Meiji Holdings Co., Ltd. · TSE:2269

Meiji — FY2013 Earnings Presentation

33 slides from Meiji's earnings presentation, May 20, 2014

  1. Slide 1: Financial Results for the Fiscal Year ended March 31, 2014

    Financial Results - For the Fiscal Year ended March 31, 2014 - May 20, 2014

  2. Slide 2: Contents

    Contents 1. Our Initiatives for Achieving 2. Overview of Financial Results and Forecasts  Business forecasts and other forward-looking statements are based on information available at the time of the release of this presentation and reasonable assumptions made by the Company. Actual results could d

  3. Slide 3: Medium-Term Management Plan

    Medium-Term Management Plan Basic policies Initial Targets Higher profitability and strategic investments FYE March 2015 for future growth Net sales 1.19 trillion yen 1. Strengthen and expand existing businesses (growth and priority businesses) Op. income 40.0 billion yen 2. Foster growth businesses

  4. Slide 4: FYE March 2014 Initial Plan and Revised Plan

    HD FYE March 2014 Initial Plan and Revised Plan (billions of yen) FYE March  Strategic investments in FYE March 2014 2013 growth and priority Results Initial plan Revised plan YOY businesses change  Restructuring to improve Meiji HD Net sales 1,126.5 1,140.0 1,128.0 +0.1% [Consolidated] Operating

  5. Slide 5: FYE March 2014 Summary and Consolidated Earnings

    HD FYE March 2014 Summary and Consolidated Earnings (billions of yen) FYE March FYE March 2014 2013 Revised YoY change vs. plan Results Results plan (Rate) (Amount) (Rate) (Amount) Meiji HD Net sales 1,126.5 1,128.0 1,148.0 +1.9% +21.5 +1.8% +20.0 [Consolidated] Operating income 25.8 34.0 36.4 +41.1

  6. Slide 6: FYE March 2014 Summary – Segment Highlights

    HD FYE March 2014 Summary – Segment Highlights  Implemented organizational reforms in April 2013 to promote structural reform across all businesses - Probiotics yogurt remained strong and significantly improved product mix in Dairy Food segment business - In Confectionary and Healthcare and Nutriti

  7. Slide 7: FYE March 2015 Forecasts

    HD FYE March 2015 Forecasts (■Sales: ¥ billion) (■Op. income: ¥ billion) 1,400 70 Initial Targets 15.3 (Forecast) Management Business integration reorganization Net sales 1.19 trillion yen 1.14 trillion yen 1,200 1,106.6 1,111.0 1,109.2 1,126.5 1,148.0 1,140.0 60 Op. income 40.0 billion yen 37.5 bil

  8. Slide 8: Strategies in Food Segment

    Food Strategies in Food Segment  Continue structural reforms and cost reductions  Enhance competitiveness of winning brands  Absorb impact of rising raw material costs (■Sales: ¥ billion) (■Op. income: ¥ billion) 1,400 70 1,200 60 988.8 986.3 1,001.5 1,015.2 1,006.0 1,000 50 800 40 28.1 30.0 600

  9. Slide 9: Continue Structural Reforms and Cost Reductions

    (billions of yen) 30.0 15.3E - Op. income +9.2 Continue Structural Reforms and Cost Reductions Profitability improvement, etc. FYE March 2015 approach -11.1 Raw material procurement +3.8 Business Growth 28.1 14.3 - Op. income Changes in Operating Income +6.4 Profitability improvement, etc. ｜ Copyrig

  10. Slide 10: Dairy: Expand Income to Address Major Cost Increases

    Food Dairy: Expand Income to Address Major Cost Increases (¥ billion) Trend in Sales and Op. income FYE March 2014 FYE March 2015 600 60 400 40 Decrease Increase Increase factors factors 25.3 26.2 factors +10.2 -9.3 18.4 Decrease +11.4 200 20 factors -4.5 0 0 13.3 14.3 15.3E  Increase sales of prob

  11. Slide 11: Dairy: Establish Overwhelming Superiority in Yogurt Market

    Food Dairy: Establish Overwhelming Superiority in Yogurt Market (□Our sales: ¥ billion) (▲Market scale: ¥ billion) 200 400 Our market share: Probiotics net sales 180 44% 360 FYE March 2015 (forecast) Yogurt market scale +9% year on year 160 (Right axis) 320  Aggressive marketing activities 140 280

  12. Slide 12: Confectionery: Promote Sales Growth, Production and Sales Efficiency

    Food Confectionery: Promote Sales Growth, Production and Sales Efficiency (¥ billion) Trend in Sales and Op. income 200 20 FYE March 2014 FYE March 2015 160 16 120 12 Increase Decrease factors Increase factors +4.9 80 6.8 8 Decrease factors -3.3 5.2 factors +4.8 40 3.3 4 -2.9 0 0 13.3 14.3 15.3E  F

