kikkoman corporation fact book business information fiscal

Kikkoman Corporation

Fact Book

Business Information

Fiscal 2020

1

1. The information in this presentation is based on Kikkoman's best knowledge at the time it was prepared.

This presentation does not constitute a promise or guarantee that the company will achieve its numerical

targets or necessarily implement the strategies outlined.

2. Changes in fiscal year ends etc.

In 2001, Kikkoman changed its fiscal year from January – December to April – March.

Calendar years in this chart, unless otherwise noted before 2001 represent from January to December,

from 2001 onwards represent the fiscal periods from April to March, respectively.

Example. 2000 = January – December 2000, 2019 = April 2019 – March 2020

3. Changes in revenue recognition standard

Certain domestic consolidated subsidiaries have changed their revenue recognition standard for fiscal 2014

onwards.

3

- Others

<Overseas>

- Foods-Manufacturing and Sales - Foods-Wholesale

〔1-1〕 Major Business Activities

<Japan>

- Foods-Manufacturing and Sales

Soy Sauce Food Products BeveragesLiquor and

Wine

Biochemical business, chemicals, logistics and

other businesses

North America Europe Asia & Oceania

Soy Sauce

Asia & Oceania

Del Monte

North America

Other Foods

Sales of oriental food products in Japan and

overseas

4

〔1-2〕 Consolidated Results for Fiscal 2020

Net Sales ：¥ 468,616Unit: millions of yen

Eliminations

-12,624 -7％Others

21,341

11％Foods-

Wholesale

200,249

70％

Foods-Manufacturing

and Sales

96,591

34％Foods-Manufacturing and Sales

179,444

96％

Overseas

284,122

61%

Japan

188,161

40%

Eliminations

-12,718 -4％

Holding Company and Eliminations

-3,667 -1％

5

〔1-3〕 Consolidated Results for Fiscal 2020 (Net Sales by Division)

Unit: millions of yen

Net Sales-Japan ：¥ 188,161 Net Sales-Overseas ：¥ 284,122

Foods-

Manufacturing

and Sales

179,444

96％

Others

21,341

11％

Eliminations

-12,624 -7％

Soy Sauce

49,662 28％

Food

Products

62,046 34％

Beverages

57,467 32％

Eliminations

-180 -0％

Foods-

Manufacturing

and Sales

96,591

34％

Foods-

Wholesale

200,249

70％

Eliminations

-12,718 -4％

Soy Sauce

77,973 81％

Other Foods12,517 13％

Del Monte

6,099 6％Liquor and Wine

10,448 6％

Eliminations

29

0％

6


(Operating Profit by Segment)

Operating Profit ：¥ 39,826 Unit: millions of yen

Others

1,832

14％

Eliminations

-176

-1％

Overseas

28,221

71%

Japan

13,322

33%

Foods-

Manufacturing

and Sales

19,251

68％

Foods - Wholesale

9,147

33％

Foods-Manufacturingand Sales

11,460

86％

Holding Company and Eliminations

-1,717 -4％

7


(Net Sales and Operating Profit by Geographical Segment)

Unit : millions of Yen

Net Sales ：¥468,616 Operating Profit : ¥39,826

Overseas

284,122

61%

Japan

188,161

40%

Japan

13,322

33%

Overseas

28,221

71%

Holding Company

and Eliminations

-3,667 -1％

Holding Company

and Eliminations

-1,717

-4％

North America

Europe

Asia & Oceania

The total of Others and Eliminations within the overseas segment.

19,17968%

4,587 16%

2,490 9%

1,963 7%

208,25373%

5,551 2%

38,902 14%

31,414 11%

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

100

2,572

9

〔2-1〕 Overseas - Changes in Kikkoman’s Soy Sauce Sales Volume

(1974-2019)

Average Annual Growth Rate 1974-2019

7.5%

Source: Kikkoman Data

1974 Sales Volume= 100

Note) Indexed using the 1974 sales volume as 100.

North

America

64% Europe

17%

Asia &

Oceania

18%

Others and

Elimination 1%

100 106 114 121

132 141 151

166 174 185

0

50

100

150

200

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Note) Figures in the table above represent the actual change on a local currency basis, excluding the

translation difference, indexed to consolidated sales in 2010.

