Consolidated Financial Results for the First Half of FY2023 [J-GAAP]
November 4, 2022
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
Filing date of quarterly financial report:
November 7, 2022
Start of cash dividend payments:
December 5, 2022
Supplementary quarterly materials prepared:
Yes
Quarterly results information meeting held:
Yes (for institutional investors and analysts)*Amounts less than one million yen have been rounded down.

1. Consolidated financial results for the first half of FY2023 (From April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)(Millions of yen, percentage figures show the rate of change from the same period of the previous year.)

Net Sales

Operating Income

Ordinary Income

First half of FY2023
176,48812.0%5,829(0.7)%
7,211
First half of FY2022
157,535
11.9%
5,869
40.0%
7,362
(Note) Comprehensive income:First half of FY2023:¥7,725 million (26.8%)
First half of FY2022:¥6,090 million (4.0%)(2.0)%
43.1%

Profit Attributable to
Owners of Parent
4,963(5.2)%
5,235
47.9%

Fully Diluted Profit
per Share (Yen)Profit per Share (Yen)First half of FY2023

64.17

56.00

First half of FY2022

68.27

59.53

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

First half of FY2023

330,980

184,384

54.5%

FY2022

325,869

178,697

53.4%(Reference) Equity capital:

First half of FY2023:
FY2022:¥180,548 million¥174,120 million

2. Dividends
Dividends per Share (Yen)
1Q-end2Q-end3Q-endFY2022—18.00

FY2023—19.00

FY2023 (Forecast)Year-end

Full Year

—

20.00

38.00

—

19.00

38.00

(Note) Adjustment for the most recent forecast of the dividends in the current term: None

3. Forecast of the consolidated financial results for FY2023 (From April 1, 2022 to March 31, 2023)(Millions of yen, percentage figures show the rates of changes from the same period of the previous year.)

Full year

Net Sales

Operating Income

Ordinary Income

Profit Attributableto Owners of
ParentProfit per Share(Yen)

355,000 10.5%

10,100 (10.5)%

12,200 (14.5)%

8,300 (11.0)%

108.13(Note) Adjustment for the most recent forecast of the consolidated financial results in the current term: None

* Notes(1) Significant changes in subsidiaries during the current quarter (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial information: None
(3) 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) Changes in accounting estimates:
None4) Retrospective restatements:
None(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements (4) Notes on quarterly consolidated financial
information (Changes in accounting policies)” on page 13.

(4) Number of shares issued and outstanding (common stock)1) Number of shares outstanding at
the end of each period (including
treasury shares):
2) Number of treasury shares at theend of each period:3) Average number of shares(quarterly consolidated
cumulative period):First half of
FY2023First half of
FY2023First half of
FY202378,824,009

shares FY2022

78,824,009

shares860,138

shares FY2022

2,021,404

shares76,695,605

shares77,343,245

sharesFirst half of
FY2022* These consolidated financial results are outside the scope of quarterly review procedures by certified public accountants
or an audit corporation.
* 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 the Company,
deemed reasonable, and actual financial results may significantly vary due to various factors. Please refer to “1.
Qualitative Information on Quarterly Consolidated Financial Results, (3) Information on forecast of the consolidated
financial results” on page 6 for information on preconditions underlying the above outlook and other related
information.

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023

Contents
1.

Qualitative Information on Quarterly Consolidated Financial Results ..................................................... 2(1) Overview of business results ................................................................................................................. 2(2) Overview of financial position .............................................................................................................. 4(3) Information on forecast of the consolidated financial results ................................................................ 5
2. Quarterly Consolidated Financial Statements ........................................................................................... 6(1) Quarterly consolidated balance sheets ................................................................................................... 6(2) Quarterly consolidated statements of income and comprehensive income ........................................... 8(Quarterly consolidated statements of income) ..................................................................................... 8(Quarterly consolidated statements of comprehensive income) ............................................................ 9(3) Quarterly consolidated statements of cash flows................................................................................. 10(4) Notes on quarterly consolidated financial information ....................................................................... 12(Notes on going concern assumption) ................................................................................................. 12(Notes to significant changes in the amount of shareholders’ equity) ................................................. 12(Changes in accounting policies) ......................................................................................................... 12(Segment information, etc.) ................................................................................................................. 13

