Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — FY3/2024 2Q Earnings Presentation
42 slides from Nissin Foods's earnings presentation, Nov 9, 2023
Slide 1: Financial Results for FY 3/2024 2Q
Financial Results for FY 3/2024 2Q November 9, 2023 NISSIN FOODS HOLDINGS CO., LTD. (TSE Stock Code: 2897) Financial Results Presentation: November 10, 2023
Slide 2: Agenda
I. FY 3/2024 2Q Financial Results and FY 3/2024 Revised Forecasts ……… P2~ Takashi Yano, Executive Officer and CFO II. Progress of Mid-to Long-Term Growth Strategy ……… P11~ Koki Ando, Representative Director, President and CEO Noritaka Ando, Executive Vice President, & Representative Director, COO an
Slide 3: Today's Points
Today’s Points • Point 1: FY 3/2024 2Q Financial Results ➢ Revenue and core operating profit of existing businesses increased by 10.5% and 68.1% year-on-year, respectively. ➢ Overseas Business: U.S. drove the overall. Continued the trend of profitability improvement despite lower sales volume. ➢ Dom
Slide 4: FY 3/2024 2Q Financial Results
FY 3/2024 2Q Financial Results 3
Slide 5: FY 3/2024 2Q Consolidated Financial Summary
FY 3/2024 2Q Consolidated Financial Summary Institutional accounting basis Constant currency basis Bil. yen YoY change YoY change FY 3/2024 FY 3/2024 2Q 2Q Amount Ratio Amount Ratio Revenue 350.4 + 33.4 + 10.5% 342.5 + 25.5 + 8.1% Core operating profit 47.6 + 19.3 + 68.1% 46.3 + 17.9 + 63.4% of exis
Slide 6: Analysis of Core OP of Existing Businesses
Analysis of Core OP of Existing Businesses Domestic and Overseas : +) Price revisions etc. (Bil.Yen) Domestic (8.7), Overseas +0.5 Domestic：- ) Increase in raw materials and energy costs, etc. +25.7 YoY +19.3 Bil. yen Overseas +1.3 +4.5 +68% +10.2 (0.8) (8.2) (3.2) Domestic +15.4 Mareven +2.2 Premie
Slide 7: Financial Summary by Segment
Financial Summary by Segment Revenue and profit of all three businesses increased. Profit from Domestic instant noodles business turned into increase due to steady demand even after price revisions. Overseas business drove overall profit growth. Non- instant noodles business performed well due to st
Slide 8: Revenue Results by Segment
Revenue Results by Segment Consolidated revenue saw Double-Digit growth partly due to price revisions. Institutional accounting basis Constant currency basis Bil. yen FY 3/2024 YoY change FY 3/2024 YoY change 2Q Amount Ratio 2Q Amount Ratio NISSIN FOOD PRODUCTS 107.8 + 5.9 + 5.8% 107.8 + 5.9 + 5.8%
Slide 9: Core OP Results by Segment
Core OP Results by Segment Overseas business, NISSIN YORK, and KOIKE-YA continued leading the overall growth, resulting in 1.7 times increase year-on-year. FY 3/2024 2Q Institutional accounting basis FY 3/2024 2Q Constant currency basis Bil. yen Other Income YoY change YoY change OP and Expenses Cor
Slide 10: FY 3/2024 Revised Consolidated Forecasts
FY 3/2024 Revised Consolidated Forecasts FY 3/2024 Forecasts (revised) announced on 9th November, 2023 Bil. yen FY3/2024 vs. Initial forecasts vs. FY3/2023 Forecasts (revised) Amount Ratio Amount Ratio Revenue 720.0 + 10.0 + 1.4% + 50.8 + 7.6% Core operating profit of existing businesses 80.0 + 16.0
Slide 11: FY 3/2024 Revised Consolidated Forecasts by Three Businesses
FY 3/2024 Revised Consolidated Forecasts by Three Businesses FY 3/2024 Forecasts (revised) announced on 9th November, 2023 Bil. Yen FY3/2024 vs. Initial forecasts vs. FY3/2023 Forecasts (revised) Amount Ratio Amount Ratio Revenue 720.0 + 10.0 + 1.4% + 50.8 + 7.6% Domestic Instant Noodles Business 27
Slide 12: Progress of Mid- to Long-Term Growth Strategy
Progress of Mid- to Long-Term Growth Strategy 11
Slide 13: FY 3/2024 First Half Review and Future Prospects
FY 3/2024 First Half Review and Future Prospects (1) Pursue Further Upside ➢ A resilient business structure adaptable to change in the environment contributed to an increase in profits across all three businesses. ➢ We met the target profit level defined in our Mid- to Long-Term Growth Strategy unde
Slide 14: FY 3/2024 Revised Forecasts - Core Operating Profit by Business Segment
(1) Pursue further upside FY 3/2024 Revised Forecasts- Core Operating Profit by Business Segment (%) Changes in Core Operating Profit Recent Performance and Direction for the Second Half (Bil. Yen) Operating profit, core operating profit margin 40.0 MYOJO FOODS ✓ Return from price-conscious products
Slide 15: NISSIN FOODS U.S.A. New Greenville Plant
(2) Capital Expenditures NISSIN FOODS U.S.A. New Greenville Plant ⚫ Scheduled to begin operation in August 2025 to meet active demand in the instant noodles market ⚫ Aiming to improve production and delivery efficiency through collaboration with the Gardena Plant (LA) and Lancaster Plant (Pennsylvan
