Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2018
(Japanese GAAP)May 14, 2018

Company name: Nishimoto Co., Ltd.
Listed exchange: Tokyo
Code:9260
URL: http://www.wismettac.com/
Representative:
Takayuki Kanai, President
Contact:
Atsuhiko Kimura, Director and CFO(Phone) 03-6870-2015
Scheduled date of filing of quarterly report:
May 15, 2018
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, 2018(from January 1, 2018 to March 31, 2018)(1) Consolidated results of operations (cumulative)
Net sales
Million yen(Percentages denote year-on-year changes)
Profit attributable toOrdinary income
owners of parent

Operating income%

Million yen%

Million yen%

Million yen%

1,535

—

1,118

—

——

—

—

First quarter of FY ending
42,815
1,647——
December 31, 2018
First quarter of FY ended————
December 31, 2017
(Note) Comprehensive income
First quarter of FY ending December 31, 2018: (1,117) million yen (—%)
First quarter of FY ended December 31, 2017: —million yen (—%)
Diluted net income per
Net income per shareshare
YenYenFirst quarter of FY ending
77.91—December 31, 2018
First quarter of FY ended——December 31, 2017
(Note) Figures for the first quarter of the fiscal year ended December 31, 2017 and year-on-year percentage changes are not shownsince the Company did not prepare quarterly consolidated financial statements for the period.

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of March 31, 201882,120(FY 2018 1Q)
As of December 31, 201784,336(FY 2017)(Reference)
Shareholders’ equity
First quarter of FY ending December 31, 2018:
FY ended December 31, 2017:2.

Equity ratio

Million yen%

47,63058.049,75359.0

47,630 million yen
49,753 million yen

Dividends
Annual dividends
First quarter-end
Yen

Secondquarter-end

Third quarter-end
Yen

FY ended December 31, 2017
—0.00
FY ending December 31, 2018—
FY ending December 31, 2018
40.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Year-end

TotalYenYenYen—70.00

70.00

—

55.00

95.00

3.

Consolidated financial results forecast for the fiscal year ending December 31, 2018(from January 1, 2018 to December 31, 2018)

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
92,334
6.6
3,167 (2.8)
3,120
December 31, 2018
FY ending December
184,814
7.4
6,775
7.1
6,681
31, 2018(Note) Revision to the forecast for financial results announced most recently: None%

Million yen%

Yen

2.2

2,180

50.5

151.93

12.9

4,664

52.1

324.98* Notes(1) Changes in significant subsidiaries during the first three months of the fiscal year:(Changes in specified subsidiaries resulting in changes in the scope of consolidation)

None(2) Application of accounting treatment specific to the preparation of quarterly consolidated
financial statements:

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

None(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,
December 31,
14,353,140 shares
14,353,140 shares
2018
2017
period (including treasury shares)(ii) Number of treasury shares at the end of theAs of March 31,
December 31,
67
shares36shares2018
2017
period(iii) Average number of shares during the period
As of March 31,14,353,100 shares March 31, 2017
—shares2018(three months ended March 31, 2018)(Note)For the first quarter of the fiscal year ended December 31, 2017, the quarterly consolidated financial statements were notdisclosed, and therefore the average number of shares during the period is not stated.

* 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 3 of theattachment.
(How to obtain the quarterly financial results supplementary materials)
The quarterly financial results supplementary materials will be disclosed on TDnet on May 14, 2018 and will also be posted on theCompany’s website.

 Attachment: Table of Contents
1. Qualitative information on quarterly financial results .............................................................................................. 2(1) Explanation of operating results ........................................................................................................................ 2(2) Explanation of financial position ....................................................................................................................... 3(3) Explanation of future forecasts such as consolidated financial results forecasts ................................................ 3
2. Quarterly consolidated financial statements and major notes .................................................................................. 4(1) Quarterly consolidated balance sheet ................................................................................................................. 4(2) Quarterly consolidated statements of income and comprehensive income ........................................................ 6(3) Notes to the quarterly consolidated financial statements ................................................................................... 8(Notes to assumption of going concern) ............................................................................................................ 8(Notes on significant changes in shareholders’ equity) ...................................................................................... 8(Application of an accounting treatment specific to the preparation of the quarterly consolidated
financial statements) .......................................................................................................................................... 8(Segment information) ....................................................................................................................................... 8(Significant subsequent events) ......................................................................................................................... 8–1–

