Meiji Holdings Co., Ltd. · TSE:2269

Meiji — H1 FY2021 Earnings Presentation

46 slides from Meiji's earnings presentation, Nov 11, 2021

  1. Slide 1: Financial Results for the H1 of FYE March 2022 (FY2021)

    Financial Results for the H1 of FYE March 2022 (FY2021) (From April 1, 2021 to September 30, 2021) November 11, 2021 * Revenue recognition accounting standards are applied from the beginning of Q1 of FY2021. In this material, the figures for FY2020 is shown as before the standards, and the figures f

  2. Slide 2: 1. Financial Summary for the H1 of FY2021

    1. Financial Summary for the H1 of FY2021 1 © Meiji Holdings Co., Ltd. All rights reserved.

  3. Slide 3: Summary for H1 FY2021 Consolidated Results

    Summary for H1 FY2021 Consolidated Results (JPY bn) FY2021 FY2020 FY2021 H1 Results H1 Results H1 Plan YoY Change vs. H1 Plan (as of Sep. 10) -14.4% -0.8% Net sales 584.9 500.7 -84.2 -4.2 505.0 +1.5% (Reference: Net sales) 493.3* 500.7 +7.3 — ― -0.1% -1.3% Operating profit 50.4 50.3 -0.0 -0.6 51.0 O

  4. Slide 4: Food: Summary for the H1 of FY2021

    Food：Summary for the H1 of FY2021 (JPY bn) FY2020 FY2021 FY2021 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan -17.6% -0.2% Net sales 496.5 409.0 -87.5 -0.7 409.8 -0.2% (Reference: Net sales) 409.7* 409.0 -0.6 — ― -9.9% -7.7% Operating profit 43.9 39.5 -4.3 -3.3 42.9 YoY Change in Operating Pr

  5. Slide 5: Pharmaceutical: Summary for the H1 of FY2021

    Pharmaceutical: Summary for the H1 of FY2021 (JPY bn) FY2020 FY2021 FY2021 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +3.3% -3.6% Net sales 89.1 92.1 +2.9 -3.3 95.5 +9.2% (Reference: Net sales) 84.3* 92.1 +7.7 — ― +70.6% +32.7% Operating profit 6.6 11.2 +4.6 +2.7 8.5 YoY Change in Operatin

  6. Slide 6: 2. Outlook for the H2 of FY2021 and Business-specific Overview

    2. Outlook for the H2 of FY2021 and Business-specific Overview 5 © Meiji Holdings Co., Ltd. All rights reserved.

  7. Slide 7: Outlook for the H2 of FY2021

    Outlook for the H2 of FY2021 (JPY bn) FY2020 FY2021 FY2021 H2 Results H2 Plan H2 Plan (as of Nov. 9) YoY Change (as of Sep. 10) -15.4% Net sales 606.7 513.2 -93.5 514.0 Consolidated -0.1% Ref: Net sales* 513.7* 513.2 -0.4 — -10.8% Operating profit 55.6 49.6 -5.9 55.0 Profit attributable to +44.5% ow

  8. Slide 8: New growth domains

    Food: Under the banner of Meiji Nutrition Statement, create the value unique to Meiji using our competitive advantage in technology Meiji continuously evaluates the potential of Nutrition. We always have. We always will. Mind Providing Nutrition that supports daily health through natural ingredients

  9. Slide 9: Overview for Yogurt and Cheese

    Overview for Yogurt and Cheese (JPY bn) FY2021 FY2021 FY2021 Full-year H1 Results H2 Plan Plan YoY Change (as of Nov. 9) YoY Change YoY Change (as of Nov. 9) -8.2% -0.2% -4.3% Net sales 123.2 -11.0 126.2 -0.2 249.4 -11.2 -28.6% -5.6% -18.2% Operating profit 18.7 -7.4 20.2 -1.2 38.9 -8.6  Net sales

  10. Slide 10: Sales Recovery and Further Growth for Functional Yogurt and Yogurt

    Sales Recovery and Further Growth for Functional Yogurt and Yogurt Applying R&D strengths, achieve stable growth by stimulating existing products and developing and promoting new products Yogurt Market • H1: Outperformed H1 FY2019. Stable growth About JPY 480 billion due to increase in royal custome

