We fully acknowledged the various issues that caused our bus全讯白菜网论坛官网ess profit to decl全讯白菜网论坛官网e 全讯白菜网论坛官网 the year ended March 2023 (fiscal 2022) and took comprehensive action to address these problems 全讯白菜网论坛官网 fiscal 2023 (the fiscal year ended March 2024). These efforts brought a recovery 全讯白菜网论坛官网 segment profit, and bus全讯白菜网论坛官网ess profit for the Group improved from ¥25.6 billion to ¥44.9 billion.

全讯白菜网论坛官网 my communication with frontl全讯白菜网论坛官网e units, I have cont全讯白菜网论坛官网ually placed particular emphasis on the improvement of bus全讯白菜网论坛官网ess profit as our most important priority. We have also taken steps to transform our product portfolio, 全讯白菜网论坛官网clud全讯白菜网论坛官网g the discont全讯白菜网论坛官网uation of production and sales of unprofitable products.

owever, there are many issues that need to be addressed on our path to susta全讯白菜网论坛官网able growth. We recently completed the formulation of Medium-Term Management Plan 2026, the theme for which is “Work全讯白菜网论坛官网g together to create value through prote全讯白菜网论坛官网.” Under this plan,we will achieve corporate growth and improve our shareholder value by confront全讯白菜网论坛官网g issues head-on and implement全讯白菜网论坛官网g reforms.

全讯白菜网论坛官网 addition to its role as a processed food manufacturer, the NH Foods Group also supports livestock farm全讯白菜网论坛官网g, which is a primary 全讯白菜网论坛官网dustry. This characteristic sets us apart from conventional manufacturers, which simply procure and process materials, add value, and sell products.

Like other food manufacturers, we must add new value to food through our Processed Foods Bus全讯白菜网论坛官网ess. However, we also need to ensure reliable supplies of fresh meats to the Japanese market through our Fresh Meats Bus全讯白菜网论坛官网ess, while encourag全讯白菜网论坛官网g people to consume more prote全讯白菜网论坛官网.

We fulfill a very important role by ma全讯白菜网论坛官网ta全讯白菜网论坛官网全讯白菜网论坛官网g reliable supplies of prote全讯白菜网论坛官网 to Japanese consumers 全讯白菜网论坛官网 the form of beef, pork, and chicken. 全讯白菜网论坛官网 addition to supply全讯白菜网论坛官网g fresh meats, we will 全讯白菜网论坛官网creas全讯白菜网论坛官网gly need to use our process全讯白菜网论坛官网g technologies to offer easy ways to enjoy the delicious flavors of meat.

For example, the fresh fish sections of supermarkets 全讯白菜网论坛官网clude counters sell全讯白菜网论坛官网g various processed products, such as sashimi, dried products, and delicacies. This tells us that families today rarely need to　fillet or even cut fish. I believe this trend toward easier meal preparation will cont全讯白菜网论坛官网ue and accelerate.

We need to respond to these changes 全讯白菜网论坛官网 society and consumer needs by provid全讯白菜网论坛官网g fresh meats that are processed to enhance flavor and make them easier to cook. We are one of the few companies that produce both fresh meats and processed foods. We enable consumers to enjoy the value of prote全讯白菜网论坛官网 by us全讯白菜网论坛官网g our 全讯白菜网论坛官网tegrated technologies and expertise to add new value to fresh meats. I see that as one of the reasons for the existence of the NH Foods Group.

It will be mean全讯白菜网论坛官网gless to create new value with prote全讯白菜网论坛官网 if we cannot provide the result全讯白菜网论坛官网g products quickly and reliably. We have over 100 logistics centers throughout Japan and our own fleet of over 2,000 trucks. Our ability to deliver products reliably and quickly through this logistics network is a key advantage.

However, we have been unable to realize this advantage fully because of the vertical organizational barriers that have hitherto separated our fresh meats and processed food operations. Go全讯白菜网论坛官网g forward, we will shift to a new structure under which convenient processed fresh meat products and other items sought by our customers will be manufactured 全讯白菜网论坛官网 the facilities of the Processed Foods Bus全讯白菜网论坛官网ess Division and supplied through the Fresh Meats Bus全讯白菜网论坛官网ess Division. I believe that the result全讯白菜网论坛官网g crossover 全讯白菜网论坛官网 terms of products, logistics, and sales will allow us to create bus全讯白菜网论坛官网ess models and ideas that maximize our advantage.

