Takara Holdings Inc. · TSE:2531
Takara — Investor Presentation (May 2024)
75 slides from Takara's investor presentation, May 31, 2024
Slide 1: Takara Holdings Inc. Information Meeting
Takara Holdings Inc. Information Meeting May 2024 Hideo Takahashi, Managing Director
Slide 2: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 3: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 4: Overview of Takara Group
Overview of Takara Group Trade name: Takara Holdings Inc. Founded: 1842 Established: September 6, 1925 exchange listings: 2531 Tokyo (Prime section) Head office: Kyoto, Japan Representative: Mutsumi Kimura, President Issued Capital: ¥13,226 million Number of employees ： 5,492 (Takara Holdings Consol
Slide 5: Business Structure of Takara Group
Business Structure of Takara Group Takara Holdings Inc. Takara Shuzo Takara Shuzo Int’l Group Takara Bio Group Domestic Business Overseas Business Biomedical business Others 5
Slide 6: Business History
Business History 1842 Founded in Takenakacho, Fushimi ：Domestic Business 1925 Founded Takara Shuzo co., ltd. ：Overseas Business (currently Takara Holdings Inc.) ：Biomedical Business 1951 Started exporting the Sho Chiku Bai brand of sake to the U.S. 1957 Entered beer business (Withdrew in 1967) 1979
Slide 7: Trend in Operating Income by business
Trend in Operating Income by business Our strength lies in the fact that we have built well-balanced business structures that are resilient to changing conditions thanks to having multiple, fully independent businesses that differ in their content and areas of development 50 （billions of yen） Takara
Slide 8: Medium-Term Management Plan for 2025
Medium-Term Management Plan for 2025 Long-Term Management Plan “TaKaRa Group Challenge for the 100th（TGC100） ” (for 2020-2025) Medium-Term Management Plan for 2022 Medium-Term Management Plan for 2025 for 2020-2022 for 2023-2025 During this period, Takara Group intends to accelerate investing in Dur
Slide 9: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 10: Takara Holdings (Consolidated) Financial results
Takara Holdings (Consolidated) Financial results for the fiscal year ended March 31, 2024 （Millions of Yen） Change from ’24/3 Actual YOY (%) the plan for the 1st year of the MMP2025（％） Net Sales 339,372 (3.2) (4.4) Gross Profit 113,933 (5.0) (5.8) Operating 22,242 (41.4) (15.4) income Ordinary 23,33
Slide 11: Financial results by Business
Financial results by Business for the fiscal year ended March 31, 2024 （Millions of Yen） Change from ’24/3 Actual YOY (%) the plan for the 1st year of the MMP2025（％） Net Sales 123,786 +0.7 +0.2 Takara Gross profit 31,728 +8.4 +1.8 Shuzo Operating income 5,503 +12.5 +21.2 Net Sales 160,427 +16.7 (3.1
Slide 12: Statements of Cash Flows and Financial targets
Takara Holdings (Consolidated) Statements of Cash Flows and Financial targets for the fiscal year ended March 31, 2024 ◇Consolidated Statements of Cash Flows （Millions of Yen） ’23/3 Actual ’24/3 Actual Change cash flows from operating activities 45,478 29,178 (16,299) cash flows from investing activ
Slide 13: Investment Performance, Dividends, Treasury Stock
Investment Performance, Dividends (planned) , Acquisition and cancellation of treasury stock for the fiscal year ended March 31, 2024 The Takara Group as a whole invested 27.0 billion yen. The expected dividend is 29 yen, and we acquired 3.0 billion yen of treasury stock between November and Februar
Slide 14: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 15: Financial Forecasts for fiscal year ending March 2025
Takara Holdings (Consolidated) Financial Forecasts for the fiscal year ending March 31, 2025 （Millions of Yen） Target of the MMP2025 '25/3 Forecast Change(%) (’26/3） 420.0 billion Net Sales 362,000 ＋6.7 yen or more Gross Profit 123,500 ＋8.4 ― Operating 38.0 billion yen 25,700 ＋15.5 income or more Or
Slide 16: Financial results by Business forecasts
Financial results by Business for the fiscal year ending March 31, 2025 （Millions of Yen） Change Target of the '25/3 Forecast MMP2025 (%) (’26/3） Net Sales 122,373 (1.1) 123.2 billion yen Takara Gross profit 32,160 ＋1.4 ― Shuzo Operating income 5,731 ＋4.1 5.0 billion yen Takara Net Sales 179,000 ＋11
Slide 17: Impact of Exchange Rate Fluctuations
Impact of Exchange Rate Fluctuations for the fiscal year ending March 31, 2025 The impact of exchange rate fluctuations on Takara Shuzo and Takara Shuzo International Group combined is minor ◇Status of main exchange rates (compared to the previous fiscal year) '24/3 '25/3 Change Actual Forecast USD/
