Ezaki Glico Co., Ltd. · TSE:2206
Ezaki Glico — FY2023 Earnings Presentation
40 slides from Ezaki Glico's earnings presentation, Feb 13, 2024
Slide 1: Glico Group Financial Results for the Fiscal Year Ended December 31, 2023
Healthier days, Wellbeing for life [Notes of caution] e This documents is an English translation of the Japanese original. In the event of any differences or inconsistencies between the Japanese and English versions, the Japanese language version shall take precedence. Glico Group Financial Results
Slide 2: Contents
Contents I. FYE December 2023 Earnings P. 3-16 Report II. FYE December 2024 Earnings P. 17-24 Forecast III.Progress Report for the Mid- P. 25-32 Term Business Plan *Supplemental Materials P. 33-39 ©2024 Ezaki Glico Co., Ltd. All Rights Reserved 2
Slide 3: I. FYE December 2023 Earnings Report
I. FYE December 2023 Earnings Report ©2024 Ezaki Glico Co., Ltd. All Rights Reserved 3
Slide 4: Summary for the FYE December 2023
Summary for the FYE December 2023 m™ Net sales: Increased in all domestic and overseas segments, up 9.4% year on year. ™ Operating income: Increased in all domestic and overseas segments, up 45.0% year on year. ™ Net sales: 351 billion yen (increase of +5.5% year on year) ™ Operating income: 19 bill
Slide 5: Status of Consolidated Performance
Status of Consolidated Performance Glico m Net sales: Increased in all domestic and overseas segments, up 9.4% year on year. ™ Operating income: Increased in all domestic and overseas segments, up 45.0% year on year. (Unit: 100 million yen) FYE Dec. 2022 FYE Dec. 2023 Change from previous period Net
Slide 6: Status of Operating Income
Status of Operating Income Gpico- (Unit: 100 million yen) FYE Dec. 2022 FYE Dec. 2023 co Ratio Net sales 3,039 100.0% 3,325 100.0% Cost of sales 1,931 63.6% 2,087 62.8% Gross profit 1,107 36.4% 1,238 37.2% Freight and charges 271 8.9% 261 7.9% Sales promotion 89 2.9% 108 3.3% Advertising expenses 10
Slide 7: Factors of Increases (Decreases) in Operating Income
Factors of Increases (Decreases) in Operating Income Glico 300 250 200 150 100 50 ©2024 Ezaki Glico Co., Ltd. All Rights Reserved Domestic: Increased as a result of sales growth, price revisions and other factors despite soaring raw material prices and an increase in SG&A expenses, etc. Overseas: In
Slide 8: Status of Net Sales by Segment
Status of Net Sales by Segment Gpico- m Domestic: Increased in all business, +7.1% year on year m™ Overseas: Increased in China, ASEAN and the U.S.A., +18.9% year on year. (Unit: 100 million yen) FYE Dec. 2022 FYE Dec. 2023 Change from previous period Total 3,039 3,325 +9.4% (Domestic) 2,440 2,613 +
Slide 9: Status of Operating Income by Segment
Status of Operating Income by Segment G** m Domestic: Increased mainly due to an increase in net sales and price revisions, up 24.1% year on year. ™ Overseas: Increased mainly due to an increase in net sales and recovery from the previous year's lockdown in China up 249.4% year on year. (Unit: 100 m
Slide 10: By Segment: Health and Food Business
By Segment: Health and Food Business Glico m Main brands in the Health and Food Business segment: —>"Almond Koka,” “SUNAO,” “PAPICO,” “Ice no mi,” “DONBURI-TEI” m Segment net sales: Increased, +5.6% year on year to 50.4 billion yen m Segment income: Increased, +1.0% year on year to 2.0 billion yen —
Slide 11: By Segment: Dairy Business
By Segment: Dairy Business Glico @ Main brands in this segment: > "BifiX Yogurt,” “Giant Cone,” “Seventeen Ice,” "Cafe au lait,” “Pucchin Pudding” m Segment net sales: Increased, +5.5% year on year to +69.6 billion yen m Segment income: Increased, +98.1% year on year to 0.5 billion yen — Strengthene
Slide 12: By Segment: Nutritional Confectionery Business
By Segment: Nutritional Confectionery Business Glico @ Main brands in this segment: => "Pocky,” “Bisco,” “Pretz,” “Caplico” m Segment net sales: Increased, +7.0% year on year to +61.8 billion yen m Segment income: Increased, +37.3% year on year to +6.5 billion yen — As a result of an increase in net
Slide 13: By Segment: Overseas Business
By Segment: Overseas Business @China (Unit: million CNY) Net sales 1,261 1,482 +17.5% Operating income 60 143 +135.8% @ ASEAN* (Unit: million USD) Net sales 112 131 +16.3% Operating income =113) -10 -% @U.S.A. ** (Unit: million USD) Net sales 108 114 +5.5% Operating income 17 21 +17.8% ©2024 Ezaki G
Slide 14: By Segment: Overseas Business (China)
By Segment: Overseas Business (China) Glico @ Market environment: Cookies Market (offline) declined -5.1% year on year. (increase of +0.8% in the first half, decrease of -11.4% in the second half) @ Net sales: 1,482 million CNY based on shipments and local currencies. Increase of +17.5% year on year
Slide 15: By Segment: Overseas Business (ASEAN)
By Segment: Overseas Business (ASEAN) Market environment: Cookies Market grew +6.0% year on year in Thailand and +1.6% year on year in Indonesia. Net sales: 131 million USD based on shipments and local currencies, an increase of +16.3% year on year Operating income: -10 million USD, an improvement o
Slide 16: By Segment: Overseas Business (U.S.A.)
