Overview of Strategies Strengthening of Operating Base: (1) Concentration on Core Products 4 Each of our core products (salad condimen

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1 Mid-term Business Plan and Targets of Business Segments Basic Policy Strengthen Our Operating Base and Challenge New Developments The basic policy of the Mid-term Business Plan can be illustrated as a two-storied building. The foundation of the building is the promotion of development of human resources and improvement of the quality of the Group and the first floor is the strengthening of operating base. In order to strengthen its operating base, Kewpie will work to build a strong standing that is not easily impacted by raw material costs, by focusing on the two measures of 1) concentration on core products and 2) improvement of cost of the Group. The second floor is challenge to new developments, where Kewpie works to increase sales and profits, supported by the foundation and the first floor. We will aim to expand the market in the two directions of 1) cultivation of the domestic market and 2) expansion in East Asia. Moreover, Kewpie will endeavor to realize a strong constitution and corporate growth through implementation of the full-fledged execution of food service strategy that creates new demand by combining its technologies, products, information and using the Group s marketing channels. Challenge to New Developments 1 Cultivation of the Domestic Market 2 Expansion in East Asia Full-Fledged Execution of Food Service Strategy Strengthening of Operating Base 1 Concentration on Core Products 2 Improvement of Cost Structure of the Group Promotion of Development of Human Resources and Improvement of the Quality of the Group

2 Overview of Strategies Strengthening of Operating Base: (1) Concentration on Core Products 4 Each of our core products (salad condiments, egg products, salads and cut vegetables, and hyaluronic acid) is an independent and strong business category. Combining these core products salad condiments combined with salads and cut vegetables, for example will generate synergy and help further expand the market. 2 Strengthening of Operating Base: (2) Improvement of Cost Structure of the Group In order to strengthen the operating base, it is essential to construct a cost structure that can endure the changes in the market environment. Kewpie will endeavor to realize the improvement of the cost structure of the Group in a more extensive way, including optimum production reallocation and reorganization of Group companies, by elaborating on cooperation throughout the Group beyond the walls of divisions and companies. 1 Challenge to New Developments: (1) Cultivation of the Domestic Market The Kewpie Group provides products for the home, ready-made foods and restaurant markets. As such, we believe that the Group can synergistically increase the value of the technologies and products in which it excels under the philosophy of technologies x products x information + marketing channels. Kewpie will take advantage of this strength to cultivate the domestic market more widely and deeply by increasing the opportunities both in terms of quality and volume for the Kewpie Group to get involved in every food scene. 2 Challenge to New Developments: (2) Expansion in East Asia With the acceleration of expansion in the China food service market, and centering in Thailand, Kewpie will aim to continue to expand in neighboring countries. At the same time, we open new branch companies in Malaysia and Vietnam as new bases in East Asia and to launch our businesses there. Cultivating latent demands through fusing the technologies, products, information and marketing channels of the Group Condiments and Processed Foods Business Health Function Products Business Proliferate into Market Effectively utilize the product route fl ow of perishables and prepared foods to mass-merchandise stores Expand product supply to processed foods and bakery categories by making use of the Group s marketing channels Expand our original liquid foods and unique supplementary foods to liquid foods Expand Product Categories 3 Form a new sauce world as the third pillar following mayonnaise and dressings Apply micro emulsifi cation technology to pharmaceutical use Promote sales through full-fledged execution of the food service strategy Egg Products Business Accelerate the marketing of chilled egg products Start expansion of sales at mass-merchandise stores Expand into a new egg area Challenge adding value to egg whites Push business through reinforcing R&D and technological capabilities Salad and Prepared Foods Business Develop new marketing channels into hospitals, medical facilities, etc. Challenge the creation of new categories, such as prepared foods to be cooked with microwave ovens Promote products that utilize the Group s resources in vegetable, fruit and prepared foods corners Distribution System Business Expand handling of imported cargo

3 Business Segment Strategies and Performance Targets Condiments and Processed Foods Business Creation of a unique variety of recipes by promotion of products and marketing activities that integrate the Group s strengths % 8.4% +.1% Health Function Products Business Provision of our proprietary products and services with the value of health functions to contribute to society % 9.5% +1.4% Egg Products Business Enhancement of competitiveness in the existing area and the establishment of an egg world by expanding new areas % 5.3% +.9% Salad and Prepared Foods Business Promotion of the development of new markets through the best use of our nationwide network % 2.8% +.2% Distribution System Business Promotion of quality improvement, and strengthening the functions of physical distribution % 2.8% +.2%

