Consolidated Financial Results for FY2023 and Forecast for FY2024 [J-GAAP]May 12, 2023
Listed company name:
NIPPN CORPORATION
Listing:
The Prime Market of Tokyo Stock Exchange
Code number: 2001
URL:
https://www.nippn.co.jp/
TEL:03-3511-5307
Representative:
Toshiya Maezuru, President and Chief Operating Officer
Contact:
Koichiro Fukuyama, General Manager of Corporate Communications Group
Date of the general meeting of shareholders:June 29, 2023
Payment date of cash dividends:
June 30, 2023
Filing date of financial statements:
June 29, 2023
Supplementary materials prepared:
Yes
Results information meeting held:
Yes*Amounts less than one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Consolidated operating results(Millions of yen, percentage figures show the rates of change from the previous year.)

Net Sales
FY2023
365,525
FY2022
321,317(Note) Comprehensive income:

Profit Attributable to
Owners of Parent
14,816
3.8%
10,26010.0%
14,270
12.7%
9,327
8.0%
FY2022: ¥12,514 million (-6.1%)

Operating Income

Ordinary Income

13.8%
12,288
8.9%
11.4%
11,2828.8%
FY2023: ¥17,481 million (39.7%)

Profit per Share(Yen)

Fully Diluted Profit
per Share (Yen)

Ordinary Income toTotal Assets (%)

ROE (%)FY2023132.16115.39FY2022121.59106.02(Reference) Equity in earnings of affiliated companies: FY2023: ¥309 million

5.7
5.5
FY2022: ¥237 million

Operating Income to
Net Sales (%)

4.4
4.5

3.4
3.5

(2) Consolidated financial position(Millions of yen)

Total Assets
FY2023
FY2022(Reference) Equity capital:

Equity Ratio(%)

Net Assets

344,606
192,613
325,869
178,697
FY2023: ¥188,687 million

54.8
53.4
FY2022: ¥174,120 million

Net Assets per Share(Yen)
2,421.48
2,268.30(3) Consolidated cash flows(Millions of yen)

Cash Flows fromOperating Activities
FY2023
FY2022

Cash Flows from
Investing Activities

15,055
11,975

Cash Flows from
Financing Activities(5,026)(10,103)(8,402)(4,278)Cash and Cash
Equivalents at the End of
the Year
33,157
31,215

2. Dividends
Dividends per Share(Yen)
1Q-end2Q-end3Q-endYear-end

Full Year

―
―
―

18.00
19.00
20.00

―
―
―

20.00
21.00
20.00

38.00
40.00
40.00

FY2022
FY2023
FY2024 (Forecast)

Total Amountof CashDividends(Millions of yen)

2,923
3,124

Dividend
Payout Ratio(Consolidated)
(%)
31.3
30.3
28.9

Dividends on
Net Assets(Consolidated)
(%)
1.7
1.7

3. Forecast of consolidated business results for FY2024 (From April 1, 2023 to March 31, 2024)(Millions of yen, percentage figures show the rate of changes from the same period of the previous year.)

Net Sales
Half Year
Full Year

191,000
387,000

8.2%
5.9%

Operating Income

Ordinary Income

6,300
12,5007,400
14,600

8.1%
1.7%

2.6%
(1.5)%

Profit Attributable to
Owners of Parent
5,100
2.8%
10,800
5.3%

Profit per Share
(Yen)
65.45
138.60* Notes(1) Significant changes in subsidiaries during the term (changes in specified subsidiaries in accordance with changes inthe scope of consolidation): None
(2) Changes in accounting policies, accounting estimates and retrospective restatements
1) Changes in accounting policies due to revisions of accounting standards:
Yes2) Changes other than 1):
None3) Change in accounting estimates:
None4) Retrospective restatements:
None(3) Number of shares issued and outstanding (common stock)1) Number of shares outstanding at the end of
FY2023each period (including treasury shares):
2) Number of treasury shares at the end of each
FY2023
period:3) Average number of shares:

FY202378,824,009 shares

FY202278,824,009 shares

860,850 shares FY2022

2,021,404 shares

77,633,189 shares FY2022

76,712,872 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated financial results for the year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results(Millions of yen, percentage figures show the rates of change from the previous year.)

