Strengthening the foundation and focusing the allocation of management resources

「Regarding the financial strategy, we have set ROA and EBITDA as the target management metrics and, while reducing interest-bearing debt, are targeting a net debt-to-equity ratio of 0.7 or less through the strategic reconfiguration of assets.」

「We will advance structural reforms through further selective concentration of management resources and make our earnings capabilities more robust,」

「Regarding the review of the business portfolio, we are concentrating management resources on the food and feed businesses, while actively allocating management resources to growth areas and promoting personnel exchanges among Group companies.」

「In March 2022, the Company reorganized the Group. By selling all or part of its shares in Hayashikane Computer Co., Ltd. (information processing business) and Hayashikane Refrigeration Co., Ltd. (cold storage business), which are classified as "Other" businesses in the consolidated financial statements, the Company excluded both companies from the scope of consolidation, accelerated the concentration of management resources on its principal food and feed businesses, and optimized its business portfolio.」

「At a Board of Directors meeting held on 14 February 2022, the Company resolved to transfer all or part of its holdings in its consolidated subsidiaries Hayashikane Computer Co., Ltd. and Hayashikane Refrigeration Co., Ltd., as well as its equity-method affiliate 株式会社ベツケイ. The purpose of the share transfers is to exclude Hayashikane Computer Co., Ltd. (information processing business) and Hayashikane Refrigeration Co., Ltd. (cold storage business), which are classified as "Other" businesses in the consolidated financial statements, from the scope of consolidation, thereby accelerating the concentration of management resources on the Company's principal food and feed businesses and establishing a solid earnings base. Business separation date 31 March 2022 (scheduled)」

「As the domestic market on which the food industry has traditionally been based is expected to contract due to population decline and aging, the Company changed its organizational structure effective 1 April 2021 by consolidating the Fisheries and Functional Foods Division and the Livestock Foods Division into the Functional and Foods Division. The change was intended to reduce costs through more efficient administrative and planning and development functions, make more effective use of human resources and assets, and accelerate decision-making. It also reflected the Company's judgment that consolidating the segments would better reflect the actual management structure.」

「Regarding the review of the business portfolio, we are working on initiatives including organizational reforms, with a view to optimizing the portfolio through selective concentration that reflects changes in the business environment, without being constrained by the existing structure.」

「Regarding the promotion of growth investment, we will make focused investments in areas expected to support the expansion of growth businesses, increased production and the establishment of a profit base. Regarding the review of the business portfolio, we will work to optimize the portfolio through selective concentration that reflects changes in the business environment, without being constrained by the existing structure.」

「Regarding the financial foundation, we will improve our financial position by reducing interest-bearing debt and inventories, while making focused investments in growth businesses and areas expected to generate higher profits,」

「As part of strengthening the foundation, we continued to reinforce the three pillars of maximum sales, highest quality and minimum expenses, which were the basic policies of the previous plan.」

「Regarding the strengthening of the foundation, we will rigorously review operations across the organization and screen them by importance, while concentrating our limited resources, including through the discontinuation of activities, on those of higher importance. We will strengthen the organization of divisions that should be expanded and work to establish the structure needed for the future.」

「Under this management plan, we aim to achieve sustainable business development by strengthening our business structure to secure stable profits, based on the selective concentration of management resources and our sales expansion strategy to date.」

「As we strengthen the organization of divisions to be expanded and work to establish the structure needed for the future, we opened the Osaka branch in April this year to expand our sales locations by strengthening our workforce.」

「We will rigorously review operations across the organization and screen them by importance, while concentrating our limited resources, including through the discontinuation of activities, on those of higher importance. We will also strengthen the organization of divisions that should be expanded and work to establish the structure needed for the future.」