Consolidated Financial Results for the Third Quarter of FY2023 [J-GAAP]
February 3, 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
Filing date of quarterly financial report:
February 6, 2023
Start of cash dividend payments:—
Supplementary quarterly materials prepared:
None
Quarterly results information meeting held:
None*Amounts less than one million yen have been rounded down.

1. Consolidated financial results for the third quarter of FY2023 (From April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)(Millions of yen, percentage figures show the rates of change from the same period of the previous year.)

Net Sales

Operating Income

3Q of FY2023
274,681
13.6%
3Q of FY2022
241,779
12.0%(Note) Comprehensive income:3Q of FY2023:
3Q of FY2022:

Ordinary Income

9,564
10.1%
11,865
8,686
12.6%
11,376¥13,779 million (61.5%)¥8,529 million (9.7%)

4.3%
18.3%

Profit Attributable to
Owners of Parent
8,084
5.9%
7,634
22.8%

Fully Diluted Profit
per Share (Yen)Profit per Share (Yen)
3Q of FY2023

104.2791.03

3Q of FY2022

99.54

86.79

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

3Q of FY2023

338,832

188,970

54.6%

FY2022

325,869

178,697

53.4%

3Q of FY2023:
FY2022:¥185,064 million¥174,120 million(Reference) Equity capital:

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 change 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(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):

3Q of FY2023

78,824,009

shares FY2022

78,824,009

shares3Q of FY2023

860,414shares FY2022

2,021,404

shares3Q of FY2023

77,536,670

shares 3Q of FY2022

76,696,200

shares* 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 5 for information on preconditions underlying the above outlook and other related
information.

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter 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) Notes on quarterly consolidated financial information ....................................................................... 10(Notes on going concern assumption) ................................................................................................. 10(Notes to significant changes in the amount of shareholders’ equity) ................................................. 10(Changes in accounting policies) ......................................................................................................... 10(Segment information, etc.) .................................................................................................................. 111

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter of FY2023

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

First nine months of
Fiscal 2023

Difference

ChangeNet sales

241,779

274,681

32,902113.6%

Operating income

8,686

9,564

878

110.1%

Ordinary income

11,376

11,865488

104.3%

Profit attributableto owners of parent

7,634

8,084

450

105.9%

During the first nine months of the fiscal year ending March 31, 2023, the Japanese economy washeading toward normalization through efforts to vitalize economic activity while controlling the spread of
COVID-19. On the other hand, manufacturing and transportation costs remain high owing to soaring raw
materials prices and energy costs reflecting geopolitical risks, the rapid depreciation of the yen, and otherfactors. Rising prices are resulting in heightened concerns of an economic recession, and the impact on thebusiness environment continues to be unpredictable.
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-focused value.
We are reinforcing existing businesses and vigorously investing in promising fields with the aim ofachieving growth to the scale of net sales of ¥500 billion and operating income of ¥25 billion as envisaged
in our long-term vision. In addition, by promoting ESG management for sustainable growth, with the aimof achieving ¥400 billion in net sales and ¥15 billion in operating income by fiscal 2027 as a milestone on
the path toward realization of our long-term vision, the Group is working as one, further fleshing out thebusiness strategy.
Consolidated net sales for the first nine months of fiscal 2023 increased by 13.6% year on year to¥274,681 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 mainly in the restaurant
sector, 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 10.1% to ¥9,564 million, ordinary income increased by 4.3% to ¥11,865 million, andprofit attributable to owners of parent increased by 5.9% to ¥8,084 million, reflecting an increase in
shipments due to a recovery in demand mainly in the restaurant sector and cost reductions due to improved
productivity.
The performance of individual business segments was as follows.

2

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter of FY2023

1) Flour Milling(Millions of yen)First nine months of
Fiscal 2022

First nine months of
Fiscal 2023

Difference

ChangeNet sales

72,247

87,972

15,725121.8%

Operating income

4,494

5,889

1,394

131.0%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 were higher than the levels for the same period of theprevious year, mainly because of the wheat flour price revision and a robust trend of sales prices ofwheat 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, since the Japanese government kept the sales prices from
October 2022 unchanged, we kept the prices of wheat flour products for professional use unchanged.
As a result, net sales for the Flour Milling segment increased by 21.8% year on year to ¥87,972
million, and operating income increased by 31.0% to ¥5,889 million.
2) Food(Millions of yen)First nine months of
Fiscal 2022

First nine months of
Fiscal 2023

Difference

ChangeNet sales

140,924

154,949

14,025110.0%

Operating income

3,525

2,857

(667)

81.1%

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 July and August 2022 inline 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 in a tray and theTrendy Meal series of rice dishes, was brisk. In addition, the revision of prices of home-use frozen foodsin September 2022 also contributed to higher sales. As a result, sales of products in this category werehigher 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 on a recovery trend in line with the relaxation of the restrictions on activities.
As a result, net sales of the Food segment increased by 10.0% year on year to ¥154,949 million, while
operating income decreased by 18.9% to ¥2,857 million.

