Consolidated Financial Results for the Fiscal Year Ended December 31, 2017
(Japanese GAAP)
February 14, 2018
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, 2018
Scheduled date of commencement of dividend payments:
March 13, 2018
Scheduled date of submission of the annual securities report:
March 28, 2018
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, 2017(from January 1, 2017 to December 31, 2017)(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%

Million yen%

Million yen%

FY ended December 31, 2017
172,078
8.7
6,324
FY ended December 31, 2016
158,3380.1
7,329(Note) Comprehensive income
FY ended December 31, 2017: 2,470 million yen (33.3%)
FY ended December 31, 2016: 1,853 million yen (-54.3%)(13.7)
(8.4)

5,916
6,922

(14.5)
(4.5)

3,067
2,847

7.7
(36.9)Net income per
share

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

Yen

Yen

%

%

%

FY ended December 31, 2017236.37
–
6.9
7.5
3.7
FY ended December 31, 2016
227.95
–
7.5
10.4
4.6
(Reference) Equity in earnings of affiliates
FY ended December 31, 2017: 28 million yen
FY ended December 31, 2016: –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, 2016.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

FY ended December 31, 201784,33649,75359.0
3,466.38
FY ended December 31, 2016
72,721
38,97953.6
3,120.03(Reference) Shareholders’ equity
FY ended December 31, 2017: 49,753 million yen
FY ended December 31, 2016: 38,979 million yen(Note)
1. 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, 2016.
2.

The payout ratio (consolidated) and the dividends on net assets (consolidated) for the fiscal year ended December 31, 2017 areindicated, respectively, by the ratio of the total amount of dividends divided by the profit attributable to owners of parent and theratio of the total amount of dividend divided by the net assets.

(3) Status of consolidated cash flows
Cash flows fromoperating activities
FY ended December 31, 2017
FY ended December 31, 2016

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

1,399
3,811

(1,488)(6,929)

8,598
8,925

31,28622,909―1―

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

Yen

Yen

Total amount
Dividends
Payout ratioof dividends
on net assets

Total

Yen

(Total)Yen(Consolidated)

Million yen(Consolidated)%%

FY ended December 31, 2016
–
0.00
–
2.00
2.00
4
0.2
0.0
FY ended December 31, 2017
–
0.00
–
70.00
70.00
1,004
32.8
2.3
FY ending December 31, 2018
–
40.00
–
55.00
95.00
29.2
(Forecast)(Note) The Company conducted a five-for-one common stock split on June 1, 2017. For the fiscal year ended December 31, 2016,
the actual amount of dividends before the stock split is stated.

3. Consolidated financial results forecast for the fiscal year ending December 31, 2018 (from January 1, 2018 to
December 31, 2018)

Net sales
Million yen

First half of FY ending
December 31, 2018
FY ending December 31, 2018

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

Operating income% Million yen% Million yen% Million yen%

Yen

92,334

6.6

3,167

(2.8)

3,120

2.2

2,180

50.5

151.93

184,814

7.4

6,775

7.1

6,681

12.9

4,664

52.1

324.98* 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)/

ExcludedNone–companies (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,
2017
December 31,
2017
December 31,
2017

14,353,140 shares
36

shares12,976,450 shares

December 31,
2016
December 31,
2016
December 31,
2016

13,213,240

shares720,000

shares12,493,240

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,
2016.

―2―

(Reference) Overview of respective financial results

1. Respective financial results for the period ended December 31, 2017 (from January 1, 2017 to December 31,
2017)(1) Respective operating results(Percentages denote year-on-year changes)
Net sales

FY ended December 31, 2017
FY ended December 31, 2016

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen

%

1,865
1,582

17.9
72.8

200
152

31.4
244.3

93
159

(41.5)
249.7

132
89

48.9
–

Net income per share

Diluted net income
per share

Yen

Yen

FY ended December 31, 2017
10.24–
FY ended December 31, 2016
7.14–
(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, 2016.

