Slide 1: Financial Results for the fiscal year ending March 2018
Financial Results for the fiscal year ending March 2018 FP Corporation May 7, 2018 FP Corporation ・
Slide 2: Cautions for Handling This Material
Cautions for Handling This Material We have paid extremely close attention to the information provided through presentations at this session and contained in the handouts. The forward-looking statements included in the information are our estimates based on the information available at the time of p
Slide 3: Table of Contents
= Table of Contents = Results and Plan Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami ... 4 For Expansion of Corporate Value President Morimasa Sato . . . 14 Supporting Data . . . 38 FP Corporation ・
Slide 4: Consolidated Financial Results for the fiscal year ended March 2018
Consolidated Financial Results for the fiscal year ended March 2018 Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami FP Corporation ・
Slide 5: Financial Results Summary
Financial Results Summary (Results for the FY ended March 2018) Results for Full year full y ear projections (original) full year projections (revised) FY ending March2017 FY ending March2018 FY ending March2018 FY ending March2018 Factors of difference (Plan) increase/ Year-on progress progress Uni
Slide 6: Increase/Decrease in Ordinary Profit
Increase/Decrease in Ordinary Profit (Results for the FY ended March 2018 ) 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Fiscal year ended March 2017 Unit: billion yen 15.74 Difference from Forecast First half 7.91 Second half 7.83 Revised Forecast projections foecast （1Q,2Q） （3Q,4Q） (Feb 6) Differen
Slide 7: Capital Investments and R&D cost
Capital Investments and R&D cost (Results for the FY ended March 2018 ) Results for Full year full year projections FY ended March 2017 FY ending March 2018 FY ending March 2018 Increase / Progress Unit: million y en Performance Performance decrease Year-on-year Planned rate Tangible fixed assets 20
Slide 8: Balance Sheet
Balance Sheet (Results for the FY ended March 2018 ) Previous consolidated First half of the consolidated fiscal year fiscal year 'FY ended March 2017 'FY ended March 2018 Increase/ Year-on- Breakdown of main increases As of March 31,2017 As of March 31,2018 Unit: million yen decrease y ear and decr
Slide 9: Cash Flows
Cash Flows (Results for the FY ended March 2018 ) Results for Full year 'FY ending March 2017 'FY ending March 2018 Unit: million yen Performance Performance Breakdown of Main Items Income before income taxes 13,234 Depreciation 11,706 Increase in notes and accounts receivable -5,065 - trade CF from
Slide 10: Plan for the fiscal year ending March 2019
Plan for the fiscal year ending March 2019 FP Corporation ・
Slide 11: Outline of Plan for Account Settlement
Outline of Plan for Account Settlement (Plan for the FY ending March 2019 ) Results for Full year Full year projections First half projections FY ending March2018 FY ending March2019 FY ending March2019 increase/ Year-on increase/ Year-on Unit: million yen Performance pe rc e n tage Planned pe rc e
Slide 12: Planned Increase/Decrease in Ordinary Profit
0.0 Planned Increase/Decrease in Ordinary Profit 20.0 40.0 60.0 80.0 100.0 (Plan for the FY ending March 2019 ) 120.0 140.0 160.0 Fiscal year ended March 2018 Unit: billion yen 前年 13.55 First half 6.63 Second half 6.92 The Price of material -2.60 －1.40 －1.20 Year on year Sales Efforts +4.80 +1.85 +2
Slide 13: Planned Capital Investment and R&D Cost
Planned Capital Investment and R&D Cost (Plan for the FY ending March 2019 ) Results for Full year full year projections First half projections FY ended March 2018 FY ending March 2019 FY ending March 2019 Increase / Increase / Progress Unit: million y en Performance Planned decrease Year-on-year Pl
Slide 14: To Increase Corporate Value
To Increase Corporate Value President Morimasa Sato
Slide 15: Circumstances Surrounding the Retail Industry
Circumstances Surrounding the Retail Industry Retail Industry Increase the value of merchandise Improve workability in stores Shift to packaging outsourcing 15
Slide 16: Conditions of Convenience Stores and Supermarkets
Conditions of Convenience Stores and Supermarkets Japan Franchise Association Japan Chain Stores Association Trends in YoY Comparison of Sales at Trends in YoY Comparison of Sales at Convenience Stores and Supermarkets Supermarkets by Product Category Supermarkets Supermarkets Agricultural products
Slide 17: Changes in the Number of Households
