Asahi Group Holdings Ltd · TSE:2502
Asahi — Asahi Breweries — FY2006 Earnings Presentation
27 slides from Asahi's earnings presentation, February 2007
Slide 1: Third Medium Term Group Management Plan (2007-2009)
Third Medium Term Group Management Plan (2007-2009) February 2007 URL http://www.asahibeer.co.jp
Slide 2: Contents
Contents Overview and Future Overview of 2006 Results..................................................................... 1 Directions Overview of the Second Medium-Term Management Plan............. 2 Background to the Third Medium Term Management Plan............ 3 Medium-Term Third Medium- Long-T
Slide 3: Overview of the Second Medium-Term Management Plan and Future Directions
Overview of the Second Medium-Term Management Plan and Future Directions for Group Management Chairman Chairman of of the the board board and and CEO CEO Kouichi Kouichi Ikeda Ikeda
Slide 4: Overview of 2006 Results
Overview of 2006 Results (billions of yen) 120.0 1,500.0 2006 2005 1,444.2 1,446.4 1,430.0 1,031.1 1,054.2 (23.1) (2% ) 100.0 1,400.3 231.6 225.2 6.4 3% 1,375.3 1,400.0 30.3 26.8 3.5 13% 153.4 123.8 29.6 24% 80.0 1,446.4 1,430.0 16.4 1% 1,300.0 78.6 78.5 0.1 0% 60.0 10.1 9.6 0.5 5% 101.2 90.2 88.7 1
Slide 5: Overview of the Second Medium-Term Management Plan
Overview of the Second Medium-Term Management Plan Results Creation of a new foundation for growth for the group Expanded business areas in the beverage business through M&As in China and South Korea, and in the chilled drinks and food & healthcare businesses. Earnings structure reforms that exceede
Slide 6: Background to the Third Medium Term Management Plan
Background to the Third Medium Term Management Plan Anticipated changes in the business environment Consumption Increased demand for high levels Diversifying consumer needs structure of quality and safety Economic Consumption tax reforms/smaller Expansion of M&As/alliances structure tax differential
Slide 7: The Third Medium-Term Group Management Plan
The Third Medium-Term Group Management Plan (2007-2009) President President and and COO COO Hitoshi Hitoshi Ogita Ogita
Slide 8: Long-Term Vision and Medium-Term Business Strategy
Long-Term Vision and Medium-Term Business Strategy Group Long-Term Vision To become the “leading company” with high growth potential by continuously offering “lifelong enjoyment and excitement” to customers, especially in Asia, in the business domain of “food and health.” Medium-Term Business Strate
Slide 9: Quantitative Medium-Term Group Targets
Quantitative Medium-Term Group Targets Consolidated Quantitative Targets 2009 targets 2006 results % over 2006 Sales 1,600.0 1,446.4 11% Operating income 110.0 88.7 24% EBITDA (*1) 159.0 139.6 14% Ordinary income (*2) 116.0 90.1 29% Net income 55.0 44.8 23% ROE above 10% 9.6% Operating income ratio
Slide 10: Guidelines by Business
Guidelines by Business Guidelines by Business (existing business plan) (billions of yen) 2009 targets 2006 % over 2006 Notes Alcoholic beverages 1,110.0 1,031.1 8% = Asahi Breweries = Asahi Soft Drinks + 2 LB Soft drinks 290.0 249.9 16% companies = Asahi Food & Healthcare + Food and healthcare 80.0
Slide 11: Alcoholic Beverages Business Strategy (Beer Products)
Alcoholic Beverages Business Strategy (Beer Products) Return to the idea of "pursuing customer satisfaction", and strengthen and enhance brands and overall business activities Basic Beer Strategy Beer Strengthen the "total marketing" strategy for "Asahi Super Dry." Expand investments that pursue the
Slide 12: Alcoholic Beverages Business Strategy (Other Alcoholic Beverages)
Alcoholic Beverages Business Strategy (Other Alcoholic Beverages) Basic Strategy for the Other Alcoholic Beverages segment Develop leading brands in each category and genre Given the diversifying needs of customers, expand investments aimed at developing leading brands that have their own individual
Slide 13: Alcoholic Beverages Business Strategy (Earnings Structure Reform and Organizational Strengthening)
Alcoholic Beverages Business Strategy (Earnings Structure Reform and Organizational Strengthening) Earnings Structure Reform Enhance marginal profit Invest to promote greater efficiency; build optimum production and distribution structures (concentrate operations in Ibaraki Brewery, etc.) Streamline
