[PPT] - F isc al Ye ar E nde d F e br uar y 2017 Re sults Br ie fing PowerPoint Presentation

SLIDE 1

(2918) 2016年4月15日

F isc al Ye ar E nde d F e br uar y 2017 Re sults Br ie fing

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

(2918) April 18, 2017

SLIDE 2

Ove rvie w of F ina nc ia l Re sults for F Y2/ 17 a nd F ull- ye a r F

re c a st for F

Y2/ 18 (Consolida te d Ba sis)

2

SLIDE 3

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

F Y2/ 16 F Y2/ 17 Yo Y

Vs. Re vise d

fo re c a st Re sults Re vise d fo re c a st

(Anno unc e d in Oc t. 2016)

Re sults

Ne t sa le s

209,147 215,000

214,305

5,158

694

(100.0) (100.0)

(100.0)

<2.5> <-0.3>

Ope ra ting inc o me

3,088 3,700

4,099

1,011 399

(1.5) (1.7)

(1.9)

<32.8> <10.8>

Ordina ry inc o me

3,336 3,950

4,304

968 354

(1.6) (1.8)

(2.0)

<29.0> <9.0>

Pro fit

(a ttrib uta b le to o wne rs

f pa re nt)

1,428 1,800

2,281

852 481

(0.7) (0.8)

(1.1)

<59.7> <26.7>

E PS (Ye n)

(a ttrib uta b le to o wne rs

f pa re nt)

81.34 102.63

130.09 48.75 27.46

ROE (%)

3.5 –

5.4 1.9pt –

3 (Millio ns o f ye n)

*F

r the fisc a l ye a r e nd e d F

e b rua ry 29, 2016, the Co mpa ny b o o ke d impa irme nt lo sse s o f ¥1.8 b illio n und e r e xtra o rd ina ry lo sse s. *F

r the fisc a l ye a r e nd e d F

e b rua ry 28, 2017, the Co mpa ny b o o ke d pro visio n fo r lo ss o n g ua ra nte e s o f sub sid ia rie s a nd a sso c ia te s o f ¥0.44 b illio n a nd pro visio n o f a llo wa nc e fo r d o ub tful a c c o unts fo r sub sid ia rie s a nd a sso c ia te s o f ¥0.26 b illio n und e r e xtra o rd ina ry lo sse s. *F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%). Re vise d e stima te s fo r F Y2/ 17 a nno unc e d o n Oc to b e r 5, 2016.

SLIDE 4

Re vise d for e c ast (announc e d on Oc t. 5, 2016) and diffe r e nc e fac tor s

F Y2/ 17

Vs. F
re c a st

Re vise d fo re c a st

(Anno unc e d in Oc t. 2016)

Re sults Ne t sa le s

215,000

(100.0) 214,305

(100.0)

694

<-0.3> [Diffe re nc e fa c to rs] F

o d I

ng re d ie nts Busine ss

712

[Diffe re nc e fa c to rs] F

o d Pro duc ts Busine ss

+321

De c line in he a t, lig ht a nd wa te r e xpe nse s +200 De c line in re struc turing e xpe nse s +70

Othe r Busine sse s +201

(F

o d Ing re d ie nts, L
g istic s b usine sse s in line

with fo re c a sts)

F Y2/ 17

Vs. F
re c a st

Re vise d fo re c a st

(Anno unc e d in Oc t. 2016)

Re sults Ope ra ting inc ome

3,700

(1.7) 4,099

(1.9)

399

<10.8>

4

*F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%). Re vise d e stima te s fo r F Y2/ 17 a nno unc e d o n Oc to b e r 5, 2016. (Millio ns o f ye n) (Millio ns o f ye n)

SLIDE 5

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

F Y2/ 16

F Y2/ 17

Cha ng e

Cha ng e fa c to rs

T

tal ne t

sale s

209,147

214,305

5,158 <2.5>

F

o d

Pro d uc ts

163,665

168,186

4,520 <2.8>

(+) 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 c hille d b e nto me a l b o xe s (-) Co ntra c tio n in sa le s to supe rma rke ts