(2) Respective financial position
Total assets

Net assets

Million yen

Million yen

Equity ratio

Net assets per share%Yen

FY ended December 31, 2017
17,071
13,31578.0
927.69FY ended December 31, 2016
8,657
4,874
56.3
390.15(Reference) Shareholders’ equity
FY ended December 31, 2017: 13,315 Million yen
FY ended December 31, 2016: 4,874 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, 2016.

* Summary of financial results is not subject to an audit.
* Explanation of the proper use of financial results forecasts and other notes
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 “(4) Future forecasts” under the chapter
titled “1. Overview of operating results, etc.” on the page 4 of the attachment.
The Company plans to hold a presentation meeting for institutional investors and analysts on February 15, 2018 (Thursday). The
financial results presentation materials to be distributed at the meeting are scheduled to be posted on the Company’s website
concurrently with the opening of the meeting.

―3― Attachment: Table of Contents
1. Overview of operating results, etc............................................................................................................................ 5(1) Overview of operating results for the current period ......................................................................................... 5(2) Overview of financial position for the current period ........................................................................................ 6(3) Overview of cash flows for the current period ................................................................................................... 6(4) Future forecasts.................................................................................................................................................. 7
2. Basic approach on selection of accounting standards .............................................................................................. 7
3. Consolidated financial statements and major notes .................................................................................................. 8(1) Consolidated balance sheet ................................................................................................................................ 8(2) Consolidated statements of income and comprehensive income ..................................................................... 10(3) Consolidated statement of changes in equity ................................................................................................... 12(4) Consolidated statement of cash flows .............................................................................................................. 14(5) Notes to the consolidated financial statements ................................................................................................ 15(Notes to assumption of going concern) .......................................................................................................... 15(Additional information） ............................................................................................................................... 15(Segment information) ..................................................................................................................................... 15(Business combination).................................................................................................................................... 18(Per share information) .................................................................................................................................... 19(Significant subsequent events) ....................................................................................................................... 19―4―

1. Overview of operating results, etc.
(1) Overview of operating results for the current period
The overall world economy during the current consolidated fiscal year continued in its ongoing moderate recovery. However,
future outlook for places such as China and other emerging market economies in Asia, as well as the developments and effectsof U.S. government policies, etc., continue to be uncertain.
Meanwhile, the overall Japanese economy kept on its moderate recovery track as corporate business results and theemployment situation improved.
Under such circumstances, the Company Group has been working on improving operating results by operating two main
businesses; “Asian Food Global Business” that distributes Asian food products and ingredients such as Japanese food aroundthe world 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 in domestic markets, exports and/or
arranges an offshore trade.
The Asian Food Global Business sells Asian food products and ingredients such as Japanese food to restaurants, grocery
supermarkets, etc., in foreign countries with a focus on the North American region. It introduces integrated operations
including planning, development, purchases, import custom clearance, storage and delivery of products. Moreover, keeping
pace with the expansion of the market in the context of the global boom in Japanese food, the Company Group acquired two
companies as a consolidated subsidiary through M&A (in the United Kingdom and Hong Kong) during the fiscal year ended
December 2016 and has also acquired one company as a consolidated subsidiary through M&A (in Hong Kong), and has
invested in five companies as an affiliated company (one company in Germany and four companies in France (Note)) during
the fiscal year ended December 2017. As a result, the Company Group has established a global sales network, including 23
locations in the North American region and 14 locations in other regions.
The Agricultural and Seafood Trading Business imports and distributes fruits and vegetables as well as fishery products, etc., todomestic wholesale markets, mass retailers, restaurant chains and home-meal replacement industries, food productmanufacturers, etc. Furthermore, the Agricultural and Seafood Trading Business exports and/or arranges an offshore trade forfruits and vegetables. As the domestic import market remains on a plateau, the Agricultural and Seafood Trading Business has
been working on enhancing sales through various distribution routes (mass retailers, restaurant chains, home-meal replacement
industries, etc.) and overseas distribution routes (export of domestic fruits and vegetables, offshore trade for fruits andvegetables, etc.) in addition to the current wholesale market that has been the main distribution route up until now.
As a result, with respect to the financial results for the current consolidated fiscal year, net sales stood at 172,078 million yen(8.7% increase year-on-year), operating income amounted to 6,324 million yen (13.7% decrease year-on-year), ordinary
income amounted to 5,916 million yen (14.5% decrease year-on-year), and profit attributable to owners of parent totaled 3,067
million yen (7.7% increase year-on-year).
(Note) Four companies in France are treated as Group companies, of which three companies are consolidated subsidiaries of
the Group.

