2023 Medium-Term Business Plan


Promote the Meiji ROESG®*Management effectively

Realize both profit growth and sustainability activities

Key Issues

  • * ROESG is a registered trademark for a management indicator developed by Kunio Ito, a professor at Hitotsubashi University.

Promote the Meiji ROESG® Management Effectively

Offering Health Value: our founding commitment

We reaffirm this commitment and will be a sustainable corporate group that shares health value with people and societies around the world in order to achieve growth

  • Set up our unique indicators as KPI. Indicators include sustainability goals unique to the Meiji Group in addition to ROE and ESG
  • Link with officer compensation to ensure efficacy

Business Strategy: Food segment -1

Recover from the slump in our core business

  • Yogurt and functional yogurt
    • Improve functionalities and evidences of existing products
    • Launch new products that have new added-value
    • Venture into new domains and new market
  • Nutrition
    • Sports nutrition: Increase sales of SAVAS products
    • Infant formula, enteral formula: Increase share by enhancing product values
  • Chocolate
    • Appling the value of cocoa, develop innovative products in new domains and at various serving temperature
    • Promote procuring sustainable cocoa and adding value to products
    • Optimize production system

Business Strategy: Food segment -2

Expand overseas Business

  • China
    • Increase production capacity significantly

      Production capacity at the end of FY 2023 (Based on monetary amount, compare to FY 2020)

      Milk and yogurt
      About 4 times (Expand capacity in Suzhou*1,New factory in Tianjin*2,
      About 2 times (New factory in Guangzhou*3)
      Ice cream
      About 2 times (New factory in Shanghai*3)
    • Increase sales of functional yogurt and SAVAS

      *1: FY 2021 *2: FY 2022 *3: FY 2023

  • Other area
    • Strengthen business partnership with Danone regarding the infant formula tablets

Business Strategy: Pharmaceutical segment -1

Integrate business operations of Meiji Seika Pharma and KM Biologics (Expand vaccine business)

Improve research and development collaboration

Enhance supply management integrating production and sales
Progress product development

  • Inactivated vaccine for COVID-19
  • DTaP-IPV/Hib vaccine
  • Dengue vaccine

Expand overseas business

Establish new modality for drug discovery/development by promoting open innovation

Business Strategy: Pharmaceutical segment -2


  • Overseas
    • Expand businesses with existing customers and capture new customers
    • Strengthen R&D capabilities to secure a competitive advantage
    • Expand production capacity (capital expenditure)
    • Respond to increasing demand for access to medicines
  • Japan
    • Use Medreich’s large-scale production capacity for Japanese market

*The revenue recognition standard is not applied to the graph of sales in the business strategy.

Business Strategy: Venture into New Domains -1

Contribute in immunity domain

  • Offer new value that contributes to extending healthy lifespans
    • Commercialize anti-ageing ingredients
    • Create immunity-boosting substances

R&D Structure (collaborations: industry/ government/ academia)

Business Strategy: Venture into New Domains -2

Strengthen external partnerships to create new businesses (promote open innovation)

  • 1. Internal development program
    • Establish innovation business strategy department
    • Solicit internally to launch new businesses driven by young employees
    • Partner with external contractors (major corporations, ventures, academia, consultants, etc.)
  • 2. External development program (Meiji accelerator program)
    Solicit to launch new businesses driven by internal young employees with external ventures/startups
  • 3. Search startups/ventures
    • (1)LP*investment in New Protein Fund in Big Idea Ventures
      Evaluate businesses related to next-generation protein technology such as plant-based protein
    • (2)TECH PLANTER by Leave a Nest
      Participate in food tech and biotech domains

* LP: Limited Partner

Improve Business Management: Using ROIC effectively -1

Improve the Group capital productivity

  • Review noncore businesses, redistribute management resources to growth businesses
  • Improve capital productivity by business

Improve Business Management:Using ROIC effectively -2

Defined business categories for ROIC evaluation

Food segment: 10  Pharmaceutical segment: 9

Improve Business Management:Using ROIC effectively -3

Set WACC 5%, Keep whole group equity spread ≥ 5%

Financial strategy: Capital rationing

  • Continue investments to grow business (growth investment) within cash flows from operating activities
  • Effective M&A as part of growth strategy
  • Reduce cross-shareholding by 30% (based on book value)
  • Increase dividend continually, Gradually increase dividend payout ratio to 40%
  • Examine share repurchase considering optimal capital structure

Sustainability: Materiality -1

Healthier Lives

  • Develop health-conscious products and nutritional products with added value
  • Promote and spread healthy diets and food culture
  • Develop and supply vaccine for COVID-19
  • Develop vaccine for Dengue fever

Sustainability: Materiality -2

Caring for the Earth

  • Promote using renewable energy
    (install solar power generator, purchase renewable energy)
  • Get SBT (Science Based Targets) certification in FY 2021
  • Introduce internal carbon pricing in FY 2021
  • Abolish totally the use of specific fluorocarbons
  • Reduce (use lighter and thinner plastic container packaging and switch to paper)
  • Use bioplastics and recycled plastic
  • Reduce water use, protect and conserve water resources
  • Respond to water risks

Sustainability: Materiality -3

A richer society

  • Promote Diversity and Inclusion
  • Conduct human rights due diligence and disclose results

Sustainable procurement

  • Establish responsible supply chain (Questionnaire survey for sustainable procurement)
  • Plan procurement of sustainable cocoa beans, certified palm oil and environmentally friendly paper

Sustainability: Sustainability investment

Invest JPY 30 bn in 3 years in sustainability investment Invest strategically to realize 2026 vision

KPIs for 2023 Medium-Term Business Plan

2023 Medium-term Business Plan Target for sales* and operating profit