Integrated Report (nichirei IntegratedReport2025 all)

Nichirei Group

INTEGRATED REPORT

2025

1

Our Advantages and Aims

‌Nichirei Group Integrated Report 2025

Foods Business

(Processed Foods / Marine, Meat and Poultry Products)

Temperature-controlled Logistics Business

Bioscience Business

Creating Savory Moments

Results of Initiatives

1

(Data Section)

The Nichirei Group conducts business with the universal desire to "deliver delicious moments."

Combining the Foods Business, Temperature-controlled Logistics Business, and Bioscience Business, we will continue to be a company that provides true satisfaction.

Mission

Focus on Lifestyles,

and Provide True Satisfaction

Vision

We will continue to support good eating habits and health by leveraging our state-of-the-art manufacturing practices that optimize nature's bounty, along with our leading-edge logistics services.

Sustainability Policy

https://www.nichirei.co.jp/english/corpo/management/responsibility.html

Our Advantages and Aims

‌Nichirei Group Integrated Report 2025

Milestones of Value Creation (Nichirei Group's History)

The Nichirei Group,

a True Satisfaction Provider

We have provided true satisfaction by identifying the needs of individuals and society, enabling us to create the products and services required in each era.

2010

The Nichirei Group will continue to support eating habits through business activities covering a wide range of foods.

Conducting management with a medium-

2020

Becoming a company that creates new customer value and helps resolve social issues to achieve a sustainable society

Results of Initiatives

2

(Data Section)

Processed Foods

Sales of frozen foods in Japan1

No.1 No.1

Ranking of Honkaku-Itame-Chahan (fried rice) sales in the frozen fried rice category for 24 consecutive years since its launch2

Temperature-controlled Logistics

Share of refrigerated warehouse capacity in Japan3

1945 1960

The spread of electric refrigerators made frozen foods more available. Contributed

1980

Increasing interest in frozen foods as more women began working outside the home. Actively developed biotechnology and other new businesses.

2000

Addressing diversifying eating habits and consumer concerns about food safety.Accelerating business operations by converting to a holding company structure.

to long-term perspective that addresses simplifying food preparation, increasing health consciousness, Japan's labor shortage, and globalization

Nagoya Minato DC

No.1

Share of global refrigerated warehouse capacity4

Nippon Reizo was established to take over the marine products, refrigeration, and ice-making businesses. With a mission to provide a stable food supply after World War II, diversified our businesses during the consumer boom in the 1950s.

to the government-led creation of a cold chain logistics network to maintain food freshness during transport from producing areas to stores.

Rotating poultry house at the Kamagaya Laboratory

Opened Terrace Nichirei

Entered the acerola business

Newspaper advertisement announcing the change in the Company's name to Nichirei Corporation

Japanese pure-bred

Junwakei chicken

Initial Honkaku-Itame-Chahan (fried rice)

Global Innovation Center

Began frozen foods operations in North

America

COVID-19 antigen test kit

FY2025

Net sales 702.1

billion

No.5

Marine, Meat and Poultry Products

Number of countries for food procurement

38.3

Approx. 30

Headquarters building at the time of establishment

(a restaurant) at the Osaka Expo

Operating

profit billion

Provided frozen foods and other products to the Antarctic expedition

Overseas sales ratio

23.6%

Bioscience

Number of countries to which

Nichirei Group Net Sales

*Consolidated net sales since FY2005.

ROIC 7.4%

%

ROE 9.6

N-Histofine brand molecular diagnostic products are shipped

More than 25

1946 1951

1961

1971

1981

1991

2001

2011

2025 (FY)

1 Source: From a July 31, 2025 article in Reishoku Nippo, published by Shokuhin Sangyo Shimbunsha Co., Ltd. 2 Source: INTAGE SRI+ Frozen Prepared Fried Rice Market, Mar 2017 - Feb 2025, cumulative sales amounts for each year / INTAGE SRI Frozen Prepared Fried Rice Market, Mar 2001 - Feb 2017, cumulative sales amounts for each year 3 Source: Refrigerated Warehouse Statistics 2023 by the Japan Association of Refrigerated Warehouses (Figures include warehouse capacity for each Group company.) 4 Source: The Global Top 25 List, April 2025 materials by the Global Cold Chain Alliance (GCCA)

3

Our Advantages and Aims

‌Nichirei Group Integrated Report 2025

Refined Unique Competitive Advantages

Comprehensive Group capabilities based on our nation-wide cold chain and production bases

Unique Value Chain Deeply Connected to Foods

Results of Initiatives

3

(Data Section)

The Nichirei Group responds to diverse customers' needs by operating businesses in a wide range of areas, including food procurement, processing, logistics, and sales.

Since its establishment, the Group has leveraged its comprehensive capabilities of the functions in store as a group, developed a number of new fields, and achieved sustainable growth while adapting to changes in the social and economic environment.

Capabilities as a food and logistics pioneer

Capabilities as a food and logistics pioneer

Sales

R&D,

Capabilities in food processing, production technology

and temperature-controlled logistics services

Capabilities in food processing, production technology

and temperature-controlled logistics services

Procurement

product development and planning

Processing and production

Logistics

Capabilities as a food and logistics pioneer

A history and heritage of continuing to take on challenges to help resolve social issues

Capabilities in food processing, production technology and

temperature-controlled logistics services

Unique materials procurement network

Japan's leading advanced low-temperature logistics services

Development and production technology capabilities to reproduce deliciousness

Human resources with a high level of expertise and experience

Comprehensive Group capabilities based on our nation-wide cold chain and production bases

Leveraging scale advantages in the two core businesses through transportation and delivery network functions and production bases covering all across Japan

Our Advantages and Aims

Nichirei Group Integrated Report 2025

Refined Unique Competitive Advantages

Results of Initiatives

4

(Data Section)

Sustainable procurement capabilities built up over the long history

Working with suppliers, we have undertaken the production of ingredients. Starting with the procurement of herrings caught in Hokkaido, we have spent 80 years increasing the number of suppliers who share the same values of freshness, taste, safety, security, health, and sustainability. The Group now provides a variety of ingredients to restaurants, food companies, etc. via procurement networks spanning approximately 30 countries. Our desire to spread special selected ingredients to the world is also reflected in our "ingredients with future-oriented value," such as shrimp farming that coexists with mangrove forest ecosystems and beef production that contributes to reducing methane gas emissions. As a result of the integration of the foods business, we should be able to diversify the gradation of the degree of processing by using ingredients, which have been sold externally, as raw materials in the processed foods business. Our attachment to special selected ingredients has led to collaboration within the Nichirei Group.

Amani-no-Megumi Beef ( Pages 55-56)

Inochi-no-Mori-Project

A project for sustainable supply of shrimp and coexistence with the global environment

https://www.nichireifresh.co.jp/inochinomori/

Capabilities for marketing and reproducing deliciousness for the future of the frozen food industry

The frozen food industry is expected to grow further in the future, and the number of new entrants is increasing accordingly.

Under these circumstances, our competitive advantages lie in our marketing capabilities, which enable us to create products that accurately capture market trends and needs, and in our ability to design the desired deliciousness of our products and reproduce it with our own production lines.

Product Line & Marketing Strategy, a division to promote the entire process from product strategies planning to development, consists of members with diverse experience in development and sales, featuring a structure to encourage ideas from multilateral perspectives. Our expertise in each product category is enhanced through collaboration among R&D and production divisions and has become the source of Nichirei's unique competitive advantages.

We will continue to pursue our passion for foods and enhance the future potential of the frozen food industry with our capabilities for marketing and reproducing deliciousness.

Production sites that realize deliciousness

In pursuit of large-scale production and deliciousness at the same time―production divisions produce many products on a daily basis, while we promote efficiency and systematization. But our most important priority is to pursue delicious flavor. Equipment is the key to achieving deliciousness through mechanization. A part of it has been developed internally, with adjustments made by factories' engineers on a daily basis. We are proud of these as one of our strengths that are hard for other companies to copy. Production divisions get excited and challenged when new product lines are introduced. For the equipment for new products, operations/instructions are not written in a textbook.

Bringing together all of our capabilities, including accumulated experience and knowledge and cooperation among divisions, while taking on new challenges, we play an important role to "create savory moments" in the supply chain.

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Our Advantages and Aims

Nichirei Group Integrated Report 2025

Refined Unique Competitive Advantages

Results of Initiatives

5

(Data Section)

A sense of mission as a food infrastructure company that can handle all the temperature-controlled logistics

Proposal-based sales capabilities that leverage feedback from

the frontline

Customs clearance, storage, transportation and delivery, thawing and freezing, facilities engineering, and 3PL1―we are unparalleled in offering one-stop temperature-controlled logistics services.

