[PPT] - F ir st Half of the F isc al Ye ar E nding F e br uar y 2016 PowerPoint Presentation

SLIDE 1

As a fo o d inno va to r, we ha ndle a ll a spe c ts o f fo o d pro duc tio n a nd pio ne e r the e vo lutio n o f fo o d

WARABE YA NI CHI YO CO., L T D. (2918) Oc to b e r 7, 2015

F ir st Half of the F isc al Ye ar E nding F e br uar y 2016 (1H F Y2/ 16) R e sults Br ie fing

SLIDE 2

Ove r vie w of F inanc ial R e sults for 1H F Y2/ 16 and F ull-ye ar F

r

e c ast for F Y2/ 16 (Consolidate d Basis)

2

SLIDE 3

Consolidate d financ ial r e sults for 1H F Y2/ 16

1H F Y2/ 15 1H F Y2/ 16 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

R e sults Ne t sale s

103,407

(100.0)

110,000

(100.0)

108,430

(100.0)

5,023

<4.9>

1,569

<-1.4>

Ope r ating inc ome

2,744

(2.7)

3,000

(2.7)

2,386

(2.2)

358

<-13.0>

613

<-20.4>

Or dinar y inc ome

3,019

(2.9)

3,150

(2.9)

2,677

(2.5)

341

<-11.3>

472

<-15.0>

Ne t inc ome

1,776

(1.7)

2,100

(1.9)

1,890

(1.7)

113

<6.4>

209

<-10.0>

E PS (Ye n)

100.88 119.22

107.47

6.59

11.75

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/ 16 a nno unc e d o n April 8, 2015.

SLIDE 4

F

r

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

4 1H F Y2/ 16 Vs. F

re c a st

F

re c a st

a t b e g inning

f F

Y

R e sults Ne t sale s

110,000 (100.0)

108,430 (100.0)

1,569

<-1.4>

[Diffe re nc e fa c to rs]

F

o d Pro duc ts Busine ss
1,380

F

o d I

ng re die nts, L

g istic s, Othe r

Busine sse s

180

[Diffe re nc e fa c to rs]

F

o d Pro duc ts Busine ss
770

Of whic h, inc re a se in pe rso nne l e xpe nse s (E xisting pla nts)

500

Of whic h, inc o me fro m ne w pla nts

220

Of whic h, o the rs

50

F

o d I

ng re die nts, L

g istic s, Othe r

Busine sse s +150

1H F Y2/ 16 Vs. F

re c a st

F

re c a st

a t b e g inning

f F

Y

R e sults Ope r ating inc ome

3,000 (2.7)

2,386 (2.2)

613

<-20.4>

(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 (%). E stima te s fo r 1H F Y2/ 16 a nno unc e d o n April 8, 2015.

SLIDE 5

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

1H F Y2/ 15

1H F Y2/ 16

Cha ng e Cha ng e fa c to rs

T

tal ne t

sale s

103,407

108,430

5,023 <4.9>

F

o d

Pro duc ts 80,174

83,917

3,742 <4.7> I nc re a se d de live ry po int sto re s a nd inc re a se d sa le s g ro wth fo r ric e b a lls a nd c hille d b o xe d me a ls F

o d

I ng re die nts 12,728

13,042

313 <2.5> I nc re a se d sa le s o f pro c e sse d ma rine pro duc ts a nd pro c e sse d c hic ke n pro duc ts L

g istic s

6,403

7,029

625 <9.8> Gro wth in tra nsa c tio n vo lume in jo int distrib utio n b usine ss supplying Se ve n- E le ve n Othe r 4,099

4,442

342 <8.3> Sa le s o f F

o d

Ma nufa c turing E q uipme nt Busine ss re ma ine d so lid

5

(Millio ns o f ye n) * F ig ure s in < > sho w c ha ng e (%). 80,174 83,917 12,728 13,042 6,403 7,029 4,099 4,442 103,407 108,430 30,000 60,000 90,000 1H F Y2/ 15 1H F Y2/ 16

(Millions

f ye n)

