Nisshin Seifun : Supplementary Materials Second Quarter of Fiscal 2022

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

Second Quarter of Fiscal 2022

1. Consolidated Performance Highlights……………………… P. 1-2

1. Consolidated Statements of Income……………………… P. 3-7
2. 1. Consolidated Statements of Income
   2. Net Sales and Operating Profit by Segment

1. Consolidated Balance Sheets……………………………… P. 8-9

IV.	Consolidated Statements of Cash Flows………………… P. 10

1. Consolidated ROE…………………………………………… P. 11

October 28, 2021

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.

1. Consolidated Performance Highlights

Net sales

(Millions of yen)	* Line graph is overseas sales ratio
500,000					26.5
			24.1
			22.6
400,000
17.7	17.6
300,000
200,000			346,518	335,944	325,727
	262,140	284,289
100,000
0	2Q	2Q	2Q	2Q	2Q
	FY2018	FY2019	FY2020	FY2021	FY2022

(%)	(Millions of yen)	Operating profit (%)	(%)
30.0	20,000	5.1			6.0
	5.0			4.8
25.0
		4.1		5.0
	15,000		3.7
20.0			4.0
15.0	10,000				3.0
10.0		14,406	14,124		15,568
13,102	12,356	2.0
	5,000
5.0					1.0
0.0	0				0.0
	2Q	2Q	2Q	2Q	2Q
	FY2018	FY2019	FY2020	FY2021	FY2022

(Millions of yen)	Ordinary profit (%)

20,000

5.9 5.9

15,000		4.4		5.3
		4.1
10,000				17,425
15,593	16,809	15,113	13,652
5,000
0
2Q	2Q	2Q	2Q	2Q
FY2018	FY2019	FY2020	FY2021	FY2022

	(Millions of		Profit attributable to		(%)
(%)		owners of parent (%)
yen)			5.0
7.0	20,000	4.0
		3.9	3.9
6.0
						4.0
	15,000
5.0					3.1
				2.7
						3.0
4.0
10,000
3.0
						2.0
				13,519
2.0		10,553	11,108
5,000		9,057	9,957
		1.0
1.0
0.0	0	2Q	2Q	2Q	2Q	2Q	0.0
		FY2018	FY2019	FY2020	FY2021	FY2022

[Performance Trends]

Q202109 Q202109 Q202109 Q202109 Q202109

(Millions of yen)

	2Q	2Q	2Q	2Q	2Q	vs. 2Q	Change	FY2022
	FY2018	FY2019	FY2020	FY2021	FY2022	FY2021	(%)	Forecast
Net sales *1	262,140	284,289	346,518	335,944	325,727	(10,216)	97.0%	670,000

Overseas sales	46,317	49,996	83,609	76,076	86,373	10,297	113.5%	172,700
(%)	17.7%	17.6%	24.1%	22.6%	26.5%	3.9%			25.8%
Operating profit *1	13,102	14,406	14,124	12,356	15,568	3,211	126.0%	29,200
(%)	5.0%	5.1%	4.1%	3.7%	4.8%	1.1%			4.4%
Ordinary profit *1	15,593	16,809	15,113	13,652	17,425	3,772	127.6%	31,300
(%)	5.9%	5.9%	4.4%	4.1%	5.3%	1.2%			4.7%

Profit attributable to owners of	10,553	11,108	13,519	9,057	9,957	899	109.9%
parent *1
(%)	4.0%	3.9%	3.9%	2.7%	3.1%	0.4%

19,300

2.9%

Capital expenditures	10,055	7,760	10,999	7,539	8,173	634	108.4%		21,000
(construction base)
Depreciation and amortization	7,537	7,211	10,141	10,809	11,199	390	103.6%	21,000
Number of employees	6,497	6,771	9,010	9,107	8,999	(108)	98.8%	-
(consolidated) (Persons)
(Reference)
Operating profit before	14,227	15,511	18,390	16,342	19,977	3,634	122.2%	38,062
amortization of goodwill, others *1
Amortization of goodwill, others *2	1,124	1,104	4,266	3,986	4,408	422	110.6%		8,862

*1 The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ No. 29) from the start of the fiscal year (April 1, 2021).

