Supplementary Material to Financial Results
Third Quarter of the Fiscal Year Ending December 2020

Nishimoto Co., Ltd.
November 13, 2020
2020 Nishimoto Wismettac Group All rights reserved.

Contents• Summary of Financial Results
for the Third Quarter of the Fiscal YearEnding December 2020

P. 2

• Forecasts of Financial Results
for the Fiscal Year Ending December 2020

P. 6

• Policy of Returning Profits to Shareholders

P. 9• Reference Material: Medium-term Business Plan P. 11• Corporate Profile

2020 Nishimoto Wismettac Group All rights reserved.

P. 161

Summary of Financial Results
for the Third Quarter of the Fiscal Year Ending
December 2020

2020 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the Third Quarter of the Fiscal Year Ending
December 2020
Although both net sales and profit made a steady recovery in the third quarter, net sales declined year-on-year on a cumulativebasis. Similarly, profit decreased year-on-year mainly due to the provision of allowance for doubtful accounts recorded in theprevious year.
Net sales declined 9.2% year-on-year on a cumulative basis despite a steady recovery in the third quarter owing to the reopening of therestaurant industry after the easing of regulations in countries around the world and a shift to the formats of take-out and food delivery as
well as the continued good performance of sales to retailers. However, the decline improved 4.2 points from the negative 13.4% of the endof the second quarter.

Profit remained steady in the third quarter as net sales were recovering, and operating income reached 55 million yen on a cumulativebasis.
• The additional provision of allowance for doubtful accounts and valuation loss of inventories, recorded in the first half as measuresagainst novel coronavirus pandemic (an approximate total of 1,700 million yen), remain unchanged.
(Unit: billions of yen)
FY ended December
FY ending December 20202019

Operating results

Third quarter results

Third quarter results

Changes year-on-year

Net sales

137.0

124.3

−12.6

Gross profit

23.7

20.6

−3.1

Operating income(Excluding policy expenses)

4.0

1.5

−2.5

Operating income or loss

3.5

0.0

−3.5

Ordinary income or loss

3.6

−0.2

−3.9

Net income or loss attributable toowners of parent

2.5

0.3−2.1

Yen/Dollar exchange rate
(Average rate during the period)

109.15 yen

107.59 yen−1.56 yen

Quarterly net income or loss per share

177.58 yen

25.36 yen−152.22 yen2020 Nishimoto Wismettac Group All rights reserved.

3

Operating Results by Segment for the Third Quarter of the Fiscal Year Ending
December 2020
In the Asian Food Global Business, although sales to the restaurant industry recovered moderately due to the easing ofregulations, profit decreased year-on-year. The Agricultural & Seafood Products Trading Business saw a recovery after thethird quarter, and profit increased year-on-year, though slightly.
Asian Food Global Business (hereinafter called “GAF”)
 Sales to the restaurant industry recovered moderately in the third quarter due to the gradual easing of regulations and a change of business formats, suchas take-out and food delivery. Sales to retailers maintained steady growth after the lifting of lockdowns, which, however, were not strong enough to makeup for the sales loss up to the second quarter, resulting net sales declining year-on-year on a cumulative basis.
• In the North American region, it decreased 16.9% year-on-year.
• In regions outside of North America, it increased 22.9% year-on-year (a negative 6.8% excluding two companies that were not subject toconsolidation in the previous term).
 As for profit, the provision of allowance for doubtful accounts and valuation loss of inventories, recorded in the first half, could not be absorbed. As a result,the segment posted an operating loss of 110 million yen.
• In the North American region, the operating income was 210 million yen (an operating income of 2,930 million yen in the same period of the previousyear).
• In regions outside of North America, the operating loss was 320 million yen (an operating income of 430 million yen in the same period of theprevious year).
Agricultural & Seafood Products Trading Business Net sales declined 5.2% year-on-year due to a delay in the recovery of demand in the restaurant industry although sales of fruits and vegetables toretailers performed well in the third quarter. Profit increased 18.0% year-on-year (an increase of 80 million yen) mainly due to the stabilization of themarket.
(Unit: billions of yen)

FY ending December 2020
Third quarter of FY ended
December 2019 results Third quarter results Changes year-on-year
Net sales
Operating income or loss
Net sales
Agricultural & Seafood
Products Trading Business Operating income or loss
Net sales
Other
Operating income or loss
Net sales
Adjustment items
Operating income or loss

