日清食品ホールディングス（2897） – Financial Results for FY 3/2022 3Q

Financial Results for FY 3/2022 3QAnnounced on February 3, 2022NISSIN FOODS HOLDINGS CO., LTD.(TSE Stock Code: 2897)Financial Results Presentation: February 4, 2022Management Policy for FY 3/2022Reboot and Make a Fresh StartIn the first year of our new management plan, we will sprint ahead with three growth strategies, as well as organizational and human resource reformsDomestic Existing BusinessesOverseas Existing BusinessesNew Businesses•Instant Noodles Business: Reform our supply chain structure, create new categories and channels, and transition to a new sales approach• Accelerate deeper global branding, which has already begun to produce results. Further solidify competitive advantage as a growth driver• Non-Instant Noodles Business: Accelerate group synergies in both supply and demand (mainly in the confectionery business) to build a foundation for growth and improved profitability• Pursue steady progress in multi-category and multi-area strategies to leverage business in China and Brazil• Launch businesses with a sense of urgency to gain recognition towards wider acceptance of complete nutritional foods• Launch businesses across five touch points and conduct proof-of-concept tests: (1) subscription home delivery service (DC2: intensive program), (2) corporate cafeterias, (3) seniors, (4) retail sales, and (5) smart citiesGroup Overall• Leverage the lessons of COVID-19 to transition both work styles and business structures to a new normal through the maximum use of digital • Respond accurately to consumer behavior and awareness to turn increased demand under the COVID-19 pandemic into sustainable growth technologiesdrivers* China (Incl. H.K.) strategy and related targets, financial results forecasts are established independently by NISSIN FOODS HOLDINGS1FY 3/2022 3Q Financial Results HighlightsFY 3/2022 3Q ResultsInstitutional accounting basisManagement accounting basis*1,*2Target levelfor FY 3/2022Revenue424.8 Bil. yen+13.6%417.1 Bil. yen + 15.8% Double Digit43.5 Bil. yen(5.0%)42.9 Bil. yen+ 16.8% Double DigitCore Operating Profit ofExisting BusinessesDomestic Instant Noodles BusinessDomestic Non-Instant Noodles BusinessOverseas BusinessSummary(3.9%)+6.5%(16.8%)+ 18.5% Mid single Digit+ 26.8%Double Digit(3.5%)Double Digit(Institutional accounting basis)• Revenue: Increased in all three businesses, even before deducting the impact of COVID-19• Core Operating Profit of Existing Businesses: Decreased in YoY due to the effect of COVID-19 despite steady growth compared to FY 3/2020 3Q*3(Management accounting basis) Steady progress toward Make a Fresh Start• Revenue: Increased in all three businesses and grew by 15.8% on a consolidated basis• Core Operating Profit of Existing Businesses: The growth rate of 16.8% on a consolidated basis YoY, exceeding the medium-to long-term target*1*2*3Growth rates are calculated by converting foreign currency amounts into yen at the same rate as the previous year, in order to emphasize real fluctuation / growth on a local currency basis excluding effect of exchange rate at the time of consolidation.Actual YoY change / growth rate excluding the impact of foreign exchange rates and the impact of COVID-19, which had a significant impact on FY 3/2021 results (i.e. increase in demand, reduction in selling expenses, unused expenses, etc.).Core operating profit of existing businesses vs. FY 3/2020 +8.3 Bil. yen (+23.5%) 2Consolidated Financial Summary•Institutional accounting basis: Increase in revenue and decrease in profits, but continued to maintain high growth compared to FY 3/2020 3Q• Management accounting basis: Higher YoY in all categories3vs. FY 3/2020AmountRatioCAGRAmountRatio①②③=①-②④=③÷②⑤⑥⑦=①-Fx impact⑧＝②-C-19⑨=⑦-⑧⑩=⑨÷⑧Revenue424.8 373.9 + 50.9 + 13.6% 348.0+ 10.5% 417.1 360.3 + 56.8 + 15.8% Core operating profitof existing businesses43.5 45.8 (2.3) (5.0%) 35.2+ 11.1% 42.9 36.7 + 6.2 + 16.8% Operating profit42.6 50.0 (7.4) (14.8%) 35.5+ 9.5% 42.0 40.9 + 1.1 + 2.7% Profit