Takara Holdings Inc. · TSE:2531
Takara — FY2022 Earnings Presentation
59 slides from Takara's earnings presentation, May 16, 2023
Slide 1: Financial results for the fiscal year ending March 31, 2023 and medium-term management plan briefing
Financial results for the fiscal year ending March 31, 2023 and medium-term management plan briefing May 16, 2023 Takara Holdings Inc.
Slide 2: Contents
Contents Ⅰ. Financial results for the fiscal year ending March 31, 2023 Ⅱ. Medium-Term Management Plan for 2022 Review Ⅲ. Medium-Term Management Plan for 2025 １．Medium-Term Management Plan for 2025 Overview ２．Establish and strengthen Takara Group's two unique business models ３．Takara Shuzo ４. Takara
Slide 3: Ⅰ. Financial results for the fiscal year ending March 31, 2023
Ⅰ. Financial results for the fiscal year ending March 31, 2023
Slide 4: Takara Holdings (Consolidated) Financial Performance: Statements of Income
Takara Holdings (Consolidated) Financial Performance for the fiscal year ending March 31, 2023 Consolidated Statements of Income （Millions of Yen） Effect of change '23/3 Change from '22/3 in exchange rates on net sales Actual Change YOY(%) Change Takara Shuzo 122,921 3,211 +2.7 ー Takara Shuzo Intern
Slide 5: Consolidated Balance Sheets
Takara Holdings (Consolidated) Financial Performance for the fiscal year ending March 31, 2023 Consolidated Balance Sheets （Millions of Yen） '22/3 '23/3 Change '22/3 '23/3 Change Current assets 232,323 241,513 9,189 Current liabilities 79,151 67,454 (11,696) Cash and deposits 80,445 96,820 16,375 No
Slide 6: Consolidated Statements of Cash Flows
Takara Holdings (Consolidated) Financial Performance for the fiscal year ending March 31, 2023 Consolidated Statements of Cash Flows （Millions of Yen） '22/3 '23/3 Change Actual Actual cash flows from operating activities 16,376 45,478 29,101 cash flows from investing activities (10,399) (10,474) (74
Slide 7: Takara Shuzo Financial Performance
Takara Shuzo Financial Performance for the fiscal year ending March 31, 2023 Statements of Income （Millions of Yen） '23/3 Change from '22/3 Actual Change YOY(%) Shochu 36,597 (1,337) (3.5) Sake 12,145 (658) (5.1) Light-alcohol refreshers 40,069 2,392 +6.3 Other liquors 5,328 (138) (2.5) Hon Mirin 9,
Slide 8: Analysis of the Change in Operating Income (Takara Shuzo)
Analysis of the Change in Operating Income for the fiscal year ending March 31, 2023 (Takara Shuzo) Income increased, with the impact of hikes in raw material and fuel prices and the effect of exchange rate movements offset by cost reductions and price revisions ◆Year-on-year change in operating inc
Slide 9: Takara Shuzo Int'l Group Financial Performance
Takara Shuzo Int’l Group Financial Performance for the fiscal year ending March 31, 2023 Statements of Income （Millions of Yen） Effect of change '23/3 Change from '22/3 in exchange rates on net sales Actual Change YOY(%) Change from '22/3 Overseas Alcoholic beverages business 18,253 4,189 ＋29.8 2,40
Slide 10: Analysis of the Change in Operating Income (Takara Shuzo Int'l Group)
Analysis of the Change in Operating Income for the fiscal year ending March 31, 2023 (Takara Shuzo Int’l Group) Gross profit increased due to an increase in sales. This offset a rise in selling, general and administrative expenses to achieve an increase in income ◆Year-on-year change in operating in
Slide 11: Ⅱ. Medium-Term Management Plan for 2022 Review
Ⅱ. Medium-Term Management Plan for 2022 Review
Slide 12: Positioning of Medium-Term Management Plan for 2022
Positioning of Medium-Term Management Plan for 2022 Long-Term Management Plan “TaKaRa Group Challenge for the 100th（TGC100） ” (for 2020-2025) Vision ～Smiles in Life～ Medium-Term Management Plan for 2022 Medium-Term Management Plan for 2025 for 2020-2022 for 2023-2025 During this period, Takara Group
Slide 13: Trend in Net Sales by Business
Medium-Term Management Plan for 2022: Trend in Net Sales by Business Net Sales increased for the whole Takara Group, led by the Takara Shuzo Int’l Group and Takara Bio Group, even after eliminating the effect of COVID-19-related sales in the Takara Bio Group. Takara Bio (Billions of yen) Group COVID
Slide 14: Operating Income by Business
Medium-Term Management Plan for 2022: Operating Income by Business Income rose across all businesses. We achieved an especially large increase in the Takara Shuzo Int’l Group and Takara Bio Group, our growth businesses. ‘20/3 ‘23/3 Takara Shuzo 4.1 billion yen 4.8 billion yen Takara Shuzo Int’l Grou
Slide 15: Results on Financial Targets
