Nisshin Seifun Group Inc. TSE:2002

Nisshin Seifun : Consolidated Financial Results for the First Quarter of Fiscal 2026 (Review by audit firm)

Published

Source: MarketScreener

To whom it may concern

Company Name: Nisshin Seifun Group Inc. Representative: Kenji Takihara,

August 7, 2025

Representative Director and President (Code: 2002, TSE Prime Market)

Contact: Reiko Adachi,

Executive Officer and General Manager, Public Communications Department (General Administration Division)

(Tel: +81-3-5282-6650)

Consolidated Financial Results for the First Quarter of Fiscal 2026 [Japanese GAAP] (Review by audit firm)

The Company released its "Consolidated Financial Results for the First Quarter of Fiscal 2026 [Japanese GAAP]" on July 31, 2025. This serves as notice of the completion of a review of the financial statements by audit firm.

No changes to the quarterly consolidated financial statements released on July 31, 2025.

Disclaimer: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.

Consolidated Financial Results for the First Quarter of Fiscal 2026 [Japanese GAAP]

August 7, 2025

Listed Company Name: Nisshin Seifun Group Inc. Registered on Tokyo Stock Exchange

Code: 2002

URL: https://www.nisshin.com

Representative: Kenji Takihara, Representative Director and President

Contact: Reiko Adachi, Executive Officer and General Manager, Public Communications Department (General Administration Division)

Tel.: +81-3-5282-6650

Date to start distributing dividends: -Supplementary materials for these consolidated financial results: Yes Results briefing for financial results: None

(Figures shown are rounded down to the nearest million yen.)

  1. Consolidated Financial Results for the First Quarter of Fiscal 2026 (April 1, 2025 to June 30, 2025)

    1. Consolidated Business Results

      (Percentages represent year-on-year changes.)

      Net sales

      Operating profit

      Ordinary profit

      Profit attributable to owners of parent

      Million yen

      %

      Million yen

      %

      Million yen

      %

      Million yen

      %

      First three months of Fiscal 2026

      215,364

      0.7

      11,296

      (14.6)

      12,932

      (10.9)

      11,620

      7.1

      First three months of Fiscal 2025

      213,874

      2.7

      13,220

      11.5

      14,516

      10.8

      10,845

      24.0

      (Note) Comprehensive income: First three months of Fiscal 2026: ¥12,609 million (down 24.7%)

      First three months of Fiscal 2025: ¥16,740 million (down 46.7%)

      Earnings per share

      Fully diluted earnings per share

      Yen

      Yen

      First three months of Fiscal 2026

      40.11

      -

      First three months of Fiscal 2025

      36.46

      -

    2. Consolidated Financial Position

    Total assets

    Net assets

    Equity ratio

    Million yen

    Million yen

    %

    June 30, 2025

    790,346

    506,349

    61.8

    March 31, 2025

    789,713

    502,570

    61.4

    (Reference) Equity capital: June 30, 2025: ¥488,550 million March 31, 2025: ¥485,005 million

  2. Dividends

    Dividend per share

    1Q End

    2Q End

    3Q End

    Year-End

    Annual

    Fiscal 2025

    Fiscal 2026

    Yen

    -

    -

    Yen

    25.00

    Yen

    -

    Yen

    30.00

    Yen

    55.00

    Fiscal 2026 (forecast)

    30.00

    -

    30.00

    60.00

    (Note) Revision to the latest forecast of dividends: None

  3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(The full-year percentages indicate the rates of increase or decrease compared with the previous fiscal year; the percentages for the first half are comparisons with the same period of the previous fiscal year.)

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

Earnings per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

First half

435,000

1.3

24,000

(7.7)

26,000

(4.0)

19,000

(6.7)

65.58

Full year

870,000

2.2

50,000

7.8

53,000

7.7

39,000

12.4

134.61

(Note) Revision to the latest forecast of financial results: None

* Notes

  1. Significant changes in the scope of consolidation during the first three months of the fiscal year ending March 31, 2026: None

  2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes

    Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Related Notes (3) Notes on Quarterly Consolidated Financial Statements [Notes on Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statements]" on page 10 of the Attachment.

