Corporate Value Maximization

NISSIN FOODS HOLDINGS CO., LTD.
Stock Code: TSE 2897
May 2020

1

ContentsSection 1 Mid-Term Business Plan FY2021



Section 3

Interim Review and Future Outlook-

Global Demand Trend of Instant Noodles・・・43-

Review of Medium-Term Business Plan 2021・・・4-

Composition Rate of Bag-type and Cup-type noodles and-Summary of Medium-Term Business Plan 2021・・・5-

Review of Medium-Term Business Plan 2021 (by Segment)・・・7-

CUP NOODLES Strategy・・・45-

Review of Five Key Themes・・・8-

Overseas Expansion(wholly-owned/equity-method/investing)・・・-

Review of Investment, etc. and Future Policy・・ ・9-Impact of the Coronavirus Disease 2019 (COVID-19)・・ ・10-

Relationship with Premier Foods plc・・・48-

Initiatives to Sustainable Growth and Enhance Corporate Value・・・11

GDP/Capita・・・44

47-

Growth Drivers by Geographical Area・・・49

Achievements of the 4th year of the MTBP FY2021-

Brazil: Overview of Business・・・50-

Sales/Revenue, Operating Income/Profit & OPM-Consolidated・・・13-

China: Overview of Business ・・・52-

Sales/Revenue, Operating Income –By Segment・・・14-

China: Production Capacity Enhancement and Sales-

Growth Trend of Instant Noodles Business・・・17-

Financial and Capital Policies・・・18-

India: Overview of Business・・・54-

Market Capitalization・・・19-

Promote local personnel to senior executives in major overseas

Offices・・・53

Essence of Mid-Term Business Plan FY2021(Initial)

areas・・・55-

Overseas Business Strategy

Section 2

Domestic Business Strategy

Developing and Strengthening Human Resources for Global
Management・・・56-

NISSIN’s Position in Instant Noodles Industry in Japan・・・36-

Power of NISSIN’s Brands in Japan・・・37-

Growth Strategy of Instant Noodles Business・・・38-

Management centered on Corporate Governance・・・58-

Core Brands of NISSIN FOOD PRODUCTS・・・40-

Major Achievements of the effective Board of Directors・・・59-

Growth Strategy of NISSIN’s Domestic Other Businesses・・・41Section 4

Section5

Corporate Governance for Sustainable Growth

Overview of NISSIN

Section 1
Mid-Term Business Plan FY2021

MTBP2021
Interim Review and Future Outlook

4

Review of Medium-Term Business Plan 2021

Mid-term Plan KPIs (IFRS)Revenue
Earning
powerthroughoperations

Operating profit

FY2020 Results

FY2021
Plan*1

FY2021
Revised Plan

468.9 bil. yen

480.0 bil. yen

486.0 bil. yen

41.3 bil. yen

42.5 bil. yen

43.5 bil. yen

Ratio of operating profit
from overseas business

Capitalmarket
value

% or

% or

30 higher

30 higher

Profit*2

29.3 bil. yen

30.0 bil. yen

30.5 bil. yen

ROE

9 %

8 %

9 %

278 yen

284 yen281 yenAdjusted EPS*3

28.3 %*1: The Medium-Term Business Plan 2021 was revised and announced on May 9, 2019.
*2: Profit attributable to owners of parent under IFRS
*3: Operating profit ± Other income, expenses – Income tax expenses – Profit attributable to non-controlling interests) / Average numberof shares outstanding during the fiscal year (excluding treasury shares)

5

Summary of Medium-Term Business Plan 2021 (1)(Bil. yen)

FY2021
Initial plan

FY2021
Plan*1

FY2021
Revised Plan

FY2020Results

550.0

480.0

486.0

468.9

Operating profit

47.5

42.5

43.5

41.3

Profit

33.0

30.0

30.5

29.3

8% or higher

8% or higher

9%

9%

Revenue

ROE (%)
Payout ratio
Adjusted EPS (yen)Averageor higher*2

40%

Averageor higher*2

40%

37.6％

39.1％

330

284

281

278

*1: The Medium-Term Business Plan 2021 was revised and announced on May 9, 2019.
*2: Average payout ratio for the five-year period of the Mid-term Business Plan 2021.

8％ or higher → FY2021 Revised plan ：ROE：

Initial plan：

9％

Average payout ratio ：Initial plan： 40% or higher → FY2021 Revised plan ： 41.3%

CAGR of adjusted EPS：

Initial plan： 10% or higher → FY2021 Revised plan ： 8.3%

6

Summary of Medium-Term Business Plan 2021 (2)•Market capitalization and Adjusted EPS during the period of the Mid-term Business Plan 2021
Bil. yen

yen

1,000

937.5

*1

Adjusted EPS

330

900
Market capitalization (After deduction of treasury shares)

800

310
768.5

700

350

651.5

791.6
278

642.2

270

263
600

290

253
250

571.5
500

225

230

400

210
196

300

190

178
200

170

100
2015/3 *2*1*2

2016/3*2

2017/3*2

150
2018/3

2019/32020/3Calculations differ between J-GAAP and IFRS. The company has applied IFRS from the 1Q of FY2019.
・J-GAAP：Adjusted EPS = Adjusted NOPAT/Average number of shares outstanding (excluding treasury shares)
・IFRS：Adjusted EPS = (Operating Profit ± Other income, expenses - Income tax expense - Profit attributable to non-controlling interests)/Average number of shares outstanding (excluding treasury shares)
J-GAAP

Review of Results (partial)• The company has applied IFRS from the 1Q of FY2019.
• Acquisition of Brazil business in the 3Q of FY2016• Mid-term Business Plan 2021 commenced at FY2017 • Domestic instant noodles prices were revised in June 2019.

7

Review of Medium-Term Business Plan 2021 (by Segment)

FY2021 Targets for Domestic Business
FY2020Results(Bil. yen)

Instant
noodles

FY2021
Revised
Plan

Revenue

237.8

238.0

242.5

Operatingprofit

29.8

29.5

30.2

12.5%

12.4%

12.5%

Revenue

99.2

103.0

104.0

Operatingprofit

3.6

5.2

4.1

3.6%

5.0%

3.9%

%

Chilled andfrozen foods,
confectionery
and beverages

FY2021
Plan*1%

FY2021 Targets for Overseas Business

The
Americas

China(incl. H.K.)

Foreign exchange rate：

FY2021(Assumed)

USD

108.74107.00

BRL

26.52

26.00

HKD

13.91

14.00

EUR

120.82121.00

FY2021
Revised
Plan

65.9

67.5

68.0

Operatingprofit

4.1

3.7

4.3

%

6.2%

5.5%

6.3%

Revenue

43.1

47.0

47.0

Operatingprofit

4.9

4.7

4.9

11.3%

10.0%

10.4%

Revenue

11.3

13.0

13.5

Operatingprofit

2.4

2.7

3.4

21.3%

20.8%

25.2%

Revenue

7.4

7.5

7.5

Operatingprofit

1.1

1.3

1.4

14.4%

17.3%

18.7%

%

EMEA

FY2021
Plan*1

Revenue%Asia
FY2020

FY2020Results(Bil. yen)%

*1: The Medium-Term Business Plan 2021 was revised and announced on May 9, 2019.
* The business plan targets for the China region were set independently by NISSIN FOODS HOLDINGS.

8

Review of Five Key Themes
Strategic ThemeFY2021 Target

PromotingUp 50%

global branding forcompared to FY2016(units)

FY2020 Results

FY2021 Estimate

Comments

Up 20%Up around 30%✓ Progress was slightly slow due to the impact ofprice revisions and a shift to premium productsin the U.S. business .
✓ Progress remained solid in Brazil, China andIndia, among BRICs.

63%

Around 63%

1

CUP NOODLES

2Focusing onpriority locations(BRICs)3

Laying stronger
foundations fordomestic profit base

Operating profit generated
in priority overseas
locations accounts for

70%
NISSIN FOOD
PRODUCTS+ MYOJO FOODS

29.8 bil. yen

29.5 bil. yen

30.2 bil. yen

Operating profit target

4

Establishing a second
primary revenue source(confectionary, cereals,
chilled and frozen foods)

5
Human resources for
global management

As well as growing
brands organically,
make the most of M&A

We went outside the budget for
M&A deals.
We will continue to examinefavourable M&A proposals.

Pool of managementhuman resources
X2(200 people)

X 1.9(Around 190 people)

X2(200 people)✓ As overseas businesses were generally strong,
performance remained steady, particularly inareas other than BRICs.

✓ Full-scale operation of Kansai Plant (improvementof production efficiency, safety and security)✓ Further enhancing the value of core brands✓ Aim to further strengthen the foundations by
reducing SKU and concentrating on core brands.
✓ The Cereal business increased its market
presence and value.
✓ In particular, revenue in the Frozen Foods
business grew due to market growth andincreased demand for single-serving foodproducts.
✓ A shift to more profitable business is needed.
✓ The pool of human resources is almost full.
✓ Systematic rotation and education opportunities
are being enhanced to improve the quality of thepool of human resources.

