Supplementary Material to Financial Results
Third Quarter of the Fiscal Year Ending
December 2019

Nishimoto Co., Ltd.
November 13, 20192019 Nishimoto Wismettac Group All rights reserved.

Contents• Summary of Financial Results
for the Third Quarter of the Fiscal YearEnding December 2019P. 2

• Revision to Forecasts of Financial Results
for the Fiscal Year Ending December 2019

P. 6

• Policy of Returning Profits to Shareholders

P. 11• Corporate Profile

P. 13

2019 Nishimoto Wismettac Group All rights reserved.

1

Summary of Financial Results
for the Third Quarter of the Fiscal Year Ending
December 20192019 Nishimoto Wismettac Group All rights reserved.

Summary of Financial Results for the Third Quarter of the Fiscal Year Ending
December 2019
 Net sales increased 1.1% year-on-year. Breaking down the major items, there was a 3.6% increase year-on-year in the Asian Food
Global Business and a 4.1% decrease year-on-year in the Agricultural & Seafood Products Trading Business.

 Operating income for both the Asian Food Global Business and the Agricultural & Seafood Products Trading Business decreased.
As a result, total operating income also decreased 25.2% year-on-year.
 The negative impact of foreign currency rates in converting to the yen for consolidated financial statements (the yen appreciated0.46 yen year-on-year against the US dollar) caused a decrease of 340 million yen and of 10 million yen in net sales and operating
income (of North America) on a year-on-year basis, respectively.
(Unit: billions of yen, Percentage to net sales is stated in parentheses)

FY ended December
2018
Third quarter results

Operating results

Net sales
Gross profit
Operating income
Ordinary income
Net income attributable to ownersof parent
Yen/Dollar exchange rate
(Average rate during the period)
Quarterly net income per share

FY ending December 2019
Third quarter results

135.5

137.0

(100.0%)(100.0%)

23.3

23.7

(17.2%)(17.3%)

4.7

3.5(3.5%)(2.6%)

Changes year-on-year
+1.1%
+1.7%
−25.2%

4.7

3.6(3.5%)(2.7%)

3.3

2.5(2.5%)(1.9%)

109.61 yen

109.15 yen−0.46 yen

235.00 yen

177.58 yen−24.4%−23.1%−24.4%* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated
subsidiaries from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the third quarterof the fiscal year ended December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

3

Operating Results by Segment for the Third Quarter of the Fiscal Year Ending
December 2019
Asian Food Global Business Net sales increased 3.6% year-on-year. [A 3.6% increase year-on-year in the North American region (a 4.0% increase on a local currency basis.) A
3.7% increase year-on-year in regions other than North America on a consolidated yen basis. A 9.4% increase year-on-year on the basis of local
currency weighted averages].
 Operating income decreased 10.7% year-on-year. The North American region (the USA) was affected by higher costs arising from higher additionaltariffs on imports from China and price increases for national brand products. In selling, general and administrative expenses, labor costs andlogistics expenses remained high, and strategic expenses continued to be recorded, which decreased profits. In regions other than North America,
profits fell primarily due to sluggish sales of a UK subsidiary (where a currency depreciation due to exchange rate fluctuations led to a rise inpurchase prices, squeezing profits) and a continued increase in the number of staff in charge of purchasing and procurement in the group.
Agricultural & Seafood Products Trading Business Net sales fell 4.1% year-on-year due to poor sales of fruits and vegetables in general (citrus, tropical commodities and vegetables) and decreases inunit prices in the domestic market. An additional negative cause was sluggish sales of US-made citrus by the subsidiary in China.
 Operating income contracted mainly due to decreased sales from fruits and vegetables in the domestic market and a rise in costs.

Sales to external customers(Unit: billions of yen)
FY ended December 2018
Third quarter results

FY ending December 2019
Third quarter results

Changes year-on-year

Asian Food Global Business

91.94

95.26

+3.6%

Agricultural & Seafood Products Trading Business

40.82

39.12

−4.1%

Other business

2.78

2.65

−4.7%

135.54137.04

+1.1%

Total

Operating income
FY ended December 2018
Third quarter results
Asian Food Global Business
Agricultural & Seafood Products Trading Business
Other business
Adjustment & Strategic Expense for Group Measures
Total

3.77
0.93
0.04
0.01
4.77

FY ending December 2019
Third quarter results
3.37
0.48
0.05
−0.34
3.57

Changes year-on-year−10.7%−47.7%+23.6%—−25.2%* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated
subsidiaries from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the third quarterof the fiscal year ended December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

