Kirin Holdings Co. Ltd. · TSE:2503
Kirin — FY2008 Earnings Presentation
53 slides from Kirin's earnings presentation, Feb 10, 2009
Slide 1: 2008 Results Presentation
2008 Results Presentation Fiscal year ended December 31, 2008 February 10, 2009 Kirin Holdings Company, Limited
Slide 2: Contents
Contents Results Overview 2008 - 2008 Consolidated Review - 2008 Results by Segment (quantitative and qualitative) Alcohol/ Soft Drinks and Foods/ Pharmaceuticals/ Other - Profit Breakdown for 2008 (ordinary income and net income) - Major fluctuations of Balance Sheet 2009 Forecasts - 2009 Conso
Slide 3: Results Overview 2008
Results Overview 2008
Slide 4: Performance trends
Performance trends Consolidated Consolidated sales, sales, operating operating income income and and EBITDA EBITDA increased increased significantly significantly in in 2008 2008 Income Sales 280 2,400 240 2,200 200 2,000 160 1,800 120 1,600 Sales 80 1,400 EBITDA Op. income 40 1,200 Ord. income Net
Slide 5: Consolidated sales and operating income by segment
Consolidated sales and operating income by segment (2007⇒ (2007⇒2008⇒ 2008⇒2009 forecasts) ■ Sales: Significant growth in Soft Drinks & Foods and Pharmaceuticals during 2008 with expanded scope of consolidation Alcohol (7.9 bn) Alcohol (86.5 bn) 2007 SD&F ＋242.1 bn 2008 SD&F ＋23.4 bn 2009 (forecasts
Slide 6: 2008 consolidated review
2008 consolidated review • Achieved quantitative expansion, increasing corporate scale through business & capital alliances, etc. Met Q3 operating income target in a tough environment, supported by contribution from Group’s foundation business Kirin Brewery • Achieved record-high full-year operating
Slide 7: Alcohol beverages segment: 2008 results
Alcohol beverages segment: 2008 results 2008 results 2007 results Change in % Change in yen (billion yen) Operating income is Alcohol Consolidated sales 1,181.5 1,189.4 (0.7％) (7.9) before eliminations beverages Operating income 109.9 96,5 +13.9％ +13.4 Kirin Brewery: Sales down, earnings up Key chan
Slide 8: Soft drinks and Foods: 2008 results
Soft drinks and Foods: 2008 results 2008 results 2007 results Change in % Change in yen Operating income is (billion yen) before eliminations Soft drinks and Consolidated sales 716.6 474.5 +51.0％ +242.1 Foods Operating income 6.4 16.0 (59.9％) (9.6) Kirin Beverage: Sales up, earnings down (consol., i
Slide 9: Pharmaceuticals segment: 2008 results
Pharmaceuticals segment: 2008 results (billion yen) 2008 results 2007 results Change in % Change in yen Operating income is before eliminations Consolidated sales 171.5 69.9 +145.3％ +101.6 Pharmaceuticals Operating income 28.2 13.0 +116.9％ +15.2 Kyowa Hakko Kirin ※Kyowa Hakko consol. from 4/2008 (me
Slide 10: Other business segment: 2008 results
Other business segment: 2008 results (billion yen) 2008 results 2007 results Change in % Change in yen Operating income is before eliminations Other Consolidated sales 233.8 67.2 +247.9％ +166.6 Operating income 18.2 6.3 +188.8％ +11.9 Kyowa Hakko Bio Co., Ltd. ・Sales of amino acids for medical and in
Slide 11: Profit breakdown (Ordinary income and net income)
Profit breakdown (Ordinary income and net income） Ordinary Ordinary income income Net Net income income ※前連結会計年度よりサンミゲル社（決算期12月期）の決算取込み期間を変更しております。 平成19年度は、サンミゲル社の平成18年10月から平成19年9月の決算値を基礎として算出しております。 11
Slide 12: Exchange rate for overseas companies
Exchange rate for overseas companies Exchange rate for overseas company 2007 2008 Lion Nathan (AUD) 96.72yen 97.38yen National Foods (AUD) 99.01yen 88.00yen San Miguel (PHP) 2.51yen 2.50yen Exchange rate for overseas company 2008 2009 Forecast Lion Nathan (AUD) 97.38yen 62.00yen National Foods (AUD)
