DyDo Group Holdings

DyDo Group MaterialityMateriality (Material Issues)

Since our founding, we have developed business activities in partnership with our stakeholders. We believe our steady growth since our establishment is attributed to the fact that, under the spirit of “Striving to achieve happiness and prosperity together,” we deliver value for customers, providing them what they need in an affordable manner.

Systematic Image of Materiality
(Value creation model)

DyDo Group Philosophy
Creating happiness and prosperity, together with people and with society. To achieve this goal, the DyDo Group will continue to embrace new challenges in a dynamic way.
Strengths and values we have held since our founding
  • Closeness to customers and considering their perspectives
  • Delivering products customers want in the closest and most convenient locations
  • Business growth through partnerships
Eight material issues aimed at sustainable growth
  • Growth Strategies
  • Organizational Foundation
  • Create societal value through the vending machine business

  • Deliver products that are delicious for mind and body

  • Deliver new drugs of great significance to society

  • Promote DX and form a Solid IT Foundation

  • Contribute to a decarbonized, recycling-oriented society

  • Pursue quality for products that offer safety and peace of mind

  • Strengthen corporate governance

  • Achieve work-life synergy for employees and promote diversity

Where, and what, we want to be in 2030
For DyDo Group to create enjoyable, healthy lifestyles
for people around the world
Together with our customers.
Nurturing our customers’ health
We will deliver products and services that help improve health and quality of life for our customers around the world, in a tireless quest for delicious taste.
Together with the next generation.
Creating new value for future generations
We will take advantage of innovative technologies, bringing surprise and delight to all of our stakeholders.
Together with society.
Taking the lead in social reform
We will take the lead in social reform, going beyond conventional wisdoms to adopt new perspectives for achieving a sustainable society.
Together with the next generation.
Creating new value for future generations
We will take advantage of innovative technologies, bringing surprise and delight to all of our stakeholders.
Together with our people.
Connecting people to people
We will seek out new ways to form mutually beneficial relationships with stakeholders, both old and new, within and outside the company, working flexibly with them and respecting the diversity of their values and abilities.
The spirit of “Striving to achieve happiness and prosperity together” is leading to the SDGs principle of “leaving no one behind.”
Sustainable Development Goals

Process of Identifying Materiality

To identify material issues, we started off with questionnaire surveys of our employees and then interviews with our business stakeholders. Based on their feedback, we conducted questionnaire surveys of the management teams and held discussions with them to narrow down material issues for each segment. Eventually, these issues were integrated to formulate Group Materiality.

  • Employee survey
    Conducted a questionnaire of all employees regarding SDGs targets to which we should contribute as DyDo Group-wide initiatives, and themes to work with
  • Interviews of external stakeholders
    Conducted individual interviews of business partners and experts regarding SDGs targets to which they want us to contribute as DyDo Group-wide initiatives, and themes to work with
  • Survey of the management of each segment
    Based on the survey of group company executives, we extracted an ideal picture of each segment for 2030 and business challenges in achieving the vision.
  • Interview with the top management of each segment/ Identifying Segment Materiality
    Based on a draft plan in which the findings of surveys and interviews conducted with the employees, stakeholders and management teams were compiled, we had discussions with the president of each company in order to identify Segment Materiality.
  • Identifying Group Materiality
    Prioritized material issues for each segment based on the 2030 business portfolio and investment strategies
  • Stakeholder Dialogue
    Reviewing the validity of Materiality identifying process and the themes of Materiality with stakeholders
  • Integrating into the Mid term Business Plan and Confirming Materiality
    Finalize materiality and set priority targets and activities in conjunction with the formulation of the Mid term Business Plan 2026.

