Medium-term Business Plan

Medium-term Business Plan "Compass × Growth 2027"

"Compass × Growth 2027" expresses the Nichirei Group's desire to achieve growth as an indispensable presence in society by enhancing social and economic value, which was addressed in the previous medium-term business plan "Compass Rose 2024" toward the realization of the new long-term management goal "N-FIT 2035".

Notice Concerning Changes in Financial Targets under the Medium-term Business Plan "Compass × Growth 2027"

Medium-term Business Strategy

Strengthening profitability and improving capital efficiency
1. Deepening areas of competitive advantages and leveraging Group synergies Processed chicken products and rice products / Logistics platform for frozen foods Integration of foods business	We will establish a firm position in Japan by setting and promoting profit drivers, which are the strategic categories, such as processed chicken products and rice products, in the Foods Business and the logistics platform for frozen foods in the Temperature-controlled Logistics Business. In addition, we will demonstrate Group synergies through the foods business integration and ensure improved profitability.
2. Overseas business expansion based on regional strategies Europe, ASEAN, and North America	We will pursue organic and inorganic business growth in Europe, ASEAN, and North America.
3. Promoting human capital management and developing global governance, etc. Securing and developing human resources / Employee engagement Establishment of regional supervisory function	Promoting human capital management and developing global governance, etc. as a base for supporting sustainable growth.

Financial and Non-financial Targets

Financial Targets

(Billion yen)

	FY2027 Targets	Compared to FY2024 Results
Net Sales	777.3	75.2
Overseas sales ratio	30.4%	6.8pt
Operating Profit	45.2	6.9
Operating Profit/Net Sales	5.82%	0.3pt
Profit Attributable to Owners of Parent	32	7.3
EPS*	127.7	30.4
EBITDA	71.2	8.6
ROIC	8% or higher	－
ROE	10% or higher	－

*EPS : As of April 1, 2025, a stock split was executed at a ratio of 2 shares for each common share. Therefore, it is assumed that the stock split took place at the beginning of the fiscal year ended March 2025 for calculation purpose.

Non-financial Targets

	FY2027 Targets
Employee engagement score	75pt
Human capital expenditures	¥ 1.53 billion
CO2 emission reduction rate (Scope1+2)	-27%
Renewable energy rate	53%
Net sales of products and services that create added value for people’s mental and physical health and for the global environment	¥ 80.0 billion

Financial Strategy (Cash Allocation and Capital Investment Plan)

Operating cash flow will be allocated to investments in core businesses for future growth and shareholder returns.
The D/E ratio is targeted at 0.5x from the perspective of financial soundness and capital efficiency, while leveraging and making effective use of debt when the need for large-scale fundraising arises due to inorganic growth.
Regarding our capital investment plan, we will make aggressive investments overseas to increase profitability. In Japan, we will continue to invest in growth to strengthen the core of our foods and temperature-controlled logistics businesses, as well as in environmental initiatives that promote sustainable management.
We will implement strategic investments to facilitate inorganic growth overseas in order to accelerate global expansion.

$Cash in Operating CF \152.2 billion Increase / decrease in borrowings, etc.　Cash out Capital expenditures \139.4 billion Shareholder returns \36.5 billion or more M&A and other growth strategic investments 30 to 50 billion$

Breakdown of Capital Expenditures by Location

(Billion yen)

	Three-year cumulative total
Japan	84.4
Overseas	54.9
Total	139.4

Breakdown of Capital Expenditures by Purpose

(Billion yen)

	Three-year cumulative total
Growth investment	76.6
Environmental measures	11.2
Others	51.5
Total	139.4

Targets and Strategies by Segment

Financial Targets

(Billion yen)

Segment	Net sales		Operating profit
Segment	Net sales	Compared to FY2024 Results	Operating profit	Compared to FY2025 Results
Foods business	447.5	13.6	22	0.7
Temperature-controlled logistics business	340	61.7	22.6	6.9
Real estate business	5	-0.2	2	0.1
Other	5	-1.5	0.5	-0.6
Adjustments	-20.2	1.6	-1.9	-0.2
Total	777.3	75.2	45.2	6.9

Strategies by Business Segment

Foods business (processed foods business and marine, meat and poultry products business)

Accelerate the establishment of procurement and sales functions to realize group synergies through the integration of the processed foods business and the marine, meat and poultry products business.
[Japan] Concentrate resources in strategic categories and restructure the sales composition by business type.
[Overseas] Strengthen the foundations of existing businesses and create opportunities for inorganic growth.

Temperature-controlled logistics business

[Japan] Develop a business infrastructure for the next generation and strengthen profitability.
[Overseas] Prepare for sustainable growth of European business and rapid expansion of ASEAN business.

Other businesses (Bioscience business)

Strengthen the development of reagents in the growing molecular diagnostics business and expand global sales.
Strengthen product competitiveness of infectious disease antigen test kits and establish a production system for stable supply.

Shareholder Returns

To maximize shareholder value, we have changed our dividend policy to implement progressive dividends with a lower limit of Dividend on Equity (DOE) of 4.0%.

Shareholder Returns

Shareholder returns under medium-term business plan periods

	Compass × Growth 2027	The previous medium-term business plan results
Dividends paid	\ 36.5 billion or more	\ 24.6 billion
Treasury stock purchased	－	\ 15.0 billion
Total return ratio	－	56%