2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Our Value Creation Strategy
At Calbee, we aim to establish overseas markets and new food domains as core pillars of growth by 2030. Our long-term ambition is to become one of the top three snack makers globally and the undisputed No. 1 in Asia. To continuously strengthen our ability to create value, we have positioned sustainability at the core of our management approach and are advancing initiatives aligned with our priority materiality issues.
Results for FY2025/3
Consolidated net sales
¥322.6 billionConsolidated operating profit
¥29.1 billionROE
10.5%EBITDA
¥43.5 billionBreakdown of Net Sales*1
Breakdown of Overseas Net Sales
by Region*1
Domestic snacks 63%
Domestic cereals 8%
Other domestic 5%
Overseas snacks 23%
Overseas cereals 2%
Europe/Americas*2 47%
Asia/Oceania*3 53%
*1 Calculated using net sales before rebates and other deductions
*2 Europe/Americas: North America, United Kingdom, and others
*3 Asia/Oceania: Greater China, Indonesia, South Korea, Thailand, Singapore, Australia, and others
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Corporate Philosophy
We are committed to harnessing nature's gifts, to bringing taste and fun, and
to contributing to healthy life styles.
Value Provided to Stakeholders
Great taste and fun for all generations • An inclusive and fulfilling environment
Sustainable and collaborative use of where all employees thrive
nature's bounty • Continuous growth and establishment of new revenue base
Expansion of new domains
Food and Health
Agri-business
Change 2025
Business structure transformation toward the next stage of growth
(FY2024/3 to FY2026/3)
Enhance profitability of core business
Transform business portfolio
Reinforce business foundation
Expansion of overseas business
Market domains
Key Issues for Long-Term Value Creation (Materiality)
Contributing to health and • Co-creation of a sustainable supply chain diverse lifestyles • Caring for the earth
Progress of sustainable • Promoting Active Roles for All Employees agriculture based on diversity
Overview of Our Value Creation Strategy
Expanding Markets and Business Domains Where Calbee Provides Value Calbee has built a unique value chain that extends from the development of natural raw materials all the way to consumers. We make full use of our management resources to create products that taste great, are fun, and contribute to healthier lifestyles. In today's rapidly changing environment, however, sustaining growth requires us to address increasingly important natural capital as well as global challenges such as climate change and consideration for human rights.
Business domains
In response to changes in our operating environment and the key challenges we face as a company, our three-year growth strategy, Change 2025, focuses on reforming our business structure to drive the next phase of growth. We will reinvest cash generated by enhancing profitability in our domestic core business in overseas expansion and new food domains, with the goal of building a business portfolio that delivers sustainable growth. We aim to foster an inclusive environment where diverse talent thrives, bring the great taste and joy of food to all generations, and promote co-creation that harnesses the bounty and richness of nature to pass on to the next generation. In this way, we will further enhance the value we provide to stakeholders.
Under the continued guidance of our corporate philosophy, we will place sustainability at the core of our management and expand the markets and business domains where we create value, aiming to sustain growth well beyond our 100th anniversary milestone.
Short term
Enhance profitability of core business
DX strategy
Shift focus from volume growth and increase added value by strengthening brands
Optimize marketing, operations, and supply that utilize DX (S&OP)
Build foundation for next-generation factories
Medium to long term
Transform business portfolio
Identify fields with significant growth opportunities for the medium to long term and proactively invest resources (staffing, funds, capital expenditures, etc.)
Expand overseas development of brands of Japanese origin
Reinforce business foundation
Sustainability management
Organizational and human capital strategy
Financial strategy
Focus on Food and Health business and agri-business
Optimize investment in growth while ensuring financial soundness
Build human capital base for the next generation
Advance and evolve sustainability management
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Overview of Value Creation Strategy
Management Resources Driving Our Value Creation
Type of capital
Management resources
Key issues
Response policy
Value created (outcome)
Financial capital
Manufacturing capital
Intellectual capital
Stable operating cash flow
Approx. ¥80 billion allocated for investment in growth
17 domestic production sites located in consumer areas in Japan
Domestic facilities capable of processing imported potatoes
12 overseas production sites
Proprietary processing technology that takes advantage of natural ingredients
Expertise related to raw materials
Expertise in improving productivity
Long-selling products familiar to and loved by multiple generations
Proactive investment and financing to execute growth strategies
Improving asset efficiency and use of financial leverage
Ensuring food safety and security
Increasing supply capacity at domestic and overseas factories, advancing automation and labor-saving measures
Providing new value in response to diversifying consumer awareness
Expand processing technologies and product development capabilities overseas
Acquiring technologies and expertise in new fields
Improve earnings quality while maintaining a sound financial position
Value provided to stakeholders
Great taste and fun for all generations
Sustainable and collaborative use of nature's bounty
An inclusive and fulfilling environment where all employees thrive
Continuous growth and establishment of new revenue base
Ensure appropriate shareholders returns
Increase added value by enhancing brand, and optimizing sales, operations, and supply chains
Build foundation for next-generation factories in Japan
Social value
Sales of salt-free/low-salt/reduced-salt products (compared with FY2023/3)
120.5%
Sales of protein-rich products (compared with FY2023/3) 116.0%
Food communication participants
120,430 people
Adoption rate of low-phosphate fertilizer
30.7%
Potato procurement in Japan
371,000 tonnes
Ratio of women in management 24.8%
Improve efficiency of existing facilities overseas
Deploy knowledge and experience nurtured in Japan globally
Develop business and drive expansion using business alliances, M&As, etc.
Human capital
Social and relationship capital / Natural capital
Employees active in 12 countries and regions including Japan
Flat and open corporate culture
Collaborative ties with production regions, growers, governments, universities, and others
Development of new potato and sweet potato varieties
Shifting away from mindset and complacency
Increasing the number of employees who step beyond their own boundaries and take initiative
Securing sufficient core talent to enhance corporate value
Sustainable raw material production and responsible procurement practices that respect the environment and human rights
Conservation of natural capital
Initiatives to achieve carbon neutrality, reducing the environmental impact of plastics, and promoting a circular economy
Foster an organizational culture where everyone can take on challenges, supported by HR system reforms, career autonomy programs, and core talent development
Promote DE&I management, pass down Calbee's philosophy and DNA, and promote mental and physical health
Promote raw material procurement that respects human rights and natural capital
Support contracted growers during harvest time
Economic value
Consolidated net sales ¥322.6 billion
Consolidated operating profit
¥29.1 billion
Operating cash flow ¥39.1 billion
ROE 10.5%
(FY2025/3)
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Transitions in Business Strategy
(Billions of yen)
400
Domestic net sales (left) Overseas net sales (left)
Operating profit margin (right)
(%)
12
300
9
200
6
100
3
0
FY2012/3 FY2013/3 FY2014/3 FY2015/3 FY2016/3 FY2017/3 FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3* FY2023/3 FY2024/3 FY2025/3
0
Domestic core business growth driven by volume expansion
Growth limited by domestic capacity constraints
Earnings base strengthened through business structure transformation
* The revised Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) has been applied from the beginning of FY2022/3. As a result, the method of accounting for rebates and other items as selling, general and administrative expenses has been changed to a method of deducting these items from net sales.
First Stage (FY2012/3 to FY2017/3)
Second Stage (FY2018/3 to FY2023/3)
Third Stage (FY2024/3 Onward)
Domestic
Strengthened sales and improved utilization at previously underperforming factories, resulting in significant improvement in profitability
Overseas
Proactively expanded into nine countries and regions, driving rapid sales growth
New
Exploration of new domains
Strengthened profitability through measures such as price and product specification revisions in response to unprecedented cost increases, and expanding strategic partnerships with distribution partners. However, earnings remained flat due to factors such as lower potato harvest yields caused by climate change and the COVID-19 pandemic
Domestic
Overseas
Designated four key regions and expanded sales through focused resource allocation and M&A
New
Entry into the sweet potato business (April 2020)
Earnings increased due to enhanced brand equity, strategic product price and specification revisions, and activities to improve profitability of individual SKUs
Domestic
Overseas
Achieved sales growth, the top priority across our portfolio
New
Expanded recognition of Body Granola in the Food and Health business. Decided to enter into the frozen foods business in the agri-business
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Overview of Change 2025
Our Growth Strategy: Change 2025
Through Change 2025, we aim to transition to a new profit structure that will lead to sustainable growth. To achieve this, we are implementing structural reforms focused on three pillars of growth: enhancing the profitability of our core business, transforming our business portfolio, and reinforcing our business foundation.
To enhance the profitability of our core business, we are strengthening our brand equity in order to create added value, and leveraging DX to optimize marketing, operations, and supply. Through our next-generation factories, we are also increasing productivity, reducing our environmental impact, and improving work environments.
In transforming our business portfolio, we are concentrating our management resources in areas with high growth potential. Overseas, we are strengthening already established brands that address local needs and preferences, while expanding the reach of our brands of Japanese origin. At the same time, we are advancing into new areas through our Food and Health business and agri-business.
To strengthen our business foundation, we are pursuing optimal investments for growth while ensuring a sound financial position. We are also working to achieve sustainable management by strengthening our organization and talent, and by addressing key sustainability issues.
The status of our progress on Change 2025 for FY2025/3 is as follows.
Growth Guidance
FY2024/3 results | FY2025/3 results (average over 2 years) | Growth guidance (3 years) | |
Organic net sales growth rate | +8% | +7% | +4-6% |
Consolidated operating profit growth rate | +23% | +14% | +6-8% |
ROE | 10.9% | 10.5%*1 | 10% or higher |
Main KPIs | FY2025/3 results | Growth guidance | |
Domestic operating profit growth rate | FY2024/3 results +22% | (average over 2 years) +15% | (3 years) +6-8% |
Overseas sales ratio | 24% | 25%*1 | 30-35%*2 |
New areas sales ratio | 4.3% | 4.3%*1 | 5%*2 |
*1 FY2025/3 *2 As of FY2026/3 |
Progress to Date and Policy Going Forward
While initiatives to enhance the profitability of our core business are yielding results, we continue to face challenges in transforming our business portfolio. We are now advancing our efforts to fully deliver on the goals of Change 2025.
In enhancing the profitability of our core business, we have strengthened the competitiveness of our brands through effective marketing initiatives, and improved collaboration across the organization with the introduction of the region-based system. This enabled us to grow our sales volume even after revisions to product pricing and specifications. Through our DX strategy, we improved earnings by approximately ¥1 billion in FY2025/3 as a result of being able to visualize profit and loss for each SKU. To promote the next phase of growth, we will focus company-wide on enhancing our brand power and further advancing DX, including at overseas locations.