F

od Produc ts Busine ss

F

od Ingr

e dients Busine ss L

gistic s Busine ss

Othe r Business

SLIDE 6

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

1H F Y2/ 15

1H F Y2/ 16

Cha ng e

T

tal ope r

ating inc ome

2,744

2,386

358

<-13.0>

F

o d Pro duc ts

2,027

1,609

418

<-20.6> F

o d I

ng re die nts 168

274

105 <62.8> L

g istic s

189

87

101

<-53.6> Othe r 465

550

85 <18.3> I nte r-se g me nt tra nsa c tio ns

106
135
29

<–>

2,027 1,609 168 274 189 87 465 550 2,744 2,386 (50) 2,000 1H F Y2/ 15 1H F Y2/ 16

(Millions of ye n)

F

o d

Pro duc ts Busine ss

Ope ra ting I nc o me fro m thre e ne w pla nts do wn ¥350 millio n Yo Y Ope ra ting inc o me fro m e xisting pla nts do wn ¥70 millio n Yo Y

(Millio ns o f ye n) Sa le s g ro wth +100 Pe rso nne l e xpe nse s

500

I mpro ve me nt in o pe ra ting lo ss a t K a g a wa Pla nt +300 I mpro ve me nt in o pe ra ting lo ss a t Ura wa Pla nt +50 Sta rt-up lo sse s a t I wa te Pla nt -700

Ne gative impac t on pr

fits
1,200

Positive impac t on pr

fits

+840

T

tal YoY: appr
x. -360

6

(Millio ns o f ye n) * F ig ure s in < > sho w c ha ng e (%).

De c line in utilitie s c o sts +150 De c line in de pre c ia tio n a nd a mo rtiza tio n +100 De c line in o the r c o sts +80 F

o d I

ng re die nts, L

g istic s a nd Othe r

Busine sse s / I nte r-se g me nt tra nsa c tio ns +60

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/ 16

1H F Y2/ 15

1H F Y2/ 16

Cha ng e

Ope r ating inc ome

2,744

(2.7) 2,386

(2.2)

358

<-13.0>

Non-ope r ating inc ome

444 (0.4) 443 (0.4)

<-0.1>

Non-ope r ating e xpe nse s

169 (0.2)

153 (0.1)

16

<-9.9>

Or dinar y inc ome

3,019 (2.9)

2,677 (2.5)

341

<-11.3>

E xtr aor dinar y inc ome

–

(–)

–

(–)

–

<–>

E xtr aor dinar y losse s

–

(–) 132

(0.1)

132 <–>

Inc ome be for e inc ome taxe s

3,019

(2.9) 2,545

(2.3)

473

<-15.7>

Cur r e nt inc ome taxe s

1,242

(1.2) 654

(0.6)

587

<-47.3>

Ne t inc ome

1,776

(1.7) 1,890

(1.7)

113

<6.4>

Bre a kdo wn o f ma in c ha ng e s 7

 I

mpa irme nt lo ss 132

(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 8

Consolidate d balanc e she e ts at e nd-1H F Y2/ 16

[Asse ts]

E nd-F Y2/ 15

E nd-1H F Y2/ 16

Cha ng e

Cur r e nt asse ts

32,607

37,005

4,397

F ixe d asse ts

44,509

48,382

3,872

[T angible fixe d asse ts]

(39,537)

(42,994)

(3,456)

[Intangible asse ts]

(580)

(644)

(63)

[Inve stme nts and othe r asse ts]

(4,391)

(4,743)

(352)

T

tal asse ts

77,117

85,387

8,270

[L iabilitie s and ne t asse ts]

E nd-F Y2/ 15

E nd-1H F Y2/ 16

Cha ng e

Cur r e nt liabilitie s

26,053

31,000

4,946

L

ng-te r

m liabilitie s

9,853

12,314

2,460

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

(8,971)

(11,054)

(2,083)

T

tal liabilitie s

35,906

43,314

7,407

T

tal ne t asse ts

41,210

42,072

862

[Common stoc k]

(8,049)