GAF

Total

Net sales
Operating income or loss

2020 Nishimoto Wismettac Group All rights reserved.

95.2
3.3
39.1
0.4
2.6
0.0

84.7
−0.1
37.1
0.5
2.5
0.0

--−0.3
137.0
3.5

−0.4
124.3
0.0

−10.5
−3.4
−2.0
0.0
−0.1
−0.0
−0.0
−12.6
−3.54

Consolidated Balance Sheet (Summary)(Unit: billions of yen)
End ofDecember 2019

End of
September 2020

Amount/rate ofincrease (decrease)

Main changes

87.9

93.6

+5.7

Cash and deposits +11.7, Accounts
receivable—trade −1.7, Inventories −2.9,
Allowance for doubtful accounts −1.0

8.6

14.5

+5.9

Goodwill +6.7, Customer-related assets
−0.3

96.5

108.2

+11.6

Current liabilities

19.0

20.5

+1.4

Loans payable +0.9, Accounts
payable—trade +0.8, Accounts
payable—other −0.4

Non-current liabilities

25.1

37.1

+11.9Long-term loans payable +11.0, Leaseobligations +0.2

44.2

57.6

+13.4

Current assets

Non-current assets

Total assets

Total liabilities

Total net assets

52.3

50.5

−1.7

Total liabilities and netassets

96.5

108.2

+11.6

Shareholders’ equityratio

54.2%

46.6%

−7.6 pt

Current ratio

461.5%

456.0%−5.5 pt

2020 Nishimoto Wismettac Group All rights reserved.

Foreign currency translation adjustment−1.5
Retained earnings −0.45

Forecasts of Financial Results
for the Fiscal Year Ending December 2020

2020 Nishimoto Wismettac Group All rights reserved.

Impact on Performance of Spread of Novel Coronavirus Infection

Overseas markets

Sales results for the third quarter stayed strong mainly due to a sales recovery after the gradual lifting of lockdowns
and the stabilization of the market. However, the business outlook necessitates the continuing of a cautious
approach.

Impact on sales

Business outlook

 Sales to the restaurant industry temporarily
plunged by 10% to 20% year-on-year at thestart of the novel coronavirus pandemic but
have recovered most recently to 70% to 80%
year-on-year mainly due to the reopening of theeconomy after the lifting of lockdowns, andchanges of business formats, such as take-out
and food delivery.

The outlook for an economic recovery stays highly uncertain
primarily due to re-strengthening of restrictions on going out in
Europe resulting from the novel coronavirus pandemicrebounding.

 Sales to retailers have kept better results thanin the same period of the previous year in thewake of increased demand for eating at homein response to restraints on eating out.

<Positive factors>
 Responses to the new normal, such as take-out and fooddelivery, adopted by the restaurant industry
 Expansion and reinforcement of subsidies and economic
stimulus plans by countries around the world Signs of the spread of the infection coming to an end and arecovery of economic activity (in China, etc.)

Domestic
markets<Negative factors>
 Sales of fruits and vegetables and frozen foodremained strong to retailers; meanwhile, arecovery of demand has been delayed in therestaurant industry.
 Although sales of products are poor to retailers
due to cancellation or downsizing of events,
health foods remain strong.

2020 Nishimoto Wismettac Group All rights reserved.

 A return to stricter restrictions on business and going out inresponse to a second wave of infections (in Europe, etc.)
 Deterioration in customers’ businesses, primarily because
the period of granting financial aids for lost wages expires Increase in SG&A expenses due to partial suspension andconfusion of logistics

7

Forecasts of Financial Results for the Fiscal Year Ending December 2020
Full-year financial results forecasts remain unchanged from the time of the announcement of the financial results forthe second quarter.

 The third quarter saw a steady trend of business recovery in the wake of the reopening of economies incountries around the world, the full-year financial results forecasts remain unchanged in consideration of issues
including the most recent rebound of the novel coronavirus pandemic in Europe and the U.S.
 The Company will closely watch the current business trends by taking into account the impact that the external
environment can have on its performance.
(Unit: billions of yen)
FY ended December
2019
Full-year results

FY ending December 2020

Third quarter results

Full-year results
forecasts(Announced on August13, 2020)

Full-year changes ofprevious year

182.6

124.3

168.0

−14.6

Gross profit

32.1

20.6

27.4

−4.6

Operating income or loss

4.3

0.0

−0.6

−4.9

Ordinary income or loss

4.5

−0.2

−1.0−5.5

Net income or loss attributable toowners of parent

2.4

0.3

−0.5

−2.9

Yen/Dollar exchange rate
(Average rate during the period)

109.05 yen

107.59 yen

108.00 yen−1.05 yen

Quarterly net income or loss per share

173.71 yen

23.56 yen

−34.84 yen−208.55 yen

Operating results

Net sales2020 Nishimoto Wismettac Group All rights reserved.

