Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2018
(Japanese GAAP)
November 14, 2018
Company name:Nishimoto Co., Ltd.
Listed exchange:
Tokyo
Code:
9260
URL: http://www.wismettac.com/
Representative:
Takayuki Kanai, President
Contact:
Atsuhiko Kimura, Director and CFO(Phone) 03-6870-2015
Scheduled date of filing of quarterly report:
November 14, 2018
Scheduled date of commencement of dividend payments:－
Preparation of supplementary materials for quarterly financial results:
Yes
Holding of quarterly financial results presentation meeting:No(Amounts are rounded down to the nearest million yen)

1. Consolidated financial results for the third quarter of the fiscal year ending December 31, 2018(from January 1, 2018 to September 30, 2018)(1) Consolidated results of operations (cumulative)
Net sales

Operating income

Million yen%%

Million yen%

Million yen%

Third quarter of FY ending December 31, 2018
135,548
5.1
4,783 (0.8)
Third quarter of FY ended December 31, 2017
128,995
4,820－－(Note) Comprehensive income
Third quarter of FY ending December 31, 2018: 3,502 million yen (115%)
Third quarter of FY ended December 31, 2017: 1,625 million yen (–%)

4,787
4,468

7.1
－

3,380
2,359

43.3
－

Net income per
share
Third quarter of FY ending December 31, 2018
Third quarter of FY ended December 31, 2017

Million yen(Percentages denote year-on-year changes)
Profit attributable toOrdinary income
owners of parent

Diluted net income
per share

Yen

Yen

235.53188.55－－(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of September 30, 2018 (FY 2018 3Q)
84,291
As of December 31, 2017 (FY 2017)84,336(Reference)
Shareholders’ equity
Third quarter of FY ending December 31, 2018:
FY ended December 31, 2017:

51,67749,75361.3
59.0

51,677 million yen
49,753 million yen

2. Dividends
First quarterend

Secondquarter-end

Yen

Yen

Annual dividends
Third quarterend

FY ended December 31, 2017－
0.00
FY ending December 31, 2018－
40.00
FY ending December 31, 2018 (Forecast)(Note)
Revision to the forecast for dividends announced most recently: None―1―Year-end

Total

Yen

Yen

Yen

－
－

70.00

70.00

55.00

95.00

3. Consolidated financial results forecast for the fiscal year ending December 31, 2018(from January 1, 2018 to December 31, 2018)
Net sales
Million yen

Operating income%

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

Million yen

%

Yen

4,664

52.1

324.98FY ending December
184,814
7.4
6,775
7.1
6,681
12.9
31, 2018(Note)
Revision to the forecast for financial results announced most recently: None

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

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

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

Changes in accounting policies other than (i) above:

None

(iii)

Changes in accounting estimates:

None

(iv)

Restatements:

None(4) Number of shares outstanding (common stock)(i) Number of shares outstanding at the end of
the period (including treasury shares)(ii) Number of treasury shares at the end of theperiod(iii) Average number of shares during the period(nine months ended September 30, 2018)
*
*

None

As of September
30, 2018

14,353,140 shares

December 31,
2017

14,353,140 shares

As of September
30, 2018

67 shares

December 31,
2017

36 shares

As of September
30, 2018

14,353,082 shares

September 30,
201712,513,569 shares

The quarterly financial results are not subject to the quarterly reviews by public accountants and auditors.
Explanation of the proper use of financial results forecasts and other notes(Notes on forward-looking statements)
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 the achievement 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) Explanationof future forecasts such as consolidated financial results forecasts” under the chapter titled “1. Qualitative information onquarterly financial results” on the attachment.
(How to obtain the supplementary materials for the quarterly financial results)
The supplementary materials for the quarterly results are scheduled to be disclosed on TDnet on Wednesday, November 14,
2018, and posted on the Company’s website.

