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Second Quarter 2025 Earnings Presentation August 1, 2025 Coca-Cola Bottlers Japan Holdings Inc. Calin Dragan, President Bjorn Ivar Ulgenes, Vice President & CFO (Posted to CCBJH website August 1, 2025)
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2 Second Quarter 2025 Earnings Presentation Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) New Strategic Business Plan Vision 2030 1H 2025 Results
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3 Today’s Highlights Extremely strong performance in 1H business income, up 4.3 billion yen vs previous year. Key measures such as price revisions and transformation progressing ahead of plan. In vending business, fixed assets reevaluated for optimal future capital allocation; non-cash impairment losses recorded. Full-year earnings forecast revised, targeting business income of 23 billion yen, 15% higher than initial plan. Formulated new Strategic Business Plan: Vision 2030, to further increase shareholder value. By 2030, target business income of 80 billion yen, approximately 2x historical peak, and double digit ROIC, approximately 2x cost of capital. Plan includes new elements such as further collaboration with Coca-Cola Japan Company and joint formulation of long-term growth strategy, multi-business unit operations, restructuring vending profit base and running it with the mindset of world's largest beverage retailer. Announced shareholder return programs, including largest share buyback program in our company's history, totaling 150 billion yen.
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1H 2025 Results
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5 Strong revenue and BI growth, steady progress in underlying performance 1H Results (vs 2024) 1H 2025 Actual 1H 2024 Actual Change YoY YoY Revenue 417,942 411,455 +6,488 +1.6% Sales Volume (Million Cases) 230 232 -2 -1% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 228 230 -2 -1% COGS 234,529 230,251 +4,278 +1.9% Gross Profit 183,413 181,204 +2,210 +1.2% SG&A 181,599 183,971 -2,373 -1.3% Business Income (Loss) 1,535 (2,791) +4,326 - Operating Income (Loss) (92,170) 1,207 -93,376 - Net Income (Loss) Attributable to Owners of Parent (65,892) (297) -65,595 - EBITDA* 24,152 20,075 +4,078 +20.3% Unit: Million JPY *EBITDA = Business Income + Depreciation Please refer to appendix for Q2 (April - June) results.
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6 Accelerated earnings growth driven by top-line expansion and transformation benefits, profit up 4.3 billion yen vs previous year 1H Business Income Drivers (vs 2024) *1 Includes changes in marginal profit, variable cost, IFRS sales reduction, etc. Unit: B JPY (Rounded to nearest unit) 1H 2024 Actual Manufacturing (excl. Utility Costs) DME (Direct Marketing Expense, fixed only) Volume, Price & Mix*1 Others Commodity & Utility Costs • Wholesale price per case improved with price revisions • -1% volume decrease • Changes in consumer trends influencing channel mix • Targeted marketing investments with focus on ROI • Strengthened pre- peak season activities • Impact of decrease in manufacturing volume • Effects of cost saving measures at manufacturing sites such as reduction of energy and water consumption 1H 2025 Actual Transformation (Unit: B JPY) 1H 2025 Actual vs 2024 Capex*2 9.5 -0.1 Depreciation 22.6 -0.2 *2 Capex for real estate rental properties under IFRS 16 not included in above amount -2.8 +1.5 +4.8 +2.6 -0.2 -2.0 +0.8 -1.7 • Commercial and supply chain delivered greatest benefits • Back-office and IT also delivering benefits • Impact of increase in logistics costs and auto/operation site- related expenses (excl. transformation effects) • Major impact from commodity price rise • Other impact include FX and utility costs rise
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7 Effective commercial measures drove sales volume above market growth and continued to improve wholesale revenue per case 1H NARTD Sales Trend (vs 2024) Sales Volume: -1% Note: Volume does not include alcohol. Wholesale revenue per case does not include DFR (deduction from revenue). Some inconsistencies with volume data provided in past presentations may be present due to standardization of volume and revenue calculation. Channel Volume Wholesale revenue per case (JPY) Supermarket (SM) -2% +60 Drug & Discounter (D&D) +1% +65 Convenience Store (CVS) -5% +56 Vending (VM) -5% +103 Retail & Food Service (R&F) +3% +29 Online +15% +29 Category Volume Sparkling +1% Tea +2% Sports -5% Water -10% Coffee -2% Juice +5% Due to marketing efforts this year sales volume outperformed the market and decreased only 1% despite the impact of price revisions in October last year and cycling effect of the full renewal of Ayataka last year. Wholesale price per case improved by double-digit yen in all channels thanks to the price revisions. D&D benefited from medium PET coffee contribution. CVS volume affected by promotional activities. VM volume were impacted by price revisions, particularly water and coffee. R&F supported by juices and sparkling; online driven by tea. Sparkling growth driven by Coca-Cola and Coca-Cola Zero. Tea growth led by Ayataka and Kocha Kaden. Sports, water, and coffee decreased volume due to price revisions effects. Please refer to appendix for sales volume by package. Please refer to appendix for Q2 (April - June) sales volume. 26% 24% 7% 11% 20% 8% 21% 17% 14%21% 19% 6% 1%
