Annual Review 2019

The Nisshin OilliO Group, Ltd.

The Nisshin OilliO Group, Ltd. Annual Review 2019 2

* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies

Globalization Technological Innovation Strategic Marketing

* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies* Health Science Business: This business contributes to society by providing consumers with “the power of health and energy” that are essential at each stage of life through wellness recommendations developed using proprietary technologies

Globally expand the Health Science Business, which contributes to society through “the power of health and energy”

Increase investment to accelerate globalization and strengthen cooperation between sites

Deploy strategies that rally the group’s comprehensive competencies in the edible oils for commercial-use and edible oils for food processing domains

Strengthen the OilliO brand and create a new market in the household-use domain

Strengthen our marketing capability to create new additional value

Structure reforms for oil milling and fortification of production platforms

ESG managementReinforcement

Growth strategies

Medium-Term Management Plan

Corporate Vision & Basic Policies

Basic Policies

The Nisshin OilliO Group looks to produce new value and create markets by utilizing the premium technologies it has forged over its 110-year history to address the needs of our customers and to find solutions for the issues they face.

The Nisshin OilliO Group maximizes corporate value through contributions to good dietary environment and good health.

Carry on business structure reforms while shifting focus to growth trajectory.

Corporate Vision

The Nisshin OilliO Group, Ltd. Annual Review 2019 3

ESG management

Structure reforms for oil milling and fortification of production platforms

Acquire new business domains that produce synergies with the Oil and Fat Business

Crossing over from structure reforms to growth trajectory

Expand Health Science Business: Sales growth rate

Acceleration of globalization: Overseas sales growth rate

Accelerate growth in the edible oils for commercial-use and edible oils for food processing domains: Gross profit growth in the edible oils for commercial-use and edible oils for food processing domains

Enhance profit margins on the household-use products: Profit growth rate in household-use products

Improve value of MCT: Recognition rate of MCT

KPIs for growth strategy

Operating income : ¥13.0 billion-plusROE : 7%-plusEPS growth : 8% (annual average)

Operating cash flow : ¥50.0 billion (cumulative)

Medium-Term Management Plan

We will generate operating cash flow of ¥50.0 billion over four years and will allocate the funds to investments in growth (capital expenditure and business investments, including M&As).

Our basic policy is to maintain a payout ratio of 30% while continuing stable dividend payments.

Focusing on the total return ratio and improvement in capital efficiency, we plan to flexibly buy back our own shares, taking into account market factors, including the stock price level.

The Nisshin OilliO Group will pursue the enhancement of corporate value while maintaining an optimal balance between capital efficiency with an emphasis on ROE and financial soundness.

Financial Strategy

Operating income : ¥10.2 billion ROE : 6.3%

2018

2019

2020

2017

billion-plus

Vision for the futureROE : 10%-plus

■ Create new value for Oil and FatBusiness and expand business domains

■Enhance presence as a global company

Acquire new business domains

Crossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growthCrossing over from structure reforms to growth trajectorytrajectorytrajectorytrajectorytrajectorytrajectorytrajectorytrajectorytrajectorytrajectorytrajectorytrajectorytrajectory

Expand Health Science Business:

Accelerate growth in the edible oils for commercial-use and edible oils for food processing domains:Gross profit growth in the edible oils for commercial-use and edible

Enhance profit margins on the household-use products:Profit growth rate in household-use products

EPS growth : 8% (annual average)

Operating cash flow : ¥50.0 billion (cumulative)

2018

2019

2020

2017

(cumulative)

2016

Targets Aiming for future growth, we target operating income of ¥13.0 billion-plus and an ROE of 7%-plus in fiscal 2020

The Nisshin OilliO Group, Ltd. Annual Review 2019 4Progress Report on Medium-Term Management Plan

Stimulate the market for household-use products and expand sales for oil for topping

The group continued communication activities to propose new ways of usage, such as oil for topping, and stimulate the market for household-use products by creating new markets

Market for olive oil continues to expand and sales for fiscal 2018 exceeded canola oil, making it the largest category

・Lead the expansion of the olive oil market, which has become the largest category ・Expand sales in high value-added categories, centered on flaxseed oil ・Capture profits through structural reforms of general-use edible oils and formation of

prices that properly reflect the value of oils and fats

Large-volume Flaxseed OilFlaxseed oil has gradually become a mainstay oil for daily use to keep healthy. To improve utility for frequent users, we launched sales of flaxseed oil in a new large-volume container.

