Slides
Page 1
FY2027/3 1Q Business Results for the First Quarter of FY2027/3 NH Foods Ltd. August 3, 2026 Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 2
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） * The Company has adopted International Financial Reporting Standards (“IFRS”). * “Business profit” is calculated by deducting the cost of goods sold and selling, general and administrative expenses from net sales, and accounting for foreign exchange gains and losses determined by the Group, while deducting adjustments in accordance with IFRS and non-recurring items. * Due to rounding, numbers may not match totals. * FY2027/03, the Group established the "Sports & Entertainment Business Division" and implemented an organizational restructuring to place the existing Ballpark Business under its umbrella. Accordingly, from the first quarter of the fiscal year, the classification of reportable segments has been changed to the "Sports & Entertainment Business Division." In addition, due to a change in the scope of business divisions included in corporate overhead expenses, the amount of these expenses allo cated to each reportable segment has also been changed. Additionally, amounts for the cumulative first quarter of the year ended March 31, 2026 have been reclassified based on the new reportable segment information. CONTENTS Results/Segment Results Plan Key Financial Data/ Appendix 03 04 05 08 10 12 FY2027/3 1Q Results Summary FY2027/3 Full-Year Plan Summary Financial Highlights FY2027/3 1Q Results FY2027/3 1Q Results: Processed Foods Business Division FY2027/3 1Q Results: Fresh Meats Business Division FY2027/3 1Q Results: Sports & Entertainment Business Division 14 17 19 Plan Highlights for FY2027/3 Full-Year Plan Full-Year Plan: Processed Foods Business Division Full-Year Plan: Fresh Meats Business Division FY2026/3 Business Results at a Glance and FY2027/3 Plan Balance Sheets and Statements of Cash Flows Capital Expenditures, Depreciation and Amortization Appendix 22 23 24 25 01 02 03 Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 3
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） FY2027/3 1Q result Net sales Business profit Profit attributable to owners of the parent Management indicators - FY2027/3 1Q Results Summary ¥384.9 billion ¥19.4 billion ¥10.8 billion +8.7% year-on-year +19.5% year-on-year (5.6%) year-on-year 3 [Net sales] • Higher selling prices for imported fresh meats, higher unit prices for Australian beef, and growth in the consumer products of the Processed Foods Business contributed [Business profit] -Advantage of vertical integration system amid inflation and profit generation through procurement optimization- Growth in the Fresh Meats Business Division and the Sports and Entertainment Business Division drove overall growth and like full-year business profit in the previous fiscal year, business profit in 1Q also reached a record high Internal factors • Fresh Meats: Appropriate pricing for imported fresh meats and thorough inventory control contributed • Fresh Meats: Improved productivity in domestic chicken production and expanded external procurement • SE*: Income from tickets, advertising, merchandise, and concessions was strong, driven by solid match attendance. • Processed Foods: Growth in mainstay brands, including Schau Essen, generated positive volume and product mix effects, but lower commercial sales volumes and higher logistics costs lowered profits * SE:Sports & Entertainment Business External factors: Headwinds mainly affected the Processed Foods Business • Sharply increased prices for raw materials, including beef • Weakening of the yen [Profit attributable to owners of the parent for the period] • Profit declined due to higher income tax expense Topics FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 4
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） FY2027/3 full-year plan Net sales Business profit Profit attributable to owners of the parent Management indicators FY2027/3 Full-Year Plan Summary4 +2.9% year-on-year (10.7%) year-on-year +8.4% year-on-year (0.8%) year-on-yearROIC EPS 5.3% ¥403.68 +¥42.55 year-on-year +0.6% year-on-yearROE 7.2% Topics [Net sales] • Securing sales through growth of consumer products and early recovery of commercial products in the domestic processed foods business, and through top- line growth in the overseas processed foods business • Securing sales by leveraging global procurement capabilities to expand sales volume in the Fresh Meats Business, and by expanding sales volume in the domestic market [Business profit] • Processed Foods: Securing gross profit through top-line growth and generating profit through price revisions that absorb higher costs • Fresh Meats: Profit will likely fall, reflecting soaring market prices for Australian cattle and changes in the external environment for imported fresh meats • SE: Higher costs for increasing appeal and opening a new station are expected [Profit attributable to owners of the parent] • Net profit is expected to increase as the impact of the previous fiscal year's extraordinary loss subsides [Management indicators] • ROE: We are continuing efforts to improve profitability and optimize capital efficiency (¥ billion) FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix ¥1,500.0 billion ¥61.0 billion ¥38.0 billion Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 5
