Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — FY2021 Earnings Presentation
49 slides from Nissin Foods's earnings presentation, May 13, 2022
Slide 1: Financial Results for FY 3/2022
Financial Results for FY 3/2022 Announced on May 13, 2022 NISSIN FOODS HOLDINGS CO., LTD. (TSE Stock Code: 2897) *Added page 33~37 and revised page 38 and 39 to pare with the press release on May 16th regarding launch of KANZEN MEAL brands from May 30th. Financial Results Presentation: May 16, 2022
Slide 2: Agenda: Financial Results and Growth Strategy
I. FY 3/2022 Financial Results and FY 3/2023 Forecasts …………… P3~16 Takashi Yano, Executive Officer and CFO II. Progress of Mid- to Long-Term Growth Strategy …………… P18~39 Koki Ando, Representative Director, President and CEO Noritaka Ando, Executive Vice President & Representative Director, COO, and
Slide 3: FY 3/2022 Financial Results
FY 3/2022 Financial Results 2
Slide 4: FY 3/2022 Financial Results Highlights
FY 3/2022 Financial Results Highlights Institutional accounting Constant currency FY 3/2022 Forecasts*1 basis basis*1 YoY YoY*2 YoY*2 Revenue 569.7 Bil. yen +12.6% 557.9 Bil. yen + 13.9% 540.0 Bil. yen + 10.3% Core Operating Profit of Existing Businesses 49.6 Bil. yen (5.4%) 48.7 Bil. yen + 16.3% 47
Slide 5: Consolidated Financial Summary
Consolidated Financial Summary Executed strategies in a steady manner, and combined with the impact of making KOIKE-YA a consolidated subsidiary, resulted in record sales. Profits decreased due to soaring prices of raw materials and a negative rebound from the impact of COVID-19 in FY 3/2021. Howeve
Slide 6: Financial Summary by Segment
Financial Summary by Segment Revenue continued to grow at a high rate, and all three businesses achieved significant increases in revenue. Core operating profit of existing businesses declined due to the impact of rising costs in major areas, including raw materials Revenue ： 569.7 Bil. yen YoY ： +6
Slide 7: Revenue Results by Segment
Revenue Results by Segment Nearly all segments met revenue growth and earnings forecasts, driven by the domestic Non-Instant Noodles Business (with the added impact of making KOIKE-YA a consolidated subsidiary) and Overseas Business, which posted double-digit growth Institutional accounting basis Co
Slide 8: Revenue Contribution by Segment
Revenue Contribution by Segment (YoY, Institutional accounting basis) Bil. yen Major Factors* FY 3/2021 Revenue 506.1 (+3%) Cup type: CUP NOODLE PRO, CUP NOODLE KARAMEN, DONBEI and U.F.O. performed well. Bag type: RAOH and BAKURETSU KARAMEN performed steadily. Others: The rice category, including CU
Slide 9: Core OP Results by Segment
Core OP Results by Segment Domestic Instant Noodles Business and Overseas Business declined due to raw materials price hikes and negative rebound from the impact of COVID-19 in FY 3/2021. On the other hand, performance of the Domestic Business and China (incl. H.K.) met forecast due to the impact of
Slide 10: Existing Businesses Contribution to Core OP by Segment
Existing Businesses Contribution to Core OP by Segment (YoY, Institutional accounting basis) Bil. yen FY 3/2021 Core OP 52.4 Major Factors* +) Increased in operating profit due to increased sales, product mix, etc. Domestic NISSIN FOOD PRODUCTS (1.4) Instant Noodles - ) Increased in raw material cos
Slide 11: Analysis of Core OP of Existing Businesses
Analysis of Core OP of Existing Businesses (YoY, Institutional accounting basis) Bil. yen Decrease Increase Major Factors: Domestic Major Factors: Overseas A： Revenue (Domestic) +1.1 +Increase in Instant Noodles Business + Increased in revenue across all regions, (including the impact of change reve
Slide 12: FY 3/2023 Forecasts
FY 3/2023 Forecasts 11
Slide 13: Full-Year Consolidated Earnings Forecasts for FY 3/2023
