Coca-Cola Bottlers Japan Holdings Inc.
Second Quarter Year-to-date 2019 Earnings Presentation
August 8, 2019

Calin Dragan, President
Bjorn Ulgenes, Vice President & Chief Financial Officer(Posted to CCBJH website on August 7, 2019)Forward-looking statements
The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the management of Coca-Cola
Bottlers Japan Holdings Inc. (CCBJH or Company) in view of data obtained as of the date this material was released. These forecasts may differ materiallyfrom actual performance due to risks and uncertain factors such as those listed below.
Risks and uncertain factors are not limited to the items listed below. They are also included in our annual securities report, or “Yuka Shoken
Houkokusho”.
• Agreements with The Coca-Cola Company and Coca-Cola (Japan) Company Limited.
• The quality and safety of products• Market competition• Natural environment, such as climate, disaster, water resources, etc.
• Legal environment• Leakage or loss of information• Change of economic conditions, such as personal consumption, currency exchange rates, prices of raw materials, fair value of assets, etc.

• Business integration, streamlining and optimization of business processes, etc.
• Uncertain factors other than those above
The information in this presentation is provided for informational purposes and should not be construed as a solicitation of an investment in our
securities.
CCBJH undertakes no duty to update any statement in light of new information or future events. You should rely on your own independent examinationof us before investing in any securities issued by our company.

2

Coca-Cola Bottlers Japan Holdings Inc. (CCBJH)
Second quarter (Q2) year-to-date 2019 earnings presentation

Q2 YTD 2019 summary and business update
Mid-term strategic business plan overview- Strategic focus areas- Financial targets and framework

Wrap-up
Q&A
3Presentation overview• YTD beverage volume down 4%, reflecting a 7% volume decline in Q2 after the initialrollout in April of the first wholesale price increase in 27 years.

• YTD Business Income trending in-line with the full-year plan announced in May,
reflecting expected quarterly phasing in 2019 as we cycle prior year disruption.
• Announced goodwill impairment charge of 61.9 billion yen resulting from the strategic
business plan evaluation and updated business outlook, full-year forecast revised.
• Interim dividend 25 yen per share as planned, with no change to expected year-end
dividend of 25 yen per share.
• New mid-term business plan “THE ROUTE to 2024” announced, focusing on important
cost savings from transformation and investments for sales growth in order to growvolume and value share, improve profit margins and increase return on equity (ROE).

4

Q2 YTD 2019 summaryand business update

Q2 YTD 2019 results vs. 2018
Business Income trending in-line with revised plan announced in May
Operating loss and net loss include goodwill impairment in Q2
IFRS2019 Q2 YTD

Revenue
Beverage Business Sales Volume (Million Cases)
COGS
Gross Profit
SG&A
Business Income
Operating Income (Loss)Net Income (Loss)
Beverage Business
Revenue
Business Income

2019
Q2 YTD433,710237
223,465
210,246
205,2024,122(65,457)(64,565)

2018
Q2 YTD

YoY

Health Care & Skin
Care Business2018 Q2 YTD

YoY

448,103
247
227,578
220,525
208,213
11,571
12,052
7,740

-3.2%
-4%
-1.8%
-4.7%
-1.4%
-64.4%-

2019
Q2 YTD2018
Q2 YTD

YoY

421,404

433,427-2.8%

Revenue

12,306

14,675-16.1%

2,523

8,732

-71.1%

Business Income

1,600

2,839

-43.7%

Unit: Million JPY
Net Income (loss): Net income (loss) attributable toowners of parent.

6

Q2 YTD 2019 Drivers of business income in IFRSBusiness Income trending in-line with plan; Reflects impact from prior year disruption
Unit: B JPY(Rounded off less than unit)

11.6

Q2 YTD-7.3

2019 Plan

Capex

42.3

99.8

Depreciation

28.1

57.6

-0.1
+2.0
• 1H volume -4%(Q2 volume -7%)
• VM volume -3%
and CVS -5%

Q2 YTD 2018
Business
IncomeVolume,Price & Mix*

Cycling of PY
spending, timingof spend, etc.

DME
(Direct Marketing
Expense, fixed only)

Commodity
pressure

-1.2

+0.3

Lower
manufacturing
efficiencies due toless volume andrecovering supply
networkElevated logistic &distribution
expenses offset
by lower laborcosts, etc.

