Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2022
(Japanese GAAP)

August 12, 2022
Company name: Nishimoto Co., Ltd.
Listed exchange: Tokyo
Code:
9260
URL: http://www.wismettac.com/
Representative:
Yoshiro Susaki, Chairman & President CEO
Contact:
Yuji Sasa, Director, Managing Executive Officer, CFO(Phone) 03-6870-2015
Scheduled date of filing of quarterly report:
August 12, 2022
Scheduled date of commencement of dividend payments:
September 16, 2022
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly 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 second quarter of the fiscal year ending December 31, 2022
(from January 1, 2022 to June 30, 2022)(1) Consolidated results of operations (cumulative)(Percentages denote year-on-year changes)
Net sales
Million yen

Operating income%

Million yen%

Million yen

Second quarter of FY ending
130,742
30.9
6,051
84.7
6,441
December 31, 2022
Second quarter of FY ended
99,917
25.2
3,275
—
3,334
December 31, 2021
(Note) Comprehensive income
Second quarter of FY ending December 31, 2022: 14,204 million yen (155.8%)
Second quarter of FY ended December 31, 2021: 5,553 million yen (—%)
Diluted net income
Net income per shareper share
Second quarter of FY ending
December 31, 2022
Second quarter of FY ended
December 31, 2021

Profit attributable toowners of parent

Ordinary income

Yen

Yen

313.84312.75180.26—%

Million yen

%

93.2

4,504

74.1

—

2,587

—

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

As of June 30, 2022
173,984
73,139(FY 2022 2Q)
As of December 31, 2021
141,769
59,862(FY 2021)(Reference)
Shareholders' equity
Second quarter of FY ending December 31, 2022: 72,621 million yen
FY ended December 31, 2021:
59,440 million yen

2.

41.7
41.9

Dividends
Annual dividends
First quarter-end

FY ended December 31, 2021
FY ending December 31, 2022
FY ending December 31, 2022
(Forecast)(Note)

Secondquarter-end

Third quarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

—
—

35.00
70.00

—

70.00

105.00—75.00

145.00

Revision to the forecast for dividends announced most recently: Yes
For details, refer to the "Notice Regarding Revision of Consolidated Earnings Forecasts for the Fiscal Year Ending December 2022, andRevision of Dividend of Surplus (Interim Dividend) and Year-End Dividend Forecasts" announced today.

3.

Consolidated financial results forecast for the fiscal year ending December 31, 2022
(from January 1, 2022 to December 31, 2022)
Net sales
Million yen%

Million yen%

Million yen%

Million yen%

Yen

265,000

24.3

10,50043.8

10,500

45.7

7,000

39.2

487.70FY ending December
31, 2022(Note)

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

Revision to the forecast for financial results announced most recently: Yes
For details, refer to the "Notice Regarding Revision of Consolidated Earnings Forecasts for the Fiscal Year Ending December 2022, andRevision of Dividend of Surplus (Interim Dividend) and Year-End Dividend Forecasts" announced today.

* Notes(1) Changes in significant subsidiaries during the first six months of the fiscal year:
None(Changes in specified subsidiaries resulting in changes in the scope of consolidation)– companies
New – companies (Company name) / Excluded(Company name)(2) Application of accounting treatment specific to the preparation of quarterly consolidated
financial statements:

Yes(3) Changes in accounting policies, changes to accounting estimates, and restatements(i)
Changes in accounting policies due to revisions of accounting standards:

Yes

(ii)

Changes in accounting policies other than (i) above:

None

(iii)

Changes in accounting estimates:

None

(iv)

Restatements:

None(4) Number of shares outstanding (common stock)(i)
Number of shares outstanding at the endof the period (including treasury shares)(ii)
Number of treasury shares at the end of
the period(iii) Average number of shares during theperiod (six months ended June 30, 2022)

