Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Nomura Investment Forum 2011
22 slides from Kirin's conference presentation, November 2011
Slide 1: Kirin Holdings - Nomura Investment Forum 2011
Kirin Holdings Nomura Investment Forum 2011 Tokyo - November, 2011 1
Slide 2: Vision for an ambitious new growth trajectory
Vision for an ambitious new growth trajectory KV2015 Group Vision Nurture close links with customers through products that provide the enjoyment of food and well-being Integrate our expertise in fermentation and biotechnology, manufacturing, and research and marketing to create value and offer dis
Slide 3: Agenda
Agenda Integrated beverage group strategy Leveraging our strengths to go global Financial performance and strategy 3
Slide 4: Japanese market remains very important for growth
Japanese market remains very important for growth… Japanese market offers strong, stable cash flow and is still the largest source of profit despite downward population trend. (%) 20 Kirin Brewery - Domestic Alcohol Beverages OP OP margin margin Cost competitiveness improved in the last 10 years -
Slide 5: Integrated beverages strategy: Optimize Group Synergies
…under our integrated beverages strategy. Optimize Group Synergies Brand management Overall Management Joint operations New business development New Product & category Human resource links R&D Personnel development Sales & Procurement Production Distribution Services Marketing Collaboration througho
Slide 6: Success in key categories showcases our strengths
Success in key categories showcases our strengths Nodogoshi Nama No.1* in total sales for 6 straight years in the fast-growing New Genre market Category composition** (%) 100% 19.3% 80% 38.7% New New genre genre 60% Happo-shu 40% Beer 20% 0% FY2006 FY2011 3Q *According to the category definition by
Slide 7: Market-changing innovation in RTDs
Market-changing innovation in RTDs Hyoketsu has been a leading brand in the growing RTD category since its launch in 2001. 7
Slide 8: Creating a new category in black tea with novel concept
Creating a new category in black tea with novel concept Our innovative Espresso Tea is an entirely new concept that merges the black tea and coffee categories. 8
Slide 9: Active group-wide initiatives for top-line growth
Active group-wide initiatives for top-line growth… Joint product developments Mercian x Lion Kirin Plus-i Kirin Brewery x Kirin Beverage Kirin Brewery x Mercian 9
Slide 10: Bottom-line growth under our integrated beverages strategy
…and bottom-line growth under our integrated beverages strategy. Cost competitiveness has improved by integrating the value chain across group companies. (Billion yen) 2011(E) 4.0 2011(E) 4.7 10.1 2010 8.2 0.7 2011(E) 2010 3.8 5.0 4.0 2010 2.9 2012 Target 2012 Target 2012 Target Production & Logisti
Slide 11: We are also succeeding in pharmaceuticals
We are also succeeding in pharmaceuticals Aiming to become a global specialty pharmaceutical company leveraging outstanding biotechnology Strong presence in the ESA market with NESP® and ESPO® Outstanding core technology in antibodies Strong pipeline Substantial contribution to Kirin Group with
Slide 12: Leveraging our strengths to go global
Integrated beverage group strategy Leveraging our strengths to go global Financial performance and strategy 12
Slide 13: Using integrated beverage strategy to globalize
Using integrated beverage strategy to globalize Solid business foundation in Asia and Oceania, and now pursuing further growth by entering Brazil. China China Resource Enterprise SE Asia [Philippine] San Miguel Brewery [Singapore & Malaysia] Brazil Fraser and Neave Oceania [Vietnam] Schincariol Inte
Slide 14: Working with excellent partners in Southeast Asia
Working with excellent partners in Southeast Asia What are we aiming for? Sharing distribution channels Joint product development OEM arrangements Joint procurement Singapore Philippines Kirin Holdings Singapore Fraser and Neave San Miguel Brewery Thailand Vietnam Siam Kirin Beverage Interfood
Slide 15: JV with partner in China
JV with partner in China China Resources Enterprise KIRIN Strong distribution network Capabilities in: Low cost operation Product development Earning a high margin in water market Technical standards Research marketing JV: China Resources Kirin Beverages (Greater China) Company [Targets of JV
Slide 16: Entering a huge emerging market: Brazil
Entering a huge emerging market: Brazil Taking the first step in Brazil as we look beyond Asia and Oceania for new sources of growth Beer Soft drinks Market share: Approx.15% Market share: Approx5% Market position: #2 Market position: #3* [Mid-long term targets] Sales: Grow at more than 10% per year
Slide 17: Pursuing sustainable growth in Oceania
Pursuing sustainable growth in Oceania Strong presence in Australian market, which offers stable growth and further potential. Beer Sustaining high profitability by: Excellent management Driving innovation and the shift to premium Enhancing multi beverage strategy in NZ Market position: #2 Soft d
Slide 18: Financial performance and strategy
Integrated beverage group strategy Leveraging our strengths to go global Financial performance and strategy 18
Slide 19: Cash ROE target for 2012 has already been achieved
Cash ROE target for 2012 has already been achieved Financial performance: Targets & Results (billion yen ) Target 2010 actual 2011 plan ** YoY change 2012 Net sales excluding liquor tax 1,835.2 1,782.0 (2.9)% 2,130.0 Operating income 193.6 191.3 (1.1)% 231.0 Operating margin(% )* 10.5 10.7 +0.2 10.8
Slide 20: Comprehensive approach to maximize cash flow
Comprehensive approach to maximize cash flow… Financial strategy for MTBP2010 Total shareholder returns Increased Operating CF Shareholder returns 2010-2012 operating CF ¥620 bn Cash Flow Debt repayment Investment for growth 2010-2012 capex ¥260 bn 2010-2012 assets to Capital structure be liquidated
Slide 21: Improve shareholder returns
…and improve shareholder returns. Dividends have steadily increased since the start of KV2015. Dividend policy in KV2015: Consolidated payout ratio over 30% (yen) 30 Kirin Group Vision 2015 25 20 Stage3. Stage3. 2013MTBP 2013MTBP 15 Stage2. Stage2. 10 2010MTBP 2010MTBP Stage1. Stage1. 5 2007MTBP 200
Slide 22: Disclaimer
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