Consolidated Financial Results for the Fiscal Year Ended December 31, 2018
(Japanese GAAP)
February 14, 2019
Company name:Nishimoto Co., Ltd
Listed exchange:
Tokyo
Code:
9260
URL: http://www.wismettac.com/
Representative:
Takayuki Kanai, President
Contact:
Atsuhiko Kimura, Director and CFO(Phone) 03-6870-2015
Scheduled date of the Annual General Meeting of Shareholders: March 27, 2019
Scheduled date of commencement of dividend payments:
March 13, 2019
Scheduled date of submission of the annual securities report:
March 28, 2019
Preparation of supplementary materials for financial results:
Yes
Holding of financial results presentation meeting:Yes(For institutional investors and analysts)(Amounts are rounded down to the nearest million yen)

1. Consolidated financial results for the fiscal year ended December 31, 2018(from January 1, 2018 to December 31, 2018)(1) Consolidated results of operations
Net sales(Percentages denote year-on-year changes)
Profit attributable toOrdinary income
owners of parent

Operating income

Million yen%

Million yen

FY ended December 31, 2018
182,220
5.9
FY ended December 31, 2017
172,078
8.7(Note) Comprehensive income
FY ended December 31, 2018: 3,596 million yen (45.6%)
FY ended December 31, 2017: 2,470 million yen (33.3%)
Net income per
share

6,719
6,324

%

Million yen%

Million yen%

6.2(13.7)

6,585
5,916

11.3
(14.5)

4,634
3,067

51.1
7.7

Diluted net income
Ordinary income to Operating income
Return on equity
per share
total assets
to net sales

Yen

Yen

%

%

%

FY ended December 31, 2018322.89
–
9.1
7.8
3.7
FY ended December 31, 2017236.37
–
6.9
7.5
3.7
(Reference) Equity in earnings of affiliates
FY ended December 31, 2018: (15) million yen
FY ended December 31, 2017: 28 million yen(Note) The Company conducted a five-for-one common stock split on June 1, 2017. Net income per share was calculated on theassumption that the stock split had been conducted at the beginning of the fiscal year ended December 31, 2017.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%Yen

FY ended December 31, 2018
83,587
51,77061.9
3,606.92
FY ended December 31, 201784,33649,75359.0
3,466.38(Reference) Shareholders’ equity
FY ended December 31, 2018: 51,770 million yen
FY ended December 31, 2017: 49,753 million yen(Note) The Company conducted a five-for-one common stock split on June 1, 2017. Net assets per share was calculated on theassumption that the stock split had been conducted at the beginning of the fiscal year ended December 31, 2017.

(3) Status of consolidated cash flows
Cash flows fromoperating activities
FY ended December 31, 2018
FY ended December 31, 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the end of
the period

Million yen

Million yen

Million yen

Million yen

5,587
1,399

(1,215)(1,488)(6,843)8,598

28,516
31,286

2. Dividends
Annual dividends
First
SecondThird
Year-endquarter-end quarter-end quarter-end
Yen

Yen

Yen

Yen

Total amount
Dividends
Payout ratioof dividends (Consolidated) on net assets

Total(Total)Yen(Consolidated)

Million yen%%

FY ended December 31, 2017
–
0.00
–
70.00
70.00
1,004
32.8
2.3
FY ended December 31, 2018
–
40.00
–
55.00
95.00
1,363
29.4
2.7
FY ending December 31, 2019
–
40.00
–
55.00
95.00
31.4
(Forecast)(Note) 1. The Company conducted a five-for-one common stock split on June 1, 2017.
2. The payout ratio (consolidated) and the ratio of dividends to net assets (consolidated) for the term ended December 2017
are respectively the ratio obtained by dividing the total amount of dividends by that of net income attributable to theowners of the parent company and that obtained by dividing the total amount of dividends by that of net assets.

3. Consolidated financial results forecast for the fiscal year ending December 31, 2019 (from January 1, 2019 to
December 31, 2019)

Net sales
Million yen

First half of FY ending
December 31, 2019
FY ending December 31, 2019

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

Yen

96,028

6.4

2,953

(3.6)

2,982

(3.1)

2,128

(2.5)

148.27

193,000

5.9

6,000

(10.7)

6,052

(8.1)

4,337

(6.4)

302.20* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries
resulting in changes in the scope of consolidation):New– companies(Company name)/

Excluded– companies

None(Company name)(2) Changes in accounting policies, changes to accounting estimates, and restatements(i) Changes in accounting policies due to revisions of accounting standards: None(ii) Changes in accounting policies other than (i) above:None(iii) Changes in accounting estimates:None(iv) Restatements:

None(3) Number of shares outstanding (common stock)(i) Number of shares outstanding at the end of
the period (including treasury shares)(ii) Number of treasury shares at the end of theperiod(iii) Average number of shares during the period

December 31,
2018

14,353,140 shares

December 31,
2017

14,353,140 shares

December 31,
2018

112 shares

December 31,
2017

36 shares

December 31,
2018

14,353,072 shares

December 31,
201712,976,450 shares(Note) The Company conducted a five-for-one common stock split on June 1, 2017. The number of shares outstanding at the end of
the period, the number of treasury shares at the end of the period and the average number of shares during the period were
calculated on the assumption that the stock split had been conducted at the beginning of the fiscal year ended December 31,
2017.

