Sakata Seed Corporation · TSE:1377

Sakata Seed — Q2 FY2021 Earnings Presentation

40 slides from Sakata Seed's earnings presentation, Jan 22, 2021

  1. Slide 1: Financial Highlights Material for the 2nd quarter of Period Ending May 2021

    Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Financial Highlights Material for the 2nd q

  2. Slide 2: Table of Contents

    Table of Contents Ⅰ Actions and impact of COVID-19 .... 3～7 Ⅱ Overview of 2nd quarter of .... 8～20 Period Ending May 2021 Ⅲ Forecast for Period Ending May 2021 and ..... 21～26 Dividend Policy Ⅳ Topics ..... 27～34 Ⅴ Appendix ..... 35～39 Copyright©SAKATA SEED CORPORATION All Rights Reserved. 2

  3. Slide 3: Actions and impact of COVID-19

    Ⅰ Actions and impact of COVID-19 Copyright©SAKATA SEED CORPORATION All Rights Reserved. 3

  4. Slide 4: Actions against COVID-19

    Actions against COVID-19 Actions against COVID-19 and current situation Prevention of infection Situation in each Division  Prompt Actions based on government  R&D: No significant effects with thorough policy infection prevention  Thorough wearing of masks and  Production: Progress as planed as

  5. Slide 5: Impact of COVID-19 on First-Half Results

    Impact of COVID-19 Impact of COVID-19 on First-Half Results Restriction on movement of people ・Decrease in demand for cut flowers due to simplification of ceremonial ・Decrease of occasions visitors ・Decrease in demand for flowerbed seedling for landscapes such as parks ・Event canceled ・Increase in d

  6. Slide 6: Impact of COVID-19 on First-Half Results: movement of goods

    Impact of COVID-19 Impact of COVID-19 on First-Half Results Restriction of movement of goods ・Logistical delay ・Impact on customer shipments due to reduced air shipment ・Increase in ・increase in air fares transportation costs Although there were restrictions on the transportation of seeds, responded

  7. Slide 7: Medium- to long-term risk factors

    Impact of COVID-19 Medium- to long-term risk factors Impact on product development due to prolonged restrictions on movement Building an online system as a complementary and alternative measure While, field trials and cultivation guidance are important for the introduction of new varieties Concerns

  8. Slide 8: Overview of 2nd quarter of Period Ending May 2021

    Ⅱ Overview of 2nd quarter of Period Ending May 2021 Figures in the document are rounded for fractions less than the unit. Please be advised that some figures may differ from the summary of financial results. Copyright©SAKATA SEED CORPORATION All Rights Reserved. 8

  9. Slide 9: Performance overview (Consolidated)

    Performance overview for 2nd quarter of period ending May 2021 （Consolidated） Significant increase in sales and profit compared to the previous year Unit:100 million yen Nov./2019 Nov./2020 Difference Difference(%) Initial forecast Sales 287 315 29 10.0% 290(+25) Gross profit 171 188 18 10.3% - Gros

  10. Slide 10: Net Income

    Results for 2nd quarter of period ending May 2021 （Net Income） Significant increase in net income due to increase sales Unit: 100 million yen Main factors causing change 0 10 20 30 40 50 in net income 60 Nov./2019 Net income 31 Gross profit +18 Increase due to increase in sales SGA Increase in expen

  11. Slide 11: Results by business segment

    Results for 2nd quarter of period ending May 2021 （By business segment） Increase in sales in all business segment Unit: 100 million yen Sales Operating income Nov./19 Nov./20 Difference Difference(%) Nov./19 Nov./20 Difference Difference(%) Domestic wholesale 80 82 2 2.7% 26 30 3 13.0% Overseas whol

  12. Slide 12: Sales by product

    Results for 2nd quarter of period ending May 2021 （Sales by product） Significant increase in vegetable seeds, decrease in flower seeds affected by COVID-19 Unit: 100 million yen 270 280 290 300 310 320 Main factors causing change in sales Nov./2019 Sales 287 Increase in broccoli and tomato, Vegetabl

  13. Slide 13: Sales by customers' region

    Results for 2nd quarter of period ending May 2021 （Sales by customers’ region） Increase sales in every region in terms of local currencies Unit: 100 million yen 270 280 290 300 310 320 330 Main factors causing change in sales Nov./2019 Sales 287 Strong sales in vegetable seeds Japan +8 and landscape

  14. Slide 14: Sales by region: Japan

    Sales by region for 2nd quarter of period ending May 2021 (1)【 Japan 】 Decrease in flower seeds affected by COVID-19, but increase in vegetable seeds, materials and landscape business Unit: 100 million yen 18/11月 Nov./2018 114 19/11月 Nov./2019 114 －1 （－0.9% ） －1 +0 －2 －1 －3 ＋6 20/11月 20/11月 Nov./202

