Financial Results Presentation
for the year ended
December 31, 2006
February 14th, 2007
Coca-Cola West Holdings（2579）
Contact
TEL 81-(0)92-283-5718
URL http://www.ccwh.co.jp/

PR・IR Group
FAX +81-(0)92-283-5729
E-mail masahiro-takase@ccwh.co.jp

Contents
I. 2006 Financial Results
1．4Q highlight
2．Full year highlight

II. 2007 Annual Business Plan
1．2007-2009 three year business plan
2．2007 market outlook and sales volume plan
3．2007 financial plan

[Reference]・Market share (OTC channel)
・By brand sales volume / revenues / GP composition
・By channel sales volume / revenues / GP composition
・Group company overview
・Financial data
・Group structure
・Group company profile
・Coca-Cola system in Japan・Explanation of terminology

4．2007 annual business plan
5．2007 sales volume achieving scenario
6．2007 channel strategy
7．2007 brand strategy
8．2007 capital investment plan1

I. 2006 Financial Results

2

4Q Highlight (Oct-Dec)– Sales Volume¾Sales Volume ： vs. Plan –2.8%, vs. LY +1.3%
2005 4Q
Actual※1
43,499

Sales VolumePlan※245,351

Actual
44,061（thousand cases ）2006 4Q
vs. Plan
Change % change-1290

vs. LY
Change % change

-2.8

562

+1.3

※1 : 2005 4Q Actual figure is the total of CCWJ、Kinki CCBC、Mikasa CCBC 2005 actual.
※2 : The above plan is based on the performance forecast announced as of Aug. 8, 2006.

＜Sales Volume by quarter （vs. Last Year)＞
5

1.3
0

-0.7
-4.6

-4.0

-5
(%)

1Q

2Q

3Q

4Q

※ Sales volumes of 1Q and 2Q are the sum of CCWJ、Kinki CCBC and Mikasa CCBC actuals.

3

4Q Highlight (Oct-Dec) – Brand Strategy
4Q Activity Points¾Recapturing and strengthening
key brands■Coca-Cola

Actual Sales Volume By Brand
Coca-Cola : Sales of Diet Coca-Cola expand,exceeded the last year
Soukenbicha : Keep good condition, 500PET fit
bottle is especially good.

⇒Continued expansion of Diet Coke
⇒Expanding sales by creating a Christmas theme at
the outlets.

Aquarius : Blue and freestyle keep good condition■Georgia

Karada Meguricha : Good sales are maintained⇒Recapturing and strengthening during peak

Fanta : Sales rose by launch of seasonal flavors(+24.8%)

seasons

Hajime : Sales fellMorino Mizu : Sales rose from expansion of market■Aquarius⇒Continued expansion of favorable sales byintroducing a sub flavor, “Vitamin Guard”⇒Implementation in testing hot drinks■Non-Sugar Tea⇒Continued coverage of “Karada Meguricha” as wellas implementing new promotions⇒Implementation of hot drinks(thousand cases)

Coke
Georgia

Actual2006 4Q
vs. Plan
Change% chvs. LY
Change

% ch

3,202

-135

- 4.0

+71

+2.3

11,560-1,068

- 8.5

-345

- 2.9

Sokenbicha
Aquarius

3,322

+111

+3.4

+389

+13.3

3,271

-376

- 10.3+218+7.1

HajimeMorino Mizu

1,943

-419

- 17.7-280- 12.6

1,504

+112

+8.0

+211

+16.3

OthersTotal

19,259

+485

+2.6

+298

+1.6

44,061-1,290

- 2.8

+562

+1.3

4

4Q Highlight (Oct-Dec) – Georgia¾ The flagship products which occupy about 60% of Georgia sales expanded steadily after renewal.
¾ On the other hand, new products suffered downturn compared with the previous year.
< 4Q Sales volume by flavor (% change vs. 2005) >% Change
Tasty

+19.7

Emblem black+16.1

European+14.0

Emerald Mountain blend+6.9

New products-19.9

Georgia total-2.9< Sales volume of flagship products (% change vs. 2005)
20
15
10
5
0
-5
-10
-15
-20

(%)

+19.7
+14.0
+9.5

7/10 renewal

+4.4

-2.5

-14.0

1Q

2Q
5/8 renewal

+16.1
+14.0
+6.9

-0.1
-1.0
-6.2
-15.1

-0.6

-17.1
-18.8

10/2 renewal

3Q
8/28 renewal

Tasty
EmblemEuropean
Emerald

4Q

5

4Q Highlight (Oct-Dec) – Channel Strategy
4Q Activity Points■Vending

Actual Sales Volume By Channel
Vending : Georgia which occupies many of vending
machine columns suffered downturn,⇒Optimizing the vending machine column…Smooth transition from autumn to winterproducts…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 throughwinter CSD Large PET promotions⇒Sales recovery of mineral water⇒Continued strengthening of category
management■On-Premise⇒Investigating in capturing the market throughestablishing a new business model.

but sales volume of vending channel
was flat because sales of other brands
expanded.
Chain store : Expanded sales volume by executionof channel strategies
CVS/Food service : Exceeded the last year

（thousand cases）

Actual2006 4Q
vs. plan
Change% chvs. last year
Change% chVending

14,145

-894

-5.9

-20

-0.1

Chain Store

8,068

-217

-2.6

+428

+5.6

CVS

4,734

-165

-3.4

+206

+4.6

Retail

6,326

-215

-3.3

-350

-5.2

Food Service

4,750

-84

-1.7

+132

+2.9

Distributor

404

+6

+1.6

-14

-3.3

5,634

+280

+5.2

+179

+3.3

44,061-1,290

-2.8

+562

+1.3

OthersTotal

6

4Q Highlight (Oct-Dec) – Consolidated P&L¾Revenue: vs. Plan 3,568 MM JPY decline（‐3.5%）、vs. LY 41,073 MM JPY increase（＋70.1%）¾Operating Income: vs. Plan 113 MM JPY increase（‐3.1%）、vs. LY 1,689 MM JPY increase（＋94.1%)（million yen）

2005 4Q
Actuals ※1
Revenues
Operating Income
Recurring Income
Net Income

58,557
1,796
1,999
2,168

Plan

Actual2006 4Q
vs. Plan
Change% ch99,631
3,486
3,851
2,385

-3,568
-113
-48
185

※2
103,200
3,600
3,900
2,200

-3.5
-3.1
-1.2
8.4

vs. LY
Change% ch41,073
1,689
1,581
216

70.1
94.1
92.6
10.0

※1 : 2005 4Q Actual figure is the total of CCWJ、Kinki CCBC、Mikasa CCBC 2005 actual.
※2 : The above plan is based on the performance forecast announced as of Aug. 8, 2006.

