Meiji Holdings Co., Ltd. · TSE:2269

Meiji — 1H FY2010 Earnings Presentation

53 slides from Meiji's earnings presentation, Nov 19, 2010

  1. Slide 1: Financial Results for 2Q FY2010

    Financial Results for 2Q FY2010 November 19, 2010 Meiji Holdings Co., Ltd.

  2. Slide 2: Contents

    Contents 1. FY2010 Business Plan 2. 1HFY2010: (Meiji Holdings) Outline of Consolidated Financial Results 3. 1HFY2010: (Operating Companies) Outline of Consolidated Financial Results 4. FY2010: Outlook for Consolidated Financial Results 5. Closing | 2010.11.19 | Copyright © 2010 Meiji Holdings Co., L

  3. Slide 3: 1. FY2010 Business Plan

    1. FY2010 Business Plan | 2010.11.19 | Copyright © 2010 Meiji Holdings Co., Ltd. All rights reserved. 3

  4. Slide 4: 1. FY2010 Business Plan

    1. FY2010 Business Plan Expanding businesses and FY2010 Business Plan improving profitability FY2010 FY2009 plan results Business environments are expected to be Net Sales 1,131.0 1,106.6 increasingly difficult Operating Meiji Holdings 29.0 28.7 Income ・Stagnant demand Ordinary 29.0 28.3 Income ・Inc

  5. Slide 5: 2. 1HFY2010: (Meiji Holdings) Outline of Consolidated Financial Results

    2. 1HFY2010: (Meiji Holdings) Outline of Consolidated Financial Results | 2010.11.19 | Copyright © 2010 Meiji Holdings Co., Ltd. All rights reserved. 5

  6. Slide 6: (1) Consolidated Financial Results

    (1) Consolidated Financial Results 1HFY2010 YoY Change Change from initial plan (billions of yen) (billions of yen, %) (billions of yen, %) Net Sales 561.3 ＋6.0 ＋1.1 (3.1) (0.6) Gross Profit 191.2 ＋8.1 ＋4.5 － － SG&A 173.7 ＋4.2 ＋2.5 － － Operating Income 17.5 ＋3.9 ＋29.3 ＋5.5 ＋46.2 Non-operating Income

  7. Slide 7: (2) Segment Information

    (2) Segment Information 1) Financial Results by Segment Net Sales Operating Income 1HFY2010 YoY Change 1HFY2010 YoY Change (billions of Change (%) from initial (billions of Change (%) from initial yen) plan (%) yen) plan (%) Dairy Products 319.1 +0.9 +0.0 10.0 (0.5) +1.6 Confectionary and Healthcare

  8. Slide 8: (2) Segment Information: Results for Dairy Products

    (2) Segment Information 2) Results for Dairy Products Net Sales Operating Income 1HFY2010 YoY Change Change 1HFY2010 YoY Change Change (Amount) from initial (Amount) from initial plan plan 319.1 +0.9% 10.0 -0.5% +0.0% +1.6% billion yen (+2.9 billion yen) billion yen (-0.0 billion yen) Points of 1HF

  9. Slide 9: (2) Segment Information: Confectionary and Healthcare

    (2) Segment Information 3) Results for Confectionary and Healthcare Net Sales Operating Income 1HFY2010 YoY Change Change 1HFY2010 YoY Change Change (Amount) from initial (Amount) from initial plan plan 135.0 -1.4% 0.1 ＋35.8% -3.5% -75.3% billion yen (-1.8 billion yen) billion yen (+0.0 billion yen)

  10. Slide 10: (2) Segment Information: Pharmaceuticals

    (2) Segment Information 4) Results for Pharmaceuticals Net Sales Operating Income 1HFY2010 YoY Change Change 1HFY2010 YoY Change Change (Amount) from initial (Amount) from initial plan plan 61.1 +5.3% 5.2 +138.4% +2.6% +768.8% billion yen (+3.0 billion yen) billion yen (+3.0 billion yen) Points of 1

  11. Slide 11: (3) Consolidated Financial Review: Balance Sheets

    (3) Consolidated Financial Review 1) Consolidated Balance Sheets (billions of yen) Consolidated Consolidated 1HFY2010 Compared to YoY 1HFY2010 Compared to YoY beginning of Change beginning of Change period period Current Assets 311.5 +1.9 +4.6 Current Liabilities 301.7 +0.9 (11.9) Cash and Deposits

