Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020
(Japanese GAAP)May 14, 2020

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(Phone) 03-6870-2015
Scheduled date of filing of quarterly report:
May 15, 2020
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 first quarter of the fiscal year ending December 31, 2020
(from January 1, 2020 to March 31, 2020)(1) Consolidated results of operations (cumulative)(Percentages denote year-on-year changes)
Net sales

Operating income

Million yen%

Million yen%

Million yen%

Million yen

%

(270)

－

113

(88.8)

1,452

(5.2)

1,017

(8.8)

First quarter of FY ending
43,058(1.6)
5(99.6)
December 31, 2020
First quarter of FY ended
43,742
2.2
1,428(13.1)
December 31, 2019
(Note) Comprehensive income
First quarter of FY ending December 31, 2020: (576) million yen (—%)
First quarter of FY ended December 31, 2019: (1,111) million yen (—%)
Diluted net income per
Net income per share
share
First quarter of FY ending
December 31, 2020
First quarter of FY ended
December 31, 2019

Profit attributable toowners of parent

Ordinary income

Yen

Yen

7.92

—

70.90

—

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of March 31, 2020
101,182(FY 2020 1Q)
As of December 31, 2019
96,587(FY 2019)(Reference)
Shareholders’ equity
First quarter of FY ending December 31, 2020:
FY ended December 31, 2019:2.

Equity ratio

Million yen%

50,97050.4

52,33754.2

50,970 million yen
52,337 million yen

Dividends
Annual dividends
First quarter-end
Yen

Secondquarter-end

Third quarter-end
Yen

Yen

Year-end

Total
Yen

Yen

FY ended December 31, 2019
—
40.00
—
55.00
95.00
FY ending December 31, 2020—
FY ending December 31, 2020————
(Forecast)(Note) Revision to the forecast for dividends announced most recently: Yes
The consolidated financial results forecast announced on February 14, 2020 has been changed to "TBD" and, in conjunction
with this, the forecast for dividends for the fiscal year ending December 2020 announced on the same day has been withdrawn
and changed to "TBD."

3.

Consolidated financial results forecast for the fiscal year ending December 31, 2020
(from January 1, 2020 to December 31, 2020)

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

Operating income%

Million yen%

Million yen%

Million yen%

Yen

First half of FY ending
—
—
—
—
—
—
—
—
—
December 31, 2020
FY ending December
—
—
—
—
—
—
—
—
—
31, 2020(Note) Revision to the forecast for financial results announced most recently: Yes
The impact of the novel coronavirus pandemic on our business activities and business results is now under review and, since
it is difficult to properly and reasonably calculate the consolidated financial results forecast presently, we have withdrawn the
consolidated financial results forecast announced on February 14, 2020 and will determine it later. We will disclose it promptly
when a proper and reasonable calculation becomes possible.

* Notes(1) Changes in significant subsidiaries during the first three 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

None

(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 March 31,
2020
period (including treasury shares)(ii) Number of treasury shares at the end of the
As of March 31,
2020
period(iii) Average number of shares during the period
As of March 31,
2020(three months ended March 31, 2020)

14,353,140 shares

December 31,
2019

14,353,140 shares

112 shares

December 31,
2019

112 shares

14,353,028 shares

March 31, 2019 14,353,028 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 3 of the attachment.
(How to obtain the quarterly financial results supplementary materials)
The quarterly financial results supplementary materials will be disclosed on TDnet on May 14, 2020 and will also be posted on the
Company’s website.