10

〔2-2〕 Overseas – Changes in Net Sales of Kikkoman Soy Sauce

and Breakdown of Sales by Region

Average Annual Growth Rate 2010-2019：7.1％

2010 Sales = 100Breakdown of sales by region in

Overseas Soy Sauce Business of

Kikkoman (2019 Sales)

100 100 100

157

217

354

0

100

200

300

400

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

11

〔2-3〕 Overseas – Changes in Net Sales of Kikkoman Soy Sauce

(2010-2019)

Average Annual Growth Rate

(2010-2019): 15.1％Average Annual Growth Rate

(2010-2019) : 5.1％Average Annual Growth Rate

(2010-2019) : 9.0％

North America Asia & OceaniaEurope

Notes)* 1. Figures in the table above represent the actual change on a local currency basis excluding the translation difference, indexed to consolidated sales in 2010.

* 2. (Asia & Oceania) Sales at Kikkoman Shanghai Trading Co., LTD. and President Kikkoman Inc. have been included since 2014.

* 3. (Asia & Oceania) Sales at President Kikkoman Zhenji Foods Co., LTD. have been included since 2016.

2010 Sales = 100 *1

*2

*3

12

〔2-4〕 Overseas – Kikkoman Soy Sauce Production Bases

(As of March, 2020)

（Wisconsin）

Kikkoman Foods Europe B.V.

（Groningen, The Netherlands）

President Kikkoman Inc.

（Tainan, Taiwan）

Kikkoman (S) Pte Ltd

（Singapore）

Kunshan President Kikkoman

Biotechnology Co., LTD.

（Kunshan, Jiangsu）

（California）

President Kikkoman

Zhenji Foods Co., LTD.

（Shijiazhuang, Hebei）

Kikkoman Foods, Inc.

13

〔2-5〕 Overseas – Changes in Kikkoman’s Share of the U.S. Home-Use

Soy Sauce Market (Volume) (2010-2019)

Source: Kikkoman Data Note) Charts and graphs refer to calendar years.

57.7 57.6 56.3 55.5 55.7 56.7 58.0 57.7 57.4 56.6

0%

50%

100%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Kikkoman Brand A Others

41% 41% 41% 40% 40% 39% 39% 38% 37% 39％

46% 46%47% 48% 48% 49% 49% 49% 50%

47％13%13%

12%12%

12% 12%12% 13%

13%14％

0

20

40

60

80

100

120

140

160

180

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Home-use Food service-use Industrial-use

14

〔2-6〕 Overseas – Changes in U.S. Market Breakdown of Sales

for Kikkoman Soy Sauce (2010-2019)


157

100

2010 Sales = 100



100

197

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

15

〔2-7〕 Overseas – Changes in Consolidated Net Sales of Kikkoman’s

Foods-Wholesale Business (2010-2019)

Average Annual Growth Rate 2010-2019: 7.8%

2010 Sales = 100




New Zealand

16

〔2-8〕 Overseas – Locations of Major Group Companies in Wholesale Business

(As of March, 2020)

Locations of JFC Group Companies

▲▲ ▲

▲

▲

▲

U.K.

▲

▲

▲

▲

▲

▲

▲▲

▲

▲

▲

▲

Netherlands

▲

Russia

▲

Brazil

Mexico

U.S.A.

Canada

Australia

Japan

China

Singapore

Malaysia

Thailand

France

Austria

Italy

Germany

Norway

Sweden

▲

UAE

Atlanta

Note) Wholesale bases with an asterisk (*) are bases of JFC International (Canada) Inc.

San Francisco

Los Angeles

17

〔2-9〕 Overseas – Major Production, Sales and Wholesale Bases

in North America (As of March, 2020)

*

Dallas

Chicago

New York

*

FolsomWalworth

*

Honolulu

Production Bases of Soy Sauce

(Kikkoman Foods, Inc.)

Sales Bases of Soy Sauce

(Kikkoman Sales USA, Inc.)

Wholesale Bases

(JFC International Inc.)

Toronto*

Wien (Austria)

18


in Europe (As of March, 2020)

Production Base of Soy Sauce

(Kikkoman Foods Europe B.V.)


(Kikkoman Trading Europe GmbH)

Wholesale Bases (JFC Group)

Moscow （Russia）

Milan(Italy)

Paris(France)

London(U.K.)

