Kewpie Corporation TSE:2809
Kewpie : Annual Report 2024（4,991KB）
Source: MarketScreener
December 1, 2023 to November 30, 2024
Kewpie CorporationThe information contained in this report is derived from Kewpie Corporationʹs (the ʺCompanyʺ) Annual Securities Report in Japanese filed with the Commissioner of the Financial Services Agency on February 28, 2025 in accordance with the Financial Instruments and Exchange Law, and has been translated into English for the convenience of readers outside Japan.
Document Title:
Annual Securities Report
Corporate Name:
KEWPIE KABUSHIKI‐KAISHA
English Corporate Name:
Kewpie Corporation
Name and Title of Representative:
Mitsuru Takamiya
Representative Director
President and Chief Executive Corporate Officer
Location of Head Office:
4‐13, Shibuya 1‐chome, Shibuya‐ku,
Tokyo 150‐0002, Japan
Contact:
Takumi Tomita
Corporate Officer
In Charge of Accounting and Finance
Telephone:
+81‐3‐3486‐3331
Table of ContentsPage
Outline of the Company 1
Principal Management Indexes 1
Nature of Business 3
Outline of Associated Companies 5
Employees 9
Business Operations 11
Management Policy, Business Environment, Tasks Ahead, Etc 11
Sustainability Approach and Initiatives 14
3 Operational Risks 28
Management Analysis of Financial Position, Operating Results and Cash Flows 35
Material Contracts 40
Research and Development 40
Facilities and Equipment 44
Investments in Facilities and Equipment 44
Principal Facilities and Equipment 45
The Company 48
Shares 48
Number of authorized and issued shares 48
Stock acquisition rights 48
Exercise of bonds with stock acquisition rights containing a clause for exercise price revision 48
Principal shareholders 49
Acquisition of the Company's Treasury Stock 50
Dividend Policy 51
Corporate Governance 52
Financial Information 93
Consolidated Financial Statements 94
Consolidated financial statements 94
Other 147
Independent Auditors' Audit Report and Internal Control Audit Report 148
Stock Information of Reporting Company 152
Outline of the Company
Principal Management Indexes
Consolidated principal management indexes for the five years ended November 30, 2024
Period ended
Nov. 2020
Nov. 2021
Nov. 2022
Nov. 2023
Nov. 2024
Net sales
(millions of yen)
531,103
407,039
430,304
455,086
483,985
Ordinary income
(millions of yen)
28,989
29,698
27,249
20,490
36,874
Profit attributable to owners of parent
(millions of yen)
11,591
18,014
16,033
13,174
21,419
Comprehensive income
(millions of yen)
14,347
24,546
32,635
23,989
30,933
Total net assets
(millions of yen)
287,356
269,301
294,623
311,303
331,638
Total assets
(millions of yen)
454,276
381,003
403,384
426,006
462,372
Net assets per share
(yen)
1,676.05
1,767.14
1,925.54
2,027.90
2,174.74
Earnings per share
(yen)
81.04
128.17
115.34
94.78
154.10
Earnings per share – diluted
(yen)
—
—
—
—
—
Equity ratio
(%)
52.8
64.5
66.4
66.2
65.4
Return on equity
(%)
4.9
7.4
6.2
4.8
7.3
Price earnings ratio
(times)
26.8
18.0
21.2
27.2
22.3
Cash flows from operating activities
(millions of yen)
34,955
38,533
27,199
23,725
63,126
Cash flows from investing activities
(millions of yen)
(26,039)
(20,277)
(15,947)
(17,721)
(23,893)
Cash flows from financing activities
(millions of yen)
5
(18,701)
(16,812)
(9,514)
(21,126)
Cash and cash equivalents at the end of the fiscal year (millions of yen)
65,777
66,703
65,335
62,433
80,512
Number of regular full‐time employees,
and average number of temporary employees in brackets
16,003
[9,268]
10,719
[5,166]
10,696
[5,089]
10,642
[4,811]
10,517
[4,313]
(Notes) 1. Earnings per share – diluted is not presented because of no issue of potential shares.
In the fiscal year ended November 30, 2021, the Company finalized the provisional accounting treatment for business combinations. Accordingly, the principal management indexes pertaining to the fiscal year ended November 30, 2020 have been retroactively adjusted to reflect the finalization of the provisional accounting treatment.
In the fiscal year ended November 30, 2021, K.R.S. Corporation (ʺKRSʺ) and its subsidiaries have changed from being consolidated subsidiaries to being affiliated companies accounted for by the equity method, as the Company sold part of the shares of KRS.
The Company has adopted the ʺAccounting Standard for Revenue Recognitionʺ (ASBJ Statement No. 29, March 31, 2020) and relevant guidance effective as of the beginning of the fiscal year ended November 30, 2022. Accordingly, the principal management indexes pertaining to the fiscal year ended November 30, 2022 onward have been adjusted to reflect the adoption of said accounting standard and relevant guidance.
Non‐consolidated principal management indexes for the five years ended November 30, 2024
Period ended
Nov. 2020
Nov. 2021
Nov. 2022
Nov. 2023
Nov. 2024
Net sales (millions of yen)
176,734
178,513
184,084
192,867
205,599
Ordinary income (millions of yen)
16,214
15,518
15,110
9,496
18,330
Profit (millions of yen)
9,794
11,009
12,644
9,776
13,380
Paid‐in capital (millions of yen)
24,104
24,104
24,104
24,104
24,104
Total number of issued shares
150,000,000
141,500,000
141,500,000
141,500,000
141,500,000
Total net assets (millions of yen)
156,326
151,519
158,264
163,565
171,445
Total assets (millions of yen)
250,929
254,560
252,832
257,028
282,839
Net assets per share (yen)
1,092.88
1,090.03
1,138.56
1,176.71
1,233.40
Annual dividends per share, and interim dividends per share in brackets (yen)
40.0
[20.0]
47.0
[20.0]
47.0
[20.0]
50.0
[23.0]
54.0
[23.0]
Earnings per share (yen)
68.47
78.33
90.96
70.33
96.26
Earnings per share – diluted (yen)
—
—
—
—
—
Equity ratio (%)
62.3
59.5
62.6
63.6
60.6
Return on equity (%)
6.3
7.2
8.2
6.1
8.0
Price earnings ratio (times)
31.8
29.5
26.9
36.7
35.7
Dividend payout ratio (%)
58.4
60.0
51.7
71.1
56.1
Number of regular full‐time employees,
and average number of temporary employees in brackets
2,426
[569]
2,394
[537]
2,408
[538]
2,332
[499]
2,327
[439]
Total shareholder return
(Comparative index: Dividend‐included TOPIX) (%)
91.0
[105.8]
98.5
[118.7]
106.1
[125.5]
113.6
[154.0]
151.2
[178.0]
Highest stock price (yen)
2,496
2,813
2,558
2,648
3,896
Lowest stock price (yen)
1,783
2,123
2,083
2,116
2,414.5
(Notes) 1. Earnings per share – diluted is not presented because of no issue of potential shares.
The highest and lowest stock prices are those of the Prime Market of the Tokyo Stock Exchange from April 4, 2022, and of the First Section of the Tokyo Stock Exchange before that date.
