I n t e g r a t e d R e p o r t 202 1
Fiscal Year Ended March 31, 2021

Introduction

Management Philosophy
MissionThe first step in producing feed is to form an image of the futureof food, in terms of contributing to the sustainability of the
livestock and fishery industries.

VisionWe aim to be a Company that consistently produces food that istrustworthy and exciting to the palate.

Values

We constantly strive to provide solutions that address the needs
and issues of customers and consumers.
To supply our customers with safe and reliable foods in a stablemanner, we conduct thorough compliance with regulations.
We develop highly specialized personnel who can graspchanging trends and constantly tackle challenges.
We sincerely strive to build trust with society throughthoughtfulness, fairness, and humility.
Logo

FEED ONE wants to be a company that is always grateful for the bounty of the good earth, as it contributes
to the world’s food culture through the production and sale of compound feeds.
The FEED ONE logo crystallizes these thoughts, along with the motifs of earth, sea and sun, in a single image.
At the same time, the logo expresses the energy of life (yellow) and the operations by which it grows:
the livestock industry (green) and the fisheries industry (blue).
Enclosing all of these elements in a shape resembling an egg expresses our desire to deliver to customers
a stable supply of safe, trustworthy feeds.

Corporate Slogan

The Source of Deliciousness
The slogan represents our strong commitment to making as many people as possible awarethat feeds are deeply connected with the production of meat, fish, eggs, and dairy products weroutinely eat and that FEED ONE is producing and delivering the feeds to customers every day.

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FEED ONE CO., LTD. Integrated Report 2021

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

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P41-50Contents

03 About FEED ONE
03

History of FEED ONE

05

Business Areas of FEED ONE

07

Financial and Non-Financial Highlights

09 What FEED ONE Aims to Achieve
09

Commitment Statement from Top Management

13

Message from the Vice President

15

Business Vision / Mid-term Management Plan

17

Value Creation Process

19 Strengthening the Foundation for Value Creation
30

Social39

Risk Managemnt / Compliance

Sustainability Policy

33

Corporate Governance40

Quality Assurance

Efforts for ESG/SDGs

37

Management Structure

Environment

38

Message from External Director

19

Business Strategy

23
25
27

41 Data Section

41	Financial Data for the Last 7 Years

43

Financial Summary

45

Consolidated Financial Statemets

49

Company Information

50

Share Information

Editorial Policy

Communication Map
Summary

Integrated Reports (Japanese/English)

Reports for Shareholders(BUSINESS REPORT)

Details

Annual Securities
Reports

Financial Results Briefing
Materials

Corporate Governance
Reports

Sustainability(Web)

FEED ONE CO., LTD. places great importance on
proactive dialogue with stakeholders in all of its
business activities.
The purpose of this report is to report ourmanagement strategies and our business andCSR activities to help readers comprehensively
understand the social and economic value wecreate.
Guideline Used as Reference
The International Integrated Reporting Framework
published by the International Integrated Reporting
Council (IIRC)
Scope of Report

Financial Information

Non-financial Information

The report covers business activities from April 1,2020 through March 31, 2021 (including thecontents of some business activities that started inor after April 2021) are covered.

Integrated Report 2021

02About FEED ONE

History of FEED ONE

Nippon Formula Feed Mfg. Co., Ltd., established in 1929

Kyodo Shiryo Co., Ltd., established in 1946

2014

2015

2016

2017

October 2014

October 2015

March 2016

April 2017

FEED ONE HOLDINGS
CO., LTD. established(business integration)

FEED ONE CO., LTD.
established (fullintegration)
Changed the trade
names of the Group’s
subsidiaries
Launched four new
products of the FEEDONE brand (animal
feed)

Completed theconstruction of anaquatic feed factory in
India

Completed theconstruction of theKitakyushu factory(renamed the Kitakyushu
aquatic feed factory in
April 2020)

October 2016
Launched FIBEGEAR
DROP, a patented
product

03

FEED ONE CO., LTD. Integrated Report 2021

November 2017
Began shipping fullyfarmed Pacific bluefintunaAbout FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

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P41-50The FEED ONE Group was established in 2014 through the integration of Kyodo Shiryo Co., Ltd. and Nippon Formula
Feed Mfg. Co., Ltd., two long-established companies.
FEED ONE has continued to enhance its corporate value by combining the strengths that the two companies had
accumulated since their foundation.
Since its foundation, the Company has contributed to the development of the livestock and fishery industries by
delivering products and services to customers under the FEED ONE brand, drawing on the strengths of the twocompanies.
The Company will continue to take on new challenges for providing food security and the enjoyment of eating toultimately contribute to the sustainable development of the industry, society, and planet.

2018

2019

2020

July 2018

February 2019

April 2020

Started analysis services
for raw milk fatty acidcompositions

Magic Pearl Co., Ltd.
established through the
integration of two
affiliated companies

Feed One Foods Co.,
Ltd. established throughthe integration of FEED
ONE’s meat businessand two affiliatedcompanies

Started analysis services
for dairy cattle genomes

July 2020
Completed theconstruction of theKitakyushu animal feedfactoryP
U
E
Completed the construction of the Kitakyushu
S
CLO
animal feed factory in July 2020
FEED ONE’s next-generation solutions contributing to
SDGs
The Kitakyushu animal feed factory provides manufacturing solutions
that combine systems with people, products, and information to
maximize the efficiency and productivity at production sites, with afocus on IoT, energy saving, and labor saving. Those solutions will
help achieve the sustainable development goals (SDGs).
We have implemented tablet terminals for operating andcontrolling manufacturing facilities, thereby increasing the mobility of
the factory, and automatically detecting malfunctions. As a result, thetime required for restoring manufacturing operations has shortened.
In addition, we have installed cutting-edge 24-hour unmanned automated shipping facilities andconsolidated workspaces into one floor, which resulted in a 30% improvement of the workforce efficiency
compared with the old factory.
We also aim to reduce the factory’s energy consumption by 30% by linking these cutting-edge facilities andsystems and properly controlling the amounts of electricity and steam for each process.
The new factory is designed to serve as a next-generation factory contributing to SDGs that is friendly topeople and the environment.

Integrated Report 202104

About FEED ONE

Business Areas of FEED ONE
FEED ONE operates in three business segments. The feed business deals in animal, lab animal, aquatic, andbeekeeping feeds. The food business delivers meat, eggs, and marine products; and the other businesses include
the sale of livestock and fishery equipment and the real estate leasing business.
As the most reliable partner of customers, FEED ONE aspires to become a leading company that contributes tothe sustainable growth of the industry.

Feed Business

Animal Feed, Aquatic Feed, Lab Animal Feed, Beekeeping Feed

We leverage the technologies and development skills we have accumulated
over many years to provide safe and reliable feeds tailored to the needs ofcustomers, which contribute to improving customers’ productivity.
Animal Feed
We provide safe and reliable feeds, primarily for poultry, pig, andcattle, which help solve problems at production sites and address
differentiation needs based on experiments at our facilities andanalyses of field data.

Total operating profit(inner circle)

5.6 billion yen
76%

Fiscal yea
March 31

94%

Aquatic Feed
Fish are essential to Japan’s food culture. A lot of fish are farmed.
We deliver high-quality formula feeds indispensable for aquaculture byleveraging the technologies we have long accumulated as a pioneer inthis field.

Lab Animal Feed
In animal experiments, nutritional factors are one of the important factors that havea great impact on experimental animals. We produce feed for those animals bystrictly managing processes, ranging from the purchase of raw materials, blending,
granulation, storage, analysis to transportation.

Total sales

214.

Beekeeping Feed
We manufacture substitute pollens which are supplied during the building-up period when it is desired
to increase the number of bee larvae or when there is not much pollen, as well as beekeeping sugar
when there is not much nectar, supporting beekeeping businesses and contributing to thedevelopment of the beekeeping industry.

Overseas Businesses
In Vietnam, the world’s seventh largest country in terms of the number of pigs
raised, we manufacture and sell animal feed primarily for pigs. In India, theworld’s second largest country in terms of aquaculture production volume, wemanufacture and sell aquatic feed.
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FEED ONE CO., LTD. Integrated Report 2021

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

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P41-50Food Business

Purchase, Production, Processing, and Sale of Livestockand Aquatic Products

2%

We have built an integrated food value chain, spanning from production tosale of meat, eggs, and aquatic products as three pillars of our business.

23%
4%

Food BusinessWe manufacture and sell products meeting the needs of ourcustomers through a nationwide network of affiliated companies
processing meat, those processing and distributing eggs, andthose producing marine products.

ar ended
1, 2021

Livestock Farm BusinessWe own an affiliated company farming eggs in Kyoto Prefecture
and other affiliated companies farming pigs in Aomori and Iwate
Prefectures to produce safe and reliable eggs and pork.

1%(outer circle).1 billion yen

Other Businesses

Sales of Livestock and Fishery Equipment

Besides feeds, we make proposals related to the environment of livestock barns.
Livestock and Fishery Equipment
We not only sell feeds but also propose solutions tailored to customers’ requests such as pre-mixed feeds, construction
materials for livestock barns, and a variety of supplies, materials, and equipment.

Integrated Report 2021

06

About FEED ONE

Financial and Non-Financial Highlights
Financial Highlights
Sales

Sales volume of formula feed

(Million yen)(Thousand metric tons)

214,120
212,886
207,920
215,050
207,562

Capital Expenditures / Research andDevelopment Expenses
Capital expenditures (million yen)
Research and development expenses (million yen)

7,934 8,120
3,577 3,581
3,384 3,423 3,475

6,448
5,033
3,811

2017.32018.32019.32020.32021.3Operating Profit / Operating
Profit to Sales

5,414

2017.32018.32021.3746

752

2017.32018.32019.32020.32021.3

4,657

6,081
3,937

4,466

4,438
3,842

2,971

2.6
2.5

2020.3

747

Profit attributable to owners of parent (million yen)
ROE (%)

5,737
4,103

804

Profit Attributable to Ownersof Parent / ROE

5,131

1.9

2019.32020.3

Ordinary profit / Ordinary
Profit to Sales

4,123
2.5

1.8

2019.3

5,672

4,831

2.3

2018.3

Ordinary profit (million yen)
Ordinary profit to sales (%)

Operating profit (million yen)
Operating profit to sales (%)

3,706

2017.3751

2021.32017.32.0

2.1

2018.32019.3

2.7

2.8

13.7

13.5
9.4

2020.32021.32017.32018.32019.310.3

11.0

2020.32021.3

Non-financial Highlights
Number of Employees

Number of New Graduates Hired
Male
FemaleMale
Female

116

129

531

509

137

140

139

496

508

508

Turnover Rate
(%)

11

3.6
8

3.0

2.9

20
4
5

17

3
14

2.6
2.1

11

7

2017.32018.32019.32020.32021.3*The numbers above include full-time employees,
contract employees, part-time employees, rehired
employees, and temporary employees.

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FEED ONE CO., LTD. Integrated Report 2021

2017.32018.32019.32020.32021.32017.32018.32019.32020.32021.3*The figures above represent the rates of employees
who resigned for personal reasons, except full-time
employees who have reached their retirement age.

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

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P41-50Free Cash Flow

Equity Ratio

Debt to Equity (D/E) Ratio(Million yen)(%)(times)10,886
4,684

38.3

37.8

2017.32018.3

40.5

42.3

0.59

42.6

0.49

0.38

1,748

1,745

0.55

0.53

(6,347)2017.32018.32019.32020.32021.32019.32020.32017.32021.32018.32019.32020.32021.3

Dividend Payout Ratio

Dividend Per ShareTotal Shareholder Return

(%)

(yen)

(%)

15.00

29.8
22.5

2017.325.6
19.0

2018.32019.32020.322.2

2021.3

Average Overtime Working
Hours Per Month
Hours worked in excess of contract-based
standard working hours
Hours worked in excess of statutory working hours

4.50

4.50

4.50

5.00

2017.32018.32019.32020.3

Number of Days of Paid Leave andSummer Vacation Taken Per Year
Average number of days of summer vacation taken
Average number of days of paid leave taken

11.3
10.1
10.6

8.0
8.9

2017.32018.32019.32020.36.9

2021.3

157

2017.32018.3171
140

2019.32020.32021.3

Participation Rates for Stress Check
Tests and Health Checkup
Participation rate for stress check tests (%)
Participation rate for Health checkups (%)

99.8 100.0 99.8

11.1

92.6

90.0

7.3

96.7

75.1
60.1

6.5

*Overtime working hours worked by full-time employees in
non-management positions, contract employees, part-time
employees, and rehired employees*Data on hours worked over statutory working hours is available
from the fiscal year ended March 31, 2021, the year when the
Company began aggregating it.

186

2021.3*The dividend of 15.00 yen per share for the fiscal year ended
March 31, 2021 is the sum of an interim dividend of 2.50 yen
and a year-end dividend of 12.50 yen. Effective October 1,
2020, the Company carried out a consolidation of shares inwhich five of the Company’s common shares were consolidated
into one share. As a result, the interim dividend is the amount
before the share consolidation (12.50 yen if the shareconsolidation is taken into consideration), and the year-end
dividend of 12.50 yen is the amount after the shareconsolidation (the annual dividend per share is 25.00 yen if theshare consolidation is taken into account).

12.8
10.5

167

2.5

2.6

2.7

2.8

2.9

2017.32018.32019.32020.32021.3*Full-time employees, contract employees, part-time
employees, rehired employees, and temporary
employees

2017.32018.32019.32020.32021.3*Full-time employees, contract employees, part-time employees,
rehired employees, and temporary employees*The head office has been aggregating participation rates forhealth checkups data since the fiscal year ended March 31, 2019.

Integrated Report 2021

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What FEED ONE Aims to Achieve

Commitment Statement from Top Management

As a company that
supports the supply ofsafe and secure foodproducts, we willcontribute to society by
expanding the range ofvalue we offer.

Takashi Yamauchi
Representative Director and President

What do you think about thesignificance of FEED ONE, andhow the Company should build
relationships with society?
Feed is essential for the production of meat, fish, eggs,
and milk, which are major sources of protein for humans.
Although its presence is not prominent in our daily lives, it
plays a major role upstream in the food value chain. Our
main business is the production and sale of animal feed
and aquatic feed, and we are also involved in the sale oflivestock and marine products such as meat and eggs.
We are proud to say that our efforts support the supply ofsafe and secure food from the very core.

