Suntory 2013 Annual Report
Suntory 2013 Annual Report
Suntory 2013 Annual Report
In Harmony with
People and Nature
Contents
About us. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
We Are a Soft Drink Company with a Globally
Integrated Platform in Key Regions . . . . . . . . . . . . . . . . . . . . . 02
Our Innovative Products Have Led Robust Organic
Growth Outperforming the Japanese Market. . . . . . . . . . . . . . 04
R&D Expertise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Brand Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Performance Highlights. . . . . . . . . . . . . . . . . . . . . . . . 16
Presidents Message. . . . . . . . . . . . . . . . . . . . . . . . . . 18
Strategy in 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
CSR Approach and Initiatives . . . . . . . . . . . . . . . . . . . 30
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . 40
Board of Directors and
Audit & Supervisory Board Members. . . . . . . . . . . . . 46
Financial Section. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Corporate Overview. . . . . . . . . . . . . . . . . . . . . . . . . . 88
Stock Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Forward-Looking Statements
This annual report is aimed at providing financial, management and other information on Suntory Beverage & Food Limited (SBF) and its subsidiaries and affiliate
companies (the Group).
Though SBF has relied upon and assumed the accuracy and completeness of third party information available to it in preparing this annual report, including data
prepared by Euromonitor International Limited, Inryou Souken, and INTAGE Inc., SBF has not independently verified such information and makes no representations as
to the actual accuracy or completeness of such information. Therefore, the information should not be relied upon in making, or refraining from making, any investment
decision. The information in this annual report is subject to change without prior notice. Statements contained herein that relate to future operating performance or
strategic objectives are forward-looking statements. Forward-looking statements are based on judgments made by SBFs management based on information currently
available. These forward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially.
This annual report is not a securities report based on the Financial Instruments Exchange Act of Japan, and does not necessarily contain all the information required in
making investment decisions regarding the securities of SBF.
01
Orangina Schweppes
Oasis
Luco zade
Ribena
BOSS
Iyemon
Suntory Suntory
Oolong Tennensui
Tea
Pepsi
Orangina GREEN
DAKARA
Europe
Japan
Americas
drink company.
Asia
Net sales
1,121.4
bil.
+13.0 % YoY
Oceania
Operating income
72.7
+24.4 % YoY
bil.
EBITDA*
139.6
bil.
+21.8 % YoY
Mirai
Americas
8%
5%
12%
Europe
14%
Okky Jelly
Drink
Oceania
Oceania
Asia
3%
Just Juice
BRANDS
Essence of
Chicken
Asia
10%
Japan
Japan
64%
TEA +
Oolong Tea
EBITDA by Area
Americas
7%
MYTEA
Oolong Tea
Europe
54%
23%
02
03
1997
C AGR
SBF
Japan
2013
4.6%
1.1%
(m illion cases)
Souken
: Inryou
Source
500
2004
2001
2002
2005
2008
450
400
2010
2009
2006
350
2003
300
2000
1999
250
1998
1994
2012
2013
1991
1992
1995
1996
200
1997
150
1993
100
50
20.1%
*
No. 2 in Japan2013
Suntory
Oolong Tea
04
Suntory
Tennensui
BOSS
C.C.Lemon
natchan!
Iyemon
Suntory Black
Oolong Tea
Orangina
GREEN
DAKARA
05
Marketing
EVOLUTION of BOSS
au Lait.
Sales volumes of BOSS have continuously increased over the past 20 years
19921997
BOSS was launched as The
Workers AIBO.
(AIBO = A reliable partner with long years of experience that could be trusted)
13.8%
7.5%
9.5%
12.0%
20022003
A major product renewal was
undertaken in the 10th year,
introducing new flavors for enjoying BOSS in various drinking
occasions.
(expansion of product lineup)
06
Today
Strategy focused on
four major categories
Established categories represented by Rainbow Mountain
Blend, Zeitaku Bito, Muto Black,
and Caf au Lait.
21.2%
BOSS Sales
15.0%
(million cases)
83.0
2013
59.2
2003
1993
21.0%
24.0
Tea
Coffee
Carbonated
Mineral water
Fruit/Vegetable
Sports drink
Other
07
R&D
FOSHU Lineup
Suntory Black
Oolong Tea
An oolong tea that
helps block the
absorption of fat.
Pepsi Special
A cola product that
helps block the
absorption of fat
and suppresses the
increase of
triglycerides after
meals.
BOSS GREEN
A canned RTD
coffee that helps
to block the
absorption of fat.
Iyemon Tokucha
years have e
nabled us to expand our
Suntory
Goma Mugicha
A barley tea drink
containing sesame
peptide, making it
ideal for those
with high blood
pressure.
FOSHU
2014
16.9
2013
2012
10.7
attracted a lot of
attention in the
past few years
and is expected to
expand further.
08
09
Sales (overseas)
Europe
500
404.5*2
400
2013
291.8*1
Lucozade
Ribena Suntory
Limited
300
200
2011
Suntory PepsiCo
V ietnam Beverage Co., Ltd.
2013
EBITDA (overseas)
70
billions of yen
2012
64.7*
Suntory Narang
Private Limited
65
60
2011
54.9*1
PT SUNTORY
GARUDA BEVERAGE
55
50
45
2013
100
0
Americas
billions of yen
Oceania
2011
2009
2013
Orangina
Schweppes Group
Acquired the Orangina Schweppes Group (OSG), a soft drink manufacturer based in France.
OSG markets Orangina, a carbonated beverage containing fruit juice enjoyed in more than 40
countries around the world. In addition to its firmly established operating base in France and Spain,
OSG is also developing an expansive concentrates business.
2009
Frucor
Group
2013.
1990
Cerebos
Pacific Limited
1980
PepCom
Industries, Inc.
10
1999
Pepsi Bottling
Ventures LLC
Established the joint venture Pepsi Bottling Ventures LLC (PBV) with
PepsiCo. PBV is a Pepsi bottler in the United States. It was established by
integrating the franchise (manufacturing and marketing rights) area of
PepCom Industries, an independent Pepsi bottler, with the franchise area of
PepsiCos bottling division in North Carolina.
11
Orangina
Originating in France,
nology we have accumulated over many years in product development for Suntory Oolong Tea to develop
delicious tea products with a taste adapted to local
consumer preferences. Looking ahead, we will continue to develop and market products across national
and regional boundaries by adapting them to the
tastes of customers in each region. In doing so, we will
continue to embrace the challenge of delivering delicious refreshment to customers worldwide.
Our Vision
in the
re company
Food is a co
&
ge
ra
ve
ba
ed sic
Suntory Be
rited its shar
and has inhe
ntory
,
up
ro
G
d
y
Guide by Su
Suntor
and vision.
y
ph
so
iq
ilo
un ue
corporate ph
developed a
.
phy, we have
so
Food Group
ilo
&
ph
s
ge
ra
Group
Suntory Beve
e
th
r
fo
n
s Vision.
business visio
Group
the Suntory
page 30 for
*Please see
for value
Our Vision
& quality
es
the best tast
life.
A quest for
to everyday
& wellness in
s
es
in
pp
ha
to bring
pany
for the com
Our Vision
pany
ft drink com
so
ading global
ue brands.
To be the le
m and uniq
iu
em
pr
r
ou
r
fo
d
ize
recogn
12
13
e Ener
R i be
Lucozad
Or
te gre
ch en i
no t
lo ea
gi de
es
v
to elo
su pe
it d
lo us
ca in
lt g
as Jap
te
s. ane
se
Americas
Oceania
Pep
Mountea
Ju
Pep
st J
Af
uic
r
e
offe uit an
d
cen ring a vege
ter
t
ed wide able
ju
r
on
tro ange ice b
pic
o
r
al f f flav and
ruit
ors
s.
si
An
effe iconic
rve
c
sce ola d
nce
rin
and k kn
its own
sm
oo for it
s
th,
ref spark
res
hin ling
gc
har
act
er.
V
Energy drinks marketed
in New Zealand and
Australia, notable for its
use of natural guarana
seed extract.
ng
idi
ov .
pr wn
for do
le
lp
tab gu
no y to
w
ink as
De ft dr ing e
so be
ain
nt ored and
ou
M s flav g jolt
ru in
cit esh
efr
ar
Pe
gy
An ener
gy d
sales shar rink that comman
e* of U.K
ds the to
p
. energy
drinks.
ang
As
ina
p
ma arklin
rke
aro
ted g oran
und
in m ge
fru
the
o
it
r
e
wo
rld. than drink
40
cou
ntr
ies
ira
M
A
blo
ck
AP
i Sp
eci
the epsi F
abs OSH al
orp
Up
tio
n o roduc
f fa
t th
t.
at h
elp
s to
e
th
Ora
BRANDS
Essence of Chicken
s
er
um
ns
co t.
rs frui
fe
of icy
at , ju
th
n! nk resh
ha dri f f
tc ce e o
na it jui tast
s
fru iou
lic
de
ngin
A sp
a
ar
distin kling fruit
ctive
d
bitte
refre rink from
rness
s
Fran
. (Pro hing ora
ce w
ng
duce
d by e flavor ith a
a
SBF
in Ja nd natur
pan)
al
Ti
A
p
m ran Co
ar ge
ke o Bra
te f 1
n
d
in 00% d Ju
Th
i
ail frui ces
an t/v
d. eg
et
ab
le
ju
ice
s
A
ps
z
tas ero- i N
c
E
te
an alori X Z
dc ed
ER
ha
O
rac rink
ter tha
t
ist
ic offe
cri
sp rs th
aft e f
ert ullast bo
e o die
fa d
co
la.
