Nissin Foods Holdings Co., Ltd. · TSE:2897

Nissin Foods — 1H FY2018 Earnings Presentation

32 slides from Nissin Foods's earnings presentation, Nov 14, 2017

  1. Slide 1: Consolidated Results for the First Half of the Fiscal Year ending March 31, 2018

    Consolidated Results for the First Half of the Fiscal Year ending March 31, 2018 (1H of FY2018) Announced on November 10, 2017 This material was released on November 14, 2017 for the results briefing TSE 2897

  2. Slide 2: Overview of Financial Results for the First Half of FY2018

    Overview of Financial Results for the First Half of FY2018 Director, CFO, and Managing Executive Officer Yukio Yokoyama

  3. Slide 3: Executive Summary

    2 Executive Summary FY2018 Build firmer foundation for sustained growth, while targeting four-year consecutive record-high sales Mgmt. Domestic: Enhancement of earning power and investment for future mgmt. base Policy Overseas: Significant increase in sales and increase in OP in each region based on

  4. Slide 4: FY2018 1st Half Results: Summary

    3 FY2018 1st Half Results: Summary FY2018 FY2017 (bil. yen) 1H Results YoY Change YoY Change (%) 1H Results Sales 247.3 +11.5 +4.9% 235.8 Operating income 15.3 +3.6 +30.7% 11.7 Adjusted operating income ＊ 15.0 +1.1 +8.0% 13.9 Ordinary income 19.0 +5.2 +38.0% 13.8 Net income attributable to owners of

  5. Slide 5: FY2018 1st Half Results: Sales Results by Segment

    4 FY2018 1st Half Results: Sales Results by Segment FY2018 FY2017 (bil. yen) 1H Results YoY Change YoY Change (%) 1H Results Instant Noodles 127.8 +2.5 +2.0% 125.3 NISSIN FOOD PRODUCTS 107.9 +2.7 +2.5% 105.2 MYOJO FOODS 19.9 -0.2 -0.9% 20.1 Chilled and frozen business 32.0 +1.4 +4.7% 30.6 Confection

  6. Slide 6: FY2018 1st Half Results: Sales Contribution by Segment

    5 FY2018 1st Half Results: Sales Contribution by Segment (bil. yen) Segment Impact Major Factors Cup-type (+3%): Increase from the high level of +5% year on year in the previous FY2017 Sales 235.8 NISSIN fiscal year thanks to new products such as CUP NOODLE NICE, as well as the launch of renewed pro

  7. Slide 7: FY2018 1st Half Results: Operating Income Results by Segment

    6 FY2018 1st Half Results: Operating Income Results by Segment FY2018 FY2017 (bil. yen) 1H Results YoY Change YoY Change (%) 1H Results Instant Noodles 12.9 +1.4 +12.1% 11.5 NISSIN FOOD PRODUCTS 11.8 +1.1 +10.1% 10.8 MYOJO FOODS 1.0 +0.3 +42.6% 0.7 Chilled and frozen business 1.2 +0.1 +11.5% 1.1 Con

  8. Slide 8: FY2018 1st Half Results: Operating Income Contribution by Segment

    7 FY2018 1st Half Results: Operating Income Contribution by Segment (bil. yen) Segment Impact Major Factors FY2017 Operating income 11.7 NISSIN +: Increased sales, lower CoGS ratio, reduced advertising expenses -: Higher promotional cost to sales ratio (reactionary increase following the FOOD +1.1 K

  9. Slide 9: FY2018 1st Half: Analysis of Operating Income: Consolidated

    8 FY2018 1st Half: Analysis of Operating Income: Consolidated Operating Income 15.3 bil yen(vs. FY2017: +3.6 bil yen) Decrease factors Increase factors (bil. yen) Increase/decrease of marginal profit A：Sales increase 2.7 B：CoGS ratio -0.1 C：Promotional expense ratio 0.2 D：Distribution cost ratio -0.

