Supplementary Material to Financial Results
Third Quarter of the Fiscal Year Ending December 2021

Nishimoto Co., Ltd.
November 12, 2021
2021 Nishimoto Wismettac Group All rights reserved.

Contents•SummaryP. 2•

Summary of Financial Results
for the Third Quarter of the Fiscal Year EndingDecember 2021

P. 3

Corporate Profile

P. 8

•

2021 Nishimoto Wismettac Group All rights reserved.

1

SummaryQ3 2021 Financial Results◆ Consumption demand continued to recover from the first half, mainly in North America and Europe. Sales and profits increased
significantly year-on-year.
Same period last year
Net sales: 124.3 billion yen

Operating income: 0.05 billion yen,Ordinary income: ▲0.2 billion yen,Current period
Net sales: 155.3 billion yen, Operating income: 5.0 billion yen, Ordinary income: 4.9 billion yen,

Net profit: 0.3 billion yen(*)
Net profit: 3.2 billion yen(*)(*) Net income attributable to owners of parent

Forecasts of Financial Results and Year-end Dividend Forecast◆ Both the forecasts of financial results and the year-end dividend forecast have not changed since the announcement of the second
quarter financial results.
Forecasts of financial results
Net sales: 200.0 billion yen

Operating income: 5.5 billion yen,

Year-end dividend forecast
Interim: 35 yen(Result),

Term end: 45 yen,

Ordinary income: 5.1 billion yen,

Net profit: 3.8 billion yen(*)(*) Net income attributable to owners of parent

Total: 80 yen➢ As previously planned, the dividend payout ratio is an important indicator, and the company aims for a consolidated dividend
payout ratio of around 30% for the full fiscal year.

The direction WMC is aiming for◆ Both existing business and new business maintain their original trajectory.
➢ Existing business: Continue to focus on rebuilding business models and improving productivity to strengthen profitability.
➢ New business: Aim to monetize derivative business from existing business and create next-generation business in new field.
◆ The medium-term business plan will be announced at a later date after scrutinizing the transient factors in the business performancefor the current fiscal year and the impact of possible changes in the external environment in preparation for the post-pandemic futureon the business performance.

2021 Nishimoto Wismettac Group All rights reserved.

2

Summary of Financial Results for the Third Quarter of
the Fiscal Year Ending December 2021

2021 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for Q3 FYE 12/2021
Demand continued to recover from the first half, mainly in Europe and the United States,
contributing to a significant increase in sales. In terms of profits, we continued to workon various measures and were able to maintain an increase in profits.
◆ In the same period of the previous year, sales to restaurants decreased significantly due to regulations such as lockdown due to theCOVID-19 pandemic. As for Q3, consolidated cumulative period, although some impacts still remained, it recovered steadily,resulting in a significant increase of 24.9% year-on-year.

◆ In terms of profits, in addition to the increase in profits due to the revenue growth during Q3, there was a reversal of the provision ofallowance for doubtful accounts and loss on valuation of inventories. Furthermore, the implementation of various measures torecover profits, which we have been working on since the first half of the year, was also successful, resulting in a significant increasein profits.
⚫ In the same period of the previous year, the provision of allowance for doubtful accounts and loss on valuation of inventories(total of about 1.7 billion yen) were recorded as a response to the COVID-19 pandemic.
(Unit: billions of yen)FYE December 2020

FYE December 2021

Q3 Results

Q3 Results

Jul.-Sep.

Operating results

Changes
year-on-year

Jul.-Sep

Net sales

124.3

44.5

155.3

55.4

+24.9%

Gross profit

20.6

8.0

29.2

10.4

+41.7%

Operating income(Excluding strategic expenses)

1.5

1.76.92.3+359.9%

Operating income or loss(△)

0.0

1.2

5.0

1.7-

Ordinary income or loss(△)

▲0.2

1.2

4.9

1.6-

0.3

1.3

3.2

0.6+788.6%

107.59 yen

108.50 yen

0.91 yen

25.36

225.30+788.4%

Net income or loss(△)
attributable to owners of parent
Yen/Dollar exchange rate
(Average rate during the period)

Quarterly net income or loss(△) per share2021 Nishimoto Wismettac Group All rights reserved.