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） (¥ billion) FY2026/3 1Q FY2027/3 1Q Variance Variance (%) Net sales 354.1 384.9 30.8 8.7% Business profit 16.2 19.4 3.2 19.5% Business profit ratio 4.6% 5.0% 0.5% - Profit before tax 18.4 18.5 0.1 0.6% Profit attributable to owners of the parent 11.4 10.8 (0.6) (5.6%) Financial Highlights (1) FY2027/3 1Q Results5 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 6
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） (¥ billion) FY2026/3 1Q FY2027/3 1Q Variance Variance (%) FY2026/3 1Q FY2027/3 1Q Variance Variance (%) Processed Foods Business Division 129.0 132.2 3.2 2.5% 0.9 0.7 (0.1) (13.9%) Fresh Meats Business Division 250.3 280.8 30.5 12.2% 12.7 15.3 2.6 20.4% Sports & Entertainment Business Division 11.1 12.5 1.5 13.2% 3.8 4.9 1.1 29.2% Eliminations, Adjustments and Others (36.3) (40.6) (4.3) - (1.1) (1.5) (0.4) - Consolidated 354.1 384.9 30.8 8.7% 16.2 19.4 3.2 19.5% Net sales Business profit Financial Highlights (2) FY2027/3 1Q Results6 FY2027/3 1Q ResultsFY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 7
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） (¥ billion) Financial Highlights (3) FY2027/3 1Q Results Changes in Business Profit Results 7 • External environment ¥(0.9) billion • Internal improvement ¥(0.2) billion • Dairy products, etc. ¥0.2 billion • Other ¥0.8 billion • Overseas ¥0.1 billion FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix • External environment ¥0.2 billion • Costs ¥(1.7) billion • Internal improvement ¥5.7 billion • Other ¥0.2 billion • Australia ¥(1.2) billion • Other overseas ¥0.7 billion • Impact of the fire ¥(1.2) billion Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 8
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Sales result by consumer product/channel for 1Q of FY2027/3 (YoY) (¥ billion) FY2027/3 1Q Results: Processed Foods Business Division (1) * The Schau Essen category includes Schau Essen and Schau Essen Slice. Increase in net sales Decrease in business profit Domestic: Gross profit fell, due to a lower adoption rate of commercial-use products SG&A expenses increased and raw materials prices rose due to the Middle East situation Overseas: Thailand: Profit declined due to rising costs for chicken raw materials and foreign exchange impacts despite increased production volume Ham and sausages Amount Wieners 108% Schau Essen category* 108% Other wieners 109% Loin hams, bacon 98% Consumer 104% Commercial-use 102% Total 104% Processed foods Amount Chilled bakery 105% Chuka Meisai 98% Fried chicken 92% Hamburg and meatball 107% Consumer 107% Commercial-use 91% Total 100% Domestic: Consumer products grew, driven by mainstay brands In commercial products, the extract business performed strongly but all other categories were weak Overseas: North America: Processed chicken performed solidly Production volume of acquired company trended up FY2026/3 1Q FY2027/3 1Q Variance Variance (%) Net sales 129.0 132.2 3.2 2.5% of which domestic business 98.5 97.7 (0.8) (0.8%) of which overseas business 30.5 34.5 4.0 13.0% Business profit 0.9 0.7 (0.1) (13.9%) of which domestic business 1.3 1.1 (0.2) (15.7%) of which overseas business (0.5) (0.4) 0.1 - Business profit ratio 0.7% 0.6% (0.1%) ‐ of which domestic business 1.3% 1.1% (0.2%) ‐ of which overseas business - - - ‐ 8 Although our sales strategy for consumer products helped get sales back on the growth track as planned at the beginning of the fiscal year, a slump in commercial products led to sales decline in domestic business FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 9
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） 1.1 1.3 0.8 0.2 (0.2) (0.9) FY27/3 Business profit (domestic) Other (domestic account settlement adjustments, etc.) Dairy/marine products & extract/primary processed products and others Internal improvement External environment FY26/3 Business profit (domestic) FY2027/3 1Q Results: Processed Foods Business Division (2) Analysis of factors for changes in business profit 9 [External environment] • Sharply increased prices for raw materials, including beef • Sharply increased prices for packaging materials and other materials, and electric power costs due to the situation in the Middle East [Internal improvement] (Net sales) • Positive sales volume and product mix effects were generated through growth in Schau Essen and other mainstay brands • Sales result reflects decreased production volume due to a lower adoption rate of commercial products (Expenses) • Higher sales commissions and logistics costs due to expanded sales • Despite reduction in fixed costs mainly through production line reductions, labor costs increased [Dairy/marine products & extract/primary processed products and others] • Profits were secured mainly due to strong performance in the extract business and successful price pass-through to offset sharply increased procurement costs [Other] DX and IT-related costs and other expenses decreased compared to the previous year. [Overseas] • North America: Profits were secured due to increases in sales volume of processed chicken products and falling raw material costs The manufacturing system at the acquired company continues to improve, supporting increased production volumes • Thailand : Profit declined due to rising costs for chicken raw materials and foreign exchange impacts despite increased production volume(0.4) (0.5) 0.1 FY27/3 Business profit (overseas) Overseas FY26/3 Business profit (overseas) Overseas business Domestic business Volume and mix improvements +0.5 Higher costs (0.7) FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix (¥ billion) Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 10
