Itoham Yonekyu Holdings Inc.(2296)(Translated)

May 09, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(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
June 23, 2023
Scheduled date for general shareholders' meeting:June 23, 2023
Scheduled date for filing of securities report:
Scheduled date of commencement of dividend payment: June 05, 2023
Supplementary documents for financial results:
Yes
Quarterly results briefing:
Yes (For institutional investors, analysts)(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022–March 31, 2023)(1) Consolidated Results of Operations(% figures show year-on-year change)
Profit (loss)
Net sales
Operating profit
Ordinary profit
attributable to owners
For the fiscal year ended
Million Yen% Million Yen% Million Yen% Million Yen%
922,682
22,994
26,044
16,975 -11.2
March 31, 2023
8.0
-6.6
-8.9
854,374
24,611
28,596
19,118March 31, 2022――――
18,262 million Yen (-16.9%)(Note) Comprehensive income:The fiscal year ended March 31, 2023
21,979 million Yen (―%)
The fiscal year ended March 31, 2022
Profit (loss)
Diluted net income
Net income to
Ordinary profit toOperating profit
per shareper share
shreholder's equity
assetsto net sales
For the fiscal year ended
Yen
Yen
%
%
%
March 31, 2023
58.81
58.79
6.4
6.1
2.5
March 31, 2022
65.34
65.31
7.5
7.1
2.9
439 million Yen(Reference) Equity in income or losses of affiliates:
The Fiscal Year Ended March 31, 2023
605 million Yen
The Fiscal Year Ended March 31, 2022
(Note) As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. has been applied from the beginning 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

As of March 31, 2023
As of March 31, 2022
(Reference) Shareholders’ equity:

Total assets
Net assets
Million Yen
Million Yen
436,763
269,261
413,123
262,740
As of March 31, 2023
As of March 31, 2022

Equity ratio

Net assets per share
%
Yen
61.5
943.4063.4
897.66
268,608 million Yen
262,023 million Yen(3) Consolidated cash flows
From operating
activities
For the fiscal year ended
March 31, 2023
March 31, 2022

From investing
activities

Million Yen
3,947
18,473

Cash and cash
equivalents at the endof fiscal year
Million Yen
Million Yen-6,84422,359-10,653
47,690From finacing
activities

Million Yen-22,926-11,251

2. Dividends
Dividend per shareFirst
quarter-end

Secondquarter-end

Thirdquarter-end

Ratio ofFiscalquarter-end

Total

Total amount
total amount of
Dividendof
dividends topayout ratio
shareholders'
cash dividends(consolidated)
equity(annual)(consolidated)

For the fiscal year ended
March 31, 2022
March 31, 2023
For the fiscal year ending
March 31, 2024
(Forecast)

Yen
－
－

Yen
0.00
0.00

Yen
－
－

Yen
23.00
24.00

Yen
23.00
24.00

－

0.00

－

25.00

25.00

Million Yen
6,713
6,833

%
35.2
40.8
47.5

(Note) Consolidation of shares (combining 5 shares of common stock into 1 share, effective date: October 1, 2023) will be proposed at the Ordinary General
Meeting of Shareholders to be held on June 23, 2023. ,In regard to above dividend per share figure for the fisical year ending March 31,2024 (Forecast), it does not consider the consolidation of shares. Incase of
considering the consolidation of shares, the company plans to issue a year-end dividend of ￥125.00 per share.

%
2.6
2.6

Itoham Yonekyu Holdings Inc.(2296)

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

Operating profit

Million Yen
455,000%
1.6

930,000

0.8

Million Yen%
9,200 -39.2
23,000(% figures show year-on-year change)
Profit (loss)
Ordinary profit
Profit (loss) per share
attributable to owners
Million Yen% Million Yen%
Yen
10,000 -38.1
6,500 -40.4
22.83
25,0000.0

15,000 -11.6

-4.0

52.68

(Note) Consolidation of shares (combining 5 shares of common stock into 1 share, effective date: October 1, 2023) will be proposed at the Ordinary General
Meeting of Shareholders to be held on June 23, 2023.
In regard to above Profit per share figure , it does not consider the consolidation of shares. Incase of considering the consolidation of shares, the second quarter-end(Cumulative) profit per share is ￥114.15 per share and full year profit per share is ￥263.41.

