Slide 1: Financial Results for the Fiscal Year Ended March 2019
Financial Results for the Fiscal Year Ended March 2019 FP Corporation May 14, 2019 FP Corporation ・
Slide 2: Cautions for Handling This Material
Cautions for Handling This Material We have paid extremely close attention to the information provided through presentations at this session and contained in the handouts. The forward-looking statements included in the information are our estimates based on the information available at the time of p
Slide 3: Table of Contents
= Table of Contents = Results and Plan Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami ... 4 For Expansion of Corporate Value President Morimasa Sato . . . 14 Supporting Data . . . 49 FP Corporation ・
Slide 4: Consolidated Financial Results for the Fiscal Year Ended March 2019
Consolidated Financial Results for the Fiscal Year Ended March 2019 Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami FP Corporation 4・
Slide 5: Financial Results Summary
Financial Results Summary (Results for the FY Ended March 2019) Results for Full year Full year Projections FY ended March 2018 FY ended March 2019 FY ended March 2019 Record high increase/ Year-on progress ✔Highest sales ever for Unit: million yen Performance pe rc e n tage Performance pe rc e n ta
Slide 6: Results for Increase/Decrease in Ordinary Profit
0.0 Results for Increase/Decrease in Ordinary Profit (For the FY Ended 20.0 40.0 60.0 80.0 100.0 120.0 140.0 March 2019) Unit: billion yen 160.0 前年 Fiscal Year ended March 2018 13.55 1st half 2nd half Results Difference from Outlook 1st half 6.63 2nd half 6.92 Outlook Outlook Feb 5 May 7 -3.03 +1.13
Slide 7: Capital Investments and R&D Cost
Capital Investments and R&D cost (For the FY Ended March 2019) Results for Full year Full year projections FY ended March 2018 FY ended March 2019 FY ended March 2019 Increase / Progress Unit: million y en Performance Performance decrease Year-on-year Planned rate Tangible fixed assets 29,342 13,442
Slide 8: Balance Sheet
Balance Sheet (For the FY Ended March 2019) Previous consolidated First half of the consolidated fiscal year fiscal year FY ended March 2018 FY ended March 2019 Increase/ Year-on- Breakdown of main increases As of March 31,2018 As of March 31,2019 Unit: million yen decrease y ear and decreases Cash
Slide 9: Cash Flows
Cash Flows (For the FY Ended March 2019) Results for Full year FY ended March 2018 FY ended March 2019 Unit: million yen Performance Performance Breakdown of Main Items Income before income taxes 14,401 Depreciation 13,170 CF from operating activities 13,974 25,510 Increase in notes and accounts rec
Slide 10: Plan for the Fiscal Year Ending March 2020
Plan for the Fiscal Year Ending March 2020 FP Corporation ・
Slide 11: Outline of Plan for Account Settlement
Outline of Plan for Account Settlement (Plan for the FY Ending March 2020 ) Results for Full year Full year projections First half projections FY ended March 2019 FY ending March 2020 FY ending March 2020 increase/ Year-on increase/ Year-on Unit: million yen Performance pe rc e n tage Planned pe rc
Slide 12: Outlook for Increase/Decrease in Ordinary Profit
0 Outlook for Increase/Decrease in Ordinary Profit 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 (Plan for the FY Ending March 2020) Outlook( May 14 2019) Fiscal Year ended March 2019 14.86 Unit: billion yen 1st half 6.48 2nd half 8.38 1st half 2nd half The Price of Material +0.45 （1 half +0.25、2nd ha
Slide 13: Planned Capital Investment and R&D Cost
Planned Capital Investment and R&D Cost (Plan for the FY Ending March 2020) Results for Full year full year projections First half projections FY ended March 2019 FY ending March 2020 FY ending March 2020 Increase / Increase / Progress Unit: million y en Performance Planned decrease Year-on-year Pla
Slide 14: To Increase Corporate Value
To Increase Corporate Value President Morimasa Sato
Slide 15: Circumstances Surrounding the Retail Industry
Circumstances Surrounding the Retail Industry (FP Corporation’s actions) Expansion of home meal replacement market (Propose production of attractive selling spaces) Trend Aggravation of labor shortage (Propose backyard efficiency improvement) Soaring logistics expenses (Increase usage ratio of own t
Slide 16: Trend in Raw Material Prices
