For the year ended April 30, 2014

CORPORATE BOOK 2014
For the year ended April 30, 2014
Management Principle
The ITO EN Difference
“Always Putting the Customer First”
Since its establishment in 1966, ITO EN has consistently adhered to the
management principle of “Always Putting the Customer First.”
The foundation of business management at ITO EN is our commitment to place
importance on each and every customer.
Nationwide
Network
201
Domestic Tea Leaf
Purchasing Ratio
sales offices
23.8
%
The foundation of ITO EN’s marketing strategy is the
Route Sales System for directly delivering products to
customers from 201 sales offices nationwide.
For many years, we have cultivated the optimum
raw materials for Oi Ocha in partnership with tea
producers. Domestic tea leaves are the source of the
high quality of our products, and we purchase more
than 20% of tea leaf production in Japan.
Oi Ocha
Green Tea
Beverage
Worldwide Production
and Sales Network
Consumers
Mission Statement
Our mission is to put the customer first,
Local Communities
make integrity our stock in trade,
Shareholders
Definition of
ITO EN Customers
spare no effort,
Financial Institutions
and earn the confidence
Retailers
and trust of society.
Suppliers
ITO EN credo
The ITO EN Way of Business
Natural
Products with
natural ingredients
Delicious
Healthy
Good-tasting products
that bring happiness
Products that bring
goodness and health
to people’s lives
Well-designed
Simply designed
packaging attests to
good taste
Safe
Safe and enjoyable
products
ITO EN provides customers with
beverages with delicious natural flavor,
placing importance on the goodness
of nature. In accordance with the
management principle “Always Putting
the Customer First,” we think of our
customers with single-minded purpose
and bring goodness and health to people’s
lives by adhering to the “Still Now” ethos
of considering what our customers might
like to see improved. We endeavor to
create products based on the five product
development concepts of “natural,”
“healthy,” “safe,” “well-designed,” and
“delicious” and continue to pursue new
possibilities and challenges.
No. 1
brand
ITO EN pioneered the world’s first canned green tea
beverage Kan-iri Sencha (Canned Green Tea) in 1984
and introduced Oi Ocha, our current flagship brand,
in 1989. We pursue taste and quality by using no
flavorant additives and 100% domestic tea leaves.
13
bases
With the aim of becoming a global tea company, we
are establishing the ITO EN brand and opening new
markets for green tea from business bases in New
York, Florida, Hawaii, Australia, China, and Southeast
Asia.
Contents
A Message from the Management
02
Business Overview
06
Non-Consolidated Review of Operations
12
Non-Consolidated Operating Highlights
Consolidated Financial Highlights
13
14
Consolidated Financial Highlights
and Business Results
16
Stock Information
17
Market Data
18
Corporate Data
19
CORPORATE BOOK 2014
01
A Message from the Management
Q: In retrospect, what is your assessment of the fiscal year ended April 2014?
T
he beverage industry in the fiscal year ended April
beverages, the popularity of the Tully’s Coffee series has
30, 2014 saw active introduction of new product
continued with increased sales volume, contributing to
offerings and continued growth in sales across the
improved business performance. We also actively invested
entire market. At the same time, the business environment
funds in advertising and sales promotion to further reinforce
remains unpredictable, with lingering concerns caused
our brand, while at the same time lowering supply costs
by raw material and fuel cost increases brought on by yen
and reviewing all expenditures in the face of increased
depreciation, reaction to the surge in demand in anticipation
competition.
of the consumption tax increase, cost-conscious consumer
We are also leveraging the effectiveness of synergies
trends, price cutting due to intensified competition, and the
between the Company and the Chichiyasu Company brand,
severe situation resulting from the heavy snows in February.
as the nationwide launch of Nyusankin Soda (Lactic Acid
In light of these circumstances, the Company focused on
Bacterium Soda) demonstrated robust sales, mirroring the
its core message of “delicious tea comes from good farms”
performance of Asa no Yoo. Moreover, NEOS Corporation
for its f lagship products Oi Ocha Ryokucha (Green Tea)
possesses strong sales channels in western Japan, and is
and Oi Ocha Koi Aji (Dark), combining the unique ITO EN
expected to further reinforce vending machine operations of
advantages of “uncompromising quality in plantations, raw
the Group.
Overseas, ITO EN (North America) INC. is enjoying
tea leaves and production methods” in the name of its May
Hachiro Honjo, Chairman
Daisuke Honjo, President
Management Principle
At the core of ITO EN’s management
philosophy is our emphasis on and
commitment to each and every customer.
A
2013 quality assurance renewal, designated “Culmination
steadily increasing sales of its mainstay TEAS’ TEA line,
of Flavor.” Moreover, we renewed our Oi Ocha Zokkon
and sugar-free beverage sales are also performing well.
(Cherished Blend) using 100% top-grade tea, carefully
In addition, our active overseas distribution has ridden
cultivated in our contracted tea plantations, which are part
the current heath-oriented trends to progress toward basic
of our Tea-Producing Region Development Project. We also
establishment of operations in China and Southeast Asia.
strove to revitalize the entire Japanese domestic tea market
As a result, sales in the tea leaves and beverages business
and bring enhanced value and strengthened sales to our Oi
were 409,696 million yen (an increase of 8.0% year on year),
Ocha brand by expanding our simple and easy offerings built
and operating income was 17,935 million yen (a 1.2% increase
around convenient tea bag selections, as well as bolstering
year on year).
our leaf tea Oi Ocha product line. Additionally, we have seen
In the restaurant business, Tully’s Coffee Japan Co., Ltd.
a steady increase in sales for the health beverage Healthy
continued to perform well and further its expansion in the
Rooibos Tea, introduced in June 2013, and the vegetable
number of store locations to 555. Sales were up 12.9% over
beverage Ichinichibun no Yasai (A Day’s Worth of Vegetables),
the previous fiscal year, to 23,180 million yen, and operating
along with the Japanese plum soda using rare sugar, Rare
income increased 18.1%, to 3,178 million yen.
Sugar Soda, launched in March 2014. With respect to coffee
t ITO EN, we consider consumers, shareholders, retailers, suppliers, financial
institutions, and local communities our customers. We have always regarded everyone
involved with ITO EN to be our customer, and we earnestly strive to address our
customers’ needs through the feedback received, and by taking the perspective of our customers as
Net Sales
(Consolidated)
the foundation of our management strategies. We will continue to remain true to our longstanding
principle of “Always Putting the Customer First” and pursue new possibilities and challenges.
