Management Policy

1. Basic Policy on Management

The management philosophy of Toyo Suisan Kaisha, Ltd. is "to help people lead happier and more satisfying lives by providing better products and services to our customers," based on the principle of "customer-first." Our goal is to be a corporate group that is trusted because we provide “safe and delicious products” and “impeccable service” and are therefore supported by our customers. We recognize that in focusing on profitable growth and increasing corporate value by doing so, we will enrich the society, our shareholders, employees, and all other stakeholders.

2. Basic Policy on Distribution of Profit

Toyo Suisan Kaisha, Ltd. recognizes that improving the return on investment to all of our investors while also striving to increase corporate value by improving profitability and strengthening the business base, is an important element of management. Our basic policy on the distribution of dividends to investors is to distribute stable dividends while taking the operating results for the period into consideration. We have distributed an interim dividend since fiscal year ending March 2007, and will consider distributing quarterly dividends in the future. In regard to the maintenance of internal reserves, we will strengthen the corporate structure and invest in development to respond to rapidly evolving technology, changing customer needs, and other factors, and strive to increase corporate value.

3. Targeted Management Index

The Toyo Suisan Group views striving to increase consolidated ordinary income as the most important factor in establishing a solid financial base. We will be diligent in improving productivity and reducing costs through operational reform, developing high value-added products, and focusing on cash flow management.

4. Medium to Long-term Management Strategy and Issues Facing the Company

Future Outlook: While there have been some signs of economic recovery, the timing of a full rebound in consumer spending is unclear, and competition is expected to stiffen even more as consumers choose from among an increasing variety of products. Toyo Suisan Kaisha, Ltd. intends to tackle the following issues amid such conditions with the goal of ensuring future profitability and improving business efficiency.

  1. Ensuring product competitiveness:
    Focus on R&D to offer even better products to meet the changing needs of our customers while also ensuring the safety of our products.
  2. Securing sales in each business segment:
    Offer sales promotions better matched to customer needs by region and by product and actively engage in marketing activities.
  3. Reducing costs:
    Strive to reduce costs by implementing a broad range of operating improvements in addition to restructuring the production and distribution structure to make it more efficient through continuing to consolidate production locations.
  4. Strengthening the financial base:
    Strive to strengthen the financial base by working to reduce inventory and exercising strict discrimination in investment and lending.
  5. More rapid and efficient management:
    Strive to make management decisions more rapidly and efficiently by promoting the sharing of information in the group.
  6. Emphasis on employee education:
    Emphasize employee education from the perspective that our human resources embody our company, work to make authorities and responsibilities clear, and develop human resources capable of withstanding structural changes.
  7. Firm corporate ethics:
    Strive to actively establish corporate ethics through ensuring compliance while also working for a more active Board of Directors to achieve management transparency.

5. Matters Concerning the Parent Company, etc,

The company (Toyo Suisan Kaisha, Ltd.) does not have a parent company, etc., so there is nothing of note to report.

6. Other Matters of Import to Management of the Company

There is nothing of note to report.

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