Coca-Cola East Japan
Q2 & YTD 2015
Earnings Presentation
Calin Dragan, CEO
Michael Coombs, CFO
August 7, 2015

www.ccej.co.jp(Posted to CCEJ Website August 6, 2015)

Forward-Looking Statements

Q2 & YTD 2015

The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the
management of Coca-Cola East Japan Co. Ltd. (CCEJ) 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”.

•
•
•
•
•
•
•
•
•

Intensification of price competition in the marketplace
Change in economic trends surrounding our business
Major fluctuations in capital markets
Fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen and the U.S. dollar
Increases in prices of raw materials
Change in the tax environment
CCEJ's ability to realize production efficiencies and to implement capital expenditures at the levels and times planned bymanagement;
CCEJ's ability to market and distribute effectively
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.
CCEJ 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 Zero Taste Challenge (VIDEO)

Q2 & YTD 2015

(TRY! #Kiki Coke – Coca-Cola Zero Taste Challenge Commercial Film)
http://www.cokezero.jp/movie/#movie09
3

Coca-Cola Zero Taste ChallengeWhat? Is this really ZERO?
•••

June – July promotion
Sampling ~100K cans
Nine events in CCEJ territory

Q2 & YTD 2015

Taste and then slide cover off can to
discover if it was Coca-Cola or Coke Zero
Enjoy!
4

Q2 & YTD 2015 Earnings Presentation

Q2 & YTD 2015

Introduction• Overview and Key Messages• Transforming our Business

Second Quarter and Year-to-Date Results• Share, Volume and Financial Results

Rest-of-Year Outlook• Marketing Activities and Key Milestones

5Summary of First Half Results

Q2 & YTD 2015

YTD comparable* operating income improved by 3.8 billion yen vs. prior year,
including cycling the impact of the accounting policy change in Q1 2014.

Ongoing delivery of supply chain synergies, partially offset by increased expenses
related to employee overtime, inventory movement & systems support for rolloutof new Enterprise Resource Planning (ERP) system. Below plan YTD.

Share decline in the second quarter, cycling strong share growth in prior year anddecision to decrease promotional activity at quarter-end (June)

Balanced volume and revenue performance in the quarter and year-to-dateContinued growth in tea, water & coffee led by Convenience Store channel
Acquisition of Sendai Coca-Cola bottler reflected in results from Q2* Includes Q2 2015 acquisition of Sendai bottler

6

Q2 & YTD 2015
Results

www.ccej.co.jp

Transforming the Business in 2015

Q2 & YTD 2015

Rapid organizational transformation & integration continues; acquired Sendai
Coca-Cola Bottling Company, consolidated eight subsidiaries into FV East Japan.

Two new production lines operational in Q2 (Ibaraki, Ebina)
Phase One of ERP System operational. Necessary fine-tuning and “hypercare” IT
support was greater than expected. Limited customer out of stocks in spite ofstrong effort in Q2 to ensure stable continuity of supply during transition.

Developing capabilities and implementing programs for revenue growth
management to improve price/mix.

Restructured indirect procurement into Coca-Cola Business Services Company
8

CokeOne+ ERP System Deployment
アプリケーションマップ(2012/11)

