Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — Q2 FY3/2024 Earnings Presentation
42 slides from Nissin Foods's earnings presentation, Nov 9, 2023
Slide 1: Financial Results for FY 3/2024 2Q
SS Financial Results for FY 3/2024 2Q November 9, 2023 NISSIN FOODS HOLDINGS CoO., LTD. (TSE Stock Code: 2897) Financial Results Presentation: November 10, 2023
Slide 2: CFO introduction to FY 3/2024 2Q results
• My name is Takashi Yano, and I am the CFO of NISSIN FOODS HOLDINGS. • Today, I will report on the FY 3/2024 2Q Financial Results and FY 3/2024 Revised Forecasts, which is the first item in the table of contents of the Financial Results for FY 3/2024 2Q, disclosed at 1:15 p.m. this afternoon. • Our
Slide 3: Summary of three main points
• Please refer to slide 2. • Here is a summary of the three main points I will cover today. • First, in the second quarter of FY 3/2024, revenues and core operating profit of existing businesses increased 10.5% and 68.1% year-on-year, respectively. This improvement was mainly due to the effect of pr
Slide 4: FY 3/2024 2Q Financial Results
FY 3/2024 2Q Financial Results
Slide 5: Second quarter results
• Please refer to slide 4. • The left side of this table shows our second quarter results based on institutional accounting. • Revenue increased in the Instant Noodles, Non-Instant Noodles, and Overseas Businesses, reaching a second-quarter record high of 350.4 billion yen, an increase of 33.4 billi
Slide 6: Core operating profit change factors
• Please refer to slide 5. • On this slide, we analyzed factors that contributed to the changes in the core operating profit of existing businesses during the second quarter. The details are presented on a constant currency basis. • Revenues increased mainly due to increased revenues, shown in the p
Slide 7: Financial summaries by segment
• Next up we have financial summaries by segment on slide 6. • All three businesses posted increases in revenues and profits, reflecting steady demand even after price revisions • Although the Domestic Instant Noodles Business experienced a decline in profits since the second quarter of last year du
Slide 8: Revenue results by segment
• Please refer to slide 7. • Slide seven depicts a breakdown of revenue results by segment. • Revenues increased in the Domestic Instant Noodles Business by 7.0 billion yen, or 5.8%, year on year. • Effects of the price revisions, implemented for the second consecutive year in June of this year, off
Slide 9: Core operating profit by segment
• Please refer to slide 8. • This slide shows the results of core operating profit by segment. • Material costs in the Domestic Business increased year on year, but remained lower than we planned, resulting in increased profit. • NISSIN YORK and KOIKE-YA continued to drive profits in the Domestic No
Slide 10: Revised full-year forecast
• Please refer to slide 9. • As previously announced, we revised our revenue forecast upward to 720 billion yen, up 10.0 billion yen, or 1.4%, from the initial forecast. For the core operating profit of existing businesses, we revised our initial forecast upward to 80.0 billion yen, up 16.0 billion
Slide 11: Full-year forecast by segment
• Please refer to slide 10. • Here is our full-year earnings forecast for FY 3/2024. • We expect revenues to remain within expectations in the Domestic Instant Noodles Business, while we expect to see a 1.5 billion yen, or 4.9%, increase, from our initial forecast to 32.0 billion yen in core operati
Slide 12: CEO overview and dividend increase
• My name is Koki Ando, CEO of NISSIN FOODS Holdings. • Today, I will begin today by reporting on FY 3/2024 2Q overall and our future direction. Then, I will discuss the progress of our environmental strategy, EARTH FOOD CHALLENGE 2030. • After those topics, I have comments on two more points. • Fol
Slide 13: First half review and future outlook
• At this point, I will go over the first half of the year and our future outlook. • The Domestic Instant Noodles Business, Domestic Non-Instant Noodles Business, and Overseas Business all posted higher revenue and profits. • As a result, our full-year FY 3/2024 profit forecast just announced is clo
Slide 14: Core operating profit by business segment
• This chart shows changes in core operating profit by business segment. The profit margin for our Domestic Instant Noodles Business improved, partly due to the effect of price revisions. • In an environment where more consumers are looking for affordable products, we are pursuing a strategy to retu
Slide 15: New U.S. plant in Greenville