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FEED ONE CO., LTD. Integrated Report 2021

Our management philosophy is based on threepillars—Mission, Vision, and Values. In addition to
pursuing our Mission, which is to contribute to thesustainability of the livestock and fishery industries, and
Vision, a company that consistently produces food that istrustworthy and exciting to the palate, we adhere to our
Values by constantly striving to grow as a company thatlives up to the trust of society through emphasis on
thoughtfulness, fairness, and humility while working
closely with consumers and farmers.
Our slogan, “Oishisa no Minamoto,” which means“the source of deliciousness,” expresses our desire todeliver rich food value through our value chain.
The Company was established in 2014 as a result of
the business integration of Kyodo Shiryo Co., Ltd. andNippon Formula Feed Mfg. Co., Ltd. The management

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

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P41-50philosophy that I mentioned was established at that timeas an expression of the ideal state of the Company in the
future. Before the business integration, the twocompanies had completely different corporate cultures,
even though they operated within the same industry, but
as a result of the integration, they were able to restructure
their businesses and integrate their corporate cultures in
an ideal way, and as such, the Company has sinceachieved steady growth.
As we moved along this path, we placed particularimportance on communication with our stakeholders.
Communication includes consulting-based sales activities(consulting sales) to solve the problems of livestock andfish farmers, who are our direct customers, creation ofbusiness partnerships with product distributors and raw
material suppliers, dissemination of information to theshareholders and investors who support our business,and pursuing IR activities, and various contributions wemake to build relationships with local communities that
also connect us with consumers. Regarding our
employees, who are the lifeblood of the Company, weemphasize dialogue with each and every one of them andfocus on creating attractive workplaces through workstyle reform and health and productivity management.
By expanding such communication and continuing tosupport the supply of safe and secure food, we have built
a relationship of trust with society.

In the current market
environment, what are FEED
ONE’s strengths and where doyou see opportunities for growth?

safety and security. Post-COVID, meanwhile, inbounddemand will likely recover and exports of livestock andmarine products are expected to increase.
Our share in the animal feed market was second only
to JA Zen-Noh (the National Federation of Agricultural
Cooperative Associations) in terms of sales volume infiscal 2020, and we have the largest share amongcommercial (i.e., non-agricultural cooperative) players.
In addition to enjoying a favorable balance in terms of
livestock species (poultry, pigs, and cattle) due tosynergies from the integration of the two companies,
another of our strengths is that we introduced an areabusiness division system in 2019, which has greatly
improved production and sales efficiency. In FY2019 andFY2020, we set record highs for ordinary profit for two
consecutive years. Differentiating factors in thecompetitive environment include our introduction ofadvanced technologies in the development of animal feedthrough technological exchanges with overseas
manufacturers, and our support of farmers throughconsulting sales to ensure that their needs are met.
Looking at growth opportunities in the market
environment going forward, our animal feed business isenjoying favorable conditions, including the rising prices
of imported livestock products and the trend of
consumers’ preferences returning to domestic livestock
products. In the aquatic feed business, while natural
catches have declined, aquaculture has maintained acertain level of production, and this trend is expected tocontinue to strengthen. To meet this demand, in 2017 webuilt one of Japan’s largest aquatic feed factories in thecity of Kitakyushu in Fukuoka Prefecture, and in 2020 weconstructed a new animal feed factory in the same
location to expand our capacity.

At present, the COVID pandemic negatively impacts themarket environment for livestock and marine products.
With inbound demand, which had been growing
significantly prior to COVID, now almost zero, and thefood service industry having been plagued with businessrestrictions or orders to shut doors temporarily,
consumption remains at a low level, and demand
continues to decline due to such factors as the suspensionof school lunches. On the other hand, with people
spending more time at home as they refrain from goingout and performing more work remotely, the consumptionof food at home has been increasing. Moreover, growing
preferences for domestically-produced food are leading
to a rise in demand for home-cooked meals.
The impact of the COVID pandemic aside, mediumto long-term negative factors include a shrinking market
due to a declining domestic population and an aging
society with fewer children, a decrease in the number offarmers, and an increase in inexpensive imported
livestock products. Nevertheless, demand for domestic
livestock and aquaculture products is climbing due tochanges in food preferences and concerns about foodIntegrated Report 2021

10

What FEED ONE Aims to Achieve

Commitment Statement from Top Management
Our food business is building an integrated food value
chain that supplies feed to farmers, buys distinctive typesof meat and eggs, and processes and sells them. In
addition, our Magic Pearl seasoned boiled eggs havebeen penetrating the market, and we will continue toprovide valuable products through the development ofsuch brands.
Our Vietnamese operation for animal feed and Indian
operation for aquatic feed, both of which are part of ouroverseas businesses, have turned profitable in recent
years. Despite the current stagnation due to the impactsof the COVID pandemic, the two countries have seen
markets for livestock and marine products continue toexpand against the backdrop of rising living standards.
Future business growth can be expected.

Please outline the direction ofyour new three-year mid-term
management plan and yourfuture growth strategy.
Yes, we have begun implementing our third mid-term
management plan, “Make the leap! 2023” (FY2021 to
FY2023).
Looking back at the changes we have seen over theyears, which formed the background to the new plan, ourfirst mid-term management plan (FY2015-FY2017) was
designed to fully integrate the two merged companies,
while reorganizing our asset portfolio through the

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FEED ONE CO., LTD. Integrated Report 2021

restructuring of affiliated companies, and theestablishment of the Kitakyushu aquatic feed factory to
put in place a structure that would enable us to focus on
our core business. And under our second mid-term
management plan (FY2018-2020), we invested in theconstruction of the Kitakyushu animal feed factory andthe maintenance of facilities at other factories. We alsoachieved results from the introduction of the areabusiness division system, strengthening our businessbase and improving profitability. Our food businessreorganized its operations with the aim of boosting
profitability. Specifically, our meat business established
Feed One Foods Co., Ltd., and our egg business
implemented reforms to consolidate all related operations
into Gold Egg Corp. and Magic Pearl Co., Ltd. Under thethird mid-term management plan, “Make the leap! 2023,”
we will fully utilize our reinforced business base to unlock
our earning power, as we aim to build a corporate
structure that will deliver sustainable growth and further
expand our earnings. And we will finalize the businessintegration in the final year of the plan, which will be the10th year since the business integration.
Under the current mid-term management plan, we
aim to achieve ordinary profit of 6.2 billion yen, ROE of
9%, and sales volume of 3.78 million metric tons of feedin FY2023. ROE is set to decrease from the current 11%,
but this is because we expect to make capital
investments worth 10.5 billion yen (over three years) andalso incur increased depreciation expenses for the
Kitakyushu animal feed factory. Ordinary profit of 6.2
billion yen is a somewhat conservative target, too, but it isbased on the assumption that the reserve for the FormulaAbout FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

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P41-50Feed Price Stabilization Fund* will increase and we willproactively make capital investment.
As basic strategies for achieving these targets, we willfurther enhance the profitability of animal feed, andaccelerate the growth of aquatic feed, the food business,and the overseas businesses.
Our animal feed business, the core business, will
expand production lines, mainly for cattle feed, in regions
where demand is expected to grow. We will also boost
sales volume by providing total consulting solutions
including the feed specifically for automatic milking andgenome analysis services for dairy cows, making full use
of cutting-edge technologies.
We have positioned the aquatic feed business, thefood business, and the overseas businesses as growthbusinesses. The aquatic feed business will focus ondeveloping low fish meal and fish meal free feed that willcontribute to the sustainable development of the fisheries
industry and capture the growing demand foraquaculture. The food business plans to expand therange of our consumer products and increase theproduction of popular goods in order to meet growing
consumption from staying at home in the wake of the
COVID pandemic. A major challenge for the overseas
businesses is to bring the businesses into the black sothat all expenses, including administrative costs, are morethan offset by revenues. In Vietnam, we have focused on
the production and sale of the country’s first flake feedwith a high digestibility and absorption rate for cattle andare planning to expand our production capacity. In India,
we aim to turn the business around over the next three
years by resuming efforts to expand sales to major
aquaculture companies, which we had suspended due tothe COVID pandemic, and by improving productivity andcurtailing costs.
Although earnings from our growth businesses, which
are the aquatic feed business, the food business, and theoverseas businesses, have remained unstable relative totheir sales, we are determined to establish thesebusinesses plus the animal feed business as four pillars of
profitability by implementing a range of measures for
improving their profitability and accelerating their growth.
*The Formula Feed Price Stabilization System is a system under which farmers,
manufacturers, and the government set aside funds to mitigate the impact of rising
formula feed prices on the livestock business. If certain conditions are met, farmers
will be compensated under the system.

What’s your stance on ESG
management and the SDGs, andwhat action are you taking in
those areas?

SDGs (Sustainable Development Goals) is essential to ourcontinued existence as a company, and we are actively
pursuing these initiatives across the Group, led by the
ESG Committee, which comprises members from eachdivision.
Animal feed has a sustainable aspect in that it makes
effective use of food byproducts as raw materials, butthere are still social issues to be resolved, such as foodloss. In addition to making more effective use of suchmaterials, we are also conducting R&D on feed that helps
reduce cattle burping, as this is a source of methane. And
in the area of aquatic feed, we will focus on protecting
natural resources and preventing marine pollution throughthe development of low-fish meal and fish meal-free feeds
and the promotion of our fully-farmed Pacific bluefin tuna
business. To supplement these efforts, we are
implementing a variety of measures to reduce greenhousegas (GHG) emissions, with a goal of achieving net-zero
CO2 emissions by FY2050.
Regarding social issues, we have sought to prosper inharmony with local communities through dietaryeducation workshops at schools and the promotion ofsports. Furthermore, as part of our efforts to create
comfortable workplaces, we have also focused on
facilitating women’s participation. Specifically, we are
increasing the ratio of female employees, developing
systems for childcare leave and shorter working hours,
and providing support through training programs. Having
to adapt to the COVID situation, we have also madesubstantial progress with work-style reform, which we
had already been pursuing for some time. As such, more
and more employees are taking advantage of theschemes for telecommuting and staggered work hours.
In order to strengthen corporate governance, we are
increasing the ratio of external directors, so as to undergo
monitoring and receive recommendations from outside
perspectives, thereby increasing managementtransparency while revitalizing the Board of Directors.
External directors also participate in meetings, such as
Executive Committee meetings and Group strategy
meetings, and actively contribute to the enhancement ofour value as an enterprise in discussions regarding theformulation of mid-term management plans. They also
serve as members and chairpersons of the Nomination
and Remuneration Committees, and thus play a role inensuring the effectiveness of governance.
As a leading commercial manufacturer of formula
feeds, we will continue to lead the industry and expand
the scope of our value offerings through comprehensive
and global business development. In the future, we willfurther raise the level of importance of ESG management
and SDGs to contribute to the realization of a sustainable
society.

Another basic strategy stated in “Make the leap! 2023” isto “promote ESG management and strengthen ourbusiness platform.” We recognize that addressing ESG(Environmental, Social and Governance) issues and theIntegrated Report 2021

12

What FEED ONE Aims to Achieve

Message from the Vice President

We will achieve sustainablegrowth while maintaining
financial soundness,
improving profitability, andenhancing capitalefficiency.

Takashi Noguchi
Representative Director, Vice President
General Manager, Administrative Unit; incharge of Aquatic Feed Division

Looking back on the period fromthe business integration to thepresent, how do you see thetransformation of Feed One fromyour vantage point as General
Manager of the Administrative
Unit?
In the seven years since the business integration of
Kyodo Shiryo Co., Ltd. and Nippon Formula Feed Mfg.
Co., Ltd., we at FEED ONE have staked our survival on
creating a group management structure and organizationthat maximizes synergies while fusing and blending thetwo companies’ vastly different corporate cultures. By

13

FEED ONE CO., LTD. Integrated Report 2021

eliminating all the shackles, success stories, pride, andfeelings of attachment connected with the old companies,
and tilling a new, uniform soil that will bring about new
growth, we have solidified our position as a manufacturerof compound animal and aquatic feeds with the highest
sales volume among commercial (i.e., non-agricultural
cooperative) players in the sector.
Among the various reforms we have undertaken, themost significant are the reorganization and restructuringof our salesforce and the optimization of our portfolio. To
be specific, we have avoided simply integrating one of thetwo predecessor companies into the existing sales
system of the other and have established a consulting
sales system to support farmers for each livestock
species from a “market-in” perspective in animal feed, ourcore business, and have adopted a regional businessdivision system where each division comprisesAbout FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50subsidiaries, branches, and factories. Regarding ourportfolio, we disposed of underutilized assets, sold somebusinesses, consolidated/eliminated subsidiaries, andreduced the number of shares held for strategic
purposes.
As a result, over the past seven years, we havegenerated 7.1 billion yen in cash through asset disposals
and others, while at the same time making a cumulative
total of 34.9 billion yen in capital investments, including
the construction of two new factories, and reducing ourdebt-to-equity ratio from 1.17 in FY2014 to 0.49 in
FY2020. In addition, cost-consciousness in operations
has taken root in administrative and procurement
departments, creating synergies such as lower fixed
costs and raw material costs.
At the beginning of the business integration, some in
the industry likened the difference in corporate culture
between the two companies to Beauty and the Beast, orin a Japanese context, to “court noble and stray samurai.”
They were concerned about whether we would be able totruly come together, but we believe that our honest
implementation of a merger of equals toward bestpractices has brought us success.
Now, when I look around the Company, I can see that
employees have a strong love for the Company and pridein their work, and that they are deploying their individuality
and acquired expertise to tackle their jobs with energy
and enthusiasm. We also pride ourselves on being an
employee-friendly company, and strive to improve
employee satisfaction through regular employee surveys
as well as exchanges of opinions and meetings involving
management and employees. We will continue to carefully
nurture our relationship with each and every one of ouremployees, and together we will achieve sustainablegrowth and enhance the value of the Company.

Please tell us about your mission
as Vice President and the role
you will play in the future.
I was appointed representative director in this fiscal year,
so I feel an even greater sense of responsibility forsteering the Company’s operations. As for my own
mission for the development of the Company, I recognizethat going forward I will be required to play a key role inputting together management strategies in addition to mylong-standing role of overseeing the Administrative Unit.
Specifically, I believe that my role will be to integratemanagement-accounting and financial-accounting
management, to reconcile our long-term businessstrategy story with our cash-generation story, and toprovide support for sustainable growth. At the same time,
I think that one of the responsibilities of a representative
director is to supervise management as a guardian of
GRC (Governance, Risk, and Compliance) within theGroup. It will also be my job to strengthen talentmanagement so that we can find the right people tonurture as successors for the senior management team.
In addition, as a good partner of President Yamauchi,
I will maintain close communication with him, draw clear
lines of decision-making authority, and step up the speedof management by delegating approval power toadministrative departments.

