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Kushiro Vice President Appointed As New Maruha Nichiro HD's President

February 2, 2010

Maruha Nichiro Holdings announced its decision to appoint Representative Director/Vice President Toshio Kushiro as a new president as of April 1. President Igarashi will become a board chairperson without a representation right.

Mr. Kushiro was born in Shimane Prefecture on September 3, 1947. After graduating from Chuo University's Faculty of Law, he started working for Taiyo Gyogyo in 1971. He held the title of Cold Storage Department Director for five years from 1997; however, he focused mainly on the fields of human resources and labor and was appointed as Human Resources Director in 2002. He then became a board member in 2003, followed by the title of Executive Managing Director in 2006. He was named as Maruha Nichiro Holdings Managing Director in April 2008. He has been Executive Director/Vice President since April 2009.

It is the second year of the three-year medium term management plan "Double Wave 21" this year; Mr. Kushiro has been focusing on the acceleration of a synergy effect. He also has aggressively executed plant reorganization by saying; "Waste is in other words 'a mountain of treasure.'" With regard to the current goal of the group, the operating proceeds of \20 billion, he states flatly: "this number isn't beyond our reach."

On the other hand, Managing Director/Corporate Officer and Maruha Nichiro Suisan President Shigeru Ito and Maruha Nichiro Foods President Michiro Sakai will be promoted to Representative Director/Vice President.

Mr. Ito was born in Yamaguchi Prefecture on November 11, 1949. He graduated from Doshisha University. He joined Taiyo Gyogyo (current Maruha Nichiro Suisan) in 1972. He experienced a wide range of titles, fisheries business department 3 director, member of the Board, managing director, Maruha Nichiro Headquarters (current Maruha Nichiro Holdings) director, and Maruha executive director. He has been Maruha Nichiro Suisan President since April 2008.

Mr. Sakai was born in Miyagi Prefecture on October 1, 1948. After graduating from Tohoku Gakuin Univ., he started working for Nichiro Gyogyo (current Maruha Nichiro Foods). After holding such titles as Sapporo Office director, processed foods department director, he became a member of the Board in 2001. He has been Maruha Nichiro Foods President since April 2008.

The original article was published on February 2, 2010 and was translated by Kiyo Hayasaka.

Maruha Nichiro's 3Q Indicates Continuing Struggle of Seafood Segment

February 2, 2010

Maruha Nichiro Holdings announced its financial report on the third quarter (April - December 2009): sales ended in \638.2 billion, down 9.8 percent from the same period last year; operating profit was \10.9 billion with a decline of 35.8 percent; ordinary earnings came to \8.622 million, or a 6.1 percent drop; and the third quarter net income finished in \4.301 billion, which was a net deficit of \281 million at the corresponding period last year.

The seafood segment registered the sales of \405.5 billion, down 11.7 percent from the same time last year, and the operating earnings of \1.564 billion, a decrease of 85.5 percent.

The Fisheries and Aquaculture Unit was forced to deal with slumping hauls and plunges in fish prices in purse seine fisheries, and decreasing unit prices in aquaculture operations. The North America Operation Unit also marked declines in sales and profit, resulting from increases in lower grade surimi due to smaller sizes of a raw material, pollack; decreased filet production; and the tumbling European and American markets. Likewise, the Marine Products Tradings Unit reported revenue and profit drops because of plummeting retail prices caused by a consumer spending freeze, slumping sales of high-end foodstuffs, as well as prioritized sales of low-priced products. The Marine Products Wholesaling Unit ended with shrinking sales and earnings as a result of decreases in transaction quantities and falling fish prices. On the other hand, the Strategic Sales Unit experienced a drop in revenue owing to weakening consumption; however, profits were recorded thanks to cost reductions and lower material costs.

The Food Operations registered the sales of \212.2 billion, down 6.3 percent, and the operating earnings of 10.8 billion, up 42 percent. A consumer spending freeze contributed to slumping sales; nonetheless, cheaper material prices and cost cutbacks improved profits.

The Frozen Foods Business Unit enjoyed favorable sales in products domestically manufactured and new products, i.e. "Akebono Hana-chowmein," released in spring 2009. The Processed Foods Business Unit took on the improvement of its profit structure with cost reduction practices, such as reorganizing main production sites and consolidating items. A functional, health-oriented jelly product "Jelly de Zero" exhibited favorable sales; yet fish sausage and chikuwa were faced with tough pricing wars, resulting in a revenue decline and product increase in this unit as a whole. The Meat and Products Business Unit reported drops both in revenue and earnings, attributed by struggling meat consumption and a depressed market trend stemmed from excess domestic inventory. The Foods and Fine Chemical Unit focused on the sales expansion of new condiment products and witnessed positive imports of freeze-dry products and health foods, leading to rises in revenue and profit.

The Storage/Logistics Unit, despite a trend of a dull goods flow, managed to secure warehousing volume similar to last year by concentrating on livestock products and frozen foods. Additionally, as a consequence of proactive practices towards peripheral business operations, such as transportation and customs clearing, this business unit pulled off good results with the sales of \11.6 billion, down 0.4 percent, and the operating proceeds of \1.2 billion, up 2.2 percent.

The original article was published on February 2, 2010 and was translated by Kiyo Hayasaka.

