Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022
(Japanese GAAP)May 13, 2022

Company name: Nishimoto Co., Ltd.
Listed exchange: Tokyo
Code:
9260
URL: https://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:
May 13, 2022
Scheduled date of commencement of dividend payments:—
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:No(Amounts are rounded down to the nearest million yen)
1. Consolidated financial results for the first quarter of the fiscal year ending December 31, 2022
(from January 1, 2022 to March 31, 2022)(1) Consolidated results of operations (cumulative)(Percentages denote year-on-year changes)
Net sales

Operating income

Million yen%

Million yen%

Million yen%

Million yen

%

3,197

173.9

2,163

139.2

1,167

–

904

695.9

First quarter of FY ending
59,005
32.3
2,902
158.6
December 31, 2022
First quarter of FY ended
44,611
3.6
1,122–
December 31, 2021
(Note) Comprehensive income
First quarter of FY ending December 31, 2022: 5,559 million yen (50.0%)
First quarter of FY ended December 31, 2021: 3,706 million yen (–%)
Diluted net income per
Net income per share
share
First quarter of FY ending
December 31, 2022
First quarter of FY ended
December 31, 2021

Profit attributable toowners of parent

Ordinary income

Yen

Yen

150.77150.5263.03–(2) Consolidated financial position
Total assets

Net assets

Million yen

As of March 31, 2022
163,406(FY 2022 1Q)
As of December 31, 2021
141,769(FY 2021)(Reference)
Shareholders' equity
First quarter of FY ending December 31, 2022:
FY ended December 31, 2021:

2.

Equity ratio

Million yen%

64,49439.2

59,86241.9

64,004 million yen
59,440 million yen

Dividends
Annual dividends
First quarter-end
Yen

Secondquarter-end

Third quarter-end
Yen

FY ended December 31, 2021–
35.00
FY ending December 31, 2022–
FY ending December 31, 2022
65.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: Yes

Year-end

Total

Yen

Yen

Yen

–

70.00

105.00–60.00

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

Operating income%

Million yen%

Million yen

First half of FY ending
130,000
30.1
5,000
52.7
5,000
December 31, 2022
FY ending December
254,000
19.1
9,000
23.3
9,000
31, 2022(Note) Revision to the forecast for financial results announced most recently: Yes%

Million yen

%

Yen

49.9

3,500

35.3

243.85

24.9

6,000

19.3

418.03* Notes(1) Changes in significant subsidiaries during the first three months of the fiscal year:
None(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
New – companies(Company name) / Excluded – companies (Company name)(2) Application of accounting treatment specific to the preparation of quarterly consolidated
financial statements:(3) Changes in accounting policies, changes to accounting estimates, and restatements(i) Changes in accounting policies due to revisions of accounting standards:

Yes

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 end of the As of March 31,2022
period (including treasury shares)(ii) Number of treasury shares at the end of the
As of March 31,2022
period(iii) Average number of shares during the period
As of March 31,
2022(three months ended March 31, 2022)

14,353,140 shares

December 31,
2021

14,353,140 shares

153 shares

December 31,
2021

153 shares

14,352,987 shares

March 31, 2021 14,353,006 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 4 of theattachment.
(How to obtain the quarterly financial results supplementary materials)
The quarterly financial results supplementary materials will be disclosed on TDnet on May 13, 2022 and will also be posted on the
Company's website.

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

 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................................................ 4
2. Quarterly consolidated financial statements and major notes .................................................................................. 5(1) Quarterly consolidated balance sheet ................................................................................................................. 5(2) Quarterly consolidated statements of income and comprehensive income ........................................................ 7(3) Notes to the quarterly consolidated financial statements ................................................................................... 9(Notes to assumption of going concern) ............................................................................................................ 9(Notes on significant changes in shareholders' equity) ...................................................................................... 9(Application of accounting treatment specific to the preparation of quarterly consolidated financial
statements) ......................................................................................................................................................... 9(Changes in accounting policy) ......................................................................................................................... 9(Additional information) .................................................................................................................................. 10(Segment information) ..................................................................................................................................... 10(Business combination and other relationships)............................................................................................... 12–1–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

