Financial Results Presentation
for the year ended
December 31, 2007
February 8th, 2008
Coca-Cola West Holdings(2579)
URL

Contact
TEL 092-283-5724
http://www.ccwh.co.jp/eng

Corporate Planning Group, IR TeamFAX 092-283-5729
E-mail shigeki-okamoto@ccwh.co.jp

2007 Financial Results1

2007 main initiatives-expansion strategy
Mid-term plan strategy

Ⅰ.Evolution toⅠ.Evolution
to thethe newnew
bottlerbottler byby strategic
strategic
partnershippartnershipstrengthening
strengthening withwithTCCC/CCJC
TCCC/CCJC

Ⅱ.Expansion ofⅡ.Expansionof thethe salessales
andand thethe profit
profit byby thethe““consumerconsumer viewview””
activity
activity exceedingexceedingcompetitors
competitors

2007 main initiatives¾
The cooperation¾The
cooperation systemsystem withwith TCCC/CCJC
TCCC/CCJC has
hasstartedstarted
・・HoldHold periodic-management meeting
periodic top
top-management
meeting・・TheThe office
office ofof marketing
marketing teams
teams isis locatedlocated at
at samesame flourflour⇒
Activation of-Cola⇒Activationof CocaCoca-Cola⇒
Install Emblem
é into⇒InstallEmblem cafcafé
into vending
vending machinemachine⇒Renewal ofé au⇒Renewalof Caf
Café
au laitlait⇒
Develop products⇒Develop
products forfor cupcup vending
vending machinemachine¾Marketing next
¾Marketingnext generation
generation model
model projectproject andand Vending
Vending
next
next generation
generation model
model projectproject have
have been
been establishedestablishedforfor future
future growth
growth¾
Pick up¾Pickup thethe issues
issues fromfrom customer
customer satisfaction
satisfaction survey
survey2

Activation of Coca-Cola(1)＜Growth＞20%

2006

10%0%,32+

308, 0/S
C03 color strategy

2007+16.0％

BlackRed

Silver-7.4％-10%＜Sales volume by flavors(Jan-Dec)＞
構成比（％）Red (Coca-Cola)
Silver (No calorie Coca-Cola)
Black (Coca-Cola Zero)
Total Coca-Cola

Targetage 16-24
age 25+, female
25+, male(thousand,%)

Sales
Change12,059+4.4
2,367-2.2 ※
2,513
16,973+16.0※comparison to “Diet Coca-Cola”

3

Activation of Coca-Cola(2)＜Sales volume by quarter(vs.last year)＞

(%)

2520

No calorie CocaCoca-Cola
Launch 4/215+24.7+17.8
Total CocaCoca-Cola+13.1

105+2.3+3.4

CocaCoca-Cola Zero
Launch 6/4

04Q 2006

1Q 2007

2Q

3Q

4Q

＜Initiative of new campaign “the Coke side of ｌife” with CCJC＞

President of CCJC, Sayre in Fukuoka

4

2007 main initiatives - Efficiency/Capability baseMid-term plan strategy

Ⅲ.Functional
Ⅲ.Functional
strengthening,strengthening,
increaseincrease inin
efficiency
efficiency which
which
harnessed
harnessed
management
management
integration
integration

main activities in 2007¾
Coca-Cola West
¾Coca-Cola
West LogisticsLogistics has
has started
started upup
¾Merger of¾Mergerof twotwo production
production companies
companies¾Capital/business alliance¾Capital/businessalliance withwith Minami
Minami Kyushu
Kyushu CCBC
CCBC
¾Stock transfer¾Stocktransfer ofof Seiko
Seiko Corporation,
Corporation, group
group company
company¾Adjustment of¾Adjustmentof thethe CCWG
CCWG organization
organization systemsystem
・・Subsidiary
Subsidiary companies-Cola businesscompanies ofof Coca
Coca-Colabusiness stopped
stoppedhavinghaving BOD.
BOD.
・・Integration
Integration ofof corporate
corporate officer
officer systemsystem・・Revision
Revision ofof scope
scope ofof authority
authority¾
Increase in¾Increasein efficiency
efficiency ofof production/logistics
production/logistics¾Introduction of¾Introductionof new
new lineline inin CCW
CCW Daisen Products
Ⅳ.Strengthen aa
Ⅳ.Strengthen
capability
capability base
base ofof
talentedtalented associates
associates
andand organizationsorganizations¾
Pick up¾Pickup thethe issues
issues fromfrom customer
customer satisfaction
satisfaction survey
survey¾Integration¾Integration ofof educationeducation tools/program
tools/program5

