
8.0
5.9
6.0
100.0
5.1
116.25
PER
108.80
93.42
85.49
33.5
82.22
29.5
4.0
2.0
2002
150.0
12.0
10.0
79.0
0
（MM JPY）
5.7
4.4
ROE
5.2
4.3
50.0
20.8
3.6
24.2
18.1
0.0
（％）
2002
2003
2004
2005
2006
0.0
（JPY）
0.0
2002
2003
2004
2005
2006 （times）
40
Our Group - Structure
Ｇ
Coca-Cola West
Holdings
Non-Coca-Cola Business
Associated Companies
Akiyosi Systems
C&C
Seiko Corporate Japan
Rex Estate
West Japan Service
Takamasamune
Nichibei
CCW Logistics
KINKI
Coca-Cola
Bottling
Coca-Cola
West Japan
(CCWJ)
Nishinihon Beverage
CCWJ Vending
CCWJ Customer Service
Kansai Beverage Service
Nesco
Kadiac
Mikasa Beverage Service
Mikasa Service
CCWJ Products
CCW Daisen Products
Kinki Coca-Cola Products
MIKASA
Coca-Cola
Bottling
Distribution
Production
MIKASA area
KINKI area
CCWJ area
41
Our Group Companies - Principal Business
Our Group Compa ni es
（１） Coca-Cola West Japan (CCWJ)
（２） Kinki Coca-Cola Bottling
（３） Mikasa Coca-Cola Bottling
Pri nci pa l B us i nes s
Beverage sales
Beverage sales
（４） CCWJ Products
Beverage sales
Beverage production
（５） Kinki Coca-Cola Products
Beverage production
（６） Coca-Cola West Daisen Products
Beverage production (mineral water)
（７） Coca-Cola West Logistics
Freight transport-operations
（８） Coca-Cola West Japan Vending
（９） Nishinihon Beverage
Vending machine operations (Coca-Cola products)
Vending machine sales and servicing
（10）Kansai Beverage Service
Vending machine sales and servicing
（11）Mikasa Beverage Service
Vending machine sales and servicing
（12）Nesco
Vending machine operations
（13）KADIAC
Vending machine operations (in the Kansai Air Port)
（14）Coca-Cola West Japan Customer Service
（15）Mikasa Service
Vending machine-related businesses
Vending machine-related businesses
（16）Nichibei
Manufacture of processed foods
（17）Takamasamune
Production and sales of alcoholic beverages
（18）West Japan Service
Insurance, leasing, and business machine sales
（19）Rex Estate
Real estate business
（20）Seiko Corporate Japan
（21）C&C
Maintenance and repair of motor vehicle
Sales and manufacturing of food, Chain restaurant business
（22）Akiyoshi Systems
Chain restaurant business
42
Coca-Cola System in Japan
Equity Holding
Coca-Cola
National
Beverages Co.
(CCNBC)
The Coca-Cola Company
(TCCC)
(100%)
(100%)
Coca-Cola
Tokyo R&D Co.
(CCTR&D)
Coca-Cola
Japan Co.
(CCJC)
Coca-Cola (4%)
West Holdings
(CCWH)
Coca-Cola
IBS Co.
(CCIBS)
Coca-Cola
Customer
Marketing
Company
(CCCMC)
FV
Corporation
Jointly owned by
TCCC, CCJC,
and bottlers
Coca-Cola
Central Japan
(CCCJ)
(5%)
10 Coca-Cola
Bottling
Companies
(CCBC)
43
Coca-Cola Related Companies and Their Roles
1. Coca-Cola West Holdings Co,, Ltd. (CCWH)
6. Coca-Cola National Beverages Co., Ltd. (CCNBC)
In July, 2006, Coca-Cola West Japan Company, Limited
and Kinki Coca-Cola Bottling Company, Limited merged the
management of both companies by establishing a joint
holding company CCWH.