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Increase in net sales Increase in business profit FY2027/3 1Q Results: Fresh Meats Business Division (1)10 FY2026/3 1Q FY2027/3 1Q Variance Variance (%) Net sales 250.3 280.8 30.5 12.2% of which domestic business 212.7 228.9 16.2 7.6% of which Australia business 37.6 51.9 14.3 38.1% Business profit 12.7 15.3 2.6 20.4% of which domestic business 9.7 13.5 3.8 39.1% of which Australia business 2.9 1.7 (1.2) (41.1%) Business profit ratio 5.1% 5.4% 0.4% ‐ of which domestic business 4.6% 5.9% 1.3% ‐ of which Australia business 7.8% 3.3% (4.5%) ‐ 98% 105% 96% Volume retailers Restaurants Other Nippon Food Sales Group Quarterly sales volumes by channel Overall volume growth of 98% (108% in value terms) Nippon Food Sales Group Quarterly sales volumes and values by meat type (year on year) Domestic Imported Total Volume Amount Volume Amount Volume Amount Beef 101% 109% 97% 113% 98% 111% Pork 104% 109% 96% 100% 101% 106% Chicken 102% 104% 74% 105% 94% 105% Total 102% 107% 89% 107% 97% 107% • Net sales increased through appropriate price pass-through amid sharply increased procurement costs for various livestock categories • Net sales increased while maintaining sales volume amid rising unit selling prices in the Australian beef business • Profits increased due to appropriate pricing for imported fresh meats and thorough inventory control • Profits were secured by further developing appropriate price pass-through, brand strategies, and channel strategies amid rising costs in the sales division * Domestic businesses include overseas subsidiaries, excluding those in Australia FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix * Nippon Food Sales Group refers to fresh meat sales companies. Higashi Nippon Food, Kanto Nippon Food, Naka Nippon Food, Nishi Nippon Food, NH Japan Food (¥ billion) Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 11
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） FY2027/3 1Q Results: Fresh Meats Business Division (2) Analysis of factors for changes in business profit 11 [External environment] • Increase in domestic pork market price and imported fresh meat prices [Expenses] • Increase in personnel expenses and logistics costs [Internal improvement] • Appropriate pricing for imported fresh meats and thorough inventory control contributed to improvement • Improved productivity in domestic chicken production and expanded external procurement • Income was secured by further developing appropriate price pass-through, brand strategies, and channel strategies in the sales division [Australia] • Sales volume was maintained through flexible sales strategy, despite decline in exports to China • Gross profit fell due to soaring market prices for cattle [Other overseas] • Volume of procurement from South America increased, reflecting efforts to tap into demand for alternatives to Spanish pork meat following the temporary suspension of exports. * Impact of the fire: Profit declined due to lower production of domestic chickens and lost opportunities caused by the fire at the Shiretoko Plant of Nippon White Farm Co., Ltd. FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix 15.3 154 159 12.7 (1.2) 0.7 （1.2） 0.2 5.7 (1.7) 0.2 FY27/3 Business profit Impact of the fire Other overseas Australia Other expenses Internal improvement Expenses External environment FY26/3 Business profit (¥ billion) Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 12
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 FY2026/3 1Q FY2027/3 1Q Professional Baseball Official Games 1,080 thousand （30,123/per game） Others 530 thousand Others 450 thousand Professional Baseball Official Games 1,110 thousand （30,729/per game） Hokkaido Ballpark F Village Visitors (thousand people) Total 1,620 thousand Total 1,560 thousand 12 （Offering vocational experience programs for children） (Hosting events on non-game days to encourage more visitors） （Enhancing appeal through unique food-focused events） （ES CON FIELD-themed uniform event） Topics ・Farm facility relocation planned Targeting facility opening in Eniwa, Hokkaido between 2030 and 2031 ※Conceptual rendering of the facility FY2026/3 1Q FY2027/3 1Q Variance Variance (%) Net sales 11.1 12.5 1.5 13.2% Business profit 3.8 4.9 1.1 29.2% Business profit ratio 34.3% 39.2% 4.9% ‐ Increases in net sales and business profit • Expanded the appeal of F VILLAGE by upgrading stadium entertainment—including the new installation of LED ribbon boards—and creating diverse opportunities for fan engagement. • Income from tickets, advertising, merchandise, and concessions was strong, driven by solid match attendance. FY2027/3 1Q Results: Sports & Entertainment Business Division FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix (¥ billion)
Page 13
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） CONTENTS Results/Segment Results Plan Key Financial Data/ Appendix 03 04 05 08 10 12 FY2027/3 1Q Results Summary FY2027/3 Full-Year Plan Summary Financial Highlights FY2027/3 1Q Results FY2027/3 1Q Results: Processed Foods Business Division FY2027/3 1Q Results: Fresh Meats Business Division FY2027/3 1Q Results: Sports & Entertainment Business Division 14 17 19 Plan Highlights for FY2027/3 Full-Year Plan Full-Year Plan: Processed Foods Business Division Full-Year Plan: Fresh Meats Business Division FY2026/3 Business Results at a Glance and FY2027/3 Plan Balance Sheets and Statements of Cash Flows Capital Expenditures, Depreciation and Amortization Appendix 22 23 24 25 02 Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited) 01 03
