Supplementary Material to Financial Results
First Quarter of the Fiscal Year Ending December 2022

Nishimoto Co., Ltd.
May 13, 2022
2022 Nishimoto Wismettac Group All rights reserved.

Contents•

Summary•

Summary of Financial Results for the First Quarter of

the Fiscal Year Ending December 2022
•

P. 2

P. 3

Revision of Interim and Full-Year Earnings Forecasts
for the Fiscal Year Ending December 2022

P. 8

•

Policy of Returning Profits to Shareholders

P.12

•

Medium-Term Business Plan

P.14

•

Corporate Profile

P.26

2022 Nishimoto Wismettac Group All rights reserved.

1

Summary
Q1 2022 Financial Results

p. 3With the relaxation of regulations related to COVID-19, consumer demand recovered as economic activities were stimulated mainly
in North America and Europe. The Company saw significant increases in sales and profits year-on-year chiefly in the Asian Food
Global Business.

◆

Same period last year Net sales:

44.6 billion yen

Operating income:1.1 billion yen

Ordinary income:1.1 billion yen Net profit:

0.9 billion yen*

Net sales: 59.0 billion yen Operating income: 2.9 billion yen Ordinary income: 3.1 billion yen Net profit: 2.1 billion yen*

Current period(*) Net income attributable to owners of parent

Revision of Interim and Full-Year Earnings Forecasts and Dividend Forecasts◆

p. 8

Earnings forecasts and dividend forecasts have been revised based on the first-quarter financial results and the current
business environment as follows:

Earnings Forecast for the Fiscal Year Ending December 2022
Interim

Net sales: 130.0 billion yen

Operating income: 5.0 billion yen

Ordinary income: 5.0 billion yen

Net profit: 3.5 billion yen*

Full YearNet sales: 254.0 billion yen

Operating income: 9.0 billion yen

Ordinary income: 9.0 billion yen

Net profit: 6.0 billion yen*

Dividends Forecast for the Fiscal Year Ending December 2022
FYE 12/2021
Interim dividend: 35 yen
Year-end dividend:
FYE 12/2022

Interim dividend: 65 yen (forecast)(*) Net income attributable to owners of parent

70 yenYear-end dividend: 60 yen (forecast)

Total:

105 yenTotal:

125 yen (forecast)Medium-Term Business Plan: Become a bridge across the regions, linking unsatisfied needs ofthe food industry and consumers with creative solutions

p. 14

◆

Evolving from the cross-border food supply chains to the “Silk Road in Food Industry”➢
Providing Japanese food, fresh vegetables and fruits, and imported processed food → Offering solutions (food, technology,
and service)➢
From Japan to the world, from the world to Japan → From the world to the world: developing interactive business in five
regions of the world◆

Aiming at over 300 billion yen in net sales and 10 billion yen in operating income on a company-wide basis in 2024 while increasing
sales primarily in the Asian Food Global Business[2022]Net sales: 254.0 billion yen[2023]
Operating income: 9.0 billion yen

2022 Nishimoto Wismettac Group All rights reserved.

Net sales: 279.2 billion yen[2024]
Operating income: 9.5 billion yen

Net sales: 304.5 billion yen
Operating income: 10.0 billion yen

2Summary of Financial Results for the First Quarter of
the Fiscal Year Ending December 2022

2022 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the First Quarter of the Fiscal Year Ending
December 2022
As COVID-19 regulations were increasingly relaxed, economic activities were stimulated, boosting sales forrestaurants. Sales for groceries also continued to be strong. Through group-wide proper inventory control andpersonnel measures, the Company maintained steady profitability by striving to keep its supply system stable andobtain profit-making opportunities.
◆ The progress in the relaxation of regulations stimulated economic activities, and as a result, sales for restaurants grew mainly inEurope and the U.S. Sales for groceries, which underpinned the overall sales under COVID-19 conditions, also continued to bestrong, and as a result, the Company achieved significant increases in sales, at 32.3% year-on-year.
◆ Amidst the delay in logistic operations as well as in the manufacturing process at product suppliers due to the deterioration of
shipment by container vessels, which were forced to wait at sea, and general personnel shortages, the Company ensured proper
inventory control and took personnel measures on a group-wide basis to maintain stable product supply and service levels, thus
securing profitability.
◆ During the current term, the direct effects of the situation in Ukraine were minor.
FY ended December 2021

(Unit: billions of yen)
FY ending December 2022

First quarter results

First quarter results

Net sales

44.6

59.0

+14.3

+32.3%

Gross profit

8.5

12.5

+3.9

+46.8%

Operating income(Excluding strategic expenses)

1.8

3.5

+1.7

+95.8%

Operating income or loss(△)

1.1

2.9

+1.7

+158.6%

Ordinary income or loss(△)

1.1

3.1

+2.0

+173.9%Net income or loss(△) attributableto owners of parent

0.9

2.1

+1.2

+139.2%

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

105.90 yen

116.20 yen+10.30 yen

Quarterly net income or loss(△) per share

63.03 yen150.77 yen+139.2%

Operatingresults2022 Nishimoto Wismettac Group All rights reserved.

