Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2021
(Japanese GAAP)
August 12, 2021
Company name: Nishimoto Co., Ltd.
Listed exchange: Tokyo
Code:
9260
URL: http://www.wismettac.com/
Representative:
Yoshiro Susaki, Chairman & President CEO
Contact:
Yuji Sasa, Director/CFO(Phone) 03-6870-2015
Scheduled date of filing of quarterly report:
August 13, 2021
Scheduled date of commencement of dividend payments:
September 16, 2021
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:Yes (For institutional investors and analysts)(Amounts are rounded down to the nearest million yen)
1. Consolidated financial results for the second quarter of the fiscal year ending December 31, 2021
(from January 1, 2021 to June 30, 2021)(1) Consolidated results of operations (cumulative)(Percentages denote year-on-year changes)
Net sales
Million yen

Operating income%

Million yen%

Second quarter of FY ending
99,91725.2
3,275—
December 31, 2021
Second quarter of FY ended
79,816(13.4)(1,226)—
December 31, 2020
(Note) Comprehensive income
Second quarter of FY ending December 31, 2021: 5,553 million yen (—%)
Second quarter of FY ended December 31, 2020: (1,905) million yen (—%)
Diluted net income
Net income per shareper share
Second quarter of FY ending
December 31, 2021
Second quarter of FY ended
December 31, 2020

Profit attributable toowners of parent

Ordinary income

Yen

Yen

180.26—(65.43)—

Million yen%

Million yen

%

3,334

—

2,587

—

(1,510)

—

(939)

—

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

As of June 30, 2021
124,452
56,109(FY 2021 2Q)
As of December 31, 2020
113,606
50,842(FY 2020)(Reference)
Shareholders' equity
Second quarter of FY ending December 31, 2021: 55,689 million yen
FY ended December 31, 2020:
50,454 million yen

2.

44.7
44.4

Dividends
Annual dividends
First quarter-end

FY ended December 31, 2020
FY ending December 31, 2021
FY ending December 31, 2021
(Forecast)(Note)

Secondquarter-end

Third quarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

—
—

0.00
35.00

—

20.00

20.00

—

45.00

80.00

Revision to the forecast for dividends announced most recently: Yes
For details, refer to the "Notice on Variance between Forecast for the Consolidated Cumulative Second Quarter for the Fiscal Year Ending
December 2021 and Actual Results, Revision of the Consolidated Earnings Forecasts for the Fiscal Year, Dividend of Surplus (Interim
Dividend), and Revision of Forecast for Year-end Dividend" which will be announced today.

3.

Consolidated financial results forecast for the fiscal year ending December 31, 2021
(from January 1, 2021 to December 31, 2021)
Net sales
Million yen%

Million yen%

Million yen%

Million yen%

Yen

200,000

18.7

5,500

177.4

5,100

197.3

3,800

273.9

264.75

FY ending December
31, 2021(Note)

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

Revision to the forecast for financial results announced most recently: Yes
For details, refer to the "Notice on Variance between Forecast for the Consolidated Cumulative Second Quarter for the Fiscal Year Ending
December 2021 and Actual Results, Revision of the Consolidated Earnings Forecasts for the Fiscal Year, Dividend of Surplus (Interim
Dividend), and Revision of Forecast for Year-end Dividend" which will be announced today.

* Notes(1) Changes in significant subsidiaries during the first six months of the fiscal year:
None(Changes in specified subsidiaries resulting in changes in the scope of consolidation)– companies
New – companies (Company name) / Excluded(Company name)(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 endof the period (including treasury shares)(ii)
Number of treasury shares at the end of
the period(iii) Average number of shares during theperiod (six months ended June 30, 2021)

As of June 30,
2021
As of June 30,
2021
As of June 30,
2021

14,353,140 shares
153 shares
14,352,996 shares

December 31,
2020
December 31,
2020

June 30, 2020

14,353,140 shares
112 shares
14,353,028 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 5 of theattachment.
(How to obtain the quarterly financial results supplementary materials)
The quarterly financial results supplementary materials will be disclosed on TDnet on August 12, 2021 and will also be posted on the
Company's website. The Company plans to hold a briefing meeting on the financial results for institutional investors and analysts on
August 18, 2021, based on these materials.

