financial results presentation for fiscal 2012 year ended ... · 4 fiscal 2012 consolidated...

1

Financial Results Presentation for Fiscal 2012— Year Ended March 31, 2013 —

May 16, 2013The Nisshin OilliO Group, Ltd.

2

Takao ImamuraPresident and Representative Director

Summary of Financial Results for Fiscal 2012 and Financial Forecasts for Fiscal 2013

GROWTH 10 Phase II Final Fiscal Year— Efforts towards Business Structure Reform and

the Formulation of a New Medium-Term Management Plan —

3

Summary of Financial Results for Fiscal 2012 and Financial Forecasts for Fiscal 2013

4

Fiscal 2012 Consolidated Financial Results

FY12 FY11 Change

Net sales 309,981 312,628 -0.8%Operating income 4,227 5,900 -28.4%Ordinary income 4,471 5,395 -17.1%

Net income 1,508 3,833 -60.7%

Reference: Non-consolidated Financial Results

FY12 FY11 Change

Net sales 187,238 182,602 +2.5%Operating income 3,862 4,470 -13.6%Ordinary income 4,702 5,252 -10.5%

Net income 2,528 2,455 +3.0%

(Millions of yen)

(Millions of yen)

5

Results by Segment (1)

3,649 3,436

200,562 206,942

2,500

3,000

3,500

4,000

150,000

170,000

190,000

210,000

FY11 FY12

Oils and Meals Business

1,934

809

86,023

74,923

0

500

1,000

1,500

2,000

2,500

3,000

20,000

40,000

60,000

80,000

100,000

FY11 FY12

Processed Oils and Fats Business

Operating income (Right axis: Millions of yen)

Net sales (Left axis: Millions of yen)

[Oils and Meals Business]・ Increased earnings / reduced profits. While oils sales fell below the previous year, meals sales unit prices

exceeded the previous year and overall sales increased. However, raw materials prices exceeded the previous year and hovered at high prices. Also, despite improvements, difficult conditions continued at Dalian Nisshin and business overall posted lower profits.

[Processed Oils and Fats Business]・Reduced earnings / reduced profits. Although domestic sales posted increased earnings, profits declined at ISF

and overall sales declined year on year. With regards to operating income, profits fell due to the tough situation at ISF plus the goodwill amortization expenses.

6

Results by Segment (2)

-221 -273

7,095 7,081

-500

0

0

2,500

5,000

7,500

FY11 FY12

Healthy Foods Business

638

399

10,740 12,487

0

200

400

600

800

0

4,000

8,000

12,000

FY11 FY12

Fine Chemicals Business

40 44

4,740 5,285

0

50

100

0

2,500

5,000

FY11 FY12

Soy Foods and Materials Business

Operating income (Right axis: Millions of yen)

Net sales (Left axis: Millions of yen)

[Healthy Foods Business]・ “Nisshin Dressing: Diet” and “Nisshin Mayodore” were strong and sales of dressing and mayonnaise varieties

also had increased. Overall sales of the business were flat year on year and operating losses increased to ¥273 million.

[Fine Chemicals Business]・Due to IQL results being reflected on an annual basis, earnings increased year on year, but there were goodwill

amortization expenses and profits fell.

[Soy Foods and Materials Business]・As a result of business development in which production, sales and technical support were combined,

year-on-year earnings and profits rose.

7

Fiscal 2013 Consolidated Forecasts

FY13 FY12 Change

Net sales 340,000 309,981 9.7%Operating income 6,700 4,227 58.5%Ordinary income 6,000 4,471 34.2%

Net income 2,700 1,508 79.0%

Reference: Non-consolidated Financial Forecasts

FY13 FY12 Change

Net sales 208,000 187,238 11.1%Operating income 4,700 3,862 21.7%Ordinary income 5,000 4,702 6.3%

Net income 2,900 2,528 14.7%

(Millions of yen)

(Millions of yen)

GROWTH 10 Phase II Final Fiscal Year— Efforts towards Business Structure Reform and

the Formulation of a New Medium-Term Management Plan —

8

GROWTH 10 Results Trends

4,113

8,272

10,435

6,966

5,900

4,227 4,560

8,043

10,302

6,308 5,395

4,471

1,876

3,065

5,104

2,122

3,833

1,508

298,196 337,925 301,299

305,297 312,628

309,981

FY07 FY08 FY09 FY10 FY11 FY12

Operating income Ordinary income Net income Net sales(Millions of yen)

9

Efforts towards Business Structure Reform

10

Final fiscal year of GROWTH 10:Promoting business structure reform through the two prongs of “Growth Strategies” and “Structural Reform Strategies”

