Takara Holdings Inc. · TSE:2531
Takara — Investor Presentation (December 2023)
73 slides from Takara's investor presentation, December 2023
Slide 1: Takara Holdings Inc. Information Meeting
Takara Holdings Inc. Information Meeting December 2023 Hideo Takahashi, Managing Director
Slide 2: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 3: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 4: Overview of Takara Group
Overview of Takara Group Trade name: Takara Holdings Inc. Founded: 1842 Established: September 6, 1925 exchange listings: 2531 Tokyo (Prime section) Head office: Kyoto, Japan Representative: Mutsumi Kimura, President Issued Capital: ¥13,226 million Number of employees ： 5,131 (Takara Holdings Consol
Slide 5: Business Structure of Takara Group
Business Structure of Takara Group Takara Holdings Inc. Takara Shuzo Takara Shuzo Int’l Group Takara Bio Group Domestic Business Overseas Business Biomedical business Others 5
Slide 6: Business History
Business History 1842 Founded in Takenakacho, Fushimi ：Domestic Business 1925 Founded Takara Shuzo co., ltd. ：Overseas Business (currently Takara Holdings Inc.) ：Biomedical Business 1951 Started exporting the Sho Chiku Bai brand of sake to the U.S. 1957 Entered beer business (Withdrew in 1967) 1979
Slide 7: Trend in Operating Income by business
Trend in Operating Income by business Our strength lies in the fact that we have built well-balanced business structures that are resilient to changing conditions thanks to having multiple, fully independent businesses that differ in their content and areas of development 50 （billions of yen） Takara
Slide 8: Long term Management Vision
Long term Management Vision Long term Management Vision 「TaKaRa Group Challenge for the 100 th」 A six-year management plan that defines the vision of the group and sets a milestone in FY2025 (fiscal year ending March 2026), when we will celebrate our 100th anniversary. ◆ Vision Smiles in Life ～Smile
Slide 9: Medium-Term Management Plan for 2025
Medium-Term Management Plan for 2025 Long-Term Management Plan “TaKaRa Group Challenge for the 100th（TGC100） ” (for 2020-2025) Medium-Term Management Plan for 2022 Medium-Term Management Plan for 2025 for 2020-2022 for 2023-2025 During this period, Takara Group intends to accelerate investing in Dur
Slide 10: Financial Targets of the Medium-Term Management Plan for 2025
Financial Targets of the Medium-Term Management Plan for 2025 In addition to enhancing net sales and operating income and raising the percentage of net sales from overseas operations, we aim to improve investment efficiency in the medium and long term Medium-Term Medium-Term Management Plan Manageme
Slide 11: Trends in Percentage of Net Sales from Overseas Operations
Trends in Percentage of Net Sales from Overseas Operations The percentage of net sales from overseas operations has been significantly expanding from 9.1% in the fiscal year ended March 31, 2013 to 48.3% in the fiscal year ended March 31, 2023. We aim to achieve 60% or more (and 60% or more excludin
Slide 12: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 13: Main Products of Takara Shuzo
Main Products of Takara Shuzo We manufacture and sell alcoholic beverages in a wide range of categories focusing on light-alcohol refreshers such as canned chu-hi, as well as Japanese traditional alcohol including shochu, sake and Hon- mirin Sales by Business Category (Fiscal year ended March 31,
Slide 14: Market Shares by Category
Market Shares by Category Holds top market shares in ko-type shochu, sake, Hon-mirin, and other washu categories （2022） Ko-type shochu Sake Hon-Mirin 11.9% 27.4% 57.3% No.1 No.1 No.1 Data: Ko-type shochu・Sake: Our Estimates based on figures published by Nikkan Keizai Press, Hon-Mirin: Our Estimates
Slide 15: Strengths Underpinning the Takara Brand
Strengths Underpinning the Takara Brand Engineering excellence and development capability nurtured in over 180 years of its history ◆Barrel-aged shochu in about 20,000 casks ◆Japanese sake brewing by combining (Kurokabegura in Miyazaki） traditional techniques and modern technologies (Shirakabegura i
Slide 16: Takara Shuzo: Business Strategy
