Asahi Group Holdings Ltd · TSE:2502
Asahi — Asahi Breweries — FY2005 Earnings Presentation
20 slides from Asahi's earnings presentation, Feb 13, 2006
Slide 1: 2005 Results Overview & 2006 Earnings Forecasts
2006 Group Business Strategy 2005 2005Results ResultsOverview Overview&&2006 2006Earnings EarningsForecasts Forecasts February 13, 2006 URL http://www.asahibeer.co.jp
Slide 2: Overview of Group Operations and 2006 Business Strategy
Overview of Group Operations and 2006 Business Strategy
Slide 3: 2005 Results Overview (consolidated)
2005 Results Overview (consolidated) ■ 2005 Results (consolidated) （Billions of yen） （Billions of yen） 15000 1500 2005 (Jan-Dec） Net sales 2004 YoY (%) 14000 1400 Asahi Breweries 1,054.2 1,116.4 -62.2 (-5.6%) Asahi Soft Drinks 225.1 204.0 21.1 (10.4%) 1300 13000 Asahi Food & Healthcare 26.8 22.3 4.5
Slide 4: 2005 Overview by Business
2005 Overview by Business Business policy for 2005: Pursue a “Three-pronged Growth” strategy – Domestic alcohol business・Group business・Overseas business ◆Domestic Alcohol Business ■Appeal “freshness” of Super Dry and promote the “Umai Tarunama （tasty kegged beer) Project” → insufficient to revitali
Slide 5: 2006 Full-year Forecasts (consolidated)
2006 Full-year Forecasts (consolidated) ■ 2006 Full-year Forecasts (consolidated) （Billions of yen） （Billions of yen） 16000 1600 2006 Forecast (Jan-Dec） Net sales 2005 YoY (%) 15000 1500 Asahi Breweries 1,095.0 1,054.2 40.8 (3.9%) 1400 14000 Asahi Soft Drinks 232.0 225.1 6.9 (3.0%) 1300 13000 Operat
Slide 6: Second Medium-term Plan: Progress of achieving numerical targets
Second Medium-term Plan: Progress of achieving numerical targets ■Progress to Date vs Medium-term Numerical Targets （Bilions of yen） 2003 2006 Plan 2006 mid-term targets ■Operating Margin （Mid-term target:7%） vs 2003 vs 2003 8 （％） Alcoholic beverages 1,107.0 1,095.0 -12.0 1,200.0 93.0 7 7.0 Soft dri
Slide 7: 2006 Strategies by Business
2006 Strategies by Business Business policy for 2006: Establish solid earnings foundation and diversified growth structure to complete reforms 【Strategies for Existing Businesses】 ◆Domestic Alcohol Business ◎Concentrate management resources into the core beer category to rebuild growth foundation fo
Slide 8: Progress of Business Structure Reforms and Future Policies
Progress of “Business Structure Reforms” and Future Policies ◆M&A/Strategic Business Investment (Total budget under medium-term plan : ¥100bn) 2004: 2004: Established Established TAI TAI Beverages Beverages (joint (joint venture venture with with Tingyi); Tingyi); converted converted Haitai Haitai B
Slide 9: Progress of Earnings Structure Reforms and Future Policies
Progress of “Earnings Structure Reforms” and Future Policies ◆Enhance Cost Competitiveness ■Alcoholic beverages： Promote faster improvement in efficiency relative to the three-year medium- term cost reduction plan (¥14bn) (Reduction of production/distribution costs and fixed costs related to personn
Slide 10: Progress of Shareholder Return Policy and Future Policies
Progress of “Shareholder Return Policy” and Future Policies ◆Increase Returns to Shareholders (Guideline value for medium-term returns : ¥60bn) ■Net Profits and Gross Returns to Shareholders （Billions of yen） 2004：Dividend 2004 increase (from ¥13 to ¥15 per share) 500 50 自己株取得 Acquisition of own sha
