Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022
(Japanese GAAP)

November 14, 2022

Company name: Nishimoto Co., Ltd.
Listed exchange: Tokyo
Code:
9260
URL: http://www.wismettac.com/
Representative:
Yoshiro Susaki, Chairman & President CEO
Contact:
Yuji Sasa, Director, Managing Executive Officer, CFO(Phone) 03-6870-2015
Scheduled date of filing of quarterly report:
November 14, 2022
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, 2022
(from January 1, 2022 to September 30, 2022)(1) Consolidated results of operations (cumulative)(Percentages denote year-on-year changes)
Net sales
Million yen

Operating income%

Million yen

Profit attributable toowners of parent

Ordinary income%

Million yen%

Million yen

8,672

74.7

5,679

75.6

4,963

—

3,233

788.6

Third quarter of FY ending
202,316
8,317
30.2
64.9
December 31, 2022
Third quarter of FY ended
155,378
5,042
24.9
—
December 31, 2021
(Note) Comprehensive income
Third quarter of FY ending December 31, 2022: 18,619 million yen (180.0%)
Third quarter of FY ended December 31, 2021: 6,649 million yen (—%)
Diluted net income per
Net income per share
share
Yen
Yen
Third quarter of FY ending
395.70394.09December 31, 2022
Third quarter of FY ended
225.30—December 31, 2021%

(2) Consolidated financial position
Total assets
Million yen

Net assets
Million yen

As of September 30, 2022
192,577(FY 2022 3Q)
As of December 31, 2021
141,769(FY 2021)(Reference)
Shareholders' equity
Third quarter of FY ending December 31, 2022:
FY ended December 31, 2021:

2.

Equity ratio%

76,54939.5

59,862

41.9

76,034 million yen
59,440 million yen

Dividends
Annual dividends
First quarter-end
Yen

Secondquarter-end

Third quarter-end
Yen

—
35.00
FY ended December 31, 2021—
70.00
FY ending December 31, 2022
FY ending December 31, 2022
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Year-end

Total

Yen

Yen

Yen

—
—

70.00

105.0075.00

145.003.

Consolidated financial results forecast for the fiscal year ending December 31, 2022
(from January 1, 2022 to December 31, 2022)

Net sales
Million yen

Operating income%

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

FY ending December
265,000
24.3
10,50043.8
10,50031, 2022(Note) Revision to the forecast for financial results announced most recently: None%

Million yen

%

Yen

45.7

7,000

39.2

487.70* Notes(1) Changes in significant subsidiaries during the first nine months of the fiscal year:
None(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
New – companies(Company name) – Excluded – companies (Company name) –(2) Application of accounting treatment specific to the preparation of quarterly consolidated
financial statements:(3) Changes in accounting policies, changes to accounting estimates, and restatements(i) Changes in accounting policies due to revisions of accounting standards:

Yes

Yes

(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 As of September
30, 2022
period (including treasury shares)(ii) Number of treasury shares at the end of the
As of September
30, 2022
period(iii) Average number of shares during the period
As of September
30, 2022(nine months ended September 30, 2022)

14,353,140 shares

December 31,
2021

14,353,140 shares

220 shares

December 31,
2021

153 shares

14,352,960 shares

September 30,
2021

14,352,993 shares* These quarterly financial results are not subject to quarterly review procedures.
* Explanation of the proper use of financial results forecasts and other notes(Cautionary note on forward-looking statements, etc.)
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 theachievement 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) Explanation of future forecasts such as consolidated financial
results forecasts" under the chapter titled "1. Qualitative information on quarterly financial results" on the page 4 of the attachment.
(How to obtain the quarterly financial results supplementary materials)
The quarterly financial results supplementary materials will be disclosed on TDnet on November 14, 2022 and will also be posted on the
Company's website.

