Nisshin Seifun : Supplementary Materials Second Quarter of Fiscal 2023

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

Second Quarter of Fiscal 2023

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

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

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

October 26, 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

500,000
				32.6
400,000	24.1	22.6	26.5
300,000
17.6
200,000	346,518	335,944	325,727	388,742
284,289
100,000
0
2Q	2Q	2Q	2Q	2Q
FY2019	FY2020	FY2021	FY2022	FY2023

Operating profit (%)

(%)	(Millions of yen)					(%)
40.0	18,000	5.1			4.8		6.0
35.0	16,000
4.1
			4.1	5.0
30.0	14,000		3.7
25.0	12,000						4.0
10,000
20.0						3.0
8,000				15,568	15,919
15.0	14,406	14,124	12,356
6,000			2.0
10.0	4,000						1.0
5.0	2,000
0.0	0	2Q	2Q	2Q	2Q	2Q	0.0
		FY2019	FY2020	FY2021	FY2022	FY2023

		Ordinary profit (%)						Profit (loss) attributable to
(Millions of yen)					(%)	(Millions of yen)	owners of parent (%)			(%)
20,000	5.9			5.3		7.0	20,000		13,519					10.0
18,000						11,108	9,057	9,957
					6.0	10,000				5.0
16,000					4.4
		4.1
14,000							3.9	3.9
	4.4			5.0		0	2.7	3.1			0.0
12,000						4.0
10,000						(10,000)							(5.0)
16,809			17,425	17,220
8,000	15,113	13,652	3.0	(20,000)							(10.0)
6,000
				2.0						(9.7)
4,000
					1.0	(30,000)							(15.0)
2,000										(37,795)
0	2Q	2Q	2Q	2Q	2Q	0.0	(40,000)	2Q	2Q	2Q	2Q		2Q	(20.0)
	FY2019	FY2020	FY2021	FY2022	FY2023				FY2019	FY2020	FY2021	FY2022	FY2023
[Performance Trends]		Q202109 Q202109 Q202109 Q202109 Q202109		(Millions of yen)
				2Q	2Q		2Q		2Q	2Q	vs. 2Q	Change		FY2023
				FY2019	FY2020	FY2021	FY2022	FY2023	FY2022	(%)		Forecast
Net sales *1			284,289	346,518	335,944	325,727	388,742	63,014	119.3%	780,000

Overseas sales	49,996	83,609	76,076	86,373	126,760	40,386	146.8%	242,500
(%)	17.6%	24.1%	22.6%	26.5%	32.6%	6.1%			31.1%
Operating profit *1	14,406	14,124	12,356	15,568	15,919	351	102.3%	33,000
(%)	5.1%	4.1%	3.7%	4.8%	4.1%	(0.7)%			4.2%
Ordinary profit *1	16,809	15,113	13,652	17,425	17,220	(204)	98.8%	35,000
(%)	5.9%	4.4%	4.1%	5.3%	4.4%	(0.9)%			4.5%

Profit (loss) attributable to owners of	11,108	13,519	9,057	9,957	(37,795)	(47,752)	-
parent *1
(%)	3.9%	3.9%	2.7%	3.1%	(9.7)%	(12.8)%
Capital expenditures	7,760	10,999	7,539	8,173	8,347	173	102.1%
(construction base)

(18,500)

(2.4)%

22,000

Depreciation and amortization	7,211	10,141	10,809	11,199	11,523	323	102.9%
Number of employees	6,771	9,010	9,107	8,999	9,134	135	101.5%
(consolidated) (Persons)
(Reference)
Operating profit before amortization of	15,511	18,390	16,342	19,977	20,422	445	102.2%
goodwill, others *1

24,000

-

39,253

Amortization of goodwill, others *2

1,104

4,266

3,986

4,408

4,503

94

102.1%

6,253

*1 The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ No. 29) from the start of FY2022 (April 1, 2021).

