Driven by a Hungry Spirit
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NISSIN FOODS HOLDINGS Instant Noodles Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Sed nec sapien eu sem dapibus vehicula. Nam dapibus, velit eu ultricies consequat, nisi ipsum convallis libero DRIVEN BY A HUNGRY SPIRIT ANNUAL REPORT 2015 PROFILE FOREVER CHALLENGING THE STATUS QUO The NISSIN FOODS Group began by gratifying people with the pleasures with the invention of the world’s first and delights food can provide. instant noodles. We also invented the With this goal in mind, we began do- world’s first instant noodles sold in ing business in the Americas in the 1970s cups. These inventions gave rise to and in China in the 1980s. We are in- worldwide innovation in food culture. creasing our presence in these markets, DRIVEN BY A HUNGRY SPIRIT Further continuous pursuit of techno- as well as in Southeast Asia and Europe. To realize our vision for 2026 of logical innovation led to the develop- We also do business and, forever chal- embodiment of an EARTH FOOD ment of instant noodles for use as lenging the status quo, seek to create a CREATOR that contributes to space rations. new food culture in Turkey, Africa, and society and the earth by gratifying Instant noodles, our main business, other regions where the instant noodles people everywhere with the are an excellent product that offers market remains immature. pleasures and delights food can provide, the NISSIN FOODS Group value in five ways: they are tasty, stor- (The Group) aspires to develop into able for long periods of time, easy to a global company. To express our prepare, inexpensive, and safe and san- commitment to forever challenge the itary. Furthermore, we are forever chal- status quo, we chose for the cover lenging the status quo to create new of this report a visual depicting the value that goes beyond these five value “hungry spirit” that is a critical part of the Group’s DNA extending into areas. Guided by our Group philosophy, outer space and the phrase “DRIVEN signified by “EARTH FOOD CREATOR”, BY A HUNGRY SPIRIT.” we contribute to society and the earth NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 01 CONTENTS NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 02 CORPORATE DNA Our history began with the invention of the world’s first instant noodles. The NISSIN FOODS Group’s instant noodles business is far and away the market share leader in Japan. Instant Noodles Market Share in Japan 46.7% The Group holds a solid position as the share leader in Japan, commanding a market share of 46.7% on a value basis. Source: NISSIN FOOD PRODUCTS CO., LTD. NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 03 CORPORATE DNA 3 INVENTIONS 2005 Space Ram Space Ram was developed in 2005 as the world’s first ramen noodles to be 1971 consumed in space. Creating ramen that can be eaten Cup Noodle even in zero gravity required a wealth of knowledge and Cup Noodle was invented new technologies. Our quest 1958 in 1971 as world’s first to create food innovation cup-type instant noodles extending from Earth into Chicken Ramen that are prepared only hot space continues. water, eliminating even the Chicken Ramen was invented need for bowls. This instant in 1958 as the world’s first food product, sold in a instant noodles, simply container used for storage, prepared a bowl and hot preparation, revolutionized water. This groundbreaking the way people eat. product was the starting point for all instant noodles, for which annual global demand now exceeds *Source: World Instant Noodles Association (WINA) 100 billion* servings. NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 04 NISSIN TODAY BRANDS Net Sales by Business Segment FOR EVERYONE NISSIN FOOD PRODUCTS 50.0% The NISSIN FOODS Group’s business domains extend MYOJO FOODS 9.1% Chilled and Frozen Foods 13.1% from instant noodles to chilled and frozen noodles, Conf. and Beverage 7.9% Domestic Others 0.7% confectionery, beverages, and various other food The Americas 8.3% categories. We bring smiles to the faces of people and China 8.0% Asia 1.8% promote health through food. EMEA 1.1% NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 05 NISSIN TODAY Instant Noodles Confectionery We offer various bag-type instant We offer mainly cereals, now noodles and cup-type instant attracting a high degree of attention, noodles, including flagship products and confections, principal products that have remained popular for more with a history since 1924. Granola has than 50 years. recently become of major hit product. Instant Beverages Noodles Confectionery BUSINESS With the concept of promoting health through the