Itoham Yonekyu Holdings, Inc. · TSE:2296

Itoham Yonekyu — H1 FY2022 Earnings Presentation

34 slides from Itoham Yonekyu's earnings presentation, Nov 8, 2022

1. Slide 1: Financial Results for Q2 of FY2022 (Ending March 31, 2023)

   Itoham Yonekyu Holdings Inc. Financial Results for Q2 of FY2022 (Ending March 31, 2023) November 08, 2022 ITOHAM YONEKYU HOLDINGS INC. 2022

2. Slide 2: Table of Contents

   Table of Contents 01 Earnings Results 02 Supplemental Data 03 Appendix 1 ITOHAM YONEKYU HOLDINGS INC. 2022

3. Slide 3: Rearrangement of segment

   01 Rearrangement of segment ※Round off to second decimal places  From this fiscal year, the segment was changed from the production category to the organizational unit.  From this fiscal year, segment indicative profit was changed from operating profit to ordinary profit.  The previous year's res

4. Slide 4: Consolidated Results of Operations

   01 Consolidated Results of Operations ※Round off to second decimal places  Sales increased by 7.2% due to rising meat prices and price change for processed foods.  Ordinary profit decreased by 2.3% due to the higher raw material prices and decreasing sales volume, despite the significant contribut

5. Slide 5: Segment Results of Operations

   01 Segment Results of Operations ※Round off to second decimal places  Ordinary profit of Processed Food Division decreased by 36.1%, because the price change have not covered the risen raw material costs and utility costs.  Ordinary profit of Meat Division increased by 24.3%, because ANZCO Foods k

6. Slide 6: Processed Food Division Results: Half-year Profit analysis

   01 Processed Food Division Results : Harf-year Profit analysis ※Round off to second decimal places  Sales unit price increased by Ham and Sausage +3.6%, and Cooked Processed Food +2.4%.  Raw material / utility cost (-5.4 billion yen) have exceeded the price change amount (+4.2 billion yen). Ordina

7. Slide 7: Meat Division Results: Half-year Profit analysis

   01 Meat Division Results : Harf-year Profit analysis ※Round off to second decimal places  ANZCO Foods has kept the favorable performance as a background of worldwide high meat price (+4.6 billion yen increase in profit) .  Income from the production business decreased due to the rise in compound f

8. Slide 8: Forecast of Consolidated Financial Results

   01 Forecast of Consolidated Financial Results ※Round off to second decimal places  Ordinary profit is expected to go down by 16.1% due to the impact of increased raw material costs for processed foods and utility costs.  We will implement the internal improvement and re-price change to accumulate

9. Slide 9: Segment Forecast: FY2022 Full-year

   01 Segment Forecast：FY2022 Full-year ※Round off to second decimal places  In the Processed Food Division, the risen in raw material prices would be expected to cause a significant decrease in ordinary profit by 40.0%.  In the Meats Division, ANZCO Foods has kept favorite result, and it is expected

10. Slide 10: Processed Food Division: Full-year earnings forecast

    01 Processed Food Division : Full-year earnings forecast ※Round off to second decimal places  Scheduled to conduct the price change again from October.  Due to the weakening of the yen, the cost of raw materials and utilities is expected to increase by 14.0 billion yen (cost increase of 1.5 billio

11. Slide 11: Meat Division: Full-year earnings forecast

    01 Meat Division : Full-year earnings forecast ※Round off to second decimal places  ANZCO Foods would continue to perform well and expects an increase in profit of +6.0 billion yen.  In the domestic business, due to the effects of declining demand and rising purchase prices, we expect a 1.0 billio

12. Slide 12: Full-year operating forecast (Progress)

    01 Full-year operating forecast（Progress） ※Round off to second decimal places  Ordinary profit has made a good progress rate of 67%, because ANZCO Foods performance is heavily weighted in the half-year. Consolidated ※billion yen 1Q（Apr.-Jun.） 2Q（Jul.-Sep.） Reference: Progress of ordinary profit Ful

13. Slide 13: Table of Contents

    Table of Contents 01 Earnings Results 02 Supplemental Data 03 Appendix 12 ITOHAM YONEKYU HOLDINGS INC. 2022

14. Slide 14: Supplemental Data: Profit/Loss

    02 Supplemental Data : Profit/Loss ※Round off to second decimal places Year Actual Sale of each country and region *Previous year *Reclassed *Reclassed Account billion yen published figures Account billion yen FY2021 FY2022 FY2021 FY2021 FY2022 half-year half-year Change half-year half-year half-yea

15. Slide 15: Supplemental Data: S,G & A Expenses / Non-operational G/L

    02 Supplemental Data : S,G & A Expenses / Non-operational G/L ※Round off to second decimal places S,G & A Expenses Non-operational Gain/Loss *Previous year *Reclassed Account billion yen published figures billion yen FY2021 FY2022 FY2021 FY2021 FY2022 half-year half-year Change half-year half-year h

16. Slide 16: Supplemental Data: Balance Sheet

    02 Supplemental Data : Balance Sheet ※Round off to second decimal places billion yen FY2021 FY2022 FY2021 FY2022 Change Change Year end 2Q end Year end 2Q end Current Assets 243.4 268.9 +25.5 Total Liabilities 150.4 180.5 +30.1 Cash and Term Deposits 48.0 20.7 -27.3 Current Liabilities 126.5 154.9 +