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

 Attachment: Table of Contents
1. Qualitative information on quarterly financial results .............................................................................................. 2(1) Explanation of operating results ........................................................................................................................ 2(2) Explanation of financial position ....................................................................................................................... 3(3) Explanation of future forecasts such as consolidated financial results forecasts................................................ 4
2. Quarterly consolidated financial statements and major notes .................................................................................. 5(1) Quarterly consolidated balance sheet ................................................................................................................. 5(2) Quarterly consolidated statements of income and comprehensive income ........................................................ 7(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(Changes in accounting policy) ......................................................................................................................... 9(Additional information) .................................................................................................................................. 10(Segment information) ..................................................................................................................................... 11–1–

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

1. Qualitative information on quarterly financial results(1) Explanation of operating results
Forward-looking statements in the document are based on the judgment of the Company Group as of the end of the third quarterof the current consolidated fiscal year.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020; hereinafter referred to as the"Revenue Recognition Accounting Standard") has been applied since the beginning of the first quarter of the current consolidated
fiscal year, and compared to the previous accounting method, net sales for the third quarter of the current consolidated fiscal year
increased by 158 million yen. The impact on gross profit, operating income, ordinary income, and profit before income taxes isimmaterial. For details, please refer to "2. Quarterly consolidated financial statements and major notes, (3) Notes to the quarterly
consolidated financial statements (Changes in accounting policy)."
Year-on-year comparisons in the document refer to the results for the same period of the previous year before the application of
the Revenue Recognition Accounting Standard and other accounting standards.
[Outline of the first nine months of the fiscal year]
During the consolidated cumulative third quarter for the fiscal year ending December 31, 2022, while the global economy moved
toward normalization of economic activities due to the removal of regulations as a result of policy shifting to living with COVID19 in various countries, the rising geopolitical risks stemming from the situation in Ukraine and progression of inflation led to a
sharp rise in prices of raw materials and fuels worldwide. The impact of these developments on corporate activities and consumer
trend has resulted in rising concerns about economic slowdown.
Under such circumstances, the Company Group reacknowledged its mission as a food distributer and has been making efforts tosteadily supply goods while ensuring employee safety. The main businesses of the Company Group are the Asian Food Global
Business that distributes Asian food products and ingredients such as Japanese food around the world with a focus on North
America, as well as in Europe, China, South East Asia, Australia, etc., and the Agricultural & Seafood Products Trading Businessthat distributes fruits and vegetables, fishery products, etc. in domestic markets, as well as overseas markets through exports andoffshore trading. The Company Group also engages in business that distributes foreign brand foods, seasonal goods planned anddeveloped by the Company Group, and character goods to imported food stores, daily sundry shops, etc., in Japan, and in businessthat manufactures and distributes natural supplements. In addition, the Company Group is expanding its business in new areas
where the "food" and other domains, such as "healthcare," converge, with the aim to evolve into a company that develops andprovides solutions for various challenges facing the food industry.
As for the Asian Food Global Business, the Company Group has been actively promoting initiatives to achieve sustainable andstable incomes from the North America region and an expansion of the business platform in regions outside of North America
as one of our growth strategies. In the Agricultural & Seafood Products Trading Business, the Company Group has been working
to expand sales to its mainstay wholesale markets, mass retailers, home-meal replacement industries, and restaurant chains, etc.,
while also developing overseas distribution routes, including export of domestic fruits and vegetables, offshore trading, and thewholesale business in China.
As a result, with respect to the financial results for this consolidated cumulative third quarter, the Company had net sales of
202,316 million yen (30.2% increase year-on-year), operating income of 8,317 million yen (64.9% increase year-on-year),ordinary income of 8,672 million yen (74.7% increase year-on-year) and profit attributable to owners of parent of 5,679 million
yen (75.6% increase year-on-year).
Financial results by segment are as follows: It is noted that net sales of segments are net sales to external customers.
Effective from the first quarter of the current consolidated fiscal year, the Company has changed the classification method ofbusiness segments to be indicated as reporting segments, and comparisons and analysis for the third quarter of the current
consolidated fiscal year are based on the classification after the change.
[Outline of operating results by segment](i) Asian Food Global BusinessIn the Asian Food Global Business, for this consolidated cumulative third quarter, the Company had net sales of 157,795
million yen (35.6% increase year-on-year) and operating income of 9,662 million yen (70.8% increase year-on-year).
In the mainstay North American region, sales to both restaurant and grocery stores remained strong as COVID-19-related
regulations were lifted and the region recovered to its pre-pandemic normality. In addition to a recovery in demand, efforts
to appropriately pass on overall cost increases (manufacturers' selling prices, ocean freight, and other logistics expenses)
resulting from inflation and other factors contributed to the year-on-year increase in net sales. Besides, the rapid depreciationof the yen boosted net sales in yen terms (USD/yen exchange rate for the cumulative third quarter of the current fiscal year
was 128.05 yen, versus 108.50 yen in the same period of the previous year).
–2–