FY2023
FY2022Net Sales
225,01416.3%
193,558
6.9%
Profit per Share (Yen)FY2023
FY2022

Operating Income
8,942(5.8)%
9,489(2.3)%

Ordinary Income
11,613(7.1)%
12,496
17.8%

Profit3,414(66.6)%
10,222
34.7%

Fully Diluted Profit per
Share (Yen)

43.88
132.9338.23
115.96(2) Non-consolidated financial position(Millions of yen)

Total Assets
FY2023
FY2022(Reference) Equity capital:

Net Assets

271,119
158,797257,369
150,552
FY2023: ¥158,570 million

Equity Ratio
(%)
58.5
58.4
FY2022: ¥150,357 million

Net Assets per Share(Yen)
2,030.01
1,953.89* These consolidated financial results are outside the scope of audit.
* Explanation regarding the appropriate use of projected financial results and other special instructions
Descriptions regarding the future, including the financial outlook contained in this material, are based on certain
information currently available to the Company and particular assumptions, which are, at the discretion of theCompany, deemed reasonable, and actual financial results may significantly vary due to various factors. Please refer
to “1. Overview of Financial Results (1) Overview of business results for the fiscal year under review 2) Future
outlook” on page 4 for information on preconditions underlying the above outlook and other related information.

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

Contents
1. Overview of Financial Results ...................................................................................................................... 2(1) Overview of business results for the fiscal year under review ............................................................... 2(2) Overview of financial position for the fiscal year under review ............................................................ 5(3) Basic policy on profit distribution and dividends for the year ended March 31, 2023 and the year
ending March 31, 2024 ........................................................................................................................... 7
2. Basic Approach to the Selection of Accounting Standards........................................................................... 7
3. Consolidated Financial Statements ............................................................................................................... 8(1) Consolidated balance sheets ................................................................................................................... 8(2) Consolidated statements of income and comprehensive income.......................................................... 10(Consolidated statements of income).................................................................................................... 10(Consolidated statements of comprehensive income) .......................................................................... 12(3) Consolidated statements of changes in net assets ................................................................................. 13(4) Consolidated statements of cash flows ................................................................................................. 15(Segment information, etc.) ........................................................................................................................ 17(Revenue recognition) ................................................................................................................................ 18(Per share information) ............................................................................................................................... 19(Important subsequent events) .................................................................................................................... 19

1

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

1. Overview of Financial Results(1) Overview of business results for the fiscal year under review
1) Business results for the fiscal year under review(Millions of yen)

Fiscal 2022

Fiscal 2023

Difference

ChangeNet sales

321,317

365,525

44,208113.8%

Operating income

11,282

12,2881,006

108.9%

Ordinary income

14,27014,816545

103.8%

Profit attributableto owners of parent

9,327

10,260932

110.0%

During the fiscal year ended March 31, 2023, the Japanese economy was on a recovery track as
economic activity showed renewed vitality amid indications that the COVID-19 pandemic was abating.
In view of persistently high manufacturing and logistics costs, reflecting soaring prices of raw materials
and energy owing to such factors as financial market fluctuations due to the yen’s sharp depreciation andworsening labor shortages, in addition to the Russo-Ukraine situation and other geopolitical risks, theimpact of price hikes on consumption is a concern. Thus, the outlook for business confidence remains
uncertain,
The business environment of the food industry is becoming increasingly severe in light of soaring
raw materials prices and other factors, despite signs of a modest increase in the tempo of personal
consumption.
In these circumstances, under our management philosophy of “contributing to the realization of asustainable society by pursuing the well-being (happiness, health, and smiles) of people,” we are working
with our customers, employees, shareholders, society, and other stakeholders to create future-focusedvalue. In addition to cost reductions through operational improvements, we are striving to strengthen ourbusiness foundation by further bolstering sales of mainstay products through upfront investments to
expand sales and by enhancing our competitive advantage by providing high-value-added products andservices. Furthermore, to help realize a sustainable society, we have been developing ingredients such as
plant-based foods with excellent credentials in terms of sustainability and applying them to existinghome-use and frozen food products. For example, SOYL PRO is a soybean-based food whose
development involved application of tofu processing technology.
We are strengthening the framework for contributing to the realization of a sustainable society. In thisregard, we announced our endorsement of the Task Force on Climate-related Financial Disclosure(TCFD) in February 2023. On the environmental front, we are expanding the use of paper containers to
reduce plastic waste while also promoting introduction of solar power generation equipment.
Consolidated net sales for the fiscal year under review increased by 13.8% year on year to ¥365,525
million, reflecting the implementation of sales price revisions in response to rising raw materials prices
and various other costs, in addition to a continuing recovery in demand, following the relaxation of
restrictions on activities. In terms of profit, despite repeated increases in raw materials prices and various
other costs and an increase in strategic costs for sales expansion, operating income increased by 8.9% to¥12,288 million, ordinary income increased by 3.8% to ¥14,816 million, and profit attributable to ownersof parent increased by 10.0% to ¥10,260 million, reflecting an increase in shipments due to a recovery indemand mainly in the restaurant sector and cost reductions due to improved productivity.