Trend in Prices February 2017 April 2018 January 2019 203 January 2018 204 197 Domestic price of general polystyrene July 2017 195 185 April 2019 April 2016 172 163 160 Raw April 2018 January 2019 Domestic price of 140 140 Material general PET January 2017 124 121 July 2017 April 2016 104 Material p
Slide 17: Changes in the Number of Households
Changes in the Number of Households One-person households Couple-only households Households of single parents with children Households of couples with children Ratio of households with Other general households 20,000 one person and couples 0 10,000 30,000 40,000 50,000 aged 65 or older Couple-only 2
Slide 18: Trend in Scale of Home Meal Replacement Market
Trend in Scale of Home Meal Replacement Market 2017 10 10.1 9.8 9.6 9.3 Trillion yen 8.7 8.9 8 8.2 8.1 8.4 7.8 7.9 8.1 7.6 7.2 6 Cooking at home: Approx. 36.1 trillion yen Home meal replacement 4 Approx. 10.1 trillion yen Major food manufacturers Markets expected to grow in the future 2 Eating out:
Slide 19: Consumption Tax Increase and Two-Tier Tax Rates
Consumption Tax Increase and Two-Tier Tax Rates Reduced 8% tax rate Regular 10% tax rate applicable to applicable to Food, takeout meals and Food consumed at home delivery restaurants and eating areas Accelerated entries 19
Slide 20: Expansion after Five Years of Namakara Sozai Proposals
Expansion after Five Years of Namakara Sozai Continued Proposals More companies August 2018 January 2019 offering Namakara Sozai 114 companies 128 companies Following the increase in summer menus Fall Namakara Sozai will be offered Summer commercially throughout the year Up 57% YoY Up 19% YoY 9,000
Slide 21: Endeavors in the New Market of Frozen Food
Endeavors in the New Market of Frozen Food Trend in domestic production of frozen food for households (Billion yen) 318.8 Currently CAUTION 300 ! Hot Container 250 235.7 200 150 100 50 0 Source: Japan Frozen Food Association Take advantage of characteristics of the MFP to enter the frozen food marke
Slide 22: Sales Shares of Original Products
Sales Shares of Original Products Conventional Conventional materials materials Results as of the end of March 2019 （79％ as of the end of March 2018） New products made of 80％ conventional materials* （58％ as of the end of March 2018） Eco PSP Eco APET Original 60％ products ＯＰＥＴ ＭＦＰ ＭＳＤ New Transparent
Slide 23: Actions for Recycling
Actions for Recycling i TIeI
Slide 24: Ocean Plastic Pollution: Background and Current Reality
Ocean Plastic Pollution: Background and Current Reality These two problems are combined and develop into a major global issue Due to China’s waste import restrictions, the problem of waste Problem of ocean microplastics disposal has become serious in Europe and other regions. 2018 2019 G7 Ocean Plas
Slide 25: Preventing Inputs of Plastics from Land into the Ocean
Necessary Measure: Preventing Inputs of Plastics from Land into the Ocean Ranking of countries in the inputs of plastic waste from land into the ocean (2010 estimate) 1st: China 3.53 mn tons/year 2nd: Indonesia 1.29 mn tons/year 3rd: Philippines 0.75 mn tons/year 4th: Vietnam 0.73 mn tons/year 5th:
Slide 26: Recycling of Plastics from Household Waste
Recycling of Plastics from Household Waste (Non-Industrial Waste) Single PET bottles material Material recycling Approx. [Recycling of materials] 0.75 mn tons Food containers Approx. 0.8 mn tons Thermal recycling [Thermal recovery] Soft packaging Approx. 3.0 mn tons Composite material 26
Slide 27: Promoting 3Rs (Reduce, Reuse, and Recycle)
Promoting 3Rs (Reduce, Reuse, and Recycle) Poster displayed at Not single-use but a resource approx. 5,800 stores Appropriate recycling is important. The FPCO Group is committed to activities for encouraging recycling. (by 141 companies as of the end of March) Number of visitors to recycling plants:
Slide 28: Collection of Plastic Resources
Collection of Plastic Resources * The corresponding values for the number of containers and bottles were calculated based on the following standard weights. Amount (number) of recycled containers/bottles Foam tray: approx. 4 grams; transparent container: approx. 10 grams; PET bottle: approx. 25 gram
Slide 29: Eco Tray / Eco APET CO2 Reduction