As a company with the largest share of cold storage capacity in Japan, we have played a role as a social infrastructure supporting the food cold chain. Our customers need us to: "not only store but also collect and deliver products;" "thaw frozen foods at chilled temperatures;" and "sort products delivered from multiple manufacturers by destination and deliver them to supermarkets." Since our foundation, we have acted as a "brain" for customers to develop logistics strategies and carefully respond to their requests. Thereby, we have continued to refine our operational capabilities and ability to develop superior quality and valuable services. In this process, we have created a logistics service of choice that meets the needs of society: a one-stop service2, "SULS," and logistics platform for frozen foods.

We are particular about product storage, which restricts people from entering and leaving the warehouse to prevent the temperature inside from rising, and arrange vehicles and work with delivery drivers to deliver products at the temperatures specified by customers. Temperature control is the most important quality standard because the products we handle are foods. At the root of our emphasis on quality is our sense of mission to support social infrastructure. This sense of mission is carried through both in Japan and overseas.

In addition to our ability to reproduce deliciousness, one of our features is the wide range of food products that we handle. The integration of foods business will also expand the range of processing levels for commercial use such as food services (restaurants), delicatessen items in supermarkets, and school lunches, as well as for household-use. This wide range of products is an advantage, but it is not the only reason why we are the leading frozen food company in Japan. Different customers have different challenges and goals, so it is essential to propose products that suit them. The Sales Department, from new employees to top management, pays frequent calls on customers. This is because we can directly listen to customers' voices about whether there are any concerns or problems with operations after the product is introduced. The feedback we receive is used in collaboration with Product Line & Marketing Strategy Division to develop our next proposals. We hope you will enjoy our products, which are displayed in stores carrying the hopes and thoughts of many people and support the backyard of commercial kitchens.

A remote monitoring system for chillers that was developed utilizing the expertise of our engineers ( Page 39)

Evaluation of social impact of the SULS next-generation transportation and delivery system ( Pages 52-54)

1 3PL: Third-party logistics

2 One-stop services: A comprehensive end-to-end service from ocean transportation to customs clearance, storage, value-added services, and transportation.

Our Advantages and Aims

‌Nichirei Group Integrated Report 2025

Realization of Group Synergies

Each Company's Strengths Open Up New Markets

Integrating Processed Food Business and Marine, Meat and Poultry Products Business into Foods Business

Since its reorganization in 2005, the Nichirei Group has focused on accelerating management decision-making and business development within each operating company.

By combining the strengths of each company, we now have reached a stage

of "expanding earnings by leveraging group synergies." By combining the strengths

Strengths

Capabilities for reproducing deliciousness and

developing

and networks of the processed foods business and the marine, meat and poultry products business, we will integrate all functions from procurement to sales by April 1, 2026, with the aim of taking the Nichirei Group to a new stage.

Processed Foods Business

Marine, Meat and Poultry Products Business

Common strengths

Strengths

Diverse sales channels

Ability to procure materials

Interview about the integration of foods business ( Pages 46-48)

Results of Initiatives

(Data Section)

6

Creating global business opportunities

• Expanding sales of marine products for commercial use in North America

• Strengthening export functions

Reducing risks by strengthening raw material procurement capabilities

• Securing stable procurement of raw materials with a focus on chicken

Enhancing customer acquisition

capabilities

• Strengthening the sales structure by utilizing mutual sales channels

• Expanding product lineup with different degrees of processing (ingredients, lightly processed products, and finished products)

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Our Advantages and Aims

Nichirei Group Integrated Report 2025

Realization of Group Synergies

Results of Initiatives

7

(Data Section)

Foods Business × Temperature-controlled Logistics Business

Expanding Nichirei's Unique Synergies

Strengths of each business

Refined Unique Competitive Advantages

Leveraging the respective scale advantages

to achieve group synergies

• Locating food factories and refrigerated warehouses in vicinity helps improve the efficiency of logistics from a factory to a refrigerated warehouse

  Temperature-controlled Logistics Business

• Using cargoes of the foods business as a base (base cargo) to achieve more efficient and stable delivery operations

• Leveraging the trunk-line infrastructure to

acquire more customers

Future strategy

Strengthen synergies through the locations of food factories and refrigerated warehouses in vicinity

Areas planned under the new medium-term business plan (Tokyo metropolitan area, Kansai, and Kyushu)

Our Advantages and Aims

‌Nichirei Group Integrated Report 2025

Towards 2035 (Long-term management goal)

How Should We Proceed for the Next 10 Years?

Results of Initiatives

8

(Data Section)

New Long-term Management Goal

N-FIT 2035

Nichirei Future Innovative Tactics

Strengthen core categories and build differentiated food supply chains

What the Nichirei Group wishes to be in the future and how to get there. We put

this together as "N-FIT (Nichirei Future Innovative Tactics) 2035." In order to establish long-term competitive advantages and continue to support good eating habits and health of people around the world, we will leverage competitive advantages and group synergies we have cultivated, expand overseas business, and reinforce

the base to sustain those. Combining these multiple innovative tactics for promotion, we will aim to strengthen profitability and improve capital efficiency to achieve

N-FIT 2035. Based on a desire to "create savory moments," the whole Nichirei Group will advance to become an indispensable part of the world.

Further realization of competitive advantages and synergie

Acceleration of overseas business expansion

Strengthening our global business foundation

Reduction of environmental impact to enhance corporate value

Logistics platform for frozen foods that is highly aligned with the foods business

Achieve automation and labor saving through the introduction of new technologies and higher capital efficiency based on an asset-light model

Establish a foods business base utilizing an integrated production-sales model in Japan

Establish a business base with one-stop services and cross-border transportation

Establish a unique business model through advanced collaboration between food and logistics businesses

Maximize highly diversified human capital

Build a management system with a strong and lean management platform

Expand a corporate brand that embodies Nichirei's identity, tailored to each country

Make efforts to reduce environmental impact throughout the supply chain Realize GX to boost competitiveness

Secure and procure sustainable resources

Establishing a business model that contributes to solving social issues

Create unique values to resolve social issues Establish a business model utilizing logistics big data

Strengthen R&D functions to create new foods/logistics technologies

Material Matters

(Materiality)

FY2036 Targets

FY2026 to FY2028

New Medium-term Business Plan

Compass × Growth 2027

Operating profit/Net sales

10%

Overseas sales ratio

40%

ROIC

10%

Operating profit CAGR

8% or higher

*Compared to FY2025 results

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‌Nichirei Group Integrated Report 2025

Message from the President

Results of Initiatives

9

(Data Section)

Based on the Nichirei Group long-

term management goal, we will persistently enhance corporate value by leveraging group synergies and expanding overseas business with an emphasis on speed.

Kenya Okushi

Nichirei Corporation Representative Director,

President & Chief Executive Officer

Our Advantages and Aims

Nichirei Group Integrated Report 2025

Message from the President

Results of Initiatives

10

(Data Section)

FY2025 (Actual)

Initial Plan

Status of Achievement

Six-Year Results and Medium-term Business Plan "Compass

focused on the themes of solving social issues through business operations and pursuing higher capital efficiency.

Compass Rose 2024:

Initial Plan and Status of Achievement

Rose 2024" in Review A s a result, capital efficiency improved in Japan and

sales grew and surpassed the plan overseas, which led

Six years have passed since I was appointed to the post

us to a record-high performance. As for "grow core

Net sales ¥702.1 billion ¥660.0 billion

of President, and this year will be my seventh year. In terms of the medium-term business plan, two plans have been completed: "WeWill 2021," launched at the time of my appointment as President in April 2019, and

businesses and improve low-profit businesses" of the priority measures, in our view, one of our major achievements was the successful price revisions and receipt of proceeds at reasonable rates, against rising

Overseas sales

Operating profit

¥165.8 billion ¥130.0 billion

38.3 billion 37.0 billion

"Compass Rose 2024," launched in April 2022. During these six turbulent years, we experienced the unprecedented environmental change, the COVID-19 pandemic, which forced us to navigate through considerable business hardships. Our revenue targets were achieved as planned, a CAGR of 5.2% in sales and 6.8% in operating profit, and an ROIC of 7.4% under Compass Rose 2024. Looking at these figures, as the top management, I recognize that we have achieved a steady outcome.

Over the past six years, the Nichirei Group has consistently worked on business structural reforms. In addition to enhancing profitability through domestic business reforms, we were also committed to accelerating overseas business operations. Bold capital expenditures were made for this purpose: ¥93.0 billion under WeWill 2021 and ¥96.2 billion under Compass Rose 2024, a total of ¥189.2 billion. We are confident that these upfront investments should lead to future earnings growth, without fail.

During the three years of Compass Rose 2024, we

costs. Price revisions often trigger an industry-wide price war, which often ends up in a futile fight over the share. However, being aware of our position as a front-runner in the fields of processed foods and temperature-controlled logistics, we took the lead as an industry advocate and had an exchange of views with customers tenaciously. It was the fruit of hard work by our employees who negotiated with each of our business partners on site.