By Segment: Overseas Business (U.S.A.) ie @ Market environment: Chocolate Market grew +5.8% year on year (increase of +8.8% in the first half, increase of +3.0% in the second half) @ Net sales: 114 million USD based on shipments and local currencies, an increase of +5.5% year on year Operating incom
Slide 17: II. FYE December 2024 Earnings Forecast
II. FYE December 2024 Earnings Forecast ©2024 Ezaki Glico Co., Ltd. All Rights Reserved 17
Slide 18: Consolidated Earnings Forecast
Consolidated Earnings Forecast Giico- m™ Net sales: Increase in all businesses, up 5.5% year on year. @ Operating income: Increase of +2.0% year on year due to expenses for updating the core system in Japan. (Unit: 100 million yen) FYE Dec. 2023 FYE Dec. 2024 earl Net sales 3,325 3,510 +5.5% Operati
Slide 19: Operating Income Forecast
Operating Income Forecast Giico- (Unit: 100 million yen) FYE Dec. 2023 FYE Dec. 2024 Net sales 3,325 100.0% 3,510 100.0% Cost of sales 2,087 62.8% 2,158 61.5% Gross profit 1,238 37.2% 1,352 38.5% Freight and charges 261 7.9% 273 7.8% Sales promotion 108 3.3% 124 3.5% Advertising expenses 127 3.8% 14
Slide 20: Factors of Increases (Decreases) in Operating Income
Factors of Increases (Decreases) in Operating Income Glico 350 300 250 200 150 100 50 Domestic: Decrease due to an increase in depreciation expenses associated with system investments etc. despite sales growth and an improvement in the cost ratio. Overseas: Increase as a result of sales growth and a
Slide 21: ERP Core System Scheduled to Operate in the Current Fiscal Year
ERP Core System which is Scheduled to Operate in the Current Fiscal Year vi BA A Oo Ww Supplier Sales and Customer marketing Data and operations are connected from customers to suppliers ERP system investment amount: 34 billion yen (scheduled to operate in April 2024) -Purposes and effects: ¢ Realiz
Slide 22: Net Sales Forecast by Segment
Net Sales Forecast by Segment Glico m Domestic: Increase in all business, +3.3% year on year ™ Overseas: Increase in each region, +13.7% year on year (Unit: 100 million yen) FYE Dec. 2023 FYE Dec. 2024 Ch f Ts Total 3,325 3,510 +5.5% (Domestic) 2,613 2,700 +3.3% Health and Food Business 504 535 +5.9
Slide 23: Operating Income Forecast by Segment
Operating Income Forecast by Segment G%«- m Domestic: Decrease of -17.0% year on year due to an increase in depreciation expenses associated with the core system update. m™ Overseas: Increase of +68.0% year on year due to sales growth. (Unit: 100 million yen) FYE Dec. 2023 FYE Dec. 2024 | Results |
Slide 24: Overseas Business: Region-Specific Net Sales and Operating Income Forecast
Overseas Business: Region-Specific Net Sales and Operating Income Forecast @China (Unit: million CNY) Net sales 1,482 1,666 +12.4% Operating income 143 176 +23.2% @ ASEAN* (Unit: million USD) Net sales 123 148 +20.4% Operating income -10 (0) -% @U.S.A.** (Unit: million USD) Net sales 114 124 +9.0% O
Slide 25: III. Progress Report for the Mid-Term Business Plan
III. Progress Report for the Mid-Term Business Plan ©2024 Ezaki Glico Co., Ltd. All Rights Reserved 25
Slide 26: Progress Report for the Mid-Term Business Plan
Progress Report for the Mid-Term Business Plan # Outline of the Mid-Term Business Plan Offering “Great Realization of an evolved Transformation Taste and Good circular value chain toward focused Health” business fields ©2024 Ezaki Glico Co., Ltd. All Rights Reserved 26
Slide 27: Purpose and Vision
Purpose and Vision ™ Glico Group’s initiatives based on the Purpose Purpose Healthier days, Wellbeing for life Ww Vision (what we aim to deliver) Through the creative development of high-quality ingredients, the Glico Group provides "Great Taste and Good Health" for people to live satisfying lives.
