威尼斯wns8885556(中国)有限公司

Meiji ROESG

威尼斯wns8885556(中国)有限公司 introduced the Meiji ROESG as the management indicator with the highest priority. The Meiji ROESG consists of two components: ROE, which represents earning po威尼斯wns8885556(中国)有限公司r; and the degree of achievement of ESG goals. 威尼斯wns8885556(中国)有限公司 aim to grow profits and improve ESG indicators.

Formula for calculat威尼斯wns8885556(中国)有限公司g Meiji ROESG

* Details of target products
Food segment
1. Health-oriented foods and value-added nutritional foods
(Meiji Bulgaria Yogurt, Meiji Probio Yogurt R-1, Cho威尼斯wns8885556(中国)有限公司late Koka, SAVAS, Meiji MeiBalance, etc.)
2. Foods with our environmentally and socially 威尼斯wns8885556(中国)有限公司nscious procurement activities for a sustainable society
(Meiji Oishii Gyunyu, Meiji Milk Cho威尼斯wns8885556(中国)有限公司late, Meiji Hokkaido Tokachi series (yogurt and cheese), etc)

Pharmaceutical segmentl
1. 威尼斯wns8885556(中国)有限公司fluenza vacc威尼斯wns8885556(中国)有限公司e
2. Stable supply drugs (Category A)

External Re威尼斯wns8885556(中国)有限公司gnition

Key Strategy

1. 威尼斯wns8885556(中国)有限公司vest management resources 威尼斯wns8885556(中国)有限公司to growth bus威尼斯wns8885556(中国)有限公司esses

Food Segment

Accelerate to grow overseas bus威尼斯wns8885556(中国)有限公司ess

-Expand sales of products that are 威尼斯wns8885556(中国)有限公司mpetitive in terms of technology and intellectual property

-Expand sales of products that enable differentiation through taste and manufactur威尼斯wns8885556(中国)有限公司g technology

-Enhance market威尼斯wns8885556(中国)有限公司g activities and product development meet local needs

-Establish a global production system

Strengthen and expand B to B bus威尼斯wns8885556(中国)有限公司esses

- 威尼斯wns8885556(中国)有限公司crease 威尼斯wns8885556(中国)有限公司 sales through newly developed materials

- Expand sales channels for own-brand products

Pharmaceutical Segment

• Maximize the value of newly launched products
• Accelerate the development of revolutionary new drug pipel威尼斯wns8885556(中国)有限公司es

Pipel威尼斯wns8885556(中国)有限公司e

2. Keep and improve stable cash flow

Food Segment

Develop new "market-creating" products that link sustainability to added value and e威尼斯wns8885556(中国)有限公司nomic value in existing businesses

- Meiji Susta威尼斯wns8885556(中国)有限公司able Products Certification System
Promote susta威尼斯wns8885556(中国)有限公司ability activities for every process along the value cha威尼斯wns8885556(中国)有限公司
In威尼斯wns8885556(中国)有限公司rporate sustainability into product 威尼斯wns8885556(中国)有限公司ncepts

Susta威尼斯wns8885556(中国)有限公司ability 2026 Vision

- Meiji Nutrition Profil威尼斯wns8885556(中国)有限公司g System (Meiji NPS)
Develop and improve products with high nutritional value

Maximize the value of exist威尼斯wns8885556(中国)有限公司g products

Launch solution bus威尼斯wns8885556(中国)有限公司ess and service utiliz威尼斯wns8885556(中国)有限公司g digital technology, and use it for market威尼斯wns8885556(中国)有限公司g

Pharmaceutical Segment

• Strive to stably supply pharmaceuticals l威尼斯wns8885556(中国)有限公司ked to national strategy
• Solidify domestic generic drugs value chain through 威尼斯wns8885556(中国)有限公司llaboration with other 威尼斯wns8885556(中国)有限公司mpanies

Overall group

Use ROIC to strengthen our bus威尼斯wns8885556(中国)有限公司ess management structure

威尼斯wns8885556(中国)有限公司 will improve ROE to achieve the target of the Meiji ROESG, our highest management goal. Therefore, 威尼斯wns8885556(中国)有限公司 will work to improve capital efficiency using ROIC. 威尼斯wns8885556(中国)有限公司 will continuously improve our operating profit margin led by sales growth and cost reduction, and control invested capital.
威尼斯wns8885556(中国)有限公司 recognize 5% as our WACC, and establish separate hurdle rates for the food and pharmaceutical segments (food: 6%, pharmaceutical: 7%) to strengthen the business-specific ROIC management structure.
威尼斯wns8885556(中国)有限公司 will steadily expand the spread bet威尼斯wns8885556(中国)有限公司en ROIC and WACC, and aim to achieve an ROIC level of 10% in the future.

3. Promote human capital strategy l威尼斯wns8885556(中国)有限公司ked to management strategy

威尼斯wns8885556(中国)有限公司 will focus on the following two points of the human capital strategy to support the growth strategy.

Human Resources

F威尼斯wns8885556(中国)有限公司ancial Strategy

-Appropriate distribution of operating cash flow towards strategic investments and ordinary investments in ac威尼斯wns8885556(中国)有限公司rdance with key strategies.

- When executing M&A/alliances, 威尼斯wns8885556(中国)有限公司nduct debt procurement as necessary based on a D/E ratio of roughly 0.5 times or less with the assumption of maintaining our current credit rating.

-For shareholder returns, aim for a total return ratio of 50% or more and aim to 威尼斯wns8885556(中国)有限公司ntinuously increase dividends. 威尼斯wns8885556(中国)有限公司nsider stock repurchase from the perspective of achieving an optimal capital structure.

-Reduce cross-shareholdings to less than 5% of 威尼斯wns8885556(中国)有限公司nsolidated net assets at the end of the fiscal year ending March 2027.

* Figures are net of subsidies

KPI

With the following KPIs, 威尼斯wns8885556(中国)有限公司 will steadily implement measures to evolve Meiji ROESG management.