Making people’s lives around the world richer through foodNishimoto Co., Ltd.
Financial Results Supplementary Materials for theFirst Quarter of the Fiscal Year Ending December 2018

May 14, 20182018 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the First Quarterof the Fiscal Year Ending December 20182018 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the First Quarter of the Fiscal Year EndingDecember 2018Net sales of the Asia Food Global Business increased 3.0% year-on-year and net sales of the Agricultural & Seafood Products
Trading Business increased 12.6% year-on-year. Total net sales increased 5.9% from a year earlier to 42.8 billion yen, which
is mostly as originally planned.
Operating income for the Asia Food Global Business (excluding the North American region) and the Agricultural & Seafood
Products Trading Business increased from the previous year, but operating income for the North American region decreased by0.37 billion yen. As a result, total operating income decreased 1.0% year-on-year, to 1.6 billion yen, which exceeded theoriginal plan.
The impact of exchange rates (the yen appreciated against the US dollar by 5.34 yen from the previous year) when convertingto yen for consolidation purposes was negative 1.2 billion yen in terms of net sales and 0.05 billion yen in terms of operating
income compared to the same period of the previous year.
Quarterly net income increased 24.8% year-on-year to 1.1 billion yen, reflecting a reduction in the U.S. corporate tax rate,
which exceeded the original plan.
(billions of yen; percentage to net sales is stated in parentheses)

FY ended December2017
First quarter results *1Net sales
Gross profit
Operatingresults

Operating income
Ordinary income

Net income attributable to ownersof parent
Yen/Dollar exchange rate
(Average rate during the period)
Quarterly net income per share *2

FY ending December 2018
First quarter results

40.4

42.8

(100.0%)(100.0%)7.4

7.7(18.4%)(18.1%)

1.6

1.6(4.1%)(3.8%)

1.5

1.5(3.9%)(3.6%)

Changes year-on-year
+5.9%
+4.0%
-1.0%
-2.9%

0.8

1.1

(2.2%)(2.6%)

113.64 yen

108.30 yen-5.34 yen

71.74 yen

77.91 yen

＋8.6%

+24.8%（*1） Although the quarterly consolidated financial statements were not disclosed for the first quarter of the fiscal year ended December 2017, the figures in the “QuarterlyReport for the New Listing Application (First Quarter of the 71st Fiscal Year)” were indicated.
（*2） The Company carried out a five-for-one common stock split on June 1, 2017. Quarterly net income per share was calculated on the assumption that the stock split has
been conducted at the beginning of the fiscal year 2016.
The average number of shares during the period for the calculation of the quarterly net income per share was 12,493,240 shares in the first quarter of the fiscal yearended December 2017 (taking the stock split into consideration) and 14,353,100 shares in the first quarter of the fiscal year ending December 2018.

2018 Nishimoto Wismettac Group All rights reserved.

2

Operating Results by Segment for the First Quarter of the Fiscal Year Ending
December 2018
[Asia Food Global Business]
 Net sales increased 3.0% from a year earlier, to 29.86 billion yen, due to development of new customers and boosting
existing customers in the North American region and other regions (1.7% increase from a year earlier in North America [6.7%increase on a local currency basis] and 11.5% increase year-on-year in other regions on a consolidated yen basis).
Operating income decreased 13.6% year-on-year, to 1.33 billion yen, due to the increase in selling, general andadministrative expenses in North America, which has been continuing from the previous year. In North America, the structuralreform (improvement in the profit margin and decrease in logistics expenses), which has been underway, will be further
accelerated and bolstered. In other regions, both net sales and income increased year-on-year, hence the business base has
been expanded.

[Agricultural & Seafood Products Trading Business]
Net sales increased 12.6% year-on-year, to 11.8 billion yen, due to the increase in sales of fruits and vegetables as well as
overseas sales.

Operating income increased 149.6% year-on-year, to 0.26 billion yen, due to a recovery in sales of citrus fruits and tropicalfood items, which have experienced difficulties in the previous year.

Sales to external customers(billions of yen)First Quarter of FY ended
December 2017 results
Asia Food Global Business
Agricultural & Seafood Products
Trading Business
Other business
Total

FY ending December 2018
First Quarter results

Changes year-on-year

29.00

29.86

+3.0%

10.47

11.80

+12.6%

0.96
40.44

1.14
42.81

+19.5%+5.9%

Operating income
First Quarter of FY ended
December 2017 results
Asia Food Global Business
Agricultural & Seafood Products
Trading Business
Other businessTotal
2018 Nishimoto Wismettac Group All rights reserved.

FY ending December 2018
First Quarter results

Changes year-on-year

1.54

1.33

-13.6%

0.10

0.26+149.6%

0.01
1.66

0.07
1.64

+351.9%-1.0%
3Operating Income for the First Quarter of the Fiscal Year Ending December 2018
(Compared to the same period in the previous year)[Exchange rate (US Dollar)]
1Q of FY 2017: 113.64 yen
1Q of FY 2018: 108.30 yen

NorthAmerica-0.32

Other thanNorth America

Agricultural &Seafood
ProductsTrading
Business+0.15

Other＋0.06

Adjustment for
consolidation-0.02

FX (NorthAmerica)-0.05(billions of yen)

+0.16

1.66

[Supplementary note regarding North America]
Although operating income for the first quarter was almost according to plan ona local currency basis, it decreased by 0.32 billion yen from the previous year.
Following are two main negative factors:(1) Expenses of the logistics department including personnel expenses
increased (continued from the previous year)

1.64(2) In the same period of the previous year, prices were raised in anticipationof rising costs of rice, laver, etc. Therefore operating income temporarilyincreased. Subsequently, the profit margin returned to the normal level
due to an increase in the costs of rice, laver, etc.
1Q of FY ended
December 2017 results

2018 Nishimoto Wismettac Group All rights reserved.

1Q of FY ending
December 2018 results4Forecast of Operating Results
for the Fiscal Year Ending December 2018
* Forecast of operating results have not been changed from the figures disclosed on February 14, 2018.