1

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of business results(Millions of yen)First six months of
Fiscal 2022

First six months of
Fiscal 2023

Difference

ChangeNet sales

157,535

176,488

18,953112.0%

Operating income

5,869

5,829

(39)

99.3%

Ordinary income

7,362

7,211

(150)

98.0%

Profit attributableto owners of parent

5,235

4,963

(272)

94.8%

During the first half of the fiscal year ending March 31, 2023, consumption behaviors changed by the
spread of COVID-19 generally trended toward normalization. However, amid soaring raw materials prices
and energy costs caused by the Russo-Ukraine situation, the rapid depreciation of the yen, extreme weather
conditions worldwide, and other factors, rising prices are resulting in heightened concerns of an economic
recession, and the outlook remains uncertain.
In the food industry, following the drop in demand in the restaurant sector and other sectors due to the
COVID-19 pandemic, demand has begun to recover, but manufacturing and transportation costs remainhigh due to soaring raw materials prices and energy costs, and the impact on the business environment isunpredictable.
In these circumstances, the Group aims to achieve sustainable growth by expanding its business fields
through greater emphasis on healthcare and global businesses and new businesses, in addition to reinforcing
the mainstay flour milling, food, and other businesses. To this end, we are working with our customers,
employees, shareholders, society, and other stakeholders to create future-focused value under ourmanagement philosophy of “contributing to the realization of a sustainable society by pursuing the wellbeing (happiness, health, and smiles) of people.” We are reinforcing existing businesses and vigorously
investing in promising fields in an effort to strengthen the business foundation even in an unpredictablebusiness environment with the aim of achieving growth to the scale of net sales of ¥500 billion andoperating income of ¥25 billion as envisaged in our long-term vision.
To establish our position as a comprehensive food company, we are working to strengthen the businessfoundation by promoting structural reform of existing businesses and continued development of growth
drivers, while optimally allocating management resources to create new businesses. In addition, by
promoting ESG management to reinforce the foundation for sustainable growth, we aim to achieve ¥400
billion in net sales and ¥15 billion in operating income by fiscal 2027 as a milestone on the path towardrealization of our long-term vision.
Consolidated net sales for the first half of fiscal 2023 increased by 12.0% year on year to ¥176,488
million, reflecting a recovery in demand following the relaxation of restrictions on activities, which had
been imposed due to the COVID-19 pandemic, and the implementation of sales price revisions in response
to rising wheat market prices and raw materials prices. In terms of profit, despite an increase in shipments
due to a recovery in demand, raw materials prices and energy costs rose more than expected, and strategic
costs for sales expansion increased. As a result, operating income decreased by 0.7% to ¥5,829 million,
ordinary income decreased by 2.0% to ¥7,211 million, and profit attributable to owners of parent decreased
by 5.2% to ¥4,963 million.
The performance of individual business segments was as follows.
1) Flour Milling(Millions of yen)First six months of
Fiscal 2022

First six months of
Fiscal 2023

Difference

ChangeNet sales

46,21056,1499,939

121.5%

Operating income

2,811

3,425

614

121.9%

2

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023

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. We strove to strengthen initiatives in partnership with customers, and enhance sales
capabilities and brand power, and promoted sales activities, so as not to miss any opportunity during
the recovery in the aftermath of the COVID-19 pandemic.
As a result, in the Flour Milling business, sales of wheat flour and sales of wheat bran, a by-product,
were higher than the levels for the same period of the previous year, mainly because of the revision ofwheat flour sales prices and the recovery in demand.
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.
As a result, net sales for the Flour Milling segment increased by 21.5% year on year to ¥56,149
million, and operating income increased by 21.9% to ¥3,425 million.
2) Food(Millions of yen)First six months of
Fiscal 2022

First six months of
Fiscal 2023

Difference

ChangeNet sales

93,002

100,364

7,362

107.9%

Operating income

2,766

2,041

(725)