Slide 13: Major fluctuations of balance sheets
Major fluctuations of balance sheets 13
Slide 14: Major fluctuations of balance sheets
Major fluctuations of balance sheets KHAU：キリンホールディングス（オーストラリア） 14
Slide 15: 2009 Forecasts
2009 Forecasts
Slide 16: 2009 consolidated forecast
2009 consolidated forecast • Emphasize qualitative (profitability) expansion: Although exchange rates and changes to accounting policy will have an effect on earnings, we will aim to steadily reinforce our earnings base by creating cost synergies, reducing marketing and administrative expenses, and
Slide 17: Alcohol beverages: 2009 forecasts and plans
Alcohol beverages: 2009 forecasts and plans (billion yen) 2009 forecasts 2008 results Change in % Change in yen Operating income Alcohol beverages Consolidated sales 1,095.0 1,181.5 (7.3％) (86.5) is before eliminations Consolidated 90,0 109.9 (18.2％) (19.9) operating income Japan Key changes in 2009
Slide 18: Soft drinks and foods: 2009 forecasts and plans
Soft drinks and foods: 2009 forecasts and plans (billion yen) 2009 forecasts 2008 results Change in % Change in yen Operating income Soft drinks and Consolidated sales 740.0 716.6 ＋3.3％ 23.4 is before eliminations foods Consolidated operating 12.0 6.4 ＋86.6％ 5.6 income Japan Key changes in 2009 cf.
Slide 19: Pharmaceuticals segment: 2009 forecasts and plans
Pharmaceuticals segment: 2009 forecasts and plans (billion yen) 2009 forecasts 2008 results Change in % Change in yen Operating income Consolidated is before 200.0 171.5 ＋16.6％ ＋28.5 eliminations sales Pharmaceuticals Consolidated 28.0 28.2 (0.7％) (0.2) operating income Domestic Overseas Kyowa Hakko
Slide 20: Other segment: 2009 forecasts and plan
Other segment: 2009 forecasts and plan (billion yen) 2009 forecasts 2008 results Change in % Change in yen Operating income Other Consolidated sales 265.0 233.8 ＋13.3％ ＋31.2 is before eliminations Consolidated 13.0 18.2 (28.9％) (5.2) operating income Kyowa Hakko Bio Co., Ltd. ・Continue to develop bu
Slide 21: Profit breakdown for 2009 forecast
Profit breakdown for 2009 forecast (Ordinary income and net income） 21
Slide 22: 2009 financial strategy: shareholders' perspective and capital efficiency
2009 financial strategy: Management from shareholders’ perspective and improving capital efficiency We will continue efforts to maximize corporate value, considering shareholders’ perspectives while pursuing a financial strategy to realize a quantum leap in growth ・Aim to generate approx. ¥143 bn in
Slide 23: Appendix
Appendix
Slide 24: National Foods 2008 full year results and 2009 forecasts
National Foods 2008 full year results and 2009 full year forecasts *As disclosed in Kirin Holdings’ consolidated financial statement 2008 actual Converted to 2009 Converted to results yen forecast yen ($A million) ( \ billion)* ($A million) ( \ billion)* Net sales 2,414 212.4 3,487 216.2 National Fo
Slide 25: National Foods analysis of operating income: 2007 vs 2008
National Foods analysis of operating income（EBIT): 2007 results vs. 2008 results ■ Major increase in milk costs from 2007 H2 on had larger than anticipated impact Upward price revisions (four times), mainly for milk; however due to a consumer shift to lower priced products caused by deteriorating ec
Slide 26: National Foods analysis of operating income: 2008 vs 2009 forecast
National Foods analysis of operating income（EBIT): 2008 results vs. 2009 forecast ■ Forecasting a A$30m rise in raw milk cost from existing contracts despite milk price increases continuing to ease ■ In response to the above, we aim to boost results through pro-active sales activities to strengthen
