From Ocean To Dining, Challenges For The Better Future.
NICHIMO CO., LTD.
May 9, 2025
8091
Prime Market
NICHIMO CO., LTD.
Our Business Model and History
Business Environment and Business Opportunities
Reviewing the Previous Medium-term Management Plan
Outline of the New Medium-term Management Plan
KPIs, (2) Reconfiguring a business portfolio,
(3) Investment plan, cash allocation, return to shareholders
Business Strategies
Efforts for Non-financial Value
pp.3-8 pp.9-13 pp.14-18 pp.19-35
pp.36-42
pp.43-44
NICHIMO CO., LTD.
2
Contents
NICHIMO CO., LTD.
Our Business Model and History3
Marine
NICHIMO group
Food
Machinery Materials
Biotics
Distribution
NICHIMO CO., LTD. 4
Business Model: Platformer that Supports the Marine Products Industry through Supply Chains
Engineering company that started from manufacturing and selling of fishing nets, its original business, and now helps supply chains of the marine products industry and provides total support for the marine products industry and food
Our DNA is engineering capabilities accumulated for fishery and marine product industries
NICHIMO started from providing fishing nets and fishing gear, aiming to be Japan's top fishing net company.
It has a history of over 100 years (founded in 1919).
Office building at the start of the Company (Shimonoseki City, Yamaguchi Prefecture)
Founders Jinpachi Hayashida, Chiyoma Iwamoto
A fishing port crowded with deep-sea fishing (1950s)
Starting from providing fishing nets, the Company has expanded business progressively,
mainly in fishery and marine product industries.
The Company started from manufacturing and selling of fishing nets ("MO" of NICHIMO means nets).
With the 200-mile regulation in the 1970s serving as a turning point, the Company began to promote
diversification and expand business.
1910:
1919:
1961:
Supply of fishing nets
Distribution
business
Marine
business
Machinery
business
Materials
business
business
Biotics
business
Food
NICHIMO group
Provides total services on supply chains of fishing, processing, and selling of marine products
Marine business
Supply of ship fittings
Machinery business
Delivery of fish processing machines
Materials business
Delivery of materials
1961: to fishing vessels Selling of frozen
1967:
1980:
1999:
2010:
surimi (fish paste)
Started aquaculture
Research and development of fish feed
Started food
distribution
Food business
Biotics business
Distribution business
Early days
Marine business
[Sale of fishing net and
fishing gear]
Food business
[Sale of surimi]
Machinery business
[Sale of surimi
production machines]
Materials business
[Sale of cardboard boxes for transportation]
Now
[Raw materials and
[Multidiscipline engineering][Various films and materials]
[Also engaged in aquaculture]
Total support from providing seeds and seedlings, feed, and aquaculture machines and materials to providing information, processing, and selling
processed products]
Seamless management of raw materials,
processing, and sale. We provide processed foods that suit needs from domestic and overseas production bases.
We operate total management business by multidiscipline engineering such as building new factories that include production lines.
We build secure and comfortable living environments by providing various films and materials such as biodegradable films and packaging materials.
Each business has evolved and expanded its area to suit needs: Development from sales to supply chains management
Support various businesses that cover and connect all processes from ocean to dining
Fishing
Transportation
Storage
Processing
Packing
Sale
Consumers
Marine business Machinery business Materials business Food business
Product
development
Recycling of discarded fishing nets
Multidiscipline
engineering
Films
Blue carbon
Overseas food factory
Overseas building materials
Apply them to other than fishery and marine product industries
NICHIMO CO., LTD. 8
Our Development Process: Support Supply Chains of Fishery and Marine Product Industries
fishery's supply chain: Cover and connect all processes from ocean to dining
NICHIMO CO., LTD.
Business Environment and Business OpportunitiesGrowth potential of the marine products industry is high, especially for aquaculture
Farmed fish of the world, the production volume of which has increased four times over 30 years, are expected to grow strongly in production mainly in Asia as an environmentally friendly source of protein.