Amsterdam

（Netherlands）

Hoogezand

Sappemeer

(Netherlands)

Düsseldorf(Germany)

Oslo(Norway)

Stockholm(Sweden)

Dubai

（UAE）

ShanghaiKikkoman Shanghai

Trading Co., Ltd.

19


in Asia (As of March, 2020)

Hong KongTainan

President Kikkoman Inc.

Singapore

Kikkoman (S) Pte Ltd

Kikkoman Trading

Asia Pte. Ltd.

Kuala Lumpur

Production Bases of Soy Sauce


Wholesale Bases (JFC Group)

Taipei

Beijing

Kunshan

Kunshan President Kikkoman

Biotechnology Co., Ltd.

Shi Jia Zhuang

President Kikkoman

Zhenji Foods Co., Ltd.

Bangkok

KTA（Thailand）Co ., Ltd.

20


in Oceania (As of March, 2020)

Sales Base of Soy Sauce

(Kikkoman Australia Pty. Limited)

Wholesale Bases (JFC Group)Perth

Brisbane

SydneyGold Coast

Melbourne

Adelaide

Canberra Wellington

Auckland

Christchurch

〔2-13〕 Overseas – Del Monte Business in Asia & Oceania

21

SingaporeDel Monte Asia Pte Ltd

Trat (Thailand)Siam Del Monte Company Limited *2

Xiamen (China)

Del Monte Foods (Xiamen) Co., Ltd.*3

Notes) *1. Kikkoman has acquired perpetual marketing rights to Del Monte brand in the Asia-Pacific region(excluding the

Philippines)

*2. Siam Del Monte Company Limited is manufacturing products in Tetra Recart packages.

*3. Del Monte Foods (Xiamen) Co., Ltd. is manufacturing tomato ketchup, chili sauce and other products.

Areas subject to

trademark licensing *1

Production Bases of

Del Monte Products

Sales Base of

Del Monte Products

22

1957 Kikkoman Sales USA, Inc. (present name) was established.

(A soy sauce sales company; California, United States)

1969 Capital participation in JFC International Inc. (present name)

(A wholesale company; California, United States)

1973 Shipments began at Kikkoman Foods, Inc.

(A soy sauce production plant; Wisconsin, United States)

1979 Kikkoman Trading Europe GmbH was established.

(A soy sauce sales company; Düsseldorf, Germany)

1984 Shipments began at Kikkoman (S) Pte Ltd. (A soy sauce production plant; Singapore)

1990 Shipments began at the joint venture, President Kikkoman Inc.

(A soy sauce production plant; Tainan, Taiwan)

1997 Shipments began at Kikkoman Foods Europe B.V.

(A soy sauce production plant; Groningen, the Netherlands)

1998 Shipments began at Kikkoman Foods, Inc.

(A soy sauce production plant; California, United States)

〔2-14〕 Overseas – The History of the Overseas Operations

23

2002 Shipments began at the joint venture, Kunshan President Kikkoman Biotechnology Co.,

LTD. (A soy sauce production plant; Kunshan, Jiangsu)

2006 Shipments began at the joint venture, Siam Del Monte Company Limited.

(A Del Monte plant; Trat, Thailand)

2008 Shipments began at the joint venture, Del Monte Foods (Xiamen) Co., Ltd.

(A Del Monte plant; Xiamen, Fujian)

2009 Shipments began at the joint venture, President Kikkoman Zhenji Foods Co., LTD.

(A soy sauce production plant; Shi Jia Zhuang, Hebei)

2014 Kikkoman Shanghai Trading Co., LTD. was established.

(A soy sauce sales company; Shanghai)

〔2-15〕 Overseas – The History of the Overseas Operations

0

1,000

2,000

3,000

4,000

5,000

6,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Soy Sauce Tsuyu and Tare

25

〔3-1〕 Japan – Changes in Expenditure for Soy Sauce and Tsuyu and Tare inJapanese Family Income and Expenditure Survey

(1992-2019)

(Yen)

Source: Statistics Bureau, Ministry of Internal Affairs and Communications

Note) Charts and graphs refer to calendar years.