Medium-Term Management Plan for 2022: Results on Financial Targets COVID-19 had a significant effect on business performance, but we achieved all of our financial targets. We also exceeded our long-term management plan targets. Medium-Term Management Plan Long-term for 2022 management ‘23/3 Financia
Slide 16: Achievements and Issues by Business
Medium-Term Management Plan for 2022: Achievements and Issues by Business Achievements Issues • Implemented price revisions and • Improve the product mix by developing engaged in companywide cost and fostering hit products and cultivating Takara reduction efforts, keeping cost hikes existing brands
Slide 17: Sustainability Initiatives
Sustainability Initiatives We have established and announced the Sustainability Policy and Sustainability Vision, presenting the Ten Important Issues (Materiality) and our policy to engage with these issues. We worked on initiatives for each materiality. May 2020: Announced the Takara Group Sustaina
Slide 18: Ⅲ. Medium-Term Management Plan for 2025: Overview
Ⅲ. Medium-Term Management Plan for 2025 １. Medium-Term Management Plan for 2025 Overview
Slide 19: Positioning of Medium-Term Management Plan for 2025
Positioning of Medium-Term Management Plan for 2025 Long-Term Management Plan “TaKaRa Group Challenge for the 100th（TGC100） ” (for 2020-2025) Vision ～Smiles in Life～ Medium-Term Management Plan for 2022 Medium-Term Management Plan for 2025 for 2020-2022 for 2023-2025 During this period, Takara Group
Slide 20: Corporate Management Objectives
１. Medium-Term Management Plan for 2025 Overview ◆Corporate Management Objectives During this period, Takara Group intends to accelerate investing in businesses in growth and high-priority fields to increase the Group’s enterprise value The Takara Group intends to accelerate investing in businesses
Slide 21: Financial Targets
１. Overview of the Medium-Term Management Plan for 2025 ◆Financial Targets 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
Slide 22: Five Key Strategic Initiatives
１. Overview of the Medium-Term Management Plan for 2025 ◆Five Key Strategic Initiatives ①Invest in businesses in growth and high-priority fields and ensure ROIC-driven corporate management ②Establish and strengthen the Takara Group’s two unique business models ③More aggressively invest in the Group’
Slide 23: Cash flow plan (3-year cumulative)
１. Overview of the Medium-Term Management Plan for 2025 ◆Cash flow plan (3-year cumulative) We aim to enhance corporate value by implementing investment in businesses in growth and high-priority fields on a level exceeding cash flow from operating activities. （億円） (Billions of yen) Takara Shuzo Taka
Slide 24: 2. Establish and strengthen Takara's unique business models
Ⅲ. Medium-Term Management Plan for 2025 2. Establish and strengthen Takara's unique business models
Slide 25: Establish and strengthen Takara Group's two unique business models
2. Establish and strengthen Takara Group's two unique business models Takara Shuzo/Takara Shuzo Int’l Group and Takara Bio Group will each establish and strengthen unique business models that achieve both business enhancement and social sustainability. Takara Shuzo and Takara Bio Group Takara Shuzo
Slide 26: Expand global sales of Washu and Japanese food
2. Establish and strengthen Takara Group's two unique business models Expand Takara’s global sales of Washu and Japanese food by Takara Shuzo/Takara Shuzo Int’l Group Takara Shuzo and Takara Bio Group Takara Shuzo Int’l Group [Washu and Japanese food market] [Life science industry] Perform the role
Slide 27: Awareness and acceptance of Washu and Japanese food
2. Establish and strengthen Takara Group's two unique business models 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
Slide 28: Boost presence of Takara Bio Group in life science industry
2. Establish and strengthen Takara Group's two unique business models Further boost the presence of the Takara Bio Group in the life science industry Takara Shuzo and Takara Bio Group Takara Shuzo Int’l Group [Washu and Japanese food market] [Life science industry] Perform the role of a prominent pl
Slide 29: Platform provider for the global life science industry
2. Establish and strengthen Takara Group's two unique business models We will strengthen our development and manufacturing capabilities to accelerate our business expansion into clinical and drug-discovery areas. We will provide techniques, products and services underpinned by Takara Bio’s unique te
Slide 30: ３. Takara Shuzo
