Meiji Holdings Co., Ltd. · TSE:2269

Meiji — H1 FY2022 Earnings Presentation

43 slides from Meiji's earnings presentation, Nov 14, 2022

  1. Slide 1: Financial Results for the H1 of FYE March 2023 (FY2022)

    Financial Results for the H1 of FYE March 2023 (FY2022) (From April 1, 2022 to September 30, 2022) November 14, 2022 0 © Meiji Holdings Co., Ltd. All rights reserved. * Revenue recognition accounting standards are applied from beginning of FY2021.

  2. Slide 2: 1. Financial Summary for the H1 of FY2022

    1. Financial Summary for the H1 of FY2022 1 © Meiji Holdings Co., Ltd. All rights reserved.

  3. Slide 3: Summary for H1 FY2022 Consolidated Results

    Summary for H1 FY2022 Consolidated Results (JPY bn) FY2021 FY2022 FY2022 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +3.4% +2.1% Net sales 500.7 517.5 +16.8 +10.5 507.0 -14.2% +5.3% Operating profit 50.3 43.1 -7.1 +2.1 41.0 Op. profit margin 10.1% 8.3% -1.7 pt +0.3 pt 8.1% Profit attributab

  4. Slide 4: Food: Summary – H1 FY2022

    Food: Summary – H1 FY2022 (JPY bn) FY2021 FY2022 FY2022 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +2.8% +1.6% Net sales 409.0 420.6 +11.5 +6.6 414.0 -25.9% -14.1% Operating profit 39.5 29.3 -10.2 -4.8 34.1 Analysis of changes in operating profit H1 Results - FY2021 39.5 Due to increased/d

  5. Slide 5: Pharmaceutical: Summary – H1 FY2022

    Pharmaceutical: Summary – H1 FY2022 (JPY bn) FY2021 FY2022 FY2022 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +5.5% +4.5% Net sales 92.1 97.1 +5.0 +4.1 93.0 +29.9% +88.9% Operating profit 11.2 14.6 +3.3 +6.8 7.7 Analysis of changes in operating profit H1 Results - FY2021 11.2 : Recovery of

  6. Slide 6: 2. Outlook for the H2 of FY2022 and Business-specific Overview

    2. Outlook for the H2 of FY2022 and Business-specific Overview 5 © Meiji Holdings Co., Ltd. All rights reserved.

  7. Slide 7: Achieve 2023 Medium-term Business Plan

    Achieve 2023 Medium-term Business Plan Recovering growth trajectory of core businesses is the top priority We will work on fostering new growth drivers Points for FY2022 Plan  Recover growth trajectory of core businesses, in particular:  Functional yogurt and yogurt  Domestic ethical pharmaceutic

  8. Slide 8: Outlook for H2 FY2022 and Full-year

    Outlook for H2 FY2022 and Full-year (JPY bn) FY2022 FY2022 FY2022 FY2021 Full-year H2 Plan H2 Plan H2 Results (Rev. Nov. 8) YoY Change (Int. May 12) Plan YoY Change (Rev. Nov. 8) +4.4% +3.9% Consolidated Net sales 512.3 535.0 +22.6 528.5 1,052.5 +39.4 -5.4% -10.1% Operating profit 42.5 40.3 -2.2 51.

  9. Slide 9: Food: Strategies to Overcome Cost Increase -1

    Food: Strategies to Overcome Cost Increase -1 H1 FY2022 H1 FY2022 Int. Plan H1 FY2022 Results Vs. Int. (May 12) (Nov. 8) Plan Effects of cost increase on (JPY bn) operating profit Price hike + Decrease +4.9 +5.0 +0.1 volume 150 15 Additional cost -7.8 -10.5 -2.7 Price hike + Decrease volume increase

