Ezaki Glico Co., Ltd. · TSE:2206

Ezaki Glico — FY2024 Earnings Presentation

45 slides from Ezaki Glico's earnings presentation, Feb 13, 2025

  1. Slide 1: Healthier days, Wellbeing for life

    Healthier days, Wellbeing for life [Notes of caution] 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. Ezaki Glico Co., Ltd. Securities

  2. Slide 2: Contents

    Contents Ⅰ. FYE December 2024 Earnings P.3-16 Report Ⅱ. FYE December 2025 Earnings P.17-23 Forecast Ⅲ. Mid-Term Management Plan P.24-38 *Supplemental Materials P.39-44 ©2025 Ezaki Glico Co., Ltd. All Rights Reserved 2

  3. Slide 3: FYE December 2024 Earnings Report

    Ⅰ. FYE December 2024 Earnings Report ©2025 Ezaki Glico Co., Ltd. All Rights Reserved 3

  4. Slide 4: Summary for the FYE December 2024

    Summary for the FYE December 2024 m™ Net sales: Decreased due to impact of suspension of chilled product shipments, down 0.4% year on year ™ Operating income: Decreased in domestic business, but increased in overseas business, down 40.6% year on year in total business @ Net sales: 370 billion yen (I

  5. Slide 5: Status of Consolidated Performance

    Status of Consolidated Performance Glico m Net sales: Decreased due to impact of suspension of chilled product shipments, down 0.4% year on year @ Operating income: Decreased in domestic business, but increased in overseas business, down 40.6% year on year in total business (Unit: 100 million yen) F

  6. Slide 6: Status of Operating Income

    Status of Operating Income Gpico- (Unit: 100 million yen) FYE Dec. 2023 FYE Dec. 2024 Net sales 3,325 100.0% 3,311 100.0% Cost of sales 2,087 62.8% 2,034 61.4% Gross profit 1,238 37.2% 1,276 38.6% Freight and charges 261 7.9% 272 8.2% Sales promotion 108 3.3% 116 3.5% Advertising expenses 127 3.8% 1

  7. Slide 7: Factors of Increases (Decreases) in Operating Income

    Factors of Increases (Decreases) in Operating Income Grice m@ Domestic: Decreased due to a decrease in net sales and an increase in raw material prices and SG&A despite an increase from other changes in cost of sales. ™ Overseas: Increased due to an increase in net sales and other changes in cost of

  8. Slide 8: Status of Net Sales by Segment

    Status of Net Sales by Segment Gpico- m Domestic: Decreased in the businesses which contain a high proportion of chilled products, -4.8% year on year m™ Overseas: Increased mainly in China, etc., +15.6% year on year (Unit: 100 million yen) FYE Dec. 2023 FYE Dec. 2024 scnange om Total 3,325 3,311 -0.

  9. Slide 9: Status of Operating Income by Segment

    Status of Operating Income by Segment G** m Domestic: Decreased mainly due to a decrease in net sales in the Dairy Business, -81.5% year on year ™ Overseas: Increased mainly due to an increase in net sales in China among other factors, +101.4% year on year (Unit: 100 million yen) FYE Dec. 2023 FYE D

  10. Slide 10: By Segment: Health and Food Business

    By Segment: Health and Food Business @ Main brands in the Health and Food Business segment: "Almond Koka,” “SUNAO,” “PAPICO,” “Ice no mi,” “DONBURI-TEI” m™ Segment net sales: Decreased, -7.6% year on year to 46.6 billion yen m Segment income: Decreased, -2.2 billion yen year on year to -0.1 billion

  11. 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: Decreased, -19.5% year on year to 56.0 billion yen m Segment income: Decreased, -6.8 billion yen year on year to -6.3 billion yen —

  12. Slide 12: By Segment: Nutritional Confectionery Business

    By Segment: Nutritional Confectionery Business G%<*- @ Main brands in this segment: = “Pocky,” “Bisco,” “Pretz,” “Caplico” Chocolate Market (Intage SRI +) m Segment net sales: Increased, +4.6% year on year to Unit: 100 million yen 64.7 billion yen man won m Segment income: Decreased, -1.3 billion ye

