Management Policy Briefing: Mid-term Business Plan 2026
and the Path to Achieving Group Mission 2030
DyDo Group Holdings, Inc.
(1st Section of the Tokyo Stock Exchange: 2590)

January 14, 2022

Table of Contents

01 Path to Achieving Group Mission 2030

P.03

02

P.24

Mid term Business Plan 2026

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2

01 Path to Achieving Group Mission 2030

3

The DyDo Group’s purpose for existing
Offering delicious products for sound mind and body

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4

Group Mission 2030
Formulated in January 2019 as an ideal of where, and what, we want to be in 2030

For DyDo Group to create enjoyable,
healthy lifestyles for people around the world
Together with our customers.
Nurturing our customers’ health
We will deliver products and services that help improvehealth and quality of life for our customers around theworld, in a tireless quest for delicious taste.

Together with the next generation.

Together with society.
Taking the lead in social reform
We will take the lead in social reform, going beyond
conventional wisdom to adopt new perspectives forachieving a sustainable society.

Together with our people.

Creating new value for future generations

Connecting people to people

We will take advantage of innovative technologies,
bringing surprise and delight to all of our stakeholders.

We will seek out new ways to form mutually beneficial
relationships with stakeholders, both old and new, within
and outside the company, working flexibly with them andrespecting the diversity of their values and abilities.

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5

Group Mission 2030 Roadmap
To ensure we achieve the goals of Group Mission 2030, we have divided the period up to 2030 into three stages
As part of the first stage, Mid-term Business Plan 2021, we are pushing improved profitability for existing
businesses and developing our investment strategy for both new and existing businesses
2019

2022

2027

2030

[Profit image]Decline in profit due toinvestment strategy

Plan

Business as usual
Mid-term Business Plan 2021
Platform-strengthening
and investment stage

Growth stage

Achievement stage

 Basic Policies
Focusing on improving profits and implementing robust management for existing businesses
Making judgments about business continuity to facilitate strategic management in International Beverage Business
Implementing a growth strategy to achieve Group Mission 2030
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6

Mid-term Business Plan 2021 Recap
We are implementing initiatives to strengthen the foundation of our core business, such as increasing the number ofvending machines or reforming vending machine operations
Cultivating the healthcare sector to solidify its position as a second major source of revenue, such as by growing ourhome shopping sales of supplements and starting our orphan drug business
Improvements in profitability forexisting businesses
 Implementing initiatives to raise
profitability and strengthen
competitiveness for our vending machine
business (Domestic Beverage Business) Cultivating home shopping sales ofsupplements (Domestic Beverage
Business) as a high-growth, high-profit
business
 Improving profitability for the FoodBusiness via multi-faceted initiatives

Selection and concentration in ourInternational Beverage Business2019

Turkey, Malaysia, Russia, and China

2022

Turkey, (UK、Russia)and China

 Achieved 135% sales growth in the Turkishbusiness on a local currency basis(comparing the Q3 cumulative results fromFY2021 with those of FY2018, the final
year of the previous mid-term business plan) Withdrawal from the Malaysian business

Implementation of investment
strategies
 Investing to reform operations in theDomestic Beverage Business Investing in equipment used to expand ourcontract manufacturing framework at DAIDO
Yakuhin (Pharmaceutical-related Business) Entering the orphan drug business andacquiring two licenses
 Decision against going ahead with M&A in
the healthcare sector after investigating
several leads

Increased number ofvending machines

Making progress with efforts toensure a competitive advantage inthe vending machine market
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Focus on business expansion
centered on the Turkish business

Steady implementation in both new andexisting businesses
Results have been partially delayed due to the pandemic
7Mid-term Business Plan 2021:Performance
The impact of COVID-19 and the lack of M&A investment prompted some concern about sales. In terms of
profitability, though, we have managed to maintain a certain level despite it being an investment stage▍Consolidated sales and consolidated operating profit ratio

