MARUHA GROUP INC.

MARUHA GROUP MID-TERM MANAGEMENT PLAN

[ New Wave 21 ]

1

18,508 19,641 20,733 22,57324,131

1993 1995 1997 1999 2001

6,2125,9985,6965,8375,806

1993 1995 1997 1999 2001

Changes in the Business Environment around Maruha Group(Overseas Market)

18,498

25,53929,727

32,131 33,321

1993 1995 1997 1999 2001

Every market, including China, Europe, North America, and Asia, has potential for growth.

Annual average growth rate 0.8%

Annual average growth rate3.4%

Annual average growth rate7.6%

Annual average growth rate1.5%

North AmericaEU

Asia-Oceania

All other Asian and OceaniaChina

Source: FAO Food Balance Sheet – Fish, Seafood, 2004 Note: Food supply in the charts above shown in measurements of thousands of tons

9,563 9,85410,434 10,565 10,790

1993 1995 1997 1999 2001

2

Capital Investment for Growth (2005~2007)

Processed Food Business SegmentMarine Products Business Segment

*Reinforcement of fillet production facilities in North America

*Efforts to strengthen sales with M&A strategy in North America

*Reinforcement of EU sales through TESS and M&A

*Capital investment in Kingfisher Holdings Limited (Thailand)*Upgrading and expanding primary

processing facility

*Expansion of sales bases and reinforcement of production facilitiesInvestment of facilities in Zhoushan

Industrial Co., Ltd. (China)*Capital investment of facilities in Kingfisher

Holdings Limited (Thailand)Frozen foods and Canned pet foods

*Reinforcement of production facilities for a new item [Delicious Fish “Bone & All”] in China

*Capital participation/capital investment in the meat and livestock business

*New construction of a multi-functional processed food plant in western Japan

*Up-grading of nationwide sales bases*Construction of distribution center to cover

western Japan *Investment in information systems for effective management

Other Business

*New construction of logistics bases in Asia

Cold Storage & Logistics Business Segment

3

To reach the goal set for the next 3 years, an increase in capital of approximately US$200

million by preferred shares has been allocated to major clients and main financial partners

Establishment of stable financial ground

Capital Reinforcement Program

The full amount is expected to apply to capital investment

into the core business for the purpose of realizing a growth strategy

Efforts for growth strategyImprovement of financial strength

Improvement of enterprise value

Increase of capital stock Driving the policy of “choice and focus”

Intensive capital investment

into core business

4

Management Concept and Vision of the Group

Management ConceptManagement Concept

We contribute to society by delivering “secure and safe” foods that are intended to be “healthy”, “authentic” and “easy-to-prepare”, through sound business practices.

We contribute to society by delivering “secure and safe” foods that are intended to be “healthy”, “authentic” and “easy-to-prepare”, through sound business practices.

With “fish” as our core identity, we deliver to our customers high-quality foodstuffs, materials, and services with clear traceability and genuine value” that has been established through the Maruha Group’s more than a century history of innovation.

With “fish” as our core identity, we deliver to our customers high-quality foodstuffs, materials, and services with clear traceability and genuine value” that has been established through the Maruha Group’s more than a century history of innovation.

Management VisionManagement Vision

Marine products “Fish, Around the World”

Processed food “Food Wonderland, Maruha”

Marine products “Fish, Around the World”

Processed food “Food Wonderland, Maruha”

Catch PhraseCatch Phrase

5

Maruha Brand valid to the world

Overwhelming procurement capacity of marine products and sales force covering global markets

World-wide network with excellent information-gathering ability and technical experts in marine products

Procurement of fish resources with quality and price

Advantageous and consistent supply chain system from procurement, processing, up to sales of marine products

Strength of the Maruha Group

6

Status of Strategic Segment and Business Unit

Total (after inter-company elimination)

Other Business/CommonOther Business/Common

Storage & Logistics BusinessStorage & LogisticsBusiness Segment

Sub Total

Foods & Fine ChemicalSugar & Sweeteners

Consumer Foods businessInstitutional Foods business

Processed Foods Business Segment

Sub Total

Catering ServicesMarine Products Wholesaling

Marine Products Trading

N. America Operations

11,80016,000757,900770,000-2,000-2,80025,40023,6002,0002,40021,20020,9005,8008,100171,100178,500

5008005,8006,60050070024,70025,600

2,7003,20054,60055,3002,1003,40086,00091,0006,0008,300540,200547,000

20030025,20028,5001,2001,800380,200377,2003,7004,10081,90088,2001,5001,10035,80036,200-6001,00017,10016,900Fisheries & Aquaculture

Marine Products Business Segment

2003(Actual Result)2004 (Expected)2003(Actual Result)2004(Expected)

Operating ProfitSaleBusiness UnitStrategic

Segment

(Unit:Million Yen)

7

Positioning of Future Business Units

Profitability

Growth

Fisheries & aquaculture

Storage & logistics

Institutional foods

Marine product trading

Size of each circle represents the sales volume of the field.

