Medium-term Business Plan
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||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.|
|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||-|
|ROE||11.7 %||10 % or higher|
|EPS||149.7 yen||164.9 yen or higher|
* EBITDA = Operating profit + Depreciation expense (including lease, excluding goodwill)
- 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
Focus on R&D and new business development, and work to create new growth drivers
Secure financial soundness to support proactive investment, and maintain ROE at 10 % or higher.
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.
- 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.
- 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