Always Putting the Customers First Our basic management principle is to honor each and every customer. Consumers Stockholders & Investors All entities through which sells its products Suppliers Financial Institutions Natural Healthy Safe Well-designed Delicious 1. Japan's Non-Alcoholic Beverage Market 2. Results of Operations 3. Management 4. Marketing 5. Category and Container Results and Sales Composition (Non-Consolidated) 6. Green Tea Beverages (1) 7. Green Tea Beverages (2) 8. Green Tea Beverages (3) 9. Vegetable and Functional Beverages 1. Overseas Expansion 11. Mid- and Long-Term Planning Reference Announcement of Annual Financial Results for the Year Ended April 3, 25: Explanatory Materials June 25
1. JAPAN'S NON-ALCOHOLIC BEVERAGE MARKET Carbonated Beverage Era Market Trend (Sales Basis) Coffee Beverage Era Tea Beverage Era 8 () 4 Changing Average High and Low Temperatures in Tokyo / Osaka Area Tokyo Average High Temp. Change from Previous Year Average Low Temp. Change from Previous Year (\Bil.) 4, 1,424.8 1,883.9 2,77.5 3,1.2 3,54.3 3,456. 3,436.8 3,352.3 3,535.7 3,54. Market -4 8 May 24 June July Aug. Sept. Oct. Nov. Dec. Jan. Number of Typhoons Strike 25 2 1 3 2 2 (Total: 1) Feb. Mar. Apr. 3, 2, Pioneering of Canned Oolong Tea Pioneering of Canned Green Tea 222. 26.1 97.7 447.4 145.6 922.3 214.7 269.5 266.4 18.1 398.1 146.5 921.3 194.9 126.9 422.6 129.6 937. 257.9 226. 136.5 327.8 122.8 941.3 227.6 225.9 15.5 376.4 134.2 937.2 22. 224. 16. 367. 139. 933. / Functional Sports Drink Mineral Water Fruit Vegetable Coffee () 4-4 May 24 4% (YOY % Change) 3% Osaka June July Aug. Sept. Oct. Nov. Dec. Jan. 25 Monthly Sales Trends (Volume Basis) 29.6% Feb. Mar. Apr. Source:, LTD. 1, 648.9 49.3 446. 217.1 268.5 279.2 39.4 85.2 1981 1985 199 1995 2 21 22 23 24 25 Source:, LTD. Including Estimated Est. Year: Jan.-Dec. 583.4 796.4 814.4 535.5 824. 56.9 833.2 545.3 514. 938.5 947. Carbonated Tea (Including Green Tea) Green Tea 2% 1% % -1% 13.5% 1.7% 7.% 26.% 8.9% 6.8% 3.1% 7.%.% 13.9% 6.% 1.8% 7.4% 4.% 1.% May June July Aug. Sept. Oct. Nov. Dec. Jan. 24 25-3.% -4.% Market 11.7% 9.7% 1.% 3.% 9.8% Feb. Mar. Apr. -1.%
Consolidated Non-Consolidated Net Sales Gross Profit Sales Commission Advertising Exp. Transportation Cost Depr. and Amort. Operating Income Ordinary Income Extraordinary Expenses and Income Net Income Capital Expenditure E P S Net Sales Gross Profit Operating Income Ordinary Income Extraordinary Expenses and Income Net Income Cash Dividends per Share E P S For the Year Ended Apr. 3, 24 Millions 2. RESULTS OF OPERATIONS Yearly Totals For the Year Ended Apr. 3, 25 Millions YOY % Change Conditions of Subsidiaries For the Year Ended Apr. 3, 25 Net Sales ( Mil.) Operating Income ( Mil.) Yearly Totals For the Year Ending Apr. 3, 26 (Est.) YOY % Change Millions 239,235 263,764 1.3% 1,36-556 283, 7.3% 12,384 133,426 1.8% Domestic Subsidiaries 17,55 91 142,756 7.% 28,76 32,684 13.6% Other Subsidiaries 2,628-12 34,468 5.5% 8,965 9,795 9.3% Elimination of Internal Transactions -17,765-33 1,26 4.2% 8,967 9,738 8.6% Breakdown of Gross Profit (Non-Consolidated) 1,569 8.5% 739 76-4.4% 4/25 4/26 846 19.7% 17,55 19,71 12.6% Bil. Bil. 2,7 5.% 16,69 19,216 15.7% Increasing Sales 12.2 9.1 2,2 5.1% -143-253 Fluctuations in Prices.6.7-53 Changing Products 8,731 1,451 19.7% -.4 -.8 11,1 6.2% Composition, etc. 481 2,773 Materials and Ingredients Price Reduction.1. 