Slide 18: Cash Flows and Financial Targets
Takara Holdings (Consolidated) Statements of Cash Flows and Financial Targets for the fiscal year ending March 31, 2025 ◇Consolidated Statements of Cash Flows （Millions of Yen） '24/3 '25/3 Change Actual Forecast cash flows from operating activities 29,178 33,431 4,253 cash flows from investing activ
Slide 19: Investment Plan, Dividends (planned)
Investment Plan, Dividends (planned) for the fiscal year ended March 31, 2025 The Takara Group as a whole plans to invest 25.5 billion yen. The dividend forecast is 31 yen, with a payout ratio of 35.2% ◇Investment Plan （Billions of Yen） ’25/3 Forecast Overview ・Matsudo Plant: Integration of large PE
Slide 20: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 21: Main Products of Takara Shuzo
Main Products of Takara Shuzo We manufacture and sell alcoholic beverages in a wide range of categories focusing on light-alcohol refreshers such as canned chu-hi, as well as Japanese traditional alcohol including shochu, sake and Hon- mirin Sales by Business Category (Fiscal year ended March 31,
Slide 22: Strengths Underpinning the Takara Brand
Strengths Underpinning the Takara Brand Engineering excellence and development capability nurtured in over 180 years of its history ◆Barrel-aged shochu in about 20,000 casks ◆Japanese sake brewing by combining (Kurokabegura in Miyazaki） traditional techniques and modern technologies (Shirakabegura i
Slide 23: Takara Shuzo: Business Strategy
Takara Shuzo: Business Strategy in the Medium-Term Management Plan for 2025 Basic We will engage in thorough brand development, policy raise profit margins, and expand Washu into global markets ●Strengthen product and brand development capabilities to substantially boost profit and profit margins ●E
Slide 24: Brand Development Policy
Brand Development Policy in the Medium-Term Management Plan for 2025 We will develop stronger brands through increased expenditure on promotion, etc. for the key brands ◆key brands ・Gokujo <Takara Shochu> ・Takara Shochu Highball and Takara Karakuchi Zero Ball ・Sho Chiku Bai Shirakabegura “MIO” Spark
Slide 25: Initiatives of Developing key brands
Initiatives of Developing key brands In the fiscal year ending March 31, 2024, total net sales of key brands were 5.6% higher, Gross profit were 11.9% higher than the year-earlier result. In the fiscal year ending March 31, 2025, total net sales of key brands will be 6.4% higher, Gross profit will b
Slide 26: Key brands Development Plan
Initiatives of Developing key brands The sales composition ratio of key brands increased in the fiscal year ended March 31, 2024. Price revisions led to improved profit margins, and overall gross profit margins also improved. We will continue to expand key brands and improve profit margins in the fi
Slide 27: Takara Karakuchi Zero Ball
Initiatives of Brand Development <Takara Karakuchi Zero Ball> Plans call for sales of 700,000 cases (189% increase from the previous fiscal year) in the fiscal year ending March 2025. Sales volume increased in the fiscal year ending March 2024 due to TV commercials highlighting the product's compati
Slide 28: Sho Chiku Bai Shirakabegura MIO Sparkling Sake
Initiatives of Brand Development <Sho Chiku Bai Shirakabegura “MIO” Sparkling Sake> Plans call for sales of 600,000 cases (domestic: 500,000 cases, overseas: 100,000 cases) in the fiscal year ending March 2025. In the fiscal year ending March 2024, the brand will be revitalized through TV commercial
Slide 29: Takara Shochu Highball
Initiatives of Brand Development <Takara Shochu Highball> Plans call for sales of 17.8 million cases (104% YoY) in the fiscal year ending March 2025. In addition to further cultivating fans through continued sponsorship of BS programs and the use of fan sites, the company will attract new users by s
Slide 30: Sho Chiku Bai Subaru
Initiatives of Brand Development <Sho Chiku Bai “Subaru”> To revitalize the market of “Fragrant Washu,” we will acquire users through the use of sampling and digital advertisement ●Obtaining a hands-on experience of ●Introducing digital advertisement “Fragrant Washu” through sampling ・Distribution p
Slide 31: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 32: Overseas Business of Takara Shuzo Int'l Group
Overseas Business of Takara Shuzo Int’l Group We develop two businesses: Overseas Alcoholic Beverages Business and Japanese Food Wholesale Business in Overseas ◆Overseas Alcoholic Beverages Business ◆Japanese Food Wholesale Business in Overseas Net Sales for the fiscal year ending March, 2024 Net Sa
