Meiji Holdings Co., Ltd. · TSE:2269
Meiji — Corporate Update (April 2024)
14 slides from Meiji's corporate update, Apr 9, 2024
Slide 1: Revisions to Consolidated Financial Forecasts for FYE March 2024 and Recording of Impairment Loss
Revisions to Consolidated Financial Forecasts for FYE March 2024 (FY2023) and Recording of Impairment Loss Explanatory Material April 9, 2024 0 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 2: Agenda
AGENDA 1. Revisions to FY2023 Consolidated Financial Forecasts and Recording of Impairment Loss 2. Current State of China Business and Future Initiatives 1 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 3: 1. Revisions to FY2023 Consolidated Financial Forecasts and Recording of Impairment Loss
1. Revisions to FY2023 Consolidated Financial Forecasts and Recording of Impairment Loss 2 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 4: Revisions to FY2023 Consolidated Financial Forecasts
Revisions to FY2023 Consolidated Financial Forecasts (JPY bn) FY2022 FY2023 FY2023 Results Plan Revised plan vs. Plan YoY Change (as of Nov.) as of Nov. +4.8% +1.3% Net sales 1,062.1 1,098.5 1,113.0 +50.8 +14.5 +4.6% +1.6% Food segment 865.6 891.1 905.5 +39.8 +14.3 +5.5% Pharmaceutical segment 197.2
Slide 5: Recording of Impairment Loss Related to Drinking Milk and Yogurt Business in China
Recording of Impairment Loss Related to Drinking Milk and Yogurt Business in China JPY Impairment loss related to AustAsia Group Ltd. (equity Decline in profitability due to soaring feed prices method affiliate*) [Share of loss of entities accounted 6.2 bn and drop in raw milk prices in China for us
Slide 6: 2. Current State of China Business and Future Initiatives
2. Current State of China Business and Future Initiatives 5 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 7: Overview of China Business
Overview of China Business (JPY bn) FY2023 Sales by business* (RMB million) FY2022 Plan Results YoY Change (as of Nov.) BtoC Drinking Milk and Yogurt +13.5% Net Sales 21.4 24.3 +2.8 BtoB Drinking Milk and Cream Confectionery ー Operating profit -0.4 -4.0 -3.5 Ice Cream 7.0 Other 3.1 454.0 3.7 456.4 3
Slide 8: Drinking Milk Business: Changes in External Environment
Drinking Milk Business: Changes in External Environment Market trend of drinking milk Number of café of the three (RMB million) major franchises LL Around Chilled 40,000 29,184 111,083 114,211 119,793 6,066 103,827 x3 92,546 97,509 16,218 8,912 40,086 39,134 39,222 4,789 27,294 30,450 33,035 6,900 4
Slide 9: Existing Initiatives and Issues
Existing Initiatives and Issues Expand product lineups Such products did not take hold so • Introduce new products with enhanced nutritional function and products well in the market and are still on aligned with local needs the way to a growth trajectory • Launched functional yogurt and strengthen
Slide 10: Financial Forecasts for China Business
Financial Forecasts for China Business (JPY bn) FY2023 FY2026 Op. profit Improvement for 3 years Op. profit +0.5 to +1.0 Aim to break even Growth outside of -4.0 +1.0 to +1.5 drinking milk and yogurt business* Contribution margin increase Approx. +2.0 to +2.5 -1.0/year Initiative 2 Decrease due to D
Slide 11: Key Points of Future Initiatives
Key Points of Future Initiatives 1. Structural reforms Review areas and stores with lower profitability Cost reductions across entire supply chain (review merchandising and logistics, pursue optimal personnel distribution, reduce production and procurement costs) Organize production structure,
Slide 12: Appendix
Appendix 11 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 13: Market Trend in China
Market Trend in China (RMB million) Drinking Milk Yogurt LL 146,888 CAGR+1.8% Chilled 133,918 141,419 140,145 130,289 123,268 119,150 119,889 121,619 124,062 127,152 144,730 138,349 141,688 133,161 126,786 111,083 114,211 119,793 97,509 103,827 92,546 CAGR+7.3% 45,358 49,195 52,433 55,770 30,450 33,
Slide 14: Information in this material is not intended to solicit sale or purchase of shares
Information in this material is not intended to solicit sale or purchase of shares in Meiji Holdings. The final decision relating to investments should be made based on the judgment of users themselves. Business forecasts and other forward-looking statements are based on information available at