Morinaga Milk Industry Co., Ltd. · TSE:2264

Morinaga Milk Industry — FY2025 Earnings Presentation

48 slides from Morinaga Milk Industry's earnings presentation, May 14, 2025

  1. Slide 1: Presentation on Financial Results FYE March 2025 and Medium-Term Business Plan 2025–2028

    Morinaga Milk Industry Co., Ltd. Presentation on Financial Results for the Fiscal Year Ended March 31, 2025, and Medium-Term Business Plan 2025–2028 May 14, 2025 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results

  2. Slide 2: Summary of Today's Presentation

    Preamble Summary of Today’s Presentation  FYE March 2025: net sales ¥561.2 billion (+2.6% YoY), operating profit ¥29.7 billion (+¥1.8 billion YoY) ・4Q saw profits increase in a continuation of 3Q, driven by contribution of Global Business and more efficient use of sales promotion expenses, and lead

  3. Slide 3: Invest actively to reflect positioning as growth driver

    Following the announcement on April 15, 2025, of the recording of impairment losses, etc. on overseas subsidiaries ■Medium term: Propel business growth through active investments in probiotics and formula milk ■Long term: Explore next-generation growth drivers while working to rebuild structures in

  4. Slide 4: 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028

    1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results 3. Outlook of Financial Results for the Year Ending March 2026 Copyrig

  5. Slide 5: Medium-Term Business Plan 2022-2024 in Review (Management Indicators)

    Medium-Term Business Plan 2022-2024 in Review AA (Management Indicators) bh hen Hf Despite falling short of revised forecast, initial forecasts for net sales and operating profit were achieved, and overseas sales ratio target was also more or less accomplished Hf ROE improved due to sales of idle as

  6. Slide 6: Medium-Term Business Plan 2022-2024 in Review

    Medium-Term Business Plan 2022-2024 in Review tha morinaga RevieWessessment of figures vs. FYE Mar. 2022) Basic Policy 1 Expand five domains of wellness (Net sales increase of 1.3x) Achieving sustainable growth by increasing the added value of Expand the probiotics business (Despite 1.2x increase in

  7. Slide 7: Medium-Term Business Plan 2025-2028 - Basic Policies

    Medium-Term Business Plan 2025-2028 - Basic Policies tha morinaga Strengthening our defenses 1) Performing business with an ESG-focus 2) Further enhancing our eight main brands Accelerating development of bifidobacteria and proprietary seeds 3) Developing overseas business 4) Improving profitability

  8. Slide 8: Basic Policies (Points Prioritized during Formulation) - Merihari

    Medium-Term Business Plan 2025-2028 - Basic Policies Dba (Points Prioritized during Formulation) morinaga Merihar! To become a highly profitable company by creating products and brands that will serve as pillars of revenue Merihari is a Japanese word that means focus and prioritization. We use this

  9. Slide 9: Medium-Term Business Plan 2025-2028 - Management Indicators

    morinaga | Medium-Term Business Plan 2025-2028 - Management Indicators tha HB Aim to hit all numerical targets, using the plan as a period to put finishing touches to the 10-year Vision I Add new management indicators in the form of return on capital and pre-financial indicators that lead to future

  10. Slide 10: Growth Strategy (Positioning by Category/Clarification of Role)

    Sha morinaga Growth Strategy (Positioning by Category/Clarification of Role) @% strategy @ Revise management categories in accordance with role, based on the unchanging value we provide of “Health value/Tastiness and delightfulness” @ Free ourselves from an omnidirectional approach in Japan and over

  11. Slide 11: Investment Plans 2025-2028

    morinaga i In growth areas, create pillars of earnings by taking a proactive approach to investments, including R&D-related and M&A i Change the allocation of human resources across the company, including the R&D and sales departments (Investment (Cash-out basis) Plans for 2025-2028 » Business inves

  12. Slide 12: Growth Strategy (Quantitative Targets for Growth Areas)

    Growth Strategy (Quantitative Targets for Growth Areas) Sha morinaga Strategic Growth areas Core areas Fundamental areas } Transformation Nurturing areas areas -Beverages -Cheese 7 . ‘ -Milk “Chi Domestic Moet . Nutritional food products eat service and ches desserts +Health foods Business “Ice crea

