Medium-term Management Plan

Group Medium-term Management Plan 2019​

Business Portfolio Transformation

Butter, margarine, cheese, condensed milk, skim milk, etc.

Respond to changes in the environment and strengthen the earnings bases

● Market expansion by strengthening our main product lineup
● Market expansion through borderless development of cheese

[Group Companies]
Megmilk Snow Brand Co., Ltd. / Kohnan Oils and Fats MFG Co., Ltd. / Yatsugatake Milk Co., Ltd. / SI System Corporation / Chesco Ltd. / Snow Brand Australia Pty. Ltd. / PT. Megmilk Snow Brand Indonesia / Nichiraku Machinery Co., Ltd. / Cresco Corporation / SBS Flec Co., Ltd. / Udder Delights Australia Pty. Ltd., and others

Butter, margarine, cheese, condensed milk, skim milk, etc.

Secure the earnings bases and structurally transform into a business that will drive growth

● Strategic expansion of functional yogurt
● Product mix optimization

[Group Companies]
Megmilk Snow Brand Co., Ltd. / Michinoku Milk Co., Ltd. / Yatsugatake Milk Co., Ltd. / Ibaraku Co., Ltd. / SI System Corporation / Mitsuwa Distribution Industry Co., Ltd. / Chokuhan Haisou Co., Ltd. / Greenservice Co., Ltd. / Cresco Corporation / SBS Flec Co., Ltd. / Luna Bussan / Nichiraku Machinery Co., Ltd., and others

Powdered milk include infant formula, functional foods, etc.​

Create new growth opportunities and develop into a highly profitable business

● Build a growth model for functional foods business
● Strengthen the competitiveness of the powdered milk business by promoting value

[Group Companies]
Megmilk Snow Brand Co., Ltd. / Bean Stalk Snow Co., Ltd. / Snow Brand Taiwan Co., Ltd. / Snow Brand Hong Kong Co., Ltd. / Snow Brand Trading (Shanghai) Co., Ltd. / Snow Brand Australia Pty. Ltd. / EN Otsuka Pharmaceutical Co., Ltd. / Amino Up Chemical Co., Ltd. / Belle Neige Direct Co., Ltd., and others

Feedstuffs, seeds (forage grass and crops, vegetables), landscape gardening, etc.​

Increase efficiency in the feedstuffs business and grow the seed products business into a core business

● Strategic expansion of the seed products business
● Increase profitability in the feedstuffs business

[Group Companies]
Snow Brand Seed Co., Ltd. / Snow Brand Seed USA, Inc. / Doto Feed Corporation / Royal Farm, Ltd. / RF Penkel Farm Co., Ltd. / RF Aomori Farm Co., Ltd., and others

Medium-term Management Plan benchmarks​

Megmilk Snow Brand Group has set the following benchmarks for our Medium-term Management Plan.

Performance indicatorsFY2019 goal figures
Consolidated net sales630 billion yen
Consolidated EBITDA40 billion yen
Consolidated operating profit22 billion yen
ItemsTarget
Total investment (3 year total)77 billion yen
Consolidated ROE8% or higher
Consolidated equity ratio40% or higher
Consolidated payout ratio20% or higher