Coca-Cola East Japan
Q4 & Full-Year 2015
Earnings Presentation
Calin Dragan, CEO
Michael Coombs, CFO
February 15, 2016www.ccej.co.jp(Posted to CCEJ Website February 12, 2016)

Forward-Looking Statements

Q4 & Full-Year 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

Taste The Feeling: New Global Campaign

Q4 & Full-Year 2015

Calin Dragan, Chief Executive Officer
Michael Coombs, Chief Financial Officer
May 13, 20143

Q4 & Full-Year 2015 Earnings Presentation

Q4 & Full-Year 2015

Introduction• Overview and Key Messages

Full-Year 2015 Results• Share, Volume and Financial Results

One+ Roadmap for Growth• Key Takeaways

Outlook for Full-Year 2016
• Full-Year Plan

Wrap-up4Q4 & Full-Year Overview and Key Messages

Q4 & Full-Year 2015

Full-year reported operating income slightly ahead of revised forecast (October 2015)
Delivered positive gross profit impact of volume, price and mix in Q4
Full-year gross profit margins improved, as we deliver manufacturing and procurement
synergies
Recovery of market share in Q4, both volume and value (Product launches & investment)
Transformation of our business continued in Q4• Commissioned one new production line in Iwatsuki• Completed legal entity consolidation of Sendai Coca-Cola Bottling Co., and subsidiaries into CCEJ and inclusion
in ERP system as of January 1, 2016
• Successfully completed second bond offering of JPY 16 billion

Announced key management transition plan (Finance, Corporate Communications)5Transformation Continued in Line with Plan

Q4 & Full-Year 2015

2015: Major achievements in the second full year of operations

 Sendai Coca-Cola Bottling Company••

Acquisition completed on April 1, 2015
Completed legal entity consolidation and inclusion in ERP system as of January 1, 2016

 Consolidated further eight subsidiaries and established mixed vending operation
subsidiary, FV East Japan on April 1, 2015

 Commissioned four new production lines in Ibaraki, Iwatsuki and Ebina, and a newbottle can filler in Tokai Deployed and stabilized Phase One of ERP system “CokeOne+” Standard RTM deployment completed, starting phase 2 optimization
 Organizational capability strengthened6

Q4 & Full-Year 2015
Results

www.ccej.co.jp

Full-Year Volume Performance
Reported Volume

2015 - Highlight by Quarterby Quarter

Q1

Full-Year
+8.7% (+1.1%*)• Cycling 2014 ahead of consumption tax increaseQ2+14.8%+11.1%+9.0%-+5.1%*+1.5%-+1.3%*

Q2

Q3• Sendai acquisition on April 1• Strong volume in April cycling C-tax increase in 2014
• Less CCEJ volume promotions starting in June (2L Water)

Q3• Unseasonal summer weather (cooler & wetter than average)• Continued soft results in vending channel• Volume decline in 2L pack size due to less discounting• Competitor promotions, new product launches continue

Q4--0.4%*

Q1

Q4 & Full-Year 2015

Q4

* Organic volume growth, not including Q2
acquisition of Sendai Coca-Cola Bottling Co.

• Recovering growth and gained market share• Successful new product launches in coffee & flavored water• Selective and targeted investment in promotional activities(balancing volume and value)8

Share Recovery in Strong Competitive Environment
2015
Market Share*

Q4

Full-Year

Volume
Value

+0.2
+0.4

-0.3
-0.2

vs. Prior Year

Volume Share vs. Prior Year

Q4 & Full-Year 2015

• Share gains in Colas, Teas and Water• Value share gains in Supermarket, Convenience
Store, Drug & Discounter channels• Value share ahead of volume share

Value Share vs. Prior Year

* Including Sendai
Source: Intage, OTC channel, NARTD beverages

9

Toward More Rational Pricing

Q4 & Full-Year 2015

OTC Retail Pricing Trends••

Average retail price declined vs. prior year, reflecting market trends
CCEJ average retail price above market average for both large and small packages, driven byless aggressive promotional activity and selective investment– continuing from the third quarter
CCEJ OTC Retail Price(As of January 3, 2016)

vs. Prior Year (in Yen)
Last 12 Weeks

Full-Year 2015

Large PET

-1.8

-2.2

500ml PET

-1.2

-1.6

CCEJ OTC Retail Price(As of January 3, 2016)

vs. Market Average (in Yen)
Last 12 Weeks

Full-Year 2015

Large PET

+11.9

+13.7

500ml PET

+1.2

+0.5

Source: Intage, OTC channel, NARTD beverages

10Performance by Channel: Improving Mix
Q4 Volume by Channel

Q4 & Full-Year 2015

Channel Volume Growth(% of total)

