Meiji Holdings Co., Ltd. · TSE:2269

Meiji — H1 FYE 2013/3 Earnings Presentation

32 slides from Meiji's earnings presentation, Nov 20, 2012

  1. Slide 1: Financial Results for the First Half of FYE 2013/3

    Financial Results for the First Half of FYE 2013/3 2012.11.20

  2. Slide 2: Contents

    Contents 1. FYE 2013/3 (First Half): Outline of Consolidated Financial Results 2. FYE 2013/3 (Full Year): Consolidated Financial Forecasts 3. For Achieving “ ” The forward-looking statements described in this material, such as business forecasts, are based on information available at the time of th

  3. Slide 3: FYE 2013/3 (First Half): Outline of Consolidated Financial Results

    1. FYE 2013/3 (First Half): Outline of Consolidated Financial Results | 2012.11.20 | Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved. 3

  4. Slide 4: Business Plan for FYE 2013/3

    HD (1) Business Plan for FYE 2013/3 (billions of yen) FYE 2012/3 FYE 2013/3 Results Initial plan Initial plan assumptions Meiji HD Net sales 1,109.2 1,125.0 Food Segment: Operating Business recovery (especially [consolidated] income 20.1 24.0 profits) from FYE 2012/3, which Ordinary was damaged by

  5. Slide 5: FYE 2013/3 Overview of 1H Results

    HD (2) FYE 2013/3 Overview of 1H Results  Consolidated net sales increased 2.4% YoY, in line with our plan  Food segment sales grew, as brisk sales in the dairy business offset declines in the healthcare and nutritionals business  Domestic ethical pharmaceuticals business grew YoY despite the imp

  6. Slide 6: Consolidated Results

    HD (3) Consolidated Results (billions of yen) 1H of FYE 2013/3 YoY change Change vs. plan*1 Results (Rate) (Amount) (Rate) (Amount) Net sales 561.2 +2.4% +13.1 +0.2% +1.2 Operating income 10.0 +35.5% +2.6 +25.6% +2.0 Ordinary income 11.7 +36.1% +3.1 +31.1% +2.7 Net income 5.2 +123.2% +2.9 +22.5% +0.

  7. Slide 7: Results by Segment

    HD (4) Results by Segment (billions of yen) 1H of FYE 2013/3 YoY change Change vs. plan*1 Results (Rate) (Amount) (Rate) (Amount) Net sales 503.9 +2.7% +13.3 +0.2% +0.8 Food Op. income 6.5 +147.0% +3.9 +2.8% +0.1 Pharma Net sales 58.4 -0.2% -0.1 -0.4% -0.2 Op. income 3.3 -23.4% -1.0 +136.4% +1.9  F

  8. Slide 8: Food Segment: Dairy

    Food (5) Food Segment: 1. Dairy (billions of yen) 1H of FYE 2013/3 YoY change Change vs. plan*1 Results (Rate) (Amount) (Rate) (Amount) Net sales 314.8 +7.7% +22.4 +2.9% +8.7 Dairy Op. income 9.2 +256.7% +6.6 +39.9% +2.6 (Dairy: Drinking milk, yogurt, beverages, cheese, butter, dairy products for pr

  9. Slide 9: Food Segment: Confectionery

    Food (5) Food Segment: 2. Confectionery (billions of yen) 1H of FYE 2013/3 YoY change Change vs. plan Results (Rate) (Amount) (Rate) (Amount) Confectionery Net sales 144.5 +1.4% +1.9 +0.7% +0.9 Op. income 0.6 -50.7% -0.6 -31.4% -0.3 (Confectionery: Chocolate, chewing gum, candy, imported confectione

  10. Slide 10: Food Segment: Healthcare & Nutritionals

    Food (5) Food Segment: 3. Healthcare & Nutritionals (billions of yen) 1H of FYE 2013/3 YoY change Change vs. plan Results (Rate) (Amount) (Rate) (Amount) Healthcare & Net sales 57.6 Nutritionals -3.3% -1.9 -4.8% -2.8 Op. income -1.0 ― -0.9 ― -1.0 (Healthcare & Nutritionals: Sports nutrition, functio

