Morinaga Milk Industry Co., Ltd. · TSE:2264
Morinaga Milk Industry — FY2025 Earnings Presentation
48 slides from Morinaga Milk Industry's earnings presentation, May 14, 2025
Slide 1: Presentation on Financial Results for FYE March 2025 and Medium-Term Business Plan 2025-2028
Morinaga Milk Industry Co., Ltd. Presentation on Financial Results for the Fiscal Year Ended March 31, 2025, and Medium-Term Business Plan 2025–2028 May 14, 2025 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results
Slide 2: Summary of Today's Presentation
Preamble Summary of Today’s Presentation ◆ FYE March 2025: net sales ¥561.2 billion (+2.6% YoY), operating profit ¥29.7 billion (+¥1.8 billion YoY) ・4Q saw profits increase in a continuation of 3Q, driven by contribution of Global Business and more efficient use of sales promotion expenses, and lead
Slide 3: Invest actively to reflect positioning as growth driver
Following the announcement on April 15, 2025, of the recording of impairment losses, etc. on overseas subsidiaries ■Medium term: Propel business growth through active investments in probiotics and formula milk ■Long term: Explore next-generation growth drivers while working to rebuild structures in
Slide 4: 1. Morinaga Milk Group Medium-Term Business Plan 2025-2028
1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results 3. Outlook of Financial Results for the Year Ending March 2026 Copyrig
Slide 5: Review of previous medium-term plan numerical targets
5 First, let me review the numerical targets of the previous medium-term business plan. It started with a situation where we could not foresee the future due to the rapid changes in the external environment and a large cost increase phase in the spring of 2022. Each of the management indicators coul
Slide 6: Review of main themes of previous plan
6 Next is a review of the main themes. We have positioned five domains of wellness. In terms of the category, we were able to expand generally as planned by focusing on positioning and awareness within the company. Although we did not reach our initial plan for probiotics, sales to the Chinese marke
Slide 7: Vision and three basic policies
7 The next four years will be a period of finishing touches toward achieving our 10- year vision. We have been thinking about what we should work on in order to move one step further toward our ideal state. In order to compete in the domestic market, where a difficult environment is expected to cont
Slide 8: Merihari concept and issues of previous plan
8 In considering the content of the new plan, we have examined the contents of the previous medium-term business plan and the issues to be addressed. As I mentioned, the concept that we emphasized in formulating this plan is the word “Merihari.” This is a concept that we hope to establish not only i
Slide 9: Numerical targets of the 10-year vision
9 We aim to achieve all of the numerical targets set forth in our 10-year vision. All of these targets are very high, but we have set them because we are confident of their potential, especially in the growth areas I will explain in the next section. We intend to achieve this goal at all costs. In t
Slide 10: Growth strategy: business categories by role
10 Now, here is the first of our basic policies. I would like to explain our growth strategy. In the previous medium-term business plan, the four businesses were classified according to the value they provide, but this time we have clarified the position and role of each category within the company,
Slide 11: Allocation of investments and personnel
11 Here you can see the allocation of investments and personnel. The pie chart on the left shows the investment allocation for the three years up to the previous term, and the pie chart on the right shows the investment allocation for the current four years. While we will continue to make the necess
Slide 12: Sales and operating profit by segment
12 This is a breakdown of sales and operating profit by segments. The four categories we have positioned as growth areas are yogurt, ice cream, probiotics, and overseas formula milk. These are our most profitable categories. By concentrating management resources in these areas, we aim to both expand
