The Nisshin OilliO Group, Ltd.Fortified global platform for growth, mainly at ISF, Daito Cacao Co., Ltd. and T.&C. Manufacturing Co., Pte. Ltd. Fine Chemical Business Growth of business

March 28, 2017

2020

The Nisshin OilliO Group, Ltd. Fiscal 2017–Fiscal 2020 Four-Year Medium-term Management Plan

Takao Imamura

President and Representative Director

The Nisshin OilliO Group, Ltd.

Billion yen Consolidated operating income trends

Our basic policy is to build a solid earnings base for the future, mainly by improving earnings in the core oil and fat business. We expect to post our third consecutive fiscal year of profit growth, driven by structure reforms and the deployment of global strategies.

Segment Initial goal Result

Oil and Meal Business, and Processed Food Business

Domestic Oil and Fat Business

Stable profits

Made progress in structure reforms by deploying high value-added products, improving earnings in standard oils category, and reducing costs

Healthy Food and Other Businesses

Creation of new businesses and brands for MCT products

Expanded lineup of health-related products that use MCT, and develop market for elderly and nursing care

Processed Oil and Fat Business

Steadily expand earnings to develop into the second pillar after the Domestic Oil and Fat Business

Fortified global platform for growth, mainly at ISF, Daito Cacao Co., Ltd. and T.&C. Manufacturing Co., Pte. Ltd.

Fine Chemical Business Growth of business size worldwide

Expanded sales of raw materials for cosmetics in China

Issues

• Transformation of business structure to cope with market changes, including aging society, and active business development in growth markets

• Further expansion of overseas operations leveraging the global platform built so far and proprietary technological expertise

• Ongoing business structure reforms by boosting the ration of value-added products in the Domestic Oil and Fat Business

• Sustain and fortify oil milling competitiveness by pursuing efficiency improvements

2

5.6

7.5

9.0

Recognition of Current Trends & Review of FY2014–FY2016 Medium-term Management Plan

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

Fiscal 2014 results Fiscal 2015 results Fiscal 2016 forecast

Strategic Marketing

2020

Globalization Technological Innovation

□ 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 values through contributions to good dietary environment and good health.

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

Basic policies

Increase investment to accelerate globalization and strengthen cooperation between sites

Strengthen our marketing capability to create new additional value

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

Structure reforms for oil milling and fortification of production platforms

ESG management

Globally expand the Health Science Business, which contribute to society through "the power of health and energy"

Growth strategies

*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

Corporate Vision & Basic Policy

Reinforcement

3 OilliO 2020

Operating income

ROE

(Plan)

: ¥9.0 billion : 5.0%

2017

2018

2019

2020

Crossing over from structure reforms to growth trajectory

KPIs for growth strategy

● 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

● Improve value of MCT: Recognition rate of MCT

●Create new value for Oil and Fat Business and

expand business domain

●Enhance presence as a global company

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

2016

Vision for the future

ROE: 10%-plus 2020

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

Operating income

ROE

EPS growth

Operating cash flow

: ¥13.0 billion-plus

: 7%-plus

: 8% (annual average)

: ¥50.0 billion (cumulative)

4 Targets OilliO 2020

* In fiscal 2017, for accounting purposes, our reporting segments are “Oil and Meal and Processed Food,” “Processed Oil and Fat,” and “Fine Chemical.”

¥9.0 billion

Fine Chemical

Processed Oil and Fat

Oil and Meal and Processed Food

11

32

47

¥13.0 billion

Fiscal 2020 (forecast)

Fine Chemical


Oil and Meal and Processed Food

20

49

61

Oil and Meal, Others

Health Science

＋900 million

＋500 million

Domestic

Overseas

＋600 million

＋300 million

Domestic ＋300 million

Fiscal 2016 (forecast)

Overseas ＋1,400 million

* In the Oil and Meal and Processed Food Business, we aim to achieve profit growth by continuing to implement structure reforms and growth strategies, despite the harsh business environment—population decline in Japan and negative impact from TPP agreements and FTAs.

5 Segment Operating Income

Globally expand the Health Science Business, which contribute to society through "the power of health and energy"

Item KPI Fiscal 2020 goal

Expand Health Science Business Sales growth rate for Health Science Business Annual average growth of 20% (+ 205% versus fiscal 2016)

● Speedy expansion by using resources outside the group, including global collaborations that pivot around distinctive

technological development and technologies

Segments Products (example)

Oil and Meal, and Processed Food

[Oil and fat products]

• Healthy oils (Healthy Resetta, etc.)

• Coconut oil

[Wellness foods]

• Enepurin, Memorion,

• MCT oil and MCT powder, etc.