Changes in the Number of Households Total number of households Total of one-person households Households comprising 2015 one person aged 65 or over 2020 2025 Peak in 2023 2030 Peak in 2032 2035 2040 Source: The graph was prepared by FPCO based on data from the National Institute of Population and So
Slide 18: Accelerated Entry into Home Meal Replacement Market
Accelerated Entry into Home Meal Increase in one-person Population Increase in two-income aging Replacement Market households households Source: Japan Ready-Made Meal Association: “Trends of Ready-Made Meal Market Size” in White Paper on Ready-Made Meals Eating out Cooking at home Approx. 25 trillio
Slide 19: Changes in Retail Business
Changes in Retail Business FY2016 market scale Slogans Trends in Scales of Food Markets Eating out Eating out 25.4 trillion yen Boost take-out food Super- 8.4 trillion yen Offer fresh food in the form of prepared food markets Total 12.9 trillion yen Promote prepared food Super- Convenience 7.4 trill
Slide 20: Entrenchment of Namakara Sozai
Entrenchment of Namakara Sozai 2017 and later 2016 Items for spring & summer 2014‒2015 Microwavable items for developed 2013 winter taking root Nationwide expansion Numerous different Marketable items Namakara Sozai launched options proposed becoming apparent Oysters as the first item in the series
Slide 21: Creating a Worker-Friendly Environment in the Era of Labor Shortage
Creating a Worker-Friendly Environment in the Era of Labor Shortage MFP Innove Series Chateau Platter series Food options can be easily increased by combining different The lid is securely closed. Cumbersome taping is not main trays with inner containers. required. Moist food Packaging outside store
Slide 22: Use of Containers in Vegetables and Fruit Selling Spaces
Use of Containers in Vegetables and Fruit Selling Spaces: Up 12% year on year Before After Larger quantity on display with lidded containers Before After From bags to containers 22
Slide 23: Soaring Material Prices
Soaring Material Prices Price increase Price increase announced in announced in May 2017 Feb. 2018 February 2017 April 2018 and later Logistics 203 January 2018 204 expenses Domestic price of July 2017 195 general polystyrene 185 April 2016 Labor 163 October 2017 April 2018 and later 140 + expenses
Slide 24: Soaring Material Prices -> FPCO's Strength
Soaring Material Prices -> FPCO’s Strength Nationwide supply capacity of recycled PET raw material will be 50,000 tons Chubu 20,000 tons Kyushu Kanto 10,000 tons 20,000 tons Location: Yachiyo, Yuki, Ibaraki Prefecture Investment: 15.5 billion Total floor area: 12,650 tsubo FY ended March 2011 FY end
Slide 25: Soaring Material Prices -> FPCO's Strength
Soaring Material Prices -> FPCO’s Strength Nationwide supply capacity of recycled PET raw material will be 50,000 tons Eco products Virgin products Improved demand-and-supply balance of Anti-dumping tax on imported PET plastics used PET bottles in Japan Anti-dumping tax on imports from China In July
Slide 26: Eco Tray / Eco APET CO2 Reduction
Soaring Material Prices -> FPCO’s Strength Eco Tray / Eco APET CO2 Reduction Eco Tray CO2 reduction effect Eco APET In FY ended March 2018, CO2 emissions were cut by 113,000 tons a year (Eco Tray: 37,000 tons / Eco APET 70,000 tons / Eco OPET 6,000 tons) Comparison between FPCO’s virgin products and
Slide 27: Diversity Management That Maximizes Abilities
Diversity Management That Maximizes Abilities September 2017 (Toyo Keizai, Inc.) Sorting centers: 10 locations Disabled employment ranking: 7 in-house locations 1 location with a contractor 1st for 4 consecutive years 2 locations with business alliance partners February 2018 (Tokyo Voluntary Act
Slide 28: Sales Shares of Original Products
Sales Shares of Original Products Conventional materials Conventional materials Results as of the end of March 2018 (79% in the same period a year earlier) New products made of conventional materials* (54% in the same period 79% a year earlier) Eco PSP Plan as of the end of March 2019 60% Eco APET 5
Slide 29: Soaring Logistics Expenses -> FPCO's Strength
Soaring Logistics Expenses -> FPCO’s Strength Logistics and Production Bases Nationwide Logistics expenses are swelling mainly for long-distance transport, bulky cargo and heavy items FPCO is capable of producing and delivering products in separate areas. Volume Hokkaido DC PC Plant Reduction Chubu
Slide 30: Route Planning for Optimizing Delivery Routes