As of June 30,2022
As of June 30,2022
As of June 30,
2022

14,353,140 shares
220 shares
14,352,980 shares

December 31,
2021
December 31,
2021

June 30, 2021

14,353,140 shares
153 shares
14,352,996 shares* These quarterly financial results are not subject to quarterly review procedures.
* Explanation of the proper use of financial results forecasts and other notes(Cautionary note on forward-looking statements, etc.)
The forward-looking statements such as financial results forecasts contained in this document are based on information currently
available to the Company and certain reasonable assumptions. Thus, these statements are not intended for management to promise theachievement 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 "(3) Explanation of future forecasts such as consolidated
financial results forecasts" under the chapter titled "1. Qualitative information on quarterly financial results" on the page 5 of theattachment.
(How to obtain the quarterly financial results supplementary materials)
The quarterly financial results supplementary materials will be disclosed on TDnet on August 12, 2022 and will also be posted on the
Company's website. The Company plans to hold a briefing meeting on the financial results for institutional investors and analysts on
August 17, 2022, based on these materials.

 Attachment: Table of Contents

1. Qualitative information on quarterly financial results .............................................................................................. 2(1) Explanation of operating results ........................................................................................................................ 2(2) Explanation of financial position ....................................................................................................................... 4(3) Explanation of future forecasts such as consolidated financial results forecasts................................................ 5
2. Quarterly consolidated financial statements and major notes .................................................................................. 6(1) Quarterly consolidated balance sheet ................................................................................................................. 6(2) Quarterly consolidated statements of income and comprehensive income ........................................................ 8(3) Quarterly consolidated statement of cash flows ............................................................................................... 10(4) Notes to the quarterly consolidated financial statements ................................................................................. 11(Notes to assumption of going concern) .......................................................................................................... 11(Notes on significant changes in shareholders' equity) .................................................................................... 11(Application of an accounting treatment specific to the preparation of the quarterly consolidated
financial statements) ........................................................................................................................................ 11(Changes in accounting policy) ....................................................................................................................... 11(Additional information) .................................................................................................................................. 12(Segment information) ..................................................................................................................................... 12(Significant subsequent events) ....................................................................................................................... 14– 1 –1. Qualitative information on quarterly financial results(1) Explanation of operating results
Forward-looking statements in the document are based on the judgment of the Company Group as of the end of the second
quarter of the current consolidated fiscal year.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020; hereinafter referred to as the"Revenue Recognition Accounting Standard") has been applied since the beginning of the first quarter of the current
consolidated fiscal year, and compared to the previous accounting method, net sales for the second quarter of the current
consolidated fiscal year increased by 103 million yen. The impact on gross profit, operating income, ordinary income, andprofit before income taxes is immaterial. For details, please refer to "2. Quarterly consolidated financial statements and major
notes, (4) Notes to the quarterly consolidated financial statements (Changes in accounting policy)."
Year-on-year comparisons in the document refer to the results for the same period of the previous year before the application of
the Revenue Recognition Accounting Standard and other accounting standards.
[Outline of the first six months of the fiscal year]
During the consolidated cumulative second quarter for the fiscal year ending December 31, 2022, while the global economy
moved toward normalization of economic activities due to the removal of regulations as a result of policy shifting to withcoronavirus in various countries, progression of inflation led to a sharp rise in prices of raw materials and fuels worldwide.
Furthermore, the rising geopolitical risks stemming from the situation in Ukraine have spurred food prices to soar, andcombined with the impact of the Shanghai lockdown, supply chain issues are still muddled.
Under such circumstances, the Company Group reacknowledged its mission as a food distributer and has been making efforts
to steadily supply goods while ensuring employee safety. The main businesses of the Company Group are the Asian Food
Global Business that distributes Asian food products and ingredients such as Japanese food around the world with a focus on
North America, as well as in Europe, China, South East Asia, Australia, etc., and the Agricultural & Seafood Products Trading
Business that distributes fruits and vegetables, fishery products, etc. in domestic markets, as well as overseas markets throughexports and offshore trading. In addition, the Company Group engages in business that distributes foreign brand foods,
seasonal goods planned and developed by the Company Group, and character goods to imported food stores, daily sundry
shops, etc. in Japan, and in business that manufactures and distributes natural supplements. Also, the Company Group is
expanding its business in new areas where the "food" and different domains, such as "healthcare," converge, with the aim to
evolve into a company that uncover and provide solutions for various challenges facing the food industry.
As for the Asian Food Global Business, the Company Group has been actively promoting initiatives to achieve sustainable andstable incomes from the North America region and an expansion of the business platform in regions outside of North America