F

o d

Ing re d ie nts

24,145

24,341

195 <0.8>

(+) Gro wth in vo lume o f pro c e sse d ma rine pro duc ts ha ndle d (-) De c line in vo lume o f pro c e sse d c hic ke n pro duc ts a nd shrimp / pra wns ha ndle d

L

g istic s

14,143

14,781

638 <4.5>

(+) 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

7,192

6,995

196

<-2.7>

(＋) Sa le s g ro wth in te mpo ra ry sta ffing a nd c o ntra c ting b usine ss (-) De c line in la rg e pro je c ts in fo o d e ng ine e ring b usine ss

5

(Millio ns o f ye n) 163,665 168,186 24,145 24,341 14,143 14,781 7,192 6,995

209,147 214,305

50,000 100,000 150,000 200,000 F Y2/ 16 F Y2/ 17

(Millio ns o f ye n)

SLIDE 6

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

F Y2/ 16

F Y2/ 17

Cha ng e <Cha ng e (%)>

T

tal ope r

ating inc ome

3,088

4,099

1,011 <32.8>

F

o d Pro d uc ts

2,076

3,167

1,090 <52.5>

F

o d Ing re d ie nts

461

432

29

<-6.3>

L

g istic s

54

185

130 <240.6>

Othe r

365

525

160 <43.9>

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

130

211
341

<–>

YoY +¥1,011 million Cha ng e fa c tors

(Re tire me nt b e ne fits re la te d to Gro up re struc turing –¥390 millio n, initia tive s to a ddre ss a g ing fa c ilitie s –¥500 millio n)

6

(Millio ns o f ye n) 2,076 3,167 461 432 54 185 365 525 130

211

3,088 4,099

(500) 1,000 2,500 4,000 F Y2/ 16 F Y2/ 17

(Millio ns o f ye n) F

o d Pro duc ts Busine ss

F

o d I

ng re die nts Busine ss L

g istic s Busine ss

Othe r Busine ss I nte r-se g me nt tra nsa c tio ns

Othe r +120 One -o ff fa c to rs in F Y2/ 17 -890 I mpro ve me nt in pro duc tivity +230 I nc re a se in pe rso nne l e xpe nse s -610 De c line in utilitie s c o sts +620 Cha ng e in sa le s +180 T

ta l fo r ne w pla nts +1,360

SLIDE 7

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

F Y2/ 16

F Y2/ 17

Cha ng e

Ope r ating inc ome

3,088 4,099 1,011

(1.5) (1.9) <32.8> No n-o pe ra ting inc o me

680 647

33

(0.3) (0.3) <-4.9> No n-o pe ra ting e xpe nse s

432 442 9

(0.2) (0.2) <2.2>

Or dinar y inc ome

3,336 4,304 968

(1.6) (2.0) <29.0> E xtra o rdina ry inc o me

300 –

300

(0.1) (–) <-100.0> E xtra o rdina ry lo sse s

1,821 708

1,113

(0.9) (0.3) <-61.1> Pro fit b e fo re inc o me ta xe s

1,814 3,595 1,781

(0.9) (1.7) <98.2> T

ta l inc o me

ta xe s

385 1,314 929

(0.2) (0.6) <241.1>

Pr

fit

(a ttr ibutable to

wne r

s of pa r e nt)

1,428 2,281 852

(0.7) (1.1) <59.7>

F Y2/ 17: Bre a kdown of e xtra ordina ry losse s F re vo F a rm Co ., L td. Nic hima n Co ., L td.