4 Condiments and Processed Foods Business Respond to Customer Health and Lifestyle Changes ( 212 ) (, ) ,735 ( billion) We have a variety of product lineups such as salad condiments which boast the top share in the market, jams marketed under the Aohata brand and pasta sauces. Our business develops a wide range of products for household to commercial use. Among salad condiments, the market for health oriented mayonnaise-type is expanding in particular. We aim to expand the market share even further centering on Kewpie Half which was renewed this spring. We are making efforts to further emphasize the group cooperative sales style by promoting the Effective Utilization of the Product Route Flow at mass retailers, and working to expand our key products as well as new concept products such as Gu-no Sauce ( 14.4 billion)

5 Health Function Products Business Forever Providing the Joy of Eating to Many ( 212 ) (, ) The Healthcare Business provides baby food free of 25 specified allergy provoking ingredients and Japan s first nursing care food (universal design food) as well as medical foods suitable for patients with kidney diseases and diabetes, through which Kewpie extends the joy of eating to many people. The Fine Chemical Products Business, which centers on medical materials, has large growth in the production of hyaluronic acid. Kewpie is the only manufacturer in Japan that applies two manufacturing methods of cock s comb extraction and microbial fermentation for producing hyaluronic acid. We are producing hyaluronic acid for cosmetic and dietary supplement for both in and outside of Japan and aiming to become on the best hyaluronic acid producer in the world ( 18.5 billion) ( 1.5 billion)

6 Egg Products Business Enhancing Long Fostered Technology and Continueing as Eggs Expert ( 212 ) (, ) ( 85.7 billion) Kewpie is an expert of eggs, which are the main ingredient of mayonnaise. Since we handle about 1% (25, tons) of the eggs in Japan, we have been pursuing the full use of eggs without any waste. The mainstay products of this segment are egg material products such as liquid, frozen and dried eggs provided to food manufacturers that make confectionery, breads, kamaboko (steamed fi sh cakes), chikuwa (tubular fi sh cakes), hams, sausages and other foods. Kewpie also uses egg shells as calcium-reinforcing food products and thoroughly uses even membranes attached to egg shells without any waste. Kewpie Egg Corporation s Miyoshi factory in Saitama Prefecture started operation in March and is maximizing their effi ciency under the concept of a futuristic factory having both strength and gentleness. This will be used as a foothold for further business growth and as a model for enhancing cost competitiveness and technology improvement ( 3.8 billion)

7 Salad and Prepared Foods Business Making Ready-Made Foods Easier and Better ( 212 ) (, ) We are expanding salads and prepared foods to the ready-made foods market and packaged salads offered nationwide under the Salad Club brand name are sold at over 1, massmerchandise stores. We are delivering products that allow customers to enjoy safe and reliable ready-made foods to an ever-expanding market, backed by the increase in number of working women and single-person households. We are putting efforts into developing new products and improving trial and repeat-use rates using the comprehensive strengths of the Kewpie Group with its unique technologies and products ( 85.8 billion) ( 2.2 billion)

8 Distribution System Business Keeping Safety and Security with Leading Foodstuff Distribution in Japan ( 212 ) (, ) ,171 ( billion) K.R.S. Corporation (listed on the Tokyo Stock Exchange 1st section) is the top company by sales and technology in the domestic foodstuff distribution service area. It operates nationwide storage systems in the four temperature ranges of room, fixed, refrigerated and freezing temperatures and realizes efficient distribution while maintaining the quality and freshness of the food. Currently, K.R.S. is entrusted with storage and transportation by approximately 1,4 clients, and more than 8% of its sales come from outside of the Kewpie Group. Dedicated to improving vehicle efficiency, flexible vehicles that can handle the three temperature ranges of freezing, chilled and room temperature were introduced in 21. K.R.S. will continue to implement thorough provision of high quality physical distribution services that guard safety and security, which are the most important issues in foodstuff distribution ( 3. billion)

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