FP Corporation · TSE:7947
FP — FY2020 Earnings Presentation
70 slides from FP's earnings presentation, May 8, 2020
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2020
Financial Results for the Fiscal Year Ended March 31, 2020 FP Corporation May 8, 2020 FP Corporation ・
Slide 2: Cautions for Handling This Material
Cautions for Handling This Material We have paid extremely close attention to the information provided through presentations at this session and contained in the handouts. The forward-looking statements included in the information are our estimates based on the information available at the time of p
Slide 3: Table of Contents
= Table of Contents = ◆ Results and Plan Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami ... 4 ◆ To Increase Corporate Value President Morimasa Sato . . . 14 ◆ Supporting Data . . . 62 FP Corporation ・
Slide 4: Consolidated Financial Results
Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 Executive Vice President and Director, Executive General Manager of Finance and Accounting Division Isao Ikegami FP Corporation 4・
Slide 5: Financial Results Summary
Financial Results Summary (For the FY Ended March 2020) Results for Full year Full year Projections Record high FY ended March 2019 FY ended March 2020 FY ended March 2020 Increase/ Year-on Progress Unit: million yen Performance Percentage Performance Percentage decrease -year Quantity Planned Perce
Slide 6: Increase/Decrease in Ordinary Profit
Increase/Decrease in Ordinary Profit (For the FY Ended March 2020) .0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Unit: billion yen Fiscal Year ended March 2019 14.86 1st half 2nd half 1st half 6.48 2nd half 8.38 The Price of from forecast +0.77 ＋0.27 as of October 31 +0.25 +0.52 Material Virgin PET
Slide 7: Capital Investments and R&D Costs
Capital Investments and R&D Costs (For the FY Ended March 2020) Results for Full year Full year projections FY ended March 2019 FY ended March 2020 FY ended March 2020 Increase / Progress Unit: million y en Performance Performance decrease Year-on-year Planned rate Tangible fixed assets 13,442 11,68
Slide 8: Balance Sheet
Balance Sheet (For the FY Ended March 2020) FY ended March 2019 FY ended March 2020 Increase/ Year-on- Breakdown of As of March 31,2019 As of March 31,2020 Unit: million yen decrease y ear main increases and decreases Cash and deposits ＋1,136 Current assets 84,647 80,322 -4,324 94.9% Notes and accou
Slide 9: Cash Flows
Cash Flows (For the FY Ended March 2020) Results for Full year FY ended March 2019 FY ended March 2020 Unit: million yen Performance Performance Breakdown of Main Items Income before income taxes 15,972 Depreciation 13,532 Increase in notes and accounts receivable-trade 4,272 CF from operating activ
Slide 10: Plan for the Fiscal Year Ending March 2021
Plan for the Fiscal Year Ending March 2021 FP Corporation ・
Slide 11: Outline of Plan for Account Settlement
Outline of Plan for Account Settlement (For the FY Ending March 2021 ) Results for Full year Full year projections First half projections FY ended March 2020 FY ending March 2021 FY ending March 2021 increase/ Year-on increase/ Year-on Unit: million yen Performance percentage Planned percentage decr
Slide 12: Outlook for Increase/Decrease in Ordinary Profit
0 Outlook for Increase/Decrease in Ordinary Profit 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 (For the FY Ending March 2021) Outlook( May 8 2020) Fiscal Year ended March 2020 16.27 Unit: billion yen 1st half 7.44 2nd half 8.83 1st half 2nd half The Price of +1.60 Material * Including th
Slide 13: Planned Capital Investment and R&D Cost
Planned Capital Investment and R&D Cost (For the FY Ending March 2021) Results for Full year Full year projections First half projections FY ended March 2020 FY ending March 2021 FY ending March 2021 Increase / Increase / Progress Unit: million y en Performance Planned decrease Year-on-year Planned
Slide 14: To Increase Corporate Value
To Increase Corporate Value President Morimasa Sato
Slide 15: Market Conditions
Market Conditions ia Ize
Slide 16: Impact of COVID-19: Changes in Retailing
Impact of COVID-19 Coronavirus: Changes in Retailing From eating out to From food sold loose to home meal replacement and cooking at home food sold in packages Food sold loose Eating out Scaled down Reduced Home meal replacement Cooking at home Home delivery Food sold in packages and takeout meals I