Takara Shuzo: Business Strategy in the Medium-Term Management Plan for 2025 Basic We will engage in thorough brand development, policy raise profit margins, and expand Washu into global markets ◆Key Strategic Themes ●Strengthen product and brand development capabilities to substantially boost profit
Slide 17: Brand Development Policy
Brand Development Policy in the Medium-Term Management Plan for 2025 We will develop stronger brands through increased expenditure on promotion, etc. for the eight key brands ◆Eight key brands ・Gokujo <Takara Shochu> ・Takara Shochu Highball and Takara Karakuchi Zero Ball ・Sho Chiku Bai Shirakabegura
Slide 18: Initiatives of Brand Development: Takara Shochu Highball
Initiatives of Brand Development <Takara Shochu Highball> We run a BS program to convey the product’s “cheap saloons concept,” while working to create deeper fan experiences and acquire new users by featuring no carbs and strengthening sales of the alcohol content 5% series ◇Promote “cheap saloons c
Slide 19: Initiatives of Brand Development: Sho Chiku Bai Shirakabegura MIO
Initiatives of Brand Development <Sho Chiku Bai Shirakabegura “MIO” Sparkling Sake> Introduce limited products that meet various needs to MIO and MIO CLEAR, two pillar items, to revitalize the brand, while implementing initiatives to acquire demand from inbound tourists ◇ Introduce limited products
Slide 20: Initiatives of Brand Development: Takara Karakuchi Zero Ball
Initiatives of Brand Development <Takara Karakuchi Zero Ball> Appointed Shuzo Matsuoka again as the face of the product advertisement. Continuing from August, started running terrestrial TV commercials and digital advertisement in November to gain greater recognition ◇Gain greater recognition throug
Slide 21: Initiatives of Brand Development: Subaru and ISAINA
Initiatives of Brand Development <Sho Chiku Bai “Subaru”> <ISAINA> To revitalize the market of “Fragrant Washu,” we ran a newspaper advertisement of Subaru, promoted ISAINA mixed with soda water at bars and restaurants along with digital advertisement, and acquired users ◇Drive buying motives target
Slide 22: Takara Shuzo: Product development
Takara Shuzo: Business Strategy Product We will develop technologically differentiated new products with high profit margins and carefully select development them for launch. For existing products, we will implement a focused brand policy ◆Initiatives Approach and initiatives Unearth potential needs
Slide 23: Initiatives of Product development: Hon-Mirin Zeitaku Kome Koji
Initiatives of Product development Takara Hon-Mirin “Zeitaku Kome Koji” <made with 100% Japanese rice> has been released as the first product of the new brands ・Added an extra well-seasoned flavor and umami expected of users, in addition to the reassurance offered by 100% Japanese rice ・Volume and c
Slide 24: Initiatives of Product development: Existing brands
Initiatives of Product development Existing Implement focused brand maintenance and renewal, including initiatives for growth, maintenance, and termination. brands Aim to improve profit margins by adding value through enhanced quality and the revision of product specifications ◆Elimination and conso
Slide 25: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 26: Overseas Business of Takara Shuzo Int'l Group
Overseas Business of Takara Shuzo Int’l Group We develop two businesses: Overseas Alcoholic Beverages Business and Japanese Food Wholesale Business in Overseas ◆Overseas Alcoholic Beverages Business ◆Japanese Food Wholesale Business in Overseas Net Sales forecast for the fiscal year ending March, 20
Slide 27: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 28: Market Environment: Growth of Export Market
Market Environment: Growth of Export Market Exports of Japan’s agricultural, forestry and fishery products and foods are increasing every year. Growth in 2022 showed a year-on- year growth of 114.3% ◇Trends in exports of Japan’s agricultural, forestry and fishery products and foods (Billions of yen)
Slide 29: Growth of Alcoholic Beverages and Japanese Sake
Market Environment: Growth of Alcoholic Beverages and Japanese Sake Alcoholic beverages are showing the same trend and further market expansion is expected. Japanese sake category is also growing ◇Alcoholic beverages exports ◇Japanese sake exports (Billions of yen) (Billions of yen) 160 50 140 45 40
Slide 30: Growth of Japanese Restaurants Abroad