  15. Slide 15: Sales by region: North and Central America

    Sales by region for 2nd quarter of period ending May 2021 (2)【 North and Central America 】 Strong sales in vegetable seeds, slight decrease in flower seeds affected by COVID-19 Unit: million dollars 18/11月 Nov./2018 39 5 44 19/11月 Nov./2019 37 6 43 －１ （－2.0%） +3 20/11月 20/11月 Nov./2020 40 6 46（+7.0%

  16. Slide 16: Sales by region: Europe and Middle East

    Sales by region for 2nd quarter of period ending May 2021 (3) 【 Europe and Middle East】 Slight decrease in flower seeds affected by COVID-19, but significant increase in vegetable seeds Unit: million euros 18/11月 Nov./2018 31 9 40 19/11月 Nov./2019 34 10 +4 44 （+9.8%） +4 20/11月 20/11月 Nov./2020 39 9

  17. Slide 17: Sales by region: South America

    Sales by region for 2nd quarter of period ending May 2021 (4)【 South America 】 Significant increase in sales due to strong sales of broccoli, squash and sunflower Unit: million Real 18/11月 Nov./2018 54 3 57 +2 19/11月 Nov./2019 58 1 59（+2.7%） +22 20/11月 20/11月 Nov./2020 76 4 81（+36.6%） ■Vegetable see

  18. Slide 18: Sales by region: Asia

    Sales by region for 2nd quarter of period ending May 2021 (5)【 Asia 】 Significant increase in sales due to shipping carrots for China Unit: 100 million yen 18/11月 Nov./2018 41 6 48 ＋2 19/11月 Nov./2019 41 9 50 （＋5.0%） ＋10 20/11月 20/11月 Nov./2020 52 8 60 （＋19.9%） ■Vegetable seeds ■Flower seeds and oth

  19. Slide 19: Sales by region: Other regions (Africa and Oceania)

    Sales by region for 2nd quarter of period ending May 2021 (6)【Other regions(Africa and Oceania)】 Strong sales in vegetable seeds despite of weak South African rand Unit: 100 million yen 18/11月 Nov./2018 10 1 11 19/11月 Nov./2019 9 1 10（－8.8%） －1 ＋1 20/11月 20/11月 Nov./2020 11 1 11（＋12.8%） ■Vegetable s

  20. Slide 20: Main selling, general and administrative expenses breakdown

    Main selling, general and administrative (SGA) expenses for 2nd quarter of period ending May 2021 Slight decrease from the previous fiscal year due to the impact of foreign exchange rates and unused business travel expenses Unit: 100 million yen; consolidated basis (Breakdowns given on the basis of

  21. Slide 21: Forecast for Period Ending May 2021 and Dividend Policy

    Ⅲ Forecast for Period Ending May 2021 and Dividend Policy Copyright©SAKATA SEED CORPORATION All Rights Reserved. 21

  22. Slide 22: Forecast for period ending May 2021 (Consolidated)

    Forecast for period ending May 2021 (Consolidated bases) Upward adjustment of sales and profit items Period2021 Period2021 Period2020 Unit:100 million yen Initial forecast Revised forecast Difference Difference(%) Results Sales 617 648 31 5.0% 617(＋31) Gross profit 342 355 13 3.9% 344(＋12) Gross pro

  23. Slide 23: Sales by customers' region (compared to initial forecast)

    Forecast for period ending May 2021: Sales by customers’ region (compared to initial forecast) Sales forecast revised upward significantly Unit: 100 million yen 590590 600 610 610 620 630 630 640 650 650 660 Major factors likely to Period 2021 cause change in sales Initial 617 forecast Japan +3 Incr

  24. Slide 24: Sales by customers' region (compared to the previous year)

    Forecast for period ending May 2021: Sales by customers' region (compared to the previous year) Expecting increase in sales forecast for results compared to the previous year Unit: 100 million yen 590 610 630 650 Main factors likely to 590 600 610 620 630 640 650 660 cause change in sales Period 202

  25. Slide 25: Main SGA expenses breakdown forecast

    Main selling, general and administrative (SGA) expenses for period ending May 2021 Increased 190 million yen from initial forecast Unit: 100 million yen; consolidated basis (Breakdowns given on the basis of locations of head office and major subsidiaries) Compared to initial Compared to forecast pre

