Meiji Holdings Co., Ltd. · TSE:2269

Meiji — H1 FY2023 Earnings Presentation

42 slides from Meiji's earnings presentation, Nov 9, 2023

1. Slide 1: Financial Results for the H1 of FYE March 2024 (FY2023)

   Financial Results for the H1 of FYE March 2024 (FY2023) (From April 1, 2023 to September 30, 2023) November 9, 2023 (Note) ・ A two-for-one common stock split was issued on April 1, 2023. EPS and cash dividends per share are calculated on the assumption that the stock split was conducted at the begin

2. Slide 2: Contents

   Contents 1. Financial Summary for the H1 of FY2023 2. Outlook for the H2 and Full-year of FY2023 Kazuo Kawamura CEO, President and Representative Director 3. Achieving Sustainable Growth in the Pharmaceutical Segment Daikichiro Kobayashi COO (Pharmaceutical Segment), Member of the Board and Executiv

3. Slide 3: 1. Financial Summary for the H1 of FY2023

   1. Financial Summary for the H1 of FY2023 2 © Meiji Holdings Co., Ltd. All rights reserved.

4. Slide 4: Summary for H1 FY2023 Consolidated Results

   Summary for H1 FY2023 Consolidated Results (JPY bn) FY2022 FY2023 FY2023 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +5.5% +0.4% Net sales 517.5 546.0 +28.5 +2.0 544.0 +12.1% -7.9% (Overseas sales) 56.7 63.6 +6.8 -5.4 69.0 +2.9% +38.9% Operating profit 43.1 44.4 +1.2 +12.4 32.0 Op. profit m

5. Slide 5: Food: Summary – H1 FY2023

   Food: Summary – H1 FY2023 （JPY bn） FY2022 FY2023 FY2023 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +5.9% +0.9% Net sales 420.6 445.4 +24.8 +4.0 441.4 +1.2% +14.6% Operating profit 29.3 29.6 +0.3 +3.7 25.9 Analysis of changes in operating profit H1 Results - FY2022 29.3 : Increased due to p

6. Slide 6: Pharmaceutical: Summary – H1 FY2023

   Pharmaceutical: Summary – H1 FY2023 （JPY bn） FY2022 FY2023 FY2023 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +3.8% -2.0% Net sales 97.1 100.8 +3.6 -2.0 102.9 +8.5% +117.8% Operating profit 14.6 15.9 +1.2 +8.6 7.3 Analysis of changes in operating profit H1 Results - FY2022 14.6 Due to incre

7. Slide 7: Position of FY2023: Period toward Next Medium-Term Business Plan

   Position of FY2023: Period toward Next Medium-Term Business Plan Our focal points  Strategies to offset cost increase  Penetrate price hikes  Continue marketing investment  Change strategies in core business  Recover sales growth and secure stable revenue by pursuing added value  Start busines

8. Slide 8: 2. Outlook for the H2 and Full-year of FY2023

   2. Outlook for the H2 and Full-year of FY2023 7 © Meiji Holdings Co., Ltd. All rights reserved.

9. Slide 9: Revised Outlook for H2 and Full-year of FY2023

   Revised Outlook for H2 and Full-year of FY2023 （JPY bn） FY2023 FY2023 FY2023 FY2023 FY2023 Full-year Full-year H1 Results YoY H2 Plan H2 Plan Change (Revised) YoY Change (Int. May) Plan YoY Change Plan (Revised) (Int. May) +5.5% +1.4% +3.4% Net sales 546.0 552.4 558.0 1,098.5 1,102.0 Consolidated +2

10. Slide 10: Food: Strategies to Overcome Cost Increase

    Food: Strategies to Overcome Cost Increase Effects on operating profit  Covered cost increase by increasing the price (JPY bn) 30.0  Price hikes have permeated due to the appeal of added value and Price hike sales volume is a recovery trend. 20.0 +30.4 +30.0 Price Hikes in FY2023 10.0 Mar. 2023 Ic

11. Slide 11: Food: Regain Sales of Core Business – Functional Yogurt

    Food: Regain Sales of Core Business – Yogurt and Cheese Business (Functional Yogurt)  Yogurt and Cheese  R-1 (JPY bn) FY2023 • Strengthen promotions to encourage customers to take care of FY2023 Full-year H1 Results YoY YoY their health. Successful in constraining volume reduction Plan Change (Rev

