Supplementary Material to Financial Results
Fiscal Year Ended December 2020

Nishimoto Co., Ltd.
February 12, 2021

Table of Contents• Summary of Financial Results for theFiscal Year Ended December 2020

P. 2

• Forecasts of Financial Results for theFiscal Year Ending December 2021

P. 6

• Policy of Returning Profits toShareholders

P. 11• Corporate ProfileP. 13

2021 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results
for the Fiscal Year Ended December 2020

Summary of Financial Results for the Fiscal Year Ended December 2020
Although sales to the restaurant industry decreased significantly due to the spread of the novel
coronavirus, the good performance of sales to retailers and expense reduction efforts resulted in anoperating income of 1,900 million yen and a net income of 1,000 million yen.
 Net sales declined 7.8% year-on-year on a cumulative basis despite a steady recovery in and after the third quarter owing
to the reopening of the restaurant industry after the easing of regulations in countries around the world and a shift to theformats of take-out and food delivery as well as the continued good performance of sales to retailers.
 Profit remained steady in and after the third quarter as net sales were recovering, and operating income reached 1,900
million yen on a cumulative basis.
• The additional provision of allowance for doubtful accounts and valuation loss of inventories, recorded in the firsthalf as measures against the novel coronavirus pandemic (an approximate total of 1,700 million yen), werepartially reversed. The amount of the reversal was 1,200 million yen in total.
FY ended December 2019

Operating results

Full-year results(Units: billions of yen)

FY ended December 2020

Full-year results

Changes year-on-year

Net sales

182.6

168.4

-14.1

Gross profit

32.1

29.4

-2.6

Operating income(Excluding policy expenses)

5.1

4.1-1.0

Operating income or loss

4.3

1.9-2.3

Ordinary income or loss

4.5

1.7-2.8

Net income or loss attributable toowners of parent

2.4

1.0

-1.4

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

109.05 yen

106.82 yen-2.23 yen

Net income or loss per share

173.71 yen

70.80 yen-102.91 yen

2021 Nishimoto Wismettac Group All rights reserved.Operating Results by Segment for the Fiscal Year Ended December 2020
In the Asian Food Global Business, profit decreased year-on-year due to the decrease in sales to the restaurant industry
caused mainly by the tightening of operating regulations in the second and the fourth quarters. The Agricultural & Seafood
Products Trading Business secured about the same level of sales and profit as the previous term due to strong sales in China.
Asian Food Global Business (hereinafter called “GAF”)
 Sales to the restaurant industry recovered moderately due to the gradual easing of regulations and a change of business formats, mainly to take-out and fooddelivery. Sales to retailers maintained steady growth after the lifting of lockdowns. Although net sales declined on a cumulative basis, they showed a strong
recovery in the second half of the year particularly in Hong Kong, Singapore, Australia, and Netherlands.
•In the North American region, sales decreased 17.3% year-on-year.

•In regions outside of North America, sales increased +36.4% year-on-year (a negative 1.3% excluding four companies in total in the SSP and C3C Groups
that were not subject to consolidation in the previous term).

 As for profit, the segment posted an operating income of 1,800 million yen, including a partial reversal of the provision of allowance for doubtful accounts andvaluation loss of inventories recorded in the first half.
•In the North American region, the operating income was 1,730 million yen (an operating income of 3,600 million yen in the same period of the previousyear).

•In regions outside of North America, the operating income was 70 million yen (an operating income of 500 million yen in the same period of the previousyear).

Agricultural & Seafood Products Trading Business Net sales declined 3.8% year-on-year due to a delay in the recovery of demand in the restaurant industry although sales of fruits and vegetables to retailers
performed well from the third quarter onward. Profit decreased 10.7% year-on-year (a decrease of 80 million yen) due to the decrease in net sales and an increase
in selling, general and administrative expenses.