  13. Slide 13: By Segment: Overseas Business

    By Segment: Overseas Business China (Unit: million CNY) Net sales 1,482 1,871 +26.3% Operating income 143 228 +59.5% @ASEAN* (Unit: million USD) Net sales 128 130 +1.4% Operating income -10 O _ @U.S.A. ** (Unit: million USD) Net sales 114 101 -11.2% Operating income 21 23 +12.4% ©2025 Ezaki Glico Co

  14. Slide 14: By Segment: Overseas Business (China)

    By Segment: Overseas Business (China) Glico @ Market environment: Biscuit Market (offline) declined -9.0% year on year. @ Net sales: 1,871 million CNY based on shipments and local currencies. Increase of +26.3% year on year. ™ Operating income: 228 million CNY. Increase of +59.5% year on year. m™ By

  15. Slide 15: By Segment: Overseas Business (ASEAN)

    By Segment: Overseas Business (ASEAN) @#<*- m@ Market environment: Biscuit Market grew +9.3% year on year in Thailand and +6.8% year on year in Indonesia. @ Net sales: 130 million USD based on shipments and local currencies, an increase of 1.4% year on year ™ Operating income: 540,000 USD, and incre

  16. Slide 16: By Segment: Overseas Business (U.S.A.)

    By Segment: Overseas Business (U.S.A.) ie @ Market environment: Chocolate Market declined -0.3% year on year @ Net sales: 101 million USD based on shipments and local currencies, a decrease of 11.2% year on year @ Operating income: 23 million USD, an increase of +12.4% year on year m@ By product: De

  17. Slide 17: FYE December 2025 Earnings Forecast

    Ⅱ. FYE December 2025 Earnings Forecast ©2025 Ezaki Glico Co., Ltd. All Rights Reserved 17

  18. Slide 18: Consolidated Performance Forecast

    Consolidated Performance Forecast Glico @ Net sales: 370 billion yen, an increase of 11.7% year on year @ Operating income: 18 billion yen, an increase of 62.7% year on year (Unit: 100 million yen) FYE Dec. 2024 FYE Dec. 2025 fects] Forecast | orev prio Net sales 3,311 3,700 +11.7% Operating income

  19. Slide 19: Operating Income Forecast

    Operating Income Forecast Gpico- (Unit: 100 million yen) FYE Dec. 2024 FYE Dec. 2025 Net sales 3,311 100.0% 3,700 100.0% Cost of sales 2,034 61.4% 2,256 61.0% Gross profit 1,276 38.6% 1,444 39.0% Freight and charges 272 8.2% 287 7.8% Sales promotion 116 3.5% 123 3.3% Advertising expenses 158 4.8% 18

  20. Slide 20: Factors of Increases (Decreases) in Operating Income

    Factors of Increases (Decreases) in Operating Income Giice m Domestic:Increased due to an increase in chilled products net sales, despite an increase from raw material prices and SG&A ™ Overseas:Increased due to an increase in net sales, etc. miIncrease mDecrease (Unit: 100 million yen) 300 250 7 Ss

  21. Slide 21: Net Sales Forecast by Segment

    Net Sales Forecast by Segment Gpico m Domestic: Increase of 12.1% year on year due to resumption of shipments of chilled products and strengthening of initiatives for value creation/enhancement products ™ Overseas: Increase of 10.5% year on year due to increased customer touch points in China, ASEAN

  22. Slide 22: Operating Income Forecast by Segment

    Operating Income Forecast by Segment G* m Domestic: Increase of 5.7 billion yen year on year due to increase in sales and improved profitability resulting from improvement of chilled products and launch of value creation/enhancement products ™ Overseas: Increase of 1.2 billion yen year on year due t

