Nissin Foods : Notice Concerning NISSIN FOODS Group Mid- to Long-Term Growth Strategy

May 11, 2021

NISSIN FOODS HOLDINGS CO., LTD.

Koki Ando

President and Representative Director, CEO

Notice Concerning NISSIN FOODS Group

Mid- to Long-Term Growth Strategy

The NISSIN FOODS HOLDINGS Co., Ltd. has formulated the NISSIN FOODS Group Mid- to Long- Term Growth Strategy, a business plan that defines growth strategies for FY 3/ 2022 and beyond, and growth targets over the next 10 years. The Mid- to Long-Term Growth Strategy, an overview of which follows below, takes over for the Mid-Term Business Plan 2021, which covered the preceding five years from FY 3/2016 through FY 3/2021 (fiscal year ended March 31, 2021).

1. NISSIN FOODS Group Creating Shared Value (CSV) Management

To achieve sustainable growth while solving environmental and social issues as an "EARTH FOOD CREATOR", constantly creating new food cultures through innovation.

			Enduring Values
			食足世平 Peace will come to the world when there is enough food
	Mission		食創為世 Create foods to serve society
			美健賢食 Eat wisely for beauty and health
			食為聖職 Food related jobs are a sacred profession
	Vision		EARTH FOOD CREATOR
	Value		Four Attributes
		Creative, Unique, Happy, Global

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2. Mid- to Long-Term Growth Strategy

NISSIN FOODS Group will engage in three mid- to long-term growth strategies, pursuing the Group's vision and sustainable growth based on CSV management.

#			Growth Strategy		Overview
			Strengthen Cash		Make a significant shift in profit portfolio through aggressive
1			Generation Capabilities		growth in Overseas and Non-Instant Noodles Businesses,
			of Existing Businesses		while pursuing sustainable growth
			EARTH FOOD		A challenge to utilize finite resources effectively and reduce
2				the impact of climate change
		CHALLENGE 2030
				Lengthen the life cycles of existing businesses
					Co-create foods of the future with food science
3			Pursue New Businesses		Become a company that provides food and health solutions
					through technology

Growth Targets Over the Next 10 Years: Profit Structure and Profit Growth Levels

	Business		Overseas	Domestic Non-Instant	Domestic Instant
		Noodles Business	Noodles Business
	Target		Current 30% → 45%	Current 10% → 15%	Current 60% → 40%
	Structure
	Growth		High-single Digit to	High-single Digit	Outpace Market Growth
	Targets		Double Digit
	Strategic		The Leading Company	Build a Second Profit	A Century Brand
		in the High-Value-Added	Pillar Next to the Instant
	Goal		Company
		Market	Noodles Business
			Deepen CUP NOODLES	Leverage growth and	Deepen efforts to develop
			branding to further solidify	profitability improvement	demand, penetrate
			competitive advantage,	in each business,	brands, develop markets,
	Future		and roll out operational	focusing on added value	and strengthen supply
	Strategic		strategies according to	by pursuing Group	capabilities to continue to
		markets, competitive	synergies on both the	grow over the medium to
	Direction
		environment, and the	supply and demand sides	long term, steadily
			Group's own competitive		increasing sales and
			abilities		profits, even in mature
					markets

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3. Quantitative Targets

NISSIN FOODS Group is committed to achieving four mid- to long-term economic value (financial) targets through CSV management: (1) Sustainable profit growth, (2) Efficient use of capital,

1. Safe use of debt, and (4) Stable shareholder returns. The group will pursue these targets while also pursuing targets related to social value and environmental value (non-financial).

Financial

Non-Financial2

Value Classification		Management Indicator			Mid- to Long-
			Term Target
	Growth Potential		Core Operating Profit Growth Rate1 for		Mid-single Digit
		Existing Businesses (Constant Currency）
	Efficiencies		ROE		10% over the
			long term
	Safety		Net Debt/EBITDA Ratio		≦2x
	Stable Shareholder		Dividend Policy		Progressive
			Dividends
	Returns
		Relative TSR vs. TOPIX (Foods)		＞1x
			Sustainable Palm Oil Procurement Ratio3	100%
	Effective Use of		Water Usage		12.3 ㎥
		Per million yen of revenue (IFRS basis)
	Finite Resources
		Total Waste Reduction	-50%
			Compared to FY 3/2016/Japan
			Reduction of CO2 Emissions (Scope1+2)	-30%
	Reduce Climate		Compared to FY 3/2019
	Change Impact
		Reduction of CO2 Emissions (Scope 3)	-15%
			Compared to FY 3/2019

Related information:

https://www.nissin.com/en_jp/ir/library/file/2021/4q_presentation_material_slide_only.pdf

1. A non-GAAP key performance indicator calculated by deducting other income and expenses (defined as income/expenses from new businesses targeted by aggressive up-front investment and non-recurring income/expenses) from IFRS operating profit
2. Non-financialtargets reflect FY3/2031 figures
3. Based on external certifications and independent assessments

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