―2― Attachment: Table of Contents

1. Qualitative information on quarterly financial results .............................................................................................. 4(1) Explanation of operating results ........................................................................................................................ 4(2) Explanation of financial position ....................................................................................................................... 5(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) Notes to the quarterly consolidated financial statements ................................................................................... 9(Notes to assumption of going concern) ............................................................................................................ 9(Notes on significant changes in shareholders’ equity) ...................................................................................... 9(Application of an accounting treatment specific to the preparation of the quarterly consolidated
financial statements) .......................................................................................................................................... 9(Segment information) ..................................................................................................................................... 10―3―

1. Qualitative information on quarterly financial results(1) Explanation of operating results[Outline of the first nine months of the fiscal year]
During the first nine months of the fiscal year ending December 31, 2018, the overall world economy continued in its ongoingmoderate recovery. However, the future prospects still remain uncertain, such as due to the economic outlook of China andother emerging markets in Asia, the uncertainty regarding governmental policies in each country, and the impact on the global
economy of developments in trade issues.
Meanwhile, the overall Japanese economy kept on its moderate recovery track as corporate business results and theemployment situation improved.
In this situation, the Group companies have been striving to improve performance, with the main lines of business being the
Asian Food Global Business, which sells Japanese food products and other Asian foodstuffs and ingredients mainly to North
America and countries and regions such as Europe, China, Southeast Asia, and Australia, and the Agricultural & Seafood
Products Trading Business, which sells fruits and vegetables and also seafood, mainly to the domestic market and countries
and regions such as China and Southeast Asia.

The Asian Food Global Business has been proactively cultivating the market to expand its business platformin regions other than North America as one of the Group companies’ growth strategies, in addition to thegrowth in the North America region. The Agricultural & Seafood Products Trading Business has been
expanding other sales channels, such as mass retailers and the restaurant and home-meal replacement
industries, as well as overseas markets, including the export of Japanese fruits and vegetables, thearrangement of offshore trade in fruits and vegetables, and the wholesale business in China, in addition to the
key sales channels in the wholesale market.
As a result, net sales for the Third Quarter (the cumulative results for the first 9 months of the fiscal year, same below) were
135,548 million yen, a 5.1% increase year-on-year, and operating income was 4,783 million yen, a 0.8% decrease year-on-year.
Ordinary income was 4,787 million yen, a 7.1% increase year-on-year, and the quarterly net income attributable to owners ofparent was 3,380 million yen, a 43.3% increase year-on-year.
Operating results by segment are as follows: Note that net sales by segment reflect net sales to external customers.

[Outline of operating results by segment](i) Asian Food Global BusinessIn the results of the Asian Food Global Business for the Third Quarter, net sales were 91,945 million yen, a 5.2%
increase year-on-year, and operating income was 3,778 million yen, a 15.1% decrease year-on-year.
Although net sales in the North American region increased steadily, profits decreased due to rises in purchase price, such as
rice, a basic food item, and an increase in expenses in the logistics department, including for labor costs and gasoline costs,
which continued from the previous fiscal year. The North America business intends to work on increasing profitability byfurther strengthening efforts for structural changes that it has been implementing since the past, including to improve the profit
margin and keep down logistics expenses.

Sales and profits increased in the regions outside of North America due to the steady growth in acquiring newcustomers and expanding sales from existing customers, as well as the progress made in the expansion of thebusiness platform.
(ii) Agricultural & Seafood Products Trading BusinessIn the results of the Agricultural & Seafood Products Trading Business for the Third Quarter, net sales were 40,820 million
yen, a 4.6% increase year-on-year, and operating income was 942 million yen, a 176.1% increase year-on-year.
Net sales increased due to favorable sales of avocados and small-sized apples for overseas markets. This business achieved anincrease in sales and profits due to the recovery in sales of citrus fruits and tropical foods for the domestic market, which
struggled in the same period in the previous year.
(iii) Other businesses
In the results of the other businesses for the Third Quarter, net sales were 2,782 million yen, a 7.7% increase year-on-year, andoperating income was 49 million yen, compared to an operating loss of 7 million yen in the same period in the previous year.

―4―Both sales and profits increased due to the growth in sales of seasonal goods for the domestic market, as well as of character
goods.

