NH Foods
Group
Fact Book

2021
The History of the NH Foods Group1

Vision2030 and Materialities

3

Medium-Term Management Plan

5

Overview

7
・・・

Processed Foods Business Division

7

Fresh Meats Business Division

8

Overseas Business Division

9

Other Operations

10

・・・

https://www.nipponham.co.jp/eng/

Printed in Japan

Consolidated Financial Statements (past nine years)

11

Consolidated Financial Summary

13

Segment Information

16

Consolidated Financial Statements (IFRS)

18

Corporate Data—Stock Information

21

NH Foods Group

Fact Book 2021

The History of the NH Foods GroupPursuing customer satisfaction
by providing the Joy of Eating

Net sales¥
Business domains
Processed Foods
Business Division

Page 7

Fresh MeatsBusiness Division

Page 91970 S

1990 S

2000 S2010 S

2020 S

Supply of quality protein
amid the food shortagesof the postwar era

Contribution to the evolutionof new food culture throughexpansion into new foodcategories and overseas markets

Expansion of product lineup in
step with lifestyle diversification

Improvement of customer satisfaction
through a management commitment
to being number one in quality

Creating new paths to the futureof food through the introductionof high-added-value products

Focus on the future of food
10–20 years into the future

Medium-Term
Medium-Term
Medium-Term
Management Plan 2020 Management Plan 2023 Management Plan 2026

New Medium-Term Management Plan (Part 1–5)

SocialEnvironment

Overseas
Business Division

Page 81940 S• Rapid economic growth• Westernization of the Japanese diet1942 Establishment of the Tokushima Meat
C

Processing Plant
Introduction of new food culture in
Japan with the start of ham andsausage production

1963 Merger between Tokushima Ham Co., Ltd.
and Torisei Ham Co., Ltd., company nameCchanged to Nippon Meat Packers, Inc.

Liberalization of pork
• Shift to nuclear families • imports
Growth of the restaurant• industry
Shift of women into the• paidwork force

1970 Establishment of the Fresh Meats BusinessF

bite-sized skinless wiener sausages

1972 Entry into the processed food business inP1967 Promotion to the 1st Section of the

response to the diversification of Japan’s
food culture

processing business with the establishmentof Nippon Pork Co., Ltd.
(now Nippon Food Packer Kagoshima, Inc.)

Establishment of the Nippon-Ham Fighters
Baseball Club Co., Ltd., marking the group’s
entry into the professional sports business(now Hokkaido Nippon-Ham Fighters,
Baseball Club Co., Ltd.)OF

of Day-Lee Meats, Inc., of Los Angeles, USA(now Day-Lee Foods, Inc.)

1988 Creation of an integration system inAustralia through the acquisition of
Whyalla Feedlot

1969 Establishment of the Consumer Delegate

Committee System as the basis of a uniquemonitoring structure

1989 Establishment of Thai Nippon Foods

Co., Ltd., expansion of processed food
manufacturing facilities

1981 Entry into the seafood processing business withP

the acquisition of the Marine Foods Corporation

Launch of Thin Slice Hams, an ultrathin sliced
ham product for health-conscious consumers

Net Sales
Total market value

1997 Launch of the apilight range

2002 Implementation of management reformsCFof allergen-free products

1992 Launch of the yogurt and lactic acidP

probiotic beverages business through thetakeover of the business of Kansai Luna, Inc.
(now Nippon Luna, Inc.), a pioneer of theyogurt beverage business in Japan

1993 Creation of a system for rapid deliveryFof high-quality fresh meats, establishmentof the 100th business site in the
Nippon Food GroupF

and creation of the Compliance Promotion
Division following the discovery of labelingirregularities within the NH Foods Group

Launch of the Sakurahime
range as a major brand ofJapanese-produced
chickenEstablishment of Nippon Logistics Center, Inc.,
one of Japan’s biggest logistics centers, toenhance the NH Foods Group’s rapid
delivery capacity for fresh meat2003 Acquisition of shareholding inP

Hoko Suisan Co., Ltd. (now Hoko Co., Ltd.),
expansion into the cheese business• UN Sustainable Development Summit• Signing of the Paris Agreement

C

Environmental Policy

C

Launch of products with carbon
footprint labelingP

Start-up of the Irodori Kitchen seriesof loin ham products developed withthe emphasis on aroma and flavor

Total market value¥

2013 Launch of Sucre et Sucre (now SUCRE CAFÉ)P

range of convenient but delicious
breakfast foods

488.4

billion(FY2020)2014 Adoption of updated group brandC2015 Acquisition of Ege-Tav Ege Tarım
O

2004 Launch of theC• COVID-19 pandemic

2011 Formulation of NH Foods Group

Minna-no-Shokutaku seriesof allergen-free products

1994 Launch of the Chuka Meisai series ofP

easy-to-prepare authentic Chinese meals

1995 Entry into the seasoning extractPbusiness with the establishment of
Nippon Pure Food, Inc.

1997 Start of Omugi-gyu (grain-fed cattle)Ofattening at the Whyalla Feedlot
in Australia

2005 Adoption of a group brandLaunch of Glucosamine Chondroitin EX,Ca health supplement formulated to utilize
the full benefits of the bounty of nature

Hayvancılık Yatırım Ticaret Ve Sanayi
A.S., a poultry hatcheries business inTurkey, in response to increasing
demand for chicken driven byheightened health consciousness

2006 Launch of the Domestic PremiumP

Utsukushi-no-Kuni range of gift products
developed using the integration system

2016 Establishment of the Overseas Business
O

DivisionC

Identification of the five CSR material issues

2020 Launch of NatuMeat in response toP

growing demand for meat substitutes

C

Declaration of support for therecommendations of the TCFD

C

Admission to RSPO membershipP

2021 Formulation of Vision2030—
C“Unleash new potentials for protein”

2017 Expansion of the beef supply networkOthrough the acquisition of ashareholding in Breeders &Packers Uruguay S.A. (BPU)

C

Formulation of the
NH Foods Group CSR
Procurement Policy

1985 Launch of SCHAU ESSEN coarse-ground pork
wieners for authentic sausage aficionados

1986 Formulation of NH Foods Corporate Philosophies,
Management Principles, and Action GuidelinesC
NH Foods Group | Fa ct Book 2 0 2 1

Development
Center in Tsukuba, Ibaraki as a base forresearch relating to food safety andquality and health foods/ingredients

Growing consumer pressure for improved food• safetyand reliability• Japan’s first BSE outbreak1977 Start of overseas expansion with the acquisition

1968 Start of in-house production of chicken
C

C

1973 Expansion into the pork production andCOsaka Securities Exchange and Tokyo
Stock Exchange

1991 Completion of the Research andcompanies and development of
nationwide sales networks

FC• Liberalization of imports of beef and oranges• Growth of the ready-made meal market

1970-1990 Establishment of fresh meat sales

1966 Launch of the Winny range of deliciousP

Department
Establishment of Japan Food Corporation

billion(FY2020)

Since its founding in 1942, the NH (Nippon Ham) Foods Group has created new foodculture by responding to changing consumer needs, and by expanding the potentialof food through the development of new categories. We aim to achieve further growthunder Vision2030, which we formulated in 2021 with the theme of “unleash new
potentials for protein.”11,176.1

2019 Introduction of the SCHAU ESSEN
P

series as a brand extension

C: Company-wideP: Processed Foods Business DivisionF: Fresh Meats Business DivisionO: Overseas Business Division

NH Foods Group | F a c t B o o k 2 0 2 12

Vision2030 and Materialities

Our Vision for the
Joy of Eating in 2030

Vision2030

Unleash new potentials for protein

Throughout its history, the NH Foods Group has explored the potential of protein in a continuing quest to fulfill
its corporate commitment to enhancing the Joy of Eating. As part of our ongoing response to a rapidly changing
business environment, we have recently formulated Vision2030, in which we define our aspirations for theachievement of social and business sustainability in the period to 2030. We have also identified the Five Materialities,
which encapsulate the social issues that need to be overcome in order to realize the goals in Vision2030.

