Looking back on FY 3/2026 from my position as CSO, the year was one in which we faced the hard reality of falling short of plan, while also clarifying the structural issues behind that result.

The most significant factor was that we have not delivered sufficient results in the global market, which offers substantial room for growth from a business portfolio perspective. This insufficiency stems from our failure to fully leverage the strengths we have cultivated in Japan, such as our marketing capabilities and food technology.

In our global expansion, we have brought the concepts of products represented by CUP NOODLE to each local market, developed flavors using locally procured ingredients that win the support of local consumers, and manufactured and sold our products locally. In other words, we have made local production for local consumption our guiding principle. This approach is sound, and we will continue it. Our global expansion was led by expatriates from Japan, but we have gradually shifted toward entrusting operations to local employees who understand their local markets, thereby heightening their motivation and sense of ownership. This decision, too, is the right direction and one we should continue to pursue. As we take our global expansion to the next stage, however, I want to reconsider how we should horizontally deploy our Japanese know-how and technologies so that we can fully deliver the essence of NISSIN to consumers. For the domestic market, meanwhile, I believe the Group still has room to grow, even as market maturation and population decline advance. In instant noodles, NISSIN FOOD PRODUCTS and MYOJO FOODS together hold a high market share, and our Non-Instant Noodles Businesses are also steadily expanding their sales. Building on this solid business foundation, we aim to achieve further growth by strengthening higher value-added offerings and developing products for consumers of all generations.

Globally, there are quite a few regions where the horizontal deployment of the winning formula we cultivated in Japan, namely innovative products and bold communication, has proven successful. Brazil is a prime example. Since we made our operations there wholly owned, we have rolled out bold, Japanese-style marketing, and recently one of our marketing videos generated a major response with more than 12 million views, contributing to greater brand value. In Brazil’s instant noodles market, we now hold a very high share of 65% by volume and 77% by value (FY 3/2026 results). Revenue has continued to grow at a compound annual growth rate (CAGR) of 13.0% (FY 3/2017 to FY 3/2026). In Europe we have launched Soba, a cup-type yakisoba product, which is also delivering strong growth. With its Japanese-style package design featuring brush-stroke lettering on a black background, Soba made a strong impression on European consumers and raised the profile of the NISSIN brand. These successes are being carried over to the new brands we plan to launch (described below) and offer valuable insights as we consider our future global strategy.

As these successes show, expanding overseas does not always mean tailoring everything to local tastes. What matters is boldly demonstrating the creativity that is unique to us. In recent years, authentic Japanese-style ramen has been gaining popularity and attracting significant attention. Travelers to Japan, for example, form long lines at famous ramen shops. In the United States, too, the number of specialty ramen restaurants is rising sharply and the market is expanding. With bowls served at price points of 3,000 yen to 5,000 yen, if we can offer Japanese-style instant noodles that let people easily enjoy restaurant-quality flavor at home, we should be able to expand into the mass market.

As Korean instant noodles rise in global profile on the back of the popularity of K-POP and the like, Japanese-style instant noodles remain a white space. We will therefore roll out NISSIN Japanese-style instant noodles and bring the value of Japanese-style ramen to the fore. Following the United States, we are also considering expansion in Brazil and Europe. In addition, we will bring to life ideas such as launching collaboration products with famous domestic restaurants that enjoy strong inbound demand.

As the story goes, Momofuku Ando’s desire to spread instant ramen throughout the world led him to tour Europe and the United States. These experiences inspired the invention of CUP NOODLE, and globalization has been a goal of the NISSIN FOODS Group ever since our founding. Over decades of effort, we have learned what it takes to achieve globalization. Now we are entering a new phase that could be called Globalization 2.0.

Specifically, we will clarify our principles across our global operations and share the common concept of the essence of the NISSIN FOODS Group throughout the world. As noted above, we aim to establish a structure in which headquarters first articulates the winning formula and sets the direction, while local teams then translate formula and direction into concrete action.

This does not mean shifting total responsibility onto either headquarters or the local organizations. Rather, Japan and local teams communicate closely, share challenges and concerns, and work together while frankly exchanging views. This approach is diversity and inclusion in its truest sense, and without such experiences we cannot become a single, unified company.

We are already making progress in building the foundation for Globalization 2.0. A key command center for global horizontal deployment is the Global Strategy Division, established within the Corporate Planning Platform in December 2025. With this department at the core, we will swiftly deploy successful cases and best practices from around the world while carefully identifying the regions where they can be applied.

We are also making strong progress in developing the human resources who will drive globalization under the leadership of CHRO Hamase. Beyond nurturing Japanese talent who can succeed globally, we are also developing multinational talent who succeed globally. Only by building an organization where people of any nationality can thrive can we grow into a truly global company.

For the Group to achieve sustainable growth, it is important to deploy the winning patterns we have cultivated in the domestic instant noodles market not only to overseas markets but also to our non-instant noodles domains.

Indeed, the performance of our non-instant noodles domains is steadily improving. The Chilled/Frozen Foods and Beverages Business has expanded significantly, driven by the growth of NISSIN YORK among others, with revenue reaching around 100 billion yen. In the Confectionery/Snack Business, NISSIN CISCO, BonChi, and KOIKE-YA are each performing solidly, and adding SERIA ROILE, which we made a subsidiary in February 2026, brings this business to around 100 billion yen as well, steadily increasing both scale and profitability.

Going forward, we will pursue the creation of synergies between these Non-Instant Noodles Businesses and our Instant Noodles Business. Of course, factors such as distribution channels differ from those of the Instant Noodles Business. While we can expect synergies in areas such as sharing/streamlining administrative functions and IT infrastructure, we must also squarely acknowledge the reality that consumers do not buy a product simply because it comes from the NISSIN FOODS Group. Even so, there are surely areas where we can apply our ingenuity. SERIA ROILE, for example, has efficiently expanded its sales by focusing on select distribution routes such as restaurant chains and convenience stores. By combining that foundation with the strong relationships our Instant Noodles Business has built with business partners, we can expect to further expand sales channels and enhance brand recognition. In addition, product-level synergies are beginning to emerge, such as collaborations between the company’s ice cream and KANZEN MEAL. We will continue to explore the seeds of synergy creation, seeking to extend these initiatives to our other Non-Instant Noodles Businesses as well.

Growth Trajectory and Challenges in the Non-Instant Noodles Business

*Source: IR filings of each company and segment data of Capital IQ.
Timing: Revenue CAGR based on FY2024 vs. FY2021 actuals; revenue & OPM based on FY2024 actuals for each company, for an equivalent comparison.