Ezaki Glico Co., Ltd. · TSE:2206
Ezaki Glico — FY2018 Earnings Presentation
40 slides from Ezaki Glico's earnings presentation, May 24, 2018
Slide 1: Glico Group Financial Results
Glico Group Financial Results For the Fiscal Year ended March 31,2018 May 24, 2018 Ezaki Glico Co., Ltd. Securities Code - 2206 <Inquiries> Ezaki Glico Co., Ltd. Shinichi Takahashi : General Manager of Finance & Accounting Division, Also in charge of: Stock & IR TEL : 06-6130-6930 E-mail : ir-divisi
Slide 2: Contents
Contents I. FYE March 2018 Earnings Report P. 3-15 II. FYE March 2019 Full-Year Earnings Forecast P. 16-30 Ⅲ. Overview of Mid-Term Business Plan P. 31-36 (Supplemental Materials) P. 37-39 2
Slide 3: I. FYE March 2018 Earnings Report
Ⅰ. FYE March 2018 Earnings Report 3
Slide 4: Status of Net Sales and Income
Status of Net Sales and Income (Unit:100 million yen) FYE FYE March'17 March'18 Change from Change from Previous period Forecast Results Forecast Results Change Change Amount Amount （%） （%） Net sales 3,532 3,670 3,534 2 0.1 -136 -3.7 Operating income 243 220 204 -39 -16.0 -16 -7.4 Ordinary income 26
Slide 5: Status of Operating Income
Status of Operating Income (Unit:100 million yen) FYE March'17 FYE March'18 Results % Forecast % Results % Net sales 3,532 100.0 3,670 100.0 3,534 100.0 Cost of sales 1,881 53.2 1,953 53.2 1,872 53.0 Gross profit 1,651 46.8 1,717 46.8 1,662 47.0 Freight and charges 304 8.6 315 8.6 300 8.5 Sales prom
Slide 6: Factors of increases (decreases) in operating income
Factors of increases (decreases) in operating income <FYE March 2018 (YoY)> <FYE March 2018 (vs. Plan)> Sales promotion ratio/advertising expenses Raw material prices were 2.6 billion yen below increased by 3.1 billion yen due to aggressive plans but revenues decreased due to net sales sales pro
Slide 7: Status of Net Sales by Segment
Status of Net Sales by Segment (Unit:100 million yen) FYE FYE March'17 March'18 Change from Change from Previous period Forecast Results Forecast Results Change Change Amount Amount （%） （%） Total 3,532 3,670 3,534 2 0.1 -136 -3.7 Confectioneries 1,211 1,306 1,249 38 3.2 -57 -4.3 (Of which, is domest
Slide 8: Status of Operating Income by Segment
Status of Operating Income by Segment (Unit:100 million yen) FYE FYE March'17 March'18 Change from Change from Previous period Forecast Results Forecast Results Change Change Amount Amount （%） （%） Total 243 220 204 -39 -16.0 -16 -7.4 Confectioneries 105 96 99 -7 -6.5 3 2.7 (Of which, is domestic con
Slide 9: Impact of Raw Material Price Fluctuations on Costs
Impact of Raw Material Price Fluctuations on Costs ◆ Review of FYE March 2017：Although dairy product prices increased compared to the previous fiscal year, the impact of price drops for almonds, cacao beans, cocoa butter, etc. was significant, resulting in an overall decline in raw material prices.
Slide 10: Status of Balance Sheet
Status of Balance Sheet ■ The issuance of ¥30 billion in convertible bonds resulted in a significant increase in "Cash and deposits" and "Long-term liabilities". 〇Current assets – Major account items (Unit:100 million yen) ■Net worth ratio (%): 59.4% → 60.7% Mar.’17 Sep.’17 Mar.’18 VS VS Mar.’17 Sep
Slide 11: Status of Cash flows
Status of Cash flows (Unit:100 million yen) FYE FYE FYE FYE FYE March'14 March'15 March'16 March'17 March'18 Main reasons for gains/losses Results Results Results Results Results YoY YoY Net income before income taxes and minority interests -40 decreased Depreciation expenses increased 25 Cash flows
Slide 12: Domestic business: FYE March 2018 Results
Domestic business: FYE March 2018 Results *1 Source: Intage SRI Category FYE March‘18 Forecast FYE March’18 Results *2 Source: Ice Cream Ryutsu Shimbun ◆Market scale (FY2017)*1 Achieved growth rate that significantly Net sales ¥48.6 billion 101.1% compared to previous outperformed the market thanks
Slide 13: Domestic business: FYE March 2018 Results
Domestic business: FYE March 2018 Results Chocolate category Transitions in net sales Chocolate Market ブランド別売上高実績推移 Transitions in Net Sales by Brand -Chocolate category total- (When April 2015-March 2016 is set as 100. Intage SRI) (When FYE March 2016 net sales are set as 100.) （16/3期を100とした場合) 200
Slide 14: Domestic business: FYE March 2018 Results
