Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Investor Presentation (November 2009)
17 slides from Kirin's investor presentation, November 2009
Slide 1: Maximizing earnings from the new, truly international Kirin Group
2010—2012 Medium-term Business Plan Maximizing earnings from the new, truly international Kirin Group November 2009 KIRIN HOLDINGS COMPANY, LIMITED
Slide 2: Kirin today is…
Kirin today is… …much bigger, much better • Consolidated sales more than 50% higher than only three years ago • Back on top of Japan’s beer market Jan-September 2009 • Balanced portfolio of businesses • Successfully integrating acquisitions in alcohol, pharma and foods • Expanding in Asia and Oceani
Slide 3: KV2015: Vision for a bold new growth trajectory
KV2015: Vision for a bold new growth trajectory Our vision, articulated in 2006: To be a leading food & health company in Asia and Oceania, with core businesses in alcohol beverages, soft drinks & foods, and pharmaceuticals Pursue an integrated beverages strategy Revitalize and use domestic alcoho
Slide 4: 2007 MTBP review: Kick-starting growth
2007 MTBP review: Kick-starting growth Achieved quantitative expansion Rapidly expanded business scale as a basis for long-term growth Strengthened domestic alcohol business as foundation for growth strategy Did not achieve sufficient growth in profitability Strategic investment for scale Stronger d
Slide 5: Major growth initiatives 2007-2009
Major growth initiatives 2007-2009 2009 * 100% Lion Nathan * 48% San Miguel 2008 * 100% Dairy Farmers 2007 * 100% National Foods * Kyowa Hakko * Mercian 5
Slide 6: Becoming truly international
Becoming truly international Focusing on Asia and Oceania Japan 73% Asia and Oceania 23% Rest of world 4% FY2009e** The world’s economic engine 6
Slide 7: 2010 marks start of new developmental stage
2010 marks start of new developmental stage Stage Stage 3: 3: 2013 2013 MTBP MTBP (2013-2015) (2013-2015) Stage Stage 2: 2: 2010 2010 MTBP MTBP (2010-2012) (2010-2012) Stage Stage 1: 1: 2007 2007 MTBP MTBP (2007-2009) (2007-2009) Three years of implementation to Three years to kick-start increase pr
Slide 8: Focusing on qualitative growth—in profit, portfolio and products
2010 MTBP: basic strategic Focusing on qualitative growth—in profit, portfolio and products Op era tion al s up po y Ａ rt s tra Generate Group om pan ny B C teg y synergies C pa ny ComCompa ny D pa Com Pursue unique integrated Portfolio strategy Co m beverages group strategy Sales/marketing p an yB
Slide 9: 2012 target numbers
2012 target numbers Targets 2009e 2012 plan Change 2015 targets （Unit: billions of yen） revised Sales Excluding liquor tax 1,930.0 2,130.0 200.0 2,500 Operating income Prior to amortization of goodwill 154.0 231.0 77.0 After amortization of goodwill 125.0 188.0 63.0 250 OP ratio (％） Excl. liquor tax
Slide 10: 2012 target sales by segment and growth in operating income
2012 target sales by segment and growth in operating income Sales by segment Guidelines 2009e 2012 Change 2015 targets revised plan Sales by segment Alcohol beverages 1,103.0 1,167.0 64.0 SD and foods 754.0 815.0 61.0 Pharma 205.0 225.0 20.0 Other 238.0 283.0 45.0 Sales total Incl. liquor tax 2,300
Slide 11: CCTs: Generating synergies Groupwide
CCTs: Generating synergies Groupwide Horizontal teams have been created to identify and implement synergy initiatives across the entire Group Targeting minimum of ¥20 billion in synergies Cross Company Team Target impact on operating income during 2010 MTBP Production and distribution ¥5.0 bn Procur
Slide 12: Financial strategy to significantly increase cash flow
Financial strategy to significantly increase cash flow Increased Increased operating operating CF CF Shareholder returns Dividends: Consolidated payout 2010-2012 operating CF Shareholder ratio 30% + ¥620 bn (vs. ¥410 bn) returns Investment Capital structure Intensively allocate resources as appropri
Slide 13: 2010 MTBP: Kirin Brewery
2010 MTBP: Kirin Brewery Maintain great momentum. Hit costs hard. Build on clear market leadership in core categories Keep the hit products coming (Kirin FREE, Nodogoshi,etc.) Create synergies from integrated alcohol and soft drink businesses Reform structure to increase profit: improve capa
Slide 14: 2010 MTBP: Kirin Beverage
2010 MTBP: Kirin Beverage Focus on profit with core brands. Having revised previous MTBP in 2008 to focus on profit-oriented strategy in a tough competitive environment, KBC will go deeper and narrower with core brands. The aims under the 2010 MTBP are to: Rebuild competitive capacities Use brand st
Slide 15: 2010 MTBP: Kyowa Hakko Kirin
2010 MTBP: Kyowa Hakko Kirin Lead in core areas as a global specialty pharmaceutical company . Business integration has progressed very well. We are making steady progress in realizing our vision for 2012 of having higher productivity throughout the organization and ongoing new drug development as a
Slide 16: 2010 MTBP: Lion Nathan National Foods Pty Ltd
2010 MTBP: Lion Nathan National Foods Pty Ltd Develop outstanding potential as Australasia’s largest New holding company to manage LN and NF based on strong management management team from LN F&B corporation Lion LionNathan NathanNational NationalFoods Foods New governance Lion structure from LionNa
Slide 17: 2010 MTBP: Targeting highly realizable qualitative growth
2010 MTBP: Targeting highly realizable qualitative growth Using CCT synergies and other management-driven processes to improve performance, rather than relying on top-line growth Targeting strong upside potential to increase profitability of business portfolio. Pursuing measures that can be achieved
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