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

Financial Results for FY 3/2022Announced on May 13, 2022NISSIN FOODS HOLDINGS CO., LTD.(TSE Stock Code: 2897)*Added page 33~37 and revised page 38 and 39 to pare with the press release on May 16th regarding launch of KANZEN MEAL brands from May 30th.Financial Results Presentation: May 16, 2022I.FY 3/2022 Financial Results and FY 3/2023 Forecasts…………… P3~16Takashi Yano, Executive Officer and CFOII. Progress of Mid- to Long-Term Growth Strategy Koki Ando, Representative Director, President and CEONoritaka Ando, Executive Vice President & Representative Director, COO, and President & Representative Director of NISSIN FOOD PRODUCTS CO., LTD.…………… P18~39Appendix1FY 3/2022 Financial Results 2FY 3/2022 Financial Results HighlightsRevenue569.7 Bil. yen+12.6% 557.9 Bil. yen + 13.9% 540.0 Bil. yen Institutional accounting basisConstant currency basis*1YoYYoY*2FY 3/2022 Forecasts*149.6 Bil. yen(5.4%)48.7 Bil. yen+ 16.3%47.0 Bil. yen+ 12.2%Core Operating Profit ofExisting BusinessesDomestic Instant Noodles BusinessDomestic Non-Instant Noodles BusinessOverseas BusinessSummary(6.0%)+7.5%(12.0%)+ 14.7%+ 33.4%+ 0.8%YoY*2+ 10.3%+ 5.7%+ 26.5%+ 22.4%(Institutional accounting basis)• Revenue: Posted record-high 569.7 billion yen in revenue, with all three businesses recording increases, and a 12.6% improvement in consolidated revenue• Core Operating Profit of Existing Businesses: Achieved steady growth compared to FY 3/2020*3; however, profit decreased due to raw materials price hikes and a negative rebound from the impact of COVID-19 in the previous fiscal year(Management accounting basis, less COVID-19) First year of Make a Fresh Start showed steady progress• Revenue: Achieved 540.0 billion yen in revenue, with all three businesses recording increases, and a 13.9% improvement in consolidated revenue• Core Operating Profit of Existing Businesses: All three businesses increased their profits, and overall consolidated operating profit grew by 16.3%, achieving the forecast of 47.0 billion yen*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 +6.7 Bil. yen (+15.5%) 3Consolidated Financial SummaryExecuted strategies in a steady manner, and combined with the impact of making KOIKE-YA a consolidated subsidiary, resulted in record sales. Profits decreased due to soaring prices of raw materials and a negative rebound from the impact of COVID-19 in FY 3/2021. However, maintain higher growth compared to FY 3/20204vs. FY 3/2020AmountRatioCAGRAmountRatioRevenue569.7 + 63.6 + 12.6% + 10.2% 557.9 + 17.9 + 3.3% Core operating profitof existing businesses49.6 (2.8) (5.4%) + 7.5% 48.7 + 1.7 + 3.6% Operating profit46.6 (8.9) (16.1%) + 6.3% 45.8 + 1.3~ + 3.3+ 2.9%~ + 7.8%Profit attributable to owners ofthe parent35.4 (5.4) (13.3%) + 9.9% 34.9 + 1.9~ + 3.9+ 5.7%~ + 12.6%Core OP margin of existingbusinesses8.7% (1.7pt)8.7% + 0.0pt OP margin8.2% (2.8pt)8.2% (0.0pt)~ + 0.3ptProfit attributable to owners ofthe parent margin6.2% (1.9pt)6.3% + 0.1pt~+ 0.5ptBil. yenFY 3/2022FY 3/2022Institutional accounting basisYoY changeConstant currency basisvs. ForecastsFinancial Summary by SegmentRevenue continued to grow at a high rate, and all three businesses achieved significant increases in revenue. Core operating profit of existing businesses declined due to the impact of rising costs in major areas, including raw materialsRevenue： 569.7 Bil. yen YoY ： +63.6 Bil. yen+12.6％Consolidated(Institutional accounting basis)Core Operating Profit of Existing Businesses：49.6 Bil. yenYoY ：(2.8) Bil. yen(5.4%)Domestic Instant Noodles BusinessDomestic Non-Instant Noodles BusinessOverseas BusinessRevenue increased due to strong performance of NISSIN FOOD PRODUCTS and MYOJO FOODSProfits decreased due to the impact of COVID-19 in the previous fiscal year (CAGR +5.1% vs FY 3/2020)Revenue： 248.7 Bil. yenRevenue increased and profit decreased in the Chilled/Frozen Foods and Beverages Business, even with higher revenue in the Chilled/Frozen Foods Business, due to the impact of COVID-19 in the previous fiscal yearRevenue and profit increased in the Confectionery Business due to the impact of KOIKE-YA, consolidated into the group in December 2020 (revenue increase, even if excluding KOIKE-YA)Revenue： 149.9 Bil. yenRevenue increased across all regions (driven by the Americas and China)Profit decreased due to negative rebound from COVID-19 and an inability to absorb cost increases, mainly in the Americas (CAGR +2.1% vs. FY 3/2020)Revenue： 168.9 Bil. yenYoY： +5.5 Bil. yen, 2.3％YoY： +31.1 Bil. yen, 26.2％YoY： +28.1 Bil. yen, 20.0％Core OP： 33.0 Bil. yenCore OP： 6.4 Bil. yenCore OP： 13.6 Bil. yenYoY： (2.1) Bil. yen, (6.0%)YoY： +0.4 Bil. yen, +7.5%YoY： (1.8) Bil. yen, (12.0%)5Revenue Results by SegmentNearly all segments met revenue growth and earnings forecasts, driven by the domestic Non-Instant Noodles Business (with the added impact of making KOIKE-YA a consolidated subsidiary) and Overseas Business, which posted double-digit growth* 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 3/2020AmountRatioCAGRAmountRatioNISSIN FOOD PRODUCTS210.8 + 5.2 + 2.5% + 2.3% 210.8 + 3.8 + 1.8% MYOJO FOODS37.9 + 0.4 + 1.0% + 1.9% 37.9 + 0.4 + 1.1% Domestic Instant Noodles Business248.7 + 5.5 + 2.3% + 2.3% 248.7 + 4.2 + 1.7% Chilled / frozen foods and beverages 80.9 + 3.2 + 4.1% + 5.5% 80.9 + 3.9 + 5.0% Confectionery 69.0 + 27.9 + 68.0% + 60.9% 69.0 + 4.0 + 6.2% Domestic Non-Instant Noodles Business149.9 + 31.1 + 26.2% + 22.9% 149.9 + 7.9 + 5.6% Domestic Others2.2 (1.2) (35.0%) (27.3%) 2.2 (0.3) (13.1%) Domestic Business total400.8 + 35.5 + 9.7% + 8.4% 400.8 + 11.8 + 3.0% The Americas87.3 + 16.5 + 23.2% + 15.1% 81.5 + 7.5 + 10.2% China (incl. H.K.)55.5 + 7.3 + 15.2% + 13.5% 50.7 (4.3) (7.9%) Asia14.8 + 2.1 + 16.8% + 14.6% 14.2 + 0.7 + 4.9% EMEA11.4 + 2.3 + 24.9% + 23.7% 10.8 + 2.3 + 26.7% Overseas Business total168.9 + 28.1 + 20.0% + 15.0% 157.1 + 6.1 + 4.1% Consolidated 569.7 + 63.6 + 12.6% + 10.2% 557.9 + 17.9 + 3.3% vs. ForecastsBil. yenInstitutional accounting basisConstant currency basisFY 3/2022YoY changeFY 3/2022Revenue Contribution by Segment (YoY, Institutional accounting basis)FY 3/2021 Revenue506.1 Bil. yenMajor Factors* DomesticInstant NoodlesBusinessNISSIN FOODPRODUCTSMYOJO FOODSChilled / frozen foodsand beveragesDomestic Non-InstantNoodles Business+ 5.2 + 0.4 + 3.2 Confectionery+ 27.9 Domestic Others(1.2)The Americas+ 16.5 (Forex+5.8)OverseasBusinessChina (incl. H.K.)