 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................................................ 5
2. Quarterly consolidated financial statements and major notes .................................................................................. 6(1) Quarterly consolidated balance sheet ................................................................................................................. 6(2) Quarterly consolidated statements of income and comprehensive income ........................................................ 8(3) Quarterly Consolidated Statement of Cash Flows ........................................................................................... 10(4) Notes to the quarterly consolidated financial statements ................................................................................. 11(Notes to assumption of going concern) .......................................................................................................... 11(Notes on significant changes in shareholders' equity) .................................................................................... 11(Application of an accounting treatment specific to the preparation of the quarterly consolidated
financial statements) ........................................................................................................................................ 11(Additional information) .................................................................................................................................. 11(Segment information) ..................................................................................................................................... 12–1–

1. Qualitative information on quarterly financial results(1) Explanation of operating results[Outline of the first six months of the fiscal year]
During this consolidated cumulative second quarter, the global economy continues to seesaw back and forth due to thecontinued impact of the COVID-19 pandemic. In countries and regions where vaccinations have progressed, restrictions havebeen partially relaxed and fiscal and monetary policy measures have been implemented, and it seems that confusion has abated
and the situation has settled down compared to the previous year, which led to a rebound in demand and boosted consumption
activities. Also, the restaurant industry, which was hard-hit by COVID-19 during the previous fiscal year, seems to be
recovering by adopting new forms of business suited to the circumstances wrought by COVID-19, such as take-out anddelivery services.
On the other hand, in countries and regions where COVID-19 has been resurging, restrictions such as lockdown have been
enforced again, and large gaps have arisen in the economic recovery between regions. In Japan, the declaration of a state of
emergency has been issued intermittently, and measures have been implemented, such as requesting restaurants to shorten theirbusiness hours and prohibit the provision of alcoholic beverages. Therefore, people have come to feel cooped-up in their daily
lives.
Under such circumstances, the Company Group reacknowledged its mission as a food distributer and has been making efforts
to steadily supply delicious and safe food products to customers and consumers all over the world, while ensuring employee
health and safety. At the same time, the Group has been working to recover and stabilize businesses impacted by the COVID19 pandemic during the previous fiscal year.
The main businesses of the Company Group are: the Asian Food Global Business that distributes food products and ingredientsfrom Asian countries, including Japan, to countries and regions such as North America, Europe, Asia, and Oceania; theAgricultural & Seafood Products Trading Business that distributes overseas agricultural and seafood products (mainly fresh
fruits and vegetables) in domestic markets and exports Japanese fresh fruits and vegetables to overseas markets; and offshore
trading. Also, the Company Group engages in business that distributes foreign brand foods, character and seasonal goods
planned and developed by the Company Group to imported food stores, daily sundry shops, etc. in Japan, and in business thatdevelops and distributes natural supplements.
As for the Asian Food Global Business, the Company Group has continued to work on a business structural reform to achievesustainable and stable incomes from the North American region as its major sales destination. Also, as one of its growthstrategies, the Company Group has been promoting the expansion of its business platform in regions outside of North America
using methods such as active M&A.
As for the Agricultural & Seafood Products Trading Business, the Company Group has continued to expand sales of imported
agricultural and seafood products to the domestic wholesale market, mass retailers, and restaurant chains as the three major
sales destinations. The Company Group has also actively worked on the expansion of overseas distribution routes, including
export of domestic fruits and vegetables, sales expansion in the Chinese market through offshore trading, in addition to its
overseas procurement capabilities developed so far.
As a result, with respect to the financial results for this consolidated cumulative second quarter, the Company had net sales of
99,917 million yen (25.2% increase year-on-year), operating income of 3,275 million yen (operating losses of 1,226 million
yen in the same period of the previous year), ordinary income of 3,334 million yen (ordinary losses of 1,510 million yen in thesame period of the previous year), and profit attributable to owners of parent of 2,587 million yen (loss attributable to ownersof parent of 939 million yen in the same period of the previous year).
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, for this consolidated cumulative second quarter, the Company had net sales of 73,092
million yen (37.5% increase year-on-year) and operating income of 3,367 million yen (operating losses of 1,039 million
yen in the same period of the previous year).
Sales to restaurants decreased significantly in the same period of the previous year due to lockdown and other restrictions
from the COVID-19 pandemic. Although the impact remains even in this consolidated cumulative second quarter, overallsales have recovered steadily to record a significant sales increase. Both net sales and income significantly decreased andprovision of allowance for doubtful accounts and valuation loss on inventories were recorded in the same period of theprevious year, however, the Company saw a significant income increase in this consolidated cumulative second quarterdue to sales increase, implementation of various profit recovery measures, and reversal of valuation loss on inventories
and provision of allowance for doubtful accounts. As specific measures, the Company has expanded products for delivery–2–and take-out services and grocery stores, implemented proactive price adjustments in anticipation of soaring raw material,
ocean freight, labor, and other costs, and reduced SG&A expenses.
In the mainstay North American region, the pessimistic outlook amid the resurgence of COVID-19 at the beginning of theyear was reversed and sales to restaurants recovered more than expected due to the relaxation of restrictions and a reboundin consumption demand thanks to the progress of vaccinations. Sales to grocery stores have also continued to perform welland recovered and exceeded the level of FY 2019 before the impact of the COVID-19 pandemic.
In regions outside of North America, vaccination has become widespread relatively quickly in the European region, andsome countries and regions show a steady recovery as in North America. On the other hand, in the Asia and Oceania
regions, even countries and regions that had been relatively successful in border measures now have to implement
lockdown and other measures again due to the spread of mutant strains of COVID-19 since May, which has sharply
reduced sales to restaurants.
(ii) Agricultural & Seafood Products Trading BusinessIn the Agricultural & Seafood Products Trading Business, for this consolidated cumulative second quarter, the Company
had net sales of 25,229 million yen (1.6% increase year-on-year) and operating income of 206 million yen (264.1%
increase year-on-year).
Net sales increased year-on-year thanks to the special demand for pineapples made in Taiwan, despite the strong impactsof market fluctuations on imported citrus fruits, our leading products, including their price decline by a steady production
increase of domestic citrus fruits and the subsequent price rise due to nationwide supply shortage resulting from inventory
adjustment, etc.
As for income, in the same way as net sales, a challenging business environment has continued where it is difficult tomaintain stable income impacted by market fluctuations of imported citrus fruits. However, income increased compared tothe same period of the previous year when it was difficult to secure profits from lemons in particular, due to operating
restrictions for the restaurant industry, one of our major customers, and excess inventories and a price slump due tosluggish sales.
(iii) Other businesses
In other businesses, for this consolidated cumulative second quarter, the Company had net sales of 1,595 million yen(13.9% decrease year-on-year) and operating losses of 20 million yen (operating income of 73 million yen in the same
period of the previous year).
During the Valentine's Day and White Day sales season, although the Company could secure profit by reducing purchases
according to the plan and SG&A expenses, sales decreased due to the continued impact on retailers, our major customers,
including shortened business hours, in April and onward by the intermittent declaration of a state of emergency. In thissecond quarter, both net sales and income decreased because there was no special demand for imported processed foods
and supplements that boost immunity.

