First Half Financial Results for the Fiscal Year Ending April 3, 219 December 218 ITO EN, LTD.
INDEX Beverage Market in Japan P.1 Results by Category (Non-Consolidated) P.2 Results of Operations (First Half Total) P.3 Forecasts FYE April 219 P.4 Oi Ocha P.5 Strengthening of the Oi Ocha P.6 Appendix Expand Distribution of ITO EN Matcha P.7 Always Putting the Customer First and Increased creation for corporate value Tea Leaf Products P.8 CSR Activities Together with Customers Barley Tea (Leaf, Drink) P.9 Related materials 1 Group synergy effects of Coffee Business P.1 Related materials 2 Vegetable Juice P.11 Healthy and enriching dietary lifestyle proposals P.12 The current state of the tea market of the world and ITO EN P.13 Overseas Business Strategy P.14 Circle of the value to get in touch with continuous growth P.15 Management Policy P.16
Beverage Market in Japan RTD Market Trends Monthly Sales Volume Trends ( billion) 4, 3, Start of the Unsweetened RTD Tea Market 198 Pioneering of Canned Oolong Tea 1985 Pioneering of Canned Green Tea Carbonated has become popular Coffee has become popular 222. 26.1 97.7 157.5 447.4 376.4 145.6 218.4 276.3 159.2 Tea has become Popular 193.8 189.8 23.5 182.6 187. 246. 228.7 238. 244.2 244. 284. 275.5 289. 258.2 267. 36. 33. 295. 317. 35. 152.2 167. 168. 147.2 14. Others/Functional Sports Drink Mineral Water Fruit Vegetable YOY(%) 1 8 ITO EN 8 6 6 5 5 5 2 1 1 2-1 Market -5 May 5 月 Jun 6 月 7 月 Jul 8 Aug 月 Sep 9 月 Oct 1 月 2, 922.3 955.1 929.3 942. 951. 942. 933. Coffee Source: ITO EN, (Chart) May to Oct 218 Topics of the Beverage Industry 1, 648.9 (796.4) 579.3 538.5 75. 72. (931.3) 484.3 (876.5) (873.) 475.5 458. 725. 725. 74. (912.) (939.) (943.5) 477. 499. 498.5 Carbonated (Tea total) Other Tea May-July In the observation history, Kanto koshin has recorded earliest end of the rainy season. Unseasonable weather continued in late June. Demand increase caused by the intense heat record in July. Serious damage caused by the heavy rain in West Japan. Total (\billion) 85.2 217.1 447. 41. 415. 435. 44. 445. 198 1985 199 1995 2 25 214 215 216 217 218 198 1985 199 1995 2 25 214 215 216 217 Forecast Est. - - 2,77.5 3,1.1 3,54.3 3,612.7 3,66. 3,678. 3,77. 3,77. 3,81. August-October Extremely hot days continued in August. Damage increased due to the weather of autumnal rain front, typhoon 21 and 24 in September. Weather was relatively blessed in October. Source: ITO EN, Calendar year 1 Green Tea
Results by Category (Non-Consolidated) First Half Total (May to October) (\ million) Breakdown of Drinks Net Sales Tea Leaves Drinks Others Japanese Tea/Healthy Tea Chinese Tea Vegetable Fruit Coffee Black Tea Functional Mineral Water Carbonated Others FYE Apr. 3, 217 Sales Composition YOY % Change FYE Apr. 3, 218 Sales Composition YOY % Change FYE Apr. 3, 219 Sales Composition YOY % Change 24,88 1.% 1.9% 28,338 1.% 1.7% 217,725 1.% 4.5% 15,246 7.4% 2.6% 16,436 7.9% 7.8% 16,92 7.8% 2.8% 188,22 91.8% 1.9% 19,18 91.2% 1.1% 199,13 91.4% 4.7% 1,611.8% -4.8% 1,793.9% 11.3% 1,81.8% 1.% 15,754 51.6% 2.9% 16,153 5.9%.4% 113,965 52.3% 7.4% 9,67 4.7% -3.% 1,76 4.8% 4.2% 9,172 4.2% -9.% 23,556 11.5%.3% 25,267 12.1% 7.3% 25,13 11.5% -1.% 5,646 2.8% -1.1% 6,313 3.% 11.8% 5,683 2.6% -1.% 21,637 1.6% 3.1% 21,185 1.2% -2.1% 21,366 9.8%.9% 2,678 1.3% -31.1% 2,72 1.% -22.6% 3,155 1.5% 52.3% 4,65 2.3% 9.4% 4,432 2.1% -3.8% 5,53 2.3% 14.% 6,8 3.3% 36.2% 5,969 2.9% -12.2% 6,51 3.% 9.1% 6,368 3.1%.2% 7,429 3.6% 16.7% 7,69 3.5% 2.4% 1,35.6% -16.6% 1,27.6% -7.5% 1,482.7% 22.7% 2
