Nissin Foods : Summary of Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

May 11, 2021

Summary of Consolidated Financial Statements

for the Fiscal Year Ended March 31, 2021

	[Prepared under IFRS, UNAUDITED]
NISSIN FOODS HOLDINGS CO., LTD.
Stock code:	2897
Stock exchange listing:	Tokyo
URL:	https://www.nissin.com/jp/
	https://www.nissin.com/en_jp/
Phone:	[phone]
Representative:	Koki Ando, Representative Director, President and CEO
Contact:	Takashi Yano, CFO

Scheduled date of general meeting of shareholders: June 25,	2021 (in Japanese)
Scheduled date of filing of securities report:	June 25,	2021 (in Japanese)
Scheduled date of dividend payment:	June 28,	2021
Preparation of supplementary documents:	Yes
Holding of financial results meeting:	Yes (For institutional investors and analysts) (in Japanese)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the FY 3/2021 (April 1, 2020-March 31, 2021)

(1) Consolidated Operating Results

(% figures represent year-on-year changes)

	Revenue			Operating profit	Profit before tax		Profit attributable
			to owners of the parent
	(¥ million)	(%)	(¥ million)	(%)	(¥ million)	(%)		(¥ million)	(%)
FY 3/2021	506,107		+7.9	55,532	+34.6	56,233	+31.8			40,828	+39.3
FY 3/2020	468,879		+4.0	41,252	+42.4	42,650	+36.8			29,316	+51.5
						Ratio of equity	Ratio of profit
	Basic earnings		Diluted earnings	attributable to		Ratio of operating
		before tax to total
	per share			per share	owners of the parent		profit to revenue
						to profit		assets
	(¥)		(¥)		(%)				(%)			(%)
FY 3/2021	391.94			389.69		11.5				9.1			11.0
FY 3/2020	281.45			279.93		9.0				7.5			8.8

Reference: Gain on investments accounted for using the equity method: FY 3/2021: ¥ 5,435 million ; FY 3/2020: ¥ 4,543 million

(2) Consolidated Financial Position
					Equity attributable	Equity ratio		Book value per
	Total assets		Total equity		to owners of the	attributable to
				share
						parent	owners of the parent
	(¥ million)		(¥ million)			(¥ million)		(%)		(¥)
FY 3/2021	663,530		421,435			384,016		57.9		3,686.38
FY 3/2020	576,621		354,063			327,994		56.9		3,148.62
(3) Consolidated Cash Flows
	Operating activities	Investing activities		Financing activities		Cash and cash
		equivalents at end of year
	(¥ million)	(¥ million)		(¥ million)			(¥ million)
FY 3/2021	72,714		(26,528)			(19,046)			90,294
FY 3/2020	57,533		(40,413)			(10,142)			60,163

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2. Details of Dividends

		Cash dividend per share					Ratio of dividends to
						Total dividends	Payout ratio	equity attributable to
	End of	End of	End of
	Year-end	Annual	(Annual)	(Consolidated)	owners of the parent
	1st quarter	2nd quarter	3rd quarter
			(Consolidated)
FY 3/2020	(¥)	(¥)	(¥)	(¥)	(¥)	(¥ million)	(%)	(%)
－	55.00	－	55.00	110.00	11,458	39.1	3.5
FY 3/2021	－	55.00	－	65.00	120.00	12,500	30.6	3.5
FY 3/2022	－	70.00	－	60.00	130.00		41.0
(Forecast)		~ 43.7

Year-end dividend of ¥ 65.00 for the FY 3/2021 includes a commemorative dividend of ¥ 10.00 for market capitalization of 1 trillion yen, in addition to ordinary dividend of ¥ 55.00

End of 2nd quarter dividend of ¥ 70.00 for the FY 3/2022 (Forecast) includes a commemorative dividend of ¥ 10.00 for 50th annniversary of the release of CUP NOODLE, in addition to ordinary dividend of ¥ 60.00

3. Forecasts of Consolidated Financial Results for the FY 3/2022 (April 1, 2021-March 31, 2022)

						(% figures represent changes from the previous fiscal year)
				Core operating profit			Profit	Basic earnings
	Revenue		Operating profit	attributable to
		of existing businesses	per share
						owners of the parent
	(¥ million)		(%)	(¥ million)	(%)	(¥ million)	(%)	(¥ million)	(%)	(¥)
FY 3/2022	540,000		+6.7	47,000	－	42,500	(23.5)	31,000	(24.1)	298
	~ 44,500	~ (19.9)	~ 33,000	~ (19.2)	~ 317

Forecasts of consolidated financial results for the FY 3/2022 are disclosed with certain range, in order to actively invest in new businesses within 5 ~ 10% of core operating profit of existing businesses

* Core operating profit of existing businesses

Core operating profit of existing businesses will be disclosed from the FY 3/2022

Core operating profit of existing businesses＝operating profit - profit or loss of new businesses - other income and expenses as non-recurring income and expenses

