Progress Report on
Mid- to Long-Term
Growth Strategy 2030
Growth Story for the Mid- to Long-Term
Vision
To achieve sustainable growth while solving environmental and social issues as an
"EARTH FOOD CREATOR"
constantly creating new kinds of food culture through innovation.
Roadmap to Achieving Our Vision and Three Growth Strategy Themes
Improved
Value
Strengthen Cash Generation Capabilities of Existing Businesses
Make a significant shift in our profit portfolio through aggressive growth in Overseas and Non-Instant Noodles Businesses, while pursuing sustainable growth
Sustainable
Value
EARTH FOOD CHALLENGE 2030
A challenge to utilize finite resources effectively and reduce the impact of climate change
To extend the life cycle of our existing businesses significantly
Leap Forward
Value
Pursue New Businesses
Co-create foods of the future with food science
Become a company that provides food and health solutions through technology
Food Tech Innovation
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, (3) 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).
| Value Classifications | Management Indicators | Mid-to Long-Term Targets | FY 3/2023 Results | |
|---|---|---|---|---|
| Financial | Growth Potential | Core operating profit growth rate for existing businesses*1(constant currency basis) | Mid-Single Digits | 19.9% |
| Efficiencies | ROE | 10% over the long term | 10.7% | |
| Safety | Net Debt/EBITDA Ratio | ≦2x | -0.4x | |
| Stable Shareholder Returns | Dividend Policy | Progressive Dividends | 140 yen per share | |
| Relative TSR vs. TOPIX (Foods)*2 | > 1x | 1.13x | ||
| Non-Financial*3 | Effective Use of Finite Resources | Sustainable Palm Oil Procurement Ratio*4 | 100% | 37.7% |
| Water Usage Per million yen of revenue (IFRS basis) | ≦12.3m3 | 10.5m3 | ||
| Total waste reduction (vs. FY 3/2016; Japan) | -50% | -47.1% | ||
| Reducing Climate Change Impact | Reduction of CO2 Emissions (Scope1+2)*5 Compared to FY 3/2016 | -30% | -4.0% | |
| Reduction of CO2 Emissions (Scope 3)*5 Compared to FY 3/2019 | -15% | 0.4% | ||
- An important Non-GAAP business management indicator calculated by subtracting profit or loss from new businesses in which we plan aggressive upfront investments and non-recurring income (other income and expenses) from IFRS operating profit.
- We calculate relative TSR (TOPIX Foods comparison) based on the following formula.
Relative TSR =
TSR for the Target Period
TOPIX Foods Growth Rate for the Target Period (including dividends)
=
(B + C) ÷ A
E ÷ D
A: Average of the closing price of the Company's shares during the three-month period from January to March for the three fiscal years prior to the current fiscal year
B: Average of the closing price of the Company's shares during the three-month period from January to March of the current fiscal year
C: Cumulative total of dividends per share for the past three fiscal years, including the current fiscal year
D: Average closing price of TOPIX Foods (including dividends) for the three-month period from January to March for the three fiscal years prior to the current fiscal year
E: Average closing price of TOPIX Foods (including dividends) for the three-month period from January to March of the current fiscal year
- Non-financial targets represent targets for FY 3/2031.
- Based on the use of external certifications and our own assessments.
- In May 2023, CO2 emission reduction targets were revised upward to Scope 1+2 (-42% compared to 2020) and Scope 3 (-25% compared to 2020).
Approach to Sustainable Profit Growth
We have defined core operating profit of existing businesses as an indicator showing the real growth of our existing businesses, which serve as the foundation for growth investment. Here, we have set growth in the mid-single digits as our core economic value target.