(Reference) Overview of respective financial results

1. Respective financial results for the period ended December 31, 2018 (from January 1, 2018 to December 31,
2018)(1) Respective operating results(Percentages denote year-on-year changes)
Net sales

FY ended December 31, 2018
FY ended December 31, 2017

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen

%

2,910
1,865

56.0
17.9

1,201
200

498.3
31.4

1,173
93

–
(41.5)

1,153
132

768.6
48.9

Net income per share

Diluted net income
per share

Yen

Yen

FY ended December 31, 2018
80.37–
FY ended December 31, 201710.24–
(Note) The Company conducted a five-for-one common stock split on June 1, 2017. Net income per share is calculated on theassumption that the stock split took place at the beginning of the previous business year.

(2) Respective financial position
Total assets
Million yen

Net assets
Million yen

Equity ratio

Net assets per share%Yen

FY ended December 31, 2018
16,685
12,88077.2
897.42
FY ended December 31, 2017
17,071
13,31578.0
927.69(Reference) Shareholders’ equity
FY ended December 31, 2018: 12,880 million yen
FY ended December 31, 2017: 13,315 million yen(Note) The Company conducted a five-for-one common stock split on June 1, 2017. Net asset per share is calculated on theassumption that the stock split took place at the beginning of the previous business year.

* These financial results are not audited by certified public accountants or an audit corporation.
* Explanation of the proper use of financial results forecasts and other notes(Notes on forward-looking statements)
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 the assumptions in the forecast and notes to use of the forecast, please see the section titled "(4) Futureforecasts" under the chapter titled "1. Overview of operating results, etc." on the page 4 of the attachment.

(How to obtain supplementary explanatory materials for the financial results)
On February 14, 2019, supplementary explanatory materials for the financial results will be disclosed via TDnet and posted on
the Company’s website. On February 19, 2019, based on these materials, a meeting will be held to brief institutional investors
and analysts on the financial results.

 Attachment: Table of Contents
1. Overview of operating results, etc. ............................................................................................................................. 2(1) Overview of operating results for the current period .......................................................................................... 2(2) Overview of financial position for the current period ........................................................................................ 3(3) Overview of cash flows for the current period ................................................................................................... 3(4) Future forecasts.................................................................................................................................................. 4
2. Basic approach on selection of accounting standards .............................................................................................. 4
3. Consolidated financial statements and major notes .................................................................................................. 5(1) Consolidated balance sheet ................................................................................................................................ 5(2) Consolidated statements of income and comprehensive income ....................................................................... 7(3) Consolidated Statement of Changes in Equity ................................................................................................... 9(4) Consolidated Statement of Cash Flows............................................................................................................ 11(5) Notes to the consolidated financial statements ................................................................................................ 12(Notes to assumption of going concern) .......................................................................................................... 12(Changes in presentation methods) .................................................................................................................. 12(Segment information) ..................................................................................................................................... 13(Per share information) .................................................................................................................................... 17(Significant subsequent events) ....................................................................................................................... 17-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the current period[Overview of the current consolidated fiscal year]
During the current consolidated fiscal year, the world economy, albeit still moderately recovering on the whole, continued to be
faced with future uncertainty such as unpredictability for the direction for China and other Asian emerging economies andcountries’ policies as well as potential effects of trade issues on the global economy.
Meanwhile, the overall Japanese economy kept on its moderate recovery track as corporate business results and the employment
situation improved.
Under these circumstances, the Company Group worked on improving its operating results by running two main businesses;"Asian Food Global Business" that distributes Asian food products and ingredients such as Japanese food with a focus on North
America, as well as in Europe, China, South East Asia, Australia, etc., and "Agricultural & Seafood Products Trading Business"that distributes fruits and vegetables, fishery products mainly in domestic markets as well as in China and South East Asia.
In the Asian Food Global Business, the Company continued to proactively develop markets deeming growth in North America
and business platform expansion in regions other than North America to be a growth strategy for the Company Group. In the
Agricultural & Seafood Products Trading Business, the Company endeavored to expand its main wholesale market distribution
route as well as other routes (mass retailers, restaurant chains and home-meal replacement industries, etc.) and overseas
distribution routes (export of domestic fruits and vegetables, offshore trade for fruits and vegetables and wholesale business in
China).
As a result, with respect to the financial results for the current consolidated fiscal year, net sales stood at 182,220 million yen(5.9% increase year-on-year), operating income amounted to 6,719 million yen (6.2% increase year-on-year), ordinary income
amounted to 6,585 million yen (11.3% increase year-on-year) and profit attributable to owners of parent totaled 4,634 million
yen (51.1% 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.