9

Review of Investment, etc. and Future Policy
Bil. yen

Initial plan

FY2017FY2018FY2019FY2020

FY2021(Reasons for extra investment)

Capitalinvestment

150.0
bil. yenover 5 years

Depreciation
andamortization

Around
19.0 bil. yen(FY2021)36.3*1

15.4*1

52.0

17.8

57.6

20.3

39.7

25.2

Around39.4

Around

25.4

NISSIN FOOD PRODUCTS (increased
investment in Kansai Plant, shift to in-housemanufacturing of materials, chilled andfrozen food plant, etc.)
The expansion of overseas lines: BonChi
Yamagata Plant, Nissin Brazil, and newwarehouse contracts that have arisen
associated with IFRS16, etc.

Impact of approximately 3.0 bil. yen due tothe adoption of IFRS16 is included in the
FY2020*1 FY2017 standards are based on J-GAAP

Review of capital investment

Review of business investment✓ Expansion of investment in safety and security✓ Expansion of investment aimed at improving
production efficiency and saving labor✓ Expansion of facilities for growing categories

Business
investment

Initial plan

FY2020100.0bil. yenover 5 years

24.6 bil. yen
over 4 years✓ Major investments up to FY2020 included Investment in
Premier Foods, investment in Thai President Foods andZhuhai Nissin Packaging Company✓ We are still examining M&A deals.

The total amount of investment, including M&A, needs to be controlled. We will manage expenditure by putting
investments in order of priority based on factors such as ROI.

10

Impact of the Coronavirus Disease 2019 (COVID-19)
Response to COVID-19

Impact on business performance (FY2020)

Main working conditions

In the entire NISSIN FOODS Group:
Approx. 5.9 bil. yen
impact on revenue• Feb. 27-: Working from home, in principle, and minimizing
the number of commuters.
• Commuters: Preventive measures such as staggered
commuting, social distancing, ventilation, body temperaturechecks, hand-washing and wearing of a mask.
• TEAMS meetings, stamp-less paperwork• Manufacturing staff come to work as usual to supply
products.

◼ Breakdown:

Bil. yen

Revenue
Instant noodles

3.4

Chilled and frozen foods,
confectionery and beverages

1.0

The Americas

0.7

China (incl. H.K.)

0.5

Asia

0.2

• Generally, there is no problem in the procurement ofmaterials.

EMEA

0.1

• Overseas plants are operating as usual with the exceptionof certain area, by taking thorough preventive measures.

Total

5.9

Product supply• Working to supply products based on an enhanced
production system to deliver foods, which are part of the life
infrastructure, to consumers.
• Efficient production by narrowing SKU down andconcentrating on core brands, in principle.

Procurement of materials and production

Initiatives to Sustainable Growth and Enhance Corporate Value◼ EARTH FOOD CHALLENGE 2030

International ESG reputation
Selected for the second
consecutive year as a componentof the Asia/Pacific Index of the
Dow Jones Sustainability Indices,a group of global stock priceindices of ESG investments

This is the NISSIN FOODS Group’s own medium- to long-term
environmental strategy. By taking on critical environmental issues
and increasing its ability to coexist with the environment, the Groupwill sustain its business life cycle over the longer term by avoiding
the risk of existing businesses declining in the future.

Efforts to raise awareness of
emergency stockpiling were recognized
The Group received the Grand Prix in thecorporate and industrial division of the 6thJapan Resilience Award, recognized for its
efforts to raise awareness of emergency
stockpiling through the “Hyakufukushi Project”:
Project No.25 “Keep Your Pantry Stocked for an
Emergency: The Rolling Stokers Project,” which
encourages general customers to practice“rolling stock*1,”as well as through the sale of“CUP NOODLE Rolling Stock Set,”*2 whichmake it easy to practice “rolling stock” at home.
*1: A method of always keeping a certain stockpile of food at home by consuming
stockpiled food on a routine basis and regularly purchasing stocks.
*2: NISSIN FOOD PRODUCTS, a Group company of NISSIN FOODS HOLDINGS, sells it.

Evaluation of health management
NISSIN FOODS HOLDINGS,NISSIN FOOD PRODUCTS,NISSIN CHILLED FOODS andNISSIN FROZEN FOODS werecertified by METI and Nippon
Kenko Kaigi as 2020's White 500
for strategic health and productivity
management for the second
consecutive year.

Evaluation of empowerment of women
Selected for the second consecutive
year as “Semi-Nadeshiko Brand” inthe “Nadeshiko” initiative run by the
Ministry of Economy, Trade andIndustry (METI) and the Tokyo Stock
Exchange to recognize enterprisesthat are outstanding in terms of
encouraging the empowerment of
women in the workplace.

11

Achievements of the 4th year of the MTBP FY2021(Fiscal Year Ended March 31, 2020)

13

Sales/Revenue, Operating Income/Profit & OPM - Consolidated
Sales/ Revenue
Bill. yen

J-GAAP

IFRS

540
516.4

520
495.7

500
480

486.0
468.9

468.1

460

451.0

440.9

440
420
400

2016/32017/3

2018/3

2018/3

2019/32020/32021/3
Plan

Operating income/Operating profit/Adjusted operating income/OPM/Adjusted OPM
J-GAAP

Bill. yen

％

IFRS

8.8

60
50
40
30

5.6
26.4

5.3
24.7

8.0

6.6

6.6
5.8
32.9
28.6

34.1

2017/3

2018/3

6.5
33.4

6.4

35.2

9.0

41.3

43.5

2020/32021/3

29.0

20
10
0
2016/3

2018/3

2019/3

Plan

Operating income/ Operating profit

Adjusted operating income

OPM*Adjusted Operating income= Operating income-Impact from retirement benefit accounting* Due to the introduction of IFRS, Adjusted Operating income as KPI was abolished and (IFRS) Operating Profit is KPI.

Adjusted OPM

9
8
7
6
5
4
3
2
1
0

Sales/Revenue & Operating Income – by Segment-1

Domestic

14◼ Instant Noodles(NISSIN FOOD PRODUCTS&MYOJYO FOODS)
Sales/ Revenue
Bill. yen
300

J-GAAP
265.2

269.2

Operating income/profit & OPM
Bill. yen
60

IFRS

274.4

250

222.1

226.1

237.8

242.5

J-GAAP
10.9

50

150

30

100

20

50

10

0

12.5
11.6

12.5

11.4

12
10

9.6

40

200

IFRS

11.1

25.3

30.3

29.5

25.8

30.2

29.8

25.7

8

6
4
2

0
2016/3 2017/3 2018/3 2018/3 2019/3 2020/3 2021/3％
14

0
2016/3Plan

2017/3

2018/3

2018/3

2019/3Operating income/ Operating profit

2020/3
OPM

2021/3Plan◼ Chilled and Frozen, Confectionery and Beverages
Sales/ Revenue
Bill. yen

J-GAAP

120

Operating income/profit & OPM

4.0

7

112.8

IFRS

3.9

4.1
3.6

6

110
104.0

105
100

J-GAAP

8

115.6

115

％

Bill. yen

IFRS

98.4

96.9

97.6

4.5

5
4

99.2

3

95

2

90

1

85

4.5

4.0

3.6

2.0
1.6

2.0

1.5

0
2016/32017/3

2018/3

2018/3

2019/32020/32021/3

2016/32017/3

2018/3

2018/3

2019/32020/3Operating income/ Operating profit

OPM

5
3.9 4
4
3
4.1
3
2
2
1
1
0
2021/3Plan

Plan

Sales/Revenue & Operating Income – by Segment-2

15

Overseas◼ The Americas(Instant noodles in the U.S., Brazil, and Mexico)
Sales/ Revenue
Bill. yen
80
70
60
50

J-GAAP
64.5

60.4

Operating income/profit & OPM
IFRS
62.5

63.4

65.9

68.0

Bill. yen
10

J-GAAP

％
8

IFRS

48.3

3.8

6

30

2

20

0

10

-2

0
2016/3 2017/3 2018/3 2018/3 2019/3 2020/3 2021/3
Plan

3.1

4

3.9

2.3
1.1

2.0

2.4

-2
2016/32017/3

2018/3

2018/3

2019/3
2019/3-4(Instant noodles in Hong Kong and Mainland China)

