Vision for 2030 and Medium-term Business Plan

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

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.