Nissui : Financial Statements (May 14, 2025) Supplemental Documents

Supplemental Documents for the FY2024

14thMay 2025 Nissui Corporation

© Nissui All Rights Reserved.

Overview of the FY2024

2

Overview of the FY2024

Sales and profits at each stage reached record highs, and net profit is the highest for four

consecutive years. ROIC also improved to 6.1%. The year-end dividend was 16 yen, an increase

for the sixth consecutive year (28 yen per year).

＜Profit attributable to owners of parent・ROIC・ROE＞

実績 実績 実績 実績 実績

2020年度 2021年度 2022年度 2023年度 2024年度

2020 2021 2022 2023 2024

年度 年度 年度 年度 年度

FY2020 FY2021 FY2022 FY2023 FY2024

実績

2020年度

2021年度

2022年度

2023年度

2024年度

(Unit: 100 million JPY)

12

9.6%

10.4%

10.2%

9.6%

10

8.9%

8

5.7%

6

5.2%

6.1%

4.1%

4

2

ROIC(%)

ROE(%)

0

FY2020

FY2021

FY2022

FY2023

FY2024

5.3%

Overview of the FY2024 by Segment

Sales of Marine Products and Food Products Business increased due to strong sales of food and

chilled foods and exchange rate effects, but profits decreased in the Marine Products Business.

＜Impact of Exchange Rates on Net Sales＞

(Unit: 100 million JPY)

Total: +Approx. 300 Marine products: +Approx. 150 Food products: +Approx. 150

(39)

296

Marine Products

Fishery & Aquaculture (Except for South American Aquaculture)

Including the

adjustment

of unrealized profits

Marine Products

South American

Aquaculture

Including the adjustment

of unrealized profits

Marine Products

Processing & Trading

Food Products Fine Chemicals

11 9

General Distribution

13

Common Costs

(Including consolidation adjustments)

9

(Unit: 100 million JPY)

Factors for Changes in Operating Profit (Y-on-Y)By international marine and food products, and logistics businesses, we cover majordomestic struggling businesses such as marine and food products.

317

14 4

▲39

Outside Japan 15

Outside Japan 23

Japan (11) Japan (12)

Consolidated Balance Sheet (Y-on-Y)Total assets increased due to the expansion of workingcapital and growth investments in Europe and North America.

(Unit: 100 million JPY)

Consolidated Cash-Flow Statement (Y-on-Y)Despite the increase in tax payments, the FCF remained at 10 billion yen.

＜Recipe1（FY2022－FY2024）＞

(Unit: 100 million JPY)

1,000

Net Sales

(Quarterly)

Operating Profit

FY2023 FY2024

FY2023

FY2024

60 (Quarterly)

(Unit: 100 million JPY)

800 40

600 20

400

1Q 2Q 3Q 4Q

0

1Q 2Q 3Q 4Q

Marine Products Business Net Sales & Operating Profit (Y-on-Y)

Sales increased due to the impact of exchange rates and strong trading in Japan and overseas. There were signs of recovery, such as South American aquaculture. However, during the year,

profits declined due to difficulties in domestic aquaculture and North American processing.

Marine Products Business Net Sales & Operating Profit (Y-on-Y)

The fishery segment struggled due to reduced catches caused by rough seas. In aquaculture, rising sea temperatures, increased feed costs, and sluggish tuna market prices led to further challenges. While the European fresh fish processing company contributed, declining surimi and fillet prices in North American

processing resulted in the same level as in FY2023.

120

Operating Profit

(Bar Chart)

（Unit: 100 million JPY）

3,619

Net Sales

(Line Chart)

4,000

1,400

（Unit: JPY/kg）

＜Domestic market price of salmon/trout calculated based on Trade Statistics of Japan, Ministry of Finance＞

90 3,265                      

3,000

60

30

217

228

846 817

* Italic figures at the bottom of the graph are total operating income figures by function.

2,000

1,000

1,200

1,000

800

0 0

600

(30)

6 (3) 41 31 53 57

FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024

(1,000)

400

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3

9

Fishery

Aquaculture

Processing/ Trading

Consolidated Adjustment

FY2023 FY2024

40

T

2

(2

(40)

（Unit: 100 million JPY）

South American Salmon Aquaculture

The assessment of the fish in stock is positive(+26) as selling prices showed a recovery trend,

combined with the return to the beginning balance.

