Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2012 Earnings Presentation
32 slides from Asahi's earnings presentation, February 2013
Slide 1: Medium-Term Management Plan 2015 / 2012 Financial Results Briefing
February 2013 Medium-Term Management Plan 2015 2012 Financial Results Briefing 2013 Business Policy Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 2: Long-Term Vision 2020 & Medium-Term Management Plan 2015
Long-Term Vision 2020 & Medium-Term Management Plan 2015 Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 3: Executive Summary
Executive Summary ◆ Under Medium-Term Management Plan 2012, the Asahi Group improved profitability in existing businesses and expanded a new foundation for growth. However, issues remain, principally the inability to achieve the profit targets in the soft drinks and food businesses. ◆ The Company ha
Slide 4: Overview of Medium-Term Management Plan 2012
Overview of Medium-Term Management Plan 2012 Despite profitability improvement in existing businesses and expansion of the foundation for growth, profit targets were not achieved in the soft drinks and food businesses. ◆Improvement of Profitability in Existing Businesses (Achievement of Quantitative
Slide 5: Overview of Long-Term Vision 2020
Overview of Long-Term Vision 2020 Striving to be a corporate group trusted around the world through the kando of food (deliciousness, happiness and innovation) The Asahi Group defines kando as experiencing the “deliciousness, happiness and innovation beyond customer expectations” offered by the prod
Slide 6: Medium-Term Management Plan 2015 Growth Strategy
Medium-Term Management Plan 2015 Growth Strategy Realization of long-term, stable growth through value and network management Expansion of overseas growth networks through M&As Growth from existing and alliances businesses leveraging strengths developed in Japan Resources Innovation Area axis (Devel
Slide 7: Medium-Term Management Plan 2015 Quantitative Targets
Medium-Term Management Plan 2015 Quantitative Targets Aim for sustainable growth in ROE and EPS through capital efficiency improvement by means including shareholder returns, placing the highest priority on sales and profit growth. ◆ Key Performance Indicators (KPIs) 2012 Result 2015 Target Before G
Slide 8: Initiatives for ROE Improvement
Initiatives for ROE Improvement Holding Company Operating Companies ・Profit base expansion through business investment ・Improvement of the category mix and product mix through and other means of network expansion in Japan and Net profit margin nurturing strong brands based on value and network overs
Slide 9: Financial and Cash Flow Strategy
Financial and Cash Flow Strategy Policies in Medium-Term Management Plan 2015 ・Seek stable profit growth based on “value and network management”. Operating cash flow ⇒ Generate ¥400.0 bn. or more in operating cash flow during the medium-term management plan. ・Invest approx. ¥120.0 bn. in capital exp
Slide 10: Guidelines and Profit Structure Reforms by Business
Guidelines and Profit Structure Reforms by Business ◆ 2015 Business Results Guideline by Business Net Sales Operating Margin 2012 Result 2015 Guideline (CAGR) 2012 Result 2015 Guideline Alcoholic beverages 944.0 bn. 0～1% 12.0% 12.5% or higher Soft drinks 375.4 bn. 10% or higher 2.7% 5.5% or higher F
Slide 11: Alcoholic Beverage Business Strategy
Alcoholic Beverage Business Strategy Aspire to be the leading integrated alcoholic beverages company through the creation of added value by focusing on the 3Cs (consumers, channels, competitors). 2012 Result 2015 Guideline Net sales ¥944.0 bn. CAGR rate: 0～1% *Beer-type beverage market: CAGR of ▲1%
