Nisshin Seifun : Supplementary Materials Third 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

Third Quarter of Fiscal 2023

1. Consolidated Performance Highlights……………………… P. 1

1. Net Sales and Operating Profit by Segment……………… P. 2-3

January 30, 2023

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.

I. Consolidated Performance Highlights

Net sales

(Millions of yen)	* Line graph is overseas sales ratio
800,000
700,000					32.6
600,000		23.4	22.5	26.7
500,000	18.0
400,000
300,000		536,666	513,974	505,310	600,005
200,000	429,472
100,000
0	3Q	3Q	3Q	3Q	3Q
	FY2019	FY2020	FY2021	FY2022	FY2023

Operating profit (%)

(%)	(Millions of yen)					(%)
40.0	35,000	5.3			5.2		6.0
35.0	30,000	4.5		4.2
	4.3		5.0
30.0
25,000
						4.0
25.0
20,000
20.0						3.0
15,000
15.0				26,150	25,462
10,000	22,681	23,909	22,193	2.0
10.0
5.0	5,000						1.0
0.0	0	3Q	3Q	3Q	3Q	3Q	0.0
		FY2019	FY2020	FY2021	FY2022	FY2023

		Ordinary profit (%)					Profit (loss) attributable to
(Millions of yen)					(%)	(Millions of yen)	owners of parent (%)
40,000	6.3					7.0	30,000
35,000						18,117	19,951		18,200
			5.8			20,000	16,255
				6.0
			4.8	4.5
30,000		4.9			4.2	3.7		3.6
			5.0	10,000	3.2
25,000
20,000						4.0	0
15,000	27,126	26,221		29,384	27,040	3.0	(10,000)
24,489						(3.8)
10,000		2.0
5,000						1.0	(20,000)					(22,912)
0	3Q	3Q	3Q	3Q	3Q	0.0	(30,000)	3Q	3Q	3Q	3Q	3Q
	FY2019	FY2020	FY2021	FY2022	FY2023			FY2019	FY2020	FY2021	FY2022	FY2023

(%)

15.0

10.0

5.0

0.0

(5.0)

(10.0)

(15.0)

[Performance Trends]	Q202212 Q202212 Q202212 Q202212 Q202212		(Millions of yen)
	3Q	3Q	3Q	3Q	3Q	vs. 3Q	Change		FY2023
	FY2019	FY2020	FY2021	FY2022	FY2023	FY2022	(%)		Forecast *3
Net sales *1	429,472	536,666	513,974	505,310	600,005	94,695	118.7%		780,000
Overseas sales	77,259	125,492	115,767	134,778	195,648	60,870	145.2%	242,500
(%)	18.0%	23.4%	22.5%	26.7%	32.6%	5.9%			31.1%
Operating profit *1	22,681	23,909	22,193	26,150	25,462	(688)	97.4%	33,000
(%)	5.3%	4.5%	4.3%	5.2%	4.2%	(1.0)%			4.2%
Ordinary profit *1	27,126	26,221	24,489	29,384	27,040	(2,343)	92.0%	35,000
(%)	6.3%	4.9%	4.8%	5.8%	4.5%	(1.3)%			4.5%
Profit (loss) attributable to	18,117	19,951	16,255	18,200	(22,912)	(41,112)	-	(10,000)
owners of parent *1
4.2%	3.7%	3.2%	3.6%	(3.8)%	(7.4)%			(1.3)%
(%)

Capital expenditures	12,556	15,968	11,040	12,754	13,638	884	106.9%
(construction base)
10,980	15,551	16,355	17,025	17,222	197	101.2%
Depreciation and amortization
(Reference)
Operating profit before	24,364	30,242	28,236	32,769	30,823	(1,946)	94.1%
amortization of goodwill, others *1

22,000

24,000

39,253

Amortization of goodwill, others *2

1,683

6,333

6,043

6,619

5,360

(1,258)

81.0%

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). *3 Profit or loss attributable to owners of parent in these business forecasts changed on January 30, 2023

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II. Net Sales and Operating Profit by Segment [Net Sales by Segment]