6

(resident fish) in the stock

※2 Adjust unrealized profits in inventory

0

28

0

26

0

6

21

(5)

0)

(28)

FY2023

※1 Assumed profit of pre-shipment fish

FY2024

9.0

8.0

＜Chile Trout HG Market Price＞

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3

2023 2024 2025

(Unit： USD/kg)

＜Breakdown of the Assessment＞

7.0

6.0

(HG: Fish that its head and guts removed) (Source: InfoTrade)

1,400

Net Sales

(Quarterly)

FY2023 FY2024

100

Operating Profit

(Quarterly)

(Unit: 100 million JPY)

FY2023 FY2024

1,200 80

1,000 60

800 40

600 20

400

1Q 2Q 3Q 4Q

0

1Q 2Q 3Q 4Q

Food Products Business Net Sales & Operating Profit (Y-on-Y)

Despite the recent rise in raw material prices, sales and profits increased due to strong

sales both in Japan and overseas.

Food Products Business Net Sales & Operating Profit (Y-on-Y)

International profit increased due to continued benefits from lower raw material costs. Domestically, while surimi provided some advantages, rice price hike, yen depreciation, and rising logistics costs led to a decline in profit. The chilled food segment saw profit growth driven by successful initiatives in

the convenience store sector.

280

4,200

3,851

3,972

（Unit: 100 million JPY）

240

3,600

Operating Profit Net Sales

(Bar Chart) (Line Chart)

200

3,000

160

Others Europe

North America

Japan

2,400

120 1,800

80

1,105

943

* Italic figures at the bottom of the graph are total operating income figures by function.

1,200

40

600

0

0

246 241 32

(40)

FY2023 FY2024 FY2023

48

FY2024

(600)

FY2023

FY2024

Processing Chilled Consolidated Adjustment

500

400

300

200

100

（Unit: JPY/kg）      

Net Sales

FY2023

FY2024

60 (Quarterly)

Operating Profit

(Quarterly)

FY2023 FY2024

8

(Unit: 100 million JPY)

6

40

4

2

20

0

0 (2)

Fine Chemicals Business Net Sales & Operating Profit (Y-on-Y)Sales of pharmaceutical raw materials to the domestic market increased, andexports to Europe have started, resulting in increased sales and profits.

Net Sales

FY2023 FY2024

45 (Quarterly)

Operating Profit

FY2023

FY2024

12 (Quarterly)

(Unit: 100 million JPY)

40 8

35 4

30 0

General Distribution Net Sales & Operating Profit (Y-on-Y)

Profit increased due to price revisions and the impact of the new logistics center, which

commenced operations in January 2024.

Plan for the FY2025

15

Plan for the FY2025

Although the business environment surrounding the Trump tariffs is unclear, we plan to increase operating profit by 8.6%. However, tax expenses will increase due to a decrease in FY2024 tax expenses by recording deferred tax assets. Net income is expected to be

almost flat. The dividend is expected to be 28 yen, the same as in FY2024.

Shareholder Returns for the FY2025Our policy regarding shareholder returns is to “total return ratio of 40% or more

over 3 years while maintaining stable dividends.”

In addition to dividends, we will conduct a share repurchase via a tender offer for the first time to enhance shareholder returns and improve capital efficiency. We aim for a total return ratio of approx.68%

Year-End

Interim Dividends

(Unit: JPY)

24.0

Year-End

14.0

18.0

14.0

16.0

Plan

10.0

Interim

12.0

14.0

8.0

10.0

28.0 28.0

Total

FY2022 FY2023 FY2024 FY2025

Plan

return ratio

26.4%

31.3% 34.3% Approx.

68.0%

Plan for the FY2025 by Segment

Although sales in the fisheries business declined due to a decrease in vessels in the South

American fishery and a decline in fish oil and meal in domestic trading, sales in the food and

fine chemicals business increased.

Factors for Changes in Operating Profit (Y-on-Y)

We will improve the aquaculture business, reduce the deficit in the South American fishery and North American processing, and expand the Fine Chemicals Business. However, due to Trump's tariff policy, the outlook for the North American marine and food products business is uncertain.

Marine Products

Fishery & Aquaculture (Except for South American Aquaculture)

Including the

adjustment

Marine Products

South American

Aquaculture

Including the adjustment

Marine Products

Processing & Trading

Food Products Fine Chemicals Common Costs

(Including consolidation

adjustments)

(Unit: 100 million JPY)

of unrealized profits

21

of unrealized profits

20 5 345

317

(6)

Outside

(11) (2)

▲6

▲11

▲2

Japan 11 Outside

Japan 9

Japan (12)

Japan 0

FY2024

Actual

International fisheries incorporate the cost of laying up vessels associated with the sale of fishing vessels.

Aquaculture profits are expected to increase due to reducing losses by increasing the added value of Japanese Amberjack, increasing the production ratio of short-cycle farming of bluefin tuna, and consolidating fishing grounds.

