Slide 1: Results Briefing Materials for FY2019/2Q
Results Briefing Materials for FY2019/2Q Kagome Co., Ltd. (2811) http://www.kagome.co.jp/company/ir 1
Slide 2: Topics
Topics 1. Summary of Financial Results for FY2019/2Q <Revenue> Lower revenue due to a reduced supply of tomatoes in domestic agriculture business, And other factors <Core Operating Income> Rise in profits due to effective investment in advertising expenditure for the domestic processed food business
Slide 3: FY2019/2Q Consolidated Results
FY2019/2Q Consolidated Results Unit: 100 million yen Cumulative total 1Q 2Q FY2018*1 FY2019 Year on year Sales Sales Rate of FY2019 YoY FY2019 YoY ratio ratio change Revenue 903 – 885 – -18 -2% 398 -18 487 -0 Core Operating 52 5.7% 54 6.1% +3 +5% 16 -3 38 +5 Income Operating Income 66 7.3% 72 8.1% +
Slide 4: FY2019/2Q Results by Segment
FY2019/2Q Results by Segment Unit: 100 million yen Revenue Core Operating Income FY2018 FY2019 FY2018 FY2019 Segment Year on Rate of Year on Rate of year change year change Beverages 354 353 -2 -1% 22 26 +4 +17% Food and others 279 276 -2 -1% 18 21 +3 +16% Domestic processed food business 633 629 -4
Slide 5: FY2019/2Q Domestic Processed Food Business: Beverages
FY2019/2Q Domestic Processed Food Business Beverages: Revenue of 35.3 billion yen (99% year-on-year), core operating income of 2.6 billion yen (117% year-on-year) Revenue for Kagome vegetable Environment for vegetable beverage market (Source: research by Kagome) beverage (100 million yen) • Market s
Slide 6: FY2019/2Q Domestic Processed Food Business: Food and others
FY2019/2Q Domestic Processed Food Business Food and others: Revenue of 27.6 billion yen (99% year-on-year), core operating income of 2.1 billion yen (116% year-on-year) Home cooking condiments, foods (99% YoY) Tomato ketchup • Comprehensive promotion at Omurice Stadium resulted in year-on-year sales
Slide 7: FY2019/2Q Domestic Agriculture Business
FY2019/2Q Domestic Agriculture Business Revenue of 5.2 billion yen (83% YoY), core operating income 0.0 billion yen (1% YoY) Trends in tomato market prices yen/kg 550 500 Trends in market prices and Kagome tomato supply 450 400 2016 First quarter 350 2017 2018 • Procurement volume dropped more than
Slide 8: FY2019/2Q International Business
FY2019/2Q International Business Revenue of 23.1 billion yen (101% YoY), core operating income 0.6 billion yen (79% YoY) Performance at main subsidiaries in first half of year Unit: 100 million yen Revenue Core operating income Y on Y Y on Y FY2019 Y on Y (excl. exchange FY2019 Y on Y (excl. exchang
Slide 9: Promoting Services Business and Environmental Protection Measures
Promoting Services Business and Environmental Protection Measures Promoting Services Business Health Business Division implements health support programs • Dietary education consultations, paid seminars for corporations and local governments • Expected sales of 30 million yen for fiscal 2019 Lease i
Slide 10: Factors for Fluctuating Core Operating Income
FY2019/2Q Factors for Fluctuating Core Operating Income Unit: 100 million yen FY2018 Domestic processed food business Revenue decline 国 Cost change (1) 内 加 Cost reduction (2) 工 Rise in transport/storage charges fluctuations 食 (3) 品 Optimize sales promotion costs 事 業Reduce sales promotion fixed costs
Slide 11: FY2019/2Q: Operating Income and Net Income
FY2019/2Q: Operating Income and Net Income Factors behind the rise in operating income and profits FY2018 FY2019 Core operating income 52 54 Other income 17 (1) 19 (2) Other expenses -3 -1 Operating income 66 72 Profit before income tax 67 72 Income tax expense 21 17 Effective tax rate 31% 24% (3) N
Slide 12: Changes in Statement of financial position for FY2019/2Q
Changes in Statement of financial position for FY2019/2Q Assets/liabilities and equity ¥194.2 B (down ¥5.6 B from the end of FY2018) Unit: 100 million yen Unit: 100 million yen Current assets -109 Cash and deposits -88: Repayment of interest-bearing liabilities, dividend payouts etc. 1,067 Current a
Slide 13: Cash Flows for FY2019/2Q
Cash Flows for FY2019/2Q Unit: 100 million yen FY2018 FY2019 Change Cash flows from operating activities (A) 76 68 -9 Cash flows from investing activities (B) -26 -60 -34 Free cash flows (A+B) 50 7 -43 Cash flows from financing activities -93 -94 -1 Cash flow fluctuation factors <Cash flows from ope
Slide 14: Measures for the Second Half of FY2019: Beverages
Measures for the Second Half of FY2019 Domestic Processed Food Business Beverages: Activate vegetable beverages by new product releases and promotions New New July 1 shipments Revise shipping prices for beverages in large 720 ml PET bottle 1000 ml paper containers container • Revise prices for large
Slide 15: Measures for the Second Half of FY2019: Food and others
Measures for the Second Half of FY2019 Domestic Processed Food Business Food and others: Strengthen proposals for vegetable dishes of prepared foods with the 7 strategic dishes Vegetable ingredients / Proposals condiments Prepared Foods / Side Dishes for Mass Retailers • Create revenue base by devel
Slide 16: Measures for the Second Half of FY2019: Domestic Agriculture Business
Measures for the Second Half of FY2019 Domestic Agriculture Business Promote monetization of domestic agriculture businesses through an array of policies Continue structural reform • Increase unit selling prices in autumn/between-crops • Increase proportion of profitable products such as High Lycope
Slide 17: Measures for the Second Half of FY2019: International Business
Measures for the Second Half of FY2019 International Business Reform earnings structure at individual overseas subsidiaries, expand B to C business in Asia. U.S.: Kagome Inc. • Strengthen ability to propose menus to each customer • Initiatives to strengthen earnings potential by narrowing down the n
Slide 18: FY2019 Consolidated Results Forecasts
FY2019 Consolidated Results Forecasts Revenue Core operating income FY2018 FY2019 FY2018 FY2019 Full year First half Rate of Full year First half Rate of Results Results forecast results progress forecast results progress Domestic processed food 1,329 1,359 629 46% 115 112 107 47 44% business Domest
Slide 19: Second Mid-term Management Plan: Guidelines for Shareholder Return
Second Mid-term Management Plan: Guidelines for Shareholder Return Current guidelines and new guidelines in second mid-term management plan Share dividend in 4 most recent years and payout ratio <Past guidelines for shareholder return> (Payout ratio) • Payout ratio 40% (Yen) 45 70% 40 60% 35 50% 配当金
Slide 20: 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