FP Corporation · TSE:7947
FP — FY2017 Earnings Presentation
48 slides from FP's earnings presentation, May 12, 2017
Slide 1: Financial Results for the fiscal year ended March 2017
Financial Results for the fiscal year ended March 2017 FP Corporation May 12, 2017 FP Corporation ・
Slide 2: Table of Contents
= Table of Contents = Results and Plan Head of Finance and Accounting Division Isao Ikegami ... 3 For Expansion of Corporate Value President & COO Morimasa Sato . . . 13 Supporting Data . . . 39 Cautions for Handling This Material We have paid extremely close attention to the information provi
Slide 3: Consolidated Financial Results for the fiscal year ended March 2017
Consolidated Financial Results for the fiscal year ended March 2017 Head of Finance and Accounting Division Isao Ikegami FP Corporation 3・
Slide 4: Financial Results Summary
Financial Results Summary (Results for the FY ended March 2017 ) Record high Results for Full year Full year projections FY ended March 2016 FY ended March 2017 FY ended March 2017 ✔Highest sales and Increase / Year-on- Progress Unit:million yen P erformance Percentage P erformance Percentage decrea
Slide 5: Increase/Decrease in Ordinary Profit
Increase/Decrease in Ordinary Profit (Results for the FY ended March 2017 ) Unit: billion yen Fiscal year ended March 2016 14.03 1st half 2nd half First half 6.63 Second half 7.40 Difference from Price fell from1Q to 3Q ＋2.6 the projection （Before rearrangement） ＋０.７５ Price increased in 4Q -0.3 Raw
Slide 6: Capital Investments and R&D cost
Capital Investments and R&D cost (Results for the FY ended March 2017 ) Results for Full year Full year projections FY ended March 2016 FY ended March 2017 FY ended March 2017 Increase / Year-on- Progress Unit : million y en Performance Performance decrease year Planned rate Tangible fixed assets 23
Slide 7: Balance Sheet
Balance Sheet (Results for the FY ended March 2017 ) Previous consolidated fiscal Consolidated fiscal year under review year FY ended March 2016 FY ended March 2017 Increase/ Year-on- ( As of March 31,2016 ) ( As of March 31,2017 ) Breakdown of main increases and decreases Unit: million y en decreas
Slide 8: Cash Flows
Cash Flows (Results for the FY ended March 2017 ) Results for Full year FY ended March 2016 FY ended March 2017 Unit: million y en Performance Performance Breakdown of Main Items Profit before income taxes 15,591 Depreciation 11,183 CF from operating activities 20,832 25,912 Decrease in notes and ac
Slide 9: Plan for the fiscal year ending March 2018
Plan for the fiscal year ending March 2018 FP Corporation ・
Slide 10: Outline of Plan for Account Settlement
Outline of Plan for Account Settlement (Plan for the FY ending March 2018 ) Results for Full year Full year projections First half projections FY ended March 2017 FY ending March 2018 FY ending March 2018 Unit:million yen Performance Percentage Planned Percentage Increase /decrease Year-on- year Pla
Slide 11: Planned Increase/Decrease in Ordinary Profit
Planned Increase/Decrease in Ordinary Profit (Plan for the FY ending March 2018 ) Unit: billion yen 1st half ¥7.91bn 2nd half ¥7.83bn 1st half 2nd half FY ended Mar. 2017 ¥15.74bn The Price of material ―2.7 -1.6 , -1.1 －１.２ Raw Materials －０.１ +0.4 , +2.2 ＋１.１ Sales Price (Naphtha Formula) +2.6 Origi
Slide 12: Planned Capital Investment and R&D Cost
Planned Capital Investment and R&D Cost (Plan for the FY ending March 2018 ) Results for Full year Full year projections First half projections FY ended March 2017 FY ending March 2018 FY ending March 2018 Unit : million y en Performance Planned Increase /decrease Year-on- year Planned Increase /dec
Slide 13: To Increase Corporate Value
To Increase Corporate Value President and COO Morimasa Sato FP CORPORATION FP corporation 13
Slide 14: Market Conditions
Market Conditions マーケットの状況 Circumstances surrounding the retail industry Stagnation of consumer Labor shortage and spending and growing trend soaring labor costs to cut back on consumption ●Increasing the value of goods ●Improve workability in stores ●Shifting to packaging outside stores FP Corporat
Slide 15: Home Meal Replacement (HMR) Market: Today and Tomorrow
Home Meal Replacement (HMR) Market: Today and Tomorrow Number of households Total number of households Single-person households + married couples only Single-person households Peak in 2019 Peak in 2019 Peak in 2030 Source: Created by FP Corporation on the basis of data from the National Institute of
Slide 16: Home Meal Replacement (HMR) Market: Today and Tomorrow
Home Meal Replacement (HMR) Market: Today and Tomorrow HMR Market Size 9,260.5 10,000 8,896.2 9,588.1 8,713.2 9,000 8,215.6 8,123.8 8,357.8 7,812.9 7,949.1 8,054.1 8,000 7,580.4 7,189.7 Up 902.7 billion yen 7,000 (or 10.8%) from three years earlier 6,000 5,000 4,000 3,000 Up 1,206.4 billion yen (or
Slide 17: Shift from cooking-at-home and eating-out to the HMR market
Home Meal Replacement (HMR) Market: Today and Tomorrow Shift from the cooking-at-home and eating-out markets to the HMR market Entry of major food manufacturers Major food manufacturers Cooking at home HMR Eating out Approx. 35 Approx. 9.5 Approx. 24 trillion yen trillion yen trillion yen - Increase
Slide 18: A Proposal for deliciousness: Utilizing inner trays
