Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Investor Presentation (June 2010)
27 slides from Kirin's investor presentation, Jun 7, 2010
Slide 1: Growth strategy of Lion Nathan National Foods
Growth strategy of Lion Nathan National Foods 7 June 2010 Lion Nathan National Foods Pty Ltd
Slide 2: Contents
Contents Overview of Lion Nathan National Foods LNNF Marketing Strategy Integration Progress Appendix 1
Slide 3: Launch of new holding company “LNNF”
Launch of new holding company “LNNF” Progressing the integrated beverages group strategy in Oceania. Through 100% ownership of LN, Kirin established the region’s largest food and beverages business company, LNNF on 21 October, 2009. National Foods/Dairy Farmers Lion Nathan Australia’s #1 dairy &
Slide 4: Strong brand portfolio in Alcohol beverages
Strong brand portfolio in Alcohol beverages LNNF is a leading alcohol beverages company in Australasia Australia NZ Wine RTD 3
Slide 5: Strong brand portfolio in Dairy and Juice
Strong brand portfolio in Dairy and Juice LNNF is a leading Dairy and Juice company in Australia Milk (White and Flavoured) Dairy (Yoghurt and dairy deserts) Juice Cheese 4
Slide 6: LNNF Position in Primary Categories
LNNF Position in Primary Categories LNNF has strong market positions in a range of key beverage categories Market share Beer – Australia1 Beer - New Zealand1 51% 43% Milk – Australia2 Chilled Juice – Australia3 54% 63% Source: 1 AC Nielsen MAT September 2009 2 AC Nielsen Only white milk (exclude fla
Slide 7: Alcohol Beverage Production Facilities
Alcohol Beverage Production Facilities LNNF has strong market positions in each region Argyle Argyle Oregon, Oregon,USA USA Castlemaine CastlemainePerkins, Perkins, Brisbane Brisbane Inner InnerCircle CircleRum Rum Distillery, Distillery,Beenleigh Beenleigh Contact ContactBottling Bottling Co., Co.,
Slide 8: Dairy and Juice Production Facilities
Dairy and Juice Production Facilities LNNF has manufacturing footprints across all regions of Australia Malanda (Milk) Booval (Milk) Lytton (Juice) Vitasoy JV (Soy) Crestmead (Milk) Leeton (Juice) Hexham (Fresh Milk, condensed milk and Riverland (Juice) desserts, cottage cheese and milk powder) Murr
Slide 9: EBIT Performance in Oceania
EBIT Performance in Oceania EBIT in Oceania has grown steadily 800 EBIT A$m 700 600 Kirin acquired 500 its stake in LN 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 F2010 Acquisition Acquisition Sale of Pepsi licence (1999) of Petaluma of Wither Fine Wine D
Slide 10: Contents
Contents Overview of LNNF LNNF Marketing Strategy Integration Progress Appendix 9
Slide 11: LNNF Mid-Term Business Strategy (MTBP)
LNNF Mid-Term Business Strategy (MTBP) LNNF is one of the Key initiatives to achieve KH MTBP Kirin Holdings (KH) is pursuing “qualitative expansion”. LNNF is delivering Approx.25% of KH 2010-2012 MTBP’s operating income target Area Main operating companies Operating income Contents increase (bn
Slide 12: Alcohol beverage marketing strategy
Alcohol beverage marketing strategy The beer category size remains stable 2,500 120.0 Australian Beer Consumption 2,300 (1993-2006) 98.3 95.7 94.8 100.0 2,100 92.8 92.2 91.8 91.5 91.1 88.5 86.6 85.4 84.0 Per capita 82.0 1,900 81.0 80.1 consumption 1,746 80.0 1,738 1,712 1,717 1,711 1,724 1,735 1,714
Slide 13: Alcohol beverage marketing strategy – Innovation
Alcohol beverage marketing strategy – Innovation The profile of the beer market has changed dramatically in recent years SEGMENT DEFINITIONS: Low Carb significant driver of category growth Full-strength ≥4% Mid-strength ≥3% but <4% Premium and Mid-Strength share gains Light <3% Premium - Based on
Slide 14: Innovation – Low Carb
Innovation – Low Carb Premium Low Carb beer, Hahn Launched Apr, 2009 Super Dry grew by 40.9% Low Carb + Mid-Strength Leverage trademark brand reputation Launched Sep, 2009 Low Carb + Clear bottled Nation’s second largest beer, XXXX Gold grew by 6.2% 13