Slide 17: Impact of COVID-19: Trend in Container Demand
Impact of COVID-19 Coronavirus: Trend in Container Demand Up Down Containers that are easy to open and close Increased opportunities to → Addressing the labor shortage cook at home Snap-lock hood pack Ready-to-cook meat Items for picnics and events Leak-proof/insulating A solution to food loss Conta
Slide 18: Tackling COVID-19: Supporting Food Lifestyles
Tackling COVID-19 Coronavirus: As a Company Supporting Food Lifestyles Ensuring safety and reassurance Protecting food from bacteria and viruses in the air Stable supply of products Teleworking In-house Remaining logistics ready to - EDI rate: Approx. As98.4 % of March 2020 97.4% accept As of March
Slide 19: Trend in Raw Material Prices
Trend in Raw Material Prices Domestic price of general polystyrene April 2018 February 2017 January 2019 203 January 2018 204 197 July 2017 195 July 2019 April 2020 185 185 April 2019 179 April 2016 May 2018 172 163 160 Expected to start April 2018 January 2019 declining in 2Q Domestic price of gene
Slide 20: Changes in the Number of Households
Changes in the Number of Households One-person households Couple-only households Ratio of households with Households of single parents with children Households of couples with children one person and couples Other general households 0 10,000 20,000 30,000 40,000 50,000 aged 65 or older 2015 Couple-o
Slide 21: Trend in Scale of Home Meal Replacement Market
Trend in Scale of Home Meal Replacement Market Trillion yen 10.3 10 10.1 9.6 9.8 FY2018 Cooking at home: 9.3 8 8.4 8.7 8.9 Approx. 35.3 trillion yen 7.2 7.6 7.8 7.9 8.2 8.1 8.1 Home meal 6 Eating out: replacement Approx. 25.6 trillion yen 4 Approx. 2 10.3 trillion yen Major food manufacturers 0 2004
Slide 22: Expanding Market
Expanding Market Net sales of the FPCO Group Convenience Food manufacturers Food service/Nursing-care Mostly supermarkets stores (for home meal replacement) facilities Prepared food stores Restaurants (home delivery/takeout meals) Frozen food manufacturers Trays with lids Containers for food service
Slide 23: FPCO Fair: Balancing Effort and Efficiency
FPCO Fair: Balancing Effort and Efficiency (Supermarkets) The event was cancelled, We only set up the item exhibit for the photo shoot. We will later make proposals to customers individually. Balancing effort and efficiency Pursuing the appeal of products Containers’ efficiency-improvement prepared
Slide 24: Home Delivery as a New Market
Home Delivery as a New Market Joint development of DLV Men, special containers for delivery Lid Home Inner tray (For noodles and toppings) delivery Main body (For soup) 2 features that make the container Expanding steadily since launch ideal for delivery (1) A 3-layer structure that (2) A reliable c
Slide 25: Hospital/Nursing Care and Frozen Food as New Markets
Hospital/ Nursing Care and Frozen Food as New Markets MFP that ensures safety and reassurance when Hospital/ Frozen heating the food Nursing food With superior thermal insulation, MFP ensures care safety and The number of people who reassurance received Minna-no Nichiyobi (Sunday for Everyone) food
Slide 26: Actions for Recycling
Actions for Recycling ia Ize
Slide 27: Ocean Plastic Pollution: Trends in the World and Japan
Ocean Plastic Pollution: Trends in the World and Japan Global trends Trends in Japan Notification of waste import restrictions 2017 China to WTO 2018 G7 Ocean Plastics Charter Comprehensive strategy for plastic 2019 MOE material recycling (Excerpt of milestones) - Reusing and recycling 60% of contai
Slide 28: Preventing Inputs of Plastics from Land into the Ocean
Necessary Measure: Preventing Inputs of Plastics from Land into the Ocean Ranking of countries in the inputs of plastic waste from land into the ocean (2010 estimate) 1st: China 1.32- 3.53 mn tons/year 2nd: Indonesia 0.48- 1.29 mn tons/year 3rd: Philippines 0.28- 0.75 mn tons/year 4th: Vietnam 0.28-
Slide 29: Issues to Be Considered Separately
Issues to Be Considered Separately Alternatives to the Ocean plastic use of petrochemical pollution materials CO2 reduction Non-industrial waste Industrial waste 29
Slide 30: Issues to Be Considered Separately (1)