Thanks to these efforts, we could make contributions to the earnings of the entire industry, which should be highly commended as a great outcome. In this sense, we emphasize giving detailed explanations about our profitability and capital efficiency to external parties. By region, in Japan, we concentrated resources for processed foods in strategic categories and promoted the operations of new value-added products. As to overseas sales expansion, we boosted the processed foods business in North America and the temperature-controlled logistics business in Europe. In Asia, the inclusion of certain affiliates as a consolidated subsidiary in Thailand and Malaysia also contributed to earnings

ROIC 7.4% 7% or higher

ROE 9.6% 10% or higher

growth. The overseas sales ratio increased to 23.6% in FY2025, but we are not necessarily satisfied in terms of the speed. In addition, misconduct by a former employee of the Chinese subsidiary of Nichirei Foods was found in FY2025. We made efforts to reinforce our management base, including the improvement of governance, but they were not adequate. Taking this seriously, we will take thorough preventive measures. Under the new medium-term business plan "Compass × Growth 2027" (hereinafter, the "New Medium-Term Plan"), launched in the wake of the foregoing, we intend to accelerate the speed of overseas business operations, improve profitability, as well as bolster our management base.

In terms of business portfolio, we successfully instilled the concept of capital efficiency in each division by

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Our Advantages and Aims

Nichirei Group Integrated Report 2025

Message from the President

Results of Initiatives

11

(Data Section)

introducing target ROIC for each business to be reflected in business strategy development, budget planning, monitoring, etc. When discussing future strategies with each division, we are now able to discuss not only earnings targets but also capital efficiency. This is a great achievement. In the marine products and meat and poultry products businesses, we have also worked on structural reforms based on ROIC management. However, efforts to maximize synergies in the integration of foods business will remain a continuous issue under the New Medium-Term Plan.

*Compared to FY2025 results

Making Efforts to Enhance Profitability and Improve Capital Efficiency in Order to Achieve Financial Targets in Ten Years from Now

―Setting New Long-Term Management Goal-

On December 1, 2025, the Nichirei Group will mark its 80th anniversary. With this milestone year as a starting point, we have formulated the new long-term management goal, "N-FIT (Nichirei Future Innovative

Tactics) 2035." We have worked to attain the long-term management goal "Toward 2030" since 2019 with an aim to continuously increase corporate value through a wide range of businesses supporting food and health. However, in light of changes in the business environment in Japan and overseas, we decide to set a new longterm management goal of "strengthening profitability and improving capital efficiency." With a strategic target of 2035, which is 10 years from now, the Nichirei Group, as a company that constantly supports good eating habits

and health of people across the globe, will aim to become one that is trusted by stakeholders from all over the world. The financial targets for 2035 are: 10% operating profit/ net sales; 10% ROIC; 40% overseas sales ratio; and 8%* or higher operating profit CAGR. No financial target is set for sales, then we will focus on improving profitability and capital efficiency to enhance the quality of our business activities.

It is also important to achieve the 2030 targets, as a

Mission and Vision

Management System

Social Value

Economic Value

N-FIT 2035

Compass × Growth 2027

Business growth

Capital efficiency

Profitability

Climate change

Supply chain

Diverse human resources

New value

Our Advantages and Aims

Nichirei Group Integrated Report 2025

Message from the President

Results of Initiatives

12

(Data Section)

milestone for achieving the 2035 financial targets. The economic environment, including geopolitical risks, is hard to predict even for 2030, but at least rising costs should continue for some time in different areas. Under these circumstances, the best-case scenario at the moment is that people's living standards will rise in Japan in a manner that is greater than the increase in costs, mainly due to improving real wages. This is my personal opinion, but we should establish a business structure by 2030, which can continue to generate a certain amount of cash company-wide, including overseas operations, even if the economy does not improve as expected

or we are unable to generate as much cash as we want in Japan. In the domestic market, headwinds are expected to intensify due to expected population decline, and

it is important to raise capital efficiency by improving productivity in the indirect sector. However, I also feel that there are plenty of opportunities to cover through technological innovation and so forth. In this sense, we would like to return some of the cash we earned from expanded overseas business to Japan, in an effort

to further improve labor productivity and create new businesses.

Strengthening Profitability and Improving Capital Efficiency Domestically and Globally

-Basic Strategy under New Medium-term Business Plan-

Aiming to achieve N-FIT 2035, we have launched a new Medium-term Business Plan called "Compass × Growth 2027." As with N-FIT 2035, the theme is "strengthening profitability and improving capital efficiency." We will work to build a management and business base that supports sustainable growth. Specifically, we have formulated to work on the following three Group Medium-term Business Strategies: "deepening areas of competitive advantages and leveraging Group synergies;" "overseas business expansion based on regional strategies;" and "promoting human capital management and developing global governance."

In Japan, we will continue to deepen competitive advantage areas further and implement strategies with a focus on synergies as the Nichirei Group. As a measure of deepening competitive advantage areas, we will first address the maximization of profits in strategic categories in the foods business, such as processed chicken and rice products. In particular, we will raise capacity utilization of the production that we invested in during the previous medium-term plan period to maximize the investment effect. We will also expand sales of health value products and other value-added products. In the temperature-controlled logistics business, we will expand our customer

base by enhancing the logistics platform for frozen foods, which is a growth area, as well as widening customer segment, to which we provide value as a retail business, to include midstream services. To leverage group synergies, our focus will be on pursuit of synergies within the foods business and between the foods business and the temperature-controlled logistics business. In the former case (within the foods business), we will integrate all functions, from procurement to sales including those overseas, and create synergies across the business. In the latter case (between the foods business and the temperature-controlled logistics business), we will pursue efficient logistics and efficient and stabilized delivery operations to gain more customers, by drawing on the features and number of the locations of food factories and refrigerated warehouses, which are the assets of both businesses. These assets are significant as developed by our forerunners over time, with high entry barriers. For the future, we are considering making capital expenditures in the Tokyo metropolitan area, Kansai region, and Kyushu region, in order to enhance synergies by strategically locating food factories and refrigerated warehouses in vicinity.

In overseas business, we will aim for business growth

in Europe, ASEAN, and North America, by utilizing both organic and inorganic strategies by region as well as by business. In the foods business, we will ramp up development capabilities in North America and production functions. In particular, we will combine our marketing

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Our Advantages and Aims

Nichirei Group Integrated Report 2025

Message from the President

Results of Initiatives

13

(Data Section)

capabilities in North America with product and equipment development capabilities in Japan to expand our lineup. In Thailand, we will straighten production functions in an effort to stabilize profitability. In the temperature-controlled logistics business, we aim to further expand our business base and enhance profitability in Europe. In ASEAN, we aim to steadily meet the growing needs for low-temperature logistics and build a cross-border transportation network similar to that in Europe.

Tangible and intangible assets that we have accumulated over the past 80 years will be a driver in strengthening profitability and improving capital

efficiency domestically and globally. Human resources are particularly important, and we will establish a structure that enables the Group human resources to deliver maximum performance. Firstly, for the expansion of overseas business, we will develop international human resources and clarify the compensation system. For example, employees who are transferred from Japan to other countries often face various problems depending on where they are transferred. We are working to resolve these issues that are unique to each region, ensure that employees and their families can lead normal lives in

any region, and establish a compensation system based on employee skills. We also will work to build a global governance system, including the promotion of local employees to executive positions. Another action is the renewal of competency assessment. The system itself has been in place for some time, but we have updated it to make it easier to operate and useful for promotions

and personnel transfers. As a company-wide project, we have begun switching the system.

From a human resources perspective, we would like to strengthen our efforts in digital technology and creating an organizational culture. The key to increasing productivity through technological innovation is digital technology initiatives, including AI technology.I have been keenly aware of this point since I became president, but we faced a lack of human resources to plan and formulate strategies partly because we have outsourced system updates and other activities. Currently, we are actively investing management capital in this area, bringing

in external personnel to plan our future information strategies. For sustainable corporate growth, we will also focus on building an organization in which each employee can think for themselves and come up with ideas and solutions. Giving top-down directions may be faster in the short term, but there is no continuity. In securing and developing human resources, a challenge is to link them with management strategies, but we

intend to create an organizational culture in which human resources are mobilized across departments, and diverse human resources, including mid-career hires, can thrive and express their ideas. In the future, we will also reform indirect departments and head office functions, as well as restructure our personnel system in connection with digitalization and DX strategies.

Customer relationship assets acquired through long years of honest business activities are also important. We continue to conduct stable business

operations by utilizing our extensive network of customers. In addition, manufacturing assets such as refrigerated warehouses and food factories that cover the entire country and intellectual assets such as knowledge and know-how that support highly efficient logistics are also important growth drivers. These assets do not work individually but rather work by being organically connected with each other. This is our strength and the reason why we continue to be a company of choice.

Financial Targets and Strategies

The New Medium-Term Plan sets out financial targets based on financial indicators related to growth, profitability, and efficiency. In terms of growth potential, we have set a sales CAGR of 4.4% and an overseas sales ratio of 30%. For profitability, we have set an operating profit CAGR of 13.5%, an operating profit/net sales of 7.0%, and ROIC of 8% or higher.

