Supplementary Material to Financial Results
Second Quarter of the Fiscal Year Ending
December 2019

Nishimoto Co., Ltd.
August 13, 20192019 Nishimoto Wismettac Group All rights reserved.

Contents• Summary of Financial Results
for the Second Quarter of the Fiscal YearEnding December 2019

P. 2

• Forecasts of Operating Results
for the Fiscal Year Ending December 2019

P. 10

• Medium-term Business Plan

P. 15

• Policy of Returning Profits to Shareholders

P. 27• Corporate Profile

P. 29

2019 Nishimoto Wismettac Group All rights reserved.

1

Summary of Financial Results
for the Second Quarter of the Fiscal Year Ending
December 20192019 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the Second Quarter of the Fiscal Year Ending
December 2019
 Net sales for the Asian Food Global Business increased 4.9% year on year, but decreased 1.9% against the plan. Net sales for the
Agricultural & Seafood Products Trading Business decreased 3.6% year-on-year and 8.2% against the plan. As a result, total net sales
increased 2.1% year-on-year, but decreased 4.0% against the plan to 92.1 billion yen.
 Operating income for both the Asian Food Global Business and the Agricultural & Seafood Products Trading Business decreased. As
a result, total operating income also decreased 16.0% year-on-year and 13.0% against the plan.
 The impact of exchange rates (the yen depreciated against the US dollar by 1.37 yen from the previous fiscal year) when converting to
yen for consolidation purposes was plus 0.67 billion yen in terms of net sales and plus 0.02 billion yen in terms of operating income
compared to the same period of the previous fiscal year (for North America).
(Unit: billions of yen, Percentage to net sales is stated in parentheses

FY ended December
2018 First half
results *Operating results

Net sales
Gross profit
Operating income
Ordinary income
Net income attributable toowners of parent

FY ending December 2019
First half results

90.2

92.1

(100.0%)(100.0%)

15.3

15.8

(17.0%)(17.2%)

3.0

2.5(3.4%)(2.8%)

3.0

2.6(3.4%)(2.9%)

Difference
Changes year-on- Second quarter
betweenresults
forecastyear
and plan
+2.1%
+3.1%
−16.0%−13.2%

96.0(100.0%)16.4(17.1%)

2.9(3.1%)

2.9(3.1%)

2.1

−4.0%
−3.5%
−13.0%−10.7%

2.1

1.8(2.4%)(2.0%)

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

108.68 yen

110.05 yen+1.37 yen

110.00 yen＋0.05 yen

Quarterly net income per share

151.75 yen

130.86 yen−13.8%

148.27 yen−11.7%−13.8%(2.2%)−11.7%* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated
subsidiaries from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the first half ofthe fiscal year ended December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

3

Operating Results by Segment for the Second Quarter of the Fiscal Year Ending
December 2019
Asian Food Global Business Overall net sales increased 4.9% year-on-year, but decreased 1.9% against the plan [a 4.9% increase year-on-year in North America (a 3.5% increase on a local
currency basis) and a 5.2% increase year-on-year on a consolidated yen basis and a 10.0% increase on a weighted-average local currency basis in other regions].
 Operating income decreased 4.7% year-on-year and 3.9% against the plan. In the North American region, despite persistently high personnel and logistics
expenses and the recording of strategic expenses, the gross profit margin improve. As a result, operating income remained nearly flat from the previous fiscal year,
although it fell short of the plan. Operating income in other regions was largely in line with the plan (which anticipated a year-on-year decrease reflecting increases inpurchase/procurement personnel within the Group), although it decreased year-on-year as our U.K. subsidiary struggled. (Foreign exchange fluctuations resulting in
the weaker yen caused procurement costs to rise, which pressured profits.)
Agricultural & Seafood Products Trading Business Overall, net sales decreased 3.6% year-on-year and 8.2% against the plan. This was mainly due to the struggling sales of fruits and vegetables in general (citrus
fruits, tropical foods, and vegetables) and falls in unit sales prices in the Japanese market. In addition, our Chinese subsidiary continued to be affected by sluggish
sales of U.S.-made citrus fruits from the impact of U.S.-China trade tensions.
 Operating income decreased year-on-year and fell short of the plan due to across-the-board sales declines in fruits and vegetables, coupled with rises in costs.