  26. Slide 26: Dividend policy

    Dividend policy Interim dividends decided at 15 yen; year-end dividends forecast at 18 yen Our company considers the return of profits to shareholders to be an important management issue, and has adopted a basic policy of ensuring a stable and continuous distribution of profits while securing intern

  27. Slide 27: Topics

    Ⅳ Topics Copyright©SAKATA SEED CORPORATION All Rights Reserved. 27

  28. Slide 28: Topics

    Topics １ Actions against COVID-19 Establishment of the online system Enhancement of video promotion Responding to “stay-at-home” demand ２ Results of R&D Zinnia “Profusion Red Yellow Bicolor” wins golds at two major world flower competitions Copyright©SAKATA SEED CORPORATION All Rights Reserved. 28

  29. Slide 29: Establishment of the online system

    1 Actions against COVID-19 Establishment of the online system Hold important events such as business meetings and field exhibitions online Online business meeting : SAKATA Fair ONLINE (Japan) Our largest business meeting Introduction of video contents such as latest varieties of flowers and vegetabl

  30. Slide 30: Enhancement of video promotion

    1 Actions against COVID-19 Enhancement of video promotion Accelerating the development of new sales tools spurred by pandemic of COVID-19 Copyright©SAKATA SEED CORPORATION All Rights Reserved. 30

  31. Slide 31: Increase in stay-at-home demand (Domestic retail business)

    1 Actions against COVID-19 Increase in “stay-at-home” demand (Domestic retail business) Characteristics of home gardening Noticeable points due to COVID-19 pandemic • Enjoyable for children and the elderly and • The vegetable garden is located near or at home affordable • No need for outings or outi

  32. Slide 32: Development of original products for retail

    1 Actions against COVID-19 Development of original products for retail “Seedfun.”series Even beginners and children can easily enjoy the cultivation from the seed. introduced in various media as a material for gardening beginners. Kit for beginners Easily sowing on horticultural soil which inflate w

  33. Slide 33: Zinnia Profusion Red Yellow Bicolor wins golds at two major world flower competitions

    2 Results of R&D Zinnia “Profusion Red Yellow Bicolor” wins golds at two major world flower competitions Picture taken by AAS Judge Rodger Tschantz at the University of Guelph in Canada  Distinct red and yellow coloration, the first time this coloration has been achieved in an interspecific zinnia

  34. Slide 34: Vegetable nourishes the people's body and flower nourishes the people's soul

    Establishment of healthy profit Establishment of a profitable structure and promoting key business model strategies in each region Development of a global supply Internal structural development to chain to boost supply reliability foster global enterprise growth and efficiency “Vegetable nourishes t

  35. Slide 35: Appendix

    Ⅴ Appendix 35

  36. Slide 36: Breakdown of external sales (1)

    Results for 2nd quarter of period ending May 2021: Breakdown of external sales (1) Others 3.6% Others 5.7% Bulbs 1.0% Materials Asia 19.0% 11.3% Domestic 38.5％ Seedlings South 4.0% America 4.8% By region By product Flowers 9.6% Vegetables Europe & 68.4% Middle East 18.8％ North & Central America 15.3

  37. Slide 37: Breakdown of external sales (2)

    Results for 2nd quarter of period ending May 2021: Breakdown of external sales (2) Difference of sales YoY by product and region (after eliminating internal transactions) Unit: 100 million yen Vegetables Flowers Seedlings Bulbs Materials Others Total North & Central America 2.6 -0.1 -0.0 － － -0.3 2.

  38. Slide 38: External sales by customers' region (Quarterly change)

    Results for period ending May 2021: External sales by customers’ region (Quarterly change) Overseas sales (by customers’ region) 1st Qtr QoQ QoQ (%) 2nd Qtr QoQ QoQ (%) Total YoY YoY (%) North & Central America (1,000US$) 17,617 2,994 20.5 28,091 -9 -0.0 45,708 2,985 7.0 Europe & Middle East (1,000E

  39. Slide 39: External sales by customers' region, period ending May 2020

    Results for period ending May 2020: External sales by customers’ region (Quarterly change) Overseas sales (by customers’ region) 1st Qtr QoQ QoQ (%) 2nd Qtr QoQ QoQ (%) 3rd Qtr QoQ QoQ (%) 4th Qtr QoQ QoQ (%) Total YoY YoY (%) North & Central America (1,000US$) 14,623 -2,988 -17.0 28,100 2,135 8.2 2

  40. Slide 40: Attention regarding forecasts

    Attention regarding forecasts This presentation document includes descriptions and materials on forecasts regarding performance, strategies and business plans of Sakata Seed Corporation. Those descriptions and materials are the Company’s estimates based on information available at the time of announ

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