Kirin Holdings Co. Ltd. · TSE:2503

Kirin — Q2 2011 Earnings Presentation

26 slides from Kirin's earnings presentation, Aug 5, 2011

  1. Slide 1: Second Quarter Financial Results for the Year Ending December 31, 2011

    Second Quarter Financial Results for the Year Ending December 31, 2011 August 5, 2011 Kirin Holdings Company, Limited 1

  2. Slide 2: Management summary

    Management summary  1H saw a year-on-year increase in earnings. We will strengthen 2H activities aimed at securing growth in the next term and ensure profitability on par with initial forecast for full business year.  During 1H, amid dramatic changes in the business environment, not least of which

  3. Slide 3: Second-quarter results

    Second-quarter results  Operating income, ordinary income and net income increased significantly year-on-year. Despite a decrease in revenue due in part to the impact of the earthquake, sales made a steady recovery in our domestic alcohol beverages and non-alcohol beverages businesses, and sales re

  4. Slide 4: Full-year forecast

    Full-year forecast  Although decreased sales due to the impact of the earthquake and the environmental change to our Australian operations are figured in the full-year forecast. We will ensure profitability on par with initial forecast by further strengthening 2H sales and cost controls. We will al

  5. Slide 5: Kirin's state of recovery from the Great East Japan Earthquake

    Kirin’s state of recovery from the Great East Japan Earthquake, and impact on our business results  Our product supply system has already returned to a level on par with before the earthquake. We are confident that operations at the Sendai Plant can be returned to normal, and we have already ascert

  6. Slide 6: Domestic alcohol beverages business

    Domestic alcohol beverages business  Sales of beers have been steadily recovering since April. During 2H, we will work to further strengthen our brands and create demand. 2Q Full-year forecast (midterm revision) Business performance Billion yen YoY change (%) Billion yen YoY change (%) Sales 347.0

  7. Slide 7: Domestic non-alcohol beverages business

    Domestic non-alcohol beverages business  Continued revenue structure reforms, and sales were strong, particularly for our core brands . During the 2H, will further strengthen sales, such as through the release of new products which had been delayed because of the earthquake. 2Q Full-year forecast (

  8. Slide 8: Overseas beverages business

    Overseas beverages business Lion’s alcohol beverages business continued to invest in its high potential brands to drive sustainable growth, and soft drinks and foods business accelerated optimisation and efficiency to deliver sustainable results over the long term. Lion reviewed its annual target ac

  9. Slide 9: Pharmaceuticals and biochemicals business

    Pharmaceuticals and biochemicals business  We have revised our full-year forecast upward, reflecting the strong 1H results. 2Q Full-year forecast (midterm revision) Business performance Billion yen YoY change (%) Billion yen YoY change (%) Net sales 186.3 (8.4) 342.0 (17.3) Kyowa Hakko Kirin Operat

  10. Slide 10: Efforts for the challenges presented in the Medium-Term Business Plan

    Efforts for the challenges presented in the Medium-Term Business Plan  Continued efforts aimed at boosting profitability and efficiencies, and moved toward further increases in outcomes by fully achieving our initial forecasts CCT cost synergies Asset liquidation (Unit: billion yen) Progress rate (

  11. Slide 11: International integrated beverages group strategy: China and Southeast Asia

    International integrated beverages group strategy: Initiatives in China and Southeast Asia [Singapore] [Singapore] [China] [China] Kirin Kirin Holdings Holdings Singapore Singapore China China Resources Resources Enterprise Enterprise Fraser Fraser and and Neave Neave Kirin Kirin Beverage Beverage K

  12. Slide 12: Consolidation of Schincariol - Strategic Rationale

    Consolidation of Schincariol -Strategic Rationale- While Asia and Oceania remain Kirin’s most important regions, this transaction provides us with a solid base in a promising emerging market and supports our international integrated beverages group strategy  Acquire an operational base in the large

  13. Slide 13: 2011 Financial strategies: Cash flow

    2011 Financial strategies  Asset liquidation has been aggressively promoted and 1H exceeded the initial target. D/E ratio after consolidation of Schincariol expected to be within 1.0x. Operating Operating cash cash flow flow Returns Returns to to shareholders shareholders 2011 (initial projected):

  14. Slide 14: Appendix

    Appendix  2010-2012 medium-term business plan indices  2011 sales & operating income by segment  Breakdown of goodwill: 2011 full-year forecast  Individual consolidated periods  Kirin Brewery （1H sales performance/full-year forecast , Changes in operating income ）  Mercian (1H sales performanc