Meanwhile, in transforming our business portfolio, our region-based system has enabled greater delegation of authority, accelerating decision-making and execution. While driving sales growth in our overseas business, however, our overseas sales ratio in FY2025/3 remained below our initial guidance at 25%. To achieve our goal of becoming one of the top three snack makers globally and the undisputed No. 1 in Asia, we are deploying top talent from Japan internationally, proactively investing in marketing and our facilities, and pursuing growth opportunities including M&As. Our goal is to accelerate our sales growth even further.
In new areas, we are developing and expanding into business domains to promote medium- to long-term growth, including by raising recognition of Body Granola and improving earnings in the sweet potato business.
When it comes to strengthening our business foundation through initiatives related to our organization and talent, we are preparing to launch a new human resources system from April 2026 under our Active Roles for All Employees policy. Our aim is to encourage diverse talent to contribute and grow in order to execute on our growth strategy.
In terms of our financial strategy, we are now transitioning to management based on ROIC from FY2026/3, in order to place greater emphasis on business growth and the creation of added value. At the same time, to lower our cost of capital, we plan to implement effective capital policies such as an optimal capital structure.
In sustainability management, we are working to expand the cyclical model of addressing social issues and creating economic value, including through collaboration with JA Shiretoko Shari to secure a stable supply of potatoes.
Going forward, we will continue to solidify our domestic business as our foundation for growth and accelerate the growth of our overseas business, while promoting the development and expansion of new business areas. Through these efforts, we aim to achieve the targets of Change 2025 and realize sustainable growth.
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Strategy for the Domestic Core Business
Establishing an organizational framework to address internal and external environmental changes and enhance profitability
Akira Imoto
Director, Senior Managing Executive Officer & CPO, President of Calbee Japan Region
Three Key Reforms to Enhance Profitability
In our domestic core business, we are shifting our focus from volume expansion to enhancing profitability by advancing company-wide marketing reforms, profit structure reforms, and sales transformation.
Through our company-wide marketing reforms, we are shifting back to a consumer-centric perspective, with the goal of providing products with real value. To embed this approach throughout the Company, we are strengthening specialist training for marketers to enhance our strategic planning capabilities, while encouraging closer collaboration between product brands.
Central to our profit structure reforms is our S&OP*1 system being developed under our DX strategy. We are building our value chain optimization system, C-BOSS,*2 to run simulations to enhance the efficiency of all our processes, from raw materials to sales. Furthermore, by visualizing past performance, we can now assess profitability at the SKU level. In FY2025/3, we
Steady Progress on Addressing Issues
Across our upstream supply chain, challenges such as climate change, labor shortages in farming, environmental impact, and biodiversity considerations are becoming more evident. The key challenge we face is how do we address these agriculture-related issues while ensuring a stable supply of potatoes. To hedge risks, we are expanding production areas and importing potatoes from overseas. In parallel, we are stabilizing supply by adjusting transaction prices in line with changes in cultivation costs, and through measures such as reducing workloads to sustain motivation in farming operations.
On the downstream side, competition is intensifying against a backdrop of inflation. We are responding by expanding our lineup of products for cost-conscious consumers, while promoting activities to build greater brand recognition. This includes highlighting Calbee's distinct commitments, such as careful attention to raw materials and manufacturing, and environmental responsibility.
To establish a foundation for next-generation factories, we launched operations at the Setouchi Hiroshima Factory, our state-of-the-art mother factory, in January 2025. With an annual production capacity of approximately ¥28 billion, it is capable of producing potato chips, Jagabee, and wheat-based snacks. This new facility combines advanced environmental performance with automation that leverages DX technology, improved productivity through labor savings, and an
improved work environment. In addition, in the Kanto region, we plan to construct a new factory in Shimotsuma City, Ibaraki Prefecture, and begin operations in FY2029/3. In transferring functions of the existing Shimotsuma Factory (Shimotsuma City, Ibaraki Prefecture) to the new facility, we will increase our production capacity in undersupplied product categories. These initiatives will help optimize the supply-demand balance between regions across Japan and strengthen our supply chain efficiency, aiming to enhance both profitability and competitiveness.
succeeded in improving earnings by approximately ¥1 billion through initiatives such as revising pricing and processes for low-margin items or by eliminating them altogether. Going
Snack Net Sales
[+5% YoY]
Cereal Net Sales (Domestic Consumption)
[+14% YoY]
forward, we will broaden the scope of these measures and make further improvements.
The core focus of our sales transformation initiative is to improve productivity within our sales division by optimizing support staff allocation. We will narrow our focus to key items, promoting sales areas in coordination with marketing initiatives, while considering how to increase the brand value of our staple products as part of planning. Furthermore, we are revising the allocation of roles within the sales division and promoting a shift to more creative operations, such as proposing improvements to consumers based on data analysis.
*1 S&OP: Sales and Operations Planning
(Billions of yen) (Billions of yen)
240
180
120
60
30
20
10
Other snacks +10%
Corn- and bean-based snacks
-1%
Wheat-based snacks +3%
Jagabee/Jaga Pokkuru +14%
JagaRico +6%
Potato chips +5%
Others +14%
Less carbs +15%
Original +13%
*2 C-BOSS: Calbee Business Optimization Simulation System
0 FY2024/3 FY2025/3
0 FY2024/3 FY2025/3
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Strategy for Overseas Business (Europe/Americas)
Keiei Sho
Director, Senior Managing Executive Officer & CSO, President of Calbee Europe & Americas Region
Expanding our presence and driving innovation to boost
our recognition in local markets
Building a Foundation for Growth across Multiple Fronts
The keys to future growth in Europe and the Americas are expanding our market presence and driving innovation. To broaden our presence, we will invest in raising awareness of Calbee products, and strengthen the organizations and functions that support our retail channels. On the innovation front, we will focus on the "Better For You" category in response to rising health consciousness. To become the leader in this space, it is essential we enhance our organizational capabilities and product development systems in order to broaden our lineup.
In North America, we are expanding our lineup of Harvest Snaps, our flagship brand in the "Better For You" category. We are steadily building brand recognition by developing products tailored to local market preferences, such as Crunchy Loops and Crunchy Puffs, as well as launching products that broaden our target audience, such as Harvest Snaps Kids. At the same time, we are strengthening the presence of Calbee's brands of Japanese origin, including Kappa Ebisen and JagaRico. Supported by rising interest in Asian food culture, these brands are gaining greater visibility in Asian grocery stores and Asian food sections in major U.S. retail chains. In the United Kingdom, we will continue to grow the Seabrook
Positioning the North American Market as a Global Growth Driver
Our external operating environment in FY2026/3 has become increasingly uncertain. Rising prices are dampening purchasing frequency, and we are closely monitoring the impact this is having on our strategic Harvest Snaps brand, as well as our brands of Japanese origin. In North America, potential changes in U.S. tariff policies are also a concern. However, given the fluid nature of the situation, we believe moving hastily could cause unnecessary disruptions, and we will therefore monitor the situation closely and respond appropriately.
Against this backdrop, our strategy for the Europe and Americas markets is to expand our presence in the "Better For You" category and Asian-style snacks, while stabilizing earnings. We have positioned North America in particular as a priority market going forward, and will concentrate our management resources there, including capital investment and personnel with expertise gained in Japan. Using the cash generated by improving the efficiency of our Harvest Snaps production system, we will invest in raising awareness of products in the "Better For You" category and brands of Japanese origin, and strategically allocate capital to strengthen our production system. By developing a stronger base to drive sales, we aim to accelerate top-line growth.
To achieve our goal of becoming one of the world's top three snack makers, we will further pursue investments in inorganic growth opportunities, such as M&A, in close cooperation with Head Office corporate divisions. Equally important will be fostering a culture in which everyone involved in the overseas business recognizes the central role they play in our growth strategy and works together as a team.
brand, which enjoys high recognition in certain areas of the country, while promoting our brands of Japanese origin and products in the "Better For You" category.
To increase sales in both categories, we believe that, rather than relying on imports from
North America Net Sales
(Local Currency Basis)
[+14% YoY]
United Kingdom Net Sales
(Local Currency Basis)
[+3% YoY]
Japan, we have to establish the capabilities to respond quickly to local market and consumer needs. This includes enhancing our local R&D functions and production systems. In addition, as our business grows in scale, we must further reinforce our corporate functions, including supply chain management, finance, and human resources. Therefore, we will focus investments not only on facilities but also on people.
(Millions of U.S. dollars) (Million pounds sterling)
200
150
100
50
80
60
40
20
Private label/OEM -1%
Brands of Japanese origin +61%
Harvest Snaps +11%
0 FY2024/3 FY2025/3 0 FY2024/3 FY2025/3
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Strategy for Overseas Business (Asia/Oceania)
Promoting timely and flexible measures that take into account the business environment and challenges in each region
Teiichiro Morioka
Managing Executive Officer, President of Calbee
Asia-Oceania Region
Promoting Strategies Aligned with Challenges in Each Region
In the Asia and Oceania region, which is home to a diverse mix of people and food cultures, our guiding principle is to bring joy to people, regardless of where we are. To achieve this, we focus on understanding the unique characteristics of each market, while respecting its people and cultures. In addition, it is important to enjoy local food cultures ourselves as well. When faced with uncertainty, we return to these fundamentals.
On the other hand, since the level of social and economic development differs from region to region, our task is to assess their respective characteristics and issues, and respond to them appropriately. In the Greater China region, where geopolitical risks are a concern, our policy is to mitigate these risks by enhancing our distribution capabilities to retail stores and promot-
Achieving Growth in Each Region while Strengthening Our Common Foundation
Going forward, we will steadily implement strategies and measures tailored to our operating environment in each region. In China, where the outlook is becoming increasingly uncertain, we will avoid high-risk equity investments, and instead seek to expand local production and consumption through alliances with local partners. In Thailand, where labor costs are rising, we wil streamline our production sites, while leveraging its geographic location to further strengthen its role as a production hub for the ASEAN region. As Indonesia continues to experience economic growth, we expect the competitive environment to become more intense and raw material costs to rise sharply, and will make steady efforts to enhance our competitiveness.
While responding to the various challenges of each region to ensure stable growth, we will also address common issues throughout Asia and Oceania. One such issue is the stable procurement of potatoes, a key raw material in every market, particularly in Indonesia, where national policy emphasizes food and resource self-sufficiency. To address this, we will leverage the knowledge and expertise we have cultivated in Japan to assess how we can create a framework that improves the quality and quantity of the potato supply system.
