(Translated)

November 02, 2023

Consolidated Financial Results
for the Six Months Ended September 30, 2023 (Q2 FY2023)(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 Chief Executive Officer
Masaru Kato, General Manager, Public &Investor Relations OfficeTel. +81-3-5723-6889
November 14, 2023
Scheduled date for filing of securities report:
Scheduled date of commencement of dividend payment: －Supplementary documents for financial results:
Yes
Quarterly results briefing:Yes
For institutional investors and analysts(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023–September 30, 2023)(1) Consolidated Results of Operations(% figures show year-on-year change)
Profit attributable toowners of parent
Million Yen% Million Yen% Million Yen% Million Yen%
470,141
10,580 (30.1)
12,298 (23.9)
7,589 (30.4)
4.9
448,004
15,13816,161
10,905
7.2
4.5
(2.3)
(7.7)
13,473 million Yen
Six months ended September 30, 2023
15,557 million Yen
Six months ended September 30, 2022
ProfitDiluted profit
per shareper shareYen
Yen
133.25133.20187.61
187.53
Net sales

Six months ended
September 30, 2023
September 30, 2022
(Note) Comprehensive income:Six months ended
September 30, 2023
September 30, 2022

Operating profit

Ordinary profit(13.4) %26.8 %(Note) As the effective date on October 1 2023, we have completed a share consolidation (combining 5 shares of common stock into 1 share).
In regard to above Profit per share and Diluted profit per share, it shows on the assumption of the share consolidation be carried out
at the beginning of previous fiscal year.

(2) Consolidated financial position
Total assets
Net assets
Million Yen
Million Yen
479,173
275,422436,763
269,261
As of September 30, 2023
As of March 31, 2023

As of September 30, 2023
As of March 31, 2023
(Reference) Shareholders’ equity:

Equity ratio
%
57.3
61.5
274,755 million Yen
268,608 million Yen

2. Dividends
Dividend per shareFirst
quarter-end

Secondquarter-end

Yen

Yen
0.00
0.00

For the fiscal year ended
March 31, 2023
March 31, 2024
For the fiscal year ending
March 31, 2024
(Forecast)

―
―

Third
quarter-end

Fiscalyear-end

―

Yen

Yen
24.00

―

125.00

Total
Yen
24.00

―

(Note) Changes to most recent dividend forecast : None
(Note) As the effective date on October 1 2023, we have completed a share consolidation (combining 5 shares of common stock into 1 share).
In regard to above Dividend per share figure for the fiscal year ending March 31, 2024 (Forecast), it shows after a share consolidation be caried out.
The forecast for the Total annual divident is shown as "－ en dush " because simple sum is not appropriate.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)
Net Sales
Full year

Million Yen
930,000%
0.8(% figures show year-on-year change)
Profit attributable toProfit per shareowners of parent% Million Yen%
Yen
15,000 (11.6)
263.37(4.0)

Operating profit

Ordinary profit

Million Yen
23,000Million Yen
25,000%0.0(Note) Changes to most recent financial results forecast : None
(Note) As the effective date on October 1 2023, we have completed a share consolidation (combining 5 shares of common stock into 1 share).
In regard to above Profit per share , it shows after a share consolidation be caried out.

(Translated)* 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 quterly consolidation financial atatements:
None

(3)

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

None
None
None
None

(4) Numbers of shares outstanding (common stock)(i)
Numbers of issued shares at end of period:
57,471,011 shares
As of September 30, 2023 :
57,471,011 shares
As of March 30, 2023 :(ii) Numbers of treasury shares at end of period:
505,333 shares
As of September 30, 2023 :
526,552 shares
As of March 30, 2023 :(iii) Average number of shares outstanding during period:
56,953,961 shares
As of September 30, 2023 :
58,126,307 shares
As of September 30, 2022 :(Note) As the effective date on October 1 2023, we have completed a share consolidation (combining 5 shares of common stock into 1 share).
In regard to above (i) to (iii), it shows on the assumption of the share consolidation be carried out at the beginning ofthe previous fiscal year.

