Meiji Holdings Co., Ltd. · TSE:2269

Meiji — Q3 FY2020 Earnings Presentation

25 slides from Meiji's earnings presentation, Feb 9, 2021

  1. Slide 1: Financial Results for Q1-Q3 FY2020

    Financial Results - For the Q1-Q3 of FYE March 2021 (FY2020) - (From April 1, 2020 to December 31, 2020) February 9, 2021

  2. Slide 2: FY2020 Q1-Q3 Summary

    FY2020 Q1-Q3 Summary (JPY bn) FY2019 FY2020 Meiji HD (consolidated) Q1-Q3 Q1-Q3 Results Results YoY Change -5.3% Net sales 951.1 900.7 -50.4 +3.6% Operating profit 80.3 83.2 +2.8 Op. profit margin 8.4% 9.2% +0.8pt -5.8% Profit attributable to owners of parent 52.4 49.4 -3.0 EPS (JPY) 361.54 340.54 -

  3. Slide 3: Food FY2020 Q1-Q3 Summary

    Food FY2020 Q1-Q3 Summary (JPY bn) FY2019 FY2020 Q1-Q3 Results Q1-Q3 Results YoY Change -4.8% Net sales 796.6 758.4 -38.2 +4.0% Operating profit 65.1 67.7 +2.6 YoY Change in Operating Profit (JPY bn) Q1-Q3 Results – 19年度1-3Q FY2019 65.1 Change in sales Decrease in confectionary 売上増減 volume -3.0 Incr

  4. Slide 4: Pharma FY2020 Q1-Q3 Summary

    Pharma FY2020 Q1-Q3 Summary (JPY bn) FY2019 FY2020 Q1-Q3 Results Q1-Q3 Results YoY Change -7.7% Net sales 155.4 143.4 -12.0 +1.0% Operating profit 15.5 15.7 +0.1 YoY Change in Operating Profit (JPY bn) Q1-Q3 Results19年度1-3Q – FY2019 15.5 Antibacterial drugs decreased significantly because patients s

  5. Slide 5: Consolidated Forecasts for FY2020

    Consolidated Forecasts for FY2020 (JPY bn) FY2019 FY2020 FY2020 Results Initial Plan Revised Plan YoY Change vs. Initial Plan -4.2% -4.2% Net sales 1,252.7 1,253.0 1,200.0 -52.7 -53.0 +3.2% -3.6% Operating profit 102.7 110.0 106.0 +3.2 -4.0 Op. profit margin 8.2% 8.8% 8.8% +0.6pt +0.1pt Profit attri

  6. Slide 6: Consolidated Forecasts for FY2020 by segment

    Consolidated Forecasts for FY2020 (JPY bn) Q4 Initial Revised Q1-Q3 YoY Revised YoY full-year full-year YoY vs. Initial Results Change plan Change plan plan Change plan -5.3% -0.7% -4.2% -4.2% Meiji HD (consolidated) Net sales 900.7 -50.4 299.2 -2.2 1,253.0 1,200.0 -52.7 -53.0 +3.6% +1.8% +3.2% -3.6

  7. Slide 7: FY2020 Plan for Fresh and Fermented Dairy Business

    Food FY2020 Plan for Fresh and Fermented Dairy Business (JPY bn) Revised Q1-Q3 full-year Results YoY Change YoY Change vs. Initial plan plan -0.8% -1.8% +0.1% Net sales 241.6 -1.8 Net sales 321.8 -6.0 +0.3 Operating +26.9% Operating +13.8% +1.2% profit 40.7 +8.6 profit 55.1 +6.6 +0.6  Market Condit

  8. Slide 8: FY2020 Plan for Processed Food Business

    Food FY2020 Plan for Processed Food Business (JPY bn) Revised Q1-Q3 full-year Results YoY Change YoY Change vs. Initial plan plan -0.6% +1.4% +0.0% Net sales 138.2 -0.7 Net sales 180.8 +2.4 +0.0 Operating -17.0% Operating -9.7% -18.4% profit 6.3 -1.2 profit 7.5 -0.8 -1.7  Market Conditions  Net Sa

  9. Slide 9: FY2020 Plan for Confectionery Business

    Food FY2020 Plan for Confectionery Business (JPY bn) Revised Q1-Q3 full-year Results YoY Change YoY Change vs. Initial plan plan -7.7% -4.2% -6.2% Net sales 82.3 -6.8 Net sales 116.2 -5.0 -7.6 Operating -32.4% Operating -17.6% -20.6% profit 9.8 -4.7 profit 15.6 -3.3 -4.0  Market Conditions  Net Sa

  10. Slide 10: FY2020 Plan for Nutrition

    Food FY2020 Plan for Nutrition (JPY bn) Revised Q1-Q3 full-year Results YoY Change YoY Change vs. Initial plan plan +1.9% +3.6% +1.6% Net sales 72.7 +1.3 Net sales 93.9 +3.2 +1.5 Operating -3.6% Operating +1.4% +12.9% profit 13.1 -0.4 profit 15.9 +0.2 +1.8  Market Conditions  Net Sales Sports prot

  11. Slide 11: FY2020 Plan for Overseas Business

    Food FY2020 Plan for Overseas Business (JPY bn) Revised Q1-Q3 full-year Results YoY Change YoY Change vs. Initial plan plan +2.7% +3.8% -7.0% Net sales 36.8 +0.9 Net sales 50.2 +1.8 -3.7 Operating +0.4% Operating -27.7% -32.4% profit 1.2 +0.0 profit 1.2 -0.4 -0.5  Net Sales  Net Sales China:  Ice

