Meiji Holdings Co., Ltd. · TSE:2269
Meiji — FY2011 Earnings Presentation
38 slides from Meiji's earnings presentation, May 21, 2012
Slide 1: Financial Results for FY2011 and FY2012-2014 Medium-Term Business Plan
Financial Results for FY2011 and FY2012-2014 Medium-Term Business Plan May 21, 2012
Slide 2: Contents
Contents 1. - Outline of FY2011 Financial Results - Overview of Meiji Group FY2009-2011 Medium-Term Business Plan 2. - Overview of Meiji Group 2020 Vision - Outline of Meiji Group FY2012-2014 Medium-Term Business Plan 3. - Outlook for FY2012 2 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All
Slide 3: Outline of FY2011 Financial Results and FY2009-2011 Plan Overview
1. - Outline of FY2011 Financial Results - Overview of FY2009-2011 Medium-Term Business Plan 3 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
Slide 4: FY2011: Outline of Financial Results
FY2011: Outline of Financial Results (billions of yen) FY2010 FY2011 Plan YoY Change vs. Results (announced on Results Feb. 13 ) change plan Meiji HD Net sales 1,111.0 1,105.0 1,109.2 -0.2% +0.4% [Consolidated] Operating income 29.9 18.0 20.1 -32.6% +12.2% Ordinary income 30.4 19.0 21.8 -28.1% +15.2
Slide 5: FY2011: Analysis of Operating Income
FY2011: Outline of Financial Results – Analysis of Operating Income (billions of yen) Food - Decrease in income due to decreased 29.9 sales: -1.6 - Worsening of the product mix: -3.5 -2.6 Pharmaceuticals - Increase in income due to increased -2.8 sales: +2.6 -0.8 Food: -0.8 Increase in prices
Slide 6: Overview of Meiji Group FY2009-2011 Medium-Term Business Plan
Overview of Meiji Group FY2009-2011 Medium-Term Business Plan 1,600 80 Objectives for FY2011 ( Net sales: billions of yen) ( Op. income: billions of yen) Announcement of the“2020 vision” 1,400 70 Growth of existing (Initial Targets) businesses Net Sales ¥1,260 bn Management integration Group reorgan
Slide 7: Meiji Group 2020 Vision and FY2012-2014 Medium-Term Plan
2. - Overview of Meiji Group 2020 Vision - Outline of Meiji Group FY2012-2014 Medium-Term Business Plan 7 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
Slide 8: Management Philosophy
Management Philosophy MeijiGroup Meiji GroupPhilosophy Philosophy Our mission is to widen the world of “Tastiness and Enjoyment” and meet all expectations regarding “Health and Reassurance.” Our wish is to be closely in tune with our customers’ feelings and to always be there to brighten their daily
Slide 9: Meiji Group 2020 Vision
Meiji Group 2020 Vision The Meiji Group of the Future The Meiji Group aims to become a corporate group that brightens customers' daily lives by providing customers of all ages, from infants to the elderly, with foods that offer tastiness and enjoyment, as well as products that contribute to customer
Slide 10: Positioning in the 2020 Vision
: Positioning in the “2020 Vision” FY2009-2011 FY2015-2017 FY2018 -2020 Medium-Term Business Medium-Term Business Medium-Term Business Plan Plan Plan • Growth of existing Progress Toward businesses Strategic investments Acceleration of Growth Becoming a Global • Pursuit of integration to improve pro
Slide 11: FY2012-2014 Medium-Term Business Plan
FY2012-2014 Medium-Term Business Plan It was given this name because it is our first Medium-Term Business Plan since our management integration, and through our Group reorganization, we will make steady efforts to realize our 2020 Vision. Basic policy Current Trends in the Business Environment Gro
Slide 12: Plan Targets FY2010-FY2014
(Change vs. FYE 2012/3) FY2010 FY2011 FY2012 FY2014 Amounts Rate Meiji HD Net sales ¥1,111.0 bn ¥1,109.2 bn ¥1,125.0 bn ¥1,190.0 bn +¥80.7 bn +7.3% [Consolidated] Op. income ¥29.9 bn ¥20.1 bn ¥24.0 bn ¥40.0 bn +¥19.8 bn +98.1% (Op. income ratio) (2.7%) (1.8%) (2.1%) (3.4%) +1.6pts ROE 3.3% 2.3% 4% 7
Slide 13: Plan by Segment