As I mentioned earlier, the key to achieving our sales target of ¥800 billion and operating profit target of ¥56 billion is to expand our overseas business and achieve a return on investment in our domestic business. We plan to increase the overseas sales ratio by 6.4 percentage points over three years, by accelerating global expansion. Domestic capital expenditures need to be reaped by factoring in the recent rise in prices of construction materials and raw materials, as well as rising labor costs. Given that costs should continue to rise, it is also

Our Advantages and Aims

Nichirei Group Integrated Report 2025

Message from the President

Results of Initiatives

14

(Data Section)

important to narrow down investments to projects with high growth potential. As for capital expenditures during the New Medium-Term Plan, we plan to invest ¥127 billion, which is more than that made under Compass Rose 2024, with operating cash flow of ¥170 billion to be accumulated over three years. However, the current investment environment is challenging. In addition to volatile exchange rate fluctuations, a rise in the prices of raw materials and energy is also seen globally. In Japan, risks such as a shortage of human resources and rising personnel costs are becoming apparent. Even in this environment, we will stick to our strategy of concentrating resources on high-quality investment projects with high recoverability and achieve high investment returns, by making thorough investment decisions that emphasize capital efficiency based on ROIC. In addition, shareholder returns of ¥36.5 billion over three years is projected, which is only the total amount of dividends, and the acquisition of treasury stock will be considered separately.

For inorganic growth strategy investments such as

M&A, we have set a new line of ¥30-50 billion. M&A deals are difficult to plan, but it is set as we are committed to allocating more resources than ever before for further overseas expansion. By making effective use of these investment lines, we will maintain and improve our growth potential.

Thoughts and Prospects for the Future

Going forward, we will establish a long-term competitive advantage by steadily implementing the measures we have newly set as our long-term management goal. We are now starting our efforts to become an indispensable existence in the world.

Initiatives to develop future management human resources are also in progress. I hope that the managers who pave the way for the Nichirei Group's future can conceive the vision for management and business and clearly articulate their ideas to get those around them involved. As president, I have come to realize that it is difficult but important for a manager to be capable of drawing a picture of what one wants to do in the future based on past achievements and experiences and conveying that in words. In addition, if a company is led by human resources who not only can put the strategies drawn up into action but also can build a workplace

that encourages people to work independently and autonomously in line with those strategies, it should be able to become a sustainable company.

As a company that supports the food industry, which is essential for people to live, there are still many things we can do and much we must challenge. The value created by food will continue to diversify in the future. I believe that we should also provide new value that goes beyond the framework of simply being a provider of food and provide

categorized food that individuals can choose according to their preferences and circumstances. When I look back on my own memories, food always comes to mind, for instance, where and what I ate with my parents, friends, or partners. We are working to convey such values through our business of manufacturing and delivering products.

If we achieve a 40% overseas sales ratio by 2035 and are recognized worldwide as a global company in both name and reality, this ratio should continue to rise

thereafter. However, even with such an overseas business-centered structure, we should not forget that we are a company born in Japan. We will continue to take pride in being a Japanese company that maintains a high-quality food culture and pays careful attention to food, and we hope to be a corporate group that contributes to the food of the world, with roots put down all over the globe.

We look forward to your continued support for Nichirei's efforts to resolve issues one by one toward our larger vision.

15

‌Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

15

(Data Section)

Editing Policy of This Report/Contents

Section 1

Our Advantages and Aims

Integrated Report 2025 was created as a tool that facilitates meaningful dialogue with stakeholders, including

Enhancement of Corporate Value

1. Mission and Vision

2. Milestones of Value Creation (Nichirei Group's History)

3. Refined Unique Competitive Advantages

6 Realization of Group Synergies

Point 2

8 Towards 2035

Point 2

(Long-term management goal)

Point 1

9 Message from the President

shareholders and investors, by clearly communicating both

Section 2

Enhancement of Corporate Value

financial and non-financial information along with our management strategies.

Profitability Improvement and Growth Expectations

Capital Cost Reduction

15 Editing Policy of This Report/Contents

16 Value Creation Process

17 Group Material Matters (Materiality)

19 Overview of Medium-term Business Plans

Point 2

20 Medium-term Business Plan Compass × Growth 2027

Section 3

Profitability Improvement and Growth Expectations

Point 1

We will explain our competitive advantages established by Nichirei Group, which will mark its 80th anniversary on December 1, 2025.

Point 2

In order to achieve the long-term management goal "N-FIT2035," we have set the new Medium-term

Business Plan "Compass × Growth 2027," which will start from FY2026.

22 Financial Strategy

26 Overseas Strategy

28 Intangible Assets

Point 3

28 Human Resources Strategy

37 Intellectual Capital

40 DX Strategy

42 Business Portfolio

44 Business Strategy: Processed Foods

45 Business Strategy:

Marine, Meat and Poultry Products

Point 2

46 Dialogue on the Integration of the Foods Business (Processed Foods × Marine, Meat and Poultry Products)

49 Business Strategy:

Temperature-controlled Logistics

Point 1

50 History of Our European Business

51 Business Strategy: Biosciences

52 Helping to Resolve Social Issues through Our Business

52 Evaluation of Social Impact of SULS

55 Amani-no-Megumi Beef

57 Antigen Test Kit

Point 3

Intangible assets, which are the source of growth,

Section 4

Capital Cost Reduction

are indispensable for the long-term enhancement of corporate value.

In this Report, we focus in particular

on human resources who will implement our strategies, and on strengthening corporate governance.

58 Promotion of Sustainability Management

59 KPIs for Group Material Matters (Materiality)

60 Climate Change

68 Providing Safe Products and Services (Quality Assurance)

70 Stakeholder Engagement

72 Message from Outside Directors

Point 3

75 Officer Career Summaries

Point 3

78 Corporate Governance

87 Internal Control/Compliance/Risk Management

How to use this Report

This Report provides navigation features that allow users to move between pages and access external sites.

Go to Table ( Pages XX-XX)

of Contents. Go to the relevant page.

XXXXXXXXXX

Go to the website.

Clicking a title in the index at the top of each page will take you to the corresponding page.

Section 5

Results of Initiatives (Data Section)

89 Financial Highlights

91 Non-Financial Highlights

92 Global Network

94 External Evaluation

95 Investor Information

96 Declaration of Authenticity/Company Information/Overview of Nichirei Communication

‌Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

16

(Data Section)

Value Creation Process

Group Material

Strengthening food

Realizing sustainable food

Securing and developing a

Matters (Materiality)

Creating new value in food and health

processing and production technology capabilities; enhancing logistics services

procurement and a circular economy

Climate change initiatives

diverse array of human resources

External Environment

Input

Note: Data as of March 31, 2025, with some exceptions

Stable procurement of sustainable raw materials

Enhanced food traceability

Higher expectations for frozen storage, supply and control functions for food

Rising demand for frozen foods

Rising demand for health conscious products

Promotion of personalized diets and medical care

Providing new products and services in response to labor shortages and legal regulations

Providing value through products and services that recycle resources

Financial Capital

Output

Processed Foods

Financial result

Outcomes

Co-creation with Stakeholders

Total assets: ¥499.2 billion

Equity ratio: 52.1%

Free cash flow (before dividends): ¥20.8 billion

Manufactured Capital

Production facilities:

20 in Japan

7 overseas

Refrigerated warehouse storage capacity:

Refined and advanced

capabilities in food processing, production technology and temperature-controlled logistics services

Continuing to create new value for the times with our

Improvement in capital efficiency

Strengthening of strategic categories such as rice products and processed chicken products

Temperature-controlled Logistics

Customers

Business Partners

Local Communities

Shareholders and Investors

Employees

Realize a Sustainable Society

Trade Organizations, NGOs, NPOs, and Related Initiatives

1.6 million tons in Japan

0.9 million tons overseas

Intellectual Capital

Production expertise

Technological strengths in cooking and processing

Logistics expertise Brand strength

Human Capital

Depletion of food and water resources due to climate change

Labor shortage

Disruption in passing down know-how

Disruption or difficulty in maintaining a sustainable supply chain

Increase in raw material procurement costs

Increase in environmental investment due to shift to renewable energy

Market changes spurred by changes in demographics

Stricter regulations on imports and exports in each country

Number of employees (consolidated):

16,626

Expert human resources

Average length of service:

(Men) 18.2 years

(Women) 15.9 years

Social and

capabilities

as a food and logistics pioneer

Comprehensive Group capabilities

based on our own nation-wide cold chain network and production bases

Financial result

Expansion of overseas business

Strengthening of one-stop services

Marine, Meat and Poultry Products

Financial result

Promotion of structural reform

Expansion of the handling of high-value-added, future-oriented materials

Biosciences

Stakeholder Engagement ( Pages 70-71)