  10. Slide 10: Food: Strategies to Overcome Cost Increase -2

    Food: Strategies to Overcome Cost Increase -2 H2 FY2022 H2 FY2022 H2 FY2022 Int. Plan Rev. Plan Vs. Int. (May 12) (Nov. 8) Plan Effects of cost increase on (JPY bn) operating profit Price hike + Decrease volume +8.2 +15.3 +7.1 20 200 Price hike + Additional cost +15.3 -6.3 -18.2 -11.9 15 Decrease vo

  11. Slide 11: Food: FY2022 Results/Outlook for Yogurt and Cheese

    Food: FY2022 Results/Outlook for Yogurt and Cheese (JPY bn) FY2022 FY2022 FY2022 Full-year H1 Results H2 Plan Plan YoY Change (Rev. Nov. 8) YoY Change YoY Change (Rev. Nov. 8) -6.8% +7.8% +0.3% Net sales 100.3 110.0 210.4 -7.2 +7.9 +0.6 -35.7% +1.4% -18.4% Operating profit 12.0 16.4 28.5 -6.6 +0.2 -

  12. Slide 12: Efforts to Regain Growth of Functional Yogurt

    Efforts to Regain Growth of Functional Yogurt LG21 - New packaging from April 2022 that appeals to its functionality attracts customers’ attention - Accepted as Food with Function Claim. Change packaging to emphasize its function claim Tips to regain growth found from sales recovery of LG21:  Empha

  13. Slide 13: Food: FY2022 Results/Outlook for Nutrition Business

    Food: FY2022 Results/Outlook for Nutrition Business (JPY bn) FY2022 FY2022 FY2022 Full-year H1 Results H2 Plan Plan YoY Change (Rev. Nov. 8) YoY Change YoY Change (Rev. Nov. 8) +5.9% +5.6% +5.8% Net sales 59.5 +3.3 56.3 +2.9 115.9 +6.3 -18.8% -8.7% -14.3% Operating profit 8.6 -2.0 7.9 -0.7 16.5 -2.7

  14. Slide 14: Food: FY2022 Results/Outlook for Overseas Business

    Food: FY2022 Results/Outlook for Overseas Business (JPY bn) FY2022 FY2022 FY2022 Full-year H1 Results H2 Plan Plan YoY Change (Rev. Nov. 8) YoY Change YoY Change (Rev. Nov. 8) +26.5% +35.0% +30.9% Net sales 31.7 +6.6 37.1 +9.6 68.9 +16.2 -71.0% ― ― Operating profit 0.0 -0.2 -0.3 +0.9 -0.3 +0.7 Sales

  15. Slide 15: Pharmaceutical: Difference between Results and Plan

    Pharmaceutical: Deference between Results and Plan  Downward revision for H2, Upward revision for full-year (JPY bn) FY2022 FY2022 FY2022 H1 YoY Change H2 YoY Change Full-year YoY Change Int. Plan -31.2% +45.6% -0.8% 7.7 10.7 18.5 Operating profit (May 12) -3.5 +3.3 -0.1 H1 Results +29.9% -27.5% +7

  16. Slide 16: Pharmaceutical: FY2022 Results/Outlook for Domestic Ethical Pharmaceuticals Business

    Pharmaceutical: FY2022 Results/Outlook for Domestic Ethical Pharmaceuticals Business (JPY bn) FY2022 FY2022 FY2022 Full-year H1 Results H2 Plan Plan YoY Change (Rev. Nov. 8) YoY Change YoY Change (Rev. Nov. 8) +11.3% +2.5% +6.6% Net sales 47.5 +4.8 49.1 +1.1 96.7 +5.9 +205.7% -63.5% +65.8% Operating

  17. Slide 17: Pharmaceutical: Increase Sales of Generic Drug

    Pharmaceutical: Increase Sales of Generic Drug Sales of ethical pharmaceuticals business in Japan  Favorable sales of injectable antibacterial drugs, mainly (JPY bn) Sulbacillin, which was selected as the stable supply Others medicines* Category A (the 21 top-priority) Mainstay products (excl. gene

