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

Nishimoto Co., Ltd.
August 12, 2022
2022 Nishimoto Wismettac Group All rights reserved.

Contents•

Summary•

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

•

P. 2

P. 3

Revision of Annual Profit Earnings Forecasts
for the Fiscal Year Ending December 2022

P. 10

•

Policy of Returning Profits to Shareholders

P. 14

•

Reference Material: Medium-Term Business Plan

P. 16

•

Corporate Profile

P. 25

2022 Nishimoto Wismettac Group All rights reserved.

1

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

p. 3

◆

The Asian Food Global Business, our mainstay, posted significant year-on-year increases in both sales and income. Demand recovered with the
deregulation of COVID-19-related regulations, mainly in the North American region. Amid the continuing tight supply-demand situation, theCompany maintained strong performance through appropriate price adjustments and other measures.

◆

The impact of foreign currency translation boosted sales and profits due to the ongoing yen’s depreciation.
Same period last year
Net sales:
99.9 billion yen,

Operating income:Current period
Net sales: 130.7 billion yen,

Operating income: 6.0 billion yen, Ordinary income:3.2 billion yen,

Ordinary income:3.3 billion yen,

Net profit:

2.5 billion yen*

6.4 billion yen, Net profit: 4.5 billion yen*(*) Net income attributable to owners of parent

Revision of the Annual Profit Earnings Forecasts for the Fiscal Year Ending
December 2022
◆

p. 10

Revised the annual profit earnings forecasts considering the 2Q results and the positive effect of the yen’s depreciation on income.
Before revision
Net sales: 254.0 billion yen,

Operating income:9.0 billion yen,

Ordinary income:9.0 billion yen,

Net profit:

6.0 billion yen*

After revision
Net sales: 265.0 billion yen, Operating income: 10.5 billion yen, Ordinary income: 10.5 billion yen, Net profit: 7.0 billion yen*(*) Net income attributable to owners of parent[Average exchange rate for the full-year forecasts (USD)] (Before revision) $1=120 yen (After revision) $1=127 yen◆

Assumes a gradual decline in profit margins toward the second half of the fiscal year, considering increasing purchase costs and expenses and theimpact of consumer trends, such as more thrifty spending, amid growing uncertainty about the economic outlook, including prolonged inflation.

Revision of Interim and Year-End Dividend Forecasts◆

Increased interim dividend to 70 yen per share. Revised the year-end dividend forecast to 75 yen following the revision of the annual profit earnings
forecasts.
FYE 12/2021

Interim dividend:

FYE 12/2022

Interim dividend: 70 yen,

[Forecasts announced in May]
◆

p. 14

35 yen,[65 yen]Year-end dividend:

70 yen,Year-end dividend: 75 yen (forecast),[60 yen]Total: 105 yen
Total: 145 yen (forecast)[125 yen]

As previously planned, the dividend payout ratio is an important indicator, and the Company aims for a consolidated dividend payout ratio ofaround 30% for the full fiscal year.

2022 Nishimoto Wismettac Group All rights reserved.

2

Summary of Financial Results for the Second Quarterof the Fiscal Year Ending December 2022

2022 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the Second Quarterof the Fiscal Year Ending December 2022
◆ The Asian Food Global Business achieved significant growth in net sales and operating income,resulting in a drastic year-on-year increase in both sales and profits.
◆ Maintained a stable product supply system by increasing inventory levels in an environment of prolonged logistics disruptions. Secured
profits through appropriate price adjustments and other measures, despite higher overall costs due to ongoing inflation, without
missing profit-making opportunities.

◆ Besides the sales situation reflecting the recovery trend in demand, the impact of the yen’s depreciation on foreign currency translation
boosted net sales and profits, resulting in a significant increase in sales (up 30.9% YoY) and net income (up 74.1% YoY).
(Unit: billions of yen)

FY ended December 2021

FY ending December 2022

Second quarter results

Second quarter results(Apr-Jun)
Net sales

99.9

55.3

130.7

71.7

Gross profit

18.7

10.1

26.6

14.1

4.6

2.8

7.4

3.8

Operating income or loss(△)

3.2

2.1

6.0

3.1

Ordinary income or loss(△)

3.3

2.1

6.4

3.2

2.5

1.6

4.5

2.3

Operating income
Operatingresults(Apr-Jun)(Excluding strategic expenses)

Net income or loss(△) attributableto owners of parent

Changes year-on-year(Cumulative comparison)+30.8+30.9%+7.9+42.3%+2.7+58.9%+2.7+84.7%+3.1+93.2%+1.9+74.1%

