Takara Holdings Inc. · TSE:2531
Takara — Investor Presentation (March 2024)
71 slides from Takara's investor presentation, Mar 22, 2024
Slide 1: Takara Holdings Inc. Information Meeting
Takara Holdings Inc. Information Meeting March 2024 Hideo Takahashi, Managing Director
Slide 2: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 3: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 4: Overview of Takara Group
Overview of Takara Group Trade name: Takara Holdings Inc. Founded: 1842 Established: September 6, 1925 exchange listings: 2531 Tokyo (Prime section) Head office: Kyoto, Japan Representative: Mutsumi Kimura, President Issued Capital: ¥13,226 million Number of employees ： 5,131 (Takara Holdings Consol
Slide 5: Business Structure of Takara Group
Business Structure of Takara Group Takara Holdings Inc. Takara Shuzo Takara Shuzo Int’l Group Takara Bio Group Domestic Business Overseas Business Biomedical business Others 5
Slide 6: Business History
Business History 1842 Founded in Takenakacho, Fushimi ：Domestic Business 1925 Founded Takara Shuzo co., ltd. ：Overseas Business (currently Takara Holdings Inc.) ：Biomedical Business 1951 Started exporting the Sho Chiku Bai brand of sake to the U.S. 1957 Entered beer business (Withdrew in 1967) 1979
Slide 7: Trend in Operating Income by business
Trend in Operating Income by business Our strength lies in the fact that we have built well-balanced business structures that are resilient to changing conditions thanks to having multiple, fully independent businesses that differ in their content and areas of development 50 （billions of yen） Takara
Slide 8: Long term Management Vision
Long term Management Vision Long term Management Vision 「TaKaRa Group Challenge for the 100 th」 A six-year management plan that defines the vision of the group and sets a milestone in FY2025 (fiscal year ending March 2026), when we will celebrate our 100th anniversary. ◆ Vision Smiles in Life ～Smile
Slide 9: Medium-Term Management Plan for 2025
Medium-Term Management Plan for 2025 Long-Term Management Plan “TaKaRa Group Challenge for the 100th（TGC100） ” (for 2020-2025) Medium-Term Management Plan for 2022 Medium-Term Management Plan for 2025 for 2020-2022 for 2023-2025 During this period, Takara Group intends to accelerate investing in Dur
Slide 10: Financial Targets of the Medium-Term Management Plan for 2025
Financial Targets of the Medium-Term Management Plan for 2025 In addition to enhancing net sales and operating income and raising the percentage of net sales from overseas operations, we aim to improve investment efficiency in the medium and long term Medium-Term Medium-Term Management Plan Manageme
Slide 11: Trends in Percentage of Net Sales from Overseas Operations
Trends in Percentage of Net Sales from Overseas Operations The percentage of net sales from overseas operations has been significantly expanding from 9.1% in the fiscal year ended March 31, 2013 to 48.3% in the fiscal year ended March 31, 2023. We aim to achieve 60% or more (and 60% or more excludin
Slide 12: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 13: Main Products of Takara Shuzo
Main Products of Takara Shuzo We manufacture and sell alcoholic beverages in a wide range of categories focusing on light-alcohol refreshers such as canned chu-hi, as well as Japanese traditional alcohol including shochu, sake and Hon- mirin Sales by Business Category (Fiscal year ended March 31,
Slide 14: Strengths Underpinning the Takara Brand
Strengths Underpinning the Takara Brand Engineering excellence and development capability nurtured in over 180 years of its history ◆Barrel-aged shochu in about 20,000 casks ◆Japanese sake brewing by combining (Kurokabegura in Miyazaki） traditional techniques and modern technologies (Shirakabegura i
Slide 15: Takara Shuzo: Business Strategy
Takara Shuzo: Business Strategy in the Medium-Term Management Plan for 2025 Basic We will engage in thorough brand development, policy raise profit margins, and expand Washu into global markets ◆Key Strategic Themes ●Strengthen product and brand development capabilities to substantially boost profit
Slide 16: Brand Development Policy