  23. Slide 23: Overseas Business: Net Sales and Operating Income Forecast

    Overseas Business: Net Sales and Operating Income Forecast @China (Unit: million CNY) Net sales 1,871 2,030 +8.5% Operating income 228 260 +13.9% @ ASEAN* (Unit: million USD) Net sales 124 139 +12.2% Operating income 0 1 +114.9% U.S.A. ** (Unit: million USD) Net sales 101 105 +4.4% Operating income

  24. Slide 24: Mid-Term Management Plan

    Ⅲ. Mid-Term Management Plan ©2025 Ezaki Glico Co., Ltd. All Rights Reserved 24

  25. Slide 25: Mid-term Management Plan [Acceleration Phase: FY25-27]

    Healthier days, Wellbeing for life e [Notes of caution] 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. Mid-term Management Plan [Acce

  26. Slide 26: Outline of the Purpose and the Long-term Management Plan

    1. Outline of the Purpose and the Long-term Management Plan Glico PURPOSE Healthier days, Wellbeing for life Long-term Strategy Business plan = Launch products that can provide . “Great Taste and Good Health” based on scientific evidence Z = Build a consumer-driven value chain globally = Make a tran

  27. Slide 27: Positioning of Value Creation and Improvement in the Mid-term Plan

    1. Positioning of Value Creation and Improvement in the Mid-term Management Plan Healthier days, Wellbeing for life Mid-term Management Plan Value Creation Business Impact Business strate: Acquisition of R&D strategy hew consumers Value Human resources creation strategy Increase in the frequency of

  28. Slide 28: Review of the Previous Mid-term Management Plan (1)

    2. Review of the Previous Mid-term Management Plan [FY22-24] (1) GNice- CAGR (Compound average growth rate) * Compared to FY21 (Unit: 100 million yen) = Net sales: +4.2% 3,500 3,314 350 (+3-5% per year) 3,039 ages i i = Operating income:-17.0% #1000 i _e - (+5-10% per year) > S00 ” —FY24: Net sales

  29. Slide 29: Review of the Previous Mid-term Management Plan (2)

    2. Review of the Previous Mid-term Management Plan [FY22-24] (2) GNice- Transformation of domestic business = Transitioned from category management to business unit management = Promoted creation of health value peculiar to Glico from three standpoints (R&D, materials and food culture) for five focu

  30. Slide 30: Review of the Previous Mid-term Management Plan (3)

    2. Review of the Previous Mid-term Management Plan [FY22-24] (3) Gdico- Proactively invested to achieve growth while providing stable returns to shareholders in line with profit growth Operating cash flow @ FY22: 16.8 billion yen @ FY23: 28.0 billion yen @ FY24: 1.8 billion yen Cash on hand for cash

  31. Slide 31: Analysis of Market's Evaluation and Capital Profitability

    3. Analysis of Market's Evaluation and Capital Profitability Gdico- Recognition of current situation about capital costs = Cost of shareholders’ equity: Assumed at 5.8% ~ 4-6% co% 3:6% 56% 5, ao 5.6% + WACC: 3.69-5.29% 5.0% ds . Cost of shareholders’ equity: 4-6% + CAPM: 5.27-5.29% on (estimate) 7 -

  32. Slide 32: Outline of the New Mid-term Management Plan [FY25-27]

    4. Outline of the New Mid-term Management Plan [FY25-27] Gdico- Accelerate profit generation by creating value and aim to achieve ROE of 6-8% FY25-27: 6-8% ROE FY28-30: Aim to further improve Net sales / Operating Net sales: +5-10% income Operating income: +10-15% (annual growth rate, v Improve prof

  33. Slide 33: Basic Strategy

    4-1. Basic Strategy : Business @ strategy R&D Q| strategy 5 Human ect} resources strategy Overall strategy Capital policy ©2025 Ezaki Glico Co., Ltd. All Rights Reserved Acceleration of value creation and evolution of the consumer-driven business model utilizing digital and AI technologies Accelerat

