Disclaimer: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance

with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.

Summary of Financial Statements for the First Quarter of Fiscal 2022 [Japanese Standards]

July 27, 2021

Listed Company Name: Nisshin Seifun Group Inc.

Registered on Tokyo Stock Exchange

Code:

2002

URL:

https://www.nisshin.com

Representative:

Nobuki Kemmoku, Representative Director and President

Contact:

Reiko Adachi, General Manager, Public Communications Department (General Administration Division)

Tel.: +81-3-5282-6650

Date to submit the Quarterly Securities Report:

August 6, 2021

Date to start distributing dividends:

-

Supplementary materials for this summary of financial statements:

Yes

Results briefing for financial results:

None

(Figures shown are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Quarter of Fiscal 2022 (April 1, 2021 to June 30, 2021)

  1. Consolidated Business Results

(The percentages indicate the rates of increase or decrease compared with the same period of the previous fiscal year.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

First three months

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

159,220

(3.9)

7,334

41.4

8,831

36.6

5,535

27.7

of Fiscal 2022

First three months

165,685

5.0

5,186

(16.7)

6,463

(11.6)

4,333

(2.2)

of Fiscal 2021

(Note) Comprehensive income: First three months of Fiscal 2022: ¥2,197 million (down

87.7%)

First three months of Fiscal 2021: ¥17,818 million (-%)

Earnings per share

Fully diluted earnings

per share

First three months

Yen

Yen

18.62

18.61

of Fiscal 2022

First three months

14.58

14.58

of Fiscal 2021

(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the start of

the fiscal year (April 1, 2021). All figures for the first quarter of the fiscal year ending March 31, 2022 reflect the application of this accounting standard.

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

June 30, 2021

686,437

440,978

62.5

March 31, 2021

687,415

444,774

63.0

(Reference) Equity capital:

June 30, 2021: ¥429,224 million

March 31, 2021: ¥433,089 million

(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the start of

the fiscal year (April 1, 2021). All figures for the first quarter of the fiscal year ending March 31, 2022 reflect the application of this accounting standard.

2. Dividends

Dividend per share

1Q End

2Q End

3Q End

Year-End

Annual

Yen

Yen

Yen

Yen

Yen

Fiscal 2021

17.00

20.00

37.00

Fiscal 2022

Fiscal 2022 (forecast)

19.00

20.00

39.00

(Note) Revision to the latest

forecast of dividends: None

(Note) Breakdown of year-end dividends for the fiscal year ended March 31, 2021

Dividend per share of common stock: ¥18.00

Commemorative dividend: ¥2.00 (dividend commemorating 120th anniversary)

3. Forecast of Consolidated Business Results for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(The full-year percentages indicate the rates of increase or decrease compared with the previous fiscal year, the percentages for the first half are comparisons with the same period of the previous fiscal year.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

First half

330,000

(1.8)

14,400

16.5

15,600

14.3

9,100

0.5

30.60

Full year

670,000

(1.4)

29,200

7.4

31,300

4.7

19,300

1.5

64.90

(Note) Revision to the latest forecast of business results: Yes

(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the start of the fiscal year (April 1, 2021). Figures for consolidated business forecasts reflect the application of this accounting standard.

* Notes

  1. Changes in important subsidiaries during the period under review (changes in specified subsidiaries involving a change in the scope of consolidation): None
  2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes

Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Related Notes (3) Notes on Quarterly Consolidated Financial Statements [Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statements]" on page 12 of the Attachment.

  1. Changes in accounting policies, changes in accounting estimates and revisions restated
    1) Changes in accounting policies associated with the revisions of accounting standards, etc.: Yes

2) Changes in accounting policies other than the above:

None

3) Changes in accounting estimates:

None

4) Revisions restated:

None

(4) Number of shares issued and outstanding (common stock)

  1. Number of shares issued and outstanding (including treasury shares)
  2. Number of treasury shares
  3. Average number of shares outstanding

As of June 30,

304,357,891

As of March 31,

304,357,891

2021

2021

As of June 30,

6,963,420

As of March 31,

6,983,147

2021

2021

First three months

297,382,954

First three months

297,284,366

of Fiscal 2022

of Fiscal 2021

  • Quarterly earnings reports are not subject to quarterly review by certified public accountants or independent account auditors.
  • Statement regarding the proper use of financial forecasts and other special remarks
    1. The statements contained in this document are based on various assumptions and do not constitute any guarantee or definite promise that projections of future performance or related business policies will actually be realized. For details of assumptions for financial forecasts and other related matters, please refer to "1. Qualitative Information for the Period under Review (3) Forecast of Consolidated Business Results and Other Forward- looking Information" on page 7 of the Attachment.
    2. Supplementary materials for this report can be found on the Company's website.

Contents of the Attachment

1. Qualitative Information for the Period under Review...........................................................

2

(1)

Business Performance....................................................................................................................

2

(2)

Financial Position ..........................................................................................................................

5

(3)

Forecast of Consolidated Business Results and Other Forward-looking Information ..................

7

2. Quarterly Consolidated Financial Statements and Related Notes ........................................

8

(1)

Quarterly Consolidated Balance Sheets.........................................................................................

