NH Foods : Business Results and Progress in the New Medium-Term Management Plan Part 5

Business Results and Progress in the New Medium-Term Management Plan Part 5 May 11, 2017 NH Foods Ltd. President and Representative Director Juichi Suezawa

1. Business Results Overview for FY2017/3

2. Full Year Outlook for FY2018/3

3. Progress in the New Medium-Term Management Plan Part 5 (FY2016/3-FY2018/3)

2

Although revenues fell, we marked a record high in operating income.

Operating Income

Net Sales

12,500

（¥ billion） （¥ billion）

1,250.0

12,000

1,200.0

1,229.3

1,202.3

500

50.0

400

40.0

49.2

53.8

11,500

1,150.0

Year-on-year variance

-27.0

300

30.0

Year-on-year variance +4.6

11,000

1,100.0

200

20.0

10,500

1,050.0

100

10.0

10,000

1,000.0

2016年3月期

2017年3月期

2016年3月期

2017年3月期

0

0.0

FY2016/3 FY2017/3 FY2016/3 FY2017/3

※Due to rounding, item tallies in each division may not match totals. 3

Variation Factors for the Operation Income Forecasts

(¥ billion)

Business Division	Forecasts	Results	Variance	Variation Factors
Processed Foods Business	8.3	7.9	(0.4)	Operating income fell below the forecast due to an increase in one-time expenses for optimization of the manufacturing structure.
Fresh Meats Business	41.8	43.9	2.1	Operating income exceeded forecast due to strong market prices mainly for chicken.
Affiliated Business	3.8	3.7	(0.1)	Operating income was in line with the forecast due to an improved profit ratio for marine products and sales growth in dairy products.
Overseas Business	(0.6)	(1.3)	(0.7)	Operating income was below the forecast due to the high levels of cattle livestock prices in Australia operations.
Eliminations, adjustments and others	(0.3)	(0.5)	(0.2)
Total	53.0	53.8	0.8	Operating income increased driven by the fresh meats business.

• Forecasts are those that were revised as of the third quarter.

• Excluding discontinued operations.

• Due to rounding, item tallies in each division may not match totals. 4