Slides
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First Six Months of Fiscal 2026 Results Briefing October 31, 2025 Nisshin Seifun Group Inc.
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Contents 2 I. First Six Months of Fiscal 2026 and Fiscal 2026 Forecasts II. Corporate Value Enhancement Initiatives Appendix
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Progress on initiatives for recovery of performance －Steady progress despite delay in recovery－ 3 Main Points of Today's Meeting Initiatives to improve capital efficiency ➢ ➢ ➢ In 1H of FY2026, profit decreased and we failed to achieve the forecasts. This was mainly attributable to the overseas flour milling business, the processed food business and the mesh cloth business. In the overseas flour milling business, we will seek to turn the situation around in 2H through increased sales and cost reductions. The processed food business has been slow to recover but hit bottom in 1H. The mesh cloth business will also start to recover from 2H. Although market growth can still be expected going forward, we revised our business plan and recognized impairment losses on the assumption of tough competition in the short term. We will aim for business growth over a medium-to-long-term timeframe We will implement share buybacks of up to ¥20 billion, for further improvements in capital efficiency. Going forward, we will continue taking a flexible approach toward share buybacks, taking our financial position into consideration. Additionally, we plan to increase dividends as announced at the beginning of the fiscal year ◎ ◎ During this 1H, we have been taking steps to address our inadequate response to higher costs that were the main cause of decreased profit in FY2025 and the profit decline and stagnation of bulk pharmaceuticals in the healthcare foods business. We can expect to see the effects of these measures going forward. ➢ Although we forecast declines on a full-year basis due to the delayed recovery of the overseas flour milling business, processed food business and mesh cloth business, we are aiming for a significant profit increase in 2H due to the effects of measures. ➢ Recognition of impairment losses in the India yeast business◎ We will use up the cash generated over the course of the Medium-Term Management Plan on investment and shareholder returns ➢
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4 I. First Six Months of Fiscal 2026 and Fiscal 2026 Forecasts
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5 1. First Six Months of Fiscal 2026 Results Net sales increased due to growth in large-scale construction work in the engineering business and steady sales in businesses such as the yeast and biotechnology business and prepared dishes and other prepared foods businesses, despite the impact of falling wheat market prices and the impact from foreign currency translation in the overseas flour milling business. Operating profit decreased, reflecting lower profits due to costs associated with the start of operations at the Mizushima Plant in the domestic flour milling business and decreased shipments and the impact from foreign currency translation in the overseas flour milling business, as well as the impact of higher costs in the processed food business and decreased shipments in the mesh cloth business. Profit attributable to owners of parent decreased due to the posting of impairment losses in the India yeast business, despite progress with the reduction of cross-shareholdings. Fiscal 2026 First Six Months of Fiscal 2026 Results Fiscal 2025 Results Forecasts (May Release) Change Change Net sales 4,313 4,295 +0.4% 4,350 (0.8%) Overseas sales ratio 28.2% 32.0% – – – Operating profit 226 260 (13.0%) 240 (5.7%) Ordinary profit 248 271 (8.5%) 260 (4.7%) Profit attributable to owners of parent 103 204 (49.3%) 190 (45.7%) * Figures rounded to the nearest 100 million yen. (100 millions of yen)
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6 2. First Six Months of Fiscal 2026 Results (By Segment) Fiscal 2025 Results First Six Months of Fiscal 2026 Results YoY difference YoY change Forecasts difference (May Release) Forecasts change (May Release) Net sales [Overseas sales] 4,295 [1,372] 4,313 [1,216] +18 [(156)] +0.4% [(11.4%)] (37) – (0.8%) – Flour Milling 2,287 2,117 [171] (7.5%) – – Processed Food 1,019 1,085 +66 +6.5% – – Prepared Dishes and Other Prepared Foods 785 843 +58 +7.3% – – Others 203 268 +65 +32.1% – – Operating profit [Overseas operating profit] 260 [94] 226 [70] (34) [(24)] (13.0%) [(25.2%)] (14) – (5.7%) – Flour Milling [following adjustments to the previous year's results] * 155 [161] 131 (23) [(30)] (15.1%) [(18.5%)] – – Processed Food [following adjustments to the previous year's results] * 39 [35] 37 (2) [+2] (6.1%) [+6.1%] – – Prepared Dishes and Other Prepared Foods [following adjustments to the previous year's results] * 34 [33] 34 +0 [+2] +0.5% [+4.6%] – – Others [following adjustments to the previous year's results] * 32 [32] 26 (6) [(6)] (20.0%) [(18.7%)] – – Adjustments (Intersegment eliminations, etc.) (0) (2) (2) – – – Ordinary profit 271 248 (23) (8.5%) (12) (4.7%) Profit attributable to owners of parent 204 103 (100) (49.3%) (87) (45.7%) (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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200 Domestic wheat flour shipment volume Sales expansion costs Bran prices Cost related (Depreciation) (Other) Overseas operating profit Shipment volume Sales expansion costs Cost related and others Overseas operating profit Prepared Dishes and Other Prepared Foods Segment 7 3. First Six Months of Fiscal 2026 Operating Profit (Analysis vs. Fiscal 2025 Analysis of Change in Operating Profit (vs. FY2025) : Increase in profit : Decrease in profit First Six Months of Fiscal 2025 Results Flour Milling Segment ¥(3.0) billion Processed Food Segment ¥+0.2 billion Others Segment, etc. ¥26.0 billion ¥22.6 billion (¥(3.4) billion YoY) : Increase in profit due to steady inbound demand and the effects of sales expansion, etc. : Profit decreased due to use of shipment subsidies even though prices were left unchanged : Although profit decreased due to the increased burden of depreciation as a result of the start of operations at the Mizushima Plant in May 2025, the drop in profit was smaller due to the effects of product price revisions, etc. : Profit decreased mainly due to struggling shipments in the Australia flour milling business and the impact of foreign currency translation : Profit increased due to steady sales in the yeast and biotechnology business, etc. : Profit decreased due to higher costs, including labor costs and logistics costs, but price revisions were implemented steadily : Profit increased due primarily to steady shipments in the prepared mixes business : Contributing factors included increased sales and improved productivity : Higher profit in the engineering business was offset by lower profit as a result of decreased shipments of screen printing metal meshes for solar panels in the mesh cloth business ¥+0.1 billion ¥(0.2) billion ¥(0.8) billion ¥(1.9) billion ¥+0.5 billion ¥(0.5) billion ¥+0.3 billion ¥+0.2 billion ¥(0.8) billion ¥(0.4) billion ¥(0.1) billion : Marketing expenses increased : Product mix changed due to increased shipments to users wanting low-priced items ¥+0.2 billion First Six Months of Fiscal 2026 Results
