Meiji Holdings Co., Ltd. · TSE:2269

Meiji — H1 FYE 2012/3 Earnings Presentation

46 slides from Meiji's earnings presentation, Nov 22, 2011

  1. Slide 1: Financial Results for the First Half of FYE 2012/3

    Financial Results for the First Half of FYE 2012/3 2011.11.22

  2. Slide 2: Contents

    Contents 1. FYE 2012/3 (1H): Outline of Consolidated Financial Results 2. FYE 2012/3 (Full Year): Consolidated Financial Forecasts 3. For Achieving the “2020 Vision” 4. Appendix | 2011.11.22 | Copyright © 2011 Meiji Holdings Co., Ltd. All rights reserved. 2

  3. Slide 3: 1. FYE 2012/3 (1H): Outline of Consolidated Financial Results

    1. FYE 2012/3 (1H): Outline of Consolidated Financial Results | 2011.11.22 | Copyright © 2011 Meiji Holdings Co., Ltd. All rights reserved. 3

  4. Slide 4: (1) Business Plan for FYE 2012/3

    (1) Business Plan for FYE 2012/3 (billions of yen) FYE FYE Preconditions for original plan 2011/3 2012/3 Results Original plan 1. The impact of the Great East Japan Meiji HD Net sales 1,111.0 1,093.0 Earthquake was significant, with Operating extensive damage [Consolidated] 29.9 21.0 2. Revisions to

  5. Slide 5: (2) Consolidated Financial Results (1H)

    (2) Consolidated Financial Results (1H) (billions of yen) 1H of FYE 2012/3 YoY change Change vs. plan*1 Results (Rate) (Amount) (Rate) (Amount) Net sales 548.1 -2.1% -11.6 +4.0% +21.1 Operating income 7.4 -58.9% -10.6 +34.8% +1.9 Ordinary income 8.6 -54.8% -10.5 +23.8% +1.6 Net income 2.3 -74.8% -7.

  6. Slide 6: (3) Results by Segment (1H)

    (3) Results by Segment (1H) (billions of yen) 1H of FYE 2012/3 YoY change Change vs. plan*1 Results (Rate) (Amount) (Rate) (Amount) Net sales 490.5 -2.4% -12.0 +3.2% +14.9 Food Op. income 2.6 -79.6% -10.3 -31.7% -1.2 Pharma Net sales 58.5 +1.0% +0.5 +1.5% +0.8 Op. income 4.3 -10.6% -0.5 +208.6% +2.9

  7. Slide 7: (4) Results for the Food Segment

    (4) Results for the Food Segment 1. Dairy business (Drinking milk, yogurt, beverages, cheese, butter, dairy products for professional use business, etc.) (billions of yen) Net sales Operating income 1H of FYE Change vs. (Ref.) Change vs. (Ref.) 2012/3 Results Results plan*1 YoY change plan*1 YoY cha

  8. Slide 8: (4) Results for the Food Segment

    (4) Results for the Food Segment [Dairy business] Monthly sales of mainstay [Dairy business] Market share of yogurt (Company survey) brands, YoY change Meiji Oishii Gyunyu Meiji Bulgaria Yogurt Our market share 120% Meiji Probio Yogurt KG21 50% 110% 45% 100% 40% 90% 35% 80% 30% 70% 25% 60% 50% 20% F

  9. Slide 9: (4) Results for the Food Segment: Confectionery

    (4) Results for the Food Segment 2. Confectionery business (Chocolate, chewing gum, candy, imported confectioneries, ice cream, institutional foodstuffs, such as confectioneries and other food products, etc.) (billions of yen) Net sales Operating income 1H of FYE Change vs. (Ref.) Change vs. (Ref.)

  10. Slide 10: (4) Results for the Food Segment: Healthcare & Nutritionals

    (4) Results for the Food Segment 3. Healthcare & Nutritionals business (Sports nutrition, functional healthcare products, food, OTC drugs, enteral formula, nursing care foods, infant formula, etc.) (billions of yen) Net sales Operating income 1H of FYE Change vs. (Ref.) Change vs. (Ref.) 2012/3 Resu

  11. Slide 11: (5) Analysis of Operating Income (1H)

    (5) Analysis of Operating Income (1H) (billions of yen) 1H Results (By Segment) Original Phar- Plan*1 Food Other ma FYE 2011/3 (1H) 18.0 13.0 4.8 0.2 18.0 Increase in income *2 -5.7 -6.5 +0.8 – -5.0 due to increased sales Procurement costs -2.3 -2.3 – – -1.5 of raw materials Consolidated -0.8 -0.8 0