Please tell us what the key
points are for understanding
FEED ONE’s financial situationand explain the future direction
for the Company.
For many companies, top-line sales serve as an indicatorof growth potential. However, one of the peculiarities ofanimal feed, which accounts for nearly 70% of our total
sales, is that the raw materials make up an extremely highpercentage, approximately 80%, in fact, of the cost. And
this figure is also incredibly volatile, being heavily affectedby market prices of imported grains, exchange rates,
ocean freight charges, and other factors. As a result, inthe domestic market for animal feed, prices are revised
each quarter to reflect changes in raw material costs. Dueto these circumstances, the unit prices of our products
fluctuate from quarter to quarter, and we would likepeople to understand that increases or decreases in oursales do not necessarily mean that our business hasgrown or shrunk.
In addition to ordinary profit of 6.2 billion yen and ROE
of 9%, we have also declared feed sales volume of 3.78
million metric tons as a numerical target for the final yearof the third mid-term management plan, “Make the leap!
2023.” This is because we have identified sales volume
as a KPI for growth potential for the aforementioned
reasons. Also, the Formula Feed Price Stabilization
System results in increases/decreases in the reserve forprice fluctuations, which also affects the setting of profit
and ROE targets.
We intend to strengthen our business platform bydeveloping new technologies and modernizing ourfactories, and to use the funds generated from our corebusiness, animal feed, to invest for further growth.
Investments in feed production facilities take nearly 20
years to recoup, which is considerably longer than typicalinvestment payback periods. Nevertheless, we will bemaking such investments to ensure our growth issustainable. And as part of this effort, we will maintain our
financial soundness and improve our earnings bycontrolling debt levels yet also employing leverage toincrease our capital efficiency.
In this way, we will continue to provide clear
information to shareholders and investors so that they
can understand the business risks arising from thepeculiarities of our industry, business structure, etc. We
will also strive to enhance shareholder returns.
Integrated Report 2021

14

What FEED ONE Aims to Achieve

Business Vision
A leading company that contributes to the sustainable growth of the entire
industry as the strongest partner for our customers
With the animal feed business, the aquatic feed business, the food business,and the overseas businesses as the four pillars of profitability, we aim to
expand profits, set up a value chain with the animal feed business at the core,
to ultimately achieve sustainable growth and increase corporate value.

Aquatic
feed

Overseas

Food

Food
Aquatic
feed

Livestockfarm

Value chain

Livestockfarm

Value chain

Animal feed
Animal feed
Other

FY2015, the first year of thebusiness integration

Revenue
expansion

Other

The animal feed business,
the aquatic feed business,
the food business, and theoverseas businesses willserve as four pillars of
profitability

FY2024Mid-term Management Plan
The Third Mid-term Management Plan: Make the leap! 2023
Role & Basic Policy
term management plan is toincrease profit by fully

GrowthThe role of the third mid-

Basic Policy

Putting the Finishing Touches on Business Integration—To Become a True Leading Company!—utilizing the businessplatform strengthened in thesecond mid-termbuild a further foundation to

FY2018enable sustainable growth.

FY2015First Mid-termManagement Plan
FEED ONE CO., LTD. Integrated Report 2021

FY2023

FY2020management plan and to

15

Make the leap!

Basicstrategies

1 Further strengthen the profitability of “Animal Feed”, which
is a core business
2 Accelerate growth of “Aquatic Feed,” “Food Business,” and“Overseas Business”
3 Promote ESG management and strengthen business platform

Second Mid-termManagement Plan

Third Mid-termManagement Plan

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Quantitative Plan (Consolidated)
We will continue to aim for an increase(Million yen)in the sales volume year by year,

Ordinary profit(Thousand metric tons)

6,200

6,081

6,000

targeting 3.78 million metric tons in theSales volume

4,000

5,800

5,737
5,400

final fiscal year, up 6% from the fiscal

4,466

We also aim to achieve a record
4,000

ordinary profit of 6.2 billion yen in the

3,780

3,700

5,000

year ended March 31, 2021.

3,582

3,580

3,750

3,600

3,473

3,500

final fiscal year, although ordinary profit
will decline temporarily with an increase

3,250

3,000

in SG&A.
00

FY2018(Results)

FY2019(Results)

FY2020(Results)

FY2021(Planned)

Second Mid-termManagement Plan

Sales volume(thousand metric tons)

Sales(million yen)*

Ordinary profit(million yen)

FY2022(Planned)

FY2023(Planned)

Third Mid-termManagement Plan

FY2018FY2019FY2020

FY2021

FY2022

FY2023(Results)(Results)(Results)(Planned)(Planned)(Planned)

3,473

3,580

3,582

3,600

3,700

3,780

212,886

215,050

214,120

215,600

220,400

224,900

4,466

5,737

6,081

5,400

5,800

6,200

*The figures for the third mid-term management plan are calculated based on the results in January through March 2021.

Sales in the Feed Industry
In the feed industry, imported grains account for a majority of raw materials. As imported grains
are susceptible to market conditions and foreign exchange rates, their prices are revised in April,
July, and October every year in line with changes in market conditions and exchange rates.
In extreme cases, the price is raised by more than 10,000 yen per metric ton through aseries of price hikes or lowered by more than 10,000 yen at a time.
These cases suggest that, in the feed industry, sales do not serve as the metrics to measurebusiness growth as sales prices fluctuate significantly depending on the prices of raw materials.
Cost of sales
Sales prices of
our animal feed products

2019

4

5

6

7

8

9

10

2020.3

11

12

1

2

3

2020

4

5

6

7

8

9

10

11

12

1

2

3

2021.3Integrated Report 2021

16

What FEED ONE Aims to Achieve

Value Creation Process

Human capital

Financial capital

Number of employees(consolidated): 933

Issues andPerceptions of theEnvironment

Manufacturing capital

Total assets: 99,251 million yen
ROE: 11%
Net assets: 42,794 million yen

Intellectual
capital
Number of research bases: 4
Number of patents held: 24

Feed manufacturing bases of the Group: 14
factories
Food processing bases of the Group: 11 factories
Farming bases the Group: 12 bases
Aquaculture bases of the Group: 2 bases
Capital expenditure: 8,120 million yen(Fiscal year ended March 31, 2021)

Social Issues
Declining birthrate andaging population
Declining domestic
population
Changes in the
structure ofhouseholds
Responses to climatechangeMeasures to protect
biodiversity
Conservation of
resources
Respect for humanrightsEnhancement ofdiversity

Business Environment

Business Model

Internal
capitalExternal
capitalR&D

Procurement

Management
Philosophy
ESG
Quality
Philosophy Philosophy

Animal Feed
Aquatic Feed

Sales

Manufacturing

Food BusinessAccelerating
participation in TPP/
EPA
Outbreak of infectious
diseases in livestock

Overseas Businesses

COVID-19
Loss of demand frominbound tourists
Changing eating styles
Diversifying consumer
needs

Corporate
GovernanceSocial and Related Capital
Shareholders
Local communities
Suppliers/partner companies
Distributors/customers

17

FEED ONE CO., LTD. Integrated Report 2021

Employee Codeof Conduct

Natural Capital
Energy / water resources

Compliance

Risk
Management

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50

Value Creation

Third Mid-termManagement Plan

Sales volume

Targets for the fiscal year
ending March 31, 2024

metric tons

3.6 million

Sales volume

Ordinary profit

metric tons

million yen

3.78 million

6,200

Materiality
Solvingenvironmental
issues throughbusiness
Creating attractive
workplaces, andprospering inharmony withsociety
Strengthening
governance	Create a resource
recycling society

5,400

Ordinary profit
million yen

	Shareholder return (maintaining stabledividend payment)	Capex (expanding production capacity)

The Group’s
Targets for ESG/SDGs	Make use of sustainable
raw materials to theextent possible
	Reduce environmentalload through delivery ofsustainable feeds
	Save energy and makeuse of renewable energy	Innovate the livestock and fisheries industries
	Preserve theenvironment by reducing
environmental load	Curb climate change
by reducing GHG
emissions	Conserve natural
resources	Reduce marine pollution

	Reduce waste	Transition to low fishmeal and fish meal-freefeeds	Create a comfortable
work environment	Promote the fully-farmed
Pacific bluefin tuna
business	Promote work-stylereform and diversity	Strengthen governance	Create transparent management
	Assure product quality (stable supply of safeand reliable feed and food products)

Bringing reliable food and the enjoymentof eating every day

Business Plan
Fiscal year ending
March 31, 2022

Integrated Report 2021

18

Strengthening the Foundation for Value Creation

Business Strategy
Animal Feed

Business Vision
We will contribute to improving productivity by making effective use of cuttingedge technologies and deliver safe and reliable formula feed tailored tovarying needs at production sites.
To address the issue of GHG emissions, which has drawn attention inrecent years, we will develop technology that helps reduce methane gas fromcattle. Specifically, FEED ONE aims to build new technology that will enable
us to balance methane gas reduction and production performance using its
proprietary methane gas measurement tool and its own research farms.
We will contribute to the development of the livestock production using
formula feed by providing comprehensive supports, including feed
management and disease control services and technical information, so that
customers can operate their livestock businesses in a manner they desire.

Business Overview
We satisfy customers’ needs in a highly customized andexpeditious manner from eight branch offices across Japan.
We also operate 14 factories nationwide (including jointventure factories), producing and selling 3,500,000 metric tonsof animal feed per year. The Kitakyushu animal feed factory,completed in July 2020 and equipped with cutting-edge
facilities, supplies products tailored to the needs of customers.
We also implement biosecurity measures in line with FEEDONE Unified Guidelines on hygiene management across all our
factories to prevent transmission of animal infectious diseases
such as avian flu and swine fever.

Strengths and Challenges
Strengths

Supply products stably from strengthened
production facilities (the newly opened
Kitakyushu animal feed factory and the heatprocessing facilities at existing factories)
Provide products with patented
technologies (e.g., FIBEGEAR DROP) anda feed design service (product strategy)
Facilitate the penetration of advanced
technologies such as genome and raw
milk analyses (customer service)

Challenges

To improve productivity by leveraging IoTtechnologies (new technologies/IoT)
To launch feeds with lower environmentalload (help achieving SDGs)

Performance Review and Future Outlook
Sales Volume of Formula Feed (Animal Feed)
In fiscal 2020, the sales volume increased year-on-year,
despite the negative impact of the outbreak of animal
infectious diseases such as avian flu and swine fever. In fact,
the volume of livestock products produced in Japan increased
during the fiscal year, backed by an increase in household
consumption driven by growing demand from staying at home,while demand from inbound travelers declined amid the
COVID-19 pandemic.
During the third mid-term management plan period, we
aim for a sales volume of 3,677,000 metric tons in FY2023 (up
5% from FY2020), the final year of the mid-term management
plan. We expect that the production facilities strengthened andhigh value-added products launched during the second
mid-term management plan period will help us achieve thesales volume target.

19

FEED ONE CO., LTD. Integrated Report 2021

Sales volume (thousand metric tons)
3,388

3,483

3,486

3,503

3,596

3,677

2019.3(Results)

2020.3(Results)

2021.3(Results)

2022.3(planned)

2023.3(planned)2024.3(planned)Aquatic Feed

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Business Vision
Fish meal accounts for about 40% of all raw materials for aquatic formula
feeds which support the production of farmed fish in Japan. Most of the fishmeal is made from wild-caught fish that were conventionally consideredunsuitable for human consumption. Amid growing concerns about the“protein crisis,” wild-caught fish, used as raw materials for fish meal, may bediverted for human consumption. We will develop sustainable and high-quality
formula feeds that are not dependent on fish meal, and will also strive toensure a stable supply of formula feeds. Further, we will propose the best
possible way of feeding that unlocks the full potential of formula feeds. We will
also make efforts to preserve the environment of fishing grounds by reducing
the emissions of phosphorus, nitrogen, and other substances, thereby
supporting our customers in operating their business.
We will contribute to the development of the aquaculture industry by
developing, producing, and selling safe and secure formula feeds catering to
the needs of customers.

Business Overview
We produce nearly 100,000 metric tons of aquatic formula
feeds per year at the Kitakyushu aquatic feed factorycompleted in April 2017 and other factories, distributing feedto every corner of Japan, from Hokkaido to Okinawa.
High-quality products, including feed for juvenile fish, areexported to countries such as Vietnam and Indonesia via
dealers. Part of the fish farmed using our feed products are
sold to mass retailers and restaurant chains. Nanyo Gyogyo
Co., Ltd. and Kyokuyo Feed One Marine Co., Ltd., affiliatedcompanies of the Company, produce fully farmed Pacificbluefin tuna.

Strengths and Challenges
Strengths

A broad network of factories designed to
produce feeds in various forms, ranging
from granules to large diameter extruded
pellets (EP)Research facilities that can conduct
feeding trials expeditiously using fish, suchas yellowtail and red sea bream
Sale of farmed fish that meet the needs ofproducers and consumers

Challenges

To develop high-quality aquatic formula
feeds not dependent on fish meal
To strengthen the production and supply
capacity to keep up with the growing
demand for formula feeds

Performance Review and Future Outlook
In fiscal 2020, the demand for farmed fish plunged due totemporary restaurant closures in the wake of the COVID-19
pandemic. As a result, the demand for feeds seems to havedeclined about 3% year-on-year across Japan. The sales
volume of our aquatic feed was 98.5% of that of the previous
fiscal year, but the decline was slightly smaller than thenationwide average. Meanwhile, ordinary profit was 76.6% ofthat of the previous fiscal year on the back of the contributionof support funds to fish farmers amid the COVID-19 crisis.
Japan’s Fisheries Agency said in the Comprehensive
Strategy for Turning Aquaculture into a Growth Industry, a
policy document that it prepared in July 2020, that Japan aims
to produce 240,000 metric tons of yellowtail (171% vs. 2020)
and 110,000 metric tons of sea red bream (176% vs. 2020) in
2030, given the growing demand for farmed fish in regions
such as North America and Asia. The numeric targets include
240,000 MT for yellowtail (171% vs. 2020) and 110,000 MT
for sea red bream (176% vs. 2020). This also suggests thatthe demand for aquatic feeds will likely grow in pace with thegrowing demand for farmed fish. We will continue tostrengthen our production and supply capacity to meet thegrowing demand.

Sales volume (thousand metric tons)

85

2019.3(Results)

97

96

2020.3(Results)

2021.3(Results)

103

106

110

2022.3(planned)

2023.3(planned)2024.3(planned)

Integrated Report 2021

20

Strengthening the Foundation for Value Creation

Business Strategy

Food BusinessBusiness Vision
We will contribute to building an affluent and healthy society by ensuring astable supply of foods containing various nutrients. As a leading supplier offormula feed, we will seek materials that are truly high in quality by making
maximum use of our know-how in livestock farming and fisheries anddeveloping products in collaboration with livestock and marine products
farmers. In addition, we deliver not only delicious but also safe and secure
food to consumers so they can enjoy meals that bring both physical andmental wellbeing. To this end, we will build an integrated food value chain
spanning from processing, distribution to sales of products.

Business Overview
Sales from the food business amount to approximately 50.0
billion yen per year, accounting for nearly one-fourth of FEED
ONE’s overall sales. We produce and distribute products thatmeet the needs of consumers across Japan, with the offices
of affiliated companies nationwide, which include meat
processing companies (Feed One Foods Co., Ltd. andYokohama Meat Co., Ltd. ), poultry and egg processing anddistribution companies (Gold Egg Corp., Magic Pearl Co.,
Ltd.), and marine products producing companies (Nanyo
Gyogyo K.K. and Kyokuyo Feed One Marine Co., Ltd.) We
also produce safe and secure pork, and eggs at the Group’s
farms (Nambu Farm Co., Ltd., Daiichi Genshu Farm Co., Ltd.,
Mihono Pork Co., Ltd. and Green Farm Sogo Co., Ltd.)Strengths and Challenges
Strengths

Safe and secure foods that only feed
manufacturers can deliver
Supply products finely tailored to theneeds of consumers as a packer with
manufacturing bases in the areas ofconsumption
Develop high-quality specialty products incollaboration with farmers

Challenges

To expand and renovate production
facilities that are eco-friendly and allow for
effective utilization of resources, as well as
increasing the volume of supply fromthese facilities
To upgrade processed products anddevelop products much easier to use

Performance Review and Future Outlook
In fiscal 2020, FEED ONE’s overall sales slightly declined
year-on-year following the outbreak of avian flu and swine
fever, which made it difficult for the Company to expand
revenues. Nonetheless, production and sales were on thesteady rise. The Group also plans to expand its foodproduction capacity with an eye to increasing the production
volume in the future. In addition, we have begun sellingeasy-to-cook meals and small packaged products to
consumers, whose supply has been expanding.
In Japan, despite the leveling-off of its population, theconsumption of meat and eggs tends to moderately grow.
Recently, with changes in lifestyle, easy-to-cook meals are
preferred more than before. The consumption of meat andeggs per person has been expanding as essential sources ofprotein for the elderly. In fact, the significance of domestically
producing meat and eggs is rising on the back of growing

demand for sources of protein around the world, especially in
China.