Operating income/ Operating profit

Bill. yen

J-GAAP

50

42.6

40.9
36.0

40

IFRS
40.1

41.4

43.1

47.0

20
10
0
2017/3

2018/32021/3

Forecast

Plan

-4
-6
-8
-10

OPM

Operating income/profit & OPM

30

2016/32020/3-8.3-5.2

Sales/ Revenue

2
0

-6

◼ China

4.3

4.1

2.2

4

40

6.3 6

6.2

8

2018/3

2019/32020/32021/3
Plan

Bill. yen
10
9
8
7
6
5
4
3
2
1
0

J-GAAP
10.1

9.5

IFRS

11.3
10.2

％
12
10.4

9.3

8.4

10
8

4.9
4.1

3.4

3.6

4.1

4.9

3.8

6
4
2
0

2016/32017/3

2018/3

2018/3

2019/32020/3Operating income/ Operating profit

OPM

2021/3
Plan

Sales/Revenue & Operating Income – by Segment-3

Overseas16◼ Asia(Instant noodles in India, Thailand, Indonesia, Viet Nam, and Singapore)
Sales/ Revenue
Bill. yen
14

J-GAAP

Bill. yen

IFRS
11.4

12

9.0

10
8

13.5

9.4

Operating income/profit & OPM
25.2

9

J-GAAP

IFRS

21.3

20

7

11.3

9.2

16.0

5
3

6

2

2.4

1.8

1

4

15

3.4

7.2

-2.0

-1.4

-1.4

10

-0.4
5

-1

0
2016/3 2017/3 2018/3 2018/3 2019/3 2020/3 2021/3
Plan

％
25

2016/3-3

2017/3

2018/3

2018/3

2019/32020/3 2021/3
Plan

Operating income/ Operating profit

0

OPM◼ EMEA(Instant noodles in Europe and Turkey)
Sales/ Revenue
J-GAAP

IFRS
6.8

7

5.9

6
4.6

％
18.7 20

Bill. yenBill. yen
8

5Operating income/profit & OPM
7.4

7.5

J-GAAP

9

IFRS

7

5.9

15

14.4

5

4.6

9.3

4

3

3

1

-0.4

0.0

-0.5

0.2

2

-1

2016/32017/3

2018/3

2018/3
2.7

1

-3

0
2016/3 2017/3 2018/3 2018/3 2019/3 2020/3 2021/3
Plan

0.4

0.6

1.1

1.4

10
5

2019/3Operating income/ Operating profit

2020/32021/3
Plan

OPM

0

17

Growth Trend of Instant Noodles Business
Consolidated Sales Trend(Bil. yen)
J-GAAP CAGR
(FY2013-FY2017)
19.5%

600

496

500

468
417

400

IFRS CAGR(FY2018-FY2020)
4.1%

383

74

432

110

441

451

101
83

118

123

469

128

27%

54
300

89

93

94

102

117
101

102

103

22%

200

J-GAAP CAGR
(FY2013-FY2017)
7.1%
IFRS CAGR(FY2018-FY2020)
1.2%

J-GAAP CAGR
(FY2013-FY2017)
240

250

255

265

269
222

100

226

238

51%

2.9%
IFRS CAGR(FY2018-FY2020)

3.5%
0FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

IFRS

IFRS

IFRS

18

Financial and Capital Policies
Cash Flow

Shareholder Returns
Expected dividend payment: 11.5 bil. yen
Dividend per share (plan): 110 yen(1H: 55 yen, Year-end: 55 yen)

CF provided by operating activities
Approx. 54.0 bil. yen

Cash Flow

Budget for investment

In the event of a shortfall in capital, usageof cash and deposits, redemption of
investment securities and various type offinance will be considered

Capital investment: 39.4 bil. yen
Business investment: Depends on opportunities

Shareholder Returns(Dividends) ⚫

Dividend increase reflecting favorable financial performance, with an aim for achieving average payout ratio of 40% or above.

☝ FY2019 1H: 55 yen (10 yen Increase), Year-end: 55 yen(10 yen Increase), Total 110 yen (20 yen Increase)

41.3% (Estimate): An average of payout ratio over the five years from FY2017 to FY2021☝ FY2020 1H: 55 yen, Year-end: 55 yen, Total 110 yen☝ FY2021 1H: 55 yen, Year-end: 55 yen, Total 110 yen (Plan)

Dividend per
share
Payout ratio

5-YearPlan

FY2017
Results

FY2018Results

FY2019Results

FY2020Results

FY2021Plan

Stabledividend

85 yen90 yen110 yen

110 yen

110 yenAverage 40%
38.4%*1or above

32.2%*1

59.2%*2

39.1%*2

37.6%*2*1 Based on J-GAAP*2 Based on IFRS(Treasury stock) ⚫

Consider stock repurchase with agility according to changes in management and business environments☝ FY2017 Executed stock repurchase in Nov.: 4,088,300 shares/ 22,935 mil. yen☝ FY2019: Cancelled 10% of the number of shares outstanding (May 24, 2018, 11,763,685 shares).
☝ FY2021: Consider the timing of stock repurchase, taking the market environment and business environment into consideration.

Strategic shareholdings☝ Plan to reduce the number of shares held in view of increasing capital efficiency, and sold some of the shares in FY2017, FY2018, FY2019
and FY2020.
☝ In FY2021, the Group will continue to consider the sale of strategic shareholdings in view of the market and business environment.
In accordance with internal investment rules, the Board of Directors is consulted over whether to continue to hold the individual
stocks.

19Market Capitalization（Bil. yen）

1,000

951.3

Market capitalization: Market base

900

866.9

803.3

Market capitalization: After deduction of treasury shares

937.5

800

724.8

694.2

700

791.6
621.4
642.2

515.1
500

768.5

546.8

600

428.3
369.6

400

369.4

344.4

363.6

651.5
571.5

300

483.1

513.1

2013/3

2014/3

410.8
354.5

200

348.0

324.5

2010/3

2011/3

341.0

100
0
2008/3

2009/3

2012/3

2015/3

2016/32017/3

2018/3

2019/32020/3Essence of the MTBP FY2021(Initial)

21

22

Medium-Term Business Plan FY2021 : Target Figures
Shift towards “profitability” from the current medium-term plan onwards

Overseas operating
income ratio

Becoming an“EARTHFOOD
CREATOR”

Toward FY2021“Recognition” asa global company

Toward FY2016“Evolution”
towards a global
company

11%

Overseas operating
income ratio

Overseas operating
income ratio

30% or higher

FY2016
Results
J-GAAP
Earning
powerthroughoperations

Value in
capitalmarkets

FY2021((

Reference
J-GAAP))

Targets
IFRS

550.0 bil. yen- bil. yen
47.5 bil. yen

468.1

bil. yen(

600.0

bil. yen)

24.7

bil. yen(

40.0

bil. yen)

Market Capitalization*2

570.0

bil. yen

Net Income/ Net Profit*3

26.9

bil. yen

Sales/ Revenue
Adjusted Operating Income*1(IFRS) Operating Profit

ROE

7.4

%

(J-GAAP) Adjusted EPS*4

196

yen

(IFRS) Adjusted EPS*5

189

yen

50% or higher

CAGR 10% or higher

1 tri. yen
33.0 bil. yenor
8 %higher- yen
330 yenPayout ratio: 40% or higher on the average for the five-year period*1: Only under the J-GAAP: Adjusted operating income = Operating income under the J-GAAP - Impact of retirement benefit expenses*2: Market capitalization = Share price × Shares outstanding at end of year (excluding treasury stocks)*3: “Net income attributable to owners of parent” under the Japanese GAAP, “Profit attributable to owners of the parent” under IFRS
*4: Adjusted EPS(J-GAAP)=Adjusted Operating income after tax + Equity earnings of affiliate companies + Amortization of goodwill (Including those contained in the equity
method subsidiaries) - Net income attributable to non-controlling interests /Average number of shares outstanding (excluding treasury stocks)*5: Adjusted EPS = (IFRS Operating profit ± Other income, expenses ‐Tax expense - Profit attributable to non-controlling interests) / Average number of shares outstanding(excluding treasury stocks)
The FY2016 values were estimated because there is no individual data.

23

Medium-Term Business Plan FY2021: Change in KPIs (Segment Information)⚫

Changes to Segment Targets Associated with the Shift to the International Financial Reporting Standards (IFRS) from Q1,
FY2019FY2021(IFRS) Revenue
550.0 bil. yen
Earning power(IFRS) Operating Profit
47.5 bil. yen
through
OP margin
8 % or higher
operations

30

Ratio of operating profit from overseas business(Domestic)（bil. yen）

Chilled/ Frozen,
Confectionery,
Beverages(Overseas)

FY2021

FY2021J-GAAP

IFRS

Plan

Plan

Revenue
Instant
Noodles% or higher

297.6（bil. yen）

243.0
The
Americas

FY2021

FY2021J-GAAP

IFRS

Plan

Plan

Revenue

80.8

80.8

Operating Profit

6.4

6.4

Operating Profit

29.5

29.1

OP margin

9.9%

12.0％

OP margin

7.9%

7.9％

Revenue

132.3

111.6

Revenue

53.7

53.7

5.2

5.2

Operating Profit

5.1

5.1

3.9%

4.7％

OP margin

9.5%

9.5％

Revenue

24.1

24.1

Operating Profit

0.5

2.0

OP margin

2.2%

8.3％

Revenue

8.3

8.3

Operating Profit

0.8

2.4

9.4%

28.9％

Operating Profit
OP margin

China(incl. H.K.)