  34. Slide 34: Strategies of Major Businesses (Domestic)

    4-2. Strategies of Major Businesses (Domestic) G22 Business ® Acceleration of value creation and evolution of the consumer-driven business model utilizing digital and AI technologies W/ strategy ® Re-establishment of the business value chain starting from ingredients (milk, cacao, F and almonds) (Do

  35. Slide 35: Strategies of Major Businesses (Overseas)

    4-3. Strategies of Major Businesses (Overseas) G&%<*- Business (5 strategy (Overseas) —— KPI ® Acceleration of brand growth in countries with our establishments (“Pocky,” “BISCO” and “Almond Koka”) ® Acceleration of sales growth and profits improvement in China and ASEAN ® Establishment of the busin

  36. Slide 36: R&D Strategy

    4-4. R&D Strategy Glico Q R&D = Re-establishment of the R&D portfolio and investment prioritization = Design of operation process that directly links R&D themes to business issues strategy = Reinforcement of the driving force of the entire R&D division to translate R&D strategies into results Design

  37. Slide 37: Human Resources Strategy

    4-5. Human Resources Strategy a ° Human @ Establishment of a company-wide mechanism to link intrinsic motivation to outcome ah resources @ Reinforcement of human resource skills and portfolio @ Establishment of a system to increase the effectiveness of the human capital st rategy strategy purpose He

  38. Slide 38: Capital Policy (Cash Flow Allocation)

    4-6. Capital Policy (Cash Flow Allocation) Giico- Enhance growth investment focusing on foreign countries Ordinary investment 30 billion yen Operating Operating cash flow cash flow 95-100 billion yen (3 years) 95-100 ; Growth billion yen investment y 45-50 billion yen Reduction in assets L Return to

  39. Slide 39: Supplemental Materials

    *Supplemental Materials ©2025 Ezaki Glico Co., Ltd. All Rights Reserved 39

  40. Slide 40: Supplemental Materials: Net Sales by Category

    Supplemental Materials Net Sales by Category Glico Segment Classification Jan. - Mar. Jan. - Jun. Jan. — Sep. Jan. - Dec.|Jan. — Mar. Jan. - Jun.Jan. - Sep.Jan. - Dec. | Health 28 | Health and Ice Cream 26 i Food Business: Other 39 | Total oe oa FYE Dec. 2023 “176 38. 119 391 | 209 504 168 I FYE Dec

  41. Slide 41: Supplemental Materials: Status of Balance Sheet

    Supplemental Materials Status of Balance Sheet Glico 4,000 3,500 1,159 3,000 1,884 2,500 2,000 1,500 1,000 500 0 End of December 2023 m Net assets Current liabilities m= Non-current assets Current assets ©2025 Ezaki Glico Co., Ltd. All Rights Reserved Current assets assets Non-current Assets: Major

  42. Slide 42: Supplemental Materials: 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. 2020 Results 172 -124 47 -97 924 FYE Dec. 2021 Results 286 FYE Dec.

  43. Slide 43: Capital Expenditures, Depreciation, R&D Expenditures

    Supplemental Materials Capital expend itures, Depreciation, R&D expenditures G2<e- (Unit: 100 million yen) FYE Dec. FYE Dec. FYE Dec. FYE Dec. 2022 2023 2024 2025 Results Results Results Forecast Capital expenditures 183 118 106 121) System investments 70 61 66 20 Depreciation 138 140 167 180 R&D ex

  44. Slide 44: TTM Currency Rate

    Supplemental Materials TTM Currency Rate Gice 100KRW | 100IDR 3/31 110.71 129.80 3.54 16.84 9.78 0.77 6/30 110.58 131.58 3.44 17.11 9.78 0.77 2021 9/30 111.42 129.11 3.26 17.15 9.37 0.73) 12/31 115.02 130.51 3.43 18.06 9.73 0.84) 3/31 122.39 136.70 3.68 19.26 10.13 0.86 6/30 136.68 142.67 3.85 20.38

  45. Slide 45: 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

Ezaki Glico — FY2024 Earnings Presentation on 6ix