Takara Holdings Inc. · TSE:2531
Takara — FY2024 Earnings Presentation
67 slides from Takara's earnings presentation, May 14, 2024
Slide 1: Financial results for the fiscal year ended March 31, 2024
Financial results for the fiscal Year Ended March 31, 2024 May 14, 2024 Takara Holdings Inc.
Slide 2: Contents
Contents Ⅰ. Financial results for the fiscal year ended March 31, 2024 Ⅱ. Financial forecasts for the fiscal year ending March 31, 2025 Ⅲ. Business strategy for the fiscal year ending March 31, 2025 １．Takara Shuzo ２. Takara Shuzo Int’l Group Ⅳ. Sustainability Ⅴ. Financial and Shareholder Return Poli
Slide 3: Financial results for the fiscal year ended March 31, 2024
Ⅰ. Financial results for the fiscal year ended March 31, 2024
Slide 4: Overview of Medium-Term Management Plan for 2025
Overview of Medium-Term Management Plan for 2025 Long-Term Management Plan “TaKaRa Group Challenge for the 100th（TGC100） ” (for 2020-2025) Vision ～Smiles in Life～ Medium-Term Management Plan for 2022 Medium-Term Management Plan for 2025 for 2020-2022 for 2023-2025 During this period, Takara Group in
Slide 5: Takara Holdings (Consolidated) Financial results
Takara Holdings (Consolidated) Financial results for the fiscal year ended March 31, 2024 （Millions of Yen） Change from ’24/3 Actual YOY (%) the plan for the 1st year of the MMP2025（％） Net Sales 339,372 (3.2) (4.4) Gross Profit 113,933 (5.0) (5.8) Operating 22,242 (41.4) (15.4) income Ordinary 23,33
Slide 6: Financial results by Business
Financial results by Business for the fiscal year ended March 31, 2024 （Millions of Yen） Change from ’24/3 Actual YOY (%) the plan for the 1st year of the MMP2025（％） Net Sales 123,786 +0.7 +0.2 Takara Shuzo Gross profit 31,728 +8.4 +1.8 Operating income 5,503 +12.5 +21.2 Net Sales 160,427 +16.7 (3.1
Slide 7: Consolidated Statements of Cash Flows
Takara Holdings (Consolidated) Statements of Cash Flows for the fiscal year ended March 31, 2024 ◇Consolidated Statements of Cash Flows （Millions of Yen） ’23/3 ’24/3 Change Actual Actual cash flows from operating activities 45,478 29,178 (16,299) cash flows from investing activities (10,474) (19,993
Slide 8: Investment Performance, Dividends, Treasury Stock
Investment Performance, Dividends (planned) , Acquisition and cancellation of treasury stock for the fiscal year ended March 31, 2024 The Takara Group as a whole invested 27.0 billion yen. The expected dividend is 29 yen, and we acquired 3.0 billion yen of treasury stock between November and Februar
Slide 9: Consolidated Financial Performance: Balance Sheets
Takara Holdings (Consolidated) Financial Performance for the fiscal year ended March 31, 2024 ◇Consolidated Balance Sheets （Millions of Yen） '23/3 '24/3 Change '23/3 '24/3 Change Current assets 241,513 245,213 ＋3,700 Current liabilities 67,454 80,657 ＋13,202 Cash and deposits 96,820 95,085 (1,734) N
Slide 10: Financial forecasts for the fiscal year ending March 31, 2025
Ⅱ. Financial forecasts for the fiscal year ending March 31, 2025
Slide 11: Takara Holdings (Consolidated) Financial Forecasts
Takara Holdings (Consolidated) Financial Forecasts for the fiscal year ending March 31, 2025 （Millions of Yen） Target of the MMP2025 '25/3 Forecast Change(%) (’26/3） 420.0 billion yen Net Sales 362,000 ＋6.7 or more Gross Profit 123,500 ＋8.4 ― Operating 38.0 billion yen 25,700 ＋15.5 income or more Or
Slide 12: Financial results by Business forecast
Financial results by Business for the fiscal year ending March 31, 2025 （Millions of Yen） Change Target of the MMP2025 '25/3 Forecast (%) (’26/3） Net Sales 122,373 (1.1) 123.2 billion yen Takara Gross profit 32,160 ＋1.4 ― Shuzo Operating income 5,731 ＋4.1 5.0 billion yen Takara Net Sales 179,000 ＋11
Slide 13: Financial results by Business (1H, 2H)
Financial results by Business for the fiscal year ending March 31, 2025 (1H,2H) （Millions of Yen） '25/3 1H '25/3 2H Change (%) Change (%) Forecast Forecast Net Sales 171,000 ＋4.8 191,000 ＋8.4 Takara Holdings (Consolidated) Gross profit 57,500 ＋3.7 66,000 ＋12.9 Operating income 10,400 (16.6) 15,300 ＋
Slide 14: Impact of Exchange Rate Fluctuations
