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F ir st Half of the F isc al Ye ar E nding F e br uar y 2017 (1H F Y2/ 17) Re sults Br ie fing WARABE YA NI CHI YO HOL DI NGS CO., L T D. (2918) Oc to b e r 7, 2016 Ove r vie w of F inanc ial Re sults for 1H F Y2/ 17 and

slide-1
SLIDE 1

WARABE YA NI CHI YO HOL DI NGS CO., L T D.

(2918) Oc to b e r 7, 2016

F ir st Half of the F isc al Ye ar E nding F e br uar y 2017 (1H F Y2/ 17) Re sults Br ie fing

slide-2
SLIDE 2

Ove r vie w of F inanc ial Re sults for 1H F Y2/ 17 and F ull- ye ar F

  • r

e c ast for F Y2/ 17 (Consolidate d Basis)

1

slide-3
SLIDE 3

Consolidate d financ ial r e sults for 1H F Y2/ 17

1H F Y2/ 16 1H F Y2/ 17 Yo Y

Vs

F

  • re c a st

a t b e g inning o f F Y

Re sults F

  • re c a st

a t b e g inning o f F Y

Re sults Ne t sale s

108,430

(100.0)

111,200

(100.0) 109,658

(100.0)

1,227

<1.1>

  • 1,541

<-1.4>

Ope r ating inc ome

2,386

(2.2)

2,800

(2.5) 3,027

(2.8)

640

<26.8>

227

<8.1>

Or dinar y inc ome

2,677

(2.5)

2,900

(2.6) 3,287

(3.0)

610

<22.8>

387

<13.4>

Pr

  • fit attr

ibutable to owne r s of par e nt

1,890

(1.7)

1,750

(1.6) 1,644

(1.5)

  • 246

<-13.0>

  • 105

<-6.0>

E PS (Ye n)

(attr ibutable to

  • wne r

s of par e nt)

107.47 99.78

93.78

  • 13.69
  • 6.00

2

(Millio ns o f ye n)

*F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%). E stima te s fo r 1H F Y2/ 17 a nno unc e d o n April 13, 2016.

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SLIDE 4

F

  • r

e c ast and diffe r e nc e fac tor s

1H F Y2/ 17

Vs. F

  • re c a st

F

  • re c a st

a t b e g inning o f F Y

Re sults

Ne t sale s

111,200 (100.0)

109,658 (100.0)

  • 1,541

<-1.4>

[Diffe re nc e fa c to rs]

F

  • o d Pro duc ts Busine ss
  • 1,650

Ric e Ba ll

  • 1,700

Sushi

  • 200

De lic a te sse n ite ms

  • 300

Chille d Ja pa ne se swe e ts +600 F

  • o d I

ng re die nts, L

  • g istic s,

Othe r Busine sse s

+110 [Diffe re nc e fa c to rs]

F

  • o d Pro duc ts Busine ss +170

Of which, Sa le s sho rtfa ll a t e xisting pla nts

  • 140

Of which, De c line in utilitie s c o sts

+240

Of which, Ne w Pla nts

+110 F

  • o d I

ng re die nts, L

  • g istic s,

Othe r Busine sse s

+60

1H F Y2/ 17

Vs. F

  • re c a st

F

  • re c a st

a t b e g inning o f F Y

Re sults

Ope r ating inc ome

2,800

(2.5)

3,027

(2.8)

227

<8.1> (Millio ns o f ye n)

3

(Millio ns o f ye n)

*F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%). E stima te s fo r 1H F Y2/ 17 a nno unc e d o n April 13, 2016.