attributable to owners ofthe parent30.7 36.3 (5.5) (15.3%) 25.6+ 9.5% Core OP margin of existingbusinesses10.2% 12.2% (2.0pt-)10.1%10.3% 10.2% + 0.1pt OP margin10.0% 13.4% (3.3pt-)10.2%10.1% 11.4% (1.3pt-)Profit attributable to owners ofthe parent margin7.2% 9.7% (2.5pt-)7.4%Bil. YenFY 3/20223QFY 3/20223QFY 3/20213QFY 3/20203QInstitutional accounting basisYoY changeManagement accounting basis（Constant currency basis, Less COVID-19)FY 3/20213QYoY changeAnalysis of Core OP of Existing Businesses (YoY, Institutional accounting basis)DecreaseBil. yenIncreaseIncrease/decrease ofmarginal profitB： CoGS ratio(6.5)A： Revenue(including the impact of change in selling expense ratio)C： Distribution cost ratioD： Depr. & amort.Increase/decrease offixed expensesE： Ad. expensesF： G&A expensesG： Gain (loss) on investment accounted for using the equity methodH： Impact relating tobusiness combinationOthers(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)+0.7+0.4+0.2+0.1+0.8+0.2(1.2)(0.6)(0.7)(0.4)(0.5)(1.4)(0.4)(1.4)Major Factors: DomesticMajor Factors: Overseas+ Increased in revenue in instant noodles + Increased in revenue across all regions, +9.0business, etc.- Increase in selling expense ratio, etc.+ Product mix impact, etc.- Increased due to continuous soaring raw material costs, etc.etc. (Including the impact of the Americas price revisions)- Increased due to soaring raw materials costs in the Americas, EMEA and China (Incl. H.K.) , etc.+ Distribution efficiency improvement, – Increased in distribution costs, mainly in product mix impact, etc.- Rising distribution costsetc.the U.S., etc.Americas, etc.- Increased due to renewal of equipment, – Increased in China (Incl. H.K.) and the – Impact of new products in the beverages business and COVID-19 in the previous fiscal year, etc.- Impact of COVID-19 in the previous fiscal year, etc.- Impact of KOIKE-YA (Equity method)(The previous fiscal year: 11 months, current fiscal year: -) + Impact of KOIKE-YA (Consolidated subsidiary)(The previous fiscal year: 1 month, current fiscal year: 9 months) – Impact of COVID-19 in the previous fiscal year and increased in personnel costs, etc.- Impact of COVID-19 in the previous fiscal year and increased in raw material costs, etc.Increase/decreasein core OP of existing businesses(Domestic)(Overseas)(2.2)*In addition to the above, there is a year-on-yeardifference in “Reconciliations” of -0.3 Bil. yen.【Method of calculating increase/decrease factors】① Marginal Profit（A,B,C）= (Revenue in the current fiscal year x Ratio of revenue in the previous fiscal year)– Expenses in the current fiscal year.* The analysis of marginal profit is based on the amount obtained by adding selling expenses to revenue.② Fixed Costs （D,E,F）③ Others（G）（H）= Expenses in the previous fiscal year – Expenses in the current fiscal year.= Results in the previous fiscal year – Results in the current fiscal year.= Changes in core operating profit of newly consolidated company for the current fiscal year.44Financial Summary by Segment• The October-December period saw profits increase in both Domestic and Overseas businesses. The January-March period is anticipated to be affected by of further rises in material prices and expense delays 5Institutional accounting basisManagement accounting basisConsolidatedDomesticInstant NoodlesBusinessDomestic Non-Instant NoodlesBusinessOverseasBusinessCore operating profit of existing businesses grew at “Double Digit” +16.8%Core Operating Profit grew above “Midsingle Digit” by +18.5%Core Operating Profit grew at “Double Digit” +26.8%Core Operating Profit decreasedbecause of the decrease in profits from U.S. and equity-method associates could not be offset.Revenue: 424.8 Bil.yenCore Operating Profit of Existing Businesses: 43.5 Bil. yenYoY:+50.9Bil. yen,+13.6%YoY: (2.3) Bil. yen,-5.0%Revenueincreased due to strong performance at both NISSIN FOOD PRODUCTS andMYOJO FOODSProfits decreased due to the effect of COVID-19 (Steady growth at a CAGR of +7.3% over FY 3/2020 3Q)Both revenue and