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

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[Balance Sheet Trends]	#N/A	#N/A	#N/A	#N/A	#N/A	(Millions of yen)
	As of	As of	As of	As of	As of	vs. as of
	September 30,
	March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2021
					2021
Current assets	260,751	268,170	238,980	238,674	251,386	12,712
Property, plant and equipment, and intangible assets	163,352	166,780	277,204	288,804	278,864	(9,940)
Investments and other assets	167,408	159,802	150,030	159,935	160,435	499
Total assets	591,512	594,754	666,215	687,415	690,686	3,271
Current liabilities	114,189	114,806	131,058	108,740	113,072	4,332
Non-current liabilities	63,528	61,098	126,114	133,900	131,615	(2,284)
Equity capital	399,278	403,937	394,995	433,089	434,492	1,403
(Equity ratio)	67.5%	67.9%	59.3%	63.0%	62.9%	(0.1)%
Subscription rights to shares	189	167	137	116	95	(20)
Non-controlling interests	14,327	14,743	13,908	11,569	11,410	(159)
Total liabilities and net assets	591,512	594,754	666,215	687,415	690,686	3,271

[Shareholders' Equity and Dividends]

	As of	As of	As of	As of	As of	vs. as of
	September 30,
	March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2021
					2021
Net assets per share (Yen) *1	1,344.68	1,359.49	1,328.71	1,456.37	1,461.46	5.09

FY2022

Forecast

-

	2Q	2Q	2Q	2Q	2Q	vs. 2Q
	FY2018	FY2019	FY2020	FY2021	FY2022	FY2021
Earnings per share (Yen) *1	35.17	37.41	45.50	30.47	33.49	3.02
Fully diluted earnings per share (Yen) *1	35.14	37.37	45.46	30.47	33.49	3.02
Interim dividend per share (Yen)	14.00	16.00	17.00	17.00	19.00	2.00
Total interim dividends (Millions of yen)	4,161	4,754	5,054	5,056	5,652	596

FY2022

Forecast

64.90

-

39.00

-

*1 From the year ended March 31, 2018, when calculating earnings per share and net assets per share, Company shares held by The Master Trust Bank of Japan, Ltd.

as trust assets for the stock-based remuneration plan are included in the treasury shares (listed under shareholders' equity) excluded from calculation of the number of shares of common stock.

[Share Data (Nisshin Seifun Group Inc.)]

	As of	As of	As of	As of	As of
	September 30,
	March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021
					2021
(Interim) Shares issued and outstanding at end of	297,013	297,204	297,359	297,456	297,382
period (Thousand shares)
(Interim) Share price at end of period (Yen)	2,109	2,540	1,802	1,850	1,861
Total market value of shares (Millions of yen)	626,400	754,899	535,841	550,293	553,428

[Statements of Cash Flows]						(Millions of yen)
	2Q	2Q	2Q	2Q	2Q	vs. 2Q
	FY2018	FY2019	FY2020	FY2021	FY2022	FY2021
Net cash provided by (used in) operating activities	22,453	15,905	10,935	25,439	29,376	3,937
Net cash provided by (used in) investing activities	(10,131)	(8,171)	(90,392)	(8,230)	(8,474)	(243)
Net cash provided by (used in) financing activities	(14,467)	(3,636)	19,576	(9,701)	(10,587)	(886)
Effect of exchange rate change on cash and cash	145	(584)	76	277	(597)	(875)
equivalents
Cash and cash equivalents at beginning of period	90,837	98,461	107,374	56,550	59,152	2,602
Increase (decrease) in cash and cash equivalents	-	(1,006)	713	-	-	-
resulting from change of fiscal year-end of subsidiaries

Cash and cash equivalents at end of period	88,837	100,967		48,284	64,335	68,869	4,533
(Yen)		Net assets per share (Yen)		(Yen)		Earnings per share (Yen)
1,600					60
1,500			1,456.37 1,461.46		50			45.50
	1,344.68	1,359.49				35.17	37.41
1,400	1,328.71			40				33.49
					30.47
1,300					30
1,200					20

As of	As of	As of	As of	As of	2Q	2Q	2Q	2Q	2Q
March 31, March 31, March 31, March 31, September	FY2018	FY2019	FY2020	FY2021	FY2022
2018	2019	2020	2021	30, 2021

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1. Consolidated Statements of Income