NEW

New Product Added to the Fresh-keep Oil Series LineupA high-end BOSCO product has been added to the Fresh-keep Oil Series. It is a special BOSCO oil that has a fresh, flowery aroma and a spiciness similar to herbs.

NEW

Oil for Topping Market Scale

40.0Billion

yen

20.0

2013 2017 2018 2019Forecast

2020Forecast

CAGR11%

* Estimated by the Nisshin OilliO Group based on research by SCI (nationwide consumer panel survey) at

INTAGE Inc. and Shoku MAP Inc.

Japanese Market for Oil for Household Use

150.0Billion

yen

100.0

50.0

0FY3/2008 FY3/2014 FY3/2019

Sesame oil

Canola Oil

Olive oil

Value addedcategory

Standard oilcategory

* Compiled based on SCI at INTAGE Inc.

Points for Fiscal2019

The Nisshin OilliO Group, Ltd. Annual Review 2019 5

Japan・Nisshin OilliO Group, Ltd.Nisshin OilliO Group, Ltd.・Daito Cacao Co., Ltd.

MalaysiaMalaysiaMalaysia・・Intercontinental SpecialtyIntercontinental Specialty Fats Sdn. Bhd. (ISF) Fats Sdn. Bhd. (ISF)

IndonesiaIndonesia・PT Indoagri DaitocacaoPT Indoagri Daitocacao

SingaporeSingaporeSingapore・T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co.,T.&C. Manufacturing Co., Pte. Ltd. (T&C) Pte. Ltd. (T&C) Pte. Ltd. (T&C) Pte. Ltd. (T&C)

China・Intercontinental Specialty Intercontinental Specialty Intercontinental Specialty Fats (Shanghai) Co., Ltd. Fats (Shanghai) Co., Ltd. Fats (Shanghai) Co., Ltd.

ItalyItaly・Intercontinental Specialty Fats (Italy) S.r.l. Fats (Italy) S.r.l.

Acquisition of a European baseThe Group completed procedures for investment in an Italian oil and fat refining company

Company name: Intercontinental Specialty Fats (Italy) S.r.l.Location: Genova, Italy

● In a location facing Genova Port, carry out refinement and storing of products mainly to be sold in Europe from Intercontinental Specialty Fats Sdn. Bhd. (hereinafter “ISF”)

● Realize quick responses to customers and enhance services with a base in the consumption area

● Use the base for customer service and sales activities to capture new business centered on southern Europe

● Scheduled to start operations from fiscal 2019● Aim for contribution to earnings of ¥300 million after five years, including benefits for ISF

Entry into a growth marketCompleted construction of chocolate plant in Indonesia

Company name: PT Indoagri DaitocacaoLocation: Indonesia

● Joint venture with the Salim Group● Expand business by leveraging the strong sales capabilities of the Salim Group in Southeast

Asia, including the expanding market in Indonesia● Completed construction of a plant in April 2019, launched sales from May ● Aim for contribution to earnings of ¥300 million after five years

・Strengthen the supply chain for Europe and China starting with ISF and accelerate sales of products in high value-added categories ・Capital investments in Daito Cacao and Nisshin OilliO’s Yokohama Isogo Plant will start contributing to earnings in Japan ・One-off decrease in earnings in fiscal 2018, but earnings can be expected to follow original forecast for fiscal 2020

Strengthen the global supply chain in the Processed Oil and Fat Business and capture investment benefits

Progress Report on Medium-Term Management Plan

Global Supply Chain in the Processed Oil and Fat Business

Going Forward

The Nisshin OilliO Group, Ltd. Annual Review 2019 6Message from the Management

Consolidated Results for Fiscal 2018In the fiscal 2018 (the fiscal year ended March 31, 2019), the Nisshin OilliO Group posted higher earnings on higher net sales. Consolidated net sales increased 1.5% year on year to ¥343,059 million, operating income increased 42.3% to ¥12,948 million, ordinary income increased 47.9% to ¥13,716 million, and net income attributable to owners of the parent increased 30.5% to ¥9,044 million. Consolidated results achieved record-high earnings due to global improvements in the business climate for oil pressing and steady performance of the Fine Chemical Business, as well as the development of a value-added business model in such ways as expanding sales of oil for topping enjoyed by simply putting healthy oil on dishes as is, and selling general-use edible oils at optimal prices.

Toward Achieving the Medium-TermManagement Plan In the medium-term management plan entitled “OilliO Value Up 2020” that we launched in fiscal 2017, we set basic policies to pivot to a better path of growth while inheriting business structure reforms.