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8 Reflecting impairment loss and other items. BI revised upward, target 11 billion yen growth vs previous year FY2025 Guidance Revised Revised FY forecast reflects vending business fixed asset impairment and changes in Coca-Cola Japan Company marketing investment methods due to evolving market dynamics. Business income revised up 15% from initial plan; accelerating 1H profit growth trend to meet ambitious targets. FY2025 Revised Plan Change YoY YoY Revenue 906,100 +13,419 +1.5% Sales Volume (Million Cases) 503 +3 +0.5% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 498 +2 +0.4% COGS 491,100 +869 +0.2% Gross Profit 415,000 +12,550 +3.1% SG&A 390,800 +1,266 +0.3% Business Income (Loss) 23,000 +10,954 +90.9% Operating Income (Loss) (67,100) -80,490 - Net Income (Loss) Attributable to Owners of Parent (48,500) -55,809 - EBITDA* 63,900 +6,394 +11.1% *EBITDA = Business Income + Depreciation Change vs Initial Plan Vs Initial Plan - - - - - - -800 -0.2% +800 +0.2% -2,200 -0.6% +3,000 +15.0% -85,100 - -59,500 - -2,000 -3.0% Unit: Million JPY
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New Strategic Business Plan Vision 2030
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10 Tremendous progress toward Vision 2028 with strong BI growth Progress toward Vision 2028 Over past 2 years, earnings improved fundamentally; BI exceeded targets with 26+ billion yen increase vs 2022 Key measures outlined in Vision 2028 have delivered exceptional results: Achieved top-line growth with solid profitability. Transformation delivered substantial recurring cost savings and reinforced business foundation Announced shareholder return program under Vision 2028 in November 2024, driving capital efficiency 2025 BI trending above initial plan. Guidance revised upward to aim even higher Major achievements under Vision 2028 (FY2025 Revised Guidance vs. FY2023 Actual) ✓ BI ✓ ROIC ✓ Transformation cost savings ✓ Shareholder returns Approx.10x Over +2 pts Approx. 10 B JPY Comprehensive shareholder return program announced Business Income (B JPY) 12 0 2023 ・・・・ 10 -5 2024 20 2025 2028 Plan Initial plan 2 23 -14.4 2022 Revised plan Vision 2028 45~50 Initial plan Initial plan
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11 Revamping Vision 2028 to address new opportunities and challenges Vision 2028 Upward Revision Summary Ongoing Vision 2028 revised upward, launching new Strategic Business Plan Vision 2030 Positive business operations outlook going forward Strong determination confidence to set and achieve higher ambitions Progress toward a phase of higher shareholder returns Developing strategies to unlock further transformation through enhanced use of data and technology Deepening partnership with Coca-Cola Japan Company; jointly formulating long-term growth strategy Establishing operating structure centered on multiple Business Units with clear accountability Benchmarking global bottlers and redefining strategic direction for each Business Unit Executing unprecedented shareholder returns; exploring potential to further enhance shareholder value Growth opportunities and challenges identified through Vision 2028, leading to new measures
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12 Accelerating expansion of shareholder returns 5 30 50 53 57 90~100 140~150 1 2 3 ・・・ ・・・ 10+ 2023 2024 2025 2026 Plan 2028 Plan 2030 Plan 0 150 ・・・ ・・・ ・・・ ・・・ ROIC, % Dividend per share, JPY Share buyback (cumulative), B JPY Forecast for capital efficiency and shareholder return metrics Announced comprehensive shareholder return measures in November 2024 Dividend per share in 2030: - 140~150 JPY Share buybacks - 30 B JPY from November 2025 - Cumulative 150 B JPY by 2030 Vision 2030 accelerates existing initiatives and plan for largest shareholder return measures in our corporate history Updated dividend policies and shifted to progressive dividends Share buybacks of 30 B JPY Vision 2028 Upward Revision Summary 12 7+
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13 Elevating 2028 targets and setting new heightened new 2030 targets Vision 2028 Upward Revision Summary 2028 targets are revised upward, new 5-year (2026-2030) Strategic Business Plan Vision 2030 formulation 2030 targets of BI 80+ billion yen (2x record-high), ROIC of 10+% (2x WACC) Implement largest-ever shareholder return plan by significantly improving key business performance indicators 2023 Vision 2028 Vision 2030 2026 2028 2030 80+ 45~50 50~55 2 Overview of Strategic Business Plan upward revision (Business Income, B JPY) 0 Original Plan New Plan 2030 Key targets CAGR +2~3%1+ T JPY 80+ B JPY (BI margin 8%+) 30~35 B JPY 10+ % Cumulative 150 B JPY 140~150 JPY Revenue Transformation Cost Savings ROIC BI (BI margin%) Dividend per share Share Buyback Volume CAGR +0.5~1%
