Sapporo Holdings Limited · TSE:2501

Sapporo — FY2011 Earnings Presentation

50 slides from Sapporo's earnings presentation, Feb 13, 2012

  1. Slide 1: Sapporo Group Business Results Presentation for FY2011

    Sapporo Group Business Results Presentation for FY2011 February 13, 2012 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 1/50

  2. Slide 2: Contents

    Contents 1. Sapporo Group Management Plan 2012-2013 ◇Overview of 2011 Results ･Overview of 2011 Results ･Supplementary Information to 2011 Results ◇Sapporo Group Management Plan 2012-2013 ･Management Targets ･Basic Strategies ･Business Plans ･Returning Profit to Shareholders 2. 2011 Financial Result

  3. Slide 3: Sapporo Group Management Plan 2012-2013

    Sapporo Group Management Plan 2012-2013 - Start of New Group Management Structure toward Dynamic Growth - February 10, 2012 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 3/50

  4. Slide 4: Overview of 2011 Results

    Overview Overview of of 2011 2011 Results Results Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 4/50

  5. Slide 5: Progress of 2011 Basic Strategy

    Progress of 2011 Basic Strategy We promoted three basic strategies for the first year in the period for solidifying our growth trajectory I. Growth in new areas II. Growth in all businesses III. Bolster management capabilities that underpin growth We will pursue definitive results Harnessing the str

  6. Slide 6: Overview of 2011 Results –Consolidated-

    Overview of 2011 Results –Consolidated- Y-o-Y changes (billions of yen) 2010 results 2011 results (Amount/%) Japanese Alcoholic Steady growth in terms of operating Beverages 279.3 268.1 (11.1) -4.0% International Alcoholic and ordinary income Beverages 25.3 25.8 0.5 2.0%  Net sales increased: Soft

  7. Slide 7: Overview of 2011 Results - Trends -

    Overview of 2011 Results - Trends - Steady growth in operating income before goodwill amortization and ordinary income. Profits growth trend intact even after excluding the contributions from the consolidation of POKKA Group Ordinary income rose for the fifth straight year 25.0 Trends in operating i

  8. Slide 8: Overview of 2011 Results - Strategic Investments -

    Overview of 2011 Results - Strategic Investments - Strategic StrategicInvestments Investments Credit CreditRatings Ratings Acquisition of shares related to integration of POKKA Corporation Raising of credit ratings by JCR  Acquired additional shares on March 29, making POKKA Group a consolidated 

  9. Slide 9: Overview of 2011 Results -Results vs. Targets-

    Overview of 2011 Results -Results vs. Targets- 2011 revised vs. Targets 2011 results billions of yen target (Amount/%) Steady growth in terms of operating Japanese Alcoholic 271.7 268.1 (3.5) -1.3% Beverages and ordinary income International Alcoholic 29.2 25.8 (3.3) -11.3% Beverages Net sales: Una

  10. Slide 10: Management Indices, Disclosure of Real Estate Leasing Asset Prices

    Overview of 2011 Results - Management Indices, Disclosure of Real Estate Leasing Asset Prices - Management Indices vs. Targets and Previous Year Results vs. Targets 2010 vs. 2011 Results 2011 revised 2011 results Change 2010 results 2011 results Change targets Operating margin (excl. liquor taxes, b

  11. Slide 11: Supplementary Information to 2011 Results

    Supplementary Supplementary Information Information to to 2011 2011 Results Results *For information on each business’s profitability, please also see the Supplementary Information to our Earnings Report Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 11/50

  12. Slide 12: Japanese Alcoholic Beverages (1)

    Japanese Alcoholic Beverages (1) (billions of yen) Year-over-year changes Results Resultshighlights highlights 2010 2011 Amount % “ incl. liquor taxes Sales down on earthquake impact. Net sales* 279.3 268.1 (11.1) -4.0% Operating income rose with lower capital Operating investment and other cost red

  13. Slide 13: Japanese Alcoholic Beverages (2)

    Japanese Alcoholic Beverages (2) Key Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status 2. Positioning for growth in expanding areas Non-alcohol beer market initiatives Low-alcohol beer segment initiatives  March 16: launched Premium Alcohol Free  Feb: Laun

  14. Slide 14: Japanese Alcoholic Beverages (3)

    Japanese Alcoholic Beverages (3) Moves Movestoward towardgrowth growthin inexpanding expandingareas areasduring during2011 2011 Wine Spirits  Both imported and Japanese wines achieved year-on-year volume  Signed sales agreement with major Korean foods maker CJ Group growth and increased sales and

  15. Slide 15: International Alcoholic Beverages (1)

    International Alcoholic Beverages (1) billions of yen Results Resultshighlights highlights Year-over-year changes Sales rose 2% YoY, as yen appreciation erased gains in local currency terms, especially in North 2010 2011 Amount % America. Operating income fell as the ¥0.5 bn rise in profits Net sale

  16. Slide 16: International Alcoholic Beverages (2)

    International Alcoholic Beverages (2) Key Developments in South Korea Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status  Started sales of imported beer to household and commercial 2. Expansion in Asian market (incl. Oceania) markets with cooperation of part

