Corporate Value Maximization

NISSIN FOODS HOLDINGS CO., LTD.
Stock Code: TSE 2897
May 2019

1

ContentsSection 1 Mid-Term Business Plan FY2021



Section 3

Overseas Business Strategy

Interim Review and Future Outlook-

Global Demand Trend of Instant Noodles・・・45-

Review of FY2021 Targets・・・4-

Cup Composition Rates and GDP/Capita・・・46-

Review of Targets by Segment ・・・5-

CUP NOODLES Strategy・・・47-

Regarding Market Capitalization of JPY 1 Trillion・・・ 6-

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

Review of Five Key Themes・・・7-

Review of Investment, etc. and Future Policy・・・8-

Relationship with Premier Foods plc・・・50-

Issues and Policies by Region/Business・・ ・9-Growth Drivers by Geographical Area・・・51-

Other Initiatives: For Realization of a Sturdier Management-

Brazil: Overview of Business・・・52

Structure・・ ・10-

China: Overview of Business ・・・54

Initiatives to Enhance Corporate Value・・ ・11-

China: Production Capacity Enhancement and Sales-

49

Achievements of the 3rd year of the MTBP FY2021

Offices・・・55-

Sales/Revenue, Operating Income/Profit & OPM-Consolidated・・・14-

India: Overview of Business・・・56-

Sales/Revenue, Operating Income –By Segment・・・15-

Promote local personnel to senior executives in major overseas-

Growth Trend of Instant Noodles Business・・・18-

Investment Plan, and Financial and Capital Policies・・・19-

Market Capitalization・・・21

areas・・・57-

Developing and Strengthening Human Resources for Global
Management・・・58

Essence of Mid-Term Business Plan FY2021(Initial)Section 2

Domestic Business Strategy-

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

Power of NISSIN’s Brands in Japan・・・39-

Growth Strategy of Instant Noodles Business・・・40-

Core Brands of NISSIN FOOD PRODUCTS・・・42-

Growth Strategy of NISSIN’s Domestic Other Businesses・・・43

Section 4

Corporate Governance for Sustainable Growth-Management centered on Corporate Governance・・・60-

Major Achievements of the effective Board of Directors・・・61

Section5

Overview of NISSIN

Section 1
Mid-Term Business Plan FY2021

MTPB2021
Interim Review and Future Outlook

4

Review of FY2021 Targets• Mainly revision to reflect actual situation of overseas business and went outside the M&A
budget.
Revised Mid-term Plan KPIs

Earning
powerthroughoperations

Capitalmarketvalue

Before review

After review

Revenue

550.0

bil. Yen

480.0

bil. Yen

Operating profit

47.5

bil. Yen

42.5

bil. Yen

Profit*33.0

bil. Yen

30.0

bil. Yen

ROE

Adjusted EPS**
Market capitalization***

8
330
1

%

8

%

Yen

284

tri. Yen

See page 5

Yen*”Profit attributable to owners of parent” under IFRS**(Operating profit ±Other income, expenses ‐Income tax expenses - Profit attributable to non-controlling interests)/ Average number ofshares outstanding during the fiscal year (excluding treasury shares)***

Market capitalization = Stock price x Number of shares outstanding at the end of the fiscal year (excluding treasury shares)

5

Review of Targets by Segment• In light of changes in the business environment and the issues of each region/business, wehave revised segment targets.
FY2021 Targets for Domestic Business(bil. Yen)

Instant
Noodles

Chilled andfrozenfoods,
confectionery andbeverages

Before review

After review

Revenue

243.0

238.0

Operatingprofit

29.1

29.5

%

12.0%

12.4%

Revenue

111.6

Operatingprofit%FY2021 Targets for Overseas Business
Before review

After review

Revenue

80.8

67.5

Operatingprofit

6.4

3.7

%

7.9%

5.5%

103.0

Revenue

53.7

47.0

5.2

5.2

Operating
China(incl. H.K.) profit

5.1

4.7

4.7%

5.0%

%

9.5%

10.0%

Revenue

24.1

13.0

Operatingprofit

2.0

2.7

8.3%

20.8%

Revenue

8.3

7.5

Operatingprofit

2.4

1.3

28.9%

17.3%

Foreign exchange
rate assumptions:

Initial plan

Current
assumption

USD

112.68110.00

BRL

28.00

28.00

HKD

14.53

14.00

EUR

131.77125.00(bil. Yen)

The
Americas

Asia

%

EMEA

%

6

Regarding Market Capitalization of JPY 1 Trillion• The Group will steadily aim for market capitalization of JPY 1 trillion as a target to be achieved along theway regardless of timing.
• The Group will aim for improvement of corporate value by focusing on initiatives from a CSV perspective.

Stock market trend: Changes in PER

Initiatives to improve corporate value

The PER of Japanese stocks has generally been ina downward trend since 2018 and market
conditions make our initial forecast of PER ≥ 30
unlikely.