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SLIDE 5

Consolidate d ne t sale s by se gme nt (YoY)

1H F Y2/ 16

1H F Y2/ 17

Cha ng e Cha ng e fa c to rs

T

  • tal ne t

sale s

108,430 109,658

1,227 <1.1>

F

  • o d

Pro d uc ts

83,917 85,820

1,902 <2.3>

Inc re a se d d e live ry po int sto re s a nd inc re a se d sa le s g ro wth fo r c hille d b o xe d me a ls, b re a d pro d uc ts a nd c hille d Ja pa ne se swe e ts F

  • o d

Ing re d ie nts

13,042 13,318

276 <2.1>

Hig he r sa le s o f fish ro e , sa lmo n a nd tro ut L

  • g istic s

7,029 7,490

461 <6.6>

Gro wth in tra nsa c tio n vo lume in jo int d istrib utio n b usine ss supplying Se ve n- E le ve n Othe r

4,442 3,029

  • 1,412

<-31.8>

Pullb a c k in sa le s in F

  • o d

Ma nufa c turing E q uipme nt Busine ss a fte r la rg e o rd e rs in the sa me pe rio d o f the pre vio us fisc a l ye a r

(Millio ns o f ye n)

83,917 85,820 13,042 13,318 7,029 7,490 4,442 3,029

108,430 109,658

30,000 60,000 90,000

1H F Y2/ 16 1H F Y2/ 17

(Millions

  • f ye n)

F

  • od Produc ts

Business F

  • od Ingr

e dients Busine ss L

  • gistic s

Busine ss Othe r Busine ss

4

* F ig ure s in < > sho w c ha ng e (%).

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SLIDE 6

Consolidate d ope r ating inc ome by se gme nt (YoY)

1H F Y2/ 16

1H F Y2/ 17

Cha ng e

T

  • tal ope r

ating inc ome

2,386

3,027

640 <26.8>

F

  • o d Pro d uc ts

1,609

2,414

804 <50.0> F

  • o d Ing re d ie nts

274

232

  • 41

<-15.1> L

  • g istic s

87

143

56 <63.8> Othe r 550

263

  • 287

<-52.1> Inte r-se g me nt tra nsa c tio ns

  • 135
  • 27

108 <->

1,609 2,414 274 232 87 143 550 263

  • 27

2,386 3,027 (50) 2,000

1H F Y2/ 16 1H F Y2/ 17

(Millions

  • f ye n)

F

  • od Produc ts

Busine ss F

  • od Ingre die nts

Busine ss L

  • g istic s

Busine ss Othe r Busine ss Inte r-se g me nt tr a nsa c tions

  • 135

F

  • o d Ing re die nts, L
  • g istic s a nd Othe r

Busine sse s / Inte r-se g me nt tra nsa c tio ns -160

Ope r a ting inc ome fr

  • m

thr e e ne w pla nts up 940 million YoY

I nc re a se in de pre c ia tio n a nd a mo rtiza tio n -60 De c line in utilitie s c o sts +340

Ope ra ting inc o me fro m e xisting pla nts do wn 140 millio n Yo Y

Othe r -70 I nc re a se in pe rso nne l e xpe nse s -350

Impro ve me nt in pro fita bility a t K a g a wa Pla nt +230

I mpro ve me nt in pro fita b ility (na rro we r lo sse s) a t Ura wa Pla nt +230 Na rro we r sta rt-up lo sse s a t I wa te Pla nt +480

Ne gative impac t on profits

  • 640

Positive impac t on profits +1,280

T

  • tal YoY: appr
  • x. - 640

5

(Millio ns o f ye n)

* F ig ure s in < > sho w c ha ng e (%).