–3–(2) Explanation of financial position
1. Assets, liabilities and net assets(Assets)
Total assets as of June 30, 2021 stood at 124,452 million yen, an increase of 10,846 million yen compared to December 31,
2020, and was mainly attributable to the following.
Total current assets as of June 30, 2021 amounted to 106,872 million yen, an increase of 8,751 million yen compared to
December 31, 2020. The increase in total current assets was due to an increase of 4,986 million yen in inventories, anincrease of 2,063 million yen in notes and accounts receivable—trade, and an increase of 1,353 million yen in cash anddeposits.
Total non-current assets as of June 30, 2021, came to 17,580 million yen, an increase of 2,094 million yen compared to
December 31, 2020. The increase in total non-current assets was due to an increase of 796 million yen in goodwill, an
increase of 711 million yen in leased assets, net, and an increase of 584 million yen in buildings and structures, net.
(Liabilities)
Total liabilities as of June 30, 2021 stood at 68,343 million yen, an increase of 5,579 million yen compared to December
31, 2020, and was mainly attributable to the following.
Total current liabilities as of June 30, 2021, amounted to 27,530 million yen, an increase of 6,036 million yen compared to
December 31, 2020. The increase in total current liabilities was due to an increase of 3,032 million yen in the current
portion of long-term loans payable, an increase of 2,432 million yen in notes and accounts payable—trade, and an increaseof 663 million yen in accounts payable—other.
Total non-current liabilities as of June 30, 2021 was 40,813 million yen (a decrease of 457 million yen compared to
December 31, 2020). The decrease in total non-current liabilities was due to a decrease of 1,603 million yen in net defined
benefit liability and a decrease of 645 million yen in provision for directors' retirement benefits, despite an increase of
1,525 million yen in other non-current liabilities including long-term accounts payable, etc.
(Net assets)
Total net assets as of June 30, 2021 amounted to 56,109 million yen, an increase of 5,266 million yen compared to
December 31, 2020. The increase in total net assets was mainly due to an increase of 2,894 million yen in foreign currencytranslation adjustment and an increase of 2,300 million yen in retained earnings.

