Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — FY2023 Earnings Presentation
51 slides from Nissin Foods's earnings presentation, May 10, 2023
Slide 1: Financial Results for FY 3/2023
Financial Results for FY 3/2023 May 10, 2023 NISSIN FOODS HOLDINGS CO., LTD. (TSE Stock Code: 2897) Financial Results Presentation: May 11, 2023
Slide 2: Agenda
I. FY 3/2023 Financial Results and FY3/2024 Plan ………………… P2~ Takashi Yano, Executive Officer and CFO II. Progress of Mid- to Long-Term Growth Strategy ………………… P15~ Koki Ando, Representative Director, President and CEO Noritaka Ando, Executive Vice President, & Representative Director, COO and Presid
Slide 3: Today's Point
Today’s Point • Point 1: FY 3/2023 Financial Results ➢ Revenue and every profit hit record highs. Revenue and profits increased by double-digit percentage year-on-year (consolidated). ➢ Overseas business continued to see strong performance, driven by the U.S. and its core operating profit ratio for
Slide 4: FY 3/2023 Financial Results
FY 3/2023 Financial Results 3
Slide 5: FY 3/2023 Consolidated Financial Summary
FY 3/2023 Consolidated Financial Summary Institutional accounting basis Constant currency basis Bil. yen YoY change YoY change FY 3/2023 FY 3/2023 Amount Ratio Amount Ratio Revenue 669.2 + 99.5 + 17.5% 631.7 + 61.9 + 10.9% Core operating profit 60.2 + 10.6 + 21.5% 56.1 + 6.5 + 13.1% of existing busi
Slide 6: Analysis of Core OP of Existing Businesses
Analysis of Core OP of Existing Businesses Domestic and Overseas: Domestic and Overseas: (Bil.Yen) +) Price revisions etc. - ) Increase in raw materials, energy costs, etc. +51.7 (39.7) Overseas Premier Foods became Overseas (18.0) +31.1 equity-method affiliate +2.7 YoY +10.6 bil. yen Domestic (21.7
Slide 7: Financial Summary by Segment
Financial Summary by Segment In addition to significant growth overseas, demand remained firm in Japan, resulting in increased revenue across all three businesses. Profit growth at NISSIN YORK and KOIKE-YA supported profits in our domestic business, which struggled in the face of cost increases. Ove
Slide 8: Revenue Results by Segment
Revenue Results by Segment Revenue from Overseas Business grew at a high rate of 21.6% year on year (constant currency basis). Revenue from Domestic Business grew revenues due to price revisions as well. Institutional accounting basis Constant currency basis Bil. yen YoY change YoY change FY 3/2023
Slide 9: Core OP Results by Segment
Core OP Results by Segment Achieved double-digit growth year on year. Overseas Business, NISSIN YORK, and KOIKE-YA contributed to growth. FY 3/2023 Institutional accounting basis FY 3/2023 Constant currency basis Bil. yen Other Income YoY change YoY change OP and Expenses Core OP Core OP Amount Rati
Slide 10: FY 3/2024 Plan
FY 3/2024 Plan 9
Slide 11: FY 3/2024 Full-Year Earnings Plan
FY 3/2024 Full-Year Earnings Plan We aim for revenue to be over 700 billion yen. Core operating profit is projected to increase by 6.3% YoY to 64 billion yen. Profit attributable to owners of the parent should increase YoY when excluding one-time gain from tax effect accounting (approx. 4.4 billion
Slide 12: FY 3/2024 Plan by Segment
FY 3/2024 Plan by Segment Revenue (IFRS) Core Operating Profit (Non-GAAP) Bil. yen FY 3/2024 FY 3/2023 Results FY 3/2024 FY 3/2023 Results Plan Revenue YoY change Plan Core OP YoY change NISSIN FOOD PRODUCTS 231.0 220.2 + 10.8 + 4.9% 28.0 26.6 + 1.4 + 5.4% MYOJO FOODS 42.0 40.5 + 1.5 + 3.7% 2.5 2.3
Slide 13: Analysis of Core Operating Profit of Existing Businesses by Segment
Analysis of Core Operating Profit of Existing Businesses by Segment (Bil. yen) U.S. : +) Profit contribution due to increase in YoY Change +) Price revision impact, maintain volume premium product sales composition - ) Increase in raw materials costs, energy costs +3.8 Bil. yen +1.5 +6.3% +0.7 +1.3
Slide 14: Reducing Cross-Shareholdings