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8 (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: Review of the First Half In the flour milling business, the Okayama Plant and Sakaide Plant were closed in July and September respectively, as a result of the start of operations at the Mizushima Plant. In the United States, extension work on the Winchester Plant was completed in July. We are in the process of restructuring operations at Nisshin Pharma Inc. (ending the fine chemicals business, transferring the healthcare foods business elsewhere within the Group) before March 2026 In our core domestic businesses, we steadily implemented price revisions, taking into account increases in costs, including personnel expenses through our product price revisions in July and August 2025. The effects of price revisions in 1H were limited as they were implemented partway through the period; however, we expect the effects to fully materialize in 2H. In this 1H, shipments struggled due to weak consumption against a backdrop of persistent inflationary pressures. With costs also continuing to rise, performance declined significantly from a year earlier. In 2H, we will aim for a recovery in performance by implementing various measures for sales expansion prepared during 1H as well as product price revisions and cost improvement measures. As a result of careful examination of the current business situation and a review of our business plan, we decided to downwardly revise our business plan and recognized impairment losses on non-current assets during 2Q (see the next page for further details) We introduced new technologies to the Mizushima Plant (automated controllers, automated sorting robots, etc. in production processes). In the prepared dishes and other prepared foods businesses, we made progress in terms of the automation of production processes for sandwiches, etc. and various inspection processes. Additionally, we decided to build a next-generation frozen food factory (new factory) at Nomura Foods Co., Ltd. We plan to introduce cutting-edge automation technologies in the new factory. 8
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We thoroughly assessed the viability of our current business plan for the India yeast business, considering the low profit levels, and developed a new business plan. The new plan deviates significantly from the original plan. Consequently, we recognized impairment losses in 2Q of FY2026. 9 5. Impairment Losses in India Yeast Business 5.1 billion rupiahs (approximately ¥8.7 billion)• Persistently high prices for various yeast raw materials and market prices for fuel due to the Ukraine conflict and other factors • Delayed cost pass-through as a result of intensifying competition• Recent slowdown in sales of yeasts used in ethanol production (delays with measures that could not be anticipated at the beginning of the fiscal year) • We expect the business to return to profit in FY2027, partly due to a decrease in depreciation• Revision of forecasts (downward revision of full-year consolidated forecasts)• Reduction in burden of depreciation (expected depreciation of around ¥0.7 billion on a full year basis; depreciation is expected to amount to half of this (around ¥0.3 billion) in FY2026) • Annual dividend is unchanged from our initial forecast (plan to pay a dividend of ¥60 per share, which represents an increase of ¥5 from the previous year) • ■ Main factors behind impairment losses ■ Impairment losses ■ Outlook for India yeast business ■ Impact on consolidated results 9
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10 6. Fiscal 2026 Forecasts We project an increase in net sales, with 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 increases in operating profit and ordinary profit, with improvement measures such as sales expansion, price revisions and cost reductions in each business paying off in 2H, despite costs associated with the start of operations at the MizushimaPlant in the domestic flour milling business. We predict a decrease in profit attributable to owners of parent due to the recognition of impairment losses in the India yeast business, despite progress with the reduction of cross-shareholdings. We revised our initial forecasts announced on May 15, 2025 due to the slow recovery of performance in the overseas flour milling business, processed food business, and mesh cloth business, as well as the recognition of impairment losses in the India yeast business. Fiscal 2026 Forecasts (October Release) Fiscal 2025 Results Forecasts (May Release) Difference Change Difference Change Net sales 8,700 8,515 +185 +2.2% 8,700 ±0 0.0% Overseas sales ratio 29.9% 30.8% – – 30.1% – – Operating profit 470 464 +6 +1.3% 500 (30) (6.0%) Ordinary profit 500 492 +8 +1.6% 530 (30) (5.7%) Profit attributable to owners of parent 300 347 (47) (13.5%) 390 (90) (23.1%) (100 millions of yen) * Figures rounded to the nearest 100 million yen.
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11 7. Fiscal 2026 Forecasts (By Segment) Fiscal 2025 Results Fiscal 2026 Forecasts YoY difference YoY change Forecasts difference (May Release) Forecasts change (May Release) Net sales [Overseas sales] 8,515 [2,622] 8,700 [2,599] +185 [(23)] +2.2% [(0.9%)] – [(23)] – [(0.9%)] 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] 470 [173] +6 [+2] +1.3% [+1.2%] (30) [(22)] (6.0%) [(11.3%)] Flour Milling [following adjustments to the previous year's results] * 281 [294] 278 (3) [(16)] (1.1%) [(5.4%)] (14) (4.8%) Processed Food [following adjustments to the previous year's results] * 64 [55] 77 +13 [+22] +20.2% [+40.1%] (3) (3.7%) 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] 55 (8) [(7)] (12.0%) [(10.6%)] (13) (19.1%) Adjustments (Intersegment eliminations, etc.) (2) 0 +2 – – – Ordinary profit 492 500 +8 +1.6% (30) (5.7%) Profit attributable to owners of parent 347 300 (47) (13.5%) (90) (23.1%) * 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 (100 millions of yen) (Amounts of less than 100 million yen are rounded to the nearest million yen.)
