kikkoman info201203 e

Kikkoman Corporation Business Performance Presentation for the

Year Ended March 31, 2012

Presentation Material

April 27, 2012

・The information in this presentation is based on Kikkoman's best knowledge at the time it was prepared.

・This presentation does not constitute a promise or guarantee that the p p gcompany will achieve its numerical targets or necessarily implement the strategies outlined.

1

Overview of Medium-Term Management Plan from Fiscal 2013 to Fiscal 2015

Mitsuo Someya

Today’s AgendaToday’s Agenda

President and CEO

Performance in Fiscal 2012 and

Forecast for Fiscal 2013Koichi Yamazaki

Director, Executive Corporate Officer and CFO

2

Overview of Medium-Term fManagement Plan

from Fiscal 2013 to Fiscal 2015

Mitsuo SomeyaMitsuo Someya

President and CEO

Consolidated Targets for Fiscal 2015

Global Vision 2020

Topics for This PresentationTopics for This Presentation

Key Management Issues and Measures in the Medium-Term Management Plan

• Overseas, Japan

Financial Strategygy

Fulfilling Our Social Responsibilities

4

Consolidated Targets for Fiscal 2015Consolidated Targets for Fiscal 2015

283.2 320.0

200

250

300

350

on）

23 0 30

40

50

on）

Targets for Fiscal 2015O ti

Actual Results for Fiscal 2012

0

50

100

150

（bi

llio

17.8 23.0

0

10

20

（bi

llio

ROAROA

Operating Income Ratio

7.2%

7.0%

6.3%

(¥/US$) 78.00(¥/EUR) 100.00

ExchangeRateRate

4.8%

(¥/US$) 79.30(¥/EUR) 110.17

5

150.0 133.0

18.4

200

250

300

350

(Reference) Background to the Previous Revision of Targets(Reference) Background to the Previous Revision of Targets

15.6

1.2 2.1

20

25

30 320.0320.0 291.0291.02.62.6

1.91.9

NetNetSalesSales

(Unit: billions of yen)

OperatingOperatingIncomeIncome

172.0 160.0

(2.0) (2.0)

-50

0

50

100

150

Current Medium-Term Management Plan for Fiscal 2013

Forecasts for Fiscal 2013

9.2 6.0

13.2

(0.2)

(5)

0

5

10

15

Current Medium-Term Management Plan for Fiscal 2013

Forecasts for Fiscal 2013

IncomeIncome

6

50

Japan Overseas Head Office and Other Translation difference(5)

Japan OverseasHead Office and Other Translation difference

JapanJapan：： Stagnation in prospective growth fields JapanJapan：： Sales target shortfalls + increased rawmaterial costs, pension costs, etc.

* Exchange Rate AssumptionsCurrent medium-term management plan: ¥90/US$, ¥125/EUR New medium-term management plan : ¥78/US$, ¥100/EUR

OverseasOverseas：： Performances excluding foreign exchange impacts were on target OverseasOverseas：： The strong yen continued to weigh

on earnings in the wholesaling business

Goals

Make Kikkoman soy sauce a truly global seasoning

Be a company that supports healthy lifestyles through food

Be a company whose existence is meaningful to the global society

Global Vision 2020Global Vision 2020

Basic Strategy Organization / StructureGlobal Soy Sauce Strategy

Del Monte Business Strategy

Soy Milk Business Strategy

Global HR Strategy

Global Financial Strategy

Global R&D Strategy

Global Strategy for Oriental Food Wholesale

Health-Related Business Strategy

Sources of corporate valueOverseas soy sauce

business modelGlobal network R&D and technological

capabilities Brand StrengthCorporate Social

Responsibility

7

Global Vision 2020 Development Globally, and by Business SegmentGlobal Vision 2020 Development Globally, and by Business Segment

Global Soy Sauce Strategy

Global Strategy for Oriental Food Wholesale

Del Monte Business Strategy

HR strategyGlobal Financial Strategy

gy

Health-Related Business Strategy

Soy Milk Business Strategy

8

Global Financial StrategyR&D Strategy

Key Management Issues in the Medium-Term Management PlanKey Management Issues in the Medium-Term Management Plan

