Takara Holdings Inc. · TSE:2531
Takara — Q2 FY2025 Earnings Presentation
58 slides from Takara's earnings presentation, Nov 12, 2024
Slide 1: Financial results for the Second Quarter Ended September 30, 2024
Financial results for the Second Quarter Ended September 30, 2024 November 12, 2024 Takara Holdings Inc.
Slide 2: Contents
Contents Ⅰ. Financial results for the six months ended September 30, 2024 Ⅱ. Business strategy for the fiscal year ending March 31, 2025 １．Takara Shuzo ２. Takara Shuzo Int’l Group Ⅲ. Financial forecasts for the fiscal year ending March 31, 2025 Ⅳ. Sustainability 2
Slide 3: Financial results for the six months ended September 30, 2024
Ⅰ. Financial results for the six months ended September 30, 2024
Slide 4: Takara Holdings (Consolidated) Financial Performance for Q2
Takara Holdings (Consolidated) Financial Performance for the Second Quarter Ended September 30, 2024 （Millions of Yen） Change from Compared to forecasts previous period ’25/3 2Q YOY (%) announced Actual on May, 2024 ・Net sales increased, while （％） Operating income and Ordinary income decreased. Net
Slide 5: Takara Shuzo Financial Performance for Q2
Takara Shuzo Financial Performance for the Second Quarter Ended September 30, 2024 （Millions of Yen） Change from ’25/3 2Q forecasts YOY (%) Actual announced on May, 2024（％） Net Sales 61,980 +1.3 +3.0 Takara Gross Profit 15,471 (3.1) (1.8) Shuzo Operating income 2,623 (33.6) (6.2) Compared to previou
Slide 6: Takara Shuzo Int'l Group Financial Performance for Q2
Takara Shuzo Int’l Group Financial Performance for the Second Quarter Ended September 30, 2024 （Millions of Yen） Change from ’25/3 2Q forecasts YOY (%) Actual announced on May, 2024（％） Net Sales 88,979 +15.3 +4.7 Takara Shuzo Int’l Gross Profit 28,874 ＋18.4 +4.6 Group Operating income 6,488 ＋3.7 (3.
Slide 7: Takara Bio Group Financial Performance for Q2
Takara Bio Group Financial Performance for the Second Quarter Ended September 30, 2024 （ Millions of Yen ） Change from ’25/3 2Q forecasts YOY (%) Actual announced on May, 2024（％） Net Sales 19,758 ＋3.4 (2.2) Takara Bio Gross Profit 12,445 (6.7) +1.2 Group Operating income 417 (70.4) ＋178.0 Compared t
Slide 8: Consolidated Statements of Cash Flows
Takara Holdings (Consolidated) Financial Performance for the Second Quarter Ended September 30, 2024 ◇Consolidated Statements of Cash Flows （Millions of Yen） '24/3 2Q '25/3 2Q Change Actual Actual cash flows from operating activities 14,922 6,207 (8,714) cash flows from investing activities (15,796)
Slide 9: Capital investment and sales of cross-shareholdings
Takara Holdings (consolidated) Financial Performance for the Second Quarter Ended September 30, 2024 ◇Main investment items ・Fushimi Plant: Update to the PET line ・Kusu Plant: Update to the Cubitainer line ・Expansion of warehouse functions in Spain Fushimi Plant ・Construction of the Center for Gene
Slide 10: Consolidated Balance Sheets
Takara Holdings (Consolidated) Financial Performance for the Second Quarter Ended September 30, 2024 ◇Consolidated Balance Sheets （Millions of Yen） '24/3 '25/3 2Q Change '24/3 '25/3 2Q Change Current assets 245,213 253,317 ＋8,103 Current liabilities 80,657 78,081 (2,575) Cash and deposits 95,085 95,
Slide 11: Business strategy for FY ending March 2025: Takara Shuzo
Ⅱ. Business strategy for the fiscal year ending March 31, 2025 １. Takara Shuzo
Slide 12: Change in Operating Income, Takara Shuzo, Year-on-year
Analysis of the Change in Operating income for the Second Quarter Ended September 30, 2024 (Takara Shuzo) <Year-on-year> Despite the effect of price revisions implemented in the previous fiscal year and other factors, gross profit shrank due to large cost increases partly stemming from exchange rate
Slide 13: Change in Operating Income, Takara Shuzo, vs forecasts
Analysis of the Change in Operating income for the Second Quarter Ended September 30, 2024 (Takara Shuzo) <vs forecasts on May> Although earnings were buoyed mainly by changes in sales composition, including increased demand anticipating the October 1 price revisions, gross profit declined as a resu
Slide 14: Takara Shuzo: Business Strategy basic policy
Takara Shuzo: Business Strategy for the fiscal year ended March 31, 2025 Basic We will engage in thorough brand development, raise profit policy margins, and expand Washu into global markets ●Strengthen product and brand development capabilities to substantially boost profit and profit margins ●Expa
Slide 15: Initiatives of Key Brand Development: sales performance
