Full-year 2020
Earnings Presentation
February 12, 2021

Coca-Cola Bottlers Japan Holdings Inc.
Calin Dragan, President
Bjorn Ulgenes, Vice President & Chief Financial Officer(Posted to CCBJH website on February 10, 2021)

Forward-looking statements
The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the managementof 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 materially from 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 inour securities.
CCBJH undertakes no duty to update any statement in light of new information or future events. You should rely on your own independent
examination of us before investing in any securities issued by our company.

2

Coca-Cola Bottlers Japan Holdings Inc. (CCBJH)
Full-year 2020 earnings presentation

Overview and situational analysis
Full-year results and 2021 outlook
Q&A

3

Overview and
Situational Analysis

“Business as usual is not an option”- Our focus areas during uncertain times SAFETY & SECURITY

AGILITY

RESILIENCE

The safety and security of
our consumers, customers,
partners, employees andcommunities are our priority

Agile and flexible businessplanning, ready for the
futureAccelerating transformation
to build a resilient
foundation5

2020 Highlights
Business Income ahead of plan; Building agile & flexible foundation for the future
Business Income ahead ofplan•Flat Business Income despite 100
billion yen revenue decline•Over 35B yen cost savings

100

Revenue
B. Yen contraction

Business
Income200 M. Yen

Over 35B. Yen cost savings

Grow & recover market share

Transformation•Continued momentum on vending
value share growth and recovery
trend in over-the-counter value
share•Vending/sales route transformation
complete. Optimized organization•Progress toward ESG goals; Integral
to business planning & execution

21

Consecutive
monthsVending value

share growth

Q4 OTC
value share growthEven

Winning in the market-20%

Vending service route-10

Annualized
vending fixed% cost savings

Recycled PET & plantbased PET usage ratio

33%

Foundation for future6

2020 Highlights (Continued)
Business Income ahead of plan; Building agile & flexible foundation for the future
Growth initiatives

Supply capacity expansion

Good stewardship of capital•Focus on innovative products &packages to meet new consumer
demand•Exploring white space; Alcohol
business continues to perform well•Strengthen winning presence online•Completion of major manufacturing
capacity recovery and expansion•Solid progress on logistic/distribution
optimization; Saitama Mega DC
operational and ramping up in 2021

•Focus on core business; Divestment
of Q’sai, selling idle assets and crossshare holdings•Strong balance sheet•Stable credit rating

7.9

7new manufacturing lines 15
Aseptic production+20% Selling Q’sai in 2021 45
capacity vs. 2018

Million cases Lemon-dou#1Market share(Lemon sour 350 CAN)

Online channel growth
Over

+30%

Grow where the growth is

B. YenCash-inEnd-to-end
supply chain network

Selling idle assets &cross share holdings
in 2020
B. YenCash-inAA- / Stable outlook
JCR rating

Market share source: Intage SRI, Jan. to Dec. 20207

Focusing on what’s in our control
2020 situation• 100B yen revenue decline vs. PY• Rapid consumer behavior shiftamid COVID-19• Delay and re-plan of marketing
due to postponement of Tokyo
2020 Olympic and Paralympic
Games

Delivering results in a tough year
✓ 2020 Business Income 4B yen better thanplan
✓ Accelerated transformation of cost structure,organization, people, processes and systems✓ More agile planning and execution to
respond in real time to market changes✓ Demonstrated ability to flex cost savings tooffset topline uncertainty

Over 35B yen cost savings in 2020

8

White space expansion – Success in ready-to-drink alcohol
Lemon-dou sales volume reached ~7.9
million cases in 2020, well ahead of plan
Launched dry taste “Kamisori Lemon” inDecember 2020. Now offering 5 SKUs
“Teiban Lemon” won #1 market share in
350ml lemon sour category in 2020

Market share source: Intage SRI, Jan. to Dec. 2020

Each case contains 24 x 350ml can

9Agile and flexible supply infrastructure
Seven new manufacturing lines up and runningsince 2019. 20% additional aseptic production
capacity vs. 2018 to meet consumer demand
Expanding in-house alcohol production capacity as
category continues to growShinsei logistic/distribution optimization project
ongoing; closed 14 sales/distribution centers in
2020; Completion of Saitama Mega DC

