Takara Holdings Inc. February 2013

Transcription

1 Takara Holdings Inc. February 213 Director, Shuichiro Matsuzaki Business Structure Takara Holdings Inc. 2 Share owned: 1% Share owned: 7.8% Share owned: 1% Takara Shuzo Co., Ltd. Takara Bio Inc. [Mothers board: 4974] Takara Healthcare Inc. 22 subsidiaries 1 subsidiaries Alcoholic Beverages and Seasonings Business Domestic Alcoholic li Beverages Business Seasonings and Raw Alcohol Business (B to B) Overseas Alcoholic li Beverages Business, Japanese Food Ingredients Wholesale Business Biomedical Business Genetic Engineering i Research Business Agribio Business Gene Medicine Business Health Foods Business 3 othe er subsid diaries Takara Shuzo Group Takara Bio Group Takara Healthcare

2 Financial Summary Six Year Financial Summary Net sales 25, 12,5 3 Operating income Net income 2, 191, ,79 19, , ,69 22,2 1, 15, 8,56 8,851 8,572 8,335 9,264 9,5 7,5 1, 5, 4, ,639 4, ,788 3,995 4,6 6 5, 2,5 Operating income Net income Net sales (e) Business Performance (FY212) 4 Consolidated Net Sales: 198,69 million yen Sales by business segment Sales by business area Takara Bio Group Takara Healthcare Overseas 99% 9.9% 12% 1.2% 84% 8.4% Takara Shuzo Group 88.3% Domestic 91.6% Consolidated Operating Income: 9,264 million yen Consolidated : 9,264 million yen Takara Shuzo Group: 6,768 million yen Takara Bio Group: 1,547 million yen Takara Healthcare: 114 million yen Other: 1,63 million yen

3 Long Term Management Plan 5 Takara Group Vision 22 (1 years from April 211) Management Goal Grow businesses in market in Japan and overseas in which the Group can leverage its strength, establish a balanced business structure that is readily adaptable to changing gconditions Toward balanced business portfolio less susceptible to fluctuations in Japan and overseas Biomedical Business (TakaraBio Group) Health Foods Business (Takara Healthcare) Alcoholic li Beverages and Seasonings Business (Takara Shuzo Group) Unique and robust business portfolio that comprises a stable core business and promising growth businesses Medium Term Management Plan FY214 (FY212~FY214) 6 Basic Policy Aiming to realize the Takara Group Vision 22, achieve stable growth in Japan while expanding business base in order to grow significantly overseas Tangible Goals Net sales Operating income 1 At least At least 89, ,69 22,2 2, 8,335 9,264 9,5 1, (e) 3(e) 14.3(Plan) (e) 3(e) 14.3(Plan) Financial Policy While maintaining a sound financial position, the Group aims to invest in both growth and developing businesses, return profits to shareholders actively, and increase ROE (return on equity). Returns to shareholders Realize a shareholder h return payout* of at least 5% by combining i dividends id d and share buybacks b * Shareholder return payout = (Total dividends + Amounts of share buybacks) / Deemed consolidated net income** **Deemed consolidated net income = (Consolidated ordinary income Interest income and dividends + Interest payments) x (1 Effective tax rate)

4 Tangible Goals by Business Segment 7 Takara Shuzo Group Takara Bio Group Takara Healthcare Net sales 166,79 175, ,, 18, Net sales 18,737 19,578 2,7 22,7 New plan 23,6 6 Net sales 2,567 2,338 2, 2, (e) 14.3(Plan) (e) 3( 14.3(Plan) 15.3(Plan) (e) 14.3(Plan) Operating income Operating income Operating income New plan 1,9 97 1, ,568 6,768 7, 7,7 1,547 1,6 1,7 1, Achieve e profitability (e) 14.3(Plan) (e) 14.3(Plan) 15.3(Plan) (e) 14.3(Plan) 8 Takara Shuzo Group Domestic Alcoholic Beverages Business Seasonings g and Raw Alcohol Business (B to B) Overseas Alcoholic Beverages Business, Japanese Food Ingredients Wholesale Business

