Making people’s lives around the world richer through foodNishimoto Co., Ltd.
Fiscal Year Ended December 2018
Supplementary Material to Financial Results

February 14, 20192019 Nishimoto Wismettac Group All rights reserved.

Contents• Corporate Profile

P. 2• Summary of Financial Results
for the Fiscal Year Ended December 2018

P. 9

• Forecast of Operating Results
for the Fiscal Year Ending December 2019 P. 16• Medium-term Business Plan

P. 22

• Policy of Returning Profits to Shareholders P. 27

2019 Nishimoto Wismettac Group All rights reserved.

1

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” from theCompany name2019 Nishimoto Wismettac Group All rights reserved.

< Wisdom >(Western knowledge)< Metta >(Eastern knowledge)(Metta means kindness or empathy in Pali, anancient Indian language)< Creativity > (Ability to create value)

Nishimoto Wismettac is a …

Global food distribution company
group contributing to thedevelopment of “Food” worldwide
The Nishimoto Wismettac Group’s dream is to make a difference
to the lives of people around the world through food.
For more than a century since the inception of our business, ourgoal has been to increase satisfaction for even more customers,
making our dream come true through closer cooperation withGroup companies worldwide.
Tasty food brings happiness to people worldwide – the Nishimoto
Wismettac Group is moving forward with this in mind.

2019 Nishimoto Wismettac Group All rights reserved.

3

Nishimoto Wismettac: Corporate Profile
Founded in 1912, Nishimoto Wismettac has grown into a global company supplying food ingredientsand food products to markets worldwide
Company nameNishimoto Co., Ltd.

Head Office

Onward Park Building, 3-10-5 Nihonbashi, Chuo-ku, Tokyo

EstablishedMay 1912

Representative directors

Yoshiro Susaki, Chairman & CEO, Takayuki Kanai, President & COO

Number of Employees

1,676(including 1,404 in the Asian Food Global Business)
 Development and sale of Asian food worldwide

Business

Subsidiaries and Affiliates

Business Sites

 Importation and sale of fruit, vegetables and related processed products, and supply offood ingredients to food manufacturers and the restaurant sector
11 subsidiaries, five affiliates
48 worldwide (including 23 in North America)
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

182.2 billion yen (FY ended December 2018)

Ordinary income

6.5 billion yen (FY ended December 2018)

Shareholders’ equity ratio*Overseas sales ratio 67.3%

61.9% (FY ended December 2018)(Above information are as of December 31st, 2018.)
2019 Nishimoto Wismettac Group All rights reserved.

4

Nishimoto Wismettac: Domestic and Overseas Business Sites
 Developing businesses worldwide with 48 global locations
 23 locations in the North American region (the U.S. and Canada)

1 Nishimoto Co., Ltd.
14 COMPTOIRS DES 3 CAPS SARL
13 SSP Konsumgüter TRADE & CONSULT GmbH

2
3

Nishimoto Trading Co., Ltd.

Calgary Office

Wismettac Foods, Inc.

11 Harro Foods Limited

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

8 NTC Wismettac Europe B.V.
Nishimoto Trading Paris Representative
OfficeSacramento Office

9 Wismettac Foods Shanghai Co., Ltd.
10 Shanghai IPM Co., Ltd.
12 Nippon Foods Co., Ltd.

Nishimoto Trading Ho Chi Minh Representative
OfficeSan Francisco Office4

Wismettac Asian
Foods, Inc.

Hawaii Office
Nishimoto Trading Kobe Office

Nishimoto Trading Bangkok Representative Office

San Diego Office
Arizona Office

6 NTC Wismettac Singapore Pte.Ltd.

Toronto OfficeMontreal Office
Boston Office

New York Office
Washington, DC Office
Ohio OfficeMiami Office

Wismettac Foods Kobe Office
Nishimoto Trading Seoul Representative
OfficeChicago OfficeOrlando OfficeAtlanta Office

Houston Office
Dallas Office

NTC Wismettac Australia Brisbane Office

7 NTC Wismettac Australia Pty Ltd.
NTC Wismettac Australia Perth Office

NTC Wismettac Australia Melbourne Office(Above information are as of December 31st, 2018.)
2019 Nishimoto Wismettac Group All rights reserved.

5

Major Business Segment: Asian Food Global Business Distribution of Asian food ingredients and food products with a focus on Japanese food around the world
centering on North America. Successful implementation of its own integrated operations from productdevelopment and planning to sales and distribution.