Slide 13: Growth area: yogurt
13 I will now explain our policies for each of the four growth areas. First, yogurt. In yogurt we will concentrate resources on “Bifidus” and “PARTHENO.” We aim to increase sales of the “Bifidus” brand by 20% in the final year by strengthening publicity of bifidobacteria, which is one of our strengt
Slide 14: Growth area: ice cream
14 Next, ice cream. We will take on challenges with a view to capturing the top share in the domestic market and expanding exports. To this end, we will develop products with a sense of speed by being conscious of the diversification of channel areas from the product design stage, regardless of whet
Slide 15: Growth area: probiotics
15 Next is probiotics. Although we handle a variety of functional materials, we aim to double our sales by concentrating our resources on bifidobacteria, which has a unique presence in the world. In order to focus on probiotics, this April we organized the sales organization of probiotics into a hea
Slide 16: Growth area: overseas formula milk
16 Finally, overseas formula milk. The category of formula milk is compatible with bifidobacteria. First, by strengthening our R&D resources, we will increase the speed of product development in areas where we can take advantage of our position as a front runner and expand our product lineup. Increa
Slide 17: Structural reforms: organization restructuring
17 Next, I will explain the second basic policy, structural reforms. First is restructuring of the organization. The Marketing Division controls the various functions that make up the value chain and will play a central role in coordinating the allocation of resources, including milk resources, and
Slide 18: Domestic production system
18 Next, I will explain our domestic production system. First, we will expand our facilities with a focus on yogurt and ice cream, where there have been sales opportunity losses and lost opportunities. The production line at the Kobe Plant just started operation in April. In addition, we have decide
Slide 19: Culture reforms: capital profitability and ROIC
19 I will now explain the third basic policy, culture reforms. The first step is to strengthen efforts to improve capital profitability. ROIC will be introduced as a new management indicator. To achieve the target of 7%, we will further raise awareness of the cost of capital throughout the company.
Slide 20: Human capital policy
20 Next is our policy on human capital. We believe that it is important to improve engagement by implementing these measures for the sustainable growth of our company. Regarding professional skills, we believe that each individual should not be content with merely possessing specialized knowledge, b
Slide 21: Cash allocation and shareholder return policy
21 Finally, our cash allocation and shareholder return policy. The approach to cash inflow and cash outflow is described in this diagram. We intend to utilize interest-bearing debt appropriately toward an optimal capital structure. The company plans to make a strategic investment of JPY70.0 billion.
Slide 22: Revision of Sustainability Medium- to Long-Term Plan
Revision of Sustainability Medium- to Long-Term Plan Copyright©Morinaga Milk Industry Co.,Ltd.All Rights Reserved. 22 Lastly, along with the medium-term management plan we have also updated the medium- to long-term sustainability plan, and I would like to give a brief explanation focusing on key poi
Slide 23: Sustainability plan themes and governance changes
Three years have passed since plan was formulated. Strengthened governance structure, revised targets to reflect changes in internal/external environment 1) Strengthened sustainability/governance structures Philosophy-activity system diagram ・Changed positioning of current Sustainability Committee a
Slide 24: 2. Overview of FYE March 2025 Financial Results
2. Overview of FYE March 2025 Financial Results 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results 3. Outlook of Financial Results for the Year Ending March 2026 Copyright©Morinaga Milk Industry Co.,Ltd.All Right