Net sales
Operatingprofit ratio

Previous Mid-term Business Plan (Challenge the Next Stage)
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Mid-term Business Plan 2021
8

Mid-term Business Plan 2021: Achievements and Next Steps
We have steadily implemented our strategy during the platform-strengthening and investment stage and are working out how topromote a growth strategy that can respond to changes in the business environment is our next step
Major achievements of the 2021 plan

Next steps for the 2026 plan

Innovation in
the Domestic
Beverage
Business With a sales system that is qualitatively and quantitatively better, we haveopened up new sites and minimized removals and since our lowest point in
2019, the number of vending machines has steadily grown We decided to make all machines used in direct sales Internet-connected andbetween investment and task reforms, we are planning to complete ourconstruction of a smart operations*1 structure in 2022

 We need to continue to increase the number of vending machines andimprove sales per machine, leading to a trend of increased revenues
 We need to continuously evolve employee tasks and expand smart
operations to the Kyoeikai*2
 We need to respond to dramatic rises in raw material costs

Expansion of
Our Business
Overseas

Turkey We increased sales in the Turkish business, particularly for “Saka”
mineral water We made our Turkish subsidiary a wholly owned subsidiary and hadthem establish their own sales and distribution networks
 To expand exports, the Turkish business established a directly controlledsubsidiary in the UK, and our Russian subsidiary’s operations werebrought under the Turkish subsidiary’s operational control

 We need to improve profitability by responding to rising expenses for
raw materials and logistics
 We need to expand our export business to take advantage of theweakening of the lira
 We need to strengthen our resilience against foreign exchange rate
fluctuations by increasing the role of exports in our business

Other We started local production at our Chinese subsidiary, which had
previously only sold imports of products made in Japan, and we predict
it will become profitable We withdrew from the Malaysian market

 We need to roll out health and sugar-free drinks globally We reconstructed our international business strategy by learning fromour past experiences

Development of
a Second Major
Source of
Revenue in
Non-Beverage
Businesses We achieved high growth and high profits for home shopping sales ofsupplements (Domestic Beverage Business)
 We began operations of a new pouch packaging line at DAIDO Yakuhin(Pharmaceutical-related Business) and completed construction of Kanto Plant
as a base in eastern Japan We started the orphan drug business and by recruiting specialist personnel wehave set up an organizational framework and successfully signed two license
agreements

 We need to contribute to overall Group profits by expanding home
shopping supplements sales
 We need to improve utilization rates at DAIDO Yakuhin’s Kanto Plant(and respond to ways in which the market has changed by the pandemic)
 We need to cultivate the orphan drug business by taking a long-term
perspective*1 A term we coined to describe the new, high-productivity work flow we created after undertaking a radical review of our conventional operations*2 Vending machine operators in whom we have no capital investment and who are responsible for some DyDo vending machine operations, particularly in more rural areas
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9

Mid-term Business Plan 2021: Achievements and Next StepsIn response to changes in awareness among society and people that have resulted from the pandemic, we arechanging to more flexible ways of working and accelerating efforts to promote sustainable management
Major achievements of the 2021 plan

Investment inpeoplePromotion of
ESG
management



Next steps for the 2026 plan

We need to further enhance employee engagement
We need to cultivate future managers
We need to promote diversity

We transitioned to new, flexible workstyles andpromoted health and productivity management
We introduced a second job system for employees anda system for accepting second job workers
We recruited a diverse range of mid-career specialists

We announced the DyDo Group SDGs Declaration
We established the Group ESG Committee
We launched our Everyone Love the Earth Project

We need to simultaneously promote societal and corporate
sustainability
We need to achieve sustainable growth and improved corporate
value over the medium to long term by promoting
sustainability management

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10Changes in the Business Environment
With the spread of COVID-19 leading to major changes in the business environment and the current urgency
to tackle global environmental issues, the world needs corporations to pursue sustainable management