←Compliance with related laws and regulations→
Product development
and planning

Purchasing andCustoms
Clearance

Procurement

Wide rangeof sourced
products anddiversesupplier baseDeveloping new
private brandproducts
and expanding
the private brandrange*「Shirakiku」
accounts forabout 40%in terms of sales(North Americanbusiness
performance, 2018)

Storage

Sales

Sortingand delivery

Logistics capabilities and systems(about 8,000 items)

 Select the best producing region throughout the world Working with producers to develop products tailored tocustomer needs
 Implementing production and quality control systems thatcomply with local regulations

Marketing network
and North
Americanbusiness locations(23 locationsin North America)(37 locations
globally)

Developing products in line with customer needs

2019 Nishimoto Wismettac Group All rights reserved.

6

(Reference) Product Portfolio of the Asian Food Global Business
We import and procure Asian food products and ingredients, with a focus on Japanese food, including fromthe U.S., Japan, China and South East Asia, and distribute approximately 8,000 items on a global basis,principally in North America.

Main Products

Chopsticks,
containers, etc.

Alcohol

Rice

Confectionery
Agricultural
products

Seafood products

Sauces andseasoning

Processed
food products

2019 Nishimoto Wismettac Group All rights reserved.

7

Major business segment: Agricultural & Seafood Products Trading Business Import and sale with a focus on fresh fruits and vegetables in the Japanese market.
 As a sole import agent of Sunkist Growers Inc. in Japan, maintain high market share of imported citrus. In particular, themarket share* of lemon is about 50% and orange is about 30%.

Main Products
Seafood
Domestic
market share:roughly 50%

Seafood

Frozen Fruit andVegetables,
Canned Goods etc.

Frozenstrawberries

Other

Citrus fruit

Other
Other

LemonsPineapples
BananasOrangesBananasDomestic
market share:roughly 30%

Other
Grapefruit

Asparagus
Peppers

Other

Other

Vegetables

Avocados

GrapesCherries

Tropical fruit

Kiwi
fruit

* Calculated based on Trade Statistics of Japan (Ministry of Finance)(2017)2019 Nishimoto Wismettac Group All rights reserved.

8

Summary of Financial Results
for the Fiscal Year Ended December 20182019 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the Fiscal Year Ended December 2018
Despite being slightly below plan, net sales grew by 5.9% year-on-year. The major breakdown was as follows: Asian Food Global Business fell 0.3%
behind plan but still grew 5.6% year-on-year, and Agricultural & Seafood Products Trading Business fell 3.6% behind plan but still grew 6.5% yearon-year.

While operating income within the Asian Food Global Business declined in the North American region, its business in other regions outside North
America exceeded the results of the same period in the previous year of the Agricultural & Seafood Products Trading Business, recording a 6.2%
overall increase year-on-year. Despite Agricultural & Seafood Products Trading Business exceeding the plan, Asian Food Global Businessunderperformed, resulting in an overall fall of 0.8% against the plan.

Net income attributable to shareholders of the parent company increased 51.1% 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
Full-year
results

Full-year results
Net sales

Gross profit

FY ended December 2018

172.0

182.2

(100.0%)(100.0%)

29.8

31.8

(17.3%)(17.5%)

OperatingOperating income
results

6.3

6.7(3.7%)(3.7%)

Ordinary income

5.9

6.5

(3.4%)(3.6%)

Year-on-year
rate

+5.9%
+6.7%
+6.2%
+11.3%

Full-year
forecast

184.8(100.0%)31.9(17.3%)

6.7(3.7%)

6.6(3.6%)

-1.4%
-0.3%
-0.8%
-1.4%

3.0

4.6

(1.8%)(2.5%)

Percentage of North America(Net sales)

58.9%

58.5%

-0.4pt57.3%+1.2ptPercentage of North America(Operating income)

78.6%

66.4%

-12.3pt

77.2%-10.9pt

20.3%

20.5%

+0.2pt21.8%-1.3ptYen/Dollar exchange rate
(Average rate during the period)

112.19 yen

110.43 yen-1.76 yen

110.00 yen+0.43 yen

Net income per share *2

236.37 yen

322.89 yen+36.6%

324.98 yen-0.6%

Net income attributable toowners of parent

Group
KPI

ROWC

*1

+51.1%

4.6

Compared to theplan(2.5%)-0.6%(*1) Operating income for FY2018 / ([Working capital at the end of FY2017+ Working capital at the end of FY2018] / 2)(*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 has been
conducted at the beginning of FY2017.
2019 Nishimoto Wismettac Group All rights reserved.