2018 Nishimoto Wismettac Group All rights reserved.

Forecast of Financial Results for the Fiscal Year ending December 2018
(Unit: billions of yen, Percentage to net sales is stated in parentheses)

FY ended December
2017
Full-year results
Net sales

Gross profit

Operatingresults

Operating income
Ordinary income

First half of FY Changes yearon-year
forecast172.092.3(100.0%)(100.0%)29.8

15.7(17.3%)(17.1%)

6.3

3.1(3.7%)(3.4%)

5.9

3.1(3.4%)(3.4%)

+6.6%
+7.1%
-2.8%
+2.2%

Full-year
forecast

184.8(100.0%)31.9(17.3%)

6.7(3.7%)

6.6(3.6%)

+7.4%
+7.1%
+7.1%
+12.9%

3.0

2.1(2.4%)

Percentage of North
America (Net sales)

58.9%

--

57.3%

-1.6 pt

Percentage of North
America (Operatingincome)

78.6%

--

77.3%

-1.4 pt

ROWC *1

20.3%

--

21.8%

+1.5 pt

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

112.19 yen

110.00 yen-2.37yen

110.00 yen-2.19 yen

Net income per share *2

236.37 yen

151.93 yen+31.0%

324.98 yen+37.5%

GroupKPI+50.5%

4.6

Changes yearon-year(1.8%)Net income attributable toowners of parent

(*1)
(*2)

FY ending December 2018

(2.5%)+52.1%

Operating income for FY 2017 / ([Working capital at the end of FY 2016 + Working capital at the end of FY 2017] / 2)
The Company conducted a five-for-one common stock split on June 1, 2017. Net income per share was calculated on the assumption that the stock
split has been conducted at the beginning of FY 2016.

2018 Nishimoto Wismettac Group All rights reserved.

6

Operating Income for the Fiscal Year ending December 2018
(Compared to the Previous Period)[Exchange rate (US$)]North
America

Other thanNorth
America+0.23+0.40

Agricultural &Seafood
ProductsTrading
Business+0.34(billions of yen)

FY ended December 2017: 112.19 yen
FY ended December 2018: 110.00 yen

Other+0.02

Political
expenses-0.30

Adjustment forconsolidation-0.15

FX (NorthAmerica)

-0.09

6.32

6.77

FY ended December2017 results

FY ended December
2018 forecast

2018 Nishimoto Wismettac Group All rights reserved.

7

Forecast of Operating Results by Segment for the Fiscal Year ending December
2018

Sales to external customers(billions of yen)

FY ended
December 2017
Full-year results

FY ending December 2018
First half of FY
forecast

Changes year-onyear

Full-year forecast

Changes year-onyear

Asia Food Global Business

118.4

61.0

+5.3%

125.4+5.9%

Agricultural & Seafood
Products Trading Business

49.6

29.1+8.1%

54.8+10.5%

Other business3.9

2.0+25.1%

4.5+13.6%

172.092.3

+6.6%

184.8

+7.4%

Total

Operating income(billions of yen)

FY endedDecember 2017

FY ending December 2018

Full-year results

First half of FYforecast

Asia Food Global Business

5.6

Agricultural & Seafood
Products Trading BusinessChanges year-onyear

Full-year forecast

Changes year-onyear

2.8-8.6%

6.2

+9.6%

0.4

0.4

+205.0%0.7+79.0%

Other business

0.1

0.0-

0.1

+12.3%

Adjustment(including political expenses)

0.0-0.2--0.4-Total

6.3

3.1

-2.8%

6.7+7.1%

2018 Nishimoto Wismettac Group All rights reserved.

8

Changes in operating results of the Asian Food Global BusinessNorth American region

Other regions

130.0
All segments
12% increaseyear-on-year

Net Sales (billions of yen)

120.0

17.0

110.0

(33% increaseyear-on-year)

100.0

All segments
6% increase
Year-on-year

19.4(14% increaseyear-on-year)

12.7

90.0
80.0

101.4
70.0

93.3

(9% increase
Year-on-year)

105.9(4% increaseyear-on-year)

60.0
50.0
FY ended December 2016
results2018 Nishimoto Wismettac Group All rights reserved.

FY ended December 2017
results

FY ending December 2018
forecast

9Making people’s lives around the world richer through foodNishimoto Co., Ltd.

2018 Nishimoto Wismettac Group All rights reserved.

Disclaimer
These materials are intended to provide financial information, management information, etc. of NishimotoCo., Ltd. and its affiliated companies (hereinafter collectively referred to as “the Company”), but theCompany 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 theCompany, and include risks and uncertain elements in relation to economic trends, competition in theindustry, market demand, foreign exchange rates, taxation system, various systems, etc. Therefore, actual
operating results that 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 is under 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.
Management Planning Department
TEL：03-6870-20152018 Nishimoto Wismettac Group All rights reserved.