Pro visio n o f a llo wa nc e fo r do ub tful a c c o unts fo r sub sidia rie s a nd a sso c ia te s: 264 60 204 Pro visio n fo r lo ss o n g ua ra nte e s o f sub sidia rie s a nd a sso c ia te s: 444 444 －

F Y2/ 16: Bre a kdown of e xtra ordina ry losse s

I mpa irme nt lo sse s I mpa irme nt lo sse s o n the Mina mi-Alps Pla nt a nd Ue da Pla nt I mpa irme nt lo sse s o n e xisting fa c ilitie s a fte r c ha ng e s to pro duc t line ups, e tc . 1,821

7

(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- F Y2/ 17

[Asse ts]

F Y2/ 16

F Y2/ 17

Cha ng e

Cur r e nt asse ts

30,235 36,316 6,081

Non- c ur r e nt asse ts

47,099 47,561 461

[Pr

pe r

ty, plant and e quipme nt]

[41,345] [41,427] [81]

[Intangible asse ts]

[689] [920] [230]

[Inve stme nts and

the r

asse ts]

[5,064] [5,213] [149]

T

tal asse ts

77,334 83,877 6,542

[L iabilitie s and ne t asse ts]

F Y2/ 16

F Y2/ 17

Cha ng e

Cur r e nt liabilitie s

23,423 26,660 3,236

Non- c ur r e nt liabilitie s

12,381 14,040 1,658

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

[10,886] [12,730] [1,844]

T

tal liabilitie s

35,805 40,700 4,895

T

tal ne t asse ts

41,529 43,176 1,647

[Re taine d e ar nings]

[25,281] [26,858] [1,577]

T

tal liabilitie s

and ne t asse ts

77,334 83,877 6,542

8

(Millio ns o f ye n)

T

ta l lia bilitie s/ ne t a sse ts a s of e nd- F

Y2/ 17: a ppr

x. ¥6.5 billion inc r

e a se

 I nc re a se in c urre nt lia bilitie s (a c c o unts pa ya b le - o the r, e tc .): a ppro x. ¥3.2 b illio n  Inc re a se in no n-c urre nt lia b ilitie s (lo ng -te rm le a se o b lig a tio ns, e tc .): a ppro x. ¥1.6 b illio n  I nc re a se in ne t a sse ts (re ta ine d e a rning s): a ppro x. ¥1.6 b illio n

T

ta l a sse ts a s of e nd- F

Y2/ 17: a ppr

x. ¥6.5 billion inc r

e a se

 I nc re a se in c urre nt a sse ts (c a sh a nd de po sits, e tc .): a ppro x. ¥6.0 b illio n  I nc re a se in no n-c urre nt a sse ts (inta ng ib le a sse ts, e tc .): a ppro x. ¥0.46 b illio n

SLIDE 9

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

F Y2/ 17 Pro fit b e fo re inc o me ta xe s 3,595 De pre c ia tio n a nd a mo rtiza tio n 4,797 Inc re a se (De c re a se ) in a llo wa nc e s a nd pro visio ns 1,299 Inte re st a nd divide nd inc o me

334

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

689

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

760

Inc 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 438 Inc re a se (de c re a se ) in a c c o unts pa ya b le - o the r 616 Othe r 792

Subtotal 9,757

Inc o me ta xe s pa id

1,226

Othe r 240

Ca sh flows fr

m ope r

a ting a c tivitie s 8,770

Purc ha se o f pro pe rty, pla nt a nd e q uipme nt

2,089

Othe r

630

Ca sh flows fr

m inve sting a c tivitie s
2,719

Ca sh flows fr

m fina nc ing a c tivitie s
1,628

Cha ng e s in a llo wa nc e s a nd pro visio ns (Bre a kdo wn)

I nc re a se (de c re a se ) in a llo wa nc e fo r do ub tful a c c o unts

318

I nc re a se (de c re a se ) in 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

53

I nc re a se (de c re a se ) in pro visio n fo r lo ss o n g ua ra nte e s

f sub sidia rie s a nd a sso c ia te s

444

I nc re a se (de c re a se ) in pro visio n fo r b o nuse s

250

I nc re a se (de c re a se ) in ne t de fine d b e ne fit lia b ility

340

E ffe c t o f e xc ha ng e ra te c ha ng e o n c a sh a nd c a sh e q uiva le nts

