Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Q3 2018 Earnings Presentation
18 slides from Kirin's earnings presentation, Nov 6, 2018
Slide 1: Kirin Group Financial Results for the 3Q 2018
Kirin Group Financial Results for the 3Q 2018 November 6, 2018 Kirin Holdings Company, Limited 1
Slide 2: 3Q Summary
3Q Summary Financial result summary 3Q consolidated revenue was +4.8% YoY. Normalized OP was -1.1% YoY but largely unchanged from the previous year excluding foreign exchange impact. Net income attributable to owners of the parent declined significantly due to a flipside of the positive impact of th
Slide 3: 3Q 2018 Results: Highlights
3Q 2018 Results: Highlights bn yen 3Q18 Actual 3Q17 Actual YonY change Revenue 1,420.7 1,355.3 +65.4 +4.8% Normalized operating 147.2 149.0 -1.7 -1.1% profit (OP)*1 Includes gain on the Profit before tax 198.7 190.7 +7.9 +4.2% sale of shares in Kirin Amgen, etc. Profit attributable to In the previou
Slide 4: 3Q 2018 Actual Results by Segment
3Q 2018 Actual Results by Segment Revenue +4.8% due to increased sales in Japan and Overseas Integrated Beverages Business. Normalized OP -1.1% due to a decline in sales in the Overseas Integrated Beverages and Pharmaceutical & Bio- Chemicals Business despite the strong performance of Japan Integrat
Slide 5: Changes in normalized OP by Company (vs 3Q 2017)
Changes in normalized OP by Company (vs 3Q 2017) Description Kirin Brewery bn yen 142.0 144.0 146.0 148.0 150.0 152.0 154.0 156.0 Higher marginal profit due to increased sales volume of new-genre and RTDs as well as reduced selling expenses. 3Q17 Normalized OP 149.0 Kirin Beverage Deterioration of p
Slide 6: 3Q Update 1/3 Kirin Brewery
3Q Update 1/3 Kirin Brewery Sales volume of beer products +4.7% due to strong sales in new-genre Sales of Honkirin in the new-genre category were strong despite overall market decline. Continue to focus on Kirin Ichiban and Nodogoshi, and aim for further growth through highly focused marketing. Honk
Slide 7: 3Q Update 2/3 Kirin Beverage Corporation and Lion BSW
3Q Update 2/3 Kirin Beverage Lion BSW Corporation Sales volume increased, but Normalized OP Strong Craft and Focus Brands performance decreased due to deterioration in the mix. Mix deteriorated due to a decrease in the composition Completed acquisitions of craft ratio of cans while ratio of large PE
Slide 8: 3Q Update 3/3 Kyowa Hakko Kirin
3Q Update 3/3 Sales and profits declined, but in line with forecasts. Kyowa Hakko Kirin Share of profit of investments improved. Sales and profits of domestic pharmaceuticals continue to decline due to the impact of NHI drug price revisions and generic drug penetration. Core operating profit* revise
Slide 9: 4Q Onwards
4Q Onwards Kirin Brewery Kirin Beverage Continue to focus on small containers Fresh Hop Fest 2018 Strengthen sales of products Jointly held by 52 craft brewery for the winter, mainly for core companies throughout Japan brands. including Spring Valley Brewery, Improve the mix by over 1,000 restaurant
Slide 10: Appendices
Appendices Copyright © KIRIN HOLDINGS COMPANY, LIMITED . All rights reserved 10
Slide 11: Normalized EPS
(Ref.) Details of the Normalized EPS Normalized EPS 3Q18 3Q17 bn yen Actual Actual Profit attributable to owners of the company ① 128.9 217.2 Profit attributable to non-controlling interests ② - 81.8 Other operating income/expenses after taxes and other adjustments ③ -19.2 -21.4 Normalized profit ④
Slide 12: 3Q Actual Results: Integrated Beverages
3Q Actual Results: Integrated Beverages YonY change bn yen 3Q18 Actual 3Q17 Actual ％ Japan: Revenue 795.9 778.6 +17.3 +2.2% Kirin Brewery 492.1 479.4 +12.7 +2.6% Kirin Beverage 215.0 216.5 -1.5 -0.7% Mercian 44.3 44.8 -0.5 -1.1% Other and elimination 44.5 37.8 +6.7 +17.6% Japan: Normalized OP 62.4 5
Slide 13: 3Q Results - Japan Integrated Beverages - Kirin Brewery
3Q Results - Japan Integrated Beverages - Kirin Brewery Beer market Volume change 3Q YonY Volume change 3Q YonY by category change by brand change Beer market in 3Q is estimated at -2.6% YoY. Despite the positive impact from favorable weather, other Beer products total +5% Kirin Ichiban -5% factors
Slide 14: 3Q Results - Japan Integrated Beverages - Kirin Beverage
3Q Results - Japan Integrated Beverages - Kirin Beverage Sales volume (10,000 cases) 3Q18 3Q17 YonY Soft drinks market Actual Actual change Black tea 3,707 3,823 -3.0% Soft drink market in 3Q is estimated at +2% YoY. Japanese tea 2,643 2,378 +11.2% Coffee 1,896 2,186 -13.3% Kirin Beverage Fruit and
Slide 15: 3Q Results - Overseas Integrated Beverages - Lion
3Q Results - Overseas Integrated Beverages - Lion Yen base (bn yen) A$ base (million A$) 3Q18 3Q17 3Q18 3Q17 YonY change YonY change Actual Actual Actual Actual Revenue 237.7 249.3 -11.6 -4.6% 2,876 2,897 -21 -0.7% BSW 129.6 136.5 -7.0 -5.1% 1,567 1,586 -20 -1.2% LDD 108.2 112.8 -4.6 -4.1% 1,309 1,3
Slide 16: 3Q Results - Overseas Integrated Beverages – Myanmar Brewery
3Q Results - Overseas Integrated Beverages – Myanmar Brewery Yen base (bn yen) Kyat base (bn MMK) 3Q18 3Q17 3Q18 3Q17 YonY change YonY change Actual Actual Actual Actual Revenue 19.8 18.1 +1.7 +9.2% 252 220 +32 +14.4% Normalized OP 8.2 6.8 +1.4 +20.7% 105 83 +22 +26.5% Beer market Continued to grow
Slide 17: 3Q Results – Pharmaceuticals and Bio-chemicals
3Q Results – Pharmaceuticals and Bio-chemicals bn yen 3Q18 Actual 3Q17 Actual YonY change Revenue 248.9 256.6 -7.7 -3.0% Kyowa Hakko Kirin 254.5 261.8 -7.4 -2.8% Pharmaceuticals 196.9 202.3 -5.4 -2.7% Bio-chemicals 57.5 59.5 -2.0 -3.4% Other and elimination -5.5 -5.2 -0.3 - Normalized OP 45.6 47.8 -
Slide 18: This material is intended for informational purposes only
This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. 18
Kirin Holdings Company — Q3 2018 Earnings Presentation on 6ix