4

Operating Income for the Third Quarter of the Fiscal Year Ending
December 2019
[Exchange rate (US$)]

Compared to same
period in previous
fiscal year
Existing North
America0.24

Third Quarter of FY 2018 (Actual): 109.61 yen
Third Quarter of FY 2019 (Actual): 109.15 yen

Agricultural &Other thanNorth America Seafood Products
Trading Business

0.14

0.44

Adjustment
Other

0.01

0.10

FX (North
America)0.01

Segment strategic
expenses

0.43

Group
strategic
expenses0.52(Unit: billions of yen)

4.77

Results for third
Quarter of FY ended
December 2018

• In the case of excluding strategic expenses, although Existing North America in the
Asian Food Global Business increased profits, Other than North America in the Asian
Food Global Business and the Agricultural & Seafood Products Trading Businessposted a year-on-year decrease.
• Strategic expenses are mainly comprised of personnel investments (for new businessand the restructuring and digitalization of existing operations.)(For example, spending for strategic expenses for business restructuring factored into
the plan.)This page shows figures after excluding segment strategic expenses, group strategic expenses, and unrealized
profit from each segment for the purpose of clarifying fluctuations in operating income. Hence, the operating
income fluctuation amounts in the table above do not match the segment operating income fluctuation amounts
as shown in the Consolidated Financial Results report.

2019 Nishimoto Wismettac Group All rights reserved.

3.57

Results for third
Quarter of FY
ending December
20195Revision to Forecasts of Financial Results for
the Fiscal Year Ending December 20192019 Nishimoto Wismettac Group All rights reserved.

Forecasts of Financial Results for the Fiscal Year Ending December 2019 The Company revised forecasts of financial results for the fiscal year ending December 2019 in consideration of theearnings in cumulative results up to the third quarter and the outlook for the fourth quarter.
 Net sales were revised down to an increase of 0.4% year-on-year (the initial forecast was a 5.9% increase.) Operating income and ordinary income were revised down to a 32.9% decrease (the initial forecast was a 10.5% decrease)and a 29.7% decrease (the initial forecast was a 7.9% decrease) on a year-on-year basis, respectively.
 As a result, profit attributable to owners of parent was revised down to a 30.2% decrease (the initial forecast was a 6.2%
decrease) on a year-on-year basis.
(Unit: billions of yen, Percentage to net sales is stated in parentheses)

Net sales
Gross profit
OperatingOperating income
results
Ordinary income
Net income attributable toowners of parent
Yen/Dollar exchange rate
(Average rate during the period)
Net income per share

FY ended
December 2018

FY ending December 2019

Full-year results Revised forecast

Changes
year-on-year

182.2

183.0

(100.0%)(100.0%)

31.8

31.8

(17.5%)(17.4%)

6.7

4.5(3.7%)(2.5%)

6.5

4.6(3.6%)(2.5%)+0.4%
0.0%−32.9%−29.7%

Initial forecast

193.0(100.0%)33.6(17.4%)

6.0(3.1%)

6.0(3.1%)+5.9%+5.7%−10.5%
−7.9%

4.6

3.2

(2.5%)(1.8%)

110.43 yen

109.00 yen−1.43 yen

110.00 yen−0.43 yen322.18 yen

224.89 yen−30.2%

302.20 yen−6.2%−30.2%

4.3

Changes
year-on-year(2.2%)−6.2%* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated subsidiaries fromthe simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the first quarter of the fiscal year ended
December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

7

Forecasts of Financial Results for the Fiscal Year Ending December
2019 (by segment)
Asian Food Global Business - North America• Net sales will increase year-on-year. Profits are expected to decrease as costs are forecast to continue rising in and after the fourth quarterdue to high likelihood of higher additional tariffs on imports from China and price hikes of national brand products. Although revision of
selling prices is underway, it is difficult to absorb all cost increases during the current fiscal year. In selling, general and administrative
expenses, labor costs and logistics expenses are expected to remain high, and strategic expenses will continue to be recorded.
Asian Food Global Business - Other than North America• Sluggish sales in the UK are expected to continue in the fourth quarter (a currency depreciation in FX fluctuations pushed up costs ofpurchases, squeezing profits.) In addition, Australia too is struggling for the full year due to rising costs resulting from FX fluctuations.
Agricultural & Seafood Products Trading Business• Fruits and vegetables are expected to continue struggling in the fourth quarter. Full-year net sales and profits are expected to decline yearon-year, as it is difficult to make up for the shortage up to the third quarter.

