Post on 06-Feb-2018
April 30, 2013
NISSIN FOODS GROUP
Medium-Term Business Plan 2016
FY2014 in domestic company is the year from April 1, 2013 to March 31, 2014.
FY2014 in overseas is the year from January 1, 2013 to December 31, 2013.
Slide numbers appear at the top right of each slide.
Notes for This Document
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Contents
Review of Previous Medium-Term Business Plan andBasic Policies of the Current Medium-Term Business Plan -2-
Strengthening Earning Power of Domestic Business -8-
Speeding Up Growth in Overseas Business -11-
Pursuing Company-Wide Strategic Initiatives -19-
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GROUP PHILOSOPHYEARTH FOOD CREATOR
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The Spirit of Our Founder
Group Philosophy
The Nissin Food Products Group explores various possibilities for food, and creates dream-inspiring delicious tastes.We contribute to society and the earth by gratifying people everywhere with pleasures and delights food can provide.
Our ideal vision for societyPeople can only be content when there is enough food.Food is the most important thing supporting human life.People can discuss culture, art and ideas only when their need for food is satisfied. If its availability is disrupted, a nation will undoubtedly decline and struggles will break out. The world can achieve peace only when there is sufficient food.Theoperations of the Nissin Foods Group have grown from these roots in human life.
What a corporation can doCreating foods to serve society.A creative spirit is the most important thing for a corporation.Creativity means the power to create innovative products through new ideas and technologies.Creating foods to serve society.The Nissin Foods Group is creating a new food culture for the world, and providing people with happiness and inspiration.
How we appeal to customersEat wisely for beauty and health.It is a common desire among humans to fill their stomachs and satisfy their sense of taste. But this is not the only role of food.Creating beautiful bodies and maintaining good health are important functions of food as well.A beautiful, healthy body results from a wise diet. The Nissin Foods Group pursues food functionality and proposes a wise diet to the world.
What we expect from employeesFood-related jobs are a sacred profession.Food production is a job that supports the very roots of life.People in the food industry require a pure spirit that inspires them to serve society and contribute to human health and world peace.Food-related jobs are a sacred profession.It is the mission of the Nissin Foods Group to provide the worlds people with safe, delicious and healthy food for their bodies.
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Nissin Foods Group Vision
Under the current Medium-Term Business Plan, we will work towards our goal of Embodiment of EARTH FOOD CREATOR by focusing on overseas growth.
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Embodimentof EARTH FOOD
CREATOR
Current status
global statusPursue
global status
reputation
Gaina strong global
reputation
FY2014 FY2016 FY2021Period of the current
Medium-Term Business Plan
FY2017-2021Medium-Term Business Plan
Earn a high reputation, inJapan and abroad, as aglobally operating company
Overseas sales ratioMorethan 30%
ROEMore than 8% Sales450 billion Overseas sales ratio
20% ROE7%
Contribute to society and theearth by gratifying peopleeverywhere with pleasures anddelights food can provide
Overseas sales ratio: More than50%
ROEMore than 10%
FY2022-2026Medium-Term Business Plan
FY2026
Corporate Value
Review of Previous Medium-Term Business PlanResult fell short of numerical targets under the plan, reflecting the impact of the Great East Japan Earthquake.However, we achieved technological innovation that will lead to domestic earnings and
foundation for overseas growth.
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Changes in Performance
FY2013 Plan ActualNet sales 430 billion 382.8 billionOperating income 35.5 billion 24 billionOperating margin 8.3% 6.3%ROE 8.0% 6.4%
Implementation period of the previous Medium-Term Business Plan
Results of Previous Medium-Term Business Plan
Dom
esticO
verseas
Improved earning capacity in key regions
Improved earnings of China business.
Established production system in growth markets.
Established production system in markets with high potential for growth (India, Thailand, Vietnam).
Established Regional Headquarters of Asia(Singapore).
Gained foothold in Middle East and Africa region
Established JV with Yildiz (Turkey).
Achieved technological innovation that will lead to future earnings and introduced products based on technological innovation.
Introduced Ra-O bag-type noodles.
Improved quality of Donbei and Menshokunin.