Initiatives and achievements from CSV perspective

35.0x
30.0x

Nissin HD(1) Achievements✓

Selected as a component of the Asia/Pacific Index of the Dow
Jones Sustainability Indices✓

Certified as an organization recognized under the 2019
Certified Health & Productivity Management Outstanding
Organizations Recognition Program (White 500)✓

Selected as a semi Nadeshiko Brand company for fiscal 2019

Downward
trend(2) Environment-Friendly Management

25.0x

20.0x

✓

Introduction of ECO cups (paper-made containers)✓

Commenced the application of certified palm oil (RSPO) at
domestic plant

TOPIX

15.0x

(3) Initiatives for new Earth Foods
Nikkei 225

10.0x

5.0x

▲
At time of
Mid-term Planannouncementin May 2016▲
Most recently
in April 2019✓

Launch of basefood (All-in PASTA)✓

Research on “cultured steak”→

We will endeavour to further
accelerate and expand such initiatives
to increase corporate value.

7

Review of Five Key Themes
Strategic Theme

Initial FY2021
Target

FY2019 Results

FY2021 Forecast

1
PromotingUp 50%

global branding forcompared to FY2016(units)CUP NOODLESUp 20%Up around 30%

2Focusing onpriority locations(BRICs)3

Laying stronger
foundations fordomestic profit base

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

5
Human resources for
global management✓ Overall progress was slightly slow partly due tothe impact of price revisions in U.S. business.
✓ Growth in Brazil and Asia is expected.
✓ Depending on market conditions, we will not justfocus on “CUP NOODLES” and will look out for
growth opportunities for premium products.

✓ Target is expected to be reached.

Operating profit generated
in priority overseas
locations accounts for-

Around 70%

70%
NISSIN FOOD
PRODUCTS+ MYOJO FOODS

25.7 bil. yen

29.1 bil. yen

29.5 bil. yen

Operating profit target
4

Comments

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 1.8(Around 180 people)

X2(200 people)✓ Operation of Kansai Plant (improvement of
production efficiency, safety and security)✓ Stabilization of earnings base through price revision(in response to unexpectedly high costs)✓ Further enhancement of value of core brands✓ The Confectionary business grew steadily.
✓ The Cereal business increased its market presence
and value.
✓ In particular, revenue in the Chilled and Frozen
Foods business grew due to market growth andincreased demand for single-serving food products.
✓ Shift to more profitable business is necessary.
✓ The list is becoming more satisfactory.
✓ A plan for systematic personnel changes needed
to be created.

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

Initial plan

FY2019FY2021Business
investment

100.0 bil. yen
over 5 years

23.5 bil. Yenover 3 years–(Major investments)
Investment in Premier Foods, investment in Thai President Foods

Capitalinvestment

150.0 bil. yen
over 5 years

146.0 bil. Yenover 3 years

215.0 bil. Yenover 5 years(Reasons for extra investment)
NISSIN FOOD PRODUCTS (increased investment in Kansai Plant,
shift to in-house manufacturing of materials, chilled and frozen foodplant, etc.)
BonChi Yamagata Plant, Nissin Brazil, expansion of overseas lines,
etc.

Depreciation
andamortization

Around
19.0 bil. yen(FY2021)20.3 bil. yen

Around24.5 bil. Yen*

* The FY2021 forecast includes impact of application of IFRS 16 ofaround 3.0 bil. yen.

Review of business investment✓ We are still examining M&A deals.

Review of capital investment✓ Expansion of investment in safety/security

Although our operating profit target on an organic basis
remains the same, improvement in terms of ROI is needed.

✓ Expansion of investment aimed at improving
production efficiency and saving labor✓ Expansion of facilities for growing categories

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

8

Issues and Policies by Region/Business9• Moving forward, we will continue to implement the policy of promoting global branding. At the same time, wewill address specific issues according to the competition environment and market characteristics and makesure that we establish an order of priority for investment.
Instant
noodles

Chilled foodBe sure to tap into growth opportunities for noodles with ingredients and fresh pasta. Strengthen
proposals to growing channels.
Focus on high added value domains and pursue profitability.

Confectionery

Maximize revenue and profit by brushing up core brands and new value products.

Frozen foodDomestic

Beverages

U.S.
The
AmericasBrazilMexicoH.K.

China

MainlandChina
Indonesia

Overseas

India
Vietnam
Asia
Philippines
ThailandSingapore
EMEA

Respond to higher costs with price revisions. Respond to labor saving and labor population issue in● the medium and long-term through operation of Kansai Plant.

