Supplementary Material to Financial Results
First Quarter of the Fiscal Year Ending December 2020

Nishimoto Co., Ltd.
May 14, 2020
2020 Nishimoto Wismettac Group All rights reserved.

Contents• Summary of Financial Results
for the First Quarter of the Fiscal Year EndingDecember 2020

P. 2

• Impact of the Coronavirus Pandemic on theCompany’s Business Results

P. 6• Corporate Profile

P. 102020 Nishimoto Wismettac Group All rights reserved.

1

Summary of Financial Results for the First Quarter of theFiscal Year Ending December 2020

2020 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the First Quarter of the Fiscal Year Ending
December 2020
Sales decreased year-on-year due to the novel coronavirus pandemic from March and yen appreciation. Profits
decreased year-on-year due to the provision of an allowance for doubtful accounts, an increase in policy expenses andso on.
 Despite year-on-year growth in January and February, net sales slightly declined 1.6% from the same period of the previous year to 43 billion yen
because the yen appreciation decreased the value denominated in yen and the novel coronavirus pandemic from Mid-March caused a significant
decrease in sales to restaurant chains.
 Operating income decreased 99.6% year-on-year due to the impact of the novel coronavirus pandemic (i.e. provision of allowance for doubtful
accounts receivable and income decrease) and an increase in SG&A including up-front expenditures for future growth (hereinafter called “policyexpenses” *1).

 The impact of foreign currency rates in converting to the yen for consolidated financial statements (the yen appreciated 1.28 yen year-on-year
against the U.S. dollar) caused net sales to decrease by 500 million yen from the previous year with almost no impact on operating income.
(Unit: billions of yen, Percentage to net sales is stated in parentheses)

FY ended December 2019
First quarter results*Net sales
Gross profit
Operating income
Operating (Excluding policy expenses)
results
Operating income
Ordinary income
Net income attributable to ownersof parent
Yen/Dollar exchange rate
(Average rate during the period)
Quarterly net income per share

FY ending December 2020
First quarter results

43.7(100.0%)

43.0

-1.6%

(100.0%)7.9

Changes year-on-year(18.1%)(18.4%)

7.9

+0.0%

1.5

0.4-70.3%

0.0-99.6%-0.2-118.6%(3.5%)(1.1%)

1.4(3.3%)(0.0%)

1.4(3.3%)(-0.6%)(2.3%)

1.0(0.3%)

0.1-88.8%

110.20 yen

108.92 yen-1.28 yen

70.90 yen

7.92 yen-88.8%

1* Operating expenses, labor costs and so on to bolster overseas management and create new businesses
2020 Nishimoto Wismettac Group All rights reserved.

3

Operating Results by Segment for the First Quarter of the Fiscal Year Ending
December 2020
Profits from the Asian Food Global Business decreased year-on-year due to the provision of an allowance for doubtful
accounts in North America. Profits from the Agricultural & Seafood Products Trading Business decreased year-on-year
due to sluggish demand for eating-out due to novel coronavirus pandemic in addition to warm winter.
Asian Food Global Business (hereinafter called “GAF”)
 We planned the net sales increase through acquisition of SSP as a consolidated subsidiary, but kept the almost same level as in the previous year
marking +0.2％ because the sales in Europe and U.S. steeply decreased from restaurants being ordered to close and restrictions on going out
from Mid-March and the yen appreciation decreased the value denominated in yen.
• In North American regions, it decreased 2.4% (or 1.3% in a local-currency basis)• In regions outside of North America, it increased 15.6% (or 18.9% in a local-currency basis) and decreased 0.5% (or increased 2.8% in alocal-currency basis) excluding SSP.
 Operating income decreased 94.5% year-on-year due to the provision of allowance for doubtful accounts receivable mainly from restaurants inNorth America.
• In North America, it decreased 78.0% year-on-year due to the provision of 800 million yen for an allowance for doubtful accounts
receivable from restaurants.
• In regions outside of North America, operating income decreased 217.6% due to an increase in policy expenses mainly for bolstering
management and an income decrease by restrictions on restaurant business and going out.

Agricultural & Seafood Products Trading Business Net sales fell 6.6% year-on-year because the warm winter slowed cargo movement of citrus and vegetables and the novel coronavirus pandemic
decreased the sales to restaurants. Operating income decreased 81.0% year-on-year due to the impact of lower net sales.