CCBJI supply chain footprint

2

lines

2

lines

1

line

1

line

1

line

Alcohol lines:
Kyoto and Saitama

2

lines

Saitama Mega DC and automated picking system
10Full-year 2020 results

Full-year 2020 results vs. 2019

Business Income better than revised plan driven by significant cost savings.
Operating income improved versus prior year, cycling one-time expenses.
Divesting health and skincare business, now treated as discontinued operations.
2020 Actual2020 Revised plan2019 Actual

YoY (%)

Continuing Operations (Beverage Business)

791,956

794,500

890,009-11.0%

Beverage Sales Volume (Million Cases)

458

459

505

-9%

NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases)

450

451

503

-11%

COGS

429,040-

468,785-8.5%

Gross Profit

362,916-

421,224-13.8%

SG&A

359,645-

407,510-11.7%

169(3,600)11,447-98.5%(11,722)(13,300)(58,904)-(4,715)(7,000)(57,952)-

Revenue

Business Income (Loss)
Operating Income (Loss)
Net income (loss) attributable to owners of parent(Total of continuing and discontinued operation)
Unit: Million JPY

Some inconsistencies with the volume data provided in past presentations may
be expected as a result of standardization of volume and revenue calculation.

12

Full-year 2020 Drivers of Business Income
Topline pressure offset by significant cost savings and transformation; Flat Business Income
Volume, Price& Mix*

Commodity

DME

Manufacturing

Others(Direct Marketing
Expense, fixed only)

11.4
Full-year 2019
Business
Income(Continuing
operations)-45.3(Full-year)

0.2

Q3 -14.5• Reduced
marketing spend
during peak
COVID-19 impact• Replan ofmarketingQ2 -18.5

-2.4

+7.3

Q1 -1.9• Vending volume -13%, CVS -11%,
R&F -28%• Lower variable expense (vending
commission, deductions fromrevenue, etc.)• Alcohol contribution+1.5• Cost reduction
thorough efficiency
improvement offset
by lower production
volume, higher
depreciation, etc.

+27.6

Full-year 2020
Business
Income(Continuing
operations)• Reflects costsavings in labor,
IT, T&E, etc. andlower logistics/
distribution

Beverage volume YoY (%)
Q1

Q2

Q3

Q4

2020

-2

-18

-10

-6

-9

*Volume, Price & mix represent marginal profit of our commercial activities including variable costs and deduction from revenue in IFRS.

Unit: B JPY(Rounding off less than unit)

13

Full-year 2020 NARTD beverage performance
Growth in D&D, Online channels; Package mix and case size impacting revenue per case
By channel

Winning where the growth isCapturing bulk purchase demand
Online channel volume growth over 30%
vs. PY
Continue to gain vending value share
Mix & wholesale revenue per case trend
At-home consumption increase
New configuration of bottles per case for
1.5L PET (From 8 to 6 bottles per case) in
Q4 decreased average revenue per case
Retail pricing trend
Observing growth in retail price premium
vs. market in small PET by new products,
continued premium in large PET

Vs. PY1%

19%

Wholesale
Volume revenue
per case

25%

24%

16%

15%

Supermarket (SM)+1%

-54YenDrug & Discounter (D&D)+8%-46YenConvenience Store (CVS)-11%-23YenVending (VM)

-13%

-44YenRetail & Food (R&F)-28%+48YenIncludes Online

NARTD OTC Retail Price
Vs. Market
AverageVs. PY

Small PET

+2.7

-1.3

Large PET (2L PET)

+19.6

-4.9

OTC Retail Price(Jan. to Dec. 2020, JPY per bottle)

NARTD: Non-alcoholic ready-to-drink
Retail price data source: Intage
Note: Volume doesn’t include alcohol. Revenue per case doesn’t include DFR (deduction
from revenue). Some inconsistencies with the volume data provided in past presentations
may be expected as a result of standardization of volume and revenue calculation.