Slide 28: Initiatives to Provide Food People Habitually Eat
Initiatives to Provide Food People Habitually Eat Gee m@ Provide “Great Taste” and "Good Health” value from three perspectives (research, materials and food culture) Make efforts to continuously increase net sales and income by evolving to “daily essential products people habitually eat” WwW Evolve
Slide 29: New Products with "Great Taste and Good Health" Unique to Glico
New Products with “Great Taste and Good Health” Which are Unique to Glico ©2024 Ezaki Glico Co., Ltd. All Rights Reserved Bifix 2 E2499AB-Fhr eae Coin PELOHESE BifiX apr cman 5 Tif BREAERANER4O%)LAYYFNGRAT. —— varune BB! FABROPELUBSEAIHRUDST, ~ N BROCE SHBADTRALTOBULEE lO0ZORAM N44 ATHARIOTO FUORI I
Slide 30: New Products with "Great Taste and Good Health" Peculiar to Glico
New Products with “Great Taste and Good Health” Which are Peculiar to Glico ©2024 Ezaki Glico Co., Ltd. All Rights Reserved 30
Slide 31: Mid-Term Business Plan: Progress
Mid-Term Business Plan: Progress (Rate of . Increase in Net Sales and Operating Income) Gice- m@ In the fiscal year 2023, net sales reached the Mid-Term Business Plan’s target, and operating income recovered. (Unit: 100 million yen) 2023 Mid-Term Business Plan Results | Results | Results Plan Net sa
Slide 32: To Improving ROE and PBR
To improving ROE and PBR Giico- m™ Continuously create products and businesses with higher value of “Great Taste and Good Health” which are unique to Glico and realize the mid- and long-term growth as a company that is absolutely necessary for daily life of customers. : Generate profits by creating
Slide 33: Supplemental Materials
*Supplemental Materials ©2024 Ezaki Glico Co., Ltd. All Rights Reserved 33
Slide 34: Net Sales by Category
Supplemental Materials Net Sales by Category Glico (Unit: 100 million yen) FYE Dec. 2022 FYE Dec. 2023 FYE Dec. 2024 Segment Classification Change from Jan. - Ep. =rml Jan. - Jan. - Jan. - Jan. - Jan. - Jan. - Syree previous Mar. Sep. Dec. Mar. Jun. Sep. Dec. pariorl Health and Ice Cream Food sresee
Slide 35: Status of Balance Sheet
Supplemental Materials Status of Balance Sheet pice @ Net worth ratio: 66.2% (end of December 2022) => 66.3% (end of December 2023) (Unit: 100 million yen) 4,000 End of End of chats : Assets: Major account items December December cate 2022 2023 period 3.500 Cash and deposits 917 971 +54 ’ il, 159 a
Slide 36: Status of Cash Flows
Supplemental Materials Status of Cash Flows Glico Cash flows from operating activities Cash flows from investing activities FCF (free cash flows) Cash flows from financing activities Cash and cash equivalents at end of year FYE Dec. 2019 Results 173 -90 980 FYE Dec. 2020 Results 172 -124 47 -97 924
Slide 37: Capital Expenditures, Depreciation, R&D Expenditures
Supplemental Materials Capital expenditures, Depreciation, R&D expenditures GYice- (Unit: 100 million yen) FYE Dec. 2024 Forecast Capital expenditures 165 183 122 System investments 69 70 61 6 Depreciation 142 138 140 170 R&D expenditures 50 51 59 66 || Revised Capital expenditures of FYE Dec. 2023
Slide 38: ESG Initiatives
Supplemental Materials ESG Initiatives Gpice- 1. Environmental initiatives + Announcement of the Glico Group Environmental Vision 2050 (March 2021). + Participation in joint procurement of cardboard base paper which is carried out by five food and beverage companies, aiming to improve production eff
Slide 39: TTM Currency Rate
Supplemental Materials TTM Currency Rate Glico USD EUR THB CNY 100KRW 100IDR 3/31 108.83 119.55 3.34 15.31 8.92 0.67 6/30 107.74 121.08 3.49 i15},243} 9.00 0.76 2020 9/30 105.80 124.17 3.34 15.54 9.08 0.72) 12/31 103.50 126.95 3.44 15.88 9.52 0.74 3/31 110.71 129.80 3.54 16.84 9.78 0.77 6/30 110.58
Slide 40: Notes of Caution
[Notes of caution] * Current Glico and Glico Group plans, forecasts, and initiatives indicated in these materials reflect determinations made based on information available at the present time. As such, this information may include major risks and uncertainties. Please note that actual performance m