NH Foods Group will unleash new ideas beyond existing domains
to expand new potentials for protein as the power of life.
We will endeavor to create diverse dietary lifestyles
so people can experience the Joy of Eating more freely,
while ensuring a stable supply of food with respect to the environment and society.

The Five Materialities
Materialities

Stable procurement
and supply ofproteins

Food
diversificationand healthCo-creation andshared prosperity withlocal communities andsociety as a wholethrough food and sports

Employeedevelopment andrespect for diversity

Social issues
Stable procurement and• supplyof proteins

Main indicators and policies

CSR procurement (By FY2030, inform important primary suppliers• ofPromote
policies and have 100% SAQ* implementation, disseminate policies
1

to important secondary suppliers and implement SAQ)
Implementation of animal welfare initiatives
Develop and utilize new technologies such as smart livestock farming• Greater choice of protein••
Expand sales of plant-derived protein products• (FY2030
shipment amount: ¥10 billion)• Food safety and reliablty

Promote acquisition of third-party certification• (FSSC22000,
SQF, BRC, JFS, etc.)• Food allergy support

Expansion of and enlightenment regarding food allergy-related• products(FY2030 shipment amount: ¥4 billion)• Health promotion

Research and commercialization of new ingredients to improve cognitive• function(supply equivalent of 3 million meals a year by FY2026)• Food diversification

Develop and sell products that respond to a diverse range of cultures,• religions,etc.

Reduce CO emissions from fossil fuels by at least 46% by FY2030• Responding to climate change • (comparedto FY2013)*
Reduce water consumption by 5% by FY2030• (comparedto FY2019: Basic unit per production quantity)*
Resource saving and• recycling
Reduce waste emissions by 5% by FY2030• (comparedto FY2019: Basic unit per production quantity)*• Achieve a waste recycling rate of at least 92% by FY2030*• Addressing biodiversity• 100% use of RSPO-certified palm oil by FY2030 (including Book & Claim )2

2

Contributing toa sustainable
environment

Co-creation andshared prosperity
with local
communities andsociety as a wholethrough foodand sports
Employeedevelopment andrespect for diversity

2

2

2

Local community• development

Enhancing job satisfaction• for
employees• Respect for diversity

Promote activities for co-creation with local communities through• sports(new HOKKAIDO BALLPARK, sports/food education classes, etc.)
Promote community contribution activities, including cultural activities• (cooperationand clean-up activities for local events, etc.)
Promote social welfare activities through food (supplying food to food• banksand “Kodomo Shokudo”, etc.)• Support for job satisfaction• Foster a corporate culture that encourages employees to take on challenges• Promote a diverse range of working styles
Education regarding human rights policies and establishment of human• rights
due diligence system*1 SAQ: Self-Assessment Questionnaire. *2 Medium-term environmental targets are for Japan only.

3

NH Foods Group | Fact Book 2021

NH Foods Group | F a c t B o o k 2 0 2 1

4

Medium-Term Management Plan

We aim to maximize corporate value bycontributing to the solution of social issues
through our business activities.
We have formulated management policies designed to realize the goals in Vision2030 over the next six years. We aim to
maximize our corporate value by combining the improvement of our social value through initiatives guided by the Materialities,
with the improvement of business value through our business strategies.

Medium-Term Management Plan 2023

Shifting to sustainable business models
through the reinforcement and restructuringof existing businesses
79.0

Numerical Plan

Medium-Term Management Plan 2020

Business profit (¥ billion)

Numerical Plan

Business profit (¥ billion)

Business profit ratio

43.8

38.3

3.8%

61.0

56.0

52.0

50.0

3.8%

4.0%

3.6%

3.1%

52.4

52.4

4.5%

4.5%

FY2018 (Plan)

FY2018 (Results)

FY2019 (Plan)

FY2019 (Results)

FY2020 (Plan)

FY2020 (Results)

ROE

7.5%

4.8%

7.3%

4.8%

7.0% or more

7.8%

ROIC

—

4.9%

—

5.3%

5.5% or more

5.9%

Overview of the Medium-Term Management Plan 2020

Fresh meatsbusiness

Affiliated business

6.0%

5.0%

4.3%

Medium-Term
Management Plan 2026

Medium-Term Management Plan 2023
FY2021 (Plan)

FY2022 (Plan)

FY2023 (Plan)

FY2026 (Plan)

FY209 (Plan)

ROE

7.8%

6.8%

7.3%

8.0%

9.0% or more

10.0% or more

ROIC

5.9%

5.1%

5.3%

6.0%

7.0% or more

8.0% or more

Processed
Foods Business

Fresh MeatsBusiness

Overseas BusinessNew businessand cross BaseballClub Business

Management policy 1: Shift to a sustainable business model with profitability
Strengthen procurement and sales capabilities / Establish a muscular manufacturing profit structure from a company-wide
optimization perspective / Expand business from a marketing perspective / Clarify the functions of each company andimprove competitivenessOverseas businessBusiness policy 2: Create value through dialog with consumers

Business strategies

Functional strategies

Strategy formulation and promotion / Business segment sustainability improvement /Internal and external communications

High-level management for No. 1 quality

Formulate and implement growth strategies focused on promising areas

New businesses (1) Entertainment, (2) Wellness, (3) Ethical) / Baseball club businessBusiness policy 4: Change gears in overseas market deployment
Business policy 5: Pursue sustainability

Management policy 2: Establish a growth model for Overseas Business

Management policy 3: Provide new value through new products and services

Business policy 3: Enhance and develop technological capabilities for conceptualizing and realizing the future of food

Functional strategies

52.0

FY2020 (Results)

Business policy 1: Strengthen profitability by improving the efficiency of existing businesses

Management
strategies

4.1%

Overview of the Medium-Term
Management Plan 2023

Building systems that pave the way to the future
Processed
foods business

48.0

Medium-Term
Management Plan 2020

Medium-Term Management Plan 2020

Theme

Business profit ratio

Cross-departmental
promotion strategies

Management policy 4: Strengthen corporate functions to achieve the Vision
DX Promotion / Formulate company-wide strategies and strengthen promotion functions / Strengthen R&D functions /Strengthen human resource management

Cross-business strategies / New business strategies / Hokkaido project / Corporate communications strategies
No. 1 management with a high level of quality and corporate governance(Improved product, management and human resource quality / Ongoing strengthening of compliance and governance)

We are realizing our strategies by building systems that pave
the way to the future. Our efforts to strengthen profitability by
improving the efficiency of existing businesses have resulted in
profitability improvements through the extension of key brands
in the Processed Food Business, the expansion of production
structures in the Fresh Meats Business, and increased sales ofbrand meats. There have also been indications of improvementin our Overseas Business operations. Benefits from our focus on
creating value through dialog with consumers include an
improvement in product development capabilities through5

NH Foods Group | Fa ct Book 2 0 2 1

the use of big data analysis and other methods. Our policy ofenhancing and developing technological capabilities forconceptualizing and realizing the future of food has resulted in
the launch of the smart pork project and the start of R&D focusing
on cultured meat, as well as the acquisition of a patent basedon research into the use of an imidazole peptide to improve
cognitive functions, including memory retention. Under ourpolicy of pursuing sustainability, we have declared support forand joined various international initiatives, including the TCFD.