Acceleration of digital reforms

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Urgent tackling of global
environmental issues

Sustainable management

11Changes in Consumer Trends
Consumer trends have also undergone major changes—not only have new forms of consumer behavior
appeared in line with different values in response to this “new normal,” but demand for health-related andenvironmentally friendly products has grown ever faster, and there are now greater expectations for individual
values and needs, and there are other changes besides

Changing purchasing andpayment methods with the
spread of digital technologies

Expansion in demand for health- Acceptance and expectation ofrelated and environmentally
diverse values and needs
friendly products➡Changes in the social environment and consumer behavior present us with major business opportunities
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12

Designating Material Issues to Get to Where, and What, We Want to Be in 2030
We chose these eight material issues to help us get to where, and what, we want to be in 2030

Together with our customers.

Together with society.

Nurturing our customers’ healthTaking the lead in social reform

We will deliver products and services
that help improve health and quality oflife for our customers around the world,
in a tireless quest for delicious taste.

We will take the lead in social reform,
going beyond conventional wisdom toadopt new perspectives for achieving asustainable society.

Together with the next
generation.
Creating new value for future
generations
We will take advantage of innovativetechnologies, bringing surprise anddelight to all of our stakeholders.

Together with our people.
Connecting people to people
We will seek out new ways to form
mutually beneficial relationships withstakeholders, both old and new, within
and outside the company, working
flexibly with them and respecting thediversity of their values and abilities.

For DyDo Group to create enjoyable,
healthy lifestyles for people around the world
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13

Designating Material Issues to Get to Where, and What, We Want to Be in 2030
DyDo Group
Corporate Philosophy

Creating happiness and prosperity, together with people and with society.
To achieve this goal, the DyDo Group will continue to embrace new challenges in a dynamic way.

Strengths and values we have held
since our founding

Eight material issues aimed at sustainablegrowthWhere, and what, we want to be in 2030
2030年のあるべき姿

Closeness to customers andconsidering their perspectives

Growth Strategies

Delivering products
customers want in theclosest and mostconvenient locations

Our spirit is applicable to the SDGs
principle of “leaving no one behind.”

Organizational Foundation
Business growth throughpartnerships

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14

Group Mission 2030: Key Performance Indicators
We will raise social value, environmental value, and economic value to achieve sustainable growth▐ Social value

We will contribute to the achievement of a sustainable society where people around the world can haveenjoyable, healthy lifestyles

For DyDo Group to create enjoyable,
healthy lifestyles for people around the world▐ Environmental value
We will aim to make our vending machine businesscarbon neutral by 2050 (for both direct emissions andthrough generating the electricity the machines use*1)▐ Economic value
We will aim to improve our corporate value in themedium to long term

We will aim to make emissions (Scope 1 and 2)
by the Domestic Beverage Business*2

Consolidated ROIC in FY2029

carbon neutral by 2030

8% or higher

We will aim to cut CO2 emissions (Scope 1 and 2) for major Japanese groupsubsidiaries*3 by half*4 compared to 2020 levels by 2030

*Invested capital is the amount put into in the business segments*1 CO emissions produced by vending machines operated by DyDo Beverage Service (Scope 3)2* 2 DyDo DRINCO, DyDo Beverage Service, and DyDo Business Service* 3 DyDo DRINCO, DyDo Beverage Service, and DyDo Business Service, DAIDOYakuhin, TARAMI corporation*4

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Group Mission 2030 Roadmap
The Growth Stage is about focusing our energies on renewing growth for the Domestic Beverage Businesswhile cultivating business from a long-term perspective• Between continued investment aimed at the later Achievement Stage, the recent dramatic price increases for raw materials,
and other factors, we foresee the point in time at which our profit growth trajectory is set to improve being slightly delayed