(Millions of yen)
Operating Income (Millions of yen)
Operating Income Ratio (%)
437,755 455,500
Based upon our governing principle of “Always Putting the Customer First,” and considered
21,100
in the light of “what our customers might still like to see improved,” we strive to develop products
satisfying our customers and provide customer-oriented service in accordance with our five basic
4.8
development concepts of “natural,” “healthy,” “safe,” “well-designed,” and “delicious.”
10
02
CORPORATE BOOK 2014
11
12
Net Income and ROE
(Consolidated)
Operating Income and
Operating Income Ratio
(Consolidated)
13
14
Apr 30
15
Plan
10
11
12
13
14
Apr 30
Net Income (Millions of yen)
ROE (%)
23,000
12,096 13,100
10.4 10.6
5.0
15
Plan
10
11
12
13
14
Apr 30
15
Plan
CORPORATE BOOK 2014
03
A Message from the Management
Q: Can you provide details of your new medium- and long-term management plans?
Q: What are your thoughts on return to shareholders?
T
I
he Group continues to forge ahead based on our
nurturing of producers, and the active utilization of idle fields
core management principle of “Always Putting the
and orchards. Production volume is increasing each year,
Customer First” and our long-term vision as a “Global
and we are proceeding with the objective of bringing 2,000
Tea Company.” Within this context, we aim to provide, to
hectares of tea plantation area under cultivation.
TO EN considers the continuous return of profits to
distribution. Based on this policy, we increased the final
shareholders one of its most important management
dividend for the year ended April 30, 2014 by one yen per
priorities. We have established stable profit distribution
share, or 20 yen per common stock and 25 yen per preferred
as the basis for our profit distribution policy, and thus provide
stock, and set the annual dividend at 39 yen per common
a continuous stream of dividends.
stock and 49 yen per preferred stock. We utilize internal
customers around the world, quality in lifestyle that represents
Overseas, we are expanding into Singapore, Indonesia,
value, encompassing everything from the Art of Tea tradition
Vietnam, Myanmar, and other markets in active business
To offer our shareholders a new yield commodity, in
reserves for purposes such as investment for corporate value
to the most recent technological advances going forward.
development targeting fast-growing Southeast Asia and
September 2007 we issued preferred stock (Class-A preferred
enhancement, strive to increase corporate value—that is,
To this end, we shall solidify our domestic earnings base
neighboring countries and regions.
stock) with the stipulation that it cannot be converted to
shareholders’ investment value—and intend to actively return
profits to investors through future business development.
centering on our tea leaves and beverage segments, while at
Looking to the future, ITO EN will continue to contribute
common stock, becoming the only listed company issuing
the same time strengthening our brands and creating Group-
to society through a broad range of CSR programs. We will
such shares in Japan. The background for setting a dividend
wide synergies—thereby achieving continued growth.
establish ourselves as a leader in the green tea sector, both
for preferred stock 25% higher than the dividend for common
Moreover, our strategic investments aimed at establishing
in beverages and tea leaves, involved in everything from the
stock is the desire to offer individual investors a familiar yield
overseas business platforms will continue, securing Oi Ocha’s
development of tea-producing regions to the recycling of used
commodity at a time when funds are flowing from savings to
position as a global brand, and with respect to convenience
tea leaves, as well as securing our position as a total beverage
investments. We strive to satisfy expectations for shareholder
products such as tea bags and powdered tea as well, we aim to
manufacturer in Japan. Irrespective of season, individual,
returns as evidenced by our share-buyback program.
achieve further penetration into markets around the world.
location, or time, we aim to maintain ITO EN products as
With regard to the policy of profit distribution, we will
As one aspect of business development, since 2001
a constant companion to our customers, establishing the
conduct, on an ongoing basis, consolidated dividend payout
we have been devoting our efforts to the Tea-Producing
Company as a “Global Tea Company” that offers healthful
ratios of 40%, forming the foundation for stable profit
Region Development
abundance to the customers of the world by continuing to
Project for the stable
develop beverages, tea bags, and instant tea products as global
procurement and more
brands.
eff icient production
Based on these initiatives, we are steadily developing our
of high-quality
position as a globally trusted enterprise as we build toward
domest ic g reen tea
the achievement of our medium- to long-term objective of 500
r aw m a t e r i a l s , t h e
billion yen in sales.
Dividend and Payout Ratio per Share
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continuing to earn the trust and support of our shareholders.
July 25, 2014
Hachiro Honjo, Chairman
Daisuke Honjo, President
Outline of ITO EN Preferred Stock
Note: Class-A preferred stock was listed on the First Section of the Tokyo Stock Exchange
in September 2007.
Common Stock
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In our efforts to achieve these goals, we look forward to
Announcement of medium-term management plan for achieving our long-term vision
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40
Securities Code
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Common Stock Preferred Stock
（2593）
（25935）
Minimum sales growth of 5%
40.7 38.5
Maintain operating profit margin of 5% for domestic beverage business,
and invest surplus earnings in future growth
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Voting rights
Residual assets
Rights to demand distribution
Stock split
46.3 43.9
10
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15
Shareholder gift coupons
Plan
(1) With regard to voting rights, voting rights for preferred stock are activated when
there is no vote to issue preferred dividends for two consecutive years.
Dividend per Share (Yen)
Payout Ratio (%)
(2) Minimum is ¥15. Balance due to pay accumulates when dividend cannot be paid.
CORPORATE BOOK 2014
05
Business Overview
ITO EN’s Route Sales System
Route Sales System Provides
Customer Feedback
General
retailers
● Delivery, displays
● Merchandising, campaign proposals
● Information provision
Expertise in Raw Material Procurement
and Highly Selective Purchasing
R&D
The Central Research Institute conducts basic research into
Our Route Sales System supplies products directly to
We have vigorously pursued using 100% domestically grown
the flavors, stability, and health benefits of ITO EN’s products.
customers via a nationwide sales network comprising
tea leaves in making Oi Ocha since its introduction. Although
Ordinary product development activities involve research
the quality of tea leaves vary slightly according to annual
into processing methods for raw materials and manufacturing
climate conditions, region of production, and cultivation
tech nologies based on product concepts. We conduct
method, our employees pride themselves on conscientiously
agricultural technology research on green tea cultivation and
Route Salesperson
201 sales offices.
Our sales force is able to develop robust lines
of communication by directly visiting customers in
● Replenishment
● Maintenance
Vending
machines
layout
● Sales, inventory control
● Product
●
● Information-gathering
New
● Business negotiations
customers ●
evaluating quality at the point of production, and obtaining
manufacturing processes with the aim of ensuring stable
providing added value. Conversely, salespeople also
raw tea directly from tea markets and tea growers. In
supplies of premium-quality tea leaves optimized for use as
receive the latest feedback and information from
addition, the Tea-Producing Region Development Project,
beverage ingredients and research aimed at developing and
customers, another aspect of the Route Sales System
which was established to grow tea fields for the optimum raw
nurturing tea and vegetable plantations in Japan and overseas.
which further strengthens our bond with customers.
materials for our Oi Ocha brand by working together with tea
This research is producing valuable results.
the field, explaining new product offerings while
Hokkaido/Tohoku
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producers, has been increasing its output each year.