4

Operating Results by Segment for Q3 FYE 12/2021
The Asian Food Global Business has recovered to the level of 2019 before the impact of
the COVID-19 pandemic. In the Agricultural & Seafood Products Trading Business, sales
and profits declined due to sluggish demand for imported fruits and vegetables.
Asian Food Global Business (hereinafter called “GAF”)◆ In the mainstay region, North America, sales to restaurants have recovered and expanded due to deregulation and rebound in
consumption demand accompanying the progress of vaccination. In addition, sales to grocery stores have remained strong. Sales
also recovered steadily in regions other than North America, with sales increasing by 37.3% year-on-year.
• In North America: + 23.5% year-on-year, recovering above the level of 2019 before the spread of the COVID-19 pandemic.
• Regions other than North America: + 91.4% year-on-year. (+ 15.0% excluding companies acquired during the period.)
Agricultural & Seafood Products Trading Business◆ Sales of imported fruits and vegetables, our main product, decreased by 1.3.% due to sluggish demand due to a prolonged state of
emergency and competition with low-priced domestic products.
◆ In terms of overall profits, it was in the red. Global logistics disruptions such as container delays have led to product inventory
retention and quality degradation, resulting in price collapse.
(Unit: billions of yen)

Business segments

FYE December 2020

FYE December 2021

Q3 Results

Q3 Results

Jun.-Sep.
GAF

Agricultural & Seafood
Products Trading Business
Other
Adjustment
TotalChanges
year-on-year

Jun.-Sep

Net sales

84.7

31.5

116.3

43.2

+37.3%

Operating income or loss(△)

▲0.1

0.9

5.6

2.2

-Net sales

37.1

12.2

36.6

11.4

▲1.3%

Operating income or loss(△)

0.5

0.5

▲0.0

▲0.2-Net sales

2.50.6

2.3

0.7

▲6.4%

Operating income or loss(△)

0.0

▲0.0

▲0.0

▲0.0------

Operating loss(△)

▲0.4

▲0.1

▲0.4

▲0.2

-

Net sales

124.3

44.5

155.3

55.4

+24.9%

0.0

1.2

5.0

1.7

-

Net sales

Operating income

2021 Nishimoto Wismettac Group All rights reserved.

5

Consolidated Balance Sheet (Summary)(Unit: billions of yen)

End of 12/2020

End of09/2021

Amount/rate ofincrease(decrease)

Main reasonsfor changes

Current assets

98.1

107.8

+9.7

Cash and deposits +1.5, Trade accounts receivable+2.2, Inventories +5.6

Non-current assets

15.4

16.8

+1.3

Lease asset(net increase) +0.6
Goodwill +0.6

Total assets

113.6

124.7

+11.1

Current liabilities

21.4

27.2

+5.7

Accounts payable-trade +2.0, Short-term loans
payable +0.1, Current portion of long-term loans
payable +2.8

Non-current liabilities

41.2

40.7

▲0.4

Long-term loans payable(net decrease) ▲0.4

Total liabilities

62.7

68.0

+5.2

Total net assets

50.8

56.7

+5.8

Total liabilities and netassets

113.6

124.7

+11.1

Shareholders’ equity ratio

44.4%

45.1％

+0.7 pt

Current ratio

456.5%

396.1％▲60.4 pt

2021 Nishimoto Wismettac Group All rights reserved.

6

(Ref.) Sales Composition Ratio by Region* Sales to external customers
Unit: billions of yen● Consolidated sales (Entire Group)
172.0

182.2

200.0 (Full-year forecast)
182.6
168.4

158.3

155.3 (Q3 Cumulative)

OthersEUNAJapan

FYE 12/2016

FYE 12/2017

FYE 12/2018

FYE 12/2019

FYE 12/2020

Q3 FYE 12/2021

WMC made SSP(Germany 2020/2), C3C(France 2020/7) intoconsolidated subsidiaries.

