I would like to take this opportunity to express my sincere gratitude and appreciation to our investors for your support.
We at the Oenon Group are guided by our Corporate Group Philosophy in conducting our biotechnology-based business, which focuses on fermentation and other technologies. We place topmost importance on delivering safe and secure products to our customers, maintaining a combined customer- and profit-oriented focus throughout our operations. We also work to maximize the Group’s corporate value and quality of management through cocreation of future value.
During fiscal 2018, ending December 31, 2018, we will actively pursue innovation in the Group by practicing the sangen shugi principle (genba, genjitsu, genbutsu). This idea, the “three reals philosophy,” is sometimes expressed in English as “the actual place, the actual situation and the actual goods.” Furthermore, we will continue to address the substantial changes occurring in our operating environment by following a cycle based on three principles—decide swiftly, act nimbly and engage in honest reflection—as we conduct management with a sense of speed.
In our core alcoholic beverages segment, we will make products available for purchase nearby and launch attractive new products by taking a customer-oriented approach, thereby maximizing customer satisfaction and our profits.
Last year marked the 25th anniversary of the launch of Tantakatan, our shiso shochu, and the 35th anniversary of Hakata no Hana Mugi. We will develop measures aimed at further expanding the sales and penetration of these core products. At the same time, we will engage in measures to stimulate demand from people drinking at home, which has grown rapidly in recent years, through Big Man kou-type shochu and by entering the market for craft gin.
In January 2018, OENON PRODUCT SUPPORT CO., LTD., began business to leverage our new strength in subcontracted production. This company will strengthen the chu-hi (RTD) business by taking full advantage of the strength of the Oenon Group sales network and cultivate a corporate structure that will up to the competition.
We will pursue an area marketing strategy that gives due consideration to regional characteristics to cultivate regionally familiar products through local brands that exert regional strengths. At the same time, by clarifying vigorous brands, we will invest our management resources in a concentrated manner and conduct marketing that will lead to future value.
We plan to proactively develop the enzymes and pharmaceuticals segment. We aim to further expand sales of our mainstay, lactase, by launching new products. We also expand the production support business through strengthening initiatives targeting food and beverage producers that give high marks to the Group’s fermentation technologies and facilities.
We have formulated Long-Term Vision 100, leading up to our 100th anniversary of establishment in 2024, and Medium-Term Management Plan 2020—our first step in realizing this vision. Our numerical targets for fiscal 2020 are net sales of ¥100 billion, ordinary income of ¥5 billion, an ordinary income margin of 5%, dividends per share of ¥10 and ROE of 10% or more. Guided by these objectives, we will push forward with management efforts to enhance the corporate value of the Group.
I ask for your ongoing support and encouragement of these endeavors.
President and CEO
Oenon Holdings, Inc.