Sales to external customers(Unit: billions of yen)
FY ending December 2019

FY ended December 2018
First half results

First half results

Changes year-on-year

Second quarter forecast

Difference between results
and plan

Asian Food Global Business

60.56

63.53

+4.9%

64.73

−1.9%

Agricultural & Seafood Products
Trading Business

27.83

26.82

−3.6%

29.21

−8.2%

1.85

1.82

−1.7%

2.07

−12.1%

90.25

92.18

+2.1%

96.02

−4.0%

Second quarter forecast

Difference between results
and plan

Other business

Total

Operating income
FY ending December 2019
FY ended December 2018
First half results*

First half results

Changes year-on-year

Asian Food Global Business

2.52

2.40

−4.7%

2.50

−3.9%

Agricultural & Seafood Products
Trading Business

0.52

0.19

−62.5%

0.63−69.1%

Other business

0.01

0.06

+224.9%

0.05

+6.0%

−0.01

−0.09

—

−0.25

—

3.05

2.56

−16.0%

2.95−13.0%

Adjustment & Strategic Expense forGroup Measures
Total* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated
subsidiaries from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the first half ofthe fiscal year ended December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

4

Operating Income for the First Half of the Fiscal Year Ending December 2019 (1)[Exchange rate (US$)]

Compared to same period
in previous fiscal year
Existing North
America

Other thanNorth America

+0.29

−0.07

First half of FY 2018 (Actual): 108.68 yen
First half of FY 2019 (Actual): 110.05 yen
Agricultural &Seafood
Products
Trading
Business

−0.32
Other

+0.04

Adjustment

FX (North
America)* Strategic
expenses

+0.06

+0.02

−0.50

(Unit: billions of yen)

3.05

・ But for strategic expenses, the Group’s overall operating income would have been about thesame level as in the previous fiscal year.
(*Strategic expenses include both segment strategic expenses and group strategic expenses.)・ Strategic expenses are mainly for personnel investments (new business and the digitalizationof existing businesses).
(For example, spending for strategic expenses for business restructuring factored into theplan.)

Results for firsthalf of FY ended
December 2018

This page shows figures after excluding segment strategic expenses, group strategic expenses, and unrealized
profit from each segment for the purpose of clarifying fluctuations in operating income. Hence, the operating
income fluctuation amounts in the table above do not match the segment operating income fluctuation amounts
as shown in the Consolidated Financial Results report.

2019 Nishimoto Wismettac Group All rights reserved.

2.56

Results for firsthalf of FY ending
December 20195

Operating Income for the First Half of the Fiscal Year Ending December 2019 (2)Comparison
with the plan

Existing North
America−0.21[Exchange rate (US$)]First half of FY 2019 (Plan): 110.00 yen
First half of FY 2019 (Actual): 110.05 yen

Other thanNorth America−0.01

Agricultural &Seafood Products
Trading Business

−0.44
Other

+0.00

2.95

Adjustment

FX (North
America)

+0.11

+0.00

*Strategic
expenses+0.16(Unit: billions of yen)・Operating income on an existing basis in North America in the Asian Food Global Business increased
year-on-year, but fell short of the plan. The gross profit margin improved from the previous term.
・Oher regions in the Asian Food Global Business delivered results that were largely in line with the plan
(which anticipated a year-on-year decrease, reflecting increases in purchase/procurement personnel
within the Group).

2.56

・Operating income in the Agricultural & Seafood Products Trading Business was affected mainly by the
weak sales of grapefruits, avocados, etc., and the rises in costs.
(*Strategic expenses include both segment strategic expenses and group strategic expenses.)Plan for first halfof FY ending
December 2019

This page shows figures after excluding segment strategic expenses, group strategic expenses, and unrealized
profit from each segment for the purpose of clarifying fluctuations in operating income.

2019 Nishimoto Wismettac Group All rights reserved.

Results for firsthalf of FY ending
December 20196

Consolidated Balance Sheet (Summary)(Unit: billions of yen)

End ofDecember 2018

End ofJune 2019

Amount/rate ofincrease (decrease)

74.9

74.5

−0.3

8.7

8.9

+0.1

83.7

83.5

−0.2

Current liabilities

20.1

19.8

−0.3

Non-current
liabilities

12.0

12.1

+0.0

Total liabilities

32.1

31.9

−0.2

Total net assets

51.5

51.5

+0.0

Total liabilities and net
assets

83.7

83.5

−0.2

Shareholders’ equity
ratio

61.5%

61.7%

+0.2 pt

Current ratio

371.4%

375.3%+3.9 pt

Current assets
Non-current assets
Total assets

Notes

Retained earnings +1.0, translation
adjustment −1.0

* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated subsidiaries
from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated as of December 31, 2018 are thoseafter the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

