Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Nomura Investment Forum 2012
23 slides from Kirin's conference presentation, Dec 5, 2012
Slide 1: Increase enterprise value through organic growth
Increase enterprise value through organic growth Nomura Investment Forum 2012 December 5, 2012 Senji Miyake President and CEO Kirin Holdings Company, Limited
Slide 2: Agenda
Agenda Introduction KIRIN at a glance and recent results Strategic overview KV2021, Medium-Term Business Plan 2013-2015 Q&A 2
Slide 3: Introduction
KIRIN introduction
Slide 4: Well-balanced, global business portfolio
Well-balanced, global business portfolio Beer #2 Black tea #1 Emerging ～High growth～ Emerging Developed ～Large scale ～Stable ・High growth～ ・High growth～ Beer #2 Carbonated #3 Beer #1 Dairy #1 *Source： Taxation figures etc. 4
Slide 5: Building on KV2015 with a new stage to produce steady, strong results
Building on KV2015 with a new stage to produce steady, strong results Moving Forward 2019-2021 2016-2018 Stepping Out 2013-2015 2010-2012 2007-2009 KV2015 KV2021 Secured overseas integrated Grow Japanese integrated beverages beverages business foundation business Strengthened cost competitiven
Slide 6: Recent results and outlook
Recent results and outlook FY12 Guidance - Unchanged （Billion yen） Consolidated 3Q FY12 Guidance Sales 1,606.1 2,220.0 Operating income 105.2 155.0 Net income 25.3 48.0 Normalized EPS* - 116yen Strong performance in overseas integrated beverage business * Normalization: Removing extraordinary gain
Slide 7: Strategic overview
KIRIN Strategic overview
Slide 8: KV2021 Business model
KV2021 Business model Sustainably increase enterprise value through organic growth ～Leverage diversity and co-create brand value with consumers and communities～ Organic Pursue organic growth within the areas developed under KV2015 High value Produce strong results and increase enterprise value Susta
Slide 9: Growth strategy / 2013-2015 MTBP
Growth strategy / 2013-2015 MTBP Organic Deliver results aligned with the business 3-year shift to organic growth stage of each region Achieve growth in the Japanese integrated beverages business Generate stable cash flow Target: Mid single-digit CAGR in normalized EBITDA* Guidance (to be update
Slide 10: Financial strategy / 2013-2015 MTBP
Financial strategy / 2013-2015 MTBP Enhance shareholder returns Steadily reduce debt and increase financial flexibility <Cash flow during 2013MTBP> Operating Cash Flow Enhance returns to shareholders ¥700bn plus Increase dividends in line with (Higher than previous MTBP) growth in normalized EP
Slide 11: Japan integrated beverages business
Japan integrated beverages business 11
Slide 12: Further growth through fostering strong brands
Further growth through fostering strong brands ＜New management structure (Jan 2013～）＞ Kirin Company Alcohol beverages Soft drinks Kirin Brewery Mercian Kirin Beverage Optimize resource allocation beyond alcohol and soft drinks categories Pursue brand-centered management (strong products, strong KI
Slide 13: Innovation
Innovation Kirin Ichiban Frozen Draft “A new draft beer experience—frozen to minus 5 degrees to sustain icy cold drinking pleasure over 30 minutes” World first! Recognized as functional food that limits the absorption of dietary fat Kirin Mets Cola Innovation 13
Slide 14: Overseas integrated beverages business: Oceania, Brazil, Asia
Overseas integrated beverages business: Oceania・Brazil・Asia 14
Slide 15: Oceania
Oceania Alcohol beverages Boost market presence through appeal of strengthened brand portfolio <Achievements under 2010 MTBP> International International Secured leading share in Australian beer market Premium Premium Grew XXXX Gold to become Australia’s No. 1 beer brand Enhanced line-up in gr
Slide 16: Brazil
c BOLEERH Brazil THE POWER OF RESPECT 16
Slide 17: Brazil
Brazil Boost sales in line with market growth while improving efficiency to reduce costs Realize a significant increase in earnings Construct strong brand portfolio Fine-tune distribution network to ensure optimal service to expanding customer touch points Reform value chain processes to achi
Slide 18: Asia
Asia Southeast Asia (excl. Philippines) Build a business foundation in each market, centered on Vietnam & Thailand, under Kirin Holdings Singapore Note: The existing business relationship with Fraser & Neave is currently under review Soft drinks Vietnam - Strengthen well-known Interfood brands (Wo
Slide 19: Pharmaceuticals & bio-chemicals business (Kyowa Hakko Kirin)
Pharmaceuticals & bio-chemicals business (Kyowa Hakko Kirin) Enhance product line-up and pipeline in core therapeutic areas and accelerate development of strong competitive positions in each market region Continue to advance global development by strengthening operations in the US and Europe and
Slide 20: CSR policy
CSR policy In support of Kirin’s brand-centered management approach, through which Kirin aims to deepen engagement with stakeholders and take its CSR activities to the next level, Kirin is adopting a “CSV” (Creating Shared Value*) approach to business. With CSV, Kirin aims to create value together w
Slide 21: Management summary
Management summary Under KV2015, Kirin has developed as an integrated beverages group, making a quantum leap in growth to create an expanded, global business base Reflecting changes to the operating environment and business issues facing the Group, Kirin has developed a new roadmap for progress
Slide 22: For reference: Definitions of terms and indices
For reference: Definitions of terms and indices <EBITDA> As revised Normalized EBITDA = operating income + depreciation + goodwill amortization + dividends received from equity method affiliated companies Previous EBITDA = operating income + gains or losses on equity method investments + depreciatio
Slide 23: This material is intended for informational purposes only and is not a solicitation or
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