F

  • o d

Pro duc ts Busine ss (Millio ns o f ye n)

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SLIDE 7

Non- ope r ating inc ome / e xpe nse s and e xtr aor dinar y inc ome / losse s in 1H F Y2/ 17

1H F Y2/ 16

1H F Y2/ 17

Cha ng e

Ope r ating inc ome

2,386 (2.2)

3,027 (2.8)

640 <26.8>

Non- ope r ating inc ome

443 (0.4) 483 (0.4) 40 <9.0>

Non- ope r ating e xpe nse s

153 (0.1)

223 (0.2)

70 <45.9>

Or dinar y inc ome

2,677 (2.5)

3,287 (3.0)

610 <22.8>

E xtr aor dinar y inc ome

－

(－)

－

(－)

－

<－>

E xtr aor dinar y losse s

132 (0.1)

450 (0.4)

317 <240.2>

Inc ome be for e inc ome taxe s

2,545 (2.3)

2,837 (2.6)

292 <11.5>

Cur r e nt inc ome taxe s

654 (0.6)

1,193 (1.1)

538 <82.4>

Pr

  • fit attr

ibutable to

  • wne r

s of par e nt

1,890 (1.7)

1,644 (1.5)

  • 246

<-13.0>

(Curre nt fisc a l ye a r) 450 Nic hiyo : Pro visio n fo r lo ss o n b usine ss o f sub sid ia rie s a nd a sso c ia te s d ue to fixe d a sse t impa irme nt lo sse s fo r F re vo F a rm Co ., L td . (Yo Y c ha ng e ) 538 (1) De c re a se in ta x b re a ks o n c a pita l inve stme nt 324 (2) Pro visio n fo r lo ss o n b usine ss o f sub sid ia rie s a nd a sso c ia te s o utsid e the sc o pe o f ta x-e ffe c t a c c o unting 159

6

(Millio ns o f ye n) *F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%).

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SLIDE 8

Consolidate d balanc e she e ts at e nd- 1H F Y2/ 17

[Asse ts] E nd-F Y2/ 16

E nd- 1H F Y2/ 17

Cha ng e Cur r e nt asse ts

30,235

37,326

7,091

F ixe d asse ts

47,099

48,040

940

[T angible fixe d asse ts]

(41,345)

(41,969)

(623)

[Intangible asse ts]

(689)

(943)

(254)

[Inve stme nts and othe r asse ts]

(5,064)

(5,127)

(62)

T

  • tal asse ts

77,334

85,367

8,032

[L iabilitie s and ne t asse ts] E nd-F Y2/ 16

E nd- 1H F Y2/ 17

Cha ng e Cur r e nt liabilitie s

23,423

29,187

5,763

L

  • ng- te r

m liabilitie s

12,381

13,938

1,557

[Inte r e sting- be ar ing de bt]

(10,886)

(11,980)

(1,094)

T

  • tal liabilitie s

35,805

43,126

7,320

T

  • tal ne t asse ts

41,529

42,240

711

[Common stoc k]

(8,049)

(8,049)

  • T
  • tal liabilitie s

and ne t asse ts

77,334

85,367

8,032

(Millio ns o f ye n) (Millio ns o f ye n) T

  • ta l a sse ts a s o f e nd-1H F

Y2/ 16: a ppro x. ¥8.0 b illio n inc re a se

流動資産（売上債権等）の増加 ：約70億円 固定資産の増加 ：約9億円 7

T

  • ta l a sse ts a s o f e nd-1H F

Y2/ 17: a ppro x. ¥8.0 b illio n inc re a se

 Inc re a se in c urre nt a sse ts (no te s a nd a c c o unts re c e iva b le - tra de , e tc .): a ppro x. ¥7.0 b illio n  I nc re a se in fixe d a sse ts: a ppro x. ¥0.9 b illio n

T

  • ta l lia b ilitie s/ ne t a sse ts a s o f e nd-1H F

Y2/ 17: a ppro x. ¥8.0 b illio n inc re a se

 I nc re a se in c urre nt lia bilitie s (no te s a nd a c c o unts pa ya b le , e tc .): a ppro x. ¥5.7 b illio n  I nc re a se in lo ng -te rm lia bilitie s: a ppro x. ¥1.5 b illio n  Inc re a se in ne t a sse ts (re ta ine d e a rning s, o the r c o mpre he nsive inc o me , e tc .): a ppro x. ¥0.7 b illio n

