Rebuilding the Group’s production structure and pursuing group synergies

「The Group is working to improve productivity through the introduction of a new system across the Group and to establish a stable raw material procurement system capable of responding flexibly to market conditions.」

「During the interim consolidated accounting period, approximately 1 year had passed since the TATEBAYASHI Creation Center (TCC) began full-scale operations. As a result of continued efforts to improve productivity, operations have proceeded smoothly.」

「The TATEBAYASHI Creation Center, which began operations last year, has been gradually increasing its production capacity through additional capital investment and process improvements.」

「TCC, which began full-scale operations in January 2024, will work to further improve productivity in order to support future sales growth.」

「In addition, the company ended production at the Hatogaya Plant, which had operated for 88 years as a core plant of the Group, and transferred production to the TATEBAYASHI Creation Center. The TATEBAYASHI Creation Center was completed in December 2023.」

「At the TATEBAYASHI Creation Center, completed in April 2023, the company has already begun producing its renewed core products and plans to complete the center in December 2023 after installing the remaining equipment.」

「Aiming to create a flagship division that consolidates not only production but also product-related functions and generates value, the company completed the TATEBAYASHI Creation Center in April 2023. The center is intended to consider the environment, further improve productivity, procure sustainable raw materials, develop ideas, take on new challenges and create new value. It is scheduled for completion as planned in December 2023.」

「The TATEBAYASHI Creation Center, established to improve the Group's production efficiency, reduce environmental impact, and establish a safe and stable production system, was completed on 12 April 2023.」

「Net cash used in investing activities was ¥3.278 billion, compared with ¥71 million in the same period of the previous year. This mainly reflected ¥3.829 billion in payments for the acquisition of property, plant and equipment.」

「The company is proceeding with production system restructuring to improve the Group's production efficiency, reduce labor requirements and environmental impact, and establish a safe and stable production system, consolidating its main production operations into 2 plants, the company's Tatebayashi Plant and the Nishinomiya Plant of イカリソース株式会社.」

「Regarding the restructuring of the production system, the Board of Directors approved in September 2021 the "Basic Detailed Implementation Design for Restructuring the Production System of the Group" to improve production efficiency, reduce labor requirements and environmental impact, and establish a safe and stable production system. The Group currently operates with 3 plants: BULL-DOG SAUCE CO.,LTD.'s Hatogaya Plant and Tatebayashi Plant, and the Nishinomiya Plant of its subsidiary イカリソース株式会社. Through the production system restructuring, the company plans to operate with 2 plants, the Tatebayashi Plant and Nishinomiya Plant, by around December 2023, thereby improving production efficiency and reducing labor requirements.」

「Meanwhile, the Group continued to thoroughly review and reform operations through various operational and work-style reforms, revisions to related systems, and initiatives to enhance Group synergies.」

「In addition, the company established an internal project team to further increase synergies among the functions of the Group companies, reviewing and standardizing existing operations across the Group in areas including raw material procurement, sales operations and information sharing.」

「At a meeting of the company's Board of Directors held on 13 November 2019, the company resolved to close the Hatogaya Plant and consolidate its production sites. The closure is scheduled for fiscal 2023 or later.」

「At a meeting of the company's Board of Directors held on 13 November 2019, the company resolved to consolidate its current 3 production sites into 2 production sites.」

「Against this backdrop, the Group continued to strengthen its management foundation under this fiscal year’s themes: ① promoting operational reform, ② establishing the new brand, and ③ expanding sales of foodservice products.」

「Against this backdrop, to achieve the medium-term management plan, the Group continued to strengthen its management foundation under this fiscal year’s themes: ① considering an optimal production structure, ② promoting work-style reform, and ③ creating further Group synergies.」

「Representative Director, Executive Vice President; Executive Officer; Chairman, Production System Restructuring Project Committee; Representative Director, Executive Vice President; Executive Officer; Head of Production, Raw Material Procurement and Quality Control; Mikuni Keizo (三國 惠藏); 1 November 2018」

「Against this backdrop, to achieve the medium-term management plan, the Group is strengthening its management foundation under this fiscal year’s themes: ① promoting work-style reform, ② considering an optimal production structure, and ③ creating further Group synergies.」

「For fiscal 2018, the company identified the promotion of work-style reform, restructuring of the group's production system, and pursuit of further group synergies as key challenges and is addressing them across the company.」