* This Summary of Consolidated Financial Results is outside the scope of the external audit.
* Explanation for using the forecasted information 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) Outlook”
under “1. Overview of Operating Results and Financial Position” on page “3”.
(Access to Supplementary Explanations)
Explanatory materials for quarterly financial results will be published on TD-net for viewing in Japan and on our website.
We plan to hold a briefing for institutional investors and analysts via web conference on Wednesday November 8, 2023.

(Translated)

Itoham Yonekyu Holdings Inc.

Contents

1. Overview of Operating Results and Financial Position ………………………………………………………………………………………………………
2(1) Overview of operating results ………………………………………………………………………………………………………………………
2(2) Overview of financial positions ………………………………………………………………………………………………………………………
3(3) Outlook …………………………………………………………………………………………………………………………………………………
3

2. Consolidated Financial Statements and Key Notes …………………………………………………………………………………………………………
4(1) Consolidated balance sheets ……………………………………………………………………………………………………………………………
4(2) Consolidated statements of income and comprehensive income …………………………………………………………………………………………
6(3) Consolidated statements of cssh flows …………………………………………………………………………………………………………………
8(4) Notes on the consolidated financial statements …………………………………………………………………………………………………………
9(Notes on going concern assumptions) ……………………………………………………………………………………………………………………
9(Notes in the case of significant changes in shareholders' equity) ………………………………………………………………………………………
9(Segment information) ……………………………………………………………………………………………………………………………………
91

(Translated)

Itoham Yonekyu Holdings Inc.

1. Overview of Operating Results and Financial Position(1) Overview of operating results〇Domestic economic situation
The Japanese economic activities show slow recovery trend due to improvements of employment income enviroment and recoveryof personal consumption.
On the other hand, rising resource prices and trends of financials/ foreign exchange markets affect domestic economy and prices asa background of global uncertainties.
〇Our industry situation (Meat Processing industry)
The business environment remained harsh due to rising raw material prices and logistics costs on top of persistently high utility andpackaging along with weakening yen. Besides, the Group should respond to consumer needs and values that are rapidly changing
and diversifying, such as shift in consumer behavior, accelerated digitalization, and growing interest in sustainability.

〇Our operating results and overview◇Consolidated operating results
Net sales

Operating profit

Million Yen
470,141%

Million Yen%

4.9

10,580(30.1)(% figures show year-on-year change)
Profit attributable toOrdinary profit
owners of parent
Million Yen%
Million Yen%

12,298(23.9)

7,589(30.4)

We implement the following measures based on the four priority policies and financial strategies of the Medium-Term
Management Plan 2023.
Priority policies

Main measures

Strengthen management
base

Strategic-based reorganization , Promotion of digital strategy

Strengthen earnings baseReorganization of production and logistics bases, Enhancement of WAGYU exports

Initiatives for new
businesses and markets

Strengthen Frozen foods, Expanding rage of Non-meat products, Strengthening Healthcare
business

Initiatives forsustainability

Identification of Materiality, Setting of KPIs, and Promotion of initiatives achievement

In terms of financial strategy, we aim to enhance return on invested capital (ROIC) and increase dividends steadily around the payout
ratio 40% to maximize shareholder value, by carrying out shareholder return policies while ensuring financial soundness and capitalefficiency. Then we have set 2 billion yen limit for the acquisition of treasury stock for this fiscal year.

(% figures show year-on-year change)◇Operating results by reportable segment
Net Sales
Ordinary profit
Million Yen%
Million Yen%
Processed Food Division

190,517

4.7

3,510

(16.3)

