Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — H1 FY2019 Earnings Presentation
25 slides from Nissin Foods's earnings presentation, Nov 7, 2018
Slide 1: Consolidated Results for the First Half of the Fiscal Year Ended March 31, 2019
Consolidated Results for the First Half of the Fiscal Year Ended March 31, 2019 Announced on November 7, 2018 This material was released on November 9, 2018 for the results briefing.
Slide 2: Executive Summary
1 Executive Summary Aim to make a further leap forward in the milestone year of the 60th anniversary of the birth of instant noodles! Domestic: “Heat up” the Japanese market through the strong enhancement of long-selling brands - Aim to maximize sales by enhancing products that will celebrate their
Slide 3: FY2019 1st Half Results: Summary
2 FY2019 1st Half Results: Summary (bil. yen) FY2019 FY2018 1H Results YoY Change YoY Change(%) 1H Results Revenue 214.7 +4.1 +1.9% 210.6 Operating profit 22.5 +3.8 +20.4% 18.7 Profit attributable to owners of parent 15.2 +0.6 +4.2% 14.5 OP margin 10.5% +1.6pt 8.9% Profit attributable to owners of p
Slide 4: Revenue Results by Segment
3 Revenue Results by Segment (bil. yen) FY2019 FY2018 1H Results YoY Change YoY Change(%) 1H Results Instant Noodles 105.6 +1.9 +1.8% 103.7 NISSIN FOOD PRODUCTS 89.6 +0.9 +1.0% 88.7 MYOJO FOODS 16.0 +1.0 +7.0% 15.0 Chilled and frozen foods 27.7 +0.7 +2.8% 26.9 Confectionery and beverages 21.4 -0.6 -
Slide 5: Revenue Contribution by Segment
4 Revenue Contribution by Segment Impact Major Factors (bil. Yen) Cup-type (+0%): Revenue of “CUP NOODLE” remained at the same level as the previous year. NISSIN Revenue was driven by “DONBEI” and “U.F.O”. FY2018 1H Bag-type (+7%): Revenue was driven by the “CHICKEN RAMEN” brand, which marked its 60
Slide 6: Operating Profit Results by Segment
5 Operating Profit Results by Segment (bil. yen) FY2019 FY2018 1H Results YoY Change YoY Change(%) 1H Results Instant Noodles 13.5 +0.5 +3.6% 13.1 NISSIN FOOD PRODUCTS 12.3 +0.3 +2.5% 12.0 MYOJO FOODS 1.3 +0.2 +15.2% 1.1 Chilled and frozen foods 1.2 +0.0 +1.6% 1.1 Confectionery and beverages 1.4 -0.
Slide 7: Operating Profit Contribution by Segment
6 Operating Profit Contribution by Segment Impact Major Factor (bil. Yen) FY2018 1H NISSIN 18.7 +: Higher revenue, reduction in general administrative expenses and advertising expenses. Operating profit FOOD +0.3 -: Increase in distribution expenses (increase in inventories for new construction of p
Slide 8: Major Factors for Difference in Operating Profit (Impact of Non-Recurring Income and Losses)
7 Major Factors for Difference in Operating Profit (Impact of Non-Recurring Income and Losses) (bil. Yen) FY2019 FY2018 Difference in non- Difference in recurring income Main items of non-recurring 1H Results 1H Results operating profit and losses income and losses NISSIN FOOD PRODUCTS 12.3 12.0 +0.