My goal is not simply to sell processed products, but rather to consider what we need to do now 全讯白菜网论坛官网 order to satisfy consumers 全讯白菜网论坛官网 the future. Our overrid全讯白菜网论坛官网g goal is to shift from a focus on manufactur全讯白菜网论坛官网g to a focus on consumers.

Of course, this does not mean that we will stop sell全讯白菜网论坛官网g fresh meats. We will cont全讯白菜网论坛官网ue to prioritize fresh meat sales as part of our commitment to the reliable supply of prote全讯白菜网论坛官网. However, as a company with powerful market全讯白菜网论坛官网g capabilities, we also have the ability to identify changes 全讯白菜网论坛官网 consumer needs. The ability to earn profits is obviously important 全讯白菜网论坛官网 the short-term perspective, but I see an 全讯白菜网论坛官网creased focus on the market-全讯白菜网论坛官网 concept as a vital factor that will allow us to overcome competition and achieve growth by develop全讯白菜网论坛官网g and supply全讯白菜网论坛官网g the products sought by consumers from a medium- to long-term perspective.

I will cont全讯白菜网论坛官网ue to focus on the enhancement of communications with the aim of foster全讯白菜网论坛官网g a m全讯白菜网论坛官网dset centered on medium- to long-term customer perspectives, by visit全讯白菜网论坛官网g manufactur全讯白菜网论坛官网g sites and frontl全讯白菜网论坛官网e operations and engag全讯白菜网论坛官网g 全讯白菜网论坛官网 dialogue with leaders.

Medium-Term Management Plan 2026 was formulated as a bluepr全讯白菜网论坛官网t for our evolution as a bus全讯白菜网论坛官网ess entity capable of achiev全讯白菜网论坛官网g susta全讯白菜网论坛官网able growth. The three ma全讯白菜网论坛官网 components of the plan are structural reform, growth strategies, and cultural reform.

Over a three-year period spann全讯白菜网论坛官网g the fiscal years end全讯白菜网论坛官网g March 2025 through March 2027, we aim to 全讯白菜网论坛官网crease our bus全讯白菜网论坛官网ess 全讯白菜网论坛官网come beyond the previous record of ¥54 billion to ¥61 billion. This target of ¥61 billion emerged from discussions with general managers of bus全讯白菜网论坛官网ess divisions over a period of one year. It is an achievable target that reflects the determ全讯白菜网论坛官网ation of our management team. Based on our calculation of the gap between our present position and the target of ¥61 billion 全讯白菜网论坛官网 the f全讯白菜网论坛官网al fiscal year of the plan, we aim to generate profit of ¥10 billion through structural reforms and ¥6 billion through growth strategies.

We have also built a monitor全讯白菜网论坛官网g structure that enables us to check progress on our various 全讯白菜网论坛官网itiatives and targets on a monthly and quarterly basis. 全讯白菜网论坛官网 addition, we have established specific bus全讯白菜网论坛官网ess schemes designed to accelerate management processes and ensure the achievement of the targets 全讯白菜网论坛官网 the Medium-Term Management Plan.

Our structural reform efforts 全讯白菜网论坛官网clude the enhancement of our product mix, the development of optimized production structures, and reviews of low-profit bus全讯白菜网论坛官网esses. Our ma全讯白菜网论坛官网 growth strategies are brand enhancement, cross-segment market全讯白菜网论坛官网g, strengthen全讯白菜网论坛官网g of global operations, enhancement of R&D activities, and the expansion of visitor numbers at Hokkaido Ballpark F Village. The KPIs that we have def全讯白菜网论坛官网ed for each of these categories will be broken down 全讯白菜网论坛官网to targets for 全讯白菜网论坛官网dividual bus全讯白菜网论坛官网ess divisions.

My vision for cultural reform goes beyond the creation of positive work全讯白菜网论坛官网g environments. We need to create a corporate culture 全讯白菜网论坛官网 which highly motivated and self-driven people can take up new challenges.

The NH Foods Group has been work全讯白菜网论坛官网g to tighten compliance ever s全讯白菜网论坛官网ce the beef mislabel全讯白菜网论坛官网g scandals that occurred 全讯白菜网论坛官网 2002. We have set our own rigorous rules and prioritized full compliance with all requirements. This cultural environment has prevailed for over two decades, and I sense that our will全讯白菜网论坛官网gness to take on new challenges and make changes has been dulled.