Issues to Be Considered Separately (1) Alternatives to the Ocean plastic use of petrochemical pollution materials CO2 reduction Bio-PE and bio-PET are no different from petrochemical- derived PE and PET. → They are not a solution to ocean plastic pollution. With some exceptions, biodegradable plasti
Slide 31: Issues to Be Considered Separately (2)
Issues to Be Considered Separately (2) Non-industrial waste Industrial waste Non-industrial waste is treated appropriately by municipal governments. Incinerated together with food waste → Efficient use of heat is an issue. The problem is industrial waste. 31
Slide 32: Recycling of Plastics from Household Waste
Recycling of Plastics from Household Waste (Non-Industrial Waste) Single PET bottles material Material recycling Approx. [Recycling of materials] 0.75 mn tons Food containers Approx. 0.8 mn tons Thermal recycling [Thermal recovery] Soft packaging Approx. 3.0 mn tons Composite material 32
Slide 33: FPCO Method of Recycling
FPCO Method of Recycling Packaging material Consumers Supermarkets wholesalers History Initially Collection Replacement of bases 1980 1990 Garbage problem in Hiroshima containers with paper packages Boycott against McDonald’s in the U.S. 6 stores 1990 Launch of recycling with FPCO method Approx. 199
Slide 34: Activities for Promoting Recycling
Activities for Promoting Recycling Poster Number of stores at which the poster is displayed 8000 7000 6000 5000 Poster displayed at 4000 3000 approx. 7,272 stores 2000 (by 205 companies as of end of March 2020) 1000 0 企業名 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Feb Mar Sticker Bagging area 3
Slide 35: Collection of Plastic Resources
Collection of Plastic Resources * The corresponding values for the number of containers and bottles were calculated based on the following standard weights. Amount (number) of recycled containers/bottles Foam tray: approx. 4 grams; transparent container: approx. 10 grams; PET bottle: approx. 25 gram
Slide 36: Eco Tray / Eco APET CO2 Reduction
Eco Tray / Eco APET CO2 Reduction CO2 emissions Eco Tray Eco APET 6.54 4.94 Eco Tray Material manufacturing 4.58 Material Material manufacturing 3.45 manufacturing Material manufacturing Product Product Eco APET manufacturing manufacturing Product Product manufacturing manufacturing 0.63 0.63 Distri
Slide 37: Investment in Recycling and Ratio of Eco Products
Investment in Recycling and Ratio of Eco Products Eco OPET developed Sales shares of eco products 700 600 Eco product sales Percentage of products that for FY ended March 2020 are FPCO eco products Eco APET released 500 58.5 billion yen Eco Trays only Company S in Kansai 78% 400 Company I in Kansai
Slide 38: Increasing Recycled PET Capacity with a New Plant
Increasing Production Capacity of Recycled PET with a New Plant 4th PET bottle recycling plant planned to be constructed in Hyogo Location: Hyogo Ono Sangyo Danchi (Hyogo Ono Industrial Park), Ono, Hyogo Pref. Site area: Approx. 48,000 m2 East Japan Hub Center Kanto Recycling Plant Total production
Slide 39: Creation of the FP Corp. Environmental Fund
Creation of the FP Corp. Environmental Fund Before: Activities were carried out Now: Companies and organizations should on a company-by-company basis. work together. FPCO, since it started the Working with other FPCO method of recycling companies, NPOs, research in 1990, has been engaged and educati
Slide 40: External Evaluation
External Evaluation The FPCO method of Tray to Tray recycling was showcased on JAPANGOV, a social media account of the Prime Minister's Official Residence targeting overseas audiences. Facebook ◇和訳 広島に本社を置く日本のプラスチック食品容器製造のリーディングカンパニーであるエフピコは、 1990年代前半に循環型リサイクルの先駆けとなった。 同社は工場からスーパーマーケットまでの循環型リサイクルのサプ
Slide 41: External Evaluation: Recent TV Programs
External Evaluation: Recent TV Programs that Showcased FPCO Content Month Program Recycling Containers’ features Namakara Sozai Mar. Fuji TV Mezamashi TV 〇 NHK Asaichi 〇 TBS N-Sta 〇 Jun. Kansai TV Uramayo 〇 〇 Chukyo TV Catch! 〇 FBS (Fukuoka Broadcasting Systems) Barihaya! ZIP 〇 Jul. Yamagata Broadca
Slide 42: Streamlining of Logistics, Manufacturing, and SCM
Streamlining of Logistics, Manufacturing, and SCM
Slide 43: Soaring Logistics Expenses
