Instant Noodles Overseas and Frozen Foods in Japan to Drive Profit Growth for Toyo Suisan

Toyo Suisan is pursuing growth with differentiated strategies at home in Japan and overseas. Due to differences in market maturity, we expect a faster 5-year revenue CAGR for overseas markets, at 3.8%, versus 3.1% for the domestic market. Outside Japan, most notably the US and Mexico, the company is expanding production capacity and product portfolio to drive volume expansion, as there is further room for instant noodles penetration. The company already holds leading market shares in these countries, but we think growth can be maintained by optimizing product mix and introducing products that span a wider price range.