stomach, two categories of drinks are available, lactobacillus FIELDS drinks and yoghurt drinks. Beverages IN JAPAN Chilled Foods Frozen Foods Developed under the concept of Frozen Foods offering easy, convenient, genuine Chilled Foods home-style dishes, the frozen Reflecting our commitment to products line-up is centered on genuine, fresh flavor, our line noodles, including authentic pasta. of chilled products includes The line-up also includes snacks premium ramen, yakisoba, and and cooked rice that can be other noodle varieties. prepared in a microwave oven. NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 06 NISSIN TOMORROW REALIZED POTENTIAL The instant noodles market that we created has grown into an enormous global market with total annual demand exceeding 100 billion* servings. We are now directing our energy to competing throughout the global market. Global Demand for Instant Noodles Asia (Including China) 80.6% Japan 5.3% Oceania 0.4% North America 4.4% Central and South America 3.5% 102.74 Europe 3.5% billion Africa 1.9% servings Other 0.3% The NISSIN FOODS Group is accelerat- ing global development, focusing on Asia, including China, which accounts for 80.6% of total worldwide demand *Source: World Instant Noodles Association (WINA) for instant noodles. NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 07 NISSIN TOMORROW BROAD GEOGRAPHIC FIELDS DIVERSE APPROACH TO OVERSEAS MATURE MARKETS Expand earnings potential by increasing strength and efficiency. Europe China and Hong Kong North America GROWTH Southeast MARKETS Asia Expand size of operations after Central and Middle East establishing brands South America and in specific areas. North Africa East Africa NEW MARKETS Assess market demand through early entry in collaboration with local partners, involving investment of small amounts to minimize risk. NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 08 FINANCIAL PERFORMANCE Net Income/ Net Sales Operating Income Return on Equity EPS (Billions of yen) (Billions of yen) (Billions of yen) (Yen) Net sales Operating income Net income Return on equity (%) 431.6 34.5 20.8 188 417.6 18.9 19.3 171 175 375.0 380.7 382.8 18.5 18.5 168 168 27.7 7.7 26.2 24.3 24.0 6.7 6.4 6.0 5.3 (FY) 2011 2012 2013 2014 2015 (FY) 2011 2012 2013 2014 2015 (FY) 2011 2012 2013 2014 2015 (FY) 2011 2012 2013 2014 2015 Total Assets/ Cash Dividends per Share/ Equity Ratio Cash Flows Payout Ratio Capital Expenditures (Billions of yen) (Billions of yen) (Yen) (Billions of yen) Total assets Cash flows from operating activities Cash dividends per share Equity ratio (%) Cash flows from investing activities Payout ratio (%) Cash flows from financing activities 512.7 75 75 75 75 30.8 32.6 32.0 479.5 29.3 30.2 30.4 70 446.1 27.5 409.7 414.7 70.6 23.0 66.3 67.6 68.7 69.4 21.6 44.7 43.8 44.7 42.9 18.9 37.3 (4.7) (8.5) (8.0) (9.4) (9.5) (4.8) (10.1) (12.8) (31.3) (33.4) 2011/3 2012/3 2013/3 2014/3 2015/3 (FY) 2011 2012 2013 2014 2015 (FY) 2011 2012 2013 2014 2015 (FY) 2011 2012 2013 2014 2015 NISSIN FOODS HOLDINGS ANNUAL REPORT 2015 09 NON-FINANCIAL PERFORMANCE Number of Employees *1 CO2 Emissions Water Use Number of Female Employees 3 (10,000 t-CO2) (10,000 m ) (Female) Japan Japan Number of Employees Overseas Overseas Number of Female Employees 17.2 17.4 356.4 1,720 16.7 16.5 347.2 341.2 345.9 1,569 1,622 1,514 1,525 14.0 13.2 13.4 13.7 133.2 133.6 118.3 116.6 *1 The numbers are calculated based on data from NISSIN FOODS HOLDINGS, NISSIN FOOD PRODUCTS CO., 323 333 338 348 356 LTD., NISSIN CHILLED FOODS CO., LTD., NISSIN FROZEN FOODS CO., LTD., NISSIN BUSINESS SUPPORT CO., LTD., and NISSIN BUSINESS SUPPORT PLUS CO., LTD. (FY) 2012 2013 2014 2015 (FY) 2012 2013 2014 2015 (FY) 2011/3 2012/3 2013/3 2014/3 2015/3 NISSIN Global Food Safety Institute Waste Generated/ Change in Quality Survey Activities Recycling Rate (Japan) Eco-efficiency (Japan) *2 (Worldwide) (1,000 t) (%) Japan Recycling rate (%) Activity days Overseas Total number of inspections 99.4 99.4 99.5 99.4 397 374 *2 Eco-efficiency refers to the volume of business 337 activity per of environmental impact and is used as 318 329 guideline for reducing environmental impacts through 3.10 43.3 improvements in technology and economic efficiency 41.2 39.8 40.6 2.94 2.74 2.72 (as defined by the Ministry of the Environment’s 160 Environmental Accounting Guidebook). 2.45 143 150 The NISSIN FOODS Group has calculated 123 127 environmental efficiency using the formula below. 22.8 23.6 23.7 20.6 Production weight (t) Environmental-efficiency = CO2 emissions (t-CO2) • Data is from the factories of NISSIN FOOD PRODUCTS (Kanto, Shizuoka, Shiga, Shimonoseki), Sapporo Nissin, Ajinihon.