2

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

The performance of individual business segments was as follows.
Flour Milling(Millions of yen)

Fiscal 2022

Fiscal 2023

Difference

ChangeNet sales

96,934

117,604

20,669121.3%

Operating income

6,211

7,528

1,316

121.2%The Group is strengthening quality control in response to the growing preoccupation with the safety
and security of food throughout society. At the same time, to address customer needs and diversifying
food preferences, the Group promoted sales initiatives with a view to resolving the issues that concern
customers.
Moreover, we strove to strengthen relationships with customers and enhance sales capabilities andbrand power while stepping up sales activities, in order to seize every opportunity associated with therecovery of demand in the aftermath of the COVID-19 pandemic. In the Flour Milling business, sales
were higher than the levels for the previous year, mainly because of the wheat flour price revision and arobust trend in sales prices of wheat bran, a by-product.
In line with the increase of government sales prices (tax inclusive) of imported wheat by 17.3% on
average for the five key products in April 2022, we revised the prices of wheat flour products for
professional use from June 2022. However, as the Japanese government has not changed the sales prices
since October 2022, we did not change the prices of wheat flour products for professional.
As a result, net sales for the Flour Milling segment increased by 21.3% year on year to ¥117,604
million, and operating income increased by 21.2% to ¥7,528 million.
Food(Millions of yen)

Fiscal 2022

Fiscal 2023

Difference

ChangeNet sales

185,911

204,796

18,885110.2%

Operating income

4,068

3,449

(619)

84.8%

In the professional-use category, sales of products were higher than the level for the previous year,
because demand showed a tendency to recover owing to the relaxation of the restrictions on activities andin reaction to the decline in previous years reflecting the government’s request to large commercial
facilities, restaurants, etc. to shorten opening hours, and because of price revisions in response to rising
prices of raw materials and other items.
In the home-use product category, although demand for products for consumption at home associatedwith people refraining from going out ran its course, sales of products in this category were higher thanthe level for the previous year, owing to price revisions in 2022.
In the frozen foods category, in addition to buoyant shipments of commercial-use frozen foodsreflecting the recovery in demand from the restaurant sector, demand for home-use frozen foods, such as
the One Plate Meal series of complete meals consisting of a main dish and staples in a tray and theTrendy Meal series of rice dishes, was brisk. In addition, the revision of prices of home-use frozen foods
in 2022 also contributed to higher sales. As a result, sales of products in this category were higher thanthe level for the previous year.
In the ready-made meals business, sales were higher than the level for the previous year because ofrecovery of demand in line with the relaxation of the restrictions on activities.
As a result, net sales of the Food segment increased by 10.2% year on year to ¥204,796 million,
while operating income decreased by 15.2% to ¥3,449 million.

3

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

Other(Millions of yen)

Fiscal 2022

Fiscal 2023

Difference

ChangeNet sales

38,471

43,123

4,652

112.1%

Operating income

996

1,263

267

126.8%

Sales of the pet food business were higher than the level for the previous year because of pricerevisions and an increase in shipped volumes of products whose unit prices are high.
Sales of the restaurant business were higher than the level for the previous year, reflecting therecovery of demand in line with the relaxation of the restrictions on activities and price revisions.
As a result, net sales for the Other segment increased by 12.1% year on year to ¥43,123 million, andoperating income increased by 26.8% to ¥1,263 million.
2) Future outlook
The Japanese economy is heading toward normalization as the government endeavors to strike abalance between the promotion of economic activities and COVID-19 countermeasures. However, thecurrent uncertain situation is expected to continue for the time being with regard to increases in raw
materials and energy prices reflecting geopolitical risks and sharp exchange rate fluctuations.
In its long-term vision, the Group aims to grow to a scale of ¥500 billion in net sales and ¥25 billion
in operating income on a consolidated basis. As a milestone on the path to achieving this goal, we aim toachieve ¥400 billion in net sales and ¥15 billion in operating income by FY2026.
In order to achieve this goal, we will endeavor to grow our core businesses of flour milling, foodingredients, and processed foods by strengthening our brand power, developing differentiated products,
and increasing production capacity. We position frozen foods, ready-made meals, healthcare, andoverseas business, which are growth businesses, as priority fields and are focusing management
resources on these priority fields while promoting improvement and expansion of supply bases as well as
acquisitions and alliances to enhance sales and profit.
In accordance with the management philosophy, the Group will strive to further enhance its corporate
value by sincerely addressing the issues confronting society such as climate change and otherenvironmental issues, the need for effective use of food resources, population issues, and the extension ofhealthy life expectancy.
For the year ending March 31, 2024, management forecasts consolidated net sales of ¥387.0 billion(an increase of 5.9% year on year), operating income of ¥12.5 billion (an increase of 1.7%), ordinary
income of ¥14.6 billion (a decrease of 1.5%), and profit attributable to owners of parent of ¥10.8 billion(an increase of 5.3%).