–

T

tal liabilitie s

and ne t asse ts

77,117

85,387

8,270

8

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

T

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

Y2/ 16: a ppro x. ¥8.2 b illio n inc re a se

 I nc re a se in c urre nt lia b ilitie s (no te s a nd a c c o unts pa ya b le , e tc .): a ppro x. ¥4.9 b illio n  I nc re a se in lo ng -te rm lia bilitie s: a ppro x. ¥2.4 b illio n  I nc 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. ¥0.8 b illio n

T

ta l a sse ts a s o f e nd-1H F

Y2/ 16: a ppro x. ¥8.2 b illio n inc re a se

 I nc 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. ¥4.3 b illio n  I nc re a se in fixe d a sse ts: a ppro x. ¥3.8 b illio n

SLIDE 9

Consolidate d state me nts of c ash flows for 1H F Y2/ 16

1H F Y2/ 15

1H F Y2/ 16

Cha ng e I nc o me b e fo re inc o me ta xe s 3,019

2,545

De pre c ia tio n a nd a mo rtiza tio n 2,147

2,269

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

5,212
5,438

De c re a se (inc re a se ) in inve nto rie s 860

723

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

3,745

2,025

I nc re a se (de c re a se ) in a c c o unts pa ya b le - o the r 2,675

525

Othe r 799

1,454

Sub to ta l 8,035

4,104

I nc o me ta xe s pa id

929
996

Othe r 147

253 Cash flows fr

m ope r

ating ac tivitie s

7,252

3,361

3,891

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

1,499
1,722

Othe r 81

248 Cash flows fr

m inve sting ac tivitie s
1,417
1,474
56

Cash flows fr

m financ ing ac tivitie s
1,922
2,290
367

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

3,898

398
4,297

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

10,610

8,447

2,162

9 (Millio ns o f ye n)

SLIDE 10

Consolidate d financ ial for e c ast for F Y2/ 16 (YoY)

F Y2/ 15 Re sults

F Y2/ 16 R e vise d for e c ast

Cha ng e

Ne t sale s

201,680 (100.0)

211,500 (100.0)

9,819 <4.9>

Ope r ating inc ome

4,137 (2.1)

2,900 (1.4)

1,236

<-29.9>

Or dinar y inc ome

4,502 (2.2)

3,200 (1.5)

1,302

<-28.9>

Ne t inc ome

2,775 (1.4)

2,050 (1.0)

725

<-26.1>

E PS (Ye n)

157.55

116.51

41.04

10 (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

Consolidate d financ ial for e c ast for F Y2/ 16

(Vs. F

r

e c ast at be ginning of F Y)

11

F

re c a st a t b e g inning o f F

Y 1H F Y2/ 16 2H F Y2/ 16 F Y2/ 16

Ne t sale s

110,000 (100.0) 105,000 (100.0) 215,000 (100.0)

Ope r ating inc ome

3,000 (2.7) 1,500 (1.4) 4,500 (2.1)

Or dinar y inc ome

3,150 (2.9) 1,450 (1.4) 4,600 (2.1)

Ne t inc ome

2,100 (1.9) 800 (0.8) 2,900 (1.3)

Re vise d fo re c a st 1H F Y2/ 16 Re sults 2H F Y2/ 16 F Y2/ 16

108,430 (100.0) 103,070 (100.0) 211,500 (100.0) 2,386 (2.2) 513 (0.5) 2,900 (1.4) 2,677 (2.5) 522 (0.5) 3,200 (1.5) 1,890 (1.7) 159 (0.2) 2,050 (1.0)

Diffe re nc e F a c to rs 1H F Y2/ 16 2H F Y2/ 16 F Y2/ 16

1H F Y2/ 16

◆Ne t sa le s －Sa le s o f c hille d pro duc ts miss ta rg e t ◆Ope ra ting inc o me －Rise in pe rso nne l e xpe nse s －De te rio ra tio n in pro fita b ility a t ne w pla nts －Pro fits hig he r Yo Y in fo o d ing re die nts, lo g istic s, a nd o the r

b usine sse s 2H F Y2/ 16

◆Ne t sa le s

T a rg e t fo r c hille d pro duc t sa le s re vise d, de spite c o ntinue d stro ng de ma nd fo r ric e pro duc ts