BO
SS G
AR
T
REE
help D coff
N
ee
s to
blo FOSH
ck t
U
he a that
bso
rpti
on
of f
at.
ts such
utrien d
with n
e
Sting
s.
mend
acked
rink p
recom orts activitie
ergy d B vitamins,
sp
An en
nsive
d
rine an r before inte
as tau
so
sy day
on bu
ow .
kn Tea
e
th ng
g olo nd.
a
in
Te us ry O haila
d to
g
on eate Sun nd T
ol
r
O a c for m a
e
A + g t ed tna
TE lon elop Vie
oo dev d in
An w
te
e
ho ark
M
e
w
ho niqu
u
wno with ces.
ea
gk
n
g T usin g Tea efere
lon
ed
on
pr
Oo esign y Ool aste
t
r
d
EA
YT g tea Sunto esian
M
n
lon for do
oo ed t In
An elop o sui
v
de ors t
v
fla
A Iye
ca gree mo
fro refu n te n
br m t lly s a th
i
e
h
m ng o e p lect at u
at
ch ut t rest ed b ses
1
a t he igi
ea ge ou y a 00%
fo nu s K ch
r a in yo as Jap
ll t e m to ho ane
o
en ello tea (ma se t
e
c
s
jo
y. w fl om ter a le
av pa te
a
or ny a b ves
,
of
l
F
sto uku end
ne jue er)
-g
ro n to
un
d
cial
Oasis
no artifi
ice with
l fruit ju
A natura
atives.
r preserv
colors o
Lucozade Sport
Asia
De'Koe
ntaining sesame
A barley tea FOSHU co
l for those with high
peptide, making it idea
blood pressure.
l).
m
.
en
ais
at kud
re
eg dO
ui
ns rom th an
ne d f rom so
en urce er f ps, A
y T so at Al
or ter dw mint wa oun ina
Su eral ar gr e M
h
e
in
m al-cl of t
rs
st
cry tdoo
ou
ith
w ns
k
ir n emo
d l
ed 50
or to
v
fla ent
on al
on lem quiv
m g e
Le rklin tent
.
C pa n
C. sp s C co
i
cr in
A tam
vi
00
(5
BOSS
An RTD coffee
that has been
enjoyed for more
than 20 years as
The Workers
AIBO.
An u
bl oo nto
oc lo
ry
k
th ng t
B
e
ab ea F lac
so O k
rp SH O
tio U ol
o
n
t
of hat ng
fa he
T
t.
lp ea
st
o
dy fat.
reduce bo
ese
apan
s of J
tea
Tea
taste
i rock
olong
it the
Wuy
ory O red to su based on s origins.
Sunt
it
tailo
nd
a ble ea traces
g tea
olon with a te
ng t
An o
rs,
oolo
ume
hich
cons
mw
s, fro
leave
cha
emon Toku
Iy
at helps to
a FOSHU th
A green te
s
nt
die
re
g
in e
od vid
fo ro
h op
t
l
t
a
A r he me
AR pula sesa .
K
k
o
n
DA g p blac tio
N usin and ydra
E
h
e
E d d re
GR k ma aweeyday
e
r
in
dr as s eve
A ch
e
v
i
u
s ect
eff
top sales
that commands the
A functional drink
t.
sports drink marke
share* of the U.K.
ude
multit
Japan
a
ble in
availa
drink
bilities position us to swiftly capitalize on global consumer trends favoring healthier products in a variety of categories.
ppes
Schwe
create new demand for our products in the beverage market. Our diversified brand portfolio and development capa-
d soft
onate
A carb .
ors
of flav
Over the past several decades we have expanded our brand portfolio to adapt to changing consumer preferences and
na
A bl
a
was ckcurra
n
orig
inal t (cassis
ly la
unc ) flavor
hed
e
in 1 d fruit j
938
uice
.
that
Europe
Brand Portfolio
RTD tea RTD coffee Functional drink Health supplement Mineral water Fruit juice Carbonate Cola drink Jelly drink Energy drink FOSHU
14
15
Performance Highlights
Suntory Beverage & Food Limited and Consolidated Subsidiaries
millions of yen
2011
2012
2013
893,353
992,160
1,121,362
Operating income
59,789
58,447
72,716
Net income
29,497
23,385
31,196
30,063
36,570
43,719
Amortization of goodwill
19,121
19,666
23,211
48,618
43,050
54,407
108,973
114,682
139,646
EBITDA*1
NET SALES
+13.0%
YoY
OPERATING INCOME
EPSYen
*2
ROE*3
225.09
199.31
207.17
24.2%
14.5%
136.56
108.27
118.79
21.7%
13.2%
8.3%
YoY
81,346
85,830
21,587
75,874
290,613
42,377
15,249
190,409
28,205
26,061
45,851
TOTAL EQUITY
+388.7bil.
YoY
114,082
foster and strengthen core brands and create demand through the
Cash flows
Cash flows from operating activities
+24.4%
Consolidated net sales for both the Japan segment and the
Net Sales
billions of yen
1,200
Operating Income
billions of yen
Total assets
802,876
844,450
1,256,702
Total equity
181,890
204,276
592,969
Capital expenditures
50,823
62,600
D/E ratioTimes
*4
1.7
1.5
0.4
150
80
60
800
100
600
40
400
*1 EBITDA is operating income plus depreciation and amortization and amortization of goodwill.
*2 The Company calculated EPS for the fiscal year ended December 31, 2013 based on the average number of issued shares during the year including the issuance of 93,000,000 new shares.
On April 16, 2013, the Company conducted a 1:500 share split whereby 1 share was split into 500 shares, bringing the total number of issued shares to 216,000,000 shares. The Company calculated EPS
for the fiscal year ended December 31, 2012, and for the fiscal year ended December 31, 2013, based on the assumption that the share split was conducted at the beginning of the fiscal year
ended December 31, 2012.
*3 The Company calculated ROE for the fiscal year ended December 31, 2013 based on the average shareholders equity at the beginning and end of the fiscal year including the equity increase
during the fiscal year.
*4 D/E ratio:Interest-bearing debt Cash and cash equivalents
/ Total equity
billions of yen
1,000
At Year -end
16
EBITDA
50
20
200
2011
2012
2013
2011
2012
2013
2011
2012
2013
17
Presidents Message
Q1
A
SBF was listed on the First Section of the Tokyo Stock Exchange on July 3, 2013.
Please tell us about the background to this move and the Companys objectives.
By expanding our existing business and aggressively pursuing M&As, we aim to become internationally recognized as a leading global company in the soft drink industry.
Nobuhiro Torii
President
2 trillion
(billions of yen)
2,000
2,000
on July 3, 2013.
We will accelerate our growth even further by strengthening our global business foundation and creating brands that
appeal to the tastes of customers throughout the world.
1,500
1,121.4
1,000
992.2
500
18
2012
2013
2020
19
Q2
A
Please give a summary of the fiscal year ended December 31, 2013 and your targets
for the fiscal year ending December 31, 2014.
In the fiscal year ended December 31, 2013, we saw a substantial increase in both sales and
earnings. In fiscal 2014, we will build an even stronger business in Japan, and enter a new
growth stage, mainly in Europe and Asia.
Fiscal 2013, the year ended December 31, 2013, was the
first year of our Medium-term Management Plan. We saw
substantial increases in both sales and earnings, with
consolidated net sales of 1,121.4 billion, up 13.0% year
Crdits Photo Thomas Bismuth
(billions of yen)
FY2013
FY2014 (Forecast*)
Year-on-year
change
1,121.4
1,260.0
12.4%
Operating
Income
72.7
85.0
16.9%
Net Income
31.2
35.0
12.2%
139.6
160.0
14.6%
Net Sales
EBITDA
20
21
Q3
A
What kind of strategies do you have in mind for achieving the vision for 2020 of
consolidated net sales of 2 trillion?
We will utilize our strengths in product development and marketing to drive faster growth in
our Japan and overseas segments.
Q4
A
Please talk about your initiatives for continuously increasing SBFs corporate value.
We are aiming to grow sustainably by providing safe, reliable, high quality products and
building trust in our relationships with our stakeholders.
corporate governance.
Group).
position Suntory Beverage & Food Asia Pte. Ltd. and the
inimitable value.
Africa, the Middle East and emerging markets, with the aim
Could you please give your closing message to shareholders and investors.
22
Nobuhiro Torii
President
23
Strategy in 2014
as the yens depreciation and rising oil prices and create a lean
procurement activities.
Pepsi, Suntory Oolong Tea, GREEN DAKARA and Orangina. We plan to grow the sales volume of these seven brands by 7% in
2014 and expect their composition of overall sales volume to reach 75%.
*Forecast as of February 14, 2014
Segment profit
Sales
740.0
24
bil.
+3.2% YoY
48.0
bil.
+5.7% YoY
Forecast*
We are concentrating our management resources on the following seven core brands: Suntory Tennensui, BOSS, Iyemon,
+7% YoY
we launched a sparkling
We will continue to
delicious refreshment as a
Tennensui series.
25
Strategy in 2014
The second ranking* soft drink company in both the
French and Spanish beverage markets, the Orangina
Schweppes Groups offerings include Orangina and
Overseas Segment
Europe
SUMMARY
Other
Belgium
multitude of flavors.
France
Spain
The global beverage market is expanding overall, but is expected to contract in some countries. Meanwhile, global competition has become even more intense.
During fiscal 2013, SBF positioned each of Europe, Oceania,
Initiatives in Europe
ing the core brands in each area and to expand our business
520.0
bil.
60.5
26
bil.
Launched in 1927.
Lucozade is a long-selling energy sports drink with an
80-year history. It has a strong international presence
centered on the U.K.
