2007-2009business_plan by geoqureshi

VIEWS: 7 PAGES: 48

									     December 21st, 2006
Coca-Cola West Holdings 2579
    Contents

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          Coca-Cola West Group Corporate Vision

      Creating our Future Beverage Business

CCWH will…
 • Provide the highest quality products to our consumers and business
   partnerships to our customers
 • Value the work satisfaction and lifestyle of each associate
 • Meet shareholder needs by achieving sustainable growth
 • Strengthen relationships with the community and our responsibility to
   the environment
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                                                                                C
                                                                            A
                                             A




                               Non-Coca-Co aBus ness
                               Non-Coca-CollaBusiiness
                Distribution




                                           Log s cs
                                       CCW Logiisttiics
                Production




                                CCW Daisen Products
                               Kinki Coca-Cola Products
                                   CCWJ Products          Mikasa CCBC
                                  Mikasa Service
                Mikasa area




                                                                            CCWH
                                  M kasa Beverage
                                  Miikasa Beverage
                                       Serv ce
                                       Serviice
                                      Cadiac




                                                          Kinki CCBC
                Kinki area
                                    Nesco
                                 Kansai Beverage
                                     Service
                                 CCWJ Cunstomer
                                    Service




                WJ area




                                                          CCWJ
        ▪
        ▪
        ▪

            ▪
                                  CCWJ Vending

    
                                Nishinihon Beverage



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                       Company name                                               Main territory
CCE            Coca-Cola Enterprises                     North America(78%), Canada(98%), Part of Europe
FEMSA          Fomento Economico Mehicano                Latin America(Mexico, Argentina, Part of Brazil etc)
CCHBC          Coca-Cola Hellenic Bottling Company       Europe(26 countries)
Amatil         Coca-Cola Amatil                          Australia, Indonesia, Korea, Fiji, NZ etc
CCBPI          Coca-Cola Bottlers Philippines            Philippines
Swire          Swire Beverages                           Taiwan, Part of China, 10 states of America
Arca           Embotelladora Arca                        Part of Mexico
Continental    Grupo Continental                         Part of Mexico
CCI            Coca-Cola Icecek                          Turkey, 6 countries of Eurasia
Andina         Embotelladora Andina                      Part of Chili, Brazil and Argentina
CCS            Coca-Cola Sabco                           East-South Africa(7 countries), Asia(5 countries)
Consolidated   Coca-Cola Bottling Company Consolidated   Part of North America                                  10
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                                                      2005       2006        2009      Change
              Financial Data                Unit
                                                                                        vs.06
                                           Million
              Sales volume                 cases
                                                         188        186        200         +8%

                                           Billion
              Net revenues                  yen
                                                         417        413        440         +6%
                                           Billion
            Operating income                yen
                                                           17         13         25       +91%

       Operating income margin               %            4.3        3.2        5.7       +2.5pt

                    ROA
       recurring income on total asset
                                             %            5.7        4.2        8.0       +3.8pt

                    ROE
         net income on equity capital
                                             %            4.2        2.6        5.8       +3.2pt
                     EP                    Billion
              Economic Profit               yen
                                                          1.0        1.9        4.5

                                           Billion
              Free Cash Flow                yen
                                                          8.9        4.0      12.7

※ The above(2005) is based on the CCWJ group and Kinki’s annual actual figures total, after inter-company’s
 1)
    transaction among group companies.
※ The above(2006) is based on the CCWG annual performance forecast announced as of Aug. 8, 2006 and
 2)
     Kinki’s 1H actual figures total, after inter-company’s transaction among group companies.
EP : Real earnings (company earnings after deducting the cost of capital used to create profit) calculated after
deducting capital costs from operating income after taxes ( capital cost is 4.2%)   13
                     Maximize          Leadership in
  Return to
                      Value           the KO system
Stakeholders
                                         in Japan
                   Market Execution


               Expansion Efficiency


                Group Restructuring

     Strategic Partnership with TCCC/CCJC
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                                            CCCMC
                                         Coca-Cola Customer
                                        Marketing Company




   CCVP                CCVP                                       CCNBC
                                                                  CCNBC
                    Coca-Cola Vending                            Coca-Cola National
Coca-Cola Vending                                                 Coca-Cola National
                      Partnership                                  Beverages
  Partnership                                                       Beverages




                                            CCIBS
                                            CCIBS
                                         Coca-Cola Integrated
                                          Coca-Cola Integrated
                                        Business Solutions
                                         Business Solutions
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  2006                                                                                                 2009
Prospect                                                                            Operators M&A      Plan
                                                                                        Other
                                                           Cost Reduction
                                      New Channel
                Existing Channel     Chilled and other
             Increase sales volume



