Meiji Holdings Co., Ltd. · TSE:2269

Meiji — H1 FY2024 Earnings Presentation

48 slides from Meiji's earnings presentation, Nov 11, 2024

  1. Slide 1: Financial Results for the H1 of FYE March 2025 (FY2024)

    Financial Results for the H1 of FYE March 2025 (FY2024) (From April 1, 2024 to September 30, 2024) November 11, 2024 0 © Meiji Holdings Co., Ltd. All rights reserved.

  2. Slide 2: Contents

    Contents 1. Financial Summary for the H1 of FY2024 2. Outlook for the H2 and Full-year of FY2024 1 © Meiji Holdings Co., Ltd. All rights reserved.

  3. Slide 3: 1. Financial Summary for the H1 of FY2024

    1. Financial Summary for the H1 of FY2024 2 © Meiji Holdings Co., Ltd. All rights reserved.

  4. Slide 4: Summary for H1 FY2024 Consolidated Results

    Summary for H1 FY2024 Consolidated Results (JPY bn) FY2023 FY2024 FY2024 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +4.2% +1.3% Net sales 546.0 569.0 +22.9 +7.5 561.5 +18.3% +2.2% (Overseas sales) 64.9* 76.7 +11.8 +1.6 75.0 -0.1% +23.3% Operating profit 44.4 44.3 -0.0 +8.3 36.0 Op. profit

  5. Slide 5: Food: Summary – H1 FY2024

    Food: Summary – H1 FY2024 （JPY bn） FY2023 FY2024 FY2024 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +2.2% +0.5% Net sales 445.4 455.4 +9.9 +2.0 453.3 -6.9% -7.8% Operating profit 29.6 27.6 -2.0 -2.3 30.0 Analysis of changes in operating profit Japan：+1.5 Overseas：-3.6 H1 Results - FY2023 29

  6. Slide 6: Pharmaceutical: Summary – H1 FY2024

    Pharmaceutical: Summary – H1 FY2024 （JPY bn） FY2023 FY2024 FY2024 H1 Results H1 Results YoY Change vs. H1 Plan H1 Plan +12.9% +4.9% Net sales 100.8 113.8 +13.0 +5.2 108.6 +16.7% +117.5% Operating profit 15.9 18.5 +2.6 +10.0 8.5 Analysis of changes in operating profit H1 Results - FY2023 15.9 Due to

  7. Slide 7: 2. Outlook for the H2 and Full-year of FY2024

    2. Outlook for the H2 and Full-year of FY2024 6 © Meiji Holdings Co., Ltd. All rights reserved.

  8. Slide 8: Outlook for H2 and Full-year of FY2024

    Outlook for H2 and Full-year of FY2024 （JPY bn） FY2024 FY2024 FY2024 FY2024 YoY H2 Plan YoY H2 Plan Full-year YoY H1 Results Change (Rev. Nov) Change (Int. May) Plan Change +4.2% +5.5% +4.8% Net sales 569.0 589.9 597.5 1,159.0 Consolidated +22.9 +30.5 +53.5 -0.1% +4.3% +2.0% Operating profit 44.3 -0

  9. Slide 9: Food: Progress of the Full-year Plan

    Food: Progress of the Full-year Plan （JPY bn） FY2024 FY2024 FY2024 H1 YoY change H2 YoY change Full-year YoY change Int. Plan +1.1% +4.0% +2.6% （May 10） 30.0 +0.3 36.0 +1.3 66.0 +1.6 Operating profit Aim to achieve H1 results -6.9% +10.8% +2.6% initial operating H2/Full-year rev. plan 27.6 -2.0 38.3

  10. Slide 10: Food: Overcome Cost Increase, Realizing Value-Added Strategy

    Food: Overcome Cost Increase, Realizing Value-Added Strategy (JPY bn) Impact on Operating profit 30.0 Price increase +  Peaking in during FY2022-2023, when prices soared for all raw Product amount change materials, cost increases are beginning to level off. In addition to 20.0 rapid FX fluctuations