profitsincreased in the Chilled / Frozen foods and Beverage Businesses, as the Chilled / Frozen foods Businesses covered the increase in advertising expenses in the Beverages Business.Bothrevenue and profits increasedin the Confectionery Business due to the impact of KOIKE-YA, which was consolidated in December 2020 (Revenue increasedwithoutthis impact)Revenue increased in all regions (The Americas and China led significantly)Profits decreaseddue to impact of COVID-19 and inability to absorb cost increase mainly in the Americas (CAGR +2.8% over FY 3/20203Q)Revenue: 186.4 Bil. yenCore Operating Profit:28.5 Bil. yenYoY: +3.5 Bil.yen,+1.9%YoY: (1.2) Bil. yen, -3.9%Revenue: 113.2 Bil. yenCore Operating Profit:6.5 Bil. yenYoY: +29.5 Bil.yen,+35.2%YoY:+0.4 Bil. yen, +6.5%Revenue: 123.5 Bil. yenCore Operating Profit:10.9 Bil. yenYoY: +18.7 Bil.yen,+17.9%YoY: (2.2) Bil. yen, -16.8%Revenue: 186.4 Bil. yenCore Operating Profit:28.5 Bil. yenRevenue: 417.1 Bil.yenCore Operating Profit of Existing Businesses: 42.9 Bil. yenYoY: +56.8 Bil.yen,+15.8%YoY: +6.2 Bil. yen, +16.8%YoY: +6.9 Bil.yen,+3.8%YoY: +4.5 Bil. yen, +18.5%Revenue: 113.2 Bil. yenCore Operating Profit:6.5 Bil. yenYoY: +31.3 Bil.yen,+38.2%YoY: +1.4 Bil. yen, +26.8%Revenue: 115.8 Bil. yenCore Operating Profit:10.3 Bil. yenYoY: +20.5 Bil.yen,+21.5%YoY: (0.4) Bil. yen, -3.5%Revenue Results by Segment•Institutional accounting basis / Management accounting basis: Increased in all segments except Domestic Others* Results in China (Incl. H.K.) are based on the consolidation policy of NISSIN FOODS HOLDINGS. Disclosure may differ from that of NISSIN FOODS CO., LTD. (Located in H.K.)6vs. FY 3/2020AmountRatioCAGRAmountRatio①②③=①-②④=③÷②⑤⑥⑦=①-Fx impact⑧＝②-C-19⑨=⑦-⑧⑩=⑨÷⑧NISSIN FOOD PRODUCTS158.1 154.9 + 3.2 + 2.1% 150.8 + 2.4% 158.1 152.5 + 5.6 + 3.7% MYOJO FOODS28.3 28.0 + 0.2 + 0.8% 27.0 + 2.4% 28.3 27.0 + 1.3 + 4.7% Domestic Instant Noodles Business186.4 183.0 + 3.5 + 1.9% 177.7 + 2.4% 186.4 179.5 + 6.9 + 3.8% Chilled / frozen foods and beverages 61.2 58.6 + 2.6 + 4.5% 54.3 + 6.2% 61.2 57.4 + 3.9 + 6.7% Confectionery 52.0 25.2 + 26.9 + 106.8% 19.5 + 63.1% 52.0 24.6 + 27.4 + 111.6% Domestic Non-Instant Noodles Business113.2 83.7 + 29.5 + 35.2% 73.8 + 23.9% 113.2 82.0 + 31.3 + 38.2% Domestic Others1.7 2.4 (0.8) (31.4%) 3.2 (28.0%) 1.7 3.5 (1.9) (52.9%) Domestic total301.3 269.1 + 32.2 + 12.0% 254.7 + 8.8% 301.3 265.0 + 36.4 + 13.7% The Americas63.8 53.3 + 10.5 + 19.8% 48.5 + 14.7% 60.4 45.1 + 15.4 + 34.1% China (incl. H.K.)40.0 35.3 + 4.7 + 13.3% 31.2 + 13.3% 36.8 34.8 + 2.0 + 5.7% Asia11.2 9.5 + 1.7 + 18.0% 8.5 + 14.9% 10.7 9.3 + 1.4 + 14.6% EMEA8.5 6.7 + 1.8 + 27.1% 5.2 + 27.6% 7.9 6.1 + 1.8 + 29.2% Overseas total123.5 104.7 + 18.7 + 17.9% 93.3 + 15.0% 115.8 95.3 + 20.5 + 21.5% Consolidated 424.8 373.9 + 50.9 + 13.6% 348.0 + 10.5% 417.1 360.3 + 56.8 + 15.8% YoY changeBil. YenInstitutional accounting basisManagement accounting basis（Constant currency basis, Less COVID-19)FY 3/20223QFY 3/20213QYoY changeFY 3/20203QFY 3/20223QFY 3/20213QRevenue Contribution by Segment (Institutional accounting basis)FY 3/2021 3Q Revenue373.9 Bil. yenNISSIN FOODPRODUCTSMYOJO FOODSChilled / frozen foodsand beveragesDomesticInstant NoodlesBusinessDomestic Non-InstantNoodles Business+ 3.2 + 0.2 + 2.6 Confectionery+ 26.9 Domestic Others(0.8)The Americas+ 10.5 (Forex+3.4)China (incl. H.K.)+ 4.7 (Forex+3.3)AsiaEMEA+ 1.7 (Forex+0.5)+50.9(Forex+7.7)+ 1.8 (Forex+0.5)FY 3/2022 3Q Revenue424.8 OverseasBusinessMajor Factors* **(+2%) Cup type: CUP NOODLE KARAMEN, CUP NOODLE PRO, DONBEI and U.F.O. performed well.Bag type: BAKURETSU KARAMEN performed steadily. Others: The rice category, including CURRY MESHI and the new OSHA MESHI, performed well.