Sti Foods Holdings, Inc. · TSE:2932
Sti Foods — Q3 2021 Earnings Presentation
32 slides from Sti Foods's earnings presentation, Nov 9, 2021
Slide 1: Results Briefing Materials for the Third Quarter of the Fiscal Year Ending December 31, 2021
Results Briefing Materials for the Third Quarter of the Fiscal Year Ending December 31, 2021 Second Section of the Tokyo Stock Exchange (Securities Code: 2932) IR e-mail distribution registration (Japanese only) https://www.magicalir.net/2932/mail/index.php ◆ 2021.11.09
Slide 2: Financial summary
Financial summary
Slide 3: Summary of consolidated financial results
Summary of consolidated financial results Net sales YoY Ordinary income YoY Fiscal year ending December 31, 2021 3Q 19,223 114.9% 1,335 million yen 155.7% Cumulative period million yen (January to September 2021) Fiscal year ended December 31, 2020 3Q 16,727 - 857 million yen - Cumulative period mil
Slide 4: Quarterly income and expense comparison
Quarterly income and expense comparison ◼ Net sales for the third quarter increased compared to the previous quarter due to growth in sales of cup salads ◼ The ratio of cost of sales to net sales increased by 2.7 points in the third quarter compared to the previous quarter ◼ Reduce the cost of sales
Slide 5: Consolidated statement of income (summary)
Consolidated statement of income (summary) (Unit: million yen) Fiscal year ended Fiscal year ending December 31, 2020 3Q December 31, 2021 3Q Cumulative period Cumulative period (January to September 2020) (January to September 2021) Results Sales ratio Results Sales ratio YoY Change Net sales 16,72
Slide 6: Consolidated balance sheet
Consolidated balance sheet (Unit: million yen) End of 4Q of End of 3Q of FYE 2020/12 FYE 2021/12 (2020.12.31) (2021.09.30) Results Results Change Change Total assets 11,324 11,428 100.9% 103 Current assets 6,775 6,738 99.5% -37 Of which, cash and 2,598 1,549 59.6% -1,049 deposits Non-current assets
Slide 7: Increase in cost of sales
Increase in cost of sales Overall background ◼ Stagnation in the supply chain due to the suspension of operations at plants and ports as a result of the lockdown that began in Vietnam in early July ◼ Surge in demand due to the relaxing of regulations related to the coronavirus in Europe and the US,
Slide 8: Earnings forecast and shareholder return policy
Earnings forecast and shareholder return policy
Slide 9: FYE 2021/12 full-year earnings forecast
FYE 2021/12 full-year earnings forecast At the time of the announcement of financial results for the second quarter of the fiscal year ending December 31, 2021 As a result of repeated efforts to achieve the full-year forecast set at the beginning of the fiscal year and to further increase sales and
Slide 10: Shareholder return policy
Shareholder return policy Dividends FYE 2021/12 FYE 2021/12 FYE 2020/12 results previous forecast revised forecast Dividend per share 40 yen 45 yen 55 yen *Announced on August 10, 2021 Expansion of shareholder special benefit program from once a year to twice a year On the last day of June every yea
Slide 11: Progress in priority measures
Progress in priority measures
Slide 12: Progress in priority measures
Progress in priority measures Maximize ability to create Strengthen R&Ds Expand business and new product development with Seven-Eleven, Inc. ◼ Taking on the challenge of new ◼ Overseas market development production methods and (US and Asia) technologies at a faster pace ◼ Measures to expand domestic
Slide 13: Progress in priority measures: Increase production capacity
Progress in priority measures: Increase production capacity Expansion of production facilities by STI Miyagi ◼ Completed the installation of a daily food line for the Tohoku region, securing a capacity of 120,000 meals ◼ Completed expansion of continuous smoke line Establishment of Osaka plant (tent
Slide 14: Progress in priority measures: Expansion of new sales
Progress in priority measures: Expansion of new sales Expansion into Asian region ◼Business negotiation with Seven-Eleven (Taiwan) has progressed ✓Completed the selection of products and plan to sell them as Japanese food and grilled fish next spring ✓To be determined after verification of shelf lif
Slide 15: Production and logistics support for sales in Taiwan
Progress in priority measures: Production and logistics support for sales in Taiwan ◼ STI Delica covers the Kinki region with the completion of STI Miyagi's daily food line installation ◼ STI Delica's coverage of the Kinki region enables shipment from STI Enak (Fukuoka) to Taiwan Logistics plan Curr
Slide 16: Development of new products - Seven-Eleven hot menu
Progress in priority measures: Development of new products - Seven-Eleven hot menu [Phase 1] November: Hot Cup Deli Series ◼ Started sales of "Seafood and Vegetable Ajillo" [Phase 2] December: Launch of two new boiled fish products for winter ◼ New products featuring flounder and redfish arranged fo
Slide 17: Appendix
Appendix
Slide 18: Company profile / business description
