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November 15, 2012
Nippon Flour Mills Co., Ltd. http://www.nippn.co.jp
Code number: 2001
Haruki Kotera President
Chief Operating Officer
Briefing Session on the First Half of Fiscal Year ending March 31, 2013 (FY2013)
Completed fourth phase
of restructuring
Completed third phase
of restructuring
Completed second phase
of restructuring
Commenced first phase
of restructuring
05/07 Medium-term Business Plan
Medium-term Business Plan New Nippn Way
12/13 Medium-term Business Plan SG130 Phase II
10/11 Medium-term Business Plan
SG130
08/09 Medium-term Business Plan
SG100
Sustainable Growth Trajectory
2
100,000
150,000
200,000
250,000
300,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Operating income Ordinary income Net income
2013 (Forecast)
2014 (Forecast)
(FY)
(Millions of yen) (Millions of yen) Net sales
96.3 87.9 87.4109.2101.4 91.8 100.7
52.8 54.9 72.890.6 100.4111.2114.0126.2
138.7131.4
132.9140.54.9
4.9 8.126.0 25.0
27.526.7 25.6
25.9
28.828.8
27.3
27.8
87.886.4101.7
86.5 85.691.6 92.3 91.6 90.4 88.1 86.5 91.5
96.592.1 95.4 90.894.6
131.6
94.2
5.2
4.6
3.8
10.95.8
27.7
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Building a Stronger Business through Strategic Diversification (1)
¥500.0 bn
Other Flour milling Food
Net sales (Billions of yen)
250.7
215.8
158.3
261.6
(Forecast)
191.1 190.4
269.0
156.4 169.6 187.5 188.3 193.9 207.9 201.4
224.3 227.4 239.5
276.7 252.1
273.0 300.0
3
Completed fourth phase
of restructuring
Completed third phase
of restructuring
Completed second phase
of restructuring
Commenced first phase
of restructuring
05/07 Medium-term Business Plan
Medium-term Business Plan New Nippn Way
12/13 Medium-term Business Plan SG130 Phase II
10/11 Medium-term Business Plan
SG130
08/09 Medium-term Business Plan
SG100
(Forecast) (FY)
4.2 3.65.8 5.4
4.3 3.8
2.93.1
2.62.7
5.2 6.9
6.25.4
0.10.1
0.1
0.1
0.3
4.44.93.4 3.2
2.3 1.8 2.3 2.8 3.4
0.71.0
0.31.8
0.4
3.4
0.8
0.0
(0.4)
0.40.2
(0.2)
0.0
(0.1) (0.0)
0.1 0.6
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
¥25.0 bn
6.7 7.4
0.9
12.5
2.9 3.7
9.6
0.8 1.4 1.7
3.1 4.0 3.8
5.0
8.1 7.2
6.3
10.6 10.5 9.5
13.0
4
(Forecast)
Completed fourth phase
of restructuring
Completed third phase
of restructuring
Completed second phase
of restructuring
Commenced first phase
of restructuring
05/07 Medium-term Business Plan
Medium-term Business Plan New Nippn Way
12/13 Medium-term Business Plan SG130 Phase II
10/11 Medium-term Business Plan
SG130
08/09 Medium-term Business Plan
SG100
(Forecast) (FY)
Other Flour Milling Food
Operating income (Billions of yen)
Building a Stronger Business through Strategic Diversification (2)
Uncertain outlook for domestic operating environment
(1) Rising cost of imported resources (oil, rare metals, food)
(2) Weak consumer spending (deflation)
(3) Strong yen (forex)(4) Deregulation (new business
opportunities)(5) TPP (trade)
(6) Power shortages (energy)(7) Business tax cuts, consumption
tax hike (tax system)(8) CO2 reductions (environment)
(9) Aging society (LO)
Fiscal deterioration in advanced economies
(sovereign debt concerns) Reducing fiscal deficits
Inflation concerns in emerging markets
Change in monetary policy (shift from tightening to easing)
Strong growth potential in emerging markets
Recovery in corporate earnings
Corporate governance under the spotlight
Overcoming flood damage in Thailand
Great East Japan Earthquake March 11, 2011
Damage from tsunami and nuclear accident Rebuilding efforts gaining momentum
Europe’s debt crisis
Collapse of Lehman Brothers
Political instability
Source: Belle Investment Research of Japan Inc.
