Itoham Yonekyu Holdings, Inc. · TSE:2296

Itoham Yonekyu — Q2 FY2023 Earnings Presentation

56 slides from Itoham Yonekyu's earnings presentation, Nov 2, 2023

  1. Slide 1: Financial Results for Q2

    Itoham Yonekyu Holdings Inc. Financial Results for Q2 （Apr 1, 2023 – Sep 30, 2023) November 02, 2023

  2. Slide 2: Contents

    Contents 01 Earnings Results - Consolidated Results/Forecast 3-11 - Processed Food Division Results/Forecast 13-17 - Meat Division Results/Forecast 19-23 02 Business Strategy 25-33 03 Supplemental Data 35-42 04 Appendix 44-55 Note: The financial information disclosed by Japanese GAAP and FY2023 show

  3. Slide 3: Consolidated Results for the half-year

    01 Consolidated Results for the half-year ※Round off to second decimal places  Sales increased by 22.1 billion yen (+4.9%) due to higher meat prices and price revisions for processed foods.  Ordinary profit decreased by -3.9 billion yen (-23.9%) due to high raw material costs and logistics costs,

  4. Slide 4: Segment Results of Operations for the half-year

    01 Segment Results of Operations for the half-year ※Round off to second decimal places  In the Processed Food Division： The price revisions have not covered high raw material costs and logistics costs etc, therefore the Ordinary profit decreased by -0.7 billion yen (-16.3%) and it exceeded the prev

  5. Slide 5: Consolidated Results trends for the half-year

    01 Consolidated Results trends for the half-year ※Round off to second decimal places *billion yen Sales Operating profit/margin ratio 横位置：1.6 cm 縦位置：3.2 cm 横位置：13.57 cm 倍率：100% 縦位置：3.2 cm 倍率：100% Ordinary profit/margin ratio Net income/margin ratio 横位置：1.8 cm 横位置：13.57 cm 縦位置：10.9 cm 縦位置：10.9 cm 倍率：

  6. Slide 6: Sales by country and region for the half-year

    01 Sale of each country and region for the half-year to date ※Round off to second decimal places  The mainly Overseas Sales was export sales of beef and sheep meat by ANZCO Foods.  Export sales to Europe are growing due to expansion of WAGYU exports business.  We expect to expand sales to Asia, m

  7. Slide 7: Forecast of Consolidated Financial Results

    01 Forecast of Consolidated Financial Results ※Round off to second decimal places  The full-year forecast remains based on the previous forecast, because the procurement and sales environment for the second half is uncertain, in addition there is an inflationary tendency and weakeing yen also. FY20

  8. Slide 8: Segment Forecast for FY2023 Full-year

    01 Segment Forecast for FY2023 Full-year ※Round off to second decimal places  In the Processed Food Division, it would be assumed that the Ordinary profit increase by +3.4billion yen (+66.7%), because it will be covered high raw material prices and distribution costs by internal improvements and pr

  9. Slide 9: Consolidated Results trends for the full-year

    01 Consolidated Results trends for the full-year ※Round off to second decimal places *billion yen Sales Operating profit/margin ratio 横位置：1.6 cm 縦位置：3.0 cm 横位置：13.0 cm 倍率：100% 縦位置：3.0 cm 倍率：100% Ordinary profit/margin ratio Net income/margin ratio 横位置：1.4 cm 横位置：13.0 cm 縦位置：10.9 cm 縦位置：10.9 cm 倍率：10

  10. Slide 10: Full-year operating forecast (Quarterly Progress)

    01 Full-year operating forecast（Quarterly Progress） ※Round off to second decimal places  The progress of Profits was lower than previous year at this 1st half-year due to increasing raw material costs and distribution costs etc., also decreasing in profit of ANZCO Foods result.  We plan to make a

  11. Slide 11: FY2023 segment change

    01 FY2023 segment change ※Round off to second decimal places  The segment classification was changed due to group re-organization (effective from April 2023).  The previous year's results on this statement are all based on the rearranged figure after the segment change, and it’s different from the

