Slide 1: Financial Results for the Six Months Ended September 30, 2018
Financial Results for the Six Months Ended September 30,2018 FP Corporation November 07, 2018 FP Corporation ・
Slide 2: Cautions for Handling This Material
Cautions for Handling This Material We have paid extremely close attention to the information provided through presentations at this session and contained in the handouts. The forward-looking statements included in the information are our estimates based on the information available at the time of p
Slide 3: Table of Contents
= Table of Contents = Results and Plan Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami ... 4 For Expansion of Corporate Value President Morimasa Sato . . . 15 Supporting Data . . . 45 FP Corporation ・
Slide 4: Consolidated Financial Results
Consolidated Financial Results for the Six Months Ended September 30,2018 Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami FP Corporation ・
Slide 5: Financial Results Summary
Financial Results Summary (Results for the first half of FY ending March 2019) First half performance First half projections full year projections Record high FY ended March2018 FY ending March2019 FY ending March2019 FY ending March2019 ✔Highest sales ever increase/ Year-on progress progress Unit:
Slide 6: Increase/Decrease in Ordinary Profit
0.0 Increase/Decrease in Ordinary Profit 20.0 40.0 60.0 80.0 (Results for the first half of FY ending March 2019) 100.0 120.0 140.0 160.0 Unit: billion yen 前年 Fiscal year ended March 2018 13.55 First half 6.63 Second half 6.92 The Price -1.48 －0.08 Plan difference of material 原料 Rise in prices of im
Slide 7: Outlook for the Planned Ordinary Profit
Outlook for the Planned Ordinary Profit 0.0 20.0 40.0 60.0 80.0 100.0 (Plan for the FY ending March 2019) 120.0 140.0 160.0 Unit: billion yen 前年 Fiscal year ended March 2018 13.55 1st half 2nd half First half 6.63 Second half 6.92 Plan difference 1st half 2nd half Outlook change point The Price -3.0
Slide 8: Capital Investments and R&D cost
Capital Investments and R&D cost (Results for the first half of FY ending March 2019) First half performance First half projections full year projections FY ended March 2018 FY ending March 2019 FY ending March 2019 FY ending March 2019 Increase / Progress Progress Unit: million y en Performance Per
Slide 9: Balance Sheet
Balance Sheet (Results for the first half of FY ending March 2019) Previous consolidated First half of the consolidated fiscal year fiscal year 'FY ended March 2018 'FY ending March 2019 Increase/ Year-on- Breakdown of m ain increases As of March 31,2018 As o f Sep temb er 3 0 ,2 0 1 9 Unit: million
Slide 10: Cash Flows
Cash Flows (Results for the first half of FY ending March 2019) Results for first half 'FY ended March 2018 'FY ending March 2019 Unit: million yen Performance Performance Breakdown of Main Items Income before income taxes 6,366 Depreciation 6,506 CF from operating activities 4,014 12,068 In crease
Slide 11: Plan
Plan for the fiscal year ending March 2019 FP Corporation ・
Slide 12: Outline of Plan for Account Settlement
Outline of Plan for Account Settlement (Plan for the FY ending March 2019 ) Results for Full year Full year projections First half projections FY ended March2018 FY ending March2019 FY ending March2019 increase/ Year-on increase/ Year-on Unit: million yen Performance percentage Planned percentage de
Slide 13: Planned Increase/Decrease in Ordinary Profit
0.0 Planned Increase/Decrease in Ordinary Profit 20.0 40.0 60.0 80.0 100.0 (Plan for the FY ending March 2019 ) 120.0 140.0 160.0 Fiscal year ended March 2018 Unit: billion yen 前年 13.55 First half 6.63 Second half 6.92 The Price of material -2.60 －1.40 －1.20 Year on year Sales Efforts +4.80 +1.85 +2
Slide 14: Planned Capital Investment and R&D Cost
Planned Capital Investment and R&D Cost (Plan for the FY ending March 2019 ) Results for Full year full year projections First half projections FY ended March 2018 FY ending March 2019 FY ending March 2019 Increase / Increase / Progress Unit: million y en Performance Planned decrease Year-on-year Pl
Slide 15: To Increase Corporate Value
To Increase Corporate Value President Morimasa Sato
Slide 16: Trend in Raw Material Prices and Product Price Revisions
