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

November 14, 20182018 Nishimoto Wismettac Group All rights reserved.

Contents•

Summary of Financial Results for the ThirdQuarter of the Fiscal Year Ending December 2018

P. 2

•

Forecasts of Operating Results for the Fiscal YearEnding December 2018

P. 6

•

Policy for Returning Profits to Shareholders

P. 9

•

Medium-term Business Plan

P. 11

(Fiscal Year ending December 2018–Fiscal Year ending December 2020)2018 Nishimoto Wismettac Group All rights reserved.

1

Summary of Financial Results for the Third Quarter ofthe Fiscal Year Ending December 20182018 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the Third Quarter of the Fiscal Year Ending December 2018

 Net sales increased 5.1％ year-on-year. Breaking down the major items, there was a 5.2% increase year-on-year in theAsian Food Global Business and a 4.6% increase in the Agricultural & Seafood Products Trading Business.
 Operating income for the Asian Food Global Business (excluding the North American region) and the Agricultural &Seafood Products Trading Business increased from the same period in the previous year, but operating income for theAsian Food Global Business in the North America region decreased. As a result, total operating income decreased
0.8% year-on-year.
 Quarterly net income increased 43.3% year-on-year due to a reduction in the U.S. corporate tax rate.
(Unit: billions of yen; percentage to net sales is stated in parentheses)

FY ended December 2017
First nine months results

Net sales
Gross profitResults

Operating income
Ordinary income

128.9(100.0%)

22.0(17.1%)

4.8(3.7%)

4.4(3.5%)

First nine months results

Changes year-on-year

135.5

+5.1%

23.3

+5.9%

4.7

−0.8%

4.7+7.1%(100.0%)(17.2%)(3.5%)(3.5%)(1.8%)(2.5%)

3.3+43.3%

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

111.92 yen

109.61 yen−2.31 yen

Quarterly net income per share *188.55 yen

235.53 yen＋24.9%Net income attributable to owners ofparent

2.3

FY ending December 2018

* The Company carried out a five-for-one common stock split on June 1, 2017. Quarterly net income per share was calculated on the assumption that the stock split had been conducted atthe beginning of the previous fiscal year. The average number of shares during the period for the calculation of the quarterly net income per share was 12,513,569 shares in the first 9months of the fiscal year ended December 2017 (taking the stock split into consideration) and 14,353,082 shares in the first 9 months of the fiscal year ending December 2018.

2018 Nishimoto Wismettac Group All rights reserved.

3

Operating Results by Segment for the Third Quarter of the Fiscal Year Ending December 2018The Asian Food Global Business:Net sales increased 5.2% year-on-year due to the acquisition of new customers and the expansion of sales from existing customers in the NorthAmerican region and other regions [a 4.4% increase year-on-year in North America (a 6.6% increase on a local currency basis) and a 10.3% increaseyear-on-year in other regions on a consolidated yen basis].
Operating income decreased 15.1% year-on-year on the whole, reflecting the lower performance in North America compared to in the same period
in the previous year. In regions other than North America, operating income increased on the same period in the previous year, hence the businessbase has expanded.

The Agricultural & Seafood Products Trading Business:
Net sales increased 4.6% year-on-year, mainly due to the increase in exports and the arrangement of offshore trade. Net income also increased on
the same period in the previous year due to the recovery this year in sales of citrus fruits for the domestic market and tropical foods, compared to in
the previous year in which their sales had been sluggish.

Sales to external customers(Unit: billions of yen)
FY ended December 2017
First nine months results

Asian Food Global Business

Agricultural & Seafood Products Trading
Business
Other business
Total

87.37
39.03
2.58
128.99FY ending December 2018
First nine months results

Changes year-on-year

91.94
40.82
2.78
135.54

+5.2%
+4.6%
+7.7%
+5.1%

Operating income
FY ended December 2017
First nine months results
Asian Food Global Business

Agricultural & Seafood Products Trading
Business
Other businessTotal

2018 Nishimoto Wismettac Group All rights reserved.

4.44
0.34
−0.00
4.82

FY ending December 2018
First nine months results

3.770.94
0.04
4.78

Changes year-on-year−15.1%+176.1%—−0.8%
4Comparison of Operating Income for the First Nine Months of the Fiscal Year Ending December 2018

