May 11, 2021
NISSIN FOODS HOLDINGS CO., LTD.
Koki Ando
President and Representative Director, CEO
Notice Concerning NISSIN FOODS Group
Mid- to Long-Term Growth Strategy
The NISSIN FOODS HOLDINGS Co., Ltd. has formulated the NISSIN FOODS Group Mid- to Long- Term Growth Strategy, a business plan that defines growth strategies for FY 3/ 2022 and beyond, and growth targets over the next 10 years. The Mid- to Long-Term Growth Strategy, an overview of which follows below, takes over for the Mid-Term Business Plan 2021, which covered the preceding five years from FY 3/2016 through FY 3/2021 (fiscal year ended March 31, 2021).
1. NISSIN FOODS Group Creating Shared Value (CSV) Management
To achieve sustainable growth while solving environmental and social issues as an "EARTH FOOD CREATOR", constantly creating new food cultures through innovation.
Enduring Values | |||
食足世平 Peace will come to the world when there is enough food | |||
Mission | 食創為世 Create foods to serve society | ||
美健賢食 Eat wisely for beauty and health | |||
食為聖職 Food related jobs are a sacred profession | |||
Vision | EARTH FOOD CREATOR | ||
Value | Four Attributes | ||
Creative, Unique, Happy, Global | |||
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2. Mid- to Long-Term Growth Strategy
NISSIN FOODS Group will engage in three mid- to long-term growth strategies, pursuing the Group's vision and sustainable growth based on CSV management.
# | Growth Strategy | Overview | |||
Strengthen Cash | Make a significant shift in profit portfolio through aggressive | ||||
1 | Generation Capabilities | growth in Overseas and Non-Instant Noodles Businesses, | |||
of Existing Businesses | while pursuing sustainable growth | ||||
EARTH FOOD | A challenge to utilize finite resources effectively and reduce | ||||
2 | the impact of climate change | ||||
CHALLENGE 2030 | |||||
Lengthen the life cycles of existing businesses | |||||
Co-create foods of the future with food science | |||||
3 | Pursue New Businesses | Become a company that provides food and health solutions | |||
through technology | |||||
Growth Targets Over the Next 10 Years: Profit Structure and Profit Growth Levels
Business | Overseas | Domestic Non-Instant | Domestic Instant | ||
Noodles Business | Noodles Business | ||||
Target | Current 30% → 45% | Current 10% → 15% | Current 60% → 40% | ||
Structure | |||||
Growth | High-single Digit to | High-single Digit | Outpace Market Growth | ||
Targets | Double Digit | ||||
Strategic | The Leading Company | Build a Second Profit | A Century Brand | ||
in the High-Value-Added | Pillar Next to the Instant | ||||
Goal | Company | ||||
Market | Noodles Business | ||||
Deepen CUP NOODLES | Leverage growth and | Deepen efforts to develop | |||
branding to further solidify | profitability improvement | demand, penetrate | |||
competitive advantage, | in each business, | brands, develop markets, | |||
Future | and roll out operational | focusing on added value | and strengthen supply | ||
Strategic | strategies according to | by pursuing Group | capabilities to continue to | ||
markets, competitive | synergies on both the | grow over the medium to | |||
Direction | |||||
environment, and the | supply and demand sides | long term, steadily | |||
Group's own competitive | increasing sales and | ||||
abilities | profits, even in mature | ||||
markets |
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3. Quantitative Targets
NISSIN FOODS Group is committed to achieving four mid- to long-term economic value (financial) targets through CSV management: (1) Sustainable profit growth, (2) Efficient use of capital,
- Safe use of debt, and (4) Stable shareholder returns. The group will pursue these targets while also pursuing targets related to social value and environmental value (non-financial).
Financial
Non-Financial2
Value Classification | Management Indicator | Mid- to Long- | |||||
Term Target | |||||||
Growth Potential | Core Operating Profit Growth Rate1 for | Mid-single Digit | |||||
Existing Businesses (Constant Currency) | |||||||
Efficiencies | ROE | 10% over the | |||||
long term | |||||||
Safety | Net Debt/EBITDA Ratio | ≦2x | |||||
Stable Shareholder | Dividend Policy | Progressive | |||||
Dividends | |||||||
Returns | |||||||
Relative TSR vs. TOPIX (Foods) | >1x | ||||||
Sustainable Palm Oil Procurement Ratio3 | 100% | ||||||
Effective Use of | Water Usage | 12.3 ㎥ | |||||
Per million yen of revenue (IFRS basis) | |||||||
Finite Resources | |||||||
Total Waste Reduction | -50% | ||||||
Compared to FY 3/2016/Japan | |||||||
Reduction of CO2 Emissions (Scope1+2) | -30% | ||||||
Reduce Climate | Compared to FY 3/2019 | ||||||
Change Impact | |||||||
Reduction of CO2 Emissions (Scope 3) | -15% | ||||||
Compared to FY 3/2019 | |||||||
Related information:
https://www.nissin.com/en_jp/ir/library/file/2021/4q_presentation_material_slide_only.pdf
- A non-GAAP key performance indicator calculated by deducting other income and expenses (defined as income/expenses from new businesses targeted by aggressive up-front investment and non-recurring income/expenses) from IFRS operating profit
- Non-financialtargets reflect FY3/2031 figures
- Based on external certifications and independent assessments
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Nissin Foods Holdings Co. Ltd. published this content on 11 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 10:07:08 UTC.