U.K. Market Share
Energy drink market: No.1*
Sports drink market: No. 1*
Ribena
Launched in 1938.
+28.6% YoY
U.K.
Segment profit
Lucozade
(Including concentrates)
+19.7% YoY
27
Strategy in 2014
Asia
Oceania
Initiatives in Oceania
Initiatives in Asia
reductions.
throughout Asia.
activity cycles.
28
Americas
29
T
o indicate clearly to stakeholders which of the CSR activities are led primarily by SBF, the initiatives that have been
undertaken through SBFs policies under the Suntory Group
corporate philosophy and our independent initiatives are
shown as SBF originated activities.
urther details about the Suntory Groups CSR are described on our
F
website at the following URL: http://www.suntory.com/csr/
Our Mission
In Harmony with People and Nature
Our Vision
Growing for Good
them.
Our Values
Yatte Minahare
Go for it !
Suntory Group
Coexisting
with Nature
Shareholders
and Other
Investors
Global
Environment
Customers
Suntory Beverage
& Food
Local
Community
Business
Partners
30
Our Principles
The Suntory Group Code of Business Ethics
Employees
31
Forest
nature protection activities within the water resource cultivation areas around our plants.
Cultivation Activities
Mountain
environment.
Japan continues to shrink since the start of the program through the active
promotion of water-saving activities at the plants, and is currently estimated
to be 6,000 hectares by 2020.
The Natural Water Sanctuaries are also the site of the Suntory Groups ecosystem protection activities focused on wild
birds. We conduct these activities because it is important to
protect the entire ecosystem pyramid that supports the
habitat where wild birds live. Extending this concept beyond
our own back garden, we have been widening support for
wild bird protection activities overseas as well.
Environmental Targets
1. Reduction of water consumption at SBF Group*1
factories by 42%*2
- For example, by reducing the amount of water used
in the factories for cleaning and cooling of production
equipment and containers.
2. Reduction of CO2 emissions in the SBF Group*1 value
chain by 25%*2
32
33
PET bottle
Labels
External
packaging
Lightest*1 weight
produced in
Japan at 29.8 g
Reduced annual
CO2 emissions by
7,200 tons*3
Thinnest*2 in Japan
at 12 m
Changed from
cardboard to
transparent film
*1 420 kWh/y, the lowest annual energy consumption in Japan among the primary 25 product selection machines offered by major manufacturers in Japan as of
April 2014 (according to research conducted by SUNTORY FOODS LIMITED).
(2) Recycling
(approximately 5,200 kg of CO2 per household based on data from the National Institute of Environmental Studies)
PET bottles
recovered from
household waste
Recycle into
*1 Pulverization, cleansing, and return of used products to a material status. Recovered resin is processed for a regulated period under high temperatures and low pressure to remove
impurities from the regenerated materials, yielding reclaimed PET resin suitable for use in bottle production.
*2 Compared with virgin resin. Including the manufacturing process to produce PET resin.
34
Quality of PET
bottles recovered from
Japanese household
waste is good on a
global basis.
at Suntory Group
35
support.
global business.
Details
Company-Sponsored
Business School
Water
Product planning
and development
Ingredients
Manufacturing
Containers and
packaging
Delivery
Premium
gifts
36
37
Frucor Group
Improving Motivation
38
39
Corporate Governance
Basic Policy on Corporate
Governance
Board of Directors
SBF has formulated the following basic policy as the basis for the
based on compliance.
Remove
Appoint /
Risk Management
Committee
Compliance
Committee
Audit
Appoint /
Remove
Audit and
Supervisory Board
Remove
Cooperate
Consult
Information Security
Committee
Board of
Directors
Cooperate
Independent
Auditor
Audit
Environment Committee
Quality Assurance
Committee
Respond
Internal Audit
Division
Cooperate
(1) S
ystem to ensure the conformity of performance of
Group Companies
Domestic Manufacturing
Subsidiaries
audits by the Audit and Supervisory Board members. AccordDomestic Sales Subsidiaries
Overseas Subsidiaries
(2) S
ystem for the preservation and management of
information concerning the performance of
directors duties
described above.
SBFs corporate governance framework comprises a board of directors, Audit and Supervisory Board members and an Independent
Auditor. SBF had nine directors as of the publication date of this report. The term of office for directors is set at one year to create an
appropriate management system that is capable of responding flexibly to changes in the operating environment. SBF has an Audit
and Supervisory Board and there were four Audit and Supervisory Board members as of the date of publication of this report.
only protects and preserves information but also boosts corporate value through the utilization of information.
40
41
tion of business.
Division.
board of directors.
In addition to ensuring objectivity and rationality in transactions
between SBF and Group companies, including the parent company, SBF shall ensure the companys independence from the
parent company in transactions with the parent company.
An internal control system shall be arranged by and established
within the Group to ensure the appropriateness of financial
(3) S
election standards for outside director and
outside Audit and Supervisory Board members
SBF has not established its own standards relating to independence for selecting the outside director and outside Audit and
Supervisory Board members. However, SBF selects the outside
director and outside Audit and Supervisory Board members by
referring to the decision-making standards related to the independence of independent officers stipulated by the Tokyo Stock
Exchange. SBF also takes into account business and other relationships with the companies and groups where the outside
director and outside Audit and Supervisory Board members
serve in an executive capacity.
SBF has notified the Tokyo Stock Exchange of the appointment
of Outside Director Hitoshi Kashiwaki and Outside Audit and
Supervisory Board Member Yukihiko Uehara as independent
officers, as stipulated by the Tokyo Stock Exchange.
reporting.
42
43
Guidelines on Measures to P
rotect
Minority Shareholders When
Conducting Transactions and Other
Business with the C
ontrolling
Shareholders
The Group has decided to make decisions on transactions with
its controlling shareholders, including the transaction condi-
Outside director
Numbers of
eligible
Total by compensation and
directors
and
remuneration category
Audit and
Total compensaSupervisory
tion and other
Basic
remuneration compensation Bonuses Board members
459
274
185
10
12
12
24
26
24
12
2
2
Category
Suntory Beverage
& Food Limited
Consolidated
subsidiaries
38
50
74
18
18
Total
56
68
74
of these are set according to each directors position, responsibilities, and internal or external status, making reference to
survey data from specialist external institutions. The amounts for
bonuses are primarily determined by an index based on SBFs
consolidated operating income.
mined using a system designed to ensure an appropriate level of
compensation for each Audit and Supervisory Board members
role and responsibilities while enabling SBF to secure high-quality human resources.
In principle, Audit and Supervisory Board members compensation comprises only a basic salary (monthly, fixed amount).
Senior Audit and Supervisory Board members compensation
includes a bonus (annual, performance linked) in addition to the
basic salary in consideration of their contribution to SBFs performance. The levels of these are set according to each members
position and responsibility, and internal or external status,
making reference to survey data from specialist external institutions. The amounts for bonuses are primarily determined by an
Millions of yen
Total by compensation
and compensation type
Name
Nobuhiro Torii
39
influence.
44
Director
66
39
105
45
Directors
Nobuhiro Torii
Yoshihiko Kakimi
Saburo Kogo
Nobuhiro Kurihara
Shinichiro Hizuka
Financial Section
Managements Discussion and Analysis of Financial Condition
and Results of Operations.................................................................... 48
Business and Other Risks....................................................................... 54
Consolidated Balance Sheet................................................................... 60
Consolidated Statement of Income........................................................ 62
Consolidated Statement of Comprehensive Income............................... 63
Consolidated Statement of Changes in Equity........................................ 64
Director
Masato Tsuchida
Director
Yasuhiko Kamada
Director
Shigehiro Aoyama
Outside Director
Hitoshi Kashiwaki
Seiichiro Hattori
46
Toru Yamamoto
Yukihiko Uehara
Harumichi Uchida
47
In the Japan segment, the Group worked to grow its business and enhance profitability by fostering and strengthening
core brands, creating new demand through the implementation
of new product launches, and carrying out aggressive marketing
activities including cross-brand consumer sales campaigns.
In the overseas segment, the Group focused on expanding its
business and boosting profitability through such means as fostering core brands in each overseas market and launching new products in emerging countries. In April, earnings were given a steady
boost with the launch and start of operations of the beverage
business in Vietnam at the Groups new joint venture with
PepsiCo, Inc. In December, SBF obtained the commercial rights
and production facilities for Lucozade and Ribena, two of the UKs
iconic beverage brands, from UK-based GlaxoSmithKline plc.
In the fiscal year ended December 31, 2013, the global economy
continued to pick up at a moderate pace and showed some
underlying strength, despite lingering concerns about downside
risks. The Japanese economy underwent a moderate recovery as
a result of an improvement in corporate earnings and a pickup in
consumer spending reflecting upward movement in stock prices
and yen depreciation.
Against this backdrop, the Suntory Beverage & Food Limited
Group (the Group) worked to increase demand with a focus on
reinforcing its brands. In addition, while the Group made efforts
to strengthen earning capacity by improving quality and reducing
costs with the use of group synergies, it also boosted investment
in marketing with a view to the future and enhanced its business
foundation outside Japan.
Net Sales
(billions of yen)
(billions of yen)
1,200
(billions of yen)
(%)
80
40
60
30
Segment Performance
In the fiscal year ended December 31, 2013, net sales increased
13.0% year on year to 1,121.4 billion, mainly due to strong
performances by new products of mainstay brands and the
launch of a new joint venture with PepsiCo, Inc. in Vietnam.
Gross profit rose 12.8% year on year to 618.6 billion.
Selling, general and administrative expenses amounted to
545.9 billion. Operating income rose 24.4% year on year to
72.7 billion. The operating margin improved 0.6 of a percentage point from the previous year to 6.5%.