FY2036 Targets

10%

10%

40%

* Compared to FY2025 results

8% or higher

Economic Value

Operating profit/ Net sales

ROIC

Overseas sales ratio

Operating profit CAGR

Social Value

Details/FY2031 Targets

Creation of new value

Reduction in CO2

Relationship Capital

Sales network Logistics network

Donations to social causes: ¥670 million

Natural Capital

Global procurement network for agricultural, meat, poultry and marine products:

Approximately 30 countries

Our Unique Competitive Advantages ( Pages 3-5)

Financial result

Improvement in profitability

Expansion of sales of molecular diagnostic reagents and testing equipment

Reduction in environmental impact

Sustainable procurement of raw materials and water resources

Reduction of human rights risks

emissions

Scope 1+2 -42%

Scope 3 -25%

Implementation rate of ESG due diligence: 100%

Sustainability Policy

Management Principles

17

‌Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

17

(Data Section)

Group Material Matters (Materiality)

Material Matters (Materiality)

In 2020, the Nichirei Group identified five material matters (materiality) and set a vision for each of them in order to achieve its previous long-term management goals for 2030. We are carrying on the materiality concept in our new long-term management goal "N-FIT 2035." In addition, the new medium-term business plan, "Compass × Growth 2027," sets goals for each business as well as group targets to integrate business and sustainability strategies, positioning this period as a phase for deepening our sustainability management toward 2035.

Process for Identifying Material Matters (Materiality)

Please refer to the Nichirei Group Integrated Report 2020 for details of the identification process of material matters.

Nichirei Group Integrated Report 2020

https://www.nichirei.co.jp/sites/default/files/inline-images/english/ir/integrated/pdf/nichirei_IntegratedReport2020_all.pdf

Since our business domain is food provision, we have a tremendous social responsibility, being involved, as we are, with many stakeholders

Identifying stakeholders

Identifying social issues

(risks and opportunities)

Evaluating social issue criticality

Mapping material matters

and impacting their lives and society at large. For this reason, we have identified stakeholders based on the level of their demands and the extent of our impact on society.

After identifying our stakeholders, we delineated social issues from future and global perspectives.

We then evaluated the importance of those social issues, based on the fact that proactive measures result in business growth, and reactive ones are focused on minimizing damage to corporate value.

We mapped material matters that would require proactive and reactive steps, and in November 2019 we held initial deliberations on the details of mapping during the Nichirei Group Strategy Committee meeting, at which we usually discuss overall management strategies.

Creating drafts

Dialogue with experts

Integration

and narrowing down

Finalizing the draft

We created separate drafts for those issues that would require a proactive or reactive approach.

In December 2019, outside experts evaluated the validity of the drafts under consideration and exchanged opinions with Company corporate officers, including the president.

Based on opinions received from experts, we integrated and narrowed down material matters as proactive or reactive.

In February 2020, at the second Group Strategy Committee meeting, after repeated deliberation on both the evaluation of validity by experts and opinions on distinctive Nichirei features, an agreement was reached, resulting in a draft containing five material matters.

Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

18

(Data Section)

Group Material Matters (Materiality)

Connection between Non-financial Measures and Corporate Value Enhancement

Nichirei believes that enhancing corporate value requires initiatives that improve profitability (ROIC, ROE), reduce capital costs (WACC), and promote growth expectations (PER). We view the execution of measures to address our material matters as contributing to the improvement of these three types of economic value, thereby enhancing corporate value. By continuing to promote non-financial measures that address our material matters, we will create both social and economic value, which will ultimately enhance corporate value.

Specific Initiatives

Expected Non-financial Value

• Strengthening R&D and marketing functions

• Developing and promoting products and services addressing health and the global environment

• Promoting innovation

• Enhancing processing and production technology

• Enhancing temperature-controlled logistics services

• Conducting Supplier ESG Survey and due diligence with suppliers

• Improving the ratio of marine products with MSC*1and ASC*2certifications

• Sustainable palm oil procurement

• Conservation of water resources and biodiversity

• Reduction of CO2emissions

• Improving the rate of conversion to natural refrigerants

• Initiatives to promote women's participation

• Upgrading the occupational health system and enhancement of health literacy education

• Securing and developing globally capable human resources

• DX and sustainability education, and development of next-generation management personnel

• Improving employee engagement

• Creation of new value

• Enhancement of brand value

• Sustainable procurement of raw materials and water resources

• Reduction of human rights risks

• Enhancement of brand value

  Primarily linked Linked

  Profitability Improvement (ROIC•ROE)

  Capital Cost Reduction (WACC)

  Financial Value Drivers

  Enhancement of Corporate Value

  • Reduction in environmental impact

  • Enhancement of brand value

  • Creation of new value

  • Improvement of performance

  • Enhancement of brand value

  • Securing human resources

  • Strengthening the management base

Growth Expectations (PER)

*1 MSC certification: Certification of sustainable natural marine products by MSC (Marine Stewardship Council)

*2 ASC certification: Certification of sustainable aquaculture products by ASC (Aquaculture Stewardship Council)

19

‌Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

Profitability Improvement and Growth Expectations

Capital Cost Reduction

Value Creation Process

Financial Strategy Overseas Strategy

Intangible Assets

Human Resources/ Intellectual Capital/DX

Business Strategy Sustainability

Governance

19

(Data Section)

Overview of Medium-term Business Plans

The Nichirei Group has created new value and achieved growth in Japan and overseas. By organizing the achievements and issues of each medium-term business plan, we are ready to take on the next challenges.

FY2019 (Results) Initial Plan

Status of A nt

chieveme

FY2022 (Results) Initial Plan

Status of A nt

chieveme

FY2025 (Results) Initial Plan

Status of A nt

chieveme

(Billions of yen) 700.0

Net sales (Left scale) Operating profit (Right scale)

662.2

680.1

702.1

(Billions of yen) 70.0

600.0

500.0

400.0

300.0

539.7

29.3

568.0

29.9

580.1

29.5

584.9

31.0

572.8

33.0

602.7

31.4

32.9

36.9

38.3

60.0

50.0

40.0

30.0

200.0 20.0

100.0 10.0

0

2017 2018 2019

2020 2021 2022

0

2023 2024 2025 (FY)

ROIC - - -

POWER UP 2018

Summary

1. Ensure sustainable earnings growth and raise capital efficiency.

2. Pursue continued expansion in scale for overseas business.

   - - -

   WeWill 2021

   1. Realize sustainable profit growth.

   2. Improve capital efficiency and increase shareholder returns.

   3. Create new value that supports good eating habits and

      6.9 7.5 7.4

      Compass Rose 2024

      1. Grow core businesses and improve low-profit businesses

      2. Conduct business portfolio management

      3. Create new value

      Priority Measures

3. Further enhance the Nichirei Group's capabilities for quality assurance.

4. Continue to strengthen corporate governance and other ESG-related efforts.

5. Focus more intently on utilizing diverse personnel.

health, helping to resolve social issues through our business.

1. Strengthen ESG response

Achievements

Processed Foods

Logistics

Improved profitability in Japan on expanded sales of mainstay products.

Expanded cargo pickups mainly in metropolitan areas and improved balance of transport income.

Processed Foods

Logistics

Increased sales of household-use products by capturing demand for eating at home.

Enhanced operating conditions by ensuring appropriate collection of fees, promoting business innovation, etc.

Price revisions and collection of appropriate fees Higher net sales in overseas business

Building a transportation and delivery infrastructure to address the logistics industry's 2024 problem

Review

Actual Figures

Net sales ¥580.1 billion ¥560.0 billion Operating profit ¥29.5 billion ¥23.6 billion ROE 11.7% 9% or higher

Net sales ¥602.7 billion ¥657.0 billion Operating profit ¥31.4 billion ¥35.0 billion ROE 11.3% 10% or higher

Net sales ¥702.1 billion ¥660.0 billion Overseas sales ¥165.8 billion ¥130.0 billion Operating profit ¥38.3 billion ¥37.0 billion ROIC 7.4% 7% or higher

ROE 9.6% 10% or higher

Issues

Further improvement in profit levels and swift response to changes in the external environment and rising costs

Improvement of low-profit businesses and capital efficiency

Improvement in profitability of overseas business

‌Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

Profitability Improvement and Growth Expectations

Capital Cost Reduction

Value Creation Process

Financial Strategy Overseas Strategy

Intangible Assets

Human Resources/ Intellectual Capital/DX

Business Strategy Sustainability

Governance

20

(Data Section)

Medium-term Business Plan: Compass × Growth 2027

Basic Policies

"Compass × Growth 2027" expresses the Nichirei Group's desire to achieve growth as an indispensable presence in society by enhancing social and economic value, which was addressed in the previous medium-term business plan "Compass Rose 2024" toward the realization of the new long-term management goal "N-FIT 2035."

In "strengthening profitability and improving capital efficiency," we will build management and business foundations that will support sustainable growth in order to achieve our longterm management goal "N-FIT 2035."

