February 12, 2021

To whom it may concern:
Company name: Nishimoto Co., Ltd.
Representative: Yoshiro Susaki, Chairman & President(Code No.: 9260 First Section of the Tokyo Stock Exchange)
Contact: Yuji Sasa, Director(Phone: 03-6870-2015)

Notification Regarding Variance between Earnings Forecast for Fiscal Year Ended December
2020 and Actual Results and Revision of Dividend Forecasts
The Company hereby notifies the occurrence of a variance between its earnings forecast for the fiscal
year ended December 2020, which was released on August 13, 2020, and actual results announced today
as outlined below.
Also, the Company has revised its year-end dividend forecast for the fiscal year ended December 2020,
which was released on May 14, 2020, as outlined below.
1.

Variance between earnings forecast and actual results(1) Variance between earnings forecast for the fiscal year ended December 2020 and actual results(Unit: millions of yen, %)Previous Forecast (A)(Announced on August13, 2020)
Results (B)Variance in Amount (B A)
Variance in Percentage(%)(Reference)Previous Year Results(Fiscal year endedDecember 2019)

Net sales

OperatingincomeOrdinaryincome

Profitattributable toowners of parent

Net income
per share(yen)168,000(600)(1,000)(500)(34.84)

168,449

1,982

1,715

1,016

70.80

449

2,582

2,715

1,516

0.3

---

182,603

4,343

4,543

2,493

173.71(2) Reason for the variance
In and after March 2020, due to the spread of new coronavirus (COVID-19), economic activities
were restrained all over the world by the implementation of countermeasures, such as state ofemergency declarations and lockdowns. Facing a very stern business outlook, the Company
announced on August 13, 2020 a revision of earnings forecast for the fiscal year ended December
2020.

While operating activities continued to be restricted in and after the third quarter, full-year results
exceeded the previous forecast mainly owing to the following factors: i) Selling, general andadministrative expenses were smaller than the forecast due to the promotion of efficient operation
mainly through the reduction of selling, general and administrative expenses particularly at overseas
business sites and subsidies for employment maintenance provided by national governments bothin Japan and overseas; ii) The profitability of the Agricultural & Seafood Products Trading Business
improved; and iii) In consideration of the latest status of collection of receivables, circumstances ofmajor customers, and the future sales potentials of inventories, the Company recorded a reversal of
about 1.2 billion yen of the provision for the allowance for doubtful accounts and the valuation loss
on inventories that were recorded in the first quarter and the second quarter.
2.

Revision of dividend forecast(1) Dividend forecast for the fiscal year ended December 2020
Annual dividend (yen)Second-quarter end
Year-endPrevious Forecast(Announced on May 14, 2020)
Revised Forecast
Current Year Results(Reference)Previous Year Results(Fiscal year ended December 2019)

TotalTBD

TBD

TBD

0.00

20.00
-20.00
-

40.00

55.00

95.00

(2) Reason for the revision
The Company has a basic policy of maintaining stable dividends, while securing internal reserves
for future business development and for bolstering its financial position. The Company considers
the dividend payout ratio as an important indicator of how appropriate a dividend payment is, andtargets a dividend payout ratio on a consolidated basis of approximately 30% for each fiscal year.
As notified in “Notice on Dividend of Surplus (Interim Dividend)” released on August 13, 2020,
the business environment deteriorated due to the spread of COVID-19, and the Company posted aconsolidated net loss of 939 million yen for the first half of the fiscal year ending December 2020.
Therefore, we regrettably decided not to pay an interim dividend for the fiscal year ending
December 2020.
Our forecast of year-end dividend for the fiscal year ending December 2020 has been revised to20.00 yen per share based on the policy mentioned above and the full-year earnings results
announced today.
Note: The forecast above is prepared based on the information currently available to us as wellas certain assumptions that we consider are reasonable. Actual results may significantly
deviate from the forecast due to various factors.