Expanding the business domain from sugar dependence into global markets and growth sectors

「With regard to “Transforming the Business Model,” we will rebuild our business portfolio through structural reform of the sugar business and further strengthening its profitability, as well as expanding the scope of and accelerating growth in the Life & Energy business.」

「The Group has worked to achieve the five pillars of Medium-Term Management Plan 2026 Diversify into Nutrition & Health by optimizing businesses within the Group under the Group-wide growth strategy's basic policies of transforming the Group business model and reallocating management resources: ① strengthening the domestic sugar business, ② expanding overseas businesses, ③ growing the Life Energy business, ④ consolidating and strengthening the Group's R&D capabilities, and ⑤ contributing to the realization of a sustainable society.」

「By securing high profitability through strengthening the domestic sugar business and operating a real estate business that generates stable cash flow, we are reallocating management resources to further accelerate the expansion of the overseas and Life & Energy businesses, which are growth areas for the Group.」

「Under the basic policies of “Transforming the Group’s Business Model” and “Reallocating Management Resources,” which form the Group-wide growth strategy, we promoted various initiatives to realize the five pillars of (1) strengthening the domestic sugar business, (2) expanding overseas operations, (3) growing the Life & Energy business, (4) consolidating and strengthening the Group’s research and development capabilities, and (5) contributing to the realization of a sustainable society by optimizing businesses within the Group.」

「By securing high profitability through strengthening the domestic sugar business and operating a real estate business that generates stable cash flow, we will reallocate management resources to the overseas and Life & Energy businesses, which the Group has designated as growth areas, accelerating the further expansion of both businesses.」

「The Group has worked to achieve Medium-Term Management Plan 2026 Diversify into Nutrition ＆ Health by optimizing businesses within the Group under the Group-wide growth strategy's basic policies of transforming the Group business model and reallocating management resources, thereby pursuing: ① strengthening the domestic sugar business, ② expanding overseas businesses, ③ growing the Life Energy business, ④ consolidating and strengthening the Group's R&D capabilities, and ⑤ contributing to the realization of a sustainable society.」

「The Group has worked to achieve Medium-Term Management Plan 2026 Diversify into Nutrition ＆ Health by optimizing businesses within the Group under the Group-wide growth strategy's basic policies of transforming the Group business model and reallocating management resources, thereby pursuing: ① strengthening the domestic sugar business, ② expanding overseas businesses, ③ growing the Life Energy business, ④ consolidating and strengthening the Group's R&D capabilities, and ⑤ contributing to the realization of a sustainable society.」

「Under the basic policies of “Transforming the Group’s Business Model” and “Reallocating Management Resources,” which form the Group-wide growth strategy, we promoted (1) strengthening the domestic sugar business, (2) expanding overseas operations, (3) growing the Life & Energy business, (4) consolidating and strengthening the Group’s research and development capabilities, and (5) contributing to the realization of a sustainable society by optimizing businesses within the Group.」

「By adopting “Transforming the Group’s Business Model” and “Reallocating Management Resources” as the basic policies of the Group-wide growth strategy and optimizing businesses within the Group, we are promoting (1) strengthening the domestic sugar business, (2) expanding overseas operations, (3) growing the Life & Energy business, (4) consolidating and strengthening the Group’s research and development capabilities, and (5) contributing to the realization of a sustainable society.」

「Under the basic policies of “Transforming the Group’s Business Model” and “Reallocating Management Resources,” which form the Group-wide growth strategy, we will promote (1) strengthening the domestic sugar business, (2) expanding overseas operations, (3) growing the Life & Energy business, (4) consolidating and strengthening the Group’s research and development capabilities, and (5) contributing to the realization of a sustainable society by optimizing businesses within the Group.」

「Under the new medium-term management plan, we will promote (1) strengthening the domestic sugar business, (2) expanding overseas operations, (3) growing the Life & Energy business, (4) consolidating and strengthening the Group’s research and development capabilities, and (5) contributing to the realization of a sustainable society by optimizing businesses within the Group under the basic policies of “Transforming the Group’s Business Model” and “Reallocating Management Resources,” which together form the Group-wide growth strategy.」

「In the overseas sugar business, positioned as one of the growth areas, we will seek to further monetize the business by accurately assessing conditions in China and Southeast Asian countries, where the business environment is changing rapidly, while working closely with local subsidiaries and affiliates.」

「While strengthening the domestic sugar business, our core business, we will reallocate management resources to the overseas sugar business and Life Energy business, both growth areas.」

「In the domestic sugar business, we will ① maintain investment for stable supply while promoting automation and labor-saving measures to address changes in the social structure, including population decline, ② pursue optimization of the entire supply chain, from production and sales to logistics, in anticipation of nationwide challenges such as labor shortages at production and logistics sites, and ③ promote competitive product development leveraging the Spoon印 and ばら印 brands, together with customer-focused sales activities that respond to changing market needs.」

「Positive factors included higher profit from the food science business and higher profit from increased sales volumes at the Chinese equity-method affiliate.」

「Although positive factors included higher profit from the food science business and higher profit from increased sales volumes at the Chinese equity-method affiliate, the Group as a whole reported lower revenue and lower profit year on year due to a decline in royalty income, construction related to the redevelopment of the former Nagata plant site in the real estate business, and a delay in the recovery of earnings at the Thai equity-method affiliate caused by a shortage of sugarcane.」

「It is therefore necessary to strengthen the foundation of the domestic sugar business while advancing initiatives in the food science, real estate, and overseas businesses, in order to establish a balanced earnings structure promptly.」

「In December 2019, the Group continued working to strengthen its new business foundation, including by establishing Liaoning Changhe Sugar Co., Ltd., a joint venture with Yingkou Xinbeifang Sugar Co., Ltd. in China.」

「Against this backdrop, while strengthening the profitability of existing businesses, the Group worked diligently to implement various measures to secure a solid business foundation by reallocating management resources to growth businesses.」

「While strengthening the profitability of existing businesses, we have actively deployed Group management resources to growth areas in response to these developments and worked to establish a new business foundation. During the consolidated fiscal year, we made new investments in Singapore, China, and Thailand, steadily laying the groundwork for the future with the aim of capturing growth in Asia.」

「Against this backdrop, while strengthening the profitability of existing businesses, the Group invested in SIS’88 Pte Ltd and 中糧糖業遼寧有限公司 to secure a solid business foundation by reallocating management resources to growth businesses.」

「Although the environment surrounding the domestic sugar business is becoming increasingly challenging against a backdrop that includes the declining birthrate and population aging, we have considered expanding the food science business as a new growth platform and creating business opportunities overseas, particularly in Asia's rapidly growing markets. This transaction is one concrete measure to advance that growth strategy.」

「Against this backdrop, while strengthening the profitability of existing businesses, the Group worked diligently to implement various measures to secure a solid business foundation by reallocating management resources to growth businesses.」

「In addition to maintaining and strengthening the competitiveness of the domestic sugar business, we position earnings-structure reform through global expansion and expansion into growth businesses as a medium- to long-term management strategy.」

「Sugar accounts for more than 80% of the Group's net sales, and the business is highly exposed to agricultural policy. Domestic sugar demand is expected to decline gradually as Japan's population ages and contracts. In light of developments surrounding the TPP and new economic partnership agreements, we aim to further strengthen our competitiveness, while recognizing that reforming our earnings structure through global expansion and expansion into growth businesses is a medium- to long-term management issue.」