  10. Slide 10: Non-operating Income/Expenses and Extraordinary Gain/Loss

    9 Non-operating Income/Expenses and Extraordinary Gain/Loss Figures in parentheses are the results Major reasons of the FY ended Mar. 31, 2016 （bil. yen） （bil. yen）  Non-operating income 4.1（3.4） Operating income 15.3 • Interest income 0.5（0.4） • Dividend income 0.8（0.9） Non-operating • Gain from s

  11. Slide 11: Forecasts for the Current Fiscal Year

    10 Forecasts for the Current Fiscal Year Steadily meet targets as initially planned and pave the way for growth in the third year. FY2018 FY2017 （bil. yen） YoY Change Forecast YoY Change (%) Results  FY2018 full-year results forecast Sales 520.0 +24.3 +4.9% 495.7 • FY2018 full-year forecasts remain

  12. Slide 12: Medium-Term Business Plan 2021 Interim Report in the Second Year

    Medium-Term Business Plan 2021 Interim Report in the Second Year Representative Director, President and CEO Koki Ando

  13. Slide 13: Mid-term Plan KPI in the Medium-Term Business Plan 2021

    12 Mid-term Plan KPI in the Medium-Term Business Plan 2021 Setting out KPI based on “earning power through operations” and “value in capital markets” (market capitalization), as requirements for “recognition as a global company” FY2016 FY2017 FY2021 Results Reference Targets J-GAAP J-GAAP IFRS stand

  14. Slide 14: Medium-Term Business Plan Key Strategy Themes to Achieve Targets

    13 Medium-Term Business Plan Key Strategy Themes to Achieve Targets • Focusing on five key themes in pursuit of business profitability Domestic Overseas 1 Next Promoting Instant noodles stage Global Branding 3 2 Focusing on priority Business Laying stronger overseas locations foundations for our dom

  15. Slide 15: Creation of a Market for Cup-Type Instant Noodle Products (1): Promoting Global Branding

    Strategies to Achieve the Medium-Term Business Plan: 14 Creation of a Market for Cup-Type Instant Noodle Products (1) Promoting Global Branding USA CUP NOODLES NEW NEW (10 Flavors) CUP NOODLES CUP NOODLES 2016.8～ Very Veggie SEAFOOD ＆ PP cup Shift to paper cup (3Flavors) CURRY Europe around $1 $1.5～

  16. Slide 16: Strategies to Achieve the Medium-Term Business Plan: Situation in Brazil

    15 Focusing on priority overseas locations Strategies to Achieve the Medium-Term Business Plan: Situation in Brazil  Macro environment * Source: The Central Bank of Brazil, Bloomberg, IMF and World Bank 2014 2015 2016 2017 2018E  Market environment June → Sept. • More than 120,000 retailers have c

  17. Slide 17: Efforts of Bag-Type Noodle Products of Nissin Food Products

    Strategies to Achieve the Medium-Term Business Plan: 16 Laying stronger Efforts of Bag-Type Noodle Products of Nissin Food Products foundations for our domestic profit base  Trends in total production volume of instant noodles (100 mil. servings) 合計 Total 袋めん Bag-type カップめん Cup-Type 55.3 54.8 56.5

  18. Slide 18: Growth of Frozen Foods Business

    17 Strategies to Achieve the Medium-Term Business Plan: Growth of Frozen Foods Business Establishing a second pillar that generates revenue and profits  Changes in the market environment (sales method) Source: Nissin Proper labelling of sales prices of frozen foods by the  Trends in the market for

  19. Slide 19: Developing and Strengthening Human Resources for Global Management

    5 18 Developing and Strengthening Strategies to Achieve the Medium-Term Business Plan Human Resources for Global Management  Promote local personnel to senior NISSIN FOODS (U.S.A.) CO., INC. executives in major overseas areas President: Al Multari Mar. 2015 - • Build local area-based strategies bas

  20. Slide 20: ESG Management Considering ESG

    Others Strategies to Achieve the Medium-Term Business Plan: 19 ESG Management Considering ESG  Enactment of Nissin Group Policy on Sustainable Procurement  RSPO Membership By attaining membership in RSPO, NISSIN FOOD PRODUCTS CO., The Nissin Foods Group adopted the Basic Policy on Green LTD. aims

  21. Slide 21: NISSIN FOODS HOLDINGS CO., LTD.

    NISSIN FOODS HOLDINGS CO., LTD.

