Meiji Holdings Co., Ltd. · TSE:2269

Meiji — FY2022 Earnings Presentation

50 slides from Meiji's earnings presentation, May 11, 2023

  1. Slide 1: Financial Results for FYE March 2023 (FY2022)

    Financial Results for FYE March 2023 (FY2022) (From April 1, 2022 to March 31, 2023) May 11, 2023 Note 1. FY2022 Plan was revised on February 9, 2023. 2. A two-for-one common stock split was issued on April 1, 2023. EPS and dividends are calculated on the assumption that the stock split was conducte

  2. Slide 2: 1. Financial Summary for FY2022

    1. Financial Summary for FY2022 1 © Meiji Holdings Co., Ltd. All rights reserved.

  3. Slide 3: Summary for FY2022 Consolidated Results

    Summary for FY2022 Consolidated Results (JPY bn) FY2021 FY2022 FY2022 Results Results YoY Change vs. Plan Plan +4.8% +0.4% Net sales 1,013.0 1,062.1 +49.0 +4.1 1,058.0 Net sales for Overseas +29.1% -0.5% business 92.9 120.0 +27.0 -0.5 120.6 -18.8% -2.7% Operating profit 92.9 75.4 -17.4 -2.0 77.5 Op.

  4. Slide 4: Food: Summary for FY2022

    Food: Summary for FY2022 (JPY bn) FY2021 FY2022 FY2022 Results Results YoY Change vs. Plan Plan +4.8% +0.5% Net sales 826.0 865.6 +39.5 +4.4 861.2 -26.5% -6.9% Operating profit 75.9 55.8 -20.0 -4.1 60.0 Analysis of changes in operating profit Results - FY2021 75.9 : Increase due to price hike +18.3,

  5. Slide 5: Pharmaceutical: Summary for FY2022

    Pharmaceutical: Summary for FY2022 (JPY bn) FY2021 FY2022 FY2022 Results Results YoY Change vs. Plan Plan +4.9% -0.1% Net sales 187.9 197.2 +9.2 -0.2 197.5 +16.4% +8.6% Operating profit 18.6 21.7 +3.0 +1.7 20.0 Analysis of changes in operating profit Results - FY2021 18.6 Due to increased/ decreased

  6. Slide 6: Progress for Meiji ROESG

    Progress for Meiji ROESG® Indicators ROE × Achieve ESG goals ＋ unique to Meiji ＝ The Meiji ROESG® Average of Achievement Add at the end FY2022 Result FY2020-2022 coefficient 11.5% of FY2023 13.8 points x1.2 * Achieve 5: x1.2 Achieve 4: x1.0 Achieve <4: x0.8 Evaluation indicator FY2021 Result FY2022

  7. Slide 7: ESG: Topical Overview in FY2022

    ESG: Topical Overview in FY2022  Promoting our initiatives according to the roadmap for achieving carbon neutrality by 2050 Our efforts to reduce greenhouse gas (GHG) include:  Calculated carbon footprint of products (CFP) for Meiji Organic Milk  Created a business model using the J-Credit Scheme

  8. Slide 8: 2. Plan for FY2023 and Focal Points

    2. Plan for FY2023 and Focal Points 7 © Meiji Holdings Co., Ltd. All rights reserved.

  9. Slide 9: Consolidated Plan for FY2023

    Consolidated Plan for FY2023 (JPY bn) FY2023 FY2023 FY2023 H1 Plan YoY H2 Plan YoY Plan YoY Change Change Change +5.1% +2.5% +3.8% Consolidated Net sales 544.0 +26.4 558.0 +13.3 1,102.0 +39.8 -25.9% +42.7% +3.4% Operating profit 32.0 -11.1 46.0 +13.7 78.0 +2.5 Profit attributable to -40.1% -14.0% -2

  10. Slide 10: Food: Changes in Operating Profit

    Food: Changes in Operating Profit Quickly recover losses due to higher-than-expected 87.3 87.4 82.9 84.1 84.7 cost increases and delayed 75.9 recovery in sales growth 68.2 55.8 56.0 41.6 JPY bn 28.1 19.3 11.4 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

