Ezaki Glico Co., Ltd. · TSE:2206
Ezaki Glico — FY2020 Earnings Presentation
34 slides from Ezaki Glico's earnings presentation, Feb 26, 2021
Slide 1: Glico Group Financial Results for the Fiscal Year Ended December 31, 2020
[Notes of caution] This documents is an English translation of the Japanese original. In the event of any differences or inconsistencies between the Japanese and English versions, the Japanese language version shall take precedence. ＜Full Version＞ Glico Group Financial Results For the Fiscal Year En
Slide 2: Contents
Contents I. FYE December 2020 Earnings Report P. 3 – 20 II. FYE December 2021 Earnings Forecast P. 21 – 28 (Supplemental Materials) P. 29 – 33 ©2021 Ezaki Glico Co., Ltd. All Rights Reserved 2
Slide 3: I. FYE December 2020 Earnings Report
I. FYE December 2020 Earnings Report ©2021 Ezaki Glico Co., Ltd. All Rights Reserved 3
Slide 4: Summary of FYE December 2020 Performance
Summary of FYE December 2020 Performance １． Consolidated net sales fell by -2.7% YoY due to continuing struggles amid the COVID-19 pandemic in Japan and overseas. Decreases in revenues accelerated in the fourth quarter, falling by -5.8% YoY. In Japan, the Ice Cream business was strong but revenues i
Slide 5: Effects of the COVID-19 Pandemic in Japan and Overseas
Effects of the COVID-19 Pandemic in Japan and Overseas Japan Overseas In the first half, demand from tourists and inbound China visitors decreased dramatically as a result of the Earnings decreased in the first half due to the state of emergency declaration. Increases in effects of city lockdowns. I
Slide 6: Ezaki Glico's Initiatives to Cope with COVID-19
Ezaki Glico’s Initiatives to Cope with COVID-19 Providing confectioneries and beverages free of charge Providing hygienic support to cope with COVID-19 and to children, medical personnel, and accommodations for employment support in the Republic of Ghana minor cases Using the “Dotonbori Glico Sign”
Slide 7: Status of Consolidated Performance
Status of Consolidated Performance Net sales: Both domestic and overseas businesses had decreases, and a YoY decrease of -2.7% was posted for the entire consolidated Group. Operating income: Increases were posted for both domestic and overseas businesses. In Japan, an increase of +13.9% that resulte
Slide 8: Status of Operating Income
Status of Operating Income (Unit: 100 million yen) （Following adjustment） FYE Dec. 2020 FYE Dec. 2019 Results Sales Results Sales (Jan - Dec) Ratio (Jan - Dec) Ratio Net sales 3,537 100.0% 3,440 100.0% Cost of sales 1,860 52.6% 1,816 52.8% Gross profit 1,677 47.4% 1,624 47.2% Freight and charges 313
Slide 9: Factors of Increases (Decreases) in Operating Income
Factors of Increases (Decreases) in Operating Income Change from previous period In Japan, although decreased net sales, “fluctuation in composition of sales product varieties and other,” and other items were factors that decreased operating income, lower sales promotion ratio/advertising expenses,
Slide 10: Status of Net Sales by Segment
Status of Net Sales by Segment Although Ice Cream was performance driver, other segments struggled, and as a result the domestic segment posted a year-on-year decrease of -2.4%. The overseas segment posted a year-on-year decrease (-1.9% based on local currencies) as a result of worsening market cond
Slide 11: Status of Operating Income by Segment
Status of Operating Income by Segment The domestic segment posted an increase of 800 million yen YoY that resulted from suppressed SG&A expenses due to the COVID-19 pandemic. The overseas segment posted an increase of 1.4 billion yen that was attributable to lower ratio of costs of sales, etc. (Unit
Slide 12: Domestic Business: Situation by Category