Medium-Term Management Plans 2023 and 2026 cover a
six-year time span. They were formulated from a company-wide
perspective with the aim of strengthening structural reforms
focused on existing businesses, pursuing sustainability, andnurturing businesses in growth areas. Under Medium-Term
Management Plan 2023, we will work to improve productivity
and ROIC through KPI management and the use of DX. We also
aim to reduce risks, expand opportunities, and transition tosustainable business models, while responding to social issues

through activities based on the Materialities. At the same time,
we will leverage our history and the strengths of our existing
businesses to drive expansion into growth areas. Efforts tostrengthen our business base will center on continual businessreforms leading to the realization of Vision2030 throughsustained enhancement of the quality of our products, humanresources, and management based on our management
commitment to being number one in quality, combinedwith further enhancement of corporate governance.

NH Foods Group | F a c t B o o k 2 0 2 1

6

Overview

Processed
Foods
Business
Division

Responding to diverse needs through productdevelopment from a consumer perspective
The Processed Foods Business Division has built an extensive range of long-selling products and productswith top market shares, especially ham, sausages, processed foods, and dairy products. It also contributes tofood culture in other areas, such as seafood and seasoning extracts, by using our advanced productdevelopment capabilities to respond to consumer needs. Under Medium-Term Management Plan 2023, we
will work to improve productivity in our manufacturing plants and strengthen existing businesses, while also
taking up challenges in new business areas. We will use our advanced product development capabilities to
respond to demand in the areas of pre-cooked and home-use foods, and the needs of health-conscious
consumers. We will also expand sales of NatuMeat and develop allergy-care products and food productsthat can be stored at room temperature.
Share of Net Sales

Supporting dietary lifestyles throughthe development of a sustainable value chain
The Fresh Meats Business Division has built an integration system covering all stages from the productionof pork and chicken through to sales, together with fresh meat procurement networks and food company
sales networks in Japan and overseas. We currently handle one-fifth of all meat sold in Japan in volume
terms. Under Medium-Term Management Plan 2023, we are working to achieve further enhancement ofour procurement and marketing capabilities. We will strengthen our procurement capabilities both byincreasing in-house production and also by utilizing outside sources. Enhancements to our marketing
capabilities will include differentiation through the development and introduction of branded meats. We
will also implement measures that contribute to the global environment and society, leading to thecreation of a sustainable value chain.
Share of Net Sales

Net Sales / Business Profit(fiscal year ended March 2021)

Net sales(fiscal year ended March 31, 2021)

Business profit(¥ billion)(¥ billion)

600

35.4

Fresh MeatsBusiness
Division

489.4

450

18.0

300

%

150
0
3/19

Net sales

Business profit(¥ billion)

40

800

30

600

47.5

(¥ billion)

656.7
41.2

60
45

400

30

10

200

15

0

0

20

%

3/21

3/20

Net Sales / Business Profit

0
3/19

3/20

3/21

Strengths of each value chain

Procurement of
raw materials
Product development

Domestic
fresh meatbrandsOur domestic and global procurement networks ensure reliability of supplies.
The keys to our ability to develop products that match consumer needs are our uniquemonitoring structure based on the Consumer Delegate Committee System, and our advanced
R&D capabilities.

Brands Handled
Imported
fresh meatbrands

We combine advanced quality assurance technology with sophisticated mass-production
systems designed to recreate every delicious flavor.
Ham andsausage production

Processed foodproduction

Dairy products, seafood,meat extracts, andprimary processed foods

Shimabara-Wagyu
domestically
produced beef

Genmai-gyu
domestically
produced beef

Mugikomachi
domestically
produced pork

Sakurahime
domestically
produced chicken

Australian Omugi-gyu

US-produced
Corn-Fed Pork

Thai-produced
Herb Soiku Chicken

Italian Dolce Porco

Strengths of each value chain

Production

Consumerproducts
SCHAU ESSENThe Chuka Meisai seriesísey SKYR

Commercial
products
Arabiki Pork Frankfurters

Logistics
Sales

External customers

7

NH Foods Group | Fa ct Book 2 0 2 1Park cutlet using Sangento

Fresh seafood

Our delivery network covers the whole of Japan.
We maximize customer satisfaction by combining multiple sales channels with sophisticatedproposal, sales, and marketing capabilities.

Mass retailers, department stores, convenience stores, drugstores, manufacturers of prepareddishes, restaurants, processed food manufacturers, butcher shops

Production andbreeding

We ensure reliable supplies of raw materials through our production bases in Japan, Australia,
and other countries, all of which maintain high standards of quality and safety management.

Processing

With our own production plants, we are able to supply extremely fresh meat processed tomeet a wide range of customer needs.

Procurement

Our supply-demand adjustment capabilities are backed by our ability to procure various
types of livestock reliably from a wide range of sources in Japan and overseas.

Logistics

Our fresh meats logistics centers are among the biggest in Japan. These facilities play a pivotal
role in our just-in-time supply capabilities.

Sales

External customers

With our own nationwide sales network, we are able to respond effectively to customer needs.

Mass retailers, department stores, convenience stores, drugstores, manufacturers of prepareddishes, restaurants, processed food manufacturers, and butcher shops

NH Foods Group | F a c t B o o k 2 0 2 1

8Overview

Overseas
Business
Division

Offering food ideas from various countries andregions through our global business operations
The Overseas Business Division is responsible for business development in Asia, Europe, the Americas, andAustralia. In addition to exports to Japan, local sales, and sales to third countries, we also develop products
based on local food culture. We use know-how developed in Japan to provide a wide variety of products
and services. Under Medium-Term Management Plan 2023, we will further stabilize our profit base by
restructuring existing businesses. We will work to expand sales through initiatives to increase exports toJapan and local sales, and through increased marketing of processed foods, especially in North Americaand ASEAN.

Share of Net Sales

Net Sales / Business Profit(fiscal year ended March 31, 2021)

Net sales

Business profit(¥ billion)(¥ billion)

300

16.2

%

223.6

15

200

10

100

5

0

-0.1

−100

As the main R&D facility for the NH Foods Group, the Research and Development Center engages
in research targeted toward the creation of delicious foods, and contribution to waste reduction andthe development of the recycling society. Its activities are guided by the four visions described below.
Four Visions for the Research and Development Center

Sustainable Production of Food

The Center is working toward the evolution of integration technology through R&D in various areas, including
the scientific investigation of delicious flavors, the development of technology to improve farm productivity, andR&D focusing on the well-being of livestock and the global environment.

Happy Food, Happy LifeIn addition to research relating to food allergens and functional ingredients that contribute to health maintenanceand enhancement, the Center also aims to use knowledge gained through nutritional support for athletes tocontribute to the creation of a healthier society through food and sport.

World-leading Expertise inFood Safety

The Center is the NH Foods Group’s main unit for technology development and guidance in the field of foodsafety inspection technology. Its activities include the development of detection technologies for allergens,harmful microorganisms, toxins, and harmful residues.