  12. Slide 12: 2. FYE 2012/3 (Full Year): Consolidated Financial Forecasts

    2. FYE 2012/3 (Full Year): Consolidated Financial Forecasts | 2011.11.22 | Copyright © 2011 Meiji Holdings Co., Ltd. All rights reserved. 12

  13. Slide 13: (1) Consolidated Financial Forecasts

    (1) Consolidated Financial Forecasts (billions of yen) FYE 2012/3 1H 2H (Revised plan)*2 Full Year (Revised plan)*2 Change Change Change YoY YoY YoY vs. vs. vs. change change change plan*1 plan*1 plan*1 -2.1% +4.0% +3.0% +0.3% +0.5% +2.1% Net sales 548.1 (-11.6) (+21.1) 567.9 (+16.6) (+1.9) 1,116.0

  14. Slide 14: (2) Financial Forecasts by Segment

    (2) Financial Forecasts by Segment (billions of yen) FYE 2012/3 1H 2H (Revised plan)*2 Full Year (Revised plan)*2 YoY Change YoY Change YoY Change change vs. plan*1 change vs. plan*1 change vs. plan*1 -2.4% +3.2% +3.5% -0.3% +0.5% +1.4% Net sales 490.5 (-12.0) (+14.9) 503.1 (+16.8) (-1.3) 993.7 (+4.

  15. Slide 15: (3) Financial Forecasts for the Food Segment

    (3) Financial Forecasts for the Food Segment (billions of yen) FYE 2012/3 1H 2H (Revised plan)*2 Full Year (Revised plan)*2 Change Change YoY YoY Change YoY vs. vs. change change vs. plan*1 change plan*1 plan*1 Net -2.4% +3.2% +3.5% -0.3% +0.5% +1.4% 490.5 (-12.0) (+14.9) 503.1 (+16.8) (-1.3) 993.7

  16. Slide 16: Food segment forecasts, by business

    (3) Financial Forecasts for the Food Segment Food segment forecasts, by business (billions of yen) 1H 2H (Revised plan)*2 Full Year (Revised plan)*2 (Ref.) (Ref.) (Ref.) Change Change Change YoY YoY YoY vs. plan*1 vs. plan*1 vs. plan*1 change change change -0.2% -0.4% -0.3% Net sales 290.0 (-0.6) -7

  17. Slide 17: Forecasts: Dairy business

    (3) Financial Forecasts for the Food Segment 1. Dairy business (Drinking milk, yogurt, beverages, cheese, butter, dairy products for professional use business, etc.) (billions of yen) FYE 2012/3 1H 2H (Revised plan)*2 Full Year (Revised plan)*2 Change (Ref.) (Ref.) Change (Ref.) Change vs. YoY YoY v

  18. Slide 18: Dairy business: Initiatives for 2H

    (3) Financial Forecasts for the Food Segment 1. Dairy business: Initiatives for 2H Fresh dairy • Increase the recognition rate of “Meiji Oishii Gyunyu”: Implement marketing through a combination of TV commercials and storefront measures • Strengthen the sales of yogurt products • Bulgaria series: Pl

  19. Slide 19: Dairy business: Net sales of the mainstay brands

    (3) Financial Forecasts for the Food Segment 1. Dairy business: Net sales of the mainstay brands (billions of yen) FYE 2012/3 1H 2H Full Year YoY (Revised plan) YoY (Revised plan) YoY change change change Meiji Oishii Gyunyu 24.7 -7.5% 23.9 +2.1% 48.7 -3.0% Meiji Bulgaria Yogurt 33.2 -5.4% 32.3 +2.5

  20. Slide 20: Forecasts: Confectionery business

    (3) Financial Forecasts for the Food Segment 2. Confectionery business (Chocolate, chewing gum, candy, imported confectioneries, ice cream, institutional foodstuffs, such as confectioneries and other food products, etc.) (billions of yen) FYE 2012/3 1H 2H (Revised plan)*2 Full Year (Revised plan)*2

  21. Slide 21: Confectionery business: Initiatives for 2H

    (3) Financial Forecasts for the Food Segment 2. Confectionery business: Initiatives for 2H Chocolate • Increase the number of products and measures, with a focus on limited-edition winter products • Expand the sales of chocolate bars in the peak demand season from Christmas to Valentine’s Day Ice cr

  22. Slide 22: Forecasts: Healthcare & Nutritionals business

    (3) Financial Forecasts for the Food Segment 3. Healthcare & Nutritionals business (Sports nutrition, functional healthcare products, food, OTC drugs, enteral formula, nursing care foods, infant formula, etc.) (billions of yen) FYE 2012/3 1H 2H (Revised plan)*2 Full Year (Revised plan)*2 Change (Ref

