Investors Information Meeting

Transcription

1 ARIAKE JAPAN Co.,Ltd. Investors Information Meeting Fiscal Year 2004 ended March 31, 2004 May 13, 2004

2 Contents 3. Business Results for the Current Period 4. Packing Center: Characteristics 5. Packing Center: Production Capacity 6. ARIAKE Farm: Purpose of Project 7. ARIAKE Farm: Recycling System 8. Business Results for the Current Period 9. F. P. Natural Ingredients S.A.S. 10. F.P.N.I.BELGIUM N.V. 11. Business Results for the Current Period 12. Net Sales from Chinese Operations 13. Growth Rate of Net Sales from Chinese Operations 14. Business Results for the Current Period 15. Management FY2005 ARIAKE Japan 16. Management FY2005 Subsidiaries 17. Fy2004 Operating Results (Consolidated 18. Operating Results (Consolidated) 19. Operating Results (Consolidated) 20. Fy2004 Operating Results (Non Consolidated) 21. Operating Results (Non Consolidated) 22. Operating Results (Non Consolidated) 23. Net Sales 24. Net Sales (Industrial Classification) 25. Ordinary Income 26. Total Assets 27. Operating Income Ratio (Consolidated) 28. Ordinary Income Ratios (Consolidated) 29. Net Income Ratio Consolidated) 30. Marginal Profit Ratio (Non Consolidated) 31. Cash Flow 32. Capital Investment 33. Depreciation Expense 34. ROE 35. EPS 36. Long-Term (Five-Year) Management Plan 37. Long-Term (Five-Year) Management Plan 38. Natural seasoning product Market

3 Business Results for the Current Period ARIAE JAPAN Establishment and launch of Packing Center Investment JPY 650 yen Advancement of the product strategy to provide the highest quality products Building an environmentally friendly recycling system due to the establishment of ARIAKE Farm Comprehensive recycling system to handle waste from raw materials to finished products

4 Packing Center :Characteristics ARIAKE JAPAN Packing Center Customer Needs (Product Development) a Taking full advantage of the merit of natural seasonings b Capability of managing the entire production process from raw materials to production and shipping c Maintenance of the production environment d Flexible production and supply system Daily Manufacturers Stores

5 Packing Center : Production Capacity

6 ARIAKE Farm : Purpose of Project Creation of a new agri-business centered around the application of soup residue from the Kyusyu Plant Building the ARIAKE Farm Association as a model for rejuvenating and revitalizing Japanese agriculture Creation of recycling-based agri-business reflecting to current needs Production of safe, healthy agricultural products Solution for the issues of the aging farm population and lack of young people to carry on Revival of internationally competitive Japanese agriculture Promotion of locally led environmentally friendly agriculture Bio-recycle soup residue from the Kyusyu Plant Revitalization of Kyusyu agriculture through collaboration with livestock and crop agriculture industries Creation of business in rural area applying the various forms of value offered by agriculture

7 ARIAKE Farm Recycling System ARIAKE JAPAN ARIAKE Healthy agricultural products Organic vegetables / rice Kyusyu Plant Local fish farms Food residue Uchishiro microorganisms Fermented animal feed Local pig farms Healthy livestock Healthy farm-raised fish Bio-processing System Fermented animal feed Local poultry / daily farms Fermented fertilizer Local farms Compost and liquid fertilizer with living bacteria ARIAKE Healthy eggs Compost with living bacteria Organic vegetables Liquid fertilizer with living bacteria Organic rice Healthy fruits

8 Business Results for the Current Period Subsidiaries Business Strategy in Europe Establishment of wholly owned subsidiary in Maasmechelen in Belgium, with 2.3 million euros of capital Acquisition of plant sites in France and Belgium Start of ordering equipment Investment plan: 2.5 billion yen Completion date of the construction: at the end of 2005

9 F. P. Natural Ingredients S.A.S. France Plant Alencon city Capital 1mil. Euro Plant site area 40,800 Building area 4,515

10 F.P.N.I. BELGIUM N.V. Capital : 2.3 mil. Euro Plant site area 40,000 40,000 Building area 7,572 Belgium Plant Maasmechelen city

11 Business Results for the Current Period Subsidiaries Construction of new plant by Chinese subsidiary Responding to rapid growth of the Chinese market Acquisition of plant site with 80,000 in the seaside industrial zone in QINGDAO Expansion of natural seasoning facilities Investment: 6 million US dollars Estimate of the demand in Chinese market :4.5 times current level over coming five years