The Company has adopted the ʺAccounting Standard for Revenue Recognitionʺ (ASBJ Statement No. 29, March 31, 2020) and relevant guidance effective as of the beginning of the fiscal year ended November 30, 2022. Accordingly, the principal management indexes pertaining to the fiscal year ended November 30, 2022 onward have been adjusted to reflect the adoption of said accounting standard and relevant guidance.
Nature of Business
The Kewpie Group (the ʺGroupʺ) consists of the Company, fifty‐four (54) consolidated subsidiaries, twenty‐seven (27) affiliated companies, and one other associated company. The Groupʹs principal businesses are manufacturing and wholesaling of food products.
The business categories of the Group and the position of the Company and these principal associated companies in the relevant businesses are summarized below.
The business categories shown below are the same categories as the reporting segments.
(As of November 30, 2024)
Business category
The Company and principal associated companies
Major handling items / services
Retail Market
Kewpie Corporation Kpack Co., Ltd.
Dispen Pak Japan Co., Inc.
Mayonnaise and dressings
Deria Foods Co., Ltd.
Shunsai Deli Co., Ltd.
Salads, delicatessen foods and others
Salad Club, Inc.
Packaged salads and others
Food Service
Kewpie Corporation
Mayonnaise and dressings
Kewpie Egg Corporation
Zen‐noh Kewpie Egg‐station Co., Ltd.
Liquid egg, egg products and others
Kewpie Jyozo Co., Ltd.
Vinegar and others
Co‐op Foods Co., Ltd.
Prepared foods
Overseas
Kewpie Corporation Hangzhou Kewpie Corporation BEIJING KEWPIE CO., LTD. Q&B FOODS, INC.
KEWPIE (THAILAND) CO., LTD.
Mayonnaise and dressings
Fruit Solutions
Aohata Corporation
Jams, fruit processed foods and others
Fine Chemicals
Kewpie Corporation
Hyaluronic acid and others
Common Business
Shiba Seisakusyo Co., Ltd.
Sale of food production equipment
The Group Business Network chart on the next page shows the relationships of the business activities of Group companies.
Aohata Corporation, a consolidated subsidiary, is listed on the Standard Market of the Tokyo Stock Exchange.
(Group Business Network)
As of November 30, 2024
Business partners
Kewp
p
Common Business
Fine Chemicals
Overseas
Food Service
Fruit Solutions
Retail Market
Outline of Associated Companies
Parent company Not applicable.
Consolidated subsidiaries
Trade name
Address
Paid‐in capital/ equity investment
Business lines
Percentage of our voting rights
Relationship with the Company
Interlocking directors
(D) or corporate auditors (A)
Finance from the Company
Operating transactions
Lease transactions
Kewpie Egg Corporation (Notes 1 & 4)
Chofu‐shi, Tokyo
350
million yen
Production and sale of liquid, frozen and processed egg
100.0
D or A Employees
1
8
None
Purchase of products and raw materials, etc.
Leases of offices and factories
Deria Foods Co., Ltd.
(Note 4)
Chofu‐shi, Tokyo
50
million yen
Sale of salads and delicatessen foods
100.0
D or A Employees
3
6
None
Sale of goods and products
Leases of offices
Kewpie Jyozo Co., Ltd.
Chofu‐shi, Tokyo
100
million yen
Production and sale of vinegar
100.0
D or A Employees
1
5
None
Purchase of products and raw materials
Leases of offices
San‐ei Provisions Co., Ltd.
Chofu‐shi, Tokyo
57
million yen
Sale of products for food service use
66.2
Employees
4
None
Sale of products and purchase of raw materials
Leases of offices
Co‐op Foods Co., Ltd.
Chofu‐shi, Tokyo
50
million yen
Production and sale of bottled, canned and retort pouch foods
100.0
Employees
3
None
Purchase of products
Leases of offices
Zen‐noh Kewpie Egg‐station Co., Ltd.
Goka‐machi, Sashima‐gun, Ibaraki
100
million yen
Production and sale of dried egg and liquid egg
100.0
D or A Employees
2
3
1,087
million yen
Purchase of raw materials
Leases of factories
Q&B FOODS, INC.
California, USA
4,800
thousand U.S.
dollars
Production and sale of condiments
100.0
(100.0)
Employees
3
None
None
None
KEWPIE AMERICAS, INC.
Delaware, USA
7.17
U.S.
dollars
Investment in and management of U.S. associates
100.0
Employees
3
None
None
None
Hashikami Kewpie Co., Ltd.
Hashikami‐cho, Sannohe‐gun, Aomori
10
million yen
Production and processing of foods; outsourced work
100.0
Employees
2
None
Consignment of production
Leases of factories
Dispen Pak Japan Co., Inc.
Minami‐Ashigara‐shi, Kanagawa
140
million yen
Production and sale of foods, subdividing and packing work
51.0
D or A Employees
1
4
None
Purchase of products
Leases of offices and factories
Shiba Seisakusyo Co., Ltd.
Kawasaki‐ku, Kawasaki‐shi, Kanagawa
20
million yen
Production of machinery and equipment
100.0
Employees
4
None
Purchase of machinery and equipment
None
Potato Delica Co., Ltd.
Azumino‐shi, Nagano
50
million yen
Production of frozen and chilled foods
100.0
(0.9)
Employees
6
1,152
million yen
Purchase of products
Leases of factories
Deft Co., Ltd.
Shibuya‐ku, Tokyo
10
million yen
Sale of condiments, frozen and processed foods
100.0
Employees
4
None
Sale of goods and products
Leases of offices
K.System Co., Ltd.
Chofu‐shi, Tokyo
50
million yen
Consigned clerical work
80.0
Employees
4
None
Consignment of clerical work
Leases of offices
Kpack Co., Ltd.
Goka‐machi, Sashima‐gun, Ibaraki
30
million yen
Production and sale of condiments
100.0
D or A Employees
1
5
None
Purchase of products
Leases of offices
Tosu Kewpie Co., Ltd.
Tosu‐shi, Saga
10
million yen
Production and processing of foods; outsourced work
100.0
Employees
2
None
Consignment of production
Leases of factories
Trade name
Address
Paid‐in capital/ equity investment
Business lines
Percentage of our voting rights
Relationship with the Company
Interlocking directors
(D) or corporate auditors (A)
Finance from the Company
Operating transactions
Lease transactions
Hangzhou Kewpie Corporation
Zhejiang Province, China
140
million yuan
Production and sale of condiments
72.0
(72.0)
Employees
6
None
None
None
Seto Delica Co., Ltd.
Seto‐shi, Aichi
30
million yen
Production and sale of delicatessen foods
100.0
(100.0)
Employees
2
592
million yen
Sale of goods and products
None
Ishikari Delica Co., Ltd.
Teine‐ku, Sapporo‐shi, Hokkaido
30
million yen
Production and sale of delicatessen foods
100.0
(100.0)
Employees
5
None
Sale of goods and products
None
Hanshin Delica Co., Ltd.
Itami‐shi, Hyogo
10
million yen
Production and sale of delicatessen foods
100.0
(100.0)
Employees
5
None
Sale of goods and products
Leases of factories
Salad Club, Inc.
Chofu‐shi, Tokyo
300
million yen
Processing and sale of fresh vegetables
51.0
D or A Employees
2
2
None
Sale of goods and products
Leases of offices and factories
BEIJING KEWPIE CO., LTD.
