1

First Half FY3/2015Financial Results Presentation

November 18, 2014The Nisshin OilliO Group, Ltd.

2

Takao ImamuraPresident and Representative Director

・Summary of Financial Results for First Half FY3/2015

・Medium-Term Management Plan for FY3/2015-FY3/2017

3

Summary of Financial Results for First Half FY3/2015 and Consolidated Financial Forecasts for FY3/2015

4

Consolidated Financial Results for First Half FY3/2015

2Q FY3/2015 2Q FY3/2014 Change (%)

Net Sales 158,216 162,421 ‒2.6%Operating Income 3,085 2,015 +53.1%Ordinary Income 3,160 2,107 +50.0%

Net Income 1,896 830 +128.4%

(Million yen)

5

Oils and Meals Business Processed Oils and Fats Business

1,660 1,943

111,239

102,170

0

500

1,000

1,500

2,000

2,500

3,000

50,000

70,000

90,000

110,000

2Q FY3/2014 2Q FY3/2015130

1,035

39,030

43,386

0

500

1,000

1,500

2,000

10,000

20,000

30,000

40,000

50,000

2Q FY3/2014 2Q FY3/2015

[Oils and Meals Business]• The soy bean market has trended downward since July, following highs at around the US$15/Bu level up to June. The rapeseed market also declined from July, after an uptick through May. In domestic oils and fats, although there was a reactionary decline in response to a last-minute rush in demand prior to the consumption tax hike, sales volume rose versus the previous year. However, selling prices were down from a year earlier due to sluggish market trends. COFCO Nisshin (Dalian) Co., Ltd. (former Dalian Nisshin Oil Mills, Ltd.) became an equity-method affiliate from FY3/2015.[Processed Oils and Fats Business]In domestic processed oils and fats, sales were strong, mainly for shortening and specialty fats. ISF posted a substantial rise in profit year-on-year reflecting a shift in sales composition to high value-added products for the European market.

Operating income (RHS)Net sales (LHS)

(Million yen) (Million yen)

Earnings Results by Business Segment (1)

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Fine Chemicals Business Healthy Foods Business

[Fine Chemicals Business]In raw materials for cosmetics, net sales and profit rose year-on-year owing to brisk domestic sales. In the medium-chain triglycerides business, profit was down reflecting a rise in the cost of sales due to a weak yen and soaring raw material costs. IQL posted a rise in net sales and operating income versus the previous year owing brisk sales in Spain.[Healthy Foods Business]In dressings and mayonnaise-type dressings, sales volume and net sales dropped from a year earlier due to a reactionary decline in response to a last-minute rush in demand prior to the consumption tax hike and a decrease in demand owing to soaring vegetable prices, but operating income rose. In foods for specified health uses (FOSHU) and in foods for people receiving medical treatment, net sales and profit declined but net sales and profit rose for foods for the elderly and for those in nursing care.

303

235

6,763 7,386

0

100

200

300

400

0

2,000

4,000

6,000

8,000

2Q FY3/2014 2Q FY3/2015

-23 -27

3,702 3,551

-100

0

0

2,000

4,000

2Q FY3/2014 2Q FY3/2015

Earnings Results by Business Segment (2)

Operating income (RHS)Net sales (LHS)

(Million yen) (Million yen)

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(Million yen)

FY3/2015 Forecasts

FY3/2014 Results Change (%)

Net Sales 326,000 337,148 –3.3%Operating Income 6,400 5,103 +25.4%Ordinary Income 6,000 5,058 +18.6%

Net Income 2,800 2,276 +23.0%

FY3/2015 Consolidated Forecasts

Medium-Term Management Plan for FY3/2015-FY3/2017Progress Report

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9

Domestic Processed Oils and Fats

Further cultivate the domestic specialty fats market Full-fledged entry into the retail chains and retail market Enter into and expand sales to major companies in bread manufacturing

market Increase sales volume and net sales by actively making proposals to

existing and new customersDaito Cacao Co., Ltd and T.&C. Manufacturing Company Pte

New business development via entry into East Asia (Daito Cacao Co., Ltd.) Select partners and look into potential bases and other issues for

business startup in Asia Strengthen sales in countries throughout Asia, focusing on the impact to

markets after the enactment of TPP agreements (T&C) Increase business transactions by expanding manufacturing lines and

fortifying alliances with overseas dairy product manufacturers

We will seek to achieve an ordinary income of ¥3 billion through expansion of the domestic processed oils and fats business, increase of the earnings of