Chubu
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Food Safety and Security Approach
Radioactive substance inspection system
Producer
Outsourcing Partner
ITO EN
Inspection
Inspection
Customer
Respective company
warehousing
Inspection
Tea leaf
product
Raw material
Beverage
product
ITO EN packaging
Inspection
Finished tea
processing procedure
06
Tea
grower
Crude tea processing factory
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Five Block Production System
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(As of May 2014)
ITO EN
Shop
Product
Marketing Strategy
Production System
The foundation of our marketing strategy—
“Giving shape to the customer’s feedback”
Our responsibility for the safe and stable procurement of raw materials,
the supply of products, and research in the health benefits of tea
CORPORATE BOOK 2014
Quality Control “QR Code” Mark
Please access
the following link
for more on
quality control
(Japanese only):
itoen-hinkan.jp
Scan with a mobile phone
The QR code is indicated on
the packaging of core
products, including Oi Ocha.
CORPORATE BOOK 2014
07
Business Overview
China and Southeast Asia
North America
In China, activities such as tea plantation management
ITO EN (North America) INC. was established in New York
and tea leaf processing, as well as the manufacturing and
in 2001. Developing business operations focusing on the mass
sales of beverages mainly for the domestic market, are
market and natural food markets across the United States,
conducted by two joint venture firms. In Southeast Asia, we
the company aims to introduce authentic green tea and to
have established business bases in Singapore, Indonesia,
establish the ITO EN brand. The United States continues to
Thailand, Vietnam, and Myanmar.
see an increasing consumer awareness with respect to green
tea, and demand is on the rise in regions across that market.
Ningbo Shunyi Tea
Products Co., Ltd.
ITO EN Beverage (Shanghai), Ltd.
In 1984, ITO EN pioneered the world’s first canned green tea beverage Kan-iri Sencha. Five years later, in 1989, we introduced
Oi Ocha, which is currently our flagship brand. Over the years since its launch, Oi Ocha has developed into a brand loved by
ITO EN (North America) INC.
Head Office
Fujian New Oolong
Drink Co., Ltd.
ITO EN Asia Pacific
Holdings Pte. Ltd.
Mason Distributors, Inc.
ITO EN (USA) INC.
Hawaii
In 1987, ITO EN (USA) INC. was established in
consumers across Japan thanks to our rigorous pursuit of taste and quality based on the use of no flavorant additives and 100%
Hawaii, where it commenced the manufacture
domestic tea leaves. Through our efforts, we will ensure that Oi Ocha continues to be a customer favorite for years to come.
and sales of canned beverages such as tropical
juices, sugar-free teas, and coffee.
Moreover, ITO EN will continue to create brands loved by consumers across Japan, including vegetable drinks such as Jujitsu
Yasai (Vegetables Galore) and Ichinichibun no Yasai (A Day’s Worth of Vegetables), coffee beverages such as Tully’s Coffee, and
tea drinks under the TEA’S TEA brand.
ITO EN AUSTRALIA PTY. LIMITED
Australia
In anticipation of increased future demand
for green tea raw materials and to secure a
stable supply, ITO EN AUSTRALIA PTY.
LIMITED was established in 1994 in Victoria,
Australia, where the climate resembles that of
Japan, and engages in the production and sales
of tea leaves, as well as sales of beverages.
08
Brand Development
Overseas Business
ITO EN is dedicated to product research and development based on its five product
development concepts: “natural,” “healthy,” “safe,” “well-designed,” and “delicious”
Expanding the “ITO EN” brand overseas
CORPORATE BOOK 2014
CORPORATE BOOK 2014
09
Business Overview
Based on our governing principle of “Always Putting the Customer First,” the ITO EN Group aims to enhance corporate value as we continue to grow and develop as a socially
Governance System
Compliance Committee, which was established as an advisory organ to the Board of
This ensures rigorous legal and regulatory compliance to respond ever better to the expectations of our stakeholders, including consumers, shareholders, customers, suppliers,
In the ITO EN Founding Charter, the ITO EN Group has formulated the basics for
complies with the applicable laws and regulations.
financial institutions, regional communities, governments, municipalities, non-profit and non-governmental organizations, and our employees. Among these, “the environment,”
management to continually grow and develop as an enterprise and enhance corporate
The Executive Board meeting is held monthly to assist the Board of Directors
“consumer issues,” and “community involvement and development” have been singled out for priority CSR areas to enable the Company to capitalize on core business attributes
value: cooperate with its stakeholders, including the government, local communities,
and the President. Its business execution includes establishing overall execution
of the ITO EN Group in contributing to society through the creation of a new gastronomic culture and lifestyle proposals, thereby promoting the creation of shared value (CSV)
consumers, shareholders, retailers, suppliers, and financial institutions, and fulfill its
policies in accordance with the basic management policy, which has been resolved by
to tackle social issues while furthering the growth of the Group. At the same time, we have implemented the concept of education for sustainable development (ESD) and aim to
corporate social responsibility (CSR).
the Board of Directors, and determining important business items via consultations.
responsible enterprise. For this purpose, we established “Basic CSR,” in accordance with the seven core subjects of the international ISO 26000 and domestic JIS Z 26000 standards.
deepen our commitment to CSR/CSV.
Directors, deliberates whether the daily business execution of the Board of Directors
The management principle above is the basic concept of our corporate ethics and
an everlasting truth that supports our corporate governance. Based on this principle,
every officer and employee of the Company is active in promoting concerted efforts
Fundamental Concepts for Each Core Subject of CSR
to realize a sustainable society in line with the interests of all stakeholders and strives
Human Rights
Consumer Issues
The ITO EN Group does not discriminate based on gender, age, ethnicity, race,
religion, or creed, and we engage in business activities that reflect respect for
fundamental human rights.
The ITO EN Group creates products and provides services in accordance with the
development concepts “natural,” “healthy,” “safe,” “well-designed,” and “delicious”
under a strict quality control system implemented at every production stage from raw
materials to finished product.
We intend to further reinforce our quality control system and proactively disclose
information on matters including quality control and raw ingredients. In addition, we
aim to further enhance customer satisfaction through the development of universal
design products and the promotion and handing down to future generations of tea
culture through utilization of the tea taster system, our internal certification system.
Labor Practices
Since its founding, the ITO EN Group has operated
under the merit system. We will continue to create
workplaces that promote the honing of individual
skills and abilities through friendly competition based
on a spirit of true harmony and increase the work
motivation of each and every employee.
