Slide 1: Briefing Materials for FY2024/2Q
Briefing Materials for FY2024/2Q Kagome Co., Ltd. Securities Code: 2811 Figures in these materials ・ Amounts are rounded down to the nearest 0.1 billion yen. For income, certain mounts are rounded down to the nearest 10 million yen. ・ Percentages are rounded to one decimal place. 1 ©2024 Kagome Co.,
Slide 2: Topics
Topics 1. Summary of Financial Results for FY2024/1H 2. FY2024 Earnings Forecast 3. FY2024/2H Strategies 4. Reference ©2024 Kagome Co., Ltd. 2
Slide 3: 1. Summary of Financial Results for FY2024/1H
1. Summary of Financial Results for FY2024/1H ©2024 Kagome Co., Ltd. 3
Slide 4: FY2024/1H Consolidated Results
FY2024/1H Consolidated Results ・ Revenue: Revenue increased on the addition of Ingomar as a consolidated subsidiary ・ Core operating income: Core operating income rose thanks to price revisions and other factors, which covered the impact of continued rises in raw materials prices FY2024/1H Result Yo
Slide 5: FY2024/1H Results by Segment
FY2024/1H Results by Segment ・ Domestic Processed Food Business: Revenues increased overall despite decreased revenues for Direct Marketing thanks to increased revenues for Beverages and Food-Other. Core operating income increased across all segments. ・ International Business: Revenues and core oper
Slide 6: FY2024/1H Domestic Processed Food Business
FY2024/1H Domestic Processed Food Business ・ Demand stimulation measures implemented after price revisions resulted in increased revenue without any drop in sales volume ・ Core operating income rose despite continued rises in raw materials prices thanks to the effects of price revisions Revenue Core
Slide 7: Domestic Processed Food Business — Trend After Price Revisions
FY2024/1H Domestic Processed Food Business —Trend After Price Revisions ・ Vegetable Beverages: Maintained performance after price revisions without dipping below sales volume from the previous fiscal year. ・ Foods for consumer use / Institutional and industrial use: 1H cumulative sales volume increa
Slide 8: FY2024/1H International Business
FY2024/1H International Business ・ Revenue increased significantly on the addition of Ingomar as a consolidated subsidiary ・ Core operating income rose amid price revisions linked to market prices Revenue Unit: billion yen Core operating income Unit: billion yen 140.0 76.1 forex effects Core operati
Slide 9: FY2024/1H Factors Contributing to Core Operating Income Changes
FY2024/1H Factors Contributing to Core Operating Income Changes ・ Core operating income increased to cover higher costs thanks to price revisions FY2023/1H 8.8 Unit: billion yen Increase in income owing to price revisions Domestic Processed Food Business +5.4 Increase in sales volume …(1) +6.1 +0.7
Slide 10: FY2024/1H Factors Behind Changes in Net Income
FY2024/1H Factors Behind Changes in Net Income ・ Rose from the previous year on higher core operating income and other revenues FY2024/1H Result FY2023/1H Unit: billion yen YoY Change Result Core operating income 16.05 +7.23 82.0% 8.82 Other income 9.51 (1) +9.30 4428.6% 0.21 Other expenses 0.28 +0.
