Asahi Group Holdings Ltd · TSE:2502
Asahi — Asahi Breweries — FY2003 Earnings Presentation
30 slides from Asahi's earnings presentation, Feb 24, 2004
Slide 1: 2003 Results and Medium-Term Management Plan
2003 2003Results Resultsand and Medium -Term Management Medium-Term ManagementPlan Plan February 24, 2004 Asahi Breweries, Ltd. URL http://www.asahibeer.co.jp
Slide 2: Contents
Contents 2003 Results and Overview 2003 Results Overview (consolidated) ……………………………….. 1 Results Overview (non-consolidated)…………….…..………… 2 Group Management Overview…………………………….. 3 Background to the Second Medium-Term Management Plan……… 4 Medium-Term The Second Medium- Medium-Term Vision and Busines
Slide 3: 2003 Results and Overview
2003 Results and Overview
Slide 4: 2003 Results Overview (consolidated)
2003 Results Overview (consolidated) ■ 2003 Results (consolidated) (Billions of yen) 2003 Results 2003 Plan (8/7) 2003 2002 YoY (%) Plan Against Plan (%) Asahi Breweries 1,107.0 1,093.8 13.2 (1.2%) 1,100.0 7.0 (0.6%) Asahi Soft Drinks 189.4 177.6 11.8 (6.6%) 188.0 1.4 (0.7%) Asahi Food & Healthcare
Slide 5: 2003 Results Overview (non-consolidated)
2003 Results Overview (non-consolidated) ■ 2003 Results (non-consolidated) (Billions of yen) 2003 Results 2003 Plan (8/7) 2003 2002 YoY Change (%) Plan Against Plan (%) Beer 784.4 849.6 -65.2 (-7.7%) 776.5 7.9 (1.0%) Happoshu 195.6 162.4 33.2 (20.4%) 194.7 0.9 (0.5%) Other 127.0 81.8 45.2 (55.3%) 12
Slide 6: Group Management Overview (2003)
Group Management Overview (2003) ■ 2003 Group Management Overview ◆ Business base expanded to improve Group competitiveness ●Alcoholic Beverages Business (1) Asahi’s position in the beer/happoshu market was improved by reinforcing existing brands and the popularity of new products (2) Other alcohol
Slide 7: Background to the Second Medium-Term Group Management Plan
Background to the Second Medium-Term Group Management Plan ■ First Group Medium-Term Management Plan 2000 2001 2002 2003 2004 【1st Stage】 【2nd Stage】 Management reforms and Improve Group competitiveness strengthening of foundations and grow as a Group Become comprehensive alcoholic beverage producer
Slide 8: The Second Group Medium-Term Management Plan 2004-2006
The Second Group Medium- Term Management Plan 2004 - 2006 Shifting to a New Business Structure in Pursuit of Profitable Growth
Slide 9: Medium-Term Vision and Business Strategies
Medium-Term Vision and Business Strategies ■ Group Medium-Term Vision For a new Asahi Beer Group with abundant growth potential, we will pursue: Trust & Satisfaction 1) Total customer satisfaction Growth & Efficiency 2) Business structure transformations Challenges & Creation 3) A corporate culture
Slide 10: Business Structure Transformation
Business Structure Transformation ～ Reforming the business and earnings structure to achieve profitable growth ～ Alcoholic Beverages Soft drinks Business Comprehensive Asahi Soft Drinks growth strategies Beer/happoshu alcoholic and further structural reforms business Secure position in a mature mark
Slide 11: Numerical Targets
Numerical Targets ■ Consolidated Targets ■ Past Performance and Plan (Billions of yen) (Billions of yen) 2003 2006 Change 1,800 Net Sales Net Sales 1,400.3 1,660 19% Consolidated 1,600 Operating Income 78.9 115 46% 1,400 Ordinary Income 70.4 110 56% 1,200 Parent Net Income 23.2 50 116% 1,000 Operati
Slide 12: Sales Guidelines by Business Segment
Sales Guidelines by Business Segment ■ Sales Guidelines by Segment (Billions of yen) 2003 2006 Change Alcoholic Beverages 1,107.0 1,200 93.0 Soft Drinks 189.4 300 110.6 Includes sales increase of Food & Pharma 22.0 50 28.0 approx. ¥140 bil. from entry into new businesses Overseas Business 13.2 50 36
Slide 13: Operating Income Guidelines by Segment
Operating Income Guidelines by Segment ■ Operating Income Guidelines by Segment (Billions of yen) 2003 2006 Change Alcoholic Beverage 72.4 90 17.6 Soft Drinks 2.8 15 12.2 Includes operating income Food & Pharma 0.0 3 3.0 increase of approx. ¥10 bil. from entry into new Overseas Businesses -1.5 2 3.5
Slide 14: Alcoholic Beverages Business: Market Forecasts
Alcoholic Beverages Business: Market Forecasts ■ Sales Volume Forecasts by Category (Asahi estimates, taxation base) (Thousands of kiloliters) 【Forecast Market Changes from 2003 Base】 Base】 10,000 2004 (est.) 2006 (est.) Sake, others Beer approx -6% approx -11% Whiskey and spirits Wine Happoshu appr
Slide 15: Alcoholic Beverages Business: Beer/Happoshu Strategies
Alcoholic Beverages Business: Beer/Happoshu Strategies ■ Sales Volume Guidelines 【Goal】 (Millions of cases) 240 Maintain stability and long term reliability 220 of cash cow business 200 180 Happoshu 【Basic Strategies】 160 ◆ Secure position in beer/happoshu market 140 ● Strengthen core brands 120 ・Bo
Slide 16: Alcoholic Beverages Business: Other Alcohol Categories Strategies