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

107.69 yen

122.89 yen+15.20 yen

Quarterly net income or loss(△) per share180.26 yen

313.84 yen+74.1%

2022 Nishimoto Wismettac Group All rights reserved.

4

Operating Results by Segment for the Second Quarterof the Fiscal Year Ending December 2022
◆ The Asian Food Global Business recorded significant year-on-year increases in both sales and profits,
mainly in Europe and the U.S.
◆ The Agricultural & Seafood Products Trading Business and other domestic businesses recorded a
year-on-year increase in sales and a year-on-year decrease in profits.
Asian Food Global Business (hereinafter called “AFB”)◆ While logistics delays became the norm due to deteriorating container ship standby at sea and general personnel shortages, the entire Company
Group maintained a stable supply of products and service levels by securing sufficient inventories and replenishing necessary personnel. Profit
margins improved, especially in North America, and the impact of the yen’s depreciation on foreign currency translation boosted net sales andincome.
➢ Sales in the North America region increased by 37.6% year-on-year and 33.3% compared to the same period in FY2019, before the spread of
COVID-19.
➢ Sales in regions other than North America increased by 36.8% year-on-year.
Agricultural & Seafood Products Trading Business◆ Purchase costs of imported fruits, our main product, rose due to inflation in the country of origin, soaring ocean freight, increased logisticsrelated costs, and a rapidly depreciating yen. The Company struggled to secure sales in the domestic market affected by a decline in pricecompetitiveness against competing products such as domestically produced products. Sales in the segment as a whole increased by 13.1% yearon-year, mainly due to the consolidation of Ban Choon Marketing Pte. Ltd., Singapore’s leading fruit and vegetable wholesaler.
◆ Despite efforts to pass on higher costs to customers, income decreased year-on-year due to the impact of the handling of quality deterioration
caused by the delayed arrival of container ships, etc.
(Unit: billions of yen)

Business segments

FY ended December 2021

FY ending December 2022

Second quarter results

Second quarter results(Apr-Jun)

AFB
Agricultural &Seafood Products
Trading Business
Other
Adjustment

39.7
2.1
15.0

100.4
6.5
28.6

54.0
3.5
17.1

+27.3

+37.4%+3.1+94.8%Net sales

73.0
3.3
25.3

+3.3

+13.1%

Operating income or loss(△)

0.1

0.2

▲ 0.1

▲ 0.1

▲0.3

-

1.5
▲ 0.0
▲0.2
99.9
3.2

0.5
▲ 0.0
▲ 0.1
55.3
2.1

1.6
▲ 0.1
▲ 0.2
130.7
6.0

0.5
▲ 0.1
▲ 0.1
71.7
3.1

+0.1

+11.5%

▲0.1

-

-

-

0.0

-

+30.8

+30.9%+2.7+84.7%Net sales
Operating income or loss(△)

Net sales
Operating income or loss(△)

Net sales
Operating loss(△)
Net sales

Total(Apr-Jun)

Changes year-on-year(Cumulative comparison)

Operating income

2022 Nishimoto Wismettac Group All rights reserved.

5

Consolidated Balance Sheet (Summary)◆ Assets, liabilities, and net assets increased from the end of the previous fiscal year due to anincrease in both lease assets and lease obligations as a result of the application of the new leasestandard at a consolidated subsidiary in the U.S., along with the impact of the yen’s depreciation,etc.
◆ Inventories increased by 17.8 billion yen from the end of the previous fiscal year due to an increase
in inventories for the purpose of stable supply under the unstable logistics situation, as well as
higher purchase costs and the yen’s depreciation.
(Unit: billions of yen)

End of 12/2021

End of 06/2022

Amount/Rate ofincrease(decrease)

Main reasonsfor changes

and deposits ▲7.3, Trade+18.1 Cashreceivables +6.5, Inventories +17.8

Current assets

124.7

142.8

Non-current assets

17.0

31.0

+14.0 Lease assets (net) +11.1

141.7

173.9

+32.2

Current liabilities

36.6

42.2

Non-current liabilities

45.2

58.6

+13.3 Lease obligations +9.4

81.9
59.8

100.8
73.1

+18.9
+13.2

141.7

173.9

+32.2

115.02 yen

136.68 yen+21.66 yen

41.9%
339.9%

41.7%
338.3%▲0.2 pt▲1.7 pt

Total assets

Total liabilities
Total net assets
Total liabilities and net
assetsYen/Dollar exchange rate (Year-end rate)

Shareholders’ equity ratio
Current ratio
2022 Nishimoto Wismettac Group All rights reserved.

payables +3.1, Lease+5.5 Trade
obligations +2.0

6

Consolidated Statements of Cash Flows (Summary)(Unit: billions of yen)

Q2 FYE 12/2021
Q2 FYE 12/2022
Year-to-date Actual Year-to-date ActualCash flows from operating
activities

0.6

▲8.9

ChangesYear-on year

Main reasons for changes(Change from previous
period)Net income before income taxes and others+2.9
Change in inventories (▲ denotes an▲9.5 increase) ▲8.3