Important seafood system that plays a key role in food security.
(million tons) 240
210
180
150
120
90
60
30
Aquaculture
Food and Agriculture Organization of the United Nations (FAO)
tons for 2022
223.22 million
Fishery and aquaculture production in the world
Inland
aquaculture
Marine aquaculture
Inland fishery
Marine
2000年
fishery
An industry that is promising in not only developed countries but also economically
developing areas (especially Asia).
Greenhouse gas emissions per 100 gram of protein
0
10
20
30
40
50 (Kg)
Beef
Pork
Chicken
Farmed fish
Source: Created from Our World in Data. Converted CO2values are given.
Greenhouse gas emissions of farmed fish are
small
2030: Set a target of increasing aquaculture production by 35% or more from that in 2020.
牛肉
59.18
豚肉
million tons
鶏
養殖魚
71.75
million tons
0.0
0.2
0.4
0.6
0.8
1.0
(billion tons)
2022
Asia
2000
Asia
Asia
North and South America
Europe
Africa Oceania
Source: Created from data of FAO
Asia accounts for
nearly 90% of the production of farmed fishery
products in the world
11.32
(億t)
million tons
2022年
80.97
million tons
1960 1970 1980 1990 2000 2010 2022
Source: Created by the Fisheries Agency on the basis of Fishstat (Global capture production, Global aquaculture production) by FAO (other than Japan) and Fishery and Aquaculture Production Statistics by the Ministry of Agriculture, Forestry and Fisheries (Japan)
アジア
南北アメリカ
ヨーロッパ
アフリカ
オセアニア
NICHIMO CO., LTD. 10
Up until now (until FYE3/2025)
From now on (from FYE3/2026)
The COVID-19 pandemic is under control.
Economic conditions are on a gradual recovery trend thanks to increases in demand for inbound tourism and improvement of employment and income situations.
Further increase in demand for inbound tourism
Japan is a depopulating society due to a declining birthrate and aging population; but worldwide, population is growing and stable sources of protein supply are required.
Business opportunities
Growing demand for marine products is social demand.
They are environmentally friendly with benefits of CO₂ reduction and are also sustainable sources of protein supply.
There will be more business opportunities in various support areas that support the
demand for marine products.
Pay attention to aquaculture (especially inland aquaculture), biomass fishing nets, and other businesses in growth areas.
Business Environment and our Business Opportunities:
There Will be Growing Demand for Marine Products
Our Feature and Strength: Well-versed in Fishery and Marine Product Industries
Engineering company that started from manufacturing and selling of fishing nets, its original business, and now supports supply chains of marine products industry and provides total support for marine products industry and food
Technology and know-how accumulated for fishery and marine products industries
115 years of history starting from providing fishing nets and fishing gear (founded in 1910)
Engineering for the environmentally friendly marine products industry, a growth industry
For example, support the commercialization of inland aquaculture and biomass fishing nets, which are next-generation business, on the basis of the marine products industry, a growth industry where protecting the environment and securing good-quality protein sources can go hand in hand.
Business development and networks that were derived from fishery and marine product industries and have diversified into food
We have established a unique business platform that covers and connects all processes from
ocean to dining*
Our business taking advantage of the know-how obtained from the fishery and marine products industries can be secondarily applied to downstream consumers and users of restaurants, etc.
* A company that provides total support for sustainable supply of marine products from fishing to provision through its unique supply chain know-how (Business development = Pursuing SDGs)
* With the 200-mile issue as a turning point, we started to apply the fishery-based know-how of food processing equipment and food business to inland aquaculture.
Historical paradigm shifts and history of our group's challenges
Fishery revolution and economic modernization (1920s)
We contributed to the modernization of the marine
products industry by introducing trawling and providing fishing nets and fishing gear.