Year-on-year4Operating Results by Segment for the First Quarter of the Fiscal Year Ending
December 2022◆◆

Despite the delay in logistics and other operations, the Asian Food Global Business saw both sales and profits continue to bestrong as it concentrated on stable product supply.
The Agriculture & Seafood Products Trading Business struggled to gain sales due to continued regulations in major cities inJapan but achieved increased sales and profits year-on-year thanks to the contributions made by Ban Choon Marketing Pte.
Ltd., which had become a consolidated subsidiary of the Company.

Asian Food Global Business (hereinafter called “AFB”)◆ The relaxation of regulations in various countries stimulated economic activities, and as a result, sales for restaurants in particular increased
significantly. Amidst the delay in logistic operations as well as in the manufacturing process at product suppliers due to the deterioration of
shipment by containers, which were forced to wait at sea, and general personnel shortages, the Company ensured proper inventory control andtook personnel measures on a group-wide basis to maintain stable product supply and service levels, thus securing profitability.
• North America region: +36.4% YoY, +25.4% YoY vs. FY 2019 (before the COVID-19 pandemic)• Regions other than North America: +46.4% YoY

Agricultural & Seafood Products Trading Business◆ In the domestic market, the Company struggled to gain sales due to the continuation of the Act on Priority Measures Such as Prevention of
Spread in major urban areas, but thanks to the contributions made by Ban Choon Marketing Pte. Ltd., a major wholesaler of fresh vegetables andfruits in Singapore, which had become a consolidated subsidiary of the Company, sales grew by 11.8% year-on-year.
◆ In an environment in which unstable shipping schedules made inventory control difficult, the Company’s efforts to maintain comparatively
favorable market prices took effect.
(Unit: billions of yen)

FY ended December 2021

Business segments

AFB
Agricultural & Seafood
Products Trading
Business

Other
Adjustment
Total

First quarter results

FY ending December 2022
First quarter results

33.3
1.2
10.2
▲ 0.0
0.9
0.0
▲ 0.1

46.3
2.9
11.4
0.0
1.1
0.0
▲ 0.1

Net sales

44.6

Operating income

1.1

Net sales
Operating income or loss(△)
Net sales
Operating income or loss(△)
Net sales
Operating income or loss(△)
Net sales
Operating loss(△)

2022 Nishimoto Wismettac Group All rights reserved.

Year-on-year+13.0+39.0%+1.7+139.0%+1.2+11.8%

0.0

-

+0.1

+17.0%▲ 0.0▲29.0%

-

-

▲ 0.0

-

59.0

+14.3

+32.3%

2.9+1.7+158.6%

5

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

End of 12/2021

End of 03/2022

Amount/Rate ofincrease(decrease)

Main reasons for changes

Current assets

124.7

133.7

Non-current
assets

17.0

29.6+12.6 Lease assets (net) +10.2

141.7

163.4

+21.6

Current liabilities

36.6

41.9

+5.2 Trade payables +3.3

Non-current
liabilities

45.2

56.9

+11.7 Lease obligations +9.2

Total liabilities

81.9

98.9

+17.0

Total net assets

59.8

64.4

+4.6

Total liabilities and net assets

141.7

163.4

+21.6

Shareholders' equity ratio

41.9%

39.2%

▲2.8 pt

Current ratio

339.9%

319.0%▲21.0 pt

Total assets

2022 Nishimoto Wismettac Group All rights reserved.

and deposits ▲5.4, Trade+8.9 Cashreceivables +2.8, Inventories +11.4

6

(Ref.) Sales Composition Ratio by Region(Full-year forecast
after revision)

254.0● Consolidated sales (Entire Group)* Sales to external customers
Unit: billions of yen

213.2

158.3

172.0

182.2

182.6
168.4

Asia/Australia
EU
NA
Japan

FYE 12/2016

FYE 12/2017

FYE 12/2018

FYE 12/2019

FYE 12/2020

FYE 12/2021

SSP (Germany 2020/2),
C3C (France 2020/7)
joined the WMC Group as
consolidated subsidiaries

