Summary of Q&A for Results Briefing of the 2nd quarter of Fiscal Year 2021 held on November 12, 2021

We are considering raising prices only for items for which cost-increasing factors such as raw materials are clear. Although profits are expected to decline by 1 billion yen compared to the second half of last year, it will be difficult to recover all during this term even if the price increase is realized.

Sales of frozen foods and surimi-based products for home use are strong, and we believe that they have gained some support in the demand for nesting. We would like to carry out campaigns and raise prices so that the willingness to purchase will not decline.

In North America, shrimp products for home use, which were rarely handled so far, are growing, and sales for major restaurant chains and Asian foods for commercial use are also rising. In Europe, sales centered on France have expanded to Germany and the three Benelux countries, and the company is responding to growing categories such as chilled fried white fish and alternative proteins.

It gained competitiveness by improving productivity during periods of poor performance. That has led to the current high profits.

Alternative production is being carried out at other plants, and recovery is expected to be possible in the second half of this fiscal year. The future production system is currently under consideration.

At present, several tens of tons have been shipped. We are currently negotiating the sales volume for next year and beyond.

Depending on the demand in the United States and the trend of drug approval in Europe and China, we are considering making it possible in the next medium-term business plan.

Since the standards for pharmaceutical raw materials have been set as products, the quality will be the same no matter which company makes them. However, since the manufacturers that can supply and their production capacity are limited, our strength is that we can respond to future increases in demand in Europe and China.

We are currently studying the mission of the Nippon Suisan Group and the long-term vision for 2030 with a backcasting approach. We will put global expansion and sustainability management at the center of the strategy.