2019

2022

[Profit image]Decline in profit due toinvestment strategy

2027

2030

Previous plan Plan after review

Business as usual

Mid-term Business Plan 2026
Platform-strengthening andinvestment stage

Growth stage（From FY2019 to FY2021）（From FY2022 to FY2026）

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Achievement stage（From FY2027 to FY2029）

16

Business Portfolio
We are promoting a business portfolio strategy that will help us to get to where, and what, we want to be in 2030
High

Cultivate these as main drivers of future
profit from a long-term perspective
Expansion of our businessoverseas

Sales growth rate

International
Beverage Business（Turkey, China,
Other regions）

Medium-term improvements to growthpotential and profitability

Development of a second major source of revenue in non-drink businesses

Domestic
Beverage Business

Other（ DyDo DRINCO /Supplement*）（DyDo Pharma）

Pharmaceuticalrelated Business（ DAIDO Yakuhin）

Food Business（Tarami）

low（ DyDo DRINCO/
Beverage）

Innovation in the Domestic
Beverage Business

Growth direction

low

Domestic
Beverage BusinessProfitability（ROIC)High* As home shopping sales of supplements are currently being developed by DyDo DRINCO, they belong to the Domestic Beverage Business segment for accounting purposes.

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17

Business Portfolio: Basic Policy and Material Issues
To strengthen the earning capacity of each business, we have switched the key performance indicator (KPI)
from operating margin to return on invested capital (ROIC)
Innovation in
the Domestic
Beverage
Business

Expansionof ourbusinessoverseas

Development of a second
major source ofrevenue in
non-drinkbusinesses

Initiatives toimprove
profitability• Growth of the vending machine
channel• Continuous evolution of smart
operations• Stable growth of the Turkishbusiness• Response to dramatic price rises
for raw materials and expansionof the export business• Profitable growth of home
shopping sales of supplements• Improvement in profitability for
DAIDO Yakuhin• Continuous improvements to
Tarami’s manufacturing costs

Initiatives toimprove asset
turnover• Improvement of per vending
machine sales• Service life extension ofvending machines• Improvements to plantutilization rates• Continuous growth in home
shopping supplements sales• Improvements to plantutilization rates

Basic Policy
and Material Issues

Growth Stage(FY2022-FY2026)

KPI

Achievement
Stage(FY2027-FY2029)

Initiatives for
futureachievements

ROIC 13％• Ensuring of a competitive
advantage in the vending
machine market

KPI
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ROIC 17％

ROIC 3％

ROIC 8％• Construction of health-related
portfolios with consideration of
M&As• Business development of DyDo
Pharma into steady profitability

ROIC 5％

ROIC 17％
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Measures to Address Our Material Issues(Organizational Foundation to Support Growth Strategies—Part 1)

In order to achieve sustainable growth, we educate employees about our philosophy,
vision and sustainable management. To the same end, we strengthen our managementwith a focus on capital efficiency and enhance our group governance framework

Spreading our philosophy and vision

Ensuring capital-efficiency-focusedmanagement

Enhancing our group governancestructure We spread the DyDo Group’s
unchanging values represented by ourphilosophy, etc.

 We have set KPIs related to capital
productivity (ROIC, etc.) at our major
subsidiaries and will manage theirprogress We will investigate the construction of agroupwide governance structure We have newly determined where, andwhat, we want each of our businesssegments to be and to get us there wewill promote understanding of, andefforts toward, certain material issues
among our employees We will raise awareness at our major
subsidiaries toward capital-efficiencyfocused management and set KPIs
aimed at encouraging improvements
based on each business’ characteristics

 We are making representatives of ourmajor Japanese subsidiaries corporate
officers in the holding company, andenhancing cooperation between groupcompanies Under the auspices of the Group
Sustainability Committee, we will
promote sustainable management
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Measures to Address Our Material Issues(Organizational Foundation to Support Growth Strategies—Part 2)

Our aim is to both train future managers from inside and outside the Group, promote
diversity among personnel, and improve employee engagement within the Group