1. Changes in principal subsidiaries during the FY 3/2021 (changes in specified subsidiaries that resulted in changes in scope of consolidation): None
   -Newly consolidated: None
   -Excluded from consolidation: None
2. Changes in significant accounting policy and changes in accounting estimates:
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies other than 1): None
   3. Changes in accounting estimates: None
4. Number of shares outstanding (common stock)
5. 1. Number of shares outstanding (including treasury shares) as of the end of:

	FY 3/2021	105,700,000 shares
	FY 3/2020	105,700,000 shares
2)	Number of treasury shares as of the end of:
	FY 3/2021	1,528,236 shares
	FY 3/2020	1,529,320 shares
3)	Average number of shares during the period:
	FY 3/2021	104,171,694 shares
	FY 3/2020	104,165,013 shares

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(Reference) Individual (NISSIN FOODS HOLDINGS CO., LTD.) Financial Results for the FY 3/2021 (April 1, 2020-March 31, 2021)

(1) Operating Results

(% figures represent year-on-year changes)

	Net sales		Operating income		Ordinary income			Net income
	(¥ million)	(%)		(¥ million)	(%)			(¥ million)	(%)		(¥ million)	(%)
FY 3/2021	45,239		(11.0)		11,460	(34.9)			12,387	(35.0)		13,463	(22.3)
FY 3/2020	50,824	+14.6		17,602	+52.4			19,062	+47.0		17,333	+1,221.6
	Net income attributable to owners of		Net income attributable to owners of
	the parent per share (primary)		the parent per share (diluted)
					(¥)						(¥)
FY 3/2021					129.25						128.51
FY 3/2020					166.41						165.51
(2) Financial Position
	Total assets	Net assets	Equity ratio			Net assets per share
		(¥ million)			(¥ million)		(%)				(¥)
FY 3/2021		418,082			253,852		60.1				2,411.40
FY 3/2020		369,968			229,083		61.3				2,177.11

Reference: Equity attributable to owners of the parent: FY 3/2021: ¥ 251,199 million; FY 3/2020: ¥ 226,791 million

*This summary of consolidated financial statements is outside the scope of audits by certified public accountants or audit firms.

• Notes for proper use of forecasts and other remarks Disclaimer regarding appropriate use of forecasts:
  Forecasts contain forward-looking statements based on estimates made as of the day of release of these materials. Actual results may differ materially depending on a number of factors including but not limited to potential risks and uncertainties. Please refer to page 6 for "(4) Explanation Concerning Consolidated Forecasts" of "1. Analysis of Operating Results and Financial Position."
  How to obtain supplemental information material:
  The material is available through TDnet and the company's website.

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1. Analysis of Operating Results and Financial Position

1. Qualitative Information Concerning Consolidated Business Results
   During the consolidated fiscal year under review, the global economy was significantly affected by the expansion of coronavirus

disease 2019 (COVID-19). In many cities around the world, the state of emergency and lockdown were declared and corporate profits and personal consumption plummeted. While Chinese economy has recovered to the GDP level before COVID-19, the full-fledged global economic recovery remains uncertain due to unclear prospect of an end of COVID-19.

In Japan, corporate earnings, employment and income conditions deteriorated sharply due to the expansion of COVID-19. Although there were signs of recovery following the lifting of the state of emergency in May 2020, the pace of economic recovery has slowed as the infection has been prolonged. In January 2021, another state of emergency was declared, and the future remains uncertain.

In the instant noodles industry, total worldwide demand increased to more than 100 billion units following from previous year, reflecting growth in demand in many regions. Meanwhile, domestic total demand rose to a record high.

Under this environment, based on the "Medium-Term Management Plan 2021" of which term covers five years from the fiscal year ended March 31, 2017, to realize the improvements of "Earning power through operations" and "Value in capital markets," we have been working on the following strategies: 1) Promoting global branding, 2) Focusing on priority overseas locations, 3) Laying stronger foundations for our domestic profit base, 4) Establishing a second pillar that generates revenue and profit and 5) Developing and strengthening human resources for global management.

				(Millions of yen)
	FY 3/2020	FY 3/2021	Year on year
	(From April 1, 2019	(From April 1, 2020	Amount	%
	to March 31, 2020)	to March 31, 2021)
Revenue	468,879	506,107	+37,227	+7.9
Operating profit	41,252	55,532	+14,279	+34.6
Profit before tax	42,650	56,233	+13,583	+31.8
Profit attributable to owners of	29,316	40,828	+11,511	+39.3
the parent

The following is an overview of performance by reportable segment:

1) NISSIN FOOD PRODUCTS

NISSIN FOOD PRODUCTS achieved year-on-year growth in sales with an increase in sales of bag-type noodles. In bag- type noodles, the sales of the DEMAE ICCHO, the NISSIN YAKISOBA and the NISSIN NO RAMENYA SAN remained strong as 3rd quarter. In addition, the NISSIN RAOH series, which was proposed as finishing off the hot pot with RAOH and the NISSIN KORE ZETTAI UMAIYATSU series, launched in September 2020, in a 3-in-1 pack for young families, contributed to sales as well. Other than bag-type noodles, the ASSARI OISHII CUP NOODLE series and the ASSARI ODASHIGAOISHII DONBEI series were continuously strong. Sales of cup rice products, including CURRY MESHI, which sold more than 100 million meals in total, increased significantly as well. In addition to normal demand, increased demand for products due to the self-restraint caused by the expansion of COVID-19 contributed to sales. Meanwhile, profits increased year on year, due to increase in profit in nature of increase in sales, in spite of higher depreciation expenses associated with the launch of the Kansai Plant as well as an increase in distribution costs.

Consequently, revenue was ¥ 205,624 million (+2.1%) and operating profit was ¥ 32,196 million (+16.8%) in this reportable segment.

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2) MYOJO FOODS

MYOJO FOODS achieved year-on-year growth in sales of bag-type noodles, reflecting strong sales of main brand, the MYOJO CHARUMERA series due to the MIYAZAKI KARAMEN. New brand such as the MYOJO MEGAMI contributed to sales as well.

In cup-type noodles, sales resulted in a slight year-on-year decline reflecting weak sales to convenience stores due to the influence of COVID-19, while sales of the MYOJO MEGAMI contributed to sales.

Profits increased year on year, reflecting an increase in sales volume, cost reduction of sales promotion expenses and general and administrative expenses etc.

Consequently, revenue was ¥ 37,551 million (+2.8%) and operating profit was ¥ 3,183 million (+45.2%) in this reportable segment.

3) Chilled and frozen foods

At NISSIN CHILLED FOODS, overall sales and operating profits increased year on year since sales of its main brand, each series of the GYORETSU NO DEKIRU MISE NO RAMEN, the TSUKEMEN NO TATSUJIN, the NISSIN NO RAMENYASAN, the MAZEMEN NO TATSUJIN and the FRYING PAN HITOTSUDE were continuously well due to increased demand for products caused by the influence of COVID-19.

NISSIN FROZEN FOODS increased sales year on year, helped by stable growth of mainstay products, such as the REITO NISSIN CHUKA SHIRUNASHI TANTANMEN OHMORI, the REITO NISSIN GOOTA series, the REITO NISSIN MOCHITTO NAMA PASTA series and the REITO NISSIN SPA OH PREMIUM series. The increased demand for products caused by the influence of COVID-19 contributed to sales as well. Meanwhile, profits increased year on year, reflecting an increase of sales and an improved productivity due to increased production.

Consequently, revenue was ¥ 61,869 million (+8.0%) and operating profit was ¥ 2,890 million (+104.9%) in this reportable segment.

4) Confectionery and beverages

In the confectionery business, sales increased mainly in the GOROTTO GRANOLA series and the CISCORN BIG series of NISSIN CISCO, as cereals' value earned a high reputation again due to the influence of COVID-19. In addition, the acquisition of KOIKEYA, as a consolidated subsidiary in December 2020 contributed to both sales and profits.

In the beverages business, both sales and profits increased year on year due to strong sales of the mainstay PILKUL series of NISSIN YORK, as heightened health consciousness and the influence of COVID-19 increased those demand. Consequently, revenue was ¥ 56,918 million (+35.7%) and operating profit was ¥ 3,337 million (+52.2%) in this reportable segment.

5) The Americas

The Americas are working to enhance the proposal of premium products aimed at creating new demand, enhancing the profitability of existing products.

Sales of the NISSIN LAMEN, a mainstay product in Brazil, remain strong, and sales of the CUP NOODLES increased as well. In addition, the increased demand for instant noodles due to the influence of COVID-19 also contributed to sales. Steady sales of base products due to the influence of COVID-19 and significant sales growth for premium products due to strong sales of new products in the United States also contributed to the overall sales growth in the segment.

Meanwhile profits decreased year on year due to higher prices of major raw materials and negative impact of foreign exchange rates, despite increased sales and higher sales of premium products.

Consequently, revenue was ¥ 70,873 million (+7.5%) and operating profit was ¥ 4,047 million (-0.8%) in this reportable segment.

6) China

In China, the market for high value-added products is expanding in mainland China. NISSIN FOODS CO., LTD. and its subsidiaries have taken steps to expand its geographical sales areas and strengthen its CUP NOODLES brand. In addition, due to the influence of COVID-19, the stay-at-home economy has increased higher demand for premium instant noodles. In this environment, sales increased year on year, thanks to strong volume in the CUP NOODLES brand in mainland China. Profit increased year on year due to increase in sales volume in mainland China and Hong Kong, and cost reduction associated with increase in volume.

Consequently, revenue was ¥ 48,177 million (+11.8%) and operating profit was ¥ 5,763 million (+18.4%) in this reportable segment.

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