EuropeRussiaExpand a stable source of earnings through strengthen channels.
Strengthen earnings base through price increases and cost reductions, etc. and develop premium● products.
● Develop CUP NOODLES brand and strengthen sales of bag-type noodles, which are base of earnings.
Utilize strengths of local production and focus on priority regions. Strengthen profitability throughdevelopment of premium products.
Expand business opportunities through diversification. Strengthen marketing activities in mature
instant noodles market.
Expand market and maximize revenue and profits through high-grade noodles, rather than focusing
only on CUP NOODLES.
Determine priority regions/channels/segments and improve profit margins. Utilize as production base
● for HALAL products.
● Determine priority regions/channels/segments and improve profit margins.
Expand cup-type noodles focusing on urban areas and move plant operations and production
departments into profit through OEM within Group.
Maintain current high growth for CUP NOODLES through continuous investment. Also look for multi● branding opportunities.
● Expand and enhance 10-baht bag-type noodles. Continue to invest in CUP NOODLES.
Take advantage of position as market leader to strongly leverage “CUP NOODLES”, revitalize bagtype noodles and develop multiple categories.
Increase sales of major brands and strengthen earning base especially in priority areas, such as
Germany and the UK. Liquidation of Turkish business.
As market leader, activate Russia’s stagnating market through sales and marketing.

Other Initiatives:
For Realization of a Sturdier Management Structure

10• Shift to sturdier management structure that will allow us to focus on our core operations, through initiatives
in response to DX
Initiatives already implemented

New future initiatives

Achievement of Smartwork 2000

Steering toward DX• Improvement of productivity through workstylereforms and reduction of labor costs• Expansion of scope for creative work

• Review of business processes• Utilization of RPA and AI to save labor in simple
tasks• Expansion of scope for creative work

Reduction of expenses• Review of expenses on a groupwide basis• Elimination of waste and improvement of work
efficiency

Power BI
• Unite operating system
Reduce documentation process, visualize action
assignments, and improve portability in working environment

Smart Factory
Initiatives to reduce distribution expenses• Improvement of transport efficiency throughpallet transportation• Improvement of delivery efficiency through two
day delivery service
DX＝Digital Transformation

RPA = Robotic Process Automation• Manufacturing Execution System (MES)
Aim automation in various manufacturing processes• Nissin Automated Surveillance Administration (NASA)
Enable monitoring whole manufacturing processfrom central controlling room
BI = Business Innovation

11

Initiatives to Enhance Corporate Value (1)• Initiatives to enhance corporate value for sustainable growthInternational reputation

Evaluation of empowerment of women

Selected as a component of the
Asia/Pacific Index of the Dow
Jones Sustainability Indices,a group of global stock priceindices of ESG investments

Selected as “Semi-Nadeshiko Brand” in the“Nadeshiko” initiative run by the Ministry of Economy,
Trade and Industry (METI) and theTokyo Stock Exchange to recognize
enterprises that are outstanding in termsof encouraging the empowerment of
women in the workplace.

Evaluation of health management

Certified as 2019's White 500 for Outstanding Health andProductivity Management₋ Environment-Friendly Management◼

Using eco-friendly containers over thelast 11 years

NISSIN FOODS HOLDINGS, NISSIN FOOD PRODUCTS,NISSIN CHILLED FOODS and NISSIN FROZEN FOODS werecertified by METI and Nippon Kenko Kaigi as 2019's White 500
for Outstanding Health and Productivity Management.

Introduced ECO cups (paper-made containers)
in 2008. Reduced CO2 emissions by 22%compared and also contributes to reduced
consumption of plastics

₋ Initiatives for new Earth Food◼

Launch of basefood (All-in PASTA)✓ New “simple nutritious meal” that facilitates
daily intake of essential nutrients✓ Manufacturing by the newly developed“nutrient retention press manufacturingmethod” (patent pending)◼

Step towards commercialization of “cultured steak” withthe texture of real meat
✓ Successfully created the world’s first beef sinews in a
diced steak form

Introduction of ECO cups

* CO2 emissions are estimated through life-cycle assessment (LCA).

◼

First Japanese instant noodles manufacturer to use RSPO
Certified Palm Oil (at domestic plant)
NISSIN FOOD PRODUCTS
began using sustainable“Certified Palm Oil*” at its
Kansai Plant (from March2019).
* RSPO-certified palm oil is a type of palm oil that is produced andprocessed by considering the prevention of deforestation,
preservation of biodiversity, and protection of human rights.

12

Initiatives to Enhance Corporate Value (2)• Set value creation process to realize NISSIN Group philosophy• Connect our value creation process with SDGs
Our impacts on society (examples)

Eradication ofpoverty

We help give people equal access to safe food andreduce poverty in disaster-stricken areas bysupporting food security and donating part ofrevenues through organizations such as WINA and
WFP.

Promotion of
prevention of
non-infectious
diseases

We help prevent non-infectious diseases byimproving consumers’ quality of life through theprovision of products that meet social needs suchas products with zero sugar, reduced salt or
products for the elderly.

