Ito En : Financial Results Presentation for FY2020

Financial Results Presentation for FY2020

(Fiscal Year Ended April 30, 2021)

June 2021 ITO EN, LTD.

Copyright (C) All Rights Reserved. ITO EN, LTD.

INDEX

Soft Drink Market in Japan/ About achievements	…P.3
Effects of COVID-19
Forecasts for FY 2021	…P.8
Application of revenue recognition standard
Marketing & Management strategy	…P.12
Appendix	…P.26

Copyright (C) All Rights Reserved. ITO EN, LTD.

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Soft Drink Market in Japan/ About achievements

Copyright (C) All Rights Reserved. ITO EN, LTD.

3

Soft Drink Market in Japan

Soft Drink Market Trends

（¥ billion）						Coffee has become popular								Tea has become Popular							Results 2020 year	YoY －9%
4,000					Create a Unsweetened
					RTD Tea Market																							（¥ billion）										－ 16 ％
																									202.0										4,000
																							187.0			200.0							Others	3,759.0	3,425.0			Others
3,500																221.9			218.4				166.0		154.0													Vegetable	＋ 2
																						140.0		235.0					178.0		178.0												％
																145.6			159.2		244.0			226.5				157.0		Vegetable	3,000									Sports Drink	－ 15 ％
		1980			1985						276.3								157.0
							260.1						295.0		280.0				199.0
3,000				Pioneering of	Pioneering of									305.0					193.0			Sports Drink										M ineral Water	－ 10 ％
				Canned				Canned
				Oolong Tea	Green Tea			447.4			376.4				289.0		284.0			224.0		221.0			2,000									Carbonated	＋ 0	％
														934.0					267.0								Fruit
																							259.0
2,500																													256.0												Coffee	－ 12 ％
																	157.5
															97.7
																		538.5		720.0		740.0		733.0			735.0		745.0		Mineral Water	1,000									Tea total	－ 9	％
2,000																648.9																						of which Green tea	－	6
																															Carbonated										％
														718.2																					0									of which Other tea	－ 12	％
1,500																		955.1				933.0		915.0								2019		2020
																															YoY ＋2%
												720.3				922.3				942.0					805.0		835.0		Coffee	Forecast 2021 year
1,000														843.5																					（¥ billion）
																											(966.5)
																			(931.3)				(945.0)
																											(901.0)			4,000									Others	－ 1
																							(873.0)							(877.0)			(Tea total)									％
								699.3			659.0				(796.4)			484.3		458.0		500.0		521.5			459.0		466.0		3,425.0	3,495.0
																															Other Tea										Vegetable	＋ 0	％
500			597.2								(604.4)		579.3
								330.0					519.2					447.0		415.0		445.0		445.0			418.0		435.0		Green Tea	3,000									Sports Drink	＋ 3	％
																																	M ineral Water	＋ 1
0			172.0								85.2		217.1																												％
																																		2,000									Carbonated	＋ 1	％
Trends in sugar-free beverage market
					45%		49%		52%																	Coffee	＋ 4	％
50%																		38%																								＋ 3
															31%													53%			1,000									Tea total
														25%																									％
25%		1%			2%		12%				More than half of all domestic beverages are sugar	-free.										of which Green tea	＋	4	％
0%																																			0									of which Other tea	＋	2	％
	1980		1985	1990		1995		2000		2005		2015		2018		2019		2020		2021			2020		2021
（¥ billion）
									Est.
T otal																																					Est.
-			- 2,708	3,100	3,540	3,613	3,678	3,805	3,759	3,425	3,495
														Source: ITO EN
																Sales of beverages that emphasize health value were strong.
Copyright (C) All Rights Reserved. ITO EN, LTD.			The trend is expected to remain the same during 2021.							4

Soft Drink Market in Japan and ITO EN

Monthly Sales Volume Trends	Beverage business of ITO EN (non-consolidated）

(%)	FY 2020								21
20								ITO EN
10		1			-4						-1	17
			-7	-7
0				-6	-6
			-12		-11
					-13
-10		-2
-22	-7-7	-5		-7-7			-3
-20		-12		-12
			Market			-16
-30		-27
May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr

Source: ITO EN, (Chart) May 2020 to Apr 2021

(%)	FY 2019			Market
10	3			4	3	2		1	3	2
				-3
0		-4								-4
									4
	-1			2
			-3	-2			-3		-3
-10			-19		-5	-4
	-7
										-23
-20						ITO EN
			-21								-23
-30
May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr

Source: ITO EN, (Chart) May 2019 to Apr 2020

News Related to Soft Drink Market

(Unit: million yen)

FY 2020
Results	Sales	YoY %Change
Composition

	Drinks	313,777	100.0	％	－	7.5 ％
	Tea total	201,133	64.1	％	－	7.8 ％
		Japanese Tea/Healthy Tea	182,681	58.2	％	－	5.5 ％
		Chinese Tea	14,611	4.7	％	－ 15.1 ％
		Black Tea	3,841	1.2	％	－ 50.0 ％
	Vegetable	43,622	13.9	％	－	0.8 ％
	Coffee	34,486	11.0	％	－	5.6 ％
	Mineral Water	7,752	2.5	％	－ 17.5 ％
	Carbonated	9,916	3.2	％	－ 11.3 ％
	Others	16,868	5.4	％	－ 16.4 ％

2020	May	Declaration of a State of Emergency
	Jul	Record amount of rainfall and long rainy
		season
2021	Jan	Restriction on New Year's events such as shrine
		visits
		Declaration of a State of Emergency (2nd time)
	Apr	Declaration of a State of Emergency(3rd time)

Source: ITO EN

Copyright (C) All Rights Reserved. ITO EN, LTD.

Ratio of sugar-free beverages： 75 %

ITO EN Product Development Concept：

"Natural, Healthy, Safe, Well-designed, Delicious"

*Conventional standard

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