Exchange rate (US Dollar)

Compared to the same period in
the previous fiscal year

NorthAmerica−0.85First nine months of FY 2017：111.92 yen
First nine months of FY 2018：109.61 yen

Agricultural& Seafood
ProductsTradingBusiness+0.6

Other＋0.05

Adjustment for
consolidation−0.02

FX (NorthAmerica)−0.06(Unit: billions of yen)

Other thanNorth America+0.24

Main factors for a decrease from the same period in the previous fiscal year in North America

4.82(1) After the late first quarter of FY 2018, costs for foodstuffs including rice, a basic food
item, continued to soar. Despite the measures taken, such as revising wholesale prices,income for the first nine months was greatly pressured.
(2) The increase in expenses in the logistics department, including personnel expenses andgasoline prices, had an impact (continuing on from the previous year).
⇒ Continue efforts and strengthen structural reforms that have been conducted since thepast, such as improving the profit margin and keeping down logistic expenses.

First nine months resultsfor FY ended December
20172018 Nishimoto Wismettac Group All rights reserved.

4.78

First nine months resultsfor FY ending December
20185Forecasts of Operating Results for theFiscal Year Ending December 2018
* The forecasts of operating results has not been changed from the figures released on February
14, 2018.

2018 Nishimoto Wismettac Group All rights reserved.

Forecasts of Financial Results for the Fiscal Year Ending December 2018
(Unit: billions of yen, percentage of net sales is stated in parentheses)
FY ending December 2018
FY ended December 2017
Full-year results

Net sales
Gross profit

Operatingresults

Operating income
Ordinary income

135.5(100.0%)(100.0%)(17.3%)(17.2%)(3.7%)(3.5%)(3.4%)(3.5%)

29.8

6.3

5.9

3.0

Progress rate/
Difference between
forecast and results

73.3%

23.3

73.0%

4.7

70.6%

4.7

71.7%

3.3

72.5%

Full-year forecast Changes year-onyear

184.8

+7.4%

31.9

+7.1%

6.7

+7.1%

6.6

+12.9%

4.6+52.1%(100.0%)(17.3%)(3.7%)(3.6%)Net income attributable to ownersof parent(1.8%)(2.5%)

Percentage of North America(Net sales)

58.9%

—

—

57.3%

−1.6 pt

Percentage of North America(Operating income)

78.6%

—

—

77.2%

−1.4 pt

ROWC *1

20.3%

—

—

21.8%

＋1.5 pt

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

112.19 yen

109.61 yen−0.39 yen

110.00 yen−2.19 yen

Net income per share *2

236.37 yen

235.53 yen—

324.98 yen+37.5%

Group KPI

(*1)
(*2)

172.0

First nine monthsresults(2.5%)

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

2018 Nishimoto Wismettac Group All rights reserved.

7

Forecasts of Operating Results by Segment for the Fiscal Year ending December 2018
Sales to external customers
FY ended December
2017
Full-year results
Asian Food Global Business
Agricultural & Seafood Products
Trading Business
Other business
Total(Unit: billions of yen)

FY ending December 2018

First nine months
results

Progress rate

Full-year forecast Changes year-onyear

118.44

91.94

73.3%

125.43

+5.9%

49.64

40.82

74.4%

54.84

+10.5%

3.99

2.78

61.4%

4.53

+13.6%

172.07135.5473.3%

184.81+7.4%

Operating income
FY ended December
2017
Full-year results(Unit: billions of yen)

FY ending December 2018
First nine months
results

Progress rate

Full-year forecast Changes year-onyear

Asian Food Global Business

5.69

3.77

60.5%

6.24

+9.6%

Agricultural & Seafood Products
Trading Business

0.43

0.94

121.9%

0.77+79.0%

Other business

0.17

0.04

25.1%

0.19+12.3%

Adjustment

0.01

0.01

—−0.44—

Total

6.32

4.78

70.6%

6.77

+7.1%

2018 Nishimoto Wismettac Group All rights reserved.

8

Policy for Returning Profits to Shareholders

2018 Nishimoto Wismettac Group All rights reserved.

Policy for Returning Profits to Shareholders
Policy The Company’s basic policy for returning profits to shareholders is to continue providing stable dividends
while striving to maintain retained earnings to develop its businesses in the future and to improve its
financial strength.
 The Company considers the dividend payout ratio to be an important index and aims to maintain aconsolidated payout ratio of about 30% each year.
 The annual dividend for the fiscal year ending December 2018 is forecast to be 95 yen (40 yen interim
dividend and 55 yen forecast for the year-end dividend).