Key currency exchange rates assumed in the plan
Currency

Exchange rate (yen per unit of currency)
FY2016FY2021

US$

120.14112.68

BRL

30.60

28.00

CNY

18.85

17.39

HK$

15.49

14.53

EURO

134.31131.77Asia

EMEA

OP margin* Based on exchange rates as of the date of the creation of the mid-term plan
* The values for targets for the China segment are those expected by NISSIN FOODS HOLDINGS.

Medium-Term Business Plan FY2021: Investment
Investment
Use capex and business investment by controlling them within the total amount of
250.0 billion yen for the five-year period of the medium-term plan

Capital Investment
FY2017-FY2021 (Plan) 150.0 bn yen(Policy)• Domestic: Investment aimed at saving
labor and strengthening safety/security
management in the instant noodle
business, in the interests of sustained
growth, etc.
• Overseas: Investment in strengthening
production systems in promising growthareas• General: Maintenance and upgrades

Business Investment (M&A)
FY2017-FY2021 (Plan) 100.0 bn yen

24Medium-Term Business Plan FY2021:Key Strategy Themes to Achieve Targets◼ Focusing on five key themes in pursuit of business profitability
Domestic

Overseas1

Instant noodles

Business32
Laying stronger
foundations for ourdomestic profit base

Other
products

4
Establishing a second
pillar that generates
revenue and profits

5
Platforms

PromotingGlobal Branding

Next
stage

Developing and strengthening
human resources for global
management

Focusing on priority
overseas locations

25

Strategic Theme 1

26

Promoting Global Branding ＞ Globalize CUP NOODLES

Actively rolling out CUP NOODLES, as a high value-added product that makes the most of
our strengths, to young people with a certain standard of living, in order to improve overseas
profitability
Sales price trends ineach country
x1.5 – 4

Bagtype[High margin]

Margin trends ineach country
Approx. x2

CUP
NOODLEsCUP
NOODLEs

Bagtype

CUP NOODLES > Bag-type instant noodles

Worldwide populationof young people

Middle-income populationin emerging countries[Expanding target market]

No decline in
number ofyoung people

Increaseof 40% in
10 years

Young people with a certain
standard of living2015 2020 2025 2030

2010

2015

2020

Rolling out global flavors (examples)
Seafood

Tom Yum Goong[NISSIN’s strengths]
Production technology and quality
control capabilities, based on expertisein noodles, soup, ingredients,
containers, etc.

Japan

Hong Kong

ThailandJapan

Strategic Theme 1•27

Promoting Global Branding ＞ Approach

Approaching clearly defined target markets with initiatives including design, flavor andpromotion with the aim of expanding more efficiently and effectively, and increasing
overseas CUP NOODLES sales (units) by 50%

Overseas CUP NOODLES sales (units) in FY2021: Up 50%(Compared to FY2016)

Strategic Theme 2•

28

Focusing on Priority Locations: BRICs

As markets continue to grow in scale and standards of living continue to improve, we haveearmarked BRICs as priority locations where we expect to achieve growth by harnessing
NISSIN’s strengths in each area.

Income*1 to be generated in the priority
overseas locations accounts for:Approx. 70% in FY2021(in income from overseas business)

Total demand for instantnoodles (unit basis)*2

Middle-income populationin emerging countries*3
BRICs
Approx. 50% increasein 10 years
BRICs

Others Total global BRICs
demand
47% 102.7 billion 53%

Approx.

70%

units

2010

2015
BRICｓ

*1 Income = Operating income + Equity method income*2 Source: WINA/2014*3 Source: NISSIN estimates based on data from various sources

2020
OthersStrategic Theme 2

29

Focusing on Priority Locations: BRICs – China and India✓ China: Making the most of our leading share of the growing market for upright cup-type noodle products
to expand our sales area
✓ India: Stepping up promotion of CUP NOODLES to rapidly growing population of middle-income earners,
as well as tapping into growth in bag-type instant noodle products
India

China
Scale of market for
upright cup-type
noodle products*1

Market environment◼

◼

Thriving market for upright cuptype instant noodle products,
with significant growth year on
year

Market environment◼

Average annual
growth rate

39%◼

Continuing trend towards
growth in middle-income
earners, particularly in urban
areas
Opportunities for NISSIN

2013

◼

Holding approx. 60% share of
the upright cup-type noodle
market◼

Still room for growth throughexpansion of sales area
Most popular:
Seafood*1 Source: Nielsen 2015

2014

2015

Underlying recovery following a
one-off significant contraction
due to market turmoil last year

Up approx.
100%

Anticipated growth in cup-type
noodle market in the future due
to increase of middle-income
earners

Opportunities for NISSIN◼

Our sales up 100% year on
year even after the
comeback of the leading
manufacturer◼

Growth being backed up by
food safety initiatives

2nd most popular: ◼
Five-spice beef

Still small scale, but NISSIN
has a leading share of the
cup-type noodle market*2 Source: Internal data

Indo Nissin sales (units)
year on year*2(Jan-March)

2015

TOP
RAMEN

2016

CUP
NOODLESStrategic Theme 2

Focusing on Priority Locations: BRICs – Brazil and Russia•
Establishing strong foundations as market leader in both Brazil and Russia✓ Brazil: Building on strong foundations to reinforce CUP NOODLES and establish a base of operations for
expansion into South America✓ Russia: Strengthening support structure in order to secure an even greater market share and increase
incomeBrazilRussiaMarket environment◼
◼

Total demand of 2.4 billion units(10th place worldwide)
Cup-type noodle market stillaccounts for around 4% plenty of room for further
growthMarket share*

Others36%
NISSIN◼

Capitalizing on Brazil NISSIN’s
overwhelming market share todevelop cup-type noodle market

Total demand of 2.0 billion
units (11th place worldwide)◼

Cup-type noodle market
accounts for around 25%

Market share*

Others Mareven
54%
46%

Opportunities for NISSIN

Nissin Lamen

Plans to launch a new CUPNOODLES promotion project in fall
2016

CUP NOODLES*Source: Nielsen 2015◼

64%

Opportunities for NISSIN◼

Market environment◼

Mareven Food (JV) has
excellent brand recognition◼

Powerful nationwide sales anddelivery network◼

Still scope for growth throughincreased cooperation ontechnology, product development,
etc.

Rollton (bag)Rollton (tray)30

Strategic Theme 3

Laying Stronger Foundations for our Domestic Profit BaseDeveloping the domestic instant noodle market further, investing in sophisticating plants toimprove food safety and production efficiency, and achieving stable profit over the long term
Operating income from domestic
instant noodle business

JPY 25.3 bn

JPY 29.5 bn*(FY2016 Actual)(FY2021 Plan)

Develop the domestic instant noodle market further
Product proposals/communication aimed at specifictarget market◼ Encouraging the “next generation”
Successful communication with young generation:
trend towards more experience of and interest in
eating noodles amongst target market

Investing in sophisticating plants
Rebuilding aging facilities, with an eye to restructuring
domestic plants◼ Further improving food safety and security◼ Cutting costs by saving labor, conserving energy andmanufacturing in-house

Kanto Plant
45 years old◼

Encouraging female
consumers◼

Tapping active seniors… etc.

Shiga Plant
43 years old

Shimonoseki Plant
41 years old

ShizuokaPlant
20 years old

Using robots to put
deep-fried tofu in bowl

Creating a “Century Brand Company”*Operating income for FY2021 Plan is based on J-GAAP. IFRS will be adopted from 1Q of FY2019. So, based on IFRS, operating profit for FY2021 Plan is JPY
29.1 bn.

31

Strategic Theme 4

32

As well as growing brands organically, we intend to strengthen cooperation to achieve
greater synergy, expand overseas operations and make the most of M&A, with the aim ofincreasing sales to JPY 100.0 billion, including partners.
◼

Stepping up cooperation between three existing companies-

NISSIN CISCO◼

Launching overseas expansion initiatives-

Brand withover 50
years history◼

Making the most of M&A to expand strong brands evenfurther(Sales)JPY 100 bn

KOIKE-YA Inc.
BonchiApprox.
JPY 65.0 bn

Brand withover 50
years history

No.1 forspicy flavors

No. 1 forsour flavors

Organic growth centeredaround Japan

VisionRapidly
growingmajor brand

Building on NISSIN’s overseas business foundations to
expand confectionery operations
Strengthening import and export business

AlliancesNo.1 best selling
cornflakes(unit base)Appointing outside executives to oversee theconfectionery business
Promoting groupwide cooperation on sales, marketing,procurement, etc.

Consolidation•

Establishing a Second Primary Revenue Source:
Confectionary/Cereal Business

FY2016FY2021

Additional
initiatives
M&A,
imports,
exports, etc.

