September 29, 2017
To whom it may concern:
Company name: Nishimoto Co., Ltd.
Representative: Takayuki Kanai, President(Code No.: 9260 First Section of the Tokyo Stock Exchange)
Contact: Atsuhiko Kimura, Director and CFO(Phone: 03-6870-2015)

Notification on Financial Results and Related Information of Nishimoto Co., Ltd.
Associated with the Listing of its Stock on the First Section of the Tokyo Stock Exchange
Nishimoto Co., Ltd. (the “Company”) hereby announces that it was listed on the First Sectionof the Tokyo Stock Exchange effective today, September 29, 2017. We appreciate yourcontinued support and guidance.
The Nishimoto Wismettac Group’s (the “Group”) earnings forecasts for the fiscal year fromJanuary 1 to December 31, 2017 are as follows and the latest financial information, etc. isstated in the attachment.
【Consolidated】（millions of yen, %）Fiscal year ending December
31, 2017 (Forecast)Fiscal year
Item

N e t
s a l e s
Operating income
Ordinary income
Profit attributableowners of parent

First half of the
fiscal year ending
December 31, 2017
(Actual)Fiscal year ended
December 31, 2016
(Actual)Ratio
againstnet sales

Changefrom theprevious
fiscalyear

Ratio
againstnet sales

Ratio against
net sales

169,434
6,835

100.0
4.0

7.0
△6.7

86,646
3,260

100.0
3.8

158,338
7,329

100.0
4.6

6,306

3.7

△8.9

3,053

3.5

6,922

4.4

3,349

2.0

17.6

1,448

1.7

2,847

1.8

to

Net income per share

258.12 yen

115. 95 yen

227.95 yen

Dividend per share

To be determined

0.00 yen

2.00 yen (0.40 yen)

Notes:1. Net income per share for the fiscal year ended December 31, 2016 (actual) and the first halfof the fiscal year ending December 31, 2017 (actual) was calculated based on the average
number of outstanding shares during the period. Net income per share for the fiscal year
ending December 31, 2017 (forecast) was calculated based on the estimated average numberof outstanding shares during the period, which includes the number of new shares to be issued
by way of public offering (1,130,000 shares) and the number of treasury shares to be disposed(720,000 shares), but the maximum of 555,000 shares to be issued through third-party
allotment in connection with the secondary offering by way of over-allotment were not taken
into consideration.
2. On June 1, 2017, the Company carried out a five-for-one stock split for its common stock.
Net income per share as shown above was calculated on the assumption that the stock split
was implemented at the beginning of the fiscal year ended December 31, 2016. Additionally, a
dividend per share which was calculated on the assumption that the stock split was
implemented at the beginning of the fiscal year ended December 31, 2016 (actual) is shown inparentheses for reference purposes.
3. The Company places in its management a high priority on returning profits to shareholders.
At this time, it plans to pay a dividend for the fiscal year ending December 31, 2017
(forecast), however, specific details of the dividend have not been determined.

[Assumptions for Earnings Forecasts (consolidated) for the Fiscal Year Ending
December 31, 2017]
1. Forecasts for the entire company
The Group consists of the Company, 11 consolidated subsidiaries and two equity-method
affiliates. Its main businesses are the Asian Food Global Business which engages in sales ofAsian foods and ingredients including Japanese foods overseas mainly in North America, and
the Agricultural and Seafood Products Trading Business which engages in domestic sales,
exports and off-shore trading of general fruits and vegetables (fruits, vegetables and otherprocessed goods) as well as domestic sales of fishery products.
(Asian Food Global Business)
The Asian Food Global Business engages in sales of Asian foods and ingredients including
Japanese foods to restaurants, grocery stores, etc. overseas mainly in North America.