* Notes(1) Changes in significant subsidiaries during the term (changes in specific subsidiaries accompanied by a change in thescope of consolidation):
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:
Year ended March 31, 2023:
287,355,059 sharesYear ended March 31, 2022:
297,355,059 shares(ii) Numbers of treasury shares at end of period:
Year ended March 31, 2023:
2,632,763 sharesYear ended March 31, 2022:
5,458,762 shares(iii) Average number of shares outstanding during period:
Year ended March 31, 2023:
288,618,824 sharesYear ended March 31, 2022:
292,581,811 shares(Reference) Non-Consolidated Financial Results
Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022–March 31, 2023)(1) Non-Consolidated Results of Operations(% figures show year-on-year change)(Translated)
For the fiscal year ended
March 31, 2023
March 31, 2022

Operating revenue

Operating profit

Ordinary profit

Million Yen
28,34521,300

%
33.1
55.0

Million Yen
17,383
15,788Million Yen
17,43315,854

Yen
57.37
49.08

Diluted net income
per share
Yen
57.35
49.05

Profit (loss)
per share
For the fiscal year ended
March 31, 2023
March 31, 2022

%
10.1
56.8

(2) Individual financial position

As of March 31, 2023
As of March 31, 2022
(Reference) Shareholders’ equity:

Total assets
Net assets
Million Yen
Million Yen
242,708
205,609230,345
200,684
As of March 31, 2023
As of March 31, 2022

%
10.0
55.4

net income
Itoham Yonekyu Holdings Inc.(2296)
Million Yen%
16,558 15.3
14,358 39.6(% figures show year-on-year change)
Equity ratio
Net assets per share
%
Yen
84.7
721.8787.1
687.11
205,531 million Yen
200,565 million Yen* 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 “(4) Future outlook”
under “1. Overview of Operations etc.” 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 May 10, 2023.
Explanatory materials for quarterly financial results will be published on TDnet for viewing in Japan and on our website.

Itoham Yonekyu Holdings Inc.(2296)

Contents
1. Overview of Operating Results and Financial Position ................................................................................................................. 2(1) Overview of operating results ................................................................................................................................................ 2(2) Overview of financial position................................................................................................................................................3(3) Overview of cash flows ......................................................................................................................................................... 3(4) Outlook................................................................................................................................................................................ 3
2. Basic Concept for the Selection of Accounting Standards ............................................................................................................. 4
3. Consolidated Financial Statements and Key Notes ....................................................................................................................... 5(1) Consolidated balance sheets .................................................................................................................................................. 5(2) Consolidated statements of income and comprehensive income .............................................................................................. 7(3) Consolidated statement of changes in equity .......................................................................................................................... 9(4) Consolidated statements of cash flows ................................................................................................................................. 11(5) Notes to the consolidated financial statements ...................................................................................................................... 12(Going concern assumptions) ................................................................................................................................................ 12(Segment information) .......................................................................................................................................................... 12(Per share information) ......................................................................................................................................................... 14(Significant subsequent events) ............................................................................................................................................. 15

1

Itoham Yonekyu Holdings Inc.(2296)

