Management Strategies

ITO EN Group Mission

Health Creation Company

Create healthy and fulfilling lifestyles for customers and a sustainable society

The ITO EN Group is committed the “Health Creation Company” which “creates healthy and fulfilling lifestyles for customers and a sustainable society” as its mission in society. Serving as background is the Group’s history of having created a culture of consuming sugar-free tea beverages every day, through efforts to keep with the times and bring to production of green tea that has taken root as a health beverage in Japan since ancient times.

Long-Term Vision

Global Tea Company

Connect to the cultures of tea around the world and broadly
share taste and value as a tea specialist

Global × Value Creation × Unique

Medium- to Long-Term Management Plan (FY2022 – FY2026)

Overview

To deal with these changes in the external environment, the Group has formulated a medium- to long-term management plan with the aim to constantly meet expectations of all customers based on the Group’s philosophy of “Always Putting the Customer First.” Under the medium- to long-term management plan, we will focus on five key strategies for the next five years for the realization of healthy and prosperous lives for our customers and a sustainable society. Moreover, based on our approach to growth, including emphasis on profitability, sustained growth for the improvement of profit and market share, and increase in return on shareholders’ equity, the Group has established quantitative goals until the FY2026.

In implementing the five key strategies under the medium- to long-term management plan, the Group will work to create new values, realize healthy and prosperous lives for our customers and a sustainable society, and aim to become a unique, lasting company.

Five key strategies

Solidify the existing businesses in Japan

Establish the status of an unrivaled tea company in Japan

Increase the brand value centering on health appeal

Improve contact with customers

Develop Oi Ocha into a global standard brand: Integrate Oi Ocha into the dietary cultures of different countries and regions and enable it to permeate daily life

Create new businesses

Offer new value for food and life

Leverage tea's functionality and the techniques and relationships cultivated in the tea business

Strengthen the management base

Increase synergy within the ITO EN Group

Optimize supply chain

Accelerate human resource development, research and development and DX

Promote sustainability management

Contribute to consumers, local communities, agriculture and the resolution of global environmental issues through business activities appropriate to ITO EN

Achieve continuous growth towards being a 100-year-old company

Quantitative targets

Average five-year growth rate in consolidated net sales of 3% or more

FY2021	FY2024	FY2026
Operating income ratio 4.7% ROE 8.2% Total return ratio 44.5% Ratio of overseas sales to total sales 10%	Operating income ratio 6% ROE 10% or more Total return ratio Maintain 40% Ratio of overseas sales to total sales 11% or more	Operating income ratio 7% ROE 10% or more Total return ratio Maintain 40% Ratio of overseas sales to total sales 12% or more

FY2021

FY2024

FY2026

Operating income ratio: 4.7%

ROE: 8.2%

Total return ratio: 44.5%

Ratio of overseas sales to total sales: 10%

Operating income ratio: 6%

ROE: 10% or more

Total return ratio: Maintain 40%

Ratio of overseas sales to total sales: 11% or more

Operating income ratio: 7%

ROE: 10% or more

Total return ratio: Maintain 40%

Ratio of overseas sales to total sales: 12% or more

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Cumulative total five-year cash flows

Cash inflow: Operating cash flow
150 billion yen or more

Cash outflow: Business Investment
70.0 billion yen

: Repayment of interest-bearing liabilities
40.0 billion yen

: Shareholder return
35.0 billion yen or more