Hiring and training future managers

Promoting diversity among personnel

 We train the next generation of
executives and professional personnel
from inside and outside the Group We establish environments where
diverse people want to work, regardlessof their nationality, age, gender, or
career experience We will train personnel and encouragethem to interact on a groupwide basis

Improving employee engagement
 We conduct engagement surveys at all
Japanese subsidiaries
 We foster a culture that further promotes
taking on challenges

 We provide employees with flexible
ways of working, such as throughflextime, remote working, or a second
job system
 We strengthen the working environmentso as to support employee health as per
the DyDo Group Health Declaration

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Measures to Address Our Material Issues(Organizational Foundation to Support Growth Strategies—Part 3)

We are aware of the urgency of responding to society’s digital transformation (DX) andso we will make full use of all sorts of digital technologies and develop an IT strategy tohelp our Group evolve▐ DX promotion to create new value
 We will develop future core systems modeled on responses to
new businesses and tasks
 We will develop a system aimed at implementing workstyles
that utilize data-based decision-making
 We will set up a business innovation group to promote DX We will strengthen our IT organization and train IT personnel

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▐ Increased job productivity
 We will methodically move from disparate IT foundations
optimized to each group company to one optimized to theentire group We will invigorate communication across the entire
organization via technology
 To minimize the risk of business disruption from cyber-attacks,
we will create a zero-trust security environment

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Measures to Address Our Material Issues(Organizational Foundation to Support Growth Strategies—Part 4)

We have set targets, particularly for our core vending machine business, and will work tobring about a decarbonized, recycling-oriented society and fulfill our duty as a corporategroup▐ Designation of CO2 emission reduction targets▐ Priority goal for recycling-oriented society▍Reduction of direct emissions by the vending machine business* Priority environmental targets announced in November 2020

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22

Roles the DyDo Group Should Fulfill for Society in 2030
We should deliver food and drink that is delicious for body and mind to create enjoyable, healthy lifestyles forpeople around the world

For DyDo Group to create enjoyable,
healthy lifestyles for people around the world
In the vending machine market,
we will provide new value throughconstantly taking on challenges
and co-creating and so continue
to lead the industry

We will produce medicines
for patients suffering from orphan
diseases for which there are currently
no treatment options
Offering delicious products
for sound mind and body

We will create global brands
that support the health of people
all over the world

We will be

We will utilize our fruits and jellies
to pursue great taste and health,
to make people happy

the no. 1 contact manufacturer
in the health and beauty field

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23

02 Mid term Business Plan 2026

24

Mid-term Business Plan 2026: Basic Policies
Promoting three basic policies as we move toward the Achievement Stage• Renewing growth in the Domestic Beverage Business• Reformulating our international business strategies• Strengthening and developing non-beverage segments
2019

2022

2027

2030

[Profit image]Decline in profit due toinvestment strategy

Plan

Business as usual

Mid-term Business Plan 2026
Platform-strengthening andinvestment stage

Growth stage

Achievement stage（From FY2019 to FY2021）（From FY2022 to FY2026）（From FY2027 to FY2029）

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25

Mid-term Business Plan 2026: KPIs
We aim to recover our ability to generate cash flows in the vending machine business and invest in, anddevelop, the healthcare sector
Sales growth rate(CAGR)

Consolidated operating profit ratio

Consolidated ROIC

*Currency Neutral* Invested capital is the amount
put into in the business segments

4%＋3%▍Trends in cash flows from operating activities

6%▍Growth image
Net sales(Billions of yen) ●Domestic Beverage Business（Excluding home shopping sales ofsupplements）●International Beverage Business●Non-Beverage Businesses
Light color：FY2021(Estimate)
Middle color：FY2026
Dark color：FY2029*The size of each circle represents operating income
Estimate

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ROIC

26

Mid-term Business Plan 2026: Basic Policies
Based on the three basic policies, we aim to expand the value we offer to achieve the goals of Group Mission 2030
Renewing growth in the Domestic
Beverage Business