■ Reference ：In the case of adding ex-KINKI group’s actual（million yen）

2005 4Q
Actual ※
Revenues
Operating Income
Recurring Income
Net Income

100,900
2,700
2,800
2,800

2006 4Q
vs. LY
ActualChange% ch99,631-1,268
-1.3
3,486
786
29.1
3,851
1,051
37.6
2,385
414
-14.8

※The above 2005 4Q Actual is adjusted based on a total of ex-CCWJ and ex- Kinki CCBC,
eliminating inter-company transaction.

7

4Q Consolidated Profit Changes Factors (vs.Plan)＜Gross Profit＞(100 million yen)2006 4Q Gross profit plan444

Vs. plan : -1,300 million yen

Impact from sales companies (*)
Sales volume decrease
Impact from sales companies (*)
Decrease by sales mix-4Increase ofothers+2-11* Main factors for profit decrease
Impact from sales companies(*)
Sales volume decrease- 1,100 million yen
Sales mix - 400 million yen

431

2006 4Q Gross profit actual* Sales companise are CCWJ, KINKI CCBC, and MIKASA CCBC.

400＜Operating Income＞(100 million yen)2006 4Q Operating income plan36

Decrease of gross profit
Increase in personnel cost

-9

Decrease in advertising cost
Decrease in sales commission
Decrease of depreciation cost
Decrease of others
2006 4Q Operating income actual

35
0

10

20

Vs. plan : -100 million yen* Main factors for decrease
Decrease of gross profit-13-1,300 million yen
Increase of personnel cost-900 million yen+10* Main factors for increase
Decrease of advertising cost+5
-1 billion yen+3
Decrease of sales commission
500 million yen+3
Decrease of depreciation cost
300 million yen
30

40

8

4Q Consolidated Profit Changes Factors (vs.LY)＜Gross Profit＞(100 million yen)255

2005 4Q Gross profit+192

Increase for the Kinki group sales
Increase of sales volume+3

Change in account classification-12

Decrease by sales mix

-4

Other

-3

2006 4Q Gross profit

431

Vs. last year : +17,600 million yen* Main factors for increase
Increase of Kinki group
19,200 million yen
Increase of sales volume
300 million yen* Main factors for decrease
Change in account classification- 1,200 million yen
Sales mix
- 400 million yen

200＜Operating Income＞(100 million yen)

18

2005 4Q Operating income+176

Increase of gross profit+12

Change in account classification
Decrease of advertising cost+2

Decrease of rental expense

+2

Other

+2
-174

Increase of Kinki group SG&A

-3

Increase in personnel cost

35

2006 4Q Operating income0

Vs. last year : +1,700 million yen* Main factors for increase
Increase of gross profit
17,600 million yen
Change in account classification
1,200 million yen
Decrease in advertising cost
200 million yen
Decrease of rental expense
200 million yen* Main factors for decrease
Kinki group SG&A
-17,400 million yen
Increase in personnel cost-300 million yen

9Full Year Highlight - Consolidated P&L¾Revenue: vs. Plan 5,578 MM JPY decline（‐1.7%）、vs. LY 81,946 MM JPY increase（＋33.3%）¾Operating Income: vs. Plan 78 MM JPY decline（ ‐0.6%）、vs. LY 490 MM JPY increase（＋4.1%)（million yen）

2005
Actuals ※1
Revenues
Operating Income
Recurring Income

Net Income

245,874
11,83012,256
7,305

Plan
※2
333,400
12,40013,3307,400

Actual327,821
12,321
13,225
7,570

2006
vs. Plan
Change% ch-5,578
-1.7
-78
-0.6
-74
-0.6
170
2.3

vs. LY
Change% ch81,946
33.3
490
4.1
969
7.9
264
3.6

※1 : 2005 Actual figure is the total of CCWJ、KINKI CCBC、MIKASA CCBC 2005 actual.
※2 : The above plan is based on the performance forecast announced as of Aug. 8, 2006.

■ Reference ：In the case of adding ex-KINKI group’s actual（million yen）

2005
Actuals ※1
Revenues
Operating Income
Recurring Income

Net Income

417,444
17,812
18,065
10,554

2006
Actual408,240
13,071
14,005
6,955

vs. LY
Change% ch-9,203-2.2-4,740-26.6-4,059-22.5-3,598-34.1※2005 4Q Actual is adjusted based on a total of ex-CCWJ and ex- KINKI CCBC,
eliminating inter-company transaction.

10

2006 Consolidated Profit Changes Factors (vs.Plan)＜Gross Profit＞(100 million yen)

1,447

2006 gross profit plan

＊Major factors for decrease

Impact from sales Company(※）
Sales volume decrease-22

Impact from Sales Company(※)
Decrease by sales mix-10

Decrease by other group companies
Other increase-1・Impact from Sales Company(※）
Sales Volume decrease
2,200 million yen
Sales Mix -1,000 million yen+1・Decrease from othergroup companies

1,415

2006 gross profit actual

Vs. plan : -3,200 million yen-100 million
yen

1300

※Sales companies are ＣＣＷＪ、KINKI CCBC, and MIKASA CCBC
Vs. plan : -1,000 million yen＜Operating Income＞(100 million yen)・Decrease of Gross Profit-3,200 million yen

124

2006 operating income plan△32

Decrease of gross profit
Increase in personnel cost・Increase in personnel cost
-1,000 million yen△10

Decrease in advertising cost

＊Major factors for increase+16

Decrease in sales commission

・Decrease in advertising cost
1,600 million yen+8+5

Decrease in depreciation cost

＊Major factors for decrease・Decrease in sales commission
800 million yen

Decrease of rental expense+3

Decrease in service fee

・Decrease in depreciation cost
500 million yen+2

Decrease in other cost

+7

・Decrease of rental expense
300 million yen

2006 operating income actual

12360

・Decrease in service fee
200 million yen

11

2006 Consolidated Profit Changes Factors (vs.LY)＜Gross Profit＞(100 million yen)

1,075

2005 gross profit

+407
△25
△19

Net increase of KINKI Group(2H)
Decrease of sales volume
Change in accounting classification△9