Q2 & YTD 2015

レガシー
J-SCALE個別

人間系の受注

インフラ

EDI関連

テレ受注

訪問

FAX受注

ｽﾏｰﾄﾌｫﾝ

ｱｳﾄﾊﾞｳﾝﾄﾞ受注

受注KPI管理PC端末

ｲﾝﾊﾞｳﾝﾄﾞ受注

修理受付

弊社受信

Web（Ｉｎｆｏmart）

TCCS サーバ（コールセンター）

MOS

受注

DIAS

共通機能

受注ﾃﾞｰﾀ作成

ASN

センター配送照合システ
ム
EOSデータ管理

精算データ作成

ボトラー間連携

共配費用処理ｵﾝﾗｲﾝ請求

各種伝票作成ﾎﾞﾄﾗｰ間精算

EOSシステムWeb
ｸﾗｲｱﾝﾄ

受注統合管理J-SCALE支店

在庫引当

BISS連携補完

ﾏﾃﾊﾝ管理

配送明細
配送一覧

専用伝票
出力

納品書
データ作成

レガシー商品マスター

業種

J-SCALE連携

レガシーマスター作成

レガシーマスター作成

コード変換
z
z
z
J-SCALE：TKのﾚｲｱｳﾄ変換

レガシートラン作成zzz

レガシートラン作成

損益試算

顧客情報

実績紹介

ｵﾍﾟﾚｰｼｮﾝ分析

訪問計画

売切分析

各種調査

活動実績

プレ名人

商品戦略

新商品展開

ﾊﾞｼﾞｪｯﾄ作成
異常値検出

コラム戦略

KPI管理

販売実績
定型帳票

各種売上管理Web検品

PowerPlay
各種売上分析

D-DISデータ作成

翌日精算業務

棚卸
実差表

破損等

在庫転送

入荷検品

ｽｹｼﾞｭｰﾙ管理

商談進捗

各システム間連携

物コン連携

在庫管理

未開拓顧客検索ツール

TVOSS

営業活動推進システム

HUB I/Fシステム

トランザクションデータの管理

受注・在庫連携

LBCクロス（溝口DC)
データ取込

住所

DWH

千葉LC

伝発名人

ピッキングリスト

BI/CRM/SFA関連
REDサーバレガシーマスター管理（Tonedb01）

顧客契約系

利根移行ツール
I/Fシステム

コード変換

データチェック

ディスパッチ

SAP

統合マスター管理
顧客系

共配売上・在庫受注取り纏め（移行ツール）

修理オーダー連携

棚卸
請求データ

翌日積込
＆承認

配送ルート
稼動チェック

管理会計
予算管理

FS預り金
個店損益

J-SCALE
SM関連
HHT

納品（RS)

