3 Q Performance Announcement for the Year Ending December 2006 October 25, 2006

3Q Performance Announcement
for the Year Ending December 2006
October 25, 2006
Coca-Cola West Holdings (2579）
URL
Contact
TEL 092-283-5718
http://www.ccwh.co.jp/
PR・IR Group
FAX 092-283-5729
E-mail [email protected]
Contents
Ⅱ．Marketing
Ⅰ．Performance Results … 3 pg
1．3Q Review
2．3Q Consolidated Profit Change Factors
… 5 pg
①Key Brand Activities
…21 pg
3．Group Companies’ Performance　… 7 pg
②Key Channel Activities
…23 pg
4．4Q Performance Forecast
… 8 pg
③Overview of 3Q
…25 pg
5．4Q Consolidated Profit Change Factors
… 9 pg
6．Performance Forecast for the fiscal year
…10 pg
2．4Q Marketing Activities Plan
①Brand Strategy
②Package Strategy
…27 pg　1．3Q Earnings
③Channel Strategy
Ⅱ．Group Restructuring
1．Group Growth Strategy
…12 pg
2．Group Restructuring
…13 pg
3．Group Restructuring Plan
4．Consolidation of Logistics Companies
5．Synergies from Integration of Logistics
Companies
…14 pg
…15 pg　…16 pg
6．Reduction of Capital: Kinki, Mikasa,
and Kansai Beverage
…17 pg
7．Renaming Daisen Beverages
…18 pg
➃Scenario for Achieving Sales Volume
…29 pg
…30 pg
…31 pg
[Reference]
・OTC Market Share (Excl. VM)
…33 pg
・By Brand/By Channel: Sales Volume/Revenue/Gross Profit on Sales
Composition Ratio
…34 pg
・Performance Trend (Consolidated)
…35 pg
・Financial Data
…36 pg
・Coca-Cola System in Japan
…37 pg
・Overview of Group Companies
…39 pg
・Terminology
…40 pg
1
Ⅰ. Performance Results
2
3Q Earnings（Jul-Sep）: Sales Volume
¾Sales Volume　；　vs. plan -2.3％、　vs. last year -4.0％
2005
Actual
※1
Plan
※2
Actual
（000 case、% ）
2006 3Q
vs. Plan
Difference
vs. Last Year
%
Difference
%
July
19,087
17,505
17,201
-304
-1.7
-1,886
-9.9
Aug
19,934
20,361
21,058
697
3.4
1,124
5.6
Sep
17,414
17,596
15,919
-1,677
-9.5
-1,495
-8.6
3Q Total
56,436
55,462
54,178
-1,284
-2.3
-2,257
-4.0
※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.
＜Sales Volume by month （vs. Plan／vs. Last Year)＞
10
5.6
（ ％）
vs. Plan
vs. LY
5
0
3.4
-1.7
-5
-10
-8.6
-9.5
-9.9
Jul
Aug
Sep
3
3Q Earnings（Jul-Sep）: Consolidated Profits
¾Revenue: vs. Plan 2,009 MM JPY decline（‐1.7%）、vs. LY 46,539 MM JPY increase（＋66.5%）
¾Operating Income: vs. Plan 34 MM JPY increase（＋0.6%）、vs. LY 983 MM JPY increase（＋20.8%)
2005 3Q
Actual ※ 1
Revenue
Operating Income
Recurring Income
Net Income
69,957
4,720
4,746
2,594
Plan
※2
Actual
118,507
5,670
5,936
3,470
2006 3Q
vs. Plan
Difference
%
116,497
5,704
5,909
3,455
-2,009
34
-26
-14
（MM JPY、%）
vs. Last Year
Difference
%
-1.7
0.6
-0.5
-0.4
-46,539
983
1,162
861
66.5
20.8
24.5
33.2
※1. 2005 3Q actual figure is the consolidated actual figure of existing company group (former CCWJ).
※2. The above plan is based on performance forecast announced as of Aug. 8, 2006.
■Reference ：In the case of adding ex-Kinki group’s actuals
2005 3Q
Actual
Revenue
Operating Income
Recurring Income
Net Income
120,900
7,500
7,600
4,100
Actual
116,497
5,704
5,909
3,455
（MM JPY、%）
2006 3Q
vs. Last Year
Difference
%
-4,403
-1,796
-1,691
-645
-3.6
-23.9
-22.3
-15.7
※The above 2005 actual is adjusted based on a total of ex-CCWJ and ex- Kinki CCBC, eliminating inter-company transaction.