(2) Explanation of financial position(Assets)
Total assets as of September 30, 2018, stood at 84,291 million yen, a decrease of 45 million yen compared to December
31, 2017, which was mainly attributable to the following.
Total current assets as of September 30, 2018 were 76,140 million yen, an increase of 477 million yen compared to
December 31, 2017, which was because the increase of 1,421 million yen in inventories exceeded the decrease of 810
million yen in cash and deposits.
Total non-current assets as of September 30, 2018, came to 8,150 million yen, a decrease of 522 million yen compared to
December 31, 2017, which was due to decreases of 300 million yen in buildings and structures (net amount) and of 244
million yen in customer-related assets.
(Liabilities)
Total liabilities as of September 30, 2018, stood at 32,614 million yen, a decrease of 1,969 million yen compared to
December 31, 2017, and was mainly attributable to the following.
Total current liabilities as of September 30, 2018, amounted to 20,869 million yen, an increase of 1,220 million yen
compared to December 31, 2017, which was mainly because the increases of 1,967 million yen in notes and accounts
payable—trade and 4,004 million yen in income taxes payable exceeded the decrease of 1,538 million yen in short-termloans.
Total non-current liabilities as of September 30, 2018 came to 11,745 million yen, a decrease of 3,189 million yen
compared to December 31, 2017, which was caused by a decrease of 3,204 million yen in long-term loans payable.
(Net assets)
Total net assets as of September 30, 2018 stood at 51,677 million yen, an increase of 1,923 million yen compared to
December 31, 2017, which was due mainly to an increase of 1,801 million yen in retained earnings.

(3) Explanation of future forecasts such as consolidated financial results forecasts
Forecasts of financial results for the fiscal year ending December 31, 2018, are described in the Consolidated Financial Results
for the Fiscal Year Ending December 31, 2017 (Japanese GAAP) published on February 14, 2018. The forecasts remainunchanged.

―5―

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet(Millions of yen)
FY 2017(As of December 31, 2017)

Third quarter of FY 2018
(As of September 30, 2018)

Cash and deposits

31,30330,493

Notes and accounts receivable—trade

18,816

18,846Inventories

23,18524,607

553

526

Other

2,066

1,928

Allowance for doubtful accounts

(262)

(262)

75,66376,140

2,455

2,154

Machinery, equipment and vehicles, net

451

407

Tools, furniture and fixtures, net

105

84

Leased assets, net

246

204

Other, net

280

270

3,538

3,121

Goodwill

760

707

Software

195

174

1,174

929

114

245

2,245

2,055

Investment securities

1,303

1,330

Guarantee deposits

365

361

Deferred tax assets

484

571

Other

762

735

Allowance for doubtful accounts

(26)

(26)

Total investments and other assets

2,889

2,972

8,673

8,150

84,336

84,291

AssetsCurrent assets

Deferred tax assets

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Total property, plant and equipment
Intangible assets

Customer-related assets
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets―6―

(Millions of yen)
FY 2017(As of December 31, 2017)

Third quarter of FY 2018
(As of September 30, 2018)

Notes and accounts payable—trade

9,959

11,926

Short-term loans payable

4,935

3,396

Current portion of long-term loans payable

151

148

Lease obligations

60

56

2,322

2,400

Income taxes payable

195

600

Provision for bonuses

525

511

Provision for shareholders’ benefits

－

17

Other

1,497

1,810

Total current liabilities

19,64820,86912,6129,408

Lease obligations

191

151

Deferred tax liabilities

221

166

Provision for directors’ retirement benefits

494

543

1,007

1,079

406

395

14,934

11,74534,58332,614

Capital stock

2,646

2,646

Capital surplus

6,531

6,531

Retained earnings

39,17340,975(0)(0)

48,35150,152

15

13

8

14

Foreign currency translation adjustment

1,378

1,496

Total accumulated other comprehensive income

1,402

1,524

49,75351,677

84,336

84,291

Liabilities
Current liabilities

Accounts payable—otherNon-current liabilities
Long-term loans payable

Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation
securities

differenceonavailable-for-sale

Deferred gains or losses on hedges

Total net assets
Total liabilities and net assets―7―

(2) Quarterly consolidated statements of income and comprehensive income

Quarterly consolidated statement of income
First nine months ending September 30, 2018
(Millions of yen)First nine months of FY 2017
(January 1, 2017 to
September 30, 2017)

First nine months of FY 2018
(January 1, 2018 toSeptember 30, 2018)

Net sales

128,995

135,548

Cost of sales

106,953

112,201

Gross profit

22,041

23,347

Selling, general and administrative expenses

17,221

18,563Operating income

4,820

4,783

Interest and dividend income

72

103

Share of profit of entities accounted for using
equity method

29

2Insurance income

1

174

Other

16

32

Total non-operating income

119

313

Interest expenses

148

128

Listing-related expenses

99－

Foreign exchange losses

221

123

1

57

471

309

4,468

4,787

－

–

Impairment loss

514–

Total extraordinary losses

514–

Profit before income taxes

3,954

4,787

Income taxes—current

1,695

1,518

Income taxes—deferred

(100)

(112)

