Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — FY2019 Earnings Presentation
34 slides from Nissin Foods's earnings presentation, May 13, 2019
Slide 1: Consolidated Results for FY2019
Consolidated Results for FY2019 (Fiscal Year Ended March 31, 2019) Announced on May 9, 2019 This material was released on May 13, 2019 for the results briefing. Stock Code: 2897
Slide 2: FY2019 Business Report, FY2020 Business Plan
FY2019 Business Report FY2020 Business Plan Director, CFO, and Managing Executive Officer Yukio Yokoyama
Slide 3: Executive Summary
2 Executive Summary Aim to make a further leap forward in the milestone year of the 60th anniversary of the birth of instant noodles! Domestic: “Heat up” the Japanese market through the strong enhancement of long-selling brands FY2019 - Aim to maximize sales by enhancing products that will celebrate
Slide 4: Summary of FY2019 Financial Results
3 FY2019 Summary of FY2019 Financial Results (bil. Yen) FY2019 FY2019 FY2018 Results Vs. Plan YoY Change Plan Results Revenue 451.0 -4.0 -0.9% +10.1 +2.3% 455.0 440.9 Operating profit 29.0 -7.0 -19.5% -6.2 -17.6% 36.0 35.2 Profit attributable to owners of 19.4 -6.6 -25.6% -9.8 -33.6% 26.0 29.1 paren
Slide 5: FY2019 Revenue Results by Segment
4 FY2019 Revenue Results by Segment (bil. Yen) FY2019 FY2019 FY2018 Results Vs. Plan YoY Change Plan Results Instant noodles 226.1 -1.4 -0.6% +4.0 +1.8% 227.5 222.1 NISSIN FOOD PRODUCTS 193.3 -1.7 -0.9% +2.3 +1.2% 195.0 191.0 MYOJO FOODS 32.9 +0.4 +1.2% +1.7 +5.6% 32.5 31.2 Chilled and frozen foods
Slide 6: FY2019 Revenue Contribution by Segment
5 FY2019 Revenue Contribution by Segment Impact Major Factor (bil. Yen) NISSIN Cup-type (+1%): “CUP NOODLE” and “DONBEI” achieved record-high sales. Bag-type (+6%): Revenue was driven by the “CHICKEN RAMEN” brand, which marked its 60th FOOD +2.3 anniversary, and the “OWAN” series contributed to reve
Slide 7: FY2019 Operating Profit Results by Segment
6 FY2019 Operating Profit Results by Segment (bil. Yen) FY2019 FY2019 FY2018 Results Vs. Plan YoY Change Plan Results Instant noodles 25.7 -1.6 -5.7% -0.1 -0.3% 27.3 25.8 NISSIN FOOD PRODUCTS 23.7 -1.6 -6.3% -0.2 -0.8% 25.3 23.9 MYOJO FOODS 2.0 +0.0 +2.1% +0.1 +6.0% 2.0 1.9 Chilled and frozen foods
Slide 8: Operating Profit Contribution by Segment FY2019
7 FY2019 Operating Profit Contribution by Segment (bil. Yen) Impact Major Factor NISSIN +: Impact of non-recurring income (+3.9), increase in revenue, reduction in general FY2018 Operating profit 35.2 FOOD -0.2 administrative expenses and advertising expenses -: Increase in depreciation (including K
Slide 9: Major Factors for Difference in Operating Profit FY2019
Major Factors for Difference in Operating Profit 8 FY2019 (Impact of Non-Recurring Income and Expenses) (bil. Yen) Difference in non- FY2019 FY2018 Difference in recurring income Main items of non-recurring income and expenses Results Results operating profit and expenses NISSIN FOOD 23.7 23.9 -0.2
Slide 10: FY2019 Analysis of Operating Profit: Consolidated
9 FY2019 Analysis of Operating Profit: Consolidated (Domestic / Overseas) YoY change (bil. Yen) Domestic Decrease factors Increase factors CoGS ratio - Increased raw material costs (-1.9), etc. A: Revenue +1.1 Distribution cost ratio Increase/decrease of marginal profit (Domestic) (Effect of ded
Slide 11: FY2020 Management Policy
10 FY2020 Management Policy Steadily implement measures in response to changing market environment and work to strengthen profitability Domestic: - Seek to stabilize earnings base by hitting back at headwind of higher costs with price revisions. - Aim to expand revenues and profits through highly un
Slide 12: FY2020 Business Plan Summary