14

Full-year 2020 our NARTD category volume performance
Continued, but moderating impact from COVID-19
Sparkling driven by decline in R&F and VM, partly
By category

6%

Vs. PY

8%
26%

21%
21%
9%
9%

VolumeSparkling-9%

Non-sugar tea (NST)-9%Sports

-12%

Water

-3%

Coffee

-7%

Juice

-24%

offset by Coca-Cola Zero renewal, launch of Fanta
Premier series
NST decline driven by CVS, R&F and VM. Slight decline ingreen tea partially offset by new Ayataka Koi Ryokucha.
Sports impacted by category decline & weak large PET.
Includes contribution of newly-launched 950ml PET
Water decline driven by small PET as immediate
consumption channels declined despite growth of large
PET in SM and D&D
Coffee can & bottle can decline offset growth in PET
packages driven by Georgia Latte Nista and Japan
Craftsman. Bottle can growth in Q4 led by Georgia
European
Juice declined due to sharp drop in R&F demand

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

15

NARTD channel/category/package volume performanceQ4 2020 (Oct. to Dec.) volume: -6%
By channel

Vs. PY

1%

Supermarket (SM)
20%

25%

24%

14%
16%

By package
Wholesale
Volume revenue
per case+8%+11%-90 YenConvenience Store (CVS)-8%-50 Yen-10%

Retail & Food (R&F)
Includes Online-20%

Vs. PY

9%
27%

23%
9%

2%
7%
10%
5%

39%

13%

-23 Yen24%+33 YenQ4 2020

By category
6%

vs PY

-108 Yen

Drug & Discounter (D&D)

Vending (VM)

Full-year 202021%
5%

VolumeSparkling-3%

Non-sugar tea (NST)-5%Sports

-18%

Water

+5%

Coffee

-5%

Juice

-22%

3%
6%
11%
39%

5%
13%

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

23%

Volume

S-PET

-10%

L-PET

+6%

Can

-16%

Bottle Can

-2%

Syrup

-34%

Powder

-28%

vs PY

Volume

S-PET

-6%

L-PET

+13%

Can

-12%

Bottle Can

+5%

Syrup

-25%

Powder-26%

S-PET: PET under 600ml/L-PET: PET above 1.5L

16

Building a foundation for value growth in 2021
Recovery in OTC value share, vending share growth momentum continues
OTC – Back to growth from December• Q4 OTC value share getting back to 2019 levels,
supported by Q4 return to more normalized marketinginvestments; Momentum continues in early 2021

Vending – Share growth momentum continues• 21 consecutive months of value share growth since April
2019, maintain momentum amid COVID-19• Winter portfolio assortment and Coke On promotion
supported value share growth momentum in Q4

OTC Market Share (YoY)

Vending Value Share

Market Share (vs. PY, PP)

Value

VolumeFull-year (Jan. to Dec.)

-0.4

-0.3

Q4 (Oct. to Dec.)

0.0

+0.7

Value

VolumeQ1 2020

Q2 2020

2018

Q3 2020

2019

2020

Q4 2020
Source: Intage

17

Accelerated transformation and mitigating actions deliver over 35B
cost savings in 2020

Over

35B yen
Cost savings in 2020

Transformation• Vending operational model• OTC sales route
Supply chain recovery and expansion, normalizing
logistics and distribution• New aseptic manufacturing lines, Hiroshima plant
Labor• Bonus payment and overtime reduction, early retirement,
paid temporary leave
Marketing• Re-plan product launches, marketing/sales promotion• Minimize price promotions/discounts
Other• Tight controls on travel, entertainment, general backoffice and support functions given COVID-19 restrictions

18

Continued priority on good stewardship of capital
Focus on shareholder value creation and appropriate cash position given macro uncertainty
Shareholder value creation
Balance sheet andcash flow

