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TABLE OF CONTENTS
I)

Review of the Medium-term Corporate Strategy “NewKANRO 2021”＊Performance trends／＊Quantitative results／＊Reinforcement of management baseII) Awareness of business environment＊Candy market trends (1) Trend by composition (2) Market and Kanro (2019 vs. 2021)＊Macro environment [PEST analysis]＊Direction to be pursued in the Medium-term Corporate Strategy 2024

III) Our vision＊Kanro Vision 2030 (1) The big picture (2) Priority strategies＊Kanro’s values＊As a purpose-driven companyIV) Medium-term Corporate Strategy 2024

＊Positioning /＊Key initiatives and KPIs /＊Kanro’s vision of value creation＊Expansion of business domains＊Business division initiatives<Core Business Division> <Digital Commerce Business Division> <Global Business Division><Future Design Business Division>＊Functional division initiatives＊ESG management＊Human resources and organization＊Financial strategy (1) Basic policy (2) 3-year cash flow plan (3) Target financial indicators＊Target non-financial indicators

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1I) Review of the Medium-term Corporate Strategy“NewKANRO 2021”

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2I) Review of the Medium-term Corporate Strategy “NewKANRO 2021”

Performance trends(All figures are non-consolidated) Net sales and ordinary income: forecast achieved in 2017-2019, short of forecast in 2020
and 2021 due to impact of COVID-19 in addition to upfront investment (in equipment
and human resources) made in 2020-2021
 ROE: forecast achieved in 2017-2019, short of forecast in 2020 and 2021
 Dividend: maintained stable dividend, increased dividend in 2020 and 2021
Net sales/ordinary income (100 million yen)

300

256.6

250
200
150

12.9

100

35

12.0

30

10.0

25

8.0

20

6.0

15
10

50

5

0

0

2017

2018

2019

2020

2021

ROE

(%)

Dividend per share
2019

2020

2021

30

30

30

30
+α

30
+α

30

32.5

30

32

40

9.8

7.7
6.1

6.1

5.5
Dividend
(yen)
(*2)

Forecast (Medium-term strategy)

2.0

Actual

2017

2018

2019

2020

(*1) Recorded extraordinary income in 2018

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2018

（*1）

4.0

0.0

2017

Forecast

Net sales (Medium-term strategy)
Net sales (actual)
Ordinary income (Medium-term strategy)
Ordinary income (actual)

Ordinary income(100 million yen)

ActualNet sales(100 million yen)

(*3)

2021
(*2) Factoring in share split and share consolidation(*3) Paid special dividend of 2.5 yen in 20183I) Review of the Medium-term Corporate Strategy “NewKANRO 2021”

Quantitative results
Indicator

2021 Targets*1

2021 Actual

Evaluation

Net sales¥26.0 billion¥25.66 billion

Almost met

Ordinary
income¥2.6 billion¥1.29 billion

Not metROE

10% or higher

7.7%

Not metDividend

¥30+

¥40

Met

(*)

(*) factoring in share split and share consolidation* Profit and loss targets were withdrawn in July 2020 given the substantial impact of the spread of
COVID-19 cases on business environment and unclear outlook on when the situation will settle down.

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4I) Review of the Medium-term Corporate Strategy “NewKANRO 2021”

Reinforcement of management base (1)Renewal of
corporate identity
Elimination ofwastefulness
Reduction of
cost of sales
Personnel
system● 2017 New corporate slogan “Sweeten the Future”● Carried out continuous improvement activities across the three production plants, andachieved leaner processes in such areas as operation, disposal and time.
● 2018 Improved operational efficiency by introducing a sales support system● 2018 Consolidated candy production lines following integration with Hikari Seika Co., Ltd.
● 2019 Improved production efficiency through launch of new gummies production line andstructure to boost production at Matsumoto Plant● Reduced miscellaneous losses through improved sales forecasting accuracy● 2019 Introduced a new personnel system to improve employee engagement