Including Sendai

Others11%
Vending(VM)
29%Supermarket(SM)
Drug & Discounter
20%
(D&D)
11%
Eating &Convenience
Drinking
Store (CVS)
(E&D)
15%
14%
vs. Prior Year

Total Volume, including Sendai
Q4 +14.8%; Full-Year 2015 +8.7%
Q4 Organic Performance Drivers• Convenience store growth led by water, coffee, teas
• Drug & Discounter grew across categories• Supermarket recovery driven by tea, water and coffee• Vending recovery led by Georgia The Premium & new
PicOS (“picture of success” column management)• Eating & Drinking growth led by outlet expansion

CVS

D&D

Nat’l SM

Local SM

VM

E&D

Q4 2015

+22%

+25%

+13%

+12%

+11%

+20%

FY 2015

+16%

+12%

+6%

+5%

+5%

+18%

* NST (Non-Sugar Tea)

Organic Volume
Excluding Sendai 
Q4 +5.1%; Full-Year +1.1%

vs. Prior
Year

CVS

D&D

Nat’l
SM

Local
SM

VM

E&D

Q4 2015

+11%

+11%

-1%

+5%

+1%

+12%

FY 2015

+8%

+2%

-5%

-1%

-3%

+11%

11

Performance by Category: Driving Value

Q4 & Full-Year 2015

Q4 Volume by Category

Category Volume Growth(% of total)

Including Sendai
Juice
5%

Others12%

Sparkling (SSD)
25%

Coffee
18%
Teas
23%

Sports
6%

Water
11%

Total Volume, including Sendai
Q4 +14.8%; Full-Year 2015 +8.7%

vs. Prior Year

NST

Water

CoffeeSparkling

SportsJuice

Q4 2015

+18%

+29%

+17%

+9%

+9%

+25%

FY 2015

+12%

+10%

+12%

+5%

+4%

+16%

* NST (Non-Sugar Tea)

Q4 Organic Performance Drivers• Water growth fueled by ilohas momo (peach) launch• Tea (NST) growth driven by strong momentum of Ayataka• Coffee led by launch of The Premium & customer-exclusive• Sparkling soft drink recovery led by E&D and D&D channels• Juice growth driven by new outlet expansion

Organic Volume
Excluding Sendai 
Q4 +5.1%; Full-Year +1.1%

vs. Prior
Year

NST

Water

Coffee

SSD

SportsJuice

Q4 2015

+10%

+17%

+4%

even

-2%

+15%

FY 2015

+6%

+2%

+3%

-2%

-5%

+8%

12

Full-Year 2015
Financial Resultswww.ccej.co.jp

Drivers of Full-Year Operating Income

Q4 & Full-Year 2015

In MM JPY
GP Impactof Mix & Vol.

-2,584

10,474

Supply Chain
Savings+2,167• 1.1% organic• Approx. 5B yen
volume growth
manufacturing• Moderating (less& procurement
negative) GP
synergies,
trends vs. prioroffset by labor
years
and cycling of• VM weakness &PY expenses
pricing pressure;partially offset by
PTC initiatives+2,732-1,153DME**-1,214• Improvement vs.
OPEX
past run rate
mainly driven by • In line with plan
lower Q4
• Reflects laborpromotion
expense & timing cost inflationof customer
contract renewals& related CCJC
support2014 Full-Year
Comparable
Operating Income
OI Margin: 2.0%

+1,480Other
Subsidiaries• Smoothintegration of
Sendai• FV East Japan

Depreciation
vs. PY

11,902• COGS: +692
• SG&A: +2,040• Cycling prioryear accountingchange in Q1

2015 Full-Year
Comparable
Operating Income
OI Margin: 2.1%

*Adjusted for 1,118 million in Full-Year 2014 and 1,111 million in Full-Year 2015 non-recurring expenses**DME: Direct Marketing Expenses

14Full-Year 2015 Results

Q4 & Full-Year 2015

• Volume and revenue growth gain traction in Q4 • Improved gross margin driven by manufacturing and procurement efficiency• SG&A increase led by marketing investment, logistics, Sendai integration, etc. • Net income increased due to lower effective
tax rate versus prior year