Manufacturing

Others-1.2
Sales decline
partially offset bycost efficiencies

4.1

Healthcare &SkincareBusiness
IncomeQ2 YTD 2019
Business
Income*Include variable costs related to commercial activities and adjustment for IFRS, etc.

7

Q2 YTD 2019 channel and category volume performance
Volume down 4% vs. PY driven by 7% volume decline in Q2 mainly due to large PET price hike in April as well as vending decline, time lag inrecovering OTC shelf space after last year’s supply constraints, underperformance of newly-launched and renewed products
By channel, Supermarket and Drug & Discounter volume declines reflect the initial price hike impact, but with improved wholesale revenue per case.
Convenience Stores impacted by weak performance of new launches and renewed products. Vending declined, but expanding coverage of Georgia
Japan Craftsman and “one-coin” offerings to attract more consumers have helped to moderate recent volume trends.
By category, Sparkling declined due to weak performance of Coca-Cola Peach, etc. product renewals as well as the wholesale price increase. Nonsugar tea and sports largely driven by large PET decline after the price hike, with growth in small PET volume and FOSHU Ayataka. Coffee impacted by
weakness in bottle can packaging, partially offset by expanded coverage of Georgia Japan Craftsman across all channels. Water impacted by weak
performance of iLohas brand flavored water as we cycled prior year launches, and pull back of large PET Morinomizu brand.
By channel
Others
1%

R&F
23%

VM
25%

SM
23%
D&D
13%
CVS
15%

Vs. PY

VolumeRevenue percase (Yen)Supermarket (SM)

-8%

+61

Drug & Discounter (D&D)

-6%

+56

Convenience Store (CVS)

-5%

+18

Vending (VM)

-3%

-30

Retail & Food (R&F)

Even

-7

By category
Juice
7%

Others10%

Vs. PY
Sparkling26%

Coffee21%
Non-sugar
tea
20%
Water
8% Sports
8%

VolumeSparkling-7%

Non-sugar tea-4%

Sports

-2%

Water

-15%

Coffee

-2%

Juice

-1%

Note: Sales volume doesn’t include alcohol. Revenue per case doesn’t include DFR (deduction from revenue) Some inconsistencies
with the data provided in past presentations may be expected as a result of standardization of volume and revenue calculation.

8

Update on large PET price increase
Improving gross profit margin in SM and D&D channels; Impact to volume as expected
We successfully initiated first NARTD beverage price increase in 27
years, with better price mix and gross margin for large PET
products.
Sales of large PET products declined in the Supermarket and Drug
& Discounter channels after initial our price increase in April, but
in line with expectations.

OTC Market Share
Market Share (vs. PY, PP)

Value

Volume

Q2

-1.2

-2.0

Q2 YTD

-1.1

-1.7

Value

Supermarket

Drug &
Discounter

Volume-13%-10%

Revenue per case (yen)

+113

+87

Q2 YoYLPET Volume

Q3 2018 Q4 2018 Q1 2019 Q2 2019

OTC Retail Price

Vs. Market
AverageVs. PY

Small PET

+2.5

-0.7

Large PET (2L PET)

+23.9

+8.2

OTC Retail Price
-26%

-18%

Volume(Jan. to Jun., JPY per bottle)

Source: Intage SRI

9Rest of the year outlook• July sales volume impacted bylonger rainy season• Expect positive cycling of the
disruptions of 2H last year
• Year-end dividend forecast
remains unchanged (JPY25/share)• One-time, non-cash goodwill
impairment will impact full-year
forecast

New launches & campaigns
Coca-Cola Energy
launched in July
• Good coverage & sales
turns thus far

Coca-Cola summer
campaign

Labels change color when ice-cold!

10Revised full-year 2019 forecast (Announced August 7)
One-time, non-cash charge for goodwill impairment; No change to Business Income
IFRS

2019 Forecast

Beverage Volume YoY

2018 Actual

Variance-1%-2%

Revenue

923,300

927,307-0.4%

Business Income

15,40023,276-33.8%

Operating Income (Loss)(53,100)

14,682-Net Income (Loss)(56,700)

10,117-(315.26Yen)

52.68 Yen-

EPS
Beverage Business2019
Forecast

2018
ActualRevenue

895,900

899,863-0.4%

Revenue

27,40027,444-0.2%

Business Income

10,00017,939-44.3%

Business Income

5,400

5,337

+1.2%

Variance

Health Care & Skin
Care Business2019
Forecast

2018
ActualVariance

Unit: Million JPY, except for EPS
Net Income: Net income attributable to owners of parent

11Mid-term strategic
business plan
overview

A call to action to modernize and lead
We face challenges acrossgrowth, cost and capabilities• Growth: Sales volume and revenue
declines, reflecting both internal andmarket-driven challenges.
• Cost: Labor and input cost inflation andgrowing investment needs are puttingpressure on profitability.
• Capabilities: Complexity and lack ofagility in organizational capabilities.
Digital still underdeveloped.