Development of
IT infrastructure● 2018 Enhanced communication through relocation of the Head Office● 2020 Implemented measures to facilitate promotion of teleworking

Quality assurance
system● Obtained FSSC 22000 certification, an international standard for food safety management

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systems, at all plants(Certification for Asahi Plant acquired in 2015, Hikari Plant in 2018 and Matsumoto Plant in 2019)5I) Review of the Medium-term Corporate Strategy “NewKANRO 2021”

Reinforcement of management base (2)CSR andsustainability● 2017 Launched education-focused CSR programs on a full scale● 2020 Strengthened activities to support sports from the perspective of creating value through sweetness● 2020 Launched the “Candy-yell” project of sending cheers to the society through candies● Started initiatives to switch product packaging materials to eco-friendly materials

Diversity● 2018 Established Diversity & Inclusion Office, was selected for the “New Diversity Management Selection100” in FY2020● 2020 Opened “Kanro Farm,” an indoor herb garden where diverse workforce can play an active role

Corporate
governance● 2018 Established the “Governance Committee” comprised mainly of independent outside directors● Enhanced the Board of Directors (performed evaluation of the effectiveness of the Board of Directors,
conducted strategy discussions, increased the number of Board meetings)

Capital costmanagement● Practicing ROIC management (KPI management using ROIC tree, etc.)● Formulated and introduced investment profitability criterion based on cost of capital● Reduced strategic shareholdings

IR activities● 2019 Established IR Office and implemented initiatives such as enhancement of information disclosureand briefing sessions for investors（Number of shareholders increased from 2,869 at 2016 year-end to 7,295 at 2021 year-end)● Won the best of category “Grand Award” in 2 categories of the “International ARC Awards 2021”

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6II) Awareness of business environment

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7II) Awareness of business environment

Candy market trends(1) Trend by composition

 Hard and tablet candies struggled in the face of a new lifestyle brought about by COVID-19
 Gummies captured at-home consumption demand and returned to growth track

Candy Sales amount(¥100 million)

3,000
2,500
2,000
1,500
1,000
500
0

Hard candy
2,622

Gummies
2,757

Tablet candy
2,845

467

477

638

680

555

606

619

1,016

1,045

2017

2018

458
593

Others
2,549

2,460

454

436

540

475

569

635

1,069

986

914

2019

2020

2021

Source: INTAGE Inc. SRI+ Candy market Jan. 2017 - Dec. 2021 cumulative total sales amount

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8II) Awareness of business environment

Candy market trends(2) Market and Kanro (2019 vs. 2021)

 Candy market recovery lagging in 2021, at 86.5% of the pre-pandemic level (2019) Kanro’s performance was driven by gummies, with sales growing above 2019 (resulting in No.
1 share of the candy market)（％）

2021 Candy market sales amount (vs. 2019)

Kanro’s share of candy market

2019

2021

Hard candy

No.1 19.0％

No.1 20.7%

GummiesNo.3 13.8%

No.2 17.5％

Candy market

No.2 10.1％

No.1 12.3％

140.0
130.8

130.0
120.0
110.0

104.7

102.6

100.0
90.0
80.0

93.4
86.5

85.5
Hard candy

Gummies
Candy market

Candy market

カンロ

Source: INTAGE Inc. SRI+ Hard candy market, comparison with 2019 ofannual sales amount (Jan.-Dec.) by type

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Source: INTAGE Inc. SRI+ Hard candy market Jan.-Dec. annual total for 2019 and 2021,
share in terms of sales amount9II) Awareness of business environment

Macro environment
Politics

Environment
EconomySociety

Technology【PEST analysis】

Amendments to laws andregulations(Food Sanitation Act<Changes inlabeling, etc.>etc.)