(Units: billions of yen)

FY ended December 2019

GAF
Agricultural & SeafoodProducts Trading

OtherAdjustmentTotalNet sales
Operating income or loss
Net sales
Operating income or loss
Net sales
Operating income or loss
Net sales
Operating income or loss
Net sales
Operating income or loss

2021 Nishimoto Wismettac Group All rights reserved.

FY ended December 2020

Full-year results

Full-year results

Changes year-on-year

128.8
4.1
49.8
0.7
3.9
0.1

116.8
1.8
47.9
0.6
3.6
0.1

-0.7
182.6
4.3

-0.6
168.4
1.9

-11.9
-2.3
-1.8
-0.0
-0.3
-0.0
0.0
-14.1
-2.3

--

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

FY ended
December 2019
Current assets

87.9

98.1

8.6

15.4

96.5

113.6

Non-current
assetsTotal assets

FY ended
December 2020

Amount/rate ofincrease (decrease)+10.1

Main reasonsfor changes
Cash and deposits +13.5, Accounts
receivable-trade -0.8, Inventories -1.4
* Including the SSP and C3C Groups’
accounts receivable-trade andinventories of 4.7 in total+4.1, Customer+6.8 Goodwill
related assets +3.5

+17.0
Accounts payable-trade +0.8, Shortterm loans payable +0.6
* Including the SSP and C3C Groups’
accounts payable-trade of 1.2

Current liabilities

19.0

21.4

+2.4

Non-current
liabilities

25.1

41.2

+16.0 Long-term loans payable +14.0

Total liabilities

44.2

62.7

+18.5
Foreign currency translation-1.4 adjustment -2.0, Non-controllinginterests +0.3

Total net assets

52.3

50.8

Total liabilities andnet assets

96.5

113.6

+17.0

Shareholders’equity ratio

54.2%

44.4%

-9.8ptCurrent ratio

461.5%

456.5%-5.0pt2021 Nishimoto Wismettac Group All rights reserved.

Forecasts of Financial Results
for the Fiscal Year Ending December 2021

Approaches of new business concepts
Nishimoto Wismettac aims to become a specialized global solutions company
in the five fields shown below, which consist of the food field and other newfields intersecting with the food field.
<Focus>Ecosystem

1. Food supply chain solution

3

2. Solution in the intersection
between food andhealthcare

1

Food

2

Healthcare

2021 Nishimoto Wismettac Group All rights reserved.

4. Solution in the intersection
between food and new lifestyle
5. Migration Service Business

4NewLifestyle

3. Solution in the intersection
between food andecosystem

5MigrationBusinessManagement policy for the fiscal year ending December 2021
The existing businesses will focus on the reconstruction of their business models andproductivity improvements to strengthen earning capacity. New businesses will aim tostart to make a profit from businesses derived from existing businesses, while creatingnext-generation businesses in new fields.
Assumptions about the external
Direction of the Companyenvironment
 The spread of novel coronavirus will
1. Create next-generation businesses
subside in the second half of 2021, andin new fields
the economy will recover gradually.
GAF
Agricultural& SeafoodProducts Domestic

Although the recovery of the restaurant
industry will be slow, sales to retailers(including mass, grocery, and onlineretailers) will be strong.
Container freight rates will rise and theyen will continue to be strong.
Focus will be on data-based sales andpurchases.
As in foreign countries, the recovery of therestaurant industry in Japan will be slow.
Sales to retailers will continue to be strong.
The moderate tightening trend of the
supply-demand balance in the agriculturaland seafood product markets will subside
for the time being and market prices willfall.
In-person and event sales in a three-C
situation will continue to be difficult.
The shift to online shopping will bepromoted.

2021 Nishimoto Wismettac Group All rights reserved.



Develop businesses in the intersection
between the fields of food, healthcare,and ecosystem
Put in place a mechanism to create new
businesses at overseas business sites inJapan, Europe, the U.S., China, and other
Asian countries.