Impact of Exchange Rate Fluctuations for the fiscal year ending March 31, 2025 The impact of exchange rate fluctuations on Takara Shuzo and Takara Shuzo International Group combined is minor ◇Status of main exchange rates (compared to the previous fiscal year) '24/3 '25/3 Change Actual Forecast USD/
Slide 15: Cash Flows, Depreciation, ROE and ROIC targets
Takara Holdings (Consolidated) Statements of Cash Flows for the fiscal year ending March 31, 2025 , Financial Targets ◇Consolidated Statements of Cash Flows （Millions of Yen） '24/3 '25/3 Change Actual Forecast cash flows from operating activities 29,178 33,431 4,253 cash flows from investing activit
Slide 16: Investment Plan, Dividends (planned)
Investment Plan, Dividends (planned) for the fiscal year ended March 31, 2025 The Takara Group as a whole plans to invest 25.5 billion yen. The dividend forecast is 31 yen, with a payout ratio of 35.2% ◇Investment Plan （Billions of Yen） ’25/3 Forecast Overview ・Matsudo Plant: Integration of large PE
Slide 17: Business strategy: Takara Shuzo
Ⅲ．Business strategy for the fiscal year ending March 31, 2025 １．Takara Shuzo
Slide 18: Change in Operating Income FY2024 (Takara Shuzo)
Analysis of the Change in Operating Income for the year ended March 31, 2024 (Takara Shuzo) <Year-on-year> Gross profit increased due to the effect of price revisions and changes in sales composition, absorbing increased costs and advertising and promotion expenses and resulting in increased income
Slide 19: Change in Operating Income FY2025 (Takara Shuzo)
Analysis of the Change in Operating Income for the year ended March 31, 2025 (Takara Shuzo) <Year-on-year> The effect of exchange rates was offset by cost reductions and the effect of price revisions, resulting in an increase in gross profit. Despite an increase in transportation cost, etc., income
Slide 20: Takara Shuzo: Business Strategy
Takara Shuzo: Business Strategy for the fiscal year ended March 31, 2025 Basic We will engage in thorough brand development, raise profit margins, policy and expand Washu into global markets ●Strengthen product and brand development capabilities to substantially boost profit and profit margins ●Expa
Slide 21: Initiatives of Developing key brands
Initiatives of Developing key brands In the fiscal year ending March 31, 2024, total net sales of key brands were 5.6% higher, Gross profit were 11.9% higher than the year-earlier result. In the fiscal year ending March 31, 2025, total net sales of key brands will be 6.4% higher, Gross profit will b
Slide 22: Key brands Development Plan
Initiatives of Developing key brands The sales composition ratio of key brands increased in the fiscal year ended March 31, 2024. Price revisions led to improved profit margins, and overall gross profit margins also improved. We will continue to expand key brands and improve profit margins in the fi
Slide 23: Brand Development: Takara Karakuchi Zero Ball
Initiatives of Brand Development <Takara Karakuchi Zero Ball> In the fiscal year ended March 31, 2024, sales volume increased and we gained greater recognition due to TV commercials that promoted the product’s compatibility with meals. We continued to promote TV commercials featuring Shuzo Matsuoka
Slide 24: Brand Development: Sho Chiku Bai Shirakabegura MIO Sparkling Sake
Initiatives of Brand Development <Sho Chiku Bai Shirakabegura “MIO” Sparkling Sake> In the fiscal year ended March 31, 2024, the brand was revitalized through TV commercials around the Christmas and New Year period. We will continue to strengthen information dissemination through TV commercials and
Slide 25: Brand Development: Takara Shochu Highball
Initiatives of Brand Development <Takara Shochu Highball> By continuing to run a BS program and using fan websites, we will secure loyal users, as well as acquire new users by launching a wide range of limited-edition products ●Acquiring loyal users ・Promote the product’s ・Sale of limited-edition ca
Slide 26: Brand Development: Sho Chiku Bai Subaru
Initiatives of Brand Development <Sho Chiku Bai “Subaru”> To revitalize the market of “Fragrant Washu,” we will acquire users through the use of sampling and digital advertisement ●Obtaining a hands-on experience of ●Introducing digital advertisement “Fragrant Washu” through sampling ・Distribution p
