Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Q1 2011 Earnings Presentation
31 slides from Kirin's earnings presentation, May 2011
Slide 1: KIRIN2011: Pursuing further growth and profitability
KIRIN2011: Pursuing further growth and profitability May, 2011 Kirin Holdings Company, Limited 0
Slide 2: Management summary
Management summary Strong performance in 1Q: Record sales, operating profit and ordinary income achieved we further improved efficiency by cost reduction across the Group and promoted Domestically, strengthening our brand. Overseas, we achieved to build a stronger base for our non-alcohol beverages
Slide 3: Steadily increasing substantive profit and becoming more global
Steadily increasing substantive profit and becoming more global Poised to realize Cash ROE and Overseas sales ratio targets prior to 2012 [Quantitative targets and results] ( billion yen ) YoY Target 2010 actual 2011 plan change(% ) 2012 Net sales excluding liquor tax 1,835.2 1,810.0 (1.4) 2,130.0 O
Slide 4: 1. First Quarter Results
1. First Quarter Results Record-high sales, operating income, ordinary income Pharmaceuticals and biochemicals business had considerable increases in revenue and profit, and Group cost reductions contributed to pushing up profit 1Q 2011 YoY change YoY change (¥ bn) (¥ bn) (% ) Domestic alcohol bever
Slide 5: 2011 1Q: Good progress on group-wide efforts
2011 1Q : Good progress on group-wide efforts Realized further profitability and efficiency improvements Cross Cross Company Company Teams: Teams: Cost Cost synergies synergies (billion yen) 2011 target First quarter Progress rate Production / 4.7 1.6 34% distribution Purchasing 4.0 1.0 25% IT, etc.
Slide 6: 2011 1Q: Further progress to become more global
2011 1Q : Further progress to become more global Accelerate overseas expansion, centered around non-alcohol beverages business and pharmaceuticals business Non-alcohol beverages business in China Agreement reached with China Resources Enterprise to establish a joint venture to conduct non-alcohol
Slide 7: Japan: Solid growth driven by strong brands
Japan : Solid growth driven by strong brands Kirin Brewery Promoted value-creating product development geared towards the creation of new categories, such as Kirin Koiaji (Zero-carbohydrate) and Makkoi Umeshu Announced overview of new company “Kirin Beer Marketing Company, Limited” New company i
Slide 8: Australasia: More focus on innovation against tough market
Australasia : More focus on innovation against tough market LNNF continued to make progress in improving mix and efficiency through brand focused business strategy. Rising interest rates and power costs, increased saving and the ongoing economic uncertainty have impacted consumer spending in bot
Slide 9: 3.11 earthquake: Post-disaster situation and financial impact
3.11 earthquake: Post- disaster situation and financial impact Two of Kirin Brewery’s plants and other facilities sustained damage, but restoration has proceeded swiftly except for Sendai plant. Operations have returned to virtually normal at the end of April While estimating all of the damages,
Slide 10: 3.11 earthquake: Current condition and outlook for recovery
3.11 earthquake: Current condition and outlook for recovery Condition of our companies in each supply chain is improving at the end of April; actions are being taken to secure the product supply system the same as it was before the earthquake disaster Closely monitor the variable factors for the
Slide 11: Appendix
Appendix BOLE KHlc KIRIN 10
Slide 12: KIRIN at a glance
KIRIN at a glance - Unique business portfolio “Integrated beverage group” - Strong R&D capability and rich seeds for new product development fostered in Japan, the world’s most demanding and challenging beverage market - Kirin is building strong relationships with great partners in Asia and Oceania
Slide 13: Vision for an ambitious new growth trajectory
Vision for an ambitious new growth trajectory More international, more integrated… Becoming a leading food, health and wellbeing company in Asia and Oceania [ Key Scenarios for Kirin Group Vision 2015 (KV2015)*] 1. 1. Pursue Pursue an an integrated integrated beverages beverages group group strategy
Slide 14: 2010 MTBP—from quantity to quality
2010 MTBP—from quantity to quality We are here Stage Stage 3: 3: 2013 2013 MTBP MTBP (2013-2015) (2013-2015) Stage Stage 2: 2: 2010 2010 MTBP MTBP (2010-2012) (2010-2012) Stage Stage 1: 1: 2007 2007 MTBP MTBP (2007-2009) (2007-2009) Three years of implementation focus on increasing profitability Thr
Slide 15: Domestic: Building greater strength and competitiveness
Domestic: Building greater strength and competitiveness All for becoming strong Integrated Beverage Group For top line growth, profitability and efficiency improvement Brand Value Profit Structure Reform Group synergy Improvement Value proposition than pricing Site optimization at KB Synergy gene
Slide 16: Value proposition to make strong brands stronger