: Plan by Segment (billions of yen) (Change vs. FYE 2012/3) FY2011 FY2012 FY2014 Amounts Rate Food Net sales 986.3 1,000.0 1,050.0 +63.6 +6.5% Op. income 11.4 18.4 30.0 +18.5 +161.1% Net sales 589.7 595.3 627.9 +38.2 +6.5% Dairy Op. income 10.0 12.4 17.1 +7.1 +71.5% Net sales 293.5 297.4 311.5 +18.0
Slide 14: Food Segment – Strategy Key Points
Food Segment – Strategy Key Points 14 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
Slide 15: Food – Strategy Key Points
Food - Strategy Key Points Basic Policies Strategy Key Points • Dairy: Establish overwhelming dominance in the area of yogurt and probiotics 1. Strengthen and Expand Existing • Confectionery: Enhance product appeal and stimulate market demand, focusing on chocolate Businesses (Growth and Priority •
Slide 16: Establish Dominance in Yogurt and Probiotics
Basic Policy 1: Strengthen and Expand Existing Businesses Food Establish an overwhelming dominance in the area of yogurt and probiotics Dairy business Share of Yogurt Market: 40% Target: Net Sales of Probiotics FY2011: ¥37 billion FY2014: 30% increase Joy & Fun • In addition to “LG21,” add “R-1” as
Slide 17: Enhance Product Appeal, Focusing on Chocolate
Basic Policy 1: Strengthen and Expand Existing Businesses Food Enhance Product Appeal and Stimulate Market, Focusing on Chocolate Confectionery business Combine the technologies Share of Chocolate Market: 30% for chocolate and ice cream Enhance chocolate snacks Introduce the chocolate brand into
Slide 18: New Investment in the Enteral Formula Sector
Basic Policy 1: Strengthen and Expand Existing Businesses Food New Investment in the Enteral Formula Sector, Which is Growing Remarkably Healthcare and nutritionals business Market size and our sales of enteral formula ( Market size: billions of yen) ( Sales: billions of yen) Target: Net Sales of en
Slide 19: Build Healthy Bodies – Food Products for Active Seniors
Basic Policy 2: Foster Growth Businesses Food “Build healthy bodies” – Develop food products for active seniors Infants and Children Adults Active seniors Supplements Enhancing the marketability by utilization of our advantages; Cassis Beauty supplements (Collagen + amino acid and other materials) 1
Slide 20: Spread Enjoyment – Strengthen Desserts Category
Basic Policy 2: Foster Growth Businesses Food “Spread enjoyment” – Foster and strengthen our desserts category Strengthen “Essel” brand and establish a market Integrating the strengths of the confectionery and presence for new brands, to expand our ice dairy businesses cream lineup Brand Planning/
Slide 21: Overseas Business – Foster Businesses and Reach Profitability
Basic Policy 2: Foster Growth Businesses Food Overseas Business – Foster businesses with a sense of urgency, and quickly reach profitability Place emphasis on 3 major markets: China, Asia, and the USA. Work for deeper penetration of the brand, and foster solid business expansion China The U.S.A. Asi
Slide 22: Overseas Business – Initiatives in China
Basic Policy 2: Foster Growth Businesses Food Overseas Business – Initiatives in China Dairy Launched a fresh dairy business in Suzhou Confectionery Undertake business structure reforms, to achieve profitability Healthcare and Expand promotional activities and strengthen distribution abilities
Slide 23: Basic Policy 3: Improve Profitability
Food Basic Policy 3: Improve Profitability Diagram Showing Increase in Op. Income Dairy Business - Revise sales promotion expenses and (billions of yen) 3: Polices for improving revamp unprofitable product groups profitability FY2014 - Speed up reform of our sales subsidiaries ¥30.0 bn Confectio
Slide 24: Pharmaceuticals Segment – Strategy Key Points
Pharmaceuticals Segment – Strategy Key Points 24 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
Slide 25: Pharma – Strategy Key Points
Pharma - Strategy Key Points Basic Policies Strategy Key Points • Strengthen fields where Meiji has an advantage as a “Speciality and Generic 1. Strengthen and Pharmaceuticals Company” Expand Existing - In the fields of infectious diseases and central nervous system (CNS) disorders, establish a more