HHT
ダウンロード

帰所

補充・精算（FS)
一往復検量（CCJC資産）

車上
ﾁｪｯｸ

現金
ﾁｪｯｸ

HHT
アップ
ロード

ルート
セトル

オーダー

銀行入金
業務

費用分析

在庫システム

送り込み計算

支店発注

EJP発注

機内在庫

受払

在庫実績

SAP連携

伝票回収
チェック

自販機検量

過不足金管理（TVOSSサーバ）

KBC

個機過不足

KBC
発注書
入力

送込数
作成

オーダー
依頼

出荷伝票
入力

配車

出荷伝票
出力

最終賞味
期限更新

入荷伝
票入力

製品過不足

現金過不足

在庫実査
売掛金管理システム（顧客）J-SCALEEM

自販機統合システム
サニテーション
機器調達

設置・撤去
移動

修理

請求

計上

リベートシステム（顧客）

入金

残高

与信

リベート計算SharePointサーバ（物理的にはMOSサーバに同居）
リベート/
未払金

経営層ドキュメント管理

会議室予約

帳票出力

費用管理
整備

廃棄

作業履歴管理インスペクション

ノーツ（社内ｺﾐｭﾆｹｰｼｮﾝ）

機器管理
部品EDI

部品管理

修理ｵｰﾀﾞｰ連携

自販機
情報

J-SCALEのSAPシステムでは直結

CCIBS幕張サーバ
ノーツ連携

社内コミュ
ニケーショ
ン

顧客情報
収集

RFA

ｺﾐｭﾆｹｰｼｮﾝ
ﾒｰﾙ

ホームページ
インターネットメール変換
プロキシ

賃貸料
管理

SAP I/F(Tonekk03)
一般会計

J-SCALE
実行系

原価計算

購買業務

買掛管理

稟議（COA）

組織管理

昇給

目標管理

報酬管理（評価）

人事異動

賞与

E-Learning

出向管理

退職金

福利厚生

入庫登録Ｉ／Ｆ

販売ﾘﾍﾞｰﾄ仕訳Ｉ／Ｆ
給与・賞与仕訳Ｉ／Ｆ

入出庫伝票登録Ｉ／Ｆ

支払業務

支払業務

売上仕訳Ｉ／Ｆ

営業所在庫Ｉ／Ｆﾌｧｲﾙ

MINIAP
給与（外部委託：ペイロール社）
勤怠管理

パックスクリエーション外部サイト

ノーツ連携（CACHATTO）

FBシステム(みずほ）

三井住友
在庫・（物流）労働者名簿

受注出荷Ｉ／Ｆ

Ｗｅｂ広報利根

資金管理（一部・単独）部門利益管理FSコミッション

HCM

Web広報利根連結決算(ｼﾅﾝｼｬﾙ社）
SUPER COMPACT
Pathfinder

売掛管理（一般顧客を除く）

固定資産

J-SCALE
BO系

給与計算

年末調整

保険業務

ＣＣＣＪ

健康保険組合（カシオ情報機器：健康保険総合ｼｽﾃﾑ）

共済会

仮払い

経理・人（適用）・
給付・検診

TONEWSS1

HUBマスタ・トランチェック

システム全体図FlashReportExcell加工

TONEAD1

NetStrage260

ポリシー管理ドメイン管理Windows Updat
バージョン管理

ユーザー管理バックアップデータ＝BISS（支店系）

ﾚｾﾌﾟﾄ（法研）

受注

BISS支店系/納品準備
ＥＯＳ/ＤＩＡＳ

受注情報

ウィルス管理（ｼﾏﾝﾃｯｸ）

TONEHULFT

システム監視（CAT6）

BISS支店系/納品精算

専伝マスタ？

ユーザーログ監視

セキュリティー管理

ディスパッチ＝BISS（ＢＯ）

BISS支店系/営業所事務

納品情報

自社伝票発行（端末精算）

レギュラーハンディー

伝票情報

フルハンディー

ﾛｰﾄﾞ情報預り金管理

テレセルセンター
専用伝票発行

釣り銭管理

一往復オペレーション

端末

プレロード

過不足管理

ﾛｰﾄﾞ情報センター納品
売上インターフェイス

入金管理

フルプレロード
売上代入金口座管理

ＤＣシステム
積込指示

ＥＯＳ

BISS支店系/在庫管理

セトルメントＤＣ/ ＴＣ

出荷

売上情報

出荷実績

ロード受払

次世代SCM対象範囲
次世代SCM
導入後廃止

ＳＣＭ

営業仕訳

保管場所移動

需要予測

出荷予定

フルコミッション管理

CIMMS

支店オーダー（CCEJPオーダー）

出荷計画

出荷指示

入出荷実績

入荷予定

小払い精算
フロントプロセス

ＤＷＨ

顧客管理

出荷予定

DDI S
売上情報
営業仕訳情報

顧客情報
商流管理情報物流管理情報
自販機情報

製品オーダーＬＣシステム

CCJC

フルコミッション

マスタ管理

製品移管

入荷検収

売上分析

BISS 実行系

個店損益
各種仕訳情報会計

契約単価管理ｾ ﾝ ﾀｰ納品ｸﾛｽ配送

Ｖｉｓｉｔ
購買

専伝情報管理ＥＯＳ

その他（営業所間移管）

在庫

給与システム

棚卸し【 主なシステムの外部データセンター設置場所 】[富士通ＦＩＰ中原センター]
・ 現営業所（TKシステム）サーバ
・ 売掛金管理システムサーバ
・ ＣＪ Ｉ ／Ｆ（インターフェース）サーバ[富士通ＦＩＰ都築センター]
・ 需給システムサーバ
・ テレセルＤＢサーバ※Ｂ ＩＳＳ支店系導入が完了次第、現営業所 （ ＴＫ）システム は撤去
事業所サーバはＦＳコミ リプレイス後撤去予定[名古屋事務所]
・ 中京地区ＬＣシステムサーバ・ 関連会社システムサーバ

人事システムチェーン情報管理

CJ I/F（レガシー）

在庫管理

販売

物流システム

商品管理

賞味期限管理

配送費用計算（C JL協力会社配送費）

プロモーション
在庫情報検索売掛システム
売掛管理

債権管理

ＥＯＳ

【 システムリプレイス時期（予定）】・ 売掛金、協賛金、ＦＳコミ： 2014年
・ テレセルセンター： 2015年
・ ＤＷＨ： 2014年～2015年

個店別情報

リベート
協賛計上

在庫情報

Before CokeOne+ ERP System:• Non-standardized business processes• Insufficient management reporting• From 26 legal entities to four
• ~200 Loosely integrated systems• Complex – 2,500 interfaces• Multiple master databases

