DyDo Group Holdings

Mid term Business Plan 2026

Mid term Business Plan 2026

The DyDo Group has put its “Medium-Term Management Plan 2026,” a five-year plan launched in FY2022, which outlines the Group’s actions during the growth stage, into motion as it works to realize the vision set forth in our Group Mission 2030, “For DyDo Group to create enjoyable, healthy lifestyles for people around the world.” Additionally, in March 2025, three years after the formulation of the Medium-Term Management Plan 2026, we reviewed the plan in light of the current situation. Below is the revised the Medium-Term Management Plan 2026.

Revision of the Medium-Term Management Plan 2026

Over the three years since the formulation of Medium-Term Management Plan 2026, we have significantly changed our internal structure through business alliances and M&A, and the external environment has also changed rapidly, as exemplified by the soaring raw material prices. As a result, the assumptions underlying the plan have changed significantly, and all target values, including financial indicators, have diverged from reality. Therefore, we have revised the Medium-Term Management Plan. While we have changed the target management indicators and detailed strategies for each business, our vision and basic policies remain unchanged.

Significant Changes in Internal Structure
  • ·To establish a firm advantage in the vending machine market, we established Dynamic Vending Network, Inc. in a joint venture with Asahi Soft Drinks Co., Ltd. in FY 2023.
  • ·In FY2024, we acquired the Polish beverage company Wosana S.A.
Rapid Changes in the External Environment
  • ·The increase in various raw material costs, triggered by Russia's invasion of Ukraine in FY2022.
  • ·Addressing raw material costs and other related costs is an urgent issue.
  • ·The occurrence of hyperinflation in Turkey.

Key Performance Indicators

Sales growth rate(CAGR) +9%

Consolidated operating profit ratio 3%

Consolidated ROIC 4%
* Before application of hyperinflation accounting
* Invested capital is the amount put into in the business segments

Basic Policies

ROIC
Renewing Growth in the Domestic Beverage Business 4%
Where, and what, we want to be
In the vending machine market, we will provide new value through constantly
taking on challenges and co-creating and so continue to lead the industry
Strategy

  • Establish a solid advantage in vending machine market

  • Further evolve smart operations

  • Develop and deliver products that are delicious for sound mind and body

  • Implement strategic cost reforms

Reformulating the International Beverage Business Strategies 13%
Where, and what, we want to be
We will create global brands that support the health of people all over the world
Strategy

  • Expand and stabilize the Turkish Beverage Business

  • Expand the Polish Beverage Business through the establishment of new production lines

  • Cultivate healthy global brands in Chinese and Southeast Asian markets

Strengthening and Developing Non-Beverage Segments 0%

Home shopping sales of supplements
(Domestic Beverage Business)

Where, and what, we want to be
We will continue to provide products and services that always exceed expectations as a close partner to health-conscious customer so they can treasure fulfilling lives after retirement
Strategy

  • Establish a foundation for the regrowth of "Locomo Pro"

  • Develop products that give consideration to materials used and overall balance

  • Evolve our fulfillment* capabilities based on our business strategies

*Receiving orders, processing payments, inventory management, logistics, and other processes up to after-sales follow-up. At DyDo DRINCO these are each outsourced

Pharmaceutical-related Business

Where, and what, we want to be
We will be the no. 1 contract manufacturer in the health and beauty field
Strategy

  • Respond to market needs through the reorganization of the production system

  • Restructure revenue structure

Food Business

Where, and what, we want to be
We will utilize our fruits and jellies to pursue great taste and health, to make people happy
Strategy

  • Solidify business foundation through continuous review of production and supply systems

  • Maintain top market share, expand business domains

Orphan Drug Business

Where, and what, we want to be
We will produce medicines for patients suffering from orphan diseases for which there are currently no treatment options
Strategy

  • Provide information on the proper use of "Firdapse® Tablet 10 mg" and ensure quality assurance and stable supply to penetrate the market

  • Promote the clinical development of DYD-701 in Japan and aim to obtain approval of New Drug Application

  • Aim to acquire new drug candidates targeting rare diseases

Financial Discipline and Investment Strategy/Capital Allocation

Continue financial discipline, review investment capital and allocation. Enhance capital productivity and maintain a stable financial foundation

  • Financial discipline
    ROIC > WACC
    Maintain equity ratio of around 50%
    Maintaining Net Cash Positive
  • Investment capital
    Accumulated Operating Cash Flows for the Remaining 2 Years: 26 billion yen or more
    Strategic Investment Within the positive net cash limit
  • Capital allocation
    Focused reinvestment to ensure a competitive advantage in the vending machine business:
    • ·Vending machine-related assets
      Approx. 12 billion yen
    • ·IT/DX promotion
      (updates to security and core systems)
      Approx. 4 billion yen
    • ·Other equipment investment, etc.
      Approx. 7 billion yen
    For shareholders, we aim to maintain stable dividend payouts and as performance improves, become able to raise dividends
    To achieve growth in the Achievement Stage planned for FY 2027 and beyond, we will allocate capital based on appropriate individual investment decisions, regardless of whether it is within existing businesses or new initiatives