NH Foods (2282) Investor Day 2025 Presentation summary

Processed foods business strategy and overseas expansion

• Aims to achieve a 4% business profit margin by FY2026 through structural reform and growth strategies, including product mix improvement and production efficiency gains.

• Plans to consolidate production lines by 20% and enhance core brands, targeting ¥90 billion in Schau Essen net sales by 2026.

• Expanding globally by establishing world-class brands, leveraging area-specific strategies, and deploying expertise across regions.

• Focus on North America and ASEAN for growth, utilizing recent acquisitions to strengthen manufacturing and sales channels.

• Integration of overseas businesses to maximize value chain and global competitiveness, with operations in 9 countries.

Fresh meats business transformation and value chain optimization

• Targets ¥50 billion business profit in Japan by 2029, focusing on sustainable supply and value chain transformation.

• Implements structural reforms in domestic pork and chicken production, expanding branded product output and improving efficiency.

• Enhances procurement flexibility for imported meats and leverages AI-driven demand forecasting.

• Expands Australian feedlots and branded beef ratio, aiming for stable profit and improved product mix.

• Strengthens sales and logistics networks, shifting marketing to customer touchpoints and expanding processed product sales.

Value based management (VBM) and capital allocation

• Launches VBM to enhance corporate value, focusing on both short- and long-term perspectives for capital allocation and profitability.

• Sets targets of ROE ≥9% and ROIC ≥7%, with improved PBR and strategic investments in growth areas.

• Reduces cross-shareholdings, optimizes capital structure, and increases dividends to improve financial efficiency.

• Utilizes value maps for in-house valuation, identifying gaps between intrinsic and market value.

• Strengthens business portfolio management, prioritizing resource allocation to high-value and growth businesses.