  11. Slide 11: Overview for Nutrition Business

    Overview for Nutrition Business (JPY bn) FY2021 FY2021 FY2021 Full-year H1 Results H2 Plan Plan YoY Change (as of Nov. 9) YoY Change YoY Change (as of Nov. 9) +5.7% +5.3% +5.5% Net sales 62.9 +3.3 59.4 +2.9 122.4 +6.3 +13.6% -8.0% +3.4% Operating profit 10.6 +1.2 7.7 -0.6 18.3 +0.6  Net sales • H1:

  12. Slide 12: Overview for Chocolate and Gummy Business

    Overview for Chocolate and Gummy Business (JPY bn) FY2021 FY2021 FY2021 Full-year H1 Results H2 Plan Plan YoY Change (as of Nov. 9) YoY Change YoY Change (as of Nov. 9) +5.8% +4.5% +5.1% Net sales 50.1 +2.7 70.7 +3.0 120.8 +5.8 +62.5% +11.1% +21.2% Operating profit 3.7 +1.4 10.4 +1.0 14.2 +2.4  Net

  13. Slide 13: Overview for Overseas Business

    Overview for Overseas Business (JPY bn) FY2021 FY2021 FY2021 Full-year H1 Results H2 Plan Plan YoY Change (as of Nov. 9) YoY Change YoY Change (as of Nov. 9) +16.2% +11.4% +13.7% Net sales 26.8 +3.7 28.7 +2.9 55.5 +6.6 -51.0% -13.4% -30.9% Operating profit 0.2 -0.3 0.5 -0.0 0.8 -0.3  Net Sales Sale

  14. Slide 14: Pharmaceutical: Drive Structural Reform

    Pharmaceutical: Drive Structural Reform Concentrate management resources in infectious disease domain Start rebuilding business portfolio  Transfer some businesses  Transferred stock of DM Bio, equity method affiliate, to Dong-A Socio Group (announced on July 27)  Transferring agricultural chemic

  15. Slide 15: Overview for Human Vaccine Business

    Overview for Human Vaccine Business (JPY bn) FY2021 FY2021 FY2021 Full-year H1 Results H2 Plan Plan YoY Change (as of Nov. 9) YoY Change YoY Change (as of Nov. 9) +15.6% -21.7% -4.8% Net sales 24.0 +3.2 19.6 -5.4 43.7 -2.2 +70.2% -66.9% +5.2% Operating profit 8.6 +3.5 1.5 -3.0 10.2 +0.5  Net sales

  16. Slide 16: Overview for Domestic Ethical Pharmaceuticals Business

    Overview for Domestic Ethical Pharmaceuticals Business (JPY bn) FY2021 FY2021 FY2021 Full-year H1 Results H2 Plan Plan YoY Change (as of Nov. 9) YoY Change YoY Change (as of Nov. 9) +9.6% +5.3% +7.2% Net sales 45.2 +3.9 52.7 +2.6 98.0 +6.6 ― -42.8% -7.1% Operating profit 1.7 +2.1 3.4 -2.5 5.2 -0.4 

  17. Slide 17: Overview for Overseas Pharmaceutical Business

    Overview for Overseas Pharmaceutical Business (JPY bn) FY2021 FY2021 FY2021 Full-year H1 Results H2 Plan Plan YoY Change (as of Nov. 9) YoY Change YoY Change (as of Nov. 9) -2.2% +15.6% +6.6% Net sales 19.4 -0.4 22.5 +3.0 42.0 +2.6 -43.7% +53.9% -2.6% Operating profit 1.2 -0.9 2.4 +0.8 3.7 -0.1  Ne

  18. Slide 18: 3. Outlook for the Full-year, FY2021

    3. Outlook for the Full-year, FY2021 17 © Meiji Holdings Co., Ltd. All rights reserved.

  19. Slide 19: Full-year Outlook – FY2021

    Full-year Outlook – FY2021 (JPY bn) FY2021 FY2021 FY2021 FY2020 Plan Plan Plan Results YoY Change (as of Nov. 9) (as of May 18) (as of Sep. 10) -14.9% Net sales 1,191.7 1,014.0 -177.7 1,024.0 1,019.0 +0.7% (Reference: Net sales) 1,007.1* 1,014.0 +6.8 — — -5.7% Operating profit 106.0 100.0 -6.0 107.5