Page 14
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） FY2026/3 Full-year result FY2027/3 Full-year plan Variance Variance (%) Net sales 1,457.4 1,500.0 42.6 2.9% Business profit 68.3 61.0 (7.3) (10.7%) Business profit ratio 4.7% 4.1% (0.6%) - Profit before tax 54.5 55.0 0.5 0.8% Profit attributable to owners of the parent 35.1 38.0 2.9 8.4% ROE 6.6% 7.2% 0.6% - ROIC 6.1% 5.3% (0.8%) - EPS (yen) 361.13 403.68 42.55 - Plan Highlights (1) for FY2027/3 Full-Year Plan (¥ billion) 14 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 15
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） (¥ billion) 1Q 1st half 2nd half Full year Results Initial forecast Forecast as of 1Q Variance Initial forecast Forecast as of 1Q Variance Initial forecast Forecast as of 1Q Variance Processed Foods Business Division 0.7 4.5 3.0 (1.5) 7.5 9.0 1.5 12.0 12.0 0.0 Fresh Meats Business Division 15.3 23.0 24.0 1.0 27.0 26.0 (1.0) 50.0 50.0 0.0 Sports & Entertainment Business Division 4.9 9.0 9.5 0.5 (5.0) (5.5) (0.5) 4.0 4.0 0.0 Eliminations, Adjustments and Others (1.5) (2.5) (2.5) 0.0 (2.5) (2.5) 0.0 (5.0) (5.0) 0.0 Consolidated 19.4 34.0 34.0 0.0 27.0 27.0 0.0 61.0 61.0 0.0 Plan Highlights (2) for FY2027/3 Full-Year Plan Business profit targets by segment 15 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 16
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Plan Highlights (3) for FY2027/3 Full-Year Plan (¥ billion) 16 Changes in Business Profit Plan FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix • External environment ¥(8.1) billion • Internal improvement ¥(9.3) billion • Dairy products, etc. ¥0.5 billion • Other ¥0.8 billion • Overseas ¥2.3 billion • External environment ¥(1.6) billion • Costs ¥(9.5) billion • Internal improvement ¥12.2 billion • Australia ¥(8.9) billion • Other overseas ¥0.5 billion • Impact of the fire ¥(3.8) billion Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 17
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Full-Year Plan: Processed Foods Business Division (1)17 Increase in net sales Increase in business profit Domestic: Implementing appropriate price revisions in response to rising raw materials prices Overseas: North America: Securing gross profit by reducing manufacturing expense through increased production efficiency and by expanding sales volume Thailand: Income is expected to be secured through product consolidation and manufacturing efficiencies Domestic: Consumer: Maintaining sales strategy for expanding sales volume Commercial-use: Strengthening new proposals and aiming for early recovery Overseas: North America: Securing sales through early normalization of production structures at acquired plant and promotion of sales strategy Thailand: Expanding internal sales through co- creation with CPF* (¥ billion) FY2026/3 Results FY2027/3 Initial forecast FY2027/3 Forecasts As of 1Q Variance Variance (%) Net sales 530.3 560.0 560.0 29.7 5.6% of which domestic business 403.2 420.0 420.0 16.8 4.2% of which overseas business 127.1 140.0 140.0 12.9 10.1% Business profit 7.2 12.0 12.0 4.8 66.7% of which domestic business 9.4 12.0 11.9 2.5 26.6% of which overseas business (2.2) 0.0 0.1 2.3 - Business profit ratio 1.4% 2.1% 2.1% 0.8% ‐ of which domestic business 2.3% 2.9% 2.8% 0.5% ‐ of which overseas business - - - - ‐ FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Ham and sausages Amount Wieners 109% Schau Essen category* 108% Other wieners 110% Loin hams, bacon 99% Consumer 107% Commercial-use 103% Total 106% Processed foods Amount Chilled bakery 106% Chuka Meisai 102% Fried chicken 99% Hamburg and meatball 108% Consumer 107% Commercial-use 97% Total 103% Full-year sales plan by consumer product/channel (YoY) * CPF：Charoen Pokphand Foods Public Company Limited * The Schau Essen category includes Schau Essen and Schau Essen Slice. Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 18
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） 11.9 9.4 0.8 0.5 9.3 (8.1) FY27/3 Business profit (domestic) Other expenses (domestic account settlement adjustments, etc.) Dairy/marine products Extract/primary processed products and others Internal improvement External environment FY26/3 Business profit (domestic) 0.1 2.3 (2.2) FY27/3 Business profit (overseas) Overseas FY26/3 Business profit (overseas) Overseas business Domestic business Full-Year Plan: Processed Foods Business Division (2)18 Business Profit Plan: Analysis of Factors Behind Change vs. Previous Year [External environment] • Sharp increase in prices for raw materials, including pork • Sharply increased prices for packaging materials and other materials, and electric power costs due to the situation in the Middle East [Internal improvement] Accelerating structural reforms and laying the foundations for business structure for succeeding in a dramatically changing external environment (Increase the top line) Executing sales strategy for "sales volume expansion" after price revisions • Expanding sales volume through strategic promotional activities targeting each growth- driving company • Strengthening product proposals that solve issues faced by companies, aiming for early recovery of commercial products (Expenses) Responding to rising variable costs by reducing fixed costs and increasing business efficiency to control expenses • Continuing to reduce fixed costs through optimization