• Next, allow me to discuss our new plant in the United States. • The Greenville plant, scheduled to begin operations in August 2025, will be our third production site in the U.S. Our first plant in the U.S. was our Gardena Plant in California, which began operations in 1972. Our second, the Lancast
Slide 16: EARTH FOOD CHALLENGE 2030 progress
• These are the results so far of the NISSIN FOODS Group EARTH FOOD CHALLENGE 2030 environmental strategy. • In May of this year, we revised our CO2 reduction target upward. • The CO2 targets at the bottom of the slide for Scope 1 and 2, which represent our own emissions, changed from -30% compared
Slide 17: TNFD and Nature Positive
• This slide addresses TNFD. • TNFD relates to disclosures of financial information that impacts nature. • The abbreviation stands for Taskforce on Nature-related Disclosures. • Complying with TNFD, we aim to properly assess and report the risks and opportunities related to natural capital posed by
Slide 18: NISSIN FOOD PRODUCTS initiatives
• My name is Noritaka Ando, president of NISSIN FOOD PRODUCTS. • I will discuss the major initiatives for the fiscal year, which mainly relate to the NISSIN FOOD businesses in Japan and new businesses. 17
Slide 19: Instant noodles market environment
• The left side of page 18 addresses the Instant Noodles Business market environment, showing a September 2023 versus September 2021 comparison of prices for typical food products that may compete with instant noodles. • As you can see, under the current inflationary environment, food prices other t
Slide 20: Monthly sales and product strategy
• Please turn to page 19. • This slide summarizes the monthly sales at the top compared to the same month of the previous year. The middle section shows product strategy in chronological order. The lower section shows specific examples of marketing and branding measures over the first half of the ye
Slide 21: Growing long-selling standard products
• Moving to page 20, we intend to grow sales of long-selling standard products in the second half and beyond. We define standard products as core products within our company. • The seven standard products shown at the top are in the CUP NOODLE, DONBEI, U.F.O., and CHICKEN RAMEN series. • We can say
Slide 22: KANZEN MEAL series lineup
• Please turn to page 21. • The KANZEN MEAL series, launched in May of last year, has sold more than 15 million servings in the one year and four months since launch. • We expanded the product lineup to suit various occasions, and we believe that the new food concept of pursuing a perfect balance of
Slide 23: KANZEN MEAL touchpoints and collaborations
• Turning to page 22, in addition to expanding the product lineup, we are working to create more touchpoints for customers to enjoy KANZEN MEAL and optimized nutri-dense meals more readily. • Looking at the top left, we offer services for companies that emphasize health management through KANZEN MEA
Slide 24: Health products market and association
• Please turn to page 23. • Recently, the market for products based on health has been expanding very rapidly. • In this context, various producers have entered the market, and we expect that various players, including foreign companies and companies from other industries, will enter the market in t
Slide 25: KANZEN MEAL sales targets
• Last, please turn to page 24. • KANZEN MEAL products reached sales of 3 billion yen on a market sales price in FY 3/2023. • We set a target of 6 billion yen for FY 3/2024, and are currently working toward that goal. • We set an even higher goal of 10 billion yen for next year, and we believe we ca
Slide 26: Status of Our Businesses
Status of Our Businesses 25 25
Slide 27: Domestic Instant Noodles Business
SS | Domestic Instant Noodles Business Revenue and profit increased due to price revisions besides expanding sales of main products despite rising raw materials costs. Revenue il. Yen) mm FY 3/2023 Mi FY 3/2024 NISSIN FOOD PRODUCTS (+6%) Cup type : New Products such as CUP NOODLE TANTAN and TOKUJYO
Slide 28: Domestic Non-Instant Noodles Business
l Domestic Non-Instant Noodles Business SS 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 ii Yen) Mm FY 3/2023 MM FY 3/2024
Slide 29: Non-Instant Noodles Businesses
l Non-Instant Noodles Businesses launched in September 2022, performed well Lactobacillus Beverage Market PILKUL MIRACLE CARE » Lactobacillus beverage market expanding due to activity in the units sold in first year sleep-related market since launch! Increase production capacity of the PILKUL series
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 il. Yen) (mm FY 3/2023 MM FY 3/2024 U.S. : Increased due to strengthening of sales of value-added pr
Slide 31: The Americas (NISSIN FOODS U.S.A.)