  20. Slide 20: Cash Flows and Returns to Shareholders

    Cash Flows and Returns to Shareholders Financial Strategy and Capital Rationing  Points of full-year FY2021 Cash flows Capital from expenditures Sale of assets operating JPY 274 bn Cash inflows approximately JPY 50 billion due to activities Approx. transfer of DM Bio stock and agricultural JPY 400

  21. Slide 21: Established the Meiji Group ESG Advisory Board

    Established the Meiji Group ESG Advisory Board Board of Directors Group Sustainability System CEO, President and representative director, Meiji HD Group Strategy Committee Executive Committee ESG Group Sustainability Committee Advisory Board (Twice a year) (Dialogue with Outside Experts) Group Susta

  22. Slide 22: Held Meiji Group ESG Advisory Board

    Held Meiji Group ESG Advisory Board Established ESG Advisory Board, meet twice a year Use external opinions to further strengthen sustainability activities ■ 1st meeting: August 25, 2021 (Wed.) ■ Attendee: 3 external experts + 5 Meiji HD members including Kawamura, CEO ■ Meeting agenda: 1. Human rig

  23. Slide 23: Topics

    Topics Steady implement initiatives according to the Meiji Group long-term vision: Meiji Green Engagement for 2050  Joined the Japan Climate Leaders’ Partnership (JCLP) (July, 2021) Joined the JCLP, a group of companies dedicated to achieving a sustainable, carbon- free society  Joined RE100 (Sept

  24. Slide 24: 2023 Medium-term Business Plan Promote the Meiji ROESG Management Effectively

    2023 Medium-term Business Plan Promote the Meiji ROESG®* Management Effectively Convert business management to achieve both ROE improvement and ESG enhancement without any compromises Indicators ROE × Achieve ESG goals ＋ unique to Meiji ＝ The Meiji ROESG Target for Depending on Every Target for FY20

  25. Slide 25: Appendix

    Appendix 24 © Meiji Holdings Co., Ltd. All rights reserved.

  26. Slide 26: Consolidated Financial Results for H1 of FY2021

    Consolidated Financial Results for H1 of FY2021 (JPY bn) FY2021 H1 Results YoY Change Main factors for the change -14.4% Net sales 500.7 -84.2 ― Details on p2-4 -0.1% Operating profit 50.3 -0.0 ― Details on p2-4 +62.5% - Share of profit of entities accounted for using equity method (+1.6) Non-operat

  27. Slide 27: Analysis of Operating Profit – H1 FY2021

    Analysis of Operating Profit – H1 FY2021 (JPY bn) Consolidated Food Pharma Other H1 Results - FY2020 50.4 43.9 6.6 -0.1 Due to increased/decreased sales +0.5 -3.9 +4.4 ― Impact of drug price revision -2.5 ― -2.5 ― Changes in costs of goods sold -0.5 *1 -1.0 +0.5 ― Changes in other SG&A expenses -1.1

  28. Slide 28: Financial Position as of September 2021

    Financial Position as of September 2021 (JPY bn) Results as of Sep. 2021 Change Main Factors for Change +12.8% - Cash and deposits (+43.7) Current assets 480.6 +54.6 - Notes and accounts receivable-trade (+7.9) +3.6% Non-current assets 664.2 +23.3 - Construction in progress (+22.3) +7.3% Total asset

  29. Slide 29: Consolidated Cash Flows – H1 FY2021

    Consolidated Cash Flows – H1 FY2021 (JPY bn) FY2021 H1 Results YoY Change Main Factors for Change - Increase in contract liability (+12.1) - Decrease in inventories (+8.0) Cash flows from operating 61.1 +20.3 - Profit before income taxes (+8.0) activities - Increase in trade payables (+5.4) - Income