Strategic Theme 4•

Establishing a Second Primary Revenue Source:
Chilled and Frozen Food Business/Beverage Business

Building on efforts to establish brands throughout the previous medium-term period inorder to increase profit growth domestically

NISSIN CHILLED FOODSNISSIN YORK

No.1 valueadded ramen
noodlesNo.1 in Tsukemen(dipping noodles)
category

No.1 two-serving
yakisoba(fried noodles)

No.1 inconvenience
store channel

NISSIN FROZEN FOODS

No.1 in regular
category

No.1 in fresh
pasta category

No.1 in spicy
category

Japan’s first
drinking yoghurt

33

Developing and Strengthening Human Resources for Global
Management

Strategic Theme 5

34

Having established a platform-based support structure, we intend to increase managementhuman resources and accelerate global management in the future, based on both humanresource development measures within the group and recruiting externally.
Expanding our pool ofmanagement human resources

100 people(FY2016)x2

200 people

Key posts(FY2021)43• Selection-based in-house
university program• Promoting diversity• Overseas trainee schemes
etc.

(FY2021)

2016

2016

19

6

Chief
representatives/
Businesscompanies

Strengthening humanresources for global
management

Businesscompanies

2021

24• Recruiting external
Chiefmanagement
representatives/
Business companies
human resourcesfamiliar with local
markets• Developing local executive
employees• Strengthening global capabilities
amongst management humanresources

Posts in FY2016
Posts added undercurrent mediumterm plan2021

Support12
Platforms

Having established a global support structure
built on NISSIN’s expertise

7

Businesscompanies

Section 2
Domestic Business Strategy

36

NISSIN’s Position in Instant Noodles Industry in JapanNISSIN’s Domestic Instant Noodles Biz
Twice as much as 2nd player’sMarket Share of
NISSIN FOODS GROUP: 52%
Sales base

(JPY bn)

300

Acecook
8.0%

Sales (Instant Noodles in Japan)
NISSIN’s Instant Noodles Sales in Japan
2nd player’s Instant Noodles Sales in Japan

250
200
150

Sanyo
15.0%

100

NISSIN FOOD
PRODUCTS
Toyo Suisan
43.5%
24.8%
MYOJO
FOODS
8.0%

NISSIN FOODSGroup Total
51.5％

CY2013

Total
24％ 48％50
0FY2014(JPY bn)

35

FY2015FY2016FY2017FY2018FY2020OP and OPM (Instant Noodles in Japan) (％)
NISSIN’s OPM in JapanNISSIN’s OP in Japan
2nd player’s OP in Japan

12.0

30

10.0

25

8.0

20
15

FY2019

2nd player’s OPM in Japan

6.0

10

4.0

5

2.0

0

Note: MYOJO FOODS is a 100% subsidiary of NISSIN FOODS HOLDINGS(Source: Nikkei Value Search 2013 - 2019)

0.0
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020(Sources: NISSIN: NFP+MYOJO, 2nd Player: Domestic instant noodles segment )Fiscal Year (FY) ended at March 31 of each year, J-GAAP bases

Annual demand in volume: 5.63 billion, Annual consumption in Japan : 44.6 servings/person(Population of Japan: 126.2 mil Source: WINA (January 2019 - December 2019) ,IMF(population)

37Power of NISSIN’s Brands in JapanNISSIN is ranked No. 5 in Japan Brand Recognition Ranking
Consumer Market (B to C), appraised by general consumers in 2020

Brand ranking
1YouTube

2

LINE

3

MUJI

4

Panasonic

5

NISSIN

6

Google7

Amazon8

CUP NOODLE

9

Kewpie10

STARBUCKS

Source: Brand Japan,
NIKKEI BP Consulting

2011: 5th
2012: 8th
2013: 9th
2014: 17th
2015: 3rd
2016: 25th
2017: 6th
2018:7th
2019:3rd
2020: 5th
2011: 27th
2012: 14th
2013: 15th
2014: 21st
2015: 24th
2016: 7th
2017: 5th
2018:52th
2019:22nd
2020:8th
Among 1,000 brand names, “Brand Japan,” arenowned survey company, makes a ranking list byusing four indicators: Friendliness, Convenience,
Uniqueness and InnovativenessTV Commercial
Success
TV Commercial Likability
Rating in FY2020(April 2019 - March 2020)

Corporate
1

KDDI

2

Kao

3

SoftBank

4

Coca –Cola

5

NISSIN FOODS

6

McDonald’s

7

P&G

8

Recruit

9

Kirin

10

NTT docomo

Source: CM Soken Consulting

38

Growth Strategy of Instant Noodles Business-1

Solid growth opportunities✓ Increase core target pool andapproach to new customer
targets of cup-type noodles

New
Generation
Core
TargetAges from 10-19“Active Senior”
Senior gen. enjoying an
economically affluent active life

Population Pyramid in Japan
Male
FemaleYears old

9590-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39

Female

30-34
25-29
20-24

Current
Core
Target

15-19
10-14

“Next Generation”
Young gen. which is expected to
expand our core target pool
Communication tailored to next generation-TV commercials-SNS-Web ads

5-9
0-4
-10%

5%

-5%

0%

0%

5%
5%

10%

%: Population of each bracket / Population total
Source: Bureau of Statistics, Ministry of Internal Affairs and Communications. Figures in Oct. 1 st, 2014

39

Growth Strategy of Instant Noodles Business-2“Active Senior”

FemaleSenior gen. enjoying an
economically affluent active life

Targeting for active senior and health conscious consumers“Next Generation”
Young gen. which is expected to
expand our core target pool

Featuring ethnic flavor
targeting at female

New
Generation
Core
TargetAges from 10-19

Communication tailored to next
generation-TV commercials-SNS-Web ads

Brand extension

40Core Brands of NISSIN FOOD PRODUCTS
CUP NOODLE and DONBEI achieved Record-high revenue for FY2020.

Since 1958

Since 1971

Since 1976

Growth Strategy of NISSIN’s Domestic Other Businesses◼ Confectionery and Cereal
Granola
50.0

.

43.3
36.9 39.3 36.1
37.0
24.5

40.0
30.0
20.0 .

4.9 6.1 9.4

10.0

41

◼ Chilled and Frozen Noodles
Focusing on high value-added products incompetitive markets by leveraging our accumulated
noodle-related expertise.

14.6

0.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source：Japan Snack Cereal Foods Association

Biscuit (sablé)Long-seller product since 1965 withrenewed brand image.
Granola and biscuit businesses areoperated by NISSIN CISCO Co., Ltd.

Deep-fried rice cakes.

Making “BonChi Co., ” one of the major
rice cracker companies, a consolidated
company since the 1st quarter of this fiscal
year. ended March 31, 2017

Chilled and frozen noodles are businesses operated by
NISSIN CHILLED and NISSSIN FROZEN, respectively.

◼ Beverages
Lactobacillus and yogurt drink
Cultivate value strategy to add
an appeal with “Food forSpecified Health Uses”
The first drink
yogurt launched inJapan and still
growing

Potato chips
Owning 34.53% of “KOIKE-YA Inc. ” asecond largest potato chips player andjoining forces to expand its business.

Beverage business is operated by NISSIN YORK Co., Ltd.

Section 3
Overseas Business Strategy

43

Global Demand Trend of Instant Noodles
Unit: Billion servings
120.0

Worldwide: Approx. 106.4 bil. servings
100.0

92.1 94.7

91.3 92.2

95.9

98.2

101.8

106.0 104.0

103.6
100.1
97.5 97.5

106.4

86.0
80.0

80.0

69.8
60.0

40.0

20.0

0.0
CY2003 CY2004 CY2005 CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014 CY2015 CY2016 CY2017 CY2018 CY2019(Source: World Instant Noodles Association) (Jan.- Dec.)
Figures up to CY2014 might not be exactly correct since WINA restates and endorses only past five years including the latest year.

44

Composition Rate of Bag-type and Cup-type noodles and GDP/Capita
U.K.

RussiaMainland China

H.K.

Worldwide Average

Cup-type
14%

47%

28%

29%

53%
71%

US$ 41,030

22%

US$ 11,163

Bag-type72%

86%

US$ 10,099

US$ 49,334

78%

Korea

GDP/capita -

34％

33%

U.S.A.

67%

India

US$ 31,431
34%

1%

66%

Japan

99%

US$ 65,112

Mexico5%95%

US$ 2,17230%

US$ 10,118

70%

US$ 40,847

Thailand
Vietnam
15%

Singapore

Indonesia

85%

18%

95%

US$ 2,740

4%

10%

5%

US$ 7,792

BrazilPhilippines

82%

US$ 63,987

8%
92%

90%

US$ 4,164

US$ 3,294

96%

US$ 8,797(Volume Base, Source: World Instant Noodles Association in CY2019) (Jan.- Dec.)（GDP/Capita, Source: IMF website）

45

CUP NOODLES Strategy- 1
Actively rolling out CUP NOODLES, as a high value-added product that makes the most of
our strengths, to young people with a certain standard of living, in order to improve overseas
profitability
Sales price trends ineach country
x1.5 – 4

Bagtype[High margin]

Margin trends ineach country
Approx. x2

CUP
NOODLEsCUP
NOODLEs

Bagtype

CUP NOODLES > Bag-type instant noodles

Worldwide populationof young people

Middle-income populationin emerging countries[Expanding target market]

No decline in
number ofyoung people

Increaseof 40% in
10 years

Young people with a certain
standard of living2015 2020 2025 2030

2010

2015

2020

Rolling out global flavors (examples)
Seafood

Tom Yum Goong[NISSIN’s strengths]
Production technology and quality
control capabilities, based on expertisein noodles, soup, ingredients,
containers, etc.

