• Within the Asian Food Global Business (hereinafter referred to as AFB), the company commits to achieve a sales of 500 billion yen and an operating income of 25 billion yen through organic growth of existing businesses by 2026 (*1). The company plan a 2% profit margin increase by expanding sales in existing sales channels (mainly mainstream), increasing PB production, reducing product costs through global EtoE integration of SCM, and reducing operating expenses through digitalization and investments in logistical efficiency. 

 

• In addition to the above, the company has generated 100 billion yen (*2) through operating and financial cashflow, and allocated  the 100 billion yen (*2) for strategic investments mainly in the follow three areas;

1. M&A and JVs to gain presence in unexplored regions within the AFB business, upfront investments in products/resources for which there are potential concerns regarding supply shortages in the future, investments to improve in-house production capability such as R&D and RTE products development, upfront investments in upstream areas where expansion is expected in the future such as plant-based seafood/meat and land-based aquaculture.
2. Investments in overseas production and sales of Japanese fruits and vegetables holding exclusive cultivation rights
3. Investments in the food industry solutions business and domestic/international food technology (including the acquisition of startup businesses with synergy).

 

• Maintain equity ratio of 30-40% and dividend payout ratio of 30%

 

• Manage financial, market, geopolitical, and other risks while responding to uncertainties

 

<Note-1>    Assumed average exchange rate during the period of the mid-term business plan: USD = 135 JPY
<Note-2>    As export products from Japan account for 15% of the AFB in North America and they offset foreign exchange reserves with the imported fruit, vegetable and the other products, the actual impact caused by USD/JPY exchange rate fluctuations on our business is minimal (*3)
<Note-3>    As the mid-term business plan will be fixed and unchanged for three years, the next mid-term business plan (2027-2029) will be announced in 2026 or later (*4)
 

(*1)     Including M&A transactions which are currently planned and under implementation
(*2)     Cash and cash equivalents at the end of 2023 are expected to be 100 billion yen
(*3)     Excluding the impact of conversion of financial statements of foreign subsidiaries resulting from exchange rate fluctuations on consolidated results
(*4)     Plans will be revised and announced as deemed necessary due to major changes in the business environment
 

In addition to expansion of existing sales channels and PB production, we will accelerate growth and eliminate redundancy through data-driven management based on visualization, investments to save labor in logistics , and commit to achieve a sales of 500 billion yen and operating income of 25 billion yen in 2026
 

* Including only scheduled M&As.

   Un-planned M&As are additional opportunities to be overlayed.
 

Strategic investment framework of 100 billion yen to be invested in the follow three areas

 

1. M&A and JVs to gain presence in unexplored regions within the AFB business, upfront investments in products/resources for which there are potential concerns regarding supply shortages in the future, investments to improve in-house production capability such as R&D and RTE products development, upfront investments in upstream areas where expansion is expected in the future such as plant-based seafood/meat and land-based aquaculture.
2. Investments in overseas production and sales of Japanese fruits and vegetables holding exclusive cultivation rights
3. Investments in the food industry solutions business and domestic/international food technology (including the acquisition of startup businesses with synergy).
    

• Fundamental Policy

       At the Tokyo Exchange's Prime market, balance the proactive investments to expand business and stable dividend in order to achieve               sustainable growth with healthy financial foundation