Sapporo Holdings Limited · TSE:2501
Sapporo — H1 2013 Earnings Presentation
27 slides from Sapporo's earnings presentation, Aug 5, 2013
Slide 1: Sapporo Group Business Results Presentation for the Six Months ended June 30, 2013
2013 Sapporo Group Business Results Presentation for the Six Months ended June 30, 2013 August 5, 2013 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 1/27
Slide 2: Contents
Contents 1. First-Half 2013 Overview and Look Towards Second Half 2. Progress of Implementation of 2013 Basic Strategies 3. Overview of First-Half 2013 Results Reference: Management Targets 2013-2014 Reference: Supplementary information to First-Half 2013 Results Copyright, 2013 SAPPORO HOLDINGS LTD
Slide 3: 1. First-Half 2013 Overview and Look Towards Second Half
1. First-Half 2013 Overview and Look Towards Second Half Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 3/27
Slide 4: First-Half 2013 Overview and Look Towards Second Half
First-Half 2013 Overview and Look Towards Second Half Overview of First-Half 2013 Sales increased by ¥8.1 billion; operating income by ¥2.1 billion: Operating income, ordinary income and net income achieved profitability in the first half • Japanese Alcoholic Beverages: In addition to strong sales
Slide 5: 2. Progress of Implementation of 2013 Basic Strategies
2. Progress of Implementation of 2013 Basic Strategies Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 5/27
Slide 6: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Creating new opportunities for growth Restructuring of North American Production Facilities: International Business • Production of Sapporo brand products for the U.S. market from SLEEMAN BREWERIES in Canada outsourced to City Brewing Company, a
Slide 7: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Creating new opportunities for growth Reorganization of restaurant business in Singapore: Restaurants •Transfer of the restaurant business in Singapore from POKKA Corporation (Singapore) Pte. Ltd. to Sapporo Lion Limited in January •Decided to br
Slide 8: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Carrying out growth measures Activities to enhance the value of existing properties: Real Estate •In consideration of resolution of excess supply due to a spate of office building construction and recovery in rent levels in the real estate rental
Slide 9: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Carrying out growth measures State of progress in Alcoholic Beverages Business in Vietnam: International Business •Steady progress with sales volume in Vietnam, where full-scale marketing began in April 2012, and exports to neighboring countries
Slide 10: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Implementation Status of Strategic Investments (Including Ordinary Capex) Credit Ratings <Capital expenditure (cash basis) and lease fees> Consolidated total: Approx. ¥9.0 bn <Credit rating by JCR> Property, plant and equipment, intangible assets
Slide 11: 3. Overview of First-Half 2013 Results
3. Overview of First-Half 2013 Results Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 11/27
Slide 12: Overview of First-Half 2013 Results: Special Factors
Overview of First-Half 2013 Results: Special Factors Breakdown of special factors that prevent meaningful year-on-year comparisons between first half net sales and operating income in 2012 and 2013 are shown below. See the Supplementary Information to the Earnings Report for factors behind changes r
Slide 13: Overview of First-Half 2013 Results –Consolidated–
Overview of First-Half 2013 Results –Consolidated– (billions of yen) YoY change 2012 2Q 2013 2Q Amount % Consolidated net 223.0 231.2 8.1 3.7% sales Consolidated (1.7) 0.4 2.1 ― operating income Consolidated operating income before goodwill 0.1 2.4 2.3 1,301.7% amortization Consolidated ordinary inc
Slide 14: Overview of First-Half 2013 Results by Segment
Overview of First-Half 2013 Results by Segment Operating Income (billions of yen) YoY change 2012 2Q* 2013 2Q Amount % Japanese Alcoholic (2.6) 0.1 2.8 ― Beverages International (0.3) 0.3 0.6 ― North America, other 0.5 1.2 0.7 148.6% Vietnam (0.8) (0.9) (0.0) ― Food & Soft Drinks (1.1) (2.4) (1.2) ―
Slide 15: Reference: 2013-2014 Management Targets
