Nissin Foods : Summary of Consolidated Financial Statements for the Three Months Ended June 30, 2021

August 5, 2021

Summary of Consolidated Financial Statements

for the Three Months Ended June 30, 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 filing of Quarterly Securities Report: August 5, 2021 (in Japanese)

Scheduled date of dividend payment:	－
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 Three Months of the FY 3/2022 (April 1, 2021-June 30, 2021)

(1) Consolidated Operating Results

(% figures represent year-on-year changes)

					Core operating profit							Profit attributable
			Revenue	Operating profit	Profit before tax	to owners of the
			of existing businesses
Three Months of											parent
	(¥ million)	(%)	(¥ million)	(%)	(¥ million)	(%)	(¥ million)	(%)	(¥ million)	(%)
				+9.9			(22.9)			(24.1)		(22.1)		(34.7)
FY 3/2022		132,457	13,248	13,248		14,003	7,894
FY 3/2021		120,561	+13.9	17,179	+113.1	17,452		+102.3	17,979	+93.5	12,095	+108.5
			Basic earnings
				Diluted earnings
Three Months of			per share		per share
			(¥)				(¥)
FY 3/2022				76.02			75.58
FY 3/2021				116.11			115.47

* Core operating profit of existing businesses

Core operating profit of existing businesses is 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

(2) Consolidated Financial Position
	Total assets	Total equity	Equity attributable to	Equity attributable to owners
	owners of the parent	of the parent to total assets
As of
(¥ million)	(¥ million)	(¥ million)	(%)
June 30, 2021	647,894	415,817	381,926	58.9
March 31, 2021	663,530	421,435	384,016	57.9

2. Details of Dividends

		Cash dividend per share
	End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-end	Total
	(¥)	(¥)	(¥)	(¥)	(¥)
FY 3/2021	－	55.00	－	65.00	120.00
FY 3/2022	－
FY 3/2022 (Forecast)		70.00	－	60.00	130.00

Note: Modifications to the dividend forecast published most recently: No

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 anniversary of the release of CUP NOODLE, in addition to ordinary dividend of ¥ 60.00

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

(% figures represent changes from the previous year)

			Core operating profit			Profit		Basic
	Revenue		Operating profit	attributable to	earnings
		of existing businesses
					owners of the parent	per share
	(¥ 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

Note: Modifications to the forecast published most recently: None

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

Notes:

1. Changes in principal subsidiaries during the Three months of FY 3/2022 (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:

	Three months of FY 3/2022	105,700,000 shares
	FY 3/2021	105,700,000 shares
2)	Number of treasury shares as of the end of:
	Three months of FY 3/2022	2,178,560 shares
	FY 3/2021	1,528,236 shares
3)	Average number of shares during the period:
	Three months of FY 3/2022	103,848,240 shares
	Three months of FY 3/2021	104,170,747 shares

• This summary of quarterly consolidated financial statements is outside the scope of review 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 5 for "(3) Explanation Concerning Consolidated Forecasts" for the conditions of assumptions for the forecast and cautions to use forecast.

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1. Qualitative Information Concerning Three Months Results

1. Qualitative Information Concerning Consolidated Business Results
   Based on the "Mid- to Long-Term Growth Strategy 2030", the Group is working for achieving the Group's vision and

sustainable growth: 1) Strengthen Cash Generation Capabilities of Existing Businesses, 2) EARTH FOOD CHALLENGE 2030 and 3) Pursue New Businesses.

