Nipponham Group Annual Report 2017 Nipponham Group Annual Report 2017 Year Ended March 31, 2017 Year Ended March 31, 2017
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Nipponham Group Annual Report 2017 Nipponham Group Nipponham Group Annual Report 2017 Year Ended March 31, 2017 Year Ended March 31, 2017 Ended March Year Providing the greatest “Joy of Eating” in the world Corporate Philosophies 1. Under the basic theme of “Joy of Eating” our company creates a culture that marks an epoch and contributes to society. 2. Our company is a place where employees can feel truly happy and fulfilled. Management Principles 1. Act with noble ideals and the determination to achieve them. 2. Learn from others, teach others, and be willing to be taught by others. 3. Create the times by meeting the needs of the times. 4. Expand relationships through quality and service, and take responsibility for all people with whom we have relationships. 5. Strive for a highly functional organization. Contents Growth Trajectory of the Nipponham Group 01 Sales Overview 34 Providing Opportunities to Play Sports 55 Solving Social Problems about Food and Messages from General Managers Nutritional Support for Athletes 55 the System for Delivering the Joy of Eating Processed Foods Business Division 36 Human Resources Initiatives 56 – Value Creation Process – 06 Fresh Meats Business Division 38 Environmental Activities 57 Performance Highlights 10 Affiliated Business Division 40 Corporate Governance 58 Consolidated Financial Highlights 11 Overseas Business Division 42 Internal Control 62 Interview with Outside Director 63 A Message to Stakeholders 12 Sustainability Highlights 44 Board Members and Executive Officers 64 A Message from the Vice President 20 Research and Development 46 Special Feature: Cultivating the Bounty of Nature with Our Own Hands Approaches to Ensure Product Quality 48 Management’s Discussion and Analysis 66 Creating Value through Our Vertical Initiatives on CSR Procurement 51 Consolidated Financial Statements 74 Integration System 24 Working with Customers 51 Notes to Consolidated Financial Statements 79 Food Allergy Initiatives 52 Main Companies of the Group 110 Initiatives by the Nipponham Foundation 53 Corporate Data, Stock Information 111 Food Education Initiatives 54 Forward-looking statements This annual report includes forecasts regarding targets, strategies, and earnings. These forecasts are based on information available at the current time and contain certain assumptions about the future. They are subject to numerous external uncertainties in areas such as the economic environment, market trends, and exchange rates. Actual performance may differ significantly from the targets in this presentation, and investment decisions should not be based exclusively on them. Growth Trajectory of the Nipponham Group The history of the Nipponham Group started in 1942 with the establishment of the Tokushima Meat Processing Plant, which produced hams and sausages. We have since grown to handle everything from fresh meat, an ingredient in our products, to processed foods, marine products, dairy products, and natural flavorings. The Group continues to evolve into the world leader in delivering the “Joy of Eating.” STARTED PRODUCING HAMS AND SAUSAGES 1942 Established the Tokushima Meat Processing Plant (the predecessor of Proposing a Tokushima Ham Co., Ltd., and the new culinary current Nipponham Group) culture Advertising truck sent around western Japan from 1953 to 1960 1940s–1950s Socially significant Founding days: transitions completed Contributing to the diversification of food culture by the Group •End of World War II •Electric refrigerators become commonplace •First supermarket in Japan opens A society of mass consumption emerged in the 1950s following food shortages before and after World War II. Production capacity increased due to the rising demand for hams and sausages caused by the Westernization of food culture, refrigerators became commonplace in households, and income levels increased. Nipponham Group Annual Report 2017 01 OVERSEAS BUSINEssES LAUNCHED 1977 Acquired Day-Lee Meats, Overseas Inc., of Los Angeles, U.S. expansion (now Day-Lee Foods, Inc.) begun ENTERED FARMING BUSINEss 1970 IMPLEMENTED INTEGRATION SYSTEM 1968 Established the Fresh 1973 Enhanced product Established Nippon Meats Division Established Nippon Pork Broiler Co., Ltd. Co., Ltd. (now Nippon Food safety and security by (now Nippon White Packer Kagoshima, Inc.) and producing ham and Farm Co., Ltd.) built an integrated system sausage ingredients going from fresh meat in-house production to processing 1963 1966 1972 1973 Tokushima Ham Co., Ltd., Introduced Winny® Entered the processed Introduced Gyudon no Gu and Torisei Ham Co., Ltd., Responding to foods business (cooked beef) merged to form Nippon Skinless wiener the diversification