Results of Operations (First Half Total) Summary of Operations (Consolidated and Non-Consolidated) (\ million) Performances of Subsidiaries (\ million, $ thousand) Consolidated Non-Consolidated Net Sales Gross Profit Sales Composition Sales Composition YOY % Change 265,883 1.% 275,468 1.% 3.6% 126,238 47.5% 129,511 47.% 2.6% Sales Commission 44,865 16.9% 47,633 17.3% 6.2% Advertising 7,533 2.8% 7,255 2.6% -3.7% Freight 7,578 2.9% 8,246 3.% 8.8% Depreciation and Amortization Selling, General and Administrative Expenses Operating Income Ordinary Income Extraordinary Losses and Income Net Income Net Sales Gross Profit Operating Income Ordinary Income FYE Apr. 3, 218 FYE Apr. 3, 219 5,362 2.% 5,595 2.% 4.3% 111,742 42.% 116,299 42.2% 4.1% 14,496 5.5% 13,212 4.8% -8.9% 14,63 5.5% 13,819 5.% -5.4% -227 - -52 - - 9,246 3.5% 8,698 3.2% -5.9% 28,338 1.% 217,725 1.% 4.5% 98,436 47.2% 11,65 46.4% 2.7% 1,624 5.1% 9,185 4.2% -13.5% 12,261 5.9% 1,891 5.% -11.2% Upper: Net Sales Bottom: Operating Income Domestic Subsidiaries Tully's Coffee Japan Co., Ltd. Chichiyasu Company Overseas Subsidiaries US Business Other Overseas Subsidiaries Elimination of Internal Transactions Exchange rate (US$) (First Half average rate) FYE Apr. 3, 218 FYE Apr. 3, 219 YOY % Change 54,177 56,267 3.9% 3,177 3,451 8.6% 15,928 16,981 6.6% 1,655 1,875 13.3% 7,677 7,479-2.6% 26 2-2.8% 2,13 2,59 2.3% 1,419 1,392-1.9% 17,369 17,373.% 1,6 819-22.8% $156,167 $156,29.1% $9,533 $7,368-22.7% 2,76 3,217 16.5% 358 573 59.9% -16,762-19,115 - -724-817 - 111.5 111.2 Breakdown of Gross Profit Change (Non-Consolidated) +1.6 -.2 Sales Changes in Fluctuations in Sales Changes in Fluctuations in Changes Product Raw Material Changes Product Raw Material Mix,etc. Costs, etc. Mix,etc. Costs, etc. 3 (\ billion) 1 95 '17/4 '18/4 '19/4 +1.9 +4.4-1.2 -.6
Forecasts FYE April 219 Summary of Operations (Consolidated and Non-Consolidated) (\ million) Performances of Subsidiaries (\ million, $ thousand) Consolidated Non-Consolidated Sales Composition Sales Composition YOY % Change Net Sales 494,793 1.% 57,8 1.% 2.6% Gross Profit 233,983 47.3% 24,22 47.3% 2.7% Sales Commission 81,615 16.5% 84,876 16.7% 4.% Advertising 12,491 2.5% 11,59 2.3% -7.2% Freight 14,188 2.9% 14,965 2.9% 5.5% Depreciation and Amortization Selling, General and Administrative Expenses FYE Apr. 3, 218 FYE Apr. 3, 219 Est. 1,873 2.2% 11,384 2.2% 4.7% 211,939 42.8% 217,22 42.8% 2.5% Operating Income 22,43 4.5% 23, 4.5% 4.3% Ordinary Income 21,441 4.3% 22,5 4.4% 4.9% Extraordinary Losses and Income -45 - -81 - - Net Income 12,553 2.5% 14, 2.8% 11.5% Net Sales 383,212 1.% 394,3 1.% 2.9% Gross Profit 179,77 46.9% 184,524 46.8% 2.7% Operating Income 15,394 4.% 16,5 4.2% 7.2% Ordinary Income 17,142 4.5% 18,18 4.6% 6.1% Upper: Net Sales Bottom: Operating Income Domestic Subsidiaries Tully's Coffee Japan Co., Ltd. Chichiyasu Company Overseas Subsidiaries US Business Other Overseas Subsidiaries Elimination of Internal Transactions Exchange rate (US$) (average during a year) FYE Apr. 3, 218 FYE Apr. 3, 219Est. YOY % Change 14,722 18,25 3.4% 5,62 5,751 2.3% 32,589 34,48 5.8% 3,25 3,425 5.4% 14,398 14,61 1.5% 35 318 4.% 4,362 39,27-3.3% 2,619 2,797 6.8% 35,13 33,231-5.4% 2,18 1,782-11.7% $317,65 $37,696-3.1% $18,253 $16,56-9.6% 5,231 5,796 1.8% 6 1,15 68.9% -33,54-33,777 - -1,592-2,49-11.6 18. Breakdown of Gross Profit Change (Non-Consolidated) Sales Changes in Fluctuations in Sales Changes in Fluctuations in Changes Product Raw Material Changes Product Raw Material Mix,etc. Costs, etc. Mix,etc. Costs, etc. 4 (\ billon) '17/4 '18/4 '19/4Est. 19 18 +5.3-1.2 +.6 +5.2 -.7 +.3
