Nissin Foods Holdings Co., Ltd.TSE: 2897

Financial Results for FY 3/2022 3Q

· Issued by Nissin Foods Holdings Co., Ltd.

Financial Results for FY 3/2022 3Q

Announced on February 3, 2022

NISSIN FOODS HOLDINGS CO., LTD.

(TSE Stock Code: 2897)

Financial Results Presentation: February 4, 2022

Management Policy for FY 3/2022

Reboot and Make a Fresh Start

In the first year of our new management plan, we will sprint ahead with three growth strategies, as well as organizational and human resource reforms

Domestic Existing Businesses

  • Instant Noodles Business: Reform our supply chain structure, create new categories and channels, and transition to a new sales approach
  • Non-InstantNoodles Business: Accelerate group synergies in both supply and demand (mainly in the confectionery business) to build a foundation for growth and improved profitability

Overseas Existing Businesses

  • Accelerate deeper global branding, which has already begun to produce results. Further solidify competitive advantage as a growth driver
  • Pursue steady progress in multi-category and multi-area strategies to leverage business in China and Brazil

New Businesses

  • 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
    1. smart cities

Group 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 technologies
  • Respond accurately to consumer behavior and awareness to turn increased demand under the COVID-19 pandemic into sustainable growth drivers

* China (Incl. H.K.) strategy and related targets, financial results forecasts are established independently by NISSIN FOODS HOLDINGS

1

FY 3/2022 3Q Financial Results Highlights

FY 3/2022 3Q Results

Revenue

Core Operating Profit of

Existing Businesses

Domestic Instant Noodles Business

Domestic Non-Instant Noodles Business

Overseas Business

Summary

(Institutional accounting basis)

Institutional accounting

Management accounting

Target level

basis

basis*1,*2

for FY 3/2022

424.8

Bil. yen

+13.6%

417.1

Bil. yen

+ 15.8%

Double Digit

43.5

Bil. yen

(5.0%)

42.9

Bil. yen

+ 16.8%

Double Digit

(3.9%)

+ 18.5% Mid single Digit

+6.5%

+ 26.8%

Double Digit

(16.8%)

(3.5%)

Double Digit

  • 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-tolong-term target

*1

Growth 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.

*2

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

2

*3

expenses, etc.).

Core operating profit of existing businesses vs. FY 3/2020 +8.3 Bil. yen (+23.5%)

Consolidated 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 categories

Institutional accounting basis

FY 3/2022

FY 3/2021

YoY change

FY 3/2020

vs. FY 3/2020

Bil. Yen

3Q

3Q

Amount

Ratio

3Q

CAGR

①

②

③=①-② ④=③÷②

⑤

⑥

Revenue

424.8

373.9

+ 50.9

+ 13.6%

348.0

+ 10.5%

Core operating profit

43.5

45.8

(2.3)

(5.0%)

35.2

+ 11.1%

of existing businesses

Operating profit

42.6

50.0

(7.4)

(14.8%)

35.5

+ 9.5%

Profit attributable to owners of

30.7

36.3

(5.5)

(15.3%)

25.6

+ 9.5%

the parent

Core OP margin of existing

10.2%

12.2%

(2.0pt-)

10.1%

businesses

OP margin

10.0%

13.4%

(3.3pt-)

10.2%

Profit attributable to owners of

7.2%

9.7%

(2.5pt-)

7.4%

the parent margin

Management accounting basis

（Constant currency basis, Less COVID-19)

FY 3/2022

FY 3/2021

YoY change

3Q

3Q

Amount

Ratio

⑦=① -Fx impact

⑧＝②-C-19

⑨=⑦-⑧

⑩=⑨÷⑧

417.1

360.3

+ 56.8

+ 15.8%

42.9

36.7

+ 6.2

+ 16.8%

42.0

40.9

+ 1.1

+ 2.7%

10.3%

10.2%

+ 0.1pt

10.1%

11.4%

(1.3pt-)

3

the U.S., etc.
- Increased in China (Incl. H.K.) and the Americas, etc.
- Impact of COVID-19in the previous fiscal year and increased in personnel costs, etc.
- Impact of COVID-19in the previous fiscal year and increased in raw material costs, etc.

Analysis of Core OP of Existing Businesses (YoY, Institutional accounting basis)

Bil. yen

Major Factors: Domestic

Major Factors: Overseas

Decrease

Increase

A： Revenue

(including the impact of change in selling expense ratio)

(Domestic)

(Overseas)

+0.7

+ Increased in revenue in instant noodles

+9.0

business, etc.

  • Increase in selling expense ratio, etc.

+ Increased in revenue across all regions,

etc. (Including the impact of the Americas

price revisions)

Increase/decrease of

marginal profit

Increase/decrease of

fixed expenses

B： CoGS ratio

C： Distribution cost ratio

D： Depr. & amort.

E： Ad. expenses

(Domestic)

(Overseas)

(Domestic)

(Overseas)

(Domestic)

(Overseas)

(Domestic)

(Overseas)

+0.4

(6.5)

+0.2

(1.2)

(0.6)

(0.7)

(0.4)

+0.1

  • Product mix impact, etc.
  • Increased due to continuous soaring raw material costs, etc.
  • Distribution efficiency improvement, product mix impact, etc.
  • Rising distribution costs
  • Increased due to renewal of equipment, etc.
  • Impact of new products in the beverages business and COVID-19 in the previous fiscal year, etc.

- Increased due to soaring raw materials

costs in the Americas, EMEA and China

(Incl. H.K.) , etc.

- Increased in distribution costs, mainly in

Others

F： G&A expenses

G： Gain (loss) on investment accounted for using the equity method

H： Impact relating to business combination

(Domestic)

(Overseas)

(Domestic)

(Overseas)

(Domestic)

(Overseas)

(0.5)

(1.4)

(0.4)

(1.4)

+0.8

- 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)

Increase/decrease

(Domestic)

in core OP of existing businesses

(Overseas)

+0.2

(2.2)

* 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

（D,E,F）

* The analysis of marginal profit is based on the amount obtained by adding selling expenses to revenue.

4

Fixed Costs

=

Expenses in the previous fiscal year - Expenses in the current fiscal year.

③

Others

（G）

=

Results in the previous fiscal year - Results in the current fiscal year.

（H）

= Changes in core operating profit of newly consolidated company for the current fiscal year.

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