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