Slide 27: Business Strategy: Takara Shuzo Int'l Group
Ⅲ．Business Strategy for the fiscal year ending March 31, 2025 2．Takara Shuzo Int’l Group
Slide 28: Change in Operating Income FY2024 (Takara Shuzo Int'l Group)
Analysis of the Change in Operating Income for the year ended March 31, 2024 (Takara Shuzo Int’l Group) <Year-on-year> Gross profit increased due to an increase in net sales and the effect of M&As, which offset a rise in personnel expenses, etc., resulting in increased income ◇Year-on-year change in
Slide 29: Change in Operating Income FY2025 (Takara Shuzo Int'l Group)
Analysis of the Change in Operating Income for the year ended March 31, 2025 (Takara Shuzo Int’l Group) <Year-on-year> We plan to continue expanding net sales, which will increase gross profit and offset a rise in personnel expenses, etc., resulting in increased income ◇Year-on-year change in operat
Slide 30: Takara Shuzo Int'l Group: Business Strategy
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 31: Overseas Alcoholic Beverages Business (Washu): Business Policy
Overseas Alcoholic Beverages Business (Washu) : Business Policy 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. ●”Pro
Slide 32: 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 33: Washu: Initiatives of MIO Brand Development
Overseas Alcoholic Beverages Business(Washu) : Initiatives of “MIO”Brand Development Due to an increase in market inventory in the fiscal year ended March 31, 2023 caused by logistics disruptions, sales in the fiscal year ended March 31, 2024 were lower year-on-year. However, sales are expected to g
Slide 34: Washu: MIO Brand Development
Overseas Alcoholic Beverages Business(Washu) : Initiatives of “MIO”Brand Development We will revitalize the “MIO” brand by disseminating information on social media, etc. ●Revitalize the MIO brand by utilizing exclusive overseas products such as “MIO” ＜CRISP＞ and ＜NIGORI＞ ●Strengthen information dis
Slide 35: Washu: Initiatives to expand exports (SAKE)
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand exports (SAKE) We will strengthen the “MIO” lineup and introduce exclusive overseas products in the United States, Asia, and Europe. We will also expand in various countries with high- added-value products under the Sho Chiku Bai b
Slide 36: Washu: Initiatives to expand exports (RTD)
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand exports (RTD) We export TaKaRa CHU-HI, a canned product that meets local needs, to the U.S., which is the largest ready-to-drink products market. We export Takara NIPPON CHU-HI “Selected from Japanese Farm” to Asia, Oceania and Eur
Slide 37: Washu: Initiatives to expand Innovative SAKE
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand “Innovative SAKE” Develop innovative washu such as sake cocktails, and expand sales in collaboration with Mutual Trading Co., Ltd. ＜Ontario＞ ●Increasing sales of sake cocktails by introducing new flavors and small-volume developmen
Slide 38: Initiatives to expand Innovative SAKE: WAKAZE collaboration
Overseas Alcoholic Beverages Business(Washu) : Initiatives to expand “Innovative SAKE” We will continue our collaboration with WAKAZE, a Japanese sake startup company in which we invested in January 2023, and begin contract manufacturing of canned sparkling sake for the U.S. market ＜cooperation with
Slide 39: 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 areas, and Business develop and cultivate differentiated products to achieve rapid growth significantly po
Slide 40: Japanese Food Wholesale: Expansion in Texas
Japanese Food Wholesale Business : Plans to expand operations in the rapidly growing state of Texas Following the M&A of Minamoto Wholesale Limited, LLC, we plan to open a new base in Houston in the fall of 2024. This will further strengthen sales in the surrounding areas, including major metropolit
Slide 41: Japanese Food Wholesale: New base development plans
