Itoham Yonekyu Holdings, Inc. · TSE:2296
Itoham Yonekyu — Q1 FY2023 Earnings Presentation
56 slides from Itoham Yonekyu's earnings presentation, Aug 3, 2023
Slide 1: Financial Results for Q1 of FY2023
Itoham Yonekyu Holdings Inc. Financial Results for Q1 of FY2023 August 03, 2023 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 2: Contents
Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Business summary 03 Supplemental Data 04 Appendix 1 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 3: FY2023 segment change
01 FY2023 segment change ※Round off to second decimal places The segment classification was changed due to group re-organization (effective from April 2023). The previous year's results on this statement are all based on the rearranged figure after the segment change, and it’s different from the
Slide 4: Consolidated Results for the Q1 year to date
01 Consolidated Results for the Q1 year to data ※Round off to second decimal places The Sales increased by +15.2 billion yen (+7.2%) due to rising meat prices and price revisions for processed foods. The Ordinary profit decreased by -2.1 billion yen (-27.2%) due to higher raw material prices, ut
Slide 5: Segment Results of Operations for the Q1 year to date
01 Segment Results of Operations for the Q1 year to data ※Round off to second decimal places The Ordinary profit of Processed Food Division decreased by -1.0 billion yen (-38.3%), because the price revision have not covered the risen raw material costs and utility costs. The Ordinary profit of M
Slide 6: Consolidated Results trends for the Q1 2023FY
01 Consolidated Results trends for the Q1 2023FY ※Round off to second decimal places *billion yen Sales Operating profit/margin ratio 横位置：1.6 cm 縦位置：3.2 cm 横位置：13.0 cm 倍率：100% 縦位置：3.2 cm 倍率：100% Ordinary profit/margin ratio Net income/margin ratio 横位置：1.3 cm 横位置：13.0 cm 縦位置：10.9 cm 縦位置：10.9 cm 倍率：10
Slide 7: Forecast of Consolidated Financial Results
01 Forecast of Consolidated Financial Results ※Round off to second decimal places It would be assumed that the Sales increase by +7.3billion yen (+0.8%) due to rising meat prices and price revisions for processed foods. It would be assumed that the Ordinary profit decreased by -1.0 billion yen (
Slide 8: Consolidated Results trends for the full-year
01 Consolidated Results trends for the full-year ※Round off to second decimal places *billion yen Sales Operating profit/margin ratio 横位置：1.6 cm 縦位置：3.0 cm 横位置：13.0 cm 倍率：100% 縦位置：3.0 cm 倍率：100% Ordinary profit/margin ratio Net income/margin ratio 横位置：1.4 cm 横位置：13.0 cm 縦位置：10.9 cm 縦位置：10.9 cm 倍率：10
Slide 9: Segment Forecast for FY2023 Full-year
01 Segment Forecast for FY2023 Full-year ※Round off to second decimal places In the Processed Food Division, it would be assumed that the Ordinary profit increase by +2.4billion yen (+47.1%), because it will be covered for higher raw material prices and utility costs of the first half by internal
Slide 10: Topics: Price revision progress
01 Topics ※Round off to second decimal places Processed Food Division : We sure to implement the price revisions, despite the exceeded expectations of raw material costs and utility costs. Meat Division : We will cover the tough external environment of oversea business by strengthening income ma
Slide 11: Full-year operating forecast (Quarterly Progress)
01 Full-year operating forecast（Quarterly Progress） ※Round off to second decimal places The progress of Profits was lower than previous year at this 1st Quarter due to increasing costs of raw material prices, utilities etc., and decreasing in profit of ANZCO Foods result also. We plan to make a
Slide 12: Contents
Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Business summary 03 Supplemental Data 04 Appendix 11 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 13: Processed Food Division Results: Q1 year to date
01 Processed Food Division Results : Q1 year to date ※Round off to second decimal places The Ordinary profit decreased by -1.0 billion yen (-38.3%), because previous price revisions have not covered the risen raw material costs, utility costs and distribution costs. Segment Info FY2023 Q1 result b
Slide 14: Processed Food Division Results: Q1 year to date analysis
01 Processed Food Division Results : Q1 year to date analysis ※Round off to second decimal places Sales unit prices of Ham and Sausage increased by +5.1 %, and Cooked process Foods increased by +7.4%. Raw material prices and utility costs (-4.6 billion yen) have exceeded the price revisions effe