  13. Slide 13: Chocolate: Enhance and Expand Chocolate and Ice Cream Sales

    Food Chocolate: Enhance and Expand Chocolate and Ice Cream Sales Chocolate Ice cream  Expand Essel Super Cup (■Sales: ¥ billion) Our market share: 100 Approx. 24%  Expand Chocolate Ice 80 Cream series lineup 60  Promote The Premium Gran 40 13.3 14.3 15.3E Chocolate net sales FYE March 2015 (forec

  14. Slide 14: Healthcare and Nutritionals: Expand Mainstay Brands

    Food Healthcare and Nutritionals: Expand Mainstay Brands and Improve Sales Productivity (¥ billion) Trend in Sales and Op. income 100 10 FYE March 2014 FYE March 2015 80 8 60 6 40 3.1 4 Decrease Increase 2.7 Increase factors factors factors 20 2 Decrease -2.1 +2.5 factors +4.2 -0.9 -0.5 0 0 13.3 14.

  15. Slide 15: Overseas: Key Areas are China, Asia, and the U.S.

    Food Overseas: Key Areas are China, Asia, and the U.S. The U.S. China  Sales of Overseas business Asia (¥ billion) (Breakdown) 61.0 60 Non-consolidated companies 39.0 Affiliates 40 20.9 accounted for by equity method 20 31.9 Consolidated subsidiaries and exports 0 12.3 15.3E 15 ｜ May 20, 2014 ｜ Cop

  16. Slide 16: Overseas: Topics Concerning Dairy Products

    Food Overseas: Topics Concerning Dairy Products  Thailand: Enhance fresh dairy business - CP-Meiji Co., Ltd.(equity method applied)  Sales and exports of chilled milk and yogurt products are steady  Increase production capacity  From August 2013, Bulgaria yogurt products sold at CVS, and develop

  17. Slide 17: Overseas: Topics Concerning Confectioneries

    Food Overseas: Topics Concerning Confectioneries  Asia/the U.S.: Expansion of chocolate snacks business - Meiji Seika (Singapore) Pte. Ltd., Meiji America Inc., etc. (consolidated)  Consolidated net sales of 20 billion yen with focus on chocolate snacks  Utilize production and sales sites in Sing

  18. Slide 18: Strategies in Pharmaceuticals Segment

    Pharma Strategies in Pharmaceuticals Segment  Offset impact of NHI price revisions  Expand domestic ethical pharmaceuticals business as Specialty & Generic Pharma (■Sales: ¥billion) (■Op. income: ¥ billion) 200 40 150 135.1 136.5 30 124.2 125.2 127.3 100 20 50 7.5 8.1 8.3 10 6.4 7.6 0 0 11.3 12.3

  19. Slide 19: Offset impact of NHI price revisions

    Pharma Offset impact of NHI price revisions (¥ billion) Trend in Consolidated Op. Income  Increase domestic sales of ethical NHI drug price revision: ¥6.0 bn ¥9.2 bn pharmaceuticals and GE 10 ¥7.4 bn 8.3  Exploit global production system to improve 8.1 7.5 7.6 production capacity and reduce costs

  20. Slide 20: Specialty & Generic "Fusion" Strategy

    Pharma Specialty & Generic “Fusion” Strategy (¥ billion) Trend in Consolidate Sales 160 NHI drug price  Expansion of domestic ethical revision pharmaceuticals 140 136.5  Promote the anti-depressant drug 135.1 124.2 125.2127.3 120 REFLEX and other mainstay products 100  GE product lineup (54 ingre

  21. Slide 21: Business Expansion and Low-cost Operations on Global Scale

    Pharma Business Expansion and Low-cost Operations on Global Scale Tedec-Meiji Farma, S.A. Sales with partner to ・ Manufacturing and sales hub establish business platform ・ Sales of Antibiotic MEIACT in Spain and overseas Meiji Pharma ・Establish R&D center and develop (Shandong) Co., Ltd. global GE p

  22. Slide 22: Accelerating R&D

    Pharma Accelerating R&D R&D pipeline FYE March 2014 FYE March 2015 ◆In-house ME1111 [Antionychomycosis] ◆ PhaseⅠ PhaseⅡ (Overseas) (Overseas) Infectious diseases ME1100 Arbekacin [HABP/VABP] ◆ PhaseⅠ (Overseas) OP0595 [β-lactamase inhibitor] ◆ PhaseⅠ SME3110 Fluvoxamine [SSRI, Pedeatriv OCD] Additio

  23. Slide 23: Summary

    HD Summary Medium-Term Management Plan  Continue profitability improvement and strategic investment initiatives  Flexible response to market changes  Successful completion of TAKE OFF 14 23 ｜ May 20, 2014 ｜ Copyright © 2014 Meiji Holdings Co., Ltd. All rights reserved.

