Sti Foods Holdings, Inc. · TSE:2932
Sti Foods — FY2020 Earnings Presentation
36 slides from Sti Foods's earnings presentation, Feb 17, 2021
Slide 1: Results Briefing Materials for the Fiscal Year Ended December 31, 2020
STI Foods Holdings, Inc. STI Foods Holdings, Inc. Results Briefing Materials for the Fiscal Year Ended December 31, 2020 Second Section of the Tokyo Stock Exchange (Securities Code: 2932) February 17, 2021
Slide 2: Table of contents
Table of contents 1. Company profile P.2 2. Summary of financial results for the fiscal year ended December 31, 2020 P.7 3. Business forecast for the fiscal year ending December 31, 2021 P.13 4. Features and strengths of the business P.19 5. Tailwinds in the market environment P.24 6. Growth strateg
Slide 3: Company profile
Company profile
Slide 4: Company profile
Company profile Name of STI Foods Holdings, Inc. Share capital 534 million yen (as of December 31, 2020) company 1-15-14, Minami Aoyama, Minato Ward, Number of Headquarters 289 (including 624 temporary employees) Tokyo employees President and Representative Director Business Manufacture and sale of
Slide 5: 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 6: Group and locations
Group and locations STI Foods Holdings, is formed of six consolidated subsidiaries and one non-consolidated subsidiary The number of manufacturing plants in Japan increased from 1 to 10 in 10 years Overseas business locations Yamatomi (Ishinomaki Plant No. 1 and No. 2) Food STI AMERICA Inc. Smok
Slide 7: Sales composition
Sales composition Supply of marine products, mainly Seven Premium seafood prepared foods, to Seven-Eleven stores nationwide (excluding Hokkaido) Sales composition by sales destination Sales composition by product Food Sales to Seven- ingredients Food products 17% 83% Eleven 18% 82% Seven- 4% Net s
Slide 8: Summary of financial results for the fiscal year ended December 31, 2020
Summary of financial results for the fiscal year ended December 31, 2020
Slide 9: Increase in sales and profit achieved
Statement of income Increase in sales and profit achieved Fiscal year ended Fiscal year ended Initial December 31, 2019 December 31, 2020 forecast Compared to YoY (Released on initial comparison November 9, forecast (Unit: million yen) Results Rate Results Rate 2020) Net sales 20,644 - 23,062 - 111.
Slide 10: Consolidated results highlights
Consolidated results highlights Net sales Operating income 23,062 million yen (111.7% YoY) 1,310 million yen (246.7% YoY) Net sales increased by 2,417 million yen (111.7%) YoY due to strong sales of chilled prepared foods, which offset a decrease in sales of food ingredients Gross profit increas
Slide 11: Analysis of changes in operating income
Analysis of changes in operating income Profit increased significantly due to the effect of increased sales. On the other hand, the establishment of an efficient logistics system could not keep up with the speed of growth in demand, which led to higher costs. 2,500 Logistics costs increased by 1.4
Slide 12: Balance sheet
Balance sheet Fiscal year ended Fiscal year ended (Unit: million yen) Change December 31, 2019 December 31, 2020 Current assets 5,155 6,775 1,620 Non-current assets 4,045 4,548 503 Property, plant and equipment 3,125 3,741 616 Intangible assets 546 502 (44) Investments and other assets 373 304 (69)
Slide 13: Cash flow
Cash flow Fiscal year ended Fiscal year ended (Unit: million yen) Change Breakdown December 31, 2019 December 31, 2020 • Trade receivables: +382 million yen • Inventory assets: +177 Net cash provided by (used million yen in) operating activities 622 1,130 507 • Income before income taxes: +1,281 mil
Slide 14: Business forecast for the fiscal year ending December 31, 2021
Business forecast for the fiscal year ending December 31, 2021
Slide 15: Business forecast for the fiscal year ending December 31, 2021
Business forecast for the fiscal year ending December 31, 2021 Maintain high growth In order to respond to the increase in demand due to the instilling of a new normal, we will strengthen our product development capabilities with a view to forming alliances with major cooking schools while strivin
Slide 16: Initiatives from the fiscal year ending December 31, 2021
Initiatives from the fiscal year ending December 31, 2021 We will establish a supply system that can respond to rising demand by using funds raised from the listing to increase production capacity and optimize factory locations We will introduce new products in real time by strengthening develop
Slide 17: Investment plan for the fiscal year ending December 31, 2021
Investment plan for the fiscal year ending December 31, 2021 Accelerate investment against a backdrop of strong business performance for a total investment of approximately 1.1 billion yen (+28% compared to FY 2020) We plan to implement investments focusing on production capacity expansion and IT