2022 Nishimoto Wismettac Group All rights reserved.

FYE 12/2022(Forecasts after revision)

Sco-Fro Group (Scotland
2021/2) joined the
WMC Group as aconsolidated subsidiary

BCM (Singapore 2022/1)
joined the WMC Group
as a consolidated
subsidiary7

Revision of Interim and Full-Year Earnings Forecasts
for the Fiscal Year Ending December 2022

2022 Nishimoto Wismettac Group All rights reserved.

Revision of Interim and Full-Year Earnings Forecasts for FYE 12/2022 (1)Profit continues at a level that enables the Company to absorb rises in costs and expenses to a certain extent mainly inNorth America, its key market, through price adjustments that reflect a tight supply-demand balance.
◆ Despite the strong sense of uncertainty about the future in the external environment, the interim and full-year profit
earnings forecasts have been revised based on the current business conditions.
◆

Initial forecasts(2022/2 Published)

Forecasts after revisionInterimFull Year

InterimFull YearNet sales

120.0 billion yen

240.0 billion yen

130.0 billion yen

254.0 billion yen

Operating income

2.8 billion yen

5.0 billion yen

5.0 billion yen

9.0 billion yen

Ordinary income

2.6 billion yen

4.7 billion yen

5.0 billion yen

9.0 billion yen

Net income attribute toowners of parent

1.9 billion yen

3.3 billion yen

3.5 billion yen

6.0 billion yen

Factors for revision of net sales and profits◆ In the full-year profit earnings forecasts for the fiscal year ending December 2022, which were disclosed in February of this year, it was assumed
that sales were expected to recover steadily due to the relaxation of COVID-19 regulations and that on the other hand, in terms of profitability,
in addition to price adjustments expected when logistics were stabilized and the supply-demand balance became normal, rises in the prices ofraw materials and the fares of marine transport would affect gross profits.
➢

Costs and expenses are growing continuously as initially expected, but in the current business conditions, profit continues at a level that enables theCompany to absorb rises in costs to a certain extent mainly in North America through price adjustments that reflect a tight supply-demand balance.

➢

There is a strong sense of uncertainty about the future in the second quarter and thereafter due to sharp rises in the price of energy and raw materials
affected by the situation in Ukraine, the rapid depreciation of yen, and the effects of lockdowns in China, but the interim and full-year earnings forecasts
have been revised based on the current business conditions.

➢

Initiatives and investments for the future will continue.

(Reference: Continued initiatives and investments for the future)◆

Evolution to a new business model: Promote various initiatives by developing an overseas management system, hiring specialized personnel, and developing
products for new sales channels.

◆

Strengthen the foundations of existing businesses: Continue to invest in improving warehouse operations and logistics systems and promoting labor-saving
measures.

2022 Nishimoto Wismettac Group All rights reserved.

9

Revision of Interim and Full-Year Earnings Forecasts for FYE 12/2022 (2)Planning
assumption

The yen/dollar exchange rate in the revised forecast is assumed to be 1$ = 120 yen.

Unit: billions of yen

Entirecompany

Existing

AFB

Agricultural& Seafood
Products

Domestic
BtoC

New

FY2020Results

FY2021Results

FY2022(2022/2
Published)

FY2022
Revised

Sales

168.4

213.2

240.0

254.0

Profit

1.9

7.3

5.0

9.0

Sales

165.7

207.3

224.7

240.0

Profit

3.9

10.5

8.3

11.6

Sales

116.3

159.8

171.6

191.0

Profit

3.0

10.5

7.7

11.6

Sales

45.8

43.9

48.9

45.0

Profit

0.8

▲0.1

0.5

0.0

Sales

3.6

3.7

4.1

4.0

Profit

0.1

0.1

0.1

0.0

Sales

2.7

6.0

15.3

14.0

Profit

▲2.0

▲3.2

▲3.3

▲2.6

(109.80)(110.00)(120.00)(USD exchange rate)(106.82)2022 Nishimoto Wismettac Group All rights reserved.

Comment
Sales growth seen in both existing and new
businesses. Continuing to strengthen systems
and investments for medium- to long-term
growth.
While the increase in sales will compensate forthe decrease in earnings due to the increasein expenses and other factors, investments willcontinue to be made to strengthen thebusiness foundation for the future.
Purchase costs and logistic expenses arecontinuing to rise, but the current market
conditions will remain favorable due to thecontinuation of the tight supply-demandconditions.
Unstable logistics and low yen value will affectgross profits. Efforts to build a system tostrengthen sales operations in Japan andabroad through organizational restructuring
will be promoted.
Aiming to increase sales by expanding therange of products handled and introducing an
online ordering system.
While continuing to invest in the evolution of
new business models, still remaining focusedon expanding sales to mainstream and othersales channels, which are currently being
strengthened.