(+1%) Cup type: MYOJO IPPEICHAN YOMISE NO YAKISOBA and MYOJO CHUKA ZANMAI which is selling well with SU RA TAN MEN, performed steadily.Bag type: Sales of MYOJO CHARUMERA grew thanks to the breakthrough of MIYAZAKI KARAMEN and the contribution of MOYASHI GA CHOZETSU UMAI MAZESOBA. MYOJO MEGAMI also contributed.Chilled foods (+7%): Revenue increased due to steady performance of mainstay brands such as GYORETSU NO DEKIRU MISE NO RAMEN. Frozen foods (+6%): Consumer-use products continued to perform well. YORK (-3%): Sales of the newly launched PILKUL 400 were strong, but sales decreased due to sluggish sales for CVS caused by COVID-19.CISCO (+2%): GOROTTO GRANOLA continues to trend well. BonChi (+2%): Sales of KAISEN AGESEN series and KARASHI MENTAIKO OGATA AGESEN, etc. were strong. KOIKE-YA: Sales of high-value-added products grew due to the launch of KOIKEYA The series to commemorate the 60th anniversary and other products (newly consolidated from December 2020)Revenue decreased, mainly at NISSIN FOODS HOLDINGSU.S.: Revenue increased due to strong sales of premium products and the effect of price revisions. (Incl. Forex impact +1.5 Bil. yen)(Revenue YoY:+3％, QoQ: + Low-single digit%, Number of servings YoY: – High-single digit%, QoQ: – Low-double digit%）Mexico: Revenue increased due in part to higher sales volume and price revisions for the mainstay products CUP NOODLES (Incl. Forex impact +0.7 Bil. yen) (Revenue YoY:+21％, QoQ: + Double digit%, Number of servings YoY: + Double digit%, QoQ: + Double digit%）Brazil: Revenue increased due to higher sales volume of mainstay products and the effects of price revisions. (Incl. Forex impact +1.2 Bil. yen) (Revenue YoY:+30％, QoQ: + Double digit%, Number of servings YoY: + High-single digit%, QoQ: + Single digit%）Hong Kong: Bag-type instant noodles sales were sluggish, but cup-type instant noodles are recovering. (Incl. Forex impact +0.6 Bil. yen) (Revenue YoY: +3%, Number of servings YoY: – Low double-digit%)Mainland China: Continued strong sales of CUP NOODLES series. (Incl. Forex impact +2.7 Bil. yen)(Revenue YoY: +5%, Number of servings YoY: + Low double-digit%)By descending order of revenue:Thailand: Increased (Incl. Forex impact +30 Mil. yen) India: Increased (Incl. Forex impact +0.2 Bil. yen)Singapore: Increased (Incl. Forex impact +0.1 Bil. yen) Indonesia: Increased (Incl. Forex impact +0.1 Bil. yen)Vietnam: Increased (Incl. Forex impact +20 Mil. yen)EMEA: CUP NOODLES, Demae Ramen and Soba brands performed well. (Incl. Forex impact +0.5 Bil. yen)7* Please refer to the Financial Supplemental Data for the year-on-year change based on shipment value by manufacturer of NISSIN FOOD PRODUCTS and MYOJO FOODS.** Comments and year-on-year change figures in Main Factors in the Americas, China (Incl. H.K.), Asia and EMEA segments are based on revenue on a local currency basis.Core OP Results by Segment•Institutional accounting basis: Domestic Business increased profit, while Overseas Business achieved a narrowing of profit decline.• Management accounting basis: Domestic segments were strong, and Existing Businesses exceeded the plan for this fiscal year* Results in China (Incl. H.K.) are based on the consolidation policy of NISSIN FOODS HOLDINGS. Disclosure may differ from that of NISSIN FOODS CO., LTD. (located in H.K.)8FY 3/2022 3QFY 3/2021 3QFY 3/2020 3Qvs. FY 3/2020FY 3/2022 3QFY 3/2021 3QCore OPCore OPAmountRatioCore OPCAGRCore OPCore OPAmountRatio①②③=①-②④⑤=③-④⑥=⑤÷④⑦⑧⑨=③-Fx impact⑩＝④-C-19⑪=⑨-⑩⑫=⑪÷⑩NISSIN FOOD PRODUCTS26.3 0.1 26.2 26.6 (0.5)(1.7%) 22.4 + 8.1% 26.2 21.9 + 4.3 + 19.7% MYOJO FOODS2.4 0.0 2.3 3.0 (0.7)(22.9%) 2.3 (0.3%) 2.3 2.2 + 0.1 + 6.5% Domestic Instant Noodles Business28.6 0.1 28.5 29.7 (1.2)(3.9%) 24.7 + 7.3% 28.5 24.0 + 4.5 + 18.5% Chilled / frozen foods and beverages 3.6 0.2 3.5 3.4 + 0.1 + 2.0% 1.4 + 54.9% 3.5 2.6 + 0.8 + 30.5% Confectionery 3.1 0.1 3.0 2.7 + 0.3 + 12.3% 1.1 + 64.9% 3.0 2.5 + 0.6 + 22.8% Domestic Non-Instant Noodles Business6.8 0.3 6.5 6.1 + 0.4 + 6.5% 2.6 + 59.4% 6.5 5.1 + 1.4 + 26.8% Domestic Others1.7 0.0 1.7 0.7 + 1.0 + 144.9% 1.4 + 9.5% 1.7 0.6 + 1.0 + 163.9% Domestic total37.1 0.4 36.7 36.4 + 0.2 + 0.6% 28.7 + 13.0% 36.7 29.8 + 6.9 + 23.0% The Americas2.6 0.0 2.6 4.0 (1.4)(34.5%) 3.5 (14.4%) 2.4 2.3 + 0.1 + 4.4% China (incl. H.K.)4.2 (0.2)4.3 3.9 + 0.4 + 10.5% 2.9 + 21.6% 3.9 3.4 + 0.6 + 