1. Overview of Operating Results and Financial Position(1) Overview of operating results
During the fiscal year under review, the Japanese economy showed signs of picking up in transition to post-pandemic phase witheased restrictions, while rising prices continued to pinch businesses and households as impacted by higher resource prices amid
global uncertainties and weakening yen.
In the industry where Itoham Yonekyu Holdings Inc. and its subsidiaries (collectively the "Group") operate, the businessenvironment remained harsh due to rising raw material and energy prices on top of persistently high packaging and logistics costs
along with weakening yen. Besides, the Group should respond to consumer needs and values that are rapidly changing anddiversifying, such as shift in consumer behavior, accelerated digitalization, and growing interest in sustainability.
Facing such environment, the Group has developed “Medium-Term Management Plan 2023” and prioritized the following
policies so far: “strengthening management base”, “strengthening earnings base”, “initiatives for new businesses and markets,”and “initiatives for sustainability.” In terms of “strengthening management base,” we have promoted the strategic-based
reorganization as well as digital strategies, and for “strengthening earnings base,” started restructuring our production and logistics
bases. To take the “initiatives for new businesses and markets,” we are expanding range of non-meat products and strengthening
our healthcare business, and for “initiatives for sustainability,” working on lowering energy and water consumption and waste
emissions by 3%, based on intensity, over three years with fiscal 2021 as a base year, on top of reducing greenhouse gas emissions
to half by fiscal 2030 (compared to fiscal 2016) for reaching net zero by 2050.
In the “Medium-Term Management Plan 2023,” we aim to enhance return on invested capital (ROIC) and increase dividends
steadily around the payout ratio of 40% to maximize shareholder value, by carrying out shareholder return policies while ensuring
financial soundness and capital efficiency. Further, we are pursuing share buybacks and retirements and bought back five billion
yen of shares and retired 10 million treasury shares in the year presented.
As a result of those efforts to cope with changing business environment, the Group recorded consolidated net sales of 922,682
million yen (up 8.0% YoY), operating profit of 22,994 million yen (down 6.6% YoY), ordinary profit of 26,044 million yen (down
8.9% YoY), and profit attributable to owners of parent of 16,975 million yen (down 11.2% YoY) for the fiscal year under review.

The results by reportable segment are outlined below.

<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”, “Pork Bits”, “Gotenba Kogen Arabiki Pork”,
and “Genkei Bacon Block Series”, on top of increased sales of business-use products such as roast beef.
Regarding processed food, net sales increased driven by expanded product range to accommodate more diversified consumer needs
such as pizza products of “La Pizza” and “Pizza Garden”, “Onikuyasan-no-Sozai Series,” “Yonekyu Dango Series,”, and soy-meatproducts of “Marude Oniku! Series,” on top of increased sales of business-use products for restaurants.
As a result, the Processed Food division recorded net sales of 371,165 million yen (up 2.7% YoY) for the fiscal year under review,
whereas ordinary profit was 5,954 million yen (down 52.3% YoY) impacted by rising raw material and energy costs that were notfully covered by raising prices.
<Meat division>
In domestic business, net sales increased driven by higher sales price across the business as well as recovering sales to foodservicebusiness following eased restrictions, despite declined sales volume primarily due to persistently high prices for imported
chicken and beef. Meanwhile, profit decreased due to the added costs of imported chicken and beef that were not fully covered bysales prices as well as surging costs for compound feeds and logistics.
In overseas businesses, both net sales and profits increased driven by ANZCO Foods Ltd.'s efforts to focus on profitability for
procurement and sales in addition to increased sales prices led by strong demand for meat overseas.
As a result, the Meat division recorded net sales of 547,145 million yen (up 11.9% YoY) for the fiscal year under review and ordinary
profit of 21,465 million yen (up 21.7% YoY) reflecting favorable results of ANZCO Foods.

2Itoham Yonekyu Holdings Inc.(2296)(2) Overview of financial position
Total assets at the end of the fiscal year under review were 436,763 million yen, an increase of 23,640 million yen from the endof previous fiscal year. It was mainly due to increases in accounts receivable-trade, inventories, and non-current assets as well as
decreases in cash and deposits.
Liabilities were 167,501 million yen, an increase of 17,118 million yen from the end of previous fiscal year. It was mainly due toincreases in short-term borrowings and accounts payable for trade.
Net assets were 269,261 million yen, an increase of 6,521 million yen from the end of previous fiscal year. It was mainly due to anincrease in retained earnings.