Decrease by sales mix△6△2

Decrease by other group companies
Decrease in sales of inventory to
CCNBC
Other decrease＊Major factors for increase
・Net increase from KINKI Group
40,700 million yen＊ Major factors for decrease・Decrease of sales volume‐2,500 million yen
・Change in account classification-1,900 million yen△6・Decrease by sales mix‐900 million yen

1,415

2006 gross profit

Vs. last year : +34,000 million yen

1000＜Operating Income＞

Vs. last year : +500 million yen(100 million yen)

118

2005 operating income
Increase in gross profit
Increase from change in accountingclassification
Decrease of rental expense
Decrease of advertising cost・Increase in Gross Profit
34,000 million yen

+340
+19
+5
+4
+2
+3
△365

Decrease in personnel cost
Decrease of other cost
Decrease of KINKI Group SG&A(2H)△3

Increase of depreciation cost123

2006 operating income
50＊Major factors for increase

・Change in account classification
1,900 million yen
・Decrease of rental expense
500 million yen
・Decrease in advertising cost
400 million yen＊Major factors for profit decrease
・Kinki Group SG&A cost
‐36,500 million yen

12Summery (2006 2H)
1. Joint strategies with TCCC/CCJCa)Start of a new stage, recognized as being largest bottle in Japan as well as being one of top
ranked from a global perspective.
・Management meetings, Management forums
・Collaboration marketing ⇒ this is the first time for bottlers to participate in marketing directly
・Collaboration office in Fukuoka and Osaka, etc.
・Cooperation strengthening (CCIBS, CCNBC, CCCMC, CCVPS, etc.) with a national
functional integrated company- Main information system construction used as the model of - Coca Cola system- Being a pilot bottler for standard of purchase process and a vending machine
installation process etc.

2. Strengthening of Enterprise Base in CCW Groupa)Make "DAISEN Beverage Company" which was joint company with other bottlers to subsidiary.
It Changes into a "Coca Cola West DAISEN Products Company".
=> Strengthening Mineral-Water Businessb)Capital Reduction of - KINKI CCBC, MIKASA CCBC, and a KANSAI Beverage Service
Companyc)Three distribution companies unify.
d)SCM (territory crossing delivery, area collaboration supply and demand) beyond the bottler
territory concepte)Effective use of cash (Cash Management System)13

II. 2007 Annual Business Plan

14

2007-2009 Three Year Business Plan
VisionTo the leading bottler in the world・Growth exceeding competition overwhelmingly
・Establishment of a steadfast profit base

Change to the ｢Consumer View｣
The strong confidential relationof employee and company

Target (2009)
Sales Volume
Net Revenue(a)Operating Income(b)Ratio (b/a)
ROA
ROE
EP
FCF

：200 million c/s：44 0billion yen：25 billion yen：no less than 5％：no less than 8％：no less than 5％：4 billion yen more
：12 billion yen more

Strategy
Evolution
Evolution toto thethe new
new bottler
bottler bybystrategic
strategic partnershippartnership strengthening
strengthening
withwith TCCC/CCJC
TCCC/CCJC
Expansion
Expansion ofof thethe sales
sales andand thetheprofitprofit byby thethe "Consumer"Consumer View"
View"
activity
activity exceedingexceeding competitors
competitors
Functional
Functional strengthening,
strengthening, increase
increaseinin efficiency
efficiency which
which harnessed
harnessed
management
management integration
integration
Strengthen
Strengthen aa capability
capability base
base ofof
talentedtalented associates
associates andandorganizationsorganizations
15

2007 Market Scale Prediction & Sales Volume Plan
＜Market Scale Prediction(CCWH area)＞
Market※CCWH survey

Growth （vs.06）

Factors+3.6%

9Positive factors : Inflow from vending machine, Increase of home meal,
Increase in valuable soft-drink ratio, Extension of business hours-1.7%

9Positive factor : Café is well-established in market
9Negative factors : Saving dining out expense, Increase of home-meal-3.6%

9Positive factor : The empty space of alcohol or tobacco vending machines,
Cognition as a social infrastructure of vending machines
9Negative factors : Outflow for takeout (CVS, SM), Outflow for coffee shop

Take-Out Market（Super market, CVS,
Drug store,Retail store）

Eat-In Market（Food service）

Outdoor Vending
Machine Market
Indoor Vending
Machine Market

+0.9%

Total

+1.8%

9Positive factors : Recovery of business (increase in overtime),
Enlargement of business place, Increase in leisure time
9Negative factors : Outflow for takeout (CVS, SM), Reduction inlabor force(000 C/S)＜Sales Volume Plan＞

CCWH

2006
Actual ※
183,6631H
87,478（thousand cases ）2007 Plan
2H
Total
100,852
188,330

Change
4,667

% ch
+2.5

※ 2006 Actual figure is the total of CCWJ、KINKI CCBC、MIKASA CCBC 2006 actual.

16

2007 Financial Plan (Consolidated)＜Consolidated P/L＞
(million yen)

Revenue
Operating Income
Recuring Income
Net Income

2006
Actual327,821
12,321
13,225
7,570

1H
195,500
4,300
4,700
2,700

2H
220,200
10,20010,6006,2002007 Plan
Total
415,700
14,50015,3008,900

Change87,878
2,178
2,074
1,329

% ch
26.8
17.7
15.7
17.6

※ 2006 Actual is CCWH consolidated P/L.
(ex-CCWJ consolidated P/L(1H)+CCWH consolidated P/L(2H))

17

Reasons for Changes in Profit (vs. 2006)＜Gross Profit＞(100 million yen)2006 gross profit

1,415
+371

Net increase of KINKI Group(2H)+22-6

Increase of sales volume
Change in accounting classification-2

Decrease by sales mix
2007 gross profit＜Operating Income＞

1,800

Vs. last year : +38,500 million yen* Main factors for increase
Net increase of Kinki group(2H)
37,100 million yen
Increase of sales volume2,200 million yen* Main factors for decrease
Change in account classification- 600 million yen
sales mix - 200 million yen

1350(100 million yen)123

2006 operating income

Vs. last year : +2,200 million yen＊Major factors for increase

Increase in gross profit+385

Change in accounting classification+6

Decrease of vending machine cost+5

Decrease in personnel cost+2

Decrease in other cost+4

Decrease of KINKI Group SG&A(2H)