+ 7.3 (Forex+4.8)(+3%) Cup type: CUP NOODLE PRO, CUP NOODLE KARAMEN, DONBEI and U.F.O. performed well.Bag type: RAOH and BAKURETSU KARAMEN performed steadily. Others: The rice category, including CURRY MESHI and OSHAMESHI, performed well.(+1%) Cup type: MYOJO IPPEICHAN YOMISE NO YAKISOBA and MYOJO CHUKA ZANMAI performed well. New product MYOJO KOIZE IPPEICHAN BIG also contributed.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 (+5%): Ramen products such as GYORETSU NO DEKIRU MISE NO RAMEN, MAZEMEN NO TATSUJIN and YUMEITEN seriesperformed well.Frozen foods (+6%): Commercial products such as NISSIN MOCHITTO NAMA PASTA and NISSIN CHUKA SHIRUNASHI TANTANMEN OMORI, etc. continued to perform well.YORK (-1%): Despite strong performance by the newly launched PILKUL 400, revenue was down slightly year on year due to the negative rebound in demand from the COVID-19 pandemic in the previous fiscal year.CISCO (+3%): GORO GURA series continues to trend well. BonChi (+5%): Sales of KARASHI MENTAIKO OGATA AGESEN, AJIKARUTA and KAISEN AGESEN series, etc. were strong. KOIKE-YA: Rolled out 60th anniversary commemorative KOIKEYA The series and engaged in high value-added direct management (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 +2.7 Bil. yen)(YoY: Revenue +7%, Number of servings: -high-single digit % / (Jan-Mar) Revenue +low-double digit %, Number of servings +low-single digit %)Mexico: Revenue increased due in part to higher sales volume and price revisions for the mainstay products CUP NOODLES (Incl. Forex impact +0.9 Bil. yen)double digit %)Brazil: Revenue increased due to higher sales volume of mainstay products and the effects of price revisions. (Incl. Forex impact +2.2 Bil. yen) (YoY: Revenue +27%, Number of servings: +high-single digit % / (Jan-Mar) Revenue +low-double digit %, Number of servings slight increase)(YoY: Revenue +24%, Number of servings: +low-double digit % / (Jan-Mar) Revenue +low-double digit %, Number of servings +low-AsiaEMEA+63.6(Forex+11.8)+ 2.3 (Forex+0.6)+ 2.1 (Forex+0.6)Hong Kong: Cup-type instant noodles sales on a recovery trajectory, and the re-emergence of COVID-19 was also a factor in increased demand (Incl. Forex impact +1.0 Bil. yen) (YoY: Revenue +4%, Number of servings: -high-single digit%, sales composition 35.3%) Mainland China: Continued strong sales of CUP NOODLES series. (Incl. Forex impact +3.8 Bil. yen)(YoY: Revenue +6%, Number of servings: +high-single digit %, sales composition 64.7%) 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 +0.2 Bil. yen) Indonesia: Increased (Incl. Forex impact +0.1 Bil. yen)Vietnam: Increased (Incl. Forex impact +30 Mil. yen)EMEA: CUP NOODLES, Soba and Demae Ramen brands performed well. (Incl. Forex impact +0.6 Bil. yen)7FY 3/2022 Revenue569.7 * 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 SegmentDomestic Instant Noodles Business and Overseas Business declined due to raw materials price hikes and negative rebound from the impact of COVID-19 in FY 3/2021. On the other hand, performance of the Domestic Business and China (incl. H.K.) met forecast due to the impact of higher sales, etc.* 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 3/2022vs. FY 3/2020Core OPAmountRatioCAGRAmountRatioNISSIN FOOD PRODUCTS30.8 0.3 30.6 (1.4)(4.4%) + 5.4% 30.6 + 2.6 + 9.2% MYOJO FOODS2.4 0.0 2.4 (0.7)(22.8%) + 1.1% 2.4 + 0.0 + 0.3% Domestic Instant Noodles Business33.3 0.3 33.0 (2.1)(6.0%) + 5.1% 33.0 + 2.6 + 8.5% Chilled / frozen foods and beverages 3.4 0.2 3.3 (0.1)(4.4%) + 44.6% 3.3 + 0.3 + 9.0% Confectionery 3.3 0.1 3.2 + 0.6 + 23.3% + 39.2% 3.2 + 0.1 + 1.9% Domestic Non-Instant Noodles Business6.7 0.3 6.4 + 0.4 + 7.5% + 41.8% 6.4 + 0.3 + 5.4% Domestic Others1.9 (0.0)1.9 + 1.0 + 122.8% + 0.3% 1.9 + 0.9 + 86.8% Domestic Business total41.8 0.6 41.3 (0.6)(1.5%) + 8.7% 41.3 + 3.8 + 10.1% The Americas3.0 0.0 2.9 (1.1)(27.2%) (15.5%) 2.7 (1.2)(30.3%) China (incl. H.K.)6.0 (0.1)6.1 + 0.6 + 10.9% + 14.6% 5.6 + 0.1 + 1.6% Asia3.5 (0.5)4.1 + 0.1 + 1.7% + 14.2% 4.0 (0.6)(12.0%) EMEA0.5 0.1 0.4 (1.4)(76.9%) (38.0%) 0.4 (1.1)(72.6%) Overseas Business total13.1 (0.5)13.6 (1.8)(12.0%) + 2.1% 12.8 (2.7)(17.7%) Domestic and Overseas Businesses total 55.0 0.1 54.9 (2.5)(4.3%) + 7.0% 54.0 + 1.0 + 2.0% Other reconciliations (0.2)(0.2)0.0 + 0.1 -(3.4%) 0.0 Group expenses (5.4)-(5.4)(0.5)–(5.4)Existing Businesses 49.4 (0.1)49.6 (2.8)(5.4%) + 7.5% 48.7 + 1.7 + 3.6% New Businesses (2.8)0.1 (2.9)(1.1)–(2.9) (0.4)~ + 1.6-Consolidated 46.6 (0.0)46.6 (4.0)(7.8%) + 5.0% 45.8+ 1.3~ + 3.3+ 2.9%~ + 7.8%Bil. yenOPOther Incomeand ExpenseYoY changeFY 3/2022vs. ForecastsConstant currency basis-Institutional accounting basis+ 0.7 DomesticInstant NoodlesBusinessDomestic Non-InstantNoodles BusinessOverseasBusinessExisting Businesses Contribution to Core OP by Segment (YoY, Institutional accounting basis)FY 3/2021 Core OP52.4 Major Factors*Bil. yenNISSIN FOOD PRODUCTS(1.4)+) Increased in operating profit due to increased sales, product mix, etc.- ) Increased in raw material costs, depreciation (equipment renewal, etc.), etc.MYOJO FOODSChilled / frozen foodsand beveragesConfectionery(0.7)(0.1)+0.6 Domestic Others+1.0 The Americas(1.1)(Forex+0.2)China (incl. H.K.)+0.6 (Forex+0.6)AsiaEMEA+0.1 (Forex+0.0)(1.4)(Forex+0.0)Other reconciliationsGroup expensesFY 3/2022 Core OP49.6 +0.1 (0.5)(2.8)(Forex+0.8)+) Increased in operating profit due to increased sales and decreased in advertising expenses, etc.