2,339 193.48 233.15 Fluctuations in the Exchange Rate.3. 248.31 235,629 26,9 1.4% Breakdown of Extraordinary Expenses 278,3 7.% and Income (4/25 Totals) 117,782 13,595 1.9% 139,612 6.9% Non-Consolidated Consolidated 17,678 19,59 1.4% ( Mil.) 2,6 ( Mil.) Allowance for Loss on 5.6% Devaluation of Securities -3,31-16,858 19,145 13.6% Loss on Sales or Disposal of 2,2 5.5% -81-93 -448-451 Fixed Assets -79-2,996-5 Expense for New Bank Bill Loss on Devaluation of Fixed 9,451 9,253-2.1% 11,5 24.3% Assets in a Foreign Subsidiary - -274 Reversal of Retirement and Severance Benefits 5 7 for Directors and Corporate Statutory Auditors 624 626 7 29.43 26.43-6 -6 257.26
3. MANAGEMENT Management Policies Product Marketing Strategies Established ''Oi Ocha Koi Aji'' Brand Renewed ''Oi Ocha Ryoku-Cha'' ''Oi Ocha'' Confirmed as No.1 Brand Strengthen "Ichinichibun no Yasai", "Jujitsu Yasai" Brand 15, (\ Mil. ) 1, 5, 8,76 6,371 Trends in Cash Flow, Capital Expenditure, Depr. and Amort. (Consolidated) Sales Cash Flow Investment Cash Flow Free Cash Flow 1,987 9,467 12,49 11,584 13,23 1,116 14,15 1,992 Strengthen the Foundation for Sales Implemented Total Marketing System Strengthen R & D Total Cost Reduction -5, Capital Expenditures Depr. and Amort. 4/22 4/23 4/24 4/25 4/26 Est. -1,75-1,52-95 1,18 686 481 1,295 1,261 1,25-3,113 2,773 1,385-3,158 2,339 1,341 Materials and Ingredients Price Reduction Expense Reduction Loss on Disposal of Inventories Reduction Trends in Dividend per Share and Dividend Payout Ratio (Consolidated) Strengthen Overseas Expansion Opened the First Crude Tea Processing Plant in Australia Expanded the Business of (North America) INC. and Improvement of Financial Conditions Improvement to Stockholders Dividend Increase <Yearly Dividend 5 7> Implemented Continuous Buybacks 936,9 Sep. 22 - Apr. 25 8 \ 6 4 2 Dividend Payout Ratio 22.8% 27.% 24.3% 4 4 43 25.8% 5 Dividend per Share 3.% 4/21 4/22 4/23 4/24 4/25 7 4% 3% 2% 1% %
4. MARKETING Implementing a Total Marketing System Sales Channel Composition of and the Market (Non-Consolidated) % 5% 1% Aggressive Product Policies Market 24 27% 23% 38% 12% 4/24 25.7% 25.1% 2.7% 19.9% 7.2% 1.4% Strengthen Efforts to Develop New Customers 4/25 4/26 Est. 26.9% 26.9% 24.8% 25.2% 2.6% 2.8% 19.1% 7.2% 1.4% 18.8% 7.% 1.3% Raise the Efficiency of Sales Activities Introduced New Handy Terminal System Strengthen Area Marketing Thorough Cost Performance Trends in the Number of Market's Vending Machines and 's Vending Machine Share Source:, LTD. Sales Branches Sales YOY % Change Sales Composition Total 1.5% Supermarkets Vending Machines New Materials / Raw Material Wholesales Tohoku/ Hokkaido Kanto 192 27 92 Kansai Convenience Stores Directly Managed Specialty Stores Number of Sales Branches, Sales YOY % Change and Sales Composition by Region (4/25) Chubu 25 18 Chugoku/ Shikoku Kyushu 15 15 8.7% 1.4% 8.7% 14.4% 1.3% 13.5% 1.% 11.6% 54.2% 13.% 9.3% 5.5% 6.4% Trends in Number of Customers and Vending Machines Establishments 3,, (# of Vending Machines 2,, 's Vending Machine Share 3.3% 3.7% 4.3% Number of Market's Vending Machines 4.8% 5.% 8.% 4.% 3, (# of Customers and Vending Machines) 2, 144,372 Number of Customers 165,242 18,93 Number of Vending Machines 21, 188,987 27, 1,, 1, 78,917 91,954 14,53 111,516 122, 155, 2 21 22 23 24 Source:, LTD..% 4/22 4/23 4/24 4/25 4/26 Est. 4/27 Est.
