WARABEYA NICHIYO HOLDINGS CO., LTD. (2918) April 17, 2018 (2918) - PowerPoint PPT Presentation

F isc al Ye ar E nde d F e br uar y 2018 Re sults Br ie fing WARABEYA NICHIYO HOLDINGS CO., LTD. (2918) April 17, 2018 (2918) 2016 年 4 月 15 日

Ove r vie w of F inanc ial Re sults for F Y2/ 18 and F ull-ye ar F or e c ast for F Y2/ 19 (Consolidate d Basis) 1

Consolidate d financ ial r e sults for F Y2/ 18 (Millions of yen) FY2/17 FY2/18 Revised Vs. Revised YoY forecast Results forecast Re sults (Announced in Oct. 2017) 214,305 219,600 4,797 -496 219,103 Net sales (100.0) (100.0) <2.2> <-0.2> (100.0) 4,099 4,150 -367 -418 Operating 3,731 income (1.9) (1.9) <-9.0> <-10.0> (1.7) 4,304 4,450 -281 -426 Ordinary 4,023 income (2.0) (2.0) <-6.5> <-9.6> (1.8) Profit 2,281 2,500 -187 -406 2,093 (attributable to (1.1) (1.1) <-8.2> <-16.2> (1.0) owners of parent) EPS (Yen) 130.09 142.56 -10.69 -23.16 (attributable to 119.40 owners of parent) 5.4 – -0.6 pt – ROE (%) 4.8 * For the fiscal year ended February 28, 2017, the Company booked provision for loss on guarantees of subsidiaries and associates of ¥0.44 billion and provision of allowance for doubtful accounts for subsidiaries and associates of ¥0.26 billion under extraordinary losses. * For the fiscal year ended February 28, 2018, the Company booked provision for loss on guarantees of subsidiaries and associates of ¥0.24 billion, provision of allowance for doubtful accounts for subsidiaries and associates of ¥0.30 billion, and impairment losses on fixed assets of ¥0.44 billion under extraordinary losses. * Figures in ( ) show sales ratio, and figures in < > show change (%). Revised estimates for FY2/18 announced on October 5, 2017. 2

Re vise d for e c ast (announc e d on Oc t. 5, 2017) and ope r ating inc ome diffe r e nc e fac tor s (Millions of yen) FY2/18 [Difference factors] Food Products Business -512 Vs. Revised Forecast forecast Personnel expenses (change in product Re sults (Announced mix, etc.) -212 in Oct. 2017) Ingredient costs -150 Utilities costs -150 4,150 -417 Ope r ating 3,731 Logistics Business +81 (1.9) <-10.1> inc ome (1.7) * Figures in ( ) show sales ratio, and figures in < > show change (%). Revised estimates for FY2/18 announced on October 5, 2017. 3

Consolidate d ne t sale s by se gme nt (YoY) (Millions of yen) Change Othe r Busine ss Food Products Food Ingredients FY2/17 Change factors F Y2/ 18 <Change (%)> Business L ogistic s Busine ss Business F ood Ingr e die nts Busine ss Logistics Other F ood Produc ts Busine ss Business Businesses T otal ne t 214,305 4,797 219,103 sale s (Millions <2.2> 219,103 of yen) 214,305 6,788 (+) Increase in delivery 6,995 14,721 point stores and Food 200,000 14,781 168,186 4,932 sales growth for 173,119 Products chilled bento meal 24,473 <2.9> 24,341 boxes (+) Increase in volume of vegetables and 150,000 agricultural products Food handled 24,341 132 24,473 Ingredients <0.5> (-) Decline in volume of processed marine products handled 100,000 (-) Lower volumes in distribution business 173,119 168,186 14,781 -59 Logistics supplying Seven- 14,721 Eleven stores and <-0.4> other users 50,000 (+) Sales growth in temporary staffing and contracting business 6,995 -207 Other 6,788 <-3.0> (-) Decline in large projects in food 0 engineering business FY2/17 FY2/18 4

Consolidate d ope r ating inc ome by se gme nt (YoY) (Millions of yen) Change after Change FY2/17 adjustment F Y2/ 18 <Change (%)> (Millions <Change (%)> of yen) 4,099 3,731 -367 -367 T otal ope r ating 4,099 3,731 525 535 4,000 <-9.0> <-9.0> inc ome 185 122 40 -257 443 432 3,167 Food Products 3,207 <1.3> <-8.1> 10 10 2,500 Food Ingredients 432 443 <2.4> <2.4> -62 -62 185 3,207 Logistics 3,167 122 <-34.0> <-34.0> 1,000 9 9 525 Other 535 <1.7> <1.7> -365 -68 Inter-segment -211 -211 -576 -576 transactions <–> <–> -500 FY2/17 FY2/18 〜 ¥4.09 billion FY2/17 operating income 2017.2期営業利益 YOY -¥ 0.36 billion New plants +¥0.12 billion 新⼯場 Change fac tor s Sales growth +¥0.36 billion 増収効果 Decline in sales promotion costs +¥0.23 billion 販促費負担減 +¥0.33 billion Decrease in measures to address aging facilities at existing plants 既存⼯場⽼朽化対策減少 Higher rice prices -¥0.50 billion ⽶価上昇 Increase in personnel expenses at plants -¥0.12 billion ⼯場労務費上昇 -¥0.21 billion Higher depreciation costs, lease expenses 減価償却費・リース料増加 Increase in utilities costs -¥0.20 billion ⽔道光熱費増加 Head office related costs -¥0.28 billion 本社関連費⽤ Other -¥0.09 billion その他 ¥3.73 billion 〜 5 FY2/18 operating income 2018.2期営業利益

