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CORPORATE GUIDE HOUSE FOODS 2017 GROUP INC. 005_9038497222908.indd 2 2017/08/28 17:19:59 Group Philosophy Through food, we aim to be a good corporate citizen, connecting and collaborating with people to create smiles in their lives. Status of inclusion on SRI indices (as of July 31, 2017) The FTSE4Good Index is a series FTSE Blossom Japan Index is The MSCI Japan ESG Select Morningstar Socially Responsible of stock indices to promote invest- established by a global index pro- Leaders Index is designed to rep- Investment Index is the first ment in companies that have met vider, FTSE Russell. This index is resent the performance of compa- domestic index based on social global standards for environment, designed to measure the perfor- nies that have high ESG responsible investment. This index society and governance. mance of Japanese Companies (Environmental, Social and is calculated thorough the index- House Foods Group Inc. has which are favorably handling the Governance) performance which ation of the share prices of 150 been continuously selected as a issues regarding environment, are selected from the constituent companies selected from among constituent of the FTSE4Good society, and governance (ESG). stocks of the MSCI Japan IMI Top nearly 4,000 listed companies in Index, one of the leading indices of FTSE Blossom Japan Index is 500 Index. The Company has been Japan by Morningstar Japan K.K. socially responsible investment used for the creation and evalua- granted an “A” ESG rating by because of their higher level of (SRI), since 2006. tion of sustainable investment MSCI INC. sociability. funds and other financial instru- THE INCLUSION OF House Foods Group Inc. IN ANY ments. MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF House Foods Group Inc. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES. 1 CORPORATE GUIDE 2017 CORPORATE GUIDE 2017 010_9038497222908.indd 1 2017/08/28 17:31:54 Contents Philosophy Group Group Philosophy 1 About House Foods Group 3 Top Message 9 Overview by Business Segment 13 Corporate Governance 19 Group CSR 28 11 Years’ Selected Financial Data 33 Consolidated Financial Statements 35 House Foods Group Companies 39 Corporate Information 42 CORPORATE GUIDE 2017 CORPORATE GUIDE 2017 CORPORATE GUIDE 2017 2 010_9038497222908.indd 2 2017/08/28 17:31:58 About House Foods Group Aiming to be a Good Corporate Citizen to Create Smiles in People’s Lives “In every happy home throughout Japan you will find the warm flavor of home cooking, House” To realize this wish, we have always worked to address the issues in each era. Let us present the history of House Foods Group along with our efforts to create smiles in people’s lives. 1913~ 1960~ 1970~ From herbal medicine Development of solid roux Expanded product lineup with business to the development and the launch of Vermont the launch of retort pouched of curry powder, leading to Curry, a long-selling hit foods, etc. in response to the launch of “House Curry” product diversified customer needs The predecessor of House Foods Amid the spread of instant foods In order to satisfy our customer Group Inc. was Urakami Shoten, owing to economic growth, we needs which had diversified along an enterprise dealing in herbal launched a solid curry roux prod- with the improvement of their medicines, which was founded in uct in 1960. Additionally, by lever- quality of life, we proactively em- 1913 in Kawaraya-machi, Minami- aging our technologies, we barked on new businesses. These ku, Osaka-city by Seisuke Uraka- developed a mild tasting solid challenges consequently facilitated mi at the age of 21. It was in 1921 roux curry using apples and honey our business expansion, leading that Seisuke, who had mainly as ingredients with the concept of to a great leap as a company. dealt in various medical ingredi- “curry that can be enjoyed togeth- We launched “Kukure Stew” in ents, undertook the bottling and er with children.” In 1963, we cre- 1970 and “Kukure Curry” in 1971 sales of curry powder from his ated “Vermont Curry,” which is and entered the retort pouched customer. Although it was a time our mainstay product and loved foods market to develop products when “rice curry” just began to by people even today. Curry, which are long lasting and save spread among restaurants in ur- which was previously considered the trouble of cooking. We also ban areas, Seisuke started to re- a “spicy food for adults,” was dra- launched “Shanmen soy sauce search curry powder in earnest matically transformed with the flavor” in 1973, entering the pack- because he found that most of the creation of “Vermont Curry” into a aged noodles market. Further- spices included in curry powder nutritionally balanced dish for more, we entered the snack foods were common to the Chinese home cooking. Its TV commercial market in 1977 and the beverage herbal medicines that he handled. also caught much attention, mak- market in 1983 with the respective He continued his research and ing it a massive hit product. launches of “Potato Chips” and eventually succeeded in creating “Rokko no Oishii Mizu.” his original curry powder in 1926. In 1928, the trade mark was changed to “House Curry,” and House Curry started its business operation as a household food manufacturer. 