Slide 9: Analysis of Operating Profit: Consolidated (Domestic / Overseas)
8 Analysis of Operating Profit： Consolidated (Domestic / Overseas) (bil. yen) YoY change Decrease factors Increase factors Domestic CoGS ratio + Impacts of change in the breakdown of products by category, Increase/decrease of marginal profit A: Revenue (Domestic) +0.7 (Effect of deducting selling
Slide 10: Progress of Medium-Term Business Plan 2021
9 Progress of Medium-Term Business Plan 2021 Representative Director, President and CEO Koki Ando
Slide 11: Mid-term Plan Key Strategy Themes to Achieve Targets
10 Mid-term Plan Key Strategy Themes to Achieve Targets Focusing on five key themes in pursuit of business profitability Domestic Overseas 1 Next Promoting Instant noodles stage Global Branding 3 2 Focusing on priority Business Laying stronger overseas locations foundations for our domestic profit
Slide 12: Globalize CUP NOODLES
11 Globalize CUP NOODLES FY2019/1H Promoting Global Branding CUP NOODLES growth rate Overseas sales quantity of CUP NOODLES (Mid-term plan KPI) 1.5 times for FY2021 as compared to FY2016 • Growth target for this fiscal year: 8% or more +7% '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 FY2018/1H FY20
Slide 13: Focusing on Priority Locations: Progress in BRICs (1)
12 Focusing on Priority Locations Progress in BRICs (1) Brazil ➢ CUP NOODLES ➢ Bag-type noodles • Increase in promotion campaigns mainly in the Southeast, South and • As the economic circumstances improve, the bag-type noodles Central West regions where the economic recovery is remarkable market,
Slide 14: Focusing on Priority Locations: Progress in BRICs (2)
13 Focusing on Priority Locations Progress in BRICs (2) India To strengthen the ability to make proposals with high value-added products that will prevent involvement in price competition and increase the presence in the market. ➢ Bag-type noodles ➢ Cup-type noodles • Growth potential in light of
Slide 15: Operation of the new Kansai Plant
14 Laying stronger Operation of the new Kansai Plant foundations for our domestic profit base Achievement of more advanced labor saving and food defense! Birth of new futuristic plant, smart factory Introduction of state-of-the-art facility, robotics • Achievement of automated processes from the i
Slide 16: Initiatives in the Chilled and Frozen Foods and Confectionery Businesses
15 Establishing a Initiatives in the Chilled and Frozen Foods and Confectionery Businesses Second Primary Earning Source Frozen foods for consumer: +9% growth in the first half Initiatives in the chilled and ✓ One billion yen: increase in SKUs from 4 products to 6 products frozen foods business SH
Slide 17: Developing and Strengthening Human Resources for Global Management / ESG
5 16 Developing and Strengthening Human Resources for Global Management / ESG New president of NISSIN FOODS (U.S.A.) President: Michael J. Price NISSIN FOODS (U.S.A.) CO., INC from October 2018 Worked for a leading food company in the U.S. for many years. Served as the general manager of divisions
Slide 18: NISSIN FOODS Group Sports Marketing
Other 17 NISSIN FOODS Group Sports Marketing On September 8, 2018, Naomi Osaka became the first Japanese to win the Grand Slam women's singles championship.
Slide 19: APPENDIX
18 APPENDIX
Slide 20: FY2019 1st Half Analysis of Operating Profit: Consolidated (Overall Group)
19 FY2019 1st Half Analysis of Operating Profit： Consolidated (Overall Group) (bil. yen) YoY change Decrease factors Increase factors A: Revenue Increase/decrease of (Effect of deducting selling expense : +0.2 bil. yen) 1.4 marginal profit B: CoGS ratio -1.3 C: Distribution cost ratio -1.0 Increase/
Slide 21: FY2019 Domestic Business: Policy and Activities by Segment (1)
20 FY2019 Domestic Business: Policy and Activities by Segment (1) NISSIN FOODS PRODUCTS Generate cash and enhance profitability Youth: increase of brand communication ➢ Challenge to be a “Century Brand Company” Women: CUP NOODLE Ethnic series renewal Senior citizens: Release/development of products
Slide 22: FY2019 Domestic Business: Policy and Activities by Segment (2)
21 FY2019 Domestic Business: Policy and Activities by Segment (2) Chilled and frozen foods business “FUTOMEN YAKISOBA” ✓ Development of the top “GYORETSU ICHININMAE” ➢ NISSIN CHILLED FOODS product in the genre ✓ Taking in needs for single- • Further development of the top product in the ✓ Aim for re
Slide 23: FY2019 Overseas Business: Policy and Activities by Segment (1)
22 FY2019 Overseas Business: Policy and Activities by Segment (1) The Americas Price revisions ➢ U.S.A. ✓ Price revisions to “CUP NOODLES” and “Top Ramen” • Sales expansion of existing brands and strengthening of the earnings base Sales expansion of high- • Revitalization of the market through propo
Slide 24: FY2019 Overseas Business: Policy and Activities by Segment (2)
23 FY2019 Overseas Business: Policy and Activities by Segment (2) Asia ➢ Indonesia “Gekikara” “Nissin Ramen” ✓ Cessation of the shock of • Increase in the ability to propose products in the ✓ Renewal (August) South Korea of the last year country with the second highest consumption of instant 6000Rp
Slide 25: NISSIN FOODS HOLDINGS CO., LTD.
Information in this material is not intended to solicit sales or purchase of NISSIN FOODS HOLDINGS stock shares. The comments and estimates in this document are based on the company’s judgment at the time of publication and their accuracy is not guaranteed. They are subject to change without notice
Nissin Foods Holdings — H1 FY2019 Earnings Presentation on 6ix