Nisshin Seifun : Supplementary Materials First Quarter of Fiscal 2023

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.

Supplementary Materials

First Quarter of Fiscal 2023

1. Consolidated Performance Highlights ……………………… P. 1

II. Net Sales and Operating Profit by Segment ……………… P. 2-3

July 26, 2022

Nisshin Seifun Group Inc.

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.

I. Consolidated Performance Highlights

Net sales

(Millions of yen)

* Line graph is overseas sales ratio

240,000					31.7
200,000
		22.2
160,000	17.6	26.4	26.3
120,000
80,000		157,819	165,685	159,220	189,296
141,271
40,000
0	1Q	1Q	1Q	1Q	1Q
	FY2019	FY2020	FY2021	FY2022	FY2023

Operating profit (%)

(%)

(Millions of yen)

(%)

40.0	12,000	5.1					6.0
35.0				4.6	4.7
10,000				5.0
30.0		3.9
25.0	8,000			3.1			4.0
20.0	6,000						3.0
15.0	4,000	7,260			7,334	8,859	2.0
	6,223
10.0		5,186
2,000				1.0
5.0
0.0	0	1Q	1Q	1Q	1Q	1Q	0.0
		FY2019	FY2020	FY2021	FY2022	FY2023

(Millions of yen)				Ordinary profit (%)
12,000
6.4																					5.2
10,000															5.5
						4.6
8,000									3.9
6,000
																										9,919
4,000			9,052																8,831
		7,314
											6,463
2,000
0
			1Q				1Q				1Q				1Q				1Q
		FY2019		FY2020		FY2021		FY2022		FY2023

		Profit attributable to	(%)
(%)	(Millions of yen)	owners of parent (%)

7.0	10,000						6.0
6.0	8,000	4.3					5.0
			3.3
5.0					3.5	4.0
6,000
4.0		2.8	2.6
				3.0
3.0	4,000					6,306	2.0
2.0		6,083	4,429	4,333	5,535
2,000
1.0				1.0
0.0	0	1Q	1Q	1Q	1Q	1Q	0.0
		FY2019	FY2020	FY2021	FY2022	FY2023

[Performance Trends]	Q201906 Q201906 Q201906 Q201906 Q201906		(Millions of yen)
	1Q	1Q	1Q	1Q	1Q	vs. 1Q	Change		FY2023
	FY2019	FY2020	FY2021	FY2022	FY2023	FY2022	(%)		Forecast
Net sales*1	141,271	157,819	165,685	159,220	189,296	30,075	118.9%		760,000
Overseas sales	24,886	41,607	36,741	41,914	59,952	18,038	143.0%	227,500
(%)	17.6%	26.4%	22.2%	26.3%	31.7%	5.3%			29.9%
Operating profit*1	7,260	6,223	5,186	7,334	8,859	1,525	120.8%	30,000
(%)	5.1%	3.9%	3.1%	4.6%	4.7%	0.1%			3.9%
Ordinary profit*1	9,052	7,314	6,463	8,831	9,919	1,088	112.3%	31,000
(%)	6.4%	4.6%	3.9%	5.5%	5.2%	(0.3)%			4.1%
Profit attributable to owners of	6,083	4,429	4,333	5,535	6,306	771	113.9%	18,500
parent*1
(%)	4.3%	2.8%	2.6%	3.5%	3.3%	(0.2)%			2.4%

Capital expenditures	3,297	5,321	3,818	3,852	3,641	(211)	94.5%
(construction base)
Depreciation and amortization	3,550	4,247	5,316	5,500	5,587	87	101.6%
(Reference)
Operating profit before amortization	7,807	8,189	7,111	9,562	11,080	1,518	115.9%
of goodwill, others*1

22,000

24,000

39,041

Amortization of goodwill, others*2

546

1,965

1,925

2,227

2,220

(7)

99.7%

9,041

*1 The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ No. 29) and relevant implementation guidance from the start of FY2022 (April 1, 2021).

*2 "Amortization of goodwill, others" refers to amortization of goodwill and intangible assets (customer-related assets, etc.)

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II. Net Sales and Operating Profit by Segment

[Net Sales by Segment]

				(Millions of yen)			(Millions of yen)
1Q	(Composition	1Q	(Composition	Difference from	YoY Change		FY2023	(Composition
FY2022	ratio)	FY2023	ratio)	previous year			Forecast	ratio)

Flour Milling	71,977	45%	96,949	51%	24,971	134.7%	385,000	51%
Processed Food	46,143	29%	46,736	25%	592	101.3%	195,000	26%
Prepared Dishes and Other Prepared Foods	33,106	21%	35,414	19%	2,308	107.0%	140,000	18%
Others	7,992	5%	10,195	5%	2,202	127.6%	40,000	5%
Total	159,220	100%	189,296	100%	30,075	118.9%	760,000	100%