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

As for income, the cost of goods sold and overhead expenses continued to rise, but the tight supply-demand situation
remained due to delays in improving logistics and inventory conditions, and efforts to appropriately pass on prices, asmentioned above, helped to maintain a high profit margin. While we currently expect profit margin to be subject todownward pressure in the adjustment phases of inventories and prices amid rising concerns about economic slowdown andthe gradual process toward supply chain normalization, its impact was limited during this consolidated cumulative third
quarter. As a result, the Company achieved a significant increase in both net sales and income during this consolidated
cumulative third quarter compared to the same period of the previous year, when it was still under the lingering impact ofregulations related to COVID-19.
In regions outside of North America, in Europe, although the number of newly infected COVID-19 cases remained high,net sales achieved a steady recovery as in North America as economic activities were promoted as a result of the easing ofrelated regulations. However, in and after the latter half of the second quarter, the momentum of the recovery in performanceslowed down somewhat as we were affected by rising prices and interest rates, energy procurement difficulty, etc. In the
Asia and Oceania region, net sales declined in the first quarter due to tightened regulations brought on by the spread of a
new variant and shortages of products due to a deteriorating supply chain, but net sales recovered steadily in and after thesecond quarter as regulations were eased and supply shortages began to abate. On the other hand, we continued to facehigher costs due to soaring raw material prices and ocean freight and higher overhead expenses, mainly fuel and labor costs.
(ii) Agricultural & Seafood Products Trading BusinessIn the Agricultural & Seafood Products Trading Business, for the third quarter of the current consolidated fiscal year, theCompany had net sales of 42,060 million yen (14.2% increase year-on-year) and operating losses of 643 million yen(operating losses of 71 million yen in the same period of the previous year).
As for imported fruits, our main product, inflation in the country of origin, soaring ocean freight, and disruptions in arrival
shipping schedules increased logistics-related costs, while the rapid depreciation of the yen reduced the pricecompetitiveness against domestically-produced fruits and vegetables. Besides, the Company struggled to secure sales in thedomestic market in the face of the trend among consumers to reduce the frequency of fruit purchases amid the continuing
price hikes of daily necessities in general and some mass retailers that have reduced the handling of products in response tohigher selling prices that reflect higher cost. Nevertheless, the segment as a whole posted a year-on-year increase in net sales
thanks to the contribution of making Ban Choon Marketing Pte. Ltd., a major fruit and vegetable wholesaler in Singapore,a consolidated subsidiary in January of this year.
As for income, imported fruits, a core product, faced quality deterioration caused by the delayed arrival of container ships
as well as the aforementioned soaring costs, the aforementioned business environment also affected transaction volume, andwe chose sales measures that prioritize delivery in order to avoid inventory backlogs. As a result, income decreased year onyear.
(iii) Other businesses
In other businesses, for the third quarter of the current consolidated fiscal year, the Company had net sales of 2,460 million
yen (12.1% increase year-on-year) and operating losses of 227 million yen (operating losses of 51 million yen in the same
period of the previous year).
In the mainstay imported foods business, net sales and income grew steadily in the first quarter thanks to the success of the
Valentine's Day event, the biggest sales event of the year. However, income decreased in and after the second quarter mainly
due to the sharp depreciation of the yen combined with price increases of raw materials and a slowdown in sales to thesupermarkets, our main customer, amid price hikes of daily necessities in general.
In the supplement business, both net sales and income grew steadily due to the introduction of new products and expansionof the e-commerce business.
On the other hand, for the other businesses as a whole, the development of new businesses in the domestic market, such as
the expansion of a ready-made meal support business in collaboration with well-known restaurants and a food supply
business catering to post-operative and post-acute care patients, resulted in prior selling, general and administrative expenses
related to these new businesses, which led to a year-on-year increase in net sales and decrease in income.