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14 Achieving company-wide goals through greater transparency and accountability for business units to improve market execution and profitability Vending OTC Food Service Vision 2030: Targeting superior profitability and capital efficiency Revising entire business and rebuilding profit foundation. Focus on profitability and asset efficiency Improving data utilization and executing strategies for enhanced competitiveness Continuing digital transformation Executing topline growth identifying growth opportunities Investing in marketing with diligence on ROI Strengthening coordination with key customers Reinforcing customer approach to expand drinking opportunities Strengthening approach to growing segments Optimizing equipment and assortment for profitability Supply Chain Back office / IT Leveraging strong supply chain base and accelerating efficiency Promoting data-driven management via company-wide digital-transformation ESG/Human capital/Financial foundation Strengthen foundation for sustainable business New Strategic Business Plan to further enhance shareholder value New Strategic Business Plan Vision 2030
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15 Rebuild profit base and lead the business with “retailer” mindset Commercial Strategy: Vending Enable optimal future capital deployment by re-evaluating fixed assets to recognize non-cash impairment losses. This has no impact on business operations and accelerates efforts to rebuild the profit base. Investments in technology infrastructure are made considering ROI. Optimize life cycle cost of vending machines, maximize asset utilization. Accelerate collaboration based on partnerships to enhance competitiveness and efficiency across the entire business. Fully leverage technology platforms and consumer insights from big data and vending machines to maximize the impact of all initiatives through data-driven decision-making across all business activities. Expand digital marketing initiatives utilizing Coke ON app. Execute location optimization and fixed cost reduction—including promotional spending—based on profitability analysis of individual vending machines. Vending Machines in Operation (in our area) About 650 thousand Coke ON Downloads (as of end of July, 2025) 65+ million Location selection Assortment Pricing Route Productivity Inventory Management … Boost profitability and competitive edge through transformation driven by data and technology Enhance capital efficiency to optimize capital allocation
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16 Aim for global bottlers benchmarks to improve returns across segments Commercial Strategy: OTC, Food Service Drive strong top-line growth by accurately capturing consumer trends through data in densely populated urban areas and executing ROI-focused, targeted marketing initiatives. Evolve pricing strategies by integrating them with category and packaging strategies, applying insights gained from past price revisions. Invest in the growth of core brands and categories using digital tools. Strengthen sales in the rapidly growing online channel. Expand strategic partnerships with customers, capitalizing on our solid presence in the Food Service channel and the strength of Coca-Cola System. Capture new demand by efficiently and effectively approaching high-growth, emerging business formats. Optimize equipment investments and review commercial terms to promote profitability and capital efficiency. Strengthen proposal capabilities by enhancing organizational capabilities and leveraging technology. Lead revenue and profit growth through execution of top-line strategies focused on key opportunities Expand business opportunities by strengthening customer proposal capabilities to promote increased beverage consumption occasions Food ServiceOTC
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17 Drive cost reduction and reinforce foundation through digital transformation Supply Chain Strategy, Back-Office and IT Strategy Backoffice/IT Optimize end-to-end supply chain processes through full-scale digital enablement Continue building a solid foundation to further advance data-driven management Reduce logistics costs and improve capital efficiency by promoting the "local production for local consumption model.” Enhance S&OP process accuracy to achieve stable supply at low cost and reduce/optimize product inventory levels. Further reinforce future logistics network through initiatives such as establishment of new logistical location such as Integrated Distribution Center (IDC). Supply Chain Build new technology foundation for future growth by integrating various IT systems and data assets. Improve operational efficiency through digital utilization - driving fundamental business process reengineering. Promote data-driven decision-making by deepening collaboration with partners and achieving world-class operations.
