Slide 1: Financial Results for the first half of fiscal year ending March 2018
Financial Results for the first half of fiscal year ending March 2018 FP Corporation November 13, 2017 FP Corporation ・
Slide 2: Cautions for Handling This Material
Cautions for Handling This Material We have paid extremely close attention to the information provided through presentations at this session and contained in the handouts. The forward-looking statements included in the information are our estimates based on the information available at the time of p
Slide 3: Table of Contents
= Table of Contents = Results and Plan Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami ... 4 For Expansion of Corporate Value President Morimasa Sato . . . 15 Supporting Data . . . 40 FP Corporation ・
Slide 4: Consolidated Financial Results
Consolidated Financial Results for the first half of the fiscal year ending March 2018 Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami FP Corporation 4・
Slide 5: Financial Results Summary
Financial Results Summary (Results for the first half of FY ending March 2018) Record high First half performance First half projections Full year projections FY ended March 2017 FY ending March 2018 FY ending March 2018 FY ending March 2018 ✔Highest sales and increase/ Year-on- progress progress Un
Slide 6: Increase/Decrease in Ordinary Profit
Increase/Decrease in Ordinary Profit (Results for the first half of FY ending March 2018) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Fiscal year ended March 2017 Unit: billion yen 前年 15.74 First half 7.91 Second half 7.83 Plan difference The Price of material －1.30 ＋0.30 Raw material 1.30 －0.10
Slide 7: Outlook for the Planned Ordinary Profit
Outlook for the Planned Ordinary Profit (Plan for the FY ending March 2018) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Fiscal year ended March 2017 前年 15.74 First half 7.91 Second half 7.83 Plan difference Plan difference The Price of material －1.70 ＋1.00 －1.30 －0.40 ＋0.30 ＋0.70 －0.70 (Eco APET
Slide 8: Capital Investments and R&D cost
Capital Investments and R&D cost (Results for the first half of FY ending March 2018) First half performance First half projections Full year projections FY ended March 2017 FY ending March 2018 FY ending March 2018 FY ending March 2018 Increase / Progress Progress Unit: million y en Performance Per
Slide 9: Balance Sheet
Balance Sheet (Results for the first half of FY ending March 2018) Previous consolidated First half of the consolidated fiscal year fiscal year FY ended March 2017 FY ended March 2018 Increase/ Year-on- Breakdown of main increases ( As of March 31,2017 ) ( As of September 30,2018 ) Unit: million yen
Slide 10: Cash Flows
Cash Flows (Results for the first half of FY ending March 2018) First half performance FY ended March 2017 FY ending March 2018 '18/3月期 Unit: million yen Performance Performance Breakdown of Main Items Income before income taxes 6,458 Depreciation 5,677 Increase in notes and accounts receivable - tr
Slide 11: Plan for the fiscal year ending March 2018
Plan for the fiscal year ending March 2018 FP Corporation ・
Slide 12: Outline of Plan for Account Settlement
Outline of Plan for Account Settlement (Plan for the FY ending March 2018 ) Results for Full year Full year projections First half projections FY ended March 2017 FY ending March 2018 FY ending March 2018 Unit:million yen Performance Percentage Planned Percentage Increase /decrease Year-on- year Pla
Slide 13: Planned Increase/Decrease in Ordinary Profit
Planned Increase/Decrease in Ordinary Profit (Plan for the FY ending March 2018 ) Unit: billion yen 1st half ¥7.91bn 2nd half ¥7.83bn 1st half 2nd half FY ended Mar. 2017 ¥15.74bn The Price of material ―2.7 -1.6 , -1.1 －１.２ Raw Materials －０.１ +0.4 , +2.2 ＋１.１ Sales Price (Naphtha Formula) +2.6 Origi
Slide 14: Planned Capital Investment and R&D Cost
Planned Capital Investment and R&D Cost (Plan for the FY ending March 2018 ) Results for Full year Full year projections First half projections FY ended March 2017 FY ending March 2018 FY ending March 2018 Unit : million y en Performance Planned Increase /decrease Year-on- year Planned Increase /dec
Slide 15: To Increase Corporate Value
To Increase Corporate Value President Morimasa Sato FP CORPORATION
Slide 16: Circumstances Surrounding the Retail Industry
Circumstances Surrounding the Retail Industry Social Conditions Reduced overtime work due to Labor shortage work-style innovation Increased labor Stagnant consumer spending expenses Retail Industry Increase the value of Improve workability in Shift to packaging merchandise stores outsourcing 16
Slide 17: Conditions of Convenience Stores and Supermarkets
Conditions of Convenience Stores and Supermarkets 103.0% Convenience Stores 102.0% Convenience 1st half of Sales remained strong 101.8% Stores 2017 thanks to the growth of the 101.0% home meal replacement market 100% 100.0% 99.8% Supermarkets 99.0% Increase in refrigerated shelves 98.0% Expansion of