5 Takara Shuzo Group 9 Domestic Alcoholic Beverages Business Manufacture and sale of shochu, sake, RTD, and seasonings Shochu Sake Seasonings and Raw Alcohol Business Seasonings business for food processing and raw alcohol business (B to B) RTD Seasonings Overseas Business Overseas alcoholic beverages business and Japanese food ingredients wholesale business Takara Shuzo Group 1 Maintain Business Performance Stable Performance Net sales Operating income 2, 1, 178, 169,31 166,79 175,53 15, 166, ,969 7,5 7,177 7,465 7,129 6,568 6,768 7, Sales by product category (FY212) Other 18.4% Seasonings 12.6% RTD 15.2% Sake 1, 5, 11.9% Shochu 41.9% 5, 2,5 Sales by business area (FY212) Overseas 5.3% Domestic 94.7%

6 Domestic Alcoholic Beverages Market Condition (1) 11 Trends in Japan s Population and Alcoholic Beverages Market Scale [Units] Population: thousand people (left scale) Alcoholic beverages market: thousand kiloliters (right scale) Population ( to 19 years old) Population (2 to 64 years old) Population (over 65 years old) 14, 14, Forecast 12, 1, Alcoholic beverages (taxable shipping volume) 12, 1, 8, 6, 4, 2, 8, 6, 4, 2, <Sources> Population: Statistics Bureau, Ministry of Internal Affairs and Communications, National Institute of Population and Social Security Research Alcoholic beverages (taxable shipping volume): National Tax Agency Domestic Alcoholic Beverages Market Condition (2) 12 Trend in the Amount of Alcoholic Beverages Consumption 7, (billions of yen) 6, 5, 4, 3, 2, 1, Total Beer and Low malt beer (happoushu) Sake Shochu FY FY FY FY FY2 FY2 1 FY2 2 FY2 3 FY2 4 FY2 5 FY2 6 FY2 7 FY2 8 FY2 9 FY2 1 FY2 11 Domestic market share (CY211) Categories Domestic market share Position Shochu 13.7% 1 st Ko type 28.3% 1 st Sake 7.7% 3 rd For gift use (1.8 liter bottle sake) 1 st Light alcohol refreshers (RTD) 13.1% 3 rd Mirin (Type 1) 55.% 1 st <Sources> Jouzou Sangyo Newspaper; Nikkan Keizai Tsushinsha, Inc.; National Mirin Association

7 Domestic Alcoholic Beverages Business 13 Business Strategy New product development Brand nurturing Strengthen profitability Develop highly original new Foster array of powerful Strengthen profit products with differentiated brands for premium range and management and promote quality mid range products operational efficiency New product development Generate stable cash flows and support the Group s growth High New premium range product New mid range product Price range Premium range products Sparkling sake Sho Chiku Bai Shirakabe gura Mio Sho Chiku Bai Ten eco pouch Mid range products Low (launched June 211) (launched September 211) Market scale Seasonings and Raw Alcohol Business (B to B) 14 Business Strategy Expand seasonings business for food processing Help customers solve problems by leveraging technological capabilities to develop products and advance solution based sales efforts Expand raw alcohol business Grow operations through new business model and increase profitability by establishing competitive superiority Exploit synergies between the two arms of the businesses and expand B to B business Business model for seasonings and raw alcohol business (B to B) Seasonings and raw alcohol business Seasonings business for food processing Raw alcohol business Takara Shuzo Seasonings Industrial alcohol Alcohol for alcoholic beverages Ready prepared meal manufacturers Restaurants and bars Food processors Cosmetic manufacturers Alcoholic beverages manufacturers Ready prepared meals Restaurant dishes Processed food products Cosmetics Alcoholic beverages Consum mers