26

〔3-2〕 Japan – Changes in Soy Sauce Market (Volume)

(2010-2019)

Source: The Japan Soy Sauce Brewers Association

0

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(1,000KL)

744,000KL


27

〔3-3〕 Japan – Changes in Number of Soy Sauce Breweries

(2010-2019)

(Companies)

Source: The Japan Soy Sauce Brewers Association


800

900

1,000

1,100

1,200

1,300

1,400

1,500

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1,141

0

30.5 30.7 31.2 31.8 32.7 32.7 33.2 33.4 33.6 33.3

0

50

100

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Kikkoman+Higeta A B C D 2nd-Ranked Major Companies Others

28

〔3-4〕 Japan – Changes in Soy Sauce Market Share (Volume) Breakdown

(2010-2019)

Note) Charts and graphs refer to calendar years. Source: Nikkan Keizai Tsushinsha

（％)

29

〔3-5〕 Japan – Soy Sauce Market Share (Volume) Breakdown by Brand

(January–December 2019)

Source: Nikkan Keizai Tsushinsha

Higeta5.1％

Kikkoman28.2％

Kikkoman Group Total 33.3%

A 11.8％

B 6.6％

C 4.0％

D 4.0％

2nd-Ranked Major 9 Companies

16.8％Others23.5％

13.4 13.2 13.9 15.5 17.0 18.6 19.9 20.4 21.0 21.6

24.4 23.9 22.5 21.9 20.4 19.4 18.4 17.3 16.4 16.4

12.0 11.5 10.8 10.1 9.3 8.9 8.4 8.0 7.8 7.5

50.2 51.4 52.8 52.5 53.3 53.1 53.3 54.3 54.8 54.5

0

50

100

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Less than 1L 1L 1.8L, 2L Over 2L

30

〔3-6〕 Japan – Breakdown of Kikkoman Soy Sauce Shipments

by Packages in Market (Volume) (2010-2019)


（％）

8.2 9.2 10.5 11.8 12.5 13.5 14.8 15.1 15.5 15.9

0

10

20

30

40

50

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Less Sodium Others

31

[3-7] Japan – Changes in Component Ratio (Amount) of Less Sodium

Soy Sauce in Home-Use Soy Sauce Market (2010 - 2019)

(%)

100

Source: INTAGE SCI, soy sauce nationwide, April 2010 – March 2020, Size of

market, Amount

100

109

70

80

90

100

110

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

32

2010 sales = 100*1

Notes: *1. Indexed to consolidated net sales in 2010.

*2. Consumption tax was raised from 5% to 8% in April 2014.

*3. Sales declined in 2016 due to a revision of the price system for Hon Tsuyu.

0

*2*3


[3-8] Japan – Changes in Net Sales (Amount) of Kikkoman Soy Sauce

and Soy Sauce Derivative Products (2010 - 2019)

87

100

112

0

20

40

60

80

100

120

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Market Kikkoman

2010 Sales = 100

33

〔3-9〕 Japan – Changes in Tomato Ketchup (Home-Use) Market

and Kikkoman’s Sales (Amount) (2010-2019)

Notes) 1. August 2013: Launched Lycopene-Rich Tomato Ketchup.

2. April 2015: Revised tomato ketchup prices (an increase of about 4 to 10% in suggested retail prices).

3. April 2017: Implemented a price system change for Tomato Ketchup 500 g (decreases in sales prices and sales expenses).

(Source)

Market: INTAGE SCI, Tomato ketchup nationwide, April 2010 – March 2020, Size of market, Amount, Base value

(2010 market total = 100)

Kikkoman: Kikkoman Data

30 35 44 48 55 67 76 90 97 108

121 126145 148 153

165171

182191

205

5760

67 6972

7267

6775

77

18

0

50

100

150

200

250

300

350

400

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Soy milk Processed soy milk Soy milk beverages Others

〔3-10〕 Japan – Changes in Soy Milk Market (Volume)

34

<Classifications of soy milk> Soy milk is defined by the Japanese Agricultural Standards (JAS) and is categorized into three classifications: soy milk, processed soy milk, and soy milk beverages.

Notes) 1. Charts and graphs refer to calendar years.

2. Starting from 2019, soy milk for industrial-use was added in data, and was included in “Others.”

Source: Ministry of Agriculture, Forestry and Fisheries (2010-2014),

Japan Soymilk Association (2015-2019)

Classification Standard Main products of Kikkoman

Soy milk Solid soybean is 8% or more. Oishi Muchosei Tonyu (tasty unprocessed soy milk)

Processed soy milk Solid soybean is 6% or more. Chosei Tonyu (processed soy milk)

Soy milk beverages(A) Fruit juice beverages : Solid soybean is 2% or more.