4

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(2) Overview of financial position for the fiscal year under review
1) Assets, liabilities and net assets(Millions of yen)

As of March 31, 2022

As of March 31, 2023

Difference

Current assets

130,768

143,021

12,253

Non-current assets

195,063

201,557

6,494

37

26

(11)

325,869

344,606

18,737

Current liabilities

74,842

78,613

3,771

Non-current liabilities

72,32873,378

1,050

Total liabilities

147,171

151,992

4,821

Total net assets

178,697

192,613

13,915

Total liabilities and net assets

325,869

344,606

18,737

Deferred assets
Total assets

Total assets at the end of fiscal 2023 increased by ¥18,737 million from the previous fiscal year end(March 31, 2022) to ¥344,606 million. This was mainly because investment securities, raw materials andsupplies, notes and accounts receivable - trade and contract assets, and cash and deposits increased by¥8,253 million, ¥5,051 million, ¥3,653 million, and ¥2,751 million, respectively.
Total liabilities increased by ¥4,821 million from the previous fiscal year end to ¥151,992 million.
This was mainly because deferred tax liabilities and notes and accounts payable - trade increased by¥2,931 million and ¥2,759 million, respectively.
Net assets increased by ¥13,915 million from the previous fiscal year end to ¥192,613 million. Thiswas mainly because retained earnings and unrealized holding gain (loss) on securities increased by¥7,148 million and ¥6,052 million, respectively.

5

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

2) Cash flows(Millions of yen)

Fiscal 2022

Fiscal 2023

Difference

Cash flows from operating
activities

11,975

15,055

3,080

Cash flows from investing
activities(10,103)(5,026)

5,077

Cash flows from financing
activities(4,278)(8,402)(4,124)

Effect of exchange rate changes
on cash and cash equivalents

209

394

185

Net increase (decrease) in cash
and cash equivalents(2,196)

2,021

4,218

Decrease in cash and cash
equivalents resulting fromexclusion of subsidiaries fromconsolidation(1,908)

(78)

1,830

Cash and cash equivalents at endof period

31,21533,157

1,942

As of March 31, 2023, the balance of cash and cash equivalents stood at ¥33,157 million, an increaseof ¥1,942 million compared with the end of the previous fiscal year. The conditions of cash flows wereas follows.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥15,055 million. This mainly reflected¥14,710 million for profit before income taxes, ¥9,966 million for depreciation, ¥7,524 million forincrease in inventories and ¥3,796 million for income taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥5,026 million. This mainly reflected spending of¥7,835 million for purchase of fixed assets and ¥2,114 million for proceeds from sales and redemption of
securities.
(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥8,402 million. This mainly reflected spending of¥5,116 million for repayment of loans payable and ¥3,023 million for cash dividends paid.

6

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023―Cash flow indicator trends―
FY2019FY2020

FY2021

FY2022

FY2023Equity ratio (%)

51.2

52.9

53.3

53.4

54.8

Equity ratio at market value (%)

49.6

44.5

41.3

39.2

37.5

Ratio of interest-bearing debt to cash flows (%)

212.4

246.2

304.7

364.5

259.7

Interest coverage ratio (times)

71.3

73.1

71.7

60.8

74.4

Note: Equity ratio: (Net assets – Minority interests) / Total assets
Equity ratio at market value: Market capitalization / Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows from operating activities / Interest expense* The consolidated financial figures constitute the basis for calculating these indicators.
* Market capitalization is calculated by multiplying the closing stock price at the end of the period by the number of shares
outstanding at the end of the period (after the deduction of treasury shares).
* The basis for calculating the ratio of interest-bearing debt to cash flows is cash flows from operating activities in the
consolidated statements of cash flows.
* Interest-bearing debt includes all debts recorded on the consolidated balance sheets on which interest is paid.
* The basis for interest expense is the amount of interest paid recorded in the consolidated statements of cash flows.

(3) Basic policy on profit distribution and dividends for the year ended March 31, 2023 and the year
ending March 31, 2024
Management considers returning profits to shareholders to be an important management issue. The
Company’s basic policy is to maintain stable and sustainable dividend payments, with a target payout
ratio of 30% or more, while taking into consideration the strengthening of the corporate structure, futurebusiness development, and the business environment, as well as internal reserve.
We intend to use free cash flow from a long-term perspective, taking into consideration investment
efficiency. Moreover, we intend to flexibly conduct share buybacks.
For the year ended March 31, 2023, the Company will submit a proposal to the Annual Shareholders
Meeting for the appropriation of surplus to pay a year-end dividend of ¥21 per share as an ordinary
dividend.
The annual dividends, together with the interim dividend already paid, will be ¥40 per share. As aresult, dividends will increase for five consecutive fiscal years from the fiscal year ended March 31,
2019.
With regard to cash dividends for the year ending March 31, 2024, the Company plans to pay total
cash dividends of ¥40 per share for the full year.
Furthermore, the Company has a shareholder benefit program designed to facilitate shareholders’
understanding of the Group’s products and to earn their support.
2. Basic Approach to the Selection of Accounting Standards
The Group intends to prepare consolidated financial statements in conformity with the accounting
principles and practices generally accepted in Japan (Japanese GAAP) for the time being, taking into
consideration comparability of consolidated financial statements over time and comparability among
companies.
The Group’s policy is to respond to the application of the International Financial Reporting Standards(IFRS) in an appropriate manner, taking into consideration situations in Japan and abroad.