Reformulating our international
business strategies

Strengthening and developing nonbeverage segments Achieving sustainable growth by
evolving our business model• (Vending machine channel) Expand
the number of vending machines andcreate stronger brand power for the
DyDo shop concept to increase
vending machine profitability• (Vending machine channel) Develop
smart operations to reform ourrevenue structure and expand these to
all our vending machines• (Distribution channel) Creating added
value to establish a unique position

 Expanding existing businesses• (Turkish business) Secure new water
sources and increase plant facilities toexpand our mineral water and export
businesses• (Chinese business) Expand locallymade products to grow sales andprofits
 Reformulating our business strategies• Investigate business structure thatenable flexible business expansion• Start investigating new business areas
 Cultivating global brands• In addition to expanding exports ofproducts made in Japan specificallyfor overseas markets, develop
products in cooperation with DyDo
DRINCO (Domestic Beverage
Business) to cultivate global brands

 Domestic Beverage (home shopping
sales of supplements): Maximize salesof our core product “Locomo Pro” anddevelop another follow-on product Pharmaceutical-related: Raise plantutilization rates and further strengthen
our quality control system Food: Create business opportunities in
new sales channels and productcategories
 Other: Develop our orphan drug
business

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27

(1) Renewing growth in the Domestic Beverage Business/
Domestic Beverage BusinessResult of the 2021 plan

Increased no. of vending
machines (our sales base)Developed smart operations
to increase productivity■ Trends in vending machine numbers■ Proportion of direct sales sites

Improved ease of working
by introducing new workstyles


Introduction of remote working andflextime systems
Introduction of second job system for
employees/welcoming of second job
applicants▐ Next step
Maximizing per machine sales and theeffectiveness (in terms of speed and scale) of
our smart operations▐ Where, and what, we want to be▐ Material issues

In the vending machine market, we will provide new value through constantly taking onchallenges and co-creating and so continue to lead the industry▐ Strategy

the 2026 plan Ensure a firm competitive advantage in the vending machine market• Expand the number of vending machines• Lengthen the average service life of vending machines• Quickly roll out smart operations to all direct sales and to the Kyoeikai* Develop and provide delicious products for mind and bodyKPI
FY2026
 Investigate new business opportunities
The number of vending machines Compared to FY2021:+ 5.5%
 Develop personnel and our organization to promote businessCompared to FY2021:
Sales per vending machine+ 8％
growthCompared to FY2021:
Sales per person*
 Help bring about a recycling-oriented society and reduce+ 20％
greenhouse gas emissions alongside growing our business*A vending machine operations staff*Vending machine operators in whom we have no capital investment relationship (in principle) and who are responsible
for some DyDo vending machine operations, particularly in more rural areas

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28

(2) Reformulating our international business strategies/
International Beverage BusinessResult of the 2021 plan

Grew the Turkish business

Put in place an organizational
structure for the Turkish business Construction of an original sales
network with an eye on making
the Turkish business a wholly
owned subsidiary, which wascompleted in March 2021
 Integration and new constructionof manufacturing plants (3 innorthern Turkey, 2 in the south) Establishment of export bases(UK and Russia)▐ Where, and what, we want to be▐ Material issues

Began local production in the
Chinese business
Withdrew from the Malaysianbusiness▐ Next step
Reformulating our business model toallow us to respond to foreign exchange
rate fluctuation risks and to rapidchanges in consumer needs

