May 14, 2019

Takashige Negishi

President and Representative Director

Yakult Honsha Co., Ltd.

Results for the fiscal year

ended March 31, 2019

Future management outlook

Results for the fiscal

year ended March 31,

2019

(exchange-rate effects)

Year-on-yearCompared to forecast

(announced Nov. 9)

Net Sales407.0

｛(5.2)｝101.4% 97.4%

Operating profit45.8

｛(1.0)｝105.5% 95.5%

Ordinary profit57.1

｛(1.3)｝107.7% 97.6%

Profit attributable to

owners of parent

34.9

｛(0.8)｝102.6% 89.6%

(Figure 1)

(billion yen)

Exchange-rate effects are year-on-year values

Profit and loss results

Full-year forecast for the fiscal

year ended March 31, 2020Year-on-year

Net Sales 420.0 103.2%

Operating profit 48.5 105.8%

Ordinary profit 59.5 104.2%

Profit attributable to owners

of parent 36.5 104.5%

Basic earnings per Share 227.80 yen 104.5%

(Figure 2)

(billion yen)

Full-year forecast

Pursuing new measures with the start of the new Reiwa imperial era

January 2019 Started selling Yakult in Denmark

Around August 2019 Start manufacture & sale of Yakult in Myanmar

Launch highly functional, high unit price products

April 2020 Bring head office organization & affiliates together,

relocating to Takeshiba

(Figure 3)

International business: Enter markets in new countries

Domestic food and beverage business: Release major new products

Office relocation: More efficient operations & smooth business

development

378.3401.5 407.0

420.0454.03,737

3,951 4,067 4,350

0.0

100.0

200.0

300.0

400.0

500.0

600.0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

37.2

43.445.8

48.5

57.0

0.0

20.0

40.0

60.0

80.0

100.0

39.5139.51

Progress of Yakult Vision 2020 Phase III Plan

Sales volume/values required to meet targets for FYE March 2021

No. of bottles sold: +2.83 million/day; Net sales: +47.0 billion yen; Operating profit: +11.2 billion yen

Net sales

(billion yen)

Operating profit

(billion yen)

No. of bottles sold

(million bottles/day)

Net sales

(billion yen)Operating income

(billion yen)

FYE March

2017

(Results)

FYE March

2018

(Results)

FYE March

2019

(Results)

FYE March

2021

(Yakult Vision 2020)

(Figure 4)

FYE March

2020

(Plan)

37.37

40.67

43.50

36.142.0

47.5 50.0 46.0

0.0

20.0

40.0

60.0

80.0

100.0

146.4

168.3178.3

192.0 190.02,800

2,982 3,113 3,300

0.0

50.0

100.0

150.0

200.0

250.0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

(Figure 5)

International business: Yakult Vision 2020 Phase III Plan

Create new customers with a focus on the

Asia & Oceania region

China and Indonesia to drive medium- to

long-term growth

Aim for sustained long-term growth,

developing relatively new Yakult markets

as growth drivers: e.g., Vietnam, India, and

the US

Enter markets in Denmark (achieved)

& Myanmar (planned)

FYE March 2017

FYE March 2018

FYE March 2019

FYE March 2020

FYE March 2021

Bottle sales

(millions of

bottles/day)

Asia &

Oceania21.64 23.39 24.67 -

33.00The Americas 5.75 5.78 5.82 -

Europe 0.61 0.63 0.63 -

Net sales(billion yen)

Asia &

Oceania93.3 109.8 120.7 132.6

190.0The Americas 45.2 50.1 48.9 50.4

Europe 7.8 8.3 8.6 9.0

Operating

profit(billion yen)

Asia &

Oceania25.3 30.0 35.1 37.3

46.0The Americas 10.3 11.2 11.8 12.2

Europe 0.4 0.6 0.5 0.5

Net sales

(billion yen)

Operating profit

(billion yen)

No. of bottles sold

(million/day)Net sales

(billion yen)

Operating

profit

(billion yen)

FYE March

2017

(Results)

FYE March

2018

(Results)

FYE March

2019

(Results)

FYE March

2021

Expand business at existing bases

and enter markets in new countries

Basic policy

Attractive, long-term growth potential

FYE March

2020

(Plan) (Yakult Vision 2020)

28.0029.82

31.1333.00

(Figure 6)

International business: Bottle sales by country

CountryMarketing

population(1,000s)

Jan.-Dec.