Slide 18: Changes in the Number of Households
Changes in the Number of Households Total number of households One-person households + households of married couples only 2010 One-person households 2015 2020 Peak in 2019 2025 Peak in 2025 2030 Peak in 2030 Source: The graph was prepared by FPCO based on data from the National Institute of Populati
Slide 19: Accelerated Entry into Home Meal Replacement Market
Accelerated Entry into Home Meal Increase in Increase in Population one-person two-income Replacement Market households aging households Major food manufacturers Cooking at home Eating out Approx. 32 trillion yen Approx. 25 trillion yen Sales of original food => salads and ready-made food Improve ta
Slide 20: Arrival of Full-swing Fall-Winter Season for Microwavable Food Team
Arrival of Full-swing Fall-Winter Season for Microwavable Food Team For Prima Meat Packers, Ltd. Microwavable pot series MFP Doris Pot 19-18 (58) black MD Deria Foods Co., Ltd. Created original pot products by changing toppings Renji De Nabe (microwavable pots) series Seafood Chanko Nabe/pot Pork Jj
Slide 21: Shipments of Containers for Microwavable Products
Shipments of Containers for Microwavable Products Hot noodles Soups MFP noodle bowl MFP shallow MFP round noodle MFP Doris cup MFP round cup MFP deli soup noodle bowl plate Dishes Pots MFP rectangular MFP rectangular MFP hot deli MFP round pot MFP Doris pot deli plate deli 21
Slide 22: Worker-related Issues: Labor Shortage and Minimum Wage
Worker-related Issues: Work-style Innovation, Labor Shortage, and Increase in Minimum Wage Changes in diffusion index for excess or shortage of Changes in minimum wage (national average) employees at small- and medium-sized businesses 880 3 Retail 848 1 830 -1 823 Labor shortage -3 780 749 798 780 -
Slide 23: Use of Containers to Reduce Foodstuffs and Labor Expenses
Proposal for solutions Use of Containers to Reduce Foodstuffs and * Unit: Reduction per store per year Labor Expenses * Reduced expenses were calculated by FPCO. Good-fitting Good-fitting Containers with Containers with Patterned containers container closure container closure display stands oil stra
Slide 24: Container-Based Solutions for Fruit and Vegetables
Container-Based Solutions for Fruit and Vegetables New proposals for categories for which containers are yet to be used Cases delivered from markets Repacking at processing center Delivery to retailers Number of cases of vegetable and fruit containers shipped (1st half of FY2017): 124% year on year
Slide 25: Reduction of Losses in Fruit and Vegetable Sections Using Containers
Proposal for solutions Reduction of Losses in Fruit and Vegetable Sections Using Containers Consumer survey on product selection criteria Fruit and vegetables are also a category in which containers can be fully used. Left for about 2 days at room temperature Vegetables Fruits AP vegetable Box AP ve
Slide 26: Sales Shares of Original Products
Sales Shares of Original Products Conven-tional Conventional materials materials 1st half results (74% in the same period a year earlier) New products made of Plan for FY ending conven-tional materials* 77% March 2018 (52% in the same period a year earlier) Eco PSP 61% 54% Original Eco APET products
Slide 27: Investment in View of Social Issues
Management That Maximizes Ordinary Profit in Three Years Investment in View of Social Issues Results Plan 実績 計画 Six periods (billion 単位：億円 yen) 2012/3期 2012/3 2013/3期 2013/3 2014/3期 2014/3 2015/3期 2015/3 2016/3期 2016/3 2017/3期 2017/3 6期 total計 2018/3期 2018/3 累計 Total sum 製 造 Production 60 59 39 95
Slide 28: Completion of Kanto Eco PET Plant
Completion of Kanto Eco PET Plant Nationwide supply capacity of recycled PET raw material will be increased to 50,000 tons Location: Yachiyo, Yuki, Ibaraki Prefecture Investment: 15.7 billion Total floor area: 12,650 tsubo PET recycling lines: 2 lines VRV extrusion line: 1 line Vacuum pressure formi
Slide 29: Completion of Kanto Eco PET Plant: Recycled PET supply
Completion of Kanto Eco PET Plant Nationwide supply capacity of recycled PET raw material will be increased to 50,000 tons Virgin products Eco products Anti-dumping tax on imported PET plastics Improved demand-and-supply balance of used PET bottles in Japan Japan Containers Anti-dumping tax on impor
Slide 30: Eco APET and CO2 Reduction
Eco Tray CO2 Reduction Eco Tray CO2 reduction effect CO2 reduction effect Eco APET In FY ended March 2017, CO2 emissions were cut by 110,000 tons a year (Eco Tray: 45,000 tons / Eco APET 66,000 tons) Comparison between FPCO’s virgin products and eco products per kilogram <Trend in sales of eco produ
Slide 31: Diversity Management That Maximizes Abilities
Diversity Management That Maximizes Abilities Toyo Keizai, Inc. October 2017 Disabled employment ranking: 1st for 4 consecutive years Sorting centers: 7 in-house locations 1 location with a contractor ○ 10 locations 2 locations with business alliance partners ● FPCO Ai Pack Nishinomiya SC FPCO Ducks