7

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

3. Consolidated Financial Statements(1) Consolidated balance sheets(Millions of yen)

FY2022(As of March 31, 2022)

FY2023(As of March 31, 2023)

Cash and deposits

34,06336,815

Notes and accounts receivable - trade andcontract assets

50,466

54,119Merchandise and finished goods

18,484

20,91857

222

Raw materials and supplies

21,34826,400

Other current assets

6,407

4,607

(59)

(61)

130,768

143,021

Property, plant and equipment
Buildings and structures

109,650

109,932

Accumulated depreciation(61,067)(63,187)

Buildings and structures, net

48,582

46,745

Machinery, equipment and vehicles

125,592

128,309(103,100)(107,139)

22,492

21,17041,45341,027471

1,741

13,85014,497(11,238)(11,715)

2,611

2,782

115,611

113,467

2,529

2,175

Investment securities

69,001

77,254Long-term loans receivable
Deferred tax assets

35
1,628

40
2,075

Retirement benefit asset

2,015

2,370

Other

4,628

4,492

Allowance for doubtful accounts

(385)

(320)

Total investments and other assets

76,922

85,914

195,063

201,55737

26

325,869

344,606

AssetsCurrent assets

Work in process

Allowance for doubtful accounts
Total current assets
Non-current assets

Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Deferred assets
Total assets

8

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(Millions of yen)

FY2022(As of March 31, 2022)

FY2023(As of March 31, 2023)

33,91036,669

Short-term loans payable

19,53017,572Current portion of bonds

91

221

Income taxes payable
Accrued expenses

1,926
7,578

2,645
8,132

Refund liabilities

7,029

7,445

Provision for bonuses

705

764

Other current liabilities

4,070

5,161

Total current liabilities

74,842

78,613349

128

25,05625,03823,684

21,175

Deferred tax liabilities

14,742

17,673Retirement benefit liability
Accrued retirement benefits for directors

3,810
462

3,881
406

Other non-current liabilities

4,224

5,075

Total non-current liabilities

72,32873,378147,171

151,992

Capital stock

12,24012,240Capital surplus

11,307

9,693

Retained earnings

121,817

128,965

Treasury shares(3,198)(1,287)

Total shareholders’ equity

142,166

149,61230,40936,462

Deferred gain (loss) on hedges

88

(23)

Foreign currency translation adjustment

981

2,161

Retirement benefit liability adjustments

475

473

Total accumulated other comprehensive
income31,95439,074

Subscription rights to shares

195

226

Non-controlling interests

4,381

3,699

178,697

192,613

325,869

344,606

Liabilities
Current liabilities
Notes and accounts payable - tradeNon-current liabilities
Bonds payable
Convertible bond-type bonds with subscription
rights to shares
Long-term loans payable

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Unrealized holding gain (loss) on securities

Total net assets
Total liabilities and net assets
9

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(2) Consolidated statements of income and comprehensive income(Consolidated statements of income)(Millions of yen)

FY2022(From April 1, 2021
to March 31, 2022)

FY2023(From April 1, 2022
to March 31, 2023)

Net sales

321,317

365,525

Cost of sales

246,390

285,452

Gross profit

74,92680,073

Selling, general and administrative expenses
Freight, sales commission and other expenses

21,18323,70722,26322,935687

549

Depreciation

1,462

1,491

Other

18,047

19,101

Total selling, general and administrative
expenses

63,64467,785

11,282

12,288Interest income

76

77

Dividend income

1,569

1,923

230

227

237

309

248

95

Other

1,254

833

Total non-operating income

3,616

3,468

Interest expenses

208

202

Cost of rent income
Share exchange related expenses

(13)
10

18
222

Other

422

496

Total non-operating expenses

627

940

14,27014,816247

12

Gain on sale of investment securities

1,079

743

Total extraordinary income

1,327

756

Salaries and allowances
Retirement benefit expenses

Operating income
Non-operating income

Rent income on fixed assets
Share of profit of entities accounted for using
equity method
Foreign exchange gains