Climate change(concerns over raw materials
procurement)(greater challenge in demand
forecasting)

Extension of retirement age(Amendments to Act on Stabilizationof Employment of Elderly Persons)Exchange rates
Weakening of the yen(gradual reduction and elimination oftariffs on candies)

Surge in raw materials andcrude oil prices(advantageous for exports)(disadvantageous for imports)(rise in costs)(acceleration of shift to clean energy)

Negative image associated withcarbohydrates and calorie
intake(decreasing number of domestic
consumers of candies)(decrease in candy consumption)(increase in zero-carb, low-calorie
foods)

Lifestyle changes due to COVID-19
Shift to value-based purchasing
behavior

Promotion of DX

Growth of e-commercemarket)Evolution of food caused byfood technology

Declining birthrate andaging society / declining
population(smart factories)(digital marketing)(response to OMO*)(diversification of digital sales channels)※ Online Merges with Offline

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Changes in tradeenvironment due to TPP,
RCEP, EPA

(increasing awareness towards healthand SDGs)(increasing attention on Generation Z)(expansion of business domains)(increase in food substitutes and plantbased products)(birth of food 3D printers)10II) Awareness of business environment

Direction to be pursued in the Medium-term Corporate Strategy 2024

1．Changes in consumer lifestyle Changes in consumer behavior and values are accelerating Life after COVID-19, when it arrives, will not return to the lifestyle before COVID19
 People’s lives will be designed by new values and services, and the economy will
gradually recover

2．Growth potential of the candy market

 With organic growth, the current trends will continue (gradual decline of hardcandies, growth of gummies) By creating values through innovation, both hard candies and gummies havepotential for further market expansion and development of new markets

While the future is unpredictable, Kanro is committed
to creating the future
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11III) Our vision

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12III) Our vision

Kanro Vision 2030 (1) The big picture
Kanro Vision
2030
Priority strategies
Businessdomains

Creating a healthy future that is filled with smiles by offering products andservices focusing on ingredients and functionality
Value creation, ESG management, and expansion of business domains

CORE

GLOBAL

Digital

FUTURE

Kanro’s strengths

Trust, brand, R&D capabilities, and quality assurance system

Financial targets*

Net sales of 50 billion yen, operating income ratio of 9% or higher,
and ROIC of 10% or higher*Figures for net sales and operating income ratio are restated due to application of the new revenue recognition standard

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13III) Our vision

Kanro Vision 2030 (2) Priority strategies
Kanro Vision 2030

The “three priority strategies,” supported by “humanresources and organization”

Valuecreation

ESG
management
Human resourcesand organization

Expansion ofbusiness domains

Three priority strategies
Value creation
A company that creates new values and contributes to healthand a better society through its pursuit of “ingredients” and“functionality,” and with its passion for candies cultivated over
110 years of history and tradition.

ESG management
A company that addresses social issues by creating values
through its business, as a company that cherishes harmony withsociety, that is needed by society, and is chosen by people

Expansion of business domains
A company that continues to grow through diversified
business development with domestic candy business at thecore and with an eye on overseas, digital and future markets.

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14III) Our vision

Kanro’s values

In an era of dramatic changes and with uncertainty in the outlook, Kanro has
defined its purpose by tracing back the path it has taken to date and putting
into words its thoughts for the future
OUR PURPOSE
STATEMENTCREDO(Code of Conduct)
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Originality and Ingenuity
Never fear change. Be creative and stayinnovative.

Loyalty and Integrity
Earn the trust of all stakeholders
through sincere words and actions.

A Million Hearts as One
Inclusion by respecting diversity andindividual expertise, and leveraging thesein helping employees and the company
grow together toward our purpose.

