May 10, 2024
To whom it may concern
Company Name: Kyokuyo Co., Ltd.
Representative Name: Makoto Inoue, President(Tokyo Stock Exchange Prime Section
Securities Code: 1301)
Contact: Hitoshi Higaki, Managing Director(TEL: 03-5545-0703)

New Medium-Term Business Plan: “Gear Up Kyokuyo 2027”(FY2024 - FY2026)

I. Social and Economic Environment
While social and economic activities in Japan have been on the road to recovery since the COVID19 pandemic, circumstances remain difficult, what with soaring energy and raw material prices, andthe worsening labor shortage. The outlook outside of Japan remains uncertain as well, due to theprotracted nature of the Russia-Ukraine conflict, increased geopolitical risk due to the regional conflicts
in the Middle East, and the growing risk in China due to their economic slowdown and foreign policies.
The fisheries and processed food industry also continues to face difficulties due to the effects of theALPS treated water discharge, high energy and raw material prices and distribution costs with regards
to production, and the prolonged depreciation of the yen.
It is under these circumstances also that the Bank of Japan has put an end to its negative interest
rates, shifting its monetary policy from its long-term deflationary phase to an inflationary phase.
Companies must strengthen their overall ability, including elements like growth potential and continuity,
in order to build structures that can handle these sorts of changes in society, the economy, and thegreater world.

II. Reflecting on the Previous Medium-Term Business Plan
In the previous medium-term business plan, we worked on “Change to a high-profit structure” as thefoundation for our new growth, allowing us to create values to be shared by both society and Kyokuyo.
While we were very much affected by the COVID-19 pandemic from our first year, we achieved theprofit targets of our previous medium-term business plan in the fiscal year ending March 2023, andupdated our all-time high profits. This means that to a certain extent we did achieve a change to a highprofit structure—one that would lay the foundation for new growth by improving our profitability.
On the business side, we were able to strengthen our management base for further growth by1stabilizing our profits through organizational changes to improve customer handling ability in ourprocessed food business, the absorption of cost increases through price revisions, etc.; expanding
production capacity through the completion of our new plant in Thailand; building an infrastructure foroverseas production sites in Vietnam, North America, etc.; building a new, internationally competitive,
large-scale overseas purse seine vessel; establishinga Resources Research & Development

Department with the aim of expanding our aquaculture business; and more.
On the financial side, we procured equity funds through public stock offerings for the first time since
1961 in order to invest in our growth, including the development of overseas sites, and worked toexpand our equity capital and reduce our borrowings. This has given us the financial flexibility to handle
future growth strategies for expanding production scale and improving the profitability of our overseas
operations, and has strengthened our financial base by making our capital structure capable ofwithstanding the increased risks associated with business expansion.
We also worked to strengthen our human resource base by introducing a new personnel system toimprove employee work engagement, based on our management vision that frames employee
happiness as essential for the company to remain competitive. In addition to strengthening ourgovernance, we have also made progress towards sustainable growth by implementing an executive
officer system with the aim of fostering the next generation of management personnel.
We did not, however, achieve our net sales target, and challenges remain in our business expansion,as the expansion of our overseas business has only just begun. And despite earning record profits, wewere unable to stabilize our profits in the marine products business, due to it being severely impacted
by the volatility of the marine products market. The cash generation in our businesses also remains achallenge.

Ⅲ. Formulating the New Medium-Term Business Plan
The Kyokuyo Group has set “Contributing to people’s lives and the planet through foods with a focus
on fish, for a more sustainable world” as our corporate purpose, so as to steadily realize our corporate
philosophy of growing together with society and contributing to food culture. In this new medium-termbusiness plan, we will build on the achievements of the previous medium-term business plan to expand
our business base and strengthen our financial base, as well as our partnerships with stakeholders.
1. Expanding business base
To expand our business base, we will implement measures that lead to growth, such as capital
investment, to accelerate the expansion of our production and sales sites, expand business scale,and increase our net sales and profits. In doing so, we aim to further expand and strengthen ouroverseas business and processed foods business, which has been part of our strategy since theprevious medium-term business plan. To enhance the stability of our businesses, we will also
further promote the creation of high value-added products that are less susceptible to influence by2

the marine products market, and that can ensure high profitability, and aim to create the sort ofbusiness expansion that can generate steady cash flow.
2. Strengthening financial baseA strong financial base is a prerequisite for the expansion of business base. In addition toincreasing our capital through stable profits, we will further strengthen our financial base by
diversifying our financing methods in an interest rate-conscious way, thereby establishing astructure that can respond proactively to investments that will accelerate the Group’s growth. We
will also strive to optimize our capital investment and management through asset efficiencyoriented management, using ROIC as an indicator.
3. Strengthening our partnerships with stakeholders
Strengthening and expanding our business is only possible when there is strong trust between us
and our various stakeholders, from consumers to business partners, shareholders/investors,employees, and more. We will build this trust by actively communicating with our stakeholders;providing healthy, safe, and delicious foods to consumers; building win-win business relationships
with business partners through effective sales strategies and product development; disclosing
information in a timely and proactive way, and providing stable and substantial dividends toshareholders/investors; and providing a comfortable work environment, including increased
income levels, to our employees.
The sustainability of society, the environment, the economy, and our Group is also a prerequisite
to the growth of the Kyokuyo Group, and an integral part of our management. We will also engage
in sustainability-conscious management that emphasizes corporate ethics, including governance,and human rights for all people involved, while also working actively to solve social issues throughour businesses, for instance contributing to the advancement of carbon neutrality.
While expanding and strengthening our base in these ways, we will also be implementing measuresto achieve the Group’s mission, based on the sustainability of society, through the three perspectivesof “Human resources and organization,” “Four businesses,” and “Globalization.” In doing so, we will
strengthen and expand our Group and accelerate its growth.

