Having been appointed the new president of Nippon Suisan Kaisha, Ltd., I would like to take this opportunity to make a few remarks about several key issues.

Last year marked the centennial anniversary of the founding of the Tamura Steamship Fishery Division, which was our predecessor. Looking back upon the history of Nissui over the past 100 years, it has been a century of continual hardships. Yet the people who came before us faced and tackled each and every one of those hardships, and the company has developed itself to where it is today.

In beginning a new century in 2012, we should first recognize that people's lifestyles and spending habits are changing dramatically. Amidst these changes, the Nissui Group has committed in our Medium-Term Management Plan (FY2012-2014), which was created in April of 2012, to becoming a manufacturer offering "products derived from the plentiful resources of the land and sea that are tasty and healthy and that bring joy and beauty into the lives of our customers." In the final fiscal year of this management plan, our goals are to have at least ¥600 billion in consolidated sales, ¥23 billion in consolidated operating income, and a ratio of overseas sales to total sales of 26%.

To execute this Medium-Term Management Plan, we must revisit the company's Founding Philosophy, particularly as advocated by Kosuke Kunishi, an important figure in the establishment of the company. The basic management philosophy of the plan is to give special consideration to the sustainable use of marine resources and preservation of the global environment while utilizing marine and other resources to better the lives of people throughout the world and offer them more promising futures by continuing to create diverse value. To achieve these objectives, we will execute the following business-specific management strategies.

In our Marine Products Business, we will bolster our ability to access marine resources while giving sufficient consideration to sustainability. In our aquaculture business in particular, we will improve our artificial fingerling and aquaculture feed, and by doing so produce farmed fish that surpasses our competitors in terms of both quality and cost

In our Food Products Business, we will not only improve customer convenience, but also utilize Nissui's own vertically-integrated production systems to further improve product quality and taste and strengthen food categories that our customers want. In this respect, we intend to create new categories of foods to meet the changing demands brought about by Japan's aging society, the decrease in family size, and the general shift in the type of cooking done at home.

In our Fine Chemicals Business, we aim to become a leading manufacturer of functional lipids, with a core of EPA,*1 DHA, arachidonic acid,*2 and related businesses. Our goal is to create a foundation for global expansion. We shall also improve the proprietary technologies and manufacturing processes that Nissui uses to produce functional lipids in order to further differentiate our products from our competitors'.

In our General Distribution Business, we are committed to creating value networks that balance the interests of both distribution efficiency and environmental concerns.

As for group management, we shall bring together our global strengths with our network of Local Links at the core.

We continue to face a severe business climate, but as president I intend to present a clear vision for the path that the Nissui Group should take. I also promise to do whatever is in my power to meet the targets of the Medium-Term Management Plan. I humbly ask all of you to join me in this endeavor.

*1 EPA and DHA:
EPA (eicosapentaenoic acid) and DHA (docosahexaenoic acid) are essential fatty acids found mainly in fish oils. EPA is an important compound for maintaining the health of the blood and blood vessels. DHA is a primary component of brain and other nerve cells.
*2 arachidonic acid:
Arachidonic acid is an essential fatty acid found mainly in meats (especially liver) or eggs.
Arachidonic acid is also a primary component of brain and other nerve cells and used in infant formula all over the world.

June 2012
Norio Hosomi
President & CEO,
Nippon Suisan Kaisha, Ltd.