Operating Environment (1) – Economic Conditions
5
Stagflation conditions
56,710
48,780
53,270
48,430
69,120
76,030
64,750
49,82047,160 47,860
57,720
40,000
50,000
60,000
70,000
80,000
0.0
4.0
8.0
12.0
6
0
Chicago wheat price (front-month wheat prices on the last weekend of a month) (Source：CBOT)
Government sales prices of five types of imported wheat (Yen/ton) (including tax)
(Dollar/bushel) (Yen/ton)
Wheat prices
Operating Environment (2) –Wheat prices and government wheat purchase prices
Apr 2007 Oct 2007 Apr 2008 Oct 2008 Apr 2009 Oct 2009 Apr 2010 Oct 2010 Apr 2011 Oct 2011 Apr 2012 Oct 2012
Government wheat purchase prices
7
Background behind SG130 Phase II (1)
Phase I Pending Issues
Phase I Results
1) Reenergized the Group’s organization through widespread acceptance of the in-house company system
2) Enhanced the speed of commercialization of large-scale capital investments exceeding ¥20 billion
3) Secured improvements in earnings through new cost-cutting measures based on new methods
4) Entered business fields that boast significant growth potential overseas
5) Strengthened Group companies through comprehensive, optimal management
1) Quantitative targets yet to be achieved
2) Need to further bolster the Group’s ability to address changes in its business environment
8
Background behind SG130 Phase II (2) Large-scale capital investments amounting to
a total of ¥20 billion for improvements in earnings
Rice Flour
•Doubled production capacity (1,000t / year →2,000t / year) •Full-scale rice flour business operation
Kaminokawa Plant of Mizuho Foods Co., Ltd.
Completion – Now Part of Our Capacity
Buckwheat Flour, Buckwheat Mix
Kaminokawa Plant of Matsuya Flour Mills Co., Ltd.
• Relocation from Utsunomiya Plant for consolidation
Completion of construction: October 2011
Completion of construction: March 2011
Seasoned Fried Tofu (Soybean Processed Food)
Amagi Plant 2 of OK Food Industry Co., Ltd.
•Production capacity increased •Improved production efficiency
Completion of construction: March 2011
Premix (Overseas)
•Production capacity increased by 70% (12,000t / year → 20,000t / year)
•Improved production efficiency
Completion of construction: October 2010
NIPPN (Thailand) Co., Ltd.
Flour Milling Kobe-Konan Mill of Nippon Flour Mills Co., Ltd. Expansion of the flour mill, construction of a new silo for raw materials
• Increased production capacity
(13,700t / month →24,700t / month)
Start of work: June 2012 Completion of construction: September 2012
Frozen Food Ryugasaki Plant of NIPPN Frozen Foods Co., Ltd. Expansion and relocation from Takasaki Plant for consolidation
• Streamlined equipment
• Increased production capacity
Completion of construction: March 2012
Pet Food Chiba Plant of NPF Japan Co., Ltd. Expansion and improvements
• Increased production capacity
• Enhanced productivity
Completion of construction: March 2012
9
Overview of SG130 Phase II
Numerical targets for the final year of SG130 Phase II (consolidated basis) Net sales: ¥300 billion Operating income: ¥13 billion
SG130 Phase II
SG130 Phase I
Long-term vision (consolidated basis) Net sales: ¥500 billion Operating income: ¥25 billion
Build a foundation that is capable of strengthening fundamental earnings power
FY2013 A year in which to fully assess changes
in the business environment Strengthen fundamental earnings power
Accelerate the pace of sustainable growth
Achieve numerical targets
FY2014
FY2011 to FY2012
Further emphasis on
low-cost operations
Review the business structure and
business portfolio
Strengthen management for total optimization
of the Group’s operations
12/13 Medium-term Business Plan SG130 Phase II
Challenge
Sustainable Growth
10
(1) Further emphasis on low-cost operations
(2) Review the business structure and business portfolio
SG130 Phase II Three Basic Strategies