3IV. New Medium-Term Business Plan: “Gear Up Kyokuyo 2027”
1. Illustrative diagram

PurposeContributing to people’s lives and the planet throughfoods with a focus on fish, for a more sustainable world

For a strong Kyokuyo
Strengthen
and expand

Globalization
Sites
MarketProducts
Human resourcesand organization

Adapting to change
Engagement

Four businesses
Marine products business
Fresh foods business
Processed food business
Overseas business

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)

Kyokuyo Missions
1

Providing healthy, safe, and reliable foods

2

Practicing responsible procurement in the global supply chain

3

Realizing sustainable food in harmony with society and the global environment

4

Creating a cheerful company where each and every individual can play an active role4

2. Three perspectives(1) Human resources and organization
The key to surviving this era of rapid change is strengthening corporate resilience, andparamount to this endeavor is the effective utilization of human capital and human resources.
As such, we will work to create a cheerful work environment that will allow each individual
within the organization to express their individuality and exert their abilities. To do so, we willemphasize our engagement with each individual in each company within the Kyokuyo Group,
and work to grow with all of them together.
We will also acquire and train the kind of human resources needed for these efforts in orderto build an organization capable of responding to changes in social needs and the businessenvironment.
(2) Four businesses
As an organization rich in human resources that can adapt flexibly to change, we will develop
the four businesses that comprise the pillars of the Kyokuyo Group—marine products, freshfoods, processed food, and overseas business—to strengthen and expand the Group. And
through these four businesses, we will provide healthy, safe, and reliable foods.
We will also further hone our product development capabilities and enhance our brand powerwith “Only Kyokuyo” products that fulfill the needs of society.
In the meantime, we will also practice responsible procurement of raw materials and othermaterials in our global supply chain, to realize sustainable food that is in harmony with society
and the global environment.
(3) Globalization
Each region of the world has different food preferences and demands, and responding to thiskind of food diversity will lead to business opportunities. We will skillfully identify the foodneeds of each region, establish local production and sales structures, and promote globaldevelopment in the most optimal way. Global demand for marine products is growing
dramatically, and we believe that we can fully demonstrate the experience the Kyokuyo Grouphas cultivated over the decades not only in Japan, but on the global stage as well.
By deepening our domestic development and expanding our overseas business wings, we willfurther accelerate our growth (Gear Up) and pursue a “strong Kyokuyo” that is strengthened andexpanded as a company.

53. Setting KPIs (Key Performance Indicators)
The following KPIs have been set, and business operations will be promoted, in order to achieve
our goal of strengthening and expanding the Kyokuyo Group, and ensure our acceleration towards
growth.
FY ending March 2027
Target value
Net sales

400 billion yen

Operating profit

13.5 billion yen

Ordinary profit

13.5 billion yen

Overseas net sales ratio

15% or more

ROIC (Return on invested

6% or more

capital)
DOE (Dividend on equity

3% or moreratio)(Target values by segment)
Net sales

Operating profit

235 billion yen

7.4 billion yen

Fresh food77 billion yen

3.4 billion yen

Processed

85 billion yen

4 billion yen

Logistics

2.5 billion yen

0.3 billion yen

Other

0.5 billion yen-1.6 billion yen

Total

400 billion yen

13.5 billion yen

Marineproducts

food(1) Expanding business scale
The KPI for business scale expansion has been set to net sales, with a target value of 400billion yen. We will strive to increase our net sales through global development of ourbusinesses, increasing our supply capacity by strengthening our access to resources,increasing our ability to propose products to our customers, and more.

6(2) Strengthening high-profit structure
We have set the KPIs to be operating profit and ordinary profit, with a target value of 13.5
billion yen, in order to further strengthen and expand the high-profit structure we laid thefoundation for in the previous medium-term business plan. We aim to achieve this goal by
securing high profits through the further development of production and sales systems
centered around our own factories, the development and sales of high value-added productsthat fulfill the needs of society, and more.
(3) Promoting globalization
Promoting the globalization of our businesses will be a pillar in our new medium-term businessplan. The KPI has been set to overseas net sales ratio, with a target value of 15% or more.
We will make active use of the expertise the Kyokuyo Group has cultivated over the decadeson the global stage.
(4) Emphasizing asset efficiency
The KPI for asset efficiency has been set to ROIC (return on invested capital), with a target
value of 6% or more. We will actively invest in growth areas that will expand our businessscale, strengthen our high-profit structure, and promote globalization, while simultaneously
making efficient use of our current assets, and fully examining the efficiency of our investedcapital.
(5) Enhancing shareholder returns
We have set DOE (divided on equity ratio) as a KPI, with a target value of 3% or more, toensure stable and substantial dividends to shareholders. We will pay dividends that are linked
to enhancement of our equity capital through the accumulation of stable profits, incorporating
into our perspective not just profit, but return on shareholder equity.

END7