Japan

Hong Kong

Thailand

Japan

46

CUP NOODLES Strategy- 2•

Approaching clearly defined target markets with initiatives including design, flavor andpromotion with the aim of expanding more efficiently and effectively, and increasing
overseas CUP NOODLES sales (units) by 50%

Overseas CUP NOODLES sales (units) in FY2021: Up 50%(Compared to FY2016)

47

Overseas Expansion(wholly-owned/equity-method/investing)
As of March 31, 2020

The Americas

The U.S.
MexicoChina

BrazilHong Kong
Asia
EMEA

Singapore

EuropeIndia

Russia(equity-method)Thailand

Main Land China

Indonesia
VietnamPhilippines(equity-method)Thailand(equity-method)
Due to the adaption of IFRS from Q1 FY2019, operating profit includes non-amortization of goodwill(including affiliates accounted for using equity method), ｇain (loss) on investments
accounted for using the equity method, and extraordinary gains and losses.

Relationship with Premier Foods plc

48⚫ March 24, 2016
Entered into a conditional co-operation agreement with Premier Foods plc: on utilization by both parties of their respective distribution networks, joint development of products,
cooperation in research and development, manufacture by one party of the other party's products andothers.

⚫ Pursuant to the terms of the conditional co-operation agreement,
NISSIN FOODS HOLDINGS has the right to appoint a non-executive director to the Board of Premier forso long as it holds an interest in shares representing 15 percent or more of the ordinary issued sharecapital of Premier.
- As of March 23, 2018, Shinji Honda is appointed as a non-executive director and as NISSIN’s
managing executive officer(CSO).
- Percentage of shares acquired: 19.6% (As of March, 2019)⚫ February - October 2017
Super Noodle in Pots is one of the NISSIN’s collaboration with Premier Foods.
They are available in the classic Super Noodles flavors - Chicken, Curry, Bacon and BBQ Beef.
Alliance with Premier Foods for selling Soba and CUP NOODLES.
Outline of Premier Foods
Name:

Premier Foods plc

Location:

Hertfordshire, UK

Business:

Production and distribution of processed foods, cooking source and confectionary

49

Growth Drivers by Geographical Area
(JPY bn)
March
2016(Actual)J-GAAP

March
2017(Actual)J-GAAP

March
2018(Actual)J-GAAP

March
2018(Actual)
IFRS

March
2019

March
2020

(Actual)(Actual)

IFRS

IFRS

March
2021
(Mid-termPlan)IFRSSales/
Revenue

48.3

60.4

64.5

62.5

63.4

65.9

68.0

OP/OI

1.1

2.3

2.0

2.4

(5.2)

4.1

4.3

Sales/
Revenue

40.9

36.0

42.6

40.1

41.4

43.1

47.0

OP/OI

4.1

3.4

3.6

4.1

3.8

4.9

4.9

Sales/
Revenue

7.2

9.0

9.4

9.2

11.4

11.3

13.5

OP/OI

(2.0)

(1.4)

(1.4)

(0.4)

1.8

2.4

3.4

Sales/
Revenue

4.6

4.6

5.9

5.9

6.8

7.4

7.5

OP/OI

(0.4)

0.0

(0.5)

0.2

0.6

1.1

1.4

FiscalYear

The
Americas

China(incl. H.K.)

Asia

EMEA

In light of changes in the business environment, we have revised segment targets for March 2021.

Growth Drivers

Brazil:✓ Significant growth by
expanding cup-type
noodle market through
CUP NOODLES strategy
CUP
NOODLES✓ Secure dominant market
Strategy
share in the growing
premium instant noodle
marketMainland China:

India: Growth potential
backed up by vast
population and middleincome earners at 8
metropolitan cities
Thailand: CUP NOODLES
and sales grow thanks tothe change of retail industry✓ Under the transition
period from stable profit
base to expansion ofsales and profit

50

Brazil: Overview of BusinessHistory of Brazil Business
1965 Local instant noodles company was established by Taiwanese (Named “MIOJO AIMENTOS”)
1972 Capital injection from Ajinomoto Co., Ltd.
1975 Capital injection from NISSIN FOODS HOLDINGS →JV btw. Ajinomoto & NISSIN (55:45)
1983 Change in ownership (50:50) and name: NISSIN AJINOMOTO ALIMENTOS LTDA.
2002 Started to manufacture cup-type instant noodles
2013 Started operation of new factory, “Gloria do Goita”
2015 (October) Became a 100% subsidiary of NISSIN by acquiring 50% for 32.5 billion yen

Instant Noodles Market Transition

Sales Expansion(Source: World Instant Noodles Association) (Jan.- Dec.)

Serving per capita(line chart)

Billion serving(bar chart)
2.5

BRAZIL NISSIN
Sales (BRL)

14.0

12.0

2

10.0
1.5
1
0.5
0

8.0

Market size:
2.45 bil.

11.7 servings
per capita

6.0
4.0

2.0
0.0
14/3

15/3

16/3

17/3

18/3
IFRS

19/3

20/3

51

Brazil: Overview of Business
NISSIN’s market share (unit base）

Cup/Bag instant noodle composition (unit base）

Worldwide average◼ BRAZIL NISSIN

CY2016
Cup type◼ Others

28%

Brazil market
3%

21%

62%

Cup type

Bag type 79%

Overwhelming share

CY202010%Growth potential
Bag type
97%

Source: NISSIN CY2019[ Average of world market CY2016 ]Source: NISSIN

US$8,797

Relatively high GDP per capita[ Brazil market CY2016→CY2020 ]Source: NISSIN

Source: IMF/2019

Economy seemed to hit the bottom

New CUP NOODLES was launched in Sept. 2016
• High name recognition as No. 1 player• Offer food sampling to have consumers realize its quality and value• Have consumers feel a sense of familiarity to the product byleveraging social media
Gain a good response and confidence mainly in cities insoutheast and south areas

Capabilities in technology andproduct development

Enhance marketing52

China: Overview of Business
100 million
servings

1.4 bil. people
Large population

41.5 bil.
servings/year
◼

450
400
350
300
250
200
150
100
50
0

Instant noodle market (unit base） Instant noodle market of tall cup-type(unit base）
444
404.3

Source: WINA/2019

Large demand（Instant noodles）

385.2

389.6

402.5

414.5

Source: WINA/2019

Getting Shrinking-instantnoodles market moving again

3/15

3/16

Expanding tall cup-typeinstant noodles market size
Increased 70％
2 years◼ inSource:
NISSIN

Hong Kong

Mainland China• Further improvement of business basethrough business diversification

Instant noodles

3/17

◼

Source: NISSIN• Brand development in the rapidly growing
premium market• Further penetration of CUP NOODLES brand• Expansion of sales and distribution networks• Business diversification (manufacture andFrozen Foods Potato chips sale of potato chips)
Joint venture with• Quality control that is characteristic of a
Kagome, a fruit beverage
manufacturer(from July
Japanese company
2018)

Listed on the Hong Kong Stock Exchange Main Board (December 11, 2017)＊The management policy of the China segment is a role expected by NISSIN FOODS HOLDINGS.

53

China: Production Capacity Enhancement and Sales Offices⚫ 53 sales offices and 13 admin. offices in distributor’s offices
as of March 2020
(include. Zhuhai Golden Coast Winner Food Products ltd)

Large portion of each amount below is
to be appropriated for capital investment.

Zhejiang Plant（浙江日清）

Manufacture instant noodles
Completed in May 2017

Fujian Plant（福建日清）

Manufacture instant noodles
In operation from April 2016

Approx. 5.7 bil. yen
Approx. 4.0 bil. yen

Guangdong Plant（広東日清）
Dongguan Plant（東莞日清 包装）

Zhuhai Plant（珠海永南）NISSIN Plant in H.K.
（香港日清 グラノーラ)

NISSIN Plant in H.K. (Cup)（香港日清 カップ麺）

Manufacture granola withproducts sales having
commenced in January 2019NISSIN Plant in H.K. (Bag)（香港日清 袋）HK$30.0 million

Winner Plant（永南食品 冷凍）Manufacture instant noodles
In operation from April 2017

Approx. 6.0 bil. yen＊The management policy of the China segment is a role expected by NISSIN FOODS HOLDINGS.