Market Environment: Growth of Japanese Restaurants Abroad The number of Japanese restaurants in the world is rapidly growing, 3.4 times larger than that 10 years ago ＜2013＞ ＜2019＞ ＜2021＞ ＜2023＞ Approx. → Approx. → Approx. → Approx. 55,000 156,000 159,000 187,000 * Upper numbers are from 2023, lower
Slide 31: Regular and Popular Japanese Food Menus
Market Environment: Regular and Popular Japanese Food Menus Salmon, tuna and young yellowtail are popular sushi toppings. In noodles, ramen became established as a regular menu, while udon is also advancing Popular Japanese Food Menus① Sushi Salmon Tuna young yellowtail Popular Japanese Food Menus ②
Slide 32: Group Company's Transaction Case
Takara Shuzo Int’l Group: Group Company’s Transaction Case Although Japanese foods are mainly used at Japanese restaurants, they are increasingly adopted by various types of cuisine, such as Western, Asian and fusion cuisine ■Composition of our customer bars and restaurants Fusion cuisine: 2% (117%)
Slide 33: Takara Shuzo Int'l Group: Business Strategy
Takara Shuzo Int’l Group: Business Strategy in the Medium-Term Management Plan for 2025 Basic We will achieve revenue growth for the whole Group through the rapid growth of the Washu and Japanese policy food wholesale business and the stable growth of Western-style liquor business ◆Business Strategy
Slide 34: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 35: Business Sites of Overseas Alcoholic Beverages Business
Business Sites of Overseas Alcoholic Beverages Business We have manufacturing sites in the U.S., China, the U.K., and Canada 35
Slide 36: No.1 Company in Overseas Market for Sake
No.1 Company in Overseas Market for Sake Hold No.1 position in the overseas market for sake in terms of a total of local production and export quantity ◇Overseas production and export quantity of major sake manufacturers (2022) Takara The Company Company A Company Ｂ Company Ｃ Company Ｄ Company Ｅ Com
Slide 37: Overseas Alcoholic Beverages Business (Washu)
Overseas Alcoholic Beverages Business (Washu) We manufacture Sho Chiku Bai and other traditional washu, including sake, mirin and plum brandy, in the U.S. and China. Leveraging local production, we also develop innovative, exclusive overseas products that address local market environment and needs ◇
Slide 38: Initiatives of Innovative SAKE brewing
Overseas Alcoholic Beverages Business (Washu) : <Initiatives of “Innovative SAKE” brewing> Invested in WAKAZE and acquired 80% of the shares issued and outstanding of Ontario Limited in Canada. By combining the realm of “Innovative SAKE” brewing to that of “traditional washu” brewing, we create new
Slide 39: Overseas Alcoholic Beverages Business (Western-style liquor)
Overseas Alcoholic Beverages Business (Western-style liquor) We aim to boost the value of our brands, such as Tomatin and Blanton’s, and achieve stable earnings growth ◇The Tomatin Distillery ◇Age International （Schotland, U.K.） （Kentucky, U.S.） IWSC2023 Silber Award ◆Net Sales ◆Net Sales (Millions
Slide 40: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 41: Business Model of Japanese Food Wholesale Business
Business Model of Japanese Food Wholesale Business Our Japanese Food Wholesale Business imports products via routes involving specialized trading companies or through direct trading, and sell them to local restaurants and supermarkets Products we handle (Produced in Japan/other countries) Wholesale
Slide 42: Trend in Net Sales of Japanese Food Wholesale Business
Trend in Net Sales of Japanese Food Wholesale Business Established a worldwide network since its entry to the market in the fiscal year ended March 31, 2011, and showing a rapid growth Minamoto ◇Trend in net sales of Japanese Food Wholesale Business Wholesale Yamasho （Billions of yen） 160 Takara Shu
Slide 43: Business Sites of Japanese Food Wholesale Business
Business Sites of Japanese Food Wholesale Business Leveraging our worldwide network in the U.S., Europe and Australia to create synergy by way of sharing information on popular items and enhancing procurement capability 43
Slide 44: Initiatives in North America area
