Slides
Page 1
Business Performance Presentation for H1 Fiscal 2026 Ended September 30, 2025 Kikkoman Corporation November 7, 2025 1
Page 2
Themes Medium-Term Management Plan Shozaburo Nakano, President and CEO Performance for H1 Fiscal 2026 and Full-year Forecast for Fiscal 2026 Toshiyuki Sato, Corporate Officer and CFO 2
Page 3
FY2026–2028 Medium-Term Management Plan Shozaburo Nakano President and CEO 3
Page 4
Themes 4 (1) Progress of the Medium-Term Management Plan (2) Capital Policy and Cash Allocation under the Medium-Term Management Plan (3) ROE Target Beyond the Medium-Term Management Plan Period
Page 5
Medium-Term Management Plan: Targets and Key Objectives 5 Continue growth and maintain/improve profitability Utilize assets for the future Solve social issues through business activities Sales Growth CAGR 5% or more Business Profit Margin 10% or more ROE 12% or more FY3/2028 FY3/2028 * Excl. Forex fluctuation Targets Key Objectives
Page 6
Progress of the Medium-Term Management Plan: Consolidated Results 6 5% or more Business Profit Magin 10% or more FY2028 ※為替差除き Sales Growth CAGR Excl. FX fluctuation Targets H1 actual Full year forecast Revenue YoY excl. FX fluctuation 103.9% 104.6% BP Margin 11.5% 10.7% * Revenues exclude the effect of foreign exchange fluctuation and are indexed with FY3/2025 as 100. 100 105 10.9% 10.7% 10% or more 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 0 50 100 FY3/25 Actual FY3/26 Forcast FY3/28 Target CAGR 5% or more Revenue and business profit margin • Progress toward achieving our medium-term management plan targets is generally on track. Although we have short-term issues in some segments, our medium- to long-term growth outlook remains unchanged. • While continuing to invest for future growth, we aim to achieve sustained growth in our overseas soy sauce and wholesale businesses across regions, to also return our domestic operations to a growth trajectory, and to improve profitability.
Page 7
Progress of the Medium-Term Management Plan: Utilize business resources 7 Utilize business resources for sustainable growth Human resources Capital R&D and Technology Information Growth markets New businesses Profitability improvement Business resources Demand creation Human resources： • Promoting our human resource strategy, including improving the staffing of key positions • Implementing measures to improve employee engagement Information (DX) ： • Establishing a data infrastructure and utilizing the data for product development, marketing, and logistics • Strengthening information security
Page 8
Capital Policy and Cash Allocation 8 FY2026–2028 Operating CF ¥280.0bn* Cash and deposits ¥100.0bn (As of March 2025） Cash and deposits: Reduce cash and deposits through the above initiatives to enhance asset efficiency Capital investment Actively pursuing capital investment while assessing investment return • Investments including increased production to further drive growth • Investments to strengthen existing businesses • Replacement investments for maintenance, preservation, and environmental measures Investment for growth and profitability improvement Proactively evaluate and invest in new businesses, including M&A • Investment in DX, human resources, R&D • Addressing social issues • New businesses, M&A Shareholder returns Enhance and continue share repurchases • Consolidated dividend payout ratio target: 35% or more; continue to pay progressive dividends • Continue acquisition of treasury stock *exchange rates: 145 yen/USD, 160 yen/EUR Debt Dividend: ¥70.0bn ¥170.0bn* Overseas: ¥120.0bn + Japan: ¥50.0bn Soy sauce ¥80.0bn Wholesale ¥40.0bn Investment for growth and profitability improvement Update
Page 9
0 1,000 2,000 3,000 4,000 5,000 6,000 キャッシュイン ・手元キャッシュ キャッシュアウト ・手元キャッシュ Image of Cash Allocation (for reference) 9 Operating CF ¥280.0bn Cash and deposits ¥100.0bn Debt Investment for growth and profitability improvement (M&A, etc.) Capital investment ¥170.0bn Shareholder returns Cash in Cash on Hand Cash out Cash on Hand Leveraging debt for M&A and other transactions Reduce cash and deposits through enhanced shareholder returns and other measures Cash and deposits
Page 10
ROE Target Beyond the Medium-Term Management Plan Period 10 Early in the period after FY3/2031, Targeting ROE of 15% ⚫ Maintain sales growth while improving business profit margins ⚫ Actively make capital and market investments to support growth ⚫ Proactively evaluate and invest in new businesses, including M&A ⚫ Maintain shareholder returns while improving capital efficiency
Page 11
Performance for H1 Fiscal 2026 and Full-year Forecast for Fiscal 2026 Corporate Officer and CFO Toshiyuki Sato 11
Page 12