In fiscal 2019, the third year of the medium-term management plan, we will undertake initiatives toward achieving specific management targets under the following management policy.

Management Policy for Fiscal 2019

■ Rigorously pursue globalization and business models that add diverse value as a growth strategy■ Pursue stable profits in the standard materials-type

businesses that form our base

Among these, the pursuit of value-added businesses is considered to be vital. In the Oil, Meal, and Processed Food Business, we are securing stable profits by optimally pricing general-use edible oils and expanding sales by proposing and communicating new ways to use oil for topping, alongside efforts to stimulate the market for household use. As for oils for commercial and processing use, we strive to provide solutions to our customers by further proposing high value-added products that are healthy or have enhanced functions.

In the Processed Oil and Fat Business, the main theme is capturing the benefits of investment and value creation by strengthening the global supply chain with ISF*1 in Malaysia as the starting point. In terms of investments that we have proceeded with until now, such as for boosting productivity at ISF, securing a production base*2 in Italy, and establishing a base*2 for the manufacture and sale of chocolate for business use in Indonesia*3, we set a goal to secure profits during fiscal 2019 and maintain

profitability through fiscal 2020 onward. On top of that, we are expanding sales for high value-added products in regions that continue to grow such as ASEAN countries and Europe, with a focus on southern Europe.

In the Fine Chemical Business, as a capital investment to meet the expanding demand for raw materials for cosmetics within and outside Japan, we are steadily proceeding with establishing a new plant (within the Yokohama Isogo Plant) to ramp up production capacity of high-quality raw materials for cosmetics and MCTs (medium-chain triglycerides).

In the Health Science Business where we strive to contribute to society through “the power of health and energy,” we are undertaking initiatives to further stimulate demand for MCTs. Along with continuing to convey the appeal of MCTs as useful for exercise and beauty, as promoted in commercials by professional soccer player Yuto Nagatomo and top model Jun Hasegawa, we have also been focusing on further strengthening the sales operation structure to expand sales with mass retailers and drugstores as our primary sales partners.*1 Intercontinental Specialty Fats Sdn. Bhd. *2 Intercontinental Specialty Fats (Italy) S.r.l.*3 PT Indoagri Daitocacao

Full-Year Consolidated Results ForecastAlthough the future remains uncertain amid concerns regarding a decelerating global economy, the raising of the domestic consumption tax rate, and the forecast for a harsher business climate for oil pressing, the Nisshin OilliO Group is unified in working towards achieving the consolidated results forecast for fiscal 2019 (¥345,000 million in net sales, ¥12,000 million in operating income, ¥12,500 million in ordinary income, and ¥8,200 million in net income attributable to owners of the parent).

As we move toward achieving the four-year medium-term management plan with fiscal 2019 as the third year, The Nisshin OilliO Group will further expand its horizons with value-added products and businesses.

President and Representative Director

Takahisa Kuno

The Nisshin OilliO Group, Ltd. Annual Review 2019 7Consolidated Financial Highlights

Operating income

10,2349,102

12,94812,000

(Millions of yen)

FY3/20(Forecast)

FY3/19FY3/18FY3/170

3,500

7,000

10,500

14,000

Ordinary income

10,3349,276

13,71612,500

(Millions of yen)

FY3/20(Forecast)

FY3/19FY3/18FY3/170

3,500

7,000

10,500

14,000

　

Total assets/Net assets

231,665*1 245,831

124,770*1124,770*1 132,035132,035

271,732*2

141,360*2141,360*2

265,285

149,099149,099

(Millions of yen)

0

100,000

200,000

300,000

FY3/19FY3/18FY3/17FY3/16

Total assets Net assets

Net sales

324,909 337,998 343,059 345,000

(Millions of yen)

0

100,000

200,000

300,000

400,000

FY3/20(Forecast)

FY3/19FY3/18FY3/17

Net income attributable to owners of the parent

7,5696,930

9,0448,200

(Millions of yen)

FY3/20(Forecast)

FY3/19FY3/18FY3/170

2,500

5,000

7,500

10,000

ROE

4.2*1

6.35.4*2

6.6

(%)

0

2.0

4.0

6.0

8.0

FY3/19FY3/18FY3/17FY3/16

*1 Figures for FY3/16 have been retrospectively adjusted to reflect changes in accounting policies from FY3/17.*2 In accordance with applying “Partial Amendments to Accounting Standard for Tax Effect Accounting” for FY3/2019, the Company has retrospectively adjusted the figures for FY3/2018 to conform with this accounting standard.