( billion) 5 4 3 49.3 39.4 268.5 279.2 217.1 Oi Ocha Green Tea Beverage Market 447. 421. 415. 42. 45. 382. 375. 375. 383. 41. 415. 435. 44. 445. ITO EN Share 31% 28% 31% 33% 29% 29% 32% 34% 36% 37% 39% 38% 37% 35% 35% 35% 33% 33% 34% 2 9% 8% 7% 6% 5% 4% 3% Shin-Ryoku and Roasted Green Tea contributed to the growth of Oi Ocha Brand up to 1 mil.c/s (million c/s) 1 9 8 Roasted Green Tea Shin- Ryoku 1 ITO EN 2% 1% 7 Other Oi Ocha ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 '11 '12 '13 '14 '15 '16 '17 '18 Est. Source:ITO EN, Calender year % 6 '16 '17 '18Est. Consumer composition map of Oi Ocha by gender and generation Crisp-tasting double catechin Age 6 Mild flavor and aroma 58% of consumer is female and the half of them are 2's and 3's Male Tasty flavor with reduced bitterness Age 2 Launched on May 1 Shin-Ryoku Female Natural tea sweetness and refreshing aroma to relax 5
Strengthening of the Oi Ocha Rewarm and enjoy the tea with Microwavable PET Bottle Appeal to the preference of the young generation, The Rich Taste of "Matcha" The Uji Matcha brand YOMONOHARU Age 6 Beginning of new thing "happiness" 5 Male68% Female32% 4 3 2 1 1 2 The brand logo signify the "Spread of Happiness" Clinical Trial to Evaluate the Dementia Prevention Effects of Matcha Research to create health value It was confirmed that the execution function of the usual middle and old aged person improves by continuation absorption of Matcha. ITOEN Central Research Institute The improvement of the execution function was confirmed by a careful shift test. 6
Expand Distribution of "ITO EN Matcha" Started the contract cultivation of Matcha from 21 and expand to Kagoshima, Kyoto and Shizuoka prefectures. Experience and trust that accumulated from the "Development Program of Tea-growing Area" Unique 独自のクリーン加工設備 Matcha project of ITO EN Original Clean Processing Facilities Latest facilities for milling Matcha tea leaves Matcha insoluble and hard to handle ITO EN's unique processing technology of Matcha Intake the health benefit of whole tea leaf with Matcha Japanese Matcha that certified in world wide Enjoy Matcha at home easily You can enjoy the authentic Matcha anytime and anywhere Bring up ITO EN quality as a global quality standard 7
Tea Leaf Products ( billion) 35 3 25 2 15 1 5 348.2 123.6 Packaged Tea Leaf Leaf 6% 211.4 Easy-to-Use Green Tea Leaf Product Market 288.6 88.2 8% 241.6 236.8 234.3 231.4 67.3 65.1 63.4 9% 1% 61.3 11% 11% 182.1 149.3 145.8 142.5 14.8 ITO EN Share 13.2 18.3 25. 25.9 28.4 29.3 '5 '1 '15 '16 '17 '18 Source: ITO EN, Market: Calendar year ITO EN: May to Apr Est. Activity by our certified TEA TASTER employees ( billion) 35 3 25 2 15 1 5 Easy-to-Use Green Tea Leaf Product Market 13.2 27% 18.3 38% 25. 25.9 44% 46% ITO EN Share 28.4 29.3 48% 49% '5 '1 '15 '16 '17 '18 Source: ITO EN, Market: Calendar year ITO EN: May to Apr Est. Recommending "Situation Oriented Consumptions" of green tea Directly managed shop handling Single-Origin tea leaves Holding a tea seminar at Sensoji temple in Asakusa Enjoy the Ice Cold Brewed green tea easily "San-Sen-Cha-Moku" tea shop opened on 1/1 at Hankyu Umeda dept. store 8