8Policy of Returning Profits to Shareholders

2020 Nishimoto Wismettac Group All rights reserved.

Policy of Returning Profits to Shareholders
Basic Policy
 The Company’s basic policy for returning profits to shareholders is to continue providing
stable dividends while striving to maintain retained earnings to develop its businesses in thefuture and to improve its financial strength.
Year-end dividend forecast
 Although sales remained strong in the third quarter with operating income recorded on acumulative basis, the outlook remains highly uncertain, and the Company recognizes that
there is the need to closely watch future developments including the impact of the rebound of
the novel coronavirus pandemic in Europe and the U.S., in particular.
 Based on the above circumstances, the year-end dividend forecast remains “undetermined”
from the time of the announcement of the financial results for the second quarter.
 The Company will determine the forecast by considering matters in a comprehensive manner,such as business trends, retained earnings, etc. toward the end of the fiscal year.
[Reference] Dividend for the previous year (Fiscal year ended December 2019): 95 yen (a 40 yen interim dividend and a 55yen year-end dividend)
2020 Nishimoto Wismettac Group All rights reserved.

10Reference material

Medium-term Business Plan
This material is an excerpt from the Supplementary Material to Financial Results for Second
Quarter of the Fiscal Year Ending December 2020 (disclosed on August 13, 2020)

2020 Nishimoto Wismettac Group All rights reserved.

Vision for Nishimoto Wismettac GroupOne-stop solution company aiming for afusion of healthcare and foodWhatbusiness wewant to doCreate customers by providing and unifying“manufacturing” and “services” in the fields of healthcare
and foods.

Manufacturing

Healthcare

2020 Nishimoto Wismettac Group All rights reserved.

ServiceFood

12

Strengths of Nishimoto Wismettac – Three Areas of Breadth
Having accumulated more than a century of history, we have built a global foundationon the three axes of goods, logistical functions and human resources in the field offood.

1
Breadth ofhandled
goods

2

 Handling of more than 8,000 kinds of foods andingredientsWorldwide fruits & vegetables and seafood products
Processed foods, including Asian foods and delicacies
Supplements and amenity foods

 Consistent supply chain management
Breadth ofservice
functions

3
Breadth ofhumanresources
and network

Retaining data for optimal global production areas andfactories
Ability to develop our own PB products ( developmentability)
A base that ensures the safety and traceability of food forimport and export ( intellectual property)
Our own distribution infrastructure ( last one mile)

Growth into
a global
foodcompany

 49 bases in 13 countries worldwide and global
trade with the main players in food

Network with growers, suppliers and producers
Complete cold chain network with distribution providers
Long-years of global business relationships (credit) withrestaurants and retailers

2020 Nishimoto Wismettac Group All rights reserved.

13

Next Stage for Nishimoto Wismettac – Pursuing Two Areas toDeepen and Expansion
As consumer needs change, by enhancing the required functions and widening ourfields of business, we will not only be chosen by customers but also create customers
ourselves.

Until now

From now Dependence on producers for thedevelopment and production ofmany products Pursuit of balance between “priceand quality”

 Internalization of productplanning/design and production control
functions Cloud migration of development andproduction structures
 Pursuit of highly value-added products

1
Deepening
manufacturingfunctions Utilization of food technology

2
Deepening
services Supplier of foods and ingredients
 Competitive with excellent
operations
 Flexible ordering anddelivery, prices, and productknowledge of salespersons

3
Expansion of
medical field(healthcare) Only sale of supplements

2020 Nishimoto Wismettac Group All rights reserved.

 Provision of a total solution for foods
 Not a supplier, but a solution partner forcustomers
 Platformer using the know-how ofdifferent industries, not sticking to inhouse production

 Development, production and sale ofdifferentiated goods (medical foods)
responding to an increasingly elderly
population and expanding home healthcare

14Group PL Plan
Steady recovery of existing businesses from the impact of the coronavirus catastrophe
Active investment in new businesses
Planning assumption