Brand Development Policy in the Medium-Term Management Plan for 2025 We will develop stronger brands through increased expenditure on promotion, etc. for the eight key brands ◆key brands ・Gokujo <Takara Shochu> ・Takara Shochu Highball and Takara Karakuchi Zero Ball ・Sho Chiku Bai Shirakabegura “MIO”
Slide 17: Initiatives of Brand Development: Takara Shochu Highball
Initiatives of Brand Development <Takara Shochu Highball> We run a BS program to convey the product’s “cheap saloons concept,” while working to create deeper fan experiences and acquire new users by featuring no carbs and strengthening sales of the alcohol content 5% series ◇Promote “cheap saloons c
Slide 18: Initiatives of Brand Development: Sho Chiku Bai Shirakabegura MIO
Initiatives of Brand Development <Sho Chiku Bai Shirakabegura “MIO” Sparkling Sake> Introduce limited products that meet various needs to MIO and MIO CLEAR, two pillar items, to revitalize the brand, while implementing initiatives to acquire demand from inbound tourists ◇ Dissemination of informatio
Slide 19: Initiatives of Brand Development: Takara Karakuchi Zero Ball
Initiatives of Brand Development <Takara Karakuchi Zero Ball> Non-alcoholic Chu-Hi released in 2022. Continue to use Shuzo Matsuoka as the face of the product advertisement, and TV commercial will Continue after March 2024 ◇Gain greater recognition through continued advertisement TVCM March 2024 App
Slide 20: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 21: Overseas Business of Takara Shuzo Int'l Group
Overseas Business of Takara Shuzo Int’l Group We develop two businesses: Overseas Alcoholic Beverages Business and Japanese Food Wholesale Business in Overseas ◆Overseas Alcoholic Beverages Business ◆Japanese Food Wholesale Business in Overseas Net Sales forecast for the fiscal year ending March, 20
Slide 22: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 23: Market Environment: Growth of Export Market
Market Environment: Growth of Export Market Exports of Japan’s agricultural, forestry and fishery products and foods are increasing every year. Growth in 2023 showed a year-on- year growth of 102.9% ◇Trends in exports of Japan’s agricultural, forestry and fishery products and foods (Billions of yen)
Slide 24: Market Environment: Growth of Alcoholic Beverages and Japanese Sake
Market Environment: Growth of Alcoholic Beverages and Japanese Sake Alcoholic beverages are showing the same trend and further market expansion is expected. Japanese sake category is also growing ◇Alcoholic beverages exports ◇Japanese sake exports (Billions of yen) (Billions of yen) 160 50 140 45 40
Slide 25: Market Environment: Growth of Japanese Restaurants Abroad
Market Environment: Growth of Japanese Restaurants Abroad The number of Japanese restaurants in the world is rapidly growing, 3.4 times larger than that 10 years ago ＜2013＞ ＜2019＞ ＜2021＞ ＜2023＞ Approx. → Approx. → Approx. → Approx. 55,000 156,000 159,000 187,000 * Upper numbers are from 2023, lower
Slide 26: Market Environment: Regular and Popular Japanese Food Menus
Market Environment: Regular and Popular Japanese Food Menus Salmon, tuna and young yellowtail are popular sushi toppings. In noodles, ramen became established as a regular menu, while udon is also advancing Popular Japanese Food Menus① Sushi Salmon Tuna young yellowtail Popular Japanese Food Menus ②
Slide 27: Takara Shuzo Int'l Group: Group Company's Transaction Case
Takara Shuzo Int’l Group: Group Company’s Transaction Case Although Japanese foods are mainly used at Japanese restaurants, they are increasingly adopted by various types of cuisine, such as Western, Asian and fusion cuisine ■Composition of our customer bars and restaurants Thai cuisine: 1% (135%) F
Slide 28: Takara Shuzo Int'l Group: Business Strategy
Takara Shuzo Int’l Group: Business Strategy in the Medium-Term Management Plan for 2025 Basic We will achieve revenue growth for the whole Group through the rapid growth of the Washu and Japanese policy food wholesale business and the stable growth of Western-style liquor business ◆Business Strategy
Slide 29: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 30: Business Sites of Overseas Alcoholic Beverages Business