Drinks Breakdown Containers 5. CATEGORY AND CONTAINER RESULTS AND SALES COMPOSITION (NON-CONSOLIDATED) Net Sales Tea Leaves Drinks Japanese Tea Chinese Tea Vegetable Fruit Coffee Black Tea Functional Total Volume (Thousands of cases) Cans (Thousands of cases) Total PET Bottles 235,629 26,9 1.4% 278,3 7.% 28,72 28,144.3% 28,69 1.9% 25,81 229,392 11.9% 246,54 7.5% 2,475 2,553 3.2% 3,68 2.2% 117,483 134,1 14.1% 146,95 9.6% 14,534 14,49 -.3% 14,495.% 23,763 3,139 26.8% 32,469 7.7% 11,889 11,653-2.% 11,87 1.9% 16,895 17,421 3.1% 18,788 7.8% 6,5 6,711 3.2% 6,897 2.8% 7,635 7,713 1.% 7,91 2.4% 6,378 7,162 12.3% 7,166.1% 114,128 127,322 11.6% 136,411 7.1% 2,248 19,488-3.8% 2,2 2.7% 88,713 11,475 14.4% 19,231 7.6% (Thousands of cases) 2Liter PET Bottles 23,274 25,46 9.4% 26,62 4.6% 5ml PET Bottles 3,739 37,48 21.7% 41,323 1.5% 35ml and smaller PET Bottles 23,237 25,294 8.9% 27,269 7.8% Other PET Bottles 11,461 13,312 16.2% 14,16 5.3% (Thousands of cases) For the Year Ended Apr. 3, 24 Millions Millions Yearly Totals For the Year Ended Apr. 3, 25 YOY % Change For the Year Ending Apr. 3, 26 (Est.) Millions YOY % Change 5,167 6,357 23.% 7,159 12.6% Cans 1% 8% 6% 4% 2% % Small-sized PET Bottle Black Tea Beverage 2.6% Market Coffee Beverage 6.7% Fruit Beverage 4.5% Vegetable Beverage 11.6% 11% 25% 24% 4% Chinese Tea Beverage 5.6% 24 Larger-sized PET Bottle 1% Sales Breakdown (For the Year Ended April 3, 25) Functional Beverage 3.% 8% 6% 4% 2% % 4.5% 4.4% 4.5% 11.4% 1.2% 1.1% 14.1% 19.2% 2.4% 23.2% 19.7% 27.1% Other Beverage 2.7% 26. Bil. Sales Composition by Container (Volume Basis) 25.2% 26.9% 2.6% 2.4% 2.4% 17.7% 1.% Tea Leaves 1.8% Japanese Tea Beverage 51.5% ("Oi Ocha" 45.1%) 5.% 5.2% 1.4% 1.3% 19.9% 2.% 29.4% 3.3% 2.% 19.5% 15.3% 14.7% 4/22 4/23 4/24 4/25 4/26 Est. Cans 2 Liter PET Bottles 5ml PET Bottles 35ml and Smaller PET Bottles Other PET Bottles Source:, LTD.
6. GREEN TEA BEVERAGES (1) - "Oi Ocha", Continuing to Move Forward - 8 (\ Bil.) 7 6 5 4 3 2 1 Annual per Capita Tea Consumption Trends in Green Tea Market and Annual per Capita Tea Consumption Source: The Ministry of Agriculture, Forestry and Fisheries, Ministry of Finance,, LTD. etc. Green Tea Beverage Market Tea Leaves Market 1976 1978 198 1982 1984 1986 1988 199 1992 1994 1996 1998 2 22 24 "Oi Ocha" History 1, (g) 9 8 7 6 5 6 (\Bil.) 5 4 3 2 1 Oolong Tea Beverage Era 4.7 1.2 Tea Beverage Market Trend Black Tea Beverage Era 85.2 Blended Tea Beverage Era 217.1 268.5 Green Tea Beverage Era 279.2 39.4 446. 49.3 176. 162. 136. 27. 1981 1985 199 1995 2 21 22 23 24 25 Major Brand Ranking Trends (Volume Basis) Source:, LTD. Year: Jan.-Dec. Est. Green Tea Black Tea Oolong tea Blended Tea Barley Tea 1985 1989 199 1996 2 21 22 24 25 Received Patent for 'the Natural Clear Production Method' (Rank) 1 2 3 4 5 6 1995 2 24 3 Georgia Coca-Cola Oi Ocha AQUARIUS BOSS Soukenbi-Cha Pioneered of Canned Green Tea Retitled to "Oi Ocha" Pioneered of Green Tea in PET Bottle Launched 5ml Type PET Bottle Launched Heatable Type PET Bottle Launched "Shin-Cha" Switched to Transparent Type PET Bottle Launched "Koi Aji" "Oi Ocha" Refinement 7 8 9 1 11 12 19 19 8 SUNTORY Oolong-Cha POCARI SWEAT DyDo Coffee Nama-Cha Source:, LTD. Year: Market Jan.-Dec. May-Apr.