Barley Tea(Leaf,Drink) Barley Tea Leaf Product Market RTD Barley Tea Market ( billion) 2 15 1 5 15.5 15. 15.3 16.7 15.9 15.8 Total Sales Amount of ITO EN s Barley Tea Leaf Product 16.5 ITO EN Share 43% 15.8 16. '1 '11 '12 '13 '14 '15 '16 '17 '18 Source: ITO EN, Market: Calender year ITO EN: May to Apr Est. 2. 18. 16. 14. 12. 1. 8. 6. 4. 2.. ( billion) 12 1 8 6 4 2 34.5 39.5 Sales Volume of the Healthy Mineral Barley Tea 45.5 51. 63. 71. 8. ITO EN Share 47% (million cases) 4 89.5 11. '1 '11 '12 '13 '14 '15 '16 '17 '18 Source: ITO EN, Market: Calender year ITO EN: May to Apr Est. 3 2 1 Ideal for hydration after exercise No.1 Share in "Caffeine-Free RTD Tea" Category Losing minerals and dehydrated by sweating gulp Supply minerals deliciously Mn P Na Barley powder dissolves quickly even with water or hot water. Ideal for carrying when you go out with small kids. Source: ITO EN, Jan to Dec 218 9
Group synergy effects of Coffee Business ( billion) 35 3 25 2 15 1 5 19.3 461 Tully's Coffee Japan Co., Ltd. Business Overview Net Sales 21. 513 23.8 555 26. 588 27.7 638 # of shops 3.2 671 32.5 76 (Shops) 34.4 734 '12/4 '13/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 Est. 1 75 5 25 7th memorial store opened in West region Nanba ground Kagetsu store Collaboration with Yoshimoto Kogyo 7th memorial store opened in East region ENODEN Enoshima station store Collaboration with Enoshima Electric Railroad Reinforcement of the brand of Tully's Distant Lands Trading Co. The authentic quality for heavy users For vending machines Acquire the users of young generation Vertical integration of coffee from cultivation to sales, mainly in the USA Owned plantations and fine selected factories acquired authentication of "Rain Forest Alliance" 1
Vegetable Juice 1% Vegetable Juice Market Aojiru(Green juice) drink category NO.1 ( billion) ITO EN Share 37% 9 87. 87.9 8.8 8.1 8.6 73. 71.6 59.2 61.7 22 23 24 25 26 27 28 29 3 31 32 33 34 35 36 37 38 39 4 41 42 43 44 45 46 47 48 49 5 51 52 53 54 55 56 57 58 59 6 61 62 63 64 65 66 67 68 69 7 71 72 73 74 75 76 77 78 79 8 81 82 83 84 85 86 87 88 89 9 6 Total Sales Amount of ITO EN7s Vegetable 1% Beverage 3 1 11 12 13 14 15 16 17 18 19 2 21 1234567891 '1 '11 '12 '13 '14 '15 '16 '17 '18 Source: ITO EN, Market:: Calendar year ITO EN: May to Apr. Est. Collaboration with JDA (Japan Dietetic Association) Study of the carrot most suitable for a drink of vegetables Fine selected kind of carrot "SYUI" Aojiru Products Green Tea Spring~Summer Drink Products 11% 17 Aojiru Market (5-year comparison+63%) 83% 18 billion (5-year comparison+24%) Powder Products (5-year comparison+23%) Vegetables are also from a field. (Carrot Syui and barley young leaf) Source: ITO EN Market: Calender year Improve efficiency of the agricultural business by cultivating barley young leaves when the tea cultivation is in slack season. Share the same harvesting machine for tea leaves and young barley leaves Barley Grass Sampling by a managing dietician Winter~Spring 11
Healthy and enriching dietary lifestyle proposals Measure to cholesterol Non caffeine Supply necessary nutrients FOSHU Products supporting the Japanese Red Cross Society Nutritional function food The Rooibos Tea market NO.1 brand 25th Anniversary super-long seller of FOSHU product Domestic import water ( ) NO.1 brand Market increased fivefold in last 1 years The industry's first Nata de Coco RTD Well-balanced mineral ingredient 12
