Net sales saw a year-on-year increase of 17.8%, or ¥179.3 billion, to ¥1,185.9 billion. By region, sales in Japan grew 20.9%, or ¥96.2 billion, to ¥556.6 billion, as the consolidation of AGF contributed to a substantial gain in sales of coffee products. Overseas sales rose significantly, up 15.2%, or ¥83.1 billion, to ¥629.3 billion. This rise was attributed primarily to increased sales of frozen foods, which included net sales at Windsor, seasonings and processed foods, and amino acids. By specific geographical region overseas, sales increased 5.4%, to ¥274.5 billion, in Asia, and 40.3%, to ¥245.9 billion, in the Americas, while sales fell 1.4%, to ¥108.8 billion, in Europe. In addition, the foreign sales ratio was 53.1%, compared to 54.3% in the previous fiscal year.

Cost of Sales/Selling, General and Administrative Expenses

Cost of sales stood at ¥768.8 billion, a year-on-year increase of 16.6%, or ¥109.3 billion, reflecting the growth in net sales. The ratio of the cost of sales to net sales edged up 0.7 percentage point, to 64.8%, mainly due to the consolidation of AGF. Selling, general and administrative expenses increased 19.6%, or ¥53.4 billion, to ¥326.0 billion, as continued efforts to reduce sales promotion expenses were offset by the impact of an increase in expenses associated with consolidated subsidiaries.

Operating Income

Operating income increased 22.2%, or ¥16.5 billion, to a record-high ¥91.0 billion. By region, operating income in Japan rose 29.6%, to ¥38.4 billion, while operating income from overseas operations increased 17.3%, to ¥52.6 billion. Overall operating income from operations in Japan rose significantly due to the contributions from coffee products as well as seasonings and processed foods, which offset a substantial decrease in income from pharmaceuticals. Overseas profits saw a substantial increase overall, thanks to the contributions from seasonings and processed foods in addition to frozen foods, which combined offset a sharp decline in profits in the animal nutrition business. By specific geographical region overseas, operating income increased 22.9%, to ¥37.4 billion, in Asia; 0.7%, to ¥11.7 billion, in the Americas; and 24.6%, to ¥3.4 billion, in Europe. Furthermore, the overseas operating income ratio was 57.8%, compared to 60.2% in the previous fiscal year.

Non-Operating Income (Expenses)

The difference between non-operating income and non-operating expenses was net income of ¥3.2 billion, a decrease of ¥5.0 billion from net income of ¥8.2 billion in the previous fiscal year. The main factors in this decrease were a decline in earnings of non-consolidated subsidiaries and affiliates and a reduction in gains from foreign exchange rates.

Ordinary Income

Ordinary income increased 13.9%, or ¥11.5 billion, to a record-high ¥94.3 billion.

Extraordinary Gains

Extraordinary gains in the fiscal year under review totaled ¥45.3 billion, compared with ¥12.8 billion in the previous fiscal year. These extraordinary gains consisted primarily of a ¥24.8 billion gain on the sale of the Company’s entire equity holdings in NissinAjinomoto Alimentos Ltda. and an ¥18.0 billion gain on step acquisitions of additional shares of AGF.

Extraordinary Losses

Extraordinary losses in the fiscal year under review came to ¥39.3 billion, up from ¥16.6 billion in the previous fiscal year. The main losses were a ¥16.6 billion loss incurred from restructuring expenses in the pharmaceutical business, a ¥6.9 billion loss on liquidation of subsidiaries related to the sale of shares of a French subsidiary engaged in the production and sale of sweeteners, and a ¥7.4 billion impairment loss (¥10.4 billion in the previous fiscal year) primarily on the manufacturing facilities of overseas subsidiaries. The main impairment items in the fiscal year under review were ¥3.3 billion for manufacturing facilities for the animal nutrition business in Thailand and ¥2.0 billion for seasoning manufacturing facilities in China.

Profit Attributable to Owners of the Parent

Profit attributable to owners of the parent for the fiscal year under review rose 36.8%, or ¥17.0 billion, to ¥63.5 billion. Earnings per share for the fiscal year were ¥108.14, up from ¥78.54 for the previous fiscal year.

Costs, Expenses and Income as Percentages of Net Sales

Note: Change represents change in percentage points from the previous year.