Full-Year 2015

FY 2015

FY 2015

FY 2014

ActualOne-time
items

Comparable

Comparable-

305,951in million yen

Sales Volume(BAPC) (,000 cases)

305,951

Vs. PYDiff%

281,586+24,365+8.7

563,162-

563,162523,299+39,862+7.6

302,087-

302,087

283,963+18,123+6.4

261,075-

261,075

239,336+21,739+9.1

250,284-1,111

249,173

228,861+20,312+8.9

Operating Income

10,791

1,111

11,902

10,474+1,428+13.6

Profit Before Tax

8,286

2,901

11,187

10,643+544+5.1

Net Income

5,354

1,867

7,221

5,975

+1,246+20.9

Net Revenue
COGS

Gross Profit
SG&A*Adjusted for 1,118 million in Full-Year 2014 non-recurring expenses
Note: Full-Year 2014 results include JPY 1,028 million in COGS and JPY 4,545 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.

15

One+ Roadmap
for Growthwww.ccej.co.jp

CCEJ One+ Roadmap for Growth

Q4 & Full-Year 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

17

2012 to 2015 Operating Income Drivers
Significant Integration Value Offset by Top Line Erosion
Approx. ~20B

Approx. ~20 B
GP impact
on mix/vol.

SCM
Synergies

OPEX

FY2012 Proforma OI

Unit: Billion Yen

2015
Other
subsidiaries&
structuralchangeIntegration
Achievement

10.7

Q4 & Full-Year 2015

- Extensive
transformation- Synergy capture

Headwinds
2014
&
2013

- Competitor pricing- Consumption tax hike

DME
Logistic &Distribution,
One time,
Production
etc.
Line Delays, Depreciation,
Net
etc.

11.9

FY2015 Comparable OI*Numbers are rounded.

18

One+ Roadmap Progress & Update

Q4 & Full-Year 2015

Remain focused on the journey to World-Class• Maintain Roadmap transformational steps & timeframe• Delayed pace of profit improvement

2018- Tokyo Olympic
Games & Beyond

Accelerating

2016-20172015-20162012-20142012-2013
Forming& Storming
Forming
Define & deploy new

business model2013

Operating Income
Target2014

Norming
Refine &optimize new
business model
2015

Performing
Approaching
global bottler
performancelevelsMeet & exceed
world-classbottler levels

2016

2017

2018

14.0

+2.0

+2.0
Unit: Billion Yen

19

2015 to 2018 Operating Income:Continued Synergy Opportunities & Stabilized Top LineDME*
GP Impactof Mix & Vol.

11.9
B Yen

• Stabilized
performance• Expecting
someconsumer
impact in2017 after
proposedconsumption
tax hike2015 FY
Comparable
Operating Income

Supply Chain
Savings• Logistics &distribution
savings grow
• Overall synergy
capturemoderates year
by year• Continued
marketinginvestment
while applying
strict RGM
discipline

OPEX• Leverage ERP
to improve
efficiency &continued
capability
development• Indirect
procurement at
CCBSC• Head office
opex controls

Q4 & Full-Year 2015

Others andSubsidiaries

Depreciation• Reflecting• Structuralintensivechange andinvestment
Non-Cokeafter CCEJ
Business
inception(FVEJ & Mikuni•
Change ofServices)manufacturingasset useful
lives in 2016

18.0
B Yen

2018 FY
Comparable
Operating Income
Target*DME: Direct Marketing Expenses

20

Reflection on “Day One” Focus Areas

Q4 & Full-Year 2015

Good progress in four out of five focus areas. Revenue growth still a challenge.

GrowthSome progress in 2015 versus past trends

Speed

Unprecedented speed and scope of change

Synergies

Reduce costs and drive efficiency

Infrastructure

Create optimal operating structure

PeopleBuild a world-class, modernized workforce
21Full-Year 2016
Outlookwww.ccej.co.jp

Full-Year 2016 Plan Overview

Q4 & Full-Year 2015

Operating Income

14 Billion Yen

Revenue Growth+1.4%

Operating Income Margin

2.5%

Macro Environment• Individual consumption showing weakness• Tailwind for input costs; forex, lower energy and commodity prices, etc.

