Kagome Co., Ltd. · TSE:2811
Kagome — FY2017 2Q Earnings Presentation
22 slides from Kagome's earnings presentation, Aug 2, 2017
Slide 1: Results Briefing Materials for FY2017/2Q
1/22 Results Briefing Materials for FY2017/2Q Wednesday, August 2, 2017 Kagome Co., Ltd. (2811) http://www.kagome.co.jp/company/ir Copyright © KAGOME CO., LTD. All rights reserved.
Slide 2: Today’s Topics
2/22 Today’s Topics I. Summary of Financial Results for FY2017/2Q and Future Initiatives ・ Both sales and profits increased. Financial results were revised upward. ・ The Yasai Seikatsu 100 Smoothie achieved a significant increase. ・ Progress was made in earnings structural reforms and work style ref
Slide 3: FY2017/2Q Consolidated Results
3/22 FY2017/2Q Consolidated Results vs. forecasts at the Consolidated results Year on year beginning of the term Net sales ¥104.1 B +¥5.8 B +6% +¥3.1 B Operating income ¥6.2 B +¥0.7 B +12% +¥1.1 B Ordinary income ¥6.7 B +¥1.0 B +18% +¥1.4 B Net income* ¥4.8 B +¥1.6 B +49% +¥1.3 B * Quarterly net inc
Slide 4: FY2017/2Q Results by Segment
4/22 FY2017/2Q Results by Segment Unit: 100 million yen Unit: 100 million yen Net sales Operating income FY2016 FY2017 FY2016 FY2017 Rate of Rate of Change Change change change Domestic processed 690 747 + 57 +8% 32 51 +19 +59% food business Domestic agriculture 63 61 -2 +3% 10 3 -7 -70% business In
Slide 5: FY2017/2Q Domestic Processed Food Business
5/22 FY2017/2Q Domestic Processed Food Business Sales of the Yasai Seikatsu 100 Smoothie achieved an increase of ¥3.6 B Feeling of healthiness created 330 ml paper container with cap Good when feeling slightly hungry by vegetables The product has attracted new customers in their 20s and 30s who are
Slide 6: FY2017/2Q Domestic Processed Food Business
6/22 FY2017/2Q Domestic Processed Food Business Strong performance of tomato juice Expansion of the sales areas of GREENS with function claims Sales increased 30% from a year ago Release of vegetable juice with function claims Renewal as additive-free fresh Smoothie The product will be The sales are
Slide 7: FY2017/2Q Domestic Processed Food Business
7/22 FY2017/2Q Domestic Processed Food Business Holding of the “Neapolitan Stadium” event Strong performance of Tsubuyori Yasai Strong performance of Lycopene Cholestefine Strong performance of contracted service-based products for delicatessens sold at convenience stores and supermarkets Sales thro
Slide 8: FY2017/2Q Domestic Agriculture Business
8/22 FY2017/2Q Domestic Agriculture Business Both sales and income decreased due to a decline in fresh tomato market prices Changes in tomato market prices Super-vegetable Baby leaves * Tomato market prices at the Tokyo 550 Metropolitan Central Wholesale Market (Yen per kilogram) 500 450 400 350 201
Slide 9: FY2017/2Q International Business
9/22 FY2017/2Q International Business United States: Products for business use performed strongly Australia: Sales increased but income decreased due to the effects of heavy rainfall U.S.: Kagome USA, Inc. Australia: Kagome Australia Pty Ltd. Strong performance of Decline in yields of the solution-t
Slide 10: Factors Contributing to Operating Income Changes in FY2017/2Q
10/22 Factors Contributing to Operating Income Changes in FY2017/2Q Unit: 100 million yen First half of FY2016 55 Increase in income due to higher sales Change in the composition of sales and increase of +17 outsourcing of production -7 Change in raw material prices, etc. ▲ +1 Increase in equipment
Slide 11: Earnings structural reforms/way of working reforms