(Note 1)
Beijing, China
211
million yuan
Production and sale of condiments
72.0
(72.0)
Employees
6
None
None
None
Tosu Delica Co., Ltd.
Tosu‐shi, Saga
10
million yen
Production and sale of delicatessen foods
100.0
(100.0)
Employees
4
None
Sale of goods and products
Leases of factories
Kewpie Ai Co., Ltd.
Chofu‐shi, Tokyo
30
million yen
Consigned clerical work
100.0
Employees
5
20
million yen
Consignment of clerical work
Leases of offices
Kitakami Delica Co., Ltd.
Kitakami‐shi, Iwate
20
million yen
Production and sale of delicatessen foods
100.0
(100.0)
Employees
5
None
Sale of goods and products
None
K.SS Co., Ltd.
Shibuya‐ku, Tokyo
10
million yen
Planning, production and services for sales promotion
100.0
Employees
3
None
Consignment of sales
Leases of offices
KEWPIE (THAILAND) CO., LTD.
(Note 5)
Bangkok, Thailand
268
million baht
Production and sale of condiments, vinegar, salads and processed foods
45.3
D or A Employees
2
4
None
None
None
Shunsai Deli Co., Ltd.
Akishima‐shi, Tokyo
20
million yen
Production and sale of delicatessen foods
100.0
(100.0)
Employees
7
None
Sale of goods and products
Leases of factories
KEWPIE MALAYSIA SDN.BHD.
Malacca, Malaysia
57
million ringgit
Production and sale of condiments
70.0
Employees
4
None
None
None
KEWPIE VIETNAM CO., LTD.
Binh Duong, Vietnam
256.4
billion dong
Production and sale of condiments
80.0
Employees
4
None
Sale of goods and products
None
PT KEWPIE INDONESIA
(Note 1)
West Java, Indonesia
532.9
billion rupiah
Production and sale of condiments
60.0
(1.7)
Employees
3
None
None
None
Kewpie‐Egg World Trading Co., Ltd.
Chofu‐shi, Tokyo
100
million yen
Sale of egg and processed egg
100.0
(51.0)
Employees
4
None
Purchase of raw materials
Leases of offices
Green Message Co., Ltd.
Yamato‐shi, Kanagawa
100
million yen
Processing and sale of fresh vegetables
51.0
D or A Employees
1
4
475
million yen
Sale of products
None
Tou Kewpie Co., Ltd.
Shibuya‐ku, Tokyo
10
million yen
Mail‐order business
70.0
Employees
4
59
million yen
Sale of goods and products
None
Aohata Corporation (Notes 3, 5 & 6)
Takehara‐shi, Hiroshima
915
million yen
Production and sale of jams and fruit processed foods
44.7
[11.1]
None
None
Purchase of products
Leases of offices
Trade name
Address
Paid‐in capital/ equity investment
Business lines
Percentage of our voting rights
Relationship with the Company
Interlocking directors
(D) or corporate auditors (A)
Finance from the Company
Operating transactions
Lease transactions
Nantong Kewpie Corporation (Note 1)
Jiangsu Province, China
184
million yuan
Production and sale of vinegar, processed egg and salads
72.0
(72.0)
Employees
6
None
None
None
Mosso Kewpie Poland Sp. z o.o. (Note 1)
Puchały, Poland
160,300
thousand Polish zloty
Production and sale of condiments
100.0
Employees
5
Liabilities for guarantee 1,748
million yen
None
None
TO AD KEWPIE CO., LTD.
(Note 5)
Shibuya‐ku, Tokyo
4
million yen
Agency service for advertising, publicity, and exhibitions
50.0
Employees
4
None
Advertising agency services
Leases of offices
Kewpie China Corporation (Note 1)
Beijing, China
723
million yuan
Financial management and business management of the Companyʹs local subsidiaries in China
100.0
Employees
6
None
None
None
Guangzhou Kewpie Corporation (Note 1)
Guangdong Province, China
270
million yuan
Production and sale of condiments
72.0
(72.0)
Employees
6
None
None
None
Kewpie Philippines, Inc.
Manila, Philippines
50
million peso
Sale of condiments
100.0
Employees
3
Liabilities for guarantee 120
million yen
None
None
Tsukuba Egg Processing Corporation
Tsukuba‐shi, Ibaraki
100
million yen
Production and sale of processed egg
51.0
(51.0)
Employees
2
None
None
None
KEWPIE SINGAPORE PTE. LTD.
Singapore, Singapore
1 million Singapore dollars
Sale of condiments
80.0
Employees
2
None
Sale of goods and products
None
Kewpie Trading Europe B.V.
Amsterdam, the Netherlands
181
thousand Euro
Sale of condiments
100.0
Employees
3
None
Sale of products
None
KEWPIE AUSTRALIA PTY. LTD.
New South Wales, Australia
1,500
thousand Australian dollars
Sale of condiments
100.0
Employees
2
None
None
None
Equity‐method affiliates
Trade name
Address
Paid‐in capital/ equity investment
Business lines
Percentage of our voting rights
Relationship with the Company
Interlocking directors
(D) or corporate auditors (A)
Finance from the Company
Operating transactions
Lease transactions
Summit Oil Mill Co., Ltd.
Mihama‐ku, Chiba‐shi, Chiba
97
million yen
Production of vegetable oil
49.0
Employees 2
None
Sale of products and purchase of raw materials
None
Kunimi Nosankako Co., Ltd.
Kunisaki‐shi, Oita
80
million yen
Production and sale of frozen and chilled foods
20.6
Employees 2
35
million yen
Purchase of products
None
To Solutions Co., Ltd.
Chofu‐shi, Tokyo
90
million yen
Plan, development, sale, maintenance and operations support of computer systems
20.0
Employees 2
None
Consignment of calculation work, etc.
Leases of offices and rental of office equipment
K.R.S. Corporation (Note 3)
Chofu‐shi, Tokyo
4,063
million yen
Warehousing and transportation
43.6
(0.3)
D or A1
None
Consignment of storage and transportation of products and raw materials of Group companies
Leases of offices, land and warehouses
S.Y. PROMOTION
Co., Ltd. (Note 7)
Koto‐ku, Tokyo
200
million yen
Transportation
37.4
Employee 1
None
Consignment of transportation services
None
K. Tis Corporation (Note 7)
Chofu‐shi, Tokyo
82
million yen
Warehousing and transportation
—
None
None
None
None
Kewso Services Corporation (Note 7)
Chofu‐shi, Tokyo
30
million yen
Sale of equipment for cars
—
None
None
Rental of cars for factories
Rental of cars for factories
San‐ei Logistics Corporation (Note 7)
Akishima‐shi, Tokyo
38
million yen
Transportation
—
None
None
None
None
AXIA‐Logi Corporation (Note 7)
Hirakata‐shi, Osaka
66
million yen
Transportation
—
None
None
None
None
San Family Corporation (Note 7)
Misato‐shi, Saitama
99
million yen
Transportation
—
None
None
None
None
KAT Corporation (Note 7)
Hirakata‐shi, Osaka
20
million yen
Transportation
—
None
None
None
None
Fresh Delica Network Corporation (Note 7)
Fuchu‐shi, Tokyo
20
million yen
Transportation
49.0
(49.0)
Employees 2
None
None
Leases of parking lots
KSK Corporation (Note 7)
Utazu‐cho, Ayauta‐gun, Kagawa
20
million yen
Transportation
—
None
None
None
None
PT Kiat Ananda Cold Storage (Note 7)
West Java, Indonesia
21.4
billion rupiah
Warehousing
—
None
None
None
None
PT Ananda Solusindo (Note 7)
West Java, Indonesia
185.7
billion rupiah
Warehousing
—
None
None
None
None
PT Manggala Kiat Ananda (Note 7)
Jakarta, Indonesia
98.8
billion rupiah
Transportation
—
None
None
None
None
PT Trans Kontainer Solusindo (Note 7)
West Java, Indonesia
15
billion rupiah
Ship transportation
—
None
None
None
None
(Notes) 1. Kewpie Egg Corporation, BEIJING KEWPIE CO., LTD., PT KEWPIE INDONESIA, Nantong Kewpie Corporation, Mosso Kewpie Poland Sp. z o.o., Kewpie China Corporation, and Guangzhou Kewpie Corporation are classified under Japanese tax law as tokutei kogaisha, a special category of subsidiary.
