Proactive Capital Investment in Growth Categories

「During the fiscal year, the Group made total capital investments of ¥46,693 million, primarily for new manufacturing equipment for the overseas instant noodle business. As of the end of the fiscal year, the planned investment amount for newly approved material construction and renovation projects was ¥20,021 million. At the Yaizu Plant, investment of ¥20,542 million is planned for frozen noodle manufacturing equipment, with construction beginning in June 2026 and completion scheduled for March 2031.」

「The company plans to invest approximately ¥130,000 million or more in capital expenditures during the three-year period of its medium-term management plan. 1. Growth investments: expansion of the California plant (overseas instant noodle business), construction of a new plant in Mexico (overseas instant noodle business), and expansion of the freeze-dried food plant (processed foods business). 2. Efficiency investments: upgrades to ingredient-processing equipment and reorganization of instant noodle plants (domestic instant noodle business), and expansion of frozen foods and reorganization of fresh noodle plants (chilled foods business).」

「During the fiscal year, the Group made total capital investments of ¥19,700 million, primarily for new manufacturing equipment for the overseas instant noodle business. The overseas instant noodle business made capital investments of ¥7,447 million, primarily for new cup noodle and other manufacturing equipment at マルチャン, INC.」

「The company　Head office and other locations (Minato-ku, Tokyo, and elsewhere)　Domestic instant noodle business　Chilled foods business　Processed foods business　System integration　¥8,800 million　—　Internal funds　February 2024　July 2026 マルチャン, INC.　Laguna Plant (California, U.S.)　Overseas instant noodle business　Cup noodle and other manufacturing equipment　US$217,552 thousand　US$4,461 thousand　Internal funds　July 2023　March 2027　67% increase in production capacity」

「マルチャン, INC.　Laguna Plant (California, U.S.)　Overseas instant noodle business　Cup noodle and other manufacturing equipment　US$217,552 thousand　US$73 thousand　Internal funds　July 2023　March 2027　67% increase in production capacity」

「マルチャン, INC.　Laguna Plant (California, U.S.)　Overseas instant noodle business　Cup noodle and other manufacturing equipment　US$217,552 thousand　—　Internal funds　July 2023　March 2027　67% increase in production capacity」

「八戸東洋㈱　New Freeze-Dried Plant (provisional name)　(Hachinohe, Aomori Prefecture)　Processed foods business　Freeze-dried product production equipment　5,566　－　Internal funds　June 2023　July 2024　Production capacity up 25%」

「As of the end of the consolidated fiscal year, the planned investment in newly decided construction, renovations and other projects involving important facilities was ¥30,612 million. The required funds are scheduled to be provided from internal funds.」

「Production equipment for cup noodles and other products at マルチャンテキサス, INC.　¥5,135 million　Started March 2020　Scheduled completion May 2021　Production capacity up 19% (Note) 1. The production equipment for cup noodles and other products at マルチャンテキサス, INC. began operating in May 2021.」

「In the refrigerated logistics business, the movement of stored goods was sluggish due to the spread of COVID-19 and unfavorable weather, but the business benefited from the operating contribution of the Ishikari Shinko Logistics Center, completed in May 2020, as well as steady handling of customs clearance, transportation and other services. As a result, revenue was ¥10,865 million, up 5.2% year on year, while segment profit was ¥640 million, down 3.7%, due to higher depreciation and personnel expenses associated with the operation of the New Refrigerated Warehouse.」

「In the refrigerated logistics business, the movement of goods, particularly foodservice products, was sluggish due to the spread of COVID-19, but the business maintained high inventory levels. In addition, the start of operations at the Ishikari Shinko Logistics Center, completed in May 2020, and steady handling of customs clearance, transportation and other services supported the business.」

「In the refrigerated logistics business, storage capacity increased when the Saitama-Sugito Logistics Center and Kobe Logistics Center began operating in January 2019. Handling of goods stored for new customers and ancillary services such as customs clearance and transportation also remained solid.」

「During the consolidated fiscal year, the group made total capital investments of ¥30,390 million, mainly for new refrigerated warehouses in the refrigerated logistics business. The processed foods business invested ¥6,746 million, mainly in the construction of a new manufacturing plant for a subsidiary, フクシマフーズ㈱. The refrigerated logistics business invested ¥13,166 million, mainly in new refrigerated warehouses for the company at the Kobe Logistics Center and for the subsidiary 埼北東洋㈱.」

「The New Comprehensive Research Institute (provisional name) in Tatebayashi, Gunma Prefecture, which had been planned as an important new facility at the end of the previous consolidated fiscal year, was completed as the Comprehensive Research Institute in August. Production equipment for cup noodles and other products at マルチャンテキサス, INC. in Texas, United States, began operating in July. New Hokkaido Refrigerated Warehouse (provisional name)　Refrigerated warehouse　7,136　321　Internal funds　August 2018　April 2020　Storage capacity 48 thousand tons」

「Virginia Plant (Virginia, United States)　Overseas instant noodle business　Production equipment for cup noodles and other products　3,239　－　Internal funds　September 2018　December 2019　(Note) Primarily for renewal and rationalization, with no material impact on production capacity.」

「In the processed foods business, sales of brown rice and sekihan in the retort cooked-rice category performed well, but revenue declined partly because temporary sales adjustments were implemented to maintain stable supply until the production capacity expansion was completed.」

「The introduction of freeze-dried products at convenience stores progressed smoothly. As a result, revenue was ¥5,041 million, up 2.8% year on year. Segment profit was ¥72 million, down 61.6% year on year, due to higher prices for raw rice and increased fixed costs associated with construction of the new plant, among other factors.」

「As of the end of the consolidated fiscal year, the planned investment in newly decided construction, renovations and other projects involving important facilities was ¥45,808 million. The required funds are scheduled to be provided from internal funds.」

「New Shinko Refrigerated Warehouse (provisional name) (Higashinada-ku, Kobe) Refrigerated logistics business Refrigerated warehouse 5,250 － Internal funds October 2017 January 2019 Storage capacity 30 thousand tons フクシマフーズ㈱ New Cooked-Rice Plant (provisional name) (Koori, Date District, Fukushima Prefecture) Processed foods business Cooked-rice production equipment 9,050 － Internal funds May 2017 June 2019 Production capacity Up 84% 甲府東洋㈱ New Freeze-Dried Plant (provisional name) (Chuo, Yamanashi Prefecture) Processed foods business Freeze-dried product production equipment 3,000 2 Internal funds March 2017 December 2017 Production capacity up 100%」

「We will restructure our production systems to maintain and strengthen competitiveness in Japan and overseas.」