Domestic Business: Situation by Category *1 Net sales Category (% of previous FYE Dec. 2020 Results period) The mainstay product “Pocky” posted a decrease resulting from decreased sales, 44.5 billion yen Chocolate which included items sold as souvenirs, as a result of the COVID-19 pandemic. (ー7.2%)
Slide 13: Domestic Business: Situation by Category (Chocolate/Cookies)
Domestic Business: Situation by Category (Chocolate/Cookies) Chocolate category Chocolate Market Result and Forecasted Net Sales Net Sales by Brand (Intage SRI) - Chocolate category - (When FYE Dec. 2018 net sales are set as 100) Unit: 100 Unit: 100 FYE Dec. '18 FYE Dec. '19 FYE Dec. '20 million yen
Slide 14: Domestic Business: Situation by Category (Ice Cream/Yoghurt)
Domestic Business: Situation by Category (Ice Cream/Yoghurt) Ice Cream category Ice Cream Market Result and Forecasted Net sales Net Sales by Brand (Intage SRI) - Ice Cream category - (When FYE Dec. 2018 net sales are set as 100) Unit: 100 +4.4% Unit: 100 FYE Dec. '18 FYE Dec. '19 FYE Dec. '20 milli
Slide 15: Domestic Business: Situation by Category (Drinking Milk/Infant Formula)
Domestic Business: Situation by Category (Drinking Milk/Infant Formula) Drinking Milk category Drinking Milk Market Result and Forecasted Net sales Cafe Ole Net Sales (Intage SRI) - Drinking Milk category - (When FYE Dec. 2018 net sales are set as 100) Unit: 100 Unit: 100 million yen +3.9% million y
Slide 16: Overseas Business: Region-Specific Net Sales and Operating Income
Overseas Business: Region-Specific Net Sales and Operating Income ◆China (Unit: 1 million CNY) FYE Dec. 2019 FYE Dec. 2020 Results Forecast Results Change from Change from (Jan - Dec) (Jan - Dec) (Jan - Dec) Previous Period Forecast Net sales 1,652 1,943 1,706 +3.3% －12.2% Operating income 99 135 15
Slide 17: China
China In 2020, China’s cookie market shrank by -4.1% New “Pocky” products introduced in the second half compared to the previous year. The market performed (Hazelnut Crush Pocky) worse in the second half than the first half and did not recover to the pre-COVID-19 pandemic level. Glico’s net sales po
Slide 18: China: Online
China: Online “Huaguo Pejoy” set sold for Double 11 In 2020, the online market in China’s cookie market grew +7.2% compared to the previous year. Glico’s online business expanded by +39.7% compared to the previous year. Glico’s online net sales ratio rose to 11.8%. Traffic increased by building awar
Slide 19: ASEAN
ASEAN Net sales fell in the second half of FY2020 as customer numbers decreased in both modern trade and traditional trade. This was due in part Net sales in ASEAN to the cancellation of events that resulted from the closure of shopping (Includes powdered milk in Vietnam) malls amid a renewed increa
Slide 20: U.S.A.
U.S.A. The FY2020 net sales of Ezaki Glico USA, Glico’s local subsidiary in the U.S. confectionery business, increased by +11.8% year on year to 71 million USD based on local currencies. In the U.S. supermarket segment, placement on ordinary confectionery product shelves began at Walmart. Distributi
Slide 21: II. FYE December 2021 Earnings Forecast
II. FYE December 2021 Earnings Forecast ©2021 Ezaki Glico Co., Ltd. All Rights Reserved 21
Slide 22: Consolidated Earnings Forecast
Consolidated Earnings Forecast Net sales: Although we forecast a double-digit year-on-year increase by overseas business, we forecast a +1.7% year-on-year increase for the consolidated Group, as a continuing severe situation is anticipated for domestic business. Operating income: We forecast increas
Slide 23: Basic Policy for FY2021
Basic Policy for FY2021 Continue the Basic Policy for FY2018 to FY2020 in FY2021. * Improve competitiveness through selection and concentration for management resources (1) Accelerate growth with the global involvement of the Health business. → Dig deeper into health demand and accelerate habitual c