2021 Nishimoto Wismettac Group All rights reserved.

WMC made Sco-Fro
Group (Scotland 2021/2)
into consolidated asubsidiary.

7Corporate Profile◆ Two spheres symbolizing the Earth and Globalism⚫ Red is used to show Innovation, green represents
Nature⚫ Expresses the Company’s “lasting commitment tocreating healthier and richer lives through food”◆ Incorporates the letters “W” “M” and “C” from theCompany name2021 Nishimoto Wismettac Group All rights reserved.

< Wisdom >(Western knowledge)< Metta >(Eastern knowledge)(Metta means kindness or empathy in Pali, anancient Indian language)< Creativity > (Ability to create value)

Nishimoto Wismettac: Corporate Profile
Founded in 1912, Nishimoto Wismettac has grown into a global company supplying
food ingredients and food products to markets worldwide
Company nameNishimoto Co., Ltd.

Head office

15th Floor, Nihonbashi Muromachi Mitsui Tower, 3-2-1, Nihonbashi Muromachi, Chuo-ku,
Tokyo

EstablishedMay 1912

Representative directors

Yoshiro Susaki, Chairman & President CEO

Number of employees

1,768(including 1,455 in the Asian Food Global Business) [As of December 31, 2020]◆ Development and sales of Asian food worldwide

Business◆ Imports and sales of fruit, vegetables and related processed products, and supply of foodingredients to food manufacturers and the restaurant sector

Subsidiaries and affiliates
Business sites

21 subsidiaries, 1 affiliate

48 worldwide (including 24 in North America)
Locations in Japan, the U.S., Canada, Singapore, Australia, Netherlands, U.K., Germany,France, China, Hong Kong, Thailand, Vietnam and South Korea

Consolidated net sales

168.4 billion yen (FY ended December 2020)

Consolidated ordinaryincome

1.7 billion yen (FY ended December 2020)

Shareholders’ equity ratio
2021 Nishimoto Wismettac Group All rights reserved.

* Overseas sales ratio 67.8%

44.4% (FY ended December 2020)
9Nishimoto Wismettac: Domestic and Overseas Business Sites
The Company Group maintains 48 locations around the world in North America, Europe,Australia, and Asia and is developing business globally. Among these, North America(the US and Canada) has 24 locations, which account for the majority of sales.
13 ・COMPTOIRS DES 3 CAPS
| ・COMPTOIRS OCEANIQUES
FISH
15 ・TROPIC(made into a subsidiary in July 2020)
Konsumgüter TRADE & CONSULT GmbH
12 SSP(made into a subsidiary in February 2020)

Calgary OfficeDenver Office

10 Wismettac Harro Foods Limited
1 Nishimoto Co., Ltd.
WF Seoul Representative Office

Wismettac Asian Foods,
4Inc. (Canada)
Las Vegas Office

2 Wismettac Foods, Inc.

Seattle Office

7 NTC Wismettac Europe B.V.
Group Limited
17 Sco-Fro(made into a subsidiary in February 2021)

Sacramento Office

Wismettac Foods
8Shanghai Co., Ltd.
9 Shanghai IPM Co., Ltd.

San Francisco Office

311 Nippon Foods Co., Ltd.
16 SIM BA TRADING JTC
WF Ho Chi Minh Representative Office

WF Bangkok Representative Office
5 NTC Wismettac Singapore Pte. Ltd.

Wismettac Asian Foods,Inc.

Hawaii Office

San Diego Office

WF Naha Representative Office

Toronto OfficeMontreal Office
Boston Office
New York Office
Washington, DC Office
Ohio OfficeMiami Office

WF Kobe Office
WF Kobe Branch

Chicago Office

Arizona OfficeOrlando OfficeAtlanta Office

Houston Office
Dallas Office
NTC Wismettac Australia Brisbane Office

6 NTC Wismettac Australia Pty Ltd.
NTC Wismettac Australia Perth Office

NTC Wismettac Australia Melbourne Office“WF” shown in the figure is an abbreviation for “Wismettac Foods”

2021 Nishimoto Wismettac Group All rights reserved.

10

Approaches of New Business Concepts◆ We are aiming to be a corporate group that expands globally by continuously creating

new business (business models, products) that combine Needs/Issues and solutions inareas where 'Food' and other fields intersect.
Wismettac's Business Domains
1. Food: Make a leap forward based on
existing business2. The area where Food and Medical(Health Care) intersect
3. The area where Food and Eco intersect
4. The area where Food and New Lifestyleintersect

Eco

3This area that will change drastically with theCOVID-19 pandemic - evolution of how to supplyfood.