Business Sites of Overseas Alcoholic Beverages Business We have manufacturing sites in the U.S., China, the U.K., and Canada 30
Slide 31: No.1 Company in Overseas Market for Sake
No.1 Company in Overseas Market for Sake Hold No.1 position in the overseas market for sake in terms of a total of local production and export quantity ◇Overseas production and export quantity of major sake manufacturers (2022) Takara The Company Company A Company Ｂ Company Ｃ Company Ｄ Company Ｅ Com
Slide 32: Overseas Alcoholic Beverages Business (Washu)
Overseas Alcoholic Beverages Business (Washu) We manufacture Sho Chiku Bai and other traditional washu, including sake, mirin and plum brandy, in the U.S. and China. Leveraging local production, we also develop innovative, exclusive overseas products that address local market environment and needs ◇
Slide 33: Initiatives of Innovative SAKE brewing
Overseas Alcoholic Beverages Business (Washu) : <Initiatives of “Innovative SAKE” brewing> Invested in WAKAZE and acquired 80% of the shares issued and outstanding of Ontario Limited in Canada. By combining the realm of “Innovative SAKE” brewing to that of “traditional washu” brewing, we create new
Slide 34: Overseas Alcoholic Beverages Business (Western-style liquor)
Overseas Alcoholic Beverages Business (Western-style liquor) We aim to boost the value of our brands, such as Tomatin and Blanton’s, and achieve stable earnings growth ◇The Tomatin Distillery ◇Age International （Schotland, U.K.） （Kentucky, U.S.） IWSC2023 Silber Award ◆Net Sales ◆Net Sales (Millions
Slide 35: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 36: Business Model of Japanese Food Wholesale Business
Business Model of Japanese Food Wholesale Business Our Japanese Food Wholesale Business imports products via routes involving specialized trading companies or through direct trading, and sell them to local restaurants and supermarkets Products we handle (Produced in Japan/other countries) Wholesale
Slide 37: Business Sites of Japanese Food Wholesale Business
Business Sites of Japanese Food Wholesale Business Leveraging our worldwide network in the U.S., Europe and Australia to create synergy by way of sharing information on popular items and enhancing procurement capability 37
Slide 38: Trend in Net Sales of Japanese Food Wholesale Business
Trend in Net Sales of Japanese Food Wholesale Business Established a worldwide network since its entry to the market in the fiscal year ended March 31, 2011, and showing a rapid growth Minamoto ◇Trend in net sales of Japanese Food Wholesale Business Wholesale Yamasho （Billions of yen） 160 Takara Shu
Slide 39: Competitive Landscape in North America
Competitive Landscape in North America Although sales are expanding, the company is ranked third in market share in North America. Compared to its competitors, the number of sites is still small, so the company plans to further expand its bases in the future ◆Comparison of sales by competitors in No
Slide 40: Initiatives to expand sites (December 2022)
Initiatives to expand sites As of December 2022, the company has 9 sites in 8 states, mainly on the West Coast and East Coast where Japanese restaurants are concentrated, and only covers 4 of the top 10 states by number of Japanese restaurants. ◇Sites as of December 2022 〇Number of Japanese restaura
Slide 41: Initiatives to expand sites (January 2023)
Initiatives to expand sites As of January 2023, Yamasho, based in Illinois and Georgia, and K Sea Trading, based in Florida, will join the group, covering 9 of the top 10 states. ◇Sites as of January 2023 〇Number of Japanese restaurants *Yellow indicates our coverage area Number of 2022 Japanese res
Slide 42: Initiatives to expand sites (September 2023)
Initiatives to expand sites In September 2023, Minamoto Wholesale, based in Austin, Texas, joined the group. Texas ranks 4th in the U.S. in terms of the number of Japanese restaurants by state, with the highest growth rate among the top 5 states, and the company plans to strengthen sales in this exp
Slide 43: Plans to expand operations in Texas
