Slide 1: Financial Results for year ending November, 2018
Financial Results for year ending November, 2018 and financial forecast for year ending November, 2019
Slide 2: Contents
Contents 1 Consolidated Financial Results for the year ending November 30,2018 P4 and forecasts for the year ending November 30,2019 2 Business Information P13 3 New Corporate Business Plan “NEXT-LJ2021” P26 Reference information The risk of foreign exchange fluctuations on Lacto Japan P33 and
Slide 3: Financial Highlights-1
Financial Highlights-1 Financial Summary for FY2018/11 For the year ending November 2018, Lacto Japan reached record highs in net sales, ordinary income, and net income. Consolidated Net sales Lacto Japan attained record highs in both consolidated net sales and sales volumes. Further, in indiv
Slide 4: Financial Highlights-2
Financial Highlights-2 Future policy The medium-term business plan of "NEXT-LJ2020" and forecasts for FY2019/11 Upon implementation of our medium-term business plan announced last year under the title of "NEXT-LJ2020,” the business of Lacto Japan has been progressing successfully, and has now be
Slide 5: Consolidated Financial Results for FY2018 and forecasts for FY2019
1 Consolidated Financial Results for the year ending November 30,2018 and forecasts for the year ending November 30,2019 4 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved. Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 6: Consolidated Financial Results for the year ending November 30, 2018
1 Consolidated Financial Results for the year ending November 30,2018 5 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 7: Consolidated Financial Results for year ending November 30, 2018
Consolidated Financial Results for year ending November 30, 2018 (Millions of Yen) FY2018/11 FY2017/11 Actual Actual Difference Ratio（％） Net Sales 101,334 115,440 +14,105 +13.9 Ordinary income 2,522 2,612 +90 +3.6 Ordinary income ratio to net sales(%) 2.5 2.3 (0.2) - Foreign exchange fluctuation on
Slide 8: Analysis by Consolidated Net sales and Consolidated Ordinary income
Analysis by Consolidated Net sales and Consolidated Ordinary income Net sales increased due to volume expansion; and, excluding the effect of currency fluctuations, impact ordinary income increased. Consolidated net sales Consolidated ordinary income Sales price Forex Volume Cost ＋4,364 (315 ) 1
Slide 9: Net Sales and Sales Volume by Business
Net Sales and Sales Volume by Business Sales expansion for Dairy Ingredients and Cheese, Asia business and others. ▌Net sales by Business (Millions of Yen) FY2017/11 FY2018/11 Difference Ratio（％） Dairy Ingredients and Cheese 70,019 85,290 +15,270 +21.8 Meat Products 15,253 12,576 (2,677) (17.6) Asia
Slide 10: Consolidated Balance Sheets
Consolidated Balance Sheets （Millions of Yen） 30-Nov-2017 30-Nov-2018 Difference Current Assets 43,491 46,438 2,947 Cash and 4,929 923 cash equivalents 4,006 Trade notes and 15,873 (1,325) accounts receivable 17,198 ▌ Main Factor Inventories 21,446 25,216 3,769 – Increase of inventory Others 839 419
Slide 11: Consolidated Cash Flows
Consolidated Cash Flows （Millions of Yen） FY2017/11 FY2018/11 Difference Cash flows from operating activities (5,048) 356 +5,404 ▌ Main Factor Cash flows from investing activities (137) (863) (726) – Improvement of cash flows from operating activities Cash flows from financing activities 2,384 989 (
Slide 12: Consolidated forecasts for the year ending November 30, 2019
2 Consolidated forecasts for the year ending November 30, 2019 11 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 13: Consolidated forecasts for the year ending November 30, 2019
Consolidated forecasts for the year ending November 30, 2019 (Millions of Yen) FY2019/11 FY2018/11 Actual Forecast Difference Ratio（％） Net Sales 115,440 125,200 9,759 +8.5 Ordinary income 2,612 2,800 187 +7.2 Ordinary income ratio to net sales(%) 2.3 2.2 (0.1) - Foreign exchange fluctuation on ordin
Slide 14: Business information
2 Business information 13 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved. Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 15: Business Environment
1 Business Environment 14 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 16: Global Business Environment
Business Environment 1 Global Business Environment Global business environment for FY2018, with reference being made to raw milk production in FY2017 Europe China United States There has been an increase in There has been an increase in There has been an increase in EU raw milk production; and impor
Slide 17: The international market condition
Business Environment 2 The international market condition International market conditions were highly volatile from 2007 to 2009; however, comparatively stable conditions are now evident; with stabilization of prices of milk products and ingredients in 2018, albeit accompanied by fluctuating butter
Slide 18: Summary of financial results for 2018 and Outlook by business for 2019
2 Summary of financial results for 2018 and Outlook by business for 2019 17 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 19: Dairy Ingredients and Cheese 1
Dairy Ingredients and Cheese1 Net Sales and Sales Volume Summary of Financial results FY Net Sales 85.2 billion yen (+21.8%) 2017 FY2018/11 FY2019/11 There has been an increase in ALIC's bit framework resulting from raw /11 milk product insufficiency in Japan, with high-gain shares being realize
Slide 20: Dairy Ingredients and Cheese 2
Dairy Ingredients and Cheese2 Net Sales and Sales Volume initiatives toward growth FY Expansion of business to meet an increased need for dependable 2017 FY2018/11 FY2019/11 /11 supplies of imported milk ingredients; by continuing to strengthen business relations with existing suppliers while es
