Sustainability

Message from CEO

Becoming an Indispensable Presence Worldwide with Delicious and Healthy Food Management for People – Conscientious Management Fuji Oil Holdings Inc. President and CEO Hiroshi Shimizu

Looking ahead to the coming era of disruption, we have begun major reforms with a firm resolve to raise our growth trajectory

Looking around, it would seem that the world has changed dramatically overnight. With the prospect of global population growth, there is a rush to solve problems in areas such as the environment and food. At the same time, society and industry are facing an unprecedented paradigm shift as Industry 4.0 (the fourth industrial revolution) becomes a reality, as exemplified by artificial intelligence (AI) and the Internet of Things (IoT). This is the advent of an era of disruption typified by discontinuous change. What was once common sense no longer applies.

To accelerate our growth strategy with an accurate understanding of these drastic changes, we formulated "Towards a Further Leap 2020," our new Mid-Term Management Plan. Prior to that, we set forth our Vision to contribute to society by creating the future of delicious and healthy foods in the Fuji Oil Group Management Philosophy, which was established concurrently with our shift to a holding company structure in October 2015. A company is a member of society and must continue to create value for society. Through our Group Management Philosophy, we expressed to society our clear and steadfast intention to be of service to people at all times and to be a company with a global presence. Moreover, to ensure we grow steadily as we respond to the major changes of the era of disruption, I am deeply convinced of the need for decisive reforms unlike any we have undertaken before.

Although we set a new record high for profit in FY 2016, we started the new Mid-Term Management Plan with the recognition that we can no longer postpone reforms. From its founding to the present, the Fuji Oil Group has consistently been a trailblazer owing to its innovative ideas and technologies. With this DNA and a historical perspective that looks ahead to the next generation, I am determined to lay the foundation for a new Fuji Oil Group that can envision a path through the next 50 years.

We are vigorously strengthening our global foundation and promoting growth strategies toward "How we want to be in 2030"

"Renaissance Fuji 2016," our previous Mid-Term Management Plan, set forth "How we want to be in 2030" and "How we should be in 2020." "How we want to be" entails growing into a global enterprise that supports consumers’ health and uses its core technologies to become number one worldwide and in each region. Furthermore, "How we should be" in order to become "How we want to be" involves gaining a competitive advantage globally by reforming our cost structure and expanding our global management structure.

However, we realize that we cannot reach "How we want to be in 2030" by simply continuing to grow our existing business at its current rate. The basic policy of the new Mid-Term Management Plan "Towards a Further Leap 2020" is to establish the foundation and create the new businesses necessary to bridge the gap that separates us from our 2030 goal by 2020.

First, without delay we will strengthen our global foundation, which is a prerequisite for being a company that competes throughout the world. Because cost efficiency, speed and localization are crucial for global management, we plan to make management information visible on a worldwide basis, and to vigorously promote enhanced governance and delegation of authority to local operations. Lately, the age when a product’s functions alone gave it value has ended, and the question has become how that product benefits society. Therefore, we will create value together with society through our pursuit of delicious and healthy food using "Kachizukuri" (creating value) that adds the consumer-oriented marketing approach of "Kotozukuri" (creating movements) to "Monozukuri" (creating products), which is the source of our competitive advantage. For our growth strategy, we will continue to advance toward "How we want to be" through reinforcement of our core competence, growth of our soy business and development of business in functional high-value-added products.

Promotion of CSR and discontinuous innovation to become a company that creates the future of foods and contributes to society over the next 50 years and beyond

We believe that creating a culture of change is essential for achieving sustainable growth to become "How we want to be in 2030." The key to doing so is CSR and diversity.

We have adopted "Work for people" as a value that guides our actions in the Fuji Oil Group Management Philosophy and believe that the essence of CSR is responding to the demands of society and people through our core business. Increasing attention is being paid not only to food safety and security, but also to the potential of ingredients in areas such as additive-free and low-allergen foods, nutritional foods for the elderly and medical foods. We will contribute to our customers and to society by providing new value through delicious and healthy food.

As society aims for sustainability, ESG has also become an important management requirement. In particular, we recognize that shaping a corporate culture that makes the most of diversity in areas such as gender, nationality, culture and values leads to multifaceted value creation and helps to make a company more competitive. I am convinced that advancing diversity by promoting the development of a workplace environment that is welcoming to women, seniors, young people and non-Japanese people ultimately leads to work style reform.

In addition, looking beyond "How we want to be in 2030," we established the R&D Division for Future Creation with a belief in the importance of accelerating the development capabilities that are in our group’s DNA. The division will resolutely take on challenging research themes that are not simply an extension of our past endeavors, thus spurring discontinuous innovation that creates new added value. The Fuji Oil Group will press forward with the aim of being a company that creates the future of food – a company that can continue to contribute to society through delicious and healthy food over the next 50 years and beyond.

Hiroshi Shimizu
President and CEO
Fuji Oil Holdings Inc.

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