CCWG Managing system
2006
Subsidiaries：24
2006 July
July ＊＊Subsidiaries：24

2008
2008 February
February

Nishinihon
Nishinihon Beverage
Beverage
ＣＣＷＪ
ＣＣＷＪ Vending
Vending

Coca-Cola business：17⇒14：24⇒20

MikasaMikasa Logistic
Logistic

DaisenDaisen Beverage
Beverage

CCWJ
CCWJ Vending
Vending
CCWJ
CCWJ Customer
Customer ServiceService

Nesco
Nesco
KadiacKadiacMikasaMikasaMikasaMikasaMikasaMikasa Beverage
Beverage ServiceService
MikasaMikasa ServiceService

Stock transfer

Production Logistics

Kinki
Kinki

Rex
Rex estate
estateSeiko
Seiko Corporate
Corporate Japan
JapanC&C
C&C
AkiyoshiAkiyoshi

Nishinihon
Nishinihon Beverage
BeverageKansaiKansai Beverage
Beverage ServiceService

Kinki
Kinki

CCWH

KansaiKansai Beverage
Beverage ServiceService
Nesco
Nesco
KadiacKadiacKinki-Cola Products
Coca
Kinki CocaCoca-Cola
Products
KansaiKansai Logistics
Logistics

MikasaArea Group

CCWH

Total

Kinki Area
Group

ＣＣＷＪ
ＣＣＷＪ Customer
Customer Service
Service
ＣＣＷＪ
ＣＣＷＪ Products
Products
ＣＣＷＪ
ＣＣＷＪ Logistics
Logistics
Nichibei
NichibeiTakamasamune
Takamasamune
West
West Japan
Japan ServiceService08

CCWJ
CCWJ

＜# of companies＞ 06

CCWJ Area
Group

CCWJ
CCWJ

＊Subsidiaries：20＊Subsidiaries：20

MikasaMikasa Beverage
Beverage ServiceServiceMikasa
Mikasa ServiceServiceCCW
CCW Products(mergeProducts(merge twotwo entities)
entities)
CCW
CCW Daisen
Daisen Products
Products
CCW
CCW Logistics(mergeLogistics(merge threethree entities)
entities)
Other-1)((-1)
Other six
six subsidiaries
subsidiaries (-Capital/Businessalliance

MinamiMinami Kyushu
Kyushu CCBC
CCBC6

2007 Highlight - Sales volume(thousand case, %)

2006
2007
vs.planactualplanactualvs.last year※change%change%182,207 186,845 186,237-608-0.3 +4,031+2.2※ The actual is the total of CCWJ, Kinki and Mikasa actual.

＜Sales volume by quarter(vs.last year) ＞(%)

5+3.3+1.7

0+2.3+1.3+1.3-54Q
2006

1Q
2007

2Q

3Q

4Q
7

2007 Highlight - Sales volume by brand
ReviewSales volume by brand(thousand case, %)actual

2007
vs.planchange%vs.last yearchange%Coca-Cola
Co Georgiar Soukenbicha
eAquarius

16,973+829+5.1+2,338+16.0

42,373-884-2.0-292-0.7

15,659+215+1.4+947+6.4

19,417-40-0.2+119+0.6

Priority

13,791+949+7.4+4,142+42.9

Complement

24,957-1,619-6.1-3,459-12.2

Other53,068-58-0.1+235+0.4

186,237-608-0.3+4,031+2.2

Total※ The actual figure is the sum of CCWJ, Kinki and Mikasa.
*Priority brand ： Sprite, Karada Meguricha, Mineral Water,
Minute Maid
*Complement brand ： Hajime, Fanta, Qoo, Koucha Kaden,
Canada Dry, Hung Oolong Tea■Coca-Cole・Strengthen new campaign “the CSOL”
・Improve double digit by developing 3 colorstrategy
・Bumper sales of Coca-Cola Zero■Georgia
・Sales of main flavors were down due to thenegative effect of renewal■Soukenbicha・Sales have been up four consecutive quarters
due to the bumper sales of seasonable flavors■Aquarius
・Exceed the previous year sales due to thebumper sales of blue and launch of Vitamin
Guard＜Priority＞ (vs.last year)
・Sprite：Strengthen by renewal(+104%)
・Minute Maid：Get health-conscious
customers(+42%)
・Karadameguricha：Develop as non-sugar tea brand(+37%)
・Water：Develop two brands(+37%)82007 Highlight - Georgia＜Sales volume by main flavor(full year)＞
構成比（％）
European
Emerald Mountain Blend
Emblem Black
New products
Total Georgia(thousand case, %)