| The Americas (NISSIN FOODS U.S.A.) Ss Recovering despite lower volume year on year. Promote aggressive marketing and sales measures to reach the last year performance levels. ™ Revenue (U.S.) voy U.S. * 0 Local currency basis +415% ~ Expanding premium products and developing markets for high-value
Slide 32: The Americas (Brazil, Mexico)
I 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 (
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 i. Yen) Mmm FY 3/2023 MM FY 3/2024 Hong Kong : Decreased due to lower sales volume of bag type noodis (Forex impact +0.6 Bil. yen) Mainl
Slide 34: China (incl. H.K.)
| China (incl. H.K.) @ Revenue (FY 12/2023) Jan.-Sep. (HKSM) Mainland China Hong Kong 2022 2023 Jan-Sep. van-Sep, (Year) m OP/OPM by Segment (FY 12/2023) Jan.-Sep. (HKSM) Mainland China Hong Kong 2022 2023 Jan-Sep. Jan-Sep (year) El Hong Kong > Instant Noodles Business : Recovery trend of cup-type n
Slide 35: Asia
| Asia Ww Profit Increased in all regions due to price revisions in each country and lower material costs Revenue ii Yen) Mmm FY 3/2023 MM FY 3/2024 1Q 2a 1H Core Operating Profit (i. ven) By descending order of revenue Thailand : Increased (Forex impact +0.2 Bil. yen) India : Increased (Forex impac
Slide 36: EMEA
| EMEA SS Revenue rose approximately 1.5 times year-on-year in the fast-growing instant noodles market Revenue il. Yen) Mmm FY 3/2023 Mi FY 3/2024 Core Operating Profit «ii yen) + CUP NOODLES, Soba and Demae Ramen brands continued to perform well * Increased mainly in the U.K., Germany, and France (
Slide 37: Appendix
Appendix 36 36
Slide 38: Revenue and Volume in the Americas and Overseas (YoY)
SS l Revenue and Volume in the Americas and Overseas (YoY) FY 3/2023 FY 3/2024 —— Jul.-Sep. —— ~—— Oct.-Dec. ——- ——— Jan.-Mar. ——- ——— Apr.-Jun. —— —— Jul.-Sep. —— Revenue Volume Revenue Volume Revenue Volume Revenue Volume Revenue Volume 9 +low-single 9 +low-single 9 -low-single 9 -high-single 9 -l
Slide 39: Major Price Revisions (Domestic)
l Major Price Revisions (Domestic) FY 3/2020 ~ FY 3/2021 FY 3/2022 FY 3/2023 NISSIN FOOD PRODUCTS MYOJO FOODS Jun. 19 (NISSIN FOOD 4-8%, Jun.(NISSIN FOOD 5-12%, Jun. MYOJO 3-7%) MYOJO 6-12%) a CHILLED Be FOODS c 2 Apr. 19 (3-9%) Mar.(6-12%) Mar.(7-17%) 88 FROZEN £8 Foops 3 z Mar.(6-13%) Mar.(6-20%)
Slide 40: Major Price Revisions (Overseas)
l Major Price Revisions (Overseas) The Americas FY 3/2020 ~ FY 3/2021 FY 3/2022 FY 3/2023 U.S. Apr. 19 (Bag, Cup) May (Bag, Cup) Jan. (Bag, Cup) es se Brazil May 20 Nov.20 Feb. 21 Jul. (Bag) Feb. (Bag, Cu May (Bag, C (Bag, Cup) (Bag, Cup) (Bag, Cup) 9) Feb. (B29, Cup) eae) Mexico” “Implemented for e
Slide 41: Online Integrated Report (VALUE REPORT 2023)
SS l 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 hittps://www_nissin.com/jp/ir/integrated/ WHAT | SER” ORLAPHU THES ED EARTH FOOD CREATOR « swine *image AN-Fevay ona le . im, o
Slide 42: Forward-looking statements disclaimer
SS 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
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