Slides
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Fiscal 2025 Results Briefing Meeting May 19, 2025 Nisshin Seifun Group Inc.
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Contents 2 I. Fiscal 2025 Results II. Fiscal 2026 Forecasts III. Progress of the Medium-Term Management Plan IV. Corporate Value Enhancement Initiatives Appendix
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The Group's Future-oriented Growth 3 Main Points of Today's Meeting ➢ ➢ To deal with the present issue of cost increases, we will implement appropriate price revisions and ensure an earnings base for future growth ➢ As a corporate group responsible for providing food infrastructure, we will use the cash earned from the Group's core businesses to invest in growth areas and also proactively investing in improvements to those core businesses themselves, in an effort to achieve the sustainable growth of the overall Group ➢ In FY2026 we project operating profit of ¥50 billion. The road ahead this year is marked with extreme uncertainty and unpredictability, but the Group will make concerted efforts to achieve this target operating profit ➢ We will introduce per-business ROIC management, promote an optimum capital structure, clarify our cash allocation approach and make every effort to enhance corporate value In addition to eliminating cross-shareholdings, we will make steady progress on shareholder returns in line with currently stated policy ◎ Further Enhancement to Capital Policies◎ We will aim for the profit level set out in the final year of the Medium-Term Management Plan (operating profit of ¥57 billion) as a target ➢ In FY2025, profit declined primarily due to delays in responding to increases in personnel expenses and other costs, temporarily slowing the Group's overall pace of growth. However, from FY2026 and beyond, we will return to a growth track by steadily tackling each of the issues identified as top priority measures. ➢ 3
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4 I. Fiscal 2025 Results
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5 1. Fiscal 2025 Results Net sales decreased, primarily due to wheat flour price revisions associated changes to wheat prices in the domestic flour milling business, as well as the impact of falling wheat market prices in the overseas flour milling business Profit attributable to owners of parent increased, reflecting gains on the sale of investment securities amid efforts to reduce cross- shareholdings, more than offsetting the business restructuring costs recorded due to discontinuing business activities at Nisshin Pharma Inc. Operating profit decreased, reflecting ongoing cost increases for raw materials, transportation and labor in each business along with reduced shipments of bulk pharmaceuticals, despite strong results in the overseas flour milling business, prepared dishes andother prepared foods businesses, and the engineering business. (100 millions of yen) Fiscal 2025 Results Fiscal 2024 Results Forecasts Change Change Net sales 8,515 8,582 (0.8%) 8,700 (2.1%) Overseas sales ratio 30.8% 31.3% - 32.8% - Operating profit 464 478 (3.0%) 510 (9.1%) Ordinary profit 492 500 (1.6%) 530 (7.2%) Profit attributable to owners of parent 347 317 +9.3% 390 (11.1%) * Figures rounded to the nearest 100 million yen.
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6 2. FY2025 Results [by Segment] (100 millions of yen) Fiscal 2024 Results Fiscal 2025 Results YoY difference YoY change Forecasts difference Forecasts change Net sales [Overseas sales] 8,582 [2,682] 8,515 [2,622] (68) [-60] (0.8%) [-2.2%] (185) [-228] (2.1%) [-8.0%] Flour Milling 4,582 4,436 (146) (3.2%) (184) (4.0%) Processed Food 2,011 2,063 +52 +2.6% (17) (0.8%) Prepared Dishes and Other Prepared Foods 1,536 1,561 +25 +1.6% +21 +1.3% Others 454 456 +2 +0.4% (4) (0.9%) Operating profit [Overseas operating profit] 478 [155] 464 [171] (14) [+15] (3.0%) [+10.0%] (46) [-15] (9.1%) [-8.1%] Flour Milling 286 281 (5) (1.6%) (9) (3.0%) Processed Food 84 64 (20) (23.3%) (31) (32.6%) Prepared Dishes and Other Prepared Foods 54 58 +4 +8.1% +3 +6.0% Others 54 63 +8 +15.5% (6) (9.4%) Adjustments* 1 (2) (3) - (3) - Ordinary profit 500 492 (8) (1.6%) (38) (7.2%) Profit attributable to owners of parent 317 347 +29 +9.3% (43) (11.1%) * Includes elimination of intersegment transactions, among other adjustments * Figures rounded to the nearest 100 million yen.
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200 Domestic wheat flour shipment volume Sales expansion costs Bran prices Cost related and others Overseas operating profit Shipment volume Sales expansion costs Cost related and others Overseas operating profit Prepared Dishes and Other Prepared Foods Segment 7 3. Fiscal 2025 Operating Profit — Year-on-Year Analysis Analysis of Change in Operating Profit (vs. FY2024) : Increase in profit : Decrease in profit FY2024 Results Flour Milling Segment ¥(0.5) billion Processed Food Segment ¥(2.0) billion Others Segment, etc. FY2025 Results ¥47.8 billion ¥46.4 billion (¥-1.4 billion YoY) : Increase due to expanded restaurant demand and the effects of efforts to expand sales : Bran prices remained flat from the previous year : Impacted by rising costs including logistics costs and personnel expenses, and the rebound from temporary cost improvements in the previous fiscal year : Profit increased, reflecting firm shipments particularly in Australia and the effect of foreign currency translation : Increased due to steady shipments, particularly among products for household use : Impacted by increased import costs due to the effect of foreign current translation and a rise in transportation costs, etc. : Decrease in bulk pharmaceuticals shipments, offset by increased shipments in the prepared mixes business : The increase in costs, such as raw materials and labor costs, was offset by increased sales, improved productivity, and other factors. : Increased in part due to improvements to construction efficiency in the engineering business ¥+0.5 billion ¥+0 billion ¥(2.7) billion ¥+2.1 billion ¥+0.4 billion ¥(1.7) billion ¥(0.3) billion ¥+0.4 billion ¥+0.7 billion ¥(0.4) billion ¥(0.4) billion : Decreased due to higher marketing expenses : Decrease due to increase in use from the previous fiscal year
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8 4. Review of Top Priority Measures for FY2025 (1) Stimulate the Group’s Ability to Grow by Restructuring the Business Portfolio In the flour milling business, the domestic Mizushima Plant was completed and began operating from May. In the United States, extension work on the Saginaw Plant was completed in March, with extension work on the Winchester Plant also scheduled for completion around su mmer. Additionally, the decision has been made to discontinue business activities at Nisshin Pharma Inc. during FY2026 (by March 2026). Details a re provided on the next page. This fiscal year the Group will continue to pursue efforts focused on its top priority measures (2) Implement Initiatives to Achieve a Recovery in the Australia Flour Milling Business and India Yeast Business • In the Australia flour milling business, sales have been strong, despite having incurred increased costs due to the introduct ion of an ERP system. Product price revisions in response to rising costs have also been steadily implemented to ensure increased profit • In the India yeast business, sales have been steady (achieving a share of around 25% as of March 31, 2025). However, despite having pursued price revisions to deal with rising costs, the response has been delayed →This fiscal year we will continue to position the Group's top priority measures as part of efforts to regain performance and drive business growth in both businesses (3) Produce Visible Results by Executing the R&D Strategy In the flour milling business, we have clarified the positive effects that Amuleia high dietary fiber wheat flour has on gut health, and the relationship between the type and amount of dietary fiber, and fermentability in the gut. In the processed food business, we have released the Nisshin Maji- Sakutto series of batter mixes that do not need to be deep-fried in oil, in response to the declining trend of deep -frying at home, and also launched the RICH-NA series of frozen one-dish pasta dishes targeting DINK and DEWK consumers. (4) Attain the Benefits of Automation and Labor-saving In the flour milling business, we have introduced cutting-edge technologies at our new Mizushima Plant. We will continue to implement measures including the rollout of these technologies to other flour milling plants in Japan and overseas. In prepared dishes and other prepared foods businesses, we have been developing automation and labor-saving technologies such as automated ingredient placement, while our d igital technology-driven sauce application equipment and ingredient placement inspection equipment have reached the implementation stag e. This fiscal year we will continue to position these efforts as top priority measures in an effort to speed up advancements in auto mation and labor saving