10

Operating Results by Segment for the Fiscal Year Ended December 2018
The Asian Food Global BusinessNet sales increased 5.6% year-on-year due to the development of new accounts and the expansion of sales to existing customers [resulting in a
5.2% increase year-on-year in North America (a 6.8% increase on a local currency basis), an 8.4% increase year-on-year in other regions on aconsolidated yen basis, and a 10.2% increase on a weighted average on a local currency basis].
Operating income decreased 5.1% year-on-year overall, reflecting the lower performance in North America compared to the same period in theprevious year. In regions outside North America, operating income increased on the same period in the previous year, and the business base has
expanded. Against the plan, both the North America and other regions fell short of the plan.

The Agricultural & Seafood Products Trading Business:Net sales increased 6.5% year-on-year, mainly driven by favorable exports and third country sales. Net income also increased year-on-year andagainst plan due to the recovery this year in sales of citrus fruits and tropical fruits for the domestic market, compared to sluggish sales in theprevious year.

Sales to external customers

Asia Food Global
Business
Agricultural & Seafood
Products Trading
Business
Other business
Total(Unit: billions of yen)

FY ended
December 2017
Full-year results

Full-year results

Year-on-year rate

118.44125.11+5.6%

125.43

-0.3%

49.64

52.88

+6.5%

54.84

-3.6%

3.99
172.074.22
182.22+5.8%

4.53
184.81-6.9%

FY ended December 2018

+5.9%

Full-year forecast Compared to the plan

-1.4%

Operating income
FY ended
December 2017
Full-year results

Full-year results

Year-on-year rate

Full-year forecast

Compared to the plan

5.69

5.40

-5.1%

6.24

-13.4%

0.43

1.04+141.0%0.77+34.7%

0.17
6.32

0.26
6.71

+50.6%

0.19
6.77+34.1%

Asia Food Global
Business
Agricultural & Seafood
Products Trading
Business
Other businessTotal
2019 Nishimoto Wismettac Group All rights reserved.

FY ended December 2018

+6.2%

-0.8%
11

Comparison of Operating Income for Fiscal Year Ended December 2018

AgainstPrevious Period[Exchange rate (US$)]FY ended December 2017: 112.19 yen
FY ended December 2018: 110.43 yen

NorthAmerica-0.44

Other thanNorth
America

Agricultural &Seafood
Products
Trading
Business

Other

Adjustment

+0.60

+0.08

-0.01

FX (North
America)-0.07(Unit: billions of yen)

+0.22

6.32

Situation in North America• As for the soaring costs for foodstuffs including rice since the 1st quarter of
FY2018, the situation has recovered since beginning with the 4th quarter by the
progress of efforts such as revising prices.
• Structural reforms implemented to address rising expenses (such as for laborcosts and gasoline) in the logistics department and elsewhere, which have beenongoing since the previous year, will be continued and enhanced.

FY ended December
2017 results

2019 Nishimoto Wismettac Group All rights reserved.

6.71

FY ended December
2018 results

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

End ofDecember 2017

End ofDecember 2018

Amount/rate ofincrease (decrease)

Current assets

75.3

75.1

-0.1

Non-current assets

9.0

8.4

-0.5

84.3

83.5

-0.7

Current liabilities

19.6

20.1

+0.5

Non-current
liabilities

14.9

11.6

-3.2

Total liabilities

34.5

31.8

-2.7

Total net assets

49.7

51.7

+2.0

Total liabilities and net
assets

84.3

83.5

-0.7

Shareholders’ equity
ratio

59.0%

61.9%

+2.9ptCurrent ratio

383.3%

372.3%-11.0pt

Total assets

2019 Nishimoto Wismettac Group All rights reserved.

Main reasonsfor changes• Write-off of fixed assets at
Australian subsidiary (-0.14)• Long-term loans (-3.2)

13

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

FY ended
December 2017

FY ended
December 2018

Changes yearon-year

Cash flows from operating activities

1.3

5.5

+4.1

Cash flows from investing activities

-1.4

-1.2

+0.2

Cash flows from financing activities

8.5

-6.8

-15.4

Translation adjustments

-0.2

-0.2

0

FY ended
December 2017

FY ended
December 2018

Changes yearon-year

Beginning balance

22.9

31.2

+8.3

Changes during the period

8.3

-2.7

-11.1

Ending balance

31.2

28.5

-2.7

Cash and cash equivalents

2019 Nishimoto Wismettac Group All rights reserved.

Main reasonsfor changes• Current net income (+1.0),
decrease in operating funds(+0.5), decrease in corporatetax (+1.2), etc.