Change in trade payables (▲ denotes adecrease) ▲1.3

Cash flows from investing
activities

▲0.1

▲2.6

▲2.5 increase) ▲1.6

Cash flows from financing
activities

0.7

▲0.3

▲1.1 Dividends paid ▲0.7

Exchange rate change

1.7

4.5

Cash and cash equivalents

Q2 FYE 12/2021
Q2 FYE 12/2022
Year-to-date Actual Year-to-date ActualCash and cash equivalents at
beginning of period
Net increase (decrease) incash and cash equivalents
Cash and cash equivalents at
end of year

2022 Nishimoto Wismettac Group All rights reserved.

Net change in time deposits (▲ denotes an+2.7
ChangesYear-on-year

50.9

65.6

+14.7

3.0

▲7.3

▲10.4

53.9

58.2

+4.2

Remarks

7

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

265.0● 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 FYE 12/2022 (Forecasts after revision)

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

2022 Nishimoto Wismettac Group All rights reserved.

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

BCM (Singapore
2022/1) joined the
WMC Group as aconsolidated
subsidiary8

Breakdown of Strategic Investment◆ Continues to invest in initiatives to strengthen the foundations of existing businesses and evolve

into new business models.

Amount(including expenses/billions of yen)

Measures
1
2

2022

2022

Results

Plan

Q2 Results

0.5

0.8

0.4

◆ Diversification of the businessportfolio◆ Strengthening management andoperational capabilities in eachregion◆ Building business strategies forstrengthening mainstream sales
channel, etc., and building businessstrategies for deepening transactions

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

0.6

◆ Enhancement of the productdevelopment divisions

0.1

0.2

0.1

◆ SCM and IT infrastructure
investments

0.0

0.5

0.1

◆ Organizational revitalization/
streamlining (NA, etc.) andreform of compensation
system

0.5

0.1

0.0

◆ Construction of a mechanism foroverseas export of Japanese
agricultural products

0.2

0.3

0.2

◆ Capturing growth in overseas markets◆ Development of new services tothe restaurant industry (NewNormal eating habits)

0.2

0.2

0.1

◆ Capturing food service businesses
responding to the New Normal
lifestyle

2.7

3.6

1.5

3
Strengthening
Profitability of
Existing Business

4

Aims

2021

Development of
New Businesses
Derived from
Existing
Businesses

2022 Nishimoto Wismettac Group All rights reserved.

Total◆ Further expansion of the private
brand product lineup◆ Development of health-conscious
products◆ Improve accuracy of SCM operations◆ Build a more customer-orientedorganization◆ Introduction of compensation system
based on company and staff
performance◆ Strengthen in-house collaboration
across divisions and departments

9

Revision of Annual Profit Earnings Forecasts
for the Fiscal Year Ending December 2022

2022 Nishimoto Wismettac Group All rights reserved.

Revision of Annual Profit Earnings Forecasts for the Fiscal YearEnding December 2022
◆ Revised annual profit earnings forecasts, considering the first-half results and the positive effect ofincreased income due to the ongoing depreciation of the yen.
➢ In the first half of the year, increased purchase costs and expenses were within expectations, andappropriate price adjustments and other measures helped maintain strong profit levels, especially inthe mainstay North American region.
➢ In the second half of the year, purchase costs and expenses are expected to continue to increase, anda price adjustment phase is anticipated as the supply-demand balance moves toward normalization.
Before revision(Announced in May)
Full Year

After revision
Full Year

Amount ofchangeInterim (Actual)

Net sales

254.0 billion yen

265.0 billion yen(+11.0)130.7

Operating income

9.0 billion yen

10.5 billion yen(+1.5)

6.0

Ordinary income

9.0 billion yen

10.5 billion yen(+1.5)

6.4

Net income attributable toowners of parent

6.0 billion yen

7.0 billion yen(+1.0)

4.5(Average USD exchange rate during the year)(120.00)(127.00)

2022 Nishimoto Wismettac Group All rights reserved.

(122.89)11

Factors Affecting Changes in Annual Profit Earnings Forecasts (Operating
Income)◆ For the second half of the year, the effects of the ongoing yen’s depreciation on profit growth areincluded in the forecast as a main factor.
◆ Assumes a gradual decline in profit margins toward the second half of the year, considering
increasing purchase costs and expenses and the impact of consumer trends, such as more thrifty
spending, amid growing uncertainty about the economic outlook, including prolonged inflation.