12. Slide 12: Food: Regain Sales of Core Business – Yogurt

    Food: Regain Sales of Core Business – Yogurt and Cheese Business (Yogurt)  Meiji Bulgaria Yogurt Sales of Yogurt (YoY) (excl. Functional Yogurt) • Recovering sales trends driven by plain yogurt with FY23-H2 new manufacturing method FY22-Q3 FY22-Q4 FY23-Q1 FY23-Q2 (E) 5% • H1: Promotional campaigns

13. Slide 13: Food: Grow Sales of Core Business – Chocolate and Gummy Business

    Food: Grow Sales of Core Business – Chocolate and Gummy Business  Chocolate and Gummy  Chocolate (JPY bn) FY2023 • Sales in convenience stores: Favorable FY2023 Full-year H1 Results YoY Plan YoY Due to recovery in consumer activity and increased Change (Revised) Change inbound demand +2.7% +2.2% •

14. Slide 14: Food: Grow Sales of Core Business – Nutrition Business

    Food: Grow Sales of Core Business – Nutrition Business  Sports Protein  Nutrition • Powdered Soy Protein: (JPY bn) FY2023 Recovered to be on par year on year FY2023 Full-year H1 Results YoY Plan YoY • SAVAS Milk Protein: Gained new customers Change (Revised) Change New products with increased prot

15. Slide 15: Food: Revitalize B to B business

    Food: Revitalize B to B business – Expand Sales Channels and Strengthen Innovation Capabilities Leveraging Meiji's unique technology, knowledge and brand to develop B to B business as a new growth driver Expand sales channels for existing products • Major CVS chains utilize our yogurt ingredients fo

16. Slide 16: Food: Accelerate to Grow Overseas Business – The U.S. and Europe

    Food: Accelerate to Grow Overseas Business – The U.S. and Europe  Overseas Business  The U.S. (JPY bn) FY2023 FY2023 Full-year • Implemented price hikes three times so far H1 Results YoY Plan YoY Change Change • Aiming for continued stable growth on the strength of (Revised) having both the high v

17. Slide 17: Food: Accelerate to Grow Overseas Business – China

    Food: Accelerate to Grow Overseas Business – China Focus on mid-to-high price range with continuing value-added strategy  Confectionery • Chocolate bar: Favorable Successful package changes Concentrated sales promotion and dissemination as core products Tianjin (Drinking milk and yogurt) • Launched

18. Slide 18: 3. Achieving Sustainable Growth in the Pharmaceutical Segment

    3. Achieving Sustainable Growth in the Pharmaceutical Segment 17 © Meiji Holdings Co., Ltd. All rights reserved.

19. Slide 19: Pharmaceutical: Promote Structural Reforms and Build Stable Revenue Platform

    Pharmaceutical: Promote Structural Reforms and Build Stable Revenue Platform Major Structural Reforms in the 2023 Medium-Term Business Plan  Improve profitability through a selection and concentration strategy Future Improve product • Strengthen vaccine business lineups to Revenue contribution imag

20. Slide 20: Pharmaceutical: Accelerate Growth Through New Drugs

    Pharmaceutical: Accelerate Growth Through New Drugs Improve product lineups based on unmet medical needs by leveraging strength areas ME3208 (Belumosudil) OP0595 (Nacubactam)  The only drug for the treatment of chronic graft-versus-host  New β-lactamase inhibitor against antimicrobial disease (chr

21. Slide 21: Pharmaceutical: Status of COVID-19 Vaccine Development in Japan

    Pharmaceutical: Status of COVID-19 Vaccine Development in Japan Enterprise and research institute Modality Status Aug. 2023 For booster vaccination for adults (against the original variant) Approved Daiichi Sankyo Co., Ltd. 1 mRNA vaccine Sep. 2023 For booster vaccination for over 12 years of age IM

22. Slide 22: Pharmaceutical: Meaning and Potential of Commercializing Two COVID-19 Vaccines

    Pharmaceutical: Meaning and Potential of Commercializing Two COVID-19 Vaccines  Develop multiple vaccines that can be safely administered to children and adults, and Provide new vaccine options in Japan  ARCT-154 will demonstrate the efficacy, safety, and tolerability of the new self- amplifying m

23. Slide 23: Appendices

    Appendices 22 © Meiji Holdings Co., Ltd. All rights reserved.