[Overview of financial results by segment](i) Asian Food Global BusinessIn regard to financial results of the Asian Food Global Business for the current consolidated fiscal year, net sales stood at
125,112 million yen (5.6% increase year-on-year) and operating income amounted to 5,409 million yen (5.1% decreaseyear-on-year).
Although net sales in the North American region grew steadily, operating income declined as purchase prices of rice andother products climbed during the period while personnel and logistics unit expenses, including gasoline bills, rose
following on from the previous fiscal year. From the fourth quarter under review, profits rebounded as price revisions
progressed, among other things. In this region, we will further bolster our ongoing efforts on restructuring (profitability
improvement and logistics expenses restraint), thereby working to deliver increased profitability.
In regions outside of North America, both net sales and operating income grew as new customer acquisition and sales toexisting customers went on steadily and our business platform expanded.

(ii) Agricultural & Seafood Products Trading BusinessWith respect to financial results of the Agricultural & Seafood Products Trading Business for the current consolidated
fiscal year, net sales stood at 52,886 million yen (6.5% increase year-on-year) and operating income amounted to 1,040
million yen (141.0% increase year-on-year).
Net sales grew thanks to steady sales of avocado and small apples for overseas distribution routes. Net sales and operating
income increased as, on the profit front, citrus and tropical commodities for Japan recovered for the period under review
after having struggled during the previous fiscal year.
(iii) Other businesses
As to financial results of other businesses for the current consolidated fiscal year, net sales stood at 4,221 million yen(5.8% increase year-on-year) and operating income amounted to 262 million yen (50.6% increase year-on-year).
Net sales and operating income grew as sales of seasonal products and character products, etc. for Japan expanded.

-2-

(2) Overview of financial position for the current period(Assets)
Total assets as of December 31, 2018 stood at 83,587 million yen, a decrease of 749 million yen compared to December
31, 2017, and was mainly attributable to the following.
Total current assets as of December 31, 2018 amounted to 75,124 million yen, a decrease of 197 million yen compared to
December 31, 2017. The decrease in current assets is attributed to a decrease of 2,783 million yen in cash and deposits
despite an increase of 2,239 million yen in inventory assets.
Total non-current assets as of December 31, 2018 came to 8,462 million yen, a decrease of 551 million yen compared to
December 31, 2017. The decrease in fixed assets is attributed to a decrease of 597 million yen in buildings and structures
and a decrease of 359 million yen in customer-related assets.
(Liabilities)
Total liabilities as of December 31, 2018 stood at 31,817 million yen, a decrease of 2,766 million yen compared to
December 31, 2017, and was mainly attributable to the following.
Total current liabilities as of December 31, 2018 amounted to 20,176 million yen, an increase of 527 million yen
compared to December 31, 2017. The increase in current liabilities is attributed to an increase of 1,581 million yen innotes payable and accounts payable, and an increase of 505 million yen in income taxes payable despite a decrease of
2,295 million yen in short-term loans payable.
Total fixed liabilities as of December 31, 2018 amounted to 11,641 million yen, a decrease of 3,293 million yen compared
to December 31, 2017. The decrease in fixed liabilities is attributed to a decrease of 3,261 million yen in long-term loans
payable.
(Net assets)
Total net assets as of December 31, 2018 amounted to 51,770 million yen, an increase of 2,016 million yen compared to
December 31, 2017. The increase in net assets is mainly attributed to an increase of 3,055 million yen in retained earnings.