Creating New Value

The Center develops commercial products based on a variety of food ingredients, such as collagen and placental
extracts. It has obtained a patent for an imidazole peptide with memory maintenance and improvement
functions and will now focus on the development of functional products.

0
−5

3/19

3/21

3/20

Hokkaido
Nippon-Ham FightersP

C PM S

EuropeB

Products handled
by region

P

Contributing to mental and physical healththrough sports
NH Foods Ltd. manages and supports Hokkaido Nippon-Ham Fighters, a professional baseballteam, as the team’s general partner. We are also building the Hokkaido Ballpark, which isscheduled to open in 2023, as a new home for the team. Through these activities, we aim to
expand profits while also contributing to the regional community.

ASEAN
B

Sharing the Joy of Eating through researchand development

Research andDevelopment CenterNorth and Central America
C PM S

B

Australia

P

C PM SSouth America
B

B

P

C PM S
Participation in the management of a professional sports teamConstruction of the Hokkaido Ballpark

Group Network

B : Beef

P : Pork

C : Chicken PM : Processed meats

S : Seafoods

569

business sites in

19

countries and regions worldwide
The Americas

Asia
Europe, Middle East

Brands handled

USA, Chile, Brazil,
Mexica, Uruguay, Canada

Japan, China, Taiwan, Thailand,
Vietnam, Singapore, Malaysia,
Indonesia, South Korea

United Kingdom, Turkey, Russia

Number of business sites(sites)(consolidated, as of April 2021)

Farms

External customers

Sales in Japan, local sales, and exports to third countries

29,390Australasia
Australia

employees(22,615 in Japan, 6,775 overseas)

9

NH Foods Group | Fa ct Book 2 0 2 1

Breeding facilities
Production facilities
Logistics offices
Sales offices
Research and testing facilities
Total

Japan

Overseas

126
2
72
31
248
3
482

31
22
3
31
87

Notes: 1. As of April 2021
2. Includes subsidiaries by
the equity method
3. Names of countries
include resident offices

NH Foods Group | F a c t B o o k 2 0 2 1

10

Consolidated Financial Statements (past nine years)
NH Foods Ltd. and Subsidiaries
For the Years Ended March 31IFRSUSGAAP(¥ million)

3/13

3/14

3/15

3/16

3/17

3/18

3/18

3/19

3/20

3/21

¥ 1,011,619

1,110,766

1,199,956

1,229,324

1,202,293

1,269,201

1,258,463

1,234,180

1,229,826

1,176,101

Operating income

30,44736,08947,77049,20753,802

49,218————

Profit before tax[Net profit for the period from continuing operations before income taxes, etc.]

30,55235,673

43,79735,30949,11250,45552,79830,26727,03948,874

Profit attributable to owners of the parent[Net profit attributable to owners of the parent]

16,45924,52431,04821,77935,004

37,14737,552

19,561

19,21432,616

Net sales

Business profit

—

—

—

—

—

—

50,58938,311

43,772

52,426

Total assets

610,293627,220

661,567

682,855

720,276755,076

734,528

741,388768,861

825,405

Total equity attributable to owners of the parent

293,414

320,984

353,664

356,353

404,126

440,793

417,982

401,014404,414433,595

Interest-bearing liabilities

149,821

144,901

136,758

154,583

138,284

110,948

111,401

147,009

176,493

193,750

Cash flows from operating activities

37,407

32,952

29,68152,53565,25454,62653,28430,84465,46482,518Cash flows from investing activities(22,384)(27,021)(31,517)(49,139)(38,271)(49,006)(48,194)(45,110)(36,728)(57,827)(14,266)

28,736

24,691

Free cash flow

15,023

5,931(1,836)

3,396

26,983

5,620

5,090

Cash flows from financing activities(10,964)(9,373)(17,187)

8,182(11,439)(27,508)(27,110)

2,932(3,077)(14,934)

Capital expenditures

33,285

29,15235,69436,79943,76541,466

41,20147,82047,80282,902

Depreciation and amortization

19,32318,64918,951

19,445

19,765

21,234

20,714

22,41733,03833,939¥ 182.94¥ 248.02¥ 297.70¥ 245.56¥ 343.59¥ 348.46¥ 352.26¥ 183.21¥ 186.70¥ 317.97

Per share amounts
Basic earnings per share[Basic net profit per share attributable to owners of the parent]
Continuing operations (¥)
Discontinued operations (¥)(24.10)(3.79)

7.16(31.72)(0.12)

—

—

—

—

—

¥ 158.84¥ 244.23¥ 304.86¥ 213.84¥ 343.47¥ 348.46¥ 352.26¥ 183.21¥ 186.70¥ 317.97

Continuing operations (¥)¥ 164.56¥ 225.27¥ 279.50¥ 230.61¥ 322.66¥ 342.07¥ 350.00¥ 181.48¥ 186.64¥ 317.89

Discontinued operations (¥)(21.68)(3.44)

6.72(29.72)(0.12)

—

—

—

—

—

¥ 142.88¥ 221.83¥ 286.22¥ 200.89¥ 322.54¥ 342.07¥ 350.00¥ 181.48¥ 186.64¥ 317.89¥ 2,944.20¥ 3,151.94¥ 3,472.37¥ 3,498.72¥ 3,832.95¥ 4,100.70¥ 3,888.48¥ 3,896.64¥ 3,929.43¥ 4,243.70¥ 24.00¥ 37.00¥ 46.00¥ 33.00¥ 52.00¥ 53.00¥ 53.00¥ 90.00¥ 90.00¥ 94.00

4.5

Total (¥)
Diluted earnings per share[Diluted earnings per share for the period attributable to owners of the parent]

Total (¥)
Total equity per share attributable to owners of the parent (¥)
Cash dividends (¥)

Financial indicators
Business profit ratio (%)

—

—

—

—

—

—

4.0

3.1

3.6

Operating profit ratio (%)

3.0

3.2

4.0

4.0

4.5

3.9

—

—

—

—

Return on equity (ROE) (%)

5.6

8.0

9.2

6.1

9.2

8.8

9.4

4.8

4.8

7.8

Return on invested capital (ROIC) (%)

4.3

4.9

6.4

6.5

7.0

6.2

6.6

4.9

5.3

5.9

Total equity attributable to owners of the parent ratio [Total equity ratio] (%)

48.1

51.2

53.5

52.2

56.1

58.4

56.9

54.1

52.6

52.5

Interest-bearing liabilities / Equity ratio [Equity ratio] (Times)

0.51

0.45

0.39

0.43

0.34

0.25

0.27

0.37

0.44

0.45

Interest coverage ratio (Times)

22.8

21.3

24.2

35.1

57.4

44.7

43.1

24.2

40.6

61.6

Payout ratio (consolidated) (%)

30.2

30.3

30.2

30.9

30.3

30.4

30.1

49.1

48.2

29.6

Notes:
1. NH Foods Ltd. has voluntarily applied International Financial Reporting Standards (IFRS) to consolidated financial statements for the first quarter of the fiscal year ended
March 31, 2019.
Where items differ from the USGAAP or IFRS standards, the corresponding USGAAP item is shown in [ ].
2. Figures have been rounded to the nearest unit.
3. As of April 1, 2018, NH Foods Ltd. carried out a share consolidation at a ratio of one share for each two shares of common stock. Total NH Foods Ltd. shareholders’ equity pershare, basic earnings per share attributable to NH Foods Ltd. shareholders and diluted earnings per share attributable to NH Foods Ltd. shareholders were computed on
the assumption that the share consolidation was carried out at the beginning of the fiscal year ended March 31, 2013. Cash dividends represent the actual payment prior
to the relevant share consolidation.
4. Operating income represents net sales less cost of goods sold and selling, general and administrative expenses.
5. Starting from the fiscal year ended March 31, 2020, NH Foods Group discloses business profit (calculated by deducting the cost of goods sold, and selling, general andadministrative expenses from net sales, and making adjustments of currency gains and losses as determined by the Group, adjustments in accordance with IFRS, andadjustments of non-recurring items) in place of the operating income results disclosed previously. The purpose of this change is to provide a clear indication of profit
earned through business activities. The figures for the fiscal years ended March 31, 2018 and March 31, 2019 have been restated retroactively.

