2007 2009 business plan
TRANSCRIPT
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Coca-Cola West Group(CCWG)
2007-2009 Business Plan
Coca-Cola West Holdings(2579)
Contact PR・IR GroupTEL 81-92-283-5718 FAX 81-92-283-5729
URL http://www.ccwh.co.jp/ E-mail [email protected]
December 21st, 2006
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Whole Image of Three Year Business Plan
Description of Three Year Business Plan
Ⅰ.Environmental Analysis
Ⅱ.Corporate Vision
Ⅲ.The View Of Management
Ⅳ.Vision
Ⅴ.Target
Ⅵ.Strategy
ContentsContents
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Whole Image Of
Ⅰ.Environmental Analysis
Ⅲ. The View Of Management
Outside: Changes at the speed exceeding predictionInside: Go to the nest stage for growth
Ⅱ. Corporate Vision
Creating our Future Beverage Business
Corporate Governance
Corporate Social Responsibility
Group Management
Ⅵ. Strategy
I. Evolution to the new bottler by strategic partnershipstrengthening with TCCC/CCJC
II. Expansion of the sales and the profit by the"Consumer View" activity exceeding competitors
III. Functional strengthening, increase in efficiencywhich harnessed management integration
IV. Strengthen a capability base of talented associatesand organizations
Aspirations
High quality of work
Maximizing the value tothe consumers
Return it to employees,shareholders,
and local communities
Work satisfaction andgrowth of each associate
Ⅴ.Target (2009)Sale Volume 200Net Revenue(①) 440Operation Income(②) 25Ratio (①/②) 5% more
ROA 8% moreROE 5% moreEP 4 moreFCF 12 more
Ⅳ. Vision
The strong confidential relationof employee and company
Change to the 「Consumer View」
To the leading bottler in the world・Growth exceeding competition overwhelmingly・Establishment of a steadfast profit base
Effect major expansion ofvolume and net sales
Million Cases, Billion Yen
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What is ?
Wing : We 「will flap」 forcibly with ten years, 20 years, and 30 years
West + ing : 「CCWG」 always develops and continues evolving
We + ing : 「Each of us」 always develops and continues evolving
Win : 「 Win」 for fighting with competitors on consumer view
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Ⅰ.Environmental Analysis
Environment which surrounds CCWG
2.Inside1.Outside
Arrival of the low-birthrate-and-longevity ageArrival of the low-birthrate-and-longevity age
Expansion of a cost rise riskExpansion of a cost rise risk
(2) Soft drink market
(1) Macro environment
(society, economy, labor, and working)
Competition intensification andreorganization in retail
Competition intensification andreorganization in retail
Change of consumer structureChange of consumer structure
Structural change of marketStructural change of market
(1) CCWG
(2) Coca-Cola system
Increase in retired employeesIncrease in retired employees
Examination of a next-generation model in CCNBCExamination of a next-generation model in CCNBC
Improvement of response capabilities to
consumer and cost reduction by the functionalintegrated company
Improvement of response capabilities toconsumer and cost reduction by the functional
integrated company
Establishment of CCCMCEstablishment of CCCMC
The largest bottler in JapanThe largest bottler in Japan
Increasing the number of a Vending Machine(VM)Development of advanced VM based on IT
Increasing the number of a Vending Machine(VM)Development of advanced VM based on IT
Slow down in sales volume and operating profit(Main listed bottlers)
Slow down in sales volume and operating profit(Main listed bottlers)
Diversification of consumer needsDiversification of consumer needs
Competition intensification in the soft drink industryCompetition intensification in the soft drink industry
Changes at the speed exceeding prediction
Strengthening Relations with TCCC/CCJCStrengthening Relations with TCCC/CCJC
Go to the nest stage for growth
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Ⅱ. Corporate Vision
CCWG Corporate Vision
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 responsibili ty tothe environment
Creating our Future Beverage BusinessCreating our Future Beverage Business
- Coca-Cola West Group Corporate Vision-
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Ⅲ.The view of management
Aspiration
High quality of work
Maximizing the value to the consumers
Return it to employees,shareholders,
and local communities
Work satisfaction and growth of each associate
Effect major expansion of volume and net sales
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Ⅲ. The view of management
The view of management of CCWG
Win the trust of all its stakeholders-consumers,customers and society through daily activity
Carry out the corporate citizenship
All employees work being conscious of society
Activity that both Improvement of corporate value and development of society are realizedsimultaneously
Activity for being called "a good company" from all stakeholders
Corporate
SocialResponsibility
For growth of CCWG, it is undertaken just like one company Each company realizes "management which carried out independence"
※What is "management which carried out independence“?