as one of our growth strategies. In the Agricultural & Seafood Products Trading Business, the Company Group has beenworking to expand sales to its mainstay wholesale markets, mass retailers, home-meal replacement industries, and restaurant
chains, etc., while also developing overseas distribution routes, including export of domestic fruits and vegetables, offshore
trading, and the wholesale business in China.
As a result, with respect to the financial results for this consolidated cumulative second quarter, the Company had net sales of
130,742 million yen (30.9% increase year-on-year), operating income of 6,051 million yen (84.7% increase year-on-year),ordinary income of 6,441 million yen (93.2% increase year-on-year), and profit attributable to owners of parent of 4,504
million yen (74.1% 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.
Effective from the first quarter of the current consolidated fiscal year, the Company has changed the classification method ofbusiness segments to be indicated as reporting segments, and comparisons and analysis for the second quarter of the current
consolidated fiscal year are based on the classification after the change.
[Outline of operating results by segment](i) Asian Food Global BusinessIn the Asian Food Global Business, for this consolidated cumulative second quarter, the Company had net sales of100,426 million yen (37.4% increase year-on-year) and operating income of 6,560 million yen (94.8% increase year-onyear).
In the North American region, sales to both restaurant and grocery stores remained strong as COVID-19-related
regulations were lifted and the region recovered to its pre-pandemic normality. In addition to a recovery in demand, efforts
to appropriately pass on overall cost increases (manufacturers' selling prices, ocean freight, and other logistics expenses)
resulting from inflation and other factors contributed to the year-on-year increase in net sales. Besides, the rapid– 2 –depreciation of the yen boosted net sales in yen terms (the yen exchange rate for the cumulative second quarter of thecurrent fiscal year was 122.89 yen, versus 107.69 yen in the same period of the previous year).
As for income, the cost of goods sold and overhead expenses continued to rise, but the tight supply-demand situation
remained due to delays in improving logistics and inventory conditions, and efforts to appropriately pass on prices, asmentioned above, helped to maintain a high profit margin. While the market as a whole continued to experience supply
shortages, the Company Group was able to maintain a relatively stable supply of products and service level byimplementing group-wide, well-organized inventory securing and personnel measures. As a result, the Company achieved
a significant increase in both net sales and income during this consolidated cumulative second quarter compared to thesame period of the previous year, when it was still under the strong impact of regulations related to COVID-19.
In regions outside of North America, in Europe, the number of newly infected cases remained high, similar to North
America, but net sales achieved a steady recovery as economic activities were promoted along with the easing of COVID19-related regulations. In the Asia and Oceania region, net sales declined in the first half of the period due to tightened
regulations brought on by the spread of a new variant and shortages of products due to a deteriorating supply chain, but
net sales recovered steadily in the second half as regulations were eased and supply shortages began to abate. Despite
higher costs due to soaring raw material and ocean freight, losses on disposal due to logistics disruptions, and higher
overhead expenses, mainly fuel and labor costs, the Company achieved year-on-year increases in both net sales andincome.
(ii) Agricultural & Seafood Products Trading BusinessIn the Agricultural & Seafood Products Trading Business, for this consolidated cumulative second quarter, the Company
had net sales of 28,630 million yen (13.1% increase year-on-year) and operating losses of 138 million yen (operating
income of 188 million yen in the same period of the previous year).
As for imported fruits, our main product, inflation in the country of origin, soaring ocean freight, and disruptions in arrival
shipping schedules increased logistics-related costs, while the rapid depreciation of the yen reduced the pricecompetitiveness against domestically-produced fruits and vegetables. Besides, the Company struggled to secure sales inthe domestic market in the face of the trend among consumers to reduce the frequency and amount of fruit purchases amid
the continuing price hikes of daily necessities in general. Nevertheless, the segment as a whole posted a year-on-yearincrease in net sales thanks to the contribution of making Ban Choon Marketing Pte. Ltd., a major fruit and vegetablewholesaler in Singapore, a consolidated subsidiary in January of this year.
As for income, income from imported fruits, a core product, declined significantly due to the aforementioned soaring costs
and frequent quality deterioration caused by the delayed arrival of container ships. Besides, despite our efforts toimplement various measures such as price pass-through to cope with soaring costs, the aforementioned businessenvironment also had a negative impact on delivery and forced us to choose sales measures that prioritize delivery in order
to avoid inventory backlogs, resulting in a year-on-year decrease in income.
(iii) Other businesses
In other businesses, for this consolidated cumulative second quarter, the Company had net sales of 1,685 million yen(11.5% increase year-on-year) and operating losses of 119 million yen (operating losses of 2 million yen in the same
period of the previous year).
In the mainstay imported foods business, net sales and income grew steadily in the first half thanks to the success of the
Valentine's Day event, the biggest sales event of the year, but in the second half, both net sales and income declined due toa slowdown in sales to the supermarkets, our main customer, caused by price hikes of daily necessities in general, and the
sharp depreciation of the yen combined with price increases of raw materials.
In the supplement business, both net sales and income grew steadily due to the introduction of new products andexpansion of the e-commerce business. On the other hand, for the other businesses as a whole, the development of new
businesses in the domestic market, such as the expansion of a ready-made meal support business in collaboration withwell-known restaurants and a food supply business catering to post-operative and post-acute care patients, resulted in priorselling, general and administrative expenses related to these new businesses, which led to a year-on-year increase in net
sales and decrease in income.