Do the right thing
for the long-term,
while getting the
day-to-day right13

Cost improvements & revenue initiatives have partially offset
negative trends, but not enoughSigns ofpositive
toplinetractionFirst priceincrease in 27
years
successfullycompleted forlarge PET

Lemondou
Chu-Hi (alcohol)
launch in Kyushu
showing
promisingresults

Vending declines
are moderating,but market
negative channel
mix trends
continue

Cost
restructuring
in action

12B of 25Bsynergies inoriginal
strategic plan
captured

ERP system
CokeOne+ inplace. Central
data, “Onesource of truth”

950 employees
participated involuntary
retirement
program14

We have significantly underdelivered on our targets“Business as usual” is not an option
2020 target (2017 plan)• OI: 65 B yen (JGAAP)• Margin: 6%• ROE: 6%• Synergy: 25 B yen
2019 revised forecast (8/7)• BI: 15.4B yen (IFRS)• Margin: 1.7%
• ROE: -10%
• Synergy: 12 B yen

Goodwill
Impairment
Announced 61.9 billion yen
one-time, non-cash charge
as a result of impairment
testing from the mid-termplan process

through 201815

Returning to a growth trajectory requires fundamental change
2023-24
Further growth to become bestin-class in JapanTHE ROUTE to 2024

2017-2019
Integration

Combining and standardizing
company, subsidiaries, systems,
processes
Delivering integration synergies

2020-2022
Reset and transform
Transforming cost structure& culture
Ignite front-facing
investments for growth

Accelerate growth withappropriate incremental
investment

Leading bottler in innovationand operations
Expand revenue base

Growth from commercial
transformation

Cost efficiency &upfront investment
16

“The case for change”; Guiding principles of strategic business plan
• “Business as usual” is not an option. We must fully transform• Improved role-sort and accountability between CCBJH and The Coca-Cola
Company. Aligned Coca-Cola System commitment to investing for growth.
Focus on accountability.
• Fundamental process, system and structural transformation required to drive
cost savings and become lowest cost operator• Must re-engineer vending value chain for growth• Optimized salesforce structure to expand space to sell and improve frontline
capabilities• ESG/CSV (Creating Shared Value) goals integrated in the plan
• Consistent financial framework for creating shareholder value

17

Strategic focus areas

Strategic focus areas to fully transform our business for growthPreferred beverage supplier for all Consumers, Customers & Occasions
Winning in focus areas by building a strong and lasting operating model
Product

Enhance portfolio edge in current & new categories led by The Coca-Cola Company

GrowthInfrastructure& cost savings

Enablers

Transform
vending

Customerengagement,
expand selling
opportunities

Cost efficiencies to fuel investment for growthCommercial
transformation

Supply chain &manufacturing
efficiencies

Capability, performance culture & accountability

Back office
functions
optimization

Create Shared Value,
ESG goals

19Growth: Enhancing the portfolio edge
• Win big in Core categories: focused launch and “teiban-ization”
Strategy

efforts for big bets / profitable new SKUs to increase per-SKU sales• Channel specific pack-price initiatives for core categories• Entering white spaces– Evaluating Lemondo chu-hi (alcopop) expansion– Expansion of Energy, high value-added offerings

Enablers• Closer and faster System co-working model for big bets
• Expansion of pack/price segmentation initiatives via joint System
working model• System joint “Agile Team” working model to accelerate innovationand new category entry.

