Meiji Holdings Co., Ltd. · TSE:2269

Meiji — FY2013/3 Earnings Presentation

32 slides from Meiji's earnings presentation, May 21, 2013

  1. Slide 1: Financial Results for FYE 2013/3

    Financial Results for FYE 2013/3 2013.05.21

  2. Slide 2: Contents

    Contents 1. Outline of FYE 2013/3 Financial Results and Our Initiatives for Achieving 2. Overviews of FYE 2013/3 Financial Results and FYE 2014/3 Business Plan  The forward-looking statements described in this material, such as business forecasts, are based on information available at the time of t

  3. Slide 3: Outline of FYE 2013/3 Financial Results and Our Initiatives for Achieving

    1. Outline of FYE 2013/3 Financial Results and Our Initiatives for Achieving 3 | 2013.05.21 | Copyright © 2013 Meiji Holdings Co., Ltd. All rights reserved.

  4. Slide 4: Business plan for FYE 2013/3

    ＨＤ Business plan for FYE 2013/3 (billions of yen) FYE FYE Objectives of the plan 2012/3 2013/3  Food segment: YoY Results Plan change Recover from FYE 2012/3 Meiji HD Net sales 1,109.2 1,125.0 +1.4% performance, which was [consolidated] Operating damaged by the Great East income 20.1 24.0 +18.9% Ja

  5. Slide 5: FYE 2013/3 Outline of consolidated results

    ＨＤ FYE 2013/3 Outline of consolidated results (billions of yen) FYE FYE 2013/3 2012/3 YoY change Change vs. plan Results Plan Results (Rate) (Amount) (Rate) (Amount) Meiji HD Net sales 1,109.2 1,125.0 1,126.5 +1.6% +17.2 +0.1% +1.5 [consolidated] Operating income 20.1 24.0 25.8 +28.1% +5.6 +7.7% +1.

  6. Slide 6: FYE 2013/3 Outline of results by segment

    ＨＤ FYE 2013/3 Outline of results by segment Segment/business Key points Results of Dairy business (especially yogurt and probiotic yogurt products) drove the Food entire segment  Sales of yogurt and probiotic yogurt products greatly outstripped both the plan and the previous Dairy year.  Improved

  7. Slide 7: Medium-Term Management Plan

    Medium-Term Management Plan Basic policies Targets Higher profitability and strategic investments for FYE 2015/3 future growth Net sales 1.19 trillion yen 1. Strengthen and expand existing businesses Op. income 40.0 billion yen (growth and priority businesses) ROE 7% 2. Foster growth businesses (new

  8. Slide 8: FYE 2014/3 Consolidated financial forecasts

    ＨＤ FYE 2014/3 Consolidated financial forecasts (■Net sales: ¥ billion) （■Op. income: ¥ billion) Management Integration Points 1,400 70 Business Reorganization 1,190.0  Focus on “higher profitability” and 1,140.0 1,200 1,106.6 1,111.0 1,109.2 1,126.5 60 “strategic investments,” and boost 1,000 50 op

  9. Slide 9: Strategies in Food Segment

    Food Strategies in Food Segment  Structural reform for higher profitability  Dairy: Establish an overwhelming dominance in yogurt market  Confectionery: Higher profitability and enhance product appeal  Healthcare and Nutritionals: Promote growth strategies and higher profitability  Foster overs

  10. Slide 10: Structural reform for higher profitability

    Food Structural reform for higher profitability FYE 2013/3 From FYE 2014/3 Dairy Dairy All food products Fresh dairy Fresh dairy consolidated under category of Processed dairy Processed foods “processed foods” food products Confectionery Confectioneries Confectionery Confectioneries Dessert products

  11. Slide 11: Dairy business: Establish an overwhelming dominance in yogurt market

    Food Dairy business: Establish an overwhelming dominance in yogurt market Sales and market size for yogurt products Strengthen yogurt business (□Our sales: ¥ billion) (◆Market size: ¥ billion）  Rapid increase in our probiotic 180 400 yogurt sales stimulated the expansion of market 160 350  Expand