◆Ope ra ting inc o me

－T

a rg e t fo r o pe ra ting inc o me fro m ne w pla nts re vise d in lig ht o f pe rfo rma nc e in first ha lf I mpa c t o f hig he r pe rso nne l e xpe nse s a t e xisting pla nts like ly to c o ntinue into se c o nd ha lf

Ne t sale s

1,569

<-1.4>

1,931

<-1.8>

3,500

<-1.6>

Ope r ating inc ome

613

<-20.4>

985

<-65.7>

1,600

<-35.6>

Or dinar y inc ome

472

<-15.0>

927

<-64.0>

1,400

<-30.4>

Ne t inc ome

209

<-10.0>

641

<-80.1>

850

<-29.3>

(Millio ns o f ye n)

SLIDE 12

Initiative s for 2H F Y2/ 16 Str ate gie s Going F

r

war d

12

SLIDE 13

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

13



Re sp o nd to c ha ng e s in the o p e ra ting e nviro nme nt

1H Re vie w

Stra te g ie s fo r 2H a nd Be yo nd

Sa le s o f c hille d pro duc ts miss ta rg e t

I mpro ve me nt a t K a g a wa Pla nt Ura wa Pla nt misse s ta rg e t I wa te Pla nt misse s ta rg e t

Rise in pe rso nne l e xpe nse s due to la b o r sho rta g e s a nd upg ra de s to q ua lity a ssura nc e syste m

Re info rc e pro duc t line up Re vie w pro duc ts Ste p up hiring a nd impro ve e mplo ye e re te ntio n

Ne w pla nts Sa le s E xpe nse s

Bo o st pro duc tivity



I mple me nt initia tive s to suppo rt me dium- a nd lo ng -te rm g ro wth Re fre sh c o re pro duc ts

SLIDE 14

R e infor c e pr

duc ts

14

Stre ng the n line up o f b re a d pro duc ts

(sa ndwic he s, ro lle d sa ndwic he s)

Add mo re ite ms to the c hille d

Ja pa ne se c o nfe c tio na ry line up

Stre ng the n the ric e b a ll line up
Chille d b o x me a ls: re fre sh c o re pro duc ts

SLIDE 15

R e infor c e pr

duc ts: loc al pr
duc ts

15

Ho kka ido T

ho ku

Chukyo K ita ka nto K a nsa i Shiko ku

Ya wa ta ha ma Ve g e ta b le Cha npo n No o dle s ¥480 Shino jima White b a it Ric e Bo x Me a l ¥298 Big Bite ! Za ng i Burg e r ¥320 Just a s it is! K a tsudo n Ric e Ba ll ¥180 Ao mo ri Only! Cha rc o a l-g rille d So c ke ye Sa lmo n Bo x Me a l ¥550 K

shie n Ome le t So b a

Ric e Ba ll ¥140 Se a so ne d Co d Ro e Ric e Ba ll ¥230 Sa lte d Sa lmo n Ro e Ric e Ba ll ¥240 Ha nd-ro lle d Na nb a n Miso Ric e Ba ll ¥110 Swe e t Re d Be a n Ric e Ba ll ¥130 Ha nd-ro lle d Ric e Ba ll with Plump Cla ms ¥130 T

a ste d Ric e Ba ll with So y

Sa uc e Se a so ning ¥110 Spic y! Ma b o Ric e ¥430 F luffy Cra b Ome le t

n Ric e

¥450 Crispy F rie d Ga rlic Ric e Ba ll ¥140 (All pric e s inc lusive o f ta x; pro d uc ts o n sa le fo r limite d time o nly, so so me ma y c urre ntly b e una va ila b le )

SLIDE 16

Ne w plants

16

Re fre shing c o re pro duc ts E xpa nding line up o f c hille d b o xe d me a ls