2. Boost the earnings capacity ofexisting businesses
Reconstruct business models to suit thecurrent market conditions
Improve productivity by introducing ITsystems

3. Expand new businesses derived
from existing businesses

Develop sales channels to sell products
to overseas mainstream customers
Create a new mechanism for exporting
agricultural and seafood productsBreakdown of strategic investment
A strategic investment of about 3.9 billion yen will be made to boost theearning capacity of existing businesses and to create new businesses.
Measures

Aims

Amount (including expenses, billions of yen)2020

2021 Changes

1 Creation of new businesses in
the intersection of the fields
of food, healthcare,ecosystem, and new lifestyle Diversification of businessportfolio

0.30.80.52

 Enhancement of theproduct development
division Further expansion of the private
brand product lineup Development of health-oriented
products

0.10.20.1

 SCM and IT infrastructure
investments

 Reduction of SG&A expenses andlogistics expenses leveraging DX
and robotics

0.00.50.5

 Organizational
Revitalization

 Stronger organizational power Establishment of KPIs linked toindividual rewards
 Stronger teamwork capability throughthe introduction of internal
communication/coordination tools

0.50.50.0

 Development of mainstream
sales channels

1.0

1.60.6

 Tapping growth markets
overseas0.1

0.10.0 Restaurant operation format
suitable to New Normal

0.2

0.2

0.02.2

3.9

1.7

Expandbusiness fields

Boost theearnings
capacity ofexisting
businesses

3
Expand newbusinesses
derived fromexisting
businesses

 Developing sales channels
and strengthening
management capability inlocal markets overseas
 Creation of a mechanism toexport domestic agriculturalproducts Development of new services
to the restaurant industry(New Normal eating habits)

2021 Nishimoto Wismettac Group All rights reserved.

Total

Earnings forecast for the fiscal year ending December 2021
Despite the existence of headwinds such as the lingering effect of the novel coronavirus pandemic that
did not exist when the previous medium-term business plan was developed, we will realize a steadyrecovery of existing businesses and the acceleration of new businesses.
Planning assumption

Unit: billions of yen

Entirecompany

Existing

GAF

Agricultural& Seafood
Products

Domestic
BtoC

NewThe recovery from the effect of the novel coronavirus pandemic is expected in the second half of FY
2021 (first half in the previous medium-term business plan). The yen/dollar exchange rate isassumed to be 100 yen (108 yen in the previous medium-term business plan).
(Units: billions of yen)
ResultResultPrevious plan Current plan
Comment
FY 2021
FY 2019
FY 2020
FY 2021

Sales

182.6

168.4

193.2

187.0

Profit

4.3

1.9

2.5

2.0

Sales

180.5

165.7

184.8

180.5

Profit

5.4

3.9

4.8

4.7(5.2)

Sales

128.8

116.3

131.8

128.0

Profit

4.5

3.0

4.0

4.0(4.5)

Sales

47.7

45.8

49.1

50.4

Profit

0.8

0.8

0.6

0.7

Sales

3.9

3.6

3.93.8

Profit

0.1

0.1

0.2

0.0

Sales

2.1

2.7

8.4

6.5

Profit

▲1.1

▲2.0

▲2.2

▲2.7

2021 Nishimoto Wismettac Group All rights reserved.

Investments to strengthen IT
infrastructure and promote DX
and investments in new
businesses will be accelerated.
Operating income of existing
businesses will recover to about
the same levels as in the previous
medium-term business plan.

The effect of the acquisition ofC3C will realize and the earning
capacity will steadily recover allover the world.

Earning capacity will besteadily enhanced by thestrengthening of domesticand international businesses.
Operating results are expected to beabout the same as this year, but
operating income will decrease due
to changes in allocation basis forinternal expenses.

New businesses willfurther accelerate.

Figures in ( ) represent operating income excluding the effect of strategic investments to strengthen IT
infrastructure and promote DX and are calculated for management purposes.