Domestic business: FYE March 2018 Results Ice cream category Transitions in net sales Ice cream Market ブランド別売上高実績推移 Transitions in Net Sales by Brand -Ice cream category total- (When April 2015-March 2016 is set as 100. Ice cream ryutsu shimbun) (When FYE March 2016 net sales are set as 100.) （16/3期
Slide 15: Domestic business: FYE March 2018 Results
Domestic business: FYE March 2018 Results Drinking milk category Transitions in net sales Drinking milk Market Cafreカフェオーレ売上高実績推移 au Lait transitions in net sales -Drinking milk category total- (When April 2015-March 2016 is set as 100. Intage SRI) (When FYE March 2016 net sales are set as 100.) （16
Slide 16: II. FYE March 2019 Full-Year Earnings Forecast
Ⅱ. FYE March 2019 Full-Year Earnings Forecast 16
Slide 17: Full-Year Plan and Forecast
Full-Year Plan and Forecast (Unit:100 million yen) FYE FYE FYE March'17 March'18 March'19 Full year 2Q Full year 2Q Full year Change from Change from Previous Previous Results Results Results Forecast period Forecast period Change(%） Change(%） Net sales 3,532 1,876 3,534 1,920 2.3 3,640 3.0 Operatin
Slide 18: Operating Income Forecast
Operating Income Forecast (Unit:100 million yen) FYE March'17 FYE March'18 FYE March'19 Results % Results % Forecast % Net sales 3,532 100.0 3,534 100.0 3,640 100.0 Cost of sales 1,881 53.2 1,872 53.0 1,930 53.0 Gross profit 1,651 46.8 1,662 47.0 1,710 47.0 Freight and charges 304 8.6 300 8.5 310 8.
Slide 19: Factors of increases (decreases) operating income
Factors of increases (decreases) operating income <FYE March 2019 Plan (YoY)> Despite increased income of 2.4 billion yen due to increased revenues, we are planning on decreased revenues of 2.4 billion yen due to higher sales promotion and advertising expenses (1.8 billion yen) and increased SG&A
Slide 20: Segment category changes
Segment category changes <Before change> < After change> Reporting Main categories, Reporting Main categories, segment companies segment companies ・Chocolate category Confectioneries ・Chocolate category ・Cookies category and Food ・Cookies category Confectioneries ・Overseas subsidiaries/ Products ・Fo
Slide 21: Net Sales Forecast by Segment
Net Sales Forecast by Segment (Unit:100 million yen) FYE March'17 FYE March'18 FYE March'19 Full year 2Q Full year 2Q Full year Change from Change from Results Results Results Forecast Previous period Forecast Previous period Change(%） Change(%） Total 3,532 1,876 3,534 1,920 2.3 3,640 3.0 Confection
Slide 22: Operating Income Forecast by Segment
Operating Income Forecast by Segment (Unit:100 million yen) FYE March'17 FYE March'18 FYE March'19 Full year 2Q Full year 2Q Full year Change from Change from Results Results Results Forecast Previous period Forecast Previous period Change(%） Change(%） Total 243 155 204 115 -25.8 180 -11.7 Confectio
Slide 23: Region-specific net sales and operating income targets
Region-specific net sales and operating income targets ◆China (Unit:1 million CNY) FYE Dec'17 FYE Dec'18 Change from 2Q Full year 2Q Full year Previous period Results Results Forecast Forecast Amount Change(%） Net Sales 670 1,394 736 1,526 132 9.5 Operating Income 46 60 54 54 -6 -9.7 ◆ASEAN (Unit:1
Slide 24: Enhancing initiatives in ASEAN markets
Enhancing initiatives in ASEAN markets ■We launched the following initiatives to promote business expansion in ASEAN markets, a core region. (1) In October 2017, we established Glico Asia Pacific Pte. Ltd. to serve as the regional headquarters for all operating companies in the ASEAN region. (2) Shi
Slide 25: Glico Thailand: Status of Net Sales and Income
Glico Thailand :Status of Net Sales and Income Net Sales Net Sales/Operating Income Operating Income NettSales 売上高 Operating Income 営業利益 5,000 800 4,228 4,334 4,003 4,000 600 339 326 3,000 400 501 2,000 200 1,000 0 FYE Dec'16 16/12通期 FYE Dec'17 17/12通期 FYE Dec'17 17/12通期 Results 実績 Forecast 計画 Resul
Slide 26: Glico Thailand: Lull in Thai domestic market
Glico Thailand :Lull in Thai domestic market ■The Thai domestic cookie market continued approx. 5% annual growth since FY2013 but FY2017 YoY growth peaked at 102%. ■Amid an severe market environment, we secured sales growth for Pocky and Pejoy concentrating on core products and promoted sales in 14
Slide 27: China (Glico Shanghai): Status of Net Sales and Income