  12. Slide 12: (3) Statements of Changes in Net Assets

    (3) Consolidated Financial Review 2) Statements of Changes in Net Assets (billions of yen) (April 1, 2010 ― September 30, 2010) Total Net Assets Balance at March 31, 2010 297.7 Changes during the fiscal period Cash dividends (5.8) Net income 9.3 Acquisition of treasury stock (0.0) Disposal of treasu

  13. Slide 13: (3) Financial Indices and Cash Flows

    (3) Consolidated Financial Review 3) Consolidated Financial Indices and Cash Flows (billions of yen) 1HFY2010 FY2009 1HFY2009 Sept. 30 March 31 Sept. 30 Earnings per Share (EPS) 127.26 yen 177.73 yen 73.42 yen Return on Equity (ROE) 3.2% 4.6% 1.9% Cash Flows from Operating 29.8 47.7 24.3 Activities

  14. Slide 14: (3) Projected Dividends

    (3) Consolidated Financial Review 4) Projected Dividends Dividends per Share Payout ratio (Record date) (Consolidated) Interim Year-end Annual Year ending March 2011 40.00 yen 40.00 yen 80.00 yen 39.3% (Note) For the year ending March 2011, we plan dividend with the interim-end closing date as the r

  15. Slide 15: (3) Capital Expenditures, Depreciation, R&D Expenses

    (3) Consolidated Financial Review 5) Capital Expenditures, Depreciation, R&D Expenses (billions of yen) 1HFY2010 Note Results (Meiji Seika) (Meiji Dairies) Capital Cash basis (FY2009, Approval basis: Expenditures 17.5 8.0 9.5 63.8 billion yen) Property, plant and equipment Depreciation 18.8 9.2 9.6

  16. Slide 16: 3. 1HFY2010: (Operating Companies) Outline of Consolidated Financial Results

    3. 1HFY2010: (Operating Companies) Outline of Consolidated Financial Results (1) Meiji Seika (2) Meiji Dairies | 2010.11.19 | Copyright © 2010 Meiji Holdings Co., Ltd. All rights reserved. 16

  17. Slide 17: (1) Meiji Seika: Income Summary

    (1) (Meiji Seika) Outline of Financial Results 1) Income Summary 1HFY2010 YoY Change YoY Change (%) (billions of yen) (billions of yen) Net Sales 193.9 ＋3.5 ＋1.9 Gross Profit 80.0 ＋1.6 ＋2.1 SG&A 75.2 (1.7) (2.2) Operating Income 4.8 ＋3.4 ＋242.0 Ordinary Income 6.8 ＋5.4 ＋374.4 Net Income 3.0 ＋3.5 ― |

  18. Slide 18: (1) Meiji Seika: Net Sales by Division

    (1) (Meiji Seika) Outline of Financial Results 2) Net Sales by Division 1HFY2010 Change from (billions of 1HFY2009 (%) yen) Food & Healthcare 134.8 (1.4) Confectionary 61.3 (4.3) Healthcare 23.2 (5.1) Institutional Food Products 40.1 ＋7.3 Overseas (Import and Export) 10.1 (5.7) Pharmaceuticals 57.5

  19. Slide 19: (1) Meiji Seika: Segment Information

    (1) (Meiji Seika) Outline of Financial Results 3) Segment Information (billions of yen) Food & Healthcare Pharmaceuticals YoY YoY 1HFY2010 1HFY2009 1HFY2010 1HFY2009 change change Net Sales 134.8 136.6 (1.8) 57.5 52.0 ＋5.4 Operating 0.1 0.1 ＋0.0 4.8 1.5 ＋3.2 Income Others Total YoY YoY 1HFY2010 1HFY

  20. Slide 20: (1) Meiji Seika: Factors in Operating Income Change

    (1) (Meiji Seika) Outline of Financial Results 4) Factors in Increase/Decrease of Operating Income (billions of yen) ・Cost ratio improvement +1.5 1HFY2009 1.4 ・Decrease in administrative expenses +0.7 Increase in marginal income +2.4 Decrease in sales promotion expenses +1.6 Confectionary's profitab

  21. Slide 21: (2) Meiji Dairies: Income Summary

    (2) (Meiji Dairies) Outline of Financial Results 1) Income Summary 1HFY2010 YoY Change YoY Change (billions of yen) (billions of yen) (%) Net Sales 373.5 ＋4.3 ＋1.2 Gross Profit 111.1 ＋6.4 ＋6.2 SG&A 98.6 ＋6.0 ＋6.6 Operating Income 12.4 ＋0.3 ＋3.3 Ordinary Income 12.5 ＋0.4 ＋3.8 Net Income 6.5 ＋0.5 ＋9.4

