Meiji Holdings Co., Ltd. · TSE:2269
Meiji — Investor Day (March 2022)
65 slides from Meiji's investor day presentation, Mar 31, 2022
Slide 1: Meiji's China Business
Business Strategy Conference Food Segment Meiji’s China Business March 31, 2022 0 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 2: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 3: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 4: Positioning of China Business in Meiji Group's 2026 Vision
Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan Key Strategies for Meiji Group 2026 Vision Establish a growth foundation in overseas markets Target: Increase the overseas sales ratio in the entire Group Meiji Group 2026 Vision Quantitative target for ove
Slide 5: Positioning of China Business in 2023 Medium-Term Business Plan
Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan Business Strategy for the Food Segment China: Priority Areas for Strengthening Overseas Expansion 2023 Medium-Term Business Plan Setting higher goals than other areas Driving force in overseas business
Slide 6: China: The top priority area for overseas business
Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan China: The top priority area for overseas business Population and GDP are expected to continue to grow The market size for our business domain in China is Market size larger than that of other countries
Slide 7: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 8: Our Mission for China Business
2. Our Mission for China Business Mission We will provide our products to as many as customers in China. We produce products taking advantage of the technology, knowledge, and experience we have cultivated in Japan. Thus contributing to their "healthy and rich dietary." Our strength Know-how culti
Slide 9: Our Mission for China Business
2. Our Mission for China Business Contributing to a “healthy and rich diet" for consumers of all ages in China by developing a wide variety of products Infants Children Adults Elderly Childcare product Milk Yogurt Dairy products Confectionary Cheese Enteral formula Nutritional Nursing care Ice cream
Slide 10: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 11: Medium- to Long-Term Business Targets for China Business
3. Medium- to Long-Term Business Targets for China Business Plans to dramatically expand operations in FY2026 Launch strategic products Start new Meiji China business structure Start operation in new plants Sales Plan for China Business Start operation (CNY million) new plant Start Meiji China new b
Slide 12: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 13: Investment Plan for China Business
4. Investment Plan for China Business Make necessary investment to achieve the business plan Invest in a ranching company (Aust Asia) ・Acquire stable and high-quality raw milk procurement ・For expansion of milk business ・USD 254.4 million Established Meiji Dairies (Tianjin) in 2019 ・Expand busin
Slide 14: Investment Plan for China Business
4. Investment Plan for China Business Strengthen production systems in each business to achieve sales targets for the Meiji Group 2026 Vision Build three factories in the milk and yogurt business Build a optimal production system to each business Meiji Food (Guangzhou): Production sites in Chi
Slide 15: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 16: Establishment of Meiji China: Purpose and Significance
5. Establishment of Meiji China: Purpose and Significance Build a business foundation in China to achieve the Meiji Group 2026 Vision Transfer authority to Meiji China* and prompt group-wide business operations to expand business in China Strengthen internal management systems and efficient busi
Slide 17: Transfer authority and accelerate business management
5. Establishment of Meiji China: Purpose and Significance Transfer authority and accelerate business management Manage business locally Individual businesses (Head office) Local management in China Previous Current Short-term Medium- and long- Short-term Medium- and long- project term project pr
Slide 18: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 19: Meiji China: New Organization Structure
6. Meiji China: New Organization Structure Previousely, each local company manage business independently From January 2022, sales and marketing functions were consolidated in Meiji China. Conceptual Diagram for the Transition to the New Meiji China System ... Corporation ... Feature Meiji China Shan