73.8%

In the professional-use category, demand showed a tendency to recover owing to the relaxation of
the restrictions on activities and in reaction to the fact that the government requested large commercial
facilities, restaurants, etc. to shorten opening hours in the previous year, and as a result, sales of productsin this category were higher than the level for the same period of the previous year.
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 same period of the previous year, owing to price revisions in January and February
2022 in line with increases in raw materials prices and other costs.
In the frozen foods category, in addition to strong shipments of commercial-use frozen foodsreflecting the recovery in demand from the restaurant sector, demand for home-use frozen foods, suchas the One Plate Meal series of complete meals consisting of a main dish and staples and the Imadoki
Gohan series of rice dishes, was brisk. In addition, the revision of prices of home-use frozen foods in
February 2022 also contributed to higher sales. As a result, sales of products in this category were higher
than the level for the same period of the previous year.
In the ready-made meals business, sales were higher than the level for the same period of the previous
year because demand is recovering in line with the relaxation of the restrictions on activities.
As a result, net sales of the Food segment increased by 7.9% year on year to ¥100,364 million, while
operating income decreased by 26.2% to ¥2,041 million.
3) Other(Millions of yen)First six months of
Fiscal 2022

First six months of
Fiscal 2023

Difference

ChangeNet sales

18,323

19,975

1,651

109.0%

Operating income

283

333

49

117.5%

Sales of the pet food business were higher than the level for the same period of the previous year
because of price revision and an increase in shipped volume of products whose unit prices are high.
3

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023

Sales of the engineering business were lower than the level for the same period of the previous year,
owing to a dip following the increase in inquiries for large projects in the previous year.
As a result, net sales for the Other segment increased by 9.0% year on year to ¥19,975 million, andoperating income increased by 17.5% to ¥333 million.
(2) Overview of financial position
1) Assets, liabilities and net assets(Millions of yen)

As of March 31, 2022

As of September 30, 2022

Difference

Current assets

130,768

135,384

4,615

Non-current assets

195,063

195,563

500

37

32

(4)

325,869

330,980

5,111

Current liabilities

74,84275,340497

Non-current liabilities

72,32871,255(1,072)

Total liabilities

147,171

146,596(575)

Total net assets

178,697

184,384

5,686

Total liabilities and net assets

325,869

330,980

5,111

Deferred assets
Total assets

Total assets at the end of the first half of fiscal 2023 increased by ¥5,111 million from the previous
fiscal year end (March 31, 2022) to ¥330,980 million. This was mainly because raw materials andsupplies and merchandise and finished goods increased by ¥7,054 million and ¥2,422 million,
respectively, and cash and deposits and property, plant and equipment decreased by ¥3,137 million and¥1,194 million, respectively.
Total liabilities decreased by ¥575 million from the previous fiscal year end to ¥146,596 million.
This was mainly because notes and accounts payable - trade increased by ¥1,585 million and loans
payable decreased by ¥2,490 million.
Net assets increased by ¥5,686 million from the previous fiscal year end to ¥184,384 million. Thiswas mainly attributable to increases of ¥3,405 million in retained earnings and ¥1,519 million in foreign
currency translation adjustment and decreases of ¥1,629 million in capital surplus and ¥1,912 million
in treasury shares.
2) Cash flows(Millions of yen)First six months of
Fiscal 2022

First six months of
Fiscal 2023

Difference

Net cash provided by (used in) operating
activities

3,258

3,620

362

Net cash provided by (used in) investing
activities(4,373)(2,730)

1,642

Net cash provided by (used in) financing
activities(467)(4,869)(4,401)

Effect of exchange rate changes on cash
and cash equivalents

119

520

401

Net increase (decrease) in cash and cash
equivalents(1,463)(3,459)(1,995)Decrease in cash and cash equivalents
resulting from exclusion of subsidiaries
from consolidation(1,908)–

