Asahi Group Holdings Ltd · TSE:2502
Asahi — Asahi Breweries — FY2004 Earnings Presentation
23 slides from Asahi's earnings presentation, Feb 16, 2005
Slide 1: 2004 Results and Business Strategy
2004 Results and Business Strategy February 16, 2005 Asahi Breweries, Ltd. URL http://www.asahibeer.co.jp
Slide 2: 2004 Group Business Overview
2004 Group Business Overview
Slide 3: 2004 Results Overview (consolidated)
2004 Results Overview (consolidated) 2004 Results (consolidated) (Billions of yen) (Billions of yen) 1500 2004 (JAN - DEC) Net sales 2003 YoY (%) Asahi Breweries 1,116.4 1,107.0 9.4 (0.8%) 1400 Asahi Soft Drinks 204.0 189.4 14.6 (7.7%) Asahi Food & Healthcare 22.3 22.0 0.3 (1.5%) 1300 Others 101.5 8
Slide 4: 2004 Results Overview (non-consolidated)
2004 Results Overview (non-consolidated) 2004 Results (non-consolidated) (Billions of yen) (Billions of yen) 1200 Net sales 2004 (JAN - DEC) 2003 YoY (%) 1100 Beer 786.8 784.4 2.4 (0.3%) 1000 Happoshu 200.6 195.6 5.0 (2.6%) 100 Operating Other Alcohol 129.0 127.0 2.0 (1.6%) income 90 Net sales 1,116
Slide 5: Progress of the Second Group Medium-Term Business Plan
Progress of the Second Group Medium-Term Business Plan The Second Group Medium-Term Business Plan during 2004 (Billions of yen) (Billions of yen) 1800 2004 2006 Target 1600 Sales Alcoholic drinks 1,116.4 1,200.0 Soft drinks 204.0 300.0 1400 Food and Health 22.3 50.0 Target Overseas 31.6 50.0 1200 Ac
Slide 6: Group Business Strategies Overview
Group Business Strategies Overview 2004 Business strategy: Establish a new earnings structure for the first year of the new business plan Secure Secure position position in in the the beer/happoshu beer/happoshu business business Sales Sales of of Super Super Dry Dry up up for for the the first firs
Slide 7: Progress of Cash Flow and Financial Strategies
Progress of Cash Flow and Financial Strategies Medium-term cash flow strategies Strategic Strategic investments investments for for medium- medium- toto long-term long-term Group Group growth growth Business Create Create new new growth growth structures structures through through reform reform of o
Slide 8: 2005 Group Business Strategy
2005 Group Business Strategy
Slide 9: 2005 Full Year Forecasts (consolidated)
2005 Full Year Forecasts (consolidated) 2005 Full-year forecasts (consolidated) (Billions of yen) (Billions of yen) 1600 Net sales 2005 Forecast (JAN - DEC) 2004 YoY (%) 1500 Asahi Breweries 1,164.0 1,116.4 47.6 (4.3%) Asahi Soft Drinks 209.0 204.0 5.0 (2.4%) 1400 Asahi Food & Healthcare 26.5 22.3 4
Slide 10: 2005 Full Year Forecasts (non-consolidated)
2005 Full Year Forecasts (non-consolidated) 2005 Full-year forecasts (non-consolidated) (Billions of yen) (Billions of yen) 1200 Net sales 2005 Forecasts (JAN-DEC) 2004 YoY (%) 1100 Beer 784.2 786.8 (2.6) (-0.3%) Happoshu 141.2 200.6 (59.4) (-29.6%) 1000 Beer-like Alcohol Drinks 68.2 100 Operating i
Slide 11: 2005 Group Business Strategies (1)
2005 Group Business Strategies (1) The “three growth strategies” A year of rapid growth to ensure we meet targets for the Second Medium-Term Management Plan (1) New growth in the domestic alcohol business (2) New growth in Group businesses (3) New growth internationally (1) New growth in the domesti
Slide 12: 2005 Group Business Strategies (2)
2005 Group Business Strategies (2) (2) New growth in Group businesses Growth Growth strategies strategies and and restructuring restructuring for for Asahi Asahi Soft Soft Drinks Drinks Strengthen Strengthen the three core brands; develop new products in the three core brands; develop new products i
