Topics

IR Topics for the Year Ended March 31, 2013

Nichimo supplies high quality hoki and southern blue whiting surimi from Argentina
<Food Business>

As part of our efforts to secure stable supply of quality surimi products and better serve our customers and surimi users in Japan, Nichimo acquired shares of San Arawa S.A., a leading surimi and fillet producer in the Argentine Republic, on February 28, 2013 to hold majority shares of the company.

Nichimo and San Arawa, our subsidiary now, have years of good mutual business relationship. Nichimo has been purchasing San Arawa's high quality hoki and southern blue whiting surimi products and supplying these differentiated high-value products to kneaded products processors and other surimi users in Japan.

In May 2012, their hoki fisheries was certified as sustainable by MSC or Marine Stewardship Council based in London, the international charity to encourage sustainable fishing practices. San Arawa's MSC-certified hoki products, especially their fillet products, are highly recognized and valued as sustainable and traceable as well as of high quality in the European markets. Their good reputation and established sales channel in the markets will help Nichimo promote and develop our Group-wide food business further in the markets.

Nichimo Mariculture supplies healthy live fish to a new aquarium facility opened at Hakkeijima Sea Paradise
<Marine Business>

Hakkeijima Sea Paradise, a popular amusement complex with aquariums and located along the seaside of Yokohama, opened another new aquarium called “UMI Farm” in March 2013.

This new facility is designed to offer hands-on experiences for children and families to learn about the sea and its habitants as well as to encourage them to have good and healthy diet and eating habits. UMI Farm has a pool of live fish for visitors to touch them and another pool where visitors can try to fish them and have their catch cooked and served to them. Nichimo Mariculture Co., Ltd. supplies live, healthy silver salmon and jack mackerel to UMI Farm for these programs.

Nichimo Mariculture, our subsidiary, provides fish farming business and fish farmers with a comprehensive range of services, materials and supplies including juvenile fish and feed. Hakkeijima Sea Paradise has been one of our customer aquariums in Japan who count on our reliable supply of fresh feed fish. Fresh live silver salmon and jack mackerel are now added for the visitors of their unique marine park.

We are proud to be a partner of Hakkeijima Sea Paradise and many other aquariums to support their fun and education programs.

Nichimo delivered high concentration wastewater treatment system to major supermarket chains' central factory
<Machinery Business>

As we expand our services to design, engineer and supply a comprehensive range of food processing facilities, systems and equipment, our machinery division recently delivered a high concentration wastewater treatment system to a major supermarket chains' central food processing factory.

At this central factory operated under strict health and hygiene control programs, the leading Japanese supermarket chains and our customer processes various ready-to-eat products to be sold at their retail outlets. The factory needs to treat wastewater that often has high concentrations of residual oil, fat and other organic substances derived from their food processing operations. Treatment of such high concentration wastewater used to require workers to apply intricate techniques and skills acquired from their experiences. The factory introduced this high-performance system to improve their wastewater treatment further.

It is a system to treat high concentration wastewater with aerobic bacteria, and has a water tank that allows bacteria to grow and multiply and an air feeder that generates and feeds small air bubbles into the tank. The air feeder supplies sufficient oxygen for aerobic bacteria to multiply well and to have high concentration wastewater treated effectively. The system is smaller in size than conventional facilities because of its high water treatment efficiency and thus requires a smaller installation area and a shorter construction time.

ImmuBalance(R), our proprietary fermented soy product and an anti-allergy ingredient, is certified as high quality ingredient
<Biotics Business>

ImmuBalance(R), our proprietary fermented soy product and an anti-allergy ingredient, is certified as a high quality ingredient or HQI by Japan Health Food and Supplement Information Center.

Our HQI product is made by fermenting defatted soybean with our patented koji mold fermentation technology. It is a natural ingredient with effective anti-allergy properties and no adverse side-effects.

ImmuBalance(R) is manufactured by our subsidiary, Nichimo Biotics Co., Ltd. and supplied to a number of health food supplement manufacturers. Nichimo Biotics also manufactures and sells its own brand supplement products including “ImmuBalance+GABA”. Our high quality, anti-allergy natural supplement products receive a very good reputation from users.

Information and review of ImmuBalance(R) is available at Natural Medicines Comprehensive Database. The database provides scientific information on natural medicines and is recognized by health governments and relevant authorities of many countries including the U.S. Food and Drug Administration (FDA) and the National Institutes of Health (NIH).