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

 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................................................ 3
2. Quarterly consolidated financial statements and major notes .................................................................................. 4(1) Quarterly consolidated balance sheet ................................................................................................................. 4(2) Quarterly consolidated statements of income and comprehensive income ........................................................ 6(3) Notes to the quarterly consolidated financial statements ................................................................................... 8(Notes to assumption of going concern) ............................................................................................................ 8(Notes on significant changes in shareholders’ equity) ...................................................................................... 8(Specific accounting treatment applied to the preparation of the quarterly consolidated financial
statements) ......................................................................................................................................................... 8(Additional information) .................................................................................................................................... 8(Segment information) ....................................................................................................................................... 9(Business combination and other relationships)............................................................................................... 10–1–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

1. Qualitative information on quarterly financial results(1) Explanation of operating results[Outline of the first three months of the fiscal year]
This consolidated cumulative first quarter saw a tough situation where infection by a novel coronavirus breaking out in Wuhan,
China last December spread worldwide and emergency declarations and lockdowns were invoked in Europe and the U.S. in
March. As a result, consumer spending fell rapidly, especially since March, affecting the performance of companies, particularly
in industries such as tourism, restaurants and aviation, and there is an increasing sense of economic uncertainty worldwide.
In Japan, too, consumer spending is slowing down because of a decrease in inbound tourists due to a restriction on travel to andfrom foreign countries and a request to refrain from going on outings since March.
Under these circumstances, the Company Group worked to maintain and expand its operating results by running two main
businesses: the Asian Food Global Business that distributes Asian food products and ingredients such as Japanese food aroundthe world with a focus on North America, as well as in Europe, China, South East Asia, Australia, etc., and the Agricultural &Seafood Products Trading Business that distributes fruits and vegetables, fishery products, etc., in domestic markets, as well as
overseas markets through exports and offshore trading.
As for the Asian Food Global Business, the Company Group has been actively promoting a structural reform to continuously
achieve sustainable and stable incomes from the North American region and an expansion of the business platform in regions
outside of North America as one of our growth strategies. As for the Agricultural & Seafood Products Trading Business, theCompany Group has been working on expanding sales to the wholesale market, which is the main distribution route, massretailers, restaurant chains, home-meal replacement industries, etc. and overseas distribution routes (export of domestic fruits
and vegetables, offshore trading in fruits and vegetables, wholesale business in China, etc.).
As a result, with respect to the financial results for the first quarter of the current consolidated fiscal year, the Company had net
sales of 43,058 million yen (1.6% decrease year-on-year), operating income of 5 million yen (99.6% decrease year-on-year),ordinary losses of 270 million yen (ordinary income of 1,452 million yen in the same period of the previous year), and profit
attributable to owners of parent of 113 million yen (88.8% decrease year-on-year).
Financial results by segment are as follows: It is noted that net sales of segments are net sales to external customers.
[Outline of operating results by segment](i) Asian Food Global BusinessIn the Asian Food Global Business, for the first quarter of the current consolidated fiscal year, the Company had net salesof 31,126 million yen (0.2% increase year-on-year) and operating income of 65 million yen (94.5% decrease year-on-year).
In January and February, sales in the North American region did well but, since March, sales to the restaurant industry,
which is the main customer of the Company Group, fell rapidly and significantly due to some areas going into lockdown.
Despite the growth of sales to retailers, the net sales through the first quarter decreased slightly. The operating income
significantly decreased because of the provision of allowance for doubtful accounts considering the impact of the novel
coronavirus pandemic since April, in addition to the increase in payroll intended for stable business operations and theincrease in SG&A expenses in preparation for new business start-ups and so on.
In regions outside of North America, too, income decreased due to a fall of sales to the restaurant industry from the impactof the novel coronavirus pandemic, however, operating income increased because SSP Konsumgüter TRADE & CONSULT
GmbH, which was an equity method affiliate, has become a consolidated subsidiary. Profits decreased due to an increase inpersonnel costs associated with the strengthening of management to expand the business platform.
(ii) Agricultural & Seafood Products Trading BusinessIn the Agricultural & Seafood Products Trading Business, for the first quarter of the current consolidated fiscal year, theCompany had net sales of 10,719 million yen (6.6% decrease year-on-year) and operating income of 24 million yen (81.0%
decrease year-on-year).
Net sales decreased because of a decline in sales of citrus fruit and imported vegetables affected by the warm winter,lowering of prices due to fiercer competition and, in addition, a decline in sales of fruit and frozen agricultural products to
the restaurant industry since February as a result of the novel coronavirus pandemic. The profit declined mainly due to adecrease in income.
(iii) Other businesses
In other businesses, for the first quarter of the current consolidated fiscal year, the Company had net sales of 1,212 million
yen (2.2% increase year-on-year) and operating income of 101 million yen (10.0% decrease year-on year).