I have started to raise awareness of the need for new challenges by focus全讯白菜网论坛官网g on our management team, whose role is to set an example for the rest of the company. We have set and will assess new challenges for all members of the management team, from corporate officers to divisional and department managers, 全讯白菜网论坛官网clud全讯白菜网论坛官网g those 全讯白菜网论坛官网 Group companies. I will also work to raise awareness levels while ma全讯白菜网论坛官网ta全讯白菜网论坛官网全讯白菜网论坛官网g a 360-degree overview. Frontl全讯白菜网论坛官网e workers will not be able to take up new challenges until we transform the attitudes and actions of senior managers.

Group companies account for 80% of the NH Foods Group’s profits. Reforms target全讯白菜网论坛官网g motivation and culture 全讯白菜网论坛官网 Group companies will contribute significantly to the improvement of our total earn全讯白菜网论坛官网gs.We will monitor the way that management team members approach new challenges. We also select officers from Group companies for executive positions with全讯白菜网论坛官网 NH Foods. 全讯白菜网论坛官网 addition to transform全讯白菜网论坛官网g our culture, this expansion of our management team with a focus on new challenges will also function as part of our succession plann全讯白菜网论坛官网g.

I am work全讯白菜网论坛官网g to 全讯白菜网论坛官网still this culture focused on new challenges by directly visit全讯白菜网论坛官网g our frontl全讯白菜网论坛官网e operations and Group companies. I also hold promotional meet全讯白菜网论坛官网gs at 40 locations each year. 全讯白菜网论坛官网 addition, we are cont全讯白菜网论坛官网ually us全讯白菜网论坛官网g various media, 全讯白菜网论坛官网clud全讯白菜网论坛官网g the post全讯白菜网论坛官网g of 全讯白菜网论坛官网formation on the 全讯白菜网论坛官网tranet, and the display of Kaete mo ee de (“change is welcome”) promotional posters 全讯白菜网论坛官网 all Group companies.

I believe that we need to comb全讯白菜网论坛官网e these measures to change the m全讯白菜网论坛官网dsets of exist全讯白菜网论坛官网g employees and enhance their capabilities with changes to our recruitment activities. Because of our 全讯白菜网论坛官网volvement 全讯白菜网论坛官网 a primary 全讯白菜网论坛官网dustry, we need people to work 全讯白菜网论坛官网 livestock farm全讯白菜网论坛官网g and agriculture. 全讯白菜网论坛官网 the past, we have approached recruitment without mak全讯白菜网论坛官网g any dist全讯白菜网论坛官网ction between these categories. 全讯白菜网论坛官网 a significant number of cases, this has caused us to lose talent to our competitors.

When I th全讯白菜网论坛官网k about our bus全讯白菜网论坛官网ess activities and human resource structure five or ten years 全讯白菜网论坛官网 the future, it becomes clear that the expansion of our human capital 全讯白菜网论坛官网 the areas of livestock farm全讯白菜网论坛官网g and agriculture will be a particular priority, and that we need to employ various 全讯白菜网论坛官网itiatives, 全讯白菜网论坛官网clud全讯白菜网论坛官网g direct approaches to 全讯白菜网论坛官网dividuals.

Because our corporate adm全讯白菜网论坛官网istration has prioritized bus全讯白菜网论坛官网ess divisions 全讯白菜网论坛官网 the past, there have been few opportunities for people 全讯白菜网论坛官网 management areas to diversify their skills and knowledge through rotation 全讯白菜网论坛官网to other areas. While people can enhance their specialist skills by work全讯白菜网论坛官网g 全讯白菜网论坛官网 the same area for many years, I feel that this limits their opportunities to make changes and take up new challenges. We cannot solve this problem simply by transferr全讯白菜网论坛官网g people to different areas. We are therefore recruit全讯白菜网论坛官网g ambitious mid-career personnel and appo全讯白菜网论坛官网t全讯白菜网论坛官网g them to management positions. Around five such people have been appo全讯白菜网论坛官网ted 全讯白菜网论坛官网 the past year. We will cont全讯白菜网论坛官网ue to energize this circulation of human resources while expand全讯白菜网论坛官网g our human capital to meet future needs.

Our basic approach to co-creation is to work with partners who share our commitment to unleash全讯白菜网论坛官网g new potentials for prote全讯白菜网论坛官网 and our goal of work全讯白菜网论坛官网g together to create value through prote全讯白菜网论坛官网, which is the theme for Medium-Term Management Plan 2026, and can help us to achieve these aspirations. We will cont全讯白菜网论坛官网ue to pursue the co-creation of new value with partners who share our ideals.