Full-Year Consolidated Earnings Forecasts for FY 3/2023 (Excluding Russia/Ukraine impact) Aiming for 52.0 billion yen in core operating profit of existing businesses. We expect IFRS operating profit to be between 47.0 billion yen and 49.5 billion yen, driven by ongoing aggressive investment in new b
Slide 14: FY 3/2023 Forecasts by Segment
FY 3/2023 Forecasts by Segment Aim for increase revenues and operating profits in all business segments from FY 3/2022 results Revenue (IFRS) Core Operating Profit (Non-GAAP) Bil. yen FY 3/2022 Results FY 3/2022 Results FY 3/2023 FY 3/2023 Forecasts Revenue YoY change Forecasts Core OP YoY change NI
Slide 15: FY 3/2023 Earnings Forecast Assumptions: Raw Material Prices
FY 3/2023 Earnings Forecast Assumptions: Raw Material Prices The FY 3/2023 plan includes raw material cost impact of 17 billion yen based on market conditions before the Russia/Ukraine situation Flour Palm oil * Flour futures prices on * Palm oil futures prices on the the Chicago Commodity Malaysian
Slide 16: FY 3/2023 Consolidated Earnings Forecast: Approach
FY 3/2023 Consolidated Earnings Forecast: Approach We had planned for mid-single digit growth before the situation in Russia/Ukraine. We will assess the impact of this issue on earnings and take necessary measures Growth Under Rising Uncertainty Core Operating Profit of Existing Businesses (Billions
Slide 17: Reducing Cross-Shareholdings
Reducing Cross-Shareholdings We continue to reduce our cross-shareholdings. With respect to the policy disclosed in May 2021, which called for a reduction of 10 billion yen over the course of two years, we achieved 7.8 billion yen in reductions during FY 3/2022, and we intend to further reduce cross
Slide 18: Agenda: Progress of Mid- to Long-Term Growth Strategy
I. FY 3/2022 Financial Results and FY 3/2023 Forecasts …………… P3~16 Takashi Yano, Executive Officer and CFO II. Progress of Mid- to Long-Term Growth Strategy …………… P18~39 Koki Ando, Representative Director, President and CEO Noritaka Ando, Executive Vice President & Representative Director, COO, and
Slide 19: Progress of Mid- to Long-Term Growth Strategy: EARTH FOOD CHALLENGE 2030
II. Progress of Mid- to Long-Term Growth Strategy Strengthen Cash Generation EARTH FOOD Pursue New Capabilities of Existing Businesses CHALLENGE 2030 Businesses Make a significant shift in Co-create foods of the future A challenge to utilize finite with food science our profit portfolio through reso
Slide 20: Deeper Global Branding
Deeper Global Branding Promote product development and marketing in response to market conditions in each area and the preferences of target customers while adhering to the core values of CUP NOODLES FY 3/2022 Global Branding Initiatives Accelerate shift to premium products (expand sales of premium
Slide 21: Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS)
Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS) Three main brands contributed significantly to a revival in cup-type instant noodles. Reaffirming the value of instant noodles under inflation. Establish new prices by proposing value-added (solutions) and build a structure that enables sustai
Slide 22: Overseas Business: The Americas (NISSIN FOODS U.S.A)
Overseas Business: The Americas (NISSIN FOODS U.S.A) Steady implementation of shift to premium products and strong sales, including base products. Aiming to strengthen earnings base further by revising prices in anticipation of inflation and by preparing to build a stable supply chain infrastructure
Slide 23: Overseas Business: The Americas (NISSIN FOODS DO BRASIL)
Overseas Business: The Americas (NISSIN FOODS DO BRASIL LTDA.) Increases in raw material costs and other expenses continued from FY 3/2021; covered increases through sales volume based on aggressive marketing and sales measures, as well as two price revisions. We focused on value enhancement and val
Slide 24: Overseas Business: China (Incl. H.K.)