Slide 15: Processed Food Division: Full-year earnings forecast
01 Processed Food Division : Full-year earnings forecast ※Round off to second decimal places It would be assumed that the ordinary profit increase by +2.4 billion yen (+47.1%) because the raw material, utility costs, and fuel costs are expected to rise further, mainly in the first half, however th
Slide 16: Processed Food Division: Full-year earnings forecast analysis
01 Processed Food Division : Full-year earnings forecast analysis ※Round off to second decimal places We sure to implement the price revision and expect the +13.0 billion yen effectiveness in the year by April and October procedures. The cost for raw material and utilities would be increased by
Slide 17: Contents
Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Business summary 03 Supplemental Data 04 Appendix 16 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 18: Meat Division Results: Q1 year to date
01 Meat Division Results : Q1 year to date ※Round off to second decimal places The Ordinary profit decreased by -1.1billion yen (-20.7%) due to decreasing in profit of ANZCO Foods related with lower worldwide beef market prices, despite increasing the profit of domestic business by income improvem
Slide 19: Meat Division Results: Q1 year to date analysis
01 Meat Division Results : Q1 year to date analysis ※Round off to second decimal places In the Domestic business, the profitability have improved by strengthening income managements (unit price factor +1.4 billion yen). In the Oversea business, the profit decreased by -2.5 billion yen due to the
Slide 20: Meat Division: Full-year earnings forecast
01 Meat Division : Full-year earnings forecast ※Round off to second decimal places It would be assumed that the ordinary profit decrease by -3.6 billion yen (-16.1%), because decreasing in profit of ANZCO Foods related with lower worldwide beef market prices will not be covered by increasing the p
Slide 21: Meat Division: Full-year earnings forecast analysis
01 Meat Division : Full-year earnings forecast analysis ※Round off to second decimal places Due to falling the global beef market price, it would be assumed that oversea operation decrease the profit -7.5 billion yen. In regard with the domestic business, we assume an increase of “Gross Margin,S
Slide 22: Contents
Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Business summary 03 Supplemental Data 04 Appendix 21 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 23: Group Philosophy and Vision
02 Group Philosophy and Vision Group Principle Contribute to the realization of sound and affluent society through business. Vision A leading food company that continuously evolves with its employees by embracing the spirit of fairness and the challenge to progressions. company’s Principle “Serving
Slide 24: Business summary: History
02 Business summary : History 1928 Denzo Ito founded “Ito Shokuhin Kakougyou” in Osaka. Kiyokazu Shoji founded “Yonekyu Shokuhin” in Numazu. 1965 1934 First in the industry, launched "Cellophane Wiener“. First in the industry, 1981 (Current "Paul Wiener“) built up Factory, it was special factory for
Slide 25: Business summary: Business portfolio
02 Business summary : Business portfolio ※Round off to second decimal places Processed Food Division accounts for about 40% of consolidated sales, and Meat Division accounts for about 60%. The Overseas Sales ratio is 14.8% for mainly ANZCO Foods expanding worldwide sales. Segment Country & Area
Slide 26: Business summary: Products portfolio
02 Business summary : Products portfolio ※Round off to second decimal places The domestic sales by product, Ham and Sausage accounted for 22.2%, and Cooked foods accounted for 18.2%, Cooked Foods sales have expanded since business integration. The oversea sales by product, Meat sales accounted f
Slide 27: Processed Food Division Product Lineup/Market Share
02 Business summary : Processed Food Division Product Lineup/Market Share We have expanded the product lineup to meet changing consumer needs. We have remained the high domestic market share by various products and category management proposals as our strengths. Domestic market share data：QPRTM（
Slide 28: Processed Food Division Growth strategy