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
118,444 million yen (11.6% increase year-on-year) and operating income amounted to 5,699 million yen (6.0% decreaseyear-on-year).
Although net sales in the North American region grew steadily, operating income declined as selling, general andadministrative expenses climbed due to an increase in personnel expenses and logistics expenses, as well as a headcountexpansion aimed to bolster the marketing, merchandise and logistics business unit, respectively. In regions outside ofNorth America, both net sales and operating income saw a marked increase because we converted Harro Foods Limited in
the U.K. and Wismettac Nippon Foods Co., Ltd. in Hong Kong (the company’s name was changed from “Nippon Foods
Co., Ltd.” as of September 29, 2017) into consolidated subsidiaries of the Group, as well as business expansion andstrengthening of earning power at existing facilities.
(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 49,643 million yen (2.8% increase year-on-year) and operating income amounted to 431
million yen (60.1% decrease year-on-year).

―5―

Although net sales exceeded that of the previous period, operating income declined due to the impact of a spike in the costof citrus and tropical commodities since the fourth quarter of the previous consolidated fiscal year. Operating income has
been picking up in the fourth quarter of the current period, but it was not enough to compensate the financial results up to
the third quarter.
(iii) Other businesses
As to financial results of other businesses for the current consolidated fiscal year, net sales stood at 3,990 million yen(2.6% increase year-on-year) and operating income amounted to 174 million yen (5.7% increase year-on-year) due to
steady domestic sales of seasonal products such as products in relation to Halloween, Christmas, etc., as well as characterproducts, etc.

(2) Overview of financial position for the current period(Assets)
Total assets as of December 31, 2017 stood at 84,336 million yen, an increase of 11,615 million yen compared to
December 31, 2016, and was mainly attributable to the following.
Total current assets as of December 31, 2017 amounted to 75,663 million yen, an increase of 10,526 million yen compared
to December 31, 2016. The increase in current assets was chiefly due to an increase of 6,851 million yen in cash anddeposits and an increase of 1,918 million yen in inventories.
Total non-current assets as of December 31, 2017 came to 8,673 million yen, an increase of 1,089 million yen compared to
December 31, 2016. The increase in total non-current assets was caused by an increase of 1,173 million yen in investment
securities that were newly acquired by the Company.
(Liabilities)
Total liabilities as of December 31, 2017 stood at 34,583 million yen, an increase of 841 million yen compared to
December 31, 2016, and was mainly attributable to the following.
Total current liabilities as of December 31, 2017 amounted to 19,648 million yen, an increase of 818 million yen
compared to December 31, 2016, which was chiefly due to an increase of 1,187 million yen in notes and accounts
payable—trade in relation to increased net sales.
Total non-current liabilities as of December 31, 2017 came to 14,934 million yen, an increase of 23 million yen compared
to December 31, 2016, which was caused by an increase of 110 million yen in net defined benefit liability.
(Net assets)
Total net assets as of December 31, 2017 stood at 49,753 million yen, an increase of 10,774 million yen compared to
December 31, 2016, which was due to an increase of 2,546 million yen in capital stock and an increase of 5,756 million
yen in capital surplus resulting from the issuance of new shares and the disposal of treasury shares in relation to the listingof the Company’s stock on the First Section of the Tokyo Stock Exchange, as well as an increase of 3,062 million yen inretained earnings.

