Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023
(Japanese GAAP)
November 13, 2023
Company name: Nishimoto Co., Ltd.
Listed exchange: Tokyo
Code:
9260
URL: http://www.wismettac.com/
Representative:
Yoshiro Susaki, Chairman & CEO
Contact:
Yuji Sasa, President, Director, Executive Officer, COO, CFO(Phone) 03-6870-2015
Scheduled date of filing of quarterly report:
November 14, 2023
Scheduled date of commencement of dividend payments:—
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:No(Amounts are rounded down to the nearest million yen)

1.

Consolidated financial results for the third quarter of the fiscal year ending December 31, 2023
(from January 1, 2023 to September 30, 2023)(1) Consolidated results of operations (cumulative)
Net sales
Million yen(Percentages denote year-on-year changes)
Profit attributable toOrdinary income
owners of parent

Operating income%

Million yen%

Million yen

Third quarter of FY ending
223,598
8,811
5.9
10.5
December 31, 2023
Third quarter of FY ended
202,316
8,317
64.9
30.2
December 31, 2022
(Note) Comprehensive income
Third quarter of FY ending December 31, 2023: 15,465 million yen (16.9%)
Third quarter of FY ended December 31, 2022: 18,621 million yen (180.1%)
Diluted net income
Net income per shareper share
Third quarter of FY ending
December 31, 2023
Third quarter of FY ended
December 31, 2022

Yen

Yen

466.32462.65395.70394.09%Million yen

%

9,941

14.6

6,693

17.8

8,672

74.7

5,679

75.6

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of September 30, 2023
209,470(FY 2023 3Q)
As of December 31, 2022
179,222(FY 2022)(Reference)
Shareholders' equity
Third quarter of FY ending December 31, 2023:
FY ended December 31, 2022:2.

Equity ratio

Million yen%

84,39740.3

72,06339.9

84,376 million yen
71,559 million yen

Dividends
Annual dividends
First quarter-end

FY ended December 31, 2022
FY ending December 31, 2023
FY ending December 31, 2023
(Forecast)(Note)

Secondquarter-end

Third quarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

—
—

70.00
80.00

—
—

75.00

145.0080.00

160.00

Revision to the forecast for dividends announced most recently: None

3.

Consolidated financial results forecast for the fiscal year ending December 31, 2023
(from January 1, 2023 to December 31, 2023)
Net sales
FY ending
December 31, 2023

(Note)

Operating income(Percentages denote year-on-year changes)
Profit attributable to Net income per
Ordinary income
owners of parent
shareMillion yen%

Million yen%

Million yen%

Million yen%

Yen

304,000

10.5

12,00014.3

13,500

25.1

7,500

10.0

522.54

Revision to the forecast for financial results announced most recently: Yes* Notes(1) Changes in significant subsidiaries during the first nine months of the fiscal year:(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
New 1 company(Company name) Wismettac EMEA Holdings Limited
Excluded — companies(Note)Yes(Company name) —For details, please see the section titled "(3) Notes to the quarterly consolidated financial statements (Changes in significant subsidiaries
during the first nine months of the fiscal year)" under the chapter titled "2. Quarterly consolidated financial statements and major notes" on
the page 9 of the attachment.

(2) Application of accounting treatment specific to the preparation of quarterly consolidated
financial statements:(3) Changes in accounting policies, changes to accounting estimates, and restatements(i)
Changes in accounting policies due to revisions of accounting standards:

Yes

Yes

(ii)

Changes in accounting policies other than (i) above:

None

(iii)

Changes in accounting estimates:

None

(iv)

Restatements:

None(4) Number of shares outstanding (common stock)(i)
Number of shares outstanding at the end As of September
December 31,
14,353,140 shares
14,353,140 shares30, 2023
2022
of the period (including treasury shares)(ii)
Number of treasury shares at the end of
As of September
December 31,
241 shares
220 shares
2022
30, 2023
the period(iii) Average number of shares during the
As of September
September 30, 14,352,960 shares
14,352,911 sharesperiod (nine months ended September 30,
30, 2023
2022
2023)* These quarterly financial results are not subject to quarterly review procedures.
* Explanation of the proper use of financial results forecasts and other notes(Cautionary note on forward-looking statements, etc.)
The forward-looking statements such as financial results forecasts contained in this document are based on information currently
available to the Company and certain reasonable assumptions. Thus, these statements are not intended for management to promise
the achievement of the forecast. Actual financial results may differ materially due to various factors. For conditions of theassumptions in the forecast and notes to use of the forecast, please see the section titled "(3) Explanation of future forecasts such as
consolidated financial results forecasts" under the chapter titled "1. Qualitative information on quarterly financial results" on thepage 4 of the attachment.
(How to obtain the quarterly financial results supplementary materials)
The quarterly financial results supplementary materials will be disclosed on TDnet on November 13, 2023 and will also be postedon the Company's website.