24. Slide 24: Consolidated Financial Results – H1 FY2023

    Consolidated Financial Results – H1 FY2023 (JPY bn) FY2023 H1 Results YoY Change Main factors for the change +5.5% Net sales 546.0 +28.5 ― Details on p 3-5 +2.9% Operating profit 44.4 +1.2 ― Details on p 3-5 -22.9% - Share of profit of entities accounted for using equity method (-0.6) Non-operating

25. Slide 25: Financial Position as of September 2023

    Financial Position as of September 2023 (JPY bn) Results as of Sep. 2023 Change Main Factors for Change +14.3% - Notes and accounts receivable-trade (+41.4) Current assets 538.0 +67.1 - Cash and deposits (+18.5) +0.7% - Land (+8.1) - Investment securities (+6.2) Non-current assets 669.7 +4.4 - Const

26. Slide 26: Consolidated Cash Flows for H1 FY2023

    Consolidated Cash Flows for H1 FY2023 (JPY bn) FY2023 H1 Results YoY Change Main Factors for Change - Change in inventories (+11.4) - Change in trade payables (+9.0) Cash flows from operating 25.8 +0.7 - Income taxes paid (+6.4) activities - Change in trade receivables (-22.7) - Loss (gain) on sale

27. Slide 27: Analysis of Operating Profit – H1 FY2023

    Analysis of Operating Profit – H1 FY2023 （JPY bn） Consolidated Operating Profit Food Pharma Other H1 Results - FY2022 43.1 29.3 14.6 -0.7 Due to increased/decreased *1 +19.7 +19.9 -0.2 ― sales Impact of drug price revision -1.6 ― -1.6 ― *2 Changes in costs of goods sold -18.0 -17.2 -0.8 ― Changes in

28. Slide 28: Analysis of Consolidated Operating Profit – FY2023

    Analysis of Consolidated Operating Profit – FY2023 （JPY bn） Consolidated Operating Profit Food Pharma Other Full-year Results - FY2022 75.4 55.8 21.7 -2.1 Due to increased/decreased *1 +42.2 +41.5 +0.6 ― sales Impact of drug price revision -3.4 ― -3.4 ― *2 Changes in costs of goods sold -32.4 -31.1

29. Slide 29: Outlook for FY2023

    Outlook for FY2023 (JPY bn) FY2022 FY2023 FY2023 Full-year Full-year Plan Full-year Plan YoY Change （Revised） YoY Change YoY Change Results (Int. May) +4.8% +3.4% +3.8% Net sales 1,062.1 +49.0 1,098.5 +36.3 1,102.0 +39.8 -18.8% +6.1% +3.4% Operating profit 75.4 -17.4 80.0 +4.6 78.0 +2.5 Op. profit m

30. Slide 30: Food: Net sales and Op. Profit by Business

    Food: Net sales and Op. Profit by Business (JPY bn) FY2022 FY2023 FY2023 FY2023 Full-year H2 Plan Full-year Plan H1 Results YoY Change YoY Change YoY Change Results (Revised) (Revised) +2.2% +0.0% +1.1% Net sales 202.5 102.5 +2.1 102.1 +0.0 204.7 +2.1 Yogurt & cheese +4.8% +10.4% +7.6% Op. profit 24

31. Slide 31: Food: Net sales and Op. Profit by Business

    Food: Net sales and Op. Profit by Business (JPY bn) FY2022 FY2023 FY2023 FY2023 Full-year H2 Plan Full-year Plan H1 Results YoY Change YoY Change YoY Change Results (Revised) (Revised) +5.1% +3.9% +4.6% Net sales 57.9 33.8 +1.6 26.7 +1.0 60.6 +2.6 Frozen dessert& ready meal +6.0% +90.1% +19.1% Op. p

32. Slide 32: Food: Analysis of Operating Profit by Business – H1 FY2023

    Food: Analysis of Operating Profit by Business – H1 FY2023 (JPY bn) Frozen Other/ Segment Yogurt ＆ Chocolate & Nutrition Drinking milk B to B dessert & Overseas domestic Total Cheese gummy ready meal subsidiaries H1 Operating Profit – FY2022 29.3 12.0 8.6 3.2 -0.8 1.0 2.7 0.0 2.3 Due to increased/de

33. Slide 33: Food: Analysis of Operating Profit by Business – FY2023 (Revised Plan)

    Food: Analysis of Operating Profit by Business – FY2023 (Revised Plan) (JPY bn) Frozen Other/ Food Segment Yogurt ＆ Chocolate & Nutrition Drinking milk B to B dessert & Overseas domestic Total cheese gummy subsidiaries ready meal Operating Profit – FY2022 Results 55.8 24.1 14.6 11.1 -2.5 3.0 3.2 -0.