Trend in Raw Material Prices and Product Price Revisions Price revision Price revision announced in announced in May 2017 February 2018 February 2017 April 2018 203 January 2018 204 Latest Domestic price of July 2017 195 204 general polystyrene 185 April 2016 163 Latest April 2018 160 October 2017 D
Slide 17: Circumstances Surrounding Retail Industry
Circumstances Surrounding Retail Industry Integration Current Retailers have Reorganization of unprofitable segments trend more earning power Decrease in Increase in sales customers VS per customer Future trends FP Corporation’s actions Expansion of home meal replacement Increase in microwavable pro
Slide 18: Changes in the Number of Households
Changes in the Number of Households Total number of households Total of one-person households Households comprising 2015 one person aged 65 or over 2020 2025 Peak in 2023 2030 Peak in 2032 2035 2040 Source: The graph was prepared by FPCO based on data from the National Institute of Population and So
Slide 19: Trend in Scale of Home Meal Replacement Market
Trend in Scale of Home Meal Replacement Market 2017: Trillion yen 10.1 trillion yen 10 9.8 9.6 9.3 8.7 8.9 8 8.2 8.1 8.4 7.8 7.9 8.1 7.6 7.2 6 Cooking at home: Eating out: Approx. 36.1 trillion yen Approx. 25.4 trillion yen Home meal replacement 4 Approx. 10.1 trillion yen Markets expected to grow i
Slide 20: Sales Shares of Original Products
Sales Shares of Original Products Conventional materials Conventional materials 2Q results (78% in the same period a year earlier) New products made of conventional materials* (54% in the same period 78% a year earlier) Results (Plan) as of Eco PSP the end of March 2019 60% Eco APET 59% Original pro
Slide 21: New Products Creating New Markets
New Products Creating New Markets MFP Runto Series MFP Rikotto Series Trans- The Chateau Platter Series parent Eco-PSP MFP PP OPET Microwavable Eco- PSP MSD Labor-saving Environmentally Eco-APET friendly Securely Closed Eco- The Takezarazen Series Products APET Eco- Undercut The container and lid ar
Slide 22: Nationwide Spread of Namakara Sozai
Nationwide Spread of Namakara Sozai Namakara Sozai now offered by 114 companies Eating a directly heated fresh ingredients is a crispy and delicious experience. Development of seasonal food items is gradually taking root. Point 1 Delicious After microwaving, a high percentage of nutrients remains un
Slide 23: Menu Examples (Company A)
Menu Examples (Company A) Fresh meat division Fresh fish division Prepared food division Hot pot division 499 yen 銘柄豚のポン酢ジュレ温しゃぶ 499 yen 海老と葱の辛味噌温野菜 499 yen おとめ豚の回鍋肉丼 599 yen 鶏もも肉と5種具材の鍋 国産鶏水餃子の生姜香る濃 自家製水餃子と5種具材の鍋 599 yen 厚白湯スープ 499 yen 599 yen 三元豚の回鍋肉 1日の1/2の野菜が摂れる 銘柄豚の胡麻ジュレ温しゃぶ 499 yen 海鮮5種と葱の辛味噌温
Slide 24: Collection of Plastic Resources
Collection of Plastic Resources * The corresponding values for the number of containers and bottles were calculated based on the following standard weights. Foam tray: approx. 4 grams; transparent container: approx. 10 grams; PET bottle: approx. 25 grams Annual amount (number) of recycled containers
Slide 25: Capacity to Supply 50,000 tons of Recycled PET Materials across Japan
Capacity to Supply 50,000 tons of Recycled PET Materials across Japan Annual use of 80,000 tons PET materials September 2017 Taxation reflecting dumping 70,000 tons Virgin by China FY ended March 2015- Latest trend Chubu 30,000 Expansion of domestic Virgin tons demand in China FY ended March 201
Slide 26: Soaring Material Prices -> FPCO's Strength
Soaring Material Prices -> FPCO’s Strength Eco Tray / Eco APET CO2 Reduction Eco Tray CO2 reduction effect Eco APET In FY ended March 2018, CO2 emissions were cut by 113,000 tons a year (Eco Tray: 37,000 tons / Eco APET 70,000 tons / Eco OPET 6,000 tons) Comparison between FPCO’s virgin products and
Slide 27: Diversity Management That Maximizes Abilities
Diversity Management That Maximizes Abilities October 2017 (Toyo Keizai, Inc.) Sorting centers: 10 locations Disabled employment ranking: 7 in-house locations 1 location with a contractor 1st for 4 consecutive years 2 locations with business alliance partners February 2018 (Tokyo Voluntary Actio
Slide 28: Logistics Centers and Production Sites across Japan