17.1% Asia3.4 0.0 3.4 3.3 + 0.0 + 1.4% 2.7 + 12.0% 3.3 3.3 + 0.1 + 1.7% EMEA0.6 0.0 0.6 1.9 (1.3)(66.8%) 1.2 (26.5%) 0.6 1.7 (1.1)(64.6%) Overseas total10.8 (0.1)10.9 13.1 (2.2)(16.8%) 10.3 + 2.8% 10.3 10.7 (0.4)(3.5%) Domestic and Overseas Total 47.9 0.3 47.6 49.5 (2.0)(4.0%) 39.0 + 10.4% 47.0 40.5 + 6.5 + 16.0% Other reconciliations (0.1)(0.1)(0.0)(0.1)+ 0.0 -(0.0)-(0.0)(0.1)+ 0.0 -Group expenses (4.0)-(4.0)(3.7)(0.4)-(3.8)-(4.0)(3.7)(0.4)-Existing Businesses 43.7 0.2 43.5 45.8 (2.3)(5.0%) 35.2 + 11.1% 42.9 36.7 + 6.2 + 16.8% New Businesses (1.1)0.1 (1.2)(0.8)(0.5)-(0.1)-(1.2)(0.8)(0.5)-Consolidated 42.6 0.3 42.3 45.0 (2.8)(6.2%) 35.1 + 9.7% 41.736.0+ 5.7 + 15.8% YoY changeBil. YenOPOther Incomeand ExpenseYoY changeManagement accounting basis（Constant currency basis, Less COVID-19)Institutional accounting basisExisting Businesses Contribution to Core OP by Segment (Institutional accounting basis)FY 3/2021 3Q Core OP45.8 Major FactorsBil. yenDomesticInstant NoodlesBusinessDomestic Non-InstantNoodles BusinessNISSIN FOOD PRODUCTSMYOJO FOODSChilled / frozen foodsand beveragesConfectionery(0.5)(0.7)+0.1 +0.3 +) Increased in operating profit due to increased sales, product mix, etc.- ) Increased in raw material costs, depreciation (equipment renewal, etc.), and general and administrative expenses, etc.+) Increased in operating profit due to increased sales and decreased general and administrative expenses, etc.- ) Increased in raw material costs, sales promotion expenses, depreciation and advertising expenses, etc.Chilled foods Increased: Higher sales absorbed higher costs associated with spending on advertising expensesFrozen foods Increased: Higher sales absorbed higher costs associated with spending on advertising expensesYORK Decreased: Due to spending on advertising expenses, etc.CISCO: Decreased BonChi: Decreased KOIKE-YA: Increased due to newly consolidatedOverseasBusinessDomestic Others+1.0 The Americas(1.4)(Forex+0.2)U.S. Decreased: Decreased due to soaring raw material costs, distribution costs and personnel costs (Incl. Forex impact -30 Mil. yen)Mexico Increased: Increased due to higher sales of CUP NOODLES and price revisions, which offset higher raw material costs(Incl. Forex impact -40 Mil. yen)Brazil Increased: Increased due to higher sales volume and price revisions, which offset the ongoing sharp rise in prices of main raw materials (Incl. Forex impact +0.14 Bil. yen)China (incl. H.K.)+0.4 (Forex+0.4)Hong Kong: Decreased due to soaring raw material costs (Incl. Forex impact +50 Mil. yen)Mainland China: Increased due to higher sales volume of cup-type instant noodles (Incl. Forex impact +0.32 Bil. yen)AsiaEMEA+0.0 (Forex+0.0)(1.3)(Forex+0.0)Other reconciliationsGroup expensesFY 3/2022 3Q Core OP43.5 +0.0 (0.4)(2.3)(Forex+0.6)By descending order of profit (excluding companies accounted for using the equity method)Thailand: Increased due to higher sales of high-priced products, despite soaring raw material costs (Incl. Forex impact +10 Mil. yen)Singapore: Decreased mainly due to increased sales promotion expenses (Incl. Forex impact +20 Mil. yen)Indonesia: Increased due to higher sales of high-priced products, despite soaring raw material costs (Incl. Forex impact +10 Mil. yen)Vietnam: In red, but profits increased from previous period (Incl. Forex impact -10 Mil. yen)India: In red, profits decreased from previous period (Incl. Forex impact -20 Mil. yen)Gain (loss) on investments accounted for using the equity method:Thai President Foods 1.9 Bil. yen (YoY: -0.3 Bil. yen, -13% (Incl. Forex impact +20 Mil. yen))NISSIN-UNIVERSAL ROBINA 0.8 Bil. yen (YoY: +0.1 Bil. yen, +15% (Incl. Forex impact +30 Mil. yen)) EMEA: Decreased due to soaring raw material costs (Incl. Forex impact +40 Mil. yen)Gain (loss) on investments accounted for using the equity method: Mareven Food Holdings +0.1 Bil. yen (YoY: -1.2 Bil. Yen (Incl. Forex impact -0.0 Bil. yen)) * Comments and year-on-year change figures in Main Factors in the Americas, China (Incl. H.K.), Asia and EMEA