7

Consolidated Statement of Cash Flows (Summary)(Unit: billions of yen)First half of FY
ended December
2018First half of FY
ending December
2019

Changes
year-on-year

Cash flows from operating activities

3.5

1.1

−2.3

Cash flows from investing activities

−0.2

−0.7

−0.4

Cash flows from financing activities

−3.9

−0.8

3.0

Translation adjustments

−0.5

−0.4

0.0

First half of FY
ended December
2018First half of FY
ending December
2019

Changes
year-on-year

Beginning balance

31.2

28.5

−2.7

Changes during the period

−1.2

−0.8

0.4

Ending balance

30.0

27.7

−2.3

Cash and cash equivalents

2019 Nishimoto Wismettac Group All rights reserved.

Notes
Accounts payable-trade decreased,
payment of income taxes increased

Repayments of short-term/long-termloans payable in the 1H

Notes

Operating CF −2.3, investing CF−0.4, financing CF +3.0

8

Supplementary explanation: Progress made in efforts to address issues<(Existing) Progress made in efforts to address short-term issues>
Segment

Main issues

Progress status

Asian Food
Global/North America

Profitability
improvements to
respond to the external
environment

・In response to rises in logistics-related expenses (including labor costs) and cost increases due to U.S.
tariff hikes on Chinese exports, negotiations are underway for price transfers and reduction of purchaseprices.
・Strict profit management at the individual customer level (continued)

Asian Food
Global/Other regions

Enhancement ofbusiness foundation

・The top line has been firm at 105% of the previous fiscal year’s results (110% on a weighted-average
local currency basis) as at the end of the first half of FY 2019.
・Efforts to expand the top line through the development of new customers will continue in the second halfand beyond.

Agricultural &Seafood
Products
Trading

Broad-based profit
improvements
Enhancement ofbusiness foundation

・In domestic sales, efforts will be made to offset the negative performance in 1H by promoting productswith the potential to increase demand and realize a higher profit margin.
・Efforts will be made to increase profit by further expanding overseas sales network (export of Japanese
food, intermediary trade).

<(New) Strategic expanses>
Area

Recruitment /new projects

Other

Progress status

North America:
Development of newsales channels

・A team in charge of developing new sales channels (such as local channels for commercial customers)has been organized and has started to work.

North America:
Logistics

・For the reconstruction of the logistics function in North America, multiple projects are underway to
improve the efficiency of logistics (delivery and warehousing works) by management-level personnel.

Contents and platform・Have already hired experts in the development of global supply chain solution contents.
・Will continue to work on product contents improvement and the recruitment of experts specializing ineach product area.
・Will also continue efforts to recruit human resources for the development of a platform management
structure in Europe and Asia.

Systems
Relocation of theheadquarters

・Systems: New systems for international trade administration and product standard management havestarted operations. Business processes will be streamlined as operation procedures will be revised.
・Headquarters relocation: Scheduled for September as initially planned.

2019 Nishimoto Wismettac Group All rights reserved.

9Forecasts of Operating Results
for the Fiscal Year Ending December 2019
Consolidated financial results forecast for the fiscal year ending December, 2019 were
unchanged from results released on February 14, 20192019 Nishimoto Wismettac Group All rights reserved.

Forecasts of Financial Results for the Fiscal Year Ending December 2019Net sales will increase 5.9% against the previous fiscal year. Asian Food Global Business will grow by 5.9%, and Agricultural &Seafood Products Trading Business will grow by 5.6%. The outlook for continued stable growth in net sales and gross profit
remains unchanged.

Operating profit will decline by 10.5% against the previous fiscal year. We are anticipating an increase in costs for the groupoverall from measures to prepare for changes in the external environment in the future.