  22. Slide 22: (2) Meiji Dairies: Net Sales by Division

    (2) (Meiji Dairies) Outline of Financial Results 2) Net Sales by Division 1HFY2010 Change from Change in volume (billions of yen) 1HFY2009 (%) from 1HFY2009 (%) Meiji Dairies Total (non- 261.9 ＋1.5 ― consolidated basis ) (1) Fresh dairy 150.8 ＋0.3 ― (Drinking milk) (Note1) 58.4 (1.8) (0.9) (Yogurt)

  23. Slide 23: (2) Meiji Dairies: Segment Information

    (2) (Meiji Dairies) Outline of Financial Results 3) Segment Information (billions of yen) Food Others Total YoY YoY YoY 1HFY2010 1HFY2009 1HFY2010 1HFY2009 1HFY2010 1HFY2009 Change Change Change Net Sales 319.1 316.1 ＋2.9 76.2 75.1 ＋1.1 395.3 391.2 ＋4.1 Operating Income 10.0 10.1 (0.0) 2.3 1.9 ＋0.4

  24. Slide 24: (2) Meiji Dairies: Factors in Operating Income Change

    (2) (Meiji Dairies) Outline of Financial Results 4) Factors in Increase/Decrease of Operating Income (billions of yen) ・ Dairy ingredients (Domestic) + 0.9 1HFY2009 12.1 ・ Dairy ingredients (Overseas) +1.5 Decrease in procurement costs +2.5 of raw materials Portion of consolidated +0.7 subsidiaries

  25. Slide 25: 4. FY2010: Outlook for Consolidated Financial Results

    4. FY2010: Outlook for Consolidated Financial Results | 2010.11.19 | Copyright © 2010 Meiji Holdings Co., Ltd. All rights reserved. 25

  26. Slide 26: Outlook for Consolidated Financial Results (Meiji Holdings)

    (1) (Meiji Holdings) Outlook for Consolidated Financial Results (billions of yen) Operating Ordinary Net Sales Net Income Income Income Results 561.3 17.5 19.1 9.3 1H Results Compared to initial plan (3.1) ＋5.5 ＋7.1 ＋3.6 YoY change ＋6.0 ＋3.9 ＋5.7 ＋3.9 Revised plan 558.6 11.9 10.8 5.6 2H Plan Compare

  27. Slide 27: Outlook for Consolidated Financial Results (Operating Companies)

    (2) (Operating Companies) Outlook for Consolidated Financial Results (billions of yen) Net Sales Operating Ordinary Net Income Income Income Results Results 193.9 4.8 6.8 3.0 1H Compared to (4.0) ＋4.3 ＋6.3 ＋3.5 initial plan Meiji Seika Revised plan 233.0 6.6 5.6 2.9 Plan 2H Compared to ＋1.0 (4.3) (5

  28. Slide 28: (3) Meiji Seika: Revised Plan for 2HFY2010

    (3) (Meiji Seika) Factors in Increase/Decrease of Operating Income 1) Revised Plan for 2HFY2010 (billions of yen) 2HFY2009 9.4 Increase in marginal income +4.4 Confectionary's profitability ＋0.5 improvement NHI price revision (3.1) Raw material prices (1.4) Sales promotion expenses (0.2) (0.2) Depre

  29. Slide 29: (3) Meiji Seika: Revised Full-Year Plan

    (3) (Meiji Seika) Factors in Increase/Decrease of Operating Income 2) Revised Full-Year Plan (billions of yen) FY2009 10.8 Increase in marginal income ＋6.8 Decrease in sales promotion expenses ＋1.4 Confectionary's profitability improvement ＋1.4 Others ＋0.4 NHI price revision (6.0) Raw material price

  30. Slide 30: (4) Meiji Dairies: Revised Plan for 2HFY2010

    (4) (Meiji Dairies) Factors in Increase/Decrease of Operating Income 1) Revised Plan for 2HFY2010 (billions of yen) 2HFY2009 5.5 Advertising expenses, etc. ＋1.7 Decrease in procurement costs of ＋1.0 raw materials Selling expenses (1.2) Portion of consolidated (0.5) subsidiaries Increase in depreciat

  31. Slide 31: (4) Meiji Dairies: Revised Full-Year Plan

    (4) (Meiji Dairies) Factors in Increase/Decrease of Operating Income 2) Revised Full-Year Plan (billions of yen) FY2009 17.5 Decrease in procurement costs ＋3.5 of raw materials Advertising expenses, etc. ＋1.4 Portion of consolidated ＋0.3 subsidiaries Selling expenses (3.2) Increase in depreciation (