Slide 16: EARTH FOOD CHALLENGE 2030 Progress
(3) Earth Food Challenge 2030 (EFC2030) Initiatives EARTH FOOD CHALLENGE 2030 Progress The CO2 reduction goals for 2030 (SCOPE1+2,3) has been revised upwards considering the 1.5°C target in May 2023. Initiatives for effectively utilizing finite resources such as water usage are generally in line wit
Slide 17: TNFD - Trial Implementation of Nature-Related Risk and Opportunity Assessments
(3) Earth Food Challenge 2030 (EFC2030) Initiatives TNFD -Trial Implementation of Nature-Related Risk and Opportunity Assessments- Referencing the LEAP approach of the TNFD*1, we focused on raw materials procurement, which has a particularly high dependence on nature in our value chain. We assessed
Slide 18: Domestic Nissin Foods and New Businesses
Domestic Nissin Foods and New Businesses 17
Slide 19: Domestic Instant Noodles Business
Domestic Instant Noodles Business Instant noodles with excellent value for money support household budgets [Food price range] September, 2021 September, 2023 Real Wage (YoY) 3 (％) 700 yen 651 yen + 48 yen Ramen 603 yen 2 617 yen + 52 yen 1 Downtrend continues Box lunch 565 yen 505 yen + 61 yen 500 y
Slide 20: Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS)
Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS) Enhanced Product Lineup and Effective Marketing Ensured Positive Year-on-Year Performance in Shipment Value, Even After Price Revisions Price revisions 6/2022-: 5%-12% up +15% 6/2023-: 10%-13% up 2022 2023 +11% +10% +10% +10% +8% +8% Shipment
Slide 21: Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS)
Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS) Leverage Entertainment and Data-Driven Solutions, Focusing on Core Products CUP NOODLE DONBEI U.F.O. CHICKEN RAMEN Aiming for highest sales Aiming for highest sales Aiming for highest sales Aiming for high-single- for 7 consecutive years for 9
Slide 22: Total Series Servings Exceed 15 Million!
KANZEN MEAL: Lineup for the First Half Total Series Servings Exceed 15 Million! * Enhanced the category further with the launch of three new products on September 4, 2023! Cup-type instant Cup-type Cup-type Unchilled Drinks Granola noodles instant rice instant soup Pursue a balance of 33 Nutrients s
Slide 23: Growing! The Circle of KANZEN
KANZEN MEAL Brand Awareness Via Touch Points Across Numerous Channels! Health Management Promotion BtoBtoC Category Business According to Base Ingredient Company Cafeteria Business: Expanding Food Categories Through Collaborations With Expanding Meal Services and Installations Other Companies Cafete
Slide 24: Joined the Optimized Nutri-Dense Meals Association
Joined the Optimized Nutri-Dense Meals Association to promote the healthy development and spread of the category Optimized Nutri-Dense Meals Association - An association whose purpose is to promote Optimized Nutri-Dense Meals, in which key nutrients are properly balanced and adjusted, and to contrib
Slide 25: Toward Becoming a 10 Bil. Yen Brand in FY3/25
KANZEN MEAL: Toward Becoming a 10 Bil. Yen Brand Toward Becoming a 10 Bil. Yen Brand in FY3/25 FY 3/25 Toward a 10.0 Bil. Yen FY 3/24 Brand 6.0 Bil. yen (Market Sales Price Conversion) FY 3/23 Target 3.0 Bil. yen Reached 24
Slide 26: Status of Our Businesses
Status of Our Businesses 25
Slide 27: Domestic Instant Noodles Business
Domestic Instant Noodles Business Revenue and profit increased due to price revisions besides expanding sales of main products despite rising raw materials costs. Revenue (Bil. Yen) FY 3/2023 FY 3/2024 NISSIN300.0 FOOD PRODUCTS (+6%) 250.0 Cup type : New Products such as CUP NOODLE TANTAN and TOKUJY
Slide 28: Domestic Non-Instant Noodles Business
Domestic Non-Instant Noodles Business Revenue and profit increased due to contributions from YORK, with keeping strong performance of lactobacillus beverages such as PILKUL MIRACLE CARE and PILKUL 400, and KOIKE-YA, with strong sales from main products Revenue (Bil. Yen) 250.0 FY 3/2023 FY 3/2024 Ch
Slide 29: Non-Instant Noodles Businesses
Non-Instant Noodles Businesses NISSIN YORK KOIKE-YA In addition to strong sales of existing products, PILKUL MIRACLE CARE, Despite soaring raw material prices, we posted record highs for revenue and launched in September 2022, performed well core operating profit due to increased sales volume for co
Slide 30: The Americas
The Americas Revenue and profit increased due to the strengthening of propositions and promotion of high-value-added products for the whole Americas as well as the impact of price revisions Revenue (Bil. Yen) FY 3/2023 FY 3/2024 U.S. 160.0: Increased due to strengthening of sales of value-added prod
Slide 31: The Americas (NISSIN FOODS U.S.A.)
