Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Investor Presentation (June 2016)
19 slides from Kirin's investor presentation, Jun 7, 2016
Slide 1: Turn Around Brasil Kirin
Turn Around Brasil Kirin June 7, 2016 Tokyo Brasil Kirin CEO André Salles ブラジルキリン CEO アンドレ・サーレス
Slide 2: Macroeconomics
Macroeconomics マクロ経済 Structurally, Brazil is a large and attractive market … 本来ブラジルは巨大で魅力的なマーケットであるが、 7th largest economy Natural resources Moderate growth • GDP U$2.2T in 2014 • #1 exporter sugar/ coffee • Average growth of 3.2% • #2 exporter soybeans between 2004-2014 • 5th largest domestic market
Slide 3: Brazil is one of the largest beverage markets
Brazil is one of the largest beverage markets ブラジルは、最大の酒類・飲料市場の一つ #3 BEER MARKET #3 CARBONATED DRINK MARKET 2015 Volume 2015 Volume (MHL) (MHL) CAGR CAGR HL/per CAGR CAGR HL/per (10-14) (14-15) capita (10-14) (14-15) capita China 474 2.5% -5.3% 0.3 USA 488 -1.6% -1.9% 1.5 US 246 0.1% 2.5% 0.8 Mexico
Slide 4: History of Brasil Kirin
History of Brasil Kirin ブラジルキリンの沿革 • Acquisition of Eisenbahn • Launch of the first beer • Start of production of the brand: Schincariol • Kirin Holdings acquires soft drink Itubaína – still in • Launch of Skinka (fruit 100% of Schincariol Brasil Kirin’s portfolio punch) and Glacial (beer) Group 193
Slide 5: Overview of Brasil Kirin
Overview of Brasil Kirin ブラジルキリン概要 • 11% beer market share and 5% soft drinks market share Market position • Available in 550.000+ outlets • # 2 beer brand in the Northeast (Schin) • Most complete craft beer portfolio (Eisenbahn, Ichiban and Baden) Portfolio • Full beverage portfolio (CSD, Water, Fr
Slide 6: My assessment of the business in 2015
My assessment of the business in 2015 2015年CEO就任時の私の評価 Competitive position Portfolio Go to Market 競争上のポジション ポートフォリオ 市場へのリーチ • Strong market position in • Broad beverage portfolio • Nationwide distribution north and northeast, but (beer, CSD, water, juice, system through own and recent competitor en
Slide 7: Brasil Kirin Medium-term Business Plan
Brasil Kirin Medium-term Business Plan ブラジルキリン中期経営計画 LONG TERM VISION STATEMENT Quench the thirst of consumers with value brands and high performance services, engaging people to create shared value 価値あるブランドと質の高いサービスにより消費者の渇きを潤し、ステークホルダーと共有価値を創造する関係づくりを行う Four strategic pillars 4本の戦略の柱 1 2 3 4 Execu
Slide 8: Portfolio strategy
1 Portfolio strategy ブランドポートフォリオの戦略 BRAZIL KIRIN PORTFOLIO REPOSITIONING SEGMENTS ACTUAL SCENARIO FUTURE SCENARIO CRAFT 0.3 MHL Strengthen International インターナショ ナルプレミアム Premium segment INTERNATIONAL の強化 PREMIUM SEGMENT 7.2 MHL Increase relevance in mainstream segment レギュラー価格帯 での接点を増やす MAINSTREAM 102
Slide 9: Brand enhancement initiatives
1 Brand enhancement initiatives ブランド強化の取り組み THREE CORE REGIONS DEFINED FOCUS PER CORE REGION Clear message North/ Northeast and focus: 北部・北東部 RR AP where & how to play - Sales volume recovery 販売数量回復 - Focus on Schin brand 「スキン」ブランドに集中 - Balanced prices RN 適切にバランスのとれた価格設定 AM MA CE PA PB PI PE Southea
Slide 10: Strengthening execution capabilities