  11. Slide 11: Pharmaceutical: Changes in Operating Profit

    Pharmaceutical: Changes in Operating Profit Consolidated Animal Transferred DM health businesses Bio and Agricultural Restructured generic -3.4 business drug business -5.0 ⁃ Completed portfolio KM Biologics 25.0 Medreich -5.8 -5.0 transformation that became a became a 21.7 is less affected by subsid

  12. Slide 12: Position of FY2023 and Our Focal Points

    Position of FY2023 Period toward next Medium-Term Business Plan Our focal points Strategies to offset cost increase  Penetrate price hikes  Continue marketing investment Change strategies in core business  Recover sales growth and secure stable revenue by pursuing added value  Start business res

  13. Slide 13: Food: Efforts to Overcome Cost Increase

    Food: Efforts to Overcome Cost Increase Effects on operating profit Effect of price hike on sales volume Sales With measures (JPY bn) volume against sales decline Price hike 30.0 +28.0 +29.3 Regain sales volume to the same Price hike + decrease level as before the price hike and in product amount in

  14. Slide 14: Food: Secure Profit by Seeking Added-Value for Core Business

    Food: Secure Profit by Seeking Added-Value for Core Business Functional yogurt Increase added-value  LG21: Favorable, gained new young customers  Shibou Taisaku Yogurt*: Favorable * Yogurt for body fat reduction  R-1: Revive sales, launch a new product that enhanced product appeal with functions

  15. Slide 15: Food: Accelerate to Grow Overseas Business

    Food: Accelerate to Grow Overseas Business  Reorganized to drive growth of Sales by Region (JPY bn) Export/Elimination overseas business in April 2023 USA & Europe SE Asia 87.5 Local currency  Business directors are responsible to China Local 5.4 （YoY） businesses both in Japan and 68.5 currency +8

  16. Slide 16: Pharmaceutical: Grow Vaccine Business -1

    Pharmaceutical: Grow Vaccine Business -1 Vaccine market is expected to grow steadily Promote initiatives linked to Developing Biopharmaceutical Manufacturing Sites to Strengthen Vaccine Production Project Offered by METI Developing Biopharmaceutical Manufacturing Sites to Strengthen Vaccine Producti

  17. Slide 17: Pharmaceutical: Grow Vaccine Business -2

    Pharmaceutical: Grow Vaccine Business -2 Develop COVID-19 vaccine  Next-generation mRNA Vaccine for COVID-19 (ARCT-154) April 11 Concluded an alliance agreement Collaboration structure for ARCT-154 Dual-use for distribution and sales in Japan facility Meiji development with CSL Seqirus Manufacturin

  18. Slide 18: Pharmaceutical: Foster Growth Drivers

    Pharmaceutical: Foster Growth Drivers Accelerate Research & Development  Prepare to submitting NDA for ME3208  Accelerate development of DMB-3115 (Biosimilar) and ME3183 considering overseas market  Accelerate decision-making and tighten control of the R&D portfolio through the R&D steering commi

  19. Slide 19: Sustainability in Dairy Farming

    Sustainability in Dairy Farming Scope 1+2 Scope 3 Purchased Goods 536 thousand ton 3,227thousand ton and Services Approx. 85% Category 1 2,284 thousand ton The Meiji Group’s CO2 emissions volume in FY2021 (CO2 equivalent) Reducing CO2 emissions volume in dairy farming is our top priority as a leadin

  20. Slide 20: Strengthen Management Base to Support Sustainable Growth

    Strengthen Management Base to Support Sustainable Growth Reform Human Resource Management Set the Meiji Group’s Ideal Identity in 2050 and numerical target after discussion in the Group Human Capital Committee Ratio Ratio of of female female Mid-career Mid-career hires hires Ratio Ratioof of global

  21. Slide 21: 3. Financial Strategy and Returns to Shareholders

    3. Financial Strategy and Returns to Shareholders 20 © Meiji Holdings Co., Ltd. All rights reserved.

  22. Slide 22: Capital Investment and Returns to Shareholders

    Capital Investment and Returns to Shareholders Capital Investment Net cash flow from (JPY bn) 2023 Med- 2023 Med- operating activities Term BP* Term BP* FY2021-2022 FY2023 Plan (projected) (original) 2023 Med-Term BP* (projected) Result JPY 272.5 bn 165.3 62.8 228.2 274.0  Mainly invest in overseas