Additionally, an integrated process from merchandise procurement, import customs clearance
to inventory management and delivery is operated in house.
While keeping pace with the expansion of markets against the background of the Japanesefood boom globally, the Group converted two firms in the U.K. and Hong Kong into
consolidated subsidiaries through M&A during the fiscal year ended December 31, 2016, andduring the fiscal year ending December 31, 2017 another Hong Kong firm also became aconsolidated subsidiary in the same way. In addition, during the same fiscal year, two firms inGermany and France were converted into affiliate companies through investments. As a resultof these additions, the Group has built a global network which includes 23 locations in North
America and 11 locations in other areas.
(Agricultural and Seafood Products Trading Business)
The Agricultural and Seafood Products Trading Business engages in the import and wholesaleof fresh fruits and vegetables, frozen and processed fruits and vegetables, marine products,
etc. to domestic wholesale markets, mass merchandisers, restaurant and home meal
replacement industries, food manufacturers, etc. In addition, it engages in the export and offshore trading, etc. of fruits and vegetables.
While the domestic import market remains at the same level, we have been making efforts toboost sales not only via wholesale markets, which have been our main sales channel, but also
via other sales channels (such as mass merchandisers, restaurant and home meal replacement
industries). Additionally, we have been working to expand overseas sales channels (exports ofdomestic fruits and vegetables, off-shore trading of fruits and vegetables) by taking advantageof the network which the Asian Food Global Business has had and also to sell fisheryproducts and agricultural products domestically by using procurement resources which the
Asian Food Global Business has utilized.
In the fiscal year ended December 31, 2016, net sales in the Asian Food Global Businessaccounted for 67.0% of the total net sales, 88.0% of which were generated in North America(Wismettac Asian Foods, Inc.).
As just described, sales in North America account for a high percentage of the Group’s sales.
Therefore, substantial fluctuations in exchange rates can affect the Group’s performance. The
initial plan for the year ending December 31, 2017 was developed based on a rate of 100 yen
to the U.S. dollar (the exchange rate used for the previous fiscal year was 108.84 yen to the
U.S. dollar).
Under these circumstances, overall performance during the first half of the fiscal year ending
December 31, 2017 remained solid. After taking into consideration the results for that period

and revisions made to forecasts for the third and fourth quarters beginning in July based on
those results, we expect net sales of 169,434 million yen (up 7.0% year-on-year), operating
income of 6,835 million yen (down 6.7% year-on-year), ordinary income of 6,306 million yen(down 8.9% year-on-year) and profit attributable to owners of parent of 3,349 million yen (up17.6% year-on-year) for the full year.
The Group calculates earnings forecasts for every segment based on information collected tothe highest extent possible by using the buildup method. In addition, while an exchange rateof 112.37 yen to the U.S. dollar (average exchange rate during the period) was used for the
results for the first half under review, an exchange rate of 100 yen to the U.S. dollar, which
had been used for the initial plan, was used for forecasts for the third quarter and onward.

2. Assumptions for individual segments[Net sales]
Net sales for the first half under review totaled 86,646 million yen. In the Asian Food Global
Business, which is the Company’s main business, sales in North America remained robust andit recorded 58,002 million yen, exceeding the level during the same period a year ago. In the
Agricultural and Seafood Products Trading Business, net sales rose to 26,994 million yen
compared with the same period a year earlier due to the increase of sales to massmerchandisers, restaurant and home meal replacement industries, food manufacturers, etc.
However, the result fell short of the initial plan since sales volume was lower than expected
due to a significant rise in the cost of staple products such as citrus and avocado.
Based on the above, we expect net sales for the full fiscal year will be 169,434 million yen(up 7.0% year-on-year).
(Asian Food Global Business)
In this segment, sales estimates are calculated for each company in the Group on a local
currency basis by adding the potential increase in sales value per customer which is expectedfrom the underlying demand for staple products to actual orders which were received bycustomer and by month. Plans are developed by adding estimated sales (estimated sales which
are reasonably expected based on actual results from past fiscal years) from new customers to
the accumulation of said sales estimates. Additionally, for areas other than North America theimpact of the increase of customers due to M&A implemented during the previous fiscal year
is taken into account.