Reducing Cross-Shareholdings Achieved reduction target of 10 billion yen in two years announced in May 2021 through stock sales (1) and (2). Ratio of cross-shareholdings to equity dropped to below 10% after the conversion of overseas investees into 1,000 25. equity-method affiliate. Ratio of cross-s
Slide 15: EBITDA and Cash Flow
EBITDA and Cash Flow EBITDA Cash Flows (Bil. Yen) (Bil. Yen) 90.0 84.5 30.0% 72.7 80.0 76.0 72.7 64.8 74.9 57.5 64.8 67.5 25.0% 52.9 57.5 70.0 52.9 40.7 60.0 40.7 20.0% 53.1 50.0 14.4% 15.0% 13.1 13.1% 12.6% 15.0% 13.1 40.0 11.8% 30.0 10.0% (3.5) (10.1) (3.5) 20.0 (10.1) (19.0) 5.0% (26.5) (19.0) 10
Slide 16: Progress of Mid- to Long-Term Growth Strategy
Progress of Mid- to Long-Term Growth Strategy 15
Slide 17: Framework of Mid- to Long-Term Growth Strategy 2030
Framework of Mid- to Long-Term Growth Strategy 2030 Strengthen Cash EARTH FOOD Pursue New Generation Capabilities of Existing Businesses CHALLENGE 2030 Businesses Make a significant shift in Take on the challenge to Co-create Future Foods with our profit portfolio through food science utilize finite
Slide 18: Strategy 2030 Progress: Profit Growth and Portfolio Changes
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 Mid- to Long-Term Growth Strategy 2030 Progress ~ Profit Growth and Portfolio Changes Global demand for instant noodles expanded significantly under the COVID-19 pandemic, becoming a staple
Slide 19: Mid- to Long-Term Growth Strategy 2030: Main KPIs (Financial)
Mid- to Long-Term Growth Strategy 2030 ~ Main KPIs (Financial) [Efficiencies] ROE [Safety] Net Debt/EBITDA Ratio (Multiple) Mid- to (Times) Mid- to 11.5% 10.7% Long-Term Long-Term 9.0% 8.9% Target 5.9% Target 0.1 -0.2 -0.3 10% Over the -0.5 -0.4 ≤2X Long Term 2018 2019 2020 2021 2022 (FY) 2018 2019
Slide 20: Core Operating Profit Ratio by Business Segment
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 Mid- to Long-Term Growth Strategy 2030 Progress ~ Core Operating Profit Ratio by Business Segment 480 Changes in Core Operating Profit* 18.0% Future Direction 430 16.0% (Bil. Yen) 380 13.3%
Slide 21: Capital Expenditures Plan
Strengthen Cash Generation EARTH FOOD CHALLENGE Capabilities of Existing Businesses Pursue New Businesses 2030 Capital Expenditures Plan Increase production capacity to eliminate bottlenecks and move further along growth trajectory as demand rises globally for instant noodles. Plans call for increas
Slide 22: Global Demand for Instant Noodles
Strengthen Cash Generation EARTH FOOD CHALLENGE Capabilities of Existing Businesses Pursue New Businesses 2030 Global Demand for Instant Noodles Global Demand for Instant Noodles & Nissin's basic strategy The bubble size＝ Demands (100 mil.) 70 : CY2011 : CY2022 60 Asia アジア地域（インド除く）, 59.5 Expand our
Slide 23: EARTH FOOD CHALLENGE 2030
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Businesses CHALLENGE 2030 Pursue New Businesses EARTH FOOD CHALLENGE 2030 Actual data for Jan. to Dec. 2022 Our Challenge to Utilize Finite Resources Effectively Conserve Natural Create a World Source Sustainably Resources withoutDomesti
Slide 24: Energy-Saving: Scope 1+2 Progress
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 Scope 1+2 Progress Reduced CO2 emissions well under planned standard (2018), mainly through transition to renewable energy options. 会社名 Scope 単位 Unit 2018 2019 2020 2021 2022 2022 vsvs 2022
Slide 25: Scope 3 Progress
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 Scope 3 Progress Scope 3 emissions trending downward, largely due to increased use of RSPO palm oil. 会社名 Scope 単位 Unit 2018 2019 2020 2021 2022 2022 vsvs 2022 2018年比 2018 Scope1 237 254 266
Slide 26: Upward Revisioning of Goals Towards Carbon Neutrality
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 Upward Revisioning of the Goals Towards Carbon Neutrality The CO2 reduction goals for 2030 has been revised upwards considering the 1.5°C target. Initiatives to achieve them will be further
Slide 27: Contemporary Social Issues and Vision for New Businesses