• Long-term loans (-3.2), shortterm loans (-2.3), dividend payouts (-1.5).
• Funding gained through IPO in
preceding year (+8.3)

Main reasonsfor changes• Operating CF (+4.1),
Financing CF (-15.4)

14

(Reference) Net Sales by Region(Unit: billions of yen)

FY ended
December 2016
Actualresults

FY ended
December 2017

Component
ratio

Actualresults

FY ended
December 2018

Component
ratio

Actualresults

Component
ratio

North America

93.3

59.0%

101.4

58.9%

106.6

58.5%

Europe

3.1

2.0%

5.2

3.1%

6.2

3.4%

Asia/Australia

5.8

3.7%

9.0

5.3%

9.7

5.3%

Japan

55.9

35.4%

56.3

32.7%

59.6

32.7%

Total

158.3

100%

172.0

100%

182.2

100%

2019 Nishimoto Wismettac Group All rights reserved.

15

Forecast of Operating Results
for the Fiscal Year Ending December 20192019 Nishimoto Wismettac Group All rights reserved.

Forecast of Financial Results for the Fiscal Year Ending December 2019Net sales will increase 5.9% against the previous year. Asian Food Global Business will grow by 5.9%, and Agricultural & Seafood
Products Trading Business will grow by 5.6%. The outlook for continued stable growth in net sales and gross profit remains
unchanged.

Operating profit will decline by 10.7% against the previous year. We are anticipating an increase in costs for the group overall fromfuture proofing against changes in the external environment.



We are anticipating decreases in net income attributable to parent company shareholders by 6.4%, amounting to 4.3-billion yen.
(Unit: billions of yen, Percentage to net sales is stated in parentheses)

FY ended December
2018
Full-year results
Net sales
Gross profit

Operatingresults

Operating income
Ordinary income

FY ending December 2019
First-halfforecast

Changes yearon-year

182.2

96.0

(100.0%)(100.0%)

31.8

16.4

(17.5%)(17.1%)

6.7

2.9(3.7%)(3.1%)

6.5

2.9(3.6%)(3.1%)

+6.4%
+6.9%
-3.6%
-3.1%

Full-year
forecast

193.0(100.0%)33.6(17.4%)

6.0(3.1%)

6.0(3.1%)+5.9%+5.7%-10.7%
-8.1%

4.6

2.1

(2.5%)(2.2%)

Percentage of North America(Net sales)

58.5%

-

-

57.9%

-0.6 pt

Percentage of North America(Operating income)

66.4%

-

-

76.8%

+10.5 pt

20.5%

-

-

17.4%

-3.1 pt

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

110.43 yen

110.00 yen+1.32 yen

110.00 yen-0.43 yen

Net income per share

322.89 yen

148.27 yen-2.5%

302.20 yen-6.4%

Net income attributable toowners of parent

Group
KPI

ROWC

*

-2.5%

4.3

Changes yearon-year(2.2%)-6.4%(*) Operating income for FY2018 / ([Working capital at the end of FY2017+ Working capital at the end of FY2018] / 2)2019 Nishimoto Wismettac Group All rights reserved.

17

Forecast of Operating Results by Segment for the Fiscal Year ending December 2019
Asian Food Global Business The Company will maintain stable growth (acquisition of new customers and expansion of sales from existing customers) in existing
markets, centered around the North American region with a focus on Japanese food, and engage in initiatives to further expand its
business base in regions outside of North America.
 In the North American region, the Company will also strive to develop new sales channels (corporate accounts, etc.) for non-Japanese
foods.
Agricultural & Seafood Products Trading Business

The Company will protect net income by maintaining its business in the domestic wholesale market, while aggressively engaging
in initiatives to expand sales channels to volume sales, home meal replacement and eating out, food manufacturers and overseas
accounts.
Strategic Expenses associated with Group measures
 The Company anticipates an expenditure of 0.95-billion yen for costs associated with measures for the group overall*.

