The Nisshin OilliO Group,Ltd. Q4 FY2026 earnings call

• Strategic Framework and Vision

  • The new 4-year medium-term management plan is named Value UpX, aligned with the company's long-term Vision 2030 goal of becoming a global top-tier oil and fat solutions enterprise.
  • Growth strategy is structured in three tiers: long-term profit pillar growth strategy, medium-term core growth driver strategy, and foundation strategy supporting stable sustainable growth.
  • The company's core purpose is delivering life energy to all people, focused on creating value tied to three key growth areas: public health, enriched quality of life, and contribution to the food value chain.
  • Value UpX signifies: growth moving from addition to multiplication, innovation created through cross-combination of strategic elements, discovering new solutions to convert challenges into results, and corporate transformation.

• **Core

The provided transcript does not include historical period financial performance data for Nisshin OilliO Group's product segments. Only forward-looking key performance indicator (KGI) targets for the new medium-term plan are provided, as follows:

1. BtoB Segment - Chocolate and Cocoa-Based Oils: Target to raise CBE global market share (weight-based) from 6% (2024 estimated) to 15%+ by 2028, paired with combined chocolate oil and subsidiary Daito chocolate product market expansion.
2. BtoB Segment - Fine Chemicals / Cosmetic Oils: Target to reach 10%+ global market share (value-based, across the entire market including general products) for cosmetic oil products by 2028, focused on high-margin specialty oils.
3. BtoB / BtoBtoC Segment - Functional Oils: Functional oils and functional oil agents sales target of 7 billion yen+ by 2028, up from 2.8 billion yen (2023 actual). Target a 50 billion yen market scale for North American processed and commercial oils by 2030.
4. BtoC Segment - Consumer Edible Oils: Target to grow the total domestic household edible oil market to 190 billion yen+ by 2028, up from 181.6 billion yen (2023 actual), led by value-focused expansion from Nisshin OilliO.

• Full Company Financial Guidance for 2028 (end of the 4-year medium-term plan): 5%+ operating profit margin, 8%+ ROE, 6%+ ROIC, and 28 billion yen operating profit.
• 4-year average operating profit target across the medium-term plan period: 24 billion yen.
• Cumulative 4-year targets: 100 billion yen cumulative operating cash flow, with 90 billion yen total planned investment funded by this cash flow. This represents a large increase from the ~30 billion yen cumulative operating cash flow of the prior 4-year period, and management confirms the target is achievable given recent operating context.
• Longer-term profit margin guidance: Target 7%+ operating profit margin beyond 2028 as growth continues.
• Shareholder return guidance: Target a 40% consolidated payout ratio, with balanced treatment of one-time gains from asset sales between retained earnings and dividends. The company targets stable 8%+ ROE to support returns, with a 10% ROE target for 2030.

• The operating environment now faces amplified uncertainty and disruptions to stable raw material procurement, manufacturing, and product supply, which the company identifies as core structural risk factors to manage.
• Long-term deflation in Japan has ended, bringing changing consumer behavior and new operational constraints for domestic business that require a shift in operating mindset.
• Global cocoa yield declines are creating shifting demand for chocolate fats, requiring adaptive product development and market expansion to address supply volatility.

The Q&A section of the call is not included in the provided transcript.