Jointly established in April 2003 by TCCC and CCBCs for the
purpose of creating an optimal nationwide supply chain. It
started operation in October 2003. CCNBC procures raw
materials, coordinates manufacturing and supply/demand
plans on a nationwide basis, and supply products to the
bottlers.
2. The Coca-Cola Company (TCCC)
Established 1919 in Atlanta, Georgia. Carries the rights to
grant a license to manufacture and sell Coca-Cola
products to the bottlers. TCCC (or its subsidiary) makes
franchise agreements with the bottlers.
3. Coca-Cola (Japan) Co., Ltd. (CCJC)
Established 1957 in Tokyo, as “Nihon Inryo Kogyo K.K.,” a
wholly-owned subsidiary of The Coca-Cola Company. The
company name was changed in 1958 to Coca-Cola (Japan)
Company, Limited. CCJC is responsible for marketing
planning as well as manufacturing and distribution of
concentrate in Japan.
4. Coca-Cola Tokyo Research & Development Co., Ltd.
(CCTR&D)
Established in January 1993 as a wholly-owned subsidiary
of The Coca-Cola Company. Since January 1995, carries
out product development and technical support to respond
to the needs of the Asian region.
5. Coca-Cola bottlers (CCBCs)
There are 12 bottlers in Japan, which are responsible for
selling Coca-Cola products in the respective territories.
7. Coca-Cola IBS Co., Ltd (CCIBS)
Established through joint investment by The Coca-Cola
Company and its bottling partners in Japan, and the company
began operations on January 1, 2007. It is charged with
providing business consulting services to the Coca-Cola
system in Japan, as well as developing and generally
maintaining the information systems to support such work.
8. Coca-Cola Customer Marketing Company (CCCMC)
Established through joint investment by Coca-Cola (Japan)
Co., Ltd. and all of its bottling partners in Japan, and the
company began operations on January 1, 2007. It is charged
with holding business negotiations with major retailer outlets,
such as nationwide convenience stores and supermarket
chains, as well as developing proposals for sales promotions
and storefront activities.
9. FV Corporation (FVC)
Jointly established in May 2001 by CCBCs and CCJC. FVC
carries out sales negotiations with national chain vending
operators, and deals with non-KO products as well as KO
products.
44
Glossary(1)
1. Channel (Business Unit)
Vending:
Retail sale business to distribute products through vending machines to
consumers
Chain store:
Wholesale business for supermarket chains
Convenience Store:
Wholesale business for convenience store chains
Retail:
Wholesale business for grocery stores, liquor shops, and other over-the-counter
outlets
Food Service:
Syrup sale business for fast food restaurants, movie theaters, sports arenas,
“family restaurants,” and theme parks
On-Premise:
Refers to the syrup and package sales business in the “eating out” market
Distributor:
Middleman who work for Coca-Cola to handle our products in remote areas and
islands.
45
Glossary(2)
2. Vending
Regular vending machine:
A vending machine offered free of charge to a customer who supervises its operation and uses it to sell
products purchased from us.
Full service vending machine:
A vending machine installed and managed directly by us (product supply, collection of proceeds etc.).
Fees are paid to the location proprietors.
Out-market vending machine:
An outdoor machine whose users are relatively unspecific
In-market vending machine:
An indoor machine whose users are relatively specific
VPM
Sales volume per vending machine
46
Glossary(3)
3. Chain Store
National chain:
National chain supermarket that CCNSC are responsible for negotiating
Regional chain:
Chain supermarket that owns its stores in the two or more bottlers’ territories
Local chain:
Chain supermarket that owns its stores in the single bottler’s territory
CBPPP:　Stands for Channel, Brand, Price, Promotion
RGM:
Stands for Revenue Growth Management
4. Other
Sales mix
Composite of products by brand, channel, package, etc. The difference between budget and actual
sales or cost of sales might be affected by a change in product sales mix as well as a change in unit
price
47
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 risks and uncertain factors such as those
listed below.
- Intensification of market price competition
- Change in economic trends affecting business climate
- Major fluctuations in capital markets
- Uncertain factors other than those above
48