Plans to expand operations in the rapidly growing state of Texas Following the M&A of Minamoto Wholesale Limited, LLC, we plan to open a new base in Houston in the fall of 2024. This will further strengthen sales in the surrounding areas, including major metropolitan areas in southern Texas ・ Locati
Slide 44: Strengths of Japanese Food Wholesale Business
Strengths of Takara Group’s Japanese Food Wholesale Business The Takara Group has its origins in production and sales of alcoholic beverages. As we boast know-how in alcoholic beverage sales and a wide variety of product lineup, bars and restaurants account for a large proportion of customers ◆Compo
Slide 45: Strengths of Japanese Food Wholesale Business
Strengths of Takara Group’s Japanese Food Wholesale Business We have high capability in proposing washu, with proposals offered by sommeliers specialized in washu and tasting seminars. Mutual Trading Co., Inc. has the No.1 sales in the U.S. sake market Tazaki Foods FOODEX Mutual Trading Section of l
Slide 46: Strengths of Japanese Food Wholesale Business
Strengths of Takara Group’s Japanese Food Wholesale Business In addition to rice, seasonings and processed products like ramen, along with seafood and meats, we offer a wide variety of lineup covering plates, take-out containers, sustainability-aware containers, vegan foods and allergen-free product
Slide 47: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 48: Collaboration with Takara Shuzo
Collaboration with Takara Shuzo We will gain maximum leverage from the engineering excellence and brand strength of Takara Shuzo and the Japanese food wholesale network of Takara Shuzo Int’l Group to bolster global awareness and acceptance of Washu and Japanese food through the Takara Group’s unique
Slide 49: Overseas Washu: Initiatives of Product development
Overseas Alcoholic Beverages Business (Washu) : <Initiatives of Product development> To nurture a high-quality brand image globally, launch high-added- value products from Sho Chiku Bai brand in overseas markets Takara Takara Shuzo Shuzo Int’l Group ◇Japanese sake exclusively for export For Hong Kon
Slide 50: Overseas Washu: TaKaRa CHU-HI in the U.S.
Overseas Alcoholic Beverages Business (Washu) : <Initiatives of Product development> In the U.S., which is the largest ready-to-drink products market, we released TaKaRa CHU-HI, a canned chu-hi product that meets the local needs Takara Takara Shuzo Shuzo Int’l Group A Japanese-born Chu-Hi with an au
Slide 51: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 52: Business overview of Takara Bio Group
Business overview of Takara Bio Group Our Bioindustry Business, which forms the bases for our technologies and profits, has biotech researchers around the world as its customers Reagents Instruments CDMO Reagent Kits PCR Instruments Gene analysis services RetroNectin® Single cell analysis system Cel
Slide 53: Providing PCR Reagents to Various Sectors
Providing PCR Reagents to Various Sectors Since the acquisition of exclusive domestic sales rights for PCR system in 1988, Takara Bio’s PCR reagents have been used for viral and bacterial detection in a range of fields from food and environment to application in clinical practices Tests of infectiou
Slide 54: Overseas Development of Reagent Business
Overseas Development of Reagent Business A “glocal” system to build a sales network across the globe by developing manufacturing sites in India, the U.S. and Europe, in addition to China and Japan Takara Bio Europe S.A.S. (96) ※number in () is the number of employees Takara Bio UK (6) Takara Biomedi
Slide 55: Market Environment: Positioning of Cellular Medicine and Gene Therapies
Market Environment: Positioning of Cellular Medicine and Gene Therapies Cellular medicine and gene therapies are positioned as focused investment areas in the government’s basic growth strategies ◇Basic Policy on Economic and Fiscal Management and Reform 2022 ◇The grand design and action plan for th
Slide 56: Market Environment: Market Size of Gene Therapies Area
Market Environment： Market Size of Gene Therapies Area Especially high growth rates are expected in the market size of gene therapies area Modality (therapeutic Global market size Growth rate approach) 2020 2030 in 10 years 48,000 55,000 Small molecule drugs 15% billion yen billion yen 140 2,000 Ex