The “Kurumin” certification mark
for companies that support the
development of the next generation
Fair Operating Practices
Every officer and employee of the ITO EN Group will take seriously the expectations
and wishes of stakeholders, including consumers, investors, business partners,
and local communities, and conscientiously respond by ensuring the legality
and appropriateness of management and the conduct of business on the basis of
compliance with the laws of Japan and other countries, internal regulations, and
ethical standards.
The Environment
To conduct appropriate corporate governance, as a company with a Corporate
The ITO EN Group has established its internal control system to achieve the
decision-making process, and other matters regarding the respective representative
following objectives through enhanced transparency in the business operation of
directors, the directors in charge, and the employees of ITO EN Group companies. As
the Group in accordance with the basic policy for internal control systems, which
of July 25, 2014, three of the four corporate auditors were outside corporate auditors,
was resolved at the Board of Directors’ meeting in May 2006: 1) to improve the
and the improvement of management transparency is addressed by reflecting the
effectiveness and efficiency of business operations; 2) to ensure the reliability of
opinions of such outside experts on management. Internal and outside corporate
financial reporting; 3) to comply with the applicable laws and regulations relevant to
auditors attend every meeting of the Board of Directors, offering fair and impartial
business activities; and 4) to safeguard corporate assets.
and audit opinions on overall corporate affairs and each item of business, and audit
Community Involvement and Development
business execution by directors in accordance with the audit policy set forth by the
The ITO EN Group participates in community activities and contributes to
community development.
We engage in the Tea-Producing Region Development Project to procure a
portion of the high-quality domestic green tea raw materials used to make Oi Ocha,
utilizing idle land in six districts of four prefectures in Kyushu: Miyazaki, Oita,
Kagoshima, and Nagasaki. Through our core business we are able to assist in finding
solutions to regional social issues.
We also assist communities in addressing issues related to the environment, diet,
and culture through our main business.
In addition, since the Great East Japan Earthquake we have provided
ongoing reconstruction support under the concept “building ties through tea.”
We continuously hold “Tea Lover Gatherings” to help residents of stricken areas
maintain ties and connections.
Risk Management System
Board of Corporate Auditors.
Recognizing a myriad of risks associated with compliance, information security,
Our ESD Promotion Concept
quality, the environment, the conservation of corporate assets, and disasters and
At the monthly meeting of the Board of Directors, all of the important items on the
accidents with regard to the business execution of the Company, the Company has
agenda are determined with regard to 1) management principles to “raise shareholder
designated a Risk Department; drawn up internal rules, regulations, and guidelines;
value”; 2) business plans; and 3) the decision making and progress of organizational
and established a cross-sectional risk management system.
and financial policies. These Board meetings also monitor the status of operations and
supervise the business execution of the Company and its subsidiaries. In addition, the
standing corporate auditor and three part-time corporate auditors. The three part-time
Election, dismissal
Election, dismissal
Audit
Board of Directors
[Management, supervision]
Election, supervision
in legal, financial accounting, and taxation affairs. For the purpose of auditing the
Election, dismissal
Compliance Committee
Audit
Representative Director
[Business execution]
[Internal control]
Executive Board
Internal Auditing Department
・Internal Control Promotion
Committee
・Environment Committee
・Others
Advice, guidance
・Budget Committee
・Long-Term Management
Planning Committee
・Personnel System Improvement
Committee
legality, etc., of directors’ business execution under the audit plan, the corporate
auditors attend important meetings such as those of the Board of Directors to verify
Board of Corporate Auditors
[Management monitoring]
Outside legal counsel, etc.
10
For more details, please visit:
http://www.itoen.co.jp/eng/csr/index.html
corporate auditors are outside corporate auditors who have considerable expertise
General Meeting of Shareholders
Dedicated committees
(1) CSV: Creation of shared value
(2) ESD: Education for sustainable development
Corporate Auditors
As of July 25, 2014, the Company had four corporate auditors consisting of one
System of Corporate Governance
the legality and appropriateness of the process and the results of managerial decision
Independent Auditor [Management monitoring]
The ITO EN Group aims for “professional development for implementation of CSR/
CSV toward social, environmental and regional sustainability. Each employee makes
this a reality in partnership with their many contacts, both within and beyond the
confines of the Company. In this way, we shall continue to deepen and promote our
CSR/CSV efforts.
The Company’s Board of Directors consisted of 17 directors as of July 25, 2014.
Legal Department
Compliance Department
Recycled products made from used tea leaves for the effective use of used tea leaves
(Received Minister of the Environment Prize at the 20th Grand Prize for the Global Environment Award)
Internal Control System
Auditors system, our corporate auditors check and audit business conditions, the
Audit
The ITO EN Group fully recognizes that protecting the global environment and
ensuring sustainability for the next generation is an important responsibility. For this
reason, for the fiscal year ending April 30, 2015 we have revised the ITO EN Group
“Environmental Policy” and are working to conserve water resources and protect
biodiversity. We have set environmental targets based on this policy and, taking into
consideration the entire value chain, recognize and work to minimize the impact that
the Group’s business activities have on the global environment.
As part of our efforts that extend across the entire value chain from plantation
to used tea leaves, to ensure that concern for the environment is reflected in used tea
processing and products, we have realized value enhancement by developing the ITO
EN proprietary Used Tea Leaves Recycling System, which takes advantage of the
useful ingredients that remain in used tea leaves and transforms them into familiar
everyday products.
Internal Control Initiatives
to repay their trust.
making. The corporate auditors also peruse important documents and physically
investigate the status of the business execution of the administration, sales, and
production departments. Audit results summarized by each auditor are reported at the
monthly Board of Corporate Auditors’ meeting to encourage information sharing and
exchanges of opinion among the corporate auditors. Furthermore, the Independent
Auditor and the Internal Auditing Department periodically meet to make efforts to
improve the effectiveness of audits through collaboration via consultations on the
audit status.
Outside Directors and Outside Corporate Auditors
From the viewpoint of protecting ordinary shareholders, the Company has designated
two outside directors (Hirokazu Uchiki and Morikazu Taguchi) and three outside
corporate auditors (Yoshiaki Takasawa, Yutaka Tanaka, and Masahiro Nagasawa) as
independent officers who have no conflicts of interest with ordinary shareholders.