Company profile / business description Company profile Name of STI Foods Holdings, Inc. Establishment November 2017 (founded in December 1988) company 1-15-14, Minami Aoyama, Number of Headquarters 274 (including 711 temporary employees) Minato-ku, Tokyo employees *As of December 31, 2020, temporary
Slide 19: History
History 1988 2010 2017 2018 2020 April SANYO FOODS CO., LTD. was split to establish 2021 STI Miyagi, Inc. and STI Sanyo, Inc. September Listed on the Second Section of the Tokyo 2020 Stock Exchange June Acquired all shares of YAMATOMI CO., LTD. 2020 August Established STI Delica, Inc. 2018 January B
Slide 20: Management policy
Management policy Mission of STI Foods Holdings STI Foods Holdings will fulfill its responsibility to create a valuable food culture by respecting domestic and international food resources for the happiness of its employees and a more prosperous future for society. Company creed (the values that are
Slide 21: Group and production bases
Group and production bases ◼ The Group is formed of STI Foods Holdings, six consolidated subsidiaries and one non-consolidated subsidiary. ◼ Each plant has its own specialties and products, and by combining them, Overseas business the manufacturing system can handle any of the three temperature rang
Slide 22: Strengths of the business (1)
Strengths of the business (1) ◼ Manufacturer of marine products and food ingredients specializing in the fish category ◼ Although overall sales of prepared foods at CVS decreased due to COVID-19, sales of bagged prepared foods remained strong. Growth of home-delicatessen business is driving the food
Slide 23: Strengths of the business (2)
Strengths of the business (2) ◼ Thorough temperature control and reduction in the number of thawing cycles in the integrated production (cooking) process to improve the quality of taste Manufacturing process for grilled fish prepared foods ◼ Pursuit of freshness and size Standard raw Temperature • S
Slide 24: Strengths of the business (3)
Strengths of the business (3) ◼ Reduce raw material costs by thoroughly addressing food loss with a product portfolio that uses up all ingredients. Integrated production system that achieves both deliciousness and reduced raw material costs Integrated manufacturing Procurement (primary cooking and f
Slide 25: Other priority measures: Expand business with Seven-Eleven, Inc.
Other priority measures: Expand business with Seven-Eleven, Inc. Overseas expansion ◼ Commence concrete studies on the establishment of new plants in the US, including M&As, in order to expand overseas (North America) ◼ Commence exporting from STI Enak (Fukuoka Plant) to Asian countries (Taiwan, Chi
Slide 26: Other priority measures: Strengthen R&Ds and new product development
Other priority measures: Strengthen R&Ds and new product development ◼ Research new manufacturing methods and develop unique marine food products that do not exist in the world using technologies with high barriers to entry Nurture food professionals: Deepen Taking on the challenge of new production
Slide 27: Other priority measures: Expansion of new sales
Other priority measures: Expansion of new sales M&A strategy ◼ Expand the Group's sales functions by shifting to a strategy that includes the acquisition of sales and logistics companies, in addition to the consideration of M&As centered on existing manufacturing plants Start new transactions with d
Slide 28: Progress of investment plan
Progress of investment plan 3Q cumulative Investment items Plan results Establishment of new Osaka 500 million yen ー million yen plant Sales Expansion of production improvement 267 million yen 329 million yen facilities at existing plants measures Expansion of employee 197 million yen 201 million ye
Slide 29: Outline of the public offering and secondary offering
Outline of the public offering and secondary offering Type of issuance / area of Domestic public offering and secondary offering offering Number of new shares to be issued: 200,000 shares Number of shares to be Number of shares to be sold: 300,000 shares (seller: Yutaka Jumi) offered and sold OA (th
Slide 30: Purpose of the public offering and secondary offering
Purpose of the public offering and secondary offering ◼ To respond to increased demand and improved delivery efficiency ✓ FYE December 31, 2021 Expansion of new plant in Osaka ◼ FYE December 31, 2023 Preparation for the expansion of a new plant in the Tokyo metropolitan area ◼ Fulfillment of formal
Slide 31: SDGs initiatives
SDGs initiatives Reduce the burden on the environment and society in all parts of the value chain, from procurement, processing, distribution, consumption, and disposal, and work to solve social issues through business Responsibility to deliver the Mission as a food manufacturer Eco-friendly busines
Slide 32: [Precaution]
[Precaution] The forward-looking statements contained in this document are based on management's assumptions and beliefs in light of the information currently available, and are subject to change due to macroeconomic conditions and industry trends. Accordingly, please be aware that there are risks a