Ariake Japan Co., Ltd. · TSE:2815
Ariake Japan — H1 FY2024 Earnings Presentation
25 slides from Ariake Japan's earnings presentation, Nov 10, 2023
Slide 1: FY2024 Interim Financial Results
FY2024 Interim Financial Results (~~ April 1, 2023—September 30, 2023 rermenramecs November 10, 2023 ARIAKE JAPAN Co., Ltd. (Code number: 2815)
Slide 2: Contents
Contents 02 Consolidated and Non-consolidated Net 15 Ratio of Sales by Category and Changes Sales 16-22 Current Status and Future Business Plans 04 Consolidated and Non-consolidated in Each Country Operating Income 23 Global Seven-Pillar System 06 Consolidated and Non-consolidated Ordinary Income [S
Slide 3: Consolidated and Non-consolidated Net Sales, First Half
(Millions of yen) 1st half of FY2020 1st half of FY2021 1st half of FY2022 1st half of FY2023 1st half of FY 2024 Ariake Japan 20,190 17,946 19,299 19,838 21,031 mAriake Group 25,453 22,666 25,068 26,413 27,873 ARIAKE JAPAN CO.,LTD.
Slide 4: Consolidated and Non-consolidated Net Sales, Fiscal Years
60,000 50,000 e @ > 40,000 —— . r) 2 © 30,000 = 20,000 10,000 -—— 0 FY2024 FY 2020 FY2021 FY 2022 FY 2023 Planned Ariake Japan 41,371 38,563 40,075 42,687 44,000 mAriake Group 52,329 49,684 52,658 55,698 59,400 ARIAKE JAPAN CO.,LTD. 3
Slide 5: Operating Income, First Half Periods
7,000 6,000 < 5,000 vo > x) 4,000 an i= 2 3,000 = a 2,000 1,000 0) 1st half of 1st half of 1st half of 1st half of 1st half of FY2020 FY2021 FY2022 FY2023 FY2024 Ariake Japan 4,172 3,196 3,724 2,725 2,448 = Operating income margin 20.7% 17.8% 19.3% 13.7% 11.6% = Ariake Group 5,471 4,287 5,046 4,057
Slide 6: Operating Income, Fiscal Years
14,000 12,000 10,000 8,000 6,000 4,000 2,000 ° FY2024 FY2020 FY2021 FY2022 FY2023 Planned Ariake Japan 8,998 7,407 7,551 5,714 6,600 Operating income margin 21.7% 19.2% 18.8% 13.4% 15.0% = Ariake Group 11,789 10,046 10,682 8,455 9,300 Operating income margin 22.5% 20.2% 20.3% 15.2% 15.7% ARIAKE JAPA
Slide 7: Ordinary Income, First Half Periods
(Millions of yen) & r=) Oo o 3,000 2,000 ee 1,000 0 _ as 1st half of | 1st half of 1st half of 1st half of 1st half of FY2020 FY2021 FY2022 FY 2023 FY 2024 Ariake Japan 4,476 3,710 4,216 3,463 3,766 = Ordinary income margin) 22.2% 20.7% 21.8% 17.5% 17.9% = Ariake Group 5,629 | 4,614 5,318 4,636 4,92
Slide 8: Ordinary Income, Fiscal Years
12,000 = 10,000 3 > Ss 8,000 n 4 2 6,000 = 4,000 2,000 ° FY2024 FY2020 FY2021 FY2022 FY2023 Planned Ariake Japan 9,233 8,116 8,357 6,492 7,100 Ordinary income margin 22.3% 21.0% 20.9% 15.2% 16.1% = Ariake Group 11,908 10,675 11,340 9,270 10,000 Ordinary income margin 22.8% 21.5% 21.5% 16.6% 16.8% AR
Slide 9: Net Income, First Half Periods
(Millions of yen) ow [=) So Oo for the First Half Periods ~ 4st half of 4st half of “1st half of 1st half of 1st half of FY2020 FY2021 FY2022 FY2023 FY2024 Ariake Japan 3,126 2,591 2,812 2,415 2,704 = Net incomemargin 15.5% 14.4% 14.6% 12.2% 12.9% m= Ariake Group 3,821 3,183 3,425 2,991 3,315 Net in
Slide 10: Net Income, Fiscal Years
for the Fiscal Years 12,000 = 8,000 S xo) wn —J 2 = 4,000 Ti ° FY2024 FY 2020 FY2021 FY2022 FY2023 Planned Ariake Japan 6,633 5,578 5,841 4.712 5,090 Net income margin 16.0% 14.5% 14.6% 11.0% 11.6% = Ariake Group 8,375 7,277 7,708 6,385 6,900 Net income margin 16.0% 14.6% 14.6% 11.5% 11.6% ARIAKE JA
Slide 11: Net Sales for the First Half Periods: Comparison with FY2023
(Billions of yen) * Subsidiaries’ figures are after consolidation adjustments 1st Half of 1st Half of FY2024 FY2023 Change Currency Results | Results neutral Ariake Japan 21.03, 19.84 1.19 6.0% 6.0% Subsidiaries total* 6.84 6.58 0.27] 4.1%] 1.3% | Asia 4.37, 4.16 0.22 5.2% 6.1% Europe 2.32 2.28 0.04
Slide 12: Operating Income for the First Half Periods: Comparison with FY2023
* Subsidiaries’ figures are after consolidation adjustments (Billions of yen) 1stHalfof | — 1st Half of FY2024 | FY2023 Change Currency Results Results neutral Ariake Japan 2.45 2.73 (0.28)| -10.2%| -10.2% Subsidiaries total* 1.27, 1.33 (0.07)} -5.0%| -6.3% Asia 1.04, 0.99 0.05 4.6% 4.9% Europe 0.22