7. GREEN TEA BEVERAGES (2) 5 (\ Bil.) 4 3 Source:, LTD. Year: Jan.-Dec. Green Tea Beverage Market Green Tea Ready-to-Drink Ratio and Green Tea Beverage Market Ready-to-Drink Beverage Ratio 268.5 279.2 39.4 49.3 17.9% 446. 19.5% 25% 2% 15% Product Policies Refinement PET5ml the 2th Anniversary since the Launch of 's Green Tea Beverage New Style Container PET T-2 Liter (Handy Bottle Type) 2 1 ITO EN Share 85.2 3.7% 25.9 1.7 29.1 113.3 38.6 146.1 4.4% 4.7% 5.7% 5.5 For the Year Ended Apr. 3, 24 161.9 6.6% 58.8 217.1 9.6% 66.3 For the Year Ended Apr. 3, 25 12.5% 13.2% 75.8 YOY % Change 87.5 14.8% 11.8 119.3 For the Year Ending Apr. 3, 26 (Est.) YOY % Change 134.5 1995 1996 1997 1998 1999 2 21 22 23 24 25 Est. 3.4% 28.9% 34.1% 34.6% 36.3% 3.5% 28.2% 31.3% 32.9% 29.2% Oi Ocha 's Actual and Forecast Sales (Non-Consolidated) 3.2% 1% 5% % Launch DateMay 16 Launch DateJune 13 Equating Attractive Aroma with a Delicious Natural Taste Actualization Natural Extraction / Fresh Production Method Tea Leaves that Yield a Stronger Aroma and the Natural Extraction Method New Natural Clear Production Method Sales Policies Tea Natural Production Method Dissipated Consumer's Complaints against Existing 2 Liter PET Bottle Container First to Develop the Handy Bottle Container Original Container Handle is Made from Recycled PET Bottles (Approved PET Bottle Recycle Products) Increasing Exposure Time through Powerful Advertising Sales Basis ( Bil.) 12.5 117.2 14.4% 129.1 1.1% (TV Commercials, Traffic Advertisements, Magazines, Internet, etc.) Energizing Points of Sale through Effective Sales Promotions Volume Basis (Thou. of Cases) 58,868 66,86 13.6% 73,11 9.2% (Character Campaigns, Display Competitions, etc.)
8. GREEN TEA BEVERAGES (3) Procurement Activity History of Agricultural Land Law Domestic Tea Leaf Production Imports Exports 23 Tons 91,93 1,242 751 Domestic Consumption 11,4 Utilization 17,647 Tons 75 24 1,7 16,995 16, 18,691 YOY % Change 9.5% 65.9% -.1% 4.5% 5.9% 25 (Est.) Tons 14, -17.6% 9 2.% 17,4 1.3% YOY % Change 95, -5.7% Source: The Ministry of Agriculture, Forestry and Fisheries, Japan Tea Industry Central Committee,, LTD. Year: Utilization; May-Apr. ; Jan.-Dec. 1952 21 23 23 Enacted Agricultural Land Law Revised Agricultural Land Law Enacted the Law of Special Zones for Structural Reform Approved General Companies to Start Farming due to Special Cases of Agricultural Land Law for the Area Where Spreading Idle Lands Revised Law for the Improvement of the Basis of Farm Management Easing the Restrictions of Investment from Joint-Stock Companies to Agricultural Production Corporations Which Approved of the Management Improvement Plan Source: The Ministry of Agriculture, Forestry and Fisheries Developing Large-Scale Tea Plantation Present Trial Kagoshima, Japan 3, (Thou. of Farmhouses) 2, 1, Conditions of the Number of Farmhouses 2,47 About 6 thousand farmhouses decrease every year. 2,16 1999 24 Promote Succesors Farms Utilization 47% No Succesor Purpose 21-214 To Secure a Stable Supply of Green Tea Leaves to Keep up with the Growing Demand for RTD Green Tea Beverages Miyazaki, Japan Business Contracts Technological Provisions Secure Half of Necessary Raw Materials for Green Tea Beverages Strengthening the Tea Industry and Promoting the Well-Being of Future Farmer Generations Australia Tea Farm Business Entities * Crude Tea Processing Plants Develop More Advanced Systems * JA, Agricultural Production Corporations, Local Companies, Private Farmhouses, etc.