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

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[Balance Sheet Trends]	#N/A	#N/A	#N/A	#N/A	#N/A	(Millions of yen)
	As of	As of	As of	As of	As of	vs. as of
	September 30,
	March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2022	March 31, 2022
	2022
Current assets	268,170	238,980	238,674	280,527	303,929	23,402
Property, plant and equipment, and intangible assets	166,780	277,204	288,804	288,132	235,522	(52,609)
Investments and other assets	159,802	150,030	159,935	154,414	162,541	8,126
Total assets	594,754	666,215	687,415	723,073	701,993	(21,080)
Current liabilities	114,806	131,058	108,740	129,158	136,816	7,658
Non-current liabilities	61,098	126,114	133,900	133,272	132,080	(1,192)
Equity capital	403,937	394,995	433,089	449,174	420,940	(28,233)
Equity ratio (%)	67.9%	59.3%	63.0%	62.1%	60.0%	(2.1)%
Subscription rights to shares	167	137	116	95	44	(50)
Non-controlling interests	14,743	13,908	11,569	11,373	12,111	738
Total liabilities and net assets	594,754	666,215	687,415	723,073	701,993	(21,080)
[Shareholders' Equity and Dividends]
	As of	As of	As of	As of	As of	vs. as of
	September 30,
	March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2022	March 31, 2022
	2022
Net assets per share (Yen) *1	1,359.49	1,328.71	1,456.37	1,510.35	1,415.98	(94.37)
	2Q	2Q	2Q	2Q	2Q	vs. 2Q
	FY2019	FY2020	FY2021	FY2022	FY2023	FY2022
Earnings per share (Yen) *1	37.41	45.50	30.47	33.49	(127.11)	(160.60)
Fully diluted earnings per share (Yen) *1	37.37	45.46	30.47	33.49	-	-
Interim dividend per share (Yen)	16.00	17.00	17.00	19.00	19.00	-
Total interim dividends (Millions of yen)	4,754	5,054	5,056	5,652	5,652	-

*1 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
	September 30,
	March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2022
	2022
(Interim) Shares issued and outstanding at end of period	297,204	297,359	297,456	297,478	297,360
(Thousand shares)
(Interim) Share price at end of period (Yen)	2,540	1,802	1,850	1,706	1,468
Total market value of shares (Millions of yen)	754,899	535,841	550,293	507,497	436,525

[Statements of Cash Flows]						(Millions of yen)
	2Q	2Q	2Q	2Q	2Q	vs. 2Q
	FY2019	FY2020	FY2021	FY2022	FY2023	FY2022
Net cash provided by (used in) operating activities	15,905	10,935	25,439	29,376	(1,823)	(31,200)
Net cash provided by (used in) investing activities	(8,171)	(90,392)	(8,230)	(8,474)	(6,733)	1,740
Net cash provided by (used in) financing activities	(3,636)	19,576	(9,701)	(10,587)	(1,258)	9,329
Effect of exchange rate change on cash and cash	(584)	76	277	(597)	1,769	2,367
equivalents
Cash and cash equivalents at beginning of period	98,461	107,374	56,550	59,152	68,728	9,576
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	100,967	48,284	64,335	68,869	60,682	(8,186)

FY2023

Forecast

-

FY2023

Forecast

(62.22)

-

39.00

-

(Yen)	Net assets per share (Yen)	(Yen)
1,600		100
	1,510.35	50
1,500	1,456.37
1,415.98	0
1,400	1,359.49	(50)
1,328.71
1,300		(100)
	(150)
1,200		(200)

As of	As of	As of	As of	As of
March 31,	March 31,	March 31,	March 31,	September
2019	2020	2021	2022	30, 2022

Earnings per share (Yen)

37.41	45.50	30.47	33.49
				(127.11)
2Q	2Q	2Q	2Q	2Q
FY2019	FY2020	FY2021	FY2022	FY2023

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1. Consolidated Statements of Income