Japanese Food Wholesale Business : New base development plans In 2025, we plan to open a new base in Seattle, the largest city in the western U.S. state of Washington Expanding to 15 bases in 12 states in North America Mutual Trading Seattle Branch (Opening in 2025) Number of Japanese Growth rate 20
Slide 42: Japanese Food Wholesale: New product development
Japanese Food Wholesale Business : Initiative plan of New product development We will expand differentiated products such as plant-based products, organic and vegan foods, and high-quality Wagyu beef ●Expanding differentiated products Plant-based products Organic and vegan High-quality Wagyu (konjac
Slide 43: Japanese Food Wholesale: 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. ●Developing American and Asian mass retailers in North America ●Entering the catering industry, which
Slide 44: Japanese Food Wholesale: Strengthening sales of washu
Japanese Food Wholesale Business : Initiative plan of Strengthening sales of washu We will promote measures to strengthen sales of Washu as well as initiatives jointly undertaken by the head office and the Group ● Promoting measures to strengthen sales of Washu ・Accelerate the development of retail
Slide 45: Overseas Alcoholic Beverages (Western-style liquor): Business Strategy
Overseas Alcoholic Beverages Busines (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 and policy Blanton’s, and achieve stable earnings gr
Slide 46: Sustainability
IV. Sustainability
Slide 47: Value chain for social issues: Human Resources
Enhance the value chain that supports resolving social issues ＜Human Resources＞ ●Strengthening human resources to expand overseas business ・ Continue to strengthen the placement of young employees at Takara Shuzo Int’l Group and overseas locations ・ Host a Global Cafe (online social event with peopl
Slide 48: Value chain for social issues: Responding to Climate Change
Enhance the value chain that supports resolving social issues ＜Responding to Climate Change＞ ●Continuing efforts to reduce CO₂ emissions ・Gasification of heavy oil boilers at Kurokabegura ・Promote modal shift to ferries and railways at Takara Shuzo ●Initiatives for the ’24/3 ・January 2024: Takara Ho
Slide 49: Resolve social issues through products and services
Resolve social issues through the business of providing Products and services ●Developing environmentally friendly products (Takara Bio Group) ・Shifted to packages using FSC-certified ・Switched from one side aluminum pouch materials and vegetable oil Ink to aluminum-free pouch *For some products, do
Slide 50: Financial and Shareholder Return Policies
Ⅴ．Financial and Shareholder Return Policies
Slide 51: Financial and Shareholder Return Policies
Financial and Shareholder Return Policies Financial policy Create cashflow by increasing the efficiency of assets and through the sale of strategic shareholdings while enhancing global cash management, for the purpose of accelerating investments in growth and high-priority fields based on the mainte
Slide 52: Takara Holdings Operating Income trends
Takara Holdings (consolidated) Operating Income trends In the fiscal year ending March 2025, we will break away from two consecutive periods of declining profits and return to profit growth （billions of yen） 45 43.3 Others 40 Takara Bio Group 37.9 Takara Shuzo Int'l Group 35 Takara Shuzo 30 25.7 25
Slide 53: Smiles in Life
Smiles in Life ～Smiles are Life's Treasures～ By contributing to enriching the well-balanced diet of people around the world through washu and Japanese food, and by contributing to healthy living through our bio business, we aim to realize our vision, "Smiles in Life." Create value in Contribute to a
Slide 54: Appendix
Appendix Takara Holdings (Consolidated) Profit and loss Takara Shuzo statement ‘24/3 Actual Takara Shuzo Int’l Group Takara Shuzo Int’l Group Major Subsidiaries Sales and operating income Profit and loss Takara Holdings (Consolidated) statement Takara Holdings (Consolidated) Cash flow plan Takara Sh
Slide 55: Takara Holdings Financial Performance: Statements of Income