In the first half of the year, the impact of the deterioration in the survival rate in the FY2024 will remain, but aquaculture performance will improve in

the second half.

In North American Processing, we improved profitability by optimizing products by strengthening our collaboration with fishing vessels.

Domestic trading plans to recover the profitability of salmon and trout, Japanese Amberjack, etc., due to high added value and stabilization of market conditions.

In North America, the rise in the price of raw materials such as white-meat fish and shrimp due to tariff policies is factored in. In Japan, the cost increases are to be absorbed by the price hike. Chilled sales continue to be strong.

In addition to expanding domestic sales of pharmaceutical raw materials and exports to Europe, the company expects to reduce costs by Japanese anchovy oil use.

FY2025

Plan

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＜Investment breakdown＞

(Unit: 100 million JPY)

＜FY2025 Cash Flow Plan＞

(Unit: 100 million JPY

)

Others, 0 Common

Marine

General

Distribution,

54

Fine

Chemicals, 23

Costs,

R&D Fishery,

18 27

Aquaculture,

45

Products,

130

FY2025 Processing/

Investment Trading,

Plan 57

Approx. 530

(Completion basis)Japan,

89

Food Products, 302

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Outside Japan,

213

Plant Investment:

North America... 150

Europe... 30 20

FY2025 Investment Plan and Cash Flow

Focusing on investments to increase production capacity in international food businesses, we

are also investing in businesses based on access to resources.

120

                                                         (Unit: 100 million JPY)  

4,000

Operating Profit

(Bar Chart)

3,619 3,609

Net Sales

(Line Chart)

228

817

194

90 3,000

60 2,000

30 1,000

0 0

※The italic figures in the lower part of this chart show the accumulation of the bar (operating profit)

(30)

(3) 1 31 48 57 77

FY2024 FY2025 FY2024 FY2025 FY2024 FY2025 FY2024 FY2025

Plan Plan Plan Plan

Fishery Aquaculture Processing/ Consolidated

Trading Adjustment

(1,000)

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Initiatives: Marine Products Business

We plan to increase profits significantly by reducing losses in North American processing and

South American fisheries, and improving domestic aquaculture.

Initiatives: Marine Products Business （Expansion of Aquaculture Business

and Stabilization of Earnings）

In addition to further expanding the aquaculture business, we will build a system that can

generate stable profits in response to changes in the external environment.

Reduce risk by increasing juvenile production

Stable production by responding to changes in the

environment

ー Productivity improvement by strengthening seedlings by promoting growth, making them resistant to high temperatures, and reducing the risk of fish diseases when they become adults.

• We will expand production by increasing seed farms and adding freshwater farms.

• We will also improve aquaculture results, such as enhancing seedling quality by reducing overcrowding.

  ー We will build an epidemic prevention system based on vaccine development and fishery epidemiology, and reduce the use of antimicrobials.

  ー Avoid the risk of death through appropriate fishing ground management.

  ー By switching to large cages and floating cages in offshore fishing grounds and developing a next-generation feeding system (underwater feeding), we will strengthen our response to high water temperatures and reduce environmental impact such as CO₂.

  Counting system using AI image analysis

  ー By automating feeding and breeding management through advanced technology, we aim to reduce occupational accidents and costs.

  Initiatives: Marine Products Business (Turnaround of South American Fisheries

  and North American Processing)

  Promote business reform with a focus on reviewing the profit structure.
  （South American Fisheries） Review of the operating system

  ー Reduce the number of vessels by one vessel and

  operate efficiently

• By reducing surimi production and increasing fillet production, we will improve the value of fish.

• In FY2025, there will be a cost until the sale is completed. We expect to return to profitability from FY2026.

(North American Processing) Maximize the value of fish

ー Improved profitability by increasing the ratio of fillet production

• Increase the production ratio of fillet 5%, whose price is stable at a high price compared to surimi.

  ー Strengthening Initiatives with Fishing Vessels.

• An efficient raw material procurement system linked to the processing line realizes procurement at the right time. In addition to stabilizing the quality of Alaska pollock raw materials and improving the quality of production items, efficient factory operation and staffing can also be expected.

280

240

200

160

120

80

Operating Profit

(Bar Chart)

Net Sales

(Line Chart)

4,200

Initiatives: Food Products Business

While there are concerns about the impact of Trump's tariffs on raw material

procurement, we will factor in the continued strong performance of chilled products.