11

NH Foods Group | Fa ct Book 2 0 2 1

6. Interest-bearing liabilities under USGAAP consists of short-term bank loans, current maturities of long-term debt and long-term debt, less current maturities (including zero
coupon convertible bonds) in the consolidated balance sheets.
7. Capital expenditures represent the additions to tangible and intangible fixed assets. Since the fiscal year ended March 2020, capital expenditures have consisted of changes
in property, plant and equipment, right-of-use assets, and intangible assets.
8. Depreciation and amortization consist of depreciation of tangible fixed assets and amortization of intangible fixed assets. Since the fiscal year ended March 2020, depreciation
and amortization have consisted of depreciation of property, plant and equipment, right-of-use assets, and intangible assets.
9. ROE (%) = Profit attributable to owners of the parent / Average total equity attributable to owners of the parent × 100
Free cash flow (million yen) = Cash flows provided by operating activities + Cash flows used in investing activities
Total equity attributable to owners of the parent ratio (%) = Total equity attributable to owners of the parent / Total assets × 100
Interest-bearing liabilities/equity ratio (times) = Interest-bearing liabilities / Total equity attributable to owners of the parent
Interest coverage ratio (times) = Cash flows provided by operating activities / Interest paid

NH Foods Group | F a c t B o o k 2 0 2 1

12

Consolidated Financial Summary

Profitability Indicators

(%)

3/18
Gross profit ratio
Selling, general and administrative expenses ratio
Business profit ratio
Return on sales*1

16.8
13.1
4.0
3.0

16.3
13.6
3.1
1.6

(%)

3/21

3/20

3/19

Return Indicators
3/18

18.0
13.7
4.5
2.8

16.7
13.5
3.6
1.6

Return on equity (ROE)*6

3/19

9.4
6.6

Return on invested capital (ROIC)*7

3/21

3/20

4.8
4.9

7.8
5.9

4.8
5.3

*6 Return on equity (ROE) (%) = Profit attributable to owners of the parent/Average total equity attributable to owners of the parent×100*7 Return on invested capital (ROIC) (%) = Invested capital turnover × Business profit rate – Tax rate

*1 Return on sales (%) = Profit attributable to Owners of The Parent/Net sales×100

Gross profit ratio(%)

Selling, general andadministrative expenses ratio

25

(%)

20

16.8

16.3

18.0

16.7

13.1

13.6

13.5

13.7

3/18

3/19

3/21

3/20

0

4.5

4.0

3

3.6

4

3/18
3.0

3

3.1

Efficiency Indicators

2.8
1.6

2

Inventory turnover (Times)*8
Total assets turnover (Times)*9Inventory turnover (Days)*10

1.6

2

5

5
0

4

10

10

Return on sales
(%)

5

20
15

15

Business profit ratio
(%)

3/18

3/19

3/20

3/21

0

3/18

3/19

3/20

3/21

0

3/18

3/19

3/19

Total assets
Total equity attributable to owners of the parent
Interest-bearing liabilities

734,528
417,982
111,401(¥ million)

825,405
433,595
193,750

768,861
404,414
176,493

Return on equity(ROE)

Return on invested
capital (ROIC)

Inventories turnover

Total assets turnover

Inventories turnover(Times)(Times)(Days)

(%)

(%)

12

2.5

50

10

9.4

8

7.8

8

3/21

3/20

741,388
401,014147,009

10.6
1.5
34.5

10.8
1.6
33.8

3/21

3/20

Total Assets, Total Equity attributable to Owners of The Parent and Interest-Bearing Liabilities
3/18

11.3
1.7
32.4

12.0
1.8
30.3

3/21

3/20

*8 Inventories turnover (Times) = Net sales/Average inventories*9 Total assets turnover (Times) = Net sales/Average total assets*10 Inventories turnover (Days) = 365/Inventories turnover

1

1

3/19

6

6

4.8 4.8

6.6
4.9

5.3

5.9

11.3 10.8

10.6

8

4
2
0

3/18 3/19 3/20 3/21

1.7

1.6

1.5

4

2

2.0 1.8

40

1.5

34.5
30.3 32.4

33.8

30

6

4

0

10

12.0

2

3/18 3/19 3/20 3/21

0

3/18 3/19 3/20 3/21

1.0

20

0.5

10

0

0

3/18 3/19 3/20 3/21

3/18 3/19 3/20 3/21

Stability and Liquidity Indicators
3/19

3/18
Total equity attributable to owners of the parent ratio (%)*2
Interest-bearing liabilities/equity ratio (Times)*3
Interest-bearing liabilities/cash flow ratio (%)*4
Interest coverage ratio (Times)*5

54.1
0.37
21.0
24.2

56.9
0.27
47.8
43.1

Cash Flows

3/21

3/20

52.5
0.45
42.6
61.6

52.6
0.44
37.1
40.6

*2 Total equity attributable to owners of the parent ratio [NH Foods Ltd. shareholders’ equity ratio] (%) = Total equity attributable to owners of the parent/Total assets×100*3 Interest-bearing liabilities/equity ratio (Times) = Interest-bearing liabilities/Total equity attributable to owners of the parent*4 Interest-bearing liabilities/cash flow ratio (%) = Net cash provided by operating activities/Interest-bearing liabilities×100*5 Interest coverage ratio (Times) = Net cash provided by operating activities/Interest paid(¥ million)

Cash flows from operating activities
Cash flows from investing activities
Free cash flow*11
Cash flows from financing activities
Cash and cash equivalents at end of the year

3/18

3/19

3/20

3/21

53,284(48,194)
5,090(27,110)58,29030,844(45,110)(14,266)
2,932
48,10865,464(36,728)
28,736(3,077)72,39982,518(57,827)
24,691(14,934)
83,831*11 Free cash flow = Net cash from operating activities + Net cash from investing activities

Interest-bearing liabilities(¥ million)
250,000
200,000
150,000

193,750

176,493
147,009
111,401

Total equity attributable toowners of the parent ratio

Interest-bearing liabilities/
equity ratio

Interest coverage ratio(%)(Times)

80

60

56.9

54.1

52.6

52.5

0

0.4

13

10

3/18 3/19 3/20 3/21

NH Foods Group | Fact Book 2021

0

61.6

0.6

40

20
50,000

0.8
60

50

30

100,000(Times)

3/18

3/19

3/20

3/21

0.37

0.44

0.45

43.1

0

0

3/18

3/19

3/20

3/21

Free cash flow(¥ million)(¥ million)

40,000100,000

82,51880,00040.6

65,46440,00030,844

3/19

3/20

3/21

0

3/18 3/19 3/20 3/21

Cash flows fromfinancing activities(¥ million)