Dividends- Solid financial position: JCR

2020
No change to reinstated year-end
dividend plan

- 15 billion yen cash-in in 2020 by

2021
Return to stable dividend

2020

rating AA- with stable outlook,
53.4% equity ratio at 2020 end

2021 plan

50 Yen/share

25

InterimYear-end

Yen/share25

25

Yen/share

Yen/shareselling idle assets and cross-heldshares- 45 billion cash-in with 12.5
billion yen pre-tax profit in Q1
2021 by divesting health &skincare business

Capex and depreciation
2020
Capex reduced 26 billion yen
versus plan

2021
Restrained new capex duringongoing COVID-19 uncertainty(Billion JPY)

2020 actual

2021 plan

CAPEX

69.3

45 to 50

Depreciation

59.6

55 to 60

19

Marketing and branding update

Update from Coca-Cola (Japan) Company
2020 Q4 Initiatives Highlight

2021 Q1 Business Plan

21

2020 Q4 Initiatives Highlight:
Georgia“Try Your Luck” Promotion
1.5MM applicantsContributing to Georgia share growth

Coca-Cola Zero Sugar
Full Renewal

Cross Category
Winter Campaign

Achieved new users
and high repeat rate

1.1MM applicants

Coke ON
Buy 1 Get 1 Free Promotion

Lemon-dou 1st Anniversary
Kamisori Lemon Launch

Coca-Cola New Year Countdown fromSpace

Achieved 1MM users

First Dry taste from Lemon-dou
Rocket start

9MM Viewers

22Accelerating Sustainability:
ILOHAS “Green Purchasing Network Award” Grand Prize23

2021 Q1 Business Plan (January)
Coca-Cola“Open to Happiness” Campaign

Georgia x Gundam
Campaign

Aquarius “Mamoru”
Lactobacillus Water

Pop Girls Group NiziU
Support the precious momentsof new normal

Georgia share gain
Hot topic on SNS

10 billion “Shield Lactobacillus”
per bottle
Support health of family

2424

2021 Q1 Business Plan (February to March)
Karada Odayakacha W

Ayataka “Traditional Crafts Donation
Bottle”

Japan’s first everFunctional beverage with double
benefit on memory and bloodpressure

Help support young
craftspeople by donating a
portion of revenue from
Ayataka green tea

Fanta Premier Renewal

Further strengthen the“Premium Sparkling”
positioning for adult consumers

252021 Business Plan:
Continue flexible and timely actions to adapt to changes

FEWER, BIGGERINNOVATIONS

選択と集中

PIVOT TO CORE
コアへの原点回帰

STAY@ HOME
家庭内需要の獲得

26

2021 Direction / Outlook

Strong uncertainties due to resurgence of COVID-19 & 2nd State of Emergency
Traffic movement has declined due to SoE, but better
than 2020

Macro economy• GDP down -5.1% in 2020 andrecuperating +3.1% in 2021
• “After COVID-19” moderate growth

Number of new coronavirus cases (per day)

Source: IMF World Economic Outlook Jan. 2021

Key consumer trends• Health consciousness and hygiene• Digital acceleration• Affordability versus indulgencepolarization

Source: Ministry of Health, Labor and Welfare, Area: All Japan

Traffic in Food channel (% vs. LY)

0
-10

2020
SoE

-20

2021
SoE

-30
-40
-50
-60

SoE: State of Emergency declaration-70

Jan,'20 Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan,'21

Source: unerry, Month: 445 calendar

28

Strong uncertainties in 2021 triggered by 2nd state of emergency
Easingrestrictions

1st SoE

Pre-Crisis

Resurgence

2nd
SoE

CCBJI NARTD volume YoY(Jan. 2020 to Jan. 2021)
1

2

3

4

5

6

7

8

9

10

11

12

1

• Prolonged COVID-19 impact, though gradually improving volume trend through end of 2020
• Continued stabilization was expected in Q1 2021, but declaration of 2nd state of emergency inJanuary has introduced significant uncertainty to outlook. January volume down mid teens• Evaluating multiple scenarios. No full-year guidance provided at this moment
SoE: State of Emergency declaration29