Eco Tray / Eco APET CO2 Reduction Eco Tray CO2 Reduction Effect Eco APET In FY ended March 2019, CO2 emissions were cut by 135,000 tons a year (Eco Tray: 33,000 tons / Eco APET 78,000 tons / Eco OPET 23,000 tons) Comparison between FPCO’s virgin products and eco products per kilogram <Trend in Sales
Slide 30: Selecting Environmentally Friendly Materials and Supplies
Selecting Environmentally Friendly Materials and Supplies Supermarket Presents joint actions for recycling with FPCO on its website and in its in-house magazine. General meeting of shareholders In-house Website magazine Collection box Convenience Positively adopts environmentally friendly Wholesaler
Slide 31: Investment in Recycling and Ratio of Eco Products
Investment in Recycling and Ratio of Eco Products Sales shares of eco products Eco OPET developed Eco PSP Eco APET Eco OPET Eco APET released Eco Trays only 37% 31% 32% 28% 28% 26% 15% 16% 16% 16% 16% 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 3/2019 Kyushu Capacity Chubu
Slide 32: Weight and Stacking Height Reduction
Weight and Stacking Height Reduction Kyonishiki 20-16R Tosai 19-17 Weight Reduction Material: HI Material: Low-foamed PSP Reducing the weight and thickness Weight per tray reduced to by 5% compared to the FY2013 nearly one third level by 2020 22.9 g per tray 7.8 g per tray Stacking Height Reduction
Slide 33: Streamlining of Logistics and Manufacturing
Streamlining of Logistics and Manufacturing
Slide 34: Actions for Suppressing Soaring Logistics Expenses
Actions for Suppressing Soaring Logistics Expenses Increase load efficiency per truck Increase ratio of private services March 2018 March 2019 Up 6.9% from FY2015 level 96.4% 97.2% Up 0.8% Approx. 11,000 cases (Sai* per truck) * 1 sai = 0.027826474 m 3 97.2% 2.8% 1,4021,405 Private Regular 1,397 1,4
Slide 35: Towards Automated and Unmanned Warehouse Operations
Towards Automated and Unmanned Warehouse Operations Human labor Automated Being studied Receipt Shipping Truck Feed Truck Forklift Vertilator Forklift AGV Forklift Storing Picking Forklift AGV Forklift into Sorter sorter Transfer by lift Transfer by lift Feeding method (being studied) (being studied
Slide 36: Steady Improvements
Steady Improvements 1) Listen to 900.0 Productivity enabled by voice picking instructions Items/Hour 2) Select with 800.0 both hands 700.0 Mar. 2019 600.0 798 items per hour 500.0 400.0 Immediately after 300.0 introduction of the system: 200.0 300 Oct Oct Oct Oct Jan Jun Jul Jan Jun Jul Jan Jun Jul
Slide 37: Strong Crisis Management Structure Supporting Stable Supply
Strong Crisis Management Structure Supporting Stable Supply Natural Disasters in 2018 Business Continuity Plan (BCP) Hokkaido Eastern Iburi for uninterrupted logistics operations Heavy snow in Hokuriku Earthquake in September in the event of a disaster region in February 2018 2018 Northern Osaka Eme
Slide 38: Streamlining Effect in Manufacturing Division
Streamlining Effect in Manufacturing Division Trend in number of shots per hour (expressed in index form) Production Production 113 shot equivalent to capacity -0.1 s +3.9 lines 100 Up 13% from FY3/2008 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 3/2019 0.1 s/shot ×
Slide 39: Higher Work Efficiency Enabled by Automation
Higher Work Efficiency Enabled by Automation (Manufacturing Division) Labor saving of approx. 161 workers Labor saving of 3/2020 Labor saving of approx. 112 workers Plan approx. 94 workers 3/2019 3/2018 Automatic dusting and 8 units (all for PET) packaging machines forecasted at the end of FY3/2020
Slide 40: Disability Employment and Development of Working Environment
Disability Employment and Development of Working Environment
Slide 41: Diversity Management That Maximizes Abilities
Diversity Management That Maximizes Abilities Certification Sorting centers: 10 locations for Employment of People with Disabilities ■Jan.2019（Ministry of Health, Labor and Welfare ） 7 in-house locations FY2018 People with Disabilities Active 1 location with a contractor Company Certification 2 loca
Slide 42: Development of Working Environment
Development of Working Environment Investment in company housing and group homes for people with disabilities Revision of the retirement benefit programs at some group Group home for Pico House disabilities (48 units) at companies Pico House No. 3 No. 3 (Fukuyama, Hiroshima Pref.) Completion schedul
Slide 43: Growth Strategy
Growth Strategy
