Calbee (2229) Investor presentation summary

Domestic business strategy

• Aims to maximize profitability by transforming the product portfolio based on customer needs and strengthening operational capabilities through digital transformation initiatives.

• Plans to expand into new categories beyond snacks and cereals, leveraging unique processing technology and strong brand value.

• Focuses on four market strategies: fun and easy, special occasions, healthy living, and gift snacks, with an emphasis on premium and health-focused products.

• Operational reforms include factory automation, AI-driven quality prediction, and value chain optimization to increase productivity and efficiency.

Overseas business strategy

• North America is prioritized for asset and resource investment, including M&A, to maximize sales and leverage strengths in the high-growth snack market.

• Brand positioning in North America targets both health-conscious and indulgence segments, with a shift to a marketing-driven growth model and expanded product lines.

• Transitioning to a global strategy execution framework, enhancing collaboration between headquarters and local teams, and strengthening digital marketing capabilities.

• In China and other regions, the focus is on localization, leveraging ingredient processing strengths, and expanding through new channels and product innovations.

Financial and growth targets

• Targets organic sales growth of 7% annually, with EBITDA growth of 8–10% and margin improvement from 12.7% to 16% by FY2036.

• Aims to increase the sales ratio from overseas and new categories to 50% by FY2036, with ROE rising to 15% and ROIC to 13% or higher.

• Overseas EBITDA growth is projected at 15% annually in the medium and long term.

• Emphasizes strengthening human capital, promoting sustainability, and improving capital efficiency as core management priorities.