Slide 32: Automation: Solution to the Labor Shortage
FPCO’s Solution to the Labor Shortage: Automation RSP Container Production Process Lamination 成形 Forming Cutting Packaging Remnants To recycling Film Heating Upper Mold Metal Detector Automated Raw material Film Lower Mold Blade Packaging Stacking in bags Packaging in cases Ejection Packaging in b
Slide 33: Automation: Labor saving of approx. 98 workers
FPCO’s Solution to Labor Shortage: Automation 21 8 22 4 Automated packing Automatic dusting Automatic case Case packing robots systems and packaging systems transport systems 3 units added 0 units added 13 units added 4 units added in FY ending Mar. 2018 in FY ending Mar. 2018 in FY ending Mar. 2018
Slide 34: Increased Efficiency and Accuracy of Delivery Using IT
Increased Efficiency and Accuracy of Delivery Using IT Route Planner RD Check System 102.7% 102.5% * FPCO Dia Foods is excluded. Improve load efficiency to reduce the number of trucks operated 8:07 Control increase in fares 7:31 (36 mins less) Reduce drivers’ working time 34
Slide 35: Increased Efficiency and Accuracy of Delivery Using IT
Increased Efficiency and Accuracy of Delivery Using IT Trend in load (in volume units*) for shipping sold items by truck Difference between scheduled delivery time and actual delivery time (* One volume unit equals nearly 0.28 cubic meters.) Load efficiency per truck improved Delivery accuracy impro
Slide 36: Introduction of Voice Picking to Increase Speed and Accuracy
Introduction of Voice Picking to Increase Speed and Accuracy Productivity with voice picking 728 units/hour Units per hour 300 Kansai Hachioji Kanto Ibaraki Fukuyama Chubu Kyushu Feb. Feb. Feb. May May May Nov. Dec. Jan. Jun. Aug. Sep. Jan. Jun. Aug. Sep. Mar. Oct. Nov. Dec. Nov. Jun. Aug. Apr. Mar.
Slide 37: To Increase Corporate Value
To Increase Corporate Value “We ensure that we deliver the best-quality products at competitive prices when they are needed.” Hardware Software Balance People We adhere to the FPCO-DNA and continue to make proposals with the foresight of the near future based on our workplace-oriented policy and cus
Slide 38: Aiming for Ordinary Profit of 20 Billion Yen
Aiming for Ordinary Profit of 20 Billion Yen >> Product Strategy >> Strategic Investments ＞ Grow the market of microwavable products ＞ Recycle terrestrial resources ― Propose deliciousness with the use of original products and inner trays ― Kanto Eco PET Plant: completed in August 2017 ＞ Increase pr
Slide 39: Raising Product Prices
Raising Product Prices FPCO Price increase announced in May 8% for PS and 6% for PET and PP shipped in and after June Increase advantages in the industry Raw material prices tend to decrease after the initial plan for the fiscal year Ensure medium- to long-term profit The price increase for the incr
Slide 40: Supporting Data
Supporting Data FP Corporation ・
Slide 41: Raw Material Trends
Raw Material Trends FY ended Mar 2016 No obvious price competition FY ended Mar 2014 Even with companies announcing revised FY ended Mar 2015 Prices revised in line with naphtha in prices, other companies increased Other companies again announced some cases volumes revised prices Continued
Slide 42: World's First Sheets and Materials
World’s First Sheets and Materials Evolution from a sheet processing manufacturer PP: polypropylene PS: polystyrene PSP: foamed polystyrene Easy to mold Heat-resistant: +110ºC Low raw material ratio High oil resistance Weight reduction is possible Foam is hard and resistant to High ins
Slide 43: Boosting the production capacity of original products
Capital Investment > Products 49.4 billion yen invested in manufacturing over a six-year period Boosting the production capacity of original products 2010 2011 2012 2013 2014 2015 2016 2017 MFP Sales for 2017/3: 13.5 billion Feb. 2010: Market release of the Multi FP (MFP) (up 33.1% year on year) Feb
Slide 44: Factors influencing Ordinary Profit
Factors influencing Ordinary Profit Unit:100 million yen '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 Plan '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full half half ye
Slide 45: Trends in Capital Investment and R&D Costs
Trends in Capital Investment and R&D Costs FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ending FY ending 2003 2004 2005 2006 2007 20
Slide 46: Initiatives to Market Agricultural Products and Goods
Initiatives to Market Products Market size: ¥500 billion Goods Market size: Over ¥2.5 trillion Containers for simple packaging Supplies and packaging materials/equipment In stores Packaging outside stores Retail / Ready-made Meals / Restaurant Dining Agricultural Processed Fresh fish Livestock Prepa
Slide 47: Information on the Facility Tour
【 Information on the Facility Tour 】 Contact: Takashima at the Corporate Planning Department (TEL)+81-3-5325-7756 (MAIL)ir_7947@fpco-net.co.jp at a convenient time for you. An opportunity to take a look at the state-of-the-art Production, Distribution, Recycling operations Kanto 30 minutes from Koga