28,73630,00024,691

20,000(20,000)

53,28420,0003/18

0(40,000)

24.2

0.27

0.2

Cash flows frominvesting activities

60,00040
20Cash flows fromoperating activities

10,000(36,728)(45,110)(60,000) (48,194)(57,827)(10,000)(80,000)(20,000)

3/18 3/19 3/20 3/21(¥ million)
5,000(5,000)

5,090

2,932

0

(3,077)(10,000)(15,000)

0(14,934)(20,000)(14,266)
3/18 3/19 3/20 3/21

(25,000)(30,000)(27,110)
3/18 3/19 3/20 3/21

NH Foods Group | F a c t B o o k 2 0 2 1

14

Segment Information

R&D, Capital Expenditures, Depreciation and Amortization

R&D expenditures
Capital expenditures
Depreciation and amortization(¥ million)

3/18

3/19

3/20

3/21

2,898
41,201
20,714

3,159
47,82022,417

3,195
47,80233,038

3,268
82,90233,939R&D expenditures

Capital expenditures

Depreciation and amortization(¥ million)(¥ million)(¥ million)

4,000
3,000

100,000

2,898

3,159 3,195 3,268

40,00060,0002,000
40,0001,000
030,00047,82047,802

41,201

20,000

3/19

0

3/21

3/20

3/18

3/19

3/20

0

3/21

33,038 33,939
22,417
20,714

Fresh MeatsBusiness Division

3/18

3/19

3/20

3/21

Other Data

Number of employees (consolidated)
Average number of temporary employees
Dividend per share (¥)*1
Payout ratio (consolidated) (%)
Stock price *2

3/18

3/19

3/20

3/21

17,35913,29653.0
30.1

17,444
13,39690.0
49.1

17,33912,791
90.0
48.2

17,168
12,222
94.0
29.6

4,435
[3,660]4,295[2,142]High (¥)

Net sales(1) External customers

4,830

4,940

5,100

Overseas
Business Division(¥ million)

3/18

3/19

3/20

3/21

525,351

512,302498,781489,362

500,748487,607473,953

463,526(2) Intersegment24,603

24,69524,82825,836

Segment expenses

516,058

502,739

485,413471,385

9,293

9,563

13,36817,977

Segment profit

10,00020,0003/18

Processed Foods
Business Division

Assets82,90280,000

By Operating Segment

292,057

301,254

293,662

308,769

Depreciation and amortization

8,974

10,13011,168

11,720Capital expenditures

23,00527,096

16,99526,032

Net sales

690,094

673,000

685,630

656,668(1) External customers

617,396603,661

612,545591,576(2) Intersegment

72,69869,33973,08565,092

Segment expenses

644,550

638,409653,597

615,425

Segment profit

45,544

34,591

32,033

41,243

Assets341,364

318,754336,738

342,144

Depreciation and amortization

6,785

7,241

7,752

8,012

Capital expenditures

11,961

13,768

11,735

15,966

Net sales

253,895

254,789

254,649

223,649(1) External customers

125,662

128,237

129,374

112,155(2) Intersegment

128,233

126,552

125,275

111,494

Segment expenses

258,605

258,549

252,799

223,753

Segment profit (loss)(4,710)(3,760)

1,850

(104)

Assets122,255

125,146

115,226

123,427

Depreciation and amortization

2,516

2,722

3,115

3,126

Capital expenditures

4,812

4,903

6,032

4,955

Net sales

17,156

17,181

16,553

11,758(1) External customers

13,893

13,874

13,2888,581(2) Intersegment

3,263

3,307

3,265

3,177

*1 Cash dividends represent the actual payment prior to the relevant share consolidation.
*2 For the fiscal year ended March 31, 2018, the highest and lowest stock price after the consolidation of shares is stated and the highest and lowest stock price before thestock consolidation is stated in “[ ]”.

Segment expenses

16,273

16,204

15,992

13,536

Number of employees(consolidated)

Dividend per share(¥)

Low (¥)

20,00017,16817,444
17,35917,33910,000
5,000
0

3/18

3/19

3/20

3/21

2,900

3,220

Segment profit

883

977

561

(1,778)13,353

12,90029,377

27,535

Depreciation and amortization

245

252

269

258

Capital expenditures

229

163

1,092

19,181

1,258,463

1,234,180

1,229,826

1,176,101

1,258,463

1,234,180

1,229,826

1,176,10180(2) Intersegment

0

0

0

0

60

Segment expenses

1,207,874

1,195,869

1,186,054

1,123,675

AssetsConsolidated

120
100

15,0003,655

Others90.0

90.0 94.0

53.0

Net sales(1) External customers

40

Segment profit

50,58938,311

43,772

52,426

20

Assets734,528

741,388768,861

825,405

Depreciation and amortization

20,714

22,41733,03882,902

Capital expenditures

41,20147,82047,80233,939

0

3/18

3/19

3/20

3/21

Notes:
1. As of April 1, 2020, the Affiliated Business Division was renamed to the Dairy & Marine Products Division and placed under the administration of the Processed Foods Business
Division. As a result, the three operating segments will now be the Processed Foods Business Division, the Fresh Meats Business Division, and the Overseas Business Division.
The processed meat products / extract manufacturing and sales company that was formerly under the jurisdiction of the Fresh Meats Business Division has been transferredto the Processed Foods Business Division.
2. Depreciation and amortization consist of depreciation of property, plant and equipment and amortization of intangible assets.
3. Capital expenditures represent the additions to property, plant and equipment and intangible assets.
4. From the fiscal year ended March 31, 2020, the new “segment profit” is calculated by deducting cost of goods sold and selling, general and administrative expenses from net
sales, and accounting for foreign exchage gains and losses determined by the Group, while excluding adjustments in accordance with IFRS and non-recurring items.
“Segment profit” for the fiscal years ended March 31, 2018 and 2019 are presented by applying the new calculation method from the viewpoint of the comparability withthe fiscal year ended March 31, 2020.
5. Consolidated is deducted Eliminations, Adjustments and Others from each business divison.
6. From the first quarter of the fiscal year ending March 2022, the Company has classified the team business and new business into “Other” for the purpose of expanding into
new business areas.
In addition, from the first quarter of the fiscal year ending March 2022, we have changed the method of calculating sales in order to more appropriately reflect the performanceof the reporting segment. Regarding this change, the figures before the previous fiscal year have been retroactively revised. However, the figures before the fiscal year
ended March 2020 have not been audited.

