Management Strategies
ITO EN Group Mission
Health Creation Company
Create healthy and fulfilling lifestyles for customers and a sustainable societyThe ITO EN Group is committed the “Health Creation Company” which “creates healthy and fulfilling lifestyles for customers and a sustainable society” as its mission in society. Serving as background is the Group’s history of having created a culture of consuming sugar-free tea beverages every day, through efforts to keep with the times and bring to production of green tea that has taken root as a health beverage in Japan since ancient times.
Long-Term Vision
Global Tea Company
Connect to the cultures of tea around the world and broadlyshare taste and value as a tea specialist
Unique × Value Creation × Global
Unique
A unique business model and technological development capabilities, from product manufacturing from tea plantations to resource recycling
Value Creation
Contributing to the physical and mental health of customers and solving social and environmental issues through various tea products and business activities.
Global
Enabling tea, which is enjoyed all over the world, to evolve to support the mental and physical health of people around the world.
Philosophy System
Medium- to Long-Term Management Plan (FYE4/2025 – FYE4/2029)
Overview
The ITO EN Group has improved profitability and increased its overseas sales ratio by solidifying its business foundation in Japan and concentrating capital on its main brands. However, since the previous Medium-Term Management Plan (June 2022) was formulated, the management environment has changed beyond expectations, including increased prices, exchange rate fluctuations, global instability and changes in the market environment. Therefore, on the occasion of the 60th anniversary of the Company's founding, the ITO EN Group has set out its vision (future vision) for the fiscal year 2040 (FYE4/2041) as a milestone on its journey to becoming a Global Tea Company, and in June 2024 formulated its new Medium-Term Management Plan.
Approach to the New Medium-Term Management Plan
Under the Medium-Term Management Plan (running from FYE4/2025 to FYE4/2029), we will promote the accelerated development of business to realize our future vision for the fiscal year 2040. The ITO EN Group's mission is to create healthy and fulfilling lifestyles for customers and become a "Health Creation Company." Guided by our newly formulated Medium-Term Management Plan, we will continue to work to promote the physical and mental health, the health of society, and the health of the planet, contributing to the creation of healthy and fulfilling lifestyles for customers and a sustainable society.
The ITO EN Group Future Vision
Overseas, in approximately 2040, tea consumption is expected to grow due to the growth of the population, economic development, and increasing health consciousness. On the other hand, a decline in tea consumption and production is expected due to a decrease in the population caused by a declining birthrate and the aging of the population, labor shortages, and the depopulation of rural areas. Amid these expected environmental changes, the ITO EN Group will strive to contribute to the creation of healthy and fulfilling lifestyles for customers and a sustainable society through our tea-centered business activities in more than 100 countries and regions in the world by approximately 2040.
Future Vision of the ITO EN Group in 2040
Roadmap
In the Medium-Term Management Plan (running from FYE4/2025 to FYE4/2029), in particular we recognize that Oi Ocha is entering its second stage toward our goal of becoming a Global Tea Company, and the Group will work together to accelerate its global branding in countries around the world and expand the number of countries where we sell the product to over 60. In addition, in the existing businesses in Japan, we will implement structural reforms to respond to changes in the environment and build a business structure that emphasizes profitability for the first two years, and aim to achieve a consolidated operating income ratio of 8% or more.
Roadmap for the Medium-Term Management Plan (FY2024-FY2028)
Five Key Strategies
In the Medium-Term Management Plan (running from FYE4/2025 to FYE4/2029), we have updated and expanded the content of the five key strategies set out in the Previous Medium-Term Management Plan without changing the basic framework. Particularly, in "Developing Oi Ocha into a global standard brand," "Solidifying the existing businesses in Japan" and "Creating new businesses," we will concentrate management resources in growth areas and reform our business structure to adapt to changes in the environment, aiming for sustainable growth and improved profitability. In addition, in "Strengthening the management base" and "Promoting sustainability management," we will achieve both sustainable growth and a sustainable society by strengthening the management base necessary to realize our business strategies and integrating sustainability with management.
5 Key Strategies of the Medium-Term Management Plan
Financial Policy
We have set quantitative targets for the fiscal year ending April 30, 2029 based on our management policy of prioritizing profitability, improving profits and market share, and emphasizing capital efficiency to achieve sustainable growth. We will aim to secure stable cash flows while prioritizing financial soundness, provide stable shareholder returns while investing in future growth, and achieve sustainable growth. In the medium term, we will also strengthen all our products, including Oi Ocha, and restructure our business while responding to the challenges that we foresee, such as the rising cost of raw materials.
5-year Cumulative CF (FY2024 - FY2028)