Sales (million yen)
49,248 49,791 49,259

2019.3(Results)

2020.3(Results)

2021.3(Results)

53,332 54,868 54,308

2022.3(planned)

2023.3(planned)2024.3(planned)*Sales represent the amount before application of the
Accounting Standard for Revenue Recognition

21

FEED ONE CO., LTD. Integrated Report 2021

Overseas Businesses

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Business Vision
Demand for protein has been increasing year by year in line with the growth of global
population. Livestock and aquatic products, including beef, pork, poultry, milk, eggs, and fish,
are some of the foods that help satisfy such growing demand for protein. Formula feeds are
essential to increased production of these livestock and marine products, as well as toimproving their production efficiency.
We are committed to working with partner companies to contribute to the development of
the livestock and fisheries industries in countries where we operate, especially in Asian
countries where the population is on the rise and the economy has been growing rapidly.
Specifically, we are contributing to the development of the industries by producing and sellingsafe, secure, and high-quality formula feeds in these countries. We will also share the insights
we have gained overseas with customers in Japan in the form of feedback and proposals.
Moreover, we will continue to play an important role in realizing a sustainable recycling
society both in Japan and abroad as we use by-products that are unsuitable for direct humanconsumption, such as soybean meal, fish meal, and rice bran, as raw materials for formula feed.

Business Overview

Strengths and Challenges

In Vietnam, we established KYODO SOJITZ FEED COMPANY LIMITED in
the southern province of Long An jointly with general trading company
Sojitz Corporation in 2011. Since the start of the operation of its factory in
2013, the company has been producing and selling animal feeds forpoultry, pig, and cattle farming.
In India, we established NIPPAI SHALIMAR FEEDS PRIVATE LIMITEDin West Bengal jointly with the Shalimar Group, a leading local poultry
farming company, in 2014. Since the start of the operation its factory in
2016, the company has been producing and selling aquatic feeds for
prawns and freshwater fish.
In Indonesia, we are working on R&D of formula feeds and farming
technologies for fish species in tropical areas in partnership with Nitto
Seimo Co., Ltd. and PT. LUCKY SAMUDRA PRATAMA.

Strengths

High-quality formula feed
production technology
developed in Japan
Product design anddevelopment catering to local
needs
Supply of safe and secure
Japan-brand feed products

Challenges

To further expand business incountries where the demandfor protein is soaring, such as
Vietnam and India
To develop international humanresources with a view toexpanding business overseas

Performance Review and Future Outlook
As a domestic feed manufacturer, we have expanded businessoverseas ahead of peers and have recorded net profits on asingle-year basis both at the animal feed business in Vietnam
and at the aquatic feed business in India.
The formula feed markets will likely expand in line with thegrowing demand for protein in countries, including Vietnam, acountry where the economy has been growing rapidly, andIndia, a country where the fisheries market is huge. Major
formula feed manufacturers based in South East Asia andEurope have expanded into these regions, whereas a large
number of local small- and medium-sized manufacturers
operate there. We, however, still see much room for quality
improvement in their products. We will tap into and expand
sales in these regions, leveraging the high-quality feed
production technologies and brands we have developed inJapan.
We aim to improve our operating performance throughefforts such as upgrading production facilities and expanding

sales areas. We are also committed to contributing to thedevelopment of the livestock and fisheries industries incountries including Vietnam and India by improving the
production efficiency and enhancing the safety of livestock andmarine products.

Business in Vietnam
Sales volume (thousand metric tons)

Business in India
Sales volume (thousand metric tons)

30

187
118
65

82

2019.3 2020.3 2021.3 2024.3(Results) (Results) (Results) (planned)

15

18

16

2019.3 2020.3 2021.3 2024.3(Results) (Results) (Results) (planned)

Integrated Report 2021

22

Strengthening the Foundation for Value Creation

Sustainability Policy

We will promote initiatives
aimed at realizing asustainable society acrossour value chain.

Tsuneo Suzuki
Director, Senior Managing Officer,
Executive Secretary; in charge ofCorporate Planning & Strategy Division
and Quality Assurance Division

What does FEED ONE think
about sustainability? How haveyou incorporated sustainability
into your business operation?
In February 2021, we launched the ESG Committee,
chaired by President Yamauchi. I serve as secretary of thecommittee. In December 2020, President Yamauchi senta message to all employees, announcing the Company’s
ESG Philosophy and Materialities (key issues) in responseto the world’s growing momentum for addressing ESG(Environmental, Social and Governance) issues, SDGs
(Sustainable Development Goals) and sustainability. The
ESG Committee was set up to promote ESG across theentire Company, with executives from business divisions
and the Administrative Unit, as well as the generalmanagers of their respective divisions, as members of thecommittee, and with approximately 60 organizations,
including affiliated companies, making up the subordinate
operating divisions.

23

FEED ONE CO., LTD. Integrated Report 2021

The ESG Committee meets quarterly to decide on
operational policies for ESG/SDGs, and also supports
and manages the progress of related initiatives inbusiness divisions. In addition, the third mid-term
management plan “Make the leap! 2023,” which started
this fiscal year, has set “promoting ESG management andstrengthening the business platform” as one of the basic
strategies, and the committee has ordered each division
to set targets related to SDGs when formulating theirgoals.
Our business, which supports the stable supply ofrich and varied food, will not be viable without theblessings of nature, and we have always been consciousof sustainability in our activities. In recent years, however,
the awareness of climate change risks has been
mounting, and Japan has accelerated its efforts toachieve carbon neutrality by 2050. In the face of thesetrends both in Japan and overseas, we believe that weneed to drive our sustainability initiatives in line with theglobal trends more than ever and actively communicate
such initiatives to stakeholders.

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Please explain the progress of
your initiatives and future
developments with regard to
ESG/SDGs agendas that you areparticularly focusing on.
Our sustainability initiatives are built on the following threematerialities: “solving environmental issues throughbusiness,” “creating attractive workplaces and prosperingin harmony with society,” and “strengthening
governance.” Specifically, we have implemented
sustainability initiatives with the aim of achieving
quantitative and qualitative targets linked to SDGs.
Among the targets related to SDGs set by each division
under the mid-term management plan, we have also
picked up the targets that the whole company should
focus on cross-organizationally and have set them asgroup-wide targets for each fiscal year.
Addressing climate change risks is one of our mostimminent challenges. We plan to disclose the impact ofclimate change on our business activities under the Task
Force on Climate-related Financial Disclosure (TCFD) oran equivalent framework. In the past, we disclosed andreported information related to greenhouse gas (GHG)
emissions on a non-consolidated basis to the Ministry of
Economy, Trade and Industry in accordance with theEnergy Conservation Law, but we will assess suchinformation more precisely and will promote its
visualization, risk analysis, and benchmarking.
We will set GHG reduction targets to achieve carbon
neutrality by 2050 and aim to achieve these targets
through initiatives in each business unit. We, as amanufacturer, have deployed feed factories throughout
Japan, and these factories emit more than 30,000 metrictons of CO2 annually. We have worked to reduce CO2
emissions by curbing energy consumption in the
production process and introducing energy-saving
equipment at each factory, aiming to ultimately achieve
net-zero CO2 emissions by implementing measures suchas introducing renewable energy. We are also involved in
GHG emissions through the food supply chain, from theproduction of raw materials to products. In fact, the entire
food supply chain has emitted a huge amount of GHG
than the total amount emitted by the Company and its
group companies. We, therefore, should implement
effective reduction measures in collaboration withstakeholders in the process of procuring raw materials
and in the development and sale of our products. Morespecifically, we have been striving to utilize alternative raw
materials that do not rely on imported grains and develop
and promote feeds containing fewer substances ofconcern.
GHG emission is not the only issue to be addressed
within the value chain. The depletion of natural resources,
the pollution of surrounding environments, food loss, andhuman rights violations in workplaces are also among
other SDGs issues that we should address. In addition toaddressing these issues, we will build a framework
whereby we can pursue sustainability across the entire
value chain jointly with all stakeholders.
As one of the measures to achieve these goals, weare strengthening our ties with the Ministry of Agriculture,
Forestry and Fisheries (MAFF) and are actively
participating in projects promoted by the MAFF, working
not only with the feed industry but also with the foodindustry. This way, we intend to take the lead in creating amodel of ensuring sustainability for the feed industry.
We also have been making efforts to create attractive
workplaces, prosper in harmony with society, andstrengthen governance. Internally, we aim to create aworkplace where each and every employee can prove
themselves by enhancing our internal systems such as
the systems for human resource development andwork-style reform. We have also focused on compliance,risk management, quality improvement, and quality
assurance to earn the trust of our stakeholders. We will
also continue to fulfill our social responsibility, as a feed
manufacturer, to ensure a stable supply of safe andreliable food.

Please tell us about themeasures you are taking to raiseawareness of and promote theunderstanding and penetrationof sustainability within the
Company.
Within the Company, the ESG Committee conducts
educational activities to foster a corporate culture inwhich each and every employee sees ESG/SDGs
management and the realization of sustainability as
concerns of their own and takes the initiative in
addressing them. The ESG Committee recommends anddistributes reference books to department heads, holds
web-based seminars for all employees, and promotes theunderstanding and penetration of ESG/SDGs andsustainability. To this end, we implement initiatives suchas the “My SDGs Declaration” project, in which
employees declare their commitment to actions related to
SDGs. At the same time, we are promoting efforts to raise
employees’ awareness through participation in grassroots
activities such as volunteering to cooperate in local
cleanup activities and events.
We will continue to take concrete measures to solve
environmental and social issues and accelerate our efforts
throughout the value chain to realize a sustainable society,with all employees working together to come up withvarious ideas, while taking into consideration the need togain the understanding and cooperation of stakeholders.

Integrated Report 2021

24

Strengthening the Foundation for Value Creation

Efforts for ESG/SDGs
FEED ONE’s ESG Philosophy

Framework to promote ESG/SDGs

Our business supports the food value chain

Board ofDirectors

centering on formula feed or the “source of

Executive
Committee

deliciousness,” and it is based on blessings ofnature and social infrastructure. We will strive toearn the trust of all stakeholders by fostering
harmony among humans, society and the

ESG Committee

Secretariat

Chairperson: Representative
Director and President

Secretary: Director,
Senior Managing Officer

environment while acting in accordance with ourmanagement philosophy and code of donduct.

ESG Promotion Team

Office ofthe President

Corporate Planning &Strategy Department

ESG Administration Dept.

FEED ONE’s efforts within the value chain

Raw materials
Realization of a Resource
Recycling Society
E 	Utilization of food by-products

and food loss

Manufacturing
Respect for human rights /Human resources
S 	Work-style reform, health-Conservation of resources /environmental conservation

conscious management,
employee education systems,
children’s visits to parents’
workplaces

E 	Efforts for transition to low fish

Strengthening governancemeal and fish meal-free feeds
E 	Make use of sustainable raw
materials that contribute toconservation of resources

G 	Corporate governanceG 	Employee Code of Conductand compliance framework

Pursuit of quality
G 	Efforts for food quality and safety

25

FEED ONE CO., LTD. Integrated Report 2021

Responses to climate changeE 	Efforts to save energy

Strengthening governanceG 	Enterprise risk management(ERM) activities

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Materialities (key issues)

E

Solvingenvironmental issues
through businessWe strive to solve environmental
issues through our business so
as to have both the Company
and society grow sustainably.
Such efforts include utilizing
food by-products and food loss
proactively when we supply
animal and aquatic feed,
products of our core business.

S

Creating attractive workplaces, andprospering in harmony with society

Having employees have pride in the Company andexercise their abilities forms a foundation for theCompany to provide products and services satisfying
all stakeholders. Based on such a belief, we strive topromote diversity and create an attractive workplacethat is comfortable and satisfying. As a member of
local communities, the Company fulfills its
responsibilities and supports society by seeking toprosper in harmony with local communities andproviding education and making donations tocontribute to the rich and varied diet of local people.

G

Strengthening
governanceIn order to continue to be acompany trusted by society, we
will strive to further strengthen
corporate governance and thesystems for governing the entire
Company and disclose
information appropriately. That
will ensure objectivity andtransparency of management.

Increase positive impact

Minimize negative impact

Producers

Food

Consumers

Contribution to Society

Conservation of resources /environmental conservation

Contribution to Society

S 	Introducing New Technologies inthe Livestock Industry (genome
analysis for dairy cows / feed
specifically for automatic milking)Environmental conservation(conservation of biodiversity)

E 	Fully-farmed Pacific bluefin tunaS 	Dietary education workshops
S 	Support for the Yokohama

Marathon and the WFP’s Walk
the World event
S 	Donations to municipalities andwelfare organizations

E 	Production support for organic

livestock products

Integrated Report 2021

26

Strengthening the Foundation for Value Creation

Environment<Solving Environmental Issues Through Business>
Based on the environmental issues of “climate change,” “resource conservation,” and “environmental conservation—conservation of biodiversity,” FEED ONE will fulfill its social responsibility by actively working to prevent global
warming, conserve biodiversity, and foster environmental awareness among its employees.

Relevance to SDGs

Responding to Climate Change—Efforts to Reduce GHG Emissions
Climate change caused by GHG emissions is said to be
one of the most material environmental issues. As theworld accelerates its efforts to build a decarbonizedsociety under the Paris Agreement adopted in 2015, theGroup has also recognized that addressing climatechange is a top priority and has set a long-term GHG
emissions reduction target of achieving carbon neutrality
by 2050. Although this target is extremely challenging, we
will first promote our current efforts in Scope 1 (directemissions) and Scope 2 (indirect emissions generated byenergy consumption) to the fullest, and contribute toachieving the target through business activities such as

the introduction of renewable energy and thedevelopment of sustainable feed. In addition, we assume
that Scope 3 (other indirect emissions) will account for thelargest share of our overall supply chain, so we will needto collaborate with our suppliers to achieve a drastic
reduction in GHG emissions across our entire business.
We will contribute to the realization of a sustainable
society by promoting collaboration with our suppliers to
reduce GHG emissions throughout our procurement
activities.

Working Toward Net Zero in 2050

CO2 reduction in
production
processes

Action Plans for
Reducing CO2

2050 Target

Installation of energysaving equipment
Utilization ofrenewable energy
etc.