– 3 –(2) Explanation of financial position
1. Assets, liabilities and net assets(Assets)
Total assets as of June 30, 2022 stood at 173,984 million yen, an increase of 32,214 million yen compared to December 31,
2021, and was mainly attributable to the following.
Total current assets as of June 30, 2022 amounted to 142,892 million yen, an increase of 18,154 million yen compared to
December 31, 2021. The increase in total current assets was due to an increase of 17,857 million yen in inventories and anincrease of 6,503 million yen in notes and accounts receivable—trade, despite a decrease of 7,398 million yen in cash anddeposits.
Total non-current assets as of June 30, 2022 amounted to 31,092 million yen, an increase of 14,060 million yen compared
to December 31, 2021. The increase in total non-current assets was due to an increase of 11,122 million yen in leased
assets, net and an increase of 1,770 million yen in goodwill.
(Liabilities)
Total liabilities as of June 30, 2022 stood at 100,844 million yen, an increase of 18,938 million yen compared to
December 31, 2021, and was mainly attributable to the following.
Total current liabilities as of June 30, 2022 amounted to 42,240 million yen, an increase of 5,547 million yen compared to
December 31, 2021. The increase in total current liabilities was due to an increase of 3,119 million yen in notes andaccounts payable—trade, an increase of 2,583 million yen in short-term loans payable, and an increase of 2,082 million yen
in lease obligations, despite a decrease of 2,796 million yen in the current portion of long-term loans payable.
Total non-current liabilities as of June 30, 2022 amounted to 58,603 million yen, an increase of 13,390 million yen
compared to December 31, 2021. The increase in total non-current liabilities was due to an increase of 9,498 million yen
in lease obligations and an increase of 4,192 million yen in long-term loans payable.
(Net assets)
Total net assets as of June 30, 2022 amounted to 73,139 million yen, an increase of 13,276 million yen compared to
December 31, 2021. The increase in total net assets was mainly due to an increase of 9,597 million yen in foreign currencytranslation adjustment and an increase of 3,536 million yen in retained earnings.

