Meiji : Financial Results for the Fiscal Year Ended March 31, 2024 (Slides)

Financial Results for FYE March 2024 (FY2023) and 2026 Medium-term Business Plan

(FYE March 2024: From April 1, 2023, to March 31, 2024)

May 10, 2024

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AGENDA

1. Summary of 2023 Medium-term Business Plan and Financial Results for FY2023
2. 2026 Medium-term Business Plan

1 © Meiji Holdings Co., Ltd. All rights reserved.

1. Summary of 2023 Medium-term Business Plan and Financial Results for FY2023

2 © Meiji Holdings Co., Ltd. All rights reserved.

Summary of 2023 Medium-term Business Plan - KPIs

(JPY bn)		FY2021	FY2022	FY2023		2023 Medium-term
			Business Plan
		Result	Result	Result*2	YoY change
		Target
Integrated goal	Meiji ROESG®*1	12.3 pt	13.8 pt	12.2 pt	-1.6 pt	13 pt
	Consolidated net sales	1,013.0	1,062.1	1,105.4	+4.1%	1,080.0
	+43.3
	Food	826.0	865.6	900.1	+4.0%	874.5
	+34.5
	Pharmaceutical	187.9	197.2	206.1	+4.5%	209.0
	+8.8
Growth and	Overseas net sales	92.9	120.0	132.3	+12.2	134.5
					+10.2%
Profitability
Consolidated operating	92.9	75.4	84.3	+11.8%	120.0
	profit (margin)	(9.2%)	(7.1%)	(7.6%)	+8.8	(11.1%)
	Food	75.9	55.8	64.3	+15.1%	102.0
	+8.4
	Pharmaceutical	18.6	21.7	22.7	+4.6%	18.5
	+0.9
Efficiency and	ROIC	8.4%	6.3%	6.2%	-0.0 pt	10% or more
Safety
Return to	ROE	13.5%	10.0%	6.9%	-3.1 pt	11% or more
shareholders
Dividend payout ratio	28.0%	36.4%	52.3%	+15.9 pt	40%

3	© Meiji Holdings Co., Ltd. All rights reserved.	*1: ROESG is a registered trademark for a management indicator developed by Kunio Ito, a professor at Hitotsubashi University.
*2: See p.26-37 for details on Meiji ROESG indicators and FY2023 results

Summary of 2023 Medium-term Business Plan

• Three-yearperiod during which we focused on the Meiji ROESG and worked towards simultaneously realizing profit growth and sustainability activities
• • Food: Recovery of growth in core businesses is midway. Overseas business steadily expanded in the U.S. Impairment losses were incurred in a part of China business in which we had made prior investments
  • Pharmaceutical: Implemented structural reforms and shifted to a business model that can gain stable profits Expanded pipelines that will drive future growth, incl. the acquisition of mRNA technology
  • Venture into new domains:

Collaborated with venture companies and academia to create new products and business models.

(e.g., Investments in California Cultured Inc. and Farmnote Holdings, Inc., / Collaborations with Juntendo Educational Foundation and Foundation of Biomedical Research and Innovation at Kobe)

• • Sustainability: Increased ESG evaluations through steady efforts. Worked to establish the evaluation standards necessary to achieve a fusion with business
• The need to improve operating methods recognized during the process of establishing a business management structure that utilizes ROIC. Reevaluated business units and organizations to accelerate permeation of ROIC- based management.
• Selected a portion of capital expenditures from the perspective of ROIC. Strategic investments and ESG investments proceeded as planned.
• Worked to reduce cross-shareholdings and non-current assets to maintain a sound financial structure. Increased dividends for tenth consecutive fiscal year

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2. 2026 Medium-term Business Plan (FY2024-2026)

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Ideals for 2026 Medium-term Business Plan

Concept

Evolve the Meiji ROESG® Management

Return to a growth trajectory by transforming focus markets, business structure, and our behavior

Realizing a Better Future

for People,

Society and the Earth

Creating new markets and sustainably improving our corporate value

Consolidated

operating profitEffects of structural reforms and rapid growth of some products

Structural reform through business integration and restructuring

Responding to changes in business conditions

2026 Medium- term Business Plan

• Balanced growth both in Food and Pharmaceutical segments
• Providing Meiji unique value for wellness
• Co-creationand cooperate with stakeholders

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2026

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2026 Medium-term Business Plan

Evolve the Meiji ROESG® Management

Return to a growth trajectory by transforming focus markets, business structure, and our behavior

Key strategies

1. Invest management resources into growth businesses

• Strengthen and expand overseas and B2B businesses of food segment, and pharmaceutical business as growth drivers

2. Keep and improve stable cash flow

• Enhance competitive advantage by pursuing added value
• Review business portfolio and improve capital efficiency

Fusion of sustainability and business strategies ("Trade-on")

3. Promote human capital strategy linked to management strategy

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Evolve the Meiji ROESG® Management

Continue to set Meiji ROESG as our top management goal as in the 2023 Medium-term Business Plan;

Create value that leads to business and financial performance growth with sustainability activities

Reviewing formula for calculating Meiji ROESG

	Meiji ROESG	＝	ROE
	(Average performance
	(Point)		over the past 3 years)

×

ESG (x0.8-1.2)

(5 indicators)

*Number of indicators achieved

and multipliers ・Achieve 5: ×1.2 ・Achieve 4: ×1.0 ・Achieve ≦3: ×0.8

ESG external evaluation	ESG external evaluation organization	1. MSCI ESG Ratings
2. DJSI
(3 indicators)	to assess sustainability activities
3. ISS ESG
Indicators of business and	Indicators that show the fusion of	Achievement of yearly net sales targets of the following
financial value	sustainability and business and lead	indicators
4. Food: Product brands subject to Meiji ROESG
(2 indicators)	to improved business performance
5. Pharmaceutical: Products subject to Meiji ROESG

• Changed the indicators to strongly emphasize the fusion of sustainability and business
• Set as a metric for medium to long-term incentives for compensation of directors (stock compensation)

to promote a commitment to improving corporate value

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*See p.46 for details on ESG indicators

"Trade-on" of Sustainability and Business

Incorporate resolving social issues into business strategy and create social value through sustainability innovation;

Achieve sustainable growth through "trade-on" with economic value

Activities

unique to Meiji

Healthier

Lives

Sustainable

Sourcing

Thriving	Caring for
Communities	the Earth

Foundation of
	Governance
Corporate Activities
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• Health and nutrition
• Safety and reliability of product quality
• Threats to emerging and re-emerging infectious disease
• Stable supply of pharmaceuticals by building a robust supply chain
• Building a supply chain considering human rights and the environment
• Diverse human capital
• Marketing based on high ethics
• Respect and promote human rights in a value chain
• Climate change
• Circular economy
• Water
• Biodiversity