Lifedrink Company Inc. · TSE:2585
Lifedrink — FY2024 Earnings Presentation
29 slides from Lifedrink's earnings presentation, May 14, 2024
Slide 1: Financial Results for FY2024
most Reassurance. ~s Financial Results for FY2024 LIFEBRINK COMPANY May 14 , 2024
Slide 2: FY2024 performance and FY2025 forecast summary
(SN (FY2024) Increased production, revenue &Operating profit Initiatives progress (FY2025) Performance \ Forecast _) Increased production quantity (+12% YoY) due to investments to increase production capacity at existing factories and additional production quantity of Nitto Beverage. Securing custom
Slide 3: 1. FY2024 Performance
1.FY2024 Performance LIFEBRINK COMPANY
Slide 4: FY2024 key figures
64 38.2 4.7 Million cases+2 Billion yen Billion yen yor +12% yor +20% yor +5 1% 32.4% YoY +6.9 ot a x1: Incl, Nitto Beverage, but not incl, Ikoma meisui *2: 1 box = 12L is calculated *3 "We have been preparing 4 consolidated financial statements since the fiscal year ending March 2023. Therefore, th
Slide 5: Increased production quantity contributed to higher sales and operating profit
Increased production quantity“! (+12% YoY) contributed to an increase in sales of 79.0 BN (+26%). Operating profit increased (+51%) as higher sales and cost reduction measures covered various cost increases. Unit: MMUPY) PYawz3 VaORS Mae YoY% Revenue 30,250 38,236 +7,986 +26% Operating profit 3,116
Slide 6: Operating profit change analysis
Increased costs in raw materials and labor were covered by higher revenue and productivity improvements/cost reductions. As a result, the operating profit reached 15.9 billion, representing a gain compared to the prior year. Unit:MM JPY 1,057 2,098 A 430 2 116 nm 7 ‘icant 7 a 7 ' rrmeimies 7 nei 1 |
Slide 7: Production quantity and revenue by quarter
™ FY2022 FY2023 MFY2024 16.6] 13.6) ™ FY2022 MFY2024 Unit:million cases*! Unit: bn JPY Production quantity Revenue Ql v 1 1 i ' ' t t ' ' ' ' ' 1 ' ' 1 1 1 1 Hl t t t t ' ' ' ' ' ' t ' ' ' ' 1 t 1 1 t 1 1 1 1 1 1 1 t t ' ' ' t t ' t 88 79 70 Q3 Q4 7 *1:Calculated with 1 box = 12L. LIFEBRINK COMPANY
Slide 8: Operating profit and EBITDA by quarter
@ FY2022 @ FY2022 H | FY2023 mry2024 | mry2024 Unit:bn JPY | Unit:bn JPY Operating profit/% EBITDA/EBITDA Margin 14.3% ' 14.1% ‘ 17.0% 16.9% ! ° 15.7% 12.5% : 15.29 15.4% 7 9) . Hl ° ° W7 11.4% 1 13.99 13.7% 13.8% fe} 1 ° ° ° 112.8% ° 10.39 10.2% ro 12.1% 4° 3 9.8% a 9.2% ° 7.9% 3 11.0% ° : 10.1% °
Slide 9: Balance sheet: fixed assets and net debt increased
Fixed assets increased by 76 billion yen due to investments such as the construction of Gotemba factory. Additionally, net interest-bearing debt increased by 46 billion yen due to financing for this investment. FY2023 Unit:MM [JPY] Amount Current assets 10,905 [Cash and deposits] 4,326 Non-current a
Slide 10: Cash flows
Operating cash flow increased by 8 billion yen compared to the prior period, reaching 46 billion yen, driven by profit growth. Investment cash flow, on the other hand, incurred an expenditure of 87 billion yen, up by 37 billion yen compared to the prior period, due to growth investments such as the
Slide 11: Growth investments: Gotemba factory and Nitto Beverage
The main growth investments for the fiscal year are the construction of a new Gotemba factory and investment to increase production at Nitto Beverage.The capacity expansion project for Nitto Beverage was completed in March 2024. Purpose Factory Total FY2022 FY2023 FY2024 States Amount Payment Paymen
Slide 12: Capital allocation and dividend of 37.0 yen per share
While prioritizing growth investments, etc., we plan to pay a dividend of 37.0 yen per share for the fiscal year ending March 2024, an increase of 9.0 yen from the previous fiscal year (total dividend of 4.8 billion yen). policy Measures FY2024 (- » ; . Actively implement growth Growth 1. Strengthen
Slide 13: New product releases
Nitto Beverage's Aya-mizu(Water) Functional “Black Oolong Labelless released Tea”released Aya-cha series: Launch of barley tea and green Expansion of Product Offering tea (labelless) for Subscription Services
Slide 14: Gotemba factory started operations in April 2024