3 CORPORATE GUIDE 2017 CORPORATE GUIDE 2017 010_9038497222908.indd 3 2017/08/28 17:31:59 About House Foods Group 1981~ 2004~ 2013~ Started overseas Launched “Ukon No Chikara” Transferred to a holding company development to offer the with a good balance between structure to strengthen management delicious flavors cultivated taste and health to expand the systems and enhance the Group’s in Japan to the world Health Food Business capabilities as a whole We started our overseas expan- Since around 2000, when people Entering into an era with increas- sion with the establishment of a had become more conscious ing concern over significance and representative’s office in Los An- about their own health, progress diversity of food, we are striving to geles in the United States in 1981. has been made in research into strengthen our management sys- In 1983, we established House the functional properties of spices. tems in order to achieve further Foods & Yamauchi, Inc. (currently “Ukon No Chikara” was devel- growth. In 2013, with the aim of House Foods America Corpora- oped and launched in 2004, enhancing the competitiveness of tion) to enter the tofu business in based on the idea of making a each division and creating corpo- the United States. Tofu has re- functional health drink by using rate value for the Group as a ceived much attention as a healthy turmeric, which is essential for whole, we transferred to a holding food and tofu products have making curry. Despite containing company structure, with a new achieved significant growth to 30mg of curcumin, an active in- corporate name of “House Foods date. After 2000, we started new gredient of turmeric, the distinctive Group Inc.” overseas operations such as the bitterness was moderated and a In 2015, we consolidated Ich- launch of curry roux in China as refreshing taste was achieved. ibanya Co., Ltd., which operated well as the launch of home des- The name “Ukon No Chikara” re- curry restaurants, to strengthen serts and functional beverages in flects our wish to provide our cus- the Restaurant Business domesti- Southeast Asia. We also expand- tomers with the inherent benefit of cally and internationally. In 2016, ed our curry restaurant business turmeric to the maximum extent. we also consolidated Gaban Co., to the United States, China, Tai- Because of the convenient and Ltd., which we previously had an wan, South Korea, etc., focusing easy way to take in active ingredi- alliance with, to improve our ability on the spread of Japanese-style ents with an enjoyable taste, it be- to respond to customer needs in curry. came a huge hit, leading to the spices for commercial use. further acceleration of efforts for the Health Food Business. CORPORATE GUIDE 2017 CORPORATE GUIDE 2017 4 010_9038497222908.indd 4 2017/08/28 17:32:00 About House Foods Group Data to understand House Foods Group Spice / Seasoning / Health Food Processed Food Business Business 44.2% 11.1% Fiscal year ended The Group is engaged in the The Group is engaged in the business of manufacturing and March 2017 business of manufacturing, selling spices, seasonings, pro- selling and direct marketing of cessed foods and food-service Proportion of Consolidated products in the domestic market. Net Sales* health foods and functional bev- Through offering a wide range erages in the domestic market. of products represented by With a vast product lineup pos- curry roux products, stew roux sessing both functionality and products, retort pouched curry ¥283,812 million tastiness, we support a healthy products and spice products, lifestyle through providing every- we contribute to enhancing the day diet. experience of family meals. Restaurant International Business Food Business Other Food Related 17.2% 6.7% Business The Group is engaged in the The Group is engaged in the business of operating restau- business of manufacturing and rants in the domestic market selling foods overseas. We and the overseas market. The believe that we should capitalize 20.8% Group provides Japanese- on the technology developed in style curry to customers in Japan to provide new value in The Group is engaged in busi- countries throughout the world foodstuffs, and offer the world nesses such as transportation through “CURRY HOUSE Coco ICHIBANYA,” a restaurant spe- of food that the Group has and warehousing, manufacturing developed.

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