Financial and Non-financial Targets

(Billions of yen)

Group Medium-term Management Strategy

ー Strengthening Profitability and Improving Capital Efficiency ー

* EPS: The Company conducted a 2-for-1 stock split of common shares on April 1, 2025. Therefore, the amount is calculated assuming that the stock split took place at the beginning of the fiscal year ended March 2025.

Consolidated Net Sales and Operating Profit

800.0

750.0

700.0

702.1

5.5%

38.3

6.4%

45.0

6.7%

50.0

7.0%

56.0

1

Deepening areas of competitive advantages and leveraging Group synergies

(Billions of yen)

Net sales (Left scale)

Operating profit (Right scale) Operating profit/Net sales

(Billions of yen)

800.0

120.0

Processed chicken products and rice products/Logistics platform for frozen foods

Integration of foods business

We will establish a solid position in Japan with strategic categories such as processed chicken products and rice products in the processed foods business and logistic platforms for frozen foods in the temperature-controlled logistics business as our revenue drivers. We will also realize group synergies through the integration of foods business to ensure improved profitability.

600.0

400.0

200.0

0

FY2025

FY2026

Plan

FY2027

Target

FY2028

Target

90.0

60.0

30.0

0

Europe, ASEAN, and North America

We aim to achieve organic and inorganic business growth in Europe, ASEAN, and North America.

Securing and developing human resources/Employee engagement

Establishment of regional supervisory function

We will promote human capital management and build global governance as the foundation for sustainable growth.

Financial Targets by Segment

2

Overseas business expansion based on regional strategies

3

Promoting human capital management and developing global governance, etc.

(Billions of yen)

* The "Others" segment includes revenue growth from M&A, which is considered inorganic growth.

21

Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

Profitability Improvement and Growth Expectations

Capital Cost Reduction

Value Creation Process

Financial Strategy Overseas Strategy

Intangible Assets

Human Resources/ Intellectual Capital/DX

Business Strategy Sustainability

Governance

21

(Data Section)

Medium-term Business Plan: Compass × Growth 2027

Financial Strategy

Operating cash flow will be allocated to investments in core businesses for future growth and shareholder returns. The D/E ratio is targeted at 0.5x from the perspective of financial soundness and capital efficiency, while leveraging and making effective use of debt when the need for large-scale fundraising arises due to inorganic growth.

Cash in

Cash out

Capital investment for organic growth

• In Japan, continue to invest in growth to accelerate centripetal force in foods and temperature-controlled logistics.

• Overseas, make aggressive investment to increase profitability.

• Continue environmental investments that promote sustainable management.

Capital investment plan by investment category

Previous medium-term

business plan: three-year 26/3E

cumulative total

Three-year cumulative total

(Billions of yen)

Capital investment plan by area and segment

(Billions of yen)

Previous medium-term

business plan: three-year 26/3E

cumulative total

Three-year cumulative total

Japan

Overseas

Growth investment 38.7 25.8 65.8

Environmental investment 12.3 4.4 13.7

Others 0.0 0.1 0.2

Total

24.4

19.3

32.8

Note: Figures in parentheses indicate previous medium-term business plan.

Strategic investment for inorganic growth

• Aiming to accelerate global expansion, conduct M&A overseas with agility.

• In M&A, consider the certainty of maximizing revenue and the degree of affinity with existing businesses.

Shareholder Returns

We will pay a progressive dividend with a lower limit of DOE (consolidated dividend on equity) of 4.0%, and acquire treasury stock as a flexible means of shareholder return, taking into account capital efficiency and the market environment.

(Yen)

Ordinary dividend Special dividend

5

41

47

46

25/3 26/3E 27/3P 28/3P

* The Company conducted a 2-for-1 stock split of common shares on April 1, 2025. For comparison purposes, the annual dividend per share for FY25/3 is shown as converted after the stock split (actual annual dividend per share for FY25/3 is ¥92 (common dividend of ¥82 and special dividend of ¥10)).

‌Nichirei Group Integrated Report 2025

Our Advantages and Aims

Overseas Strategy

Intangible Assets

Human Resources/ Intellectual Capital/DX

Business Strategy

Results of Initiatives

Enhancement of Corporate Value

Value Creation Medium-term

Process Business Plan

Capital Cost Reduction

Sustainability

Governance

22

(Data Section)

Financial Strategy

We will increase corporate value by conducting management that is conscious of the cost of capital and stock price, and by further increasing the value of intangible assets.

1

Overview of Medium-term Business Plan "Compass Rose 2024"

Kenji Suzuki

Director, Senior Executive Officer, Chief Financial Officer, Executive General Manager of Corporate Management Headquarters, in charge of Accounting & Tax Division,

Finance Division, Public Relations & Investor Relations Division, Human Resources Development Division, Legal Department Division, Corporate Internal Audit Division, Quality Assurance Division, and Real Estate Division

Our previous medium-term business plan "Compass Rose 2024" (hereinafter, the previous medium-term plan), is considered to have largely achieved its profitability targets. Operating profit in FY2025 (the fiscal year ended March 31, 2025) reached a record high of ¥38.3 billion, an increase of ¥6.9 billion from FY2022, the final year of "WeWill 2021." Profit attributable to owners of parent increased from ¥23.4 billion to ¥24.7 billion, and profit per share (EPS) calculated after the stock split was ¥97.35, both exceeding the initial plan. Operating cash flow for the three years in the previous medium-term plan was ¥153.5 billion, an increase of ¥33.9 billion from FY2022. Ability to generate cash is steadily increasing due to initiatives such as price adjustments and appropriate collection of fees, as well as reduction of operating funds. Overseas sales were ¥165.8 billion, an increase of ¥68.2 billion from "WeWill 2021." The acquisition of a warehouse company in the United Kingdom and the construction of new refrigerated warehouses in the Netherlands and Poland contributed to significant growth in the temperature-controlled logistics business in Europe. We achieved the ROIC (return on invested income) target of at 7% or higher, which was introduced starting in

the previous medium-term plan. This is a result of the return of capital investment in strategic categories in the processed foods business and progress in structural reforms in the marine products business.

On the other hand, issues remained in terms of capital efficiency and growth potential. While net assets increased by ¥58 billion over the past three years, interest-bearing debt remained flat, resulting in a decline in ROE (return on equity) from 11.3% to 9.6%. Capital investment was ¥96.2 billion over three years, a significant shortfall from the initial plan of ¥120 billion. The main reason for this was that the planned expansion of new warehouses in Japan did not materialize, and the environmental investment also fell short of the initial plan of ¥29.2 billion. Based on these achievements and issues, the new medium-term business plan clarifies the policy of resource allocation and strives to create more value while balancing financial soundness and capital efficiency.

23

Nichirei Group Integrated Report 2025

Our Advantages and Aims

Overseas Strategy

Intangible Assets

Human Resources/ Intellectual Capital/DX

Business Strategy

Results of Initiatives

Enhancement of Corporate Value

Value Creation Medium-term

Process Business Plan

Capital Cost Reduction

Sustainability

Governance

23

(Data Section)

Financial Strategy

2

Long-term Management Goal "N-FIT 2035" and Medium-term Business Plan

"Compass × Growth 2027"

In the newly formulated long-term management goal, we set our basic policies of strengthening profitability and improving capital efficiency, and set numerical targets for 2035 of an operating profit/net sales of 10%, ROIC of 10%, and overseas sales ratio of 40%.

In "Compass x Growth 2027" (hereinafter, the new medium-term plan), we aim to further enhance our corporate value by placing the highest priority on leveraging group synergies, expanding overseas businesses, and establishing global governance. We have set ROIC of 8% or higher and ROE of 10% or higher as our key financial numerical targets, and will accelerate our efforts to achieve sustainable growth and earn the trust of capital markets. We are also keenly aware of market evaluation indicators such as price-to-book ratio (PBR) and price-to-earnings ratio (PER). By investing in intangible assets such as human capital and intellectual capital, and by continuing to focus on capital costs, we aim to achieve a PBR of 2.0 times or more. The operating profit target

*Simple ROIC= Operating profit after tax / Main capital employed (Operating funds + Non-current assets)

PBR and ROE

includes the impact of a change in accounting policy in line with global standards, such as a change in the depreciation method from the declining-balance method to the straight-line method and a review of the useful life. We will strengthenprofitability and improve capital efficiency as a company listed on the Prime Market by improving profit structure in our core businesses and instilling ROIC management.

(PBR: Times)

10% or higher

12

2.0

9.6%

1.7

10 8

6

1.0

4

2

0.0

0

3.0

PBR (Left scale)

ROE (Right scale)

ROE

（ROE：％

14

17/3

18/3

19/3

20/3

21/3

22/3

23/3 24/3 25/3 26/3E 27/3P 28/3P

*The figures are prior to the stock split at the ratio of 2 shares for 1 share of common stock on April 1, 2025.