Takara Holdings (Consolidated) Financial Performance for the fiscal year ending March 31, 2024 ◇Consolidated Statements of Income （ Millions of Yen ） Effect of change Change from forecasts announced '24/3 Change from '23/3 on November, 2023 in exchange rates on net sales Actual Change YOY(%) Change
Slide 56: Takara Shuzo Financial Performance
Takara Shuzo Financial Performance for the fiscal year ending March 31, 2024 ◇Statements of Income (Net sales ~ Operating income) （ Millions of Yen ） Change from forecasts '24/3 Change from '23/3 announced on November, 2023 Actual Change YOY(%) Change Change(%) Shochu 34,324 (2,272) (6.2) 669 ＋2.0 S
Slide 57: Takara Shuzo Int'l Group Financial Performance
Takara Shuzo Int’l Group Financial Performance for the fiscal year ending March 31, 2024 ◇Statements of Income (Net sales ~ Operating income) （ Millions of Yen ） Effect of change Change from forecasts '24/3 Change from '23/3 announced on November, 2023 in exchange rates on net sales Actual Change YO
Slide 58: Takara Shuzo Int'l Group Major Subsidiaries Financial Performance
Takara Shuzo Int’l Group Major Subsidiaries Financial Performance for the fiscal year ending March 31, 2024 '23/3 Actual '24/3 Actual Operating Operating Net Sales Net Sales income(loss) income(loss) Takara Sake USA Inc. Thousands of US dollar 46,041 5,007 44,771 5,048 Millions of Yen 6,060 659 6,29
Slide 59: Takara Holdings Financial forecasts: Statements of Income
Takara Holdings (Consolidated) Financial forecasts for the fiscal year ending March 31, 2025 ◇Consolidated Statements of Income （Millions of Yen） Effect of change '25/3 Change from '24/3 in exchange rates on net sales Forecast Change Change (%) Change Takara Shuzo 122,373 (1,413) (1.1) － Takara Shuz
Slide 60: Takara Holdings Cash flow plan
Takara Holdings (Consolidated) Cash flow plan for the fiscal year ending March 31, 2025 ◇ Cash flow plan （Billions of Yen） Takara Group Takara Shuzo Takara Bio Takara Shuzo Consolidated Int'l Group Group cash flows from operating activities 33.4 7.3 10.1 13.3 cash flows from investing activities (25
Slide 61: Takara Shuzo Financial forecasts
Takara Shuzo Financial forecasts for the fiscal year ending March 31, 2025 ◇Statements of Income (Net sales ~ Operating income) （Millions of Yen） '25/3 Change from '24/3 Forecast Change Change (%) Shochu 31,278 (3,046) (8.9) Sake 11,676 127 ＋1.1 Light-alcohol refreshers 44,543 2,252 ＋5.3 Other liquo
Slide 62: Takara Shuzo Int'l Group Financial forecasts
Takara Shuzo Int’l Group Financial forecasts for the fiscal year ending March 31, 2025 ◇Statements of Income (Net sales ~ Operating income) (Millions of Yen) Effect of change '25/3 Change from '24/3 in exchange rates Forecast on net sales Change Change (%) Change Overseas Alcoholic beverages busines
Slide 63: Takara Holdings Financial forecasts (1H)
Takara Holdings (Consolidated) Financial forecasts for the fiscal year ending March 31, 2025 (1H) ◇Consolidated Statements of Income (Millions of Yen) '25/3 1H Change from '24/3 Forecast Change Change (%) Takara Shuzo 60,173 (1,017) (1.7) Takara Shuzo International Group 85,000 7,835 ＋10.2 Takara Bi
Slide 64: Takara Shuzo Financial forecasts (1H)
Takara Shuzo Financial forecasts for the fiscal year ending March 31, 2025 (1H) ◇Consolidated Statements of Income (Net sales ~ Operating income) (Millions of Yen) '25/3 1H Change from '24/3 Forecast Change Change (%) Shochu 16,141 (1,328) (7.6) Sake 4,311 58 ＋1.4 Light-alcohol refreshers 22,627 844
Slide 65: Takara Shuzo Int'l Group Financial forecasts (1H)
Takara Shuzo Int’l Group Financial forecasts for the fiscal year ending March 31, 2025 (1H) ◇Consolidated Statements of Income (Net sales ~ Operating income) (Millions of Yen) '25/3 1H Change from '24/3 Forecast Change Change (%) Overseas Alcoholic beverages business 11,087 825 ＋8.0 Japanese food wh
Slide 66: Takara Shuzo Int'l Group Major Subsidiaries Financial forecasts
Takara Shuzo Int’l Group Major Subsidiaries Financial forecasts for the fiscal year ending March 31, 2025 '24/3 Actual '25/3 Forecast Operating Operating Net Sales Net Sales income(loss) income(loss) Takara Sake USA Inc. Thousands of US dollar 44,771 5,048 48,501 6,211 Millions of Yen 6,297 710 6,79
Slide 67: 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