Other expenses net increased 123.8% year on year to
10.3 billion due to increases in foreign currency exchange loss
net, impairment loss and restructuring charges.
As a result of the above, net income rose 33.4% to 31.2
billion, and the net margin improved 0.4 of a percentage point
from the previous year to 2.8%. Basic net income per share was
118.79.
The Group uses EBITDA (calculated as the aggregate of (i)
operating income, (ii) depreciation and amortization and (iii)
amortization of goodwill) as a key performance indicator to monitor trends in the Groups operating results. In the fiscal year
ended December 31, 2013, EBITDA was 139.6 billion, an
increase of 21.8% year on year.
Japan Segment
Net sales: 716.9 billion (+4.1% YoY)
Segment profit: 45.4 billion (+27.5% YoY)
(Reference) EBITDA: 75.0 billion (+18.6% YoY)
In the Japan segment, the Group made further efforts to enhance
and foster core brands, particularly the seven brands mentioned
below. In tandem, the Group launched new products to offer
new value to customers and made efforts to further enhance its
business foundation.
In the BOSS coffee range, the Group complemented core
products Rainbow Mountain Blend, Zeitaku Bito, Muto Black,
Caf au Lait and Cho with the launch of new product Gran
Aroma, which is distinctive for its opulent aroma. The Group also
carried out sales promotion activities, including consumer sales
campaigns. As a result, in contrast with the overall canned coffee
market, for which a year-on-year sales decline was expected, the
Group achieved a year-on-year increase in sales volume.
In the Iyemon green tea range, sales of the two core brands
of Iyemon and Zeitaku Reicha were strong thanks to aggressive
marketing activities. Furthermore, sales of Iyemon Tokucha, a
beverage launched in October that is approved as a FOSHU (a
Food for Specified Health Uses) by the Consumer Affairs Agency
of Japan, exceeded the initial sales target. As a result, sales
volume of this range grew substantially.
EBITDA
(billions of yen)
(billions of yen)
150
800
80
600
60
400
40
200
20
1,000
800
100
600
40
20
400
50
2
20
10
200
2012
2013
2012
48
2013
n
2012
2013
n
2012
2013
2012
2013
49
Overseas Segment
Net sales: 404.5 billion (+33.3% YoY)
Segment profit: 50.5 billion (+18.9% YoY)
(Reference) EBITDA: 64.7 billion (+25.6% YoY)
In the overseas segment, the Group positioned Europe, Oceania,
Asia and the Americas as markets with growth potential and
worked to strengthen its marketing activities by such means as
strengthening existing brands and launching Suntory brands.
In Europe, the Orangina Schweppes Group worked to reinforce brands such as Orangina and Schweppes by continuing to
invest aggressively in marketing for these brands with the aim of
strengthening the business foundation and boosting profitability.
Nevertheless, the economic environment continued to be tough
and sales volumes in the fiscal year under review were slightly
down year on year.
(million cases)
(billions of yen)
120
500
100
400
80
300
60
80
60
(billions of yen)
(billions of yen)
30
160
120
20
100
80
200
40
40
100
20
20
60
10
40
20
Water
RTD Coffee
n2012 n2013
50
R&D Activities
140
100
RTD Tea
Cola
Drinks
Carbonates Functional
Drinks
Fruit Juices
RTD
Black Tea
Others
2012
2013
Europe
n2012 n2013
Oceania
Asia
Americas
Europe
Oceania
Asia
Americas
n2012 n2013
51
Cash Flows
Capital Expenditures
In the fiscal year ended December 31, 2013, the Group spent a
total of 62.6 billion on capital expenditures to increase its manufacturing capacity, strengthen its sales ability, improve the quality of its products and streamline its businesses.
In the Japan segment, the Group spent 34.4 billion on
capital expenditures, primarily to increase its manufacturing
capacity, streamline its businesses and install vending machines.
In the overseas segment, the Group spent 28.2 billion on
capital expenditures, primarily to increase its manufacturing
capacity and streamline its businesses.
Total Assets
Equity and
Shareholders Equity Ratio
(billions of yen)
(billions of yen)
1,500
Cash Flows
(%)
600
60
(billions of yen)
200
100
1,000
400
Dividend Policy
40
0
As noted above, the Group uses internal reserves for strategic investments in future business expansion and capital expenditures to strengthen its core business.
SBFs articles of incorporation provide that interim dividends
with a record date of June 30 every year may be declared by a
resolution of the board of directors. From the fiscal year ending
December 31, 2014, SBFs basic policy is to declare dividends
twice a year in the form of interim and year-end dividends.
Determinations regarding year-end dividends are made by
the general meeting of shareholders, while interim dividends are
determined by the board of directors.
*This figure represents the sum of net income and amortization of
goodwill.
<Reference>
EBITDA (the sum of each segment profit and depreciation and
amortization) is expected to be 160.0 billion, up 14.6% year on
year, and net income before amortization of goodwill is expected
to be 58.5 billion, up 7.5% year on year.
The main foreign exchange rates underlying the outlook for
the 2014 fiscal year are 130 against the euro and 100 against
the U.S. dollar.
100
500
200
20
200
2012
2013
2012
2013
n
300
2012
2013
52
53
The following risks could have an impact on the Groups operating results and financial condition. Please note that forwardlooking statements made in this section reflect the Groups
judgment as of the publication date of this annual report.
55
56
57
1) Details on our main relationships with Suntory Holdings Limited and other subsidiaries are as follows:
Type of transaction
Payment of brand royalties
Counterparty
Suntory Holdings Limited
58
59
Thousands of
U.S. dollars
(Note 1)
Millions of yen
ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 15)
Short-term investments (Note 4)
Notes and accounts receivable (Note 15):
Trade
Other
Allowance for doubtful accounts
Inventories (Note 5)
Deferred tax assets (Note 10)
Other current assets
Total current assets
2012
26,061
9
113,710
13,019
(389)
44,756
9,539
12,191
218,896
35,927
86,552
387,965
7,144
8,859
526,447
(291,108)
235,339
8,247
7,535
155
1,898
349,929
7,284
3,756
12,208
(797)
390,215
844,450
2013
45,851
19
125,412
17,532
(321)
67,655
11,403
15,770
283,321
40,032
102,966
478,702
10,306
8,645
640,651
(327,830)
312,821
9,004
8,816
113
2,936
400,050
184,943
3,479
52,061
(842)
660,560
1,256,702
2013
$435,060
180
1,189,980
166,354
(3,046)
641,949
108,198
149,635
2,688,310
379,846
977,000
4,542,196
97,789
82,029
6,078,860
(3,110,637)
2,968,223
85,435
83,651
1,072
27,858
3,795,901
1,754,844
33,011
493,984
(7,989)
6,267,767
$11,924,300
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2012
2013
2013
286,736
26,123
122,901
51,304
$1,166,154
486,801
94,089
76,569
3,247
5,103
36,459
8,860
537,186
100,423
90,190
3,559
11,227
46,439
20,594
446,637
952,870
855,774
33,770
106,528
440,640
195,408
4,237,945
33,730
6,815
32
10,041
46,509
5,861
102,988
132,107
6,320
24
10,562
58,908
9,175
217,096
1,253,506
59,968
228
100,218
558,952
87,058
2,059,930
30,000
54,395
122,609
168,384
192,702
141,077
1,597,723
1,828,466
1,338,619
963
265
54,810
558,201
34,768
592,969
1,256,702
9,137
2,514
520,068
5,296,527
329,898
5,626,425
$11,924,300
430
436
(17,521)
190,349
13,927
204,276
844,450
60
61
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2012
NET SALES
2013
2013
992,160
1,121,362
$10,640,118
COST OF SALES
Gross profit
443,656
548,504
502,731
618,631
4,770,196
5,869,922
490,057
58,447
545,915
72,716
5,179,951
689,971
451
(5,219)
(51)
487
(4,763)
(1,665)
4,621
(45,194)
(15,799)
3,811
(193)
(529)
(2,857)
(4,587)
(1,176)
(3,863)
714
(10,266)
(11,159)
(36,654)
6,775
(97,410)
53,860
62,450
592,561
21,572
5,466
27,038
25,599
473
26,072
242,898
4,488
247,386
26,822
36,378
345,175
3,437
5,182
49,170
23,385
31,196
$296,005
2012
26,822
170
335
33,883
590
34,978
2013
36,378
534
(171)
74,513
1,282
76,158
2013
$345,175
5,067
(1,623)
707,022
12,164
722,630
COMPREHENSIVE INCOME
61,800
112,536
$1,067,805
56,393
5,407
103,890
8,646
$985,767
82,038
U.S. dollars
(Note 1)
Yen
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2012
2013
108.27
59.79
118.79
58.00
2013
$1.13
0.55
62
63
Millions of yen
Outstanding
Number of Shares of
Common Stock
Common Stock
30,000
30,000
138,384
168,384
Capital Surplus
75,042
(20,647)
54,395
138,384
(77)
192,702
Millions of yen
Accumulated Other Comprehensive Income (Loss)
Unrealized Gain on
Deferred Gain (Loss)
Foreign Currency
Available-for-Sale
on Derivatives under
Translation
Securities
Hedge Accounting
Adjustments
Total
Stock
Acquisition Rights
51
(51)
Minority Interests
Retained Earnings
109,749
23,385
(10,525)
122,609
31,196
(12,915)
308
(121)
141,077
Total Equity
260
88
(50,011)
165,179
23,385
(10,525)
16,712
181,891
23,385
(10,525)
170
430
533
963
348
436
(171)
265
32,490
(17,521)
72,331
54,810
(20,647)
32,957
190,349
31,196
276,768
(12,915)
308
(77)
(121)
72,693
558,201
(2,785)
13,927
20,841
34,768
(20,647)
30,172
204,276
31,196
276,768
(12,915)
308
(77)
(121)
93,534
592,969
Outstanding
Number of Shares of
Common Stock
Common Stock
432,000
215,568,000
93,000,000
309,000,000
$284,657
1,313,066
$1,597,723
Capital Surplus
$516,131
1,313,066
(731)
$1,828,466
$4,080
5,057
$9,137
$4,137
(1,623)
$2,514
$(166,249)
686,317
$520,068
$1,806,140
296,005
2,626,132
(122,545)
2,923
(731)
(1,148)
689,751
$5,296,527
Stock
Acquisition Rights
Retained Earnings
$1,163,384
296,005
(122,545)
2,923
(1,148)
$1,338,619
2012
OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Amortization of goodwill
Impairment loss
Loss on disposal of property, plant and equipment
Net gain on sales of property, plant and equipment
Increase in notes and accounts receivable trade