  12. Slide 12: Contents

    Contents 01 Earnings Results - Consolidated Results/Forecast 3-11 - Processed Food Division Results/Forecast 13-17 - Meat Division Results/Forecast 19-23 02 Business Strategy 25-33 03 Supplemental Data 35-42 04 Appendix 44-55 Note: The financial information disclosed by Japanese GAAP and FY2023 show

  13. Slide 13: Processed Food Division Results: half-year to date

    01 Processed Food Division Results : half-year to date ※Round off to second decimal places  In this second quarter, the Ordinary profit decreased by -0.7 billion yen (-16.3%) ,because the effect of price revisions and the other internal improvements in the first half have not covered high raw mater

  14. Slide 14: Processed Food Division Results: half-year analysis

    01 Processed Food Division Results : half-year to date analysis ※Round off to second decimal places  Sales unit prices of Ham and Sausage increased by +4.9%, and Cooked Foods increased by +6.9%.  The price revisions effects(+7.5 billion yen) have exceeded ingredient and utility costs (-7.3 billion

  15. Slide 15: Processed Food Division: Full-year earnings forecast

    01 Processed Food Division : Full-year earnings forecast ※Round off to second decimal places  Although high raw material prices and logistics costs would continue to rise, we assume our internal improvements and price revisions will offset that, and the Ordinary profit is expected to increase by 3.

  16. Slide 16: Processed Food Division: Full-year forecast analysis

    01 Processed Food Division : Full-year earnings forecast analysis ※Round off to second decimal places  We sure to implement the price revision in April and October procedures and expect the +13.5 billion yen effectiveness for the full year.  The raw material costs and distribution costs would be i

  17. Slide 17: Topics (Processed Food Division)

    01 Topics（Processed Food Division） ※Round off to second decimal places  Price revision : We have had certain effectiveness although the raw materials costs and utilities remaining high position.  Mutual sales : We will expand our topline products by utilizing the sales networks of ITOHAM and YONEK

  18. Slide 18: Contents

    Contents 01 Earnings Results - Consolidated Results/Forecast 3-11 - Processed Food Division Results/Forecast 13-17 - Meat Division Results/Forecast 19-23 02 Business Strategy 25-33 03 Supplemental Data 35-42 04 Appendix 44-55 Note: The financial information disclosed by Japanese GAAP and FY2023 show

  19. Slide 19: Meat Division Results: half-year to date

    01 Meat Division Results : half-year to date ※Round off to second decimal places  In the domestic business, the Ordinary profit decrease by -3.1billion yen (-24.4%) , because increasing in profits of the domestic business have not covered decreasing in profits of ANZCO Foods related with lower beef

  20. Slide 20: Meat Division Results: half-year analysis

    01 Meat Division Results : half-year to date analysis ※Round off to second decimal places  In the Domestic business, the profitability have improved by strengthening income managements (unit price factor +2.1 billion yen) etc.  In the Oversea business, the profit decreased by -6.5 billion yen due

  21. Slide 21: Meat Division: Full-year earnings forecast

    01 Meat Division : Full-year earnings forecast ※Round off to second decimal places  It would be assumed that the Ordinary profit decrease by -4.4 billion yen (-19.7%), because increasing in profits of the domestic business have not covered decreasing in profits of ANZCO Foods related with lower bee

  22. Slide 22: Meat Division: Full-year forecast analysis

    01 Meat Division : Full-year earnings forecast analysis ※Round off to second decimal places  In the Domestic business, we assume an increase of “Gross Margin,SG&A” factor +4.3 billion yen due to thoroughly value chain management, mainly for imported chicken and inported beef.  In the Oversea busin

  23. Slide 23: Topics (Meat Division)

    01 Topics（Meat Division） ※Round off to second decimal places  Domestic business : We will build a strong structure by improving profitability through the value chain management.  Oversea business : We recognize the improvement of profitability ,so take it to the next level. ●The progress of Streng

