Sapporo Holdings Limited · TSE:2501
Sapporo — H1 2012 Earnings Presentation
28 slides from Sapporo's earnings presentation, Aug 8, 2012
Slide 1: Sapporo Group Business Results Presentation for the Six Months ended June 30, 2012
2012 Sapporo Group Business Results Presentation for the Six Months ended June 30, 2012 August 8, 2012 URL http://www.sapporoholdings.jp/english/ Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 1/28
Slide 2: Contents
Contents 1. Progress of Implementation of 2012 Basic Strategies 2. Overview of First-Half 2012 Results 3. Revision of 2012 Full-Year Earnings Forecasts Reference: Supplementary information to First-Half 2012 Results Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 2/28
Slide 3: 1. Progress of Implementation of 2012 Basic Strategies
1. Progress of Implementation of 2012 Basic Strategies Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 3/28
Slide 4: Progress of Implementation of 2012 Basic Strategies
Progress of Implementation of 2012 Basic Strategies We promoted three basic strategies for achieving dramatic growth Accept challenges leading to Create new growth Steadfastly implement growth in all businesses opportunities growth measures We will leverage the strengths of our To realize the fruits
Slide 5: Progress of Implementation of 2012 Basic Strategies
Progress of Implementation of 2012 Basic Strategies Steadfastly implement growth measures ¾ Steps for boosting the value of Yebisu Garden Place •Increased the stake in Yebisu Garden Place to 100% in March 2012; started implementing measures to boost its value towards its 20th anniversary in 2014. •T
Slide 6: Progress of Implementation of 2012 Basic Strategies
Progress of Implementation of 2012 Basic Strategies II. Steadfastly implement growth measures ¾ Progress in the business in Vietnam, where we made a full-scale entry •We entered the Vietnamese market at the end of February 2012 and launched full-scale marketing from April. Sales volume and exports t
Slide 7: Progress of Implementation of 2012 Strategic Investments
Progress of Implementation of 2012 Strategic Investments Implementation Status of Strategic Investments (incl. ordinary capex) Credit Ratings <Acquisition of stake in Silver Springs Citrus> <Announcement of the acquisition of 15% of trust beneficiary ¾ Acquired 51% of outstanding shares in Silver Sp
Slide 8: 2. Overview of First-Half 2012 Results
2. Overview of First-Half 2012 Results Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 8/28
Slide 9: Overview of First-Half 2012 Results -Special Factors-
Overview of First-Half 2012 Results -Special Factors- Breakdown of special factors does not allow meaningful comparisons between net sales and operating income for the first half of 2012 and the same period a year earlier See the Supplementary Information to our Earnings Report for factors behind ch
Slide 10: Overview of First-Half 2012 Results
Overview of First-Half 2012 Results 2011 2012 2012 YoY changes vs. Targets results results targets (amount, %) (amount, %) (billions of yen) See <Results Short of First-Half 2012 Targets Japanese Alcoholic 118.2 122.6 129.6 4.4 3.7% -6.9 -5.4% -Main Factors-> for comparison with the Beverages target
Slide 11: Results Short of First-Half 2012 Targets -Main Factors-
Results Short of First-Half 2012 Targets -Main Factors- Comparison with initial targets Highlights of the first-half results in comparison with (billion yen) the targets 2012 targets 2012 results Amount % Both net sales and operating income was short of the targets, as the impact of the pullback in
Slide 12: 3. Revision of 2012 Full-Year Earnings Forecasts
3. Revision of 2012 Full-Year Earnings Forecasts Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 12/28
Slide 13: Revision of 2012 Full-Year Forecasts
Revision of 2012 Full-Year Forecasts 2012 Comparison with (billions of yen) 2011 2012 initial YoY change revised initial targets results targets (amount, %) targets (amount, %) Japanese Alcoholic Beverages 268.1 277.5 288.0 9.3 3.5% -10.5 -3.6% See the following slides for major International 25.8 3
Slide 14: Revision of 2012 Full-Year Forecasts: Major Changes -Japanese Alcoholic Beverages-
Revision of 2012 Full-Year Forecasts: Major Changes -Japanese Alcoholic Beverages- 1. Change to full-year outlook of YoY comparison in general demand for beer- Revised full-year forecast highlight in taste beverages comparison with initial targets The beginning of 2012 reviewed on Aug 7 YoY comparis