Areas aiming at growth

Areas aiming at the improvement of profits

Future direction of profitability

Catering Services

North American operations

Fish and Fish product wholesaling

Consumer Foods

8

Target of each Strategic Segments

Maruha Group Inc.

18,000

1,9009,100

11,500

Target of Ordinary Profit

2007

-4,500Total

Storage & Logistics BusinessSegment

Processed Foods Business Segment

Marine Products Business Segment

Strategic Segment

Other Business/ Common

21,000

2,50010,00011,400

Target of Operating Profit

2007

-2,900

(Unit:Million Yen)

9

Overseas Strategy

Surimi,Crab,Black CodMackerel, Octopus, Squid

Surimi, FilletReinforcement of procurement/sales

Procurement/sales

*Reinforcement of procurement functions

*Reinforcement of regional sales*Expansion of European sales

(expecting potential of enlarged EU-Eastern Europe)

Reinforcement of processing integration/sales

Processing/sales

High-Value Added Products

Mackerel, horse mackerel

High-value added productsSurim

i,Fille

t

Triangle OperationGlobal optimization of procurement, processing, and salesOverseas sales goal: One billion US dollars in 2007

High-Value Added Products

Europe North America

Asia

Reinforcement of procurement/production and sales

Procurement/processing/sales

*Reinforcement of procurement and production capacity

*Reinforcement of sales force (Flavored Crab Meat,Frozen Sushi, and Other Seafood products)

*Maximizing the merit of global processing integration

*Regional sales expansion to the area (especially the coastal region of China)

Shrimp,Squid

10

Business Strategy in North America

Measures to be taken

Reinforcement of procurement and production capacity*Procurement of fishing quota*Enhancement of production capacity within the Group

- Increase of surimi products at Trans Ocean Products

- M&A of local processing company- Multiplying the frozen sushi production line

*Material procurement capacity by exploiting suppliers outside of the Group

Reinforcement of the sales force*Sales of Alaskan products*Sales of consumer products (flavored crab meat and

frozen sushi)- Sales of high-value added seafood through M&A of

local sales company*Sales of imported processed products from Asian

affiliates of the groupExpansion of the livestock business

Sales goal: 45 billion yen (2007)

Dutch Harbor

Surimi - Seafood Processing

Bellingham

Imitation crabmeat Production/Sales

Kodiak

Surimi - Seafood Processing

SeattleHead Office

for All Plant

Salem

Imitation Crabmeat/Frozen sushi Production

Bering Sea

Surimi Processing

11

Business Strategy in Europe

Measures to be taken

Further expansion of existing products*Salmon, trout, salted codfish

Reinforcement of sales within the region*Production and sales of processed products for

consumers by M&A of local processing manufacturer*Sales of imported processed marine products from Asia

Promotion of sales to Eastern Europe

Reinforcement of procurement functions for Japan*Expansion of Blue-fin tuna farming in the Mediterranean

Sea*Keeping on being the bulk buyer of Mackerel, octopus,

squid, and tuna

Sales goal: 25 billion yen (2007)

TESS (Trans Europe Seafood Sales) (Netherlands)

Sales of Marine Products

Viver-Atun Cartagena

(Spain/ Tunisia)

Cultivation/Export

Las Palmas Representative Office(Spain)Sales of Marine Products

Taiyo UK(UK)Sales of Marine Products

12

Business Strategy in Asia and Oceania

Measures to be taken

Maximization of global processing integration merits*Main processing bases for the Triangle operation

Kingfisher Holdings Ltd. (Thailand)Zhoushan Industrial Co., Ltd. (China)

Regional sales expansion in Asia (specially in China)*Sales expansion of fish materials for further process*Sales expansion of processed foods for institutional use

(Primary processed products and natural bonito seasoning)

*Sales expansion of consumer foods(Fish sausage, Japanese hotchpotch, canned foods, pet foods)

*Entry to distribution/logistics operations(Development of cold storage business in Dalian and Shanghai)

Sales goal: 30 billion yen (2007)

Kingfisher Holdings Ltd.(Thailand)

Processing of frozen squid, shrimp, shrimp fry, and deep-fried mackerel

Zhoushan Industrial Co., Ltd. (China)

Processing of crabmeat, squid fillet, squid fry, peeled shrimp, and frozen seafood

Maruha (Shanghai) Trading Corporation (China)

Minced fish trading, and sales of consumer foods and pet canned foods

Cixi Yongching Frozen Foods Co., Ltd. (China)

Production of frozen farm products and frozen cooked foods

Tsingtao Duofukang Foods Co., Ltd. (China)

Vegetable extract, salmon flake

Maruha (N.Z.) Corporation Ltd.(New Zealand)

Fishing and sales of marine products

Raoping Younglian Foodstuffs Factory Co., Ltd. (China)

Production of frozen farm products

13

Formation of Production and Sales Structure in North America

Maruha Group Inc.