  24. Slide 24: Contents

    Contents 01 Earnings Results - Consolidated Results/Forecast 3-11 - Processed Food Division Results/Forecast 13-17 - Meat Division Results/Forecast 19-23 02 Business Strategy 25-33 03 Supplemental Data 35-42 04 Appendix 44-55 Note: The financial information disclosed by Japanese GAAP and FY2023 show

  25. Slide 25: Business Strategy

    02 Business Strategy  We will be sure to encourage “Expanded Top Line” , “Cost Reduction” and “Commitment to Sustainability” and those are connected to the next mid-term management plan (starting in FY2024). Processed Food Division Meat Division ●Expansion of Frozen products Pick UP ●Expand WAGYU E

  26. Slide 26: Strategies of Processed Food Division: Expanded Frozen Products

    02 Strategies of Processed Food Division（Expanded Top Line） Growth strategies  Since the integration in 2016, we have strengthened Cooked Foods (refrigerated) to meet demand for convenience and time saving.  In the future, we will expand our top line sales for normal temperature products and froze

  27. Slide 27: Consolidation of production bases and logistics bases

    02 Strategies of Processed Food Division（Cost Reduction） Growth strategies  We will accelerate the Logistics Efficiency by carrying out the reorganization of production bases and logistics bases, production consolidation, line automation and production DX initiatives.  We will encourage the furthe

  28. Slide 28: Considering the environment: recycling of food waste

    02 Strategies of Processed Food Division（Commitment to Sustainability） Growth strategies  We will encourage to reduce environmental impact as part of our efforts to “Considering the environment.” ●Recycling of food waste Eco-Project Center（location : Asagiri, Fujinomiya City, Shizuoka Prefecture） T

  29. Slide 29: Considering the environment: packaging materials

    02 Strategies of Processed Food Division（Commitment to Sustainability） Growth strategies  We will encourage to reduce environmental impact as part of our efforts to “Considering the environment.” ●Change to environmentally packaging materials We reduced to use of plastic by downsizing the package f

  30. Slide 30: WAGYU Export Expanded Top Line

    02 Strategies of Meat Division（Expanded Top Line） Growth strategies  We will build the new processing facilities to expand the WAGYU export capacity in addition to the Sankyo Meat which is one of Japanese top-class WAGYU processing facilities for export. We will handle the expansion of oversea dema

  31. Slide 31: Improving efficiency in the meat production business

    02 Strategies of Meat Division（Cost Reduction） Growth strategies  We will strengthen relationships with cooperative farms, particularly in major production areas.  It works to build a strong livestock collection structure and enhance the capability of processing facilities. Then we will encourage

  32. Slide 32: Promoting Sustainable procurement and stable supply

    02 Strategies of Meat Division（Commitment to Sustainability） Growth strategies  Ｗe will work together with our suppliers to build a sustainable supply chain. It is based on the same recognition of importance for responsible procurement activities through the whole supply chain. ●Initiatives for Ani

  33. Slide 33: Promoting Sustainable procurement and stable supply

    02 Strategies of Meat Division（Commitment to Sustainability） Growth strategies  Ｗe will work together with our suppliers to build a sustainable supply chain. It is based on the same recognition of importance for responsible procurement activities through the supply chain. ● Conduct supplier surveys

  34. Slide 34: Contents

    Contents 01 Earnings Results - Consolidated Results/Forecast 3-11 - Processed Food Division Results/Forecast 13-17 - Meat Division Results/Forecast 19-23 02 Business Strategy 25-33 03 Supplemental Data 35-42 04 Appendix 44-55 Note: The financial information disclosed by Japanese GAAP and FY2023 show

  35. Slide 35: Supplemental Data: Profit/Loss

    03 Supplemental Data : Profit/Loss ※Round off to second decimal places Year Actual Sale of each country and region billion yen billion yen FY2022 FY2023 FY2022 FY2023 half-year half-year Change half-year half-year Change Sales 448.0 470.1 +22.1 Sales 448.0 470.1 +22.1 COGS 380.4 405.2 +24.8 横位置：1.1

