Summary of Q&A for Results Briefing of the 3rd quarter of Fiscal Year 2021 held on February 4, 2022

The fish price is at a high level, especially salmon and trout. We would like to keep an eye on future developments to see if fish prices can maintain this level in the future.

Demand increased as frozen foods were expanded to those that were not used before the Corona disaster. We would like to take measures so that it can be used continuously in the future.

With rising raw material, labor costs, and distribution costs both in Japan and overseas, it is important how to penetrate price increases. In Japan, we will cover the cost increase by penetrating the price increase that has been implemented since February. Europe does not have enough production capacity for sales, so it is necessary to take measures for production. In North America, there are risks such as the possibility of increased costs due to changes in raw material transportation routes.

Shipments to the United States from the Kashima and Tsukuba factories began in September, but the degree of contribution is still low.

The application for approval of pure EPA raw materials for Europe will be handled by establishing a new specialized department from March.
In Southeast Asia, Mochida Pharmaceutical Co., Ltd. and Meiji Seika Pharma Co., Ltd. are already selling pharmaceutical products using our pure EPA pharmaceutical raw materials.
In China, clinical trials of pure EPA drugs are being conducted by Mochida Pharmaceutical Co., Ltd. and Sumitomo Pharmaceuticals (Suzhou) Co., Ltd., and our raw materials will be used once approval is obtained.

We are concerned about rising prices of raw materials and the possibility of a global economic downturn.