  18. Slide 18: Pharmaceutical: FY2022 Results/Outlook for Human Vaccines Business

    Pharmaceutical: FY2022 Results/Outlook for Human Vaccines Business (JPY bn) FY2022 FY2022 FY2022 Full-year H1 Results H2 Plan Plan YoY Change (Rev. Nov. 8) YoY Change YoY Change (Rev. Nov. 8) -15.3% +3.8% -6.3% Net sales 19.2 -3.4 20.7 +0.7 40.0 -2.7 -44.5% -53.5% -46.7% Operating profit 4.8 -3.8 1.

  19. Slide 19: Pharmaceutical: Development of Inactivated COVID-19 Vaccine (KD-414)

    Pharmaceutical: Development of Inactivated COVID-19 Vaccine (KD-414) 2022 2023 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 12 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 12 P I/II clinical study (Safety study, n=210) Announced preliminary results Adults on July 6 P II/III clinical study (immunogenic study, n=2,000） P III clinical study (n

  20. Slide 20: 3. Financial Strategy and Returns to Shareholders

    3. Financial Strategy and Returns to Shareholders 19 © Meiji Holdings Co., Ltd. All rights reserved.

  21. Slide 21: Cash Flows and Returns to Shareholders

    Cash Flows and Returns to Shareholders Financial Strategy and Capital Rationing  Points for FY2022 Plan Capital distribution focused on balance Cash flows Capital between appropriate profit returns and from operating expenditures growth investments in line with 2023 activities Approx. JPY 274 bn Me

  22. Slide 22: Outlook for FY2022 (Consolidated)

    Outlook for FY2022 (Consolidated) FY2021 FY2022 FY2022 Full-year Full-year (JPY bn) Full-year Rev. Plan Int. Plan YoY Change Results (Rev. Nov.8) (May 12) +3.9% Net sales 1,013.0 1,052.5 +39.4 1,035.5 -10.1% Operating profit 92.9 83.5 -9.4 92.5 Op. profit margin 9.2% 7.9% -1.2 pt 8.9% Profit attribu

  23. Slide 23: 2023 Medium-term Business Plan: Promote the Meiji ROESG Management Effectively

    2023 Medium-term Business Plan Promote the Meiji ROESG®* Management Effectively Convert business management to achieve both ROE improvement and ESG enhancement without any compromises Indicators ROE × Achieve ESG goals ＋ unique to Meiji ＝ The Meiji ROESG Target for Depending on Every Target for FY20

  24. Slide 24: Appendix

    Appendix 23 © Meiji Holdings Co., Ltd. All rights reserved.

  25. Slide 25: Consolidated Financial Results – H1 FY2022

    Consolidated Financial Results – H1 FY2022 (JPY bn) FY2022 H1 Results YoY Change Main factors for the change +3.4% Net sales 517.5 +16.8 ― Details on p 2-4 -14.2% Operating profit 43.1 -7.1 ― Details on p 2-4 -32.9% - Share of profit of entities accounted for using equity method (-1.0) Non-operating

  26. Slide 26: Financial Position as of September 2022

    Financial Position as of September 2022 (JPY bn) Results as of Sep. 2022 Change Main Factors for Change - Cash and deposits (+24.6) +11.5% Current assets 508.1 +52.5 - Notes and accounts receivable-trade (+12.7) - Raw materials and supplies (+9.5) +2.1% - Investment securities (+4.9) - Machinery, eq

  27. Slide 27: Consolidated Cash Flows – H1 FY2022

    Consolidated Cash Flows – H1 FY2022 (JPY bn) FY2022 H1 Results YoY Change Main Factors for Change - Change in contract liability (-15.3) - Change in inventories (-10.5) Cash flows from operating 25.1 -36.0 - Change in trade receivables (-9.0) activities - Profit before income taxes (-6.9) - Change i