  23. Slide 23: Healthcare & Nutritionals: Initiatives for 2H

    (3) Financial Forecasts for the Food Segment 3. Healthcare & Nutritionals business: Initiatives for 2H Healthcare products • “Amino Collagen” and “ISODINE UGAIGUSURI” Strengthen information transmission capabilities ahead of the demand season • “SAVAS” and “VAAM” Sponsoring for sports events and imp

  24. Slide 24: (4) Financial Forecasts for the Pharma Segment

    (4) Financial Forecasts for the Pharma Segment (billions of yen) FYE 2012/3 1H 2H (Revised plan)*2 Full Year (Revised plan)*2 Change Change YoY YoY Change YoY vs. vs. change change vs. plan*1 change plan*1 plan*1 Net +1.0% +1.5% -0.3% -3.1% +0.3% -1.0% 58.5 66.0 124.5 Pharma sales (+0.5) (+0.8) (-0.

  25. Slide 25: (5) Analysis of Operating Income (2H)

    (5) Analysis of Operating Income (2H) (billions of yen) 2H Revised Plan*2 (By segment) Original Food Phar- Other Plan*1 ma FYE 2011/3 (2H) 11.9 9.3 2.7 -0.1 11.9 Increase in income *2 +1.1 +0.5 +0.6 – +0.9 due to increased sales Procurement costs of -0.9 -0.9 – – -0.3 raw materials Advertising expen

  26. Slide 26: (5) Analysis of Operating Income (Full Year)

    (5) Analysis of Operating Income (Full Year) (billions of yen) Full Year Revised Plan*2 (By segment) Original Food Phar- Other Plan*1 ma FYE 2011/3 29.9 22.3 7.5 0.1 29.9 Increase in income -4.6*2 -6.0 +1.4 – -4.1 due to increased sales Procurement costs of -3.2 -3.2 – – -1.8 raw materials Advertisi

  27. Slide 27: 3. For Achieving the “2020 Vision”

    3. For Achieving the “2020 Vision” * The “2020 Vision” announced on September 14, 2010, is our corporate vision | 2011.11.22 | Copyright © 2011 Meiji Holdings Co., Ltd. All rights reserved. 27 including the strategies and goals for the fiscal year ending March 31, 2021.

  28. Slide 28: (1) Outline of the “2020 Vision”

    (1) Outline of the “2020 Vision” [Understanding of the business environment at the time the Vision was formulated*] Goals of the “2020 Vision” 1. A shrinking domestic population and an aging society with a declining birthrate Net sales: ¥1,500 billion (i) Diversification of consumer needs, values, a

  29. Slide 29: [Food] New developments in the Confectionery and Dairy Business

    (2) [Food] New developments in the Confectionery and Dairy Business Establish a business scale of more than ¥800 billion in net sales by FY2020 (FY2009: Confectionery business: approx. ¥250 billion; dairy business: approx. ¥470 billion) Integrating the strengths of Launched on Sep. 19 the confection

  30. Slide 30: [Food] New developments in the Healthcare and Nutritionals Business

    (2) [Food] New developments in the Healthcare and Nutritionals Business Establish a business scale of more than ¥200 billion in net sales by FY2020 (FY2009: approx. ¥120 billion) <Sales of Enteral Formula >  Increase supply to the health (■Our sales: billions of yen) (■Market size: billions of yen)

  31. Slide 31: [Food] New developments in the International Business

    (2) [Food] New developments in the International Business Establish a business scale of more than ¥150 billion in net sales by FY2020 (FY2009: approx. ¥50 billion) China Asia U.S. Contents in the “2020 Vision” Businesses to be Businesses to be newly Businesses to be Businesses to be newly Businesses

  32. Slide 32: [Pharmaceuticals] Efforts to Expand Our Business

    (3) [Pharmaceuticals] Efforts to Expand Our Business As a “Speciality and Generic Pharmaceuticals Company,” establish a business scale of more than ¥200 billion in net sales by FY2020 New drugs business Reinforcement of anticancer drugs and biomedicines, in addition to the fields in which we special

  33. Slide 33: [Pharmaceuticals] Generic drugs business

    (3) [Pharmaceuticals] Efforts to Expand Our Business Generic drugs business Reinforce sales capabilities in drugs for <GE Sales> major lifestyle-related diseases (Unit: Billions of yen) Sales of 37 constituents  Reinforce sales capabilities in drugs for 50 and 47 formulas mainly lifestyle-related d

  34. Slide 34: [Pharmaceuticals] International business

    (3) [Pharmaceuticals] Efforts to Expand Our Business International business Accelerating our international business, mainly in Asia and emerging countries based on the activities of Group companies abroad ● Group Companies  Establish an operational structure for ● Offices achieving high-quality pro

