Meiji Holdings Co., Ltd. · TSE:2269

Meiji — FY2023 Earnings Presentation

54 slides from Meiji's earnings presentation, May 10, 2024

  1. Slide 1: Financial Results for FYE March 2024 (FY2023) and 2026 Medium-term Business Plan

    Financial Results for FYE March 2024 (FY2023) and 2026 Medium-term Business Plan (FYE March 2024: From April 1, 2023, to March 31, 2024) May 10, 2024 0 © Meiji Holdings Co., Ltd. All rights reserved.

  2. Slide 2: Agenda

    AGENDA 1. Summary of 2023 Medium-term Business Plan and Financial Results for FY2023 2. 2026 Medium-term Business Plan (Note) We revised a part of the following pages on May 14, 2024. - P19 Outlook of R&D expenses - P33 Food: Net Sales and Op. Profit by Business – FY2023 Result of B to B Business (N

  3. Slide 3: Summary of 2023 Medium-term Business Plan and Financial Results for FY2023

    1. Summary of 2023 Medium-term Business Plan and Financial Results for FY2023 2 © Meiji Holdings Co., Ltd. All rights reserved.

  4. Slide 4: Summary of 2023 Medium-term Business Plan – KPIs

    Summary of 2023 Medium-term Business Plan – KPIs (JPY bn) 2023 Medium-term FY2021 FY2022 FY2023 Business Plan Result Result Result*2 YoY change Target Integrated goal Meiji ROESG®*1 12.3 pt 13.8 pt 12.2 pt -1.6 pt 13 pt +4.1% Consolidated net sales 1,013.0 1,062.1 1,105.4 +43.3 1,080.0 +4.0% Food 82

  5. Slide 5: Summary of 2023 Medium-term Business Plan

    Summary of 2023 Medium-term Business Plan  Three-year period during which we focused on the Meiji ROESG and worked towards simultaneously realizing profit growth and sustainability activities • Food: Recovery of growth in core businesses is midway. Overseas business steadily expanded in the U.S. Im

  6. Slide 6: 2026 Medium-term Business Plan (FY2024-2026)

    2. 2026 Medium-term Business Plan (FY2024-2026) 5 © Meiji Holdings Co., Ltd. All rights reserved.

  7. Slide 7: Evolve the Meiji ROESG Management

    Ideals for 2026 Medium-term Business Plan Realizing a Better Future for People, Society and the Earth Concept Evolve the Meiji ROESG® Management Return to a growth trajectory by transforming focus markets, business structure, and our behavior Creating new markets and sustainably improving our corpor

  8. Slide 8: 2026 Medium-term Business Plan: Key strategies

    2026 Medium-term Business Plan Evolve the Meiji ROESG® Management Return to a growth trajectory by transforming focus markets, business structure, and our behavior Key strategies 1. Invest management resources into 2. Keep and improve stable cash flow growth businesses • Enhance competitive advantag

  9. Slide 9: Evolve the Meiji ROESG Management

    Evolve the Meiji ROESG® Management Continue to set Meiji ROESG as our top management goal as in the 2023 Medium-term Business Plan; Create value that leads to business and financial performance growth with sustainability activities Reviewing formula for calculating Meiji ROESG *Number of indicators

  10. Slide 10: “Trade-on” of Sustainability and Business

    “Trade-on” of Sustainability and Business Incorporate resolving social issues into business strategy and create social value through sustainability innovation; Achieve sustainable growth through “trade-on” with economic value <Structure of Sustainability Activities> <Key points of business initiativ

  11. Slide 11: 2026 Medium-term Business Plan: KPIs

    2026 Medium-term Business Plan: KPIs 2026 Medium-term Business Plan (JPY bn) FY2023 FY2024 FY2026 Result Plan Target vs. FY2023 Exchange rate assumptions Integrated goal Meiji ROESG® ― 8.0 pt 9.8 pt ― FY2024 Plan Consolidated operating +38.2% 84.3 86.0 116.5 USD JPY145 profit +32.1 +29.1% Food 64.3

  12. Slide 12: Outlook of Operating Profit for FYE March 2025

    Outlook of Operating Profit for FYE March 2025 Analysis of changes in operating profit Result - FY2023 64.3  Respond to the rapid rise in cocoa market prices and prolonged yen depreciation with measures such as price Due to increased/decreased sales +21.1 revisions and product improvements Food Seg