Sales
8,223
6,077
4,737
5,618
42,373

Change-655-298
170
570-292%-7.4-4.7+3.7+11.3-0.7＜Growth by quarter(vs.last year)＞

5+7.0+1.0+1.3+3.4-1.0-10(%)-7.9+0.6

Total Georgia-3.7-4.3-7.3-13.3

Emerald Mountain Blend(renewal:May, 2006)-22.8-25
1Q
2007

2Q

3Q

4Q

European(renewal:July, 2006)

92007 Highlight – Value added products¾ Launch “Ayataka”, premium green tea, as a value added product¾ Sales of green tea category touched bottom in vending channel by launching “Ayataka”, andit gained much more support than “Karadameguricha” in CVS.
＜Sales of green tea category at Vending machine(vs.last year)＞120.0%

Launch “Ayataka”
Ayataka”(10/8)

110.0%

Hajime+Ayataka

100.0%

90.0%

Hajime

80.0%

70.0%
7月

8月

9月

10月

11月

＜Sales volume at CVS(Nov-Dec)＞

61,61012月(cases)49,630Ayataka 425ml PET Karadameguricha 400ml PET102007 Highlight – Sales volume by channel
ReviewSale volume by channel(thousand case, %)2007
actualvs.planchange%vs.last yearchange%Vending

59,002-670-1.1+244+0.4

Chain store

39,369+610+1.6+2,613+7.1

CVS

18,601-397-2.1-231-1.2

Retail25,825-2-0.0-834-3.1

Food service

18,371+124+0.7+1,240+7.2

Other

25,070-274-1.1+1,000+4.2

186,237-608-0.3+4,031+2.2

Total※ The actual figure is the sum of CCWJ, Kinki and Mikasa.
When the influence accompanying CCWJ/NNB enterpriseadjustment(*) is removed,
CCWH Vending (vs.ly): +2.9%
CCWJ Vending (vs.ly): +4.9%*CCWJ/NNB enterprise adjustment :transferred CCWJ’s cup machines to NNB
transferred NNB’s Coca-Cola vending machines to CCWJ
(Sales volume of NNB is accounted in ‘Other’ section)＜Sales volume by area(vs.last year) ＞ (%)
Vending
Chain store

CCWJ-0.2+5.7

Kinki+0.9+9.8

Mikasa+1.9+3.4■Vending・Volume per machine improved at all areas-Concentrate activities on core brands
which account for 60% on total sales invending(core brand sales improve 4.1％)－Expanding ＩＴ-machines■Chain store
・Emphasize the profitability－Expanding the sales of 500PETproducts(+14.6% vs.last year)－Maintain and expand the big bottles ofcore brand mainly
11

Vending – Volume Per Machine(VPM)＜VPM(vs.last year)＞※excluding cup vending machine+2.1％+0.6％+0.2％

CCWJ

Kinki

Mikasa＜VPM by quarter(vs.last year)＞ ※excluding cup vending machine(%)

5+3.5+3.0+2.4+1.70+2.4+0.6+0.2CCWJ+1.2+0.8

Mikasa-1.1-0.7-2.8

Kinki

-51Q

2Q

3Q4Q

12Chain store/Food service - Earnings＜Chain store - Gross profit(vs.last year) ＞＜vs.last year＞
sales volume
market share

CCWJ Kinki Mikasa+5.7 +9.8+3.4-0.2 +0.5+0.2+15.2％

+6.7％
CCWJ

Attainment of growthcouple with interests+12.2％

KinkiMikasa＜Food service - Gross profit(vs.last year)＞＜vs.last year＞
sales volume+7.8％

Attainment of growthcouple with interests

CCWJ Kinki Mikasa+6.8 +7.8 +5.7+8.2％

+4.7％
CCWJ

Kinki

Mikasa13

2007 Highlight － Consolidated P/L(million yen, %)Revenues
COGS
Gross profit
SG&A

Operating income
Non-Operating
incomeNon-Operatingexpenses
Recurring income
Extraodinary
incomeExtraodinary losses
Income before
income taxes,
minority interests
Income taxes
Minority interests
Net income

