Morinaga Milk Industry Co., Ltd. · TSE:2264
Morinaga Milk Industry — 1H FY2017 Earnings Presentation
24 slides from Morinaga Milk Industry's earnings presentation, November 2016
Slide 1: Financial Results Presentation - First Half of FYE March 2017
Financial Results Presentation ‐ First Half of the Fiscal Year Ending March 31, 2017 ‐ I. Overview of 1H of FYE March 2017 Financial Results II. Outlook of Financial Results for the Year Ending March 2017 III. Initiatives to Achieve the Business Plan for the Medium Term November 2016
Slide 2: I. Overview of 1H of FYE March 2017 Financial Results
I. Overview of 1H of FYE March 2017 Financial Results 2 Copyright © 2016 MORINAGA MILK INDUSTRY CO.,LTD.
Slide 3: Financial Results for 1H of FYE March 2017
Financial Results for 1H of FYE March 2017 (Unit: billion yen) 1H of 1H of Change from Year‐on‐Year Year on Year FYE March FYE March Initial Change (%) 2016 2017 Forecast Net Sales 323.3 315.7 ‐7.6 ‐2.4% +3.7 Operating Income 10.1 15.6 +5.5 +54.6% +4.1 Ordinary Income 10.6 16.1 +5.4 +51.0% +4.0 Prof
Slide 4: Net Sales & Operating Income by Business Field
Net Sales & Operating Income by Business Field (Unit: billion yen) Net Sales Operating Income 1H of FYE March 1Q Results 1H Results 1Q Results 1H Results 2017 Net Sales Year on Year Net Sales Year on Year Operating Year‐on‐Year Operating Year‐on‐Year Income Change Income Change B‐to‐B Business 22.8
Slide 5: Net Sales by Product Field in B-to-C Business
Net Sales by Product Field in B‐to‐C Business (Non‐consolidated) *Adjusted for change (%) is the % change after adjusting for the effect of transferring sales to subsidiaries in Kyushu. (Unit: billion yen) 1Q Results 1H Results 1H of FYE March 2017 Net Sales Year on Year *Adjusted for Net Sales Year
Slide 6: Highlights of the First Half
Highlights of the First Half [Operating income] Year‐on‐year change of +5.5 billion yen <Change from initial forecast of +4.1 billion yen> Increased sales volume (year‐on‐year change of +1.0 billion yen) <Change from initial forecast of +0.7 billion yen> Increase in sales volume of yogurt, ice cream
Slide 7: Factors Attributable to Increases and Decreases in Operating Income
Factors Attributable to Increases and Decreases in Operating Income Figures in the < > are changes from initial forecast figures. 1H of FYE March 2016 10.1 Increased sales volume +1.0 <+0.7> Improved product mix (PM) +0.9 <+0.6> Low‐cost operation +0.3 <+0.3> Streamlined sales promotion expenses +0.
Slide 8: II. Outlook of Financial Results for the Year Ending March 2017
II. Outlook of Financial Results for the Year Ending March 2017 8 Copyright © 2016 MORINAGA MILK INDUSTRY CO.,LTD.
Slide 9: FYE March 2017 Full-Year Business Forecasts
FYE March 2017 Full‐Year Business Forecasts (Unit: billion yen) FYE March FYE March Year‐on‐Year Year on Year Change from 2016 2017 Change (%) Initial Forecast Net Sales 601.5 593.0 ‐8.5 ‐1.4% +3.0 Operating Income 14.3 20.5 +6.2 +43.2% +4.1 Ordinary Income 15.0 21.0 +6.0 +40.4% +4.0 Profit attribut
Slide 10: Target Net Sales & Operating Income by Business Field
Target Net Sales & Operating Income by Business Field (Unit: billion yen) Net Sales Operating Income FYE March 1H Results Full‐year Target 1H Results Full‐year Target 2017 Operating Year‐on‐Year Operating Year‐on‐Year Net Sales Year on Year Net Sales Year on Year Income Change Income Change B‐to‐B B
Slide 11: Target Net Sales by Product Field in B-to-C Business
Target Net Sales by Product Field in B‐to‐C Business (Non‐consolidated) *Adjusted for change (%) is the % change after adjusting for the effect of transferring sales to subsidiaries in Kyushu. (Unit: billion yen) 1H Full year FYE March 2017 *Adjusted for *Adjusted for Net Sales Year on Year Net Sale
Slide 12: Outlook of Increases/Decreases in Consolidated Operating Income
Outlook of Increases/Decreases in Consolidated Operating Income (FYE March 2017) Figures in the < > are changes from initial forecast figures. FYE March 2016 14.3 Increased sales volume +1.2 <+0.7> Improved product mix (PM) +1.8 <+0.8> Low‐cost operation +0.6 <+0.3> Decreased raw material prices +3.