10Breakdown of Strategic Investment
Continuing to invest in initiatives to strengthen the foundations of existing businesses and evolve into new businessmodels.
◆ With the formulation of the medium-term business plan and the revision of the full-year profit earnings forecasts,
the targets for the current period have been partially revised.
◆

Amount(including expenses/billions of yen)

Measures
1

2

2021

Results

2022

2022

0.8

0.2

Revised Q1 Results

Expansion
Business Fields◆ Creation of new businesses in theintersection of the fields of Food,
Healthcare, Ecology, New Lifestyleand Food informatics

Strengthening
Interregional
Cooperation◆ Formation and strengthening ofregional management teams◆ Product development andmainstream sales channel
development in Europe and
China

1.2

1.5

0.3

◆ Enhancement of the productdevelopment divisions

0.1

0.2

0.0

◆ SCM and IT infrastructure
investments

0.0

0.5

0.0

3
Strengthening
Profitability of
Existing Business◆ Organizational revitalization/
streamlining(NA, etc.) and reformof compensation system

0.5

Total
2022 Nishimoto Wismettac Group All rights reserved.

◆ Diversification of the business portfolio◆ Strengthening management andoperational capabilities in each region◆ Building business strategies forstrengthening mainstream sales channel,
etc., and building business strategies fordeepening transactions◆ Further expansion of the private brandproduct lineup◆ Development of health-conscious
products◆ Reduction of SG&A and logistics costs
and labor savings through digitaltransformation(DX)

0.5

0.1

0.0

◆ Strengthening organizational capabilities◆ Introduction of compensation system
based on company and staff performance◆ Stronger teamwork capability through theintroduction of internal
communication/coordination tools

0.2

0.3

0.1

◆ Capturing growth in overseas markets

0.2

0.2

0.0

◆ Capturing food service businesses
responding to the New Normal lifestyle

2.7

3.6

0.6

4

of a mechanism forDevelopment of ◆ Construction
overseas export of Japanese
New Businesses
agricultural products◆ Development of new services to
Derived fromthe restaurant industry (NewExisting Businesses
Normal eating habits)

Aims

11

Policy of Returning Profits to Shareholders

2022 Nishimoto Wismettac Group All rights reserved.

Policy of Returning Profits to Shareholders
Basic Policy◆ The company will continue to pay stable dividends while securing internal reserves for future business development andstrengthening the financial structure.
◆ The company considers the dividend payout ratio as an important indicator and aims for a consolidated dividend payout
ratio of approximately 30% for the full year.

Dividends for the Fiscal Year Ending December 2022
◆ The forecasts for interim and end-of-year dividends are determined in consideration of the above basic policy, thebusiness environment surrounding the Group, and future business outlook.
◆ With the recent revision of profit earnings forecasts, the interim dividend forecast has been revised from 35 yen per shareto 65 yen, and the end-of-year dividend forecast from 35 yen per share to 60 yen. The annual dividend has been
increased from 70 yen to 125 yen. The full-year dividend payout ratio is about 30%.

Dividend per share(yen)

Year-end
dividend

Interimdividend
Not paid

FY ended
December 2020
(Results)

2022 Nishimoto Wismettac Group All rights reserved.

Interimdividend

FY ended
December 2021
(Results)

FY ending
December 2022
(Forecast before
revision)

FY ending
December 2022
(Forecast afterrevision)13

Mid-term Business Plan

2022 Nishimoto Wismettac Group All rights reserved.

Contents•

Wismettac: Purpose and Mission

p.16– Background of our Mission– The Mission of Wismettac - Concept (To date)– The Mission of Wismettac - Concept (Future)•

Outline of the Group Strategy

p.20

•

Outline of the Plans by each Business Segment

p.21

•

Solution Development Business (Concept)

p.22

•

Solution Development Business (Status of Activities)

p.23

•

Open “Silk Road” Concept

p.24

•

Medium-term Financial Plan

p.25

(for the period between 2022 - 2024)
2022 Nishimoto Wismettac Group All rights reserved.