2006
actual※1
327,821
186,265
141,556
129,235
12,321

409,521234,313
175,208
159,151
16,056

2007
vs.planchange-3,079-1,487-1,592-2,649
1,056

plan
※2
412,600
235,800
176,800
161,800
15,000

%
-0.7
-0.6
-0.9
-1.6
7.0

1,836

2,500

2,433

-66

-2.6

597

32.5

932

1,200

996

-203

-17.0

67

6.9

13,22516,30017,493

1,193

7.3

4,268

32.3

1,569

700

671

-28

-4.1

-898

-57.2

1,686

1,200

3,910

2,710

225.8

2,223

131.8

13,10815,80014,254-1,545

-9.8

1,146

8.7

5,627
-89
7,570

6,386
14
9,400

4,866
12
9,375

-1,519
-1
-24

-23.8
-9.9
-0.3

-760
101
1,804

-13.5
－
23.8

actualvs.last yearchange%81,69924.9
48,04725.8
33,651
23.8
29,916
23.1
3,734
30.3

Impact on
Minami Kyushu
CCBC：
CCBC： +523

※1: 2006 actual figure is the total of CCWJ、KINKI CCBC、MIKASA CCBC actual.
※2: The above plan is based on the performance forecast announced as of August 9, 2007.

＜Ref. ： In case of not reviewing of depreciation method＞
2006
actualOperating income
Recurring income

12,321
13,225(million yen, %)actual15,335
16,792

2007
vs.last yearchange%
3,033
24.6
3,566
27.0

Impact on review ofDepreciation method：
method：+701

14

Full year Gross Profit Change Factors(vs.plan)(billion yen)2007 Gross profit plan

176.8

Increase of sales volume+0.5

Increase by purchasing priceof products+0.8-2.6

Decrease by sale mix
Decrease in profit from toll fee-0.2

Decrease from other groupcompanies-0.1

2007 Gross profit actual

CCWJ

175.2

Sales(+423,000 cases)
Sales mix
subtotal
Kinki
Sales(+146,000 cases)
Sales mix
subtotal
MikasaSales(-67,000 cases)
Sales mix
subtotal
Increase by purchasing price of products
Decrease in profit from toll fee
OtherTotal

Revenues858-1,760-902
252-1,684-1,432-117-316-433-257-54-3,078

COGS
463-40261
138-727-589-68-74-142-805-2615-1,486(million yen)
Gross profit
395-1,358-963
114-957-843-49-242-291
805-231-69-1,592

15Full Year Operating Income Change Factors(vs.plan)(billion yen)2007 Operating income plan

15.0-1.6

Decrease of gross profit+1.2

Decrease of advertising cost

+0.4

Decrease of sales commission+0.4

Decrease of service fee
Decrease of depreciation

+0.3
+0.3

Other cost2007 Operating income actual

16.016

Full Year Gross Profit Change Factors(vs.last year)
2006 Gross profit(billion yen)

141.6
+35.6

Increase for Kinki group sales+2.4

Increase of sales volume
Decrease from purchasing price ofproducts
Change in account classification
Decrease by sales mix

+0.7
-2.7
-1.2

・Impact on rising heavy oil/natural gas ：-0.1

Decrease in profit from toll fee

-0.7
-0.5

Other group companies
2007 Gross profit

Increase for Kinki group sales
CCWJ
Sales(+1,334,000 cases)
Sales mix
subtotal
Kinki
Sales(+1,360,000 cases)(2nd half) Sales mix
subtotal
MikasaSales(+145,000 cases)
Sales mixsubtotal
Purchasing price of products
Change in account classification
Profit from toll fee
Other group companies
Total

175.2
Revenues
80,601
2,713-1,0931,620
2,362-1,565
797
251-114
137
-336
-182
-938
81,699COGS
45,029
1,471
-531
940
1,302-924
378
149
-129
20-705
2,339
505
-459
48,047(million yen)
Gross profit
35,572
1,242-562
680
1,060
-641
419
102
15
117
705
-2,675-687-479
33,65117

Full Year Operating Income Change Factors(vs.last year)(billion yen)2006 Operating income