- ) Increased in raw material costs, sales promotion expenses and depreciation, etc.Chilled foods Increased: Increase in raw material costs and advertising expenses absorbed by sales growth.Frozen foods Decreased: Although revenue increased due to higher sales, operating profit decreased due to a higher cost of sales ratioYORK Decreased: Slight decrease (essentially level) due to advertising expenses and a negative rebound in demand from the COVID-19 pandemic in the previous fiscal yearCISCO: Decreased BonChi: Decreased KOIKE-YA: Increased due to newly consolidatedU.S. Decreased: Decreased due to soaring raw material costs, distribution costs and personnel costs (Incl. Forex impact -20 Mil. yen)Mexico Increased: Increased due to higher sales and price revision of CUP NOODLES (Incl. Forex impact +50 Mil. yen)Brazil Increased: Increased due to higher sales volume and price revisions, which offset the ongoing sharp rise in prices of mainraw materials (Incl. Forex impact +0.2 Bil. yen)Hong Kong Decreased: Decreased due to soaring raw material costs (Incl. Forex impact +90 Mil. yen)Mainland China Increased: Increased due to higher sales volume of cup-type instant noodles despite soaring raw material prices (Incl. Forex impact +0.48 Bil. yen)By descending order of profit (excluding companies accounted for using the equity method)Thailand Increased: Increased, despite soaring raw material prices, due to more sales of high-priced products and lower sales promotion expenses (Incl. Forex impact +10 Mil. yen)Singapore Increased: Increased as higher sales promotion expenses were absorbed by sales growth (Incl. Forex impact +20 Mil. yen)Indonesia Increased: 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 the previous fiscal year (Incl. Forex impact -30 Mil. yen)Gain (loss) on investments accounted for using the equity method:Thai President Foods 2.5 Bil. yen (YoY: -0.3 Bil. yen, -12% (Incl. Forex impact +10 Mil. yen))NISSIN-UNIVERSAL ROBINA 1.1 Bil. yen (YoY: +0.1 Bil. yen, +12% (Incl. Forex impact +40 Mil. yen)) EMEA: Decreased due to soaring raw material costs (Incl. Forex impact +10 Mil. yen)Gain (loss) on investments accounted for using the equity method: Mareven Food Holdings +0.1 Bil. yen (YoY: -1.2 Bil. yen (No Forex impact))* Comments in Main Factors in the Americas, China (Incl. H.K.), Asia and EMEA segments are based on core OP on a local currency basis.9Analysis of Core OP of Existing Businesses (YoY, Institutional accounting basis)DecreaseBil. yenIncrease+1.1Major Factors: DomesticMajor Factors: Overseas+Increase in Instant Noodles Business + Increased in revenue across all regions, +13.2revenue, etc.- Increase in selling expense ratio, etc.etc. (Including the impact of the Americas price revisions)Increase/decrease ofmarginal profitB： CoGS ratio(1.9)(9.2)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 methodOthersH： Others*(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)(Domestic)(Overseas)+0.3+0.5+0.2+2.0(1.3)(1.0)(1.0)(1.2)(2.4)(0.4)(1.4)(0.6)(1.8)+ Product mix, etc.- Ongoing increases in raw material prices, – Increased due to soaring raw materials costs across all regions, etc.+ Distribution efficiency improvement, etc.- Rising distribution costs, etc.the U.S., etc.- Increased in distribution costs, mainly in – Increased due to renewal of equipment, – Increased in China (Incl. H.K.) and the Americas, etc.etc.etc.- 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.- Impact of COVID-19 in the previous fiscal year, etc.- Impact of KOIKE-YA (Equity method)(The previous fiscal year: 11 months, the current fiscal year: -) + Increase/decrease in the Domestic Others segment and impact of KOIKE-YA (Consolidated subsidiary)(The previous fiscal year: 4 months, the current fiscal year: 12 months) Increase/decreasein core OP of existing businesses**(Domestic)(Overseas)* Increase/decrease in core operating profit in the Domestic Others segment and the impact of business combinations are included in H: Others** In addition to the above, there is a year-on-year difference 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.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 the Domestic Others segment and newly consolidated company for the current fiscal year.* The analysis of marginal profit is based on the amount obtained by adding selling expenses to revenue.1010FY 3/2023 Forecasts11Full-Year Consolidated Earnings Forecasts for FY 3/2023 (Excluding Russia/Ukraine impact)Aiming for 52.0 billion yen in core operating profit of existing businesses. We expect IFRS operating profit to be between 47.0 billion yen and 49.5 billion yen, driven by ongoing aggressive investment in new businessesRevenue595.0 Bil. yen• In principle this is revenue from existing businessesCore Operating Profit ofExisting Businesses• Does not include impact of the situation in 52.0 Bil. yenRussia/Ukrainedigits)• Equivalent to +5% growth (considered mid-single Operating Profit 47.0 ~ 49.5 Bil. yenProfit attributable to owners of the parent31.0 ~ 33.0 Bil. yenbasisEPS303 ~ 322 Yen/Share• New business investment at 5% to 10% of coreoperating profit of existing businesses• We do not expect other income/expenses (impairment or extraordinary gains, etc.)• As with operating profit, we are forecasting on a range • Number of shares (excluding treasury shares): 102 million shares assumed• However, we continue to explore opportunistic acquisitions of treasury shares* Yen-based presentation of earnings forecasts are based on actual exchange rates for FY 3/202212FY 3/2023 Forecasts by SegmentAim for increase revenues and operating profits in all business segments from FY 3/2022 results* China (Incl. H.K.) strategy and related targets, financial results forecasts are established independently by NISSIN FOODS HOLDINGS. 