Each company manages actively with the basis of required sufficient authority andresponsibility, and a commitment is attained
Each company manages by self-conclusion, and corporate value of CCWG is raised
GroupManagement
Increase in efficiency of management and speeding up of decision-making.
Avoid of double decision-making. The simple organization design which attains increase inefficiency and speeding up of decision-making
Realize clarification of responsibility and high transparency
Clarification of responsibility:The organization design with clear role and result whichshould be attained, and maintenance of a clear authority standard
High transparency:Intelligence sharing of the same quantity and quality
Strengthening of a supervisor function
Strengthening of the monitoring function about decision-making and execution based onindependence of each company
CorporateGovernance
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Management organization(07)
Turned PDCA cycle effectively toward CCWG target
▪ PDCA cycle of each company・・・Strengthen of activity in a market and improve the expertise
▪ The function near a market point of contact promotes PDCA per area
▪ The high function of expertness promotes PDCA per function
※ We will reorganize functional companies further in the future▪ PDCA cycle of a group strategy・・・promote the total optimal group management by the resource allocation
(authority transfer) and monitoring (result report) to each company
Effect major expansion of volume and net sales
Ⅲ. The view of management
Group Management
CCWJ area Kinki area Mikasa area DistributionProduction
K a n s a i B e
v e r a g e
S e r vi c e
N e s c
o
Ki nk i C o c a - C ol a P r o d u c t s
C a d i a c
Ni s h i ni h onB e v e r a g e
C C W
J P r o d u c t s
C C W J V e n d i n g
C C W
L o gi s t i c s
L o gi s t i c s
Mi k a s a
Mi k a s aB ev er a g e
B ev er a g e
S er v i c
e
S er v i c
e
C C W D a i s e nP r o d u c t s
CCWHPDCA cycle of agroup strategy
PDCA cycleof eachcompany
D
C
A P
D
C
AP
C C W J C un s t om e r
S e r vi c e
Mi k a s a S
e r vi c e
N on
N on-- C o c a
C o c a-- C ol aB u s i n e s s
C ol aB u s i n e s s
Kinki CCBCCCWJ Mikasa CCBC
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Ⅳ.Vision
CCWG Vision
Change to the 「Consumer View」
The strong confidential relationof employee and company
To the leading bottler in the worldTo the leading bottler in the world・Growth exceeding competition overwhelmingly
・Establishment of a steadfast profit base
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Ⅳ.Vision
Positioning of Bottlers in the world (Listed Bottlers)
Sale Volume Revenue Operation Income
No Bottler No Bottler No Bottler
1 CCE 1 CCE 1 CCE
2 FEMSA 2 CCHBC 2 FEMSA
3 CCHBC 3 FEMSA 3 CCHBC
4 Amatil 4 CCWH 4 Amatil
5 CCBPI 5 Amatil 5 Arca
6 Swire 6 CCCJ(Coca-Cola Central Japan) 6 Continental
7 Arca 7 Consolidated 7 CCWH
8 Continental 8 Arca 8 CCI9 CCI 9 Continental 9 ANDINA
10 Andina 10 CCI 10 CCCJ(Coca-Cola Central Japan)
11 CCWH 11 CCBPI 11 Swire
12 CCS 12 Swire 12 Consolidated
13 CCCJ(Coca-Cola Central Japan) 13 Andina 13 CCBPI
※Source CCWH
Main territoryCCE Coca-Cola Enterprises North America(78%), Canada(98%), Part of EuropeFEMSA 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 etcCCBPI Coca-Cola Bottlers Philippines PhilippinesSwire Swire Beverages Taiwan, Part of China, 10 states of America