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9 5. Discontinuation of Business Activities at Nisshin Pharma Inc. → The business will commence operations at Oriental Yeast Co., Ltd. from FY2027 (April 2026) ◼ Background of the Discontinuation of Business Activities Performed by Nisshin Pharma Inc. Fine Chemicals business (manufacturing and sale of active pharmaceutical ingredients in drugs such as those for treating hyperlipidemia) Healthcare foods business (Manufacturing and sale of supplement products) A difficult business environment has persisted due to slumping sales Measures aimed at further development are needed Main factor was the Group's poor operating results in FY2025. We determined that the difficult conditions would continue in FY2026 and beyond • With the discontinuation of the Fine Chemicals business, the Healthcare Foods business will be transferred to the Group compa ny Oriental Yeast Co., Ltd. • The Healthcare Foods business includes brands and products that have been customer favorites for many years. We will further develop the Healthcare Foods business by transferring it to Oriental Yeast Co., Ltd., which has food ingredient development capabilities, and by making effective use of its assets ◼ Future plans • Fine Chemicals business • Healthcare foods business → The business will be discontinued by the end of FY2026 → The production of bulk pharmaceuticals, the main product line will cease at the end of October 2025. ◼ Impact on consolidated results • An extraordinary loss of (¥2,275 million) was recorded in fiscal 2025 due to the write-down of inventories in the fine chemicals business • The impact of these measures has been incorporated into the consolidated forecasts for fiscal 2026 To achieve our Medium-Term Management Plan and ensure sustainable growth in the years ahead, we have been evaluating and promoting a rebuilding of the Group's business portfolio. From the perspective of business selection and concentration, we will restructure operations at Nisshin Pharma Inc. (ending the fine chemicals business, transferring the healthcare foods business elsewhere within the Group)
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10 II. Fiscal 2026 Forecasts
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11 1. Fiscal 2026 Forecasts We project an increase in net sales, with measures to expand sales in the processed food business, increased sales in prepared dishes and other prepared foods businesses combined with increased construction of large-scale plants in the Engineering business, more than offsetting falling wheat flour prices caused by wheat price revisions in the domestic flour milling business We forecast that both operating profit and ordinary profit will increase, reflecting expanded earnings in the Australia flour milling business and growth in shipments in the Processed Food Segment, as well as the effects of price revisions in each business * Figures rounded to the nearest 100 million yen. Fiscal 2025 Results Fiscal 2026 Forecasts YoY difference YoY change Net sales 8,515 8,700 +185 +2.2% Overseas sales ratio 30.8% 30.1% - - Operating profit 464 500 +36 +7.8% Ordinary profit 492 530 +38 +7.7% Profit attributable to owners of parent 347 390 +43 +12.4% (100 millions of yen) Profit attributable to owners of parent is projected to increase, benefitting from further reductions in cross-shareholdings in addition to higher ordinary profit In fiscal 2026, we expect the business environment to be highly uncertain due to the varying responses of different countriesto U.S. tariff policies. Currently, our forecast is as follows:
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12 2. Fiscal 2026 Forecasts (By Segment) Fiscal 2025 Results Fiscal 2026 Forecasts YoY difference YoY change Net sales [Overseas sales] 8,515 [2,622] 8,700 [2,622] +185 [-0] +2.2% [-0.0%] Flour Milling 4,436 4,340 (96) (2.2%) Processed Food 2,063 2,170 +107 +5.2% Prepared Dishes and Other Prepared Foods 1,561 1,640 +79 +5.1% Others 456 550 +94 +20.7% Operating profit [Overseas operating profit] 464 [171] 500 [195] +36 [+24] +7.8% [+14.1%] Flour Milling [following adjustments to the previous year's results] * 281 [294] 292 +11 [-2] +3.8% [-0.7%] Processed Food [following adjustments to the previous year's results] * 64 [55] 80 +16 [+25] +24.9% [+45.5%] Prepared Dishes and Other Prepared Foods [following adjustments to the previous year's results] * 58 [56] 60 +2 [+4] +2.9% [+7.8%] Others [following adjustments to the previous year's results] * 63 [62] 68 +5 [+6] +8.8% [+10.5%] Adjustments (Intersegment eliminations, etc.) (2) 0 +2 - Ordinary profit 492 530 +38 +7.7% Profit attributable to owners of parent 347 390 +43 +12.4% (100 millions of yen) (Amounts of less than 100 million yen are rounded to the nearest million yen.) * From fiscal 2026, the criteria for allocating shared Company-wide expenses to each segment will be revised. For reference purposes, the previous year's results, year-on-year difference and year-on-year percentage change after adjusting for the impact of this change have been included together with the current figures in square brackets
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Others Segment, etc. Prepared Dishes and Other Prepared Foods Segment 13 3. Fiscal 2026 Forecasts — Year-on-Year Analysis Analysis of Change in Operating Profit (vs. FY2025) Flour Milling Segment ¥(0.2) billion Processed Food Segment ¥+2.5 billion 210 Sales revenue Bran prices Cost related and others Overseas operating profit Sales revenue Cost related and others Overseas operating profit ¥(0.4) billion ¥+0 billion ¥(1.4) billion ¥+1.6 billion ¥+0.7 billion ¥+1.2 billion ¥+0.6 billion ¥+0.4 billion ¥+0.9 billion ◼ Changes to the allocation criteria for shared Company-wide expensesFY2025 Results ’FY2026 Forecast ¥46.4 billion ¥50.0 billion (¥+3.6 billion YoY) • Since the shift to a holding company structure in 2001, expenses of the Group head office, which functions as the Group's holding company, had been borne by each business according to its size • The role of the Group head office has also changed due to active efforts to evolve the Group's business portfolio in the 2010s → Growth investments have increased to fund new acquisitions, subsequent PMI activities and compliance with local laws and regulations To coincide with FY2026 when per-business ROIC management will be implemented, we will revise how shared Company-wide expenses (Group head office expenses) are allocated to better reflect actual conditions * As a result of the revisions, the amounts borne by the Processed Food segment and prepared dishes and other prepared foods businesses will increase, with a decrease in the flour milling business* While the allocation criteria for shared Company-wide expenses will be changed from FY2026, in the above analysis the FY2025 results have been adjusted to remove the effects due to this change : Increase in profit : Decrease in profit
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14 (1) Stimulate the Group’s ability to grow by restructuring the business portfolio (2) Respond to cost increases including personnel expenses under an inflationary environment (3) Implement structural reforms to expand earnings and execute new strategies in the Australia flour milling business (4) Steadily improve results in the India Yeast business to return to profitability (5) Speed up automation and labor-saving initiatives 4. Top Priority Measures for FY2026
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15 III. Progress of the Medium-Term Management Plan
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16 1. Progress of Numerical Targets in the Medium-Term Management Plan (MTP) Net sales (100 millions of yen) 6,797 8,515 8,700 9,500 Operating profit (100 millions of yen) 294 464 500 570 EPS (Yen) 59 117 135 140 ROE (%) 4.0 7.0 7.9 8.0 Progress towards the Targets for the Final Year of the Medium-Term Management Plan (MTP base year) FY2025 Results FY2027 Targets (MTP final year) FY2026 Forecasts FY2022 Results ➢ ➢ In FY2025, we secured increased profits in in the Overseas flour milling business and prepared dishes and other prepared foods businesses, which represent our growth drivers, in order to drive the Group's performance. The size of operations has significantly expanded over the course of the current Medium-Term Management Plan We will aim to reach the profit level set out in the final year of the Medium-Term Management Plan [operating profit of ¥57 billion] as a target ➢ However, in FY2025 we were late in responding to rising costs such as personnel expenses. This contributed to reduced profits and temporarily slowed the pace of the Group's overall growth ’ From FY2026 and beyond, we will steadily tackle each of the challenges outlined in our top priority measures to resume our growth trajectory