Slide 14: Soft Drinks Business Strategy
Soft Drinks Business Strategy Expand business foundations around Asahi Soft Drinks as the 2nd pillar of the group's business Asahi Soft Drinks "Growth Strategy," "Structural Reform," and "Take on Challenges in New Areas" Solidify the 3 key brands, and develop brands in the focal areas. Develop produ
Slide 15: Food and Healthcare Business Strategy
Food and Healthcare Business Strategy Enhance value of existing brands and establish a growth path by utilizing group synergies Asahi Food and Healthcare Strengthen business foundations through "Growth Strategies," "Structural Reform," and "Ensuring Safety and Confidence" Strengthen brands in existi
Slide 16: Overseas Business Strategy
Overseas Business Strategy Strengthen business foundations and improve profitability through growth of both Asahi's and local brands Overseas Alcoholic Beverages Business Expand business foundations and improve profitability in the Asian region with a focus on China Strive for dynamic growth of all
Slide 17: Financial and Cash Flow Strategy
Financial and Cash Flow Strategy Operating Operatingcash cashflow flow(cumulative (cumulative2007 -2009) 2007-2009) Approx. ¥300bn Cash flow allocation guideline Allocate flexibly in accordance with managerial/business environment Capital investment aimed at strengthening business foundations/effici
Slide 18: Efforts aimed at Strengthening Operating Foundations
Efforts aimed at Strengthening Operating Foundations Organizational reform and HR development Further reinforce business activities based on the "customer's perspective" across the group. Pursue reforms to acquire an organizational culture that would establish the DNA for taking on new challenges. I
Slide 19: 2007 Business Strategy
2007 Business Strategy President President and and CEO CEO Hitoshi Hitoshi Ogita Ogita
Slide 20: Forecasts for 2007 Financial Results
Forecasts for 2007 Financial Results (billions of yen) 140 1,600 2007 target 2006 1,078.0 1,031.1 46.9 5% 1,520.0 263.1 249.9 13.2 5% 120 1,500 67.1 55.7 11.4 20% 1,444.2 1,446.4 1,430.0 61.7 57.1 4.6 8% 100 1,400.3 50.1 52.6 (2.5) (5% ) 1,400 1,520.0 1,446.4 73.6 5% 80 80.0 78.6 1.4 2% 1,300 10.7 1
Slide 21: Strategies by Business Area
Strategies by Business Area Domestic Alcohol Business Aim to bolster the competitiveness of beer and beer-type beverages with brand investment in the "Asahi Super Dry" brand as a key area Engage in comprehensive marketing activities for "Asahi Super Dry" in its 20th anniversary. Rejuvenate the happo
Slide 22: Sales Targets for Beer and Beer-Type Beverages
Sales Targets for Beer and Beer-Type Beverages 2007 Sales Targets by Brand Market Outlook 2007 target 2006 YoY (%) Beer approx. (2%) Super Dry 134.00 132.60 1.1% Happoshu approx. (3%) Prime Time 1.60 1.55 3.2% New genre approx. 5% Other 3.40 3.05 11.5% Beer total 139.00 137.20 1.3% Total approx. (1%
Slide 23: Beer Category Strategies
Beer Category Strategies Aiming Aiming to to increase increase the the value value of of the the "Asahi "Asahi Super Super Dry" Dry" brand, brand, implement implement comprehensive comprehensive marketing marketing activities activities under under the the banner banner of of Bolster Bolster activit
Slide 24: Strategy for the Happoshu & New Genre Category
Strategy for the Happoshu & New Genre Category Create Create product product lineup lineup for for happoshu happoshu and and new new genre genre beverages beverages that that fits fits market market segments/consumption segments/consumption scenarios, scenarios, and and develop develop and and estab
Slide 25: Efforts in the Other Alcohol Category
Efforts in the Other Alcohol Category Enhance presence in the other alcohol market by strengthening brands and promote earnings structure reform Shochu: Shochu: Strengthen Strengthen brands brands in in each each category: category: "Kanoka," "Kanoka," "Daigoro,""Satsumatsukasa" "Daigoro,""Satsumats
Slide 26: Reference: Trends in Marketing Costs
Reference: Trends in Marketing Costs Sales promotion expenses by category 02 03 04 05 06 2007 plan YoY Sales promotion premium 67.9 77.9 76.3 77.8 80.8 84.9 4.1 Advertising and promotional expenses 38.1 31.2 32.3 32.2 32.7 36.4 3.7 Total 106.0 109.1 108.6 110.0 113.5 121.3 7.8 Breakdown Beer 66.0 60
Slide 27: 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