Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — FY2020 Earnings Presentation
33 slides from Nissin Foods's earnings presentation, May 12, 2020
Slide 1: Financial Results for FY2020 (Fiscal Year Ended March 31, 2020)
Financial Results for FY2020 (Fiscal Year Ended March 31, 2020) Announced on May 12, 2020 Stock Code: 2897
Slide 2: FY2020 Business Report, FY2021 Business Plan
FY2020 Business Report FY2021 Business Plan Director, CFO, and Managing Executive Officer Yukio Yokoyama
Slide 3: Executive Summary
2 Executive Summary Steadily implement measures in response to changing market environment and work to strengthen profitability Domestic: Seek to stabilize earnings base by hitting back at headwind of higher costs with price revisions. Aim to expand revenues and profits through highly unique brand s
Slide 4: FY2020 Results: Summary
3 FY2020 Results: Summary (bil. yen) FY2020 FY2020 FY2019 Results vs. Plan YoY Change Plan Results Revenue 468.9 +3.9 +0.8% +17.9 +4.0% 465.0 451.0 Operating profit 41.3 +4.3 +11.5% +12.3 +42.4% 37.0 29.0 Profit attributable to owners of parent 29.3 +3.3 +12.8% +10.0 +51.5% 26.0 19.4 OP margin 8.8%
Slide 5: Revenue Results by Segment
4 Revenue Results by Segment (bil. Yen) FY2020 FY2020 FY2019 Results vs.Plan YoY Change Plan Results Instant noodles 237.8 +3.8 +1.6% +11.7 +5.2% 234.0 226.1 NISSIN FOOD PRODUCTS 201.3 +1.3 +0.7% +8.1 +4.2% 200.0 193.3 MYOJO FOODS 36.5 +2.5 +7.4% +3.7 +11.1% 34.0 32.9 Chilled and frozen foods 57.3 +
Slide 6: Revenue Contribution by Segment
5 Revenue Contribution by Segment Impact Major Factor (bil. yen) NISSIN Cup type (+5%): Mainstay brands CUP NOODLE and DONBEI achieved record-high sales. FOOD +8.1 Bag type (-2%): OWAN series performed steadily and RAMENYA-SAN series were strong. FY2019 Revenue 451.0 PRODUCTS Others (-1%): The rice
Slide 7: Operating Profit Results by Segment
6 Operating Profit Results by Segment (bil. Yen) FY2020 FY2020 FY2019 Results vs. Plan YoY Change Plan Results Instant noodles 29.8 +2.7 +9.8% +4.0 +15.6% 27.1 25.7 NISSIN FOOD PRODUCTS 27.6 +2.6 +10.3% +3.9 +16.3% 25.0 23.7 MYOJO FOODS 2.2 +0.1 +4.5% +0.2 +7.4% 2.1 2.0 Chilled and frozen foods 1.4
Slide 8: Operating Profit Contribution by Segment
7 Operating Profit Contribution by Segment (bil. yen) Impact Major Factor FY2019 NISSIN Operating profit 29.0 FOOD +3.9 +: Increased revenue due to price revisions. - : Increases in depreciation and amortization related to Kansai Plant, distribution costs. PRODUCTS NISSIN FOOD PRODUCTS +3.9 MYOJO In
Slide 9: Major Factors for Difference in Operating Profit (Non-Recurring Items)
8 Major Factors for Difference in Operating Profit (Impact of Non-Recurring Income and Expenses) (bil. Yen) Difference in FY2020 FY2019 Difference in non-recurring Main items of non-recurring Results Results operating profit income income and expenses and expenses NISSIN FOOD PRODUCTS 27.6 23.7 +3.9
Slide 10: Analysis of Operating Profit: Consolidated (Domestic / Overseas)
9 Analysis of Operating Profit： Consolidated (Domestic / Overseas) (bil. yen) Domestic YoY change Decrease factors Increase factors ◼ Revenue + Impact of price revisions, improvement in selling expense ratio, etc. A: Revenue (Domestic) +11.2 ◼ CoGS ratio (including the impact of (Overseas) +3.5 Incr
Slide 11: FY2021 Management Policy
10 FY2021 Management Policy Aim to strengthen the business base to achieve the goals of the Medium-Term Business Plan 2021 and further growth Domestic: - Advance DX (Digital Transformation) and seek to expand business operations with a product supply framework that is rock solid even under highly un
Slide 12: FY2021 Business Plan Summary