CSR
Corporate Governance
ITO EN Group CSR/CSV and ESD —
Aiming for sustained growth and development together with our stakeholders
The ITO EN Group has established a sound management system based on the management
principle of “Always Putting the Customer First,” which ensures the transparency, soundness,
and legality of management, and swiftly discloses appropriate information
CORPORATE BOOK 2014
CORPORATE BOOK 2014
11
Non-Consolidated Review of
Operations
Non-Consolidated Operating
Highlights
Others
Other Beverages
Mineral Water
Functional Beverages
Tea Leaves
Tea Leaves
Sales by Container (Volume Basis)
(Year ended April 30, 2014)
Sales by Business Category
(Year ended April 30, 2014)
Sales by Region
(Year ended April 30, 2014)
Black Tea Beverages
Sales
¥30,624
Up
Coffee Beverages
Fruit Beverages
million
6.4% year on year
8.5%
Net sales share
Vegetable Beverages
¥173,310
Up
Net sales share
Chinese Tea Beverages
Oi Ocha Zokkon
Premium Tea Bags
Sara Sara Mugicha
(A Tea Master’s Cherished Blend) Fukamushi-cha (Powdered Barley Tea)
(Deep-steamed Green Tea)
Black Tea Beverages
Japanese Tea Beverages
Sales
Sales
million
6.3% year on year
47.7%
Japanese Tea Beverages
Net sales share
¥12,758
Down
Oi Ocha Green Tea Kenkou Mineral Mugicha Healthy Rooibos Tea
(Healthy Mineral Barley Tea)
Chinese Tea Beverages
3.5%
12.1%
Supermarkets
38.5%
Hokkaido
PET bottles (2L)
25.7%
Convenience stores
25.9%
Tohoku
PET bottles (500ml)
29.6%
Vending machines
16.7%
Kanto
Others
18.9%
Chubu
10.4%
Kansai
13.5%
PET bottles (350ml and smaller) 13.2%
million
PET bottles (others)
20.5% year on year
Net sales share
Cans
TEAS’ TEA
TEAS’ TEA
Bergamot & Orange Tea Berry Berry Tea
6.9%
Cartons
11.7%
Others
0.8%
3.7%
7.1%
50.9%
Chugoku/Shikoku
6.3%
Kyushu
8.1%
TEAS’ TEA
Earl Grey Sparkling
Functional Beverages
Overview of Principal Consolidated Subsidiaries
Sales
¥16,552
Down
Sales
million
3.5% year on year
Up
4.6%
Net sales share
¥6,303
Net sales share
Oolong Tea
Relax Jasmine Tea
Catechin Jasmine Tea
Vegetable Beverages
million
3.3% year on year
1.7%
Kurozu de Kassei
(Revitalization Through
Black Vinegar)
Kurozu to Calcium
(Black Vinegar and
Calcium)
Yogurt–Flavored
Nata de Coco
Tully’s Coffee Japan
Sales
Mineral Water
¥23,865 million
Up
Sales
¥49,830
Down
Net sales share
Sales
million
1.6% year on year
13.7%
Down
Jujitsu Yasai
(Vegetables Galore)
Ichinichibun no Yasai Mainichi Ippai no Aojiru
(A Day’s Worth of Vegetables) (Daily Cup of Green Juice)
Fruit Beverages
Sales
¥13,510
Up
Net sales share
Sales
million
¥31,090
Up
Net sales share
Karada Kagayaki Kajitsu
(Fruit for a Radiant Body)
Blueberry & Asai Mix
Hiyashiume
(Japanese Apricot)
12
CORPORATE BOOK 2014
Net sales share
Sales
million
evian
Designer’s Bottle
Migakarete Sumikitta
Nihon no Mizu
(Japan’s Clear Water)
Stylee Sparkling Lemon
Rare Sugar Soda
Asa no Yoo
(Yogurt Drink)
Up
2.8% year on year
ITO EN (North America) INC., established in New York in 2001,
is creating and developing a green tea market in the United States,
where increasing health consciousness is fueling higher demand for
sugarless tea beverages and green tea bags.
million
2.6% year on year
4.8%
¥2,947
Down
Tully’s Coffee
BARISTA’S BLACK
evian
2.5%
Tully’s Coffee is a chain of specialty coffee shops that originated in
Seattle. Tully’s currently operates more than 555 shops nationwide,
providing high-quality products and service in a relaxing
atmosphere.
$78,829 thousand
Others
11.7% year on year
8.6%
0.2% year on year
¥17,369
Up
Vitamin Fruit
Risou no Ringo
(The Perfect Apple)
million
Sales
Other Beverages
Coffee Beverages
Sales
Net sales share
2.4% year on year
3.7%
¥9,059
13.3% year on year
ITO EN (North America)
Tully’s Coffee
BARISTA’S ICED COFFEE
Tully’s Coffee
BARISTA’S DEMITASSE
Net sales share
million
3.4
% year on year
0.8%
Wakaba no Aojiru
(Green Juice Young Leaf)
VEGESTICK
Asa no Yoo Stick
(Yogurt Stick)
CORPORATE BOOK 2014
13
Consolidated Financial Highlights
Years ended April 30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
263,764
288,077
310,200
328,071
332,847
332,984
351,692
369,284
403,957
437,755
49.4
49.3
48.5
48.9
50.8
50.9
50.6
52.1
52.4
51.6
19,710
21,066
22,796
19,236
10,613
12,453
17,679
18,907
20,250
21,100
Profit and Loss
Net Sales (Millions of yen)
Ratio of Cost of Sales (%)
Operating Income (Millions of yen)
Operating Income Ratio (%)
Net Income (Millions of yen)
7.5
7.3
7.3
5.9
3.2
3.7
5.0
5.1
5.0
4.8
10,451
11,685
12,261
10,096
4,765
5,996
7,675
9,249
11,244
12,096
137,314
154,687
160,803
179,846
192,462
224,843
244,970
258,820
85,936
104,519
99,989
100,455
101,630
106,010
113,942
120,509
Financial Condition
Total Assets (Millions of yen)
109,921
121,284
Total Net Assets (Millions of yen)
69,311
77,419
Total Liabilities (Millions of yen)
(3)
40,609
43,865
51,377
50,168
60,814
79,390
90,831
118,833
131,028
138,310
Current Ratio (%)
199.4
201.0
164.9
187.1
179.7
168.3
164.4
190.1
182.0
173.8
Equity Ratio (%)
63.1
63.8
62.6
67.5
62.1
55.8
52.7
47.1
46.3
46.3
Debt/Equity Ratio (%)
58.6
56.7
59.8
48.0
60.9
79.1
89.5
112.2
115.5
115.5
19,702
Free Cash Flows (Millions of yen)
10,116
8,371
-3,421
-9,221
-1,871
10,621
17,581
13,394
14,769