(3) Overview of cash flows for the current period
Cash and cash equivalents (hereinafter referred to as "funds") as of December 31, 2018 amounted to 28,516 million yen, adecrease of 2,770 million yen compared to December 31, 2017.
The status of respective cash flows for the current consolidated fiscal year and its main factors are as follows:(Cash flows from operating activities)
Cash flows from operating activities were positive at 5,587 million yen and major factors are as follows. Major factors
include an increase of 2,716 million yen in inventory assets, an increase of 1,807 million yen in accounts payable-trade,
payment for 1,288 million yen in income taxes, and 6,440 million yen in net income before income taxes.
The amount of funds obtained increased by 4,188 million yen (by 199.3%) compared to the previous consolidated fiscal
year. Major factors include an increase of 452 million yen in expenditures for inventory assets, a decrease of 1,201 million
yen in payment for income taxes, an increase of 1,038 million yen in net income before income taxes, and an increase of
814 million yen in income for accounts payable-other.
(Cash flows from investing activities)
Cash flows from investing activities were negative at 1,215 million yen and major factors are as follows. Major factors
include payment of 728 million yen in guarantee deposits, an expenditure of 337 million yen for the acquisition of
intangible fixed assets, and an expenditure of 127 million yen for the acquisition of tangible fixed assets.
The amount of funds spent decreased by 273 million yen (by 18.3%) compared to the previous consolidated fiscal year.
Major factors include a decrease of 1,444 million yen in incomes for time deposits, an increase of 701 million yen in
expenditures due to payment for guarantee deposits, cancellation of expenditures for the acquisition of shares in affiliatedcompanies in the amount of 1,142 million yen in the current consolidated fiscal year, a decrease of 638 million yen in
expenditures due to loans, and a decrease of 562 million yen in expenditures due to the acquisition of tangible fixed assets.

-3-

(Cash flows from financing activities)
Cash flows from financial activities were negative at 6,843 million yen. Major factors include an expenditure of 3,383
million yen due to repayment of long-term loans payable, a decrease of 1,823 million yen in short-term loans payable, andpayment of 1,577 million yen for dividends.
The amount of funds spent increased by 15,441 million yen (8,598 million yen in fund was obtained in the previous
consolidated fiscal year) compared to the previous consolidated fiscal year. Major factors include an income of 5,092
million yen due to the issuance of shares, cancellation of income due to the sale of treasury shares in the amount of 3,216
million yen in the current consolidated fiscal year, an increase of 3,223 million yen in expenditures due to repayment oflong-term loans payable, and an increase of 2,341 million yen in expenditures due to a decrease in short-term loans
payable.

(4) Future forecasts(Millions of yen)
FY ended
December 31, 2018
(Actual)
Net sales

FY ending
December 31, 2019
(Forecast)

Increase(decrease)

Increase(decrease) rate

182,220

193,000

10,7795.9Operating income

6,719

6,000

(719)

(10.7)

Ordinary income

6,585

6,052

(533)

(8.1)

Profit attributable toowners of parent

4,634

4,337

(297)

(6.4)

In the Asian Food Global Business, we will continue to grow stably in existing markets such as for Japanese foods in the North
American region while further expanding our business platform in other regions. In the North American region, we will further
seek to acquire new distribution routes for non-Japanese food products (corporate customers) and develop products actively tothis end. In the Agricultural & Seafood Products Trading Business, we will continue to maintain sales to the Japanesewholesale market, and work on expanding distribution routes to mass retailers, home-meal replacement industries, restaurant
chains and food product manufacturers as well as overseas distribution routes.
Meanwhile, amid a significant change to the external environment, the Company Group will strategically recruit professionals
equipped with specialized skills in a front-loaded manner, among other efforts, for the purpose of endeavors envisioning afuture growth. In the North American region, we will develop our logistics and operation and seek to acquire new distribution
routes (corporate customers). In other regions, we will build a structure to perform management on an area-by-area basis. For
the Group as a whole, we will recruit specialized professionals in an effort to further promote endeavors to broaden our productlineup and develop and bolster our logistics and operation across the Group. The Tokyo office is scheduled to be relocated in
the second half of the fiscal year in progress. We will work to vitalize communication and streamline operations by
consolidating office spaces, currently being on four different floors, into one single floor. We predict cost to rise for the Groupon the whole due to these measures.
Accordingly, we expect that net sales will stand at 193,000 million yen (an increase of 10,779 million yen compared to theprevious period), operating income will amount to 6,000 million yen (a decrease of 719 million yen compared to the previous
period), ordinary income will amount to 6,052 million yen (a decrease of 533 million yen compared to the previous period),and profit attributable to owners of parent will total 4,337 million yen (a decrease of 297 million yen compared to the previous
period).
[Prerequisites for the forecast]
The exchange rate is assumed to be 110 yen/U.S. dollar.

2. Basic approach on selection of accounting standards
The Company Group prepares the consolidated financial statements in accordance with Japanese Generally Accepted Accounting
Principles ("Japanese GAAP"), taking into consideration the workload for establishing the system for the preparation of theconsolidated financial statements in accordance with International Financial Reporting Standards (IFRS).