Nichirei Group Integrated Report 2025

Our Advantages and Aims

Overseas Strategy

Intangible Assets

Human Resources/ Intellectual Capital/DX

Business Strategy

Results of Initiatives

Enhancement of Corporate Value

Value Creation Medium-term

Process Business Plan

Capital Cost Reduction

Sustainability

Governance

24

(Data Section)

Financial Strategy

3

Expansion of Overseas Business and Strategic Resource Allocation

Under the new medium-term plan, we will expand our overseas business based on regional strategies. Europe, ASEAN, and North America account for approximately 85% of the Group's overseas sales, and further organic growth is expected in processed foods and temperature-controlled logistics. We will strengthen resource allocation to these three areas. From the perspective of monitoring, we are looking into managing and disclosing financial indicators such as invested capital and ROIC, not only by business segment but also by regional segment.

Our target overseas sales ratio for FY2028 (the fiscal year ending March 31, 2028) is 30%, a significant increase from the current 23.6%, incorporating expected advancement due to M&As. The temperature-controlled logistics business in Europe has a history of expansion through M&A, and we have established a system to promote PMI (post-merger integration, an integration process following M&A) by function.

Strengthening our management base is an important issue for ensuring growth in overseas business. In FY2025, a Chinese subsidiary was involved in a misconduct.

Going forward, we will work as a Group to prevent recurrence of such cases and strengthen overseas governance.

FY2026 Net Sales Target by Segments and Regions (Unit: Billions of yen)

4

Cash Allocation and Shareholder Returns Policy

Cash generated from operating activities and asset securitization will be used for growth investments and shareholder returns. In the new medium-term plan, in addition to capital investment of ¥127 billion, we anticipate M&A of ¥30 billion to ¥50 billion, making the total amount of growth investment to be ¥160 billion to ¥180 billion. We assume debt financing for large-scale M&A projects, but considering the current debt-to-equity (DE) ratio and borrowing capacity, we assess that the impact on financial soundness is minimal.

Our basic policy for shareholder returns is to pay a progressive dividend with a dividend

Cash Flows

on equity (DOE) ratio of 4% as the lower limit, with an emphasis on stable and sustainable dividends. The total return ratio, including a stock buyback, was 56% during the previous medium-term plan period, achieving a level that meets investor expectations. We aim to enhance shareholder returns by continuously increasing dividends and flexibly conducting stock buybacks.

Please refer to the medium-term business plan "Compass × Growth 2027"

for the shareholder returns policy after the fiscal year ending March 2026. ( Pages 20-21)

on April 1, 2025.

Shareholder Returns *The figures below are prior to the stock split at the ratio of 2 shares for 1 share of common stock

(Billions of yen)

80.0

Operating cash flow

Financing cash flow

Free cash flow

0

-20.0

20.0

40.0

60.0

53.2

40.8

29.4 29.9

9.6

31.3

13.4

39.4

45.5

34.7

37.9

11.0

30.9

15.1

20.8

13.2

8.6

-21.9

-13.7

-14.2

-8.6

-16.8

Ordinary dividend (Yen)

Special dividend (Yen)

Commemorative dividend (Yen)

47.3

DOE (%) Payout ratio (%)

38.6

28.5

31.4

4.5

20.7

21.1

21.4

3.1

3.4

28.3

3.2

31.1

4.0

3.1

2.5

2.5

2.5

6

74

44

10

62.4

-40.0

17/3 18/3

22/3 23/3

-31.3

24/3

25/3

17/3 18/3 19/3 20/3 21/3 22/3 23/3

24/3

25/3

DOE target of 2.5% DOE 3.0% as a guideline DOE 4.0% as a guideline

25

Nichirei Group Integrated Report 2025

Our Advantages and Aims

Overseas Strategy

Intangible Assets

Human Resources/ Intellectual Capital/DX

Business Strategy

Results of Initiatives

Enhancement of Corporate Value

Value Creation Medium-term

Process Business Plan

Capital Cost Reduction

Sustainability

Governance

25

(Data Section)

Financial Strategy

5

Investment in Intangible Assets and Strengthening the Foundation for Value Creation

Considering intangible assets as a source of corporate value expansion, we will promote initiatives to increase the value of intangible assets along with investments in tangible assets. Interest in intellectual capital and human capital, which form intangible assets, is growing year by year and is the key to supporting the medium- to long-term growth of companies. Among them, the appropriate allocation of management resources to human capital is particularly emphasized.

Investment in human resources in our domestic operations, including expenditures for education and training and mid-career hiring, is currently around ¥1.1 billion, with a target of increasing to ¥1.6 billion in three years. We view this as a strategic investment to foster future competitiveness. Strengthening the human resource base that supports global

expansion is also an extremely important issue. As the overseas sales ratio increases, there is an urgent need to develop human resources to take on management responsibilities at overseas locations. We plan to increase the number of staff transferred overseas from the holding company from the current eight to 15 by FY2028 (the fiscal year ending March 31, 2028) through systematic human resources development and personnel deployment.

Another important issue is improving the engagement of employees who are responsible for value creation. We will enhance employee engagement and strengthen the foundation for future expansion of corporate value by providing appropriate feedback to employees, such as the introduction of global job grading and increasing opportunities for direct dialogue with management.

6

Toward Constructive Dialogue with Shareholders and Investors

We will continue to strengthen our IR activities. In particular we have been promoting to create opportunities for dialogue with our management and enhancing information disclosure. We reflect the insights gained through discussions with investors in our management.

In the previous medium-term plan, we disclosed trends in ROIC (return on invested capital, turnover of assets) by segment. We have been setting up opportunities for dialogue between Outside Directors and capital markets to ensure a better grasp of the state of our governance. We also have been organizing facility tours to food factories and refrigerated warehouses and holding business briefings for major segments to make our business thoroughly understood.

Strengthening relationships with overseas investors is also an important issue. We have developed an investor targeting list to increase opportunities for strategic dialogue. In FY2025 (the fiscal year ended March 31, 2025), we held 80 meetings with overseas institutional investors, 11 meetings increased from the previous year. We aim to increase to 100 meetings in FY2026.

In our IR activities, we recognize that we further need to communicate a clear overseas growth story and explain the link between intangible assets, such as human capital and intellectual capital, and corporate value enhancement. We will continue to strive to ensure that Nichirei's corporate value is appropriately evaluated in the market through constructive dialogue with domestic and overseas investors and feedback to management.

Engage in Dialogue and Disclose Information

Dialogue topics

New medium-term business plan, medium- to long-term strategies, capital policy and shareholder returns, business portfolio management, capital expenditures, strengthening profitability, and overseas growth

Reflection in management strategies and measures (Details incorporated based on dialogue)

Expanded disclosure in financial results briefing materials

(Breakdown of sales growth by unit price and volume in the processed foods business, net sales by function in the temperature-controlled logistics business in Europe, etc.)

‌Nichirei Group Integrated Report 2025

Our Advantages and Aims

Results of Initiatives

26

(Data Section)

Overseas Strategy

Foundation to support overseas business expansion

Resource allocation ( Pages 22-25) Globally capable human resources ( Page 31) Global governance ( Page 86)

Expanding our overseas business is the core of the Company's growth strategy. Under the new medium-term business plan "Compass x Growth 2027," we will implement growth strategies by region and business. We aim to increase our overseas sales ratio from 23.6% to 30%, or approximately 1.5 times in terms of the amount from the end of the previous fiscal year.

Regional Business Strategies

Net Sales and Operating Profit by Region

Europe

North America

(Billions of yen) Left scale:

240.0

North America

Europe Southeast Asia East Asia Others

Right scale:

Overseas operating profit (Billions of yen)

24.0

211.0

120.0

169.5

13.2

180.0

193.4

3.1

14.7

3.9

14.3

18.0

155.4

11.3

2.9

3.0

60.8

63.7

42.3

104.2

3.5 7.3

100.4

7.7

2.9

114.2

10.5

35.1

53.9

12.0

47.1

2.5

81.3

74.9

35.3

4.4

64.3

60.0

59.5

10.7

6.0

42.1

10.3

8.6

8.9

0

38.9

0

15.8

33.8 5.9

17.5

5.6

47.8

23.5

34.5

35.2

39.8

Foods business

Temperature-controlled logistics business

Expand business into regions where synergies with the temperature-controlled business can be expected

Further expand one-stop services at major ports and increase earning capacity by strengthening the base for the storage, transport and delivery business

Foods business

Strengthen the foundation for development and production functions

Expand sales channels for marine products through foods business integration

ASEAN

Foods business Stabilize earnings by putting the production function in place

Temperature- Expand one-stop services for storage, transport and

controlled

logistics business delivery, and establish cross-border transports for

future business growth

20/3

21/3

22/3 23/3 24/3

25/3

26/3E

*Figures have been restated to reflect the change in regional classification.

*Figures are accumulated for each area excluding Japan and interregional eliminations, etc.