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(11) (19) +2 (16) (44) (34) (5) +19 +20 +2 +36 +40 ▲ 45 ▲ 30 ▲ 15 0 15 30 45 Domestic Flour Milling Business Overseas Flour Milling Business Processed Food Segment Mesh Cloth Business Subtotal Company-wide Total : 2H Forecasts: 1H Results (100 millions of yen) In the processed food business, the effects of price revisions that were limited in 1H are expected to materialize in 2H 12 We expect performance to recover in 2H due to the effects of sales expansion and cost reduction measures implemented during 1H Profit is expected to continue falling in 2H due to increased depreciation associated with the start of operations at Mizushima Plant; however, we will continue working to narrow the profit decline 8. YoY Change in Operating Profit 1H Result and 2H Forecast by Business Operating Profit (vs. FY2025) 12 In1H,operatingprofitfell. In2H,however,wewillnarrowthelargeyear-on-yeardeclineinprofitbymaterializingtheeffectsofpricerevisionsandinstituting arangeofmeasures. After hitting bottom in 1H, performance is expected to recover due to increased sales of metal meshes (new spec products) (30) (15) +150 +30
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13 9. 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) 294 464 470 570 EPS (yen) 59 117 104 140 ROE (%) 4.0 7.0 6.3 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 ●The overseas flour milling business, which is positioned as a growth driver, has significantly increased in size during the period of this Medium- Term Management Plan; however in 1H of FY2026, the Australia flour milling business struggled to perform Given the downward revision of our FY2026 forecasts, the growth of the Group as a whole has slowed somewhat; however, we will implement measures in each business to bring about a recovery in performance from 2H and get back on the growth path ●In the mesh cloth business, we have achieved growth since FY2024; however, profit has fallen under the impact of decreased sales volume of mainstay screen printing metal meshes (Revised in October) ●In the processed food business, where we aim to achieve significant profit growth and business expansion during the period of the Medium-Term Management Plan, performance is currently lackluster
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14 II. Corporate Value Enhancement Initiatives 1) Progress of the Main Businesses Driving the Group's Growth
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Changes in Operating Profit Reforming the cost structure Initiatives Towards Generation of Profit in FY2026 and Sustainable Growth 15 1)-1. Domestic Flour Milling Business Core businesses Positioning the domestic flour milling business as a core business of the Group, we will forge a solid business foundation through constant efforts to improve the cost structure and continuous initiatives to maintain and increase the topline 78 80 147 121 118 70 90 110 130 150 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Revising wheat flour prices (from July 2025) With the understanding of customers, we are revising prices in light of rising costs including transportation and personnel expenses, in addition to fluctuations in wheat prices. → During this fiscal year, we expect to be able to make up for lost ground, including the higher costs (impact on profit) incurred the previous fiscal year. Start of operations at Mizushima Plant and closure of Okayama Plant and Sakaide Plant We are expanding sales of high value added products such as Amuleia high-fiber wheat flour Mizushima is a "smart factory" utilizing cutting edge technologies such as AI and robots, and a wide range of the plant's operations are automated (Target)(Forecast) This fiscal year, we forecast decreased profit due to the burden of depreciation (approx. ¥2.0 billion) associated with the start of operations at Mizushima Plant; however, in real terms excluding the burden of depreciation, we aim to achieve higher profit through the implementation of various measures. Maintaining and improving profit levels Completed in May 2025 , Mizushima Plant is operating smoothly. The closure of our two inland plants was also completed as planned (Okayama Plant in July and Sakaide Plant in September) The positive effects of the start of operations at Mizushima Plant will be realized in the medium term from FY2027 onwards. → We will implement initiatives for the establishment of low (cost operations including operating unmanned production lines during certain periods (such as night-time) Maintaining and increasing topline ─Developing food culture─ ・ We are further strengthening value proposal-based sales activities・ <Change in sales market share> (On weight basis) FY2004 FY2014 FY2024 ～ * Figure includes Kumamoto Flour Milling Co., Ltd. ～ ～～ Source: Nikkan Keizai Tsushin Co., Ltd., “The Beverage & Food Statistics Monthly” * From fiscal 2026, the criteria for allocating shared Company-wide expenses to each segment will be revised. * 36.9% 38.3% 40.6% 36% 39% 42% Focusing on further increasing market presence (100 millions of yen) (MTP base year) *
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● Implementation of product price revisions (appropriate price pass-through) 16 1)-2. Domestic Processed Food Business After a sharp drop in profit the previous fiscal year, we will aim for improvement in profit levels through product price revisions in line with rising prices, cost improvement measures and increased shipments of new added value products. Despite delays in restoring profitability, profit hit bottom in 1H and we will aim for an early recovery in profit levels. Action on rising costs The effects of price revisions will materialize in 2H of FY2026 → Changing previous approach and steadily implementing price revision measures Progress of FY2026 initiatives to restore profit levels ・ Review and strengthening of progress management system at head office is having positive effect ・ Through the early announcement of revisions to customers, we are explaining revisions more courteously than before and implementing schedule management ● Reduced manufacturing costs (implementation of cost reduction measures) → We are implementing initiatives aimed at fundamentally reforming production system ・Review of raw material procurement, etc. : Shift towards raw material procurement using economic partnership agreements such as CPTPP Further promotion of new product development and the introduction of high added value ● Launch of products that meet increasingly diverse and fragmented needs Economical ☞ Delivering both "taste" and "convenience" Time-saving Authentic ☞ Meeting needs for "easy" meals ● Creation of new pasta culture (expansion of fresh pasta market) × × ◆ Commercial-use products Annual target net sales: ¥7.0 billion (from new products) Meeting ready-to-eat and mouthfeel needs and expanding market Meeting needs for "tasty" and "authentic" meals ◆ Home-use products Strengthening of sales promotions ● Ma・Ma rebranding and advertising measures Rollout of measures such as commercials featuring sports star Shohei Ohtani → We have verified a definite effect on sales since the start in March 2025. We will continue actively implementing measures from 2H onward In 2H of FY2026, we will achieve a recovery in performance due to materialization of the effects of various measures 100 101 102 103 104 105 106 April May June July <YoY Changes in Net Sales of Ma・Ma Brand Products> Sales of Ma・Ma brand products have grown since rebranding (%) ・Reduction of SKUs : We have been implementing measures since 1H for achievement of our full-year target (15% reduction) Core businesses