2. Cash flows
Cash and cash equivalents (hereinafter referred to as "Funds") for the first six months of the current consolidated fiscal year
stood at 53,967 million yen, an increase of 3,025 million yen compared to December 31, 2020.
Cash flows for the first six months of the current consolidated fiscal year and the main factors affecting them are as follows.
(Cash flows from operating activities)
Cash flows from operating activities were positive at 621 million yen. This was mainly attributable to 3,509 million yen in
profit before income taxes, an increase of 1,812 million yen in notes and accounts payable—trade, 1,039 million yen in
depreciation and amortization as a non-cash expense, despite an increase of 3,330 million yen in inventories and adecrease of 2,231 million yen in net defined benefit liability.
The amount of funds obtained decreased by 2,710 million yen compared to the previous consolidated cumulative second
quarter (81.4% decrease year-on-year), which was mainly due to an increase of 5,692 million yen in cash outflows frominventories, an increase of 5,154 million yen in cash outflows from notes and accounts receivable—trade, and an increaseof 2,256 million yen in cash outflows from net defined benefit liability, despite an increase of 5,238 million yen in cash
inflows from notes and accounts payable—trade and an increase of 4,894 million yen in profit before income taxes.
(Cash flows from investing activities)
Cash flows from investing activities were negative at 108 million yen. This was mainly attributable to a cash outflow of
1,169 million yen from the purchase of shares of subsidiaries resulting in change in scope of consolidation, a cash outflow
of 399 million yen from the purchase of property, plant and equipment, and a cash outflow of 264 million yen from thepurchase of intangible assets, despite a cash inflow of 1,685 million yen from income due to a net change in time deposits.
The amount of funds spent decreased by 3,017 million yen compared to the previous consolidated cumulative second
quarter (96.5% decrease year-on-year). This was mainly attributable to an increase of 1,685 million yen in cash inflows
due to a net change in time deposits, a decrease of 1,125 million yen in cash outflows from the purchase of shares ofsubsidiaries resulting in change in scope of consolidation, and a decrease of 238 million yen in cash outflows from–4–

payments of loans receivable, despite an increase of 266 million yen in cash outflows from the purchase of property, plantand equipment.
(Cash flows from financing activities)
Cash flows from financial activities were positive at 727 million yen. This was mainly attributable to a cash inflow of
1,250 million yen from proceeds from long-term borrowings, despite a cash outflow of 339 million yen from repaymentsof long-term borrowings and a cash outflow of 287 million yen for cash dividends paid.
The amount of funds obtained decreased by 2,590 million yen compared to the previous consolidated cumulative second
quarter (78.1% decrease year-on-year). This was mainly attributable to a decrease of 3,283 million yen in cash inflows
from proceeds from long-term borrowings, despite a decrease of 501 million yen in cash outflows from cash dividends
paid and an increase of 482 million yen in cash inflows due to a net change in short-term loans payable.

(3) Explanation of future forecasts such as consolidated financial results forecasts
Regarding the financial results forecasts for the full fiscal year ending December 31, 2021, the Company continues to monitor
the impact of the resurgence of COVID-19 on trends of restrictions and economic activities both at home and abroad.
Especially, the Company Group, which is involved in the global supply chain, has been significantly impacted by reduced
vessel operations and shipping delays due to a shortage of containers, soaring ocean freight, and other negative factors. We
anticipate that the situation will become even more severe in the third quarter and beyond due to rising product procurementand delivery-related costs, loss of opportunity revenues, etc. In addition, the impact of rising labor costs of workers, mainly
drivers' costs, cannot be overlooked. The Company Group has revised its full-year earnings forecasts based on the businesssituation in this consolidated cumulative second quarter, as well as the latest economic environment outlook, cost-increasing
factors, etc.
For details, refer to the "Notice on Variance between Forecast for the Consolidated Cumulative Second Quarter for the Fiscal
Year Ending December 2021 and Actual Results, Revision of the Consolidated Earnings Forecasts for the Fiscal Year,
Dividend of Surplus (Interim Dividend), and Revision of Forecast for Year-end Dividend" which will be announced today.