We will help enhance the nutritional value we
provide to consumers by providing products such
Enhancement ofas the “All-in Series” of basefood, meat protein
nutritional value
substitute (Soy meat), lactic acid bacteria, andnutritional supplements.
We are a member and a managing enterprise of
CLOMA (Clean Ocean Material Alliance), which
Measurestackles the problem of marine plastic waste, and weagainst marine
are promoting the development of eco-friendly
plastic pollution
packaging materials in collaboration withgovernment and other enterprises.
Promotion ofsustainableagriculture

We help our suppliers engage in sustainableagriculture by using raw materials, such as palm oil,that have been produced and processed withconsideration for protection of forests andbiodiversity and respect for human rights.

Achievements of the 3rd year of the MTBP FY2021(Fiscal Year Ended March 31, 2019)

14

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

J-GAAP

IFRS

540
516.4

520
495.7

500
480

480.0
468.1

465.0

460

440.9

451.0

440
420
400
2016/32017/3

2018/3

2018/3

2019/32020/32021/3

Forecast

Plan

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

Bill. yen

60

30

8.0

7.9

50
40

％

IFRS

6.6
5.6
26.4

5.3
24.7

28.6

5.8
32.9

6.6
6.5
34.1 33.4

35.2

37.0

5.9
29.0

20
10
0
2016/32017/3

2018/3

2018/3

2019/32020/3

9◆8% or higher 8
42.5
7
6
5
4
3
2
1
0
2021/3

Forecast

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

Plan

Sales/Revenue & Operating Income – by Segment-1

15

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

J-GAAP
265.2

274.4

269.2

250

Operating income/profit & OPM
Bill. yen
60

IFRS
222.2

226.1

234.0

238.0

50

J-GAAP
9.6

10.9

IFRS

11.1

％
14

11.6
11.6

12.4 12

11.4

10

40

200

30

150
100

20

50

10

29.5

30.3

8

29.5

27.1

25.7

25.5

25.3

6
4
2

0

0
Forecast0
2016/3

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

2017/3

2018/3

2018/3

2019/3

Plan

Operating income/ Operating profit

2020/32021/3

Forecast

Plan

OPM

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

J-GAAP

120

Operating income/profit & OPM

6
103.0

105
98.4

96.9

97.6

100.0

4

90

1

85

0
2018/36

2018/3

2019/3

4.5

4.6

3.9

4.1

4.5

5.0 5
5.2

4.6

2020/32021/3

Forecast

Plan

4

4.0
3

2.0

3
2

2017/34.0

595

2016/3

IFRS

7

112.8

110

100

J-GAAP

8

115.6

115

％

Bill. yen

IFRS

2

2.0
1.5

1.6
1
0

2016/32017/3

2018/3

2018/3

2019/3Operating income/ Operating profit

2020/3
Forecast

OPM

2021/3
Plan

Sales/Revenue & Operating Income – by Segment-2

16

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

J-GAAP
60.4

64.5

Operating income/profit & OPM
Bill. yen
10

IFRS
62.5

63.4

64.0

67.5

J-GAAP

5.5
3.8

30

2

20

0

10

-2

0

2016/3 2017/3 2018/3 2018/3 2019/3 2020/3 2021/3
Forecast◼ China

Plan

3.1

4.2

3.9

3.7
2.3

1.1

2.0

2.7

2.4

2
0
-2

2016/32017/3

2018/3

2018/3

2019/3
2019/3

-4
-6

6
4

2.2

4

40

IFRS

8
6

48.3

％
8

2020/32021/3

Forecast

Plan

-4
-6

-8

-8.3

-10

-5.2
Operating income/ Operating profit

OPM(Instant noodles in Hong Kong and Mainland China)
Sales/ Revenue

Bill. yen
10
J-GAAP
9
47.0
44.5
10.1
42.6
8
41.4
9.5
40.9
40.1
8.4
7
36.0
6
5
4.1
3.6
3.4
4
3
2
1
0
2016/32017/3
2018/3
2016/3 2017/3 2018/3 2018/3 2019/3 2020/3 2021/3

Bill. yen
50
40
30
20

10
0

Operating income/profit & OPM

J-GAAP

IFRS

Forecast

IFRS

10.0
10.2

10

9.2
8.5

4.1

8
4.7

3.8

％
12

3.8

6
4
2

0
2018/3

2019/3

Plan

Operating income/ Operating profit

2020/32021/3

Forecast

Plan

OPM

Sales/Revenue & Operating Income – by Segment-3

17

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

J-GAAP

Operating income/profit & OPM
IFRS
11.4

9.0

10

J-GAAP

13.0

12

8

Bill. yen
9

9.4

11.7

％
25

IFRS

21.4

20.8 20

7

9.2

16.0

5

7.2
3

6

2

-2.0

-1.4

-1.4

2.7

2.5

1.8

1

4

15
10

-0.4
5

-1

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

2016/3-3

2017/3

2018/3

2018/3

2019/3Operating income/ Operating profit◼ EMEA

2020/3 2021/3
Plan
Forecast

0

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

IFRS
6.8

7

5.9

6
4.6

％
20

Bill. yenBill. yen
8

5Operating income/profit & OPM

7.0

7.5

J-GAAP

9

IFRS

17.3

7

5.9

15

14.3

5

4.6

3

4
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
Forecast

Plan

10

9.3

0.4

0.6

1.0

1.3
5

2019/3Operating income/ Operating profit

2020/32021/3

Forecast

Plan

OPM

0

18

Growth Trend of Instant Noodles Business
Consolidated Sales Trend(bil. Yen)
600

CAGR
(FY2010-FY2019)

