Securities code: 1301

Shareholders Information
Business year:

April 1 to March 31 next year

Ordinary general meeting ofshareholders:June of each year

Record date for exercising voting
rights at the ordinary general
meeting of shareholders:March 31

Term-end dividend record date:

March 31Media for public notice:

The Company displays public notices by electronic means.
Public notices are displayed online on the Company’s
website: https://www.kyokuyo.co.jp. However, if theCompany is unable to issue public notices by electronicmeans due to accidents or any other unavoidable
circumstances, public notices will be displayed in the
Nihon Keizai Shimbun newspaper published within Tokyo
Prefecture.

Shareholders list manager and special
purpose bank accounts manager:

Mitsubishi UFJ Trust andBanking Corporation

Contact information:

Transfer Agency, Mitsubishi UFJ Trust andBanking Corporation
1-1 Nikko-cho, Fuchu-shi, Tokyo
Phone: 0120-232-711 (toll-free in Japan)
Mailing Address: Transfer Agency,
Mitsubishi UFJ Trust and Banking
Corporation 137-8081, New Tokyo Post
Office P.O.B. No. 29

BUSINESS
101st Business Report
April 1, 2023

March 31, 2024

Dandori-Nya(Note)
1.Procedures for shareholders’ requests for changes of address and share purchasesby stock companies shall, in principle, be performed by the account management
agencies (securities firms etc.) for shareholders. Please ask the securities firm etc.
where you have your account about the procedures. The shareholders list manager(Mitsubishi UFJ Trust and Banking Corporation) cannot handle the procedures.
2.For procedures concerning shares in your special purpose bank account, please ask
Mitsubishi UFJ Trust and Banking Corporation, which is the special purpose bankaccounts manager. Branches of Mitsubishi UFJ Trust and Banking Corporation
nationwide are able to accept inquiries.
3.Dividends that you have not received will be paid at the head office or branches ofMitsubishi UFJ Trust and Banking Corporation.

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KYOKUYO CO., LTD.
3-3-5, Akasaka, Minato-ku, Tokyo 107-0052

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elicious. KY OKUYOTO OUR SHAREHOLDERS

We are pleased to present
this business reportfor the 101st fiscal term

Corporate Philosophy(term ended March 2024).

Aiming to grow together with

We would like to takethis opportunity
to thank our shareholders

society, contributing to a healthy
and happy lifestyle and foodculture based on management of
human respect

for their support.
President and Representative Director

Makoto Inoue

The current fiscal year saw improvement to thefood services and tourism industry situation, although
the business climate remained severe due toconcerns about the impact of the ALPS treatedwater discharge, as well as persistently high energy
and raw material prices and logistics costs. Amidsuch an environment, the Kyokuyo Group took actionin this final year of our medium-term business plan
“Build Up Platform 2 0 2 4” to expand the Processed
Food and Overseas Businesses, and to reinforce ourfinance and human resource bases.
Now, from this fiscal year we have started “Gear
Up Kyokuyo 2027,” our new three-year medium-termbusiness plan. Having defined our purpose as
1“Contributing to people’s lives and the planet throughfoods with a focus on fish, for a more sustainable
world,” we are working to expand our businessfoundation on a platform built by the previous
medium-term business plan, and endeavoring tostrengthen the partnerships we have with our
stakeholders. In addition, in March of this year we
executed a public stock offering to carry out capital
investment in overseas production bases, and we willfurther strengthen our financial base and establish a
structure that enables an aggressive investment ingrowth.
We would like to ask our shareholders for theircontinued support.
2

Financial information is available here
https://www.kyokuyo.co.jp/en/ir/highlight/index.html

FINANCIAL HIGHLIGHTSKey Consolidated Performance Indicators

PointsPoints
Profits
reached record highs for two consecutive
fiscal years
Substantial improvement in profit for Marine
Products and Processed Food BusinessesThe
equity ratio rose due to record-high profits
and an increase in equity capital through apublic stock offering, etc.