Capabilities for Development and Proposals to Create Markets “A Proposal for deliciousness” Utilizing inner trays Bento meals and ready-made food Salads Bringing the good flavors of fresh meals home Maintaining freshness Expanding the scope of recipes that may be offered Using value-added food items
Slide 19: A proposal for deliciousness
Capabilities for Development and Proposals to Create Markets “A proposal for deliciousness” Entrenching the microwave market Microwavable Making the dedicated selling space permanent Original Products Micro- wavable MFP Delivering the taste of fresh food ingredients ●From -40ºC to +110ºC ●Thermal in
Slide 20: Solutions to Problems Facing Stores: Containers' functions to cover labor shortage
Solutions to Problems Facing Stores: Containers’ functions to cover labor shortage Easing workload in Responding to complaints Shifting to package outside stores and stores about holes strengthening ready-made food plants Workload reduced with Outstanding easy fitting for oil resistance Releasing se
Slide 21: Utilizing containers in the fruit and vegetables section
Solutions to Problems Facing Stores: Containers’ functions to respond to labor shortage Utilizing containers in the fruit and vegetables section The FP Fruit Series The VegeBox Series Before After Enhanced display efficiency Reduction of workload when shelf stocking The Fuwarito Series The STR Serie
Slide 22: Trends of Capital Investment
Trends of Capital Investment Continuing to make investments aimed at increasing corporate value Results Plan 実績 計画 (billion yen) 2012/3期 2013/3期 2014/3期 2015/3期 2016/3期 2017/3期 Six periods 6期 total計 2018/3期 累計 単位：億円 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 Total sum 製 造 Production 60 6.0 59
Slide 23: Boosting the production capacity of original products
Capital Investment > Products 49.4 billion yen invested in manufacturing over a six-year period Boosting the production capacity of original products 2010 2011 2012 2013 2014 2015 2016 2017 MFP Sales for 2017/3: 13.5 billion Feb. 2010: Market release of the Multi FP (MFP) (up 33.1% year on year) Feb
Slide 24: Sales Shares of Original Products
Capital Investment > Products 41.8 billion yen invested in manufacturing over a six-year period Sales Shares of Original Products Conventional materials Conventional materials Full-year Plan for 2018/3 results (70% in the same period New products 76% a year earlier) made of conventional materials* 6
Slide 25: Kanto Eco PET Plant: Completion scheduled in August 2017
Capital Investment > Products Kanto Eco PET Plant: Completion scheduled in August 2017 Towards securing Eco PET material supply Kanto Recycling Center capacity of 50,000 tons across the country East Japan Hub Center Kanto Yachiyo Plant Kanto Eco PET Plant Kanto Eco PET Plant Chubu Eco PET Plant 20,0
Slide 26: Integrated line from PET bottle bales to Eco PET products
Capital Investment > Products Kanto Eco PET Plant: Completion scheduled in August 2017 An integrated line from PET bottle bales to manufacturing of Eco PET products Collection Recycling (PET bottle bales) (Recycled PET pellets) Eco APET sheet extrusion VRV sheet structure Recycled materials Extrudin
Slide 27: Recycling of Terrestrial Resources - in response to the Paris Agreement
Recycling of Terrestrial Resources - in response to the Paris Agreement Choose Now for Future Eco Tray Eco APET CO2 reduction effect: CO2 reduction effect 2017/3 CO2 emissions cut by 110,000 tons a year (Eco Tray: 45,000 tons / Eco APET 66,000 tons) * Comparison between FPCO’s virgin products and ec
Slide 28: Automation: PSP Container Production Process
Capital Investment > Products Automation ■PSP Container Production Process Lamination 成形 Forming Cutting Packaging Remnants To recycling Film Upper Mold Automated Heating Metal Detector Raw material Film Lower Mold Blade Packaging Stacking in bags Packaging in cases Packaging in Packaging in Ejectio
Slide 29: Automation: Introduction plan until March 2018 and its effect
Capital Investment > Products Automation: Introduction plan until March 2018 and its effect 21 8 Automatic dedusting 22 4 Automatic case Automated packing systems Case packing robots and packaging systems transport systems 3 systems to be added None to be added 13 robots to be added 4 systems to be
Slide 30: Capital Investment > Logistics
Capital Investment > Logistics 34.1 billion yen invested in logistics over a six-year period Curbing increases in logistical costs and ensuring stable supply 2011 2012 2013 2014 2015 2016 2017 Emergency power Chubu expansion Kyushu expansion Fukuyama XDC generating equipment Streamlining of work ins
Slide 31: Construction of a system with greater speed and accuracy (1)
Capital Investment > Logistics Construction of a system with greater speed and accuracy (1) Vehicle allocation planning system (Route Planner) (2) Delivery status check system (RD Check System) Trend in load (in volume units*) for shipping sold items per truck (* One volume unit equals nearly 0.28 c
Slide 32: Construction of a system with greater speed and accuracy (2)
Capital Investment > Logistics Construction of a system with greater speed and accuracy 800.0 705 units <Productivity in voice picking> per hour (3) Voice Picking 700.0 Units per hour 600.0 500.0 400.0 Kansai 300 Hachioji Ibaraki Kanto 300.0 Fukuyama Chubu Kyushu 200.0 Feb. Sep. Feb. Sep. Feb. Apr.