8

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income..............................

10

[Quarterly Consolidated Statements of Income].................................................................

10

[Quarterly Consolidated Statements of Comprehensive Income]........................................

11

(3)

Notes on Quarterly Consolidated Financial Statements ..............................................................

12

[Notes on the Premise of a Going Concern] .......................................................................

12

[Notes on a Significant Change in Shareholders' Equity] ...................................................

12

[Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial

Statements]........................................................................................................................

12

[Changes in Accounting Policies] ......................................................................................

12

[Segment Information, etc.] ...............................................................................................

14

1

1. Qualitative Information for the Period under Review

(1) Business Performance

[Overview of the Period under Review]

During the first three months of the fiscal year ending March 31, 2022, the Japanese economy continued to face an uncertain future with the declaration of a state of emergency in Japan; this despite movement toward a turnaround in economic and production activities and signs of hope of an end to the pandemic accompanying the widespread uptake of vaccinations.

Under these conditions, the Group strove to fulfill its corporate mission of ensuring the stable supply of foods involving wheat flour and the delivery of safe and reliable products in each business area, as well as the safety of the employees who support this mission. Additionally, the Group gave highest priority to achieving a swift recovery in sales and earnings capabilities in order to realize its long-term vision called "NNI 'Compass for the Future'."

With respect to performance, consolidated net sales for the first three months of the fiscal year ending March 31, 2022, decreased 3.9% year on year to ¥159,220 million. This result primarily reflected a decline in sales due to lower revenue following the application of an accounting standard regarding revenue recognition, as well as lower sales due to the termination of outsourced production in the pet food business. This decline came despite increased sales atop an emerging recovery from the impact in the previous year of the novel coronavirus pandemic in the domestic flour milling and prepared dishes and other prepared foods businesses, as well as sales growth from higher wheat market prices and effects from currency exchange in the overseas flour milling business. Excluding the impact of application of the new accounting standard, sales actually rose by 5% year on year. In terms of profits, operating profit increased 41.4% year on year to ¥7,334 million, ordinary profit was up 36.6% to ¥8,831 million, and profit attributable to owners of parent rose 27.7% to ¥5,535 million. These results were largely reflective of profit growth in the overseas flour milling and prepared dishes and other prepared foods businesses.

(Year-on-year Comparison)

(Millions of yen)

First three months of

First three months of

Difference

Change

Fiscal 2021

Fiscal 2022

Net sales

165,685

159,220

(6,464)

(3.9)%

(Ref.) Net sales -

Estimated impact of

-

(14,700)

(14,700)

-

change in accounting

standard

(Ref.) Net sales -

Excluding impact of

165,685

173,920

8,235

5.0%

change in accounting

standard

Operating profit

5,186

7,334

2,148

41.4%

Ordinary profit

6,463

8,831

2,368

36.6%

Profit attributable to

4,333

5,535

1,202

27.7%

owners of parent

2

[Business Overview by Segment] 1) Flour Milling Segment

(Millions of yen)

First three months of

First three months of

Difference

Change

Fiscal 2021

Fiscal 2022

Net sales

68,838

71,977

3,139

4.6%

(Ref.) Net sales -

Estimated impact of

-

(3,800)

(3,800)

-

change in accounting

standard

(Ref.) Net sales -

Excluding impact of

68,838

75,777

6,939

10.1%

change in accounting

standard

Operating profit

605

1,685

1,079

178.3%

In the flour milling business in Japan, shipments increased year on year atop recovery trends in demand for commercial wheat flour, which offset a reduction in shipments of household-use products compared to growth in demand for such products in the previous year. Additionally, in June 2020, we implemented price revisions for commercial wheat flour in response to revised government prices for five classes of imported wheat enacted in April 2021. On average, the government's price for imported wheat rose 5.5%.

The price of bran, a byproduct of the milling process, remained strong throughout the period.

In the overseas flour milling business, sales were higher year on year mainly due to the effects of rising wheat market prices in the United States, coupled with foreign currency translation effects in Australia.

As a result, net sales of the Flour Milling Segment increased 4.6% year on year to ¥71,977 million, overcoming the sales-reducing effect of the application of an accounting standard regarding revenue recognition. Operating profit climbed 178.3% to ¥1,685 million, benefiting mainly from shipment growth in Japan, robust bran prices, firm business performance in the U.S. atop measures that included earnings base enhancement, and improved earnings in Australia.

2) Processed Food Segment

(Millions of yen)

First three months of

First three months of

Difference

Change

Fiscal 2021

Fiscal 2022

Net sales

54,760

46,143

(8,617)

(15.7)%

(Ref.) Net sales -

Estimated impact of

-

(7,800)

(7,800)

-

change in accounting

standard

(Ref.) Net sales -

Excluding impact of

54,760

53,943

(817)

(1.5)%

change in accounting

standard

Operating profit

4,038

4,094

56

1.4%

In the processed food business, while demand for commercial-use products continued to recover and shipments of prepared mix held firm overseas, shipments of household-use products fell short of the tremendous growth reported in the previous year, an effect that overshadowed

3

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Nisshin Seifun Group Inc. published this content on 16 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2021 08:53:02 UTC.