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SLIDE 9

Consolidate d state me nts of c ash flows for 1H F Y2/ 17

1H F Y2/ 17

I nc o me b e fo re inc o me ta xe s

2,837

De pre c ia tio n a nd a mo rtiza tio n

2,320

De c re a se (inc re a se ) in no te s a nd a c c o unts re c e iva b le - tra de

  • 3,894

De c re a se (inc re a se ) in inve nto rie s

  • 487

I nc re a se (de c re a se ) in no te s a nd a c c o unts pa ya b le - tra de

1,954

I nc re a se (de c re a se ) in a c c o unts pa ya b le - o the r

567

Othe r

2,123

Sub to ta l

5,421

I nc o me ta xe s pa id

  • 283

Othe r

278

Cash flows fr

  • m ope r

ating ac tivitie s

5,415

Purc ha se o f ta ng ib le fixe d a sse ts

  • 843

Othe r

  • 567

Cash flows fr

  • m inve sting ac tivitie s
  • 1,411

Cash flows fr

  • m financ ing ac tivitie s
  • 1,175

E ffe c t of e xc hange r ate c hange on c ash and c ash e quivale nts

  • 93

Ne t inc r e ase (de c r e ase ) in c ash and c ash e quivale nts

2,736

Cash and c ash e quivale nts at the e nd of pe r iod

9,229 8

(Millio ns o f ye n)

slide-10
SLIDE 10

Consolidate d financ ial for e c ast for F Y2/ 17 (vs. F

  • r

e c ast at be ginning of F Y)

F

  • re c a st a t b e g inning o f F

Y 1H F Y2/ 17 2H F Y2/ 17 F Y2/ 17

Ne t sale s

111,200 (100.0) 105,800 (100.0) 217,000 (100.0)

Ope r ating inc ome

2,800 (2.5) 500 (0.5) 3,300 (1.5)

Or dinar y inc ome

2,900 (2.6) 500 (0.5) 3,400 (1.6)

Pr

  • fit a ttr

ibuta ble to owne r s of pa r e nt

1,750 (1.6)

  • 150

(-0.1) 1,600 (0.7)

Re vise d fo re c a st

1H F Y2/ 17 Re sults

2H F Y2/ 17 F Y2/ 17

109,658 (100.0) 105,342 (100.0) 215,000 (100.0) 3,027 (2.8) 672 (0.6) 3,700 (1.7) 3,287 (3.0) 662 (0.6) 3,950 (1.8) 1,644 (1.5) 155 (0.1) 1,800 (0.8)

Diffe re nc e F a c to rs

1H F Y2/ 17 Re sults 2H F Y2/ 17 fo re c a st F Y2/ 17 fo re c a st 1H F Y2/ 17

◆Ne t sa le s －Sa le s o f ric e pro duc ts misse d ta rg e t ◆Ope ra ting inc o me －Utilitie s c o sts lo we r tha n initia l fo re c a st －Ope ra ting inc o me a t ne w pla nt hig he r tha n initia l fo re c a st －F

  • o d Ing re die nts, L
  • g istic s, a nd Othe r Busine sse s in

line with ta rg e ts 2H F Y2/ 17

◆Ne t sa le s －Ge ne ra lly in line with ta rg e t ◆Ope ra ting inc o me －Upwa rd re visio n fo r F

  • o d Pro duc ts Busine ss

－F

  • o d Ing re die nts, L
  • g istic s, a nd Othe r Busine sse s g e ne ra lly

in line with ta rg e ts Ne t sale s

  • 1,542

<-1.4>

  • 458

<-0.4>

  • 2,000

<-0.9>

Ope r ating inc ome

227 <8.1> 172 <34.4> 400 <12.1>

Or dinar y inc ome

387 <13.3> 162 <32.4> 550 <16.2>

Pr

  • fit a ttr

ibuta ble to owne r s of pa r e nt

  • 106

<-6.1> 305 <-> 200 <12.5>

9

(Millio ns o f ye n) (Millio ns o f ye n)