9. VEGETABLE AND FUNCTIONAL BEVERAGES (YOY % Change) 6% 52.2% 4/25 45.% 44.7% 36.4% 42.1% 37.4% 4/24 29.% 3% 18.4% 18.7% 15.6% 14.8% 9.5% 11.7% 6.9% 6.% 7.2% 6.1% 2.8% -3.7% -.3% 5.% % -4.4% -6.8% -1.8% 5 6 7 8 9 1 11 12 1 2 3 4-7.9% -4.5% -13.1% -17.6% -21.% -17.9% -15.7% -15.5% -15.9% -14.8% -3% -24.% -24.9% 4/23 6% 4% 2% % Vegetable Beverage Consumption for Health Purposes by Age Group 1's 2's 3's 4's 5's Source:, LTD. Note: Survey of 3,89 People in Japan Vegetable Beverage Monthly Sales (Sales Basis) Male Female 1% 5% This Term Policies -"Jujitsu Yasai" "Ichinichibun no Yasai"- Implementing 'Breakfast Campaign' from June, 25 % Health Consiousness of Vegetable Beverage Consumers Unconfident Group (Unconfident of Health) 33.3% 25.8% 46.% 52.% 65.1% 66.9% 2.% 1.6% 7.3% Heavy Users Light Users Non Users Source:, LTD. Note: Survey of 3 People ranging from Students to Age 59 ' 35g of Vegetable Daily Intake is Suggested by the Ministry of Health, Labour and Welfare ' Average Group (Normal Health) Confident Group (Confident of Health ) Improve Dietary Habits Control Medical Expenses Biotechnology Industry Market in 21 (Est.) Medicines / Medical Equipment, etc. Health Conscious Food Other Food Industries Bioprocess Biomass Bioremediation Biotool Bioinfomatics Total 8.4 Tril. 3.2 Tril. 3.1 Tril. 3.6 Tril..2 Tril..4 Tril. 3.1 Tril. 2.2 Tril..8 Tril. 25. Tril. Source: Cabinet Office 'Biotechnology Strategic Guideline' Key Tea Ingredient Category 6 (\Bil.) 4 2 226.9 's Functional Beverage Lineup Food for Specified Health Uses Favorable Expansion of Health Foods Market Estimated for the Future Food for Specified Health Uses Market Trend 566.9 Source:, LTD. 276.9 412.1 48. 1999 2 21 22 23 Over-the-Counter Sales - Original Recipe with "Jujitsu Yasai" "Ichinichibun no Yasai" Live TV Commercial Website Expand New Packaging Lineup Launched Canned "Ichinichibun no Yasai" 19g Strengthening the Introduction of Vending Machines and Mail Order Business
1. OVERSEAS EXPANSION Market Positioning of Green Tea Beverage Brand in U.S.A. High Perceived Quality High Quality High Price - Strategies - R&D on Green Tea Health Benefits Sales of "TEAS' TEA" 8, ($ Mil.) Non-Alcoholic Beverage Market in U.S.A. 3, ($ Mil.) Low Price Product C Middle Quality Middle Price Product B Diffusion Brand Low Quality Low Price Source: Survey Results of U.S. Students Product A Low Perceived Quality High Price - Backgrounds of Expanding Demands on Green Tea Drinks - Increasing Fatness People (One Person out of Three) Aging Problem - Green Tea's Image - Japanese Culture: Nature Healthy Longer Life 6, 4, 2, Tea Beverage Market (ight axis) Non-Alcoholic Beverage Market (eft axis) 21 22 23 24 Est. Source: Euromonitor Consumer USA 25 25 Est. 2,75 2,5 2,25 2, Tazo Tea Honest Tea Arizona Tea Snapple YOY % TEAS' TEA 1732.9% Total Brand Ranking among Tea Beverages in Natural Supermarkets Sept. 23-Sept. 24 15.1% 29.1% Tazo Tea 16.7% 27.8% 1.2% 8.3% -12.2% 21.7% Market Share 26.5% 9.3% 7.1% 7.% 1.% Honest Tea TEAS' TEA Arizona Tea Snapple Total Mar. 24-Mar. 25 YOY % 16.7% 381.9% 8.7% Market Share 25.9% 9.9% 8.5% -12.6% 5.7% 27.6% 1.% Note: The above is based on the data from 898 natural supermarkets. < Sales [Sept. 23 - Sept. 24 = 14,588 ($ Thou.)], [Mar. 24 - Mar. 25 = 16,66 ($ Thou.)] > Source: SPINS This Term Policies Product Development in Line with Consumer Needs - Introduction of 2 Liter PET Bottle - Development of Sweetened Tea - Launching "Sencha Shot" Strengthening of Sales - Expanding all entities through which sells its products - Increasing the Number of Customers Strengthening of Website Business Strengthening of Restaurant Business - Expanding Catering Business 2, ($ Thou.) 15, 1, 5, (North America) INC. Sales Progress 483 April 3, 27 Achieve Profit 2,588 3,882 12,223 17,628 4/22 4/23 4/24 4/25 4/26 Est.