Slide 15: Revision of 2012 Full-Year Forecasts: Major Changes -Food & Soft Drinks-
Revision of 2012 Full-Year Forecasts: Major Changes -Food & Soft Drinks (Sapporo Beverage, POKKA Group)- Revised full-year forecast highlight in 1. Change to full-year outlook of YoY comparison of general demand for beverages comparison with initial targets The beginning of 2012 reviewed on Aug 7 Yo
Slide 16: Reference: Supplementary information to First-Half 2012 Results
Reference: Supplementary information to First-Half 2012 Results *For information on each business’s profitability, please also see the Supplementary Information to our Earnings Report Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 16/28
Slide 17: Japanese Alcoholic Beverages (1)
Japanese Alcoholic Beverages (1) (billions of yen) Year-over-year changes Results highlights Sales increased reflecting strong sales of the three core brands *Incl. liquor taxes 2011 2012 Amount % and rebound from the direct impact of the earthquake. However, operating income declined due to increas
Slide 18: Japanese Alcoholic Beverages (2)
Japanese Alcoholic Beverages (2) Key points in business plan: implementation status 2. Laying the groundwork for growth in expanding areas 3. Expand sales of wine, western spirits and shochu Wine RTD-related actions <Sapporo’s first year of promoting Ready ¾ Both imported and Japanese wines achieved
Slide 19: International Business (1)
International Business (1) (billions of yen) Results highlights Year-over-year changes While yen appreciation erased gains primarily in North America, sales increased 27.8% YoY on the back of gains in 2011 2012 Amount % local currency terms and the addition of Silver Springs 59.9 Citrus’s results. O
Slide 20: International Business (2)
International Business(2) Key points in business plan: implementation status Developments in South Korea ¾We strengthened Sapporo brand value and sales structure in South 2. Expansion in Asian market (incl. Oceania Korea by acquiring a 15% stake in M’s Beverage Co., Ltd., a wholly Developments in Vi
Slide 21: Foods & Soft Drinks – Sapporo Beverage
Foods & Soft Drinks – Sapporo Beverage Results highlights (billions of yen) Sales volume declined to 90% of the previous year against a general demand rise to104%, partly due to the reversal of the Year-over-year changes surge in demand for Japanese drinking water following the *Figures after retroa
Slide 22: Food & Soft Drinks – POKKA Group (1)
Food & Soft Drinks – POKKA Group (1) Year-over-year changes (billions of yen) Results highlights Apr-Jun Jan-Jun Amount % 2011* 2012 New consolidation from April 2011 makes YoY comparisons meaningless, but comparisons based on reference figures below show that despite growth in Overseas Bev/Foods an
Slide 23: Food & Soft Drinks – POKKA Group (2)
Food & Soft Drinks – POKKA Group (2) Key points in business plan: implementation status Beverage & Food Business (Japan): POKKA Corp. and six group vending machine operators 1. Beverage Business ¾ Concentrating investments in core brands Kireto Lemon Re-launch of summer, spring products, airing of n
Slide 24: Food & Soft Drinks – POKKA Group (3)
Food & Soft Drinks – POKKA Group (3) Key points in business plan: implementation status Beverage & Food Business (Overseas): POKKA Singapore Restaurants Business (Domestic): POKKA CREATE Co., Ltd. 1. Expand into Singapore’s neighboring countries 1. Expand sales via growth at existing stores, introdu
Slide 25: Restaurants
Restaurants Results highlights (billions of yen) Year-over-year increase in sales in the Restaurant Business, which was directly affected by the Great East Japan Year-over-year changes Earthquake last year. Sales for the Jan-Jun period increased 7.6% YoY at existing 2011 2012 Amount % stores. In add
Slide 26: Real Estate (1)
Real Estate (1) (billions of yen) Year-over-year changes Results highlight Despite decline in real estate sales, sales and income rose 2011 2012 Amount % from March onwards as we acquired 15% trust beneficiary rights in Yebisu Garden Place. Maintaining stable revenues Net sales 11.0 11.2 0.2 1.9% de
Slide 27: Real Estate (2)
Real Estate (2) Overview of Real Estate Business ¾ Majority of the business’s operating income is from real estate leasing – Property portfolio largely comprises properties in Tokyo (5 central wards; see the previous slide) – Unrealized gains on properties for lease as of the end of December 2011 wa
Slide 28: 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