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17 1)-3. Australia Flour Milling Business Top Priority Measure (3) Growth businesses Changes in Operating Profit 20 30 40 FY2024 FY2025 FY2026 FY2027 Amid a continued surge in inflation, record-high housing prices and persistently high unemployment since the COVID pandemic, the cost of living has increased significantly. 1H performance declined significantly from a year earlier, reflecting weak consumption. In 2H, we aim to make up for lost ground through the steady implementation of cost reduction measures in addition to the creation of demand through promotions and the effect of price increases ■ FY2026 1H Challenges and Achievements The demand situation deterioration amid surging inflation (Rising cost of living → Stagnating consumption) Personnel expenses, logistics costs and the costs of some raw materials continue to rise The new ERP introduced the previous fiscal year is operating smoothly ・ ・ Measures to Improve Performance in 2H The business environment remains challenging, but we will strive for a recovery in performance through the implementation of various measures • Strengthening initiatives with major customers (in-store bakeries, etc.) • Expansion of items under the Wise Wheat® brand, a wheat flour brand with high dietary fiber content Received 2025 Healthy Food Award. Expanding lineup and promoting further sales expansion Strengthening promotions and pursing recovery and expansion of shipments We are implementing product price revisions in response to continuing cost increases. We expect the effects to materialize in 2H. ・ Increasing the topline → Through the use of large wheat flour tankers and consolidated deliveries, efficiency has increased and logistics and other costs have improved → Productivity has improved through the transfer and consolidation of some soft wheat flour products at manufacturing plants Implementation of product price revisions We are shifting to a more efficient organizational structure through business process reengineering including further use of the new ERP Progress of structural reform plan ・ Although we have downwardly revised our full- year forecast in light of business conditions in 1H, the effects of various measures implemented in 1H are expected to materialize from 2H • Implementing product renewals (reviewing line-up and increasing items) Large tankers have been phased in since October In-store bakery product renewal initiatives ・ We are currently implementing various plans (Plan A and Plan B) to rationalize production and distribution systems ・ (100 millions of yen) (Target)(Forecast)
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18 1)-4. India Yeast Business (1) Growth businesses Top Priority Measure (4) The environment surrounding the India yeast business is very different from our assumptions at the time of entering the market. This can be attributed to various factors including the rising price of molasses, a key ingredient, due to extreme weather conditions, surging global fuel prices as a result of the Russia-Ukraine conflict, and intensifying competition with other companies. We developed a new plan that takes these changes into consideration and also reflects the progress of various measures currently being implemented to improve performance Changes in Operating Profit (Results and Forecasts) (20) 0 20 The business is expected to return to profit, partly due to a decrease in the burden of depreciation We still see the baker's yeast market in India, which has the world's largest population, as a promising market ● By steadily implementing each measures (further sales expansion of yeast products as well as product price revisions and reduction of manufacturing costs, etc.) and also putting effort into various other measures, we will drive continuous improvement in the performance of the India yeast business and increase its contribution to profit. ● <Key Business Conditions Classified in Reassessment of Business Plan> Rising price of key ingredient (molasses) and surging energy costs → Delayed cost pass-through as a result of intensifying competition Intensification of competition with other companies → Competitors are more on the defensive and increasingly launching price offensives because of the sudden increase in our market share since entering the market Growth potential of the Indian baker's yeast market → Expected to grow at a CAGR of 7% ・ ・ ・FY2025 FY2026 FY2027 FY2028 FY2029FY2024FY2023 (Result) (Forecast) (Target) (Target)(Result) (Result) (Target) (100 millions of yen)
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19 1)-4. India Yeast Business (2) Initiatives to Improve Performance and Contribute to Profit Further expansion of sales share (1) Sales expansion of yeast for bakery use ・Strengthening relationships with major bakeries ・Making approaches to southern areas and western areas → Sales volume is steadily increasing. We will continue implementing initiatives going forward to further strengthen relationships KOBO® sold in India (2) Sales expansion of yeast for ethanol Our high quality and technical support capabilities are highly rated by the market. We will leverage these strengths and continue implementing sales expansion initiatives We have a competitive edge in terms of location and technical support. We will propose products in conjunction with bread improver products, etc. Launch of new products (from July 2025) We are leveraging the technological capabilities we have developed over many years in Japan for product renewal and launching baker's yeast products that use yeast strains with even higher fermentation power We will further increase our market presence by driving the creation of added value such as productivity improvements at customers Revisions to product prices Reduced manufacturing costs We will accelerate price revision negotiations to coincide with the market launch of new products → Also making a start in regions where negotiations had been lagging behind ・ Competitors are still not following suit but we will steadily implement price revisions on the basis of the superior performance of new products ・ New products will also help improve productivity in own manufacturing operations → We expect higher profit from 2H onwards ・ Absorption of fixed costs through improved operating rates ・ Cost reduction measures in every process including yeast cultivation, packaging, and wastewater treatment (Example: review of packaging materials, etc.) ・ ・Strengthening collaboration and sales with local distributors (already signed contracts) → Speeding up user trial to quality improvement cycle and driving new development The market for yeast for ethanol is a market where continued growth can be expected in the future. We will seek to expand sales by putting in place a product supply chain that takes India's unique use environment into consideration We will achieve steady improvement in performance by implementing necessary measures according to the changing business environment Growth businesses Top Priority Measure (4) 19