-4-3. Consolidated financial statements and major notes(1) Consolidated balance sheet(Millions of yen)
FY 2017(As of December 31, 2017)

FY 2018(As of December 31, 2018)

31,30328,520Notes and accounts receivable—trade
Inventories

18,81623,185

19,54725,425

Deferred tax assets
Other

212
2,066

185
1,604

Allowance for doubtful accounts

(262)

(158)

75,32275,124

AssetsCurrent assets
Cash and deposits

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

2,455

1,857

Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

451
105

374
75

Leased assets, net
Other, net

246
280

185
279

3,538

2,771

760
195

671
168

40
1,174

303
815

73

69

2,245

2,028

Investment securities
Guarantee deposits

1,303
365

1,255
1,058

Deferred tax assets
Other

825
762

718
810

Allowance for doubtful accounts

(26)

(178)

Total investments and other assets

3,230

3,662

9,014

8,462

84,336

83,587

Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Customer-related assets
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets-5-

(Millions of yen)
FY 2017(As of December 31, 2017)

FY 2018(As of December 31, 2018)

9,959
4,935

11,540
2,640

151
60

140
52

2,322
195

2,740
700

525
–

538
5

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 shareholders’ benefits
Other

1,497

1,816

Total current liabilities

19,64820,176

12,612
191

9,351
135

221
494

126
560

Net defined benefit liability
Other

1,007
406

1,087
378

Total non-current liabilities

14,934

11,641

34,58331,817

Shareholders’ equity
Capital stock

2,646

2,646

Capital surplus
Retained earnings

6,531
39,173

6,531
42,229Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits

Total liabilities
Net assets

Treasury shares

(0)

(0)

48,351

51,406

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

15

6

8

(3)

Foreign currency translation adjustment

1,378

360

Total shareholders’ equity

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-6-

1,402

363

49,753

51,77084,336

83,587

(2) Consolidated statements of income and comprehensive income
Consolidated statement of income
FY 2017(January 1, 2017 to
December 31, 2017)
172,078(Millions of yen)
FY 2018(January 1, 2018 to
December 31, 2018)
182,220

Cost of sales

142,232

150,361

Gross profit

29,84531,858Selling, general and administrative expenses

23,521

25,139Operating income

6,324

6,719

Interest and dividend income
Share of profit of entities accounted for using equity
methodInsurance benefits received

95

158

28

–

1

176

Other

32

38

Total non-operating income

158

373

197

160

Listing-related expenses
Loss on equity-method investments

114
–

–
15

Foreign exchange losses
Provision of allowance for doubtful accounts

252
–

214
58

1

57

Net sales

Non-operating income

Non-operating expenses
Interest expenses

Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

565

506

5,916

6,585

2

1

2

1

1

0

Impairment loss

515

146

Total extraordinary losses

516

146

Profit before income taxes

5,402

6,440

Income taxes—current
Income taxes—deferred

2,201
133

1,753
52

Total income taxes

2,334

1,805

Net income
Profit attributable to non-controlling interests

3,067

4,634

–

–

Profit attributable to owners of parent

3,067

4,634

-7-

Consolidated statement of comprehensive income
FY 2017(January 1, 2017 to
December 31, 2017)
3,067(Millions of yen)
FY 2018(January 1, 2018 to
December 31, 2018)
4,634

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

4
(34)

(8)
(11)

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

(679)

(945)

112

(72)

(596)

(1,038)Comprehensive income

2,470

3,596

(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

2,470

3,596

–

–

Net income
Other comprehensive income-8-(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (from January 1, 2017 to December 31, 2017)(Millions of yen)
Shareholders’ equity
Capital stock
Beginning balance

Capital surplus

Retained earnings

100

774

2,546

2,546

36,111

Total shareholders’equityTreasury shares(5)36,980Changes during the period
Issuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChanges in items otherthan shareholders’equity, net
Total changes during theperiodEnding balance

5,092
(4)

(4)

3,067

3,067

3,210

(0)

(0)

5

3,216

2,546

5,756

3,062

5

11,370

2,646

6,531

39,173(0)48,351

Accumulated other comprehensive income
Valuation difference on
Deferred gains or losses
Foreign currency
Total accumulated otheravailable-for-saleon hedges
translation adjustment comprehensive income
securities
Beginning balance

11

42

1,945

1,999

Total net assets

38,979Changes during the period
Issuance of new shares

5,092

Dividends of surplus(4)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChanges in items otherthan shareholders’equity, net
Total changes during theperiodEnding balance

3,067
(0)
3,216
4

(34)

(567)

(596)

(596)

4

(34)

(567)

(596)

10,774

15

8

1,378

1,402

49,753-9-

Current consolidated fiscal year (from January 1, 2018 to December 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock
Beginning balance

Capital surplus

2,646

Retained earnings

6,531

39,173

Total shareholders’equityTreasury shares(0)48,351

Changes during the period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChanges in items otherthan shareholders’equity, net
Total changes during theperiodEnding balance(1,578)(1,578)

4,634

4,634
(0)

(0)

–

–

3,055

(0)