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 first quarterof 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 first quarter of the current
consolidated fiscal year increased by 340 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, (3) 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 quarter of the current consolidated fiscal year]
During the first quarter of the current consolidated fiscal year, the global economy faced an environment of increasing
uncertainty against the backdrop of the spread of a new variant of COVID-19 and continued inflationary pressures,
exacerbated by Russia's aggression towards Ukraine and lockdowns in China.
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 a structural reform to continuously
achieve sustainable and stable 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, theCompany Group has been working 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 the first quarter of the current consolidated fiscal year, net sales stood at
59,005 million yen (32.3% increase year-on-year), operating income amounted to 2,902 million yen (158.6% increase year-onyear), ordinary income amounted to 3,197 million yen (173.9% increase year-on-year), and profit attributable to owners ofparent totaled 2,163 million yen (139.2% 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 first 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 the first quarter of the current consolidated fiscal year, the Company had net sales of
46,360 million yen (39.0% increase year-on-year) and operating income of 2,985 million yen (139.0% increase year-onyear).
In the North America region, sales to restaurants in particular grew significantly, while sales to grocery stores also remained
strong, as measures to prevent COVID-19 infection have largely been removed and the region regains its pre-pandemic
routine.
As for income, although personnel and other expenses are on an upward trend, the tight supply-demand balance due to delays
in distribution and improvement of the inventory situation continue, resulting in a profit margin at about the same level as in–2–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

the second half of the previous fiscal year. In addition, delays occurred not only in distribution but also in the manufacturing
process of the source of product procurement, stemming from an increasingly deteriorating situation of container vessels
unable to enter seaports and general personnel shortages. The Company Group worked to maintain stable supply of products
and service level by maintaining inventory and implementing personnel measures in a controlled manner. These group-widesales measures proved successful, resulting in a significant increase in both net sales and income in the first quarter of thecurrent consolidated fiscal year compared to same period of the previous year, when the Company was still under the strong
influence of measures put in place to prevent the spread of COVID-19 infections.
In regions outside of North America, in Europe, the number of newly infected patients remained high, similar to North
America, but net sales achieved a steady recovery as result of deregulation and promotion of economic activities. In the Asiaand Oceania region, net sales temporarily declined due to tightened regulations brought on by the spread of COVID-19
variants and shortages caused by break-down in the supply chain, but net sales recovered steadily as the region graduallyadapted to coexisting with COVID-19 and migrated toward deregulation. Both net sales and income increased year-on-year
despite higher raw material and ocean freight costs, as well as higher distribution and labor costs.
The direct impact of the situation in Ukraine on our business results for the first quarter of the current consolidated fiscal
year was nominal.
(ii) Agricultural & Seafood Products Trading BusinessIn the Agricultural & Seafood Products Trading Business, for the first quarter of the current consolidated fiscal year, theCompany had net sales of 11,497 million yen (11.8% increase year-on-year) and operating income of 0 million yen(operating loss of 71 million yen in the same period of the previous year).
Net sales increased year-on-year due to contribution from acquisition of a major fruit and vegetable wholesaler in Singapore,
Ban Choon Marketing Pte. Ltd., who became a consolidated subsidiary in January, although the Company struggled to securesales in the domestic market due to supply shortages caused by unstable delivery schedules, the ongoing enforcement of"Law on Measures to Prevent the Spread of COVID-19" in major metropolitan areas, and the price impact of higher purchasecosts due to increase in distribution cost and exchange rate volatilities.
As for income, both net sales and income decreased during the same period of the previous year due to sluggish prices in thedomestic market, due mainly to increasing competition with domestic fruits and vegetables and lower sales from therestaurant chains. During the first quarter of the current consolidated fiscal year, however, the market was relatively
favorable and sales promotion in collaboration with major suppliers also proved successful, resulting in a year-on-yearincrease in income.
(iii) Other businesses
In other businesses, for the first quarter of the current consolidated fiscal year, the Company had net sales of 1,148 million
yen (17.0% increase year-on-year) and operating income of 54 million yen (29.0% decrease year-on year).
During the same period of the previous year, as the State of Emergency was declared, sales for Valentine's Day, the largest
sales opportunity, was carried out in conjunction with inventory adjustments in preplanned manner. During the first quarterof the current consolidated fiscal year, both net sales and income grew steadily as a result of the successful expansion of
consumer demand due to deregulation of sales activities, as well as the launch of new products and focus on the EC businessin the supplement business.
On the other hand, during the first quarter of the current consolidated fiscal year, the Company embarked on new businesses
in Japan, including expansion of its ready-made meal support business in collaboration with well-known restaurants and foodsupply business catering to post-operative and post-acute care patients. Selling, general and administrative expenses related
to these new businesses resulted in an increase in net sales and a decrease in income compared to the same period of theprevious year.

