With the basic concept “Address strategic issues continuously and push for further growth,” we will carry out five strategies and achieve the 2020 Medium-Term Business Plan.
Address strategic issues continuously and challenge for the further growth
|Net sales (FY3/21)||JPY 1.35 trillion|
|Op. income (margin) (FY3/21)||JPY 125 billion (9.3%)|
|Overseas sale (FY3/21)||JPY 142 billion|
|Overseas profits (FY3/21)||JPY 9.5 billion|
|Debt╱equity ratio||< 0.5|
|Increasing dividends with a target payout ratio of 30%|
ROA=Ordinary income/Average net assets
In plain yogurt, we continue communicating the nutritional value of Meiji Bulgaria Yogurt and introduce new products such as Meiji THE GREEK YOGURT. In functional yogurt, we will constantly provide scientific information for existing products to customers and boost the demand to achieve sustainable growth.
In chocolate, we are extending our product line for Chocolate Kouka and Meiji The Chocolate in order to increase our customer base and encourage repeat purchase.
In nutritional products, we will launch new products with various configurations to stimulate new demand.
In enteral formula, we focus on Meiji Mei Balance and expand sales channel.
*1:CAGR：compound average growth rate
*2:(Source) Meiji Holdings’ estimate as of March 31, 2018
We will increase sales for cheese, frozen dessert products and food products for professional use and grow them to market share leaders in order to turn them into our next core products.
The cheese market continues to expand each year, we will grow our market share by increasing sales of Camembert, which is top share, and launching new products of natural cheese.
In frozen dessert products, we will establish a strong presence for high value added product Meiji Essel Super Cup Sweet’s in the market and vitalize the overall Meiji Essel Super Cup brand. In addition, we are working hard to develop healthcare-oriented products.
In food products for professional use, such as cream and confectionary ingredients, we will develop distinctive products and secure new business partners.
In the infectious diseases domain, we entered into the vaccine business and expanded our product lines, covering from preventive to therapeutic drugs. Thereby we can offer a wider range of information. In the depression and schizophrenia domain, we will provide various treatment options optimal to the patients’ symptoms and conditions with our rich product lines of brand name drugs and generic drugs. We will reorganize our sales system/organization to adapt for increasing antipsychotic drugs market so that we can expand sales of antipsychotic drug SYCREST. In the immune system and inflammatory disorders domain, we will increase sales of anti-allergy drug Bilanoa by active promotional activities focusing on otolaryngology and internal medicine.
*1:Based on the number of prescriptions
*2:Meiji Seika Pharma only
We will focus on generic drugs in “Speciality generic drugs” and “Essential generic drugs.” In speciality generic drugs, including antibacterial drugs and drugs for CNS (Central Nervous System) disorders, we will increase the sales volume by providing information on both brand-name and generic drugs. We will also strengthen essential generic drugs for lifestyle-related and gastrointestinal disease. In addition to the manufacturing in Thailand and Indonesia, we started production at Medreich in India for the Japanese market to achieve low cost production overseas. As the drug price competition is getting fiercer, a stable supply of high quality generic drugs at a low cost is a tremendous advantage for us. Also, we will develop biosimilars steadily at DM Bio, a joint venture in Korea.
Even though the tough NHI price revision is expected, we will work hard to overcome such conditions to reach JPY 65 billion in net sales for generic drugs by FY3/21.
In the 2020 Medium-Term Business Plan, we are focusing on Mainland China and planning to reach JPY 23 billion in sales by FY3/21, which is approximately two times bigger than the current figures. We will expand our product lines that are already popular in Mainland China, such as milk, yogurt, confectionaries and ice cream. We develop exclusive products for e-commerce tailored to local needs. In addition, considering the potential of the sports nutrition business in Mainland China, we will be developing sports nutritional products.
In the international business as a whole, we will reorganize the management structure and increase the interest and awareness of the Meiji brand in order to improve the Meiji Group corporate value globally. Our goal is to reach JPY 90 billion in net sales for the entire international business by FY3/21.
We accelerate global business development especially in Asian growth market. Currently, we are manufacturing ethical pharmaceuticals and veterinary drugs at local subsidiaries in Indonesia, Thailand, China, Spain, and India. Using these global production system and sales network, we are contributing to the healthcare and the livestock industry in countries around the world.
Medreich is the leading force behind this growth. Medreich has created a production system to manufacture the right quality products at low cost and a global sales network. Medreich uses these as competitive advantages to supply products to 50 countries all over the world (excluding the U.S.). It is expected that the global market will have a rising demand to contract manufactures in the future. Accordingly, we will grow Medreich by not only boosting sales from existing business partners but also creating new business partners.
Strengths of Medreich
*CMO: Contract Manufacturing Organization
CDMO: Contract Development Manufacturing Organization
The Meiji Group operates both food and pharmaceutical business; this is our competitive advantage. As a global corporate group in the “Food and health” fields, we will focus on the “Health and Preventative medicine” domain. To realize this, we established Co-Creation Center, a new research laboratory, in April 2019 under Meiji Holdings Co., Ltd. We create unique value to increase healthy life expectancy by combining expertise built up in food and pharmaceutical business. Specifically, our research topics are aging, diet therapy, and microbiomes (intestinal flora). Also we will collect and utilize cutting edge knowledge and technology through the promotion of open innovation. We will strive to be a world class company in the health and preventative medicine domain.
Use group strengths and open innovation effectively
Our goal of structural reforms is to improve the productivity by executing strategies as described below and achieving KPIs (Key Performance Indicator).
Instead of a 1 liter package, we launched a 900 mL package of Meiji Oishii Gyunyu nationwide and are establishing a strong presence in the market. We will continue our marketing that appeals to its patented manufacturing method and “delicious taste” to differentiate it from other drinking milk. We are developing milk-based drinks with added value. In addition, we are improving efficiency in our production system. We are looking to make the milk business profitable by FY3/21.
We will improve the profitability of the rice blast preventative ORYZEMATE and the foliage herbicide ZAXA liquid formula which are currently mainstay products in this domain. Also we will promote R&D pipelines for promising agricultural chemicals. ME5343 insecticide, ME5223 fungicide and ME5382 insecticide were discovered by our advanced R&D process, and we licensed them out to global chemical companies. We will increase profitability in the agricultural chemical and veterinary drug business by the royalty revenue from those chemicals and the selling of the active ingredients.
Promising Agricultural Chemical Pipelines
In July 2018, the Meiji Group acquired a partial stake in a new company KM Biologics which has inherited the following principal businesses: the human vaccine business, the plasma derivatives business and the veterinary vaccine business from The Chemo-Sero-Therapeutic Research Institute. The Meiji Group has since made it a subsidiary to enter the vaccine business. We will create a value chain that covers preventive through therapeutic treatment of infectious diseases, by combining the advanced R&D capability in vaccines from KM Biologics with our expertise in antibiotics in the Pharmaceutical segment. Thereby, we will strengthen the health and preventative medicine domain noted in the Meiji Group 2026 Vision. Basic concept for Medium-Term Business Plan for KM Biologics is to recover credibility. Our goal is to become a credible company to all stakeholders.
We establish strategic management system by systematically organizing and applying the succession plan that is created based on our leadership value. We will achieve the KPIs set in the Meiji Group CSR 2026 Vision and help solve issues in society. Consequently, we will improve our corporate value.