20

Ne t inc re a se (de c re a se ) in c a sh a nd c a sh e quiva le nts 4,443

Ca sh a nd c a sh e q uiva le nts a t the b e g inning o f pe rio d 6,493

Ca sh a nd c a sh e quiva le nts a t the e nd of pe riod 10,937

9

(Millio ns o f ye n)

SLIDE 10

Consolidate d financ ial for e c ast for F Y2/ 18

F Y2/ 17 Re sults

F Y2/ 18 F

r

e c ast

Cha ng e Ne t sa le s

214,305 221,000 6,694

(100.0) (100.0) <3.1> Ope ra ting inc o me

4,099 4,600 500

(1.9) (2.1) <12.2> Ordina ry inc o me

4,304 4,700 395

(2.0) (2.1) <9.2> Pro fit

(a ttrib uta b le to o wne rs

f pa re nt)

2,281 2,500 218

(1.1) (1.1) <9.6> E PS (Ye n)

(a ttrib uta b le to o wne rs

f pa re nt)

130.09

142.55

12.46

Cha ng e fa c to rs

(Billions of yen)

 Ne t sa le s: Inc re a se in d e live ry po int sto re s, hig he r sa le s o f c hille d b e nto me a l b o xe s  Ope ra ting inc o me :

(Po sitive fa c to rs) Impro ve me nt a t ne w pla nts +0.39, sa le s g ro wth +0.27, e nd o f o ne -

ff fa c to rs fro m pre vio us fisc a l ye a r +0.89 (re tire me nt b e ne fits re la te d to Gro up

re struc turing +¥0.39 b illio n, initia tive s to a d d re ss a g ing fa c ilitie s +¥0.5 b illio n) (Ne g a tive fa c to rs) Inc re a se in d e pre c ia tio n a nd a mo rtiza tio n -0.49, inc re a se in pe rso nne l e xpe nse s -0.38, he a d o ffic e re lo c a tio n c o sts -0.56

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

ME DIUM- T E RM ISSUE S AND F UT URE POL ICIE S

11

SLIDE 12

F Y2/ 17 Ove r vie w (1): Initiative s

 Re duc e d lo sse s a t ne w pla nts

Pro fita b ility ta rg e ts a c hie ve d a t K a g a wa , Ura wa a nd I wa te pla nts a s pla nne d

 I

nte g ra te d do me stic fo o d pro duc ts b usine ss

Wa ra b e ya Nic hiyo ’ s fo o d pro duc ts b usine ss, Wa ra b e ya K a nsa i, Wa ra b e ya T

ka i, a nd Wa ra b e ya Ho kka ido c o mb ine d into o ne

c o mpa ny

 I

mpro ve d pro duc tivity

I nte g ra te d ma na g e me nt o f pro duc t de ve lo pme nt a nd pro duc tio n pro c e ss Ca rrie d o ut re pa ir a nd ma inte na nc e wo rk to e nsure fo o d sa fe ty

 E

nha nc e d wo rking e nviro nme nts

L a unc he d initia tive s to impro ve jo b sa tisfa c tio n

12

SLIDE 13

F Y2/ 17 Ove r vie w (2): Pr

gr

e ss

Re duc e d lo sse s a t ne w pla nts

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

Kagawa +0.37 Urawa +0.29 Iwate +0.70 Total + 1.36

I n line with sta rt-o f-ye a r fo re c a sts

I nte g ra te d do me stic fo o d pro duc ts b usine ss

Unifie d pro duc t de ve lo pme nt, ma nufa c turing , ma na g e me nt a nd a c c o unting a c tivitie s Ac c e le ra te d the PDCA c yc le b y unifying a c tivitie s a t he a d o ffic e

I mpro ve d pro duc tivity

I nte g ra te d ma na g e me nt o f pro duc t de ve lo pme nt a nd pro duc tio n pro c e ss