  28. Slide 28: Analysis of Operating Profit – H1 FY2022

    Analysis of Operating Profit – H1 FY2022 (JPY bn) Consolidated Operating Profit Food Pharma Other H1 Results - FY2021 50.3 39.5 11.2 -0.5 Due to increased/decreased *1 sales +7.3 +1.8 +5.5 ― Impact of drug price revision -2.3 ― -2.3 ― *2 Changes in costs of goods sold -7.6 -7.7 +0.1 ― Changes in oth

  29. Slide 29: Analysis of Consolidated Operating Profit – FY2022

    Analysis of Consolidated Operating Profit – FY2022 (JPY bn) Consolidated Operating Profit Food Pharma Other Full-year Results - FY2021 92.9 75.9 18.6 -1.7 Due to increased/decreased sales +26.5 *1 +20.2 +6.3 ― Impact of drug price revision -5.0 ― -5.0 ― Changes in costs of goods sold -22.3 *2 -22.9

  30. Slide 30: Food: Net sales and Op. Profit by Business

    Food: Net sales and Op. Profit by Business (JPY bn) FY2021 FY2022 FY2022 FY2022 Full-year H1 Full-year YoY H2 Plan YoY YoY Results Results Change (Rev. 11/8) Change plan Change (Rev. 11/8) -6.8% +7.8% +0.3% Net sales 209.7 100.3 110.0 210.4 Yogurt & -7.2 +7.9 +0.6 cheese -35.7% +1.4% -18.4% Op. prof

  31. Slide 31: Food: Net sales and Op. Profit by Business

    Food: Net sales and Op. Profit by Business (JPY bn) FY2021 FY2022 FY2022 FY2022 Full-year H1 Full-year YoY H2 Plan YoY YoY Results Results Change (Rev. 11/8) Change plan Change (Rev. 11/8) -0.2% -0.8% -0.5% Frozen Net sales 58.2 32.2 -0.0 25.7 -0.1 580 -0.2 dessert& +15.9% +73.8% +27.4% ready meal O

  32. Slide 32: Food: Analysis of Op. Profit by Business – H1 FY2022

    Food: Analysis of Op. Profit by Business – H1 FY2022 (JPY bn) Food Chocolate Frozen Other/ Yogurt ＆ Drinking Segment Nutrition & B to B dessert & Overseas domestic cheese milk subsidiaries Total gummy ready meal H1 Operating Profit – 39.5 18.7 10.6 3.7 -0.0 0.8 2.3 0.2 2.9 FY2021 Due to increased/de

  33. Slide 33: Food: Analysis of Op. Profit by Business – FY2022

    Food: Analysis of Op. Profit by Business – FY2022 (JPY bn) Food Chocolate Frozen Other/ Yogurt ＆ Drinking Segment Nutrition & B to B dessert & Overseas domestic cheese milk subsidiaries Total gummy ready meal Operating Profit – FY2021 75.9 34.9 19.3 12.6 -0.7 2.7 2.9 -1.0 5.0 Results Due to increase

  34. Slide 34: Food: Sales by Main Product

    Food: Sales by Main Product (JPY bn) FY2021 FY2022 FY2022 FY2022 Full-year H1 Full-year YoY H2 Plan YoY YoY Results Results (Rev. 11/8) plan Change Change (Rev. 11/8) Change Yogurt 81.8 39.9 -6.0% 40.9 +4.0% 80.8 -1.2% Functional yogurt 98.0 45.2 -8.8% 52.0 +7.3% 97.2 -0.8% Cheese 29.1 13.5 -8.8% 14

  35. Slide 35: Pharmaceutical: Net sales and Op. Profit by Business

    Pharmaceutical: Net sales and Op. Profit by Business (JPY bn) FY2021 FY2021 FY2022 FY2022 Full-year H1 Full-year YoY H2 Plan YoY YoY Results Results (Rev. 11/8) Plan Change Change (Rev. 11/8) Change +11.3% +2.5% +6.6% Net sales 90.7 47.5 +4.8 49.1 +1.1 96.7 +5.9 Domestic ethical pharmaceuticals +205