–3–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

(2) Explanation of financial position(Assets)
Total assets as of March 31, 2022 stood at 163,406 million yen, an increase of 21,637 million yen compared to December 31,
2021, and was mainly attributable to the following.
Total current assets as of March 31, 2022 amounted to 133,715 million yen, an increase of 8,978 million yen compared to
December 31, 2021. The increase in total current assets was due to an increase of 11,404 million yen in inventories and anincrease of 2,863 million yen in notes and accounts receivable—trade, despite a decrease of 5,446 million yen in cash anddeposits.
Total non-current assets as of March 31, 2022, came to 29,690 million yen, an increase of 12,658 million yen compared to
December 31, 2021. The increase in total non-current assets was due to an increase of 10,275 million yen in leased assets, net
and an increase of 1,615 million yen in goodwill.
(Liabilities)
Total liabilities as of March 31, 2022 stood at 98,912 million yen, an increase of 17,005 million yen compared to December
31, 2021, and was mainly attributable to the following.
Total current liabilities as of March 31, 2022, amounted to 41,922 million yen, an increase of 5,229 million yen compared to
December 31, 2021. The increase in total current liabilities was due to an increase of 3,361 million yen in notes and accounts
payable—trade, increase of 1,377 million yen in lease obligations, increase of 1,333 million yen in short-term loans payable,
increase of 1,105 million yen in income taxes payable, despite a decrease of 2,750 million yen in the current portion of longterm loans payable.
Total non-current liabilities as of March 31, 2022 was 56,989 million yen (an increase of 11,776 million yen compared to
December 31, 2021). The increase in total non-current liabilities was due to an increase of 9,283 million yen in leaseobligations and an increase of 2,738 million yen in long-term loans payable.
(Net assets)
Total net assets as of December 31, 2022 amounted to 64,494 million yen, an increase of 4,631 million yen compared to
December 31, 2021. The increase in total net assets was mainly due to an increase of 3,337 million yen in foreign currencytranslation adjustment and an increase of 1,196 million yen in retained earnings.

(3) Explanation of future forecasts such as consolidated financial results forecasts
With respect to the earnings forecast for the fiscal year ending December 2022, which was released on February
14, 2022, while net sales are expected to recover steadily in accordance with the gradual easing of restrictions toprevent the spread of COVID-19, as for income, the Company had assumed that, as global distribution regains
stability and the supply-demand balance shifts towards normalization, in addition to a price adjustment phase due
to price competition, increase in expenses, mainly from raw material and ocean freight costs, will have material
impact on gross profit.
Although the trend of rising costs and increasing expenses were as initially expected, current business conditions,particularly in the mainstay North America region, are such that price adjustments reflecting the tight supplydemand balance and other factors have enabled the Company to absorb a certain degree of cost increase andmaintain income levels. From the second quarter onward, a strong sense of uncertainty concerning the futureremains due to such concerns as the sharp rise in the price of energy and raw materials worldwide due to thesituation in Ukraine, the rapid depreciation of the yen, and the impact of the lockdown in China. However, theCompany has decided to revise its cumulative second quarter and full-year forecasts in view of the current
business conditions.
For details, refer to the "Notification Regarding Revision of Earnings Forecast and Dividend Forecast for the
Fiscal Year Ending December 2022" which will be released today.