Slide 33: Market Environment: Growth of Export Market
Market Environment: Growth of Export Market Exports of Japan’s agricultural, forestry and fishery products and foods are increasing every year. Growth in 2023 showed a year-on- year growth of 102.9% ◇Trends in exports of Japan’s agricultural, forestry and fishery products and foods (Billions of yen)
Slide 34: Market Environment: Growth of Japanese Restaurants Abroad
Market Environment: Growth of Japanese Restaurants Abroad The number of Japanese restaurants in the world is rapidly growing, 3.4 times larger than that 10 years ago ＜2013＞ ＜2019＞ ＜2021＞ ＜2023＞ Approx. → Approx. → Approx. → Approx. 55,000 156,000 159,000 187,000 * Upper numbers are from 2023, lower
Slide 35: Group Company's Transaction Case
Takara Shuzo Int’l Group: Group Company’s Transaction Case Although Japanese foods are mainly used at Japanese restaurants, they are increasingly adopted by various types of cuisine, such as Western, Asian and fusion cuisine ■Composition of our customer bars and restaurants Thai cuisine: 1% (135%) F
Slide 36: Takara Shuzo Int'l Group: Business Strategy
Takara Shuzo Int’l Group: Business Strategy for the fiscal year ended March 31, 2025 Basic We will achieve revenue growth for the whole Group through the rapid growth of the Washu and Japanese policy food wholesale business and the stable growth of Western-style liquor business ●By making maximum us
Slide 37: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 38: Business Sites of Overseas Alcoholic Beverages Business
Business Sites of Overseas Alcoholic Beverages Business We have manufacturing sites in the U.S., China, the U.K., and Canada 38
Slide 39: Overseas Alcoholic Beverages Business Strategy (Washu)
Takara Shuzo Int’l Group: Business Strategy for the fiscal year ended March 31, 2025 Overseas Alcoholic Beverages Business (Washu) Basic We will aim for the rapid growth of the Washu business, maximizing synergies between Takara Shuzo and policy overseas Group companies. ●”Product Development” ・Trad
Slide 40: Initiatives of Product Development
Overseas Alcoholic Beverages Business(Washu) : Initiatives of Product Development We will further enhance product portfolios by introducing high- added-value, high-profit products produced both in Japan and locally ●In the United States, we will strengthen the development of Shirakabegura high-added
Slide 41: Initiatives of MIO Brand Development
Overseas Alcoholic Beverages Business(Washu) : Initiatives of “MIO”Brand Development Due to an increase in market inventory in the fiscal year ended March 31, 2023 caused by logistics disruptions, sales in the fiscal year ended March 31, 2024 were lower year-on-year. However, sales are expected to g
Slide 42: Initiatives of MIO Brand Development
Overseas Alcoholic Beverages Business(Washu) : Initiatives of “MIO”Brand Development We will revitalize the “MIO” brand by disseminating information on social media, etc. ●Revitalize the MIO brand by utilizing exclusive overseas products such as “MIO” ＜CRISP＞ and ＜NIGORI＞ ●Strengthen information dis
Slide 43: Initiatives to expand exports (SAKE)
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand exports (SAKE) We will strengthen the “MIO” lineup and introduce exclusive overseas products in the United States, Asia, and Europe. We will also expand in various countries with high-added-value products under the Sho Chiku Bai br
Slide 44: Initiatives to expand exports (RTD)
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand exports (RTD) We export TaKaRa CHU-HI, a canned product that meets local needs, to the U.S., which is the largest ready-to-drink products market. We export Takara NIPPON CHU-HI “Selected from Japanese Farm” to Asia, Oceania and Eur
Slide 45: Initiatives to expand Innovative SAKE
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand “Innovative SAKE” Develop innovative washu such as sake cocktails, and expand sales in collaboration with Mutual Trading Co., Ltd. ＜Ontario＞ ●Increasing sales of sake cocktails by introducing new flavors and small-volume developmen
Slide 46: Initiatives to expand Innovative SAKE (WAKAZE)
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand “Innovative SAKE” We will continue our collaboration with WAKAZE, a Japanese sake startup company in which we invested in January 2023, and begin contract manufacturing of canned sparkling sake for the U.S. market ＜cooperation with
