Sapporo Holdings Limited · TSE:2501
Sapporo — H1 2011 Earnings Presentation
27 slides from Sapporo's earnings presentation, Aug 1, 2011
Slide 1: Sapporo Group Business Results Presentation for the Six Months ended June 30, 2011
2011 Sapporo Group Business Results Presentation for the Six Months ended June 30, 2011 August 1, 2011 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2011SAPPORO HOLDINGS LTD. All rights reserved. 1/27
Slide 2: Contents
Contents 1． Overview of First-Half 2011 Business Results 2． Operating Results by Segment 3. Growth Strategies and Future Policies 4. 2011 Full-Year Earnings Forecasts ※These materials contain forward-looking statements that are based on information available when the materials were prepared and are
Slide 3: 1. Overview of First-Half 2011 Business Results
1. 1.Overview Overviewof ofFirst-Half First-Half2011 2011Business BusinessResults Results Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 3/27
Slide 4: Overview of First-Half 2011 Results – Consolidated
Overview of First-Half 2011 Results – Consolidated 1H sales rose sharply as gains at the Soft Drinks Business and the consolidation of the POKKA Group compensated for declines at the Japanese Alcoholic Beverage and Restaurants businesses, partially due to impact of the Great East Japan Earthquake. O
Slide 5: Overview of First-Half 2011 Results – By Segment
Overview of First-Half 2011 Results – By Segment Excluding the Restaurants Business, which was hurt by the disaster, and the International Alcoholic Beverages Business, which made a ¥0.4 bn investment in its Vietnam operations during the term, all other segments posted YoY gains. Income gains were s
Slide 6: Overview of First-Half 2011 Results –Trends–
Overview of First-Half 2011 Results –Trends– Sharp gains in both operating and ordinary income. Earnings remain on growth trajectory, with surplus achieved in 1H for fourth straight year. Trends Trendsfor forOperating Operatingand andOrdinary OrdinaryIncome Income billions of yen 2007 2008※1 2009※2
Slide 7: Overview of First-Quarter 2011 Results – Earthquake's Impact
Overview of First-Quarter 2011 Results – Earthquake’s Impact Breakdown ※Reference Breakdownof of¥4.6 ¥4.6bn bnin inquake-related quake-related ※Reference extraordinary Breakdown Breakdownof of¥5 ¥5bn bnin inquake-related quake-relatedextraordinary extraordinary losses takenin losses taken in1H 1H ex
Slide 8: 2. Operating Results by Segment
2. 2. Operating OperatingResults Resultsby bySegment Segment ※Please refer to the Supplementary Information for more details on each business’s profitability Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 8/27
Slide 9: 1H Results: Japanese Alcoholic Beverage Business (1)
1H Results: Japanese Alcoholic Beverage Business (1) (billions of yen except Year-over-year changes Results percentages) Resultshighlights highlights 2010 2011 Amount % Sales down on Earthquake impact. Operating income improves by ¥0.2 bn on Net sales 125.9 118.2 (7.7) (6.2)% lower capital investmen
Slide 10: 1H Results: Japanese Alcoholic Beverage Business (2)
1H Results: Japanese Alcoholic Beverage Business (2) Key Announcements Announcementsin in1H 1Hof ofnew newmoves movestoward towardgrowth growthin Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status in expanding areas expanding areas 3. Strengthening operating
Slide 11: 1H Results: Japanese Alcoholic Beverage Business (3)
1H Results: Japanese Alcoholic Beverage Business (3) Shipment growth at core brands Yebisu, Sapporo Draft Beer Black Label and Mugi to Hop has beaten trend for total demand since April but concentration on core brands following earthquake has resulted in shipments of Sapporo beer, happoshu, and new-
Slide 12: 1H Results: International Alcoholic Beverages (1)
1H Results: International Alcoholic Beverages (1) (billions of yen, except percentages) Results Resultshighlights highlights Year-over-year changes Yen appreciation wiped out strong gains in local currency terms, especially in North America, 2010 2011 Amount % keeping segment sales flat YoY in yen t
Slide 13: 1H Results: International Alcoholic Beverages (2)
1H Results: International Alcoholic Beverages (2) Key Keypoint pointin inbusiness businessplan: plan:implementation implementationstatus status Expansion in Asian market (incl. Oceania) Developments in South Korea Developments in Vietnam ¾ Started sales of imported beer to household and commercial m
Slide 14: 1H Results: Soft Drinks