2 Strengthening execution capabilities 戦略遂行力強化 Objectivity and focus • Occasion • Brand • Packaging Execution 戦略遂行 • Price • Channel 店頭装飾 POS dress-up Sales force Price aligned automation to strategy 営業活動の 戦略に オートメーション化 沿った 価格 テーブルやグラス等の Investment kit Focus on profitable 協賛品 (e.g. table and glass)
Slide 11: Optimize organization and assets
3 Optimize organization and assets 組織・資産の最適化 Corporate Cost items Distribution expenses and services centers 本社費用 コストアイテム、委託業務 自社ディストリビューション・センター Company Raw material, Optimization of restructuring package and assets and and reduction of service contracts truck occupancy corporate renegotiation expe
Slide 12: Production footprint optimization
3 Production footprint optimization 生産拠点の最適化 CURRENT FOOTPRINT RATIONALE RR AP • Sale of Macacu plant to Ambev マカク工場をambev社へ売却 AM PA MA CE RN - Pending antitrust PB PI PE regulation approval AL 公正取引規制の承認待ち RO TO BA SE - There is free capacity to MT absorb volume GO マカク工場カバー地域の販売数量を生産する MG 余力あり MS SP
Slide 13: Culture Change
4 Culture Change 企業文化の変革 MARKET ORIENTED RESULTS FOCUS LEAN AND AGILE マーケット・イン 結果重視 ムダなく、スピーディ • Create market driven • Cultural transformation • Simplify processes mindset - Current culture mapping - 2 functions: you either sell - Design of “where we want to • Meritocratic culture or help to sell b
Slide 14: Brasil Kirin: First Quarter Update
Brasil Kirin: First Quarter Update 第1四半期進捗 SALES VOLUME GROWTH IN BEER & CSD Quarterly sales volume growth (vs year ago) Market share gain: Sales volume 20% -Beer +1,5pp & share -CSD +0,8pp 15% recovery 10% 5% 0% -5% Premium growth -10% -15% -20% -25% Cost -30% reduction & 12-1Q 12-2Q 12-3Q 12-4Q 13
Slide 15: Brasil Kirin: First Quarter Update
Brasil Kirin: First Quarter Update 第1四半期進捗 OUTLET PENETRATION INCREASE VOLUME GROWTH POS premium outlet penetration Premium volume Sales volume increase (indexed in 1Q2015) & share (in # of POS) +341% 500 +305% recovery 405 400 Premium 300 growth 200 Cost 100 100 reduction & efficiency gains 0 1Q201
Slide 16: Brasil Kirin: First Quarter Update
Brasil Kirin: First Quarter Update 第1四半期進捗 MEANINGFUL COST DECREASE SINCE 3Q15 DISTRIBUTION VARIABLE G&A DECREASE EXPENSES CONVERSION COSTS Sales volume 一般管理費削減 運搬費 変動加工費 & share Indexed in 1Q2015 value Indexed in 1Q2015 value Indexed in 1Q2015 value (R$M) -1% (R$/HL) -13% (R$/HL) -3% recovery 100 9
Slide 17: Close alignment of Brasil Kirin with Kirin Holdings
Close alignment of Brasil Kirin with Kirin Holdings キリンホールディングスとの緊密な連携 How does the コミュニケーションはどのように communication work? 機能しているか？ • Brasil Kirin’s Mid Term Business Plan aligned to Kirin Holding strategy • Brasil Kirin’s board with four members from the holding • Monthly meetings in Japan or through
Slide 18: The CEO
The CEO BACKGROUND • 15+ years experience in the beverage market • Turnaround in different industries • Experience in beer and carbonated drink • Professional career with emphasis in distribution/commercial - Turnaround of Würth Argentina and Norsa (Coke bottler) - 2.7 p.p. market share growth and 4
Slide 19: Thank you
BRASIL KIRIN
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