From April 2015
One System; Cloud-Based• CokeOne+ is a full transformation of business processes and people’s daily activities,
including accounting, procurement, payment, manufacturing, inventory, shipping, etc.
• Such an integrated management system is a “must-have” to manage the current business,
and a foundation for further business transformation.
• We experienced a short-term impact on supply chain management in Q2, resulting in limited
customer disruption, as well as increased costs.
9Volume Performance in the First Half
1H Reported Volume
Q2 Reported Volume
Sequential
Improvement
duringQ2 after Tax Rise
by Month
Q2 & YTD 2015by Quarter

1H volume+5.4% (+0.1%*)Q2 Highlights

+17%
+15%
+11%
-+6.7%*+6.7%*

Q1-+1.3%*-1.5%

Q2

Sendai Bottler acquisition
effective April 1-+4.4%*+4.4%*

April

May

Cycling prioryear
decline afterc-tax hikeSolidperformanceand share
growthJune• Sendai acquisition April 1• Strong volume in April
cycling C-tax last year
• Less CCEJ volume
promotions in June (2Lwater); Heavy competitor
launch and promotional
activity+3%

OutlookCycling prioryear growth;Less promo
activity in SM& Discounters--5.6%** Organic volume growth, not including Q2 acquisition of Sendai bottler• Slow start to July; End ofrainy season mid-month• Competitor promotions,new products continue• Q3 peak season forbottling business10Balancing Volume & ValueLess Promotional Activities in June Led to Volume Decline

Q2 & YTD 2015

CCEJ Historic Weekly Volume Shipment Trends• Less promotional activities inJune vs. past trends, in line with
our ongoing price, terms &conditions (PTC) focus• This continued emphasis on
trying to balance volume andvalue could mean up to 2 to 3
million cases less volume in 2015
• The June volume decline
negatively impacted profit andmarket share• We continue to evaluate theeffectiveness of various PTC
actions in market and we willcalibrate our activities

Source: Compass volume and Intage SRI share

Example: Drug & Discounter Channel

11Connecting with the Consumer
Q2

Coca-Cola Bottle 100th Anniversary

Q2 & YTD 2015

Coca-Cola Life

Kiki Coke Taste Challenge

Share-a-Coke
Coca-Cola
AluminumContour Bottle

Q2

Customer-Exclusive Branded Products
Georgia
Private Reserve

Q2

The great tasteof Coca-Cola ZeroI lohasI lohasTomatoHajimeGreen Tea

FOSHU Tea

I lohas
Aloe

PEKO RAKU Crushable Large PET

KaradaSukoykacha W
1L PET

Georgia European Renewal
Concept Cafe
Coffee House
European opens in
Omotesando, TokyoTSUMUGI Oolong Tea

Toreta!

Using
Japanesetea leaves

12Slight Share Loss Cycling Prior Year Growth

Volume & value share growth in 6 of 7 quarters

2015
Market Share*

Q2

YTD

Volume
Value

-0.3
-0.4

-0.1
-0.1

vs. Prior Year

Share gains in cola, teas, water;
Challenges in flavored sparkling
June share reflects less promotional activity

Value Share vs. Prior Year

Volume Share vs. Prior Year
Q1
+0.4

Q2
+0.7

Q3
+0.9

Q4
+0.8

Q2 & YTD 2015

Q1*
+0.2

Q2*
-0.3

Q1
+0.2

Q2
+0.9

Q3
+0.6

Q4
+0.4

Q1*
+0.2

Q2*
-0.4

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2014
+0.7

2015 YTD*
-0.1

2014
+0.5

2015 YTD*
-0.1

2014

2015

2014

2015

2013

2013

* Including Sendai Bottler (now South Tohoku Region)** Source: Intage, OTC channel, NARTD beverages