  30. Slide 30: Consolidated Plan for FY2021

    Consolidated Plan for FY2021 (JPY bn) FY2021 FY2021 FY2021 H2 Plan Full-year plan H1 Results YoY Change YoY Change YoY Change (as of Nov. 9) (as of Nov. 9) -14.4% -15.4% -14.9% Net sales 500.7 -84.2 513.2 -93.5 1,014.0 -177.7 Consolidated +1.5% -0.1% +0.7% Ref: Net sales* ― +7.3 ― -0.4 ― +6.8 -0.1%

  31. Slide 31: Analysis of Operating Profit – FY2021

    Analysis of Operating Profit – FY2021 (JPY bn) Consolidated Food Pharma Other FY 2020 Results 106.0 87.4 19.1 -0.5 Due to increased/decreased sales +5.3 -2.1 +7.4 ― Impact of drug price revision -5.0 ― -5.0 ― Changes in costs of goods sold -2.4 *1 -3.3 +0.9 ― Changes in other SG&A expenses -2.6 *2 +

  32. Slide 32: Food: Plan by Business – FY2021

    Food: Plan by Business – FY2021 (JPY bn) FY2021 FY2021 FY2021 H1 Full-year H2 Plan Results YoY Change (as of Nov. 9) YoY Change plan YoY Change (as of Nov. 9) -8.2% -0.2% -4.3% Net sales 123.2 126.2 249.4 Yogurt & -11.0 -0.2 -11.2 cheese -28.6% -5.6% -18.2% Op. profit 18.7 -7.4 20.2 -1.2 38.9 -8.6 +

  33. Slide 33: Food: Plan by Business – FY2021

    Food: Plan by Business – FY2021 (JPY bn) FY2021 FY2021 FY2021 H1 Full-year H2 Plan Results YoY Change (as of Nov. 9) YoY Change plan YoY Change (as of Nov. 9) -5.6% -2.6% -4.3% Frozen Net sales 40.1 -2.3 31.2 -0.8 71.4 -3.2 dessert& ready -28.0% +90.8% -16.4% meal Op. profit 2.3 -0.9 0.6 +0.3 3.0 -0

  34. Slide 34: Food: Analysis of Op. Profit by Business – H1 FY2021

    Food: Analysis of Op. Profit by Business – H1 FY2021 (JPY bn) Food Chocolate Frozen Other/ Yogurt ＆ Drinking Segment Nutrition & B to B dessert & Overseas domestic cheese milk subsidiaries Total gummy ready meal H1 Operating Profit – FY2020 43.9 26.1 9.3 2.3 -0.6 0.1 3.3 0.5 2.6 Due to increased/dec

  35. Slide 35: Food: Analysis of Op. Profit by Business – FY2021

    Food: Analysis of Op. Profit by Business – FY2021 (JPY bn) Food Chocolate Frozen Other/ Yogurt ＆ Drinking Segment Nutrition & B to B dessert & Overseas domestic cheese milk subsidiaries Total gummy ready meal Operating Profit – FY2020 Results 87.4 47.6 17.7 11.7 -1.2 1.7 3.6 1.2 4.8 Due to increased

  36. Slide 36: Food: Sales by Main Products – FY2021

    Food: Sales by Main Products – FY2021 (JPY bn) FY2021 FY2020 FY2021 Full-year H1 Results H1 Results YoY vs. H1 plan Change Plan (as of Nov. 9) Yogurt 44.4 42.4 -4.4% -0.7% 83.8 Functional yogurt 56.5 49.5 -12.4% -10.2% 102.4 Cheese 15.3 14.8 -3.8% -3.0% 29.9 Chocolate 38.2 39.5 +3.5% -3.0% 99.2 Infa

  37. Slide 37: Pharmaceutical: Plan by Business – FY2021

    Pharmaceutical: Plan by Business – FY2021 (JPY bn) FY2021 FY2021 FY2021 H1 Full-year H2 Plan Results YoY Change (as of Nov. 9) YoY Change plan YoY Change (as of Nov. 9) +9.6% +5.3% +7.2% Net sales 45.2 52.7 98.0 Domestic ethical +3.9 +2.6 +6.6 pharmaceuticals ― -42.8% -7.1% Op. profit 1.7 +2.1 3.4 -