11 FY2021 Business Plan Summary (bil. Yen) FY2021 FY2020 Plan YoY Change Results Revenue 486.0 17.1 +3.7% 468.9 Operating profit 43.5 2.2 +5.4% 41.3 ◼ Main factors behind higher costs Profit attributable to owners of parent 30.5 1.2 +4.0% 29.3 Factors Increases in 4.1 bil. yen distribution expenses
Slide 13: FY2021 Revenue Plan by Segment
12 FY2021 Revenue Plan by Segment (bil. yen) FY2021 FY2020 Plan YoY Change Results Instant noodles 242.5 +4.7 +2.0% 237.8 NISSIN FOOD PRODUCTS 206.0 +4.7 +2.3% 201.3 MYOJO FOODS 36.5 +0.0 +0.0% 36.5 Chilled and frozen foods 59.5 +2.2 +3.8% 57.3 Confectionery and beverages 44.5 +2.6 +6.1% 41.9 Domest
Slide 14: FY2021 Operating Profit Plan by Segment
13 FY2021 Operating Profit Plan by Segment (bil. yen) FY2021 FY2020 Plan YoY Change Results Instant noodles 30.2 +0.4 +1.5% 29.8 NISSIN FOOD PRODUCTS 28.0 +0.4 +1.5% 27.6 MYOJO FOODS 2.2 +0.0 +0.3% 2.2 Chilled and frozen foods 1.7 +0.3 +20.5% 1.4 Confectionery and beverages 2.4 +0.2 +9.4% 2.2 Domest
Slide 15: FY2021 Major Factors for Difference in Operating Profit
FY2021 Major Factors for Difference in Operating Profit 14 (Impact of Non-Recurring Income and Expenses) (bil. Yen) Difference in FY2020 FY2021 Difference in non-recurring Main items of non-recurring Results Plan operating profit income income and expenses and expenses NISSIN FOOD PRODUCTS 27.6 28.0
Slide 16: FY2021 Financial and Capital Policies
15 FY2021 Financial and Capital Policies Cash Flow Shareholder Returns CF provided by operating activities Expected dividend payment: 11.5 bil. yen Dividend per share (plan): 110 yen (1H: 55 yen, Year-end: 55 yen) Approx. 54.0 bil. yen Cash Flow Budget for investment In the event of a shortfall in c
Slide 17: Progress of Medium-Term Business Plan 2021
Progress of Medium-Term Business Plan 2021 Representative Director, President and CEO Koki Ando
Slide 18: Mid-term Plan Review of Medium-Term Business Plan 2021
17 Mid-term Plan Review of Medium-Term Business Plan 2021 Mid-term Plan KPIs (IFRS) FY2021 FY2021 FY2020 Results Plan*1 Revised Plan Revenue 468.9 bil. yen 480.0 bil. yen 486.0 bil. yen Earning power through Operating profit 41.3 bil. yen 42.5 bil. yen 43.5 bil. yen operations Ratio of operating pro
Slide 19: Summary of Medium-Term Business Plan 2021 (1)
18 Mid-term Plan Summary of Medium-Term Business Plan 2021 (1) FY2021 FY2021 FY2021 FY2020 (bil. yen) Initial plan Plan*1 Revised Plan Results Revenue 550.0 480.0 486.0 468.9 Operating profit 47.5 42.5 43.5 41.3 Profit 33.0 30.0 30.5 29.3 ROE (%) 8% or higher 8% or higher 9% 9% Payout ratio Average
Slide 20: Summary of Medium-Term Business Plan 2021 (2)
19 Mid-term Plan Summary of Medium-Term Business Plan 2021 (2) • Market capitalization and Adjusted EPS during the period of the Mid-term Business Plan 2021 Bil. yen yen 1,000 350 *1 937.5 Adjusted EPS 900 330 Market capitalization (After deduction of treasury shares) 310 800 791.6 768.5 290 700 278
Slide 21: Review of Medium-Term Business Plan 2021 (by Segment)
20 Mid-term Plan Review of Medium-Term Business Plan 2021 (by Segment) FY2021 Targets for Domestic Business FY2021 Targets for Overseas Business FY2021 FY2021 FY2020 FY2021 FY2020 FY2021 (bil. yen) Revised (bil. yen) Revised Results Plan*1 Results Plan*1 Plan Plan Revenue 237.8 238.0 242.5 Revenue 6
Slide 22: Review of Five Key Themes
21 Mid-term Plan Review of Five Key Themes Strategic Theme FY2021 Target FY2020 Results FY2021 Estimate Comments 1 ✓ Progress was slightly slow due to the impact of Promoting Up 50% price revisions and a shift to premium products global branding for compared to FY2016 Up 20% Up around 30% in the U.S
Slide 23: Review of Investment and Future Policy