Slide 25: FYE March 2025: Summary
Financial Results for FYE March 2025: Summary Higher net sales and operating profits: 4Q saw profits increase in continuation of 3Q, leading to profit growth for full year also ➢ Operating profit: ¥29.7 billion (+¥1.8 billion YoY, +¥1.2 billion vs. target *¹) Three months of 4Q (Jan.–Mar.): ¥4.2 bil
Slide 26: Financial Results for FYE March 2025
Financial Results for FYE March 2025 (Unit: billion yen) FYE Mar. Year-on- Change Rate of FYE Mar. Year-on- FYE Mar. 2024 2025 FYE Mar. 2025 year Year on year from change 2025 4Q year Year on year target*¹ change target*¹ vs target*¹ (Jan.–Mar.) change Net sales 547.1 560.0 561.2 +14.1 +2.6% +1.2 +0
Slide 27: Summary by Business Segment
FYE March 2025 Financial Results: Summary by Business Segment 4Q：Contribution from Nutrition and Healthcare Foods Business, Global Business, drove increase in full-year operating profit Key points Operating profit: Full-year YoY Operating profit: 4Q (Jan.–Mar.) YoY 1. Nutrition and Healthcare Foods
Slide 28: Factors in operating profit changes for FYE March 2025
Factors Attributable to Increases and Decreases in Operating Profit for FYE March 2025 Change in selling unit prices +9.2<+0.7> <>: difference with targets* Sales volume -0.9<-1.3> Product mix +2.4<-1.1> FYE March 2024 27.8 Business growth Operation cost ＋0.9<-1.0> Sales promotion expenses +0.7<+0.2
Slide 29: 3. Outlook for the Year Ending March 2026
3. Outlook of Financial Results for the Year Ending March 2026 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results 3. Outlook of Financial Results for the Year Ending March 2026 Copyright©Morinaga Milk Industry Co
Slide 30: Outlook of FYE March 2026: Summary
Outlook of Financial Results for FYE March 2026: Summary Plan for increasing operating profit: expand growth areas, continue price revisions, hike profits in Global Business ➢ Net sales: ¥580.0 billion (+3.4％ YoY) Operating Profit: ¥32.0 billion (+¥2.3 billion YoY) ➢ In new MTBP, seeking profit incr
Slide 31: Outlook of FYE March 2026
Outlook of Financial Results for FYE March 2026 (Unit: billion yen) FYE Mar. FYE Mar. 2026 Year-on-year Year on year FYE Mar. FYE Mar. 2026 Year-on-year Year on year 2025 full-year target change 2025 1H 1H target change Net sales 561.2 580.0 +18.8 +3.4% 290.6 303.0 +12.4 +4.3% Operating profit 29.7
Slide 32: Target sales and operating profit for each category
Outlook of Financial Results for FYE March 2026: Target Sales and Operating Profit for Each Category (Unit: billion yen) 1H target Full-year target 1H target Full-year target FYE Mar. 2026 Operating profit Year-on-year Operating profit Year-on- target Net sales Year on year Net sales Year on year (o
Slide 33: Forecast fluctuations to operating profit
Outlook of Financial Results for FYE March 2026: Forecasts of Fluctuations to Operating Profit ( ) : 1H plan Change in selling unit prices +15.4(+7.9) Sales volume -1.0(-0.6) Product mix +5.1(+1.1) FYE March 2025 29.7 Business growth ＋19.5(+8.4) Milk -3.4(-1.2) Others -7.0(-4.9) Raw materials and en
Slide 34: Outlook: Domestic Business
Outlook of Financial Results for FYE March 2026: Domestic Business Domestic business: Revise prices and maintain/expand mainstay segments while expanding growth areas Domestic business ◆ Price revisions Growth areas ・Raw material, energy, operational costs to continue to rise ◆ Yogurt ・Milk price hi
Slide 35: Outlook: Global Business
Outlook of Financial Results for FYE March 2026: Global Business Global Business: Forecast profit increases centered on growth areas and MILEI, decreases in goodwill amortization Global Business ◆ Operating profit: full-time profit target (+¥3.8 billion YoY) Growth areas ・Will expand growth areas of
Slide 36: Outlook of FYE March 2026: Shareholder Returns
Outlook of Financial Results for FYE March 2026: Shareholder Returns Raising dividend payout ratio target, will acquire treasury shares in the market for third consecutive year Medium-term Business Plan 2025–2028 shareholder return policy Annual dividend per share (yen) FYE FYE FYE FYE FYE FYE FYE •
