Strategic Investment in Growth Areas

「The Company will continue making active growth investments and contribute to maximizing the corporate value of the Group.」

「As financial targets for the fiscal year ending March 2028, the company has set operating profit of ¥40 billion, ROIC of 5%, growth investment of at least ¥140 billion, a dividend payout ratio of at least 30% with progressive dividends, and a PBR of at least 1x. It will work to improve profitability and capital efficiency, make aggressive growth investments and maintain an appropriate financial balance.」

「The increase in property, plant and equipment and intangible assets was ¥28,973 million.」

「This included ¥11,029 million in spending on the acquisition of property, plant and equipment, including the construction of new vessels in the Marine Resources business, and ¥6,765 million in spending on the acquisition of shares in subsidiaries in the Food Ingredients Distribution business.」

「In the Marine Resources business, Austral Fisheries Pty Ltd. made ¥8,392 million in capital investments to strengthen its overseas fishing and supply structure, including the construction of a longline vessel.」

「Net cash provided by investing activities was ¥2,975 million, compared with ¥5,736 million used in the same period of the previous year. This was primarily due to proceeds from the sale and redemption of investment securities. Proceeds of ¥8,669 million from the sale and redemption of investment securities, mainly cross-shareholdings, were recorded, along with ¥8,626 million in spending on the acquisition of property, plant and equipment, including the construction of new vessels in the Marine Resources business.」

「In the Marine Resources business, Westward Seafoods, Inc. made ¥18,651 million in capital investments to strengthen its overseas fishing and supply structure, including the acquisition of a pollock processing facility.」

「In Europe, revenue and profit increased due to procurement and sales to meet growing demand for seafood, the acquisition of a UK seafood processing and sales company, and the consolidation of a Dutch food wholesaler through an additional equity investment. In Asia, revenue and profit increased in Thailand's pet-food business due to strong sales to North America and the stronger US dollar against the baht, resulting in higher revenue and profit for the group overall.」

「Spending included ¥10,086 million on the acquisition of property, plant and equipment, mainly North American fishing vessels in the Marine Resources business and production facilities in the Processed Foods business, and ¥8,475 million on the acquisition of intangible assets, including fishing permit rights in North America in the Marine Resources business.」

「In the Overseas unit, revenue and profit increased in North America as higher production efficiency and newly acquired Alaska pollock resources contributed to increased production, while selling prices rose amid a firm market.」

「Resource allocation based on the business portfolio and strategic investment in growth-driver areas」

「At a board meeting held on 20 December 2021, the company resolved that its consolidated subsidiaries Maruha Capital Investment, Inc. (MCII) and Westward Seafoods, Inc. (WSI) would acquire assets from Icicle Seafoods, Inc. for pollock operations, and the assets were acquired during January 2022.」

「Net cash used in investing activities was ¥6,919 million, compared with ¥13,574 million used in the same period of the previous second quarter. This was primarily due to ¥8,156 million in spending on the acquisition of property, plant and equipment, mainly production facilities in the Logistics and Processing businesses, partly offset by ¥2,377 million in proceeds from the sale of property, plant and equipment and other items.」

「In Europe, revenue and profit increased due to the consolidation of a sales company through an additional equity investment and higher sales driven by post-pandemic demand expectations. In Asia, revenue and profit increased on the strong performance of the pet-food business in Thailand and the acquisition of a processing and sales company in Vietnam.」

「We made total capital expenditures of ¥25,356 million, mainly in the Processing and Logistics businesses.」

「Net cash used in investing activities was ¥13,574 million, compared with ¥11,399 million used in the same period of the previous second quarter. This primarily reflected ¥14,313 million in capital expenditures for the acquisition of property, plant and equipment, mainly production facilities in the Processing business, distribution centers in the Logistics business and fishing vessels in the Overseas business, together with ¥881 million in interest and dividends received and other items.」

「To achieve earnings growth, we will invest in the fisheries value chain in Japan and overseas, actively invest in the frozen-food business, and make upfront investments in aquaculture, care foods and chemical products as medium- to long-term growth areas.」

「We will continue to drive initiatives such as collaboration within and between units and strategic investment in growth areas in a timely manner to generate growth for the group.」

「We will drive initiatives such as collaboration within and between units and strategic investment in growth areas in a timely manner to generate growth for the group.」