  32. Slide 32: (5) Outlook by Segment

    (5) Outlook by Segment 1) Net Sales and Operating Income by Segment (Net Sales) (billions of yen) Total Dairy Confectionary Pharma- Other Adjustments Products and Healthcare ceuticals 2HFY2010 Revised plan 558.6 278.8 164.9 69.1 72.0 (26.2) Change from (7.8) (10.5) ＋2.9 (2.4) +1.4 ＋0.8 initial plan

  33. Slide 33: (5) Outlook by Segment: Dairy Products

    (5) Outlook by Segment 2) Dairy Products (billions of yen) Change from YoY Change Operating Change from YoY Change Net Sales initial plan (Amount, %) initial plan (Amount) Income (Amount, %) (Amount) 2H Revised (10.5) (5.0) plan 278.8 4.3 (0.4) +1.0 (3.6%) (1.8%) Full-year (10.5) (2.0) Revised plan

  34. Slide 34: Dairy Products: Sales Targets for Leading Products

    (5) Outlook by Segment 2) Dairy Products Sales Targets for Our Leading Products (billions of yen) 2HFY2010 Outlook Full-Year Outlook FY2010 Initial plan YoY YoY YoY Change Change Change (%) (%) (%) Meiji Oishii Gyunyu 23.6 +0.4 50.4 +1.6 49.6 +0.1 Meiji Bulgaria Yogurt 30.8 +0.4 66.0 (0.7) 67.2 +1.1

  35. Slide 35: Dairy Products: Enhancing sales of Meiji Oishii Gyunyu

    (5) Outlook by Segment 2) Dairy Products Enhancing sales of “Meiji Oishii Gyunyu” ・ Appealing to customers through consumer campaigns and communication at retail stores Enhancing sales of yogurt “Meiji Oishii Gyunyu” series ▪ Emphasizing the functionality of “Meiji Bulgaria Yogurt,” “Meiji Probio Yo

  36. Slide 36: Dairy Products: Cheese, ice cream, enteral formula

    (5) Outlook by Segment 2) Dairy Products Expanding sales of “Meiji Hokkaido Tokachi Cheese” ・ Continuing to implement advertising and consume “Meiji Hokkaido Tokachi Smart Cheese” campaigns, especially for “Meiji Hokkaido Tokachi Smart Cheese” Enhancing the product lineup of ice cream “Meiji ALMOND

  37. Slide 37: (5) Outlook by Segment: Confectionary and Healthcare

    (5) Outlook by Segment 3) Confectionary and Healthcare (billions of yen) Change from YoY Change Operating Change from YoY Change Net Sales initial plan (Amount, %) initial plan (Amount) (Amount, %) Income (Amount) 2H Revised +2.9 +8.7 plan 164.9 5.3 +0.4 +1.0 +1.8% +5.6% Full-year (2.0) +6.9 Revised

  38. Slide 38: Confectionary: expanding sales during high season

    (5) Outlook by Segment 3) Confectionary and Healthcare Confectionary: expanding sales during high season Chocolate ・ Enhancing product lineup of chocolate bars Extending the “Meltykiss” brand in other brands (Demand for hand-made chocolate: Christmas/Valentine's Day/White Day) ・ Developing “Meltykis

  39. Slide 39: Healthcare: concentrating in mainstay brands

    (5) Outlook by Segment 3) Confectionary and Healthcare Healthcare: concentrating in mainstay brands “Savas” （Protein for athletes） “Savas Runner Protein” ・ Enhancing sales along with the expansion of the market for joggers ・ Increasing the hosting of seminars as part of promotional activities “Amino

  40. Slide 40: (5) Outlook by Segment: Pharmaceuticals

    (5) Outlook by Segment 4) Pharmaceuticals (billions of yen) Change from YoY Change Operating Change from YoY Change Net Sales initial plan (Amount, %) initial plan (Amount) Income (Amount) (Amount, %) 2H Revised (2.4) (0.4) plan 69.1 1.8 (4.6) (4.4) (3.4%) (0.6%) Full-year (0.9) +2.6 Revised plan 13

  41. Slide 41: Establishing new drugs and expanding generic drug sales

    (5) Outlook by Segment 4) Pharmaceuticals Establishing new drugs in the market and expanding sales of generic drugs Enhancing product lineup in strategic therapeutic areas “REFLEX®” ・ Encouraging the use of pharmaceuticals by emphasizing Antidepressant drug “REFLEX®” their distinctive features Conti