Slide 11: Reduction in Financial Liabilities and Future Policy
“Reduction in Financial Liabilities” and Future Policy ◆Reduction of Financial Liabilities (Guideline value for medium-term reduction ：¥40bn) 2004: ¥33.2bn reduction (¥336.3bn⇒¥303.1bn） 2005: ¥13.9bn reduction (¥303.1bn⇒¥289.2bn) 2006: ¥5.8bn increase (¥289.2bn⇒¥295.0bn) （Billions of yen） 6,000 600
Slide 12: 2006 Strategies by Category: Alcoholic Beverage Business
Alcoholic Beverage Business 2006 Strategies by Category
Slide 13: Beer Category 2005 Overview
Beer Category 2005 Overview ◆ Beer Category Taxable Volume 【Industry Overall】 （Millions of cases） Industry Overall 2005 (Jan-Dec) Cases YoY (%) Breakdown (% change) Beer 282.34 -24.22 (-7.9%) 56.4% (-2.9%) Happoshu (low-malt beer) 139.26 -46.00 (-24.8%) 27.8% (-8.0%) New genre (no-malt beer) 79.42 5
Slide 14: Beer Category 2006 Sales Plan
Beer Category 2006 Sales Plan ■ 2006 Market Outlook ◆ Beer ： roughly 1% decline ◆ Happoshu ： roughly 8% decline Market Total: roughly 1% decline overall ◆ New genre ： roughly 14% growth ■ Beer/Happoshu/New Genre: Sales Plan （Millions of cases） 2006 Targets 2005 YoY Super Dry 137.90 135.80 +1.5% Othe
Slide 15: Beer: Future Efforts Super Dry
Beer: Future Efforts Super Dry ●Product rollout：Carry out monthly promotion of “Super Dry Freshness Pack” featuring its freshness ●Boost commercial sales through the “Umai Tarunama (tasty kegged beer) Project ”* and implement in-store sales campaigns at volume retailers and companywide sales activit
Slide 16: Happoshu/New Genre: Future Efforts Honnama/Shinnama 3
Happoshu/New Genre: Future Efforts Honnama/Shinnama 3 ●Reinforce three Honnama brands ◆Improve quality to enhance their brand image as happoshu with taste of real draft beer (from the end of January) ◆Implement advertising campaigns that covey the sense of casualness and happiness ●Cultivate Shinnam
Slide 17: Other Alcohol Business: 2005 Overview
Other Alcohol Business: 2005 Overview ◆Other Alcohol Business 2005 Sales （Billions of yen） Sales (Jan-Dec) Overall Market 2005 2004 YoY (%) (Company Estimate) Shochu 55.1 51.8 3.3 (6.4%) +1% Low-alcohol drinks 32.1 28.3 3.7 (13.1%) +5% Spirits 28.2 29.5 -1.3 (-4.4%) -2% Wine 15.1 14.4 0.7 (4.7%) -3%
Slide 18: Other Alcohol Business: 2006 Efforts
Other Alcohol Business： 2006 Efforts Other Alcohol Business Sales Target: ¥144.6bn (Up 8.4% YoY) ●Sales ●Sales target: target: ¥60.1bn ¥60.1bn (up (up 9.1% 9.1% YoY) YoY) ・Foster ・Foster Kanoka Kanoka into into aa major major brand, brand, with with aa shipment shipment target target of of 3.3mn 3.3
Slide 19: Alcoholic Beverage Business: Marketing Costs
Alcoholic Beverage Business: Marketing Costs ■Sales Promotion Expenses by Category （Billions of yen） 2001 2002 2003 2004 2005 2006 Plan YoY YoY Beer 75.4 66.0 60.3 58.0 54.9 -3.1 57.7 2.8 Happoshu (low-malt) 15.8 19.6 20.5 20.4 12.2 -8.2 10.4 -1.8 New genre (no-malt) － － － － 9.2 9.2 7.1 -2.1 Beer/Ha
Slide 20: Information in this material is not intended to solicit sales or purchases of Asahi
Information in this material is not intended to solicit sales or purchases of Asahi Breweries stock shares. The comments and estimates in this document are based on the company’s judgment at the time of publication and their accuracy is not guaranteed. They are subject to change without notice in th