12 Net Sales from Chinese Operation (est.)

13 Growth Rate of Net Sales from Chinese Operation Growth rate over 5 years To Chinese market To Japanese market Overall

14 Business Results for the Current Period ARIAKE Group Rationalization of US subsidiary operations Combining research function and production department into one in Virginia for unified management (sold of R&D facilities in New York Loss on rationalization costs: 600,000 US dollars

15 Management plan for FY 2004 ARIAKE JAPAN Completion of the new facilities for new technologies and move to operate for commercial production Start of the operation: Second half of FY 2005 Investment: 300 million yen Realization of Concept of Ariake Farm Comprehensive recycling system covering from raw materials to finished products Revitalization of agriculture through the use of food residue In-house production of vegetables been purchased Significant cost savings

16 Management plan for FY2004 Subsidiaries Promotion of European operations Beginning new plant construction in France and Belgium completion scheduled for end of Expansion of Plant in China Beginning construction in 2004 complete in 2005 Management shakeup profitably in US operations

17 FY2004 Operating Results (Consolidated) (mil. Yen) FY2004 FY2003 +/- Y-Y FY2005 (E) Net Sales 19,458 19, % 20,800 Operating Income 5,718 5, % 6,250 Operating Income Ratio % 0.9% 30.0 Ordinary Income 5,930 5, % 6,400 Ordinary Income Ratio % 0.7% 30.8 Net Income 3,419 3, % 3,670 EPS (Yen)

18 Operating Results (Consolidated) Net Sales Increase 2.2 ARIAKE JAPAN Increased st Half: Well in processed food and restaurant industry field 2 nd Half: Same level of growth by unexpected emergence of BSE in USA and outbreaks of bird flu Overseas Subsidiaries U.S.A.: Increased 5.6 Expanding marketing to processed food manufactures China: The same level of a year ago Focus on export sales to Japan

19 Operating Results (Consolidated) Operating Income Increased 5.3 Implementation of cost improvement through Reduced labor expense and lower depreciation Operating income ratio: Increased 0.7 ( ) Ordinary Income Increased 4.5 Improve of operating income though American subsidiary rationalized Ordinary income ratio: Increased 0.7 ( )

20 Fy2004 Operating Result (Non Consolidated) (mil. Yen) FY2004 FY2003 +/ Y-Y FY2005(E) Net Sales 18,288 17, ,370 Operating Income 5,574 5, ,150 Operating Income Ratio % 0.7% 31.8 Ordinary Income 5,813 5, ,300 Ordinary Income Ratio % Net Income 3,343 3, ,600 EPS (Yen)

21 Operating Results (Non Consolidated) Net Sales Steady progress of marketing strategies under deflationary slump Growth field : Processed food product (up 5.5 ) Restaurant industry (up 4.7 ) Same level of growth by unexpected emergence of BSE in USA and outbreaks of bird flu led to severely reduced consumer demand in 2 nd half Increased 3.1 over the previous fiscal year Growth rate for 3 years For Instant Noodle : 93.4 For Processed food : For Restaurant Industry : 112.7

22 Operating Results (Non Consolidated) Operating Income Rapidly improvement of rate for cost of sales FY2004 FY2003 +/ Target FY2005 Operating Income Ratio % Marginal Profit Ratio % Fixed Expenses Ratio % Depreciation Ratio % Ordinary Income Improvement of ordinary income ratio due to improvement of operating income ratio Ordinary income ratio: up 0.2% (31.6% 31.8%, FY2005 target: 32.5%)

23 Net Sales

24 Net Sales(Industrial Classification)

25 Ordinary Income

26 Total Assets

27 Operating Income Ratio (Consolidated)

28 Ordinary Income Ratio (Consolidated)

29 Net Income Ratio (Consolidated)

30 Marginal Profit Ratio (Non Consolidated)

31 Cash Flow

32 Capital Investment

33 Depreciation Expense

34 ROE

35 EPS Stock Split 1:1.1 Stock Split Split Stock 1:1.1 Split Stock 1:1.1 Split 1:1.25 1:1.1 Stock

36 Long-Term (Five-Year) Management Plan (From FY 2003 to FY 2007)

37 Long-Term (Five-Year) Management Plan (Net Sales Ordinary Income) Numerical Target in FY2007 (Billion Yen) Net Sales Ordinary Income Consolidated Non Consolidated Growth Rate of Five-Year-Term Net Sales Ordinary Income Consolidated Non Consolidated

38 Natural seasoning product market (beef, pork and chicken) Comparison of the market trend and Ariake Japan Market Share (Mil. Yen) FY2000 FY2001 FY2002 FY2003 FY2004 Market ARIAKE

39 Management Coordination Dept. Director and Manager Sueo Kikushima TEL FAX ARIAKE JAPAN Co.,Ltd Ebisu-minami,Shibuya-ku, Tokyo JAPAN