* F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%).

slide-11
SLIDE 11

Stra te g ie s Going F

  • rwa rd

Initia tive s for 2H F Y2/ 17

10

slide-12
SLIDE 12

1H Re vie w, str ate gie s for 2H and be yond

 Ac hie ve d e ffic ie nc y g a ins in 1H due to re o rg a niza tio n

(inte g ra te d ma na g e me nt in pro duc t de ve lo pme nt a nd ma nufa c turing )

1H Re vie w

Str ate gie s for 2H and be yond Hig he r Yo Y b ut misse d ta rg e t

Impr

  • ve me nt in pr
  • fitability at

Kagawa Plant Nar r

  • we r

losse s at Iwate Plant Re c ove r y tr e nd at Ur awa Plant Inc r e ase d YoY, be ating initial for e c ast Ope r ating mar gin 2.8% , e xc e e ding initial for e c ast of 2.5%

Ste p up initia tive s in no rma l te mpe ra ture ric e me a l pro duc ts Mo ve into ne w pro duc t a re a s

I mpro ve pro duc tivity Ste p up hiring a nd impro ve e mplo ye e re te ntio n

Ne w pla nts Sa le s

Operating income

 T

a rg e ting furthe r g a ins in 2H b y inte g ra ting ma nufa c turing sub sidia rie s a nd le ve ra g ing a dva nta g e s o f the Ho lding Co mpa ny struc ture Co ntinue to b o o st pro duc tivity E xpa nd line up o f c hille d b o xe d me a ls

11

slide-13
SLIDE 13

Sale s : pe r for manc e in 1H and initiative s going for war d

Chille d be nto me al boxe s: str

  • ng sale s
  • Stre ng the ne d line up o f ne w ric e b o wl me a ls a nd

se pa ra te -type c hille d b e nto me a l b o xe s I nc re a se d c a pa c ity a t e xisting pla nts; full-sc a le pro duc t de ve lo pme nt with insta lla tio n

  • f ne w pro c e ssing sta g e in supe rhe a te d ste a m line

Ric e balls: ge ne r ally ste ady YoY

  • Ba sic ing re die nts a nd pa c ka g e s re ne we d o n 26 Se pte mb e r; Co ntinue to de ve lo p

ne w pro duc ts tha t o ffe r hig h le ve ls o f c usto me r sa tisfa c tio n

20oC be nto me al boxe s : de c line in sale s due to shift to c hille d be nto me al boxe s

  • Sa le s de c line d Yo Y in 1H b ut still a n impo rta nt pro duc t ra ng e in te rms o f in-sto re

line ups; we will c o ntinue to de ve lo p ne w pro duc ts in the 20oC b o xe d me a l c a te g o ry, whic h c a n de live r le ve ls o f fla vo r no t po ssib le in o the r c a te g o rie s

Chille d Japane se Swe e ts: str

  • ng sale s
  • Pro po se d a se rie s o f ne w swe e ts with stro ng se a so na l the me s
  • De ve lo pe d ne w type o f Ja pa ne se swe e ts e mplo ying pa tissie rs with kno w-ho w

fro m we ste rn c o nfe c tio ne ry ha ve b e c o me po pula r with c o nsume rs

Othe r

  • Mo ve d into ne w pro duc t a re a s

12

slide-14
SLIDE 14

F luffy e g g Oya ko -do n: la unc he d No ve mb e r 24, 2014

F luffy and soft e gg Oyako- don: r

  • lle d out fr
  • m Oc tobe r

3, 2016

  • Impr
  • ve d stoc k flavor

We wo rke d c lo se ly with two le a d ing fo o d ma nufa c ture rs to d e ve lo p a sto c k b a se with a ric h, ma ture d fla vo r