13Revenue (IFRS)FY 3/2022 ResultsRevenueYoY changeCore OPYoY changeNISSIN FOOD PRODUCTS218.0 210.8 + 7.2 + 3.4% 31.530.6+ 0.9 + 3.0% MYOJO FOODS39.0 37.9 + 1.1 + 2.8% 2.52.4+ 0.0 + 1.8% Domestic Instant Noodles Business257.0 248.7 + 8.3 + 3.3% 34.033.0+ 1.0 + 2.9% Chilled / frozen foods and beverages 83.0 80.9 + 2.1 + 2.6% 3.53.3+ 0.2 + 5.5% Confectionery 71.5 69.0 + 2.5 + 3.6% 3.63.2+ 0.4 + 14.0% Domestic Non-Instant Noodles Business154.5 149.9 + 4.6 + 3.1% 7.16.4+ 0.6 + 9.7% Domestic Others2.5 2.2 + 0.3 + 15.1% 1.01.9(0.9) (46.5%) Domestic Business total414.0 400.8 + 13.2 + 3.3% 42.041.3+ 0.7 + 1.7% The Americas93.5 87.3 + 6.2 + 7.1% 3.52.9+ 0.6 + 18.8% China (incl. H.K.)59.0 55.5 + 3.5 + 6.3% 6.56.1+ 0.4 + 5.7% Asia17.0 14.8 + 2.2 + 15.0% 4.64.1+ 0.5 + 11.3% EMEA11.5 11.4 + 0.1 + 1.2% 1.40.4+ 1.0 + 228.6% Overseas Business total181.0 168.9 + 12.1 + 7.1% 16.013.6+ 2.3 + 17.2% Domestic and Overseas Businesses total 595.0 569.7 + 25.3 + 4.4% 58.054.9+ 3.1 + 5.6% Other reconciliations (5.4)Group expenses 0.0Existing Businesses 595.0 569.7 + 25.3 + 4.4% 52.049.6+ 2.4 + 4.9% (2.5)+ 0.4 ~ (5.0) ~ (2.1)47.0+ 0.4+ 0.8% ~ 49.5 ~ + 2.9 ~ + 6.1%Core Operating Profit (Non-GAAP)FY 3/2022 Results- (6.0)+ 25.3+ 4.4% 46.6Consolidated (0.6) – (2.9)Bil. yenFY 3/2023ForecastsFY 3/2023ForecastsNew Businesses 595.0 569.7 FY 3/2023 Earnings Forecast Assumptions: Raw Material PricesThe FY 3/2023 plan includes raw material cost impact of 17 billion yen based on market conditions before the Russia/Ukraine situationFlour* Flour futures prices on the Chicago Commodity ExchangePalm oil* Palm oil futures prices on the Malaysian Stock Exchange◼ Overseas◼ Domestic• Cost increase to be covered by price pass-throughUSD* TTM at the end of each month• Flour：Prices will be affected after January 2023• Palm oil：The first half of the year has already been hedged◼ Foreign exchange impact• Direct foreign currency exposure is limited (Part of them has been hedged)Impact is limited due to foreign profit translation•14FY 3/2023 Consolidated Earnings Forecast: ApproachWe had planned for mid-single digit growth before the situation in Russia/Ukraine.We will assess the impact of this issue on earnings and take necessary measuresCore Operating Profit of Existing Businesses(Billions of yen, at prevailing exchange rates)Growth Under Rising UncertaintySoaring costs due to the situation in Russia/Ukraine; extreme difficulty in procuring goods and human resourcesAiming for Mid-single digit growth(Existing businesses basis)Plan for Mid-Single Digit GrowthBefore the situation in Russia/UkraineHeadwindsCOVID-1910.5Excluding COVID-1941.949.647.052.0Recovery PlanPlan～ ～ ～ ～ResultsResultsPlan• Brand power price shift• Cost reductionFY 3/2021FY 3/2022FY 3/2023Planting seeds for growth and development toward our 2030 Vision for each business～～～Strategic GoalFY 3/203115Reducing Cross-Shareholdings We continue to reduce our cross-shareholdings. With respect to the policy disclosed in May 2021, which called for a reduction of 10 billion yen over the course of two years, we achieved 7.8 billion yen in reductions during FY 3/2022, and we intend to further reduce cross-shareholdings, expecting to achieve our target during FY 3/2023Policy Disclosed in June 2020Reduce an equivalent of 20% over the next two to three years compared with FY 3/2020 ⇒ Achieved this policy ahead of schedule in May 2021 (20.1% reduction)Policy Disclosed in May 2021Reduce an equivalent of 10 billion yen over two years⇒ Making steady progress; we expect to achieve this goal during FY 3/202325.0%Balance: Billion yen20.0%80.015.0%70.060.010.0%5.0%(8.2)+19.620.7%(7.8)18.3%16.1%+9.5(6.6)14.2%+0.69.8%18.8%(1.0)+6.912.3%Ratio of cross-shareholdings to equity (right axis)Ratio of equity of domestic investments only (right axis)900Ratio to equity17.5%800700600500FY 3/2019年度末Share 株式売却SalesShare Price 株価上昇Increase （国内）(Domestic)Share Price 株価上昇Increase (Overseas)（海外）20年度末FY 3/21Share 株式売却SalesMay 21年5月2021Share 株式売却SalesShare Price 株価下落Decrease (Domestic)（国内）株価上昇Share Price Increase (Overseas)（海外）Investments出資FY 3/2221年度末16I.FY 3/2022 Financial Results and FY 3/2023 Forecasts …………… P3~16Takashi Yano, Executive Officer and CFOII. Progress of Mid- to Long-Term Growth Strategy …………… P18~39Koki Ando, Representative Director, President and CEONoritaka Ando, Executive Vice President & Representative Director, COO, and President & Representative Director of NISSIN FOOD PRODUCTS CO., LTD.Appendix17II. Progress of Mid- to Long-Term Growth Strategy Strengthen Cash GenerationCapabilities of Existing BusinessesEARTH FOOD CHALLENGE 2030Pursue New BusinessesMake a significant shift in our profit portfolio through aggressive growth in Overseas and Domestic Non-Instant Noodles Businesses, while pursuing sustainable growth A challenge to utilize finite resources effectively and reduce the impact of climate changeCo-create foods of the future with food science Become a company that provides food and health solutions through technology18Deeper Global BrandingPromote product development and marketing in response to market conditions in each area and the preferences of target customers while adhering to the core values of CUP NOODLESEMEAStrengthen brands through by tying together products, retail, and promotionsOffer fun and delicious tastes, featuring Asian BlastContinue channel expansion in major countriesFY 3/2022Global Branding InitiativesU.S.JapanAiming for mature market sustainable growth by making appeals to new valueRecord-high sales of CUP NOODLE brand for a fifth consecutive yearRevitalized the market by making new standard products meeting consumer needsAccelerate shift to premium products(expand sales of premium products further)Premium product sales composition 43%New Product – CN STIR FRY RICE with NOODLESAsiaChinaDeveloped products and executed promotions tailored to the tastes of each countryDeveloped a variety of flavors to meet the needs of customersGained brand penetration through CUP NOODLES MINIGained wider penetration of the CUP NOODLES brand by expanding sales areasContinued the high pace of sales expansion in mainland ChinaAccelerated growth via marketing strategyBrazilRoll out promotions using digital marketingUse in-store tools to expand cup product facing19Domestic Instant Noodles Business (NISSIN FOOD PRODUCTS)Three main brands contributed significantly to a revival in cup-type instant noodles. Reaffirming the value of instant noodles under inflation. Establish new prices by proposing value-added (solutions) and build a structure that enables sustainable profit generationFY 