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

 Attachment: Table of Contents

1. Qualitative information on quarterly financial results.............................................................................................. 2(1) Explanation of operating results ........................................................................................................................ 2(2) Explanation of financial position ....................................................................................................................... 3(3) Explanation of future forecasts such as consolidated financial results forecasts................................................ 4
2. Quarterly consolidated financial statements and major notes .................................................................................. 5(1) Quarterly consolidated balance sheet ................................................................................................................. 5(2) Quarterly consolidated statements of income and comprehensive income ........................................................ 7(3) Notes to the quarterly consolidated financial statements ................................................................................... 9(Notes to assumption of going concern) ............................................................................................................ 9(Notes on significant changes in shareholders' equity) ...................................................................................... 9(Application of an accounting treatment specific to the preparation of quarterly consolidated financial
statements) ......................................................................................................................................................... 9(Changes in accounting policy) ......................................................................................................................... 9(Changes in significant subsidiaries during the first nine months of the fiscal year) ......................................... 9(Additional information) .................................................................................................................................... 9(Segment information) ..................................................................................................................................... 10(Significant subsequent events) ....................................................................................................................... 11– 1 –Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

1. Qualitative information on quarterly financial results(1) Explanation of operating results
Forward-looking statements in the document are based on the judgment of the Company Group as of the end of the third
quarter of the current consolidated fiscal year.
[Outline of the third quarter of the current consolidated fiscal year]
During the first nine months of the current fiscal year, the global economy faced downward pressure due to factors such as
prolonged inflation and the subsequent monetary tightening that occurred in response, the prolonged conflict in Ukraine, andthe slowdown in China's economic recovery. The future outlook for the global economy remains uncertain due to these factors.
Under these circumstances, our Company Group, as a global food-related company, has been striving to deliver products safely
and stably while responding to various changing business environments. The main businesses of the Company Group are the
Asian Food Global Business, which sells Japanese and other Asian foods and food ingredients mainly in North America, butalso in Europe, China, Southeast Asia, Australia, etc., and the Agricultural & Seafood Products Trading Business, which
engages in domestic sales of fruits and vegetables, as well as export and trilateral trade. We are also engaged in the business ofselling overseas branded food products, seasonal products planned and developed in-house, and character products to imported
food stores and general merchandise stores in Japan, as well as the business of manufacturing and selling natural supplements.
In addition, we aim to become a company that identifies and provides solutions to various issues facing the food industry, bydeveloping businesses in new areas where ‘food' and ‘healthcare' converge, and providing solutions using digital technology
for companies involved in the food industry.
In the Asian Food Global Business, we have aggressively pursued structural reforms to achieve sustainable and stable earnings
in our core region of North America and to expand our operating base outside North America, which is one of our growthstrategies. In the Agricultural & Seafood Products Trading Business, the Company Group has been working to expand sales to
its mainstay wholesale markets, mass retailers, home-meal replacement industries, and restaurant chains, etc., while also
developing overseas distribution routes, including export of domestic fruits and vegetables, offshore trading, and the wholesale
business in China.
As a result, with respect to the financial results for the third quarter of the current consolidated fiscal year, net sales stood at
223,598 million yen (10.5% increase year-on-year), operating income amounted to 8,811 million yen (5.9% increase year-onyear), ordinary income amounted to 9,941 million yen (14.6% increase year-on-year), and profit attributable to owners ofparent totaled 6,693 million yen (17.8% increase year-on-year).
Financial results by segment are as follows: It is noted that net sales of segments are net sales to external customers.
[Outline of operating results by segment](i) Asian Food Global BusinessIn the Asian Food Global Business, for the third quarter of the current consolidated fiscal year, the Company had net salesof 174,589 million yen (10.6% increase year-on-year) and operating income of 10,634 million yen (10.1% increase yearon-year).
In the North America region, net sales increased from the same period of the previous year both in the restaurant andgrocery markets with robust sales. The expansion of sales to major grocery chains, the promotion of switching fromnational brands to private labels, and sales activities focused on market share retention have been successful.
In terms of profits, the Company endeavored to maintain the profit margin through appropriate price pass-through and othermeasures, but the profit margin declined from the same period of the previous year due to adjustments in wage levels tosecure human resources, increases in expenses resulting from widespread price increases, etc.
As for regions other than North America, net sales in the European region, mainly to restaurant chains, increased from thesame period of the previous year despite sluggish consumer spending caused by ongoing inflation and interest rate hikes.
As described in "2. Quarterly consolidated financial statements and major notes (3) Notes to quarterly consolidated
financial statements (Significant Subsequent Events)," the Company acquired all shares of Italy-based Uniontrade S.p.A.
and all interests in Italy-based Uni Logistic S.r.l. on October 31, 2023, and made them consolidated subsidiaries. In Asiaand Oceania, although there was a slowdown in economic growth due to ongoing inflation, etc. similar to Europe and theUS, net sales increased from the same period of the previous year due to appropriate price pass-on as well as strong sales
to restaurant chains.