We are anticipating decreases in net income attributable to parent company shareholders by 6.2%, amounting to 4.3-billion yen.
(Unit: billions of yen, Percentage to net sales is stated in parentheses)

FY ended December
2018
Full-year results*1
Net sales
Gross profit
Operatingresults

Operating income
Ordinary income

Net income attributable to ownersof parent
Percentage of North America(Net sales)
Group
Percentage of North America
KPI(Operating income)
ROWC *2
Yen/Dollar exchange rate
(Average rate during the period)
Net income per share

FY ending December 2019
First-half forecast

182.2

96.0

(100.0%)(100.0%)

31.8

16.4

(17.5%)(17.1%)

6.7

2.9(3.7%)(3.1%)

6.5

2.9(3.6%)(3.1%)

Changes yearon-year
+6.4%
+6.9%
−3.3%
−2.8%

Full-year forecast

Changes year-onyear

193.0

+5.9%

(100.0%)33.6(17.4%)

6.0(3.1%)

6.0(3.1%)−10.5%
−7.9%

4.6

2.1

(2.5%)(2.2%)

58.5%

—

—

57.9%

−0.6 pt

66.5%

—

—

76.8%

+10.3 pt

20.5%

—

—

17.4%

−3.0 pt

110.43 yen

110.00 yen+1.32 yen

110.00 yen−0.43 yen322.18 yen

148.27 yen−2.3%

302.20 yen

−6.2%

−2.3%

4.3

+5.7%

(2.2%)−6.2%*1) Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated subsidiaries
from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the first quarter of the fiscal year
ended December 2018 are those after the retroactive application.
* 2) Operating income / ((Working capital at the end of the previous fiscal year + Working capital at the end of the current fiscal year) / 2)2019 Nishimoto Wismettac Group All rights reserved.

11

Forecasts of Operating Results by Segment for the Fiscal Year ending
December 2019
Asian Food Global Business The Company will maintain stable growth (acquisition of new customers and expansion of sales from existing customers) in existing markets,
centered around the North American region with a focus on Japanese food, and engage in initiatives to further expand its business base inregions outside of North America.
 In the North American region, the Company will also strive to develop new sales channels (corporate accounts, etc.) for non-Japanese foods.

Agricultural & Seafood Products Trading Business The Company will protect net income by maintaining its business in the domestic wholesale market, while aggressively engaging in initiatives toexpand sales channels to volume sales, home meal replacements and eating-out, food manufacturers and overseas accounts.

Strategic Expenses associated with Group measures
 The Company anticipates an expenditure of 0.95-billion yen for costs associated with measures for the group overall.

Sales to external customers

Asia Food Global Business
Agricultural & Seafood
Products Trading Business
Other business
Total(Unit: billions of yen)

FY ended December
2018
Full-year results

First-half forecast

Changes year-on-year

Full-year forecast

Changes year-on-year

125.11

64.73

+6.9%

132.49

+5.9%

52.88

29.21

+5.0%

55.82

+5.6%

4.22
182.22

2.07
96.02+11.9%+6.4%

4.68
193.00+11.0%+5.9%

FY ending December 2019

Operating income
FY ended December
2018
Full-year results*

First-half forecast

Changes year-on-year

Full-year forecast

Changes year-on-year

5.40

2.50

−0.8%

5.61

+3.9%

1.03

0.63

+21.1%

1.07

+4.3%

0.25

0.05

+206.5%

0.25

−1.3%

—

−0.25

—

−0.95

—

6.70

2.95

−3.3%

6.00

−10.5%

Asia Food Global Business
Agricultural & Seafood
Products Trading Business
Other business
Strategic Expense forGroup Measures, etc.
Total

FY ending December 2019

* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated
subsidiaries from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the first quarterof the fiscal year ended December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

12

Supplement to Forecasts of Operating Results for Fiscal Year Ending
December 2019
The external
environment ischanging drastically

Increasing personnel and distribution costs, climate change
and the exploding population, volatile foodstuff costs, the tightening of food related regulations,changing consumer behavior, such as online purchasing, diversification and localization ofJapanese cuisine, logistics innovation and expanding IoT…

With these in mind, the Company will maintain growth in its existing businesses during the 2019business year while proceeding to implement measures for the future

Major Expenditure for Future Growth
Investment in the North American region (recruitment)• Experts in optimizing and strengthening distribution infrastructure, and human resources for developing new sales
channels (corporate accounts, etc.) (Inclusive of funds required to develop new sales channels)
Investments outside the North American region (recruitment)• Human resources for the formation of area management organization in the European, Asian and Chinese regions.
Investments in product content and platforms (recruitment and IT investment, etc.)• Experts in food products and foodstuffs to enhance product content, experts in food technology.
• Recruitment and investment to develop and strengthen platforms (the distribution and system infrastructure of the entire
group)
Relocation of the Tokyo office• Relocation of the Tokyo office is planned for the second-half of 2019. Consolidating the office space currently spread out
over 4 floors into a single floor should promote active communication; the integration of our workers, organization andproducts; and increased operational efficiency.
(The current lease of the Nihonbashi office is due to expire by November 2019.)

