(Translated)

ItohamYonekyu Holdings Inc. (2296)
November 08, 2022

Consolidated Financial Results
for the Six Months Ended September 30, 2022 (Q2 FY 2022)(Japanese Accounting Standards)
Company name:
Stock exchange listing:Stock code:
URL:
Representative:
Contact:

Itoham Yonekyu Holdings Inc.
Tokyo Stock Exchange2296

https://www.itoham-yonekyu-holdings.com

Isao Miyashita, President and Representative Director
Masaru Kato, General Manager, Public &Investor Relations OfficeTel. +81-3-5723-6889
November 14, 2022
Scheduled date for filing of securities report:
Scheduled date of commencement of dividend payment: Supplementary documents for quarterly results:
Yes
Quarterly results briefing:
Yes(for analysts and institutional investors)(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022–September 30, 2022)(1) Consolidated Results of Operations (Accumulated Total)(% figures show year-on-year change)
Profit (loss)
attributable to owners
Million Yen% Million Yen% Million Yen% Million Yen%
448,004
15,13816,161
10,905
7.2
4.5
-2.3
-7.7
417,762
14,480
16,54011,810――――15,557 million Yen (26.8%)
Six months ended September 30, 2022
12,271 million Yen (－%)
Six months ended September 30, 2021
Profit (loss)
Diluted net income
per shareper share
Yen
Yen
37.52
37.51
40.33
40.31
Net sales

Six months ended
September 30, 2022
September 30, 2021
(Note) Comprehensive income:Six months ended
September 30, 2022
September 30, 2021

Operating profit

Ordinary profit(Note) As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. has been applied from the beginning of the second quarter of the fiscal
year ending March 31, 2022, therefore the percentage change from the same period of the previous year is not stated.

(2) Consolidated financial position
Total assets
Net assets
Million Yen
Million Yen
449,932
269,401
413,123
262,740
As of September 30, 2022
As of March 31, 2022

As of September 30, 2022
As of March 31, 2022
(Reference) Shareholders’ equity:

Equity ratio
%
59.7
63.4
268,758 million Yen
262,023 million Yen

2. DividendsFirstquarter-end

Secondquarter-end

For the fiscal year ended
Yen
March 31, 2022－
March 31, 2023－
For the fiscal year ending
March 31, 2023
(Forecast)(Note) Changes to most recent dividend forecast: None

Yen
0.00
0.00

Dividend per share
Third
quarter-end
Yen
－

－

Fiscalquarter-end

Total

Yen
23.00

Yen
23.00

24.00

24.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)
Net Sales
Full year

Million Yen
895,000

Operating profit%
4.8(Note) Changes to most recent financial results forecast: Yes

Million Yen%
21,000 -14.7(% figures show year-on-year change)
Profit (loss)
Profit (loss) per share
attributable to owners
Million Yen% Million Yen%
Yen
24,000 -16.1
15,000 -21.5
51.93
Ordinary income(Translated)

ItohamYonekyu Holdings Inc. (2296)* Notes(1) Changes in significant subsidiaries during the term (changes in specific subsidiaries accompanied by a change in thescope of consolidation):
None

(2)

Application of special accounting treatment in the preparation of the quarterly consolidated financial statements: None

(2)

Chaneges in accounting policies,chaneges of accounting estimates and restatement(i)
Changes in accounting policies due to amendments to accounting standards:(ii) Other Chaneges in accounting policies:(iii) Chaneges in accounting esteimates:(iv) Restatement:

