Meiji Holdings Co., Ltd. · TSE:2269

Meiji — H1 FYE March 2016 Earnings Presentation

24 slides from Meiji's earnings presentation, Nov 13, 2015

  1. Slide 1: Financial Results for the First Half of FYE March 2016

    Financial Results - For the First Half of FYE March 2016 - November 13, 2015

  2. Slide 2: Contents

    Contents 1. Overview for H1 of FYE March 2016 2. Progress by Segment 3. Outlook for H2 and Full-year of FYE March 2016  Business forecasts and other forward-looking statements are based on information available at the time of the release of this presentation and reasonable assumptions made by the C

  3. Slide 3: Accelerate growth and achieve further improvement in profitability

    Basic Policies Targets Accelerate growth and achieve further Fiscal 2017 improvement in profitability （Announced on May 12） 1. Strengthen priority businesses and take on Net Sales 1.26 trillion yen the challenge of future growth 2. Improve profitability to withstand harsh Operating income 64.0 billi

  4. Slide 4: H1 Summary

    H1 Summary (billion yen) Initial Target Revised Plan Results （As of May 12） （As of Aug. 5） Change vs. Plan YoY Change +0.4% +5.9% Net sales 578.0 590.0 592.3 +2.3 +33.0 +23.7% +76.0% Meiji HD Operating income 19.0 27.0 33.4 +6.4 +14.4 Op. income margin 3.3％ 4.6％ 5.6％ +1.0pt +2.2pt Net income attribu

  5. Slide 5: 2. Progress by Segment

    2. Progress by Segment 5 ｜ Nov. 13, 2015 ｜ Copyright © 2015 Meiji Holdings Co., Ltd. All rights reserved.

  6. Slide 6: H1 Summary by segment

    H1 Summary by segment (billion yen) Initial Plan Revised Plan 【Op. Income】 （As of May 12） （As of Aug. 5） Results Change vs. Plan YoY Change Fresh and +1.7% +34.1% Fermented Dairy 13.7 17.4 17.7 +0.3 +4.5 Processed +3.7% +114.3% Food 2.4 3.3 3.5 +0.1 +1.8 Food +14.2% +0.9% Confectionery 1.6 2.3 2.6 +

  7. Slide 7: Food: Accelerate growth of priority businesses and pursue unique value

    Food Accelerate growth of priority businesses and pursue unique value Net Sales (billion yen)  Market growth continuing – Develop eating occasions Probiotics and 200 176.9 165.4  Expand production capacity for functional yogurt (probiotics) yogurt H2 88.5 – Stable growth with 3 brands, LG-21, R-1,

  8. Slide 8: Food: Expand business in growing overseas markets and improve profitability

    Food Expand business in growing overseas markets and improve profitability Overseas sales  Newly consolidated ice cream business in China ■Affiliates accounted for by equity method and (billion yen) non-consolidated companies ■Consolidated subsidiaries and exports  Growth of business in China is k

  9. Slide 9: Food: Respond to external environment changes

    Food Respond to external environment changes – cost increases, consumption trends, etc. YoY change in operating income  Price hike due to increase in raw (billion yen) Results - FYE March 2015 41.6 materials and energy cost Due to increa sed /de cre ase d sales +4.1 Price increase rate or YYYY.MM P

  10. Slide 10: Food: Establish sound operational foundation to improve profitability

    Food Establish sound operational foundation to improve profitability YoY change in operating income (billion yen) Results - FYE March 2015 41.6 Due to increa sed /de cre ase d sales +4.1  Improve production efficiency H1 Results Cost of go ods sold increase -5.4 Proceeding as planed Cost reduction

  11. Slide 11: Pharma: Promote sales growth and structural reforms

    Pharma Promote sales growth and structural reforms in growth business and markets Consolidated net sales  Both domain outperformed previous year CNS disorders fields Infectious diseases/ ■Agricultural chemicals and veterinary drugs (billion yen) ■Ethical pharmaceuticals  Infectious diseases 166.3

  12. Slide 12: Pharma: Grow overseas business into core business

    Pharma Grow overseas business into core business to rival domestic sales Consolidated overseas sales  Medreich became a consolidated subsidiary in 4Q of FYE March 2015 (billion yen) 42.0  Use high-volume production capability* products for Japanese market Manufacture pharmaceutical * more than 3 b

  13. Slide 13: Pharma: Focus on fields of expertise to develop new drugs

    Pharma Focus on fields of expertise to develop new drugs R&D Pipeline (◆In-house) 16.3 17.3 18.3 ME1111 [Antionychomycosis] ◆ Phase II Infectious (Overseas) diseases ME1100 Arbekacin [HABP/VABP] ◆ Phase I (Overseas) OP0595 [β-lactamase inhibitor] ◆ Out-licensing Ethical pharmaceuticals SME3110 Fluvo