We will create global brands that support the health of people all over the world▐ Strategy

the 2026 plan
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 Expand and stabilize the Turkish business• Grow sales in Turkey and abroad, particularly by expanding the mineral water business (securing new
water sources and establishing new plants)• Strengthen our resilience against foreign exchange rate fluctuations by increasing the role of exports inour business Steadily grow the Chinese business
KPI
FY2021
FY2026• Expand local manufacturing to grow sales and profits
CAGR
Turkey11%• Raise awareness of DyDo DRINCO’s health brands in the
Chinese-speaking region (including Hong Kong and Taiwan)
China
23%
 Develop global health brands
Proportion of foreign sales
9%28%• Turkey: Develop new products within Europe that meetin the Turkish businessgrowing demand for mineral water and health products• Asia: Expand sales of sugar-free tea and the “DyDo Blend Series”

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(3) Strengthening and developing non-beverage segments /Home shopping sales of supplements (Domestic Beverage Business)
Result of the 2021 plan

Established a fixed position for our
main driver, “Locomo Pro”

Maintained high growth since
becoming profitable on a yearlybasis in FY2018
CAGR（3years）*As home shopping sales of supplements are

currently being developed by DyDo DRINCO,
they belong to the Domestic Beverage Businesssegment for accounting purposes.

28%▐ Next step
Maintain and expand the number of
repeat customers and improve theeffectiveness of our advertising inacquiring those customers▐ Where, and what, we want to be▐ Material issues

We will continue to provide products and services that always exceed expectations as a close
partner to health-conscious customer so they can treasure fulfilling lives after retirement▐ Strategy

the 2026 plan Continuously improve the acquisition rate for repeat customers and satisfaction levels• Improve the Group’s understanding of our customers to enhance the effectiveness of our online andoffline advertising, and continue to invest appropriately in advertising• Strengthen our CRM measures and improve our online store to increase satisfaction levels among repeat
customers
 Develop products that give consideration to materials used and overall balance• Develop a follow-on product after “Locomo Pro”
 Evolve our fulfillment* capabilities based on our business strategies*Receiving orders, processing payments, inventory management,
logistics, and other processes up to after-sales follow-up.
At DyDo DRINCO these are each outsourced

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KPI
No. of active repeat customers

FY2026Compared to FY2021:+ 110%

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(３) Strengthening and developing non-beverage segments /Pharmaceutical-related BusinessResult of the 2021 plan

Expanded production capabilities
with the new Kanto Plant

Constructed new assembly lines
for pouch containers at Nara
Plant and received steady orders

150
million
Kanto
Plant

350
million

Nara
Plant

Annual manufacturing capability
for drinkable preparations (bottles)▐ Where, and what, we want to be▐ Material issues▐ Next step
Improve utilization rates and further
strengthen the quality control system

We will be the no. 1 contract manufacturer in the health and beauty field▐ Strategy

the 2026 plan

 Raise utilization rates at Kanto Plant and strengthen our quality control system to establish a system with which we can achieve theindustry’s best high-quality, but mass-produced, products• Strengthen sales activities to secure large-lot orders and improve utilization rates at Kanto Plant• Begin full-scale operations at Kanto Plant and establish an optimized production system that includes Nara Plant
 Reformulate our revenue structure• Review sales and development methods to raise the number and percentage of products being launched• Reduce costs for materials bought in, and improve cost structure for manufacturing, sales, administrative, and other expenses
 Develop personnel
KPI
FY2021
FY2026• Hire and develop personnel to strengthen the management system• Develop the middle management that will be responsible for opening Approximate number of contracts
320 million
400 million
up new specialist fields
Compared to FY2021: Improvement *• Establish an evaluation system that supports taking on the challenges Utilization rates*The actual number isn't disclosedof creating new products and dosage forms
31
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(3) Strengthening and developing non-beverage segments /Food BusinessResult of the 2021 plan

Raised productivity at our plants

Improved profitability by conducting a
multi-faceted review of tasks and costs

Developed new high-added-value
products

 Trends in productivity (no. of products/work hours)
Contributed toincreased profitability▐ Next step
Create business opportunities in newsales channels and product categories▐ Where, and what, we want to be▐ Material issues