1,908

Cash and cash equivalents at end of period

31,93627,756(4,180)4

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023

The balance of cash and cash equivalents at the end of the first half of fiscal 2023 stood at ¥27,756
million, a decrease of ¥3,459 million compared with the end of the previous fiscal year. The conditionsof cash flows were as follows:(Operating activities)
Net cash provided by operating activities amounted to ¥3,620 million compared with ¥3,258 million
for the same period of the previous year. This mainly reflected ¥7,200 million for profit before income
taxes, ¥4,876 million for depreciation, ¥1,319 million for increase in notes and accounts payable - tradeand ¥9,458 million for increase in inventories.
(Investing activities)
Net cash used in investing activities amounted to ¥2,730 million compared with ¥4,373 million forthe same period of the previous year. The main factors were proceeds from sales of investment securities
amounting to ¥1,333 million, purchase of investment securities amounting to ¥1,054 million andpurchase of fixed assets amounting to ¥3,120 million.
(Financing activities)
Net cash used in financing activities amounted to ¥4,869 million compared with ¥467 million for thesame period of the previous year. The main factors were repayments of loans payable amounting to¥2,850 million and cash dividends paid amounting to ¥1,539 million.
(3) Information on forecast of the consolidated financial results
The outlook for the Japanese economy is expected to remain extremely challenging, as soaring prices ofraw materials and energy costs caused by the Russo-Ukraine situation, the rapid depreciation of the yen,extreme weather conditions worldwide, and other factors are becoming the norm while changes in
consumption behavior in response to the COVID-19 pandemic are beginning to return to normal.
In these circumstances, under the management philosophy of “contributing to the realization of asustainable society by pursuing the well-being (happiness, health, and smiles) of people,” the Group aims
to achieve growth to the scale of net sales of ¥500 billion and operating income of ¥25 billion as envisaged
in our long-term vision by strengthening the revenue base while building up sales through organic growth,
as well as enhancing inorganic growth. As a milestone on the path toward realization of our long-term
vision, we aim to achieve ¥400 billion in net sales and ¥15 billion in operating income by fiscal 2027. To
this end, we are further fleshing out the business strategy based on the management philosophy. At thesame time, we are strengthening the foundation of existing businesses and increasing production capacity
to respond to diverse lifestyles and continuing vigorous investment of management resources in growthareas while leveraging the Group’s strengths. Furthermore, as a resilient company that practices ESG
management, we are making a Group-wide effort to realize a “better society,” together with our partners inJapan and overseas.
The consolidated business results for the first half of the fiscal year ending March 31, 2023, exceeded
the forecast, because of a recovery in demand surpassing expectations and other factors. With regard tobusiness results for the third quarter of the current fiscal year onward, however, geopolitical risks and theimpact of high raw materials prices and energy costs caused by the rapid depreciation of the yen and otherfactors are expected to continue for the time being. Therefore, the forecasts of consolidated business results
for the full year of fiscal 2023 announced on May 13, 2022, are unchanged. If changes in circumstances
necessitate a revision of the forecasts of consolidated business results, we will promptly announce such
revision.
With regard to dividends, our target payout ratio is 30% or more and the Company plans to pay total
cash dividends of ¥38 per share for the full year ending March 31, 2023, unchanged from the forecast.

5

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023

2. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Millions of yen)

FY2022(As of March 31, 2022)

First half of FY2023(As of September 30,
2022)

AssetsCurrent assets
Cash and deposits

34,06330,926

Notes and accounts receivable - trade andcontract assets

50,46650,046Merchandise and finished goods

18,48420,90557

204

Raw materials and supplies

21,34828,402Other current assets

6,407

4,958

(59)

(60)

130,768

135,384

Buildings and structures, net

48,582

47,843

Machinery, equipment and vehicles, net

22,492

22,033Land
Construction in progress

41,453471

41,111
734

Other, net

2,611

2,696

115,611

114,417

Goodwill
Other

1,404
1,124

1,288
1,059

Total intangible assets

2,529

2,347

Investment securities

69,00170,780

Other assets
Allowance for doubtful accounts

8,307
(385)

8,386
(368)

Total investments and other assets

76,922

78,798

195,063

195,56337

32

325,869

330,980

Work in process

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Deferred assets
Total assets

6

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

FY2022(As of March 31, 2022)

First half of FY2023(As of September 30,
2022)