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18 Prioritize capital efficiency and enhance performance, delivering record- high shareholder returns Financial Strategy, Shareholder Return Measures • Strategies focused on enhancing shareholder value • Continue optimizing the balance sheet, that will enable ambitious shareholder returns • Execute flexible shareholder return in line with market dynamics Enhanced Capital Efficiency Vision 2030 Shareholder Return Measures Target dividend per share of140~150 yen by 2030 Increase dividends based on progressive dividend policy 40% payout ratio and 2.5% DOE 1 ✓ Consider optimizing financial leverage to contain capital costs ✓ Optimize balance sheet: Improve fixed asset and divest idle assets and strategic shareholdings to streamline asset base. Improve product inventory turnover Planned total share buyback of 150 billion yen 30 billion yen share buyback to begin in November 2025 Cumulative share buyback of 150 billion yen by 2030 2 Target ROIC of 10%+ (approx. double WACC) by 2030 Promote shareholder returns by generating stable cash flows ✓ Make carefully selected capital investments within the scope of depreciation (30–35 B JPY/year*) *Investments amounts related to lease transactions subject to IFRS 16 are not included in the above figures
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19 Summary Vision 2030 sets bold new targets, aims for significantly enhanced profitability and capital efficiency to drive shareholder value through the largest shareholder return program in our company history. Our confidence in continued growth is underpinned by the substantial performance improvements achieved to date, our consistent track record of delivering on targets, robust foundations for growth, and lessons learned along the way. Strongly committed to achieve Vision 2030 Business Income 80+ B JPY ROIC 10+ % Dividend per Share 140~150 JPY Share buyback Cumulative 150 B JPY (2030 Targets)
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THANK YOU Investor Relations Coca-Cola Bottlers Japan Holdings Inc. ir@ccbji.co.jp https://en.ccbj-holdings.com/ir/
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Appendix
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22 Q2 QTD (April - June) Results (vs 2024) Q2 2025 Actual Q2 2024 Actual Change YoY YoY Revenue 228,182 224,926 +3,256 +1.4% Sales Volume (Million Cases) 127 128 -2 -1% NARTD (Non-alcoholic ready to drink) Beverage Volume (Million Cases) 125 127 -2 -1% COGS 127,863 125,164 +2,700 +2.2% Gross Profit 100,319 99,763 +556 +0.6% SG&A 92,231 94,683 -2,452 -2.6% Business Income 8,033 5,056 +2,978 +58.9% Operating Income (Loss) (82,101) 4,277 -86,377 - Net Income attributable to owners of parent (Loss) (59,438) 2,600 -62,038 - EBITDA* 19,336 16,336 +3,000 +18.4% Unit: Million JPY *EBITDA = Business Income + Depreciation
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23 NARTD Sales Trend by Channel / Category / Package (vs 2024) Q2 QTD (April to June) Sales Volume -1% Channel Volume Wholesale revenue per case (Yen) Supermarket (SM) -3% +56 Drug & Discounter (D&D) Flat +61 Convenience Store (CVS) -7% +60 Vending (VM) -6% +103 Retail & Food Service (R&F) +4% +25 Online +19% +29 Category Volume Sparkling +1% Tea -2% Sports -4% Water -10% Coffee +1% Juice +4% 1H (Jan to June) Package Volume S-PET Flat M-PET +39% L-PET -8% Can Flat Bottle Can -6% Syrup +3% Powder +1% Package Volume S-PET -2% M-PET +46% L-PET -9% Can Flat Bottle Can -7% Syrup +3% Powder +4% Q2QTD (April to June) By Channel By Category By Package S-PET: Below 700ml / L-PET: Above 1.5L Note: Volume doesn’t include alcohol. Wholesale revenue per case doesn’t include DFR (deduction from revenue). Some inconsistencies with the volume data provided in past presentations may be expected as a result of standardization of volume and revenue calculation. 41% 3% 19% 12% 5% 12% 4% 42% 4% 20% 11% 4% 12% 3% 5% 21% 18% 14% 20% 18% 7% 1% 26% 24% 9% 11% 19% 7%