Bolstering corporate capabilities while solidifying sustainable growth
(3) Strengthen management for the group’s total optimization
11
Basic Strategies Strategic points
1. Further Emphasis on Low-cost Operations
Full-scale start up of Kobe-Konan Mill, upgrading and expanding own raw material wheat silos, construction of Chita Mill (provisional name) Reform the earnings structure (review products and marketing / sales promotion, improve product distribution and manufacturing efficiency) Bring new plants up to speed quickly, improve manufacturing efficiency, and ensure stable supplies of raw materials (rice flour, buckwheat mix, seasoned fried tofu, premix (overseas) and frozen food) Improve productivity in the pet food business
2. Review the Business Structure and Business Portfolio
Step up sales promotion targeting major wide-area users and strengthen efforts to cultivate local area users Increase sales of frozen pasta and ingredients for prepared meals (premixes, pasta etc.) Expand sales of premixes and pasta overseas Strengthen R&D capabilities Increase sales of functional food ingredients (ceramide, lignan, pamace etc.) Develop new businesses
3. Strengthen Management for the Group’s Total Optimization
Strategic points for SG130 Phase II
Boost earnings at domestic Group companies Support development of overseas Group companies
Improve earnings
Development of growth drivers
Selection and Concentration
Other
Flour Milling
Food
Other
Flour Milling
Food
Other
Flour Milling
Food
(1) Appropriate prices (2) Quality that exceeds
expectations (3) Product safety
Strengthening the link between marketing and product development
Group Strengths (1)
100
115
2009 2010 2011 2012 2013(Plan)
Increasing wheat flour sales volume Expanding production capacity (examples)
Matsuya Flour Mills Kaminokawa Plant (completed March 2011)
Mizuho Foods Plant (completed March 2011)
Buckwheat flour
Rice flour
550 tons / month → 1,000 tons / month
1,000 tons / year → 2,000 tons / year
12
A comprehensive cereal manufacturer An abundant lineup and high technical capabilities
Wheat Flour Corn flour Buckwheat flour Rice flour Soy beans
Traditional Nikko Soba (buckwheat noodle)
brand
Draw out the flavor and taste using production methods that take into
account application
Pursue the full potential of soybeans to deliver
genuine delight
The only manufacturer among
major flour milling companies
Japan’s first mechanical flour milling company
(FY2009 = 100)
2006 2012
2006 2012
2006 2012
2006 2012
13
Group Strengths (2)
Product Development Anticipating Costumer Needs
108
143
308
114
Food ingredients
Processed foods
Home-use frozen foods
Delicatessen
FY2012 sales indexed to FY2006 <Performance> <Outlook>
• New products and sales promotion ideas tailored to each user business format
• Develop new functional products • Source good quality, reasonably priced
food ingredients
• Roll out sales campaigns aimed at consumers
• Propose menu ideas to volume retailers and restaurants
• Develop new products that are functional and environmentally friendly
• Develop and propose new products • Boost sales to wholesalers and volume
retailers • Expand sales channels to include
home delivery and online shopping
• Raise productivity • Anticipate consumer trends • Propose menu ideas based on unique
ingredients • Secure high-quality workers
100
100
100
100
• Handy Pack Series a hit product • Higher sales to major users (bread makers,
delicatessens, restaurants etc.) • Growth in sales of mixes containing rice flour,
seasonings etc. • Sales growth overseas
• Increase in sales to volume retailers and delicatessens • Integrated product development bringing together
development, processing research and marketing teams • Unique hit products (Japanese deep-fried chicken mix
requiring minimal frying oil, Kin-no Pasta, flaxseed, Barilla etc.)