Overseas: Maintain growth

Japan: Increase earnings powerp g p

9

Medium-Term Targets by SegmentMedium-Term Targets by Segment

Fiscal2015

Target

Fiscal2012

Actual

Comparison

Change Increase/Decrease

Change excluding

translationdifference

Japan Total Net Sales 170.3 157.0 13.3 13.3Operating Income 8.0 5.3 2.7 2.7

Foods-Manufacturing and sales Net Sales 160.1 147.9 12.2 12.2


Operating Income 6.3 3.6 2.7 2.7Others Net Sales 22.0 20.5 1.5 1.5

Operating Income 1.7 1.7 0.0 0.0

Overseas Total Net Sales 152.5 128.3 24.2 27.6

Operating Income 15.4 12.2 3.2 3.6North America Net Sales 109.9 96.6 13.3 15.3

Operating Income 9.5 8.1 1.4 1.6Europe Net Sales 16.5 13.0 3.5 4.6

Operating Income 2.4 1.8 0.6 0.7Asia & Oceania Net Sales 20.2 15.8 4.4 4.8

10

Operating Income 2.1 1.4 0.7 0.8Eliminations and Corporate Net Sales (2.8) (2.1) (0.7) (0.7)

Operating Income (0.4) 0.3 (0.7) (0.7)

Consolidated Total Net Sales 320.0 283.2 36.8 40.5Operating Income 23.0 17.8 5.2 5.6

*Exchange Rate ¥ 78.00/US$ ¥ 79.30/US$¥100.00/EUR ¥110.17/EUR

Europe Asia & Oceania North America

Overseas Soy Sauce Business: Grow MoreOverseas Soy Sauce Business: Grow More

25

30

Maintain double-digit growth

25

30

Accelerate growth

24.4

27.3

25

30

Maintain stable growth

6.1 8.0

10

15

20

3 74.7

10

15

20

5

10

15

20Net SalesNet Sales

(billions of yen)(billions of yen)Net SalesNet Sales

(billions of yen)(billions of yen)Net SalesNet Sales

(billions of yen)(billions of yen)

11

0

5

Fiscal 2012 Fiscal 2015

3.7 .7

0

5


5


*Exchange Rate Fiscal 2012 ¥ 79.30/US$ ¥ 110.17/EURFiscal 2015 ¥ 78.00/US$ ¥ 100.00/EUR

North America

Conduct new product development for brand expansion and enhancing

i titi

North American Soy Sauce Business：Maintain Stable GrowthNorth American Soy Sauce Business：Maintain Stable Growth

non-price competitiveness

Develop new recipes and new markets for soy sauce, mainly in collaboration with the Culinary Institute of America (CIA)

M i i h b d l i

CIA San Antonio Campus

Maintain growth by developing new customers while cultivating the existing customer base further

12

Europe

Promote the “+K” concept for furthering brand penetration

Europe Soy Sauce Business：Maintain Double-Digit GrowthEurope Soy Sauce Business：Maintain Double-Digit Growth

furthering brand penetration

Cultivate markets in Russia and central and eastern Europe further

Maintain double-digit growth th h th lti ti f

The NetherlandsPlant

The NetherlandsPlant

through the cultivation of existing markets and area expansion

13

Main Sales Bases

Asia & Oceania Philippines

・Small-volume containers

・In-store product sampling

Asia & Oceania Soy Sauce Business：Accelerate GrowthAsia & Oceania Soy Sauce Business：Accelerate Growth

ThailandIntroduce high-quality variants of seasonings used in local cuisines to penetrate the household market

Si

Thailand, Vietnam

Philippines

SingaporeBrand Penetration and Volume Growth・・ Approach convenience store chains・・ Focus on the foodservice-use sector

14

Singapore, Indonesia

ChinaPopulation1.3 billion

China and Newly Developed MarketsChina and Newly Developed Markets

IndiaPopulation1.2 billion

BrazilPopulation0.2 billion

15

⇒1 billionpeople

⇒0.1 billionpeople

Oriental Foods Wholesale Business: Develop Bases Further and Maintain High GrowthOriental Foods Wholesale Business: Develop Bases Further and Maintain High Growth

Current Bases


87.6 104.5

40

60

80

100

120

5 23

4

5

6

7

8

9

10(Unit: billions of yen)

16

0

20

2011 2014

4.1 5.2

0

1

2

2011 2014

*Exchange Rate Fiscal 2012 ¥ 79.30/US$ ¥ 110.17/EURFiscal 2015 ¥ 78.00/US$ ¥ 100.00/EUR