Net Zero
CO2 Emissions

2020
Contribution oftechnologies,
products, andservices to CO2emission
reduction

27

FEED ONE CO., LTD. Integrated Report 2021

2050

Utilization of domestic
by-products as raw
materials
Development of feedwith lower
environmental load
Transition to reduced
fecal volume feed
Complete transition
to fish meal free feedetc.

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Contribution to the Realization of
a Resource Recycling Society

Relevance to SDGs

— Utilization of food by-products and food loss
Some ingredients of formula feeds are by-products, suchas soybean meal and wheat bran, which are generated
during food production. We are helping to recycle food byutilizing those by-products in the feed.
In Japan, a total of 25.5 million metric tons of foodwaste is generated annually by businesses andhouseholds, of which an estimated 6 million metric tons is“food loss” that is still edible but is discarded. We are
already the first company in the industry to use “friedmeal,” which is made by drying and processing food loss
from bentos and other food products generated atconvenience stores among others, as a feed ingredient.
The usage, however, is limited due to logistics and costs,
and the challenge is how to expand it in the future.
In addition to the utilization of food by-products, wewill continue to promote the incorporation of food loss
into formula feeds and reduce food loss by encouraging

food consumption in dietary education workshops, withthe aim of realizing a resource recycling society.

Processing
Oil extraction
plantMilling plant
Starch plant

Shipment

Feed

Manufacturing
by-products

Production

Processing
by-products

Food
loss

Distribution

Production support for organic livestock products

Processing
factory
Processing

Distribution

Relevance to SDGs

— Supply of organic JAS-certified feedWith consumers becoming more health-conscious andsafety-conscious, and with the promotion of animal
welfare, agriculture, forestry, fisheries, and processing
methods that utilize the blessings of nature without relying
on chemical substances such as pesticides and chemicalfertilizers are gaining attention. Agricultural products,
processed foods, feed, and livestock products that are
produced using the power of nature without relying on
chemical substances are called “organic,” and inspection/
certification are performed under the Act on Japanese rocurement of organicPJAS-certified raw materials

Together with our partners in different
countries, we support organic JAS
certification and procure organic feed
ingredients.

Agricultural Standards (JAS Act) to ensure that it ismanaged according to international standards.
We have been supporting the production of organic
livestock products for many years, procuring organic feed
ingredients, and manufacturing organic feed inaccordance with JAS organic standards at the only
factory in Japan that can produce organic JAS-certified
formula feeds. By supporting the production of organic
livestock products, we are contributing to theconservation of the global environment and biodiversity.

 anufacture of organic JASM
certified feed

Kashima Feed Co., Ltd., an affiliatedcompany of ours, is the only factory inJapan that can produce organic
JAS-certified formula feeds.

 roducers of organic JASP
certified livestock products

Through the supply of organic JAScertified feed, we have been promoting
the production of organic JAS-certified
livestock products with producers formany years.
Integrated Report 2021

28

Strengthening the Foundation for Value Creation

Relevance to SDGs

Conservation of biodiversity— Fully-farmed Pacific bluefin tuna
Against the backdrop of increasing global demand forfood, the securing of aquatic resources is becoming
increasingly difficult year by year due to overfishing andillegal operations among other reasons. In order toproperly conserve aquatic resources and promote theirsustainable use, we began research into full-lifecycle
aquaculture of Pacific bluefin tuna in 1986 and succeededin fully farming Pacific bluefin tuna in 2014. Since
November 2017, Kyokuyo Feed One Marine Co., Ltd., anaffiliate of the Company, has been shipping our “HonMaguro no Kiwami TUNAGU,” fully-farmed bluefin tunaproduct.
Although Pacific Bluefin tuna has been fully farmed,
there are still issues to be overcome, such as the low
survival rate of juvenile fish and switching from raw toformula feed. It is said that bluefin tuna requires 13 to 14
kilograms of raw feed to grow by one kilogram. We areconducting research and development of formula feed
dedicated for bluefin tuna from the perspective ofprotecting the ecosystem, conserving aquatic resources,
and avoiding marine pollution caused by leftover feed.

Younglings
Wild
younglings

Adults derived fromwild younglings
Raising for
5 years

Collecting andartificially
hatching eggs

Adults derived from
artificially hatchedlarvaeCollecting andartificially
hatching eggs

Marketablefish

Raising for
5 years

Full-lifecycle
aquaculture
100-300g/fish

100-250kg

About 40kg/fish

100-250kg

Adults derived from
artificially hatchedlarvaePreservation of marine resources

Relevance to SDGs

— Initiatives for development of low fish meal feed and fish meal free feed
Japanese aquatic feed mainly contains fish meal derived
from natural resources (wild fish).
With the growing depletion of natural resources
around the world, the demand for aquaculture isincreasing year by year, and the feed that does notdepend on fish meal is required.
Under such circumstances, FEED ONE is working todevelop low fish meal feeds which maintain good

29

FEED ONE CO., LTD. Integrated Report 2021

breeding performance and we sell many types of low fishmeal feeds.
In addition, we are further promoting low fish meal
and fish meal free feeds by searching for new materials
that can replace fish meal.

SocialCreating attractive workplaces,and prospering in harmony with society
To meet expectations from society and fulfill responsibilities as a corporate citizen, we respect human rights, create
a comfortable environment for anyone to work in, and gives back to society through our business, based on ourmateriality target, “Creating attractive workplaces, and prospering in harmony with society,” aiming for a sustainable
world.

Respect for Human Rights
As we advocate “fairness” in the Values of ourmanagement philosophy, we respect the human rights ofall stakeholders involved in business activities, including
employees and business partners and recognize theimportance of ensuring good labor practices.
Therefore, in accordance with the FEED ONE
Employee Code of Conduct, we require all groupcompanies to conduct sincere business in compliancewith laws and regulations and with respect for humanrights. As a measure to foster awareness of human rights
and harassment, we have held e-learning training
programs each year for the employees of FEED ONE andthe group companies. Such programs include theeducation on power harassment, sexual harassment, anddiversity.

Relevance to SDGs

Excerpt from the Employee Code of Conduct

RegulatorycomplianceWe, as members of our society andthe international community, takeresponsibility for ourselves, comply
with laws and regulations, corporate
ethics, and social norms, and strive
to maintain social order.

Prohibition of
unfairdiscriminationandharassment

We endeavor to eradicate unfair
discrimination, sexual or any otherharassment based on gender,
nationality, age, ethnicity, race,
religion, beliefs, or physicaldisabilities.

Human Resources
FEED ONE puts emphasis on employee education. Based on the idea that a company can grow together with its
employees, we aim to strengthen the organization by developing human resources who will contribute to the Company inthe future.

Relevance to SDGs

Employee education system
Our comprehensive employee education system supports
the growth of each and every employee. It includes
position-based training starting with training for new
employees, theme-based training aiming at acquiring
specific knowledge and skills, or self-development
support.
The position-based training ranges from new
employee training to leader training which targets
employees who are expected to be department heads inthe future. It provides knowledge and abilities required ateach position, such as logical thinking and problemsolving. We also provide subsidies and incentives fortaking correspondence courses or acquiring qualifications
to employees who want to develop and learn bythemselves.

How the education system works

Position-, department-,

OFF-JT selection-, or theme-based
training

SD(Self Development)

Providing support forcorrespondence
courses andself-development

Trinity

OJT

Guiding and training
by superiors
at the workplace

Integrated Report 2021

30

Strengthening the Foundation for Value Creation

 ork-style Reforms, and Health andW
Productivity Management
In order to secure and develop excellent human resources,
FEED ONE is committed to providing an environment that
supports work-life balance for employees by improving thework environment and welfare programs. In particular, we
are actively introducing initiatives such as promoting paid
leave acquisition, introducing reduced working hours,
telecommuting, or a reemployment system, and respecting
diversity, with an aim to create a workplace where
employees can work without anxiety over the long term.
Our system allows a variety of work-styles, enabling
employees to choose their own styles along with theircareers.
We are engaged in health and productivity
management under the leadership of Representative
Director and Vice President Noguchi, as Chief Health
Officer.
Considering employees as the most importantmanagement resource, we aim to improve laborproductivity by maintaining and enhancing the health of ouremployees and keep growing sustainably to be a pleasantcompany to work for. We conduct stationary observations
on KPIs set as indicators of health and productivity
management, aiming to increase employee satisfaction,
improve their work environment and health awareness byimproving the numerical values through a range ofmeasures.

Voice

Relevance to SDGs

What we have been working on for health andproductivity management
	Preventing second-hand smoke by smoking cessation
during working hours, and offering subsidies fornon-smoking outpatient expenses	Operating a health consultation desk that provides
advice or suggestions for further examination from a
professional standpoint by a public health nurse.
	Providing e-learning to improve health literacy
	Regularly delivering health information through in-housenewsletters or monthly columns by public health nurses
	Implementing a walking campaign aimed at resolving
lack of exercise and making exercise a habit	Offering subsidies for interview costs at the EAP
consultation desk	Organizing seminars on health for employees	Introducing no overtime days

Health and Productivity Management KPIParticipation rate for Health checkups
Participation rate Stress check tests
Average hours worked in excess ofstatutory working hours per month
Average number of days of paid leave
taken per year
Average number of days of summer
vacation taken per year

Balancing Childcare and WorkFY202099.8%
96.7%
6.5 hours
11.1 days
2.9 days

Maya Inoue, Office of the President

I took childcare leave for one year from 2020 and returned to work in March 2021. I am
currently applying the company’s short-time working system.
Since my parents do not live nearby, my husband and I take care of our child but
manage to balance childcare and work by additionally using the telecommuting system.
These systems allow us to spend more time with our child and to effectively separate
work and personal time.
The most difficult time to balance childcare and work is when the child is sick andhas to stay at home. The company has a system that allows us to use our partner
babysitter at a discounted price, and we can use it together with telecommuting.
Having the babysitter take care of my child, I can work beside them. We can also takepaid leave on an hourly basis or institutional leave according to our conveniences suchas the nursery school events or our lifestyles. All these provide a flexible working style.
Although balancing childcare and work is hard, I manage it with an extensive support
system as well as the support from my boss and team members.
I believe that the experience of the career design training for young females,
which I took as a new employee also motivates me to continue working.

31

FEED ONE CO., LTD. Integrated Report 2021

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Contribution to Society
FEED ONE, as a member of society, seeks to contribute to the development of the whole society. We believe that
continuing to support the stable supply of food that is indispensable to our daily lives and accumulating activities that are
efficient for the global environment protection or the developments of culture, education, and local communities will earn
the trust of society and lead to prosperity in harmony with society.
Relevance to SDGs

Introducing New
Technologies in the Livestock Industry
In recent years, the shortage of human resources in the
livestock industry has become a serious issue, andexpectations for mechanization, automation, or
digitalization are increasing.
	Developing and selling dedicated feed for automatic
milking system (AMS)The AMS project team formed
in 2015 has worked on farmer
support, including AMS
introduction and management
advice based on AMS data
analysis, as well as thedevelopment of dedicated feed
for AMS, which obtained apatent in 2016 and has been
well received by producers.

Providing genomic analysis service for dairy cows
FEED ONE, which started agenomic analysis service fordairy cows in July 2018, wasthe first domestic feed
manufacturer to introduce theservice. By analyzing DNA,dairy cows’ genetic abilities
such as fertility, milk quality,
disease resistance, and body
shape can be quantified. As aresult, the individual cow’s
performance evaluation, which
previously took three years or
more, has become possible immediately after birth, which
has dramatically shortened the time required for selective
breeding.
In addition, this technology has enabled us to use
analysis results to propose the right cattle feed plans,
which contribute to further improving the production
performance and management of producers.

Relevance to SDGs

 rganizing Food andO
Nutrition Education Activities
We hold food and nutrition seminars for students of thelocal elementary, middle, and high schools, where they
enjoy obtaining correct information about food andlearning about the importance of food through cooking
and eating products of livestock and fishes fed with ourformula feeds.
Formula feed is the “source of deliciousness”
necessary and indispensable for the production of safeand delicious meat and marine products. The aim of ourfood and nutrition seminar, which takes advantage of ourcharacteristics as a formula feed manufacturer, is todeepen consumers’ understanding of the food value
chain linking feed, farms, meat and marine products,
domestic and imported products differences, natural andaquaculture differences, and nutrition.
At the same time, it also aims to enlighten consumers
about the significance of our industry, which they have
few opportunities to be directly involved.
In addition, by passing on this knowledge to young
people, we help them develop skills to choose good foodby themselves and enhance health awareness.
In response to lifestyle changes, we will continuously
consider initiatives that contribute to the rich and varied
diet of the local people, such as utilizing the Web for foodand nutrition seminars.

Integrated Report 2021

32

Strengthening the Foundation for Value Creation

Corporate Governance<Strengthening Corporate Governance>
FEED ONE aims to enhance its corporate value by ensuring more objective and transparent
management as well as further strengthening and improving the compliance framework.

Basic Policy and Framework for Corporate Governance
Basic Policy
The Group regards corporate governance as amanagement priority. Our basic policy is to establish an
optimal management structure to ensure effective,
transparent, and sound management practices to gain
trust of stakeholders including shareholders, customers,
business partners, local communities, and employees,
while striving to increase corporate value.

Governance Framework and Design
The Company appoints External Directors to enhance theBoard of Directors’ risk management framework andensure transparent management, while introducing an
executive officer system and establishing the Executive
Committee, etc. for efficient management. This is forexpediting decision-making and streamlining businessexecution without compromising the enhancement ofsupervisory functions. In addition, we have adopted theBoard of Corporate Auditors system, comprising three
Corporate Auditors including two External Corporate
Auditors to ensure an objective supervision from an
independent position over the Company’s decision on
management and business executions.
The Board of Directors, which is composed of
Directors and Corporate Auditors, makes important

Chairman

Board ofCorporate
Auditors—

Nomination andRemuneration
Committee
MemberMember—MemberMember——Name

Board ofDirectors

Representative Director

Takashi Yamauchi

Representative Director

Takashi Noguchi

Director

Naoki Hatanaka

Title

33

decisions on business executions, and meets once permonth in principle. Furthermore, the Executive
Committee, which is composed of Executive Officers, inaddition to the Board of Directors members, meets atleast once per month in principle to deliberate importantmatters related to the management. The Board of
Corporate Auditors, which is composed of Corporate
Auditors, meets once per month in principle.
In addition, the Company has the Compliance
Committee, the Credit Committee and other committees,
which are composed of Directors in charge, Executive
Officers, and employees to manage risks that may arise
from the business development of the Group and to
discuss important matters. Corporate Auditors, including
two External Corporate Auditors, attend important
meetings and Committees depending on their roles.
The Company also has the Nomination andRemuneration Committee composed of External Directors
and Representative Directors. We follow procedures
designed to ensure objectivity and transparency in thenomination and remuneration of Directors, and theNomination and Remuneration Committee submits a
proposal to the Board of Directors after consultation andrecommendation.
The members of the Company’s major committees
are as below:

Director

Tsuneo Suzuki

Member——Director

Yukihiro Arakida

Member——External Director

Akio Ishizuka

Member—ChairmanExternal Director

Kikue Kubota

Member—MemberExternal Director

Keizo Goto

Member—MemberExternal Director

Osamu Watanabe

Member—MemberExternal Corporate Auditor

Eiichi Yano

Observer

Chairman—

Corporate Auditor

Shunji Saito

ObserverMember—External Corporate Auditor

Isao Tsubaki

ObserverMember—

FEED ONE CO., LTD. Integrated Report 2021

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Skills Matrix
Comprehensively considering the composition of theBoard of Directors to enhance governance, the Company
has appointed members of the Board of Directors asshown in the previous page to fully utilize their skills inbusiness activities.

