Slide 1: Results Briefing Materials for FY2016
1/27 Results Briefing Materials for FY2016 Friday, February 3, 2017 Kagome Co., Ltd. (2811) http://www.kagome.co.jp/company/ir Copyright © KAGOME CO., LTD. All rights reserved.
Slide 2: Today’s Topics
2/27 Today’s Topics I. FY2016 Financial Results - Net sales and profits at all levels marked record highs. - Earnings structural reforms and way of working reforms gradually penetrated. - Business activities that were well adjusted for diversified health awareness were factors for the strong perform
Slide 3: FY2016 Consolidated Results
3/27 FY2016 Consolidated Results Consolidated results Year on year Compared to forecast Net sales ¥202.5 B +¥6.9 B +4% +¥2.5 B Operating income ¥10.9 B +¥4.2 B +63% +¥1.7 B Ordinary income ¥11.3 B +¥4.3 B +61% +¥1.9 B Net income ¥6.8 B +¥3.3 B +97% +¥1.9 B - Net sales and profits at all levels marke
Slide 4: FY2016 Results by Segment
4/27 FY2016 Results by Segment Unit: 100 million yen Unit: 100 million yen Net sales Operating income FY2015 FY2016 FY2015 FY2016 Rate of Rate of Change Change change change Domestic processed 1,560 1,637 +76 +5% 58 88 30 +53% food business Domestic agriculture 110 115 +5 +5% 7 9 +1 +18% business In
Slide 5: FY2016 Results by Segment
5/27 FY2016 Results by Segment Domestic processed food business and domestic agriculture business: Net sales and operating income Unit: 100 million yen Unit: 100 million yen Net sales Operating income FY2015 FY2016 FY2015 FY2016 Rate of Rate of Change Change change change Domestic processed food b
Slide 6: FY2016 Results by Segment
6/27 FY2016 Results by Segment Unit: 100 million yen Net sales in the Net sales Impact of exchange rates international business FY2015 FY2016 FY2016 (translated at exchange rates for FY2015) Real Impact of Rate of Real Changes growth exchange change change rate rates International business 479 474
Slide 7: Factors Contributing to Changes in Consolidated Operating Income for FY2016
7/27 Factors Contributing to Changes in Consolidated Operating Income for FY2016 Full year of FY2015 67 Unit: 100 million yen Increase due to higher sales 19 Rise in raw material prices, etc. -8 Rise in labor costs and equipment costs -14 Fall in costs 22 Fall in sales promotion cost ratio 13 Effect
Slide 8: Changes on Consolidated Balance Sheet for FY2016
8/27 Changes on Consolidated Balance Sheet for FY2016 Unit: 100 million yen Total assets/liabilities and net assets Current assets +96 (Impact of exchange rates: -15) ¥219.8 B (Impact of exchange rates: -¥3.0 billion) - Increase in cash +175 - Decrease in inventories -40 - Decrease in derivatives cl
Slide 9: Changes in Goodwill for FY2016
9/27 Changes in Goodwill for FY2016 Goodwill ¥6.5 billion (- ¥1.1 billion) Seeds and seedlings Consumer Unit: 100 million yen Dec. 31, 2015 15 61 76 Seeds and seedlings -6 - UG -4 - UG‐Turkey -2 Consumer -5 - PBI -5 Dec. 31, 2016 9 56 65 Unit: 100 million yen 0 20 40 60 80 - Decreased ¥800 million d
Slide 10: Cash Flows for FY2016
10/27 Cash Flows for FY2016 Unit: 100 million yen FY2015 FY2016 Change Cash flows from operating activities (A) +120 +188 +68 Cash flows from investing activities (B) -110 -186 -76 Disbursement and proceeds pertaining to time deposits and securities (C) +50 -102 -152 Free cash flows (A+B-C) -40 +104
Slide 11: Today’s Topics
11/27 Today’s Topics I. FY2016 Financial Results II. Long-Term Vision and Progress of Mid-Term Management Plan III. Challenges for FY2017 IV. FY2017 Results Forecasts Copyright © KAGOME CO., LTD. All rights reserved.
Slide 12: Long-Term Vision: Shift from a tomato company to a vegetable company
12/27 Long-Term Vision Long-term vision Shift from a tomato company to a vegetable company Copyright © KAGOME CO., LTD. All rights reserved.
Slide 13: Long-Term Vision
13/27 Long-Term Vision Salads Services Juices Extension of healthy life expectancy ¥300 B Net sales: Soups Seasonings Operating income: ¥20 B Frozen Supplements ingredients Copyright © KAGOME CO., LTD. All rights reserved.
Slide 14: Long-Term Vision: Increase the female employment ratio to 50% or more
14/27 Long-Term Vision Increase the female employment ratio to 50% or more at all levels (employees, management-level employees and officers) For more sustainable growth Copyright © KAGOME CO., LTD. All rights reserved.