3,055

2,646

6,531

42,229(0)51,406

Accumulated other comprehensive income
Valuation difference on
Deferred gains or losses
Foreign currency
Total accumulated otheravailable-for-saleon hedges
translation adjustment comprehensive income
securities
Beginning balance

15

8

1,378

1,402

Total net assets

49,753

Changes during the period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChanges in items otherthan shareholders’equity, net
Total changes during theperiodEnding balance(1,578)
4,634
(0)
(8)

(11)

(1,018)(1,038)(1,038)(8)(11)(1,018)(1,038)

2,016

6

(3)

360

363

51,770- 10 -

(4) Consolidated Statement of Cash Flows(Millions of yen)
FY 2018(January 1, 2018 to
December 31, 2018)

FY 2017(January 1, 2017 to
December 31, 2017)
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodForeign exchange losses (gains)
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable—trade
Increase (decrease) in accounts payable—other
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for shareholder benefit
programIncrease (decrease) in net defined benefit liability
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refunded
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Expenditures due to payment for guarantee deposits
Purchase of shares of affiliates
Additional purchase of shares of subsidiaries
Payments of loans receivable
Net decrease (increase) in time deposits
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of common shares
Purchase of treasury shares
Repayments of finance lease obligations
Cash dividends paid
Proceeds from sales of treasury shares
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting frommerger of consolidated subsidiaries and nonconsolidated
subsidiaries
Cash and cash equivalents at end of period- 11 -

5,402
1,116
515
(70)
(95)
197

6,440
1,104
146
54
(158)
160

(28)

15

424
(1,432)(2,263)
1,196
(378)
(4)

38
(1,041)(2,716)
1,807
436
21

–

5

102
(796)
3,883
102
(189)
(2,489)
92
1,399

146
233
6,692
168
(170)
(1,288)
184
5,587

(689)
(171)
(27)
(1,142)
(305)
(638)
1,461
24
(1,488)

(127)
(337)
(728)
–
–
–
17
(38)
(1,215)

517
(159)
5,092
(0)
(63)
(4)
3,216
8,598
(249)
8,259
22,909(1,823)(3,383)–(0)(58)(1,577)–(6,843)(299)(2,770)31,286

117–

31,28628,516

(5) Notes to the consolidated financial statements(Notes to assumption of going concern)
No relevant items.
(Changes in presentation methods)(Changes associated with the application of the U.S. Accounting Standards "Balance Sheet Classification of Deferred Taxes")
Consolidated overseas subsidiaries, that adopt U.S. Accounting Standards, applied "Balance Sheet Classification of Deferred
Taxes" (U.S. Financial Accounting Standards Board Accounting Standards Update 2015–17, November 20, 2015) starting fromconsolidated financial statements at the end of the current consolidated fiscal year. As a result, starting from the current
consolidated fiscal year, they changed the presentation methods for deferred tax assets and liabilities, including deferred tax
assets in the category of investments and other assets and deferred tax liabilities in the category of fixed liabilities.
Consequently, 553 million yen included in "deferred tax assets" in the category of current assets and 484 million yen included
in "deferred tax assets" in the category of investments and other assets were rearranged with 212 million yen for "deferred tax
assets" in the current assets and 825 million assets for "deferred tax assets" in investments and other assets.
(Consolidated balance sheet)
Starting from the current consolidated fiscal year, "Software in progress," included in "Other" of the intangible fixed assets inthe previous consolidated fiscal year, was reported as an independent account because it gained financial importance. The
consolidated financial statements for the previous consolidated fiscal year were rearranged to reflect this change in thepresentation method thereon.
As a result, 114 million yen, included in "Other" of the intangible fixed assets in the balance sheet of the previous consolidated
fiscal year, was rearranged with 40 million yen for "Software in progress" of the intangible fixed assets and 73 million yen for"Other."(Consolidated cash flow statements)
Starting from the current consolidated fiscal year, "Expenditures due to payment for guarantee deposits," included in "Other"of the cash flows from investment activities in the previous consolidated fiscal year, was reported as an independent accountbecause it had gained financial importance. The consolidated financial statements for the previous consolidated fiscal year
were rearranged to reflect this change in the presentation method.
As a result, (2) million yen, indicated in "Other" of the cash flows from investment activities in the consolidated cash flow
statements of the previous consolidated fiscal year, was rearranged with (27) million yen for "Expenditures due to payment forguarantee deposits" and (24) million yen for "Other."- 12 -

(Segment information)[Segment information]
1.