Under the circumstances, by accumulating sales estimates by customer based on the actual
sales results for the fiscal year ended December 31, 2016 and first half of the fiscal year
ending December 31, 2017, we expect that net sales will be 112,916 million yen (up 6.4%
year-on-year) as net sales in each region will likely exceed the previous fiscal year’s levels.
In North America, net sales for the first half under review increased to 50,079 million yen
compared with the same period a year ago due to an increase in sales value per customer aswell as solid sales to new customers. By continuing to increase sales value per customer andfurther promoting the development of new customers during the third quarter and onward,
sales are expected to increase on a local currency basis. However, due to the impact of
currency exchange rates (while the average exchange rate during the first half under review
was 112.37 yen to the U.S. dollar, the rate is left unchanged from the initial plan at 100 yen to
the U.S. dollar for the third quarter and onward), we expect net sales of 46,554 million yen for
the third quarter and onward and 96,633 million yen for the full year on a yen basis, which
exceeds the previous fiscal year’s level.
In areas other than North America, sales value (sales volume) per customer rose, newcustomer bases were developed and customers increased due to M&A implemented during theprevious fiscal year. Therefore, we expect net sales of 16,284 million yen for the full year,
which is higher than the previous year’s level.
(Agricultural and Seafood Products Trading Business)
In this segment, sales estimates are calculated based on past results by merchandise, sales
channel and month, and plans are developed by accumulating these sales estimates.
Net sales for the first half under review were 26,994 million yen. Although they were slightly
higher than the level during the same period a year ago due to increased sales to massmerchandisers, restaurant and home meal replacement industries, food manufacturers, etc.,
they slightly fell short of the initial plan partially because of higher costs for staple
merchandise such as citrus and avocado as explained earlier. Under the circumstances,estimated sales volume and sales estimates by merchandise and sales channel wererecalculated for the third quarter and onward. In the third quarter, because it is expected thatsales prices will undergo further adjustment and costs for staple merchandise will decline,
sales volume will likely recover to the initially planned level, sales via main sales channels
will likely increase and net sales will likely exceed the level during the same period a year
ago. As a result, we expect net sales of 52,218 million yen (up 8.1 % year-on-year) for the full
fiscal year. Furthermore, there is a seasonal variation: net sales of imported fresh fruits andvegetables, which are staple goods, increase between April and June, which is the second

quarter, as it is the peak season for them while net sales of imported fruits decrease between
September and November as this period is the peak season for domestic fruits.
[Cost of sales]
Cost of sales for the first half under review was 71,949 million yen. In the Asian Food Global
Business, the cost of sales remained at almost the same level as the previous fiscal year whilein the Agricultural and Marine Products Trading Business the costs for sales of citrus andavocado were higher than the previous fiscal year as described earlier, which boosted overall
costs.
Cost of sales for the third quarter and onward is expected to increase at almost the same rate
as net sales to 68,183 million yen. In the Asian Food Global Business, we expect that the costto sales ratio will continue to remain at the same level as the previous fiscal year. On the other
hand, in the Agricultural and Marine Products Trading Business costs are expected to decrease
as described above to almost the same level as the previous fiscal year.
As a result, we expect cost of sales of 140,132 million yen (up 7.5% year-on-year) for the full
year.
[Gross profit]
Gross profit for the first half under review was 14,696 million yen. We expect that gross profit
during the third quarter and onward will be 14,605 million yen. Based on the above, grossprofit for the full year is expected to be 29,302 million yen (up 4.9% year-on-year).
[Selling, general and administrative expenses]
Selling, general and administrative expenses for the first half under review totaled 11,436
million yen, which were almost in line with the initial plan. Therefore, by reflecting theresults for the first half under review, we expect selling, general and administrative expenses
of 22,467 million yen (up 9.0% year-on-year) for the full year. Selling, general andadministrative expenses rose compared with the previous year mainly because of an increasein personnel expenses due to personnel recruitment in order to reinforce the Company’s
distribution department, etc. in North America, added personnel expenses, etc. following theconversion of companies into consolidated subsidiaries through M&A during the previous
fiscal year including Harro Foods Limited (a U.K. firm which was added to consolidated
results starting in April 2016) and Nippon Foods Co., Ltd. (a Hong Kong firm which wasadded to consolidated results starting in January 2017) as well as higher selling charges due toincreased net sales.