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sale of fixed assets

10

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(Millions of yen)

FY2022(From April 1, 2021
to March 31, 2022)

FY2023(From April 1, 2022
to March 31, 2023)

Loss on sale and disposal of fixed assets

137

228

Impairment loss

104

514

Loss of valuation of investment securities

26

82

1,602

–

157

36

2,028

862

Profit before income taxes

13,56814,710

Income taxes - current

4,186

4,494

Income taxes - deferred

209

(132)

Total income taxes

4,396

4,362

Profit9,172

10,347

Profit (loss) attributable to non-controlling interests

(154)

87

Profit attributable to owners of parent

9,327

10,260Extraordinary expenses

System failure response costs
Other
Total extraordinary losses

11

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(Consolidated statements of comprehensive income)(Millions of yen)

FY2022(From April 1, 2021
to March 31, 2022)

FY2023(From April 1, 2022
to March 31, 2023)

9,172

10,347

2,622

6,059

Deferred gain (loss) on hedges

51

(113)

Foreign currency translation adjustment

477

1,176

Retirement benefit liability adjustments

169

4

Share of other comprehensive income of entities
accounted for using equity method

21

5

3,341

7,133

12,514

17,481

12,67017,376(156)

105

ProfitOther comprehensive income (loss)
Unrealized holding gain (loss) on securities

Total other comprehensive income (loss)
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income (loss) attributable tonon-controlling interests

12

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(3) Consolidated statements of changes in net assets
FY2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholder’sequity12,24011,308115,366(3,317)

135,598

Balance at beginning of current
periodChanges of items during period
Dividends of surplus(2,844)(2,844)

Profit attributable to owners ofparent

9,327

9,327
–

Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares

(9)

(0)

(0)

118

109
–

Change due to share exchanges
Change due to businesscombination
Change in treasury shares of parent
arising from transactions with
non-controlling shareholders

(1)

(22)

(22)

(1)

(2)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

(1)

6,450

118

6,567

12,24011,307

121,817(3,198)142,166

Accumulated other comprehensive income

Balance at beginning of current
periodUnrealized
holding
gain (loss)
onsecurities

Deferred
gain(loss) on
hedgesForeigncurrencytranslation
adjustment

Retirement
benefit liability
adjustments

Total
accumulated
othercomprehensive
incomeSubscription
rights toshares27,770

37

493

308

28,610234

Noncontrollinginterests

Total net
assets4,620

169,063

Changes of items during period
Dividends of surplus(2,844)

Profit attributable to owners ofparent9,327

Change in scope of consolidation–

Purchase of treasury shares(0)

Disposal of treasury shares

109–

Change due to share exchanges
Change due to businesscombination(22)

Change in treasury shares of parent
arising from transactions with
non-controlling shareholders(2)

Net changes of items other thanshareholders’ equity

2,639

50

487

166

Total changes of items during period

2,639

50

487

Balance at end of current period

30,409

88

981

13

3,343

(38)

(238)

3,066

166

3,343

(38)

(238)

9,634

475

31,954195

4,381

178,697

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

FY2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholder’sequity12,24011,307

121,817(3,198)142,166

Balance at beginning of current
periodChanges of items during period
Dividends of surplus(3,023)(3,023)

Profit attributable to owners ofparent10,26010,260Change in scope of consolidation

(69)

(69)

Purchase of treasury shares

(2)

(2)

Disposal of treasury shares

(0)

34

34

Change due to share exchanges

(18)

1,878

1,860

Change due to businesscombination–

Change in treasury shares of parent
arising from transactions with
non-controlling shareholders(1,613)(1,613)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period–(1,613)

7,148

1,911

7,446

12,2409,693

128,965(1,287)

149,612

Accumulated other comprehensive income

Balance at beginning of current
periodUnrealized
holding
gain (loss)
onsecurities

Deferred
gain(loss) on
hedgesForeigncurrencytranslation
adjustment

Retirement
benefit liability
adjustments

Total
accumulated
othercomprehensive
incomeSubscription
rights toshares30,409

88

981

475

31,954

195

Noncontrollinginterests

Total net
assets

4,381

178,697

Changes of items during period
Dividends of surplus(3,023)

Profit attributable to owners ofparent10,260Change in scope of consolidation(69)

Purchase of treasury shares(2)

Disposal of treasury shares

34

Change due to share exchanges

1,860

Change due to businesscombination–

Change in treasury shares of parent
arising from transactions with
non-controlling shareholders
Net changes of items other thanshareholders’ equity(1,613)

6,052

(111)

1,180

(1)

Total changes of items during period

6,052

(111)

1,180

(1)

7,120

31

(682)

13,915

Balance at end of current period

36,462

(23)

