Nisshin Seifun : Supplementary Materials Third 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

Third Quarter of Fiscal 2022

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

II. Net Sales and Operating Profit by Segment ……………… P. 2-5

January 27, 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

800,000					26.7
			23.4
700,000			22.5
600,000	17.7	18.0
500,000
400,000
300,000			536,666	513,974	505,310
200,000	402,550	429,472
100,000
0	3Q	3Q	3Q	3Q	3Q
	FY2018	FY2019	FY2020	FY2021	FY2022

Operating profit (%)

(%)	(Millions of yen)					(%)
30.0	40,000	5.4					6.0
25.0	35,000	5.3			5.2
		4.5
			4.3		5.0
	30,000
20.0
25,000						4.0
15.0	20,000						3.0
10.0	15,000			23,909		26,150	2.0
	21,881	22,681	22,193
	10,000
5.0
5,000						1.0
0.0	0	3Q	3Q	3Q	3Q	3Q	0.0
		FY2018	FY2019	FY2020	FY2021	FY2022

(Millions of yen)				Ordinary profit (%)
45,000
6.5			6.3
40,000																	5.8
35,000
												4.9			4.8
30,000
25,000
20,000
15,000
																									29,384
		26,003				27,126				26,221				24,489
10,000
5,000
0
			3Q				3Q				3Q				3Q				3Q
			FY2018			FY2019			FY2020			FY2021			FY2022

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

7.0	35,000	4.5
	4.2				5.0
	30,000
6.0
		3.7
25,000				3.6	4.0
				3.2
5.0
4.0	20,000						3.0
3.0	15,000						2.0
	10,000
2.0	18,087	18,117	19,951	16,255	18,200	1.0
1.0	5,000
0.0	0	3Q	3Q	3Q	3Q	3Q	0.0
		FY2018	FY2019	FY2020	FY2021	FY2022

[Performance Trends]	Q202112 Q202112 Q202112 Q202112 Q202112		(Millions of yen)
	3Q	3Q	3Q	3Q	3Q	vs. 3Q	Change	FY2022
	FY2018	FY2019	FY2020	FY2021	FY2022	FY2021	(%)	Forecast
Net sales *1	402,550	429,472	536,666	513,974	505,310	(8,663)	98.3%	670,000

Overseas sales	71,051	77,259	125,492	115,767	134,778	19,010	116.4%	177,800
(%)	17.7%	18.0%	23.4%	22.5%	26.7%	4.1%			26.5%
Operating profit *1	21,881	22,681	23,909	22,193	26,150	3,957	117.8%	29,200
(%)	5.4%	5.3%	4.5%	4.3%	5.2%	0.9%			4.4%
Ordinary profit *1	26,003	27,126	26,221	24,489	29,384	4,894	120.0%	31,300
(%)	6.5%	6.3%	4.9%	4.8%	5.8%	1.0%			4.7%
Profit attributable to owners of	18,087	18,117	19,951	16,255	18,200	1,944	112.0%	19,300
parent *1
4.5%	4.2%	3.7%	3.2%	3.6%	0.4%			2.9%
(%)

Capital expenditures	15,485	12,556	15,968	11,040	12,754	1,713	115.5%
(construction base)
11,405	10,980	15,551	16,355	17,025	669	104.1%
Depreciation and amortization
(Reference)
Operating profit before	23,559	24,364	30,242	28,236	32,769	4,533	116.1%
amortization of goodwill, others *1
1,678	1,683	6,333	6,043	6,619	575	109.5%
Amortization of goodwill, others *2

21,000

21,000

38,062

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.)