  13. Slide 13: Growth Strategy (Yogurt)

    morinaga Growth Strategy (Yogurt) Ah lf To establish positions where we can aim for top share, concentrate resources on "Bifidus" and "PARTHENO" brands Hf While basing this around the distinctiveness of such brands, we will actively invest in launching and nurturing new products endowed with enhance

  14. Slide 14: Growth Strategy (Ice Cream)

    Growth Strategy (Ice Cream) Ma morinaga B Proactively invest in launching products with new value and strengthening supply capabilities with a view to winning top share in Japan lf Expand exports to ASEAN countries and establish positions in local markets in preparation for taking on the challenge o

  15. Slide 15: Growth Strategy (Probiotics)

    morinaga Growth Strategy (Probiotics) Ah Hf Aim to double sales, focus on promoting customers for formula milk and supplements in highly potential areas Hf Obtain evidence that further strengthens the competitive advantage of bifidobacteria, and invest actively in the development of new probiotics 1

  16. Slide 16: Growth Strategy (Formula Milk for Overseas Markets)

    | Growth Strategy (Formula Milk for Overseas Markets) Growth Sha strategy morinaga @ Expand product lineup in markets where we can leverage first-mover advantage, with the objective of entering global top10 Hf Roll out a variety of initiatives to enhance cost competitiveness and grow the Morinaga br

  17. Slide 17: Structural Reforms (Rebuild Organization for Product Development/Sales)

    Structu ral Reforms (Rebuild the Organization to Enhance Product Development/Sales Capabilities) Structural dhe reforms morinaga A Marketing Division and Functional Food Ingredients Division have been established as control towers for the business, improving efficiency and accelerating growth ll By

  18. Slide 18: Structural Reforms (Production Efficiency by Restructuring Production Systems)

    Structural Reforms (enhance Production Efficiency by Restructuring Production Systems) Structural morinaga reforms Hf Improve profitability by responding to market changes, such as focusing on growth areas, adapting to volume reductions, and shifting to long-life products at room temperature. Hf Alt

  19. Slide 19: Culture Reforms (Strengthen Initiatives to Improve Return on Capital)

    morinaga Culture Reforms (Strengthen Initiatives to Improve Return on Capital) dha i By introducing an ROIC target of 7% as a new management indicator, we will further raise awareness of the cost of capital ll We aim to enhance corporate value over the medium to long term through screening of invest

  20. Slide 20: Culture Reforms (Energetic Team with Professional Skills and Diversity)

    Culture Reforms (Build an Energetic Team with Professional Skills and Diversity) i Elevate employee engagement by developing specialist personnel, promoting the participation of women, and diversifying work styles i Forming the kind of teams to which we aspire will facilitate improvements in busines

  21. Slide 21: Allocation of Cash and Shareholder Returns Policies

    Allocation of Cash and Shareholder Returns Policies tha morinaga Bi Allocation of cash to achieve concentration of resources in growth areas Hf Use interest-bearing liabilities to optimize capital structure and enhance shareholder returns to reduce the cost of capital About ¥300.0 billion Concentrat

  22. Slide 22: Revision of Sustainability Medium- to Long-Term Plan

    Revision of Sustainability Medium- to Long-Term Plan Copyright©Morinaga Milk Industry Co.,Ltd.All Rights Reserved. 22

  23. Slide 23: Strengthened sustainability/governance structures and revised targets

    Three years have passed since plan was formulated. Strengthened governance structure, revised targets to reflect changes in internal/external environment 1) Strengthened sustainability/governance structures Philosophy-activity system diagram ・Changed positioning of current Sustainability Committee a

  24. Slide 24: 2. Overview of FYE March 2025 Financial Results

    2. Overview of FYE March 2025 Financial Results 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results 3. Outlook of Financial Results for the Year Ending March 2026 Copyright©Morinaga Milk Industry Co.,Ltd.All Right

  25. Slide 25: Financial Results for FYE March 2025: Summary

    Financial Results for FYE March 2025: Summary Higher net sales and operating profits: 4Q saw profits increase in continuation of 3Q, leading to profit growth for full year also  Operating profit: ¥29.7 billion (+¥1.8 billion YoY, +¥1.2 billion vs. target *¹) Three months of 4Q (Jan.–Mar.): ¥4.2 bil

