Food: Increase in Sales and Market Share of Core Products Enhancing Added Values (1)

Meiji Holdings Co., Ltd. Financial Results- For the First Half of FYE March 2017 -

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	Financial Results - For the First Half of FYE March 2017 -

	1. Overview for the First Half

	2. Outlook for the Second Half and Full-year

	3. Progress in STEP UP 17 strategy: Our strategic efforts to address issues Food: Increase in Sales and Market Share of Core Products Enhancing Added Values (1) Food: Increase in Sales and Market Share of Core Products Enhancing Added Values (2) Food: Structural Reform in Processed Food business: Selection and Concentration Resulted in Improved Profitability Food: Establish Effective Logistics System to Decrease Logistics Costs Food: Increase Profitability by Expanding Sales in Overseas Business Phama: Establish Market Presence for Newly Launched Products and Boost Sales of Existing Products in Domestic Business Phama: Execute expansion strategy and contribute to profit in Overseas Business Phama: Focus on Our Expertise to Develop New Drugs

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	Appendix

Food: Increase in Sales and Market Share of Core Products Enhancing Added Values (1)

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Food segment
Yogurt, functional yogurt
Market growth continues (growth rate in H1: +7%).
Our market superiority is not threatened despite the competitor products' growth.
Our market share is growing steadily (H1 market share: 43.1%, +0.5 percentage points YoY).

- Launched new flavors for R-1 and Bulgaria drinkable yogurt.

- Boost repeat purchases for R-1.

- Establish market presence of PA-3.

- Use research findings on lactobacilli in marketing.

Decided to invest in expanding production capacity due to demand pressure on supply capacity of functional yogurt during Q4 of last FY. Avoid lost opportunities risk.