Sales to external customers

Asia Food Global
Business
Agricultural & Seafood
Products Trading
Business
Other business
Total(Unit: billions of yen)

FY ended December
2018
Full-year results

First-half forecast

Changes year-on-year

Full-year forecast

Changes year-on-year

125.11

64.73

+6.9%

132.49

+5.9%

52.88

29.21

+5.0%

55.82

+5.6%

4.22
182.22

2.07
96.02+11.9%+6.4%

4.68
193.00+11.0%+5.9%

FY ending December 2019

Operating income
FY ended December
2018
Full-year results
Asia Food Global
Business
Agricultural & Seafood
Products Trading
Business
Other business
Strategic Expense forGroup Measures, etc.
Total

FY ending December 2019

First-half forecast Changes year-on-year Full-year forecast Changes year-on-year

5.40

2.50

-0.9%

5.61

+3.8%

1.04

0.63

+20.2%

1.07

+3.5%

0.26

0.05

188.8%

0.25

-2.2%

-

-0.25

-

6.71

2.95

-3.6%

2019 Nishimoto Wismettac Group All rights reserved.

（*）

-0.95

-

6.00

-10.7%
18

Supplement to Forecasts of Operating Results for Fiscal Year Ending December 2019
The external
environment ischanging drastically

Increasing personnel and distribution costs, climate change
and the exploding population, volatile foodstuff costs, the tightening of food related
regulations, changing consumer behavior, such as online purchasing, diversification andlocalization of Japanese cuisine, logistics innovation and expanding IoT…

With these in mind, the Company will maintain growth in existing businesses during
the 2019 business year while proceeding to implement measures for the future

Major Expenditure for Future Growth
Investment in North American region (recruitment)• Experts in optimizing and strengthening distribution infrastructure, and human resources for developing newsales channels (corporate accounts, etc.) (Inclusive of funds required to develop new sales channels)
Investments outside the North American region (recruitment)• Human resource for the formation of area management organization in the European, Asian and Chinese
regions.

Investments in product content and platforms (recruitment and IT investment, etc.)• Experts in food products and foodstuffs to enhance product content, experts in food technology.
• Recruitment and investment to develop and strengthen platforms (the distribution and system infrastructure of
the entire group)
Relocation of the Tokyo office• Relocation of the Tokyo office is planned for the second-half of 2019. Consolidating the office space currently
spread out over 4 floors into a single floor should promote active communication, the integration of ourworkers, organization and products, and increasing operational efficiency.
(The current lease of the Nihonbashi office is due to expire by November 2019.)
2019 Nishimoto Wismettac Group All rights reserved.

19

Factors of Changes in Operating Income for Fiscal Year Ending December 2019

Comparison toPrevious Period
North
America
Margin+1.18

Other thanNorth America
Margin+0.31

Agricultural &Seafood
Margin

+0.23

Other
Margin+0.06(1)
Existing
Increases in(2)
Sales &
(3)
Strategic
Administration
Group
Strategic
Expenses for
Costs
Expenses for
Sales &
-0.78
Sales &
Administration
by Segment Administration

-0.78

-0.95

↑
(ExistingExpenses)(Strategic
Expenses)

6.71• Margin, Comparison to Previous Period: 106%• Sales & Administration Costs, Comparison to Previous
Period: 110%
(Existing Sales & Administration Cost (1) alone
accounts for only 103% comparison to previous period)(Unit: billions of yen)

Strategic Expenses
Hiring and expanding strategic talent (to set up North
American distribution infrastructure, develop new sales
channels in North America, develop area management,
reinforce content and platforms), IT investment, officerelocation, etc.

6.00

↓

• Strategic Expenses by Segment (2): expenses included insegment income & expenditure plan
• Group Strategic Expenses (3): expenses outside segment
income & the expenditure plan

FY ended December
2018 results

2019 Nishimoto Wismettac Group All rights reserved.

FY ending December
2019 forecast

20

(Reference) Changes in operating results of the Asian Food Global BusinessNorth America region

All segments
6% increaseyear-on-year

Net Sales (billions of yen)

130.0
120.0
110.0

Other regions

18.4
17.0

All segments
6% increase
Year-on-year

20.6(12% increaseyear-on-year)(8% increaseyear-on-year)

100.0
90.0
80.0
101.4
70.0

106.6
(5% increase
Year-on-year)

111.8(5% increaseyear-on-year)

60.0
50.0
FY ended December 2017
results

2019 Nishimoto Wismettac Group All rights reserved.

FY ended December 2018
results

FY ending December 2019
forecast

21

Medium-term Business Plan
A new medium-term plan for the 3-year period from 2019 until 2021 will be announced as soon as it isready for release. At present, the scope of the business outlook will be limited to the fiscal year
ending December 2019.