4
3Q Consolidated Profit Change Factors (vs. Plan)
＜Gross Profit＞
（BB JPY）
51.1
Gross Profit – 3Q plan
＊Major factors for profit decrease
－1.1
Impact by Sales Company(※） Decrease in Sales Volume
・Impact from Sales Company(※）
－0.6
Impact by Sales Company(※)　Decrease from Sales Mix
Decrease by other group companies
－0.3
Other increase
＋0.1
Sales Volume decrease
Sales Mix
・Decrease from other
group companies 1.1BB JPY －0.6BB JPY
－0.3BB JPY
49.2
Gross Profit – 3Q Actual
450
500
※Sales companies are ＣＣＷＪ、Kinki CCBC, and Mikasa CCBC
＜Operating Income＞
（BB JPY）
5.7
Operating Income - 2006 3Q Plan
Decrease in Gross Profit
＊Major factors for profit decrease
－1.9
・Decrease in Gross Profit
＋0.6
Decrease in Advertising Cost
Decrease in Sales Commission
＋0.3
Decrease from Service Fee
＊Major factors for profit increase
・Decrease in advertising cost 0.6BB JPY
＋0.3
Decrease from Rental Expense
・Decrease in sales commission 0.3BB JPY
＋0.2
Decrease in Depreciation Cost
＋0.2
Decrease in other cost
－1.9BB JPY
＋0.3
・Decrease in service fee
0.3BB JPY
・Decrease in rental expense
0.2BB JPY
・Decrease in depreciation cost 0.2BB JPY
5.7
Operating Income - 2006 3Q Actual
0
50
5
3Q Consolidated Profit Change Factors（vs. LY）
＜Gross Profit＞
（Billion Yen）
30.2
Gross Profit - 2005 3Q　Net increase from Kinki Group
＋20.3
Sales Mix impact
＋0.9
Other increase
＊Major factors for profit increase
＋0.3
－1.8
Decrease of sales volume
Decrease from change in accounting
classification
20.3BB JPY
・Sales Mix
0.9BB JPY
＊ Major factors for profit decrease
－0.7
49.2
Gross Profit- 2006 3Q
・Net increase from Kinki Group
・Decrease of sales volume
‐1.8BB JPY
・Decrease from appropriations
‐0.7BB JPY
250
＜Operating Income＞
（Billion Yen）
4.7
Operating Income - 2005 3Q
＊Major factors for profit increase
Increase in Gross Profit
Increase from change in accounting
classification
Decrease of advertising cost
＋19.0
＋0.7
＋0.4
Decrease of Kinki Group SG&A
－18.5
－0.2
Increase of depreciation cost
Increase of other expenses
－0.4
・Increase in Gross Profit
19.0BB JPY
・Change in account classification
0.7BB JPY
・Decrease in advertising cost
0.4BB JPY
＊Major factors for profit decrease　・Kinki Group SG&A cost
・Increase in depreciation cost
‐18.5BB JPY
‐0.2BB JPY
5.7
Operating Income - 2006 3Q
0
6
Group Companies’ Performance
（MM JPY、%）
＜ Coca-Cola West Japan＞
Revenue
Operationg Income
2005
3Q
Actual ※ 1
50,957
2,407
＜ Kinki CCBC＞
Revenue
Operating Income
2006 3Q
vs. plan
Actual
Plan
※2
49,768
2,549
48,343
2,293
Difference
-1,425
-255
46,001
1,687
45,865
809
45,472
1,549
＜ Mikasa CCBC＞
Revenue
Operating Income
8,304
303
8,056
276
＜ Nishi Nihon Beverage＞
Revenue
Operating Income
5,147
56
＜ Kansai Beverage Service＞
Revenue
Operating Income
＜ Mikasa Beverage Service＞
Revenue
Operating Income
vs. LY
%
-2.9
-10.0
Difference
-2,613
-114
%
-393
739
-0.9
91.3
-528
-137
-1.1
-8.1
8,051
226
-5
-50
-0.1
-18.1
-253
-77
-3.0
-25.4
4,987
135
4,954
142
-32
7
-0.6
5.2
-193
86
-3.7
153.6
8,897
575
9,044
361
8,785
373
-259
11
-2.9
3.0
-112
-202
-1.3
-35.1
723
16
756
28
743
30
-13
1
-1.7
3.6
19
13
2.6
81.3
-5.1
-4.7
※1 2005 3Q 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.
7
4Q Performance Forecast (Oct-Dec） - Consolidated Profits
（MM JPY、%）
2005
4Q
Actual ※
Actual
2006 4Q
vs. LY
Difference
%
Revenue
58,557
103,200
44,643
76.2
Operating Income
1,796
3,600
1,804
100.4
Recurring Income
1,999
3,900
1,901
95.1
Net Profit
2,168
2,200
32
1.5
※2005 4Q Actual is the actual consolidated figure of existing group (former CCWJ).