Overview of reporting segments
A reporting segments of the Company Group is one of the structural units of the Company Group, in which segregated financial
information is available, and is subject to review on a regular basis so that the Board of Directors could determine theallocation of management resources and evaluate the operating results.
Under the Company Group’s holding company structure, respective companies including Nishimoto Trading Co., Ltd.,
Wismettac Asian Foods, Inc., etc., that carry on the "Asian Food Global Business," Wismettac Foods, Inc. that carries on the"Agricultural & Seafood Products Trading Business," etc., develop a comprehensive strategy regarding the products andservices provided and conduct business activities.
Therefore, the Company Group considers the similarities of economic characteristics, etc., and classifies each company intoeither one of three reporting segments that are "Asian Food Global Business," "Agricultural & Seafood Products Trading
Business," and "Other business."
The details of services that are included in each reporting segment are as follows:
Segment

Asian Food Global Business
Agricultural & Seafood Products
Trading Business
Other business

2.

Major products or business details
Wholesale and distribution business of Asian food products and ingredients with a focus
on Japanese food around the world, etc.
Import and wholesaling of perishable and frozen processed fruits and vegetables, marine
products, etc. to wholesale markets, volume sellers, restaurants, home-meal replacement
industry, food manufacturers, etc. in Japan, export of domestically produced vegetables
and fruits, triangular trade, and so forth.
Original product sales business using foreign brand foods and characters, sales ofsupplements, catalog mail order business, etc.

Method of calculation of the amount of sales, profit or loss, assets, liabilities and other items for each reporting segment
The accounting treatment for the reported business segments is basically the same as that adopted in the preparation of theconsolidated financial statements.
The profit of the reporting segment is a figure on an operating income basis. The amount of intersegment sales and transfers are
based on market prices.

- 13 -

3.

Information on the amount of sales, profit or loss, assets, liabilities and other items for each reporting segment

Previous consolidated fiscal year (from January 1, 2017 to December 31, 2017)(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products Other business
Global BusinessTrading Business

Adjustment(Note 1)

Total

Amount recorded on
the Consolidated
Financial Statements(Note 2)

Net sales
Sales to external customers

118,444

49,643

3,990

172,078–

Intersegment sales or transfers

9,371

439

–

9,811

(9,811)–

127,816

50,083

3,990

181,890(9,811)

172,078

Total

172,078

Segment profit

5,699

431

174

6,305

18

6,324

Segment assets

53,111

11,2491,807

66,16818,16884,336

929

11

7

948

72

1,020

1,247

–

–

1,247

–

1,247

764

8

28

800

83

884

Other items
Depreciation
Investments in entities accounted forusing equity method
Increase in property, plant andequipment as well as intangible assets(Note) 1. Adjustments are as follows:(1) "Adjustment" for segment profit in the amount of 18 million yen includes (201) million yen for elimination ofintersegment transactions and 220 million yen for company profit/loss not allotted to reporting segments (net company
profits and net company expenses). Company profits consist mainly of dividend income from reporting segments, andcompany expenses mainly comprise general and administrative expenses not attributed to reporting segments.
(2) "Adjustment" for segment assets in the amount of 18,168 million yen includes 22,655 million yen for company assets
not allotted to reporting segments and so forth. The company-wide assets are mainly surplus funds (cash and deposits)
that are not attributable to any reporting segments.
(3) The depreciation adjustment of 72 million yen is mainly depreciation concerning company-wide assets.
(4) The adjustment of 83 million yen in relation to the increase in property, plant and equipment as well as intangible assets
is the increase in non-current assets concerning the company-wide assets.
2. Segment profit is adjusted with operating income in the consolidated financial statements.
Current consolidated fiscal year (from January 1, 2018 to December 31, 2018)(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products Other business
Global BusinessTrading Business

Adjustments(Note 1)

Total

Amount recorded on
the Consolidated
Financial Statements(Note 2)

Net sales
Sales to external customers

125,11252,886

4,221

182,220–

Intersegment sales or transfers

9,423

227

0

9,651

(9,651)–

134,536

53,113

4,221

191,872(9,651)

182,220

Segment profits

5,409

1,040

262

6,712

6

6,719

Segment assets

58,093

11,598

1,842

71,534

12,053

83,587

937

11

7

957

72

1,030

–

–

–

–

–

–

169

8

19

196

269

465

Total

182,220

Other items
Depreciation
Investments in entities accounted forusing equity method
Increase in property, plant andequipment as well as intangible assets(Note) 1. Adjustments are as follows:(1) "Adjustment" for segment profit in the amount of 6 million yen includes (1,195) million yen for elimination ofintersegment transactions and 1,201 million yen company profit/loss not allotted to reporting segments (net company
profits and net company expenses). Company profits consist mainly of dividend income from reporting segments, andcompany expenses mainly comprise general and administrative expenses not attributed to reporting segments.
(2) "Adjustment" for segment assets in the amount of 12,053 million yen includes 18,836 million yen for company assets
not allotted to reporting segments and so forth. The company-wide assets are mainly surplus funds (cash and deposits)
that are not attributable to any reporting segments.
(3) The depreciation adjustment of 72 million yen is mainly depreciation concerning company-wide assets.
(4) The adjustment of 269 million yen in relation to the increase in property, plant and equipment as well as intangible
assets is the increase in non-current assets concerning the company-wide assets.
2. Segment profit is adjusted with operating income in the consolidated financial statements.