NARTD Market
Environment• Flat to negative market growth• Ongoing channel mix shift• Continued pressure on retail pricing

CCEJ Initiatives• Manage price/mix, appropriate balance between volume and value• Stabilize profitability in important Vending channel• Focus on revenue growth management (RGM)• Continue to extract supply chain synergies and OPEX savings

23

Full-Year 2016 Outlook

Q4 & Full-Year 2015

Vs. PYFY 2016

FY 2016

FY 2016

FY 2015

Reported Estimate
in million yen

One-time
Items

Comparable
Estimate

Comparable
ResultDiff%

Sales Volume*(BAPC) (,000 cases)

313,893-

313,893

305,951+7,942+2.6

Net Revenue

571,300-

571,300

563,162+8,138+1.4

Gross Profit

271,172-

271,172

261,075 +10,097+3.9

Operating Income

14,000-14,00011,902+17.6+2,09824

Drivers of Full-Year 2016 Operating Income Estimate

Q4 & Full-Year 2015

In billion JPY-2.0
GP Impactof Mix & Vol.
+0.1

11.9

Supply Chain- +2.6% volume
Savings
increase- RGM and PTC- Full utilization
enhancementof new- VM stabilization
production(Indoor focus,
capacity; no
exclusive products, expected
inbound tourism,
disruptions
consumer loyalty - Focusing on
program, etc.)
logistics anddistribution
optimization

2015 FY
Comparable
Operating Income
OI Margin: 2.1%

-1.5

+5.7
DME**
• Segmentationand selective
marketinginvestment
while applying
OBPPC andstrict RGM
discipline

OPEX• Personnel, IT
expenses, etc.

-0.9
Others andSubsidiaries• Cycling Sendai
Q1 2015• Non-CokeBusiness(FVEJ & Mikuni
Services)+0.7
Depreciation
Gross increase(1B) offset bychange of useful
lives ofmanufacturingassets (1.7B)

14.0

2016 FY
Comparable
Operating Income
Estimate
OI Margin: 2.5%

* Numbers are rounded**DME: Direct Marketing Expenses

25

2016 Major Initiatives by Function

Q4 & Full-Year 2015

Commercial• Continued focus on Revenue Growth Management (RGM)
through strengthened OBPPC and pricing, terms & conditions• Holistic review of cost-to-serve structure, including vending• Segmentation and selective marketing investment, product,
SKU deployment

SupplyChain• ¥5.7 billion net supply chain synergies• Full utilization of new production capacity• Shift focus to logistics and distribution optimization

SupportFunctions• People development, process standardization, systems
stability, performance culture• OPEX management: review of Corporate overhead• Leverage phase 1, continue phase 2 of CokeOne+ ERP systemdevelopment

26

Key Marketing Initiatives – First Quarter 2016
Sparkling

Focus on Vending• Segmented and selective
investment and PicOS (column
management), continue focus on
expanding indoors• Vending-exclusive products• Deployment of consumer loyalty
program using smartphone
application• Appeal to inbound tourism

Canada Dry
RenewalCoca-Cola Global Campaign“Taste The Feeling”

Schweppes
Grape Sparkling

280ml VM exclusive

Largest ever sampling of Cokeand Coke Zero

Georgia, Tea, Water, etc.
Georgia Deep
Impact launch

Multilanguage
explanation ofmachineoperation andproducts

Q4 & Full-Year 2015

Karadasukoyakacha W(FOSHU tea)
RenewalHina-matsuri (Girls’ Festival)
Promotion

Tsumugi
Oolong Tea
Renewal

Kocha Kaden
CherryRoyal Milk Tea

27

2016 Modeling Reminders

Q4 & Full-Year 2015

 Quarterly profit phasing
Majority of full-year Operating Income generated in third quarter Capital Expenditure
Cold drink equipment, fleet, plant & equipment, etc., including shift of some projects from 2015 to 2016

 Depreciation
2016 plan reflects change of the useful life of machinery and equipment for manufacturing to a range of
7 to 20 years from 10 years, which more realistically reflects the estimated useful lives of these assets. As
a result of this change, FY2016 forecast includes 1.7 billion yen benefit of depreciation expenses.
Capex

Unit: Billion JPY

Depreciation

2015 Actual2016 Plan

2015 Actual2016 Plan

COGS Capitalized

7.3

31.2

7.3

6.8

SG&A Capitalized

29.9

25.3

16.5

17.2

TOTAL

37.2

56.5

23.8

24.0

Note
- Capex includes assets under construction.
- Sendai consolidated from Q2 2015. As a result, 2015 actual doesn’t include Q1 of Sendai.