Slide 18: Business strengths - Summary
Business strengths - Summary - We will develop into a highly profitable company through business expansion and improvements in competitiveness and efficiency (Unit: million yen) Net sales Operating income Operating income ratio 26,000 6.0% 23,062 5.7% 20,644 17,843 2.6% 1,570 3.8% Decline in profit
Slide 19: Returns to shareholders
Returns to shareholders Started paying dividends in the first year of listing. There are plans to increase the dividend by 5 yen in the fiscal year ending December 31, 2021 Dividend policy Year-end dividend trends ・Returns to shareholders are an 45 yen (Forecast) important management issues 40 y
Slide 20: Features and strengths of the business
Features and strengths of the business
Slide 21: Ability to create - R&D-oriented company
Ability to create - R&D-oriented company - We research new production methods, and develop marine food products with high barriers to entry Three-step baking and gas substitution packing technology Grilled fish side dishes Incorporating the taste of freshly grilled fish at home in a popular Taki
Slide 22: Ability to create - Integrated production, aggressive quality
Ability to create - Integrated production, aggressive quality - 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 Tem
Slide 23: Ability to create - Integrated production, reduction of food loss
Ability to create - Integrated production, reduction of food loss - Integrated production prevents the loss of flavor components and preserves the texture of fresh fish Reduce raw material costs by thoroughly addressing food loss with a product portfolio that uses up all ingredients. Integrated
Slide 24: Ability to create - Defending quality
Ability to create - Defending quality - We thoroughly comply with quality standards based on Seven-Eleven's advanced quality control principles For more than 20 years since the start of business in 1998, we have been able to produce 500,000 servings per day of high-quality products in the field of
Slide 25: Tailwinds in the market environment
Tailwinds in the market environment
Slide 26: Market environment - Growing prepared foods market
Market environment - Growing prepared foods market The prepared foods market size is about 10 trillion yen, and it is a growing market in the food industry Changing lifestyles, doubling of prepared food sales space in convenience stores Conventional layout Significant growth in bagged prepared f
Slide 27: Growth strategy
Growth strategy
Slide 28: Further expansion of production capacity
Further expansion of production capacity We aim to reduce transportation costs and sales opportunity losses by building a new production plant in the Kinki region We aim to accelerate growth through expansion of production capacity and ability to create Assumed daily prepared foods production ca
Slide 29: Expanding business with Seven-Eleven
Expanding business with Seven-Eleven We will expand sales of prepared marine products to Seven-Eleven through the development of new products that meet consumer needs We aim to enter the growing fish market in North America through 7-Eleven, Inc. We aim to further expand the market for prepared
Slide 30: Develop new sales channels - Form alliances with retail players other than Seven-Eleven
Develop new sales channels - Form alliances with retail players other than Seven-Eleven - We will expand alliances with retail players other than Seven-Eleven to develop new consumer segments We will build a strong alliance with Camel Coffee and promote joint product development Business with Ca
Slide 31: Develop new sales channels - E-commerce development of our own brand for fish lovers
Develop new sales channels - E-commerce development of our own brand for fish lovers - We aim to enter the BtoC business with products of a size and depth that cannot be handled in stores Delivering the true value of our ability to create directly to consumers STI Group Market Strengths cultivated
Slide 32: Growth image with our ability to create
Growth image Pioneer of prepared seafood products that will revolutionize the seafood food industry with our ability to create New product Maximize ability to create development Alliance with retail players Aiming for e-commerce development Developing new sales New sales Expanding into channels ch
Slide 33: (Reference) SDGs initiatives
(Reference) SDGs initiatives
Slide 34: SDGs initiatives (1)
SDGs initiatives (1) Obtained MSC-CoC and ASC-CoC certification in June 2019 Ensuring sustainable raw material procurement Working with MarineFarm on Red salmon fishing in Bristol ASC-certified Chilean silver salmon Healthy salmon fishery Establishment of the Pompom Site*4 that meets the INFA*
Slide 35: 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 social issue Initiatives to reduce fron gas Know-how on gas substitution packing technology
Slide 36: [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