Non-ope r ating inc ome / e xpe nse s and e xtr aor dinar y inc ome / losse s in F Y2/ 18 (Millions of yen) FY2/17 Change F Y2/ 18 4,099 3,731 -367 Ope r ating (1.9) (1.7) <-9.0> inc ome 647 689 42 Non-operating income (0.3) (0.3) <6.6> 442 398 -43 Non-operating expenses (0.2) (0.2) <-9.9> 4,304 4,023 -281 Or dinar y (2.0) (1.8) <-6.5> inc ome – – – Extraordinary F Y2/ 17: Br e akdown of e xtr aor dinar y losse s income (–) (–) (–) Provision of allowance 500 related to Frevo Farm 708 995 287 Extraordinary Provision of allowance losses (0.3) (0.5) <40.5> 200 related to Nichiman 3,595 3,027 -568 Profit before income taxes (1.7) (1.4) <-15.8> F Y2/ 18: Br e akdown of e xtr aor dinar y losse s 1,314 933 -380 Total income Pr ovision of allowanc e 550 r e late d to Nic himan taxes (0.6) (0.4) <-28.9> Impair me nt losse s 2,281 2,093 -187 440 Pr ofit r e late d to Kushir o Plant (attr ibutable to (1.1) (1.0) <-8.2> owne r s of par e nt) * Figures in ( ) show sales ratio, and figures in < > show change (%). 6

Consolidate d balanc e she e ts at e nd-F Y2/ 18 (Millions of yen) [L iabilitie s and FY2/17 Change FY2/17 Change [Asse ts] F Y2/ 18 F Y2/ 18 ne t asse ts] 26,660 26,053 -606 36,316 30,952 -5,364 Cur r e nt liabilitie s Cur r e nt asse ts Non-c ur r e nt 14,040 16,548 2,508 Non-c ur r e nt 47,561 55,936 8,375 liabilitie s asse ts [Inte r e sting- [12,730] [14,708] [1,977] [Pr ope r ty, plant be ar ing de bt] [41,427] [48,830] [7,403] and e quipme nt] 40,700 42,602 1,901 T otal liabilitie s [Intangible [920] [904] [-16] 43,176 44,286 1,109 asse ts] T otal ne t asse ts [Inve stme nts and [5,213] [6,202] [988] [Re taine d [26,858] [28,247] [1,389] othe r asse ts] e ar nings] 83,877 86,888 3,010 T otal liabilitie s 83,877 86,888 3,010 T otal asse ts and ne t asse ts T otal asse ts as of e nd-F Y2/ 18: appr ox. ¥3.0 billion inc r e ase T otal liabilitie s/ ne t asse ts as of e nd- F Y2/ 18: appr ox. ¥3.0 billion inc r e ase  Decrease in current liabilities (loans payable, etc.):  Decrease in current assets (cash and deposits, etc.): approx. ¥5.3 billion approx. ¥0.6 billion  Increase in non-current assets (construction in progress, leased assets,  Increase in non-current liabilities (long-term lease obligations, etc.): etc.): approx. ¥2.5 billion approx. ¥8.3 billion  Increase in net assets (retained earnings): approx. ¥1.1 billion 7

Consolidate d state me nts of c ash flows for F Y2/ 18 (Millions of yen) FY2/18 3,027 Profit before income taxes 5,082 Depreciation Changes in allowances and provisions (Breakdown) Increase (decrease) in allowance for doubtful 444 Impairment loss 195 accounts 437 Increase (Decrease) in allowances and provisions Increase (decrease) in provision for loss on business of -51 -359 Interest and dividend income subsidiaries and associates Increase (decrease) in provision for loss on Decrease (increase) in notes and accounts 242 -305 guarantees of subsidiaries and associates receivable - trade 98 Increase (decrease) in provision for bonuses -36 Decrease (increase) in inventories -47 Increase (decrease) in net defined benefit liability Increase (decrease) in notes and accounts payable -67 - trade -1,109 Increase (decrease) in accounts payable - other 1,619 Other 8,733 Subtotal -894 Income taxes paid 244 Other Effect of exchange rate change on cash and cash -100 equivalents Cash flows fr om ope r ating ac tivitie s 8,082 -7,722 Purchase of property, plant and equipment Ne t inc r e ase (de c r e ase ) in c ash and c ash - 5,733 e quivale nts -1,429 Other Cash and cash equivalents at the beginning of 10,937 period Cash flows fr om inve sting ac tivitie s -9,151 5,203 Cash and c ash e quivale nts at the e nd of pe r iod Cash flows fr om financ ing ac tivitie s -4,564 8