: Aiming to be Japan's top fishing net company, we set
bases nationwide and provided all materials related to fishing vessels.
200-mile regulations (1970s)
We responded to 200-mile regulations, which are international fishery regulations, rebuilt services, and developed new technologies and markets.
: We changed into a trading firm specializing in marine
products.
From catching to raising fish (2010s)
We built unique integrated operations from seafood processing to distribution in response to environmental changes such as rising ocean temperatures.
: We have developed business models as a business
supporter for the marine products and fisheries industries and as a platformer that covers and connects all processes from ocean to dining.
And the future ...
Consider a new paradigm shift, such as depletion of marine environments and resources, as an opportunity, and provide genuine technologies and sophisticated services, aspiring to even greater leaps forward
We will continue to tackle challenges in any period.
Our Business Concept: Supporting the Fishery and Marine Products Industries Develops Our Business
Inherit a can-do spirit by which we have changed and customized services to suit paradigm shifts
NICHIMO CO., LTD.
Reviewing the Previous Medium-term Management Plan14
Basic Concept
Create new value and try to improve corporate value through management that takes into account three "connections" based on the management policy of From Ocean To Dining.
Connecting to the Future
Increase corporate value through expanding the scale of the business
Promote sustainable management (response to SDGs)
Become established in the Tokyo Stock Exchange Prime Market
Some positive results in strengthening business in the
Results
major four businesses
Food: Stable processing of crabs and scallops
Marine: Development and commercialization of aquaculture systems
Machinery: Improvement of personnel structure to boost overseas sales
Materials: Stable supply of packaging and agricultural
materials
Aquaculture business (inland aquaculture) started First shipment of Miral salmons (October 2023)
Cleared the listing standards of the Tokyo Stock Exchange Prime Market
Free-float market capitalization of ¥12.5 billion (end of
FYE3/2025)
Connecting
Businesses
Create new value such as aquaculture business
Further enhance overseas business (aim for an overseas sales ratio of 20%)
Connecting with People
Strengthen group's internal control
Strengthen relationships with shareholders through investor relations activities
Create more comfortable working environments
Promotion of sustainable management
Establishment of a sustainability promotion committee. Endorsement of UNGC. CDP score: C (FY2024)
Issues
Aquaculture business (inland aquaculture) is still only halfway through
The plan for increasing production was carried over to the
New Medium-term Management Plan.
Delay in overseas business development
We should get overseas business development into full gear together with business expansion, centering on machinery.
Reviewing the Previous Medium-term Management Plan (FYE3/2023 to FYE3/2025)
Some positive results in strengthening business and creating profits
Pre-period of previous plan | Previous medium-term management plan (FYE3/2023 to FYE3/2025) | ||||
(Millions of yen) | FYE3/2022 (136th) | FYE3/2023 (137th) | FYE3/2025 (139th) | ||
Result | Result | Result (1) | Target of the plan (2) | Achievement rate (1)/(2) | |
Net sales | 115,469 | 126,829 | 133,900 | 130,000 | +3.0% |
Gross profit | 11,319 | 11,315 | 12,228 | - | - |
SG&A expenses | 8,118 | 8,441 | 9,225 | - | - |
Operating profit | 3,201 | 2,874 | 3,002 | 3,300 | (9.0%) |
Operating margin | 2.8% | 2.3% | 2.2％ | 2.5% | (0.2 ppt) |
Ordinary profit | 3,611 | 3,220 | 3,601 | 3,500 | +2.9% |
ROE | 14.8% | 11.1% | 9.1％ | 10% or more | (0.9 ppt) |
Performance Results of the Previous Medium-term Management Plans (FYE3/2023 to FYE3/2025)
Some positive results in establishing the trend of revenue growth and maintaining stable earning power (ability to generate profits). ROE is less than 10%.
