Lacto Japan Co., Ltd. · TSE:3139
Lacto Japan — FY2021 Earnings Presentation
31 slides from Lacto Japan's earnings presentation, January 2022
Slide 1: Financial Results for the Fiscal Year Ended November 2021
Financial Results for the Fiscal Year Ended 株式会社ラクト・ジャパン November 2021 マスタータイトル (FY11/2021) © Lacto Japan Co., Ltd.
Slide 2: Contents
Contents Consolidated Financial Results for FY11/2021 and 1 Forecasts for FY11/2022 P. 3 Overview of Business Divisions and Outlook 2 in FY11/2022 P. 11 3 New Corporate Business Plan “NEXT-LJ2024” P. 21 2 © Lacto Japan Co., Ltd.
Slide 3: Consolidated Financial Results for FY11/2021 and Forecasts for FY11/2022
Consolidated Financial Results for FY11/2021 and Forecasts for FY11/2022 3 © Lacto Japan Co., Ltd.
Slide 4: FY11/2021 Financial Highlights
FY11/2021 Financial Highlights Despite the impact of the COVID-19 pandemic throughout the year, consolidated net sales remained flat year-on-year. Ordinary income also increased slightly after foreign exchange adjustment. Consolidated Net Sales: +0.0% YoY ／ ｰ3.6% vs. Forecast (revised forecast) ▍ In
Slide 5: FY11/2021 Consolidated Financial Results
FY11/2021 Consolidated Financial Results (Millions of Yen) FY11/2021 FY11/2020 Forecast YoY vs. Forecast Actual Change (%) Change (%) Net sales 110,837 115,000 110,883 0 ｰ3.6 Ordinary income 2,780 2,810 2,681 ｰ3.6 ｰ4.6 Ordinary income ratio (%) 2.5 2.4 2.4 (Foreign exchange impact on (29) － (ｰ77) or
Slide 6: Factors Contributing to Increase/Decrease in Sales and Ordinary Income
Factors Contributing to Increase/Decrease in Sales and Ordinary Income ⃞ Net sales ⃞ Ordinary income Improved Unit Foreign gross margin (Million yen) (Million yen) price exchange +198 +473 Sales Foreign +2,957 exchange increase +2 -108 SG&A expenses -186 Others -5 Volume -3,385 Includes • Milk, chee
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets (Million yen) FY11/2020- FY11/2021- end end Difference Main factors of change Current assets 40,623 50,018 9,394 Cash and cash equivalents 5,004 5,510 506 Increase in trade notes and Trade notes and accounts accounts receivable receivable 13,849 19,277 5,427 Increase in i
Slide 8: Consolidated Cash Flow Statements
Consolidated Cash Flow Statements (Million yen) FY11/2021 Main factors of change Decrease in cash flows from Cash flows from operating activities -4,037 operating activities Increase in products (cheese) due to increased orders from customers in Cash flows from investing activities -291 preparation
Slide 9: FY11/2022 Estimated Net Sales and Sales Volume by Business Division
FY11/2022 Estimated Net Sales and Sales Volume by Business Division □ Net sales (Million yen) FY11/2021 FY11/2022 1st Half 2nd Half Full Year Forecasts Dairy ingredients and Cheese 36,952 39,528 76,481 85,000 Meat Products 6,769 7,509 14,278 15,000 Asian Business (Dairy Ingredients) 6,809 8,944 15,7
Slide 10: FY11/2022 Consolidated Earnings Forecasts
FY11/2022 Consolidated Earnings Forecasts (Million yen) FY11/2022 FY11/2021 Actual YoY YoY Forecasts Difference Change (%) Net sales 110,883 126,000 +15,116 +13.6 Ordinary income 2,681 2,900 +218 +8.1 Ordinary income ratio (%) 2.4 2.3 Net income attributable to 1,959 2,100 +140 +7.2 owners of the pa
Slide 11: Overview of Business Divisions and Outlook in FY11/2022
Overview of Business Divisions and Outlook in FY11/2022 11 © Lacto Japan Co., Ltd.
Slide 12: Business Environment Expected in FY11/2022
Business Environment Expected in FY11/2022 ⃞ Although the domestic business continues to be affected by the domestic inventory surplus, demand for imported raw materials will turn to a recovery trend along with the recovery of commercial demand. ▍ Commercial demand is projected to recover gradually
Slide 13: Changes and estimates for domestic skim milk powder inventories
Changes and estimates for domestic skim milk powder inventories and overview of measures (Thousand tons) □Skim Milk Powder Domestic inventory volume 90k-ton level 100 80 60 40 20 0 Aug Jan Mar Dec Aug Feb May Sep Jan Mar Dec Nov (projected) Dec (forecast) Jan (forecast) Feb May Sep Jan Mar Aug Apr J
Slide 14: International Prices of Dairy Products (last 3 years)
International Prices of Dairy Products（last 3 years） [Factors behind rise in international market prices in 2021] Decrease in raw milk production volume in major production areas (feed and energy prices/climate) Post COVID-19 rapid demand growth Skim milk powder（EUR/ton) 7,000 Butter（EUR/ton)
Slide 15: Overview of Dairy Ingredients and Cheese Division
Overview of Dairy Ingredients and Cheese Division ⃞ Overview of FY11/2021 □ Net Sales (Million yen) ▏ The impact of COVID-19 pandemic was felt throughout the year, and both sales 85,000 value and sales volume were sluggish. There was a decrease in the volume of 78,330 76,481 tenders by the governmen
Slide 16: Overview of Meat Products Division
Overview of Meat Products Division □ Net Sales ⃞ Overview of FY11/2021 (Million yen) 15,000 ▏ In the imported pork business, sales of ingredients for ham and 14,278 11,895 sausages, etc. were buoyant, supported by strong home meal demand. ▏ Sales of meat products such as dry-cured ham and salami wer
Slide 17: (ref.) Breakdown of Meat Products (Sales volume)
（ref.）Breakdown of Meat Products（Sales volume） （tons） □Meat Products Division: Sales volume 【Others】 30,000 • Beef • Chicken 25,000 • Honey, etc. FY11/19： 300 tons FY11/20： 900 tons 20,000 FY11/21： 1,750 tons 15,000 Others 10,000 Dry-cured ham and salami 5,000 Pork preparations Pork 0 FY11/19 FY11/2
Slide 18: Overview of Asian Business (Dairy Ingredients Div.)