Alcoholic Beverages Business: Other Alcohol Categories Strategies ■ Sales Guidelines by Category (Billions of yen) 【Goal】 200 Diversify earnings in the alcoholic beverages business 180 through greater sales and efficiency Low 160 56 alcohol beverages 140 【Basic Strategies】 37 120 23.5 ◆ Establish po
Slide 17: Alcoholic Beverages Business: Strengthening Cost Competitiveness
Alcoholic Beverages Business: Strengthening Cost Competitiveness ■ Cost Reductions Achieved and Current Plan 2004-2006 【Breakdown of 2004-2006 Reductions】 2002 2003 Total (est) ■ Production and logistics ¥5 bil. bil. 15.3 bil. yen 10.8 bil. Yen 14 bil. Yen ■ Personnel, sales promotion, others ¥9 bil
Slide 18: Alcoholic Beverages Business: Measures to Enhance Competitiveness
Alcoholic Beverages Business: Measures to Enhance Competitiveness Strengthen Group competitiveness, focusing on the alcoholic beverages business ● ● Combine Combine unique unique technologies technologies from from newly newly acquired acquired Group Group companies companies with with Product techn
Slide 19: Core Businesses: Strengthening Existing Businesses and Investment
Core Businesses: Strengthening Existing Businesses and Investment ■ Strategies to Strengthen Existing Businesses ● ● Lower Lower the the break-even break-even point point through through structural structural reforms reforms (optimal (optimal production production structure, structure, Soft Drinks e
Slide 20: Financial Position Improvements and Cash Flow Strategies
Financial Position Improvements and Cash Flow Strategies ■ Financial/Business Restructuring and Accounting Changes (Billions of yen) 2000 2001 2002 2003 【2004-2006】 Marketable securities 45.3 10.2 11.0 1.3 ■ Introduction of asset impairment Pension reserve shortfall 18.1 20.4 - - accounting for fixe
Slide 21: Organizational Reform and Harmony with Society
Organizational Reform and Harmony with Society Foster a corporate culture that rewards innovation, and has the will to meet any challenge ◆ Initiatives Toward Organizational Reform ● ● Adopt Adopt personnel personnel and and compensation compensation systems systems based based on on ability ability
Slide 22: 2004 Performance Forecasts and Business Strategies
2004 Performance Forecasts and Business Strategies
Slide 23: 2004 Group Business Strategies and Consolidated Forecasts
2004 Group Business Strategies and Consolidated Forecasts Establish a new earnings structure for the first year of the Second Medium-Term Management Plan ●Alcoholic Beverages ⇒ Pursue further growth and efficiency as a leading comprehensive alcohol producer ●Soft Drinks, Food & Pharmaceuticals, Over
Slide 24: 2004 Alcoholic Beverages Strategies and Forecasts (non-consolidated)
2004 Alcoholic Beverages Strategies and Forecasts (non-consolidated) ““Pursue Pursue further further growth growth and and efficiency efficiency as as aa leading leading comprehensive comprehensive alcoholic alcoholic beverage beverage producer producer”” ● ● Foster Foster the the impression impress
Slide 25: Beer/Happoshu: 2003 Overview
Beer/Happoshu: 2003 Overview ■ Beer/Happoshu Taxable Volume (Jan-Dec 2003) (Millions of cases) Asahi Breweries Industry Overall 2003 YoY change (%) Share (% change) 2003 YoY change (%) Breakdown (%) Beer 150.15 -13.01 (-8.0%) 48.2% (+0.8) Beer 311.69 -32.24 (-9.4%) 60.7% (-2.1) Happoshu 54.53 7.38 (
Slide 26: Beer/Happoshu: 2004 Sales Plan and Initiatives
Beer/Happoshu: 2004 Sales Plan and Initiatives ■ Beer/Happoshu Sales Plan (Millions of cases) 2004 (Jan-Dec) 【2004 Industry Outlook】 Plan 2003 YoY Super Dry 138.5 146.60 -5.5% ◆ Beer: Decline approx. 6% Others 3.0 3.26 -8.0% Beer 141.5 149.86 -5.6% ◆ Happoshu: Increase approx. 6% Honnnama 33.5 37.60
Slide 27: Alcohol Product Diversification: 2003 Overview
Alcohol Product Diversification: 2003 Overview ■ 2003 Asahi Sales Results (Billions of yen) 2003 (Jan-Dec) 【2003 Industry Estimates】 2003 2002 YoY (%) ◆ Shochu: Approx. 8% increase Shochu 51.9 20.6 31.3 (152%) ◆ Whiskey & Spirits: Approx. 10% Whiskey & Spirits 32.3 31.2 1.1 (4%) decline Low-alcohol
Slide 28: Alcohol Product Diversification: 2004 Sales Plan and Initiatives
Alcohol Product Diversification: 2004 Sales Plan and Initiatives ◆ In each category, strengthen existing brands and develop innovative products by combining Group capabilities ● ● Sales Sales Target: Target: ¥59 ¥59 bil. bil. (YoY (YoY +14%) +14%) ・Strengthen ・Strengthen core core Daigoro, Daigoro,
Slide 29: Alcoholic Business: Advertising and Promotion Expense Estimates
Alcoholic Business : Advertising and Promotion Expense Estimates ■ Advertising and Sales Promotion Expenses by Category (Billions of yen) 2000 2001 2002 2003 2004 Plan YoY YoY Beer 86.5 75.4 66.0 60.3 -5.7 51.9 -8.4 Happoshu - 15.8 19.6 20.5 0.9 21.5 1.0 Beer/Happoshu Total 86.5 91.2 85.6 80.8 -4.8
Slide 30: Information in this material is not intended to solicit sales or purchases
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