Slide 27: National Foods 2008 results review by segment
National Foods 2008 results review by segment* 2008 2007 Change Comment Total (Volume in million liters sales in AU$ million) Sales volume 1,495 1,467 28 Net sales 2,124 2,006 118 Milk ・ Revised prices in effort to offset high milk cost and distribution costs Sales volume 864 815 49 →Consumption pat
Slide 28: National Foods 2009 forecast by segment
National Foods 2009 forecast by segment (excluding Dairy Farmers) 2009 2008 C h an ge Comment T o t al (Volume in million liters, sales in $A) Sale s vo lu m e 1,487 1,495 - 8 Ne t sale s 2,226 2,124 102 Milk ・Impact of milk costs remain but through PB and NB price rises Sale s vo lu m e 891 864 27
Slide 29: Contribution to earnings by segment
Contribution to earnings by segment (brand contribution) ■ 2008 first half: Higher milk costs reduced contribution from milk segment to 26% 2008 full year: Milk segment recovered to 32%, aided by price rises ■ 2009 outlook: Aiming for further milk segment recovery (figures are exclusive of DF) 2007
Slide 30: National Foods: EBIT growth image
National Foods: EBIT growth image ■ Estimated 2012 EBIT of $300-350m based on organic growth and synergies between National Foods and Dairy Farmers $350 EBIT $m $300～350m $300 Approx. Approx. A$220m A$220m EBIT EBIT growth growth NFL NFL organic organic growth growth approx. approx. A$100m A$100m DF
Slide 31: Lion Nathan results overview
Lion Nathan results overview 2008 Full year results (Oct. 2007 – Sep. 2008) Unit: A$ million Highlights: Income increased for 9th consecutive year as the Australian Beer business raised prices and shifted towards premium products; higher input costs and increased depreciation expenses covered by acq
Slide 32: Inclusion of Lion Nathan in Kirin Group's consolidated results
Inclusion of Lion Nathan in Kirin Group’s consolidated results (billion yen) Operating Ordinary Consolidated Average rates during period 2008 Sales income income Net income net income as used in Lion Nathan P&L LN P/L 203.9 48.5 38.8 26.5 12.2 2008 1A$ = ¥97.38 Brand amortization (7.4) (7.4) (7.4) (
Slide 33: San Miguel results overview
San Miguel results overview Reference: Trends in net sales and operating income FY 2008 Jan to Sep. Highlights: Development of San Miguel Net sales up at all main Group companies rising 15% over previous year on a consolidated basis Since 2007 SMC has entered the power generation, power transmission
Slide 34: Inclusion of San Miguel in Kirin Group's consolidated results
Inclusion of San Miguel in Kirin Group’s consolidated results (billion yen) Operating Ordinary Consolidated 2008 Sales income income Net income net income SMC P&L 417.1 35.6 61.5 56.0 11.1 Equity in earnings Average rates during the period of af f iliates* 11.1 11.1 11.1 as used in SMC P&L Amortizat
Slide 35: Pharmaceuticals pipeline
Pharmaceuticals pipeline *Changes since August 2008 (As of January 31, 2009) Code Name Stage In-house OR Category Generic Name Indication Formulation Remarks Product Name Licensed Japan Other countries Long-acting erythropoiesis stimulating protein KRN321 Darbepoetin Alfa Filed Nov/2008 ☆ Anemia Inj
Slide 36: Pharmaceuticals pipeline 2
Pharmaceuticals pipeline 2 *Changes since August 2008 (As of January 31, 2009) Code Name Stage In-house OR Category Generic Name Indication Formulation Remarks Product Name Licensed Japan Other countries PB94 Sevelamer Filed in China Licensed from PHOSBLOCK Hydrochloride Hyperphosphatemia Oral Launc
