The NISSIN FOODS Group Mid- to Long-Term Growth Strategy
NISSIN FOODS Group CSV Management
To achieve sustainable growth while solving
environmental and social issues as an
constantly creating new food cultures through innovation.
The NISSIN FOODS Group announced a mid- to long-term growth strategy in May 2021. This strategy outlines three growth strategies toward achieving our unique style of CSV Management.
Growth Story for the Mid- to Long-Term
We pursue three mid- to long-term growth strategies for achieving our vision and sustainable growth.
-
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
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
Roadmap to Achieving Our Vision
Economic Value Targets
- Sustainable profit growth
- Efficient use of capital
- Safe use of debt
- Stable shareholder returns
Quantitative Targets
We are committed to four Mid- to long-term economic value targets through CSV management under our Mid- to Long-Term Growth Strategy 2030: (1) Sustainable profit growth, (2) Efficient use of capital, (3) Safe use of debt, and (4) Stable shareholder returns. We pursue these targets in parallel with non-financial targets.
| Value Category | Management Indicators | Mid- to Long-Term Targets | FY 3/2023 Results (certain results reflect recent performance) |
|
|---|---|---|---|---|
| Financial | Growth Potential | Core operating profit growth rate for existing businesses*1 (constant currency basis) |
Mid-single digits | 16.3% |
| Efficiencies | ROE | 10% over the long term | 8.9% | |
| Safety | Net Debt/EBITDA ratio | ≤2X | -0.5X | |
| Stable Shareholder Returns | Dividend policy | Progressive dividends | 130 yen per share (FY 3/2021: 120 yen per share) |
|
| Relative TSR (Relative to TOPIX Foods)*2 | ＞1X | 1.22X | ||
| Non-Financial*3 | Utilize Finite Resources Effectively | Sustainable palm oil procurement ratio*4 | 100% | 36% *January to December 2021 |
| Water usage (per million yen of revenue (IFRS basis)) | ＜ 12.3㎥ | 11.3㎥ *January to December 2021 |
||
| Total waste reduction (vs. FY 3/2016; Japan) |
-50% | -38.9% *April 2020 to March 2021 |
||
| Reduce Impact on Climate Change | Reduction of CO₂ Emissions (Scope 1+2; vs. FY 3/2019) | -30% | 2.7% *January to December 2021 |
|
| Reduction of CO₂ Emissions (Scope 3; vs. FY 3/2019) | -15% | 8.5% *January to December 2020 |
||
*1 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.
*2 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
*3 Non-financial targets represent targets for FY 3/2031.
*4 Based on the use of external certifications and our own assessments.