(B) Other beverages : Solid soybean is 4% or more.

(A) Tonyu Inryo (soy milk beverage) Fruit Mix

(B) Tonyu Inryo (soy milk beverage) Malt Coffee

(1,000KL）

209 220

256 265280

303 314339

363

409

55.8% 52.8%52.6% 51.6% 51.8% 51.7% 51.0% 52.2% 52.9% 51.0%

209 220

256 265 280303 314

339363

409

0

50

100

150

200

250

300

350

400

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Kikkoman Others

35

(1,000KL)

[3-11] Japan – Soy Milk Market and Changes in the Share (Volume) of

Kikkoman Group in Soy Milk Production (2010 - 2019)

Notes: 1. Charts and graphs refer to calendar years.

2. Starting from 2019, soy milk for industrial-use was included in the data.

(Source)

Market: Ministry of Agriculture, Forestry and Fisheries (2010-2014), Japan Soymilk Association (2015-2019)

Kikkoman: Kikkoman Data

37

※For details on the Global Vision 2030, please refer to the following materials.

・ Japanesehttps://www.kikkoman.com/jp/corporate/management/vision2030.html

・English

https://www.kikkoman.com/en/corporate/management/vision2030_en.html

〔4-1〕 Global Vision 2030

Kikkoman Group Long-Term Vision

“Global Vision 2030”～Striving with passion to create new values～

Kikkoman Corporation launched “Global Vision 2030” as our new vision of

the future for the Kikkoman Group in April 2018. This vision states our “goals”

and strategies to achieve these by the year 2030. The Kikkoman Group will

work toward our ambitious goals with our theme “Striving with passion to

create new values” for the year 2030.

38

〔4-2〕 Outline of Global Vision 2030

Challenges toward 2030

Striving with passion to Create New Values

Utilizing management resources

Human resources/information/cash flow

Offering No.1 values

Fermentation and brewing technologies

Global No.1 strategyCreating

new businessesArea No.1 strategy

1 2

1 2 3

Goals

Make Kikkoman

Soy Sauce a truly

global seasoning

Create new delicious

experiences around the

world, and contribute to

richer, healthier lifestyles

1 2 3 Become a company whose

presence in global society is

ever more meaningful,

through activities unique to

Kikkoman

40

Mar. 2004 Capital and business alliance with Kibun Foods Group (※)

Apr. 2006 Transferred shochu business to Sapporo Breweries Ltd.

Jun. 2006 Kibun Food Chemifa Co., Ltd. becomes a consolidated subsidiary of Kikkoman (※)

Jun. 2008 Equity-based business alliances with Riken Vitamin Co., Ltd. (equity method)

Aug. 2008 Kibun Food Chemifa Co., Ltd. becomes a wholly owned subsidiary of

Kikkoman (※)

Mar. 2009 Sold over half of interest in consolidated subsidiary Tone Coca-Cola Bottling Co., Ltd. (Coca-Cola business) to Coca-Cola (Japan) Company, Limited

Apr. 2009 Kibun Food Chemifa Co., Ltd. company name changed to

Foodchemifa Co., Ltd. (※)

Note) An asterisk (※) shows the business restructuring related to the soy milk business.

〔5-1〕 Recent Business Reorganization and

Equity-Based Business Alliances in Japan (2004-2009)

41

Apr. 2010 Kikkoman Beverage Company takes on the beverage sales business of Foodchemifa Co., Ltd.’s Beverage Division through absorption-type company split (※)

Apr. 2011 Integration of the biochemical business, functional material business of the Health Food Sales Department, both in Kikkoman Food Products Company, and the chemicals business of Foodchemifa Co., Ltd.

Apr. 2011 Foodchemifa Co., Ltd. company name changed to Kikkoman Soyfoods Company. (※)

Jun. 2016 Sale of 6,600,000 shares of Riken Vitamin Co., Ltd. (with the ratio of voting

rights held changing from 34.5% to 6.5%)

(The equity-based business alliances continues.)


Equity-Based Business Alliances in Japan (2010-2016)

Note) An asterisk (※) shows the business restructuring related to the soy milk business.