(3) 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 decreased
by 25,330 million yen from the end of previous fiscal year (a decrease of 2,961 million yen in the previous year) to 22,359 million
yen.
◇ Cash flows from operating activities
Operating activities increased Funds by 3,947 million yen (an increase of 18,473 million yen in the previous year). The increase
was mainly due to profit before income taxes, which was partially offset by an increase in inventories and payments of income
taxes.
◇ Cash flows from investing activities
Investing activities decreased Funds by 22,926 million yen (a decrease of 11,251 million yen in the previous year). The decrease
was mainly due to purchase of property, plant and equipment and payments for acquisition of business.
◇ Cash flows from financing activities
Financing activities decreased Funds by 6,844 million yen (a decrease of 10,653 million yen in the previous year). The decrease
was mainly due to payment of dividends and repurchase of shares, while the increase was mainly due to increased short-termborrowings.

(4) Outlook

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

Profit per share(Million Yen)

Profitattributable toowners of parent(Million Yen)

23,00025,00015,00052.68

22,994

26,044

16,975

58.81

0.0

-4.0

-11.6

Net sales

Operating profit

Ordinary profit(Million Yen)

(Million Yen)

930,000
922,682
0.8(Yen)

As for the outlook going forward, we assume that the economic situation will remain unpredictable amid inflation, financial
uncertainties in the US and Europe, moving exchange rates, and so forth, even though our economy is showing signs of recovery
with new policies to better cope with COVID-19.
In our industry as well, we expect that raw material and energy costs will remain high and the business environment will continue
to be challenging.
Under these circumstances, the Group will continue to strengthen its management and earnings bases in line with the “MediumTerm Management Plan 2023” and adapt to changing business environment and demonstrate its strengths. Further, the Group willkeep enhancing its competitiveness and growth potential by responding to new market needs and taking the socially andenvironmentally friendly initiatives.
Based on the above, for the next year ending March 31, 2024, we expect consolidated net sales of 930.0 billion yen, operating profitof 23.0 billion yen, ordinary profit of 25.0 billion yen, and profit attributable to owners of parent of 15.0 billion yen.
Meanwhile, we plan to submit a proposal for a share consolidation (1-for-5 shares of common stocks to be effective October 1,2023) to the Ordinary General Meeting of Shareholders on June 23, 2023. The above profit per share does not reflect the shareconsolidation, and it would be 263.41 yen on post-consolidation basis.

3

Itoham Yonekyu Holdings Inc.(2296)

2. Basic Concept for the Selection of Accounting Standards
For the time being, the Group prepares its consolidated financial statements in accordance with Japanese GAAP, considering thecomparability of the consolidated financial statements between periods and the comparability among companies. The Group will
respond appropriately to the application of International Financial Reporting Standards (IFRS), considering various conditionsin Japan and overseas.

4

Itoham Yonekyu Holdings Inc.(2296)

3. Consolidated Financial Statements and Key Notes(1) Consolidated balance sheets(Million Yen)
As of March 31, 2022
ASSETS
Current assets
Cash and deposits
Notes receivable-trade
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture & fixtures
Accumulated depreciation
Tools, furniture & fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Others
Accumulated depreciation
Others, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Investments and other assets
Total non-current assets
Total Assets

5

As of March 31, 2023

47,991
83
88,92474,814
1,713
19,037
10,848(7)
243,405

22,736
81
95,24197,801
2,020
22,92015,681(20)
256,463

104,678(68,425)
36,252
129,928(101,653)
28,274
7,264(5,733)
1,530
26,017
6,171(3,683)
2,487
2,244
238
(44)
193
97,000108,063(71,127)
36,935
135,652(106,560)
29,091
7,546(6,092)
1,454
26,368
6,873(4,075)
2,797
4,640
245
(59)
185
101,472

18,158
3,955
22,114

18,286
8,555
26,842

29,5981,352
667
14,7224,354(93)
50,602
169,717413,123

30,302
1,202
706
15,3074,552(88)
51,984
180,299
436,763

Itoham Yonekyu Holdings Inc.(2296)(Million Yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of Long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Accrued consumption taxes
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
Lease liabilities
Deferred tax liabilities
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