3/2022 ReviewRecord-high sales for five consecutive years Record-high sales for seven consecutive years-Market driven by mainstay brands celebrating anniversaries-◼ CUP NOODLE (50th anniversary) and DONBEI (45th anniversary) marked record sales for five and seven consecutive years, respectively. U.F.O. (45thanniversary) was the highest sales in this century◼ CUP NOODLE brands reach record-high sales-Targeting based on data analysis-◼ New value appeals in response to consumer insights, such as CUP NOODLE PRO for health-conscious consumers, CUP NOODLE KARAMENin response to the spicy food boom◼ Data-driven initiatives in collaboration with other companiesFuture TasksPolicy for Initiatives in FY 3/2023➢ Implement price revisions smoothly to improve and solidify profit structure➢ Continue to create new value through new value-added products➢ Pursue data-driven solutions further (incorporate entertainment)✓ Aim for continuous growth, even in mature markets, promote the creation of a system to ensure profitability at new prices using high-value-added products and promotions targeting customer insights2020Overseas Business: The Americas (NISSIN FOODS U.S.A)Steady implementation of shift to premium products and strong sales, including base products. Aiming to strengthen earnings base further by revising prices in anticipation of inflation and by preparing to build a stable supply chain infrastructure.◼ Aggressive introduction and development of ◼ Deepened and accelerated partnerships with FY 3/2022 Reviewpremium products−Launched new product STIR FRY RICE with NOODLES which performed well, exceeding weekly sales target per store− U.S. rollout of premium product Hot & Spicy Fire Wokmajor distributors to increase product coverage ratio− Built and strengthened win-win relationships with distributors by introducing new premium products to major distributors ahead of others, by increasing premium product lineups, and by improving category profits− Accelerated expansion of premium product coverage ratio−Implemented two price revisions◼ Increased premium product sales composition ratio−Sales (monetary) 43% of total (+4pt YoY) Cup NoodlesSTIR FRY RICE with NOODLESHot & Spicy Fire WokFuture TasksPolicy for Initiatives in FY 3/2023➢ Continue to introduce premium products with clear differentiation and superiority; enhance profitability by increasing premium sales composition ratio➢ Improve responsiveness to rapid changes in the external environment (including the absorption of cost increases) and establish a stable and sustainable supply chain structure✓ Further accelerate shift to premium products (premium sales composition ≥ 50% by FY 3/2024)✓ Strengthen supply chain structure and earnings base capable of responding to rapid changes in the external environment21Overseas Business: The Americas (NISSIN FOODS DO BRASIL LTDA.) Increases in raw material costs and other expenses continued from FY 3/2021; covered increases through sales volume based on aggressive marketing and sales measures, as well as two price revisions. We focused on value enhancement and value creation the instant noodle category as the absolute market leader.FY 3/2022 ReviewNISSIN is No.1 in all regions ranked by brand; CUP NOODLES is No.2*◼ Strengthened sales by linking marketing and sales strategies− Paid respect to and developed Japanese consumer communication− In-store impact of large facings linked to marketing measures− Sales volume exceeded the previous year levels in all areas◼ Cultivate the rapidly growing cup-type instant noodles market− Strengthen flavor lineup, launch Feijoada flavor in August− Increase awareness by linking food truck operations and retail salesFuture TasksPolicy for Initiatives in FY 3/2023➢ Focus on expanding total demand as the market leader-Drive double-digit growth of the cup-type noodles market via CUP NOODLESdemand✓ Expand production capacity to support growing ➢ Create a 1-serving/capita/year market in the export market✓ Foster a cup-type noodles culture and increase -Secure position in Argentina and Colombiaeating opportunities- Deeper and broader adoption of CUP NOODLES22* From RY21-Brazilian Association of Supermarkets (ABRAS)Overseas Business: China (Incl. H.K.)Aiming to maximize profit-earning opportunities by strengthening brands and expanding multi-category businesses in the Instant Noodles BusinessFY 3/2022 Review◼ Growth of the Instant Noodle Business⁻ Expanded sales of high-value-added products⁻ Achieved wider adoption of the CUP NOODLES brand by expanding sales areas on the mainland◼ Expansion of Non-Instant Noodles Businesses⁻ Expanded profit-earning opportunities through multi-categorization⁻Launched new products in the Frozen Foods Business and established an earnings based via in-house production➢ Intensifying competition in the mainland premium market➢ Maturation of the Hong Kong instant noodles market➢ Soaring raw material pricesFuture TasksPolicy for Initiatives in FY 3/2023✓ Expand sales network and sales area✓ Expand premium instant noodles✓ Pursue multi-categorization, including confectionery, beverage, and frozen foods businesses; introduce new products in response to changing lifestyles✓ Strengthen cost competitiveness through in-house production of packaging materials2323II. Progress of Mid- to Long-Term Growth Strategy Strengthen Cash GenerationCapabilities of Existing BusinessesEARTH FOOD CHALLENGE 2030Pursue New BusinessesMake a significant shift in our profit portfolio through aggressive growth in Overseas and Domestic Non-Instant Noodles Businesses, while pursuing sustainable growthTake on the challenge to utilize finite resources effectively and reduce the impact of climate changeCo-create foods of the future with food scienceBecome a company that provides food and health solutions through technology24MaterialitiesWe are tackling the two axes of Well-being and Sustainability to improve non-financial valueFood Safety and SecurityEnsuring food safety and security–our most important management issues–through a unique quality assurance system driven by