							(Millions of yen)						(Millions of yen)
	3Q			3Q		Difference	YoY			FY2023
	(Composition		(Composition	from previous				(Composition
	FY2022		FY2023	Change			Forecast
	ratio)		ratio)	year					ratio)
	229,410		45% 313,345		83,934	136.6%
Flour Milling		52%			401,000			51%
Processed Food	138,343		27% 142,043	24%	3,699	102.7%			192,000			25%
Prepared Dishes and Other Prepared Foods	105,872		21% 113,290	19%	7,417	107.0%	145,000			19%
Others	31,683		7%	31,326	5%	(356)	98.9%			42,000			5%
Total	505,310		100% 600,005	100%	94,695	118.7%		780,000			100%
Overseas Sales (included in sales data above)					(Millions of yen)		Currency Exchange Rates	(Yen)
	3Q	3Q		Difference	Impact of	YoY		FY2023				3Q	3Q	FY2023
		currency
	from previous
	FY2022	FY2023	exchange rate	Change		Forecast				FY2022	FY2023	(Projection)
		year
						fluctuations
	118,326		177,862		59,535	26,266	150.3%				USD	110.7	135.5	136.0
Flour Milling				218,500
Processed Food	12,521		13,036		514	1,438	104.1%		17,700		CAD		88.6	103.7	105.0
Prepared Dishes and Other Prepared Foods	-		-		-	-	-		-		AUD		82.7	93.4	95.0
Others	3,930		4,750		819	318	120.9%		6,300		NZD		78.0	84.7	85.0
Total	134,778		195,648		60,870	28,023	145.2%		242,500		THB		3.4	3.8	3.8
												INR		1.5	1.7	1.7

(Analysis of Net Sales Difference from Previous Year)

			(Billions of yen)
			3Q FY2023
			(Difference from
			previous year)
	+83.9
Flour Milling	 Domestic wheat flour shipments (down 2.4% YoY)	(2.8)
		 Flour price revisions accompanying revised wheat prices, others	+26.0
		 Bran prices	+1.2
		 Overseas sales	+59.5
Processed Food	+3.7	 Processed Food sales	+5.2
		Household-use flour sales	(0.5)
		Prepared mix product sales	+0.5
		Pasta-related sales	+2.1
		Frozen food sales	+0.8
		Overseas processed food sales	+1.8
		Other	+0.5
		 Oriental Yeast sales	+0.8
Prepared Dishes and Other Prepared		 Nisshin Pharma sales	(2.3)
+7.4	 Prepared dishes and other prepared foods sales	+7.4
Foods
(0.3)		+0.5
Others	 NBC Meshtec sales
		 Facility construction sales, others (Nisshin Engineering, others)	(0.8)
Total	+94.7

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[Operating Profit by Segment]

						(Millions of yen)					(Millions of yen)
	3Q		3Q		Difference	YoY				FY2023
	(Composition	(Composition	from previous					(Composition
	FY2022	FY2023	Change				Forecast
	ratio)	ratio)	year					ratio)
Flour Milling	7,704		12,191		4,486	158.2%
29%	48%			16,300		49%
Processed Food	11,244	43%	5,527	22%	(5,717)	49.2%				8,000		24%
Prepared Dishes and Other Prepared Foods	3,273	13%	3,264	13%	(8)	99.7%				3,300	10%
Others	3,804	15%	4,338	16%	534	114.0%			5,300		17%
Adjustments	123	0%	139	1%	16	-			100		0%
Total	26,150	100%	25,462	100%	(688)	97.4%			33,000	100%
Amortization of goodwill, others (Deducted from [Operating Profit by Segment] above)	(Millions of yen)

3Q	3Q	Difference
from previous
FY2022	FY2023
year

FY2023

Forecast

Flour Milling	5,394	4,136		(1,258)		4,620
Processed Food	48	48		-		64
Prepared Dishes and Other Prepared Foods	1,176	1,176		-		1,568
Others		-	-	-		-
Total	6,619	5,360		(1,258)			6,253
Overseas Operating Profit (included in [Operating Profit by Segment] above)			(Millions of yen)

3Q	3Q	Difference	Impact of	YoY	FY2023
currency
from previous
FY2022	FY2023	exchange rate	Change	Forecast
year	fluctuations

Flour Milling	1,293	5,679	4,385	1,189	439.0%	7,900
Processed Food	2,015	(76)	(2,091)	41	-		100
Prepared Dishes and Other Prepared Foods	-	-	-	-	-		-
Others	341	511	170	29	149.8%		400
Total	3,650	6,114	2,464	1,260	167.5%		8,400

(Analysis of Operating Profit Difference from Previous Year)

			(Billions of yen)
			3Q FY2023
			(Difference from
			previous year)
Flour Milling	+4.5	 Domestic wheat flour shipment volume
(0.6)
		 Sales expansion costs	(0.3)
		 Bran prices	+1.2
		 Cost related	(0.2)
		 Overseas operating profit	+4.4
Processed Food	(5.7)	 Shipment volume	(1.0)
		 Sales expansion costs	(0.6)
		 Cost related	(2.0)
		 Overseas operating profit	(2.1)
		(incl. Oriental Yeast, Nisshin Pharma exports)
Prepared Dishes and Other Prepared Foods	(0.0)	 Sales	+1.4
		 Cost related, others	(1.4)
Others	+0.5	 Sales	+0.2
		 Cost related, others	+0.3
Adjustments	+0.0	 Intersegment transaction eliminations	+0.0
Total	(0.7)

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