Intercontinental Specialty Fats Sdn. Bhd., and promotion of our Asian strategy

Processed Oils and Fats Business (1)

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ISF

Sales expansion and stable supplies to business partners in Europe By building a proposal-based support system that integrates sales,

production, and development functions, we are successfully securing contracts in line with plans

Implement measures to stabilize supplies from RSPO raw material suppliers

Expand sales of high value added products, including CBE Implement development and proposals to respond to customers’ needs Move forward with supplier development to ensure stable procurement

of raw materials

Strengthen product strategies through ties with NGRC (Nisshin Global Research Center); develop new customers; promote Asia strategy Cultivate new customers in Asia and carry out proposals to expand

sales

Processed Oils and Fats Business (2)

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We will seek to build a structure that reduces costs by ¥3 billion in fiscal 2015compared with fiscal 2012 through enforcement of the production and distribution

optimization plan for flexible response to the environment

Establish a system that achieves a reasonable balance between supply and

demand: ¥300 millionCentral management of information and

optimization of inventories and transport for companywide production / sale

Maximize benefit from renewal of Yokohama Isogo Plant: ¥600 million

Reduce costs by establishing new warehouse, transferring gift line, and

fortifying filling facilities

Renew production / logistics functionsat West Japan bases: ¥200 million

Reduce costs by strengthening storage andfilling functions in the West Japan area,

mainly Sakai Plant

Measures to reduce transport costs,including joint delivery: ¥500 million

Reduce product transport costs throughmeasures such as the review of agreements

for shipments from plants

Organize functions and roles of subsidiaries:¥300 million

Dynamic cost reductions by reviewing outsourced operations with subsidiaries

Strengthen comprehensive cost competitivestrength in production: ¥1.1 billion

Continue to reduce cost extending fromproduction processes to materials

procurement

Reduce Production / Distribution Costs (1)

Measures:• Reduce external warehouse costs by adequately adjusting supply-demand balance• Reduce number of packaged products transferred between sites• Reduce external warehouse and distribution costs by starting up a new distribution

center• Reduce cost of transferring crude oil between sites• Expansion of production facilities that utilize the pressurized extraction technique in

the extraction line, etc. 12

（単位：百万円）

1,163

1,804 1,824

3,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

FY3/2014 Results FY3/2015 Plan FY3/2015 Forecast FY3/2016 Plan

Implement reductions in line with plans to achieve our cost-cut goal of ¥3.0 billion

(Million yen)

Reduce Production / Distribution Costs (2)

Regarding strategies, policies, themes and other issues related to R&D, select, focus, and fortify resource allocation, research promotion, human resources training, and other areas for R&D overall

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Research that leads new trends in the structural oils and fats, and nutritional functions

Create new value (food and functional materials) by using fat nutrient and structural oils and fats technologies to extract the “power” of medium-chain triglyceride, and use it in the field of preventive medicine

Domains in which we plan to prioritize new products/technologiesImprovement of brain functions, new industrial materials, preventive medicine, etc.

Structural reform for R&D management

New research policies to support growth strategies

Construction of new R&D facilitiesTransfer the Central Research Laboratory to the R&D facilities to be newly built at the Yokohama Isogo Plant

• Integrate R&D and production technology functions• Position at R&D hub, including fortification of alliances with headquarters

and NGRC• Strengthen presentation functions

Strengthen Product and Technology Development

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Nobuyuki Watanabe

General Manager, Financial Department

Summary of Financial Resultsfor First Half FY3/2015

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Summary of Consolidated Financial Results for First Half FY3/2015

(Million yen)

* Figures f or raw materials and f oreign exchange rates are based on Nisshin OilliO estimates.