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 Contemporary Social Issues and Vision for New Businesses Excessive Calories Hidden Malnutrition Frailty A state of physical and Increased mortality and Lack of calories and mental deteriora
Slide 28: The KANZEN MEAL Brand
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 The KANZEN MEAL Brand The KANZEN MEAL Brand Pursues a Perfect Balance of 33 Nutrients and Deliciousness! 完全メシとは What is KANZEN MEAL? A Perfect Balance of 33 Nutrients and Deliciousness! Vit
Slide 29: KANZEN MEAL: Great Start in FY 3/23, Expand the Lineup in FY 3/24
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 KANZEN MEAL: Great Start in FY 3/23, Expand the Lineup in FY 3/24 Pursue The Perfect Balance of Nutrition and Deliciousness! May 30, 2022 Launched Sales From the NISSIN FOODS Group Online S
Slide 30: KANZEN MEAL: Sales Growth
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 KANZEN MEAL: Sales Growth KANZEN MEAL Series Sold More Than 10 Million Servings in its First Year on the Market! Received Numerous Awards in FY 3/23! Nearly 10 Million Meals Sold in the Fir
Slide 31: Frozen KANZEN MEALs: Good Start in FY 3/23
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 Frozen KANZEN MEALs: Good Start in FY 3/23, Expand the menu in FY 3/24 Pursue The Perfect Balance of Nutrition and Deliciousness! 20g or 6g or Main product features around more in less than
Slide 32: KANZEN MEAL: Toward Greater Advancements
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 KANZEN MEAL: Toward Greater Advancements The Expanding World of KANZEN MEAL Frozen KANZEN MEAL KANZEN MEAL Series E-Commerce Series Nine Products Expanded Lineup Beginning April 3, 2023! Be
Slide 33: Toward Becoming a 10 Bil. Yen Brand in FY3/25
Strengthen Cash Generation EARTH FOOD Capabilities of Existing Pursue New Businesses Businesses CHALLENGE 2030 KANZEN MEAL: Toward Becoming a 10 Bil. Yen Brand Toward Becoming a 10 Bil. Yen Brand in FY3/25 FY 3/25 Toward a 10.0 Bil. Yen FY 3/24 Brand 6.0 Bil. yen (Market Sales Price Conversion) FY 3
Slide 34: Status of Our Businesses
Status of Our Businesses 33
Slide 35: Domestic Instant Noodles Business
Domestic Instant Noodles Business Revenue remained strong due to steady demand with continued growth in sales volume from the previous year. However, profits decreased due to the impact of rising costs for raw materials, packaging materials and energy. Revenue FY2021 FY2022 (Bil. Yen) NISSIN FOOD PR
Slide 36: Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS): Market Trends
Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS) Market Trends Through FY3/23 ◼ NISSIN Shipped Price Basis Price Revisions *April-March Total: +5% ➢ Sales have exceeded previous-year results since August; 15% price revisions have contributed to an increase of 5% for 12% 12% 10% 10% 10% 8% 8%
Slide 37: Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS)
Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS) < CUP NOODLE Brand> < DONBEI Brand> ➢ Six consecutive years of record-high sales! ➢ Eight consecutive years of record-high sales! ➢ CUP NOODLE PRO +44% year on year *1 ➢ No.1 in Sales in the Bowl-Type Category! *2 ➢ Good start of newly release
Slide 38: Domestic Non-Instant Noodles Business
Domestic Non-Instant Noodles Business Revenue and profit increased due to contributions from YORK, with strong performance from PILKUL MIRACLE CARE, and KOIKE-YA, with strong performance from standard products Revenue FY2021 FY2022 (Bil. Yen) 200.0 Chilled (-2%) : Decreased due to lower sales volume
Slide 39: The Americas
The Americas Significant increase in revenue and profit due to successful price revisions in the U.S. and ongoing strong volume Revenue FY2021 FY2022 (Bil. Yen) U.S. : Continued high demand, maintaining the previous year‘s volume level 160.0 even after the price revision. Increased due to strong sal
Slide 40: The Americas (NISSIN FOODS (U.S.A.))