  13. Slide 13: Food: Accelerate to Grow Overseas Business

    Key strategy 1. Invest management resources into growth businesses Food: Accelerate to Grow Overseas Business Aggressive Expansion of Products and Businesses with Competitive Advantages <Direction of strategic products> 1. Products that are competitive  Expand to more countries in terms of technolo

  14. Slide 14: Food: Accelerate to Grow Overseas Business

    Key strategy 1. Invest management resources into growth businesses Food: Accelerate to Grow Overseas Business 〈Initiatives by business〉 2026 Medium-term Business Plan Dairy and Food solutions businesses (JPY bn) FY2023 FY2024 FY2026 Focus area: China, Asia Result Plan Target vs. FY2023 • Review of s

  15. Slide 15: Food: Pursue Added Value in Japan Business 1

    Key strategy 1. Invest management resources into growth businesses｜2. Keep and improve stable cash flow Food: Pursue Added Value in Japan Business 1 – Innovate Product Development Process <Product Development Process> Evaluation Framework 1 Product concept creation Evaluation Framework 2 Sustainable

  16. Slide 16: Food: Pursuing Added Value in Japan Business 2

    Key strategy 1. Invest management resources into growth businesses｜2. Keep and improve stable cash flow Food: Pursing Added Value in Japan Business 2 – Strengthen Existing Business by Leveraging New Products and Technologies Enhance and Expand B2B Business Create New Marketing Model  Increase in sa

  17. Slide 17: Pharmaceutical: Sustained Growth by Adding Growth from New Drugs

    Key strategy 1. Invest management resources into growth businesses｜2. Keep and improve stable cash flow Pharmaceutical: Sustained Growth by Adding Growth from New Drugs on Stable Revenue Platform 2026 Medium-term Business Plan and after Before 2023 Improve product Medium-term lineups to accelerate B

  18. Slide 18: Pharmaceutical: Sustained Growth by Adding Growth from New Drugs

    Key strategy 1. Invest management resources into growth businesses｜2. Keep and improve stable cash flow Pharmaceutical: Sustained Growth by Adding Growth from New Drugs on Stable Revenue Platform External Changes 1: FY2024 NHI price revision External Changes 2: Structural Reform of GE* Market  Basi

  19. Slide 19: Pharmaceutical: Developing Differentiated and Innovative Pipeline of New Drugs

    Key strategy 1. Invest management resources into growth businesses Pharmaceutical: Developing Differentiated and Innovative Pipeline of New Drugs Reliably and at the Fastest Pace Approval application 2026 Medium-term Business Plan 2026 Medium-term Business Plan The number of approval application: 8

  20. Slide 20: Pharmaceutical: Securing R&D Expenses through Stable Growth

    Key strategy 1. Invest management resources into growth businesses｜2. Keep and improve stable cash flow Pharmaceutical: Securing R&D Expenses through Stable Growth in Domestic Main Categories and Overseas <Sales of domestic main categories and overseas> <Outlook of R&D expenses> 2026 Medium-term Bus

  21. Slide 21: Strengthen Business Management through ROIC

    Key strategy 2. Keep and improve stable cash flow Strengthen Business Management through ROIC Steadily expand spread and aim to achieve ROIC an ROIC level of 10% in the future (Consolidated) 8.4% 8.5% or more 7.0% 6.3% 6.2% WACC 5% (JPY bn) FY2021 21年度 FY2022 22年度 FY2023 23年度 FY2024 24年度 … FY2026 26

  22. Slide 22: Food: Efforts to Improve ROIC

    Key strategy 2. Keep and improve stable cash flow Food: Efforts to Improve ROIC ROIC by business*1 FY2023 FY2026 Operating Profit Margin Improvement Company-wide Hurdle rate (E) Target WACC for food segment 5% 6% 10% 15% FY2023 operating profit 64.3 • Enhance proposals for value-added Approx. Domest

  23. Slide 23: Acquire and Develop Human Capital to Support Growth Strategies

    Key strategy 3. Promote human capital strategy linked to management strategy Acquire and Develop Human Capital to Support Growth Strategies and Improve Engagement ・ Increase Employee Engagement Build Human Capital Portfolio Necessary for Growth Strategies ・ Improve Performance of Each Employee Key H

  24. Slide 24: Cash Allocation aimed at Improving Corporate Value

    Cash Allocation aimed at Improving Corporate Value < Three-year cash allocation policy> • Asset reduction through structural reforms capital procurement • Investment securities reduced to less than 5% of Asset reduction/ consolidated net assets Add-on M&A/alliances • External procurement assumes mai

  25. Slide 25: Appendices

    Appendices 24 © Meiji Holdings Co., Ltd. All rights reserved.