Slide 37: Goodwill amortization (2008 full-year actual)
Goodwill amortization （2008 full-year actual） Total Kirin Holdings investment Goodwill Brand amorti- (Billion yen) zation Year of Amortiza- Balance Years Amortiza- Balance Years Amortiza- Balance Years investment tion remaining remaining tion remaining remaining tion remaining remaining LION NATHAN
Slide 38: Kirin Group Structure (as of February 2009)
Kirin Group Structure (as of February 2009) As of February 2009 Kirin Kirin Holdings Holdings *Equity method affiliates Kirin Mercian Lion Kirin San Kirin Kirin Kirin Nagano National England, Coca-Cola Kyowa Kirin-Amgen* Kirin Inc.,Yokohama Hotel, Kirin Kirin Kirin Kirin Raymond Kirin Brewery Mercia
Slide 39: Supplemental Information
Supplemental Information
Slide 40: Results of Operations
. BOLESR HC Results of Operations TWIDIAL KIRIN (¥ billions) 2007 2009 Actual Forecast (year-on-year rate) | Sales 1,801.1 8.1% 27.9% 2,300.0 (0.2%) Operating income 120.6 3.7% 21.0% 121.0 (17.1%) Ordinary income 123.3 2.1% (16.5%) 125.0 21.3% Net income 66.7 24.7% 20.2% 57.0 (28.9%) EBITDA 4 213.1
Slide 41: Sales Details
Sales Details —_— ™1 These figures do not include 442,828 KL for the fiscal year 2008 (actual) and 415,000 KL for the fiscal year 2009 (forecast) in soft drinks business of National Foods. *2 Please refer to a. Business segment information of (SEGMENT INFORMATION) on pages 32, 33 and 34 for changes
Slide 42: Major Expense and Others
Major Expense and Others KIRIN & billions) 2007 2008 2009 Actual Actual Forecast Sales promotion 181.4 201.2 +} 252.5 Advertising 69.0 72.0 (Sales promotion and advertising expenses include in the above) Kirin Brewery Sales promotion 476 92.3 } 79.1 advertising expenses 364 Kirin Beverage “1 Sales p
Slide 43: Major Fluctuations of Balance Sheets
Major Fluctuations of Balance Sheets 43
Slide 44: Major Fluctuations of Balance Sheets (continued)
Major Fluctuations of Balance Sheets (continued) 44
Slide 45: Guide to Kirin Group Consolidated Financial Indices
Guide to Kirin Group Consolidated Financial Indices 45
Slide 46: Information by Segment
Information by Segment KIRIN <FY2008> (¥ billions) Alcohol Soft grnks and PI tical Others Eliminations or Total Depreciation *1 46.7 26.3 75 12.8 24 95.9 Amortization of goodwill *2 55 10.0 47 05 - 20.8 EBITDA *3 167.8 36.1 32.3 38.1 (9.9) 264.6 Capital expenditures 58.5 30.4 55 31.1 03 126.0 R&D ex
Slide 47: Results of Operations by Major Companies (Consolidated)
Results of Operations by Major Companies (Consolidated) 47
Slide 48: FY2009 Forecasts
FY 2009 Forecasts KIRIN & billions) Kirin Brewery (consolidated subsidiary) *1 859.6 52.8 - - - Mercian (consolidated subsidiary) 90.0 24 2.0 09 04 Lion Nathan (consolidated subsidiary) *2 129.8 30.8 247 16.9 77 Brand amortization (4.8) (48) (48) (22) Amortization of goodwill *3 (4.3) (4.3) (43) (3.
Slide 49: Sales Details of Alcohol Beverages (Kirin Brewery)
Sales Details of Alcohol Beverages (Kirin Brewery) 49
Slide 50: Sales Details of Soft Drinks (Kirin Beverage)
Sales Details of Soft Drinks (Kirin Beverage) 50
Slide 51: Sales Details of Soft Drinks by Container (Kirin Beverage)
Sales Details of Soft Drinks by Container (Kirin Beverage) 51
Slide 52: Sales Details of Pharmaceuticals
Sales Details of Pharmaceuticals 52
Slide 53: This material is intended for informational purposes only
この資料は投資判断の参考となる情報の提供を目的としたものであり、投資勧誘を目的としたものではありません。 銘柄の選択、投資の最終決定は、ご自身の判断でなさるようにお願いいたします。 This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. 53
Kirin Holdings Company — FY2008 Earnings Presentation on 6ix