The Americas (NISSIN FOODS (U.S.A.)) Strong performance after the 36% price revision. Plans to build a third plant to meet high demand for instant noodles 700 ◼ Revenue (US$) 600 United States 500 ➢ Response to cost increases. Implemented revisions and significantly improved profit structure. 400 Sa
Slide 41: The Americas (Brazil and Mexico)
The Americas (Brazil and Mexico) Brazil: Absolute marketing leader fostering a new food culture with cup-type instant noodles and bag-type instant noodles Mexico: Continued strong sales due to increased demand and aggressive sales activities to develop new customers 2,000 ◼ Revenue (Brazil) (R$) Bra
Slide 42: China (incl. H.K.)
China (incl. H.K.) Profit increased due to price revisions, despite raw materials price hikes Revenue FY2021 FY2022 (Bil. Yen) 70.0 Hong Kong : Increased due to the effects of price revisions 60.0 (Forex impact +4.0 Bil. yen) 50.0 Mainland China : Increased due to price revisions even in a tough 40.
Slide 43: China (incl. H.K.) (NISSIN FOODS (Hong Kong) Disclosure Basis)
China (incl. H.K.) (NISSIN FOODS (Hong Kong) Disclosure Basis) Hong Kong ◼ Revenue (December Year-End) (HK$M) ➢ Instant Noodles Business: Favorable sales of high value-added bag-type 2,450 instant noodles 2,400 2,100 ➢ Non-Instant Noodles Businesses - Expand profit-earning opportunities Mainland Chi
Slide 44: Asia
Asia Increased due to price revisions in each country, despite raw materials price hikes Revenue FY2021 FY2022 (Bil. Yen) By descending order of revenue 20.0 Thailand ：Increased (Forex impact +0.6 Bil. yen) 15.0 India ：Increased (Forex impact +0.6 Bil. yen) 10.0 Singapore ：Increased (Forex impact +0
Slide 45: EMEA
EMEA Revenue rose 1.5 times year on year in the fast-growing instant noodles market Premier Foods contributed 2.7 billion yen to profit Revenue FY2021 FY2022 (Bil. Yen) 20.0 15.0 • CUP NOODLES, Soba and Demae Ramen brands performed well 10.0 • Increased mainly in the U.K., Germany, and France (Forex
Slide 46: Appendix
Appendix 45
Slide 47: Reference: Revenue and Volume in the Americas and Overseas (YoY)
Reference: Revenue and Volume in the Americas and Overseas (YoY) 4-６月 7-9月 2022年度 FY2022 Apr.- Jun. Jul.- Sep. Oct.- Dec. 1-3月 Jan.- Mar. (4-3月) (Apr.- Mar.) Revenue Volume Revenue Volume Revenue Volume Revenue Volume Revenue Volume +low-single +low-single +low-single -low-single +low-single U.S. +1
Slide 48: Price Revisions (Domestic)
Price Revisions (Domestic) The Domestic Instant Noodles Business is scheduled to implement price revisions for shipments beginning June 1, NISSIN YORK is scheduled to implement price revisions for shipments beginning June 30. FY 3/2020 ~ FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024 NISSIN FOOD Business N
Slide 49: Price Revisions (Overseas)
Price Revisions (Overseas) We intend to maintain a policy of revising prices as needed in accordance with conditions in each region. FY 3/2020 ~ FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024 U.S. May (Bag, Cup) Aug. Average 36% Apr. 19 (Bag, Cup) Jan. (Bag, Cup) The Americas (Bag, Cup) Brazil May 20 Nov.
Slide 50: (Reference) EV/EBITDA Multiples
(Reference) EV/EBITDA Multiples (Times) 17 日清食品HD NISSIN FOODS HD TOPIX食品 TOPIX FOODS 15 TOPIX TOPIX 13 11 9 7 5 3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (FY) *1. Prepared by the NISSIN IR Office based on FACTSET data. *2. NISSIN FOODS HOLDINGS figures are for the
Slide 51: Disclaimer
Company plans, business forecasts, strategies, and other information contained in this document are based on management judgments derived from information available at the time of this publication. Be aware that these are only future projections, and actual results may differ due to various risks an