Slide 13: 2005 Cash Flow Strategies
2005 Cash Flow Strategies Effective use of cash flows for sustained growth in sales and earnings, and increases in corporate value (1) Strategic business investments, including M&A Establish Establish aa Business Business Development Development Department Department directly directly run run by by
Slide 14: 2005 Domestic Alcohol Business Strategies by Category
2005 Domestic Alcohol Business Strategies by Category
Slide 15: Beer/Happoshu: 2004 Overview
Beer/Happoshu: 2004 Overview Beer/Happoshu Taxable Volume (2004) (Millions of cases) Industry Overall (Jan - Dec 2004) Asahi Breweries (Jan - Dec 2004) Cases YoY (%) Breakdown (% change) Cases YoY (%) Share (% change) Beer 306.6 -5.1 (-1.6%) 62.3% (+1.6%) Beer 150.6 0.4 (+0.3%) 49.1% (+0.9%) Happosh
Slide 16: Beer/Happoshu: 2005 Sales Plan
Beer/Happoshu: 2005 Sales Plan 2005 Market forecast Beer: 4% decline Happoshu: 24% decline Market Total: 2% decline overall Beer-like alcohol drinks: 184% increase Beer/Happoshu sales plan (Millions of cases) 2005 Targets 2004 YoY Super Dry 148.0 147.5 +0.3% Others 2.0 2.5 -20.0% Beer 150.0 150.0 +0
Slide 17: Beer/Happoshu: 2005 Initiatives
Beer/Happoshu: 2005 Initiatives Beer Move forward with the “Super Dry Project” to accelerate recovery in beer sales “Freshness” Improve freshness at stores by shortening number of days from brewery shipments Enhance freshness management activity at stores; Launch special “freshness pack” products; C
Slide 18: Launch of Beer-like Alcohol Drink Asahi Shinnama
Launch of Beer-like Alcohol Drink Asahi Shinnama Beer-like Alcohol Drinks (no-malt beer) Launch of Asahi Shinnama (April 20) “Market-creating” product, with a “clean and smooth” concept Soybean peptide and Super Dry yeast produce a “smooth drinking” product Designed to respond to customer needs and
Slide 19: Other Alcohol Business: 2004 Overview
Other Alcohol Business: 2004 Overview Alcohol business earnings diversification through sales expansion and streamlining in the Other Alcohol Business Strengthen existing core brands; create new value and demand through concentration of Group capabilities Core brands such as the low-alcohol drink Co
Slide 20: Shochu/Low-Alcohol Drinks: 2005 Initiatives
Shochu/Low-Alcohol Drinks: 2005 Initiatives Strengthen existing core brands and create new value and demand through concentration of Group capabilities and external expertise Other alcohol business sales target: ¥169.0bn (up 33% YoY) “aggressive targets” Shochu Sales target: ¥68.0bn (up 31.3% YoY) N
Slide 21: Spirits/Wine: 2005 Initiatives
Sprits/Wine: 2005 Initiatives Spirits Sales target: ¥33.5bn (up 13.5% YoY) Conduct marketing campaigns to raise interest in malt whiskeys Coordinate with international strategies of Maxxium Worldwide Wine Sales target: ¥16.0bn (up 11.1% YoY) Establish a Wine Business Division to enhance specializati
Slide 22: Advertising and Promotional Expenses Plan
Advertising and Promotional Expenses Plan Advertising and Promotional Expenses Plan (Billions of yen) 2001 2002 2003 2004 2005 Plan YoY YoY Beer 75.4 66.0 60.3 58.0 -2.3 53.3 -4.7 Happoshu 15.8 19.6 20.5 20.4 -0.1 13.9 -6.5 Beer-like alcohol drinks 6.8 6.8 Beer/Happoshu/Beer-like total 91.2 85.6 80.
Slide 23: Information in this material is not intended to solicit sales or purchases
Information in this material is not intended to solicit sales or purchases of Asahi Breweries stock shares. The comments and estimates in this document are based on the company’s judgment at the time of publication and their accuracy is not guaranteed. They are subject to change without notice in th