Sapporo Holdings Limited · TSE:2501
Sapporo — 9M 2013 Earnings Presentation
27 slides from Sapporo's earnings presentation, Oct 31, 2013
Slide 1: Sapporo Group Business Results Presentation for the Nine Months ended September 30, 2013
2013 Sapporo Group Business Results Presentation for the Nine Months ended September 30, 2013 October 31 2013 SAPPORO HOLDINGS LIMITED URL http://www.sapporoholdings.jp/english Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 1/27
Slide 2: Contents
Contents 1. Overview of the First Nine Months of 2013 2. Progress of Implementation of 2013 Basic Strategies 3. Overview of Results for the First Nine Months of 2013 Reference: Management Targets 2013-2014 Reference: Supplementary Information to Results for the First Nine Months of 2013 Copyright, 2
Slide 3: 1. Overview of the First Nine Months of 2013
1. Overview of the First Nine Months of 2013 Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 3/27
Slide 4: Overview of the First Nine Months of 2013
Overview of the First Nine Months of 2013 Overview of the First Nine Months of 2013 ¾ Sales increased by ¥14.7 billion, operating income by ¥3.8 billion, and net income by ¥4.8 billion •Japanese Alcoholic Beverages: Sales increased by ¥3.1 billion, operating income by ¥4.6 billion Sales volume of be
Slide 5: Overview of the First Nine Months of 2013
Overview of the First Nine Months of 2013 Overview of the First Nine Months of 2013 •International Business: Sales increased by ¥9.9 billion, operating income by ¥0.8 billion Both sales and profits increased on the back of local currency-based growth in North America and Vietnam as well as the addit
Slide 6: 2. Progress of Implementation of 2013 Basic Strategies
2. Progress of Implementation of 2013 Basic Strategies Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 6/27
Slide 7: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Creating new opportunities for growth ¾ Restructuring of North American Production Facilities: International Business • Production of Sapporo brand products for the U.S. market was outsourced from SLEEMAN Breweries in Canada to City Brewing Company
Slide 8: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Creating new opportunities for growth ¾ Reorganization of restaurant business in Singapore: Restaurants Singapore Tonkichi •Transfer of the restaurant business in Singapore from POKKA Corporation (Singapore) Pte. Ltd. to Sapporo Lion Limited in Jan
Slide 9: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Carrying out growth measures ¾ Activities to enhance the value of existing properties: Real Estate •In consideration of the resolution of excess supply due to a spate of office building construction and recovery in rent levels in the real estate re
Slide 10: Progress of Implementation of 2013 Basic Strategies
Progress of Implementation of 2013 Basic Strategies Carrying out growth measures ¾ State of progress in Alcoholic Beverages Business in Vietnam: International Business •Steady progress with sales volume in Vietnam, where full -scale marketing began in April 2012, and exports to neighboring countries
Slide 11: Implementation Status of Strategic Investments and Credit Ratings
Progress of Implementation of 2013 Basic Strategies Implementation Status of Strategic Investments (Including Ordinary Capex) Credit Ratings <Capital expenditure (cash basis) and lease fees> <Credit rating by JCR> Consolidated total: Approx. ¥13.4bn ¾ Property, plant and equipment, intangible assets
Slide 12: 3. Overview of Results for the First Nine Months of 2013
3. Overview of Results for the First Nine Months of 2013 Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 12/27
Slide 13: Overview of Results: Special Factors
Overview of Results for the First Nine Months of 2013: Special Factors Breakdown of special factors (net increase, etc.) that prevent meaningful year -on-year comparisons between net sales and operating income in 2012 and 2013 are shown below. See the Supplementary Information to the Earnings Report
Slide 14: Overview of Results for the First Nine Months of 2013 –Consolidated–
Overview of Results for the First Nine Months of 2013 –Consolidated– (billions of yen) YoY change 2012 3Q 2013 3Q Amount % Consolidated net 354.7 369.5 14.7 4.2% sales Consolidated 5.5 9.4 3.8 68.9% operating income Consolidated operating income before goodwill 8.4 12.4 3.9 47.0% amortization Consol