2. Cash flows
Cash and cash equivalents (hereinafter referred to as "Funds") for the first six months of the current consolidated fiscal year
stood at 58,248 million yen, a decrease of 7,398 million yen compared to December 31, 2021.
Cash flows for the first six months of the current consolidated fiscal year and the main factors affecting them are as follows.
(Cash flows from operating activities)
Cash flows from operating activities were negative at 8,939 million yen. This was mainly attributable to an increase of
11,686 million yen in inventories, an increase of 2,154 million yen in notes and accounts receivable—trade, and income
taxes paid of 2,055 million yen, despite profit before income taxes of 6,441 million yen.
Cash outflows increased by 9,560 million yen compared to the same period of the previous consolidated fiscal year (cashinflows of 621 million yen in the same period of the previous year). This was mainly due to an increase of 8,355 million
yen in a cash outflow for a change in inventories, a decrease of 1,370 million yen in a cash inflow for a change in notes
and accounts payable—trade, and an increase of 1,265 million yen in a cash outflow for a change in notes and accounts
receivable-trade, despite an increase of 2,932 million yen in profit before income taxes.
(Cash flows from investing activities)
Cash flows from investing activities were negative at 2,637 million yen. This was mainly attributable to a cash outflow of
2,043 million yen for the purchase of shares of subsidiaries resulting in a change in the scope of consolidation and a cash
outflow of 425 million yen for the purchase of intangible assets.
Cash outflows increased by 2,528 million yen compared to the same period of the previous consolidated fiscal year (a2,329.3% increase in cash outflows from the same period of the previous year). This was mainly due to the absence of acash inflow of 1,685 million yen for a net change in time deposits accrued in the same period of the previous year, and anincrease of 873 million yen in a cash outflow for the purchase of shares of subsidiaries resulting in a change in the scopeof consolidation.

– 4 –(Cash flows from financing activities)
Cash flows from financial activities were negative at 383 million yen. This was mainly attributable to a cash outflow of
3,292 million yen for repayments of long-term borrowings and a cash outflow of 1,004 million yen for cash dividends
paid, despite a cash inflow of 2,250 million yen for proceeds from long-term borrowings and a cash inflow of 1,917
million yen for a net change in proceeds from short-term borrowings.
Cash outflows increased by 1,110 million yen compared to the same period of the previous consolidated fiscal year (cashinflows of 727 million yen in the same period of the previous year). This was mainly due to an increase of 2,952 million
yen in a cash outflow for repayments of long-term loans payable and an increase of 716 million yen in a cash outflow for
cash dividends paid, despite an increase of 1,650 million yen in a cash inflow for a net change in short-term loans payable
and an increase of 1,000 million yen in a cash inflow for proceeds from long-term loans payable.

(3) Explanation of future forecasts such as consolidated financial results forecasts
With respect to the consolidated financial results forecasts for the full year ending December 31, 2022, net sales are expected
to recover steadily. Besides, we have considered the price competition phase as the supply-demand balance moves towardnormalization, and the impact of higher purchase costs, ocean freight, and logistics costs on profit margins.
Even though the business environment in this consolidated cumulative second quarter was as assumed as described above, we
could maintain profit levels that absorbed cost increases to a certain extent, especially in our mainstay North American region,and the effect of currency translation resulting from the weaker yen boosted our income.
There is a strong sense of uncertainty about the business environment toward the end of the current fiscal year, including
further increases in expenses and the impact of prolonged inflation on consumer trends. However, we have decided to revise
our full-year consolidated financial results forecasts, considering the first half results and the positive effect on income
resulting from the continued trend of yen's depreciation.
For details, refer to the "Notice Regarding Revision of Consolidated Earnings Forecasts for the Fiscal Year Ending December
2022, and Revision of Dividend of Surplus (Interim Dividend) and Year-End Dividend Forecasts" announced today.