1Food
5Informatics

Food

Medical
2 2 (Health Care)

5. Food Informatics

Global Migration

4➢ Collaborative development of the most advanced
startup business model in 5 Regions of the world(NA, EU, China, Japan, SE Asia) throughalliances and joint ventures with other companies.
NANew
Lifestyle

China

GlobalMigration
SEAsiaEUJapan2021 Nishimoto Wismettac Group All rights reserved.

11

Breakdown of Strategic Investment
Continue investing to strengthen the profitability of existing business and create businessin new fields. While the impact of the COVID-19 pandemic remains, some measures are
steadily being promoted, although progress is slower than originally planned.
Amount(including expenses, billions of yen)
MeasuresAims

1of new business in theExpand business ◆ Creationintersection of the fields of food,fields
healthcare, ecosystem, Food2

3

informatics, and new lifestyleStrengthening
interregional
cooperation

2020
Results

Forecast

0.3

0.8

2021
Q3 Results

0.4◆ Diversification of business portfolio

0.8◆ Strengthening organizational
management capabilities in each region◆ Securing mainstream sales channels andbuilding business strategies fordeepening transactions◆ Establishment of an overseas
regional management team andenhancement of its function◆ Product development andmainstream sales channel
development in Europe and China

1.0◆ Enhancement of the productdevelopment division

0.10.20.1◆ Further expansion of the private brandproduct lineup◆ Development of health-oriented
products

0.00.50.0◆ Reduction of SG&A expenses andlogistics expenses leveraging DX androbotics◆ SCM and IT infrastructure
Boostinvestments
the earnings
capacity ofexisting business◆ Organizational revitalization/streamlining(NA) and reform ofcompensation system

1.60.50.50.3◆ Stronger organizational power◆ Compensation according to company
and individual performance◆ Stronger teamwork capability throughthe introduction of internal
communication/coordination tools

0.1

0.10.1◆ Tapping growth market overseas

0.2

0.20.1◆ Restaurant operation format suitable toNew Normal

2.2

3.9

1.84

◆ Developing sales channels andstrengthening management
Expand newcapability in local markets
business derived
overseasfrom existing◆ Development of new services
businessto the restaurant industry(New Normal eating habits)

TOTAL
2021 Nishimoto Wismettac Group All rights reserved.

12Disclaimer
These materials are intended to provide financial information, management information, etc. ofNishimoto Co., Ltd. and its affiliated companies (hereinafter collectively referred to as “the Company”),
but the Company makes no representation or warranty regarding the content of these materials.
The plans, strategies, operating results forecasts, etc. of the Company in these materials may include
information on forward-looking statements, which are based on information currently available to theCompany, and include risks and uncertain elements in relation to economic trends, competition in theindustry, market demand, foreign exchange rates, taxation system, various systems, etc. Therefore,
actual operating results that will be published in the future may differ due to these elements, and theCompany does not assume any liability for any damage arising from the use of information in thesematerials. Furthermore, the Company is under no obligation to revise and publish future forecasts inthese materials based on new information or future events.
The Company pays close attention when preparing these materials; however, if there are any errors in
the information presented, falsification of data by a third party, or any failure arising from download ofdata, etc., the Company does not assume any liability for any damage caused by such actions for any
reason whatsoever. We appreciate your understanding regarding this matter.
The information in these materials is not intended to solicit investments. When any investment is
actually made, please refrain from completely relying on the information in these materials to make an
investment decision, and make the decision based on your own judgment.
[Contact]
Nishimoto Co., Ltd.
Corporate Planning Dept.
TEL: 03-6870-2015

2021 Nishimoto Wismettac Group All rights reserved.