Japanese Food Wholesale Business : <Initiatives in North America area> The addition of Yamasho, Inc., K Sea Trading and Minamoto Wholesale Limited, LLC to the Group has expanded our network from 9 sites in 8 states to 13 sites in 11 states ・Number of sites as of December 2022: ・ Number of sites as o
Slide 45: Strengths of Japanese Food Wholesale Business
Strengths of Takara Group’s Japanese Food Wholesale Business The Takara Group has its origins in production and sales of alcoholic beverages. As we boast know-how in alcoholic beverage sales and a wide variety of product lineup, bars and restaurants account for a large proportion of customers ◆Compo
Slide 46: Strengths of Japanese Food Wholesale Business: Washu proposals
Strengths of Takara Group’s Japanese Food Wholesale Business We have high capability in proposing washu, with proposals offered by sommeliers specialized in washu and tasting seminars. Mutual Trading Co., Inc. has the No.1 sales in the U.S. sake market Tazaki Foods FOODEX Mutual Trading Section of l
Slide 47: Strengths of Japanese Food Wholesale Business: Product lineup
Strengths of Takara Group’s Japanese Food Wholesale Business In addition to rice, seasonings and processed products like ramen, along with seafood and meats, we offer a wide variety of lineup covering plates, take-out containers, sustainability-aware containers, vegan foods and allergen-free product
Slide 48: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 49: Collaboration with Takara Shuzo
Collaboration with Takara Shuzo We will gain maximum leverage from the engineering excellence and brand strength of Takara Shuzo and the Japanese food wholesale network of Takara Shuzo Int’l Group to bolster global awareness and acceptance of Washu and Japanese food through the Takara Group’s unique
Slide 50: Overseas Washu: Product development for export
Overseas Alcoholic Beverages Business (Washu) : <Initiatives of Product development> To nurture a high-quality brand image globally, launch high-added- value products from Sho Chiku Bai brand in overseas markets Takara Takara Shuzo Shuzo Int’l Group ◇Japanese sake exclusively for export For Hong Kon
Slide 51: Overseas Washu: TaKaRa CHU-HI for the U.S.
Overseas Alcoholic Beverages Business (Washu) : <Initiatives of Product development> In the U.S., which is the largest ready-to-drink products market, we released TaKaRa CHU-HI, a canned chu-hi product that meets the local needs Takara Takara Shuzo Shuzo Int’l Group A Japanese-born Chu-Hi with an au
Slide 52: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 53: Business overview of Takara Bio Group
Business overview of Takara Bio Group Our Bioindustry Business, which forms the bases for our technologies and profits, has biotech researchers around the world as its customers Reagents Instruments CDMO Reagent Kits PCR Instruments Gene analysis services RetroNectin® Single cell analysis system Cel
Slide 54: Providing PCR Reagents to Various Sectors
Providing PCR Reagents to Various Sectors Since the acquisition of exclusive domestic sales rights for PCR system in 1988, Takara Bio’s PCR reagents have been used for viral and bacterial detection in a range of fields from food and environment to application in clinical practices Tests of infectiou
Slide 55: Overseas Development of Reagent Business
Overseas Development of Reagent Business A “glocal” system to build a sales network across the globe by developing manufacturing sites in India, the U.S. and Europe, in addition to China and Japan Takara Bio Europe S.A.S. (96) ※number in () is the number of employees Takara Bio UK (6) Takara Biomedi
Slide 56: Market Environment: Positioning of Cellular Medicine and Gene Therapies
Market Environment: Positioning of Cellular Medicine and Gene Therapies Cellular medicine and gene therapies are positioned as focused investment areas in the government’s basic growth strategies ◇Basic Policy on Economic and Fiscal Management and Reform 2022 ◇The grand design and action plan for th
Slide 57: Market Environment: Market Size of Gene Therapies Area
Market Environment： Market Size of Gene Therapies Area Especially high growth rates are expected in the market size of gene therapies area Modality (therapeutic Global market size Growth rate approach) 2020 2030 in 10 years 48,000 55,000 Small molecule drugs 15% billion yen billion yen 140 2,000 Ex
Slide 58: Gene and Cell Processing Center