  22. Slide 22: APPENDIX

    APPENDIX

  23. Slide 23: FY2018 Domestic Businesses: Qualitative Information by Segment - 1

    22 FY2018 Domestic Businesses: Qualitative Information by Segment - 1 NISSIN FOOD PRODUCTS Generate cash and enhance profitability 1st Half Bag-type: YoY -5%; Cup-type: YoY +3%; Products other than instant noodles: YoY +62%; Total: YoY +3% Profit growth achieved on strong  Health conscious products

  24. Slide 24: FY2018 Domestic Businesses: Qualitative Information by Segment - 2

    23 FY2018 Domestic Businesses: Qualitative Information by Segment - 2 MYOJO FOODS Enhance main brands and employ a proposal-type marketing strategy 1st Half Bag-type: YoY +3%; Cup-type: YoY -2%; Total: YoY -1% 2nd Half Management Policy  Strong enhancement of main brands  Strong enhancement of mai

  25. Slide 25: FY2018 Domestic Businesses: Qualitative Information by Segment - 3

    24 FY2018 Domestic Businesses: Qualitative Information by Segment - 3 Focus on growth categories, enhance strategic products and develop Nissin Frozen Foods new sales channels Market Trend • The market for spaghetti products will maintain 2nd Half Management Policy a strong growth rate this year • T

  26. Slide 26: FY2018 Domestic Businesses: Qualitative Information by Segment - 4

    25 FY2018 Domestic Businesses: Qualitative Information by Segment - 4 Bonchi Enhance business in the Kanto area • The overall confectionery market (except for Market Trend chocolates) remained weak • The rice-based snack market also remained weak Aji Karuta Sales: -11%; OP: Decreased Six pack seafoo

  27. Slide 27: FY2018 Overseas Businesses: Qualitative Information by Segment - 1

    26 FY2018 Overseas Businesses: Qualitative Information by Segment -1 The Americas Cater to changes in the market and enhance the CUP NOODLES strategy in Brazil 1st Half 2nd Half Management Policy  U.S. Sales: YoY +6%; Operating loss  U.S. • Sales growth achieved by successful product renewal for “

  28. Slide 28: FY2018 Overseas Businesses: Qualitative Information by Segment - 2

    27 FY2018 Overseas Businesses: Qualitative Information by Segment -2 Asia Quick recovery of India business, focus on growth segments and alliance with Mitsubishi Corp. 1st Half 2nd Half Management Policy  India Sales: YoY Decreased; Operating loss: YoY Worsened  India • Suffered a reactionary plun

  29. Slide 29: Analysis of Operating Income: Consolidated (Domestic/Overseas)

    28 Analysis of Operating Income: Consolidated (Domestic/Overseas) YoY change Domestic Decrease factors Increase factors （bil. yen）  Change of CoGS ratio 1.0 ＋ Lower raw materials cost（+1.1） （Domestic） Increase/decrease of marginal profit A：Sales increase  Promotional expense ratio （Overseas） 1.6 －

  30. Slide 30: Nissin Group Policy on Sustainable Procurement

    29 Nissin Group Policy on Sustainable Procurement 1. Food Security/Food Safety • Analysis and testing of raw Confidence in food safety leads to a pleasant eating experience. materials The Nissin Foods Group has redoubled its efforts in food safety, which the Group has considered as a • Implementing

  31. Slide 31: NISSIN FOODS HOLDINGS CO., LTD.

    NISSIN FOODS HOLDINGS CO., LTD.

  32. Slide 32: (Reference) Notes for this Material

    31 （Reference） Notes for this Material  This presentation material is available in the Financial Statements section of our IR website in PDF format. URL: https://www.nissin.com/en_jp/ir/library/materials/  The amounts in this material are rounded to the nearest 100 million yen; totals may not agre

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