• MCT oil

• Crystallized powder fat

Fine Chemical • MCT oil

* Expansion utilizing the existing organizations and channels of the Nisshin OilliO Group in Japan and abroad

Health Science Business

This business will be at the core of group synergies aiming to contributes to society by empowering customers with

"the power of health and energy" throughout the diverse life stages of their lives. This business added new value

in various businesses based on proprietary oil and fat technologies nurtured thus far. These technologies employ

medium-chain triglyceride (MCT) and technologies that make oils delicious and easy to eat.

Infancy School age-youth Prime of life to middle- and upper middle age Active seniors Lively elderly

Development of a new born

Growing child Obesity in middle/ upper-middle age (countermeasure for

lifestyle diseases)

Forgetfulness as a senior

Poor nutrition among elderly

Easily converted into energy to build

muscular strength and improve reflexes

To help prevent the adherence of fat in the body

Alternative energy for the brain

(ketone bodies)

Easily converted into energy for activities for daily living (ADL)

and vitality

6 Major Strategies based on Basic Policies

Marvels of breast milk

(currently conducting research)

Increase investment to accelerate globalization and strengthen cooperation between sites


Acceleration of globalization Overseas sales growth rate Annual average growth of 7% (+132% versus fiscal 2016)

●In the Processed Oil and Fat Business, we plan to expand overseas platforms, mainly comprising of development in Southeast Asia, and create in-depth collaborations between sites

●In the raw materials for cosmetics business, we aim to cultivate markets in East Asia and develop new markets in Europe and the Americas

Build a global supply chain originating from site in Malaysia to cater to chocolate and confectionery markets

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

Industrial Química Lasem (IQL), S.A.U. (Spain)

●Actively considering the use of outside resources, including M&A and partnerships to accelerate globalization and to expand the Health Science Business

In the raw materials for cosmetics business, which utilizes sites in China and Europe, strengthen communication with users, including major cosmetics manufacturers, and reinforce proposal skills

Signing chocolate business merger with the Salim Group

Intercontinental Specialty Fats Sdn. Bhd. (ISF; Malaysia)

Open R&D center equipped with state-of-the-art facilities

Presentation for users in China

Oil and fat for high-end cosmetics

PT. Indoagri

Daitocacao

(Indonesia)


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


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

Annual average growth of 2% (+110% versus fiscal 2016)

* Gross profit: Sales minus cost of sales and selling expenses

●In the ready-to-eat foods and restaurant domains, cultivate and expand sales by a sales method that focuses on cooperation to unearth user needs

●Improve proposals in the edible oils for commercial-use and edible oils for food processing domains, and secure new customers by strengthening and instilling user support functions

Jointly unearth customer needs and recommend appropriate solutions in the ready-to-eat foods and restaurant domains

Long use as resists oxidation

Recommend packing materials that are easy to use and produce little waste

Sales method that focuses on cooperation to unearth user

needs Pillow packaging

Prevent oil absorption

Bag-in-box (BIB)

Packaging making it easy-to-use even for women and seniors to work in restaurant kitchens


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


Enhance profit margins on the household-use products

Gross profit growth rate in the household-use domain

Annual average growth of 3% (+114% versus fiscal 2016)

●Enhance brand power by shifting product lineup to high-margin items and further pursuing a leading position in the market

●Create a market by recommending new uses for oils, and processed foods that make it simple to deliciously consume oils

“Fresh-keep oil” (that come in fresh-keep bottles)

Build up lineup of processed foods, including high value oils that can easily be enjoyed with raw foods

Dressings with the texture of a smoothie that contain extra virgin olive oil and vegetables

“Oil for topping” series Nisshin olive-kaoru smoothie dressings BOSCO CAFE


Strengthen our marketing capability to create new additional value


Improve value of MCT Recognition rate of MCT 50% (+24% versus fiscal 2016)

●Leverage development of products and applications by promoting sales method that focuses on cooperation to unearth user needs and speedy product deployment capabilities

●Strategic branding of high value-added products, whose key element is MCT

Medium-Chain Triglyceride

MCT

MCT being included in meals at rehabilitation centers

Recommending MCT to improve muscular

strength and stamina of athletes

Nutritional support using Healthy Resetta for the Yokohama F Marinos

youth teams

Collaborations between industry, academia, and

the government in Suzuka City to extend healthy life expectancy

using MCT

MCT is a super energy that support the health of many people at each stage of

life, from infancy to senior years

MCT being used in rehabilitation programs that use Cyberdyne’s

robot suit


Strengthen platforms and infrastructure


Business structure reforms Cost reduction owing to process innovations

¥2.0 billion-plus

●ESG management

● Full-fledged cost reduction by strengthening production technologies, including the use of AI and IoT, and rebuild production platform to adequately adapt to changes in market and business structure

● Fortify oil and fat sales infrastructure by attaining competitiveness in oil milling and by cultivating technologies used in the processing of oils and fats