Soaring Logistics Expenses Ratio to sales price: Comparison of Distribution cost per case private and regular services Regular 105% Private Ratio to sales price: 112% Year-on-year 4% 102% Difference: 11 percentage points Regular Ratio to sales price: 15% Private Ratio between private and regular ser
Slide 44: Efficiency Improvement (Logistics Division)
Efficiency Improvement (Logistics Division) Voice Picking Items/Hour Productivity enabled by voice picking Mar. 2020 843 items per hour Immediately after introduction of the system: 300 items per 1) Listen to instructions hour 2) Select with both hands Jan. Jan. Jan. Jan. Jan. Jan. Jul. Jul. Jul. Ju
Slide 45: Actions for Suppressing Soaring Logistics Expenses
Actions for Suppressing Soaring Logistics Expenses (Distribution of Sales) Increase load efficiency per truck Increase ratio of private services March 2019 March 2020 FY2020 Up 8.1% from FY2015 level 97.2% 97.4% (Sai* per truck) * 1 sai = 0.027826474 m 3 97.4% 2.6% 1,430 1,418 1,415 1,406 1,418 1,41
Slide 46: Enhancing the Logistics Network
Enhancing the Logistics Network Kyushu Completion scheduled in Sept. 2020 Fukuyama Completion scheduled in Nov. 2020 Investment: 659 million yen Investment: 4,345 million yen Distribution Center Distribution Center Total floor area: 3,554 m2 Total floor area: 23,722 m2 Introducing an automated sorti
Slide 47: Natural Disasters and BCP
Natural Disasters and BCP Most recent natural disasters Business Continuity Plan (BCP) Hokkaido Eastern Iburi for uninterrupted logistics operations Earthquake in September 2018 Hokkaido in the event of a disaster Emergency off-grid power system activated ⚫ Power supply for 72 hours ensured ⚫ Emerge
Slide 48: Investment in Human Resources
Investment in Human Resources
Slide 49: Investment in Human Resources (1): Automation
Investment in Human Resources (1): Automation Manufacturing Division Logistics Division Labor reduction Reducing labor with equal to approx. Unmanned transfer on the unmanned, laser-guided 213 workers same floor in a warehouse, operations for transferring Labor reduction equal to approx. 3/2021 fore
Slide 50: Investment in Human Resources (2): Working Environment
Investment in Human Resources (2): Development of Working Environment Pico House bachelors’ Group homes for people with dormitories disabilities Completed in March 2020 No. 3 Completion scheduled in No. 4 Completion scheduled Floor plan: First floor 20 units 63 units October 2020 18 units in April 2
Slide 51: Diversity Management Making Maximal Use of Capabilities
Diversity Management Making Maximal Use of Capabilities Sorting of used trays Production of wood-like box-type Manufacturing of containers at 10 facilities containers and secondary (foamed and transparent) processing at 7 facilities at 3 facilities Recognition concerning In the FPCO Group as of Marc
Slide 52: Support for Customers in Employing People with Disabilities
Support for Customers in their Employment of People with Disabilities With FPCO’s support, employment was created for 667 people at 50 locations mainly at customers’ workplaces As of the end of March 2020 Seasoning prepared meat Processing agricultural products Inspecting and weighing fruits and Pro
Slide 53: Floor Hockey Activity
Floor Hockey Activity: Interactions between People with and without Disabilities Award, certification, and registration for Floor Hockey Activity ◼ Mar. 2019 (Tokyo Metropolitan) Barrier-free Minds Support Company Registration ◼ Dec. 2018 (Japan Sports Agency) Sports Yell Company Certification ◼ Nov
Slide 54: External Evaluation
External Evaluation Selected for the first time as a constituent of the FTSE4Good Index Series and FTSE Blossom Japan Index, which are ESG indexes Indexes developed by FT Russel of the London Stock Exchange Group, which reflect the performance of companies taking excellent Environmental, Social and
Slide 55: External Evaluation
External Evaluation FPCO wins the Japan Times Satoyama & ESG Awards 2019 A program that commends companies and organizations which have made remarkable achievements in promoting and spreading effective use of satoyama (woodlands near villages) and satoumi (coastal areas where biological productivity
Slide 56: Growth Strategy
Growth Strategy
Slide 57: Start of Operation for the New Business Model