-356
-10

Increase in sales commissions-10

Increase in advertising cost-4

Increase of depreciation cost145

2007 operating income
50・Increase in Gross Profit
38,500 million yen
・Change in account classification
600 million yen
・Decrease of vending machine cost
500 million yen
・Decrease in personnel cost
200 million yen＊Major factors for decrease
・Kinki Group SG&A cost
‐35,600 million yen
・Increase in sales commission cost
‐1,000 million yen

18Ref : 2007 Financial Plan (Consolidated)
In case of adding 2006 ex-KINKI group’ actual＜Consolidated P/L＞
(million yen)

Revenue
Operating Income
Recuring Income
Net Income

2006
Actual408,240
13,071
14,005
6,955

Total
415,700
14,50015,3008,9002007 Plan
Change
7,460
1,429
1,295
1,945

% ch
1.8
10.9
9.2
28.0

※2006 Actual is adjusted based on a total of ex-CCWJ and ex- KINKI CCBC,
eliminating inter-company transaction.

19

Ref : 2007 Financial Plan (Reasons for changes in profit)
In case of adding 2006 ex-KINKI group’ actual＜Gross Profit＞
1,783

2006 gross profit
Increase ofsales volume
and sales mix(100 million yen)

KINKI area

+14

CCWJ area+7+2

MIKASA area

Change in account classification

-6
1,800

2007 gross profit
1700<Operating profit>(100 million yen)131

2006 Operating income
Increase of gross profit+17

Decrease in personnel cost+7

* Main factors for increase

Decrease in personnel cost
700 million yen
Decrease of vending machine cost
600 million yen+6Change in account classification

Vs. last year : +1,400 million yen
Increase of gross profit
1,700 million yen+6

Decrease of vending machine cost

Vs. last year : +1,700 million yen* Main factors for increase
Increase of sales volume andsales mix
KINKI area: 1,400 million yen
CCWJ area:
700 million yen
MIKASA area: 200 million yen* Main factors for decrease
Change in account classification- 600 million yen

Increase in sales commission-14

Increase of advertising cost-5

Change in account classification
600 million yen*Main factors for decrease

Increase of depreciation cost-2

Increase of sales commission- 1,400 million yen

Other cost-1

Increase in advertising cost
- 500 million yen

145

2006 operating income
80

Increase of depreciation cost
- 200 million yen

20

2007 Annual Business Plan
2007-2009 Strategy

2007 Annual Business Plan

Evolution
Evolution toto thethe new
new bottler
bottler bybystrategic
strategic partnershippartnership strengthening
strengthening
withwith TCCC/CCJC
TCCC/CCJC

1.
1. Create
Create aa newnew strategic
strategic partnershippartnership2.
2. Activation
Activation ofof existing
existing Channel
Channel // Brand
Brand // Goods
Goods
3.
3. EnterEnter aa newnew domain
domain (goods(goods // market)
market)Expansion
Expansion ofof thethe sales
sales andand thetheprofitprofit byby thethe "Consumer"Consumer View"
View"
activity
activity exceedingexceeding competitors
competitors

1.
1. Create
Create aa structure
structure thatthat picks
picks upup consumers’
consumers’ voicevoice2.
2. Strengthen
Strengthen vending
vending businessbusiness3.
3. Strengthen
Strengthen customer
customer management
management

Functional
Functional strengthening,
strengthening, increase
increaseinin efficiency
efficiency which
which harnessed
harnessed
management
management integration
integration

1.
1. Integration
Integration andand maintenancemaintenance ofof management
management
organization
organization
2.
2. Promote
Promote common
common platform
platform
3.
3. Increase
Increase inin efficiency
efficiency andand productivity
productivity

Strengthen
Strengthen aa capability
capability base
base ofof
talentedtalented associates
associates andandorganizationsorganizations

1.
1. Create
Create aa value
value standard
standard ofof personnel
personnel management
management
andmaintainapersonnel
systemand maintain a personnel system
2.
2. Career
Career development
development ofof employee,
employee, human
human resources
resourcesdevelopment
which
supports
motivation
anddevelopment which supports motivation and manmanpower
Development
power Development
3.
3. Arrange
Arrange aa basis
basis ofof person
person andand organization
organization
management
management21

Ⅰ. Evolution to the new bottler by strategic partnership strengthening with TCCC/CCJC

1. Create a new strategic partnership(1) Management Meeting (once / two months)(2) Marketing Forum (once / two months)(3) Strengthening with functional integrated company (create new system,
model etc.)(4) Collaboration Office (Fukuoka, Osaka)

2. Activation of existing Channel / Brand / Goods(1) Activation of core brand, and plan of sales promotion (Coca Cola,
Georgia)(2) Expand share in OTC market by activation of sugarless tea and water(3) Strengthening CVM by activation of syrup / powder / coffee

3. Enter a new domain (goods / market)(1) Application of tests in chilled products (KINKI Area: 400 VMs)

Create a businessmodel which isincreasing profits inproportion to sales /share expansion

By collaboration
marketing, we
realize “consumerview" marketing
more than what wehave done so far(2) Support CCJC in R&D of health drink, and strengthening merchandising(3) New product verification and evaluation in On-Premise (*) Market* On-Premise : Cooking catering trade22

Ⅱ. Expansion of the sales and the profit by the "Consumer View" activity exceeding competitors

2.
2. Strengthen
Strengthen vending
vending businessbusiness(1)
Optimizationoforganization(1) Optimization of organization related
related toto R&DR&D andandvending
vending operation
operation (Reconstruction(Reconstruction ofof vending
vending business)business)(2)(2) Strengthen
Strengthen base
base andand function
function ofof vending
vending businessbusiness(integrationofcorporation
window
andpromotion(integration of corporation window and promotion ofof ITITvending
vending machinemachine etc.)
etc.)(3)M&A(3)M&A // Examine
Examine businessbusiness tie-up
tie-up

The
The valuevalue
exceedingexceeding the
the
other
company
other company
isis offeredoffered3.
3. Strengthen
Strengthen customer
customer management
management(1)(1) Expansion
Expansion ofof operating
operating support
support function
function forfor sales
sales force
force
(IT
(IT Infrastructure
Infrastructure Development)
Development)(2)Createnewrelationship(2) Create new relationship collaboration
collaboration with
with customer
customer(ECR*(ECR* etc.)
etc.)
(3)
(3) Create
Create structure
structure ofof chainchain store
store businessbusiness based
based ononcustomercustomer

Expansion ofof salessales andand aa profit
profitExpansion1.
1. Create
Create aa structure
structure thatthat picks
picks upup consumers’
consumers’ voice
voice
(1)
(1) Practical
Practical use
use ofof thethe integrated
integrated information
information based
based onon thetheconsumer’s
consumer’s voice
voice
(2)
(2) Create
Create thethe structure
structure which
which makes
makes thethe integrated
integrated
information
information reflectreflect inin management
management(3)(3) Monitoring
Monitoring operating
operating processprocess fromfrom manufacture
manufacture toto store
store* ECR : Efficient Consumer Response -- Measure which increase the efficiency of the whole circulation system. Makers,
wholesales, and retail stores cooperate for the purpose of the correspondence to a consumer's needs.