The Nisshin OilliO Group, Ltd. Annual Review 2019 8

Oil, Meal, and Processed Food Business

Key points

In the environment surrounding the procurement of raw materials, prices for soy and rapeseed remained level year on year, partly due to market prices for main ingredients remaining high until around May and despite the yen being relatively strong against the U.S. dollar compared to the previous fiscal year. Sales and income for oil and processed foods exceeded the previous fiscal year due to sales at appropriate prices reflecting raw material costs and expanded sales of high value-added products. The household-use domain performed strongly after striving to expand sales of high value-added products such as olive oil, flaxseed oil and sesame oil, and expanded sales of highly functional oils and fats such as Nisshin Healthy-Off. Oil meal sales increased year on year as Chicago’s market price for soymeal rose due to a decline in production in Argentina, among other factors, which drove up soymeal sales prices in Japan. In soy proteins, sales to existing customers were firm and new business was also cultivated successfully. In dressings, sales of major products increased and MCT-related products continued to perform strongly.

Net sales

¥238,496 million( Up 7.1% YoY )

Operating income

¥7,546 million( Up 136.8% YoY )

Ratio of total sales

69.5%

Operations Review (April 2018–March 2019)

Household-use products (edible oils, dressings) Edible oils for commercial use Edible oils for food processing Oil meals

Business segment profile

Wellness foods (foods for the elderly and those in nursing care, foods for those receiving medical treatment, foods supporting beauty and exercise) Soy foods Tofu etc.

The Nisshin OilliO Group, Ltd. Annual Review 2019 9

Processed Oil and Fat Business

Key points

In domestic processed oil and fat, sales of oils and fats to processed food manufacturers increased compared to the previous fiscal year and a subsidiary strived to sell chocolate products at an appropriate price. Sales of confectionery ingredients (premix products) increased year on year, and net sales and operating income for domestic processed oil and fat as a whole also increased. In overseas processed oil and fat, sales volume and net sales both decreased compared to the previous fiscal year as domestic sales in Malaysia decreased, despite generally firm sales of high value-added products for Europe. Moreover, operating income was down year on year due to rising utility costs in addition to the combined effects of the palm oil market and foreign exchange rate fluctuations.

Net sales

¥82,309 million( Down 11.7% YoY )

Operating income

¥3,988 million( Down 13.1% YoY )

Ratio of total sales

24.0%

In addition to the above, Other accounted for 1.0% of total sales.

Operations Review (April 2018–March 2019)

Fine Chemical Business

Key points

In raw materials for cosmetics, export sales to Asia, Europe and other places remained on a level similar to the previous fiscal year, but sales were brisk in Japan on the back of strong demand. Sales to the domestic market in China by Chinese sales subsidiaries were also brisk, which led to an increase in net sales year on year, but operating income remained about the same due to rising costs. In food and chemicals, and others, net sales ran parallel with the previous fiscal year due to expanded sales of chemicals in spite of MCT sales decreasing year on year. Operating income rose year on year as a result of striving for sales at appropriate prices.

Net sales

¥18,699 million( Up 3.4% YoY )

Operating income

¥1,554 million( Up 11.9% YoY )

Ratio of total sales

5.5%

Business segment profile

Raw materials for cosmetics and toiletries Chemical products

Detergents Disinfectants Surfactants

MCT Lecithin Tocopherol etc.

Processed palm oil products Margarines Chocolate-related products

Business segment profile

Specialty fats Shortenings

etc.

The Nisshin OilliO Group, Ltd. Annual Review 2019 10

Consolidated Financial Statements

Consolidated Balance Sheets(Millions of yen)

As of March 31, 2018

As of March 31, 2019

Assets

Current assets 153,087 140,510Noncurrent assets 118,519 124,668 Property, plant and equipment 82,299 87,261 Intangible assets 1,566 1,654 Investments and other assets 34,653 35,752Deferred assets 126 106Total assets 271,732 265,285

Liabilities

Current liabilities 78,977 69,547Non current liabilities 51,395 46,638Total liabilities 130,372 116,185

Net assets

Shareholders’ equity 125,580 132,405 Capital stock 16,332 16,332 Capital surplus 22,683 22,746 Retained earnings 87,598 94,420 Treasury stock (1,033) (1,094)Accumulated other comprehensive income 7,650 7,156 Valuation difference on available-for-sale securities 8,408 8,507 Deferred gains or losses on hedges (517) 236 Foreign currency translation adjustment 604 (690) Remeasurements of retirement benefits (843) (897)Non-controlling interests 8,129 9,537Total net assets 141,360 149,099