Arca Embotelladora Arca Part of MexicoContinental Grupo Continental Part of MexicoCCI Coca-Cola Icecek Turkey, 6 countries of EurasiaAndina Embotelladora Andina Part of Chili, Brazil and ArgentinaCCS Coca-Cola Sabco East-South Africa(7 countries), Asia(5 countries)Consolidated Coca-Cola Bottling Company Consolidated Part of North America
Company name
Ⅴ T
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Ⅴ.Target
Market scale prediction
Take-Out Market(Super Market, CVS, Drug Store, Retail)
Eat-In Market(Food service)
Outdoor Vending machine market
Indoor Vending machine market
+8.5.5%
-10.30.3%
+2.8.8%
Positive factor
Inflow from a vendingmachine Increase of home-meal replacement increase in a valuablesoft-drink ratio Extension of businesshours
+4.1.1%
-4.9.9%
Positive factorPositive factor Increase in the rate of unmarriedIncrease in the rate of unmarriedFixing of coffee shopFixing of coffee shop
Negative factorNegative factorSaving dining out expenseSaving dining out expense Increase of home-meal replacement
Positive factorPositive factor
The empty space of alcohol orThe empty space of alcohol ortobacco vending machinestobacco vending machinesCognition as a socialCognition as a socialinfrastructure of vending machinesinfrastructure of vending machines
Negative factorNegative factorOutflow for takeout (CVS, SM)Outflow for takeout (CVS, SM)Outflow for coffee shopOutflow for coffee shop
Positive factorPositive factorRecovery of business (increaseRecovery of business (increasein overtime)in overtime)Enlargement of businessEnlargement of business placeplace IIncrease in leisure timencrease in leisure time
Negative factorNegative factorOutflow for takeout (CVS, SM)Outflow for takeout (CVS, SM)
Reduction in labor forceReduction in labor force
■2006 ⇒ 2009 Growth rate : +4.1% (1.3%/year)
20062006 Market ScaleMarket Scale
20092009 Market ScaleMarket Scale
Ⅴ T t
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Ⅴ.Target
The view of growth of CCWG
In order to grow up more than the growth of a market and toraise a share, we need growth of about 3% per year
2006 (Prospect)
186million cases
2009(Plan)
200million cases
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Ⅵ Strategy
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Ⅵ.Strategy
CCWG growth strategy
MaximizeMaximize
ValueValue
Group Restructuring
Expansion Efficiency
Leadership inLeadership in
the KO systemthe KO system
in Japanin Japan
Return toReturn to
StakeholdersStakeholders
Market Execution
Strategic Partnership with TCCC/CCJCStrategic Partnership with TCCC/CCJC
Ⅵ Strategy
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Evolution to the new bottler by strategic partnershipstrengthening with TCCC/CCJC
Evolution to the new bottler by strategic partnershipstrengthening with TCCC/CCJC
Expansion of the sales and the profit by the "ConsumerView" activity exceeding competitors
Expansion of the sales and the profit by the "ConsumerView" activity exceeding competitors
Strengthen a capability base of talented associates andorganizations
Strengthen a capability base of talented associates andorganizations
Functional strengthening, increase in efficiency whichharnessed management integration
Functional strengthening, increase in efficiency whichharnessed management integration
Ⅵ.Strategy
CCWG strategy
Ⅵ Strategy
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1. Establishment of new strategic collaboration organization
① Enforcement of a periodical management meeting
② Work in the same office with CCJC(Fukuoka/Osaka) : January, 2007
③ Communication strengthening with TCCC (implementation of a business meeting, Collaboration
IR, etc.)