23

Ⅲ. Functional strengthening, increase in efficiency which harnessed management integration
1. Integration and Maintenance of Management Organization(1) New group management (by area and function), and flexibility of business management(2) Re-design of manufacture function which was able to take CCNBC next generation model andAdjustment(3) Re-design of vending business function at the point of consumer view
2. Promote common platform(1) Construction of the common platform of indirect department(2) Reconstruction of a standard operating process(3) Communalization of direct operating platform(branch office work, an operating plan, SCN)
3. Increase in Efficiency and Productivity(1) Increase in Efficiency of distribution network and reduction of goods
abandonment(2) Central purchasing (joint supply promotion of vending machine,
operating fixtures, etc.)(3) Rising productivity by efficiency of operation(4) Concentration, integration and advancement of IT infrastructure(5) Establishment of performance management structure"Establishment of competitive superiority" by functional enhancement andincrease in efficiency

24

Ⅳ. Strengthen a capability base of talented associates and organizations

1.Create a value standard of personnel
management and maintain apersonnel system(1) Decision of a group talented-people
management concept(2) Maintenance of Management-byObjective system and introduction ofevaluation system in consumer view(3) Promotion of Positive Action andWork Life Balance

2. Career development of employee,
human resources development
which supports motivation and manpower Development(1) Decision of personnel training planand career development plan
(2) Unification of personnel training
organization as CCW group(3) Unification and maintenance of
training, correspondence course, etc.

3. Arrange a basis of person andorganization management(1) Creation of talented-people
database(2) Creation of adoption concept andimplementation of basic training¾Improve the environment where an employee can concentrate for work with employee satisfaction.
¾“Draw an employee’s motivation” “Rise employee satisfaction" “Support an employee’s life".

“Company and Employee" are connected with a strong confidential relation,and then we create the base which all employees can concentrate for workat consumer view point.
25

2007 Sales Volume Achieving Scenario
Vending
Vending (+2.2%(+2.2% vs.
vs. ly)ly)
Expansion
Expansion ofof VM
VM :: +2,178+2,178
Raise:: +1,785
Raise VPM
VPM+1,785
RetiredRetired ofof VM
VM :: -1,382-1,382
CVM
CVM changechange :: -1,300-1,300(CCWJ=>NNB)(CCWJ=>NNB)CVS
CVS (+3.5%(+3.5% vs.
vs. ly)ly)
NewNew productproductCollaboration
Collaboration merchandising
merchandising
with
CCCMC
with CCCMC(thousand cases)

Collaboration
Collaboration marketing
marketingNewNew domain
domain-- New
New productproduct forfor chilledchilled andandCVM
CVM etc.
etc.

+100
+490
+655
+2,140+1,281

Sales volume
183,663OtherOtherRetail
Retail :: -1,201-1,201 (-4.5%(-4.5% vs.
vs. ly)ly)
Food
Food service
service :: +661
+661 (+3.6%(+3.6% vs.
vs. ly)ly)
OtherOther :: +1,030+1,030 (+4.4%(+4.4% vs.
vs. ly)ly)(CVM(CVM changechange etc)
etc)

Sales volume
188,330

ChainChain store
store (+5.7%(+5.7% vs.
vs. ly)ly)CBBBPCBBBP strategy
strategyStrengthen
Strengthen category
category
management
management

2006 actualvisualization
visualization ofof operating
operatingactivities
andtheaccount
activities and the account actual
actualconditionetc.
condition etc.

2007 plan26

2007 Channel Strategy – Sales volume plan

(thousand cases)

2007 PlanKINKI
MIKASA

CCWJ
Sales

% ch

Sales

% ch

Sales

Total

% ch

Sales

% ch

Vending

29,160+0.6

26,169

+3.6

4,400

+4.9

59,730+2.2

Chain store

18,197+3.1

17,199

+10.3

4,255

-0.6

39,650

+5.7

CVS

9,942

+1.5

7,751

+5.7

1,803

+5.0

19,500+3.5

Retail

11,455-4.9

11,257

-4.6

2,910

-2.5

25,620-4.5

Food service

8,041

+2.8

9,574

+4.0

1,569

+5.4

19,180

+3.6

Other

11,006+9.5

12,239

+2.2

1,401

+3.4

24,650+4.8

87,800+1.5

84,190+3.7

16,340+2.0

188,330

+2.5

Total

When the influence accompanying CCWJ/NNB enterpriseadjustment is removed: % change is +3.7%(CVM of CCWJ is transferred to NNB, and Coca Cola vending
machine of NNB is transferred to CCWJ)*NNB is added up by other.