■Reference ：In the case of adding ex-Kinki group’s 2005 actuals
2005
4Q
Actual ※
Plan
（MM JPY、%）
2006 4Q
vs. LY
Difference
%
100,900
103,200
2,300
2.3
Operating Income
2,700
3,600
900
33.3
Recurring Income
2,800
3,900
1,100
39.3
Net Profit
2,800
2,200
-600
-21.4
Revenue
※The above 2005 actual is adjusted based on a total of ex-CCWJ and ex- Kinki CCBC, eliminating inter-company transaction.
8
4Q Consolidated Profit Change Factors (vs. LY)
＜Gross Profit＞
（BB JPY）
25.5
Gross Profit – 2005 4Q
Net increase from Kinki Group
＋19.8
Increase from Sales Volume
＋0.5
＋0.1
Sales Mix Impact
Decrease from change in Accounting
Classification
－1.1
－0.2
Decrease from Service Fee
Other Decreases
－0.2
200
300
＜Operating Income＞
0.5BB JPY
・Sales Mix Impact　0.1BB JPY
＊Major factors for Profit Decrease
・ Decrease from Change in
‐1.1BB JPY
Accounting Classification
‐0.2BB JPY
＊ Major factors for Profit Increase
＋18.9
＋1.1
Decrease from Personnel cost
＋0.4
＋0.6
Decrease from other Costs
－18.9
Decrease from Kinki Group SG&A
－0.3
Operating Income - 2006 4Q plan
・Increase in Sales Volume
（BB JPY）
Increase of Gross Profit
Increase from change in Accounting
Classification
Increase in Depreciation Cost
19.8BB JPY
400
1.8
Operating Income - 2005 4Q
・Net Increase for Kinki Group
・Decrease of Service Fee
44.4
Gross Profit - 2006 4Q plan
＊Major factors for Profit Increase
・Increase in gross profit
18.9BB JPY
・Increase from change in
Accounting Classification
・Decrease in Overhead Cost
1.1BB JPY
0.4BB JPY
＊Major factors for Profit Decrease
・Kinki Group SG&A
‐18.9BB JPY
・Increase in Depreciation Cost
‐0.3BB JPY
3.6
0
100
9
Performance Forecast for the Fiscal Year
■West Group 2H Plan＋ex-CCWJ 1H Consolidated Actual Figure
2005
Actual
Revenue
Operating Income
Recurring Income
Net Profit
※
245,874
11,830
12,256
7,305
Plan
333,400
12,400
13,300
7,400
（MM JPY, %)
2006
vs. Last Year
Difference
%
87,526
35.6
570
4.8
1,044
8.5
95
1.3
※2005 actual figure is the actual consolidated figure of existing company group (former CCWJ).
■Reference ：In the case of adding 2005 actual figure of ex-Kinki Group　（West Group full year＋ex-Kinki Group 1H Consolidated Actual）
（MM JPY、%）
2005
Actual
Revenue
Operating Income
Recurring Income
Net Profit
※
417,444
17,812
18,065
10,554
2006
Plan
413,800
13,100
13,800
6,400
vs. LY
Difference
-3,644
-4,712
-4,265
-4,154
※The above figurel is adjusted based on a total of ex-CCWJ and ex- Kinki CCBC, eliminating inter-company transaction.
%
-0.9
-26.5
-23.6
-39.4
10
Ⅱ. Group Restructuring
11
Group’s Growth Strategy
Return to
Stakeholders
Maximize
Value
Leadership in
the KO system
in Japan
Market Execution
Expansion Efficiency
Group Restructuring
Strategic Partnership with TCCC/CCJC
12
Group Restructuring
Restructure group companies in order to achieve
further growth of CCW group.
Consolidation of Logistics Companies
Capital Reduction of
Kinki, Mikasa, and Kansai Beverage Services
Corporate Name Change for Daisen Beverages
13
Group Restructuring Plan
Group Restructuring Plan
CCWJ
CCWJ
Nishi
Nishi Nihon
Nihon Beverage
Beverage
ＣＣＷＪ
ＣＣＷＪ Products
Products
ＣＣＷＪ
ＣＣＷＪ Vending
Vending
ＣＣＷＪ
ＣＣＷＪ Customer
Customer Service
Service
ＣＣＷＪ
ＣＣＷＪ Logistics
Logistics
Change capital structure and reorganize
by function
Sales
Sales
(Commercial
(Commercial Distribution)
Distribution)
Vending
Vending Operation
Operation
Nichibei
Nichibei
Takamasamune
Takamasamune
West
West Japan
Japan Service
Service
Kansai
Kansai Beverage
Beverage Service
Service
Nesco
Nesco
CCWH
Kinki
Kinki
Kinki
-Cola Products
Kinki Coca
Coca-Cola
Products
Kansai
Kansai Logistics
Logistics
Cadiac
Cadiac
Lex
Lex Estate
Estate
Seiko
Seiko Corporation
Corporation Japan
Japan
CC and
and CC
Akiyoshi
Akiyoshi systems
systems
Mikasa
Mikasa
Mikasa
Mikasa Beverage
Beverage Service
Service
Mikasa
Mikasa Logistics
Logistics
Mikasa
Mikasa Service
Service
Diasen
Diasen Beverage
Beverage
Logistics
Logistics Operation
Operation
CCWH
Vending
Vending Service
Service
Manufacturing
Manufacturing
Consolidation of
3 Logistics
Companies
Beverage
Beverage Operator
Operator
Operation
Operation
Non
-Coca-Cola
Non-Coca-Cola
Business
Business
14
Consolidation of Logistics Companies
¾3 logistics companies will be consolidated to achieve further growth of the group.
