Sapporo Holdings Limited · TSE:2501
Sapporo — FY2007 Earnings Presentation
23 slides from Sapporo's earnings presentation, Feb 18, 2008
Slide 1: Sapporo Group 2007 Results Presentation
Sapporo Group 2007 Results Presentation February 18, 2008 Sapporo Holdings Ltd. URL http://www.sapporoholdings.co.jp/
Slide 2: Agenda
Agenda ◇ 2006–2008 Medium-Term Management Plan Overview ◇ Sapporo Group's New Management Framework ◇ Sapporo Group's 2008–2009 Management Plan ○ Management goals ○ Measures toward achieving sustainable growth 1. Create high-value-added products and services 2. Form strategic alliances 3. Promote int
Slide 3: Overview of Previous Medium-Term Plan (2006–2008)
Overview of Previous Medium-Term Plan (2006–2008) Progress towards quantitative targets Medium-term plan 2006 actual 2007 actual Final target (2008) Consolidated net sales ¥435.0 bn ¥449.0 bn ¥520.0 bn (inclusive of liquor tax) Consolidated ¥8.6 bn ¥12.3 bn ¥28.0 bn operating income Balance of finan
Slide 4: Overview of Previous Medium-Term Plan: Performance by Segment
Overview of Previous Medium-Term Plan (2006–2008) Performance by Segment Medium-term plan 2006 actual 2007 actual Final target (2008) Alcoholic Beverages (Japan) ¥321.1 bn ¥315.8 bn ¥380.0 bn* Alcoholic Beverages Net sales (Overseas) ¥5.3 bn ¥27.7 bn － Soft Drinks ¥58.7 bn ¥52.2 bn ¥80.0 bn Restaura
Slide 5: Overview of Previous Medium-Term Plan: Progress towards major targets
Overview of Previous Medium-Term Plan (2006–2008) Progress towards major targets ○ Quantitative targets • Targets not achieved for the Alcoholic Beverages and Soft Drinks businesses >> Overview of previous consolidated 2007 results short of targets medium-term plan ○ Reduce costs by ¥10.0 bn (compar
Slide 6: Sapporo Group's 2008–2009 Management Plan
Sapporo Group's 2008–2009 Management Plan Roadmap to Bolstering Earnings Base and Creating Value
Slide 7: Sapporo Group's New Management Framework
Sapporo Group’s New Management Framework Medium- to long-term management policy with a view to 2016— 140th year since Group's founding (announced October 2007) Fundamental Strategy (1) Business domains Prioritized Allocation of • Creation of Value in Food Management Resources • Creation of Comfortab
Slide 8: Overview and Objectives of Management Plan
Sapporo Group's 2008–2009 Management Plan Overview and Objectives of Management Plan Management plan 2008–2009 Expansion through the creation of new value Measures toward Attain achieving sustained growth management goals for 2016 Trusted brands Utilization of strength to cultivated since expand bus
Slide 9: Crucial management plan themes and targets
Sapporo Group's 2008–2009 Management Plan Crucial management plan themes Targets and objectives ◇ Measures toward achieving sustainable growth ○ Create high-value-added products and services ○ Execute concrete measures towards ○ Form strategic alliances growth: expand ○ Promote international expansi
Slide 10: Management Goals (Consolidated Targets)
Management Goals (Consolidated Targets) New management 2007 actual 2008 target 2009 target framework goals (2016) Consolidated net sales ¥449.0 bn ¥449.2 bn ¥451.0 bn ¥600.0 bn (incl. liquor tax) Consolidated net sales ¥309.8 bn ¥311.1 bn ¥314.0 bn ¥450.0 bn (excl. liquor tax) Consolidated operating
Slide 11: Management Goals (Targets by Segment)
Management Goals (Targets by Segment) New management 2007 actual 2008 target 2009 target framework goals (2016) Alcoholic Beverages (Japan) ¥315.8 bn ¥323.2 bn ¥321.0 bn ¥350.0 bn Alcoholic Beverages Net sales (Overseas) ¥27.7 bn ¥28.6 bn ¥30.0 bn ¥42.0 bn Soft Drinks ¥52.2 bn ¥43.6 bn ¥43.0 bn ¥70.