-193 -27%Foreign Exchange Rate (JPY/USD) 102 93 +9 +11%

Rapeseed Unit Price (USD/t) 528 721

Change Change (%)

Soybean Unit Price (USD/t) 622 628 -6 -1%

Raw Material Prices & ForeignExchange Rates 2Q FY3/2015 2Q FY3/2014

+1,065 +128.4%

+1,053Ordinary Income

Net Income

3,1601,896

2,107

830

+50.0%

Change (%)

-2.6%Net Sales

2Q FY3/2015

158,216

2Q FY3/2014

162,421+1,069 +53.1%

-4,205Operating Income 3,085 2,015

500

700

900

1,100

1,300

1,500

1,700

1,900

￠/Bu

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Source: Bloomberg

7/9 1,630.00

8/15 1,271.00

9/29 905.50

5/22 1,536.75

Soybean Market Price Trends(Chicago Board of Trade)

300

400

500

600

700

800

CAD/t

8/6 472.40

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Source: Bloomberg

5/14 656.20

9/22 388.00

5/13 511.20

Rapeseed Market Price Trends(Winnipeg Commodity Exchange)

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

4,400

MYR/t

18

8/27 2,502

7/30 2,220

8/29 1,922

4/17 2,745

Source: Bloomberg

Palm Oil Market Price Trends (Malaysia)

70

75

80

85

90

95

100

105

110

115

120

125

JPY/USD

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9/30 109.85

5/21 100.82

5/22 103.74

4/2 92.57

Source: Bloomberg

Foreign Exchange Rate Trends

50.00

55.00

60.00

65.00

70.00

75.00%

20Source: CBT market (soybean meal, soybean oil)

Meal Value Trends

3,400

4,100

4,800

3,300

2,800

3,400

3,800 3,850

4,150

3,750

151

219

224

153

187.5

217.5 218.0

233.0

155

179

229

249

219

140 148

200.5

215.5 216.0 210.5

130

150

170

190

210

230

250

270

290

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000JPY/kgJPY/18 liter drum

大豆白絞斗缶 大豆白絞バルク 菜種白絞バルク

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Nikkei Market Price Trends: Oils

Soybean oil (18 liter drum) Soybean oil (bulk) Rapeseed oil (bulk)

Source: Nikkei,inc.

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Source: The Daily “Yushitokuhou”

46,500

62,000

70,000

45,000

60,000

45,000

48,000

38,000

58,000

61,000

67,000

69,500

32,000

43,000

40,000

31,000

37,000

31,500 32,800

25,300

40,500

49,000 51,000 68.8

77.9

61.5

57.1

69.2

58.2

70.0

71.7

69.7

73.9

50.0

55.0

60.0

65.0

70.0

75.0

20,000

30,000

40,000

50,000

60,000

70,000

%JPY/t

大豆粕 菜種粕 菜種粕ﾚｼｵ

Source: The Daily “Yushitokuhou”

Market Price Trends: Meals

Soybean meal

Rapeseed meal

Rapeseed meal ratio

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Consolidated Results by Business Segments(Billion yen)

Consolidated total 158.2 3.0 162.4 2.0 -2.6% +53.1%

Oils and Meals 103.2 1.9 112.3 1.6 -8.2% +17.1%Processed Oils and Fats 45.8 1.0 41.2 0.1 +11.2% +695.5%

Fine Chemicals 7.6 0.2 6.8 0.3 +11.8% -22.5%Healthy Foods 3.5 -0.0 3.7 -0.0 -4.2% -

Other 2.7 0.1 2.6 0.2 +2.2% -15.6%Elimination/Corporate -4.7 -0.2 -4.4 -0.2

Percentage of Overseas Sales 21.7% 21.8% -0.1%

2Q FY3/2015 2Q FY3/2014 Change

2Q FY3/2015 2Q FY3/2014 Change (%)

Net SalesOperating

Income(Loss)

Net SalesOperating

Income(Loss)

Net SalesOperating

Income(Loss)

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Major Raw Material Prices Trends

200

300

400

500

600

700

800

25,000

35,000

45,000

55,000

65,000

75,000

85,000

USD/tJPY/t大豆（¥/ｔ） 菜種（¥/ｔ） 大豆（$/ｔ） 菜種（$/ｔ）Soybean (JPY/t) Rapeseed (JPY/t) Soybean (USD/t) Rapeseed (USD/t)

0.8

1.0

1.2

1.4

1.6

油脂主要商品販売単価（¥/kg）

25

Unit Selling Price TrendsTaking Apr. – Sep. 2007 as baseline of 1.0

Unit price of major oils & fats products (JPY/kg)

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Factors Impacting Operating Income (Year on Year)First Half FY3/2014