  11. Slide 11: Analysis of Operating Income (1H)

    HD (6) Analysis of Operating Income (1H) (billions of yen) 1H Results (By segment) Initial Food Pharma Other plan*1 FYE 2012/3 (1st Half) 7.4 2.6 4.3 0.5 7.4 Due to increased/decreased sales +10.9 (*2) +8.5 +2.4 ― +9.7 Cost reduction +1.4 (*3) +1.0 +0.4 ― +1.5 Sales promotion and advertising expense

  12. Slide 12: FYE 2013/3 (Full Year): Consolidated Financial Forecasts

    2. FYE 2013/3 (Full Year): Consolidated Financial Forecasts | 2012.11.20 | Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved. 12

  13. Slide 13: FYE 2013/3 Forecasts (Full year)

    HD FYE 2013/3 Forecasts (Full year)  Consolidated full year forecasts unchanged from our initial plan  Food Segment: ・Revised the dairy business up and the healthcare & nutritionals business down ・Overall food segment sales exceeded our initial plan by ¥800 million, and operating income by ¥200 mi

  14. Slide 14: Forecasts (2H/Full year)

    HD (1) Forecasts (2H/Full year) (billions of yen) FYE 2013/3 1H 2H Full year YoY Change vs. (Revised plan*2) Change vs. YoY Change vs. YoY change change initial plan*1 initial plan*1 change initial plan*1 +2.4% +0.2% +0.5% -0.2% +1.4% Net sales 561.2 (+13.1) (+1.2) 563.7 (+2.6) (-1.2) 1,125.0 (+15.7

  15. Slide 15: Forecasts by Segment (2H/Full year)

    HD (2) Forecasts by Segment (2H/Full year) (billions of yen) FYE 2013/3 1H 2H Full year Change vs. Change vs. YoY Change vs. YoY change (Revised plan*2) YoY change (Revised plan*2) initial plan*1 initial plan*1 change initial plan*1 Net +2.7% +0.2% +0.2% 0% +1.5% +0.1% sales 503.9 (+13.3) (+0.8) 496

  16. Slide 16: Food Segment: Plan (2H/Full year)

    Food (3) Food Segment: Plan (2H/Full year) (billions of yen) FYE 2013/3 1H 2H Full year Change vs. Change vs. Change vs. YoY change (Revised plan*2) YoY change (Revised plan*2) YoY change initial plan*1 initial plan*1 initial plan*1 Net +2.7% +0.2% +0.2% 0% +1.5% +0.1% 503.9 496.8 1,000.8 sales (+13

  17. Slide 17: Food Segment: Dairy (2H/Full year)

    Food (3) Food Segment: 1. Dairy (2H/Full year) (billions of yen) FYE 2013/3 1H 2H Full year Change vs. Change vs. Change vs. YoY change (Revised plan*2) YoY change (Revised plan*2) YoY change initial plan*1 initial plan*1 initial plan*1 Net +7.7% +2.9% -1.8% +1.0% +2.9% +2.0% 314.8 (+22.4) (+8.7) 29

  18. Slide 18: Food Segment: Confectionery (2H/Full year)

    Food (3) Food Segment: 2. Confectionery (2H/Full year) (billions of yen) FYE 2013/3 1H 2H Full year Change vs. Change vs. Change vs. YoY change (Revised plan*2) YoY change (Revised plan*2) YoY change initial plan*1 initial plan*1 initial plan*1 Net +1.4% +0.7% +1.3% -0.7% +1.3% 0% 144.5 (+1.9) (+0.9

  19. Slide 19: Food Segment: Healthcare & Nutritionals (2H/Full year)

    Food (3) Food Segment: 3. Healthcare & Nutritionals (2H/Full year) (billions of yen) FYE 2013/3 1H 2H Full year Change vs. Change vs. Change vs. YoY change (Revised plan*2) YoY change (Revised plan*2) YoY change initial plan*1 initial plan*1 initial plan*1 Net -3.3% -4.8% +6.9% -3.8% +1.7% -4.3% 57.

  20. Slide 20: Pharmaceuticals Segment: Plan (2H/Full year)

    Pharma (4) Pharmaceuticals Segment: Plan (2H/Full year) (billions of yen) FYE 2013/3 1H 2H Full year Change vs. Change vs. Change vs. YoY change (Revised plan*2) YoY change (Revised plan*2) YoY change initial plan*1 initial plan*1 initial plan*1 Net -0.2% -0.4% +2.5% -1.7% +1.3% -1.2% 58.4 68.3 126.