＜Objective of the Consolidation＞
① Achieve economies of scale through expansion and enhance
quality through efficient operations
② Share best practice and know-how of low-cost operations
③ Expedite decision-making related to logistics and strengthen
execution capabilities
④ Consolidate back-office operation
⑤ Capture opportunities outside CCW group such as CCNBC
＜Corporate Profile after Consolidation＞
CCWJ
CCWJ Logistics
Logistics
Kansai
Kansai Logistics
Logistics
Mikasa
Mikasa Logistics
Logistics
Date of Consolidation:
January 1, 2007 (plan)
Name
Coca-Cola West Logistics, Co., Ltd.
Business
Carrier business
Address
Hiroshima City
Representative (Plan)
Katsuyoshi Kawabe
Capital
JPY70 MM
Total Assets
JPY3,362MM
Fiscal year end
December
Note: Total assets are the sum of each company’s total assets as of December 31, 2005.
15
Synergy from Consolidation of Logistics Companies
＜Synergy of Consolidation＞
„ Expand operations utilizing our own vehicle
¾ Place our own vehicle in Kansai area：　Secure 35% of our own vehicle operating rate
¾ Assess opportunities of acquisition of other logistics companies
„ Secure backload taking advantage of regional network across west Japan
„ Promote collection and recycling business
„ Consolidate back-office function
《Reference》 Projected Income Statement Highlight
2006
Revenue
Operating
Income
Operating
Income Ratio
(JPY in Million）
2008
2007
2009
16,630
16,770
17,650
18,360
490
590
710
920
3.0％
3.5％
4.0％
5.0％
16
Reduction of Capital: Kinki, Mikasa, and Kansai Beverage
¾Reduce capital of Kinki, Mikasa, and Kansai Beverages to JPY100 MM without
compensation
＜Objective of Capital Reduction＞
・Shift to small corporation category under the corporation act and
enhance flexibility of business management as a functional company within
the CCW group such as in designing a decision-making body
9Kinki Coca-Cola Bottling: JPY10.9 billion ⇒ JPY100 MM
9Mikasa Coca-Cola Bottling JPY4.1 billion ⇒JPY100 MM
9Kansai Beverage: JPY1.4 billion
⇒ JPY100 MM
Effective Date: Mid December 2006 (plan)
《Reference》　Capital of Coca-Cola West Japan : JPY100MM
17
Renaming Daisen Beverages
＜Reason for the Change of Corporate Name＞
・Daisen beverages became a wholly-owned subsidiary of CCWH in August 2006.
By adding “Coca-Cola West” in the company name, it is clarified that Daisen
Beverages is the group company of CCWH and the sense of unity within the
group will be further nurtured.
Daisen
Daisen Beverages
Beverages
New
；
New Name
Name；
Coca
-Cola West Daisen
Coca-Cola
Daisen Products
Products
Effective Date of Rename: December 31, 2006 (plan)
18
Ⅲ. Marketing
19
Review of 3Q
20
Review of 3Q　－　Key Brand Activities (1)
2H　Key Brand
Brand Activities
Activities
2H　Key
Actual Sales Volume By Brand
＜Maximizing the Summer Demand＞
■Coca-Cola
⇒Expansion of Diet Coke
⇒Deploying the value-added can
■Aquarius
⇒Price, Heat-stroke countermeasures
⇒Deploying the promotion of the value-added can,
etc.