• Entry into the soy food market
• Oh’ my Premium Frozen Spaghetti Dishes hit products • Cod roe spaghetti for boxed meals , Korean pancakes
etc. hit products • Development and higher sales of own-brand products
for volume retailers
• Restructuring of production sites and related growth in orders
• Sales growth driven by new menu ideas
14
Group Strengths (3)
New businesses derived from the cereal business
Pet life care Human life care
Functional materials
Health food business Sport business
Pan-no-hana business (Manufacture and sales of wheat paste*)
*Pan-no-hana classes are not included
Pet food business
Functional materials business Pamace Ceramide Lignin
Milling Line and Wheat Silo are Completed at the Kobe-Konan Mill
Western Japan’s largest and cutting-edge production base in operation
NIPPN’s Kobe-Konan Mill Roll mill room Wheat silo
Ready for the age of global competition among companies
•Significant increase in productivity •Utilization of cutting-edge IT and full automation
•Special A Class certified silo (capacity of 23,000 tons)
•Energy-saving mill aligned with power condition •Highly efficient automatic high-rise warehouse with vibration controller
Strengthened competitiveness
• 80% increase in production capacity • Increased monthly production from
13,700 tons to 24,700 tons (September 2012) • Small packaging for premixes • Integrated and highly efficient mill ranging
from flour for business and home use to premixes for business use
•Japan’s first no-window mill to prevent the entry of foreign substances
•Explosion vents letting in light for safety and health purposes
•Vehicle control system and intrusion detection
Enhanced product availability Reinforced quality control and environmental measures
15
16
Toward Further Enhancing Productivity Upgrade and expand own raw material wheat silos
Kobe-Konan Mill Chiba Mill Fukuoka Mill Chita Mill (provisional name)
Storage capacity at our silos (Thousand tons)
October 2005 Chiba D Mill constructed
September 2012 Kobe-Konan C Mill constructed
Storage capacity set to increase by 100,000 tons by FY2016 (Chiba, Kobe, Fukuoka, Chita)
Planned Done
Benefits of building our own silos include storage fee income, suction fee income and reduction in raw material pick-up costs
Raw material wheat silos
• Increase storage capacity for raw material wheat (current capacity of 200,000 tons to 300,000 tons, an increase of 50%)
• Progressively commence upgrading and expanding on completion of preparations • Approximate investment of ¥10 billion • Chiba, Kobe-Konan (stage 2 construction), Fukuoka, and Chita Mills (provisional name)
Nagoya port
Kitahamamachi
Tokai City
Asakura
Chita City
155
Tokoname City
Construction site of a new mill
17
Toward Further Sustainable Growth
• The early commencement of construction currently under consideration
• Ideal location allowing direct berthing of large-scale vessels
Chita City, Aichi Prefecture
Nagoya port
Kitahamamachi
Tokai City
Asakura
Chita City
247
155
Nagoya Mill
Tokoname City
Nagoya City
Construction site of a new mill
Construction of the Chita Mill (provisional name)
18
Overseas Business (1)
NIPPN (Thailand) Co., Ltd.
100
150
2009 2010 2011 2012 2013(Plan)
(FY2009 = 100)
Premix sales volume in the Asia region
Nippon Flour Mills (Thailand) Ltd.
• Sales of premix and other products
• Increase in the number of R&D center personnel, increase in floor space
Expanding sales channels within Thailand and to surrounding
countries including Indonesia, Malaysia, and the Philippines
Nippon Flour Mills (Shanghai) Co., Ltd.
• Manufacture and sale of premix products
Tianjin Chuan Shun Foods., Ltd.
• Manufacture and sale of premix products
Asia – Thailand and China –
Tianjin
Shanghai
Bangkok
• Manufacture and sale of premix products • Acquired HACCP, HALAL, and other
certifications • Recovery from the Thai floods, operations
resumed in April 2012. Limited impact on earnings
19
Overseas Business (2) U.S.
• Manufacture and sale of pasta products
• Secured BRC quality and food safety certification
Expansion to the North American market
NIPPN California Inc.
Canada
Montana
Japan
California
Wheat field in Montana PASTA MONTANA, L.L.C.