–2–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

Despite steady sales for the main products of the amenity food business, net sales increased just slightly because of sluggish
growth in event goods sales as a result of department stores refraining from business due to the impact of the novel
coronavirus pandemic. Consequently, the sales are insufficient to cover the increased SG&A expenses, and profit decreased.

(2) Explanation of financial position(Assets)
Total assets as of March 31, 2020 stood at 101,182 million yen, an increase of 4,594 million yen compared to December 31,
2019, and was mainly attributable to the following.
Total current assets as of March 31, 2020 amounted to 90,314 million yen, an increase of 2,353 million yen compared to
December 31, 2019. The increase in total current assets was due to an increase of 4,158 million yen in inventories and anincrease of 639 million yen in current and other assets including advances, despite a decrease of 1,471 million yen in notes
and accounts receivable.
Total non-current assets as of March 31, 2020, came to 10,867 million yen, an increase of 2,240 million yen compared to
December 31, 2019. The increase in total non-current assets is due to an increase of 2,794 million yen in goodwill, despitea decrease of 628 million yen in investments and other assets, including long-term loan receivables.
(Liabilities)
Total liabilities as of March 31, 2020 stood at 50,211 million yen, an increase of 5,960 million yen compared to December
31, 2019, and was mainly attributable to the following.
Total current liabilities as of March 31, 2020, amounted to 20,273 million yen, an increase of 1,214 million yen compared
to December 31, 2019. The increase in total current liabilities is due to increases of 963 million yen in accounts payable and834 million yen in notes and accounts payable, despite decreases of 327 million yen in short-term loans payable and 127
million yen in provision for directors’ bonuses.
Total non-current liabilities as of March 31, 2020 was 29,937 million yen (an increase of 4,746 million yen compared to
December 31, 2019). The increase in total non-current liabilities is due to an increase of 4,513 million yen in long-termloans payable.
(Net assets)
Total net assets as of December 31, 2020 amounted to 50,970 million yen, a decrease of 1,366 million yen compared to
December 31, 2019. The decrease in total net assets is mainly due to decreases of 675 million yen in retained earnings and675 million yen in foreign currency translation adjustment.

(3) Explanation of future forecasts such as consolidated financial results forecasts
Due to the novel coronavirus pandemic, governments throughout the world restricted outings and ordered lockdowns that haveforced the retail and restaurant industries to refrain from or stop doing business. Since mid-March, the Company Group received
remarkably fewer orders mainly from the restaurant industry in North America, Europe and Asia (including Japan), which
affected its business results. Since the last half of April, some countries are starting to lift the restriction on outings, but caution
is still required.
The impact on our future business activities and business results is now under review and, since it is difficult to properly andreasonably calculate the consolidated financial results forecast presently, we have withdrawn the consolidated financial results
forecast announced on February 14, 2020 and will determine it at a later date. We will disclose it promptly when a proper andreasonable calculation becomes possible.