Temperature-controlled logistics business

ASEAN Building a Cross-border Network

Nichirei Logistics Group aims to differentiate itself in ASEAN by obtaining halal certification* and conducting freezing and thawing services, accelerate one-stop services combining storage and transportation within each country, and build a cross-border network within ASEAN.

When viewed by country, in Thailand, a new facility started operation in northern Bangkok in March 2025 to store chicken, beverages and ingredients and products from dairy products manufacturers, and to capture demand for transportation by taking advantage of its location near the capital Bangkok.

In Malaysia, in July 2025, an affiliated company with strong transportation capabilities became our consolidated subsidiary to promote the provision of one-stop services combining

with our existing storage functions. In Vietnam, a new warehouse built in 2024 is fully operational. In response to the country's thriving three-country business of processing foodstuffs imported from North America and other countries and exporting them to third countries, we will strengthen the storage and transportation business of raw materials for production facilities and processed products for third countries.

Thailand

Vietnam

Navanakorn Logistics Center, Thailand (Operation started in March 2025)

Malaysia

We will increase our presence in ASEAN, where the importance of building a cold chain network is increasing, with an eye to non-continuous growth through the consideration of new M&As and future expansion into ASEAN countries where we have yet to enter.

Click here for European Business ( Page 50)

*A system to prove that a product or service does not contain anything prohibited in Islamic countries. Certification standards vary from country to country.

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Nichirei Group Integrated Report 2025

Overseas Strategy

Our Advantages and Aims

Results of Initiatives

27

(Data Section)

Foods business

North America Asian Food Business with Competitive Advantage to Support Robust Growth

In North America, there is growing awareness of Asian culture due to the increasing Asian population. In 2012, the Company acquired InnovAsian Cuisine Enterprises Inc., which plans and sells frozen foods in the United States. Rather than selling Japanese foods such as yakitori and tempura, we have expanded customer support and accelerated business growth by selling Asian foods, as imagined by the targeted local people, with the strategy to sell products using names and flavors familiar to them. By accurately grasping market needs, we increased sales from about ¥4.3 billion before the acquisition to about ¥13 billion in FY2019 and about ¥37.3 billion in FY2025.

We believe that this strategy is supported by the Company's marketing and sales capabilities as well as organizational strength and collaboration with Japan.

with the trends of the times. Digital marketing is also becoming more important because of the increase in e-commerce sales at our clients. We are committed to working on details on a daily basis, such as video advertisements to promote brand awareness and

examination of product descriptions to encourage buying decisions. In addition, an approximate sales forecast is made through sales promotion analysis, which is reflected in the product ordering plan.

Sales Capabilities and Organizational Strength

In order to expand market share in the U.S., it is important to build a network in the industry. Our local management members, who are well-versed in customers, distribution, and business practices, lead the sales team and each division to earn the trust of the industry and consumers

In particular, in the field of rice products, we are making use of the knowledge and know-how we have cultivated in Japan to promote initiatives to improve productivity, such as the introduction of production technologies and process improvements, supported by Japanese staff posted overseas on site.

(%) 100

Became a subsidiary

in July 2022

75.3

91.8

50

0

Yield Rate (Period Average) at Nichirei Sacramento Foods, Our Production Base for Rice Products

Marketing

We are working to expand brand recognition while maximizing cost-effectiveness by implementing marketing

and to enhance the brand value. Through these efforts, we have been gradually increasing the range of the Company's products handled and expanding their

Jan to Jul 2022

Aug to Dec 2022

2023 2024

and advertising methods and detailed analysis and improvement in accordance with the changing times and markets. For example, in 2012 at the time of the acquisition, the mainstream of advertising was vouchers in newspaper inserts, but now it has changed to SNS such as YouTube, and the Company conducts marketing by catching up

Rice products Video advertising

introduction.

Collaboration with Japan

It is our strength that our core products, such as rice products and processed chicken products, are the same in the businesses of Japan and the Asian Foods Business.

President Takenaga of Nichirei Foods Inc. and CEO Joe of InnovAsian Cuisine Enterprises Inc. address industry stakeholders and business partners at the 25th Anniversary Ceremony of InnovAsian Cuisine.

Toward Further Growth

We believe that there is still room for expansion in

the Asian food market, and that increasing production capacity will be critical to reap the benefits. We have our own production function for rice products, one of our main products. We are also considering having our own production function for processed chicken products, which are another main product. By combining our marketing and sales capabilities, as well as collaboration with Japan, as described above, we can demonstrate

a competitive advantage that cannot be easily imitated by competitors, and we can expect significant business expansion. Specifically, we will utilize our marketing expertise cultivated over many years to raise awareness among new customer segments and utilize our production technologies developed in Japan to differentiate ourselves from competitors in terms of both taste and productivity. In addition, we believe that collaboration with Japan will contribute to improving production management and strengthening development capabilities.

‌Nichirei Group Integrated Report 2025

Intangible Assets

Our Advantages and Aims

Results of Initiatives

28

(Data Section)

Human Resources Strategy

We aim to swiftly delve into issues through the reorganization of the Human Resources Division and improve diversity and reform the organization through dialogues

Promote Diversity throughout the Group

In FY2025, with the aim of accelerating the planning and implementation of human resource initiatives, the holding company's Human Resources Division was reorganized into three divisions: Diversity Promotion Division, Human Resources Development Division, and Human Resources Planning Division. In the beginning, there were some points where coordination was not sufficient, but as cooperation between the divisions has progressed, the accuracy and speed of implementing measures have improved. I feel that the effects of the reorganization are starting to show. In order to achieve our long-term management goal "N-FIT 2035" and the current medium-term business plan, we need to promote globalization and perform group synergies. We can only proceed with the plan with the active participation of our employees. We will further strengthen cooperation among the human resources divisions and pursue reforms with a forward-looking perspective. In addition, we believe it is necessary to quantitatively grasp the link between these activities and financial indicators going forward, and will proceed with analysis based on employee engagement survey.

We believe that promoting diversity is one of the key measures in our human resources strategy. In this rapidly changing environment, in order to respond to the needs of customers and consumers, in addition

to developing individual capabilities, it is necessary for each individual to freely express opinions and for organizations to respect such opinions, to turn them into organizational capabilities. To this end, strengthening management capabilities is essential. Also, from the perspective of risk management, we believe that the diversity of decision-making platforms is becoming increasingly important.

The promotion of diversity tends to be linked to the elimination of gender disparities, and in fact the Company has been focusing on the promotion of women's empowerment. However, as I mentioned earlier, we regard diversity as an essential part of corporate culture reform to achieve our management goals, and will promote diversity from various angles.

Conducting Employee Engagement Survey and Identifying Issues

Since 2023, we have conducted an annual employee engagement survey of all Group companies. It makes the relationship of employees' awareness, work satisfaction and the organization visible, and is used in the PDCA cycle of organizational development. The results of the second survey showed improvements in many categories compared to the first survey, but we found there are issues in leadership, business promotion structure, and performance management.

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Nichirei Group Integrated Report 2025

Human Resources Strategy

Our Advantages and Aims

Results of Initiatives

29

(Data Section)

For example, with regard to performance management*, we have heard that the connection of goals is not well established in the process of integrating organizational goals into individual goals, leading to insufficient evaluation and feedback of work performance. Surveys give us scores, but we do not only follow numerical results. What we are going to achieve is to listen to the voices of the workplace, understand the essential issues, and run the PDCA cycle to solve them, so that both the Company and employees can grow.

Foster a Culture of Dialogue

There are a number of tools, such as the employee engagement survey, that can help us understand the state of employees. It is essential to use them effectively to solve human resources issues. On the

other hand, as the sense of values diversifies, this is not enough to obtain honest feedback. I believe it is

important to create opportunities for a face-to-face dialogue as much as possible. For example, I have been engaging in dialogue with women candidates for management positions in the Group. Through these discussions, I have been able to learn that they are concerned about their own management skills and that they have a strong desire to be listened to by their superiors. This led to the introduction of a training program and a mentor system. In addition, when we interviewed employees in their 40s about their career-related concerns, we were surprised to find that, in addition to problems in balancing career path formation and child-rearing, they also worry about nursing care for parents. In order to understand the real needs of the workplaces, we recognize the renewed importance of dialogue and are actively promoting one-on-one meetings at each group company. At various meetings within the Company we are increasingly having opportunities to discuss how to create an organizational

culture that encourages dialogue, and are experiencing more occasions where we can feel the culture taking root. In addition to these efforts, going forward, we intend to take on the challenge of further instilling

a culture of dialogue throughout the Group, for example, by producing a dialogue guidebook.

We strive to make a culture of dialogue takes root for employees with diverse values to express and implement new ways of thinking and ideas without hesitation. We will also promote fostering leaders and developing an environment that encourage challenges centered on such a culture.

*Performance management: A series of activities focused on maximizing individual work performance while supporting career development