Capital Expenditures (Millions of yen)
2,773
4,517
4,320
7,085
2,804
1,868
2,100
4,031
6,639
4,888
Depreciation and Amortization (Millions of yen)
1,111
1,232
1,813
2,330
4,287
7,034
9,011
10,892
13,718
15,131
10.4
Financial Indicators
Return on Equity (ROE) (%)
15.9
15.9
15.0
10.6
4.7
6.0
7.6
8.9
10.3
Return on Assets (ROA) (%)
9.9
10.1
9.5
6.9
3.0
3.5
4.1
4.4
4.8
4.8
22.1
32.0
29.1
22.1
33.9
32.1
24.1
20.1
26.5
22.8
−
−
−
12.4
17.8
18.0
15.1
14.2
18.4
16.2
3.3
4.8
4.2
2.2
1.5
1.8
1.7
1.7
2.5
2.2
−
−
−
1.3
1.0
1.2
1.3
1.3
2.0
1.8
(1)
130.91
137.59
81.61
35.47
45.44
59.31
72.18
88.64
95.77
(1)
869.21
Price Earnings Ratio (Times) (Common Stock)
Price Earnings Ratio (Times) (Class-A Preferred Stock)
Price Book Value Ratio (Times) (Common Stock)
Price Book Value Ratio (Times) (Class-A Preferred Stock)
Earnings per Share (Yen) (Common Stock)
233.15
Earnings per Share (Yen) (Class-A Preferred Stock)
−
Book Value per Share (Yen) (Common Stock)
−
1,550.52
Book Value per Share (Yen) (Class-A Preferred Stock)
−
Cash Dividends per Share (Yen) (Common Stock)
57
47
Cash Dividends per Share (Yen) (Class-A Preferred Stock)
−
−
−
Payout Ratio (%) (Common Stock)
91.69
45.47
55.41
69.28
82.18
98.64
105.77
836.81
800.94
808.37
821.36
856.76
923.24
974.36
845.61
805.94
813.37
826.36
861.76
928.24
979.36
38
38
38
38
38
38
39
48
48
48
48
48
48
49
40.7
(2)
963.71
−
70
(2)
−
(3)
−
(1) (3)
(2)
(2)
(2)
30.0
30.2
34.2
46.6
107.1
83.6
64.1
52.6
42.9
Payout Ratio (%) (Class-A Preferred Stock)
−
−
−
52.3
105.6
86.6
69.3
58.4
48.7
46.3
Payout Ratio (%) (Common Stock and Class-A Preferred Stock)
−
−
−
48.3
106.6
81.4
65.6
54.4
44.5
42.4
111,516
117,124
119,820
123,692
133,624
141,423
149,879
148,093
155,065
161,432
4,559
4,817
5,010
5,223
5,346
5,237
5,278
5,285
5,307
5,339
Vending machine installation (Units)
Number of employees (Non-consolidated)
(1) The Company implemented a two-for-one stock split on March 1, 2006.
(2) On September 3, 2007, ITO EN allocated free of charge Class-A Preferred Stock at a ratio of 0.3 shares to one share of common stock.
(3) Effective from the fiscal year ended April 30, 2007, the Company and its domestic consolidated subsidiaries adopted the new accounting standard, “Accounting Standard for Presentation of Net Assets in the Balance Sheet”
(Statement No. 5 issued by the Accounting Standards Board of Japan on December 9, 2005), and “Implementation Guidance for the Accounting Standard for Presentation of Net Assets in the Balance Sheet” (Guidance No. 8
issued by the Accounting Standards Board of Japan on December 9, 2005) (collectively, the “New Accounting Standards”), and “Accounting Standard for Treasury Shares and Appropriation of Legal Reserve” (Accounting
Standards Board of Japan, August 11, 2006 final revised, Statement No. 1) and “Implementation Guidance on Accounting Standard for Treasury Shares and Appropriation of Legal Reserve” (Accounting Standards Board of
Japan, August 11, 2006 final revised, Guidance No. 2).
Net Sales and Operating Income Ratio
Total Assets and ROA
Net Sales
（％）
Operating Income Ratio
(Millions of yen)
480,000
437,755
360,000
240,000
4.8
120,000
0
14
05
06
07
08
CORPORATE BOOK 2014
09
10
11
12
13
14
Apr 30
Free Cash Flows and Capital Expenditures
Total Assets
ROA
(Millions of yen)
12
280,000
9
210,000
6
140,000
3
70,000
0
0
（％）
258,820 12
9
4.8
05
06
07
Cash Dividends per Share (Common Stock),
Cash Dividends per Share (Class-A Preferred Stock),
and Payout Ratio (Common Stock)
08
09
10
11
12
13
14
Apr 30
Free Cash Flows
Capital Expenditures
(Millions of yen)
20,000
10,000
Cash Dividends per Share (Common Stock)
Cash Dividends per Share (Class-A Preferred Stock)
Payout Ratio (Common Stock)
(Yen)
19,702
4,888
80
60
（％）
120
90
49
6
0
40
39
60
3
-10,000
20
40.7
30
0
-20,000
05
06
07
08
09
10
11
12
13
14
Apr 30
0
05
06
07
08
09
10
11
12
13
14
0
Apr 30
CORPORATE BOOK 2014
15
Consolidated Financial Highlights and
Business Results
Stock Information
Net Sales
Operating Income and
Operating Income Ratio
(Millions of yen)
Operating Income Ratio
24,000
437,755
360,000
(As of April 30, 2014)
Stock Breakdown by Holder
Operating Income
(Millions of yen)
480,000
Stock Information
(%)
Total Number of
Authorized Shares
200,000,000 shares
Class-A
Common Stock Preferred Stock
(%)
(%)
8
21,100
18,000
6
Total Number of
Outstanding Shares
Common stock
Class-A preferred stock
Number of Shareholders
Common stock
Class-A preferred stock
89,212,380 shares
34,246,962 shares
4.8
240,000
12,000
120,000
0
4
6,000
10
11
12
13
0
14
Apr 30
2
10
11
12
0
14
13
Net Income
(Millions of yen)
ROE
16,000
12,096
12,000
Total Liabilities
(%)
(Millions of yen)
16
160,000
12
120,000
8
80,000
ROA
(%)
138,310
12
9
46.30
33.97
27.65
Foreign corporations, etc.
13.31
19.60
Financial institutions
18.80
6.12
0.16
0.33
Note: Treasury stock is included in “Private investments and others.”
Common Stock
Class-A
Preferred Stock
Major Shareholders
Preferred Stock
Number of
Shares Held
(Thousands
of shares )
Name
Total Liabilities and ROA
33.76
Other companies
Securities firms
Common Stock
Apr 30
Net Income and ROE
73,954 persons
66,566 persons
Private investments and others
Green Core Ltd.