Value proposition to make strong brands stronger Strengthening of leading core brands Nodogoshi Nama: Maintained overwhelming presence in the growing New Genre Market Gogo- no- Kocha : Achieved record sales as a driving force in the black tea market New Value Creation Kirin Free: Pioneer of 0.00%
Slide 17: Strong pipeline: Antibody pharmaceutical
Strong pipeline: Antibody pharmaceutical (as of April, 2011) Overview of Development Pipeline Therapeutic Ph II Preclinical Ph I Area KW-0761(CCR4) U.S. (Ph I/II) Japan (Filed) KRN330(A33) Ten Antibodies U.S. (Ph I/II) Cancer BIW-8962(GM2) (seven U.S. (Ph I/II) POTELLIGENT® antibodies, KHK2866(HB-EG
Slide 18: Becoming more profitable, efficient through group-wide effort
Becoming more profitable, efficient through group-wide effort (Unit: billion yen) Target for CCT* 2010 targets 2010 actual 2011 targets 2010 MTBP Production and 0.8 3.8 4.7 5.0 logistics Procurement 4.6 8.2 4.0 10.1 IT/other 2.1 2.9 0.7 4.0 Total 7.5 14.9 9.4 19.1 Target for 2010 targets 2010 actual
Slide 19: Road to global: Outstanding potential in Southeast Asia
Road to global: Outstanding potential in Southeast Asia Kirin Holdings Singapore Authority of speedy investment decision / Search of growth opportunity Production development through collaboration with F&N Centre core of HR development Our great partners The Philippines -SMB’s 4 core brands co
Slide 20: Road to global: Further business development in China
Road to global: Further business development in China Partnership Partnership with with “China “China Resources Resources Enterprise” Enterprise” Speeding up of development in soft drinks market through hybridization of each other’s strengths: Kirin Group Product development, technical standards, re
Slide 21: Road to global: More integration and innovation in Australasia
Road to global : More integration and innovation in Australasia Alcohol beverages business: Sustain high profitability through focusing on the growing categories and strong brands. Soft drinks and Food business: Improve the business infrastructure through strengthening core brands and promoting
Slide 22: Financial strategies for 2011 and after
Financial strategies for 2011 and after Operating cash flow Shareholder returns 2011 (projected): 217.0 bnY Dividends [2010: 218.0 bnY] 2011 (projected): 27Y per share [2010: 25Y per share] Debt repayment Cash flow Growth investment Plant and equipment investment Asset liquidation 2011 (projected):
Slide 23: For harmonious coexistence with society
For harmonious coexistence with society Becoming a low-carbon corporate group Reduced use of resources x Reduce use of energy x Environmentally friendly product - Halve total value chain CO2 emission by 2050 compared to 1990 - Reduce CO2 emission from manufacturing, distribution and office activitie
Slide 24: 3.11 earthquake: Kirin Brewery - Impact and outlook
3.11 earthquake: Kirin Brewery - Impact and outlook (1) Conditions of facilities and equipment State of damage Outlook for recovery Sendai Plant (production capacity of 190ML): In addition to the Sendai Plant: collapse of 4 beer storage tanks, the packaging equipment and Confirm no major damage
Slide 25: 3.11 earthquake: Kirin Beverage - Impact and outlook
3.11 earthquake: Kirin Beverage - Impact and outlook (1) Conditions of facilities and equipment No major damage to Shonan Plant (Kanagawa), Maizuru Plant (Kyoto), manufacturing subsidiary Kirin Chilled Beverages (Saitama), and Kirin Distillery Fuji Gotemba (Shizuoka), manufacturing subsidiary of K
Slide 26: 3.11 earthquake: Mercian/Kyowa Hakko Kirin - Impact & outlook
3.11 earthquake: Mercian/Kyowa Hakko Kirin - Impact & outlook Mercian (1) Damage to facilities and equipment The automated warehouse at the Fujisawa Logistics Center (Kanagawa) malfunctioned and operations were temporarily suspended, but recovery is almost complete at the end of April (no lasting
Slide 27: Reference
Reference BOLE RHI ph ae lal KIRIN 26
Slide 28: [Kirin Brewery] Definition of beer category by liquor tax
[Kirin Brewery] Definition of beer category by liquor tax %age malt Tax per 350ml Characteristics Rich, full-taste Beer Beer 77 yen 100% malt premium beer is common, 66.7% plus with higher malt content associated with deeper, richer taste. [207 yen*] 62 Products in this zone have previously Happo- 2
Slide 29: [Kirin Brewery] Marketing Strategy for 2011 ~Product Lineup~
[Kirin Brewery] Marketing Strategy for 2011 ~Product Lineup~ 1. 1. Concentrated Concentrated investment investment for for Core Core Brands Brands Beer Beer Happo-shu Happo-shu New New Genre Genre RTD RTD Non Non Alcohol Alcohol Beer Beer Taste Taste Beverage Beverage 2. 2. Stimulating Stimulating o
Slide 30: [Kirin Beverage] Marketing Strategy for 2011 ~Product Lineup~
[Kirin Beverage] Marketing Strategy for 2011 ~Product Lineup~ 1. 1. Concentrated Concentrated investment investment for for Core Core Brands Brands Coffee: Coffee: FIRE FIRE Black Black Tea: Tea: Gogo- Gogo- no- no- kocha kocha Green Green Tea: Tea: Nama-cha Nama-cha 2. 2. Initiatives Initiatives fo
Slide 31: This material is intended for informational purposes only
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