15III) Our vision

As a purpose-driven company

Medium-term Corporate Strategy 2024
Our vision

As a Purpose-Driven Company

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16IV) Medium-term Corporate Strategy 2024

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17IV) Medium-term Corporate Strategy 2024

Positioning

With purpose as the starting point, begin a New Chapter
in 2022 toward achievement of “Kanro Vision 2030”

2028～2030
2025～2027

3rd Step

2022～2024

1st Step

2nd Step

Achieve long-term vision
value creation

Drive growth

Launch new businesses
toward achieving the vision
Medium-term Corporate Strategy 2024

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18

IV) Medium-term Corporate Strategy 2024

Key initiatives and KPIs

KPIs

Key initiatives

2024 targets
Value creation

Beef up investment to advance innovation
Aim for sustainability and strengthen pursuit of “ingredients” and“functionality”
Listen to consumer feedback obtained directly through digitalcontacts
Strengthen research and development from a global perspective

Financial
indicators

ESG management




◆

Build platform for expanding contacts with consumers while
deploying the values created to new areas and new channels
Continuously implement cost reduction measures to prepare forinvesting in future growth in the 2nd step

Human resources and organization◆◆

Develop environment that allows diverse workforce to play anactive role
Improve employee engagement

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5% or higher
Core 3% or higher
Others 30% or higher

Operating income
margin7%

ROIC

Enhance internal structure to achieve SDGs
Promote diversity and inclusion
Strengthen corporate governance7.5% or higher
262.4 t / ¥100
millionCO2 emissions (*)

Expansion of business domains◆

Net sales growth rate(compound annual
growth rate)(Total of scope 1, 2 and 3)

Nonfinancial
indicators

Activities to provide
education on the value ofsugar

8 million people

Employee engagement
score

55％

(*) Per unit of net sales

19IV) Medium-term Corporate Strategy 2024

Kanro’s vision in value creation (1)Value creation through innovation＜CUSTOMER IN＞<Innovation throughdigital contacts>
Needs×Digital

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DigitalValue Researchtechnology
creation
Innovative
products＜PRODUCT OUT＞

<Innovation ofresearch technology>

Seeds×Research technology

20IV) Medium-term Corporate Strategy 2024

Kanro’s vision in value creation (2)<Innovation of research technology>

Continue creating new product values by applying every available technology
Seeds×Research technology
Researchtechnology

Valuecreation

Power of ingredients × new composition
and manufacturing technology
Plant-based ingredients ×
new manufacturing technology

Production methods and equipment ×
new technology

Production plants x streamlining

Innovative
products

New applications × new composition andmanufacturing technology
Intellectual property in research ×
food and pharmaceutical technologies

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Ingredient standards and quality control ×
global standard

21IV) Medium-term Corporate Strategy 2024

Kanro’s vision in value creation (3)<Innovation through digital contacts>

Implement data-driven digital marketing to create new customer value
Needs×Digital
Social media marketing×Digital

Bigdata×Digital

Voice of customer×Digital

Generation Z×Digital

DigitalValuecreation
Innovative
products

Brand×Digital

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Global×Digital

22IV) Medium-term Corporate Strategy 2024

Expansion of business domains
In the core business, develop new domains around existing domains through innovation
Build new business domains by expanding markets and channels through the three businesses
Product (domain)

Existing

NewCore business
Digital commerce business

New

Market / channel

Existing

Global business

Compound annual
growth rate
3% orhigher5% orhigher
30% orhigherFuture design business
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23IV) Medium-term Corporate Strategy 2024

Business division initiatives<Core Business Division (1)>Priority policy
Send cheers to consumers with candies, the product that Kanro has
been engaged in for many years.
Driven by the purpose defined for each brand, realize new co-creation ofcandies with Generation Z and capture growth of the gummies market
through a marketing mix of product, sales and promotion (aim to
maintain the top share of the candy market and to achieve No. 1 share of
the gummies market).