We will utilize our fruits and jellies to pursue great taste and health, to make people happy▐ Strategy

the 2026 plan
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 Ensure our business foundations are solid by continuously reviewing our production and supply systems• Raise manufacturing precision and reduce labor demands by updating equipment• Improve distribution efficiency to achieve stable supplies• Make our management of supply and demand more accurate Fiercely defend our top share and challenge ourselves to expand to new business sectors• Protect our top share of the dry jelly market by strengthening our ability to develop products• Acquire new sales channels by expanding into new product
KPI
FY2021
FY2026categories and strengthening our export business
Units manufactured per hour Compared to FY2021:+15％• Create demand in sectors related to fruits and jellies
 Develop personnel
Compared to FY2021:
About half
Product loss rate*• Promote diverse working styles and tie that in to increased
Overseas sales ratio
5.8%
7.8%
work efficiency*The actual number isn't disclosed• Utilize diverse personnel and support individual training32

(3) Strengthening and developing non-beverage segments/
Orphan drug Business（Other）
Result of the 2021 plan

Acquired the rights to commercialize
new drug discovery seeds in Japan

Hired specialist personnel
Established an organizational structure

We have signed twolicense agreements
DYD-701：LCAT-GMAC (genetically modified
human adipocyte of LCAT)DYD-301：Pharmaceutical for Treating
Lambert-Eaton Myasthenic Syndrome▐ Next step
Acquire license agreements for new
drug discovery seeds and receive
approval to manufacture and sell
DYD-701 and DYD-301

We will produce medicines for patients suffering from orphan
diseases for which there are currently no treatment options▐ Strategy▐ Where, and what, we want to be▐ Material issues

the 2026 plan
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 Make steady progress with developing the seeds of two new drugs (DYD-301 and DYD-701) inJapan and aim to receive approval to manufacture and sell them
 Aim to acquire license agreements in Japan for new orphan drug candidates seeds
 Establish an information-sharing systems that ensures the following for new drugs for which wehave acquired manufacturing and sales approval: quality guarantees, stable supply, safety
information gathering, and appropriate usage. Then we can offer them to medical institutions andpatients

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Financial Discipline and Investment Strategy/Capital Allocation
We aim to raise capital productivity and maintain a stable financial base
▐ Financial discipline▐ Investment capital▐ Capital allocation
Focused reinvestment to ensure a competitive
advantage in the vending machine business:

ROIC

5-year accumulated

cash flows:＞ WACC

60 billion yen or more・ Vending machine-related assets

About 42 billion yen
・ DX promotion (updates to core systems)
About 4.5 billion yen
・ Other equipment investment, etc.
About 9 billion yen

For shareholders, we aim to maintain stable dividend payouts
and as performance improves, become able to raise dividends

Net cash position:

Strategic investment for
M&A, etc.

Maintain equity ratioof around 50%

Up to 2 years’ worth

Our strategic investment aimed at dramatic growth involves
making appropriate investment decisions on a case-by-case basisof operating cash flow

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34

Mid-term Business Plan 2021: Summary
We are laying a path back to a trajectory of renewed growth so as to progress to the Achievement Stage(1) By renewing growth in the Domestic Beverage Business, we are improving our ability to generate cash flows(2) We are rebuilding the strategies that guide our business activities overseas as we move toward the Achievement Stage(3) In non-beverage sectors, we are developing new businesses (like DyDo Pharma) from a long-term perspective alongsidestrengthening our existing businesses▐ KPI▐ Growth image
Net sales(Billions of yen)
●Domestic Beverage Business（Excluding home shopping sales ofsupplements）●International Beverage Business●Non-Beverage Businesses

Sales growth rate(CAGR)*Currency Neutral

Light color：FY2021(Estimate)
Middle color：FY2026
Dark color：FY2029

Consolidated
operating profit ratio

+3 %

4%

Consolidated ROIC*The size of each circle represents operating income*Invested capital isthe amount put into
in the business segments

6%

ROIC
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