– Creation of Emerging Growth Platform (EGP) organization at CCJC

20

Growth: Innovation Edge, leveraging the core portfolio
The world is made up of
someone’s work

ILOHAS turns
Plain Goodness into
Fun Goodness

Coca-Cola uplifts
people to unite andbridge divides

Ayataka offers thepleasure of green tea
experience brewed fromthe teapot

Aquarius inspires
everyone to enjoy sports

21

Growth: Customer and channel-specific initiatives
Convenience Store
Customer-exclusive products

Vending
Vending-exclusive products

Exceeded 15MM Downloads~330K Coke ON enabled VM
New functions such as
Coke ON Pay
1,800 installed

Supermarket

OnlineExpansion incustomer sites

Strengthen portfolio(FOSHU/FFC)

Loyalty via
Coke ON22

Growth: Entering White Spaces (New categories)
Alcopop category: Lemon-Dou launch

Energy Boost Category: Coca-Cola Energy“TEIBAN Lemon” achieved
No 1 value share in 2018
In Kyushu area
Source: Intage, 2018/5/28-12/30, KYUSHU, 350ml can chuhi

Coca-Cola Share in Energy: +4.9pts vs LY
Value Share/SOV/Trial Source：Intage SCI, Energy Market 2019 July 1-28
Awareness source: CCJC

23

Growth and Cost Savings: End-to-end vending transformation
Comprehensive reset to stabilize & grow vending business
GrowthCost savings

Deliver sustainable growth in vending

Reengineer vending value chain

Horizontal growth: Increase # of columns- Install high sales-potential locations- Alliance with other manufactures & third-party ops
Vertical growth: Improve volume per machine- Optimize portfolio with retailer approach- Selective pricing interventions to increase attractiveness- Expand cashless and Coke On to drive customer traffic andloyalty-

Improve utilization of fixed assets (trucks,
warehouses) by transforming filling operations- Redesign vending RTM, order generation, filling- Centralize and digitize from planning to execution- Pre-seller/pre-picking initiatives- Manage returns on service trucks- Optimize cost of vending equipment and rationalize
service cost

Enablers:• Joint Japan Coca-Cola System commitment to grow Vending / One Vending team
• Build front-line capabilities and improve productivity of our salesforce• Use digital to improve productivity and improve customer experience in the core “owned retail” channel (e.g. CokeON Pay)
RTM: Route-to-market

24

Growth and cost savings: Strengthen customer engagement
Capture growth potential in OTC channels and expand selling opportunities
Customer Activation & Portfolio Execution

Customer Partnership• Optimized salesforce structure to expand
space to sell and improve frontline
capabilities.

• Multi-functional teams serving National
Customers• Step up investments in new selling spaces,
extra racks, activation in stores• New package size and price points tocapture consumer demand, throughOccasion, Brand, Package, Price, Channel(OBPPC) segmentation• Evolve price (wholesale price), terms andconditions. Reinvest for growth• Tailored portfolio for convenience store /online channels• Invest into new capabilities for growth –Consumer/shopper insights, digital,
category management

25

Infrastructure to lead transformation and cost savings
Lean, streamlined and optimized operation
Supply Chain & Manufacturing

Back Office• Deliver current project Shinsei logistics
network plan, expanding automation anddigitization. Additional savings to offset
expected higher costs• Centralized control and optimization of
total direct & indirect procurement
processes and spend• Vending service model integrated into one
efficient and sustainable operating model• Maximize utilization of high-speed andefficient production capacity to become
lowest cost operator• Leverage technology and big data to
optimize supply chain planning• Expand and leverage shared service
organization (BSO) by consolidatingtransactional processes into cost-efficient
centers of excellence• Digitalize operations through effective useof CokeOne+ ERP and Robotic Process
Automation (RPA)

26

Enablers: Foundation to lead transformation and drive growth
Need to address both the “hardware” and the “software” of CCBJH
3 elements oforganizational “software”

Capabilities, performance culture
and accountability• Building a disciplined performance
culture, reinforcing accountability• Organize for change, but guarding
against “transformation fatigue”• Training: English, digital skills,
leadership, managing scale &complexity• Monitor organizational health via
employee survey and benchmarking

How to source anddevelop talented
employees andretain them in thecompany

People's mindset,
behaviors.
Organization’s
ability to align,
execute andrenew sustainably

Organizational
skills embeddedin the people,
processes andsystems acrossleaders andfunctions27THE ROUTE to Shared Value
Integrated strategic plan includes ESG goals and vision for a World Without Waste

CSV Goals
Water

Products
100%: Zero/low-calorie options for core brands
300%: FOSHU/functional product growth
100%: Front-of-pack calorie label &straightforward nutritional information
100%: Observation of The Coca-Cola Company
Responsible Marketing Policy※Baseline 2015, target year 2025 unless otherwise stated

200%: Water source replenishment.
Focus on watersheds near our plants
30% by 2030: Water usage reduction

Climate Change
25% by 2030: Reduction in greenhouse gas emissions
Promotion of renewable energy