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24

IV) Medium-term Corporate Strategy 2024

Business division initiatives<Core Business Division (2)>Product strategy
Core brands

Hard candy

Gummies◆Develop innovative products◆Cultivate existing brands◆Co-create with Generation Z

Websitepromotion◆Develop brand-specificpurpose that is based on
corporate purpose

Sampling◆Develop plant-based products◆Contribute to improving
well-being

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◆Launch products that haveagility25IV) Medium-term Corporate Strategy 2024

Business division initiatives<Core Business Division (3)>

Sales strategy
Digital communication◆Use digital data
◆Use SFA (Sales Force Automation)◆Use digital media

Store-focused◆Propose sales methods andcreate sales space aligned tostore type◆Strengthen link betweensocial media promotion andin-store promotion

Channel◆Expand sales of core
brands◆Pursue strategic
collaboration with retailers
and wholesalers◆Acquire new channels◆Strengthen on-site visits

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26

IV) Medium-term Corporate Strategy 2024

Business division initiatives <Digital Commerce Business Division (1)>Priority policy

Expand business by building a business platform with HITOTUBU
KANRO as a foothold and reaching out to the world with products
and services that seek to create a healthy future filled with smiles,
to be made available exclusively in e-commerce stores.

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27

IV) Medium-term Corporate Strategy 2024

Business division initiatives <Digital Commerce Business Division (2)>Product and service strategy
HITOTUBU KANRO(e-commerce, stores)◆Roll out of Gummitzel
variations◆Ecoline

Launch of “HITOTUBU KANRO earth”

New products (e-commerce)◆Brain × sugar(1) Full-scale launch of“BRAON,” an esports
product

New services◆New member service(subscription)“Kanro POCKeT” delivery
service (tentative)(2) Launch of strategic
products pursuing thepotential of sugar in thefield of brain (exclusively
for e-commerce)◆New ingredient-driven snacks(exclusively for e-commerce)

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28

IV) Medium-term Corporate Strategy 2024

Business division initiatives <Digital Commerce Business Division (3)>Brick-and-mortar store
strategy◆Strengthen and expand
flagship store◆Actively engage in marketingthrough popup stores◆Strengthen the links between
members and e-commerce

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Sales strategy
Kanro POCKeT◆Build e-commerce platform

Others◆Strengthen platform forcross-border e-commerce◆Consider preparing for
deployment in major
e-commerce malls andwholesalers29IV) Medium-term Corporate Strategy 2024

Business division initiatives <Global Business Division>

Priority policy
Promote globalization and deliver Kanro quality to the people
around the world to contribute to health and life filled with smiles.
Business strategy

Product strategy

Sales strategy

Globalization

Exports

Exports

 Develop health problem-solving
products

 Further cultivate transactions inGreater China
 Tap into new markets,
expand exporttransactions◆ Strengthen quality assurance
system, develop humanresources◆ Promote collaboration withpartners

 Develop products exclusively foroverseas markets, products withunified specifications for domestic
and international markets

Imports
 Establish the 4D Amos brands,
develop limited-edition products

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 Embark on cross-border
e-commerce business(collaboration with Digital Commerce
Business Division)

30IV) Medium-term Corporate Strategy 2024

Business division initiatives <Future Design Business Division>

Priority policy
Targeting “future market and consumers,” design and create products
and services that are earth-friendly and “open people's hearts.”
Business strategy
 Build business platform with“sustainability” and “well-being”
as the key words

Sustainability

Well-being

 Turn non-compliant candies and Continuously send out
food waste into products and sellmessages on earth-friendly
them as “HITOTUBU KANRO earth”“goods” and exciting
products“experiences”

 Implement circular economy
initiatives
 Seek discontinuous growththrough capital and businessalliances, etc.
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 Contribute to ESG management
through creation of futurebusinesses

31IV) Medium-term Corporate Strategy 2024

Functional division initiatives

Research and Technology
Division

Functional divisions
Marketing Division

Production Division(production plants)◆Create new snacks◆Promote digital marketing◆Realize smart factories◆Respond to globalization◆Develop and foster new
brands◆Improve man-hour productivity

Corporate Communications
Division

Product Quality Division

SCM Division◆Set up a quality assurance
framework conforming to theglobal standard◆Ensure stable procurement ofsustainable raw materials◆Strengthen stakeholder
empathy◆Develop stable logistics
systems◆Enhance customer satisfaction
and customer experience◆Strengthen quality control at
production plants

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◆Reduce waste by improving
sales forecasting accuracy

32IV) Medium-term Corporate Strategy 2024

ESG management (1)Structure for achieving SDGs
Effective April 1, 2022, sustainability promotion efforts will be led by the “Sustainability Committee,” a crossorganizational structure to be newly established with the aim of raising awareness of all employees aboutsustainability issues and digging deeper into the initiatives implemented to date.