– 2 –Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023(ii) Agricultural & Seafood Products Trading BusinessIn the Agricultural & Seafood Products Trading Business, for the third quarter of the current consolidated fiscal year, theCompany had net sales of 46,278 million yen (10.0% increase year-on-year) and operating losses of 430 million yen(operating losses of 643 million yen in the same period of the previous year).
Net sales increased from the same period of the previous year mainly due to relatively steady shipment for both imported
fruits and vegetables and frozen processed food.
Although the Company took measures that included lowering the selling prices of imported fruits and vegetables inaccordance with the sales policy that prioritizes volume, profits increased from the same period of the previous year due toefforts to pass on the higher costs to the selling prices of imported fruits and vegetables and frozen processed food.
(iii) Other businesses
In other businesses, for the third quarter of the current consolidated fiscal year, the Company had net sales of 2,730
million yen (11.0% increase year-on-year) and operating losses of 217 million yen (operating losses of 227 million yen in
the same period of the previous year).
In the mainstay imported food business, net sales and profits increased steadily in the first quarter due to the success of the
Valentine's Day event, which was the biggest sales event. From the second quarter onward, daily imported brand products
performed well despite the impact of the weak yen and inflation. Sales of dietary supplements grew steadily, mainly throughthe core medical channel and EC. We also developed new businesses, such as the provision of food for people recoveringfrom surgery or illness, which incurred start-up costs. However, the other businesses as a whole achieved growth in bothsales and profits.

(2) Explanation of financial position(Assets)
Total assets as of September 30, 2023 stood at 209,470 million yen, an increase of 30,248 million yen compared to
December 31, 2022, and was mainly attributable to the following.
Total current assets as of September 30, 2023, amounted to 177,709 million yen, an increase of 26,678 million yen
compared to December 31, 2022. This increase in total current assets was due to an increase of 21,337 million yen in cash
and deposits and an increase of 2,753 million yen in inventories.
Total non-current assets as of September 30, 2023, amounted to 31,761 million yen, an increase of 3,569 million yen
compared to December 31, 2022. This increase in total non-current assets was due to a net increase of 1,660 million yen inleased assets, a net increase of 923 million yen in other assets, which includes construction in progress, and an increase of
502 million yen in software.
(Liabilities)
Total liabilities as of September 30, 2023 stood at 125,073 million yen, an increase of 17,914 million yen compared to
December 31, 2022, and was mainly attributable to the following.
Total current liabilities as of September 30, 2023 amounted to 39,449 million yen, an increase of 5,835 million yen
compared to December 31, 2022. This increase in total current liabilities was due to an increase of 3,154 million yen innotes and accounts payable—trade and an increase of 2,919 million yen in the current portion of long-term loans payable,
which occurred despite a decrease of 982 million yen in short-term loans payable.
Total non-current liabilities as of September 30, 2023 amounted to 85,624 million yen, an increase of 12,078 million yen
compared to December 31, 2022. This increase in total non-current liabilities was due to an increase of 9,995 million yen
in long-term loans payable and an increase of 1,605 million yen in lease obligations.
(Net assets)
Total net assets as of September 30, 2023 amounted to 84,397 million yen, an increase of 12,333 million yen compared to
December 31, 2022. The increase in total net assets was mainly due to an increase of 8,660 million yen in foreign currencytranslation adjustment and an increase of 4,468 million yen in retained earnings.