None
None
None
None

(3) Numbers of shares outstanding (common stock)(i)
Numbers of issued shares at end of period:
Six Months Ended September 30, 2022:
292,355,059 sharesYear ended March 31, 2022:
297,355,059 shares(ii) Numbers of treasury shares at end of period:
Six Months Ended September 30, 2022:
3,511,640 sharesYear ended March 31, 2022:
5,458,762 shares(iii) Average number of shares outstanding during period (quarterly cumulative period):
Six Months Ended September 30, 2022:
290,631,539 shares
Six Months Ended September 30, 2021:
292,809,698 shares* This Summary of Consolidated Financial Results is outside the scope of the external audit.
* Explanation for using the forecasted informaiton and the other special notes(Notes concerning forward-looking statements, etc.)
This summary financial report contains forward-looking statements and forecasts are made based on information available to thecompany at the time of preparation and certain assumption deemed to reasonable and actual result may significantly due tovarious factors.
For assumptions used for earnings forecasts and notes on the use of earnings forecasts, please refer to “(3) Information on the consolidated
earnings forecasts and other future forecasts” under “1. Qualitative Information on Financial Results ” on page “3”.
(Access to Supplementary Explanations)
We plan to hold a briefing for institutional investors and analysts at the same time as the web conference on Wednesday November 9, 2022.
Explanatory materials for quarterly financial results will be published on TDnet for viewing in Japan and on our website.

(Translated)

ItohamYonekyu Holdings Inc. (2296)

Contents
1. Qualitative Information on Consolidated Operating Results for the Six Months Ended September 30, 2022 ............... 2(1) Description of operating results ..........................................................................................................................2(2) Description of financial position .........................................................................................................................3(3) Information on the consolidated financial forecasts and other future forecasts ..................................................3

2.Consolidated Financial Statements and Key Notes ........................................................................................... 4(1) Consolidated balance sheets ................................................................................................................................4(2) Consolidated statements of income and comprehensive income Consolidated statements of income ...............6(3) Consolidated statements of cash flows ...............................................................................................................8(4) Notes on the quarterly consolidated financial statements ...................................................................................9(Notes on going concern assumptions) ................................................................................................................9(Notes in the case of significant changes in shareholders' equity) .......................................................................9(Segment information) .........................................................................................................................................9-1-

(Translated)

ItohamYonekyu Holdings Inc. (2296)
1. Qualitative Information on Consolidated Operating Results for the Six Months Ended September 30, 2022
(1) Description of operating results
During the first half of the consolidated fiscal year under review, the Japanese economy showed some signs of recovery amid thenormalization of socioeconomic activities. However, prices continue to rise due to soaring resource prices and the rapid depreciationof the yen, and there are concerns that consumer confidence will decline.
The industry also continued to face a challenging business environment as costs rose due to soaring raw material prices and heating
and lighting expenses, as well as the effects of sharp depreciation of the yen. In addition, the Company continues to be required torespond to rapidly changing and diversifying consumer needs and values, such as change in consumer behavior and accelerating
digitalization and growing interest in sustainability.
Under these circumstances, in accordance with the priority policies of the Medium-Term Management Plan 2023, the Group has
decided to reorganize the entire Group as of April 1, 2023, with our company as the business holding company, in order to establish
a more efficient and competitive business operation and organizational structures that will lead to maximizing the effects of integrationand improving growth potential. In New Business and Market Initiatives, we are strengthening our lineup of non-meat products aswell as our healthcare business through the acquisition of Australian company which we announced on April 2022. Furthermore, aspart of the sustainability initiatives, we have defined a target to reduce the Group's greenhouse gas emissions by half from the fiscal
2016 level by fiscal 2030 and to achieve net zero emissions by 2050, and are moving forward with efforts to implement this target.
Focusing on return on invested capital (ROIC) as a quantitative indicator in the Medium-Term Management Plan 2023, the Grouptargets to improve it to 6.8% during the such period. In order to maximize shareholder value through shareholder return policies
that take into account financial soundness and capital efficiency, the Group intends to steadily increase the dividend payout ratio to arange of 30% to 50%, with a target payout ratio of approximately 40%. As for share buybacks, we set a limit of 5 billion yen for thecurrent fiscal year, and by the end of the second quarter, we had repurchased 2.1 billion yen and cancelled 5 million shares.
As a result of above efforts to respond to changes in the business environment, consolidated net sales for the second quarter
increased 30,241 million yen to 448,004 million yen (up 7.2% YoY), operating income increased 658 million yen to 15,138 million
yen (up 4.5% YoY), ordinary income decreased 379 million yen to 16,161 million yen (down 2.3% YoY), and net income attributableto owners of the parent decreased 904 million yen to 10,905 million yen (down 7.7% YoY).
The results by reportable segment are as outlined below.
Processed Foods Division
With regards to hams and sausages, net sales increased due to efforts to expand sales of mainstay products for home use such as“The GRAND Alt Bayern”, “Asano Fresh Series”, “Pork Bits”, “Gotenba Kogen Arabiki Pork” and “Genkei Bacon Block Series” bylaunching TV commercials and conducting consumer campaigns, in addition to sales growth of commercial-use products such as
roast beef.
In cooked and processed foods, sales decreased due to lower sales volume despite effort to strengthen sales of products that meet
diversifying consumer needs, such as the “Marude Oniku! Series” using soybean meat, in addition to pizzas such as “La Pizza” and“Pizza Garden”, “Quick Dinner Series”, which are prepared in a convenient manner, “Onikuyasan no Souzai Series”, and the“Yonekyu Meatball Series”.
As a result, net sales for the first half of the current fiscal year in the Processed Foods Division increased 4,002 million yen to179,797 million yen (up 2.3% YoY), due in part to the effect of product price revisions. Ordinary income decreased 2,583 million yen
YoY to 4,577 million yen (down 36.1% YoY) due to further cost increases, including higher raw materials prices and heating andlighting expenses.
Meat Division
As for domestic businesses, while sales volume of imported meat fell due to higher local prices and the sharp depreciation of theyen, sales grew primarily due to higher unit sales prices in the overall domestic business and stronger sales of domestic beef as aresult of the recovery in the food service industry. Profits dropped due to the impact of rises in procurement and feed prices, as well
as fuel and other costs.
As for overseas businesses, both net sales and profits increased due to ANZCO Foods Ltd.'s efforts to focus on profitability for
procurement and sales, as well as higher sales prices reflecting strong overseas demand for meat products.
As a result, net sales in the Meat Division increased 26,146 million yen year-on-year to 266,018 million yen (up 10.9%), andordinary income increased 2,392 million yen to 12,250 million yen (up 24.3% YoY) in the second quarter of the fiscal year underreview thanks to the strong performance of ANZCO FOODS LTD.