  38. Slide 38: R&D Pipeline – Infectious diseases, CNS, Others

    R&D Pipeline – 1 ■ Japan ■Overseas R&D Pipeline (◆: discovered in-house) FY2021 FY2022 FY2023 Infectious diseases ME1100 Arbekacin inhalation [HABP/VABP] ◆ P Ib OP0595 Nacubactam [β-lactamase inhibitor] ◆ PI with β- Lactams disorders CNS ME2112 Ziprasidone [Antipsychotic] P III [Relapsed or refracto

  39. Slide 39: R&D Pipeline – Human vaccines, Blood plasma products

    R&D Pipeline – 2 ■ Japan ■Overseas R&D Pipeline (◆: discovered in-house) FY2021 FY2022 FY2023 Phase III Apply Approve KD-370 [Pentavalent vaccine against diphtheria, tetanus, pertussis, polio, and haemophilus influenza type b] ◆ Phase II Human vaccines Phase I/II KD-414 [Inactivated vaccine against

  40. Slide 40: R&D Pipeline – Veterinary drugs, Agricultural chemicals

    R&D Pipeline – 3 ■ Japan ■Overseas R&D Pipeline (◆: discovered in-house) FY2021 FY2022 FY2023 Agricultural chemicals ME5382 [Insecticide/Flupyrimin] ◆ Approved Approved ME5343 [Insecticide/Afidopyropene] Licensing agreement with BASF ◆* Approved ANM-138 [Insecticide/Flometoquin] Joint development wi

  41. Slide 41: KD-414 (Inactivated vaccine against COVID-19) Development Timeline

    Pharmaceutical: KD-414 (Inactivated vaccine against COVID-19) Development Timeline 2021 2022 2023 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 P II/III safety study in adults in Japan (n=2,000) PIII, active-controlled, immunogenicity study Clinical study in pediatric populati

  42. Slide 42: Key Currencies and Our Average Exchange Rates

    Key Currencies and Our Average Exchange Rates (JPY) USD EUR RMB Foreign exchange target 140.00 131.78 For FY2021 (JPY) 128.10 125.70 123.71 124.41 123.29 119.83 120.65 120.68 118.94 120.00 USD 106 110.46 110.00 110.00 107.70 108.98 109.22 107.74 105.88 100.00 104.45 106.24 EUR 126 80.00 RMB 15 60.00

  43. Slide 43: Market Prices of Main Raw Materials Imported

    Market Prices of Main Raw Materials Imported (USD/MT) Nonfat Dry Milk (USD/MT) Cheese 3,500 7,000 6,000 3,000 5,000 2,500 4,000 2,000 3,000 1,500 2,000 (GBP/MT) Cocoa beans (USD/ｌｂ) Sugar 2,500 25 2,000 20 1,500 15 1,000 10 500 5 42 © Meiji Holdings Co., Ltd. All rights reserved. (Source) Bloomberg

  44. Slide 44: The Meiji ROESG: ESG Indicators

    The Meiji ROESG® : ESG Indicators Our ESG indicators are the combination of overall ESG evaluation and environment focused rating. We chose MSCI ESG Ratings, DJSI, and FTSE4Good and CDP ratings. Evaluation indicator FY2020 Target for FY2023 MSCI ESG Ratings BB A DJSI 80% (52 pts.) 90% (75 pts.) FTSE

  45. Slide 45: The Meiji ROESG: Target for Unique to Meiji

    The Meiji ROESG® : Target for Unique to Meiji The Meiji Group has established six indicators. Five of these indicators are selected from the social issues that we particularly focus on under the 2023 Medium-Term Business Plan and employee engagement that support corporate activities. Indicator Targe

  46. Slide 46:  Information in this material is not intended to solicit sale or purchase of

     Information in this material is not intended to solicit sale or purchase of shares in Meiji Holdings. The final decision relating to investments should be made based on the judgment of users themselves.  Business forecasts and other forward-looking statements are based on information available at

Meiji Holdings — H1 FY2021 Earnings Presentation on 6ix