News Release
March 23, 2018
Nishimoto Co., Ltd.
(1st section of the Tokyo Stock Exchange, local code 9260)

Wismettac Foods, Inc. Achieves Initial Sales Target of 100 Million Yen for New Export
Business Featuring Domestic Kodama (Small) Apples (Brand Name: SUGOI)

We would like to announce that our subsidiary, Wismettac Foods, Inc. (“WF”—Headoffice: Nihonbashi, Tokyo, President Hiroshi Tsujikawa) has achieved its goal of 100
million yen in export sales for its new business featuring domestic Kodama (small)apples (Brand name: SUGOI), in the first season (November 2017 to March 2018).
1. Backdrop
Fruits domestically grown in Japan are popular as high-quality and delicious produce inSoutheast Asia and are especially sought after by wealthy local consumers. Apples areespecially popular in high-income brackets of Taiwan and Hong Kong. However, thequantity of Japanese apple exports had plummeted between September 2016 andAugust 2017, reaching only 76% of the previous year’s level (research by the Aomori
Apple Export Council).
For this reason, WF, joined hands with the National Federation of Agricultural
Cooperative Associations, Aomori Headquarters (JA ZEN-NOH Aomori) and theTsugaru-Mirai Agricultural Cooperative Association (JA Tsugaru-Mirai) to develop newmarkets. With the concept of “Easy to Buy” apples, middle-class consumers in Southeast
Asia were targeted. Kodama (small) apples are affordable, high-quality produce. Oncethe distribution channel was determined, a brand name expressing the apple’s traits,
SUGOI, was coined and an overseas sales trial launched.
SUGOI is a Japanese word, which includes “excellent,” “astonishing” and “very good”
among its meanings. These apples were particularly well received in Thailand as an[Extremely Delicious Apple] brand. The Kodama (small) apple harvest/sales season isNews Releaseset for November to April. Exports to Thailand started in December 2017, and havereached a total sales weight of 85,000 kilograms this season. This accounts forapproximately 40% of all Japanese apples in Thailand (our company estimate is basedon customs statistics).
In addition to exports to Taiwan and Hong Kong, we have also started exporting applesto Singapore, Malaysia and Cambodia. As a result, this season resulted in 100 million
yen in sales, the amount of our initial sales target.
With the trial sales results, WF will boost its collaboration efforts with JA ZEN-NOH
Aomori and JA Tsugaru-Mirai to expand sales from next year onward.
2. Future forecast
From next year onward, plans have been made further expand the business to a scale ofaround one billion yen in the next few years.
Furthermore, we forecast that this operation will have only slightly effect the 2018
December consolidated results.
3. Overview of WF(1) Company name: Wismettac Foods, Inc.
(2) Head office: 3-10-5, Nihonbashi, Chuo-ku, Tokyo(3) Representative: President Hiroshi Tsujikawa(4) Paid-up capital: 30,000,000 yen(5) Principal stockholders: 100% Nishimoto Co., Ltd.
(6) Company business: Domestic/overseas sales of agricultural/seafood produce(Agricultural & Seafood Products Trading Business)

News Release＜Reference＞[Contact information for inquiries]
Nishimoto Co., Ltd.
Corporate Planning Department Telephone: 03-6870-2015