Kanro Sustainability Promotion Structure
Sustainability Committee

Creating value
throughsweetness

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Mitigating
environmental load
through business

Food safety andreliability

Promotion ofhuman rights anddiversity

Corporate
governance33IV) Medium-term Corporate Strategy 2024

ESG management (2)Main sustainability initiatives by business division

Business divisionCore

Digital Commerce

GlobalFuture Design

・ Food barrier-free (labeling that clearly indicates ingredientsand processing methods used)

●

●

●

●

・ Donation linked to product sales

●

●

●

●

・ Downsizing of product packaging to reduce use of
packaging materials

●

●

●

●

・ Promotion of switch to environmentally friendly packaging
materials and inks

●

●

●

●

・ Extension of best-before dates by reviewing selection of
raw materials and composition

●

●

●

●

・ Reduction of losses by improving sales forecasting
accuracy

●

●

●

●

・ Recycling, upcycling and reusing

●

●

●

●

・ Recycling program through HITOTUBU KANRO stores

●

●

●

●

・ Marketing that contributes to reduction of food loss and
waste

●

●

●

●

・ Capital investment that contributes to reducing CO2
emissions

●

●

●

●

・ Reduction of energy consumption, study on introduction ofclean energy

●

●

●

●

・ Disclosure and improvement of environmental data relating
to wastes, water resources, etc.

●

●

●

●

・ Planned implementation of quality inspection at
outsourced manufacturers

●

●

●

●

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34

IV) Medium-term Corporate Strategy 2024

ESG management (3)Promotion of diversity & inclusion
 Develop human rights policy Raise the rates of women in management and employment of persons with disabilities
 Promote understanding of LGBTQ issues and create a climate that is free from bias
 Provide an environment that encourages use of childcare and nursing care leaves
 Promote smart factories for a comfortable working environment at production plants
 Facilitate use of satellite offices and external co-working spaces, expand the scope of teleworking
 Examine introduction of a “workcation” system

Enhancement of corporate governance Enhance BCP against disasters and spread of infectious diseases
 Strengthen cyber security measures
 Enhance information disclosure (disclosure of non-financial information including disclosure inline with TCFD recommendations, sustainability promotion structure, risk management structure)
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35IV) Medium-term Corporate Strategy 2024

Human resources and organization

Human resources and organization that support purpose-driven company

Develop environment thatallows diverse workforce
to play an active role
 Revise systems to promote
regeneration and invigorationof the organization
 Implement global business skills
training
 Strengthen talent management system
 Implement reskilling programs

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Improve employee engagement
 Promote widespread understandingof and sympathy with the purpose,and purpose-driven autonomous
organizational management
 Revamp performance appraisal
system Encourage use of communication
tools to connect employees

36IV) Medium-term Corporate Strategy 2024

Financial strategy (1) Basic policy

Cash flows fromoperating activities
generated by corebusiness

Cash flows frominvesting activities forsustained growth

Cash flows fromfinancing activities
that maintainfinancial discipline

Investment in management
resources

Financial strategy based on business management focusing on cost of capital (ROIC)
to achieve growth

Procurement
anddistribu
tion

Increase in value of corebusiness• Profitability and efficiency
improvement

・ Human capital：invest in human resources for value
creation・ Intellectual capital：invest in R&D for innovation

Strategic investment ingrowth businesses• Gummies as the growthengine• Expansion of businessdomains・ Manufacturing capital：increase production capacity anddevelop new technologies
・ Natural capital: implement initiatives conducive to
reducing environmental load
・ Social capital: promote purpose-driven management