(3) Overview of cash flows for the current period
Cash and cash equivalents (hereinafter referred to as “funds”) as of December 31, 2017 amounted to 31,286 million yen, an
increase of 8,377 million yen compared to December 31, 2016.
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 1,399 million yen and major factors are as follows. Although income
taxes paid stood at 2,489 million yen and an increase in inventories stood at 2,263 million yen, profit before income
amounted to 5,402 million yen and an increase in notes and accounts payable—trade amounted to 1,196 million yen.
Funds decreased by 2,411 million yen (63.3% decrease in receipt year-on-year) compared to the previous consolidated
fiscal year and major factors are as follows. Although notes and accounts payable—trade increased by 1,110 million yen,
impairment loss that is non-fund expenses decreased by 959 million yen, inventories increased by 860 million yen, notes
and accounts receivable—trade increased by 573 million yen and accounts payable—other decreased by 515 million yen.

―6―

(Cash flows from investing activities)
Cash flows from investing activities were negative at 1,488 million yen and major factors are as follows. Although time
deposits increased to 1,461 million yen, disbursement related to purchase of shares of affiliates amounted to 1,142 million
yen, disbursement related to purchase of property, plant and equipment amounted to 689 million yen, disbursement related
to payments of loans receivable amounted to 638 million yen.
Funds decreased by 5,440 million yen (78.5% decrease in disbursement year-on-year) compared to the previous
consolidated fiscal year and major factors are as follows. Although disbursement related to purchase of shares of affiliates
increased by 1,142 million yen, disbursement of 4,373 million yen related to purchase of shares of subsidiaries resulting inchanges in scope of consolidation did not arise during the current consolidated fiscal year and time deposits increased by
2,899 million yen.
(Cash flows from financing activities)
Cash flows from financing activities were positive at 8,598 million yen, which was mainly due to proceeds from issuanceof common shares of 5,092 million yen and proceeds from sales of treasury shares of 3,216 million yen.
Funds decreased by 327 million yen (3.7% decrease in receipt year-on-year) compared to the previous consolidated fiscal
year and major factors are as follows. Although proceeds from issuance of common shares increased by 5,092 million yen
and proceeds from sale of treasury shares increased by 3,216 million yen, proceeds from long-term loans payable of 9,680
million yen did not arise during the current consolidated fiscal year.

(4) Future forecasts(Millions of yen)
FY ended
December 31, 2017
(Actual)
Net sales

FY ending
December 31, 2018
(Forecast)

Increase(Decrease)

Increase (decrease)rate (%)

172,078

184,814

12,735

7.4

Operating income

6,324

6,775

451

7.1

Ordinary income

5,916

6,681

764

12.9

Profit attributable toowners of parent

3,067

4,664

1,597

52.1

In the Asian Food Global Business, we will further promote expanding sales to existing customers and developing newcustomers to maintain the growth in the North American region, and also work on further expanding sales in other regions.
Moreover, we expect an increase in personnel expenses and logistics expenses in the North American region, and therefore wewill make an effort to improve the profit margin by lowering the cost of goods as well as optimizing and streamlining the entire
operations. In the Agricultural & Seafood Products Trading Business, we will continue to maintain sales to the wholesalemarket, and work on expanding distribution routes to mass retailers, home-meal replacement industries, restaurant chains, foodproduct manufacturers as well as overseas distribution routes. The impact of a spike in the cost of part of commodities handled
by the Agricultural & Seafood Products Trading Business is weakening, and therefore we expect an increase in operating
income as the profit margin improves. Income taxes are expected to drop due to the impact of the tax reform in relation to a cut
in the corporate tax rate, etc., in North America.
Accordingly, we expect that net sales will stand at 184,814 million yen (an increase of 12,735 million yen compared to theprevious period), operating income will amount to 6,775 million yen (an increase of 451 million yen compared to the previous
period), ordinary income will amount to 6,681 million yen (an increase of 764 million yen compared to the previous period),and profit attributable to owners of parent will total 4,664 million yen (an increase of 1,597 million yen compared to theprevious 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).