④ Global talented-people exchange with CCJC and bottlers in world
<Management meeting>
Ⅵ.Strategy
Evolution to the new bottler by strategic partnership strengthening with TCCC/CCJC
Purpose :・Inquire collaboration organization toward realization of the continued growth ofCoca-Cola system
Matters :・Sharing of sales volume, share, profits, progress of strategies based on ABP
(Annual Business Plan) and modified action・Exchange views on Coca-Cola system reform
Frequency :・Once in two months
Participants :・CCJC Top managements/Officers in charge of Sales, Marketing and Finance・CCWH Top managements/Officers in charge of Sales and finance etc
Ⅵ Strategy
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2. Establishment of consistent organization by collaboration marketing
As a strategic partner of CCJC, CCWH will collaborate from marketing plan to operation with
consistent process more than what we have done so far
CCJC【Brand Marketing】
CCWH【Sales Marketing】
Marketing planProduct
development
Plan of marketdeployment
Test marketingSCM
CommercialdistributionOperation
Functional IntegratedCompanies
CCWJ・KINKI・MIKASA
Fullcooperation
Custmer
ConsumerProcess of marketing plan
・Holding of a marketing forum・Decision of a three-month rolling plan・Sharing of important activities・Project of new-product development
Plan of market deployment/Execution process
・Decision of a three-month rolling plan of market development・Reputation of important activities(monitoring)・New products/Promotion test plan・New business
<Collaboration
Marketing>
Justlikeone
Company(Voice)
PowerfulSupports
Existing BrandExisting Brand
MarketingMarketing
Ⅵ.Strategy
Evolution to the new bottler by strategic partnership strengthening with TCCC/CCJC
Ⅵ.Strategy
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Development of new products with CCJC, new category and sales method foraiming at the new growth opportunity in future。
– Install "product development team" in CCWH
– Deployment of chilled products in vending machine
・Number of Vending machine for chilled products :1,200units in 2009
– Product development for CVM
– Product development for On-Premise, reform of sales method
– Reform of sales method related to the high added value health drink
nonnon--entered domainentered domain((New productNew product//Reform sales methods)Reform sales methods)
Ⅵ.Strategy
Evolution to the new bottler by strategic partnership strengthening with TCCC/CCJC
※On – Premise…Syrup and package sales business in the “eating out” market
Ⅵ.Strategy
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<Marketing forum>
Purpose:・As a part of collaboration marketing, the sense of market of the whole thing
is made to reflect in strategy planning of CCJC.
Matters:・CCJC marketing strategy/Debate of the marketability(viewpoint from the operating spot) of a program
・Follow-up of ABP(Annual Business Plan)
・Decision of master plan(annual/quarter) etc
Frequency:
・Once in two months※It holds suitably if needed
Participants:・CCJC : Division of marketing/channel/promoting
・CCWH : Sales planning division・CCWJ/KINKI/MIKASA : Planning division etc
.S a egy
Evolution to the new bottler by strategic partnership strengthening with TCCC/CCJC
Ⅵ.Strategy
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CCVP( Coca-Cola Vending
Partnership)
CCVP( Coca-Cola Vending
Partnership)
3. Cooperation strengthening with national functional integrated companies
exertion of an initiative as a sales volume NO.1 bottler
CCCMC
( Coca-Cola CustomerMarketing Company )
CCWGCCWGEstablishment of
new vendingbusiness model
CCIBS( Coca-Cola Integrated
Business Solutions )
CCIBS( Coca-Cola Integrated
Business Solutions )
Construction of operating basisand support system
Practice of customer marketing
CCNBC( Coca-Cola National
Beverages )
CCNBC( Coca-Cola National
Beverages )
High product qualityLow cost operation
gy
Evolution to the new bottler by strategic partnership strengthening with TCCC/CCJC
Ⅵ.Strategy
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1. Reconstruction of the vending machine business which can offer the highest product andservice quality to consumer
① Reconstruction of the new business model in consumer viewpoint
– We built the high business model of a barrier to entry, and promote the improvement in competitive power
and cost increase in efficiency
– The measure for expansion by M&A – In cooperation with Coca-Cola Vending Partnership(CCVP)
② Deployment of an added value vending machine – Expansion of effective deployment of cashless payment vending machines
– Effective use of the on-line information by network vending machine expansion (selling information /
operation increase in efficiency) ⇒ Target of IT vending machine introduction : 20,000 units (3 years) – Expansion of a universal machine / energy-saving machine / non-chlorofluocarbon machine
③ Maintenance, expansion, and defense of the existing accounts and locations – Improvement in VPM by vending machine marketing strengthening
– Strengthening of account management
– Strengthening of the recovery restrictive measures of vending machines
④ The newly developed activities accompanied by the profitability centering on an indoor market
– Development strengthening by added value proposals (Cmode vending machines etc)