  15. Slide 15: Medium-term business plan indices

    Medium-term business plan indices 2011 2011 2011 2012 2Q Full-year forecast Full-year forecast End-of-year (actual) (revised 8/5) (initial) target Excluding liquor tax ¥857.1 billion ¥1,782.0 billion ¥1,810.0 billion ¥2,130.0 billion Sales Bottom figure: Year-on-year 0.1% (2.9)% (1.4)% — change (%)

  16. Slide 16: 2011 sales & operating income by segment

    2011 sales & operating income by segment Sales Operating income Annual target Annual target Annual target Annual target 2Q 2Q (revised) (initial) (revised) (initial) Domestic alcohol beverages 392.3 878.0 908.0 28.8 70.0 73.5 business (6.4) (5.4) (2.2) 29.0 (4.4) 0.4 Domestic non-alcohol beverages 1

  17. Slide 17: Breakdown of goodwill: 2011 full-year forecast

    Breakdown of goodwill: 2011 full-year forecast (Unit: billion yen) Total amortization of goodwill, etc. (1) + (2) *1 Year acquired Goodwill Brand Unamortized Years remaining Amortization (2) *2 Unamortized Amortization (1) Years remaining balance balance Lion Nathan 1998 2.5 16.8 7 6.1 7.2 11 8.7 Li

  18. Slide 18: Individual consolidated periods

    Individual consolidated periods  2009 2008 2009 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  2010 2009 2010 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Kirin Holdings K

  19. Slide 19: Kirin Brewery

    Kirin Brewery 1. 1H sales performance/full-year forecast Jan-Mar Apr-Jun Jan-Jun Annual target Thousand Year-on-year Thousand Year-on-year Thousand Year-on-year Thousand Year-on-year KL (%) KL (%) KL (%) KL (%) Total 385 ( 9.0) 529 (2.4) 914 (5.3) 2,054 (4.6) Beer 131 ( 8.1) 179 (4.3) 310 (6.1) 722

  20. Slide 20: Mercian

    Mercian 1. 1H sales performance/annual target Jan-Mar Apr-Jun Jan-Jun Annual target Year-on-year Year-on-year Year-on-year k case Year-on-year Total 101% 105% 103% 595 106% Table wines 104% 111% 111% 356 108% Fine wines 96% 97% 97% 239 103% Domestic 102% 106% 104% Imported 81% 89% 85% 2. Other infor

  21. Slide 21: Kirin Beverage

    Kirin Beverage 1. 1H sales performance/annual target Jan-Mar Apr-Jun Jan-Jun Annual target (revised) 10，000 YonY 10,000 Year-on- 10,000 Year-on- 10,000 Year-on- year year year Total 3,501 98% 4,401 97% 7,902 98% 17,660 101% Black tea 990 105% 1,258 119% 2,248 112% 4,680 105% Coffee 719 91% 860 1

  22. Slide 22: Domestic alcohol and non-alcohol beverages product information

    Domestic alcohol beverages/Domestic non-alcohol beverages Product information １．Main new and redesigned products in 2H Kirin Brewery Kirin Beverage Beer RTD ２．Main Mercian products (table wines) Domestic Overseas 22

  23. Slide 23: Key production bases in Japan

    Key production bases in Japan (alcohol/non-alcohol beverages) Kirin Brewery plants Other alcohol beverages (production capacity (KL)) 10. Mercian Fujisawa plant 1. Chitose 11. Kirin Distillery, Fuji-Gotemba Distillery 2. Sendai 12. Château Mercian 3. Toride 1 13. Mercian Yatsushiro Plant 4. Yokohama

  24. Slide 24: LION: 2Q actual results and drivers for forecast revision

    LION: 2Q actual results and main drivers for revision of full-year forecasts 2011 2Q Actual [local currency basis (consolidated, after reclassification) ] Unit: AUD million Operating income Oct 2010 （Before goodwill and to YoY change Cause of change brand amortization） Mar 2011 Beer, Spirits and win

  25. Slide 25: Antibody pharmaceutical pipeline

    Antibody pharmaceutical pipeline (as of August 2, 2011) Overview of Development Pipeline Therapeutic Ph II Filed Preclinical Ph I area KW-0761(CCR4) ATL U.S. (Ph I/II) Japan (Ph II) Japan ATL; Adult T-cell Leukemia-Lymphoma Eleven KRN330(A33) Antibodies U.S. (Ph I/II) Cancer BIW-8962(GM2) (seven U.S

  26. Slide 26: San Miguel Brewery

    San Miguel Brewery Sales Operating income Net income 20,000 2009 2010 2011 6,000 2009 2010 2011 7,000 2009 2010 2011 18,000 6,000 16,000 5,000 5,000 14,000 4,000 12,000 4,000 10,000 3,000 3,000 8,000 2,000 6,000 2,000 1,000 4,000 1,000 2,000 0 0 0 -1,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -2,000 (U

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