Liabilities
Current liabilities
Notes and accounts payable - trade33,91035,495

Short-term loans payable

19,53018,871

Current portion of bonds
Income taxes payable

91
1,926

86
1,902

Provision for bonuses

705

680

Other current liabilities

18,67818,304

Total current liabilities

74,84275,340349

306

25,05625,047

23,684

21,852

3,810

3,806

462

387

Other non-current liabilities

18,966

19,856

Total non-current liabilities

72,32871,255

147,171

146,596

Capital stock

12,24012,240Capital surplus
Retained earnings

11,307
121,817

9,678
125,222

Treasury shares(3,198)(1,286)

Total shareholders’ equity

142,166

145,854

30,40931,709Deferred gain (loss) on hedges

88

62

Foreign currency translation adjustment

981

2,500

Retirement benefits liability adjustments

475

420

31,954

34,693

Subscription rights to shares

195

193

Non-controlling interests

4,381

3,642

178,697

184,384

325,869

330,980

Non-current liabilities
Bonds payable
Convertible bond-type bonds with
subscription rights to shares
Long-term loans payable
Retirement benefit liability
Accrued retirement benefits for directors

Total liabilities
Net assets
Shareholders’ equity

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

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

7

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Millions of yen)First half of FY2022(From April 1, 2021
to September 30, 2021)

First half of FY2023(From April 1, 2022
to September 30, 2022)

Net sales

157,535

176,488

Cost of sales

120,258

137,551

Gross profit

37,27638,936

Selling, general and administrative expenses

31,407

33,107

Operating income

5,869

5,829

Interest income

31

33

Dividend income

793

1,033

Other

904

869

1,729

1,936

Interest expenses
Share exchange related expenses

102
–

103
222

Other

133

228

Total non-operating expenses

236

554

7,362

7,211

57

9

Gain on sales of investment securities

1,031

118

Total extraordinary income

1,088

127

39

53

Non-operating income

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of fixed assets

Extraordinary expenses
Loss on sales and disposal of fixed assets
Loss on sale of shares of subsidiaries andassociates
Loss of valuation of investment securities
System failure response costs

24

–

1
761

81
–

Other

10

3

Total extraordinary expenses

838

138

Profit before income taxes

7,612

7,200

Income taxes - current

2,242

1,901

Income taxes - deferred

166

316

Total income taxes

2,409

2,218

Profit

5,203

4,982

(31)

19

5,235

4,963

Profit (loss) attributable to non-controllinginterests
Profit attributable to owners of parent

8

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023(Quarterly consolidated statements of comprehensive income)(Millions of yen)First half of FY2022(From April 1, 2021
to September 30, 2021)
ProfitFirst half of FY2023(From April 1, 2022
to September 30, 2022)

5,203

4,982

Unrealized holding gain (loss) on securities

592

1,293

Deferred gain (loss) on hedges

(17)

(26)

Foreign currency translation adjustment

287

1,508

Retirement benefits liability adjustments

6

(48)

Share of other comprehensive income ofentities accounted for using equity method

17

16

Total other comprehensive income

886

2,743

6,090

7,725

6,129

7,698

(39)

27

Other comprehensive income

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable toowners of parent
Comprehensive income (loss) attributable tonon-controlling interests

9

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023(3) Quarterly consolidated statements of cash flows(Millions of yen)First half of FY2022(From April 1, 2021
to September 30, 2021)

First half of FY2023(From April 1, 2022
to September 30, 2022)

Profit before income taxes

7,612

7,200

Depreciation

4,827

4,876

761

–

0

(18)

Interest and dividend income(824)(1,066)

Interest expenses

102

103

(1,029)

(127)

1

81

Equity in (earnings) losses of unconsolidated
subsidiaries and affiliates

(101)

(188)

Foreign exchange losses (gains)

(109)

(154)

Loss (gain) on sales of fixed assets

(57)

(0)

Loss on disposal of fixed assets

Operating activities

System failure response costs
Increase (decrease) in allowance for doubtful
accounts

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

45

44

Decrease (increase) in notes and accounts receivable- trade(7,049)673

Decrease (increase) in inventories(5,804)(9,458)

Increase (decrease) in notes and accounts payable trade

6,727

1,319

Other, net

61

1,268

Subtotal

5,166

4,553

Interest and dividend income received

827

1,086

Interest expenses paid

(102)

(95)

Income taxes paid

(2,632)(1,922)

Net cash provided by (used in) operating activities

3,258

3,620

Decrease (increase) in time deposits

(682)