the NISSIN Global Food Safety InstituteProviding Food and Health Solutions via TechnologyEngage in research to analyze the functions of food based in the areas of health, nutrition, and biological regulation, striving to create delicious and innovative productsChallenge to Climate Change Address climate change issues through green electricity, green ingredients, and green packaging, endeavoring to reduce CO2 emissionsChallenge to Effectively Use Resources Deal with issues that include the effective utilization of resources, aiming to source sustainably, conserve natural resources, and create a world without wasteBuilding Sustainable Supply ChainsBuild sustainable supply chains that consider the global environment and social issues such as human rights, labor environments, etc.2525Well-being&SustainabilityTOKYO NUTRITION FOR GROWTH SUMMIT 2021 Commitment1３Improve the health and nutritional properties of all products.Expand annual sales of wellness products to 23 billion yen by 2030.Develop a new testing method capable of simultaneous and highly accurate testing of all allergen-labeled products by 2030.Conduct at least 100,000 cumulative tests using this method; expand and encourage wider adoption.２４Increase the use of plant protein in instant noodles compared with animal proteins; raise use of plant proteins to 1,100 tons by 2030.Reduce total waste in distribution and sales fields in Japan by 50% by 2030 (compared with 2015).26Progress of EARTH FOOD CHALLENGE2030 100% Sustainable Palm Oil26% (previous year)2021 Results36%Water usage: 12.3 m3 / million yen or less11.3 m3 (previous year)*2021 Results*11.3㎥per million yen of revenue (IFRS basis)CO2 reduction SCOPE1+2 -30%, SCOPE3 -15%SCOPE1+2Compared with base year 2018+5.3% (previous year)438,000 t-CO2SCOPE3Compared with base year 2018+0.8% (previous year)*2021 Results +2.7%427,000 t-CO22020 Results+8.5%3,092,000 t-CO23,329,000 t-CO2Recycling rate in production process: 99.5%+Waste in sales and distribution processes: Cut by halfRecycling Rate99.6% (previous year)*2021 Results99.7%Recycling rate of waste from domestic plants (excluding general waste from business operations)Waste from sales and distribution processesAmount of waste from domestic distribution warehouses(compared with 2015)2020 Results40% reduction- 38.9%*Jan-Dec 2021 Results (before third-party verification)27Major Sustainability-Related InitiativesAiming for resilient growth through comprehensive efforts in our products and our organizationContainersPackaging MaterialsEliminated Plastic Lid StickersFirst in Japan! Edible Cultured Meat Alternative FoodTechnologiesLid stickers (plastic), reducing plastic use by roughly 33 tons per yearGovernanceSustainability CommitteeSelected for Representative IndicesESGRecognitionSustainability CommitteeCommittee Chair: Representative Director and CEOEstablished Advisory Board (Including External Experts)***“DJSI” “FTSE” “MSCI World ESG Leaders Index” “MSCI Japan ESG Select Leaders Index”* DJSI_Dow Jones Sustainability index ** “FTSE4Good Index Series”、”FTSE Blossom Japan Index”EnvironmentWorking GroupHuman Rights Working GroupPublic Relations and Education Working GroupOverseas Working GroupESG Issue Analysis Working GroupSelected for World index!28Main corporate governance organizations and compositionEnsuring management transparency by exercising supervisory functionsBoard of Directors62.5％Ratio ofOutside DirectorsManagement AdvisoryCommitteeAudit &Supervisory BoardRatio ofOutside Directors60.0％Ratio ofOutside Directors66.6％Chairperson○○TitlePresident & Representative Director, CEOExecutive Vice President & Representative Director, COODirector, CSO, and Managing Executive OfficerNameKoki AndoNoritaka AndoYukio YokoyamaKen KobayashiMasahiro Okafuji(Independent Officer)Masato Mizuno(Independent Officer)Yukiko Nakagawa(Independent Officer)Eietsu SakurabaMasahiko Sawai(Independent Officer)Naohiro Kamei(Independent Officer)Chisugi MukaiInternal DirectorsOutside DirectorsInternal Audit & Supervisory Board MemberOutside Audit & Supervisory Board Member◎○○○○○○○Chairperson◎○○Chairperson◎○○29Skills based on Mid- to Long-Term Growth StrategyEnsuring a wealth of experience, a high level of insight and a high degree of expertise throughout the Board of DirectorsKoki Ando Noritaka Ando Yukio Yokoyama Ken Kobayashi Masahiro Okafuji Masato Mizuno Yukiko Nakagawa Eietsu Sakuraba Masahiko Sawai Naohiro Kamei Chisugi MukaiPresident & Audit & SupervisoryRepresentative Board Member Director, CEO(Outside)Director, CSO, and Managing Executive OfficerAudit & SupervisoryBoard Member (Outside, Full-time)Audit & SupervisoryBoard Member(Full-time)Outside DirectorOutside DirectorOutside DirectorOutside DirectorOutside DirectorExecutive Vice President & Representative Director, COOCorporate managementBrand strategyFood TechSustainabilityStructural reformFinance and accountingRisks and Legal affairs○○○○—○○○-○——○○○○—-○○○—-○○○———○○○○———-○—–○○——○○-* See Appendix for details on each skill.○30Information Disclosure InitiativesNon-financial information including ESG is presented in various mediaValue report describes the NISSIN FOODS Group mid- to long-term value creation process and non-financial information that forms the foundation for sustainable growthReport on the NISSIN FOODS Group approach to Corporate Social Responsibility (CSR) and our activities as a member of societyVALUE REPORTSustainability ReportWeb site, etc.31II. Progress of Mid- to Long-Term Growth Strategy Strengthen Cash GenerationCapabilities of Existing BusinessesEARTH FOOD CHALLENGE 2030Pursue New BusinessesMake a significant shift in our profit portfolio through aggressive growth in Overseas and Domestic Non-Instant Noodles Businesses, while pursuing sustainable growthA challenge to utilize finite resources effectively and reduce the impact of climate changeCo-create foods of the future with food scienceBecome a company that provides food and health solutions through technology32Creating New Value through Synergies between New Businesses and Existing BrandsWe will create new value for NISSIN FOODS Group and contribute to social issues by leveraging synergies with existing mainstay brands such as CURRY MESHI and RAOH, as well as Group companiesNISSIN FOODSFood TechnologyMultifaceted development×＝Delicious Complete Meals, Launch of the KANZEN MEAL brandsCURRY MESHIŌFU CURRY※The above products will be sold at NISSIN’s online store on Monday, May 30th.BUTAKARA RAOH ABURA SOBABANANA SMOOTHIEGREEN SMOOTHIEDAIZU GRANOLA 60g3333 nutrients in an ideally balanced product designKANZEN MEAL is designed to allow people to take a balanced of the 33 nutrients set in the Japanese dietary intake standards. The three largest nutrients-protein, fat, and hydrocarbons-are perfectly balanced. In addition, vitamins, minerals, and essential fatty acids are well-balanced and delicious.