Strengthening the Meat Value Chain Through a Capital and Business Alliance with Mitsui & Co.

「MITSUI & CO.,LTD. is an other affiliated company that owns 16.380% of the voting rights in the Company, including 0.004% held indirectly. We have entered into a capital and business alliance with the company to strengthen cooperation in the meat value chain, from raw-material procurement through processing and sales, in the domestic and overseas meat and processed-meat businesses, with the aim of further increasing the corporate value of both companies.」

「We have confirmed that our growth strategy aligns with MITSUI & CO.,LTD.'s medium- to long-term livestock business strategy, and that strengthening the relationship will generate significant synergies for both parties. We aim to further strengthen cooperation across the meat value chain, from raw material procurement through processing and sales, in the domestic and overseas meat and processed-meat businesses, thereby increasing the corporate value of both companies.」

「December 2021: 星徳真食品（上海）有限公司 established」

「Specifically, as part of efforts to strengthen the overseas business, we established a food sales company through a three-company joint venture with MITSUI & CO.,LTD. and a local Chinese partner, and began business operations in October 2019.」

「Specifically, as part of efforts to strengthen the overseas business, we established a food sales company through a three-company joint venture with MITSUI & CO.,LTD. and a local Chinese partner, and began operations in October this year.」

「Specifically, as part of efforts to strengthen the overseas business, we decided to establish a food sales company focused on meat through a three-company joint venture with MITSUI & CO.,LTD. and a local Chinese partner.」

「In particular, the expansion of Starzen Company Limited’s business model in Southeast Asia is positioned as a highly important initiative.」

「The overseas business focused particularly on exports of domestically produced Wagyu, with both volumes handled and net sales increasing substantially year on year. The company continues to work in coordination on exports to Taiwan in cooperation with MITSUI & CO.,LTD. and sales through ADiRECT Singapore Pte. Ltd., with which it signed a capital and business alliance agreement in December last year.」

「The overseas business expanded significantly, with a particular focus on exports of domestic Wagyu, including expansion of exports to Taiwan as a new destination through cooperation with MITSUI & CO.,LTD. and an investment in a local Singapore subsidiary.」

「At a meeting of the board of directors held on 12 May 2016, our company resolved to enter into a capital and business alliance with MITSUI & CO.,LTD. and to issue new shares to, and dispose of treasury shares through a private placement to, MITSUI & CO.,LTD. (collectively, the “Private Placement”). We executed the capital and business alliance agreement with MITSUI & CO.,LTD. on the same date. The Private Placement was completed on 31 May 2016.」

「We determined that this capital and business alliance would enhance the corporate value of both companies after confirming that our growth strategy and MITSUI & CO.,LTD.’s medium- to long-term livestock business strategy were aligned and that strengthening the relationship would generate significant synergies for both parties. The alliance is intended to strengthen cooperation across the meat value chain, from raw-material procurement through processing and sales in the meat and processed-meat businesses in Japan and overseas. Specifically, we expect to strengthen our procurement base and develop new products by using MITSUI & CO.,LTD.’s overseas network as a partner in strengthening our overseas business; jointly develop branded meat and improve productivity through cooperation in the feed business upstream of the meat business; and accelerate the expansion of our share of meat sales through greater efficiency achieved by cooperation in indirect functions such as logistics and IT. After considering these factors comprehensively, we determined that this private placement would enhance our corporate value.」