K

a g a wa Pla nt (sta rte d o pe ra tio ns in De c e mb e r 2013)

Ura wa Pla nt (sta rte d o pe ra tio ns in June 2014)
I

wa te Pla nt (sta rte d o pe ra tio ns in Ma y 2015)

Pe rfo rma nc e b e a t ta rg e ts in 1H due to pro duc tivity impro ve me nts Co ntinue initia tive s into 2H Pe rfo rma nc e impro ving due to g ro wth in the numb e r o f sto re s supplie d a nd hig he r pro duc tio n vo lume

T a rg e ting simila r impro ve me nts in F Y2/ 17 a nd b e yo nd

Amo unt o f pro duc tio n: Ma ximum 200,000 me a ls pe r da y Pro duc ts: Ric e -b a se d pro duc ts, no o dle Amo unt o f pro duc tio n: Ma ximum 250,000 me a ls pe r da y Pro duc ts: Ric e -b a se d pro duc ts, no o dle , de lic a te sse n ite ms Amo unt o f pro duc tio n: Ma ximum 100,000 me a ls pe r da y Pro duc ts: Chille d b o xe d me a ls

SLIDE 17

R e vie w pr

duc ts, ste p up hir

ing and impr

ve e mploye e r

e te ntion

17

Dire c tly hire pa rt-time wo rke rs,

pro mo te lo ng e r-te rm e mplo yme nt

Re vie w pro duc t line up mix a nd

pro duc t sta nda rds

SLIDE 18

Othe r initiative s

WARABE YA NI CHI YO CO., L T D.

Quality Assur anc e De pt.

WARABE YA K ANSAI CO., L T D. WARABE YA T OK AI CO., L T D. WARABE YA HOK K AI DO CO., L T D.

F

od Pr
duc ts Busine ss
Pla nt inspe c tio ns b y e xte rna l pa rtie s
Co mpa ny struc ture re o rg a nize d o n Se pte mb e r 1, 2015

18

Initiative s to suppor t manufac tur ing of safe pr

duc ts that e nsur

e c ustome r pe ac e of mind

Qua lity a ssura nc e a c tivitie s c e ntra lize d to stre ng the n ma na g e me nt o rg a niza tio n a nd spe e d up de c isio n ma king

SLIDE 19

19

We will imple me nt initia tive s in 2H to drive g ro wth fro m F Y2/ 17 o nwa rd We fo re c a st pro fit g ro wth fro m F Y2/ 17 o n the b a c k o f hig he r sa le s, b ut we a re fo rmula ting a ne w me dium-te rm ma na g e me nt pla n b a se d o n a sse ssme nt o f the e ffe c tive ne ss o f c urre nt me a sure s

SLIDE 20

Gro up Philo so phy

We will c o ntrib ute to the he a lthy a nd e njo ya b le die ts 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.

Othe r a ffilia te d c o mpa nie s [Do me stic ]

NI CHI YO F RE SH CO., L T D. SUN F OODS YOK OK URA CO., L T D. NI CHI MAN CO., L T D. F RE VO F ARM CO., L T D.

[Ove rse a s]

Be ijing Wa nt-Ya ng F

o ds L

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

SLIDE 21

T his do c ume nt c o nta ins “fo rwa rd-lo o king sta te me nts” b a se d o n the Co mpa ny’ s pla ns, fo re c a st, b usine ss stra te g ie s a nd po lic ie s a t the time o f pre pa ra tio n. T he se sta te me nts inc lude the Co mpa ny’ s ma na g e ria l judg me nts a nd a ssumptio ns ma de b a se d o n info rma tio n a va ila b le b e fo re its a nno unc e me nt, a nd a c tua l re sults ma y diffe r ma te ria lly fro m tho se a ntic ipa te d in the sta te me nts due to c ha ng e s in va rio us fa c to rs. T he re fo re , the Co mpa ny unde rta ke s no o b lig a tio n to g ua ra nte e tha t the se “fo rwa rd-lo o king sta te me nts” inc luding e a rning s fo re c a st de sc rib e d in this do c ume nt will b e va lid in the future .