– 5 –2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
FY 2021(As of December 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Inventories
Other
Allowance for doubtful accounts(Millions of yen)
Second quarter of FY 2022
(As of June 30, 2022)

65,64722,45434,4972,539(402)

58,24828,95852,355
3,738(409)

124,737

142,892

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

2,909
421
357
1,453
201

3,241
511
379
12,576231

Total property, plant and equipment

Total current assets

5,344

16,941Intangible assets
Goodwill
Software
Software in progress
Customer-related assets
Other

4,096
290
790
4,415
51

5,866
272
1,124
4,579
52

Total intangible assets

9,644

11,896

262
893
746
148
(7)

347
965
781
166
(6)

Investments and other assets
Investment securities
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

– 6 –

2,043

2,254

17,03231,092

141,769

173,984

FY 2021(As of December 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable—other
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for shareholders' benefits
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for bonuses
Provision for share-based remuneration
Net defined benefit liability
Other
Total non-current liabilities(Millions of yen)
Second quarter of FY 2022
(As of June 30, 2022)

15,269
3,395
9,221
386
3,347
363
1,279
157
15
3,256

18,389
5,978
6,424
2,469
3,889
430
893
60
4
3,701

36,69342,24040,015
1,115
1,209
135
111
131
2,494

44,207
10,614
1,279
119
273
120
1,990

45,21358,603

Total liabilities

81,906

100,844

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

2,646
6,531
47,578
(0)

2,646
6,531
51,115(0)56,75560,292

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

8
9
2,666

10
54
12,264

Total accumulated other comprehensive income

2,684

12,328422

518

Total shareholders' equity

Non-controlling interests
Total net assets
Total liabilities and net assets– 7 –59,862

73,139141,769

173,984

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
First six months ended June 30, 2022

Net sales
Cost of sales

First six months of FY 2021
(January 1, 2021
to June 30, 2021)
99,917
81,173(Millions of yen)First six months of FY 2022
(January 1, 2022
to June 30, 2022)
130,742
104,075

Gross profit

18,744

26,667

Selling, general and administrative expenses

15,46920,616

Operating income

3,275

6,051

28

61

—

42

3
181
2
29

0
494
3
49

245

651

175
0
3
5

256
—
—
4

186

261

3,334

6,441

174

—

174

—

Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodInsurance benefits received
Foreign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on equity-method investments
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses——

Profit before income taxes

Total extraordinary losses

3,509

6,441

Income taxes—current
Income taxes—deferred

1,054
(149)

1,950
(29)

905

1,921

2,604

4,520

Total income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

– 8 –

16

15

2,587

4,504

Quarterly consolidated statement of comprehensive income
First six months ended June 30, 2022

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

First six months of FY 2021
(January 1, 2021
to June 30, 2021)
2,604(Millions of yen)First six months of FY 2022
(January 1, 2022
to June 30, 2022)
4,520

6
15
2,895
18

1
45
9,600
—

13

37

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

– 9 –

2,949

9,684

5,553

14,204

5,522

14,14831

56

(3) Quarterly consolidated statement of cash flows
First six months of FY 2021
(January 1, 2021
to June 30, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Gain on revision of retirement benefit plan
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Foreign 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 directors' bonuses
Increase (decrease) in provision for shareholder
privilege program
Increase (decrease) in provision for share-based
payments
Increase (decrease) in net defined benefit liability
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes reimbursed
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
Payments for acquiring shares of subsidiaries
resulting in changes in the scope of consolidation
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
Income from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Repayments of finance lease obligations
Cash dividends paid
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
Closing balance of cash and cash equivalents– 10 –(Millions of yen)First six months of FY 2022
(January 1, 2022
to June 30, 2022)

3,509
1,039
(174)
(148)
(28)
175

6,441
1,307
—
(38)
(61)
256

0

(42)

78

242

(889)

(2,154)(3,330)(11,686)

1,812

441

552
(99)
(61)

348
(565)
(108)

(9)

(10)

31

157

(2,231)
1,610
1,836
17
(174)
(1,058)—621(12)(1,355)(6,840)62(240)(2,055)135(8,939)

(399)
(264)
—

(151)
(425)
(54)

(1,169)(2,043)

1,685
39
(108)

—
38
(2,637)

266
1,250
(339)
(0)
(161)
(287)
727
1,786
3,025
50,94153,9671,917
2,250(3,292)(0)(253)(1,004)(383)
4,561(7,398)65,64758,248