Japan：Increase Earnings PowerJapan：Increase Earnings Power

1. Shift to High-Profit Businesses and Products1. Shift to High-Profit Businesses and Products

2. Strengthen the Profit Structure2. Strengthen the Profit Structure

10.0%180170.3

157 0

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

020406080

100120140160180 157.0

Operating Income Ratio 3.4%

Operating Income Ratio 4.7%

17

Fiscal2012 Fiscal2015

Soy Sauce Food ProductsBeverages Sake and WineOthers Operating Income Ratio

Net sales(billions of yen)

Operating Income Ratio

Soy Soy SauceSauce：：Accelerate the shift to premium soy saucesFood ProductsFood Products：：Induce growth and strengthen profitability in the

category of handy seasoning mixes for easy-to-prepare dishes

G h ilk b i d d D l M b


1. Shift to High-Profit Businesses and Products1. Shift to High-Profit Businesses and Products

OthersOthers：：Grow the biochemical and chemical products business

ss：：Grow the soy milk business and expand Del Monte beverages

Sake Sake and Wineand Wine：：Accelerate the shift to quality-oriented wines

18

S lS l S l R fS l R f B kB k Offi S iOffi S i


2. Strengthen the Profit Structure2. Strengthen the Profit Structure

Structural Structural Improvement of Improvement of Kikkoman Food Kikkoman Food Products CompanyProducts Company

•• Variable costsVariable costs

Structural Reform Structural Reform of Nippon Del Monte of Nippon Del Monte CorporationCorporation

• Toward the

BackBack--Office Sections Office Sections of the Groupof the Group

••Headcount Headcount

Increase Earnings Power

19

•• Distribution costsDistribution costs•• Labor costsLabor costs

realization of results

reduction through reduction through systems integration systems integration and other meansand other means

Profit increase attributable to growthProfit increase attributable to growthAccelerate the shift to premium soy sauces Accelerate the shift to premium soy sauces Induce growth and strengthen profitability in the categoryInduce growth and strengthen profitability in the category

of handy seasoning mixes for easyof handy seasoning mixes for easy--toto--prepare dishesprepare dishesGrow the soy milk business and expand Del Monte beveragesGrow the soy milk business and expand Del Monte beveragesFactors Factors

Japan：Increase Earnings Power [Factors behind change in profit ]Japan：Increase Earnings Power [Factors behind change in profit ]

Accelerate the shift to qualityAccelerate the shift to quality--oriented winesoriented winesGrow the biochemical and chemical products businessGrow the biochemical and chemical products business

Profit increase attributable to business measuresProfit increase attributable to business measuresStructural Improvement of Kikkoman Food Products CompanyStructural Improvement of Kikkoman Food Products CompanyStructural Reform of Nippon Del Monte CorporationStructural Reform of Nippon Del Monte CorporationIntegration of backIntegration of back--office operations within the Groupoffice operations within the Group

improving improving profitabilityprofitability

FactorsFactors

20

Raw material cost impact: Soybeans, wheat, fuel oilRaw material cost impact: Soybeans, wheat, fuel oilEnhanced advertising and promotion, etc. Enhanced advertising and promotion, etc.

(Positive management)(Positive management)p f yp f y

Factors Factors weighing weighing

on on profitabilityprofitability

Cash flows from Cash flows from operating activitiesoperating activities

Financial StrategyFinancial Strategy

Investments for the Future and Returns to Shareholders

Approx. ¥70 billionFiscal 2013 ～ 2015

Capital Investment Returns to Shareholders

Cash flows

Fiscal 2013 ～ 2015

Capital Investment Returns to Shareholders

■ Investment in growth fields (soy milk, handy seasoning mixes for easy-to-prepare dishes, etc.)

Approx. ¥37 billionFiscal 2013 ～ 2015

■Consolidated payout ratio of at least 30%

■Flexible share buybacks

21

Capital Composition

■ ¥100 billi ili i b i d b

Enhanced Financial Soundness

Financial StrategyFinancial Strategy

Asset Reduction

■ Reduction of inventory and accounts

■ ¥100 billion ceiling on interest-bearing debt■ Debt-to-equity ratio of around 50%

(Both under normal circumstances)

Fiscal 2012 4.8%

ROAROA

receivable-trade■ Improvement of capital investment efficiency■ Reduction of assets-other

22

Fiscal 2015 7.0%

Environmental policies• Strive for corporate activities in harmony with the natural

environment • Endeavor to protect the Earth’s environment and build a

li i t d i t

Fulfilling Our Social Responsibilities :For Perpetual Corporate GrowthFulfilling Our Social Responsibilities :For Perpetual Corporate Growth

recycling-oriented society

Nutrition Education Activities• Fulfill our responsibilities as a food-related company• Implement various programs based on dietetic systems