Slide 20: New product development center in Meiji China
6. Meiji China: New Organization Structure Planning new product development center in Meiji China Establish a system to develop products swiftly that reflects local needs and preferences in China, where market changes rapidly Conceptual diagram of product development system in Meiji China Subsid
Slide 21: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 22: Market Environment in China
7. Market Environment in China The most recent growth potential for each channel is as follows The business environment has changed significantly due to the expansion of CVS and New Retail Focusing our management resources on growth channels, we will increase sales Foods for Channel Hyper SM CVS
Slide 23: Examples of EC activities: Live commerce
Reference (examples of EC activities) Live commerce Live commerce linked to live streaming platform by influencers is the latest trend Below are some of the examples 22 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 24: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 25: Milk and Yogurt
Milk and Yogurt 24 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 26: Milk and yogurt market in China
8. Overview of Each Business (Milk and Yogurt) Milk and yogurt market in China Expanding annually and is expected to continue to expand. The growth rate of chilled milk is higher than that of long-life milk. Market Size* for Milk and Yogurt in China (Unit: CNY 100 million) 2,500 * Total of chill
Slide 27: Competition in the milk and yogurt market
8. Overview of Each Business (Milk and Yogurt) Competition in the milk market The number of manufacturers entering chilled milk market are increasing Private brand products are becoming more popular. Differentiated products are increasing: Containers and manufacturing methods Competition in the
Slide 28: Meiji's sales trends (Milk and Yogurt)
8. Overview of Each Business (Milk and Yogurt) Meiji’s sales trends Milk for the consumer market Sales decreased in FY2021 Due to the higher sales in the previous year + harsh competition Milk for professional use Sales increased due to acquisition of a new customer Expected to expand in FY202
Slide 29: Our Products
8. Overview of Each Business (Milk and Yogurt) Our Products Milk Fermented milk drink Yogurt Chilled milk Low-fat milk Fermented milk drink Meiji Bulgaria Yogurt Meiji Bulgaria Yogurt Drink Meiji Bulgaria Meiji Bulgaria Meiji Bulgaria yogurt Meiji Bulgarian Yogurt Meiji Bulgarian Yogurt Yogurt Drink
Slide 30: Business Expansion Strategy for milk and yogurt
8. Overview of Each Business (Milk and Yogurt) Business Expansion Strategy for milk and yogurt Use expertise fostered in Japan (Brand, knowledge and technology) Basic Launch high quality, high value-added products Strategy Develop business partnerships mainly in North and South China and expan
Slide 31: Enhance our product appeal
8. Overview of Each Business (Milk and Yogurt) Enhance our product appeal: Improve existing products Launch high-value-added products manufactured in new plants Existing products New products Tianjin New Plant Guangzhou New Plant (Start operation in January 2023) (Start operation in October 2023) Ne
Slide 32: Food for professional use
Food for professional use 31 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 33: Target market
8. Overview of Each Business (Food for professional use) Target market Café Tea market Convenience store Bakery 32 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 34: Café and coffee market in China
8. Overview of Each Business (Food for professional use) Café and coffee market in China Coffee market in China (our major battleground for professional use) Continue growing and is expected to reach CNY 145.4 billion in 2020 Coffee consumption per person also continues to grow Trends in the Chi
Slide 35: Meiji's Sales Trends (Food for professional use)
8. Overview of Each Business (Food for professional use) Meiji’s Sales Trends Café chains are the main customers of chilled milk, which accounts for the majority of sales. The cream is sold to bakeries, confectioneries, CVS, etc. In FY2021, sales increased significantly from the previous year du
Slide 36: Our Product lines