  • Soft boile d e gg

Wo rking with a le a d ing fo o d ma nufa c ture r, we c a re fully se le c te d a la rg e r so ft b o ile d e g g s to c re a te a pro d uc t with a ric he r e g g fla vo r ¥430 (inc . ta x) ¥450 (inc . ta x)

  • Chic ke n pr

e par ation (mar inating) pr

  • c e ss

A spe c ia l va c uum tumb le r wa s use d to e nsure the ma rina d e fla vo r re a c he d re a c hing the c e nte r o f the me a t, e nha nc ing the fla vo r o f the c hic ke n

13

Ne w pr

  • duc t initiative s (1):

Oyako- don (c hic ke n and e gg r ic e bowl) r e ne wal

slide-15
SLIDE 15
  • Co nfe c tio ne ry sto re s a re se e ing stro ng de ma nd fo r Ja pa ne se swe e ts

inc o rpo ra ting we ste rn c o nfe c tio ne ry te c hniq ue s

  • We a re a lso ste pping up the de ve lo pme nt o f ne w pro duc ts with we ste rn

swe e t fla vo rs e mplo ying pa tissie rs →A new gooey pancake with white rare c he e se filling de ve lo pe d b y o ne o f o ur fe ma le e mplo ye e s ha s b e c o me ve ry po pula r with c o nsume rs

  • Using o ur fully a uto ma te d do ra ya ki (pa nc a ke ) ma nufa c turing ma c hine ,

whic h re q uire s minima l sta ff supe rvisio n, we ha ve ro lle d o ut a ra ng e o f ne w pro duc ts sinc e the Oc to b e r 2014 suc h a s a ne w pa nc a ke pro duc t fille d with fre sh c re a m; we pla n to la unc h a ne w pa nc a ke with c ho c o la te c re a m filling in Oc to b e r this ye a r.

14

Ne w pr

  • duc t initiative s (2): de ve loping our

r ange of Japane se swe e ts

slide-16
SLIDE 16

T he pla nt pe rfo rme d a he a d o f ta rg e ts in te rms o f b o th sa le s a nd pro fit in 2H, suppo rte d b y a n inc re a se in the numb e r o f sto re s supplie d, hig he r sa le s o f Chille d Be nto me a l b o xe s a nd inc re a se d e ffic ie nc y; the pla nt is a iming fo r furthe r impro ve me nt in 2H thro ug h o ng o ing e ffic ie nc y g a ins

Ne w plants : pe r for manc e in 1H and initiative s for 2H

Kagawa Plant

(sta rte d o pe ra tio ns in De c e mb e r 2013)

  • E

a rning s a t K a g a wa Pla nt, Ura wa Pla nt a nd I wa te Pla nt in 1H F Y2/ 17

  • K

a g a wa Pla nt

  • I

wa te Pla nt

Yo Y

(Re f) F ull-ye a r o pe ra ting inc o me fo re c a sts

K a g a wa

+230 (-50)

Ura wa

+230 (-50)

Iwa te

+480 (-500)

T

  • ta l

+ 940 (-600)

Cha ng e in pro fits Yo Y a t ne w pla nts (millio ns o f ye n)

  • Ura wa Pla nt

T he pla nt a c hie ve d pro fita b ility o n a mo nthly b a sis in 1H due to hig he r sa le s o f Chille d Be nto me a l b o xe s a nd tig ht c o st c o ntro l; in 2H the pla nt pla ns to inc re a se pro duc tio n line c a pa c ity a nd de ve lo p distinc tive ne w pro duc ts T he pla nt’ s o pe ra ting lo ss na rro we d a t a fa ste r pa c e tha n fo re c a st due to the dro p o ut o f sta rtup c o sts a nd rising c a pa c ity utiliza tio n a s the numb e r o f sto re s supplie d inc re a se d; the pla nt will c o ntinue to fo c us o n impro ving pro fita b ility in 2H