  12. Slide 12: Confectionery business: Higher profitability and enhance product appeal

    Food Confectionery business: Higher profitability and enhance product appeal Higher profitability Enhance product appeal Reform income and expenditure In confectioneries, focus on long- structure to strengthen business selling products foundation  Expand our long-selling products  Increase the pro

  13. Slide 13: Healthcare and Nutritionals business: Promote growth strategies and higher profitability

    Food Healthcare and Nutritionals business: Promote growth strategies and higher profitability Promote growth strategies Expand market share for main brands and contribute to “Build healthy bodies” Sports nutrition  Sports nutrition: “VAAM” & “SAVAS”  Beauty supplements: Launch new products in “Ami

  14. Slide 14: Foster overseas businesses – Expansion in Asia and China

    Food Foster overseas businesses – Expansion in Asia and China China Asia  Start up of fresh dairy business  CP-Meiji (Thailand) [equity method applicable] [Non-consolidated]  Production and sales of milk and yogurt  Now applying for production  Sales target for 2015: ¥20 billion approval  Buil

  15. Slide 15: Improve profitability of Food segment

    Food Improve profitability of Food segment (billions of yen) Changes in Operating Income FYE 2012/3 Op. income 11.4 Raw material -0.7 procurement FYE 2013/3  Increase in profits was driven by the approach Business growth “business growth,” particularly favorable +5.6 growth of probiotic yogurt prod

  16. Slide 16: Strategies in Pharmaceuticals Segment

    Pharma Strategies in Pharmaceuticals Segment  Maintain favorable trends in domestic ethical pharmaceuticals business  Expand generic drugs business  Strengthen R&D Pipeline  Invest in R&D expenses effectively and promote development (■Net sales: ¥ billion) (■Op. income: ¥ billion)  Expand Overs

  17. Slide 17: Maintain favorable trends in domestic ethical pharmaceuticals business

    Pharma Maintain favorable trends in domestic ethical pharmaceuticals business Consolidated Net Sales of Pharmaceuticals Segment Maximize sales and profits with our (billions of yen) original strategy called “fusion strategy 160.0 NHI drug price of Specialty & Generics” revisions 140.0 140.0 135.0 12

  18. Slide 18: Expand generic drugs business

    Pharma Expand generic drugs business GE shares in domestic market / Our GE sales  Launch GE drugs, of which medical need (■Our GE sales: ¥ billion) (◆GE share in market: %) is high and market scale is large, in 40 40 addition to drugs for infectious and CNS Sales of 47 active diseases ingredients a

  19. Slide 19: Strengthen R&D Pipeline

    Pharma Strengthen R&D Pipeline FYE 2013/3 FYE 2014/3 FYE 2015/3 Infectious diseases MEIACT - Higher dosage for children Approved ME1111 [Antionychomycosis] Released on Apr. 18, 2013 PhaseⅠ (U.S.) Central nervous system disorders DIACOMIT - Biocodex SA (France) [Antiepileptic drug] Approved ME2125 (S

  20. Slide 20: Invest in R&D expenses effectively and promote development

    Pharma Invest in R&D expenses effectively and promote development Trend in operating income before substraction of R&D expenses (billions of yen) ■ R&D expenses ■ Op. income 25.0 22.6  R&D expenses are increasing because 21.3 21.4 products under development move up 19.5 20.4 20.0 to the next phase

  21. Slide 21: Expand Overseas business

    Pharma Expand Overseas business  Establish a global production structure and increase overseas sales Russia: Russia: Advance Advance life-cycle life-cycle management management Establish Establish business business foundation foundation through through of of “MEIACT” “MEIACT” aa tie-up tie-up with

  22. Slide 22: Summary: Medium-Term Management Plan

    ＨＤ Summary Medium-Term Management Plan Basic policies  Expand priority businesses Profitability Higher profitability and strategic  Minimize impact on profits by investments for future growth flexibly coping with economic 1. Strengthen and expand existing environment businesses (growth and priorit

  23. Slide 23: Overviews of FYE 2013/3 Financial Results and FYE 2014/3 Business Plan

    2. Overviews of FYE 2013/3 Financial Results and FYE 2014/3 Business Plan 23 | 2013.05.21 | Copyright © 2013 Meiji Holdings Co., Ltd. All rights reserved.