  36. Slide 36: Supplemental Data: S,G & A Expenses / Non-operational G/L

    03 Supplemental Data : S,G & A Expenses / Non-operational G/L ※Round off to second decimal places S,G & A Expenses Non-operational Gain/Loss billion yen billion yen FY2022 FY2023 FY2022 FY2023 half-year half-year Change half-year half-year Change Non-Operational G/L 1.0 1.7 +0.7 Sales 448.0 470.1 +2

  37. Slide 37: Supplemental Data: Balance Sheet

    03 Supplemental Data : Balance Sheet ※Round off to second decimal places billion yen FY2022 FY2023 FY2022 FY2023 Change Change Year end half-year Year end half-year Current Assets 256.5 293.6 +37.1 Total Liabilities 167.5 203.8 +36.2 Cash and Term Deposits 22.7 25.2 +2.5 Current Liabilities 152.9 18

  38. Slide 38: Supplemental Data: Cash flow statement

    03 Supplemental Data : Cash flow statement ※Round off to second decimal places billion yen FY2022 FY2023 half-year half-year Change ①Cash Flow from Operation -17.2 -4.9 +12.3 横位置：1.0 cm Income Before Taxes 16.0 11.7 -4.4 横位置：14.2 cm 縦位置：2.8 cm 縦位置：3.2 cm Depreciation 倍率：100% 5.7 5.9 +0.2 倍率：100% Cha

  39. Slide 39: Supplemental Data: Itemized Sales

    03 Supplemental Data : Itemized Sales Itemized Sales billion yen Consolidated Processed Food Div. Meat Div. Others FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 half-year half-year change half-year half-year change half-year half-year change half-year half-year change Sales 448.0 470.1 +22

  40. Slide 40: Quarterly earnings trends by segment

    03 Supplemental Data ： Quarterly earnings trends by segment billion yen Q1 Q2 Apr - Jun Jul - Sep FY2023 FY2022 FY2023 FY2022 Change Change results results results results Sales 227.6 212.3 +15.2 242.6 235.7 +6.9 Operating profit 5.3 7.1 -1.8 5.3 8.0 -2.8 Consolidated Operating profit margin % 2.3 3

  41. Slide 41: FY2023 Full-year earnings forecast details

    03 Supplemental Data ： FY2023 Full-year earnings forecast details billion yen H1 H2 Year FY2023 FY2022 Last FY2023 FY2022 Last FY2023 FY2022 Last Change Chage Change Chage Change Chage F'cast results F'cast F'cast results F'cast F'cast results F'cast Rev 2-Nov Rev 3-Aug Rev 2-Nov Rev 3-Aug Rev 2-Nov

  42. Slide 42: Full-year earnings forecast profit change analysis trends

    03 Supplemental Data ： FY2023 Full-year earnings forecast - profit change analysis trends billion yen Processed Food Div. Ｑ1 Ｑ2 Ｈ1 Ｈ2 Year results Rev 3-Aug. results Rev 3-Aug. results Rev 3-Aug. Rev 2-Nov. Rev 3-Aug. Rev 2-Nov. FY2022 Ordinary profit 2.6 1.6 1.6 4.2 4.2 0.9 0.9 5.1 5.1 Sales Volume

  43. Slide 43: Contents

    Contents 01 Earnings Results - Consolidated Results/Forecast 3-11 - Processed Food Division Results/Forecast 13-17 - Meat Division Results/Forecast 19-23 02 Business Strategy 25-33 03 Supplemental Data 35-42 04 Appendix 44-55 Note: The financial information disclosed by Japanese GAAP and FY2023 show