Slide 15: Innovation – Creativity
Innovation – Creativity Launched Oct, 2009 Launched Aug, 2009 Leverage Boag’s premium and pure image The biggest cider in Australia?? Develop new consumers Develop Steinlager’s image Launched Preece ‘Lighter in Alcohol’. New approach: multi media campaign, Low alcohol wines includes TV, music video,
Slide 16: Invest on our site
Invest on our site Investment has been targeted to improve infrastructure resulting in improved safety, flexibility, and productivity. The The Pride Pride (Auckland) (Auckland) New New Boags Boags Brewhouse Brewhouse New New Sydney Sydney Bevchain Bevchain warehouse warehouse The Boag’s trademark gr
Slide 17: Dairy and Juice Marketing Strategy
Dairy and Juice Marketing Strategy Reduced/Low Fat, Flavoured, and UHT milk are increasing Billion litres Australian Milk Consumption (1994-2009) *include Flavoured Milk UHT 2.5 Flavoured Reduced&Low Fat Regular Whole 2 1.5 1 0.5 0 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 0304- 04-05
Slide 18: Innovation – Creativity
Innovation – Creativity “New Milk” Creates new category for consumers wanting the taste and goodness of full cream milk but only half the fat*. *Goodness of calcium and protein found in full cream milk Educational signage at POP “Yoplait formé” brand re-launched and, launched “formé Satisfy” “formé
Slide 19: Contents
Contents Overview of LNNF LNNF Marketing strategy Integration Progress Appendix 18
Slide 20: Integration Progress
Integration Progress Focus on the Integration of NFL-DF, and NFL-LN Invest to create strong business platform and strong brands Integration Integration Progress: Progress: NFL-DF NFL-DF Manufacturing Platform Optimization Site Category State Term Notes Lidcombe Mik NSW - Requirement under DF acqu
Slide 21: Integration Progress
Integration Progress Integration Integration Progress: Progress: NFL-LN NFL-LN Best practice alignment Completed to align the corporate function and share best practice P&C Aligned people processes and systems – creates consistent approach to talent management and succession planning Held an a
Slide 22: Contents
Contents Overview of LNNF LNNF Marketing strategy Integration Progress Appendix 21
Slide 23: Appendix – Oceania Alcohol Market
Appendix – Oceania Alcohol Market Australian Alcohol Market NZ Alcohol Market (2009) (2009) Total combined Spirits Cider Spirits Cider (2.5%) (1.0%) market value: (1.2%) (0.5%) US$10-15bn RTD*s RTD*s (6.4%) (11.1%) Wine Wine (15.2%) (28.3%) Beer Beer (70.2%) (63.6%) Beer represents the majority of a
Slide 24: Appendix – Australian Beer Market
Appendix – Australian Beer Market 1 BY PACK TYPE | TOTAL BEER | TOTAL 5 STATE NLI(& DARWIN) - MAT TO 30/04/2009 Source : Nielsen Australia ScanTrack Liquor Volume Share and Growth by Pack Format (2008-09) (330, 345 (375ml (250ml (750ml (Mostly or 375ml aluminium bottle) bottle) 50L) bottle) can) Mos
Slide 25: Appendix – Australian Beer Market
Appendix – Australian Beer Market 2 -Almost half of total beer volume is sold for A$40-$44.99 per case in Australia -The strongest growth is in step-up and premium brands (A$45-$49.99) -In the volume and growth segments, LNNF has strong brands Australian Total Beer Market Share by Price Segment Hahn
Slide 26: Appendix – Australian Dairy Market & Juice Market
Appendix – Australian Dairy Market & Juice Market Australian Industry Product Mix 2008/09 Freshlogic estimated share of retail spending Other on food March Qtr 2010 SMP/Butter Milk 6% 24% Food service 25% 27% WMP Cheese Specialost 12% Supermarket 33% retail 61% 12% Source: Dairy Australia Dairy 2010
Slide 27: BWSR Pe
BWSR Pe KIRIN
Kirin Holdings Company — Investor Presentation (June 2010) on 6ix