Ajinomoto Co., Inc. · TSE:2802
Ajinomoto — Merger or Acquisition (September 2014)
19 slides from Ajinomoto's merger presentation, Sep 10, 2014
Slide 1: Acquisition of Windsor Quality Holdings
Acquisition of Windsor Quality Holdings the No.1 Manufacturer of Asian/Ethnic Frozen Foods in the U.S. September 10, 2014 Masatoshi Ito President & CEO, Ajinomoto Co., Inc.
Slide 2: Table of Contents
Table of Contents I. Summary II. FY2014-2016 Medium-Term Management Plan III. Current Status of the Frozen Foods Market in the U.S. IV. Overview of the Transaction and Windsor V. Post-Transaction Production Facilities and Distribution Network in the U.S. VI. Ajinomoto Group’s Frozen Foods Business i
Slide 3: I. Summary
I. Summary Acquisition of Windsor Quality Holdings, LP (“Windsor”) No.1 Manufacturer of Asian/Ethnic Frozen Foods in the U.S. for approximately JPY 84Bn ~ Grow the Ajinomoto Group’s Business toward JPY 100Bn in North America ~ Become the Clear No.1 Asian/Ethnic Frozen Foods Manufacturer 3 Copyright
Slide 4: II. FY2014-2016 Medium-Term Management Plan
II. FY2014-2016 Medium-Term Management Plan Achieve “Further Business Structure Reinforcement” and “Accelerated Growth Momentum” to become a “Genuine Global Specialty Company” Pursuit of Specialty • Become a food company group with specialties driven by cutting-edge bioscience and fine chemical tech
Slide 5: II. FY2014-2016 Medium-Term Management Plan
II. FY2014-2016 Medium-Term Management Plan Promote global advancement in overseas foods business by leveraging external capabilities such as M&A, etc. Especially in North America, jointly develop frozen noodles with Toyo Suisan in addition to expanding the product lineup (e.g. Gyoza/Noodle/Rice) Id
Slide 6: III. Current Status of the Frozen Foods Market
III. Current Status of the Frozen Foods Market in the U.S. North American frozen foods market is an over USD 40Bn sized gigantic market that is expected to grow steadily at 2% annually. In particular, the Asian/Ethnic frozen foods category is becoming a growing market backed by the increased demand
Slide 7: IV. Overview of the Transaction and Windsor
IV. Overview of the Transaction and Windsor Overview of the Transaction Description: 100% Acquisition of Windsor Transaction Value: USD 800 million (approx. JPY 84Bn) Closing: Early November 2014 (expected) Overview of Windsor (Subject of Acquisition) Headquarters: Houston, Texas, U.S. Est
Slide 8: Windsor's Key Brands
IV. Overview of the Transaction and Windsor Windsor’s Key Brands Windsor owns Tai Pei, Ling Ling and other powerful brands, holding the No.1 share for Asian products. Potsticker Fried Rice Spring Roll Potsticker Taquitos Pasta Appetizer 8 Copyright © 2014 Ajinomoto Co., Inc. All rights reserved.
Slide 9: Windsor's Key Sales Channels
IV. Overview of the Transaction and Windsor Windsor’s Key Sales Channels Windsor has established a strong sales network in both retail (approx. 80,000 stores) and restaurant chain (approx. 120,000 restaurants) channels in the U.S. Windsor’s products are sold in many retailers and restaurants across
Slide 10: V. Post-Transaction Production Facilities and Distribution Network
V. Post-Transaction Production Facilities and Distribution Network in the U.S. Windsor possesses production facilities and distribution centers widely across the U.S., which sustain a production capacity for further sales growth. Portland (AFU) Windsor and the Ajinomoto Group Footprint Chicago Haywa
Slide 11: VI. Ajinomoto Group's Frozen Foods Business in North America
VI. Ajinomoto Group’s Frozen Foods Business in North America Since full-scale entry in 2000, the Ajinomoto Group’s Frozen Foods Business in North America has developed health and high-quality Asian/Ethnic food products with sales growing to JPY 13.5Bn Key Products Production Facility Net Sales Portl
Slide 12: VII. Strategic Rationale
VII. Strategic Rationale of the Transaction Through the transaction, the Ajinomoto Group will establish the clear No.1 position in the Asian/Ethnic frozen foods category in the U.S. Accelerate further sales growth by leveraging Windsor’s sales channels across the U.S. for the Ajinomoto Group’s hig
Slide 13: Enhancement of Value Chain through Integration
VII. Strategic Rationale of the Transaction Enhancement of Value Chain through Integration Establish a strong value chain through the combination of the Ajinomoto Group’s advanced product development capabilities/production technology and Windsor’s brand power and sales force Product Development Pro
Slide 14: Market Share of Asian Frozen Foods in North America
VII. Strategic Rationale of the Transaction Market Share of Asian Frozen Foods in North America Through the transaction, the Ajinomoto Group will establish the clear No.1 position in the Asian/Ethnic frozen food category in North America FY2020 Market Share of Asian/Ethnic Frozen Foods in North Amer
Slide 15: VIII. Post-Transaction Management
VIII. Post-Transaction Management Current Windsor management team will continue to lead the business Greg Geib President & CEO 19 years of experience in food industry Prior Experience: GE, Parker PGI, etc. Bachelor’s degree from University of Pennsylvania and MBA from Kellogg Graduate School o
Slide 16: VIII. Post-Transaction Business Objective
VIII. Post-Transaction Business Objective Achieve JPY 100Bn Sales in the North American Frozen Foods Business by FY2020 and Establish the Ajinomoto Group as the Clear No.1 Manufacturer in the Asian/Ethnic Frozen Foods Category 16 Copyright © 2014 Ajinomoto Co., Inc. All rights reserved.
Slide 17: Reference: Post-Transaction Frozen Food Business Profile
Reference: Post-Transaction the Ajinomoto Group’s Frozen Food Business Profile The overseas sales ratio of the Ajinomoto Group’s Frozen Foods Business will rise to 47% after the transaction FY2013 (Actual, before the transaction) FY2016(Planned, after the transaction) Overseas 13% Overseas 47% Domes
Slide 18: Reference: Japanese Food Becoming More Popular Around the World
Reference: Japanese Food Becoming More Popular Around the World Articles about Japanese Food Popularity Examples of Books and Restaurants Japanese Cuisine Goes Global (Dec. 9, 2013) Unesco just picked Japanese cuisine as a world cultural heritage, recognition that the Japanese government had lobbied
Slide 19: Eat Well, Live Well. AJINOMOTO.
Eat Well, Live Well. AJINOMOTO.