North America
•Sales of foods and food ingredients in the North American market
0.0
50.0
100.0
150.0
1H FY2012 1H FY2013
Business Conditions of 1H FY2013 Net sales
48.6 (36%)
72.9 (54%)
13.5 (10%)
135.2
0.0
2.0
4.0
6.0
1H FY2012 1H FY2013
Operating income
1.1 (28%)
2.8 (71%)
0.0 (1%)
4.0
5.3 4.5
0.0
2.0
4.0
6.0
1H FY2012 1H FY2013
3.0 2.5
0.0
1.0
2.0
3.0
4.0
1H FY2012 1H FY2013
Ordinary income Net income (Billions of yen)
2.2 (45%)
2.7 (53%)
0.1 (2%)
5.0
48.9 (37%)
69.9 (53%)
13.6 (10%)
132.4
20
Other
Flour Milling
Food
(Billions of yen)
(Billions of yen) (Billions of yen)
Other
Flour Milling
Food
21
Sustainable Growth Trajectory Net sales Operating
income Ordinary income Net income
Commenced first phase of restructuring FY1994 158,294 956 1,600 951
FY1995 156,437 896 3,736 987 FY1996 169,596 1,486 5,988 2,747 FY1997 187,496 1,737 2,433 1,857
Completed second phase of restructuring FY1998 191,188 2,928 3,034 1,754
FY1999 188,328 3,164 2,784 1,736 Completed third phase of
restructuring FY2000 190,541 3,716 3,418 2,339
FY2001 194,062 4,058 3,361 2,351 Completed fourth phase of
restructuring FY2002 207,883 3,831 3,790 2,010
Medium-term Business Plan New Nippn Way
FY2003 201,389 5,059 4,469 2,430 FY2004 215,777 7,443 6,585 4,606 FY2005 224,360 8,158 7,605 4,737
05/07 Medium-term Business Plan FY2006 227,421 7,285 7,620 4,837 FY2007 239,575 6,329 6,578 4,146 FY2008 250,737 6,706 6,729 3,810
08/09 Medium-term Business Plan SG100
FY2009 276,797 10,682 9,736 4,829 FY2010 261,586 12,549 12,802 7,892
10/11 Medium-term Business Plan SG130
FY2011 252,139 10,567 10,827 6,026 FY2012 269,094 9,634 10,210 6,235
12/13 Medium-term Business PlanSG130 Phase II
FY2013 (Forecast) 273,000 9,500 10,000 6,300 FY2014
(Forecast) 300,000 13,000 13,000 7,800
(Millions of yen)
Steps to Strengthen the Group’s Financial Position
Asset efficiency focused on free cash flow
Capital expenditure to improve the operating
structure Upgrade and expand
our own wheat silos Construction of Chita Mill
(provisional name) etc.
• Maintain and improve credit ratings by strengthening the Group’s financial
position • Return profits to shareholders (including share buybacks)
Stable cash flow from
operations
¥20 billion / year
Sustained growth
Generate cash flow by
improving asset efficiency
Equity ratio of at least 50%
Create an optimum capital structure
Efficient allocation of resources
Efficient allocation of resources
22
23
Returning Profits to Shareholders
Trends in Dividends per Share
Payout ratio (consolidated)
27.7%
(Yen)
21.9% 24.9% 24.3% 28.5% 30.9% 21.2% 27.7% 32.0% 26.2%
7.0 7.0 7.0 7.0 8.0
10.0
12.0
6.0
10.0 10.0
FY2013 (Forecast)
■ NIPPN maintains a prudent approach toward its internal reserves taking into consideration the need to strengthen its corporate structure, prepare for future business development, and respond to changes in its operating environment.
■ Every effort is made to ensure the stable and continuous payment of dividends. ■ The payment of dividends is based on a thoroughgoing assessment of NIPPN
consolidated performance and financial position.
NIPPN Group CSR Activities Realize our corporate philosophy
Customer focused Increase customer satisfaction in product development and proposal stages
Quality management Ensure food safety and customer peace of mind Corporate governance Increase management speed and transparency Internal controls Strengthen compliance systems Risk management Aim to maximize profits and minimize losses Protecting the environments Help protect the global environment Contribute to society Contribute to dietary education, support UNICEF etc.