segments are based on core OP on a local currency basis.9Situation of Price RevisionsImplement price revision in both Domestic Business and Overseas Business in order to respond to soaring raw material prices, etc.Domestic BusinessOverseas Business◆ NISSIN FOOD PRODUCTS• Date: From shipments on June 1, 2022• Rate: 5 to 12% of the suggested retail price•Products: Bag-type instant noodles, cup-type instant noodles, instant cup rice, instant cup soup◆ NISSIN CHILLED FOODS• Date: From delivery on March 1, 2022• Rate: 6 to 12% increase over manufacturer’s suggested retail price•Products: Various chilled noodlesPrices of some products will remain unchanged◆ The AmericasU.S.• Date: (1) May 2021 (2) January 2022•Products: (1)(2)Bag-type instant noodles, cup-type MexicoInstant noodles• Date: (1) May 2021 (2)June 2021Products: (1) Exports (2)MT*•Brazil• Date: (1) July 2021 (2) February 2022•Products: (1)Bag-type instant noodles (2) Bag-type instant noodles, cup-type instant noodles◆ NISSIN FROZEN FOODS• Date: From delivery on March 1, 2022• Rate: 6 to13% increase in shipment price•Products: Part of frozen noodles products◆ KOIKE-YA• Date: February 1, 2022 and April 1, 2022• Rate: About 6 to 11%•Products: Potato chips and other productsExcept for some products* MT(Modern Trade): Supermarkets and convenience stores, etc.• Date: From March 2022•Products: DEMAE ICCHO, CUP NOODLES, etc.◆ China Mainland China◆ AsiaIndonesia• Date: April 2021•IndiaProducts: Gekikara, CUP NOODLES, U.F.O.• Date: (1)October 2021 (2) January 2022•Products: (1)Top Ramen (2)CUP NOODLES mini10Sustainability TopicsWellnessCommitted to bring “Nutritional Improvement” and “Sustainable Food System” to action at TOKYO NUTRITION FOR GROWTH SUMMIT 2021*Wellness ProductPromote the health and nutritional properties of all our products and expandThe Founder’s SpiritFood Allergen TestDevelopment of simultaneous testing method for allergenic recommended labeling itemsBased Meat Alternati-vesIncrease use of plant proteins in instant noodlesFood Loss and WasteTotal waste reduction of 50% in domestic sales and distributionESG RatingSelected to be a constituent of the Dow Jones Sustainability Indices (DJSI) World Index for the Second Consecutive YearThe DJSI is a global stock index in the field of ESG. It measures the sustainability performance of companies from the perspective of financial performance and ESG practices. Recognized for achievement in “Health and nutrition,” “Environment report,” “Climate change strategies,” and “Social contribution and charitable activities”DJSI Asia Pacific Index is an index composed of leading companies in the Asia Pacific region. Selected for the fourth consecutive year, since 2018* This is an international conference where leaders from national governments, international organizations, businesses, and civil society groups discuss a wide range of issues related to improving nutrition for people around the world under the themes of health, food, and resilience, to deepen a common understanding of future directions for action, and to promote efforts to solve the world’s nutrition challenges. The third edition of the Tokyo Nutrition Summit 2021 was held in Tokyo on Tuesday, December 7 and Wednesday, December 8.Tokyo Nutrition Summit 2021 Official WebsiteTranslated with www.DeepL.com/Translator (free version) https://n4g-tokyo2021.jp/11AppendixI.II.III.FY 3/2022 3Q: Revenue and Core OP of Existing BusinessesContribution by Segment (Management accounting basis)FY 3/2022 Plan: Analysis of Core OP Forecasts of Existing BusinessesSustainability Information・・・・・・・・・・・ P13・・・・・・・ P15-16・・・・・・・・・・・ P18Revenue and Core OP of Existing Businesses Contribution by Segment (Management accounting basis)Revenue360.3 Bil. yenCore OP of Existing Businesses FY 3/2021 3Q Core OP:Less COVID-1936.7 Bil. yenNISSIN FOOD PRODUCTS+4.3 FY 3/2021 3Q Revenue:Less COVID-19NISSIN FOOD PRODUCTSMYOJO FOODSChilled / frozen foodsand beveragesDomesticInstant NoodlesBusinessDomestic Non-InstantNoodles BusinessDomestic