Growth Strategies◇Establishment of a firm growth model

In accordance with the rapid structural changes of the oil manufacturing business, uncover growth factors and values from diverse standpoints, such as those of business, technology, overseas and human resources, and design a growth model based on a vision of the future

Keyword: “Innovation”・Based on a macro perspective, organically

combine the functions of Group companies and organizations and create new functions

・Fuse technological development and marketing from the standpoint of customers and produce new values and services

・Promote the establishment of technologies which become the new axis of growth

Structural Reform Strategies◇Promote structural reform to bolster

competitiveness Create a profits structure with competitive

strength, which is able to realize constant expected earnings in any kind of environment

Reform the old-style operations / cost structure and create a flexible and agile organizational structure which is able to respond to change

Priority Policies・Bolster the earnings of the oils and meals

business・Restructure the processed oils and fats business

and the oils and meals business in China・Secure a simple and furthermore efficient

business structure

Aim for a business structure capable of securing earnings stably, in any kind of environment

Business Structure Reform: Major Issues of Fiscal 2013

Bolster earnings of oils and meals business

Business structure reform of ISF

Business structure reform of business in China

Business structure reform of healthy foods business

Continuous growth of fine chemicals business

Optimize overall production / distribution and transform into a thoroughgoing low

cost structure

Restructure the operations, costs, personnel / organization structure into structures appropriate to the business

environment

Bolster financial strength / balance sheet compression

Abolish / merge / reorganize Group companies

11

Priority Issues of Fiscal 2013 (1)

Bolster earnings of the oils and meals business Core categories earnings improvements

Continuation of appropriate sales prices

Expand sales of profitable goodsExpand sales, bring new products to the market in premium oils, olive oil, sesame oil and healthy oil

Optimize overall production / distribution and transform into a thoroughgoing low cost structure

Establishment of a combined supply structure of imported oil, including palm oil, and oil extractionCreate dual use expression-extraction of the extraction lines of the Yokohama Isogo and Mizushima plantsBolster Yokohama Isogo plant’s handling of imported oils

Restructure Yokohama Isogo PlantRealization of optimum supply structure and minimization of distribution/inventory costs

Strengthen bottle filling line capacity of Yokahama Isogo Plant and Sakai Plant

Secure cost-competitiveness through the restructuring of the production/supply structure

12

Priority Issues of Fiscal 2013 (2)

Business structure reform of ISF

Stabilization of earnings structure by securing customers and expanding specialty fats sales in Asia・Sales to Asian bases of manufacturers developing globally・Expand sales of margarines and shortenings in Southeast Asia and Asia

Bolster technological applications and the development of added value products through the operations of the Global R&D Center

Business structure reform of business in China

Fundamental review and restructure of Dalian Nisshin Oil Mills, Shanghai Nisshin Oil & Fats and The Nisshin OilliO (China) Investment Company

Construction of new business models aimed at opened technology and partnership strategies

13

Formulation of New Medium-Term Management Plan

14

GROWTH 10 At the Beginning and Current Year

Changes in the environment since the beginning of GROWTH 10 ・Trends in Chicago soybean market price and domestic soybean extraction oil volume

・Trends in overseas companies operating income

-1,000

0

1,000

2,000

3,000

4,000


Operating income (Simple aggregation, not including goodwill, of operating income of Dalian Nisshin,Shanghai Nisshin, The Nisshin OilliO [China] Investment, ISF, SNBT, T&C, and IQL)

(Millions of yen)

15

2007 2008 2009 2010 2011 2012

Thousands of tons

Source:Chicago Market Price: ReutersDomestic Soybean Extraction Oil Volume: Food Industry Promotion Section, Ministry of Agriculture, Forestry and Fisheries of Japan

Chicago Soybean Market Price (Closing Price)

Domestic Soybean Extraction Oil Volume (Annual)

GROWTH 10 and the New Medium-Term Management Plan

GROWTH 10

Complete AHEAD and realize a corporate group with net sales of

¥300 billion

Business platforms (CSR, internal controls, risk management, ICT strategy, brand strategy, affiliated companies policies, human resources polices, finance policies, earnings structure policies, investment policies, etc.)

Phase I(FY07-FY10)


New business domains (Environment business, soybean protein business)

Focused injection of management resources

Growth Businesses



Soy Foods and Materials Business

Management indicators(Net sales, ordinary income, ROA, ROE,

interest-bearing debt to operating cash flow ratio)

Set key management indicators in line with management policy

10-year Basic Management Vision for Generating New Value by Harnessing “The Natural Power of Plants”

Phase II(FY11-FY13)

Realize a stable earnings structure and secure growth


Processed Oils and Fats BusinessGrowth Businesses

Processed Oils and Fats Business



Overseas Businesses

GROWTH 10 will be concluded with Phase II and the new medium-term management plan will be commenced from FY 2014.