Reference: 2013-2014 Management Targets *2013-2014 management targets are unchanged from the figures announced on February 8, 2013. Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 15/27
Slide 16: 2013-2014 Management Targets
2013-2014 Management Targets Consolidated targets 2006 results 2012 results 2013 targets 2014 targets 2016 targets Consolidated net sales ¥435.0 bn ¥600.0 bn *incl. liquor taxes ¥492.4 bn ¥512.0 bn ¥533.0 bn (excl. liquor taxes) ¥294.0 bn ¥379.7 bn ¥397.3 bn ¥416.0 bn ¥450.0 bn Consolidated operatin
Slide 17: 2013-2014 Management Targets by Segment
2013-2014 Management Targets by Segment Targets 2012 results* 2013 targets 2014 targets Japanese Alcoholic Beverages ¥269.9 bn ¥275.2 bn ¥283.5 bn International Business ¥36.1 bn ¥43.3 bn ¥46.4 bn Food & Soft Drinks ¥129.0 bn ¥136.5 bn ¥145.5 bn Net sales Restaurants ¥26.6 bn ¥26.8 bn ¥28.2 bn Real
Slide 18: Reference: Supplementary Information to First-Half 2013 Results
Reference: Supplementary Information to First-Half 2013 Results For information on the profitability of each business, see the Supplementary Information to our Earnings Report. Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 18/27
Slide 19: Japanese Alcoholic Beverages (1)
Japanese Alcoholic Beverages (1) (billions of yen) YoY change Results highlights *Incl. liquor taxes 2012 2Q 2013 2Q Amount % Net sales increased year over year: a year-over-year decline in total sales volumes for beer and beer-type beverages as sales Net sales* 120.3 120.5 0.1 0.2% volume of beer e
Slide 20: Japanese Alcoholic Beverages (2)
Japanese Alcoholic Beverages (2) Key points in business plan: implementation status Wine 1. Bolstering of brand strength of core products Total net sales rose year over year on growth from imported wines in addition to higher sales of domestic wines. Goku zero, the world’s first beer-type bevera
Slide 21: International Business
International Business YoY change (billions of yen) Results highlights 2012 2Q 2013 2Q Amount % Net sales increased 44.2% year over year as a result of growth Net sales 16.0 23.0 7.0 44.2% on local currency basis, mainly in North America, the impact of yen depreciation, and the addition of the Jan-M
Slide 22: Food & Soft Drinks (1)
Food & Soft Drinks (1) (billions of yen) YoY change Results highlights 2012 2Q 2013 2Q Amount % While domestic beverages sales declined due to the impact of integration preparations in 2012, overall sales increased with a Net sales 59.5 60.7 1.2 2.1% net increase from the consolidation of Pokka Ace
Slide 23: Food & Soft Drinks (2)
Food & Soft Drinks (2) Key points in business plan: implementation status ■ Soft Drinks (International): POKKA Corporation (Singapore) Pte Ltd ■ Restaurants (Domestic): POKKA CREATE Co., Ltd. 1. Expand into countries neighboring Singapore 1. Accelerate opening of highly profitable outlets: new Mar
Slide 24: Restaurants
Restaurants Results highlights (billions of yen) Net sales increased as cumulative sales at existing outlets exceeded the YoY change previous year’s level, at 101%, and thanks to the contribution from new outlets opened last year. Operating loss narrowed due to the sales 2012 2Q 2013 2Q Amount % inc
Slide 25: Real Estate (1)
Real Estate (1) (billions of yen) YoY change Results highlights 2012 2Q 2013 2Q Amount % A stable revenue structure was maintained amid weakening of rent levels in the Tokyo metropolitan area office leasing Net sales 11.2 11.0 (0.2) (2.5%) market. Operating Key points in business plan: implementatio
Slide 26: Real Estate (2)
Real Estate (2) Overview of Real Estate Business The majority of operating income from the Real Estate business is from real estate leasing. – The property portfolio largely comprises properties in Tokyo (5 central wards: see previous page). – Unrealized gain on real estate for lease was ¥125.7 bi
Slide 27: To make people's lives richer and more enjoyable.
To make people’s lives richer and more enjoyable. The earnings forecasts and forward-looking statements appearing in this document were prepared by the SAPPORO Group based on currently available information and its best assessment of potential risks and uncertainties. Actual outcomes may differ mate