Sapporo Holdings Limited · TSE:2501
Sapporo — Q3 2012 Earnings Presentation
25 slides from Sapporo's earnings presentation, Nov 7, 2012
Slide 1: Sapporo Group Business Results Presentation for the Nine Months ended September 30, 2012
2012 Sapporo Group Business Results Presentation for the Nine Months ended September 30, 2012 November 7, 2012 URL http://www.sapporoholdings.jp/english/ Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 1/25
Slide 2: Contents
Contents 1. Progress of Implementation of 2012 Basic Strategies 2. Overview of Results for the First Nine Months of 2012 3. 2012 Full-Year Earnings Forecasts Reference: Supplementary Information to Results for the First Nine Months of 2012 Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 2/
Slide 3: 1. Progress of Implementation of 2012 Basic Strategies
1. Progress of Implementation of 2012 Basic Strategies Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 3/25
Slide 4: Progress of Implementation of 2012 Basic Strategies
Progress of Implementation of 2012 Basic Strategies We promoted three basic strategies for achieving dramatic growth Accept challenges leading to Create new growth Steadfastly implement growth in all businesses opportunities growth measures We will leverage the strengths of our To realize the fruits
Slide 5: Progress of Implementation of 2012 Basic Strategies
Progress of Implementation of 2012 Basic Strategies Steadfastly implement growth measures ¾ Steps for boosting the value of Yebisu Garden Place •Increased the stake in Yebisu Garden Place to 100% in March 2012; started implementing measures to boost its value towards its 20th anniversary in 2014. •
Slide 6: Progress of Implementation of 2012 Basic Strategies
Progress of Implementation of 2012 Basic Strategies Steadfastly implement growth measures ¾ Progress in the business in Vietnam, where we made a full-scale entry •We entered the Vietnamese market at the end of February 2012 and launched full-scale marketing from April. Sales volume and exports to su
Slide 7: Progress of Implementation of 2012 Strategic Investments
Progress of Implementation of 2012 Strategic Investments Implementation Status of Strategic Investments (incl. ordinary capex) Credit Ratings <Acquisition of stake in Silver Springs Citrus> <Announcement of the acquisition of 15% of trust beneficiary ¾ Acquired 51% of outstanding shares in Silver Sp
Slide 8: 2. Overview of Results for the First Nine Months of 2012
2. Overview of Results for the First Nine Months of 2012 Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 8/25
Slide 9: Overview of Results for the First Nine Months of 2012: Special Factors
Overview of Results for the First Nine Months of 2012: Special Factors Breakdown of special factors that do not allow meaningful comparisons between net sales and operating income for the first nine months of 2012 and the same period a year earlier See the Supplementary Information to our Earnings R
Slide 10: Overview of Results for the First Nine Months of 2012
Overview of Results for the First Nine Months of 2012 YoY changes 2011 3Q results 2012 3Q results (amount, %) ¾ Net sales: up YoY (billions of yen) Japanese Alcoholic Sales increased on recovery of Japanese Beverages 191.5 195.5 4.0 2.1% Alcoholic Beverages and Restaurants, International 19.4 26.3 6
Slide 11: 3. 2012 Full-year Forecast
3. 2012 Full-year Forecast * 2012 full-year earnings forecasts announced on August 7 remain unchanged Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 11/25
Slide 12: 2012 Full-year Forecasts
2012 Full-year Forecasts YoY change (billions of yen) 2011 Results 2012 Targets (amount,%) Japanese Alcoholic Beverages 268.1 277.5 9.3 3.5% Full-year forecast is International 25.8 37.3 11.4 44.1% Food & Soft Drinks 108.0 128.1 20.0 18.5% unchanged Sapporo Beverage POKKA Group 32.2 30.1 (2.1) (6.6)
Slide 13: Reference: Supplementary Information to Results for the First Nine Months of 2012