3

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter of FY2023

3) Other(Millions of yen)First nine months of
Fiscal 2022

First nine months of
Fiscal 2023

Difference

ChangeNet sales

28,60731,7593,152111.0%

Operating income

676

782

105

115.7%

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.
Sales of the restaurant business were higher than the level for the same period of the previous year,
reflecting the recovery of demand in line with the relaxation of the restrictions on activities and pricerevisions.
As a result, net sales for the Other segment increased by 11.0% year on year to ¥31,759 million, andoperating income increased by 15.7% to ¥782 million.
(2) Overview of financial position(Millions of yen)

As of March 31, 2022

As of December 31, 2022

Difference

Current assets

130,768

140,124

9,356

Non-current assets

195,063

198,678

3,615

37

29

(8)

325,869

338,832

12,963Current liabilities

74,842

77,2192,377

Non-current liabilities

72,32872,641

313

Total liabilities

147,171

149,861

2,690

Total net assets

178,697

188,970

10,272

Total liabilities and net assets

325,869

338,832

12,963

Deferred assets
Total assets

Total assets at the end of the first nine months of fiscal 2023 increased by ¥12,963 million from theprevious fiscal year end (March 31, 2022) to ¥338,832 million. This was mainly because notes andaccounts receivable - trade and contract assets, investment securities, raw materials and supplies, andmerchandise and finished goods increased by ¥10,689 million, ¥5,759 million, ¥4,399 million and¥2,762 million, respectively, and cash and deposits, other current assets, and property, plant andequipment decreased by ¥6,468 million, ¥2,219 million and ¥1,958 million, respectively.
Total liabilities increased by ¥2,690 million from the previous fiscal year end to ¥149,861 million.
This was mainly because other current liabilities increased by ¥5,872 million and loans payable
decreased by ¥2,829 million.
Net assets increased by ¥10,272 million from the previous fiscal year end to ¥188,970 million. Thiswas mainly attributable to increases of ¥5,042 million in retained earnings and ¥4,194 million in
unrealized holding gain on securities.

4

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter of FY2023(3) Information on forecast of the consolidated financial results
The Japanese government is expected to seek the recovery of socioeconomic activities while graduallycurbing the spread of COVID-19. However, the outlook for the Japanese economy is expected to remain
uncertain for the time being owing to geopolitical risks and increases in prices of raw materials and energy
caused by geopolitical risks, exchange rate fluctuations, and other factors.
In these circumstances, based on the management philosophy of “contributing to the realization of asustainable society by pursuing the well-being (happiness, health, and smiles) of people,” the Group isfurther fleshing out the business strategy. At the same 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 growth areas while leveraging the Group’s strengths.
In view of the difficulty of predicting the impact of the above-mentioned uncertainties on the Group’sbusiness environment, the forecasts of consolidated business results for the full year of fiscal 2023
announced on May 13, 2022, are unchanged.
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 Third Quarter of FY2023

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

FY2022(As of March 31, 2022)

Third Quarter of FY2023(As of December 31,
2022)

AssetsCurrent assets
Cash and deposits

34,063

27,595

Notes and accounts receivable - trade andcontract assets

50,466

61,155Merchandise and finished goods

18,484

21,24757

260

Raw materials and supplies

21,34825,748Other current assets

6,407

4,187

(59)

(70)

130,768

140,124

Buildings and structures, net

48,58247,456

Machinery, equipment and vehicles, net

22,492

21,668Land
Construction in progress

41,453471

41,092
732

Other, net

2,611

2,703

115,611

113,652

Goodwill
Other

1,404
1,124

1,232
1,027

Total intangible assets

2,529

2,259

Investment securities

69,001

74,760

Other assets
Allowance for doubtful accounts

8,307
(385)

8,361
(355)

Total investments and other assets

76,922

82,765

195,063

198,67837

29

325,869

338,832

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 Third Quarter of FY2023(Millions of yen)

FY2022(As of March 31, 2022)

Third Quarter of FY2023(As of December 31,
2022)

