FY 3/2026 was a challenging year for the Group financially, affected by the normalization of demand following the earlier surge in instant noodle demand in the U.S. business, changes in consumer behavior, and company-wide cost increases. Of these challenges, the U.S. business is the issue I take most seriously. As preferences grow for lower prices and competition intensifies for premium products, our response was not sufficient.

At the same time, the emergence of these challenges has clarified what we must work on to return to growth. At the core will be the rebuilding of our global growth strategy and the strengthening of the management foundation that supports this strategy. After a fundamental review of our brand strategy in the overseas business, we approach FY 3/2027 as a starting point for renewed growth, and our aim is to return to a profit growth trajectory in the mid-single digits. In Japan, too, a structural shift from deflation to inflation is progressing, giving rise to various cost-increase pressures. Even under such conditions, we intend to absorb cost increases through appropriate price revisions and maintain sustainable operations.

By further raising brand value through the various measures we have implemented to date, we will create value that keeps consumers choosing us. We will tackle the challenges head-on and see the transformation through to the end.

We see the U.S. market not merely as a large market, but as a strategic market capable of driving our global growth. In our product strategy, we put forward a value proposition that lets consumers enjoy the quality of Japan’s ramen restaurants easily and affordably at home, and, under the concept of BOLD TASTES of TOKYO, we are pursuing full-scale entry into the Japanese ramen category. Whereas instant noodles have until now been consumed as a snack, we will move beyond that framework and evolve instant noodles into something chosen as a complete meal. On the organizational side, we will make the fullest use of our Regional Headquarters of Americas to increase the speed of on-the-ground decision-making. We will transform ourselves into an agile structure that tries new ideas and corrects course immediately whenever something isn’t working out.

Realizing global growth also makes strengthening our supply structure indispensable. In Japan, we are advancing the renovation of plant facilities to further improve quality and productivity and to reinforce our stable supply structure. Overseas, we are advancing investments that anticipate future demand growth, including the launch of new production sites in the U.S., Brazil, Mexico, and elsewhere.

At the same time, we are refining our business portfolio anew. While the domestic instant noodle business continues to sharpen competitiveness as the core source of cash generation, we are nurturing the non-instant-noodle domain and new businesses as the next growth engines. There, the key will be to roll out laterally the winning pattern we have cultivated, namely innovative products × bold communication. As needed, we will also draw on M&A and alliances as options, while capturing growth opportunities at home and abroad. It is also important to build a growth model with reproducibility across the Group, while clarifying synergies with our existing businesses.

We are also undertaking reform of the cost structure across the Group. We are making our cost structure visible on a global basis and advancing optimization across the whole company. By identifying areas with room for improvement and rebuilding a lean operating structure, we will lift our profit level and strengthen the cash-generating capability that makes our next growth investments possible.

Sustainable Growth of Core Operating Profit of Existing Businesses