Start of Operation for the New Business Model Product purchase Group’s wholesalers MD Strength in locally Selecting items, consolidating based sales inventory, enhancing lineup of private brand (PB) products FPCO International FPCO Trading FPCO Group’s Package FPCO Ueda 26,127 FPCO Ishida 16,688 inf
Slide 58: Pack Market, an E-Commerce Site for Packaging Materials
Pack Market, an E-Commerce Site for Packaging Materials FPCO Group’s infrastructure Expanding steadily since launch Apr. 2020 Pack Market sales performance Approx. 30 million yen (forecast) E-commerce site Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Products with growing demand due to the impact of the
Slide 59: Capital Investment and Cash Flows
Capital Investment and Cash Flows Cash flows from operating activities Billion yen 0.15 12.8% 12.5% 12.0% 12.0% 11.5% 10.1% Capital investment: 10.6% 8.9% 9.4% 0.1 ROE Goal of 18 to 20 billion yen 9.1% 7.8% 7.7% Enhance the system for supplying high value-added products from the perspective of mediu
Slide 60: Growth Strategies of FPCO
Growth Strategies of FPCO Considering overseas expansion Considering M&A Long-term plan Net sales: ¥300 bn Growth strategy 2 Ordinary profit: ¥30 bn (Net sales) Billion yen Home delivery market Frozen food market (Ordinary profit) 300 Markets of materials and 30 consumables 250 Growth Strategy 1 25
Slide 61: To Increase Corporate Value
To Increase Corporate Value “We ensure that we reliably deliver the most environmentally friendly products of the highest quality at the most competitive prices whenever they are needed.” Hardware Software Balance People We adhere to the FPCO-DNA and continue to make proposals with the foresight of
Slide 62: Supporting Data
Supporting Data FP Corporation ・
Slide 63: Explanation of terms
Explanation of terms PS ： Polystyrene PET ： Polyethylene terephthalate PP ： Polypropylene Multi FP (MFP) ： An formed PS (polystyrene) container with cold and heat resistance to temperatures between -40ºC and +110ºC and with superior oil and acid resistance and thermal insulation (sales commenced in
Slide 64: World's First Sheets and Materials
World’s First Sheets and Materials Evolution from a sheet processing manufacturer PP: polypropylene PS: polystyrene PSP: foamed polystyrene Easy to mold Heat-resistant: +110ºC Low raw material ratio High oil resistance Weight reduction is possible Foam is hard and resistant to High ins
Slide 65: Trends in original products development
Trends in original products development ’11/3 ’12/3 ’13/3 ’14/3 ’15/3 ’16/3 ’17/3 ’18/3 ’19/3 ‘20/3 Feb. 2010: Market release of the Multi FP (MFP) Feb. 2012: Market release of the Multi Solid (MSD) May 2012: Market release of the Eco APET Nov. 2010 Jun. 2014 March 2016 Chubu PET Recycling Plant Nis
Slide 66: Factors influencing Ordinary Profit
Factors influencing Ordinary Profit Unit:100 million yen '15/3 '16/3 '17/3 '18/3 '19/3 '20/3 '21/3 Plan '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full half half year half half year hal
Slide 67: Trends in Capital Investment and R&D Costs
Trends in Capital Investment and R&D Costs FY ending FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended FY ended March 2021 March 2003 March 2004 March 2005 March 2006 March 2007 March 2008 March 20
Slide 68: Strategy for Plastic Material Recycling by the Ministry of the Environment
Strategy for Plastic Material Recycling by the Ministry of the Environment (Rough Plan) Strategy for Plastic Material Recycling Ocean Plastics Charter endorsed at by the Ministry of the Environment Charlevoix G7 Summit in Canada (Rough Plan): Milestone We aim to reduce emissions of single-use plasti
Slide 69: Collaboration with Related Ministries, Agencies and Organizations
Collaboration with Related Ministries, Agencies and Organizations Actions of related ministries, agencies and organizations FPCO’s involvement ● Plastic resources recycling strategy Participation in a subcommittee as an industrial Presentation on Japan’s plastic resource recycling strategy planned
Slide 70: Information on the Facility Tour
【 Information on the Facility Tour 】 Contact: Takashima at the Corporate Planning Department (TEL)+81-3-5325-7756 (MAIL)ir_7947@fpco-net.co.jp at a convenient time for you. An opportunity to take a look at the state-of-the-art Production, Distribution, Recycling operations Kanto 30 minutes from Koga