22 Mid-term Plan Review of Investment, etc. and Future Policy Bil. yen Initial plan FY2017 FY2018 FY2019 FY2020 FY2021 (Reasons for extra investment) NISSIN FOOD PRODUCTS (increased investment in Kansai Plant, shift to in-house 150.0 bil. manufacturing of materials, chilled and Capital Around yen fr
Slide 24: Impact of the Coronavirus Disease 2019 (COVID-19)
23 Medium-term Plan Impact of the Coronavirus Disease 2019 (COVID-19) Response to COVID-19 Impact on business performance (FY2020) Main working conditions In the entire NISSIN FOODS Group: • Feb. 27-: Working from home, in principle, and minimizing Approx. 5.9 bil. yen the number of commuters. impac
Slide 25: Initiatives to Sustainable Growth and Enhance Corporate Value
24 Mid-term Plan Initiatives to Sustainable Growth and Enhance Corporate Value ◼ EARTH FOOD CHALLENGE 2030 International ESG reputation Selected for the second consecutive year as a component of the Asia/Pacific Index of the Dow Jones Sustainability Indices, a group of global stock price indices of
Slide 26: APPENDIX
APPENDIX
Slide 27: FY2021 Domestic Business: Policy and Activities by Segment (1)
26 FY2021 Domestic Business: Policy and Activities by Segment (1) NISSIN FOOD PRODUCTS Generate profit by solidifying core brands and create food culture by pursuing new added value ➢ Aiming for the fourth consecutive year of CUP NOODLE and the sixth consecutive year of record sales for NISSIN NO DO
Slide 28: FY2021 Domestic Business: Policy and Activities by Segment (2)
27 FY2021 Domestic Business: Policy and Activities by Segment (2) MYOJO FOODS Build new brands based on proprietary technology, strengthen core brands and contribute to health ➢ Develop new core brands making effective use of proprietary non-fried noodle technologies ➢ Strengthen major brands by nur
Slide 29: FY2021 Domestic Business: Policy and Activities by Segment (3)
28 FY2021 Domestic Business: Policy and Activities by Segment (3) Chilled and frozen foods/Confectionery and Beverages ➢ NISSIN CHILLED FOODS ➢ NISSIN FROZEN FOODS Aim to maintain sustainable business growth and create new markets Accelerate creation of a profit-centric business model • Strengthen n
Slide 30: FY2021 Overseas Business: Policy and Activities by Segment (1)
29 FY2021 Overseas Business: Policy and Activities by Segment (1) The Americas ➢ U.S. ➢ Mexico Improve earnings structure and accelerate sales of premium • Offer new flavors under the CUP NOODLES and U.F.O. products • Strengthen brand recognition targeting young consumers • Improve earnings structur
Slide 31: FY2021 Overseas Business: Policy and Activities by Segment (2)
30 FY2021 Overseas Business: Policy and Activities by Segment (2) Asia ➢ India ➢ Thailand • Expand sales of pivotal products CUP NOODLES and Top Ramen in the Expand investment for further growth domestic instant noodles business • Expand CUP NOODLES market share • Invest in production lines and enha
Slide 32: FY2021 Overseas Business: Policy and Activities by Segment (3)
31 FY2021 Overseas Business: Policy and Activities by Segment (3) EMEA ➢ Europe Further increase presence in growth markets (i.e. Asian noodles) • Roll out and enhance marketing with the new “Asian Blast” concept • Appeal to consumers with high added-value products (especially CUP NOODLES and Soba)
Slide 33: stock shares. The comments and estimates in this document are based on the company’s
Information in this material is not intended to solicit sales or purchase of NISSIN FOODS HOLDINGS stock shares. The comments and estimates in this document are based on the company’s judgment at the time of publication and their accuracy is not guaranteed. They are subject to change without notice