– 3 –Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

(3) Explanation of future forecasts such as consolidated financial results forecasts
We have revised the annual consolidated earnings forecast that was announced on August 10, 2023, in view of the ordinary
profit for the first nine months of the current fiscal year, current conditions, etc. as outlined below:(Millions of yen)
Net sales

Operating income

Ordinary income

Profit attributableto owners ofparent

Net income per
share

Previous Forecast (A)(Announced on August 10, 2023)

304,000

12,00012,5007,500

522.54

Revised Forecast (B)304,000

12,00013,5007,500

522.54

Difference in Amount(B  A)

0

0

1,000

0

–

Difference in Percentage (%)

0.0

0.0

8.0

0.0

–

– 4 –

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
FY 2022(As of December 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Inventories
Other
Allowance for doubtful accounts
Total current assets(Millions of yen)
Third quarter of FY 2023
(As of September 30, 2023)

75,78729,31742,584
3,765(423)

97,12531,74245,3383,986(483)

151,030

177,709

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Leased assets, net
Other, net

75,787
2,839
462
325
11,198
252

2,774
482
351
12,8591,175

Total property, plant and equipment

15,07917,643

Intangible assets
Goodwill
Software
Software in progress
Customer-related assets
Other

4,546
326
1,221
4,754
51

4,654
828
1,168
4,910
46

Total intangible assets

10,89911,610Investments and other assets
Investment securities
Guarantee deposits
Deferred tax assets
Other

392
967
703
149

587
985
794
139

2,213

2,507

Total investments and other assets
Total non-current assets
Total assets– 5 –28,191

31,761

179,222

209,470

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

FY 2022(As of December 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable—other
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for share-based remuneration
Provision for shareholders' benefits
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for bonuses
Provision for share-based remuneration
Net defined benefit liability
Other
Total non-current liabilities(Millions of yen)
Third quarter of FY 2023
(As of September 30, 2023)

15,171
6,528
448
2,479
3,518
213
1,427
142
23
3,660

18,325
5,545
3,368
2,624
3,439
384
1,226
122
261
3
4,146

33,61339,44960,573
9,250
1,197
86
455
129
1,853

70,56910,855
1,331
4
696
103
2,063

73,54585,624

Total liabilities

107,158

125,073

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

2,646
6,531
52,435
(0)

2,646
6,145
56,903(1)

61,612

65,694

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

15
(43)
9,975

27
18
18,635

Total accumulated other comprehensive income

9,947

18,681

Total shareholders' equity

Non-controlling interests
Total net assets
Total liabilities and net assets

– 6 –

504

20

72,06384,397179,222

209,470

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
First nine months ended September 30, 2023
(Millions of yen)First nine months of FY 2023
(January 1, 2023
to September 30, 2023)
223,598
177,575

Net sales
Cost of sales

First nine months of FY 2022
(January 1, 2022
to September 30, 2022)
202,316
161,659

Gross profit

40,65646,022

Selling, general and administrative expenses

32,33937,210Operating income

8,317

8,811

185

1,390

74

45

0
429
5
104

0
350
6
90

799

1,883

438
5

743
9

Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodInsurance benefits received
Foreign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses

444

753

8,672

9,941

-

-

Business restructuring expenses-

107

Total extraordinary losses-

107

Profit before income taxes

8,672

9,833

Income taxes—current
Income taxes—deferred

2,820
159

3,143
(13)

Total income taxes

2,979

3,130

Net income

5,693

6,702

Ordinary income
Extraordinary income
Total extraordinary income
Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

– 7 –

13

9

5,679

6,693

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

Quarterly consolidated statement of comprehensive income
First nine months ended September 30, 2023

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method

First nine months of FY 2022
(January 1, 2022
to September 30, 2022)
5,693(Millions of yen)First nine months of FY 2023
(January 1, 2023
to September 30, 2023)
6,702