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(Translated)

ItohamYonekyu Holdings Inc. (2296)(2) Description of financial position(Assets, liabilities and net assets)
Total assets at the end of the first half under review was 449,932 million yen, an increase of 36,808 million yen from the end of theprevious fiscal year.

This mainly reflects an increase in inventories.

Liabilities totaled 180,530 million yen, an increase of 30,147 million yen from the end of the previous fiscal year.

This was mainly

attributable to an increase in short-term borrowings and notes and accounts payable-trade.
Net assets was 269,401 million yen increased by 6,661 million yen from the end of the previous fiscal year. This was primarily
attributable to an increase in retained earnings and foreign currency translation adjustment.
Overview of cash flows
The balance of cash and cash equivalents (hereinafter referred to as “Funds”) at the end of the fiscal year under review decreasedby 27,330 million yen from the end of the previous fiscal year (a decrease of 21,599 million yen YoY) to 20,359 million yen.
◇Cash flows from operating activities
Operating activities decreased funds by 17,187 million yen (a decrease of 9,705 million yen YoY). The decrease was primarily
due to a rise in inventories, while the increase was largely as a result of recording net income before income taxes.
◇Cash flows from investing activities
Investing activities decreased funds by 14,717 million yen (a decrease of 5,433 million yen YoY). The main factors of thedecrease were payments for acquisition of non-current assets and businesses.
◇Cash flows from financing activities
Financing activities increased funds by 3,866 million yen (a decrease of 6,778 million yen YoY). The increase was largely due
to an increase in short-term borrowings, while the decrease was mostly due to cash dividends paid and purchase of treasury shares.

(3) Information on the consolidated financial forecasts and other future forecasts
In regard with the full-year forecast, we have revised up our previous financial result announced on May 9th 2022, because
the selling price of the meat business have exceeded the previous forecast.
As for profits, we remain the previous forecast.
Because overseas business keep the favorite result, however it has concern of rising raw material prices, utility costs, and theweakening of the JPY.