11 FY2020 Business Plan Summary (bil. Yen) FY2020 FY2019 Plan YoY Change Results Revenue 465.0 +14.0 +3.1% 451.0 Main factors behind higher costs Factors Operating profit 37.0 +8.0 +27.7% 29.0 Increased Increased wheat, cardboard material prices boxes, and seafood, etc. (+1.7) Profit attributable
Slide 13: FY2020 Revenue Plan by Segment
12 FY2020 Revenue Plan by Segment (bil. Yen) FY2020 FY2019 Plan YoY Change Results Instant noodles 234.0 +7.9 +3.5% 226.1 NISSIN FOOD PRODUCTS 200.0 +6.7 +3.5% 193.3 MYOJO FOODS 34.0 +1.1 +3.4% 32.9 Chilled and frozen foods 57.0 +1.6 +2.8% 55.4 Confectionery and beverages 43.0 +0.8 +1.9% 42.2 Domest
Slide 14: FY2020 Operating Profit Plan by Segment
13 FY2020 Operating Profit Plan by Segment (bil. Yen) FY2020 FY2019 Plan YoY Change Results Instant Noodles 27.1 +1.4 +5.3% 25.7 NISSIN FOOD PRODUCTS 25.0 +1.3 +5.5% 23.7 MYOJO FOODS 2.1 +0.1 +2.9% 2.0 Chilled and frozen foods 2.0 +0.5 +30.3% 1.5 Confectionery and beverages 2.6 +0.1 +5.3% 2.5 Domest
Slide 15: Major Factors for Difference in Operating Profit FY2020
Major Factors for Difference in Operating Profit 14 FY2020 (Impact of Non-Recurring Income and Losses) (bil. Yen) Difference in non- FY2020 FY2019 Difference in recurring income Main items of non-recurring income and expenses Plan Results operating profit and expenses NISSIN FOOD 25.0 23.7 +1.3 -0.1
Slide 16: FY2020 Investment Plan, and Financial and Capital Policies (1)
15 FY2020 Investment Plan, and Financial and Capital Policies (1) Capital Investment FY2017 FY2018 FY2019 FY2020 (bil. Yen) 5-Year Plan Results Results Results Plan Domestic Capital - Investment aimed at saving labor and strengthening 150.0 36.3 52.0 57.6 49.2 Investment safety/security management
Slide 17: FY2020 Investment Plan, and Financial and Capital Policies (2)
16 FY2020 Investment Plan, and Financial and Capital Policies (2) Shareholder Returns (Dividends) Dividend increase reflecting favorable financial performance, with an aim for achieving average payout ratio of 40% or above. ☝ FY2018 1H: 45 yen, Year-end: 45 yen, Total: 90 yen 5-Year FY2017 FY2018
Slide 18: Medium-Term Business Plan 2021 Interim Review and Future Outlook
Medium-Term Business Plan 2021 Interim Review and Future Outlook Representative Director, President and CEO Koki Ando
Slide 19: Mid-term Plan Review of FY2021 Targets
18 Mid-term Plan Review of FY2021 Targets • Mainly revision to reflect actual situation of overseas business and went outside the M&A budget. Revised Mid-term Plan KPIs Before review After review Earning Revenue 550.0 bil. Yen 480.0 bil. Yen power through operations Operating profit 47.5 bil. Yen 42
Slide 20: Mid-term Plan Review of Targets by Segment
19 Mid-term Plan Review of Targets by Segment • In light of changes in the business environment and the issues of each region/business, we have revised segment targets. FY2021 Targets for Domestic Business FY2021 Targets for Overseas Business (bil. Yen) Before review After review (bil. Yen) Before r
Slide 21: Mid-term Plan Regarding Market Capitalization of JPY 1 Trillion
20 Mid-term Plan Regarding Market Capitalization of JPY 1 Trillion • The Group will steadily aim for market capitalization of JPY 1 trillion as a target to be achieved along the way regardless of timing. • The Group will aim for improvement of corporate value by focusing on initiatives from a CSV pe
Slide 22: Mid-term Plan Review of Five Key Themes
21 Mid-term Plan Review of Five Key Themes Initial FY2021 Strategic Theme Target FY2019 Results FY2021 Forecast Comments Overall progress was slightly slow partly due to 1 the impact of price revisions in U.S. business. Promoting Up 50% Growth in Brazil and Asia is expected. global branding for
Slide 23: Mid-term Plan Review of Investment and Future Policy
22 Mid-term Plan Review of Investment, etc. and Future Policy Bil. yen Initial plan FY2019 FY2021 Business 100.0 bil. yen 23.5 bil. Yen (Major investments) – investment over 5 years over 3 years Investment in Premier Foods, investment in Thai President Foods (Reasons for extra investment) Capital 15
