Nichirei : Presentation Material

FY23/3 First Quarter Presentation Material

August 2, 2022 Nichirei Corporation

Consolidated Group Results

• Nichirei is taking action to counter increased costs, aiming to achieve full-year plan

(Billions of yen)

				Q1						Full Year
			Results	Y o Y		Progress rate	Forecast	Y o Y		Compared to previous forecast
			Variance	% Change	for full-year	Variance	% Change	Previous	Variance
				forecasts		forecast
		Processed Foods	65.8	7.0		12%	26%	273.0	28.8		12%	258.0	15.0
		Marine Products	16.0	1.1		7%	30%	53.1	-14.6		-22%	53.1	0
		Meat and Poultry	20.7	0.6		3%	24%	85.0	4.7		6%	85.0	0
		Logistics	57.3	4.0		8%	24%	234.0	9.5		4%	234.0	0
		Real Estate	1.1	0		2%	24%	4.6	0.3		7%	4.6	0
		Other	1.0	-0		-3%	20%	4.9	0.7		17%	4.9	0
		Adjustment	-5.8	-0.3		-	-	-21.6	1.0		-	-21.6	0
Net Sales	156.1	12.4		9%	25%	633.0	30.3		5%	618.0	15.0
		Processed Foods	3.0	0.2		8%	21%	14.5	0.3		2%	14.5	0
		Marine Products	0.1	-0.1		-56%	10%	1.0	0		4%	1.0	0
		Meat and Poultry	0.2	-0.1		-35%	15%	1.6	0.4		37%	1.6	0
		Logistics	3.4	-0.4		-9%	22%	15.3	0.7		5%	15.3	0
		Real Estate	0.4	-0		-4%	23%	1.9	0.2		15%	1.9	0
		Other	-0.0	0.1		-	-	-0.3	0		-	-0.3	0
		Adjustment	-0.5	-0		-	-	-2.5	-1.6		-	-2.5	0
Operating Profit	6.7	-0.4		-5%	21%	31.5	0.1		0%	31.5	0
Ordinary Profit	7.0	-0.3		-4%	22%	31.9	0.2		1%	31.9	0
Profit attributable to	4.3	-0.1		-3%	20%	21.2	-2.2		-9%	21.2	0
	owners of parent

• Net sales rose on strong performance for mainstay Processed Foods and Logistics
• Operating profit was down 5% from the same period of the previous fiscal year on decreased earnings in Logistics
• Full-yearnet sales forecast has been revised upward based on progress during Q1

Exchange Rates		(yen)
	FY 23/3	FY 23/3	FY 22/3
	full year	first quarter	first quarter
	(forecast)	(actual)*	(actual)*
USD/JPY	129.00	116.21	105.90
EUR/JPY	139.00	130.40	127.68
THB/JPY	3.70	3.52	3.50

• Exchange rate figures are the average for the January-March period.

Confidential	© Nichirei Corporation. All rights reserved.	1

Processed Foods Business

• Wide-rangingprice revisions and cost controls implemented to achieve full-year earnings plan

										(Billions of yen)
			Q1					Full Year
			Y o Y		Progress rate		Y o Y		Compared to previous
		Results		Forecast		forecast
				for full-year			Previous
			Variance	% Change	forecasts		Variance	% Change	Variance
									forecast
	Net Sales	65.8	7.0	12%	26%	273.0	28.8	12%	258.0	15.0
Food	Household-use Prepared Foods	19.3	0.5	3%	24%	80.4	3.6	5%	80.4	0
Commercial-use Prepared Foods	25.0	3.3	15%	26%	105.1	12.5	13%	97.3	7.8
Processed	Processed Agricultural Products	4.6	-0.4	-8%	22%	20.0	0	0%	20.8	-0.8
	Overseas	13.1	3.4	35%	29%	53.4	12.6	31%	45.4	8.0
	Other	3.7	0.2	6%	26%	14.1	0.1	1%	14.1	0
	Operating Profit	3.0	0.2	8%	21%	14.5	0.3	2%	14.5	0

Confidential	© Nichirei Corporation. All rights reserved.	2

Processed Foods Business

First Quarter

Household-use Prepared Foods

• Demand has remained at a high level since rising sharply during the covid-19 crisis, with positive sales for Imagawayaki cakes and other snack items

Commercial-use Prepared Foods

• Sales to restaurants have recovered with the easing of restrictions, along with increased sales to the home meal replacement (HMR) market
• Sales were positive for mainstay products such as processed chicken and hamburg steaks

Overseas

• Sales of household-use products from U.S. subsidiary InnovAsian Cuisine remained positive

Operating Profit

• Along with the weak yen, higher food material costs and logistics expenses had a significant impact on earnings
• Nichirei responded with cost controls and price revisions, and received a boost from improved earnings at GFPT Nichirei (Thailand)

Full-year Forecast

Household-use Prepared Foods

• Sales increase anticipated for processed chicken products from Thailand as production returns to normal, as well as for single-serving meals such as Gokubuto Tsukemen (extra thick noodles with dipping sauce), a new product for fall

Commercial-use Prepared Foods

• Nichirei will continue to concentrate on expanding sales volume to major users, focusing mainly on processed chicken items
• Net sales forecast revised upward in anticipation of continued increases in demand

Overseas

• Steady sales in the U.S. expected to continue, along with an increase in sales in Thailand to meet firm demand in Europe.

Operating Profit

• Impact of cost increases to become increasingly manifest from the second half of the fiscal year.
• Nichirei expects to secure earnings gains from continued cost controls, and wide-ranging price increases to be implemented in the second half.

Confidential	© Nichirei Corporation. All rights reserved.	3

Logistics Business

• Despite the impact from cost increases, Nichirei is steadily implementing measures for revenue and earnings gains

														(Billions of yen)
					Q1						Full Year
					Y o Y		Progress rate		Y o Y		Compared to previous
				Results		Forecast		forecast
							for full-year				Previous
					Variance	% Change	forecasts		Variance	% Change	Variance
													forecast
	Net Sales	57.3	4.0		8%	24%	234.0	9.5		4%	234.0	0
		Japan Subtotal	43.7	0.6		1%	24%	180.0	5.6		3%	180.0	0
			Logistics Network	25.8	0.4		1%	24%	106.0	3.1		3%	106.0	0
			Regional Storage	17.9	0.2		1%	24%	74.0	2.6		4%	74.0	0
Logistics		Overseas	12.8	3.3		35%	26%	49.6	3.7		8%	49.6	0
	Other/Intersegment	0.7	0.1		18%	17%	4.4	0.1		3%	4.4	0
	Operating Profit	3.4	-0.4		-9%	22%	15.3	0.7		5%	15.3	0
		Japan Subtotal	3.4	-0.2		-7%	24%	14.0	0.6		4%	14.0	0
			Logistics Network	1.3	-0.2		-13%	23%	5.7	0.2		3%	5.7	0
			Regional Storage	2.0	-0		-2%	25%	8.3	0.4		5%	8.3	0
		Overseas	0.4	0.1		26%	15%	2.3	0.2		11%	2.3	0
		Other/Intersegment	-0.3	-0.2		-	-	-1.0	-0.1		-	-1.0	0

Confidential	© Nichirei Corporation. All rights reserved.	4