Initiatives of Key Brand Development Net sales and gross profit of key brands rose year on year by 9.6% and 3.9%, respectively, resulting from the targeted spending of advertising expenses for brand development in the first half. Both increases surpassed the first-half targets. ◆Sales performance of
Slide 16: Initiatives of Key Brand Development: progress of key brands
Initiatives of Key Brand Development Although the sales composition ratio of key brands exceeded the previous fiscal year’s level, gross profit margins dropped year on year. This was due to the impact of cost increases and a rise in sales of Shochu Highball, which has a lower profit margin among the
Slide 17: Key Brand Development: Sho Chiku Bai Shirakabegura MIO
Initiatives of Key Brand Development <Sho Chiku Bai Shirakabegura “MIO” Sparkling Sake> Sales in the first-half were 108% of the previous year’s level mainly due to the airing of TV commercials. MIO and MIO CLEAR and other limited-edition products will be released also in the second half to meet the
Slide 18: Key Brand Development: Takara Shochu Highball
Initiatives of Key Brand Development <Takara Shochu Highball> Sales in the first half were 108% of the previous year’s level mainly due to robust performance and increased demand anticipating price revisions. By continuing to run a BS program and using the fan website, we will secure loyal users, as
Slide 19: Key Brand Development: Takara Karakuchi Zero Ball
Initiatives of Key Brand Development <Takara Karakuchi Zero Ball > Sales in the first half were 116% of the previous year’s level mainly due to the effect of TV commercials. We will seek to acquire new users through BS TV commercials and digital sales promotion. ・<Karakuchi Zero Ball >Sales volume ●
Slide 20: Initiatives of Product Development: new brands
Initiatives of Product development ① New Unearth potential needs to provide a new and unprecedented brands quality of liquor and added value ●Second shot of new brand ・TaKaRa HAKKO JORYU SOUR launched on September 10 Creating a new dining-oriented market with a chu-hi brand that answers the needs of
Slide 21: Initiatives of Product Development: Sho Chiku Bai Mizuoto
Initiatives of Product development ② New A Japanese sake specifically created for mixing with soda water that offers a fruity brands aroma and a crisp taste, and provides the full satisfaction of drinking sake ●Third product of new brand ・Sho Chiku Bai <Mizuoto> 720ml released on October 1 A taste e
Slide 22: Business Strategy: Takara Shuzo Int'l Group
Ⅱ. Business Strategy for the fiscal year ending March 31, 2024 2. Takara Shuzo Int’l Group
Slide 23: 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 24: Market Environment: Alcoholic beverages exports
Market Environment: Growth of Export Market The total value of Japanese alcoholic beverage exports in 2023 fell from the previous year, but was 105.2% of the previous year’s level when excluding China, the areas in which significant decrease was seen. ◇ Trends in exports of Japan’s Alcoholic beverag
Slide 25: Change in Operating Income, Int'l Group, Year-on-year
Analysis of the Change in Operating Income for the Second Quarter Ended September 30, 2024 (Takara Shuzo Int’l Group)<Year-on-year> The increase in gross profit due to higher net sales offset increased personnel expenses and lease fees for trucks used for transportation as the Japanese food wholesal
Slide 26: Change in Operating Income, Int'l Group, vs forecasts
Analysis of the Change in Operating Income for the Second Quarter Ended September 30, 2024 (Takara Shuzo Int’l Group)<vs forecasts on May> Gross profit rose with an increase in net sales partly due to the exchange rate effects, but operating income fell short of expectations as a result of rising pe
Slide 27: Takara Shuzo Int'l Group: Business Strategy basic policy
Takara Shuzo Int’l Group: Business Strategy for the fiscal year ended March 31, 2025 We will achieve revenue growth for the whole Group through Basic the rapid growth of the Washu and Japanese food wholesale business policy and the stable growth of Western-style liquor business ●By making maximum us
Slide 28: Overseas Alcoholic Beverages Business (Washu): Business Strategy
Overseas Alcoholic Beverages Business (Washu) : Business Strategy for the fiscal year ended March 31, 2025 Overseas Alcoholic Beverages Business (Washu) Business We will aim for the rapid growth of the Washu business, maximizing Policy synergies between Takara Shuzo and overseas Group companies. ●”P
Slide 29: Washu: 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 30: Washu: Initiatives to expand exports (Sake)