  35. Slide 35: [Pharmaceuticals] Agricultural chemicals and veterinary drugs

    (3) [Pharmaceuticals] Efforts to Expand Our Business Agricultural chemicals business  Achieve the early maximization of sales of the liquid formula “ZAXA” herbicide  Maintain the No.1 market share for “ORYZEMATE,” a rice blast preventative  Strengthen overseas business through sales of “ORYZEMATE

  36. Slide 36: (4) Roadmap for Achieving the “2020 Vision”

    (4) Roadmap for Achieving the “2020 Vision” FY2009 FY2010 FY2011 FY2012 FY2013 FY2014  FY2020 Measures are being aggressively and Achievement steadily implemented for achieving the 0 of the 2020 “2020 Vision” 202 Vision FY erm -T d ium Plan 7 Me iness 201 Bu s FY erm The Medium-Term Business Plan f

  37. Slide 37: 4. Appendix

    4. Appendix | 2011.11.22 | Copyright © 2011 Meiji Holdings Co., Ltd. All rights reserved. 37

  38. Slide 38: (1) Consolidated Statements of Income (Summary)

    (1) Consolidated Statements of Income (Summary) (billions of yen) 1H of FYE 2012/3 Change vs. plan*1 YoY change Plan*1 Results (Rate) (Amounts) (Rate) (Amounts) Net sales 527.0 548.1 +4.0% +21.1 -2.1% -11.6 Gross profit ― 179.0 ― ― -5.6% -10.6 SG&A ― 171.5 ― ― -0.0% -0.0 Operating income 5.5 7.4 +34

  39. Slide 39: (2) Consolidated Balance Sheets (Summary)

    (2) Consolidated Balance Sheets (Summary) (billions of yen) Compared to Compared to YoY YoY As of Sep. 30, 2011 Results beginning of change As of Sep. 30, 2011 Results beginning of change period period Current assets 309.2 +7.5 -2.2 Current liabilities 309.1 -7.8 +7.4 Cash and deposits 11.4 -10.2 -2

  40. Slide 40: (3) Consolidated Statements of Comprehensive Income

    (3) Consolidated Statements of Comprehensive Income (billions of yen) 1H of FYE 2012/3 Net income before minority interests 2.4 Other comprehensive income Net unrealized holding gains or losses on securities 0.2 Deferred gains or losses on hedges -0.5 Foreign currency translation adjustments 0.4 Equ

  41. Slide 41: (4) Consolidated Financial Indices and Cash Flows

    (4) Consolidated Financial Indices and Cash Flows (billions of yen) 1H of FYE FYE 1H of FYE 2011/3 2011/3 2012/3 Earning per share (EPS) 127.26 yen 129.63 yen 32.03 yen Return on equity (ROE) 3.3% 3.3% 0.8% Cash flows from operating activities…(1) 29.8 57.9 6.2 Cash flows from investing activities…(

  42. Slide 42: (Reference) Cash Flow Prospects for FYE 2012/3

    (Reference) Cash Flow Prospects for FYE 2012/3 (billions of yen) FYE 2012/3 1H 2H Full Year YoY (Revised plan) YoY (Revised plan) YoY change change change Cash flows from operating activities…(1) 6.2 -23.6 34.4 +6.3 40.6 -17.3 Cash flows from investing activities…(2) -22.7 -3.8 -17.6 -4.2 -40.3 -8.0

  43. Slide 43: (5) Dividends

    (5) Dividends Dividends per share Payout ratio Year-end Annual (Consolidated) Interim (forecast) (forecast) FYE 2012/3 40.00 yen 40.00 yen 80.00 yen 58.9% * Record of the donation of shareholder special benefits in FYE 2012/3 • Number of shareholders In combination with donations from Meiji Holdings

  44. Slide 44: (6) CAPEX, Depreciation, R&D Expenses

    (6) CAPEX, Depreciation, R&D Expenses (billions of yen) 1H of FYE 2012/3 Pharma- Notes Food ceuticals Capital 19.8 17.3 2.5 Cash basis (including leases) expenditures Property, plants and equipment Depreciation 18.2 15.2 2.4 (including leases) R&D expenses 10.8 4.7 6.1 Main capital expenditures Segm

  45. Slide 45: Forward-looking statements notice

    • The forward-looking statements described in this material, such as business forecasts, are based on information available at the time of the release of this presentation and reasonable assumptions made by the Company. Actual results could differ materially from forecasts due to various factors. •

  46. Slide 46: Copyright © 2011 Meiji Holdings Co., Ltd. All rights reserved. produced by K,T&Y

    | 2011.11.22 | Copyright © 2011 Meiji Holdings Co., Ltd. All rights reserved. produced by K,T&Y 46

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