11. MID- AND LONG-TERM PLANNING - : Always Looking to Pioneer and Spread New Dietary Cultures throughout the world - For the Year Ending Apr. 3, 27 For the Year Ending Apr. 3, 212 Net Sales (Consolidated) ROE ROA EPS 3 Bil. + 17% 9% 25 + Net Sales 5 Bil. + (Consolidated) Strengthening Core Brands Strengthening the Sales Foundation Total Cost Reduction Overseas Business Development 5 (\ Bil.) Net Sales Trends (Consolidated) 4 Net Sales (Non-Consolidated) = 2 Billion Carried out Net Sales (Non-Consolidated) = 26 Billion Carried out 5. 3 2 24.7 214.8 239.2 263.7 283. 3. 1 4/22 4/23 4/24 4/25 4/26 Est. 4/27 Plan ROE 13.5% 14.7% 14.7% 15.9% 15.2% 17.% ROA 7.3% 8.4% 8.7% 9.9% 9.8% 9.% EPS 148.8 176.43 193.48 233.15 248.31 25 + 4/212 Plan
REFERENCE 1. Group Corporate Data 2. Main Management Indexes (Consolidated) 3. Market (1) 4. Market (2) 5. Market (3) 6. Contexts of the Market Expanding 7. New Handy Terminal System 8. Environmental Activities 9. Systems (1) 1. Systems (2)
REFERENCE - 1. Group Corporate Data Group Corporate Data Stock Price Chart (\ Bil.) 3 Name, LTD (\Mil.) 21, ( ) 25 2 Paid-in Capital 12,655 Million Number of Subsidiaries 7 ( Domestic: 3, Overseas: 4) Number of Shares Issued and Outstanding 44,72,449 Number of Employees 4,785 Number of Sales Offices 195 (Domestic: 193, Overseas: 2) Number of Manufacturing Plants 8 (Domestic: 4, Overseas: 4) Institute The Central Research Institute 18, 15, (Thou. of Shares) - As of Apr. 3, 25-12, 15 1 Net Sales (left axis) Operating Income (right axis) 9, 6, 25 (\) 2 15 EPS (left axis) Dividend Yield (right axis) Trends in 's EPS and Dividend Yield (Consolidated).9% 1.2% 1.1% 1.4% 233.15 1.5% 1.2%.9% 5 May 1992 Initial Public Offering Sep. 1996 Stock listed on the 2nd Section of TSE Oct. 1998 Stock advanced to the 1st Section of TSE 3, 1 5.5% 175.79 148.8 176.43 193.48.6%.3% 4/'91 4/'92 4/'93 4/'94 4/'95 4/'96 4/'97 4/'98 4/'99 4/' 4/'1 4/'2 4/'3 4/'4 4/'5 4/'6 Est. 4/21 4/22 4/23 4/24 4/25.%
REFERENCE - 2. Main Management Indexes (Consolidated) (%) 15 Net Sale YOY % Change (%) 2 18.2 ROE (%) 15 ROA 12 9 6 3-3 1.8 11.4 1.3 6.2 4.4 4.9 4.8 1.9. -.1 2 21 22 23 24 Market Average (FY) 16 12 8 4-4 14.7 14.7 15.9 13.5 2.8 2.8 3.9 1.1-1.6 2 21 22 23 24 (FY) Market Average 12 9 6 3-3 9.9 9.2 8.4 8.7 7.3 2. 1.4 1.8 1.1 -.6 2 21 22 23 24 Market Average (FY) (\) 24 EPS 233.15 (%) 1 Operating Profit Ratio (times) 5 Total Asset Turnover 18 175.79 148.8 176.43 193.48 8 8.1 7.4 7.3 7.3 7.5 4 12 6 38.69 38.2 35.98 47.24 6 4 4.4 3.1 3. 3.1 4. 3 2 2.2 2.2 2.3 2.4 2.5 1.5 1.5 1.6 1.6 1.7-1.64 2 2 21 22 23 24 (FY) Market Average -6 Market Average 2 21 22 23 24 Source:, LTD. Note: The market average rate is the mean average of figures for 11 major beverage companies. (FY) 1 Market Average 2 21 22 23 24 (FY)
REFERENCE - 3. Market (1) 5 (\Bil.) 324.1 25 Non-Alcoholic Beverage Market Sales by Category 24 1995 435.4 3,6 (\Bil.) 3,4 Market Size Non-Alcoholic Beverage Market Size and Green Tea Beverage Share (1995-25) Green Tea Beverage Share 7.8% 8.1% 9.2% 12.7% 11.6% 15% 1% Green Tea Coffee Mineral Water Blended Tea / Vegetable Sports Functional Drink Black Tea Barley Tea Fruit Oolong Carbonated Tea Total 3,2 2.7% 3.2% 3.5% 4.3% 4.6% 6.1% 5% -25 2.7% (Rank 11) Source:, LTD. Market Share 1995 24 (Est.) Company A Source:, LTD. Company A 3, 25 (\ Bil.) 2 15 Est. 1995 1996 1997 1998 1999 2 21 22 23 24 25 Source:, LTD. Operating Income of Beverage Companies (24) Source: Each Company's Financial Results (Consolidated) 19.7 % (Rank 6-1) Company E Company D Company C Company B Company C Company E 6.5% (Rank 4) Company D Company B 1 5 Kirin Beverage Coca- Cola West Asahi Kinki Coca- Cola Kagome DyDo Coca- Cola Central Mikuni Coca- Cola Calpis Pokka Hokkaido Coca- Cola