The current state of the tea market of the world and ITO EN Supply &demand situation of the world Global Tea Market (Leaf & RTD) US$ MN 52,643 5,58 15,91 Green Tea Black Tea 57,2 5,98 17,151 RTD 6,321 6,224 62,374 6,48 6,745 18,244 19,241 2,327 217-222estimate +3% 64,45 67,11 7,58 21,577 7,54 7,458 23,57 74,281 7,883 24,652 78,43 8,35 26,436 82,791 8,846 28,367 87,47 9,371 3,399 31,162 33,961 35,852 36,653 37,379 38,475 4,25 41,745 43,618 45,578 47,637 Source: International Tea Euromonitor 212 213 214 215 216 217 218 219 22 221 222 Source: Euromonitor The Japanese quality to the world Oi Ocha sales country Made from Australian grown green tea Tea cultivation season is opposite from Japan. Matcha latte Matcha is used as the seasoning. 5,86 JAPAN'S FOOD EXPORT FAIR 36 countries in the world 7,279 57ha 39t Planned to start local production of tea bags in Australia 13
Overseas Business Strategy Brand strategy Establish ITO EN & Oi Ocha as a global brand Product strategy Area strategy The full line-up of the green tea(leaf tea, Tea bags, Matcha, Powdered tea,beverages) Distributing Asia and worldwide centering on North America GLOBAL RTD North America Asia Oceania USA CHN TWN KOR AUS SGP THA IDN Tea bag Drink Matcha +23% +24% +17% +15% +171% +81% GLOBAL MATCHA GLOBAL TEABAG USA/AUS/SGP/GCC/TWN CHN 14
Circle of the value to get in touch with continuous growth The ITO EN Value Creation Story:Value circle for building a competitive advantage (cyclic value chain & value creation) Product Planning and Development <Sources of competitive advantage> Goods of healthy consideration and conducive to health. Product Development apabilities (FOSHU, etc.) Voice System (in-house proposal system) A Wide Range of Products Patent and Trademark Strategies Sales and Distribution <Sources of competitive advantage> Route Sales & Operation of Retail Stores The Tea Taster System ITO EN Oi Ocha New Haiku Contest Making Japan Beautiful Through Tea Project <Value created> S Provide health value to a wide range of customers Provide beverages that cater to diverse needs Creating shared value Sales and Distribution <Value created> S Spread and pass on Japanese traditions and tea culture, and utilization in education E Provide tea culture knowledge to customers Promote environmentally-friendly lifestyles Promote environmental conservation activities Technical innovation and creation of new markets Procurement Customer first principle Still Now Search in a market chance Procurement <Sources of competitive advantage> High Capability to Procure Crude Tea High Capability to Procure Crude Tea < Creation of advantage of competition> profitability and efficiency Production and Logistics <Sources of competitive advantage> Fabless Method NS System Used Tea Leaves Recycling System Quality Control System Block Production and Logistics Systems S E S E <Value created> Sustainable agriculture and creation of jobs Environmental conservational agriculture Production and Logistics <Value created> Stability of management for production outsourcing partners Safety and peace of mind for consumers Sustainable use of resources Becoming a Global Tea Company Foundation that underpins creation of value S G Corporate governance, risk management, compliance, supply chain management, respect for human rights, human resources management, finance management 15