Slide 11: FY2024/1H Changes to Statement of Financial Condition
FY2024/1H Changes to Statement of Financial Condition ・ Assets and Liabilities both increased on the addition of Ingomar as a consolidated subsidiary Details of Changes from the Previous Fiscal Year End Consolidated Statement of Financial Condition (Unit: billion yen) (As of June 30, 2024) Unit: bil
Slide 12: FY2024/1H Changes in Cash Flow
FY2024/1H Changes in Cash Flow ・ Free cash flows: Negative due to additional acquisition of Ingomar ・ Cash flows from financing activities: Rose on increase in short-term borrowings FY2024/1H Result FY2023/1H Unit: billion yen YoY Change Result Cash flows from operating activities (A) 26.8 17.8 +197
Slide 13: 2. FY2024 Earnings Forecast
2. FY2024 Earnings Forecast ©2024 Kagome Co., Ltd. 13
Slide 14: FY2024 Earnings Forecast
FY2024 Earnings Forecast ・ Full-year earnings forecast remains unchanged at Revenue of 296.0 billion yen and core operating income of 23.0 billion yen. ・ During 2H, we will focus on measures to counteract the rising cost of sales. We will aim for an increase in consolidated core operating income. Re
Slide 15: FY2024/2H Core Operating Income Issues and Measures
FY2024/2H Core Operating Income Issues and Measures ・ To address costs in the Domestic Processed Food Business, which are expected to rise on levels similar to 1H, we will focus on maintaining and expanding sales volume, and cost reduction activities ・ In the International Business, we will respond
Slide 16: 3. FY2024/2H Strategies
3. FY2024/2H Strategies ©2024 Kagome Co., Ltd. 16
Slide 17: FY2024/2H Strategies — Topics in Domestic Business (Beverages)
FY2024/2H Strategies —Topics in Domestic Business (Beverages) ・ Continue working to address a recovery in core operating income, an issue for the latter half of the Mid-Term Management Plan ・ Increase vegetable consumption opportunities and implement demand stimulation measures to reinvigorate the m
Slide 18: FY2024/2H Strategies — Topics in Domestic Business (Food Products)
FY2024/2H Strategies —Topics in Domestic Business (Food Products and Institutional and Industrial Use) ・ Propose menus that are inexpensive and easy to please the family, aligning with consumer focus on cost and time performance ・ For Institutional and Industrial Use, promote earning structure refor
Slide 19: FY2024/2H Strategies — International Business
FY2024/2H Strategies — International Business ・ Despite continued strong demand for food service companies, the 2024 tomato paste market will turn downward ・ Collaborate with the Global Agri Research & Business Center to generate synergy with Ingomar Strengthen Group collaboration using company syst
Slide 20: Kagome's goals remain the same despite dramatic changes
Kagome’s goals remain the same despite the dramatic changes in business environment What Kagome Become a “strong company capable of sustainable growth, strives for by 2025 using food as a means of resolving social issues” 2025 Transform from a “tomato company” Vision to a “vegetable company” ©2024 K
Slide 21: 4. Reference
4. Reference ©2024 Kagome Co., Ltd. 21
Slide 22: Topics in Domestic Processed Food Business — Beverages
Topics in Domestic Processed Food Business — Beverages ・ Tomato juice sales were strong thanks to capturing new and repeat customers are a favorable factor Year on year comparison of revenue from beverages (excluding lactic acid drinks) by sales channel and container size Sales by sales channel and
Slide 23: Topics in Domestic Processed Food Business — Direct Marketing
Topics in Domestic Processed Food Business — Direct Marketing ・ The number of subscription customers for supplement Kenko Chokusobin decreased. Sales of mainstay vegetable drinks and supplements declined from the previous year. Revenue by core product Vegetable beverages 3.6 billion yen (-3% YoY) Su
Slide 24: Topics in Domestic Processed Food Business — Food and Others
Topics in Domestic Processed Food Business — Food and Others ・ Tomato ketchup recovered quickly after price revisions and needs expanded among families with children, who use large amounts Foods for consumer use Revenue of 9.9 billion yen (+9% YoY) ・Maintained volume after price revisions Revenue by
Slide 25: Topics in International Business
Topics in International Business ・ Revenue increased significantly on the addition of Ingomar as a consolidated subsidiary ・ Core operating income rose on price revisions linked to the market Unit: billion yen Revenue Core operating income FY2024/1H Result FY2024/1H Result YoY FY2023/1H YoY FY2023/1
Slide 26: Sustainability & Topics
Sustainability & Topics ・ Sustainability: Selected as an A List Company, the highest rating, in CDP Water Security ・ Topics: Formation of Future-oriented Food Factory Consortium Highest rated in “CDP Water Security” Formation of a Selected as an “A List Company” “Future-oriented Food Factory Consort