Furthermore, as the Group advances its global expansion, unifying our brands across every region, including in Europe and the Americas, will be essential. We see this as another important objective in our region. Guided by our policy of growing the Calbee brand to contribute to the health and well-being of people around the world, we will continue to drive initiatives aimed at turning Calbee into one of the top three snack makers globally and the undisputed No. 1 in Asia.
ing local production for local consumption. To this end, we are strengthening our production capacity and improving quality assurance systems at OEM manufacturing partners, and concentrating on strengthening our sale divisions, which are responsible for sales promotion. In
Greater China Net Sales
(Local Currency Basis)
[-12% YoY]
Indonesia Net Sales
(Local Currency Basis)
[+15% YoY]
Thailand and Indonesia, which have local production sites, we will make use of our competitive advantages in quality and cost, aiming to grow sales both in local markets and exports. Particularly in Indonesia, where the market is growing rapidly, we plan to strengthen our potato chip production lines and optimize our production lines for the multi-layered snack GuriBee. These steps will increase supply capacity and support potential future expansion into other countries. In Oceania, where health consciousness is increasing along with Europe and the Americas, we will focus on the "Better For You" category, and work to increase recognition of our Harvest Snaps brand, including our new product Scoopers.
(Millions of RMB) (Billions of Indonesian rupiah)
Retail store: Cereals +34%
1,000
750
500
250
1,200
800
400
Retail store: Snacks +8%
E-commerce: Cereals -24%
E-commerce: Snacks -68%
0 FY2024/3 FY2025/3 0 FY2024/3 FY2025/3
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Financial Strategy
Balancing investments in growth and shareholder returns to sustainably enhance corporate value
Kazuhiro Tanabe
Executive Officer, CFO, CDXO and General Managing Director of
the Finance Division
Our Financial Health and Challenges
I believe Calbee's products bring small moments of joy to our consumers' everyday lives, and it is their continued support that defines our corporate value. Long-time favorites like potato chips and Frugra have created a stable earnings structure that resembles a subscription model: their quality and taste drive repeat purchases, while word-of-mouth attracts new consumers, resulting in steady recurring profits. This stability enables us to deliver dependable dividends, strengthen retained earnings, and establish a robust and healthy financial foundation.
In the domestic market, our brand power and solid business fundamentals, from supply chain to marketing and sales, serve as a foundation that ensures both business stability and reliable profitability. Overseas, our businesses are now at last establishing the footholds
Formulating Our Financial Strategy Policy and Plan
I joined Calbee in July 2023 at the invitation of CEO Makoto Ehara to assume the role of CFO and help drive the Company's growth. I view it as my responsibility and purpose to drive Calbee's growth through a robust financial strategy. From the outset, I've firmly believed that without enhancing our financial strategy, Calbee cannot achieve sustainable growth. In the past, the Company emphasized a debt-free management approach and pursued cost leadership. However, as we reached the limits of our production capacity, it became clear we urgently needed to review our overall, fundamental strategy.
In May 2024, we set out a new policy to serve as the framework of our financial strategy.
Then, in May 2025, we announced a financial strategy based on "Action to Implement Management that is Conscious of Cost of Capital and Stock Price." Over this period, we conducted simulations to determine the optimal capital structure from a five- to ten-year perspective. By modeling several scenarios, we examined where, when, and how much to invest, and projected investment returns. This process enabled us to shape a clear financial strategy to support the structural transformation of our business portfolio. As a result, we have established a framework that allows management decisions to be made with full awareness of cost of capital, while maintaining a sound balance between growth investment and shareholder returns.
Financial Strategy Policy
Continuously improve corporate value
Make optimal growth investment to realize business portfolio growth
needed to also build a subscription-style earnings structure. In the Europe and Americas region, our Harvest Snaps brand in North America and Seabrook brand in the U.K. serve as core market drivers, and with a system in place to expand our brands of Japanese origin in these regions, we have built a solid platform for future growth. In the Asia and Oceania region, the Calbee brand is steadily gaining recognition, leveraging our reputation in Japan and the trust associated with Japanese quality.
To unlock the full potential of our brands and grow sustainably, we must proactively invest in expanding our production, strengthening our sales capabilities and pursuing M&A, while carefully assessing market demand. To fund these initiatives, in turn, we recognize our top priority now is to provide the strategic financial support needed to put our growth strategy firmly in motion.
Raise quality
of profit
Ensure sound financial position
Implement appropriate shareholder returns
Make investment decisions and pursue positive returns with cost of
capital in mind
Implement management that aims to improve profitability of capital
Manage financial risk and ensure fiscal soundness
Rationalize cost of capital level with optimized capital structure
Secure fund-raising methods for implementing strategy across the Company
Continuous and stable shareholder returns
Raise shareholder returns from a medium- to long-term perspective
- Implement flexible capital policy (dividend policy, share buybacks)
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Financial Strategy
Approach to Business Management Indicators
In FY2025/3, we again achieved record highs in sales and operating profit, with most of our initiatives progressing as planned. However, our overseas business, while undergoing reforms, fell short of capital market expectations in terms of the speed of growth and earnings. One of the underlying factors for this was insufficient investment in growth abroad. To address this, we have to move beyond our more cautious corporate culture shaped by past investment constraints, and instead shift to a more growth-oriented mindset, one in which our employees take more ownership, identify investment opportunities that genuinely excite them, and embrace calculated risks.
To support this transformation, we have adopted return on invested capital (ROIC) as our core management indicator. At the regional and subsidiary level, we are now using earnings before interest, taxes, depreciation and amortization (EBITDA) as our key goal indicator (KGI) and allocating appropriate resources in order to achieve our business transformation goals and advance business growth. This will enable us to move away from a management approach focused on operating profit margins to one that emphasizes growth and value creation. By designing key performance indicators (KPI) based on the ROIC tree model, we are driving alignment around key metrics and enhancing execution, while looking ahead, we are also considering introducing
Specific Plans
economic value added (EVA), calculated as Invested Capital x (ROIC - WACC), as we continue building financial literacy and investment discipline across the organization.
Investing in Growth While Delivering Shareholder Returns
Since introducing our regional business division system in April 2023, we have been able to substantially accelerate decision-making. Regional CFOs were then appointed in April 2024, and as of April 2025, we have delegated greater authority for investment decisions to them. At the corporate level, we enhanced our processes to regularly assess whether given investments are delivering expected returns. These assessment results inform future resource allocation, ensuring more effective investments.
From FY2026/3 onward, we expect funding requirements will increase, which will require even greater execution efficiency. To achieve sustainable growth toward 2030 and even 2035, we will continue to proactively make investments. At the same time, while positioning shareholder returns as one of our top management priorities, we are reviewing and enhancing our shareholder return policy in preparation for our next growth strategy. As CFO, I see it as my core responsibility to balance growth investments with shareholder returns, executing at the right timing and responding effectively to future demand for funding-all with the aim of maximizing our corporate value.
Three-Year Cash Allocation Policy and Results
Specific policies
Introduce ROIC indicators to strengthen added-value creation capabilities
Aim for cost of capital of approximately 6% by optimizing capital structure
Raise corporate value & ROE
Promote business growth by setting EBITDA as a KGI for each region and country
Raising EBITDA
Growth investment Efficiency investment Shareholder returns
Capital investment for growing domestic and overseas businesses, growth investment in new areas such as M&A
Support for ESG, capital investment in automation/labor savings, etc. to raise productivity
Aim for DOE of 4% and total return ratio of over 50%, and continually grow dividends over the medium term
ROIC
Maximize profits in the domestic core business
Investment in
Expand sales in the overseas business
and new areas
Cost investment optimization
Three-year cash allocation
Efficiency investment Shareholder returns About ¥60 billion About ¥25 billion
Growth investment About ¥80 billion
Efficiency investment
¥44.5 billion
FY2024/3 and FY2025/3
cumulative results
structural reform (efficiency/ labor savings)
Growth investment
Efficiency investment
Growth investment
¥18.2 billion
Shareholder returns
¥13.5 billion
FY2023/3 results | FY2024/3 results | FY2025/3 results | FY2026/3 plan | |
Total return ratio | 125.3% | 35.2% | 34.7% | 36.6% |
DOE | 3.8% | 3.8% | 3.7% | 3.5% |
Dividend per share | ¥52 | ¥56 | ¥58 | ¥60 |
Optimize capital investment
Reduce cost of capital
Target: Approx. 6% Net D/E ratio: 0.5
Reduce cost of capital through an optimal capital structure
Engage in dialogue and exchange opinions with investors and shareholders through IR and SR
investors, etc.)
Realize an optimal shareholder composition from a long-term perspective (retail
Optimize procurement cost through SDG financing and other means
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
31
DX StrategyKazuhiro Tanabe
Executive Officer, CFO, CDXO and General Managing Director of
the Finance Division
Working with colleagues on the ground to make Calbee more competitive and achieve our 2030 vision
DX Strategy to Realize the Calbee Dream
In April 2024, in addition to my role as CFO, I also assumed the role of Chief DX Officer. I saw this as a valuable opportunity to put into practice my belief that a CFO should work side by side with people on the ground.
I believe that for Calbee to achieve sustainable growth, it must transform its management foundation. Immediately after my appointment, I began identifying the Company's challenges. I found this process personally very energizing. Through open discussions with colleagues from divisions involved in information systems and DX, we examined root issues, considered the mindset and actions required of us as an organization, and shared our visions and dreams for the future. At the time, we were finalizing the framework of our new financial strategy, and we shared our quantitative goals for 2030 along with a clear vision of Calbee's transformation. This provided us with the momentum to broaden what had primarily been DX and IT initiatives focused on strengthening our domestic operations to a global scope,
aligned with our company-wide strategy. This also led to a greater understanding that Calbee's transformation will be driven by information and digital technologies, and DX will become part of our daily work.
To realize our vision for 2030, we drew on both our in-house expertise and input from employees in the field to identify our medium- to long-term challenges. We then mapped out concrete, phased solutions to address those challenges, resulting in a DX roadmap reflecting the aspirations of our people.
Calbee's DX efforts began around 2019 as a bottom-up initiative focused on digitization of our factories. Since April 2023, we have advanced top-down initiatives as well, including building our S&OP process, and our proprietary simulation system, C-BOSS, to optimize our supply chain. Furthermore, through our "Potato DX" initiative, we are integrating data on cultivation, harvesting, storage, inventory management, and supply and demand, leveraging AI to generate projections. Linking this to our factory DX and S&OP systems, we will optimize operations company-wide.