2019 Nishimoto Wismettac Group All rights reserved.

13

Factors of Changes in Operating Income for Fiscal Year Ending December 2019

Comparison toPrevious Period

North
America
MarginOther thanNorth America
Margin+0.31

Agricultural &Seafood
MarginOther
Margin(1)
Existing
Increases in
Sales &
Administration
Costs

+0.23

+0.06

−0.77

(2)
Strategic
Expenses for
Sales &
Administration
by Segment

−0.78

+1.18

• Margin, Comparison to Previous Period: 106%• Sales & Administration Costs, Comparison to Previous
Period: 110%(3)Group Strategic
Expenses for
Sales &
Administration

−0.95

↑
(ExistingExpenses)(Policy
Expenses)↓(Unit: billions of yen)

(Existing Sales & Administration Cost (1) alone accounts for
only 103% comparison to previous period)
Strategic Expenses

6.70

Hiring and expanding strategic talent (to set up North American
distribution infrastructure, develop new sales channels in North
America, develop area management, reinforce content andplatforms), IT investment, office relocation, etc.

6.00

• Strategic Expenses by Segment (2): expenses included in segment income& expenditure plan
• Group Strategic Expenses (3): expenses outside segment income & the
expenditure plan

FY ended December
2018 results

FY ending December
2019 forecast* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated
subsidiaries from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the firstquarter of the fiscal year ended December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

14

Medium-term Business Plan
(through FY ending December 2021)

2019 Nishimoto Wismettac Group All rights reserved.

Group’s Future Direction
Vision:A global solution company that resolves various global foodindustry issues to create and provide new value
Nishimoto Wismettac imports and sells foods composed mainly of fruits and vegetablesfrom all regions of the world. When Asian foods developed into widespread global foods,
our company catered to customer demand for them along with meeting the various needs
and requirements of customers in countries throughout the world.

We have evolved from a food trading company into an enterprise also equipped withfunctions that include growing fruits and vegetables along with planning, development,
logistics, sales and risk management of foods. Currently, we are in the process of building
an internal framework that can provide customers with external solutions including thenewest technologies in a variety of domains.
Nishimoto Wismettac will continue to evolve and grow as a new eco-platform company thatwill resolve customers’ needs and issues by using its own and its partners’ latest solutions.

2019 Nishimoto Wismettac Group All rights reserved.

16

Business Plan for FY 2021 (Including Numerical Targets)
Business plan for FY 2021
・・・After securing stable profit in existing businesses even as we face major changes in theexternal environment, Aim to establish an overwhelming business strength in multiple niche markets through ourbusiness portfolio (the combination of Contents and Platform), to create an organizationthat can continually reproduce it, and thereby to establish a foundation that will assure thesustainable growth of the Group.
 Boldly carry out investments and expenditure (mainly in human resources and systems) to
expand the functions of Contents, international trade administration, and Platform on a
global basis.

Numerical targets for FY 2021
FY 2021

270.0

Consolidated net sales 240.0 billion yen

Consolidated operating income 8.0 billion yen
Consolidated operating income after
subtracting human resources expenditure

Sales growth(Unit: billions of yen)

240.0
240.0

210.0
193.0

6.5 billion yen 180.0

182.2* Based on an estimated exchange rate of 110 yen/USD
150.0
2018/122019/122020/122021/12(Interpolated)2019 Nishimoto Wismettac Group All rights reserved.

17

Business Environment (Changes in the External Environment)
The external environment surrounding Wismettac is undergoing changes of an unprecedented scale
Opportunity: Expansion of markets for eating out,
home meal replacements, and home cooking
Opportunity: Competitive advantage based on
digitalization and labor-saving technology

Increasing diversity
and localization ofJapanese foodRisingpersonnel
and logistics
expenses

Tighterfood
regulations

Opportunity: Increasingly diverse
customer preferences

Opportunity: Innovation in all supply chain areas

Changes in consumer
behavior such as Internet
shopping, home meal
replacement, and healthconsciousness

Opportunity: Plant factory cultivation,
onshore aquaculture

Fluctuations
in food costs

Opportunity: Tighter European food safety standards andregulations, traceability, in addition to the possibility of
direct harm → Effective responses will lead todifferentiation (and possible disappearance of peers
through selections)

Digitalization(new logistics
technology)

External
environment
Globaldisinflation
trend

Opportunity: Aging population in developed
countries and urban population increase

Demographic
changes→ For Wismettac as a global solutions company, all changes represent business opportunities.
2019 Nishimoto Wismettac Group All rights reserved.