Revisions to the forecast for the year ending March 31, 2023 (April 1, 2022-March 31, 2023)
Net Income per
Share
(Yen)

Sales

Operating profit

Ordinary profit

Net Income(Million Yen)

(Million Yen)

(Million Yen)

(Million Yen)

Previous forecasts (A)865,000

21,00024,00015,00051.93

Curent forecasts (B)895,000

21,00024,00015,00051.93

Change (B-A) Change (%)

30,000

-

-

-

3.5

-

-

-

854,374

24,611

28,596

19,118Previous Year
(March 31, 2022)

65.34(Note)
The above forecasts are based on currently available information and certain assumptions judged to be reasonable, and actual
performance may differ from forecast figures due to various factors in the future.

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(Translated)

ItohamYonekyu Holdings Inc. (2296)

2. Consolidated Financial Statements and Key Notes(1) Consolidated balance sheets(Million Yen)
As of March 31, 2022
ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture & fixtures, net
Land
Leased assets, net
Others, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Investments and other assets
Total non-current assets
Total Assets-4-

As of September 30, 2022

47,99189,00874,814
1,713
19,037
10,848(7)
243,405

20,65998,385
103,325
1,977
27,206
17,344(14)
268,885

36,252
28,2741,530
26,0172,487
2,437
97,00037,34328,575
1,520
26,475
3,001
4,720
101,636

18,158
3,955
22,114

19,041
7,654
26,69529,59814,7226,374(93)
50,602
169,717413,123

30,893
15,3236,590(92)
52,714
181,046449,932(Translated)

ItohamYonekyu Holdings Inc. (2296)(Million Yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of Long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholder's equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

As of September 30, 2022

62,351
1,747
24,407
144
2,891
6,617
151
329
27,894
126,533

72,853
1,824
39,938
133
4,531
4,322
77
329
30,938
154,948

10,572
1,706
1,490
10,08023,849150,383

10,508
1,689
1,489
11,89425,581
180,530

30,00396,615
129,805(4,150)252,273

30,00392,924
133,996(2,494)
254,429

6,727
151
(684)
3,556
9,750
118
598
262,740
413,123

6,803
85
4,015
3,423
14,32877565
269,401
449,932(Translated)

ItohamYonekyu Holdings Inc. (2296)(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Million Yen)
Six Months Ended
September 30, 2021
(Apr. 1, 2021 - Sep. 30,
2021）

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating Income
Interest income
Dividend income
Rental income
Subsidy income
Share of profit of entities accounted for using eqity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Share of loss in investments accounted for using theequity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Insurance claim income
Gain on donation of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
OthersTotal extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Six Months Ended
September 30, 2022
(Apr. 1, 2022 - Sep. 30,
2022）

417,762
350,583
67,17852,69814,480448,004
380,396
67,60752,46915,138

17
148
210
540
888
551
2,357

36
136
231
547
－
562
1,514

168
63

306
73

－

19

64
296
16,54092
491
16,161

4
55
134
232
24
451

4
0
－
－
－
4

91
11
103
16,888
3,867
1,188
5,055
11,83323
11,810127－
127
16,038
4,625
478
5,104
10,93428
10,905

(Translated)

ItohamYonekyu Holdings Inc. (2296)

Consolidated statements of comprehensive income(Million Yen)
Six Months Ended
September 30, 2021
(Apr. 1, 2021 - Sep. 30,
2021）

ProfitOther comprehensive income
Valuation difference on available-for- sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other copmprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-7-

Six Months Ended
September 30, 2022
(Apr. 1, 2022 - Sep. 30,
2022）

11,833

10,934

(314)
(73)
1,001
(229)

58
(65)
3,004
(183)

55

1,809

438
12,271

4,623
15,557

12,24724

15,48373

(Translated)

ItohamYonekyu Holdings Inc. (2296)(3) Consolidated statements of cash flows(Million Yen)
Six Months Ended
September 30, 2021
(Apr. 1, 2021 - Sep. 30,
2021）