Kikkoman General Hospital

23

ikkoman Gene al ospital• Enhance clinical functions as a core regional hospital• Begin clinical examinations from August 2012

f i i l d

Koichi Yamazaki

Performance in Fiscal 2012 and Forecast for Fiscal 2013

Koichi YamazakiDirector, Executive Corporate Officer and CFO

Topics for This PresentationTopics for This Presentation

Performance in Fiscal 2012

Forecast for Fiscal 2013Forecast for Fiscal 2013

25

Fiscal 2012Actual

Fiscal 2012Forecast

ChangeIncrease /Decrease

％

Net Sales 283.2 280.0 3.2 101.2

Performance in Fiscal 2012 Consolidated (Compared with the previously announced forecast revision)Performance in Fiscal 2012 Consolidated (Compared with the previously announced forecast revision)

Revision announced February 3, 2012(Unit: billions of yen)

　Japan 157.0 155.5 1.5 101.0

　Overseas 128.3 126.7 1.6 101.3

Operating Income 17.8 17.2 0.6 103.3

　Japan 5.3 5.0 0.3 106.1

　Overseas 12.2 12.1 0.1 100.8

Ordinary income 15.2 14.6 0.6 104.45. .6 0.6 0 .Income before incometaxes and minorityinterests

15.4 14.6 0.8 105.7

Net Income 9.0 8.6 0.4 104.5Exchange Rate(\/US$) 79.3 78.2 1.1

(\/EUR) 110.2 108.0 2.2

26

Breakdown of change

Fiscal 2012Actual

Fiscal 2011Actual


％TranslationDifference

Impact ofDisaster

The Effectof

StructuralReforms

ActualDifference ％


Performance in Fiscal 2012 Consolidated (Compared with Fiscal 2011)Performance in Fiscal 2012 Consolidated (Compared with Fiscal 2011)

Net Sales 283.2 283.5 (0.2) 99.9 (8.2) 1.1 (5.5) 12.4 104.5

　Japan 157.0 159.5 (2.5) 98.4 1.1 (5.5) 1.9 101.2

　Overseas 128.3 126.0 2.3 101.9 (8.2) 10.5 108.4

Operating Income 17.8 19.2 (1.4) 92.5 (0.9) (0.2) (0.4) 98.1

　Japan 5.3 7.2 (1.9) 74.0 (0.2) (1.7) 76.8

　Overseas 12.2 11.9 0.3 102.7 (0.8) 1.1 109.5

Ordinary income 15 2 16 8 (1 5) 91 0 (0 8) 0 1 (0 8) 95 2

27

Ordinary income 15.2 16.8 (1.5) 91.0 (0.8) 0.1 (0.8) 95.2Income before incometaxes and minorityinterests

15.4 13.4 2.0 114.8 (0.8) 1.7 1.0 107.5

Net Income 9.0 7.8 1.2 115.6 (0.5) 1.2 0.6 107.3Exchange Rate(\ /US$) 79.3 85.8 (6.5)

(\/EUR) 110.2 113.6 (3.4)

Performance in Fiscal 2012Performance in Fiscal 2012Net Sales(Compared with Fiscal 2011) (Unit: billions of yen)

Breakdown of change

Fiscal 2012 Fiscal 2011Change

Increase /Decrease


Impact ofDisaster

The Effect ofStructural

Reforms


Japan Soy Sauce 46.4 47.2 (0.8) 98.4 0.3 (1.0) 97.8Food Products 56.4 56.3 0.0 100.0 0.5 (0.7) 0.2 100.3Beverages 33.0 34.4 (1.4) 95.8 0.2 (4.0) 2.3 107.6g 33.0 34.4 (1.4) 95.8 0.2 (4.0) 2.3 107.6Sake and Wine 12.3 12.7 (0.4) 96.8 0.2 (0.9) 0.3 102.7Eliminations (0.1) (0.2) 0.0 0.0

147.9 150.5 (2.6) 98.3 1.1 (5.5) 1.8 101.3

Others 20.5 19.6 0.9 104.4 0.9 104.4Eliminations (11.4) (10.6) (0.8) (0.8)

Total 157.0 159.5 (2.5) 98.4 1.1 (5.5) 1.9 101.2

Overseas North America 96.6 96.0 0.6 100.6 (7.9) 8.5 108.8Europe 13.0 12.3 0.7 105.4 (0.4) 1.1 109.0Asia & Oceania 15.8 14.4 1.4 109.7 (0.2) 1.6 111.2Others 24.2 24.0 0.2 100.7 0.2 100.7