Meat Division279,617

5.1

9,549

(24.4)<Processed Food Division>
・ Regarding Hams and Sausages, net sales increased driven by TV commercials and consumer campaigns to expand sales of the main
products for consumer products such as “The Grand Alt Bayern”, “Asano Fresh Series”, and “Gotenba Kogen Arabiki Pork”, on top of
stable sales of business-use products.
・ Regarding Cooked foods, net sales increased driven by expanded product range to accommodate more diversified consumer needs suchas pizza products of “La Pizza” and “Pizza Garden”, “Onikuyasan-no-Sozai Series”, and soy-meat products of “Marude Oniku! Series”,
on top of increased sales of business-use products.
・ Net sales of the Processed food division increased, but ordinary profit decreased, because the price revisions were unable to cover theincrease in costs due to rising raw material prices and logistics costs.
<Meat Division>・ In domestic business, net sales amount increased driven by increasing sales volume due to recovering foodservice demand. The profits
increased as a result of value chain management connected with imported beef and imported chicken mainly, despite the impact ofremaining high compound feed prices and rising logistics costs including storage fees.
・ In overseas business, under the situation of the global beef demand dropped comparison with previous year, therefore ANZCO Foods
decreased the sales prices and sales volume of beef products.
・ Net sales of Meat Division increased, but ordinary profit declined due to the impact of the decrease in overseas business profit.

2

(Translated)

Itoham Yonekyu Holdings Inc.

(2) Overview of financial positions(Assets, liabilities and net assets)
・ Total assets was 479,173 million yen, an increase of 42,410 million yen from the end of the previous consolidated fiscal year.
Increase factors: Increase in Inventories, and Accounts receivable-trade
・ Liabilities was 203,750 million yen, an increase of 36,249 million yen from the end of the previous consolidated fiscal year.
Increase factors: Increase in Accounts payable - trade, and Short-term borrowings
・ Net assets was 275,422 million yen, an increase of 6,161 million yen from the end of the previous consolidated fiscal year.
Increase factors: Increase in Foreign currency translation adjustment(Cash flows)
The balance of cash and cash equivalents at end of period was 24,882 million yen, an increase of 2,522 million yen from the end of theprevious consolidated fiscal year (A decrease of 27,330 million yen in the same quarter of the previous year).
◇Cash flows from operating activities
Cash flows from operating activities decreased by 4,936 million yen (A decrease of 17,187 million yen in the same quarter of theprevious year).
Decrease factors: Increase in Inventories and Ttrade receivables
Increase factors: Increase in Trade payables◇Cash flows from investing activities
Cash flows from investing activities decreased by 8,847 million yen (A decrease of 14,717 million yen in the same quarter of theprevious year).
Decrease factors: Acquisition of tangible fixed assets◇Cash flows from financing activities
Cash flows from financing activities increased by 15,902 million yen (An increase of 3,866 million yen in the same quarter of theprevious year).
Increase factors: Increase in Short-term borrowings
Decrease factors: Dividends paid(3) Outlook
There are no changes to the consolidated results forecasts for the full year of the fiscal year ending March 31, 2024 that were announced on
May 9, 2023.

3

(Tranlated)

Itoham Yonekyu Holdings Inc.

Consolidated Financial Statements and Key Notes(1) Consolidated balance sheets(Million Yen)
As of March 31, 2023
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, 2023

22,736
95,32397,801
2,020
22,92015,681(20)
256,463

25,189113,150
108,616
2,067
31,826
12,781(21)
293,60936,93529,091
1,454
26,368
2,797
4,825
101,472

37,24728,803
1,436
26,731
2,830
6,023
103,071

18,286
8,555
26,842

17,562
9,244
26,80730,302
15,3076,462(88)
51,984
180,299
436,763

32,065
17,144
6,644(169)
55,684
185,564
479,183

(Tranlated)

Itoham Yonekyu Holdings Inc.

(Million Yen)

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 shareholders' 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 March 31, 2023

As of September 30, 2023

66,978
1,991
32,062
10,126
5,024
6,163
161
329
30,103
152,941

79,115
1,915
56,798
10,118
2,584
4,431
81
33,231
188,276

446
1,653
1,469
10,991
14,560167,501

390
1,665
1,462
11,955
15,473203,750

30,00389,427140,066(1,841)
257,655

30,00389,430140,822(1,767)
258,488

6,708
(828)
2,237
2,835
10,952
77
576
269,261436,763

7,366
(291)
5,618
3,574
16,26777589
275,422479,173

(Tranlated)

Itoham Yonekyu Holdings Inc.

