F ir st Half of the F isc al Ye ar E nding F e br uar y 2018 - PowerPoint PPT Presentation

F ir st Half of the F isc al Ye ar E nding F e br uar y 2018 (1H F Y2/ 18) Re sults Br ie fing WARABE YA NI CHI YO HOL DI NGS CO., L T D. (2918) Oc to b e r 11, 2017

Ove r vie w of F inanc ial Re sults for 1H F Y2/ 18 and F ull- ye ar F or e c ast for F Y2/ 18 (Consolidate d Basis) 2

Consolidate d financ ial r e sults for 1H F Y2/ 18 (Millio ns o f ye n) 1H F Y2/ 17 1H F Y2/ 18 Vs Yo Y F o re c a st F o re c a st Re sults Re sults a t b e g inning o f F Y a t b e g inning o f F Y 109,658 113,700 2,641 -1,400 112,300 Ne t sale s (100.0) (100.0) <2.4> <-1.2> (100.0) 3,027 3,400 184 -188 3,211 Ope r ating inc ome (2.8) (3.0) <6.1> <-5.5> (2.9) 3,287 3,550 288 26 3,576 Or dinar y inc ome (3.0) (3.1) <8.8> <0.8> (3.2) Pr ofit 1,644 2,350 502 -202 2,147 (attr ibutable to (1.5) (2.1) <30.6> <-8.6> (1.9) owne r s of par e nt) E PS (Ye n) 93.78 133.99 28.66 -11.55 122.44 (attr ibutable to owne r s of par e nt) *F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%). E stima te s fo r 1H F Y2/ 18 a nno unc e d o n April 14, 2017. 3

F or e c ast and diffe r e nc e fac tor s (Millio ns o f ye n) 1H F Y2/ 18 [Diffe re nc e fa c to rs] Vs. F o re c a st F o re c a st F o o d Pro duc ts Busine ss -1,090 Re sults a t b e g inning o f F Y Chille d b e nto me a l b o xe s -730 113,700 -1,400 112,300 Bre a d pro duc ts -630 Ne t sale s (100.0) <-1.2> (100.0) F o o d I ng re die nts, L o g istic s, Othe r Busine sse s -300 (Millio ns o f ye n) 1H F Y2/ 18 [Diffe re nc e fa c to rs] Vs. F o re c a st F o re c a st F o o d Pro duc ts Busine ss -210 Re sults a t b e g inning o f F Y 3,400 -188 Ope r ating 3,211 F o o d I ng re die nts, L o g istic s, inc ome (3.0) <-5.5> (2.9) Othe r Busine sse s +20 *F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%). E stima te s fo r 1H F Y2/ 18 a nno unc e d o n April 14, 2017. 4

Consolidate d ne t sale s by se gme nt (YoY) (Millio ns o f ye n) *F ig ure s in < > sho w c ha ng e (%). F ood Produc ts Busine ss F ood Ingr e dients Busine ss L ogistic s Busine ss Othe r Businesse s 1H 1H Cha ng e Cha ng e fa c to rs F Y2/ 17 F Y2/ 18 (Millions of ye n) 120,000 112,300 2,641 T otal ne t 109,658 109,658 112,300 <2.4> sale s 3,417 3,029 7,532 7,490 13,092 Stro ng sa le s o f o nig iri ric e 13,318 F o o d 2,437 90,000 85,820 b a lls a nd c hille d 88,257 Pro d uc ts <2.8> Ja pa ne se swe e ts L o we r sa le s o f fish ro e a nd F o o d -225 13,318 pro c e sse d c hic ke n 13,092 Ing re d ie nts <-1.7> 60,000 pro d uc ts Slo wing sa le s g ro wth in 88,257 85,820 41 c o mb ine d d istrib utio n 7,490 L o g istic s 7,532 <0.6> b usine ss supplying Se ve n- E le ve n 30,000 387 Rising o rd e rs in te mpo ra ry 3,029 Othe r 3,417 <12.8> sta ffing b usine ss 0 1H F Y2/ 17 1H F Y2/ 18 5

Consolidate d ope r ating inc ome by se gme nt (YoY) (Millio ns o f ye n) (Millio ns o f ye n) * F ig ure s in < > sho w c ha ng e (%). F ood Produc ts F ood Ingre die nts L og istic s Busine ss Busine ss Busine ss 1H F Y2/ 17 Cha ng e 1H F Y2/ 18 Othe r Inte r-se g me nt Busine sse s tr a nsa c tions T otal ope r ating 184 3,027 (Millions of ye n) 3,211 <6.1> inc ome 3,700 3,211 325 441 3,027 F o o d Pro d uc ts 2,414 57 2,855 272 <18.3> 263 143 40 232 F o o d Ing re d ie nts 232 272 <17.3> -86 1,700 L o g istic s 143 57 2,855 <-60.1> 2,414 61 Othe r 263 325 <23.2> Inte r-se g me nt -272 -27 - 299 - 299 - 27 tra nsa c tio ns <–> - 300 1H F Y2/ 17 1H F Y2/ 18 (Millio ns o f ye n) Sa le s g ro wth +210 Hig he r ric e pric e s -280 I nc re a se in la b o r c o sts -350 I mpro ve me nt in pro duc tivity, c ha ng e s to pro duc t sta nda rds +400 De c line in sa le s pro mo tio n c o sts +230 Hig he r de pre c ia tio n c o sts, le a se e xpe nse s -120 Othe r +90 Ne gative impac t on profits -750 Positive impac t on profits +930 T otal YoY: appr ox. +180 6

