GROWTH 2016: Medium-term Management Vision

The Nichirei Group formulated GROWTH 2016, a medium-term management vision, incorporating the growth strategy concepts of its core business companies, in an effort to achieve sustained growth. We are formulating and implementing the next medium-term business plan (FY2014-FY2016), based on GROWTH 2016, and endeavoring to enhance the enterprise value of the Nichirei Group.

Summary

1. Group Policy

Nichirei will optimally allocate the Group’s management resources, maintain and enhance the earnings capacity of core domestic businesses while strengthening overseas businesses, and expand the earnings base for the corporate Group. In FY2016, marking the 70th anniversary of Nichirei’s founding in December 2015, we will apply our exceptional business characteristics, including outstanding foods and a logistics network, to achieve steady growth in every business domain, both domestically and overseas, and further enhance our presence as a corporate group.

2. Basic Group Strategy

Nichirei’s four main areas of business development, based on the Group’s basic management principles, are in processed foods: “In pursuit of the seven fundamental values* of processed foods”; marine products, meat and poultry products: “Offering superior food materials in the most appropriate form”; the logistics business: “Maintaining a food distribution infrastructure with optimal quality”; and in the biosciences business: “Exhibiting our strengths in diagnostic pharmaceuticals and culture medium products.”

Of these four business domains, we will particularly focus the allocation of management resources on the processed foods and the logistics businesses, in order to enhance the Group’s earnings capacity and generate growth potential.

  • * The seven fundamental values are: health, enjoyment, ease and convenience, good taste, safety and reliability, stable supply, and reasonable price.

3. Group Management Targets

(1) Overall Group Targets (Consolidated)

* Figures are rounded.

  FY2016 (Targets) FY2011 (Results *)
Net Sales 530 billion yen 454.9 billion yen
Overseas Net Sales At least 50 billion yen 31.7 billion yen
Operating Income 22 billion yen 16.2 billion yen
Operating Profit Margin At least 4% 3.6%
Net Income 12 billion yen 7.9 billion yen
Earnings per Share (EPS) At least 40 yen 26.3 yen
Return on Equity (ROE) At least 8% 6.8%

(2) Targets by Business Segment (Consolidated)

Processed Foods
Unit: 100 million yen
  FY2016 (Targets) FY 2011 (Results *)
Net Sales 2,000 1,742
Operating Income 85 52
Marine Products
Unit: 100 million yen
  FY2016 (Targets) FY 2011 (Results *)
Net Sales 800 657
Operating Income 12 2
Meat and Poultry Products
Unit: 100 million yen
  FY2016 (Targets) FY 2011 (Results *)
Net Sales 840 756
Operating Income 10 5
Logistics
Unit: 100 million yen
  FY2016 (Targets) FY 2011 (Results *)
Net Sales 1,800 1,495
Operating Income 90 74
Biosciences
Unit: 100 million yen
  FY2016 (Targets) FY 2011 (Results *)
Net Sales 36 25
Operating Income 6 3
Real Estate
Unit: 100 million yen
  FY2016 (Targets) FY 2011 (Results *)
Net Sales 50 49
Operating Income 21 24
  • * Figures do not include other, corporate, or eliminations.