▶Pro duc t spe c ific a tio ns ma tc he d to pro duc tio n pro c e sse s ⇔ pro duc tio n

pro c e ss ma tc he d to pro duc t spe c ific a tio ns Ca rrie d o ut re pa ir a nd ma inte na nc e wo rk to e nsure fo o d sa fe ty

▶I

mple me nte d a n inte nsive pla nt ma inte na nc e pro g ra m c o sting ¥0.5 b illio n

I mpro ve d wo rking e nviro nme nts

L a unc he d initia tive s to impro ve jo b sa tisfa c tio n

▶Re vie we d a nd re vise d wo rking re g ula tio ns, inc luding c hildc a re le a ve rule s ▶Re b uilt the Gro up’ s intra ne t to e nc o ura g e time ly sha ring o f info rma tio n

13

SLIDE 14

Me dium- te r m Issue s and F utur e Polic ie s

 Stre ng the n pro duc t de ve lo pme nt c a pa b ilitie s  Co ntinue to tig hte n c o st c o ntro l  Re info rc e the pro duc tio n fra me wo rk →Use existing pla nts e ffe c tive ly a nd inve st e ffic ie ntly  De ve lo p a nd intro duc e la b o r-sa ving e q uipme nt  Re lo c a te he a d o ffic e  E

sta b lish a ne w re c ruitme nt a nd tra ining se c tio n a nd a dive rsity pro mo tio n o ffic e

 Pro duc t de ve lo pme nt c a pa b ilitie s a nd pro duc t q ua lity  He a vy inve stme nt c o sts re la te d to b usine ss e xpa nsio n  E

mplo ye e a nd pa rt-time sta ff re c ruitme nt, initia tive s to impro ve sta ff re te ntio n ra te

Polic ie s Issue s

14

SLIDE 15

Polic ie s：Str e ngthe n pr

duc t de ve lopme nt c apabilitie s

Pr

duc ts with a str
ng and c le ar

diffe r e nc e in the mar ke t ar e the sour c e of War abe ya Nic hiyo’s absolute c ompe titive ne ss  Se t up te a ms to impro ve the ta ste o f ric e

Go a l is to de ve lo p ric e pro duc ts tha t a re still ta sty a fte r time

n the she lf：

Re vie w q ua lity o f ric e Ado pt mo re rig o ro us q ua lity c o ntro l sta nda rds fo r po lishe d ric e T ry o ut ne w ric e c o o king te c hno lo g ie s

 L

a unc h ne w c a te g o rie s: Stre ng the n de ve lo pme nt o f fro ze n me a ls (o nig iri ric e b a lls, b e nto me a l b o xe s, pa sta s) Put in pla c e de ve lo pme nt syste ms fo r 7 Pre mium (c hille d) me a ls

K e y initia tive s Co nsta ntly re ne w stro ng -se lling pro duc ts a nd c o ntinue to de ve lo p ne w pro duc ts tha t o ffe r va lue

 Cre a te ne w me a l pro po sa ls: switc h fro m sing le se lf-c o nta ine d me a ls to

b uffe t-type me a ls tha t c o nsume rs c a n c ho o se a nd put to g e the r the mse lve s

15

SLIDE 16

Str e ngthe n pr

duc t de ve lopme nt c apabilitie s: r

ic e ball r ange r e launc he d on 11 Apr il 2017

Change d molds and adjuste d pr e ssur e

Onig iri ric e b a ll sha ping (ne w e q uipme nt) Co o ke d ric e (ne w type )

Ne w pro duc ts Pre vio us pro duc ts

Rice grains

Onigir i r ic e balls ar e fluffie r Mor e stic ky and gr ainy

Ne w c ooke d r ic e is stic kie r and has gr ainie r te xtur e Moistur e pe ne tr ation r e duc e d 20% Contains bar r ie r

type ingr

e die nt

Cr ispie r se awe e d

16

Rice grains Rice grains Rice grains

Ne w pro duc ts Pre vio us pro duc ts

SLIDE 17

Str e ngthe n pr

duc t de ve lopme nt c apabilitie s:
the r

pr

duc ts

 Onig iri ric e b a ll se rie s

with dire c tly wra ppe d se a we e d (F illing o n vie w)