of personnel structure, organizational streamlining, and line consolidation • Using AI to increase business efficiency and reduce expenses [Dairy/marine products & extract/primary processed products and others] • Implementing appropriate price pass-through in connection with rising procurement prices for primary processed products and make flexible product proposals • Implementing price revisions for dairy products [Overseas] • North America: Executing sales strategy for expanding sales of existing products and developing new sales contacts • Thailand: Securing income by strengthening sales in the local market through co- creation with CPF, consolidating products and increasing manufacturing efficiency FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix (¥ billion) Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 19
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Full-Year Plan: Fresh Meats Business Division (1)19 Increase in net sales Decrease in business profit • Expanding procurement volume by leveraging global procurement capabilities • The sales division will secure sales by implementing appropriate price pass-through and strengthening brand strategies for sales volume expansion (¥ billion) FY2026/3 Results FY2027/3 Initial forecast FY2027/3 Forecasts As of 1Q Variance Variance (%) Net sales 1,034.1 1,045.0 1,045.0 10.9 1.1% of which domestic business 863.6 869.0 869.0 5.4 0.6% of which Australia business 170.5 176.0 176.0 5.5 3.2% Business profit 61.3 50.0 50.0 (11.3) (18.4%) of which domestic business 46.5 43.0 44.0 (2.5) (5.4％) of which Australia business 14.8 7.0 6.0 (8.9) (59.5%) Business profit ratio 5.9% 4.8% 4.8％ (1.1%) ‐ of which domestic business 5.4% 4.9% 5.1％ (0.3％) ‐ of which Australia business 8.7% 4.0% 3.4％ (5.3％) ‐ • In the Australian beef business, gross profit is expected to fall due to soaring market prices for cattle and weak sales prices • Profit will be impacted by changes in the external environment for imported fresh meats and increased fixed costs due to the fire in Shiretoko * Domestic businesses include overseas subsidiaries, excluding those in Australia About the Australian beef business Breeding Fattening Sales Sharply increased market prices for cattle Deepening added value strategy, including grain feeding and premium grass Building a geographically diversified, well-balanced global sales portfolio Reducing volatility through flexible business strategies in line with changes in the external environment FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Purchasing from external sources Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 20
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Full-Year Plan: Fresh Meats Business Division (2)20 Business Profit Plan: Analysis of Factors Behind Change vs. Previous Year [External environment] • Sharp increase in feed prices • Increase in packaging and fuel costs due to the impact of the situation in Middle East [Expenses] • Increase in personnel expenses and logistics costs, etc. [Internal improvement] Sales: Demonstrating strong sales capabilities and executing sales strategy for overcoming rising costs • Proposing and implementing corporate strategies for solving issues faced by each growth-driving company • Executing route sales strategies in line with the characteristics of each urban and regional area • Securing further revenue by strengthening sales of processed products and branded fresh meats Production: Absorbing costs through improved productivity and increased production volume • Pursuing stable operation and further productivity at new domestic hog farming facilities • Expanding production volume of "Sakurahime" and further strengthening external procurement to minimize lost opportunities [Australia] • Gross profit is expected to fall due to persistently high market prices for cattle and weak sales prices • Curbing volatility through flexible production structure according to changes in global market conditions [Other overseas] • Leveraging value chain strengths and seeking sales volume expansion through procurement that meets demand in Japan * Impact of the fire: Profit declined due to lower production of domestic chickens and lost opportunities caused by the fire at the Shiretoko Plant of Nippon White Farm Co., Ltd. FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix 50.0 500 535 61.3 (3.8) 0.5 (8.9) 12.2 (9.5) (1.6) FY27/3 Business profit Impact of the fire Other overseas Australia Internal improvement Expenses External environment FY26/3 Business profit (¥ billion) Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 21
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） CONTENTS Results/Segment Results Plan Key Financial Data/ Appendix 03 04 05 08 10 12 FY2027/3 1Q Results Summary FY2027/3 Full-Year Plan Summary Financial Highlights FY2027/3 1Q Results FY2027/3 1Q Results: Processed Foods Business Division FY2027/3 1Q Results: Fresh Meats Business Division FY2027/3 1Q Results: Sports & Entertainment Business Division 14 17 19 Plan Highlights for FY2027/3 Full-Year Plan Full-Year Plan: Processed Foods Business Division Full-Year Plan: Fresh Meats Business Division FY2026/3 Business Results at a Glance and FY2027/3 Plan Balance Sheets and Statements of Cash Flows Capital Expenditures, Depreciation and Amortization Appendix 22 23 24 25 03 Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited) 01 02
Page 22