  3. Changes in accounting policies, changes in accounting estimates and revisions restated

    1. Changes in accounting policies associated with the revisions of accounting standards, etc.: None

    2. Changes in accounting policies other than the above: None

    3. Changes in accounting estimates: None

    4. Revisions restated: None

      As of June 30, 2025

      290,657,891

      As of March 31, 2025

      290,657,891

      As of June 30, 2025

      936,760

      As of March 31, 2025

      936,739

      First three months of Fiscal 2026

      289,721,136

      First three months of Fiscal 2025

      297,426,100

  4. Number of shares issued and outstanding (common stock)

    1. Number of shares issued and outstanding (including treasury shares)

    2. Number of treasury shares

    3. Average number of shares outstanding

  • Review of the attached quarterly consolidated financial statements by certified public accountants or the audit firm: Yes (voluntary)

  • Statement regarding the proper use of financial forecasts and other special remarks

    1. The statements contained in this document are based on various assumptions and do not constitute any guarantee or definite promise that projections of future performance or related business policies will actually be realized. For details of assumptions for financial forecasts and other related matters, please refer to "1. Overview of Business Performance, etc. (3) Forecast of Consolidated Financial Results and Other Forward-looking Information" on page 5 of the Attachment.

    2. Supplementary materials for this report can be found on the Company's website.

Contents of the Attachment
  1. Overview of Business Performance, etc 2

    1. Overview of Business Performance for the Period under Review 2

    2. Overview of Financial Position for the Period under Review 5

    3. Forecast of Consolidated Financial Results and Other Forward-looking Information 5

  2. Quarterly Consolidated Financial Statements and Related Notes 6

    1. Quarterly Consolidated Balance Sheets 6

    2. Quarterly Consolidated Statements of Income and Comprehensive Income 8

      [Quarterly Consolidated Statements of Income] 8

      [Quarterly Consolidated Statements of Comprehensive Income] 9

    3. Notes on Quarterly Consolidated Financial Statements 10

[Notes on the Premise of a Going Concern] 10

[Notes on a Significant Change in Shareholders' Equity] 10

[Notes on Special Accounting Treatment for Preparing Quarterly Consolidated Financial

Statements] 10

[Notes on Quarterly Consolidated Statements of Income] 10

[Notes on Quarterly Consolidated Statements of Cash Flows] 10

[Notes on Segment Information, etc.] 11

  1. ‌Overview of Business Performance, etc.
    1. ‌Overview of Business Performance for the Period under Review

      [Overview of the first three months of the consolidated fiscal year under review]

      During the first three months of the fiscal year ending March 31, 2026, the Japanese economy saw strong inbound tourism demand. However, consumer spending did not pick up due to the rise in the price of rice induced by shortages, in addition to the persistently high prices of other goods. Additionally, U.S. tariff policies added to the uncertainty of the global economy. The future of the environment surrounding the Nisshin Seifun Group is highly uncertain.

      Under these conditions, the Group strives to fulfill its corporate mission of ensuring a stable supply of foods involving wheat flour and the delivery of safe and reliable products in each business area. At the same time, in a push to achieve the goals set out in "The Nisshin Seifun Group Medium-Term Management Plan 2026," set to conclude in the fiscal year ending March 31, 2027, the Group's highest priority has been its efforts to stimulate its ability to grow by restructuring its business portfolio, addressing its rising costs in the current inflationary environment, including personnel expenses, increasing the profits from the Australia flour milling business and implementing a new strategy to restructure the business, steadily improving the performance of the India yeast business while pursuing profitability, and expediting automation and labor-saving measures.