15

NH Foods Group | Fa ct Book 2 0 2 1

NH Foods Group | F a c t B o o k 2 0 2 1

16

Consolidated Financial Statements (IFRS)

By Geographical Area

Asia & Europe

Americas(¥ million)

3/18

3/19

3/20

3/21

81,436

79,19173,89856,423(1) External customers

25,36624,85025,86923,324(2) Intersegment

56,07054,341

48,02933,099Segment profit (loss)

(188)

(152)

809

(818)

Net sales

Net sales(1) External customers

Australia

Cash and cash equivalents

58,29048,10872,39983,831

Trade and other receivables

154,781

153,260

130,213127,067

105,422

113,415

114,520

107,906

AssetsCurrent assets

21,55622,331

21,757

20,288Biological assets

24,83025,971

21,33523,581

67,762Other financial assets

14,55812,041

11,701

15,082Other current assets

4,893

5,468

5,583

8,561

362,774

358,263355,751

366,028

269,143

289,898

284,060

325,629——35,54538,362Biological assets

2,057

1,877

1,883

1,314

Intangible assets and goodwill

10,329

7,097

8,953

10,608Investments accounted for using the equity method

14,426

14,40013,910

9,011

Other financial assets

40,63834,12532,64735,796

Deferred tax assets

24,77228,00429,74526,056

Other non-current assets

10,389

7,724

6,367

12,601

371,754

383,125

413,110459,377

734,528

741,388768,861

825,405

57,101

62,790698

2,722

97,87599,306

98,82680,947(1) External customers

78,74081,056

81,74968,543(2) Intersegment

19,135

18,25017,077

12,404

Segment profit (loss)(3,032)(2,123)

1,466(1,048)(¥ million)

3/18

3/19

3/20

3/21

Hams and sausages

132,404

128,356

130,982

132,425

Processed foods

233,089

233,655

228,833

223,585

Fresh meats

716,343

703,557

711,753

672,880

Beef

293,287

297,583

296,913

256,999

Pork

227,186

221,157

226,612229,450

Chicken172,501

160,821

166,032

166,222

Other fresh meats

23,36923,99622,196

20,209Marine products

93,804

88,13880,72476,853

Dairy products

34,191

33,27033,61431,967

Others48,632

47,20443,92038,391Total

1,258,463

1,234,180

1,229,826

1,176,101

Net Sales by Product Category

Total current assets

Non-current assets
Property, plant and equipment
Right-of-use assets

Total non-current assets
Total assets

Liabilities and equity
Current liabilities
Interest-bearing liabilities

48,97962,74655,92459,322

Trade and other payables

113,984

111,573

99,802

98,983

Income taxes payable

6,557

2,738

3,178

9,748

Other financial liabilities

23,56018,123

18,87725,29038,90438,78835,96635,822

231,984

233,968

213,747

229,165Interest-bearing liabilities

62,422

84,263

120,569

134,428Retirement benefit liabilities

13,513

14,11814,92014,543

Other financial liabilities

1,187

1,105

719

683

Deferred tax liabilities

1,306

1,326

732

581

Other current liabilities
Total current liabilities

Non-current liabilities

Other non-current liabilities(¥ million)

Total non-current liabilities

1,500,000

Total liabilities
1,258,463

1,234,180

1,229,826

NH Foods Group | Fact Book 2021

3/19

3/20

381,096

36,29436,294

Processed foods

72,672

72,63971,240Retained earnings

300,076

286,934

294,018

320,577

(16)

(202)

(173)

(3,532)Others38,391
3/21

352,264

36,29476,853

3/18

336,030

72,818Marine products

31,967

311,640
36,291

672,880

Dairy products

1,696
151,931

Capital surplus

Fresh meats

250,000

1,577
138,517

Common stock

223,585

500,000

1,250
102,062

Hams and sausages

132,425750,000

1,228
79,656Equity1,176,101

1,000,000

17

3/21

88,050Net Sales by Product Category

0

3/20

84,547

Notes: 1. The total of each area is not equal to the Overseas Business Division total, by reason of the elimination of intersegment transactions.
2. The Americas includes North and South American businesses.
3. Breeders & Packers Uruguay S.A. is included in Australia.

1,250,000

3/19

79,432(344)

Net sales

3/18

76,969(599)

Segment profit (loss)(¥ million)

Inventories

55,413(2) Intersegment

Consolidated Statements of Financial Position

Treasury stock, at cost
Accumulated other comprehensive income
Total equity attributable to owners of the parent

8,813

5,316

1,636

9,016

417,982

401,014404,414433,595

4,906

4,344

12,183

10,714

Total equity

422,888405,358

416,597444,309

Total liabilities and equity

734,528

741,388768,861

825,405

Non-controlling Interests

NH Foods Group | F a c t B o o k 2 0 2 1

18

Consolidated Statements of Income(¥ million)

Consolidated Statements of Cash Flows

3/18

3/19

3/20

3/21

Net sales

1,258,463

1,234,180

1,229,826

1,176,101

Operating activities

Cost of goods sold1,047,478

1,033,577

1,024,296

964,367

165,155

168,338

166,030

161,215

Selling, general and administrative expenses(¥ million)

3/18

3/19

3/20

3/21

Profit before tax

52,79830,26727,03948,874

Depreciation and amortization expenses

21,20022,86533,336

34,109Impairment losses

1,292

4,937

3,904

7,069

461

187

1,205

(192)

Gain from the transfer through the posting system

2,273

—

—

—

Other income

6,506

8,510

3,592

8,497

Decrease (increase) in fair value of biological assets

Other expenses

3,808

9,292

14,79011,956

Financal income and costs

Financal income

2,220

1,427

1,285

1,942

Decrease (increase) in trade and other receivables

Financal costs

1,292

3,561

3,903

1,534

(928)

2,134

2,618

(408)

(21,884)

1,386

21,9683,817

Decrease (increase) in inventories(199)(8,113)(2,316)

7,722

Decrease (increase) in biological assets

4,745(2,110)

1,005

113

Share of profit (loss) in investments accounted for using
The equity method

1,069

918

1,355

1,406

Decrease (increase) in other assets

(143)

2,678

555

(8,815)

Profit before tax

52,79830,26727,03948,874

Increase (decrease) in trade and other payables

9,915(2,222)(10,964)(1,252)

Income tax expense

15,074

11,2508,106

17,816

Increase (decrease) in other liabilities

2,519

38

(3,772)(507)

Profit37,72419,017

18,93331,058Others - net(385)(6,287)(1,143)

648

Profit attributable to:
Owners of the parent
Non-controlling interests
ProfitInterest received

689

719

675

287

Dividends received

1,180

1,573

2,304

2,735

37,552

19,561

19,21432,616

Interest paid

(1,235)(1,273)(1,611)(1,339)

172

(544)

(281)

(1,558)

Income tax paid

(16,741)(15,935)(9,339)(10,343)

37,72419,017

18,93331,058Cash flows from operating activities

53,28430,84465,46482,518(31,796)(47,504)(36,898)(59,398)

3,181

978

607

1,423

Investing activities
Acquisition of fixes assests
Proceeds from sales of fixed assets
Decrease (increase) in time deposits

3,602

2,836

(610)

259

Acquisiton of other financial assets(2,482)(1,077)

(84)

(182)

Sales and redemption of other financial assets

1,808

527

42

673

Investments in associated companies(8,929)

(38)

(120)

—

Net increase (decrease) in cash and cash equivalents
resulting from purchase of business(13,404)———

Net increase (decrease) in cash and cash equivalents
resulting from sale of business

608

—

—

—

Others - net

(782)

(832)

335

(602)

(48,194)(45,110)(36,728)(57,827)

Cash dividends(10,980)(11,403)(9,271)(9,269)

Increase (decrease) in short-term bank loans(4,221)9,026(2,001)(4,840)

Proceeds from debt

6,198

40,97038,71470,393

Repayments of debt

(19,074)(16,060)(39,019)(66,351)

1,063

406

8,563

2

Cash flows from investing activities

Financing activities

Contributions from non-controlling interests
Acquisitions from non-controlling interests

—

—

—

(1,489)Acquisition of treasury stock(10)(20,007)(4)(3,567)

Sale of treasury stock

—

—

—

187

Others - net

(86)

0

(59)

0

(27,110)

2,932(3,077)(14,934)

(406)

1,152

(1,368)

1,675

Net increase (decrease) in cash and cash equivalents(22,426)(10,182)

24,291

11,432

Cash and cash equivalents at beginning of the year

80,71658,29048,10872,399Cash and cash equivalents at end of the year

58,29048,10872,39983,831

Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents

19

NH Foods Group | Fa ct Book 2 0 2 1

NH Foods Group | F a c t B o o k 2 0 2 1

20

Corporate Data—Stock Information (As of March 31, 2021)

Corporate Data

Share Data

Corporate name

NH Foods Ltd.