Slide 37: Appendix
Appendix 3/7
Slide 38: Medium-Term Business Plan 2025-2028 Management Indicators (by Segment)
Medium-Term Business Plan 2025-2028 - Management Indicators (by Segment) morinaga Growth segments (Growth) Mainstay segments (Core/Fundamental/Strategic Transformation) (Unit: billion yen) FYE Increase temo Increase Increase unm Increases FYE FYE FYE compared to compared to compared to compared to M
Slide 39: Revision of Sustainability Medium- to Long-Term Plan 2030
| Revision of Sustainability Medium- to Long-Term Plan 2030 morinaga Buyaq-|1em 0 uoNNg’AUED Auuqenie pue Ayayes pooy As of May 2022 (target for FYE Mar. 2031) KPIs Targets let sales of products with consideration for Net products with consideration f — hhealth issues (comooed to FYE Mar. 2022 Parti
Slide 40: Revision of Sustainability Medium- to Long-Term Plan 2030 (details)
| Revision of Sustainability Medium- to Long-Term Plan 2030 As of May 2022 (target for FYE Mar. 2031) rT Details of revision As of May 2022 (target for FYE Mar. 2031) Details of revi ED crease the number of intitves ames at enhancing the value of dairy industry ED 500 ‘out community activities KPIs
Slide 41: Three themes, seven material issues
Three themes, seven material issues (Points of change) Food and Wellness Food and Well-being 1. Contribution to Wellness 1. Contribution to Well-being 2. Food Safety and Reliability 2. Food Safety and Reliability ◇ Based on course of action set out in Medium-term Business Plan 2025–2028, which incor
Slide 42: Roadmap to Carbon Neutrality by 2050
Formulated the Roadmap(Scope1 and Scope2) to Carbon Neutrality by 2050 base year Energy-saving activities, operational improvements (production efficiency optimization, CGS operation) Installation of energy-saving equipment (high-efficiency equipment, insulation technology, DX, electrification, spec
Slide 43: FYE March 2025: Net Sales & Operating Profit by Business Segment
(Reference) Financial Results for FYE March 2025: Net Sales & Operating Profit by Business Segment (Unit: billion yen) Operating profit Operating profit Net sales (operating profit to net sales) Net sales (operating profit to net sales) Rate of FYE Mar. FYE Mar. Year on FYE Mar. FYE Mar. Year-on- Ch
Slide 44: FYE March 2025: Subsegment Net Sales
(Reference) Financial Results for FYE March 2025: Subsegment Net Sales (Unit: billion yen) Rate of FYE Mar. FYE Mar. Year on FYE Mar. 2025 Year on change vs 2024 2025 year target*¹ 4Q (Jan.–Mar.) year Key points Nutrition and Healthcare Foods Business ➢ Sales increase of “Bifidus.” Sales increase an
Slide 45: FYE March 2025: Subsegment Net Sales (Global Business)
(Reference) Financial Results for FYE March 2025: Subsegment Net Sales Rate of change FYE Mar. 2024 FYE Mar. 2025 Year on year vs target*¹ Key points Global Business ➢ Decline in reaction to significant growth in revenue driven by impact of whey market conditions (1Q). Effects disappeared in 2Q, and
Slide 46: Outlook of FYE March 2026: Subsegment Net Sales Targets
(Reference) Outlook of Financial Results for FYE March 2026: Subsegment Net Sales Targets (Unit: billion yen) 1H target Full-year target FYE Mar. 2026 target Net sales Year on year Net sales Year on year Growth Segments Yogurt 31.0 +7% 61.1 +7% Ice cream 30.4 +6% 49.6 +7% (Global Business) NutriCo M
Slide 47: Dairy Ingredient Market Data (Last 5 Years)
(Reference) Dairy Ingredient Market Data (Last 5 Years) Zentrale Milchmarkt Berichterstattung GmbH (ZMB, Central Milk Market Fonterra Global Dairy Trade (GDT) auction Reporting Agency in Germany) Culinary-use whey powder price (€/ton) prices for lactose (US$/ton) 1,700 2,000 1,500 1,500 1,300 1,100
Slide 48: Cautionary Note Regarding Business Forecasts
Cautionary Note Regarding Business Forecasts Figures for plans, policies, and other figures included in this report other than actual past results are forecasts of future business performance, and are calculated based on management’s estimates and understanding of the information available to the Co
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