      Specifically, in the Flour Milling Business, the Mizushima Plant of Nisshin Flour Milling, Inc. commenced operations in May of this year. This plant was established as a "smart plant" that utilizes advanced automation and digital technologies. After the Mizushima Plant began operating, the Okayama Plant was closed in July, and the Sakaide Plant is scheduled to close in September. Miller Milling Company, LLC, based in the United States, is enhancing its production systems. At the Saginaw Plant, production lines were added and began operating in March. Reinforcement work at the Winchester Plant is scheduled to be completed soon. In the Processed Food Business, Nisshin Seifun Welna Inc. entered into an agreement with Shohei Ohtani of the Los Angeles Dodgers in November last year to feature him in a commercial. Nisshin Seifun Welna Inc. has rebranded Ma·Ma, which is celebrating its 70th anniversary this year, and is revising its lineup and launching new products. Additionally, Nisshin Seifun Welna Inc. is striving to increase demand for its products by enthusiastically implementing sales promotion activities leveraging this agreement. Nisshin Pharma Inc. plans to discontinue its fine chemicals business, which produces and sells Active Pharmaceutical Ingredient, in the fiscal year under review. It also plans to transfer its healthcare foods business, which manufactures and sells supplements, to Oriental Yeast Co., Ltd., a company that operates a yeast and biotechnology business.

      Consolidated net sales in the first three months of the fiscal year under review increased 0.7% year on year to ¥215,364 million, chiefly due to an increase in large-scale construction in the engineering business and strong sales in the processed food business and the prepared dishes and other prepared foods businesses. This increase was partly offset by wheat prices decreasing and the impact of foreign currency translation in the overseas flour milling business. Operating profit and ordinary profit decreased 14.6% year on year to ¥11,296 million and 10.9% to ¥12,932 million, respectively, primarily due to the downturn of the overseas flour milling business caused mainly by foreign currency translation, costs associated with the start of operations at the Mizushima Plant in the domestic flour milling business, and the increasing expenses in various business, including the cost of raw materials, transportation and labor. Profit attributable to owners of parent came to

      ¥11,620 million, up 7.1% year on year, reflecting a gain on sale of investment securities due to the reduction of cross-shareholdings.

      (Year-on-year Comparison)

      (Million yen)

      First three months of Fiscal 2025

      First three months of Fiscal 2026

      Difference

      Change

      Net sales

      213,874

      215,364

      1,490

      0.7%

      Operating profit

      13,220

      11,296

      1,923

      (14.6)%

      Ordinary profit

      14,516

      12,932

      1,583

      (10.9)%

      Profit attributable to owners of parent

      10,845

      11,620

      774

      7.1%

      [Business Overview by Segment]

      * Expenses incurred by Nisshin Seifun Group Inc., which had been regarded as shared Company-wide expenses, were previously allocated to each business based on business size. However, due to active efforts to advance the Group's business portfolio in recent years, there has been an uptick in the handling of growth investments, including new acquisitions, subsequent post-merger integration (PMI) initiatives, and compliance with local laws and regulations. In light of this situation, we have revised our criteria for allocating expenses to each business from the first quarter of the fiscal year under review.

      We provide two types of year-on-year comparisons for each business: one that reflects the change of the allocation criteria and one that does not.

      The year-on-year changes in operating profits in the explanation of each business's results reflect the changes to the allocation criteria.

      1. Flour Milling Segment

        (Million yen)

        First three months of Fiscal 2025

        First three months of Fiscal 2026

        Difference

        Change

        Net sales

        114,912

        104,647

        (10,265)

        (8.9)%

        Operating profit

        7,733

        6,675

        (1,058)

        (13.7)%

        [following adjustments to the previous year's results*]

        [(8,051)]

        -

        [(1,376)]

        [(17.1)%]

        In the domestic flour milling business, shipments remained roughly consistent with the previous year due to strong inbound tourism demand and the positive effects of active sales expansion measures, despite a reactionary decline following an increase in shipments before the price revisions in the previous fiscal year.

        In July 2025, we revised the prices of commercial-use wheat flour due to changes in the government's prices for five classes of imported wheat. The government's price was lowered 4.6% on average in April. Additionally, transportation costs, personnel expenses and other expenses rose.

        In the overseas flour milling business, net sales decreased from the previous fiscal year, primarily due to a decline in wheat market prices and foreign currency translation adjustments.