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17 2. Profit Growing During Medium-Term Management Plan 2026 [Net Sales and Operating Profit] Changes in Net Sales and Operating Profit 231 205 272 294 328 478 464 500 570 4,420 5,261 6,795 6,797 7,987 8,582 8,515 8,700 9,500 200 300 400 500 600 4,000 7,000 10,000 FY2012 FY2015 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 (Current MTP base year) (Forecast) (Target) Medium-Term Management Plan 2026 (FY2023-FY2027) Medium-Term Management Plan (FY2013 through FY2015) Medium-Term Management Plan (FY2016 through FY2021) Profit underwent significant growth during the current Medium-Term Management Plan [Net sales] (100 millions of yen) [Operating profit] (100 millions of yen)Net sales Operating profit ～～ ～～
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18 3.Profit Growth During Medium-Term Management Plan 2026 [EPS and ROE] Changes in EPS and ROE 44 53 64 59 107 117 135 140 4.7% 4.6% 4.6% 4.0% 6.9% 7.0% 7.9% 8.0% 3% 4% 5% 6% 7% 8% 9% 40 60 80 100 120 140 160 FY2012 FY2015 FY2021 FY2022 FY2024 FY2025 FY2026 FY2027 (Current MTP base year) (Forecast) (Target) Medium-Term Management Plan (FY2013 through FY2015) Medium-Term Management Plan (FY2016 through FY2021) ～～ (Yen) [ROE][EPS] We will aim for further growth in EPS toward the target in the Medium-Term Management Plan ROEEPS * The FY2023 results are omitted due to a net loss due to the recording of impairment losses in the Australia flour milling business Medium-Term Management Plan 2026 (FY2023-FY2027) Significant growth during the current MTP period
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19 IV. Corporate Value Enhancement Initiatives 1) The Group's Future-oriented Growth
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To address cost increases including personnel expenses that have become pronounced since FY2025, in FY2026 we will implement appropriate price increases to secure an earnings base for sustainable growth 20 1)-1. Securing an Earnings Base Top Priority Measure (2) Responding to rising costs in domestic operations (details factored into FY2026 plans) ¥(1.5) billion ¥(3.3) billion ¥+4.8 billion ¥+1.5 billion (A) FY2025 Delay in passing on cost increases to prices (B) FY2026 Estimate of rising costs (C) FY2026 Pass through costs to prices (B+C) Contribution to increased profit this fiscal year • We will try to recover all cost increases that occurred up to FY2025 with a target of FY2027, the final year of the current Medium-Term Management Plan • In our core domestic businesses, we will implement product price revisions in July and August 2025, with pricing decisions taking into account increases in costs, including personnel expenses • To address cost increases, we will continue working to improve productivity, but those costs that cannot be covered through our own efforts will be appropriately passed on to product prices in the future.
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As a corporate group responsible for providing food infrastructure, we will use the cash earned from the Group's core businesses to invest in growth areas and also proactively investing in improvements to those core businesses themselves, in an effort to achieve the sustainable growth of the overall Group 21 1)-2. Approach to the Group's Future Profit Growth Achieving sustainable growth of the entire Group Growth areas Core businesses Investment in growth areas Domestic flour milling Domestic processed food Domestic yeast Overseas business Prepared dishes and other prepared foods businesses Investment to strengthen core businesses
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22 IV. Corporate Value Enhancement Initiatives 2) Strategies for the Main Businesses Driving the Group's Growth
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Changes in Operating Profit Continued productivity improvements Initiatives Towards Sustainable Growth in FY2026 (1) This core business accounts for roughly one-fourth of the Group's operating profit, and engages in stable operations supporting one of Japan's key stable foods. To ensure a stable earnings base into the future, we will steadily implement various measures 23 2)-1. Domestic Flour Milling Business (1) Core businesses 78 80 147 121 116 70 90 110 130 150 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 (100 millions of yen) Revising wheat flour prices in light of changes to wheat prices • In the wheat flour price revisions to be made in July 2025, we will announce revisions that reflect transportation costs, personnel expenses and other factors in addition to changes to wheat prices → Although we will continue to improve productivity and work on cutting expenses, we recognize that the trend of rising costs will continue in the future. We will implement these price revisions while working to gain the understanding of customers ➢Mizushima Plant begins operating Production capacity: 550 tons/ day (Raw materials basis) Investment amount: Approx. ¥18 billion Coastal plant ratio: 83% → 92% (Nisshin Flour Milling) • Consolidating the latest technologies verified at our flour milling plans in Japan and overseas at the Mizushima Plant (for example, automated packaging material transportation) • The plant will promote digital adoption, the optimization of various management tasks with the use of AI, and production process automation and standardization [achieving a "connected plant"] → Taking steps towards further automation and labor-saving (MTP base year) (Target)(Forecast) [Achievement] [Issue] In FY2026, we forecast a decline in profit, in part due to increased depreciation expenses (approx. ¥2 billion) associated with the Mizushima Plant commencing operation. However, we will steadily execute a range of initiatives in an effort to maintain and improve profit levels • Responding to various increasing costs including personnel expenses and logistics costs → Implementing price revisions and tackling further productivity improvements Maintaining and improving profit levels (tentati ve) • Began operation in May 2025. The inland plants scheduled for closure (Okayama Plant, Sakaide Plant) will continue operating up to part-way through FY2026 From FY2027 and beyond, we will realize improved production efficiency due to full-scale plant consolidation, and see the effects of various cost reductions, including raw material transportation costs, personnel expenses, and non-personnel expenses ◼ Achievements and challenges in FY2025 • Expanded shipping volumes due to increased inbound demand and the effects of sales expansion efforts • Maintain bran prices
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24 2)-1. Domestic Flour Milling Business (2) Core businesses Initiatives Towards Sustainable Growth in FY2026 (2) Achieving a higher market share Overall optimization initiatives in collaboration with Kumamoto Flour Milling Initiatives Review and future Production • Build an optimum production system in the Kyushu area • Improve productivity at Kumamoto Flour Milling • In FY2025 we regularly engaged in reciprocal exchanges including information exchange sessions. Work to incorporate our expertise into actual production lines and improve production efficiency this fiscal year Sales • Expand sales utilizing the sales channels of the Nisshin Seifun Group • Consider nationwide sale of rice flour and other goods through Nisshin Flour Milling • In February 2025, commercial-use prepared mix products using rice flour from Kumamoto Flour Milling were launched. Continue to actively develop sales activities leveraging the sales networks of each business. Development • Enhance development of technologies and proposal capabilities through the sharing of technical information and expertise, and the strengthening of coordination • Launch products jointly developed by both companies on the market • Assess the properties of each other's products and share information while continuing to conduct secondary processing test evaluations and develop applications for differentiated products Procurement • Reduce procurement costs through joint purchasing and coordination in logistics and other areas • Promote stable supply by steadily procuring raw materials • Share the logistics network of Nisshin Flour Milling [trucking, shipping, etc.] with Kumamoto Flour Milling to promote procurement cost reductions. Continue to promote similar initiatives in the future We will work to further increase market share in FY2026 and beyond, enhancing our market presence to a greater degree (*) Based on Nisshin Seifun Group research Including Kumamoto Flour Milling, the Nisshin Seifun Group's market share is over 40% (*) [Initiatives to increase market share] • Promoting the development of a new market [health foods market] through Amuleia, our high dietary fiber wheat flour →Development of purpose-built e-commerce site, active participation in trade shows, etc. • Pursuing value-based sales in greater depth →Human resource development [strengthening the ability to engage in dialogue with and suggest products to customers] → Improved coordination across the Group [Processed food business / yeast businesses]