8 Overseas Market Condition (1) 15 Trend in Scale of Global Sake Market (kiloliters ) Exports Local production 35, 3, 25, 2, 15, 1, 5, <Sources> Exports: Trade Statistics of Japan, Ministry of Finance Local production: Jozo Sangyo Newspaper (total of local production for nine major sake companies) Overseas Market Condition (2) 16 The Number of Japanese Restaurants Europe 2, (26 survey) Russia 5 (26 survey) 1, (211 survey) North America 1, (26 survey) 2,5 (211 survey) Africa 5 (211 survey) Middle East 1 (211 survey) Asia 6,~9, (26 survey) 1, (211 survey) Oceania 1, (211 survey) 14, (211 survey) Central and South America 1,5 (211 survey) <Source> Ministry of Agriculture, Forestry and Fisheries

9 Overseas Business (Takara Shuzo Group) 17 Business Strategy Expand overseas alcoholic beverages business Build foundation for overwhelming No.1 position in overseas sake market Create a Japanese food ingredients wholesale network Build and extend sales network and accelerate expansion of business in European market Overseas sales 7,528 9,3 16 9, ,5 Spread Japanese food culture and expand overseas business Overseas bases of the Takara Shuzo Group European bases of FOODEX S.A.S. FOODEX BELGIUM S.P.R.L. FOODEX S.A.R.L FOODEX S.A.S. S (Switzerland) The Tomatin Distillery Co., Ltd. Takara Shuzo Foods Co., Ltd. Age International, Inc. FOODEX SUD S.A.R.L (South France) FOODEX S.R.L (Italy) FOODEX S.A.S. Shanghai Takara Shuzo International Trading Co., Ltd. Takara Sake USA Inc. Overseas alcoholic beverages business Japanese food ingredients wholesale business 18 Takara Bio Group Genetic Engineering Research Business Agribiog Business Gene Medicine Business

10 Takara Bio Group 19 Takara Bio Group Highlights Takara Shuzo Co., Ltd. (now, Takara Holdings Inc.) started the biomedical business. April 22 Takara Bio Inc. was established as a result of a corporate separation through incorporation of a new company. December 24 Takara Bio Inc. was listed on the Mothers section of the Tokyo Stock Exchange Basic Business Strategy Performance by business category: FY212 Research reagents Gene medicine (Future growth business) Net sales: 842 Operating loss: 1,186 RetroNectin R&D expenses: 1,374 Genetic engineering research Cell therapy related products (Stable cash generating business) Net sales: 16,3 Agribio Operating income: 4,447 (Secondary income business) R&Dexpenses: 843 Net sales: 2,435 Operating loss: 253 R&D expenses: 244 Scientific instruments Contract research services Mushrooms Health foods Takara Bio Group 2 Maintain Business Performance Stable Performance Net sales 25, 2, 15, 1, 5, 18,913 18,737 2, ,325 19, ,97 1, ,7,6 1, Operating income 2,5 2, 1,5 1, 5 Sales by business category (FY212) Gene medicine Agribio 43% 4.3% 12.4% Contracted Research service and other reagents 11.% 58.8% Scientific instruments Genetic engineering 13.4% research 83.3% Sales by business area (FY212) Other Asia Ai Europe Other 4.4% 6.6%.7% Overseas 38.2% China 12.% USA 14.3% Domestic 61.8%