The Americas (NISSIN FOODS U.S.A.) Recovering despite lower volume year on year. Promote aggressive marketing and sales measures to reach the last year performance levels. ◼ Revenue (U.S.) U.S. *Local currency basis YoY ➢ Expanding premium products and developing markets for high-value-added product
Slide 32: The Americas (Brazil, Mexico)
The Americas (Brazil, Mexico) Brazil: Production system stabilized in 2Q. Aiming to capture strong demand and restore sales to previous-year levels. Mexico: Ongoing strong sales through continuance of aggressive sales activities launched in the previous year to cultivate new customers. ◼ Revenue (Br
Slide 33: China (incl. H.K.)
China (incl. H.K.) Core operating profits increased due to lower raw material costs and recovering sales volume of instant noodles from July to September Revenue (Bil. Yen) FY 3/2023 FY 3/2024 80.0 Hong Kong : Decreased due to lower sales volume of bag type noodls 70.0 (Forex impact +0.6 Bil. yen) 6
Slide 34: China (incl. H.K.)
China (incl. H.K.) ◼ Revenue (FY 12/2023）Jan.-Sep. Hong Kong （HK$M） ➢ Instant Noodles Business : Recovery trend of cup-type noodles Launched high-value-added products Mainland China ➢ Non-Instant Noodles Business Expanded profit opportunities by multi-categorization Initiatives for the Second Half F
Slide 35: Asia
Asia Profit Increased in all regions due to price revisions in each country and lower material costs Revenue (Bil. Yen) 25.0 FY 3/2023 FY 3/2024 20.0 By descending order of revenue 15.0 Thailand ：Increased (Forex impact +0.2 Bil. yen) 10.0 India ：Increased (Forex impact - ) 5.0 Singapore ：Increased
Slide 36: EMEA
EMEA Revenue rose approximately 1.5 times year-on-year in the fast-growing instant noodles market Revenue (Bil. Yen) FY 3/2023 FY 3/2024 25.0 20.0 15.0 • CUP NOODLES, Soba and Demae Ramen brands continued to perform well 10.0 • Increased mainly in the U.K., Germany, and France 5.0 (Forex impact +1.1
Slide 37: Appendix
Appendix 36
Slide 38: Revenue and Volume in the Americas and Overseas (YoY)
Revenue and Volume in the Americas and Overseas (YoY) FY 3/2023 FY 3/2024 4-６月 Jul. - Sep. 7-9月 Oct. - Dec. Jan. - Mar. 1-3月 Apr. - Jun. 4-６月 Jul. - Sep. Revenue Volume Revenue Volume Revenue Volume Revenue Volume Revenue Volume +low-single +low-single -low-single -high-single -low-single U.S. +37%
Slide 39: Major Price Revisions (Domestic)
Major Price Revisions (Domestic) FY 3/2020 ~ FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024 NISSIN FOOD Business Noodles Instant PRODUCTS MYOJO FOODS Jun. 19 (NISSIN FOOD 4-8%、 Jun.(NISSIN FOOD 5-12%、 Jun. (NISSIN FOOD 10-13% MYOJO 3-7%) MYOJO 6-12%) MYOJO 9-12%) CHILLED Chilled / frozen foods FOODS and be
Slide 40: Major Price Revisions (Overseas)
Major Price Revisions (Overseas) FY 3/2020 ~ FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024 U.S. May (Bag, Cup) Aug. Average 36% Apr. 19 (Bag, Cup) Jan. (Bag, Cup) The Americas (Bag, Cup) Brazil May 20 Nov. 20 Feb. 21 Jul. (Bag) Feb. (Bag, Cup) May (Bag, Cup) Jun. (Bag, Cup) (Bag, Cup) (Bag, Cup) (Bag, Cup
Slide 41: Online Integrated Report (VALUE REPORT 2023)
Online Integrated Report (VALUE REPORT 2023) Scheduled to open to the public by the end of 2023 Japanese version of the report is available. Japanese VALUE REPORT 2023 https://www.nissin.com/jp/ir/integrated/ *image 40
Slide 42: Disclaimer
Company plans, business forecasts, strategies, and other information contained in this document are based on management judgments derived from information available at the time of this publication. Be aware that these are only future projections, and actual results may differ due to various risks an
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