例 「完全メシ カレーメシ 欧風カレー」Japanese only34Create a wide variety of touch points with KANZEN MEAL through various channels2023-2022-Packaged FoodsNISSIN Group’s food technology and brand-asset utilizationEmployee cafeterias, delicatessen, etc.Company provided foodRestaurant industryFast foodLunch BoxesMeal KitsFamily restaurantsInstant cooked riceInstant noodlesFrozen foods ConfectioneryBeverages…etc.35Launched from Packaged Foods in 2022Aim to achieve sales of 3 billion yen mainly in packaged foods in the first year (FY 3/2023) .In the next fiscal year (FY 3/2024), we aim to achieve sales of 10 billion yenthrough further expansion of packaged foods development.36Multifaceted Development of NISSIN FOODS Complete Nutrition TechnologyAverage 500 kcal/mealPerfect PFC balanceSalt equivalent: 3.0g or less per mealContains all 33 nutrientsWhat’s more, it’s very appetizing as well!37Specific Approaches to Each Touch Point for Realizing a nation on the cutting edge of preventive medicinePackaged foodsRetail salesLunchboxes, prepared foods, base materialsEmployee cafeteriasPromoting health management3Healthcare cooperation••Improving lifestyle habits using appsImprove QOLs for diabetes and hypertension patients, etc.• Prolong healthy life expectancies for the elderly• To reduce the burden of nursing care and medical expensesRealizing an advanced city preventive medicineNISSIN FOODSComplete Nutrition Technology in multifaceted developmentMeasures against frailty5Smart citiesForeign / Resolving food desert issues38All photos are images only1246Technology Search and Partnerships to Create Future FoodsConcrete study of realizing Well-being through food in Woven City, the city of the demonstration experiment, is launchedCollaboration for use of virtual human body generation modelTests offered at medical institutions(Formerly: medical corporation Yuseikai)Comprehensive partnership agreement based on Complete Nutrition MealsVerification of effectiveness in preventive medicineDelicious Complete Nutrition Meals served incafeterias39I.FY 3/2022 Financial Results and FY 3/2023 Forecasts…………… P3~16Takashi Yano, Executive Officer and CFOII. Progress of Mid- to Long-Term Growth Strategy Koki Ando, Representative Director, President and CEONoritaka Ando, Executive Vice President & Representative Director, COO, and President & Representative Director of NISSIN FOOD PRODUCTS CO., LTD.…………… P18~39Appendix40Price Revisions (Domestic Business)Company NameMain ProductsPrice Revision DatePrice Revision RateNISSIN FOOD PRODUCTSBag-type instant noodles, cup-type instant noodles, cup-type instant rice, cup-type instant soupBeginning with June 1, 2022 shipments5%-12% increase in suggested retail priceMYOJO FOODSBeginning with June 1, 2022 shipmentsBag-type instant noodles, cup-type instant noodles, cup-type instant soup6%-12% increase in suggested retail priceOpen-price products11%-14% increase in shipped priceNISSIN CHILLED FOODSVarious types of chilled noodles (prices of certain products to remain unchanged)Beginning with March 1, 2022 deliveries6%-12% increase in suggested retail priceNISSIN FROZEN FOODSCertain frozen noodle productsBeginning with March 1, 2022 deliveries6%-13% increase in shipped priceNISSIN YORKLactobacillus beverages and yogurt drinksBeginning with June 5, 2022 shipments5%-14% increase in shipped priceNISSIN CISCOKOIKE-YAGORO GURA seriesBeginning with release date on June 13, 2022 Reduce volume by 7%-14%COCONUT SABLE seriesAround fall 2022Reduce volume by 20%Various potato chips products (excluding certain products)February 1 and April 1, 20226%-11% increaseSLIM BAG series, etc.Beginning with release date on June 6, 2022Reduce volume by 6%-9%BonChiTSUNAGE ARARE and PONSUKE brandsBeginning with April 1, 2022 shipmentsReduce volume by 6%-11%41Price Revisions (Overseas)The AmericasMain ProductsPrice Revision DateU.S.BrazilBag-type instant noodles, cup-type instant noodlesBag-type instant noodlesBag-type instant noodles, cup-type instant noodles February 2022MexicoBag-type instant noodles, cup-type instant noodles June 2021May 2021January 2022July 2021May 2021March 2022China (Incl. H.K.)Main ProductsPrice Revision DateMainland ChinaDEMAE ICCHO, CUP NOODLES, etc.Hong KongDEMAE ICCHO, CUP NOODLES, U.F.O.March 2022April 2022AsiaMain ProductsPrice Revision DateSingaporeIndonesiaIndiaBag-type instant noodlesBag-type instant noodles, cup-type instant noodlesBag-type instant noodlesCup-type instant noodlesJune 2021April 2021February 2022October 2021January 202242Domestic Non-Instant Noodles BusinessPursue growth in each category by focusing on the strengths and added value of existing brandsIssues to address include expanding high-value-added products further and establishing new innovative products in the marketFY 3/2022 Review-Chilled and Frozen Foods Business–Confectionery Business-◼ Chilled FoodsSteady sales of ramen products, mainly GYORETSU NO DEKIRU MISE NO RAMEN, MAZEMEN NO TATSUJIN, and YUMEITEN Series◼ CISCO◼ KOIKE-YA◼ Frozen FoodsAchieved growth outpacing the market, mainly for SHIRUNASHI TANTANMEN and MOCHITTO NAMA PASTA. Newly launched NISSIN HONMEN also performed well◼ BonChi◼ YORKStrong sales of PILKUL 400, which offers an increased number of lactobacilli (40 billion per 65ml)Strong sales of