■Progress on the FY2017–2019 (for 2020) Medium-Term Management Plan
・FY2017 had increased sales and profit was level with the previous year, but businesses with issues were apparent.
・In FY2018 we will continue to expand businesses with good performance and complete the reorganization of businesses with issues and progress rapidly in FY2019. We project to achieve the FY2017–2019 MTP sales and business profit one year late.
・5%Increased profits expected for FY2018.
■Progress on the FY2017–2019 (for 2020) Medium-Term Management Plan
・FY2017 had increased sales and profit was level with the previous year, but businesses with issues were apparent.
・In FY2018 we will continue to expand businesses with good performance and complete the reorganization of businesses with issues and progress rapidly in FY2019. We project to achieve the FY2017–2019 MTP sales and business profit one year late.
・5%Increased profits expected for FY2018.
・Effect of ¥8.2 billion down due to skyrocketing raw materials and fuel costs, while ¥5.7 billion will be generated through cost reduction.
・In terms of the profit growth of businesses including the improvement of challenged businesses, an increase of ¥9 billion is projected.
・Increased profits expected for FY2018, despite the reactionary effect of the tax revision in America in the previous year.
・Board of Directors decided on a concrete reduction plan for in-house production of animal nutrition commodities. Recorded FY2017 impairment loss of ¥7.4 billion and other structural reform expenses of ¥0.7 billion for a total of ¥8.1 billion.
■Growth Strategy and Structural Reform
▽Growth Strategy : Food Products Business/Seasonings & Processed Foods in Japan
・Steady sales and profit growth through creation of new meal scenes in major brands.
▽Growth Strategy : Food Products Business/Frozen Foods in Japan
・Continue stable growth of core categories and attempt to create new frozen food categories capturing the changes in diet.
▽Growth Strategy : Food Products Business/International Seasonings
・Establish the world’s no.1 seasonings, backed by Specialty.
・Create demand for menu-specific seasonings and continually expand share.
▽Growth Strategy : Food Products Business/International Frozen Foods(North America)
・Significant growth through Specialty products that have improved quality and deliciousness.
・Quickly establish stable production that supports growth and concentrate on the strategy for Asian food, Appetizers, and Mexican food.
▽Growth Strategy : Food Products Business/Canned Coffee, Birdy®(Thailand)
・Stabilization of profit foundation focusing on a value strategy based on improved quality and deliciousness for loyal users.
▽Growth Strategy : Food Products Business/Coffee Products
・No growth for market overall. The personal market and away-from-home(restaurant and industrial-use)trend are growing. Strive to concentrate strategies on both personal and restaurant and industrial-use markets.
▽Growth Strategy : Food Products Business/Healthcare
・From small molecule API to large molecule oligonucleotides and ADC, create highly profitable CDMO business via continuous investment and strengthen our service system via One Team for each of the group companies.
・Provide health ingredients as Foods with Function Claims and as a variety of food ingredients, also expand area of operation(North America).
▽Structural Reform: Animal Nutrition
・Switch lysine and threonine to OEM.
・Aim to expand Specialty ratio.
■FY2018 Financial Strategy
・Based on the policies of the FY2017–2019 MTP, generate cash flow, invest for growth and provide stable shareholder returns to realize business strategy.
・Decision to conduct a share repurchase to increase the level of shareholder returns and improve capital efficiency.
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