A market
capitalization of
¥13.01 billion (March 31, 2022)
¥3,000
¥2,500
¥2,000
Volume (NICHMO) NICHIMO (TSE)
前中計期間中の株価推移グラフ
（2023年3月期〜2025年3月期）
Resolution to issue the first equity warrants (August 26, 2022) (Maximum dilution
factor: 21.32%)
Conducted a 2-for-1 stock split of common stock (January 1, 2024)
240,000 shares
210,000 shares
180,000 shares
150,000 shares
120,000 shares
Market capitalization:
¥17.25 billion
¥1,500
90,000 shares
60,000 shares
¥1,000
30,000 shares
shares
04/2022
06/2022
08/2022
10/2022
12/2022
02/2023
04/2023
06/2023
08/2023
10/2023
12/2023
02/2024
04/2024
06/2024
08/2024
10/2024
12/2024
02/2025
¥500
Stock Price Movements during the Previous Medium-term Management Plan
Corporate value (stock valuation) has improved steadily, partly because of recognition improvement based on
active disclosure of information.
The share price is
¥1,915 (March 31, 2025) with a PBR of 0.53
Number of shares outstanding (unit) | Total market value of shares outstanding (millions of yen) | Ratio of shares outstanding (%) | Average daily trading value (millions of yen) | ||
Our state of compliance and its progress | June 30, 2021 (As of the base date of transition) | 24,555 | 5,028 | 64.8 | 7 |
As of March 31, 2023* | 28,671 | 8,840 | 67.4 | 36 | |
As of March 31, 2024* | 64,023 | 13,996 | 71.0 | 86 | |
As of March 31, 2025* | 63,877 | 12,517 | 70.9 | 68 | |
Prime market listing standards | 20,000 | 10,000 | 35.0 | 20 | |
* The number of shares outstanding is estimated by us from the list of shareholders at the end of March.
The total market value of shares outstanding is estimated by the average of final share prices in the period from January to March of each year.
Stable profits to improve corporate value. Aggressive return to shareholders. Active investors relation activities centering on financial results briefing (December 2021).
Create expectations of growth in sales and profits from the recognition of business activities and growth strategy in the stock market.
We issued the first equity warrants (August 2022) and conducted a 2-for-1 stock split (January 2024).
Try to stabilize the number of shares outstanding and improve the total market value of shares outstanding.
Both the trading value and the total market value of shares outstanding cleared the prime market listing standards (as of March 31, 2024).
We meet the Prime Market listing standards ever since (as of March 31, 2025) .
Changes in Items of Prime Market Listing Standards during the Period of the Previous Medium-term Management Plan
NICHIMO CO., LTD.
Outline of the New Medium-term Management Plan (FYE3/2026 to FYE3/2028) -Breaking Through Toward 202819
New, additional structure to pursue ideal state in next 10 years
Corporate Philosophy
Purpose
Management strategy (Company-wide strategy)
Core beliefs since Nichimo's founding
＋
In the spirit that a company is a public organ of society, we widely contribute to societal development with technologies and services that lead the industry.
Ideal state and significance in the next 10 years From Ocean To Dining,
Challenges For The Better Future
Business portfolio management, investment plans, etc.
Purposes by business and division
Strategies by
business and division
Ideal state and significance for each business and division in the next 10 years
Strategies for each business and
division
Implement the New Medium-term Management Plan (FYE3/2026 to FYE3/2028)
under the new purpose-based structure along with our corporate philosophy
Support supply chains of the fisheries industry that supply sustainable food resources. Accelerate growth by creating and expanding new businesses in the fisheries industry where a paradigm shift is occurring.
Corporate
Pursue corporate philosophy
value
Backcasting
Next medium-term management plan
New Medium-term
Management Plan
Purpose
Next-next medium-term management plan
2035
Creation and growth of new businesses (inland aquaculture, environment friendly materials, etc.)
