Kagome Co., Ltd. · TSE:2811
Kagome — FY2021 2Q Earnings Presentation
30 slides from Kagome's earnings presentation, Apr 1, 2021
Slide 1: Results Briefing Materials for FY2021/2Q
Results Briefing Materials for FY2021/2Q Kagome Co., Ltd. Securities code: 2811 Figures in these materials - Amounts are rounded down to the nearest 100 million yen. Part of amounts for core operating income are rounded down to the nearest 10 million yen. - Percentages are rounded to one decimal pla
Slide 2: 1. Summary of Business Results for FY2021/2Q
1. Summary of Business Results for FY2021/2Q 2
Slide 3: FY2021/2Q Consolidated Results
FY2021/2Q Consolidated Results Achieved gains in revenue and profit due to rising health consciousness, continued stay-at-home demand and measures to stimulate demand for vegetables such as the “Let’s Eat Vegetables” campaign Results YoY Unit: 100 million yen Rate of FY2020/1H FY2019/1H Margin chang
Slide 4: FY2021/2Q Results by Segment
FY2021/2Q Results by Segment Achieved gains in revenue in all segments except domestic agriculture business Achieved higher profit overall given a strong performance in international business, which offset lower profit in domestic businesses Revenue Core Operating Income FY2021 FY2021 FY2020/ FY2019
Slide 5: FY2021/2Q Topics
FY2021/2Q Topics Domestic processed food business Beverages Achieved a year-on-year increase in revenue due to the release of new products and proactive promotions Domestic processed food business Direct marketing Positioned as a business expected to drive growth and disclosed as a separate segment
Slide 6: Monthly Revenue Compared with 2020 and 2019
Monthly Revenue Compared with 2020 and 2019 Revenue from beverages and products for household use in domestic business exceeded 2019 levels Revenue from products for institutional and industry use fell far below 2019 levels in domestic business and almost recovered to 2019 levels in the U.S. * 29 da
Slide 7: Domestic Processed Food Business Beverages
Domestic Processed Food Business Beverages Achieved year-on-year increase in revenue due to the release of new products and energetic promotions Revenue reached 37.1 billion yen (up 700 million yen year on year) and core operating income was 3.51 billion yen (down 40 million yen year on year). Year-
Slide 8: Domestic Processed Food Business Direct marketing
Domestic Processed Food Business Direct marketing Revenue increased due to growing use of the direct marketing channel and rising health-consciousness Revenue reached 6.0 billion yen (an increase of 400 million yen year on year), and core operating income was 390 million yen (rising 30 million yen y
Slide 9: Domestic Processed Food Business Food and others
Domestic Processed Food Business Food and others Revenue from products for household use fell in the absence of the previous year’s demand while revenue from products for institutional and industrial use increased Revenue reached 21.7 billion yen (up 100 million yen year on year), and core operating
Slide 10: Domestic Agriculture Business
Domestic Agriculture Business Revenue and core operating income both declined year on year due to weaker selling prices of fresh tomatoes caused by the downturn in market conditions from January to April Revenue was 4.9 billion yen (a drop of 300 million yen year on year) and core operating income w
Slide 11: Implementation of “Let’s Eat Vegetables” campaign
Domestic Business Implementation of “Let’s Eat Vegetables” campaign In some cases, the dissemination of information via media such as TV commercials, newspaper ads and social media encouraging people to increase their vegetable intake by 60g has increased purchase intentions among consumers aware of
Slide 12: Implementation of “Let’s Eat Vegetables” campaign
Domestic Business Implementation of “Let’s Eat Vegetables” campaign Implemented various collaborations as part of the vegetable promotion project from January to August 2021 Example (1) Vegetable-themed Example (2) Cooking classes Example (3) Promotion internally Example (4) Production of collaborat
Slide 13: International Business
International Business Revenue and core operating income both increased as a recovery of demand in the food service market was steadily turned into revenue and the effects of structural reforms initiated the previous year also became evident Revenue reached 25.7 billion yen (increasing 3.1 billion y
Slide 14: Factors Contributing to Core Operating Income Changes
Factors Contributing to Core Operating Income Changes Increases in advertising expenses and promotion expenses in the Domestic Processed Food Business and lower profit in the Domestic Agriculture Business were offset by higher profit in the International Business Unit: 100 million yen 20年度上期 1H FY20
Slide 15: Factors Contributing to Operating Income and Profit Changes