2,161

473

39,074

226

3,699

192,613

14

7,120

31

(682)

6,468

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(4) Consolidated statements of cash flows(Millions of yen)

FY2022(From April 1, 2021
to March 31, 2022)

FY2023(From April 1, 2022
to March 31, 2023)

Profit before income taxes

13,56814,710Depreciation

10,232

9,966

Increase (decrease) in net retirement benefit
asset/liability

(475)

(132)

Increase (decrease) in provision for directors’
retirement benefits

(323)

(50)

Increase (decrease) in allowance for doubtful
accounts

(74)

(65)

Impairment loss

104

514

(1,645)(2,001)208

202(1,104)

(804)

26
(184)

82
(93)

(237)

(309)

(244)

46

Loss on disposal of fixed assets

141

181

System failure response costs

1,602

–

24

–

Decrease (increase) in notes and accounts
receivable - trade(8,609)(3,468)Decrease (increase) in inventories(5,563)(7,524)

Increase (decrease) in notes and accounts
payable - trade

7,708

2,555

Increase (decrease) in accrued consumption taxes

(244)

2,385

Decrease (increase) in other receivables

(81)

(598)

Increase (decrease) in other payables

37

1,290

Other, net

327

143

Subtotal

15,194

17,031

Interest and dividend income received

1,640

2,022

Interest expenses paid

(196)

(202)

Income taxes paid

(4,661)(3,796)

Net cash provided by (used in) operating
activities

11,975

15,055

Operating activities

Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Foreign exchange losses (gains)
Equity in (earnings) losses of unconsolidated
subsidiaries and affiliates
Loss (gain) on sale of fixed assets

Loss (gain) on sale of shares of subsidiaries andassociates

15

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(Millions of yen)

FY2022(From April 1, 2021
to March 31, 2022)

FY2023(From April 1, 2022
to March 31, 2023)

(677)

(546)

(10,657)(7,835)

357

1,205

Purchase of securities–(1,000)

Proceeds from sale and redemption of securities

–

2,114

Purchase of investment securities(1,154)(176)

Proceeds from sale and redemption of
investment securities

2,043

1,593

Purchase of shares of subsidiaries resulting inchange in scope of consolidation

–

(295)

Payments for sale of shares of subsidiaries
resulting in change in scope of consolidation

(45)

–

Payments of loans receivable

(7)

(17)

Collection of loans receivable
Other, net

11
24

13
(81)

(10,103)(5,026)

Net increase (decrease) in short-term loans
payable(2,695)(2,713)

Proceeds from long-term loans payable

4,078

660

Repayment of long-term loans payable(2,307)(2,402)

Redemption of bonds

(96)

(91)

Purchase of treasury shares

(0)

(2)

(2,844)(3,023)

Dividends paid to non-controlling interests

(32)

(19)

Repayments of finance lease obligations

(330)

(299)

Other, net

(50)

(511)

Net cash provided by (used in) financing
activities(4,278)(8,402)

Effect of exchange rate change on cash and cash
equivalents

209

394

Net increase (decrease) in cash and cash
equivalents(2,196)

2,021

Cash and cash equivalents at beginning of period

35,32031,215Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries fromconsolidation(1,908)(78)

Cash and cash equivalents at end of period

31,21533,157

Investing activities
Decrease (increase) in time deposits
Purchase of fixed assets
Proceeds from sale of fixed assets

Net cash provided by (used in) investing
activities
Financing activities

Cash dividends paid

16

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(Segment information, etc.)
a. Segment information
1. Overview of reportable segments
The Group’s reportable segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofmanagement resources and evaluate business results.
The Group consists of three main business units classified by product types—Flour Milling, Food andOther. Each business unit formulates business strategies and promotes business activities.
The Group has classified its operations into two reportable segments: Flour Milling and Food.
The Flour Milling segment covers wheat flour, bran, and buckwheat flour, while the Food segment
covers wheat flour for home use, premixes, pasta, frozen foods, deli foods, and rice flour.
2. Calculation methods for sales, profit (loss), assets, liabilities and other items by reportablesegment
Profit figures reported for business segments are based on operating income. Inter-segment sales andtransfers are based on prevailing market prices.
3. Information on sales, profit (loss), assets, liabilities and other items by reportable segment andinformation on disaggregation of revenue
FY2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)