13Volume Performance by Channel

Q2 & YTD 2015

Q2 Volume by Channel

Channel Volume Growth(% of total)
Vending(VM)
27%

Others11%

Eating &Drinking
13%

Including Sendai

Supermarket(SM) 22%

Convenience
Store (CVS)

15%

Drug &
Discounter
(D&D)

12%

Total Volume, including Sendai
Q2 +11.1%; YTD 2015 +5.4%• CVS growth led by water, tea, coffee• Drug & Discounter, Supermarkets reflect lesspromotional pricing and pullback in 2L water• Vending weak due to weather and channel mix.
Indoor outperforming outdoor.
• Eating & Drinking growth led by outlet expansion

vs. Prior Year

CVS

D&D

Nat’l SM

Local SM

VM

Eat & Drink

Q2 2015

+20%

+13%

+13%

+7%

+6%

+23%

YTD 2015

+17%

+6%

even

+1%

+2%

+14%

* BAPC (Bottler Actual Physical Cases)

Organic Volume
Excluding Sendai Q2 +1.3%; YTD +0.1%

vs. Prior
Year

CVS

D&D

Nat’l
SM

Local
SM

VM

Eat &
Drink

Q2 2015

+8%

+1%

-1%

even

-4%

+15%

YTD 2015

+11%

-1%

-8%

-3%

-3%

+10%

14

Volume Performance by Category
Q2 Volume by Category

Category Volume Growth(% of total)
Sparkling(SSD) 26%
Teas
21%

Others12%Sports11%

Q2 & YTD 2015

Including Sendai

Juice
4%
Coffee
16%
Water
10%

Total Volume, including Sendai
Q2 +11.1%; YTD 2015 +5.4%• NST growth due to success of recent launches• Water performance reflects less 2L promotions• Coffee led by customer-exclusive brands• SSD & Sports Drinks impacted by weaker vending• Juice growth led by new outlet expansion

vs. Prior Year

NST

Water

CoffeeSparkling

SportsJuice

Q2 2015

+16%

+12%

+14%

+6%

+9%

+22%

YTD 2015

+11%

+8%

+8%

+1%

even

+10%

* BAPC (Bottler Actual Physical Cases); NST (Non-Sugar Tea)

Organic Volume
Excluding Sendai Q2 +1.3%; YTD +0.1%

vs. Prior
Year

NST

H2O

Coffee

SSD

SportsJuice

Q2 2015

+8%

+1%

+1%

-3%

-2%

+12%

YTD 2015

+6%

+2%

+1%

-4%

-7%

+5%

15

Q2 & YTD 2015
Financial Resultswww.ccej.co.jp

Drivers of Second Quarter Operating Income+247
In MM JPY

+1,385-511

DME**

GP Impactof Mix & Vol

3,954• Improving mix in
SM & DD
channels w/ lessdiscounting• Offset by vending
weakness andnegative mix fromfood service &customerexclusive brands

2014 Q2
Comparable
Operating Income-919

Supply Chain
Synergies• Overall synergy
capture delayed
due to expenses
related toinventory
management
after ERP rollout• “Big Bet” brandlaunches• VM locations• Key accounts• Greater than
plan due totimingQ2 & YTD 2015

-671

+753
Other
Subsidiaries

Depreciation
vs. PY• In line with plan. • FV East Japan
Benefit vs prior • Sendai CCBC
year related totiming ofexpenses in2014 andpension-related• COGS: -200
• SG&A: -471

OPEX

4,239

• Delivering
manufacturingsynergies on plan

*Adjusted for 243 million in Q2 2014 and 954 million in Q2 2015 non-recurring expenses**DME: Direct Marketing Expenses

2015 Q2
Comparable
Operating Income17Second Quarter 2015 Results

Q2 & YTD 2015

• Balanced volume & revenue performance • Improving gross margin driven by manufacturing efficiency • Comparable SG&A
increase led by continued marketing investment & people costs • Q2 tax reflects deferred tax for consolidation of subs (FVEJ)
2015 Q2

2015 Q2

2015 Q2

2014 Q2

ActualOne-time
items

Comparable

Comparable-

80,784in million yen

Sales Volume(BAPC) (,000 cases)

