Sti Foods Holdings, Inc. · TSE:2932
Sti Foods — Q1 2021 Earnings Presentation
30 slides from Sti Foods's earnings presentation, May 17, 2021
Slide 1: Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 31, 2021
Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 31, 2021 Second Section of the Tokyo Stock Exchange (Securities Code: 2932) May 17, 2021
Slide 2: Summary of results for the first quarter
Summary of results for the first quarter of the fiscal year ending December 31, 2021
Slide 3: First quarter consolidated results
First quarter consolidated results Net sales Ordinary income Net income 5,905 million yen 450 million yen 303 million yen Both net sales and profits were generally steady compared to the initial plan • Sales of chilled prepared foods such as grilled fish and cup salad, which are mainstay products, c
Slide 4: First quarter consolidated results and trends in quarterly results
First quarter consolidated results and trends in quarterly results Grew YoY due to the spread of nesting consumption as a result of the new normal and increased production capacity. Net sales Ordinary Ordinary (Unit: million yen) Net sales income income ratio 6,334 YoY comparison 6,021 5,525 5,905
Slide 5: Consolidated statement of income (summary)
Consolidated statement of income (summary) Fiscal year ending Fiscal year ending December 31, 2021 December 31, 2021 (Unit: million yen) 1Q Progress Full-year forecast Results Despite refraining from launching new hot menu items, Net sales 26,000 5,905 22.7% sales of chilled prepared foods remained
Slide 6: Consolidated balance sheet (summary)
Consolidated balance sheet (summary) Fiscal year ended Fiscal year ending December 31, 2020 December 31, 2021 4Q 1Q (Unit: million yen) Results Change Results Total assets 11,324 9,967 (12.0%) Current assets 6,775 5,447 (19.6%) Of which, cash and deposits 2,598 1,491 (42.6%) Non-current assets 4,548
Slide 7: Initiatives for the current fiscal year and full-year earnings forecast
Fiscal year ending December 31, 2021 initiatives for the current fiscal year and full-year earnings forecast
Slide 8: Business forecast for the fiscal year ending December 31, 2021
Business forecast for the fiscal year ending December 31, 2021 Maintain net sales growth 12.7% increase Thorough manufacturing of quality products / Strengthen product development / Strengthen purchasing system / Increase production capacity / Sales channel expansion strategies (including M&A) Ordin
Slide 9: Executive summary (business environment and initiatives for the current fiscal year)
Executive summary (business environment and initiatives for the current fiscal year) Business environment (1) Nesting consumption as a result of the new normal has taken root (2) The reemergence of COVID-19, including mutated strains, has placed a management burden on the Group's production sites fo
Slide 10: Progress of investment plan
Progress of investment plan Investment items Plan 1Q results Establishment of a new plant 350 million yen ー million yen in the Kinki region Sales Expansion of production improvement 267 million yen 107 million yen facilities at existing plants measures Expansion of employee 197 million yen 27 millio
Slide 11: Market environment for convenience stores / Sales volume trends of grilled fish products
Market environment for convenience stores / Sales volume trends of grilled fish products for Seven-Eleven While growth in rice products declined, growth in bagged prepared foods continued to increase <Growth rate by CVS delicatessen category (from 2016)> <Sales volume trends of grilled fish products
Slide 12: Strengthening of production capabilities
Initiatives from the fiscal year ending December 31, 2021 Topics (1) Strengthening of production capabilities STI Miyagi (Ishinomaki, Miyagi Prefecture) Reduce resource losses by effectively utilizing fresh marine resources in Ishinomaki and other parts of the Tohoku region Start manufacturing f
Slide 13: Reduction in logistics costs through appropriate allocation of production plants
Initiatives from the fiscal year ending December 31, 2021 Topics (2) Reduction in logistics costs through appropriate allocation of production plants Tohoku Area The Sanriku Coast Expressway is scheduled to be fully open to traffic by the end of this year Significant improvement in raw material proc
Slide 14: Opening of the e-commerce site for our own brand
Initiatives from the fiscal year ending December 31, 2021 Topics (3) Opening of the e-commerce site for our own brand (start on June 1) Special brand of large and high-grade fish for fish lovers who find it difficult to find products at retail stores due to product selection difficulties Start B to
Slide 15: Growth vision