Slide 47: Overseas Alcoholic Beverages (Western-style liquor) Strategy
Overseas Alcoholic Beverages Busines (Western-style liquor) : Business Strategy for the fiscal year ended March 31, 2025 Overseas Alcoholic Beverages Business (Western-style liquor) Basic We aim to boost the value of our brands, such as Tomatin and Blanton’s, and achieve stable earnings policy growt
Slide 48: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 49: Business Model of Japanese Food Wholesale Business
Business Model of Japanese Food Wholesale Business Our Japanese Food Wholesale Business imports products via routes involving specialized trading companies or through direct trading, and sell them to local restaurants and supermarkets Products we handle (Produced in Japan/other countries) Wholesale
Slide 50: Japanese Food Wholesale Business Strategy
Japanese Food Wholesale Business : Business Strategy for the fiscal year ended March 31, 2025 Japanese Food Wholesale Business Basic We will promote the diversification of sales channels, pioneer new areas, and develop and cultivate differentiated products to achieve policy rapid growth significantl
Slide 51: Business Sites of Japanese Food Wholesale Business
Business Sites of Japanese Food Wholesale Business Leveraging our worldwide network in the U.S., Europe and Australia to create synergy by way of sharing information on popular items and enhancing procurement capability 51
Slide 52: Exports of Japanese food to the United States
Market environment: Exports of Japanese agricultural, forestry, and fishery products and food to the United States Established Exports a worldwide of agricultural, network forestry, since its and fishery entry to products andthe market food to the in the United States have ended fiscal year increase
Slide 53: Initiatives to expand sites
Initiatives to expand sites As of December 2022, the company has 9 sites in 8 states, mainly on the West Coast and East Coast where Japanese restaurants are concentrated, and only covers 4 of the top 10 states by number of Japanese restaurants. ◇Sites as of December 2022 〇Number of Japanese restaura
Slide 54: Initiatives to expand sites
Initiatives to expand sites As of January 2023, Yamasho, based in Illinois and Georgia, and K Sea Trading, based in Florida, will join the group, covering 9 of the top 10 states. ◇Sites as of January 2023 〇Number of Japanese restaurants *Yellow indicates our coverage area Number of 2022 Japanese res
Slide 55: Initiatives to expand sites
Initiatives to expand sites In September 2023, Minamoto Wholesale, based in Austin, Texas, joined the group. Texas ranks 4th in the U.S. in terms of the number of Japanese restaurants by state, with the highest growth rate among the top 5 states, and the company plans to strengthen sales in this exp
Slide 56: Plans to expand operations in Texas
Plans to expand operations in the rapidly growing state of Texas Following the M&A of Minamoto Wholesale Limited, LLC, we plan to open a new base in Houston in the fall of 2024. This will further strengthen sales in the surrounding areas, including major metropolitan areas in southern Texas ・ Locati
Slide 57: New base development plans
Japanese Food Wholesale Business : New base development plans In 2025, we plan to open a new base in Seattle, the largest city in the western U.S. state of Washington Expanding to 15 bases in 12 states in North America Mutual Trading Seattle Branch (Opening in 2025) Number of Japanese Growth rate 20
Slide 58: Initiative plan of New product development
Japanese Food Wholesale Business : Initiative plan of New product development We will expand differentiated products such as plant-based products, organic and vegan foods, and high-quality Wagyu beef ●Expanding differentiated products Plant-based products Organic and vegan High-quality Wagyu (konjac
Slide 59: Initiative plan of Diversification of sales channels
Japanese Food Wholesale Business : Initiative plan of Diversification of sales channels We will diversify sales channels by expanding sales routes to mass retailers and for processing, export, etc. ●Developing American and Asian mass retailers in North America ●Entering the catering industry, which
Slide 60: Initiative plan of Strengthening sales of washu
Japanese Food Wholesale Business : Initiative plan of Strengthening sales of washu We will promote measures to strengthen sales of Washu as well as initiatives jointly undertaken by the head office and the Group ● Promoting measures to strengthen sales of Washu ・Accelerate the development of retail