At the core of our company-wide DX initiatives, including "Finance and accounting DX", we are working to reduce the dependence of our work processes on individual skills and expertise. By standardizing and streamlining operations, we aim to improve productivity company-wide and foster greater innovation. Going forward, I will continue to combine the financial perspective of a CFO with the operational perspective of a CDXO, driving Calbee's growth and transformation.
The Calbee DX Strategy S&OP Initiative
Value chain optimization system (C-BOSS)
Factory DX
Enhance productivity / workstyle reform
S&OP
Maximize value creation in the value chain
Potato DX
Finance and accounting DX
Human resources DX
R&D DX
DX human resource development
Management information foundation
Visualize P/L activities to improve profit
Value chain optimization
Visualize P/L by SKU Visualize P/L by customer Optimize number of SKUs
Create SCM optimization tools Business process flow reform
Change management
Supply
Production capacity
Production cost
Overhead
Transportation route/cost
Warehouse capacity/cost
Marketing
C-BOSS
Procurement
Marketing strategy
Sales
Regular/exception-al demand
(AI-assisted demand forecasting )
Cost plan
Note: S&OP: Sales and Operations Planning
C-BOSS: Calbee Business Optimization Simulation System SKU: Stock Keeping Unit, the minimum management unit for
receiving or writing orders and managing inventories
Potato harvest quantity
Raw material yield
Raw material cost
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
DX Strategy
An Incremental Approach to 2030
Our DX roadmap prioritizes steadily improving the profitability of our domestic core business. To achieve this, we aim to develop systems that maximize the productivity of every employee. Guided by this approach, we are advancing S&OP in three phases.
Phase 1 focuses on supply chain optimization. In addition to visualizing profit and loss by SKU and by customer, through C-BOSS, we are developing a system to simulate cost-efficient production and supply plans using AI-assisted demand forecasting, an initiative we have been working on since 2021. Through continuous improvements, our AI-assisted demand projections are becoming more granular and accurate, including a better understanding of demand elasticity. In Phase 2, we focused on visualizing return on investment (ROI) in marketing and sales promotions, leveraging the knowledge accumulated through AI-assisted demand projection. We are exploring new possibilities for ROI analysis and projections in more complex marketing and sales initiatives. In Phase 3, we aim to integrate our accumulated demand forecasting data with big data such as marketing and sales ROI to develop tools that maximize salesforce productivity. This initiative, in turn, aims to help increase sales and operating profit per person. Through these three phases, we are progressing from optimizing
production to advancing our sales strategy and upskilling our personnel-charting a course to enhancing our earnings structure.
Our factory DX initiatives began with systemizing the expertise accumulated in our factories in Japan, before clarifying standardized factory DX implementation steps, and visualizing the progress at each site. In 2025, we began rolling out our DX initiatives globally, first at our Hong Kong subsidiary in February and then in Thailand in March.
Another important pillar of our DX strategy is human resource development. Today, 123 employees are involved in DX, and we plan to increase this number to 500 by 2030 through a structured certification process. We are cultivating key members in each factory to serve as hubs, enhancing on-site DX promotion structure.
At Calbee, DX is simultaneously about driving efficiency and shifting our focus to higher value-added work. We are first addressing the challenges of our domestic businesses and then extending best practices to overseas markets. Through these initiatives, we are building an environment in which employees can realize their ideal workstyles and focus on value-added work through their own initiative. In doing so, Calbee is strengthening its competitiveness and enhancing corporate value-both of which are key objectives of DX.
Roadmap to 2030
FY2024/3 FY2025/3 FY2026/3 FY2027/3 FY2028/3 FY2029/3 FY2030/3 FY2031/3
S&OP
Visualization and utilization of P/L by SKU
Ver. 2.0 Deepen retail science using big data
Towards value creation beyond companies/industries
Ver. 3.0 Sales/Marketing innovation using AI
Ver. 1.0 Optimize supply chain
Begin using C-BOSS
Global deployment of best practices
Factory DX
Begin DX from Kansai Biwako Factory
Ver. 1.0 Begin DX from local level
Application to Setouchi Hiroshima Factory
Ver. 2.0 Expand factory DX and AI utilization horizontally
Ver. 3.0 Accelerate automation initiatives
Global deployment
Strengthen base
Begin DX human resource development from local level
Begin factory DX from Hong Kong, Thailand
DX human resource development
Strengthen IT base human resources towards future growth Strengthen IT globally
Build base/enhance security
3. Innovation phase (value creation towards our centennial)
2. Transformation phase
1. DX emergence phase
Calbee AI Academy to learn AI technology and address factory challenges
Factory DX (Kansai Biwako Factory)
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Organizational and Human Capital Strategy
Sharing our vision behind Active Roles for All Employees and harnessing
the power of diverse talent to drive value creation
Yasumasa Hitomi
Executive Officer, CHRO and
General Manager of the HR & GA Division
Promoting Active Roles for All Employees
At Calbee, our people are our greatest source of value creation. In order to achieve our goal of becoming a company that can sustain growth for more than 100 years, every employee across our organizations both in Japan and overseas must be empowered to make the most of their talent and energy.
To ensure all employees share this understanding, we adopted Active Roles for All Employees as our human capital vision and set "promote Active Roles for All Employees based on diversity" as one of our material issues identified in 2022. However, without a clear definition, this concept did not fully take hold across the organization. Therefore, in June 2025, we defined it as "empowering diverse talent to use their strengths and to experience pride and joy in contributing to Calbee, to society, and to their personal growth." We have since communicated this definition with employees.
To realize this vision, we need more than a shift in employee mindsets-we must also evolve our human resource (HR) functions. One of our key priorities is to adopt a more global perspective. With Japan's population declining and domestic growth expected to slow over the long term, we must strengthen our HR capabilities in order to support business growth overseas. Traditionally, our HR policies and systems have centered on Calbee as a standalone, domestically focused entity. Going forward, we will enhance talent management-from recruitment and development through to evaluation and mobility-from both group-wide and global perspectives to sharpen our competitive advantage. With this approach, we are already laying the foundations for HR systems that support the growth of our overseas business. At the same time, we value integrating employees with diverse backgrounds and perspectives working
together to create new value. To enable this, we are embedding Calbee's management philosophy and DNA across the organization and fostering a greater sense of connection. This effort will be driven not only by HR functions, but also corporate functions including corporate planning and corporate communications.
Calbee's Definition of Active Roles for All Employees
Empowering diverse talent to use their strengths and to experience pride and joy in contributing to Calbee, to society, and to their personal growth.
Our founding spirit-the desire to help people live healthier lives by creating products that make use of underutilized food resources-remains alive today. By viewing our entire value chain as encompassing 10 processes from raw materials to stores and into the hands of consumers, we have continually enhanced our value. To deliver great taste and fun to people around the world, we highly value the following types of talent. The first are people who steadily build the future through continuous effort, ingenuity, and improvement. The second are people who pioneer the future by challenging existing frameworks. At Calbee, diverse talent who share our corporate philosophy and
vision will continue to grow alongside the organization, respecting, appreciating, and challenging one another while contributing to healthier lives for all.
Domestically, however, our talent management practices also still have room for improvement. A key challenge is the wide gap in capabilities among workplace leaders resulting from underinvestment in their development. Developing and implementing programs that raise the overall capabilities of this group has become an urgent priority. In terms of executive talent development, we are focusing especially on current section managers who we view as potential candidates to become division heads over the next 10 years. Through a combination of rotations, assignments, and training, we aim to cultivate individuals with broader perspectives and stronger strategic thinking. Leaders also play a vital role in connecting day-to-day work with Company management. They are instrumental in promoting Active Roles for All Employees. By understanding each of their team members' abilities, aspirations, and character, and by motivating them to take on stretch assignments, leaders can foster greater motivation to contribute to growth. To support this, we will continue enhancing leadership's skills.
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Organizational and Human Capital Strategy
Calbee's Unique Active Roles for All Employees Index (Human Capital Index) Based on our definition of Active Roles for All Employees, we have developed our own human capital index, a proprietary metric to quantify progress toward this goal. This index enables us to assess, in measurable terms, how human capital management contributes to corporate value.
The index combines an empowerment score for α talent (those who steadily build the future through continuous effort, ingenuity, and improvement, mainly active in our core
domestic business) and β talent (those who pioneer the future by challenging existing frameworks, mainly active in overseas and new businesses). These are then multiplied by a mutual trust score that captures the synergistic effect between the two groups. Calbee's Active Roles for All Employees Index rose from 78.22 in FY2024/3 to 79.90 in FY2025/3.
While this rise reflects progress in human capital management, both α and β talent scored relatively low in career autonomy. Although we launched career-related initiatives in 2022, we will continue efforts to develop employee mindsets and behavior.
FY2025/3
3.47
Active Roles for All Employees status score
Career autonomy score
Psychological Empowerment
safety score score
α Talent
Talent that steadily builds the future through continuous effort, ingenuity, and improvement
Empowerment score
FY2024/3
10.06
β Talent
Talent that pioneers the future by challenging existing frameworks
Empowerment score
FY2024/3
11.79
10.24
FY2025/3
11.71
FY2025/3
Active Roles for All Employees status score
FY2024/3
3.55
FY2025/3
3.62
Career autonomy score
FY2024/3
3.11
FY2025/3
3.15
Psychological safety score
FY2024/3
3.40
Active Roles for All Employees status score
FY2024/3
4.04
FY2025/3
4.05
Career autonomy score
FY2024/3
3.72
FY2025/3
3.66
Psychological safety score
FY2024/3
4.03
FY2025/3
4.00
We believe that true value creation and Active Roles for All Employees are achieved when both α and β talent demonstrate their strengths in their respective roles while working together-not apart-with a spirit of altruism, mutual respect, and collaboration.
Target score: 81.28
Mutual trust score
FY2024/3
3.58
3.64
FY2025/3
Calbee's Active Roles for All Employees Index
FY2024/3
78.22
79.90
FY2025/3
Passing line: 73.50
We have set a benchmark of 3.50 for each of Active Roles for All Employees status score, career autonomy score, and psychological safety score and mutual trust score. Scores above 3.50 are considered to indicate strong positive responses. Our 2030 target is to raise all scores currently below 3.50 to at least that level.
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Organizational and Human Capital Strategy
Identifying Key Organizational and Human Capital Issues
To promote Active Roles for All Employees, we must first understand the current state and challenges of our talent base, and how to address these. Since FY2023/3, we have held monthly Talent Development Meetings between executive officers and HR. Through these discussions, we have identified three key challenges.