Operating Income: ¥2.05 billion

Up ¥1.05 billion

(Billion yen)

First Half FY3/2015Operating Income: ¥3.1 billion

Raw Material Costs Soybean +0.2Rapeseed +7.55Foreign Exchange -4.15

Subｔotal +3.60

Unit Price of Meal +2.60Sales of Oils and Fats -6.15

Total +0.05

Total -0.05

Healthy Foods, Fine Chemicals Businesses(including subsidiaries)

+1.30

-0.35Domestic Subsidiaries (Other) ±0.0

Total +0.95

Overseas Subsidiaries(Oils and Meals, Processed Oils and Fats Businesses)Domestic Subsidiaries(Oils and Meals, Processed Oils and Fats Businesses)

Other SG&A +0.3Manufacturing Costs, Other -0.2

Total +0.1

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Consolidated Balance Sheet:Changes from End of Previous Fiscal Year

(Billion yen) (Billion yen)

Total assets

Current assets Total liabilitiesCash and deposits

Interest-bearing debt

Inventories Income taxes payableShort-term loans receivable OtherOther

Fixed assets Total net assetsProperty, plant and equipment Retained earningsIntangible assets Treasury stockInvestments and other assets Minority interests

Deferred assetsCost of issuing bonds +0

-0.6 -0+0.8 +0.2

+2.0

0 +0

106.6 +0.1 123.1 3.7+0.0 +1.5

-2.3+0.9

-5.4

+1.2 +7.9

+4.1 +0.1

+4.0

130.0 +3.8 113.7 0.2

Notes and accounts receivable-trade

Notes and accounts payable-trade

Accumulated other comprehensiveincome

Total liabilities and net assets236.8 +4.0 236.8

-0.5

-1.9

36 3328

4338

30.4

40.8

6.64.5

5.3

4.1

4.4

3.3

3.48.8

13.4 21.5

1920.7

16.6

1451.5 51

54.9

66.163.2

50.3

58.2

0

100

200

300

400

500

600

700

2009年3月期 2010年3月期 2011年3月期 2012年3月期 2013年3月期 2014年3月期 2014年9月期

日清ｵｲﾘｵｸﾞﾙｰﾌﾟ 国内子会社 海外子会社 有利子負債

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Consolidated Interest-Bearing Debt(Billion yen)

70

60

50

40

30

20

10

0FY3/2009 FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 2Q FY3/2015

The Nissin OilliO Group Domestic Subsidiaries Overseas Subsidiaries Interest-Bearing

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Consolidated Financial Forecasts for FY3/2015

(Million yen)

Note: *Figures f or raw materials prices and f oreign exchange rates are based on Nisshin OilliO estimates.

Year on Year2Q 2QFY3/2015 FY3/2014

-3.3%

Operating Income 6,400 3,085 5,103 2,015 +1,297 +25.4%

Net Sales 326,000 158,216 337,148 162,421 -11,148

+18.6%

Net Income 2,800 1,896 2,276 830 +524 +23.0%

Ordinary Income 6,000 3,160 5,058 2,107 +942

Soybean Unit Price (USD/t) 565 617 -52 -8%

Raw Materials Prices &Foreign Exchange Rates FY3/2015 FY3/2014 Change Change (%)

Foreign Exchange Rate (JPY/USD) 104 95 +9 +10%Rapeseed Unit Price (USD/t) 520 668 -148 -22%

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Forecasts for Factors Impacting Operating Income (FY3/2015 year on year)

FY3/2014Operating income: ¥5.1 billion

Up ¥1.3 billion

(Billion yen)

FY3/2015 (forecast)Operating income : ¥6.4 billion

Raw Material Costs Soybean +3.8Rapeseed +12.4Foreign Exchange -7.25

Subtotal +8.95

Unit Price of Meal -0.9Sales of Oils and Fats -8.1

Total -0.05

Total ±0

Healthy Foods, Fine Chemicals Businesses(including subsidiaries)

+1.2

-1.0Domestic Subsidiaries (Other) ±0

Total +0.2

Overseas Subsidiaries(Oils and Meals, Processed Oils and Fats Businesses)Domestic Subsidiaries(Oils and Meals, Processed Oils and Fats Businesses)

Other SG&A +0.6Manufacturing Costs, Other +0.55

Total +1.15