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） FY2027/3 1Q Result [Other income and expenses] Mainly reflects the occurrence of a foreign exchange gain of approx. ¥2.4 billion FY2027/3 Full-year plan [Other income and expenses] Impairment losses on fixed assets of approx. ¥2.0 billion are expected due to structural reforms. FY2026/3 Business Results at a Glance and FY2027/3 Plan 1Q results Full-year results 1Q results Variance (%) Full-year plan Variance (%) Net sales 354,141 1,457,391 384,946 8.7% 1,500,000 2.9% Cost of goods sold 288,357 1,206,807 319,106 10.7% 1,245,000 3.2% Gross profit 65,784 250,584 65,840 0.1% 255,000 1.8% Gross profit ratio 18.6% 17.2% 17.1% - 17.0% - Selling expenses and general and administrative expenses 47,523 192,984 48,604 2.3% 197,000 2.1% Operating profit 18,261 57,600 17,236 (5.6%) 58,000 0.7% Other income and expenses 402 (1,481) 2,127 429.1% (500) - Finance income and costs 12 (254) (200) - (1,500) - Share of profit (loss) in investments accounted for using the equity method (257) (1,320) (640) - (1,000) - Profit before tax 18,418 54,545 18,523 0.6% 55,000 0.8% Income tax expense 5,863 17,627 6,313 7.7% 16,000 (9.2%) Tax rate 31.8% 32.3% 34.1% - 29.1% - Profit attributable to owners of the parent 11,417 35,066 10,772 (5.6%) 38,000 8.4% ROE - 6.6% - - 7.2% - ROIC - 6.1% - - 5.3% - EPS (yen) - 361.13 - - 403.68 - Operating profit 18,261 57,600 17,236 (5.6%) 58,000 0.7% Foreign exchange gain (loss) (64) 5,963 2,815 - - - Adjustments for IFRS, etc. (1,956) 4,779 (636) - - - Business profit 16,241 68,342 19,415 19.5% 61,000 (10.7%) (¥ million) FY2026/3 results FY2027/3 plan 22 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 23
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Balance Sheets and Statements of Cash Flows End of FY2025/3 End of FY2026/3 FY2027/3 1Q Variance variance (%) Total current assets 406,308 438,302 462,330 24,028 5.5% Total non-current assets 542,964 559,175 557,300 (1,875) (0.3%) Total assets 949,272 997,477 1,019,630 22,153 2.2% Total current liabilities 257,743 247,066 270,959 23,893 9.7% Total non-current liabilities 154,457 198,719 198,648 (71) 0.0% Total liabilities 412,200 445,785 469,607 23,822 5.3% Total equity 537,072 551,692 550,023 (1,669) (0.3%) Total liabilities and equity 949,272 997,477 1,019,630 22,153 2.2% DE ratio 0.43 0.43 0.47 - - FY2025/3 1Q FY2026/3 1Q FY2027/3 1Q Variance YoY variance (%) Cash flows from operating activities 8,505 21,781 1,961 (19,820) (91.0%) Cash flows from investing activities (4,742) (8,124) (10,594) (2,470) - Cash flows from financing activities 9,155 (16,464) (2,766) 13,698 - <Net cash provided by (used in) operating activities> Profit before tax amounted to ¥18,523 million, depreciation and amortization expenses amounted to ¥11,062 million and the increase in trade and other payables amounted to ¥8,215 million, while the increase in inventories amounted to ¥20,640 million. As a result, net cash provided by operating activities amounted to ¥1,961 million. <Net cash provided by (used in) investing activities> Acquisition of fixed assets amounted to ¥10,506 million. As a result, net cash used in investing activities amounted to ¥10,594 million. <Net cash provided by (used in) financing activities> Cash dividends amounted to ¥15,172 million and payments for acquisition of treasury stock amounted to ¥10,001 million, while increase in short-term bank loans amounted to ¥25,885 million. As a result, net cash used in financing activities amounted to ¥2,766 million. <Total current assets> Current assets increased by 5.5% from the end of the previous fiscal year to ¥462,330 million as inventories increased by 13.7% to ¥174,468 million mainly due to an increase in unit prices and stocks of fresh meats, and other financial assets increased by 119.4% to ¥16,097 million while cash and cash equivalents decreased by 15.1% to ¥58,321 million. <Total non-current assets> Non-current assets decreased by 0.3% from the end of the previous fiscal year to ¥557,300 million because property, plant and equipment decreased by 0.2% to ¥375,187 million, while intangible assets and goodwill increased by 2.8% to ¥40,150 million due to the increase in software associated with the DX promotion. <Total liabilities> Total liabilities increased by 5.3% from the end of the previous fiscal year to ¥469,607 million mainly because interest-bearing liabilities increased by 10.7% to ¥252,983 million due to an increase in borrowings prepared for current capital needs, although income taxes payable decreased by 30.7% to ¥10,758 million. (¥ million) 23 (¥ million) FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 24
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） * Excluding capital expenditures and depreciation related to right-of-use assets Capital Expenditures, Depreciation and Amortization 1Q results 1Q results Variance YoY variance (%) Full-year plan Capital expenditures 5,288 7,523 2,235 42.3% 60,000 Processed Foods Business Division 2,032 2,315 283 13.9% 17,200 Fresh Meats Business Division 1,800 3,463 1,663 92.4% 30,000 Sports & Entertainment Business Division 1,163 188 (975) (83.8%) 7,400 Eliminations, Adjustments and Others 293 1,557 1,264 431.4% 5,400 Depreciation and amortization 7,559 7,678 119 1.6% 32,000 We will accelerate strategic allocation to growth fields while reinforcing existing businesses through maintenance, upgrades, and structural reforms. [Processed Foods Business Division] We expect to make investments focusing mainly on the maintenance and renewal of domestic and overseas production facilities [Fresh Meats Business Division] We expect investments to strengthen domestic upstream operations and expand feedlots in Australia [Sports & Entertainment Business Division] We expect to make growth investments for enhancing customer experience and developing surrounding facilities in preparation for the opening of a new station in 2028 [Growth areas] We anticipate investments in brand enhancement, overseas business expansion, R&D enhancement, and environmental initiatives (¥ million) FY2027/3 Full year Plan FY2027/3 24 FY2026/3 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 25
