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Nissin Food Products Co., Ltd., and Its Consolidated Subsidiaries Financial Highlights For the years ended March 31 Net sales ¥ 316,973 ¥ 320,033 $2,951,606 –1.0 Operating income 28,963 23,203 269,699 24.8 Net income 16,612 14,051 154,689 18.2 As of March 31 Total assets ¥ 361,105 ¥ 343,645 $3,362,557 5.1 Shareholders’ equity 258,139 244,439 2,403,753 5.6 Per share (yen, U.S. dollars) Millions of yen Thousands of U.S. dollars Percent change 2005 2004 2005 (%) Net income ¥ 134.36 ¥ 113.61 $ 1.25 18.2 Cash dividends applicable to earnings of the year 30.00 30.00 0.28 — Shareholders’ equity 2,091.16 1,980.14 19.47 5.6 Value & performance indicators 2005 2004 2003 Operating margin (%) 9.1 7.3 8.4 Return on assets (%) 4.7 4.2 4.4 Return on equity (%) 6.6 5.9 6.2 Inventory turnover (times) 12.9 13.6 13.6 <strong>No</strong>tes: 1. U.S. dollar amounts represent translations of yen, for convenience only, at US$1 = ¥107.39, the approximate rate prevailing on March 31, 2005. 2. Inventory turnover = Cost of sales / Average total inventory Net Sales Operating Income Net Income (Billions of yen) (Billions of yen) (Billions of yen) 350 35 20 315 320 317 301 308 29 300 30 27 26 15 250 25 25 15 23 200 20 10 150 15 12 14 14 17 100 50 10 5 5 0 0 0 ’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05 2
To Our Shareholders For fiscal 2005, ended March 31, 2005, Nissin Foods recorded a 1.0% drop in consolidated net sales, to ¥316,973 million ($2,952 million), primarily owing to the effects of unseasonal weather in Japan and a relatively high yen. Despite lower net sales, operating income jumped 24.8%, to an all-time high of ¥28,963 million ($270 million), thanks in large part to a reduction in costs associated with retirement benefits and reduced cost of sales ratio. Net income climbed 18.2%, to ¥16,612 million ($155 million). Building stronger corporate structure amid changing conditions Domestic Review A record-hot summer and the impact of yen appreciation are just the most recent factors affecting our operating environment and sales. Indeed, over the last decade or so we have had to deal with quite a few developments, including obvious changes in the natural environment, exemplified by the heightened frequency and intensity of typhoons, earthquakes, cold waves and cold summers; issues related to food safety, particularly the O-157 strain of E. coli bacteria and bovine spongiform encephalopathy; and the introduction of legislation in April 2004 requiring retail prices to include consumption tax. While the hot summer certainly dampened demand for instant noodles, the fact that this food product can be stored safely at room temperature prevented the huge fluctuations that the developments noted above can have on sales. Moreover, demand for instant noodles is not influenced as much as other types of food products by economic conditions. We worked to complement this inherent feature of our business with persistent efforts to build a stronger corporate structure capable of generating stable profits even under adverse business conditions. We continue to focus on enhancing our brand power, trimming the cost of sales ratio, curbing our promotional expenses, and implementing new personnel systems, such as the Strategic Business Unit. To Our Shareholders New themes in product development Our marketing efforts are guided by four objectives, which seek to enhance the value and efficiency of sales activities, raise brand value, emphasize product safety and reliability, and underpin a strategy targeting products at specific customer segments. We have also highlighted one of the 10 Golden Rules for Nissin Employers — first entry Koki Ando President 3
Page 2 and 3: Nissin Foods’ Slogan in 2005 is
Page 6 and 7: To Our Shareholders Nissin Kentaro
Page 8 and 9: Maintaining food safety is paramoun
Page 10 and 11: Review of Operations (Consolidated)
Page 12 and 13: To promote marketing strategies tha
Page 14 and 15: Review of Operations Review of Over
Page 16 and 17: Review of Operations In Beijing, Ni
Page 18 and 19: Review of Operations Research and D
Page 20 and 21: Founder Momofuku Ando: Father of an
Page 22 and 23: Board of Directors (As of June 29,
Page 24 and 25: Financial Review F inancial Section
Page 26 and 27: Net cash used in investing activiti
Page 28 and 29: (2) Increases in Price of Raw Mater
Page 30 and 31: Nissin Food Products Co., Ltd. and
Page 36 and 37: F inancial Section Derivative trans
Page 38 and 39: The Company’s pensions are paid f
Page 40 and 41: 14. Litigation The Group is not cur
Page 42 and 43: Basic Policy Regarding Corporate Go
Page 44 and 45: Worldwide Network W orldwide Networ
Page 46 and 47: Corporate Data Nissin Food Products
Page 48: 28-1, 6-chome, Shinjuku, Shinjuku-k

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