REFERENCE - 4. Market (2) Green Tea Ready-to-Drink Beverage Ratio 21 12.5% 22 23 24 (Including Estimated) 13.2% 14.8% 17.9% Source:, LTD. 25 (Est.) 19.5% Annual Consumption per Capita (Liters) 1 75 1L Annual Per Capita Consumption and Market Size Source:, LTD. and The Ministry of Agriculture, Forestry and Fisheries Year: Jan. - Dec. 24 (Est.) Cans, PET Bottles, etc. Tea Leaves, Beans, etc. 72L 1,436. Bil. Market Size ( Bil.) 2, 1,5 Oolong Tea 55.2% 56.8% 57.2% 54.2% 5 734. Bil. 1, Black Tea 34.1% 31.4% 32.4% 32.1% Coffee 3.3% 29.4% 3.2% 29.4% 25 19L 18L 224. Bil. 28. Bil. 49.3 175. 175.3 Green Tea Black Tea Oolong Tea 937.2 Coffee 5 24 Figure Coffee Bev. Market 937.2 Billion Oolong Tea Bev. Market 175.3 Billion Black Tea Bev. Market 175. Billion (\ Bil.) 1, 9 8 7 6 5 4 3 2 1 (Green Tea Ready-to-Drink Ratio) 268.5 279.2 Green Tea Ready-to-Drink Ratio and Green Tea Beverage Market 39.4 49.3 446. 75.8 87.5 11.8 119.3 134.5 98. 34. 12.5% 13.2% 14.8% 17.9% 19.5% 3% 24 Green Tea Beverage Market At Ready-to-Drink Ratio 3%, assumes 31% share of the Green Tea Beverage Market. Source:, LTD. Year: Jan. - Dec.
REFERENCES - 5. Market (3) Other Companies' Green Tea Market Introduction Date by Major Companies Coca-Cola 1985 Canned Green Tea "Oi Ocha" Kirin Beverage 1988 Georgia / Ocha Sen-Cha Source:, LTD. Suntory Asahi JT Kao (\Mil.) 2, 1,5 1,384 1,348 R&D Expenses 1,553 1,864 1,93 1989 Sen-Cha Green Tea in PET Bottles 1991 Kafuku Sen-Cha 199 Nihon-Cha 1992 1993 1994 Seiryu Sabo Ryoku-Cha Kyoban-Cha Mei-Cha Sansen Ryoku-Cha Sen-Cha Issen Ryoku-Cha 1996 1997 Patent Obtainment for Revolutionary Method of Manufacturing Green Tea in PET Bottling Shinba Sen-Cha Saryu Saisai Sen-Cha Seiryu Sabo Sen-Cha Ichiban-Cha Shiyou Sen-Cha Ryoku- Cha(Maru-Cha) Hatsuzumi-Cha Ocha Douzo Ryoku-Cha Hatsuzumi-Cha Ocha Douzo Mei- Cha Sansen Ocha Douzo Ajiwai Ryoku-Cha Ajiwai Ryoku- Cha Dentou Kamairi Cha Total: 262 Research Results 1998 Nagomi Ryoku- Naturals Cha As of April 3, 25 2 Green Tea in Nagomi Sasa Nama-Cha Shimijimi Shin-Cha Fumi GREEN'S Contents Number of Patents Heatable PET Ryoku-Cha Ryoku-Cha Ryoku-Cha (Including pending ones) Bottle 21 Seasonally Limited Maro-Cha Uma-Cha R&D on Green Tea Products (Tea Leaves and Green Tea Drinks) 49 22 Ryokusui Ubu-Cha R&D on Pharmacological Benefits and Effects of Tea Ingredients (Prevention of Cancer, Anti-Alzheimer's Disease) 94 23 Regionally Limited Maro-Cha 12 Kuchidoke Nama-Cha Wa-Cha Oishii Uma- Shibu-Cha Healthya Nihon Densho Kama R&D on Other Applications of Tea Products no Cha Cha Ryoku-Cha (Mouth Wash Liquid, Antibacterial Materials,etc.) 19 24 "Oi Ocha Koi Maro-Cha Nekase Nama- Iemon Nigorase Uma- R&D on Other Drinks Cha, Morokoshi Aji" Chaba no Kou Cha (Barely Tea, Oolong Tea and Vegetable/Fruit Juice) Nama-Cha, etc. 51 the 2th Anniversary 25 Hajime Renewed Wakamusha of Green Tea Beverage Nama-Cha "Oi Ocha" Renewal 49 1, 5 4/22 4/23 4/24 4/25 4/26 Est.