Agenda 12 (1) Performance for H1 Fiscal 2026 (2) Full-year Forecast for Fiscal 2026
Page 13
Agenda 13 (1) Performance for H1 Fiscal 2026 (2) Full-year Forecast for Fiscal 2026
Page 14
(1) Performance for H1 Fiscal 2026—summary 14 FY2026–2028 Medium-term Management Plan Targets ⚫ Revenue and business profit increased, excluding the effect of foreign exchange fluctuation. ⚫ Although US tariff policies caused disruptions and delays, the situation was stabilizing in H1. ⚫ Soy sauce in Europe remained strong. ⚫ Domestic soy milk grew double digits. Key Points for H1 Sales Growth CAGR 5% or more BP Margin 10% or more FY3/2028 *Excl. FX fluctuation H1 YoY YoY excl. FX impact (Billions of yen) Actual Change % Change % Revenue 358.6 +3.0 100.9% +14.0 103.9% Business profit 41.2 (1.4) 96.8% +0.2 100.5% BP Margin 11.5% (0.5)pt Profit attributable to owers of parent 31.3 (3.4) 90.1% (2.2) 93.7%
Page 15
(1) Performance for H1 Fiscal 2026—summary 15 Q1 YoY YoY excl. FX impact Q2 YoY YoY excl. FX impact (Billions of yen) Actual Change % Change % Actual Change % Change % Revenue 175.7 (2.6) 98.6% +6.4 103.6% 183.0 +5.6 103.2% +7.6 104.3% Business Profit 19.5 (2.4) 89.2% (1.5) 93.0% 21.7 +1.0 104.8% +1.7 108.4% BP Margin 11.1% (1.2)pt 11.9% +0.2pt Profit attributable to owers of parent 15.3 (2.8) 84.7% (2.1) 88.6% 16.0 (0.7) 95.9% (0.1) 99.3% Key Points for H1 Q1, Q2 ⚫ Although we were impacted by US tariff policies in 1Q, the situation began stabilizing in 2Q. ⚫ Each domestic and overseas business recovered in 2Q from the stagnation and slump in 1Q. ⚫ The impact of currency conversion was large in 1Q, but smaller in 2Q.
Page 16
(1) Performance for H1 Fiscal 2026 Foods—Manufacturing and Sales in North America 16 Key Points for YoY comps excl. FX impact ⚫ Soy sauce exports to Canada decreased, with some reduction in industrial-use soy sauce, as a result of US tariff policy. ⚫ Recovery began after the retaliatory tariffs imposed by Canada were eliminated on September 1, 2025. ⚫ H1 business profit was in line with last year, reflecting increased market investments, including advertising, as well as inventory fluctuations. ⚫ We returned to a growth trajectory in 2Q, and the medium-term growth trend remains unchanged. H1 YoY excl. FX impact Q1 YoY excl. FX impact Q2 YoY excl. FX impact (Billions of yen) Actual Change % Actual Change % Actual Change % Soy sauce 49.6 +0.6 101.1% 23.9 (0.4) 98.6% 25.7 +0.9 103.7% Other foods 0.6 +0.0 103.0% 0.2 (0.0) 88.0% 0.4 +0.1 117.9% Revenue 50.2 +0.6 101.1% 24.2 (0.4) 98.5% 26.0 +1.0 103.9% Business Profit 15.0 (0.0) 99.8% 7.3 (0.0) 99.7% 7.7 (0.0) 99.9% BP Margin 29.9% (0.4)pt 30.1% +0.3pt 29.7% (1.2)pt
Page 17
(1) Performance for H1 Fiscal 2026 Foods—Manufacturing and Sales in Europe (soy sauce business) 17 Key Points for YoY comps excl. FX impact ⚫ Maintained strong growth, with increased revenue and profit, and higher profit margin. ⚫ 2Q continued to perform well, following 1Q. ⚫ Maintained steady growth, toward double-digit sales growth for the third consecutive year. H1 YoY excl. FX impact Q1 YoY excl. FX impact Q2 YoY excl. FX impact (Billions of yen) Actual Change % Actual Change % Actual Change % Revenue 17.8 +1.6 109.8% 8.9 +0.8 110.0% 8.9 +0.7 109.6% Business Profit 5.2 +0.5 111.6% 2.6 +0.2 107.7% 2.6 +0.3 116.0% BP Margin 29.3% +0.5pt 29.4% (0.7)pt 29.3% +1.6pt
Page 18
(1) Performance for H1 Fiscal 2026 Foods—Wholesale in North America 18 Key Points for YoY comps excl. FX impact ⚫ Responsive measures were taken despite disruptions in purchasing and inventory adjustments caused by US tariff policy. ⚫ Business profit margin remained at a high level, due to the advancement of data analysis and operational efficiency through the use of IT. ⚫ H1 revenue and profit increased, in line with the initial forecast. H1 YoY excl. FX impact Q1 YoY excl. FX impact Q2 YoY excl. FX impact (Billions of yen) Actual Change % Actual Change % Actual Change % Revenue 149.2 +12.1 108.4% 72.9 +5.7 107.9% 76.3 +6.4 108.9% Business Profit 11.6 +0.4 103.0% 5.6 (0.3) 94.9% 6.0 +0.7 112.5% BP Margin 7.8% (0.4)pt 7.7% (1.0)pt 7.8% +0.2pt
Page 19
37.4H1 FY2025 Impact of difference in revenue Impact of fixed manufacturing costs, etc. Impact of SG&A expenses Translation defferences 36.0H1 FY2026 (0) (2.1) (1.5) Impact of raw materials, etc. 2.0 0.3 (1) Performance for H1 Fiscal 2026 Overseas Business Profit: Major Change Factors 19 Unit: Billions of yenOverseas (1.4) billion (YoY) Key Points ⚫ The impact of difference in revenue was driven by the increase in sales of soy sauce and wholesale. ⚫ The impact of SG&A expenses was driven by the increase in fixed expenses for food manufacturing and sales, including marketing expenses, as well as higher fixed costs for wholesale.