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Reduced manufacturing costs (implementation of cost reduction measures) Revisions to product prices (appropriate price pass- through) FY2026 initiatives to restore profit levels (1) To restore profit levels, we will promote cost improvements and the development of high value-added products, realizing increased shipments from the effects of new products. In addition, we will actively run sales promotions to boost recognition and encourage purchases across our corporate brand, family brands and individual products 25 2)-2. Domestic Processed Food Business (1) Core businesses [Achievement] • Expanded shipments of room temperature home-use products [wheat flour, pasta, pasta sauces, and so on] by implementing measures to increase sales [Issue] • Delays in making price revisions to address various cost increases including raw materials In FY2026 we will pursue various measures with a focus on taking action on rising costs, promoting new product development and the introduction of high added value, and driving sales promotions. This will restore the performance levels we achieved in FY2024 and led to further growth in FY2027 and beyond Action on rising costs Catch up with cost increases • We announced product price revisions scheduled for July and August 2025 earlier than usual → Make early announcements to customers and steadily implement price revisions • Strengthen and thoroughly enforce progress management (head office management) on the execution side • Promptly analyze the factors behind ongoing cost increases and formulate countermeasures • Implement structural reforms by undertaking a fundamental review of production systems, such as reducing SKUs by 15%, procuring raw materials and controlling personnel expenses Achievements and challenges in FY2025
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FY2026 initiatives to restore profit levels (2) 26 2)-2. Domestic Processed Food Business (2) Core businesses We ran an advertising campaign that strengthened coordination between the corporate brand and family brand (*). We strengthened the brand strategy and enhanced the brand of both the corporate and product brands on a reciprocal basis ◎ Ma・Ma Rebranding (*) Brands used across multiple product categories In light of changing lifestyles and values, we used the 70th anniversary as an opportunity to develop a new design and revamp the concept ➢Initiatives to boost recognition and encourage purchases across corporate brand and individual products ◎ Daily shipment progress of household-use pasta (March 2025) Units: tons ✓ Develop products leveraging the technological expertise of the Nisshin Seifun Group while embracing the themes of authentic, simple, healthy and eco-friendly ✓ Launch added value products in response to the polarization of consumption and diversified food demands ✓ Enhance the lineup of commercial-use high value- added products that address labor shortages We aim to record annual sales ¥7.0 billion from new products ◆Home-use products ◆Commercial-use products Promoting new product development and the introduction of high added value Driving sales promotions • Make proposals to meet new texture preferences and satisfy demands for time-efficiency [flour milling technologies × quick boiling technologies] • Make proposals to deal with the declining trend in deep- fried food consumption [Wheat flour processing technologies] • Suggest products aimed at DINK and DEWK demographics [focus on ingredients, packaging designed to be heated in a microwave as-is] • Make proposals to address labor shortages [prepared mix technologies × natural defrosting technologies] Shipments have grown significantly since the start of the advertising campaign on March 15 vs. Previous Year: 109.5% vs. Two years ago: 119.1%
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In FY2026, we will execute the new strategic consolidated in the previous fiscal year, steadily achieving business growth with a view to the duration of the Medium-Term Management Plan and beyond 27 2)-3. Australia Flour Milling Business Growth businessesTop Priority Measure (3) Change in operating profit in the Australia flour milling business 20 40 60 FY2024 FY2025 FY2026 FY2027 [Achievement] [Issue] (Forecast) (Target) ◼ FY2025 Challenges and Achievements (100 millions of yen) In FY2025, in parallel with integration into the new ERP system, a business profitability and competitiveness analysis was conducted, and a structural reform plan was formulated as a new strategy. Equipment automation and production system streamlining measures have already begun and shifted into the implementation phase We will raise our business competitiveness to the next level • Three mission-critical systems were integrated into the new ERP system.Additional costs were incurred on a temporary basis, but increased profits were secured • Implemented price hikes and new sales promotions amid severe inflationary conditions (Wheat flour shipment volume: up 3.7% year on year) New Strategy: Allied Pinnacle Structural Reform Plan The new strategy is an action plan structured mainly around business streamlining (transformation), while also envisioning the introduction of added value. In light of feasibility and the level of difficulty, the strategy comprises three optional levels: Plan A, Plan B and Plan C Plan A and B (Classified as A and B based on difficulty, with the aim of achieving progress over the next two years) • Streamlining of the supply chain - rationalization of production and logistics systems • Streamlining of production processes through investment in automation • Additional costs incurred due to the introduction of a new ERP system, and a temporary decline in production efficiency • Ongoing increases in personnel expenses, logistics costs and the costs of some raw materials ➢ FY2026 Action Plan • As the first stage of structural reform, Plan A has already begun, and is based on the existing site. The amount invested is minor (approximately AU$9 million), but is expected to produce effects (ROI of 43%) • The detailed design of Plan B has begun, and is proceeding smoothly • Increasing sales of high value-added products → Market launch of Wise Wheat®, a wheat flour brand with high dietary fiber content (January 2025). Sales promotion has been strengthened with a brand strategy that leverages exclusive distribution rights Bread made using a Wise Wheat mix is being sold at roughly 700 of the in-store bakeries of Australia's largest supermarket chain Plan C Future-oriented optimization plan ◼ Trend in Profit Increase/Decrease [vs. FY2022 levels] FY2023: ¥+0.8 billion FY2024: ¥+1.2 billion FY2025: ¥+1.4 billion FY2026 Forecast:¥+2.4 billion FY2027 Target: ¥+4.0 billion
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FY2026 Initiatives to Improve Performance Towards achieving full plant operation during the course of the Medium-Term Management Plan, we will pursue measures to expand sales while revising product prices and working to reduce costs for improved productivity 28 2)-4. India Yeast Business Growth businessesTop Priority Measure (4) Achievements and challenges in FY2025 [Achievement] • A sales market share of approximately 25% had been achieved as of March 31, 2025 * Based on research by Nisshin Seifun Group • Use by major nationwide bakeries has expanded • Our presence was expanded by proactively holding Baker's meet events [Issue] • Increased costs due to molasses prices remaining high • Delays in product price revisions → implemented price revisions in areas where we have a large market share 10% 18% 25% 0% 10% 20% 30% August 2022 March 2023 March 2024 March 2025 Change in sales market share * Based on research by Nisshin Seifun Group Baker’s meet events (breadmaking workshops) Held a total of 17 times in FY2025 Expand market share ➢ Yeast for bakery use • Further strengthen efforts in conjunction with major bakeries, etc. • Continue to make approaches to potential customers in southern areas where we have a relatively low market share ➢ Yeast for ethanol [Sales expansion initiatives] ✓ Launch of bread improver products ✓ New release of bakery-related commercial products (cake mixes, cake gels) Expand the product lineup, pursue the development of new markets and other opportunities, and strive to further expand sales • The market for yeast for ethanol is also expanding in size due to increased domestic bioethanol production volume in India • Enter into new contracts with local distributors to strengthen sales • Also secure favorable customer evaluations regarding the quality of our products Revisions to product prices Reduced manufacturing costs • Implement cost reductions in each production process ✓ Improved productivity through the introduction of new yeast strains with high fermentation capacity → Support provided through Japanese engineers ✓ Review of packaging materials, etc. Although our competitors have not emulated our product price revisions, we will continue to carefully monitor the market environment and our relationships with customers as we make price revisions. Steadily implement initiatives to deal with each cost increase (Commencement of plant operations)