OthersThe AmericasChina (incl. H.K.)AsiaEMEAOverseasBusiness+ 5.6 + 1.3 + 3.9 (1.9)+ 15.4 + 2.0 + 1.4 + 1.8 Confectionery+ 27.4 FY 3/2022 3Q Revenue:Constant currency basisFY 3/2022 3Q Revenue:Institutional accounting basis417.1 424.8 Forex impact+ 7.7 * Please refer to P7 and P9 for the factors of increase/decrease.DomesticInstant NoodlesBusinessDomestic Non-InstantNoodles BusinessOverseasBusinessMYOJO FOODSChilled / frozen foodsand beveragesConfectioneryDomestic OthersThe AmericasChina (incl. H.K.)AsiaEMEAOther reconciliationsGroup expensesFY 3/2022 3Q Core OP:Constant currency basisForex impactFY 3/2022 3Q:Institutional accounting basis+0.1 +0.8 +0.6 +1.0 +0.1 +0.6 +0.1 (1.1)+0.0 (0.4)+0.6 1342.9 43.5 AppendixI.II.III.FY 3/2022 3Q: Revenue and Core OP of Existing BusinessesContribution by Segment (Management accounting basis)FY 3/2022 Plan: Analysis of Core OP Forecasts of Existing BusinessesSustainability Information・・・・・・・・・・・ P13・・・・・ P15-16・・・・・・・・・・・ P18Analysis of Core OP Forecasts of Existing Businesses (vs FY 3/2021, planned constant currency basis, including C-19 impact)Bil. yenIncreaseDecrease(1.5)Major Factors : DomesticMajor Factors: Overseas+2.3etc.- Decreased due to impact of COVID-19, + Increase in sales, mainly in China (incl. H.K.), the Americas and Asia, etc.Disclosed on November 5, 2021Reprinted materials for “Financial Results for FY 3/2022 2Q”A： Revenue(including the impact of change in selling expense ratio)Increase/decrease ofmarginal profitB： CoGS ratioC： Distribution cost ratioD： Depr. & amort.Increase/decrease offixed expensesE： Ad. expensesF： G&A expensesG： Gain (loss) on investment accounted for using the equity methodH： Impact relating tobusiness combinationOthers(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(0.1)(0.5)(0.1)(0.8)+0.1+0.0+0.4(1.0)(2.7)(1.2)(0.4)+0.1+0.9+0.0- Higher distribution costs, etc.- Equipment renewal, etc.- Increase in advertising expenses in Americas and China (incl. H.K.), etc.- Increase due to impact of COVID-19, – Increase due to impact of COVID-19 etc.mainly in China (incl. H.K.), etc.Increase/decreasein core OP of existing businesses(Planned constant currency basis*)(4.4)*In addition to the above, there is a year-on-yeardifference in “Reconciliations” of -1.0 Bil. yen.【Method of calculating increase/decrease factors】① Marginal Profit（A,B,C）= (Revenue in the current fiscal year x Ratio of revenue in the previous fiscal year)– Expenses in the current fiscal year.* The analysis of marginal profit is based on the amount obtained by adding selling expenses to revenue.* The actual average exchange rates for the April-March period of FY 3/2021 are applied under planned constant currency basis.* The amount of Depr. & amort. and G&A expenses has been changed since the current 2nd quarter.② Fixed Costs （D,E,F）③ Others（G）（H）= Expenses in the previous fiscal year – Expenses in the current fiscal year.= Results in the previous fiscal year – Forecasts in the current fiscal year.= Forecast of core operating profit of newly consolidated company for the current fiscal year-Results of core operating profit of newly consolidated company for the previous fiscal year from the time of business combination.1515FY 3/2022 Forecasts by SegmentAiming for significant growth beyond FY 3/2021 performance (excluding COVID-19 impact) across many segmentsDisclosed on November 5, 2021Reprinted materials for “Financial Results for FY 3/2022 2Q”* China (Incl. H.K.) strategy and related targets, financial results forecasts are established independently by NISSIN FOODS HOLDINGS. Disclosure may differ from that of NISSIN FOODS CO., LTD. (Located in H.K.)