  24. Slide 24: 2. Overview of Financial Results and Forecasts

    2. Overview of Financial Results and Forecasts 24 ｜ May 20, 2014 ｜ Copyright © 2014 Meiji Holdings Co., Ltd. All rights reserved.

  25. Slide 25: FYE March 2014 Consolidated Earnings

    HD FYE March 2014 Consolidated Earnings (billions of yen) Revised YoY change vs. plan Results plan (Rate) (Amount) (Rate) (Amount) Meiji HD Net sales 1,128.0 1,148.0 +1.9% +21.5 +1.8% +20.0 [Consolidated] Operating income 34.0 36.4 +41.1% +10.6 +7.3% +2.4 Ordinary income 35.5 39.0 +34.2% +9.9 +10.1%

  26. Slide 26: FYE March 2014 Consolidated Operating Income

    HD FYE March 2014 Consolidated Operating Income (billions of yen) By segment Results Food Pharma Other FYE March 2013 25.8 19.3 6.4 0.0 Due to increased/ decreased sales +12.9 +9.1 +3.8 － Cost reduction +7.9(*1) +7.5 +0.4 － Sales promotion and advertising expenses +0.1 +1.7 -1.6 － Procurement costs

  27. Slide 27: FYE March 2015 Forecasts

    HD FYE March 2015 Forecasts (billions of yen) 1st half 2nd half Full-year Plan YoY change Plan YoY change Plan YoY change Meiji HD -1.4% -0.0% -0.7% [Consolidated] Net sales 555.0 -7.9 585.0 -0.1 1,140.0 -8.0 -9.4% +12.1% +2.7% Operating income 14.4 -1.4 23.1 +2.6 37.5 +1.1 -18.5% +8.1% -4.1% Ordina

  28. Slide 28: Forecasts by Business in Food Segment

    HD FYE March 2015 Forecasts by Business in Food Segment (billions of yen) 1st half 2nd half Full-year Plan YoY change Plan YoY change Plan YoY change -2.6% -1.8% -2.2% Net sales 313.0 311.6 624.6 -8.2 -5.8 -14.1 Dairy +4.1% +2.8% +3.5% Operating income 12.6 13.5 26.2 +0.5 +0.4 +0.9 +4.1% -0.8% +1.5%

  29. Slide 29: FYE March 2015 Consolidated Operating Income

    HD FYE March 2015 Consolidated Operating Income (billions of yen) By segment Plan Food Pharma Other FYE March 2014 (Results) 36.4 28.1 8.3 0.0 Due to increased /decreased sales +11.4 +3.8 +7.6 － NHI drug price revision -9.2 － -9.2 － Procurement costs -11.1 0.0 -11.1 － of raw materials Cost increase

  30. Slide 30: Raw Material Price Increase

    HD FYE March 2015 Raw Material Price Increase  Impact of huge increase in raw material prices in Food segment Full year 1st half 2nd half 11.1 billion yen 7.0 billion yen 4.1 billion yen  Dairy: 7.1 billion yen / raw milk prices (for drinking milk + for processed products), imported dairy ingredie

  31. Slide 31: Consolidated Financial Position as of March 31, 2014

    HD Consolidated Financial Position as of March 31, 2014 (billions of yen) As of Mar. 31, YoY As of Mar. 31, YoY 2014 change 2014 change Current assets 329.0 -12.1 Current liabilities 261.4 -48.2 Cash and deposits 19.5 +2.6 Notes and accounts payable 94.3 -15.1 Short-term bank loans, current Notes an

  32. Slide 32: Capital Expenditures, Depreciation, Cash Flow, Shareholder Returns

    Capital Expenditures, Depreciation, Cash Flow, Shareholder HD Returns (billions of yen) FYE March 2012 FYE March 2013 FYE March 2014 FYE March 2015 Results Results Results 1st half plan Full-year plan Initial plan Capital expenditures 38.3 37.6 47.0 31.5 55.0 161.7 Depreciation and amortization 40.8

  33. Slide 33: For the next 100 years

    For the next 100 years, Contribute to “Tastiness, Enjoyment Health and Reassurance” 33 ｜ May 20, 2014 ｜ Copyright © 2014 Meiji Holdings Co., Ltd. All rights reserved.

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