Overseas Businesses
Domestic Businesses excl. Instant Noodles

500

+9.8%
CAGR
(FY2015-FY2019)

496

Domestic Instant Noodles Business

468
418
400

301

375

381

383

53

52

51

54

300

83

84

89

89

74

93

432

110

440

451

118

123

+10.3%

101
83

94

102

16%

CAGR
(FY2010-FY2019)

+2.5%

117
101

102

26%

CAGR
(FY2015-FY2019)

+2.0%

200

CAGR
100

235

239

241

240

250

255

265

269
222

226

58%

(FY2010-FY2019)

-0.4%
CAGR
(FY2015-FY2019)-2.0%
0
FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019

IFRS

IFRS

19

Investment Plan, and Financial and Capital Policies (1)Capital Investment◼

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 inpromising growth areas, etc.
◼ Group-wide- Investment in improvements/upgrades(bil. Yen)

5-Year Plan

FY2017
Results

FY2018Results

FY2019Results

FY2020
Plan

CapitalInvestment

150.0

36.3

52.0

57.6

49.2

◼ FY2020 Plan

◼ FY2019 Results- NISSIN FOOD PRODUCTS: Kansai
Plant Phase III- NISSIN FOOD PRODUCTS:
Kansai Plant Phase I andPhase II- NISSIN FOOD PRODUCTS: Ingredientsplant- BonChi: New Yamagata Plant- NISSIN FOOD PRODUCTS: Frozen
foods Shizuoka plant- Overseas : Production line enhancement
through production increase

Depreciation and Amortization◼

FY2019 Reasons for YoY
increase◼

- NISSIN FOOD PRODUCTS:
Operation of Kansai Plant Phase I- BonChi: New Yamagata Plant

FY2020 Reasons for YoY increase- Increase depreciation due toimpacts of application of IFRS 16(+3.2)- NISSIN FOOD PRODUCTS:
Operation of Kansai Plant Phase I,
II and III- NISSIN FOOD PRODUCTS:
Ingredients plant

Cash Flow- NISSIN FOOD PRODUCTS: Chilled
and frozen foods Shizuoka plant

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

FY2017
Results

FY2018Results

FY2019Results

FY2020Plan

J-GAAP

15.4

17.9

-

-

IFRS

-

17.8

20.3

26.3

Shareholder Returns
Expected dividend payment: 11.4 bil. yen
Dividend per share (plan): 110 yen(1H: 55 yen, Year-end: 55 yen)

CF provided by operating activities
Approx. 48.0 bil. yen(bil. Yen)

Cash Flow

Budget for investment
Capital investment: 49.2 bil. yen
Business investment: Depends on deals

20

Investment Plan, and Financial and Capital Policies (2)Shareholder Returns(Dividends)⚫

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

☝ FY2018 1H: 45 yen, Year-end: 45 yen, Total: 90 yen☝ FY2019 1H: 55 yen (10 yen Increase), Year-end: 55 yen(10 yen Increase), Total 110 yen (20 yen
Increase)☝ FY2020 1H: 55 yen, Year-end: 55 yen, Total 110 yen(Plan)

5-YearPlan

FY2017
Results

FY2018Results

FY2019Results

FY2020
Plan

Dividend per
share

Stabledividend

85 yen90 yen110 yen

110 yenPayout ratio

Average
40% or above

38.4%*1

32.2%*1

59.2%*2

44.1%*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☝ FY2018: Not executed☝ FY2019: Cancelled 10% of the number of shares outstanding (May 24, 2018, 11,763,685 shares).
☝ FY2019: 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 andFY2019☝ In FY2020, the Group will continue to consider the sale of strategic shareholdings in view of the market and businessenvironment. In accordance with internal investment rules, the Board of Directors is consulted over whether to continue to holdthe individual stocks.

21Market Capitalization（bil. yen）

1,000

Market capitalization: Market base

900

866.9

Market capitalization: After deduction of treasury shares
803.3

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

2019/3Essence of the MTBP FY2021(Initial)

23

24

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.

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

25

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

26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

27

Strategic Theme 128

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•29

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•30

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

31

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◼

Average annual
growth rate

39%◼

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

2013

2014

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

Market environment*1 Source: Nielsen 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

2015

2016

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

Still room for growth throughexpansion of sales area
Most popular:
Seafood

2015

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

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

TOP
RAMEN

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)

32

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.