Slide 26: Strengthen Fields of Advantage as Specialty and Generic Pharma
Basic Policy 1. Strengthen & expand existing businesses/3. Improve Profitability Pharma Strengthen fields in which Meiji has an advantage as a “Speciality and Generic Pharmaceuticals Company” FY2011 FY2014 Net sales ¥125.2 bn FY2012 FY2014 ¥140.0 bn Drug price Drug price Op. income ¥8.1 bn Revisions
Slide 27: Strengthen Sales Capabilities
Basic Policy 1. Strengthen & expand existing businesses/3. Improve Profitability Pharma Strengthen Sales Capabilities Number of MRs Strengthen Medical Representatives (MRs) 1,000 MRs specialized in CNS disorders 900 Maintain a network of 900 MRs (200 of whom are specialized in CNS disorders) 800 7
Slide 28: Development of the Pipeline
Basic Policy 2. Foster Growth Businesses Pharma Development of the Pipeline FY2012 FY2013 FY2014 MEIACT Expanded indication of high dose for children Apply Infectious diseases ME107Metallo-beta-lactamase inhibitor (Used with antibacterial drugs) ME2080 (Stiripentol) - Biocodex SA (France) Apply [Ant
Slide 29: Expansion of Overseas Sales, Focusing on Emerging Markets
Basic Policy 2. Foster Growth Businesses Pharma Expansion of Overseas Sales, Focusing on Emerging Markets Enhance Enhance the the life life cycle cycle [Russia] [Russia] management management of of MEIACT MEIACT Form Form aa partnership partnership with with aa sales sales company company toto estab
Slide 30: Expansion of Agricultural Chemicals and Veterinary Drugs Business
Basic Policy 2. Foster Growth Businesses/3. Improve Profitability Pharma Expansion of Agricultural Chemicals and Veterinary Drugs Business FY2012 FY2013 FY2014 Agricultural chemicals AF-02 “TRY” fungicide Launch Register ME5343 Insecticide <<Japan>> <<Overseas>> Apply in Japan Apply Register oversea
Slide 31: Financial Strategies
Financial Strategies 31 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
Slide 32: Financial Strategies
Financial Strategies (billions of yen) FY2009-2011 Medium-Term Business Plan FY2012 to FY2014 FY2009 FY2010 FY2011 Total Capital 30.5 38.5 35.9 104.9 161.7 expenditures Total depreciation 37.6 39.0 37.9 114.5 126.5 Free cash flows 14.0 25.5 -13.7 25.9 15.3 (Operating cash flow portion) 47.7 57.9 30.
Slide 33: Toward an Improved ROE
Toward an improved ROE FY2010 FY2011 FY2014 3.3 2.3 (Net income) ¥9.5 bn ¥6.8 bn Approx. ¥24.0 bn Improve Achieve further growth of existing businesses profitability Solidly implement policies to improve earnings in each business Maximize net income Increase asset Raise production efficiency a
Slide 34: Outlook for FY2012
3. Outlook for FY2012 34 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
Slide 35: Outlook for FY2012
Outlook for FY2012 (billions of yen) FY2011 FY2012 Results Plan YoY change Meiji HD Net sales 1,109.2 1,125.0 +1.4% [Consolidated] Operating income 20.1 24.0 +18.9% Ordinary income 21.8 24.0 +9.7% Net income 6.8 11.8 +73.4% Food Net sales 986.3 1,000.0 +1.4 Operating income 11.4 18.4 +60.1% Pharma-
Slide 36: FY2012: Business Plan by Segment – Key Points
FY2012: Business Plan by Segment – Key Points Food Segment: Recovery of profitability Dairy: • Continually strengthen mainstay brands (“Oishii Gyunyu,” “Bulgaria,” “LG21”) • Establish markets and expand market shares for new products such as “R-1” Confectionery: • Strengthen long-seller brands,
Slide 37: Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
37 2012.05.21 Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.
Slide 38: Forward-looking statements
The forward-looking statements described in this material, such as business forecasts, are based on information available at the time of the release of this presentation and reasonable assumptions made by the Company. Actual results could differ materially from forecasts due to various factors.