Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Investor Presentation (May 2010)
23 slides from Kirin's investor presentation, May 2010
Slide 1: Kirin Group Business Approach for 2010 and after
Kirin Group Business Approach for 2010 and after May, 2010 Kirin Holdings Company, Limited
Slide 2: Contents
Contents ■ Management summary ■ Kirin Group Vision 2015 ■ Kirin made a strong start in Stage I (2007 MTBP) ■ 2010 MTBP—from quantity to quality ■ 2010 Kirin Group Basic Policy ■ 2010 Kirin Group quantitative targets ■ Breakdown of target increase in operating income ■ 2010 key strategies and action
Slide 3: Management summary
Management summary First year of 2010 MTBP— targeting implementation and qualitative expansion ◆ Achieved strong start in Stage I (2007 MTBP) toward realizing the aims of Kirin Group Vision 2015 (KV2015) ◆ Achieved record-high ordinary income in 2009 results—Kirin Brewery enjoying extremely high cus
Slide 4: Kirin Group Vision 2015 (KV2015)
Kirin Group Vision 2015 (KV2015) (announced May 2006) Continuing Kirin’s leap in growth outlined in KV2015 long-term vision Moving to Stage II with the 2010—2012 Medium-term Business Plan KV2015 Group Vision Nurture close links with customers through products that provide the enjoyment of food and
Slide 5: Kirin made a strong start in Stage I (2007 MTBP)
Kirin made a strong start in Stage I (2007 MTBP) ◆ Leap in growth ◆ Stronger core business ◆ Higher overseas sales ratio 2009 sales: ¥2,278.4 bn Improved earnings in domestic 2009 overseas sales composition: 27% alcohol beverages business Up 9 percentage points from 2006 Up 36.7% on 2006 Kirin Brewe
Slide 6: 2010 MTBP — from quantity to quality
2010 MTBP—from quantity to quality Address key issues through implementation-focused plan to further advance shift from quantity to quality ⇒achieve long-term management vision (KV2015) Stage Stage 3: 3: 2013 2013 MTBP MTBP (2013-2015) (2013-2015) Stage Stage 2: 2: 2010 2010 MTBP MTBP (2010-2012) (2
Slide 7: 2010 Kirin Group Basic Policy
2010 Kirin Group Basic Policy Group-wide effort to make new value propositions in line with customer needs Pursue profitability and efficiency: implement lean management, eliminating strain, waste and irregularity 1．Increase Group enterprise value by realizing growth and synergies at operating c
Slide 8: 2010 Kirin Group quantitative targets
2010 Kirin Group quantitative targets Target substantial increase in pre-goodwill operating income, EBITDA and other cash-based earnings indices Improve profitability (reduce costs) across Group and enhance resilience to changes in business environment （Unit: billions of yen） Targets 2009 actual
Slide 9: Breakdown of target increase in operating income
Breakdown of target increase in operating income Centering activities on CCT to reform earning structure (lower costs) and increase resilience to changes in business environment Targeting higher earnings in Australia (prior to amortization of LN 100% goodwill) with continued strong performance a
Slide 10: 2010 key strategies and action themes
2010 key strategies and action themes Increase earnings by offering customers added value and lifting profitability without relying on top-line growth Pursue integrated beverages group strategy (Kirin Brewery, Kirin Beverage, Mercian) 1. Build strong brands with customer-focused approach 2. Pursue v
Slide 11: 2010 synergy targets
2010 synergy targets Stepping up function-specific synergy initiatives by cross company teams set up horizontally across Group Main cost synergy initiatives targeted by CCT （Unit: billion yen) Contribution over Contribution CCT Details period of MTBP during 2010 Restructure KB plants; reform distr
Slide 12: 2010 financial strategy: Increase cash flow