Slide 13: Non-consolidated Business Summary for the First Half Periods
for t ors) m= Operating income: ¥2,448 million Year-on-year decrease of ¥277 million (-10.2%) (Millions of yen) 3,500 3,000 BEST (634) 2,500 E t {80} ij [Increase in costs] Raw materials ($26) Mainly labor costs 2,000 (Impact of exchange rates (233)) 2.725 Packing & packaging expenses (123) , Fares,
Slide 14: Consolidated and Non-consolidated Capital Expenditures
(Millions of yen) FY 2020 FY2021 FY2022 FY 2023 1st half of FY2024 FY2024 Planned Ariake Japan 639 1,238 744 841 636 1,200 |mAriake Group 1,616 1,846 2,118 3,018 1,752 2,200 ARIAKE JAPAN CO.,LTD. 13
Slide 15: Consolidated and Non-consolidated Depreciation Expenses
Consolidated and Non-consolidated Depreciation Expenses 2,500 2,000 & 1,500 r) n c 8 = 1,000 = 500 |— ° ‘st half of | FY2024 Fy2019 | Fy2020 | Fy2021 | FyY2022 | Fy2023 | ‘Anarof | Event Ariake Japan| 993 964 ont 968 981 475 1,003 mAriake Group| 1,898 1,597 1,505 1,737 1,784 928 2,038 ARIAKE JAPAN C
Slide 16: Ratio of Sales by Category and Changes
[Ariake Japan] Ratio of Sales by Category and Changes Year-on-Year Category Ratio of Sales Change Food manufacturers 20% +2% Restaurants 45% +14% Convenience stores 35% +1% Total 100% +6% ARIAKE JAPAN CO.,LTD. 15
Slide 17: Expansion of Production Facilities
[Ariake Japan] Expansion of Production Facilities No. 2 Plant Ingredients filling equipment for B2C Automatic pouch loader Spray-type retort sterilizer No. 2 Plant Ingredients filling equipment for B2B No. 1 Plant (large package) 6 m3 large mixing tank Quick freezer ARIAKE JAPAN CO.,LTD. 16
Slide 18: Start of UHT Bouillon Sales (Belgium)
[Belgium] Start of UHT Bouillon Sales • We have built an ultra-high-temperature (UHT) treatment facility and expanded the extraction facility at our plant in Belgium, in which we invested ¥2.5 billion. • We will manufacture high-quality UHT straight bouillon using fully natural raw ingredients and w
Slide 19: UHT Bouillon Extraction Facilities
[Belgium] UHT Bouillon Extraction Facilities Extraction tank Concentration equipment Extraction liquid receiving tank ARIAKE JAPAN CO.,LTD. 18
Slide 20: UHT Bouillon Sterilizer and Filling Equipment
[Belgium] UHT Bouillon Sterilizer and Filling Equipment UHT (All) Sterilizing equipment Filling machine Automatic carton former Palatalizer ARIAKE JAPAN CO.,LTD. 19
Slide 21: Expansion of Facilities and Construction of a New Plant (China)
[China] Expansion of Facilities and Construction of a New Plant Expansion of facilities • In order to achieve the sales target of ¥8.5 billion (before consolidation adjustments) in the medium-term business plan for FY2025, we have added extraction, filtration, concentration, and filling lines at N
Slide 22: Expansion of Qingdao Plant Facilities
[China] Expansion of Qingdao Plant Facilities • Expansion of Qingdao Plant facilities to achieve the 8.5-billion-yen sales target in FY2025 10 m3 extraction tank Filtration equipment Vacuum concentrator 5 m3 mixing tank Ingredients filling equipment（small pouches for B2C) ARIAKE JAPAN CO.,LTD. 21
Slide 23: Re-entry into the U.S. Market
[U.S. Plants] Re-entry into the U.S. Market Advancing into the U.S. market again • We have selected a candidate site in Virginia, on the East Coast of the U.S. and are moving forward with a contract. The representative we have dispatched is currently conducting a site survey. B2C entry • We are
Slide 24: Ariake Group's Global Seven-Pillar System
Ariake Group's Global Seven-Pillar System : Henningsen QINGDAO ARIAKE 1 FOODSTUFF CO., LTD: — Hennings’ Nederland B.V Nederland B.V. fz caaeah soll QINGDAO ARIAKE / Ariake Europe NV FOODSTUFF CO., LTD. & F. P. Natural \ C'oe ARIAKE JAPAN CO., LTD. Ingredients SAS ° eet TAIWAN ARIAKE FOOD CO., LTD. °
Slide 25: Disclaimer
• This presentation material is a tool for understanding our business and is not intended to solicit investment. • Descriptions regarding the future, including financial forecasts contained in this material, are based on certain information currently available to the Company and particular assumptio