Manufacture packaging materials
In operation from May 2015

Approx. 2.4 bil. yen

54

India: Overview of Business1.4 bil.
peopleLarge population
Source: IMF/2019

Growth rate
７.2％
High rate of economic growth

8 metropolitans

Population2011 Extended UA（000’ people）

Delhi

21,753

Greater Mumbai

20,748Kolkata

14,618Chennai

8,918

Bangalore

8,729

Hyderabad

7,749

Ahmedabad

6,352

Pune

5,050

100 million
servings

80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Industry-wide
voluntary recall

Recovery from industry-wide voluntary recall

Source：“INDIA STATS : Million plus cities in India as per Census 2011

Population concentration in metropolitans

Instant noodle market size
(unit base）

Expected growth rate: more than 10%
Source: WINA/2019

Expand sales of bag-type noodles• Increased coverage ratio after the industry-wide
voluntary recall

11INR

20INR

• Sales growth supported by the large population• Growth potential seen in the low eating rate

Further penetration of the CUP NOODLES
50INR• Expansion in large cities where high and middle
income households are concentrated• Development in public facilities such as airports

45INR• An increase in brand recognition and repeat
customers

Differentiation from competitors
to strength CUP NOODLES’ variety• Introduction of “MALAI KOFTA”, which is one of
the most popular meals in India in October 2019

MALAI
KOFTA
50INR

Promote local personnel to senior executives in major overseas areas
Build local area-based strategies based on management familiar with
culture and business customs, etc.
INDO NISSIN FOODS PRIVATE LTD.

President: Gautam Sharma

Since Jan. 2014

He has worked for several global consumer goods manufacturers and until recently served as the president of a local Indiansubsidiary of a leading U.S. manufacturer. He has enormous connections in India and developing more attractive new products
tailored to local tastes.

NISSIN FOODS (U.S.A.) CO., INC.

President: Michael J. Price Since Oct. 2018

He worked for a leading food company in the U.S. for many years. Served as the general manager of divisions for the
beauty and restaurant businesses. Joined NISSIN FOODS (U.S.A.) in 2015. Served as Vice President in charge ofthe sales division. Took office as president.

NISSIN FOODS DE MEXICO S.A. DE C.V. President: Luis Javier Gomez Martinez
He worked in sales, logistics and marketing for many years at a food and consumer goods manufacturer in Mexico.
He also has extensive management experience.

Since Sep. 201755

Developing and Strengthening Human Resources for Global Management

56◼ Global training, etc. of the NISSIN FOODS Group“Brand marketing in the digital age” (2016 - )• It consists of three parts: “What is CUP NOODLE?” “Mechanism of brand marketing in the digital age” and “Workshop.”• We provide the training by visiting Brazil, the United States, India, Mexico and Asia.
“Global IT meeting 2019” (Nov.11-12, 2019)• Eleven overseas managers including those in charge at overseas companies discuss their activities and issues in sessions
related to IT vision, IT strategy, and security.
“Survival training on a deserted island” for new management level employees (Aug.29-31, 2019)• 27 new management-level employees of Group companies in Japan, and 4 management-level employees in local subsidiaries
in the China/Hong Kong segment participated in the training on a deserted island.
“Global Finance meeting 2018” (Nov.12–15, 2018)• Financial training for 15 employees including those in charge ofaccounting overseas.

Section 4
Corporate Governancefor Sustainable Growth58

Management centered on Corporate Governance
Enhancement of Corporate Governance➢

Clearly segregate management oversight from business execution and enhance supervisory function by the board of directors➢

Reflect opinions from outside directors at the board of directors, and verify the validness of management strategies and checkif the strategies are properly executed from stakeholders’ point of view

New structure

New structure

Board of Directors

8

Audit & Supervisory Board

members

members２
Representative
Directors

１

２

3

Director

OutsideDirectors

Independent
Outside Directors

Previous structure

３

６

Board of Directors

２

２

13

members

Representative Directors Outside
Independent
Directors
Directors Outside Directors

３

１

２

Audit &
Supervisory
Board
MemberIndependent Outside
Audit & Supervisory
Board Members

３

These structures are effective from June 28, 2016.

Effective Nov. 2015

Management Advisory Committee
Members • Representative Directors

Effective Nov. 2015
Liaison conference of Independent Outside Directors
and Audit & Supervisory Board Members
To supplement the lack of information of Independent Outside
Directors, Audit & Supervisory Board established “Liaison
conference of Independent Outside Directors and Audit &Supervisory Member” (New conference body）• Independent Directors• Independent Audit & Supervisory Board Members
The Company newly established an advisory organ of the Board of
Directors, the majority of which were Independent Outside Directors
and Independent Outside Audit & Supervisory Board Members, toensure transparency and fairness in nomination, remuneration, andgovernance

59

Major Achievements of the effective Board of Directors◼ Abolition of the Takeover Defense Measures: December 6, 2017
The resolution was passed at the meeting of the Board of Directors after deliberations by the Management Advisory
Committee, the majority of which are Independent Directors/Audit & Supervisory Board Members, and the measures wereabolished on the day.

◼ Set up “Risk Management Committee” : February, 2008
Strengthen of the function: April, 2018⚫

⚫
⚫

The Company set up a “Risk Management Committee” with Executive Vice President &Representative Director, COO serving
as chairperson to prevent, identify, manage, and address against various risks in regard to NISSIN FOODS Group; Especially,
it focusses on 4 crucial risks of the group:1) Product accident, 2) BCP, 3) Compliance, 4) Information security. It covers not
only domestic, but also overseas subsidiary companies.
4 committees of the above crucial risks are required to report incidents and countermeasures to the Board of Directors once a
year respectively.
The Company shall set up an organization under the Sustainability Committee to address environmental and safety risks. In
the event a material accident occurs in environmental aspects, pursuant to the manual, it shall be immediately responded,stabilized, and resolved. In addition, the Company shall review various manuals including “Industrial Waste Treatment
Manual” as necessary and confirm the status of the operation on a regular basis.
Board of Directors

Structure of Risk Management(revised on May 27, 2020)

Report / Direction

Risk Management Committee

Management Committee

Report / Direction
Audit

Internal Auditing
OfficeChief Officers
LiaisonHead of group Risk Management
Report / Direction

Collecting
Info.

Risk Management Office
Collecting info./ Direction

Product Accident Countermeasure Committee
BCP Committee
Compliance Committee
Information Security Committee
Sustainability Committee
Collecting info.

Heads of Business Divisions (including Associates in Japan and Overseas)

Direction

Section 5
Overview of NISSINOrigin of NISSIN FOODS✓ In 1958, the world’s first instant noodles, CHICKENRAMEN, was invented by Momofuku Ando, the founder of
NISSIN FOODS. It is reasonably priced and tasty noodles
that can be prepared simply by pouring boiled water.

✓ In 1971, the world’s first cup-type instant noodles, CUPNOODLE, was introduced.
✓ Domestic instant noodle industry size has grown tobe 5.6 billion servings and NISSIN Group has No.1

market share: approximately 50%.
✓

Instant noodles, which we had invented, penetrated
throughout the globe and worldwide market size

reached 100.0 billion servings.

61

62

Business Portfolio of NISSIN FOODS Group - 1
Chicken Ramen is the origin of NISSIN✓ Founder’s Spirit“Peace will come to the world when there is enough food”“Create foods to serve society”◼ Food Safety“Eat wisely for beauty and health”◼ Research of health foods“Food related job is a sacred profession” & lactobacillus

CUP NOODLE is the symbol of innovation✓ Product Development Technology
1: Noodle Making
2: Frying
3: Drying

4: Baking✓ Marketing and Branding◼ Chilled and Frozen Noodles◼ Confectionery◼ Cereal

63

Business Portfolio of NISSIN FOODS Group- 2

Domestic

Overseas◼ NISSIN FOOD PRODUCTS CO.,LTD.
Instant Noodles
Health Foods

Instant RiceSoup

◼ MYOJO FOODS CO., LTD.

◼ The Americas

Headquarters

U.S.A.

•••

MexicoInstant Noodles◼ NISSIN CHILLED FOODS CO., LTD.
Chilled Noodles & Soup

Management
Strategy development
Supporting operations
by 12 platforms◼ NISSIN FROZEN FOODS CO., LTD.

◼ NISSIN CISCO CO., LTD.

R&D center

Cereal◼ BonChi CO., LTD.
Note: Equity interest held by NISSIN in is 50．1%

Hong Kong

Singapore

India

Thailand

Vietnam◼ EMEA◼ NISSIN YORK CO., LTD.