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand exports (Sake) Sho Chiku Bai Shirakabegura Kimoto Junmai Muroka Himurochozo 2017 will be launched as a value-added Japanese sake answering the overseas market’s strong interest in storage and aged sake Takara Takara Shuzo Shuzo Int
Slide 31: Washu: Initiatives to expand exports (RTD)
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand exports (RTD) A new flavor will be added to Takara NIPPON CHU HI “Selected from Japanese Farm,” a chu-hi series sold exclusively overseas. Takara Takara Shuzo Shuzo Int’l Group A chu-hi lineup that offers the delightful taste of ca
Slide 32: Washu: Initiatives to expand Innovative SAKE
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand “Innovative SAKE” We are launching innovative sakes developed by Takara Sake USA Inc., leveraging our strength as a group with a base in the United States. Takara Takara Shuzo Shuzo Int’l Group 【MU|WA 【OCEAN VIEW（White Koji）】 （SAKE
Slide 33: Washu: Initiatives of MIO Brand Development
Overseas Alcoholic Beverages Business(Washu) : Initiatives of “MIO”Brand Development Export volume was 131% of the previous year’s level part due to the introduction of products exclusive to overseas. We will strengthen our information dissemination toward targeted customers in four key countries ma
Slide 34: Japanese Food Wholesale Business: Business Strategy
Japanese Food Wholesale Business : Business Strategy for the fiscal year ended March 31, 2025 Japanese Food Wholesale Business We will promote the diversification of sales channels, pioneer new Business areas, and develop and cultivate differentiated products to achieve policy rapid growth significa
Slide 35: Plans to expand locations in the U.S.
Japanese Food Wholesale Business : Plans to expand locations in the U.S. We plan to establish two new sales and distribution bases in the United States in 2025: in the southern city of Houston, Texas, and in Seattle, the largest city in Washington in the west. Expansion of North American bases to 15
Slide 36: Plans to expand locations in Europe
Japanese Food Wholesale Business : Plans to expand locations in Europe T. Tazaki & Company Ltd. (U.K.) acquired all shares of Agrica Ab, which operates food wholesale business in Porvoo, Finland in September 2024. Norway Sweden Finland Porvoo Agrica Ab Net sales(‘24/5): ・Our bases of Japanese food w
Slide 37: Expansion of high-value, differentiated products
Japanese Food Wholesale Business : Expansion of high-value, differentiated products We acquired all shares of TSUKIJI OHTA, a fresh fish wholesaler in Toyosu, Tokyo, and its export dealer Ohta Foods Market in September 2024 to supply high-quality fresh fish across the US. High quality fresh fish of
Slide 38: Product development to meet market needs
Japanese Food Wholesale Business : Product development to meet market needs We will expand differentiated products such as vegan foods, plant-based products, organic products, and high-quality wagyu beef. ●Expansion of differentiated products Vegan curry Arita beef from Miyazaki Fruit Fish Curry fre
Slide 39: Takara Shuzo Int'l Group: Number of accounts
Takara Shuzo Int’l Group Transaction of group company Japanese food trade is growing as a whole, not only for Japanese cuisine but also other cuisines such as Western, Asian, and fusion. ◆Number of accounts YOY (Mutual Trading Co. (LA and NY branch performance)) YOY Japanese 108％ Western 104％ Chines
Slide 40: 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. ●North America: Developing sales routes to American and Asian mass retailers ●Europe: Cultivating exis
Slide 41: Overseas Alcoholic Beverages Business (Western-style liquor)
Overseas Alcoholic Beverages Business (Western-style liquor) : Business Strategy for the fiscal year ended March 31, 2025 Overseas Alcoholic Beverages Business (Western-style liquor) Business We aim to boost the value of our brands, such as Tomatin policy and Blanton’s, and achieve stable earnings g
Slide 42: Financial forecasts for FY ending March 31, 2025
Ⅲ. Financial forecasts for the fiscal year ending March 31, 2025
Slide 43: Financial Forecasts: Consolidated Statements of Income
Takara Holdings (Consolidated) Financial Forecasts for the fiscal year ending March 31, 2025 (announced on May 10) Consolidated Statements of Income （Millions of Yen） Effect of change '25/3 Change from '24/3 in exchange rates on net sales Forecasts Change Change (%) Change Takara Shuzo 122,373 (1,41
Slide 44: Financial Forecasts for 2H: Consolidated Statements of Income