The figures in parentheses under ʺPercentage of our voting rightsʺ indicate the proportion of indirect ownership and are included in the respective figures above.
The companies file their own annual securities report to the Commissioner of the Financial Services Agency.
Net sales of Kewpie Egg Corporation (excluding sales from intra‐group transactions) exceed 10% of the Companyʹs consolidated net sales.
Major profit/loss information:
(1)
Net sales
¥106,950 million
(2)
Ordinary income
¥5,334 million
(3)
Profit
¥3,335 million
(4)
Total net assets
¥40,628 million
(5)
Total assets
¥58,964 million
Net sales of Deria Foods Co., Ltd. (excluding sales from intra‐group transactions) exceed 10% of the Companyʹs consolidated net sales.
Major profit/loss information:
(1)
Net sales
¥64,970 million
(2)
Ordinary income
¥2,628 million
(3)
Profit
¥2,115 million
(4)
Total net assets
¥7,340 million
(5)
Total assets
¥19,408 million
KEWPIE (THAILAND) CO., LTD., Aohata Corporation and TO AD KEWPIE CO., LTD. are treated as subsidiaries, even though the voting rights held by the Company as a percentage of total voting rights are 50% or less, in view of the substantial control exerted over their management.
In the ʺPercentage of our voting rightsʺ column, the figures shown in square brackets indicate the percentage of voting rights of closely related persons or persons whose consents are obtained, which are excluded from the respective figures above.
The companies are consolidated subsidiaries of KRS.
Other associated company
Trade name
Address
Paid‐in capital/ equity investment
Business lines
Percentage of their voting rights (Note)
Relationship with the Company
Interlocking directors
(D) or corporate auditors (A)
Finance from the Company
Operating transactions
Lease transactions
NAKASHIMATO CO., LTD.
Shibuya‐ku, Tokyo
50
million yen
Sale of various processed foods
16.1
(8.0)
D or A2
None
Purchase of products, etc.
Leases of offices
(Note) The figure in parentheses under ʺPercentage of their voting rightsʺ indicates the proportion of indirect ownership and is included in the respective figure above.
Employees
The Company and its consolidated subsidiaries
(As of November 30, 2024)
Segment
Number of employees
Retail Market
2,432
(2,806)
Food Service
3,270
(1,089)
Overseas
3,555
(79)
Fruit Solutions
438
(180)
Fine Chemicals
256
(63)
Common Business
333
(79)
Company‐wide
233
(17)
Total
10,517
(4,313)
(Notes) 1. The employee figure indicates registered regular employees and long‐term special contract employees, excluding the Group employees dispatched outside the Group but including workers from outside employed within the Group on dispatch. The figure in parentheses indicates the annual average number of short‐term contract non‐regular employees and workers hired on a daily, weekly or seasonal basis, and is excluded from the figure above.
The Company‐wide employee figure indicates the number of the employees belonging to administration divisions of the Company that cannot be categorized by specific segments.
The labor union
Formed on July 14, 1962, the Kewpie labor union is the main labor union of the Group.
The labor‐management relations are stable and there are no matters that should be reported.
Proportions of female workers in management positions, percentages of male workers taking childcare leave, and differences in wages between male and female workers
Proportions of female workers in management positions
(Current fiscal year)
Trade name
Proportions of female workers in management positions
Kewpie Corporation (the Company)
15.9%
Kewpie Egg Corporation
4.8%
Hashikami Kewpie Co., Ltd.
8.3%
Hanshin Delica Co., Ltd.
7.1%
Salad Club, Inc.
3.3%
Shunsai Deli Co., Ltd.
2.9%
Aohata Corporation
7.7%
(Notes) 1. The figures were calculated in accordance with the provisions of the ʺAct on the Promotion of Womenʹs Active Engagement in Professional Lifeʺ (Act No. 64 of 2015).
2. The aggregation is based on workers in each company, and workers seconded to other companies were included as employees of the company to which they were seconded.
Percentages of male workers taking childcare leave
(Current fiscal year)
Trade name
Percentages of male workers taking childcare leave
Kewpie Corporation (the Company)
88.5%
Kewpie Egg Corporation
127.3%
(Notes) 1. The figures were proportions of workers taking child care leave, etc. in the Article 71‐4 Item 1 of the ʺOrdinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Membersʺ (Ordinance of the Ministry of Labor No. 25 of 1991) calculated in accordance with the provisions of the ʺAct on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Membersʺ (Act No. 76 of 1991).
The aggregation is based on workers in each company, and workers seconded to other companies were included as employees of the company to which they were seconded.
The percentages of workers taking childcare leave may exceed 100% due to the gap between the fiscal year of a childʹs birth and the fiscal year in which childcare leave, etc. for that child began.
Differences in wages between male and female workers
(Current fiscal year)
Trade name
Permanent workers
Non‐permanent workers
Total workers
Kewpie Corporation (the Company)
61.5%
72.5%
59.1%
Kewpie Egg Corporation
69.5%
78.0%
65.6%
Hashikami Kewpie Co., Ltd.
80.5%
84.4%
67.6%
Hanshin Delica Co., Ltd.
80.4%
82.1%
60.8%
Salad Club, Inc.
78.0%
89.7%
74.8%
Shunsai Deli Co., Ltd.
72.5%
77.9%
57.3%
Aohata Corporation
64.5%
71.9%
56.0%
(Notes) 1. The figures were calculated in accordance with the provisions of the ʺAct on the Promotion of Womenʹs Active Engagement in Professional Lifeʺ (Act No. 64 of 2015).
The aggregation is based on those who belong to each company, and workers seconded to other companies were included as employees of the company from which they were seconded.
There is no difference in wages between men and women doing the same work and on the same grade. There are differences in wages due to proportions in management positions for permanent workers and due to a high proportion of women as non‐permanent workers amongst the total workers.
Business Operations
Management Policy, Business Environment, Tasks Ahead, Etc.
The following outlines the Groupʹs management policy, business environment, tasks ahead, etc.
Forward-looking statements included in this section are based on the Groupʹs judgment of information available as of the end of the current fiscal year.