The first is helping employees overcome a sense of complacency. Limited internal mobility and seniority-based evaluation and compensation systems have reinforced the status quo. We are now revising these systems.
The second is encouraging employees to step beyond their boundaries and take initiative. We aim to foster autonomy and growth by strengthening leadership, creating psychologically safe workplaces, and offering opportunities to look beyond one's immediate organization.
The third is securing the core talent needed to enhance corporate value. We will clarify the skills and scale of talent needed for future value creation and take a deliberate approach to acquisition and development.
Advance transformation
01
02
03
04
Foster a workplace culture where everyone can take on challenges without fear of failure
Build HR systems that encourage diverse contributions and growth
Promote career autonomy to expand individual potential
Recruit and develop core talent that will shape the future
Strengthen foundations
Advance DE&I management that respects diversity
Instill Calbee's philosophy and pass down its corporate DNA
Promote physical and mental well-being
Secure core talent needed to enhance corporate value
Encourage more employees to step beyond their boundaries and take initiative
Overcome complacent mindsets
Enhance profitability of core business
Co-create new value
Transform business portfolio
Boost motivation and sense of growth
Reinforce business foundations
Issued Calbee's First Human Capital Report
For more details on our organizational and human capital strategies, please refer to the Calbee Group's Human Capital Report 2025.
https://www.calbee. co.jp/en/ir/pdf/2025/ humancapitalreport2025_en.pdf
HUMAN CAPITAL REPORT 2025
カルビーは「全員活躍」の人財ビジョンのもと、従業員が主体的に力を発揮し企業価値向上と社会貢献を両立させることを目指しています。本レポートではカルビーの人的資本の強みを紹介し、株主をはじめとするステークホルダーの皆様にその価値を伝え、会社と従業員、従業員同士の対話を深める契機となることを目指しています。
CONTENTS
人的資本経営
カルビー流「全員活躍」の実現
従業員一人ひとりが未来を創るキーパーソン
全員活躍の推進に向けて
事業戦略と人的資本
人財戦略
独自の全員活躍指数の策定
人財戦略の全体像
特定した課題と施策方針
データ集
16 人的資本データ
Goals
Strategic initiatives
Key challenges
Growth strategy
Creating Value through Human Capital
Transformational and Foundational Initiatives
Calbee is advancing both transformational initiatives and foundational enhancements to address key challenges, with the goals of creating new value through co-creation, enhancing employees' motivation and sense of growth, and building a strong organization and management body that continues to grow. Despite the uncertainty of our future environment, we remain committed to developing products that taste great, are fun, and contribute to mental and physical well-being. Achieving this requires us to take on new challenges and embark on step-change growth that goes beyond incremental improvements of the status quo. Among our most important initiatives is revising our HR systems to enable diverse contributions and employee growth.
We are preparing to launch new HR systems in April 2026 guided by the following principles: eliminate seniority-based elements in favor of role- and merit-based contributions; evaluate not just results but also teamwork and processes; and implement flexible ways of working tailored to job types and workplaces, rather than a uniform company-wide system. These reforms are designed to unlock employee creativity, strengthen organizational capabilities, and build an HR foundation that supports growth. HR plays a vital role in bridging management and employees. We will continue to build mutual trust and apply our area of expertise as we strengthen the HR foundation that underpins Calbee's global growth.
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Key Issues for Long-Term Value Creation
Calbee's Commitment to Sustainability Management
Sustainability is central to Calbee's management approach. By addressing environmental and human rights issues across our value chain, we aim to contribute to a sustainable society. Our mission is to ensure the sustainability of raw materials sourced from nature, such as agricultural produce and marine products, and to continue providing them to consumers around the world.
As our external environment around sustainability evolves, including the growing importance of natural capital and the emergence of human rights issues, we conducted a review of our materiality in 2022 and identified five material issues and 13 priority themes. In March 2024, we established the Calbee Group Human Rights Policy to advance our initiatives in
these priority themes. We also endorsed the UN Global Compact and are now extending our activities worldwide.
The Board of Directors is responsible for supervising sustainability management, while the Sustainability Committee, established in 2019, promotes its implementation. The Sustainability Committee is chaired by the president and CEO and meets twice a year in principle. It identifies material issues, sets priority themes, deliberates and reviews the progress of roadmaps developed by subcommittees, and regularly reports its findings to the Board of Directors.
For details regarding the Group's materiality identification and review process, please refer to the following web page.
https://www.calbee.co.jp/sustainability/en/materiality.php
Priority themes
Board of Directors
Report
Advice
Sustainability Committee
Strategy decisions/ progress reports
Theme identification/ monitoring
Priority theme subcommittees (promoting execution of strategy)
Sustainability Management Framework
Materiality
Person responsible
CLOSE-UP Importance of Food Communication
Calbee creates opportunities to engage with people of all generations through its "food communication" initiatives, with a particular focus on children, who will lead the future. These initiatives aim to share the joy, importance and correct knowledge of food.
To date, we have conducted food education classes, factory tours, and snack contests, with more than
1.6 million participants in total. We will continue to adapt our content to the needs of the times, deepening our connections with our stakeholders through meaningful food-related experiences.
Food education classes
Snack contest
Assurance of food safety
Contribute to healthy and diverse lifestyles | Contribution to healthy lifestyles |
Providing new value in response to diversifying consumer needs | |
Progress of sustainable agriculture | Sustainable production of raw materials |
Conservation of natural capital | |
Co-create a sustainable supply chain | Responsible procurement that respects human rights and the environment |
Environment- and people-friendly logistics | |
Caring for the earth | Achieving carbon neutrality |
Promoting a recycling society | |
Reducing the environmental burden caused by plastics | |
Conservation of natural capital | |
Contributions to local communities | |
Responding to diverse workstyles |
CRO CMO
CEO
President of Calbee Potato, Inc.
President of Calbee Potato, Inc.
CRO
CPO CPO CPO
CPO
Promote Active Roles for All Employees based on diversity
Promotion of diversity, equity, and inclusion
CEO CEO CHRO CHRO
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Key Issues for Long-Term Value Creation
Materiality ListMateriality
Priority themes Promoted themes
KPIs (targets) and process indicators
Achievement
FY2023/3
FY2024/3
FY2025/3
(Correspondence with SDGs)
Indicator
timeframe Target
result
result
result
Contribute to healthy and diverse lifestyles | Assurance of food safety |
| - | - | - | - | - | - | ||||||
Contribution to healthy lifestyles |
| Amount of salt-free/low-salt/ reduced-salt products*1 sold (compared with FY2023/3) | FY2031/3 | 200% | - | 110.1% | 120.5% | |||||||
Amount of protein-rich products*2 sold (compared with FY2023/3) | - | 111.8% | 116.0% | |||||||||||
Providing new value in response to diversifying consumer needs |
| Annual food communication participants*3 | FY2025/3 (continue every year) | 100,000 people or higher | 137,062 | 115,209 | 120,430 | |||||||
Progress of sustainable agriculture | Sustainable production of raw materials |
| - | - | - |
| ||||||||
Conservation of natural capital |
| Usage rate of low-phosphate fertilizer (Hokkaido area) | FY2028/3 | 80% | - | 23.7% | 30.7% | |||||||
Co-create a sustainable supply chain | Responsible procurement that respects human rights and the environment |
| - | - | - |
| ||||||||
Environment- and people-friendly logistics |
| - | - | - |
| |||||||||
*1 Reference value of Nutrition Claims (Food Labeling Standard, Article 7, Paragraph 1, Appended Tables 12 and 13)
*2 Products selected based on Calbee's criteria, reference value of Nutrition Claims (Food Labeling Standard, Article 7, Paragraph 1, Appended Tables 12 and 13)
*3 Calbee Snack School, factory tours, snack contests, and other food education activities
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Key Issues for Long-Term Value Creation
Materiality
Priority themes Promoted themes
KPIs (targets) and process indicators
Achievement
FY2023/3
FY2024/3
FY2025/3
(Correspondence with SDGs)
Indicator
timeframe Target
result
result
result
Caring for the earth | Achieving carbon neutrality |
| Total greenhouse gas emissions*4 (compared with FY2019/3) | FY2031/3 | 30% reduction | 6.4% reduction | 6.9% reduction | 6.7% reduction | |||||
Promoting a recycling society |
| Reduction of product food loss*5 (compared with FY2023/3, three-year moving average) | FY2031/3 | 30% reduction | - | 14.2% reduction | 6.1% reduction | ||||||
Reduction of total water usage*5 (compared with FY2019/3) | FY2031/3 | 10% reduction | 2.9% increase | 1.7% increase | 4.5% increase | ||||||||
Reduction of waste generated*5 (compared with FY2019/3) | FY2031/3 | 10% reduction | 1.3% increase | 6.1% increase | 8.0% increase | ||||||||
Reducing the environmental burden caused by plastics |
| Replacement and reduction of petroleum-based plastic packaging (compared with FY2019/3) | FY2031/3 | 50% reduction | 0.3% 0.9% 1.0% replacement or replacement or replacement or reduction reduction reduction | ||||||||
Conservation of natural capital |
| - | - | - |
| ||||||||
Contributions to local communities |
| - | - | - |
Started participating the Hachioji Kamikawanosato forest conservation project | ||||||||
Promote Active Roles for All Employees based on diversity | Responding to diverse workstyles |
| Ratio of women in management | FY2031/3 | Over 30% | 23.3% | 22.6% | 24.8% | |||||
Ratio of female executives, etc. (executive officers and general managing directors) | FY2031/3 | Over 30% | -*6 | 12.8% | 19.5% | ||||||||
Promotion of diversity, equity, and inclusion | Ratio of male employees taking childcare leave*7 | FY2031/3 | 100% | 111% | 109% | 133% | |||||||
Percentage of employees with disabilities | FY2031/3 | 3.60% | 2.65% | 2.62% | 2.80% | ||||||||
*4 Target scopes are Scopes 1, 2 and 3 (categories 1, 3, 4, 5, 6, 7, 9, 12).
*5 Applies to the production sites (excluding collaborating factories) of Calbee, Inc. (non-consolidated) and the Koga Plant of Japan Frito-Lay Ltd.
*6 Marked as "-" as no KPIs were set for FY2023/3
*7 From FY2023/3, calculated based on the total number of employees who took childcare leave and the total number of employees who used leave systems for the purpose of childcare.