Corporate
management

Industry
expertise(feed, rawmaterials, etc.)

We will flexibly review the skills of each Director
responding to changes in business and social
environment, to enable flexible corporate management
and ensure appropriate governance.

Marketingand sales

Qualifications
Finance,
International
accounting
Legalaffairsbusiness
andexperience
economics

Academic
research

Directors
External
Directors

Takashi Yamauchi
Takashi Noguchi
Naoki Hatanaka
Tsuneo Suzuki
Yukihiro Arakida
Akio Ishizuka
Kikue Kubota
Keizo Goto
Osamu Watanabe

External Officers Framework / Evaluation of the Effectiveness of the Board of Directors
External Officers Framework
The Company has four External Directors and two External Corporate Auditors.
External Directors
Name

Reason for nomination and expected roles

Akio Ishizuka

Mr. Akio Ishizuka provides appropriate advice and supervision for the
management of the Company, leveraging his experience as a judge and his
expertise in law. In addition, as a lawyer, he is qualified to oversee managementfrom an objective and independent perspective based on an overall grasp ofcorporate society, including laws and regulations. The Company believes that hecan help improve the transparency and reinforce the supervisory functions of its
Board of Directors.
The Company expects that he will play roles in supervising corporate
management from a viewpoint of a legal expert as well as from an objective
position independent of business executors.

Attendance Independent Significant concurrent
positionsat meetings
Officer

17/17

Representative
Lawyer, Nakaurawa
Law Office

Kikue Kubota

Ms. Kikue Kubota has long been engaged in studies in food science and otherfields at Ochanomizu University, where she serves as Professor Emeritus, andhas expertise mainly in the food business of the Company. She also serves as anauditor of a national university corporation. The Company believes that she canprovide helpful advice and suggestions concerning the Company’s overallmanagement from an objective perspective.
The Company expects that she will play roles in supervising corporate
management from a viewpoint of an expert in the field of food business as well
as from an objective position independent of business executors.

17/17

Professor Emeritus,
Ochanomizu University
Auditor (part-time),
Tokyo University ofMarine Science andTechnology
Auditor (part-time),
Tokyo University ofAgriculture

Keizo Goto

Mr. Keizo Goto has experience of working at regional taxation bureaus andserving as Designated Professor at the Graduate School of Economics, Rikkyo
University, and therefore has expertise in finance and economics, etc. The
Company believes that he is qualified to oversee management from an objective
and independent perspective leveraging his experience from serving as a
Full-time Auditor of Japan Freight Railway Company and can help improve thetransparency and reinforce the supervisory functions of the Company’s Board of
Directors.
The Company expects that he will play roles in supervising corporate
management from a viewpoint of an expert in the field of finance and economics,
etc. as well as from an objective position independent of business executors.

13/13 *1—

Integrated Report 2021

34

Strengthening the Foundation for Value Creation

Name

Reason for nomination and expected roles

Osamu Watanabe

Mr. Osamu Watanabe has knowledge of the grain, fats and oils business in which
he was mainly engaged at MITSUI & CO., LTD. He also has work experience inoverseas business and food business, including serving as a corporate officer
and general manager of overseas sales department of a company handling foodproducts. The Company believes that he can help reinforce the management
structure of the Company by providing advice on the Company’s businessactivities from a broad perspective.
The Company expects that he will play roles in helping reinforce themanagement structure of the Company by leveraging his work experience inoverseas business and food business and providing advice on the Company’sbusiness activities from a broad perspective.

Attendance Independent Significant concurrent
positionsat meetings
Officer

— *1

— *2

General Manager, Fatsand Oils and Staple
Food Business
Department, FoodBusiness Unit, MITSUI& CO., LTD.

External Corporate Auditors
Name

Reason for nomination and expected roles

Eiichi Yano

Mr. Eiichi Yano has broad insight on management and finance acquired atfinancial institutions. He has been serving as a full-time External Corporate
Auditor of the Company for four years, during which he has accumulated
knowledge of the feedstuff, livestock, and fisheries industry. Furthermore, he has
also been serving as an auditor at an important subsidiary of the Company andwell versed in management conditions of the Group companies.
The Company expects that he will help further strengthen the audit system
for its businesses by leveraging his wisdom and expertise acquired from acompany-wide viewpoint.

Isao Tsubaki

Mr. Isao Tsubaki possesses expert knowledge and experience accumulated as acertified public accountant and tax accountant. The Company expects that he will
help further strengthen the audit system of its business by incorporating his
experience into the audit system.

Attendance Independent
Significant
at meetings
Officer
concurrent positions

17/17

17/17

— *2

—

Representative Director,
Tsubaki General
Management ResearchCenter Co., Ltd.

*1. The attendance above covers the meetings of the Board of Directors held in FY2020. Director Mr. Goto attended all meetings of the Board of Directors held after heassumed the office of External Director of the Company in June 2020. Furthermore, as Director Mr. Watanabe assumed the office of External Director of the Company inJune 2021, his attendance at the meetings of the Board of Directors in FY2020 is not presented.
*2. The Company has not designated Director Mr. Watanabe and Corporate Auditor Mr. Yano as independent officers because Mr. Watanabe currently works at a business
partner of the Company and Mr. Yano previously worked at a business partner of the Company.
Furthermore, the Company has not set out independence criteria or policies for selecting External Directors and External Corporate Auditors. However, the selection process
follows the independence criteria prescribed by the Tokyo Stock Exchange so as not to cause conflicts of interest with general shareholders.

 valuation of the effectiveness of the BoardE
of Directors
The Board of Directors of the Company conducts asurvey including self-evaluation for all Directors andCorporate Auditors including External Directors andExternal Corporate Auditors on a yearly basis to analyze

and evaluate its effectiveness. Based on these analyses,
we consider that the Board of Directors as a wholefunctions effectively.

Initiatives for enhancing corporate governance / Policy and procedures for nomination
Policy and procedures for nomination
The Company takes into account all the competencies,
attributes and proven track record a candidate possesses
in the nomination of a Director or Corporate Auditor
candidate. In addition, when nominating an External
Officer, we select a person who can provide opinion froman objective perspective.
In line with the above policy, the Company has
established the Nomination and Remuneration

35

FEED ONE CO., LTD. Integrated Report 2021

Committee, which is mainly composed of independent
External Directors, to review the appropriateness of thecandidate screening process and remuneration for
Directors.
The Board of Directors selects candidates for Directoror Corporate Auditor based on the procedures above
including the recommendation at the Nomination andRemuneration Committee.

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50

Basic Design of Officer Remuneration
Basic Policies

considering factors such as position, the achievement rate
against performance targets, division evaluations, the market
environment, and social situations. The payment ratio foreach type of remuneration is determined by the Nomination
and Remuneration Committee, taking into consideration thebalance between the total amount of monetary remunerationand non-monetary remuneration, as well as a comparison
with the remuneration of other companies in the same
industry or companies of similar size.
The index for performance-linked remuneration is theordinary profit in the mid-term management plan of theCompany, in order to clarify the performance evaluation ofeach Director, taking into account a wide range of factors
including changes in the business environment and risks
associated with the operation of equity method affiliatedcompanies. The composition of remuneration is as follows.

In principle, the Company shall consult with theNomination and Remuneration Committee, which ismainly composed of External Directors, regarding theindividual remuneration, etc. for Directors. The
remuneration shall follow a process that ensures thetransparency and objectivity of the procedures fordetermining officer remuneration.
The remuneration shall be designed to be an incentive
linked to short-term performance, based on the midterm management plan, and for the medium- tolong-term enhancement of corporate value.
The amount of remuneration for each position shall notdeviate from that of other companies in the same industry
or companies with similar size, while maintaining a levelthat can secure and maintain excellent human resources.

Reason for the Board of Directors (Nomination andRemuneration Committee) to have judged that thedetails of individual remuneration, etc. for each Director
for the fiscal year under review is in line with the policies

Outline of Details in Policies
Remuneration for Directors consists of monetary
remuneration (fixed remuneration and performance-linked
remuneration) and non-monetary remuneration (stock
remuneration). The remuneration for External Directors
consists of fixed remuneration only. Based on the above
policies, monetary remuneration and non-monetary
remuneration are each calculated by comprehensively

The Nomination and Remuneration Committee makes
judgments by comparing the amount of remuneration foreach position with remuneration of other companies inthe same industry or companies of similar size.

(Reference) Formula for calculating individual remuneration for each Director and the composition ratio thereof
1. Fixed monetary remuneration and non-monetary remuneration
Remuneration is set for each position based on a median of officer remuneration survey data from an external research
institution, which takes into account the size of listed and unlisted companies (sales, number of employees, market
capitalization, etc.).
2. Performance-linked monetary remuneration
The following formula is used to calculate remuneration with the ordinary profit in the mid-term management plan of theCompany as an indicator.
(Formula) Performance-linked monetary remuneration*1 = Base amount + allocation amount: (actual ordinary profit - (ordinary profit in the
mid-term management plan + 100 million yen))*2*3 × allocation ratio by position × evaluation coefficient*1 The maximum of the performance-linked monetary remuneration is 150% of the base amount.
*2 The total allocation to Directors and Executive Officers is 3.5% of the difference between actual ordinary profit and ordinary profit in the mid-term management plan +100 million yen. The allocation amount for Directors for the fiscal year ended March 31, 2020 is 1.7% of the difference stated above.
*3 Performance-linked monetary remuneration is not paid if actual ordinary profit is less than 80% of ordinary profit in the mid-term management plan + 100 million yen.

3. Composition of remuneration
The composition of individual remuneration by position is as shown in the following table. (Rounded down to the nearest
decimal place)
Total amount of remuneration, etc. by officer category, total amount of remuneration, etc., by type, and number of eligible officers

Position

Representative Director
and President
Representative Director
and Vice President
Director, Senior Managing
Officer
Director, Managing
Executive Officer

Actual ordinary profit < (ordinary profit in the Actual ordinary profit = ordinary profit in the
mid-term management plan
mid-term management plan
Allocation amount base amount × 150%
+ 100 million yen) × 80%+ 100 million yen
PerformancePerformancePerformanceFixed
Non-monetary
Fixed
Non-monetary
Fixed
Non-monetary
linkedlinkedlinkedremuneration
remuneration remuneration
remuneration remuneration
remuneration
remuneration
remuneration
remuneration
84%

0%

15%

69%

18%

12%

63%

25%

11%

86%

0%

13%

71%

16%

11%

66%

23%

10%

87%

0%

12%

73%

15%

10%

68%

21%

9%

87%

0%

13%

73%

15%

10%

68%

21%

10%

Integrated Report 2021

36

Strengthening the Foundation for Value Creation

Management Structure

Takashi
YamauchiRepresentative Director
and President

April 1980
April 1998
October 2001
April 2006
June 2006
March 2008
April 2009
April 2012
June 2012
October 2014

Joined MITSUI & CO., LTD.
Head, Feedstuff & Grain Group, Feedstuff &Livestock Division, Food Business Unit
General Manager, Feedstuff & Grain
Department, Feedstuff & Livestock Division,
Food Business Unit
General Manager, Feedstuff & Livestock
Division, Food & Retail Business Unit
Director, Nippon Formula Feed Mfg. Co., Ltd.
General Manager, Food & Retail Planning &Administrative Division, Food & Retail Business
Unit, MITSUI & CO., LTD.
Deputy COO (Chief Operating Officer), Food &Retail Business Unit
Deputy COO (Chief Operating Officer), FoodBusiness Unit
Representative Director and President, Nippon
Formula Feed Mfg. Co., Ltd.
Representative Director and President, theCompanyTsuneoSuzuki
Director

April 1980
June 2009
July 2013
October 2014
April 2017
June 2017
April 2019
April 2020

Joined MITSUI & CO., LTD.
Representative Director and President, San-ei
Sucrochemical Co., Ltd.
Executive Officer, Nippon Formula Feed Mfg.
Co., Ltd.
Senior Executive Officer, the Company
Managing Executive Officer
Director, Managing Executive Officer
Director, Senior Managing Officer
Director, Senior Managing Officer; Executive
Secretary and in charge of Corporate Planning &Strategy Division and Quality Assurance Division

KikueKubotaExternal Director

June 1972
October 1982
April 1999
April 2005
April 2013

April 2016
June 2019
July 201937

Research Associate, Faculty of Education,
Saitama University
Lecturer, Faculty of Home Economics,
Ochanomizu University
Professor, Faculty of Human Life andEnvironmental Sciences
Trustee, Vice President
Professor Emeritus, Ochanomizu University
Professor, Nodai Research Institute, Tokyo
University of Agriculture
Visiting Professor, Kanagawa Institute ofTechnology
Auditor (part-time), Tokyo University of Marine
Science and Technology
External Director, the Company
Auditor (part-time), Tokyo University ofAgriculture

FEED ONE CO., LTD. Integrated Report 2021

Takashi
Noguchi

Representative Director
and Vice President

April 1979
May 2000
April 2006
April 2010
June 2011

May 2012
June 2012
October 2014
April 2019
April 2021

Joined The Bank of Yokohama, Ltd.
General Manager, Kamiooka Branch
Executive Officer
Managing Executive Officer
Director and Managing Executive Officer incharge of Brand Strategy Division, SalesManagement Department, and Operations
Management Department
General Manager, Business Division Head
OfficeGeneral Manager, Brand Strategy Division andSupervisor, Block Business Division Head Office
Advisor, Kyodo Shiryo Co., Ltd.
Director, Senior Managing Officer
Director, Senior Managing Officer, the Company
Director, Vice President
Representative Director, Vice President; General
Manager, Administrative Unit and in charge ofAquatic Feed Division

Yukihiro
ArakidaDirector

April 1984
April 2008
April 2010
October 2014
April 2017
June 2018
April 2019

Joined Kyodo Shiryo Co., Ltd.
General Manager, Kansai Branch
Executive Officer
Executive Officer, the Company
Senior Executive Officer
Director, Senior Executive Officer
Director, Managing Executive Officer; General
Manager, Food Service Unit

KeizoGotoExternal Director

April 1973
July 1998
August 1998
July 1999
July 2000
July 2001
July 2002
June 2005
July 2008
April 2014
June 2020

Joined the Ministry of FinanceDirector, Kanto Shinetsu National Tax Tribunal
Regional Commissioner, Sendai Regional
Taxation Bureau
Regional Commissioner, Nagoya Regional
Taxation Bureau
Deputy Director-General
Deputy General Manager, National Tax Tribunal
Trustee, The Open University of JapanFoundation
Full-time Auditor, Japan Freight Railway
Company
Senior Managing Director, The Financial Futures
Association of Japan
Designated Lecturer (Designated Professor),
Graduate School of Economics, Rikkyo
University
External Director, the Company