With regard to personnel recruitment in North America, we regard it as an advance investment
in order to strengthen our business foundations while anticipating the expansion of the scopeof our business in the future. In addition, in response to Obamacare and rises in wages in the
U.S., part-time employees were hired full-time as a measure to further reinforce the backoffice operations.
[Operating income]Operating income for the first half under review totaled 3,260 million yen. We expect
operating income of 3,575 million yen for the third quarter and onward and 6,835 million yen(down 6.7% year-on-year) for the full year. Gross profit is expected to increase 4.9%
compared with the previous year, however, operating income will likely be lower than theprevious year as selling, general and administrative expenses are expected to rise by 9.0%
from the previous year.
(Asian Food Global Business)
In this segment, operating income for the first half under review totaled 3,104 million yen. We
expect operating income of 3,347 million yen for the third quarter and onward. As a result,operating income of 6,451 million yen (up 6.4% year-on-year) is expected for the full year.
(Agricultural and Seafood Products Trading Business)
Operating income for the first half under review totaled 159 million yen, which was slightly
lower than initial plans, as the cost of staple merchandise was significantly higher than what
had been initially planned. As for the third quarter and onward, operating income of 673
million yen is expected as sales prices will be adjusted further, the cost of staple merchandise
will decline and high-margin merchandise will be added. As stated above, by incorporating
the forecast for the third quarter and onward to the results for the first half under review, we
expect operating income of 833 million yen (down 23.0% year-on-year) for the full year.
[Ordinary income]Ordinary income for the first half under review totaled 3,053 million yen. We expect ordinary
income of 3,253 million yen for the third quarter and onward and 6,306 million yen (down
8.9% year-on-year) for the full year.
Although foreign exchange losses or gains were not taken into account when the initial plan
was developed, as a result of reviews based on the results for the first half under review, we
incorporated a foreign exchange loss of 200 million yen and expect ordinary income of 6,306
million yen (down 8.9% year-on-year) for the full year. Foreign exchange losses were mainlydue to the re-evaluation of foreign currency in our possession as well as foreign-currencydenominated debts and loans following exchange rate fluctuations.
[Profit attributable to owners of parent]
Profit attributable to owners of parent for the first half under review totaled 1,448 million yen.
We expect profit attributable to owners of parent of 1,900 million yen for the third quarter andonward and 3,349 million yen (up 17.6% year-on-year) for the full year.
Although extraordinary losses were not taken into account when the initial plan wasdeveloped, after extraordinary losses of 517 million yen were posted for the first half underreview we expect that profit attributable to owners of parent will be 3,349 million yen (up17.6% year-on-year) for the full year. Extraordinary losses were mainly due to an impairment
loss of 517 million yen following the re-evaluation of customer-related assets of Nippon
Foods Co., Ltd., which became a consolidated subsidiary during the previous fiscal year.

Consolidated Financial Results for the First Half of the Fiscal Year Ending December 31, 2017
(JP GAAP`)

September 29, 2017
Listed company: Nishimoto Co., Ltd.

Listing stock exchange: Tokyo

Code No.: 9260 URL: http://www.wismettac.com/
Representative: (title) President(Name) Takayuki Kanai

Inquiry contact: (title) Director and CFO(Name) Atsuhiko Kimura(Phone) 03-6870-2015

Scheduled date of filing of the first half report: start: -Scheduled date of dividend payment

Preparation of financial results supplementary briefing material: Not applicable
Holding of first half financial results briefing meeting: Not applicable(Any amount less than 1 million yen was truncated)
1. Financial results for the first half of the fiscal year ending December 31, 2017 (fromJanuary 1 to June 30, 2017)(1) Financial results (cumulative)(Percentage number denotes year-on-year change)

Net sales

Operating income

Ordinary income

Profit attributableto owners of parent

million yen％

millionyen％

millionyen％

millionyen％First half of FY ending
December 31, 2017

86,646

－

3,260

－

3,053

－

1,448

－

First half of FY ended

－

－

－

－

－

－

－

－

December 31, 2016
Note: Comprehensive income
First half of the fiscal year ending December 31, 2017: 285 million yen (-%)
First half of the fiscal year ended December 31, 2016: - million yen (-%)

Net income per share

Fully-diluted net income per share
yen

yen

First half of FY ending December 31, 2017115.95－First half of FY ended December 31, 2016－－

Notes:1. Figures for the first half of the fiscal year ended December 31, 2016 and year-on-year percentage changes are notshown since the Company did not prepare any consolidated financial statements for the period.
2. The Company conducted a five-for-one common stock split on June 1, 2017 pursuant to the resolution of a Board of
Directors meeting held on May 15, 2017. Net income per share for the first half under review was computed as if the stock
split had been done at the start of the fiscal year ending December 31, 2017.