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Key Issues for Long-Term Value Creation
Nature-Positive Scenarios and the Positioning of Our Materiality
2000 2010 2020 2030 2040 2050
2023 On a trajectory
toward nature recovery by 2030
Reduced consumption Sustainable production Reduction of other drivers
Climate change measures
Net-zero
Corporate activities
Conservation and restoration
Ecosystem conservation
Nature-positive scenarios
Source: Produced by Calbee, based on Global Biodiversity Outlook 5, Ministry of the Environment https://www.cbd.int/gbo/gbo5/publication/gbo-5-en.pdf
CLOSE-UP Integrated Initiatives on Climate and Nature (Toward Nature Positive)
Our products rely on natural capital such as soil, water, climate, and biodiversity. Protecting these resources is essential to both the stable growth of our business and the realization of a sustainable society. In line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we have assessed the business risks and opportunities associated with climate change, and actively advanced initiatives to reduce greenhouse gas emissions, including energy-saving activities and the adoption of renewable energy. At the same time, climate change and biodiversity are closely interconnected. Shifts in temperature and rainfall patterns can affect crop yields, while the destruction of ecosystems can undermine the stable supply of food through soil degradation and the loss of pollination. Preventing biodiversity loss and working toward its recovery
company closely connected to agriculture, this process has provided us the opportunity to consider more deeply the relationship between climate change and all forms of natural capital, and to identify new possibilities.
We aspire to be a company that protects and nurtures nature while passing on its value to future generations. By promoting sustainable management that balances the environment, society, and the economy-with coexistence with nature as a central guiding axis principle-we will fulfill our responsibility, together with our stakeholders, to hand down a rich natural environment to the next generation.
require not only conserving and restoring ecosystems, but also addressing climate
Case Study 1
Appropriate Fertilization Based on Soil Analysis
change, promoting sustainable production, and reducing consumption.
Against this backdrop, Calbee plans to provide integrated disclosures on our dependence and impact on natural capital, and related risks and opportunities, in line with both the Taskforce on Nature-related Financial Disclosures (TNFD) and the TCFD. As a
Nitrogen, phosphate, and potassium are known as the three elements of fertilizer, and they are indispensable in potato cultivation as well. Calbee promotes soil analysis, recognizing that soil composition varies by field and condition, and provides recommendations for appropriate fertilization in collaboration with the Hokuren Federation of Agricultural Cooperatives.
Since 2013, we have also conducted joint research with Obihiro University of Agriculture and Veterinary Medicine to improve crop yield and quality through fertilization practices. We regularly hold joint research presentation sessions with the university and share outcomes with contracted growers and other agricultural stakeholders, helping to disseminate cultivation techniques. Based on this research, we are pursuing the KPI of an 80% adoption rate of phosphate reduction based on soil analysis in the Hokkaido area.
Appropriate fertilization plays a vital role in improving crop yield and quality, but also in reducing GHG emissions-a major driver of climate change-and in conserving natural capital.
Circular economy
(maximizing added value through efficient and cyclical use of resources)
Biodiversity status
All factors must be addressed
Materiality
Case Study 2
Reducing GHG Emissions from Potato Cultivation
In FY2024/3, Calbee contributed data and verification to the Ministry of Agriculture, Forestry and Fisheries' "Visualization of Potatoes" project, which used a simplified calculation form to estimate GHG emissions. This revealed that the primary sources of GHG emissions in potato cultivation are fuel, fertilizer, and agrochemicals, with fuel for agricultural machinery accounting for about 50% of total emissions. We are now gathering information and exploring the potential of new fuels
such as hydrogen and synthetic methane, not only as alternative fuels for our factories but also for use in agriculture.
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Progress on Priority Themes
Ensuring Food Safety and Reliability
Sustainable Production of Raw Materials
Strengthening Quality Assurance and Traceability Providing safe and reliable products is Calbee's foremost social responsibility. We strictly implement and comply with quality controls based on the international standard for food safety management systems (FSSC 22000), and verify compliance through internal audits and periodic audits.
Within the 10 processes that make up Calbee's unique value chain, we have established specifications and standards at each process to ensure 100% quality for the subsequent stage. By fully linking these processes together, we are able to provide consumers with quality assurance and traceability. We also continuously listen to consumer feedback, using it to improve our offerings in an effort to create products that earn our consumers' trust and satisfaction.
Raw materials
Production
Logistics
Sales
Seed potatoes
Fields
Raw material distribution
Pre-processing
Processing
Seasoning
Packaging
Warehousing
Product distribution
Stores
Consumers
Calbee's 10 Processes
X-ray inspection systems, metal detectors, and monitoring cameras in our manufacturing process. In some factories, we have also installed near-infrared cameras on production lines to automatically collect data in real time and remove non-standard
Stable Procurement of Japan-Grown Potatoes Stable procurement of potatoes is essential to the sustainable growth of Calbee's business. For this reason, we regard sound agricultural management as critical and have identified "prog-ress of sustainable agriculture" as one of our material issues. The environment for agriculture is becoming increasingly challenging due to factors such as labor shortages and climate change, among other factors. Leveraging our accumulated expertise, we are developing original potato varieties and providing support for cultivation and harvesting.
The number of farmers in Japan is expected to continue to decline due to the falling birthrate and aging population. Securing the required number of agricultural workers and stabilizing their income are pressing social issues, including in terms of Japan's food self-sufficiency. Potatoes in particular require a heavier workload to cultivate compared to other crops, making labor reduction especially important. To address this, Calbee operates a contracting business that undertakes part of the cultivation and harvesting process, promoting the shared use of large-scale agricultural machinery by small groups of producers. Through these initiatives, we are working to support contracted growers and contribute to labor-saving in agriculture.
Climate change effects such as heavy rain, typhoons, and high temperatures are having a greater impact on potato cultivation each year. Recently, in 2021, the volume of potatoes procured dropped sharply due to the impact of drought in parts of Hokkaido. To mitigate these risks, we are expanding and diversifying production areas in Hokkaido, as well as contracted potato cultivation areas in Tohoku and the central Hokkaido growing region. In these regions, we assign potato cultivation experts referred to as "fieldmen" to be stationed locally. Drawing on data collected to date, they provide guidance on cultivation technology and
labor-saving agricultural practices tailored to the local conditions of each area.
Poroshiri, a variety of potato uniquely developed by Calbee Potato, Inc.
products, thereby ensuring thorough quality control.
Irrigation
Harvesting
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Achieving Carbon Neutrality
Progress on Priority Themes
Responsible Procurement That Respects the Environment and Human Rights
Promoting Procurement That Respects the Environment and Human Rights
In raw materials procurement, supply chains face a range of risks, including climate change, natural disasters, human rights issues, and geopolitical developments. Calbee revised the Calbee Group Code of Conduct in 2021 and revised the Calbee Group Procurement Policy accordingly the following year. Through these frameworks, we are addressing issues in areas such as human rights and the environment, and working with our suppliers to help realize a sustainable society.
In addition to assessing the quality of suppliers' raw materials, we also conduct CSR self-assessments, asking them to evaluate their practices regarding issues such as human
Revisions to the Calbee Group Code of Conduct and Polices and Assessments Conducted by Year
Company's policy Assessment (results)
FY2022/3
Revision of Calbee
Group Code of Conduct
Revision of Calbee
rights, the environment, and legal compliance, thereby integrating CSR considerations into procurement.
Status of Initiatives for RSPO Certification and Switch to Palm OilIn April 2022, we completed a switchover to RSPO-certified palm oil (mass balance method) at
all factories in Japan, and as of the end of March 2025, we were selling 31 products displaying the RSPO label, as part of our efforts to promote environmental communication with consumers.
Progress on Reduction of Scope 1 and 2 Emissions In FY2025/3, we reduced Scope 1 and 2 emissions by 33.2% compared with FY2019/3. The main initiatives for achieving this were energy-saving activities in factories, switching to renewable energy, and participation in a smart energy project in Kiyohara Industrial Park, Utsunomiya City.
In addition, in FY2025/3, we completed calculation of emissions for manufacturing sites in Japan and 12 sites overseas, along with third-party verification. We will continue to advance these initiatives across the entire Calbee Group.
Kiyohara Smart Energy Center
Purchase of Electricity from Renewable Energy SourcesFY2023/3
Group Procurement Policy
Formulation of Palm
Conducted self-assessments (58 companies)
Since FY2020/3, we have been switching over to CO2-free electricity derived from renewable energy sources, and
Oil Procurement Policy
Formulation of Calbee • Human rights follow-up
purchasing electricity with non-fossil fuel certificates.
FY2024/3
Group Human Rights Policy
Strengthened engagement on GHGs (2 companies), palm oil (4 companies),
Calbee has completed the switch to renewable energy at
and paper (2 companies)
Expanded self-assessments (54 companies)
Started on-site checks when conducting procurement assessments
11 of its 17 domestic production sites, including the
Setouchi Hiroshima Factory, which started operations in January 2025. The three factories participating in the smart
FY2025/3
(101 companies)
Translated the self-assessment sheet into multiple languages
(English and Chinese)
Continued initiatives on GHGs
January 2020 Joined RSPO
May 2020 Started purchasing RSPO credits equivalent to the amount of palm oil used in domestic factories under the Book and Claim* system
March 2021 Acquired certification using the mass
balance system
July 2021 Switched to certified palm oil at certain domestic factories
April 2022 Switched to mass balance certified palm oil at all Calbee domestic factories using palm oil (14 locations)
September 2022 Started displaying the RSPO label on
packages on six items across four of our core product lines
* A system in which RSPO Credits are traded online between palm oil producers and end-product manufacturers/sellers. The system supports certified palm oil producers by issuing RSPO Credits based on the volume of certified palm oil that they produce, with end users purchasing these credits.
(2 companies), palm oil (4 companies),
energy project are saving energy and switching over to
renewable energy as well.
and paper (2 companies)
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Calbee Group Integrated Report
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Our Value Creation Strategy
Governance Data
Progress on Priority Themes
Promoting a Recycling Society
Promoting Reduction in Scope 3 Emissions Scope 3 emissions increased by 4.4% in FY2025/3 compared with FY2019/3. One of the main drivers of this increase was an increase in the volume of raw materials used (category 1) due to increased production volume compared to the base year.