  23. Slide 23: 4. Progress of Meiji ROESG Management

    4. Progress of Meiji ROESG® Management 22 © Meiji Holdings Co., Ltd. All rights reserved.

  24. Slide 24: 2026 Medium-Term Business Plan (FY2024-2026)

    2026 Medium-Term Business Plan (FY2024-2026) Strive to Create New Markets and Improve Cash Flow The Meiji Group’s sustainable growth model The Group has created new markets. Add further benefits gained as the first-mover advantage to a stable earnings base ■ Create New Markets  Our strength Profit

  25. Slide 25: Progress to Achieve Meiji ROESG Management

    Progress to Achieve Meiji ROESG® Management Create New Markets  Integrate sustainability and business performance – Pursue Trade-On  Effectively invest in the possible growth market Overseas, vaccine, nutrition, wellness science, etc. Keep and improve stable cash flow  Review business portfolio a

  26. Slide 26: Appendices

    Appendices 25 © Meiji Holdings Co., Ltd. All rights reserved.

  27. Slide 27: Consolidated Financial Results for FY2022

    Consolidated Financial Results for FY2022 (JPY bn) FY2022 Results YoY Change Main factors for the change +4.8% Net sales 1,062.1 +49.0 ― Details on pages 2-4 -18.8% Operating profit 75.4 -17.4 ― Details on pages 2-4 - Share of profit of entities accounted for using equity method (-1.5) -14.6% Non-op

  28. Slide 28: Financial Position as of March 2023

    Financial Position as of March 2023 (JPY bn) Results as of Mar. 2023 YoY Change Main Factors for Change +3.4% - Raw materials and supplies (+11.6) - Other (+5.6) Current assets 470.9 +15.3 - Work in process (+1.3) - Cash and deposits (-3.8) - Deferred tax assets (+7.2) - Construction in progress (+5

  29. Slide 29: Consolidated Cash Flows for FY2022

    Consolidated Cash Flows for FY2022 (JPY bn) FY2022 Results YoY Change Main Factors for Change - Profit before income taxes (-33.0) - Gain on sale of property, plant and equipment (-17.3) - Decrease in contract liability (-10.6) Cash flows from operating - Loss on tax purpose reduction entry of non-c

  30. Slide 30: Financial Indicators for FY2022 and FY2023

    Financial Indicators for FY2022 and FY2023 (JPY bn) FY2021 FY2022 FY2023 Full-year Full-year Full-year YoY Change YoY Change Results Results Plan +4.8% +3.8% Net sales 1,013.0 1,062.1 +49.0 1,102.0 +39.8 -18.8% +3.4% Operating profit 92.9 75.4 -17.4 78.0 +2.5 Operating profit ratio 9.2% 7.1% -2.1 pt

  31. Slide 31: Food: Net Sales and Operating Profit by Business

    Food: Net Sales and Operating Profit by Business (JPY bn) FY2021 FY2022 FY2023 Results Results YoY Plan YoY Change Change -3.5% +0.3% Net sales 209.7 202.5 203.1 Yogurt and -7.2 +0.5 Cheese -30.9% +4.6% Op. Profit 34.9 24.1 -10.8 25.2 +1.1 +6.6% +5.1% Net sales 109.6 116.8 +7.2 122.8 +6.0 Nutrition

  32. Slide 32: Food: Net Sales and Operating Profit by Business

    Food: Net Sales and Operating Profit by Business (JPY bn) FY2021 FY2022 FY2023 Results Results YoY Plan YoY Change Change -0.5% +4.4% Net sales 58.2 57.9 60.5 Frozen dessert -0.3 +2.5 & ready meal +10.1% +11.3% Op. Profit 2.9 3.2 +0.2 3.6 +0.3 +30.3% +27.7% Net sales 52.6 68.5 +15.9 87.5 +18.9 Overs