Slide 57: Gene and Cell Processing Center
Gene and Cell Processing Center Takara Bio head office: One of the largest CDMO facilities in Japan for cellular medicine and gene therapeutic medicine Center for Gene and Cell Processing (CGCP) Building 2 Operation started in January 2020 Approx. 14,500 m2 Manufacture and quality inspection of gene
Slide 58: Gene and Cell Processing Center III Building Plan
Gene and Cell Processing Center Ⅲ Building Plan Gene and Cell Processing Center Ⅲ is scheduled to be completed in 2027 as a “dual-use” facility for large-scale manufacturing that will exceed the existing building 58
Slide 59: Business strategy
Business strategy Aim to become a global platform provider of infrastructure for the life science industry 59
Slide 60: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 61: Sustainability
Sustainability Long-term Management Vision「TaKaRa Group Challenge for the 100 th」 Vision ～Smiles in Life～ Contribute to the realization of healthy and fulfilling daily lives that are filled with connections between people and people’s smiles. It is necessary to take greater initiatives to resolve va
Slide 62: CO2 emissions reduction
CO2 emissions reduction Set CO2 emission reduction targets and develop a roadmap for achieving them. Takara Holdings and Takara Shuzo also calculate Scope 1+2+3 GHG (greenhouse gas) emissions, and have received third-party certification from the Japan Management Association for the calculation of GH
Slide 63: Switching to environmentally conscious product packages
Switching to environmentally conscious product packages Takara Bio Group adopted paper boxes or pouches made of aluminum-free PET film for packaging reagents, its mainstay products Shifted to packages using Switched from one side aluminum pouch FSC-certified materials to aluminum-free pouch and vege
Slide 64: Disclosure of alcohol content and human rights due diligence
Disclosure of the amount of alcohol contained, Implementing human rights due diligence processes Working to add information on the amount of alcohol contained in our products for consumers. Implementing human rights due diligence processes, including interviews with suppliers ◆Disclosure of the amou
Slide 65: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 66: Financial forecasts for the fiscal year ending March 31, 2024
Financial forecasts for the fiscal year ending March 31, 2024 announced November 9, 2023 ◆Financial forecasts for the fiscal year ending March 31, 2024 （Millions of Yen） Forecast Change YOY(%) Net Sales 341,000 ▲9,665 ▲2.8 Oparating Income 21,700 ▲16,245 ▲42.8 Ordinary Income 22,500 ▲16,206 ▲41.9 Ne
Slide 67: Trends in Operating income (Takara Shuzo)
Trends in Operating income（Takara Shuzo） While maintaining profit levels, promote brand development by increasing advertising expenses ◆Trends in operating income and advertising expenses (Billions of yen) 6 5.3 5 4.8 4.8 4.1 4.1 4 3.5 3 2.6 2.3 2 2 1.8 1 0 2020/3 2021/3 2022/3 2023/3 2024/3 Oparati
Slide 68: Trends in Operating income (Takara Shuzo Int'l Group)
Trends in Operating income（Takara Shuzo Int’l Group） Despite some impact from lockdowns of major overseas cities during the pandemic, operating income grew significantly due to a rapid recovery in bars/restaurants market and wider acceptance of Japanese food ◆Trends in operating income (Billions of
Slide 69: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial forecasts for the
Slide 70: Shareholder Return
Shareholder Return Financial policy ＜Medium-Term Management Plan for 2025＞ Create cashflow by increasing the efficiency of assets and through the sale of strategic shareholdings while enhancing global cash management, for the purpose of accelerating investments in growth and high-priority fields bas
Slide 71: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation, other than those based on historical fact, concerning the current plans, prospects, strategies and expectations of the Company and its Group represent forecasts of future results. While such statements are based on the conclusions of manage