15

Wismettac's "Purpose" and "Mission"

PurposeStatement

MissionStatement
Our business model to bring our
Purpose a reality

Contribute to the well-being of humanity throughproviding the most cutting-edge and powerfulsolutions to customers and the food industry
around the world
To bring our Purpose a reality, we actively search global
best-in-class solutions for unmet needs and issues
which shall be brought to our attention throughour day-to-day close interactions with customers andthe food industry around the world.
In other words, we will be the link between the most
cutting-edge and best fit solutions and the issues orunmet needs identified through our global network.
To accomplish our mission,
we will commit ourselves to evolving our cross-border supply
chain into the "Silk Road in Food Industry".

2022 Nishimoto Wismettac Group All rights reserved.

Providing Japanese food, fruit andvegetables, and imported
processed foods→

Providing every type of solutions
from food to technology and services"From Japan to the World" &"From the World to Japan"→“World-to-World"- Interactive business in five regions

16

Background of Our Mission(Evolution into the "Silk Road in Food Industry")
The year of 2022 becomes the 110th anniversary for Wismettac Group. The Group was founded with the desire of bringing
Japanese food to the world Japanese people living abroad and, at the same time, foreign food to Japanese dining tables. We havedeveloped our business in the pursuit of our philosophy of "Bringing World’s Food to Japan & Japanese Food to the World".
In recent years, advances in transportation and information/communication technologies have promoted not only trading ofgoods(products) across borders, but also instantaneous connection of people and information. Our society has changed
significantly for the past 110 years. Accordingly, the food industry, which had been relatively slow to change in the past, are now
driven by strong demand for a change into a more diversified and efficient industry.
In such a business environment, our integrated cross-border supply chain and network that we have developed will remain one ofour greatest strengths. However, we will aspire to evolve further in the following three ways:
1) To develop a bilateral current cross-boarder supply chain centered on Asia into a truly global and multilateral ("World
to World“) supply chain where five regions (North America, Europe, China, Southeast Asia, and Japan) interact andtrade directly with each other.
2) To overhaul and re-engineer our business so as to solve the needs and problems of the food industry regardless ofwhether a solution is our current range of products or not. We will explore the problems and challenges of consumers
and companies related to the food industry, and will find the wisdom (Wisdom / Metta) that is nurtured consciouslyor unconsciously somewhere in the world and to creatively convert it into commercialized products and technologies.
- One approach is to focus on the following macro-socioeconomic dynamics: "global environmental changes","structural reform of the food industry due to development of digital technologies (AI and robotics)","integration of medical care and food for healthier life", and “shift in lifestyles for more flexible work
arrangements".
3) To make “our road” accessible and useful not only for the benefit of our own products and technologies, but also forthat of companies and people who would like to bring their own products and technologies to the world.
Our original mission was “Bringing World’s Food to Japan & Japanese Food to the World”.
Now, our next mission is to become “the link between the most cutting-edge and best fit solutions and the issues or unmet needs
identified through our global network.“
Wismettac Group is committed to further development.
2022 Nishimoto Wismettac Group All rights reserved.

17

The Mission of Wismettac - Concept (To date)
Although we have handled different ranges of food products, the seamless cross-border
supply chain we have built is in a bilateral & single direction (“from one region to one
region“) for each range of food products.
Suppliers

Customers

5R

5R

North
America

North
America(*)“Bringing World Food to Japan& Japanese Food to the World”

EuropeEuropeChina

Cross-boarder Food Supply Chain

Southeast
Asia

Food products
Supply Chain Function

ChinaSoutheast
Asia

Product development / PB label

Japan

Logistics

Trade management and food safety

Japan

Sourcing and contract packing arrangements

2022 Nishimoto Wismettac Group All rights reserved.

(*) 5 regions around the world

18

The Mission of Wismettac - Concept (Future)
We will ➀ strengthen further the supply chain functions we have cultivated to date, ② develop "service and technology"
solutions for needs identified through our network within the food industry in the 5Rs (five regions around the world), ➂ open up
our "Silk Road" for external research institutes and start-up companies, and; ④ expand products and services around the 5Rs
through our Silk Road

Suppliers“Become the link between the most cutting-edge and best fit
solutions and the issues or unmet needs for the food industry
across the regions”
Development and Expansionof Solution

5R

Needs
identification

3

North
America

Start-ups
Solution identificationand development

2

EuropeChina

Southeast
Asia

Research
institutes,
IP owners

1

5R
3

North
America

Technology & Services"Silk Road"

4

Food products
Expanded Supply Chain Function

Customers

Europe4

China

Southeast
Asia

Product development / PB label
Logistics

Japan

Trade management and food safety

Japan

Sourcing , contract packing arrangements and in-house production

2022 Nishimoto Wismettac Group All rights reserved.

19

Outline of the Group Strategy
We will capture further growth in the Asian food market by developing mainstream sales
channels and trading areas. In addition, we will develop new products and services based on
our global network and strengthen the cross-border food supply chain to evolve into the "Silk
Road in Food Industry".