Decrease (increase) in inventories
Decrease in notes and accounts payable trade
Decrease in interest and dividends receivable
Increase in interest payable
Income taxes paid
Other net
Net cash provided by operating activities
INVESTING ACTIVITIES:
Net (increase) decrease in short-term loan receivables
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of investment securities
Proceeds from sales of investment securities
Purchases of investments in subsidiaries and affiliates
Purchases of investments in subsidiaries resulting in changes in
consolidation scope net of cash acquired
Acquisition of business
Other net
Net cash used in investing activities
FINANCING ACTIVITIES:
Net increase (decrease) in short-term bank loans
Net increase in commercial papers
Proceeds from long-term debt
Repayments of long-term loans
Repayments of lease obligations
Cash dividends
Cash dividends to minority shareholders
Proceeds from issuance of common stocks
Other net
Net cash (used in) provided by financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON
CASH AND CASH EQUIVALENTS
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
Minority Interests
$132,147
197,751
$329,898
Total Equity
$1,938,287
296,005
2,626,132
(122,545)
2,923
(731)
(1,148)
887,502
$5,626,425
Thousands of
U.S. dollars
(Note 1)
Millions of yen
53,860
2013
62,450
2013
$592,561
36,570
19,666
193
3,451
(77)
(284)
2,600
(1,751)
494
42
(23,985)
(4,949)
85,830
43,719
23,211
1,176
3,247
(72)
(2,906)
(4,682)
(4,963)
741
163
(24,085)
16,083
114,082
414,831
220,239
30,809
11,159
(683)
(27,574)
(44,425)
(47,092)
7,031
1,547
(228,532)
152,604
1,082,475
(2)
(51,631)
403
(544)
58
(23,703)
25
(59,658)
2,248
(500)
2
237
(566,069)
21,330
(4,744)
19
(840)
385
(75,874)
(12,209)
(220,098)
(423)
(290,613)
(115,846)
(2,088,414)
(4,014)
(2,757,501)
21,618
1,832
(23,762)
(1,589)
(10,525)
(2,943)
120
(15,249)
(62,412)
16,000
57,759
(78,966)
(1,682)
(12,915)
(2,841)
275,466
190,409
(592,200)
151,817
548,050
(749,274)
(15,960)
(122,545)
(26,957)
2,613,777
1,806,708
3,149
5,912
56,096
19,790
187,778
28,205
26,061
247,282
26,061
45,851
$435,060
(2,144)
64
65
the exchange rate at December 31, 2013. Such translations should not be
construed as representations that the Japanese yen amounts could be
converted into U.S. dollars at that or any other rate.
The Company is a 59.48% owned subsidiary of Suntory Holdings
Limited (the Parent), a pure holding company that was established on
February 16, 2009 through a stock transfer from Suntory Limited (now,
Suntory Liquors Limited), a company founded in Osaka in 1899. The
Parent and its subsidiaries (together, the Suntory Group) produce and
distribute various popular brands of ready-to-drink beverages in various
alcoholic and non-alcoholic beverage categories. The Company was
established on January 23, 2009 and commenced the non-alcoholic
beverage and food business among the Suntory Group on April 1, 2009.
The Company was transferred such business by way of corporate split in
connection with the reorganization of Suntory Group that adopted the
holding company structure mentioned above. On July 3, 2013, the
Companys shares were initially listed on the Tokyo Stock Exchange. See
Note 9 (b).
66
67
68
Due to the issuance of the Companys common stocks and disposals of the Companys shares by the Parent during the year ended
December 31, 2013, the Company is no longer a wholly owned subsidiary of the Parent and, accordingly, the Company and its domestic consolidated subsidiaries have been withdrawn from the consolidated tax
group of the Parent.
(s) Foreign Currency Transactions All short-term and long-term monetary receivables and payables denominated in foreign currencies are
translated into Japanese yen by applying the exchange rates at the
balance sheet date. The foreign exchange gains and losses from translation are recognized in the consolidated statements of income to the
extent that they are not hedged by forward exchange contracts.
(t) Foreign Currency Consolidated Financial Statements The balance
sheet accounts of the consolidated foreign subsidiaries are translated
into Japanese yen by applying the current exchange rate as of the balance sheet date, except for equity, which is translated at the historical
rate. Differences arising from such translation are shown as Foreign
currency translation adjustments under accumulated other comprehensive income in a separate component of equity.
Revenue and expense accounts of consolidated foreign subsidiaries
are translated into Japanese yen at the average exchange rate for their
accounting periods.
(u) Derivatives and Hedge Activities The Group uses derivative financial
instruments to manage its exposures to fluctuations in foreign exchange
rates, interest rates, and commodity prices. These derivative financial
instruments are utilized by the Group to reduce volatility risks of foreign
currency exchange rates, interest rates, and commodity prices. The Group
does not enter into derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions
are classified and accounted for as follows: 1) all derivatives are recognized as either assets or liabilities and measured at fair value, and gains or
losses on derivative transactions are recognized in the consolidated
statement of income and 2) for derivatives used for hedging purposes, if
derivatives qualify for hedge accounting because of high correlation and
effectiveness between the hedging instruments and the hedged items,
gains, or losses on derivatives are deferred until maturity of the hedged
transactions. The foreign currency forward contracts and foreign currency
option contracts employed to hedge foreign exchange exposures for
import purchases, and forward contracts applied for forecasted (or committed) transactions are measured at fair value, but the unrealized gains/
losses are deferred until the underlying transactions are completed.
Trade and other payables denominated in foreign currencies, for
which foreign currency forward contracts are used to hedge the foreign
currency fluctuations, are translated at the contracted rate, if the forward
contracts qualify for hedge accounting.
Interest rate and currency swaps, which qualify for hedge accounting
and meet specific matching criteria, are not remeasured at market value,
but the differential paid or received under the swap agreements is recognized and included in interest expense or income, and hedged items
denominated in a foreign currency are translated at the contracted rates.
Commodity swap contracts, which qualify for hedge accounting,
are measured at market value at the balance sheet date, and any unrealized gains or losses are deferred until maturity as deferred gains (losses)
under hedge accounting in a separate component of equity.
(v) Per Share Information Basic net income per share (EPS) is computed
by dividing net income available to common shareholders by the
weighted-average number of common shares outstanding for the period.
Cash dividends per share presented in the accompanying consolidated statements of income represent dividends applicable to the
respective year, including dividends to be paid after the end of the year.
(w) Accounting Changes and Error Corrections In December 2009, the
ASBJ issued ASBJ Statement No. 24, Accounting Standard for Accounting
Changes and Error Corrections and ASBJ Guidance No. 24, Guidance on
Accounting Standard for Accounting Changes and Error Corrections.
This accounting standard and the guidance for (1) and (2) above are
effective for the end of annual periods beginning on or after April 1,
2013, and for (3) above are effective for the beginning of annual periods
beginning on or after April 1, 2014, or for the beginning of annual periods beginning on or after April 1, 2015, subject to certain disclosure in
March 2015, both with earlier application being permitted from the
beginning of annual periods beginning on or after April 1, 2013. However, no retrospective application of this accounting standard to consolidated financial statements in prior periods is required.
The Group expects to apply the revised accounting standard for (1)
and (2) above from the end of the annual period beginning on January 1,
2014, and for (3) above from the beginning of the annual period beginning on January 1, 2015, and is in the process of measuring the effects of
applying the revised accounting standard in future applicable periods.
Accounting Standards for Business Combinations and Consolidated
Financial Statements On September 13, 2013, the ASBJ issued revised
ASBJ Statement No. 21, Accounting Standard for Business Combinations,
revised ASBJ Guidance No. 10, Guidance on Accounting Standards for
Business Combinations and Business Divestitures, and revised ASBJ Statement No. 22, Accounting Standard for Consolidated Financial Statements.
Major accounting changes are as follows:
(1) Transactions with noncontrolling interest
Under the current requirements, any difference between the fair
value of the consideration received or paid and the amount by
which the minority interest is adjusted, is accounted for as an
adjustment of goodwill or as profit or loss in the consolidated statement of income, if the parent purchases or sells ownership interests
in its subsidiary and retains control over its subsidiary. Under the
revised requirement, such difference shall be accounted for as capital surplus as long as the parent retains control over its subsidiary.
(2) Acquisition-related costs
Under the current requirements, acquisition-related costs, such as
advisory fees or professional fees, are included in the acquisition
costs of the investment. Under the revised requirements,
acquisition-related costs shall be accounted for as expenses in the
periods in which the costs are incurred.