Kyokuyo's 3Q: All Business Segments Mark Declined Profits

February 2, 2010

Kyokuyo's third quarter business report for the fiscal year ending in March 2010 indicated a decline in revenues by all four segments, except Processed Food's, which increased revenue. Drops in earnings were reported by Marine Products Purchasing, Processed Food, Logistics, and Tuna operations. Consolidated sales were \113 billion, down 2.2 percent from the previous year; operating proceeds ended in \1.918 billion, or a decrease of 34.9 percent; ordinary earnings finished in \2.267 billion, down 23.8 percent; and net income for the third quarter came to \994 million with a drop of 38.5 percent (in part previously reported)

The segment of Marine Products Purchasing witnessed sales growth especially in shrimp and crab due to spending encouraged by decreasing prices at the year-end sales competition, finishing in transaction quantities exceeding the last year's figures. However, the overall slowdown in the market caused both sales and profits to fall short of the last year's results.

In the Processed Food segment, frozen cooked marine foods expanded sales of sushi toppings and products requiring heating in the domestic market, and expanded sales of sushi-related foodstuffs produced by KUE in Thailand took place in the European and American markets. Cooked frozen foods experienced delayed sales recovery of processed livestock products, whose transaction quantities were affected by undesirable circumstances of materials, and continuously struggled because of tumbling sales of high-priced products. Room temperature foods suffered plunges in retail prices; however, focus was put on sales expansion of mainly canned seafood products. A consolidated subsidiary, Jokki (seafood delicacy finger food maker), put energy into sales channel growth collaboratively with its existing business partner, Shinko, ending in securing proceeds.

Cold Warehouse Operation in Logistics tried to strengthen marketing and streamline business operations, leading to smooth business practices; however, refrigerated cargo business was greatly affected by a global market downturn and foreign exchange.

Processing and Whole Selling Business in the segment of Tuna Operations contributed to sales and profit by improving overseas purchasing channel, streamlining its production structure, and aggressively expanding sales channel in the dining sector. Far seas purse seine fisheries, which include the state of the art vessel "Dainana Wakaba-Maru" freshly completed last October, smoothly operate out of the Midwestern Pacific. Yet, nose-diving bonito prices were a factor for sales and earnings to go below the last year's performance. Bluefin Aquaculture Business began shipping and selling the fish last October; however, sales are lower than the original prediction.

The original article was published on February 2, 2010 and was translated by Kiyo Hayasaka.

Seafood Trader Kyokuyo Indicates 34% Decline in Operating Profit for 3Q

February 1, 2010

Kyokuyo announced its business results for the third quarter (April to December 2009): sales ended in \113 billion with a 2.2 percent drop from the same period last year; operating earnings came to \1.918 billion, down 34.9 percent; ordinary profit declined 23.8 percent to \2.267 billion; and net income resulted in \994 million, a decrease of 38.5 percent.

The Marine Products Purchasing Division increased sales quantities, especially crab, at the year-end sales competition; however, the slumping market trend caused sales and profit to fall short of the previous year's results.

The forecast of the full business year ending March 2010 is as follows: sales \150 billion; operating profit \2.7 billion; ordinary earnings \3 billion; and net income \1.5 billion.

The original article was published on February 1, 2010 and was translated by Kiyo Hayasaka.

Nippon Suisan Bolsters Up Cod Roe/Salted Cod Roe Product Line

February 1, 2010

Nippon Suisan released 63 new products, including 26 renewals, for spring and summer. The concepts of product development were based on 1) response to consumer tendency to dine in; 2) suggestions with new angles; and 3) utilization of access to resources. Especially, making the most of the "Global Links," ability to access marine resources, cod roe (tarako)/salted cod roe (mentaiko) product line was bolstered up. Based on consumer needs for health and convenience, "Tarako 30% Sodium Cut" and "Iroiro Tsukaeru Mentaiko Sauce" (mentaiko sauce for various purposes) are proposed for the fish section.

The variation of products of South American "hoki," whose aggressive product development began last year, was increased. "Hoki," known for its highest flavor property among white fish, offers a renewed product of "Chikyu no Gochiso: Shiromi Sakana Karaage" (earth delicacy: fried white fish) for the frozen isle and "Shiromi Zakana no Tatsutaage" (fried white fish) for processional use.

In response to the consumer tendency to eat in, a product that offers the taste of a prestigious restaurant at home, "Mojiko Hotel Kanshu Omuyaki Curry" (curry omelet supervised by Mojiko Hotel) is suggested for the cold foods section. In the category of room temperature foods, authentic Chinese "Fukahire Soup" (shark fin soup) that contains 3,000mg of collagen is put for sale.

For the concept of "suggestions with new angles," "Curry Oden Soup" (supervised by Umibun-Nabebun), and rich, spicy "Arabiki Shokkan Fish Sausage" are presented for the deli corner; "Sanma Soboro" (saury rousong) made from saury harvested in Hokkaido in room temperature foods is offered.

What may attract a lot of attention is microwaveable frozen food, "Yaki Pudding" (baked pudding), which has two different flavors, almond and apple. In the group of room temperature foods, "Morioka Reimen-yasan no Makanai-meshi (bibimbap flavor)" supervised by a well-known cold noodle restaurant in Morioka "Pyonpyon-sya" is presented.

In regards to canned goods, a "Sakana wa Umaizo!" (fish is delicious!) series has the following new products: "Saba Mizuni" (mackerel cooked in water), "Saba Misoni" (mackerel cooked with miso), and "Saba Shoyu-aji" (soy sauce flavored mackerel), which all use mackerel only landed at the Port of Hachinohe.

The original article was published on February 1, 2010 and was translated by Kiyo Hayasaka.

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