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Changes in Operating Profit We will strengthen our efforts in all areas of operation, namely the West (California), South (Texas) and East (Virginia). With investment costs (depreciation expenses) on the rise, in FY2026 we will continue to maintain high profit levels while considering growth investments to further expand operations 29 2)-5. US Flour Milling Business Growth businesses 0 50 100 FY2022 FY2023 FY2024 FY2025 FY2026 (100 millions of yen) Maintaining high profit levels (MTP base year) (Forecast) Progress of improvements to production systems ✓ Despite softness in market prices for bran, we ensured high sales margins and maintained the profit levels that were increased in FY2023 ✓ We will work to increase shipments by strengthening the supply system, and will work to maintain and expand the revenue base again in FY2026 Winchester Plant (East) Extension work (modification of existing production lines) is expected to be completed by around Summer 2025 Investment amount: Approx. ¥1.4 billion We expect that shipments will expand immediately after entering operation, impact due to pending supply requests from local customers Saginaw Plant (South) Production line extension work completed in March 2025 (production capacity increased by 600 tons / day, a 40% improvement) Investment amount: Approx. ¥6.0 billion The investment is expected to contribute to profits from the first year. We will carefully monitor the demand situation and ramp up to full utilization in around five years Los Angeles Plant (West) Production line expansion work completed in November 2023 (production capacity increased by +150 tons / day) Investment amount: Approx. ¥1.4 billion Achieved consolidation from our nearby plants to help reduce transportation costs Future Growth Strategy Innovation & Technical Center (ITC)➢ We will aim to steadily expand shipments, leveraging cost competitiveness in the areas we operating as a base ➢ An Innovation & Technical Center (ITC) was opened in March 2025 The ITC will enhance our market presence in both structural and non-structural terms → Through the ITC we will further demonstrate the technological and support capabilities cultivated in Japan that cannot be emulated by our competitors ➢ Consideration of growth investments to realize further business growth (including M&A) ITC (integrated within the Saginaw Plant) • Enhanced product testing (prototyping and taste testing) with customers • Technical support and improvement suggestions in line with the challenges faced by customers • Provision of expert information related to product development • Consolidation of data related to North America (ingredients, products, etc.) (Effects of new ITC establishment)
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In the overseas businesses operated entirely locally, which represent growth drivers, we will accelerate growth of the B-to-C business in Vietnam, while pursuing further development of ASEAN and European markets 30 2)-6. Overseas Processed Food Business Growth businesses ✓ Taking a broad view of the ASEAN market, we are looking to expand local sales businesses outside the areas of Thailand, Vietnam and Indonesia where we have production sites ✓ Expanded sales by enhancing the product line up including the introduction of new technologies ✓ Plans to add another production line to the Vietnam prepared mixes plant due to healthy sales of commercial-use prepared mixes ✓ Since the full-scale entry into the category of retort-packed pasta sauces in September 2024, the products have been introduced at over 2,000 stores, primarily local mass merchandisers. ✓ We also have plans to start selling quick boil spaghetti and frozen pasta locally ✓ We are actively implementing sales promotion and advertising campaigns to expand sales channels We will put in place sales and supply systems to further strengthen the B-to-B prepared mixes business in the ASEAN region ASEAN market development Vietnam B-to-C business Acceleration of business growth ✓ We have plans to begin selling quick boil spaghetti in Europe ✓ We will modify production lines in our Turkey-based production site and build a stable supply system ✓ We will also make use of trade shows and similar events overseas to expand sales HAYAYUDE global strategy Aiming to spread HAYAYUDE around the world 30
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2.3% 2.2% 3.5% 3.7% 3.7% 10 30 50 70 2% 3% 4%Operating profit Operating profit margin FY2026 Initiatives for Business Growth Enhancing frozen prepared foods Speed up automation and labor-saving measures [Top priority measure (5)] We will speed up the introduction of automation and labor-saving initiatives to enhance person-hour productivity, strengthening our operating foundations while striving to further improve profit margins 31 2)-7. Prepared Dishes and Other Prepared Foods Business Growth businesses Changes in Operating Profit ◆ Trends in person-hour productivity (Tokatsu Foods Co., Ltd.) 0% 5% 11% 15% 0% 5% 10% 15% 20% [Operating profit] (100 millions of yen) FY2022 (MTP base year) FY2023 FY2024 FY2026 (Forecast) FY2025 FY2022 FY2023 FY2024 FY2025 ◆ Prioritize initiatives in the prepared dishes and other prepared foods business even within the Nisshin Seifun Group to produce results at a faster pace • We have selected 17 themes including the automation of food placement processes and inspection processes. Efforts are underway to meet the target of completing introduction during FY2026 • The DX initiatives pursued by Tokatsu Foods Co., Ltd. have been released through DX Report 2024. Going forward we will continue to strengthen the promotion of DX while also encouraging the active exchange of personnel from inside and outside the business to drive an organization-wide rollout As there is ample room for improvements in productivity, we will aim to further increase person-hour productivity <Product development in new categories> • Frozen savory bread products designed to be heated in a microwave • Frozen bento meals that can be enjoyed after thawing in a refrigerator ◆ We will work on product differentiation and the introduction of added value, developing the frozen prepared foods business into a second pillar of our operations Increase the top line ◆ Acquire new trading zones. Enhance product development and proposal capabilities and work to scale up sales FY2026 Net Sales Forecast: ¥164.0 billion (+¥7.9 billion or +5.1% year on year) [Operating profit margin] Person-hour productivity continued to improve during FY2025 Equipment to automate the packing of prepared food products into containers 31 33 54 58 60 (Progress with fiscal 2022 as the base year) → Development of frozen bread products utilizing Amuleia → Development of freezing technologies to enhance added value
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0 1,200 2021 2022 2023 2024 2025 [Forecast] 2026 [Forecast] 2027 [Forecast] 2028 [Forecast] GW In the solar battery market which is expected to continue to grow in the future, we will drive initiatives to realize further profit growth utilizing extra fine metal mesh manufacturing technologies 32 2)-8. Mesh Cloth Business +2 +9 +8 +11 +21 0 5 10 15 20 25 In FY2025, shipment stagnated due to spec changes to solar panels and inventory adjustments caused by excess production. However, in FY2026 we expect that shipments will recover in the second half. We will aim to return to a growth trajectory with the aim of achieving our final-year project target Operating profit: Growth trend over time (FY2022 base) FY2027FY2025FY2022 FY2023 (Forecast)(MTP base year) FY2024 (Target) (100 millions of yen) FY2026 Initiatives Towards Sustainable Growth in FY2026 -Metal meshes for solar batteries: Hydrogen and fuel cell battery manufacturing-related: Electric Vehicle-related: ✓ New launch and expanded sales of new ultra-fine products that utilize our technological capabilities • Expansion of high-performance mesh cloth to target markets (Europe, China and Japan) → Development and sale of new materials and products combined with the strengthening of manufacturing systems to capture the market Maintain and expand global market share (approx. 40%) ✓ Investment in expanded facilities (Approx. ¥1 billion planned for FY2026) Further enhancement of manufacturing technology capabilities ✓ Investments in human resources / human resource development Improved production capacity and organizational capabilities ✓ Improved functioning of research facilities Strengthened ability to develop proposals for customers • Development of new users of high-performance filters for EVs • Market launch of high-performance and differentiating products in the EV battery material manufacturing process ◆ Trends in worldwide solar battery demand (Based on Nisshin Seifun Group research) The market is expected to grow in the future with strong worldwide demand