Meat Packers, Inc. 1972 line launched of culinary Introduced Sauce for (now NH Foods Ltd.) culture Yakiniku (Japanese-style barbecue) 1967 1970 Introduced Kon-chan Introduced Buntatta Sausages Sausages 1967 1969 1973 Promoted to the 1st Launched Introduced the Consumer Established the professional Section of the Osaka program to Delegate Committee System, baseball team Nippon-Ham Securities Exchange and incorporate a unique monitoring system Promoting health Fighters Baseball Club Co., Ltd. Tokyo Stock Exchange homemaker feed- through sports back in product development 1960s 1970s Pursued stable supply of safe and Proposals for a new food culture reliable products •Liberalization of pork imports •Oil shocks •Westernization of eating habits •Tokyo Olympics held •Expansion of nuclear families •Development of the restaurant industry The Group entered the farm business to guarantee stable procurement of raw The Group ambitiously proposed a new food culture of fresh meats and diversified materials and to respond to a growing demand for hams and sausages. By produc- its business through efforts that included supplying ground beef and pork cutlets to ing products from our own raw materials, we became able to guarantee their safety the quickly growing restaurant industry. and reliability to consumers. 02 Nipponham Group Annual Report 2017 INTEGRATION SYSTEM SET UP OVERSEAS ENTERED THE PROCEssED 1997 1998 1988 FOODS BUSINEss OVERSEAS Launched Omugi-Gyu® Established Nippon Shokuhin Implemented an integrated 1989 Branded Mexicana S.A. DE C.V. (now NH system from production to the Established overseas beef to Foods Mexicana S.A. DE C.V.) marketing of fresh meats Thai Nippon reinforce food overseas with the purchase of Foods Co., safety and Whyalla Feedlot (Australia) Ltd. security 1977 1977 1993 1993 Created a meat sales system Established Yakumo Farm Began branding fresh meats Fresh meat sales (now Interfarm Co., Ltd., company, Launched Donan Office) Enhanced fresh the Nipponham the hog farming meat safety and Food Group, business security reached 100 business sites 1983 1985 Introduced Introduced ® Launched Ultrathin-sliced Sharo SCHAU ESSEN coarse-ground Easily prepared Improving ham launched Wanzu pork wieners for authentic convenience for particularly customers Chinese meals with new chilled health-conscious seeking authen- brought out pizza line consumers tic products 1981 1984 1987 1994 1994 1996 1998 Introduced Introduced Introduced Introduced Launched the Introduced the Entered the chilled Thin Slice® Hams Chicken Nuggets CHIKICHIKI Bone® Entier® Chuka Meisai® series Tenshinkaku® series pizza market 1999 Introduced Mori-no-Kaori® coarse-ground wieners ENTERED THE ENTERED THE LAUNCHED THE YOGURT AND 1993 ENTERED THE MARINE PRODUCTS FREEZE-DRIED LACTIC ACID PROBIOTIC BEVERAGES Introduced Vanilla NATURAL FLAVOR- BUSINEss FOODS BUSINEss BUSINEss Yogurt ING BUSINEss 1981 1984 1992 1995 Broadened Acquired Marine Foods Established Nippon Dry Inherited the business of Established Nippon Pure food Corporation Foods Co., Ltd. (now Kansai Luna, Inc. (now Food, Inc. Freeze-dried Division of Nippon Luna, Inc.), which operations Hoko Co., Ltd.) began to sell yogurt beverages ahead of other companies in Japan 1991 Completed the Research and Development Center in Tsukuba, Ibaraki 1985 to 2003 Medium-Term Management Plan Parts I to VI 1980s 1990s Faced the challenges of expanding food product Proposals for a product lineup suited to categories and building integration systems abroad diversifying lifestyles •Spread of microwave ovens •Liberalization of imports of beef and oranges •Enactment of the Equal Employment Opportunity Law •Growth of the ready-made meal market The Group expanded its food product categories to the processed marine products In response to the social advancement of women and growing interest in authentic business, the freeze-dried products business, the yogurt and lactic acid probiotic food, the Group expanded its product lineup so that customers can easily enjoy beverages business, and others, promoting evolution to a comprehensive food com- authentic flavors. We also enhanced our competitiveness by developing category- pany. We also aimed to strengthen our business foundation by integrating our beef leading products. business in Australia. Nipponham Group Annual Report 2017 03 2011 2014 Established Nippon Golden Pig Joint Launched Stock Company Co., Ltd. in Vietnam Dolce Porco® Sales in the fiscal (now NH Foods year ended March Vietnam Joint 31, 2008: Stock Company) Over trillion yen 1 2014 Established NH Foods Brazil 2002 2002 2003 2013 2015 Launched Sakurahime®, Started operations of Started operations of Launched Megumi-no-Kuni® Launched domestically produced the Kansai Office, Nippon the Tokyo Office, Nippon Mugikomachi® chicken Construction of Logistics Center, Inc. Logistics Center, Inc. fresh