8. Overview of Each Business (Food for professional use) Our Product lines Milk and Cream Ice Cream Meiji Milk Milk for food service industry Bulk Ice 2.1 kg 6 flavors: vanilla, chocolate, adzuki beans, Coffee milk matcha green tea, mango, and strawberry Product Features: Enhance the Chocolate flavo
Slide 37: Our strategy (Food for professional use)
8. Overview of Each Business (Food for professional use) Our strategy The only manufacturer in China Basic Can manufacture high-quality dairy products, chocolate and ice cream Strategy for professional use in-house Differentiate our products and achieve further growth 1. Strengthen sales proposa
Slide 38: Confectionery
Confectionery 37 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 39: Chocolate market in China
8. Overview of Each Business (Confectionary) Chocolate market in China China's chocolate market in 2021 was CNY 22,280 million (+ 6.6% year on year) Chocolate market has the potential to grow at an accelerating rate by 2030 The keywords for expanding our sales are "health," "summer," and "gift
Slide 40: Meiji's Sales Trends (Confectionery)
8. Overview of Each Business (Confectionary) Meiji’s Sales Trends Sales have been steadily increasing since FY2017 Expand sales towards FY2026 A new plant in Guangzhou will start operation in autumn 2023 Expand new product lines 700 Sales of Confectionery (CNY million) 600 500 400 300 200 10
Slide 41: Melty Kiss
8. Overview of Each Business (Confectionary) Melty Kiss Our company Products Our most sold brand in China Maximize sales: Strengthen • About 70% of sales comes from four brands: channel-specific initiatives Melty Kiss, Chocolate covered nuts, Chocolate Enhance marketing using Ms. Yui Aragaki,
Slide 42: Strategy for confectionery
8. Overview of Each Business (Confectionary) Strategy for confectionery Expand business by differentiating our products from other Basic companies’ Strategy Increase brand exposure by using: Health, high added value, and Meiji’s strengths 1. Expand territory into untouched areas Improve cooper
Slide 43: Boost sales of strategic products
8. Overview of Each Business (Confectionary) Boost sales of our strategic products, including chocolate bar, by developing new market Put more efforts in EC business, that is rapidly growing Boost sales of our strategic products Put more efforts in EC business Chocolate bar Chocolate EC flagship
Slide 44: Competition in the chocolate market
8. Overview of Each Business (Confectionary) Competition in the chocolate market Trend in Market Share Company A Company B Company C Company D Company E Meiji‘s share target: Source: Euromonitor 3% in 2030 43 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 45: Ice Cream
Ice Cream 44 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 46: Market for ice cream
8. Overview of Each Business (Ice Cream) Market for ice cream Market size: CNY 49.9 billion in FY2021 Market size is shrinking by volume Forecasting to grow by value Small to medium sized manufacturer becoming obsolete Launching high value-added products Market volume Market value (thousand ton)
Slide 47: Competition in the ice cream market
8. Overview of Each Business (Ice Cream) Competition in the ice cream market Market Share (FY2021) Company A 18% Company 9% B* Other 8% Company C 5% Company D* *Foreign capital companies Around 1% Source: Euromonitor 46 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 48: Our sales trend (Ice Cream)
8. Overview of Each Business (Ice Cream) Our sales trend Grew more than CAGR +20% of the last 5 years South China: our firm business base Expand to Inland China, East and North China Grew sales toward FY2026 by increasing production capacity Ice cream business sales trend (CNY million) 700 600
Slide 49: Our Products
8. Overview of Each Business (Ice Cream) Our Products Novelty ice cream Ice cream multipacks Novelty Multipacks New Products New Products in 2022 in 2022 48 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 50: Strategies for ice cream
8. Overview of Each Business (Ice Cream) Strategies for ice cream Differentiate our products from competitors’ Leverage our strengths in product development that take advantage of Basic Japan's knowledge and technology Strategy Expand our business While focusing on the South China area, increase
Slide 51: Ice cream coverage by province
8. Overview of Each Business (Ice Cream) Almost all of provinces in China was covered in 2021 The coverage area has been expanded year by year Expand our business by increasing our market share in each province FY2015 FY2021 36％ 97％ Ice Cream Business Coverage by Province *Meiji’s estimate 50 © Meij