Net sales(Million yen)

300,000

261,604

Operating profit / Operating income margin
Operating profit (Million yen)
Operating income margin (%)

272,167
253,575

8,806
6,392

March March March March2022 2023 2024 2025

Ordinary profit / Ordinary income margin

Profit attributable toowners of parent(Forecast)Ordinary profit (Million yen)
Ordinary income margin (%)

10,000(Forecast)(Million yen)

58,860130,460

46,966

March
2022

March
2023

March
2024

Equity ratio /Return on equity (ROE) /Return on asset (ROA)(%)
Equity ratio

ROE

ROA

5,782

8,182

3.4

7,000

5,936

8,856
3.0

(Million yen)

3.3

March March March March2022 2023 2024 2025
(Forecast)

160,720

146,301

3.3

March March March March2022 2023 2024 2025

2.7

Total assets(Million yen)

42,174

3.4

3.0

2.5

6,904

Net assets

10,0008,105

3

Key Consolidated Financial Indicators

4,634

March March March March2022 2023 2024 2025
(Forecast)

32.7

32.5

11.2

12.8

36.7
11.1

5.6

5.9

5.8

March
2022

March
2023

March
2024

March
2022

March
2023

March
2024

Reference
Cross-Shareholdings
Amount recorded in the balance sheet
and ratio to consolidated net assets ofshares held by the Company for purposes
other than net investment
The amount recorded in the balance sheet forshares held by Company (Million yen)
A ratio to consolidated net assets (%)

20.5

20.2

8,659

9,507 11,114

March
2022

March
2023

18.9

March
2024

4

SEGMENT INFORMATION

Marine Products BusinessNet sales

Operating profit (Million yen)

139,058

127,694
5,001

2,740
March
2023

Processed Food BusinessNet sales

127,694Million

Operating profit

March
2024

Freshfoods Business

72,588
5,406

March
2023

66,147

Net sales

25.3 %

66,147Million

Operating profit

2,485

2,485Million

March
2024

This segment consists of the sushi and sashimi business, led
by sushi toppings, the tuna business, which handles everythingfrom catching skipjack and purchasing tuna to processing andsales, and the aquaculture business. Sushi toppings are not only
for Japan, but also promoted for sale to overseas franchises of
conveyor-belt sushi restaurants. For skipjack, we have our own
procurement capability with Group-owned vessels, and we farm
tuna in Shikoku and ship it under our original brand name “HonMaguro no Kiwami.” Our subsidiary in Kochi Prefecture engages
in aquaculture of red sea bream, and we are working to expand
the variety of farmed fish and strengthen access to resources.
565,634
2,613

801
March
2023

48.8

Operating profit (Million yen)

Operating profit (Million yen)

58,6845,001Million

Utilizing our domestic and international procurement
network constructed since we started out as a fishingcompany in 1937, we have stable sources of high-quality
marine products from around the world and provide
processed products such as fish fillets, crabs,
and peeled shrimp. As for the Overseas
Business, the linchpin of our efforts, we are%working to develop the Group’s own overseas
production bases and strengthening global
sales of processed products and foods, in
Composition ratio
addition to export sales of Japanesemarine products.

Net sales

Net sales

Net sales

65,634Million

Operating profit

2,613Million

March
2024

This segment is composed of frozen food products forindustrial use, frozen and chilled food products for home use,and shelf-stable foods such as canned foods and seafood
delicacies.
Frozen food products for industrial use include thesimmered and grilled fish, fried marine products,
imitation crab meat, and Dandori Jozu series,
consisting of boneless fillets, and are sold torestaurants, deli departments of mass retailers,and medical and nursing care facilities.
of sales by segment
For frozen food products for home use, weoffer products such as simmered and grilled
fish, and that can be used as dishes for dining
tables or lunch boxes. Canned products include
mackerel and other canned seafood, as well as
canned meat and agricultural products. We also
sell delicacies such as squid jerky and healthproducts like DHA supplements.

25.1 %
0.6 %Logistics BusinessNet sales

Operating profit (Million yen)

1,361
203
March
2023

1,599
289

Net sales

1,599Million

Operating profit

289Million

March
2024

The Logistics Business provides logistics services such as
distribution and delivery from warehouses, with a primary
focus on the cold storage business in three sites in Ohi and
Jonanjima in Tokyo, and Fukuoka.
6Looking back on

Build Up Platform 2024

Aiming for new growth founded ona “change to a high-profit structure”

Summary

Major strategies and initiatives

The Processed Food Business has shifted to a highprofit structure by expanding sales of products
manufactured in Kyokuyo’s own plants. Moreover, acertain amount of success has been achieved with theconstruction of an overseas purse seiner that has
boosted access to resources, the broadcast of new
television commercials to raise the brand profile, and astrengthened financial base owing to a public stock
offering, among others.
On the other hand, the Overseas Business missed
meeting initial plans due to the prolonged COVID-19
pandemic and declining consumption caused by inflationin Europe and the US, and other factors, despite efforts
to develop production bases. In the Marine Products
and Tuna Businesses, we worked to stabilize profits,
although having been impacted by the marine products
market, challenges remained with the expansion ofprocessed products and in anticipating market
conditions.