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✓ Improved proposal development and consulting capabilities ✓ Streamlining existing business and improving productivity ✓ Improved utilization of expertise and transfer of skills Plant construction 2)-9. Engineering Business Collaboration using plant equipment for EVs, electronic components, food production and so on → Promoting the thorough adoption of digital solutions for all business processes Building on our world-class powder technologies and ability to respond to customers with DX-driven differentiation, we are working to further enhance profitability and earning power. Collaboration with the mesh cloth business In-depth pursuit of DX engineeringStrengths of the engineering business KnowledgeQuotation-based procurementDesign <Three elements of particular importance> Differentiation from competitors We aim to build a management base for sustainable growth and transformation Powder technologies • World-class powder technologies including powder grinding and classification(*) technologies and nanoparticle processing * Dividing powder into multiple particle groups according to particle size • Adopting a customer perspective for project implementation and design of factories and plants while leveraging engineering technologies cultivated over many years Increased orders due to large-scale projects in food and non-food areas FY2026 Net Sales Forecast: +33% year on year Engineering Business Mesh Cloth Business Demonstrating synergies through the advanced technological capabilities of both businesses 33
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34 IV. Corporate Value Enhancement Initiatives 3) Further Enhancement to Capital Policies
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35 3)-1. Capital Policies (1): Role of the Balance Sheet Fluctuations in the Balance Sheet and Profit & Loss Statements Due to the Implementation of Capital Policies Balance Sheet (B/S)Profit and Loss Statement (P/L) To enhance corporate value, we will pursue initiatives aimed at improving capital efficiency. More specifically, we will eliminate inefficient assets and ensure financial health while improving our capital structure, working to boost capital efficiency on an ongoing basis by managing ROIC on an operating division basis. ➢ We will introduce operating division-level ROIC management [targeting 7% company-wide for FY2027] in an effort to raise profitability above the cost of capitalLiabilities Profit Profit margin improvement Business assets Increase in sales Shareholders’ equityROIC management Reduction in cash and cash equivalents, cross-shareholdings (Management) (Financing) Expenses Shareholder returns and utilization of debt ➢ We will actively eliminate cross-shareholdings with reduced rationale for holding in line with our cross-shareholdings reduction policy. The cash generated from the reductions will be used for growth investments and other initiatives. Cash and cash equivalents on hand will be maintained at a level roughly one month of consolidated net sales, taking into account the Nisshin Seifun Group's social responsibility to ensure the stable supply of staple foods Cash and cash equivalents / cross-shareholdings that the rationale of the holding has been diminished. ➢ From the perspectives of capital efficiency and financial health, we will actively pursue shareholder return measures while also making use of interest-bearing debt by leveraging our funding capacity [In the medium- to long-term we will target a net D/E ratio of 0.3x]
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36 3)-1. Capital Policies (2): Cash Flow Cash flow plan during the period of the five-year Medium-Term Management Plan (FY2023-FY2027) (Inflows) (Outflows) Growth investment Maintenance and renewal investments ¥218.0 billion Shareholder returns ¥88.0 billion Asset sales Interest-bearing financing, etc. ¥46.0 billion Cash flows from operating activities ¥260.0 billion Targets for the final year of the MTP (FY2027) Net sales ¥950.0 billion Operating profit ¥57.0 billion Reduction of cross- shareholdings 40.0 billion yen or more over the next five years (FY2025-FY2029) Shareholder returns • Raise the consolidated payout ratio to be achieved by FY2027 to around 50%, excluding profits and losses from non-recurring or extraordinary factors • In January 2025, treasury share acquisitions worth ¥13.9 billion were carried out. Looking ahead, we will evaluate further shareholder returns (including treasury share acquisitions) while taking into account financial conditions and other factors Amount Invested FY2023-FY2025 FY2026- FY2027 ¥104.3 billion ¥114.0 billion Cash generated over the course of the Medium- Term Management Plan will be actively utilized for growth investments and similar endeavors * See page 38 for segment-specific investment amounts ◎ Basic policy of using up the cash generated over the course of the Medium- Term Management Plan on investment and shareholder returns Flexible allocations based on conditions Enhancing corporate value
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Breakdown of ROIC Trends in ROE 37 3)-2. Promoting Capital-Efficient Management 2023 Results 2024 Results ROIC improvement efforts in each business Flour milling segment 7.2% 6.5% ➢ Improve performance in the Australia flour milling business and the India yeast business ➢ Responding to rising costs including raw materials, transportation and labor ➢ Aggressive investment in growth areas ➢ Reorganization of unprofitable business Processed food segment 5.6% 4.1% Prepared dishes and other prepared foods segment 7.6% 7.8% Other(*) 3.0% 3.3% Groupwide 6.2% 5.7% 6.9% 7.0% 7.9% 8.0% (MTP base year) FY2023 FY2024FY2022 FY2027 (Target for the final year of the Medium- Term Management Plan) (*) Other segments + company-wide assets We will work to continually achieve capital profitability that exceeds the cost of capital and further expand the equity spread FY2026 6% 5% 4% (3%) 8% 7% Our estimate on a CAPM basis is around 5%. However, we assume that expected yields [inverse of PER, around 7-8%] and the level demanded by capital markets is a little higher than that. Cost of shareholders' equity While we recognize that our ROE is greater than the cost of capital, we need to improve it further. We will pursue initiatives that look beyond the ROE target set out in the Medium-Term Management Plan (8.0% in the final year of the plan). Aiming for continued improvement 9% (Forecast) FY2025
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38 3)-3. Future Investments Trend in growth investment, maintenance and renewal investments 176 187 301 301 441 560 580 100 300 500 700 (MTP first year) (Forecast)(Forecast) (100 millions of yen) Amount Invested HighlightsFY2023- FY2025 FY2026- FY2027 Flour milling segment ¥68.8 billion ¥54.0 billion ➢Domestic flour milling Construction of the new Mizushima Plant, acquisition of Kumamoto Flour Milling, addition of a silo for wheat raw materials at the Tsurumi Plant ➢US flour milling Extension and expansion work at three plants [Los Angeles, Saginaw and Winchester] Additional growth investments are also being considered ➢Group head office Restructuring offices in the area close to the head office Growth investment will also be carried out in the prepared dishes and other prepared foods businesses and processed food business. We will boost our presence in each business and proceed with investments aimed at capturing the market Processed food segment ¥17.5 billion ¥25.0 billion Prepared dishes and other prepared foods segment ¥11.0 billion ¥16.0 billion Others ¥7.0 billion ¥19.0 billion Groupwide ¥104.3 billion ¥114.0 billion Investment Amounts (Results and Forecasts) Including M&A projects [acquisition of Kumamoto Flour Milling Co., Ltd.] When making decisions on investment projects, we will continue to apply discount rates based on the target country and details of the business ➢ Flexible allocation will be made from FY2026 to FY2027, reflecting the operating environment in each business and other factors ➢ Medium-Term Management Plan 2026 (FY2023 through FY2027) FY2022 FY2023 FY2024FY2021 FY2025 FY2026 FY2027