Factors Contributing to Operating Income and Profit Changes Increase in operating income and profit before income tax were smaller, reflecting the recording of gain on sales of non-current assets the previous year Unit: 100 million yen FY2021 FY2020 Change Core operating income 71.1 63.5 +7.5 Other
Slide 16: Changes to Statement of Financial Position
Changes to Statement of Financial Position Balance sheet shrank due to repayment of borrowings in preparation for tightness of financing conditions due to COVID-19 Assets/liabilities and equity Factors Contributing Unit: 100 million yen ¥204.9 B (down ¥20 B from the end of FY2020) to Changes Equity
Slide 17: Changes in Cash Flow
Changes in Cash Flow Unit: 100 million yen FY2021* FY2020* Change Cash flows from operating activities (A) 89 73 15 Cash flows from investing activities (B) (58) 1 (59) Free cash flows (A+B) 31 75 (43) Cash flows from financing activities (308) 105 (414) * For first six months of each fiscal year re
Slide 18: 2. Second-Half Initiatives/Direction
2. Second-Half Initiatives/Direction 18
Slide 19: Domestic Processed Food Business: Second-half Initiatives
Domestic Processed Food Business: Second-half Initiatives Implement initiatives to encourage the intake of vegetables from multiple perspectives through the “Let’s Eat vegetables” campaign and seek to expand sales by steadily tapping into the continually growing interest in health and immunity 10.29
Slide 20: Domestic Processed Food Business: Second-half Initiatives
Domestic Processed Food Business: Second-half Initiatives Implement initiatives to encourage the intake of vegetables from multiple perspectives through the “Let’s Eat vegetables” campaign and seek to expand sales by steadily tapping into the continually growing interest in health and immunity Secon
Slide 21: Domestic Agriculture Business: Second-half Initiatives
Domestic Agriculture Business: Second-half Initiatives Ensure profitability on a full-year basis by stepping up promotions linked to the “Let’s Eat Vegetables” campaign and increasing productivity Second-half initiatives (1) Increase product exposure opportunities by planning appearances of Remi Hir
Slide 22: International Business: Second-half Initiatives
International Business: Second-half Initiatives Steadily turn recovery of demand in food services market into revenue and seek sustainable profit growth Primary processing - HIT aims for production of this season’s crop on an appropriate scale - Strengthen management of earnings by customer to gener
Slide 23: 3. Full-Year Consolidated Results Forecasts for FY2021
3. Full-Year Consolidated Results Forecasts for FY2021 23
Slide 24: FY2021 Full-Year Results Forecasts
FY2021 Full-Year Results Forecasts Raised results forecasts mainly due to recovery of food service demand in the U.S. Revenue Core Operating Income FY2021 Revised FY2021 Revised FY2021 FY2020 FY2021 FY2020 Forecast Forecast Unit: 100 million yen Vs. Initial Initial Vs. Initial Initial YoY Result YoY
Slide 25: 4. Preparing for Third Mid-Term Management Plan
4. Preparing for Third Mid-Term Management Plan 25
Slide 26: Preparing for Third Mid-Term Management Plan
Preparing for Third Mid-Term Management Plan During the Second Mid-Term Management Plan Period, revenue and core operating income both showed slower growth Looking ahead to the Third Mid-Term Management Plan, revenue growth is an issue which needs to be addressed 800 1,845 1,808 1,830 1,880 8.0% Cha
Slide 27: Laying Foundations for Next Growth Phase (1)
Laying Foundations for Next Growth Phase (1) DX is essential for the creation of new customer contact points and new business models Defensive (Mode 1) phase is over Offensive (Mode 2) DX initiatives to date Promotion of DX in preparation for Third Mid-Term - Launched initiatives in 2016 with the ai
Slide 28: Laying Foundations for Next Growth Phase (2)
Laying Foundations for Next Growth Phase (2) Actively pursue open innovation and use solutions to social problems as opportunities for further growth Agricultural Realization of sustainable Expansion into plant-based revitalization/Regional agriculture food domain revitalization Sobetsu Agri-Foods C
Slide 29: Laying Foundations for Next Growth Phase (3)
Laying Foundations for Next Growth Phase (3) Focus on environmental issues and pursue sustainable business, recognizing that since “nature” is the source of Kagome's products, protection of the environment is essential for our business survival Revision of CO2 emissions goal Initiatives to reduce pl
Slide 30: Finally… Growing consumer interest in a healthy diet and increasing immunity
Finally… Growing consumer interest in a healthy diet and increasing immunity Survive in the “food and health” domain through the power of vegetables “Become a strong company 2025 Goal that can achieve sustainable growth resolving social issues through foods.” 2025 Transform from a “tomato company” L