11/22 Earnings structural reforms/way of working reforms Earnings structural reforms Way of working reforms Marginal profit- Teleworking oriented system management Inventory Staggered working reduction hour system Improved Health and production productivity efficiency management Copyright © KAGOME C
Slide 12: Changes in Consolidated Balance Sheet for FY2017/2Q
12/22 Changes in Consolidated Balance Sheet for FY2017/2Q Total assets/liabilities and net assets Unit: 100 million yen ¥206.4 B (down ¥13.4 B from the end of FY2016) Current assets -186 ・Decrease in cash -180 流動資産 1,069 Current assets ・Decrease in inventories -41 1,255 Fixed assets +52 ・Increase in
Slide 13: Changes in Goodwill for FY2017/2Q
13/22 Changes in Goodwill for FY2017/2Q Goodwill ¥6.0 billion (- ¥0.5 billion) UG UG-Turkey PBI Dec. 31, 2016 65 AKIRA Seeds Jun. 30, 2017 60 Unit: 100 million yen 0 20 40 60 80 • Increase of ¥100 million due to the acquisition of the shares of AKIRA Seeds • Decrease of ¥400 million due to the amort
Slide 14: Cash Flows for FY2017/2Q
14/22 Cash Flows for FY2017/2Q Unit: 100 million yen FY2016 FY2017 Change Cash flows from operating activities (A) +86 +129 +43 Cash flows from investing activities (B) -129 +34 +163 Disbursement and proceeds pertaining to time deposits and securities (C) -100 +102 +202 Free cash flows (A+B-C) +57 +
Slide 15: Today’s Topics
15/22 Today’s Topics I. Summary of Financial Results for FY2017/2Q and Future Initiatives II. Progress of Mid-Term Management Plan III. FY2017 Full-Year Results Forecasts Copyright © KAGOME CO., LTD. All rights reserved.
Slide 16: Progress of Mid-Term Management Plan
16/22 Progress of Mid-Term Management Plan Quantitative targets for FY2018 in the mid-term management plan Consolidated net sales: ¥220 billion (as initially planned) Consolidated Revised operating income margin: 6% ¥13.2 billion upward in February 2017 Revised ROE: 8% upward in February 2017 （単体） （
Slide 17: Progress of Mid-Term Management Plan
17/22 Progress of Mid-Term Management Plan NetInternational salesbusiness plan Operating income plan 2,500 International business Domestic agriculture business 140 ¥13.2 B Domestic agriculture business Domestic processed food business Domestic processed food business ¥12.5 B ¥217.2 B ¥220.0 B ¥2
Slide 18: Today’s Topics
18/22 Today’s Topics I. Summary of Financial Results for FY2017/2Q and Future Initiatives II. Progress of Mid-Term Management Plan III. FY2017 Full-Year Results Forecasts Copyright © KAGOME CO., LTD. All rights reserved.
Slide 19: FY2017 Full-Year Results Forecasts
19/22 FY2017 Full-Year Results Forecasts Results forecasts by segment Unit: 100 million yen Unit: 100 million yen Net sales Operating income FY2016 FY2017 FY2016 FY2017 Rate of Rate of Change Change change change Domestic processed 1,469 1,575 +106 +7% 81 105 +24 +30% food business Domestic agricu
Slide 20: Expected Dividends for FY2017
20/22 Expected Dividends for FY2017 ◆Expected dividends Expected dividends for FY2017 as of the beginning of the term: 27 yen per share Expected dividends for FY2017 after revision: 28 yen per share Copyright © KAGOME CO., LTD. All rights reserved.
Slide 21: Integrated Report
21/22 Integrated Report Copyright © KAGOME CO., LTD. All rights reserved.
Slide 22: Note
22/22 Note All information contained herein on the current plans, forecasts and strategies of Kagome that does not consist of historical facts is based on judgments made by Kagome’s management from currently available information. We therefore request that you refrain from relying comprehensively an