2018 Bottle

Sales(Bottles/day)

YoY (%)

Population

ratio (%)Country

Marketing

population(1,000s)

Jan.-Dec.

2018 Bottle

Sales(Bottles/day)

YoY (%)

Population

ratio (%)

Hong Kong 7,980 541,577 102.6 6.79 Brazil 101,290 1,658,114 91.2 1.64

Singapore 5,610 227,950 99.4 4.06 Mexico 94,701 3,819,640 103.9 4.03

Indonesia 200,000 5,830,915 110.1 2.92 United States 218,050 342,327 117.2 0.16

Australia 24,000 245,419 100.2 1.02 Americas total 414,041 5,820,081 100.6 1.41

Malaysia 24,000 345,008 104.5 1.44 The Netherlands 17,187 170,389 98.3 0.99

Vietnam 64,200 376,766 136.8 0.59 Belgium 32,895 77,209 101.5 0.23

India 128,000 216,608 116.6 0.17 United Kingdom 70,441 198,801 100.2 0.28

Middle East 18,790 16,389 147.6 0.09 Germany 81,300 80,057 99.3 0.10

Guangzhou 84,490 2,856,499 107.4 3.38 Austria 8,747 11,961 101.4 0.14

Shanghai 24,000 617,095 94.9 2.57 Italy 61,010 97,770 102.9 0.16

Beijing 29,866 424,906 102.8 1.42 Europe total 271,580 636,187 100.1 0.23

China 579,882 3,627,586 110.6 0.63(Consolidated

total)1,876,439 21,782,986 106.1 1.16

China total 718,238 7,526,086 107,5 1.05 Taiwan 22,850 731,055 97.3 3.20

Consolidated

Asia & Oceania

total

1,190,818 15,326,718 108.7 1.29Thailand 66,190 2,291,588 103.7 3.46

South Korea 51,500 3,239,282 90.6 6.29

The Philippines 91,400 3,087,746 111.8 3.38

(Equity method

total)231,940 9,349,671 100.6 4.03

Total 2,108,379 31,132,657 104.4 1.48

59.8 62.9 62.6 62.8 63.2 63.1

8.8 7.8 7.7 7.1 6.8 6.6

13.4 12.3 12.4 12.7 13.2 13.2

8.0 6.4 5.9 5.7 5.2 6.2

6.4 6.9 7.2 6.8 7.6 7.1 3.6 3.7 4.2 4.9 4.0 3.8

0

20

40

60

80

100

Production network (million bottles/day)

(Figure 7)

International business: Current initiatives (China)

Plant name

No. of

bottles

produced

YakultYakult

Light

Guangzhou No. 1 Plant 1.6 1.6 0

Guangzhou No. 2 Plant 2.0 1.6 0.4

Shanghai Plant 1.7 1.7 0

Tianjin Plant 3.5 2.7 0.8

Wuxi Plant 2.2 1.4 0.8

Foshan Plant (March) 1.6 0.4 1.2

Wuxi Plant 2nd plant

building (June)1.6 1.6 0

Total 14.2 11.0 3.2

• Dairy beverages stored at room

temperature are sold in addition to chilled

products, leading to market confusion

• The probiotics market grew

• Yakult’s share in regions where it has a

presence surpassed 60%

Marketing population

(End of June 2019)

Branches starting sales in June 2019:

• Lanzhou Branch (Gansu Province)

• Shaoxing Branch (Zhejiang Province)

• Nantong Branch (Jiangsu Province)

Marketing pop. at end of June 2019

732.15

million

Chilled fermented milk drinks: market shares

Marketing

population

Marketing pop. at end of Dec. 2018 718.24 million

13.91 million increase

Oct.

2018Nov.

2018

Dec.

2018Jan.

2019

Feb.

2019

Mar.