6

As of March 31, 2022

As of March 31, 2023

62,351
1,747
24,407144
752
22,609
2,891
904
6,617
151
329
3,627
126,533

66,978
1,991
32,062
10,126871
23,461
5,024
1,059
6,163
161
329
4,710
152,941

10,572
1,975
5,143
1,706
1,490
2,961
23,849150,383

446
2,166
5,703
1,653
1,469
3,121
14,560167,501

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

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

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

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

Itoham Yonekyu Holdings Inc.(2296)(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Million Yen)
The Fiscal Year Ended
The Fiscal Year Ended
March 31, 2022
March 31, 2023
(Apr 1, 2021 - Mar 31, 2022） (Apr 1, 2022 - Mar 31, 2023）

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating Income
Interest income
Dividend income
Rental income
Insurance claim 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
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
Loss on valuation of investment securities
Impairment loss
Loss on tax purpose reduction entry of non-current assets
Temporary expenses of human resource system reforms
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

7854,374
722,470
131,904
107,292
24,611

922,682
792,556
130,126
107,131
22,994

43
439
433
325
1,880
605
900
4,628

102
378
454
214
1,842
439
847
4,279

318
137
187
644
28,596

799
138
291
1,229
26,044

5
57
134
906
24
1,128

61
35
97

449
3
115
904
38
1,510
28,213
8,374
672
9,047
19,16648
19,118

480
3
327
335
30
1,177
24,964
7,640
303
7,944
17,01944
16,975

Itoham Yonekyu Holdings Inc.(2296)

Consolidated statements of comprehensive income(Million Yen)
The Fiscal Year Ended
March 31, 2022
(Apr 1, 2021 - Mar 31,
2022）

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

8

The Fiscal Year Ended
March 31, 2023
(Apr 1, 2022 - Mar 31,
2023）

19,166

17,019

(612)
480
1,490
457

(21)
(980)
2,083
(744)

995

905

2,812
21,9791,242
18,262

21,92949

18,17784

Itoham Yonekyu Holdings Inc.(2296)(3) Consolidated statement of changes in equity
Year Ended March 31, 2022 (Apr. 1, 2021 - Mar. 31, 2022)(Million Yen)
Shareholders’ equity

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Balance at beginning of
periodafter
retrospective adjustment
Changes during period
Dividends
fromsurplusProfit attributable toowners of parent
Repurchase of shares
Disposal of treasury
sharesNet changes in items
other
than
shareholders’ equity
Total changes during
periodBalance at end of period

Capitalstock

CapitalsurplusRetainedearnings

30,00396,624

116,989

Total
Treasuryshareholders
shares’ equity(3,624)(155)
30,00396,624

239,992(155)

116,834(3,624)

239,837(6,147)(6,147)

19,118

19,118

(9)

(649)

(649)

124

114

-

(9)

12,970(525)

12,43630,00396,615

129,805(4,150)252,273

Accumulated other comprehensive income
Valuation
Total
Share
difference Deferred
Foreign Remeasureaccumulated acquisition Noncontrolli Total net
ongains orcurrency
ments ofng interests
assetsotherrightsavailable- losses on translation
definedcomprehensi
for-salehedgesadjustment benefit plans
ve incomesecurities
Balance at the beginningof the period
Cumulative effects ofchanges in accounting
policies
Balance at beginning of
periodafter
retrospective adjustment
Changes during period
Dividends
fromsurplusProfit attributable toowners of parent

7,298

(329)

(3,073)

3,042

6,939

131

585

(155)
7,298

(329)

(3,073)

3,042

6,939

131

585

247,492(6,147)
19,118

Repurchase of shares
Disposal of treasury
sharesNet changes in items
other
than
shareholders’ equity
Total changes during
periodBalance at end of period

247,648

(649)
114
(571)

480

2,388

513

2,810

(13)

13

2,811

(571)

480

2,388

513

2,810

(13)

13

15,247

6,727

151

(684)

3,556

9,750

118

598

262,7409

Itoham Yonekyu Holdings Inc.(2296)
Year Ended March 31, 2023 (Apr. 1, 2022 - Mar. 31, 2023)(Million Yen)
Shareholders’ equity