―7―3. Consolidated financial statements and major notes(1) Consolidated balance sheet(Millions of yen)
FY 2016(As of December 31, 2016)

FY 2017(As of December 31, 2017)

AssetsCurrent assets
Cash and deposits

24,45231,303

Notes and accounts receivable—trade
Inventories

17,633
21,266

18,81623,185

Deferred tax assets
Other

872
1,248

553
2,066

Allowance for doubtful accounts

(335)

(262)

Total current assets

65,13775,663

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

2,356

2,455

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

417
109

451
105

Leased assets, net
Other, net

298
318

246
280

3,499

3,538

919
149

760
195

Customer-related assets
Other

1,985
116

1,174
114

Total intangible assets

3,170

2,245

Investments and other assets
Investment securities

129

1,303

Guarantee deposits
Deferred tax assets

361
408

365
484

Other
Allowance for doubtful accounts

50
(35)

762
(26)

Total investments and other assets

914

2,889

Total property, plant and equipment
Intangible assets
Goodwill
SoftwareTotal non-current assets
Total assets

―8―

7,583

8,673

72,721

84,336

(Millions of yen)
FY 2016(As of December 31, 2016)

FY 2017(As of December 31, 2017)

Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payable

8,772
4,194

9,959
4,935

Current portion of long-term loans payable
Lease obligations

143
62

151
60

Accounts payable—other
Income taxes payable

3,111
367

2,322
195

Provision for bonuses
Other

540
1,638

525
1,497

Total current liabilities

18,83019,64812,542
237

12,612
191

Deferred tax liabilities
Provision for directors’ retirement benefits

369
502

221
494

Net defined benefit liability
Other

897
361

1,007
406

Total non-current liabilities

14,911

14,93433,741

34,583

Shareholders’ equity
Capital stock

100

2,646

Capital surplus
Retained earnings

774
36,111

6,531
39,173(5)(0)

36,98048,351

11

15

42

8

Foreign currency translation adjustment

1,945

1,378

Total accumulated other comprehensive income

1,999

1,402

38,97949,75372,721

84,336

Non-current liabilities
Long-term loans payable
Lease obligations

Total liabilities
Net assets

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Deferred gains or losses on hedges

Total net assets
Total liabilities and net assets―9―(2) Consolidated statements of income and comprehensive income
Consolidated statement of income
FY 2016(January 1, 2016 to
December 31, 2016)
158,338(Millions of yen)
FY 2017(January 1, 2017 to
December 31, 2017)
172,078

Cost of sales

130,400

142,232

Gross profit

27,93829,845

Selling, general and administrative expenses

20,60823,521

Operating income

7,329

6,324

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

61

95

–

28

45

1

Other

22

32

Total non-operating income

129

158

138

197

–
397

114
252

Net sales

Non-operating income

Non-operating expenses
Interest expenses
Listing-related expenses
Foreign exchange losses
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

1

1

536

565

6,922

5,916

4

2

4

2

12

1

Impairment loss

1,475

515

Total extraordinary losses

1,487

516

Profit before income taxes

5,440

5,402

Income taxes—current
Income taxes—deferred

2,539
52

2,201
133

Total income taxes

2,592

2,334

Net income
Profit attributable to non-controlling interests

2,847

3,067

–

–

Profit attributable to owners of parent

2,847

3,067

―10―

Consolidated statement of comprehensive income

2,847(Millions of yen)
FY 2017(January 1, 2017 to
December 31, 2017)
3,067

(1)
47

4
(34)

(1,040)

(679)

–

112

(994)

(596)