REFERENCE - 6. Contexts of the Market Expanding Trend Towards Health Japanese Food Improves the Nation's Health (Thou. of Persons) 15, 1, 5, - Gross Population and Number of Persons Over Age 65 in Japan - The population of Japan will be almost the same in 1 years. Number of Persons Over Age 65 (right axis) (Thou. of Persons) 6, 4, 2, (Age) - Average Life Span of the World (22) - 1 8 6 4 81.9 Gross Population (left axis) 2 (Thou. of Households) 6, 4, 2, '2 '3 '4 '55 '65 '75 '85 '95 '97 '99 '1 '3 '5 '7 '9 Source: Estimated Japanese Population in the Future Trend Towards Convenience - Number of Households and Average Number of Persons per Household in Japan - The number of households will grow by 2 million in 1 years. Average Number of Persons per Household (right axis) Number of Households (left axis) '2 '3 '4 '55 '65 '75 '85 '95 '97 '99 '1 '3 '5 '7 '9 Source: Estimated Number of Japanese Households in the Future,, LTD. (Persons) 6 4 2 Angola 4 (Liters) 3 2 1 South Africa 34.7 142.7 India Russia 355.3 156.4 Egypt Brazil Saudi Arabia 356.3 159. China Mexico Total Value-Added Beverages 3 2 Korea U.S.A. U.K. Germany Italy France Japan Source: Ministry of Internal Affairs and Communications Annual Consumption of Value-Added Beverages per Capita Japan '9 '98 '3 Est. 5 (Liters) 4 483.1 U.S.A. 479.2 1 26.1 26.1 '98 '3 Est. Total Tea Beverages
REFERENCE - 7. New Handy Terminal System Salesperson Practical Marketing Support Customers New Handy Terminal System - New Portable Terminal Can Hold New Product Pictures and TV Comercial Movies - Customer Sales Analysis * ( Reference) Support for Sales Proposals Vending Machines - Tracking of Sales and Stockouts - Simultaneous Data Generation for Two Vending Machines or More in the Same Building Recommendation of the Most Ideal Product Mix for Vending Machines Sales Branches - E-Mail Sending and Receiving Easy, in-advance Transmission of Sales to Branches - Bar Code Scanner Implementation * Loading Time Reduction Introduction Cost 8 Mil. Effectiveness of New Handy Terminal System Introduction - Increasing the Rate of Product Turnover - Reduction of Working Hours - Increasing the Rate of Inventory Turnover
REFERENCE - 8. Environmental Activities Rate of Tea Dreg Recycling (23) Construction Materials.6% Feeding 4.4% Burn up 6.2% Land Reclamation 1.9% Business 3, tons Fertilizing 86.9% Coverting Used Dregs into Compost Tea Mix Board Converting Used Dregs into Products Tea Leaf / Tea Beverage Products Other Beverages Tea Leaf Contracted Growers Tea Leaf Ordinary Growers Crude Tea Processing Plants Processing Plants in Each District Raw Material Supplying Sources (Suppliers) Tea Markets / District Wholesalers Processing Commission Plants Finising Plants Raw Material Receiving / Check Beverage Processing Plants in Commission (Suppliers) Sales (All entities through which sells its products / Salesperson) Distribution Consumers Container Collecting (Salespersons / Administrative Officials) Container Recycling Container Recycling Rates Aluminum Cans 81.8% Steel Cans 87.5% PET Bottles 61.% Paper Cartons 31.1% Year: 23 (Paper Cartons: 22) PET Bottle Recycling Sales Uniforms Made from Recycled PET Bottles
REFERENCE - 9. Systems (1) Consumers Define Value Only products which have the backing of public opinion can survive. Always Searching for Consumers' Dissatisfaction Consumers Sales Route Sales System Corporate-Wide Proposal System by Employees & Customers "VOICE" System 6,743 (# of Suggestions: As of Apr. 3, 25) Management Regional Block Production and Distribution System Ingredients (Tea Leaves, Coffee Beans) - Own Manufacturing System for Realization of High Quality Beverages - Fabricationless Production for Reduction of Investing in Equipment and Transportation Cost R & D 262 (# of Patents <Including pending ones> : As of Apr. 3, 25) Production
REFERENCE - 1. Systems (2) Management System by Each Department Company-wide Plan Company-wide Target Promulgation Modification Degree of Achievement Performancebased Evaluation Establishment of Targets Sales Branch, Sales Department 78 Crown Goals Head Office, Production Headquarter, The Central Research Institute Sales Offices Monthly Settlement of Accounts Each Individual Sales Branch, Profit / Loss Analysis Meeting Company-wide Announcement by Each Individual Dept. Performance-based Reward Systems System for Nominating Superior Sales Branch High - R&D - High Raw Material Procurement Levels The Smile Curve Route Sales System 4 (# of Companies) 3 Employee's Average Age of Food Companies in 24 (Among Stock Market Listed Companies) Source:, LTD. 32 24 Average 39.4 Self- Company Ratio Low Fabricationless Production to Reduce Capital Expenditures and Transportation Cost Upstream Midstream Downstream 2 1 1 1 1 7 5 6 7 2 19 14 11 1 4 2 1 1 3 31 32 33 34 35 36 37 38 39 4 41 42 43 44 45 46 47 48 (Age)
Advisory Note about the Materials