33

Strategic Theme 434

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

35

Developing and Strengthening Human Resources for Global
Management

Strategic Theme 5

36

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

38

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,the year ended March 31, 2018

FY2018(JPY bn)

300

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

250

Acecook
8.0%

200
150
100

Sanyo
15.0%

50

0
NISSIN FOOD
FY2014FY2015FY2016FY2017FY2018FY2019PRODUCTS
Toyo Suisan
43.5%(JPY bn) OP and OPM (Instant Noodles in Japan) (％)
24.8%
NISSIN’s OP in Japan
2 player’s OP in JapanMYOJONISSIN’s OPM in Japan
35
12.0
FOODS
30
10.0
8.0%
25
nd

FY2013

8.0

20
15

Total
24％ 48％NISSIN FOODSGroup Total
51.5％

Note: MYOJO FOODS is a 100% subsidiary of NISSIN FOODS(Source: Nikkei Value Search )2nd player’s OPM in Japan

6.0
4.0

10

2.0

5
0

0.0
FY2014FY2015FY2016FY2017FY2018FY2019(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: 5.78 billion, Annual consumption in Japan : 45.7 servings/person(Population of Japan: 126.5 mil Source: WINA (January 2018 - December 2018) ,IMF(population)

39Power of NISSIN’s Brands in JapanNISSIN is ranked No. 3 in Japan Brand Recognition Ranking
Consumer Market (B to C), appraised by general consumers in 2019

Brand ranking
1

Amazon2

YouTube3

NISSIN

4

MUJI

5

Google6

TOYOTA

7

NITORI

8

DAISO

9

SUNTORY

10

RakutenSource: Brand Japan,
NIKKEI BP Consulting

2010: 11th
2011: 5th
2012: 8th
2013: 9th
2014: 17th
2015: 3rd
2016: 25th
2017: 6th
2018:7th
2019:3rd
2010: 30th
2011: 27th
2012: 14th
2013: 15th
2014: 21st
2015: 24th
2016: 7th
2017: 5th
2018:52th
2019:22nd
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 FY2019(April 2018 - March 2019)

Corporate
1

KDDI

2

SoftBank

3

NTT docomo

4

Coca –Cola

5

Kao

6

NISSIN FOODS

7

P&G

8

Recruit9

Hazuki Company

10

Kirin

Source: CM Soken Consulting

40

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

41

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

42Core Brands of NISSIN FOOD PRODUCTSCHICKEN RAMEN, CUP NOODLE and DONBEI achievedRecord-high revenue for FY2019.

Since 1958

Since 1971

Since 1976

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

.

43.3
39.3
36.9

40.0
30.0

43

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

24.5

20.0 .

4.9 6.1 9.4

10.0

14.6

37.0

0.0
2010 2011 2012 2013 2014 2015 2016 2017 2018
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

45

Global Demand Trend of Instant Noodles
Unit: Billion servings
120.0

Worldwide: Approx. 103.6 bil. servings
98.2 101.8

100.0

106.0104.0

97.5 97.5 100.1 103.6

92.1 94.7 91.3 92.2 95.9
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(Source: World Instant Noodles Association) (Jan.- Dec.)
Figures up to CY2013 might not be exactly correct since WINA restates and endorses only past five years including the latest year.

46

Cup Composition Rates and GDP/Capita
U.K.

RussiaMainland China

H.K.

Worldwide Average

Cup-type
22%

16%
47%

26%

27%

53%
73%

US$ 42,558

US$ 11,327

Bag-type

74%

84%

US$ 9,608

US$ 48,514

78%

Korea

GDP/capita -

34％

33%

U.S.A.

67%
34%

India

US$ 31,346

66%

Mexico1%

US$ 62,606
4%

Japan

99%

96%

US$ 2,03631%

US$ 9,807

69%

US$ 39,306

Thailand
Vietnam
15%

Singapore

Indonesia

85%

15%
95%

US$ 2,551

3%

11%

5%

US$ 7,187

BrazilPhilippines

85%

US$ 64,038

7%
93%

89%

US$ 3,871

US$ 3,104

97%

US$ 8,968(Volume Base, Source: World Instant Noodles Association in CY2018) (Jan.- Dec.)

47

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

48

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)

49

Overseas Expansion(wholly-owned/equity-method/investing)
As of April 1, 2019

The Americas
The U.S.
MexicoChina

BrazilHong Kong
Main Land China

EMEA
EuropeAsia

Russia(equity-method)

Singapore
India
Thailand
Viet Nam
Philippines(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

50⚫ 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 2017
Super Noodle in Pots is one of the first successes of NISSIN’s collaboration with Premier Foods.
They are available in the classic Super Noodles flavors - Chicken, Curry, Bacon and BBQ Beef.