(0)
16
12,863

12
61
8,658

48

30

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests– 8 –12,928

8,762

18,621

15,465

18,56815,42753

38

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

(3) Notes to the quarterly consolidated financial statements(Notes to assumption of going concern)
No relevant items.
(Notes on significant changes in shareholders' equity)
No relevant items.
(Application of an accounting treatment specific to the preparation of quarterly consolidated financial statements)
Calculation of tax expenses
The tax expenses of some of non-Japan consolidated subsidiaries were calculated by multiplying net income before taxes by aneffective tax rate, which was estimated as the rate after the application of tax effect accounting to net income before taxes forthe fiscal year including the third quarter of the fiscal year.
(Changes in accounting policy)(Application of International Accounting Standard IAS 12—Income taxes)
With effect from the beginning of the first quarter of the current consolidated fiscal year, the Company Group's foreign
consolidated subsidiaries that apply International Financial Reporting Standards have adopted International AccountingStandard IAS 12—Income Taxes (as revised in May 2021; hereafter referred to as "the standard" in this section). Accordingly,
deferred tax assets relating to leased and abandoned assets are recognized.
The change in accounting policy has been applied retrospectively, and the quarterly consolidated financial statements andconsolidated financial statements for the previous fiscal year have been retrospectively applied, and the cumulative effect has
been reflected in net assets at the beginning of the previous consolidated fiscal year.
The application of the standard did not have a material impact on the quarterly consolidated financial statements.
(Application of US GAAP ASU No. 2016-13 Financial Instruments—Credit Losses)
With effect from the beginning of the first quarter of the current consolidated fiscal year, the Company Group's foreign
consolidated subsidiaries that apply US GAAP have adopted ASU No. 2016-13, Financial Instruments—Credit Losses(hereafter referred to as "the standard" in this section). Accordingly, impairment losses on financial assets are recognized basedon the expected credit loss model.
In applying this standard, the cumulative effect of adopting this standard, which is permitted as a transitional measure, isrecognized at the date of adoption and the effect is added to or deducted from retained earnings at the beginning of the firstquarter of the current fiscal year.
The application of the standard did not have a material impact on the quarterly consolidated financial statements.
(Changes in significant subsidiaries during the first nine months of the fiscal year)
Wismettac EMEA Holdings Limited is included in the scope of consolidation from the first quarter of the current fiscal year,
because it has become a consolidated subsidiary due to its incorporation.
(Additional information)(Accounting estimate associated with the novel coronavirus pandemic)
There have been no significant changes in the assumptions regarding the impact of the COVID-19 pandemic, which were
described under Additional information—Accounting estimate associated with the novel coronavirus pandemic in theConsolidated Financial Results for the Fiscal Year Ended December 31, 2022.

– 9 –Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

(Segment information)
I. First nine months of the fiscal year (from January 1, 2022 to September 30, 2022)
1.

Information related to net sales and profits/losses by reporting segment and decomposition of income(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products Other business
Global BusinessTrading BusinessNet sales
Japan
North America
EuropeOther
Revenue from contracts withcustomers
Sales to external customers
Intersegment sales or transfers
Total
Segment profit or loss

Total

Adjustment(Note 1)

5,935
114,048
29,296
8,515
157,795

34,077––
7,983
42,060

2,460
–
–
–
2,460

42,473
114,048
29,296
16,498202,316––––

157,795
5,381
163,176
9,662

42,060042,060
(643)

2,460
–
2,460
(227)

202,316
5,381
207,697
8,791–(5,381)(5,381)(473)–

Amounts recordedin the quarterly
consolidated
statement of income(Note 2)42,473
114,048
29,296
16,498202,316
202,316–
202,316
8,317(Note) 1. "Adjustment" for segment profit or loss in the amount of (473) million yen includes 0 million yen for elimination ofintersegment transactions and (474) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of management guidance fees from
reporting segments, and company expenses mainly comprise general and administrative expenses not attributed toreporting segments.
2. The segment profit or loss is reconciled with the operating income on the Quarterly Consolidated Statement of Income.
2.