Optimal capital structureusing financial leverage

・ Procure funds by maintaining financial discipline
・ Secure liquidity to support growth strategy and ESG
management→ Conclude commitment line agreement based on
ESG/SDGs assessment (ESG financing)

Shareholder returns

・ Maintain current dividend, raise dividend payout ratio
gradually to 40%⇒Optimize corporate value with profitability×efficiency×growth potential
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37

IV) Medium-term Corporate Strategy 2024

Financial strategy (2) 3-year cash flow plan

Use operating cash flow generated from core business for investment in future growth including new
business domains (digital commerce business, global business and future design business) and forincreasing shareholder returns.
Cumulative cash flow 2022 - 2024
Cash-inCash-inFlow
Flow

Cash-out Flow
Flow
Cash-out

Core businessApprox.約80億円¥8 billion
コア事業

Capital
設備投資investment
約70億円
Approx. ¥7 billion

Investment in digital
デジタル・新事業へ投資
and new businesses
ESG financing and
ESGファイナンス等 財務活動
other financial activities

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Shareholder returns
株主還元10億円以上¥1 billion or more

Invest in highly efficient projects that contribute to ROIC
improvement (with guideline rates set at levels higher than thecost of capital)
・ Hold down maintenance and replacement investments
・ Strengthen production system for gummies that are the growthengine・ Create new values
・ Invest in productivity improvement (smart factory)
・ Promote digitalization (installation of a new ERP system, etc.)
・ Make disciplined investment decisions for expansion ofbusiness domains (set guideline rate for each area and region)

・Increase shareholder returns(maintain ¥40 annual dividend, increase dividend payout ratio
gradually to 40%)38IV) Medium-term Corporate Strategy 2024

Financial strategy (3) Financial indicators
Indicator

2021
Final fiscal year of the previous
Medium-term Corporate Strategy

Net sales*1¥21.58 billion
Total of 4
businesses

Medium-term Corporate Strategy 2024
2022

2024

¥22.6 billion-

Kanro Vision 2030

¥50 billion *2

Compound annual growth rate

5% or higher

Core business

3% or higher¥30 billion(Digital Commerce/Global/Future Design) 3 businesses

30% or higher¥20 billion*2

Operating income
margin

5.8%

5.0%

7.0%

9% or higher *2

ROIC

7.3%

ー

7.5% or higher

10% or higher

Dividend payout
ratio

32.0%

34.4%

40%

50%

*1 Restated figures due to application of the new revenue recognition standard
Copyright ©2022 Kanro Inc.

*2 Restated due to application of the new revenue recognition standard

39IV) Medium-term Corporate Strategy 2024

Non-financial indicators

Key sustainability indicators

Base
2019

Mitigating
environmentalload throughbusiness

Promotion ofhuman rights anddiversity

Creating value
throughsweetness

2020

Medium-term Corporate
Strategy

Kanro Vision 2030

2024

2030

262.4 t/¥100 million

216.0 t/¥100 million• Reduction of CO2 emissions(scope 1 to 3)(per unit of net sales)

308.6 t/¥100 million*1• Reduction of food waste(per unit of net sales)4.63 t/¥100 million *1

4.12 t/¥100 million

3.24 t/¥100 million• Rate of women in management(manager or above)

12.6％

20％

In the 30％ range• Employment rate of persons
with disabilities

2.6％

3.0％ with expansionof Kanro farm

Maintain 3.0％

• Employee engagement score

47.0％

55.0％

70.0％

480,000 people

8 million
people15 million
people• Activities to disseminate
correct information on
the value of sugar*1Restated due to application of the newrevenue recognition standard

Copyright ©2022 Kanro Inc.

(-15%) *2(-11%) *1(-30%) *1(-30%) *1*2 Restated due to application of the new revenue
recognition standard; reduction target has been revised40

As a Purpose-Driven Company
OUR SKILLS
Products and services in pursuit of the power ofmaterials and functionality leading to a sweet future

OUR
PURPOSE

Copyright ©2022 Kanro Inc.

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