  42. Slide 42: Agricultural chemicals, veterinary drugs

    (5) Outlook by Segment 4) Pharmaceuticals Agricultural chemicals, veterinary drugs “ME5343” (Horticultural insecticide) ・Licensed out to BASF SE Promoting the registration and approval of new products (based in Germany) in May 2010 ・ “ZAXA” liquid-formula ・Preparing to make application in Japan ・ “M

  43. Slide 43: 5. Closing - Toward a New Corporate Reorganization

    5. Closing －Toward a New Corporate Reorganization－ (1) Global Strategy (2) Fusion of Technologies | 2010.11.19 | Copyright © 2010 Meiji Holdings Co., Ltd. All rights reserved. 43

  44. Slide 44: Meiji Group 2020 Vision: International Food Business

    (1) Global Strategy 1) Meiji Group “2020 Vision” – Actively Expanding Our International Food Business The Meiji Group aims to become a corporate group that brightens customers' daily lives not only in Japan but also in overseas markets through a broad business portfolio. (Strategies) ● Develop the b

  45. Slide 45: Meiji Group 2020 Vision: International Pharmaceuticals Business

    (1) Global Strategy 2) Meiji Group “2020 Vision” – Actively Expanding the International Pharmaceuticals Business Brightening the daily lives of the people worldwide by strengthening business operations in growing markets in Asia and other emerging economies. Meiji Seika Pharma’s (Strategies) oversea

  46. Slide 46: Overseas Bases: Dairy Products

    (1) Global Strategy 3) Overseas Bases: Dairy Products Guangdong M&F-Yantang Dairy Products : Ice cream Guangdong M&F-Yantang Dairy Products Co., Ltd. CP-Meiji products in supermarket CP-Meiji Co., Ltd. (Thailand) CP-Meiji’s products line-up CP-Meiji products in supermarket | 2010.11.19 | Copyright ©

  47. Slide 47: Overseas Bases: Confectionary and Healthcare

    (1) Global Strategy 4) Overseas Bases: Confectionary and Healthcare Meiji Seika Food Industry (Shanghai) Co., Ltd. Meiji Seika (Shanghai)’ s products line-up Meiji Seika (Shanghai) Co., Ltd. D.F. Stauffer Biscuit Co., Inc. (U.S.) Meiji Seika (Singapore) Pte. Ltd. Convenience store in Shanghai distri

  48. Slide 48: Overseas Bases: Pharmaceuticals

    (1) Global Strategy 5) Overseas Bases: Pharmaceuticals Meiji Lukang Pharmaceutical Co., Ltd. Shantou Meiji Pharmaceuticals Co., Ltd. “MEIACT” (Sold overseas) Tedec-Meiji Farma, S.A. (Spain) P.T. Meiji Indonesian Pharmaceutical Industries Thai Meiji Pharmaceuticals Co., Ltd. | 2010.11.19 | Copyright

  49. Slide 49: Fusion of Technologies: Distribution and Corporate Image

    (2) Fusion of Technologies 1) Expansion of market coverage by management integration—Enhancement of distribution and corporate image— Distribution of Meiji Dairies Distribution of Meiji Seika Distribution of the Meiji Group Room Room Frozen Chilled temperature temperature Frozen Chilled Room tempera

  50. Slide 50: Fusion of Technologies: Eating Occasions and Demographics

    (2) Fusion of Technologies 2) Expansion of market coverage by management integration—Expansion of eating occasions and demographic range of customers— Targeted Eating Occasion Meiji Dairies Meiji Seika Breakfast ◎ △ ◎ Lunch ○ △ ○ At work, in between meals △ ◎ ◎ During overtime △ ◎ ◎ Dinner ○ △ ○ Lat

  51. Slide 51: Fusion of Technologies: Summary

    (2) Fusion of Technologies 3) Expansion of market coverage by management integration—Summary— Factors to expand market coverage by management integration 1. Expansion of distribution 2. Expansion of our image in the consumer’s mind 3. Expansion of eating occasions 4. Expansion of consumer demographi

  52. Slide 52: Forward-looking statements notice

    ▪ The forward-looking statements described in this material, such as business forecasts, are based on information available at the time of the release of this presentation and reasonable assumptions made by the Company. Actual results could differ materially from forecasts due to various factors. ▪

  53. Slide 53: Copyright © 2010 Meiji Holdings Co., Ltd. All rights reserved.

    | 2010.11.19 | Copyright © 2010 Meiji Holdings Co., Ltd. All rights reserved.

Meiji Holdings — 1H FY2010 Earnings Presentation on 6ix