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.

中期経営計画2020

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.

Creating a stable business model through reform

Business policy

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

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)

Net Sales 1,410billion
Operating income 56.0billion
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