Kirin Holdings Co. Ltd. · TSE:2503
Kirin — FY2010 Earnings Presentation
34 slides from Kirin's earnings presentation, Feb 10, 2011
Slide 1: Financial Results for 2010 and Business Approach for 2011
Kirin Group Financial Results for 2010 and Business Approach for 2011 February 10, 2011 Kirin Holdings Company, Limited 0
Slide 2: Management summary
Management summary 2010 2010saw sawaadecrease decreaseininsales salesbutbutan anincrease increaseininoperating operatingincome . The income. Thepursuit pursuitofofvalue valueproposals proposalstailored tailored totocustomer customerneeds, needs,coupled coupledwithwiththe theintroduction introduction
Slide 3: 2010 summary
2010 summary 2010, 2010,the thefirst firstyear yearofofthe themedium -term business medium-term businessplan, plan,saw sawthe theintroduction introductionofofcustomer customervalue valuecreat ion creation programs programsatatoperating operatingcompanies companies CCT CCTcost costsynergies syner
Slide 4: Quantitative results for 2010
Quantitative results for 2010 ■■Achieved Achievedaarecord recordofofoperating operatingincome incomerose rose18% 18%year -on-year due year-on-year duetotostrong strongsales salesofofdomestic domesticflagship flagship lines lines(alcoholic (alcoholicbeverages beveragesandandsoft softdrinks, drinks,la
Slide 5: 2010 Review 1: Creating customer value
2010 Review 1: Creating customer value Product Productdevelopment developmentatatoperating operatingcompanies companiespredicated predicatedononcreatin g added creating addedvalue value Working Workingtogether togetheriningroup -wide sales group-wide salesfield fieldto todeliver deliversales sal
Slide 6: 2010 Review 2: Improved profitability and efficiency
2010 Review 2: Improved profitability and efficiency Improved Improvedprofitability profitabilityand andefficiency efficiencythrough throughlean leanmanagement managementtotoeliminate eliminatestrain, strain,waste wasteand and irregularities irregularities CCTs Cost Synergies Start-of-year targe
Slide 7: Business approach for 2011
Business approach for 2011 To Tocontinue continueworking workingtotocreate createmore morecompetitive competitivebusiness businessfundamentals fundamentalsininorder ordertotoachieve achievethe thetargets targetsofof the themedium -term business medium-term businessplan, plan,while whilemaking maki
Slide 8: 2011 Business plan (quantitative targets)
2011 Business plan (quantitative targets) ■To ■ Toboost boostprofit profitcreation creationon onaacash cashbasis basisthrough throughimproved improvedopera ting income operating incomeratio ratioand andcapital capitalefficiency efficiency ■To ■ Topursue pursuecustomer customervalue valuecreation cre
Slide 9: Change in operating income—breakdown
Change in operating income—breakdown ■■Domestic Domesticgrowth growth(including (includingdomestic domesticintegrated integratedsoft softdrink drinkand andph armaceutical businesses) pharmaceutical businesses)totobe be influenced influencedbybyconsolidated consolidatedearnings earningsforecast forec
Slide 10: Further profitability and efficiency improvements
Further profitability and efficiency improvements ■■The TheCCT CCTsynergy synergytargets targetsininthe themedium -term business medium-term businessplan planwill willbe beachieved achievedinin2011, 2011,and and aim aimfor forfurther furtherbenefits benefits (Unit: billion yen) 2010-2012 target in 2
Slide 11: Brand marketing of value creation tailored to customer needs
Brand marketing of value creation tailored to customer needs Strengthening Strengtheningproduct productbrands brandsthrough throughselection selectionofofleading leadingbrand brandcategories categoriesand andconcentration concentrationofof management managementresources resources Promoting Promo
Slide 12: Quantum leap in overseas—China and Southeast Asia
Quantum leap in overseas—China and Southeast Asia Using Usingthe thepartnership partnershipwith withChina ChinaResources ResourcesEnterprise Enterprisefor forestablish aaleading establish leadingpresence presenceininthe therapidly rapidly growing soft drink market in China growing soft drink marke
Slide 13: Quantum leap in overseas—Oceania
Quantum leap in overseas—China Oceania） Alcohol Alcoholbeverage beveragebusiness: business:Continue Continueand andimprove improvethe theprofitability through profitability throughfocusing focusingon onthe thegrowing growing categories categorieshand handbrands. brands. Food Food and Soft Drin
Slide 14: Kirin Holdings Singapore
Kirin Holdings Singapore Kirin KirinHoldings HoldingsSingapore Singaporehas hasresponsibility responsibilityfor forthe theentire entireSoutheast Asia Southeast Asiaregion. region.Faster Fasterdevelopment developmentofof operational operationalstructure structuretransferred transferredofofcontrol c
Slide 15: Engage in CSR activities that enhance KIRIN's coexistence with society
Engage in CSR activities that enhance KIRIN’s coexistence with society ■ The Kirin ■The KirinGroup Groupconsiders considersfulfilling fulfillingCSR CSRananintegral integralpart partofofits itsbusiness businessmanagement management,, Helping Helpingrealize realizeaasustainable sustainablesociety soci
Slide 16: 2010 Financial Results
BOULERK HM KIRIN 2010 Financial Results 15
Slide 17: Summary of 2010 financial statements
Summary of 2010 financial statements ■Achieved ■ Achievedaarecord recordofofoperating operatingincome incomerose rose18% 18%year -on-year due year-on-year duetotostrong strongsales salesofofdomestic domesticflagship flagship lines lines(alcoholic (alcoholicbeverages beveragesand andsoft softdrinks,