01 Expanding Processed Food Business

Target value and Results
2024/3Results

2024/3
Target value¥261.6 billion¥300 billion

Operating profit¥8.8 billion¥7.0 billion

Ordinary profit¥8.8 billion¥6.5 billion

Operating income
marginOrdinary income
margin3.4%

Over 2.0%

3.4%

Over 2.0%

Overseas sales¥21.8 billion¥30 billion

1.4 times

1.5 times

Net sales

D/E ratio
7

the previous mediumterm business plan

In the Processed Food Business segment we strengthened
the sales structure by reorganizing from product categories tobusiness categories. In addition, together with a focus on salesof products manufactured at our own plants, we promoted
high profitability by consolidating production items.

02 Expanding Overseas Business
Based on the policy of “produce overseas, sell overseas,” weestablished overseas production bases.
In addition to the completion of our main overseas plant inThailand, within fiscal 2024 commencing operations will be a
new plant in Vietnam that targets food production for Southeast
Asia, and another in North America to produce imitation crab
meat for the US. Furthermore, we have reinforced a foundationthat will work to expand the Overseas Business into the future
through, for example, investing in a Turkish company that
manufactures frozen foods and also exports into Europe.

03 Strengthening financial infrastructure
We have raised approximately ¥3,700 million through a publicstock offering that will allow us to make aggressive investments
into overseas production bases. Expanding our equity capitaland reducing debt has helped us secure the financial flexibility torespond with agility to investments in growth, such as with the
expansion of production scale. We will continue to eagerly makeinvestments that will lead to increased corporate value.
8For a strong Kyokuyo

New Medium-Term Business Plan

Gear Up Kyokuyo

2027
Purpose(FY2024-FY2026)“Contributing to people’s lives and the planet throughfoods with a focus on fish, for a more sustainable world”

01

Adapting tochangeEngagement

Three perspectives

01 Human resources and organization
Emphasize our engagement with each individual in each company
within the Kyokuyo Group to create a work environment in which
each employee can play an active role, and through the developmentof human resources that will be the driving force for growth, put inplace an organization that can respond to changes in society.

02 Four businesses
Strengthen and expand Kyokuyo Group centering on fourbusinesses, namely, marine products, freshfoods, processed food,and overseas, as an organization rich in human resources that canadapt flexibly to change.

902

Four businesses
Marine Products Business
Freshfoods Business
Processed Food Business
Overseas Business

Based on our corporate purpose, while expanding ourbusiness base and strengthening our financial base as well as
our partnerships with stakeholders, we will work to achieve
our missions, pursuing a strong Kyokuyo by implementing
measures from the following three perspectives.
Expanding business base (production sites, sales sites, etc.)
Strengthening financial base (acquiring stable profits, diverse procurement of capital, etc.)
Strengthening our partnerships with stakeholders (customers and business partners)

Strengthen
andexpandHuman resources andorganization

03
Globalization
Sites
MarketProducts

Kyokuyo Group’s Missions
Providing healthy, safe, and reliable foods
P racticing responsible procurement in the global
supply chain
Realizing sustainable food in harmony with society
and the global environment
Creating a cheerful company where each and every
individual can play an active role

In addition, the Company has set KPIs to achieve our goal ofstrengthening and expanding the Kyokuyo Group, and toaccelerate growth.

Objective

Target value for the fiscal year ending March 2027

Expanding businessscale

Net sales of ¥400.0 billion

Strengthening highprofit structure

Operating/ordinary profit of ¥13.5 billion

03 Globalization

Promoting globalization Overseas net sales ratio of 15% or more

Expand our business wings overseas, where demand for marine
products is growing, by establishing local production and sales
structures for products that meet the food needs of different regions
around the world through the development of four businesses, as
responding to food diversity will lead to business opportunities.