Overseas Sales (included in sales data above)				(Millions of yen)
	1Q	1Q	Difference	Impact of	YoY		FY2023
	currency
	from previous
	FY2022	FY2023	exchange rate	Change		Forecast
	year
			fluctuations
	36,385	53,665	17,279	5,797	147.5%
Flour Milling		199,700
Processed Food	4,292	4,737	444	416	110.4%		21,500
Prepared Dishes and Other Prepared Foods	-	-	-	-	-		-
Others	1,235	1,550	314	84	125.5%		6,300
Total	41,914	59,952	18,038	6,299	143.0%		227,500

Currency Exchange Rates	(Yen)
1Q	1Q	FY2023
FY2022	FY2023	(Projection)

USD	109.0	125.9	125.0
CAD	88.1	99.4	100.0
AUD	84.0	91.6	94.0
NZD	77.9	84.1	86.0
THB	3.5	3.7	3.8
INR	1.5	1.7	1.7

(Analysis of Net Sales Difference from Previous Year)

			(Billions of yen)
			1Q FY2023
			(Difference from
			previous year)
Flour Milling	+25.0
 Domestic wheat flour shipments (up 2.2% YoY)	+0.8
		 Flour price revisions, others accompanying revised wheat prices	+6.5
		 Bran prices	+0.4
		 Overseas sales	+17.3
Processed Food	+0.6	 Processed Food sales	+1.3
		Household-use flour sales	(0.1)
		Prepared mix product sales	+0.3
		Pasta-related sales	+0.2
		Frozen food sales	(0.3)
		Overseas processed food sales	+0.8
		Other	+0.4
		 Oriental Yeast sales	(0.3)
	+2.3	 Nisshin Pharma sales	(0.4)
Prepared Dishes and Other Prepared Foods	 Prepared dishes and other prepared foods sales	+2.3
Others	+2.2	 NBC Meshtec sales	+0.2
		 Facility construction sales, others (Nisshin Engineering, others)	+2.0
Total	+30.1

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[Operating Profit by Segment]

						(Millions of yen)
	1Q	(Composition	1Q	(Composition	Difference from	YoY
	FY2022	FY2023	previous year	Change
	ratio)	ratio)
Flour Milling	1,685	23%	3,727	42%	2,041	221.2%
Processed Food	4,094	56%	2,896	33%	(1,198)	70.7%
Prepared Dishes and Other Prepared Foods	616	8%	652	7%	36	106.0%
Others	875	12%	1,609	18%	733	183.8%
Adjustments	62	1%	(26)	-	(89)	-
Total	7,334	100%	8,859	100%	1,525	120.8%
Amortization of goodwill, others (Deducted from [Operating Profit by Segment] above)	(Millions of yen)

(Millions of yen)

FY2023

Forecast (Composition ratio)

9,200 31%

12,300 41%

3,300 11%

5,100 17%

100 0%

30,000 100%

	1Q	1Q	Difference from				FY2023
	FY2022	FY2023	previous year					Forecast
Flour Milling	1,819	1,812	(7)			7,408
Processed Food	16	16		-			64
Prepared Dishes and Other Prepared Foods	392	392		-			1,568
Others		-	-	-					-
Total	2,227	2,220	(7)			9,041
Overseas Operating Profit (included in [Operating Profit by Segment] above)										(Millions of yen)
	1Q	1Q						Impact of		YoY					FY2023
	Difference from		currency
	FY2022	FY2023	previous year			exchange rate		Change						Forecast
							fluctuations
Flour Milling	302	1,511	1,209				249	500.0%		1,700
Processed Food	786	640	(146)			87	81.4%				2,700
Prepared Dishes and Other Prepared Foods		-	-	-			-	-				-
Others	77	167	90				9	217.1%			400
Total	1,166	2,319	1,153				346	198.9%			4,800

(Analysis of Operating Profit Difference from Previous Year)

			(Billions of yen)
			1Q FY2023
			(Difference from
			previous year)
Flour Milling	+2.0	 Domestic wheat flour shipment volume
+0.2
		 Sales expansion costs	+0.1
		 Bran prices	+0.3
		 Cost related	+0.2
Processed Food	(1.2)	 Overseas operating profit	+1.2
 Shipment volume	(0.4)
		 Sales expansion costs	+0.1
		 Cost related	(0.8)
		 Overseas operating profit	(0.1)
		(incl. Oriental Yeast, Nisshin Pharma exports)
Prepared Dishes and Other Prepared Foods	+0.1	 Sales	+0.5
Others	+0.7	 Cost related, others	(0.4)
 Sales	+0.5
Adjustments	(0.1)	 Cost related, others	+0.2
 Intersegment transaction eliminations	(0.1)
Total	+1.5

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