Basic policy of Company management
The Group is a corporate group that focuses on the field of food, which is essential to peopleʹs lives. While cherishing the corporate motto and principles that have been passed down since our establishment, we aim to contribute to the food culture and health of the world through ʺgreat taste, empathy, and uniquenessʺ.
Based on our 2030 Vision, which outlines our ideals for 2030, and our Medium-term Business Plan, which details our growth and development strategies, we will continue to expand our wide range of business activities. We will deliver unique products and services that are characteristic of the Group, and actively work to resolve social issues.
Medium- to long-term business strategies, business environment, tasks ahead, etc. [Medium-Term Business Plan]
The Group aims to contribute to the food culture and health of the world through ʺgreat taste,
empathy, and uniquenessʺ and has established the ʺKewpie Group 2030 Visionʺ as its long-term vision.
Under our FY2025–FY2028 Medium-term Business Plan, we will work on the theme of ʺ—Change & Challenge—Improving management efficiency in mature markets and accelerating investment in growth areasʺ. Along with ʺStructural reform of domestic businessʺ and ʺAcceleration of global expansionʺ, the Group will promote ʺContributing to food culture and healthʺ, ʺConsideration for the environmentʺ, and ʺEnhancing the value of human capitalʺ, thereby creating both social and economic value and contributing to customers around the world.
[FY2025–FY2028 Medium-Term Business Plan — Key Indicators]
In the FY2025–FY2028 Medium-term Business Plan, the Group selected ʺROEʺ, ʺDomestic business income ratioʺ, and ʺOverseas sales CAGRʺ as its key indicators of economic value, and while focusing on capital efficiency, the Group will enhance earning power for both the domestic and global businesses. The Group will also strive to achieve the management targets of ʺNumber of salads eatenʺ, ʺPlastic reductionʺ, ʺReduction of food lossʺ and ʺEmployee engagementʺ, treating these as indicators of social value.
[FY2025–FY2028 Medium-Term Business Plan — Cash Allocation]
As for cash allocation, the Group is targeting a cumulative amount of approximately ¥170.0 billion in operating cash flow for the four-year period. The Group also plans to conduct asset sales and fundraising during this period and aggressively allocate such funds to investments. The Group plans to allocate approximately ¥100.0 billion for capital investments. Moreover, as part of our targets for shareholder returns, the Group has set a minimum dividend payment of ¥54 and will gradually increase the amount during the planʹs period. Also, the Group has set ʺat least 50%ʺ as a standard for the cumulative four-year total return ratio. Furthermore, the Group plans to strengthen shareholder returns by including flexible share buybacks to achieve further growth investment and improve capital efficiency.
Sustainability Approach and Initiatives
The following outlines the Groupʹs sustainability approach and initiatives.
Forward-looking statements included in this section are based on the Groupʹs judgment of information available as of the end of the current fiscal year.
Sustainability in general
The Group aims to continue helping create a better society by contributing to food culture and health of the world through great taste, empathy, and uniqueness. We recognize sustainability initiatives as important activities and help realize a sustainable society through the practice of our Corporate Philosophy and Group Policies, and implement our initiatives as a foundation for the sustainable growth of the Group, based on the ʺKewpie Group Basic Policy on Sustainabilityʺ.
Basic Policy on Sustainability
With an emphasis on the aspiration for ʺlove around the kitchen tableʺ, we aim to address and resolve various issues through ʺgreat taste, empathy and uniquenessʺ. We will create a future full of smiles by caring for people and the environment throughout the value chain, from product design and raw material procurement, to production, sales and consumption.
Contributing to Food Culture and Health
Focusing on salads and eggs as key components of dietary habits, we contribute to extending the healthy life expectancy of people around the world through the pursuit and global promotion of nutrition and health benefits.
Through food, we support the mental and physical health of children who will create the future.
Effective Use and Recycling of Resources
As the only manufacturer in the world that makes effective use of the entire egg, we will continue to refine our technologies and create value.
In proposing ways of eating and utilizing uneaten portions, we aim to become a globally unique
ʺvegetable utilization manufacturerʺ.
To realize a recycling-oriented society in plastics, we will promote environmentally friendly product design and collaboration with external parties.
Recognizing that water is a limited and precious resource, we will use it efficiently and reduce the environmental impact of water intake and discharge.
We will develop extensive technologies matching demand information with production, transportation and delivery data information to eliminate food loss.
Deal with Climate Change
We aim to reduce CO2emissions throughout the value chain, from the procurement of raw materials to product consumption.
Conservation of Biodiversity
We will strive to minimize negative impacts on biodiversity and restore and regenerate ecosystems.
Sustainable Procurement
In addition to safety, we will collaborate with business partners to promote stable procurement that takes into consideration environmental impacts and human rights.
Respect for Human Rights
We promote employee diversity and inclusion, protecting the human rights of everyone involved in our business.
Governance
The Sustainability Committee formulates policies and plans to achieve targets, as well as identifies important matters and promotes initiatives to address material issues, with authority delegated by the Management Committee (an advisory body to the Representative Director, President and Chief Executive Corporate Officer). The Sustainability Committee submits reports to the Board of Directors, and the Board of Directors discusses on the content of the Sustainability Committeeʹs deliberations as appropriate, thereby ensuring supervision by the Board of Directors. In FY2024, the progress of our decarbonization efforts was reported at the meetings of the Board of Directors, and opinions were exchanged about future initiatives. In addition, the Sustainability Committee had four meetings to discuss the formulation of sustainability-related policies and plans including climate change initiatives, identification of important matters, and promotion of initiatives on material issues.
Sustainability Promotion System
Meeting bodies, other structures
Roles and responsibilities
Meetings held in FY2024
Board of Directors
Deliberation upon the Groupʹs overall policy and most important matters, and supervision of sustainability-related issues (in general), including climate change
1/12 total
Sustainability Committee
Formulation of sustainability-related policies and plans including climate change initiatives, identification of important matters, and promotion of initiatives on material issues
4 total
Chairperson of the Sustainability Committee
Director and Executive Corporate Officer in Charge of Corporate
—
Strategy
Using backcasting from 2030 and considering our aims to realize the ʺKewpie Group 2030 Visionʺ and contribute to SDGs, the Group has identified the following material issues for sustainability.
Contributing to food culture and health
Effective use and recycling of resources
Deal with climate change
Conservation of biodiversity
Sustainable procurement
Respect for human rights
We believe that these issues are important to both contribute to the realization of a sustainable society and achieve sustainable growth for the Group. We will periodically review our material issues in response to changes in the social and global environment.
We have also established sustainability targets that align with index material issues in accordance with the Kewpie Group Basic Policy on Sustainability, and we are actively carrying out efforts to achieve them.
Contributing to food culture and health
In light of recent social changes, there is a growing awareness of health issues around the world. We believe that we can respond to this shift in awareness and create opportunities by promoting ʺContribution to extending healthy life expectancyʺ and ʺMental and physical health support for childrenʺ.
To maintain healthy dietary lifestyles throughout life, it is essential to integrate three key aspects in a well-balanced manner: nutrition, physical activity, and social participation. With respect to nutrition in particular, the Group advocates for tasty and well-balanced dietary lifestyles to address health issues with salads and eggs.
We also conduct various dietary educational activities such as lecture events, Mayonnaise Classes, Open Kitchen factory tours, and SDGs classes. We also launched a website, Food & Life Academy, with the purpose of helping children develop skills to learn, think, and make decisions independently about their dietary lifestyles.