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Appendix
Page 26
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） (¥ billion) FY2027/3 Processed Foods Business Division 1Q Business Profit: Analysis of Factors Behind Change vs. Previous Year 26 1Q YoY change Main reasons for year on year changes Hams and sausages and processed products (1.2) Total gross profit (0.4) Volume factors 0.4 Our sales strategy to increase consumer volume was effective, helping the top line recover Volume decreased due to sluggish adoption rates at major commercial-use customers Unit price factors (0.8) Product mix 0.1 The consumer profit structure improved through the recovery of mainstay brands and reviews of low-profit products External environment (0.9) Principal raw materials (0.6) Sharply increased prices for raw materials, including beef Other materials (0.3) Sharply increased prices for packaging materials, etc. due to the situation in the Middle East Other costs (0.8) Electric power 0.0 Other expenses (manufacturing expenses, SG&A expenses, etc.) (0.7) Higher sales commissions and logistics costs due to expanded sales Labor costs increased despite reducing fixed costs through production line reductions Dairy/marine products & extract/primary processed products and others 0.2 Strong performance mainly in the extract business Profits secured through appropriate price pass-through in response to sharply increased procurement raw materials costs Other (domestic account settlement adjustments, etc.) 0.8 DX and IT-related costs and other expenses decreased compared to the previous year. Overseas 0.1 North America: In addition to steady sales in existing businesses and falling raw material costs, the manufacturing system at the acquired company continues to improve, supporting increased production volumes Thailand: Profit declined due to rising costs for chicken raw materials and foreign exchange impacts despite increased production volume Total (0.1) FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 27
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） (¥ billion) FY2027/3 Processed Foods Business Division Full-Year Business Profit Plan: Analysis of Factors Behind Change vs. Previous Year 27 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix YoY change Main factors behind the forecast variance FY2027/3 Initial forecast Hams and sausages and processed products (1.2) (0.3) Total gross profit 4.9 (3.5) Volume factors 8.7 Expanding sales volume through strategic promotional activities targeting each growth-driving company Strengthening new product proposals to resolve the issues faced by companies for the early recovery of commercial products (3.0) Unit price factors (3.8) :(0.5) Product mix 3.2 Increasing unit prices through the implementation of appropriate price revisions in response to rising raw materials prices 1.8 External environment (7.1) (2.3) Principal raw materials (3.7) Sharply increased pork prices (0.2) Other materials (3.3) Sharply increased prices for packaging materials, etc. due to the situation in the Middle East (2.2) Other costs (3.7) 3.2 Electric power (1.1) (0.9) Other expenses (manufacturing expenses, SG&A expenses, etc.) (2.7) Higher sales commissions and logistics costs due to expanded sales / Continuing to reduce fixed costs through optimization of personnel structure, organizational streamlining, and line consolidation / Using AI to increase business efficiency and reduce expenses 4.1 Dairy/marine products & extract/primary processed products and others 0.5 Implementing appropriate price pass-through in connection with rising procurement prices for primary processed products and making flexible product proposals Implementing price revisions for dairy products 0.0 Other (domestic account settlement adjustments, etc.) 0.8 DX and IT-related costs and other expenses decreased compared to the previous year. 0.3 Overseas 2.3 North America: Implementing sales strategies for expanding sales of existing products and developing new sales contacts Thailand: Securing income by strengthening sales in the local market through co-creation with CPF and by consolidating products and increasing manufacturing efficiency 0.1 Total 4.8 0.0
Page 28
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） 1Q YoY change Main reasons for year on year changes Domestic beef/pork business 0.5 Securing profit through higher domestic pork market prices and expansion in the number of pork production Domestic chicken business (1.0) Shiretoko fire will have a negative impact of ¥1.2 billion but improvement in productivity at other four plants will offset rising feed prices and rising production costs Imported fresh meats business 3.7 Domestic imported fresh meats business 2.9 Profits will increase due to appropriate pricing for imported fresh meats and thorough inventory control Overseas business 0.7 Volume of procurement from South America will increase, reflecting efforts to tap into demand for alternatives to Spanish pork meat following the temporary suspension of exports Sales (Nippon Food Group companies) and logistics section 0.6 Securing income by further developing appropriate price pass-through, brand strategies, and channel strategies Australia business (1.2) Sales volume will be maintained through a flexible sales strategy, despite decline in exports to China, but gross profit will fall due to soaring market prices for cattle Other (adjustments, etc.) 0.1 Total 2.6 (¥ billion) FY2027/3 Fresh Meats Business Division 1Q Business Profit: Analysis of Factors Behind Change vs. Previous Year 28 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 29
