Kagome Co., Ltd. · TSE:2811
Kagome — FY2018 2Q Earnings Presentation
17 slides from Kagome's earnings presentation, Oct 30, 2019
Slide 1: Results Briefing Materials for FY2018/2Q
Results Briefing Materials for FY2018/2Q Kagome Co., Ltd. (2811) http://www.kagome.co.jp/company/ir Copyright © KAGOME CO., LTD. All rights reserved. 1
Slide 2: Today's Topics
Today’s Topics 1. Summary of Financial Results for FY2018/2Q • Net sales and profits decreased; when the results of PBI for the previous year are excluded, net sales increased and profits decreased. <Net sales> Although the sales of the beverage business and the direct marketing business in the dome
Slide 3: FY2018/2Q Consolidated Results
FY2018/2Q Consolidated Results Unit: 100 million yen Year on year excluding the Change from the results Results Year on year results of PBI forecasts Ratio to net Rate of Rate of Rate of (Reference) sales change change change Net sales 1,024 - -17 -2% +16 +2% -20 -2% Operating income 53 5.1% -9 -15%
Slide 4: FY2018/2Q Results by Segment
FY2018/2Q Results by Segment Unit: 100 million yen Net sales Operating income FY2017 FY2018 FY2017 FY2018 Rate of Rate of Year on year Year on year change change Domestic processed food 747 752 +05 +1% 51 43 -8 -16% business Domestic agriculture 61 63 +02 +3% 3 0 -3 -95% business International busin
Slide 5: FY2018/2Q Domestic Processed Food Business
FY2018/2Q Domestic Processed Food Business Beverages: net sales of 43.4 billion yen, operating income of 2.4 billion yen, increase in sales and decrease in income Yasai Seikatsu 100 Smoothie • 330 ml recap container • Feeling of fullness after drinking, healthy snacking • Strong sales due to the inc
Slide 6: FY2018/2Q Domestic Processed Food Business
FY2018/2Q Domestic Processed Food Business Food and others: net sales of 31.8 billion yen, operating income of 1.9 billion yen, decrease in sales and income Foods "Kihon no Tomato Sauce" • Strong sales due to an advertisement linking CM and SNS Tomato ketchup and others • Solid performance of tomato
Slide 7: FY2018/2Q Domestic Agriculture Business
FY2018/2Q Domestic Agriculture Business Net sales of 6.3 billion yen, operating income of 16 million yen, increase in sales and decrease in income Focus on sales of high value-added products • Increase in net sales of fresh tomatoes Trends in tomato market prices at the Tokyo Metropolitan Central Wh
Slide 8: FY2018/2Q International Business
FY2018/2Q International Business Net sales of 23.1 billion yen, operating income of 0.6 billion yen, decrease in sales and increase in income U.S.: Kagome Inc. • Net sales increase due to change in the timing of intra-Group sales transactions • Decrease in income mainly due to the temporary worsenin
Slide 9: Factors Contributing to Operating Income Changes in FY2018/2Q
Factors Contributing to Operating Income Changes in FY2018/2Q Unit: 100 million yen FY2017 processed food business 62 Increase in income due to higher sales +2 Increase in equipment costs and labor costs -3 Change in raw material prices, etc. +4 Impact of exchange rates -4 Cost reduction +8 Costs an
Slide 10: Changes in Consolidated Balance Sheet for FY2018/2Q
Changes in Consolidated Balance Sheet for FY2018/2Q Total assets/liabilities and net assets Unit: 100 million yen ¥188.1 B (down ¥7.6 B from the end of FY2017) Current assets -65 Capital adequacy ratio: 53.9% Cash and deposits -45: repayment of interest-bearing (up 1.8 points from the end of FY2017)
Slide 11: Cash Flows for FY2018/2Q
Cash Flows for FY2018/2Q Unit: 100 million yen FY2017 FY2018 Change Cash flows from operating activities (A) 129 74 -55 Cash flows from investing activities (B) 34 -26 -60 Disbursement and proceeds pertaining to 102 0 -102 time deposits and securities (C) Free cash flows (A+B-C) 61 48 -13 Cash flows
Slide 12: Measures for the Second Half of FY2018: Domestic Processed Food Business
Measures for the Second Half of FY2018 Domestic Processed Food Business Beverages: strengthening of the profit structure by renewal Renewal of the core brands • Yasai Seikatsu 100 Regular • Yasai Ichinichi Kore Ippon <現行> Beverages with functional claims • Change to the new sales pitch to promote un
Slide 13: Measures for the Second Half of FY2018: Domestic Processed Food Business
Measures for the Second Half of FY2018 Domestic Processed Food Business Food and others: strengthening of activities to increase vegetable dishes at the table through the linkage of home products, institutional and industrial products, and the agriculture business Proposal by the linkage of home pro
Slide 14: Measures for the Second Half of FY2018: Domestic Agriculture Business
Measures for the Second Half of FY2018 Domestic Agriculture Business Strengthening of the product lines of high value-added tomatoes • Plan to show the functional claims of tomatoes that contain large quantities of GABA • The first fresh tomato foods with functional claims • To ensure greater differ
Slide 15: Measures for the Second Half of FY2018: International Business
Measures for the Second Half of FY2018 International Business Expansion of the business for global food service • Strengthening of the ability to propose menus for each customer • Application of the business model of America to Asia and Europe Strengthening of the profit structure of each subsidiary
Slide 16: FY2018 Full-Year Results Forecasts
FY2018 Full-Year Results Forecasts Unit: 100 million yen Net sales FY2017 FY2018 Difference between current estimate Forecast at Current and forecast at beginning estimate beginning of of period period Domestic processed food business 1,576 1,613 1,613 - Domestic agriculture business 114 126 126 - I
Slide 17: Note
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 and sole