Logistics Centers and Production Sites across Japan Emergency power generator Fuel tank Business continuity plan (BCP): Ensuring stable supply in the event of a disaster Emergency power generators installed at all 21 logistics centers in Japan Power supply for 72 hours and fuel reserve have been sec
Slide 29: Use of IT for Improving Delivery Efficiency and Accuracy
Use of IT for Improving Delivery Efficiency and Accuracy Route Planner * Excluding values for FPCO Dia Foods * Results for first half of FY ending March 2019 RD Check System Changes in load per sales/delivery vehicle (Unit: Sai) *1 sai = 0.027 826 474 m3 57th 1,401 1,397 1,391 term 1,384 56th 1,373
Slide 30: Reducing Use of Consolidated Cargo Services
Reducing Use of Consolidated Cargo Services Ratio between transportation via our trucks Ordinary route and consolidated cargo services Arriving the next morning via our trucks: Now 96.4% Standard Customers delivery center Our trucks: 96.4% Data Delivery center of other site Ordinary route Arriving n
Slide 31: Higher Work Efficiency Enabled by Voice Picking System
Higher Work Efficiency Enabled by Voice Picking System 1) Hear instructions Productivity enabled by voice picking 2) Pick with both hands Items/Hour Sept. 2018 March 2018 798 items 776 items per hour per hour Immediately after introduction of the system: 300 items per hour 3) Respond NovDec Jan Feb
Slide 32: Streamlining of Logistics Division
Streamlining of Logistics Division By packing products and goods together in the same cardboard box, we achieved By consolidating inventory and picking functions, reduction of cardboard cost to streamlining worth 50 million yen 92% compared with before per year is expected to be achieved despite a m
Slide 33: Higher Work Efficiency Enabled by Automation (Logistics Division)
Higher Work Efficiency Enabled by Automation (Logistics Division) Automating transportation of Cross Transportation from one AGV goods in warehouses Dock Center warehouse to another (Automated guided vehicle) - Unmanned transportation of goods on specified routes (on the same Connecting warehouses t
Slide 34: Higher Work Efficiency Enabled by Automation (Manufacturing Division)
Higher Work Efficiency Enabled by Automation (Manufacturing Division) FY ended March 2018 Plan for FY ending March 2019 Streamlining that is equivalent Streamlining that is equivalent to to the reduction of approx. the reduction of approx. 94 workers 118 workers Effect: 300 million yen/year Effect:
Slide 35: For Higher Product Sales
For Higher Product Sales Manufacturing Sales capability and ability and sales to collect information Receiving more orders FPCO online Product purchase Smartphone MD Wholesaler Customers who placed orders by phone/fax - Selecting items and consolidating inventory Small-lot shipment - Enhancing lineu
Slide 36: Strategic Investment
Strategic Investment Capital Investment Social Conditions Investment Effect Development of the Ratio of Increase profitability world’s first material original products <Growing microwave market> with high value-added 2012-: OPET equipment No. 1 59% products ESG investment in ESG investment in core b
Slide 37: Growth Strategies of FPCO
Growth Strategies of FPCO Considering overseas expansion Considering M&A Long-term plan Net sales: ¥300 bn Growth strategy 2 Ordinary profit: ¥30 bn (Net sales) Billion yen (Ordinary profit) Home delivery market 300 Frozen food market 30 Markets of materials and consumables 250 25 Growth Strategy 1
Slide 38: Ocean Plastic Pollution: Background and Current Reality
Ocean Plastic Pollution: Background and Current Reality Due to China’s waste import restrictions, the problem of waste disposal has become serious in Problem of ocean microplastics Europe and other regions. These two problems are combined and develop into a major global issue - Recycle and reuse at
Slide 39: Preventing Inputs of Plastics from Land into the Ocean
Necessary Measure: Preventing Inputs of Plastics from Land into the Ocean Ranking of countries in the inputs of plastic waste from land into the ocean (2010 estimate) 1st: China 3.53 mn tons/year 2nd: Indonesia 1.29 mn tons/year 3rd: Philippines 0.75 mn tons/year 4th: Vietnam 0.73 mn tons/year 5th:
Slide 40: Recycling of Plastics