2019 Nishimoto Wismettac Group All rights reserved.

Current Understanding of Our Company’s Business (Changes in External Environment)

The external environment surrounding
our business is changing drastically

Increasing
personnel anddistribution
costs

Changing consumer
behavior, such as
online purchasing

Volatile
Foodstuff
Costs

2019 Nishimoto Wismettac Group All rights reserved.

Diversification andlocalization ofJapanese cuisine

Our GroupofCompanies

External
Environment

Tightening food
relatedregulations

Logistics
Innovation
IoT

Climate Change
ExplodingPopulation

23

The company’s long-term vision

Growth as the Group that overcame environmental changes

Great changes in the businessenvironment

Distribution

Customerorientation(Preference)

2019 Nishimoto Wismettac Group All rights reserved.

Changes in customer value

Food
items

The Company’s long-term vision

To become the “Only One”
company in the global food
distribution industry, that develops
the most appropriate business“platform” in each country andregion where the Company
operates business, as well as
expands multiple “content”(similar to a business model) on
the “platform.”

24

Medium-term Plan: Image of Platform and Content Deployment
Image of Platform Deployment
 The company will spin-off 5 areas within the group into separate companies, ensuring thedevelopment of close relationships with local markets and swift management of the business.
 Development of advanced distribution channels and logistics systems through the adoption of
emerging technology, etc.
 Prepare an organization capable of delivering high value-added content on a global scale.

EuropeChina

SE Asia

North
America

Japan<Conceptual Diagram of the Platform>
Purchasing &Procurement

Customs
Clearance

Storage

Sales

Sales

Sorting &DeliveryDistribution
Management

Group’s Common Principle, Know-How, Technology, Information

2019 Nishimoto Wismettac Group All rights reserved.

25

Medium-term Plan: Image of Platform and Content Deployment
Image of Content
Deployment
 By conducting a deep-dive analysis of the market, develop content and a business model thatenables the development of new markets (non-Japanese restaurants, supermarkets, corporate
accounts, etc.)<Content><Content>

Aqua(Seafood)

Agri

Purchasing &Procurement<Content>

Processed
Food(Agricultural
Products)

Customs
Clearance(Processed
Foods)

Storage

Sales

Sales

<Content>

Food
Industry
Technology

Sorting &DeliveryDistribution
Management

Group’s Common Principle, Know-How, Technology, Information<Platform>

2019 Nishimoto Wismettac Group All rights reserved.

Development of Advanced Technology

Existing and New Sales Channels

Food
Lab
(Food
Technology)

Tech
Lab
(Food
Industry
Technology）

26

Policy of Returning Profits toShareholders

2019 Nishimoto Wismettac Group All rights reserved.

Policy of Returning Profits to Shareholders[Policy] The Company’s basic policy for returning profits to shareholders is to continue providing stable dividends while striving tomaintain retained earnings to develop its businesses in the future and to improve its financial strength.
 The Company considers the payout ratio to be an important index and aims at maintaining a consolidated payout ratio of
about 30% every year.
 The Company schedules to make a dividend payment twice a year (interim and year-end).
 The annual dividend for the fiscal year ending December 2019 is forecast to be 95 yen (forecasts of 40 yen interim
dividend and 55 yen year-end dividend).

Dividend per share
(yen)

100

95 yen95 yen75

55

55

Year-end
dividend

Year-end
dividend40

40

Interimdividend

Interimdividend

FY ended December
2018 (Results)

FY ending December
2019 (Forecast)

50

25

Payout ratio
ofAbout 30%

02019 Nishimoto Wismettac Group All rights reserved.

28

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

2019 Nishimoto Wismettac Group All rights reserved.

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 resultsthat 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 isunder no obligation 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.
Management Planning Department
TEL：03-6870-20152019 Nishimoto Wismettac Group All rights reserved.