Nichimo : IR Topics for the Year Ended March 31, 2022

Nichimo is listed on the Tokyo Stock Exchange Prime Market and continues to increase corporate value.

Nichimo was founded in 1910 and incorporated in 1919 to develop business with fishing and fisheries industries. The company was listed on the Second Section of the Tokyo Stock Exchange ("TSE") in 1962 and moved onto TSE's First Section five years later in 1967. Nichimo, with credibility with stakeholders built over the decades, is now listed on TSE's Prime Market Section following TSE's realignment of stock markets on April 4, 2022. Nichimo increases our corporate value further to adhere to TSE's continual listing criteria including their market capitalization criteria.

Our 137th mid-term management plan for years ending March 2025, Toward the Next Stage, has started this year. Our targets under the three-year plan include the sales target of JPY 130 billion, operating income of JPY3.3 billion, ordinary profit of JPY 3.5 billion and ROE at 10%.

The management plan is structured with three key strategies, namely, Connecting with People, Connecting Businesses and Connecting to the Future.

Connecting with People

It covers enhancement of internal control, IR activities and work environment of the Group. We strengthen our internal control, enhance information disclosure, increase brand awareness, implement work style reform and actively deploy female personnel.

Connecting Businesses

We strengthen collaboration among the Group companies, connecting all different business fields from ocean to dining, to upgrade our business and provide additional value. Our aquaculture business is a successful result of such collaboration. The Group provides comprehensive aquaculture services from supply of fry and feed, to farming and harvest management, and to marketing and sale of the farmed fish.

Connecting to the Future

It represents our commitment to sustainability. Nichimo and the Group companies fulfill our responsibilities to sustain marine resources and environments, pave the way for sustainable societies and achieve the SDGs.

We introduce you our three key sustainable development projects.

Inland aquaculture facility

Nichimo and partner companies plan to construct and inaugurate a new, environment-conscious aquaculture facility in Kyushu, Japan. It will be the largest inland salmon farm in Kyushu. Quality fish will be grown at the new facility and supplied to the market all the year round with no influence of weather or climatic constrains

Biomass fishing net

Nichimo supplies environment-friendly biomass net products to help solve marine plastic pollution and reduce CO2 emissions from manufacturing and disposal of conventional petroleum-derived fishing net.

Capital investment to secure stable supply of processed seafood products

We made large capital investments in our surimi, fishmeal, crab and scallop processing facilities in Hokkaido, Japan. The facilities are upgraded with labor and energy-saving technologies to realize highly efficient and continued processing of value- added products and steady supply of them to markets both in Japan and abroad.

Under the 137th mid-term management plan, we also aim to increase our dividend payout ratio to 30% by March 2025.

As the company listed on TSE Prime Market, Nichimo proceeds with the above and other actions and measures to increase our corporate value further.