The new medium-term management plan encapsulates GROWTH 10 and, incorporating future predictions, shows the vision the Group should aim for and new growth strategies and structural reform strategies.

New Medium-Term Management

Plan

Oils and Meals Business in China

GROWTH 10Summary

andBusiness Structure Reform

4/20144/2007 4/20134/2011

16

17

Takeshi OotaraOfficer and General Manager

Financial Department

Summary of Financial Results for Fiscal 2012 (Year Ended March 31, 2013)

FY11 FY12Net sales

FY11 FY12Operating income

FY11 FY12Ordinary income

FY11 FY12Net income

18

Summary of Consolidated Financial Results for Fiscal 2012 (Year Ended March 31, 2013)

312,628 309,981-2,646 -0.8%

4,2275,900-1,672 -28.4%

5,395 4,4713,833 1,508-2,325 -60.7%

Note: Figures for raw materials and foreign exchange rate are based on Nisshin OilliO estimates.

(Millions of yen)

-924 -17.1%

Raw Materials Prices & Foreign Exchange Rates FY12 FY11 Change Change (%)Soybean Unit Price (USD/t) 639 571 +68 +12%

Rapeseed Unit Price (USD/t) 699 641 +58 +9%Foreign Exchange Rate (JPY/USD) 80 80 -1 -1%

500

700

900

1,100

1,300

1,500

1,700

1,900

￠/Bu

19

Soybean Market Prices (Chicago)

Source: Bloomberg

9/4 1,794.75

Apr. 2011－Mar. 2012

Apr.2012－Mar.2013

6/1 1,317.50

8/31 1,456.00

12/14 1,094.25

Average price (closing price): 1,291


Percentage increase: 17%

300

400

500

600

700

800

CAD/t

20

Rapeseed Market Prices (Winnipeg)

Source: Bloomberg

3/30 624.50

Apr. 2012－Mar. 2013

Apr. 2011－Mar. 2012

11/25 496.10

12/20 572.20

7/10 691.10

Average price (closing price): 553

Average price (closing price): 618

Percentage increase: 12%

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

4,400

MYR/t

21

Palm Oil Market Prices (Malaysia)

2/9 4,000

Jan. – Dec. 2012

Jan. – Dec. 2011

10/7 2,787

4/9 3,655

12/12 2,040


Percentage decline: 12% Average price (closing price): 2,903

Source: Bloomberg

70

75

80

85

90

95

100

105

110

115

120

125

JPY/USD

22

Foreign Exchange Rate

Apr. 2012－Mar. 2013

Apr. 2011－Mar. 2012

3/12 96.71

10/31 75.35

Average rate (closing rate): 79

Percentage change: +5%

Average rate (closing rate): 83

4/6 85.53

9/13 77.13

Source: Bloomberg

15

35

55

75

95

115

135

155

175USD/LT

23

Freight Charges per Ton for Panamax Size Vessels, From U.S. to Japan

Source: Based on TDS Maritime Intelligence data

Apr. 2012－Mar. 2013

Apr. 2011－Mar. 2012

2/2 44.109

9/18 40.441

Average change: 52

Average change: 46

10/18 58.068

4/27 55.040

Percentage decline: 12%

50.00

55.00

60.00

65.00

70.00

%

24

Changes in Value of Meal

Apr. 2012－Mar. 2013

Apr. 2011－Mar. 2012

Average value: 55

Average value: 63

8 point increase

Source: Nisshin OilliO estimates from CBT market prices (Soybean Meal, Soybean Oil)

25

Market Prices: Oils

4,100

179

219

4,800

4,600

3,600

4,200

4,300

155

3,600

3,300

2,950

3,050

2,8002,900

3,000

3,200

3,400

3,100

3,600

3,8003,700

3,8003,850

3,400

151

155

4,150

203

140

178

160157

145

148

158165.5

167.5

187.5

197.5

217.5212.5205.5

215.5218

166

209

229

249

224

219

173

153

152 153

165.5

160.5

185.5

195.5

215.5210.5

203.5

213.5216

130

150

170

190

210

230

250

270

290

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000JPY/kgJPY/eighteen litre drum

Soybean oil (eighteen litre drum) Soybean oil (bulk) Rapeseed oil (bulk)

Source: Nikkei, Inc.