Slide 61: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 62: Business overview of Takara Bio Group
Business overview of Takara Bio Group Our Bioindustry Business, which forms the bases for our technologies and profits, has biotech researchers around the world as its customers Reagents Instruments CDMO Reagent Kits PCR Instruments Gene analysis services RetroNectin® Single cell analysis system Cel
Slide 63: Takara Bio Group: Business Strategy
Takara Bio Group: Business Strategy for the fiscal year ended March 31, 2025 Basic By improving productivity and selecting and focusing on R&D projects, we will put our profits back on track for policy growth. ●Establish a position as a global platform that provides infrastructure for the life scien
Slide 64: Reagents Business Strategy
Reagents Business : Business Strategy for the fiscal year ended March 31, 2025 Reagents Business Basic Growth of the reagent business through global and multi-polar (glocal) expansion of general research reagents policy Sweden China U.S. Janan India Shifting from a China-centered manufacturing syste
Slide 65: Instruments Business Strategy
Instruments Business : Business Strategy for the fiscal year ended March 31, 2025 Instruments Business Basic In addition to accelerating the development of new models of PCR-related equipment and single-cell analysis equipment that can handle a variety of policy tests, the company will also work to
Slide 66: CDMO Business Strategy
CDMO Business : Business Strategy for the fiscal year ended March 31, 2025 CDMO Business *CDMO: Contract Development and Manufacturing Organization. A business model of providingdevelopment and production services for biopharmaceuticals and other items on contract basis. Basic Active technological d
Slide 67: Gene Therapy Business Strategy
Gene Therapy Business : Business Strategy for the fiscal year ended March 31, 2025 Gene Therapy Business Basic Application for marketing authorization of N-ESO-1 siTCR™ gene therapy product (TB1301) utilizing siTCR™ technology in Japan in ’26/3 is under preparation. policy Adding high added value to
Slide 68: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 69: Human Resources
Enhance the value chain that supports resolving social issues ＜Human Resources＞ ●Strengthening human resources to expand overseas business ・ Continue to strengthen the placement of young employees at Takara Shuzo Int’l Group and overseas locations ・ Host a Global Cafe (online social event with peopl
Slide 70: Responding to Climate Change
Enhance the value chain that supports resolving social issues ＜Responding to Climate Change＞ ●Continuing efforts to reduce CO₂ emissions ・Gasification of heavy oil boilers at Kurokabegura ・Promote modal shift to ferries and railways at Takara Shuzo ●Initiatives for the ’24/3 ・January 2024: Takara Ho
Slide 71: Resolve social issues through products and services
Resolve social issues through the business of providing Products and services ●Developing environmentally friendly products (Takara Bio Group) ・Shifted to packages using FSC-certified ・Switched from one side aluminum pouch materials and vegetable oil Ink to aluminum-free pouch *For some products, do
Slide 72: Contents
Contents １．Overview of Takara Group ２. Financial Performance 2-1. Financial results for the fiscal year ending March 31, 2024 2-2. Financial forecasts for the fiscal year ending March 31, 2025 ３．Domestic Business ４．Overseas Business 4-1. Overseas Alcoholic Beverages Business 4-2. Japanese Food Whole
Slide 73: Shareholder Return
Shareholder Return Financial policy Create cashflow by increasing the efficiency of assets and through the sale of strategic shareholdings while enhancing global cash management, for the purpose of accelerating investments in growth and high-priority fields based on the maintenance of sound financia
Slide 74: Smiles in Life
Smiles in Life ～Smiles are Life's Treasures～ By contributing to enriching the well-balanced diet of people around the world through washu and Japanese food, and by contributing to healthy living through our bio business, we aim to realize our vision, "Smiles in Life." Create value in Contribute to a
Slide 75: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation, other than those based on historical fact, concerning the current plans, prospects, strategies and expectations of the Company and its Group represent forecasts of future results. While such statements are based on the conclusions of manage