Gotemba factory, with a total investment of 94 billion yen, started operations as planned in April 2024. We are working towards full production. 736-1 Itazuma, Gotemba Location City, Shizuoka Prefecture Production Beverage item (Water:Tea) Production | Approx. 8 million cases” capacity Year Site are
Slide 15: Acquisition of Carbonated Water Manufacturing Business
Acquisition of Carbonated Water Manufacturing Business
Slide 16: 2. FY2025 Performance forecast
2. FY2025 Performance forecast 16 LIFEBRINK COMPANY
Slide 17: Increase production capacity, EC/D2C and productivity
Our company aims to increase production capacity through expansion and acquisition, venture into the EC/D2C model, and enhance productivity to elevate corporate value. Evolution and deepening of max production and max sales =Increase/acquire production capacity e@ Increase production capacity by upd
Slide 18: FY2025 forecast
We anticipate an increase in production, revenue, and profit through initiatives such as the operation of the Gotemba factory and the expansion of production at Nittobe Beverage. Additionally, we have incorporated price adjustments for products to offset various cost Increases. Points Unit: FY2024 F
Slide 19: (Reference) Company Introduction
(Reference) Company Introduction 19 LIFEBRINK COMPANY
Slide 20: Company profile
Our head office is located in Osaka, and our main business is the drink and leaf business that manufactures and sells Mineral water, tea, and carbonated drinks. LIFEDRINK COMPANY, INC. (“LDC”) 1950 (Established-1972) Osaka-shi, Osaka e Drinks / Leaves Business — Mineral water, tea, carbonated drinks
Slide 21: Corporate philosophy
Based on our corporate philosophy, “Center of Deliciousness, Foremost Reassurance”, we conduct according to action guidelines, “Only what you want your loved ones to drink”. Center of Deliciousness, Foremost Reassurance To “always” be close to our customers from babies to the elderly, We pursue “sta
Slide 22: Company history
Our company is 52 years of establishment. Listed on the prime market in June 2023. 2015 2016 2017 2019 2020 2021 ¢ Soji Tanaka incorporated Ryokkaen (tea wholesaler), founded by Tanaka Tane in 1950, and established 2023 Asamiya in 1972 A y 2024 Foundation (1950) 2001 2002 2004 2005 2006 Entering Sof
Slide 23: Low-price products and stable supply advantages
We have the advantage of offering "low-price products” and ensuring "stable supply” through "mass production of fewer varieties,” "high in- house coverage,” and "nationwide expansion of factories. e@ Specializing in 2L and 500ml of Mass water, tea and carbonated production water of less @ Other beve
Slide 24: Product lineup
The liquids available are water, tea, and carbonated water, with capacities concentrated in 2 liters or 500 milliliters. We aim to minimize waste in each process. fr Ri P| I s| z 4 Ri & 4 = E 4 a | : — & =| i o ) is iis NS : Natural mineral water Carbonated water ZAO SODA 500ml/ 2L for EC 500ml = |
Slide 25: In-house production and nationwide factories
In-house production mainly reduces manufacturing costs, and nationwide expansion of factories reduces distribution costs. In-house production from | Nationwide expansion of factories procurement to sales Iwate Zao (Tea) (Carbonated water) bes Nitto (Tea-Other) be PET bottle Miva ag — ‘ochigi (Tea) b
Slide 26: Sales channels
Sales channels We build relationships with major retailers in each channel. Our e-commerce business is steadily expanding, with our main products and directly managed stores each winning the Rakuten Ranking Grand Prize. ; ; Expansion of direct channels through EC | Strong partnership with retailers
Slide 27: Sustainability policy
Based on our sustainability policy, we aim to achieve both the promotion of sustainability and the improvement of corporate value from a long- term perspective. / Sustainability Policy Fulfill our social responsibility that support consumer’ s life and infrastructure continuously through stable supp
Slide 28: Disclaimer
This document has been prepared by LIFEDRINK COMPANY, INC. (the “Company”) solely for information purpose only. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in J
Slide 29: LIFEDRINK
LIFEDRINK COMPANY LIFEBRINK COMPANY