Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — Nissin Food Products — H1 FY2008 Earnings Presentation
18 slides from Nissin Foods's earnings presentation, Oct 31, 2007
Slide 1: Nissin Food Products Co., Ltd.
LNISSIN] NISSIN FOOD PRODUCTS CoO., LTD.
Slide 2: Slide 2
Slide 3: Business Environments in First Half of FY2008
Consolidated Results for the Interim Period Ended September 30, 2007 (Interim FY2008) October 31, 2007 (2897)2897 Code Number 1 Business Environments in First Half of FY2008 External Environment Substantial increases in the cost of materials, including wheat, palm oil and crude oil Countermeasure: P
Slide 4: Overview of Consolidated Results for Interim FY2008
Overview of Consolidated Results for Interim FY2008 (¥ Billion) Change Interim FY2007 Interim FY2008 Amount % Net Sales 152.5 189.7 37.2 24.4 Operating Income 14.1 11.3 (2.8) (19.7) Ordinary Income 16.3 14.5 (1.8) (10.8) Net Income 9.5 5.5 (4.0) (42.1) Exchange Rate ¥/US$ 115.24 123.26 Exchange Rate
Slide 5: Cup-type Instant Noodles; Chilled and Frozen Foods
Cup-type Instant Noodles (Consolidated) Cup-type Instant Noodles Division Net Sales 120 (¥ Billion) Strong sales of Nissin Yakisoba U.F.O. (pan-fried cup noodles) and IPPEI-CHAN YOMISE NO YAKISOBA range 100 Solid launch of Nissin Yakisoba U.F.O. NEXT GENERATION (microwavable pan-fried noodles) 80 11
Slide 6: Other Business; Breakdown of Operating Income
Other Business (Consolidated) Other Business Division Net Sales 20 (¥ Billion) Nissin Cisco (flagship product: Ciscorn Big cereal) and Nissin York 17 (flagship product: Pilkul lactobacillus beverage) both achieving sustained sales growth 14 New food service business also 11 19.6 contributing to sale
Slide 7: Effect of Retirement Benefits; Consolidated Income for First Half
Effect of Accounting for Retirement Benefits (Consolidated) (¥ Billion) Increase Interim FY2007 Interim FY2008 (Decrease) A: Operating Income 14.1 11.3 (2.8) B: Effect of Accounting for (2.0) (0.1) 1.9 Retirement Benefits Operating Income Excluding Effect of Accounting for Retirement Benefits 12.1 1
Slide 8: State of Overseas Operations
State of Overseas Operations 11 Segment Information by Geographical Area Other Area Japan North America Elimination Total (Asia, Europe) Interim FY2008 162.0 15.2 12.5 — 189.7 Net Sales Interim FY2007 126.2 15.3 11.0 — 152.5 Year-on-year Change 35.8 (0.1) 1.5 — 37.2 Interim FY2008 11.7 (1.2) 1.0 (0.
Slide 9: North America Segment
North America Segment Servings sold Year-on-year growth of 4% in U.S. and 1% in Mexico (Jan. to Jun. 2007) Nissin Foods (U.S.A.) Co., Inc. Lower earnings under pressure from higher-than-expected rises in raw material costs Price adjustments (since May 2007) Product recall (to comply with new allergy
Slide 10: Business Policies for Second Half of FY2008
Measures to Restore Profitability from U.S. Business Studies concerning further price adjustments Improvements of product mix Introduction of new high-priced products Cost reduction through aggressive investment in production facilities 15 Business Policies for Second Half of FY2008 16 8
Slide 11: Business Policies for Second Half; Changes to MSRPs
Business Policies for Second Half of FY2008 Building acceptance for price adjustments Tightening of sales promotion expenditure criteria Powerful product strategies Launch of Cup Noodle Milk Seafood Noodle Creation of new product category through expansion of microwavable product range Aggressive ma
Slide 12: Overview of Price Adjustments; Revised Forecasts for Year Ending March 2008
Overview of Price Adjustments (Selected Products, Tax-Exclusive) Product Old MSRP New MSRP - Pillow-type: Chicken Ramen, Nissin-no- Ramenyasan, Demae Itcho, Nissin Yakisoba ¥90 ¥100 - Cup Noodle series (regular size) - Nissin-no-Donbei (regular size) - Nissin Yakisoba U.F.O. ¥155 ¥170 - Chicken Rame
Slide 13: Reference: Total World Demand in FY2006
Reference: Total World Demand in FY2006 Source: WINA (the World Instant Noodles Association) 91.6 billion NEW! 100 85.7 billion 79.7 billion 90 Others 69.6 billion Brazil 80 58.7 billion Russia 70 5.4 Thailand 60 5.4 Philippines 5.5 14.1 50 12.4 Korea 5.4 12.0 40 11.2 Vietnam 5.3 30 10.9 U.S.A. 44.3
Slide 14: BWLD EDF,
BWLD EDF, NISSIN BwaRa 12
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