GORO GURA Series, steadily growing sales of the new NISSIN CISCO HOT CEREALExpanded sales composition ratio of PRIDE POTATO and other premium brands, pursuing value-added managementStrong sales of mainstay products, including KARASHI MENTAIKO OGATA AGESENFuture TasksPolicy for Initiatives in FY 3/2023➢ Respond to the risk of rising raw material and energy costs➢ Improve profitability by growing sales of highly profitable products, ✓ Improve profitability via price revisions✓ Create greater differentiation of mainstay brands based improve production efficiencies➢ Establish new innovative products in the market/increase market on high quality, health value, and functionality✓ Increase mindshare in connection with profitability43shareOverseas Business: EMEAPursued strategies that leveraged unique NISSIN strengths under the concept of Authentic AsiaDelivered significant growth in number of servings sold due to new channel development combined with online advertising and expansion into new countries◼ Authentic Asia Concept and Communications◼ Approach to the Mosaic MarketFY 3/2022 ReviewCUPAsian BlastBAGAsian Ramen Express⁃ Priority Countries: UK, Germany and France are priority countries; here, we are developing new business models that include discounts and seeking new business partners⁃ New Markets: Launched sales in Eastern European countries where we have not yet entered the market◼ Clean Label Compliance⁃ Vegetarian-compliant products: Released CUP NOODLES Veggie Miso and Soba Japanese Curry⁃ RSPO-certified palm oil: Continued to use RSPO-certified palm oilFuture TasksPolicy for Initiatives in FY 3/2023➢ Increase brand recognition✓ Create brand experiences: Participate actively in sampling and various eventsadvertising✓ Increase customer contact points: Continue to expand online 44Overseas Business: AsiaSteady sales of premium products, especially in Thailand, Singapore and IndonesiaPursuing a strategy for premium bag-type instant noodles, building a profitable model in all regionsFY 3/2022 Review◼ Unique premium bag-type products drive growth⁻ GEKI Series (Thailand, Vietnam, Cambodia, India)⁻ GEKIKARA Series (Indonesia)⁻ YUMEITEN Collaboration Series (Singapore)◼ Pursued a multi-category strategy⁻ Expanded sales of multi-category products, including granola and frozen foods in Thailand and SingaporeFuture TasksPolicy for Initiatives in FY 3/2023➢ Intensifying competition in the premium bag-type instant noodles in the market➢ Soaring raw material prices➢ Fostering cup-type instant noodle culture in emerging Asian ✓ Strengthen branding of premium bag-type instant noodles products✓ Launch new products in specific sales channels to differentiate products and stimulate demand✓ Encourage consumers to try CUP NOODLES through stronger in-marketsstore exposure4545Composition by Segment in ChinaRevenue by segmentRevenue Composition by segment（Hong Kong）20Bil. yen（Mainland China）40Bil. yen1918171615353025201519.617.6FY 3/2021FY 3/202230.635.9FY 3/2021FY 3/202235.3％64.7％Mainland ChinaHong Kong46Skills of each directorSkillCorporate managementBrand strategyFood TechDetails and reasons for selectionIn order to formulate and execute a medium- to long-term sustainable growth strategy amid a dramatically changing business environment, it is necessary to have a solid knowledge, experience, and achievements in overall corporate management.In order to further clarify and establish the core values of “CUP NOODLES,” which has reached the stage that it can be called a global brand, and the competitive advantage of each overseas region, and to continue to grow over the medium to long term by steadily incre asing sales and profits even in mature markets such as Japan, it is necessary to have a wealth of knowledge and experience regarding brand strategy.In order to achieve(i) further advancement and development of the Company’s high technological capabilities;(ii) the realization of a stable supply of safe, secure, and high-quality products incorporating advanced technologies; and(iii) the creation of a new food culture that makes full use of creativity and food tech and the realization of the development of a complete food business as a FUTURE FOOD CREATOR,it is necessary to have knowledge that can make various innovations in the food field, and solid knowledge and experience in each field of quality, production, and technology development.Structural reformSustainabilityIn order to promote CSV management for the realization of the Vision and sustainable growth, and to realize the challenge of effective utilization of limited resources and mitigation of climate change impact (EARTH FOOD CHALLENGE 2030), a wealth of knowledge and experience in the field of sustainability is necessary.Human resources and organizationsIn order to realize an innovative organization that continues to implement strategies and create a new food culture, and to define and implement the NISSIN-style transformation roadmap, a wealth of knowledge and experience in the human resources and organizational fields is necessary.ITIn an environment where IT technology is changing rapidly, a wealth of knowledge and experience in the digital field is required to promote the company-wide activity theme NBX (NISSIN Business Transformation) aiming to transform the business model itself not limited to pure digitalization.Finance and accountingIn addition to accurate financial reporting, solid knowledge and experience in the financial and accounting fields are necessary to build a strong financial base, promote growth investments to achieve sustainable enhancement of corporate value, and formulate financial strategies that enhance shareholder returns.Risks and Legal affairsIn order to establish an appropriate governance system that is the foundation of sustainable enhancement of corporate value and realize a stable supply of food, which is our mission, it is necessary to have solid knowledge and experience in the fields of risk management, corporate governance, and law.47Company 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