26

Market Prices: Meals

Source: The Daily “Yushitokuhou”

62,000

45,000

60,000

55,00050,000

45,00043,500

47,500 48,00046,500

43,500

38,000

45,000

48,000

58,000

54,000

61,000

68.8

43,00061.5

46,500

50,500

70,000

59.7

52,000

69.2

57.1

40,000

31,000

36,000

67,000

32,000

38,000

31,300

47,500

37,000

32,00034,000

31,500

30,000

32,500 32,800

28,800

25,300

29,000

31,500

40,500

37,000

38,000

65,000

43,000

77.9

75.2

69.468.9

66.1

58.2

68.0

70.0 69.0

68.4 68.3 67.3

66.2 66.6

64.0

65.6

69.870.0

70.5

50.0

55.0

60.0

65.0

70.0

75.0

20,000

30,000

40,000

50,000

60,000

70,000

%JPY/ｔ

Soybean meal Rapeseed meal Rapeseed meal ratio

27

Consolidated Results by Business and Geographic Segments

(Millions of yen)

Consolidated 309,981 4,227 312,628 5,900 -0.8% -28.4%

Oils and Meals 209,663 3,436 203,172 3,649 +3.2% -5.8%Processed Oils and Fats 78,835 809 90,089 1,934 -12.5% -58.2%

Healthy Foods 7,148 -273 7,167 -221 -0.3% －

Fine Chemicals 12,634 399 10,811 638 +16.9% -37.5%Soy Foods and Materials 5,345 44 4,797 40 +11.4% +10.0%

Other 5,333 366 5,563 423 -4.1% -13.5%Elimination/Corporate -8,981 -556 -8,973 -564 +0% 1%

Japan 239,436 4,868 234,111 6,179 +2.3% -21.2%Asia 75,789 -648 84,107 -372 -9.9% －

Europe 2,721 11 644 49 +322.5% －

Elimination/Corporate -7,965 -4 -6,234 44 +28% 109%

Percentage of overseas sales 23.5% 24.7% -1.2%

FY12 FY11 Change

FY12 FY11 Change (%)

Net salesOperatingincome(loss)

Net salesOperatingincome(loss)

Net sales Operatingincome

28

Notes: 1. Based on data from The Nisshin OilliO Group, Ltd., Settsu Oil Mills Co., Ltd., Daito Cacao Co., Ltd., Dalian Nisshin Oil Mills, Ltd., Shanghai Nisshin Oil & Fats, Ltd., Intercontinental Specialty Fats Sdn. Bhd., T.&C. Manufacturing Company Pte.

2. Figures in parentheses indicate year-on-year percentage point changes.

Breakdown of Sales of Oils & Fats, Meals and Grains (Fiscal 2012)

Net sales Sales volume

Meals: 19% (+2)Edible oils for household

use: 21% (0)

Oils & fats for foodprocessing: 11% (0) Edible oils for

commercial use: 18% (+1)

Grains: 1% (0)

Processed oils & fats: 30% ( -3)

Edible oils for householduse: 7% (0)

Edible oils forcommercial use:

10% (+1)

Processed oils & fats: 26% (-1)

Oils & fats for foodprocessing: 8% (+1)

Meals: 47% (-1)

Grains: 2% (0)

Net sales Sales volume Net sales Sales volumeDomestic 74% 68% 70% 68%

International 26% 32% 30% 32%

FY12 FY11

Change in Major Raw Material Prices

200

300

400

500

600

700

800

25,000

35,000

45,000

55,000

65,000

75,000

85,000

$/t¥/t大豆（¥/ｔ）菜種（¥/ｔ）大豆（$/ｔ）菜種（$/ｔ）Soybean (JPY/t) Rapeseed (JPY/t) Soybean (USD/t) Rapeseed (USD/t)

29

30

Change in Unit Sales Prices

Taking Apr. – Sep. 2007 as baseline of 1.0

0.8

1.0

1.2

1.4

1.6

油脂主要商品販売単価（¥/kg）Unit price of major oils & fats products (JPY/kg)

31

Major Factors Affecting Operating Income (Year on Year)

Fiscal 2011Operating income: ¥5.90 billion

Down ¥1.65 billion

(Billions of yen)

Fiscal 2012 Operating income: ¥4.25 billion

Raw Material Costs Soybean -3.50Rapeseed -4.05Foreign Exchange +0.60

Subtotal -6.95Unit Price of Meal +6.45Sales of Oils and Fats -0.75

Total -1.25

Healthy Foods, Fine Chemicals, Soy Foodsand Materials Businesses (including subsidiaries)