        As a result, net sales of the Flour Milling Segment decreased 8.9% year on year to ¥104,647 million. Operating profit decreased 17.1%* to ¥6,675 million, primarily due to the increase of personnel and other expenses in the domestic flour milling business, costs associated with the start of operations at the Mizushima Plant and the impact from foreign currency translation in the overseas flour milling business.

      2. Processed Food Segment

        (Million yen)

        First three months of Fiscal 2025

        First three months of Fiscal 2026

        Difference

        Change

        Net sales

        51,303

        54,749

        3,445

        6.7%

        Operating profit

        2,226

        1,850

        (376)

        (16.9)%

        [following adjustments to the previous year's results*]

        [(2,003)]

        -

        [(153)]

        [(7.7)%]

        In the processed food business, we actively implemented initiatives to increase sales in Japan. This resulted in solid shipments, primarily of pasta. In addition, overseas shipments of commercial-use prepared mixes increased. Consequently, net sales exceeded the previous fiscal year. In the spring of this year, we launched the new Ma·Ma RICH-NA series of frozen pasta products, which enables consumers to enjoy a luxurious dining experience similar to eating pasta at a restaurant. We also launched new Nisshin Majisakutto prepared mixes designed for consumers who prefer to cook without oil. This product features proprietary materials that enable consumers to create crispy tempura and karaage (Japanese-style fried chicken) without having to deep fry the products.

        In the yeast and biotechnology business, net sales were up year on year, reflecting increased shipments of yeast, etc. and higher sales volume in India.

        In the healthcare foods business, net sales were lower year on year due to lower shipments of consumer products.

        As a result, net sales of the Processed Food Segment increased 6.7% year on year to ¥54,749 million. Operating profit fell 7.7%* to ¥1,850 million, primarily due to the ongoing increase of costs, including raw material and transportation in the processed food business.

      3. Prepared Dishes and Other Prepared Foods Segment

        (Million yen)

        First three months of Fiscal 2025

        First three months of Fiscal 2026

        Difference

        Change

        Net sales

        37,973

        40,773

        2,799

        7.4%

        Operating profit

        1,558

        1,422

        (135)

        8.7%

        [following adjustments to the previous year's results*]

        [(1,489)]

        -

        [(66)]

        [(4.5)%]

        In the Prepared Dishes and Other Prepared Foods Segment, net sales increased 7.4% year on year to ¥40,773 million, reflecting robust sales. Operating profit decreased 4.5%* to ¥1,422 million, largely due to rising costs for raw materials and labor, which more than offset sales growth and improved productivity.

      4. Others Segment

        (Million yen)

        First three months of Fiscal 2025

        First three months of Fiscal 2026

        Difference

        Change

        Net sales

        9,683

        15,194

        5,511

        56.9%

        Operating profit

        1,697

        1,450

        (246)

        (14.5)%

        [following adjustments to the previous year's results*]

        [(1,671)]

        -

        [(220)]

        [(13.2)%]

        In the engineering business, net sales exceeded the previous fiscal year due to an increase in large-scale construction in the plant engineering area.

        In the mesh cloths business, net sales declined year on year due to a decrease in shipments of screen printing materials for solar panels.

        As a result, net sales of the Others Segment increased 56.9% year on year to ¥15,194 million, with operating profit down 13.2% to ¥1,450 million. The decrease in profit came from a decline in shipments in the mesh cloth business.

    2. ‌Overview of Financial Position for the Period under Review

      (Million yen)

      As of March 31, 2025

      As of June 30, 2025

      Difference

      Current assets

      Non-current assets

      338,728

      450,984

      330,533

      459,812

      (8,194)

      8,827

      Total assets

      789,713

      790,346

      632

      Current liabilities

      Non-current liabilities

      147,313

      139,829

      143,302

      140,694

      (4,010)

      864

      Total liabilities

      287,143

      283,996

      (3,146)

      Total net assets

      502,570

      506,349

      3,779

      Total liabilities and net assets

      789,713

      790,346

      632

      The status of assets, liabilities and net assets on a consolidated basis at the end of the first three months of the fiscal year ending March 31, 2026 was as follows.