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Changes in Operating Profit 20 1)-5. US Flour Milling Business 40 60 80 100 FY2022 FY2023 FY2024 FY2025 FY2026 Enhancement of Production Capabilities Winchester Plant (Virginia) We will consider and make further growth investments for expansion of our business base ITC (integrated within the Saginaw Plant) While shipments declined year on year, we continued to secure high sales margins based on a policy of focusing on profit ■ FY2026 1H Challenges and Achievements Profit levels have improved significantly ・ ・ The US market is also experiencing inflation, but we will seek to maintain and expand shipments and our profit base by strengthening our supply chain and tapping into the new demand that arises from this Los Angeles Plant (California) Production line expansion (November 2023) Production capacity: +150 tons/day Investment amount: Approx. ¥1.4 billion For reference: Production line was expanded at the Chilliwack Plant (close to Vancouver) in Canada (June 2023) Expansion work was completed at the end of July 2025 (Modification of existing production line) ・ Shipments to meet new demand started straight after the start of operations (from August) ・ Initiatives to Increase Market Presence New sales contracts concluded in 2H are also going well ・ ・ Use of Innovation & Technical Center (ITC) ✓ Early analysis of the grade of wheat raw materials → Ensuring and procurement of high quality raw materials ✓ Enhancement of ability to support customers in solving problems Saginaw Plant (Texas) Production line expansion (March 2025) Production capacity: +600 tons/day Investment amount: Approx. ¥6.0 billion Investment amount: Approx. ¥1.4 billion・ Following on from the new production line extension work at the Saginaw Plant in Texas in the South, the extension work in Virginia in the East has also been completed. We are also making good progress acquiring new customers in accordance with the investment plan. Partly thanks to improvement in the mix of shipments, we are maintaining high sales margins Growth businesses (Forecast)(MTP base year) (100 millions of yen)
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21 1)-6. Overseas Processed Food Business In the overseas businesses operated entirely locally, which represent growth drivers, we continued steadily implementing measures in 1H of FY2026. We will accelerate the rollout of products overseas, and strengthen initiatives for further market development and business growth ✓ Also on the commercial use side, production line expansion work at a prepared mixes plant aimed at strengthening the supply chain is progressing smoothly ✓ Since full-scale entry in September 2024, products have already been introduced to around 3,000 stores, primarily local mass merchandisers ✓ Sales are steady, partly due to digital advertising ✓ We are planning to launch new products (from November 2025) We are expanding our product lineup to 22 items including frozen pasta and prepared mixes Development of markets in Europe Implementing measures for business growth ✓ We began selling quick boil spaghetti in Europe (from September 2025) ✓ We will continue to expand sales in Europe and also plan to start selling quick boil spaghetti in Vietnam (from November 2025) ✓ We will leverage our production lines in Turkey to expand our sales area HAYAYUDE global strategy ✓ We exhibited at Anuga 2025, one of Europe's biggest food trade fairs (Held in Cologne, Germany, in October 2025) ✓ In view of the growth of Japanese restaurants, we appealed to overseas customers with an extensive product lineup, including tempura flour as well as dried noodles and pasta (quick boil) Seeking expansion in European market Vietnam B-to-C business Growth businesses 21
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5% 11% 20% 24% 0% 10% 20% 30% Trends in person-hour productivity (Tokatsu Foods Co., Ltd.) 2.3% 2.2% 3.5% 3.7% 3.7% 10 30 50 70 2% 3% 4% FY2022 FY2023 FY2024 FY2026 FY2027FY2025 (100 millions of yen) Progress of FY2026 Initiatives for Business Growth Enhancing frozen prepared foods Speed up automation and labor-saving measures [Top priority measure (5)] 22 1)-7. Prepared Dishes and Other Prepared Foods Businesses We have steadily increased the topline and strengthened the business foundations. We are also implementing initiatives for further business growth Changes in Operating Profit (100 millions of yen) ’21年度 ’22年度 ’23年度 ’24年度 By applying Tokatsu's management approach to other business companies, we will further strengthen the business foundations across the entire Group We will aim for further business growth in the frozen foods business by developing new markets 31 33 54 58 60 Operating profit Operating profit margin (%) 1H performance was solid, reflecting sales area expansion through the acquisition of new trade areas and increased proposal activities aimed at increased sales Changes in Net Sales ’25年度 ’26年度 We will further scale up sales through efforts to strengthen product proposal capabilities （予想） （目標） 1,640 1,5611,536 1,475 1,384 FY2022 FY2023 FY2024 FY2025 FY2026 1H * Progress with fiscal 2022 as the base year We are seeking to speed up automation and labor-saving measures by focusing on themes that are highly feasible. ・ At Tokatsu Foods, the business foundations were further strengthened and productivity is also steadily improving through the promotion of DX highlighted in Tokatsu Foods DX Report 2024. ・ ◆ Construction of New Frozen Food Factory at Nomura Foods Co., Ltd. Total construction cost: Approx. ¥8.0 billion Production capacity: 18 million meals per year Production items: Frozen foods (New Year’s dishes, Japanese-style prepared dishes) Start of construction: Around December 2025 Start of operations: Around June 2027 Combining manufacturing knowhow built up over many years and advanced automation and labor-saving technologies → Environmentally conscious "Next-generation frozen food factory" <Also taking on new product development challenges> × Rice cooking technology that enables flavor to be maintained even after thawing them in a refrigerator (patent pending) Knowhow and brand power built up in frozen prepared foods (including New Year’s dishes) business [Frozen bento (example)] Frozen bentos showcased at Osaka Kansai Expo * From fiscal 2026, the criteria for allocating shared Company-wide expenses to each segment will be revised. * Growth businesses (Forecast)(MTP base year) (Target) FY2025FY2022 FY2023 FY2024 FY2026 FY2027 (Forecast) (Target)
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0 2 4 6 8 10 12 14 23 1)-8. Mesh Cloth Business Operating Profit (vs. FY2025) Foreca st As in the previous fiscal year, during 1H of FY2026, shipments of screen printing metal meshes, which are one of our core products, declined sharply due to spec changes to solar panels and inventory adjustments caused by excess production Forecast Monthly Production of Ultra-High-Definition Metal Meshes (New Products) in FY2026 We have begun shipments of new spec metal meshes for solar panels. While inventory adjustments for the old products are ongoing, demand for the new spec products is increasing ・ We will get the business back on the growth track through recovery of metal mesh shipments We will get the business back on the growth track through recovery of shipments of new spec screen printing metal mesh products for solar panels from 2H of FY2026 onwards In light of 1H results, we are significantly lowering our full-year forecast; however, we believe that performance hit bottom in 1H and, in 2H, we will seek to expand sales of new spec products and achieve a recovery in performance ・ ・ ・ We aim to build a system for increased production of the new products. We will seek further expansion in our market share ✓ Improvement of production technological capabilities through investment in production line expansion ✓ Improvement in production capabilities through development of human resources Global demand for solar panels is expanding, and the market is expected to continue growing in the future ・ New spec products Tungsten 9 μ660 mesh Result Forecast -20 -10 0 10 After performance hit bottom in 1H of FY2026, we will strive for recovery from 2H 1H FY2025 2H FY2025 1H FY2026 2H FY2026 vs. FY2024 vs. FY2025 Significant increase in production from 2H onwards (Times) Actual production and expected increase in production (Base month) (100 millions of yen)
