Action to Implement Management that is
Conscious of Cost of Capital and Stock Price

Updated on June 23, 2026

Status of Relevant Initiatives

TSE requirements Our response
Analysis of current situation Accurately assess capital costs and return on capital
  • Estimate cost of equity using CAPM, earnings yield, and investor feedback
Analyze and evaluate content of initiatives and the market’s perception of them through Board of Directors
  • Analyze and evaluate capital cost and market valuation at the Board of Directors
Planning and disclosure Deliberate and establish policies, targets, plan timelines aimed at improvement, and concrete initiatives at the Board of Directors
  • Develop growth strategies incorporating capital efficiency and share price considerations at the Board level
Disclose relevant details along with assessments of current conditions in a manner easily understandable for investors
  • Disclose strategies via the Company’s website and the Integrated Report
Implementation of initiatives Promote plan-based management conscious of capital costs and share prices
  • Shift toward management focused on improving profitability and capital efficiency
Conduct proactive dialogue with investors based on public disclosures
  • Enhance engagement with investors through earnings briefings, strategy briefings, and IR/SR meetings

* This process is continuously implemented and improved based on analysis and evaluation.

Summary of Current Situation

  • Medium-term trends show improvement in ROE and EPS, while FY2025 declined
  • FY2025 year-end: PBR ~1.0x, PER ~12x — both low vs. peers
  • ROE (%)

  • EPS (JPY)

  • PBR (Multiples)
  • PER (Multiples)
  • Calculated based on actual fiscal year-end results
  • The area enclosed by the dashed lines is excluded due to losses and/or abnormal values resulting from accounting issues associated with a subsidiary

Analysis of Share Price and Cost of Capital

  • EPS +2.5x (10 years), driven by earnings growth and buybacks
  • Share price +1.4x, implying near-zero expected growth

Current Analysis of PBR

  • ROE is relatively high vs. peers, yet further improvement is expected
  • PBR remains around 1.0x, with limited medium- to long-term growth expectations

Factors behind low expectations (issues raised during meetings with investors)

  • Growth potential of
    domestic market
  • Volatility in
    overseas business
  • Conservative earnings
    projections
  • Balance sheet
    management
  • Share
    liquidity
  • Market
    capitalization

Balance Sheet Analysis

  • Total assets +¥3.4bn; investment securities broadly flat despite sales due to higher market prices
  • Equity increased, lifting the equity ratio
  • ■ Assets

  • ■ Liabilities / Net Assets

Approach Toward Corporate Value Enhancement

  • Key issue: PER
  • Increase expected growth through EPS growth, stable ROE, and enhanced IR

Medium-Term Management Plan 2027: Key Targets

(Billions of yen / %)
KPIs FY2024
actual		 FY2025
actual		 FY2027
target
Growth potential Net sales 95.5 96.3 110.0
Profitability Operating profit
 Operating profit margin		 8.7
9.1%		 6.9
7.2%		 10.0
9.1%
EBITDA (Operating profit + depreciation) 11.9 11.5 14.2
Efficiency ROE 12.1% 8.7% 10% or more
Shareholder return Payout ratio 30.3% 46.2% 40% or more
Financial discipline Shareholder equity ratio 70.1% 71.6% 60–65%
Governance Cross-shareholdings to net assets ratio 19.0% 17.9% Less than 10%
Medium- to Long-Term Vision and Medium-Term Management Plan

Cash Allocation

  • Invest for growth and enhance shareholder returns using operating CF and proceeds from cross-shareholding reductions
  • Utilize debt for inorganic investments as needed

Shareholder Return

  • FY2026 dividend: ¥110 per share (maintained in line with policy)
  • Share buybacks: ¥2.0bn in FY2026

    • ■ Dividend policy

      Consolidated dividend payout ratio of
      at least 40%

    • ■ Share buybacks

      Conduct with strategic flexibility when deemed appropriate

  • ■ Dividends per Share (JPY) and Dividend Payout Ratio

Dividend

Key Points of Business Strategy and Non-Financial Strategy

Business strategy
    • To strengthen earning power and improve profitability over the medium to long term, we plan to invest approximately 2.5x more under Medium-Term Management Plan 2027 compared with the previous plan
    • Establish a strategic investment budget incorporating opportunities for mergers, acquisitions, and business alliances
  • Overseas
    • Expand our Overseas business—a key growth driver—through a new organizational structure integrating domestic operations
    • Accelerate the ramp-up of the new plant in China
  • Japan
    • The Domestic Food business aims to achieve a slightly higher growth rate than the overall processed food market
    • Strengthen solutions primarily targeting prepared meal, ready-to-eat product, and health-conscious markets
    • Enhance proposals that reduce food loss and provide functional alternatives for raw materials difficult to source reliably
    • Focus resources on core strengths in chemical products and promote value-added development
Non-financial strategy
  • Perform medium- to long-term research and development targeting the resolution of social issues
  • Establish HR systems consistent with our human capital policy
  • Strengthen group governance

IR

  • Established a solid foundation as a Prime Market company under the previous MTMP
  • Enhance disclosure through market dialogue to improve understanding and expectations for growth

■ Activities of Previous Medium-Term Plan

Steadily expanded our range of activities

Results achieved over three years
Disclosure enhancement
  • Began publishing integrated reports
  • Started disclosing information simultaneously in both Japanese and English
  • IR website redesign
Improving communication with investors
  • Annual engagement sessions: 25 → 98
  • Secured analyst coverage
  • Launched regular SR activities and overseas NDRs
  • Held more briefings for individual investors
Feedback for management
  • Delivered quarterly reports on dialogue content
  • Incorporated feedback into medium-term plan policies

■ FY2025 Initiatives and Results

  • Overseas NDRs conducted in the first year under the new President
  • R&D facility visits resumed after five years
  • Analyst coverage increased
  • Prepared full JP/EN simultaneous disclosure (from FY2025 full-year results)
  • First retail investor briefing held in Osaka
  • Individual shareholders increased by 11,000
  • Investor meetings decreased

References