⇒ Target of indoor vending machine introduction : 33,000 units (3 years)
⑤ Improvement of profitability
– Improvement of unprofitable locations
– Increase in efficiency of operation which utilized IT
– Increase in efficiency of apparatus employment
Expansion of the sales and the profit by the "Consumer View" activity exceeding competitors
※VPM…Volume Per Machine
Ⅵ.Strategy
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2. Improvement in quality of the customer management which can offer highest product andservice with the customer to consumer
① Expansion of offer worth to consumer by the improvement in quality of customer management
– Promotion of customer relation management
– Inclination distribution of investment ⇒Formulation of the business plan according to customer – Promotion of category management (expansion of the sales and the profit by the scientific analysis
based on data)
② Strengthening of CBPPP strategy planning based on consumer purchase action, and market
power of execution – Enforcement of the business condition segment based on consumer use motivation
– Execution of the optimal strategy according to segment based on the consumer purchase action
③ Practical use of an internal management index
– Visualization of the customer actual condition by the P/L creation classified by customer – Strategic evaluation (achievements) and evaluation of a operating process (activity)
– Management of the cost price and a promotion
④ Improvement in organization capability
– The advancement and increase in efficiency of activity by specialization of MD
– Strengthening of business talk power
※CBPPP:Channel、Brand、Package、Price、Promotion
Expansion of the sales and the profit by the "Consumer View" activity exceeding competitors
Ⅵ.Strategy
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3. Production of structure which includes the consumer's voice in the management cycle of company
① Organization maintenance and Capability strengthening which harnesses the consumer's voice
in a strategy
– Structure which collects the consumer’s voice on a daily basis
– Strengthening of the structure of policy reflection
Information chain with CCJC,
② Structure which uses a complaint for management (CCW area:5000 affairs in 2005)
③ Strengthening of the quality control organization in a market/Clarification of standard
– Shipment control, Quality control in market and Practical use of a branch inventory relish
management system etc
④ Maintenance and fullness of production and physical distribution organization which sends
"safety and relief" to consumer – Deployment of improved quality movement in manufacturing departmentmanufacturing department
– Enforcement of production and physical distribution equipment assessment, and
maintenance of an investment standard
– Tradition of the technology by decision of a factory work standard – Re-maintenance of operating process and operations manuals
Expansion of the sales and the profit by the "Consumer View" activity exceeding competitors
Ⅵ.Strategy
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Functional strengthening, increase in efficiency which harnessed management integration
1. Maintenance and fullness of structure of decision-making, report and supervisor function① Introduction of a group corporate officer system② Reexamination of an authority standard according to an organization and a role③ Reexamination of the organization design united with group reorganization④ Construction of a unification sanction system
2. Integration and maintenance of management organization① Logistics company integration (from January, 2007)② Reorganization of a manufacture function③ Reorganization of functional companies (vending, vending service, etc.)
④ Reorganization on Non-Coca-Cola business3. Strengthening and increase in efficiency of operating organization
① Construction of the common platform of indirect department② Construction of the SCM organization which corresponds to change of a market flexibly
‒ Reconstruction of a standard operating process
③ Establishment of performance management structure
‒ Maintenance of a performance management index
…Maintenance of the performance management index centering on sales department
…The monthly settlement of accounts in MIKASA and consolidated statements are brought
forward④ Concentration of group purchase
Ⅵ.Strategy
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1. Construction of value standard of personnel management① Decision and fixing promotion of a group talented-people management concept
2. Maintenance of the personal system in CCWG
① Maintenance of position, rank, occupational description, grade and treatment level etc
② Maintenance of evaluation system
3. Career development of employee, Human-resources development which supportsmotivation and man-power development
① Decision and enforcement of a personnel training plan which unified in CCWG
② Suitable treatment which harnessed each characteristic
③ Promotion of positive action④ Consideration of work life balance
⑤ Construction of a recruit center
⑥ Construction of talented-people data bank function
Strengthen a capability base of talented associates and organizations
<Personnel plan (employee)>
8,500 in 2006 ⇒ 8,000 in 2009
