NISSIN FOODS GROUP

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Segment Results (for the Six Months Ended September 30, 2018)

The Nissin Foods Group aspires to create and develop market-leading brands in our chosen food product categories for markets around the world.

JAPAN

Nissin Food Products

Sales of NISSIN FOOD PRODUCTS Co., Ltd. increased year on year with a rise in sales of cup-type noodle and bag-type noodle products. In cup-type noodles, sales of the CUP NOODLE brand significantly increased with the launch of NISSIN FOOD 60th ANNIVERSARY CUP NOODLE to commemorate the 60th anniversary of NISSIN FOOD PRODUCTS Co., Ltd.. Sales of the NISSIN-NO-DONBEI series and the NISSIN YAKISOBA U.F.O. series also remained strong partly due to the effect of launching new products. In bag-type noodles, CHICKEN RAMEN AKUMA NO KIMU-RA, which benefited from a powerful TV commercial and excellent palatability became a popular topic of conversation on social media and online news sites, contributed to sales of the CHICKEN RAMEN brand, which celebrated the 60th anniversary of its release, and sales of the OWAN DE TABERU series, which was released in September 2017, remained strong. As a result, these products contributed to the company’s sales.

Consequently, Revenue was ¥ 89,550 million (+1.0%) and operating profit was ¥ 12,267 million (+2.5%) in this reportable segment.

Myojo Foods

Looking at sales of MYOJO FOODS Co., Ltd., sales of the MYOJO IPPEICHAN YOMISE NO YAKISOBA series, a core cup-type noodles product, remained solid, and sales of the MYOJO UMADASHIYA series also grew. As a result, the company registered an increase in sales. Sales of bag-type noodles also increased year on year thanks to firm sales of the MYOJO CHUKAZANMAI series.

Consequently, Revenue was ¥ 16,008 million (+7.0%) and operating profit was ¥ 1,257 million (+15.2%) in this reportable segment.

Chilled and frozen foods

At NISSIN CHILLED FOODS Co., Ltd., sales of the FRY PAN HITOTSU DE series whose easy preparation has proven popular rose, although the market conditions for chilled noodles were lackluster. Meanwhile, sales of fried noodle products remained strong, mainly helped by the FUTOMEN YAKISOBA series, a core product. As a result, the company posted a year-on-year gain in sales. However, overall profit declined mainly due to rises in raw material and logistics costs.

NISSIN FROZEN FOODS Co., Ltd. saw steady sales, mainly in consumer products. Sales of Chinese-type noodles without soup such as REITO NISSIN CHUKA SHIRUNASHI TAN TAN MEN increased, and sales of Yakisoba such as NISSIN CHUKA SHANGHAI YAKISOBA OMORI also grew. In addition, NISSIN SPA OH PREMIUM continued to be strong in pasta products with precooked ingredients. As a result, the company posted a year-on-year increase in sales.

Consequently, Revenue was ¥ 27,671 million (+2.8%) and operating profit was ¥ 1,161 million (+1.6%) in this reportable segment.

OVERSEAS

The Americas

The Americas is working to strengthen the proposal of value-added products to create new demand and profitability by enhancing cost competitiveness, in addition to empowering existing products.

Sales of NISSIN LAMEN, a core product in Brazil, remained firm and sales of CUP NOODLES steadily increased as well. Moreover, we are moving forward with price revisions to improve profitability in the United States. Nonetheless, revenue was down due to the impact of foreign exchange on the overall segment. Profit declined in the Americas segment given the deteriorated external environment in the United States, such as the rising cost of principal raw materials and higher personnel expenses, and the persistently high cost of logistics.

Consequently, Revenue was ¥ 29,270 million (-1.2%) and operating loss was ¥ 270 million in this reportable segment.

China

In China, the instant noodles market has bottomed out in mainland China, and the market for high-end products is expanding. The Group has taken steps to expand its geographical sales areas and strengthen its CUP NOODLES brand. In this environment, sales increased year on year thanks to strong sales of cup-type noodles, mainly in the CUP NOODLES brand. Profit declined year on year due to an increase in depreciation and IPO related personnel costs.

Consequently, Revenue was ¥ 20,342 million (+5.4%) and operating profit was ¥ 1,743 million (-4.9%) in this reportable segment.

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