  17. Slide 17: Soft Drinks

    Soft Drinks billions of yen Results Resultshighlights highlights While overall domestic market struggled to match 2010 volumes Year-over-year changes prompted by the hot summer, we achieved strong growth of 4% in YoY sales on the back of the rise in demand following the earthquake. Goodwill amortiza

  18. Slide 18: POKKA Group (1) [Consolidated from 2Q]

    POKKA Group (1) [Consolidated from 2Q] Year-over-year changes billions of yen Results Resultshighlights highlights 2011 2010 Amount % (Apr-Dec)※ New consolidation makes YoY comparisons meaningless, but comparisons based on figures below shows POKKA sales up in all segments except Overseas Beverages

  19. Slide 19: POKKA Group (2) [Consolidated from 2Q]

    POKKA Group (2) [Consolidated from 2Q] Key Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status Beverages & Food Business (Japan): POKKA Corp. and six group vending machine operators 1. Beverages Business  Concentrating investments in core brands Kireto Lemon

  20. Slide 20: Pokka Group (3) [consolidated from 2Q]

    Pokka Group (3) [consolidated from 2Q] 事業計画のポイント：取組状況 Key points pointsin inbusiness 事業計画のポイント：取組状況 Key businessplan: plan:implementation implementationstatus status ■Beverages & Foods Business (Overseas): POKKA Singapore ■Restaurants Business (Domestic): POKKA CREATE Co., Ltd. 1. Expand sales via g

  21. Slide 21: Restaurants

    Restaurants Results Resultshighlight highlight (billions of yen) Consumer spending dropped sharply after the Great East Japan Year-over-year changes Earthquake. Although consumer spending in recovering, the business environment remains highly competitive. 2010 2011 Amount % Decline in comparable sto

  22. Slide 22: Real Estate (1)

    Real Estate (1) (billions of yen) Results Year-over-year changes Resultshighlight highlight 2010 2011 Amount % Maintaining stable revenues despite continued fall in rents in Tokyo office leasing market Net sales 23.5 22.4 (1.0) -4.5% Operating Key Keypoint pointin inbusiness businessplan: plan:imple

  23. Slide 23: Real Estate (2)

    Real Estate (2) Overview Overviewof ofReal RealEstate EstateBusiness Business Majority of the business’s operating income is from real estate leasing – Property portfolio largely comprises properties in metropolitan Tokyo (5 central wards: see previous page)  Targeting growth via new acquisitions

  24. Slide 24: Sapporo Group Management Plan 2012-2013

    2. 2. Sapporo Sapporo Group Group Management Management Plan Plan 2012-2013 2012-2013 Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 24/50

  25. Slide 25: Medium- to Long-Term Strategy

    Medium- Medium- to to Long-Term Long-Term Strategy Strategy Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 25/50

  26. Slide 26: Sapporo Group's New Management Framework

    Long-term Management Strategies: Sapporo Group’s New Management Framework Basic approach: Working steadily toward long-term goals while also boldly revising resource allocations, executing strategic investments, and enhancing competitiveness through aggressive management Goals (for 2016, 140th anniv

  27. Slide 27: Medium-term Target of New Group Management Structure

    Medium-term Target of New Group Management Structure Of the two business domains, we position food value creation business as the core domain driving the group’s future growth and will make active investments for growth both in Japan and abroad. Sapporo Group’s Business Domains International Real Es

  28. Slide 28: Share of Foods & Soft Drinks

    Medium-term Target of New Group Management Structure In addition to alcoholic beverages and real estate, we aim to grow the foods & soft drinks businesses into the Group’s third source of stable profits. ◆ Share of Foods & Soft Drinks business in the Group’s targets Growth 2010 results 2016 targets

  29. Slide 29: Sapporo Group's International Expansion

    Sapporo Group’s International Expansion Promote unique international strategy through organic growth and local partnerships Premium Premiumbeer beerstrategy strategy Growth Growthinto intoInternational International Area Areastrategy strategyfocused focusedononthe the centered centered on Sapporobra

  30. Slide 30: 2012-2013 Management Targets

    2012-2013 2012-2013 Management Management Targets Targets Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 30/50

  31. Slide 31: Position of Sapporo Group Management Plan 2012-2013

    Position of Sapporo Group Management Plan 2012-2013 Solidify the growth trajectory to move up to the dynamic growth stage. Solidifying the growth trajectory Dynamic growth Launch the new group III. Creating new opportunities for growth management structure for dynamic growth! II. Carrying out growth

  32. Slide 32: 2012-2013 Management Targets

    2012-2013 Management Targets Consolidated Consolidatedtargets targets 2006 results 2011 results 2012 targets 2013 targets 2016 targets Consolidated net sales ¥435.0 bn ¥454.0 bn ¥510.0 bn ¥535.0 bn ¥600.0 bn *incl. liquor taxes (excl. liquor taxes) ¥294.0 bn ¥341.4 bn ¥396.0 bn ¥420.0 bn ¥450.0 bn C