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39 3)-4. Shareholder Returns 72 78 86 95 101 110 116 119 134 161 174 50 70 90 110 130 150 170 FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026 Total dividends (Plan) Total dividends and dividend payout ratio (100 millions of yen) Dividend payout ratio (excluding extraordinary profits and losses from FY2025 onwards) ¥24 ¥26 ¥29 ¥32 ¥34 ¥37 ¥39 ¥40 ¥45 ¥55 ¥60 41.2% 40.3% 40.6% 45.1%42.7% 57.9% 66.2% 51.1%42.2% 48.7% For the fiscal year ended March 31, 2025, we will pay a dividend of ¥55 per share, an increase of ¥10 from the previous fiscal year. For the fiscal year ending March 31, 2026, we will pay a dividend of ¥60 per share, a rise of ¥5 from the year-earlier level. In effect an increased dividend for a thirteenth consecutive year is planned We aim to increase the consolidated payout ratio to around 50% by the final year of the current Medium- Term Management Plan (FY2027). The payout ratio is calculated by excluding non-recurring profits or losses from profit attributable to owners of parent. Looking ahead, we will evaluate further shareholder returns (including treasury share acquisitions) while taking into account financial conditions and other factors * In January 2025, treasury share acquisitions worth ¥13.9 billion were carried out ➢ ➢ ➢ (Plan) Dividend per share －
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40 3)-5. Reducing Cross-Shareholdings In light with our reduction target, in FY2025 we implemented steady reductions of cross-shareholdings. We will continue to make reductions beyond the period of the Medium-Term Management Plan Cross-shareholdings Reduction Amounts and Targets FY2023 (MTP first year) FY2024 FY2025 FY2026- FY2029 Annual ¥29.4 billion ¥1.5 billion ¥9.0 billion ¥32.0 billion or more ¥70.0 billion or more Cross-shareholding reduction target Over a five-year period from FY2025 to FY2029, we will reduce cross- shareholdings to the amount of at least ¥40 billion [Average of around ¥8 billion a year] ➢ In FY2025 we steadily implemented reductions in light with the target ➢ In FY2026 we will continue to carry out reductions after confirming the rationale for holding the shares Ways to use the cash obtained from reducing cross-shareholdings Cash gained from the reduction of cross-shareholdings will be used for growth investments and similar endeavors (*) Calculated using the stock price as of March 31, 2025. (*)
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41 IV. Corporate Value Enhancement Initiatives 4) ESG Initiatives
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4)-1. Human Resource Strategy (1) In keeping with a human resource strategy aimed at achieving our business strategy, we will adopt a medium- to long-term perspective in implementing measures that will help secure and shift human resources while fostering the development of a resilient organizational culture Direction of Measures to Achieve the Human Resource Strategy Corporate Motto and Corporate Philosophy Human resource strategy aimed at achieving our business strategy Basic Human Resources Philosophy "The basis of business is built on trust" "Be in tune with the changing business climate" "Contributing to a healthy and fruitful life for all" Respect for People, Mutual Trust - a company and its employees are partners who share growth and development - Enhancing human resource capabilities Strengthening organizational capabilities • Secure human resources and shift human resources to help advance our core businesses in greater depth and develop new/growth areas • Foster the development of a resilient organizational culture that makes use of diverse experiences and values to flexibly adapt to challenges and transformation The ideal human resources we seek: Personnel who adapt to the changing times and lead challenges and transformations Autonomy: Learn and think for yourself, and face the consequences Challenges: Continue to take on the challenge of new things ahead of the times without fear of failure Trust: Be trusted from inside and outside the company, and have the ability to trust those around you and entrust tasks to them Cooperation: Cooperate with a diverse range of others to create new value Strengthen recruitment • Qualitative and quantitative reinforcement of personnel Strengthen development capabilities • Cultivating human resources who will drive the company's growth Strengthen HR utilization capabilities • Further utilization of human resources from a Group-wide perspective Work style reforms • Enhanced productivity and promotion of DE&I Review personnel wage systems • Attractive personnel wage system that supports human resource utilization Strengthened recruitment reflecting the human resource portfolio Improved training of management candidates from a medium- to long-term perspective Promotion of human resource exchanges aimed at creating personnel synergies Promotion of productivity enhancement measures (Streamlining through DX utilization) Compensation system that considers external competitiveness Stepped up efforts to enhance recruitment branding Strengthen measures to promote digital transformation and develop global human resources Enhanced position management Measures to improve engagement Employment system for securing diverse human resources Enhancements to recruitment channels leading to the securing of diverse human resources Provide more opportunities for proactive, continuous learning More effective utilization of human resources information Promote the active participation of diverse human resources (Women's participation and advancement, human rights due diligence, etc.) A ranking and evaluation system that rewards roles and achievements 42
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43 4)-1. Human Resource Strategy (2) Securing and shifting human resources to realize a human resources portfolio Further Promoting Women's Participation and Advancement + [Developing an environment in which a diverse range of human resources can consistently thrive] • Continuation of initiatives to reduce total working hours • Improvements to work systems to help employees strike a balance between work and private • Continuation of awareness raising activities to promote DE&I [Strengthening the talent pipeline] • Create and update individual development plans for candidate next-generation managers • Encouraging the promotion of internal and external female human resources to key positions • Introducing an external mentoring system • Setting the percentage of managerial positions filled by women as a KPI To achieve sustainable growth for the Group, we will secure the human resources needed for each business portfolio, while shifting human resources who have honed their skills in existing businesses and embraced the Group's DNA to assignments where they can lead future areas of focus We view the participation and advancement of women as one of the key pillars of management strategy. We are committed to continually developing an environment in which a diverse range of human resources can consistently thrive, while further enhancing a talent pipeline (*) aimed at cultivating female employees who will be involved in management and business decision making Enhance initiatives Continuation of relevant actions Human resource portfolio designed to achieve our business strategies New market growth strategy Strengthening existing businesses Developing new products and technologies Exploration of new businesses and M&A opportunities Pioneering human resources (overseas, etc.) Shifting of human resources + external acquisition Encourage human resources thriving in existing businesses to pursue even greater success in new fields, while also actively recruiting external human resources Human resources taking on the challenge of new business areas Cooperation between external human resources and core human resources Secure human resources by hiring experienced personnel, collaborating with startups and acquiring personnel through acquisitions, while also encouraging collaboration with core human resources Core human resources Enhancement By strengthening recruitment and development, secure human resources who can embody reliability and encourage sustainable corporate growth Innovative human resources (R&D, etc.) Shifting of human resources + external acquisition Encourage human resources thriving in existing businesses to pursue even greater success in new fields, while also actively recruiting external human resources New markets Existing markets Existing products New products (*) A mechanism designed to prepare a pool of candidate human resources, ensuring that certain human resources are consistently retained