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） (¥ billion) FY2027/3 Fresh Meats Business Division Full-Year Business Profit Plan: Analysis of Factors Behind Change vs. Previous Year YoY variance Main reasons for year on year changes FY2027/3 Initial forecast Domestic beef/pork business 0.4 Securing income by pursuing stable operation and further productivity at new domestic hog farming facilities, despite soaring feed prices 0.4 Domestic chicken business (3.1) Expanding production volume of "Sakurahime" and further strengthening external procurement to minimize lost opportunities 0.5 Imported fresh meats business (0.6) (0.4) Domestic imported fresh meats business (1.1) Gross profit will fall due to changes in the external environment for imported fresh meats 0.1 Overseas business 0.5 Leveraging value chain strengths and sought sales volume expansion through procurement that meets demand in Japan (0.5) Sales (Nippon Food Group companies) and logistics section 0.9 Proposing and implementing corporate strategies for solving issues faced by each growth-driving company and executing route sales strategies according to the characteristics of urban and regional areas Securing further income by strengthening sales of processed products and branded fresh meats 0.5 Australia business (8.9) Gross profit will fall due to persistently high market prices for cattle and weak sales prices Curbing volatility through flexible production structure according to changes in global market conditions (1.0) Other (adjustments, etc.) 0.0 0.0 Total (11.3) 0.0 29 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 30
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） External Environment: Market Conditions (1) (¥/kg) (¥/kg) (¥/kg) (A$/kg) 30 450 500 550 600 650 700 750 800 850 900 950 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2025/3 FY2026/3 FY2027/3 400 450 500 550 600 650 700 750 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2025/3 FY2026/3 FY2027/3 400.00 500.00 600.00 700.00 800.00 900.00 1,000.00 1,100.00 1,200.00 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2025/3 FY2026/3 FY2027/3 300 350 400 450 500 550 600 650 700 750 800 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2025/3 FY2026/3 FY2027/3 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Source: Weighted average price for chicken meat* Simple average unit price based on Agriculture & Livestock Industries Corporation (ALIC) and Ministry of Agriculture, Forestry and Fisheries "Poultry Market Information" Source: Average price for top grade on the Tokyo Meat Market * TOKYO MEAT MARKET CO., LTD Source: Simple average unit price cited in "Daily Meat & Livestock" published by Shokuhin Sangyo Shimbunsha Co., Ltd.Source: MLA Domestic chicken market price Domestic pork carcass wholesale price Price of young Australian beef (producer sales price) Domestic price of Brazilian chicken thigh meat Scan the QR code or click the URL below for other data (collection of materials on market trends) https://www.nipponham.co.jp/ir/library/market_trend/ Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 31
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） External Environment: Market Conditions (2) (¥/kg) Source: Ministry of Finance's "Trade Statistics" (calculated as value ÷ volume) Source: Ministry of Finance's "Trade Statistics" (calculated as value ÷ volume) Source: Agriculture & Livestock Industries Corporation (ALIC) (¥ / ton) (¥/kg) Compound feed price 31 Price for imported natural intestines * Mainly sheep casing (also including pork and beef intestines, etc.) Import price for seasoned pork (GSP) 3,500 4,000 4,500 5,000 5,500 6,000 6,500 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2025/3 FY2026/3 FY2027/3 500 550 600 650 700 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2025/3 FY2026/3 FY2027/3 75,000 80,000 85,000 90,000 95,000 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2025/3 FY2026/3 FY2027/3 FY2027/3 1Q Results FY2027/3 Full-Year Plan Financial Data Appendix Copyright © NH Foods Ltd. All Rights Reserved. (Unauthorized reproduction prohibited)
Page 32
Copyright © NH Foods Ltd. All Rights Reserved. （無断転載禁止） Contact VBM Promotion Office NH Foods Ltd. ThinkPark Tower 2-1-1 Osaki, Shinagawa-ku, Tokyo 141-6014 Tel: +81-3-4555-8052 Email: nhfoods.ir@nipponham.co.jp Forward-looking statements This presentation includes forecasts regarding targets, strategies and earnings. These forecasts are based on information available at the current time and contain certain assumptions about the future. They are subject to numerous external uncertainties in areas such as economic environment, market trends and exchange rates. Actual performance may differ significantly from the targets in this presentation, and investment decisions should not be based exclusively on them