Nisshin Seifun : Supplementary Materials Fiscal Year Ended March 31, 2022

Disclaimer: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.

Supplementary Materials

Fiscal Year Ended March 31, 2022

1. Consolidated Performance Highlights………………… P. 1-2

1. Consolidated Statements of Income…………………… P. 3-7
2. 1. Consolidated Statements of Income
   2. Net Sales and Operating Profit by Segment

III. Consolidated Balance Sheets ………………… P. 8-9

IV.	Consolidated Statements of Cash Flows………………… P. 10

V. Consolidated ROE

……………………… P. 11

May 13, 2022

Nisshin Seifun Group Inc.

The statements contained in this document are based on various assumptions and do not constitute any guarantee or definite promise that projections of future performance or related business policies will actually be realized.

1. Consolidated Performance Highlights

Net sales

(Millions of yen)

* Line graph is overseas sales ratio

900,000					27.3	29.9
800,000			23.3
		22.9
700,000
17.8	18.3
600,000
500,000
400,000			712,180	679,495	679,736	760,000
300,000	540,094	565,343
200,000
100,000
0	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023
						Forecast

Operating profit (%)

(%)	(Millions of yen)						(%)
35.0	40,000							6.0
30.0	35,000	5.0	4.8	4.1		4.3
4.0	3.9
	30,000			5.0
25.0
20.0	25,000							4.0
15.0	20,000							3.0
15,000			28,852		29,430	30,000
10.0	27,200	26,916	27,197	2.0
10,000
5.0	5,000							1.0
0.0	0	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	0.0
							Forecast

Ordinary profit (%)

(Millions of yen)						(%)
45,000
						7.0
40,000	5.9	5.7
		4.8
35,000		4.4	4.4		6.0
		4.1
30,000							5.0
25,000							4.0
20,000							3.0
15,000	31,800	32,062	31,434	29,886	32,626	31,000
2.0
10,000
5,000							1.0
0							0.0

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Forecast

	Profit attributable to	(%)
(Millions of yen)	owners of parent (%)

35,000
30,000	4.0	3.9				5.0
25,000			3.1	2.8		4.0
				2.6	2.4
20,000
					3.0
15,000						2.0
10,000	21,339	22,268	22,407
19,011	17,509	18,500
5,000						1.0
0						0.0
	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023
						Forecast

[Performance Trends]

Q202103 Q202103 Q202103 Q202103 Q202103

(Millions of yen)

	FY2018	FY2019	FY2020	FY2021	FY2022	YoY	Change
	Change	(%)
Net sales *1	540,094	565,343	712,180	679,495	679,736	241	100.0%
Overseas sales	96,290	103,739	166,188	155,626	185,890	30,264	119.4%
(%)	17.8%	18.3%	23.3%	22.9%	27.3%	4.4%
Operating profit *1	27,200	26,916	28,852	27,197	29,430	2,233	108.2%
(%)	5.0%	4.8%	4.1%	4.0%	4.3%	0.3%
Ordinary profit *1	31,800	32,062	31,434	29,886	32,626	2,739	109.2%
(%)	5.9%	5.7%	4.4%	4.4%	4.8%	0.4%
Profit attributable to owners of parent	21,339	22,268	22,407	19,011	17,509	(1,501)	92.1%
*1
(%)	4.0%	3.9%	3.1%	2.8%	2.6%	(0.2)%

FY2023

Forecast

760,000

227,500

29.9%

30,000

3.9%

31,000

4.1%

18,500

2.4%

Capital expenditures	21,484	18,719	21,834	16,405	18,150	1,745	110.6%		22,000
(construction base)
Depreciation and amortization	15,509	14,951	21,235	22,271	23,054	782	103.5%	24,000
Number of employees	6,545	6,760	8,962	8,951	8,918	(33)	99.6%	-
(consolidated) (Persons)
(Reference)
Operating profit before amortization of	29,440	29,172	37,241	35,394	38,258	2,863	108.1%	39,041
goodwill, others *1
Amortization of goodwill, others *2	2,239	2,256	8,388	8,197	8,828	630	107.7%		9,041

*1 The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ No. 29) from the start of the fiscal year (April 1, 2021).

*2 "Amortization of goodwill, others" refers to amortization of goodwill and intangible assets (customer-related assets, etc.)