Slide 15: Overview of Results by Segment
Overview of Results for the First Nine Months of 2013 by Segment Operating Income (billions of yen) YoY change 2012 3Q* 2013 3Q Amount % Japanese Alcoholic 0.8 5.5 4.6 541.2% Beverages International 0.1 1.0 0.8 595.6% North America, other 1.4 2.3 0.9 67.0% Vietnam (1.3) (1.3) (0.0) ― Food & Soft Dri
Slide 16: Reference: 2013-2014 Management Targets
Reference: 2013-2014 Management Targets *2013-2014 management targets are unchanged from the figures announced on February 8, 2013. Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 16/27
Slide 17: 2013-2014 Management Targets
2013-2014 Management Targets Consolidated targets 2006 results 2012 results 2013 targets 2014 targets 2016 targets Consolidated net sales ¥435.0 bn ¥600.0 bn *incl. liquor taxes ¥492.4 bn ¥512.0 bn ¥533.0 bn (excl. liquor taxes) ¥294.0 bn ¥379.7 bn ¥397.3 bn ¥416.0 bn ¥450.0 bn Consolidated operatin
Slide 18: 2013-2014 Management Targets by Segment
2013-2014 Management Targets by Segment Targets 2012 results* 2013 targets 2014 targets Japanese Alcoholic Beverages ¥269.9 bn ¥275.2 bn ¥283.5 bn International Business ¥36.1 bn ¥43.3 bn ¥46.4 bn Food & Soft Drinks ¥129.0 bn ¥136.5 bn ¥145.5 bn Net sales Restaurants ¥26.6 bn ¥26.8 bn ¥28.2 bn Real
Slide 19: Reference: Supplementary Information to Results
Reference: Supplementary Information to Results for the First Nine Months of 2013 For information on the profitability of each business, please see the Supplementary Information to our Earnings Report. Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved. 19/27
Slide 20: Japanese Alcoholic Beverages
Japanese Alcoholic Beverages (billions of yen) YoY change Results highlights 2012 3Q 2013 3Q Amount % *Incl. liquor taxes Net sales increased year over year and total sales volumes for beer and beer-type beverages exceeded the previous year’s level, as Net sales* 192.2 195.3 3.1 1.6% sales volume of
Slide 21: International Business
International Business (billions of yen) YoY change Results highlights 2012 3Q 2013 3Q Amount % Net sales increased 37.6% year over year as a result of local Net sales 26.3 36.2 9.9 37.6% currency-based growth, mainly in North America, the impact of yen depreciation, and the addition of the Jan-Marc
Slide 22: Food & Soft Drinks (1)
Food & Soft Drinks (1) (billions of yen) YoY change Results highlights 2012 3Q 2013 3Q Amount % While domestic beverages sales declined due to the impact of integration preparations and the reduction in the number of Net sales 93.4 95.9 2.5 2.7% product items, overall sales increased with a net incr
Slide 23: Food & Soft Drinks (2)
Food & Soft Drinks (2) Key points in business plan: implementation status Soft Drinks (International): POKKA Corporation (Singapore) Pte Ltd Restaurants (Domestic): POKKA CREATE Co., Ltd. 1. Expand into countries neighboring Singapore 1. Accelerate opening of highly profitable outlets: new ¾ Market
Slide 24: Restaurants
Restaurants Results highlights (billions of yen) While net sales increased as cumulative sales at existing outlets YoY change exceeded the previous year’s level by 1%, operating income was at the same level as the previous year due to the significant impact of profit 2012 3Q 2013 3Q Amount % decline
Slide 25: Real Estate (1)
Real Estate (1) (billions of yen) YoY change Results highlights 2012 3Q 2013 3Q Amount % A stable revenue structure was maintained amid weakening of rent levels in the Tokyo metropolitan area office leasing Net sales 17.3 16.8 (0.4) (2.8%) market. Operating Key points in business plan: implementatio
Slide 26: Real Estate (2)
Real Estate (2) Overview of Real Estate Business ¾ The majority of operating income from the Real Estate business is from real estate leasing. – The property portfolio largely comprises properties in Tokyo (5 central wards: see previous page). – Unrealized gain on real estate for lease was ¥125.7 bi
Slide 27: To make people's lives richer and more enjoyable.
To make people’s lives richer and more enjoyable. The earnings forecasts and forward-looking statements appearing in this document were prepared by the SAPPORO Group based on currently available information and its best assessment of potential risks and uncertainties. Actual outcomes may differ mate