				(Millions of yen)
	Three months of FY 3/2021	Three months of FY 3/2022	Year on year
	Amount		%
Revenue	120,561	132,457	11,896	9.9
Core operating profit of	17,179	13,248	(3,931)	(22.9)
existing businesses
Operating profit	17,452	13,248	(4,203)	(24.1)
Profit before tax	17,979	14,003	(3,976)	(22.1)
Profit attributable to owners of	12,095	7,894	(4,201)	(34.7)
the parent

Note: The Group aims to adopt core operating profit of existing businesses in order to measure the real growth of existing businesses that form the basis for investment in businesses growth by separating the profit or loss from new businesses planned to be invested aggressively and continuously upfront after the FY 3/2022, from the standpoint of mid- to long-term growth strategy. Core operating profit of existing businesses ＝operating profit - profit or loss of new businesses - other income and expenses as non-recurring income and expenses

				(Millions of yen)
	Three months of FY 3/2021	Three months of FY 3/2022	Year on year
	Amount	%
Revenue	120,561	130,404	9,843	8.2
Core operating profit of	17,179	13,107	(4,071)	(23.7)
existing businesses
Note: The figures in FY 3/2022 are converted by the previous fiscal year's foreign exchange rates

The following is an overview of performance by reportable segment.

In the current fiscal year, the Group has changed the method of presenting the Chilled and frozen foods and beverages segment, combined the chilled and frozen food businesses and beverages businesses which was included in confectionery and beverages segment, and the Confectionery segment.

Accordingly, the following amount for the previous fiscal year reflected these changes in reportable segments.

1) NISSIN FOOD PRODUCTS

In terms of sales of bag-type noodles in NISSIN FOOD PRODUCTS, Prime bag-type noodles which include the BAKURETSU KARAMEN series, launched at the end of March 2021 and featured edgy, shocking spiciness and umami flavor contributed to sales. Sales of the NISSIN RAOH series increased as well. In cup-type noodles, sales of the CUP NOODLE PRO series, which was launched in April 2021 with high protein and low sugar content while maintaining good taste, were strong. The NISSIN YAKISOBA U.F.O. series, which featured a simple and filling variation of the recipe CHOMOLANGMA U.F.O., using bean sprouts, which have been in growing demand in recent years, greatly increased sales. However, sales of both bag- and cup-type noodles decreased year on year in reaction to increased demand following the declaration of the state of emergency in April 2020. Sales of cup rice products increased and significantly contributed to sales, thanks to the continued strong performance of the NISSIN CURRY MESHI and the BUKKOMI MESHI series due to the growing individual rice dishes. Profits decreased year on year due to lower sales of bag- and cup-type noodles. Consequently, revenue was ¥ 46,577 million (-3.1%), core operating profit (Note 1) was ¥6,982 million (-19.7%) and operating profit was ¥ 7,012 million (-19.7%) in this reportable segment.

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1. MYOJO FOODS

MYOJO FOODS achieved year-on-year growth in sales of bag-type noodles due to strong growth in the MYOJO CHARUMERA with a breakthrough in the MIYAZAKI KARAMEN, and the contribution of the MYOJO MEGAMI, a new brand. Meanwhile, the sales of cup-type noodles slightly decreased year on year, although the MYOJO CHUKA ZANMAI grew significantly due to the good performance of SURATANMEN and the MYOJO IPPEICHAN YOMISE NO YAKISOBA also performed well. in addition to the contribution of the MYOJO MEGAMI, new brand. Profits decreased year on year, reflecting advertisement expenses utilized from the beginning of the fiscal year and increase of depreciation expenses.

Consequently, revenue was ¥ 9,411 million (-2.6%), core operating profit (Note 1) was ¥996 million (-37.1%) and operating profit was ¥ 1,001 million (-37.8%) in this reportable segment.

1. Chilled and frozen foods and beverages

At NISSIN CHILLED FOODS, sales and profits increased year on year since sales of the MAZEMEN NO TATSUJIN series and chilled noodles were strong, although sales of the TSUKEMEN NO TATSUJIN and the NISSIN NO RAMENYASAN series decreased in reaction to increased demand following the declaration of the state of emergency in April 2020.

