Meiji Holdings Co., Ltd. · TSE:2269

Meiji — Q1 FY2020 Earnings Presentation

20 slides from Meiji's earnings presentation, Aug 12, 2020

  1. Slide 1: Financial Results Q1 FY2020

    Financial Results - For the Q1 of FYE March 2021 (FY2020) - (From April 1, 2020 to June 30, 2020) August 12, 2020

  2. Slide 2: Summary – Q1 FY2020

    Summary – Q1 FY2020 (JPY bn) FY2019 FY2020 FY2020 Q1 Results Q1 Results YoY Change vs. Full-year Full-year Plan Plan -5.9% Net sales 298.9 281.1 -17.7 22.4% 1,253.0 +12.2% Operating profit 20.6 23.1 +2.5 21.1% 110.0 Op. profit margin 6.9% 8.2% +1.3pt ― 8.8% Profit attributable to owners -7.8% 14.5 1

  3. Slide 3: Impact of Novel Coronavirus Disease (COVID-19)

    Impact of Novel Coronavirus Disease (COVID-19)  Yogurt and Functional yogurt R-1 Favorable due to increasing health consciousness Positive factors  Dairy products for consumers (Meiji Oishii Gyunyu, cheese, butter, etc.) Increased due to demand from stay-at-home  Sports protein SAVAS Increased si

  4. Slide 4: Status of Net Sales (Domestic Products)

    Food Status of Net Sales (Domestic Products) Sales YoY Change Notes Apr. May Jun. • Yogurt and Functional yogurt: Favorable • Drinking milk: Decreased YoY overall Fresh and Meiji Oishii Gyunu favorable but discontinued sales of Fermented +5.8% +0.2% +1.6% unprofitable products such as Meiji Milk Dai

  5. Slide 5: Status of Net Sales (Domestic Pharmaceuticals)

    Pharma Status of Net Sales (Domestic Pharmaceuticals*) Sales YoY Change Notes Apr. May Jun. • Decreased significantly NHI price revisions Brand name drugs Patients stayed at home to avoid the risk of (excluding human -26.1% -37.9% -40.9% COVID-19 in hospitals vaccines) • REFLEX decreased significant

  6. Slide 6: Status of Net Sales (Overseas)

    Food Pharma Status of Net Sales (Overseas) Q1 net sales* YoY change Notes (local currencies) • Milk and Yogurt: Drinking milk for consumers was favorable, but Milk, yogurt: for professional use decreased significantly – Forecasting gradual -13.6% recovery from April Mainland Confectionery: • Confect

  7. Slide 7: Revised: Components for Operating Profit Change Analysis

    Revised: Components for Operating Profit Change Analysis Before the revision After the revision Disclosure item Structural components Disclosure item Structural components Change in  Volume differences  Volume differences sales volume*  Unit price differences Due to  Unit price differences  Pro

  8. Slide 8: Food Summary – Q1 FY2020

    Food Summary – Q1 FY2020 (JPY bn) FY2019 FY2020 FY2020 Q1 Results Q1 Results YoY Change vs. Full-year Plan Full-year Plan -5.7% Net sales 259.0 244.4 -14.6 23.5% 1,041.4 +19.6% Operating profit 19.6 23.5 +3.8 25.3% 93.0 YoY Change in Operating Profit (JPY bn) Q1 Results -- FY2019 19.6 Change in sale

  9. Slide 9: Food Analysis of Operating Profit

    Food Analysis of Operating Profit – Q1 FY2020 (JPY bn) Food Fresh and Other Processed Corporate Segment Fermented Confectionery Nutrition Overseas Domestic foods Expenses Total Dairy Subsidiaries Q1 Operating Profit – FY2019 19.6 10.4 1.8 4.0 4.1 0.2 0.8 -2.0 Due to increased/decreased -0.0 +2.1 -0.