Information related to impairment loss of non-current assets and goodwill by reporting segment(Material fluctuation in goodwill)In the Agricultural & Seafood Products Trading Business segment, the Company acquired 100% of shares of Ban Choon
Marketing Pte. Ltd., making it a consolidated subsidiary. This increase in goodwill attributable to this event was 1,621 million
yen in the third quarter of the previous consolidated fiscal year. The goodwill is an amount calculated provisionally because theacquisition cost is not fully distributed at the end of the third quarter of the previous consolidated fiscal year.

II. First nine months of the fiscal year (from January 1, 2023 to September 30, 2023)
1.

Information related to net sales and profits/losses by reporting segment and decomposition of income(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products Other business
Global BusinessTrading BusinessNet sales
Japan
North America
EuropeOther
Revenue from contracts withcustomers
Sales to external customers
Intersegment sales or transfers
Total
Segment profit or loss

Total

Adjustment(Note 1)

5,837
124,92234,048
9,779
174,589

37,606––
8,671
46,278

2,730
–
–
–
2,730

46,175
124,92234,04818,451
223,598––––

174,589543
175,132
10,634

46,278–46,281
(430)

2,730
38
2,769
(217)

223,598585
224,183
9,986

–
(585)
(585)
(1,175)–

Amounts recordedin the quarterly
consolidated
statement of income(Note 2)

46,175
124,92234,04818,451
223,598
223,598–
223,598
8,811(Note) 1. "Adjustment" for segment profit or loss in the amount of (1,175) million yen includes 0 million yen for elimination ofintersegment transactions and (1,174) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of management guidance fees from
reporting segments, and company expenses mainly comprise general and administrative expenses not attributed toreporting segments.
2. The segment profit or loss is reconciled with the operating income on the Quarterly Consolidated Statement of Income.

– 10 –

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2023

2.

Information related to impairment loss of non-current assets and goodwill by reporting segment
No relevant items.
(Significant subsequent events)(Business combination through acquisition)
The company acquired 100% of the shares of Uniontrade S.p.A. (head office: Italy; "UT") and 100% of the interests in Uni
Logistic S.r.l. (head office: Italy; "UL") through Wismettac Harro Foods Limited, a consolidated subsidiary of the Company,
and converted the two companies into its subsidiaries.
(1) Outline of the business combination(i)Names of the acquired companies and their business
Name of the acquired company: Uniontrade S.p.A.
Business:

Wholesale business of Japanese and other Asian food products
and operation of cash and carry

Name of the acquired company: Uni Logistic S.r.l.
Business:

Provision of logistics services to UT and its subsidiary Plaza Latina S.r.l.

(ii) Main reasons for the business combination
The Company, as part of its Asian Food Global Business in the European region, conducts the import and wholesale ofJapanese and other Asian food products mainly in the U.K., Germany, and France. The Company has resolved to acquire
100% of the shares of UT, which conducts a wholesale business for Japanese and other Asian food products in Italy, and100% of the shares of UL, which performs certain logistics functions of UT.
UT is one of the leading wholesalers of Japanese and other Asian food products in Italy. Based on its long-standing
business relationships with restaurants and retailers, UT sells food products and ingredients such as seafood, rice, andseasonings, and is also engaged in the cash and carry (purchasing and taking out goods from a warehouse) of commercial
food products for restaurants. The Company plans to leverage the Wismettac Group's product lineup to offer a wider rangeof value-added products to its customers.
One of the growth strategies of the Group's Asian Food Global Business is to expand our business foundation outside ofNorth America. We have been developing the business foundation of our Asian Food Global Business with a focus on
Japanese food in Europe by converting our business bases in major countries such as the U.K., Germany, and France into
group companies, and now we will establish a sales channel in the Italian market through UT.
(iii) Date of the business combination
October 31, 2023 (deemed acquisition date: December 31, 2023)(iv) Legal form of the business combination
Acquisition of shares and interests for cash consideration(v) Company names after the business combination
No changes(vi) Percentage of voting rights acquired
UT: 100%
UL: 100%(vii) Principal basis in determining the companies to be acquired
The Company acquired the shares and interests for cash consideration.
(2) Acquisition cost of the acquired companies and breakdown of consideration by type
Consideration for the acquisition:
Acquisition cost

5,029 million yen in cash
5,029 million yen(3) Amount of goodwill incurred, reason for the incurrence, amortization method, and amortization period
Not determined at this point– 11 –