(2) Explanation of financial position(Assets)
Total assets as of September 30, 2022 stood at 192,577 million yen, an increase of 50,808 million yen compared to December
31, 2021, and was mainly attributable to the following.
Total current assets as of September 30, 2022 amounted to 161,659 million yen, an increase of 36,922 million yen compared
to December 31, 2021. The increase in total current assets was due to an increase of 15,430 million yen in inventories, an–3–Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

increase of 13,249 million yen in cash and deposits, and an increase of 6,914 million yen in notes and accounts receivable—
trade.
Total non-current assets as of September 30, 2022, came to 30,918 million yen, an increase of 13,886 million yen compared
to December 31, 2021. The increase in total non-current assets was due to an increase of 11,256 million yen in leased assets,net, and an increase of 1,649 million yen in goodwill.
(Liabilities)
Total liabilities as of September 30, 2022 stood at 116,028 million yen, an increase of 34,121 million yen compared to
December 31, 2021, and was mainly attributable to the following.
Total current liabilities as of September 30, 2022, amounted to 39,790 million yen, an increase of 3,097 million yen
compared to December 31, 2021. The increase in total current liabilities was due to an increase of 2,225 million yen in shortterm loans payable, an increase of 2,207 million yen in lease obligations, an increase of 999 million yen in notes and accounts
payable—trade, and an increase of 451 million yen in other current liabilities including accrued expenses, despite a decreaseof 2,855 million yen in the current portion of long-term loans payable.
Total non-current liabilities as of September 30, 2022 was 76,237 million yen (an increase of 31,023 million yen compared
to December 31, 2021). The increase in non-current liabilities was due to an increase of 21,771 million yen in long-termloans payable and an increase of 9,547 million yen in lease obligations.
(Net assets)
Total net assets as of September 30, 2022 amounted to 76,549 million yen, an increase of 16,687 million yen compared to
December 31, 2021. The increase in total net assets is mainly due to an increase of 12,871 million yen in foreign currencytranslation adjustment and an increase of 3,706 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, 2022 are described in the Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending December 31, 2022 (Japanese GAAP), published on August 12, 2022. The
forecasts remain unchanged.

–4–Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
FY 2021(As of December 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Leased assets, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets–5–(Millions of yen)
Third quarter of FY 2022
(As of September 30, 2022)

65,64722,45434,497
2,539(402)
124,737

78,89629,36949,927
3,898(432)
161,659

2,909
421
357
1,453
201
5,344

3,179
495
373
12,709243
17,001

4,096
290
790
4,415
51
9,644

5,746
244
1,255
4,438
52
11,736

262
893
746
148
(7)
2,043
17,032
141,769

387
950
679
168
(7)
2,179
30,918
192,577

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

FY 2021(As of December 31, 2021)(Millions of yen)
Third quarter of FY 2022
(As of September 30, 2022)

15,269
3,395
9,221
386
3,347
363
1,279
157
15
3,256
36,693

16,268
5,620
6,365
2,593
3,504
442
1,176
105
3
3,708
39,79040,015
1,115
1,209
135
111
131
2,494
45,213
81,906

61,787
10,663
1,316
101
370
127
1,871
76,237116,028

2,646
6,531
47,578(0)56,7552,646
6,531
51,285(0)60,462

8
9
2,666
2,684
422
59,862
141,7697
25
15,53815,571
515
76,549192,577

Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable—other
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for shareholders' benefits
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for bonuses
Provision for share-based remuneration
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets–6–

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
First nine months ended September 30, 2022

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodInsurance benefits received
Foreign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes—current
Income taxes—deferred
Total income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

First nine months of FY 2021
(January 1, 2021
to September 30, 2021)
155,378
126,163
29,214
24,171
5,042(Millions of yen)First nine months of FY 2022
(January 1, 2022
to September 30, 2022)
202,316
161,659
40,65632,339
8,317

42

185

—

74

3
132
2
40
221

0
429
5
104
799

270
9
4
17
301
4,963

438
—
—
5
444
8,672

174
174

—
—

—
5,137
1,767
110
1,878
3,259
25
3,233

—
8,672
2,820
159
2,979
5,693
13
5,679

–7–

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

Quarterly consolidated statement of comprehensive income
First nine months ended September 30, 2022