1. Consolidated Statements of Income

		#N/A	#N/A				(Millions of yen)
		2Q	2Q	YoY			FY2023
		FY2022	FY2023	Change			Forecast
Net sales	325,727	388,742	63,014			780,000
Cost of sales	252,959	308,600	55,641
Gross profit	72,768	80,141	7,372
Selling, general and administrative expenses	57,200	64,221	7,021
	Selling expenses	19,440	22,606	3,165
	Personnel expenses	18,786	20,227	1,441
	Non-personnel expenses	18,972	21,386	2,413
Operating profit	15,568	15,919	351				33,000
		3,518	3,183	(334)
Non-operating income
	Interest income	62	103	40
		Non-operating income	FY2023	YoY
	Dividend income	1,443	1,577	134		(expenses)	Forecast	Change
	Share of profit of entities accounted for	1,498	632	(865)		Net financial income	(100)	(346)
	using equity method		Equity in earnings	800	(1,270)
	513	869	356		(losses) of affiliates
	Other
		Other	1,300	421
Non-operating expenses	1,661	1,882	220
	Interest expenses	1,457	1,703	246
	Other	204	179	(25)
Ordinary profit	17,425	17,220	(204)				35,000
Extraordinary income	648	206	(441)
	Gain on sale of investment securities	648	206	(441)
Extraordinary losses	393	56,194	55,800
	Loss on retirement of non-current assets	393	203	(189)
	Impairment losses	-	55,836	55,836	The Australia flour milling business
	Expenses related to change of the	-	154	154	Nisshin Seifun Welna
	company name
Profit (loss) before income taxes	17,680	(38,766)	(56,446)
Total income taxes	7,063	(1,649)	(8,713)
Profit (loss)	10,616	(37,117)	(47,733)
Profit attributable to non-controlling interests	659	677	18
Profit (loss) attributable to owners of parent	9,957	(37,795)	(47,752)			(18,500)

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2. Net Sales and Operating Profit by Segment

[Net Sales by Segment]

					(Millions of yen)
	2Q		2Q		Difference	YoY
	(Composition	(Composition	from previous
	FY2022	FY2023	Change
	ratio)	ratio)	year
Flour Milling	147,213	45%	201,881	52%	54,667	137.1%
Processed Food	90,607	28%	92,486	24%	1,878	102.1%
Prepared Dishes and Other Prepared Foods	68,333	21%	73,285	19%	4,952	107.2%
Others	19,572	6%	21,089	5%	1,516	107.7%
Total	325,727	100%	388,742	100%	63,014	119.3%
Overseas Sales (included in sales data above)					Currency Exchange Rates (Yen)

	2Q	2Q	Difference	Impact of	YoY
	currency
	from previous
	FY2022	FY2023	exchange rate	Change
	year
				fluctuations
Flour Milling	75,657	114,833	39,176	15,682	151.8%
Processed Food	8,166	8,684	517	898	106.3%
Prepared Dishes and Other Prepared Foods	-	-	-	-	-
Others	2,549	3,242	692	215	127.2%
Total	86,373	126,760	40,386	16,796	146.8%

(Analysis of Net Sales Difference from Previous Year)

	2Q	2Q
	FY2022	FY2023
USD	109.6	131.3
CAD	88.1	102.5
AUD	82.7	93.1
NZD	77.4	84.6
THB	3.4	3.8
INR	1.5	1.7

(Billions of yen)

2Q FY2023 (Difference from previous year)

Flour Milling	+54.7	 Domestic wheat flour shipments (down 1.1% YoY)	(0.8)
		 Flour price revisions accompanying revised wheat prices, others	+15.6
		 Bran prices	+0.7
		 Overseas sales	+39.2
Processed Food	+1.9	 Processed Food sales	+3.0
		Household-use flour sales	(0.3)
		Prepared mix product sales	+0.3
		Pasta-related sales	+0.7
		Frozen food sales	+0.1
		Overseas processed food sales	+1.5
		Other	+0.7
		 Oriental Yeast sales	+0.2
		 Nisshin Pharma sales	(1.3)
Prepared Dishes and Other Prepared Foods	+4.9	 Prepared dishes and other prepared foods sales	+4.9
Others	+1.5	 NBC Meshtec sales	+0.4
Total	+63.0	 Facility construction sales, others (Nisshin Engineering, others)	+1.1

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