(2) Financial position
Total assets

First half of FY ending December

Shareholders’ equity ratio

Net assets

million yen

million yen％

75,92939,25951.7

72,721

38,97953.6

31, 2017
FY ended December 31, 2016
(Reference) Shareholders’ equity
First half of the fiscal year ending December 31, 2017: 39,259 million yen
First half of the fiscal year ended December 31, 2016: 38,979 million yen

2. Dividend
Annual dividend
End offirstquarter

End ofsecondquarter

End ofthird
quarter

Period-end

yen

yen

yen

yen

yen

FY ended December 2016

－

0.00

－

2.00

2.00

FY ending December 2017

－

0.00
－

－

FY ending December 31, 2017 (Forecast)

Total

Notes: 1. Revision to dividend forecast released previously: Yes / No
2. The Company conducted a one-for-five common stock split on June 1, 2017 pursuant to the resolution of a Board of
Directors meeting held on May 15, 2017.
The Company has yet to determine any forecast on the dividend for the fiscal year ending December 31, 2017.

3. Financial results forecast for the fiscal year ending December 31, 2017 (from January 1 to
December 31, 2017)(Percentage number denotes year-on-year change)
Net sales

Operating income％

million yen

FYending169,434

7.0

million yen
6,835

Ordinary income

Profit attributable toowners of parent％

million yen

％

△6.7

6,306

△8.9

％

million yen
3,349

Net income
per share

17.6

yen
258.12

December31, 2017
Notes:
1. Revision to financial results forecast released previously: No
2. The Company conducted a one-for-five common stock split on June 1, 2017 pursuant to the resolution of a Board of
Directors meeting held on May 15, 2017. Net income per share in the forecast on the financial results for the fiscal year
ending December 31, 2017 is shown in an amount reflecting this stock split.

*Notes(1) Change to significant subsidiary during the first half under review: Not applicable(Change to specific subsidiary involving revision of the scope of consolidation)(2) Application of accounting treatment unique to the preparation of these financial
statements: Yes(3) Change to accounting policy and changed or revised display of accounting estimation(i) Change to accounting policy due to revision of accounting standards: No(ii) Change to accounting policy change other than item (i): No(iii) Change to accounting estimation: No(iv) Revised display: No

(4) Total number of shares outstanding (common stock)(i) Ending total number of shares
outstanding (including treasury shares)(ii) Ending total number of treasury shares(iii) Average total number of shares in the
period (cumulative for the first half underreview)

13,213,240
shares

December 31,
2016

June 30, 2017

720,000
shares

December 31,
2016

June 30, 201712,493,240
sharesJune 30, 2016

June 30, 201713,213,240
shares720,000 shares

12,493,240
sharesNote: The Company conducted a one-for-five common stock split on June 1, 2017 pursuant to the resolution of a Board of
Directors meeting held on May 15, 2017. The ending total number of shares outstanding, the ending total number of treasury
shares and the average total number of shares in the period were each computed as if the stock split had been done at the startof the fiscal year ended December 31, 2016.

* Although this press release is not subject to a quarterly review under the Financial
Instruments and Exchange Act, the Company completed a review procedure for consolidated
quarterly financial statements under the Act prior to issuing this press release.
* Guide on appropriate usage of financial results forecast and other notes
Statements contained in this document concerning future forecast on financial results are based on information currently
available to the Company as well as certain assumptions it deems to be reasonable. Thus, these statements are not intended
for management to promise the achievement of the forecast. Actual financial results may potentially differ markedly from theforecast due to various factors. For conditions of the assumptions in the forecast and notes to the usage of the forecast, please
see the section titled “(3) Explanation about future forecasts such as consolidated financial results forecast” under the chapter
titled “1. Qualitative information on the financial results for the first half” on page 3 of the attachment.