2021 Outlook
Unable to provide 2021 guidance now in light of renewed COVID-19 uncertainties. Focus on what we can control;
Agile & flexible business planning based on multiple scenarios as situation evolves
Product portfolio andinnovation

Commercial Initiatives

Transformation•Innovation and “Big Bet”
product launches•Pivot to core, stay @ home
•Leverage digital•Revenue recovery and value
share growth•Focus on ROI•Capturing “New normal”
consumers’ behavior•Vending operationtransformation•Shinsei logistic/distribution
optimization project•Digitalization/DX

Cost savings & investment

Good stewardship of capital• Recurring cost savings target 7
to 9 billion yen• Reconsidering near term
investment plan; Capex 45 to
50B, depreciation 55 to 60B•Stable dividend: 50 yen per
share annually•Strong balance sheet, cash-in
from divestment

ESG initiatives: Creating
shared value•Progress in sustainable
packaging•Raising diversity & inclusion
target30

Commercial initiatives to drive revenue recovery
Revenue recovery
Value share growth

Focusing more on ROI
Focus on where growth is

Vending

Disciplined investment

Growing channel/categories
Core and big bets products
White space
Expand space to sell

Maximize transaction and quality
placement
New, vending-exclusive products
Coke ON promotion
Profitable column expansion

Selective sales promotion
Equipment placement andnew rack placement
Capabilities anddigitalization

Cost saving through ongoing transformation
Resilience / Agile Foundation
31

Agile adaption to “New normal”
Driving initiatives to capture consumers’ behavior change

Launching label less SKUs andnew package configuration,
growing revenue fromsubscription consumers in
Online channel

Expand 350/700ml PET offeringsin supermarket and drug &discounter channel. Bundle andmulti-pack new launch, 950ml
PET offerings exclusively inconvenience store channel,

Market execution responding
to demand. New rackdevelopment in OTC (overthe-counter) channel outlets

Cross-channel promotion by
Coke ON smartphone app todrive vending traffic,
increasing cashless enabledmachines to drive transaction

32

Ongoing transformation across our supply network
End-to-end transformation; from supply chain to field operations• Transform warehouse operations• Optimize sales centers as new logistic/distribution
infrastructure is up and running• Digitalize planning and field operations• Further accelerating transformation ofvending operations by Mega DC

33

ESG – More important than ever
Steady progress toward WWW (World Without Waste) goals to create shared value
2020 achievement
Usage of recycled PET and plant-based PET: 33%
Launch of iLohas 555ml with 100% recycled PET resin
Selective launch on Ayataka 525ml with plant-based PET
2021 plan
Expand 100% recycled PET bottle offerings

Inclusion in leading market indicesDiversity award from Tokyo Metropolitan Government"Grand Prize" in the industrial category of Tokyo
Metropolitan Government Women's Participation Awards

Action on water source replenishment
Agreement for forest management with Nippon Paperand Marunuma Kogen Resort

Supporting our communities
Donated Coca-Colaproducts to medical
institutions and foodbanks to support
local communities

34

Creating shared value

Updated our CSV goals to raise management diversity and inclusion target

20%

Female managers by 2030

35

2021 Outlook KPIs
Shift from “Resilience” to “Recovery toward Growth”.
Market share

Value share growth todrive revenue recovery

Recurring cost savings

Annual dividends

7 to 950

Bil. Yen

Yen/Share

Recurring cost savings
target throughtransformation

Capex

Depreciation

45 to 50

55 to 60

Bil. Yen

Bil. Yen

Restraint in new capex
during ongoing COVID19 uncertainty

Driven by supply
capacity investment
through end of 2020

Return to stable dividend

Content ofrecycled PET

40%
Expand recycled PET
usage, on track to meet
ambitious 2030 goals*Not including IFRS16 non cash items

36

In closing

Sustainable growth, creating shared value

Win in themarket place

ContinuetransformationGood
stewardship ofcapital37

Q&A

Appendix

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

40

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 & discounter channels,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

41

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