3,972

4,112

Others Europe

North America

Japan

1,105

1,185

※The italic figures in the lower part of this chart show the accumulation of the bar (operating profit)

(Unit: 100 million JPY)

3,600

3,000

2,400

1,800

1,200

40 600

0

(40)

241 226 48 51

0

(600)

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FY2024 FY2025

Plan

Processing

FY2024 FY2025

Plan

Chilled

FY2024 FY2025

Plan

Consolidated

Adjustment 24

Initiatives: Food Products Business （International： Incorporating initiatives

to improve ROIC into our business)

Despite the risk of Trump tariffs, we will reduce the impact by diversifying raw material

procurement and expanding areas and categories.

(Europe and North America) Increasing production capacity

ーIn Europe, the company will strengthen its profitability by responding to demand through automation and expansion of production capacity, while in North America, it will improve the in-house production rate and improve logistics efficiency by building new plants. (Scheduled to start operations in the second half of 2025)

Expansion into Spain and Italy and improvement of presence in the chilled sales floor

ーExpand sales to Mediterranean countries such as Spain and Italy, where mass retailers have fresh fish sections.

(North America) Expansion of product categories and sales channels

ーIn addition to e-commerce, we will diversify our sales channels, including membership-based stores and discount stores.

ーStrengthen chilled fried seafood section and adjacent tapas.

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Frozen white-meat fish fry for

home use 25

Initiatives: Food Products Business （Japan)

We absorbed cost increases in rice and other products through price revisions and item

management to improve profitability.

Improving profitability through strategic price revisions and implementing revenue and expenditure management on an item-by-item basis

・We will continue to revise prices and reduce unprofitable items to improve profitability.

・From March to April 2025, we will implement a price revision of 3% to 30% for household and commercial

products. The effect of the revision of 6 billion yen is factored in.

Development of differentiated products that meet consumer needs, such as convenience, instant, and health

・Develop superior products that combine proprietary technologies and know-how.

Strengthening the chilled business: Maximizing the effects of integration by strengthening product development, improving productivity

・Strengthen product development: cup side dishes, rice bowls, etc. We will focus on product development for which there is a need, utilize new manufacturing methods, and expand existing categories to improve the top line.

Frozen side dishes that can be cooked in the microwave quickly and easily

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One-plate frozen lunch box that can be easily eaten in the microwave

・Productivity improvement: Strengthen profitability by reducing logistics costs through joint delivery and improving productivity by standardizing operations through system introduction and automation.

26

Initiatives: Fine Chemicals Business

As well as expanding domestic sales of pharmaceutical raw materials and exports to Europe, we will increase overseas sales of food products derived from the high-level processing of functional raw

materials. In addition, we will enhance profits through cost reductions by utilizing Japanese anchovy oil.

36

14

8

FY2024

FY2025

Plan

FY2027

Plan

Operating Profits of Fine Chemicals Business

Percentage of sales volume by area of pharmaceutical raw materials (2023)

2025年度

2027年度

中計目標

2024年度

ー Measures

Source: Compiled by Nissui based on Omega-3 Ingredient Market Report 2023, Global Organization for EPA & DHA (GOED)

・(Japan) Mochida Pharmaceutical's new Epadel dosage form is easy to consume and patient-friendly, and sales will expand again due to increased demand. Japanese anchovy oil is used, reducing costs such as foreign exchange risk and logistics costs.

・(Europe) Shipment started. Expand prescriptions in countries already available, enable sales in unapproved countries.

・(North America) Optimize inventory at sales destinations.

Responding to Changes in the Business Environment (U.S. Tariffs)

Although there are concerns about the Trump risk, we will leverage Global Links’ strengths to

quickly take measures such as changing suppliers.

ー Procurement in the U.S. is the primary source, and the impact is minimal. Consumption trends are uncertain.

ー Shrimp procurement costs increase. Considering a change in suppliers is also risky. It will be difficult to pass on the price due to the price difference with other proteins, such as chicken.

＜Trading＞

ー Sales of whitefish products processed in China may decline in the U.S. It also takes time to consider alternative processed products.

Sustainability Initiatives Upcycling to High Value-Added Products

Utilizing the skin of cultured yellowtail from sustainable artificial seedlings, we will find new

value.

We have developed "namino leather", a fish leather that utilizes the skin of the full-life cycle aquacultured "Kurose buri".

Non-edible parts

Heads, bones, tails, skins, etc. generated during the processing process

Cleans grease and dirt from the skin

Finished with tanning and dyeing

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Edible parts

High value-added products such

as fillet and sashimi processing 29

Nissui will work to enhance our adaptability to change and strive towards the long-term vision of becoming a leading company that delivers friendly foods both for people and the earth, “GOOD FOODS 2030.”

© Nissui All Rights Reserved.30