-1-

II. Net Sales and Operating Profit by Segment

[3Q FY2022 Performance]

[Net Sales by Segment]

					(Millions of yen)
3Q	(Composition	3Q	(Composition	Difference from	YoY
FY2021	FY2022	previous year	Change
ratio)	ratio)

Flour Milling	214,697	42%	229,410	45%	14,713	106.9%
Processed Food	162,856	32%	138,343	27%	(24,513)	84.9%
Prepared Dishes and Other Prepared Foods	109,493	21%	105,872	21%	(3,620)	96.7%
Others	26,926	5%	31,683	7%	4,756	117.7%
Total	513,974	100%	505,310	100%	(8,663)	98.3%
Overseas Sales (included in sales data above)			(Millions of yen) Currency Exchange Rates	(Yen)

	3Q		3Q	Difference from	Impact of	YoY
		currency
	FY2021		FY2022	previous year	exchange rate	Change
					fluctuations
Flour Milling	100,520		118,326	17,806	8,964	117.7%
Processed Food	11,810		12,521	711	504	106.0%
Prepared Dishes and Other Prepared Foods		-	-	-	-	-
Others	3,437		3,930	493	126	114.3%
Total	115,767		134,778	19,010	9,595	116.4%

(Analysis of Net Sales Difference from Previous Year)

	3Q	3Q
	FY2021	FY2022
USD	106.5	110.7
CAD	78.6	88.6
AUD	73.0	82.7
NZD	68.5	78.0
THB	3.4	3.4

(Billions of yen)

3Q FY2022 (Difference from previous year)

Flour Milling	+14.7	 Domestic wheat flour shipments (up 1.5% YoY)	+1.6
		 Flour price revisions, others accompanying revised wheat prices	+1.4
		 Bran prices	+1.2
		 Overseas sales, others	+22.2
		 Effect of application of new accounting standard (revenue recognition)	(11.7)
Processed Food	(24.5)	 Processed Food sales *	(2.5)
		Household-use flour sales	(0.4)
		Prepared mix product sales	+0.1
		Pasta-related sales	(0.4)
		Frozen food sales	(0.6)
		Overseas processed food sales	+2.4
		Other	(3.6)
		 Oriental Yeast sales *	+2.9
		 Nisshin Pharma sales *	(1.8)
Prepared Dishes and Other Prepared Foods	(3.6)	 Effect of application of new accounting standard (revenue recognition)	(23.1)
 Prepared dishes and other prepared foods sales *	+5.8
Others	+4.7	 Effect of application of new accounting standard (revenue recognition)	(9.4)
 Nisshin Petfood sales	(6.5)
		 NBC Meshtec sales	+1.1
		 Facility construction sales, others (Nisshin Engineering, others) *	+10.2
Total	(8.7)	 Effect of application of new accounting standard (revenue recognition)	(0.1)

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

-2-

[3Q FY2022 Performance]

[Operating Profit by Segment]

					(Millions of yen)
3Q	(Composition	3Q	(Composition	Difference from	YoY
FY2021	FY2022	previous year	Change
ratio)	ratio)

Flour Milling	4,640	21%	7,704	29%	3,064	166.0%
Processed Food	12,655	57%	11,244	43%	(1,410)	88.9%
Prepared Dishes and Other Prepared Foods	1,593	7%	3,273	13%	1,680	205.5%
Others	3,232	15%	3,804	15%	571	117.7%
Adjustments	71	0%	123	0%	52	－
Total	22,193	100%	26,150	100%	3,957	117.8%

Amortization of goodwill, others (Deducted from [Operating Profit by Segment] above)

	3Q		3Q	Difference from
	FY2021		FY2022	previous year
Flour Milling	4,818		5,394	575
Processed Food	48		48		-
Prepared Dishes and Other Prepared Foods	1,176		1,176		-
Others		-	-		-
Total	6,043		6,619	575
Overseas Operating Profit (included in [Operating Profit by Segment] above)		(Millions of yen)

3Q 3Q FY2021 FY2022

Impact of Difference from currency previous year exchange rate

fluctuations

YoY

Change

Flour Milling	(337)	1,293		1,630	(102)	-
Processed Food	2,171	2,015		(156)	126	92.8%
Prepared Dishes and Other Prepared Foods	-		-	-	-	-
Others	61	341		280	13	558.7%
Total	1,895	3,650		1,754	37	192.6%