Cross-border Food Supply Chain➢ Further penetration of the Japanese food market➢ Omni-channel models of the food service after the COVID-19
pandemic.
Opport ➢ Shift to local production in consuming countries
unities ➢ Oligopolization of the e-commerce and retail industry➢ More stringent food safety, traceability, and SDGs
requirements for the food industry
Response

Broader, More Resilient
Cross-border Food Supply Chains

Growth with the Asian Food Global Business[Broader]➢ Accelerate development of mainstream sales channels➢ Expand and promote sales in the Middle East, South America,
India, and Africa
Strategy[More Resilient]➢ Sophisticate our capability of the trade management, foodsafety, inventory control, and logistics➢ Improve our capabilities to develop the products more
adaptive to the local market➢ Evolve into a trading and wholesaler with in-house production
capabilities➢ Adapt to TCFD* and food traceability requirements"Silk Road in Food Industry"➢ Health-consciousness, telecommuting, and other lifestylechanges➢ Digitalization of the food supply chain➢ Transformation toward a circular economy➢ Transition to a society of health and longevity➢ Growing need for improvement of manpower productivity/ operational efficiency
Response

Evolution into the "Silk Road in Food Industry"

Accessible and attractive to all people

Development and expansion of new solutions[Attractive]➢ Develop nutrient rich and functional foods for the aged andthe sick➢ Explore and develop solutions for new lifestyles and acircular economy➢ Explore and develop solutions to solve workforce shortages
faced by the food industry[Accessible]➢ Customize services to ensure local acceptance andpenetration of solutions such as products, technologies, andservices* Task Force on Climate-related Financial Disclosures

We will be a company that provides solutions to meet the needs of the food industry worldwide.
2022 Nishimoto Wismettac Group All rights reserved.

20

Outline of the Plans by Business Segment
The Asian Food Global Business will capture mainstream sales channels and accelerate growth by improving
product development capabilities and local production capacity (including in-house production). The
Agricultural & Seafood Products Trading Business will improve the quality of its operations and increase
profitability.

Business Environment Perception➢➢

Asian Food
GlobalBusiness➢➢

Solution
Development
Business

Outline of Plans
1. Expansion of mainstream sales channels and trading areas• Expanding mainstream sales channels mainly in the U.S.
and Europe• Establishing our business hubs in the Middle East, SouthAmerica, India, and Africa• Penetrating Asian food products into the mainstream
customers with development of "Deskilled(easy-cook)"
products (ready-to-eat product, etc.)
2. Building a stronger and more efficient supply chain• Improving the food safety and traceability control• Seeking an optimized supply chain that combines imports
and local sourcing
3. Establishment of the local production capacity to achieve ourstable supply and cost competitiveness

Please refer to the next page for information on projects under considerationand the status of initiatives.

➢

Both the volume and value of fresh fruit imports areon the rise, and the market size is growing moderately
In relation to citrus fruits as one of our core productranges, the market size of grapefruit is shrinking, whilethat of oranges and lemons is slightly increasing. A
growth is expected for our other core products
Increase in exports of Japanese agricultural products
to Asian countries

1. Strengthening relationships with customers and production areas
and developing overseas business• Solution development for domestic and overseas farming
areas: overseas sales channel, marketing, support for overseas
production/cultivation, etc.
• Strengthen sales marketing capabilities to customers including
large retailers
2. Reshaping into a more efficient operational structure• Improved efficiency through integration of business IT systems• Reorganization into a function-based structure➢

Growth of the specialty food market. Sales channels arediversified, with major supermarkets and e-commercecompanies entering the market.
The organic food market in Japan is at an early stage incomparison with foreign countries: however, it isexpected to grow in the future.