–5–2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
FY 2020(As of December 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Inventories
Other
Allowance for doubtful accounts
Total current assets(Millions of yen)
Second quarter of FY 2021
(As of June 30, 2021)

52,71818,51025,2232,196(527)

54,071
20,57430,2092,417(401)

98,121

106,872

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

2,408
458
407
779
520

2,992
453
400
1,490
219

Total property, plant and equipment

4,573

5,555

4,187
330

4,983
330

Software in progress
Customer-related assets
Other

438
3,877
57

651
3,835
55

Total intangible assets

8,891

9,856

288
843
791
161
(63)

311
908
855
160
(67)

Intangible assets
Goodwill
SoftwareInvestments 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

–6–

2,020

2,168

15,485

17,580113,606

124,452

FY 2020(As of December 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable—trade(Millions of yen)
Second quarter of FY 2021
(As of June 30, 2021)

10,93013,362

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

3,513
371
290
2,445
383
823
88
11
2,635

3,379
3,403
333
3,109
299
725
30
1
2,885

Total current liabilities

21,493

27,53036,267
486
1,059
35
—
645
1,731
1,043

35,822
1,175
1,011
75
31
—
127
2,568

41,27040,813

Total liabilities

62,763

68,343

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

2,646
6,531
43,339
(0)

2,646
6,531
45,639(0)

Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for bonuses
Provision for share-based remuneration
Provision for directors' retirement benefits
Net defined benefit liability
Other
Total non-current liabilities

52,51754,817

Accumulated 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

Total shareholders' equity

10(2,045)
(18)

8
15
848
—

Total accumulated other comprehensive income(2,062)872

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

–7–

387

419

50,842

56,109113,606

124,452

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
First six months ended June 30, 2021

Net sales
Cost of sales

First six months of FY 2020
(January 1, 2020
to June 30, 2020)
79,816
67,241(Millions of yen)First six months of FY 2021
(January 1, 2021
to June 30, 2021)
99,917
81,173Gross profit

12,574

18,744

Selling, general and administrative expenses

13,801

15,469Operating income or loss

(1,226)

3,275

47

28

0

—

16
—
3
27

3
181
2
29

95

245

77
293
—

175
—
0

Provision of allowance for doubtful accounts
Other

—
7

3
5

Total non-operating expenses

378

186

(1,510)

3,334

324
—

—
174

324

174

198

—

198

—

(1,384)

3,509

(205)
(240)

1,054
(149)

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
Foreign exchange losses
Loss on equity-method investments

Ordinary income or loss
Extraordinary income
Marginal gain for gradual acquisition
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Impairment loss
Total extraordinary losses
Profit before income taxes orloss before income taxes
Income taxes—current
Income taxes—deferred
Total income taxes

(445)

905

Net income or loss

(939)

2,604

—

16

(939)

2,587

Profit attributable to non-controlling interests
Profit attributable to owners of parent orloss attributable to owners of parent–8–

Quarterly consolidated statement of comprehensive income
First six months ended June 30, 2021

Net income or loss
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
Total other comprehensive income

First six months of FY 2020
(January 1, 2020
to June 30, 2020)(939)(Millions of yen)First six months of FY 2021
(January 1, 2021
to June 30, 2021)
2,604

(5)
(1)
(945)
0

6
15
2,895
18

(13)

13

(965)

2,949

Comprehensive income(1,905)

5,553(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests(1,905)

5,522

—

31

–9–

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY 2020
(January 1, 2020
to June 30, 2020)
Cash flows from operating activities
Profit before income taxes or loss before income taxes
Depreciation and amortization
Marginal (gain) loss for gradual acquisition
Gain on revision of retirement benefit plan
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
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 accounts payable—other
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for shareholder
privilege program
Increase (decrease) in provision for share-based
payments
Increase (decrease) in net defined benefit liability
Other(Millions of yen)First six months of FY 2021
(January 1, 2021
to June 30, 2021)(1,384)
768
(324)
—
198
923
(47)
77

3,509
1,039
—
(174)
—
(148)
(28)
175

(0)

0

21

78

4,265

(889)

2,362

(3,330)(3,426)

1,812

5
(88)
(160)

552
(99)
(61)

(5)

(9)

—

31

25
(62)

(2,231)
1,610

Subtotal

3,148

1,836

Interest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes reimbursed

48
(57)
(269)
461

17
(174)
(1,058)—Cash flows from operating activities

3,331

621

(133)
(279)

(399)
(264)

(2,295)(1,169)