 Chille d b e nto me a l b o xe s:

T he Se ve n Be e f Curry

 Chille d Ja pa ne se swe e ts:

Na ma Do ra Se rie s

(do ra ya ki (pa nc a ke ) with fre sh whippe d c re a m)

Ma me da ifuku

(so ft mo c hi fille d with swe e t b e a n pa ste )

17

SLIDE 18

Polic ie s: Re infor c e the pr

duc tion fr

ame wor k

Use e xisting pla nts e ffe c tive ly a nd inve st e ffic ie ntly

1. Chille d b e nto me a l b o xe s pro duc tio n syste m



Ur awa Plant: a dde d ne w inte g ra te d pro duc tio n line fo r c hille d

b e nto me a l b o xe s (De c e mb e r 2016)



Sagamihar a Plant: ne w c hille d b e nto me a l b o xe s pro duc tio n

e q uipme nt to b e insta lle d (sc he dule d fo r Oc to b e r 2017) Othe r initia tive s: c o nsta ntly mo nito r c hille d b e nto me a l b o xe s line up

2. Chille d Ja pa ne se swe e ts pro duc tio n syste m



De sse r t Plant: Sa g a miha ra Pla nt No . 2 re na me d a s De sse rt

Pla nt, inde pe nde nt o f ma in Sa g a miha ra Pla nt



Nagoya Plant: Chille d Ja pa ne se swe e ts pro duc tio n

e q uipme nt to b e insta lle d (sc he dule d fo r June 2018)

E sta b lishe d c o mmitte e to o ve rse e pla nt re b uilding pro je c ts (Oc to b e r 2016)

18

SLIDE 19

Polic ie s: De ve lop and intr

duc e labor
saving e quipme nt
I

mpro ve pro duc tio n e ffic ie nc y fo r c hille d po rk c utle t ric e b o wls : I ntro duc e ro b o ts tha t c ut po rk c utle ts a nd a uto ma tic a lly a tta c h lids a nd b o wl inse rts

F

ully a uto ma te sa ndwic h pro duc tio n: I nsta ll a uto ma te d sa ndwic h filling ma c hine s

I

nsta ll a uto ma te d la b e ling ma c hine s (so me

nig iri ric e b a ll pro duc ts) a nd g ra dua lly e xpa nd

to o the r pro duc t line s

19

SLIDE 20

Polic ie s: Re loc ate he ad offic e

Ne w lo c a tio n: Huma x Shinjuku T

mihisa Building

12-flo o r ste e l fra me b uilding with to ta l a re a o f 1,280.16 tsub o (a ppro x 4,224m 2) Re a so ns fo r mo ve :

 I

mpro ve pro duc t de ve lo pme nt c o nditio ns, re info rc e a nd e nha nc e e ffic ie nc y o f a c tivitie s

→I

nte g ra te thre e se pa ra te pro duc t de ve lo pme nt site s a nd g e ne ra te Gro up syne rg ie s

 Co nso lida te Gro up c o mpa nie s a t o ne lo c a tio n →I

mpro ve o pe ra tio na l e ffic ie nc y (c o nso lida te ma na g e me nt divisio ns, e ffic ie ntly de plo y huma n re so urc e s)

→E

ne rg ize c o mmunic a tio n b e twe e n b usine ss g ro ups

 E

nha nc e wo rking e nviro nme nt

 I

mpro ve sta ff a nd e mplo ye e re te ntio n ra te

 I

mpro ve re c ruitme nt e nviro nme nt (shift fro m T a ma a re a to c e ntra l T

kyo )

20

SLIDE 21

Ove r se as e xpansion: ove r se as busine ss de par tme nt to be e stablishe d (June 2017)

 WARABE

YA USA (Hawaii) → relocate plant → increase production c a pa c ity

 PRI

ME DE L I(Dallas, Texas) → expand business in mainland US

US

 CP AL

L / CP RAM, T ha ila nd

 I

ndo ne sia Othe r Asia

 Be ijing a nd T

ia njin, China (Be ijing Wa nt-Ya ng F

o ds L

T D.)