1. Consolidated Statements of Income

	#N/A	#N/A			(Millions of yen)
	2Q	2Q		YoY		FY2022
	FY2021	FY2022		Change		Forecast
Net sales	335,944	325,727		(10,216)		670,000
Cost of sales	244,039	252,959		8,919
Gross profit	91,904	72,768		(19,135)
Selling, general and administrative expenses	79,548	57,200		(22,347)
Selling expenses	43,096	19,440		(23,655)
Personnel expenses	18,453	18,786		332
Non-personnel expenses	17,997	18,972		975
Operating profit	12,356	15,568		3,211			29,200
Non-operating income	2,796	3,518		722
Interest income	95	62		(32)
	Non-operating income	FY2022	YoY
Dividend income	1,374	1,443		69	(expenses)	Forecast	Change
Share of profit of entities accounted for	848	1,498		649	Net financial income	(260)	(448)
	Equity in earnings
using equity method		1,400	(394)
				(losses) of affiliates
Other	478	513		35
	Other	660	(46)
Non-operating expenses	1,500	1,661		160
Interest expenses	1,377	1,457		79
Other	122	204		81
Ordinary profit	13,652	17,425		3,772			31,300
Extraordinary income	1,439	648		(790)
Gain on sales of non-current assets	305		-	(305)
Gain on sales of investment securities	1,133	648		(485)
Extraordinary losses	446	393		(53)
Loss on retirement of non-current assets	234	393		158
Business restructuring expenses	212		-	(212)
Profit before income taxes	14,644	17,680		3,035
Total income taxes	5,095	7,063		1,968
Profit	9,549	10,616		1,067
Profit attributable to non-controlling interests	491	659		167
Profit attributable to owners of parent	9,057	9,957		899			19,300

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2. Net Sales and Operating Profit by Segment

[2Q FY2022 Performance]

[Net Sales by Segment]

(Millions of yen)

2Q	(Composition	2Q	(Composition	Difference from	YoY
FY2021	ratio)	FY2022	ratio)	previous year	Change

Flour Milling	140,840	42%	147,213	45%	6,373	104.5%
Processed Food	106,485	32%	90,607	28%	(15,877)	85.1%
Prepared Dishes and Other Prepared Foods	70,584	21%	68,333	21%	(2,251)	96.8%
Others	18,034	5%	19,572	6%	1,538	108.5%
Total	335,944	100%	325,727	100%	(10,216)	97.0%

Overseas Sales (included in sales data above)

		2Q		2Q		Impact of	YoY
			Difference from	currency
		FY2021		FY2022	previous year	exchange rate	Change
			fluctuations
	Flour Milling	66,228		75,657	9,428	5,669	114.2%
	Processed Food	7,635		8,166	531	273	107.0%
	Prepared Dishes and Other Prepared Foods		-	-	-	-	-
	Others	2,212		2,549	337	69	115.2%
	Total	76,076		86,373	10,297	6,012	113.5%

(Analysis of Net Sales Difference from Previous Year)

Currency Exchange Rates	(Yen)
	2Q	2Q
	FY2021	FY2022
USD	107.3	109.6
CAD	78.2	88.1
AUD	71.8	82.7
NZD	67.4	77.4
THB	3.4	3.4

(Billions of yen)

2Q FY2022

(Difference from previous year)

Flour Milling	+6.4	 Domestic wheat flour shipments (up 0.2% YoY)	+0.2
		 Flour price revisions, others accompanying revised wheat prices	+0.5
		 Bran prices	+0.7
		 Overseas sales, others	+12.6
Processed Food	(15.9)	 Effect of application of new accounting standard (revenue recognition)	(7.6)
 Processed Food sales *	(1.0)
		Household-use flour sales	(0.5)
		Prepared mix product sales	+0.2
		Pasta-related sales	+0.3
		Frozen food sales	+0.1
		Overseas processed food sales	+1.5
		Other	(2.6)
		 Oriental Yeast sales *	+1.6
		 Nisshin Pharma sales *	(1.1)
Prepared Dishes and Other Prepared Foods	(2.2)	 Effect of application of new accounting standard (revenue recognition)	(15.4)
 Prepared dishes and other prepared foods sales *	+4.1
Others	+1.5	 Effect of application of new accounting standard (revenue recognition)	(6.3)
 Nisshin Petfood sales	(4.7)
		 NBC Meshtec sales	+1.1
Total	(10.2)	 Facility construction sales, others (Nisshin Engineering, others)	+5.1

* Excluding effect of application of new accounting standard (revenue recognition)

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