Page 20
(1) Performance for H1 Fiscal 2026 Business in Japan 20 Key Points ⚫ Revenue and profit increased in domestic H1, with a rise in profit margin. While profit declined in 1Q, it recovered in 2Q. ⚫ Foods—Manufacturing and Sales experienced revenue growth in soy sauce, food products, and beverages. ⚫ Soy milk experienced double-digit sales growth through effective marketing initiatives. ⚫ Biochemical business was on a recovery trend. H1 YoY Q1 YoY Q2 YoY (Billions of yen) Actual Change % Actual Change % Actual Change % Foods—Manufactuaring and Sales 80.8 +2.4 103.1% 40.0 +0.8 102.1% 40.9 +1.6 104.0% Others 10.9 (0.1) 99.1% 5.4 (0.1) 98.8% 5.5 (0.0) 99.4% Eliminations (6.2) +0.0 - (3.1) +0.1 - (3.1) (0.0) - Revenue 85.6 +2.4 102.8% 42.3 +0.8 102.0% 43.3 +1.5 103.7% Foods—Manufactuaring and Sales 5.8 +0.6 110.7% 2.5 (0.3) 90.3% 3.3 +0.8 133.8% Others 0.9 +0.1 112.6% 0.5 +0.1 133.8% 0.4 (0.0) 93.9% Business Proft 6.7 +0.7 110.8% 3.0 (0.2) 95.2% 3.7 +0.8 128.0% BP Margin 7.8% +0.5pt 7.1% (0.5)pt 8.5% +1.6pt
Page 21
21 (1) Performance for H1 Fiscal 2026 Business Profit in Japan: Major Change Factors 6.0 1.1 0.1 (0.3) 6.7 H1 FY2025 Impact of difference in revenue and structual strengthening Impact of raw materials, etc. Impact of advertising expenses Impact of depreciation and amortization Impact of other fixed expenses, etc. H1 FY2026 (0.2) Unit: Billions of yenJapan +0.7 billion (YoY) Key Points ⚫ The impact of difference in revenue was primarily driven by increased soy milk sales. ⚫ The impact of advertising expenses was primarily driven by marketing initiatives for soy milk. ⚫ The impact of other fixed expenses, etc. was driven by increases in expenses, such as labor costs and other related expenses.
Page 22
(1) Performance for H1 Fiscal 2026 Financial Position 22 Cash and cash equivalents ¥104.6 bn ¥(1.6) bn The balance decreased due to capital investments and shareholder returns, despite higher profit. Property, plant and equipment ¥205.6 bn +¥16.3 bn Investment in the new plant in the US progressed as planned. Total equity attributable to owners of the parent ¥524.0 bn +¥15.4 bn The acquisition of treasury stock progressed. Valuation difference and foreign exchange adjustments have increased. Key points May 31, Sep. 30, Change (Billions of yen) 2025 2025 Current assets 334.8 330.2 (4.7) Non-current assets 344.6 369.3 +24.7 Total assets 679.4 699.5 +20.1 Total liabilities 163.4 168.2 +4.8 Total equity 516.0 531.3 +15.2
Page 23
Agenda 23 (1) Performance for H1 Fiscal 2026 (2) Full-year Forecast for Fiscal 2026
Page 24
(2) Full-year Forecast for Fiscal 2026 24 Full year YoY YoY excl. FX impact vs. prior forcast vs. prior forcast excl. FX impact (Billions of yen) Forcast Change % Change % Change % Change % Revenue 731.0 +22.0 103.1% +32.5 104.6% (13.5) 98.2% (21.0) 97.2% Business Profit 78.0 +0.7 100.9% +2.1 102.7% +0.4 100.5% (1.0) 98.7% BP Margin 10.7% (0.2)pt +0.3pt Profit attributable to owers of parent 60.0 (1.7) 97.3% (0.6) 99.1% +0.4 100.7% (0.6) 98.9% Key points for the revised forecast ⚫ The exchange rate was revised from 145.00 yen/USD to 148.24 yen/USD. ⚫ The impact of US tariffs on the wholesale business in North America was revised. ⚫ Each segment was revised reflecting the performance in H1. ⚫ Business profit was revised upward from the initial forecast.