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44 4)-2. Progress on Medium-to-long-term Targets for Environmental Issues Medium-to-long-term targets for environmental issues and our progress Action Theme Targets Action on climate change Reduce the CO2 emissions generated by Group-operated sites by 50% by 2030 (compared with fiscal 2014 levels) Reduce the CO2 emissions generated by Group-operated sites to effectively zero to achieve carbon neutrality by 2050 Reduce CO2 emissions in the supply chain Addressing food waste Reduce food waste by at least 50% (compared with fiscal 2017 levels; compared with fiscal 2020 levels for the three prepared foods companies) from raw material procurement to delivery to customers by 2030 * Applies to domestic Group companies Addressing container and packaging waste Reduce the usage of fossil fuel-derived plastics by at least 25% (compared with fiscal 2020 levels) by 2030 * Applies to domestic Group companies Addressing water resources Reduce water usage at plants as a unit of production by 30% by 2040(compared with fiscal 2022 levels) Upper figures: FY2024 Results Lower figures: FY2025 Estimates [vs. the base year] 13% reduction 24% reduction * Including Oriental Yeast India Pvt. Ltd. 60% reduction 66% reduction 10% reduction 13% reduction 3% reduction 3% reduction * Excluding the Group portion of Kumamoto Flour Milling. From FY2026, performance management that includes the portion from Kumamoto Flour Milling will be carried out
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45 Appendix
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1. Fiscal 2025 Results Net sales decreased, primarily due to wheat flour price revisions associated changes to wheat prices in the domestic flour milling business, as well as the impact of falling wheat market prices in the overseas flour milling business Operating profit decreased, reflecting ongoing cost increases for raw materials, transportation and labor in each business along with reduced shipments of bulk pharmaceuticals, despite strong results in the overseas flour milling business, prepared dishes and other prepared foods businesses, and the engineering business. Profit attributable to owners of parent increased, reflecting gains on the sale of investment securities amid efforts to reduce cross-shareholdings, more than offsetting the business restructuring costs recorded due to discontinuing business activities at Nisshin Pharma Inc. Net sales: YoY changes (0.8%) Operating profit: YoY change (3.0%) Ordinary profit: YoY change (1.6%) Profit attributable to owners of the parent: YoY changes +9.3% 7,987 8,582 8,515 0 2,000 4,000 6,000 8,000 10,000 '23.3 '24.3 '25.3 (100 millions of yen) Net sales 328 478 464 0 100 200 300 400 500 600 '23.3 '24.3 '25.3 (100 millions of yen) Operating profit (104) 317 347 (200) (100) 0 100 200 300 400 500 '23.3 '24.3 '25.3 (100 millions of yen) Profit attributable to owners of parent 331 500 492 0 100 200 300 400 500 600 '23.3 '24.3 '25.3 (100 millions of yen) Ordinary profit * Figures rounded to the nearest 100 million yen. 46
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2. Analysis of Segment Results (1) Analysis of Net Sales (YoY Difference) Domestic wheat flour shipments (up 1% year on year) +2.8 Flour price revisions accompanying revised wheat prices, others (10.4) Bran prices +0.0 Overseas sales (7.0) Flour Milling ¥ (14.6) billion Processed food sales Household-use flour sales Prepared mix product sales Pasta-related sales Frozen food sales Overseas processed food sales Others +3.5 +0.1 +0.6 +1.8 +0.4 +1.4 (0.8) Oriental Yeast sales +3.9 Nisshin Pharma sales (2.2) Processed Food ¥+5.2 billion NBC Meshtec sales +0.2 Facility construction sales, others (Nisshin Engineering, others) +0.0 Others ¥+2.5 billion [Ref.] Overseas sales * Line graph indicates overseas sales ratio 1,556 1,859 2,617 2,682 2,622 22.9 27.3 32.8 31.3 30.8 0 10 20 30 40 0 1,000 2,000 3,000 4,000 '21.3 '22.3 '23.3 '24.3 '25.3 (100 millions of yen) （％） Prepared Dishes and Other Prepared Foods Prepared dishes and other prepared foods sales +2.5 ¥+0.2 billion (billions of yen) 47
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2. Analysis of Segment Results (2) Flour Milling ¥(0.5) billion Shipment volume +0.4 Sales expansion costs (0.4) Cost related and others (1.7) Overseas operating profit (incl. Oriental Yeast, Nisshin Pharma exports) (0.3) Processed Food ¥(2.0) billion Sales +0.3 Cost related and others +0.5 Others ¥+0.8 billion ¥+0.4 billion (billions of yen) Prepared Dishes and Other Prepared Foods Sales +0.6 Cost related and others (0.2) [Ref.] Overseas operating profit * Line graph indicates overseas operating profit ratio 30 39 98 155 171 10.9 13.2 29.8 32.5 36.9 0 10 20 30 40 0 50 100 150 200 '21.3 '22.3 '23.3 '24.3 '25.3 (100 millions of yen) (%) 48 Analysis of Operating Profit (YoY Difference) Domestic wheat flour shipment volume +0.5 Sales expansion costs (0.4) Bran prices +0.0 Cost related and others (2.7) Overseas operating profit +2.1
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3. Non-operating Income (Expenses) / Extraordinary Income (Losses) (Results) Fiscal 2024 Results Fiscal 2025 Results YoY difference Comments [Non-operating Income (Expenses)] Net financial income (5) 5 +10 Share of profit (loss) of entities accounted for using equity method 18 16 (2) Others 9 7 (2) Total non-operating income (expenses) 22 28 +6 [Extraordinary Income (Losses)] Gain on sale of investment securities 4 74 +70 Difference in the sale of cross-shareholdings Impairment losses (13) (1) +12 (Fiscal 2024) Closure of plants in the yeast and biotechnology business Business restructuring expenses — (23) (23) (Current year) Decision to discontinue the Fine Chemicals Business Others (3) (10) (6) Total extraordinary income (losses) (11) 41 +52 * Figures rounded to the nearest 100 million yen. (100 millions of yen) 49
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4. Statements of Cash Flows (Results) Fiscal 2024 Results Fiscal 2025 YoY differenceResults Highlights Cash and cash equivalents at beginning of period 830 1,077 +247 Cash on hand* 1,095 Cash flows from operating activities 732 552 Profit before income taxes: +533, depreciation: +238, increase in working capital: (66), income taxes paid: (95) (180) Cash flows from investing activities (309) (350) Capital expenditures (payment basis) (415) Proceeds from sale of investment securities +90 (40) Cash flows from financing activities (195) (354) Cash dividends paid (146) Acquisition of treasury shares (141) (159) Effect of exchange rate changes on cash and cash equivalents 20 (5) (25) Net increase (decrease) in cash and cash equivalents due to changes in the accounting period of consolidated subsidiaries — 0 +0 Cash and cash equivalents at end of period 1,077 920 (157) Cash on hand* 961 (100 millions of yen) * Figures rounded to the nearest 100 million yen. Fiscal 2024 Results Fiscal 2025 Results YoY difference Highlights Capital expenditures (construction basis) 310 416 +107 Establishment of the Mizushima plant Depreciation and amortization 230 238 +8 * Cash on hand includes deposits exceeding 3 months and operating bonds 50
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5. Fiscal 2026 Forecasts (1) Net Sales by Segment Forecasts YoY difference Flour Milling 4,340 (96) Processed Food 2,170 +107 Prepared Dishes and Other Prepared Foods 1,640 +79 Others 550 +94 Total 8,700 +185 (100 millions of yen) Domestic wheat flour shipments (down 1 % year on year) (1.1) Flour price revisions accompanying revised wheat prices, others (4.0) Bran prices +0 Overseas sales (4.5) (billions of yen) Flour Milling ¥(9.6) billion Domestic processed food sales +4.9 Overseas processed food sales +2.4 Oriental Yeast sales +3.4 Nisshin Pharma sales + 0.0 Processed Food ¥+10.7 billion NBC Meshtec sales +1.2 Facility construction sales, others (Nisshin Engineering, others) +8.2 Others ¥+9.4 billion Prepared Dishes and Other Prepared Foods ¥+7.9 billion Prepared dishes and other prepared foods sales +7.9 51
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5. Fiscal 2026 Forecasts (2) Operating Profit by Segment Forecasts YoY difference YoY difference*2 (corrected) Flour Milling 292 +11 (2) Processed Food 80 +16 +25 Prepared Dishes and Other Prepared Foods 60 +2 +4 Others 68 +5 +6 Adjustments*1 0 +2 +2 Total 500 +36 +36 (100 millions of yen) Domestic wheat flour shipment volume (0.2) Sales expansion costs (0.2) Bran prices +0.0 Cost related and others (1.4) Overseas operating profit +1.6 (billions of yen) Flour Milling ¥ (0.2) billion Shipment volume +0.5 Sales expansion costs +0.2 Cost related and others +1.2 Overseas operating profit (incl. Oriental Yeast, Nisshin Pharma exports) +0.6 Processed Food +¥2.5 billion Sales +1.7 Cost related and others (1.1) Others + ¥0.6 billion Prepared Dishes and Other Prepared Foods Sales +0.8 Cost related and others (0.4) ¥+0.4 billion *1 Includes elimination of intersegment transactions, among other adjustments *2 From FY2026, the criteria for allocating company-wide expenses will be changed, and the year-on-year difference has been adjusted to reflect these changes. The impact of these changes has been removed from the year-on-year analysis. 52
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53 Caution Regarding Results Briefing Content The content of this briefing is based on various assumptions, and thus does not represent any promise or guarantee that numerical targets and initiatives projected for the future will be realized.