17. Slide 17: Supplemental Data: Cash flow statement

    02 Supplemental Data : Cash flow statement ※Round off to second decimal places billion yen FY2021 FY2022 35 CF operation half-year half-year Change 30 25 CF investments ①Cash Flow from Operation -9.7 -17.2 -7.5 20 FCF 横位置：1.0 cm 15 Amount (billion yen) Income Before Taxes 16.9 16.0 -0.9 横位置：14.2 cm

18. Slide 18: Supplemental Data: Itemized Sales

    02 Supplemental Data : Itemized Sales ※Round off to second decimal places Itemized Sales billion yen Consolidated Processed Food Div. Meat Div. Others FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 half-year half-year change half-year half-year change half-year half-year change half-year ha

19. Slide 19: Supplemental Data: Full-year earnings forecast details

    02 Supplemental Data ： Full-year earnings forecast details ※Round off to second decimal places billion yen, % First Half Scond Half Year 2022 2021 Last 2022 2021 Last 2022 2021 Last Change Chage Change Chage Change Chage results results F'cast F'cast results F'cast F'cast results F'cast Rev 8-Nov Re

20. Slide 20: Supplemental Data: Full-year earnings forecast profit factors change

    02 Supplemental Data ： Full-year earnings forecast profit factors change ※Round off to second decimal places billion yen Processed Food Div. First Half Scond Half Year Rev 9-May. Rev 3-Aug. results Rev 9-May. Rev 3-Aug. Rev 3-Nov. Rev 9-May. Rev 3-Aug. Rev 3-Nov. FY2021 Ordinary profit 7.2 7.2 7.2 5

21. Slide 21: Table of Contents

    Table of Contents 01 Earnings Results 02 Supplemental Data 03 Appendix 20 ITOHAM YONEKYU HOLDINGS INC. 2022

22. Slide 22: Appendix: Overseas Markets

    03 Appendix : Overseas Markets Pork Carcass - Denmark Picnic - USA （DKK/kg） （USD/lb） 15.00 1.90 2019 2019 14.00 1.70 2020 2020 13.00 2021 2021 1.50 2022 2022 12.00 1.30 横位置：0.80 cm 横位置：13.00 cm 11.00 縦位置：2.50 cm 1.10 縦位置：2.50 cm 10.00 倍率：100% 0.90 倍率：100% 9.00 0.70 8.00 0.50 7.00 0.30 11 13 15 17 19

23. Slide 23: CPI and food price trends

    03 Appendix : CPI Beef Chicken +20.0 +20.0 +18.0 Food +18.0 Food +16.0 +16.0 +14.0 Beef (domestic) +14.0 Chicken vs. same period last year（％） vs. same period last year（％） +12.0 Beef (imported) +12.0 +10.0 +10.0 +8.0 +8.0 +6.0 +6.0 +4.0 +4.0 +2.0 +2.0 横位置：12.50 cm +0.0 横位置：0.5 cm +0.0 -2.0 -2.0 縦位置：2

24. Slide 24: Ham & Sausage Supply

    03 Appendix : Ham & Sausage Supply Domestic Production Imports 55,000 5,000 FY2020 FY2021 4,500 50,000 FY2022 4,000 Domestic (ton) 45,000 Import (ton) 3,500 横位置：2.00 cm 横位置：12.9 cm 縦位置：2.50 cm 縦位置：2.50 cm 3,000 40,000 倍率：100% 倍率：100% FY2020 2,500 35,000 FY2021 FY2022 2,000 30,000 1,500 (ton) Apr. Ma

25. Slide 25: Ham/Sausage domestic market share

    03 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 (%) (%) (%) 24.0 110.0 110.0 105.0 105.0 横位置：17.10 cm 20.0 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 100.0 縦位置：3.00 c

26. Slide 26: Wiener domestic market share

    03 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 (%) (%) (%) 24.0 110.0 110.0 105.0 105.0 横位置：17.10 cm 20.0 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 100.0 縦位置：3.00 cm 100.0 倍率：104%

27. Slide 27: Slice pack of ham, bacon, etc. domestic market share

    03 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 (%) (%) (%) 24.0 110.0 110.0 105.0 105.0 横位置：17.10 cm 20.0 横位置：1.0

28. Slide 28: Pizza/Snacks domestic market share

    03 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 (%) (%) (%) 42.0 115.0 110.0 FY2021 110.0 105.0 FY2022 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 34.0 縦位置：3.00 cm

29. Slide 29: Hamburger steak/Meatball domestic market share

    03 Appendix : Hamburger steak/Meatball domestic market share Hamburger steak/Meatball domestic market Hamburger steak/Meatball domestic market Our share Value per 100 monitors year-on-year Average price year-on-year (%) (%) (%) 24.0 115.0 110.0 110.0 105.0 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.

30. Slide 30: Cooked chicken food domestic market share

    03 Appendix : Cooked 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 (%) (%) (%) 30.0 115.0 110.0 110.0 105.0 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 24.

31. Slide 31: Marketed Volume/Ending Stock/Market Price (Beef)

    03 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 70,000 70,00

32. Slide 32: Marketed Volume/Ending Stock/Market Price (Pork)

    03 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 100,000 100,

33. Slide 33: Marketed Volume/Ending Stock/Market Price (Chicken)

    03 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 180,000 1

34. Slide 34: 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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