      Current assets decreased ¥8,194 million from the previous fiscal year-end to ¥330,533 million, mainly accompanying a decrease in cash and deposits. Non-current assets increased

      ¥8,827 million to ¥459,812 million, primarily accompanying increases in property, plant and equipment and the market valuation of investment securities held. As a result, total assets increased ¥632 million from the previous fiscal year-end to ¥790,346 million.

      Current liabilities decreased ¥4,010 million to ¥143,302 million, mainly accompanying a decrease in accrued expenses. Non-current liabilities increased ¥864 million to ¥140,694 million. As a result, total liabilities decreased ¥3,146 million from the previous fiscal year-end to ¥283,996 million. Net assets increased ¥3,779 million to ¥506,349 million, mainly reflecting an increase due to profit attributable to owners of parent, a decrease due to the payment of dividends, and an increase in accumulated other comprehensive income.

    3. ‌Forecast of Consolidated Financial Results and Other Forward-looking Information

    The consolidated results forecast for the fiscal year ending March 31, 2026 which was announced on May 15, 2025 has not been changed. Operating profit and ordinary profit in the first three months of the fiscal year under review declined year on year, but this was in line with the Company's expectations. The Company plans to ensure that prices are revised in each business beginning in the second quarter to achieve the full-year forecast. Additionally, it will continue to implement priority initiatives to achieve the targets set in "The Nisshin Seifun Group Medium-Term Management Plan 2026," which will conclude in the fiscal year ending March 31, 2027.

    For the fiscal year under review, the Company plans to pay an annual dividend of ¥60 per share, an increase of ¥5 from the previous year as initially planned. This plan is based on the Company's basic policy of achieving a consolidated dividend payout ratio of approximately 50% (after the exclusion of gains or losses from non-recurring extraordinary factors) by the fiscal year ending March 31, 2027, the final year of "The Nisshin Seifun Group Medium-Term Management Plan 2026." Based on the planned dividends, the payout ratio on a consolidated basis for the fiscal year under review will be 44.6%, or 48.7% with the exclusion of gains or losses from non-recurring extraordinary factors. The targets for the final year of the Medium-Term Management Plan are net sales of ¥950.0 billion, an operating profit of ¥57.0 billion, EPS (earnings per share) of ¥140, and an ROE of 8.0%.

  2. ‌Quarterly Consolidated Financial Statements and Related Notes
  1. ‌Quarterly Consolidated Balance Sheets

    (Million yen)

    As of March 31, 2025

    As of June 30, 2025

    Assets

    Current assets

    Cash and deposits

    93,968

    73,038

    Notes and accounts receivable - trade, and contract 109,547 110,961

    assets

    Securities

    2,150

    14,079

    Inventories

    120,641

    120,165

    Other

    12,933

    12,736

    Allowance for doubtful accounts

    (512)

    (447)

    Total current assets

    338,728

    330,533

    Non-current assets

    Property, plant and equipment

    Buildings and structures, net

    77,665

    79,129

    Machinery, equipment and vehicles, net

    74,633

    80,956

    Land

    52,700

    52,774

    Right-of-use assets, net

    18,731

    18,473

    Other, net

    27,269

    24,122

    Total property, plant and equipment

    251,000

    255,455

    Intangible assets

    Goodwill

    5,018

    5,229

    Other

    15,956

    15,841

    Total intangible assets

    20,975

    21,070

    Investments and other assets

    Investment securities

    158,338

    162,726

    Other

    20,845

    20,733

    Allowance for doubtful accounts

    (174)

    (173)

    Total investments and other assets

    179,009

    183,286

    Total non-current assets

    450,984

    459,812

    Total assets

    789,713

    790,346

    As of March 31, 2025

    (Million yen)