2010 financial strategy: Increase cash flow Significantly increase cashflow by realizing Group synergies, adopting lean management, improving investment efficiency and reducing assets Increased Shareholder returns Dividends: operating CF Consolidated payout ratios over 30% Aim to increase dividends
Slide 13: Engaging with society through CSR
Engaging with society through CSR Kirin is helping realize a sustainable society with CSR through business and CSR as a corporate citizen. Becoming a low-carbon corporate group Preventing driving under the influence Kirin aims to become a low-carbon corporate group, based on a CSR With the 0.00% alc
Slide 14: Strategy for Further Growth (1)
Strategy for Further Growth (1) Entire Group is striving to attain the beginning of year goals as planned 1. Realize Group synergies CCT (Cross Company Team): ＊KBE=Kirin Business Expert ■Manufacturing, ・Strengthening of group quality and environmental management functions distribution → Establishmen
Slide 15: Strategy for Further Growth (2)
Strategy for Further Growth (2) Options for quantum leap in growth after termination of merger negotiations with Suntory Investment Strategy ◆Actively direct cash towards attractive projects that are WORTH INVESTMENT, though we have not set a quota for strategic investment during this MTBP. ◆Worth I
Slide 16: Appendix
Appendix
Slide 17: Lion Nathan National Foods (LNNF)
Lion Nathan National Foods (LNNF) Ⅱ． Profit 2009 results and 2010 forecasts by segment*3 Ⅰ． 2009 results and 2010 forecasts (Comparison with last year) ￥ billion 2009 2010 ￥ billion 2009/2008 Difference 2009/2010 Difference Net sales ４２２.６*1 ３８９.０*2 Alcohol (７．４) (３.０) revenue beverages Operating ２９
Slide 18: San Miguel Brewery (SMB)
San Miguel Brewery (SMB) I. Results and Forecasts (incorporation into Kirin) 1. SMC is from October ￥billion １ 2008 to March 2009, SMB 2009 Consolidated Net Income 2010 Consolidated Net Income Forecast ２ is from April 2009 to September 2009; SMB ＋0.5 ＋1.5 2. Forecasted currency SMC (0.6) ― exchange
Slide 19: Pipeline of Therapeutic Antibodies (as of April 2010)
Pipeline of Therapeutic Antibodies (as of April 2010) Overview of Development Pipeline Therapeutic Preclinical Ph I Ph II Area KW-0761(CCR4) Eleven U.S. (Ph I/IIa) Japan (Ph II) Antibodies KRN330(A33) Cancer U.S. (Ph I/IIa) (nine BIW8962(GM2) POTELLIGENT® U.S. (Ph I/IIa) antibodies, one ASKP1240(CD4
Slide 20: 2010 Cash Flows
2010 Cash Flows Controls Controls on on capital capital investment investment and and asset asset liquidation liquidation has has resulted resulted in in repayment repayment ofof interest- interest- bearing bearing liabilities, liabilities, setting setting the the stage stage for for aa quantum quan
Slide 21: Amortization of goodwill, etc. for FY2010
Amortization of goodwill, etc. for FY2010 Total ①＋②＋③ Billion yen Year of ①＋② Brand investment Kirin HD Investment Goodwill Amortizati Balance Year Amortizati Balance Year Amortizat Balance Year on ① remaining Remaining on ② remaining Remaining ion ③ remaining Remaining Total: Arising before 2006 (Ａ
Slide 22: Change in accounting periods
Change in accounting periods ●FY2008 FY2007 FY2008 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Kirin HD Kirin Pharma Kyowa Hakko Kyowa Hakko Kirin Lion Nathan National Foods San Miguel ●FY2009 FY2008 FY2009 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Kirin HD
Slide 23: Impact of foreign exchange (Australian dollar)
Impact of foreign exchange (Australian dollar) Impact Impact of of changes changes in in foreign foreign exchange exchange (AU (AU $) $) on on operating operating results results (compared (compared to to previous previous fiscal fiscal year) year) 2009 2010 (Billion yen) Actual Forecast Sales (109.
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