Page 25
(2) Full-year Forecast for Fiscal 2026 25 H1 YoY YoY excl. FX impact H2 YoY YoY excl. FX impact (Billions of yen) Actual Change % Change % Forecast Change % Change % Revenue 358.6 +3.0 100.9% +14.0 103.9% 372.4 +19.0 105.4% +18.5 105.2% Business Profit 41.2 (1.4) 96.8% +0.2 100.5% 36.8 +2.1 106.1% +1.9 105.4% BP Margin 11.5% (0.5)pt 9.9% +0.1pt Profit attributable to owers of parent 31.3 (3.4) 90.1% (2.2) 93.7% 28.7 +1.7 106.5% +1.6 105.9% Key points for H2 forecast ⚫ We expect recovery in H2, forecasting a revenue and profit increase of over 5%. ⚫ Soy sauce in North America will return to its normal growth trajectory. ⚫ Domestic soy milk is forecasted to continue its growth in H2.
Page 26
(2) Full-year Forecast for Fiscal 2026 Foods—Manufacturing and Sales in North America 26 Key points for YoY comps excl. FX impact ⚫ Soy sauce sales to Canada are expected to recover after September. ⚫ H2 is expected to return to the growth trajectory, and the full year is forecasted to show increased revenue and profit. Full year YoY excl. FX impact H1 YoY excl. FX impact H2 YoY excl. FX impact (Billions of yen) Forecast Change % Actual Change % Forcast Change % Soy sauce 100.7 +2.3 102.3% 49.6 +0.6 101.1% 51.1 +1.8 103.5% Other foods 1.0 (0.1) 94.2% 0.6 +0.0 103.0% 0.4 (0.1) 83.6% Revenue 101.7 +2.3 102.2% 50.2 +0.6 101.1% 51.5 +1.7 103.3% Business Profit 28.5 +0.5 101.8% 15.0 (0.0) 99.8% 13.5 +0.5 104.2% BP Margin 28.0% (0.1)pt 29.9% (0.4)pt 26.3% +0.2pt
Page 27
(2) Full-year Forecast for Fiscal 2026 Foods—Manufacturing and Sales in Europe (soy sauce business) 27 Key points for YoY comps excl. FX impact ⚫ H2 is expected to continue its strong growth. ⚫ Double-digit growth is expected for three consecutive years. ⚫ An increase in profit margin is also expected. Full year YoY excl. FX impact H1 YoY excl. FX impact H2 YoY excl. FX impact (Billions of yen) Forecast Change % Actual Change % Forcast Change % Revenue 35.5 +3.2 110.3% 17.8 +1.6 109.8% 17.7 +1.6 110.8% Business Profit 8.3 +0.9 113.1% 5.2 +0.5 111.6% 3.1 +0.4 116.1% BP Margin 23.4% +0.6pt 29.3% +0.5pt 17.5% +0.8pt
Page 28
(2) Full-year Forecast for Fiscal 2026 Foods—Wholesale in North America 28 Key points for YoY comps excl. FX impact ⚫ The sales growth trend in H2 is expected to remain unchanged. ⚫ Profit margin will remain at a high level for the full year, as a result of strengthening data analysis and improving business efficiency. ⚫ Revenue and profit for the full year are expected to increase. Full year YoY excl. FX impact H1 YoY excl. FX impact H2 YoY excl. FX impact (Billions of yen) Forecast Change % Actual Change % Forcast Change % Revenue 307.7 +22.2 107.5% 149.2 +12.1 108.4% 158.5 +10.1 106.7% Business Profit 24.1 +0.5 101.9% 11.6 +0.4 103.0% 12.5 +0.1 100.7% BP Margin 7.8% (0.5)pt 7.8% (0.4)pt 7.9% (0.4)pt
Page 29
(2) Full-year Forecast for Fiscal 2026 Business Profit Overseas: Major Change Factors 29 Unit: Billions of yenOverseas +0.4 billion (YoY) March 2025 March 2026 Impact of difference in revenue Impact of raw materials, etc. Impact of fixed manufacturing costs, etc. Impact of SG&A expenses Translation differences 70.2 7.3 (0.4) 70.6 (5.7) 0.5 (1.3) Key points ⚫ The impact of difference in revenue is due to the increase in sales of soy sauce and wholesale. ⚫ The impact of SG&A expenses is driven by the increase in marketing expenses and labor costs. ⚫ Exchange rates for H2 have been set at 150 yen/USD and 170 yen/EUR.
