Nichirei by the Numbers

Introducing the industry environment, positioning, and strengths of each of our Business divisions

Growth driver: focus is on expansion

Focus is on maintaining status quo by boosting efficiency

Group composition: major segments	Net sales and operating income trends by segment	Management based on an awareness of efficiency and financial balance
Processed foods growing year by year Slight growth in frozen foods market	Increasing share of market for frozen foods in general	Nichirei stands out from the competition by virtue of our superior ingredients and greater capacities for product development and quality assurance
Continued slight uptrend in output	No.2 in household-use frozen food industry	Strength in foods for boxed lunches and in rice-based and other snacks
Commercial use in general has peaked out, but home meal replacement still growing	Nichirei is the top player in commercial use frozen foods; continued growth in our specialty area of home meal replacement	Strength in processed chicken products, croquettes and other home meal replacement foods
Continued decline in fish consumption, year by year	One of the industry’s major players Especially strong in shrimp	Promote revitalization plan, improve profitability
Gradually increasing popularity of chicken products through low prices and high feed efficiency	Major player in domestically produced fresh chicken	Quick inventory turnover, maintain high level of capital efficiency
Overall surplus in storage capacity Aging equipment	Largest share of frozen storage capacity in industry	Enhanced competitiveness due to a strong locally customized sales system and updating of equipment
Every year, companies are outsourcing more of their distribution processes	Among the industry’s top players in terms of net sales	Greater capacity to propose solutions and operational expertise distinguish Nichirei from competition
Development of cold chains, primarily in the U.S. and Western Europe	Expanding from our hub of Rotterdam Entering the Eastern European and Chinese markets	Make the most of high quality distribution services to expand business base
Business consists mainly of making use of Group-owned properties; secure stable profits, mainly from rental income