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

First nine months of FY 2021
(January 1, 2021
to September 30, 2021)
3,259(Millions of yen)First nine months of FY 2022
(January 1, 2022
to September 30, 2022)
5,693

7
3
3,342
18

(0)
16
12,862
-

17

48

3,389
6,649

12,926
18,6196,614

18,56634

53(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests–8–

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

(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 net income before taxes
by an effective tax rate, which was estimated as the rate after the application of tax effect accounting to net income before
taxes for the fiscal year including the third quarter of the fiscal year.
(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020;
hereinafter referred to as the "Revenue Recognition Accounting Standard") from the beginning of the first quarter of thecurrent consolidated fiscal year, and recognized revenue at the amount expected to be received in exchange for the promised
goods or services when control of the promised goods or services has been transferred to the customer.
As a result, in the domestic sales of fresh fruits and vegetables in the Agricultural & Seafood Products Trading Business, theCompany previously recognized revenue when the selling price to the customer was determined but changed the method torecognize revenue when the customer is able to pick up the product from the designated warehouse at its discretion. In
addition, center fees and other payments made to customers, which were previously treated as cost of sales are now deductedfrom the transaction price.
As for the application of the Revenue Recognition Accounting Standard and other accounting standards, in accordance withthe transitional treatment prescribed in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard, thecumulative effect of retrospective application of the new accounting policy prior to the beginning of the first quarter of thecurrent consolidated fiscal year is added to or deducted from retained earnings at the beginning of the first quarter of thecurrent consolidated fiscal year, and the new accounting policy is applied from such beginning balance.
As a result, net sales increased by 158 million yen, and gross profit, operating income, ordinary income, and profit before
income taxes each decreased by 63 million yen during the third quarter of the current consolidated fiscal year. In addition,
the balance of retained earnings at the beginning of the period increased by 36 million yen.
In accordance with the transitional treatment prescribed in Paragraph 28-15 of the "Accounting Standard for Quarterly
Financial Reporting" (ASBJ Statement No. 12, March 31, 2020), information disaggregating revenue from contracts withcustomers for the third quarter of the previous consolidated fiscal year is not presented.
(Application of Accounting Standard for Calculation of Fair Value)
The "Accounting Standard for Calculation of Fair Value" (ASBJ Statement No. 30, July 4, 2019; hereinafter referred to as"Fair Value Calculation Accounting Standard") is applied from the beginning of the first quarter of the current consolidated
fiscal year, and in accordance with Paragraph 19 of the Fair Value Calculation Accounting Standard and transitional treatmentprescribed in Paragraph 44-2 of "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019),
the new accounting policy prescribed by the Fair Value Calculation Accounting Standard will be applied prospectively. Thereis no impact on the quarterly consolidated financial statements.
(Application of U.S. GAAP ASU No. 2016-02 "Leases")
The Company and its consolidated subsidiaries in the United States have applied ASU No. 2016-02 "Leases" (hereinafterreferred to as the "Standard") effective from the first quarter of the current consolidated fiscal year. As a result, in principle,
all leases of lessees are accounted for as leased assets, net and lease obligations.
–9–Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

As a result of the application of this standard, property, plant and equipment, current liabilities, and non-current liabilities
increased by 10,552 million yen, 2,125 million yen, and 8,958 million yen, respectively, in the consolidated balance sheet for
the third quarter of the current consolidated fiscal year. The effect of this change on profit and loss for the third quarter of thecurrent consolidated fiscal year and segment information is immaterial.
(Additional information)
Accounting estimate associated with the novel coronavirus pandemic
There have been no significant changes in the assumptions regarding the impact of the COVID-19 pandemic, which were
described under Additional information—Accounting estimate associated with the novel coronavirus pandemic in theConsolidated Financial Results for the Fiscal Year Ended December 31, 2021.

– 10 –

Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

(Segment information)
I.

First nine months of the fiscal year (from January 1, 2021 to September 30, 2021)

1.