  33. Slide 33: Food: Summary for Main Business

    Food: Summary for Main Business  Yogurt and cheese  Nutrition (JPY bn) (JPY bn) FY2022 FY2023 FY2022 FY2023 Results YoY Plan YoY Results YoY Plan YoY Change Change Change Change -3.5% +0.3% +6.6% +5.1% Net sales 202.5 -7.2 203.1 +0.5 Net sales 116.8 +7.2 122.8 +6.0 -30.9% +4.6% -24.5% +15.9% Op. P

  34. Slide 34: Food: Summary for Main Business

    Food: Summary for Main Business  Chocolate and Gummy  Overseas Business (JPY bn) (JPY bn) FY2022 FY2023 FY2022 FY2023 Results YoY Plan YoY Results YoY Plan YoY Change Change Change Change +4.9% +0.3% +30.3% +27.7% Net sales 102.8 +4.7 103.1 +0.3 Net sales 68.5 +15.9 87.5 +18.9 -11.8% -0.3% ― ― Op.

  35. Slide 35: Food: Analysis of Op. Profit by Business – FY2022

    Food: Analysis of Op. Profit by Business – FY2022 (JPY bn) Food Chocolate Frozen Other/ Yogurt & Drinking Segment Nutrition & B to B dessert & Overseas domestic Cheese milk subsidiaries Total gummy ready meal Full-year Operating Profit – FY2021 Results 75.9 34.9 19.3 12.6 -0.7 2.7 2.9 -1.0 5.0 Due t

  36. Slide 36: Food: Analysis of Op. Profit by Business – FY2023 1st Half Plan

    Food: Analysis of Op. Profit by Business – FY2023 1st Half Plan (JPY bn) Food Chocolate Frozen Other/ Yogurt & Drinking Segment Nutrition & B to B dessert & Overseas domestic Cheese milk subsidiaries Total gummy ready meal Operating Profit – FY2022 1st Half Results 29.3 12.0 8.6 3.2 -0.8 1.0 2.7 0.0

  37. Slide 37: Food: Analysis of Op. Profit by Business – FY2023 Plan

    Food: Analysis of Op. Profit by Business – FY2023 Plan (JPY bn) Food Chocolate Frozen Other/ Yogurt & Drinking Segment Nutrition & B to B dessert & Overseas domestic Cheese milk subsidiaries Total gummy ready meal Full-year Operating Profit – FY2022 Results 55.8 24.1 14.6 11.1 -2.5 3.0 3.2 -0.9 3.0

  38. Slide 38: Food: Sales by Main Products

    Food: Sales by Main Products (JPY bn) FY2021 FY2022 FY2023 Results Results YoY Plan YoY Change Change Yogurt 81.8 76.1 -6.9% 77.4 +1.8% Functional yogurt 98.0 95.4 -2.7% 100.2 +5.1% Cheese 29.1 28.2 -3.1% 28.2 +0.1% Chocolate 96.3 99.1 +3.0% 103.8 +4.7% Infant formula and enteral formula 63.5 67.3 +

  39. Slide 39: Pharmaceutical: Net sales and Op. Profit by Business

    Pharmaceutical: Net sales and Op. Profit by Business (JPY bn) FY2021 FY2022 FY2023 Results Results YoY Plan YoY Change Change +10.4% +11.2% Ethical Net sales 90.7 100.1 +9.4 111.4 +11.2 pharmaceuticals +175.8% +28.1% in Japan Op. Profit 3.6 10.1 +6.4 13.0 +2.8 +27.4% +7.9% Net sales 40.3 51.4 55.5 O

  40. Slide 40: Pharmaceutical: Net sales and Op. Profit by Business

    Pharmaceutical: Net sales and Op. Profit by Business  Ethical pharmaceuticals in Japan  NHI price revision ratio: FY2022 at the 6% (JPY bn) FY2022 FY2023 level, FY2023 approximately 5% Results YoY Plan YoY Change Change  Sales of anti-allergic, Bilanoa favorable +10.4% +11.2%  Sales volume of ge

  41. Slide 41: Pharmaceutical: Analysis of Op. Profit by Business – FY2022

    Pharmaceutical: Analysis of Op. Profit by Business – FY2022 (JPY bn) Pharma Domestic Overseas Segment pharma- pharma- Human vaccine Veterinary drug* Total ceuticals ceuticals Full-year Operating Profit – FY2021 Results 18.6 3.6 4.0 11.4 -0.4 Due to increased/decreased sales +6.7 +9.7 +1.9 -1.6 -3.3