Further growth of existing businesses
FYE3/2025
FYE3/2028 FYE3/2031
FYE3/2034
Growth of demand for marine products (including overseas)
Backcasting from "an Ideal State (Purpose)" for 10 years in the future
The current medium-term management plan is a breakthrough over the next three years that looks ahead the next ten years (Breaking Through Toward 2028).
Put more energies into supporting supply chains of the marine products
industry, which is our core business.
As a solution partner for the marine products industry, we have pursued derivative development of business taking advantage of know-how for marine products and fisheries industries, focusing on profitability (operating profit) rather than scale.
Reconfigure a business portfolio so that profit structure is well balanced. Food business, our core business, which sells marine products, is inevitably affected by market and foreign exchange conditions.
Make profit stability stronger through profit growth of both the marine and machinery businesses.
Give positive consideration to merger and acquisition if it helps the
business expansion stated above.
To increase profitability, give positive consideration to merger and acquisition of businesses compatible with ours (synergy effect).
Basic Policy of the New Medium-term Management Plan:
Achieving Both Core Business Enhancement and Profit Structure
Support the Japanese marine products industry over whole supply chains from a long-term perspective.
Develop business areas aggressively in the marine products industry as well as its related areas.
NICHIMO CO., LTD.
KPIs (Three Years Later, Ten Years Later)23
(1) ROE and (2) ROIC in terms of improving corporate value (response to realize management that takes into account stock prices and the cost of capital)
pbr ＝ (1)ROE x per
Improvement of return on equity increases "ROE - Cost of Shareholders' Equity," enhancing corporate value.
Consider stock repurchase to continue and control an ROE of 10%
or more.
ROE ＝ ROIC X Financial leverage
(2) ROIC ＝ Operating profit margin (after tax) X Turnover of invested capital
Think about profit creation and profitability improvement at the
same time so that they are appropriate to invested capital.
In the New Medium-term Management Plan, we plan to adopt "ROIC by business" for progress management.
(3) D/E ratio in terms of financial discipline
We have a business characteristic that interest-bearing liabilities increase temporarily because of the need to secure an operating fund for purchasing marine products in the food processing segment. At the same time, however, we attach importance to the D/E ratio to observe financial discipline. Our target D/E ratio is 1.0 or less.
Key Management Indexes: (1) ROE, (2) ROIC, (3) D/E Ratio
An ROE of 10% or more, an ROIC of 4.5% or more, and a D/E ratio of 1.0 or less for the final year of the Medium-term Management Plan FYE3/2026 to FYE3/2028
Long-term vision (until FYE3/2035) New Medium-term Management Plan (until FYE3/2028)
(Millions of yen) | FYE3/2025 Previous Plan's Target | FYE3/2025 Result | FYE3/2026 Forecast | ||||
FYE3/2028 New Plan's Target | FYE3/2035 longterm vision | ||||||
Net sales | 130,000 | 133,900 | 135,000 | ||||
155,000 | 230,000 | ||||||
Operating profit | 3,300 | 3,002 | 3,300 | ||||
4,300 | 7,700 | ||||||
Operating margin | 2.53% | 2.24% | 2.44% | ||||
2.77% | 3.35% | ||||||
Ordinary profit | 3,500 | 3,601 | 3,500 | 4,500 | 7,900 | ||
ROE | 10％ or more | 9.1% | - | 10% or more | 12% or more | ||
ROIC | - | 4.0% (provisional) | - | 4.5% or more | 6.0% or more | ||
D/E ratio | - | 1.2 | - | 1.0 or less | 0.9 or less | ||
Medium- and Long-term KPIs (New Medium-term Management Plan,
and Long-term Vision)
Previous medium-term management plan: We laid the foundation for keeping operating profit at the ¥3.0 billion level.
New Medium-term Management Plan: Bring operating profit to the ¥4.0 billion level. Secure a more solid foothold toward a profit of ¥7.7 billion ten years later.