–3–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
FY 2019(As of December 31, 2019)
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–4–(Millions of yen)First quarter of FY 2020
(As of March 31, 2020)

39,13019,407
26,672
2,925(175)
87,96039,022
17,93530,8303,564(1,039)90,314

2,609
438
208
467
186
3,910

2,445
469
274
559
203
3,953

—
417
12
330
62
823

2,794
384
187
246
61
3,673

1,164
926
1,092
777
(67)
3,893
8,627
96,587

1,064
879
1,215
148
(66)
3,240
10,867101,182

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

FY 2019(As of December 31, 2019)(Millions of yen)First quarter of FY 2020
(As of March 31, 2020)

9,993
2,890
143
206
2,592
144
641
137
7
2,301
19,058

10,827
2,562
133
200
3,556
111
557
10
7
2,306
20,27322,215
265
66
—
58
645
1,527
413
25,191
44,25026,728
351
53
20
—
668
1,538
577
29,93750,211

2,646
6,531
43,112(0)52,2902,646
6,531
42,437(0)51,6148
6
31
0
46
52,337
96,587

2
(2)
(643)
0
(643)
50,970101,182

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 directors' bonuses
Provision for directors’ retirement benefits
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets–5–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
First three months ending March 31, 2020

Net sales
Cost of sales

43,74235,821(Millions of yen)First three months of FY 2020
(January 1, 2020
to March 31, 2020)
43,05835,135Gross profit
Selling, general and administrative expenses
Operating income

7,920
6,491
1,428

7,923
7,918
5

54

41

2

7

—
—
17

16
1
8

73

75

30
18
0

31
318
1

First three months of FY 2019
(January 1, 2019
to March 31, 2019)

Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodInsurance benefits received
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income or loss
Extraordinary income
Marginal gain for gradual acquisition
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

–6–

49

350

1,452

(270)

—
—

325
325

—
1,452
457
(22)
434
1,017
—
1,017

—
55
72
(130)
(58)
113
—
113

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

Quarterly consolidated statement of comprehensive income
First three months ending March 31, 2020

1,017

(Millions of yen)First three months of FY 2020
(January 1, 2020
to March 31, 2020)
113

0
3
112
0

(6)
(8)
(651)
0

(22)

(23)

94
1,111

(690)
(576)

1,111

(576)

—

—

First three months of FY 2019
(January 1, 2019
to March 31, 2019)
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(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests–7–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

(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.
(Specific accounting treatment applied 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 aneffective 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 first quarter of the fiscal year.
(Additional information)
Due to the novel coronavirus pandemic, some regions, especially in North America, invoked a lockdown in March and sales
mainly to the restaurant industry, which is the main customer of the Company Group, fell rapidly and significantly.
Under these circumstances, the Company Group provided an additional 818 million yen as an allowance for doubtful accounts
in this consolidated financial first quarter in consideration of the worsening credit status of customers.
The amount provided as the allowance for doubtful accounts is determined according to the recoverability of receivables, taking
into consideration the status of recovery of receivables and the status of the main customers since the end of this consolidated
financial first quarter.

–8–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

(Segment information)[Segment information]
First three months of the fiscal year (from January 1, 2019 to March 31, 2019)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 BusinessNet sales
Sales to external customers

Amounts recordedin the quarterly
consolidated
statement of income(Note 2)Adjustment(Note 1)

Total

31,077

11,477

1,186

43,742－

Intersegment sales or transfers

4,218

0

－

4,219

(4,219)－Total

35,295
1,200

11,478
126

1,186
113

47,961
1,441(4,219)(12)

43,742
1,428

Segment profit

43,742(Note) 1. "Adjustment" for segment profit in the amount of (12) million yen includes (1,396) million yen for elimination ofintersegment transactions and 1,384 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 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
No relevant items.

First three months of the fiscal year (from January 1, 2020 to March 31, 2020)
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 BusinessNet sales
Sales to external customers

Amounts recordedin the quarterly
consolidated
statement of income(Note 2)Adjustment(Note 1)

Total

31,126

10,7191,212

43,058－Intersegment sales or transfers

3,883

0

－

3,883

(3,883)－

Total

35,00965

10,719
24

1,212
101

46,942
191(3,883)(186)