Gene and Cell Processing Center Takara Bio head office: One of the largest CDMO facilities in Japan for cellular medicine and gene therapeutic medicine Center for Gene and Cell Processing (CGCP) Building 2 Operation started in January 2020 Approx. 14,500 m2 Manufacture and quality inspection of gene
Slide 59: Gene and Cell Processing Center III Building Plan
Gene and Cell Processing Center Ⅲ Building Plan Gene and Cell Processing Center Ⅲ is scheduled to be completed in 2027 as a “dual-use” facility for large-scale manufacturing that will exceed the existing building 59
Slide 60: Business strategy
Business strategy Aim to become a global platform provider of infrastructure for the life science industry 60
Slide 61: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 62: Sustainability
Sustainability Long-term Management Vision「TaKaRa Group Challenge for the 100 th」 Vision ～Smiles in Life～ Contribute to the realization of healthy and fulfilling daily lives that are filled with connections between people and people’s smiles. It is necessary to take greater initiatives to resolve va
Slide 63: CO2 emissions reduction
CO2 emissions reduction Formulating a roadmap to reduce CO₂ emissions 2030 • Reduce CO₂ emissions at Takara Shuzo and Takara Shuzo International Group production sites by 46% compared with 2019/3 • Reduce CO₂ emission intensity (CO₂ emissions per net sales) at Takara Bio Group by 50% compared with 2
Slide 64: Switching to environmentally conscious product packages
Switching to environmentally conscious product packages Takara Bio Group adopted paper boxes or pouches made of aluminum-free PET film for packaging reagents, its mainstay products Shifted to packages using Switched from one side aluminum pouch FSC-certified materials to aluminum-free pouch and vege
Slide 65: Disclosure of alcohol content and human rights due diligence
Disclosure of the amount of alcohol contained, Implementing human rights due diligence processes Working to add information on the amount of alcohol contained in our products for consumers. Implementing human rights due diligence processes, including interviews with suppliers ◆Disclosure of the amou
Slide 66: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 67: Financial results for the six months ended September 30, 2023
Financial results for the six months ended September 30, 2023 ◆Financial results for the six months ended September 30, 2023 （Millions of Yen） Actual Change YOY(%) Net Sales 163,172 ▲1,107 ▲0.7 Oparating Income 12,464 ▲7,150 ▲36.5 Ordinary Income 13,032 ▲6,940 ▲34.7 Net Income attributable to owners
Slide 68: Financial forecasts for the fiscal year ending March 31, 2024
Financial forecasts for the fiscal year ending March 31, 2024 announced November 9, 2023 ◆Financial forecasts for the fiscal year ending March 31, 2024 （Millions of Yen） Forecast Change YOY(%) Net Sales 341,000 ▲9,665 ▲2.8 Oparating Income 21,700 ▲16,245 ▲42.8 Ordinary Income 22,500 ▲16,206 ▲41.9 Ne
Slide 69: Trends in Operating income (Takara Shuzo)
Trends in Operating income（Takara Shuzo） While maintaining profit levels, promote brand development by increasing advertising expenses ◆Trends in operating income and advertising expenses (Billions of yen) 6 5.3 5 4.8 4.8 4.1 4.1 4 3.5 3 2.6 2.3 2 2 1.8 1 0 2020/3 2021/3 2022/3 2023/3 2024/3 Oparati
Slide 70: Trends in Operating income (Takara Shuzo Int'l Group)
Trends in Operating income（Takara Shuzo Int’l Group） Despite some impact from lockdowns of major overseas cities during the pandemic, operating income grew significantly due to a rapid recovery in bars/restaurants market and wider acceptance of Japanese food ◆Trends in operating income (Billions of
Slide 71: Contents
Contents １．Overview of Takara Group ２．Domestic Business ３．Overseas Business 3-1. Market Environment 3-2. Overseas Alcoholic Beverages Business 3-3. Japanese Food Wholesale Business in Overseas Markets 3-4. Collaboration with Takara Shuzo ４．Bio Business ５．Sustainability ６. Financial results for the s
Slide 72: Shareholder Return
Shareholder Return Financial policy ＜Medium-Term Management Plan for 2025＞ 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 bas
Slide 73: 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
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