Recycling of Plastics Single PET bottles material Material recycling Approx. [Recycling of materials] 0.75 mn tons Food containers Approx. 0.8 mn tons Thermal recycling [Thermal recovery] Soft packaging Approx. 3.0 mn tons Composite material 40
Slide 41: Necessary Measure: Promoting 3Rs
Necessary Measure: Promoting 3Rs (Reduce, Reuse, and Recycle) R ecycle Recycle waste and it will be raw materials again. Collect and recycle single materials that are suitable for material recycling. R educe Use of thinner, lighter materials Provide lightweight, resource-saving products. Appropriate
Slide 42: Strategy for Plastic Material Recycling by the Ministry of the Environment
Strategy for Plastic Material Recycling by the Ministry of the Environment (Rough Plan) Strategy for Plastic Material Recycling Ocean Plastics Charter endorsed at by the Ministry of the Environment Charlevoix G7 Summit in Canada (Rough Plan): Milestone We aim to reduce emissions of single-use plasti
Slide 43: Specific Measures for Promoting 3Rs
Specific Measures for Promoting 3Rs Awareness Recycle Reducing waste plastics by means Reduce Reducing waste plastics by Activities for raising consumers’ of tray-to-tray recycling introducing thinner food containers campaign awareness of tray recycling FY2020 target: Annual amount of Reducing the w
Slide 44: To Increase Corporate Value
To Increase Corporate Value “We ensure that we deliver the best-quality products at competitive prices when they are needed.” Hardware Software Balance People We adhere to the FPCO-DNA and continue to make proposals with the foresight of the near future based on our workplace-oriented policy and cus
Slide 45: Supporting Data
Supporting Data FP Corporation ・
Slide 46: Explanation of terms
Explanation of terms PS ： Polystyrene PET ： Polyethylene terephthalate PP ： Polypropylene Multi FP (MFP) ： An formed PS (polystyrene) container with cold and heat resistance to temperatures between -40ºC and +110ºC and with superior oil and acid resistance and thermal insulation. Multi Solid (MSD) ：
Slide 47: Raw Material Trends
Raw Material Trends FY ended Mar 2018 May Each company announced price revision FY ended Mar 2015 Other companies again announced Due to the temporary price drop of raw materials, Naphtha revised prices the difference between the compression of the price range FY ended Mar 2014 and the timing E
Slide 48: World's First Sheets and Materials
World’s First Sheets and Materials Evolution from a sheet processing manufacturer PP: polypropylene PS: polystyrene PSP: foamed polystyrene Easy to mold Heat-resistant: +110ºC Low raw material ratio High oil resistance Weight reduction is possible Foam is hard and resistant to High ins
Slide 49: Boosting the production capacity of original products
Boosting the production capacity of original products 2010 2011 2012 2013 2014 2015 2016 2017 2018 Feb. 2010: Market release of the Multi FP (MFP) Feb. 2012: Market release of the Multi Solid (MSD) May 2012: Market release of the Eco APET Nov. 2010 Jun. 2014 March 2016 Chubu PET Recycling Plant Nish
Slide 50: Factors influencing Ordinary Profit
Factors influencing Ordinary Profit Unit:100 million yen '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 Plan '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full half half year half half year ha
Slide 51: Trends in Capital Investment and R&D Costs
Trends in Capital Investment and R&D Costs FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ending FY ending FY ending 2003 2004 2005 20
Slide 52: Initiatives to Market Agricultural Products and Goods
Initiatives to Market Products Market size: ¥500 billion Goods Market size: Over ¥2.5 trillion Containers for simple packaging Supplies and packaging materials/equipment In stores Packaging outside stores Retail / Ready-made Meals / Restaurant Dining Agricultural Processed Fresh fish Livestock Prepa
Slide 53: Information on the Facility Tour
【 Information on the Facility Tour 】 Contact: Takashima at the Corporate Planning Department (TEL)+81-3-5325-7756 (MAIL)ir_7947@fpco-net.co.jp at a convenient time for you. An opportunity to take a look at the state-of-the-art Production, Distribution, Recycling operations Kanto 30 minutes from Koga