(1)

Purchase of investment securities(52)(1,054)

1,644

1,333

(45)

–

–

(295)

Investing activities

Proceeds from sales of investment securities
Payments for sale of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of fixed assets(5,343)(3,120)

Proceeds from sales of fixed assets

75

405

Payments of loans receivable(6)–

Collection of loans receivable

65

Decrease (increase) in other investments

31

(2)

(4,373)(2,730)Net cash provided by (used in) investing activities

10

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023(Millions of yen)First half of FY2022(From April 1, 2021
to September 30, 2021)

First half of FY2023(From April 1, 2022
to September 30, 2022)(372)(1,761)

Financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

2,797

360

Repayments of long-term loans payable(1,172)(1,089)

Redemption of bonds

(48)

(48)

Purchase of treasury shares

(0)

(1)

(130)

(152)

(1,460)(1,539)Dividends paid to non-controlling interests

(32)

(19)

Other, net

(48)

(619)

Net cash provided by (used in) financing activities(467)(4,869)Effect of exchange rate changes on cash and cash
equivalents

119

520

Net increase (decrease) in cash and cash equivalents(1,463)(3,459)Cash and cash equivalents at beginning of period

35,30831,215Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation(1,908)–Cash and cash equivalents at end of period

31,93627,756

Repayments of finance lease obligations
Cash dividends paid

11

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023(4) Notes on quarterly consolidated financial information(Notes on going concern assumption)
Not applicable.
(Notes to significant changes in the amount of shareholders’ equity)
Not applicable.
(Changes in accounting policies)(Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement)
Effective from the beginning of the first quarter of the fiscal year ending March 31, 2023, the Company
applies the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Implementation Guidance No. 31, June 17, 2021) and will apply the new accounting policy stipulated by
the Implementation Guidance on Accounting Standard for Fair Value Measurement from now on inaccordance with the transitional treatment stipulated in Paragraph 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement. There is no impact on quarterly consolidated financial
statements.

12

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Half of FY2023(Segment information, etc.)[Segment information]
I. First Half of FY2022 (From April 1, 2021 to September 30, 2021)
1. Information on sales and income (loss) by reportable segment and composition of revenue(Millions of yen)
Reportable segments

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

Other

Adjustments

Amounts
recorded inquarterly
consolidated
financialstatements(Note 3)

Flour
Milling

Food

Total

(Note 1)

Total

46,21092,978139,189

17,846

157,035—

157,035—
46,21023
93,002

23
139,212477
18,323500
157,535——500
157,535

946

298

1,245

1,379

2,625

(2,625)—47,157
2,811

93,3002,766

140,457
5,577

19,703283

160,161
5,861(2,625)
7

157,535
5,869(Note 2)

Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including pet food, health food, engineering andreal estate leasing.
2. Segment income adjustment of ¥7 million includes elimination of inter-segment transactions and corporate expenses.
3. Segment income is adjusted to reconcile total segment income to operating income in the quarterly consolidated financial statements.

2. Information about impairment loss on fixed assets and about goodwill etc. by reportable segment
Not applicable.
II. First Half of FY2023 (From April 1, 2022 to September 30, 2022)
1. Information on sales and income (loss) by reportable segment and composition of revenue(Millions of yen)
Reportable segments

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

Other

Adjustments

Amounts
recorded inquarterly
consolidated
financialstatements(Note 3)

Flour
Milling

Food

Total

(Note 1)

Total

56,149100,341

156,490

19,496

175,986—

175,986—
56,14923
100,36423
156,513478
19,975

501
176,488——

501
176,488

1,248

344

1,593

998

2,591

(2,591)—

57,398
3,425

100,708
2,041

158,106
5,466

20,973333

179,080
5,800(2,591)
29

176,4885,829(Note 2)

Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including pet food, health food, engineering andreal estate leasing.
2. Segment income adjustment of ¥29 million includes elimination of inter-segment transactions and corporate expenses.
3. Segment income is adjusted to reconcile total segment income to operating income in the quarterly consolidated financial statements.

2. Information about impairment loss on fixed assets and about goodwill etc. by reportable segment
Not applicable.

13