–4–Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

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)First quarter of FY 2022
(As of March 31, 2022)

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

60,201
25,31745,902
2,692(397)

124,737

133,715

2,909
421
357
1,453
201

3,156
491
371
11,729217

5,344

15,966

Intangible assets
Goodwill
Software
Software in progress
Customer-related assets
Other

4,096
290
790
4,415
51

5,712
279
1,049
4,507
50

Total intangible assets

9,644

11,599

262
893
746
148
(7)

290
945
742
151
(5)

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
Other, net
Total property, plant and equipment

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

–5–

2,043

2,125

17,032

29,690141,769

163,406

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

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)First quarter of FY 2022
(As of March 31, 2022)

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

18,630
4,728
6,470
1,764
4,314
1,469
1,060
165
14
3,304

36,693

41,92240,015
1,115
1,209
135
111
131
2,494

42,753
10,399
1,232
88
131
118
2,265

45,21356,989Total liabilities

81,906

98,912

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

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

2,646
6,531
48,774(0)56,75557,952

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

11
36
6,004

Total accumulated other comprehensive income

2,684

6,052

422

490

Total shareholders' equity

Non-controlling interests
Total net assets
Total liabilities and net assets–6–

59,86264,494

141,769

163,406

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
First three months ended March 31, 2022

Net sales
Cost of sales

First three months of FY 2021
(January 1, 2021
to March 31, 2021)
44,611
36,066(Millions of yen)First three months of FY 2022
(January 1, 2022
to March 31, 2022)
59,00546,463Gross profit

8,545

12,542

Selling, general and administrative expenses

7,423

9,639

Operating income

1,122

2,902

14

14

1

13

3
110
1
9

0
354
1
29

139

414

86
3
4

118
–
1

95

119

1,167

3,197

–

–

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
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Total extraordinary income
Extraordinary losses––

Profit before income taxes

Total extraordinary losses

1,167

3,197

Income taxes—current
Income taxes—deferred

425
(172)

1,066
(40)

Total income taxes

252

1,025

Net income

914

2,171

Profit attributable to non-controlling interests
Profit attributable to owners of parent

–7–

9

7

904

2,163

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

Quarterly consolidated statement of comprehensive income
First three months ended March 31, 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 three months of FY 2021
(January 1, 2021
to March 31, 2021)
914(Millions of yen)First three months of FY 2022
(January 1, 2022
to March 31, 2022)
2,171

7
36
2,734
0

3
26
3,349
–

13

8

2,792

3,388

3,706

5,559

3,698

5,531

7

28

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests–8–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

(3) 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 accounting treatment specific to the preparation of 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 first 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 340 million yen, and gross profit, operating income, ordinary income, and profit before
income taxes each increased by 21 million yen during the first 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 first 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.

–9–Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

As a result of the application of this standard, property, plant and equipment, current liabilities, and non-current liabilities
increased by 9,868 million yen, 1,332 million yen, and 8,815 million yen, respectively, in the consolidated balance sheet for the
first quarter of the current consolidated fiscal year. The effect of this change on profit and loss for the first quarter of the current
consolidated fiscal year and segment information is immaterial.
(Additional information)
Accounting estimates 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 estimates associated with the novel coronavirus pandemic in theConsolidated Financial Results for the Fiscal Year Ended December 31, 2021.
(Segment information)
First three months of the fiscal year (from January 1, 2021 to March 31, 2021)
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
Sales to external customers
Intersegment sales or transfers
Total
Segment profit/loss

33,3482,329
35,677
1,248

10,2810
10,281
(71)

981
–
981
76

Total

Amounts recordedin the quarterly
consolidated
statement of income(Note 2)Adjustment(Note 1)

44,611
2,329
46,9401,253–(2,329)(2,329)(131)

44,611–
44,611
1,122(Note) 1. "Adjustment" for segment profit or loss in the amount of (131) million yen includes (119) million yen for eliminationof intersegment transactions and (11) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of dividend income from reporting
segments, and company expenses mainly comprise general and administrative expenses not attributed to reporting
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. The increase in goodwill attributable to this event is 828 million yen in the firstquarter of the previous consolidated fiscal year.
The goodwill is an amount calculated provisionally because the acquisition cost is not fully distributed in this consolidated
financial first quarter.