28THE ROUTE to Shared Value
Integrated strategic plan includes ESG goals and vision for a World Without Waste
World Without Waste
Collect

Design

New Environmental Targets
Toward Acceleration of Recycling

Procurement

50% by 2022:
Content of recycled PET in PET bottles
90% by 2030:
100% by 2030: Sustainable PET without fossil fuel use
100% by 2025: Adopt recyclable packaging
35% by 2030: Further light-weighting of PET packaging

Diversity & Inclusion

100%: Sustainable sourcing

100% by 2030: Collection % against
sales volumePartner
By 2030: Extensive partnerships
across industry and environmentalorganizations

Society

6%: Ratio of female managers

Human Rights
100%: Adherence to Supplier Guiding Principles
across the CCBJH Group value chain

10%: Employee volunteers
1 million: Participants incommunity programs
29※Baseline 2015, target year 2025 unless otherwise statedFinancial targets
and frameworkReset and transform to become best-in-class in Japan
Business income growth driven by cost savings & investment for growth
Unit: B JPY

BI margin
5~6%
BI margin
3~4%

49.0

BI margin
1.7%

Transforming cost structure& culture
Ignite front-facing
investments for growth

33.1

Accelerate growth withappropriate incremental
investment

15.4

2019
Plan

2019-2024 plan

Leading bottler in innovationand operations
2022
Target2024
Target31

Key metrics and picture of success by 2024
2024 Target

Revenue

Expand selling space, OTC growth while
vending decline moderated

Revenue +0.5~1% CAGR
Volume +1~1.5% CAGR

Volume & Value Share

Volume and value share growth. Volume
share growth may be ahead in initial
phase of transformation

Value share growthBusiness Income Margin

Improving back to trajectory anticipated in
our initial midterm plan

5~6%

Earnings per Share (EPS)

Improving profitability through reset &transformation and growing bottom line
profitNormalized EPS: 3x+

Return on Equity (ROE)

Optimized and efficient balance sheet
while improving profitability

5~6%

Shareholder Return

Prioritize stable dividend duringtransformation period. Consider share
repurchases, etc. when appropriate

Long-term, 30%+ payout
ratio, but stable in mid-term(EPS excluding non-recurring impact)*Base for growth target: 2019 current forecast

32Midterm plan drivers of business income
Business Income growth driven by cost savings & investment for growth
0.6

Unit: B JPY

49.0(Rounded off less than unit)

35B cost saving opportunities including
ongoing initiatives from initial mid-term plan

+35

-6
+12

-8
15.4
2019
Business
Income plan

Volume,Price & Mix

DME

Cost inflation(Direct Marketing
Expense, fixed only)（Labor, transport,
commodities, etc.)

Cost savings,
investment
for growth,etc.

Healthcare &SkincareBusiness
Income2024
Business
IncomeTarget33

Drive cost savings through resetting and transformation~35B yen cost saving till 2024
Area

Contribution

Initiatives~40%• End-to-end vending transformation• OTC Route-to-Market transformation• Vending equipment maintenance & procurement• Digital to improve productivity and customer experience

Supply chain &procurement~40%• Shinsei logistic/distribution optimization• Manufacturing effeicency from new line investment• Leverage digital/IT across supply chain network• Package light weighting, aligning with our CSV goals• Saving from standardized/optimized procurement

Back office & IT

~20%

• Expand shared service organization (BSO) with standardized,
digitalized and automated back office operations

Commercial

Cost savings includes remaining originally identified synergies from initial midterm plan announced on June 2017

RTM: Route-to-market

34

Financial framework
Continue efforts to build efficient capital structure and improve ROE
Context

Guiding principles• Growth plan requires
additional financing due tooperations and investments

1▪ Investment for growth• 2020-2024 Cumulative capex ~350B• Planning 2019 bond issuance• Impairment of goodwill• Current credit rating at A+/AA-

2▪ Increase of leverage while
maintaining an acceptable
credit rating

TargetROE

5-6%
by 2024

3▪ Create shareholder value▪
▪

Stable dividend over transformation period
Consider share repurchases as appropriate

Optimize capital structure to maximize Shareholder returns
35Key takeaways

Reasons to believe
Tackling chronic problems. “Business as usual” is not an option. Reset andtransform by 2022 for further growth toward 2024
End-to-end transformation of vending to stabilize and recover this importantsales channel
Investing in and leveraging enablers – Supply Chain, Capabilities
Clear financial targets and framework for shareholder value creation
Already working in new ways across the Coca-Cola system. Focus on execution
with clear accountability
Rigorous performance tracking and execution management