27

2007 Channel Strategy – CCWJ : Vending¾Make high profitability channel, and strengthened competition predominance further.
Main
Main policy
policyPromotePromote newnewdevelopment
development model
model
Profitable
Profitable market
marketdevelopment
development

Develop
Develop
ColumnColumnmanagemanagement
ment
exploiting
exploiting
IT
IT

Improve
Improve low
low sales
sales VM
VM
(1)(1) Re-Installation
Re-Installation of
of VM
VM
(2)
(2) Concentration
Concentration(2(2 VM’s
VM’s toto 11 VM
VM in
in aa
location)
location)(3)(3) Retire
Retire* The number of vending
machine installation :sales extension : -1%(vs. last year)

Percentage of a vending machine

ExpandExpand VPM
VPM bybysystematic
systematic operation
operation

Present
Present condition
condition

TargetTargetPrime
Location
(15%)

Prime

Improvement
Improvement effecteffectLocation
(17%)

Raise
Raise VPM
VPM
Ordinallocation

Ordinal(45%)

Location(48%)

Improve
Improve
profitability
profitability
Improve
Improveproductivity
productivity

Low sales•IT vending machinesales extension: +30%
(vs. last year)

location

Low sales(40%)

Location
(35%)

2006

2007

28

2007 Channel Strategy – KINKI : Chain store<Main theme>
1. Specialize customer management(1) category management => propose variety of goods(2) promotion management => enforcement of an effective promotion, andverification(3) Revenue growth management => maximization of profit
2. The further improvement of market execution => operating process, activity instore, and visualization of account P/L

Sales volume: +10%The vision of cooperation with a customer

Area
managers

Category management
Promotion management
Revenue growth management

Store business

BranchPDCA
Headquarters
business

Whole image of customer managementCS
department

CustomerMD

Further improvement in market power of execution
Information system infrastructure

Supply chain management

No missing items and reduction of inventory in store

29

2007 Channel Strategy – MIKASA : Vending¾Develop business proposal to exploit IT VMs andEnvironmental response VMs¾Strengthen indoor market deployment¾Develop business proposal to exploit Support type VMs andDisaster response type VMs

Expansion of number ofvending machines* The number of vending
machine installation :+4% (vs. last year)=> sharing of CCWJ Know-how

Environmental
response VM

Support type VM

IT VM* The rate of IT VM extension : +260% (vs. last year)30

2007 Brand Strategy – Sales volume plan
(thousand case, %)2006
ActualPlan

Coca-Cola

14,635

Georgia

2007
vs. last year

Component

15,100Change
+465

% ch
+3.2

8.0

42,66544,490+1,825+4.3

23.6

Soukenbicha
Aquarius

14,711
19,29814,72020,340+9+1,042

+0.1
+5.4

7.8
10.8

Hajime

8,551

8,740

+189

+2.2

4.7

Morinomizu

6,051

6,720

+669

+11.1

3.6

Other
Total

77,752
183,663

78,220188,330+468+4,667

+0.6
+2.5

41.5
100.0

31

2007 Brand Strategy (1)Basic
Basic policy
policy Positioning
PositioningA
A brand/theme
brand/themeA
A strategy/directivity
strategy/directivity¾¾ Launch
Launch “No-calorie“No-calorie Coca-Cola"
Coca-Cola" andand “Coca-Cola“Coca-Cola zero“
zero“

Coca Cola
Expansion of a volume share¾¾ Activate
Activate global
global campaign
campaign "the"the Coke
Coke side
side ofof life".
life".
CreateCreate thethe drinkdrink opportunity
opportunity ofof thethe teenage
teenage generation.
generation.

Georgia¾¾ Stability
Stability andand growth
growth ofof coffee
coffee businessbusiness areare realized
realized byby
aa substantial
substantial portfolio.
portfolio.

Soukenbicha
Soukenbicha¾¾ StartStart new
new advertising
advertising campaign
campaign targetingtargeting toto thethe 20’s
20’s
woman.
woman.

Core
brand

¾
¾ Go
Go to
to thethe further
further stagestage based
based onon "fitness"fitness science“
science“

Aquarius¾¾ Aquarius
Aquarius blue,
blue, Active
Active diet,diet, andand Vitamin-gard
Vitamin-gard ++ one
one
more
flavormore flavor

32

2007 Brand Strategy (2)Basic
Basic policy
policy Positioning
Positioning

Creation ofof netnet increase
increase volume
volumeCreation

Priority
Priority
brand
brand

Substantial
Substantial

products
products
offeredofferedComplement
Complement
brand
brand

A
A brand/theme
brand/themeA
A strategy/directivity
strategy/directivity

SpriteSprite¾¾ Create
Create newnew brandbrand positioning
positioning inin aa transparent
transparent carbonic
carbonic
acid
acid market
market¾
Transparent¾ Transparent carbonatedcarbonated drink
drink forfor aa new
new youngyoung adult
adult¾
Change
to
the
new
logo
which
is
commontothe¾ Change to the new logo which is common to the world.
world.

KaradaKaradameguricha
meguricha¾¾ Training
Training andand strengthening
strengthening as
as sugarlesssugarless tea
tea withwith thetheoriginal
original functional
functional value
value based
based onon thethe Oriental
Oriental way
way ofofthinking.
thinking.

Water
Water

¾
¾ Training
Training andand strengthening
strengthening new
new waterwater towards
towards personal
personal
naturalnatural water
water andand functional
functional water.
water.

MinuteMinuteMaid
Maid¾¾ Shift
Shift fromfrom aa juice
juice brand
brand toto wellness
wellness brand.
brand.
¾¾ Strengthen
Strengthen productproduct lineup
lineup-MORNING
ENERGY-MORNING ENERGY :: themes
themes ofof thethe vitality
vitality ofofevolution/
trainingmorning
evolution / training morning-HEALTH-HEALTH BEAUTYBEAUTY :: themes
themes ofof cosmetics
cosmetics andand healthhealthHajimeHajime¾¾ Establish
Establish ofof thethe new
new brandbrand positioning
positioning byby launchinglaunching
SAORI
SAORI

Fanta
Fanta

¾
¾ Strengthening
Strengthening toto keep
keep positioning
positioning as
as No.1
No.1 "" junior
junior andandseniorsenior highhigh school
school students'
students' change-of-air
change-of-air drink"drink"

33

2007 Capital Investment Plan (Consolidated)(million yen, %)Investment

Land
Buildings
Machinery & Equipment
Sales equipment
Other
sub-total
Head office advanced paidon account

Total
Depreciation

2006
Actual※
1,652
4,309
2,883
15,7673,450
28,062－
28,062
24,291

2007
Plan
2,108
3,798
1,987
14,362
3,734
25,9891,500
27,48924,831vs. last year
Change
% ch
27.6
456
-11.9
-511
-31.1
-896
-8.9
-1,4058.2
284-7.4-2,073
1,500
－
-2.0
-573
2.2
540

※2006 Actual is adjusted based on a total of ex-CCWJ and ex- KINKI CCBC.