Slide 33: Effect of voice picking
Capital Investment > Logistics Construction of a system with greater speed and accuracy Effect of voice picking measured in the year-end busy season (million) (Units per hour Number of units shipped during the period per person) Shipping productivity 7,750 7.75 77.5 7.50 units 7,500 million 75.0 7.2
Slide 34: Business Continuity Plan (BCP)
Business Continuity Plan (BCP) “Ensuring stable supply in the event of disaster” All the 21 logistical bases in the country are equipped with emergency power generation systems. DC: Distribution Center PC: Picking Center Fuel in stock for ensuring power supply for 72 hours PW: Plant Warehouse To
Slide 35: Capital Investment > Film Plant and Film Printing Plant
Capital Investment > Film Plant and Film Printing Plant Cross-section view Sheet Film Film Plant FPCO ALRight Co., Ltd. Completion scheduled in January 2018 Location: Kasaoka, Okayama Prefecture Investment: 2.5 billion yen Film Printing Plant FPCO Gravure Co., Ltd. Completion scheduled in April 20
Slide 36: Securing staff with Pico House Nos. 1 and 2
Capital Investment > Securing staff with Pico House Nos. 1 and 2 No. 1: Completion in Jan. 2017 No. 2: Completion in Mar. 2017 Location: Chikusei, Ibaraki Prefecture Location: Wanouchi-cho, Ampachi-gun, Gifu Prefecture Three floors above ground Four floors above ground Total floor area: 1,700 tsubo
Slide 37: For Expansion of Corporate Value: Strategic investment
For Expansion of Corporate Value Strategic investment for one step further Hardware Software System / Technology Operation R&D FPCO-DNA Human Information 37
Slide 38: Towards an ordinary profit target of 20 billion yen
Towards an ordinary profit target of 20 billion yen >> Product Strategy >> Strategic Investments > Establish a market of microwavable products > Recycle terrestrial resources - Propose deliciousness with the use of original products and - Kanto Eco PET Plant – completion due in August 2017 inner tra
Slide 39: Supporting Data
Supporting Data FP Corporation ・
Slide 40: 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. Multi Solid (MSD) ：
Slide 41: Raw Material Trends
Raw Material Trends FY ended Mar 2016 No obvious price competition Prices revised in line with naphtha in FY ended Mar 2014 some cases Even with companies announcing revised FY ended Mar 2015 prices, other companies increased Other companies again announced volumes revised prices Continued
Slide 42: 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 43: Factors influencing Ordinary Profit
Factors influencing Ordinary Profit Unit:100 million yen '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 Plan '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full half half ye
Slide 44: Trends in Capital Investment and R&D Costs
Trends in Capital Investment and R&D Costs FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ending FY ending 2003 2004 2005 2006 2007 20
Slide 45: Diversity Management
Diversity Management Operations in which disabled people participate actively FP Corporation's disability employment spreads across the country 6 in-house locations Sorting Center: 9 locations 3 locations with business alliance partners Matsumoto SC Nishinomiya SC Ai Pack Hokkaido Kanazawa SC
Slide 46: Initiatives to Market
Initiatives to Market Products Market size: ¥500 billion Goods Market size: Over ¥2.5 trillion Containers for simple packaging Supplies and packaging materials/equipment In stores Packaging outside stores Retail / Ready-made Meals / Restaurant Dining Agricultural Processed Fresh fish Livestock Prepa
Slide 47: Medium-Term Targets
Ordinary Medium-Term Targets Margin: 12% Increase market share in the market of 500 billion yen + Create new markets Products: Products sales 200 bn. 133 The world’s first sheet material 118.4 122.2 126.3 127.9 Continuous release of new products ☆ Expansion of catering market Global market I
Slide 48: 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