42

Mar. 2005 Established Country Life, LLC through joint venture with local partner

Apr. 2006 Country Life, LLC becomes a wholly owned subsidiary of Kikkoman

Sep. 2008 Allergy Research Group acquired through a TOB, becomes a wholly owned subsidiary of Kikkoman

Dec. 2010 Acquired the shares of Yamakawa Trading Co. (Pte) Ltd. (renamed JFC

(S) Pte. Ltd.) and Yamakawa (H.K.) Limited making them wholly owned

subsidiaries.

Aug. 2012 Naoi Group AS (renamed JFC Norden (Norway) AS) and the wholesale

and retail divisions of Naoi Group AB are spun off (renamed JFC Norden

(Sweden) AB) to make them wholly owned subsidiaries of Kikkoman.


Equity-Based Business Alliances Overseas (2005-2012)

43

＜Business Overview of Country Life, LLC＞

＜Business Overview of Allergy Research Group LLC＞

〔5-4〕 Business Overview of Other Food Businesses in North America

- A long-established company in the health food industry, it has operated for

more than 40 years manufacturing and selling health foods, etc. in the United

States. With sales networks across the United States, it is one of the top brands,

particularly for its channel of distributors

dealing with natural foods.

- The company is a nutritional supplement manufacturer based in Salt Lake City,

Utah, the United States. It formulates and markets nutritional supplement

products featuring vitamins, minerals, and other nutrients, enjoying strong

sales through established direct sales to medical doctors.

- We will enhance the production capacity utilization rate by ensuring that

Allergy Research Group LLC entrusts the production of its products to

Country Life, LLC.

- We will expand the marketing area by ensuring that

Allergy Research Group LLC and Country Life, LLC,

a company based in New York, the United States,

use their respective facilities.

Time Initiative Purpose

March 2001 Introduced corporate officer system Clarified management responsibilities and accelerated decision-making and business execution

June 2002

Appointed outside directors

Increased management transparency and strengthened management oversight Established Nominating Committee and

Remuneration Committee

October 2009 Adopted holding company structureClarified roles and responsibilities of holding company and operating companies and created a

structure to maximize Group synergies

Key steps taken to reinforce corporate governance

45

〔6-1〕 Overview of Corporate Governance (As of June 23, 2020)

StructureCompany with Audit &

Supervisory Board

Corporate officer system Yes

Organization

Basic Approach

DirectorsAudit & Supervisory

Board Members

Number

(including the number of outside appointments)11 (4) 4 (2)

Term of office 1 year 4 years

Executives

Composition Role

Nominating

Committee

6 members (4 outside directors, 2 directors)

Committee chaired by an outside director

Proposes to the Board of Directors the selection and dismissal of directors and corporate

officers as well as the entrustment and removal of managerial positions in addition to the

appointment of audit & supervisory board members. (The Audit & Supervisory Board

provides its consent for audit & supervisory board member candidates)

Remuneration

Committee

6 members (4 outside directors, 2 directors)

Committee chaired by an outside directorDecides on remuneration for directors and corporate officers.

Nominating Committee and Remuneration Committee

The Company regards the enhancement of corporate value through the practice of the Group management philosophy as the basis of

business management. To realize this, the improvement and strengthening of the corporate governance system is the most important

management issue.

46

〔6-2〕Corporate Governance System (As of June 23, 2020)

General Meeting of Shareholders

The Audit & Supervisory Board

4 board members

(including 2 outside

board members)

The Board of Directors11 directors

(including 4 outside directors)

Nominating Committee

Remuneration Committee

Hold

ing C

om

pan

y

Operational

companies

Audit

Appoint / Dismiss Appoint / Dismiss

Kikkoman Group companies

Acco

untin

g A

udito

r

Appoint / Dismiss

Report

Report

CEOGroup Management Committee

Discussion of important issues and reportSelect/Appoint, Supervise

Intern

al Co

ntro

l Com

mittee

Corp

orate E

thics C

om

mittee

Risk

Man

agem

ent C

om

mittee

Quality

Assu

rance C

om

mittee

Gen

eral Enviro

nm

ent

Preserv

ation C

om

mittee

Corp

orate S

ocial R

esponsib

ility

Com

mittee

Holding company

departments

Internal Auditing

Department

Internal Control

Department

Acco

untin

g A

udit Report

ReportAudit Evaluate

Evaluate

Audit

Audit

Acco

untin

g A

udit

kikkoman corporation fact book business information fiscal

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