Slide 44: Start of Operation for the New Business Model
Start of Operation for the New Business Model Product purchase Group’s wholesalers MD Strength in locally Selecting items, consolidating based sales inventory, enhancing lineup of private brand (PB) products FPCO International FPCO Trading FPCO Group’s Package FPCO Ueda 26,127 FPCO Ishida 17,146 inf
Slide 45: Start of Operation for the New Business Model
Start of Operation for the New Business Model Transaction amount of materials and supplies (for illustrative purposes) Small customers Growing demand for take-out food Convenience stores and supermarkets Restaurants Group’s wholesalers FPCO Group’s infrastructure Leading wholesalers in different reg
Slide 46: Capital Investment and Cash Flows
Capital Investment and Cash Flows Cash flows from operating activities Billion yen 60 15.0% 12.5% 12.8% 12.0% 12.0% 11.5% 10.1% Capital investment: 50 10.6% 8.9% 10.0% ROE Goal of 18 to 20 billion yen 7.8% 9.1% Enhance the system for supplying high value-added products 7.7% from the perspective of m
Slide 47: Growth Strategies of FPCO
Growth Strategies of FPCO Considering overseas expansion Considering M&A Long-term plan Net sales: ¥300 bn Growth strategy 2 Ordinary profit: ¥30 bn (Net sales) Billion yen Home delivery market Frozen food market (Ordinary profit) 300 Markets of materials and 30 consumables 250 Growth Strategy 1 25
Slide 48: To Increase Corporate Value
To Increase Corporate Value “We ensure that we deliver the best-quality products at competitive prices when they are needed.” Hardware Software Balance People We adhere to the FPCO-DNA and continue to make proposals with the foresight of the near future based on our workplace-oriented policy and cus
Slide 49: Supporting Data
Supporting Data FP Corporation ・
Slide 50: Explanation of terms
Explanation of terms PS ： Polystyrene PET ： Polyethylene terephthalate PP ： Polypropylene Multi FP (MFP) ： An formed PS (polystyrene) container with cold and heat resistance to temperatures between -40ºC and +110ºC and with superior oil and acid resistance and thermal insulation. Multi Solid (MSD) ：
Slide 51: World's First Sheets and Materials
World’s First Sheets and Materials Evolution from a sheet processing manufacturer PP: polypropylene PS: polystyrene PSP: foamed polystyrene Easy to mold Heat-resistant: +110ºC Low raw material ratio High oil resistance Weight reduction is possible Foam is hard and resistant to High ins
Slide 52: Trends in original products development
Trends in original products development ’11/3 ’12/3 ’13/3 ’14/3 ’15/3 ’16/3 ’17/3 ’18/3 ’19/3 Feb. 2010: Market release of the Multi FP (MFP) Feb. 2012: Market release of the Multi Solid (MSD) May 2012: Market release of the Eco APET Nov. 2010 Jun. 2014 March 2016 Chubu PET Recycling Plant Nishiniho
Slide 53: Factors influencing Ordinary Profit
Factors influencing Ordinary Profit Unit:100 million yen '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 20/3 Plan '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full half half year half half year half half
Slide 54: Trends in Capital Investment and R&D Costs
Trends in Capital Investment and R&D Costs FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY
Slide 55: Strategy for Plastic Material Recycling by the Ministry of the Environment
Strategy for Plastic Material Recycling by the Ministry of the Environment (Rough Plan) Strategy for Plastic Material Recycling Ocean Plastics Charter endorsed at by the Ministry of the Environment Charlevoix G7 Summit in Canada (Rough Plan): Milestone We aim to reduce emissions of single-use plasti
Slide 56: Collaboration with Related Ministries, Agencies and Organizations
Collaboration with Related Ministries, Agencies and Organizations Actions of related ministries, agencies and organizations FPCO’s involvement ● Plastic resources recycling strategy Participation in a subcommittee as an industrial Presentation on Japan’s plastic resource recycling strategy planned
Slide 57: Information on the Facility Tour
【 Information on the Facility Tour 】 Contact: Takashima at the Corporate Planning Department (TEL)+81-3-5325-7756 (MAIL)ir_7947@fpco-net.co.jp at a convenient time for you. An opportunity to take a look at the state-of-the-art Production, Distribution, Recycling operations Kanto 30 minutes from Koga