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.