Slide 24: Mid-term Plan Issues and Policies by Region/Business
23 Mid-term Plan Issues and Policies by Region/Business • Moving forward, we will continue to implement the policy of promoting global branding. At the same time, we will address specific issues according to the competition environment and market characteristics and make sure that we establish an or
Slide 25: Other Initiatives: Realization of a Sturdier Management Structure
Other Initiatives: 24 Mid-term Plan For Realization of a Sturdier Management Structure • Shift to sturdier management structure that will allow us to focus on our core operations, through initiatives in response to DX Initiatives already implemented New future initiatives Achievement of Smartwork 20
Slide 26: Initiatives to Enhance Corporate Value (1)
25 Mid-term Plan Initiatives to Enhance Corporate Value (1) • Initiatives to enhance corporate value for sustainable growth International reputation Evaluation of empowerment of women Selected as “Semi-Nadeshiko Brand” in the Selected as a component of the “Nadeshiko” initiative run by the Ministry
Slide 27: Initiatives to Enhance Corporate Value (2)
26 Mid-term Plan Initiatives to Enhance Corporate Value (2) • Set value creation process to realize NISSIN Group philosophy • Connect our value creation process with SDGs Our impacts on society (examples) We help give people equal access to safe food and reduce poverty in disaster-stricken areas by
Slide 28: APPENDIX
27 APPENDIX
Slide 29: FY2020 Domestic Business: Policy and Activities by Segment (1)
28 FY2020 Domestic Business: Policy and Activities by Segment (1) NISSIN FOOD PRODUCTS Generate cash and enhance profitability [CUP NOODLE] Acquiring new users and demand by expanding product lineup Strive to become a Century Brand Company • Actively target three strategic groups: young consumers,
Slide 30: FY2020 Domestic Business: Policy and Activities by Segment (2)
29 FY2020 Domestic Business: Policy and Activities by Segment (2) Chilled and frozen foods/Confectionery and Beverages NISSIN CHILLED FOODS NISSIN FROZEN FOODS • Strengthen noodles genre, which is core domain and has high profit • Increase strength of single items by strengthening brand margins
Slide 31: FY2020 Overseas Business: Policy and Activities by Segment (1)
30 FY2020 Overseas Business: Policy and Activities by Segment (1) The Americas Mexico U.S. • Offer new flavors under the “CUP NOODLES” and • Improve earnings structure “U.F.O.” brands • Reap benefits from penetration of price revisions • Strengthen brand recognition targeting young consumers • I
Slide 32: FY2020 Overseas Business: Policy and Activities by Segment (2)
31 FY2020 Overseas Business: Policy and Activities by Segment (2) Asia India Thailand • Actively pursue an expansion in sales of “CUP NOODLES” to • Expand sales of differentiated added value products such as further strengthen the position as leader in the cup-type “CUP NOODLES” noodles market •
Slide 33: FY2020 Overseas Business: Policy and Activities by Segment (3)
32 FY2020 Overseas Business: Policy and Activities by Segment (3) EMEA Europe • Actively roll out NB and OEM products in key markets in Germany and the UK. • Roll out and enhance marketing under the concept of Authentic Asia. • Strive to obtain the No.1 position in “CUP NOODLES”and “Soba” at Asian
Slide 34: Information in this material is not intended to solicit sales or purchase of NISSIN
Information in this material is not intended to solicit sales or purchase of NISSIN FOODS HOLDINGS stock shares. The comments and estimates in this document are based on the company’s judgment at the time of publication and their accuracy is not guaranteed. They are subject to change without notice