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[Balance Sheet Trends]					(Millions of yen)
	As of	As of	As of	As of	As of	vs. as of
	March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022	March 31, 2021
Current assets	260,751	268,170	238,980	238,674	280,527	41,852
Property, plant and equipment, and	163,352	166,780	277,204	288,804	288,132	(672)
intangible assets
Investments and other assets	167,408	159,802	150,030	159,935	154,414	(5,521)
Total assets	591,512	594,754	666,215	687,415	723,073	35,658
Current liabilities	114,189	114,806	131,058	108,740	129,158	20,417
Non-current liabilities	63,528	61,098	126,114	133,900	133,272	(627)
Equity capital	399,278	403,937	394,995	433,089	449,174	16,085
Equity ratio (%)	67.5%	67.9%	59.3%	63.0%	62.1%	(0.9)%
Subscription rights to shares	189	167	137	116	95	(20)
Non-controlling interests	14,327	14,743	13,908	11,569	11,373	(196)
Total liabilities and net assets	591,512	594,754	666,215	687,415	723,073	35,658

[Shareholders' Equity and Dividends]

FY2018	FY2019	FY2020	FY2021	FY2022	YoY	FY2023
Change	Forecast

Net assets per share (Yen)*1	1,344.68	1,359.49	1,328.71	1,456.37	1,510.35	53.98	-
Earnings per share (Yen)*1	71.47	74.98	75.40	63.95	58.88	(5.07)	62.21
Fully diluted earnings per share (Yen)*1	71.40	74.90	75.35	63.94	58.88	(5.06)	-
Dividend per share (Yen)	29.00	32.00	34.00	37.00	39.00	2.00		39.00
Total dividends (Millions of yen)	8,617	9,510	10,110	11,005	11,603	597	-
Payout ratio (%)	40.6%	42.7%	45.1%	57.9%	66.2%	8.3%		62.7%

*1 From the year ended March 31, 2018, when calculating earnings per share and net assets per share, Company shares held by The Master Trust Bank of Japan, Ltd. as trust assets for the stock-based remuneration plan are included in the treasury shares (listed under shareholders' equity) excluded from calculation of the number of shares of common stock.

[Share Data (Nisshin Seifun Group Inc.)]

	As of	As of	As of	As of	As of
	March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022
Shares issued and outstanding at end of period	297,013	297,204	297,359	297,456	297,478
(Thousand shares)
Share price at end of period (Yen)	2,109	2,540	1,802	1,850	1,706
Total market value of shares (Millions of yen)	626,400	754,899	535,841	550,293	507,497

[Statements of Cash Flows]					(Millions of yen)
	FY2018	FY2019	FY2020	FY2021	FY2022	YoY
	Change
Net cash provided by (used in) operating activities	42,869	39,873	38,420	49,506	41,833	(7,672)
Net cash provided by (used in) investing activities	(18,067)	(19,184)	(96,844)	(17,105)	(15,517)	1,588
Net cash provided by (used in) financing activities	(18,593)	(10,567)	8,337	(31,264)	(17,850)	13,414
Effect of exchange rate change on cash and cash	1,415	(202)	(1,451)	1,466	1,110	(356)
equivalents
Cash and cash equivalents at beginning of period	90,837	98,461	107,374	56,550	59,152	2,602
Increase (decrease) in cash and cash equivalents	-	(1,006)	713	-	-	-
resulting from change of fiscal year-end of subsidiaries
Cash and cash equivalents at end of period	98,461	107,374	56,550	59,152	68,728	9,576

(Yen)		Net assets per share (Yen)		(Yen)		Earnings per share (Yen)
1,600					1,510.35	90
1,500				1,456.37		80	71.47	74.98	75.40
		1,359.49
	1,344.68							63.95
1,400		1,328.71			70
									62.21
									58.88
1,300						60
1,200	As of	As of	As of	As of	As of	50	FY2018	FY2019 FY2020 FY2021 FY2022 FY2023
	March 31,	March 31,	March 31,	March 31,	March 31,				Forecast
	2018	2019	2020	2021	2022
						-2-

1. Consolidated Statements of Income

1. Consolidated Statements of Income

(Millions of yen)

FY2021	FY2022	YoY Change	FY2023	YoY Change
Forecast

Net sales	679,495	679,736	241	760,000	80,263
Cost of sales	490,410	531,660	41,250	Effect of application of accounting standard
regarding revenue recognition (-58.4 billion)
Gross profit	189,084	148,075	(41,009)
Selling, general and administrative expenses	161,887	118,645	(43,242)
Selling expenses	87,146	40,060	(47,086)	Effect of application of accounting standard regarding revenue
recognition
Personnel expenses	36,294	37,551	1,257
Non-personnel expenses	38,447	41,033	2,586
Operating profit	27,197	29,430	2,233	30,000	569
Non-operating income	5,797	6,558	760