Honjo International Scholarship Foundation
The Master Trust Bank of Japan Ltd. (Trust account )
Ito En Employees’ Stockholding
Hachiro Honjo
BNYML (Non-Treaty Account)
Toyo Seikan Group Holdings, Ltd.
Resona Bank Ltd.
State Street Bank and Trust Company 505223
Japan Trustee Services Bank, Ltd. (Trust account 9)
17,403
5,200
2,862
2,670
2,445
2,158
1,955
1,933
1,800
1,773
Percentage of
Shareholding
(%)
19.51
5.83
3.21
2.99
2.74
2.42
2.19
2.17
2.02
1.99
Number of
Shares Held
(Thousands
of shares )
Name
Green Core Ltd.
Honjo International Scholarship Foundation
The Bank of New York (JASDEC Non-Treaty Account)
Mellon Bank, N.A. As Agent For Its Client Mellon ABN Omnibus UK Pension
State Street Bank and Trust Company
Hachiro Honjo
National Mutual Insurance Federation of Agricultural Cooperatives
State Street Bank and Trust Company 505025
Credit Suisse Securities (USA) LLC Spcl. For EXCL. BEN
Ito En Employees’ Stockholding
5,895
1,560
1,473
1,175
1,171
882
762
525
403
322
Percentage of
Shareholding
(%)
17.21
4.56
4.30
3.43
3.42
2.58
2.23
1.53
1.18
0.94
10.4
8,000
4.8
6
Stock Price
(Yen)
4,000
4
40,000
3
0
0
0
0
10
11
12
13
14
10
11
12
13
14
Apr 30
Apr 30
(Yen)
3,000
3,000
2,000
2,000
1,000
1,000
0
Total Assets and Equity Ratio
Class-A Preferred Stock
Common Stock
2012
2013
2014
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4
0
2012
2013
2014
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4
Note: Class-A preferred stock was listed on the First Section of the Tokyo Stock Exchange in September 2007. ITO EN allocated free of charge Class-A preferred stock at a ratio of 0.3 shares to one share of
common stock.
Consolidated Cash Flows
Cash Flows from Operating Activities
Total Assets
(Millions of yen)
Equity Ratio
280,000
258,820
210,000
140,000
46.3
70,000
0
10
11
12
13
14
Apr 30
16
CORPORATE BOOK 2014
Cash Flows from Investing Activities
(%)
100
Cash Flows from Financing Activities
(Millions of yen)
26,000
75
13,000
50
0
24,300
Cash Dividends per Share and Payout Ratio
Common Stock
Class-A Preferred Stock
38
38
38
-4,598
25
-13,000
0
-26,000
-18,147
10
11
12
13
14
Apr 30
Payout Ratio (%)
Cash Dividends per Share (Yen)
2.6
2.7
2.6
10
11
12
38
39
1.6
1.8
13
14
Apr 30
48
48
4.8
4.6
10
11
48
48
49
4.1
2.6
2.9
12
13
14
Apr 30
Note: Payout ratio = Dividends per share ÷ Year-end share price
CORPORATE BOOK 2014
17
Corporate Data
Market Data
Beverage Market
Corporate Data
Calendar year
2009
Tea
Coffee
Vegetable
Fruit
Carbonated
Mineral water
Others
Total
2010
2011
2012
(As of April 30, 2014)
2013
Billions
of yen
YOY %
change
Billions
of yen
YOY %
change
Billions
of yen
YOY %
change
Billions
of yen
YOY %
change
Billions
of yen
YOY %
change
870.1
966.2
144.4
305.6
603.3
219.2
418.9
3,527.7
-4.4%
-0.3%
-7.6%
-5.7%
1.9%
2.4%
-6.9%
-2.4%
885.0
952.4
146.8
312.2
643.4
210.2
457.8
3,607.8
1.7%
-1.4%
1.7%
2.1%
6.6%
-4.1%
9.3%
2.2%
872.5
948.0
150.1
325.0
642.5
252.7
412.3
3,603.1
-1.4%
-0.5%
2.2%
4.1%
-0.1%
20.2%
-9.9%
-0.1%
871.5
952.0
167.4
325.7
680.0
232.0
408.8
3,637.5
-0.1%
0.4%
11.5%
0.2%
5.8%
-8.2%
-0.8%
1.0%
885.0
938.7
164.4
329.9
698.0
244.0
420.0
3,680.0
1.5%
-1.4%
-1.8%
1.3%
2.6%
5.2%
2.7%
1.2%
Tea Beverage Market
Calendar year
2009
Billions
of yen
Green tea
Barley tea
Blended tea
Chinese tea
Black tea
Total
2010
YOY %
change
382.0
32.0
133.0
128.0
195.1
870.1
Billions
of yen
-5.0%
2.6%
-8.0%
-7.4%
0.3%
-4.4%
2011
YOY %
change
375.0
34.5
126.5
131.0
218.0
885.0
Billions
of yen
-1.8%
7.8%
-4.9%
2.3%
11.7%
1.7%
2012
YOY %
change
375.0
39.5
121.0
119.5
219.0
872.5
Billions
of yen
0.0%
14.5%
-4.3%
-8.8%
0.7%
-1.4%
Billions
of yen
2.1%
15.2%
-3.4%
-1.7%
-4.1%
-0.1%
YOY %
change
405.0
51.0
122.0
115.0
192.0
885.0
5.7%
12.1%
3.4%
0.0%
-8.6%
1.5%
Company Name
Business Lines
Head Office
Established
Capital
Fiscal Year-end
URL
ITO EN, LTD.