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24 1)-9. Engineering Business Plant equipment for EVs, electronic components, food production and so on Collaboration with the Mesh Cloth Business Engineering Business We will implement initiatives aimed at demonstrating synergies through the advanced technological capabilities of both businesses We will seek to improve customer value by strengthening our powder technology and plant construction technology and implementing DX engineering, and we will further increase the stability of profit margins and profitability Progress of Performance in 1H of FY2026 In 1H of FY2026, the engineering business turned in a strong performance, much better than a year earlier, reflecting a strong performance in the food sector where orders for large projects increased. In 2H, we will pressing ahead with projects, aiming for steady growth in performance on a full year basis Net sales in 1H of FY2026 were 195% of level a year earlier Sales from food plant construction projects increased sharply due to rising construction costs in addition to a shift towards larger projects for the upgrading or consolidation of production sites or the improvement of productivity ・ Besides plant construction, sales of powder equipment such as classifiers and pulverizers were also steady ・ We will aim to build a management foundation that will enable sustainable growth We will work to thoroughly digitize all business processes to promote (1) improvement of proposal and consulting capabilities, (2) improvement of efficiency and productivity in existing operations, and (3) increased use of knowhow and the transfer of skills Differentiation from competitors <Promotion of DX Engineering> ◎ Pulverizer Classifier Mesh Cloth Business ■ Joint participation in trade show We participated jointly in one of Japan's largest trade fairs held every year Joint participation in POWTEX®2025 Osaka (October 2025) We showcased products and technologies leveraging the powder technologies and mesh technologies built up by both businesses over many years ・ ・
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25 II. Corporate Value Enhancement Initiatives 2) Further Enhancement to Capital Policies (Progress)
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26 2)-1. Capital Policies (Cash Flow) (Inflows) (Outflows) Growth investment Maintenance and renewal investments ¥202.0 billion Enhancing corporate value Shareholder returns ¥108.0 billion Asset sales Interest-bearing financing, etc. ¥50.0 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 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 • We announced treasury share acquisitions totaling ¥20.0 billion in October 2025 to accelerate shareholder returns Amount Invested FY2023‒1H FY2026 (Result) 2H FY2026‒FY2027 (Forecast) ¥128.6 billion ¥73.7 billion • Cash generated over the course of the Medium-Term Management Plan will be actively utilized for growth investments and similar endeavors • We will also consider leveraging our funding capacity to make use of interest-bearing debt for any further investments made ◎ 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 conditionsReduction of cross- shareholdings • We will seek a reduction of ¥40.0 billion or more over the five-year period from FY2025 to FY2029 • We made a reduction of ¥5.2 billion in 1H of FY2026 Cash flow plan during the period of the five-year Medium-Term Management Plan (FY2023‒FY2027)
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27 2)-2. Capital Policies (Shareholder Return) 78 86 95 101 110 116 119 134 161 171 100 139 200 50 80 110 140 170 200 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Total dividends Acquisition of treasury shares * Trend in Shareholder Returns Dividend payout ratio (excluding extraordinary profits and losses from FY2025 onwards) 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, which represents an increased dividend for a thirteenth consecutive year in effect ➢ Looking ahead, we will evaluate further shareholder returns while taking into account financial conditions and other factors ➢ 45.1%42.7% 57.9% 66.2% 51.1%‒ 42.2% 51.1%40.6% Dividend per share ¥29 ¥32 ¥34 ¥37 ¥39 ¥40 ¥45 ¥55 ¥60 (Plan) Treasury share acquisitions announced on October 30, 2025 Shares acquired: 15 million shares (upper limit) * 5.18% of total number of shares issued and outstanding (excluding treasury shares) Acquisition value: ¥20.0 billion (upper limit) Acquisition period: November 5, 2025 to June 23, 2026 Acquisition method: Market purchase via a trust method ➢ ¥26 40.3% We announced treasury share acquisitions worth ¥20.0 billion aimed at enhancing shareholder returns and capital efficiency and carrying out capital policy measures in light of the management environment. In addition to increasing dividends, we have made treasury share acquisitions for two consecutive fiscal years * This is the acquisition value upper limit. We expect that some acquisitions will be made in FY2027 (100 millions of yen) 27
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ROIC (consolidated) Result/Forecast Trends in ROE 28 2)-3. Promoting Capital-Efficient Management 6.9% 7.0% 6.3% 8.0% (Target for the final year of the Medium-Term Management Plan) 4% (3%) 8% <ROE Improvement Measures> ➢ Through ROIC management by business, we will implement initiatives for increasing capital profitability on an individual business basis and on a consolidated basis ➢ We will actively pursue shareholder return measures while also making use of interest- bearing debt by leveraging our funding capacity Further improvement 10% FY2023 FY2024FY2022 FY2027FY2026FY2025 FY2024 (Result) 6.2% FY2025 (Result) 5.7% FY2026 (Forecast) 5.9% FY2027 (Target) 7% <Status of ROIC Management Initiatives> ➢ We sought to further instill a capital efficiency improvement mindset and enhanced communication with every level in every business ➢ In order of priority, we estimated ROIC by product group for certain businesses and initiated discussions for the appropriate allocation of management resources. Going forward, we will consider ROIC in these businesses in greater depth and expand the scope of efforts to improve ROIC to other businesses. ➢ As a Group, we will actively reduce cross-shareholdings with reduced rationale for holding. (MTP base year) (Forecast)
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29 2)-4. Capital Policies (Investment) 1H Results Full-year Plan Highlights Flour milling segment ¥12.8 billion ¥23.8 billion ➢ Flour milling Construction of the new Mizushima Plant (Began operation in May 2025) Addition of a silo for wheat raw materials at the Tsurumi Plant ➢ Processed food Addition of another production line to the Vietnam prepared mixes plant ➢ Prepared dishes and other prepared foods Construction of new frozen food factory at Nomura Foods ➢ Other Restructuring offices in the area close to the head office Processed food segment ¥3.5 billion ¥8.4 billion Prepared dishes and other prepared foods segment ¥3.7 billion ¥8.0 billion Other* ¥4.3 billion ¥7.8 billion Groupwide ¥24.3 billion ¥48.0 billion 301 301 441 480 500 100 200 300 400 500 Including M&A projects [acquisition of Kumamoto Flour Milling Co., Ltd.] FY2023 (MTP first year) FY2024 FY2025 FY2026 (Forecast) FY2027 (Forecast) FY2026 Investment Amounts (Results and Plan) Trend in growth investment, maintenance and renewal investments We will boost our presence in each business and proceed with investments aimed at capturing the market * Other segments + Group head office + intercompany eliminations Cash flows from operating activities and cash obtained from asset sales and other sources will be actively used in investments for sustainable growth. In 1H of FY2026, we resolved to build a new factory (around ¥8.0 billion) that combines advanced automation and labor-saving technologies in the prepared dishes and other prepared foods businesses, and plan to start construction in 2H (100 millions of yen)