  42. Slide 42: Pharmaceutical: Analysis of Op. Profit by Business – FY2023 1st Half Plan

    Pharmaceutical: Analysis of Op. Profit by Business – FY2023 1st Half Plan (JPY bn) Pharma Domestic Overseas Segment pharma- pharma- Human vaccine Veterinary drug Total ceuticals ceuticals Operating Profit – FY2022 1st Half Results 14.6 5.4 3.6 4.8 0.7 Due to increased/decreased sales -2.6 -2.3 -0.0

  43. Slide 43: Pharmaceutical: Analysis of Op. Profit by Business – FY2023 Plan

    Pharmaceutical: Analysis of Op. Profit by Business – FY2023 Plan (JPY bn) Pharma Domestic Overseas Segment pharma- pharma- Human vaccine Veterinary drug Total ceuticals ceuticals Full-year Operating Profit – FY2022 Results 21.7 10.1 7.7 2.4 1.4 Due to increased/decreased sales +7.1 +5.8 -0.5 +1.8 ―

  44. Slide 44: Pharmaceutical: R&D Pipeline - Infectious

    Pharmaceutical: R&D Pipeline - 1 Code No. Efficacy Classification Target Disease Stage (Generic Name) Infectious disease Infections caused by Phase III (Multinational study OP0595* (Nacubactam) β-lactamase inhibitor carbapenem-resistant bacteria including Japan) Filed (Under review, South Chronic Gr

  45. Slide 45: Pharmaceutical: R&D Pipeline - Products

    Pharmaceutical: R&D Pipeline - 2 Code No. Efficacy Classification Target Disease Stage (Generic Name) Phase III (Adults under 40, Multi-Regional Clinical Trials) Inactivated vaccine against Phase III (Pediatric) KD-414 Vaccine COVID-19 Phase II / III Phase II / III (Pediatric) Phase I / II Vaccine Q

  46. Slide 46: Pharmaceutical: R&D Pipeline - Veterinary Drugs

    Pharmaceutical: R&D Pipeline - 3 Code No. Efficacy Classification Stage (Generic Name) ME4137 Injectable antibacterial drug for cattle Filed (Under review) ME4137 Injectable antibacterial drug for swine Filed (Under review) KD-412* Vaccine for cattle Filed (Under review) Veterinary Drugs MD-22-3002

  47. Slide 47: Meiji ROESG: ESG Evaluation Indicators

    Meiji ROESG®: ESG Evaluation Indicators Indicators ROE × Achieve ESG goals ＋ unique to Meiji ＝ The Meiji ROESG® Target for Average of Achievement Add at the end FY2023: FY2021-2023 coefficient of FY2023 13 points * Achieve 5: x1.2 Achieve 4: x1.0 Achieve <4: x0.8 FY2020 FY2021 FY2022 Evaluation indi

  48. Slide 48: Key Currencies and Our Average Exchange Rates

    Key Currencies and Our Average Exchange Rates USD EUR RMB (JPY) Foreign exchange 160.00 target for FY2023 143.74 143.34 138.24 140.32 (JPY) 140.00 131.78 130.31 130.39 131.30 128.10 141.16 138.68 USD 140 133.26 120.00 129.04 117.10 113.60 EUR 140 100.00 110.00 110.47 106.24 80.00 RMB 20 60.00 40.00

  49. Slide 49: Market Prices of Main Raw Materials Imported

    Market Prices of Main Raw Materials Imported (USD/MT) Nonfat Dry Milk (USD/MT) Cheese 5,000 6,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0 0 (GBP/MT) Cocoa (USD/ｌｂ) Sugar 2,500 30 25 2,000 20 1,500 15 1,000 10 500 5 0 0 48 © Meiji Holdings Co., Ltd. All rights reserved. Source: Bloomb

  50. Slide 50: Information in this material is not intended to solicit sale or purchase of shares

     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

Meiji Holdings — FY2022 Earnings Presentation on 6ix