(3) Provisional accounting treatments for a business combination
If the initial accounting for a business combination is incomplete by
the end of the reporting period in which the business combination
occurs, an acquirer shall report in its financial statements provisioned amounts for the items for which the accounting is incomplete. Under the current accounting standard guidance, the
adjustments to provisional amounts recorded in a business combination are recognized as profit or loss in the year in which the
measurement is completed. Under the revised accounting standard
guidance, during the measurement period, which shall not exceed
one year from the acquisition, the acquirer shall retrospectively
adjust the provisional amounts recognized at the acquisition date
to reflect new information obtained about facts and circumstances
that existed as of the acquisition date and that would have affected
the measurement of the amounts recognized as of that date. Such
adjustments shall be recognized as if the accounting for the business combination had been completed at the acquisition date.
(4) Presentation of the consolidated balance sheet
In the consolidated balance sheet, minority interest under the
current requirements will be changed to noncontrolling interest
under the revised requirements.
(5) Presentation of the consolidated statement of income
In the consolidated statement of income, income before minority
interest under the current requirements will be changed to net
income under the revised requirements, and net income under
the current requirements will be changed to net income attributable to owners of the parent under the revised requirements.
69
Short-term investments:
Time deposits
Investment securities:
Equity securities
2013
2013
19
$180
7,535
8,816
$83,651
Millions of yen
2012
Assets acquired and cash used for the acquisition in 2013 were as follows:
Millions of yen
Current assets
Noncurrent assets including trademarks and other intangibles
Goodwill
Total acquisition costs
Cash used for acquisition
2012
The costs and aggregate fair values of marketable securities included in short-term investments and investment securities as of December 31, 2012
and 2013, were as follows:
3. Business Combination
Acquisition of Lucozade and Ribena Business from GlaxoSmithKline plc
On December 31, 2013, the Group acquired two non-alcoholic beverage brands of the United Kingdom (U.K.), Lucozade and Ribena,
and related assets from GlaxoSmithKline plc (GSK).
Through the acquisition, the Group aims to achieve further expansion of its non-alcoholic beverage business in Europe and also enhance
its corporate value by obtaining such two brands with large market share
centered on the beverage market in the U.K. and a core business with
historical and iconic value based in the U.K. Furthermore, by taking over
the worldwide distribution rights of those brands held by GSK, the Group
aims to obtain a new business basis in emerging countries and other
areas, and also to expand sales of the Groups own brands in such areas.
Thousands of
U.S. dollars
Millions of yen
8,585
202,837
8,676
220,098
220,098
Thousands of
U.S. dollars
$81,459
1,924,632
82,323
2,088,414
$2,088,414
Acquisition Cost
Available-for-sale securities:
Carrying amounts exceeding their acquisition cost:
Equity securities
Acquisition costs exceeding their carrying amounts:
Equity securities
Total
Carrying Amounts
2013
Unrealized Gain
(Loss)
Acquisition Cost
Carrying Amounts
Unrealized Gain
(Loss)
879
1,596
717
1,479
2,957
1,478
279
1,158
232
1,828
(47)
670
109
1,588
85
3,042
(24)
1,454
Available-for-sale securities:
Carrying amounts exceeding their acquisition cost:
Equity securities
Acquisition costs exceeding their carrying amounts:
Equity securities
Total
Carrying Amounts
Unrealized Gain
(Loss)
$14,034
$28,058
$14,024
1,034
$15,068
806
$28,864
(228)
$13,796
Available-for-sale securities whose fair value is not readily determinable as of December 31, 2012 and 2013, were as follows:
Carrying Amounts
Thousands of
U.S. dollars
Millions of yen
Available-for-sale:
Equity securities
2012
2013
2013
5,707
5,774
$54,787
Goodwill in the above table is the amount converted from the local currency (GBP) to Japanese yen at the spot rate of the transaction date.
Acquisition of PEPSICO INTERNATIONAL VIETNAM COMPANY
During the year ended December 31, 2013, the Group acquired 51% of the shares of PEPSICO INTERNATIONAL VIETNAM COMPANY. Assets and
liabilities of the company and net cash used for the acquisition were as follows:
Millions of yen
Current assets
Noncurrent assets
Goodwill
Current liabilities
Noncurrent liabilities
Minority interests
Total acquisition costs
Cash and cash equivalents
Net acquisition costs
Net cash used for acquisition
11,208
27,775
2,937
(8,111)
(3,414)
(13,454)
16,941
(4,731)
12,210
12,210
Thousands of
U.S. dollars
$106,348
263,545
27,868
(76,962)
(32,394)
(127,659)
160,746
(44,890)
115,855
$115,855
Sales of securities classified as available-for-sale securities for the years ended December 31, 2012 and 2013, were as follows:
2012
Amount sold
Total gain on sale
Total loss on sale
2013
2
1
(0)
$19
9
(0)
Millions of yen
2012
2013
58
18
5. Inventories
Finished products
Work in process
Raw materials and supplies
Total
70
Thousands of
U.S. dollars
Millions of yen
27,732
2,403
14,621
44,756
2013
2013
40,141
2,991
24,523
67,655
$380,881
28,380
232,688
$641,949
71
6. Long-Lived Assets
The Group reviewed its long-lived assets for impairment at year-end and, as a result, recognized impairment losses of 1,176 million ($11,159 thousand)
for the year ended December 31, 2013, to adjust the carrying amounts of the relevant assets or asset groups to recoverable amounts. The recoverable
amounts of these assets or asset groups were the higher of the discounted cash flows from the continued use and eventual disposition of the assets or
the net selling price at disposition. The discount rate mainly used for computation of present values of future cash flows was 11.4% for the year ended
December 31, 2013. The details were as follows:
2013
Location
Overseas:
Spain, and other two locations
Japan:
Inagi City in Tokyo, and another location
Use
Type
Idle assets
The liability for employees retirement benefits as of December 31, 2012 and 2013, consisted of the following:
Thousands of
U.S. dollars
Millions of yen
2012
Short-term loans, principally from the Parent and banks, weighted-average rate of 0.95%
as of December 31, 2012 and 1.08% as of December 31, 2013
Commercial papers, weighted-average rate of 0.08% as of December 31, 2013
Short-term borrowings
2013
2013
286,736
286,736
106,901
16,000
122,901
$1,014,337
151,817
$1,166,154
Long-term debt as of December 31, 2012 and 2013, consisted of the following:
2012
Loans, from banks and other financial institutions, due through 2021, rates ranging from 0.49% to 15.25%:
Unsecured
Obligations under finance leases
Total
Less current portion
Long-term debt less current portion
54,962
4,891
59,853
26,123
33,730
Thousands of
U.S. dollars
2013
2013
179,218
4,193
183,411
51,304
132,107
$1,700,522
39,785
1,740,307
486,801
$1,253,506
2014
2015
2016
2017
2018 and thereafter
Total
Millions of yen
49,872
9,304
88,788
9,812
21,442
179,218
$(226,075)
161,827
(64,248)
14,072
(9,792)
$(59,968)
The components of net periodic benefit costs for the years ended December 31, 2012 and 2013, were as follows:
Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Net periodic benefit costs
Contributions to the defined contribution pension plan
Total
2012
2013
2013
943
281
(262)
300
(368)
894
788
1,682
1,234
361
(374)
151
(145)
1,227
916
2,143
$11,709
3,425
(3,549)
1,433
(1,376)
11,642
8,692
$20,334
Reimbursement cost as to the Companys employees temporarily transferred from the Parent are included in the service costs above.
Assumptions used for the years ended December 31, 2012 and 2013, are set forth as follows:
2012
Thousands of
U.S. dollars
$473,214
88,281
842,471
93,102
203,454
$1,700,522
Thousands of
U.S. dollars
Millions of yen
Annual maturities of long-term loans from banks and other financial institutions, as of December 31, 2013, were as follows:
Years Ending December 31
2013
(23,826)
17,055
(6,771)
1,483
(1,032)
(6,320)
Thousands of
U.S. dollars
2012
Millions of yen
2013
(18,492)
11,300
(7,192)
3,211
(2,834)
(6,815)
Discount rate
Expected return on assets
Amortization period of prior service cost
Recognition period of actuarial loss
Mainly
Mainly
Mainly
Mainly
2.0%
3.0%
15 years
15 years
2013
Mainly
Mainly
Mainly
Mainly
1.7%
2.5%
15 years
15 years
The carrying amounts of assets pledged as collateral for long-term bank loans of 1,688 million ($16,017 thousand) as of December 31, 2013, were
as follows:
Millions of yen
72
1,535
4,768
6,303
Thousands of
U.S. dollars
$14,565
45,241
$59,806
73
9. Equity
(a) The Companies Act of Japan
Japanese companies are subject to the Companies Act of Japan (the
Companies Act). The significant provisions in the Companies Act that
affect financial and accounting matters are summarized below:
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes, which, in the aggregate, resulted in a normal effective statutory tax rate of approximately 40.7% for the year ended December 31, 2012 and 38.0% for the year ended December 31, 2013.