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30 2)-5. Reducing Cross-Shareholdings We are in the process of reducing cross-shareholdings in line with the Group's cross-shareholdings reduction policy. We will continue steadily making reductions in order to achieve our target. Cross-shareholdings Reduction Amounts and Targets FY2023‒FY2024 (MTP first year) FY2025 FY2026 (Forecast) FY2027‒FY2029 FY2023‒FY2029 Total ¥30.8 billion ¥9.0 billion ¥10.0 billion or more Around ¥24.0 billion ¥70.0 billion or more The Group's Cross-Shareholdings Reduction Policy 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 FY2026, we are continuing to make steady reductions in line with our target (reduction of ¥5.2 billion in 1H of FY2026) We will verify the appropriateness of cross-shareholdings on an ongoing basis and actively make reductions when there is deemed to be no rationale for holding Cash gained from the reduction of cross-shareholdings will be used for growth investments and similar endeavors (*) Calculated using the stock price as of September 30, 2025. (*) → While we will achieve our target of a ¥40.0 billion reduction over five years as a top priority, we will discuss further reduction internally ・ ・ ・ (*) 30
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31 II. Corporate Value Enhancement Initiatives 3) ESG Initiatives
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3)-1. Human Resource Strategy 32 We will implement the initiatives below to develop the human resources and organization that will support sustainable growth. (1) Strengthen recruitment Qualitative and quantitative reinforcement of personnel (2) Strengthen development capabilities Further cultivation of human resources who will drive the company's growth (3) Strengthen HR utilization capabilities Increased utilization of human resources from a Group-wide perspective (4) Work style reforms Enhanced productivity and promotion of DE&I Recruitment by Nisshin Seifun Group Inc. for Group companies, recruitment by job type Enhance recruitment branding Onboarding measures Strengthen measures to develop prospective executives Strengthen measures to promote digital transformation and develop global human resources Provide more opportunities for proactive, continuous learning Reform business processes and eliminate long working hours Use engagement survey to make organizational improvements Develop an environment in which a diverse range of human resources can consistently thrive Promote exchanges between Group human resources Establish requirements for individual positions Use talent management system Improve personnel capabilities Secure human resources and shift human resources to help advance our core businesses in greater depth and develop new/growth areas Improve organizational capabilities Foster the development of a resilient organizational culture that makes use of diverse experiences and values to flexibly adapt to challenges and transformation (5) Review personnel wage systems Attractive system that supports human resource utilization Wage system that helps secure and retain human resources Employment system for securing diverse human resources A ranking and evaluation system that rewards roles and achievements Measures to Achieve the Human Resource Strategy
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33 3)-2. Progress on Medium-to-long-term Targets for Environmental Issues (1) 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) FY2025 Results [vs. the base year] 24% reduction * Including Oriental Yeast India Pvt. Ltd. 66% reduction 14% reduction 3% reduction * Excluding the Group portion of Kumamoto Flour Milling. From FY2026, performance management that includes the portion from Kumamoto Flour Milling is being carried out
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34 3)-2. Progress on Medium-to-long-term Targets for Environmental Issues(2) Main initiatives for reducing CO2 emissions Flour Milling Business We installed solar panels at Mizushima Plant, which started operations in May 2025. The plant will effectively source 100% of its electricity from renewable energy by using non- fossil fuel certificates February 2023 November 2023 May 2025 Fukuoka Plant Tsurumi Plant Mizushima Plant Commencement of onsite PPA Commencement of off-site PPA Commencement of onsite PPA ■ Introduction of solar power generating equipment in the flour milling business Mizushima Plant of Nisshin Flour Milling Inc. (Began operations in May 2025) Mesh Cloth Business NBC Meshtec Inc.'s Thai subsidiary (NBC Meshtec (Thailand) Co., Ltd.) has transitioned to 100% renewable energy usage through the use of International Renewable Energy Certificates (I-REC) A reduction of appropriately 300 tons of CO2 per year → Net zero NBC Meshtec Inc. has been switching to CO2 free electricity derived from renewable energy sources and has now completed introduction of CO2 free electricity at all domestic sites, with its head office (Hino, Tokyo) joining Yamanashi Tsuru Factory and Shizuoka Kikugawa Factory in this initiative. In addition, NBC Meshtec Inc. is also actively implementing initiatives to reduce CO2 at its overseas subsidiaries. A reduction of approximately 8.5 thousand tons of CO2 per year across the NBC Group (equivalent to 70% of CO2 emissions in FY2014) ・ ・ ・
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35 Main initiatives for reducing CO2 emissions (Cont'd) ’24年度実績 （基準年度対比） Processed Food Business Reduction of food waste and reduction of the consumption of fossil fuels-based resources Processed Food Business ~ "Pasta De Mirai" upcycling project ~ Project that uses waste pasta produced during the manufacturing changeover and sorting processes and pasta with packaging that gets damaged during transportation, etc. and that discovers new possibilities in pasta that would otherwise become food loss We aim not only to recycle waste in feed, etc. but also to upcycle waste into products with added value Our first project "Pasta De Pura" In collaboration with Marubeni Forest LinX Co., Ltd. and KOBAYASHI & CO., LTD.,we developed "Pasta De Pura," a plastic material made from pasta that would otherwise become food loss Prototype examples Hangers Cutlery Cone ~ Trialing of "modal combination"*1 transportation in joint deliveries in the Hokkaido area ~ From September 2025, six domestic food manufacturers*2 and logistics company F-Line trialed transportation combining rail and truck, to address the truck driver shortage issue and reduce environmental impacts Switching from full-truck transportation to part-rail transportation is expected to reduce CO2 emissions from transportation on the major route in question (between Sapporo and Obihiro) by around 43% Collaboration with other companies to realize sustainable logistics systems *1: Method of optimizing transportation by combining multiple transport forms such as trucks, rail and ships *2: Nisshin Seifun Welna Inc., Ajinomoto Co., Inc., KAGOME CO., Ltd., The Nisshin OilliO Group, Ltd., House Foods Group, Inc., Mizkan Co., Ltd. 3)-2. Progress on Medium-to-long-term Targets for Environmental Issues(3) 35