=47.0-52.4+1.0=(4.4)16Revenue (IFRS)Core Operating Profit (Non-GAAP)PY (FY 3/2021 Results)PY (FY 3/2021 Results)RevenueC-19ImpactLessC-19YoY changeOPOtherIncomeandExpenseCoreOPC-19ImpactLessC-19YoY ChangeNISSIN FOOD PRODUCTS207.0 205.6 2.8 202.8 + 4.2 + 2.1% 28.032.2 0.2 32.0 5.3 26.6 + 1.4 + 5.1% MYOJO FOODS37.5 37.6 1.4 36.2 + 1.3 + 3.6% 2.43.2 0.1 3.1 1.0 2.1 + 0.3 + 13.5% Instant noodles244.5 243.2 4.2 239.0 + 5.5 + 2.3% 30.435.4 0.3 35.1 6.3 28.8 + 1.6 + 5.7% Chilled / frozen foods and beverages 77.0 77.7 1.8 75.9 + 1.1 + 1.5% 3.03.6 0.2 3.4 0.9 2.5 + 0.5 + 19.7% Confectionery 65.0 41.1 0.6 40.5 + 24.5 + 60.4% 3.12.6 0.0 2.6 0.2 2.3 + 0.8 + 34.0% Domestic others2.5 3.3 (1.4)4.7 (2.2)(46.8%)1.00.8 0.0 0.8 0.2 0.6 + 0.4 + 60.2% Domestic total389.0 365.3 5.2 360.1 + 28.9 + 8.0% 37.542.5 0.5 41.9 7.7 34.2 + 3.3 + 9.6% The Americas74.0 70.9 9.6 61.3 + 12.7 + 20.8% 3.94.0 0.0 4.0 1.8 2.2 + 1.7 + 75.3% China (incl. H.K.)55.0 48.2 0.5 47.6 + 7.4 + 15.5% 5.55.8 0.2 5.5 0.5 5.0 + 0.5 + 9.9% Asia13.5 12.7 0.1 12.5 + 1.0 + 7.9% 4.64.1 0.1 4.0 0.1 4.0 + 0.6 + 16.0% EMEA8.5 9.1 1.0 8.1 + 0.4 + 4.6% 1.51.9 0.0 1.8 0.4 1.5 + 0.0 + 2.1% Overseas total151.0 140.8 11.3 129.5 + 21.5 + 16.6% 15.515.7 0.3 15.5 2.8 12.7 + 2.8 + 22.4% Domestic and Overseas Total540.0 506.1 16.5 489.6 + 50.4 + 10.3% 53.058.2 0.8 57.4 10.5 46.9 + 6.1 + 13.1% Other reconciliations4.0 4.1 (0.1)0.0 (0.1)Group expenses(4.9)0.0 (4.9)0.0 (4.9)Existing Businesses540.0 506.1 16.5 489.6 + 50.4 + 10.3% 47.057.3 4.9 52.4 10.5 41.9 + 5.1 + 12.2% (2.5)(0.7)- ~ (4.5)~ (2.7)- 44.5+ 4.4 + 11.0% ~ 42.5~ + 2.4 ~ + 6.0% – Bil. YenFY3/2022ForecastFY3/2022Forecast(6.0)(1.0)(1.8)0.0 (1.8)Consolidated540.0 506.1 16.5 489.6 + 50.4 + 10.3% New Businesses(1.8)0.0 55.5 4.9 50.6 10.5 40.1 AppendixI.II.III.FY 3/2022 3Q: Revenue and Core OP of Existing BusinessesContribution by Segment (Management accounting basis)FY 3/2022 Plan: Analysis of Core OP Forecasts of Existing BusinessesSustainability Information・・・・・・・・・・・ P13・・・・・・・ P15-16・・・・・・・・・・・ P18NISSIN FOODS Group’s Major Sustainability InitiativesStrengthening the resilience of corporate operations through comprehensive initiatives13CUP NOODLE with Environmentally Friendly in MindContainer packaging materialsUse of biomass plasticsElimination of plastic lid stopperMaterialNoodlesSoupUse for such as Nazoniku and Hoboika alternative food technologySustainable use of palm oil24Participate in alliances and initiatives aimed at solving environmental problemsCLOMASBTi***Selection of “DJSI” “FTSE” as a leading indicator for ESG-investmentDJSI Dow Jones Sustainability indexSelected as a constituent of the “FTSE4Good Index Series,” “FTSE Blossom Japan Index”***Disclosure of TCFD FrameworkDisclose the impact of climate change on our companyhttps://www.nissin.com/en_jp/sustainability/environment/policy/risk/18Company plans, business forecasts, strategies, and other information contained in this document are based on management judgments derived from information available at the time of this publication. Be aware that these are only future projections, and actual results may differ due to various risks and uncertainties. These risks and uncertainties include intensifying price competition in the market, changes in economic trends surrounding the business environment, exchange rate fluctuations, and significant market fluctuations in the capital markets.The purpose of this document is only to provide information for reference in making investment decisions, and is not a solicitation for investment. Use your own judgment when selecting stocks and making final investment decisions.• These presentation materials are available in PDF format at our official website, under Financial Statements & Presentation Materialshttps://www.nissin.com/en_jp/ir/library/materials/• Figures in this document are calculated to the thousands of yen, rounded to the nearest hundred million yen. Therefore, detailed calculations and total amounts may not agree• As a general rule, fiscal years in this document run from April 1, 20YY through March 31, 20YY, and may be written as FY 3/20YY or FYYY• Results from China (Incl. H.K.) are based on the consolidation policy of NISSIN FOODS HOLDINGS. Disclosure may differ from that of NISSIN FOODS CO., LTD. (Located in H.K.) .) China (Incl. H.K.) strategy and related targets, financial results forecasts are established independently by NISSIN FOODS HOLDINGS