Growth vision Business expansion Raise barriers to entry and • Global expansion become an unparalleled • Improve manufacturing capacity food company • Strengthen product development capabilities • Expand sales channels Profitability improvement • Appropriate allocation of production Sources of growt
Slide 16: To our shareholders and investors
To our shareholders and investors Both net sales and ordinary income made steady progress in the first quarter compared to the forecasts Steady progress in growth strategies and achievement of the initial plan Trends in consolidated net sales Trends in consolidated ordinary income (Unit: million
Slide 17: Shareholder return policy
To our shareholders and investors: Shareholder return policy Basic policy We will provide stable and continuous dividends of surplus while taking into consideration the level of business performance, dividend payout ratio, and investment for sustainable growth ◆ Dividends of surplus [Results for fis
Slide 18: Appendix
Appendix
Slide 19: Company profile / business description
Company profile / business description Company profile Name of company STI Foods Holdings, Inc. Establishment November 2017 (founded in December 1988) 1-15-14, Minami Aoyama, Number of Headquarters 274 (including 711 temporary employees) Minato-ku, Tokyo employees * Temporary employees are those who
Slide 20: History
History 1988 2010 2017 2018 2020 Listed on the Second Section of Sept. 2020 the Tokyo Stock Exchange June 2020 Acquired all shares of Yamatomi Co., Ltd. Aug. 2018 Established STI Delica, Inc. Became a holding company through a share exchange Jan. 2018 for the purpose of business restructuring Establ
Slide 21: Management policy
Management policy Mission of STI Foods Holdings STI Foods Holdings will fulfill its responsibility to create a valuable food culture by respecting domestic and international food resources for the happiness of its employees and a more prosperous future for society. Company creed (the values that are
Slide 22: Group and production bases
Group and production bases The Group is formed of STI Foods Holdings, six consolidated subsidiaries and one non-consolidated subsidiary. Overseas Each plant has its own specialties and products, and by combining business them, the manufacturing system can handle any of the three bases temperatur
Slide 23: Strengths of the business (1)
Strengths of the business (1) In the fast-growing market for prepared foods, which surpassed 10 trillion yen in 2017, the Company is growing by expanding its production capacity and pursuing deliciousness and quality through its unique manufacturing technology and integrated production system. Man
Slide 24: Strengths of the business (2)
Strengths of the business (2) Strong relationship of trust with Seven-Eleven (Sales composition by sales destination) (Sales composition by product) Food ingredients Food Sales to Seven- 17% 3.8 products 18% Eleven billion yen 83% Frozen food products Room temperature foods 82% 4% Fiscal year ended
Slide 25: Strengths of the business (3)
Strengths of the business (3) Thorough temperature control and reduction in the number of thawing cycles in the integrated production (cooking) process to improve the quality of taste Manufacturing process for grilled fish prepared foods Pursuit of freshness and size Standard raw Temperature • S
Slide 26: Strengths of the business (4)
Strengths of the business (4) Reduce raw material costs by thoroughly addressing food loss with a product portfolio that uses up all ingredients. Integrated production system that achieves both deliciousness and reduced raw material costs Procurement Integrated manufacturing Packaging and shipping
Slide 27: Strengths of the business (5)
Strengths of the business (5) We constantly research new production methods, and develop marine food products with high barriers to entry. Three-step baking and gas substitution packing technology Grilled fish prepared foods Incorporating the taste of freshly grilled fish at home in a popular Ta
Slide 28: SDGs initiatives (1)
SDGs initiatives (1) Obtained MSC-CoC*1 and ASC-CoC*2 certification in June 2019 Ensuring sustainable raw material procurement Red salmon fishing in Bristol Working with MarineFarm on ASC-certified Healthy salmon fishery Chilean silver salmon Operate within the management area set by the Board
Slide 29: SDGs initiatives (2)
SDGs initiatives (2) Initiatives to extend the consumption period using unique packaging technology Initiatives to reduce fron gas in the manufacturing process Effective in reducing food loss, which is a Initiatives to reduce fron gas social issue Know-how on gas substitution packing technology
Slide 30: Precaution
[Precaution] The forward-looking statements contained in this document are based on management's assumptions and beliefs in light of the information currently available, and are subject to change due to macroeconomic conditions and industry trends. Accordingly, please be aware that there are risks a