●Structure reforms for oil milling and fortification of production platforms

Offices at main site are now free address offices and have gone paperless. Now we are aiming to further improve productivity

● Implement environmental management and transparent management

● Actively undertake health management, which positions “the promotion of employee health” as a key theme in management

● Improve productivity through workstyle reforms

Workstyle reforms


Use in hospitals and to treat diseases (as a dietary therapy) • Nutritional supplement post-surgery or for

premature infants

• Alleviate epileptic seizures

1960s

Use to treat lifestyle-related diseases (as normal food) • To help prevent the adherence of fat in

the body (Healthy Resetta)

• Energy supplement for seniors

1990s

New growth • Dietary therapy for Alzheimer-type dementia and cancer

• Improve muscular strength and stamina of athletes

2000s

Given the growing prospects for MCT, we plan to commercialize MCT as a food product that is easy to consume and recommend various other uses by leveraging our technological expertise which is backed by more than 40-years of research results.

Specific use for post surgery, etc.

Easy to use as a cooking oil

MCT can efficiency produce ketone bodies

Deliver MCT in product groups designed to suit each of our customers’ many life stages

Supply MCT in household cooking oils


MCT

12 Expand Health Science Business with Technologies that Center on MCT

Example of technology for processing fat to make it easy to consume

Our proprietary technologies enable us to process oils with completely different properties than conventional powdered fat under certain conditions (Patent pending)

Various uses including preventing water separation by coating the surface of food or a paste made from emulsified water or juice and oil

Improve QOL for patients with Alzheimer-type dementia

MCT is energy for the brain Effectively produce ketone bodies


MCT

Crystallized powder fat

• Improve memory and cognitive skills • Better behavior, conversation skills, and

speech and conduct • Recoup lost vitality, etc.

Crystallized powder fat expands the use of oils and fats and increases the volume of intake so there are many different potential applications for food

13 Expand Health Science Business with Technologies that Center on MCT

* The graph depicts responses of persons with dementias or other cognitive disorders to coconut oil or oils containing medium chain triglycerides as reported by their caregivers (n=184, September 2012). Source: Modified based on “KETONES & MEDIUM CHAIN TGs: ALTERNATIVE FUELS FOR ALZHEIMER’S AND OTHER DISORDERS” presentation by Mary T. Newport M.D., at the MCT Symposium

Improvements and benefits patients with dementia or other cognitive disorders gained from taking MCT

Pursue enhancement of corporate value while maintaining optimal balance between capital efficiency that emphasizes ROE and financial soundness

Our policy is to achieve a payout ratio of roughly 30% to adequately return the benefits of profit growth to our shareholders

Operating & investment cash flow

Operating cash flow

＋¥50.0 billion (cumulative)

–¥50.0 billion (cumulative)

Capital expenditure &

business investment

For capital expenditures, we will identify the profit margin on and necessity of each investment. These investments will primarily be to boost production capacity in the Processed Oil and Fat Business and the Fine Chemical Business, secure competitiveness of domestic plants, and hone the efficiency of investments of domestic plants. We plan to actively carry our business investments, including M&A, taking into account synergistic benefits. We plan roughly ¥50 billion in capital expenditures and business investments.

Our policy is to maintain a payout ratio of roughly 30% to provide stable returns. Focusing on the total return ratio and improvement to capital efficiency, we plan to flexibly buy back our own shares taking into account market factors, including stock price.

Our policy is to keep capital expenditures and business investments, including M&A, within the scope of operating cash flow. However, in the event of a major business investment, including large-scale M&A, we will use our cash on hand and newly procure capital to fund this

Dividends

Investm

ent Re

turn

14 Financial Strategies

Targets

KPIs

Item Target Fiscal 2020 goal

Profit margins Operating income ¥13.0 billion

Management efficiency ROE 7%

Growth EPS (annual average growth) 8%

Secure cash flow Cumulative operating cash flow for four-year period Cumulative ¥50.0 billion


Expand Health Science Business Sales growth rate for Health Science Business

Annual average 20% (+205% versus fiscal 2016)

Acceleration of globalization Overseas sales growth (forex neutral) Annual average 7% (+132% versus fiscal 2016)

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

Gross profit growth in the household-use domain


Improve value of MCT Recognition rate of MCT 50% (24% versus fiscal 2016)

Business structure reforms Cost reduction owing to process innovations

¥2.0 billion-plus

15 Targets & KPIs

These materials including forward-look statements. The assumptions, forecasts, and estimates are based on

information currently available at the time these materials were prepared. Actual measures, policies, strategies,

and earnings results may differ due to various factors that could arise going forward.

Documents

The Nisshin OilliO Group, Ltd.Fortified global platform for growth, mainly at ISF, Daito Cacao Co., Ltd. and T.&C. Manufacturing Co., Pte. Ltd. Fine Chemical Business Growth of business