11 Genetic Engineering Research Business 21 Expanded lineup of research reagents Global sales network Acquired the Clontech unit of BD Biosciences in 25 Europe China USA Highly cost competitive research reagents Manufacturing the most of research reagents in Dalian, China India Korea Open up markets in Japan and overseas, including emerging countries, and increase sales and strengthen profitability further Sl Sales of Genetic engineering i research business 16, ,882 16,3 17, ,467 19,11 Sl Sales in China 1,43 1,682 1,87 79,99 2, 2,298 2, (e) 14.3(Plan) 15.3(Plan) (e) 14.3(Plan) 15.3(Plan) Gene Medicine Business 22 Gene Therapy Protocol Using the RetroNectin Method Processed cells are re infused into the patient Cells are removed from the patient Blood cells transfused with therapeutic genes Transduction of genes in a culture container coated with RetroNectin Blood cells Genes to transduce φ Recombinant retroviruses Schedule for Clinical Trials of Gene Medicine Cure Target disease Current status and future schedule HSV TK gene therapy Donor lymphocyte infusion: Relapsed leukemia Phase I clinical trials underway in Japan Haplo add back: Hematological malignancies FY218 Commercialization HF1 Head and neck cancer, etc. Phase I clinical trials underway in the U.S. FY219 Commercialization MazF gene therapy HIV Phase I clinical trials underway in the U.S. FY223 Commercialization TCR gene therapy Esophageal cancer, etc. Scheduled to commence Phase I clinical trials in Japan in FY214

12 ips Cell 23 Takara Bio Technologies in ips Cell Research Transduction Amplification Cells Therapeutic genes Yamanaka factors, etc. Transduction Initialization Technologies related to gene therapy Gene transduction Vector development RetroNectin method GMP production of plasmid vectors and retroviral vectors Cell processing GMP production of gene transduction cells GMC (Gene Modified Cells) Administration ipsc (induced Pluripotent Stem Cells) Differentiation Transplantation Technologies related to genome sequence analysis Cell characteristic analysis Use of high throughput sequencing technologies Epigenetic analysis Genome sequence analysis Gene Expression analysis Gene therapy Regenerative medicine New Business Model for Gene Therapy 24 GMP production facilities installed on company premises Vector production facilities Vectors for gene transduction Cell processing / Gene transduction Cell Processing Center Selection / Concentration Hospital Blood collection Expansion culturing Transfusion New facility for the research and manufacturing of pharmaceutical products for cell and gene therapies Aug. 9, 212 Takara Bio announced that it has entered into an agreement with a third party to purchase its land and buildings, and the company will build a new facility for the research and manufacturing of pharmaceutical products for cell and gene therapies. The role of the new facility will be to manufacture gene modified cells or viruses in compliance with GMP (Good Manufacturing Practice) as well as vectors for gene transduction.

13 25 Takara Healthcare Health Foods Business Takara Healthcare 26 Business Strategy Takara Bio s unique, cutting edge technologies Takara Shuzo s marketing expertise Sell health foods through direct marketing channels Business Performance Main Products Net sales of healthcare products and operating loss 1,5 1,22 1,25 6 1,29 1, Fucoidan Supplement 5 Gagome kombu (kelp) 5 Net sales 5 of healthcare products 1, Operating loss 2 4 Ashitaba Chalcone Ashitaba (angelica herb) 1, (e) 6

14 27 Our Policy Our Policy 28 Developing and nurturing products and services that are differentiated with original technologies and offer the safety and high quality desired by customers Tk Takara Shuzo Group Tk Takara Bio Group Secure stable profits in Japan Expand business overseas Grow profits from genetic engineering research Achieve commercialization of gene therapy Takara Healthcare Accelerate growth of health lthfoods business

15 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 management according to information available at the time of writing, they reflect many assumptions and opinions derived from information that includes major risks and uncertainties. Actual results may vary significantly from these forecasts due to various factors. Factors that could influence actual results include, but are not limited to, economic conditions, especially trends in consumer spending, as well as exchangeratefluctuations,changesinlaws and government systems, pressure from competitors prices and product strategies, declines in selling power of the Company s existing and new products, disruptions to production, violations of the Company s intellectual property rights, rapid advances in technology and unfavorable verdicts in major litigation. <Inquiry> Takara Holdings Inc. Financial & Investor Relations Dept. E Mail: ir@takara.co.jp