⇒Expansion of Active Diet and Freestyle
（Unit：000’ uc、％）
⇒Brand re-vitalization through introduction of
seasonal and sub-flavors
Rate
Change
Rate
4,661
-721
-13.4
-664
-12.5
Georgia
Sokenbicha
9,982
-596
-5.6
-338
-3.3
4,951
74
+1.5
40
+0.8
Aquarius
8,327
218
+2.7
320
+4.0
Hajime
2,543
-891
-26.0
-737
-22.5
Morino Mizu/Minaqua
1,891
-229
-10.8
-151
-7.4
21,824
862
+4.1
-728
-3.2
54,178
-1,284
-2.3
-2,257
-4.0
Others
Total
Georgia Sales Growth by Month (v.s. LY)
＜Re-vitalizing Georgia＞
＜Re-vitalizing Hajime＞
Change
v.s. Ly
Coke
■Non-Sugar Tea
⇒Karada Meguricha ： Maintain coverage, start of a
new promotion
⇒Maximum implementation of New / renewal
products and increasing retail exposure.
⇒Maximum implementation of the new campaign
with displays at the counter
Actual
Sales
Q3 2006
v.s. Plan
8%
6%
4%
2%
0%
△2%
△4%
△6%
△8%
△10%
△12%
Jul
2005
Ａｕｇ Ｓｅｐｔ Ｏｃｔ
Ｎｏｖ
Ｄｅｃ
Ｊａｎ
2006
Ｆｅｂ
Ｍａｒ
Ａｐｒ
Ｍａｙ
Ｊｕｎ
Ｊｕｌ
Ａｕｇ Ｓｅｐｔ Ｏｃｔ
※10/19 Current
21
Review of 3Q　ｰ　Key Brand Activities（2）
2H　KeyBrand
BrandActivities
Activities
2H　Key
＜Maximizing the platform through new products＞
⇒Further nurturing new products in 1H
Sales Performance of Key New Products
7.2MM BAPC
Composition Rate16.9％
（-5.9% vs. LY)
Launched
⇒Introduction of new added-value products
⇒Introduction of seasonal flavors for key brands
Aquarius Freestyle
0.99 MM uc (in Apr)
Georgia Deepresso
0.73 MM uc (in Jul)
Karada Meguricha
0.61 MM uc (in May)
Georgia Five Blend
0.28 MM uc (in Aug)
Coca-Cola Citra
0.22 MM uc (in May)
Hajime Jikkuri Umami
0.12 MM uc (in Sep)
Hajime Sumi Gyokuro
0.09 MM uc (in Jul)
DASANI Sparkling
0.06 MM uc (in Aug)
& others
22
Review of 3Q　ｰ　Key Channel Activities（1）
Actual Sales Volume By Channel
2H　Key Channel
Channel Activities
Activities
2H　Key
Q3 2006
■Vending
⇒Expand # of VM in the market　⇒Deployment of VPM※ improvements
⇒Engage in implementing tests for chilled products
※VPM…　（Volume per machine)
■Chain Store
⇒Implement pricing strategies in large PET with a
focus on Hajime, Mineral Water, and Aquarius
⇒Strengthening category management.
（000’ uc, %）
Vending
Change
v.s. Ly
Rate
Change
Rate
16,459
-142
-0.9
-307
-1.8
12,983
-347
-2.6
97
+0.8
CVS
5,365
-164
-3.0
-248
-4.4
Retail
7,788
-75
-0.9
-1,067
-12.1
Food Service
5,332
-172
-3.1
-316
-5.6
493
-31
-6.0
-45
-8.4
5,758
-353
-5.8
-371
-6.1
54,178
-1,284
-2.3
-2,257
-4.0
Chain Store
Distributor
Others
Total
Number of Vending Machines in the Market　(excl. cup vending machines)
■On-Premise※
⇒Market cultivation with a focus in the new quality
channel
⇒Strengthening sales of existing key accounts
245,000
240,000
（# of Machines）
※On-premise…Refers to the syrup and package sales business in
the “eating out” market
v.s. Plan
Actual
Sales
3,599 Less
vs. Plan
235,000
230,000
234,341
237,774
225,000
220,000
2005
End of Dec
2006
End of Sept Actual
23
Review of 3Q　ｰ　Key Channel Activities（2）
2LPET “Volume Share” Trend By Maker in SM
40
CCWH
B
D
CCWH
35
A
C
30
Jan Sept
30.6％
25
20
Ｄ
C
Ｂ
Ａ
15
10
5
0
1/2
40
35
30
25
20
15
10
5
0
1/16 1/30 2/13 2/27 3/13
3/27“Value
4/10 Share”
4/24 5/8Trend
5/22By6/5
6/19in SM
7/3 7/17 7/31 8/14 8/28 9/11 9/25
2LPET
Maker
CCWH
B
D
CCWH
Ａ
Ｂ
1/2
1/16
1/30 2/13 2/27 3/13
C
3/27 4/10 4/24
A
C
Jan Sept
31.8％
Ｄ
5/8
5/22
6/5
6/19
7/3
7/17 7/31 8/14 8/28
9/11 9/25
24
General Overview of 3Q
„Sales
⇒Due to west Japan’s favorable weather conditions in August, the sales were positive. However,
Kyushu’s weather in September was not favorable thus affecting sales. As a result, 3Q results v.s. plan
and v.s. Ly were -2.3% and -4.0% respectively.