(4) Notes to the quarterly consolidated financial statements(Notes to assumption of going concern)
No relevant items.
(Notes on significant changes in shareholders' equity)
No relevant items.
(Application of an accounting treatment specific to the preparation of the quarterly consolidated financial statements)
Calculation of tax expenses
The tax expenses of some of non-Japan consolidated subsidiaries were calculated by multiplying net income before taxes by aneffective tax rate, which was estimated as the rate after the application of tax effect accounting to net income before taxes forthe fiscal year including the second quarter of the fiscal year.
(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020;
hereinafter referred to as the "Revenue Recognition Accounting Standard") from the beginning of the first quarter of the current
consolidated fiscal year, and recognized revenue at the amount expected to be received in exchange for the promised goods orservices when control of the promised goods or services has been transferred to the customer.
As a result, in the domestic sales of fresh fruits and vegetables in the Agricultural & Seafood Products Trading Business, theCompany previously recognized revenue when the selling price to the customer was determined but changed the method torecognize revenue when the customer is able to pick up the product from the designated warehouse at its discretion. In addition,center fees and other payments made to customers, which were previously treated as cost of sales are now deducted from thetransaction price.
As for the application of the Revenue Recognition Accounting Standard and other accounting standards, in accordance with thetransitional treatment prescribed in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard, thecumulative effect of retrospective application of the new accounting policy prior to the beginning of the first quarter of thecurrent consolidated fiscal year is added to or deducted from retained earnings at the beginning of the first quarter of the current
consolidated fiscal year, and the new accounting policy is applied from such beginning balance.
As a result, net sales increased by 103 million yen, and gross profit, operating income, ordinary income, and profit before
income taxes each increased by 30 million yen during the second quarter of the current consolidated fiscal year. In addition, thebalance of retained earnings at the beginning of the period increased by 36 million yen.
In accordance with the transitional treatment prescribed in Paragraph 28-15 of the "Accounting Standard for Quarterly
Financial Reporting" (ASBJ Statement No. 12, March 31, 2020), information disaggregating revenue from contracts withcustomers for the second quarter of the previous consolidated fiscal year is not presented.
(Application of Accounting Standard for Calculation of Fair Value)
The "Accounting Standard for Calculation of Fair Value" (ASBJ Statement No. 30, July 4, 2019; hereinafter referred to as "Fair
Value Calculation Accounting Standard") is applied from the beginning of the first quarter of the current consolidated fiscal
year, and in accordance with Paragraph 19 of the Fair Value Calculation Accounting Standard and transitional treatmentprescribed in Paragraph 44-2 of "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019), the
new accounting policy prescribed by the Fair Value Calculation Accounting Standard will be applied prospectively. There is no
impact on the quarterly consolidated financial statements.
(Application of U.S. GAAP ASU No. 2016-02 "Leases")
The Company and its consolidated subsidiaries in the United States have applied ASU No. 2016-02 "Leases" (hereinafterreferred to as the "Standard") effective from the first quarter of the current consolidated fiscal year. As a result, in principle, allleases of lessees are accounted for as leased assets, net and lease obligations.
As a result of the application of this standard, property, plant and equipment, current liabilities, and non-current liabilities
increased by 10,482 million yen, 2,007 million yen, and 8,979 million yen, respectively, in the consolidated balance sheet for– 11 –

the second quarter of the current consolidated fiscal year. The effect of this change on profit and loss for the second quarter ofthe current consolidated fiscal year and segment information is immaterial.
(Additional information)
Accounting estimate associated with the novel coronavirus pandemic
There have been no significant changes in the assumptions regarding the impact of the COVID-19 pandemic, which were
described under Additional information—Accounting estimate associated with the novel coronavirus pandemic in theConsolidated Financial Results for the Fiscal Year Ended December 31, 2020.
(Segment information)
I. First six months of the fiscal year (from January 1, 2021 to June 30, 2021)
1.

