Summary of Q&A for Explanation of Salmon Farming Business In South America held on January 26, 2026

This was not a sudden opportunity. We have been continuously exploring salmon aquaculture sites and potential company acquisitions in Chile. Since last year, we obtained information that PY's owner was considering a sale of the company, and we began our evaluation through advisors and other channels.

We believe the key factor was our ability to realize the greatest synergies. Compared with other potential buyers, we identified more substantial synergy potential by combining PY's assets with SA's operational footprint and existing resources. In addition, our established relationship with PY and our early engagement may have contributed.

Since PY recorded a loss in FY2024, our priority is to resolve the key issues and restore profitability to a normalized level. We believe the main challenge is to fully realize synergies by leveraging SA's expertise and know-how.

Salmon require approximately two years to grow from seeds to harvest size, so FY2025 is expected to remain challenging. However, specific improvements are already underway, and we aim to achieve profitability from FY2026. We expect earnings normalization on a standalone basis from FY2027 onward, and we will further assess and refine the profit level for FY2027.

In FY2025, the impact of fish disease continued into the first half, resulting in shipments at small sizes. In addition, Atlantic salmon prices have remained relatively low. As a result, we expect losses to remain broadly similar to FY2024. That said, aquaculture performance has been improving since the second half of FY2025, and we have been seeing positive signs each month.

At this stage, further assessment is required, and it is difficult to provide specific figures. However, with aquaculture performance improving since the second half of FY2025 and salmon market conditions recovering, we aim to achieve profitability in FY2026 through continued operational improvements.

We expect the benefits of operational improvement, such as better aquaculture performance, lower feed costs, and improved seed quality, to become more evident in FY2027.

PY faced challenges with the feed and seed it had been using, which significantly impacted aquaculture performance and profitability. We have a solid understanding of the underlying causes and believe substantial earnings improvement is achievable through upgrading the quality of feed and seed. In addition, SA owns a feed manufacturing facility operating below full capacity. By integrating PY into the Group, we can reduce reliance on externally sourced feed while improving profitability by increasing feed manufacturing facility utilization.

The most significant issue was the decline in aquaculture performance, which prevented PY from fully utilizing its existing assets. Restoring full utilization is expected to deliver the most critical earnings contribution. In addition, by reallocating aquaculture sites and optimizing locations for each fish species, we believe total production volume can be increased. In addition, we aim to enhance aquaculture performance through initiatives such as improving feed quality and making greater use of freshwater farming.

We have deployed key personnel such as executives and division leaders from Nissui headquarters to the local operations, and integration work is progressing with near-daily communication between headquarters and the site. We also view PY's talented workforce as a critical asset and are working together to maintain motivation and unity. Furthermore, we are utilizing external advisors to execute integration with clearly defined timelines.

Regarding feed quality, we identified that the existing feed lacked specific essential nutrients. Correcting this has already begun to improve aquaculture performance. We have also listed other key issues and are advancing on-site operational improvements, supported by experienced local leaders developed within SA.

If the supply of Atlantic salmon increases, we will be able to expand sales to Brazil, where we have a sales group company. In addition, by combining PY's North American processing and sales base with Nissui's marine products trading channels, we aim to further expand our market presence in North America.

Direct synergies with North American household food products are limited, but we expect meaningful synergies with foodservice products and our marine products trading operations. In Europe, there is room to expand sales of value-added products, and we intend to create greater global synergies in the future.

Salmon aquaculture requires certain ongoing investments, such as renewing fish cages, which will entail some cost. However, we do not anticipate the need for significant large-scale capital expenditure.

Yes. The actual cash outflow is approximately 20 billion yen, and the remainder represents the assumption of debt.

Goodwill is still under review and has not yet been finalized. However, we do not expect goodwill to be as significant as initially assumed.

SA was mainly focused on trout salmon, resulting in a relatively narrow business scope. By adding PY, the proportion of Atlantic salmon will increase, and diversification across regions and aquaculture conditions is expected to mitigate risks such as natural disasters and fish disease. In addition, we are advancing technological innovation, seed improvement, and joint research with a university, aiming to build a business structure that reduces volatility over time.

First, given demand growth outpacing supply, we do not expect a high likelihood of short-term oversupply. Building on PY's diversified customer base, we will enhance market mix through Nissui's global network and leverage our manufacturing expertise to expand sales of value-added products such as sashimi-grade fillets, thereby differentiating ourselves from competitors.