Naoki
Hatanaka
Director

April 1981
January 2004
April 2010
June 2012
July 2013
October 2014
October 2015
April 2016
April 2019

Joined Nippon Formula Feed Mfg. Co., Ltd.
General Manager, Sales Department, Kanto
BranchExecutive Officer
Director
Managing Director; General Manager, Feed
Business Unit
Director, the Company
Director, Managing Executive Officer
Director, Senior Managing Officer
Director, Senior Managing Officer; General
Manager, Animal
Feed Business Unit and in charge of Research& Development CenterAkio
Ishizuka

External Director

December 2001 Presiding Judge, Fukuoka High Court
December 2004 Chief Judge, Niigata Family Court
April 2007
Part-time Lecturer, Dokkyo Law School, Dokkyo
University
July 2007
Registered as a lawyer with Saitama Bar
Association
April 2008
Visiting Professor, Dokkyo Law School, Dokkyo
University
June 2011
External Auditor, Nippon Formula Feed Mfg. Co.,Ltd.
April 2015
Part-time Lecturer, Dokkyo Law School, Dokkyo
University
June 2015
External Director, the Company

OsamuWatanabeExternal Director

April 1994
Joined MITSUI & CO., LTD.
December 2006 Deputy General Manager, Produce & Provisions
Division, Kuala Lumpur Branch, MITSUI & CO.
(Asia & Pacific) Pte Ltd
July 2012
Chief, Dongyangguang Business Promotion
Office, Metal Business Department, Mineral &Metal Resources Business Unit, MITSUI & CO.,LTD.
January 2014 Chief, Multigrain Promotion Office, Grain
Business Second Department, Food Business
Unit
April 2017
General Manager, Overseas Sales Department,
Kadoya Sesame Mills Incorporated
July 2019
Corporate Officer and General Manager,
Overseas Sales Department
August 2020
General Manager, Food and Retail Business
Division, MITSUI & CO. (Malaysia) Sdn Bhd
April 2021
General Manager, Fats and Oils and Staple
Food Business Department, Food Business
Unit, MITSUI & CO., LTD.
June 2021
External Director, the Company

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50

Message from External Director

Growing into an industry-leading company byencouraging diverse human resources to fulfill
their potential and building a foothold forsustainable growth, helped by the participation of
all employees and the strongability torespondquickly to issues and needs.

Kikue Kubota
External Director

Corporate Culture of FEED ONE Seen from
External Perspective
I assumed the position of External Director in June 2019,
when the Company had finished the first year of its
second mid-term management plan and the businessfoundation established through the business integration
had started to show positive effects and the earnings
were increasing steadily. Back then, I was impressed by
the confidence and vitality such successful experiences
had brought into the Company and the friendly
atmosphere among employees. Unfortunately, I have notvisited factories and branch offices since the outbreak of
COVID-19 and therefore have had no chance to get close
to employees working in these sites. However, I can feelthe strength, the sense of unity, and the sincere corporate
culture to actively tackle growth strategies throughExecutive Committee meetings and other opportunities.
Looking at the activities of female employees,
however, the percentage of female employees in key
management positions such as department heads andmanagers is far from high, although the Company has
positioned employees as the most importantmanagement resources, has focused on humanresources development, and has promoted health andproductivity management as well as work-style reform. I
believe that creating a workplace where diverse humanresources can play an active role is one of the importantreform agendas for the Company in the years ahead. Asa female director, I would like to closely monitor andsupport such efforts.

Board of Directors and Corporate GovernanceAt the Board of Directors meetings, External Directors arerequested to provide advice on various aspects, and we
strive to provide meaningful advice from a professional
perspective. The key management, including President
Yamauchi and Inside Directors, listen seriously to andreflect our advice in their management decisions. We, as
External Directors, can also deepen our understanding of
the business by participating in internal meetings as
observers and taking courses that employees can take
together.
With regard to corporate governance, the Nomination
and Remuneration Committee, which I have joined as amember, is partly responsible for ensuring theeffectiveness of corporate governance. Four out of six
members of the committee are External Directors, andthe committee is also chaired by an External Director,
which has allowed for objective and fair discussions anddeliberations with an emphasis from an outside
perspective. In the future, it would be desirable to ensure
diversity in terms of the knowledge and experience of themembers of the Board of Directors, and to further
enhance governance.

What we felt when formulating the Mid-termManagement Plan
In the process of formulating the third mid-term
management plan, we held meetings, participatedprimarily by Executive Officers and Directors in charge ofbusiness divisions and the corporate planning andstrategy department, to discuss and actively exchange
opinions all day. We, as External Directors, proposed that
ESG/SDGs be incorporated into the key measures of the
mid-term management plan, and this proposal is actuallyreflected in the plan. I believe that the strong commitment
to full participation and speedy response seen in theformulation of the plan is one of the major characteristics
of FEED ONE. I hope that the consistent implementationof this plan will help establish a foothold for sustainablegrowth. I also hope that the Company aspires to lead theindustry as a company in which diverse human resources
are able to fully demonstrate their abilities.

Integrated Report 2021

38

Strengthening the Foundation for Value Creation

Risk Management
The Group considers factors hindering the achievement of management and business objectives (mid-term
management plans, business plans, etc.) to be risks, and implements measures to prevent those risks frommaterializing. As part of our crisis management, we have formulated a business continuity plan (BCP) to minimize
damage in the event of a large-scale disaster and to ensure that we can continue our business.

Enterprise risk management (ERM) system

Identify risks

In FY2016, the Group launched ERM activities to manage
risks and countermeasures against them on a company-widebasis.
We have established enterprise risk management (ERM)
regulations, and have set up risk management promotion
teams at each business location. Each year, we work tominimize risk and improve operational efficiency throughout
the company by implementing the PDCA cycle of risk
identification, analysis, evaluation, and countermeasure
implementation.

Monitoring/improvement

Respond to risks

Risk Management Activities
We are engaged in risk management activities at a totalof 57 locations nationwide.
At each location, the PDCA cycle for risk management
is implemented through annual self-check.
Regular meetings are held four times a year to share
information on the progress of the measures against risks
and the status of monitoring items.
In addition, reports are submitted to the Executive
Committee twice a year for review by the management
and feedback to related parties.

Activities

Analyze risks

Assess risks

Frequency(per year)

Self-checks

Identify risks
Analyze risks (calculate magnitude,
analyze impact and frequency ofoccurrence)
Assess risks (prioritization)
Respond to risks (develop andimplement countermeasures)

Annually

Regularmeetings

Review self-check results
Incorporate risk management intobusiness plans
Confirm the status of company-widepriority risk responses
Confirm the status of monitoring items

Quarterly

Report to the
management

Company-wide RM meetings, interim
report meetings

Biannually

Training

New employee training, facilitator
training

Multipletimes a year

Compliance
Basic Policy for Compliance
FEED ONE has defined the following “Compliance” actions based on the ”Employee Code of Conduct” in order toenhance its corporate value while pursuing solid and efficient corporate management.
1. Conform to laws and regulations, corporate ethics, and social norms, and strive to maintain social orders
2. Identify problems from client and consumer perspectives, and focus on solving them to enhance corporate value

Compliance Framework
The Company regularly holds meetings of the “Compliance Committee,” which was established by the Representative
Director and President, and investigates and deliberates on various issues related to the Group’s compliance.
In addition, the Company conducts compliance trainings for Directors, Executive Officers, employees, and other staff
to increase compliance awareness, and introduced the internal reporting system, which has an outside attorney, anExternal Corporate Auditor, and the Internal Auditing Division as contact points.

39

FEED ONE CO., LTD. Integrated Report 2021

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Internal Control Basic Policy
The Company has set forth the following basic policies to ensure compliance with laws and regulations and the Articles ofIncorporation by Directors, Executive Officers, and employees in their executing duties:(1) In accordance with laws and regulations, the Articles ofIncorporation, resolutions at the General Meeting of
Shareholders, and internal regulations, the Board of Directorsof the Group shall decide on important matters related to
management, and supervise the execution of duties byDirectors.
(2) To ensure that the Directors, Executive Officers, andemployees of the Group comply with laws and regulations
and promote appropriate corporate activities, the Group shallmake them aware of the “FEED ONE Group Employee Codeof Conduct.”(3) Corporate Auditors shall audit the execution of duties byDirectors, in cooperation with the Accounting Auditor andthe Internal Auditing Division.
(4) The Company shall ensure that the Internal Reporting
System Regulations are recognized within the Group andperiodically report the status of reporting each year to theBoard of Directors of the Company. The Board of Directors
shall conduct follow-up activities on such reports and takenecessary measures to improve the effectiveness of theinternal reporting system. In addition, the Board of Directors
shall evaluate the internal reporting system and continuously
improve the system.
(5) The Board of Directors of the Company shall educate, train,
and familiarize the Group regarding compliance, including theinternal reporting system, and shall assign and train
personnel in charge of compliance who possess thenecessary skills and aptitude.
(6) The Compliance Committee shall decide on matters
including action policies, by investigating and deliberating on
various issues related to the Group’s compliance, and informand instruct the Group, accordingly.
(7) The Group will not engage in any relationship with anti-social
forces that threaten civil society and will never conductanti-social transactions with such forces. In addition, theentire company shall take a resolute stance against suchanti-social forces by closely collaborating with police andother external specialized institutions.

Quality Assurance
Under its management philosophy, the FEED ONE Group pledges that it will “conduct thorough compliance withregulations to supply its customers with safe and reliable foods in a stable manner.” Furthermore, based on thequality philosophy of “being a part of the food chain linking farm to table, we will provide safe, secure, and highquality products and services to meet the expectation and trust of our customers,” we obtain certificates in foodquality and safety to provide safe and secure feed and food products.

Initiatives to Produce Safe and Secure Feed
(Feed Quality Assurance)

In-house quality
management system

For ensuring feed safety, the Company has built a structure to comply
with the Feed Safety Law to manage risks in every procedure. We
constantly improve the quality to meet customer needs by implementing
a monitoring system to check if the quality control process is functioning
well and developing human resources.

Management
Philosophy
Quality
Philosophy

HACCP certification by the Japan
Livestock Industry Association

What is a food chain?
A food chain is a series of steps from primary
production to final consumption. To supply safe
food, measures to improve food safety are required
to be taken thoroughly in the food chain from farmto consumers.

Feed

Producers

Livestock andaquatic products

Food processing
factories andstoresConsumers

Initiatives to ensure safe and secure meat, eggs, and aquatic products(Food Quality Assurance)
The FEED ONE Group provides three core food products—“meat, eggs, and aquatic products.” We confirm that aprocess control of food processing and manufacturing is in place based on HACCP principles, and that products areprocessed and manufactured in a hygienic environment.

Integrated Report 2021

40

Data Section

Financial Data for the Last 7 Years
Fiscal year ended
March 31, 2015*1

Fiscal year ended
March 31, 2016

Sales

167,028

228,903

Cost of sales

149,617

204,769

Selling, general and administrative expenses

14,505

20,641

Operating profit

2,905

3,492

Ordinary profit

2,809

3,734

Profit attributable to owners of parent

1,906

2,308

Total assets

90,827

82,688

Net assets

26,30927,298

Capital expenditures

1,913

3,778

Depreciation

1,492

2,096

Net cash provided by (used in) operating activities

1,176

6,056

Net cash provided by (used in) investing activities(1,484)(2,017)

Net cash provided by (used in) financing activities

600(4,397)

2,178

1,819

Basic earnings per share*2

12.41

11.71

Dividend per share

3.00

4.00

132.14136.84

Operating profit to sales

1.7

1.5

Profit to sales

1.1

1.0

Return on equity (ROE)

9.5

8.7

Return on assets (ROA)

4.3

4.3

Equity ratio

28.7

32.6

Operating results (Million yen)

Cash and cash equivalents at end of period

Per share information (Yen)Net assets per share*2

Financial indicators (%)*1. On October 1, 2014, Kyodo Shiryo Co., Ltd. and Nippon Formula Feed Mfg. Co., Ltd. merged. As a result, the Company was founded as a wholly owning parent company
incorporated in a share transfer, making Kyodo Shiryo Co., Ltd. and Nippon Formula Feed Mfg. Co., Ltd. wholly-owned subsidiaries through a joint share transfer. Nippon
Formula Feed Mfg. Co., Ltd. adopted the business combinations accounting as the acquiring company at the time of foundation. Accordingly, the consolidated operating
results for the fiscal year ended March 31, 2015 (April 1, 2014 to March 31, 2015) represent the combined operating results of Kyodo Shiryo Co., Ltd. and other affiliatedcompanies for the period from October 1, 2014 to March 31, 2015 based on the consolidated operating results of Nippon Formula Feed Mfg. Co., Ltd., the acquiring
company, for the fiscal year.

41

FEED ONE CO., LTD. Integrated Report 2021

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

207,920

207,562

212,886

215,050

214,120

182,917

183,629

189,757

191,401

192,163

20,171

20,22519,005

18,234

16,284

4,831

3,706

4,123

5,414

5,672

5,131

4,103

4,466

5,737

6,081

3,937

2,971

4,657

3,842

4,438

79,90487,082

88,93490,88099,25130,96833,30436,41338,906

42,794

5,033

6,448

3,811

7,934

8,120

1,855

2,370

2,395

2,513

3,157

11,777

9,199

4,842

1,127

7,737

(891)

(7,454)(158)(7,475)(5,989)(10,373)(1,330)(4,937)6,512(1,550)

2,333

2,748

2,492

2,657

2,830

19.98

15.08

23.66

97.64

112.78

4.50

4.50

4.50

5.00

15.00*3

155.20166.86182.90977.82

1,074.63

2.3

1.8

1.9

2.5

2.6

1.9

1.4

2.2

1.8

2.1

13.7

9.4

13.5

10.3

11.0

6.3

4.9

5.1

6.4

6.4

38.3

37.7

40.5

42.3

42.6

*2. Effective October 1, 2020, the Company carried out a consolidation of shares, in which five shares of the Company’s common stock were consolidated into on share. Basicearnings per share and net assets per share are calculated on the assumption that the sahres consolidation was conducted at the beginning of the fiscal year ended March
31, 2020.
*3. Effective October 1, 2020, the Company carried out a consolidation of shares, in which five shares of the Company’s common stock were consolidated into on share.
Accordingly, for the fiscal year ended March 31, 2021, the dividend per share is presented after reflecting the effect of the share consolidation and the total annual dividend ispresented as “–.” If the effect of the share consolidation was not reflected in the dividend, a year-end dividend per share would be 2.50 yen and an annual dividend per share
would be 5.00 yen for the fiscal year ended March 31, 2021.