80,784

Vs. PYDiff%

72,725

8,059

+11.1

151,828-

151,828

136,580

15,248+11.2

81,204-

81,204

74,229

6,975

+9.4

70,623-70,62362,351

8,272

+13.3

67,338-954

66,38458,397*

7,987

+13.7

Operating Income

3,285

954

4,239

3,954

285

+7.2

Profit Before Tax

2,850

1,414

4,219

4,086

133

+3.3

Net Income

2,531

910

3,441

2,437

1,005

+41.2

Net Revenue
COGS

Gross Profit
SG&A*Adjusted for 243 million in Q2 2014 non-recurring expenses
Note: 2014 volume was revised in our Q4 2014 earnings announcement
as a result of data and system standardization.

18

Drivers of First Half Operating Income

Q2 & YTD 2015

In MM JPY
Supply Chain
Synergies• Overall below
plan due to Q2
expenses related
to inventory• +0.1% volume
management
cycling PY +2.6%
after ERP rollout
volume growth• Delivering• Improving mix inmanufacturing
SM & DD
synergies on planchannels w/ lessdiscounting

GP Impactof Mix & Vol-1,222
2014 1H
Comparable
Operating Income• Offset by vending
weakness andnegative mix fromfood service &customerexclusive brands

-997

DME**

2,640

• “Big Bet” brandlaunches+3,763• VM locations• Key accounts• Some impactof timing

Other
Subsidiaries-1,581+2,2972015 1H
Comparable
Operating Income• FV East Japan

OPEX
In line with plan:-160• Sendai CCBC

+540

Depreciation
vs. PY• COGS: +589
• SG&A: +3,174• Cycling prior year
accounting change in Q1*Adjusted for 651 million in 1H 2014 and 1,295 million in 1H 2015 non-recurring expenses**DME: Direct Marketing Expenses

19

First Half 2015 Results

Q2 & YTD 2015

• Balanced volume and revenue performance • Improving gross margin driven by manufacturing efficiency • COGS and SG&A
benefit from cycling Q1 2014 accounting policy change • Q2 tax reflects additional deferred tax for consolidation of subs (FVEJ)
2015 1H

2015 1H

2015 1H

2014 1H

ActualOne-time
items

Comparable

Comparable-

139,794in million yen

Sales Volume(BAPC) (,000 cases)

139,794

Vs. PYDiff%

132,610

7,184

+5.4

262,049-

262,049

248,495

13,554+5.5

140,051-

140,051

135,781

4,270

+3.1

121,997-

121,997

112,714

9,283

+8.2

120,651-1,295

119,356

113,936*

5,420

+4.8

Operating Income

1,345

1,295

2,640

-1,222

3,862-

Profit Before Tax

131

2,445

2,576

-1,036

3,612-

Net Income

988

1,574

2,562

-1,5404,102-

Net Revenue
COGS

Gross Profit
SG&A*Adjusted for 651 million in 1H 2014 non-recurring expenses
Note: 1H 2014 results include JPY 805 million in COGS and JPY 3,850 million in SG&A due to the write-off of residual value ofexisting tangible fixed assets related to a change in accounting policy
Note: 2014 volume was revised in our Q4 2014 earnings announcement as a result of data and system standardization.

20

Second Half 2015
Outlookwww.ccej.co.jp

Coca-Cola Summer Campaign

Q2 & YTD 2015

Transform the summer
Transform yourself
22

Second Half Outlook; “Reasons to Believe”

Q2 & YTD 2015

Q3 the most important quarter of the yearWe are strengthening Marketing & Execution programs in key channels– Solid marketing calendar for second half of 2015
– Targeted promotional activities that respect PTC guidelines

Increased focus on Logistics optimization– Increase direct shipments (plant to sales center) & reduce hub-to-hub moves– Reduce finished goods transport distance; Improve efficiency of truck-loadingClose review of all operating expenses is underway
23Key Milestones in the Second Half

Q2 & YTD 2015

Continued stabilization and utilization of new ERP system in Q3; management of
stable product supply as we fully shift to new system.