Non- ope r ating inc ome / e xpe nse s and e xtr aor dinar y inc ome / losse s (YoY) (Millio ns o f ye n) 1H F Y2/ 17 Cha ng e 1H F Y2/ 18 3,027 184 3,211 Ope r ating inc ome (2.8) <6.1> (2.9) 483 48 Non- ope r ating 532 (0.4) <10.0> inc ome (0.5) (E xtra o rd ina ry lo sse s) 223 -56 Pre vio us fisc al ye a r: 450 Non- ope r ating 167 (0.2) <-25.1> • Nic hiyo : Pro visio n fo r lo ss o n b usine ss o f e xpe nse s (0.1) sub sid ia rie s a nd a sso c ia te s d ue to fixe d a sse t 3,287 288 3,576 impa irme nt lo sse s fo r F re vo F a rm Co ., L td . Or dinar y inc ome (3.0) <8.8> (3.2) Curre nt fisc al ye a r: 560 • Wa ra b e ya Nic hiyo : Impa irme nt lo sse s – – E xtr aor dinar y – re la te d to K ushiro Pla nt 370 (–) <–> inc ome (–) • Nic hiyo : Pro visio n o f a llo wa nc e fo r d o ub tful a c c o unts re la te d 450 112 E xtr aor dinar y 562 to Nic hima n 180 (0.4) <25.0> losse s (0.5) 2,837 176 Pr ofit be for e inc ome 3,013 (2.6) <6.2> taxe s (2.7) (Yo Y c ha ng e in ta x e xpe nse s) -320 Applic a tio n o f ta x e ffe c t a c c o unting 1,193 -326 866 T otal inc ome taxe s fo r pro visio ns re la te d to F re vo F a rm Co ., L td . -370 (1.1) <-27.3> (0.8) Applic a tio n a t pre vio us fisc al ye a r-e nd +150 Applic a tio n in c urre nt fisc al ye a r -210 Pr ofit 1,644 502 2,147 (a ttr ibuta ble to owne r s of (1.5) <30.6> (1.9) pa r e nt) *F ig ure s in ( ) sho w sa le s ra tio , a nd fig ure s in < > sho w c ha ng e (%). 7

Consolidate d balanc e she e ts (YoY) (Millio ns o f ye n) (Millio ns o f ye n) [L iabilitie s and E nd- 1H E nd- 1H E nd-F Y2/ 17 Cha ng e E nd-F Y2/ 17 Cha ng e [Asse ts] F Y2/ 18 F Y2/ 18 ne t asse ts] 26,660 4,028 30,689 Cur r e nt liabilitie s 36,316 2,267 38,584 Cur r e nt asse ts Non- c ur r e nt 14,040 -41 13,998 Non- c ur r e nt liabilitie s 47,561 3,011 50,572 asse ts [Inte r e sting- [12,730] [779] [13,510] be ar ing de bt] [Pr ope r ty, plant [41,427] [2,653] [44,080] and e quipme nt] 40,700 3,987 44,688 T otal liabilitie s [Intangible [920] [42] [962) asse ts] 43,176 1,291 T otal ne t asse ts 44,468 [Inve stme nts [5,213] [315] and othe r [5,529] [Re taine d [26,858] [1,442] [28,301] asse ts] e ar nings] T otal liabilitie s 83,877 5,279 T otal asse ts 89,157 83,877 5,279 89,157 and ne t asse ts 8

Consolidate d state me nts of c ash flows for 1H F Y2/ 18 (Millio ns o f ye n) 1H F Y2/ 18 Pro fit b e fo re inc o me ta xe s 3,013 De pre c ia tio n 2,471 De c re a se (inc re a se ) in no te s a nd a c c o unts re c e iva b le – tra d e - 3,682 De c re a se (inc re a se ) in inve nto rie s 693 Inc re a se (d e c re a se ) in no te s a nd a c c o unts pa ya b le – tra d e 2,226 Inc re a se (d e c re a se ) in a c c o unts pa ya b le – o the r 792 Othe r 455 Subtotal 5,971 Inc o me ta xe s pa id - 473 Othe r 297 Cash flows fr om ope r ating ac tivitie s 5,794 Purc ha se o f pro pe rty, pla nt a nd e q uipme nt - 3,899 Othe r - 757 Cash flows fr om inve sting ac tivitie s - 4,656 Cash flows fr om financ ing ac tivitie s - 2,190 E ffe c t of e xc hange r ate c hange on c ash and c ash e quivale nts - 120 Ne t inc r e ase (de c r e ase ) in c ash and c ash e quivale nts - 1,172 Cash and c ash e quivale nts at the be ginning of pe r iod 10,937 Cash and c ash e quivale nts at the e nd of pe r iod 9,764 9