Slide 13: III. Initiatives to Achieve the Business Plan for the Medium Term
III. Initiatives to Achieve the Business Plan for the Medium Term 13 Copyright © 2016 MORINAGA MILK INDUSTRY CO.,LTD.
Slide 14: Business Plan for the Medium Term (FYE March 2016 - FYE March 2020)
Morinaga Milk Industry Business Plan for the Medium Term (FYE March 2016 - FYE March 2020) ●Numerical target ● Trends in sales and opera income (Unit: billion yen) FYE March (Billion yen) Net Sales (l axis) (right axis) Income (Billion yen) 2020 650 640.0 25 Net Sales 640.0 20.5 22.5 620 20 599.3 60
Slide 15: Topics: Strengthen Yogurt Business
Initiatives to Achieve the Business Plan for the Medium Term (1) Topics (strengthen yogurt business) Strengthen initiatives addressing the yogurt business Yogurt market continues to expand (sales amount; fiscal year 2006 set at 100) （%） 150 142 140 126 127 130 119 120 106 110 100 100 98 97 95 100 90
Slide 16: Topics: Capital Investment Projects
Initiatives to Achieve the Business Plan for the Medium Term (1) Topics (capital investment projects) Augmentation of functional yogurt production line Total investments of about 28.2 billion yen, announced on October 28 Yogurt business sales New building for yogurt production to be built at Tone Pl
Slide 17: Reconstruction of Business Domain for Growth
Initiatives to Achieve the Business Plan for the Medium Term (2) Reconstruction of business domain for growth Expand the B‐to‐B materials business and functional products Increase use of Shield Lactobacillus®, Bifidobacterium longum BB536 and others in other companies’ B‐to‐C products (Some examples
Slide 18: Redevelopment of Business Domain: Pursuit of Globalization
Initiatives to Achieve the Business Plan for the Medium Term (2) Redevelopment of business domain to achieve growth Pursuit of globalization Start of operations at new plant at Milei GmbH Supply of raw materials for infant formula and sports drinks such as whey protein concentrate (WPC), lactose, la
Slide 19: Improve Asset Efficiency and Streamline
Initiatives to Achieve the Business Plan for the Medium Term (3) Improve asset efficiency and streamline Concentrate management resources in key areas ‐ pull out of unprofitable businesses and refine product lines‐ Reduce variations of product lines Cut 100 products in plan for current fiscal year ⇒
Slide 20: Contributing to Society
Initiatives to Achieve the Business Plan for the Medium Term (4) Contributing to society Activities support children, who “Forest and Food Expedition Team” to cultivate represent the future of Japan Morinaga Little Angels LEGOLAND® Japan’s first official marketing partner Learn about our relationshi
Slide 21: Ensuring Full Disclosure of Information
Ensuring Full Disclosure of Information Won silver in the Annual Report ARC Awards Morinaga Milk Group’s annual report for 2015 won the Silver Award in the overall category for Food & Consumer Packaged Goods in the Traditional Annual Report division of the International ARC Awards 2016. Updates to I
Slide 22: (Reference Materials)
(Reference Materials) 22 Copyright © 2016 MORINAGA MILK INDUSTRY CO.,LTD.
Slide 23: (Ref.) Shares (1H of FYE March 2017)
（Ref.) Shares (1H of FYE March 2017) FYE March FYE March Share 2016 2017 Rank April ‐ September April ‐ September Chilled cup‐type coffee 45% 44% 1 Chilled tea 71% 62% 1 Yogurt 12% 11% 3 Chilled desserts 21% 16% 1 Cheese 13% 13% 3 Ice cream 13% 12% 3 Note: Shares of home‐use products by monetary amo
Slide 24: Cautionary Note Regarding Business Forecasts
Cautionary Note Regarding Business Forecasts Figures for plans, policies and other figures included in this report other than actual past results are forecasts of future business performance, and are calculated based on management’s estimates and understanding of the information available to the Com
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