Medium-term Business Plan

“WeWill 2021”

Considering the mounting instability in the global economy, we expect fluctuations in exchange rates, raw material prices, and energy costs to continue. In Japan, we anticipate the diversification of consumption patterns brought about by changes in family composition and lifestyles, while various costs continue to rise amid labor shortages.

Under the new business plan, while accurately gauging the changes in the operating environment, we aim to realize sustainable profit growth and the creation of new value that supports a good dietary life and health, underpinned by capital expenditures to drive growth and strengthen the business foundation especially in the processed foods and logistics businesses.

Coined word “WeWill” is the theme of Nichirei’s present medium-term business plan. It represents plan initiatives and our strong intention to create our own future.

General Strategy

Sustainable Growth from Raising Profitability in Japan and Expanding Overseas Operations

1. General Strategy

General Strategy Main Measures
(1) Realize sustainable profit growth
In Japan Raise profitability in Japan by strengthening the management foundation and transforming the business structure. i. Continued growth in Processed Foods, and steady expansion in Logistics.
ii. Allocate resources to further strengthen competitiveness in mainstay businesses.
・Growth investments in Japan and overseas
・Investments to strengthen foundations, including environmental measures
iii. Reinforce efforts to develop new businesses, conduct R&D, and reform businesses
Overseas Accelerate the expansion of scale in overseas operations.
(2) Improve capital efficiency and expand shareholder returns Maintain ROE of 10 % or higher, revise dividend standard.
(3) Create new value that supports a good dietary life and health Help communities deal with issues they face through our businesses.

2. Consolidated Target Figures

(Billions of yen)
FY19/3 Results FY22/3 Business Plan Variance Annual Average Growth Rate
Net sales 580.1 657.0 76.9 4.2 %
Overseas sales 79.2 102.3 23.1 8.9 %
Operating profit 29.5 35.0 5.5 5.9 %
Operating profit/net sales 5.1 % 5.3 % 0.2 pp -
Profit 19.9 22.0 2.1 3.3 %
EBITDA* 47.0 57.6 10.6 7.0 %
ROE 11.7 % 10 % or higher
EPS 149.7 yen 164.9 yen or higher

* EBITDA = Operating profit + Depreciation expense (including lease, excluding goodwill)

Investment Strategies

1. Proactive Capital Investments to Strengthen Competitiveness

  • Growth investments in Japan and overseas
  • Continue investments to strengthen foundations, including long-term use of facilities and greater efficiency, and environmental measures
  • Strengthen measures for operational reforms

2. Strengthen Measures for a Long-term Perspective

Focus on R&D and new business development, and work to create new growth drivers

Capital Expenditures Plan
Capital Expenditures in Each Business Plan

Financial Strategy

1. Financial Soundness

Secure financial soundness to support proactive investment, and maintain ROE at 10 % or higher.

2. Expanded Shareholder Returns

Revise dividend standard aiming for 3.0 % DOE (dividend on equity) and maintain stable dividend.
Consider flexible stock buy-backs based on medium-term outlook for business environment and financial condition.

Strategies by Segment

Absorb the increase in depreciation stemming from capital investment, and strategic costs such as research and development, and secure earnings growth of around 6 % annually over the plan period, with 7 % growth in EBITDA.

  • Processed Foods: Increase earnings through expanded sales in Japan and overseas.
  • Marine Products, Meat and Poultry: Secure stable earnings.
  • Logistics: Steady earnings growth from expanded cargo collections
  • Real Estate: Earnings decline due to renovations of certain leased buildings.
  • Adjustments: Increase in strategic costs such as R&D and IT systems.
Operating Profit, Depreciation and EBITDA
Target Figures by Segment


The Nichirei Group, based on its CSR policy the Nichirei Pledge, through efforts to create new value that supports a good dietary life and health, aims to contribute to solving social problems and makes communities more sustainable.

  • Create new customer value
  • Provide safe foods and services
  • Build a sustainable supply chain
  • Reduce the environmental load and respond to climate change
  • Enhance corporate governance