- 14 -

[Related information]
Previous consolidated fiscal year (from January 1, 2017 to December 31, 2017)
1.

Information on respective products and services
Similar information is disclosed in the "Segment information," and therefore descriptions are omitted.

2.

Information for each region(1) Net sales(Millions of yen)Japan

North America
56,340Other

101,424

Total
14,313172,078(Note) Of North America, 88,022 million yen is for the U.S.
(2) Property, plant and equipment(Millions of yen)Japan

North America
118

Other
2,232

Total
1,187

3,538

(Note) 1. Of North America, 2,170 million yen is for the U.S.
2. "Other" includes 950 million yen for the United Kingdom.
3.

Information for major customers
With respect to net sales to external customers, there are no customers that accounts for 10% or more of the net sales on the
consolidated statement of income, and therefore descriptions are omitted.

Current consolidated fiscal year (from January 1, 2018 to December 31, 2018)
1.

Information on respective products and services
Similar information is disclosed in the "Segment information," and therefore descriptions are omitted.

2.

Information for each region(1) Net sales(Millions of yen)Japan

North America
59,623

Other

106,668

Total
15,928

182,220(Note) Of North America, 92,699 million yen is for the U.S.
(2) Property, plant and equipment(Millions of yen)Japan

North America
77

Other
1,821

Total
872

2,771

(Note) 1. Of North America, 1,770 million yen is for the U.S.
2. "Other" includes 845 million yen for the United Kingdom.
3.

Information for major customers
With respect to net sales to external customers, there are no customers that accounts for 10% or more of the net sales on the
consolidated statement of income, and therefore descriptions are omitted.

- 15 -

[Information regarding impairment losses on non-current assets for each reporting segment]
Previous consolidated fiscal year (from January 1, 2017 to December 31, 2017)(Millions of yen)
Asian Food Global
Business

Agricultural &Seafood Products
Trading Business

515–

Impairment loss

Company-wide/
Eliminations

Other business
–

Total
–

515

Current consolidated fiscal year (from January 1, 2018 to December 31, 2018)(Millions of yen)
Asian Food Global
Business

Agricultural &Seafood Products
Trading Business

146–

Impairment loss

Company-wide/
Eliminations

Other business
–

Total
–

146

[Information on amortization of goodwill and unamortized balance for each reporting segment]
Previous consolidated fiscal year (from January 1, 2017 to December 31, 2017)(Millions of yen)
Asian Food Global
Business

Agricultural &Seafood Products
Trading Business

95

–

–

–

95

760

–

–

–

760

Amortization forthe current period
Balance at end ofcurrent period

Company-wide/
Eliminations

Other business

Total

Current consolidated fiscal year (from January 1, 2018 to December 31, 2018)(Millions of yen)
Asian Food Global
Business

Agricultural &Seafood Products
Trading Business

74

–

–

–

74

671

–

–

–

671

Amortization forthe current period
Balance at end ofcurrent period

Company-wide/
Eliminations

Other business[Information on gain on bargain purchase for each reporting segment]
Previous consolidated fiscal year (from January 1, 2017 to December 31, 2017)
No relevant items.
Current consolidated fiscal year (from January 1, 2018 to December 31, 2018)
No relevant items.

- 16 -

Total

(Per share information)
FY 2017(January 1, 2017 to December 31, 2017)

FY 2018(January 1, 2018 to December 31, 2018)

Net assets per share

3,466.38 yen

3,606.92 yen

Net income per share

236.37 yen

322.89 yen(Note) 1.
2.

3.

With respect to diluted net income per share, there are no diluted shares, and therefore descriptions are omitted.
The Company conducted a five-for-one common stock split on June 1, 2017. Net assets per share and net income pershare for the current period were calculated on the assumption that the stock split had been conducted at the beginning of
the fiscal year ended December 31, 2017.
The basis for calculating net income per share is as follows:

Profit attributable to owners of parent (million yen)Amount not attributable to common shareholders (million yen)
Profit attributable to owners of parent concerning common shares(million yen)
Average number of common shares during the period (shares)(Significant subsequent events)
No relevant items.

- 17 -FY 2017(January 1, 2017 to
December 31, 2017)

FY 2018(January 1, 2018 to
December 31, 2018)

3,067

4,634

–

–

3,067

4,634

12,976,450

14,353,072