Balance at the beginningof the period
Changes during period
Dividends
fromsurplusProfit attributable toowners of parent
Repurchases of shares
Disposal of treasury
sharesRetirement of treasury
sharesNet changes in items
other
than
shareholders’ equity
Total changes during
periodBalance at end of period

Capitalstock

CapitalsurplusRetainedearnings

30,00396,615

129,805

Total
Treasuryshareholders
shares’ equity(4,150)252,273(6,713)(6,713)

16,975

16,975(5,000)(5,000)

(8)

130

121

(7,179)

7,179

-

-

(7,187)

10,261

2,309

5,382

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

257,655

Accumulated other comprehensive income
Valuation
Total
Share
difference Deferred
Foreign Remeasureaccumulated acquisition Noncontrolli Total net
ongains orcurrency
ments ofng interests
assetsotherrightsavailable- losses on translation
definedcomprehensi
for-salehedgesadjustment benefit plans
ve incomesecurities
Balance at the beginningof the period
Changes during period
Dividends
fromsurplusProfit attributable toowners of parent
Repurchases of shares
Disposal of treasury
sharesRetirement of treasury
sharesNet changes in items
other
than
shareholders’ equity
Total changes during
periodBalance at end of period

6,727

151

(684)

3,556

9,750

118

598

262,740(6,713)
16,975(5,000)
121
(19)

(980)

2,922

(720)

1,202

(41)

(22)

1,139

(19)

(980)

2,922

(720)

1,202

(41)

(22)

6,521

6,708

(828)

2,237

2,835

10,952

77

576

269,26110

Itoham Yonekyu Holdings Inc.(2296)(4) Consolidated statements of cash flows(Million Yen)
The Fiscal Year Ended
March 31, 2022
(Apr 1, 2021 - Mar 31,
2022）

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in provision for bonuses
Amortization of goodwill
Interest and dividend income
Interest expenses
Insurance claim income
Subsidy income
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
Repayments of lease liabilities
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

11

The Fiscal Year Ended
March 31, 2023
(Apr 1, 2022 - Mar 31,
2023）

28,213
11,474
115
219
1,428
(482)
318
(460)
(1,880)(605)(53)(1,682)(12,345)
5,420
469
(82)
(1,817)(1,521)
26,727
1,136
464
1,749
(318)
(60)
(11,226)
18,47324,964
12,187
327
(453)
1,519
(480)
799
(214)
(1,842)(439)(32)(5,418)(22,163)
4,218
(515)
(43)
(1,685)(354)
10,372
1,331
214
1,956
(799)
(9,128)3,947(9,039)(2,189)
(169)
106
(236)
419
(143)
(11,251)(12,444)(2,775)
(64)
98
(233)
388
(7,125)(770)(22,926)(2,795)(155)(649)(6,144)(872)(36)(10,653)471(2,961)50,65147,6906,099(144)(5,000)(6,710)(981)(107)(6,844)
492(25,330)
47,69022,359

Itoham Yonekyu Holdings Inc.(2296)(5) Notes to the consolidated financial statements(Going concern assumptions)Not applicable.
(Segment information)
1.

Overview of reportable segments and their changes etc.

The Group's reportable segments are component units of the Group for which discrete financial information is available andwhich are subject to regular review by the Board of Directors to decide the allocation of management resources and to assess
the performance.
The Group has two reportable segments: the "Processed Food division," which is mainly engaged in the production and sale ofham, sausage, and processed foods, and the "Meat division," which is primarily engaged in the production, processing, and saleof meat.
Since the first quarter of the year presented, those reportable segments have changed from product and service-based toorganization-based in response to the Group's organizational restructuring. In addition, the Board of Directors and othermanagement decision-making bodies adopted ordinary profit as a new management indicator used to allocate resources andevaluate business performance. Consequently, segment profit (loss) is now adjusted with ordinary profit instead of previously
used operating profit, and segment results for the previous year ended March 31, 2022, are restated below to align with the new
structure and ordinary profit.
2.