Outline of Premier Foods
Name:

Premier Foods plc

Location:

Hertfordshire, UK

Business:

Production and distribution of processed foods, cooking source and confectionary

51

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)(Forecast)

IFRS

IFRS

March
2021
(Mid-termPlan)IFRSSales/
Revenue

48.3

60.4

64.5

62.5

63.4

64.0

67.5

OP/OI

1.1

2.3

2.0

2.4

-5.2

27

3.7

Sales/
Revenue

40.9

36.0

42.6

40.1

41.4

44.5

47.0

OP/OI

4.1

3.4

3.6

4.1

3.8

3.8

4.7

Sales/
Revenue

7.2

9.0

9.4

9.2

11.4

11.7

13.0

OP/OI

(2.0)

(1.4)

(1.4)

(0.4)

1.8

2.5

2.7

Sales/
Revenue

4.6

4.6

5.9

5.9

6.8

7.0

7.5

OP/OI

(0.4)

0.0

(0.5)

0.2

0.6

1.0

1.3

FiscalYear

The
Americas

China(incl. H.K.)

Asia

EMEA

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
sales grow thanks to thechange of retail industry✓ Under the transition
period from stable profit
base to expansion ofsales and profit

In light of changes in the business environment and the issues of each region/business, we have revised segment targets for March 2021.

52

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

Financial Performances of NFB*1

Instant Noodles Market Transition(Million Brazilian Real)

FY

Sales

Dec.
2014
(J-GAAP)

Approx.
700.0

March
2019
(IFRS)

Approx.
×1.2*1: NFB =NISSIN FOODS DO BRASIL LTDA.

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

Billion serving(bar chart)
2.5

Note: Up until FY2015, fiscal years of NFB had been from Jan. to Dec.
From FY2016, its fiscal term has been changed to “from April to March”

14.0
12.0

2

10.0
1.5
1
0.5

The operating income margin is expected to be
above 9% in the fiscal year ended March 2020.
We target to achieve 10% for the medium term.

Serving per capita(line chart)0

8.0

Market size:
2.37 bil.

11.4 servings
per capita

6.0
4.0
2.0
0.0

53

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

Cup/Bag instant noodle composition (unit base）

Worldwide average

Brazil market◼ BRAZIL NISSIN

CY2016
Cup type◼ Others

28%

3%

21%

62%

Cup type

Bag type 79%

Overwhelming share

CY202010%Growth potential
Bag type
97%

Source: NISSIN CY2018[ Average of world market CY2016 ]Source: NISSIN

US$9,895

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

Economy seemed to hit the bottom
Contributed by CUP NOODLES sales expansion

New CUP NOODLES was launched in Sept. 2016

BRAZIL NISSIN
Sales (BRL)

Approx.
+40％• 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 by leveraging social media
Gain a good response and confidence mainlyin cities in southeast and south areas

Capabilities in technology andproduct development

Enhance marketing

14/3

15/3

16/3

17/3

18/3

19/3

54

China: Overview of Business
100 million
servings

1.4 bil. people
Large population

40.3 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

389.6

402.5

CY2014 CY2015 CY2016 CY2017 CY2018

Source: WINA/2018

Large demand（Instant noodles）

385.2

Source: WINA/2018

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.

55

China: Production Capacity Enhancement and Sales Offices⚫ 35 sales offices and 6 admin. offices in distributor’s offices
as of March 2019

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）
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）
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

56

India: Overview of Business1.3 bil.
peopleLarge population

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

70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

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

Population concentration in metropolitans

Instant noodle market size
(unit base）
Industry-wide
voluntary recall

Recovery from industry-wide voluntary recall

Expected growth rate: more than 10%
Source: WINA/2018

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

10INR

20INR

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

Cup Noodles with Japanese quality
launched• Introduction of “SEAFOOD”, which is a
global flavor, in October 2017

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

40INR• An increase in brand recognition and repeat
customers

Seafood

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. 201757

Developing and Strengthening Human Resources for Global Management

58◼ “Future Leader Session (FLS)” course (July 12 – 14, 2017)• Hold selective training in Japan for the purpose of cultivating global managers, for 8 executives at overseas companies.

◼ 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 2018” (July 10-11, 2018)• Seven overseas employees 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.30-Sep.1, 2018)• 21 new management-level employees of Group companies in Japan, and 5 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

60Management 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 will be effective upon approval at the Ordinary
General Meeting of Shareholders to be held on 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

61

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, andthe measures were abolished 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 committee makes a report and submits to the Boards of Directors once a year.
Board of Directors

Structure of Risk Management(revised on April 4, 2018)

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
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 5.8 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.

63

64

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

65

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.

◼ China
Mainland China

Hong Kong◼ AsiaFrozen Noodles, Rice and Snack◼ NISSIN CISCO CO., LTD.
Confectionery

Brazil

R&D center

Cereal◼ BonChi CO., LTD.

Singapore

India

Thailand

VietnamIndonesia

Rice cracker
Note: Equity interest held by NISSIN in is 51%◼ EMEA◼ NISSIN YORK CO., LTD.
Health foods & Lactobacillus Drinks

7 operating companies•••

Innovation
Product Development
Technology
Food Safety

Europe4 operating areas

66
66

Structured Above the Holding Company（Platform Management）
As of March 31, 2019
EuropeNISSIN

Singapore NISSIN
66％

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

MAREVEN Food*
Russia/Ukraine

56％

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.