Total liabilities and net assets 271,732 265,285

Consolidated Statements of Income(Millions of yen)

Fiscal year ended March 31, 2018

Fiscal year ended March 31, 2019

Net sales 337,998 343,059 Cost of sales 285,084 284,115Gross profit 52,913 58,943 Selling, general and administrative expenses 43,811 45,994Operating income 9,102 12,948 Non-operating income 1,520 1,814 Non-operating expenses 1,346 1,047Ordinary income 9,276 13,716 Extraordinary income 1,034 38 Extraordinary loss 185 606Income before income taxes and non-controlling interests 10,125 13,148 Total income taxes 2,735 3,664Net income 7,390 9,483 Net income attributable to non-controlling interests 460 438Net income attributable to owners of the parent 6,930 9,044

Financial Position as of March 31, 2019

Total assets were ¥265,285 million as of March 31, 2019, down ¥6,447 million from the previous fiscal year-end. The main reasons for this decrease were decreases of ¥3,624 million in cash and deposits, ¥4,600 million in short-term investment securities, and ¥5,876 million in inventories, which were partially offset by an increase of ¥4,961 million in property, plant and equipment.

Total liabilities were ¥116,185 million, down ¥14,186 million from the previous fiscal year-end. The main reasons for this decrease were decreases of ¥2,769 million in notes and accounts payable – trade and ¥15,552 million in short-term loans payable.

Net assets were ¥149,099 million, up ¥7,739 million from the previous fiscal year-end. The main reason for this increase was an increase of ¥6,822 million in retained earnings “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018) have been applied from the beginning of the fiscal year under review. Accordingly, the figures presented for the financial position for the fiscal year ended March 31, 2018 have been retrospectively adjusted to conduct comparison and analysis against the fiscal year using figures that reflect the application of the aforementioned standard, etc.

Cash Flows for Fiscal 2018

Cash and cash equivalents were ¥13,140 million as of March 31, 2019, a decrease of ¥7,763 million from the previous � scal year-end.

Net cash provided by operating activities: Net cash provided by operating activities was ¥20,718 million. Factors that increased net cash included income before income taxes and non-controlling interests of ¥13,148 million, depreciation and amortization of ¥7,014 million and a decrease in inventories of ¥5,386 million. Meanwhile, net cash was reduced primarily by a decrease in notes and accounts payable – trade of ¥2,643 million and income taxes paid of ¥2,372 million.Net cash used in investing activities: Net cash used in investing activities was ¥11,270 million. Net cash was reduced primarily by purchase of property, plant and equipment of ¥10,216 million, and purchase of investments in subsidiaries resulting in change in scope of consolidation of ¥1,067 million.Net cash provided by financing activities: Net cash used in financing activities was ¥16,949 million. Net cash was reduced primarily as a result of a net decrease in short-term loans payable of ¥4,582 million, repayment of long-term loans payable of ¥10,675 million and cash dividends paid of ¥2,222 million.

The Nisshin OilliO Group, Ltd. Annual Review 2019 11

The Nisshin OilliO Group is promoting the creation ofsustainable mechanisms for its supply chain.

Topics

Establishment and Dissemination of the Basic Procurement Policy

Initiatives for Palm Oil

Subsidiary ISF (Malaysia)’s InitiativesThe group established the Nisshin OilliO Group Basic

Procurement Policy on the basis of recognizing the importance of company-wide initiatives for the entire supply chain that develop and realize a sustainable society through business activities. It serves as the guideline for all procurement activities for raw materials, services, and other business. The group has also explained this policy to approximately 500 key suppliers, who understood and agreed with its content.

Palm oil, which is primarily produced in Southeast Asia, has a wide range of applications with high productivity. However, it has been indicated as an issue on environmental and social fronts. To contribute to the healthy development of the palm oil industry, the Nisshin OilliO Group has been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2012. The company is working towards sustainable palm oil, and in June 2018, established the Palm Oil Procurement Policy, which was revised in December 2018 to include zero deforestation, zero peatland development, and zero exploitation of laborers (content of NDPE®*). * No Deforestation, No Peat, No Exploitation

As the demands of society increase, ISF has been undertaking initiatives to realize “responsible procurement of palm oil.” Along with increasing the amount of RSPO-certified oil procured to achieve a sustainable supply chain, the subsidiary is also implementing activities to raise awareness among trade partners through fieldwork at plantations and oil mills and study groups. ISF also releases content regarding its initiatives (list of suppliers, traceability, etc.) on its website (http://isfsb.com/).