Ⅲ. Medium-Term Management Plan for 2025 ３. Takara Shuzo
Slide 31: Takara Shuzo: Business Strategy
3. Takara Shuzo: Business Strategy Basic We will engage in thorough brand development, raise profit margins, policy and expand Washu into global markets. Medium-Term Management Plan targets: Net sales of 123.2 billion Operating income of 5.0 billion yen ●Strengthen product and brand ・Operating incom
Slide 32: Takara Shuzo: Brand development
3. Takara Shuzo: Business Strategy Brand We will develop stronger brands through increased expenditure on development promotion, etc. for the eight key brands. ◆Eight key brands ◆Key brand development expenditure plan (Billions of yen) 7.0 7.0 6.3 6.0 5.5 4.9 5.0 4.0 3.0 ・Gokujo <Takara Shochu> ・Tak
Slide 33: Takara Shuzo: Product development
3. Takara Shuzo: Business Strategy We will develop technologically differentiated new products with high Product development profit margins and carefully select them for launch. For existing products, we will implement a focused brand policy. ◆Initiatives Approach and initiatives Unearth potential n
Slide 34: Takara Shuzo: Expanding exports
3. Takara Shuzo: Business Strategy We will collaborate with the Takara Shuzo Int’l Group to expand exports, Expanding exports centered on developing Sho Chiku Bai Shirakabegura “MIO” Sparkling Sake into global brand. ◆Initiatives Approach and initiatives Develop Sho Chiku Bai Shirakabegura Develop p
Slide 35: Takara Shuzo: Investment plan
3. Takara Shuzo: Business Strategy We plan to invest in safe and secure product manufacturing, based on Investment plan our experience of a voluntary product recall in 2021, and invest to reduce CO₂ emissions. (Billions of yen) Planned investment over the 3 years of the Investments Medium-Term Manag
Slide 36: ４. Takara Shuzo Int'l Group
Ⅲ. Medium-Term Management Plan for 2025 ４. Takara Shuzo Int’l Group
Slide 37: Takara Shuzo Int'l Group: Business Strategy
4. Takara Shuzo Int’l Group: Business Strategy We will achieve revenue growth for the whole Group through the rapid Basic policy growth of the Washu and Japanese food wholesale business and the stable growth of Western-style liquor business. ◆Business Medium-Term Management Plan targets: Net sales o
Slide 38: Overseas Alcoholic Beverages Business (Washu)
4. Takara Shuzo Int’l Group: Business Strategy Overseas Alcoholic Beverages Business (Washu) Business We will aim for the rapid growth of the Washu business, maximizing Policy synergies between Takara Shuzo and overseas Group companies. ●Develop innovating products and new products capturing local n
Slide 39: Japanese Food Wholesale Business: North America
4. Takara Shuzo Int’l Group: Business Strategy Japanese Food Wholesale Business We will promote the diversification of sales channels, pioneer new Business areas, and develop and cultivate differentiated products to achieve Policy rapid growth significantly exceeding market growth. Area strategy: No
Slide 40: Japanese Food Wholesale Business: Europe
4. Takara Shuzo Int’l Group: Business Strategy Japanese Food Wholesale Business Area strategy: Europe ●Firmly maintain our top market share in Europe and aim for further growth ・Expand our access and capture demand from independent bars and restaurants FOODEX SAS (France) ・Develop the retail and com
Slide 41: Japanese Food Wholesale Business: Procurement
4. Takara Shuzo Int’l Group: Business Strategy Japanese Food Wholesale Business Procurement: Tokyo Mutual Trading Co., Ltd. ●Aim for the stable supply of focus products (Japanese sake, yellowtail, Wagyu beef, etc.) and the reduction of purchase Tokyo Mutual Trading Co., Ltd. (display booth) costs ●U
Slide 42: Overseas Alcoholic Beverages Business (Western-style liquor)
4. Takara Shuzo Int’l Group: Business Strategy Overseas Alcoholic Beverages Business (Western-style liquor) Business We aim to boost the value of our brands, such as Tomatin and policy Blanton’s, and achieve stable earnings growth. ●Strengthen sales of high-value-added bottle products, particularly
Slide 43: Takara Shuzo Int'l Group: Investment plan
4. Takara Shuzo Int’l Group: Business Strategy We plan to invest actively in initiatives such as the expansion of our Japanese food wholesale network and the extension of our warehousing function. ◆Investment plan (Billions of yen) Planned investment over the 3 years of Investments the Medium-Term M
Slide 44: Human Capital, Sustainability, Financial and Shareholder Return Policies