＜Sales equipment (by area)＞

CCWJ area KINKI area MIKASA area
7,498
5,822
1,042
Investment (million yen)
15,80011,4002,400
No. of VMs (unit)

Total
14,362
29,60034

［Reference］

35

OTC Market Share（Exclude. VM） － CCWH Area
Source：Intage※The numbers outside thegraph are changes v.s. ly（%, Point）
100%

Other

41.8%

D company
C company

5.8%
5.7%

-0.1
+0.7

6.0%
5.7%

-0.3
+0.8

B company

8.8%

-0.5

8.9%

A company

14.7%

-1.1

Coca-Cola

23.2%

-0.9

1Q

43.1%

42.6%

44.0%

43.0%

-0.1
+0.3

5.3%
5.9%

+0.0
+0.0

5.6%
5.7%

-0.2
+0.5

-0.4

5.4%
5.6%
8.2%

-0.5

8.7%

-0.7

8.6%

-0.5

14.5%

-0.8

15.1%

+0.2

15.4%

+0.1

15.0%

-0.3

21.8%

-1.1

21.7%

-1.1

22.1%

-0.3

22.1%

-0.9

2Q

3Q

4Q

Annual

2006
36

By Brand / By Channel Volume/Revenues/Gross Profits
2005 4Q

100％

2006 4Q

Other
47%

HajimeBrand

Sokenbicha
5%
7%
7%

Aquarius
Georgia

37%

36%

6%
6%
6%

6%
6%
5%

38%

41%

27%
Coca-Cola

7%
VolumeOther

13%

Food Service

11%

Channel

15%
10%

CVS

26%
7%
Revenues

6%
Gross Profit

7%
Volume

12%
4%
16%
10%

38%

35%

5%
7%
7%

5%
7%
6%

36%

41%

7%
Revenues

6%
Gross Profit

2006 4Q
6%
5%
15%

14%

7%
7%

14%

11%

11%

12%

13%
4%
15%
10%

Chain Store

Volume

3%

7%
7%

12%
63%

60%
33%

5%
15%

18%

18%

Vending

5%
8%
7%2005 4Q

100％

Retail

47%

46%

46%
32%

Revenues

Gross Profit

VolumeRevenues

Gross Profit

37

Group Company Overview - ４Q
＜ Coca-Cola West Japan＞
2005
4Q
Actual ※1
Net Revenue
Operating Income

41,236
1,352(million yen)2006 4Q
vs. Plan
Change
% ch

Plan
※2

Actualvs. LY
Change% ch42,634
1,651

40,7991,344-1,835
-306

-4.3
-18.6

-437
-8

-1.1
-0.6

37,583627-2,272
-362

-5.7
-36.6

326
-93

0.9
-12.9

6,482
102

-220
3

-3.3
3.3

12
82

0.2
410.0

4,857
109

440
36

10.0
50.6

306
55

6.7
100.8

7,853
-0

-207
-91

-2.6
-

-18
177

-0.2
-

635
-42

-4
-25

-0.7
-

12
-20

1.9
-

＜ KINKI Coca-Cola Bottling＞
Net Revenue
Operating Income

37,257
720

39,856989＜ MIKASA Coca-Cola Bottling＞
Net Revenue
Operating Income

6,470
20

6,702
98

＜ NISHINIHON Beverage＞
Net Revenue
Operating Income

4,550
54

4,416
72

＜ KANSAI Beverage Service＞
Net Revenue
Operating Income

7,871
-177

8,061
91

＜ MIKASA Beverage Servce＞
Net Revenue
Operating Income

623
-22

639
-17

※1 2005 4Q actual figure of CCWJ, KINKI, MIKASA is assumed as it was the same company form
& business adjusted for this term
※2 The above plan is the figure based on performance forecast announced as of Aug.8, 2006.

38

Performance Trend (Consolidated)(million yen)

Net
Revenues
Operating
IncomeRecuring
IncomeNet
Income

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007
(Plan)

113,490

115,408

117,991

164,731207,827

226,111247,737

240,825

253,248245,874

327,821415,700

10,481

10,737

12,533

15,16017,44916,634

16,704

19,63816,86011,83012,321

14,50011,273

11,054

12,51015,88918,516

16,021

17,00519,895

17,065

12,256

13,22515,300

5,721

5,428

5,872

6,823

5,700

1,420

7,086

9,380

8,564

7,305

7,570

8,900

450,000

25,000400,000
350,000

20,00015,000250,000

Operating
Income200,000
150,000

2001/4/5
Make Mikasa CCBC
subsidiary

1999/7/1:
Merged with
Sanyo CCBC

300,000

2006/7/1
Integration with
Kinki CCBC

10,000Net Revenues

100,000

5,000

50,00000（MM JPY）

96

97

98

99

00

01

02

03

04

05

06

07 plan（MM JPY）

39

Financial Data (Consolidated)＜Operating Income／Operating Income Ratio＞ ＜Net Assets / Equity Ratio＞
25,00020,000

10.0

Operating income ratio
8.2
6.7

6.7

15,0006.0

150,000

4.8

5,000

12,321
11,830

81.5

81.0

4.0

16,704

82.5
82.0

3.8
16,86082.1

Operating income

19,63810,000200,000

83.0

Equity Ratio

Net Assets

8.0

83.5

83.2

250,000

80.7

81.0

100,000
164,658

2.0

250,463

80.6
165,454

167,03680.5
173,608
80.0

50,00079.5

0（MM JPY）

0.0
2002

2003

2004

2005

2006 （％）＜ROA／ROE＞

2003

2004

2005

2006

8.4

9.7

ROA

（%）

＜EPS／PER＞
50.0

EPS

8.3

8.0

5.9

6.0

100.0

5.1

116.25PER

108.80
93.42

85.49

33.5
82.22

29.5

4.0
2.0

2002

150.0

12.0
10.0

79.0

0

（MM JPY）

5.7
4.4

ROE

5.2

4.3

50.0

20.8

3.6

24.2
18.1

0.0
（％）

2002

2003

2004

2005

2006

0.0
（JPY）

0.0
2002

2003

2004

2005

2006 （times）

40

Our Group - StructureＧ
Coca-Cola West
Holdings

KINKI
Coca-Cola
Bottling

MIKASA
Coca-Cola
Bottling

Akiyosi Systems
C&C
Seiko Corporate JapanRex EstateWest Japan Service
Takamasamune
Nichibei

Nishinihon Beverage

CCWJ Vending

CCWJ Customer Service

Kansai Beverage Service

Nesco

KadiacMikasa Beverage Service

Mikasa Service

CCWJ Products

CCW Daisen Products

CCW Logistics

Coca-ColaWest Japan(CCWJ)