7 operating companies

Mainland China

Indonesia

Rice cracker

Health foods & Lactobacillus Drinks◼ China◼ AsiaFrozen Noodles, Rice and Snack

Confectionery

Brazil•••Innovation
Product Development
Technology
Food Safety

Europe4 operating areas

64
64

Structured Above the Holding Company（Platform Management）
As of March 31, 2020
EuropeNISSIN

Singapore NISSIN
66％

Thailand NISSIN
66％
Indonesia NISSIN*Equity method**Non-consolidated

MAREVEN Food*
Russia/Ukraine

66％

33.5％
Vietnam NISSINNURC*

NISSIN FOOD PRODUCTS

Philippines 49%
India NISSNMYOJO FOODS

66%

4 overseas areas
NISSIN CHILLED FOODS

PRC and H.K.

Asia

EMEA

NISSIN FROZEN FOODS

Brazil NISSINNISSIN CISCO Koikeya*

China

34.53％

Mexico NISSIN

U.S. NISSIN

Bonchi50.1％

Domestic

The Americas

NISSIN YORK

R&D

Food
SafetyProcure‐ment

Productio
n & Distri.

Brand
Comm.

Strategy

Finance

Information
SystemCorporate
Comm.

Legal

HR

GeneralAffairs

CDO

CQO

CRO

CPO

CMO

CSO

CFO

CIO

CCO

CLO

CHO

CAO

12 platforms
NISSIN FOODS HOLDINGS CO., LTD.

65

Domestic (Japan) Demands of Instant Noodles in Volume

Instant noodles’ history started with Chicken Ramen in 1958
( Unit: mil. servings )Total market size has been stable
at around 5.5 bil. servings for recent years

6500
6000
5500

Cup-typeBag type
Cup type
instant noodles started with
Cup Noodle

1976

5000
4500

1992

1971

4000

Cup-type market
gained momentum
by our products

3500

Cup type
market size in volume

3000
2500
2000
1500

1000

Instant noodles
started with
Chicken Ramen

1958

Bag type
market size in volume

2012

In 1989
Cup-type market overtook bag-type market

0

1,958
'59
'60
'61
'62
'63
'64
'65
'66
'67
'68
'69
'70
'71
'72
'73
'74
'75
'76
'77
'78
'79
'80
'81
'82
'83
'84
'85
'86
'87
'88
'89
'90
'91
'92
'93
'94
'95
'96
'97
'98
'99
2,000
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
'17
'18
'19

500

（Source）JCFIA=Japan Convenience Foods Industry Association （http://www.instantramen.or.jp ）66

Domestic Market Share of Instant Noodles
Market Share (Bag + Cup)

FY2020
Cup-type

NISSIN FOODSGroup Total
51.5％
Acecook
8.0%
Sanyo
15.0%

NISSIN FOOD
PRODUCTS
43.5%

VolumeAmountNISSIN

44% (1st)

47%(1st)

MYOJO

7% (4th)7% (4th)Others49%

46%

Bag-type

NISSIN has No.1 market share

Toyo Suisan
24.8%
MYOJO
FOODS
8.0%
Sales base

NISSIN has No.1 market share

VolumeAmountNISSIN

24% (1st)

23% (1st)

MYOJO

7% (4th)6% (4th)Others69%

71%(Source: Nikkei Value Search 2019 )(Source: NISSIN, From April 2019 to March 2020)

67

Global Demands of Instant Noodles in Volume- by Country
Europe,
5.6(Billion servings)
In Descending Order
Rank

Country

America,
5.5

Total: 106.4 bn

Categorized by Four Areas

Jan. 2019- Dec. 2019

Volume(bil. serving)

Per capita(serving)

Per capita
(GDP)

1

China
H.K.

41.4

29.3

China: 10,099
H.K: 49,334

2

Indonesia

12.5

46.9

4,164

3

India

6.7

5.0

2,172

4

Japan

5.6

44.6

40,847

5

Vietnam

5.4

56.9

2,740

6

U.S.A.

4.6

14.1

65,112

7

Philippines

3.9

35.5

3,294

8

Korea

3.9

75.1

31,431

9

Thailand

3.6

52.5

7,792

10

Brazil

2.4

11.7

8,797

11

Nigeria

1.9

9.6

2,222

12

Russia1.9

13.0

11,163

13

Nepal

1.6

57.6

1,048

14

Malaysia

1.4

44.1

11,13715

Mexico1.2

9.7

10,118Nigeria, 1.9

Russia, 1.9

Others, 0.7

Mexico, 1.2

Brazil, 2.4
U.S.A., 4.6

EMEA
6.3

Americas
9.0
Japan
5.6

Malaysia, 1.4
Nepal, 1.6
Thailand, 3.6

Korea, 3.9

China
Inc.HK,
41.4

Asia,
42.8

Philippines, 3.9
Vietnam, 5.4

Japan, 5.6
India, 6.7

Indonesia, 12.5

(Source: World Instant Noodles Association in CY2019) (Jan.- Dec.)

68

Major Players by Country
Germany
NestleNISSIN

RussiaMareven
OthersOthers

Mainland China
Tingyi

Mainland China
Premium (Upright cuptype) market only

Toyosuisan

Uni-President

NISSINNISSIN・・・

Uni-President

NISSIN
OthersU.S.A.

OthersOthers34％
MexicoHong
Kong

Toyosuisan

NISSINNISSIN

OthersOthersIndia
NestleJapan

ITC

NISSINCG
Foods

Toyosuisan

・・・

BrazilNISSIN
M Dias Blanco

Sanyo

Selmi

Myojo

OthersNISSIN
AceookThailand

OthersOthersThai President
VietnamThai Preserved Food

AcecookAjinomoto
・・・
NISSIN
OthersSingapore

Indonesia

Myojo

Indofood

Philippines

Asia Foods

NestleWing’s Food

Monde Nissin

・・・

NISSIN・・・

N-URC

NISSIN

OthersNISSIN

OthersOthers

Masan

Others(Volume base, Source: Estimation by NISSIN in CY2020(Jan.-Dec.）

For Sustainable Growth： Innovation and Food Safety
We centralized and strengthened the product development and food safety research capabilitiesof the Group to enhance our ability to be innovative in quality.

INNOVATION

69

69

FOOD SAFETY◼ NISSIN Global Innovation Center✓ Providing technical support for
innovation for product development◼ NISSIN Global Food Safety Institute✓ Ensuring the food safety essential toa food product company◼ Realizing group-wide synergy with an
integration of instant noodles, chilled
and frozen foods, confectioneries andbeverages, to be more innovative.

◼ Global center for the transmissionof information about instantnoodles and quality control towerof the entire instant noodle
industry.

Outline of “the WAVE”, the NISSIN FOODS Group’s R&D center◼ Operation started: March 2014
◼ Commonly called: “the WAVE”◼ Site area: 86,768 m2(site owned by the Company)◼ Total floor space: 19,708 m2

70

Investor Information of NISSIN FOODS HOLDINGS
Information

Principal Shareholders

As of March 31, 2020

As of March 31, 2020＃of Shares
Held(Hundred)

Holding ratio(%)

NISSIN FOODS HOLDINGS CO.,LTD.

Ando Foundation

79,043

7.58

Mitsubishi Corp.

78,000

7.48

Date of Establishment

September 1948

# of Employee

12,983 on a consolidated basis

The Master Trust Bank of Japan,
Ltd. (Account in Trust)

55,734

5.35

ITOCHU Corp.

54,000

5.18

Common Stock

Authorized: 500,000,000 shares
Issued: 105,700,000
Number of shareholders: 50,175

Ando International Y.K.

39,454

3.78

Japan Trustee Services Bank,
Ltd. (Account in Trust)

36,954

3.54

Name

Share Capital

JPY 25,122 million
Tokyo Stock Exchange
1st section (Ticker Code: 2897)

Mizuho Bank, Ltd.

33,750Stock Listings

3.23

MUFG Bank, Ltd.

22,735

2.18

Independent Auditors

Deloitte Touche Tohmatsu LLC

Japan Trustee Service
Bank(Account in Trust5)

17,377

1,66

Transfer Agent

Mizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Banking Corp.

16,2001,55

Distribution of ownership among shareholders(Note) Holding ratio is calculated with total number of shares issued,
excluding treasury stock (15,293 hundred shares), as the denominator.

As of March 31, 2020

Other
Corporations
34.71

Treasury
Stock
1.45

Individualand others
13.73

Financial
Institutions
30.35

Foreign
Corporation
19.76 (Note)Ownership ratio of shares is calculated excluding the shares less than one unit.

71

71

Note: FY2020 generally means the fiscal year from April 1, 2019 to March 31, 2020.
CY2019 generally means the calendar year from January 1, 2019 to December 31, 2019.

Information in this material is not intended to solicit
sales or purchase of NISSIN FOODS HOLDINGS
stock shares. The comments and estimates in thisdocument are based on the company’s judgment at
the time of publication and their accuracy is notguaranteed. They are subject to change without
notice in the future. The company and its officers
and representatives hold no responsibility for any
damage or inconvenience that may be caused byany part of this material.
Contact:
IR Office (Tokyo Head Office)Tel: +81-3-3205-5027
E-mail: ir.jp@nissin.com
20200528 ver.