Page 30
(2) Full-year Forecast for Fiscal 2026 Business in Japan 30 Key points ⚫ The fiscal year ending March 2026 is expected to recover from the challenges faced in H2 of the last year. ⚫ Foods—Manufacturing and Sales is expected to increase revenue in soy sauce, food products, and beverages. ⚫ Soy milk is expected to continue expanding sales growth in H2. ⚫ Biochemical business is expected to continue its recovery trend in H2. Full year YoY H1 YoY H2 YoY (Billions of yen) Forecast Change % Actual Change % Forecast Change % Foods—Manufactuaring and Sales 159.0 +4.7 103.1% 80.8 +2.4 103.1% 78.2 +2.3 103.1% Others 22.0 +0.4 101.9% 10.9 (0.1) 99.1% 11.0 +0.5 104.7% Eliminations (12.4) (0.1) - (6.2) +0.0 - (6.2) (0.2) - Revenue 168.6 +5.0 103.1% 85.6 +2.4 102.8% 83.0 +2.7 103.3% Foods—Manufactuaring and Sales 9.7 +1.2 113.5% 5.8 +0.6 110.7% 3.9 +0.6 118.1% Others 1.5 +0.3 127.8% 0.9 +0.1 112.6% 0.6 +0.2 156.1% Business Proft 11.2 +1.5 115.1% 6.7 +0.7 110.8% 4.5 +0.8 122.0% BP Margin 6.6% +0.7pt 7.8% +0.5pt 5.4% +0.8pt
Page 31
March 2025 March 2026 Impact of difference in revenue and structural strengthening Impact of raw materials, etc. Impact of advertising expenses Impact of depreciation and amortization Impact of other fixed expenses, etc. 9.7 3.4 (0.9) 11.2 (0.2) (0.7) (0.2) (2) Full-year Forecast for Fiscal 2026 Business Profit in Japan: Major Change Factors 31 Unit: Billions of yenJapan +1.5 billion (YoY) Key points ⚫ The impact of difference in revenue is driven by increased sales of soy milk, soy sauce, and food products. ⚫ The impact of advertising expenses is driven by increased marketing expenses for soy sauce and soy milk. ⚫ The impact of other fixed expenses, etc. is driven by increases in expenses, including labor costs and repair costs.
Page 32
(2) Full-year Forecast for Fiscal 2026 Capital Expenditures and Depreciation and Amortization Key points on capital investment for the fiscal year ending March 2026 32 Major domestic capital investments • Soy sauce, food products: production equipment • Soy milk: production facilities and other equipment • Lease renewal for the Tokyo head office Major overseas capital investments • Soy sauce in North America: construction of a new plant • Soy sauce in Europe and Asia & Oceania: production capacity expansion • Wholesale in North America: warehouse expansion Revision of the initial forecast • Part of the timing for capital investments in domestic and overseas production facilities has been shifted • Part of the timing for warehouse investments in overseas wholesale has been shifted FY2024 FY2025 FY2026 (Billions of yen) Actual Actual forecast Japan 20.0 11.0 16.2 Overseas 23.5 35.8 53.8 Consol. Total 43.5 46.8 70.0 Japan 11.3 12.6 12.9 Overseas 12.7 14.3 14.4 Consol. Total 24.0 26.9 27.3 * Capital expenditures includes investment properties, right-of-use assets and intangible assets. Capital Expenditures* Depreciation and Amortization
Page 33
33 Appendix 1: FY2026–2028 Medium-Term Management Plan
Page 34
Positioning of the FY2026–2028 Medium-Term Management Plan 34 FY2023–2025 Medium-Term Management Plan FY2026–2028 Medium-Term Management Plan Global Vision 2030 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Maintained growth and increased profitability while responding to changes in the external environment during COVID-19 Investing for the future while maintaining growth and profitability Proactively investing business resources in capital investment, research, human resources, DX, new businesses, and solving social issues Accelerate growth toward Global Vision 2030 and beyond FY2029 and beyond Profit (FYE Mar)
Page 35
Medium-Term Management Plan: Targets and Key Objectives 35 Continue growth and maintain/improve profitability Utilize assets for the future Solve social issues through business activities Sales Growth CAGR 5% or more Business Profit Margin 10% or more ROE 12% or more FY3/2028 FY3/2028 * Excl. Forex fluctuation Targets Key Objectives
Page 36
FY2026–2028 Medium-Term Management Plan Key Objectives 36 Continue growth and maintain/increase profitability Utilize assets for the future Solve social issues through business activities
Page 37
Overseas: Soy Sauce Business Targets 37 Sales Growth CAGR (excl. FX fluctuation) 6% North America Europe Asia & Oceania New markets ⚫ Expand demand and establish sufficient production and supply systems to drive growth in existing markets ⚫ Develop new markets and take on challenges in new areas 5% 10% 5% • Continue stable growth by improving supply structure and optimizing logistics • Implement marketing strategies to expand the breadth and depth of soy sauce • Maintain double-digit growth by creating further demand for soy sauce and expanding the market share • Establish market share by country and expand annual soy sauce purchase volume per capita • Sustain double-digit growth in ASEAN markets • Expand products that capture local food preferences and customs • Create demand for soy sauce through food experiences and brand recognition South America : Boost brand recognition India : Establish product supply system and sales network Africa : Establish foundation to enter growth stage in 2030s
Page 38