An inspection at a palm plantation

Nisshin OilliO GroupBasic Procurement Policy

1. Compliance and Fair Business Practices

2. Quality and Safety Standards

3. Respect for Fundamental Human Rights

4. Consideration for the Environment

5. Protection of Confidential or Personal

Information

6. Strengthening Partner Relationships

* For more details on each of the items of the Nisshin OilliO Group Basic Procurement Policy, please visit the official website:

https://www.nisshin-oillio.com/english/csr/procurement_policy.shtml

The Nisshin OilliO Group, Ltd. Annual Review 2019 12Corporate Data (As of March 31, 2019)

Consolidated SubsidiariesCorporate DataCompany Name : The Nisshin OilliO Group, Ltd.Head Office : 1-23-1 Shinkawa, Chuo-ku, Tokyo 104-8285, JapanTelephone Number (Main) : +81-3-3206-5005Date of Establishment : March 7, 1907Paid-in Capital : ¥16,332,128,633Number of Employees : 2,786 (Consolidated)

Stock InformationNumber of Shares of Common Stock : Authorized: 77,670,000 shares : Issued: 34,207,877 shares (excluding treasury stock)Number of Shareholders : 30,653

Major Business SitesHokkaido Office, Tohoku Office, Kanto Shin-etsu Office, Tokyo Office, Chubu Office, Osaka Office, Chugoku Office, Kyushu Office, Yokohama Isogo Plant, Nagoya Plant, Sakai Plant, Mizushima Plant and Central Research Laboratory

Yokohama Isogo Plant

Japanese Subsidiaries (11 companies)Settsu Oil Mill, Inc.

Nisshin Shoji Co., Ltd.

Nisshin Logistics Co., Ltd.

NSP Co., Ltd.

Daito Cacao Co., Ltd.

Nisshin Shokai Co., Ltd.

Marketing Force Japan, Inc.

Nisshin Finance Co., Ltd.

The Golf Joy Co., Ltd.

Mogi Tofu Co., Ltd.

Yamakiu Transport Co., Ltd.

Overseas Subsidiaries (9 companies)Shanghai Nisshin Oil & Fats, Ltd.

The Nisshin OilliO (China) Investment Co., Ltd.

The Nisshin OilliO (Shanghai) International Trading Co., Ltd.

Intercontinental Specialty Fats Sdn. Bhd.

Industrial Química Lasem, S.A.U.

T.&C. Manufacturing Co., Pte. Ltd.

PT Indoagri Daitocacao

Intercontinental Specialty Fats (Shanghai) Co., Ltd.

Atici S.r.l.** In April 2019, the company changed its name to

Intercontinental Specialty Fats (Italy) S.r.l.

Principal Shareholders (As of March 31, 2019)

Shareholders Shareholdings(thousands)

Percentage of total shares issued (%)

Marubeni Corporation 5,200 15.20

The Master Trust Bank of Japan, Ltd. (Trust Account) 2,077 6.07

Japan Trustee Services Bank, Ltd. (Trust Account) 1,407 4,11

Sompo Japan Nipponkoa Insurance Inc. 1,004 2.93

Aioi Nissay Dowa Insurance Co., Ltd. 956 2.79

Japan Trustee Services Bank, Ltd. (Trust Account No. 9) 845 2.47

DFA International Small Cap Value Portfolio 796 2.32

MUFG Bank, Ltd. 774 2.26

Japan Trustee Services Bank, Ltd. (Trust Account No. 5) 506 1.48

Sumitomo Mitsui Trust Bank, Limited 483 1.41

Note 1. The Nisshin OilliO Group holds 459 thousand shares of treasury stock, but it is not listed among the principal shareholders above. 2. The percentage of total shares issued is calculated excluding treasury stock.

Breakdown of Shareholders

Domestic Companies and Others23.8% (274/8,240,875)

Financial Institutions 32.3% (44/11,201,012)

Individuals and Others 22.1% (30,100/7,647,548)

Foreign Institutions and Individuals 19.1% (201/6,632,599)

Securities Companies 1.4% (33/485,843)

Treasury Stock 1.3% (1/459,980)

Investor Category

(Number of Shareholders/Number of Shares)