Vision for 2030 and Medium-term Business Plan

2030 Vision

Toward 2030

Establish our pivotal growth drivers in overseas markets and new food domains

2030 Target

  • ●Overseas sales ratio

    Over 40%

  • ●New food areas sales ratio

    Over 20%

Medium-term business plan(FY2020/3 to FY2024/3)

Core Policy

Transformation and challenge toward achieving next-generation growth

Through building a foundation that responds to changes in the business environment, we will realize sustainable growth with innovation and challenge

Medium-term Business Plan Management Targets (FY2024/3)

Financial Indices

Calbee Group

Consolidated net sales  ¥310 billion

Consolidated operating profit ¥40 billion (Operating margin)13%

Domestic business

Domestic operating margin 15%

Overseas business

Overseas sales ¥80billion

(Overseas sales ratio)  25%

Efficiency

ROE
12%

Non-financial Indices

Salt equivalent in products *1 20% reduction
Protein-rich product*2 sales ratio 10%
Female manager ratio *3  Over 30%
Domestic procurement volume of potatoes 400,000 tons
Food Communications*4 participants

400,000 people

Food loss 20% reduction
Greenhouse gas emissions [2030] 30% reduction
  • *1 Salt content of all products sold as a percentage of the total weight of products sold
  • *2 More than 13% of total energy consumption accounts for protein
  • *3 Achieve 30% by the fiscal year ending March 31, 2022
  • *4 Food education activities such as Calbee snack school and factory tours

Food loss reduction targets for Calbee, Inc. and domestic Calbee Group, other indices for Calbee, Inc.

Key Initiatives of Medium-term Business Plan

We have defined the 6 key initiatives which consists of three business strategies (1 to 3) and three foundations (4 to 6) that support them.

1Existing domestic businesses:
Create new value and realize high profit
Reform snack business
  • ・Achieve both multiple products of new value that meet diverse needs and high profitability
  • ・Diversify and expand contact points with customers such as inbound demand and gifts
  • ・Go beyond snacks to offer “fine snacks”*1 —healthy light food
Enhance cereal business
  • ・Establish new product brands that pursue functionality and strengthen the Frugra brand
  • ・Increase the number of occasions for easy meals*2 other than breakfast by expanding value added cereal products
  • ・Shift from "morning Frugra business" to "lifestyle-support food business"
Strengthen business base
  • ・Optimize production and supply by strengthening supply chain management (SCM)
  • ・Improve productivity by promoting digital transformation
  • ・Promote strategic partnerships with distributors
  • *1 Fine snack: Light meals utilized taste of natural ingredients by Calbee, such as low-salt and energy-producing nutrient balance-conscious products based on taste, fun, and healthy
  • *2 Easy meals: A meal simple, delicious and healthy to anytime, anywhere
2Overseas business:
Establish revenue-generating bases in four key regions
North America
  • ・Raise penetration of our brand and create new brands that utilize Japan Quality
  • ・Expand shelf space and e-commerce channels
Greater China
  • ・Raise brand awareness leveraging inbound demand
  • ・Strengthen collaboration with e-commerce partners
  • ・Optimize offline sales locations
United Kingdom
  • ・Optimize and streamline organizational structure between Calbee (UK) Limited and Seabrook Crisps Limited (Seabrook)
  • ・Penetrate Calbee by Seabrook (Integration of Japanese Calbee’s production and Seabrook brands)
Indonesia
  • ・Promote delivery to traditional trade
  • ・Expand lineup of potato-based snacks
3New businesses:
Establish businesses in new food areas
Establish new businesses with raw materials’ point of origin
  • ・Expand business in food areas such as side dishes and ready-made meals by utilizing internal/external resources (OEMs, etc.)
Establish new raw materials processing technologies
  • ・Establish new technologies that can process raw materials deliciously without losing their various special functionality and nutrition
Build a new revenue-generating model
  • ・Create diverse service-type revenue businesses derived from potato-related businesses (consulting on cultivation techniques, supporting farm operations, etc.)
4Management base:
Reform base to support global management and sustainable growth
Develop human resources and create framework to strengthen ability to respond globally
  • ・Strengthen the development of next management talent with capabilities of people management and autonomous execution
  • ・Strengthen governance by promoting and nurturing personnel exchanges within the Group
  • ・Develop IT talents to promote digital transformation
  • ・Promote diversity and inclusion
  • ・Improve performance through workstyle reform
Enhance R&D functions to support sustainable growth
  • ・Strengthen R&D functions and optimize the locations to accelerate overseas development and new businesses
  • ・Utilize open innovation and create framework for agile product development
5Co-creation with society: Achieve a sustainable society
Strengthen partnerships with producers
  • ・Support for agricultural activities to maintain and revitalize agricultural infrastructure in order to increase procurement of high-quality domestic raw materials
Develop and deepen continuous relationships with customers
  • ・Maintain and improve relationships with customers through food communication: food education activities and factory tours
Advance CSR activities centered on supporting local communities
  • ・Contribute to rich and active local communities, such as supporting people in difficulties accessing food
Promote sustainable supply chain initiatives
  • ・Work to reduce greenhouse gas emissions
  • ・Reduce food losses by expiration date extension and making effective use of resources
  • ・Promote procurement that takes into consideration human rights and the environment
6Collaboration with PepsiCo:Strengthen collaboration with PepsiCo

We will explore ways to strengthen our alliance through new business tie-ups by utilizing the business foundations and resources of PepsiCo, which owns 20% of our shares and concludes strategic alliance agreements.

Financial and Cash Flow Strategy

5 Years Operating Cash Flow Allocation(FY2020/3 to FY2024/3)

Operating cash flows
Approx. ¥160bn

Cash on hand
Approx. ¥20bn

Capital investment
Approx. ¥60bn

Invest to grow/raise productivity in existing businesses, and to strengthen overseas production structure

Growth investment
Approx. ¥80bn

Invest to acquire foundation for growth based on a long-term perspective, including new businesses, promotion of Digital transformation, M&A, etc.

Shareholder returns
Approx. ¥40bn

Aim for dividend payout ratio over 40%,
implement sustainable shareholder returns

Please refer the details on the “Calbee Group Financial Results for fiscal year ended March 31, 2019”.

Calbee Group Financial Results for fiscal year ended March 31, 2019 (3.9MB)