Data

Overview of Medium-term Business Plans

Concept

Period

President

Basic Strategy

Main

Initiatives

Achievements

Main

Investments

Operating

Environment

Stock Price/Currency Exchange Rate

(at end of plan period) Figures

Net Sales

  • (Overseas Sales) Operating Profit
  • (Operating Margin) Ordinary Profit Profit
    EBITDA ROE EPS

Total 3-Year Capital Expenditures

Incl. Processed foods Logistics

energy 2012

RISING 2015

Aim to achieve FY2013 targets by conducting business activities

With the goal of achieving medium-term management vision

based on employee (1) energy/vitality, (2) ability to act/execute and

GROWTH 2016, increase the corporate value of the Nichirei Group

(3) (strong) efforts/initiatives

by realizing the sustainable growth targeted in the plan

April 2010 to March 2013

April 2013 to March 2016

Toshiaki Murai

Kunio Otani

Achieve sustainable earnings growth by steadily pursuing business

Each operating company will, by displaying its unique capabilities and

strategies and responding promptly to the operating environment.

helping to resolve social issues through business development, fulfill its "six

responsibilities" and establish a foundation for sustainable growth responsive

to changes in the operating environment in Japan and overseas.

(1) Bolster earnings capacity and achieve sustainable growth by effectively

(1) Bolster the earnings capacity of individual Group companies in Japan

allocating management resources

and overseas to achieve sustainable growth.

(2) Facilitate the sustainable growth of the core operating companies by

(2) Build a global quality assurance system.

identifying and capturing growth opportunities

(3) Allocate the Group's management resources appropriately and continue

(3) Obtain the trust of society by providing valuable food safety and

to implement a policy of providing appropriate returns to shareholders,

reliability

including the acquisition of treasury stock and a dividend increase.

(4) Strengthen the source of the Group's competitiveness by further

(4) Upgrade corporate functionality in the holding company structure.

improving management quality

(5) Strengthen the strategy on technological innovation in response to

(5) Strengthen the Group's abilities to collect and analyze new technologies

major changes in social and economic circumstances.

to create new business models that will ensure sustainable growth

(6) Examine the possibility of acquiring treasury stock as part of a capital

policy

(7) Redevelop the retirement benefit system

Achieved the plan targets for operating profit in the core processed foods

Made investments for sustainable growth and achieved Group targets for

and logistics businesses; marine, meat and poultry products fell

net sales and operating profit

substantially short

Processed Foods

Processed Foods

• Strengthened the domestic in-house production system

• Expanded sales of prepared frozen foods for the household-use and

• Expanded business scale in the United States

HMR markets

Logistics

• Started full-scale operation of two factories for processed poultry

• Started operation of large-scale refrigerated warehouses in the Tokyo and

products in Thailand

Osaka metropolitan areas

Logistics

• Expanded earnings base by starting operation of Higashi-ogishima DC

and other sites

• Increased contracts for XD outsourcing

• FY2011

• FY2014

(Processed Foods) GFPT Nichirei (Thailand) Co., Ltd. established, Surapon

(Processed Foods) Newly established Funabashi No. 2 Plant

Nichirei Foods Co., Ltd. Kabinburi Plant Building No. 2 expansion

(Logistics) Higashi-ogishima DC Phase 2 Building

(Logistics) Fukuoka Higashihama DC, acquisition of Transports Godfroy

• FY2015

S.A.S. (France)

(Processed Foods) Expanded cooked rice products production line

• FY2012

(Logistics) Sakishima DC, Tokachi DC

(Logistics) Higashi-ogishima DC, Kagoshima So DC

• FY2016

• FY2013

(Logistics) Funabashi DC (rebuilding)

(Processed Foods) Acquisition of InnovAsian Cuisine Enterprises Inc. (USA)