Unit: billions of yen
Entirecompany

Assumption of normalization from the impact of the coronavirus pandemic during the first half of FY 2021

ResultFY 2019

Estimate
FY 2020Plan
FY 2021Plan
FY 2022

Sales

182.6

168.0

193.2

222.4

Profit4.3−0.6

2.56.5

Sales

180.5

165.3

184.8

205.2

Profit

5.4

1.4

4.8

8.0

Sales

128.8

115.7

131.8

150.3

Profit

4.5

1.0

4.0

7.0

Sales

47.7

46.0

49.1

50.8

Profit

0.8

0.3

0.6

0.8

Sales

3.9

3.6

3.9

4.1

Profit

0.1

0.1

0.2

0.2

Sales

2.1

2.7

8.4

17.2

Existing

GAF

Agricultural& Seafood
Products

Domestic
BtoC

New

Assessment
The operating income target for FY 2021 in
the previous medium-term business plan will
be achieved with a one year delay.
Sales growth will be delayed due to theimpact of the coronavirus but, after
improvements in profitability, the target in theprevious medium-term business plan will beachieved with a one year delay.
Earning capacity will recover steadily due toimprovements in profitability in North
America and growth in other regions.

Earning capacity will be steadily enhancedby the strengthening of domestic andinternational businesses.

Profitability will be kept stable with ourdiversified sales channels.

New businesses will further accelerate.

Profit−1.1

Note: The plan shows administrative accounting figures.
2020 Nishimoto Wismettac Group All rights reserved.

−2.0

−2.2

−1.5
15

Corporate Profile◆ Two spheres symbolizing the Earth and Globalism Red is used to show innovation, green represents
nature Expresses the Company’s “lasting commitment tocreating healthier and richer lives through food”◆ Incorporates the letters “W” “M” and “C” from theCompany name2020 Nishimoto Wismettac Group All rights reserved.

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

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

Head office

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

EstablishedMay 1912

Representative directors

Yoshiro Susaki, Chairman & President CEO

Number of employees

1,671(including 1,374 in the Asian Food Global Business) [As of December 31, 2019]
 Development and sales of Asian food worldwide

Business

Subsidiaries and affiliates
Business sites

 Imports and sales of fruit, vegetables and related processed products, and supply offood ingredients to food manufacturers and the restaurant sector
16 subsidiaries, 1 affiliate
49 worldwide (including 24 in North America)
Locations in Japan, the U.S., Canada, Singapore, Australia, Netherlands, U.K., Germany,France, China, Hong Kong, Thailand, Vietnam and South Korea

Consolidated net sales

182.6 billion yen (FY ended December 2019)Consolidated ordinary
income4.5 billion yen (FY ended December 2019)

Shareholders’ equity ratio
2020 Nishimoto Wismettac Group All rights reserved.

* Overseas sales ratio 67.7%

54.2% (FY ended December 2019)17

Nishimoto Wismettac: Domestic and Overseas Business Sites
Developing businesses in all continents with 49 global locations in North America, Europe, Australia
and Asia, among which North America (U.S. and Canada) has 24 locations accounting for themajority of sales
13 ・COMPTOIRS DES 3 CAPS SARL・COMPTOIRS OCEANIQUES| CAP CAVALLY・
16 ・TROPIC FISH
12 SSP Konsumgüter TRADE & CONSULT GmbH

Calgary Office

10 Harro Foods LimitedDenver Office
Wismettac Asian
4 Foods, Inc. (Canada)

1 Nishimoto Co., Ltd.
WF Seoul Representative Office

Las Vegas Office

2 Wismettac Foods, Inc.

Seattle Office

7 NTC Wismettac Europe B.V.
WF Paris Representative Office

Sacramento Office

8 Wismettac Foods
Shanghai Co., Ltd.

San Francisco Office

9 Shanghai IPM Co., Ltd.

3

11 Nippon Foods Co., Ltd.
17 Sim Ba Trading Co., LTD
WF Ho Chi Minh Representative Office
WF Bangkok Representative Office

Wismettac AsianFoods, Inc.

Hawaii OfficeSan Diego Office

WF Naha Representative Office

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

WF Kobe Office
WF Kobe Branch

Chicago Office

Arizona OfficeOrlando OfficeAtlanta Office

Houston Office

5 NTC Wismettac Singapore Pte.Ltd.

Dallas Office
NTC Wismettac Australia Brisbane Office

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

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

2020 Nishimoto Wismettac Group All rights reserved.

18