Interest income	159	157	(2)
Dividend income	2,811	3,003	191
Share of profit of entities accounted for	1,794	2,070	275
using equity method
Rent income	317	300	(16)
Other	713	1,025	312
Non-operating expenses	3,107	3,362	254

Non-operating income	FY2023	YoY
(expenses)	Forecast	Change
Net financial income	50	(196)
Equity in earnings	650	(1,420)
(losses) of affiliates
Other	300	(578)

		Interest expenses	2,782	2,914	131
		Other	324	447	123
Ordinary profit	29,886	32,626	2,739	31,000	(1,626)
Extraordinary income	1,849	1,645	(203)
		Gain on sales of non-current assets	427	－	(427)
		Gain on sales of investment securities	1,421	1,645	223
			1,974	3,499	1,525
		Extraordinary losses
		Loss on retirement of non-current assets	608	722	114
		Impairment loss	977	2,439	1,462	(FY22) New Zealand flour milling business, other
		Business restructuring expenses	388	－	(388)
		Expenses related to change of the trade	－	336	336	(FY22) Nisshin Seifun Welna Inc.
		name
Profit before income taxes	29,762	30,773	1,011
Income taxes - current	10,671	12,654	1,982
Income taxes - deferred	(863)	(642)	221
Total income taxes	9,807	12,011	2,203
Profit	19,954	18,761	(1,192)
Profit attributable to non-controlling interests	943	1,251	308
Profit attributable to owners of parent	19,011	17,509	(1,501)	18,500	990

PrincipalConsolidated Subsidiaries

(Millions of yen)

Company name	Net sales	Ordinary	Profit	Net assets	Total assets
profit
Nisshin Flour Milling Inc.	166,112	7,978	5,686	87,616	192,887
Nisshin Seifun Welna Inc.*	88,546	5,891	4,293	30,563	61,064

*Formerly Nisshin Foods Inc. Trade name changed on January 1, 2022.

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2. Net Sales and Operating Profit by Segment

[FY2022 Performance] [Net Sales by Segment]

					(Millions of yen)
	FY2021	(Composition	FY2022	(Composition	Difference from		YoY
		ratio)		ratio)	previous year		Change
Flour Milling	285,798	42%	313,519	46%	27,720	109.7%
Processed Food	214,710	32%	182,968	27%	(31,741)	85.2%
Prepared Dishes and Other Prepared Foods	142,747	21%	138,384	20%	(4,362)	96.9%
Others	36,240	5%	44,864	7%	8,624	123.8%
Total	679,495	100%	679,736	100%	241	100.0%
Overseas Sales (included in sales data above)			(Millions of yen)		Currency	(Yen)
			Exchange Rates
		FY2022 Difference from	Impact of	YoY
	FY2021	currency				FY2021 FY2022
			previous year	exchange rate	Change
				fluctuations

Flour Milling	134,913	163,598	28,685	11,560	121.3%
Processed Food	16,008	16,901	893	723	105.6%
Prepared Dishes and Other Prepared Foods	-	-	-	-	-
Others	4,705	5,391	685	181	114.6%
Total	155,626	185,890	30,264	12,466	119.4%

USD	105.9	111.7
CAD	79.4	89.0
AUD	74.9	82.6
NZD	70.2	77.8
THB	3.4	3.4

(Analysis of Net Sales Difference from Previous Year)

			(Billions of yen)
			FY2022
			(Difference from
			previous year)
Flour Milling	+27.7	 Domestic wheat flour shipments (up 0.3% YoY)
+0.5
		 Flour price revisions, others accompanying revised wheat prices	+6.9
		 Bran prices	+1.6
		 Overseas sales, others	+34.3
		 Effect of application of new accounting standard (revenue recognition)	(15.6)
Processed Food	(31.7)  Processed Food sales *	(2.4)
		Household-use flour sales	(0.2)
		Prepared mix product sales	+0.1
		Pasta-related sales	(0.2)
		Frozen food sales	(0.3)
		Overseas processed food sales	+3.1
		Other	(4.9)
		 Oriental Yeast sales *	+3.5
		 Nisshin Pharma sales *	(2.4)
	(4.4)	 Effect of application of new accounting standard (revenue recognition)	(30.4)
Prepared Dishes and Other Prepared Foods	 Prepared dishes and other prepared foods sales *	+7.9
Others	+8.6	 Effect of application of new accounting standard (revenue recognition)	(12.3)
 Nisshin Petfood sales	(7.6)
		 NBC Meshtec sales	+1.2
		 Facility construction sales, others (Nisshin Engineering, others) *	+15.1
		 Effect of application of new accounting standard (revenue recognition)	(0.1)
Total	+0.2

* Excluding effect of application of new accounting standard (revenue recognition)

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