NISSIN FROZEN FOODS achieved sales growth, helped by the REITO NISSIN MAZEMENTEI series and the REITO NISSIN MOCHITTO NAMA PASTA series, as well as the mainstay products of the REITO NISSIN CHUKA SHIRUNASHI TANTANMEN OMORI. Meanwhile profits decreased year on year, due to usage of advertisement expenses.

Sales of beverages business decreased year on year due to a reaction to increased demand following the declaration of a state of emergency in April 2020. Meanwhile the PILKUL which is the mainstay brand of NISSIN YORK launched PILKUL 400 through advertising, whose number of lactic acid bacteria increased from 15 billion to 40 billion and sold well. Profits decreased year on year due to higher advertisement expenses etc.

Consequently, revenue was ¥20,216 million (+0.8%), core operating profit (Note 1) was ¥1,230 million (-23.1%) and operating profit was ¥1,323 million (-30.9%) in this reportable segment.

1. Confectionery

In the confectionery business, the GOROTTO GRANOLA of NISSIN CISCO maintaining strong trend contributed to sales, despite the reaction to increased demand following the declaration of the state of emergency in April 2020. Meanwhile sales and profits increased year on year reflecting the three-months performance of KOIKE-YA Inc. as it became a consolidated subsidiary in December 2020.

Consequently, revenue was ¥17,063 million (+123.3%), core operating profit (Note 1) was ¥1,015 million (+4.7%) and operating profit was ¥1,069 million (+9.3%).

1. 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. In the United States, sales of premium products were strong despite a reaction to increased demand following the declaration of a state of emergency in March 2020. As a result, sales of the Americas increased year on year. Meanwhile profits decreased year on year due to higher prices of major raw materials and higher distribution costs, despite increased sales and higher sales of premium products.

Consequently, revenue was ¥ 20,221 million (+14.0%), core operating profit (Note 1) was ¥1,174 million (-38.4%) and operating profit was ¥ 1,189 million (-37.7%) in this reportable segment.

Excluding the impact of currency translation, revenue was ¥19,489 million (+9.8%) and core operating profit was ¥1,123 million (-41.1%). (Note 2)

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1. China

In China, as the market for high value-added products is expanding in mainland China, the Group (NISSIN FOODS CO., LTD. and its subsidiaries) has taken steps to expand its geographical sales areas and strengthen its CUP NOODLES brand. Despite negative repercussions after increased demand from the COVID-19 outbreak in the same period of last year, the increase in sales volume of the CUP NOODLES brands in mainland China and the currency translation effect by local currencies appreciation against Japanese Yen contributed to the increase in revenue, compared to the same period of last year. In terms of profit, significant increase in costs incurred by surge in raw material costs resulted in a decrease in profit over the same period of last year.

Consequently, revenue was ¥ 12,247 million (+6.4%), core operating profit (Note 1) was ¥1,107 million (-27.9%) and operating profit was ¥ 1,073 million (-33.2%) in this reportable segment.

Excluding the impact of currency translation, revenue was ¥11,366 million (-1.3%) and core operating profit was ¥1,020 million (-33.6%). (Note 2)

Revenue in "Others," which includes business segments not included in reportable segments such as domestic other business, Europe and Asia was ¥ 6,720 million (+14.2%), core operating profit (Note 1) was ¥2,106 million (-1.3%) and operating profit was ¥ 2,106 million (+1.9%).

Excluding the impact of currency translation, revenue was ¥6,279 million (+6.7%) and core operating profit was ¥2,104 million (-1.4%). (Note 2)

Note 1 : Core operating profit = operating profit - other income and expenses as non-recurring income and expenses

Note 2 : Compared the figures in FY 3/2021 and the figures in FY 3/2022 converted by the previous fiscal year's foreign exchange rates

1. Analysis of Financial Position
   Note: Refer to pages from 6 to 7 for further information.
2. Explanation Concerning Consolidated Forecasts
   The full-year forecasts of the consolidated financial results for the FY 3/ 2022 remain unchanged from the forecasts that were

announced on May 11, 2021.

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