Contents of Attachment
1. Qualitative information on the financial results for the first half・・・・・・・・・・2(1) Business results highlights・・・・・・・・・・・・・・・・・・・・・・・2(2) Financial position highlights・・・・・・・・・・・・・・・・・・・・・・・2(3) Explanation about future forecasts such as consolidated financial results forecast・・3
2. Matters on summary information (notes)・・・・・・・・・・・・・・・・・・・・4(1) Change to significant subsidiaries during the first half under review・・・・・・・4(2) Application of accounting treatment unique to the preparation of these financial
statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・4(3) Change to accounting policies and changed or revised display of accounting
estimation・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・4(4) Additional information・・・・・・・・・・・・・・・・・・・・・・・・・4
3. Financial statements for the first half・・・・・・・・・・・・・・・・・・・・・5(1) Balance sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・5(2) Statement of income and statement of comprehensive income・・・・・・・・・・7(3) Statement of cash flows ・・・・・・・・・・・・・・・・・・・・・・・・8(4) Notes to the financial statements・・・・・・・・・・・・・・・・・・・・・9(Note to assumption of going concern)・・・・・・・・・・・・・・・・・・・・9(Note to any significant change made to shareholders’ equity)・・・・・・・・・・・9(Segment information)・・・・・・・・・・・・・・・・・・・・・・・・・・9(Company merger)・・・・・・・・・・・・・・・・・・・・・・・・・・・・9

1. Qualitative information on the financial results for the first half
(1) Business results highlights[Outline of the first half under review]
During the first half of the fiscal year ending December 31, 2017 (from January 1 to June 30,2017), the world economy was marked by an ongoing moderate recovery as a whole.
However, future outlook was still uncertain such as for China, among other emerging market
economies in Asia, and developments and effects of U.S. government policies.
Meanwhile, the Japanese economy kept its moderate recovery trend as a whole as corporate
business results and the job climate improved.
In these circumstances, for the first half under review, net sales stood at 86,646 million yen
and operating income amounted to 3,260 million yen. Ordinary income totaled 3,053 million
yen and profit attributable to owners of parent came to 1,448 million yen.
The following highlights the business results by segment[Outline of the business results by segment](i) Asian Food Global BusinessIn the Asian Food Global Business, for the first half under review, net sales stood at 64,951
million yen and operating income amounted to 3,104 million yen.
Although net sales in North America grew steadily on a local currency basis, profits declined
as selling, general and administrative expenses climbed due to headcount expansion aimed tobolster the logistics business unit.
In regions other than North America, both net sales and operating income grew markedly
because we converted Harro Foods Limited in the U.K. and Nippon Foods Co., Ltd. in Hong
Kong into consolidated subsidiaries of the Group as well as business expansion andstrengthening profit at existing facilities.
(ii) Agricultural and Seafood Products Trading BusinessIn the Agricultural and Seafood Products Trading Business, for the first half under review, net
sales stood at 27,173 million yen and operating income amounted to 159 million yen.
Although net sales were more or less flat compared to a year-ago period, operating income
declined year on year as we had no alternative but to engage in below-cost sales as a result ofa spike in the cost of citrus and tropical trade goods since the fourth quarter of the fiscal year
ended December 31, 2016.
(iii) Other businesses
In other businesses, for the first half under review, net sales stood at 1,649 million yen andoperating income amounted to a negative 14 million yen.
* Net sales figures shown in the “Outline of the business results by segment” section above
include intersegment sales and transfers.

(2) Financial position highlights(i) Financial position(Assets)
Total assets as at June 30, 2017 stood at 75,929 million yen, an increase of 3,208 million yen
compared to December 31, 2016, which was mainly attributable to the following.
Total current assets as at June 30, 2017 amounted to 67,454 million yen, an increase of 2,316
million yen compared to December 31, 2016, which was chiefly due to a rise of 992 million
yen in inventories and a gain of 743 million yen in cash and deposits.
Total non-current assets as at June 30, 2017 came to 8,475 million yen, an increase of 891
million yen compared to December 31, 2016, which was caused by a gain of 1,104 million
yen in investment securities that were newly acquired by the Company.
(Liabilities)
Total liabilities as at June 30, 2017 stood at 36,669 million yen, an increase of 2,928 million
yen compared to December 31, 2016, which was mainly attributable to the following.
Total current liabilities as at June 30, 2017 amounted to 21,834 million yen, an increase of
3,003 million yen compared to December 31, 2016, which was chiefly due to a rise of 1,848
million yen in notes and accounts payable – trade in relation to elevated net sales and to a gainof 1,822 million yen in short-term loans payable.
Total non-current liabilities as at June 30, 2017 came to 14,835 million yen, a decrease of 75
million yen compared to December 31, 2016, which was caused by a decline of 119 million
yen in deferred tax liabilities.