24
Increase corporate value
Implement CSR across the Group
Timely information disclosure
Promote SG130
Communication with stakeholders
Customers
Business partners
Shareholders/ investors
Employees
Local communities
Local environments
Code number: 2001
Nippon Flour Mills Co., Ltd. http://www.nippn.co.jp
November 15, 2012
Masayuki Kondo Managing Director
Overview of First Half of Fiscal Year ending March 31, 2013 (FY2013) Business Results and FY2013 Future Forecasts
26
1H FY2013 Consolidated Business Results Highlights
(1) Sales rose YoY, with sales growth in the Food business offsetting lower sales in the Flour Milling business
(2) Operating environment affected by factors such as deflation and weaker demand YoY in reaction to the spike in demand after the Great East Japan Earthquake
(3) Profits declined due to a weak performance by Group companies
(4) Full-year forecasts were revised in light of consolidated performance for the first half of the fiscal year
27
Consolidated Statements of Income
1H FY2012 1H FY2013 YoY
（2011.4～9） Vs. net sales （2012.4～9） Vs. net sales Change Change (%)
Net sales
Flour Milling 48,929 36.9% 48,629 36.0% (300) (0.6)％
Food 69,912 52.8% 72,985 54.0% 3,072 4.4％
Other 13,617 10.3% 13,596 10.0% (20) (0.2)％
Total 132,460 100.0% 135,211 100.0% 2,751 2.1％
Operating incom
e
Flour Milling 2,257 4.6% 1,117 2.3% (1,140) (50.5)％
Food 2,656 3.8% 2,858 3.9% 201 7.6％
Other 93 0.7% 56 0.4% (36) (39.8)％
Total 5,007 3.8% 4,032 3.0% (974) (19.5)％
Ordinary income 5,367 4.1% 4,555 3.4% (812) (15.1)％
Net income 3,072 2.3% 2,586 1.9% (485) (15.8)％
ROE 3.1% 2.5% (0.6)pt
EPS ¥18.42 ¥15.64 ¥(2.78)
(Millions of yen)
28
Analysis of Factors for Changes in Net Sales
(300)
3,072
(20)(1,000)
01,0002,0003,0004,000
Flour Milling Food Other
YoY
Changes in the volume of wheat flour sales (550) Increase in sales prices 350 Changes in wheat bran sales 50 Changes in buckwheat flour and other sales (150)
Changes in premix sales 500 Changes in frozen foods sales 1,900 Changes in delicatessen 1,650 Changes in pasta sales 50 Changes in other food sales (1,030)
Changes in engineering-related sales 200 Changes in pet foods sales (370) Changes in other sales 150
Factors for changes in net sales (overall increase of ¥2,751 million)
(Millions of yen)
29
201
(1,140)
(36)
(1,500)
(500)
500
Flour Milling Food Other
YoY
Analysis of Factors for Changes in Operating Income
Changes in sales volume (150) Fluctuations in wheat bran market conditions 100 Fluctuations in sales, manufacturing,
and other operating costs (1,090)
Changes in food sales 30 Fluctuations in manufacturing
and other operating costs 170
Changes in the volume of pet foods sales (35)
◆Factors for changes in operating income (overall decrease of ¥974 million)
(Millions of yen)
30
Analysis of Factors for Changes in Ordinary Income/ Net Income
1H FY2012 ordinary income
Changes in operating income
Foreign exchange gains
Interest income / dividend income
Interest expenses
Others
1H FY2013 ordinary income ¥(812) million 4,555
(974) 60
5,367
20
70
¥5,007 million → ¥4,032 million
10
1H FY2012 net income
Changes in ordinary income
Changes in extraordinary losses
Changes in Income taxes–deferred
Minority interests
1H FY2013 net income ¥(485) million 2,586
(812) 80
58 188
¥5,367 million → ¥4,555 million
3,072
◆Factors for changes in ordinary income
◆Factors for changes in net income
(Millions of yen)
31
Consolidated Balance Sheets (Assets)
FY2012 1H FY2013 Change
Factors for changes (As of
Mar. 31, 2012) Component
ratio (As of
Sep. 30, 2012) Component
ratio
Current assets 84,931 41.9% 80,287 40.5% (4,644) (1.4)pt
Tangible assets 74,223 36.6% 77,438 39.1% 3,214 2.5pt
Intangible assets 1,690 0.8% 1,588 0.8% (102) 0.0pt
Investments and other assets 42,059 20.7% 38,821 19.6% (3,238) (1.1)pt
Decline in valuation gains on available-for-sale securities
Fixed assets 117,973 58.1% 117,848 59.5% (125) 1.4pt
Total assets 202,904 100.0% 198,135 100.0% (4,769) -
(Millions of yen)
32
Consolidated Balance Sheets (Liabilities and Net Assets)
FY2012 1H FY2013 Change
Factors for changes (As of
Mar. 31, 2012) Component
ratio (As of
Sep. 30, 2012) Component