18

Wismettac to Date Since the 1990’s
Strengths in the Asian Food Global BusinessStable profit in the Asian
Food Global Business
Source of profit
Strong presence and high market share of the
Asian food Global Business in North America
Factors that support the high market share<Sales function>
Sales reps visit customers
directly<In-house delivery
function><Product development
function>

Has in-house delivery
function for delivery toindividual restaurants

Strength in products(particularly private brandproducts) and procurement<Operating bases
covering entire North
America>
Expanded the network ofoperating bases as the Japanesefood market expanded<Competitiveenvironment>
Relatively few competitors
as we focus on a nichemarketFood safety/legal compliance

Sources of the strengths in the Asian Food Global Business: Five factors ∔ FS
We need to proactively change this business model amid major changes
in the external environment2019 Nishimoto Wismettac Group All rights reserved.

19

Future Outlook (Next 10+ Years)

Outlook of the Asian Food Global Business in North America
A sense of urgency that if we do not carry out a reform now, we may be headed for a decline→ We can step up to a new growth stage be getting the reform on track<Sales function><In-house delivery
function>

Sales reps visit
customers directly

Has in-house delivery
function for delivery toindividual restaurants<Productdevelopment
function><Operating bases
covering entire North
America>Strength in products(particularly private brandproducts) and procurement

Expanded the network ofoperating bases as the Japanesefood market expanded<Competitiveenvironment>
Relatively few competitors as
we focus on a niche market

Changes in the business environment→ It may become difficult for us to maintain and improve our strengths

Delivery efficiency
improvement andincreasing relianceon EC in sales

Digitalization

Further
improvement in thestrength of our
products and local
production

Radical efficiency
improvement

Selection bycustomers heading
for the final stage

Further profitability increase in the Asian Food Global
Business in North America
2019 Nishimoto Wismettac Group All rights reserved.

20

Realignment of the Group’s Basic Structure<Basic form>

Own

Needs of thefood industry

platform

Own
Solution
systemStart-up,carve-out, etc.

Contents

Own
International
trade
Business
systems(sales, logistics)

Other companies’
platform

External
sales

External
sales

Business operations (adoption of SOPs, digitalization)
Sales, logistics, and administration platforms developed/improved on a global andregional basis
Solution system:

In-house function to solve the needs of the food industry using new technologies, business models,and intellectual property

Platform:

Provide sales, service, logistics, and administration functions in five major regions in the world

International trade:

Provide cross-border administration functions in general (trade, ship chartering, insurance,
regulations, etc.)

Business operations: Promote digitalization and rationalization of the entire supply chain, functions, and intragrouptransactions

Global human resources are the key for strengthening the functions of eachorganizational entity
2019 Nishimoto Wismettac Group All rights reserved.

21

Contents & Platform Development
Global human resources are the key for strengthening thefunctions of each organizational entity

Contents development scheme Strengthen contents for the deeper exploitation of existing markets and the development of new markets to develop
multiple business portfolios on an ongoing basis → Aim to achieve a quasi-monopoly in niche markets

Wismettac Solution HUB<Contents><Contents><Contents>

Aqua

Agri

(Aquaculture)(Agriculture)

Processed
food<Contents>

Food industryrelated
New technology

Business operations including international trade
Sales (EC)

Logistics
Management

Start with thedevelopment of new
products and new sales
networks in the North
American market

ERP
Common philosophy, knowhow, technology, and intellectual property shared within the Group

Platform
2019 Nishimoto Wismettac Group All rights reserved.

22

Contents & Platform Development
Platform development scheme

Global human resources are the key for strengthening thefunctions of each organizational entity

 Build a platform for each of the five geographic regions to ensure a more intimate approach to local markets
and speedy management.
 Deploy high value-added contents both on a global and regional basis using our ability to ascertain customer
needs based on our close relationships with them, ultimately to develop them into a business portfolio.
 Construct a more advanced commercial flow and logistics by, for example, achieving an efficient global/regional
combination based on digitalization and accumulation of knowledge.