„Brand
⇒Positive momentum was attributed to the success of Georgia’s core product renewal
⇒Favorable recovery is attributed to Sokenbicha’s restage effects and implementation of the fit-bottle.
⇒Aquarius is establishing a concrete position by satisfying the summer demand.
⇒Coca-Cola and Hajime were down v.s. plan and v.s. Ly.
„Channel
⇒In the Vending area, the number of vending machines has increased, but it hasn’t achieved the target.
⇒Chain store volume was down v.s. plan but up v.s. Ly., mainly due to the large PET pricing strategy in
the chain store during the peak season.
Activity Points for Q4
（１）Brand Strategy
⇒Recapturing and strengthening
Key Brands
（２）Package Strategy
⇒Increasing the selection of warm
products and implementing
aggressive market development
（３）Channel Strategy
⇒Investment focus on vending and
chain store.
25
Q4 Activity Plan
26
Key Activities in Q4　－　Brand Strategy
Activity Points
Sales Plan By Brand
¾Recapturing and strengthening key
brands
（000' uc、％）
2005
Q4
Actuals
Coke
Q4 2006 Plan
Plan
v.s. Ly
Change
Rate
■Georgia
⇒Recapturing and strengthening during peak seasons
3,132
3,337
205
+6.6
11,906
12,628
722
+6.1
2,931
3,211
280
+9.6
Aquarius
3,053
3,647
594
+19.4
Hajime
2,221
2,362
141
+6.4
Morino Mizu
Others
1,291
1,392
101
+7.8
18,966
18,774
-192
-1.0
■Aquarius
Total
43,499
45,351
1,852
+4.3
⇒Continued expansion of favorable sales by introducing a sub
flavor, “Vitamin Guard”
⇒Implementation in testing hot drinks
Georgia
Sokenbicha
※The 2005 actuals above are a total of CCWJ, Kinki and
Mikasa’s actual results
★Details on the next page
■Coca-Cola
⇒Continued expansion of Diet Coke
⇒Expanding sales by creating a Christmas theme at the outlets.
■Non-Sugar Tea
⇒Continued coverage of Karada Meguricha as well as
implementing new promotions
⇒Implementation of hot drinks
27
Key Activities in Q4　－　Georgia Strengthening Implementation
■Georgia ： Recapturing and strengthening during peak seasons
¾Expansion of retail exposure and maximum implementation of new / renewal
products
⇒Strengthened implementation of the new Georgia Emblem Black（10/2～）
¾Implementation of the Autumn Promotion
⇒Georgia G１Challenge （8/28～）
¾Introduce half case, multi-pack sales (Supermarket)
¾Introduce hot products
Oct 2～
Rich Café
Au lait
Emblem
Black
Mild Café Au
Lait
28
Key Activities in Q4　－　Package Strategy
■Implement hot products with a focus on Georgia PET
⇒Vending ： Increase in VPM through a smooth transition to hot
products as well as optimization of VM column.
※ＶＰＭ…（Ｖｏｌｕｍｅ Ｐｅｒ Ｍａｃｈｉｎｅ）
⇒OTC　： Creation of the “Winter Sales Area” through a focus on
maximizing Georgia and Non-sugar tea availabilities.
Hot PET Products
29
Key Activities in Q4　－　Channel Strategy
Activity Points
Sales Plan By Channel
（000' uc, %）
2005
Q4 2006 Plan
Q4
Actuals
Vending
Plan
v.s. Ly
Change
Rate
14,205
15,039
834
+5.9
Chain Store
7,639
8,285
647
+8.5
CVS
4,531
4,898
368
+8.1
Retail
6,613
6,542
-72
-1.1
Food Service
4,619
4,835
216
+4.7
418
398
-20
-4.8
5,475
5,354
-121
-2.2
43,499
45,351
1,852
+4.3
Distributor
Others
Total
※The 2005 actuals above are a total of CCWJ, Kinki and
Mikasa’s actual results
■Vending
⇒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.
30
Q4 Sales Volume Achievement Scenario
（000 BAPC）
■Convenience
■Convenience Store
Store
■Vending
■Vending
—Increase
—Increase the
the number
number of
of vending
vending machines
machines
in
the
market
in the market
-- Net
Net increase
increase in
in sales
sales ：： 300,000
300,000 BAPC
BAPC
—New
—New Product：
Product： 368,000
368,000 BAPC
BAPC
—Expand
—Expand VPM
VPM ：： 534,000
534,000 BAPC
BAPC
※ＶＰＭ…Ｖｏｌｕｍｅ Ｐｅｒ Ｍａｃｈｉｎｅ
Chain Store
+647
Convenience
Store
+368
Others
+483
Channel Trend etc.