Slide 12: Soft Drinks Business Strategy
Soft Drinks Business Strategy Focus resources on strong core brands and firmly establish an industry-leading profit base through powerful sales capabilities and network expansion. 2012 Result 2015 Guideline Net sales ¥375.4 bn. CAGR rate: 10% or higher *Growth rate for Calpis, excluding consolidatio
Slide 13: Food Business Strategy
Food Business Strategy Pursue selectivity and focus on strong brands and businesses and on businesses targeted for development and seek to develop a next-generation group profit base. 2012 Result 2015 Guideline Net sales ¥103.5 bn. CAGR rate: 5% or higher Operating margin 3.8% 5.5% or higher *Food b
Slide 14: Overseas Business Strategy
Overseas Business Strategy Leverage competitive strengths such as brand power, technological capabilities, and cost competitiveness, and strengthen the growth foundation by utilizing the global network. 2012 Result 2015 Guideline Net sales ¥158.0bn. CAGR rate: 5% or higher Operating margin 4.4% 9.0%
Slide 15: Enhancement of Social Value
Enhancement of Social Value Aspire to be a corporate group trusted by society by leveraging the strengths of the businesses to help solve social issues through business activities. Activity Area Social Issues Priority Activities Desired Corporate Posture Food and •The spread of dietary habits that h
Slide 16: 2012 Summary & 2013 Business Strategy
2012 Summary ＆ 2013 Business Strategy Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 17: Business Results and 2013 Targets
Business Results and 2013 Targets In the first year of Medium-Term Management Plan 2015, the Asahi Group will aim for record-high profits for a 13th consecutive year through steady increases in sales and profits. (billion yen) Operating income Net income Net sales 2013 2012 Inc./Dec. YoY Target Resu
Slide 18: Alcohol Beverages Business Overview and Strategy
Alcohol Beverages Business Overview and Strategy billion yen 2012Result 2013Target (billion yen) Inc./Dec. YoY Result/Target Inc./Dec. YoY Net Sales 944.0 +1.6 +0.2% 98.7% 966.4 +22.4 +2.4% Operating Income 113.3 +12.3 +12.2% 101.9% 113.3 +0.0 +0.0% Overview of 2012 ◆ Achieved sales and profit incre
Slide 19: Beer-type Sales Results and Full Year Target
Beer-type Sales Results and Full Year Target ◆ Sales Target by Brands (million cases) 2012Result 2013Target Inc./Dec. YoY Result/Target Inc./Dec. YoY Super Dry Total 108.80 0.30 0.3% 98.5% 108.80 0.00 0.0% Beer Total 110.96 0.18 0.2% 98.6% 111.00 0.04 0.0% Style Free 11.90 -0.13 -1.1% 102.6% 11.40 -
Slide 20: Other than Beer-type Overview and Strategy
Other than Beer-type Overview and Strategy ◆ Sales and Operating Margin by Category （billion yen） 200 OP margin 10% 10% 6% 7% 6% 5% 150 3.2 7.0 29.0 Others 3.9 4.8 21.1 100 52.7 48.3 33.4 50.3 40.3 Shochu 32.7 32.0 RTD 31.4 30.6 31.2 28.2 28.8 50 12.6 14.8 11.5 10.6 11.5 Wine 12.4 27.5 30.4 30.8 29.
Slide 21: Marketing Expenses of Alcoholic Beverages Business
<Reference> Marketing Expenses of Alcoholic Beverages Business Breakdown of advertising and sales promotion expenses over time billion yen 2013 2006 2007 2008 2009 2010 2011 2012 YoY YoY Target Sales promotion expenses 80.8 77.9 64.9 64.1 66.5 62.5 59.9 -2.6 65.3 5.4 Advertising expenses 32.7 34.9 3
Slide 22: Soft Drinks Business Overview and Strategy
Soft Drinks Business Overview and Strategy billion yen 2012 Result 2013 Target Inc./Dec. YoY Result/Target Inc./Dec. YoY Asahi Soft Drinks 333.6 22.7 7.3% 101.1% 344.0 10.4 3.1% Calpis 26.5 26.5 - - 120.0 93.5 352.9% LB 20.4 -0.8 -3.9% 92.9% 21.5 1.1 5.2% Net Sales 375.4 45.6 13.8% - 470.8 95.4 25.4