EuropeChina

North America
Japan

Southeast Asia

2019 Nishimoto Wismettac Group All rights reserved.

23

Numerical Targets for FY 2021

Numerical targets for FY 2021
 Consolidated net sales 240.0 billion yen
 Consolidated operating income
8.0 billion yen
 Consolidated operating income after subtracting
human resources expenditure 6.5 billion yen
Figures shown above include the following
forecasts for new businesses in North
America as per FY 2021 plan

Net sales

270.0

Sales growth
240.0

240.0

4.3 billion yen
210.0

Operating income

193.0

0.2 billion yen

182.2
180.0

150.0
2018/122019 Nishimoto Wismettac Group All rights reserved.

2019/122020/122021/1224

Sales plan by location of group companies for FY 2021
(Unit: billions of yen)

FY ended
December 2018

North America

FY ending
December 2019

FY ending
December 2021

Full-year
results

Percentage
of total

Full-year
forecast

Percentage
of total

Full-year
plan

Percentage
of total

106.6

58.5%

111.8

57.9%

124.3

51.8%

*
Europe

6.2

3.4%

6.9

3.6%

28.6

11.9%

Asia/Australia

9.7

5.3%

10.5

5.5%

14.6

6.1%

Japan

59.6

32.7%

63.7

33.0%

72.4

30.2%

Total

182.2

100%

193.0

100%

240.0

100%

* Sales in Europe for FY 2021 reflect the planned change inthe consolidation scope of subsidiaries accounted for underthe equity method scheduled to be completed by the end of
FY 2020.
2019 Nishimoto Wismettac Group All rights reserved.

25

Human Resources Expenditure
We will actively hire experts and management-level human resources to expand
the existing businesses and drastically reform our business model.
“Human resources expenditure”
・・・Human resources expenditure that is not accounted for as segment
expenses. It is recognized as a group overhead expense and then allocated toeach segment based on actual job responsibilities.
Estimated amount of expense: Approximately 2,500 million yen for FY 2020–2021(Expected areas of human resources expenditure)
Category

Job category and responsibility

Platform

A staff team in charge of the digitalization of the platform andincreases in expertiseContents

The global head and the development team in charge of productand solution development

Group overhead

Construction of a management structure and revision of thecompensation system from the global company perspective

2019 Nishimoto Wismettac Group All rights reserved.

26

Policy of Returning Profits to Shareholders

2019 Nishimoto Wismettac Group All rights reserved.

Policy of Returning Profits to Shareholders
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 the future and to improve its
financial strength.
The Company plans to pay dividends twice a year (interim and year-end).

 The annual dividend forecast for the fiscal year ending December 2019 is 95 yen (forecasts of a 40
yen interim dividend and a 55 yen year-end dividend).

Dividend per share(yen)

95 yen95 yen55
Year-end
dividend

55
Year-end
dividend

40
Interimdividend

40
Interimdividend

FY ended December
2018 (Results)

FY ending December 2019
(Forecast)

100

75

50

25

0

2019 Nishimoto Wismettac Group All rights reserved.

28

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 name2019 Nishimoto Wismettac Group All rights reserved.

<Wisdom>(Western knowledge)<Metta>(Eastern knowledge)(Metta means kindness or empathy in Pali,an ancient 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

Onward Park Building, 3-10-5 Nihonbashi, Chuo-ku, Tokyo

EstablishedMay 1912

Representative directors

Yoshiro Susaki, Chairman & CEO, Takayuki Kanai, President & COO

Number of Employees

1,676(including 1,404 in the Asian Food Global Business) [As of December 31st, 2018.]
 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
10 subsidiaries, 5 affiliates
47 worldwide (including 23 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

182.2 billion yen (FY ended December 2018)

Ordinary income

6.5 billion yen (FY ended December 2018)

Shareholders’ equity ratio

2019 Nishimoto Wismettac Group All rights reserved.

* Overseas sales ratio 67.3%

61.5% (FY ended December 2018)30

Nishimoto Wismettac: Domestic and Overseas Business Sites
 Developing businesses worldwide with 47 global locations
 23 locations in the North American region (the U.S. and Canada)
13 COMPTOIRS DES 3 CAPS SARL・COMPTOIRS OCEANIQUES| ・CAP CAVALLY
16 ・TROPIC FISH
12 SSP Konsumgüter TRADE & CONSULT GmbH

Calgary Office

10 Harro Foods Limited

Denver Office
Asian Foods,
4 Wismettac
Inc. (Canada)

1 Nishimoto Co., Ltd.
WF Seoul Representative Office

2 Wismettac Foods, Inc.

7 NTC Wismettac Europe B.V.
8
WF Paris Representative Office

San Francisco Office

9 Shanghai IPM Co., Ltd.

Wismettac Asian Foods,

3 Inc.

11 Nippon Foods Co., Ltd.

WF Bangkok Representative Office

Seattle Office
Sacramento Office

Wismettac Foods
Shanghai Co., Ltd.

