NO BORDER

Overseas Operations
Nissin Foods has steadily expanded its international presence, starting
with the establishment of Nissin Foods (U.S.A.) Co., Inc. in 1970. Today its
global network encompasses 29 companies in 11 countries. The priority
overseas markets are North America, which is our main overseas market,
and China, where demand is expanding dramatically. We are also building
global market share by aggressively expanding our activities in other consumer
markets where growth is predicted, including Brazil and Russia.
“No Border”
—The activities of
Nissin Foods are
steadily expanding
throughout the world
U.S.
Cup Noodles
Mexican
Cup Noodles
Brazilian
Cup Noodles
European
Cup Noodles
Total world demand for instant noodles has
continued to grow, from 53.3 billion servings in
2001, to 85.7 billion in 2005.
In the year ended March 31, 2006, our overseas
sales increased by 20.7% year on year to
¥51,935 million (US$442 million), excluding
intersegment sales. By geographic area, factors
contributing to growth include an increase in
sales volumes in North America, the expansion
of sales in Hong Kong, and a weak yen.
> The Americas
U.S.A.
In addition to strong sales of our flagship Top
Ramen and Cup Noodles series, there was also
a contribution from two new categories of
microwavable products, the CHOW MEIN and
Souper Meal series, which were launched in
2004. In volume terms, sales increased by 12%
year on year. There was also sustained profit
improvement, thanks to higher production efficiency
following the installation of a large-scale
production line in 2003. We also improved sales
efficiency following a review of our sales systems.
Mexico
The Mexico Branch of Nissin Food Products
Co., Ltd. was restructured as a local subsidiary,
Nissin Foods de Mexico S.A. de C.V.
We also commenced production at a local
plant. This will significantly reduce logistics
costs. We are also working to improve our
income structure in Mexico by using local procurement
to avoid foreign exchange risk, and
by normalizing sales prices.
Brazil
Activities in Brazil are handled by Nissin-
Ajinomoto Alimentos Ltda., a joint venture
between Nissin Foods and Ajinomoto Co., Inc.
This company has an approximately 60%
share of the Brazilian market, in which there is
demand for 1.3 billion servings. We are actively
developing new product categories in Brazil. In
March 2005, we launched the Yakissoba
series, consisting of four pillow-type instant
noodle products.
> Europe
In Europe, interest in Asian food has intensified
in recent years. In April 2004, we established
Nissin Foods Kft. in Hungary in preparation for
the future expansion of our activities in Europe.
This low-cost production base is now fully
operational. We are also focusing on Russia as
a new market for our products, and we are
currently developing a marketing strategy
designed to establish a market position.
> People’s Republic of China
The Chinese market for instant noodles has
14 ANNUAL REPORT 2006