Medium-Term Management Plan
The NH Foods Group has formulated Medium-Term Management Plan 2020, a business plan covering the three years from April 1, 2018 to March 31, 2021 (from the 74th fiscal year to the 76th fiscal year).
Medium-Term Management Plan 2020:Overview
The theme of Medium-Term Management Plan 2020 is “Building systems that pave the way to the future.” To ensure sustainable growth of the Group in a rapidly changing environment and to contribute to realization of a sustainable society in regard to the food and health fields, we have formulated five business policies.
Building systems that pave the way to the future
- Throw off preconceived notions and short-term mentality, focusing more on the long term.
- Enhance consistency of company-wide strategy and business segment strategy, and also promote innovation to improve profitability.
- Focus on results and build structures for achieving the targets of the current medium-term management plan.
Medium-Term Management Plan 2020 : Structural
In order to systematically support achievement of the management strategies (business policies, company-wide strategy, and business segment strategies), we have formulated functional strategies and put in place a structure for smooth promotion of business. We will continue to pursue “Hight-level Management for No. 1 Quality” as our foundation.
Business policy (1): Strengthen profitability by improving the efficiency of existing businesses
- Formulate and promote plans for business, products, channel strategy and value chain from a medium-and long-term perspective. Channel strategy to be led by the organization, Group Sales Planning Department.
Business policy (2): Create value through dialog with consumers
- Promote consumer understanding in the Company and reinforce marketing activities, led by the new organization, Lifestyle Research Office.
Business policy (3): Enhance and develop technological capabilities for conceptualizing and realizing the future of food
- Respond to changes in environment by promoting research activities and technology investment from a long-term viewpoint focused on the future.
Business policy (4): Change gears in overseas market deployment
- Strive to expand net sales and revenue in the global market.
Business policy (5): Pursue sustainability
- Work to solve social problems through business activities focused on the “five CSR material issues” based on compliance.
Functional strategy : Strengthen strategy formulation and promotion functions
- Seize changes in the social environment, enhance functions for developing and testing hypotheses and formulate and implement strategies from a group-focused perspective
- Strengthen corporate governance functions → Build a highly transparent management structure
Functional strategy : Strengthen structures to increase sustainability of business activities
- Invest in human capital and rationalize personnel composition
- Optimize quality assurance systems (comply with international certification requirements)
- Strengthen network development functions
- Improve financial strategy and capital policy
Functional strategy : Strengthen internal and external communication systems
- Strengthen information distribution and communication functions to allow stakeholders to accurately understand company activities
Quantitative target (FY2021/3)
|Operating income ratio||4.0%|
|ROE||7.0％ or above|
|ROIC||5.5％ or above|
※ROE(Return on equity)=Net income attributable / Average NH Foods Ltd. shareholders' equity