  11. Slide 11: Food: Promote Product / Marketing Strategy, not Affected by Rising Raw Materials Prices

    Chocolate business Food: Promote Product / Marketing Strategy, not Affected by Rising Raw Materials Prices Chocolate overall market （YoY, value-basis） Procurement status of cacao raw materials • Cocoa beans: Securing amount necessary for production 6% Companies have implemented price increase enable

  12. Slide 12: Food: Strengthen Promoting through Growing Sales Channels

    Chocolate business Food: Strengthen Promoting through Growing Sales Channels  Capture inbound demand • Enhanced marketing to raise brand awareness (incl. posting information by SNS influencers) • Promotion in sync with multi-language products site • Themed promotions at sales stores (Japanese essen

  13. Slide 13: Food: Initiatives for Stable Growth from Mainstay Products in Japan

    Dairy business Food: Initiatives for Stable Growth from Mainstay Products in Japan Functional yogurt Other than R-1 R-1 Yogurt market Double-digit decrease Consumer: +1% Overall: -1% (YoY, value-basis) Home delivery: -10% Functional yogurt：-7% 4% • Strengthen joint (based on Meiji data) 2% promotion

  14. Slide 14: Food: Initiatives for Stable Growth from Mainstay Products in Japan

    Dairy business Food: Initiatives for Stable Growth from Mainstay Products in Japan Meiji Bulgaria Yogurt Meiji Oishii Gyunyu Milk overall market Sales by brand type* （YoY, value-basis) 〈Net sales of Meiji Oishii PB：+3% 8% Gyunyu brand *〉 Drink Total 6% Multiple +0.1% 4% 2% H1 +6% packs 0% Two new pr

  15. Slide 15: Food: Establish Optimal Production System to Improve ROIC by Business

    Food: Establish Optimal Production System to Improve ROIC by Business New Hokkaido Plant Nishi Shunbetsu Started operation in 1968 Plant Plan to cease operation in Produce value-added dairy ingredients Mar 2027 Planning to obtain Halal certification on Started operation in 1972 assumption of exporti

  16. Slide 16: Food: Enhance and Expand B to B business

    Food: Enhance and Expand B to B business, by Leveraging New products and Technologies Domestic B to B business* net sales (JPY bn) Aim for steady growth based on a balanced structure, instead of relying on any specific sales channel 87.3  Differentiation and profitability improvement, enabled by 78

  17. Slide 17: Food: China Business ~Progress of Profitability Improvement Plan~

    Food: China Business ~Progress of Profitability Improvement Plan~ (JPY bn) FY2024 FY2024 FY2024 Full-year H1 H2 Plan YoY vs. Int. Plan 〈Page 9 of Teleconference materials, held on Apr 9, 2024〉 Results (Rev. Nov) Change Plan (Rev. Nov) +2.5% -19.5% Net sales 11.3 13.6 25.0 +0.6 -6.0 China ― ー Op. Pro

  18. Slide 18: Food: China Business ~Differential Advantage through Meiji Unique Products~

    Food: China Business ~Differential Advantage through Meiji Unique Products~ Drinking milk and yogurt for consumers Meiji Ding Chun milk: Hokkaido Flavor Yogurt Protein-intensified Drink-type launched  Enhance high-value added lineup (approx. 34RMB/950 mL) in Aug, following  Strengthen marketing ac

  19. Slide 19: Food: Foster Global Brand, Establishing Global Production System

    China / Asia / Europe and Americas Business Food: Foster Global Brand, Establishing Global Production System Hello Panda Overseas Net Sales  Hello Panda, available only in overseas, grown to match the scale of (JPY bn) Japanese main confectionery brand Available 30+ • The U.S.: As driving force, wi

  20. Slide 20: Pharmaceutical: Progress of the Full-year Annual Plan

    Pharmaceutical: Progress of the Full-year Annual Plan （JPY bn） FY2024 FY2024 FY2024 Full-year H1 Results YoY change H2 Plan YoY change YoY change Plan Int. Plan -46.3% +142.2% +10.2% 8.5 16.5 25.0 Aim to achieve Operating profit （May 10） -7.3 +9.6 +2.3 H1 results initial operating +16.7% -4.9% +10.2