Eight Issues of Materiality and Group Mission 2030

  • Deliver products that are delicious for mind and body

  • Pursue quality for products that offer safety and peace of mind

  • Deliver new drugs of great significance to society

  • Contribute to a decarbonized, recycling-oriented society

  • Create societal value through the vending machine business

  • Promote DX and form a Solid IT Foundation

  • Strengthen corporate governance

  • Achieve work-life synergy for employees and promote diversity

  • Together with our customers.
    Nurturing our customers’ health
    We will deliver products and services that help improve health and quality of life for our customers around the world, in a tireless quest for delicious taste.
  • Together with
    society.
    Taking the lead in social reform
    We will take the lead in social reform, going beyond conventional wisdom to adopt new perspectives for achieving a sustainable society.
  • Together with the next generation.
    Creating new value for future generations
    We will take advantage of innovative technologies, bringing surprise and delight to all of our stakeholders.
  • Together with our people.
    Connecting people to people
    We will seek out new ways to form mutually beneficial relationships with stakeholders, both old and new, within and outside the company, working flexibly with them and respecting the diversity of their values and abilities.
For DyDo Group to create enjoyable,
healthy lifestyles for people around the world

Growth Strategy Based on Materiality and Enhancement of Organizational Structure

In the growth strategy developed in line with the identified material issues, we will promote the following initiatives to realize corporate sustainability while contributing to society’s sustainability.

Materiality serving growth strategy
Basic policy
Innovation in the Domestic Beverage Business
Expansion of our business overseas
Development of a second major source of revenue in non-drink businesses
Growth stage
(FY2023 to
FY2027)
Initiatives to improve profitability
  • ・Growth of the vending machine channel
  • ・Continuous evolution of smart Operations
  • ・Stable growth of the Turkish business
  • ・Response to dramatic price rises for raw materials and expansion of the export business
  • ・Profitable growth of home shopping sales of supplements
  • ・Improvement in profitability for DAIDO Yakuhin
  • ・Continuous improvements to Tarami’s manufacturing costs
Initiatives to improve asset turnover
  • ・Improvement of per vending machine sales
  • ・Service life extension of vending machines
  • ・Improvements to plant utilization rates
  • ・Continuous growth in home shopping supplements sales
  • ・Improvements to plant utilization rates
Financial KPIs ROIC 13% ROIC 3% ROIC 8%
Achievement stage
(FY2028 to
FY2030)
Initiatives for future achievements
  • ・Ensuring of a competitive advantage in the vending machine market
  • ・Construction of health-related portfolios with consideration of M&As
  • ・Business development of DyDo Pharma into steady profitability
Financial KPIs ROIC 17% ROIC 5% ROIC 17%
Materiality serving growth strategy
  • Create societal value through the vending machine business
  • Deliver products that are delicious for mind and body
  • Deliver new drugs of great significance to society
  • Promote DX and form a Solid IT Foundation
  • Contribute to a decarbonized, recycling-oriented society
  • Pursue quality for products that offer safety and peace of mind

In addition, in order to strengthen the organizational foundation that supports the growth strategy, we will set themes for each material issue and promote Group-wide efforts from a long-term perspective.