→ e xpa nd b usine ss

China

Ove r se a s busine ss de pa r tme nt e sta blishe d, r e sour c e s pr

vide d

→Focus on busine ss in ma inla nd US

T e c hnic a l suppo rt

21

SLIDE 22

E SG Initiative s (tar

ge ting sustainable gr

wth in c or

por ate value )

Governance (G)  Increase number of outside directors

(resolution at Annual General Meeting of Shareholders in May 2017)

 Establish a Nomination and Remuneration Committee  Introduce a platform for shareholders to exercise voting rights Provide English language shareholder convocations

Reinforce corporate governance

22

SLIDE 23

E SG Initiative s (tar

ge ting sustainable gr

wth in c or

por ate value ) E nvir

nme nt (E

) Soc ie ty (S)

 Appro pria te ly dispo se o f wa ste fo o d g e ne ra te d b y

the Gro up’ s pla nts

 Re c yc le fo o d wa ste fo r a nima l fe e d a nd fe rtilize r  I

ntro duc e lo w-e missio n ve hic le s

 Ste p up sa fe ty a nd re lia b ility initia tive s  E

sta b lish a ne w re c ruitme nt a nd tra ining se c tio n a nd a dive rsity pro mo tio n o ffic e

 Cre a te ple a sa nt wo rking e nviro nme nts  Sig n a g re e me nts to pro vide e me rg e nc y supplie s during

disa ste rs

L

w-e missio n fle e t ra tio
n tra c k to rise fro m 39%

in F Y2/ 17 to 45% in F Y2/ 18

23

SLIDE 24

Me dium- te r m manage me nt plan (c onsolidate d)

186.5 201.6 209.1 214.3

221.0 230.0 242.0

3.95 4.50 3.33 4.30

4.70 5.50 6.10

2.27 2.77 1.42 2.28

2.50 3.30 3.70

0.0 4.0 8.0 0.0 100.0 200.0

F Y2/ 14 F Y2/ 15 F Y2/ 16 F Y2/ 17 F Y2/ 18 F Y2/ 19 F Y2/ 20

Ne t sa le s Ordina ry inc o me Pro fit

6.0 6.9 3.5 5.4 6.0 7.3 7.8 0.0 8.0 2019.…

Ma r. 2013 Sa g a miha ra Pla nt No . 2 (No w c a lle d the De sse rt Pla nt) De c . 2013 Ka g a wa Pla nt

Jun. 2014

Ura wa Pla nt Ma y 2015 I wa te Pla nt

T a rg e ting o rd ina ry inc o me o f ¥6.1b n in F Y2/ 20 b y inc re a sing pro d uc tio n c a pa c ity in o ptimum re g io ns a nd b y inve sting in g ro wth fie ld s (c hille d b e nto me a l b o xe s a nd Ja pa ne se swe e ts)

Increase production capacity by selecting optimum regions to make competitive products through integrated production development and production 8%

24 Aiming fo r ROE

f 8%
r hig he r

(Billio ns o f ye n) (%)

ROE

(Pla n) (Pla n) (Pla n)

SLIDE 25

GROUP PHI L OSOPHY

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.

Othe r a ffilia te d c ompa nie s

Nic hiyo F r e sh Co., L td. Sun F

ods Yokokur

a Co., L td. Nic hima n Co., L td. F r e vo F a r m Co., L td. Be ijing Wa nt- Ya ng F

ods L

td. Be ijing Riya ng Xinr

ng Co., L

td.

Ja pa n Ove r se a s

SLIDE 26

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 .

26