(Unit: billions of yen)First Quarter of FY
ended December 2019
results

Business segments

GAF
Agricultural & Seafood
Products Trading Business
OtherTotal

Net sales
Operating income
Net sales
Operating income
Net sales
Operating income
Net sales
Operating income

2020 Nishimoto Wismettac Group All rights reserved.

31.0
1.2
11.4
0.1
1.1
0.1
43.7
1.4

FY ending December 2020
First Quarter results

Changes year-on-year

31.1
0.0
10.7
0.0
1.2
0.1
43.0
0.0

+0.2%
-94.5%-6.6%-81.0%+2.2%-10.0%-1.6%-99.6%
4

Operating Income for the First Quarter of Fiscal Year Ending December 2020 (Compared to the same
period in the previous year)
Profit decrease is mainly due to the provision of an allowance for doubtful accounts in the North America, excluding
policy expenses. Impact of novel coronavirus pandemic is limited in the first quarter because restrictions on going out
and businesses started in Mid-March in Europe, U.S. and Japan.
Variation analysis of operating
income(Compared to same period in previous year)(Unit: billions of yen)

Increase/decrease of operating
income excluding policy expenses

-0.8

1.4

-0.1
-0.1
-0.1

-0.0

-0.0

-0.0
-0.4

0.0
Year-onyear results

GAF(NorthAmerica)

GAF(Europe)2020 Nishimoto Wismettac Group All rights reserved.

GAF
Agricultural &(Asia and Seafood Products
Oceania) Trading Business(Japan and China)

Other

Adjustment

Foreignexchange
fluctuation

Strategicexpenses

This quarter
results5

Impact of the Coronavirus Pandemic on the Company’s
Business Results

2020 Nishimoto Wismettac Group All rights reserved.

Impact of Novel Coronavirus Pandemic on Business Results
Many of our main client restaurant chains are refraining from or are prohibited from doing business, which affects
sales. Consolidated financial results forecast and dividends in this period cannot be calculated properly andreasonably and have been temporarily changed to “TBD.”

Impact on sales (Mid-March to April)GAF

 GAF rapidly fell into a tough situation throughApril in our main markets of Europe and U.S.
• Sales to restaurants temporarily fell to about
30% but gradually recovered due to anincrease in take-out and delivery systems.
• Sales to retailers remained robust at a level
higher than in the previous year due to anincrease in eating at home.
• As a whole, it remained about 60% year-onyear.
 The number of clients requesting an extension of
the due date of accounts payable increases.

Future outlook
Currently, the future prospect is uncertain though a sign ofrecovery is being shown by easing restriction on business andoutgoing.
<Factors to push up recovery> More entry of restaurants in take-out and delivery markets
 Financial support of the government to corporations andindividuals
 Worldwide easing and lifting of restrictions on going outand business• China• Europe (Germany, France, Netherlands, etc.)• Australia<Factors to push down recovery>

Domesticmarket(Otherthan GAF)

 Sales of fresh and frozen fruits and vegetables fell
to about 85% year-on-year due to a decrease insales to restaurants.
 Sales of event and project goods are sluggish due
to self-restraint of retailers, but sales of healthfoods are good.

 Return to enhanced restriction on business and going out
due to a second pandemic
 Avoidance of eating out due to anxiety of getting infectedor a decrease in income Fiercer price competition to sell excess inventory
 Shortage of materials and personnel for take-out anddelivery

Forecast of financial results and dividends will be announced after looking at the lifting of restrictions on going outand business and recovery of the restaurant business in respective countries.
2020 Nishimoto Wismettac Group All rights reserved.

7

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 name2020 Nishimoto Wismettac Group All rights reserved.

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

Mission”A solution company resolving food and healthrelated issues and creating and providing newvalue”
Until now

What we want to be Food trade and logistics company

 A company providing solutions for consumer needs• Provide a platform to spread
Asian food globally(development, procurementand delivery)• Worldwide import and sale ofand challenges on “food and health” in the entire
supply chain including business partners as well as
ourselves• Evolving into a business entity having
functions of growing fruits and vegetables andengaging in the planning, development,

food products, mainly fruits

logistics, sales, risk management, etc. of foodand vegetables

products• Flexibly leveraging external solutions, such as
the latest technologies in various fields

2020 Nishimoto Wismettac Group All rights reserved.

9Nishimoto Wismettac: Corporate Profile
Founded in 1912, Nishimoto Wismettac has grown into a global company supplying food ingredientsand 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

1,671(including 1,374 in the Asian Food Global Business) [As of December 31, 2019]
 Development and sales of Asian food worldwideBusiness Imports and sales of fruit, vegetables and related processed products, and supply offood ingredients to food manufacturers and the restaurant sector

Subsidiaries andaffiliates

11 subsidiaries, 5 affiliates

Business sites

49 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
Consolidated ordinary
incomeShareholders’ equity
ratio

182.6 billion yen (FY ended December 2019)* Overseas sales ratio 67.7%

4.5 billion yen (FY ended December 2019)2020 Nishimoto Wismettac Group All rights reserved.