Slide 52: Agenda
Agenda 1. Positioning of China Business in Meiji Group’s 2026 Vision and 2023 Medium-Term Business Plan 2. Our Mission for China Business 3. Medium- to Long-Term Business Targets for China Business 4. Investment Plan for China Business 5. Establishment of Meiji China: Purpose and Significance 6. Mei
Slide 53: Functional yogurt
Functional yogurt 52 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 54: Probiotics Market and Competitive Situation
9. Business Overview for Our Strategic Products (Functional yogurt) Probiotics Market and Competitive Situation Probiotics market is the new category of business in Chin and is just beginning to grow, thus still small Chinese customers beginning to understand the importance of Lactobacillus grad
Slide 55: Strategies for Functional Yogurt
9. Business Overview for Our Strategic Products (Functional yogurt) Strategies for Functional Yogurt Create a functional yogurt market ahead of competitors: Basic Strategy Leverage expertise and knowledge accumulated in Japan Enjoy first-mover advantage R-1 and LG21 R-1 LG21 ・chilled yogurt eating l
Slide 56: Target for our functional yogurt
9. Business Overview for Our Strategic Products (Functional yogurt) Target for our functional yogurt Speaking of functional yogurt, It’s Meiji Effective communication through strategic marketing focusing on market characteristics in China x3 x6 FY21 FY23 FY26 (Prospect) (Plan) Image Target Pioneer i
Slide 57: Attractive floor display and advertising
9. Business Overview for Our Strategic Products (Functional yogurt) Attractive floor display and advertising and promotion to increase our brand exposure using know-hows accumulated in Japan Banner at office elevator Live commerce linked Subway station TikTok Ads to live streaming platform 56 © Meij
Slide 58: Disseminate information on health value of Lactobacillus
9. Business Overview for Our Strategic Products (Functional yogurt) Disseminate information on health value of Lactobacillus Publish papers on R-1 Lactobacillus Collaboration with academic societies A study in which over 4000 elementary school students in Presented as an innovation product in the pr
Slide 59: SAVAS
SAVAS 58 © Meiji Holdings Co., Ltd. All rights reserved.
Slide 60: Sports Protein Market Size and Growth Rate
9. Business Overview for Our Strategic Products (SAVAS) Sports Protein Market Size and Growth Rate Expected to grow at a high rate Estimated market size: CNY 120 billion in 2025 Sports Protein Market Size* Euromonitor Passport 2020 ■ Powder ■ Bar ■ Ready to Drink JPY 100 million JPY 100 million * No
Slide 61: Sports Promotion Policy by the Government
9. Business Overview for Our Strategic Products (SAVAS) Sports Promotion Policy by the Government The government has been keep continuing to promote sports. The government announced to increase the percentage of people who engaged in sports and exercise activities on a daily basis in the Nationa
Slide 62: Our competitors
9. Business Overview for Our Strategic Products (SAVAS) Our competitors ・中国プロテイン Market Share メーカー別シェア in 2020 Meiji‘s share: Market Share 0.05% 2020 2018 Change Launched in August 2020 Other *Meiji’s estimate 22.3% Company 1 Company A 31.9% 31.8% 0.1% A* 31.9% 2 Company B 13.9% 14.7% -0.8% F 3.9% 3
Slide 63: Our Sales Trends
9. Business Overview for Our Strategic Products (SAVAS) Our Sales Trends SAVAS was launched in China in August 20 Opened a flagship store in T-MALL and sold online Sales growing steadily Screenshot in T-MALL 1000 yuan Changes in sales in 2020 and 2021 700 ■ 2020 Sales 600 ■ 2021 Sales 500 400 30
Slide 64: SAVAS Strategy
9. Business Overview for Our Strategic Products (SAVAS) SAVAS Strategy Grow business Expand the product lines of powdered protein Launch ready-to-drink (RTD) and ready-to-eat (RTE) products [Powder] [RTD] [RTE] Concept As the protein consumption in China increases, anticipating consumers in China
Slide 65: Information in this material is not intended to solicit sale or purchase of
Information in this material is not intended to solicit sale or purchase of shares in Meiji Holdings. The final decision relating to investments should be made based on the judgment of users themselves. Business forecasts and other forward-looking statements are based on information available at