67

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

6,500
6,000
5,500

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

1976

5,000
4,500

1992

1971

4,000

Cup-type market
gained momentum
by our products

3,500

Cup type
market size in volume

3,000
2,500
2,000

1,500
1,000

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

500

（Source）JCFIA=Japan Convenience Foods Industry Association （http://www.instantramen.or.jp ）68

Domestic Market Share of Instant Noodles
Market Share (Bag + Cup)FY2019FY2017

Cup-type
NISSIN FOODSGroup Total
51.5％

Acecook
8.0%
Sanyo
15.0%

NISSIN FOOD
PRODUCTS
43.5%

VolumeAmountNISSIN

44% (1st)

47%(1st)

MYOJO

6% (4th)6% (4th)Others50%

47%

Bag-type

NISSIN has No.1 market share

Toyo Suisan
24.8%
MYOJO
FOODS
8.0%

NISSIN has No.1 market share

VolumeAmountNISSIN

24% (1st)

24% (1st)

MYOJO

6% (4th)6% (4th)Others70%

70%

Sales base,the year ended March 31, 2018
(Source: Nikkei Value Serach )(Source: NISSIN, From April 2018 to March 2019)

69

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

In Descending Order
Rank

Country

America,
5.5

Total: 103.6 bn

Categorized by Four Areas

Jan. 2018- Dec. 2018

Volume(bil. serving)

Per capita(serving)

Per capita
(GDP)

1

China
H.K.

40.3

28.7

China: 9,608
H.K: 48,514

2

Indonesia

12.5

47.5

3,871

3

India

6.1

4.5

2,036

4

Japan

5.8

45.7

39,306

5

Vietnam

5.2

55.0

2,551

6

U.S.A.

4.4

13.4

62,606

7

Philippines

4.0

37.3

3,104

8

Korea

3.8

73.9

31,346

9

Thailand

3.5

51.0

7,187

10

Brazil

2.4

11.4

8,968

11

Russia1.9

12.9

11,327

12

Nigeria

1.8

9.4

2,049

13

Nepal

1.6

53.0

972

14

Malaysia

1.4

42.4

10,94215

Mexico

1.2

9.5

9,807

Russia, 1.9

Nigeria, 1.8

Others, 1.1

Brazil, 2.4
U.S.A., 4.4

EMEA
5.9

Americas
8.6
Japan
5.8

Malaysia, 1.4
Nepal, 1.6
Thailand, 3.5
Korea, 3.8

China
Inc.HK,
40.2

Asia,
41.5

Philippines, 4.0

Vietnam, 5.2
Japan, 5.8
India, 6.1

Indonesia, 12.5

(Source: World Instant Noodles Association in CY2018) (Jan.- Dec.)

70

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
Nestle

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 CY2018(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

71

71

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

72

Investor Information of NISSIN FOODS HOLDINGS
Information

Principal Shareholders

As of September 30, 2018

As of September 30, 2018＃of Shares
Held(Hundred)% of Total
SharesOutstanding

NISSIN FOODS HOLDINGS CO.,LTD.

Ando Foundation

79,043

7.59

Mitsubishi Corp.

78,000

7.49

Date of Establishment

September 1948

ITOCHU Corp.

54,0005.19# of Employee

12,525 on a consolidated basis

Ando International Y.K.

39,455

3.79

Common Stock

Authorized: 500,000,000 shares
Issued: 105,700,000
Number of shareholders: 51,441

The Master Trust Bank ofJapan, Ltd. (Account in Trust)

38,0033.65

Mizuho Bank, Ltd.

33,750

3.24

Paid-in Capital

JPY 25,122 million

29,785

2.86

Stock Listings

Tokyo Stock Exchange
1st section (Ticker Code: 2897)

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

22,735

2.18

Independent Auditors

Deloitte Touche Tohmatsu LLC

The Bank of Tokyo-Mitsubishi
UFJ, Ltd.
JPMorgan Chase Bank

20,432

1.96

Transfer Agent

Mizuho Trust & Banking Co., Ltd.

STATE STREET BANK WEST
CLIENT - TREATY

18,091

1.74

NameDistribution of ownership among shareholders
As of September 30, 2018

Financial
Institutions
28.48

Other
Corporations
36.99

Treasury
Stock Individual
1.46 and others
14.01

Foreign
Corporation
19.06

73

73

Note: The fiscal terms on this material indicate as follows:
FY2016: from April 1, 2015 to March 31, 2016
FY2017: from April 1, 2016 to March 31, 2017
FY2018: from April 1, 2017 to March 31, 2018
FY2019: from April 1, 2018 to March 31, 2019
FY2020: from April 1, 2019 to March 31, 2020

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
20190521ver.