02 Business summary : Processed Food Division Growth strategy Since the integration in 2016, we have strengthened Cooked Foods (refrigerated) to meet demand for convenience and time saving. In the future, we will expand our top line sales for normal temperature products and frozen products to me
Slide 29: Processed Food Division Growth strategy
02 Business summary : Processed Food Division Growth strategy We will accelerate the Logistics Efficiency by carrying out the reorganization of production bases and logistics bases, production consolidation, line automation and production DX initiatives. We will encourage the further growth for
Slide 30: Meat Division (domestic) Value Chain/Market Share
02 Business summary : Meat Division (domestic) Value Chain/Market Share We have a full lineup of Beef, Pork, and Chicken, so each breed accounts for more than 10% of the domestic market share. We build a strong value chain from meat production to sales. It works to improve business stability and
Slide 31: Meat Division (domestic) Growth strategy
02 Business summary : Meat Division (domestic) Growth strategy We will build the new processing facilities to expand the WAGYU export capacity in addition to the Sankyo Meat which is one of Japanese top-class WAGYU processing facilities for export. We will handle the expansion of oversea demand fo
Slide 32: Overseas business Overseas expansion
02 Business summary : Overseas business ※Round off to second decimal places Overseas expansion We have 11 bases in 9 countries and regions where based on ANZCO Foods. It has expanded to worldwide. ANZCO Foods provides the NZ products, mainly beef and sheep meat, to more than 80 countries and reg
Slide 33: Overseas business Growth strategy
02 Business summary : Overseas business Growth strategy ANZCO Foods has been increasing its basic earning power year by year due to the effects of internal structural reforms. ANZCO Foods Strengthen highly compatible value-added businesses such as healthcare products and processed foods to stabi
Slide 34: Commitment to Sustainability materiality
02 Business summary : Commitment to Sustainability materiality We “ITOHAM YONEKYU” have identified 7 materiality issues in FY2021 from the perspective of [Materiality for Stakeholders] and [Materiality for us]. In FY 2022, we set KPIs to make achievement towards the those materiality. It’s based o
Slide 35: Commitment to Sustainability KPI progress
02 Business summary : Commitment to Sustainability KPI progress We “ITOHAM YONEKYU” have worked on various initiatives to realize each materiality and achieve KPIs. Materiality issues KPI KPI（目標） 2021年度実績 FY2021 results2022年度実績 FY2022 results Number of externally certified production bases for foo
Slide 36: Contents
Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Business summary 03 Supplemental Data 04 Appendix 35 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 37: Supplemental Data: Profit/Loss
03 Supplemental Data : Profit/Loss ※Round off to second decimal places Year Actual Sale of each country and region billion yen billion yen FY2022 FY2023 FY2022 FY2023 Q1 Q1 Change Q1 Q1 Change Sales 212.3 227.6 +15.2 Sales 212.3 227.6 +15.2 COGS 179.6 195.4 +15.7 横位置：1.1 cm Japan 182.9 横位置：15.5 cm 1
Slide 38: Supplemental Data: S,G & A Expenses / Non-operational G/L
03 Supplemental Data : S,G & A Expenses / Non-operational G/L ※Round off to second decimal places S,G & A Expenses Non-operational Gain/Loss billion yen billion yen FY2022 FY2023 FY2022 FY2023 Q1 Q1 Change Q1 Q1 Change Non-Operational 0.6 横位置：14.7 cm 0.3 -0.3 Sales 212.3 227.6 +15.2 G/L Non-controll
Slide 39: Supplemental Data: Balance Sheet
03 Supplemental Data : Balance Sheet ※Round off to second decimal places billion yen FY2022 FY2023 FY2022 FY2023 Change Change Year end Q1 end Year end Q1 end Current Assets 256.5 281.4 +25.0 Total Liabilities 167.5 196.2 +28.7 Cash and Term Deposits 22.7 24.0 +1.2 Current Liabilities 152.9 179.9 +2
Slide 40: Supplemental Data: Cash flow statement
03 Supplemental Data : Cash flow statement ※Round off to second decimal places billion yen FY2022 FY2023 Q1 Q1 Change ①Cash Flow from Operation -1.9 -0.4 +1.6 横位置：1.0 cm Income Before Taxes 7.6 5.3 -2.3 横位置：14.2 cm 縦位置：2.8 cm 縦位置：3.2 cm Depreciation 倍率：100% 2.7 2.9 +0.1 倍率：100% Change in Recievables
Slide 41: Supplemental Data: Itemized Sales