ratio
Current liabilities 63,367 31.2% 60,909 30.7% (2,458) (0.5)pt
Long-term liabilities 35,086 17.3% 33,325 16.8% (1,761) (0.5)pt
Total liabilities 98,453 48.5% 94,234 47.6% (4,219) (0.9)pt
Shareholders’ equity
Common stock 12,240 6.0% 12,240 6.2% - 0.2pt
Additional capital surplus 10,666 5.3% 10,666 5.4% 0 0.1pt
Retained earnings 72,855 35.9% 74,281 37.5% 1,426 1.6pt
Treasury stock, at cost (1,577) (0.8)% (1,577) (0.8)% 0 -
Accumulated other comprehensive income 8,085 4.0% 6,536 3.3% (1,549) (0.7)pt
Decline in valuation gains on available-for-sale securities
Minority interests 2,179 1.1% 1,753 0.9% (426) (0.2)pt
Total net assets 104,450 51.5% 103,900 52.4% (550) 0.9pt
Total liabilities and net assets 202,904 100.0% 198,135 100.0% (4,769) -
(Millions of yen)
Consolidated Statements of Cash Flows
• Major factors contributing to changes in cash flows from operating activities = Decrease of inventories • Major factors contributing to changes in cash flows from investing activities = Capital investment • Major factors contributing to changes in cash flows from financial activities = Redemption of commercial paper
1H FY2012 1H FY2013 Change
Cash flows from operating activities (1,644) 10,389 12,033
Cash flows from investing activities (5,561) (6,422) (861)
Cash flows from financial activities (2,053) (3,967) (1,914) Effect of exchange rate changes on cash and cash equivalents (16) 18 34
Increase (decrease) in cash and cash equivalents (9,275) 18 9,293
Cash and cash equivalents at beginning of the year 21,956 9,848 (12,108)
Cash and cash equivalents at end of the period 12,681 9,867 (2,814)
(Millions of yen)
33
34
FY2013 Forecasts
FY2012 FY2013 (Forecast) YoY
Result Vs. net sales (%) Forecast Vs. net
sales (%) Change Change
(%)
Net sales
Flour Milling 100,745 37.4% 98,000 35.9% (2,745) (2.7)%
Food 140,521 52.2% 147,000 53.8% 6,479 4.6%
Other 27,827 10.3% 28,000 10.3% 173 0.6%
Total 269,094 100.0% 273,000 100.0% 3,906 1.5%
Operating incom
e
Flour Milling 3,807 3.8% 2,900 3.0% (907) (23.8)%
Food 5,466 3.9% 6,300 4.3% 834 15.3%
Others 361 1.3% 300 1.1% (61) -
Total 9,634 3.6% 9,500 3.8% (134) (1.4)%
Ordinary income 10,210 3.8% 10,000 4.0% (210) (2.1)%
Net income 6,235 2.3% 6,300 2.4% 65 1.0%
ROE 6.2% 6.1% (0.1)pt
EPS ¥37.46 ¥38.08 ¥0.62
(Millions of yen)
35
Analysis of Factors for Changes in Net Sales Forecasts
(2,745)
6,479
173
(3,000)
2,000
7,000
Flour Milling Food Other
YoY
Sales volume 1,250 Sales price (4,000)
Sales volume 150 Sales volume 6,500
0
(Millions of yen) ◆Factors for changes in net sales forecasts (overall increase of ¥3,906 million)
36
Analysis of Factors for Changes in Operating Income Forecasts
(61)
(907)
834
(1,000)
(500)
0
500
1,000
Flour Milling Food Other
YoY
Changes in costs, etc. (1,150) Sales volume 250
Sales volume (50) Changes in costs, etc. 450 Sales volume 380
(Millions of yen) ◆Factors for changes in net sales forecasts (overall decrease of ¥134 million)
37
FY2012 ordinary income
Changes in operating income
Interest income / dividend income
Foreign exchange gains
Others
FY2013 ordinary income ¥(210) million
FY2012 net income
Changes in ordinary income
FY2013 net income +¥65 million
¥10,210 million→ ¥10,000 million
10,210
10,000
100
(134)
50
(230)
(210)
275
6,235
6,300
Analysis of Factors for Changes in Ordinary Income/ Net income Forecasts
◆Factors for changes in ordinary income forecasts
◆Factors for changes in net income forecasts
¥9,634 million→ ¥9,500 million
(Millions of yen)
Decrease in extraordinary losses, income taxes, etc.
This document includes details of the Company’s current plans and performance forecasts. These future plans and forecast figures are based on information currently available as well as the Company’s plans and projections. Actual results and performance may differ materially from these plans and forecast figures due to a variety of conditions and factors. This document does not represent a definitive commitment or guarantee by the Company to achieve stated plans and forecast figures.
Investor Relations OfficeAccounting and Finance Div. Nippon Flour Mills Co., Ltd.
TEL 03(3350)2356FAX 03(3356)5176
38
Inquiries