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Million Yen)

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
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
Gain on reversal of provision incurred from businesscombination
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on disaster
Loss on closing plants
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 - Spt 30, 2022）

Six Months Ended
September 30, 2023
(Apr 1, 2023 - Spt 30, 2023）

448,004
380,396
67,60752,46915,138470,141
405,179
64,961
54,381
10,580

36
136
231
547
562
1,514

125
151
225
1,678
551
2,732

306
73

792
69

19

128

92
491
16,16124
1,014
12,298

4
0

1
1

-

550

4

552

127
127
16,038
4,625
478
5,104
10,93428
10,905

99
248
823
6
1,178
11,673
3,636
425
4,061
7,611
22
7,589

(Tranlated)

Itoham Yonekyu Holdings Inc.

Consolidated statements of comprehensive income(Million Yen)
Six Months Ended
Six Months Ended
September 30, 2022
September 30, 2023
(Apr 1, 2022 - Spt 30, 2022） (Apr 1, 2023 - Spt 30, 2023）

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 comprehensive 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

10,934

7,611

58
(65)
3,004
(183)

764
536
2,213
678

1,809

1,147

4,623
15,557

5,340
12,957

15,48373

12,90447

(Tranlated)

Itoham Yonekyu Holdings Inc.

(3) Consolidated statements of cash flows(Million Yen)
Six Months Ended
Six Months Ended
September 30, 2022
September 30, 2023
(Apr 1, 2022 - Spt 30, 2022） (Apr 1, 2023 - Spt 30, 2023）

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
Loss on disaster
Gain on reversal of provision incurred from businesscombination
Loss on closing plants
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
Acquisition of tangible assets
Acquisition of intangible assets
Acquisition 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

16,0385,742(2,295)
724
(172)
306
(110)
(547)
-

11,673
5,904(1,732)
797
(277)
792
(222)
(1,678)
248

-

(550)

19
(0)
(8,053)(31,249)
9,645
138
(38)
(848)
(1,535)(12,234)
1,024
110
487
(306)
(6,268)(17,187)823
128
3(17,128)(18,201)
11,568
5,216
4
(824)
1,137
(2,317)
844
221
828
(792)
(577)
(3,143)(4,936)(6,011)(1,226)
(33)
23
(117)
142
(6,969)(525)(14,717)(7,704)(1,020)
(32)
49
(118)
97
(70)
(46)
(8,847)

13,398(75)(2,156)(6,704)
(595)
3,866
708
(27,330)
47,69020,35923,323(64)(0)(6,823)(532)
15,902403
2,522
22,35924,882

(Tranlated)

Itoham Yonekyu Holdings Inc.

(4) Notes on the 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, Six Months Ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
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
181,950
266,047447,9976
448,004
Net sales to customers
Intersegment net sales
13,672
39,98153,654409
54,064(54,064)
or transfers
195,622
306,029
501,652416
502,069(54,064)
Total
4,194
12,638
16,83328
16,861(700)
Segment profit (loss)(Note)
1. "Others" segment which is not included in the reportable segments such as human resource and payroll related services.
2. The main content of adjustment of segment profit (loss) is the amortization of goodwill of (694) million yen.
3. Segment profit (loss) is adjusted to ordinary profit in the quarterly consolidated statements of income.

448,004
448,004
16,161

II, Six Months Ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
1. Information on net sales and profit or 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
190,517279,617
470,134
6
470,141
Net sales to customers
Intersegment net sales
18,90634,932
53,839443
54,282(54,282)or transfers
209,423
314,550
523,973450
524,423(54,282)
Total
3,510
9,549
13,060(173)
12,886(587)
Segment profit (loss)(Note)
1. "Others" segment which is not included in the reportable segments such as human resource and payroll related services.
2. The main content of adjustment of segment profit (loss) is the amortization of goodwill of (694) million yen.
3. Segment profit (loss) is adjusted to ordinary profit in the quarterly consolidated statements of income.

470,141
470,141
12,298

2. Note for changes in reportable segments, etc.
From this first quarter, the segment of logistics business have changed from "Other" to "Processed Food Division" and "Meat Division"according to Group's organizational changes.
Previous year segment information show by after changing of logistics business.

9