  21. Slide 21: Pharmaceuticals Segment: Plan (2H/Full year)

    Pharma (4) Pharmaceuticals Segment: Plan (2H/Full year) 2H initiatives 1. Ethical pharmaceuticals  Maintain favorable performance of “REFLEX” and “ORAPENEM”  Ensure solid traction of “OXIS TURBUHALER” for chronic obstructive pulmonary disease (COPD), which was launched in September  Expect strong

  22. Slide 22: Analysis of Consolidated Operating Income (Full year)

    HD (5) Analysis of Consolidated Operating Income (Full year) (billions of yen) Full year revised plan*2 (By segment) Initial Food Pharma Other plan*1 FYE 2012/3 20.1 11.4 8.1 0.6 20.1 Due to increased/decreased sales +17.9 +12.0 +5.9 ― +21.9 Cost reduction +3.3 +1.5 +1.8 ― +1.1 Sales promotion and a

  23. Slide 23: For Achieving TAKE OFF 14

    3. For Achieving “ ” | 2012.11.20 | Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved. 23

  24. Slide 24: Medium-Term Management Plan

    Medium-Term Management Plan Basic policies Targets Higher profitability and strategic investments for FYE 2015/3 future growth Net sales 1.19 trillion yen 1. Strengthen and expand existing businesses Op. income 40.0 billion yen (growth and priority businesses) ROE 7% 2. Foster growth businesses (new

  25. Slide 25: Food Segment: Business trend of yogurt

    Food Food Segment: 1. Business trend of yogurt Yogurt Net Sales and Market Size  The market is expected to (■Yogurt Net Sales: billions of yen) (◆Market Size: billions of yen) 140 350 continuously grow as people pay increasing attention to their health 120 300  We look forward sales of probiotic y

  26. Slide 26: Food Segment: Overseas expansion

    Food Food Segment: 2. Overseas expansion China The U.S.A Asia [Target: Overseas Net Sales] China Main Areas China Asia The U.S.A USA Confectioneries Confectioneries Asia Businesses to be Ice cream Dairy products Confectioneries strengthened Infant formula Infant formula Healthcare products Healthcar

  27. Slide 27: Food Segment: Overseas expansion in Asia and China

    Food Food Segment: 2. Overseas expansion in Asia and China Asia ▲Chocolate snacks; “Hello Panda” and “Yan Yan”  CP-Meiji Co., Ltd. (Thailand)  Meiji Seika (Singapore) Pte. Ltd. (equity-method affiliate) (consolidated)  2010 Established five-year plan  Produces and sells “Hello Panda” and  2015

  28. Slide 28: Pharmaceuticals Segment: Speciality and Generic

    Pharma Pharmaceuticals Segment: “Speciality and Generic”  Marketing strategy: “Fusion strategy” of speciality drugs & generics Speciality Generic  MR offers information on both speciality (new) drugs and generic drugs; proposals of Provision of information by MRs MEIACT Infectious diseases medicat

  29. Slide 29: Pharmaceuticals Segment: Expand generic drugs

    Pharma Pharmaceuticals Segment: Expand generic drugs Anticancer drugs, biosimilars [GE shares in domestic market / our GE sales] (■Our GE Sales: billions of yen) (◆GE shares in market: %) Blockbuster drugs 40 40 (drugs for lifestyle-related diseases, etc.) Sales of 42 constituents and 47 formulas ma

  30. Slide 30: Pharmaceuticals Segment: Overseas expansion

    Pharma Pharmaceuticals Segment: Overseas expansion  Achieve a global production structure with high profitability, and expand overseas sales in emerging markets [Russia] [Russia] Establish Advance Advance life-cycle life-cycle management management Establish business business foundation foundation

  31. Slide 31: Group's financial strategies

    ＨＤ Group’s financial strategies (billions of yen) FYE 2013/3 1H Full year YoY (Revised Plan) YoY change change Capital expenditures 14.5 -5.4 43.7 +7.7 161.7 Depreciation 18.0 -0.2 38.2 +0.3 126.5 Free cash flows 5.2 +21.7 3.0 +16.7 15.3 (operating cash flow portion) 19.8 +13.5 53.5 +22.9 170.5 Inte

  32. Slide 32: Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved.

    | 2012.11.20 | Copyright © 2012 Meiji Holdings Co., Ltd. All rights reserved. 32

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