－480
Sales
Volume
43,499
Sales
Volume
45,351
Vending
+834
■Chain
■Chain Store
Store
—Strengthen
—Strengthen Large
Large PET/500
PET/500 PET：
PET：
480,000
480,000 BAPC
BAPC
9Large
9Large PET
PET Pricing
Pricing Strategy
Strategy
9Carbonated
9Carbonated Beverages
Beverages Promotion
Promotion
9Recover
9Recover Water
Water Selling
Selling Space
Space
—
— Strengthen
Strengthen Georgia
Georgia 167,000
167,000 BAPC
BAPC
2005 Q4 Actual
2006 Q4 Plan
31
［Reference］　32
OTC Market Share（Excl. VM） － CCWH Area
Source：Intage
※The numbers outside the graph
are changes v.s. ly
（%, Point）
100％
Others
D
C
B
A
Coca-Cola
41.8
43.1
44.0
5.8
5.7
8.8
－0.1
＋0.7
－0.5
6.0
5.7
8.9
－0.3
＋0.8
－0.4
5.4
5.6
8.2
－0.1
＋0.3
－0.5
14.7
－1.1
14.5
－0.8
15.1
＋0.2
21.8
－1.1
21.7
－1.1
23.2
Q1
－0.9
Q2
Q3
33
By Brand/By Channel
Volume/Revenues/Gross Profits
2005 3Q
100％
2006 3Q
Others
Hajime/ Marocha
Brand
Sokenbicha
44％
6％
9％
Aquarius
34％
34％
7％
10％
7％
9％
10％
12％
14％
Georgia
26％
28％
9％
12％
12％
Volume
Revenues
Gross Profit
18％
Coca-Cola
2005 3Q
100％
Others
Food Service
12％
10％
16％
Channel
Retail
10％
Convenience Store
23％
14％
4％
16％
10％
Vending
30％
Volume
41％
Revenues
5％
9％
7％
5％
15％
7％
10％
31％
5％
10％
6％
10％
13％
15％
18％
15％
Chain Store
44％
35％
9％
Volume
12％
26％
29％
11％
12％
Revenues
Gross Profit
2006 3Q
12％
10％
14％
10％
24％
12％
4％
17％
10％
5％
3％
15％
8％
10％
17％
58％
56％
44％
30％
Gross Profit
Volume
Revenues
Gross Profit
34
Performance Trend（Consolidated）
（MM JPY）
1996
Revenues
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006 Plan
113,490
115,408
117,991
164,731
207,827
226,111
247,737
240,825
253,248
245,874
333,400
Operating Profits
10,481
10,737
12,533
15,160
17,449
16,634
16,704
19,638
16,860
11,830
12,400
Recurring Profits
11,273
11,054
12,510
15,889
18,516
16,021
17,005
19,895
17,065
12,256
13,300
5,721
5,428
5,872
6,823
5,700
1,420
7,086
9,380
8,564
7,305
7,400
Net Profits
25,000
400,000
7/1/06: Integration
with Kinki CCBC
350,000
7/1/99: Merged
with Sanyo CCBC
300,000
20,000
250,000
200,000
150,000
15,000
Operating Income
10,000
Revenue
100,000
5,000
50,000
0
0
96
97
98
99
00
01
02
03
04
05
06 Plan
（MM JPY）
（MM JPY）
35
Financial Data
＜Operating Profit／OP Ratio＞
＜Net Assets / Equity Ratio＞
10.0
25,000
OP%
20,000
7.4
OP
8.2
6.7
6.7
15,000
10,000
8.0
16,704
19,638
83.2
80.7
6.0
160,000
81.0
82.0
80.6
81.0
173,608
77.5
164,658
155,000
11,830
2.0
5,000
80.0
Net Asset
4.0
16,860
84.0
83.0
Equity Ratio
170,000
165,000
4.8
16,634
175,000
165,454
79.0
78.0
167,036
77.0
157,129
76.0
150,000
75.0
0.0
0
（MM円）
2001
2002
2003
2004
2005
（％）
（MM JPY）
2003
2004
2005
（％）
4.6
4.2
3.5
150.0
133.6
PER
5.2
5.0
4.4
2002
150.0
5.7
4.0
74.0
2001
＜EPS／PER＞
＜ROA／ROE＞
6.0
145,000
4.3
100.0
116.25
108.80
93.42
85.49
100.0
3.5
3.0
2.0
1.0
ROE
50.0
17.62
ROA
0.9
0.7
2001
20.8
18.1
24.2
0.0
0.0
（％）
EPS
2002
2003
2004
2005
（JPY）
29.5
50.0
0.0
2001
2002
2003
2004
2005 （倍）
36
Coca-Cola System in Japan
Investment
（１００％）
The
Coca-Cola
Company
（ TCCC ）
②
Coca-Cola
Tokyo
R&D Center
（ CCTR&D ）
④
Coca-Cola
National
Beverage
( CCNBC ）
⑥
Coca-Cola
Beverage
Service
（ CCBSC )
⑦
（１００％）
Coca-Cola
Japan
（ CCJC ）
③
Coca-Cola
National
Sales
（ CCNSC ）
⑧
FV
Corporation
（ FVC ）
⑤
Coca-Cola
West
Holiding
（ CCWH　①
）
Coca-Cola
Central Japan
（ CCCJ )
Coca-Cola
Bottling
10
（ CCBC ）
⑨
Joint Venture Company by TCCC, CCJC
& Coca-Cola Bottling Co
※CCNBC、 CCNSC、FVC are
equity method investees of CCWH.