Effective use and recycling of resources
In these days of food crisis and other risks, we believe that it is our crucial responsibility as a food manufacturer to make effective use of limited food resources and natural energy and avoid waste. In particular, we are actively engaged in initiatives such as elimination and effective utilization of food loss, reduction and reuse of plastic emissions, and sustainable use of water resources.
To ensure elimination and effective utilization of food loss, eggs are utilized 100% effectively. Egg yolks and egg whites serve as raw materials for products and food ingredients. Eggshells are also put to effective use in soil improvement agents and additives for calcium-enriched foods, while eggshell membranes find application in cosmetic products.
We have successfully converted unused portions of leafy vegetables (such as cabbage and lettuce residues) into stock feed for dairy cattle. In a joint research project between Kewpie Corporation and Tokyo University of Agriculture and Technology, it was reported that dairy cattle that were fed this feed produced greater yields of milk. Meanwhile, Salad Club Co., Ltd., a subsidiary that manufactures and sells packaged salads, also takes the unused parts of vegetables such as outer leaves and cores generated when producing packaged salads at its seven directly operated plants and turns them into feed and compost to be utilized by contracted farms and other customers. This approach ensures that all residues are reconverted into resources.
In terms of plastics used in our products, as part of our initiative to reduce and reuse plastic emissions, we are advancing efforts to decrease the use of petroleum-derived plastics by reducing container weight and using recycled plastics. We are also working with other companies to establish a recycling system for PET bottles with oil on them and mayonnaise bottles. This fiscal year, we conducted a bottle collection pilot test in collaboration with major retailers to establish and verify the technology.
With regard to sustainable use of water resources, we consider water a vital and limited resource that is indispensable to the continuation of our business, so we ensure its effective use and reduce the environmental impact when collecting and discarding water.
Deal with climate change
We disclose information on the risks and opportunities associated with climate change in accordance with the TCFD framework, as described in ʺ(2) Initiatives for the Task Force on Climate-related Financial Disclosures (TCFD)ʺ below. We believe it is critical to actively work for energy conservation and a shift to renewable energy sources across the entire value chain from procurement of raw materials to consumption, in order to reduce CO2emissions, a cause of climate change.
The Group is steadily installing renewable energy sources at its locations in Japan and abroad. We are also promoting the ʺvisualization of energy useʺ by installing energy measurement devices in all processes at production sites, improving facility operation and thorough maintenance, and introducing energy-saving equipment to promote energy conservation. In addition, we are working to improve efficiency by shortening transportation and delivery distances and by improving load efficiency. We also implement eco-friendly driving, which consumes less fuel and offers greater safety. Furthermore, we are promoting a modal shift from long-distance truck transportation to rail and ship to reduce CO2emissions.
Conservation of biodiversity
The business operations of the Group are closely tied to an abundant natural environment. Upholding the spirit of ʺgood products begin with good ingredientsʺ, we are thankful for natureʹs blessings, and we endeavor to preserve a natural environment that is bountiful and biologically diverse based on the Biodiversity Policy.
In April 2024, the Group endorsed the Taskforce on Nature-related Financial Disclosures (TNFD) and joined the TNFD Forum. While working to address issues, we have also launched a project to discover new opportunities and embed them into our corporate strategies. Applying the LEAP approach of the TNFD framework, we will analyze the major raw materials needed by the Group as well as direct operations (production sites).
TNFD Report
URL https://www.kewpie.com/en/sustainability/pdf/sustainability_20250116_tnfd.pdf
Sustainable procurement
We recognize the need to consider the impact of our products on the environment and human rights not only in the Company but also throughout our supply chain. Efforts to minimize the impact in procurement are particularly important. Since the establishment of the Kewpie Group Fundamental Policy for Sustainable Procurement in 2018, we have been promoting procurement practices that take into account environmental and human rights
considerations. Having established the Supplier Guidelines, we collaborate with our suppliers to ensure stable procurement. This involves addressing supply chain issues related to safety, environmental concerns, and human rights based on mutual understanding. We also conducted a questionnaire survey of our main business partners to make sure that they are acting in accordance with the Supplier Guidelines. We are strengthening our cooperation with suppliers by holding individual interviews to understand more details as necessary based on the survey responses.
Respect for human rights
We recognize that all aspects of our business activities may, directly or indirectly, affect human rights, and we are committed to respecting the human rights of all the people involved in our business. To respect the human rights of all the people involved in our business, we have established the Kewpie Group Human Rights Policy. We have also identified risks that have been determined to be particularly material by external experts based on international standards on human rights and information obtained through interviews. The human rights risks identified are addressed by the Sustainability Committee, and actions are planned and implemented in cooperation with the relevant committees and departments. We have also established a helpline for reporting and consultation within our internal control system to detect violations and take corrective actions. If there is a violation, we implement remediation to prevent recurrence after consultation with the department concerned.
The Groupʹs critical human rights risks that require particular attention and measures to prevent and mitigate them
Risks
Scope
The Groupʹs response & relevant URL
Our own employees
Tier 1 suppliers
Raw material producers
Customers & consumers
Occupational Health and Safety
○
○
https://www.kewpie.com/en/sus tainability/human-rights/healthcare-management/#sec02
Forced or Compulsory Labor
○
○
○
https://www.kewpie.com/en/sus tainability/human-rights/initiatives/
Child Labor
○
○
○
Same as above
Harassment
○
○
Same as above
Long Working Hours and Overwork
○
Routine time management Awareness raising and education
Infringement of Health and Safety Due to Product Defects
○
https://www.kewpie.com/en/qs/ manufacture/
Risk management
We identify potential risks and opportunities by broadly examining changes in the internal or external business environment and assess them to determine material risks and opportunities. We assess each potential risk along two axes, degree of effect on management and degree of
management control, and select and prioritize the risks to be addressed on that basis. We endeavor to mitigate risks over which management control is insufficient despite having a significant effect on management, which are designated as main company-wide risks, through company-wide projects implemented on a priority basis. When the effect on management remains high despite countermeasures having an effect and the degree of management control increasing through our activities, we confirm the status of subsequent countermeasures through audits and other means. Even for risks that have a small effect on management and are not considered to be management issues, we collect external information with high sensitivity and endeavor to monitor the situation. In doing so, we monitor risks from both internal and external aspects, assess the severity of risks in response to changing conditions in a timely fashion, and strive to face risks in an agile manner.
The Group recognizes events with the potential to affect the continued and stable development of management as risks, and strives to enhance internal controls through the practice of risk management. Each department in charge continuously monitors individual risks, while the Risk Management Committee shares information related to risk factors that affect the Company as a whole to comprehensively manage the evaluation and prioritization of such risks, and formulate countermeasures. Specifically, we have positioned the following eight items as major risks and are working to manage and avoid them.
Eight Major Risks
(i) Market trend (ii) Product liability (iii) System fault (iv) Overseas expansion
(v) Procurement of principal ingredients (vi) Natural disasters and other such contingencies
(vii) Human resources and labor-related (viii) Global environmental issues, climate changes The corporate officer in charge of risk management regularly reports Company-wide risk
assessments and risk response policies and status to the Board of Directors.