  26. Slide 26: Results of FY2023

    Results of FY2023 25 © Meiji Holdings Co., Ltd. All rights reserved.

  27. Slide 27: Consolidated Financial Results – FY2023

    Consolidated Financial Results – FY2023 (JPY bn) FY2023 Result YoY Change Main factors for the change +4.1% Net sales 1,105.4 +43.3 ― Details on page 31 and 35 +11.8% Operating profit 84.3 +8.8 ― Details on page 31 and 35 -12.3% Non-operating profit 4.0 -0.5 - Foreign exchange gains (-0.4) +110.0% N

  28. Slide 28: Financial Position as of March 2024

    Financial Position as of March 2024 (JPY bn) Result as of Mar. 2024 Change Main factors for the change +19.6% - Cash and deposits (+43.3) Current assets 563.0 +92.1 - Notes and accounts receivable-trade (+29.2) - Construction in progress (-25.5) - Investment securities (-24.7) -3.5% Non-current asse

  29. Slide 29: Analysis of Consolidated Operating Profit – FY2023

    Analysis of Consolidated Operating Profit – FY2023 （JPY bn） Consolidated Operating Profit Food Pharma Other Results - FY2022 75.4 55.8 21.7 -2.1 Due to increased/decreased +36.1 +2.3 ― sales +38.5 *1 Impact of drug price revision -3.4 ― -3.4 ― Changes in costs of goods sold -27.7 *2 -26.6 -1.1 ― Cha

  30. Slide 30: Consolidated Cash Flows for FY2023

    Consolidated Cash Flows for FY2023 (JPY bn) FY2023 Result YoY Change Main factors for the change - Increase in inventories (+15.6) Cash flows from operating - Impairment losses (+15.2) 107.9 +22.9 activities - Loss on sales of property, plant and equipment (+14.7) - Decrease in trade receivables (-2

  31. Slide 31: Meiji ROESG Results of FY2023

    Meiji ROESG Results of FY2023 × ＋ ＝ Indicators ROE Achieve unique to Meiji ROESG ESG goals Meiji x1.2 10.16% (Achieved 5 +0 pt 12.2 pt (3 yrs average) indicators) FY2023 Evaluation indicator FY2023 Result Target Evaluation indicator Target Result Extend healthy life expectancy*1 +0.56 years*2 +1 yea

  32. Slide 32: Food: Summary – FY2023

    Food: Summary – FY2023 （JPY bn） FY2023 FY2022 FY2023 vs. FY2023 Plan Result Result YoY Change Plan (Revised on Apr. 9) +4.0% -0.6% Net sales 865.6 900.1 +34.5 -5.3 905.5 +15.1% +0.4% Operating profit 55.8 64.3 +8.4 +0.2 64.0 Analysis of changes in operating profit Results - FY2022 55.8 : Increased d

  33. Slide 33: Food: Analysis of Operating Profit by Business – FY2023

    Food: Analysis of Operating Profit by Business – FY2023 (JPY bn) Frozen Other/ Segment Yogurt ＆ Chocolate & Nutrition Drinking milk B to B dessert & Overseas domestic Total Cheese Gummy ready meal subsidiaries Operating Profit – FY2022 55.8 24.1 14.6 11.1 -2.5 3.0 3.2 -0.9 3.0 Due to increased/decre

  34. Slide 34: Food: Net Sales and Op. Profit by Business – FY2023

    Food: Net Sales and Op. Profit by Business – FY2023 (JPY bn) FY2022 FY2023 FY2022 FY2023 Result Result YoY Result Result YoY Change Change +0.3% +6.2% Net sales 202.5 203.0 +0.5 Net sales 57.9 61.5 +3.5 Frozen dessert& Yogurt & cheese +10.6% ready meal +24.1% Op. profit 24.1 26.7 +2.5 Op. profit 3.2