Comprehensive income

1,853

2,470

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

1,853

2,470

–

–

FY 2016(January 1, 2016 to
December 31, 2016)
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
Total other comprehensive income―11―(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)(Millions of yen)
Shareholders’ equity
Capital stock
Beginning balance

Capital surplus
100

Retained earnings

774

33,268

Total shareholders’equityTreasury shares(5)

34,137

Changes during the period
Dividends of surplus
Profit attributable toowners of parent
Changes in items otherthan shareholders'equity, net
Total changes during theperiodEnding balance

(4)

(4)

2,847

2,847

–

–

2,842

–

2,842

100

774

36,111(5)

36,980

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

12

(5)

2,986

2,993

Total net assets

37,131

Changes during the period
Dividends of surplus(4)

Profit attributable toowners of parent
Changes in items otherthan shareholders'equity, net
Total changes during theperiod(1)

47(1,040)

(994)

(994)

(1)

47

(1,040)

(994)

1,848

Ending balance

11

42

1,945

1,999

38,979

2,847

―12―

Current 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―13―

(4) Consolidated Statement of Cash Flows(Millions of yen)
FY 2017(January 1, 2017 to
December 31, 2017)

FY 2016(January 1, 2016 to
December 31, 2016)
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 net defined benefit liability
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Interest taxes refunded
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change inscope of consolidation
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
Proceeds from long-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
Other
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

―14―

5,440
849
1,475
(13)
(61)
138

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

–

(28)

(36)
(859)
(1,402)
86
137
(186)
125
649
6,340
53
(123)
(2,459)
–
3,811

424
(1,432)(2,263)
1,196
(378)
(4)
102
(796)
3,883
102
(189)
(2,489)92
1,399(1,089)
(73)

(689)
(171)

(4,373)––––(1,437)45(6,929)(1,142)
(305)
(638)
1,461
(2)
(1,488)

2,390
9,680
(3,079)
–
–
(63)
(4)
–
4
8,925
(648)
5,160
17,748

517
–
(159)
5,092
(0)
(63)
(4)
3,216
–
8,598
(249)
8,259
22,909–117

22,90931,286

(5) Notes to the consolidated financial statements(Notes to assumption of going concern)
No relevant items.
(Additional information）(Application of the application guidelines regarding the recoverability of deferred tax assets)
Starting from the fiscal year ended December 31, 2017, the Application Guidelines regarding the Recoverability of Deferred Tax
Assets (Application Guidelines for Business Accounting Standards No. 26 of March 28, 2016) were applied.
(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 of fresh and frozen fruits and vegetables, supply of food materials and ingredientsto wholesale markets, mass retailers, restaurant chains and home-meal replacement
industries and food product manufacturers, export of domestic fruits and vegetables,
arrangement of an offshore trade, etc.
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. Intersegment sales or transfers are based onprevailing market prices.

―15―

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, 2016 to December 31, 2016)(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products Other business
Global BusinessTrading Business

Total

Adjustment(Note 1)

Amount recorded on
the Consolidated
Financial Statements(Note 2)
158,338

Net sales
Sales to external customers

106,138

48,311

3,888

158,338–

Intersegment sales or transfers

9,449

54

–

9,504

(9,504)–

115,587

48,366

3,888

167,842(9,504)

158,338

Total
Segment profit

6,062

1,081

164

7,308

21

7,329

Segment assets

47,911

11,943

1,770

61,625

11,09572,721

769

6

8

785

64

849

–

–

–

–

–

–

1,138

20

16

1,175

57

1,232

Other items
Depreciation
Investments in entities accounted
for using equity method
Increase in property, plant andequipment as well as intangible
assets(Note) 1. Adjustments are as follows:(1) The segment profit adjustment of 21 million yen includes the elimination of intersegment transactions of (46) million
yen, company-wide expenses of 68 million yen that have not been allocated to each reporting segment, etc. The
company-wide expenses are mainly administrative expenses that are not attributable to any reporting segments.
(2) The segment asset adjustment of 11,095 million yen includes company-wide assets of 19,962 million yen that are not
attributable to each reporting segment, etc. The company-wide assets are mainly surplus funds (cash and deposits) thatare not attributable to any reporting segments.
(3) The depreciation adjustment of 64 million yen is mainly depreciation concerning company-wide assets.
(4) The adjustment of 57 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. The segment profit is reconciled with the operating income on the Consolidated Statement of Income.
Current 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