1H Results: Soft Drinks (billions of yen, except Results Resultshighlights highlights percentages) Achieved large YoY sales increase in 1H despite impact Year-over-year changes of earthquake and flat industrywide demand Soft drinks monthly unit sales growth in 2011 (YoY) 2010 2011 Amount % 115 ％ Sap
Slide 15: POKKA CORPORATION 1H results (1) newly consolidated
POKKA CORPORATION 1H results（1）newly consolidated (billions of yen, Year-over-year changes Results Resultshighlights highlights except percentages) New consolidation makes previous year comparisons meaningless, but a 2010 2011 Amount % comparison based on figures below shows POKKA sales up by ¥0.4 b
Slide 16: POKKA CORPORATION 1H results (2) newly consolidated
POKKA CORPORATION 1H results（2）newly consolidated Key Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status Beverages & Foods Business (Japan): POKKA Corp. Beverages & Foods Business (Japan): 6 vending machine operators １．Beverages Business ¾ Concentrating inves
Slide 17: POKKA CORPORATION 1H results (3) newly consolidated
POKKA CORPORATION 1H results（3）newly consolidated Key Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status Beverages & Foods Business (Overseas): POKKA Singapore Restaurants Business (Domestic): POKKA CREATE Co.,Ltd. Shift in lunar new year led to quiet month i
Slide 18: 1H Results: Restaurants
1H Results: Restaurants (billions of yen, except percentages) Results Resultshighlights highlights Year-over-year changes Consumer spending dropped sharply after the Great East Japan 2010 2011 Amount % Earthquake. While consumer spend has been recovering more recently, the business environment remai
Slide 19: 1H Results: Real Estate (1)
1H Results: Real Estate (1) (billions of yen, except percentages) Results Year-over-year changes Resultshighlights highlights 2010 2011 Amount % Maintaining stable revenues despite continued downturn in rents in Tokyo office leasing market Net sales 11.3 11.0 (0.2) (2.5)% Key Operating Keypoint poin
Slide 20: 1H Results: Real Estate (2)
1H Results: Real Estate (2) Impact Impactof ofGreat GreatEast EastJapan JapanEarthquake; Earthquake;status statusof of Overview Overviewof ofReal RealEstate EstateBusiness Business restoration efforts restoration efforts ¾ Majority of the business’s operating income is from real estate leasing ¾ Som
Slide 21: 3. Growth Strategies and Future Policies
3. 3.Growth GrowthStrategies Strategiesand andFuture FuturePolicies Policies Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 21/27
Slide 22: Growth Strategy and Future Policies
Growth Strategy and Future Policies Strategic StrategicInvestments Investmentsduring during1H 1H Direction Directionof ofLong-Term Long-TermStrategic StrategicInvestments Investments Additional acquisition of shares in conjunction with integration with POKKA CORPORATION ¾ Acquired an additional 65.3
Slide 23: 4. 2011 Full-Year Earnings Forecasts
4. 4.2011 2011Full-Year Full-YearEarnings EarningsForecasts Forecasts ※Please also refer to our June 30 news release “Supplementary Information on Consolidated Earnings” Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 23/27
Slide 24: 2011 Consolidated Earnings Forecasts (vs initial plan)
2011 Consolidated Earnings Forecasts (vs initial plan) We estimate the impact of the Great East Japan Earthquake will keep sales of the Japanese Alcoholic Beverages and Restaurants businesses below initial targets. Operating income should be supported by higher income at the Soft Drinks Business, th
Slide 25: 2011 Operating Income Forecasts (vs initial plan) by Segment
2011 Operating Income Forecasts (vs initial plan) by Segment Although we expect lower earnings at the Restaurants and Real Estate businesses, we maintain our initial target for consolidated operating income on expected increases to profits from the Soft Drinks Business and the POKKA Group. Extraordi
Slide 26: 2011 Consolidated Earnings Forecasts (vs 2010)
2011 Consolidated Earnings Forecasts (vs 2010) We expect consolidated sales to rise as positive contributions from the International Alcoholic Beverages and Soft Drinks combine with the consolidation of the POKKA Group to offset disaster-induced earnings declines at the Japanese Alcoholic Beverages
Slide 27: 2011 Operating Income Forecasts (vs 2010) by Segment
2011 Operating Income Forecasts (vs 2010) by Segment In addition to the consolidation of the POKKA Group, we expect positive contributions to operating income from all segments except International Alcoholic Beverages, where earnings will be weighed down by investments in Vietnam, and Soft Drinks, w