Medium and Long-Term
Management Plan

ITO EN Group Mission

As the Health Creation CompanyCreate 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 presence × Value Creation × Unique

Global presence

Enable tea, which is enjoyed all over the world, to evolve to support the mental and physical health of people around the world.
Value Creation

Use the knowledge cultivated in tea to create value that aids health and a sustainable society.
Unique

Be a unique company that integrates tradition and cutting-edge technologies in domains ranging from agriculture to resource circulation.

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.

Framework of Medium-to-Long-Term Management Plan

Five key strategies

Solidification of domestic business
- Establish the status of an unrivaled tea company in Japan
- Brand value enhancement mainly through appeal to health-conscious consumers, and stronger ties with customers
Globalization of Oi Ocha
- Permeation of Oi Ocha in everyday life through its integration into eating cultures in the United States, China and other countries
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
- Accelerate human resources 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

Five-month average growth in consolidated net sales of 3% or more

FY2021	FY2024	FY2026
Operating Income 4.7% ROE 8.2% Total payout ratio 44.5% Overseas sales ratio 10%	Operating Income 6% ROE 10% or more Total payout ratio Maintain 40% Overseas sales ratio 11% or more	Operating Income 7% ROE 10% or more Total payout ratio Maintain 40% Overseas sales ratio 12% or more

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Cumulative total five-year cash flows

Cash inflow

Operating cash flow: ¥150 billion or more

Cash outflow

Business Investment: ¥70.0 billion

Repayment of interest-bearing debt: ¥40.0 billion

Shareholder return: ¥35.0 billion or more

: ITO EN INTEGRATED REPORT
ITO EN INTEGRATED REPORT 2021
[12.9B]PDF

ITO EN’s Business Model for Responding to ESG

Management Details

Medium and Long-Term Management Plan