  33. Slide 33: 2012-2013 Management Targets by Segment

    2012-2013 Management Targets by Segment Targets Targets 2011 results 2012 targets 2013 targets Japanese Alcoholic Beverages ¥268.1 bn ¥288.0 bn ¥300.0 bn International Business ¥25.8 bn ¥37.3 bn ¥44.0 bn Food & Soft Drinks ¥112.7 bn ¥134.6 bn ¥140.0 bn Net sales Restaurants ¥24.0 bn ¥24.9 bn ¥26.0 b

  34. Slide 34: 2012-2013 Basic Strategies

    2012-2013 2012-2013 Basic Basic Strategies Strategies Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 34/50

  35. Slide 35: Basic Strategies for Promoting Robust Growth

    Basic Strategies for Promoting Robust Growth I.I.Challenge Challengetoward towardgrowth growthin inall allbusinesses businesses ★ While leveraging the strengths of our various business’s brands and their other management resources, we will accept new challenges to beat the competition in all of our

  36. Slide 36: Strategic Investment

    Strategic Investment Basic Basicconcept conceptofofstrategic strategicinvestment investment ◇We ◇Wewill willcontinue continuetotomake makeactive activestrategic strategicinvestment investmentaimed aimedat atfurther further developing the Sapporo Group. developing the Sapporo Group. ◇We ◇Weenvision e

  37. Slide 37: Overall Group Strategy

    Overall Overall Group Group Strategy Strategy Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 37/50

  38. Slide 38: Overall Group Strategy

    Overall Group Strategy 1. 1.Further Furtherpromotion promotionof ofefficiency efficiencyininGroup Groupmanagement management As the size of the Group expands, we will further Holding company/Group headquarters concentrate common operations on SGM, a functional Sapporo Holdings Ltd. support company.

  39. Slide 39: Business Plans

    Business Business Plans Plans Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 39/50

  40. Slide 40: Japanese Alcoholic Beverages

    Japanese Alcoholic Beverages (billions of yen) We aim to display to the markets the qualities Quantitative 2011 results 2012 targets 2013 targets unique to the Sapporo brand while further targets enhancing profitability, raising corporate value Net sales 268.1 288.0 300.0 and brand value. By doing s

  41. Slide 41: Japanese Alcoholic Beverages

    Japanese Alcoholic Beverages Key KeyPoints Pointsin inManagement ManagementPlan Plan2012-2013 2012-2013(Cont.) (Cont.) 2. 2.Laying Layingthe thegroundwork groundworkfor forgrowth growthininexpanding expandingareas areas We set 2012 as the first year for Sapporo to take on the challenge of promoting

  42. Slide 42: International Business

    International Business (billions of yen) In North America, we will further grow the Quantitative 2011 results 2012 targets 2013 targets business by capitalizing on its strengths in the targets premium beer category and aim to boost sales Net sales 25.8 37.3 44.0 by actively engaging in growth market

  43. Slide 43: International Business

    International Business Key KeyPoints Pointsin inManagement Management Plan: Plan:2012-2013 2012-2013(Cont.) (Cont.) 2. 2.Expansion ExpansionininAsia Asiaand andOceania Oceania - Following the completion of the Long An plant, we will implement full- fledged marketing in Vietnam in 2012. Going forward

  44. Slide 44: Food & Soft Drinks

    Food & Soft Drinks (billions of yen) We will accomplish integration towards the Quantitative 2011 results 2012 targets 2013 targets targets start of the new company, POKKA SAPPORO FOOD & BEVERAGE LTD in Net sales 112.7 134.6 140.0 January 2013 and pursue synergies to grow the business into the third

  45. Slide 45: Foods & Soft Drinks (Supplementary)

    Foods & Soft Drinks (Supplementary) ◆ Establish a new company, Pokka Sapporo Food & Beverage Ltd in April 2012 as an entity to drive forward integration. ◆ Set up necessary organizations, including management strategy divisions that play a central role in business strategy, one after another. Schedu

  46. Slide 46: Restaurants

    Restaurants (billions of yen) Under the key phrase of further evolution, we Quantitative targets 2011 results 2012 targets 2013 targets will strengthen area-based restaurant management structure, open new outlets of Net sales 24.0 24.9 26.0 successful formats, and drive forward profit Operating inco

  47. Slide 47: Real Estate

    Real Estate (billions of yen) Quantitative We will raise Sapporo brand’s value and targets 2011 results 2012 targets 2013 targets strengthen Group synergies while boosting Net sales 22.4 24.4 24.0 value of our prime properties so as to further improve profitability for the future. Operating income 8

  48. Slide 48: Returning Profits to Shareholders

    Returning Returning Profits Profits to to Shareholders Shareholders Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 48/50

  49. Slide 49: Returning Profits to Shareholders

    Returning Profits to Shareholders Basic Basic Policy Policy Providing fair returns to our shareholders is a key management policy of our Group. Our basic policy is to pay stable dividends to the extent permitted by our operating performance and financial condition. We also aim to maximize corporate

  50. Slide 50: 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

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