  24. Slide 24: FYE 2013/3 Overview of results by segment

    ＨＤ FYE 2013/3 Overview of results by segment (billions of yen) FYE 2013/3 Results YoY Change Vs. Plan Points Net sales 1,001.5 +1.5% (+15.2) +0.1% (+0.7)  Food segment: Food Op. income 19.3 +68.7% (+7.8) +4.2% (+0.7)  (Dairy) Yogurt was the driving force. Both sales and profits rose in spite of Ne

  25. Slide 25: FYE 2013/3 Analysis of Consolidated Operating Income

    ＨＤ FYE 2013/3 Analysis of Consolidated Operating Income (billions of yen) Results (By segment) Plan Food Pharma Other (*1) Food: Cost reduction in 11.4 8.1 0.6 20.1 FYE 2012/3 20.1 distribution and production Due to increased/decreased Pharma: Cost reduction +12.2 +6.9 ― +17.9 sales +19.1 (*2) in pr

  26. Slide 26: FYE 2013/3 Overview of Consolidated Results

    ＨＤ FYE 2013/3 Overview of Consolidated Results (billions of yen) FYE FYE 2013/3 2012/3 YoY change Change vs. plan Results Plan Results (Rate) (Amount) (Rate) (Amount) Meiji HD Net sales 1,109.2 1,125.0 1,126.5 +1.6% +17.2 +0.1% +1.5 [consolidated] Operating income 20.1 24.0 25.8 +28.1% +5.6 +7.7% +1

  27. Slide 27: Business Plan for FYE 2014/3

    ＨＤ Business Plan for FYE 2014/3 (billions of yen) FYE 2014/3 1st half 2nd half Full-year YoY change YoY change YoY change Meiji HD Net sales 565.0 +0.7% 575.0 +1.7% 1,140.0 +1.2% [consolidated] Operating income 12.0 +19.4% 17.0 +7.5% 29.0 +12.1% Ordinary income 13.0 +10.2% 17.0 -1.9% 30.0 +3.0% Net

  28. Slide 28: Business Plan for FYE 2014/3 ~ By business in Food Segment

    ＨＤ Business Plan for FYE 2014/3 ~ By business in Food Segment (billions of yen) FYE 2014/3 1st half 2nd half Full-year YoY change YoY change YoY change Dairy Net sales 308.4 -0.6% 300.7 -0.4% 609.1 -0.5% Operating income 8.9 +8.3% 9.4 -6.8% 18.4 -0.0% Confectionery Net sales 95.5 -1.7% 100.0 +0.8% 1

  29. Slide 29: FYE 2014/3 Analysis of Consolidated Operating Income

    ＨＤ FYE 2014/3 Analysis of Consolidated Operating Income (billions of yen) Plan (By segment) Food Pharma Other FYE 2013/3 (Results) 25.8 19.3 6.4 0.0 Due to increased/decreased +8.4 +4.7 +3.7 ― sales Cost reduction +5.9 +5.0 +0.9 ― Procurement costs -5.5 -5.5 0.0 ― of raw materials Change in selling

  30. Slide 30: Financial Strategies

    ＨＤ Financial Strategies (billions of yen) Total assets as of March 2012: ¥ 749.9 bn Total assets as of March 2013: ¥ 785.5 bn Total current assets Total liabilities Total current assets Total liabilities 322.5 451.4 341.2 464.9 Total investment and Total investment and other fixed assets Total net a

  31. Slide 31: Financial Strategies

    ＨＤ Financial Strategies (billions of yen) FYE 2012/3 FYE 2013/3 FYE 2014/3 YoY Results Plan Results change Plan Capital expenditures 38.3 43.7 37.6 -0.7 61.3 161.7 Depreciation and amortization 40.8 41.7 40.8 ±0.0 41.0 126.5 R&D expenses 23.8 25.4 26.2 +2.4 26.3 73.5 Free cash flows -13.7 3.0 11.1 +

  32. Slide 32: Copyright © 2013 Meiji Holdings Co., Ltd. All rights reserved.

    32 | 2013.05.21 | Copyright © 2013 Meiji Holdings Co., Ltd. All rights reserved.

Meiji Holdings — FY2013/3 Earnings Presentation on 6ix