Reportable segments

Amounts
recorded in
Adjustments consolidated
financialstatements

Other

Total

282,800

37,516320,316–

320,316

46

46

954

1,000

–

1,000

96,934

185,911282,846

38,471

321,317–

321,317

2,060

606

2,667

2,391

5,058

(5,058)–Flour
Milling

Food

Total

96,934

185,865–

Net sales to external customers
Internal sales or transfers
between segments

Net sales
Revenue from contracts withcustomers
Other revenue

98,995186,518

285,51340,862

326,376(5,058)321,317

Segment income

Total

6,211

4,068

10,280996

11,277

4

11,282

Segment assets

109,620

125,667

235,287

23,713

259,001

66,867

325,869

3,193

5,449

8,643

1,199

9,842

390

10,232Other items
Depreciation

Increase in property, plant andequipment and intangible
2,109
8,095
10,205
1,193
11,398210
11,608assets
Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including pet food, health food,engineering, restaurant and real estate leasing.
2. Segment income adjustment of ¥4 million is an elimination of inter-segment transactions.
3. Corporate assets included in adjustments of segment assets amounted to ¥66,402 million and mainly comprise theCompany’s surplus funds (cash and deposits, and securities) and property, plant and equipment concerning
administrative operations.
4. Adjustments amounting to ¥210 million for the increase in property, plant and equipment and intangible assets
mainly relate to capital investment by the administrative departments and elimination of inter-segment
transactions.
5. Segment income or loss is adjusted to reflect operating income as recorded in the consolidated financial
statements.
6. Depreciation expenses and an increase in property, plant and equipment and intangible assets include an increasein long-term prepaid expenses and amortization thereof.
7. The standards for allocation of fixed assets to segments are different from the standards for allocation of related
depreciation.

17

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023

FY2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)

Reportable segments

Amounts
recorded in
Adjustments consolidated
financialstatements

Other

Total

322,355

42,166364,521–364,521

46

46

957

1,003

–

1,003

117,604

204,796

322,401

43,123

365,525–

365,525

2,607

674

3,281

2,201

5,483

(5,483)–

Flour
Milling

Food

Total

117,604

204,750–

Net sales
Revenue from contracts withcustomers
Other revenue
Net sales to external customers
Internal sales or transfers
between segments

120,212205,471

325,683

45,325371,009(5,483)

365,525

Segment income

Total

7,528

3,449

10,978

1,263

12,24245

12,288Segment assets

117,802132,403250,206

24,488274,694

69,911

344,606

2,792

5,553

8,346

1,190

9,536

430

9,966

Other items
Depreciation

Increase in property, plant and
2,837
4,109
6,947
1,483
8,431
(75)
8,355
equipment and intangible
assets
Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including pet food, health food,engineering, restaurant and real estate leasing.
2. Segment income adjustment of ¥45 million is an elimination of inter-segment transactions.
3. Corporate assets included in adjustments of segment assets amounted to ¥70,028 million and mainly comprise theCompany’s surplus funds (cash and deposits, and securities) and property, plant and equipment concerning
administrative operations.
4. Adjustments amounting to ¥(75) million for the increase in property, plant and equipment and intangible assets
mainly relate to capital investment by the administrative departments and elimination of inter-segment
transactions.
5. Segment income or loss is adjusted to reflect operating income as recorded in the consolidated financial
statements.
6. Depreciation expenses and an increase in property, plant and equipment and intangible assets include an increasein long-term prepaid expenses and amortization thereof.
7. The standards for allocation of fixed assets to segments are different from the standards for allocation of related
depreciation.

(Revenue recognition)
Information on disaggregation of revenue from contracts with customers is as presented in (Segment
information, etc.).

18

NIPPN CORPORATION (2001) Consolidated Financial Results for FY2023(Per share information)
FY2022(From April 1, 2021
to March 31, 2022)

FY2023(From April 1, 2022
to March 31, 2023)¥2,268.30¥2,421.48

Profit per share¥121.59¥132.16

Fully diluted profit per share¥106.02¥115.39

FY2022(From April 1, 2021
to March 31, 2022)

FY2023(From April 1, 2022
to March 31, 2023)

Net assets per share

Note: Basis for the calculation of profit per share and fully diluted profit per share is as follows.

Profit per share
Profit attributable to owners of parent(Millions of yen)

9,327

10,260

Amount not attributable to common shareholders(Millions of yen)––Amount pertaining to common stock(Millions of yen)

9,327

10,260(Thousands of shares)

76,712

77,633

Amount attributable to owners of parent(Millions of yen)

(12)

(12)

<of which interest income (after deducting theamount equivalent to tax)>(Millions of yen)<(12)><(12)>(Thousands of shares)

11,149

11,172––Average number of shares of common stock in thefiscal year
Fully diluted profit per share

Increase in common stock
Summary of residual securities not included in
calculation of fully diluted profit per share becauseof no dilutive effect(Important subsequent events)
Not applicable.
Notes to consolidated statements of comprehensive income, lease transactions, financial instruments,
securities, derivative transactions, retirement benefits, stock options, tax effect accounting, businesscombinations, and related party information are omitted because the need to disclose such information in
the financial report is not considered significant.

19