  44. Slide 44: Appendix: Overseas Markets

    04 Appendix ： Overseas Markets Pork Carcass - Denmark Picnic - USA 横位置：0.80 cm 横位置：13.00 cm 縦位置：2.50 cm 縦位置：2.50 cm 倍率：100% 倍率：100% Pork Bellies - USA Loin - USA 横位置：0.80 cm 縦位置：10.20 cm 横位置：13.00 cm 倍率：100% 縦位置：10.20 cm 倍率：100% 44 ITOHAM YONEKYU HOLDINGS INC. 2023

  45. Slide 45: Appendix: CPI

    04 Appendix : CPI Beef Chicken 横位置：12.50 cm 横位置：0.5 cm 縦位置：2.5 cm 縦位置：2.5 cm 倍率：100% 倍率：100% Pork Processed Meat 横位置：0.5 cm 縦位置：10.60 cm 横位置：12.50 cm 倍率：100% 縦位置：10.60 cm 倍率：100% Date：Ministry of Internal Affairs and Communications 45 ITOHAM YONEKYU HOLDINGS INC. 2023

  46. Slide 46: Appendix: Ham & Sausage Supply

    04 Appendix : Ham & Sausage Supply Domestic Production Imports 横位置：2.00 cm 横位置：12.9 cm 縦位置：2.50 cm 縦位置：2.50 cm 倍率：100% 倍率：100% Apr.-Aug. (ton) 【Domestic】 Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Year FY2022 225,548 ton Domestic FY2022 Volume 47,459 43,605 45,445 45,577 43,462 44,1

  47. Slide 47: Appendix: Ham/Sausage domestic market share

    04 Appendix : Ham/Sausage domestic market share ham/sausage domestic market ham/sausage domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍率：104% Apr. May Jun. Jul. Aug. Se

  48. Slide 48: Appendix: Wiener domestic market share

    04 Appendix : Wiener domestic market share Wiener domestic market Wiener domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍率：104% Apr. May Jun. Jul. Aug. Sep. Oct. Nov. De

  49. Slide 49: Appendix: Slice pack of ham, bacon, etc. domestic market share

    04 Appendix : Slice pack of ham, bacon, etc. domestic market share Slice pack of ham, bacon, etc. domestic market Slice pack of ham, bacon, etc. domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3

  50. Slide 50: Appendix: Pizza/Snacks domestic market share

    04 Appendix : Pizza/Snacks domestic market share Pizza/Snacks domestic market Pizza/Snacks domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍率：104% Apr. May Jun. Jul. Aug.

  51. Slide 51: Appendix: Hamburger steak/Meatball domestic market share

    04 Appendix : Hamburger steak/Meatball domestic market share Hamburger steak/Meatball domestic market Hamburger steak/Meatball domestic market Value per 100 monitors year-on-year Average price year-on-year Our share 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：

  52. Slide 52: Appendix: Processed chicken food domestic market share

    04 Appendix : Processed chicken food domestic market share Processed chicken food domestic market Processed chicken food domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍

  53. Slide 53: Appendix: Marketed Volume/Ending Stock/Market Price (Beef)

    04 Appendix : Marketed Volume/Ending Stock/Market Price (Beef) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products 横位置：1.30 cm

  54. Slide 54: Appendix: Marketed Volume/Ending Stock/Market Price (Pork)

    04 Appendix : Marketed Volume/Ending Stock/Market Price (Pork) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products 横位置：1.30 cm

  55. Slide 55: Appendix: Marketed Volume/Ending Stock/Market Price (Chicken)

    04 Appendix : Marketed Volume/Ending Stock/Market Price (Chicken) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products ※bone-in

  56. Slide 56: Contact Information

    Contact Information ALT ITO Bldg. 1-6-21, MITA, MEGURO-KU, TOKYO , 153- 8587, JAPAN ITOHAM YONEKYU HOLDINGS INC. Public & Investor Relations Office TEL : +81-3-5723-6889 You can also contact us from the company website. https://www.itoham-yonekyu-holdings.com The current plans, forecasts, strategies

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