Manufacture and sales of tea leaves and beverages
47-10, Honmachi 3-chome, Shibuya-ku,
Tokyo 151-8550, Japan
August 22, 1966
¥19,912 million
April 30
http://www.itoen.co.jp/eng/
(As of August 1, 2014)
Chairman and Representative Director
Hachiro Honjo
President and Representative Director
Daisuke Honjo
Vice-President and Representative Director
Shusuke Honjo
Executive Vice-Chairman
Yoshito Ejima
Executive Vice-Presidents
Shunji Hashimoto
Minoru Watanabe
Executive Managing Directors
Mitsuo Yashiro
Yoshio Kobayashi
Managing Directors
Masami Kanayama
Yoshihisa Nakano
Directors
Yosuke Jay Oceanbright Honjo
Osamu Namioka
Shigeru Kamiya
Fujitsugu Souma
Shuji Nakagomi
Outside Directors
Hirokazu Uchiki
Morikazu Taguchi
Standing Corporate Auditor
Minoru Takahashi
Outside Corporate Auditors
Yoshiaki Takasawa
Yutaka Tanaka
Masahiro Nagasawa
2013
YOY %
change
383.0
45.5
118.0
115.0
210.0
871.5
Board of Directors and Corporate Auditors
Green Tea Leaf Market
Calendar year
2009
2010
YOY %
change
Domestic raw tea leaf production capacity (Tons)
Green tea leaf market (Billions of yen)
Beverage Market
Tea
Coffee
Vegetable
( Billions
of yen )
4,000
86,000
298.0
-9.9%
-6.0%
85,000
284.6
Tea Beverage Market
Fruit
Carbonated
Mineral water
Others
Green tea
Barley tea
Blended tea
( Billions
of yen )
500
Chinese tea
Black tea
400
3,000
2011
YOY %
change
2012
YOY %
change
-1.2%
-4.5%
84,100
278.3
2013
YOY %
change
-1.1%
-2.2%
87,900
262.9
Domestic Raw Tea Leaf
Production Capacity
YOY %
change
4.5%
-5.5%
84,800
261.2
-3.5%
-0.6%
Green Tea Leaf Market
( Tons )
( Billions
of yen )
120,000
400
90,000
300
60,000
200
1966
200
1,000
0
09
10
11
12
0
13
100
30,000
100
09
10
11
12
13
0
09
10
11
12
13
0
09
10
11
12
13
1969
1972
Feb Introduction of high-speed automatic wrapping equipment developed
1974
Other Data (2013)
Sales Volume Contribution
by Container Type
Sales Contribution
by Business Category
Aug The Frontier Tea Corporation, ITO EN’s predecessor, established in Shizuoka
City, Shizuoka Prefecture.
May Company name changed to ITO EN, LTD.
1979
Sales Volume Share by
Beverage Manufacturer
ITO EN SANGYO, LTD.
OKINAWA ITO EN, LTD.
ITO EN KANSAI CHAGYO, LTD.
Tully’s Coffee Japan Co., Ltd.
ITO EN ∙ ITOCHU MINERAL WATERS CO., LTD.
GREEN VALUE CO., LTD.
Chichiyasu Company
NEOS Corporation
1981
1985
by Industrial Gesellschaft of Switzerland. Development of vacuum pack
technology to preserve the freshness of green tea leaves.
May Shizuoka Sagara Plant constructed in Sagara Town (now Makinohara City),
Haibara, Shizuoka Prefecture, and production systems consolidated there.
Aug Signed a contract with the China National Native Produce and Animal ByProducts Import and Export Corporation, a Chinese company, to become
the first company to import oolong tea into Japan. Oolong tea sales also
commenced.
Mar Developed and commenced sales of Canned Oolong Tea. Full-scale entry into
beverage market followed.
Feb Successfully launched Canned Green Tea.
1987
Jul
1989
Feb
1990
Mar Launched Oi Ocha Green Tea, the industry’s first green tea beverage in a PET
Established ITO EN (USA) INC. in Hawaii to play a key role in overseas
expansion.
Canned green tea line renamed under the Oi Ocha brand.
1992
bottle (1.5-liter).
May Initial public offering.
1993
Dec Issued convertible bonds worth 140 million Swiss francs.
1994
Jun Issued convertible bonds worth 100 million Swiss francs.
Sep Launched Jujitsu Yasai (Vegetables Galore).
Company A
Company B
Company D
ITO EN
Company C
Others
27.3%
20.1%
12.5%
11.1%
10.6%
18.4%
Cans
PET bottles (1L or more)
PET bottles (less than 1L)
Others
29%
30%
33%
8%
Main Overseas
Companies
ITO EN (USA) INC.
ITO EN (North America) INC.
ITO EN AUSTRALIA PTY. LIMITED
Mason Distributors, Inc.
ITO EN Asia Pacific Holdings Pte. Ltd.
Fujian New Oolong Drink Co., Ltd.
Ningbo Shunyi Tea Products Co., Ltd.
ITO EN BEVERAGE (SHANGHAI), LTD.
The History of ITO EN
300
2,000
The ITO EN Group
Main Domestic
Companies
Supermarkets
Convenience stores
Vending machines
Others
37%
21%
31%
11%
Sep
Established ITO EN AUSTRALIA PTY. LIMITED in Australia. Joint venture
established with Ningbo Shunyi Tea Products Co., Ltd. in China.
Stock listed on the Second Section of the Tokyo Stock Exchange.
1996
Sep Established joint venture Fujian New Oolong Drink Co., Ltd.
1998
Feb Stock advanced to the First Section of the Tokyo Stock Exchange.
2000
Oct Launched beverages in heatable PET bottles, a leading-edge development in the
industry.
2001 May Established ITO EN (North America) INC.
2004 May Launched Oi Ocha Koi Aji (Dark) and Ichinichibun no Yasai (A Day’s Worth of
Vegetables).
Oct ITO EN AUSTRALIA PTY. LIMITED built and commenced production at
new raw tea leaf factory.
2006
Jun ITO EN strengthened its U.S. business by acquiring shares in Mason
Distributors, Inc., a Florida-based supplier of nutritional supplements.
Oct Seeking to expand its coffee business, ITO EN made FoodX Globe Co., Ltd.
2007
2008
2009
2010
(now Tully’s Coffee Japan Co., Ltd.), which operates the Tully’s Coffee chain,
a consolidated subsidiary.
Sep Class-A preferred stock listed on the First Section of the Tokyo Stock
Exchange.
Mar Agreement signed with Groupe DANONE (France), giving ITO EN exclusive
marketing rights in Japan for evian natural mineral water.
Aug Launched black tea line, TEAS’ TEA NEW YORK.
Feb Established GREEN VALUE CO., LTD. to handle maintenance and
procurement of automated vending machines.
2011 May ITO EN made Chichiyasu Company a consolidated subsidiary to further expand
its dairy business.
2012
Jun Established ITO EN Asia Pacific Holdings Pte. Ltd. in Singapore.
Sep Established ITO EN BEVERAGE (SHANGHAI), LTD. in China.
Oct Established representative office in Vietnam.
ITO EN made NEOS Corporation a consolidated subsidiary.
2013 May Established ITO EN (Thailand) Co., Ltd. in Thailand.
Jul Established a joint venture for the manufacturing and sales of beverages in
Indonesia.
Sep TSUCHIKURA Co., Ltd. became a wholly owned consolidated subsidiary.
Oct Launched beverages in heatable PET bottles, a leading-edge development in the
Source: ITO EN Years: January–December
18
CORPORATE BOOK 2014
industry.
CORPORATE BOOK 2014
19
Printed on paper made with wood from
forest thinning. “Mori no Chonai Kai”
(Forest Neighborhood Association)—
Supporting sound forest management.
The front and back covers of this report are printed on
paper that contains recycled Oi Ocha tea leaves. The
interior pages are printed on Forest Neighborhood
Association “forest thinning support paper.”