Foods-Manufacturingand sales

28

Eliminations (21.2) (20.7) (0.5) 0.4 (0.8)Total 128.3 126.0 2.3 101.9 (8.2) 10.5 108.4

Kikkoman(Holding Company) 11.7 11.6 0.2 101.3 0.2 101.3Eliminations (13.8) (13.7) (0.2) (0.2)

Consolidated Total 283.2 283.5 (0.2) 99.9 (8.2) 1.1 (5.5) 12.4 104.5

Exchange Rate(\ /US$) 79.3 85.8 (6.5)(\ /EUR) 110.2 113.6 (3.4)

Performance in Fiscal 2012 -Japan-Performance in Fiscal 2012 -Japan-Net Sales(Compared with Fiscal 2011) (Unit: billions of yen)

Breakdown of change


Increase /Decrease

％Impact ofDisaster

The Effect ofStructuralReforms

ActualDifference

％

Japan Soy Sauce 46.4 47.2 (0.8) 98.4 0.3 (1.0) 97.8Food Products 56.4 56.3 0.0 100.0 0.5 (0.7) 0.2 100.3Beverages 33.0 34.4 (1.4) 95.8 0.2 (4.0) 2.3 107.6

[Major reasons for actual change]・ Soy sauce Substantial increase in sales of the Itsudemo Shinsen series.

Sales as a whole declined, however, due to lackluster sales in the foodservice-use sector and of

( ) ( )Sake and Wine 12.3 12.7 (0.4) 96.8 0.2 (0.9) 0.3 102.7Eliminations (0.1) (0.2) 0.0 0.0

147.9 150.5 (2.6) 98.3 1.1 (5.5) 1.8 101.3

Others 20.5 19.6 0.9 104.4 0.9 104.4Eliminations (11.4) (10.6) (0.8) (0.8)

Total 157.0 159.5 (2.5) 98.4 1.1 (5.5) 1.9 101.2


29

mainstay container sizes in the home-use sector.・Food Products Tsuyu and tare sales rose, while sales of handy seasoning mixes increased more than 20%.

Sales as a whole increased only modestly, however, as sales of tomato ketchup for foodservice-use declined due to impact of the March 11 earthquake

・Beverages Sales of Del Monte beverages increased substantially throughout the year.Sales of soy milk beverages increased year on year after recovering steadily in the second half

・Others Sales rose in the biochemical and chemical products business and thelogistics business

Performance in Fiscal 2012 -Overseas-Performance in Fiscal 2012 -Overseas-Net Sales(Compared with Fiscal 2011)

(Unit: billions of yen) Breakdown of change


Increase /Decrease


ActualDifference

％

Overseas North America 96.6 96.0 0.6 100.6 (7.9) 8.5 108.8 Foods-Manufacturing and sales 31.3 32.4 (1.1) 96.6 (2.7) 1.6 104.9 Foods-Wholesale 69.4 67.9 1.5 102.2 (5.6) 7.1 110.4Europe 13.0 12.3 0.7 105.4 (0.4) 1.1 109.0

1st half 2nd half

YoY Change in OverseasSoy Sauce Sales Volume (%)

p 13.0 12.3 0.7 105.4 (0.4) 1.1 109.0 Foods-Manufacturing and sales 6.1 5.7 0.4 107.0 (0.2) 0.6 110.3 Foods-Wholesale 7.7 7.4 0.3 104.5 (0.3) 0.6 108.2Asia & Oceania 15.8 14.4 1.4 109.7 (0.2) 1.6 111.2 Foods-Manufacturing and sales 8.3 7.7 0.7 108.6 (0.3) 1.0 113.1 Foods-Wholesale 7.7 6.9 0.8 110.9 0.1 0.6 109.1Others 24.2 24.0 0.2 100.7 0.2 100.7Eliminations (21.2) (20.7) (0.5) 0.4 (0.8)

Total 128.3 126.0 2.3 101.9 (8.2) 10.5 108.4


30

[Major reasons for actual change]・ Business performance was favorable for all business segments

in all regions・ Sales increased on a local currency basis・ Soy sauce Sales volumes rose as planned for the most part year on year・ Foods-Wholesale Sales rose amid the expanding popularity of Japanese food, while damage from harmful

rumors of alleged radioactive contamination regarding produce from Japan was minimal