    As of June 30, 2025

    Liabilities

    Current liabilities

    Notes and accounts payable - trade

    64,872

    72,044

    Short-term borrowings

    13,141

    9,755

    Income taxes payable

    7,502

    4,998

    Accrued expenses

    26,295

    21,148

    Other

    35,502

    35,355

    Total current liabilities

    147,313

    143,302

    Non-current liabilities

    Bonds payable

    20,000

    20,000

    Long-term borrowings

    11,244

    11,148

    Lease liabilities

    40,148

    40,042

    Deferred tax liabilities

    37,689

    38,916

    Provision for repairs

    1,281

    1,227

    Retirement benefit liability

    21,935

    21,782

    Other

    7,530

    7,577

    Total non-current liabilities

    139,829

    140,694

    Total liabilities

    287,143

    283,996

    Net assets

    Shareholders' equity

    Share capital

    17,117

    17,117

    Capital surplus

    12,560

    12,560

    Retained earnings

    341,375

    344,300

    Treasury shares

    (1,470)

    (1,470)

    Total shareholders' equity

    369,583

    372,507

    Accumulated other comprehensive income

    Valuation difference on available-for-sale securities

    74,065

    77,306

    Deferred gains or losses on hedges

    (112)

    71

    Foreign currency translation adjustment

    40,514

    37,714

    Remeasurements of defined benefit plans

    955

    949

    Total accumulated other comprehensive income

    115,422

    116,042

    Non-controlling interests

    17,564

    17,799

    Total net assets

    502,570

    506,349

    Total liabilities and net assets

    789,713

    790,346

  2. ‌Quarterly Consolidated Statements of Income and Comprehensive Income

    ‌[Quarterly Consolidated Statements of Income]

    (Million yen)

    Three months ended June 30, 2024

    Three months ended June 30, 2025

    Net sales

    213,874

    215,364

    Cost of sales

    165,310

    167,940

    Gross profit

    48,563

    47,424

    Selling, general and administrative expenses

    35,343

    36,127

    Operating profit

    13,220

    11,296

    Non-operating income

    Interest income

    229

    290

    Dividend income

    1,247

    1,366

    Share of profit of entities accounted for using equity method

    466

    880

    Other

    510

    324

    Total non-operating income

    2,454

    2,862

    Non-operating expenses

    Interest expenses

    987

    904

    Other

    170

    321

    Total non-operating expenses

    1,158

    1,226

    Ordinary profit

    14,516

    12,932

    Extraordinary income

    Gain on sale of investment securities

    2,039

    4,668

    Total extraordinary income

    2,039

    4,668

    Extraordinary losses

    Loss on retirement of non-current assets

    135

    404

    Total extraordinary losses

    135

    404

    Profit before income taxes

    16,420

    17,196

    Income taxes

    5,216

    5,235

    Profit

    11,204

    11,960

    Profit attributable to non-controlling interests

    358

    340

    Profit attributable to owners of parent

    10,845

    11,620

    ‌[Quarterly Consolidated Statements of Comprehensive Income]

    Three months ended June 30, 2024

    (Million yen)

    Three months ended June 30, 2025

    Profit

    11,204

    11,960

    Other comprehensive income

    Valuation difference on available-for-sale securities

    (5,893)

    3,240

    Deferred gains or losses on hedges

    198

    156

    Foreign currency translation adjustment

    10,847

    (2,544)

    Remeasurements of defined benefit plans, net of tax

    21

    13

    Share of other comprehensive income of entities accounted for using equity method

    363

    (217)

    Total other comprehensive income

    5,536

    648

    Comprehensive income

    16,740

    12,609

    Comprehensive income attributable to

    Comprehensive income attributable to owners of parent

    15,879

    12,240

    Comprehensive income attributable to non-controlling interests

    861 369

  3. ‌Notes on Quarterly Consolidated Financial Statements

The quarterly consolidated financial statements have been prepared, conforming to the Tokyo Securities Exchange's General Principles for Preparing Quarterly Consolidated Financial Statements, Article 4 paragraph (i) and accounting standards for quarterly financial statements accepted generally as being fair and appropriate in Japan (however, when matters stipulated under Article 4 paragraph

(ii) apply, there is no need for adoption).

‌[Notes on the Premise of a Going Concern] There are no applicable matters to be reported.

‌[Notes on a Significant Change in Shareholders' Equity] There are no applicable matters to be reported.