Slide 18: 2011 forecasts
2011 forecasts ■Operating ■ Operatingincome incomeslightly slightlyincreases, increases,NetNetincome incomelarge largerises rises ■Improved ■ Improvedprofitability profitabilityand andefficiency efficiencyatatall alloperations operationscomplem ented by complemented byhigher higherreturn returnon on
Slide 19: Operating income ratio before goodwill amortization
Operating income ratio before goodwill amortization Stronger Strongerfocus focusononqualitative qualitativeexpansion expansionsaw sawincrease increaseininoperating operatingincome incomeratio ratiobefore before goodwill goodwillamortization amortizationduring during2010 2010 2010 2010target ta
Slide 20: Improved profitability on cash basis
Improved profitability on cash basis EBITDA, EBITDA,operating operatingincome incomeprior priortotogoodwill goodwillamortization amortizationandandcash cashROE ROEcontinued continuedtotoincrease increasesteadily steadily during during2010, 2010,aaperiod periodofofqualitative qualitativeexpansion e
Slide 21: Financial strategies Cash flow
Financial strategies Generating Generatingcash cashflow flowtotoconsolidate consolidatethe thefinancial financialfundamentals fundamentals Overview of financial strategies for 2011 Operating Operating cash cash flow flow Returns Returns to to shareholders shareholders 2011 (projected): ¥217.0 bill
Slide 22: Appendices
BOLE RHIC Appendices 21
Slide 23: Segment classification under the new management approach
Segment classification under the new management approach ■■Segment Segmentclassifications classificationshave havechanged changedfrom fromoperational operationaltype typetotorreporting eporting type typeunder underthe thenew new management approach management approach ■■Operations Operationswith wit
Slide 24: Consolidated results period list
Consolidated results period list FY2009 FY2008 FY2009 Sep. Oct. Nov . Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov . Dec. Kirin Holdings Kyowa Hakko Kirin Lion Nathan National Foods San Miguel Brewery San Miguel FY2010 FY2008 FY2009 Sep. Oct. Nov . Dec. Jan. Feb. Mar. Apr. May Jun. Jul.
Slide 25: Goodwill amortization list for FY2011
Goodwill amortization list for FY2011 ①＋②＋③ Year ①＋② Depreciation of Billion yen Kirin Holdings Investment Goodwill Brand Invest- ment Amorti- Balance Year Amorti- Balance Year Amorti- Balance Year zation① remaining remaining zation② remaining remaining zation③ remaining remaining LION NATHAN LTD 19
Slide 26: Forex sensitivity (Australian dollars)
Forex sensitivity (Australian dollars) Impact Impact of of changes changes in in foreign foreign exchange exchange (AU$) (AU$) on on operating operating results results (compared (compared to to previous previous fiscal fiscal year) year) (Billion Yen) 2010 Actual 2011 Forecast Sales 42.1 (0.8) Oper
Slide 27: Lion Nathan National Foods sales and operating income (A$)
Lion Nathan National Foods sales and operating income (A$) FY2010*1 *2 FY2011*1 *3 Actual YOY change Forecast YOY change A$ million % A$ million % Alcoholic Sales beverages 2,310 3.1 2,439 5.6 Soft drinks *5 2,324 (34.7) 3,065 31.9 Total 4,635 (20.1) 5,504 18.7 Operating Alcoholic income *4 beverage
Slide 28: Product lineup / LNNF (Alcohol Beverages)
Product lineup / LNNF (Alcohol Beverages) Australia Australia New New Zealand Zealand Wine Wine 27
Slide 29: Product lineup / LNNF (Non-alcohol Beverages)
Product lineup / LNNF (Non-alcohol Beverages) Milk Milk Flavored Flavored Milk Milk Juice Juice Cheese Cheese Fresh Fresh Dairy Dairy 28
Slide 30: Expansion of non-alcohol beverage business in China
Expansion of non-alcohol beverage business in China (JV with China Resources Enterprise) Strengths of China Resources Enterprise (CRE) High profitability and growth rate of water business ・ Low cost operations ・ Strong distribution network that covers approx. 400,000 retail stores mainly in South
Slide 31: San Miguel Brewery
San Miguel Brewery In 2010, sales remained strong backed by the steady growth of the Philippine economy as well as the increased consumption during elections ＳＡＬＥＳ ＯＰＥＲＡＴＩＮＧ ＩＮＣＯＭＥ ＮＥＴ ＩＮＣＯＭＥ 20,000 6,000 7,000 18,000 2009年 2010年 2009年 2010年 2009年 2010年 5,000 6,000 16,000 14,000 5,000 4,000 12,000 4
Slide 32: Kirin Brewery Products and sales strategies in 2011
Kirin Brewery Products and sales strategies in 2011 1. Strengthening the brand through selection and concentration - Concentrating resources on growth categories and best-performing brands 2. Creating value geared towards new products, categories and business models - Keeping up to date with the nee
Slide 33: Antibody pharmaceutical pipeline (as of January 2011)
Antibody pharmaceutical pipeline (as of January 2011） Overview of Development Pipeline Therapeutic area Preclinical Ph I Ph II KW-0761(CCR4) U.S. (Ph I/II) Japan (Ph II) KRN330(A33) U.S. (Ph I/II) Cancer 10 Antibodies BIW-8962(GM2) (seven U.S. (Ph I/II) POTELLIGENT® KHK2866 antibodies, U.S. five KM-
Slide 34: Group synergies
Group synergies ■ Joint development of wine products by Lion Nathan National Foods and Mercian ・ Joint development of St Hallett Tatiara wines specifically for the Japanese marketplace through a partnership between Mercian and the famed St. Hallett winery in Australia (owned by Lion Nathan National
Kirin Holdings Company — FY2010 Earnings Presentation on 6ix