Unit: Billion yen

0.5
9.0
▲0.6

0.8

[Agricultural &Seafood Products
Trading Business]
Market deterioration

Change in assumed
exchange rate
(110 yen →120 yen)

10.5

1.0

3.8
5.0

Earnings forecast(At the beginningof the period)[AFB Business]
Improvement in profit
margin(Mainly in North
America)

2022 Nishimoto Wismettac Group All rights reserved.

Earnings Forecast(Announced in May)

Added difference
from forecast(Interim)

Change inassumedexchange rate
(120 yen →127 yen)

Earnings forecast(Current forecast)12

Annual Profit Earnings Forecasts
for the Fiscal Year Ending December 2022 (by Business Segment)
Planning
assumption

In the revised annual profit earnings forecast, the average yen/dollar exchange rate for the period isassumed to be $1 = 127 yen.

Unit: billions of yen

Entirecompany

Existing

AFB

Agricultural& Seafood
Products

Domestic
BtoC

New

FY2020ResultFY2021ResultFY2022
Forecast

FY2022
Revised

Sales

168.4

213.2

254.0

265.0

Profit

1.9

7.3

9.0

10.5

Sales

165.7

207.3

240.0

251.0

Profit

3.9

10.5

11.6

13.0

Sales

116.3

159.8

191.0

201.3

Profit

3.0

10.5

11.6

13.0

Sales

45.8

43.9

45.0

46.0

Profit

0.8

▲0.1

0.0

0.0

Sales

3.6

3.7

4.0

3.7

Profit

0.1

0.1

0.0

0.0

Sales

2.7

6.0

14.0

14.0

Profit

▲2.0

▲3.2

▲2.6

▲2.5

(109.80)(120.00)(127.00)(Average USD exchange
rate during the year)(106.82)2022 Nishimoto Wismettac Group All rights reserved.

Comment
Sales grew in the existing AFB business.
Continued to strengthen the system and invest
for mid- to long-term growth.
Reflects upward swing in the first half results of
AFB business due to prolonged supply chain
disruptions and the consequent ongoing supplydemand crunch.
Although the first half of the year remained
strong, a gradual decline in profit margin is
expected in the second half in light of supplydemand adjustments due to growing thriftinessand higher procurement and logistics costs.
No major change in forecast. Sales volume andprofit margins are sluggish due to logistics
disruptions and the yen’s depreciation. Continue
to strengthen domestic and overseas sales
system.
No major change in forecast. Severe businessconditions will continue due to squeezed profit
caused by the yen’s depreciation and otherfactors.
Promote expansion of product lineup andintroduction of online order system, etc.
No major change in forecast. Continue to invest
toward the evolution of new business models
and focus on expanding sales to mainstream
and other sales channels.

13

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
and strengthening 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 year-end dividends are determined in consideration of the above basic policy, thebusiness environment surrounding the Group, and future business outlook.
◆ The interim dividend was set at 70 yen per share, and the year-end dividend forecast was revised from 60 yen to 75
yen per share following the revision of the annual profit earnings forecast. The annual dividend will be 145 yen per
share, resulting in a payout ratio of approximately 30% for the full year.
Dividend per share(yen)

Year-end
dividend
Year-end
dividend
Year-end
dividend

75

60

70

Interimdividend Not
paid

FY ended
December 2020
(Results)

2022 Nishimoto Wismettac Group All rights reserved.

Interimdividend

Interimdividend

Interimdividend

65

70

FY ending
December 2022
(Forecast before
revision)

FY ending
December 2022
(Forecast afterrevision)

35

FY ended
December 2021
(Results)

15

Reference Material: Mid-Term Business Plan
* Abstracted from the supplementary explanation material of the financial results for the first quarter of the fiscal
year ending December 2022 (disclosed on May 13).

2022 Nishimoto Wismettac Group All rights reserved.

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

17

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.

18

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.

19

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.

20

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

21

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.

22

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
23

Med-term Financial Plan (2022 – 2024)

Announced in May

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

24

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 offood ingredients to food manufacturers and the restaurant sector

Subsidiaries and affiliates

23 subsidiaries, 1 affiliate [As of June 30, 2022]
44* worldwide (including 24 in North America)

Business sites

Locations in Japan, the U.S., Canada, Singapore, Australia, Netherlands, U.K., Germany,
France, China, Hong Kong, Thailand, Vietnam and South Korea

Consolidated net sales

213.2 billion yen (FY ended December 2021)

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

Shareholders’ equity ratio* Figures after reviewing the definition of
the number of business sites* Overseas sales ratio 74.2%

41.9% (FY ended December 2021)

2022 Nishimoto Wismettac Group All rights reserved.

26

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

Wismettac Asian Foods,
Inc. (Canada)
Nishimoto Co., Ltd.

WF Seoul Representative Office

NTC Wismettac Europe B.V.

Sco-Fro Group Limited

Wismettac Foods, Inc.
Privateport Co., Ltd.

Las Vegas Office
Seattle Office
Sacramento Office

Wismettac Foods Shanghai Co., Ltd.

San Francisco Office

IPM Co., Ltd.

Wismettac Asian Foods,
Inc.

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

WF 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.

27

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.