Integrated Report 2021

42

Data Section

Financial Summary
Operating Results
During the fiscal year under review (from April 1, 2020 toMarch 31, 2021), personal consumption fell and therestaurant industry was hard hit by business restrictions
following the government’s declaration of a state of
emergency due to the spread of COVID-19. However, we
believe the impact on the Group will be minimal mainlywith a rising trend of eating at home.
The Group formulated the Second Management Planfor the three-year period from FY2018 to FY2020
targeting consolidated ordinary profit of 5.5 billion yen in
the final year, while aiming to maximize its profit centeredon four businesses—the animal feed business, theaquatic feed business, the food business and theoverseas businesses. Under the Plan, we have constantly
taken measures to enhance the raw material procurement
and production system, improve product quality andservice, and reduce costs.
During the fiscal year under review, the Group posted
sales of 214,120 million yen, down 930 million yen(Billion yen)

Sales

215.0

Operating profit

214.1

Ordinary profit

106.0%
year-on-year

104.8%
year-on-year

2021.32020.3

Profit attributable toowners of parent

6.0

5.7

5.6

5.4

99.6%
year-on-year

2020.3

year-on-year, mainly due to declines in the sales prices ofanimal feed and egg prices, and an outbreak of avian
influenza.
During the fiscal year under review, selling, generaland administrative expenses decreased 1,950 million yen
year-on-year to 16,284million yen. This was mainly due toa decrease of 1,699 million yen in reserve contributions to
the formula feed price stabilization system, and adecrease of approximately 400 million yen in business
expenses in line with limited activity amid the spread of
COVID-19 pandemic.
As a result, during the fiscal year under review, theGroup posted a record operating profit of 5,672 million
yen and a record-high ordinary profit of 6,081 million,
increasing by 257 million yen and 344 million yen,respectively, from the previous fiscal year.

4.4

3.8

115.5%
year-on-year

2021.32020.32021.32020.32021.3

Factors for changes in operating profit(Million yen)

Food Business-243

Feed Business +529

Decrease
Increasein grossin salesmargin ofvolume ofanimal feed animal feed*

5,414

+182

2020.3

Decrease
Decrease
Decrease
Decreasein SG&A
in salesin grossin SG&A
expenses of volume of
margin of expenses ofanimal feed aquatic feed aquatic feed aquatic feed

+1,811

-42

-131

+58

-1,397

Decrease
Other feed,in profit ofetc.
Food Business

+48

-243

Other,
etc.

-28

5,672
(+258 year-on-year)*The impact of operating the Kitakyushu animal feed factory and the old factoryat the same time from July to September: -290 million yen

2021.3Financial Position
The Group mostly depends on imported raw materials
component (corn, etc.) to manufacture and sell formula

43

FEED ONE CO., LTD. Integrated Report 2021

feed, which is its main product. We therefore face risk
related to highly volatile raw material cost, mainly due toAbout FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50changing crop yields affected by changes in crop plantedareas and weather in locations including the U.S; risingconsumption in China; changing ocean freight costs. We
therefore revise the sales price of animal feed quarterly inline with the fluctuating raw material cost, but thesefactors may have a material impact on the Group’s
financial position and business results.
Total assets at the end of the fiscal year under review
increased 8,370 million yen compared to the end of theprevious fiscal year. This was mainly due to an increase of
4,781 million yen in current assets resulting from anincrease in notes and accounts receivable - trade, and anincrease of 3,409 million yen in property, plant andequipment mainly with the completion of the Kitakyushu
animal feed factory, etc.
Total liabilities increased 4,482 million yen comparedto the end of the previous fiscal year. This was mainly due
to an increase of 6,145 million yen in non-current liabilities
resulting from an increase in long-term borrowings related
to the establishment of the Kitakyushu animal feedfactory.

Net assets increased 3,888 million yen compared tothe end of the previous fiscal year. This was mainly due toprofit attributable to owners of parent, and an increase invaluation difference on available-for-sale securities
resulting from an increase in the market value.
(Billion yen)

Liabilities andnet assets

Total assets

99.2

99.2

Figures in parentheses
indicate year-on-yearchange(+8.3)

Increase in notes
and accounts
receivable – trade(+2.6), etc.

Current assets

Total liabilities

54.8

56.4

(+4.7)(+4.4)(+8.3)
Increase in notes
and accounts
payable – trade(-5.7)

Increase in long-termborrowings(+5.3), etc.

Increase in buildings
and structures(+5.6)

Increase in machinery,equipment
and vehicles(+4.1)

Decrease inconstructionin progress(-6.9), etc.

(+5.1)

Decrease in short-termborrowings

Non-current
assetsIncrease in retained
earnings(+2.9), etc.

Net assets

42.7

44.3

(+3.8)(+3.5)Cash Flows
The Group’s main financing needs are for operating
expenses to manufacture and sell formula feed in the feedbusiness; to nurture, purchase, and sell pigs, etc. in thefood business; to purchase, partially process, and sell
livestock and aquatic products, as well as investing tobuild, renew, and streamline production facilities, etc.
Such financing needs are in principle covered by theGroup’s own funds and loans from financial institutions.
Cash and cash equivalents (hereinafter, “cash”) at theend of the fiscal year under review was 2,830 million yen,
an increase of 173 million yen compared to the end of theprevious fiscal year.
Net cash provided by operating activities amounted to
7,737 million yen (cash inflow of 1,127million yen in theprevious fiscal year) because cash increased mainly due
to the recognition of profit before income taxes, partially
offset by a decrease in cash caused by the payment ofincome taxes.
Net cash used in investing activities amounted to
5,989 million yen (cash outflow of 7,475 million yen in theprevious fiscal year.) This was mainly due to a decrease in
cash for capital expenditure, as in the previous fiscal year,
related with the Kitakyushu animal feed factory completed
in the fiscal year under review.
To finance part of the capital expenditures for the
Kitakyushu animal feed factory, the Company signed aterm loan agreement worth 6.5 billion yen in total in March2018 with a bank syndicate where the Bank of

Yokohama, Ltd. acted as an arranger and agent, and theNorinchukin Bank and Mizuho Bank, Ltd. were coarrangers.
Net cash used in financing activities amounted to1,550 million yen (cash inflow of 6,512 million yen in theprevious fiscal year), mainly due to decreases in shortterm borrowings and in cash for dividend payment,
despite an increase in funds procured from long-termborrowings to invest in the Kitakyushu animal feed factory.

(Billion yen)

Cash flows
fromoperatingactivities+7.7

Cash and cash
equivalents
at beginningof period

2.6

Cash flowsfromfinancing
activities-1.5
Cash flowsfrominvestingactivities

Cash and cash
equivalents
at end ofperiod2.8-5.9
2020.32021.3Integrated Report 2021

44

Data Section

Consolidated Financial Statemets
Consolidated Balance Sheet
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

2,718

2,893

Notes and accounts receivable - trade

31,78934,421

Electronically recorded monetary claims - operating

1,649

1,896

Merchandise and finished goods

1,922

1,917

Raw materials and supplies

10,094

10,384

Animals

291

285

Other

1,692

3,111

(78)

(49)

50,07954,861

19,57325,519

Accumulated depreciation(11,734)(12,042)

Buildings and structures, net

7,838

13,477

Machinery, equipment and vehicles

23,52029,239

Accumulated depreciation(14,852)(16,462)

8,668

12,776

6,666

6,538

437

1,199

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation

(350)

(385)

Leased assets, net

86

814

Construction in progress

7,185

258

Other

2,285

2,202

(1,617)(1,545)667

656

31,112

34,521

Other

391

363

Total intangible assets

391

363

7,364

8,019

Long-term loans receivable

392

348

Distressed receivables

426

411

Deferred tax assets

844

449

Other

692

700

Allowance for doubtful accounts

(423)

(424)

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investment and other assets
Investment securities

Total investments and other assets
Total non-current assets
Total assets

45

FEED ONE CO., LTD. Integrated Report 2021

9,297

9,505

40,80044,39090,88099,251

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50(Million yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

20,34625,544

Short-term borrowings

15,442

9,680

45

132

Income taxes payable

1,311

1,137

Provision for bonuses

752

735

Other

5,952

4,957

Total current liabilities

43,851

42,188

5,860

11,221

Lease obligations

47

762

Deferred tax liabilities

10

10

Provision for retirement benefits for directors (and other officers)

45—

Provision for share awards for directors (and other officers)

67

103

2,063

2,099

Asset retirement obligations

6

5

Other

21

64

8,123

14,26851,97456,457

Share capital

10,00010,000Capital surplus

10,508

10,484Retained earnings

18,23821,197

(115)

(122)

38,631

41,559Valuation difference on available-for-sale securities

2859

Deferred gains or losses on hedges

26

28

Foreign currency translation adjustment

(130)

(109)

Remeasurements of defined benefit plans

(41)

(47)

Total accumulated other comprehensive income

(143)

730

418

504

Total net assets

38,906

42,794

Total liabilities and net assets

90,88099,251

Lease obligations

Non-current liabilities
Long-term borrowings

Retirement benefit liability

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests

Integrated Report 2021

46

Data Section

Consolidated Financial Statements
Consolidated Statement of Income

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Stockpile storage revenue
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Sales discounts
Opening and closing business cost
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Gain on sale of businesses
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Impairment losses
Loss on cancellation of leases
Loss on sale of investment securities
Loss on sale of shares of subsidiaries and associates
Loss on valuation of shares of subsidiaries and associates
Loss on valuation of golf club membership
Loss on closure of plant
Loss on abandonment of inventories
Non-recurring loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent(Million yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

215,050
191,401
23,64918,234
5,414

214,120
192,163
21,956
16,284
5,672

16
159
—
146
7
234
565

17
151
17
140
164
194
685

103
50
24
20
43
242
5,737

99
—
31
94
51
276
6,081

8
106
22
—
—
137

117
32
—
21
535
706

12
44
—
4
0
—
—
—
14
30
—
62
168
5,706
1,977
(111)
1,866
3,840
(2)
3,842

16
90
26
42
—
106
5
8
—
—
18
—
315
6,472
1,950
21
1,972
4,500
61
4,438

Consolidated Statement of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

47

FEED ONE CO., LTD. Integrated Report 2021

(Million yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

3,840

4,500

(528)
27
17

857
2
(5)

(40)

21

(523)
3,316

874
5,375

3,319
(2)

5,313
61

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Consolidated Statements of Cash Flows(Million yen)
Fiscal year ended
March 31, 2020

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Share of loss (profit) of entities accounted for using equity method
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for directors(and other officers)
Increase (decrease) in provision for share awards for directors(and other officers)
Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries and associates
Loss on valuation of shares of subsidiaries and associates
Loss (gain) on sale of businesses
Loss (gain) on sale and retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Loss on valuation of golf club membership
Subsidy income
Non-recurring loss
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
Income taxes paid
Payment resulting from non-recurring loss
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment andintangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable
Proceeds from sale of businesses
Income from subsidies
Interest and dividends received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Interest paid
Dividends paid
Repayments of lease obligations
Proceeds from sale and leaseback transactions
Purchase of treasury shares
Proceeds from sale of treasury shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of period

Fiscal year ended
March 31, 2021

5,706
2,513
4
50
2
102
95

6,472
3,157
42
(17)
(24)
(17)
27

(2)

(45)

37

36

(176)
103
(106)
(22)
—
—
48
—
14
—
62
3,339
(250)
(8,296)14
3,239(2,050)
(62)
1,127

(168)
99
74
5
8
(21)
(10)
26
—
(535)
—
(2,868)(278)
5,198(1,305)9,857(2,120)—7,737(7,356)(7,036)

28

219

(242)
149
1
(448)
271
—
—
179
(59)
(7,475)

(4)
663
12
(305)
293
15
35
180
(64)
(5,989)

6,436
3,933
(2,821)
(106)
(888)
(45)
—
(0)
4
6,512
164
2,492

(6,705)
7,650(1,345)(98)(1,475)
(112)
543
(10)
3
(1,550)
197
2,657

—

(23)

2,657

2,830

Integrated Report 2021

48

Data Section

Company Information
CompanyProfile (as of March 31, 2021)

49

Trade name:

FEED ONE CO., LTD.

Established:

October 1, 2014

Share capital:

10,000 million yen

Head office:Directors and Corporate Auditors(as of June 25, 2021)

Representative Director andPresident

Takashi Yamauchi

Representative Director andVice President

Takashi Noguchi

2-23-2 Tsuruyacho, Kanagawa-ku,
Yokohama-shi, Kanagawa

Director

Naoki Hatanaka

Number of
employees(consolidated):

933

Director

Tsuneo Suzuki

Director

Yukihiro Arakida

Accounting
auditor:Deloitte Touche Tohmatsu LLC

Director (External)

Akio Ishizuka

Director (External)

Kikue Kubota

Fiscal year-end:

March 31
Director (External)

Keizo Goto

Principal
businesses of
the Group:

Production, processing, and sale offeeds; and purchase, production,
processing and sale of livestock andaquatic products

Director (External)

Osamu Watanabe(New)

Corporate Auditor (External)

Eiichi Yano

Corporate Auditor

Shunji Saito

Corporate Auditor (External)

Isao Tsubaki

FEED ONE CO., LTD. Integrated Report 2021

About FEED ONE

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

Data Section

P03-08

P09-18

P19-40

P41-50Share Information(as of March 31, 2021)

Status of Shares

Distribution of Shareholders

Total number of sharesauthorized to be issued

100,000,000 shares

Total number of shares issued

39,477,128 shares

Individuals/
otherFinancial
institutions

20.7%

24.9%

16,851 shareholders

Number of shareholders

Number of shares

Major Shareholders

Foreigninvestors

Number ofshares held
(thousandshares)Ratio ofsharesheld (%)

MITSUI & CO., LTD.

9,838

24.93

The Master Trust Bank of Japan,
Ltd. (Trust Account)

1,924

4.88

Daiwa Kogyo LLC

1,207

3.06

THE KEIHIN CO., LTD.

1,047

2.65

The Bank of Yokohama, Ltd.

981

2.49

Custody Bank of Japan, Ltd.
(Trust Account)

967

2.45

Tokio Marine & Nichido Fire
Insurance Co., Ltd.

857

2.17

The Norinchukin Bank

840

2.13

Asahi Mutual Life Insurance
Company

803

2.04

Yonkyu Co., Ltd.

600

1.52

Shareholder

39,477,128 shares

13.9%

Financial instruments
business operators

Other
corporations

1.0%

39.5%

Notes:
1. The ratios of shares held are calculated after deducting treasury shares (18,501
shares).
2. 105,460 shares of the Company, held by the Custody Bank of Japan, Ltd. (Trust
Account) as trust assets for the “trust for share-based remuneration for directors(and other officers),” are not included in the number of treasury shares.
3. Effective October 1, 2020, the Company carried out a consolidation of shares inwhich five of the Company’s common shares were consolidated into one share,
resulting in a decrease of 157,908,512 shares in the total number of shares issued.

Trend of Share Price(Unit: thousand shares)

Trading volume (left axis)

Share price (right axis)(Unit: JPY)

12,000

1,200

8,000

800

4,000

400

0

17/3

18/3

19/3

20/3

21/3

0

*Effective October 1, 2020, the Company carried out a consolidation of shares at a ratio of one share for every five common shares.

Integrated Report 2021

50

FEED ONE CO., LTD.
2-23-2 Tsuruyacho, Kanagawa-ku, Yokohama-shi, Kanagawa
TEL: +81-45-311-2300
URL: https://www.feed-one.co.jp/english/