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for bonuses
Amortization of goodwill
Interest and dividend income
Interest expenses
Insurance claim income
Subsidy income
Gain on receipt of donated non-current assets
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Other
SubtotalInterest and dividends received
Proceeds from insurance income
Subsidies received
Interest paid
Payments associated with disaster loss
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale and redemption of investment securities
Loan advances
Proceeds from collection of loans receivable
Payments for acquisition of businesses
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-

Six Months Ended
September 30, 2022
(Apr. 1, 2022 - Sep. 30,
2022）

16,8885,428(2,226)
717
(166)
168
(322)
(540)
(232)
(888)
(55)
(2,393)(23,388)
8,825
(520)
(13)
(944)
(2,518)(2,181)
818
265
324
(168)
(60)
(8,703)(9,705)16,0385,742(2,295)
724
(172)
306
(110)
(547)
－
19
(0)
(8,053)(31,249)
9,645
138
(38)
(848)
(1,535)(12,234)
1,024
110
487
(306)
－
(6,268)(17,187)(4,530)
(922)
(33)
65
(118)
101
－
4
(5,433)(6,011)(1,226)
(33)
23
(117)
142
(6,969)(525)(14,717)

(77)
(78)
0
(6,140)(482)(6,778)317(21,599)
50,651
29,051

13,398(75)(2,156)(6,704)
(595)
3,866
708
(27,330)
47,69020,359(Translated)

ItohamYonekyu Holdings Inc. (2296)(4) Notes on the quarterly consolidated financial statements(Notes on going concern assumptions)Not applicable.
(Notes in the case of significant changes in shareholders' equity)
Not applicable.
(Segment information)
I, The first six months of the previous fiscal year (from April 1, 2021 to September 30, 2021)
1. Information on net sales and profit and loss for each reportable segment
Reportable segments
OthersProcessed Food
Meat Division
Division(Note 1)

Total

Adjustments(Note 2)

Total

(Million Yen)
Amountrecorded on
consolidated
quarterlystatements ofincome(Note 3)

Net sales
175,794
239,872
415,667
2,095
417,762
417,762
Net sales to customers
Intersegment net sales
12,19538,46150,657
14,50365,160(65,160)
or transfers
187,990
278,334
466,324
16,598482,923(65,160)
417,762
Total
7,160
9,857
17,018(24)
16,993(452)
16,540
Segment profit (loss)(Note)
1. "Others" represents a business segment that is not included in the reportable segments such as logistics business and human resourceand payroll related services.
2. The main content of adjustment of segment income (loss) is the amortization of goodwill of -694 million yen.
3. Segment income (loss) is adjusted to ordinary income in the quarterly consolidated statements of income.

II, The first six months of the current fiscal year (from April 1, 2022 to September 30, 2022)
1. Information on net sales and profit or loss for each reportable segment
Reportable segments
OthersProcessed Food
Meat Division
Division(Note 1)

Total

Total

Adjustments(Note 2)

(Million Yen)
Amountrecorded on
consolidated
quarterlystatements ofincome(Note 3)

Net sales
179,797
266,018445,8162,187
448,004
448,004
Net sales to customers
Intersegment net sales
13,672
39,98153,654
14,19667,851(67,851)
or transfers
193,470306,000
499,471
16,384515,855(67,851)
448,004
For the fiscal year ending
4,577
12,25016,827(274)
16,553(392)
16,161(Forecast)(Note)
1. "Others" represents a business segment that is not included in the reportable segments such as logistics business and human resourceand payroll related services.
2. The adjustment to segment income (loss) mainly includes amortization of goodwill of -694 million yen.
3. Segment income (loss) is adjusted to ordinary income in the consolidated statements of income.
2. Matters concerning changes in reportable segments, etc.
Effective from the first quarter of the current fiscal year, following the Group's organizational restructuring, the Company has changed its
reporting segments from product and service-based to organization-based reporting segments. In addition, since the Company's Board of
Directors and other management decision-making bodies have decided to use ordinary income as a management indicator for determining
the allocation of management resources and evaluating business performance, segment income (loss) is now adjusted to ordinary income,whereas it was previously adjusted to operating income in the quarterly consolidated statements of income.
Segment information for the first quarter of the previous fiscal year is presented based on the segment income adjusted for the newclassification method and adjusted to ordinary income.

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