Asahi Group Holdings Ltd · TSE:2502
Asahi — Asahi Breweries — FY2008 Earnings Presentation
19 slides from Asahi's earnings presentation, February 2009
Slide 1: 2008 Financial Results Briefing
2008 Financial Results Briefing February 2009 ASAHI BREWERIES, Ltd. URL http://www.asahibeer.co.jp
Slide 2: Contents
Contents Overview of 2008 Results………………….….……………… 1 Overview of 2008……………………………………………… 2 2009 Performance Forecast……………….…….…………… 3 Progress of Third Medium-Term Management Plan..….. 4 Beer-Type Beverages 2008 Sales…….……………...….. 5 Beer-Type Beverages 2009 Sales Targets………….…… 6 Beer-Type Beverages
Slide 3: Overview of 2008 Results
Overview of 2008 Results (billions of yen) (billions of yen) 2008 2007 120.0 1,500.0 1,020 1,031 11 1% 1,464.1 1,462.7 1,444.2 1,446.4 297 268 +28 11% 1,430.0 82 69 +13 18% 100.0 101.2 1,400.0 43 55 12 22% 94.5 22 41 19 47% 90.2 88.7 Net Sales 1,463 1,464 80.0 87.0 1 0% 1,300.0 91 80 +11 14% 5 8 4 4
Slide 4: Overview of 2008
Overview of 2008 Medium-Term Business Strategy (2007 – 2009) Alcoholic Reinforce the foundations of Asahi brands, focusing on Asahi Super Dry Beverages Business Î Produce stable, long-term cash flows Further growth of existing group companies Pursue synergies with new additions to our operating base
Slide 5: 2009 Performance Forecast
2009 Performance Forecast (billions of yen) (billions of yen) 2008 2007 120.0 1,490.0 1,500.0 1,027 1,020 +7 1% 1,464.1 1,462.7 1,446.4 310 297 +13 5% 1,430.0 96 82 +14 18% 100.0 1,400.0 37 43 6 14% 94.5 92.0 20 22 2 9% 90.2 88.7 80.0 87.0 Net Sales 1,490 1,463 +27 2% 1,300.0 83 91 8 9% 7 5 +3 61% 6
Slide 6: Progress of Third Medium-Term Management Plan
Progress of Third Medium-Term Management Plan Evaluation of qualitative targets (1) Reinforce the brand foundations in the Alcoholic Beverages Business through measures including ++ earnings structure reform Î Produce stable cash flows (2) Further growth in existing group companies – (3) Pursue syne
Slide 7: Beer-Type Beverages 2008 Sales
Beer-Type Beverages 2008 Sales Beer and Beer-Type Beverages: Taxable Sales Volume (Jan – Dec 2008) Industry total Asahi Breweries Cases YoY change Composition Cases YoY change Market share Beer 256.12 (6.5%) 53.1% 129.27 (4.4%) 50.5% Happoshu 112.36 (7.7%) 23.3% 29.18 (13.5%) 26.0% New genre 114.20
Slide 8: Beer-Type Beverages 2009 Sales Targets
Beer-Type Beverages 2009 Sales Targets 2009 market outlook 09 vs 08 Around 1–2% decline Beer Approx -4-5% for beer-type Happoshu Approx -7-8% beverages overall New Genre Approx +8-9% 2009 sales targets by brand 2009 target 2008 YoY(%) Super Dry 122.50 125.30 (2.2%) Jukusen 2.20 2.01 9.5% Other 1.30
Slide 9: Beer-Type Beverages 2009 Brand Strategy
Beer-Type Beverages 2009 Brand Strategy Expand Expand market market share share by by launching launching products products in in each each segment segment and and building building them them into into top top brands brands Beer Market Super Dry: Boost brand value through the “Challenge and Commitme
Slide 10: Other Alcoholic Beverages Results and Strategy
Other Alcoholic Beverages Results and Strategy 2008 overview -- Sales Sales declined declined due due to to reviews reviews of of terms terms of of trade trade for for RTD RTD beverages, beverages, lacklack of of significant significant introduction introduction of of new new products products compa
Slide 11: Streamlining Marketing Costs
Streamlining Marketing Costs Advertising and sales promotion expenses by category 2002 2003 2004 2005 2006 2007 2008 2009 plan Sales promotion 67.9 77.9 76.3 77.8 80.8 77.9 64.9 (13.0) 68.7 3.8 expenses Advertising 38.1 31.2 32.3 32.2 32.7 34.9 32.3 (2.6) 27.4 (4.9) expenses Total 106.0 109.1 108.6
Slide 12: Soft Drinks Business Overview and Strategy
Soft Drinks Business Overview and Strategy Asahi Soft Drinks Co., Ltd. Growth Strategies, Structural Reform, and Taking on Challenges in New Areas - Key brands Wonda and Mitsuya achieved sales of 30 million cases (two consecutive years for Mitsuya) Total sales volume rose 11%, outperforming the indu
Slide 13: Food and Healthcare Business Overview and Strategy
Food and Healthcare Business Overview and Strategy Asahi Food and Healthcare Co., Ltd. Accelerate growth strategies and structural reform - Strong sales of core products including Mintia, Balance Up, and Dear Natura. Mail order sales also have been brisk - Achieved four consecutive terms of growth i
Slide 14: Overseas Business Overview and Strategy
Overseas Business Overview and Strategy Chinese beer business - Did not achieve sales targets due to more intense competition from national brands. Profits improved on the year thanks to streamlining efforts Work continuously to curb cost of goods manufactured and to reduce fixed costs, including SG
Slide 15: Overseas Business M&As (1)
Overseas Business M&As (1) Acquisition of Schweppes Australia (million AUD) 2007 results Cadbury Schweppes (Australia) Sales 749 Confectionary division Beverage division EBITDA 78 Total business assets 636 Split No. 2 Australian beverage maker Schweppes Australia Cost of acquisition: AUD1,185m cash
Slide 16: Overseas Business M&As (2)
Overseas Business M&As (2) Tsingtao Brewery Investment in Tsingtao Brewery performance trends (million yuan) (million yuan) 13,530 Anheuser-Busch Anheuser-Busch InBev InBev 1,200 13,074 14,000 11,677 12,000 Tsingtao Brewery Co. 1,000 10,020 Equity stake: 19.99% 10,000 800 8,621 Total acquisition cos
Slide 17: Reference: Overseas Business and Capital Alliances
Reference: Overseas Business and Capital Alliances Tingyi-Asahi-Itochu Beverages Holding 40% Investment in No. 2 Chinese soft drinks maker Tsingtao Brewery 20% Baltica (Russia) Investment in No.2 Chinese beer maker Beijing Beer Asahi 47% Molson Coors (Canada) Shepherd Neame (U.K.) Yantai Beer Tsingt
Slide 18: Shareholder Return Policy
Shareholder Return Policy Net income and total dividends Policy on returns to shareholders Enhance Enhance total total shareholder shareholder returns returns by by aiming aiming to to increase increase dividends dividends (target (target consolidated consolidated payout payout ratio ratio (billions
Slide 19: Information in this material is not intended to solicit sale or purchase of shares
Information in this material is not intended to solicit sale or purchase of shares in Asahi Breweries. The views, estimates, and other information expressed in this document are based on the company’s judgment at the time of publication, and no guarantees are provided regarding the accuracy of such