2019

(%)Yakult A B C D Other companies

268 294 281

372

606

0

200

400

600

(Figure 8)

International business: Current initiatives (Vietnam)

Vietnam’s population pyramid Performance over past 5 years

Source: General Statistics Office of Vietnam, The 1/4/2015 Time-Point Population

Change and Family Planning Survey

179 195 215

275

377

0

100

200

300

400

FY2014 FY2015 FY2016 FY2017 FY2018

No. of bottles sold

(thousand bottles/day)

8,745 10,485

11,826

14,752

23,275

0

10,000

20,000

No. of Yakult Ladies

End 2014 End 2015 End 2016 End 2017 End 2018

No. of stores

800 600 400 200 0 200 400 600 800

0～9

10～19

20～29

30～39

40～49

50～59

60～69

70～79

80～ (million people)

男性 女性

Age 1,000/day

People

Stores

Home delivery and store sales

End 2014 End 2015 End 2016 End 2017 End 2018

-

--

-

-

-

--

-

Men Women

8 6 6 844 2 2

2.8 1.3

(1.8) (1.4)

2.0

(5.0)

(2.0)

1.0

4.0

7.0

10.0

13.0

27.825.6

21.6

17.5

29.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Pharmaceutical business: Yakult Vision 2020 Phase III Plan

(Figure 9)

Establish a solid position in the oncology

field

Net sales

(billion

yen )

FYE March

2017

(Results)

FYE March

2018

(Results)

FYE March

2019

(Results)

FYE March

2021

Basic policy

Maintain sales of existing products

Introduce new anticancer drugs, pursue joint

development

Continue to launch new generic drugs

Form sales collaborations for products

developed by other companies

Promote in-house discovery & development

of new drug candidates

Net sales (billion yen) Operating profit (billion yen)

Operating

profit

(billion yen)

FYE March

2020

(Plan)

FYE

March

2017

FYE

March

2018

FYE

March

2019

FYE

March

2020

FYE

March

2021

Net

Sa

les

(bil

lio

n y

en

)

Campto 1.3 1.1 1.0 0.9 -

Elplat 18.4 16.1 13.0 10.4 -

Gemcitabine 3.0 2.9 2.5 2.2 -

Other

pharmaceuticals 5.0 5.3 5.0 4.0 -

Total 27.8 25.6 21.6 17.5 29.0

(Yakult Vision 2020)

(Figure 10)

Sales of Elplat and replacement rate

New drug pipeline

(1) Resminostat (phase I and II clinical trials)

(2) YHI-1501 (phase I clinical trials)

(3) ThermoDox (phase III clinical trials)

(4) Duvelisib (start of clinical trials planned)

New generic drugs

Expand lineup of generic drugs in the

oncology field

Launched on June 2019:

• Capecitabine Tablets[Yakult]

300mg

• Gefitinib Tablets[Yakult] 250 mg

Pharmaceutical business: Current initiatives

0.04.4

21.3

33.5

42.8

49.2

0.0

20.0

40.0

60.0

0

5

10

15

20

25

30

End Mar.2014

End Mar.2015

End Mar.2016

End Mar.2017

End Mar.2018

End Mar.2019

Sales Replacement rate

Sales

(billion

yen)(%)

Expand market share for existing products

by specializing in oncology and related fields

Promote activities by MRs to provide information

on the latest treatments and proper use in

accordance with the guidelines on information

provision relating to sale of ethical drugs

Aim to launch new products

specific to oncology and related fields

FYE

March

2017

FYE

March

2018

FYE

March

2019

FYE

March

2020

FYE

March

2021

New Yakult 3.73 4.04 4.04 4.10 -

Yakult 400 3.47 3.55 3.46 3.53 -Other Yakult

products0.22 0.19 0.15 0.17 -

Yakult products

total7.43 7.79 7.66 7.80 -

Joie 0.86 0.85 0.78 0.79 -

Mil-Mil 0.39 0.39 0.46 0.47 -

Sofuhl 0.47 0.46 0.46 0.48 -

Fermented milk

products total1.73 1.71 1.70 1.76 -

Others 0.19 0.18 0.17 0.16 -

Total 9.36 9.69 9.54 9.73 10.50

Domestic food and beverage business: Yakult Vision 2020 Phase III Plan

Release highly functional, high unit price products

FYE March

2017

(Results)

FYE March

2018

(Results)

FYE March

2019

(Results)

Basic policy

Enhance brand value:

“3 arrows of Yakult advertisements”

Yakult Five

(Launched in March 2019)