1. Increasing manpower productivity (Digital Transformation)• Introduction of an online ordering system• Building omni-channel marketing capabilities
2. Wider varieties of health-conscious products such as organic
foods

Agricultural &➢Seafood
Products
Trading➢
BusinessJapan
Domestic
Business

Circa 10% growth of the Japanese food market andmainstream penetration in North America, Europe
and China
Ready-made/home-cooked meal consumption is on
the rise. In addition to traditional supermarkets, there
is a variety of purchase routes such as e-commerce,take-out and delivery.
Stricter food regulations in various countries, as well
as more stringent traceability requirements inmainstream
Even after the COVID-19 pandemic, the global foodsupply chain remains unstable behind the RussiaUkraine war and intensified political and economic
tensions between the Major Powers➢

2022 Nishimoto Wismettac Group All rights reserved.

21

Business Concept of Developing New Solution
In order to build a methodology for continuous business creation, we will accelerate the pace of
exploring needs and developing solutions. Our attention is drawn to macro-socioeconomic dynamics
for our business creation, which are regularly reviewed from the commercial feasibility point of view.
Projects in progressfor commercialization
Needs related to
Eco-friendly
movements
8

Needs
2
associatedwith changes 5in the Food 7

Industry

9

10

0

Needs
related to

Solution3
provided by 2 4 Medical
Care
Wismettac(Food, Technology,
Service)
1"Deskilled" product development(ready-to-eat product, etc.）

5 Regions

2

Export-support business
utilizing cross-border e-commerce

Between China
and Japan

3

Health-conscious food business(including some initiatives by existing
businesses)

China/Japan

4

Business to improve the quality of life
through foods for the sick and elderly

China/Japan

5
6(Healthcare)

6

Needs associatedwith New

Lifestyles

BtoB e-commerce platform business forpurchasing food products andingredients
Support for restaurants (foodservice
industry) to start omni-channel sales(incl. ready meals)

Japan

Japan/US

7

Agricultural products export-support
platform business (led by the Agri/Aqua Div.)

Japan/SE Asia8

Distribution of RAS aquaculture
products (led by the existing AFB Business)

Europe9Distribution of plant-based meat and fish
products (led by the existing AFB Business)

5 Regions10

Support for resource-saving farming
technology

Japan/
Australia/
US

Identify business ideas and solutions

02022 Nishimoto Wismettac Group All rights reserved.

1

Collaboration with Startups, universities,
research institutions, and VCs

Japan/ Europe/
China

22

Status of Activities to Develop New Solutions
For each activity to develop new solutions, gate reviews are regularly conducted to evaluate theprogress of the business and PoC. We will create and nurture numerous business groups with quickly
running the PDCA cycle on a global basis.
Present

Food

Distribution of
products tomajor U.S.
and European
retailersExpanded in 5Rs including
the U.S.

1

Development of Deskilled
products

2

Export-support business
utilizing cross-border ecommerce3

Development ofthrough omni-channel marketing
Health-conscious food business nutrient-dense & functional Sales
which coherently integrates online and offline marketing
food "Wistrition"

4

Business to improve the quality Development ofof life through foods for the
food products
for the sick and elderly
sick and elderly

5Technology&
Services

Product
development forthe mainstream
marketAcquisition of Sco-Fro,a Scottish aquatic products(seafood and processing)in progress

6

0
10

BtoB e-commerce platformbusiness forpurchasing food products andingredients
Support for restaurants(foodservice industry) to startomni-channel sales(incl. ready meals)
Collaboration with Startups,
universities, research
institutions, and VCs

2022 Nishimoto Wismettac Group All rights reserved.

Acquisition of BCM,
a Singaporean wholesalerof fruits/vegetables and processed
foods

Cross-border e-commerce of
our supplement "NATUMEDICA" products started

Boosting sales by sophisticating brandcommunication

Started DtoC sales of "食卓の名医™ (Shokutaku no Meii)" BtoB sales activities for hospitals and nursing care facilities
underway

Development of an e-commerce platform
to facilitate the purchase of food/ingredientsfor BtoB transactions
Research & Design
for Cloud Kitchen

Development and sales of"Deskilled" products, etc.

Development ofsales channels
outside ofJapan

Moving into
Development completed
marketing- JV established with partners
activities

Support business for ready-meal service provider- Launch of proof-of-concept(PoC): WisChef

Planning forcommercialization

Ideation activities in collaboration with domestic andPurchase of IP usage rights
foreign universities, research institutes, and CVC(Corporate(start of PoC)
Venture Capital)(*) Items 7, 8, and 9 are not included in the above roadmap as they are being implemented as existing businessor are derived from existing business.

23

Open "Silk Road" Concept
While developing our own solutions, we will also utilize the knowledge and the experience
gained through these efforts to support Start-ups with excellent solutions who aspire to
expand their business, especially overseas.

Assistance in scaling up solutions
Needs identification and sales channel development (franchising,sales agents)
Providing a network of partners and experts
IP and license management
Business management(corporate operations, financing, talent acquisition))Start-upcompanies
aroundthe world
Start-up companies that want to scale
up their technology and services.
They want to• expand overseas,• develop a new customer base,or/and• enhance their leading technology
and services, etc.
2022 Nishimoto Wismettac Group All rights reserved.