Total income taxes

1,594

1,406

Net income

2,359

3,380

－

–

2,359

3,380

Non-operating income

Non-operating expenses

Other
Total non-operating expenses
Ordinary income
Extraordinary income
Total extraordinary income
Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent―8―

Quarterly consolidated statement of comprehensive income
First nine months ending September 30, 2018
(Millions of yen)First nine months of FY 2017
(January 1, 2017 to
September 30, 2017)

First nine months of FY 2018
(January 1, 2018 toSeptember 30, 2018)

2,359

3,380

1

(1)

Deferred gains or losses on hedges

(35)

6

Foreign currency translation adjustment

(792)

143

93

(25)

(733)

122

1,625

3,502

Comprehensive income attributable to owners ofparent

1,625

3,502

Comprehensive income attributable to non-controllinginterests－–

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

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)(3) Notes to the quarterly consolidated financial statements(Notes to assumption of going concern)
No relevant items.

(Notes on significant changes in shareholders’ equity)
No relevant items.

(Application of an accounting treatment specific to the preparation of the quarterly consolidated financial
statements)
Calculation of tax expenses
The tax expenses of some of non-Japan consolidated subsidiaries were calculated by multiplying quarterly net income
before taxes by the relevant estimated effective tax rate, which was reasonably estimated as the rate after the application oftax effect accounting to net income before taxes for the fiscal year including the third quarter of the fiscal year.

―9―

(Segment information)
I

First nine months of the fiscal year (from January 1, 2017 to September 30, 2017)
1.

Information related to net sales and profits/losses by reporting segment(Millions of yen)
Reporting segment
Asian Food
GlobalBusiness

Agricultural &Seafood
Products
Trading
Business

Other business

Total

Adjustments(Note 1)

Amounts
recorded in thequarterly
consolidated
statement ofincome(Note 2)

Net sales
Sales to external customers

87,37739,033

2,584

128,995－

128,995

Intersegment sales or transfers

7,175

267

－

7,443

(7,443)－

Total

94,55339,301

2,584

136,439(7,443)

128,995

4,449

341

(7)

4,783

36

4,820

Segment profits (losses)(Note)

1. The adjustment amount of 36 million yen to segment profits (losses) includes the elimination of intersegment transactions of(negative) 98 million yen and the profit and loss of all Group companies, or the net amount of profit and loss of all Group
companies, of 135 million yen that are not allocated to each reporting segment. The profits of all Group companies mainly consistof dividend income from each reporting segment, and the expenses of all Group companies mainly consist of generaladministrative expenses that are not attributable to any reporting segment.
2. The segment profits (losses) are adjusted with operating income in the quarterly consolidated statement of income.

2.

Information related to impairment loss of non-current assets and goodwill by reporting segment
In the Asian Food Global Business segment, we reviewed the use of some customer-related assets. As a result, regarding
the business-use assets of a Hong Kong subsidiary for its import and wholesale of Japanese ingredients and food products,
we estimate that the recoverable amount is nil and will record it as an impairment loss.
The said impairment loss was 514 million yen, which was recorded in the Third Quarter (nine months) of the previous
fiscal year.

II First nine months of the fiscal year (from January 1, 2018 to September 30, 2018)
1.

Information related to net sales and profits/losses by reporting segment(Millions of yen)
Reporting segment
Asian Food
GlobalBusiness

Agricultural &Seafood
Products
Trading
Business

Other business

Total

Adjustments(Note 1)

Amounts
recorded in thequarterly
consolidated
statement ofincome(Note 2)

Net sales
Sales to external customers

91,94540,8202,782

135,548－

135,548

Intersegment sales or transfers

7,074

139

－

7,213

(7,213)－

Total

99,02040,9592,782

142,762(7,213)

135,548

3,778

942

49

4,770

13

4,783

Segment profits(Note)

1. The adjustment amount of 13 million yen to segment profits include the elimination of intersegment transactions of (negative)
1,215 million yen and the profit and loss of all Group companies, or the net amount of profit and loss of all Group companies, of
1,229 million yen that are not allocated to each reporting segment. The profits of all Group companies mainly consist of dividend
income from each reporting segment, and the expenses of all Group companies mainly consist of general administrative expenses
that are not attributable to any reporting segment.
2. The segment profits are adjusted with operating income in the quarterly consolidated statement of income.

2.

Information related to impairment loss of non-current assets and goodwill by reporting segment
No relevant items.

―10―