Messages from External Directors

FY2025 marks the end of Kagome’s current mid- term management plan. I understand that Kagome’s long-term vision of transforming from a tomato company to a vegetable company is an expression of its intention to tackle the challenge of growing in larger markets and providing more value.
However, Kagome has not yet reached the point of applying this to its business and clearly outlining a growth strategy that leverages its strengths. My honest impression is that the company has been searching for a growth direction through repeated trial and error.
Yet, the addition of Ingomar, a tomato primary processing company with a major global presence, to the Kagome Group strengthens the Group’s influence in the global tomato processing industry, providing a good opportunity to once again think deeply about Kagome’s strengths and raison d’etre.
In aiming to become a company that can grow sustainably, Kagome needs a business strategy that capitalizes on its strengths. By concretely drawing up and realizing a convincing business portfolio as a “vegetable company,” Kagome will evolve into a “vegetable company” that achieves growth. In addition, as there is a need to resolve global issues such as climate change and food issues caused by population problems, I’m convinced that the role that Kagome can play will continue to grow. I have high expectations for the direction and growth strategy of the 2035 Vision that will support Kagome’s future.

During the time of former President Terada from FY2014 to FY2019, Kagome continued to transform in order to become a lean organization that could generate stable profits in any environment by eliminating redundancies and waste as much as possible. Under the leadership of current President Yamaguchi, who took the reins in 2020, Kagome faced the COVID-19 pandemic and unprecedented cost increases. Yet, the entire company has come together to secure profits by leveraging its well-honed management structure and the brand power it has cultivated over the years. At the same time, the company has expanded its tomato and other primary processing business in the United States through a major M&A deal, and accelerated research and development in the agriculture domain, such as the development and cultivation of new varieties of processing tomatoes and vegetables. In addition, Kagome has been exploring the possibility of starting a number of new businesses.
Looking back over the past decade since 2014, I believe that strengthening the driving force behind medium- to long-term business growth is a management issue that has emerged. The company is focusing particularly on two areas. First is creating a system to further grow the Domestic Processed Food Business. Second is strengthening its human capital foundation to continue exploring and challenging new possibilities for global growth by leveraging Kagome’s wide range of knowledge related to vegetables and agriculture, particularly its strength of tomatoes.
I will use my five years of experience as an External Director and Audit and Supervisory Committee Member to fully incorporate the perspectives of multiple stakeholders, including customers, employees, shareholders, suppliers and investors, and support the formulation and execution of Kagome’s strategies and tactics through to 2035.

In the five years since I joined Kagome’s Board of Directors as an External Director, the role of the Board of Directors and the role that independent external directors must play have become clearer. Through repeated discussions, including with experts, about what should be discussed at board meetings and what is expected of external directors there, a consensus has been reached between external directors and the executive side. As a result, I feel that we have created an environment in which the Board of Directors can allocate sufficient time to important agenda items that directly contribute to enhancing corporate value and hold high-quality discussions from multiple perspectives. For example, when it comes to major M&A deals overseas, external directors were able to eliminate information gaps by visiting the site and listening to talks by experts, and in discussions with relateddepartments, we were able to thoroughly debate and consider the significance of the target business in terms of the direction Kagome is aiming for and its relationship to capital policy. In addition, with regard to agenda setting, an important role of independent external directors, priorities are discussed at the Board of Directors meetings by incorporating proposals from investors and experts in addition to those from Directors and related departments. Following an open discussion between only the external directors and related departments, a meeting is planned to be held to further deepen the discussion among all Directors, including the executive side. Going forward, I aim to further deepen discussions with the executive side and contribute to enhancing corporate value by being more conscious of stakeholder perspectives.

Kagome aims to be a “strong company” capable of sustainable growth, using food as a means of resolving social issues. Kagome has the advantage of being able to seamlessly handle the entire process from plant variety development and cultivation to production (processing), product development, and sales. In addition, the company has a corporate culture that takes sustainability and CSR initiatives seriously.
The business environment surrounding Kagome is constantly changing, due to recent factors such as climate change and the global market environment. This makes it essential for the company to have management strategies and governance that can anticipate change.
In terms of future growth, under the vision of transforming from a tomato company to a vegetable company, Kagome is strengthening engagement with domestic customers through fan-based marketing, which has been itstraditional strength. It is also essential for Kagome to expand its business with global food service companies and processed food manufacturers in the International Business through product development based on market needs and a stable supply chain. In addition, it is also extremely important to promote diversity and inclusion, including organizational management and human resources strategies that harness diverse global human resources and generate innovation.
I will utilize my knowledge of global business, including many years of working abroad, and my experience in organizational management to deepen interactions with Kagome’s diverse stakeholders and contribute to the sustainable growth of the Company and the enhancement of its corporate value.