  35. Slide 35: Food: Sales by Main Product

    Food: Sales by Main Product (JPY bn) FY2024 FY2022 FY2023 Full-year Result Result YoY Change YoY Change Plan Yogurt *2 76.1 74.7 -1.9% 76.5 +2.7% Functional yogurt *2 95.4 95.7 +0.4% 98.5 +2.7% Cheese 28.2 28.8 +2.2% 27.5 -4.6% Chocolate 99.1 102.9 +3.8% 104.2 +1.2% Infant formula and enteral formul

  36. Slide 36: Pharmaceutical: Summary – FY2023

    Pharmaceutical: Summary – FY2023 （JPY bn） FY2022 FY2023 FY2023 Result Result YoY Change vs. FY2023 Plan Plan (Revised on Apr. 9) +4.5% -1.0% Net sales 197.2 206.1 +8.8 -2.0 208.1 +4.6% -3.3% Operating profit 21.7 22.7 +0.9 -0.7 23.5 Analysis of changes in operating profit Results - FY2022 21.7 Due t

  37. Slide 37: Pharmaceutical: Analysis of Operating Profit – FY2023

    Pharmaceutical: Analysis of Operating Profit – FY2023 (JPY bn) Domestic ethical Overseas ethical Segment Total Human vaccines Veterinary drugs pharmaceuticals pharmaceuticals Operating Profit – FY2022 21.7 10.1 7.7 2.4 1.4 Due to increased/decreased sales +2.3 +1.6 +0.4 +0.3 +0.0 Impact of drug pric

  38. Slide 38: Pharmaceutical: Net Sales and Op. Profit by Business – FY2023

    Pharmaceutical: Net Sales and Op. Profit by Business – FY2023 (JPY bn) FY2022 FY2023 Result Result YoY Change +5.8% Net sales 100.1 105.9 +5.8 Domestic ethical pharmaceuticals -20.1% Op. profit 10.1 8.1 -2.0 +6.1% Net sales 51.4 54.5 +3.1 Overseas ethical pharmaceuticals +22.7% Op. profit 7.7 9.4 +1

  39. Slide 39: Plan for FY2024 and 2026 Medium-term Business Plan

    Plan for FY2024 and 2026 Medium-term Business Plan 38 © Meiji Holdings Co., Ltd. All rights reserved.

  40. Slide 40: Business Category Changes within Segments from FY2024

    Business Category Changes within Segments from FY2024 Until FY2023 From FY2024 Category Main Products Category Main Products Functional yogurt, yogurt, drinking milk, Food Yogurt&cheese Functional yogurt, yogurt, cheese Dairy overseas Infant formula, sports nutrition (incl. SAVAS Milk Nutrition Prot

  41. Slide 41: Outlook for FY2024

    Outlook for FY2024 (JPY bn) Full-year H1 Plan H2 Plan YoY Change YoY Change Plan YoY Change +2.8% +6.8% +4.8% Net sales 561.5 +15.4 597.5 +38.0 1,159.0 +53.5 Consolidated -19.0% +25.4% +2.0% Operating profit 36.0 -8.4 50.0 +10.1 86.0 +1.6 Profit attributable to -24.8% +27.5% -1.3% owners of parent 2

  42. Slide 42: Analysis of Consolidated Operating Profit – FY2024

    Analysis of Consolidated Operating Profit – FY2024 （JPY bn） Consolidated Operating Profit Food Pharma Other Result - FY2023 84.3 64.3 22.7 -2.7 Due to increased/decreased +21.1 +7.8 ― sales +28.9 *1 Impact of drug price revision +1.3 ― +1.3 ― Changes in costs of goods sold -8.1 *2 -8.8 +0.6 ― Change

  43. Slide 43: Food: Analysis of Operating Profit by Business – FY2024

    Food: Analysis of Operating Profit by Business – FY2024 (JPY bn) Segment Dairy Chocolate Nutrition Food solutions Other Total Result Operating Profit – FY2023 64.3 19.9 15.5 16.4 9.8 2.4 Due to increased/decreased +21.1 +7.6 +5.4 +5.2 +5.4 -2.5 sales Changes in COGS -8.8 -1.5 -4.8 -0.4 -2.0 -0.2 Cha

  44. Slide 44: Food: Net Sales and Op. Profit by Business

    Food: Net Sales and Op. Profit by Business (JPY bn) FY2023 FY2024 FY2026 Result Plan YoY Change Target vs. FY2023 +2.9% Net sales 266.6 274.3 +7.7 ― ― Dairy +15.3% +47.7% Op. profit 19.9 23.0 +3.0 29.5 +9.5 +3.0% Net sales 155.5 160.1 +4.6 ― ― Chocolate -11.3% +31.7% Op. profit 15.5 13.8 -1.7 20.5 +