Slide 15: Progress of Mid-Term Management Plan
15/27 Progress of Mid-Term Management Plan Upward revisions to quantitative targets for FY2018 in the mid-term management plan Consolidated net sales: ¥220 billion (as initially planned) Consolidated operating income margin: 5% ¥11 .0 billion 6% ¥13.2 billion ROE: 5% 8% （単体） （単体） Copyright © KAGOME
Slide 16: Progress of Mid-Term Management Plan
16/27 Progress of Mid-Term Management Plan Net sales plan Operating income plan Unit: 100 million yen International business 2500 Domestic agriculture business Unit: 100 million yen International business Domestic processed food business 140 Domestic agriculture business ¥13.2 B ¥220.0 B Domesti
Slide 17: Progress of Mid-Term Management Plan
17/27 Progress of Mid-Term Management Plan Marginal income ratio Ratio of break-even point to sales 0.5% 90.0% 0.0% 88.0% 9.5% 86.0% 9.0% 8.5% 84.0% 8.0% 82.0% 7.5% 80.0% 7.0% 78.0% 6.5% Mid-term Mid-term management plan 76.0% management plan 6.0% 5.5% 74.0% 2014年 2014 2015年 2015 2016年 2016 2017
Slide 18: Today’s Topics
18/27 Today’s Topics I. FY2016 Financial Results II. Long-Term Vision and Progress of Mid-Term Management Plan III. Challenges for FY2017 IV. FY2017 Results Forecasts Copyright © KAGOME CO., LTD. All rights reserved.
Slide 19: Focused Challenges for FY2017: Domestic Processed Food Business
19/27 Focused Challenges for FY2017: Domestic Processed Food Business Evolved response to diversified health awareness [Domestic processed food business] Proposal of new foods with functional claims Sales plan Operating income plan 101% 102% Proposal of new beverage drinking scenarios 1,450 ¥164.8 B
Slide 20: Focused Challenges for FY2017: Domestic Agriculture Business
20/27 Focused Challenges for FY2017: Domestic Agriculture Business Evolved response to diversified health awareness [Domestic agriculture business] Strengthened sales of Sales plan Operating income plan super-vegetable series 111% 74% Strengthened 1,480 readiness for supply- 1,475 demand conditions
Slide 21: Focused Challenges for FY2017: International Business
21/27 Focused Challenges for FY2017: International Business Evolved response to global food services Expansion into the United [International business] States, Europe and Sales plan Operating income plan Australia + Asia 109% 154% 1,480 Alliance with Ingomar 1,470 ¥1.9 B [World ranking of volume of
Slide 22: Focused Challenges for FY2017: Earnings Structural and Way of Working Reforms
22/27 Focused Challenges for FY2017: Earnings Structural and Way of Working Reforms Earnings structural reforms Way of working reforms Rate of paid Inventory holidays taken reduction 70% Improved logistics Work from home efficiency Improved production Flextime system efficiency Copyright © KAGOME CO
Slide 23: Today’s Topics
23/27 Today’s Topics I. FY2016 Financial Results II. Long-Term Vision and Progress of Mid-Term Management Plan III. Challenges for FY2017 IV. FY2017 Results Forecasts Copyright © KAGOME CO., LTD. All rights reserved.
Slide 24: FY2017 Full-Year Results Forecasts
24/27 FY2017 Full-Year Results Forecasts Unit: 100 million yen Unit: 100 million yen Net sales Operating income FY2016 FY2017 FY2016 FY2017 Rate of Rate of Change Change change change Domestic processed food 1,637 1,648 +11 +1% 88 90 +1 +2% business Beverages 796 800 +4 +0% 40 42 +2 +4% Food 229 232
Slide 25: FY2017 Full-Year Results Forecasts
25/27 FY2017 Full-Year Results Forecasts Results forecasts by segment Unit: 100 million yen Unit: 100 million yen Net sales Operating income FY2016 FY2017 FY2016 FY2017 Rate of Rate of Change Change change change Domestic processed 1,637 1,648 +11 +1% 88 90 +1 +2% food business Domestic agricultur
Slide 26: Cash Flows, Investments and Shareholder Return from FY2017 to FY2019
26/27 Cash Flows, Investments and Shareholder Return from FY2017 to FY2019 Business investments/ Operating cash flow repayment of loans ¥56.0 B ¥21.0 B Fixed investments Shareholder return ¥28.0 B ¥7.0 B Expected dividend in FY2017 27 yen (up 2.5 yen) Copyright © KAGOME CO., LTD. All right
Slide 27: Note
27/27 Note All information contained herein on the current plans, forecasts and strategies of Kagome that does not consist of historical facts is based on judgments made by Kagome’s management from currently available information. We therefore request that you refrain from relying comprehensively an