43,0585

Segment profit

43,058(Note) 1. "Adjustment" for segment profit in the amount of (186) million yen includes (1,403) million yen for elimination ofintersegment transactions and 1,217 million yen for company profit/loss not allotted to reporting segments (net company
profits and net company expenses). Company profits consist mainly of dividend income from reporting segments, andcompany expenses mainly comprise general and administrative expenses not attributed to reporting segments.
2. The segment profit 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, we acquired additional stock of SSP Konsumgüter TRADE & CONSULT GmbH
whereby it became a consolidated subsidiary instead of an equity method affiliate. The increase in goodwill attributable to this event
is 2,794 million yen in this consolidated cumulative first quarter.
The goodwill is an amount calculated provisionally because the acquisition cost is not fully distributed in this consolidated
financial first quarter.

–9–

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

(Business combination and other relationships)(Business combination by acquisition)
A consolidated subsidiary of the Company, NTC Wismettac Europe B.V., acquired an additional 80% stake of common shares in
SSP Konsumgüter TRADE & CONSULT GmbH (hereafter "SSP"), an equity method affiliate, on February 1, 2020. As a result,
SSP became a consolidated subsidiary of NTC Wismettac Europe B.V.
(1) Outline of business combination(i) Name of the acquired company and its business lines
Name of the acquired company: SSP Konsumgüter TRADE & CONSULT GmbHBusiness lines: Import and distribution business of Japanese and Asian food products and ingredients(ii) Main reasons for the business combination
One of the Company Group's growth strategies for the Asian Food Global Business is to "expand our business platform inregions outside of North America." Among those regions, Europe in particular is a market with great growth potential over the
medium to long term, not to mention in the near term, since the number of Japanese restaurants is growing, and in addition,
Asian foods and ingredients, mainly Japanese foods, are being used in various distribution routes there. SSP is an import andwholesale company of Asian foods and ingredients with a focus on Japanese food. It has a long history of business activities
in Europe, mainly in Germany, for about 30 years since its establishment in 1990, and it maintains strong customer relationships
with many local companies and restaurants.
SSP and the Company Group have had close business ties for many years, with the Company Group acquiring a 20% stakein SSP in 2017. After that, through a collaboration for sales and product supply in the area, SSP's value in our Europe Strategy
was confirmed, and an agreement was reached with SSP's management on the acquisition. Consolidating SSP into the Groupwill also enable us to further increase our market share in Germany, and we expect SSP's collaboration with our sites in Europe
and our business development into Eastern Europe and Russia.
In light of these factors, we have determined that the acquisition of additional shares of SSP will greatly contribute toincreasing the Company Group's corporate value.
(iii) Date of business combination
February 1, 2020(iv) Legal form of the business combination
Through acquisition of shares for cash consideration(v) Name of the controlling entity after the business combination
The name remains unchanged(vi) Percentage share of voting rights acquired
Percentage share of voting rights owned before the business combination: 20%
Percentage share of voting rights additionally acquired at the date of business combination: 80%
Percentage share of voting rights after the acquisition: 100%(vii) Main reason for deciding to acquire the company
As the Company Group acquired shares of SSP for cash.
(2) Period associated with the business results of the acquired company included in the quarterly consolidated statement of income
relating to the quarterly consolidated cumulative period
From January 1, 2020 to March 31, 2020
(3) Acquisition cost of the acquired company and breakdownMarket value of equity held before business combination as of the business combination date

584 million yen

Cash expended for additional acquisition

2,339 million yen

Acquisition cost

2,924 million yen– 10 –

Nishimoto Co., Ltd. (9260) - Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2020

(4) Difference between the acquisition cost for the acquired company and the total sum of acquisition costs of each transaction for
acquisition
Marginal gain for gradual acquisition
325 million yen(5) Goodwill, reason for recognizing goodwill, amortization method and amortization period(i) Goodwill accrued
2,913 million yen
The above is a provisional amount.
(ii) Cause of occurrence
The amount reflects the future excess earning power expected from the future business development and the synergy of theCompany Group and the acquired company(iii) Depreciation method and period
Straight-line method for 15 years– 11 –