  26. Slide 26: Financial Results for FYE March 2025

    Financial Results for FYE March 2025 (Unit: billion yen) FYE Mar. Year-on- Change Rate of FYE Mar. Year-on- FYE Mar. 2024 2025 FYE Mar. 2025 year Year on year from change 2025 4Q year Year on year target*¹ change target*¹ vs target*¹ (Jan.–Mar.) change Net sales 547.1 560.0 561.2 +14.1 +2.6% +1.2 +0

  27. Slide 27: Summary by Business Segment

    FYE March 2025 Financial Results: Summary by Business Segment 4Q：Contribution from Nutrition and Healthcare Foods Business, Global Business, drove increase in full-year operating profit Key points Operating profit: Full-year YoY Operating profit: 4Q (Jan.–Mar.) YoY 1. Nutrition and Healthcare Foods

  28. Slide 28: Factors Attributable to Increases and Decreases in Operating Profit

    Factors Attributable to Increases and Decreases in Operating Profit for FYE March 2025 Change in selling unit prices +9.2<+0.7> <>: difference with targets* Sales volume -0.9<-1.3> Product mix +2.4<-1.1> FYE March 2024 27.8 Business growth Operation cost ＋0.9<-1.0> Sales promotion expenses +0.7<+0.2

  29. Slide 29: 3. Outlook for the Year Ending March 2026

    3. Outlook of Financial Results for the Year Ending March 2026 1. Morinaga Milk Group Medium-Term Business Plan 2025–2028 (FYE March 2026–FYE March 2029) 2. Overview of FYE March 2025 Financial Results 3. Outlook of Financial Results for the Year Ending March 2026 Copyright©Morinaga Milk Industry Co

  30. Slide 30: Outlook of FYE March 2026: Summary

    Outlook of Financial Results for FYE March 2026: Summary Plan for increasing operating profit: expand growth areas, continue price revisions, hike profits in Global Business  Net sales: ¥580.0 billion (+3.4％ YoY) Operating Profit: ¥32.0 billion (+¥2.3 billion YoY)  In new MTBP, seeking profit incr

  31. Slide 31: Outlook of Financial Results for FYE March 2026

    Outlook of Financial Results for FYE March 2026 (Unit: billion yen) FYE Mar. FYE Mar. 2026 Year-on-year Year on year FYE Mar. FYE Mar. 2026 Year-on-year Year on year 2025 full-year target change 2025 1H 1H target change Net sales 561.2 580.0 +18.8 +3.4% 290.6 303.0 +12.4 +4.3% Operating profit 29.7

  32. Slide 32: Target Sales and Operating Profit for Each Category

    Outlook of Financial Results for FYE March 2026: Target Sales and Operating Profit for Each Category (Unit: billion yen) 1H target Full-year target 1H target Full-year target FYE Mar. 2026 Operating profit Year-on-year Operating profit Year-on- target Net sales Year on year Net sales Year on year (o

  33. Slide 33: Forecasts of Fluctuations to Operating Profit

    Outlook of Financial Results for FYE March 2026: Forecasts of Fluctuations to Operating Profit ( ) : 1H plan Change in selling unit prices +15.4(+7.9) Sales volume -1.0(-0.6) Product mix +5.1(+1.1) FYE March 2025 29.7 Business growth ＋19.5(+8.4) Milk -3.4(-1.2) Others -7.0(-4.9) Raw materials and en

  34. Slide 34: Outlook of FYE March 2026: Domestic Business

    Outlook of Financial Results for FYE March 2026: Domestic Business Domestic business: Revise prices and maintain/expand mainstay segments while expanding growth areas Domestic business  Price revisions Growth areas ・Raw material, energy, operational costs to continue to rise  Yogurt ・Milk price hi

  35. Slide 35: Outlook of FYE March 2026: Global Business

    Outlook of Financial Results for FYE March 2026: Global Business Global Business: Forecast profit increases centered on growth areas and MILEI, decreases in goodwill amortization Global Business  Operating profit: full-time profit target (+¥3.8 billion YoY) Growth areas ・Will expand growth areas of

  36. Slide 36: Outlook of FYE March 2026: Shareholder Returns

    Outlook of Financial Results for FYE March 2026: Shareholder Returns Raising dividend payout ratio target, will acquire treasury shares in the market for third consecutive year Medium-term Business Plan 2025–2028 shareholder return policy Annual dividend per share (yen) FYE FYE FYE FYE FYE FYE FYE •