1. Qualitative information on quarterly financial results(1) Explanation of operating results[Outline of the first three months of the fiscal year]
The overall world economy during the first quarter of the current consolidated fiscal year continued its ongoing moderate
recovery. However, the future outlook for places such as China and other emerging market economies in Asia, as well as
developments in and effects of U.S. government policies, etc., continue to be uncertain.
Meanwhile, the overall Japanese economy kept on its moderate recovery track as corporate business results and theemployment situation improved.
Under such circumstances, the Company Group has been working on improving operating results by operating two main
businesses: the Asian Food Global Business, that distributes Asian food products and ingredients such as Japanese food aroundthe world with a focus on North America, as well as in Europe, China, South East Asia, Australia, etc., and Agricultural &Seafood Products Trading Business, that distributes fruits and vegetables, fishery products, etc., with a focus on domesticmarkets, as well as in China, South East Asia, etc.
With regard to the Asian Food Global Business, in addition to the growth in the North American region, the Company Grouphas been aggressively developing markets, setting the strengthening of business bases in other regions as one of the Company
Group’s growth strategies. As for the Agricultural & Seafood Products Trading Business, in addition to the wholesale market,
which is the main distribution route, the Company Group has been working on developing other distribution routes (massretailers, restaurant chains, home-meal replacement industries, etc.) and overseas distribution routes (export of domestic fruits
and vegetables, offshore trading in fruits and vegetables, wholesale business in China, etc.).
As a result, with respect to the financial results for the first quarter of the current consolidated fiscal year, net sales stood at
42,815 million yen, operating income amounted to 1,647 million yen, ordinary income amounted to 1,535 million yen, andprofit attributable to owners of parent totaled 1,118 million yen.
Financial results by segment are as follows: It is noted that net sales of segments are net sales to external customers.
[Outline of operating results by segment](i) Asian Food Global BusinessIn the Asian Food Global Business, net sales stood at 29,866 million yen and operating income amounted to 1,333 million
yen for the first three months of the fiscal year.
Although net sales in the North American region grew steadily, selling, general and administrative expenses increased
because expenses in the logistics department, etc., such as personnel expenses have been rising since the previous
consolidated fiscal year. In the North American region, the Company Group will further strengthen and accelerate thestructural reform (improvement in the profit margin and reduction in logistics expenses) that has been promoted, as wellas making efforts to improve profitability.
In other regions, since the development of new customers and the boosting of existing customers have been steadily
progressing, the business base has been strengthening.
(ii) Agricultural & Seafood Products Trading BusinessIn the Agricultural & Seafood Products Trading Business, net sales stood at 11,801 million yen and operating income
amounted to 260 million yen for the first three months of the fiscal year.
With regard to net sales, the sales of fruits and vegetables to domestic wholesale markets, mass retailers, restaurant chainsand home-meal replacement industries grew steadily. As for overseas distribution routes, the sales of avocado, small
apples, etc., grew steadily. Income increased because the sales of citrus and tropical commodities in domestic markets,
which have experienced difficulties in the same period a year ago, recovered and grew in the current period.
(iii) Other businesses
In respect to the financial results for the first quarter of the current consolidated fiscal year, net sales stood at 1,147 million
yen and operating income amounted to 77 million yen due to an increase in sales of products in domestic markets,including products for Valentine’s Day and White Day.
(Note)

Since the Company did not prepare quarterly consolidated financial statements for the first three months of the fiscalyear ended December 31, 2017, an analysis was not performed compared to the same period in the previous fiscalyear.

–2–(2) Explanation of financial position(Assets)
Total assets as of March 31, 2018 stood at 82,120 million yen, a decrease of 2,216 million yen compared to December 31,
2017, and was mainly attributable to the following.
Total current assets as of March 31, 2018, amounted to 73,882 million yen, a decrease of 1,781 million yen compared toDecember 31, 2017. The decrease in current assets was due to a decrease of 2,786 million yen in cash and deposits
although an increase of 1,485 million yen in inventories.
Total non-current assets as of March 31, 2018, came to 8,238 million yen, a decrease of 434 million yen compared toDecember 31, 2017. The decrease in total non-current assets was mainly caused by a decrease of 207 million yen inbuildings and structures (net) and a decrease of 110 million yen in customer-related assets.
(Liabilities)
Total liabilities as of March 31, 2018 stood at 34,490 million yen, a decrease of 93 million yen compared to December 31,
2017, and was mainly attributable to the following.
Total current liabilities as of March 31, 2018, amounted to 19,696 million yen, an increase of 47 million yen compared toDecember 31, 2017. The increase in total current liabilities was due to an increase of 1,194 million yen in accounts
payable—other and an increase of 487 million yen in notes and accounts payable—trade although a decrease of 1,516
million yen in short-term loans payable.
Total non-current liabilities as of March 31, 2018 came to 14,793 million yen, a decrease of 140 million yen compared toDecember 31, 2017, which was caused by a decrease of 111 million yen in long-term loans payable.
(Net assets)
Total net assets as of March 31, 2018, stood at 47,630 million yen, a decrease of 2,122 million yen compared to December
31, 2017, which was due mainly to a decrease of 2,203 million yen in foreign currency translation adjustment.