37
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.
⑦ Coca-Cola Beverage Services Co., Ltd (CCBSC)
Jointly established in June 1999 by TCCC and CCBCs and
started operation in September 1999. Transferred
procurement operations to CCNBC as of October 2003,
CCBSC currently carries out activities to reform Japan’s
Coca-Cola information system.
⑧ Coca-Cola National Sales Co., Ltd. (CCNSC)
Jointly established in October 1995 by CCBCs and CCJC.
Carries out sales activities for national chain customers.
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.
⑤ Coca-Cola bottlers (CCBCs)
There are 12 bottlers in Japan, which are responsible for
selling Coca-Cola products in the respective territories.
38
Our Group Companies - Principal Business
Our Group Compa ni es
（１）Coca-Cola West Japan (CCWJ)
（２）Kinki Coca-Cola Bottling
Pri nci pa l B us i nes s
Beverage sales
（３）Mikasa Coca-Cola Bottling
（４）CCWJ Products
Beverage sales
Beverage sales
Beverage production
（５）Kinki Coca-Cola Products
Beverage production
（６）Daisen Beverages
（７）CCWJ Logistics
Beverage production (mineral water)
Freight transport-operations
（８）Kansai Logistics
Freight transport-operations
（９）Mikasa Logistics
Freight transport-operations
（10）CCWJ Vending
（11）Nishinihon Beverage
Vending machine operations (Coca-Cola products)
Vending machine sales and servicing
（12）Kansai Beverage Service
Vending machine sales and servicing
（13）Mikasa Beverage Service
（14）Nesco
Vending machine sales and servicing
Vending machine operations
（15）KADIAC
Vending machine operations (in the Kansai Air Port)
（16）CCWJ Customer Service
（17）Mikasa Service
Vending machine-related businesses
Vending machine-related businesses
（18）Nichibei
Manufacture of processed foods
（19）Takamasamune
Production and sales of alcoholic beverages
（20）West Japan Service
（21）Rex Estate
Insurance, leasing, and business machine sales
Real estate business
（22）Seiko Corporate Japan
Maintenance and repair of motor vehicle
（23）C&C
（24）Akiyoshi Systems
Sales and manufacturing of food, Chain restaurant business
Chain restaurant business
39
Glossary
Term
Chann el
・Vending
･Chain store
･Convenience Store
･Retail
･Food Service
・On-Premise
･Distributor
Ve nding
・Regular vending machine
･Full service vending machine
・Out-market vending machine
・In-market vending machine
・VPM
Chain Store
･National chain
･Regional chain
･Local chain
Other
･Sales mix
Description
Retail sale business to distribute products through vending machines to consumers
Wholesale business for supermarket chains
Wholesale business for convenience store chains
Wholesale business for grocery stores, liquor shops, and other over-the-counter outlets
Syrup sale business in the “eating out” market
Syrup and package sales business in the “eating out” market
Middleman who work for Coca-Cola to handle our products in remote areas and islands
A vending machine offered free of charge to a customer who supervises its operation and
uses it to sell products purchased from us.
A vending machine installed and managed directly by us (product supply, collection of
proceeds etc.). Fees are paid to the location proprietors.
An outdoor machine whose users are relatively unspecific
An indoor machine whose users are relatively specific
Sales volume per vending machine
National chain supermarket that CCNSC are responsible for negotiating
Chain supermarket that owns its stores in the two or more bottlers’ territories
Chain supermarket that owns its stores in the single bottler’s territory
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
40
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
41