Ⅲ. Medium-Term Management Plan for 2025 ５．Human Capital Management ６．Sustainability ７．Financial and Shareholder Return Policies ８．Medium-Term Management Plan for 2025 Systematic Chart
Slide 45: Human Capital Management
5. Human Capital Management <Takara Group Human Resources Policy> In the Takara Group, we take the perspective that people are indispensable assets and our employees are “human resources.” While we believe that a company is an organization comprising all of its individual employees and that the coll
Slide 46: Sustainability
6. Sustainability We will promote compliance with global disclosure standards and more substantial initiatives. We will work to resolve social issues through our business activities and enhance the value chain that supports resolving social issues. ◆Stronger actions to be taken Perspective Actions 【
Slide 47: Resolving social issues through products and services
6. Sustainability ◆Resolving social issues through the business of providing products and services Broad-based support for life science research Activities using showrooms and sake and the life science industry through the sommeliers to boost awareness and Takara Bio Group and the development of app
Slide 48: Enhancing the value chain that supports resolving social issues
6. Sustainability ◆Enhancing the value chain that supports resolving social issues Implemented human rights Added information on the Installed solar panels at due diligence processes amount of alcohol contained Kurokabegura in Miyazaki based on the Guiding in the Takara Shochu Highball (Takanabe, Mi
Slide 49: Financial and Shareholder Return Policies
7. Financial and Shareholder Return Policies Financial policy 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 based on the mai
Slide 50: Medium-Term Management Plan for 2025 Systematic Chart
8. Takara Group Medium-Term Management Plan for 2025 Systematic Chart（Vision realization process） 50
Slide 51: Ⅳ. Financial forecasts for the fiscal year ending March 31, 2024
Ⅳ. Financial forecasts for the fiscal year ending March 31, 2024
Slide 52: Consolidated Financial forecasts: Statements of Income
Takara Holdings (Consolidated) Financial forecasts for the fiscal year ending March 31, 2024 Consolidated Statements of Income （Millions of Yen） Effect of change '24/3 Change from '23/3 in exchange rates on net sales Forecast Change YOY(%) Change Takara Shuzo 123,526 604 +0.5 － Takara Shuzo Internat
Slide 53: Change in Operating Income by Business
Change in Operating Income for the fiscal year ending March 31, 2024 by Business By business, operating income is forecast to increase for the Takara Shuzo Int’l Group but decrease for Takara Shuzo and the Takara Bio Group, leading to an overall decrease in operating income for the Takara Group. ◆Ye
Slide 54: Cash Flow Plan and Financial Targets
Takara Holdings (Consolidated) Cash Flow Plan and Financial Targets for the fiscal year ending March 31, 2024 ◆Cash Flow Plan (Billions of yen) Takara Shuzo Takara Holdings Takara Bio Takara Shuzo International (Consolidated) Group Group Ⅰ Operating CF 23.0 5.9 8.3 7.2 Ⅱ Investment CF (31.8) (4.9) (
Slide 55: Takara Shuzo Financial forecasts
Takara Shuzo Financial forecasts for the fiscal year ending March 31, 2024 Statements of Income （Millions of Yen） '24/3 Change from '23/3 Forecast Change YOY(%) Shochu 33,401 (3,196) (8.7) Sake 11,518 (627) (5.2) Light-alcohol refreshers 42,391 2,321 +5.8 Other liquors 5,039 (289) (5.4) Hon Mirin 9,
Slide 56: Takara Shuzo Int'l Group Financial forecasts
Takara Shuzo Int’l Group Financial forecasts for the fiscal year ending March 31, 2024 Statements of Income （Millions of Yen） Effect of change '24/3 Change from '23/3 in exchange rates on net sales Forecast Change YOY(%) Change from '23/3 Overseas Alcoholic beverages business 21,106 2,852 +15.6 788
Slide 57: Forecast Trend in Consolidated Operating Income
Takara Holdings: Forecast Trend in Consolidated Operating Income We will accelerate investment in growth and high-priority fields, firmly establish Takara’s two unique and inimitable business models of “bolstering the global awareness and acceptance of Japanese food culture” and “performing the role
Slide 58: Smiles in Life
We will progressively achieve our vision of “Smiles in Life ~ Smiles are Life’s Treasures ~” by contributing to a well-balanced diet for people around the world through Washu and Japanese food, and by supporting healthy lifestyles through our biomedical businesses. Contribute to a Create value in we
Slide 59: 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