WF Ho Chi Minh Representative Office

Las Vegas Office

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

Hawaii OfficeMiami Office

WF Kobe Office
San Diego Office

WF Kobe Branch
WF Naha Representative 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”

2019 Nishimoto Wismettac Group All rights reserved.

31

Major Business Segment: Asian Food Global Business Distribution of Asian food ingredients and food products with a focus on Japanese food around the world,
centered on North America. Successful implementation of its own integrated operations from productdevelopment and planning through to sales and distribution.
←Compliance with related laws and regulations→
Product development
and planning

Developing new
private brandproducts
and expanding
the private brandrange

Purchasing andProcurement

Customs
Clearance

Wide rangeof sourced
products anddiversesupplier base(about 8,000 items)“Shirakiku”
accounts forabout 40%in terms of sales(North Americanbusiness
performance, 2018)

Storage

Sales

Sortingand delivery

Logistics capabilities and systems

 Select the best producing region throughout the world Working with producers to develop products tailoredto customer needs
 Implementing production and quality control systems
that comply with local regulations

Marketing network
and North
Americanbusiness locations(23 locationsin North America)(37 locations
globally)

Developing products in line with customer needs

2019 Nishimoto Wismettac Group All rights reserved.

32

(Reference) Product Portfolio of the Asian Food Global Business
We import and procure Asian food products and ingredients, with a focus on Japanese food, including fromthe U.S., Japan, China and South East Asia, and distribute approximately 8,000 items on a global basis,principally in North America.

Main Products

Chopsticks,
containers, etc.

Alcohol

Rice

Confectionery
Agricultural
products

Seafood products

Sauces andseasoning

Processed
food products

2019 Nishimoto Wismettac Group All rights reserved.

33

Major business segment: Agricultural & Seafood Products Trading Business Imports and sales, with a focus on fresh fruits and vegetables in the Japanese market.
 As the sole import agent of Sunkist Growers Inc., in Japan, we maintain high market share of imported
citrus. In particular, our market share* of lemon is about 50% and of orange is about 30%.

Main Products
Seafood
Domestic
market share:roughly 50%

Seafood

Frozen Fruit andVegetables,
Canned Goods etc.

Frozenstrawberries

Other

Citrus fruit

Other
Other

LemonsPineapples
BananasOrangesBananasDomestic
market share:roughly 30%

Other
Grapefruit

Asparagus
Peppers

Other

Other

Vegetables

Avocados

GrapesCherries

Tropical fruit

Kiwi
fruit

* In-house company calculation based on Ministry of Finance trade statistics
2019 Nishimoto Wismettac Group All rights reserved.

34

Disclaimer
These materials are intended to provide financial information, management information, etc., of Nishimoto Co.,
Ltd. and its affiliated companies (hereinafter collectively referred to as “the Company”), but the Company
makes no representation or warranty regarding the content of these materials.
The plans, strategies, operating results forecasts, etc., of the Company in these materials may include
information on forward-looking statements, which are based on information currently available to the Company,
and include risks and uncertain elements in relation to economic trends, competition in the industry, market
demand, foreign exchange rates, taxation system, various systems, etc. Therefore, actual operating resultsthat will be published in the future may differ due to these elements, and the Company does not assume any
liability for any damage arising from the use of information in these materials. Furthermore, the Company isunder no obligation to revise and publish future forecasts in these materials based on new information or future
events.
The Company pays close attention when preparing these materials; however, if there are any errors in theinformation presented, falsification of data by a third party, or any failure arising from download of data, etc.,
the Company does not assume any liability for any damage caused by such actions for any reason
whatsoever. We appreciate your understanding regarding this matter.
The information in these materials is not intended to solicit investments. When any investment is actuallymade, please refrain from completely relying on the information in these materials to make an investment
decision, and make the decision based on your own judgment.
[Contact]
Nishimoto Co., Ltd.
Corporate Planning Dept.
TEL: 03-6870-20152019 Nishimoto Wismettac Group All rights reserved.