Morinaga Milk Industry Co., Ltd. · TSE:2264

Morinaga Milk Industry — 1H FYE March 2016 Earnings Presentation

20 slides from Morinaga Milk Industry's earnings presentation, November 2015

  1. Slide 1: Financial Results Presentation

    Financial Results Presentation - First Half of the Fiscal Year Ending March 31, 2016 - 1. Overview of 1H of FYE March 2016 Financial Results 2. Outlook of Financial Results for the Year Ending March 2016 November 2015

  2. Slide 2: 1. Overview of 1H of FYE March 2016 Financial Results

    1. Overview of 1H of FYE March 2016 Financial Results 2 Copyright © 2015 MORINAGA MILK INDUSTRY CO., LTD

  3. Slide 3: Financial Results for 1H of FYE March 2016

    Financial Results for 1H of FYE March 2016 (Unit: billion yen) 1H of 1H of Year on Year Year-on-Year Change from FYE March FYE March (%) Change initial forecast 2015 2016 Net Sales 315.8 323.3 2.4% 7.5 5.3 Operating Income 5.2 10.1 96.2% 5.0 2.5 Ordinary Income 5.6 10.6 90.3% 5.0 2.6 Profit attribut

  4. Slide 4: Highlights of the First Half

    Highlights of the First Half [Ordinary income] Year-on-year change of +5 billion yen <Change from initial forecast of 2.6 billion yen> Change in selling unit prices (year-on-year change of +4.8 billion yen) <Change from initial forecast of 0.3 billion yen> Carried out price revisions in response to

  5. Slide 5: Factors Attributable to Increases and Decreases in Ordinary Income

    Factors Attributable to Increases and Decreases in Ordinary Income Figures in the < > are changes from initial forecast figures 1H of FYE March 2015 5.6 Change in selling unit prices +4.8 <+0.3> Increased sales volume +0.3 <+0.7> Improved product mix +1.3 <+0.2> Low-cost operation +1.1 <+0.4> Stream

  6. Slide 6: Net Sales by Business, Product Category, and Main Products

    Net Sales by Business, Product Category, and Main Products Net Sales Year on Year Net Sales Year on Year (Billion yen) (%) (Billion yen) (%) B-to-B Business 37.7 -1 % B-to-C Business 170.1 1% Food service & institutional food products 35.0 -1 % Chilled cup-type drinks 24.6 -4 % Functional food mater

  7. Slide 7: 2. Outlook of Financial Results for the Year Ending March 2016

    2. Outlook of Financial Results for the Year Ending March 2016 7 Copyright © 2015 MORINAGA MILK INDUSTRY CO., LTD

  8. Slide 8: Full-Year Business Forecasts

    FYE March 2016 Full-Year Business Forecasts (Unit: billion yen) FYE March FYE March Year on Year Year-on-Year Change from initial 2015 2016 (%) Change forecast Net Sales 594.8 605.0 1.7 % 10.2 5.0 Operating Income 6.8 12.7 86.6 % 5.9 2.4 Ordinary Income 8.2 13.5 64.0 % 5.3 2.5 Profit attributable to

  9. Slide 9: Outlook of Increases/Decreases in Consolidated Ordinary Income (Full Year)

    Outlook of Increases/Decreases in Consolidated Ordinary Income (Full Year) FYE March 2015 8.2 Change in selling unit prices +8.3 Increased sales volume +0.1 Improved product mix +2.2 Low-cost operation +1.5 Streamlined of sales promotion expenses ±0 Increased sales from real estate business +0.3 Inc

  10. Slide 10: Sales Plan by Business and Product Category (FYE March 2016)

    Sales Plan by Business and Product Category (FYE March 2016) Net Sales Year on Year Net Sales Year on Year (Billion yen) (%) (Billion yen) (%) B-to-B Business 76.2 1% B-to-C Business 316.0 1% Chilled cup-type drinks 44.6 -2 % Net Sales Year on Year Chilled tea 17.1 -3 % (Billion yen) (%) Ice cream 4

  11. Slide 11: Business Plan for the Next Medium Term (-FYE March 2020)

    Morinaga Milk Industry Business Plan for the Next Medium Term (FYE March 2016-FYE March 2020) <4 Basic Policies> 1. Rebuilding our business domains for growth 2. Improving asset efficiency 3. Strengthening and promoting rationalization the business base 4. Making a difference in society 11 Copyright

  12. Slide 12: Rebuilding Our Business Domains for Growth

    Rebuilding Our Business Domains for Growth Expanding sales of highly individual products and responding to changing needs Concentrating our resources on growing markets Expanding highly individual and Doubling supply capabilities high-added-value products such as for Greek Yogurt PARTHENO ice creams

  13. Slide 13: Rebuilding Our Business Domains for Growth

    Rebuilding Our Business Domains for Growth Differentiation by promoting functional effects and increasing value addition Expanding B-to-C functional food products and active life food products High protein food series Oral care with Orabaria Enhancement of PREMiL milk Release of GO-UP (September) Co

  14. Slide 14: Rebuilding Our Business Domains for Growth

    Rebuilding Our Business Domains for Growth Facilitating globalization Active medium-to-long term investment Investment in the new Milei GmbH plant to expand sales of high-added-value dairy products (plant to commence operation in summer 2016) Steady development of growth businesses Business partners

  15. Slide 15: Improving Asset Efficiency and Promoting Rationalization

    Improving Asset Efficiency and Promoting Rationalization Rearranging the sales system and improving asset efficiency by selling off idle assets Reorganization of subsidiaries Business transfer of the home-use frozen products business of 1 consolidated subsidiary (November) Stock transfer for 2 uncon

  16. Slide 16: Strengthening the Business Base and Making a Difference in Society

    Strengthening the Business Base and Making a Difference in Society Raising corporate value and responding to changes in the external environment Strengthening the governance system and ensuring full disclosure of information Appointment of more outside directors (1�2) (June) Creation of Corporate Go

  17. Slide 17: (Reference materials)

    (Reference materials) 17 Copyright © 2015 MORINAGA MILK INDUSTRY CO., LTD

  18. Slide 18: (Ref.) Shares of Home-Use Products

    (Ref.) Shares of Home-Use Products (1H of FYE March 2016) Share Category 1H of FYE March 1H of FYE March Rank 2015 2016 Chilled cup-type coffee 51 % 45 % 1 Chilled tea 69 % 71 % 1 Yogurt 12 % 12 % 2 Chilled desserts 23 % 21 % 1 Cheese 13 % 13 % 3 Ice cream 13 % 13 % 3 Note: Shares of home-use produc

  19. Slide 19: (Ref.) Status of Consolidated Subsidiaries

    (Ref.) Status of Consolidated Subsidiaries (1H of FYE March 2016) Net Sales Year on No. of Major Category Year (Billion yen) (%) Companies Subsidiaries · Yokohama milk Production & production sales 61.4 2% 12 industry · MK CHEESE · Daily Foods Sales 71.4 2% 4 · Hokkaido Morinaga Milk Industry Sales

  20. Slide 20: Cautionary Note Regarding Business Forecasts

    Cautionary Note Regarding Business Forecasts Figures for plans, policies and other figures included in this report other than actual past results are forecasts of future business performance, and are calculated based on management's estimates and understanding of the information available to the Com

Morinaga Milk Industry — 1H FYE March 2016 Earnings Presentation on 6ix