  45. Slide 45: Pharmaceutical: Analysis of Operating Profit – FY2024

    Pharmaceutical: Analysis of Operating Profit – FY2024 (JPY bn) Domestic Overseas Vaccines and Segment Total pharmaceuticals pharmaceuticals Veterinary drugs (Japan) Results Operating Profit – FY2023 22.7 15.8 4.9 1.9 Due to increased/decreased sales +7.8 -1.1 -1.2 +10.1 Impact of drug price revision

  46. Slide 46: Pharmaceutical: Net Sales and Op. Profit by Business

    Pharmaceutical: Net Sales and Op. Profit by Business (JPY bn) FY2023 FY2024 FY2026 Result Plan YoY Change Target vs. FY2023 +6.0% Domestic Net sales 105.2 111.6 +6.3 ― ― pharmaceuticals (Japan) -1.6% +15.5% Op. profit 15.8 15.6 -0.2 18.3 +2.4 +15.0% Net sales 57.1 65.7 +8.5 ― ― Overseas pharmaceutic

  47. Slide 47: Meiji ROESG Target of FY2026

    Meiji ROESG Target of FY2026 ROE × Achieve ESG goals ＝ Meiji ROESG Depending on 3 years average Target for achievement, set (Target for FY2026: FY2026: 9.5% or more) coefficient x0.8- 9.8 pt 1.2 Evaluation indicator Target for FY2026 MSCI ESG Ratings AA Details of target products External ESG Food e

  48. Slide 48: Others

    Others 47 © Meiji Holdings Co., Ltd. All rights reserved.

  49. Slide 49: Key Currencies and Our Average Exchange Rates

    Key Currencies and Our Average Exchange Rates (JPY) USD EUR RMB Exchange rate assumptions 180.00 FY2024 Plan 157.70 158.82 160.90 160.00 150.35 USD JPY145 140.32 143.74 143.34 138.24 140.00 131.30 145.44 147.00 147.87 EUR JPY155 138.68 141.16 138.11 133.26 120.00 129.04 RMB JPY20 117.10 100.00 80.00

  50. Slide 50: Food: Market Prices of Main Raw Materials Imported

    Food: Market Prices of Main Raw Materials Imported (USD/MT) Nonfat Dry Milk (USD/MT) Cheese 3,000 5,000 4,000 2,000 3,000 2,000 1,000 1,000 0 0 (GBP/MT) Cocoa (USD/lb) Sugar 12,000 30 10,000 25 8,000 20 6,000 15 4,000 10 2,000 5 0 0 49 © Meiji Holdings Co., Ltd. All rights reserved. Source: Bloomber

  51. Slide 51: Pharmaceutical: R&D Pipeline – Infectious disease and others

    Pharmaceutical: R&D Pipeline - 1 Code No. Efficacy Classification Target Disease Stage (Generic Name) Infectious disease Infections caused by carbapenem-resistant OP0595* (Nacubactam) β-lactamase inhibitor Phase III (Japan, Overseas)** bacteria Approved (Japan) ME3208 (Belumosudil) ROCK2 inhibitor C

  52. Slide 52: Pharmaceutical: R&D Pipeline – Vaccine

    Pharmaceutical: R&D Pipeline - 2 Code No. Efficacy Classification Target Disease Stage (Generic Name) Pentavalent vaccine against diphtheria, KD-370 Vaccine tetanus, pertussis, poliovirus, and Approved (Japan) haemophilus influenza type b Self-amplifying mRNA vaccine against ARCT-154 Vaccine Approve

  53. Slide 53: Pharmaceutical: R&D Pipeline – Veterinary Drugs

    Pharmaceutical: R&D Pipeline - 3 Code No. Efficacy Classification Stage ME4137 Injectable antibacterial drug for cattle Approved (Japan) ME4137 Injectable antibacterial drug for swine Filed (Japan) KD-412* Vaccine for cattle Filed (Japan) Veterinary Drugs MD-22-3002 Anti-inflammatory drug for cattle

  54. Slide 54: Information in this material is not intended to solicit sale or purchase of shares

     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

Meiji Holdings — FY2023 Earnings Presentation on 6ix