Management Policy Sustainable Growth 1. Strengthening of the Domestic Business Strengthen the Existing Brands Development of the New Brands Increasing Company's Share in the Beverage Market Improvement of Profitability 2. Strengthening of the International Business Double-digit Growth, Mainly in North America Maximize the Group's Synergy 3. Strengthening ROE Management Improvement of Profitability and Capital Efficiency Growth in EPS Stable return to Stockholders 4. Promotion of Sustainability Management Enhancement of Governance Further effort of CSR/CSV Issues Correspondence to ESG Medium and Long-Term Management Plan Towards a "Global Tea Company" 1. Global expansion of " " and "Oi Ocha" Brands 2. #.1 market shares both in Domestic and Global Green Tea Markets 3. Train world-class Tea Tasters Domestic: Excellent Beverage Company Challenge for New Businesses 1. Strengthen the Brand and Develop New Brands 2. Increase Customers and Improving Profitability 3. Challenge for New Businesses 6. billion FYE April 222 Plan (Consolidated) Net Sales ROE Total Return Ratio Over 1% Over 4% 16
Appendix
Always Putting the Customer First and Increased creation for corporate value Creating corporate value together with brand growth, from the time of our initial founding Japan SDGs Award (Special SDGs Award パートナーシップ賞 SDGs Partnership (217) Award ) (217) お茶で日本を美しく The Tea-Producing Region Used Tea Leaves Making Japan Beautiful 茶殻リサイクルシステム (29~) Development Project Recycling System Through Tea Project (New tea plantations business) (21~) (21~) (29~) (21~) ITO EN TEA TASTER System (1994~) Route Sales(1966~) The first ITO EN Oi Ocha New Haiku Contest (1989~) 216 Launched microwaveable product 27 Launched TULLY S COFFEE BARISTA S SPECIAL 213 Launched Healthy Rooibos Tea 1966 The Frontier Tea Corporation, ITO EN's predecessor, launched packaged green tea. In 1969, the corporate name was changed to ITO EN. 198 Launched canned oolong tea 199 Launched green tea in PET plastic bottle 1989 Launched the Oi Ocha brand 1985 Launched canned Sencha 1992 Launched Jujitsu Yasai 2 Launched heatable PET plastic bottle products 24 Launched One day Veggie 28 Acquired exclusive distributing rights for Evian mineral water in Japan 22 Launched Kenko Mineral Mugicha 212 Launched Stylee Sparkling (FOSHU certified beverage) 211 Launched Asano Yoo and Futatsunohataraki Catechin Ryokucha (FOSHU certified beverages) 29 Launched TEAS TEA brand in Japan Launched first canned coffee under the TULLY S COFFEE brand Appendix 1 6
CSR Activities Together with Customers produce a relaxation space utilizing recycled used tea leaves The 5th Hot-Town Summit 218 in Shibuya Mitsubishi Estate Co., Ltd. is currently engaged in the Tokyo Tokiwabashi 227 urban redevelopment project. In the central passageway being used provisionally as part of the project, ITOEN will produce a relaxation space utilizing various ITOEN products, including those made from recycled used tea leaves (created through joint development efforts in association with Mizuno Corporation). *Construction is scheduled to be completed on Wednesday, December 12, 218. Entered into agreement with Gifu Prefecture and Tajimi City "Corporation and Support Agreement for Heat Measure and Disaster" Tokyo Tokiwabashi 227 project (Otemachi 2-Chome Tokiwabashi District Class I Urban Area Redevelopment Project) Tokyo Tokiwabashi 227 is a large-scale combined urban redevelopment project being conducted by Mitsubishi Estate Co., Ltd. The project covers an area of 3.1 ha, the largest of its kind in the vicinity of Tokyo Station. Appendix 2
