Nippon Suisan Kaisha : Supplemental Documents(1.8MB）

Supplemental Documents for the 1st Quarter of FY2022

Nippon Suisan Kaisha, Ltd.,	4th August 2022

Overview of the 1st Quarter of FY2022

• Ordinary Profit remained at the same level as the previous year although there was intense upward pressure on costs. However, Profit attributable to owners of parent declined due to an increase in corporate taxes.
• Marine Product business went well, covering the poor performance of the Food Product business. The progress rate against the plan has been reasonable so far.

• In the Marine product business, consumption continues to be steady from the previous year, and fish prices are also favored, resulting in increased sales and profits.
• Sales increased in the Food Product business. However, there was a significant decrease in profit due to cost increases.

(Unit: 100 million JPY)	1Q of FY2021	1Q of FY2022	Y-o-Y
(%)
Net Sales	1,654	1,842	188	11.4
Operating Profit	70	66	(3)	(5.3)
Ordinary Profit	74	73	(1)	(1.5)
Profit attributable	51	42	(9)	(18.4)
to owners of parent

Progress

Annual Plan for Rate

FY2022

(%)

7,200 25.6

225 29.7

255 28.9

180 23.5

2

Overview of the 1st Quarter of FY2022 by Segment

• Significant increase in Net Sales in the Marine Products & Food Products Business, including the impact of foreign exchange rates of approximately 5 billion yen

			1Q of	1Q of		Y-on-Y
		(Unit: 100 million JPY)	FY2021	FY2022
						(Amount)	(%)
		Net Sales	1,654	1,842		188	11.4
		Marine Products	635	757		121	19.2
		Food Products	840	929		88	10.5
		Fine Chemicals	78	81		3	4.3
		General Distribution	39	39		(0)	(0.6)
		Others	59	34		(25)	(42.1)
		Operating Profit	70	66		(3)	(5.3)
		Marine Products	21	41		20	95.5
		Food Products	51	36		(14)	(28.9)
		Fine Chemicals	10	8		(1)	(15.7)
		General Distribution	5	4		(0)	(15.5)
		Others	1	1		0	40.4
		Common Costs	(19)	(26)		(6)	36.2
		Ordinary Profit	74	73		(1)	(1.5)
		Profit attributable to owners of parent	51	42		(9)	(18.4)
3

Main factors for increase/decrease in operating profit (Y-on-Y)

• The marine products business benefited from strong market prices and increased profits. However, the food products business struggled due to the rise in raw material costs and the time lag in price increases.
• Common costs increased due to investment in rebranding penetration and other factors.

Marine Products Marine Products	Marine Products	Food Products Fine Chemicals Common costs	consolidation
Fishery &	Aquaculture in	Processing		(including consolidation	adjustments
Aquaculture
South America	/Trading		Adjustments)
（Except for South	(including adjustment
American Aquaculture）	of unrealized profit)
		Overseas 7	Overseas(5)	(Unit: 100 million JPY)
		Japan 4		Japan(8)

Although the		Although there		Both in Japan
	was an impact
		and overseas
selling price
	of cost
		are doing well
of domestic
	increases due
		due to the
aquaculture
	to the fish
		rising prices of
fish has risen,
	disease
		Marine
the cost has
	outbreak, the
		products. The
increased due
	profit level was
		Alaskan pollock
to red tide,
	the same as
		processing in
etc.
	last year
		North America
Domestic
	because of the
		increased profit
fishing was
	return of
		due to
firm, and
	unrealized
		depreciation
profits were
	profits related
		expenses and
increasing.
	to inventories
		decreased
		in the previous
			corona-related
		fiscal year.
			costs.

Profit declined	Although
because price	exports of
increases could	pharmaceutical
not keep up	raw materials
with the rapid	to the U.S.,
increase in	profit declined
costs of raw	due to
materials, etc.	problems at
	production

plants and the impact of a decrease in sales of PCR test reagents.

To spread the rebranding inside and outside the company, we conducted corporate advertising and other measures.

4

Consolidated Balance Sheet (Y-on-Y)

Working capital increased compared to the end of the previous fiscal year.

The italic and bold figures mean increase/decrease, compared to the end of FY2021

(Unit: 100 million JPY)

Current Assets	2,846	195
Cash and deposits	145	7
Notes and accounts	962	59
receivable
Inventory	1,536	95
Non-current Asssets	2,449	42
Property, plant and	1,495	41
equipment
Intangible assets	117	4
Investment and other	836	(3)
assets
Total Assets	5,295	238

5

Current Liabilities	1,946	167
Notes and accounts		544	41
payable
Short-term borrowings		980	148
Accrued expenses		260	8
Non-current Liabilities	1,174	(18)
Long-term borrowings		919	(29)
Net Assets		2,175	89
Shareholder's equity		1,985	87
	Equity Ratio
As of March	37.5% ⇒	As of June	37.5%
2022		2022