Two new production lines (Iwatsuki) to be commissioned in 2H
Additional Bottle Can capacity (Tokai) to be commissioned end of Q3
Operational integration of Sendai (now South Tohoku Region) and FV East Japan
Regional approach to Supply Chain optimization
Pricing, Terms & Conditions; Continued promotional optimization
24

APPENDIX

www.ccej.co.jp

CCEJ One+ Roadmap for Growth

Q2 & YTD 20152018- Tokyo Olympic
Games & Beyond
2016-20172015-20162012-20142012-2013
Forming& Storming
Forming
Define & deploy new

business model
Speed ofintegration:
250+ projects

Identifying
synergies &positioning for
growthNorming
Refine &optimize new
business model

Accelerating

Performing
Approaching
global bottler
performancelevelsProcess re-engineering
Exploiting new& launch of ERP systemarchitecture as
while delivering firstcompetitive
results
advantage to drivesynergies & growth

Meet & exceed
world-classbottler levels

A world-class
Japanese bottler
on the world stage

26

The Coca-Cola System

Q2 & YTD 2015

A powerful partnership driving growth of the Coca-Cola business
The Coca-Cola system in Japan consists of the Coca-Cola (Japan) Company (CCJC), bottlers and other related companies.
CCJC, as the franchise owner, is responsible for supplying concentrate and beverage bases (coffee beans, tea leaves, juices, etc.) for allof Coca-Cola’s brands, as well as R&D, innovation, and marketing and brand development.
The bottlers, including CCEJ, as franchisees, are responsible for manufacturing, distribution and selling the finished products. We all are
working together with our system partners to grow the Coca-Cola business by optimizing our overall operations through more efficient
production and distribution, marketplace execution that is firmly focused on the consumer, faster response to market preferences,enhanced customer service, and rigorous quality control.
Other Coca-Cola System Related Companies in Japan
Coca-Cola Tokyo Research &Development Co., Ltd. (CCTR&D)

Product development and technical support to respond to the needs of thecustomer in Japan. A wholly owned subsidiary of The Coca-Cola Company.

Coca-Cola Business Service Co., Ltd.
(CCBSC)

Providing joint procurement of raw materials, packaging, etc. as well as businessconsulting services, developing and maintaining the information systems to
support Coca-Cola System. Jointly owned by The Coca-Cola Company and all thebottlers in Japan.

Coca-Cola Customer Marketing
Company (CCCMC)

Business negotiations window for nationwide retail, convenience stores,
supermarket and food-service chains as well as developing proposals for sales
promotions and storefront activities. Jointly owned by CCJC and all the bottlers inJapan.

FV Corporation Co., Ltd. (FVC)

Sales negotiations window for national chain vending operators, and deals nonCoca-Cola products as well as Coca-Cola branded products. Jointly owned by CCJC
and all the bottlers in Japan.

27

Glossary of Frequently Used Terms

Q2 & YTD 2015

CDE

Abbreviation of Cold Drink Equipment. Vending machines, coolers and beverage dispensers, etc.

Coolers

The equipment with Coca-Cola’s logos which keeps beverages at an appropriate temperature (chilled and/or hot) for immediate
consumption, and ready for selling them at the storefront of retail outlets and restaurants. It serves as point-of–sales advertising, too.

DME

Abbreviation of Direct Marketing Expenses. Sales promotion-related expenses reported in advertisement & sales promotion expenses
and partly in sales commissions of SG&A.

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 thebeverages 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 fountains) and channels that consumers purchase the beverages for IC(forexample, vending machine, convenience stores channels, etc.).

OBPPC

Abbreviation of Occasion, Brand, Package, Price, Channel. A segmentation strategy tailored to consumption opportunities in fiveareas: occasion, brand, package, price and channel.

Operational
Excellence (OE)The Coca-Cola System’s way to develop people and culture around productivity which allows higher financial value achievement bydriving sustainable improvement using common language and tools as well as focusing on business priorities.

RTM

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

28

THANK YOU
Coca-Cola East Japan
Q2 &YTD 2015 Earnings Presentation
August 7, 2015
<Inquiries>
Investor Relations
Coca-Cola East Japan
ir@ccej.co.jp+81-3-5575-3797
http://investor.ccej.co.jp/

www.ccej.co.jp