  21. Slide 21: Pharmaceutical: KOSTAIVE, Intramuscular Injection against COVID-19

    Pharmaceutical: KOSTAIVE, Intramuscular Injection against COVID-19 ~ Achievements and Challenges Going Forward ~ 〈Progress for the past year〉 Initiation of P3 clinical trial for booster immunization in adults Sep. 2023 (Bivalent: original strain and omicron strain)  Began shipment for 24/25 Nov. 20

  22. Slide 22: Pharmaceutical: KOSTAIVE, Intramuscular Injection against COVID-19

    Pharmaceutical: KOSTAIVE, Intramuscular Injection against COVID-19 ~ Achievements and Challenges Going Forward ~ Oct 17, 2024 Three academic associations, the Japanese Association for Infectious Diseases, the Japanese Respiratory Society, and the Japanese Society for Vaccinology, released their “Vie

  23. Slide 23: Pharmaceutical: Stable Growth in Japan, Driven by Infectious Disease area

    Pharmaceutical: Stable Growth in Japan, Driven by Infectious Disease area (JPY bn) FY2024 FY2024 FY2024 Full-year H1 Results YoY change H2 Plan YoY change YoY change Plan Domestic +7.8% +13.8% +10.9% 53.6 63.1 116.7 Net Sales pharmaceuticals +3.8 +7.6 +11.5 (Japan) [Included in the above] +7.9% +11.

  24. Slide 24: FY2024 Full-year Plan: Unchanged

    FY2024 Full-year Plan: Unchanged (JPY bn) FY2023 FY2024 Results Plan YoY Change +4.8% Net sales 1,105.4 1,159.0 +53.5 +2.0% Operating profit 84.3 86.0 +1.6 Op. profit margin 7.6% 7.4% -0.2 pt Profit attributable to owners -1.3% 50.6 50.0 of parent -0.6 EPS (JPY) 181.64 181.74 +0.10 Cash dividends pe

  25. Slide 25: Appendices

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

  26. Slide 26: Analysis of Consolidated Operating Profit – H1 FY2024

    Analysis of Consolidated Operating Profit – H1 FY2024 (JPY bn) Consolidated Food Pharma Other Results - H1 FY2023 44.4 29.6 15.9 -1.1 Due to increased/decreased sales +9.3 +8.0 +1.3 ― *1 Impact of drug price revision +0.9 ― +0.9 ― Changes in costs of goods sold -6.6 -6.9 +0.3 ― *2 Changes in other S

  27. Slide 27: Food: Analysis of Operating Profit by Business – H1 FY2024

    Food: Analysis of Operating Profit by Business – H1 FY2024 (JPY bn) Food Food Dairy Chocolate Nutrition Other Total solutions Op. profit results –H1 FY2023 29.6 9.4 4.3 8.2 6.3 1.2 Due to increased/decreased sales +8.0 +1.3 +1.7 +0.6 +4.0 +0.3 Changes in COGS -6.9 -1.6 -2.9 +0.7 -2.5 -0.5 Changes in

  28. Slide 28: Food: Analysis of Operating Profit by Business – H2 FY2024

    Food: Analysis of Operating Profit by Business – H2 FY2024 (JPY bn) Food Food Dairy Chocolate Nutrition Other Total solutions Op. profit results –H2 FY2023 34.6 10.2 11.1 8.5 3.5 1.2 Due to increased/decreased sales +18.3 +2.3 +8.4 +3.5 +5.5 -1.5 Changes in COGS -10.7 -0.2 -6.8 -1.5 -1.8 -0.3 Change

  29. Slide 29: Food: Analysis of Operating Profit by Business – FY2024

    Food: Analysis of Operating Profit by Business – FY2024 (JPY bn) Food Food Dairy Chocolate Nutrition Other Total solutions Op. profit results –FY2023 64.3 19.6 15.5 16.7 9.8 2.4 Due to increased/decreased sales +26.3 +3.6 +10.1 +4.1 +9.5 -1.2 Changes in COGS -17.6 -1.8 -9.7 -0.8 -4.3 -0.8 Changes in