Full year1st half

Apr.-Sep.2nd half

Oct.-Mar.North America 101 104 99Europe 114 118 111Asia & Oceania 114 111 116

Operating Income(Compared with Fiscal 2011)Breakdown of change


Increase /Decrease


Impact ofDisaster


Performance in Fiscal 2012 Performance in Fiscal 2012


Japan 3.6 5.7 (2.1) 63.6 (0.2) (1.9) 67.1

Others 1.7 1.5 0.2 113.6 0.2 113.6

Total 5.3 7.2 (1.9) 74.0 (0.2) (1.7) 76.8

Overseas North America 8.1 8.1 (0.0) 99.8 (0.7) 0.7 108.7

Europe 1.8 1.5 0.2 115.1 (0.1) 0.3 118.8

Asia & Oceania 1.4 1.2 0.2 118.3 (0.0) 0.2 119.6

Others 1.0 1.0 (0.1) 91.3 (0.1) 91.3


31

Total 12.2 11.9 0.3 102.7 (0.8) 1.1 109.5

Kikkoman(Holding Company) 3.6 3.5 0.1 102.2 0.1 102.2

Eliminations (3.3) (3.4) 0.0 (0.1) 0.1

Consolidated Total 17.8 19.2 (1.4) 92.5 (0.9) (0.2) (0.4) 98.1Exchange Rate(\ /US$) 79.3 85.8 (6.5)

(\/EUR) 110.2 113.6 (3.4)

2011 3 7 2

Change in Operating Income -Japan-Change in Operating Income -Japan-

Japan(¥ 1.9 billion) (Unit: billions of yen)

Major reasons for changes in operating income

Impact of disaster, etc.

Impact of pension costs

Impact of depreciation costs

Increase in cost of raw materials, etc

Impact of diffence in net sales

2011.3

(0.2)

(0.5)

(0.6)

(1.0)

0.4

7.2

2012.3

Others

Impact of SG&A expenses

5.3

(0.2)

0.2

32

2011.3 11.9

Change in Operating Income -Overseas-Change in Operating Income -Overseas-

Overseas+ ¥ 0.3 billion (Unit: billions of yen)

Major reasons for changes in operating income

Others


Increase in cost of raw materials, etc.

Impact of soy-sauce price hikes

Impact of increased sales

(0.0)

(0.9)

(0.7)

0.7

2.1

2012.3

Translation difference

12.2

(0.8)

(0.0)

33

Change in Consolidated Balance SheetsChange in Consolidated Balance Sheets(Unit: billions of yen)

　a. Total Asset＝331.4 (Compared with 2011.3) +32.5　b. Translation Difference (1.6) Actual Difference（ a.－b. ） +34.2

Assets +34.2 Liabilities and net assets +34.2 C t t +25 4 Li biliti +28 1Current assets +25.4 Liabilities +28.1

Cash and deposits (1.9) Interest bearing debt +29.4 Notes and accounts Trade notes and accounts payable,receivable-trade other accounts payableShort-term investment securities +20.0 Income taxes payable (1.0)Inventories +3.6 Other (0.3)Other +0.2

Non-current assets +8.7 Net assets +6.0 Property, plant and equipment +3.4 Retained earnings +6.4

(0 9) 0 8

+3.5 +0.1

34

Intangible assets (0.9) Valuation difference on available-for-sale securities +0.8 Investments and other assets +6.2 Foreign currency translation adjustments (0.6)

Minority interests (0.3) Other (0.3)

Consolidated Cash FlowsConsolidated Cash Flows

Net CF（ a. + b. + c. + d. ） = +17.0 (Unit: billions of yen)

a. Cash flows from operating activities b. Cash flows from investing activities

+16.4 (24.6)

Income before income taxes 2' Proceeds from sales of property, and minority interests +15.4 plant and equipment +2.2

Depreciation and amortization +12.6 2' Purchase of property, plantp p p y, pIncome taxes (6.2) plant and equipment (19.2)

Inventories (3.5) Purchase of investment securities (6.9)

Other (1.9) Other (0.7)

a. +2’ 　Free Cash Flows (0.6)

b. -2’ 　Cash Flows from Investing Activities　　　　(Excluding Purchase of Property, Plant and Equipment ) (7.6)

c Cash flows from financing activities d Effect of exchange rate (0 5)

35

c. Cash flows from financing activities d. Effect of exchange rate (0.5)

+25.8

Proceeds from issuance of bonds +29.8

Loans payable (0.8)

Cash dividends paid and etc. (3.2)