Liabilities
Current liabilities
Notes and accounts payable - trade33,91032,567

Short-term loans payable

19,53018,668Current portion of bonds
Income taxes payable

91
1,926

86
1,057

Provision for bonuses

705

289

Other current liabilities

18,67824,551

Total current liabilities

74,842

77,219349

306

25,05625,042

23,684

21,716

3,810

3,835

462

407

Other non-current liabilities

18,966

21,333

Total non-current liabilities

72,32872,641

147,171

149,861

Capital stock

12,24012,240Capital surplus
Retained earnings

11,307
121,817

9,693
126,859

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

Total shareholders’ equity

142,166

147,50730,40934,604

Deferred gain (loss) on hedges

88

(98)

Foreign currency translation adjustment

981

2,655

Retirement benefits liability adjustment

475

395

31,95437,557

Subscription rights to shares

195

209

Non-controlling interests

4,381

3,696

178,697

188,970

325,869

338,832

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 on securities

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

7

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter of FY2023(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Millions of yen)

Third Quarter of FY2022(From April 1, 2021
to December 31, 2021)
241,779
185,100
56,67847,992
8,686

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share exchange related expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary expenses
Loss on sale and disposal of fixed assets
Loss on sale of shares of subsidiaries andassociates
Loss of valuation of investment securities
Impairment loss
System failure response costs
Other
Total extraordinary expenses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controllinginterests
Profit attributable to owners of parent

8

Third Quarter of FY2023(From April 1, 2022
to December 31, 2022)
274,681214,250
60,43050,866
9,564

48
1,507

51
1,891

197

258

1,281
3,034

864
3,066

147

195
343
11,376

152
222
390
765
11,865

57
1,051
1,108

9
129
139

64

134

24



1
31
1,174
17
1,314
11,171
2,951
617
3,568
7,603

84


32
250
11,753
2,987
597
3,584
8,168

(31)

84

7,634

8,084

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter of FY2023(Quarterly consolidated statements of comprehensive income)(Millions of yen)

Third Quarter of FY2022(From April 1, 2021
to December 31, 2021)
ProfitThird Quarter of FY2023(From April 1, 2022
to December 31, 2022)

7,603

8,168

Unrealized holding gain on securities

795

4,195

Deferred gain (loss) on hedges

(18)

(187)

Foreign currency translation adjustment

115

1,664

Retirement benefits liability adjustment

9

(73)

Share of other comprehensive income ofentities accounted for using equity method

24

13

Total other comprehensive income

926

5,611

8,529

13,7798,556

13,683(26)

96

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 Third Quarter of FY2023(3) 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.

10

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter of FY2023(Segment information, etc.)[Segment information]
I. Third quarter of FY2022 (From April 1, 2021 to December 31, 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
Notes: 1.
2.
3.

Other

Adjustments

Amounts
recorded inquarterly
consolidated
financialstatements(Note 3)

Flour
Milling

Food

Total

(Note 1)

Total

72,247140,889

213,136

27,891

241,028—

241,028—
72,24734
140,924

34
213,171715
28,607750
241,779——750
241,779

1,535

475

2,011

1,736

3,747

(3,747)—73,783
4,494

141,399
3,525

215,182
8,019

30,344
676

245,527
8,696(3,747)(10)

241,779
8,686(Note 2)The “Other” column indicates businesses not included in the reportable segments, including pet food, health food,engineering, restaurant and real estate leasing.
Segment income adjustment of ¥(10) million includes elimination of inter-segment transactions and corporate expenses.
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(Material impairment loss pertaining to fixed assets)
The other operations recorded an impairment loss on fixed assets amounting to ¥31 million.
II. Third quarter of FY2023 (From April 1, 2022 to December 31, 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
Notes: 1.
2.
3.

Other

Adjustments

Amounts
recorded inquarterly
consolidated
financialstatements(Note 3)

Flour
Milling

Food

Total

(Note 1)

Total

87,972

154,914242,887

31,041

273,929—

273,929—
87,972

34
154,94934
242,921718
31,759752
274,681——752
274,681

2,036

520

2,557

1,469

4,027

(4,027)—90,0095,889

155,470
2,857

245,479
8,747

33,229782

278,709
9,529(4,027)
34

274,6819,564(Note 2)The “Other” column indicates businesses not included in the reportable segments, including pet food, health food,engineering, restaurant, and real estate leasing.
Segment income adjustment of ¥34 million includes elimination of inter-segment transactions and corporate expenses.
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.

11