Reference: Supplementary Information to Results for the First Nine Months of 2012 *For information on each business’s profitability, please also see the supplementary information to our earnings report Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 13/25
Slide 14: Japanese Alcoholic Beverages (1)
Japanese Alcoholic Beverages (1) (billions of yen) Year-over-year changes Results highlights *Incl. liquor taxes 2011 3Q 2012 3Q Amount % Net sales increased reflecting the July launch of Hokkaido PREMIUM in the new-genre beer product categoryand the rebound from the Net sales* 191.5 195.5 4.0 2.1%
Slide 15: Japanese Alcoholic Beverages (2)
Japanese Alcoholic Beverages (2) Key points in business plan: implementation status 2. Laying the groundwork for growth in expanding areas 3. Expand sales of wine, western spirits and shochu RTD-related actions <Sapporo’s first year of promoting Ready Wine To Drink products: Triple the sales> ¾ Sale
Slide 16: International Business (1)
International Business (1) (billions of yen) Results highlights Year-over-year changes While yen appreciation erased gains primarily in North America, sales increased 35.5% YoY on the back of gains in 2011 3Q 2012 3Q Amount % local currency terms and the addition of Silver Springs 59.9 Citrus’s resu
Slide 17: International Business (2)
International Business (2) Developments in South Korea Key points in business plan: implementation status ¾ We strengthened Sapporo brand value and sales structure in South Korea by acquiring 15% sake in M’s Beverage Co., Ltd., a 2. Expansion in Asian market (incl. Oceania) wholly owned liquor sales
Slide 18: Food & Soft Drinks – Sapporo Beverage
Food & Soft Drinks – Sapporo Beverage Results highlights (billions of yen) Sales volume declined to 92% of the previous year against a general Year-over-year changes demand rise to103%, partly due to the reversal of the surge in demand for Japanese drinking water following the disaster last year.*Af
Slide 19: Food & Soft Drinks – POKKA Group (1)
Food & Soft Drinks – POKKA Group (1) (billions of yen) Year-over-year changes Results highlights Apr-Sep Jan-Sep Amount % New consolidation from April 2011 makes YoY comparisons meaningless, 2011* 2012 but comparisons based on reference figures below show that despite growth in Domestic Restaurants,
Slide 20: Food & Soft Drinks – POKKA Group (2)
Food & Soft Drinks – POKKA Group (2) Key points in business plan: implementation status Beverage & Food Business (Japan): POKKA Corp. and six group vending machine operators 1. Beverages Business ¾ Concentrating investments in core brands Kireto Lemon Re-launch of spring , summer products, airing of
Slide 21: Food & Soft Drinks – POKKA Group (3)
Food & Soft Drinks – POKKA Group (3) Key points in business plan: implementation status Beverage & Food Business (Overseas): POKKA Singapore 1. Expand into Singapore’s neighboring countries Restaurants Business (Domestic): POKKA CREATE Co., Ltd. ¾ Planning and implementing measures to activate marke
Slide 22: Restaurants
Restaurants Results highlights (billions of yen) Year-over-year increase in sales in the Restaurant Business, which was directly affected by the Great East Japan Year-over-year changes Earthquake last year. Sales for the Jan-Sep period increased 4.0% YoY at existing 2011 3Q 2012 3Q Amount % stores.
Slide 23: Real Estate (1)
Real Estate (1) (billions of yen) Results highlights Year-over-year changes Despite decline in real estate revenues, sales and income 2011 3Q 2012 3Q Amount % rose from March onwards as we acquired 15% trust beneficiary rights in Yebisu Garden Place. Maintaining Net sales 16.6 17.3 0.7 4.4% stable r
Slide 24: Real Estate (2)
Real Estate (2) Overview of Real Estate Business ¾ Majority of the business’s operating income is from real estate leasing – Property portfolio largely comprises properties in Tokyo 5 central wards; see the previous slide – Unrealized gains on properties for lease as of the end of December 2011 was
Slide 25: 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 mater