Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Daiwa Investment Conference Tokyo 2013
24 slides from Kirin's conference presentation, Mar 6, 2013
Slide 1: Increase shareholder value through organic growth
Increase shareholder value through organic growth Daiwa Investment Conference Tokyo 2013 March 6, 2013 Senji Miyake President and CEO Kirin Holdings Company, Limited 1
Slide 2: Agenda
Agenda Long-term business outlook KV2021, FY2013-2015 Medium-term Business Plan 2013 business approach Q&A 2
Slide 3: KV2021, FY2013-2015 Medium-term Business Plan
KV2021 KV2021,, FY2013 -2015 Medium FY2013-2015 -term Business Plan Medium-term 3
Slide 4: Well-balanced, global business portfolio
Well-balanced, global business portfolio Others Pharmaceuticals Japan and Bio-chemicals integrated beverages 28％ Operating Income 36％ (Prior to goodwill amortization: 2012) Overseas integrated beverages Emerging 33％ ～High growth～ Emerging Developed ～Large scale ～Stable ・High profitability～ ・High gro
Slide 5: Building on KV2015 towards a new stage
Building on KV2015 towards a new stage; generate steady, strong results Moving Forward 2019-2021 2016-2018 Stepping Out 2013-2015 2010-2012 2007-2009 KV2015 KV2021 Secured overseas integrated Grow Japan integrated beverages beverages business foundation business Strengthened cost competitivene
Slide 6: KV2021 Business model
KV2021 Business model Sustainably increase enterprise value through organic growth ～Leverage diversity and co-create brand value with consumers and communities～ Organic Pursue organic growth within the areas developed under KV2015 High value Produce strong results and increase enterprise value Susta
Slide 7: Growth strategy / 2013-2015 MTBP
Growth strategy / 2013-2015 MTBP Organic Three-year shift to organic growth Overseas integrated beverage business, the driver of Group growth, work to strengthen the core elements of the Japan integrated beverage business Generate stable cash flow Target: Mid single-digit CAGR in normalized EBITDA*
Slide 8: Financial strategy / 2013-2015 MTBP
Financial strategy / 2013-2015 MTBP Enhance shareholder returns Steadily reduce debt and increase financial flexibility <Cash flow during 2013MTBP> Enhance returns to Operating Cash Flow shareholders ¥700bn plus Increase dividends in line with growth in normalized EPS Consolidated payout ratio
Slide 9: Plan for 2013
Plan for 2013 9
Slide 10: 2013 basic policy: First year in shift to organic growth
2013 basic policy: First year in shift to organic growth Realize overall Group sales and profit growth by building on overseas growth and focusing on restoring growth in Japan MTBP quantitative targets 2013 Target Mid single-digit CAGR in normalized EBITDA* 316.0 billion yen (up 2.8% YoY) High singl
Slide 11: FY2013 financial strategies
FY2013 financial strategies Allocate free cash flow in accordance with MTBP 2013-2015 financial policy Operating Enhance returns to OperatingCash cashFlow flow shareholders ¥220.0bn Planned annual dividend of ¥36 per share (up ¥7) Consider responsive returns FCF to shareholders, including Investme
Slide 12: Further enhance shareholder returns
Further enhance shareholder returns Changes in dividend per share 2013-2015 2013-2015 （¥） Medium-term Medium-term Plan Plan Increase dividends in line with growth in normalized EPS Consolidated payout ratio of 30% Additional returns to shareholders, including share buybacks, will also be considere
Slide 13: Japan integrated beverages business: Further growth through fostering strong brands
Japan integrated beverages business: Further growth through fostering strong brands New business structure (From Jan. 2013) Kirin Alcoholic beverages Soft drinks Kirin Brewery Mercian Kirin Beverage Optimize resource allocation beyond alcohol and soft drinks framework Pursue brand-centered managem
Slide 14: Beer is fun
New brand communication Kirin Ichiban draft beer Communication theme is to spread the pleasure and enjoyment of beer Strengthen partnerships Advertising Sensory Beer is fun 2012 ~ Topical 2013 ~ Kirin Ichiban Two-tone beer 14
Slide 15: Active investment in core brands and growth categories
Active investment in core brands and growth categories Beer Happo-shu Active investment in core brands. Creation and establishment of new categories Non-alcohol New genre RTD World’s first tokuho cola February 20 May 14 May 22 May 8 New offerings in growth 2011~ 2011~ 2012~ categories 15
Slide 16: Further strengthen cost competitiveness
Further strengthen cost competitiveness 2010-2012 Medium-term Business Plan 2013-2015 Medium-term Business Plan Created cross-group cost synergies Under the new management structure we will continue measures Greatly exceeded projections to improve cost competitiveness Original projection over ¥20 bi
Slide 17: Japan integrated beverages business: 2013 plan
Japan integrated beverages business: 2013 plan 2012 Started work towards resumption of growth. Success in creating new customer value. 2013 Through stronger brands and cost competitiveness set ourselves on a trajectory for resuming growth Strengthening Strengthening Activate market through co-crea
Slide 18: Lion: 2013 Plan
Lion : 2013 Plan 2012 Lion became the leading brewer in the Australian beer market Improved profitability of soft drinks business through continued earnings structure reforms 2013 Turned around sales and accelerated earnings growth by strengthening high added value, high growth categories Alcohol Al
Slide 19: Brasil Kirin
— BOLEZERA irin Brasil K a BRASIL I THE POWER OF RESPECT 19
Slide 20: Brasil Kirin: 2013 Plan
Brasil Kirin: 2013 Plan 2012 Achieved first-year targets for sales volume, sales revenue and profit, and made a good start to achieve medium-term growth 2013 Move to the next stage: Expand profits through strategic investment in facilities and brands Growth linked to the market Market Market outlo
Slide 21: Southeast Asia and China
Southeast Asia and China Kirin (China) Investment China Resources Kirin Beverages (Greater China) Company Interfood (Vietnam) Siam Kirin Beverage (Thailand) Kirin Holdings Singapore (Indonesia) Begin test-marketing of San Miguel Brewery (Philippines) Kirin Gogo-no-Kocha Tea Break Philippines Maintai
Slide 22: Kyowa Hakko Kirin: Basic strategy of MTBP 2013-2015
Kyowa Hakko Kirin Basic strategy of MTBP 2013-2015 Further strengthen competitiveness in Japan through our category-based strategy - Implement product portfolio management in each category from R&D to S&M - Realize sustainable growth while enhancing productivity Expand our business base in the U
Slide 23: From CSR to CSV
From CSR to CSV In support of Kirin’s brand-centered management approach—through which Kirin aims to deepen engagement with stakeholders and take its CSR activities to the next level—Kirin is adopting a CSV approach to business. With CSV, Kirin aims to create value together with a wide range of stak
Slide 24: This material is intended for informational purposes only
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