Forecast for Fiscal 2013 Assumptions made for full-year forecastsForecast for Fiscal 2013 Assumptions made for full-year forecasts

Exchange rates¥78/US$, ¥100/EUR

Cost increase in raw materialsConsolidated total ¥700 million (Japan ¥500 million, Overseas ¥200 million)

[Underlying assumptions]Chicago soybean futures, $13 to $14/bushelWheat, $6.5/bushelCrude oil, around $115/barrel

36

Impact of the shortage and price increase ofelectricity

This will be absorbed as much as possible by thorough production planning and energy conservation

Forecast for Fiscal 2013Forecast for Fiscal 2013【Full year】 Consolidated (Compared with Fiscal 2012 Actual) (Unit: billions of yen)

Breakdown of change

Fiscal 2013Forecast

Fiscal 2012Actual




Net Sales 291.0 283.2 7.8 102.7 (3.7) 11.5 104.1( )

　Japan 160.0 157.0 3.0 101.9 3.0 101.9

　Overseas 133.0 128.3 4.7 103.6 (3.7) 8.4 106.5

Operating Income 19.0 17.8 1.2 107.0 (0.4) 1.6 109.0

　Japan 6.0 5.3 0.7 113.1 0.7 113.1

　Overseas 13.2 12.2 1.0 108.3 (0.4) 1.4 111.2

Ordinary income 16.7 15.2 1.5 109.6 (0.4) 1.8 111.9

37

Income before incometaxes and minorityinterests

16.7 15.4 1.3 108.2 (0.4) 1.6 110.5

Net Income 10.0 9.0 1.0 111.3 (0.2) 1.3 113.9Exchange Rate(\/US$) 78.0 79.3 (1.3)

(\/EUR) 100.0 110.2 (10.2)

Forecast for Fiscal 2013Forecast for Fiscal 2013【Full year】 Net Sales（Compared with Fiscal 2012） (Unit: billions of yen)

Breakdown of change

TranslationDifference


Japan Soy Sauce 46.4 46.4 (0.0) 100.0 (0.0) 100.0Food Products 57.5 56.4 1.1 102.0 1.1 102.0Beverages 34.5 33.0 1.5 104.6 1.5 104.6

Fiscal 2013Forecast

Fiscal 2012Actual


％

Sake and Wine 12.4 12.3 0.1 101.0 0.1 101.0Eliminations (0.2) (0.1) (0.1) (0.1)

150.6 147.9 2.7 101.8 2.7 101.8

Others 20.5 20.5 (0.0) 100.0 (0.0) 100.0Eliminations (11.1) (11.4) 0.3 0.3

Total 160.0 157.0 3.0 101.9 3.0 101.9

Overseas North America 97.5 96.6 0.9 101.0 (2.1) 3.0 103.1Europe 13.6 13.0 0.6 104.8 (1.2) 1.8 113.9Asia & Oceania 16.7 15.8 0.9 105.6 (0.5) 1.4 108.9Others 25.2 24.2 1.0 104.3 1.0 104.3


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Eliminations (20.0) (21.2) 1.2 0.0 1.1Total 133.0 128.3 4.7 103.6 (3.7) 8.4 106.5

Kikkoman(Holding Company) 12.3 11.7 0.6 104.9 0.6 104.9Eliminations (14.3) (13.8) (0.5) (0.5)

Consolidated Total 291.0 283.2 7.8 102.7 (3.7) 11.5 104.1


Forecast for Fiscal 2013 -Japan-Forecast for Fiscal 2013 -Japan-【Full year】 Net Sales（Compared with Fiscal 2012） (Unit: billions of yen)

Japan Soy Sauce 46.4 46.4 (0.0) 100.0Food Products 57.5 56.4 1.1 102.0

Fiscal 2013Forecast

Fiscal 2012Actual


％

[Major reasons for the forecast change]S C ti d i i hi t l f t f th It d Shi i

Beverages 34.5 33.0 1.5 104.6Sake and Wine 12.4 12.3 0.1 101.0Eliminations (0.2) (0.1) (0.1)

150.6 147.9 2.7 101.8

Others 20.5 20.5 (0.0) 100.0Eliminations (11.1) (11.4) 0.3

Total 160.0 157.0 3.0 101.9


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・Soy sauce Continued increase in shipment volume forecast for the Itsudemo Shinsen series.Sales should be flat as a whole, however, due in part to market contraction.

・Foods Products Continued growth forecast in tsuyu and tare sales.Further expansion planned for the handy seasoning mix business.