34. Slide 34: Food: Sales by Main Product for FY2023

    Food: Sales by Main Product for FY2023 (JPY bn) FY2023 FY2022 FY2023 FY2023 Full-year Full-year H2 Plan H1 Results YoY Change YoY Change Plan YoY Change Results (Revised) (Revised) Yogurt 76.1 39.6 -0.7% 36.5 +0.8% 76.1 +0.0% Functional yogurt 95.4 46.7 +3.4% 50.6 +0.8% 97.3 +2.0% Cheese 28.2 14.0 +

35. Slide 35: Market Prices of Main Raw Materials Imported

    Market Prices of Main Raw Materials Imported (USD/MT) (USD/MT) Nonfat Dry Milk Cheese 4,000 6,000 5,000 3,000 4,000 2,000 3,000 2,000 1,000 1,000 0 0 (GBP/MT) (USD/lb) Cocoa Sugar 4,000 30 3,500 25 3,000 20 2,500 2,000 15 1,500 10 1,000 5 500 0 0 34 © Meiji Holdings Co., Ltd. All rights reserved. So

36. Slide 36: Pharmaceutical: Net sales and Op. Profit by Business

    Pharmaceutical: Net sales and Op. Profit by Business (JPY bn) FY2022 FY2023 FY2023 FY2023 Full-year H2 Plan Full-year Plan H1 Results YoY Change YoY Change YoY Change Results (Revised) (Revised) +5.8% +2.6% +4.1% Net sales 100.1 50.3 +2.7 54.0 +1.3 104.3 +4.1 Domestic ethical pharmaceuticals -3.9% -

37. Slide 37: Pharmaceutical: Analysis of Operating Profit – H1 FY2023

    Pharmaceutical: Analysis of Operating Profit – H1 FY2023 (JPY bn) Domestic ethical Overseas ethical Segment Total Human Vaccine Veterinary drug pharmaceuticals pharmaceuticals H1 Operating Profit – FY2022 14.6 5.4 3.6 4.8 0.7 Due to increased/decreased sales -0.2 -0.5 +0.4 -0.2 ― Impact of drug pric

38. Slide 38: Pharmaceutical: Analysis of Operating Profit – FY2023 (Revised Plan)

    Pharmaceutical: Analysis of Operating Profit – FY2023 (Revised Plan) (JPY bn) Domestic ethical Overseas ethical Segment Total Human Vaccine Veterinary drug pharmaceuticals pharmaceuticals Operating Profit – FY2022 Results 21.7 10.1 7.7 2.4 1.4 Due to increased/decreased sales +0.6 -0.9 +0.3 +1.3 ― I

39. Slide 39: Pharmaceutical: R&D Pipeline – Infectious disease and New fields

    Pharmaceutical: R&D Pipeline - 1 Code No. Efficacy Classification Target Disease Stage (Generic Name) Infectious disease Infections caused by carbapenem-resistant OP0595* (Nacubactam) β-lactamase inhibitor Phase III (Japan, Overseas)** bacteria ME3208 (Belumosudil) ROCK2 inhibitor Chronic Graft Vers

40. Slide 40: Pharmaceutical: R&D Pipeline – Vaccine

    Pharmaceutical: R&D Pipeline - 2 Code No. Efficacy Classification Target Disease Stage (Generic Name) Pentavalent vaccine against diphtheria, KD-370 Vaccine tetanus, pertussis, poliovirus, and Approved (Japan) haemophilus influenza type b Self-amplifying mRNA vaccine against ARCT-154 Vaccine Filed (

41. Slide 41: Pharmaceutical: R&D Pipeline – Veterinary Drugs

    Pharmaceutical: R&D Pipeline - 3 Code No. Efficacy Classification Stage ME4137 Injectable antibacterial drug for cattle Filed (Japan) ME4137 Injectable antibacterial drug for swine Filed (Japan) KD-412* Vaccine for cattle Filed (Japan) Veterinary Drugs MD-22-3002 Anti-inflammatory drug for cattle, s

42. Slide 42: Information in this material is not intended to solicit sale or purchase of shares

     Information in this material is not intended to solicit sale or purchase of shares in Meiji Holdings. The final decision relating to investments should be made based on the judgment of users themselves.  Business forecasts and other forward-looking statements are based on information available at

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