                                           • Personnel-expenses reduction -500             2.6 BY
                                           • Centralized procurement                       0.8 BY
                                                – Vending machine/Trade fixture
                                           • Manufacture and distribution cost reduction
              •Vending           6.4 BY           Increase in efficiency                   1.3 BY
              •SM/New Channel   1.0 BY            Reduction of goods abandonment 0.2 BY
              •CVS              0.2 BY     • Business System charge fee           0.9 BY
              •Retail           1.7 BY
    SG&A      •Food Service     0.3 BY
                                                                                                      SG&A
  169BY       •Other Channel    0.2 BY
                                                                                                      168 BY
  Ratio of
                                                                                                      Ratio of
SG&A 41
                                                                                                    SG&A 38
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                                                                                                                             MM JPY
                                                                                                                              2006
             1996        1997           1998      1999       2000      2001      2002      2003      2004       2005
                                                                                                                          ( prospect)
Net
Revenues    113,490      115,408        117,991   164,731    207,827   226,111   247,737   240,825   253,248    245,874     333,400
Operating
Income       10,481          10,737      12,533     15,160    17,449    16,634    16,704    19,638    16,860     11,830      12,400
Recuring
Income       11,273          11,054      12,510     15,889    18,516    16,021    17,005    19,895    17,065     12,256      13,300
Net
Income        5,721           5,428       5,872     6,823      5,700     1,420     7,086     9,380     8,564      7,305        7,400


                                                                                                     2006/7/1
                                                               2001/4/5                              Integration with
                                                               Make Mikasa CCBC                      Kinki CCBC
                                                               subsidiary
                                      1999/7/1:
                                      Merged with
                                      Sanyo CCBC

               Operating
               Income


            Net Revenues




                    MM JPY
MM JPY
   30
  Operating Income                Operating Income Ratio    Net Assets / Equity Ratio
         Operating income ratio
                                         Operating income                           Equity Ratio



                                                                     Net Assets




MM JPY
                                                            MM JPY
  ROA      ROE                                               EPS     PER

                                                                                  PER

              ROA


           ROE
                                                                          EPS



                                                             JPY                                   times
                                                                                                      31
            Capital Injection




                                         Coca-Cola
                                     National Beverages     Coca-Cola West
                                     Company, Limited      Holdings Company,
                                          (CCNBC
              Coca-Cola Tokyo                                    Limited
            Research & Development                               CCWH
               Company, Limited
                   CCTR&D                 Coca-Cola
                                     Integrated Business
  The
                                          Systems,
Coca-Cola                             Company, Limited       Coca-Cola
Company                                     CCIBS)          Central Japan
 TCCC                                                      Company, Limited
                                                                CCCJ )
                Coca-Cola                Coca-Cola
                                     Customer Marketing
              (Japan)Co.,Ltd.        Company, Limited
                  CCJC                    CCCMC              10 Coca-Cola
                                                                Bottlers
                                                                CCBC
                                           FV
                                       Corporation
                                         (FVC)

                                      Investment by
                                            ,      ,
and Bottlers
               32
    Coca-Cola West Holdings Co,, Ltd. (CCWH)                      Coca-Cola National Beverages Co., Ltd. (CCNBC)
In July, 2006, Coca-Cola West Japan Company, Limited          Established in April 2003 by joint investment of The Coca-
and Kinki Coca-Cola Bottling Company, Limited merged the      Cola Company and its Japanese bottling partners. Began
management of both companies by establishing a joint          initial operations in October 2003. Responsible for centralized
holding company CCWH.                                         procurement of ingredients and packaging materials, national
                                                              demand/supply planning activities, and manufacturing and
    The Coca-Cola Company (TCCC)
                                                              supply of certain finished beverage products to the bottling
Established 1919 in Atlanta, Georgia. Carries the rights to   partners.
grant a license to manufacture and sell Coca-Cola
                                                                  Coca-Cola Beverage Services Co., Ltd (CCBSC)
products to the bottlers. TCCC (or its subsidiary) makes
franchise agreements with the bottlers.                       Established through joint investment by The Coca-Cola
                                                              Company and its bottling partners in Japan, and the company
    Coca-Cola (Japan) Co., Ltd. (CCJC)
                                                              will begin operations on January 1, 2007. It is charged with
Established 1957 in Tokyo, as “Nihon Inryo Kogyo K.K.,” a     providing business consulting services to the Coca-Cola
wholly-owned subsidiary of The Coca-Cola Company. The         system in Japan, as well as developing and generally
company name was changed in 1958 to Coca-Cola (Japan)         maintaining the information systems to support such work.
Company, Limited. CCJC is responsible for marketing
                                                                Coca-Cola Customer Marketing Company (CCCMC)
planning as well as manufacturing and distribution of
concentrate in Japan.                                         Established through joint investment by Coca-Cola (Japan)
                                                              Co., Ltd. and all of its bottling partners in Japan, and the
   Coca-Cola Tokyo Research & Development Co., Ltd.
                                                              company will begin operations on January 1, 2007. It is
(CCTR&D)
                                                              charged with holding business negotiations with major retailer
Established in January 1993 as a wholly-owned subsidiary      outlets, such as nationwide convenience stores and
of The Coca-Cola Company. Since January 1995, carries         supermarket chains, as well as developing proposals for sales
out product development and technical support to respond      promotions and storefront activities.
to the needs of the Asian region.
                                                                  FV Corporation (FVC)
    Coca-Cola bottlers (CCBCs)
                                                              Jointly established in May 2001 by CCBCs and CCJC. FVC
There are 12 bottlers in Japan, which are responsible for     carries out sales negotiations with national chain vending
selling Coca-Cola products in the respective territories.     operators, and deals with non-KO products as well as KO
products.
            33
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    as of 2007/1/1
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The plans, performance forecasts, and strategies appearing
in this material are based on the judgment of the management
in 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 those
listed below.
         - Intensification of market price competition
         - Change in economic trends affecting business climate
         - Major fluctuations in capital markets
         - Uncertain factors other than those above
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