(Millions of yen) | FYE3/2025 Previous Plan's Target | FYE3/2025 Result | FYE3/2026 Forecast | |
Total | Net sales | 130,000 | 133,900 | 135,000 |
Operating profit | 3,300 | 3,002 | 3,300 | |
Food | Net sales | 85,000 | 84,102 | 84,500 |
Operating profit | 1,450 | 1,953 | 2,100 | |
Marine | Net sales | 19,000 | 22,377 | 23,000 |
Operating profit | 600 | 755 | 900 | |
Machinery | Net sales | 13,000 | 15,618 | 15,000 |
Operating profit | 850 | 1,456 | 1,500 | |
Materials | Net sales | 9,000 | 9,043 | 9,500 |
Operating profit | 300 | 382 | 400 | |
Biotics | Net sales | 500 | 293 | 350 |
Operating profit | 75 | 17 | 20 | |
Distribution | Net sales | 3,500 | 2,352 | 2,550 |
Operating profit | 25 | 108 | 120 | |
Corporate expenses | - | (1,760) | (1,830) | |
FYE3/2028 New Plan's Target |
155,000 |
4,300 |
95,000 |
2,480 |
30,500 |
1,400 |
15,000 |
1,400 |
11,000 |
600 |
800 |
50 |
2,500 |
50 |
(1,680) |
Note: Net sales and operating profit in other areas are omitted.
Medium- and Long-term KPIs (by Segment)
Level out the proportion of sales of Food, Marine, Machinery, and Materials businesses to achieve a balanced revenue base.
NICHIMO CO., LTD.
Key to the Medium- and Long-term Growth Strategy: Reconfiguring a Business Portfolio27
Present situation seen from earnings performance Present situation of major four businesses
In the previous medium-term management plan,
we improved business foundations to generate an operating profit of ¥3.0 billion.
Some positive results
In the New Medium-term Management Plan, we perform backcasting from the long-term goal (operating profit of ¥7.7 billion) and set a target after three years of developing business foundations that create ¥4.0 billion in a stable manner.
Note: Challenges to tackle are to make existing businesses grow, make new growth investments, strengthen governance, etc.
Food business: Assets tend to rise temporarily because
of the need to purchase marine products.
Marine business: We have promising businesses such as aquaculture and biomass fishing nets, but need growth areas that grow in the medium- and long-term.
Machinery business: The demand for food processing machines is strong mainly for the food-service industry, but it is necessary to receive orders in a stable manner.
Materials business: We need new services and market entry for profit growth of films and sheets.
Expand the scale and enhance the profitability ratio of our individual business divisions, and pursue reconfiguration of a business portfolio in terms of profit growth and management.
Our Challenge: the Necessity of Improving a Business Portfolio
As we have developed as a company that supports supply chains of the marine products and fisheries industries, our business divisions vary in size and exhibit varying levels of profitability. We think that well-balanced management is necessary to improve our entire corporate value.
Marine business
Machinery business
Profitability improvement
Aquaculture
Environmentally friendly materials
Overseas development
Growth areas
Growth areas |
|
Profit stabilization |
|
Profitability improvement |
|
Structure enhancement |
|
Growth potential
High
Structure enhancement
Biotics business
Distribution business
Profit
stabilization
Food business
Materials
business
Low
Low
High
Profitability
View toward Reconfiguring a Business Portfolio
Classify business and products in a matrix form and implement appropriate portfolio management.
Aggressively invest human resources and money in Growth Areas, Profitability Improvement, and Profit Stabilization.
FYE3/2025 (result) Operating profit: ¥3.0 billion
FYE3/2028 (target of the New Medium-term Management Plan) Operating profit: ¥4.3 billion
FYE3/2035 (ten years later) Operating profit: ¥7.7 billion
Medium- and Long-term Changes in Breakdown of Operating Profits
In the medium- and long-term, aim to build a well-balanced profit composition in the three core businesses: Food, Machinery, and Marine.
Profits ten years later (FYE3/2035) will expand more than 2.5 times the current level.