Overview of Asian Business (Dairy Ingredients Div.) ⃞ Overview of FY11/2021 □ Net Sales (Million yen) 18,000 ▏ Despite the acquisition of new business and expansion of transactions 17,025 15,754 with existing customers, sales of raw materials for dairy ingredient preparations to Japan declined due t
Slide 19: Overview of Asian Business (Cheese Div.)
Overview of Asian Business (Cheese Div.) ⃞ Overview of FY11/2021 □ Net Sales (Million yen) 3,650 ▏ Owing to the impact of severe lockdowns in countries such as Thailand 3,324 and Malaysia, food service-related sales, including restaurants and 2,895 bakeries, were sluggish but sales of ingredients fo
Slide 20: (ref.) Supply-demand trends and estimates for dairy products in China
（ref.）Supply-demand trends and estimates for dairy products in China (10k tons, kg/person) 2021 2030 2017 2018 2019 2020 Change (forecast) (forecast) vs. 2020 (%) Raw milk production volume 3,149 3,177 3,305 3,546 3,591 4,389 +23.8% (of which, production by cows) 3,039 3,075 3,201 3,440 － － － Import
Slide 21: New Corporate Business Plan “NEXT-LJ2024”
New Corporate Business Plan “NEXT-LJ2024” 21 © Lacto Japan Co., Ltd.
Slide 22: NEXT-LJ2024: Recognition of Business Environment
New Corporate Business Plan “NEXT-LJ2024”: Recognition of Business Environment ▍ General view • Soaring raw material prices against the backdrop of post COVID-19 rapid demand growth • Rise in transportation costs due to soaring energy prices • Increasing demand for functional food ingredients based
Slide 23: NEXT-LJ2024: Basic Policy and Numerical Targets
New Corporate Business Plan “NEXT-LJ2024”: Basic Policy and Numerical Targets Capturing the post COVID-19 market recovery and growth of Asian business Accelerate building next-generation businesses at the same time FY11/2021 FY11/2022 FY11/2024 Actual Forecasts Targets Net sales 110.8 billion yen 12
Slide 24: NEXT-LJ2024: Financial and Dividend Policy
New Corporate Business Plan “NEXT-LJ2024”: Financial and Dividend Policy Medium- to long-term capital requirements and financial targets Dividend policy ⃞ Capital requirements for Asian Business, pillar In order to achieve medium- to long-term growth, we will of growth strategy combine investment in
Slide 25: Priority Measure: Development of Japanese dairy product export business
Priority Measure: Development of Japanese dairy product export business We will build an export and sales business for “domestically produced dairy products” by leveraging Lacto Japan's dominance □ Export value of Japanese milk and milk products ▏ Japanese government to strengthen dairy product expo
Slide 26: Priority Measure: Expansion of Cheese Manufacturing and Sales Business
Priority Measure: Expansion of Cheese Manufacturing and Sales Business Steadily implementing growth-oriented initiatives in line with the medium- term plan despite the challenging environment □ Asian Business (Cheese Div.) ▍ Sales expansion strategy in major regions Sales Volume China: Use powerfu
Slide 27: Priority Measure: Reinforcement of local sales system
Priority Measure: Reinforcement of local sales system 2019~ Organized agent sales network April 2020 Dispatched dairy ingredient sales representative Shanghai September 2019 Started operation of local subsidiary for purpose of selling dairy ingredients Thailand 2019~ Philippines Dispatched cheese sa
Slide 28: Priority Measure: Accelerated development of functional food ingredients business
Priority Measure: Accelerated development of functional food ingredients business Accelerate development of functional food ingredients business and establish it as “pillar of growth businesses” ▍ Aggressive development of □ Functional Food Ingredients (Sales volume) marketing activities （tons） • De
Slide 29: Lacto Japan's Value Creation
Lacto Japan's Value Creation [Our Purpose] To contribute to the nutrition and health of people and the enjoyment of food through the stable supply of safe and reliable ingredients and to continue growing and developing as a company that makes a difference to society [Value creation through business
Slide 30: Materialities and Individual Measures
Materialities and Individual Measures Related SDGs Selection of suppliers (audit, inspection, sample testing) Supplying safe Thorough quality control (traceability, food defense, temperature control, etc.) and reliable food Reinforcement of processed cheese manufacturing system (review of phys
Slide 31: Projections disclaimer
This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may differ materially from these projections as a result of changes in the business environment and other risks and uncer