Strengthen
corporate
governance
In order to achieve sustainable growth, we educate employees about our philosophy, vision and sustainable management. To the same end, we strengthen our management with a focus on capital efficiency and enhance our group governance framework
Spreading our philosophy and vision
  • • We spread the DyDo Group's unchanging values represented by our philosophy, etc.
  • • We have newly determined where, and what, we want each of our business segments to be and to get us there we will promote understanding of, and efforts toward, certain material issues among our employees
  • • Under the auspices of the Group Sustainability Committee, we will promote sustainable management
Ensuring capital-efficiency-focused management
  • • We have set KPIs related to capital productivity (ROIC, etc.) at our major subsidiaries and will manage their progress
  • • We will raise awareness at our major subsidiaries toward capital-efficiency-focused management and set KPls aimed at encouraging improvements based on each business' characteristics
Enhancing our group governance structure
  • • We will investigate the construction of a Group-wide governance structure
  • • We are making representatives of our major Japanese subsidiaries corporate officers in the holding company, and enhancing cooperation between group companies
Achieve
work-life synergy
for employees and
promote
diversity
Our aim is to both train future managers from inside and outside the Group, promote diversity among personnel, and improve employee engagement within the Group
Hiring and training future managers
  • • We train the next generation of executives and professional personnel from inside and outside the Group
  • • We will train personnel and encourage them to interact on a Group-wide basis
Promoting diversity among personnel
  • • We establish environments where diverse people want to work, regardless of their nationality, age, gender, or career experience
  • • We provide employees with flexible ways of working, such as through flextime, remote working, or a second job system
  • • We strengthen the working environment so as to support employee health as per the DyDo Group Health Declaration
Improving employee engagement
  • • We conduct engagement surveys at all Japanese subsidiaries
  • • We foster a culture that further promotes taking on challenges
Promote DX
and form a Solid IT Foundation
We are aware of the urgency of responding to society's digital transformation (DX) and so we will make full use of all sorts of digital technologies and develop an IT strategy to help our Group evolve
DX promotion to create new value
  • • We will develop future core systems modeled on responses to new businesses and tasks
  • • We will develop a system aimed at implementing workstyles that utilize data-based decision-making
  • • We will set up a business innovation group to promote DX
  • • We will strengthen our IT organization and train IT personnel
Increased job productivity
  • • We will methodically move from disparate IT foundations optimized to each group company to one optimized to the entire group
  • • We will invigorate communication across the entire organization via technology
  • • To minimize the risk of business disruption from cyber-attacks, we will create a zero-trust security environment
Contribute to
a decarbonized, recycling-oriented society
We have set targets, particularly for our core vending machine business, and will work to bring about a decarbonized, recycling-oriented society and fulfill our duty as a corporate group
CO2 emission reduction targets to enable us to help achieve a decarbonized society
  • CO2 emission reduction target
    By 2030 Achieve carbon nutrality in our own domestic beverage business emissions (Scopes 1 and 2) *
    • * Total CO2 emissions from DyDo DRINCO, DyDo Beverage Service, and DyDo Business Service
  • CO2 emission reduction target
    By 2050 We will aim to make our vending machine business carbon neutral (for both direct emissions and emissions from generating the electricity the machines use*).
    • * CO2 emissions produced by vending machines operated by DyDo Beverage Service (Scope 3)
  • CO2 emission reduction target
    By 2030 Cut CO2 emissions (Scope 1 and 2) for major Japanese group subsidiaries*1 by half*2 (compared to 2020)
    • *1: Total CO2 emissions from DyDo DRINCO, DyDo Beverage Service, and DyDo Business Service, DAIDO Yakuhin (Pharmaceutical-related Business), TARAMI Corporation
    • *2: Calculated based on the sales intensity(Target group companies’ total CO2 emissions divided by total sales)
Image of CO2 emission reduction at DyDo DRINCO

The DyDo Group endorses the recommendations of the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD).
Climate-related information based on the TCFD framework is disclosed.

Disclosure based on the TCFD recommendations
Priority goals to help achieve a recycling-oriented society
  • Priority goal
    Empty-container collection rate To achieve 100% by 2030
  • Priority goal
    Our plastic containers sustainable* We will make more than 60% by 2030
    • * plant-based or recycling based materials
  • Priority goal
    Service life extension of vending machines To achieve an average service life of 15 years by 2030
SDGs 12
The SDG targets corresponding to these initiatives:
12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.
SDGs 13
13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. 13.2 Integrate climate change measures into national policies, strategies and planning.
SDGs 14
14.1 By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution.

See below for details on the growth strategies of the “Mid term Business Plan 2026.”

Mid term Business Plan 2026

Data on Materiality, “ESG Data Book”

Refer to the later section, Data on Materiality, where data on environmental, social (human resources) and corporate governance is provided as “ESG Data.”

Data on Materiality(Environment) Data on Materiality(Human resources) Data on Materiality(Governance)