Great East Japan Earthquake and subsequent nuclear power plant

Focus on food safety and security resulting from factors including cases

accident

of pesticide problems and meat sold after its sell-by date

Appreciation of the yen as European financial instability becomes

Consumption tax rate hike to 8% as Abenomics starts, and the yen

widespread

depreciates

Nikkei Stock Average: ¥12,397.91

Nikkei Stock Average: ¥16,758.67

Dollar/Yen exchange rate: ¥94.19

Dollar/Yen Exchange Rate: ¥112.56

Final year results

Final year results

¥470.1 billion

¥535.3 billion

¥37.5 billion

¥75.5 billion

¥17.9 billion

¥21.5 billion

3.8%

4.0%

¥17.2 billion

¥21.4 billion

¥9.8 billion

¥13.4 billion

¥32.2 billion

¥38.0 billion

8.2%

9.1%

¥33.40

¥94.30

¥47.5 billion

¥64.4 billion

¥15.5 billion

¥24.7 billion

¥27.8 billion

¥34.4 billion

106 Nichirei Group Integrated Report 2021

POWER UP 2018

WeWill 2021

Steadily strengthen the foundation of the Group and steadily

Aim to realize the long-term management goals toward 2030 with a

implement structural reforms to generate the potential that

strong intention to create a distinctive future

enables sustainable growth

April 2016 to March 2019

April 2019 to March 2022

Kunio Otani

Kenya Okushi

Aim for profit growth from strengthening the earnings base and improving

Through planned investments significantly higher than the previous medium-term business

asset efficiency in domestic businesses and for accelerated expansion of

plan, we aim to further accelerate sustainable profit growth and create new value that

scale in the overseas business.

supports good eating habits and health.

Focus on business innovation and new business development for medium-

to long-term growth.

General Strategy

General Strategy

(1)

Ensure sustainable earnings growth and raise capital efficiency.

(1)

Raise profitability in Japan by strengthening the management foundation and

(2)

Pursue continued expansion in scale for overseas business.

transforming the business structure.

(3)

Further enhance the Nichirei Group's capabilities for quality assurance.

(2)

Accelerate the expansion of scale in overseas operations.

(4)

Continue to strengthen corporate governance and other ESG-related

(3)

Reinforce efforts to develop new businesses, conduct R&D, and reform businesses in

efforts.

order to ensure longer-term growth.

(5)

Focus more intently on utilizing diverse personnel.

(4)

Help communities deal with issues they face and make them more sustainable through

Financial Strategy

our businesses.

(5)

Focus more intently on work style reform and utilization of diverse personnel.

  • Maintain return on equity (ROE) of at least 8%.

Provide a continual, stable dividend with a target DOE of 2.5%.

Financial Strategy

Consider share buy-backs of around 20 million shares (approx. 7% of

Maintain return on equity (ROE) of 10% or higher.

total issued shares)

Provide a dividend with a target DOE of 3.0%

Achieved Group targets for net sales and operating profit by improving

Note: See pages 42-43 for the progress and outlook for Medium-term Business Plan

profitability of processed foods and stably expanding logistics

WeWill 2021.

Processed Foods

  • Improved profitability in Japan on expanded sales of mainstay products

Logistics

  • Expanded cargo pickups mainly in metropolitan areas and improved balance of transport income

Meat and Poultry

  • Increased earnings

• FY2018

• FY2020

(Logistics) Heiwajima DC (rental)

(Logistics) Naha shinkou DC

(Marine Products) Trans Pacific Seafood Co., LTD. (Vietnam) established

• FY2021

• FY2019

(Processed Foods) GFPT Nichirei (Thailand) Co., Ltd. second plant opened

(Bioscience) Global Innovation Center established

(Logistics) Nagoya minato DC, Honmoku DC

Rising nationalism in the United States and elsewhere, and slow progress

Consumption tax rate hike to 10%

of negotiations for the United Kingdom's departure from the EU

The global COVID-19 pandemic drastically changes social conditions. The United

The Paris Agreement and TPP come into effect

Kingdom leaves the EU.

Series of natural disasters in Japan

Tokyo Olympics and Paralympics postponed for one year

Nikkei Stock Average: ¥21,205.81

Yen/Dollar Exchange Rate: ¥110.84

Final year results

Final year forecast

Plan targets

¥580.1 billion

¥600.0 billion

¥657.0 billion

¥79.2 billion

¥77.3 billion

¥102.3 billion

¥29.5 billion

¥35.0 billion

¥35.0 billion

5.1%

5.3%

5.8%

¥29.9 billion

¥35.5 billion

¥35.2 billion

¥19.9 billion

¥23.0 billion

¥22.0 billion

¥47.0 billion

¥57.2 billion

¥57.6 billion

11.7%

10 or higher

10 or higher

¥149.65

¥172.59

¥164.90 or more

¥63.0 billion

¥108.4 billion

¥100.8 billion

¥21.3 billion

¥40.4 billion

¥42.3 billion

¥29.6 billion

¥56.8 billion

¥47.1 billion

Story Creation Value Strategy Management

Strategy Financial

Achieving for Initiatives Strategy Business Society Sustainable a

Data

Nichirei Group Integrated Report 2021 107

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Nichirei Corporation published this content on 26 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 November 2021 07:19:02 UTC.