Indicators and targets
The Group has established sustainability targets for each theme of focus that the Group as a whole will address, tied to material issues for sustainability. All our employees are committed to
achieving our goals by maintaining an awareness of sustainability, practicing Group Philosophy, and enacting Group Policies.
Sustainability targets
https://www.kewpie.com/en/sustainability/management/materiality/
Initiatives for the Task Force on Climate-related Financial Disclosures (TCFD)
The Group endorses the Task Force on Climate-related Financial Disclosures (TCFD) and has joined the TCFD Consortium, which serves as a forum for collaborations among companies and financial institutions that support TCFD.
Internally, the Group created the TCFD Project and has engaged in its own initiatives since 2021.
Governance
Governance for climate change is in accordance with 1) Governance. As an additional note, we have introduced internal carbon pricing (ICP) to strengthen the assessment and management of climate change-related risks and opportunities. The Sustainability Committee examines and approves the settings and revisions of ICP. The details are reported to the Board of Directors as appropriate and are deliberated as necessary, to ensure proper supervision by the Board of Directors.
Strategy
The Group identifies the various risks and opportunities associated with climate change in a short-, medium-, and long-term perspectives, according to their significance. We also periodically review our analysis and evaluation in light of changes in the external environment. For our analysis, we have identified two key scenarios in line with the scenarios published by Intergovernmental Panel on Climate Change (IPCC)*1 and International Energy Agency (IEA)*2. In the first scenario, the temperature will rise 1.5–2 degrees Celsius above pre-industrial levels by 2100, and environmental policies are developed (hereinafter referred to as the
ʺEnvironmental Policy Progress Scenarioʺ). In the second scenario, the temperature will rise
2.7–4 degrees Celsius above pre-industrial levels by 2100 and no additional measures are taken to address climate change (hereinafter referred to as the ʺBAU Scenarioʺ). In the Contingency Scenario, the impact of climate change on our business in 2030 is calculated. We consider measures to deal with the risks and opportunities identified, incorporate them into our single-year plans and Medium-term Business Plans, and promote them.
*1 IPCC
The Intergovernmental Panel on Climate Change (IPCC) is an intergovernmental organization established in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP). It provides the scientific data needed for governmentsʹ climate change policies.
*2 IEA
The International Energy Agency (IEA) is an autonomous organization established in 1974 after the first oil crisis within the framework of the Organization for Economic Cooperation and Development (OECD). It provides the medium- and long-term supply and demand forecasts needed for crafting energy policy.
Applying scenario analysis
We will gradually expand the scope of the analysis in the Medium-term Business Plan. Our analysis plan is outlined below.
Fiscal Year
Scope
FY2021
Mayonnaise, sesame dressing
FY2022
Mayonnaise, dressings, eggs (liquid eggs, processed products)
FY2023
Mayonnaise, dressings, eggs, packaged salads (cabbage, lettuce)
FY2024
Mayonnaise, dressings, eggs, packaged salads, delicatessen foods (potato, carrot, onion)
In FY2024, we analyzed the climate change risks and opportunities in delicatessen foods (potatoes, carrots, and onions). Most notably, in terms of the main raw materials of these products (oil, egg, and vinegar), we recognized that crops, mainly grains, cabbage, lettuce, potatoes, carrots, and onions are affected by climate change. Thus, we are considering a strategy to reduce dependence on specific crops over the medium to long term.
Major climate change risks and opportunities
Strict environmental regulations and high carbon taxes will be introduced, and the world will achieve carbon neutrality. The agriculture, forestry, and fishery sectors will achieve zero CO2emissions, while suppliersʹ environmental response costs will rise. Consumers will become more health-conscious and will thus increase their intake of salads and other vegetables. In addition, the demand for more sustainable products will increase due to heightened environmental awareness. The risks and opportunities for the Group identified in the Environmental Policy Progress Scenario are as follows.
Risk items
Risks
Opportunities
Time*3
Impacts
Primary categories
Medium categories
Sub-categories
Transition risks
Policy and legal
Introduction of carbon taxes
○
Medium-term
Medium
Regulation of plastics and packaging
○
Medium-term
Small
Valorization of unused resources
○
Medium-term
Medium
Market
Increased demand for highly sustainable products
○
Medium-term
Large
Increase in the procurement costs of environmentally friendly raw materials
○
Medium-term
Small
*3 Definition of timelines: Short-term: up to 2024; Medium-term: up to 2030; and Long-term: up to 2050
Despite the progress of low-carbonization initiatives, carbon neutrality will not be achieved by 2050 and temperature rise will increase the frequency and severity of natural disasters. Consequently, the frequency of flooding damage at suppliersʹ and companiesʹ production sites will increase. Lower crop yields caused by heat stress will also lead to a rise in the cost of procuring raw materials. On the other hand, the demand for immune-related businesses and other services will grow with increasing temperatures. The risks and opportunities for the Group identified in the BAU Scenario are as follows.
Risk items
Risks
Opportunities
Time*3
Impacts
Primary categories
Medium categories
Sub-categories
Physical risks
Chronic
Increased cost of procuring raw materials due to reduced crop yields caused by heat stress
○
Medium-term
Medium
Acute
Damage to production facilities, power outages, and stagnation or suspension of operations due to flooding
○
Short-and longterm
Small to large
Products and services
Increased demand for new products or businesses due to rising temperatures
○
Medium-term
Large
*3 Definition of timelines: Short-term: up to 2024; Medium-term: up to 2030; and Long-term: up to 2050
Measures to address climate change risks and opportunities (● Preparing for risks; ○ Taking advantage of opportunities)
In response to the risks and opportunities identified through scenario analysis, we will promote the following themes/measures and utilize them to achieve sustainable growth.
Respond to markets where environmental policies have progressed
Respond to increased demand for environmentally friendly products
Technological innovation to exploit agricultural products (vegetable oil) and other products
Conversion to a structure that is resilient to shifts in raw material markets
Weight reduction of container and packaging plastics
Use recycled plastics
Active introduction of recycled plastics and biomass plastics
Reduce environmental impact by proposing ways to use products
Reduction and effective use of food loss
Effective use of unused parts of vegetables (conversion to feed and fertilizer)
Increasing concern about infectious diseases caused by climate change
Expansion of acetic acid bacteria business
Reduction of CO2emissions
Promotion of investments in low-carbon projects with the use of internal carbon pricing (ICP)
Capital investment using an indicator to achieve CO2emissions reduction (promotion of electrification, introduction of internal carbon pricing (ICP), etc.)
Review of heating and sterilization processes in the manufacturing process
Introduction and utilization of renewable energy, collaboration with suppliers
Flood preparedness
Focused measures according to flood risk assessment
Business Continuity Plan (BCP) for main products in case of disaster
Utilization of internal carbon pricing (ICP)
We have introduced ICP to evaluate climate change risks from a financial perspective and to promote investments in low-carbon projects. ICP is being used mainly for the following purposes:
Consider carbon emission costs in capital investment decision making
Promote investment in low-carbon technologies
Raise awareness of climate change risks within the Company
We started to use an internal carbon price in FY2022, based on which we are formulating an environmental investment plan through to 2028. In the past, some investments in low-carbon projects struggled to get approved internally due to low returns on investment. However, with the introduction of an internal carbon price, we can demonstrate the total return on investment, including the Groupʹs decarbonization itself, which we expect will accelerate our efforts toward decarbonization. Recently, investments in the installation of solar panels and other projects were decided based on the return on investment using the internal carbon price.