(Net assets)
Total current net assets as at June 30, 2017 stood at 39,259 million yen, an increase of 280
million yen compared to December 31, 2016, which was due to a rise of 1,443 million yen inretained earnings, offsetting a decrease of 1,125 million yen in the foreign currencytranslation adjustment.
(ii) Cash flows
Cash and cash equivalents (“Cash”) as at June 30, 2017 stood at 25,167 million yen, an
increase of 2,258 million yen compared to December 31, 2016.
The following describes cash flows of different categories for the first half under review aswell as their key contributing factors.
(Cash flows from operating activities)
Cash flows from operating activities for the first half under review stood at 1,512 million yen.
Main factors for increase in cash flows from operating activities consisted of 2,536 million
yen in income before income taxes and minority interests and a gain of 2,008 million yen innotes and accounts payable – trade. Main factors for decrease in cash flows from operating
activities were composed of 1,770 million yen in income taxes paid and a rise of 1,557
million yen in inventories.
(Cash flows from investing activities)
Cash flows from investing activities for the first half under review stood at a negative 592
million yen. A main factor for increase in cash flows from investing activities was a decreaseof 1,514 million yen in time deposits. Main factors for decrease in cash flows from investing
activities were composed of 1,096 million yen in purchase of shares in affiliate and 471
million yen in loans.
(Cash flows from financing activities)
Cash flows from financing activities for the first half under review stood at 1,694 million yen.
A main factor for increase in cash flows from financing activities was a gain of 1,812 million
yen in short-term loans payable.

(3) Explanation about future forecasts such as consolidated financial results forecast
For our forecast on the financial results for the fiscal year ending December 31, 2017, please
see the release titled “Notification on Financial Results and Related Information of NishimotoCo., Ltd. Associated with the Listing of its Stock on the First Section of the Tokyo Stock
Exchange.” This forecast was devised on the basis of information currently available to theCompany as well as certain assumptions deemed to be reasonable, and actual results may
potentially differ from the forecast owing to various future factors.

2. Matters on summary information (notes)(1) Change to significant subsidiaries during the first half under review
Not applicable(2) Application of accounting treatment unique to the preparation of these financial statements
Calculation of tax expenses
We calculated the tax expenses of some of non-Japan consolidated subsidiaries by multiplying
income before taxes by an effective tax rate which was estimated as one after the applicationof tax effect accounting treatment of income before taxes for the fiscal year including the firsthalf under review.

(3) Change to accounting policy and changed or revised display of accounting estimation
Not applicable(4) Additional information
Application of application guidelines on recoverability of deferred tax assets
Staring from the first quarter of the fiscal year ending December 31, 2017, we applied theApplication Guidelines on Recoverability of Deferred Tax Assets (ASBJ Guidelines No. 26 ofMarch 28, 2016).

3. Financial statements for the first half
(1) Balance sheet(millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Inventories
Deferred tax assets
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Leased assets, net
Others, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
OthersTotal intangible assets
Investments and other assets
Investment securities
Guarantee deposits
Deferred tax assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

FY ended December 31, 2016

First half ended June 30, 201724,452
17,633
21,266
872
1,248
△335
65,13725,196
17,573
22,259
778
1,910
△263
67,454

2,356
417
109
298
318
3,499

2,279
396
97
270
410
3,454

919
149
2,101
3,170

838
200
1,374
2,413

129
361
408
50
△35
914
7,583
72,721

1,234
358
503
544
△34
2,607
8,475
75,929(millions of yen)

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
Allowance for bonuses
OthersTotal current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Other cumulative comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other cumulative comprehensive income
Total net assets
Total liabilities and net assets

FY ended December 31, 2016

First half ended June 30, 2017

8,772
4,194
143
62
3,111
367
540
1,638
18,83010,620
6,017
145
59
3,049
102
350
1,489
21,834

12,542
237
369
502
897
361
14,911
33,741

12,539
215
249
462
958
409
14,83536,669100
774
36,111△5
36,980100
774
37,554△5
38,423