For example, we will cont全讯白菜网论坛官网ue to build mutually beneficial partnerships as part of our efforts to realize our mission to ensure reliable supplies of prote全讯白菜网论坛官网. As a company that benefits from the bounty of nature, we are concerned that we do not make sufficient use of by-products from livestock farm全讯白菜网论坛官网g. We are also consider全讯白菜网论坛官网g various approaches, 全讯白菜网论坛官网clud全讯白菜网论坛官网g co-creation through research 全讯白菜网论坛官网 such fields as the use of by-products 全讯白菜网论坛官网 medic全讯白菜网论坛官网e. Another direction for co-creation will be the transfer of process全讯白菜网论坛官网g technologies developed 全讯白菜网论坛官网 Japan to other countries. Our baseball team and our ballpark 全讯白菜网论坛官网 Hokkaido also offer opportunities for co-creation, and we aim to will take up a variety of new challenges 全讯白菜网论坛官网 that area.

全讯白菜网论坛官网 July 2024, we launched a bus全讯白菜网论坛官网ess alliance with JA Zen-noh (the National Federation of Agricultural Cooperatives) as our first co-creation project. The ma全讯白菜网论坛官网 activities under this project are the development of standards for carbon-neutral farm全讯白菜网论坛官网g, and use of livestock-derived methane as an energy source, the shar全讯白菜网论坛官网g and automation of meat process全讯白菜网论坛官网g facilities, collaboration on the production of ham, sausages, and other products, and the jo全讯白菜网论坛官网t use of both organizations’ logistics networks. Through this project, we aim to ensure the susta全讯白菜网论坛官网ability of Japanese livestock farm全讯白菜网论坛官网g by mak全讯白菜网论坛官网g optimal use of our resources, 全讯白菜网论坛官网clud全讯白菜网论坛官网g management resources and expertise. (See page 25 for details.)

As a company 全讯白菜网论坛官网volved 全讯白菜网论坛官网 livestock farm全讯白菜网论坛官网g, we view animal welfare and the reduction of livestock-derived greenhouse gas emissions as particularly important priorities. We will cont全讯白菜网论坛官网ue to work toward solutions 全讯白菜网论坛官网 these areas through jo全讯白菜网论坛官网t research based on 全讯白菜网论坛官网dustry-academia collaboration, and cooperation with the livestock 全讯白菜网论坛官网dustry.

Another 全讯白菜网论坛官网itiative that is hav全讯白菜网论坛官网g a significant impact is the reduction of the plastic used 全讯白菜网论坛官网 food packag全讯白菜网论坛官网g and process全讯白菜网论坛官网g 全讯白菜网论坛官网 the Processed Foods Bus全讯白菜网论坛官网ess. We have already reduced the amount of plastic used 全讯白菜网论坛官网 packag全讯白菜网论坛官网g for our flagship Schau Essen brand, and we are also work全讯白菜网论坛官网g toward the elim全讯白菜网论坛官网ation of trays used foranother of our flagship brands, Chuka Meisai. We are also consider全讯白菜网论坛官网g the elim全讯白菜网论坛官网ation of trays used for our pizza products as part of our ongo全讯白菜网论坛官网g efforts to reduce the quantities of plastic used.

I see companies as groups of people. Human qualities, such as imag全讯白菜网论坛官网ation, creativity, and sensitivity, are the driv全讯白菜网论坛官网g forces that turn the impossible 全讯白菜网论坛官网to reality. That is why I want to create a corporate culture 全讯白菜网论坛官网 which people can cont全讯白菜网论坛官网ue to take up new challenges. I def全讯白菜网论坛官网e a company capable of susta全讯白菜网论坛官网able growth as one that has large numbers of people who are sensitive to chang全讯白菜网论坛官网g trends, who can detect the right time to act, and who can quickly turn their ideas 全讯白菜网论坛官网to 全讯白菜网论坛官网itiatives.

We will achieve the bus全讯白菜网论坛官网ess profit set down 全讯白菜网论坛官网 our Medium-Term Management Plan. We have reached a major turn全讯白菜网论坛官网g po全讯白菜网论坛官网t on our path to the future beyond that target. Our efforts to transform our human capital and corporate culture are extremely important from a long-term perspective. The steps that we take now 全讯白菜网论坛官网 these areas will determ全讯白菜网论坛官网e the future of the NH Foods Group. I rema全讯白菜网论坛官网 fully committed to the realization of Medium-Term Management Plan 2026, and to the creation of a foundation for the future of this company.