Calculation method of net sales, profit or loss, assets, and other items by reportable segments

The accounting methods used for the reported business segments are generally the same as those used to prepare the consolidated
financial statements. Profit by reportable segment is based on ordinary profit. Intersegment sales and transfers are based onmarket prices.
3.

Information on net sales, profit or loss, assets and other items, for each reportable segment
For the Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Million Yen)
Reportable segments
Processed Meat division
food division

Others(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)Total

Net salesSales
tooutsidecustomers
Intersegment sales andtransfers

361,297

488,855

850,1534,221

854,374-

854,374

25,031

78,519103,550

29,211

132,761(132,761)-

386,328

567,375

953,70333,432

987,136(132,761)

854,374

Segment profit (loss)

12,495

17,63230,127(635)

29,491(895)

28,596

Segment assets

117,728

162,040

279,769

2,302

282,072

131,051

413,123

6,812

4,223

11,035277

11,312

33

11,345

Amortization of goodwill

-

39

39

-

39

1,389

1,428

Increase in property, plantandequipment
andintangible assets

6,001

5,094

11,09540

11,136582

11,719Total

Other items
Depreciation

Notes:

1. "Others" includes the logistics business and personnel and payroll-related operations, etc. that are not included in reportablesegments.

2. Adjustments are as follows.
(1) Adjustment on segment profit is mainly due to the amortization of goodwill of -1,389 million yen.
(2) Adjustment on segment assets of 131,051 million yen includes corporate assets that are not allocated to each reportablesegment. Corporate assets are mainly consisted of cash and deposits of 47,795 million yen, investments and other assets of
50,079 million yen, and goodwill of 18,057 million yen.
(3) Adjustment on increase in property, plant and equipment and intangible assets of 582 million yen is mainly due to anincrease in corporate assets that are not allocated to each segment.
3. Segment profit is adjusted with ordinary profit as reported in the consolidated statements of income.

12

Itoham Yonekyu Holdings Inc.(2296)
For the Year Ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million Yen)
Reportable segments
Processed Meat division
food division

Total

Others(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)

Net salesSales
tocustomers

outside371,165

547,145918,310

4,371

922,682-922,682

Intersegment sales andtransfers

26,62380,977

107,601

28,951

136,552(136,552)

-

Total

397,788628,123

1,025,912

33,323

1,059,235(136,552)

922,682

5,954

21,46527,420(645)

26,775(730)

26,044

131,671

195,333

327,004

2,198

329,202

107,560

436,763

6,868

4,904

11,773264

12,03733

12,070

Amortization of goodwill

-

130

130

-

130

1,389

1,519

Increase in property, plantandequipment
andintangible assets

9,504

7,170

16,67536

16,712700

17,412

Segment profit (loss)
Segment assets
Other items
Depreciation

Notes:

1. "Others" includes the logistics business and personnel and payroll-related operations, etc. that are not included in reportablesegments.

2. Adjustments are as follows.
(1) Adjustment on segment profit is mainly due to the amortization of goodwill of -1,389 million yen.
(2) Adjustment on segment assets of 107,560 million yen includes corporate assets that are not allocated to each reportablesegment. Corporate assets are mainly consisted of cash and deposits of 22,464 million yen, investments and other assets
of 51,266 million yen, and goodwill of 16,668 million yen.
(3) Adjustment on increase in property, plant and equipment and intangible assets of 700 million yen is mainly due to an increasein corporate assets that are not allocated to each segment.
3. Segment profit is adjusted with ordinary profit as reported in the consolidated statements of income.