The tax effects of significant temporary differences and tax loss carryforwards, which resulted in deferred tax assets and liabilities as of December
31, 2012 and 2013, were as follows:
Thousands of
U.S. dollars
Millions of yen
2012
2013
2013
7,626
4,114
3,223
2,723
1,817
4,676
24,179
(6,214)
17,965
7,690
5,985
3,629
2,937
1,834
6,134
28,209
(7,467)
20,742
$72,967
56,789
34,434
27,868
17,402
58,203
267,663
(70,851)
196,812
(24,668)
(19,811)
(2,022)
(1,563)
(3,403)
(51,467)
(33,502)
(37,726)
(21,691)
(2,254)
(1,508)
(2,560)
(65,739)
(44,997)
(357,966)
(205,816)
(21,387)
(14,309)
(24,291)
(623,769)
$(426,957)
Reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statements of income for the years ended December 31, 2012 and 2013, were as follows:
Normal effective statutory tax rate
Income not taxable for income tax purposes
Differences in tax rate of overseas consolidated subsidiaries
Amortization of goodwill
Accumulated earnings tax
Other net
Actual effective tax rate
2012
2013
40.7%
(3.9)
(6.9)
13.0
7.1
0.2
50.2%
38.0%
(3.8)
(1.9)
12.3
(2.9)
41.7%
The accumulated earnings tax was imposed due to the first-time adoption of the consolidation tax system by the Parent as of December 31, 2012.
The payment of the tax was exempted from the Parent and such amount was included as a gain in the consolidated statement of income for the year
ended December 31, 2012.
74
75
Acquisition cost
Accumulated depreciation
Net leased property
Machinery and
Equipment
786
(522)
264
11,945
(6,064)
5,881
Others
733
(642)
91
Total
13,464
(7,228)
6,236
Millions of yen
2013
Acquisition cost
Accumulated depreciation
Net leased property
Buildings and
Structures
Machinery and
Equipment
186
(127)
59
9,619
(5,116)
4,503
Others
109
(100)
9
Total
9,914
(5,343)
4,571
Acquisition cost
Accumulated depreciation
Net leased property
Buildings and
Structures
Machinery and
Equipment
$1,765
(1,205)
$560
$91,271
(48,544)
$42,727
Others
$1,034
(949)
$85
Total
$94,070
(50,698)
$43,372
Thousands of
U.S. dollars
2012
2013
2013
1,175
5,126
6,301
813
3,797
4,610
$7,714
36,028
$43,742
Depreciation expense and interest expense for finance leases as of December 31, 2012 and 2013, were as follows:
Millions of yen
Depreciation expense
Interest expense
The Group utilizes the finance system provided by the Parent. The
finance system satisfies the Groups short-term cash demands and
investments of cash surplus, if any. Besides the finance system provided
by the Parent, the Group has been financed by banks and other financial
institutions by way of loan or commercial papers, and gradually ceased
the use of the Parents finance system. The Group sometimes invests
cash surpluses in low-risk financial instruments, but does not invest for
trading or speculative purposes. The Group takes long-term bank loans
to satisfy its long-term cash demands. Derivatives are used not for trading or speculative purposes but to manage exposure to financial risks as
described in (2) below.
2012
Buildings and
Structures
Thousands of
U.S. dollars
2012
2013
2013
1,224
96
1,099
58
$10,428
550
Depreciation expense and interest expense, which are not reflected in the accompanying consolidated statements of income, are computed by the
straight-line method and the effective interest method, respectively.
Minimum rental commitments under noncancelable operating leases as of December 31, 2012 and 2013, were as follows:
Millions of yen
2012
76
4,431
15,752
20,183
2013
7,133
22,913
30,046
Thousands of
U.S. dollars
2013
$67,682
217,411
$285,093
77
(b) F
inancial instruments whose fair value cannot be reliably determined
Millions of yen
Carrying Amount
Fair Value
Carrying Amounts
Unrealized Loss
26,061
113,710
13,019
1,828
154,618
26,061
113,710
13,019
1,828
154,618
Short-term borrowings
Current portion of long-term debt
Notes and accounts payable trade
Notes and accounts payable other
Consumption taxes payable
Accrued income taxes
Accrued expenses
Long-term debt
Total
286,736
26,123
94,089
76,569
3,247
5,103
36,459
33,730
562,056
286,736
26,802
94,089
76,569
3,247
5,103
36,459
35,356
564,361
(679)
(1,626)
(2,305)
Carrying Amount
Fair Value
45,851
125,412
17,532
3,042
191,837
Short-term borrowings
Current portion of long-term debt
Notes and accounts payable trade
Notes and accounts payable other
Consumption taxes payable
Accrued income taxes
Accrued expenses
Long-term debt
Total
122,901
51,304
100,423
90,190
3,559
11,227
46,439
132,107
558,150
122,901
52,338
100,423
90,190
3,559
11,227
46,439
134,226
561,303
(1,034)
(2,119)
(3,153)
Fair Value
$435,060
1,189,980
166,354
28,864
$1,820,258
$435,060
1,189,980
166,354
28,864
$1,820,258
$
$
Short-term borrowings
Current portion of long-term debt
Notes and accounts payable trade
Notes and accounts payable other
Consumption taxes payable
Accrued income taxes
Accrued expenses
Long-term debt
Total
$1,166,154
486,801
952,870
855,774
33,770
106,528
440,640
1,253,506
$5,296,043
$1,166,154
496,613
952,870
855,774
33,770
106,528
440,640
1,273,612
$5,325,961
$
(9,812)
(20,106)
$(29,918)
78
$85,435
54,787
Due in One
Year or Less
26,061
113,710
13,019
152,790
Due after
10 Years
Due in One
Year or Less
45,851
125,412
17,532
188,795
Due after
10 Years
Due in One
Year or Less
$435,060
1,189,980
166,354
$1,791,394
Due after
10 Years
Please see Note 7 for annual maturities of long-term debt and Note 14 for obligations under finance leases.
Investment securities
The fair values of investment securities are measured at the quoted
market price of the stock exchange for equity instruments and at the
2013
9,004
5,774
Millions of yen
45,851
125,412
17,532
3,042
191,837
2013
8,247
5,707
Millions of yen
Unrealized Loss
2012
(5) Maturity analysis for financial assets and securities with contractual maturities
Millions of yen
December 31, 2013
Thousands of
U.S. dollars
Millions of yen
Unrealized Loss
The Group is exposed to certain market risks arising from its forward exchange contracts, swap agreements, currency option contracts,
and commodity price swap contracts. The Group is also exposed to the
risk of credit loss in the event of nonperformance by the counterparties
to the currency, interest, and commodity price contract; however, the
Group does not anticipate nonperformance by any of these counterparties, all of whom are financial institutions with high credit ratings.
quoted price obtained from the financial institution for certain debt
instruments. Information on the fair value for investment securities by
classification is included in Note 4.
Long-term debt
The fair value of long-term debt is determined by discounting the cash
flows related to the debt at the Groups assumed corporate borrowing rate.
Derivatives
Information on the fair value for derivatives is included in Note 16.
79
Contract
Amount
Contract
Amount Due
after One Year
Millions of yen
Fair Value
(36)
9
6
(2)
(0)
Unrealized
(Loss) Gain
4,758
238
1,140
470
155
(36)
9
6
(2)
(0)
414
8
11
0
11
0
190
112
(0)
(0)
(0)
(0)
Millions of yen
Contract
Amount
Contract
Amount Due
after One Year
Fair Value
Unrealized
(Loss) Gain
5,228
186
2,666
132
112
77
12
(47)
(2)
(4)
77
12
(47)
(2)
(4)
102,068
68
618
10
(4,102)
0
19
(0)
(4,102)
0
19
(0)
Hedged Item
Contract
Amount
Fair Value
Fair Value
476
24
Receivable
3,025
(14)
Payable
Receivable
190
112
(4)
(2)
4,416
(75)
309
(10)
Payable
Payable
265
25
Millions of yen
December 31, 2013
Hedged Item
Payable
Payable
Contract Amount
Contract Amount
Due after One Year
Fair Value
5,932
873
73
63
Receivable
Receivable
981
2,308
(1)
135
Payable
1,551
(15)
24
$49,606
1,765
25,297
1,252
1,063
$731
114
(446)
(19)
(38)
$731
114
(446)
(19)
(38)
968,479
645
5,864
95
(38,922)
0
180
(0)
(38,922)
0
180
(0)
The fair value of derivative transactions is measured at the quoted price obtained from the financial institutions.
The contract or notional amounts of derivatives, which are shown in the above table, do not represent the amounts exchanged by the parties and
do not measure the Groups exposure to credit or market risk.
80
Contract Amount
Due after One Year
11,924
572
Contract Amount
Hedged Item
Payable
Payable
Contract Amount
Contract Amount
Due after One Year
Fair Value
$56,286
8,284
$693
598
Receivable
Receivable
9,308
21,900
(9)
1,281
Payable
14,717
(142)
228
The fair value of derivative transactions is measured at the quoted price obtained from the financial institutions.
The contract or notional amounts of derivatives that are shown in the above table do not represent the amounts exchanged by the parties and do
not measure the Groups exposure to credit or market risk.