Information related to net sales and profits/losses by reporting segment(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products Other business
Global BusinessTrading Business

Total

Adjustment(Note 1)

Amounts recordedin the quarterly
consolidated
statement of income(Note 2)

Net sales
Sales to external customers

116,356

36,826

2,195

155,378

Intersegment sales or transfers

4,471

0

4,472

－
(4,472)

Total

120,828
5,657

36,826
(71)

－
2,195
(51)

159,850
5,533(4,472)(491)

Segment profit/loss

155,378－
155,378
5,042(Note) 1. "Adjustment" for segment profit or loss in the amount of (491) million yen includes (119) million yen for eliminationof intersegment transactions and (371) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of dividend income from reporting
segments, and company expenses mainly comprise general and administrative expenses not attributed to reporting
segments.
2. The segment profit or loss is reconciled with the operating income on the Quarterly Consolidated Statement of Income.
2.

Information related to impairment loss of non-current assets and goodwill by reporting segment(Material fluctuation in goodwill)In the Asian Food Global Business segment, 100% of shares of Interlock Investments Limited was acquired, and the company
was made into a consolidated subsidiary. The increase in goodwill attributable to these events is 822 million yen in the previous
consolidated cumulative third quarter
The goodwill is an amount calculated provisionally because the acquisition cost is not fully distributed in the previous
consolidated financial third quarter.

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Nishimoto Co., Ltd. - Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022

II.

First nine months of the fiscal year (from January 1, 2022 to September 30, 2022)

1.

Information related to net sales and profits/losses and revenue breakdown by reportable segment(Millions of yen)
Reporting segment
Agricultural &Asian Food
Seafood Products Other business
Global BusinessTrading BusinessNet sales
Japan

Total

Adjustment(Note 1)

Amounts recordedin the quarterly
consolidated
statement of income(Note 2)

5,935

34,0772,460

42,473－42,473

North America

114,048－－

114,048－

114,048

Europe29,296－－29,296－29,296

8,515

7,983

－

16,498－16,498

157,795

42,0602,460

202,316－

202,316

Sales to external customers

157,795

42,0602,460

202,316－

202,316

Intersegment sales or transfers
Total
Segment profit or loss

5,381
163,176
9,662

042,060
(643)

－
2,460
(227)

5,381
207,697
8,791(5,381)(5,381)(473)－
202,316
8,317

Other
Revenue from contracts withcustomers(Note) 1. "Adjustment" for segment profit or loss in the amount of (473) million yen includes 0 million yen for elimination ofintersegment transactions and (474) million yen for company profit/loss not allotted to reporting segments (netcompany profits and net company expenses). Company profits consist mainly of management guidance fees from
reporting segments, and company expenses mainly comprise general and administrative expenses not attributed toreporting segments.
2. The segment profit or loss is reconciled with the operating income on the Quarterly Consolidated Statement of Income.
2.

Matters related to changes in reporting segments(Change in classification of reporting segment)
Effective from the first quarter of the current consolidated fiscal year, following a partial review of performance management
categories within the Company Group, the Company has revised its classification method of business segments and changed the"World Gift Business" previously included in the "Other businesses" segment to the "Agricultural & Seafood Trading Business."
The segment information for the third quarter of the previous consolidated fiscal year is presented based on the classification
method after the change.
(Application of account standard for revenue recognition)
As described in "Changes in accounting policy," the Company has applied the Revenue Recognition Accounting Standard andother accounting standards from the beginning of the first quarter of the current consolidated fiscal year, and has changed its
accounting method for revenue recognition, and therefore, the calculation method of profit or loss by business segment has beenchanged in the same manner.
As a result of this change, compared with the previous method, net sales and segment loss of the Agricultural & Seafood Products
Trading Business increased by 158 million yen and 63 million yen, respectively, during the cumulative third quarter of the current
consolidated fiscal year.

3.

Information related to impairment loss of non-current assets and goodwill by reporting segment(Material fluctuation in goodwill)In the Agricultural & Seafood Products Trading Business segment, the Company acquired 100% shares of Ban Choon Marketing
Pte. Ltd. as its consolidated subsidiary. The increase in goodwill attributable to this event is 1,621 million yen in this consolidated
cumulative third quarter.
The goodwill is an amount calculated provisionally because the acquisition cost is not fully distributed in this consolidated
financial third quarter.

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