  30. Slide 30: Food: H1 FY2024 Results by Business

    Food: H1 FY2024 Results by Business  Dairy  Sales by main category* （JPY bn） FY2024 FY2024 Full-year YoY change, FY2024 H1 H1 Results YoY Plan YoY Change (Rev. Nov) Change Functional yogurt -5.1% -3.3% -1.5% Net sales 135.5 -4.6 270.1 -4.0 Yogurt -0.6% +10.1% +13.2% Drinking milk +3.1% Op. Profit

  31. Slide 31: Food: H1 FY2024 Results by Business

    Food: H1 FY2024 Results by Business  Chocolate  Nutrition （JPY bn） FY2024 （JPY bn） FY2024 FY2024 Full-year FY2024 Full-year H1 Results YoY Plan YoY H1 Results YoY Plan YoY Change (Rev. Nov) Change Change (Rev. Nov) Change +8.7% +5.2% +5.7% +5.0% Net sales 73.9 +5.9 163.5 +8.0 Net sales 62.3 +3.3 1

  32. Slide 32: Food: H1 FY2024 Results by Business

    Food: H1 FY2024 Results by Business  Food Solution  Others （JPY bn） FY2024 （JPY bn） FY2024 FY2024 Full-year FY2024 Full-year H1 Results YoY Plan YoY H1 Results YoY Plan YoY Change (Rev. Nov) Change Change (Rev. Nov) Change +6.1% +6.9% -0.4% -5.1% Net sales 99.4 +5.6 196.0 +12.6 Net sales 84.1 -0.3

  33. Slide 33: Food: H1 FY2024 Results by Business

    Food: H1 FY2024 Results by Business  Overseas  China • Drinking milk and yogurt for the consumer market: - Decreased in sales, increased in profit due to narrowing down (JPY bn) FY2024 FY2023 FY2024 FY2024 sales target based on profitability improvement plan Full-year Results H1 H2 Plan YoY YoY Pl

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

    Food: Net Sales and Op. Profit by Business （JPY bn） FY2024 FY2024 FY2023 FY2024 YoY H2 Plan YoY Plan YoY Results H1 Results (Rev. Nov) (Rev. Nov) Change Change Change -3.3% +0.5% -1.5% Net sales 274.1 135.5 -4.6 134.6 +0.6 270.1 -4.0 Dairy +10.1% +16.1% +13.2% Op. profit 19.6 10.4 +0.9 11.8 +1.6 22.

  35. Slide 35: Market Prices of Main Imported Raw Materials

    Market Prices of Main Imported Raw Materials (USD/MT) Nonfat Dry Milk (USD/MT) Cheese 4,000 6,000 5,000 3,000 4,000 2,000 3,000 2,000 1,000 1,000 0 0 (GBP/MT) Cocoa beans (USD/lb) Sugar 12,000 30 10,000 25 8,000 20 6,000 15 4,000 10 2,000 5 0 0 34 © Meiji Holdings Co., Ltd. All rights reserved. Sour

  36. Slide 36: Pharmaceutical: Analysis of Operating Profit – H1 FY2024

    Pharmaceutical: Analysis of Operating Profit – H1 FY2024 (JPY bn) Domestic Pharma Overseas Vaccine/Veterinary pharmaceuticals Total (Japan) pharmaceuticals drugs Operating Profit – H1 FY2023 15.9 7.8 3.6 4.3 Due to increased/decreased sales +1.3 +0.5 +0.5 +0.4 Impact of drug price revision +0.9 +0.9

  37. Slide 37: Pharmaceutical: Analysis of Operating Profit – H2 FY2024

    Pharmaceutical: Analysis of Operating Profit – H2 FY2024 (JPY bn) Domestic Pharma Overseas Vaccine/Veterinary pharmaceuticals Total (Japan) pharmaceuticals drugs Operating Profit – H2 FY2023 6.8 7.9 1.2 -2.4 Due to increased/decreased sales +7.2 +0.4 -0.9 +7.6 Impact of drug price revision +0.6 +0.6

  38. Slide 38: Pharmaceutical: Analysis of Operating Profit – FY2024

    Pharmaceutical: Analysis of Operating Profit – FY2024 (JPY bn) Domestic Pharma Overseas Vaccine/Veterinary pharmaceuticals Total (Japan) pharmaceuticals drugs Operating Profit – FY2023 22.7 15.8 4.9 1.9 Due to increased/decreased sales +8.5 +0.9 -0.4 +8.0 Impact of drug price revision +1.5 +1.5 ー ー