81
The following foreign currency forward contracts were not measured at fair value, but the hedged items (i.e., payable) denominated in a foreign
currency are translated at the contracted rates as described in Note 2 (u). The fair values of such foreign currency forward contracts are included in those
of the hedged items in Note 15 and are not shown in the table below:
Millions of yen
December 31, 2012
Hedged Item
Contract Amount
Contract Amount
Due after One Year
Payables
Payables
57
145
Hedged Item
Payables
Payables
Contract Amount
Contract Amount
Due after One Year
56
142
Fair Value
Payables
Payables
Contract Amount
Contract Amount
Due after One Year
$531
1,347
Fair Value
Hedged Item
Contract Amount
Contract Amount
Due after One Year
2013
2013
266
(18)
248
(78)
170
807
(1)
806
(272)
534
$7,657
(9)
7,648
(2,581)
$5,067
625
(3)
622
(287)
335
(376)
(376)
205
(171)
$(3,568)
(3,568)
1,945
$(1,623)
33,883
33,883
74,500
13
74,513
$706,898
124
$707,022
590
34,978
1,282
76,158
12,164
$722,630
Millions of yen
December 31, 2013
Thousands of
U.S. dollars
Millions of yen
2012
The components of other comprehensive income for the years ended December 31, 2012 and 2013, were as follows:
Fair Value
Millions of yen
Fair Value
29,503
29,503
Long-term debt
23,479
23,479
The following appropriation of retained earnings as of December 31, 2013, will be approved at the Companys shareholders meeting to be held on
March 28, 2014:
Millions of yen
17,922
Thousands of
U.S. dollars
$170,054
Hedged Item
Contract Amount
Contract Amount
Due after One Year
Fair Value
Long-term debt
$279,941
$279,941
Long-term debt
$222,782
$222,782
Hedged Item
Raw sugar
Contract Amount
Contract Amount
Due after One Year
1,014
Fair Value
12
Millions of yen
December 31, 2013
Hedged Item
Contract Amount
Raw sugar
1,075
Contract Amount
Due after One Year
Fair Value
(2)
Under ASBJ Statement No. 17, Accounting Standard for Segment Information Disclosures, and ASBJ Guidance No. 20, Guidance on Accounting
Standard for Segment Information Disclosures, an entity is required to
report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of
operating segments that meet specified criteria. Operating segments are
components of an entity about which separate financial information is
available and such information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, segment information is required to be
reported on the same basis as is used internally for evaluating operating
segment performance and deciding how to allocate resources to operating segments.
Hedged Item
Contract Amount
Raw sugar
$10,200
Contract Amount
Due after One Year
Fair Value
$(19)
The fair value of derivative transactions is measured at the quoted price obtained from the financial institution.
The contract or notional amounts of derivatives, which are shown in the above table, do not represent the amounts exchanged by the parties and
do not measure the Groups exposure to credit or market risk.
82
83
(c) Information about sales, profit, assets, and other items was as follows:
(d) Overseas information about sales and reconciliations from segment profit to EBITDA by geographic area is as follows:
The overseas segments are divided into four areas, each corresponding to where the headquarters of the overseas subsidiaries are located.
Millions of yen
2012
Japan
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Segment assets
Others:
Depreciation and amortization
Amortization of goodwill
Investments in affiliates accounted for by the equity methods
Increase in property, plant and equipment and intangible assets
Overseas
Millions of yen
Total
Reconciliations
Consolidated
688,796
688,796
35,605
291,134
303,364
1,208
304,572
42,507
553,316
992,160
1,208
993,368
78,112
844,450
(1,208)
(1,208)
(19,665)
992,160
992,160
58,447
844,450
27,591
129
31,620
8,979
19,537
7,940
19,911
36,570
19,666
7,940
51,531
36,570
19,666
7,940
51,531
2013
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Segment assets
Others:
Depreciation and amortization
Amortization of goodwill
Investments in affiliates accounted for by the equity methods
Increase in property, plant and equipment and intangible assets
Overseas
Total
716,852
716,852
45,395
308,237
404,510
1,071
405,581
50,532
948,465
1,121,362
1,071
1,122,433
95,927
1,256,702
29,575
111
34,427
14,144
23,100
8,744
218,253
43,719
23,211
8,744
252,680
Reconciliations
Consolidated
(1,071)
(1,071)
(23,211)
1,121,362
1,121,362
72,716
1,256,702
43,719
23,211
8,744
252,680
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Segment assets
Others:
Depreciation and amortization
Amortization of goodwill
Investments in affiliates accounted for by the equity methods
Increase in property, plant and equipment and intangible assets
Overseas
Total
$6,801,898
$6,801,898
$430,733
2,924,727
$3,838,220
10,162
$3,848,382
$479,477
8,999,573
$10,640,118
10,162
$10,650,280
$910,210
11,924,300
280,624
1,053
326,663
134,207
219,186
82,968
2,070,908
414,831
220,239
82,968
2,397,571
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Add: Depreciation and amortization
EBITDA
123,661
1,208
124,869
24,450
3,480
27,930
Reconciliations
$
(10,162)
$(10,162)
$(220,239)
Consolidated
$10,640,118
$10,640,118
$689,971
11,924,300
414,831
220,239
82,968
2,397,571
Oceania
Asia
33,343
33,343
5,077
824
5,901
78,843
78,843
6,230
2,125
8,355
Americas
67,517
67,517
6,750
2,550
9,300
Total
303,364
1,208
304,572
42,507
8,979
51,486
Millions of yen
2013
Europe
Millions of yen
Japan
2012
Europe
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Add: Depreciation and amortization
EBITDA
154,932
1,071
156,003
27,243
4,667
31,910
Oceania
Asia
40,962
40,962
6,217
1,218
7,435
132,658
132,658
9,201
5,306
14,507
Americas
75,958
75,958
7,871
2,953
10,824
Total
404,510
1,071
405,581
50,532
14,144
64,676
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
Add: Depreciation and amortization
EBITDA
$1,470,082
10,162
$1,480,244
$258,498
44,283
$302,781
Oceania
Asia
$388,671
$388,671
$58,990
11,557
$70,547
$1,258,734
$1,258,734
$87,304
50,347
$137,651
Americas
$720,733
$720,733
$74,685
28,020
$102,705
Total
$3,838,220
10,162
$3,848,382
$479,477
134,207
$613,684
Sales
Europe
688,796
124,167
Oceania
Asia
58,138
53,542
Americas
67,517
Total
992,160
Millions of yen
2013
Japan
Reconciliations in the segment profit represents amortization of goodwill that was not allocated to each reportable segment. Segment profit
represents operating income before the amortization of goodwill.
The following table shows reconciliations from segment profit to earnings before interest, taxes, depreciation, and amortization (EBITDA) by
reportable segments for the years ended December 31, 2012 and 2013:
Sales
716,852
Europe
Oceania
Asia
155,681
69,435
103,436
Americas
75,958
Total
1,121,362
Sales
Japan
Europe
Oceania
Asia
Americas
Total
$6,801,898
$1,477,189
$658,839
$981,459
$720,733
$10,640,118
Millions of yen
2012
Japan
Segment profit
Add: Depreciation and amortization
EBITDA
35,605
27,591
63,196
Overseas
Total
42,507
8,979
51,486
78,112
36,570
114,682
Millions of yen
Japan
2013
Japan
Segment profit
Add: Depreciation and amortization
EBITDA
45,395
29,575
74,970
Overseas
Total
50,532
14,144
64,676
95,927
43,719
139,646
Oceania
34,156
13,899
Segment profit
Add: Depreciation and amortization
EBITDA
84
$430,733
280,624
$711,357
Overseas
$479,477
134,207
$613,684
152,769
Europe
Oceania
70,248
19,414
20,301
Total
235,339
Asia
49,202
Americas
21,188
Total
312,821
Total
$910,210
414,831
$1,325,041
Americas
2013
Japan
2013
Japan
Asia
16,659
Millions of yen
150,324
Europe
2013
Japan
Europe
Oceania
Asia
Americas
$1,449,559
$666,553
$184,211
$466,856
$201,044
Total
$2,968,223
85
Overseas
109
Total
84
193
Millions of yen
2013
Japan
Overseas
16
Total
1,160
1,176
Overseas
$152
Total
$11,007
$11,159
Goodwill
Overseas
1,262
Total
348,667
349,929
Millions of yen
2013
Japan
Goodwill
Overseas
1,050
Total
399,000
400,050
Goodwill
$9,963
Overseas
Total
$3,785,938
$3,795,901
Millions of yen
2012
2013
2013
320,754
128,209
$1,216,520
4,010
1,868
17,725
19,254
15,694
The balances due to or from these related parties as of December 31, 2012 and 2013, were as follows:
Millions of yen
Thousands of
U.S. dollars
2012
2013
2013
274,870
22,942
22,942
320,754
99,199
29,010
128,209
$941,256
275,264
$1,216,520
216
13,854
14,070
15,325
15,325
$
145,412
$145,412
56,538
60,862
$577,493
Suntory Business Expert Limited (SBE) is a wholly owned subsidiary of the Parent and no shares are held by the Company. SBE acts as a sharedservice business company among the Suntory Group, and makes payments to the Groups suppliers on behalf of the Group. Such payments are not
transactions between the Group and SBE, and not included in the transaction information above, whereas the balances due to SBE are disclosed.
86
87
Corporate Overview
Stock Overview
Company Name:
Date of Listing:
July 3, 2013
Head Office:
Stock Listing:
Established:
January 2009
Fiscal Year:
January 1 December 31
Capital:
168,384 million
Authorized Shares:
480,000,000 shares
Group Companies:
Issued Shares:
309,000,000 shares
Employees:
Shareholder Registry Administrator: Sumitomo Mitsui Trust Bank, Limited 1-4-1 Marunouchi, Chiyoda-ku, Tokyo
Group Companies
Composition of Shareholders
Major Shareholders
Shareholders
183,800
59.4
9,029
2.9
7,683
2.4
[Oceania]
Frucor Group (New Zealand)
4,514
1.4
4,148
1.3
[Asia]
Suntory Beverage & Food Asia Pte. Ltd. (Singapore)
Cerebos Pacific Limited (Singapore)
PT SUNTORY GARUDA BEVERAGE (Indonesia)
Suntory Narang Private Limited (India)
Suntory PepsiCo Vietnam Beverage Co., Ltd. (Vietnam)
TIPCO F&B CO., LTD (Thailand)
2,808
0.9
2,292
0.7
2,269
0.7
2,022
0.6
1,994
0.6
[Americas]
Pepsi Bottling Ventures LLC (U.S.A.)
0.62%
5.16%
0.00%
12.08%
21.36%
60.75%
60.75%
21.36%
12.08%
5.16%
0.62%
0.00%
88
89