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36 Appendix
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1. First Six Months of Fiscal 2026 Results Net sales increased due to growth in large-scale construction work in the engineering business and steady sales in businesses such as the yeast and biotechnology business and prepared dishes and other prepared foods businesses, despite the impact of falling wheat market prices and the impact from foreign currency translation in the overseas flour milling business. Operating profit decreased, reflecting lower profits due to costs associated with the start of operations at the Mizushima Plant in the domestic flour milling business and decreased shipments and the impact from foreign currency translation in the overseas flour milling business, as well as the impact of higher costs in the processed food business and decreased shipments in the mesh cloth business. Profit attributable to owners of parent decreased due to the posting of impairment losses in the India yeast business, despite progress with the reduction of cross- shareholdings. Net sales: YoY change +0.4% Operating profit: YoY change (13.0%) Ordinary profit: YoY change (8.5%) Profit attributable to owners of parent: YoY change (49.3%) 4,269 4,295 4,313 0 1,000 2,000 3,000 4,000 5,000 '23.9 '24.9 '25.9 Net sales 255 260 226 0 50 100 150 200 250 300 '23.9 '24.9 '25.9 Operating profit 184 204 103 0 50 100 150 200 250 300 '23.9 '24.9 '25.9 Profit attributable to owners of parent 265 271 248 0 50 100 150 200 250 300 '23.9 '24.9 '25.9 Ordinary profit * Figures rounded to the nearest 100 million yen. 37 (100 millions of yen) (100 millions of yen) (100 millions of yen) (100 millions of yen)
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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) +0.5 Flour price revisions accompanying revised wheat prices, others (2.6) Bran prices (0.2) Overseas sales (14.8) Flour milling ¥(17.1) billion Processed food sales Household-use flour sales Prepared mix product sales Pasta-related sales Frozen food sales Overseas processed food sales Others +2.8 +0.1 +0.5 +0.6 +0.4 +0.8 +0.4 Oriental Yeast sales +3.9 Nisshin Pharma sales (0.1) Processed food ¥+6.6 billion NBC Meshtec sales (1.8) Facility construction sales, others (Nisshin Engineering, others) +8.3 Others ¥+5.8 billion [Ref.] Overseas sales * Line graph indicates overseas sales ratio 864 1,268 1,324 1,372 1,216 26.5 32.6 31.0 32.0 28.2 0.0 10.0 20.0 30.0 40.0 50.0 0 500 1,000 1,500 '21.9 '22.9 '23.9 '24.9 '25.9 (100 millions of yen) (%) Prepared Dishes and Other Prepared Foods Prepared dishes and other prepared foods sales +5.8 ¥+6.5 billion (billions of yen) 38
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2. Analysis of Segment Results (2) Analysis of Operating Profit (YoY Difference) ¥(3.0) billion Shipment volume +0.5 Sales expansion costs (0.1) Cost related and others (0.5) Overseas operating profit (incl. Oriental Yeast, Nisshin Pharma exports) +0.3 Sales +0.3 Cost related and others (0.9) ¥(0.6) billion ¥+0.2 billion (billions of yen) Sales +0.7 Cost related and others (0.5) [Ref.] Overseas operating profit *Line graph indicates overseas operating profit ratio 25 40 78 94 70 15.8 25.1 30.7 36.1 31.1 0 10 20 30 40 0 20 40 60 80 100 120 '21.9 '22.9 '23.9 '24.9 '25.9 (%) 39 Domestic wheat flour shipment volume +0.1 Sales expansion costs (0.4) Bran prices (0.2) Cost related and others (0.6) Overseas operating profit (1.9) * From FY2026, the criteria for allocating company-wide expenses have changed. The impact of these changes has been removed from the year-on-year analysis. Flour milling Processed food Others Prepared Dishes and Other Prepared Foods ¥+0.2 billion (100 millions of yen)
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3. Non-operating Income (Expenses) / Extraordinary Income (Losses) (Results) Fiscal 2025 Results First Six Months of Fiscal 2026 Results YoY difference Comments Net financial income (0) 4 +4 Share of profit (loss) of entities accounted for using equity method 10 14 +3 Others 0 4 +3 Total non-operating income (expenses) 11 22 +11 Gain on sale of non-current assets ー 14 +14 Gain on sale of investment securities 43 47 +5 Impairment losses (1) (87) (87) (Current year) India yeast business Loss on factory closures ー (16) (16) (Current year) Okayama and Sakaide Plants of Nisshin Flour Milling Others (2) (8) (5) Total extraordinary income (losses) 39 (49) (89) * Figures rounded to the nearest 100 million yen. (100 millions of yen) 40 [Extraordinary Income (Losses)] [Non-operating Income (Expenses)]
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4. Statements of Cash Flows (Results) Fiscal 2025 Results First Six Months of Fiscal 2026 YoY difference Results Highlights Cash and cash equivalents at beginning of period 1,077 920 (157) Cash on hand* 961 Cash flows from operating activities 318 345 Profit before income taxes: +198, depreciation: +128, decrease in working capital: +62, income taxes paid: (79) +27 Cash flows from investing activities (147) (266) Capital expenditures (payment basis) (237) (119) Cash flows from financing activities (196) (181) Cash dividends paid (87) Decrease in short-term borrowings (for working capital), etc. (66) +15 Effect of exchange rate changes on cash and cash equivalents (8) 3 +11 Net increase (decrease) in cash and cash equivalents due to changes in the accounting period of consolidated subsidiaries 0 ー (0) Cash and cash equivalents at end of period 1,045 821 (224) Cash on hand* 948 Fiscal 2025 Results First Six Months of Fiscal 2026 Results YoY difference Highlights Capital expenditures (construction basis) 176 216 +40 Depreciation and amortization 115 128 +13 * Cash on hand includes deposits exceeding 3 months and operating bonds 41 (100 millions of yen) * Figures rounded to the nearest 100 million yen.
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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 (up 1% year on year) +1.1 Flour price revisions accompanying revised wheat prices, others (5.6) Bran prices (0.6) Overseas sales (4.5) (billions of yen) Flour milling ¥(9.6) billion Domestic processed food sales +4.9 Processed food sales +2.4 Oriental Yeast sales +3.4 Nisshin Pharma sales +0.0 Processed food ¥+10.7 billion NBC Meshtec sales (1.8) Facility construction sales, others (Nisshin Engineering, others) +11.2 Others ¥+9.4 billion Prepared Dishes and Other Prepared Foods ¥+7.9 billion Prepared dishes and other prepared foods sales +7.9 42
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5. Fiscal 2026 Forecasts (2) Operating Profit by Segment Forecasts YoY difference YoY difference*2 (corrected) Flour milling 278 (3) (16) Processed food 77 +13 +22 Prepared Dishes and Other Prepared Foods 60 +2 +4 Others 55 (8) (7) Adjustments*1 0 +2 +2 Total 470 +6 +6 (100 millions of yen) Domestic wheat flour shipment volume +0.3 Sales expansion costs (0.2) Bran prices (0.6) Cost related and others (1.1) Overseas operating profit (0.0) (billions of yen) ¥(1.6) billion Shipment volume +0.4 Sales expansion costs +0.0 Cost related and others +1.0 Overseas operating profit (incl. Oriental Yeast, Nisshin Pharma exports) +0.8 ¥+2.2 billion Sales +0.4 Cost related and others (1.1) ¥(0.7) billion 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 have 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. 43 Flour milling Processed food Others Prepared Dishes and Other Prepared Foods
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44 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.