Customers

5R
North
America

Europe"Silk Road"

China

Southeast
Asia

Japan
24

Med-term Financial Plan (2022 – 2024)
We will achieve a moderate growth of the profit, as the revenue growth offsets a decline in grossprofit margin due to the normalization of the supply chain. We are aiming for 304.5 billion yen insales and 10 billion yen in operating income by 2024.
Assumption

The yen/dollar exchange rate in the forecast is assumed to be 1$=120 yen

Unit: billions of yen

EntirecompanyNew

FY2022

Revised forecast

FY2023

FY2024

213.2

254.0

279.2

304.5

Profit

7.3

9.0

9.5

10.0

Sales

207.3

240.0

264.2

287.5

Profit

10.5

11.6

12.2

12.5

Sales

159.8

191.0

210.0

230.0

Profit

10.5

11.6

11.5

11.6

Sales

43.9

45.0

50.0

53.0

Profit

▲0.1

0.0

0.6

0.8

Sales

3.7

4.0

4.2

4.5

Profit

0.1

0.0

0.1

0.1

Sales

6.0

14.0

15.0

17.0

Profit

▲3.2

▲2.6

▲2.7

▲2.5

(109.80)(120.00)(120.00)(120.00)

AFB

Domestic
BtoC

Results

Sales

Existing

Agricultural& Seafood
Products

FY2021(USD exchange rate)2022 Nishimoto Wismettac Group All rights reserved.

Comments:
Both existing and new sales grew, and we willcontinue to invest in and reinforce systems
for mid- to long-term growth.
While a decrease in profits due to increased
costs will be offset by an increase in sales,
investments will continue to be made tostrengthen the business foundation for ourcontinuous growth.
As global supply-demand balance returns tonormal and supply volume increases, we will
expect a moderate decline in gross profit
margin for us, however, this will be offset by
an increase in revenues.
The profitability will increase thanks tooperational efficiencies as well as recovery
from lower gross margins caused by supply
chain disruptions.
We are aiming to increase sales by expanding
product lineup, introducing online orderingsystem, etc.

We will continue to make investment indeveloping new solutions

25

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” fromthe Company name2022 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
food ingredients 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

1,813 (including 1,507 in the Asian Food Global Business) [As of December 31, 2021]◆ 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 sector

Subsidiaries and affiliates
Business sites

23 subsidiaries, 1 affiliate [As of March 31, 2022]
44*1 worldwide (including 24 in North America)
Locations in Japan, the U.S., Canada, Singapore, Australia, Netherlands, U.K., Germany,
Figures after reviewing the definition of theFrance, China, Hong Kong, Thailand, Vietnam and South Korea numberof business sites*1

Consolidated net sales

213.2 billion yen (FY ended December 2021)

Consolidated ordinary
income7.2 billion yen (FY ended December 2021)

Shareholders’ equity ratio* Overseas sales ratio 74.2%

41.9% (FY ended December 2021)

2022 Nishimoto Wismettac Group All rights reserved.

27

Wismettac Group in Japan and Abroad
The Company Group maintains 44 locations around the world in North America, Europe, Australia, and Asia and isdeveloping business globally. Among these, North America (the US and Canada) has 24 locations, which account forthe majority of sales.

・COMPTOIRS DES 3 CAPS・COMPTOIRS OCEANIQUES・TROPIC FISH
SSP Konsumgüter TRADE & CONSULT GmbH

Calgary Office

Berlin OfficeDenver Office

Wismettac Harro Foods Limited
WF Seoul Representative
Office

NTC Wismettac Europe B.V.

Sco-Fro Group Limited

Nishimoto Co., Ltd.
Wismettac Foods, Inc.
Privateport Co., Ltd.

Wismettac Asian Foods,
Inc. (Canada)
Las Vegas Office
Seattle Office
Sacramento Office

Wismettac Foods Shanghai Co., Ltd.

San Francisco Office

Shanghai IPM Co., Ltd.

Wismettac Asian Foods,
Inc.

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

NTC Wismettac Singapore Pte. Ltd.
Ban Choon Marketing Pte. Ltd.

Hawaii Office

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

WF Kobe Branch

San Diego OfficeMiami Office

Arizona OfficeOrlando Office

Houston OfficeAtlanta Office

Dallas Office
NTC Wismettac Australia Brisbane Office
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”

2022 Nishimoto Wismettac Group All rights reserved.

28

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 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 noobligation 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 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

2022 Nishimoto Wismettac Group All rights reserved.