China(Glico Shanghai) :Status of Net Sales and Income Net Sales Net Sales/Operating Income Operating Income NettSales 売上高 Operating Income 営業利益 1,500 150 1,392 1,396 1,394 1,400 100 101 60 42 1,300 50 1,200 0 FYE Dec'16 16/12通期 FYE Dec'17 17/12通期 FYE Dec'17 17/12通期 Results 実績 Forecast 計画 Results 実績
Slide 28: China (Glico Shanghai): China cookie market
China(Glico Shanghai) :China cookie market ■The scale of the China cookie market (offline) in (1) Transitions in cookie market (offline) scale (100M CNY) FY2017 was largely unchanged at 101.9% YoY. 213.0 213.5 217.6 ■By manufacturer, market share (offline) for Glico was largely unchanged. ■We worked
Slide 29: China (Glico Shanghai): Response to China EC
China(Glico Shanghai) :Response to China EC ■On the China cookie market, the EC market has (1) Sakura Pocky exclusive for T-Mall continued to record double-digit growth in recent years. In FY2017, this has come to represent a major market with 5.78 billion CNY in sales (approx. +27% YoY). ■ Through
Slide 30: Confectionery business in America
Confectionery business in America ■FY2017 net sales for American confectionery subsidiary Ezaki Glico USA outperformed results from 3 years prior (FY2014) by over 400%. ■In FY2018 we plan to continue double-digit YoY growth with a focus on the west coast. (1) Transitions in Ezaki Glico USA net sales
Slide 31: III. Overview of Mid-Term Business Plan
Ⅲ. Overview of Mid-Term Business Plan 31
Slide 32: Mid-Term Business Plan <FY2018-20>
Mid-Term Business Plan ＜FY2018-20＞ New start on solidifying our platform to promote continuous growth for the Glico Group 40,000 400,000 Net Sales 35,000 350,000 Operating Income 30,000 300,000 Next Long-term Vision 25,000 250,000 20,000 200,000 150,000 15,000 100,000 10,000 50,000 5,000 0 0 FY2012
Slide 33: FY2020 Consolidated earnings goals
Mid-Term Business Plan Quantitative goals ＜FY2020 Consolidated earnings goals ＞ Item Goal Average annual growth rate of Net Sales 5% and higher Operating Income 30 billion yen and higher Ｒ Ｏ Ｅ 10% and higher 33
Slide 34: Mid-Term Business Plan Basic Policies
Mid-Term Business Plan Basic Policies Mid-Term Business Plan Basic Policies 1. Improve competitiveness through selection and concentration for management resources (1) Enhance core brands and accelerate innovation (2) Accelerate growth through global expansion of health business (3) Establish growth
Slide 35: Capital Investments, Depreciation, and R&D Expenditures
Capital Investments, Depreciation, and R&D Expenditures (Unit:100 million yen) Total FYE March'17 FYE March'18 FYE March'19 (FYE March'19〜 Full year Full year Full year FYE March'21) Results Forecast Results Forecast Forecast Capital investment 177 179 183 193 759 Confectioneries and Food Products 3
Slide 36: Income distribution basic policies (capital strategy)
Income distribution basic policies (capital strategy) 1. Prioritize growth investments and aim for long-term maximization of corporate value. 2. Conduct stable and continuous income returns with a goal of consolidated dividend payout ratio of 25% and higher. *However, in the event of significant ext
Slide 37: Glico Group Overview
Supplemental Materials Glico Group Overview Segment Category Main products Main group company Chocolate (including Pocky) Confectioneries Cookies (including Pretz) and Food Products Food Products Other Icecream、Wholesale Ice Cream Wholesale subsidiaries subsidiaries Ezaki Glico -3 Companies Co., Ltd
Slide 38: Net Sales by Category
Supplemental Materials Net Sales by Category (Unit:100 million yen) FYE FYE FYE March'17 March'18 March'19 Segment Category Change from Results Results Forecast Previous period Amount Change Chocolate (including Pocky) 449 473 484 11 2.3 Cookies (including Pretz) 272 276 280 4 1.5 Confectioneries Fo
Slide 39: TTM Currency Rate
Supplemental Materials TTM Currency Rate USD EUR THB CNY 100KRW 100IDR 3/31 120.17 130.32 3.70 19.36 10.87 0.92 6/30 122.45 137.23 3.62 19.73 10.94 0.92 2015 9/30 119.96 134.97 3.29 18.96 10.06 0.82 12/31 120.61 131.77 3.34 18.36 10.33 0.88 3/31 112.68 127.70 3.19 17.39 9.86 0.85 6/30 102.91 114.39
Slide 40: 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 time. As such, this information may include major risks and uncertainties. Please note that actual performance may differ