(221)
(238)
—
42

—
—
1,685
39

Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Income from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Repayments of finance lease obligations
Cash dividends paid

(3,126)

(108)

(216)
4,533
(79)
—
(129)
(789)

266
1,250
(339)
(0)
(161)
(287)

Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

3,318

727

(343)

1,786

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for acquiring shares of subsidiaries resulting
in changes in the scope of consolidation
Payments for acquiring shares of affiliate
Payments by loans
Net decrease (increase) in time deposits
Other

Net increase (decrease) in cash and cash equivalents

3,179

3,025

Cash and cash equivalents at beginning of period

38,84450,941

Closing balance of cash and cash equivalents

42,02453,967– 10 –

(4) 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 an effective tax rate, which was estimated as the rate after the application of tax effect accounting to net income before
taxes for the fiscal year including the second quarter of the fiscal year.
(Additional information)
Accounting estimate 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 estimate associated with the novel coronavirus pandemic in theConsolidated Financial Results for the Fiscal Year Ended December 31, 2020.
Transfer from the lump-sum retirement benefit plan to the defined contribution pension plan
Effective as of April 2, 2021, the Company and some of its domestic consolidated subsidiaries transferred their lump-sum
retirement benefit plans, with some exceptions, to defined contribution pension plans, and have adopted "Accounting forTransfer between Retirement Benefit Plans (ASBJ Guidance No. 1 revised on December 16, 2016) and "Practical Solution
on Accounting for Transfer between Retirement Benefits Plans" (ASBJ PITF No. 2 revised on February 7, 2007).
Along with this change, 174 million yen was recorded in gain on revision of retirement benefit plan under extraordinary
income for this consolidated cumulative second quarter.

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(Segment information)
First six months of the fiscal year (from January 1, 2020 to June 30, 2020)
1.

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

Other business

Total

Adjustment(Note 1)

Amounts recorded in
the quarterly
consolidated
statement of income(Note 2)—
(4,997)(4,997)(316)

79,816—
79,816(1,226)

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit/loss

53,1404,997
58,138(1,039)24,822024,822
56

1,853
—
1,853
73

79,816
4,997
84,814(909)(Note) 1. "Adjustment" for segment profit or loss in the amount of (316) million yen includes (1,403) million yen for eliminationof intersegment transactions and 1,086 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 loss on the Quarterly Consolidated Statement of Income.
2.

Information related to impairment loss of non-current assets and goodwill by reporting segment(Important impairment loss associated with non-current assets)
Due to decreased profitability under the impact of the novel coronavirus pandemic, the amount recoverable from thebusiness assets of a U.K. subsidiary in the import and wholesale business of Japanese foods and ingredients in the "Asian
Food Global Business" segment is estimated to be zero and it has been recorded as an impairment loss.
Due to decreased profitability under the impact of the novel coronavirus pandemic, the book value of the business assets ofa Hong Kong subsidiary in the import and wholesale business for Japanese foods and ingredients has been reduced to therecoverable amount and is recorded as an impairment loss. The recoverable amount is based on the net selling price.
The amount provided for such impairment loss was 198 million yen in the previous consolidated cumulative second quarter.
(Material fluctuation in goodwill)In the "Asian Food Global Business" segment, we acquired additional stock of SSP Konsumgüter TRADE & CONSULTGmbH whereby it became a consolidated subsidiary instead of an equity method affiliate. This increase in goodwill
attributable to this event was 2,782 million yen in the previous consolidated cumulative second quarter.
The goodwill is a provisionally calculated amount because the acquisition cost had not been fully distributed at the end of
the second quarter of the previous consolidated fiscal year.

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First six months of the fiscal year (from January 1, 2021 to June 30, 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 Business

Total

Adjustment(Note 1)

Amounts recorded in
the quarterly
consolidated
statement of income(Note 2)—
(4,416)(4,416)(277)

99,917—
99,9173,275

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit/loss

73,092
4,416
77,5093,367

25,229025,229
206

1,595
—
1,595
(20)

99,917
4,416
104,334
3,552(Note) 1. "Adjustment" for segment profit or loss in the amount of (277) million yen includes (119) million yen for eliminationof intersegment transactions and (157) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of consulting fee 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 thecompany was made into a consolidated subsidiary. The increase in goodwill attributable to this event is 839 million yen inthis consolidated cumulative second quarter.
The goodwill is an amount calculated provisionally because the acquisition cost is not fully distributed in this consolidated
financial second quarter.

– 13 –