Overseas Business: China (Incl. H.K.) Aiming to maximize profit-earning opportunities by strengthening brands and expanding multi-category businesses in the Instant Noodles Business FY 3/2022 Review ◼ Growth of the Instant Noodle Business ⁻ Expanded sales of high-value-added products ⁻ Achieved wide
Slide 25: Progress of Mid- to Long-Term Growth Strategy: EARTH FOOD CHALLENGE 2030
II. Progress of Mid- to Long-Term Growth Strategy Strengthen Cash Generation EARTH FOOD Pursue New Capabilities of Existing Businesses CHALLENGE 2030 Businesses Make a significant shift in Take on the challenge to Co-create foods of the future our profit portfolio through with food science utilize f
Slide 26: Materialities
Materialities We are tackling the two axes of Well-being and Sustainability to improve non-financial value Food Safety and Security Challenge to Climate Change Address climate change issues through Ensuring food safety and security--our most green electricity, green ingredients, and important manage
Slide 27: Tokyo Nutrition for Growth Summit 2021 Commitment
TOKYO NUTRITION FOR GROWTH SUMMIT 2021 Commitment 1 ２ Develop a new testing method capable of Improve the health and nutritional properties of all simultaneous and highly accurate testing of all products. allergen-labeled products by 2030. Expand annual sales of wellness products to 23 Conduct at le
Slide 28: Progress of EARTH FOOD CHALLENGE 2030
Progress of EARTH FOOD CHALLENGE2030 CO2 reduction SCOPE1+2 -30%, SCOPE3 -15% SCOPE1+2 2021 Results* 100% Sustainable Palm Oil Compared with base year 2018 +5.3% (previous year) +2.7% 438,000 t-CO2 427,000 t-CO2 SCOPE3 2021 Results 2020 Results Compared with base year 2018 26% (previous year) 36% +0
Slide 29: Major Sustainability-Related Initiatives
Major Sustainability-Related Initiatives Aiming for resilient growth through comprehensive efforts in our products and our organization Containers Alternative Packaging Food Materials Eliminated Plastic Lid Stickers First in Japan! Edible Cultured Meat Technologies Lid stickers (plastic), reducing p
Slide 30: Main corporate governance organizations and composition
Main corporate governance organizations and composition Ensuring management transparency by exercising supervisory functions Management Advisory Audit & Board of Directors Committee Supervisory Board Title Name Ratio of Outside Directors 62.5％ Ratio of Outside Directors 60.0％ Ratio of Outside Direct
Slide 31: Skills based on Mid- to Long-Term Growth Strategy
Skills based on Mid- to Long-Term Growth Strategy Ensuring a wealth of experience, a high level of insight and a high degree of expertise throughout the Board of Directors Koki Ando Noritaka Ando Yukio Yokoyama Ken Kobayashi Masahiro Okafuji Masato Mizuno Yukiko Nakagawa Eietsu Sakuraba Masahiko Saw
Slide 32: Information Disclosure Initiatives
Information Disclosure Initiatives Non-financial information including ESG is presented in various media Value report describes the NISSIN FOODS Group mid- to Report on the NISSIN FOODS long-term value creation process and non-financial Group approach to Corporate Social information that forms the f
Slide 33: Progress of Mid- to Long-Term Growth Strategy: EARTH FOOD CHALLENGE 2030
II. Progress of Mid- to Long-Term Growth Strategy Strengthen Cash Generation EARTH FOOD Pursue New Capabilities of Existing Businesses CHALLENGE 2030 Businesses Make a significant shift in Co-create foods of the our profit portfolio through A challenge to utilize finite future with food science aggr
Slide 34: Delicious Complete Meals, Launch of the KANZEN MEAL brands
Creating New Value through Synergies between New Businesses and Existing Brands We will create new value for NISSIN FOODS Group and contribute to social issues by leveraging synergies with existing mainstay brands such as CURRY MESHI and RAOH, as well as Group companies × ＝ NISSIN FOODS Food Technol
Slide 35: 33 nutrients in an ideally balanced product design
33 nutrients in an ideally balanced product design KANZEN MEAL is designed to allow people to take a balanced of the 33 nutrients set in the Japanese dietary intake standards. The three largest nutrients-protein, fat, and hydrocarbons-are perfectly balanced. In addition, vitamins, minerals, and esse
Slide 36: Create a wide variety of touch points with KANZEN MEAL
Create a wide variety of touch points with KANZEN MEAL through various channels 2023- 2022- Employee cafeterias, Restaurant industry Packaged Foods delicatessen, etc. Fast food NISSIN Group’s food technology Company provided food and brand-asset utilization Lunch Boxes Meal Kits Family restaurants I