03 Supplemental Data : Itemized Sales Itemized Sales billion yen Consolidated Processed Food Div. Meat Div. Others FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 Q1 Q1 change Q1 Q1 change Q1 Q1 change Q1 Q1 change Sales 212.3 227.6 +15.2 88.9 93.9 +5.0 123.4 133.7 +10.3 0.0 0.0 +0.0 Ham/Sau
Slide 42: Supplemental Data: Quarterly earnings trends by segment
03 Supplemental Data ： Quarterly earnings trends by segment billion yen H1 H2 Year FY2023 FY2022 Last FY2023 FY2022 Last FY2023 FY2022 Last Change Chage Change Chage Change Chage F'cast results F'cast F'cast results F'cast F'cast results F'cast Rev 3-Aug Rev 9-May Rev 3-Aug Rev 9-May Rev 3-Aug Rev 9
Slide 43: Index
Index 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Business summary 03 Supplemental Data 04 Appendix 42 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 44: Appendix: Overseas Markets
04 Appendix ： Overseas Markets Pork Carcass - Denmark Picnic - USA （DKK/kg） （USD/lb） 15.00 2019 1.90 2020 2019 14.00 2021 1.70 2020 2022 2021 13.00 2023 1.50 2022 2023 12.00 1.30 横位置：0.80 cm 横位置：13.00 cm 11.00 縦位置：2.50 cm 1.10 縦位置：2.50 cm 10.00 倍率：100% 0.90 倍率：100% 9.00 0.70 8.00 0.50 7.00 0.30 11 1
Slide 45: Appendix: CPI
04 Appendix : CPI Beef Chicken 横位置：12.50 cm 横位置：0.5 cm 縦位置：2.5 cm 縦位置：2.5 cm 倍率：100% 倍率：100% Pork Processed Meat 横位置：0.5 cm 縦位置：10.60 cm 横位置：12.50 cm 倍率：100% 縦位置：10.60 cm 倍率：100% Date：Ministry of Internal Affairs and Communications 44 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 46: Appendix: Ham & Sausage Supply
04 Appendix : Ham & Sausage Supply Domestic Production Imports 横位置：2.00 cm 横位置：12.9 cm 縦位置：2.50 cm 縦位置：2.50 cm 倍率：100% 倍率：100% Apr.-May. (ton) 【Domestic】 Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Year FY2022 91,064 ton Domestic FY2022 Volume 47,459 43,605 45,445 45,577 43,462 44,17
Slide 47: Appendix: Ham/Sausage domestic market share
04 Appendix : Ham/Sausage domestic market share ham/sausage domestic market ham/sausage domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍率：104% Apr. May Jun. Jul. Aug. Se
Slide 48: Appendix: Wiener domestic market share
04 Appendix : Wiener domestic market share Wiener domestic market Wiener domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍率：104% Apr. May Jun. Jul. Aug. Sep. Oct. Nov. De
Slide 49: Appendix: Slice pack of ham, bacon, etc. domestic market share
04 Appendix : Slice pack of ham, bacon, etc. domestic market share Slice pack of ham, bacon, etc. domestic market Slice pack of ham, bacon, etc. domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3
Slide 50: Appendix: Pizza/Snacks domestic market share
04 Appendix : Pizza/Snacks domestic market share Pizza/Snacks domestic market Pizza/Snacks domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍率：104% Apr. May Jun. Jul. Aug.
Slide 51: Appendix: Hamburger steak/Meatball domestic market share
04 Appendix : Hamburger steak/Meatball domestic market share Hamburger steak/Meatball domestic market Hamburger steak/Meatball domestic market Value per 100 monitors year-on-year Average price year-on-year Our share 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：
Slide 52: Appendix: Processed chicken food domestic market share
04 Appendix : Processed chicken food domestic market share Processed chicken food domestic market Processed chicken food domestic market Our share Value per 100 monitors year-on-year Average price year-on-year 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 縦位置：3.00 cm 倍率：104% 倍率：104% 倍
Slide 53: Appendix: Marketed Volume/Ending Stock/Market Price (Beef)
04 Appendix : Marketed Volume/Ending Stock/Market Price (Beef) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products 横位置：1.30 cm
Slide 54: Appendix: Marketed Volume/Ending Stock/Market Price (Pork)
04 Appendix : Marketed Volume/Ending Stock/Market Price (Pork) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products 横位置：1.30 cm
Slide 55: Appendix: Marketed Volume/Ending Stock/Market Price (Chicken)
04 Appendix : Marketed Volume/Ending Stock/Market Price (Chicken) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products ※bone-in
Slide 56: Contact Information
Contact Information ALT ITO Bldg. 1-6-21, MITA, MEGURO-KU, TOKYO , 153- 8587, JAPAN ITOHAM YONEKYU HOLDINGS INC. Public & Investor Relations Office TEL : +81-3-5723-6889 You can also contact us from the company website. https://www.itoham-yonekyu-holdings.com The current plans, forecasts, strategies
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