  10. Slide 10: Pharma Summary – Q1 FY2020

    Pharma Summary – Q1 FY2020 (JPY bn) FY2019 FY2020 FY2020 Q1 Results Q1 Results YoY Change vs. Full-year Plan Full-year Plan -7.3% Net sales 40.0 37.1 -2.9 17.5% 212.3 ― Operating profit 0.9 -0.3 -1.3 ― 18.0 YoY Change in Operating Profit (JPY bn) Q1 Results – FY2019 0.9 Decreased because patients st

  11. Slide 11: Management Principle to FY2020

    Management Principle to FY2020  Business Climate  COVID-19 pandemic may cause serious damage for long time  A challenging economic environment persist throughout FY2020 all over the world – Should live With-Coronavirus  Management Principle  Effective marketing/sales activities  Create/stimula

  12. Slide 12: Appendix

    Appendix 12 ｜ August 12, 2020 ｜ Copyright © Meiji Holdings Co., Ltd. All rights reserved.

  13. Slide 13: Financial Position as of June 2020

    Financial Position as of June 2020 (JPY bn) Results as of Jun. 2020 Change Main Factors for Change - Cash and deposits (+38.6) - Merchandise and finished goods (+5.3) +8.3% Current assets 451.6 +34.8 - Raw materials and supplies (+3.1) - Notes and accounts receivable-trade (-14.9) +0.7% Non-current

  14. Slide 14: Consolidated Cash Flows – Q1 FY2020

    Consolidated Cash Flows – Q1 FY2020 (JPY bn) FY2020 Q1 Results YoY Change Main Factors for Change - Income taxes paid (+8.3) Cash flows from - Decrease in trade receivables (+5.8) 11.9 +8.5 operating activities - Increase in inventories (-4.6) - Decrease in trade payables (-1.7) - Purchase of proper

  15. Slide 15: Food Sales by Mainstay Products

    Food Sales by Mainstay Products – Q1 FY2020 (JPY bn) FY2019 FY2020 FY2020 Q1 Results Q1 Results vs. Full-year Full-year Plan YoY Change Plan Yogurt 21.7 22.5 +3.7% 25.6% 87.9 Meiji Bulgaria Yogurt 19.8 20.6 +4.4% 26.0% 79.7 Functional yogurt 25.8 30.3 +17.6% 25.9% 117.5 Drinking milk 28.1 27.0 -4.1%

  16. Slide 16: Pharma Sales by Mainstay Products

    Pharma Sales by Mainstay Products – Q1 FY2020 (JPY bn) FY2019 FY2020 FY2020 Q1 Results Q1 Results vs. Full-year Full-year Plan YoY Change Plan Ethical pharmaceuticals (Japan) (Meiji Seika Pharma non-consolidated results) SYCREST 1.0 0.8 -13.3% 17.2% 5.2 BILANOA 0.9 0.8 -12.4% 8.2% 10.6 REFLEX (inclu

  17. Slide 17: Outlook for FY2020 (No revisions)

    Outlook for FY2020 (No revisions) (JPY bn) FY2019 Results FY2020 Plan YoY Change +0.0% Net sales 1,252.7 1,253.0 +0.2 +7.1% Operating profit 102.7 110.0 +7.2 Op. profit margin 8.2% 8.8% +0.6pt +3.2% Profit attributable to owners of parent 67.3 69.5 +2.1 EPS (JPY) 464.08 479.08 +15.00 Cash dividends

  18. Slide 18: Analysis of Consolidated Operating Profit for FY2020

    Analysis of Consolidated Operating Profit for FY2020 (Revised Structural Components in Aug. 12, 2020) (JPY bn) Consolidated Results and Plan Food Pharma Other FY2019 Results 102.7 87.3 15.9 -0.6 Due to increased/decreased sales +7.3 +5.6 +1.7 ― Decrease due to drug price revision -5.9 ― -5.9 ― Chang

  19. Slide 19: 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 (Cent/Bushel) Sugar 2,500 25 2,000 20 1,500 15 1,000 10 500 5 19 ｜ August 12, 2020 ｜ Copyright © Meiji Holdings Co., Ltd. All rights

  20. Slide 20:  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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