Authorized shares

285,000,000

EstablishedMay 30, 1949

Issued and outstanding

102,958,904

Capital¥36,294 million

President

Yoshihide Hata

Employees

Consolidated 29,390
Non-Consolidated 2,252

Shareholders• Manufacture and sale of processed meats (hams and sausages, etc.)
and cooked foods (retort-packed foods, pre-prepared foods, etc.)• Breeding of livestock, and processing and sale of fresh meats• Production and sale of marine and dairy products

Head officeBreezé Tower, 4-9, Umeda 2-chome, Kita-ku, Osaka 530-0001, Japan

Telephone+81-6-7525-3026

Packing andProcessing of
Fresh Meats

Sales of Fresh Meats

Production andSales of Hams andSausages

Production ofProcessed Foods• Nippon White Farm Co., Ltd.
• Interfarm Co., Ltd.
• Nippon White Farm Niigata Co., Ltd.
• Whyalla Beef Pty. Ltd. (Australia)• Nippon Food Packer, Inc.
• Nippon Food Packer Kagoshima, Inc.
• Nippon Food Packer Shikoku, Inc.
• Nippon Food Packer Tsugaru Co., Ltd.
• Usune Co., Ltd.
• Miyazaki Beef Center Co., Ltd.
• Nippon Pure Food, Inc.
• Oakey Beef Exports Pty. Ltd. (Australia)• Wingham Beef Exports Pty. Ltd. (Australia)• Thomas Borthwick & Sons Pty. Ltd.
(Australia)• Ege-Tav Ege Tarım Hayvancılık Yatırım
Ticaret ve Sanayi Anonim Şirketi (Turkey)• Breeders & Packers Uruguay S.A. (Uruguay)• Higashi Nippon Food, Inc.
• Kanto Nippon Food, Inc.
• Naka Nippon Food, Inc.
• Nishi Nippon Food, Inc.
• NHJF Corporation• Minami Nippon Fresh Foods Co., Ltd.
• NH Foods Australia Pty. Ltd. (Australia)• Beef Producers Australia Pty. Ltd.
(Australia)• Day-Lee Foods, Inc. (USA)• Nippo Food (Shanghai) Co., Ltd. (China)• Nipponham Factory Ltd.
• Nipponham Hokkaido Factory Ltd.
• Nipponham Northeast Ltd.
• Kyodo Foods Co., Ltd.
• Japan Assorted Business Services Co., Ltd.
• Nipponham Southwest Ltd.
• Hakodate Carl Raymon Co., Ltd.
• Kamakura Ham Tomioka Co., Ltd.
• NH Foods Vietnam Joint Stock Company(Vietnam)• Redondo’s, LLC (USA)• Nipponham Processed Foods Ltd.
• Nipponham Delicatessen Ltd.
• Premium Kitchen Co., Ltd.
• Shandong Rilong Foodstuffs Co., Ltd. (China)• Thai Nippon Foods Co., Ltd. (Thailand))

Shareholding
ratio
(%)

The Master Trust Bank of Japan, Ltd.
(Trust account)

15,663

15.33

Custody Bank of Japan, Ltd.
(Trust account)

7,224

7.07

The Hyakujushi Bank, Ltd.

3,768

3.69

Meiji Yasuda Life Insurance Company

3,677

3.60

The Norinchukin Bank

2,963

2.90

• NHF Manufacturing (Malaysia) Sdn. Bhd.
(Malaysia)• PT NH Foods Diamond Indonesia

Nippon Life Insurance Company

2,785

2.73

MUFG Bank, Ltd.

2,747

2.69

Sumitomo Mitsui Banking Corporation

2,325

2.28

• NH Foods Marketing Ltd.
• Nipponham Customer Communications Ltd.

JPMorgan Securities Japan Co., Ltd.

1,626

1.59

NH Foods Group | Fact Book 2021

(Indonesia)

Sales of Hams andSausages, andProcessed Foods
Production and Salesof Processed
Marine Products
Production and Salesof Fermented Milk,
Lactic Acid Probiotic
Beverages, and Dairy
Products (Cheese)
Production and Salesof Extract Seasonings
Production and Salesof Freeze-Dried andFrozen Foods
Professional Sports

IT, Services, andOther Businesses

Logistics andTrading

33 (3,655 thousand shares)
Other companies

26,202

Holding
1,000s ofshares(Name of shareholder

Main Companies of the Group
Production andBreeding

Securities firms

375 (2,439 thousand shares)• Marine Foods Corporation• The Hoko Co., Ltd.
• Kushiro Marusui Co., Ltd.
• Nippon Luna, Inc.
• Hoko Co., Ltd. (ROLF Division)

The Kyoei Fire and Marine Insurance
Company, Limited

Treasury stock

Shareholders
by Category

Major Shareholders (Leading 10 by holding)Note: Including the average number of temporary employees

Main businesses

21

Distribution of Shares

1 (35 thousand shares)
Individual / Others

25,148 (12,926 thousand shares)
Foreign investors

560 (25,561 thousand shares)
Financial institutions

85 (58,340 thousand shares)

Less than 100

1,507 (40 thousand shares)
100 – Less than 1,000

21,706 (7,039 thousand shares)
1,000 – Less than 10,000

Shareholders
by Holding

2,649 (4,955 thousand shares)
10,000 – Less than 100,000

241 (7,704 thousand shares)
100,000 – Less than 500,000

62 (14,478 thousand shares)
More than 500,000

1.58

1,613

37 (68,741 thousand shares)

Note: In addition to the list above, NH Foods Ltd. holds 35 thousand shares ofcommon stock.

Stock Price Trend
Stock price (¥)
6,000• Nippon Pure Food, Inc.
• Pure Food Asia, Inc. (Taiwan)• Nipponham Frozen Foods Ltd.
• Hoko Co., Ltd.
• Hokkaido Nippon-Ham Fighters BaseballClub Co., Ltd.
• Fighters Sports & Entertainment Co., Ltd.
• Nipponham System Solutions Ltd.
• Nipponham Business Associe Ltd.
• Nipponham Career Consulting Ltd.
• Nipponham Engineering Ltd.
• Nippon Logistics Group, Inc.
• Nippon Chilled Logistics, Inc.
• Nippon Logistics Center, Inc.
• Nippon Daily Net Co., Ltd.
• Nippon Route Service Co., Ltd.
• Japan Food Corporation• NH Foods Chile Y Compania Limitada(Chile)• NH Foods Mexicana S.A.DE C.V. (Mexico)• NH Foods Singapore Pte. Ltd. (Singapore)• NH Foods Thailand Ltd. (Thailand)• Thai Nippon Cold Storage Co., Ltd.
(Thailand)• NH Foods Taiwan Ltd. (Taiwan)• NH Foods U.K. Ltd. (The United Kingdom)

5,000

4,000

3,000

2,000

Trading volume
6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

2020/3

4

5

6

7

8

9

10

11

12

2021/12

30

NH Foods Group | F a c t B o o k 2 0 2 1

22