Slide 21: Domestic demand for dairy products remains high
Business environment （Japan） Domestic demand for dairy products remains high Although domestic production trends for raw milk continue to be downward, in contrast, consumption of milk and milk products remains high. Although, domestic demand for milk as a drink bottomed out as of 2015, outlook for d
Slide 22: Meat Products
Meat Products Net Sales and Sales Volume Summary of Financial results Net Sales 12.5 billion yen (-17.6%) FY Decline in sales responsive to a decrease in supply resulting from 2017 FY2018/11 FY2019/11 /11 changes in the purchasing policy of some customers; a fall in the domestic pork market in t
Slide 23: Increase in pork imports
Business environment （Japan） Increase in pork imports Pork imports in 2018 reached record highs. For the first time, the amount of imported pork products exceeded those of domestic pork products across the estimated distribution volume (range) in the market. ■Pork demand (Supply volume) and ■Product
Slide 24: Increase in pork consumption
Business environment （Japan） Increase in pork consumption An increase in consumption of pork per person, has resulted due to a favorable demand for table meat. While, consumption of pork remains comparatively high in Europe and America, a further increase in consumption in Japan in anticipated. ■Con
Slide 25: Asia Business (Dairy Ingredients)
Asia Business (Dairy Ingredients) Net Sales and Sales Volume Summary of Financial results Net Sales 14.5 billion yen (+9.2%) FY An increase in demand within the Asian milk product market resulting from 2017 FY2018/11 FY2019/11 /11 population growth and Westernization of food habits, enhanced by
Slide 26: Asia Business (Cheese manufacture and sales)
Asia Business (Cheese manufacture and sales) Net Sales and Sales Volume Summary of Financial results Net Sales 2.1 billion yen (+10.3%) FY 2017 FY2018/11 FY2019/11 Expand the sales routes and increase sales by taking advantage of the /11 Westernization of food and demand of cheese in Southeast A
Slide 27: Corporate Business Plan NEXT-LJ2021
3 Corporate Business Plan “NEXT-LJ2021” 26 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved. Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 28: New Corporate business plan NEXT-LJ2021 targets
New Corporate business plan”NEXT-LJ2021” Reached the goals set in “NEXT-LJ2020” in the first year and updated the Corporate business plan into “NEXT-LJ2021”. FY2018.11 Actual FY2021.11Target Net Sales 115.4billion Net sales 145.0billion(+26%) Ordinary Income 2.61billion Ordinary Income 3.4billion(+3
Slide 29: New Corporate Business Plan NEXT-LJ2021
New Corporate Business Plan “NEXT-LJ2021” Continue with Basic Principle and Main Project Lacto Japan provides health and eating pleasure for consumers as Global Food Professional Company Build next ■Eyeing business tie-up and M&A, generation build new businesses with potential business synergies wit
Slide 30: Maximize the business environment and achieve growth
Goals in NEXT-LJ2021: Maximize the business environment and achieve growth Attain further growth accompanying changes in the business environment taking place as a result of the introduction of the new free trade agreements: TPP11 and Japan-EU EPA. The main features of TPP11 and Japan-EU EPA Increas
Slide 31: Goals in NEXT-LJ2021: Growth of Asia business
Goals in NEXT-LJ2021: Growth of Asia business Attain further growth of dairy ingredients sales and cheese production businesses in response to the increase of demand for dairy products and cheese in Asia. Net sales of Asia business Asia Business(Cheese manufacture and sales) Asia Business(Dairy Ingr
Slide 32: Shareholders return
Shareholders return Strive for stable dividends We continue to invest in the growth of our business and to enrich our own capital to maintain our augmented business foundations towards enhanced profitability. Meanwhile, we value the importance of shareholder returns in our overall business strategy,
Slide 33: What Lacto Japan values for the 20th anniversary
What Lacto Japan values for the 20th anniversary The objective of Lacto Japan is to create values for the stakeholders and society Challenges in Investment (Input) the society Creation of value (Output) Pursuing values as a Japan Global Food ･Decrease in raw Suppliers Trading Advancing milk producti
Slide 34: Reference information: The risk of foreign exchange fluctuation
Reference information The risk of foreign exchange fluctuation 33 Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved. Copyright © 2019 Lacto Japan Co., Ltd. All rights reserved.
Slide 35: The risk of foreign exchange fluctuation and separate accounting treatment
The risk of foreign exchange fluctuation in Lacto Japan and separate accounting treatment ▌In principle, Lacto Japan's business model hedges risks of foreign exchange fluctuations. Under Lacto Japan’s Basic Business model, Lacto Japan enters into sales contracts with domestic customers at the same t
Slide 36: Foreign exchange fluctuation
Foreign exchange fluctuation Trends of Foreign Exchange (Spot rate of Tokyo stock market) Source : Nikkei QUICK FY2014.11 FY2015.11 FY2016.11 FY2017.11 FY2018.11 130 120 110 Foreign exchange loss 100 for FY16/11 90 Foreign exchange Profit for Foreign exchange FY14/11 and FY15/11 Profit for FY17/11 8
Slide 37: Model of business flow
Model of business flow (Impact of foreign exchange fluctuation in separate accounting) Foreign exchange fluctuation have no impact on actual profit under our basic business model. 2~3month 2~3month (2)Shipment (3)Purchase settled Product sold during the (1)Contract signed (4)Products sold same finan