Itoham Yonekyu Holdings Inc.
Medium-term Management Plan 2023
Progress Explanatory Materials
May 9, 2022
Group Philosophy and Vision
Group Philosophy
We will contribute to the realization of sound and affluent society through business.
Vision
A leading food company that continuously evolves with its employees by embracing the spirit of fairness and the challenge to progressions.
Founding spirit | Spirit that underlies the Group philosophy and vision |
Serving society | A Moving Food |
through business | Experience |
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Medium-term Plan 2023
Action | Achieve further growth and leap by defying stereotypes and |
guidelines | reaffirming our strengths |
- Need to solidify the management base and earnings base after the integration and increase competitiveness.
- Need to strengthen growth potential by responding to new market needs and social and environmental values.
Ongoing challenges after integration
I. Strengthen management base
- Strengthen earnings base
- Initiatives for new businesses and markets
Ⅳ. Initiatives for sustainability
Vision to achieve during period of Medium-term Management Plan
Maximize performance and potential
Maximize Group value
Establish new core earnings sources
Fulfill corporate social responsibility through business
Developing priority policy | for each theme | 2 |
Medium-term Plan 2023 | FY21 results and quantitative targets |
- Enhance competitiveness and added value in business to increase return on invested capital (ROIC).
- Implement shareholder return policies in consideration of financial soundness and capital efficiency to maximize shareholder value.
FY2020 | FY2021 | FY2021 | Difference | FY2022 | FY2023 | ||||||||||||
Results | Plan | Results | Forecasts | Plan | |||||||||||||
Operating income | 240 | 230 | 246 | 16 | 210 | 280 | |||||||||||
Processed Food | 123 | 110 | 110 | 0 | 75 | 145 | |||||||||||
Meat | 134 | 135 | 143 | 13 | 150 | 155 | |||||||||||
Other | -17 | -15 | -13 | 2 | -15 | -20 | |||||||||||
Ordinary income | 270 | 250 | 285 | 35 | 240 | 300 | |||||||||||
ROIC *1 | 6.3% | 6.0% | 6.6% | 0.6% | 5.1% | 6.8% | |||||||||||
Processed Food | 8.5% | - | 8.2% | - | 4.7% | - | |||||||||||
Meat | 9.3% | - | 10.3% | - | 8.5% | - | |||||||||||
Total Assets | 3,940 | 4,000 | 4,131 | 131 | 4,200 | *2 | 4,250 | ||||||||||
Shareholders' equity | 2,399 | 2,500 | 2,522 | 22 | 2,550 | *2 | 2,700 | ||||||||||
D/E Ratio | 0.15 | 0.13 | 0.13 | 0 | 0.15 | *2 | 0.10 | ||||||||||
*1 Insurance claim income in extraordinary income is excluded. | |||||||||||||||||
*2 Revised plan based on FY2021 results and FY2022 forecasts. | |||||||||||||||||
Ordinary Income | (billion yen) | ROIC | (%) | ||||||||||||||
billion yen
*Rounded down to the nearest 0.1 billion yen.
*ROIC =Earnings before interest after tax / (Interest-bearing debt + Equity capital)
Shareholder return policy
- Dividend
With target payout ratio of approx. 40%, we increase dividends steadily in 30% to 50% range.
Annual | Payout ratio | |
dividend | ||
FYE 3/2021 | ¥21 | 30.6% |
Results | ||
FYE 3/2022 | ¥23 | 35.2% |
Estimates | ||
FYE 3/2023 | ¥24 | 46.7% |
Forecasts | ||
- Share buyback and cancellation
# of shares | Amount | |
FYE 3/2021 | 2 million | ¥1.4 billion |
Results | ||
FYE 3/2022 | 1 million | ¥0.6 billion |
Results | ||
FYE 3/2023 | 10 million | ¥5.0 billion |
Estimates | (Maximum) | (Maximum) |
5 million shares of treasury stock to be canceled
(Scheduled on June 30, 2022)
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Medium-term Plan 2023
Priority Policy and Status (1/2)
Theme
FY 2021 Results | Initiatives for FY2022 and beyond | |
Strengthen
- manageme nt base
Strengthen
- earnings base
- Reorganization
-Strategy and procurement functions of the meat division integrated and into HD*1
- Digital strategy
-System design for the meat sector completed as part of MKB*2 project (core system integration)
Processed | Cost reduction | |
-Boost yield and man-hour productivity | ||
-Promote higher operating rates of high-efficiency lines by | ||
changing location of plant which manufacture products | ||
Food | Enhancement of added value | |
-Launch new commercial | ||
Business | Strengthen communication by using digital marketing, etc. | |
| Scale expansion | |
-Launch new products of business-use processed food for | ||
convenience stores | ||
Cost reduction | ||
Meat | ||
-Share information on suppliers and inventory positions | ||
Division | Scale expansion | |
-Meat Process & Farm Div. established to strengthen production | ||
business | ||
-Ishikari Packing Center established | ||
-Strengthen sales of unheated meat products | ||
Digital strategy | ||
Other | ||
-Improve business efficiency by introducing RPA |
(sales order, and accounting operations, etc.)
- Reorganization
-Strategy and headquarter functions of the processed food business integrated into HD
- Digital strategy
-System design for the processed food sector completed as part of MKB*2 project
-Digitalization of back office operations with the newly introduced expense management system
- Cost reduction
-Start the first phase of the reorganization of production bases (Reconstruction of the Yume Plant begins)
- Enhancement of added value
-Strengthen mutual sales by utilizing each company's logistics network
- Scale expansion
-New line development for processed food products (Toride
Plant)
- Cost reduction
-Logistics cost containment by using optimized refrigerators for sales
-Reorganize and integrate sales offices
- Scale expansion
-Newly establish farm for Yonekyu Oishiitori Corp.
-Construct Towada Meat Plant cattle processing facility begins
-Expand cattle and swine raising capacity on cooperating farms
(Tohoku area)
- Digital strategy
-Promote efficiency by introducing a meat standards management system
-Promote efficiency by expanding the scope of RPA utilization (logistics operations, and others)
*1 HD stands for Holdings, *2 MKB stands for MIRAIKIBAN Project
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Itoham Yonekyu Holdings Inc. published this content on 20 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2022 06:04:10 UTC.