Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — Q2 FY3/2021 Earnings Presentation
24 slides from Nissin Foods's earnings presentation, Nov 10, 2020
Slide 1: Financial Results for FY 3/2021 2Q
Financial Results for FY 3/2021 2Q Announced on November 10, 2020 Stock Code: 2897
Slide 2: Executive Summary
1 Executive Summary Aim to strengthen the business base to achieve the goals of the Medium-Term Business Plan 2021 and further growth Domestic: • Advance DX (Digital Transformation) and seek to expand business operations with a product supply framework that is rock solid even under highly uncertain
Slide 3: FY 3/2021 2Q Results: Summary
2 FY 3/2021 2Q Results: Summary (bil. yen) FY 3/2021 FY 3/2020 2Q Changes in Changes in 2Q Results Amount Ratio Results Revenue 241.1 +19.7 +8.9% 221.3 Operating profit 31.8 +12.1 +61.5% 19.7 Profit attributable to owners of the parent 21.9 +8.5 +63.1% 13.4 OP margin 13.2% +4.3pt 8.9% Profit attribu
Slide 4: Revenue Results by Segment
3 Revenue Results by Segment (bil. Yen) FY 3/2021 FY 3/2020 2Q Changes in Changes in 2Q Results Amount Ratio Results Instant noodles 115.1 +5.5 +5.1% 109.5 NISSIN FOOD PRODUCTS 97.0 +4.5 +4.9% 92.4 MYOJO FOODS 18.1 +1.0 +6.0% 17.0 Chilled and frozen foods 30.8 +2.9 +10.4% 27.9 Confectionery and beve
Slide 5: Revenue Contribution by Segment
4 Revenue Contribution by Segment Impact Major Factors (bil. yen) Cup type (+1%): CUP NOODLE, DONBEI and RAOH performed steadily. NISSIN Bag type (+14%): CHICKEN RAMEN, DEMAE ICCHO and NISSIN GOHOUBI RAOH performed FY 3/2020 2Q FOOD +4.5 steadily. Revenue 221.3 PRODUCTS Others (+9%): Rice categories
Slide 6: Operating Profit Results by Segment
5 Operating Profit Results by Segment (bil. yen) FY 3/2021 FY 3/2020 2Q Changes in Changes in 2Q Results Amount Ratio Results Instant noodles 18.9 +5.8 +44.7% 13.0 NISSIN FOOD PRODUCTS 16.5 +4.8 +41.0% 11.7 MYOJO FOODS 2.3 +1.0 +77.3% 1.3 Chilled and frozen foods 2.4 +1.4 +140.7% 1.0 Confectionery a
Slide 7: Operating Profit Contribution by Segment
6 Operating Profit Contribution by Segment (bil. yen) FY 3/2020 2Q Impact Major Factors Operating profit 19.7 NISSIN +: Increased revenue mainly due to price revisions, unused selling expenses and advertising expenses, and decreased in general and administrative expenses. NISSIN FOOD FOOD +4.8 - : I
Slide 8: Major Factors for Difference in Operating Profit (Impact of Non-Recurring Income and Expenses)
7 Major Factors for Difference in Operating Profit (Impact of Non-Recurring Income and Expenses) (bil. yen) Difference in FY 3/2021 FY 3/2020 Difference in non-recurring Major factors of non-recurring 2Q 2Q operating profit income income and expenses Results Results and expenses NISSIN FOOD PRODUCTS
Slide 9: Analysis of Operating Profit: Consolidated (Domestic / Overseas)
8 Analysis of Operating Profit：Consolidated (Domestic / Overseas) YoY change Domestic Decrease factors Increase factors ◼ Revenue (Domestic) +4.9 + Impact of price revisions, increased in sales, A: Revenue (including the impact of improvement in selling expense ratio, etc. (Overseas) +2.5 ◼ CoGS rat
Slide 10: Progress of Medium-Term Business Plan 2021 and Sustainability
Progress of Medium-Term Business Plan 2021 and Sustainability Representative Director, President and CEO Koki Ando
Slide 11: Progress of Medium-Term Business Plan 2021 (1)
10 Mid-term Plan Progress of Medium-Term Business Plan 2021 (1) Mid-term Plan KPIs (IFRS) FY 3/2020 FY 3/2021 FY 3/2021 Results 2Q Results Plan Revenue 468.8 bil. yen 241.1 bil. yen 486.0 bil. yen Earning power through Operating profit 41.2 bil. yen 31.8 bil. yen 43.5 bil. yen operations Ratio of op
Slide 12: Progress of Medium-Term Business Plan 2021 (2)
11 Mid-term Plan Progress of Medium-Term Business Plan 2021 (2) Domestic Business Overseas Business FY 3/2020 FY 3/2021 FY 3/2021 FY 3/2020 FY 3/2021 FY 3/2021 (bil. yen) (bil. yen) Results 2Q Results Plan Results 2Q Results Plan Revenue 237.8 115.1 242.5 Revenue 65.9 35.5 68.0 Instant Operating The
Slide 13: Review of Five Key Themes