12.3

Increase of gross profit+33.6

Change in account classification+2.7

Decrease of depreciation cost

+1.0

Decrease of personnel cost
Decrease of sales
equipment cost

Cost reduction which
harnessed management
integration+0.７+0.４

Decrease of advertising cost

+0.４

Impact on reviewing
depreciation method+0.９-34.4

Increase of Kinki group SG&A
Increase of sales commission
Increase of businesssystem cost

Cost involved expansion of sales
Infrastructure development-0.３・Fuel cost：-0.１

-0.９ ・Internal control cost ：-0.２

Other2007 Operating income-0.４

16.018

Ref. Full Year Results – Consolidated P/L
In case of adding ex-Kinki group’s actual(million yen, %)Revenues
COGS
Gross profit
SG&A

Operating income
Non-Operating income
Non-Operating expenses
Recurring income
Extraodinary income
Extraodinary losses
Income before
income taxes,
minority interests
Income taxes
Minority interests
Net income

2006
actual※1
407,914233,529
174,384
161,457
12,9272,232
1,360
13,7991,570
3,624

409,521234,313
175,208
159,151
16,0562,433
996
17,493671
3,910

11,745

14,254

2,509

21.4

4,876
7
6,860

4,866
12
9,375-94
2,514-0.2
58.0
36.7

actual2007
vs.last yearchange%
1,606
0.4
783
0.3
823
0.5-2,305-1.4
3,12824.2
201
9.0-364-26.8
3,694
26.8-899-57.2
2867.9※1 The 2006 actual is adjusted based on a total of ex-CCWJ andex-Kinki CCBC, eliminating inter-company transaction.

＜In case of not reviewing of depreciation method＞

Operating income
Recurring income

2006
actual※1
12,927
13,799actual
15,355
16,792

2007
vs.last yearchange%
2,427
18.8
2,993
21.7

Impact on review ofdepreciation
method: +701
million yen

19

Ref. Full Year Results – Gross Profit Change Factors
In case of adding ex-Kinki group’s actual(billion yen)

174.4

2006 gross profit
Increase of sales volume+3.3

Decrease by purchasing
price of products+0.7

Decrease by sales mix-2.0

Decrease in profit from toll fee

・Impact on rising heavy oil/natural gas price ：-0.1

-0.6

Other
2007 gross profit

CCWJ

Sales(+1,334,000 c/s)
Sales mix
subtotal
Kinki
Sales(+2,550,000 c/s)
Sales mix
subtotal
MikasaSales(+145,000 c/s)
Sales mix
subtotal
Decrease by purchasing price of products
Decrease in profit from toll fee
OtherTotal-0.6

175.2

Revenues
2,713-1,093
1,620
4,429-2,630
1,799
251-114137-494-1,456
1,606

COGS
1,471-531
940
2,440-1,190
1,250
149-12920-705
157-879
783(million yen)
Gross profit
1,242-562
680
1,989-1,440
549
102
15
117
705-651-577
823

20

Ref. Full Year Results – Operating Income Change Factors
In case of adding ex-Kinki group’s actual(billion yen)
2006年 Operating income

12.9+0.8

Increase of gross profit+1.2

Decrease on depreciation cost
Decrease of personnel cost
Impact on reviewing
depreciation method

Cost reduction which
harnessed management
integration+1.1+0.8+0.6

Decrease of advertising cost
Decrease of sales
equipment cost
Increase of sales commission
Increase of businesssystem cost

+0.4

Infrastructure development

・Fuel cost：-0.１

・Internal control cost ：-0.２

Other2007 Operating income-1.0

Cost involved expansion of sales

-0.3
-0.5

16.021

Cost reduction related to CCNBC(compare to year of 2003)＊CCNBC : Coca-Cola National Beverage Co., ltd(billion yen)

Cost reduction has beenrealized in spite of badmarket condition(0.7 billion
yen compare to year 2007)

1.9

2.1

2.2

2004

2005

2006

※The actual of 2004 and 2005 is exexCCWJ’
CCWJ’s actual.

2.92007※The actual of 2006 is exex-CCWJ
actual added exex-Kinki’
Kinki’s actual22

2007 Summery・At the first year of mid-term plan, CCWH has started creating
the company which keeps growing•Initiatives harnessed management integration have proceededsteadily・Financial results have improved steadily－Increase sales volume with profitability－In spite of bad market condition, cost reduction is realized
due to the impact on functional strengthening which
harnessed management integration

23