Ⅵ.Strategy
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IT system strategy
1.Standardization andintegration of operatingprocess / IT system
2.Visualization ofactivity
3.Strengtheningof operating
power, and theadvancement of a
process
4.Themeasure for
the new growth
field
5.Integration of IT infrastructure
Evolution to the new bottler bystrategic partnership strengtheningwith TCCC/CCJC
Evolution to the new bottler bystrategic partnership strengtheningwith TCCC/CCJC
Expansion of the sales and the profitby the "Consumer View" activity
exceeding competitors
Expansion of the sales and the profitby the "Consumer View" activity
exceeding competitors
Strengthen a capability base oftalented associates and organizations
Strengthen a capability base oftalented associates and organizations
Functional strengthening, increase inefficiency which harnessedmanagement integration
Functional strengthening, increase inefficiency which harnessedmanagement integration
1.The framework of IT system which developed four strategies
M a i n t e
n a n c e
a n d
i n c r e a s e i n
e f f i c i e n
c y
o f a
m
a n a g e m e n t b a s e
E x p a n s i o
n o f s a l e s
a n d
p r o f i t
Ⅵ.Strategy
IT t t t
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IT system strategy
2.IT system which supports four strategy measures
① Standardization and integration of operating process / IT system
Measure for standardization of a basic process, and reconstruction of a system :from 2008
Collaboration project with CCIBS is started in the Fukuoka office this year
② Visualization of activityStructure which uses a complaint for management (CCW area:5000 affairs in 2005) :from 2008
Structure which collects the voice on a daily basis :from 2009
③ Strengthening of operating power, and the advancement of a process
Strengthening of the vending machine business by practical use of on-line information-Strengthening of the products offered which suited the segment :on going-Formation of 1 round trip /Directions of vending machine charge :from 2008
Visualization of Purchase information/Strengthening operating process etc :from 2007
SCM process:System which manages the pull-date of branch stock :from 2008
④ The measure for the new growth field
Construction of the back office system supporting IT VD machine business,
such as a cashless payment :from 2008
⑤ Integration of IT infrastructure
Reconstruction of a wide area network/LAN :from 2007
The measure for security :on going
Ⅵ.Strategy
T t hi t i (O ti I )
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Attain the increase of 12 billion yen profits by realization of group strategy in2009.(vs2006)
Target achievement scenario (Operating Income)
2006Prospect
13.1 BY
25 BY
2009
Plan
SG&A
169BY(Ratio of
SG&A 41%)
SG&A
168 BY(Ratio of
SG&A 38%)
+0.9 BY
+6 BY
+1 BY
+4 BYExisting ChannelIncrease sales volume
New Channel
(Chilled and other)
• Personnel-expenses reduction(-500) 2.6 BY
• Centralized procurement 0.8 BY
– Vending machine/Trade fixture
• Manufacture and distribution cost reduction
-Increase in efficiency 1.3 BY
-Reduction of goods abandonment 0.2 BY
• Business System charge fee △0.9 BY
Operators M&AOther
Cost Reduction
•Vending 6.4 BY
•SM/New Channel 1.0 BY•CVS 0.2 BY
•Retail △1.7 BY•Food Service 0.3 BY
•Other Channel △0.2 BY BY stands for Billion Japanese Yen
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[Reference]
Reference
Performance Trend (Consolidated)
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30
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
96 97 98 99 00 01 02 03 04 05 06計画
0
5,000
10,000
15,000
20,000
25,000
Operating
Income
Net Revenues
16,021
1,420
11,273
5,721
Net
Revenues
Operating
Income
Recuring
Income
NetIncome
12,510
2000
113,490
10,481
1998 1999 2001
12,533 15,160
115,408
1997
11,054
1996
5,428 9,3805,872 6,823 5,700
15,889 18,516
226,111
16,634
19,895
164,731 207,827 240,825
17,449 19,638
117,991
10,737
247,737
16,704
17,005
7,086
2002 2003 2004
253,248
16,860
17,065
8,564
2006
(prospect)
333,400
12,400
13,300
7,4007,305
2005
245,874
11,830
12,256
1999/7/1:Merged withSanyo CCBC
2006/7/1Integration withKinki CCBC
Performance Trend (Consolidated)
2001/4/5Make Mikasa CCBC
subsidiary
(MM JPY)(MM JPY)
(MM JPY)
Reference
Financial Data (Consolidated)
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31
16,634 16,704 19,638 16,860
11,830
8.2
4.8
6.7
7.46.7
0
5,000
10,000
15,000
20,000
25,000
2001 2002 2003 2004 2005
0.0
2.0
4.0
6.0
8.0
10.0
17.62
85.49
116.25108.80
93.42
133.6
29.524.218.120.8
0.0
50.0
100.0
150.0
2001 2002 2003 2004 2005
0.0
50.0
100.0
150.0
(%)
173,608
167,036165,454164,658
157,129
83.2
80.681.0
80.7
77.5
145,000
150,000
155,000
160,000
165,000
170,000
175,000
2001 2002 2003 2004 2005
74.0
75.0
76.0
77.0
78.0
79.0
80.0
81.0
82.0
83.0
84.0
(%)
4.4 4.3
8.2
5.95.25.7
0.9
9.48.3
7.9
0.0
2.0
4.0
6.0
8.0
10.0
2001 2002 2003 2004 2005
ROA
ROE
PER
EPS
(%)(times)
Financial Data (Consolidated)
<Operating Income/Operating Income Ratio> <Net Assets / Equi ty Ratio>
<ROA/ROE> <EPS/PER>
Operating income
Operating income ratioEquity Ratio
Net Assets
(MM JPY)(MM JPY)
(JPY)
Reference
Coca Cola System in Japan
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Capital Injection
Coca-Cola(Japan)Co.,Ltd.