Dividend per share(yen)95 yen100

70 yen75

50Dividend
payout ratioof about30%

55
Year-end
dividend

40Interim
dividend

250
FY ended December 2017 (Results)

2018 Nishimoto Wismettac Group All rights reserved.

FY ending December 2018 (Result forinterim dividend / Forecast for yearend dividend)

10Medium-term Business Plan

(Fiscal Year ending December 2018–Fiscal Year ending December 2020)2018 Nishimoto Wismettac Group All rights reserved.

Basic Policy of the Medium-term Business Plan On the premise of the stable growth of the existing businesses, urgent tasks are to build-up a “foundation” of the new businesses andto “cultivate” them

Existing businessStable growth Mature North American market
 Domestic fruits and vegetablesbusiness Contribute to profits by global
business development in regions
other than North America

Improvements in productivity
and technological innovationin the agricultural, fishery andlivestock industry“Agritech”

New business
From B2B(C) to B2B,
promote the following: Capture corporate demand Develop and expand new content
 Export fruits and vegetables fromJapan and arrange offshore trade Strengthen the platform

Amazon effectDiversification of needs
Rise of the millennial
generation/Different cultures

2018 Nishimoto Wismettac Group All rights reserved.

Distribution
innovation/Contradiction andcoexistence of the Internet andreality

Internet of Things (IoT)/Artificial
Intelligence (AI)12Medium-term Business Plan: Net Sales and Operating Income by Segment(Unit: billions of yen)
Net sales

FY endedDecember
2017 Results

FY ending December 2018
Forecast

Changes yearon-year

FY ending December 2019
Changes yearon-year

Plan

FY ending December 2020
Changes yearon-year

Plan

Asian Food Global Business

118.4

125.4

+5.9%

133.5

+6.5%

159.3

+19.3%

Agricultural & Seafood
Products Trading Business

49.6

54.8

+10.5%

60.5+10.4%

64.4

+6.5%

3.9

4.5

+13.6%

4.8+6.6%

5.1+6.5%

172.0

184.8+7.4%

198.9+7.6%

229.0+15.1%

Other businessTotal(Unit: billions of yen)
Operating income

FY endedDecember
2017 Results

FY ending December 2018
Forecast

Changes yearon-year

FY ending December 2019
Changes yearon-year

Plan

FY ending December 2020
Changes yearon-year

Plan

Asian Food Global Business

5.6

6.2+9.6%

6.7+7.3%

7.7+15.8%

Agricultural & Seafood
Products Trading Business

0.4

0.7+79.0%

0.9+19.1%

1.0+16.0%

Other business

0.1

0.1+12.3%

0.2+43.7%

0.3+16.0%

Adjustment

0.0−0.4—−0.1—

−0.1—

Total

6.3

6.7+7.1%

7.7+14.6%

9.0+16.1%

2018 Nishimoto Wismettac Group All rights reserved.

13

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

2018 Nishimoto Wismettac Group All rights reserved.

Disclaimer
These materials are intended to provide financial information and management information, etc., on Nishimoto Co., Ltd.,and its affiliated companies (hereinafter collectively referred to as “the Company”), but the Company makes norepresentation 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 anduncertain elements in relation to economic trends, competition in the industry, market demand, foreign exchange rates, thetaxation system, various other 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 damages arising from the use of informationin these materials. Furthermore, the Company is under no obligation to revise and publish future forecasts in thesematerials based on new information or future events.
The Company pays close attention to accuracy 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 damages caused by such actions for any reason whatsoever. We appreciate yourunderstanding regarding this matter.
The information in these materials is not intended to solicit investments. When any investment is actually made, pleaserefrain from completely relying on the information in these materials to make an investment decision and instead make thedecision based on your own judgment.

Contact
Management Planning Department
Nishimoto Co., Ltd.
TEL: 03-6870-20152018 Nishimoto Wismettac Group All rights reserved.