28

Wrap-Upwww.ccej.co.jp

Focusing on Growth

Q4 & Full-Year 2015

Maintain Roadmap transformational steps & timeframe, focusing on growth

GrowthStabilizing in 2016, more rational pricing

Speed

Unprecedented speed and scope of change

Synergies

Reduce costs and drive efficiency

Infrastructure

Create optimal operating structure

PeopleBuild a world-class, modernized workforce
30

APPENDIX

www.ccej.co.jp

Drivers of Fourth Quarter Operating Income

Q4 & Full-Year 2015

In MM JPY+121
GP Impactof Mix & Vol.

3,887

• 5.1% organic
volume growth
led by newly
launchedproducts• VM weakness &pricing pressure,negative mix fromfood service andregional SM

-703

+719

-605

Supply Chain
Savings

DME**

OPEX

• Increase of labor• Cycling of
supplier related
expenses PY• Lower marketing • In line with plan
expense due toselective
investment inpromo activity &vending machine
placements

+256
Other
Subsidiaries• Sendai• FV East Japan-492
Depreciation
vs. PY• COGS: +93• SG&A: -585

3,181

• Timing of key
account contract
renewal andsupport from CCJC

2014 Q4
Comparable
Operating Income

2015 Q4
Comparable
Operating Income*Adjusted for 263 million in Q4 2014 and 81 million in Q4 2015 non-recurring expenses**DME: Direct Marketing Expenses

32Fourth Quarter 2015 Results

Q4 & Full-Year 2015

• Gross profit margin slightly down due to increase of labor and cycling of PY • SG&A increase led by logistics & distribution,
depreciation, Sendai integration, etc. • Taxes increased due to recalculation of securities sold and change of deferred tax asset
treatment, etc.

2015 Q4

2015 Q4

2015 Q4

2014 Q4

ActualOne-time
items

Comparable

Comparable-

75,373in million yen

Sales Volume(BAPC) (,000 cases)

75,373

Vs. PYDiff%

65,663+9,710+14.8

137,632-

137,632

122,698

14,934+12.2

74,089-74,08964,809

9,280

+14.3

63,543-63,54357,889

5,653

+9.8

60,441-81

60,36054,002

6,357

+11.8

Operating Income

3,102

81

3,183

3,887

-704

-18.1

Profit Before Tax

2,384

168

2,551

3,854

-1,303-33.8

Net Income

1,174

108

1,281

2,619

-1,338-51.1

Net Revenue
COGS

Gross Profit
SG&A

BAPC (Bottler Actual Physical Cases)*Adjusted for 263 million in Q4 2014 non-recurring expenses
Note: 2014 volume was revised in our Q4 2014 earnings announcement as a result of data and system standardization.

33

The Coca-Cola System

Q4 & Full-Year 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 the customer inJapan. A wholly owned subsidiary of The Coca-Cola Company.

Coca-Cola IBS Co., Ltd. (CCIBS)

Providing business consulting services, as well as developing and maintaining theinformation systems to support Coca-Cola System companies in Japan. Jointly owned by
The Coca-Cola Company and all the bottlers in Japan.

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

Providing joint procurement of raw materials, packaging, equipment, indirect material,etc., for Coca-Cola System companies in Japan. Jointly owned by The Coca-Cola Company
and all the bottlers in Japan.

Coca-Cola Customer Marketing
Company (CCCMC)

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

FV Corporation Co., Ltd. (FVC)

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

34

Glossary of Frequently Used Terms

Q4 & Full-Year 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 the beverages forFC. (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(for example,
vending machine, convenience stores channels, etc.).

OBPPC

Abbreviation of Occasion, Brand, Package, Price, Channel. A segmentation strategy tailored to consumption opportunities in five areas: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.

PicOS

Abbreviation of Picture of Success, which outlines standards and example for making ideal market place execution and market place
activities including product deployment, CDE and advertisement placement, vending machine faces and column management, etc.

RTM

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

35

THANK YOU
Coca-Cola East Japan
Q4 & Full-Year 2015 Earnings Call
February 15, 2016
<Inquiries>
Investor Relations
Coca-Cola East Japan
ir@ccej.co.jp+81-3-5575-3797
http://investor.ccej.co.jp/

www.ccej.co.jp
www.facebook.com/cocacolaeastjapan/