  14. Slide 14: Pharma: Promote forward-looking development/investments

    Pharma Promote forward-looking development/investments and improve profitability YoY change in operating income (billion yen) Results - FYE March 2015 10.0 Due to increased/decreased sales +2.1 H1 Results Cost reduction +0.9  Promote low-cost operations Changes in other SG&A -0.4 – Cost and expense

  15. Slide 15: 3. Outlook for H2 and Full year of FYE March 2016

    3. Outlook for H2 and Full year of FYE March 2016 15 ｜ Nov. 13, 2015 ｜ Copyright © 2015 Meiji Holdings Co., Ltd. All rights reserved.

  16. Slide 16: Plan for FYE March 2016

    Plan for FYE March 2016 (billion yen) H1 H2 Full-year Results YoY Change Plan YoY Change Plan YoY Change +5.9% +2.4％ +4.1％ Net sales 592.3 +33.0 616.1 +14.2 1,208.5 +47.3 Operating +76.0% +1.6％ +29.0％ Meiji HD 33.4 +14.4 33.0 +0.5 66.5 +14.9 income Ordinary +80.7% -1.4％ +28.8％ 35.5 +15.8 33.4 -0.4 6

  17. Slide 17: Meiji HD Plan for FYE March 2016

    Plan for FYE March 2016 (billion yen) H1 Full-year Results YoY Change Plan YoY Change -15.3% -21.1% Capital expenditures 24.1 -4.3 50.8 -13.5 -1.0% -2.5% Depreciation and amortization 19.7 -0.2 40.8 -1.0 +8.2% +7.9% R&D expenses 12.9 +0.9 28.1 +2.0 Meiji HD +980.8% ― Free cash flows 46.5 +42.2 54.0

  18. Slide 18: ｜ Nov. 13, 2015 ｜ Copyright © 2015 Meiji Holdings Co., Ltd. All rights

    18 ｜ Nov. 13, 2015 ｜ Copyright © 2015 Meiji Holdings Co., Ltd. All rights reserved.

  19. Slide 19: Appendix

    Appendix 19 ｜ Nov. 13, 2015 ｜ Copyright © 2015 Meiji Holdings Co., Ltd. All rights reserved.

  20. Slide 20: Financial position as of September 2015

    Financial position as of September 2015 (billion yen) (As of March 2015) (As of September 2015) Total Assets: 877.3 Total Assets: 855.8 Results (Change) Results (Change) 298.5 Cash and Notes and 352.0 21.4 (-1.0) deposits Current accounts 104.8 (+0.5) Current Notes and liabilities payable assets acc

  21. Slide 21: Full-year: Plan by business in Food segment

    16.3 Full-year: Plan by business in Food segment (billion yen) H1 H2 Full-year Results YoY Change Plan YoY Change Plan YoY Change Fermented Dairy +4.1% -2.9% +0.6% Net sales 248.6 +9.8 233.7 -6.9 482.4 +2.9 Fresh and Operating +34.1% +1.2% +16.5% income 17.7 +4.5 15.3 +0.1 33.0 +4.6 -1.3% -0.7% -1.0

  22. Slide 22: Elimination and Corporate

    16.3 Full-year: Plan by business in Food segment (billion yen) H1 H2 Full-year Results YoY Change Plan YoY Change Plan YoY Change +1.5% +7.7% +4.6% Net sales 171.2 184.7 356.0 Other +2.5 +13.1 +15.6 Operating +2,973.5% +278.6% +534.9% income 1.1 +1.1 1.4 +1.0 2.5 +2.1 ― ― ― and Corporate Net sales -

  23. Slide 23: 16.3 H1: Analysis of consolidated operating income

    16.3 H1: Analysis of consolidated operating income (billion yen) （By Segment） First-half Food Pharma Other H1 Results - FYE March 2015 18.9 17.4 1.5 0.0 Due to increased/decreased sales +6.2 +4.1 +2.1 ― Cost of goods sold increase -5.4 -5.4 0.0 ― Cost reduction +8.5(*1) +7.6 +0.9 ― Changes in other

  24. Slide 24: 16.3 Full-year: Analysis of consolidated operating income

    16.3 Full-year: Analysis of consolidated operating income (billion yen) （By Segment） Full-year Food Pharma Other Results - FYE Results 2015 51.5 41.6 10.0 -0.1 Due to increased/decreased… +8.6 +5.2 +3.4 ― Cost of goods sold increase -10.7 -10.7 0.0 ― Cost reduction +14.8 +13.8 +1.0 ― Changes in othe

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