Soaring Logistics Expenses -> FPCO’s Strength Route Planning for Optimizing Delivery Routes <Trend in load (in volume units*) for shipping sold items per truck> (* One volume unit equals nearly 0.28 cubic meters.) FY2015 FY2016 FY2017 1,395 1,393 1,388 1,389 1,373 1,376 1,369 1,364 1,362 1,359 1,362
Slide 31: The Voice Picking System Increases Work Efficiency
Soaring Labor Expenses -> FPCO’s Strength The Voice Picking System Increases Work Efficiency 2. Picking with 1. Instructions on the hands picking received Complaints Regarding Logistics with the ears (at Picking Centers) 2.9 2.2 1.3 0.7 0.5 3. Verbal FY2013 FY2014 FY2015 FY2016 FY2017 response 776 P
Slide 32: Automation Increases Work Efficiency
Soaring Labor Expenses -> FPCO’s Strength Automation Increases Work Efficiency FY ended March 2018 Plan for FY ending March 2019 Labor saving of approx. 94 workers Labor saving of approx. 118 workers Effect: 300 million yen/year Effect: 400 million yen/year Automatic dusting Automated packing system
Slide 33: Group Companies' Capital Investment
Group Companies’ Capital Investment FPCO ALRight Co., Ltd. Headquarters and Plant (Film Plant) FPCO Gravure Co., Ltd. Headquarters and Plant (Film Printing Plant) Completed in Jan. 2018 Completed in Mar. 2018 Location: Kasaoka-shi, Okayama Location: Asakuchi-shi, Okayama Investment: 2.8 billion yen
Slide 34: Toward the Expansion of Goods Sales
Toward the Expansion of Goods Sales Manufacturing & Sales capabilities and Sales information-gathering ability Gain more online orders FP Corporation Smartphone Customers placing orders Goods Purchases on the phone or by fax Wholesalers MD - Selection of items and Small-lot shipping concentration of
Slide 35: Strategic Investment
Strategic Investment Capital Investment Social Conditions Investment Effect Development of the Ratio of Increase profitability world’s first material original products <Growing microwave market> with high value-added 2012-: OPET equipment No. 1 58% products ESG investment in ESG investment in core b
Slide 36: Growth Strategy
Growth Strategy Considering overseas expansion Considering M&A Long-term plan Growth Strategy 2 Net sales: ¥300 bn Billion yen Ordinary profit: ¥30 bn Net sales Home delivery market 300 Frozen food market 30 Ordinary profit Markets of materials (Net sales) Growth Strategy 1 and consumables (Ordinary
Slide 37: To Increase Corporate Value
To Increase Corporate Value “We ensure that we deliver the best-quality products at competitive prices when they are needed.” Hardware Software Balance People We adhere to the FPCO-DNA and continue to make proposals with the foresight of the near future based on our workplace-oriented policy and cus
Slide 38: Supporting Data
Supporting Data FP Corporation ・
Slide 39: Raw Material Trends
Raw Material Trends FY ended Mar 2018 May Each company announced price revision FY ended Mar 2015 Other companies again announced Due to the temporary price drop of raw materials, Naphtha revised prices the difference between the compression of the price range FY ended Mar 2014 and the timing E
Slide 40: World's First Sheets and Materials
World’s First Sheets and Materials Evolution from a sheet processing manufacturer PP: polypropylene PS: polystyrene PSP: foamed polystyrene Easy to mold Heat-resistant: +110ºC Low raw material ratio High oil resistance Weight reduction is possible Foam is hard and resistant to High ins
Slide 41: Factors influencing Ordinary Profit
Factors influencing Ordinary Profit Unit:100 million yen '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 Plan '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full half half year half half year ha
Slide 42: Trends in Capital Investment and R&D Costs
Trends in Capital Investment and R&D Costs FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ending FY ending FY ending 2003 2004 2005 20
Slide 43: Initiatives to Market
Initiatives to Market Products Market size: ¥500 billion Goods Market size: Over ¥2.5 trillion Containers for simple packaging Supplies and packaging materials/equipment In stores Packaging outside stores Retail / Ready-made Meals / Restaurant Dining Agricultural Processed Fresh fish Livestock Prepa
Slide 44: Information on the Facility Tour
【 Information on the Facility Tour 】 Contact: Takashima at the Corporate Planning Department (TEL)+81-3-5325-7756 (MAIL)ir_7947@fpco-net.co.jp at a convenient time for you. An opportunity to take a look at the state-of-the-art Production, Distribution, Recycling operations Kanto 30 minutes from Koga