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24 1H Market Share and OTC Retail Price Trends (vs 2024) Source: Coca-Cola Japan Internal Estimate (All Japan) OTC Retail Price (January to June, JPY per bottle) vs Market Average vs 2024 Small PET +7.9 +4.4 Large PET +34.1 +5.5 Source: Intage SRI+ soft drink market Small PET (351~650ml), Large PET products (1.251L~) CCBJH Area January - June 2025 Market Ave: CCBJH avg. retail price (bottles) / market avg. retail price (bottles) YoY: CCBJH retail price (bottles) / previous year actuals Market Share (January to June, vs PY , Pts) Value Volume Total Flat +0.5 Vending (VM) +0.2 +0.7 Over the Counter (OTC) -0.4 +0.2 Total channel value share remained flat vs previous year, despite a persistently competitive environment. VM value share continued to grow with solid market share foundation, capture demand despite contracting market. OTC value share dropped slightly, impacted by channel and package mix, but volume share continued to grow with improved competitiveness. Our products maintained a price premium over market average. OTC retail prices for small PET and large PET grew with October price revisions in the previous year. Notably, OTC retail price for large PET grew by about 20 yen over past two years, with the series of price revisions. Of Which Of Which
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25 1H Marketing Initiative Review CORE INNOVATIONS MARKETING EXPERIENCE Osaka-Kansai EXPO Portfolio Promotion thru Coke ON & Receipt Glass Bottle Coke Yokocho in Osaka GEORGIA Clear Black Minute Maid Zero Sugar Lemonade Coke & Chicken “# CoChiLu” Aquarius Core Renewal + New Campaign "CHARGE & GO" Ayataka & Onigiri / Koi-Ryokucha Renewal
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26 Q3 Marketing Initiative Highlights CORE INNOVATIONS MARKETING EXPERIENCE Ayataka Café Green Tea Lemonade FANTA Amazuppai Lemon Yakan Barley Tea Summer Campaign Coke Summer Campaign with Under-The-Cap promotion Coke & Chicken “# CoChiLu” Promotion Coke -2℃ Vending Machine
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27 Q2 ESG Initiatives --------------Values--------------------------------------------------------------------------------Major Initiatives --------------------------------------------------------------- Environment / Local Community Initiatives Community Development Reduce Environmental Impact Business Expansion Enhancing Human Capital/ Promoting DE&I External Evaluation Reducing waiting time and streamlining loading operations: The Beverage Industry Study Group reports addressing the 2024 logistics challenge. Expanding horizontal recycling networks for used aluminum cans and PET bottles In partnership with beverage manufacturers, 45 PET bottle collection boxes installed at the Osaka-Kansai Expo 2025 site, enabling horizontal “bottle-to- bottle” recycling. Selected as a constituent stock of the SOMPO Sustainability Index Ranked No. 1 in the food category in the "Best 100 Companies for Women in Japan“ for two consecutive years. Joined the Valuable 500, International Initiative Promoting Empowerment of People with Disabilities. Team “Uni-Lab” officially launched to create diverse opportunities for people with disabilities. To promote flexible work styles, minimum working hours on flex days reduced from one hour to zero, enabling three days off per week. Pride Month campaign promoting LGBTQ+ understanding conducted in collaboration with FamilyMart.
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29 The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the management of Coca-Cola Bottlers Japan Holdings Inc. (CCBJH or Company) in view of data obtained as of the date this material was released. These forecasts may differ materially from actual performance due to risks and uncertain factors such as those listed below. Risks and uncertain factors are not limited to the items listed below. They are also included in our annual securities report, or “Yuka Shoken Houkokusho”. • Agreements with The Coca-Cola Company and Coca-Cola (Japan) Company Limited. • The quality and safety of products • Market competition • Natural environment, such as climate, disaster, water resources, etc. • Legal environment • Leakage or loss of information • Change of economic conditions, such as personal consumption, currency exchange rates, prices of raw materials, fair value of assets, etc. • Business integration, streamlining and optimization of business processes, etc. • Uncertain factors other than those above The information in this presentation is provided for informational purposes and should not be construed as a solicitation of an investment in our securities. CCBJH undertakes no duty to update any statement in light of new information or future events. You should rely on your own independent examination of us before investing in any securities issued by our company. Forward-looking Statements