CLOSE-UP
Setouchi Hiroshima Factory
-The Next-Generation Standard
The Setouchi Hiroshima Factory, which began operations in January 2025, is a cutting-edge "mother factory" built around the concept of "a factory that brings smiles to people and the planet, shaping the future." To minimize its environmental impact, the factory will utilize a renewable energy and a circular energy system that makes effective use of waste heat, wastewater, and other forms of waste. Calbee aims to use this technology to reduce total GHG emissions by 50%, waste output by 50%, and water usage by 30%, all per unit of product weight (compared to the Hiroshima Hatsukaichi Factory in FY2019/3). The Setouchi Hiroshima Factory will also enable Calbee to raise the labor productivity of individual workers by 60% through the use of advanced technologies, including the latest digital transformation (DX) initiatives. It will also provide a safe and inclusive working environment through measures such as easing the burden of heavy labor, ensuring effective management of high temperatures in facilities, and creating facilities that accommodate the needs of LGBTQ employees.
Initiatives to reduce category 1 factors require engagement across the entire supply chain. For our key raw material, potatoes, we conducted interviews with contracted growers to visualize their GHG emissions in potato cultivation. This analysis identified fuel (diesel fuel), fertilizer, and agrochemicals as the primary sources of emissions. We used this data to contribute to the drafting of a simplified GHG emissions calculation form for potato cultivation by the Ministry of Agriculture, Forestry and Fisheries. We are now working with a wide range of stakeholders to address these sources of emissions.
Reducing Product Food Loss
Against our target of a 30% reduction in product food loss by FY2031/3 (compared to a three-year moving average from FY2021/3), we achieved a reduction of 6.1% in FY2025/3. This progress reflects a series of initiatives aimed at augmenting product quality, which led to a decrease in losses due to product defects. As we work to reduce product food loss while focusing on quality, we will continue to conduct general inspections at each stage of the manufacturing process, operate in line with Calbee, Inc.'s specification standards, and introduce equipment designed to maintain and improve quality.
Reducing Water Consumption
Water consumption in FY2025/3 increased 4.5% compared with FY2019/3. The main drivers included higher water usage for washing potatoes and water used in test operations involved in the commissioning of the Setouchi Hiroshima Factory. Calbee's water reduction initiatives focus on regulating water consumption and recycling. Within these, we plan to introduce a water recycling system at the Setouchi Hiroshima Factory, which started operations in FY2025/3. After the effectiveness is confirmed, we will look at deploying the system at other factories.
Promoting "3Rs":
Reuse of Potato Residue
Much of the waste generated in the production process consists of animal and plant residues, including potato residue, and sludge generated by wastewater treatment. Calbee is working to reduce these by recovering starch more efficiently. We also reuse waste as a resource, using residues for
animal feed and sludge for compost. At some of our factories, potato residue is fermented to create methane, which is captured as a biogas and used as boiler fuel.
Reducing Petroleum-Based Plastic Packaging In 1983, we became the first company in the snack industry to use packaging that incorporated a layer of aluminum vapor-deposited film (plastic film with aluminum adhered to it). This multi-layered plastic
significantly improved the prevention of oil oxidation; however, in recent years, plastic has also been identified as a contributor to environmental issues.
We have taken steps to reduce plastic film usage, such as reducing the thickness of the film itself and scaling down packaging containers. We are also working with the other companies on
reusing plastic as a resource.
From July 2024, we adopted zipless packaging for some of our stand-up pouch products. By changing the container shape, we have reduced the amount of
petroleum-based plastic by approximately 11% compared to our previous product.
Methane fermentation plant at the Setouchi Hiroshima Factory
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Response to TNFD Recommendations
Endorsement of TNFD Recommendations Guided by our corporate philosophy of harnessing nature's gifts, we aim to understand the processes through which we depend on and impact natural capital, and to contribute to the healthy circulation of natural capital and the preservation and enhancement of ecosystems.
Our Connections with Nature
Using the ENCORE nature-related assessment tool, we conducted a comprehensive analysis of the Calbee Group's entire value chain to identify our points of connection with nature. The chart at the top right organizes our main interactions with natural capital across the value chain and visualizes the overall picture of our ties to nature.
Evaluation of Dependencies and Impacts on Nature
In addition to mapping the overall value chain, we evaluated the degree of dependency and impact specifically in the processes of procurement, production, and packaging, which are particularly important in our value chain. The results are shown in the table to the right. These evaluations serve as the foundation for prioritizing risks and opportunities and for formulating responses.
Risks Related to Climate and Nature
The table on page 44 summarizes the risks arising from climate change and changes related to natural capital. These risks were identified by considering the degree of dependency and impact, geographical connections, and the potential effects on business operations.
Points of Connection with Nature
Procurement
Product planning development
Production
Dependencies Impacts
Climate conditions • Freshwater/water use
Water supply • GHG emissions
Water flow regulation • Solid waste
Water purification
Consumer feedback
Calbee's Business Activities
Packaging
Dependencies Impacts
Supply of timber • Freshwater/water use
Climate conditions • GHG emissions
Water supply • Land use
Water purification • Fertilizer use
Soil quality maintenance • Solid waste
Sales
Logistics
Dependencies Impacts
Climate conditions • GHG emissions
Soil quality maintenance • Air pollutant emissions
Flood control • Invasion of non-native species
Impacts
GHG emissions
Water use
Dependencies
Climate conditions
Supply of agricultural and • Freshwater/water use marine products • Land use
Climate conditions • GHG emissions
Water supply • Fertilizer use
Water flow regulation • Solid waste
Water purification
Soil quality maintenance
Pollination
Pest and disease control functions
Habitat maintenance
Impacts
Dependencies
Very high High Medium or lower / N/A
Potatoes
Sweet potatoes
Procurement
Palm oil Oats
Shrimp Production
Film
Packaging
Paper,
Details of dependencies and impacts rated very high
cardboard
Natural capital and ecosystem services we depend on:
Scale of Dependencies and Impacts
Supply of agricultural and marine products (biomass provisioning) | Securing raw materials for products and packaging depends on natural supply services | ||||||
Climate conditions (global climate regulation, local climate regulation, rainfall pattern regulation) | Agricultural crops depend on climate conditions such as sunlight hours, rainfall, and temperature | ||||||
Water supply/flow regulation/purification | Stable water quantity and quality are essential in crop cultivation and product production | ||||||
Soil quality maintenance (soil quality regulation) | Crop cultivation and forest resource development rely on stable soils supported by vegetation and microorganisms | ||||||
Pollination | Palm cultivation depends on natural pollinators (other crops rely on self-pollination or vegetative propagation) | ||||||
Pest and disease control functions (biological control) | |||||||
Habitat maintenance (Nursery population and habitat maintenance) | Shrimp depend on marine habitats | ||||||
Activities impacting natural capital and ecosystem services: | |||||||
Freshwater/water use (areas and amounts of freshwater use) | |||||||
GHG emissions | Use of petroleum-derived film materials results in GHG emissions | ||||||
Land use (area of land use) | |||||||
Fertilizer use (emissions of nutrient pollutants to water and soil) | Fertilizer use results in nitrogen and phosphorus runoff | ||||||
Solid waste (generation and release of solid waste) | |||||||
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Scenario 1: Tighter regulations on climate change and natural capital, leading to higher transition risks
High
Low
High
Low
Scenario 2: Rising physical risks from climate change and natural capital driving increased frequency of extreme weather events, natural capital degradation
Response to TNFD Recommendations
Climate- and Nature-Related Risks
●●High likelihood of occurring under the scenario ○Moderate likelihood of occurring under the scenario
Production
T
Packaging
Dependencies and impacts Target Category Risk
Scenario
1 2
Target Risk countermeasures
Transition risks | Fertilizer use | If regulations on farmland development, pesticide/herbicide use, and chemical fertilizers are strengthened, additional countermeasures will be required, leading to higher procurement costs | ● | Implement appropriate fertilization based on soil analysis; promote adoption through incentive mechanisms Strengthen supplier engagement and supplier assessments; use RSPO-certified palm oil | ||||
Solid waste | If regulations on agricultural waste and wastewater management are tightened, additional countermeasures will be required, leading to higher procurement costs | ● | ||||||
GHG emissions | Climate, nature | If stricter regulations are imposed on virgin plastics derived from petroleum, packaging costs will increase, while growing consumer awareness is expected to drive greater demand for biomass and recycled plastics | Reduce petroleum-based plastic packaging while maintaining
| |||||
If regulations such as the EU Deforestation Regulation (EUDR) Nature on paper cups and cartons are strengthened, compliance costs ● Use renewable energy; utilize hydrogen, etc. will rise Promote decarbonization across the entire value chain Climate If carbon taxes are introduced, costs related to factory opera- ● tions and raw materials will increase | ||||||||
Freshwater/water use | Nature | If water resources continue to decline and water-related taxation is implemented, operating costs will rise |
| |||||
General | Climate, nature | As climate change progresses, consumer demand is expected to shift further toward environmentally responsible products |
| |||||
Physical risks | Supply of agricultural and marine products Climate conditions | Climate, nature | Rising temperatures and changing rainfall and weather patterns are likely to lower raw material quality and reduce yields, resulting in higher procurement costs. In addition, stronger storms may cause greater field damage |
| Secure import routes for overseas potatoes | |||
Develop and switch crop varieties; establish cultivation tech- niques | ||||||||
Soil quality maintenance | Climate, nature | If soil quality continues to decline, raw material quality will deteriorate and yields will fall, leading to higher procurement costs | Implement appropriate fertilization based on soil analysis; promote adoption through incentive mechanisms; establish
Strengthen supplier engagement and assessments; promote the use of RSPO-certified palm oil | |||||
Pollination | Nature | If pollinator populations decline, investment in artificial pollination equipment will be required, driving up procurement costs |
| |||||
Pest and disease control functions | Nature | If pests and diseases increase, raw material quality will decline and yields will fall, resulting in higher procurement costs | Develop new crop varieties and update pest control calendars | |||||
Strengthen supplier engagement and assessments; promote the use of RSPO-certified palm oil | ||||||||
Supply of agricultural and marine products | Climate, nature | If production volumes of raw materials for packaging fluctuate, procurement costs will rise |
| |||||
Water supply/flow regulation/ purification | Nature | If natural disasters cause factory damage or prolonged disruptions to logistics, procurement, production, and supply volumes will decrease | Formulate BCPs assuming extreme weather; construct factories
| |||||
Nature | If water sources become depleted, business operations may become restricted |
| ||||||
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Response to TNFD Recommendations
We have identified opportunities across our value
Climate- and Nature-Related Opportunities
Climate- and Nature-Related Opportunities
Procurement of potatoes Procurement of sweet potatoes Procurement of palm oil Procurement of oats Procurement of shrimp
Production
Packaging
Dependencies and impacts Target Category Opportunities
General | Climate, nature Increased sales through efforts to offer environmentally responsible and certified products (e.g., use of RSPO-certified palm oil, sales of RSPO-labeled products) | ||
Supply of agricultural and marine products | Climate, nature Greater efficiency and expansion in raw material procurement through labor-saving agriculture | ||
Climate, nature Stable procurement by promoting sustainable agriculture, forestry, and fisheries | |||
Climate conditions | Climate, nature Expanded areas suitable for potato cultivation due to climate change, leading to increased procurement | ||
Freshwater/water use | |||
GHG emissions | |||
Climate, nature Contribution to building a circular plastics society through collection and recycling, including participation in R Plus Japan activities | |||
Solid waste | Climate, nature Reduced waste and greater utilization of unused resources by reducing product food loss and recycling raw material waste | ||
chain in response to climate change and natural capital issues. These include promoting sustainable agriculture, such as regenerative farming, responding to ethical consumption, utilizing waste generated in the production process, and sourcing sustainable raw materials. Going forward, we will continue to regularly review risks and opportunities, further specify countermeasures, and reflect them in our medium- to longterm management strategies.