Yakult 400

Yakult 400LT

New Yakult

New Yakult

Calorie Half

Sofuhl Joie Mil-Mil

Increase no. of bottles sold for existing products

Synbiotics Yakult W

Mainichi Nomu Yakult

(Figure 11)

(1) Product/brand capabilities

(2) R&D/technological capabilities

(3) Organizational/sales capabilities

FYE March

2020

(Plan) (Yakult Vision 2020)

204.1 210.0 214.9 211.2234.0936

969 954 973

1,050

0.0

100.0

200.0

300.0

300

400

500

600

700

800

900

1,000

13.817.0 16.4 17.7

25.0

0.0

20.0

40.0

60.0

9.73

Net sales

(billion yen)

FYE March

2021

Net sales

(billion yen)

Operating profit

(billion yen)No. of bottles sold

(million/day) Operating

profit

(billion yen)

9.369.69 9.54

10.50

Bo

ttle

Sa

les

(m

illio

ns/d

ay)

Domestic food and beverage business: New product for release

Yakult concentrated its R&D and technological capabilities to realize 100 billion Lactobacillus casei

strain Shirota in each bottle. The resulting fermented milk drink has the highest concentration and

number of probiotic bacteria of any product in Yakult’s history

(Figure 12)

Yakult 1000

Yakult’s first product labelled as a “Food with Function Claims”

・ Relieves stress in situations that cause temporary mental stress

・ Improves sleep quality in terms of sleeping deeply and waking up refreshed

・ Effective in improving the gut environment

Note: Prices, sales regions, and sales channels to be decided

Domestic food and beverage business: Current initiatives (advertising)

Reinforced the Yakult brand’s messaging by consistently deploying the tagline

“Strong Probiotics for a Strong Body”

Promote brand invigoration focused on the Yakult brand

Support for Yakult Ladies

・Boosting the image of the Yakult Lady by emphasizing good working conditions, particularly the benefits of Yakult’s childcare facilities and the customer base-

growing effects of Yakult Delivery Net

(Figure 13)

(Figure 14)

“Courtesy Visit Activities” by Yakult Ladies

(FY2017 results)

• Partnered with 131 local govts.

• Approx. 3,000 Yakult Ladies visited approx. 40,000 senior

citizens living alone

Community safety watch and crime prevention activities

(FY2018 results)

• 26,000 Yakult Ladies cooperated with over 800 local

governments, police and fire service units, etc.

Dispatching guest lecturers & health-related lectures

(FY2018 results)

• Approx. 660,000 participants; approx. 16,500 events held

Domestic food and beverage business: Current initiatives (home delivery)

・Extend educational offerings

Making use of a variety of means to raise awareness

of Yakult Delivery Net as a communication tool for

creating new customers

Create a more productive home delivery system Online ordering for home delivery

Community-based activities

・Enhance employee benefits

• Enhance welfare provision

for Yakult Ladies

(set up health line, caregiving

& financial planning advisory

services, etc.)

・Improve work setup

Online payment

system

Leased mini-vans

for deliveryMobile devices

• Boost communication skills

& impart knowledge

• Share success stories &

nurture sense of

togetherness

(Figure 15)

・Concept

Recommended for people concerned

about calories and sweetness

Less sweet than regular New Yakult,

with 50% of the sugar and calories; a

zero-fat Yakult with a refreshing taste

Contains 20 billion Lactobacillus casei

strain Shirota in each 65 ml bottle

Domestic food and beverage business: Current initiatives (stores)

New Yakult Calorie Half Promotional activities

Samples offered in-store by staff

Nationwide caravan sampling campaign

A promising channel: drugstores

• More drugstores are stocking food in

addition to medicine

• Yakult is forging a win-win relationship with

drugstores, including offering proposals for

the creation of selling spaces

In conclusion

(Figure 16）

Raise corporate value

Improve

corporate

performance

Forge

sustainable

societies

Statements contained in these materials with respect to Yakult’s plans, forecasts and other statements that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ substantially from expectations.

The information contained in these materials is not intended as a solicitation for investment. Furthermore, Yakult does not guarantee the accuracy of the contents of these materials. Yakult and the provider of these materials disclaim any responsibility for any loss or damage that should arise from the use of this information.

CAUTIONARY STATEMENT