・Beverages Sales of soy milk beverages are forecast to move back onto a high growth trajectory.Sales of Del Monte beverages are forecast at the same level as Fiscal 2012

Forecast for Fiscal 2013 -Overseas-Forecast for Fiscal 2013 -Overseas-【Full year】 Net Sales（Compared with Fiscal 2012） (Unit: billions of yen)

Breakdown of change

Fiscal2013

Forecast

Fiscal2012

Actual



ActualDifference

％

Overseas North America 97.5 96.6 0.9 101.0 (2.1) 3.0 103.1 Foods-Manufacturing and sales 32.3 31.3 1.0 103.2 (0.6) 1.5 104.9 Foods-Wholesale 69.4 69.4 (0.0) 100.0 (1.5) 1.4 102.1

Forecasted YoY Change in Overseas

( ) ( )Europe 13.6 13.0 0.6 104.8 (1.2) 1.8 113.9 Foods-Manufacturing and sales 6.5 6.1 0.3 105.6 (0.6) 0.9 115.0 Foods-Wholesale 8.2 7.7 0.4 105.5 (0.7) 1.1 113.9Asia & Oceania 16.7 15.8 0.9 105.6 (0.5) 1.4 108.9 Foods-Manufacturing and sales 8.8 8.3 0.4 105.2 (0.2) 0.6 107.5 Foods-Wholesale 8.2 7.7 0.5 106.2 (0.4) 0.8 110.9Others 25.2 24.2 1.0 104.3 1.0 104.3Eliminations (20.0) (21.2) 1.2 0.0 1.1

Total 133.0 128.3 4.7 103.6 (3.7) 8.4 106.5

Exchange Rate(\/US$) 78.0 79.3 (1.3)(\/EUR) 100 0 110 2 (10 2)

40

[Major reasons for the forecast change on a local currency basis]

・Sales are forecast to increase in all businesssegments in all regions

Full yearForecast

1st halfApr.-Sep.Forecast

2nd halfOct.-Mar.Forecast

North America 103 101 106Europe 112 112 113Asia & Oceania 108 109 107

gSoy Sauce Sales Volume (%)

(\/EUR) 100.0 110.2 (10.2)

Forecast for Fiscal 2013 Forecast for Fiscal 2013 【Full year】 Operating Income（Compared with Fiscal 2012）

Breakdown of change

TranslationDifference


Japan 4.7 3.6 1.1 130.2 1.1 130.2

Fiscal 2013Forecast

Fiscal 2012Actual


％


Others 1.3 1.7 (0.4) 78.6 (0.4) 78.6

Total 6.0 5.3 0.7 113.1 0.7 113.1

Overseas North America 8.6 8.1 0.5 106.8 (0.2) 0.7 108.7

Europe 1.9 1.8 0.1 108.3 (0.1) 0.3 116.5

Asia & Oceania 1.7 1.4 0.2 115.9 (0.1) 0.3 120.4

Others 1.1 1.0 0.1 110.1 0.1 110.1

Total 13.2 12.2 1.0 108.3 (0.4) 1.4 111.2

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Kikkoman(Holding Company) 3.4 3.6 (0.2) 94.6 (0.2) 94.6

Eliminations (3.6) (3.3) (0.3) (0.3)

Consolidated Total 19.0 17.8 1.2 107.0 (0.4) 1.6 109.0

Exchange Rate(\/US$) 78.0 79.3 (1.3)(\/EUR) 100.0 110.2 (10.2)

2012.3 5.3

Breakdown of Forecasted Change in Operating Income -Japan-Breakdown of Forecasted Change in Operating Income -Japan-Major Reasons for Forecasted Change in Operating Income

Japan+ ¥ 0.7 billion (Unit: billions of yen)

Impact of SG&A

Impact of pensonnel costs

Impact of depreciation costs

Increase in cost of raw materials, etc

Impact of diffence in net sales

(0 3)

0.1

0.4

(0.5)

0.9

2013.3

Others

expenses

6.0

0.1

(0.3)

42

2012.3 12.2

Breakdown of Forecasted Change in Operating Income -Overseas-Breakdown of Forecasted Change in Operating Income -Overseas-Major Reasons for Forecasted Change in Operating Income

Overseas+ ¥ 1.0 billion (Unit: billions of yen)

Others


Increase in cost of raw materials, etc.

Impact of soy-sauce price hikes

Impact of increased sales

(0.0)

(0.7)

(0.2)

0.3

2.0

2013.3

Translation difference

13.2

(0.4)

43

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