Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Non-Deal Roadshow (June 2009)
12 slides from Kirin's roadshow presentation, June 2009
Slide 1: Kirin 2009: Taking action for qualitative expansion
2009 investor road show presentation Kirin 2009: Taking action for qualitative expansion June 2009 KIRIN HOLDINGS COMPANY, LIMITED 1
Slide 2: Kirin has jumped to a new growth trajectory
Kirin has jumped to a new growth trajectory 2 years Net sales Year: Excl. liquor tax 2006 ¥1,263 billion 2008 ¥1,922 billion +52% • Pursuing major growth model under KV2015 and on track to meet 2015 targets • Japan’s most internationalized comprehensive beverages company • Focusing development on As
Slide 3: Major growth initiatives have continued
Major growth initiatives have continued 2009 * 100% Lion Nathan * 48% San Miguel Brewery 2008 * 100% Dairy Farmers 2007 * 100% National Foods * Kyowa Hakko * Mercian Corporation International sales on track to reach 30% by 2015 Further reference: http://www.kirinholdings.co.jp/english/news (News rel
Slide 4: Balanced business segments: it's a bigger pie
Balanced business segments: it’s a bigger pie Domestic alcohol remains Kirin’s core business and primary cash generator, but Kirin Group sales and earnings are becoming more balanced and geographically diversified Other Pharma Alcohol Alcohol 6% • Kirin’s core business 4% 10% 11% • Very strong domes
Slide 5: Entering a new developmental stage
Entering a new developmental stage Major investments have lifted Group sales growth ahead of schedule. Now focusing strongly on increasing profitability through group infrastructure, synergies, efficiency, human resources and profit-oriented strategic investment Growth stages of Kirin Group and beyo
Slide 6: Growing through bank, brands and brains
Growing through bank, brands and brains BANK Kirin has acquired a fundamentally sound, profitable portfolio of businesses with strong cash flows and organic growth potential • Major M&A now largely complete • Further acquisitions considered as appropriate BRANDS and BRAINS Now pursuing organic growt
Slide 7: Addressing key issues
Addressing key issues DOMESTIC ALCOHOL NATIONAL FOODS • Reducing sales and marketing expenses to increase • Business environment improving with stabilizing margins input costs • Renewed Ichiban Shibori and Nodogoshi supported • Focusing on margins strong 1Q—ahead of plan • Already seeing integration
Slide 8: Cross-company synergy project teams
Cross-company synergy project teams Absolute commitment throughout organization for stronger intra-group collaboration • Cross-company teams have begun extensive synergy project covering 8 areas: • Sales and marketing • Manufacturing and distribution • R&D • Procurement • Asset reduction and cash fl
Slide 9: Results and targets: 2007—2009e—2015 targets
Results and targets: 2007—2009e—2015 targets ■ Promising 1Q results: on track to meet 2009 annual forecast ■ Likely to fall short of upwardly revised MTMP targets ■ Fast progress toward sales targets for 2015, with focus now on qualitative expansion Additional investments in SMB and LN are purely
Slide 10: Growth strategy supported by strong cash flows
Growth strategy supported by strong cash flows ■ Target operating CF in 2009 ¥143.0 bn (up ¥11.8 bn from 2008) ■ Investment for qualitative expansion means negative FCF of ¥200.0 bn in 2009 ■ LN and SMB will contribute CF (more than ¥10.0 bn) to Kirin Holdings, increase cash EPS (10% plus) and ultim
Slide 11: Sound financial fundamentals
Sound financial fundamentals ■ Focusing on asset efficiency and B/S management ■ Using strong cash flows (e.g. 100% ownership of LN) and asset sales to repay debt ■ Secure liquidity on hand (issue CP, etc. ) ■ Reduce accounts receivable Liabilities ■ D/E ratio will rise and inventory Assets temporar
Slide 12: Kirin: on track and hungry for further success
Kirin: on track and hungry for further success • Kirin owns the right companies in the right places • Promising start to the year in an adverse environment • Strong commitment to higher profitability • Becoming a truly international group in management approach and business portfolio • On the move a
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