Slide 24: Operating Income Forecast
Operating Income Forecast (Unit: 100 million yen) FYE Dec. 2020 FYE Dec. 2021 Results Sales Forecast Sales (Jan - Dec) Ratio (Jan - Dec) Ratio Net sales 3,440 100.0% 3,500 100.0% Cost of sales 1,816 52.8% 1,835 52.4% Gross profit 1,624 47.2% 1,665 47.6% Freight and charges 315 9.2% 314 9.0% Sales pr
Slide 25: Factors of Increases (Decreases) in Operating Income
Factors of Increases (Decreases) in Operating Income Change from previous period Domestically, although SG&A expenses are expected to increase, higher income is forecasted overall owing to cost reductions from “fluctuation in composition of sales product varieties and other,” increased income from a
Slide 26: Net Sales Forecast by Segment
Net Sales Forecast by Segment In domestic business, we forecast an increase primarily in Health of the Other segment but little change overall. We forecast a double-digit increase in the Overseas segment. (Unit: 100 million yen) FYE Dec. 2020 FYE Dec. 2021 Results Forecast Change from (Jan - Dec) (J
Slide 27: Operating Income Forecast by Segment
Operating Income Forecast by Segment We forecast increases for both domestic and overseas businesses. We forecast a +500 million yen year-on-year increase for the entire consolidated Group. (Unit: 100 million yen) FYE Dec. 2020 FYE Dec. 2021 * Results Forecast Change from (Jan - Dec) (Jan - Dec) * p
Slide 28: Overseas Business: Region-Specific Net Sales and Operating Income Forecast
Overseas Business: Region-Specific Net Sales and Operating Income Forecast ◆China (Unit: 1 million CNY) FYE Dec. 2020 FYE Dec. 2021 Results Forecast Change from (Jan - Dec) (Jan - Dec) Previous Period Net sales 1,706 1,949 +14.3% Operating income 151 182 +20.9% ◆ASEAN * （Unit: 1 million USD） FYE Dec
Slide 29: TTM Currency Rate
Supplemental Materials TTM Currency Rate USD EUR THB CNY 100KRW 100IDR 3/31 112.19 119.79 3.26 16.29 10.04 0.84 6/30 112.00 127.97 3.29 16.49 9.81 0.84 2017 9/30 112.73 132.85 3.38 16.96 9.89 0.84 12/31 113.00 134.94 3.45 17.29 10.62 0.84 3/31 106.24 130.52 3.40 16.92 9.99 0.78 6/30 110.54 127.91 3.
Slide 30: Net Sales by Category
Supplemental Materials Net Sales by Category (Unit: 100 million yen) FYE Dec. 2020 FYE Dec. 2021 Segment Category Results Forecast Change from (Jan - Dec) (Jan - Dec) Previous Period Chocolate (including “Pocky”) 445 449 +0.9% Cookies (including “Pretz”) 240 246 +2.5% Confectioneries and Food produc
Slide 31: Status of Balance Sheet
Supplemental Materials Status of Balance Sheet Net worth ratio: 62.0% (end of December 2019) → 65.2% (end of December 2020) (Unit: 100 million yen) Assets End Dec. End Dec. Vs. end Major account items '19 ‘20 Dec. '19 Cash and deposits 996 979 ー17 Current assets 807 756 Notes and accounts receivable
Slide 32: Status of Cash Flows
Supplemental Materials Status of Cash Flows (Unit: 100 million yen) FYE Mar. 2017 FYE Mar. 2018 FYE Mar. 2019 FYE Dec. 2019 FYE Dec. 2020 Results Results Results Results Results Cash flows from operating 296 315 203 173 172 activities Cash flows from investing activities － 141 － 250 － 87 － 90 － 124
Slide 33: Capital Investments, Depreciation, and R&D Expenditures
Supplemental Materials Capital Investments, Depreciation, and R&D Expenditures (Unit: 100 million yen) FYE Dec. 2019 FYE Dec. 2020 FYE Dec. 2020 FYE Dec. 2021 Results Forecast Results Forecast Capital investment total 163 133 109 113 Confectioneries and Food Products 36 46 28 28 Ice Cream 34 32 20 2
Slide 34: Notes of Caution
[Notes of caution] *Current Glico and Glico Group plans, forecasts, and initiatives indicated in these materials reflect determinations made based on information available at the present time. As such, this information may include major risks and uncertainties. Please note that actual performance ma