Overseas: Soy Sauce Business Targets 38 Asia & Oceania Europe North America Chicago Walworth Jefferson 地図データ ©2024 Google 日本 Sales by region Third U.S. plant 2nd plant 1st plant ⚫ Establish a stable supply system to meet demand in the North American soy sauce market ⚫ Aim for a sustainable, next-generation plant with production efficiency, scalability, and flexibility * Revenues exclude the effect of foreign exchange fluctuation and are indexed with FY3/2025 as 100. Location : Jefferson County, Wisconsin Construction start : April 2024 Shipment start : Fall 2026 (planned) Investment : Approx. $560 million over a 10-year period (planned) San Francisco Folsom Chicago Walworth 100 104 0 20 40 60 80 100 120 140 FY3/25 Actual FY3/26 Forcast FY3/28 Target 102 110 105 CAGR 5% CAGR 10% CAGR 5% 100 100 100 CAGR 6%
Page 39
⚫ Strengthen logistics infrastructure • Develop and expand existing facilities • Proactively invest in the development of new facilities, with a view to M&A ⚫ Strengthen personnel • Reinforce personnel to support business expansion • Develop human resources capable of managing facilities ⚫ Boost procurement and development capabilities • Optimize procurement functions • Improve JFC brand product development capabilities ⚫ Optimize the sales ratio between home-use and foodservice-use • Accelerate expansion into mainstream market in the U.S. and Australia • Expand access to the European retail market Overseas: Foods—Wholesale Business Targets 39 5% ⚫ Strengthen foundation as a wholesale business, develop new facilities, and expand business ⚫ Further consolidate position as a global No. 1 Asian food wholesaler in terms of market share Sales Growth CAGR (excl. FX fluctuation)
Page 40
Business in Japan: Targets 40 Sales Growth CAGR 4% ⚫ Increase profitability (shift to high value-added businesses and increase productivity) ⚫ Return to a growth trajectory (thoroughly implement basics such as value appeal and sales promotion activities)Business Profit Margin FY2028 7% Soy sauce/ Food products Soy milk Biochemical • Propose new value (solve health concerns) • Strengthen production and logistics systems • Develop business category-specific strategies and deepen market presence • Provide more value (pursue delicious experiences) • Grow steadily by expanding sales of strategic products • Develop markets (overseas, new areas)
Page 41
FY2026–2028 Medium-Term Management Plan Key Objectives 41 Continue growth and maintain/increase profitability Utilize assets for the future Solve social issues through business activities
Page 42
Utilize assets for the future 42 Utilize business resources for sustainable growth Human resources Capital R&D and Technology Information Growth markets New businesses Profitability improvement Business resources Demand creation
Page 43
Capital Policy and Cash Allocation 43 FY2026–2028 Operating CF ¥280.0bn* Cash and deposits ¥100.0bn (As of March 2025） Cash and deposits: Reduce cash and deposits through the above initiatives to enhance asset efficiency Capital investment Actively pursuing capital investment while assessing investment return • Investments including increased production to further drive growth • Investments to strengthen existing businesses • Replacement investments for maintenance, preservation, and environmental measures Investment for growth and profitability improvement Proactively evaluate and invest in new businesses, including M&A • Investment in DX, human resources, R&D • Addressing social issues • New businesses, M&A Shareholder returns Enhance and continue share repurchases • Consolidated dividend payout ratio target: 35% or more; continue to pay progressive dividends • Continue acquisition of treasury stock *exchange rates: 145 yen/USD, 160 yen/EUR Debt Dividend: ¥70.0bn ¥170.0bn* Overseas: ¥120.0bn + Japan: ¥50.0bn Soy sauce ¥80.0bn Wholesale ¥40.0bn Investment for growth and profitability improvement Repeated from p.8
Page 44
Investment for Growth and Profitability Improvement: Building New Pillars 44 Creating businesses unique to Kikkoman in the area of Food and Health ◼ Brand, history, business model, overseas network, etc. ◼ Value chain ◼ R&D and technology Kikkoman’s Strengths Problem solving × Growth opportunities Consumer Challenges Preventing and eliminating obesity Promoting mental health Improving nutrition and ending hunger Preventing frailty Preventing dementia Evolving taste preferences Advances in time-saving Embracing diversity Acceptance of individual values Pursuit of physical/mental beauty Social / Environmental ChallengesPassing down and integrating food cultures Improving operations in the food industry Reducing environmental impact
Page 45
8.2yen 8.4yen 9.0yen 12.2yen 15.6yen 20.8yen 25.0yen30% 30% 28% 38% 34% 52% 63% -80% -60% -40% -20% 0% 20% 40% 60% 80% 0.0yen 5.0yen 10.0yen 15.0yen 20.0yen 25.0yen 30.0yen 35.0yen 40.0yen FY19 FY20 FY21 FY22 FY23 FY24 FY25 (planned) Shareholder Returns 45 Total payout ratio Annual dividend per share Note: The Company conducted a 5-for-1 stock split of shares of common stock on April 1, 2024; the annual dividend per share for FY2019 to FY2024 is calculated as if such stock split had been conducted. (FYE 3/2025)
Page 46
(Reference) FY2028 Consolidated Revenue & Business Profit Outlook 46 consolidated FY2025 Actual FY2028 Outlook 3-yr CAGR excl. FX fluctuation Revenue 709.0 801.3 5% Business profit 77.3 81.4 3% Business profit margin 10.9% 10.2% – Overseas business Revenue 552.1 624.9 5% Business profit 70.2 73.3 3% Business profit margin 12.7% 11.7% – Business in Japan Revenue 163.6 183.1 4% Business profit 9.7 13.0 10% Business profit margin 5.9% 7.1% – Exchange rete USD/yen 152.5 yen 145.0 yen EUR/yen 163.6 yen 160.0 yen Billion yen