Maruha Capital Investment, Inc.

Supreme Alaska Seafoods Inc.

Alyeska SeafoodsInc.

Westward SeafoodsInc.

Trans-Ocean Products Inc.

*Head Office (Seattle)*Function:

Seafood Processing*Plant: Dutch Harbor AK.*Product line:

Pollock Surimi, fillet, Crab,Bottom fish, herring, etc.

*Head Office (Seattle)*Function:

Seafood Processing *Plants: Dutch Harbor,

Kodiak*Product Line:

Pollock Surimi, fillet, Crab,Bottom fish, Herring etc

*Head Office (Bellingham)

*Function:Production/Sales

*Plants:Bellingham, Salem

*Product line:*Flavored crabmeat,

frozen sushi, etc.

*Head Office (Seattle)*Function: Surimi

Processing*Operation locations:*Bering Sea, Pacific

Northwest offshore*Product line:

Surimi(pollock, Pacific hake, etc. )

Procurement of additional fishing quota

Reinforcement of Domestic sales in the US

Reinforcement of fillet production facilities

14

Reinforcement of Asian Production Facilities

Zhoushan Industrial Co., Ltd.

Foundation: December 6, 1994

Shareholding ratio: 49%

Sales: 8.206 billion yen (Dec. 2003)

Operating income: 456 million yen

Business content:One of most important overseas production sites. The main operation is primary processing of marine products for further process in Japan.

- Peeled shrimp, processed frozen fishery products, minced fish, frozen squid, and flavored crabmeat, etc.

Kingfisher Holdings

Foundation: February 8, 1972( Maruha participated: December 1990)

Shareholding ratio: 51%

Sales: 18.929 billion yen ( Sept. 2003)

Operating income: 789 million yen

Business content: One of most important overseas production sites. The main operation is marine product processing, but fries are also in production. KF’s main outlets are US,Europe, and Australia.

The maximum important processing base in ASIA

15

Upgrading of Domestic Production Sites

Reinforcement and improvements of domestic production sites

*Expansion of plants close to consumption region

*Construction of new multifunctional plants in western Japan

Transfer of mass production item to the overseas plants

Improvement of the distribution in Western Japan*New construction of a logistics center in Western Japan

*“Eastern Japan Logistics Center” in Utsunomiya is now in operation .

Taiyo Foods Co. Ltd.(Nagasaki)Laver

Koyo Suisan Co., Ltd. (Kushiro)Canned foods, frozen foods

Taiyo A & F (Ishinomaki)Seasoning, frozen foods

Daisy Food Industry Co. Ltd. (Furano)Canned foods

Aomori Canned Foods Co., Ltd. (Aomori)Canned foods, Etc

Tsuchiya Foods Co., Ltd.(Yamagata)

Cup jelly, retort pouch

Maruha Corporation(Shimonoseki)

Fish cake, Dried foods

Maruha Corporation(Utsunomiya)Eastern Japan Logistics Center

Maruha Corporation (Sendai)Fish cake, dried foods, frozen foods

Miyako Foods Inc. (Iwate)Frozen foods

Current domestic production sites Measures to be taken during this Medium-Term Plan

Maruha Corporation(Utsunomiya)

Fish cake, Frozen Foods, Fine chemicals, Seasoning

16

Business Objectivesin Next Med-Term Management Plan

(Note) Interest-bearing debt : Cumulative amount to be reduced during the next three years

Interest-bearing debt

D/E Ratio

ROA

Current Income

Ordinary Income

Operating Income

50,100

7.8

3.8%

-15,000

13,000

16,000

63,000

3.8

5.4%

10,000

18,000

21,000

2004(Expected)

2007(Target)

(Consolidated basis) (Unit: Million Yen)

17

Business Investment

115

165

69

9798

115

0

20

40

60

80

100

120

140

160

180

2002 2003 2004Expected

2005Target

2006Target

2007Target

(Year)

(Hundred Million Yen)

18

Interest-Bearing Debt

3,330

3,080 2,9302,730

2,5202,300

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2002 2003 2004 2005 2006 2007Expected Target Target Target

(Year)

(Hundred Million Yen)

19

R O A

3.12.7

3.8

5.44.9

4.2

0

1

2

3

4

5

6

2002 2003 2004 2005 2006 2007

(%)

Expected Target Target Target(Year)

20

D/E Ratio

10.7

8.47.8

6.3

5.0

3.8

012

3456

789

10

1112

2002 2003 2004 2005 2006 2007

(Power)

Expected Target Target Target(Year)