Slide 23: Asahi Soft Drinks Overview and Strategy
Asahi Soft Drinks Overview and Strategy ◆ Asahi Soft Drinks Sales Volumes (million cases) 2012Result 2013Target Inc./Dec. YoY Result/Target Inc./Dec. YoY Carbonated Drinks Total 48.70 5.32 +12.3% 99.2% 53.40 4.70 +9.7% Coffee Total 40.42 1.84 +4.8% 101.1% 41.30 0.88 +2.2% RTD Tea Total 41.23 5.26 +1
Slide 24: Overview of Calpis and Future Strategy
Overview of Calpis and Future Strategy ◆ Calpis Performance <Sales composition by business> （billion yen） Animal Feed Net sales Operating income Additives Business 123 124 Functional Foods 1% 118 3% 114 114 International 120.0 Dairy Products 6.0 5% Beverage Business 100.0 Professional-Use 5% Product
Slide 25: Food Business Overview and Strategy
Food Business Overview and Strategy billion yen 2012 Result 2013 Target Inc./Dec. YoY Result/Target Inc./Dec. YoY Asahi Food and Healthcare 51.3 2.3 +4.8% 98.6% 54.0 2.7 +5.4% Wakodo 36.4 -0.7 -1.9% 95.7% 38.0 1.6 +4.4% Amano Jitsugyo 19.7 1.9 +10.9% 99.7% 21.3 1.6 +8.0% Net Sales 103.5 3.4 +3.4% 97
Slide 26: Overseas Business Overview and Strategy
Overseas Business Overview and Strategy billion yen 2012 Result 2013 Target Inc./Dec. YoY Result/Target Inc./Dec. YoY Oceania Business 129.7 48.8 +60.3% 99.8% 145.0 15.3 +11.8% China Business 11.1 -0.6 -4.8% 93.9% 12.0 0.9 +8.3% Permanis 15.5 15.5 - 95.7% 18.8 3.2 +20.8% Net Sales 158.0 63.7 +67.6%
Slide 27: Oceania Business Overview and Strategy (Soft Drinks and Synergy)
Oceania Business Overview and Strategy (Soft Drinks and Synergy) ◆Maximization of Synergies through the Integration of Five Companies in Oceania Medium-Term Management Plan 2015 (billion yen) 2012 Result Total 2013 2014 2015 Integration Synergies 1.2 2.0 or more 2.0 or more 2.0 or more 6.0 or more ・
Slide 28: Oceania Business Overview and Strategy (Alcohol Beverage)
Oceania Business Overview and Strategy (Alcohol Beverage) ◆Australia Alcohol Beverage Business <Sales Composition by Category> *Parentheses indicate 2012 first half comparison. 2012 Overview ・Sales and profit targets not achieved due to sales volume decline, Australia primarily driven by a slump in
Slide 29: Southeast Asia Business Overview and Strategy
Southeast Asia Business Overview and Strategy ◆ Permanis (Malaysian Soft Drinks Business) 2012 Overview Volume Share in the Soft Drinks Market (2011) ・Results were slightly short of sales and profit targets as a result of greater than expected softening of the overall market growth rate due to inten
Slide 30: Overview of Results of Chinese Equity Method Affiliates
Overview of Results of Chinese Equity Method Affiliates ◆ Overview of Tsingtao Beer Business Results 2012 Results and Activities Period million yuan 2011 3Q 2011 4Q 2012 1Q 2012 2Q 2012 3Q (百万中国元 Result Y oY Result Y oY Result Y oY Result Y oY Result Y oY Net sales 7,123 +11.0% 3,985 +12.2% 5,600 +6
Slide 31: Overseas Business
Overseas Business Investment in alcoholic manufacturer China Investment in soft drinks manufacturer Production base Ting Hsin Holding 6.5% Baltika Breweries % Investment ratio (subsidiaries) （Russia） % Investment ratio (equity method affiliates) Tingyi-Asahi Beverages Holding 30.4% Shepherd Neame （U
Slide 32: Information in this material is not intended to solicit sale or purchase of shares
Information in this material is not intended to solicit sale or purchase of shares in Asahi Group Holdings. The views, estimates and other information expressed in this document are based on the company's judgment at the time of publication, and no guarantees are provided regarding the accuracy of s