Page 47
Consolidated total Business in Japan Overseas Foods—Wholesale business Overseas soy sauce business Consolidated and Segment-Specific Targets 47 revenue Business profit margin Asia & Oceania North America Europe * Revenues exclude the effect of foreign exchange fluctuation and are indexed with FY2025 as 100. revenue Business profit margin revenue revenue (FYE 3/2028) (FYE 3/2028) (FYE 3/2028) (FYE 3/2028) 100 105 10.9% 10.7% 10% or more 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 0 50 100 FY3/25 Actual FY3/26 Forcast FY3/28 Target CAGR 5% or more 100 104 0 20 40 60 80 100 120 140 FY3/25 Actual FY3/26 Forcast FY3/28 Target 102 110 105 CAGR 5% CAGR 10% CAGR 5% 100 100 100 CAGR 6% 100 106 0 20 40 60 80 100 120 FY25 Actual FY26 Forcast FY28 Target CAGR 5% 100 103 5.9% 6.6% 7% 5.0%0 50 100 FY3/25 Actual FY3/26 Forcast FY3/28 Target CAGR 4%
Page 48
FY2026–2028 Medium-Term Management Plan Key Objectives 48 Continue growth and maintain/increase profitability Utilize assets for the future Solve social issues through business activities
Page 49
Outline of Global Vision 2030 49 Challenges toward 2030 Utilizing management resources Human resources / Information / Cash flow Offering No.1 Values Fermenting and brewing technologies Global No.1 strategy Creating new businessesArea No.1 strategy 1 2 1 2 3 Goals Make Kikkoman Soy Sauce a truly global seasoning Create new delicious experiences around the world, and contribute to richer, healthier lifestyles 1 2 3 Become a company whose presence in global society is ever more meaningful, through activities unique to Kikkoman Striving with Passion to Create New Values
Page 50
Management principles Global Vision 2030 Adress social issues Global Environment Food and Health People and Society Overall Picture of Initiatives to Solve Social Issues 50 Social issues OpportunitiesSolutions
Page 51
Medium-Term Management Plan (FY2026‒2028) Initiatives to Solve Social Issues 51 Three areas of material issues Basic policy Themes Global Environment Strengthen efforts in each theme to achieve the Long-Term Environmental Vision ⚫ Climate change ⚫ Food environments ⚫ Natural resources Food and health Help customers around the world achieve a well-balanced diet ⚫ Making health simple and delicious ⚫ Responding to the challenges of individuals ⚫ Bringing the joy of food to the next generation ⚫ Co-creation and innovation People and Society Foster a corporate culture which values people, while contributing to the sustainable development of society ⚫ Respect for human rights ⚫ Collaborating with stakeholders ⚫ Strengthening of the management system
Page 52
Themes Actions FY2028 Targets 2030 (FY3031) Long-Term Environmental Vision Climate change Reducing CO2 emissions (compared to FY2019) 42% or more 50% or more Food environments Reducing water consumption (per unit of production) (compared to FY2012) 28% or more 30% or more Compliance with wastewater standards that are stricter than laws and regulations BOD of 8mg/L or less BOD of 8mg/L or less Sustainable raw material procurement Soybeans: 100% certified or equivalent Container and packaging paper: 85% or more certified Soybeans: 100% certified or equivalent Container and packaging paper: 100% certified Natural resources Promoting recycling activities Recycling rate of 99% or more Recycling rate of 100% Reducing food loss (compared to FY2019) 38% or more 50% or more Utilizing sustainable materials PET containers: 30% or more made of sustainable materials PET containers: 50% or more made of sustainable materials Global Environment 52 Basic policy: Strengthen efforts in each theme to achieve the Long-Term Environmental Vision
Page 53
Food and Health 53 Basic policy: Help customers around the world achieve a well-balanced diet Themes Actions FY2028 Targets Making health simple and delicious Expanding health products and services Expanding products that help resolve nutritional deficiencies Proposing simple, nutritionally balanced recipes and diets Proposing diets that emphasize proper salt intake, expansion of vegetable-based recipes, and mental and physical health Promoting proper salt intake Percentage of sales of less salt-type soy sauce in Japan: 30% Responding to the challenges of individuals Supporting health based on scientific evidence Proving useful information on health and nutrition concerns Developing services that address individual nutrition challenges Developing and implementing Kikkoman NPS* * Nutritional Profiling System Responding to diverse dietary needs Expanding product offerings such as allergen-free and organic soy sauce Bringing the joy of food to the next generation Enhancing food education Offering more enjoyable food and culinary experiences Promoting international exchange of food culture Providing opportunities to experience new food culture and healthy eating habits Connecting with people through food Enhancing activities to deliver more delicious memories Co-creation and innovation Promoting health management Supporting employees to improve their health and take on new challenges Helping create food environments Co-creation with society through industry-government- academia collaboration Strengthening communication Company-wide promotion of health value based on business
