“People's Interest in Food is Rapidly Growing in Asia” （Cooked foods business of Kanematu Group ）

～Richer diets for Asian people － Proposal of “foods to enjoy” ～

May 15, 2015

1 Cooked food market

Mass retailer 13 trillion yen

Cooked food market CVS 9 trillion yen (including sales of goods other than food products) 9 trillion yen

23 trillion yen

2 History of the Cooked Food Business of Kanematsu Group and Movements in the food industry sector

1993 Establishment of Dalian TianTianLi Food Co., Ltd. (Joint venture）in Dawn The market for cooked food expanded. ⇒ Established bases for the production and import to of frozen Chinese dim sums. Acquired Nippon Shokuhin in Japan. Exploitation 2000 Established a system to offer menu development and production functions targeted at the home meal replacement market. （Period of rapid growth in the home meal replacement market. Example: Significant 2005 growth of Origin .）

Expansion （Pesticide contamination of Chinese-made frozen dumplings occurred. 2008 ⇒ The need for safe, secure food generated a trend of returning to food processing in Japan.）

Strengthened the functions of differentiation between food products 2009 offered to convenience stores and those offered to mass merchandise outlets as well as menu proposal functions. Ripeness Established process patents and strengthened the enclosure of convenience stores and mass merchandise outlets. （The domestic market was on a gradual growth path.)

Supporting our business partners who plan to make inroads into the Entry into 2012～ Asian markets. Asian Invited CoCo Ichibanya to enter the Indonesian market. markets Established a locally incorporated joint venture with Tarami. Established Kanemory Food Service to offer cooked food locally.

3 Kanematsu Group approach：3 strong points

• Trial production in the Group’s own test kitchens • Use of the production lines in factories in Japan and overseas

Food solutions business to handle the entire process from development to menu proposal

Differentiation with process patents, Production base in abroad expertise, etc.

• China • Functional seasoning liquid for sticky rice • • Long-life eggs

4 Japanese-Affiliated Companies’ Entry into Asian Markets

＜Mature Japanese Market＞ For the purpose of taking advantage of the growing Asian food market, Japanese-affiliated convenience store chains, mass merchandise outlets and chains are making inroads into the emerging Asian countries one after another.

CVS : 5 Japanese-affiliated companies 36,000

Restaurants 2,000

5 Food processing business in Indonesia

Investment Investment Central kitchen of the group joint venture (production factory) Raw materials

Production technology Marketing PT. Kanemory Food Expertise in quality Service control

In the rapidly growing markets in Indonesia, we will develop, produce and sell processed foods in cooperation with the Cimory Group.

6 Restaurant Chain Operating Business in Indonesia

Investment Franchise agreement Investment

Raw materials Joint venture franchisee

Production Marketing

Started since 2013 Aiming to increase the number of stores in the near future.

CoCo ichibanya (Indonesia) This restaurant chain has proven to be popular among a wide range of user segments through offering Muslim menus.

7 The Business of the Production and Marketing of Fruit Jelly in Indonesia

Investing company KEONG

Investment Investment

Indonesia JV

• Production technology Raw materials guidance • Marketing

On April 15, 2015, the jelly products were placed in the storefront of a leading convenience store operator for the first time. They are now being offered at an increasing number of stores. PT. Dunia Express Transindo (Dunex) Logistics support

8 Future strategy

Phase 3

 Make inroads into other Muslim markets  Enter the halal food market, with a population of 1.9 billion and a market size of 30 trillion yen

Phase 2

 Horizontal development into other Asian countries  Capture the interest of 4 billion people in food and offer products that are “Made by Japan”

Phase 1  Change from the traditional tendency of thinking about trading company’s business to the notion of producers  Establish a delicatessen production factory in Indonesia  Blend in with the local culture

9