Slide 37: Aim to achieve sales of 3 billion yen
Launched from Packaged Foods in 2022 Aim to achieve sales of 3 billion yen mainly in packaged foods in the first year (FY 3/2023) . In the next fiscal year (FY 3/2024), we aim to achieve sales of 10 billion yen through further expansion of packaged foods development. 36
Slide 38: Multifaceted Development of Complete Nutrition Technology
Multifaceted Development of NISSIN FOODS Complete Nutrition Technology Average 500 kcal/meal Salt equivalent: 3.0g or less per meal Perfect PFC balance Contains all 33 nutrients What's more, it’s very appetizing as well! 37
Slide 39: Specific Approaches to Each Touch Point
Specific Approaches to Each Touch Point for Realizing a nation on the cutting edge of preventive medicine 1 Packaged foods Retail sales Lunchboxes, prepared foods, base materials 2 Employee cafeterias 3 Healthcare cooperation Promoting health management • Improving lifestyle habits using apps • Impr
Slide 40: Technology Search and Partnerships to Create Future Foods
Technology Search and Partnerships to Create Future Foods Concrete study of realizing Well-being through food in Comprehensive partnership Woven City, the city of the agreement based on demonstration experiment, is Complete Nutrition Meals launched Collaboration for use of Verification of virtual hu
Slide 41: Agenda: Appendix
I. FY 3/2022 Financial Results and FY 3/2023 Forecasts …………… P3~16 Takashi Yano, Executive Officer and CFO II. Progress of Mid- to Long-Term Growth Strategy …………… P18~39 Koki Ando, Representative Director, President and CEO Noritaka Ando, Executive Vice President & Representative Director, COO, and
Slide 42: Price Revisions (Domestic Business)
Price Revisions (Domestic Business) Company Name Main Products Price Revision Date Price Revision Rate Bag-type instant noodles, cup-type instant noodles, NISSIN FOOD PRODUCTS Beginning with June 1, 2022 shipments 5%-12% increase in suggested retail price cup-type instant rice, cup-type instant soup
Slide 43: Price Revisions (Overseas)
Price Revisions (Overseas) The Americas Main Products Price Revision Date May 2021 U.S. Bag-type instant noodles, cup-type instant noodles January 2022 Bag-type instant noodles July 2021 Brazil Bag-type instant noodles, cup-type instant noodles February 2022 May 2021 Mexico Bag-type instant noodles,
Slide 44: Domestic Non-Instant Noodles Business
Domestic Non-Instant Noodles Business Pursue growth in each category by focusing on the strengths and added value of existing brands Issues to address include expanding high-value-added products further and establishing new innovative products in the market FY 3/2022 Review -Chilled and Frozen Foods
Slide 45: Overseas Business: EMEA
Overseas Business: EMEA Pursued strategies that leveraged unique NISSIN strengths under the concept of Authentic Asia Delivered significant growth in number of servings sold due to new channel development combined with online advertising and expansion into new countries FY 3/2022 Review ◼ Authentic
Slide 46: Overseas Business: Asia
Overseas Business: Asia Steady sales of premium products, especially in Thailand, Singapore and Indonesia Pursuing a strategy for premium bag-type instant noodles, building a profitable model in all regions FY 3/2022 Review ◼ Unique premium bag-type products drive growth ⁻ GEKI Series (Thailand, Vie
Slide 47: Composition by Segment in China
Composition by Segment in China Revenue by segment Revenue Composition by segment （Hong Kong） 20 Bil. yen 19 18 17 19.6 16 17.6 15 35.3％ FY 3/2021 FY 3/2022 （Mainland China） 40 Bil. yen 64.7％ 35 30 25 35.9 30.6 Mainland China Hong Kong 20 15 FY 3/2021 FY 3/2022 46
Slide 48: Skills of each director
Skills of each director Skill Details and reasons for selection Corporate In order to formulate and execute a medium- to long-term sustainable growth strategy amid a dramatically changing business environment, it management is necessary to have a solid knowledge, experience, and achievements in over
Slide 49: Disclaimer and availability of presentation materials
Company plans, business forecasts, strategies, and other information contained in this document are based on management judgments derived from information available at the time of this publication. Be aware that these are only future projections, and actual results may differ due to various risks an