Total -0.25

-0.80

+0.15

Domestic Subsidiaries (Other) -0.15

Total -0.80

Overseas Subsidiaries (Oils and Meals, ProcessedOils and Fats Businesses)Domestic Subsidiaries (Oils and Meals, ProcessedOils and Fats Businesses)

Other SG&A* +0.15Manufacturing Costs, Other +0.50

Total +0.65*Selling, General and Administrative Expenses

32

Consolidated Balance Sheet: Changes from End of Previous Fiscal Year

(Millions of yen) (Millions of yen)

Total assets Total liabilities and net assets

Current assets Total liabilitiesCash and deposits Notes and accounts payable-tradeNotes and accounts receivable-trade Interest-bearing debtInventories Accounts payable-otherShort-term loans receivable Deferred tax liabilitiesOther Other

Fixed assets Total net assetsProperty, plant and equipment Retained earningsIntangible assets Treasury stockInvestments and other assets Minority interests

Accumulated other comprehensive income

Deferred assetsCost of issuing bonds -13

-598 -2+2,102 +494

+3,47345 -13

106,574 +4,610 117,078 +3,811+3,106 -154

-2,499 +1,884+969 +240

-8,010 +7,164+3,028 -2,938

+13,363 +1,285

248,580 +11,447 248,580 +11,447141,960 +6,851 131,502 +7,635

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000


The Nisshin OilliO Group Domestic Subsidiaries Overseas Subsidiaries

33

Consolidated Interest-Bearing Debt(Millions of yen)

5,355

63,210

54,909

66,148

43,943

28,000

21,554

38,020

20,771

4,417

43,020

34,50036,000

4,105

400

19,024

9,043 6,685

51,014

33,000

4,566

13,449

51,553

8,868

34

Consolidated Cash Flows(Millions of yen)

Net cash provided by operating activitiesIncome before income taxes and minority interestsDepreciation and amortization

Income taxes paidOther

Net cash used in investing activitiesPurchase of property, plant and equipmentProceeds from the redemption of investment securitiesOther

Net cash used in financing activitiesProceeds from long-term loans payablePayment of long-term loans payableRedemption of bondsCash dividends paidOther

Change in cash and cash equivalents

-436

-7,793+2,162-2,856-5,000-1,662

Net changes in accounts receivable-trade, inventories,and notes and accounts payable-trade

-10,526

+1,369+4,520+5,893

-7,299

-685-1,059

-4,945-4,897+750-798

35

Consolidated Forecasts for Fiscal 2013

(Millions of yen)

Note: Figures for raw materials and foreign exchange rates are based on Nisshin OilliO results.

Rapeseed Unit Price (USD/t) 693 699 -6 -1%　Foreign Exchange Rate (JPY/USD) 93 80 +13 +17%

Raw Materials Prices & ForeignExchange Rates FY13 FY12 Change Change (%)

Soybean Unit Price (USD/t) 591 639 -48 -8%

+34.2%

Net income 2,700 600 1,508 1,050 +1,192 +79.0%

Ordinaryincome 6,000 2,000 4,471 2,130 +1,529

+9.7%

Operatingincome 6,700 2,300 4,227 2,533 +2,473 +58.5%

Net sales 340,000 163,000 309,981 152,141 +30,019

Year on Year1H 1H

FY13 FY12

36

Forecasts for Major Factors Affecting Operating Income (FY13 Year on Year)

Fiscal 2012 Operating income: ¥4.25 billion

Up ¥2.45 billion

(Billions of yen)

Fiscal 2013 Operating income forecast: ¥6.7 billion

Raw Material Costs Soybean +2.55Rapeseed +0.35Foreign Exchange -13.60

Subtotal -10.70Unit Price of Meal +3.20Sales of Oils and Fats +11.85

Total +4.35

Healthy Foods, Fine Chemicals, Soy Foodsand Materials Businesses (including subsidiaries)

Total +0.50

+1.80

-0.35

Domestic Subsidiaries (Other) +0.05

Total +1.50

Overseas Subsidiaries (Oils and Meals, ProcessedOils and Fats Businesses)Domestic Subsidiaries (Oils and Meals, ProcessedOils and Fats Businesses)

Other SG&A* -0.75Manufacturing Costs, Other -3.15

Total -3.90

37

Capital Expenditures, Research and Development Costs, and Depreciation and Amortization

Capital Expenditures(Millions of yen)

FY12 Results FY13 Forecast6,659 6,900

Research and Development Costs(Millions of yen)


Depreciation and Amortization(Millions of yen)


financial results presentation for fiscal 2012 year ended ... · 4 fiscal 2012 consolidated...

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