12 Mid-term Plan Review of Five Key Themes FY 3/2021 FY 3/2021 2Q FY 3/2021 Strategic Theme Target Results Estimate Comments 1 ✓ Progress was slightly slow due to the impact of Promoting Up 50% price revisions and a shift to premium products global branding for compared to FY 3/2016 - Up around 30%
Slide 14: Market capitalization
13 Mid-term Plan Market capitalization Market capitalization during the period of the Mid-term Business Plan 2021 Bil. yen 1,100 1,031.3 Market capitalization (excluding treasury shares) 1,000 937.5 900 791.6 800 768.5 700 651.5 642.2 600 571.5 500 400 300 200 100 End of 3/2015 3/2016 3/2017 3/2018
Slide 15: Impact of the Coronavirus Disease 2019 (COVID-19)
14 Mid-term Plan Impact of the Coronavirus Disease 2019 (COVID-19) Change in work style Impact on business performance (FY 3/2021 2Q) Percentage of working from home After Before 4% 95% In the entire NISSIN FOODS Group: Approx. 11.9 bil. yen * NISSIN FOOD PRODUCT’ working from home rate (Excluding f
Slide 16: Initiatives to Sustainable Growth and Enhance Corporate Value
15 Mid-term Plan Initiatives to Sustainable Growth and Enhance Corporate Value ◼ EARTH FOOD CHALLENGE 2030 ◼ List of Award and Recognition Received the “Action for Climate Change, Minister of Environment Award” from the Ministry of Environment. (NISSIN FOODS HOLDINGS) Received the “Minister of Agric
Slide 17: APPENDIX
APPENDIX
Slide 18: FY 3/2021 Domestic Business: Policy and Activities by Segment (1)
As of May 12, 2020 17 FY 3/2021 Domestic Business: Policy and Activities by Segment (1) NISSIN FOOD PRODUCTS Generate profit by solidifying core brands and create food culture by pursuing new added value ➢ Aiming for the fourth consecutive year of CUP NOODLE and the sixth consecutive year of record
Slide 19: FY 3/2021 Domestic Business: Policy and Activities by Segment (2)
As of May 12, 2020 18 FY 3/2021 Domestic Business: Policy and Activities by Segment (2) MYOJO FOODS Build new brands based on proprietary technology, strengthen core brands and contribute to health ➢ Develop new core brands making effective use of proprietary non-fried noodle technologies ➢ Strength
Slide 20: FY 3/2021 Domestic Business: Policy and Activities by Segment (3)
As of May 12, 2020 19 FY 3/2021 Domestic Business: Policy and Activities by Segment (3) Chilled and frozen foods/Confectionery and Beverages ➢ NISSIN CHILLED FOODS ➢ NISSIN FROZEN FOODS Aim to maintain sustainable business growth and create new markets Accelerate creation of a profit-centric busines
Slide 21: FY 3/2021 Overseas Business: Policy and Activities by Segment (1)
As of May 12, 2020 20 FY 3/2021 Overseas Business: Policy and Activities by Segment (1) The Americas ➢ U.S. ➢ Mexico Improve earnings structure and accelerate sales of premium • Offer new flavors under the CUP NOODLES and U.F.O. products • Strengthen brand recognition targeting young consumers • Imp
Slide 22: FY 3/2021 Overseas Business: Policy and Activities by Segment (2)
As of May 12, 2020 21 FY 3/2021 Overseas Business: Policy and Activities by Segment (2) Asia ➢ India ➢ Thailand • Expand sales of pivotal products CUP NOODLES and Top Ramen in the Expand investment for further growth domestic instant noodles business • Expand CUP NOODLES market share • Invest in pro
Slide 23: FY 3/2021 Overseas Business: Policy and Activities by Segment (3)
As of May 12, 2020 22 FY 3/2021 Overseas Business: Policy and Activities by Segment (3) EMEA ➢ Europe Further increase presence in growth markets (i.e. Asian noodles) • Roll out and enhance marketing with the new “Asian Blast” concept • Appeal to consumers with high added-value products (especially
Slide 24: stock shares. The comments and estimates in this document are based on the company’s
Information in this material is not intended to solicit sales or purchase of NISSIN FOODS HOLDINGS stock shares. The comments and estimates in this document are based on the company’s judgment at the time of publication and their accuracy is not guaranteed. They are subject to change without notice
Nissin Foods Holdings — Q2 FY3/2021 Earnings Presentation on 6ix