11
42
1,945
1,999
38,97972,721

12
3
820
836
39,25975,929(2) Statement of income and statement of comprehensive income(Statement of income)(First half of FY ending December 31, 2017)(millions of yen)First half of FY ending
December 31, 2017 (fromJanuary 1 to June 30, 2017)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodOthersTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Total extraordinary income
Extraordinary losses
Impairment loss
Total extraordinary losses
Income before taxes and minority interests
Income taxes – current
Income tax adjustment
Total income taxes
Net income
Profit attributable to non-controlling shareholders
Profit attributable to owners of parent

86,646
71,94914,696
11,436
3,260
43
27
9
79
96
189
0
286
3,053
－
517
517
2,536
1,167
△80
1,087
1,448
－
1,448

(Statement of comprehensive income)(First half of FY ending December 31, 2017)(millions of yen)First half of FY ending
December 31, 2017 (FromJanuary 1 to June 30, 2017)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Gains or losses on deferred hedges
Foreign currency translation adjustment
Share of income of entities accounted for using equity
methodTotal other comprehensive income
Comprehensive net income(Breakdown)Comprehensive net income attributable to ownersof parent
Comprehensive net income attributable tonon-controlling shareholders

1,448
1
△38
△1,126
1△1,162
285
285－

(3) Statement of cash flows(In millions of yen)First half of FY ending
December 31, 2017 (FromJanuary 1 to June 30, 2017)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
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 provision for bonuses
Increase (decrease) in net defined benefit liability
OthersSub-totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refunded
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares in affiliate
Purchase of shares in subsidiary
Loans
Decrease (increase) in time deposits
OthersCash flows from investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Repayments of finance lease obligations
Dividend payments
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and equivalents
Beginning balance of cash and equivalents
Increase (decrease) in cash and cash equivalents resulting frommerger of consolidated subsidiary and non-consolidated
subsidiaryEnding balance cash and equivalents

2,536
557
517
△59
△43
96
136
△328
△1,557
2,008
△176
21
△479
3,230
48
△88
△1,770
92
1,512
△345
△18
△1,096
△167
△471
1,514
△7
△592
1,812
△79
△32
△4
1,694
△474
2,140
22,909117
25,167

(4) Notes to the financial statements(Note to assumption of going concern)
Not applicable(Note to any significant change made to shareholders’ equity)
Not applicable(Segment information)
First half of the fiscal year ending December 31, 2017 (from January 1 to June 30, 2017)
1. Information related to net sales and profits/losses by reporting segment(millions of yen)
Reporting segment
Amounts in thestatements ofincome (Note2)

Asian Food
Global Business

Agriculturaland Seafood
Products
Trading
Business

Other business

58,002

26,994

1,649

86,646－

86,646

6,949

178

－

7,128

△7,128－64,951

27,173

1,649

93,774△7,12886,646

3,104

159

△14

3,248

11

3,260

Total

Adjustment(Note 1)

Net sales
Sales toexternalcustomers
Intersegment sales ortransfers
Total
Segment profits
losses (-)

orNotes:
1. Adjustments are as follows:
Intersegment sales or transfers of -7,128 million yen refer to the elimination of intersegment
transactions.
The adjustment of segment profits includes the elimination of intersegment transactions andthe expenses of all group companies. The expenses of all group companies mainly consist of
selling, general and administrative expenses, which are not attributable to any reporting
segments.
2. Segment profits are adjusted with operating income in the statements of income.

2. Information related to impairment loss of non-current assets and goodwill by reporting
segment

In the Asian Foods Global Business segment, we reviewed the specific purpose of customer
related assets. As a result, regarding the business-use assets of a Hong Kong subsidiary for its
import and wholesale business of Japanese ingredients and foodstuffs, we estimate that therecoverable amount is nil and record it as an impairment loss.
The said impairment loss recorded is 517 million yen in the first half under review.
(Company merger)
The settlement of provisional accounting treatment regarding company merger
Regarding Nippon Foods Co., Ltd. acquired in the previous consolidated fiscal year, we had
applied provisional accounting treatment to the allocation of its acquisition cost in theprevious consolidated fiscal year, which was settled in the first half under review.
As for goodwill of 1,640 million yen calculated on a temporary basis in the previous
consolidated 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 depreciation method over 11 years.