Nichimo : IR Midterm Topics for the Year Ended March 31, 2023

First Hokkaido-Farmed Silver Salmon Harvested in Kushiro.

One metric ton of farmed silver salmon, roughly four hundreds of market size fish, was unloaded at the Port of Kushiro, Hokkaido in October 2022. It was the first harvest of silver salmon ever farmed in the northern island. It is a trial project ofKushiro City and local fishermen started in September 2022 in

collaboration with Nichimo's R&D Department and its group company, Nichimo Mariculture. The northeastern region of Honshu, Japan's largest island, is the supply center of farmed silver salmon, but its harvesting season is shortening and ends in summer due to rising seawater temperatures. The market faces the short supply of the domestic farmed fish once its harvest season is over. In this project, silver salmon are farmed in rough waters at the Port of Kushiro and supplied to the market when the supply from the farms in Honshu is no

longer available, thereby discriminating and adding value to their rich, buttery-flavored fish. The Nichimo Group contributes to the salmon farming industry in Japan with our expertise, technologies and years of experiences. Kohaku Salmon from Iwate and Miyagi Salmon from Miyagi are among the established farmed salmon brands we developed with the farmers. We support the project in Hokkaido with our

comprehensive services from supply of aquaculture equipment and supplies, the juvenile fish and feed, to provision of information and technologies and to marketing and processing of their market size fish.

The project introduces an advanced, automated feeding system to optimize the feeding efficiency and minimize the potential impact of any leftover feed on the surroundings. The fish is supplied to local retailers and restaurants. The recent successful harvesting will be followed with expanded operation of the project and supply of the fish, a new specialty from Kushiro, nationwide.

From Ocean to Dining. Nichimo continues contributing to people's healthy and vibrant lives with our comprehensive services to the aquaculture industry and beyond while addressing issues of declining natural marine resources.

Yamaichi Suisan Completed Construction of New Food Processing Factory.

Yamaichi Suisan, our group company in

Monbetsu, Hokkaido, completed construction of another new food processing factory in June 2022. The new factory is a project under the Fiscal 2023 Medium-Term Management Plan to make our business operations more sustainable. Pollock caught in Japanese waters are brought to the factory and freshly and quickly sorted, headed and gutted and filleted to be

processed into high quality frozen surimi blocks at Yamaichi Suisan. The factory's highly automated facility replaces conventionally manual, labor-intensive primary processing of the fish, successfully reducing the time required for such primary processing to less than a quarter. It is also a solution to secure continued supply of safe and accountable products while addressing an imminent labor shortage due to Japan's declining birthrate and aging population. The factory was constructed with a subsidy from the Ministry of Agriculture, Forestry and Fisheries of Japan to

facilitate export-oriented factory improvement and increase the value added to food products. The recent addition of this new, highly automated

primary processing factory, combined with the company's existing surimi processing lines, allows Yamaichi Suisan to increase the production of domestic, high quality Pollock surimi products competitive with the counterparts processed in the US. Yamaichi is in the process of securing HACCP certification for the company's surimi factories to exhibit the products' safety and accountability to our clients and major mass retailers.

Yamaichi also processes and supplies fish meal and fish oil products at the company's new fish meal factory built in March 2022. The company's fish meal and fish oil production capacity is now 20% higher. These products are used as ingredients of aquaculture and poultry feed. The factory is equipped with an odor and sewage control system, which was installed with a subsidy granted by Monbetsu City, to make the

factory and its operations community- and environment-friendly.

With the efficient production and increased capacity, Yamaichi Suisan secures continued supply of seafood products while maintaining high safety standards of the facilities, minimizing industrial wastes and saving energy to reduce potential burden to the local environment.

We are committed to contributing to local communities by providing workers with enhanced, worker-friendly environments, acting on reduction of environmental burden and raising brand power of our surimi products, and continue investing in growing business sectors to strengthen our corporate capabilities further.