Meiji Holdings Co., Ltd. · TSE:2269

Meiji — Investor Day (June 2024)

36 slides from Meiji's investor day presentation, Jun 11, 2024

Slide 2: Agenda
AGENDA 1. Growth Strategy of Food Segment Katsunari Matsuda COO (Food Segment), Member of the Board and Executive Officer 2. The Fusion of Sustainability and Business Jun Furuta CSO, Member of the Board and Senior Executive Officer 3. Growth Strategy of Pharmaceutical Segment Daikichiro Kobayashi CO
Slide 4: Efforts to Improve ROIC
Efforts to Improve ROIC ROIC by business*1 FY2023 FY2026 Operating Profit Margin Improvement Company-wide Hurdle rate (E) Target WACC for food segment 5% 6% 10% 15% FY2023 operating profit 64.3 • Enhance proposals for value-added Approx. Domestic profitability products improvement +9.0 • Establish o
Slide 5: Accelerate to Grow Overseas Business
Accelerate to Grow Overseas Business 2026 Medium-term Business Plan (JPY bn) FY2023 FY2024 FY2026  Overseas Business Promotion Result Plan Target vs. FY2023 Structure from April 2023 +147.2% Net sales 24.3 31.0 60.3 +35.9 Global Dairy China Business Division Global planning, ― developing, and Op. P
Slide 6: Dairy and Food Solutions Businesses
Accelerate to Grow Overseas Business Dairy and Food Solutions Businesses Focus area China, Asia • Review of sales areas to consider profitability Steady Execution of Revival Plan in China Business • Cost reduction and optimization of production structure • Increase the composition ratio of value-add
Slide 7: Chocolate Business
Accelerate to Grow Overseas Business Chocolate Business Focus area The U.S., China, Asia • Strengthen initiatives related to major retailers and agents • Expand production capacity and establish a global production system • Develop global brands The U.S. China  Expand production capacity for furthe
Slide 8: Nutrition Business
Accelerate to Grow Overseas Business Nutrition Business Focus area Asia, Europe • Accelerate the development of products aligned with local needs • Expand to more countries Infant Formula  Expand to more countries/regions as products that are competitive in terms of technology and intellectual prop
Slide 10: Evolve the Meiji ROESG Management
Evolve the Meiji ROESG® Management Return to a growth trajectory by transforming focus markets, business structure, and our behavior Key strategies 1. Invest management resources into 2. Keep and improve stable cash flow growth businesses • Enhance competitive advantage by pursuing • Strengthen and
Slide 11: Composition of Meiji ROESG
Composition of Meiji ROESG  Sales of Meiji ROESG target brand line/products  Food 1. Health-oriented foods and value-added nutritional foods (Meiji Bulgaria Yogurt, Meiji Probio Yogurt R-1, Chocolate Koka, × ＝ Achieve Meiji SAVAS, Meiji MeiBalance, etc.) ROE ESG goals ROESG 2. Foods with our envir
Slide 12: Structure of Meiji Group Sustainability Activities
Structure of Meiji Group Sustainability Activities Linked the 12 Materialities to 4 Activity Themes Create structure around two elements: initiatives that enable us to exert characteristics unique to Meiji and initiatives that will serve as a foundation for corporate activities Activities Structure
Slide 13: Unique Initiatives Related to Materiality
Unique Initiatives Related to Materiality 1. All Materiality • Adopt Meiji Sustainable Products Certification System 2. Building a supply chain that takes into account human rights and the environment • Initiatives related to sustainable procurement activities for raw milk, cocoa, palm oil, and soyb
Slide 14: Pursue Added Value in Japan Business – Innovate Product Development Process
Pursue Added Value in Japan Business – Innovate Product Development Process <Product Development Process> 1. Meiji Sustainable Products Product concept creation 2. Meiji NPS Certification System ↓ ↓  Certify products for which  Develop and improve products ↓ sustainability activities are Solutions
Slide 15: Outline of Meiji Sustainable Products Certification System
Outline of Meiji Sustainable Products Certification System Add sustainability, a new social value, to product value and convert that to customer value Use sustainability innovation Evaluate and certify based on 5 standards to resolve social issues Social Evaluate/ 1. Contribution to healthy dietary
Slide 16: Promote Ethical Consumption through Meiji Sustainable Products
Promote Ethical Consumption through Meiji Sustainable Products Incorporate sustainability into product development concepts and link to the promotion of ethical consumption (economic value) Environmental load Plastic waste Global warming/ Child labor Deforestation Food loss from dairy farming pollut
Slide 17: Building a Supply Chain that Takes Into Account Human Rights and the Environment
Building a Supply Chain that Takes Into Account Human Rights and the Environment Procuring raw materials, etc. from some 3,100 supplier companies around the world Advance collaborations and dialogue to work towards resolving social issues and building a responsible supply chain Supplier composition
Slide 18: Sustainable Sourcing: Raw Milk, Cocoa
Sustainable Sourcing Raw Milk Cocoa 1. Dairy farmer support for sustainable dairy farm 1. Meiji’s unique cocoa farmer support activities management • Meiji Cocoa Support (MCS) • Meiji Dairy Advisory 2. Regional contributions support coexistence with the 2. Aim for 100% procurement ratio of Meiji Sus
Slide 19: Sustainable Sourcing: Palm Oil, Soybean
Sustainable Sourcing Palm Oil Soybean  Support NDPE (No Deforestation, No Peat, No  Indicated deforestation and human rights issues Exploitation) policy and conduct socially responsible due to irresponsible plantation development, procurement activities particularly in Brazil  Completed switch to