15

Pro duc tio n Ca pa c ity: Ma ximum 200,000 me a ls pe r da y

Pr

  • duc ts: Ric e -b a se d pro duc ts a nd

no o dle s

Iwate Plant

(sta rte d o pe ra tio ns in Ma y 2015) Pro duc tio n Ca pa c ity : Ma ximum 250,000 me a ls pe r da y

Pr

  • duc ts: Ric e -b a se d pro duc ts, no o dle

a nd de lic a te sse n ite ms

Ur awa Plant

(sta rte d o pe ra tio ns in June 2014) Pro duc tio n Ca pa c ity : Ma ximum 100,000 me a ls pe r da y

Pr

  • duc ts: Chille d Be nto me a l b o xe s
slide-17
SLIDE 17

Ope ra ting inc ome : initia tive s to improve the ope ra ting ma rg in

  • Use he a dq ua rte rs syste m (inte g ra te d ma na g e me nt in pro duc t de ve lo pme nt

a nd ma nufa c turing ) to tig hte n c o st c o ntro l

We will imple me nt the se a nd o the r initia tive s to b o o st pro fit ma rg ins

3.4% 1.6% 3.3% 1.1% 2.9% 1.0% 2.7% 1.4% 2.2% 0.7% 2.8%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 上期 下期 上期 下期 上期 下期 上期 下期 上期 下期 上期 下期 2/2012 2/2013 2/2014 2/2015 2/2016 2/2017

Ope ra ting ma rg in

16

  • Na rro w do wn numb e r o f pro duc ts
  • I

ntro duc e mo re a uto ma tio n syste ms into ma nufa c turing pro c e sse s

  • Re ta in pa rt-time sta ff to impro ve skills

1H 2H

F Y2/ 12

1H 2H

F Y2/ 13

1H 2H

F Y2/ 14

1H 2H

F Y2/ 15

1H 2H

F Y2/ 16

1H 2H

F Y2/ 17

slide-18
SLIDE 18

Re infor c e pr

  • duc tion c apabilitie s

L e ss ne e d fo r pe rso nne l

Reduc e wor kpl ac e ac c i dents

(c r eate safer wor kpl ac es for par t-ti me staff)

Re ta in pa rt-time sta ff Cre a te e q uipme nt ta ilo re d to

  • ur spe c ific a tio ns b y wo rking

c lo se ly with ma c hine ry ma ke rs fro m the de ve lo pme nt sta g e E a se la b o r sho rta g e Allo ws us to pro duc e distinc tive a nd c o mpe titive pro duc ts tha t a re o nly a va ila b le fro m the Wa ra b e ya Nic hiyo Gro up

I ntro duc e mo re a uto ma tio n syste ms into ma nufa c turing pro c e sse s

17

slide-19
SLIDE 19

Ha ppy Wo ma n Pro je c t: suppo rt fe ma le e mplo ye e s so tha t the y re ma in mo tiva te d o ve r the lo ng te rm Wa ra b e ya F a mily Pro je c t: de e pe n links b e twe e n e mplo ye e s, the ir fa milie s a nd the Co mpa ny

  • T

wo ma jo r ne w pro je c ts la unc he d

  • Use the inte g ra tio n o f sub sidia rie s a nd the a do ptio n
  • f the Ho lding Co mpa ny struc ture a s a n o ppo rtunity

to o ve rha ul pe rso nne l syste ms a nd impro ve sta ff e mplo yme nt c o nditio ns

18

Initiative s to tac kle the labor shor tage : ste p up hir ing and impr

  • ve e mploye e r

e te ntion

slide-20
SLIDE 20

Re infor c e the busine ss base to suppor t ne w gr

  • wth

 Ado ptio n o f the Ho lding Co mpa ny struc ture (Se pte mb e r 1, 2016): － Spe e d up de c isio n-ma king a nd stre ng the n q ua lity a ssura nc e syste ms

thro ug h inte g ra te d ma na g e me nt o f ma nufa c turing o pe ra tio ns

－ Optima lly a llo c a te huma n re so urc e s a nd impro ve e ffic ie nc y b y

inte g ra ting b a c k o ffic e de pa rtme nts

 Re va lua tio n o f a sse ts － F

Y2/ 2016: impa irme nt lo sse s o n the Ue da Pla nt a nd Mina mi Alps Pla nt

－ 1H F

Y2/ 17: Pro visio n fo r lo ss o n b usine ss o f sub sidia rie s a nd a sso c ia te s (F re vo F a rm Co ., L td.)