  36. Slide 36: Pharmaceutical: Analysis of Op. Profit by Business – H1 FY2022

    Pharmaceutical: Analysis of Op. Profit by Business – H1 FY2022 (JPY bn) Pharma Domestic Overseas Human Veterinary Segment pharma- pharma- vaccine drug* Total ceuticals ceuticals H1 Operating Profit – FY2021 11.2 1.7 1.2 8.6 -0.4 Due to +5.5 +6.5 +0.5 +0.2 -1.7 increased/decreased sales Impact of NHI

  37. Slide 37: Pharmaceutical: Analysis of Op. Profit by Business – FY2022

    Pharmaceutical: Analysis of Op. Profit by Business – FY2022 (JPY bn) Pharma Domestic Overseas Human Veterinary Segment pharma- pharma- vaccine drug* Total ceuticals ceuticals Full-year Operating Profit – FY2021 18.6 3.6 4.0 11.4 -0.4 Result Due to +6.3 +7.3 +1.7 +0.6 -3.3 increased/decreased sales I

  38. Slide 38: R&D Pipeline – Infectious diseases

    R&D Pipeline – 1 ■ Japan ■Overseas R&D Pipeline (◆: discovered in-house) FY2022 FY2023 FY2024 Infectious diseases OP0595 Nacubactam [β-lactamase inhibitor] ◆ PI with β- Phase III Lactams [Relapsed or refractory Peripheral T-cell lymphoma HBI-8000 Tucidinostat (PTCL)] Approved ME3208 Belumosudil [Chr

  39. Slide 39: R&D Pipeline – Human vaccines Products

    R&D Pipeline – 2 ■ Japan ■Overseas R&D Pipeline (◆: discovered in-house) FY2022 FY2023 FY2024 P III Applied Approve KD-370 [Pentavalent vaccine against diphtheria, tetanus, pertussis, polio virus, and haemophilus influenza type b] P II Phase I/II Human vaccines Phase II/III KD-414 [Inactivated vacci

  40. Slide 40: R&D Pipeline – Veterinary drugs

    R&D Pipeline – 3 ■ Japan ■Overseas R&D Pipeline (◆: discovered in-house) FY2022 FY2023 FY2024 ME4137 [Injectable antibacterial drugs for cattle use] Applied Approve ME4137 [Injectable antibacterial drugs for swine use] Applied Approve Veterinary drugs ME4406 [Feed Additive] ◆ Apply ME4305 [Antibacte

  41. Slide 41: Key Currencies and Our Average Exchange Rates

    Key Currencies and Our Average Exchange Rates Foreign exchange target (JPY) USD EUR RMB For FY2022 (JPY) 160.00 138.24 140.32  At the beginning of 140.00 131.78 130.31 130.39 131.30 128.10 FY2022 123.71 124.41 138.68 120.68 118.94 120.00 129.04 USD 120 117.10 109.22 107.74 110.00 110.47 113.60 EUR

  42. Slide 42: Market Prices of Main Raw Materials Imported

    41 1,500 2,000 2,500 3,000 3,500 4,000 4,500 500 1,000 1,500 2,000 2,500 (USD/MT) (GBP/MT) 2021/4/1 2021/4/1 2021/5/1 2021/5/1 2021/6/1 2021/6/1 2021/7/1 2021/7/1 2021/8/1 2021/8/1 2021/9/1 2021/9/1 2021/10/1 2021/10/1 2021/11/1 2021/11/1 © Meiji Holdings Co., Ltd. All rights reserved. 2021/12/1 202

  43. Slide 43: Disclaimer

     Information in this material is not intended to solicit sale or purchase of shares in Meiji Holdings. The final decision relating to investments should be made based on the judgment of users themselves.  Business forecasts and other forward-looking statements are based on information available at

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