54.2% (FY ended December 2019)10Nishimoto Wismettac: Domestic and Overseas Business Sites
Developing businesses in all continents with 49 global locations in North America, Europe, Australia andAsia, among which North America (U.S. and Canada) has 24 locations accounting for the majority of sales

・COMPTOIRS DES 3 CAPS SARL
13・COMPTOIRS OCEANIQUES|・CAP CAVALLY
16
・TROPIC FISH
12 SSP Konsumgüter TRADE & CONSULT GmbHCalgary Office

10 Harro Foods LimitedDenver Office
Wismettac Asian Foods,4 Inc. (Canada)

1 Nishimoto Co., Ltd.
WF Seoul Representative Office

2 Wismettac Foods, Inc.

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

8San Francisco Office

9 Shanghai IPM Co., Ltd.

Wismettac Asian Foods,

3 Inc.

11 Nippon Foods Co., Ltd.

WF Ho Chi Minh Representative Office

WF Bangkok Representative Office

Seattle Office
Sacramento Office

Wismettac Foods
Shanghai Co., Ltd.

17 Sim Ba Trading Co., LTD

Las Vegas OfficeMontreal Office
Boston Office
New York Office
Washington, DC OfficeMiami Office

WF Kobe Office
San Diego Office

WF Naha Representative Office

Toronto OfficeOhio Office

Hawaii Office
WF Kobe Branch

Chicago 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”

2020 Nishimoto Wismettac Group All rights reserved.

11

Major Business Segment: Asian Food Global BusinessDistribution of Asian food ingredients and food products with a focus on Japanese food around the world centeringon North America. Achievement of in-house streamlined commerce and logistics from product development andplanning to sales and delivery.

Streamlined supply chain management
Product development
and planning

Purchasing andprocurement

Customs
clearance

Developing new private brand products

Storage

Sales

Sortingand delivery

Logistics capabilities (trucks and warehouses)“Shirakiku” brand accounts for about 40% of sales.
(North American business performance, 2019)

Wide product range and diversified suppliers(about 7,900 items)

Sales structure and global network(24 locations in North America, 49 locations globally) The most suitable production region can be chosenglobally.
 Working with producers to develop products tailored tocustomer needs
 Implementing production and quality control systems
that comply with local regulations
・Network with global Asian foods sales channel and know-how of relevant laws and regulations in various
countries
2020 Nishimoto Wismettac Group All rights reserved.

12

Product Portfolio of the Asian Food Global Business
We import and procure Asian food products and ingredients, with a focus on Japanese food, including from the U.S.,
Japan, China and South East Asia, and distribute approximately 7,900 items on a global basis, principally in NorthAmerica.

Main Products
Chopsticks,containers, etc.

Alcohol

Rice

Confectionery
Agriculturalproducts
Seafoodproducts

Sauces andseasoning
Processedfoodproducts

2020 Nishimoto Wismettac Group All rights reserved.

13

Major business segment: Agricultural & Seafood Products Trading Business
We import and sell mainly fresh and frozen fruits and vegetables to a wide range of customers, including fruit andvegetable markets, retail shops and restaurants in Japan. As the sole import agent in Japan of Sunkist Growers, Inc.,
we have a large share of the imported citrus fruit market.

Main Products
Seafood
Domestic
Domestic
marketmarket share:share:
roughly 50%
50%
roughly

Seafood

Frozen fruit andvegetables, canned
goods etc.

Frozenstrawberries

Other

Citrus fruit

Other
Other

LemonsPineapples

BananasOranges
Other

BananasDomestic
market share:roughly 30%

Grapefruit

Asparagus
Peppers

Vegetables

Other

Other
Avocados

GrapesCherries

Tropical fruit

Kiwifruit* In-house company calculation based on Ministry of Finance trade statistics
2020 Nishimoto Wismettac Group All rights reserved.

14

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 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 theCompany does not assume any liability for any damage arising from the use of information in thesematerials. Furthermore, the Company is under no obligation to revise and publish future forecasts inthese materials based on new information or future events.
The Company pays close attention when preparing these materials; however, if there are any errors in
the information presented, falsification of data by a third party, or any failure arising from download ofdata, 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
actually made, 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

2020 Nishimoto Wismettac Group All rights reserved.