 F

a milyMa rt UNY Ho lding s e sta b lishe d Se pte mb e r 1, 2016

 L

a wso n to b e c o me a c o nso lida te d sub sidia ry o f Mitsub ishi Co rpo ra tio n in Ja nua ry 2017 thro ug h a te nde r o ffe r

Changes in the ope ra ting e nvironme nt

We a im to g ro w to g e the r with Se ve n-E le ve n b y re info rc ing the Gro up’ s b usine ss b a se a nd c o ntinuing to supply c o mpe titive pro duc ts

19

slide-21
SLIDE 21

Othe r topic s

  • I

mpro ving info rma tio n disc lo sure － Re va mpe d we b site o n Se pte mb e r 1, 2016  Pub lishe d la st 10 fisc a l ye a rs o f se c uritie s filing s a nd

e a rning s re po rts

 Pub lishe d la st thre e fisc a l ye a rs o f pre se nta tio n

ma te ria ls

 Upg ra de d E

ng lish la ng ua g e we b site

  • Re info rc ing c o rpo ra te g o ve rna nc e

－ I

ssue d a re po rt in re spo nse to ne w Co rpo ra te Go ve rna nc e Co de (July)

－ Co nside ring a ppo intme nt o f mo re o utside dire c to rs － Pla nning to intro duc e a pla tfo rm fo r e xe rc ising vo ting

rig hts a nd pro vide E ng lish la ng ua g e ve rsio n o f Sha re ho lde r Co nvo c a tio n

20

slide-22
SLIDE 22

Outlook for F Y2/ 18 and be yond

We a im to o ve rc o me the se a nd o the r issue s to a c hie ve o ur ROE ta rg e t

  • f mo re tha n 8% during the c o urse o f the ne xt thre e -ye a r me dium-te rm

ma na g e me nt pla n, due to b e a nno unc e d with F Y2/ 17 re sults

21

  • We ra ise d o ur fo re c a sts fo r F

Y2/ 17 to fa c to r in the stro ng pe rfo rma nc e in 1H I n 2H, we pla n to ide ntify issue s a nd de ve lo p initia tive s to drive g ro wth fro m F Y2/ 18 o nwa rd

  • I

ssue s tha t ne e d to b e ta c kle d

－ Rising la b o r c o sts: inc re a se s in the minimum wa g e a nd

la b o r sho rta g e s a re driving up c o sts

－ Gro wing shift to c hille d pro duc ts: e xpa nd pro duc tio n

c a pa c ity re spo nding to rising de ma nd fo r c hille d ite ms

－ De ve lo pme nts in the o pe ra ting e nviro nme nt:

c o mpe titio n inte nsifying in the c o nve nie nc e sto re se c to r

slide-23
SLIDE 23

G RO UP PHILO SO PHY

We will c o ntrib ute to the he a lthy a nd e njo ya b le e a ting ha b its o f o ur c usto me rs b y pro viding a se nse o f sa fe ty a nd pe a c e o f mind in a dditio n to va lua b le pro duc ts a nd se rvic e s.

22

Othe r a ffilia te d c o mpa nie s [Ja pa n]

Nic hiyo F re sh Co ., L td. Sun F

  • o ds Yo ko kura Co ., L

td. Nic hima n Co ., L td. F re vo F a rm Co ., L td.

[Ove rse a s]

Be ijing Wa nt-Ya ng F

  • o ds L

td. Be ijing Riya ng Xinro ng Co ., L td.