Below is a summary of the main initiatives in FY2024 related to the above measures.
Measure
Initiative
In early February, we started to add our original eco-label to products with environmentally friendly packaging, including dressings and soup bases.
Summary
We have established environmentally friendly standards on container packaging, and products that meet these standards will be packaged with the Groupʹs original eco-label.
Details Eco Label Criteria
Reduced plastic usage Reduced amount of plastic used by 5% or more
(using 2018 as the base year)
Recycled plastic Recycled plastic materials comprise 25% or more of total plastic by weight
Biomass plastic Biomass plastic comprises 10% or more of plastic used, by weight
Respond to markets where environmental policies have progressed
Measure
Initiatives
Summary
There is concern that PET bottles with oil on them may be left with oil during the recycling washing process, affecting the quality of recycled PET. The recycling system has not been implemented in society. In addition, mayonnaise bottles in Japan are mainly made of polyethylene (PE), a plastic material that is widely used for food packaging, but because PE is often combined with other materials and types of materials, a horizontal recycling system similar to that used for PET beverage bottles has not been implemented in society.
By working together to address these issues beyond the boundaries of the corporate sector, we aim to create a society in which such bottles can be recycled as a resource. This fiscal year, in order to establish and verify the technology, we conducted a bottle collection pilot test at retail stores for the efficient collection of samples.
Use recycled plastics
Establishing a recycling system of PET bottles with oil on them (dressing bottles, etc.)
Establishing a recycling system for mayonnaise bottles
Risk management
For details of risk management for climate change, please refer to ʺII. Business Operations, 2. Sustainability Approach and Initiatives, (1) Sustainability in general, 3) Risk managementʺ.
Indicators and targets
For details of indicators used for assessing and managing risks and opportunities posed by climate change, please refer to ʺII. Business Operations, 2. Sustainability Approach and Initiatives,
(1) Sustainability in general, 4) Indicators and targetsʺ.
Human capital
Human resource development policy
The Group operates its business in a wide range of areas across the globe. To prepare for future shifts in the market environment and to expand our growth areas, we recognize the need for more diverse human resources with various skills and experiences. The Group has set
ʺDeveloping a framework for empowering a diverse range of talentʺ as a key theme in the Medium-term Business Plan in order to foster motivated human resources who will be able to play active roles in our sustainable growth. We create opportunities to understand diversity, equity and inclusion, create opportunities for diverse employees to play an active role, and create career and learning mechanisms that give employees a sense of self-growth. Through all of these
efforts, we work to create a corporate culture that supports each employeeʹs individuality and motivation to grow, and in which individuals can fully demonstrate their abilities.
The strengths that support the Groupʹs sustainable growth lie in each and every employee who shares the philosophy we have carefully nurtured, together with our corporate culture centered on originality and ingenuity. Under the next Medium-term Business Plan, which begins in FY2025, we will actively invest in human capital to further increase its value.
We will enhance human capital from three perspectives: generating opportunities for new success, strengthening diverse individual capabilities, and enhancing the human resource system. Through these initiatives, we aim to improve employee engagement and produce the best performance. With employeesʹ satisfying worklife and the challenges toward self-fulfillment through work as a driving force for sustainable growth, we will improve productivity and create new value.
Development of and initiatives for the working environment
Creating opportunities for understanding diversity and inclusion
Active dialogue and provision of opportunities
We have developed the KEEP20 initiative within the Group, in which 20% of the participants of important meetings, including the Management Committee, are made up of diverse human resources (in terms of age, gender, skills, and careers). The goal is to stimulate discussion and foster innovation by drawing out different perspectives. For both traditional participants and newcomers, it is an opportunity to gain new insights and knowledge.
Diversity and engagement perception survey
Since 2017, we have conducted the diversity questionnaire among Group employees to assess their perceptions of diversity, fairness, and acceptance. The results are steadily improving, and in FY2024, more than 95% of employees responded that they empathize with the promotion of diversity. We also plan to position the engagement survey as an indicator to measure the effect of investment in human capital in the Medium-term Business Plan that starts from FY2025, and work to improve the score. The survey results will be analyzed in four categories: ʺenvironment in which they workʺ, ʺsense of contribution and acceptance at workʺ, ʺsignificance of and motivation for working at their workplaceʺ, and ʺsense of growth in the workplaceʺ. The analysis results, together with the results of the above diversity questionnaire, will be shared openly within the Group and used to foster an environment that empowers the diverse human resources within the Group.
Engagement Score*1: Targets and Results
FY2024 Results
FY2028 Target
Engagement score (The Group in Japan*2)
69 pts
75 pts
*1 The engagement score is based on an employee survey conducted on their views of the work environment, sense of contribution, significance for working, and sense of growth. The survey results are then analyzed by a third-party organization to calculate the score on a scale of 100 points.
*2 Starting with the next Medium-term Business Plan, we will expand the scope to include the entire Group, including overseas.
Creating opportunities for diverse employees to play active roles
Providing opportunities to take on challenges
In allocating human resources to areas that the Group has positioned as priority strategies, such as overseas and DX, we have implemented an in-house recruiting system for all Group employees. We are actively advancing our efforts to identify and recruit highly motivated employees who are committed to achieving their career aspirations. In 2024, we implemented a selective overseas human resources development program for employees who wish to take on the challenge of overseas business. We are working to create opportunities for training and learning for overseas postings.
We also continue to promote the Kewpie Startup Program, an in-house initiative to create new business plans, which we have been conducting since 2012. In FY2024, we invited lecturers from outside the Company to hold workshops on ideation and development of a business creation mindset. From FY2025 onward, we will call for business ideas that create social and economic value based on the three domains that the Group will focus on even further in the future, ʺsaladʺ, ʺwellnessʺ, and ʺsustainabilityʺ, to realize individual employeesʹ ideas and create new businesses.
Supporting the advancement of female employees
To ensure that female employees, who account for approximately half of the Groupʹs workforce, can fully participate in the business, we promote the development of female career-track positions, the introduction of a career-track system that does not require relocation, the conversion of regional positions to career-track positions, and the provision of support for training newly-appointed managers at study sessions for female managers. In addition to personnel and labor systems, we aim to become a company where motivated female employees and those in dual-income families can continue to work and find success with peace of mind by changing the Companyʹs management and culture.
Ratio of Female Managers: Targets and Results
FY2022
Results
FY2023
Results
FY2024
Results
FY2025
Target
FY2030
Target
Ratio of female managers (Kewpie only*)
12.5%
14.5%
15.9%
18%
30%
(Reference: Including the Group overseas)
17.5%
19.5%
20.3%
23%
30%
* Starting with the next Medium-term Business Plan, we will expand the scope to include the entire Group, including overseas, and set its target for the ratio of female managers.
Creating career and learning mechanisms that give employees a sense of self-growth
Supporting employeesʹ self-realization
We have implemented the Career Self-Declaration Scheme to empower employees with greater career autonomy. Leveraging the diverse business domains within the Group, we are fostering an environment where employees can achieve self-realization through their work. Specifically, we are actively working a quantitative improvement in the rate of self-declaration by creating