Do the right thing for the long-term,
while getting the day-to-day right
37

Q&A

Appendix

Q2 2019 channel and category volume performanceQ2 2019 Volume: -7%
By channel

By category

Others
1%

R&F
23%

VM
25%

Vs. PY
SM
23%

D&D
13%
CVS
15%

VolumeRevenue
per case(Yen)

Supermarket (SM)

-13%

+113

Drug & Discounter (D&D)

-10%

+87

Convenience Store (CVS)

-8%

+31

Vending (VM)

-2%

-35

Retail & Food (R&F)

-1%

-9

Juice
7%

Others9%

Vs. PY
Sparkling26%

Coffee20%
Non-sugar
tea
20%
Water
8% Sports
10%

VolumeSparkling-9%

Non-sugar tea-10%

Sports

-2%

Water

-16%

Coffee

-3%

Juice

-3%

Note: Sales volume doesn’t include alcohol. Revenue per case doesn’t include DFR (deduction from revenue) Some inconsistencies
with the data provided in past presentations may be expected as a result of standardization of volume and revenue calculation.

40

Volume by package
Q2 YTD 2019
Volume: -4%
Powder3%

Q2 2019
Volume: -7%

Others
7%

Syrup
13%

S-PET
38%

Bottle Can
5%
Can
14%

L-PET
20%

vs PY

Volume

S-PET

Even

L-PET

-13%

Can

-2%

Bottle Can

-17%

Syrup

-1%

Powder+7%

Powder
3%

Others
7%

Syrup
13%

S-PET
40%

Bottle Can
4%
Can
14%

L-PET
19%

vs PY

Volume

S-PET

+1%

L-PET

-22%

Can

-3%

Bottle Can

-15%

Syrup

Even

Powder+9%

S-PET：PET under 600ml
L-PET：PET above 1.5L
Note: Sales volume doesn’t include alcohol. Some inconsistencies with the data provided in past presentations may be expected as a result of standardization of volume and revenue calculation.

41

We are part of the global Coca-Cola system
An enduring and effective partnership

Coca-Cola (Japan) Company
•
•
•
•
•

BrandsInnovation
Global perspective
Consumer focus
Superior insight

•
•
•
•
•
•

Customer focus
Local expertise
Best-in-class execution
Finished goods production
Logistics and distribution
Cost optimization

42

Glossary of key terms
Business
IncomeA measure of our underlying or recurring business performance after the adoption of IFRS. Business Income deducts cost of goods and SG&A from revenue, andincludes other income and expenses which we believe are recurring in nature.

DME

Abbreviation of Direct Marketing Expenses. Sales promotion-related expenses, including advertisement, rebates, sales commissions, etc.

FC

Abbreviation of Future Consumption. Purchase or sell beverage for future consumption in home, etc. It also means the products / SKUs for FC (for example, single
packages 1L or more and multi-pack of IC packages) and channels that consumers purchase the beverages for FC. (for example, supermarket, drug & discounterchannels, etc.).

HORECA

Abbreviation of Hotel, Restaurants and Cafeteria. Generally means sales channels of these kinds.

IC

Abbreviation of Immediate Consumption. Purchase or sell beverage for consuming it immediately. It also means the products / SKUs for IC (for example, single
packages less than 1L as well as fountain) and channels that consumers purchase the beverages for IC (for example, vending machines, convenience store channel, etc.).

PTC

Abbreviation of Price, Terms and Conditions, an internal guideline for setting appropriate transaction conditions with customers, frequently used in conjunction with
RGM.

RGM

Abbreviation of Revenue Growth Management, an overall strategy and process to achieve profitable revenue growth.

RTM

Abbreviation of Route-to-Market. A framework, a process, a philosophy, a proven approach for driving profitable growth.

Channel definitions

Vending

Retail sales to consumers through vending machineSupermarket

Wholesale to supermarket chains customers

Drugstore & Discounter

Wholesale to drugstore and discounter chains customers

Convenience Store

Wholesale to convenience store chains customers

Retail & Food

Wholesale to grocery store, liquor store, eating & drinking establishments (HORECA),
online sales channels customers, etc.

OthersWholesale to customers other than above

43

THANK YOU
Investor Relations
Coca-Cola Bottlers Japan Holdings Inc.
ir@ccbji.co.jp
https://en.ccbj-holdings.com/ir/
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