  39. Slide 39: Pharmaceutical: Net sales and Op. Profit by Business

    Pharmaceutical: Net sales and Op. Profit by Business (JPY bn) FY2024 FY2024 FY2023 FY2024 YoY H2 Plan YoY Plan YoY Results H1 Results Change (Rev. Nov) Change (Rev. Nov) Change +7.8% +13.8% +10.9% Domestic Net sales 105.2 53.6 +3.8 63.1 +7.6 116.7 +11.5 pharmaceuticals +37.5% +19.7% +28.6% (Japan) O

  40. Slide 40: Pharmaceutical: Net sales by Category in Japan

    Pharmaceutical: Net sales by Category in Japan （JPY bn） FY2024 FY2024 FY2023 FY2024 YoY H2 Plan YoY Plan YoY Results H1 Results Change (Rev. Nov) Change (Rev. Nov) Change +7.9% +11.3% +9.7% Infectious Diseases *1 42.7 21.8 +1.5 24.9 +2.5 46.8 +4.1 +28.6% +27.3% +27.9% Immune System*1 20.1 10.8 +2.4

  41. Slide 41: Pharmaceutical: H1 FY2024 Results by Business

    Pharmaceutical: H1 FY2024 Results by Business  Domestic pharmaceuticals (Japan)  Overseas pharmaceuticals (JPY bn) FY2024 (JPY bn) FY2024 FY2024 FY2024 YoY Plan YoY YoY Plan YoY H1 Results H1 Results Change (Rev. Nov) Change Change (Rev. Nov) Change +7.8% +10.9% +22.7% +22.3% Net sales 53.6 +3.8 1

  42. Slide 42: Pharmaceutical: H1 FY2024 Results by Business

    Pharmaceutical: H1 FY2024 Results by Business  Vaccines and Veterinary drugs (JPY bn) FY2024 FY2024 YoY Plan YoY H1 Results Change (Rev. Nov) Change +12.5% +35.4% Net sales 26.6 +2.9 59.1 +15.4 -1.1% +137.2% Operating profit 4.3 -0.0 4.6 +2.6  Net sales • Shipment volume for influenza vaccine larg

  43. Slide 43: Pharmaceutical: R&D Pipeline - Infectious disease and others

    Pharmaceutical: R&D Pipeline - 1 Code No. Efficacy Classification Target Disease Stage (Generic Name) Infectious disease OP0595* (Nacubactam) β-lactamase inhibitor Infections caused by carbapenem-resistant bacteria Phase III (Japan, Overseas)** Induction and maintenance therapy for patients with Imm

  44. Slide 44: Pharmaceutical: R&D Pipeline - Vaccine

    Pharmaceutical: R&D Pipeline - 2 Code No. Efficacy Target Disease Stage (Generic Name) Classification Pentavalent vaccine against diphtheria, tetanus, Launched (Japan) KD-370 Vaccine pertussis, poliovirus, and Haemophilus influenza type b Product name: Quintovac Aqueous Suspension (Five-in-one combi

  45. Slide 45: Pharmaceutical: R&D Pipeline - Veterinary Drugs

    Pharmaceutical: R&D Pipeline - 3 Code No. Efficacy Classification Stage Launched (Japan) ME4137 Injectable antibacterial drug for cattle Product name: Forcyl (Launched on May 27, 2024) ME4137 Injectable antibacterial drug for swine Approved (Japan) Veterinary Drugs KD-412* Vaccine for cattle Approve

  46. Slide 46: 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

  47. Slide 47: Key Currencies and our Average Exchange Rates

    Key Currencies and our Average Exchange Rates Exchange rate assumptions USD EUR CNY (JPY) 180.00 FY2024 Plan 168.37 164.27 158.82 160.90 157.70 160.00 150.35 USD JPY145 143.74 143.34 156.53 138.24 140.32 140.00 147.87 150.26 145.44 147.00 EUR JPY155 138.68 141.16 138.11 133.26 120.00 129.04 RMB JPY2

  48. Slide 48: 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

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