Slide 20: Improve Water Resource Recharge through Forest Conservation Activities
Improve Water Resource Recharge through Forest Conservation Activities Achieve 100% recharge rate for water used as raw material for products by 2030 Aim for water neutrality Forest of Kinoko noYama and Takenoko no Sato Paddy field flooding activity (KM Biologics)  Established Meiji Group Nature Co
Slide 21: ESG Investments of JPY50 bn during the 2026 Medium-Term Business Plan
ESG Investments of JPY50 bn during the 2026 Medium-Term Business Plan (JPY bn) Field Main items Main investment plan Total • Adopt energy-saving equipment Reduce CO2 emissions • Adopt solar power generation equipment, etc. Measures to achieve zero CFC • Adopt CFC-free refrigeration/freezing equipmen
Slide 22: Promotion Structure for Strengthening Sustainability Activities
Promotion Structure for Strengthening Sustainability Activities 1. Group Sustainability System 2. Advisory Board Members (Experts) Takeshi Kamigochi Mari Kogiso Member of the Board, Executive Officer, Senior Co-CEO, SDG Impact Japan Vice President & COO, J-OIL MILLS, INC. Rika Sueyoshi Peter David P
Slide 23: Selected to Sustainability Transformation Brands (SX Brands 2024)
Selected to Sustainability Transformation Brands (SX Brands 2024) Praised for our efforts to simultaneously achieve profit growth and sustainability activities based on the basic concept of implementing Meiji ROESG® management. 22 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 25: Review of 2020 and 2023 Medium-term Business Plans
Review of 2020 Medium-term Business Plan and 2023 Medium-term Business Plan 2020 Medium-term Business Plan 2023 Medium-term Business Plan* 204.3 208.1 215.0 198.6 193.6 198.2 Net Sales vs. FY2018 (JPY bn) +8% FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 21.7 22.7 19.1 18.6 15.9 vs. FY2018 Op. Profit 14
Slide 26: Efforts to Improve ROIC
Efforts to Improve ROIC FY2023 FY2024 FY2026 Operating profit JPY22.7 bn JPY25.0 bn JPY40.0 bn ROIC 7.7% 8.0% 11% or more Evolution of Business Platform  Launching revolutionary new drugs (Vaccines, FY2026 Target immune system)  Shoring up basic drugs (Infectious diseases) 11.0％ or more  Centrali
Slide 27: Strategy for Domestic Pharmaceuticals (Japan) Business
Strategy for Domestic Pharmaceuticals (Japan) Business Business Strategy  Build up a sustainable business platform as a company that solves social issues  Grow business by providing value to unmet medical needs Category Category Strategy Infectious  Achieve solid revenue platform enhancements for
Slide 28: Strategy for Overseas Pharmaceuticals Business
Strategy for Overseas Pharmaceuticals Business Business Strategy  Expand business scope through the allocation of significant resources (Human capital, products, capital) into overseas business Category Category Strategy  Enhance production capacity and effectively utilize existing production capa
Slide 29: Strategy for Vaccines and Veterinary Drugs Business
Strategy for Vaccines and Veterinary Drugs Business Business Strategy  Increase profitability and capital productivity by maximizing value chain Category Category Strategy  Capture top share for Kostaive  Maximize revenues from influenza vaccine and KD-414 Vaccine  Expand share of pediatric rout
Slide 30: Strategy on Each Function
Strategy on Each Function Function Function Strategy  Develop First-in-Class drugs  Implement rapid and certain global development projects R&D  Practically implement platform technology related to new biopharmaceutical modalities and vaccines  Develop and establish stable supply structure linke
Slide 31: Restructuring Business Portfolio
Restructuring Business Portfolio Sustained Growth by Adding Growth from New Drugs on Stable Revenue Platform 2026 Medium-term Business Plan and after Before 2023 Improve product Medium-term lineups to accelerate Business Plan growth New drugs 2023 Medium-term Stable growth Revenue Business Plan amid
Slide 32: Market Composition of Antibacterial Drugs that Require Stable Supply
Market Composition of Antibacterial Drugs that Require Stable Supply Due to the promotion of proper use and the rising elderly population, the frequency of use of antibacterial drugs is increasing annually Penicillin G Changes in the quantity of injectable (10,000 units) 16,000 antibacterial drugs (
Slide 33: Convert Gifu Plant into Domestic Production Base for Specified Critical Materials
Convert Gifu Plant into Domestic Production Base for Specified Critical Materials With financial support from the government, upgrade production equipment at the Gifu plant, the only plant in Japan that meets the conditions for penicillin production Will become a production plant for the bulk drugs
Slide 34: Developing Differentiated and Innovative Pipeline of New Drugs
Developing Differentiated and Innovative Pipeline of New Drugs Reliably and at the Fastest Pace Approval application 2026 Medium-term Business Plan 2026 Medium-term Business Plan The number of approval application: 8 Plan: Approval application after FY2027 2024 2025 2026 2027 2028 2029 ARCT-154、2301
Slide 35: Growth Strategy: Our Target Direction
Growth Strategy: Our Target Direction Become a company that constantly launches new drugs and shares them with the world  Dengue fever vaccine  6-in-1 compound vaccine: Approval application 2027  ME3183: Approval application 2027  KDｰ416: Approval application Become a company that is a critical
Slide 36: Information in this material is not intended to solicit sale or purchase of shares
 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 — Investor Day (June 2024) on 6ix