Information related to net sales and profits/losses by reporting segment(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products
Global BusinessTrading Business

Other business

Total

Adjustment(Note 1)

Amounts recorded in
the quarterly
consolidated
statement of income(Note 2)—
(4,416)(4,416)(277)

99,917—
99,9173,275

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit/loss

73,092
4,416
77,5093,367

25,313
025,313
188

1,511
—
1,511
(2)

99,917
4,416
104,334
3,552(Note) 1. "Adjustment" for segment profit or loss in the amount of (277) million yen includes (119) million yen for eliminationof intersegment transactions and (157) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of management guidance fees from
reporting segments, and company expenses mainly comprise general and administrative expenses not attributed toreporting segments.
2. The segment profit or loss is reconciled with the operating income on the Quarterly Consolidated Statement of Income.
2.

Information related to impairment loss of non-current assets and goodwill by reporting segment(Material fluctuation in goodwill)In the Asian Food Global Business segment, 100% of shares of Interlock Investments Limited was acquired, and the company
was made into a consolidated subsidiary. This increase in goodwill attributable to this event was 839 million yen in theprevious consolidated cumulative second quarter.
The goodwill is a provisionally calculated amount because the acquisition cost had not been fully distributed at the end of thesecond quarter of the previous consolidated fiscal year.

– 12 –

II. First six months of the fiscal year (from January 1, 2022 to June 30, 2022)
1.

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

Total

Adjustment(Note 1)

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

3,691
72,373
19,117
5,244

23,492
–
–
5,137

1,685
–
–
–

28,86972,373
19,117
10,382––––

28,86972,373
19,117
10,382

100,426

28,6301,685

130,742–

130,742

100,426
5,171
105,597
6,560

28,630028,630
(138)

1,685
–
1,685
(119)

130,742
5,171
135,914
6,301–(5,171)(5,171)(250)

130,742–
130,742
6,051(Note) 1. "Adjustment" for segment profit or loss in the amount of (250) million yen includes 0 million yen for elimination ofintersegment transactions and (250) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of management guidance fees from
reporting segments, and company expenses mainly comprise general and administrative expenses not attributed toreporting segments.
2. The segment profit or loss is reconciled with the operating income on the Quarterly Consolidated Statement of Income.
2.

Matters related to changes in reporting segments(Change in classification of reporting segment)
Effective from the first quarter of the current consolidated fiscal year, following a partial review of performance management
categories within the Company Group, the Company has revised its classification method of business segments and changedthe "World Gift Business" previously included in the "Other businesses" segment to the "Agricultural & Seafood Trading
Business."
The segment information for the second quarter of the previous consolidated fiscal year is presented based on the classification
method after the change.
(Application of account standard for revenue recognition)
As described in "Changes in accounting policy," the Company has applied the Revenue Recognition Accounting Standard andother accounting standards from the beginning of the first quarter of the current consolidated fiscal year, and has changed its
accounting method for revenue recognition, and therefore, the calculation method of profit or loss by business segment has
been changed in the same manner.
As a result of this change, compared with the previous method, net sales and segment loss of the Agricultural & Seafood
Products Trading Business increased by 103 million yen and decreased by 30 million yen, respectively, during the cumulative
second quarter of the current consolidated fiscal year.

3.

Information related to impairment loss of non-current assets and goodwill by reporting segment(Material fluctuation in goodwill)In the Agricultural & Seafood Products Trading Business segment, the Company acquired 100% shares of Ban Choon
Marketing Pte. Ltd. as its consolidated subsidiary. The increase in goodwill attributable to this event is 1,616 million yen in thisconsolidated cumulative second quarter.
The goodwill is an amount calculated provisionally because the acquisition cost is not fully distributed in this consolidated
financial second quarter.

– 13 –

(Significant subsequent events)(Borrowing of funds)
The Company has borrowed funds as follows in accordance with the resolution of Board of Directors meeting held on June15, 2022.
Outline of borrowings(1) Lenders

Five financial institutions with which we do business(2) Amount of borrowings

17 billion yen(3) Borrowing rate

Fixed interest rate(4) Borrowing dateJuly 1, 2022

(5) Borrowing period

7 to 10 years(6) Use of the funds

Operating funds(7) Collateral

Unsecured, unguaranteed– 14 –