  12. Slide 12: FY2020 Plan for Domestic Business and KM Biologics

    Pharma FY2020 Plan for Domestic Business and KM Biologics (JPY bn) Revised Q1-Q3 full-year YoY vs. Initial Results YoY Change plan Change plan -4.3% -5.2% -7.5% 104.8 134.4 Domestic Domestic Net sales Net sales -4.6 -7.4 -10.9 Operating -72.5% Operating -74.2% -62.5% profit 2.6 profit 2.5 -7.1 -7.1

  13. Slide 13: Pharma FY2020 Plan for Overseas Business

    Pharma FY2020 Plan for Overseas Business (JPY bn) Revised Q1-Q3 full-year Results YoY Change YoY Change vs. Initial plan plan -15.5% -12.7% -19.9% Net sales 28.1 -5.1 Net sales 38.0 -5.5 -9.4 Operating +44.0% Operating +79.5% -15.9% profit 3.6 +1.1 profit 4.9 +2.1 -0.9  Net Sales  Net Sales  Sale

  14. Slide 14: Oral antifungal agent Itraconazole Tablet MEEK

    Pharma Oral antifungal agent Itraconazole Tablet 50 MEEK  Course of events  Received report from Kobayashi Kako (manufacturer Dec. 4, 2020 and distributor) concerning Itraconazole Tablet 50 MEEK tainted with sleep-inducing drug (the product)  Specified 344 patients prescribed the product Dec. 9,

  15. Slide 15: Development of the COVID-19 Vaccine

    Pharma Development of the COVID-19 Vaccine  Development of inactivated vaccine*1 in KM Biologics • Selected to participate in AMED*2 to the COVID-19 Vaccine Development (Corporate-led) Public R&D Project in May 2020. Started vaccine development. • Selected to participate in the MHLW Vaccine Product

  16. Slide 16: Appendix

    Appendix 16 ｜ Feb. 9, 2021 ｜ Copyright © Meiji Holdings Co., Ltd. All rights reserved.

  17. Slide 17: Financial Position as of December 2020

    Financial Position as of December 2020 (JPY bn) Results as of Dec. 2020 Change Main Factors for Change +13.7% - Notes and accounts receivable-trade (+33.8) Current assets 473.9 +57.0 - Cash and deposits (+20.6) +7.0% - Investment securities (+37.4) - Construction in progress (+4.6) Non-current asset

  18. Slide 18: Consolidated Cash Flows – Q1-Q3 FY2020

    Consolidated Cash Flows – Q1-Q3 FY2020 (JPY bn) FY2020 Q1-Q3 Results YoY Change Main Factors for Change - Income taxes paid (+13.8) Cash flows from - Depreciation (+1.7) 64.2 +6.0 - Increase in trade receivables (-14.6) operating activities - Increase in inventories (-4.2) - Purchase of investment s

  19. Slide 19: Analysis of Op. Profit by Business – Q1-Q3 FY2020

    Food Analysis of Op. Profit by Business – Q1-Q3 FY2020 (JPY bn) Food Fresh and Other Processed Corporate Segment Fermented Confectionery Nutrition Overseas Domestic Food Expenses Total Dairy Subsidiaries FY2019 Q1-Q3 Operating profit 65.1 32.1 7.5 14.5 13.6 1.2 2.9 -6.9 Due to increased/ decreased s

  20. Slide 20: Analysis of Op. Profit by Business (excluding accounting change)

    Food Analysis of Op. Profit by Business – Q1-Q3 FY2020 [Excluding the impact of change in cost accounting method] (JPY bn) Food Fresh and Other Processed Corporate Segment Fermented Confectionery Nutrition Overseas Domestic Food Expenses Total Dairy Subsidiaries FY2019 Q1-Q3 Operating profit 65.1 32

  21. Slide 21: Food Sales by Mainstay Products – FY2020

    Food Sales by Mainstay Products – FY2020 (JPY bn) Revised Q1-Q3 Initial full- full-year Results YoY Change year plan YoY Change vs. Initial Plan plan Yogurt 64.3 +1.0% 87.9 84.8 +0.5% -3.5% Meiji Bulgaria Yogurt 58.7 +1.9% 79.7 77.2 +1.4% -3.1% Functional yogurt 84.0 +8.6% 117.5 114.7 +3.4% -2.3% Dr

  22. Slide 22: Pharma Sales by Mainstay Products – FY2020

    Pharma Sales by Mainstay Products – FY2020 (JPY bn) Revised Q1-Q3 Initial full- YoY full-year YoY vs. Initial Results year plan Change plan Change Plan Ethical pharmaceuticals (Japan) (Meiji Seika Pharma non-consolidated results) SYCREST 3.1 -2.9% 5.2 4.2 -1.9% -17.7% BILANOA 3.8 +0.8% 10.6 6.9 -4.0

  23. Slide 23: Analysis of Operating Profit – FY2020 [Revised as of Feb. 9]

    Analysis of Operating Profit – FY2020 [Revised as of Feb. 9] Consolidated Food Pharma Other Results - FY2019 102.7 87.3 15.9 -0.6 Due to increased/decreased… -5.4 -2.4 -3.0 ― Decrease due to NHI drug price revision -5.8 ― -5.8 ― Change in COGS +9.4(*1） +7.6 +1.8 ― Changes in SG&A expenses +0.7（*2） -

  24. Slide 24: Market Prices of Main Raw Materials Imported

    Market Prices of Main Raw Materials Imported (USD/MT) Nonfat Dry Milk (USD/MT) Cheese 3,000 7,000 6,000 2,500 5,000 4,000 2,000 3,000 1,500 2,000 (GBP/MT) Cocoa beans (USD/ｌｂ) Sugar 2,500 25 2,000 20 1,500 15 1,000 10 500 5 24 ｜ Feb. 9, 2021 ｜ Copyright © Meiji Holdings Co., Ltd. All rights reserved

  25. Slide 25:  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.  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

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