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

Revised forecast

125.11128.50Changes year-onyear
+2.7%

52.88

50.50

4.22
182.22

FY ending December 2019

Initial forecast

Changes year-on-year

132.49

+5.9%

−4.5%

55.82

+5.6%

4.00

−5.3%

4.68

183.00+0.4%

193.00+11.0%+5.9%

Operating income
FY ending December 2019

FY ended December
2018
Full-year results

Revised forecast

5.40

4.60

Changes year-onyear−14.9%

1.03

0.60

0.25

Asia Food Global Business
Agricultural & Seafood
Products Trading Business
Other business
Strategic Expense forGroup Measures, etc.
Total

Initial forecast

Changes year-on-year

5.61

+3.9%

−41.9%

1.07

+4.3%

0.15

−42.3%

0.25

−1.3%

—

−0.85

—

−0.95

—

6.70

4.50

−32.9%

6.00−10.5%* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined benefit liability of our domestic consolidated
subsidiaries from the simplified method from the projected benefit obligations (PBO) method and applied the new method retroactively. Hence, the figures stated for the first quarterof the fiscal year ended December 2018 are those after the retroactive application.

2019 Nishimoto Wismettac Group All rights reserved.

8

Fluctuating Factors in Revised Operating Income for the Fiscal Year Ending
December 2019 (comparison with initial forecasts)[Exchange rate (US$)]

Comparison withinitial forecasts

Current year (Plan): 110.00 yen
Current year (Assumed): 109.00 yen

Existing North
America−0.86

Other thanNorth America−0.30

Agricultural &Seafood
Products Trading
Business

−0.47

Other

−0.10

6.00

Adjustments

FX (North
America)

+0.27

−0.03

Segment
Group
strategic
strategic
expenses, etc. expenses, etc.

+0.18

−0.17

• Existing North America was revised downward due to a delay from the plan in delivering successful
results from countermeasures against deterioration in the external environment (including trade conflict
between the US and China, price hikes of national brand products and a rise in selling, general andadministrative expenses.)• Net sales in regions other than North America are proceeding almost as planned, but profits are
expected to fall short of the plan due to rising costs.

(Unit: billions of yen)

4.50

• Agricultural & Seafood Products Trading Business was revised downward due to poor sales of fruits andvegetables in general (citrus, tropical commodities and vegetables) and reductions in unit prices. Anothernegative factor is sluggish sales of US-made citrus by the subsidiary in China.
• Segment strategic expenses, etc. indicate an unused portion against the plan, caused by revising
recruitment and action plans related to new businesses in North America.
• Group policy expenses, etc. exceeded the plan after recruitment for pursuing new businesses andformats was treated as group-common human resources.
(Overall strategic expenses will be spent as planned.)

FY ending
December 2019
Forecast(Initial plan)* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined
benefit liability of our domestic consolidated subsidiaries from the simplified method from the projected benefit obligations (PBO)
method and applied the new method retroactively. Hence, the figures stated for the first quarter of the fiscal year ended December
2018 are those after the retroactive application.
* This page shows figures after excluding segment strategic expenses, group strategic expenses, and unrealized profit from eachsegment for the purpose of clarifying fluctuations in operating income.

2019 Nishimoto Wismettac Group All rights reserved.

FY ending
December 2019
Forecast(After revision)
9Fluctuating Factors in Revised Operating Income for the Fiscal Year Ending
December 2019 (comparison with the previous fiscal year)[Exchange rate (US$)]

Comparison with theprevious fiscal year

Previous fiscal year (Actual):110.43 yen
Current year (Assumed): 109.00 yen

Existing North
Other thanAgricultural &America
North America Seafood Products+0.08−0.24 Trading Business

−0.43

Other

−0.10

Adjustments

FX (North
America)

+0.27

−0.05

Segment
strategic
expenses

−0.58

Group
strategic
expenses−1.13(Unit: billions of yen)

6.70

FY ended
December 2018
results• Strategic expenses are front-loaded expenses toward business structural change
and business format reform.
(Segment strategic expenses are mainly related to existing business in North
America. Group strategic expenses are spent as groupwide expenses that do notbelong to any single segment.)* Starting from the first quarter of the fiscal year ending December 2019, we changed the method for calculating the net defined
benefit liability of our domestic consolidated subsidiaries from the simplified method from the projected benefit obligations (PBO)
method and applied the new method retroactively. Hence, the figures stated for the first quarter of the fiscal year ended December
2018 are those after the retroactive application.
* This page shows figures after excluding segment strategic expenses, group strategic expenses, and unrealized profit from eachsegment for the purpose of clarifying fluctuations in operating income.