(CCJC)
③
Coca-ColaNational BeveragesCompany, Limited
(CCNBC)
⑥
Coca-ColaIntegrated Business
Systems,Company, Limited
(CCIBS)
⑦
Coca-ColaCustomer Marketing
Company, Limited(CCCMC)
⑧
FVCorporation
(FVC)
⑨
10 Coca-Cola
Bottlers( CCBC )
Coca-ColaCentral Japan
Company, Limited( CCCJ )
Coca-Cola WestHoldings Company,
Limited( CCWH )
①
(100%)
⑤
Coca-Cola Tokyo
Research & DevelopmentCompany, Limited
(CCTR&D)
④TheCoca-ColaCompany
(TCCC)②
(100%)
Coca-Cola System in Japan
(5%
)
Investment byTCCC, CCJC,
and Bottlers
(4%)
(as of 2007/1/1 )
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Reference
Our Group Companies – Principal Business
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Our Group Companies – Principal Business(as of 2007/1/1)
Ou r G rou p C om pa n i e s Pr i n c i p a l B u s i n e s s
(1)Coca-Cola West Japan (CCWJ) Beverage sales
(2)Kinki Coca-Cola Bottling Beverage sales
(3)Mikasa Coca-Cola Bottling Beverage sales
(4)CCWJ Products Beverage production
(5)Kinki Coca-Cola Products Beverage production
(6)Daisen Beverages Beverage production (mineral water)
(7)CCWJ Logistics Freight transport-operations
(8)Kansai Logistics Freight transport-operations
(9)Mikasa Logistics Freight transport-operations
(10)CCWJ Vending Vending machine operations (Coca-Cola products)
(11)Nishinihon Beverage Vending machine sales and servicing(12)Kansai Beverage Service Vending machine sales and servicing
(13)Mikasa Beverage Service Vending machine sales and servicing
(14)Nesco Vending machine operations
(15)KADIAC Vending machine operations (in the Kansai Air Port)
(16)CCWJ Customer Service Vending machine-related businesses(17)Mikasa Service Vending machine-related businesses
(18)Nichibei Manufacture of processed foods
(19)Takamasamune Production and sales of alcoholic beverages
(20)West Japan Service Insurance, leasing, and business machine sales
(21)Rex Estate Real estate business
(22)Seiko Corporate Japan Maintenance and repair of motor vehicle
(23)C&C Sales and manufacturing of food, Chain restaurant business
(24)Akiyoshi Systems Chain restaurant business
Reference
Glossary
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Glossary
T e rm D e sc r ipt io n
C h a n n e l
・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 in the “eating out” market
・On-Premise Syrup and package sales business in the “eating out” market
・Distributor Middleman who work for Coca-Cola to handle our products in remote areas and islands
Vend i n g
・Regular vending machineA 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 unspecific
・In-market vending machine An indoor machine whose users are relatively specific
・VPM Sales volume per vending machine
Cha i n S t o re
・National 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
O t h e r
・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
Forward-Looking Statement
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The plans, performance forecasts, and strategies appearingin 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 actualperformance 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 above
Forward Looking Statement