Total

Adjustments(Note 1)

Amount recorded on
the Consolidated
Financial Statements(Note 2)
172,078

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)–

Total

127,816

50,083

3,990

181,890(9,811)

172,078

Segment profits

5,699

431

174

6,305

18

6,324

Segment assets

53,111

11,2491,807

66,16818,16884,336

Other items
Depreciation
Investments in entities accounted
for using equity method
Increase in property, plant andequipment as well as intangible
assets

929

11

7

948

72

1,020

1,247

–

–

1,247

–

1,247

764

8

28

800

83

884

(Note) 1. Adjustments are as follows:(1) The segment profit adjustment of 18 million yen includes the elimination of intersegment transactions of (201) million
yen, company-wide expenses of 220 million yen that have not been allocated to each reporting segment, etc. The
company-wide expenses are mainly administrative expenses that are not attributable to any reporting segments.
(2) The segment asset adjustment of 18,168 million yen includes company-wide assets of 22,655 million yen that are not
attributable to each reporting segment. 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. The segment profit is reconciled with the operating income on the Consolidated Statement of Income.

―16―

[Related information]
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
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
55,974Other
93,353

Total
9,010

158,338(Note) Of North America, 81,575 million yen is for the U.S.
(2) Property, plant and equipment(Millions of yen)Japan

North America
124

Other
2,156

Total
1,217

3,499

(Note) Of North America, 2,087 million yen is for the U.S.
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, 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) Of North America, 2,170 million yen is for the U.S.
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.

―17―

[Information regarding impairment losses on non-current assets for each reporting segment]
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)(Millions of yen)
Asian Food Global
Business

Agricultural &Seafood Products
Trading Business

1,475

–

Impairment loss

Company-wide/
Eliminations

Other business
–

Total
–

1,475

Current 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

[Information on amortization of goodwill and unamortized balance for each reporting segment]
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)(Millions of yen)
Asian Food Global
Business

Agricultural &Seafood Products
Trading Business

–

–

–

–

–

919

–

–

–

919

Amortization forthe current period
Balance at end ofcurrent period

Company-wide/
Eliminations

Other business

Total

Current 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[Information on gain on bargain purchase for each reporting segment]
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
No relevant items.
Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
No relevant items.
(Business combination)
Determination of a provisional accounting treatment for business combinations
Regarding Wismettac Nippon Foods Co., Ltd. in Hong Kong (the company’s name was changed from “Nippon Foods Co., Ltd.” asof September 29, 2017) acquired in the previous consolidated fiscal year, we had applied a provisional accounting treatment to theallocation of its acquisition cost in the previous consolidated fiscal year, but the final accounting treatment was determined in thecurrent consolidated fiscal year.
As for the goodwill of 1,640 million yen calculated on a temporary basis in the previous fiscal year, it was settled as such that
goodwill decreased by 721 million yen, intangible assets and deferred tax liabilities increased by 863 million yen and 142 million
yen, respectively, using the straight-line method of depreciation over 11 years.

―18―

(Per share information)
FY 2016(January 1, 2016 to December 31, 2016)

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

Net assets per share

3,120.03 yen

3,466.38 yen

Net income per share

227.95 yen

236.37 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, 2016.
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.

―19―

FY 2016(January 1, 2016 to
December 31, 2016)

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

2,847

3,067

–

–

2,847

3,067

12,493,240

12,976,450