Asahi Group Holdings Ltd · TSE:2502
Asahi — Asahi Breweries — FY2007 Earnings Presentation
20 slides from Asahi's earnings presentation, February 2008
Slide 1: 2007 Financial Results Briefing
2007 Financial Results Briefing February 2008 ASAHI BREWERIES, LTD. URL http://www.asahibeer.co.jp
Slide 2: Contents
Contents 2007 Overview Overview of 2007 Results ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 1 Overview of 2007 Group Management ... ... ... ... ... ... ... ... ... ... ... 2 Strengthening Group Growth Foundations ... ... ... ... ... ... ... ... 3 Promoting Earnings Structure Refo
Slide 3: Overview of 2007 Results
Overview of 2007 Results Operating income Net income (billions of yen) Net sales (billions of yen) (billions of yen) 120.0 1,500.0 2007 2006 YoY (% ) 1,464.1 1,444.2 1,446.4 1,430.0 Alcoholic beverages 1,030.7 1,031.0 (0.3) 0% 1,400.3 Soft drinks 268.3 249.9 18.4 7% 100.0 101.2 1,400.0 Food and heal
Slide 4: Overview of 2007 Group Management
Overview of 2007 Group Management ■ Medium-Term Business Strategy (2007 – 2009) Alcoholic • Reinforce the foundations of Asahi’s brands, focusing on Asahi Super Dry Beverages Business → Produce stable, long-term cash flows • Further growth of existing group companies Group Business • Pursue synergie
Slide 5: Strengthening Group Growth Foundations
Strengthening Group Growth Foundations ■ Promote reorganization of group businesses and alliances with companies outside the group Asahi Asahi Breweries Breweries Kagome Kagome Business/capital alliance Co., Co., Ltd. Ltd. Co., Co., Ltd. Ltd. Improve corporate value of both companies through compreh
Slide 6: Promoting Earnings Structure Reform
Promoting Earnings Structure Reform ◆ Building optimum production and distribution structures for the group -Transfer production and distribution functions for soft drinks and RTD beverages to Asahi Breweries’ Ibaraki Brewery Æ Soft drink bottle-can production line put into operation; Production of
Slide 7: Growth in the Chinese Soft Drinks Business
Growth in the Chinese Soft Drinks Business Tingyi-Asahi-Itochu Beverages Holding Co., Ltd. (equity method subsidiary) ◆ Assist efforts to improve performance through support in areas such as production technology, financial management, and strategy formulation ◆ Success in category strategies focuse
Slide 8: Group Management Issues
Group Management Issues Objectives set out under domestic beer business growth strategy not achieved ◆ Aim to bolster the competitiveness of beer and beer-type beverages with a pivotal focus on brand investment in Asahi Super Dry - Improved performance figures for the Super Dry brand; Style Free a h
Slide 9: 2008 Performance Forecast
2008 Performance Forecast Operating income Net income (billions of yen) Net sales (billions of yen) (billions of yen) 2008 targets YoY (% ) 2007 120.0 1,600.0 Alcoholic beverages 1,044.0 1,030.7 13.3 1% 1,511.0 Soft drinks 302.9 268.3 34.6 13% 100.0 1,464.1 1,500.0 Food and healthcare 77.7 69.2 8.5
Slide 10: Beer-Type Beverages 2007 Sales
Beer-Type Beverages 2007 Sales ■ Beer and Beer-Type Beverages: Taxable Sales Volume (Jan – Dec 2007) (millions of cases) Industry total Asahi Breweries Cases YoY change Composition Cases YoY change Market share Beer 274.04 (0.9%) 55.2% 135.28 (1.7%) 49.4% Happoshu 121.67 (2.5%) 24.5% 33.73 14.5% 27.
Slide 11: Beer-Type Beverages 2008 Sales Targets
Beer-Type Beverages 2008 Sales Targets ■ 2008 Sales Targets by Brand (millions of cases) Market outlook 2008 target 2007 YoY (%) 08 vs. 07 Super Dry 126.30 130.70 (3.4%) Beer Approx. -4–5% Jukusen 2.50 1.00 150.0% Happoshu Approx. -5–6% Other 1.20 2.99 (59.9%) New genre Flat / slight inc. Beer total
Slide 12: Beer-Type Category 2008 Brand Strategy
Beer-Type Category 2008 Brand Strategy 2007 2007 First First Half Half of of 2008 2008 Super Dry: Implement measures, primarily targeting core users, to reinforce fundamental brand strengths Beer Launch: Launch: Mar. Mar. 11 11 “Flavor is Joy!” Renewal of the “Feel Establish flagship brand in the gi
Slide 13: Other Alcohol Category Results and Strategy
Other Alcohol Category Results and Strategy ■ Overview of key brands in 2007 •• Strong Strong sales sales of of core core Shochu Shochu brands: brands: Kanoka Kanoka recorded recorded double double digit digit growth growth for for the the tenth tenth consecutive consecutive year year and Satsumatsu
Slide 14: Streamlining of Marketing Costs
Streamlining of Marketing Costs ■ Advertising and sales promotion expenses by category (billions of yen) 2002 2003 2004 2005 2006 2007 YoY 2008 plan YoY Sales promotion premium 67.9 77.9 76.3 77.8 80.8 77.9 (2.9) 75.2 (2.7) Advertising/promotional expenses 38.1 31.2 32.3 32.2 32.7 34.9 2.2 31.8 (3.1
Slide 15: Soft Drinks Business Overview and Strategy
Soft Drinks Business Overview and Strategy Asahi Soft Drinks Co., Ltd. ◆ Growth Strategies, Structural Reform, and Taking on Challenges in New Areas • Growth of the 3 key brands Wonda, Mitsuya and Jurokucha (Mitsuya achieved sales of 30 million cases) • Sales volume grew 8%, exceeding the industry a
Slide 16: Asahi Soft Drinks 2008 Brand Strategy
Asahi Soft Drinks 2008 Brand Strategy N --- New product Annual Annual sales sales 2007 2007 January January February February March March April April R --- Renewal target target N N Focus on low/non-sugar market, Wonda offer next-generation canned coffee products 33 33 M M cases cases Jan 8 Jan 29 Y
Slide 17: Food and Healthcare Business Overview and Strategy
Food and Healthcare Business Overview and Strategy Asahi Food and Healthcare Co., Ltd. ◆ Accelerate Growth Strategies, Structural Reform, and Measures to Ensure Safety and Confidence • Achieved three consecutive terms of growth in sales and profit due to strong sales of mainstay Mintia, Balance Up,
Slide 18: Overseas Business Overview and Strategy
Overseas Business Overview and Strategy Chinese beer business Haitai Beverage of South Korea • Targets for the Chinese beer business not achieved owing to sharp increases in ingredient costs and intensifying competition from national brands. • Losses expanded at Haitai Beverage Co., Ltd., as its big
Slide 19: Financial and Cash Flow Strategy
Financial and Cash Flow Strategy Operating Operatingcash cashflow flow(cumulative (cumulative2007–2009) 2007–2009) Approx. ¥300 bn ◆ Cash flow allocation guideline → Allocate flexibly as appropriate given the current operating and business environments • Capital investment aimed at strengthening ope
Slide 20: Information in this material is not intended to solicit sale or purchase of shares
Information in this material is not intended to solicit sale or purchase of shares in Asahi Breweries. The views, estimates and other information expressed in this document are based on the company's judgment at the time of publication, and no guarantees are provided regarding the accuracy of such i