Meiji — Investor Day (June 2024)

Slide 1: IR Day: The 2026 Medium-term Business Plan

Slide 2: Agenda

Slide 3: 1. Growth Strategy of Food Segment

Slide 4: Efforts to Improve ROIC

Slide 5: Accelerate to Grow Overseas Business

Slide 6: Dairy and Food Solutions Businesses

Slide 7: Chocolate Business

Slide 8: Nutrition Business

Slide 9: 2. The Fusion of Sustainability and Business

Slide 10: Evolve the Meiji ROESG Management

Slide 11: Composition of Meiji ROESG

Slide 12: Structure of Meiji Group Sustainability Activities

Slide 13: Unique Initiatives Related to Materiality

Slide 14: Pursue Added Value in Japan Business – Innovate Product Development Process

Slide 15: Outline of Meiji Sustainable Products Certification System

Slide 16: Promote Ethical Consumption through Meiji Sustainable Products

Slide 17: Building a Supply Chain that Takes Into Account Human Rights and the Environment

Slide 18: Sustainable Sourcing: Raw Milk, Cocoa

Slide 19: Sustainable Sourcing: Palm Oil, Soybean

Slide 20: Improve Water Resource Recharge through Forest Conservation Activities

Slide 21: ESG Investments of JPY50 bn during the 2026 Medium-Term Business Plan

Slide 22: Promotion Structure for Strengthening Sustainability Activities

Slide 23: Selected to Sustainability Transformation Brands (SX Brands 2024)

Slide 24: 3. Pharmaceutical Segment Growth Strategy

Slide 25: Review of 2020 and 2023 Medium-term Business Plans

Slide 26: Efforts to Improve ROIC

Slide 27: Strategy for Domestic Pharmaceuticals (Japan) Business

Slide 28: Strategy for Overseas Pharmaceuticals Business

Slide 29: Strategy for Vaccines and Veterinary Drugs Business

Slide 30: Strategy on Each Function

Slide 31: Restructuring Business Portfolio

Slide 32: Market Composition of Antibacterial Drugs that Require Stable Supply

Slide 33: Convert Gifu Plant into Domestic Production Base for Specified Critical Materials

Slide 34: Developing Differentiated and Innovative Pipeline of New Drugs

Slide 35: Growth Strategy: Our Target Direction

Slide 36: Information in this material is not intended to solicit sale or purchase of shares