‌[Notes on Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statements]

Tax expenses are calculated in accordance with Paragraph 15, "Method for Using the Statutory Effective Tax Rate," of the Implementation Guidelines on Tax Effect Accounting for Interim Financial Statements, pursuant to the provision of Paragraph 19 of the Guidance on Accounting Standard for Quarterly Financial Reporting.

The amount of tax adjustments is included in "Income taxes."

‌[Notes on Quarterly Consolidated Statements of Income]

(Application of accounting procedures and disclosure of income taxes related to the global minimum tax rules)

The Company applies paragraph 7 of Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules (ASBJ PITF No. 46, March 22, 2024) and does not record income taxes related to the global minimum tax rules in the consolidated financial statements for the first three months of the fiscal year under review.

‌[Notes on Quarterly Consolidated Statements of Cash Flows]

The quarterly consolidated statements of cash flows has not been prepared for the three months ended June 30, 2025. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the three-month period under review are as follows.

Three months ended June 30, 2024

Three months ended June 30, 2025

Depreciation ¥5,714 million ¥6,146 million

Amortization of goodwill ¥308 million ¥317 million

‌[Notes on Segment Information, etc.] [Segment Information]

  1. First three months of Fiscal 2025 (April 1, 2024 to June 30, 2024)

    Information on net sales and profit (loss) by reportable segment

    (Million yen)

    Reportable segment

    Others (Note 1)

    Total

    Adjustment (Note 2)

    Carried on quarterly consolidated statements of income

    (Note 3)

    Flour Milling

    Processed Food

    Prepared Dishes and Other Prepared

    Foods

    Total

    Net sales

    Sales to external customers

    114,912

    51,303

    37,973

    204,190

    9,683

    213,874

    -

    213,874

    Intersegment sales and transfers

    4,848

    428

    1,128

    6,405

    670

    7,076

    (7,076)

    -

    Total

    119,761

    51,732

    39,102

    210,596

    10,354

    220,950

    (7,076)

    213,874

    Segment profit

    8,051

    2,003

    1,489

    11,544

    1,671

    13,215

    4

    13,220

    Notes: 1. Business segment of "Others" is excluded from reportable segment, which includes engineering, mesh cloths, handling and storage businesses.

    1. Segment profit adjustment refers to intersegment transaction eliminations and other.

    2. Segment profit has been adjusted for the operating profit appearing in the quarterly consolidated statements of income.

  2. First three months of Fiscal 2026 (April 1, 2025 to June 30, 2025)

  1. Information on net sales and profit (loss) by reportable segment

    (Million yen)

    Reportable segment

    Others (Note 1)

    Total

    Adjustment (Note 2)

    Carried on quarterly consolidated statements of income

    (Note 3)

    Flour Milling

    Processed Food

    Prepared Dishes and Other Prepared Foods

    Total

    Net sales

    Sales to external customers

    104,647

    54,749

    40,773

    200,170

    15,194

    215,364

    -

    215,364

    Intersegment sales and transfers

    5,071

    457

    1,170

    6,699

    1,512

    8,212

    (8,212)

    -

    Total

    109,718

    55,206

    41,944

    206,869

    16,707

    223,577

    (8,212)

    215,364

    Segment profit

    6,675

    1,850

    1,422

    9,948

    1,450

    11,398

    (101)

    11,296

    Notes: 1. Business segment of "Others" is excluded from reportable segment, which includes engineering, mesh cloths, handling and storage businesses.

  2. Segment profit adjustment refers to intersegment transaction eliminations and other.

  3. Segment profit has been adjusted for the operating profit appearing in the quarterly consolidated statements of income.

2. Changes in reportable segments

Expenses incurred by Nisshin Seifun Group Inc., which had been regarded as shared Company-wide expenses, were previously allocated to each business based on business size. However, due to active efforts to advance the Group's business portfolio in recent years, there has been an uptick in the handling of growth investments, including new acquisitions, subsequent PMI initiatives, and compliance with local laws and regulations. In light of this situation, we have revised our criteria for allocating expenses to each business from the first

quarter of the fiscal year under review.

Segment profit for the first three months of the previous fiscal year reflects this change in allocating standards.