– 10 –

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

First three months of the fiscal year (from January 1, 2022 to March 31, 2022)
1.

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

Total

Adjustment(Note 1)

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

Net sales

Japan
North America
EuropeOther
Revenue from contracts withcustomers

1,914
33,376
8,691
2,377

9,347
–
–
2,149

1,148
–
–
–

12,41033,376
8,691
4,527

–
–
–
–

12,41033,376
8,691
4,527

46,36011,4971,148

59,005–59,00546,36011,4971,148
59,005–59,005
3,221
–
–
3,221
(3,221)–
Total
49,581
11,497
1,148
62,227(3,221)59,005
Segment profit
2,985
0
54
3,040
(137)
2,902
(Note) 1. "Adjustment" for segment profit in the amount of (137) million yen includes 2 million yen for elimination ofintersegment transactions and (140) 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.
Sales to external customers

Intersegment sales or transfers

2. The segment profit 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 first 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 income of the Agricultural & Seafood
Products Trading Business increased by 340 million yen and 21 million yen, respectively, during the first 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 1,529 million yen in thefirst quarter of the current consolidated fiscal year.
The goodwill is an amount calculated provisionally because the acquisition cost is not fully distributed in this consolidated
financial first quarter.

– 11 –

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

(Business combination and other relationships)(Business combination by acquisition)
On January 7, 2022, our consolidated subsidiary NTC Wismettac Singapore Pte. Ltd. (hereinafter referred to as "NTC Singapore")acquired 100% of the shares of Ban Choon Marketing Pte. Ltd. (hereinafter referred to as "BCM") located in Singapore. As aresult, BCM became a consolidated subsidiary of the Company.
(1) Outline of business combination(i) Name of the acquired company and its business lines
Name of the acquired company: Ban Choon Marketing Pte. Ltd.
Business lines: Wholesale of fruits and vegetables and processed foods(ii) Main reasons for the business combination
NTC Singapore currently operates import and wholesale business of Japanese foods mainly in Singapore. NTC Singapore
has recently acquired 100% of shares of BCM, a major wholesaler of fruits and vegetables in Singapore.
BCM, one of the leading companies in Singapore, is a wholesaler of vegetables and fruits serving a wide range ofcustomers including major retailers (including NTUC FairPrice, the largest retailer in Singapore), e-commerce retailers,
hotels and restaurants, and other food service operators.
The Company Group operates a business catering to major mass retailers, restaurant chains, individual restaurants, etc., inJapan, North America, Europe, China and Southeast Asia by taking advantage of its sales network infrastructure of
agricultural and marine products and Japanese and other Asian processed foods.
With the acquisition of BCM, the Company aims to achieve business growth by leveraging its strong global procurement
function of fruits and vegetables and to expand and strengthen its sales network infrastructure across Southeast Asia.
(iii) Date of business combination
January 7, 2022(iv) Legal form of the business combination
Through acquisition of shares for cash consideration(v) Name of the controlling entity after the business combination
The name remains unchanged(vi) Percentage share of voting rights acquired
100%(vii) Main reason for deciding to acquire the company
As the Company acquired shares of Interlock for cash.
(2) Period associated with the business results of the acquired company included in the quarterly consolidated statement of income
relating to the quarterly consolidated cumulative period
From January 1, 2022 to March 31, 2022
(3) Acquisition cost of the acquired company and breakdown
Consideration for acquisition: Cash

2,111 million yen

Acquisition cost

2,111 million yen(4) Goodwill, reason for recognizing goodwill, amortization method and amortization period(i) Goodwill accrued
1,476 million yen
The above is a provisional amount.
(ii) Cause of occurrence
The amount reflects the future excess earning power expected from the future business development and the synergy of
the Company Group and the acquired company(iii) Depreciation method and period
Straight-line method for 10 years– 12 –