13

Itoham Yonekyu Holdings Inc.(2296)(Per share information)
Year Ended March 31, 2022
(Apr. 1, 2021 - Mar. 31, 2022)

Year Ended March 31, 2023
(Apr. 1, 2022 – Mar. 31, 2023)

Net assets per share

897.66 yen

943.40 yen

Profit per share

65.34 yen

58.81 yen

Diluted net income per share

65.31 yen

58.79 yen

(Note) 1. The basis for calculation of net assets per share is as follows.
As of March 31, 2022
Total net assets (Million Yen)

As of March 31, 2023

262,740

269,261717

653(Share acquisition rights (Million Yen))

(118)

(77)

(Non-controlling interests (Million Yen))

(598)

(576)

262,023

268,608

291,896284,722Amount deducted from total net assets (Million Yen)

Net assets related to common shares at the end of theperiod (Million Yen)
Number of common shares at the end of the period usedin the calculation of net assets per share (Thousand
Shares)2. The basis for calculation of profit per share and diluted net income per share is as follows.
Year Ended March 31, 2022
(Apr. 1, 2021 - Mar. 31, 2022)

Year Ended March 31, 2023
(Apr. 1, 2022 – Mar. 31, 2023)

19,118

16,975--

Profit attributable to owners of parent related tocommon shares (Million Yen)

19,118

16,975

Average number of common shares during the period(Thousand Shares)

292,581

288,618--

Increase in common shares (Thousand Shares)

163

113

(Share acquisition rights (Thousand Shares))

(163)

(113)

-

-

Profit per share
Profit attributable to owners of parent (Million Yen)
Amount not attributable to common shareholders(Million Yen)

Diluted net income per share
Adjustments of profit attributable to owners of parent(Million Yen)

Outline of anti-dilutive potential shares excluded from thecalculation of diluted net income per share14

Itoham Yonekyu Holdings Inc.(2296)(Significant subsequent events)
The Company has resolved at the Board of Directors held on April 21, 2023, to submit a proposal for a share consolidation to the
7th Ordinary General Meeting of Shareholders scheduled on June 23, 2023.
1. Purpose of the share consolidation
The Company has issued 287,355,059 shares of common stock in total as of March 31, 2023, which is more than that of its
comparable companies listed on the Tokyo Stock Exchange. The said share consolidation (“Share Consolidation”) is intended to
improve such situation.
Share Consolidation is expected to make it easier to compare per-share indicators (e.g., earnings, net asset value) and stock
price with other companies. Also, as it is set in the dividend policy “to stably increase the payout ratio in the range of 30% to 50%,
with a target of 40%”, the Company believes that Share Consolidation will enhance flexibility in implementing the shareholder
return policy, such as enabling more detailed setting of dividend per share and considering interim dividend.
A unit of shares will remain unchanged as the current 100 shares, since trading unit of all domestic listed companies is unified
as 100 shares on Japanese stock exchanges.
2. Details of Share Consolidation(1) Type of shares subject to Consolidation
Common Stock(2) Consolidation ratio
Five shares will be consolidated into one share.
(Based on the number of shares held by shareholders listed or recorded in the shareholder register as of September 30, 2023)(3) Effective date
October 1, 2023
(4) Total number of authorized shares as of the effective date
200,000,000 shares
As of the effective date, the Articles of Incorporation stipulating the authorized shares will be amended as follows pursuant
to Article 182, Paragraph 2 of Japan’s Companies Act.
(The underlined indicates amendments)
Current Articles of Incorporation

After amendment

Article 6 (Total number of authorized shares)
The total number of authorized shares of the Company shallbe one billion.

Article 6 (Total number of authorized shares)
The total number of authorized shares of the Company shallbe two hundred million.

(5) Number of shares to be reduced by Consolidation(1) Total number of shares outstanding before
Consolidation (as of March 31, 2023)

287,355,059 shares(2) Number of shares to be reduced by Consolidation

229,884,048 shares(3) Total number of shares outstanding after Consolidation

57,471,011 shares(Note) “Number of shares to be reduced by Consolidation” and “Total number of shares outstanding after the Consideration”
are theoretical figures based on the total number of issued shares before Consolidation and the Consolidation ratio.
3. Effects on per share information
Per share information assuming that Share Consolidation occurred as of the beginning of the fiscal year ended March 31, 2023,
would be as follows.
Net assets per share

4,717.02 yen

Profit per share

294.07 yen

Diluted net income per share

293.96 yen

15