Expanded rice business (Cup Noodle Gohan, frozen onigiri, etc.).
Expanded share in mid-priced frozen pasta market.
Net sales
FY2009 FY2010 FY2011 FY2012 FY2013
Operating margin Net margin
Unit: Bill.
Net Income MarginOP MarginNet Sales
3
6
Recognition of Assumptions Underlying Current Medium-Term Business Plan
We must lay the groundwork for adaptability to changes in the market environment that are expected to take place, in Japan and abroad during the three-year period covered by the current Medium-Term
Business Plan
New Medium-Term Business Plan[Four Aspects of Environmental Change Used as Assumptions in Preparation of Medium-Term Business Plan]
Aspiring to be a Group with a solid foundation that can adapt to environmental change
International Market
Consumption on a global scale Changes in the market structure Economic growth in emerging markets Population growth in emerging markets Increasing importance of global SCM Food insecurity driven by
unseasonable weather
Human Resources Japans declining working-age population/Growth of working-age population
in emerging markets Importance of multicultural understanding and tolerance Ability to communicate with people of different races having different
attributes Development of global human resources
Competition Rise of companies based in emerging
markets Competition with local companies in
overseas market Intensification of global competition Increasing importance of alliances on
a global scale Speeding-up of alliances
Domestic Market
Rising prices of imported materialsunder the yens depreciation
Change in consumer confidence dueto consumption tax increase
Impact of TPP on imported materials Emergence of PB Declining birth rate and aging society
General Strategies for Pursuing Global Status
Allocate investment to overseas business to speed up growth.Aim to maximize earnings in domestic business.
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Strengthen platform capabilities as a global company Strengthen ability to create innovation by opening new R&D center. Actively pursue M&A opportunities. Implement financial policies emphasizing capital efficiency (ROE). Establish global human resources programs.
Strengthen earning powerof domestic business
Pursue company-wide strategic initiatives
Speed up growth in overseas business
Establish new earnings modelleveraging group strengths
Introduce a new business model (high-speedbranding system).
Reduce costs through joint buying anddistribution by group companies.
Establish business models suitablefor markets.
Mature markets: Expand earnings byimproving relationship with major distributorsand increasing business efficiency.
Growth markets: Generate earnings quickly byaggressively investing in key regions.
New markets: Establish a beachhead throughearly entry with limited investment.
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Target of the current Medium-Term Business Plan
We aim Net sales of 450 billion (Approx. 100 billion from Overseas), Operating Income of 31 billion, and achieve a 7% Operating Margin in fiscal 2016.
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Net Sales
Overseas
Operating Income
Net Income
Operating Margin
FY2013actual FY2016plan
382.8 450.0
53.5 98.5
24.0 31.0
18.9 23.0
6.3%
ROE
6.9%
6.4% 7.2%
67.2
45.0
7.0
4.1
Ordinary Income 31.0 36.0 5.0
Ordinary Income Margin 8.1% 8.0%
Billion
Overview of Initiatives in Domestic Business
In domestic business, we will promote cooperation coordinated by Nissin Foods Holdings,in addition to the strategies of individual companies.
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NISSIN FOODPRODUCTS
NISSINCISCO
Turnaround ofunprofitable restaurants
Improvement in serviceto regain ability toattract customers
Sharing ofproductioncapabilities
Promotion ofjoint buying
and distribution
Pursue dominance, focusing onregions where we havecompetitive edge On going implementation of
strategy of selection andconcentration in mainstay products
Effective utilization of PB
NISSINYORK
NISSINCHILLEDFOODSNISSIN
FROZENFOODS
MYOJO FOODS
Ongoingimplementation ofstrategy of selectionand concentration inmainstay products
Review of poor-performing products
Growth and expansion ofshare in pasta genre
Business development andgeneration of earnings inrice category
Strengthening earning power of domestic business
Nissin FoodsHoldings
AJI-NO-MINGEI
SCM optimization Acceleration of
market introduction
Radical reform ofearnings structure ofmainstay products
Development of newbrands
Promotion of implementation of BPR andintroduction of ERP
Promotion of group branding
Promoti