Takara Holdings (Consolidated) Financial Forecasts for the ’25/3 2H (Full-year minus 1H) Consolidated Statements of Income （Millions of Yen） '25/3 '24/3 Change from '24/3 Forecasts 2H Actual - 1H Actual Change Change (%) Takara Shuzo 62,595 60,392 (2,202) (3.5) Takara Shuzo International Group 83,26
Slide 45: Financial Targets Forecasts: ROE and ROIC
Takara Holdings (Consolidated) Financial Targets Forecasts for the fiscal year ending March 31, 2025 (announced on May 10) ‘25/3 forecasts ‘24/3 Actual Percentage of net sales from overseas operations 57.9％ 55.3％ (except for Takara Bio Group) （56.9％） （54.0％） ROE 7.3% 7.5％ Takara Holdings 5.2％ 4.8% T
Slide 46: Impact of Exchange Rate Fluctuations
Impact of Exchange Rate Fluctuations for the fiscal year ending March 31, 2025 Impact of exchange rate fluctuations will be insignificant for Takara Shuzo and Takara Shuzo Int’l Group in aggregate ◇Status of main exchange rates Previous Current Initial fiscal year fiscal year Difference results fore
Slide 47: Sustainability
IV. Sustainability
Slide 48: Selection for ESG indexes adopted by GPIF
Selection for ESG indexes adopted by GPIF As a result of being selected as a constituent stock of the "FTSE Blossom Japan Index," the company was selected for four of the six indexes adopted by GPIF (Government Pension Investment Fund). Selected institution Index Or not FTSE FTSE Blossom Japan Index
Slide 49: Responding to Climate Change
Enhance the value chain that supports resolving social issues ＜Responding to Climate Change＞ Promoting initiatives to utilize gas-fired boilers, adopt solar panels, and use CO₂-free electricity ＜Targets and Progress in ’24/3＞ ◇CO₂ Emissions target at Takara Shuzo ◇CO₂ emission reduction targets and
Slide 50: Resolve social issues through products and services
Resolve social issues through the business of providing products and services Promoting initiatives to reduce food waste through utilization of unused parts of fruit ●「TaKaRa CRAFT」 ●TaKaRa HAKKO JORYU SOUR ＜Kyo Lemon＞ <Clear> <lemon> <grape> ・ These products use “fermented peel spirits,” ・ Instead
Slide 51: Smiles in Life
Smiles in Life ～Smiles are Life’s Treasures ～ We will progressively achieve our vision of “Smiles in Life ~ Smiles are Life’s Treasures ~” by contributing to a well-balanced diet for people around the world through Washu and Japanese food, and by supporting healthy lifestyles through our biomedical
Slide 52: Appendix
Appendix ’25/3 1H Takara Shuzo Actual Takara Shuzo Int’l Group Profit and loss Takara Shuzo statement ‘25/3 Forecasts Takara Shuzo Int’l Group ‘25/3 Takara Shuzo Int’l Group Major Sales and operating 1H Actual Subsidiaries income Forecasts
Slide 53: Takara Shuzo Financial Performance: Statements of Income
Takara Shuzo Financial Performance for the Second Quarter Ended September 30, 2024 Statements of Income (Net sales ~ Operating income) （ Millions of Yen ） Change from forecasts announced '25/3 2Q Change from '24/3 on May, 2024 Actual Change YOY(%) Change Change(%) Shochu 16,926 (543) (3.1) 785 ＋4.9
Slide 54: Takara Shuzo Int'l Group Financial Performance: Statements of Income
Takara Shuzo Int’l Group Financial Performance for the Second Quarter Ended September 30, 2024 Statements of Income (Net sales ~ Operating income) （ Millions of Yen ） Effect of change Change from forecasts announced '25/3 2Q Change from '24/3 on May, 2024 in exchange rates on net sales Actual Change
Slide 55: Takara Shuzo Financial Forecasts: Statements of Income
Takara Shuzo Financial Forecasts for the fiscal year ending March 31, 2025 (announced on May 10) Statements of Income (Net sales ~ Operating income) （ Millions of Yen ） '25/3 Change from '24/3 Forecasts Change Change (%) Shochu 31,278 (3,046) (8.9) Sake 11,676 127 ＋1.1 Light-alcohol refreshers 44,54
Slide 56: Takara Shuzo Int'l Group Financial Forecasts: Statements of Income
Takara Shuzo Int’l Group Financial Forecasts for the fiscal year ending March 31, 2025 (announced on May 10) Statements of Income (Net sales ~ Operating income) （ Millions of Yen ） Effect of change '25/3 Change from '24/3 in exchange rates on net sales Forecasts Change Change (%) Change Overseas Alc
Slide 57: Takara Shuzo Int'l Group Major Subsidiaries Financial Performance
Takara Shuzo Int’l Group Major Subsidiaries Financial Performance for ‘25/3 1H and Financial forecasts for the fiscal year ending March 31, 2025 24/3 2Q Actual 25/3 Forecasts Operating Operating Net Sales Net Sales income(loss) income(loss) Takara Sake USA Inc. Thousands of US dollar 23,503 2,966 48
Slide 58: 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