Results of Target Indicators
As part of our response to climate change and natural capital issues, we have set metrics and targets as shown in the table at the lower right. For greenhouse gases, we aim to reduce total emissions by 30% by FY2031/3 compared with FY2019/3, and achieve net-zero GHG emissions for Scopes 1 and 2 by 2050. For natural capital, we are targeting an 80% adoption rate of phosphate reduction in the Hokkaido area, promoting appropriate fertilization based on soil analysis. To avoid or mitigate the impacts of climate change and environmental changes, we are also working to develop new potato varieties and expanding contracted potato acreage in the Tohoku and central Hokkaido regions.
Metrics and Targets
Fertilizer use | Implement appropriate fertilization based on soil analysis; promote adoption through incentive mechanisms | FY2028/3 Achieve 80% adoption rate of phosphate reduction 30.7% (Hokkaido area) |
Solid waste | Capture opportunities through recycling of FY2031/3 Reduce product food loss by 30% (3-year average 6.1% reduction raw material waste; reduce waste and utilize compared to FY2021/3-FY2023/3) unused resources FY2031/3 Reduce total waste emissions by 10% (compared to FY2019/3) 8.0% increase | |
GHG emissions | Use renewable energy Utilize hydrogen, etc. | FY2031/3 Reduce total GHG emissions by 30% (compared to FY2019/3) 6.7% reduction Scope 1, 2: 33.2% FY2051/3 Net-zero GHG emissions for Scopes 1 and 2 Scope reduction ease 3: 4.4% incr |
Reduce petroleum-based plastic packaging while maintaining product quality; shift to alternative raw materials and promote recycling | FY2031/3 Replace or reduce petroleum-based plastic packaging by 50% (compared to FY2019/3) 1.0% replacement and FY2051/3 Achieve 100% use of environmentally friendly materials reduction | |
Soil quality maintenance Supply of agricultural and marine products, climate conditions | Secure import routes for overseas potatoes Develop new varieties and establish cultivation techniques | Contracted acreage Register four new potato varieties adapted to climate expanding as planned, FY2031/3 change mainly in the central Expand contracted potato acreage in the Tohoku and Hokkaido, Abashiri, central Hokkaido regions, etc. and northern Kyushu regions |
Pest and disease control functions | Develop new varieties and update pest control calendars | |
Freshwater/water use | Conserve water and promote water recycling | FY2031/3 Reduce total water usage by 10% (compared to FY2019/3) 4.5% increase |
Countermeasures Target years Targets FY2025/3 results
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Response to TNFD Recommendations
Organizing Climate- and Nature-Related Interactions
Many of Calbee's initiatives to address risks and seize opportunities generate positive outcomes for both climate change and natural capital. Therefore, to structure our initiatives, we are applying the framework presented in Unlocking the biodiversity-climate nexus: A practi-tioner's guide for financial institutions (Finance for Biodiversity Foundation, 2023).
For Pillar 2, initiatives that have positive impacts on both climate change and biodiversity include implementing appropriate fertilization through soil analysis, developing new crop varieties and updating pest control calendars as part of sustainable agricultural practices, reducing product food loss and waste, and reducing plastic use.
Initiatives placed in Pillar 1 may impose burdens on climate change responses or biodiversity, and those in Pillar 4 on biodiversity. These include responses such as BCP measures assuming extreme weather, imports from overseas factories, and diversification of raw material production regions, all of which are necessary for stable procurement and production. We will continue to advance measures that positively contribute to both climate change and biodiversity, while striving to minimize burdens on climate and nature that may arise as trade-offs.
Conceptual Diagram of the Unlocking
the Biodiversity-Climate Nexus Framework
Climate negative
Climate positive
Biodiversity positive
Pillar 3
Biodiversity solutions can impact climate negatively
Pillar 2
Biodiversity conservation is necessary for climate action
Pillar 1
Climate change is one of the direct drivers of nature loss
Pillar 4
Climate action can affect nature negatively
Biodiversity negative
Source: Created by Calbee based on Unlocking the biodiversity-climate nexus: A practitioner's guide for financial institutions (Finance for Biodiversity Foundation, 2023)
Using the Conceptual Diagram of the Unlocking the Biodiversity-Climate Nexus Framework
Change the size and specifications of cardboard
Conserve water and promote water recycling
Reduce petroleum-based plastic packaging while maintaining product quality
Shift to alternative raw materials and promote recycling
Implement appropriate fertilization through soil analysis
Promote adoption through incentive mechanisms
Establish cultivation techniques
Develop new crop varieties and update pest control calendars
Reduce product food loss in products
Reduce waste
Develop foods with long shelf lives
Use RSPO-certified palm oil
Promote environmentally friendly certified products
Strengthen supplier engagement and supplier assessments
Pillar 3 Pillar 2
Promote decarbonization across the entire value chain
Use renewable energy
Utilize hydrogen, etc.
Formulate BCPs that assume extreme weather; construct factories based on hazard maps
Supply from Group factories overseas
Diversify production regions
Secure import routes for overseas potatoes
Pillar 1 Pillar 4
Biodiversity positive
Climate negative
Climate positive
Biodiversity negative
Procurement of potatoes Procurement of sweet potatoes Procurement of palm oil Procurement of oats Procurement of shrimp
Production
Packaging
2025 Message
Calbee Group Integrated Report
Our Value Creation Story
Our Value Creation Strategy
Governance Data
Respect for Human Rights
Launching Project to Promote Respect for Human Rights
Calbee recognizes that all its business activities may directly or indirectly affect human rights, and is committed to fulfilling its responsibility to respect the rights of all people involved in its business. In 2021, we incorporated "respect for human rights" into the Calbee Group Code of Conduct, and in 2022, we revised and established the Calbee Group Procurement Policy and the Calbee Group Palm Oil Procurement Policy to advance concrete actions. Furthermore, in March 2024, we established the Calbee Group Human Rights Policy. In April of the same year, we launched the cross-functional Human Rights Respect Promotion Project, spearheaded by the president and CEO and involving the risk management, procurement, corporate planning, HR, and sustainability divisions, among others. Through this project, we have been working to build mechanisms and frameworks to carry out initiatives on an ongoing basis.
Identifying Priority Issues
In formulating the Calbee Group Human Rights Policy, we held our first human rights workshop in 2023, primarily involving general managing directors of relevant divisions. Participants brought forward (1) potential human rights risks that may arise in the future, and (2) human rights risks that had already occurred (or were close to occurring) in their own areas
of responsibility. These were discussed, and with input from experts, the four priority issues shown below were identified and reported to the Board of Directors. Based on further
fact-finding, we subsequently designated human rights issues in the supply chain, the rights of foreign workers, and harassment as our central themes going forward. We will continue to broaden the scope of our understanding through human rights due diligence and periodically review these issues.
Establishing the Human Rights Committee
In FY2025/3, we implemented projects designed to build mechanisms for ongoing human rights initiatives and to implement human rights due diligence. In April 2025, we established the Human Rights Committee, chaired by the president and CEO. The committee, which in principle meets twice a year, deliberates on responses to priority issues, formulates roadmaps for overall activities, and clarifies the committee's role and positioning within corporate governance. In addition, the committee advances the development of grievance mechanisms, dialogue with stakeholders, and education and awareness-raising activities.
For details on the human rights due diligence carried out in FY2025/3, please see our website:
https://www.calbee.co.jp/sustainability/en/supplychain/humanrights.php
Calbee's Identified Priority Issues
Composition of the Human Rights Committee
Chairperson: President & CEO
Members:
CRO; General Managing Director, Corporate Risk Management Division (also Secretariat Director); General Managing Director, HR & GA Division; General Managing Director, Sustainability Management Division; General Managing Director, Global Procurement Division; General Managing Director, Corporate Planning Division
Secretariat: 2 members
Frequency:
Twice a year (in principle)
General human rights issues
Calbee priority issues
Overall Framework for Human Rights Initiatives
Human rights issues in the supply chain: child labor, forced labor within suppliers, harassment between business partners
Inadequate wages Working hours
Harassment Forced labor
Rights of foreign workers: discriminatory treatment in wages, working hours, or other conditions
Rights of foreign workers
Child labor
Occupational health and safety
Freedom of residence and movement
Human rights issues related to technology and AI
Gender-related human rights issues
Right to social security
Freedom of association
Right to privacy
Harassment*:
sexual harassment, workplace bullying, maternity/paternity harassment, etc.
Working hours:
excessive or inappropriate working hours in violation of Article 36 agreements, obstructing rest breaks
Consumer safety and right to know
Rights of indigenous peoples and local communities
Discrimination
Freedom of expression
Human rights issues related to environment and climate change
Intellectual property rights
Bribery and corruption
Human rights issues
in the supply chain remedies
Right to access
1
Identify and assess negative impacts
Cease, prevent, and mitigate negative
impacts
2
Human rights due diligence
Communicate
4 addressed
how impacts are
implementation
Track
and outcomes 3
Development of grievance mechanisms and remedies |
Dialogue and discussion with stakeholders |
Education and awareness-raising activities |
Monitoring and information disclosure |
Source: Prepared by Calbee based on response to "Business and Human Rights" Issues Required of Enterprises: "Business and Human Rights Survey and Research" Report (Digest Version), February 2021, Ministry of Justice
* Harassment includes sexual harassment, workplace bullying, maternity and paternity harassment, caregiving harassment, etc.
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Calbee Inc. published this content on October 20, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 20, 2025 at 02:12 UTC.