Emphasizing asset
efficiency

ROIC (return on invested capital) of 6% or more

Enhancingshareholder returns

DOE (dividend on equity ratio) of 3% or more
10

SHAREHOLDERS INFORMATIONTOPICS

Shareholder Returns
Dividends:

A new personnel system
Under the new system introduced in April 2023, theaverage annual salary and starting salary have beenraised by approximately 20% and 30%, respectively, andthe retirement age has been extended from 60 to 65.
Based on the management vision that the happiness of
employees is essential for the Company to remaincompetitive, and with the aim of responding todiversifying ways of working and changing lifestyles, wecreated a system that allows for more appropriate
evaluation of contributions to the organization, abilities,
qualities, etc., regardless of age.

100 yen

We aim to enhance its internal reserves to strengthen its
corporate structure and prepare for future businessdevelopment, while at the same time maintaining stabledividends and improving the level of dividends through mediumto long-term profit growth. We will propose a dividend of 100
yen per share for the fiscal year ended March 31, 2024 at the
101st Ordinary General Meeting of Shareholders.

Dividends (dividends per share)
(yen)

80

90

100

100

March
2023

March
2024
(forecast)Marine resource survey
The resource status of marine products procured by
the Group in fiscal 2020 was surveyed and announcedin October 2023. The results of the survey were sharedthroughout the Group and will be of merit for businessactivities that take into consideration the conservationof biodiversity and ecosystems, and the sustainable useof marine resources.

March
2021

March
2022

Introduction of Shareholder Special Benefit Plan
We have a shareholder special benefit plan, which we
operate as a token of our appreciation for the support of ourshareholders and to increase the number of shareholders byenhancing the appeal of shares in the Company.

Seenext page11

12

SHAREHOLDERS INFORMATION
Details of Special Benefit Plan

Stock Information (As of March 31, 2024)
Total number of shares the company is authorized to issue: 43,700,000

Target Shareholders
Shareholders on the Company’s register of shareholders who holdone unit of shares (100 shares) or more on March 31 of each year
Shareholders
who hold a unit of shares (100 shares) or more andless than three units of shares (300 shares)
Presented with the Company’s products valued at ¥2,500
Shareholders
who hold three units of shares (300 shares) or more
Presented with the Company’s products valued at ¥6,000

Shareholder’s name

The Master Trust Bank of Japan, Ltd. (Trust account)
Resona Bank, Limited
The Norinchukin Bank
Custody Bank of Japan, Ltd. (Trust account)
Toyo Seikan Group Holdings, Ltd.

Shipment:

Mitsui Sumitomo Insurance Co., Ltd.

Gifts will be shipped each year in July.

Tokio Marine & Nichido Fire Insurance Co., Ltd.
Noriaki Nakamura

The Company’s
products presented

Assorted canned
products valued at¥2,500S immered mackerelwith miso
Boiled Alaska
salmonBoiled scallops

JP MORGAN CHASE BANK 385781
Kyokuyo Akitsukai

S immered mackerelwith miso x 2 cans
Red snow crab leg meat
Boiled Alaska salmon x 2 cans
Boiled scallops

No. of shares held Equity position(thousands)

(%)

1,162
523
445
424
315
250
224
169
149
146

9.75
4.39
3.73
3.55
2.64
2.09
1.88
1.41
1.25
1.22

*Of the above-listed shares, all shares held by The Master Trust Bank of Japan,
Ltd. and Custody Bank of Japan, Ltd. are related to the trust business.

Distribution of shares by shareholder type

Financial institutions
3,487 (28.9%)

No. of shares oftreasury stock
162 (1.3%)

Assorted canned
products valued at¥6,00032,021

Number of shareholders:Major shareholders

Benefits

Examples of benefits(FY2023)

12,078,283

Total number of shares issued:

Individuals
and others

6,030 (49.9%)

Securities companies
Total shares
12,078(thousands)

191 (1.6%)

Other companies
1,245 (10.3%)

Foreign companies and individuals
961 (8.0%)

Trends of Stock Prices and Trading Volume
Price Range

Volume(yen)

80,0003,000

60,0002,000

40,0001,000

20,0000

13(hundreds)

4,000

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
2022
2023
2024

0

14