  37. Slide 37: Appendix

    Appendix

  38. Slide 38: Management Indicators (by Segment)

    - Management Indicators (by Segment) Medium-Term Business Plan 2025-2028 Sha morinaga Net sales FYE Mar. 2025 Ea Increase (moun) Increase () compared to FYE Mar. 2025 FYE Mar. 2025 compared to FYE Mar. 2025 (Unit: billion yen) Operating profit Increase (emoun) Increase) compared to compared to FYE M

  39. Slide 39: Revision of Sustainability Plan: Health and Food Safety KPIs

    2 Buleq-|jem 0} UoNqUyuOD As of May 2022 (target for FYE Mar. 2031) KPls | Targets Net sales of products with consideration for eer 1.7-fold health issues (compared to FYE Mar. 2022) Participants in health promotion and nutrition Total ‘education activities (from FYE Mar.2022~Mar.2031) 1,000,000 Inc

  40. Slide 40: Revision of Sustainability Medium- to Long-Term Plan 2030

    Revision of Sustainability Medium- to Long-Term Plan 2030 y } As of May 2022 (target for FYE Mar. 2031) 4 Details of revision 7 As of May 2022 (target for FYE Mar. 2031) Details of revision ED hreresse tne number of inttves aimed at enhancing the value of dairy industry 500 ‘out community activities

  41. Slide 41: Three themes, seven material issues (Points of change)

    Three themes, seven material issues (Points of change) Food and Wellness Food and Well-being 1. Contribution to Wellness 1. Contribution to Well-being 2. Food Safety and Reliability 2. Food Safety and Reliability ◇ Based on course of action set out in Medium-term Business Plan 2025–2028, which incor

  42. Slide 42: Roadmap to Carbon Neutrality by 2050 (Scope 1 and 2)

    Formulated the Roadmap(Scope1 and Scope2) to Carbon Neutrality by 2050 base year Energy-saving activities, operational improvements (production efficiency optimization, CGS operation) Installation of energy-saving equipment (high-efficiency equipment, insulation technology, DX, electrification, spec

  43. Slide 43: FYE March 2025: Net Sales & Operating Profit by Business Segment

    (Reference) Financial Results for FYE March 2025: Net Sales & Operating Profit by Business Segment (Unit: billion yen) Operating profit Operating profit Net sales (operating profit to net sales) Net sales (operating profit to net sales) Rate of FYE Mar. FYE Mar. Year on FYE Mar. FYE Mar. Year-on- Ch

  44. Slide 44: FYE March 2025: Subsegment Net Sales

    (Reference) Financial Results for FYE March 2025: Subsegment Net Sales (Unit: billion yen) Rate of FYE Mar. FYE Mar. Year on FYE Mar. 2025 Year on change vs 2024 2025 year target*¹ 4Q (Jan.–Mar.) year Key points Nutrition and Healthcare Foods Business  Sales increase of “Bifidus.” Sales increase an

  45. Slide 45: FYE March 2025: Subsegment Net Sales (Global Business)

    (Reference) Financial Results for FYE March 2025: Subsegment Net Sales Rate of change FYE Mar. 2024 FYE Mar. 2025 Year on year vs target*¹ Key points Global Business  Decline in reaction to significant growth in revenue driven by impact of whey market conditions (1Q). Effects disappeared in 2Q, and

  46. Slide 46: Outlook of FYE March 2026: Subsegment Net Sales Targets

    (Reference) Outlook of Financial Results for FYE March 2026: Subsegment Net Sales Targets (Unit: billion yen) 1H target Full-year target FYE Mar. 2026 target Net sales Year on year Net sales Year on year Growth Segments Yogurt 31.0 +7% 61.1 +7% Ice cream 30.4 +6% 49.6 +7% (Global Business) NutriCo M

  47. Slide 47: Dairy Ingredient Market Data (Last 5 Years)

    (Reference) Dairy Ingredient Market Data (Last 5 Years) Zentrale Milchmarkt Berichterstattung GmbH (ZMB, Central Milk Market Fonterra Global Dairy Trade (GDT) auction Reporting Agency in Germany) Culinary-use whey powder price (€/ton) prices for lactose (US$/ton) 1,700 2,000 1,500 1,500 1,300 1,100

  48. Slide 48: Cautionary Note Regarding Business Forecasts

    Cautionary Note Regarding Business Forecasts Figures for plans, policies, and other figures included in this report other than actual past results are forecasts of future business performance, and are calculated based on management’s estimates and understanding of the information available to the Co

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