(3) Explanation of future forecasts such as consolidated financial results forecasts
Financial results forecasts for the fiscal year ending December 31, 2018, are as stated in the Consolidated Financial Results for
the Fiscal Year Ended December 31, 2017, (Japanese GAAP) announced on February 14, 2018 and no changes have been
made to the forecasts.

–3–2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
FY 2017(As of December 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—tradeInventories
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, net
Leased assets, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Customer-related assets
Other
Total intangible assets
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–4–(Millions of yen)First quarter of FY 2018
(As of March 31, 2018)

31,303
18,81623,185553
2,066(262)75,66328,517
18,706
24,671585
1,646(244)73,8822,455
451
105
246
280
3,538

2,247
401
96
218
257
3,222

760
195
1,174
114
2,245

694
201
1,063
130
2,090

1,303
365
484
762
(26)
2,889
8,673
84,336

1,329
364
523
732
(24)
2,925
8,238
82,120FY 2017(As of December 31, 2017)
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
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets–5–(Millions of yen)First quarter of FY 2018
(As of March 31, 2018)

9,959
4,935
151
60
2,322
195
525
1,497
19,64810,446
3,418
148
56
3,517
94
424
1,588
19,696

12,612
191
221
494
1,007
406
14,934
34,583

12,501
167
201
510
1,037
376
14,79334,4902,646
6,531
39,173(0)48,351

2,646
6,531
39,286(0)
48,464

15
8
1,378
1,402
49,75384,336

18
(26)
(825)
(833)
47,63082,120(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
First three months ending March 31, 2018

Net sales
Cost of sales(Millions of yen)First three months of FY 2018
(January 1, 2018
to March 31, 2018)
42,81535,063Gross profit

7,751

Selling, general and administrative expenses
Operating income

6,103
1,647

Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodInsurance benefits received
Other

24
14167
8

Total non-operating income

213

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

43279
2

Total non-operating expenses
Ordinary income

325
1,535Extraordinary income
Total extraordinary income—

Extraordinary losses
Total extraordinary losses—

Profit before income taxes
Income taxes—current
Income taxes—deferred
Total income taxes

1,535511(94)
417

Net income
Profit attributable to non-controlling interests

1,118
—

Profit attributable to owners of parent

1,118–6–Quarterly consolidated statement of comprehensive income
First three months ending March 31, 2018

Net income(Millions of yen)First three months of FY 2018
(January 1, 2018
to March 31, 2018)
1,118

Other comprehensive income
Valuation difference on available-for-sale securities

2(34)Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income(2,162)(41)(2,236)(1,117)

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests(1,117)—–7–

(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 an accounting treatment specific to the preparation of the quarterly consolidated financial statements)
Calculation of tax expenses
The tax expenses of some of non-Japan consolidated subsidiaries were calculated by multiplying net income before taxes by aneffective tax rate, which was estimated as the rate after the application of tax effect accounting to net income before taxes for thefiscal year including the first quarter of the fiscal year.
(Segment information)
First three months of the fiscal year (from January 1, 2018 to March 31, 2018)
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

Total

Adjustment(Note 1)

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

29,866
4,425

11,80141

1,147—

42,815
4,467—(4,467)42,815—34,291
1,333

11,842
260

1,147
77

47,282
1,671(4,467)(23)

42,815
1,647(Note) 1. The segment profit adjustment of (23) million yen includes the elimination of intersegment transactions of (1,204)
million yen, as well as the company-wide profit and loss (net of company-wide revenues and company-wide expenses)
of 1,180 million yen that have not been allocated to each reporting segment. The company-wide income is mainly
dividend income from each reporting segment and the company-wide expenses are mainly general and administrative
expenses that are not attributable to any reporting segments.
2. The segment profit 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
No relevant items.
(Significant subsequent events)
No relevant items.

–8–