Policy of Returning Profits to Shareholders

Policy of Returning Profits to Shareholders[Policy] The Company’s basic policy for returning profits to shareholders is to continue providing stabledividends while striving to maintain retained earnings to develop its businesses in the future and toimprove its financial strength.
 The Company considers the dividend payout ratio as an important indicator of how appropriate a
dividend payment is, and targets a dividend payout ratio on a consolidated basis of approximately 30%
for each fiscal year. The Company’s forecast of net income for the fiscal year ending December 2021 is
0.3 billion yen for the first half of the year and 1.0 billion yen for the full-year.
 As it is extremely difficult to predict when the novel coronavirus pandemic will subside, the amount ofinterim dividend has not been determined at this point.
 Our dividend forecast for the fiscal year ending December 2021 is 20.00 yen per share in total of bothinterim and year-end dividends.

Dividend per share(yen)

20 yen20 yenYear-end
dividend

Year-end
dividend

Interimdividend
Not paidInterimdividend
TBD

20

100
FY ended December 2020

FY ended December 2021(Results)(Forecast)

2021 Nishimoto Wismettac Group All rights reserved.

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

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

Head office

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

EstablishedMay 1912

Representative directors

Yoshiro Susaki, Chairman & President CEO

Number of employees

1,768(including 1,455 in the Asian Food Global Business) [As of December 31, 2020]
 Development and sales of Asian food worldwide

Business

 Imports and sales of fruit, vegetables and related processed products, and supply of foodingredients to food manufacturers and the restaurant sectorSubsidiaries and affiliates

Business sites

15 subsidiaries, 1 affiliate
47 worldwide (including 24 in North America)
Locations in Japan, the U.S., Canada, Singapore, Australia, Netherlands, U.K., Germany,France, China, Hong Kong, Thailand, Vietnam and South Korea

Consolidated net sales

168.4 billion yen (FY ended December 2020)

Consolidated ordinary
income1.7 billion yen (FY ended December 2020)

Shareholders’ equity ratio
2021 Nishimoto Wismettac Group All rights reserved.

44.4% (FY ended December 2020)* Overseas sales ratio 67.8%

Nishimoto Wismettac: Domestic and Overseas Business Sites
Developing businesses in all continents with 47 global locations in North America, Europe, Australia
and Asia, among which North America (U.S. and Canada) has 24 locations accounting for the majorityof sales
13 • COMPTOIRS DES 3 CAPS
| • COMPTOIRS OCEANIQUES
16 • TROPIC FISH
12 SSP Konsumgüter TRADE & CONSULT GmbH

Calgary Office

10 Wismettac Harro Foods Limited

Denver Office
Wismettac Asian

1 Nishimoto Co., Ltd.
WF Seoul Representative Office

4 Foods, Inc. (Canada)
Las Vegas Office

2 Wismettac Foods, Inc.

Seattle Office

7 NTC Wismettac Europe B.V.

Sacramento Office

Wismettac Foods
8 Shanghai Co., Ltd.
9 Shanghai IPM Co., Ltd.

San Francisco Office
Wismettac Asian

3 Foods, Inc.

11 Nippon Foods Co., Ltd.
16 SIM BA TRADING JTC
WF Ho Chi Minh Representative Office
WF Bangkok Representative Office

5 NTC Wismettac Singapore Pte.Ltd.

Hawaii Office
WF Kobe Office
WF Kobe Branch

San Diego Office

WF Naha Representative Office

Arizona Office
Houston Office
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”

2021 Nishimoto Wismettac Group All rights reserved.

Chicago Office
Toronto OfficeMontreal Office
Boston Office
New York Office
Washington, DC Office
Ohio OfficeMiami OfficeOrlando OfficeAtlanta Office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 theCompany, 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
results that will be published in the future may differ due to these elements, and the Company does notassume any liability for any damage arising from the use of information in these materials. Furthermore, theCompany 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.
Corporate Planning Dept.
TEL: 03-6870-2015

2021 Nishimoto Wismettac Group All rights