Kinki Coca-Cola Products

Non-Coca-Cola Business
Associated Companies
MIKASA area

Distribution
KINKI area

Production
CCWJ area

41

Our Group Companies - Principal Business
Our Group Compa ni es（１） Coca-Cola West Japan (CCWJ)（２） Kinki Coca-Cola Bottling（３） Mikasa Coca-Cola Bottling

Pri nci pa l B us i nes s
Beverage sales
Beverage sales（４） CCWJ Products

Beverage sales
Beverage production（５） Kinki Coca-Cola Products

Beverage production（６） Coca-Cola West Daisen Products

Beverage production (mineral water)（７） Coca-Cola West Logistics

Freight transport-operations（８） Coca-Cola West Japan Vending（９） Nishinihon Beverage

Vending machine operations (Coca-Cola products)
Vending machine sales and servicing（10）Kansai Beverage Service

Vending machine sales and servicing（11）Mikasa Beverage Service

Vending machine sales and servicing（12）Nesco

Vending machine operations（13）KADIAC

Vending machine operations (in the Kansai Air Port)（14）Coca-Cola West Japan Customer Service（15）Mikasa Service

Vending machine-related businesses
Vending machine-related businesses（16）Nichibei

Manufacture of processed foods（17）Takamasamune

Production and sales of alcoholic beverages（18）West Japan Service

Insurance, leasing, and business machine sales（19）Rex Estate

Real estate business（20）Seiko Corporate Japan（21）C&C

Maintenance and repair of motor vehicle
Sales and manufacturing of food, Chain restaurant business（22）Akiyoshi Systems

Chain restaurant business

42

Coca-Cola System in Japan
Equity Holding
Coca-Cola
National
Beverages Co.
(CCNBC)The Coca-Cola Company(TCCC)(100%)(100%)

Coca-Cola
Tokyo R&D Co.
(CCTR&D)

Coca-Cola
Japan Co.
(CCJC)

Coca-Cola (4%)
West Holdings(CCWH)

Coca-ColaIBS Co.
(CCIBS)

Coca-Cola
CustomerMarketingCompany(CCCMC)

FV
Corporation
Jointly owned by
TCCC, CCJC,
and bottlers

Coca-Cola
Central Japan(CCCJ)(5%)

10 Coca-Cola
Bottling
Companies(CCBC)

43

Coca-Cola Related Companies and Their Roles
1. Coca-Cola West Holdings Co,, Ltd. (CCWH)

6. Coca-Cola National Beverages Co., Ltd. (CCNBC)In July, 2006, Coca-Cola West Japan Company, Limited
and Kinki Coca-Cola Bottling Company, Limited merged the
management of both companies by establishing a joint
holding company CCWH.

Jointly established in April 2003 by TCCC and CCBCs for the
purpose of creating an optimal nationwide supply chain. It
started operation in October 2003. CCNBC procures raw
materials, coordinates manufacturing and supply/demandplans on a nationwide basis, and supply products to thebottlers.

2. The Coca-Cola Company (TCCC)
Established 1919 in Atlanta, Georgia. Carries the rights togrant a license to manufacture and sell Coca-Colaproducts 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.,” awholly-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 ofconcentrate in Japan.
4. Coca-Cola Tokyo Research & Development Co., Ltd.
(CCTR&D)
Established in January 1993 as a wholly-owned subsidiaryof The Coca-Cola Company. Since January 1995, carries
out product development and technical support to respondto the needs of the Asian region.
5. Coca-Cola bottlers (CCBCs)
There are 12 bottlers in Japan, which are responsible forselling Coca-Cola products in the respective territories.

7. Coca-Cola IBS Co., Ltd (CCIBS)
Established through joint investment by The Coca-Cola
Company and its bottling partners in Japan, and the company
began operations on January 1, 2007. It is charged with
providing business consulting services to the Coca-Colasystem in Japan, as well as developing and generally
maintaining the information systems to support such work.
8. Coca-Cola Customer Marketing Company (CCCMC)
Established through joint investment by Coca-Cola (Japan)
Co., Ltd. and all of its bottling partners in Japan, and thecompany began operations on January 1, 2007. It is charged
with holding business negotiations with major retailer outlets,
such as nationwide convenience stores and supermarket
chains, as well as developing proposals for sales promotions
and storefront activities.
9. FV Corporation (FVC)
Jointly established in May 2001 by CCBCs and CCJC. FVC
carries out sales negotiations with national chain vending
operators, and deals with non-KO products as well as KO
products.

44

Glossary(1)1. Channel (Business Unit)
Vending:
Retail sale business to distribute products through vending machines to
consumers
Chain store:
Wholesale business for supermarket chains
Convenience Store:
Wholesale business for convenience store chains
Retail:Wholesale business for grocery stores, liquor shops, and other over-the-counter
outlets
Food Service:
Syrup sale business for fast food restaurants, movie theaters, sports arenas,“family restaurants,” and theme parks
On-Premise:
Refers to the syrup and package sales business in the “eating out” market
Distributor:
Middleman who work for Coca-Cola to handle our products in remote areas andislands.

45

Glossary(2)2. Vending
Regular vending machine:
A vending machine offered free of charge to a customer who supervises its operation and uses it to sell
products purchased from us.
Full service vending machine:
A vending machine installed and managed directly by us (product supply, collection of proceeds etc.).
Fees are paid to the location proprietors.
Out-market vending machine:
An outdoor machine whose users are relatively unspecificIn-market vending machine:
An indoor machine whose users are relatively specific
VPM
Sales volume per vending machine46

Glossary(3)3. Chain StoreNational chain:
National chain supermarket that CCNSC are responsible for negotiating
Regional chain:
Chain supermarket that owns its stores in the two or more bottlers’ territories
Local chain:
Chain supermarket that owns its stores in the single bottler’s territory
CBPPP:
Stands for Channel, Brand, Price, Promotion
RGM:
Stands for Revenue Growth Management

4. Other
Sales mix
Composite of products by brand, channel, package, etc. The difference between budget and actual
sales or cost of sales might be affected by a change in product sales mix as well as a change in unit
price

47

Forward-Looking Statement

The plans, performance forecasts, and strategies appearing
in this material are based on the judgment of the managementin 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 thoselisted below.
- Intensification of market price competition- Change in economic trends affecting business climate- Major fluctuations in capital markets- Uncertain factors other than those above48