2019 Nishimoto Wismettac Group All rights reserved.

4.50

FY ending
December 2019
forecast(After revision)
10Policy of Returning Profits to Shareholders

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 to maintain retained earnings to develop its businesses in the future and to improve its
financial strength.
The Company plans to pay dividends twice a year (interim and year-end). The annual dividend per sharefor the fiscal year ending December 2019 is forecast to be an annual 95 yen, which is divided into 40 yen
for the interim dividend (already distributed) and 55 yen for the year-end dividend (the amount isunchanged.)

Dividend per share(yen)

95 yen95 yen55
Year-end
dividend

55
Year-end
dividend

40
Interimdividend

40
Interimdividend

FY ended December
2018 (Results)

FY ending December 2019
(Forecast)

100

75

50

25

0

2019 Nishimoto Wismettac Group All rights reserved.

12

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,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 foodingredients 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 & CEO, Takayuki Kanai, President & COO

Number of Employees

1,676(including 1,404 in the Asian Food Global Business) [As of December 31st, 2018.]
 Development and sales of Asian food worldwide

Business

Subsidiaries and Affiliates

Business Sites

 Imports and sales of fruit, vegetables and related processed products, and supply offood ingredients to food manufacturers and the restaurant sector
10 subsidiaries, 5 affiliates
48 worldwide (including 24 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
2019 Nishimoto Wismettac Group All rights reserved.

* Overseas sales ratio 67.3%

61.5% (FY ended December 2018)14

Nishimoto Wismettac: Domestic and Overseas Business Sites
 Developing businesses worldwide with 48 global locations
 24 locations in the North American region (the U.S. and Canada)
13 COMPTOIRS DES 3 CAPS SARL・COMPTOIRS OCEANIQUES| ・CAP CAVALLY
16 ・TROPIC FISH
12 SSP Konsumgüter TRADE & CONSULT GmbH

Calgary Office

10 Harro Foods Limited

Denver Office
Wismettac Asian
4 Foods, Inc. (Canada)

1 Nishimoto Co., Ltd.
WF Seoul Representative Office

7 NTC Wismettac Europe B.V.

8
WF Paris Representative Office

Las Vegas Office

Wismettac Foods,

2 Inc.

Seattle Office
Sacramento Office

Wismettac Foods
Shanghai Co., Ltd.

San Francisco Office

9 Shanghai IPM Co., Ltd.

3

11 Nippon Foods Co., Ltd.

Wismettac Asian
Foods, Inc.

Hawaii Office

WF Ho Chi Minh Representative Office

WF Kobe Office

WF Bangkok Representative Office

WF Kobe Branch
WF Naha Representative Office

5 NTC Wismettac Singapore Pte.Ltd.

Chicago Office
Toronto OfficeMontreal Office
Boston Office
New York Office
Washington, DC OfficeRaleigh Office
Ohio Office

San Diego OfficeMiami Office

Arizona OfficeOrlando Office

Houston OfficeAtlanta Office

Dallas Office
NTC Wismettac Australia Brisbane Office

6 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”

2019 Nishimoto Wismettac Group All rights reserved.

15

Major Business Segment: Asian Food Global Business Distribution of Asian food ingredients and food products with a focus on Japanese food around the world,
centered on North America. Successful implementation of its own integrated operations from productdevelopment and planning through to sales and distribution.
←Compliance with related laws and regulations→
Product
development
and planning

Developing new
private brandproducts
and expanding
the private brandrange

Purchasing andProcurement

Customs
Clearance

Wide rangeof sourced
products anddiversesupplier base(about 8,000 items)

Storage

Sales

Logistics capabilities and systems

 Select the best producing region throughout the world Working with producers to develop products tailoredto customer needs
 Implementing production and quality control systems
that comply with local regulations“Shirakiku”
accounts forabout 40%in terms of sales(North Americanbusiness
performance, 2018)

Sortingand delivery

Marketing network
and North
Americanbusiness locations(24 locationsin North America)(38 locations
globally)

Developing products in line with customer needs

2019 Nishimoto Wismettac Group All rights reserved.

16

(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.

17

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

* In-house company calculation based on Ministry of Finance trade statistics
2019 Nishimoto Wismettac Group All rights reserved.

18

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 actuallymade, 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: 03-6870-20152019 Nishimoto Wismettac Group All rights reserved.