Slide 12: Measures Toward Achieving Sustainable Growth
Measures Toward Achieving Sustainable Growth 11 Copyright 2008 SAPPORO HOLDINGS LTD. All rights reserved.
Slide 13: 1-1 Creation of High-Value-Added Products and Services: Alcoholic Beverages
1-1 Creation of High-Value-Added Products and Services Transition to high value-added in the Japanese Alcoholic Beverages business Goals for the Organization under the New Management Plan ◇ To achieve sustained growth, evolve to become a creator of alcoholic beverages culture — Transition to a busin
Slide 14: 1-2 High-Value-Added: Real Estate Group Properties
1-2 Creation of High-Value-Added Products and Services Enhance Value with a Focus on Group Properties in the Real Estate Business Goals for the Organization under the New Management Framework Efforts for 2008–2009 Establish a strong competitive Reinforce foundations with a view toward foundation for
Slide 15: 1-3 High-Value-Added: Restaurants Unique Brands
1-3 Creation of High-Value-Added Products and Services Strengthen loyalty to unique brands in the Restaurants business Goals for the Organization under the New Management Framework Efforts for 2008–2009 Expand business by strengthening Reinforce foundations with a view toward unique brands business
Slide 16: 2-1 Engage in Strategic Alliances: Soft Drinks
2-1 Engage in Strategic Alliances Restructure the Soft Drinks business toward establishing a stable earnings base Objective and details of Future efforts utilizing strategic alliances strategic alliances Re-engineer the business based on Toward being a major presence in the creation new frameworks o
Slide 17: 2-2 Engage in Strategic Alliances: Real Estate
2-2 Engage in Strategic Alliances Expand business domain of the Real Estate business Objective and details of Future efforts utilizing strategic alliances strategic alliances Strategic alliance with the Morgan ◇ Rapid implementation with a view to realizing Stanley Group the benefits of alliances —
Slide 18: 3. Promote International Expansion
3. Promote International Expansion International expansion in alcoholic beverages, soft drink, and foods Efforts in expanding areas Efforts in developing areas (North American market) (Asian markets) ◇ Aiming to expand superiority in the ◇ Start surveys in search of tangible premium beer genre in th
Slide 19: 4. Expand group synergies
4. Expand group synergies Reform Group frameworks toward the maximization of Group corporate value Harness Group synergies in research and development Beer ○ Organic collaboration through R&D frameworks (Group-K) Flavored — Promote R&D that fosters synergies and advancement at the -water Wine Group-
Slide 20: Basic Approach to Strategic Investment 2008–2009
Basic Approach to Strategic Investment 2008–2009 Over the two years, execute ¥45.0 bn in strategic investment, reduce financial liabilities by ¥35.0 bn Enhance Sustained enhancement of corporate Capital investment* ¥20.0 bn profitability Cash flow Business from restructuring toward operating creatio
Slide 21: Thank you for your attention.
Thank you for your attention. These materials contain forward-looking statements regarding but not limited to future earnings and future actions, circumstances, and occurrences. These statements are based on information available when these materials were prepared and are subject to risks and uncert
Slide 22: (Reference material) Net sales, operating income, ordinary income, and net income
(Reference material) Net sales, operating income, ordinary income, and net income billions of yen billions of yen 40.0 600.0 479.5 494.9 453.6 435.0 449.0 449.2 30.0 23.6 400.0 20.0 18.0 13.3 13.5 12.3 12.8 10.3 200.0 8.6 8.1 9.2 10.0 6.7 6.6 5.8 4.6 5.5 2.4 3.6 2.3 0.0 0.0 2003 2004 2005 2006 2007
Slide 23: (Reference material) Financial liabilities, capital investment, and depreciation and amortization
(Reference material) Financial liabilities, capital investment, and depreciation and amortization billions of yen billions of yen 40.0 323.3 289.8 300.0 30.0 28.4 236.0 27.1 25.3 220.7 25.3 21.8 200.0 20.0 23.8 23.0 22.0 21.9 8.8 8.3 100.0 10.0 212.4 180.0 12.5 0.0 0.0 2003 2004 2005 2006 2007 2008