Related materials 1 (\ million) 217 218 Change Current assets 175,138 177,345 2,27 Cash and deposits 61,998 61,376-622 Accounts receivable-trade and inventories 94,793 11,918 7,125 Property, plant and equipment 84,72 84,78 78 Land 21,616 21,839 222 Leased assets 26,6 21,577-4,482 Other 37,25 41,363 4,338 Intangible fixed assets 23,16 2,426-2,734 Goodwill 17,517 15,697-1,819 Investments and other assets 21,254 23,619 2,364 Total assets 34,256 36,172 1,916 Current liabilities 77,931 79,6 1,129 Accounts payable 27,771 31,446 3,675 Short-term loans payable 2,465 2,3-435 Lease obligations 7,952 5,946-2,6 Income taxes payable 5,292 4,834-457 Non-current liabilities 82,9 78,13-3,96 Corporate bonds 1, 1, - Long-term loans payable 46,689 45,222-1,467 Lease obligations 11,56 8,661-2,898 Total liabilities 159,94 157,163-2,776 Net assets 144,315 149,8 4,693 Consolidated Balance Sheet (as of October 31, 217 and 218) Rating A+ Equity ratio Bond shelf registra \4 billion 1/217 47.1% (straight bonds) 1/218 48.2% Promoting Governance Reforms - Financial strategies with an awareness of capital costs - Reviewing and revising business portfolios - Enhancing investment risk management - Ensuring the effectiveness of the Board of Directors - Establishing executive officer systems and committees, etc. ( million) CF from Operating Activities CF from Investing Activities (%) Free CF 1.5 ROE 35, 9.8 11. 9. 9. 25, 6.8 5.9 7. 15, 27,98 28, 3,85 25,322 17,751 21,935 18,854 5. 16,5 13,962 5, 8,58 3. -5, -15, -9,242 Consolidated Cash Flows -8,15-8,243-11,359-11,5 '15/4 '16/4 '17/4 '18/4 '19/4Est. Capital Investments 3,731 8,63 8,135 11,62 11,699 Depreciation Amortization 4,568 5,23 5,418 6,179 6,89 Leased Assets Depr. 11,85 1,872 7,51 7,42 6,652 Lease obligations (Repayment) -12,143-11,236-1,361-8,616-7,81 1. -1. Appendix 3
Related materials 2 ( billion) 5 4 3 2 1 369.2 9.2 1Net Sales &Net Income Net Sales Net Income 465.5 475.8 494.7 437.7 43.5 43.9 13.6 12 12.5 11.2 8.6 7.2 57.8 ( billion) 25 2 15 14 1 5 ( billion) 4. 35. 3. 25. 2. 15. 1. 5. 2Overseas Business sales ratio US Business Asia/Australia Business Overseas Business sales ratio 8.2% 7.8% 7.3% 2.% 2.3% 2.9% 3.5% 7.7% 9% 8% 7% 6% 5% 4% 3% 2% 1% ( billion) 14 3Capital investments & Depr.&Amort Capital Investments Depr.&Amort. Leased Assets Depr. 12 1.9 11. 1.8 9.8 1 6.8 7.2 8 7. 7. 6.6 6.1 5.2 5.4 6 11. 11.6 3.6 3.9 4.2 4.5 4 8.6 8.1 6.6 5.6 4.8 2 3.7 '12/4 '13/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 Est.. '11/4 '12/4 '13/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 Est. % '12/4 '13/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 Est. Chushi koku 7% 4Sales composition by area Hokkaido 4% Kansai 14% Chubu 11% Kanto 5% 5Sales composition by Packaging Tohoku 6% Others 1% Kyusyu 8% Cartons Cans 12% 1% PET (small) 43% PET (large) 34% 6Sales composition by Channels Others 25% Super markets 34% Vending Machine 14% Convini ence Stores 27% 4 5 6 at 218/1 Appendix 4
The purpose of the materials you have received is to provide the means for a more thorough understanding of ITO EN and should not necessarily be regarded as a recommendation to invest. Furthermore, the data in these materials is based on what we believe is the most accurate information. However, please understand that even without advance notice, both past data and future forecasts may be revised.