Page 54
People and Society 54 Basic policy: Foster a corporate culture which values people, while contributing to the sustainable development of society Themes Actions FY2028 Targets Respect for human rights Implementing human rights due diligence • Participation in training to deepen understanding of business policies regarding respect for human rights: 100%*1 • Completion of assessments of key suppliers and contractors at domestic and overseas manufacturing sites: 100% Collaborating with stakeholders Promoting diversity, equity and inclusion • “DE&I Awareness Score” in employee engagement survey: 65%*2 • Proportion of women in management positions: 20%*2 • Employment rate of persons with disabilities: 2.7%*3 • Men’s childcare leave take-up rate: 100%*4 Creating a work environment where employees can fully utilize their abilities • “Health Management” score in employee engagement survey: 65%*2 • Maintaining annual leave take-up rate: 80% or more*4 • “Provision of Growth Opportunities” score in employee engagement survey: 70%*2 • Improving “Engagement” score in employee engagement survey*2 Contributing to the development of local communities • Promoting activities to support sustainable development of society Promoting stakeholder engagement • Implementing stakeholder engagement programs *1 Designated Group companies in Japan and overseas *2 Group companies in Japan (incl. employees seconded overseas) *3 Legally obligated Group companies *4 Group companies in Japan
Page 55
People and Society 55 Themes Actions FY2028 Targets Strengthening of the management system Strengthening corporate governance • Strengthening the corporate governance system Strengthening compliance • Conducting compliance training programs Strengthening risk management • Putting in place a global BCP program • Enforcing data security Basic policy: Foster a corporate culture which values people, while contributing to the sustainable development of society
Page 56
56 Appendix 2
Page 57
ROE and ROIC 57 10.7% 11.7% 11.4% 12.5% 12.3% 9.5% 10.4% 10.2% 11.2% 11.1% 5.9% 6.5% 6.3% 6.8% 7.1% 5.0% 7.0% 9.0% 11.0% 13.0% FY21 FY22 FY23 FY24 FY25 ROE ROIC WACC (FYE 3/2025)
Page 58
Business Development Stage by Geographical Area for Global Rollout of Kikkoman Soy Sauce 58 Maturing stage Diversification stage SouthAmerica Japan NorthAmerica IndiaAfrica Europe ASEAN China Oceania Introduction stage Growth stage From export to local production Double-digit growth Strengthening production and distribution systems Stable growth Maintaining high profitability while developing systems Strengthening profitability Adding further value while enhancing efficiency
Page 59
Kikkoman Soy Sauce Sales Volume Overseas 59 * Indexed to sales volume in FY1974 as 100. FY1974 FY1976 FY1978 FY1980 FY1982 FY1984 FY1986 FY1988 FY1990 FY1992 FY1994 FY1996 FY1998 FY2000 FY2003 FY2005 FY2007 FY2009 FY2011 FY2013 FY2015 FY2017 FY2019 FY2021 FY2023 FY2025 100 3,136 FY1974–2025 CAGR: 7.1% *
Page 60
100 191 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 JGAAP IFRS Sales (in Value) of Soy Sauce Business 60 FY2016 sales=100 FY2016–2025 CAGR 7.5% FY2025 North America 65% Europe 20% Other and eliminations 1% Asia & Oceania 14% Note: Figures in the table above represent actual change on a local currency basis, excluding the effect of translation difference, indexed with consolidated sales for FY2016 as 100. The figures for FY2016–2020 are net sales under JGAAP and those for FY2021–2025 are revenue under IFRS. (FYE 3/2025)
Page 61
100 100 100 177 238 194 CAGR: 6.6% North America Asia & OceaniaEurope *2 Sales (in Value) of Soy Sauce Business Overseas by Region 61 CAGR: 10.1% CAGR: 7.6% FY16 FY25 FY16 FY25 FY16 FY25 JGAAP IFRS JGAAP IFRS JGAAP IFRS FY2016 sales=100*1 * 1. Figures in the table above represent actual change on a local currency basis, excluding the effect of translation differen ce, indexed with consolidated sales for FY2016 as 100. The figures for FY2016–2020 are net sales under JGAAP and those for FY2021–2025 are revenue under IFRS. * 2. For Sales in Asia & Oceania, sales at President Kikkoman Zhenji Foods Co., LTD. have been included since FY2017. (FYE 3/2025)
Page 62
Overseas Kikkoman Soy Sauce Production Bases 62 The Netherlands Tainan, Taiwan Singapore Brazil Note: As of March 2025 Walworth, Wisconsin Kunshan, Jiangsu Folsom, California Shijiazhuang, Hebei Jefferson, Wisconsin (Under construction)
Page 63
100 207 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 JGAAP IFRS Sales (in Value) of Foods—Wholesale Business 63 FY2016 sales=100* FY2016–2025 CAGR 8.4% * Figures in the table above represent actual change on a local currency basis, excluding the effect of translation differenc e, indexed with consolidated sales for FY2016 as 100. The figures for FY2016–2020 are net sales under JGAAP and those for FY2021–2025 are revenue under IFRS. (FYE 3/2025)
Page 64
64 1. The information contained in these materials is based on judgments made by the Company as of the date hereof and the Company makes no warranties or guarantees regarding achievement of the projections or measures described herein. 2. Unless otherwise noted, the fiscal year in the materials refers to the fiscal year ending March 31. e.g.) FY2025 = April 2024 to March 2025 3. Business profit is profit after deducting the cost of sales and selling, general and administrative expenses from revenue.