(Analysis of Operating Profit Difference from Previous Year)

			(Billions of yen)
			3Q FY2022
			(Difference from
			previous year)
Flour Milling	+3.1
 Domestic wheat flour shipment volume	+0.3
		 Sales expansion costs	+0.1
		 Bran prices	+1.1
		 Cost related	+0.0
		 Overseas subsidiaries, others	+1.6
Processed Food	(1.4)	 Shipment volume	+0.1
		 Sales expansion costs	(1.2)
		 Cost related	(0.2)
		 Overseas subsidiaries, others	(0.1)
		(incl. Oriental Yeast, Nisshin Pharma exports)
Prepared Dishes and Other Prepared Foods	+1.7	 Increase in sales, others	+1.7
Others	+0.5	 Sales	+2.1
Adjustments	+0.1	 Cost related, others	(1.6)
 Intersegment transaction eliminations	+0.1
Total	+4.0

-3-

[Performance Forecast]

*While consolidated business forecasts remain unchanged from figures announced on July 27, 2021, the breakdown of net sales and operating profit by reportable segment have changed in the first nine months of the fiscal year ending March 31, 2022.

[Net Sales by Segment]

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

Flour Milling	285,798	42%	306,500	46%	20,701	107.2%
Processed Food	214,710	32%	182,000	27%	(32,710)	84.8%
Prepared Dishes and Other Prepared Foods	142,747	21%	136,500	20%	(6,247)	95.6%
Others	36,240	5%	45,000	7%	8,759	124.2%
Total	679,495	100%	670,000	100%	(9,495)	98.6%

(Millions of yen)

Previous	Difference
forecast
from previous
(Announced in
Oct. 2021)	forecast
301,000	5,500
185,000	(3,000)
139,000	(2,500)
45,000	-
670,000	-

Overseas Sales (included in sales data above)						(Millions of yen)		Currency Exchange Rates	(Yen)
	FY2022	Difference from	Impact of	YoY		Previous	Difference			FY2022
FY2021	currency		forecast		FY2021
	from previous
Forecast	previous year	exchange rate	Change		(Announced in		(Projection)
		forecast
			fluctuations			Oct. 2021)

Flour Milling	134,913	154,900	19,986	9,192	114.8%	149,800		5,100				USD	105.9	108.0
Processed Food	16,008	17,200	1,191	273	107.4%				17,200			-			CAD	79.4	86.0
Prepared Dishes and Other Prepared Foods	-	-	-	-	-					-		-			AUD	74.9	84.0
Others	4,705	5,700	994	48	121.1%				5,700			-			NZD	70.2	74.0
Total	155,626	177,800	22,172	9,513	114.2%				172,700		5,100				THB	3.4	3.5

(Analysis of Net Sales Difference from Previous Year)

			(Billions of yen)
			FY2022 Forecast
			(Difference from
			previous year)
Flour Milling	+20.7
 Domestic wheat flour shipments (up 0.8% YoY)	+1.2
		 Flour price revisions, others accompanying revised wheat prices	+8.2
		 Bran prices	+1.5
		 Overseas sales, others	+26.8
		 Effect of application of new accounting standard (revenue recognition)	(17.0)
Processed Food	(32.7)	 Domestic processed food sales *	(6.6)
		 Overseas processed food sales	+2.9
		 Oriental Yeast sales *	+3.1
		 Nisshin Pharma sales *	(2.1)
		 Effect of application of new accounting standard (revenue recognition)	(30.0)
Prepared Dishes and Other Prepared Foods	(6.3)	 Prepared dishes and other prepared foods sales *	+6.7
Others	+8.8	 Effect of application of new accounting standard (revenue recognition)	(13.0)
 Nisshin Petfood sales	(7.6)
		 NBC Meshtec sales	+0.9
Total	(9.5)	 Facility construction sales, others (Nisshin Engineering, others)	+15.5

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

-4-