(Translated)

ItohamYonekyu Holdings Inc. (2296)
February 03, 2023

Consolidated Financial Results
for the Nine Months Ended December 31, 2022 (Q3 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 Chief Executive Officer
Masaru Kato, General Manager, Public &Investor Relations OfficeTel. +81-3-5723-6889
February 14, 2023
Scheduled date for filing of securities report:
Scheduled date of commencement of dividend payment: Supplementary documents for quarterly results:
Yes
Quarterly results briefing:No(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 1, 2022–December 31, 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%
701,596
23,91726,011
17,754
7.0
3.4
(2.9)
(4.5)
655,708
23,135
26,796
18,582－－－－
19,917 million Yen (6.9%)
Nine months ended December 31, 2022
18,627 million Yen (－%)
Nine months ended December 31, 2021
Diluted net income
Profit (loss)
per shareper share
Yen
Yen
61.30
61.27
63.46
63.43
Net sales

Nine months ended
December 31, 2022
December 31, 2021
(Note) Comprehensive income:Nine months ended
December 31, 2022
December 31, 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 third 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
476,747
272,185
413,123
262,740
As of December 31, 2022
As of March 31, 2022

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

Equity ratio
%
57.0
63.4
271,536 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
900,000

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

Million Yen%
22,000 (10.6)(% 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)
51.79
Ordinary income

ItohamYonekyu Holdings Inc. (2296)(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 quarterly consolidated financial statements:
None

(3)

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

(4) Numbers of shares outstanding (common stock)(i)
Numbers of issued shares at end of period:
292,355,059 shares
Nine Months Ended December 31, 2022:
297,355,059 sharesYear ended March 31, 2022:(ii) Numbers of treasury shares at end of period:
5,837,105 shares
Nine Months Ended December 31, 2022:
5,458,762 sharesYear ended March 31, 2022:(iii) Average number of shares outstanding during period (quarterly cumulative period):
289,642,164 shares
Nine Months Ended December 31, 2022:
292,806,116 shares
Nine Months Ended December 31, 2021:* 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)
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 Nine Months Ended December 31, 2022

2

(1) Description of operating results

2(2) Description of financial position

2(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) Notes on the quarterly consolidated financial statements

8(Notes on going concern assumptions)

8(Notes in the case of significant changes in shareholders' equity)

8(Segment information)81ItohamYonekyu Holdings Inc. (2296)(Translated)

1. Qualitative Information on Consolidated Operating Results for the Nine Months Ended December 31, 2022
(1) Description of operating results
During the third quarter 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 under the influence ofdepreciation of 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 utility
costs, packing materials and distribution costs also, as well as the effects of depreciation of the yen. In addition, the Company continues tobe required to respond to rapidly changing and diversifying consumer needs and values, such as change in consumer behavior andaccelerating 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 toreorganize the entire Group as of April 1, 2023, with our company as the business holding company, in order to establish a more efficientand competitive business operation and organizational structures that will lead to maximizing the effects of integration and improving
growth potential. In New Business and Market Initiatives, we are strengthening our lineup of non-meat products as well as our healthcare
business. Furthermore, as part of the sustainability initiatives, we have defined a target to reduce the Group's greenhouse gas emissions byhalf 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 Group targets
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 a range of 30% to50%, with a target payout ratio of approximately 40%. As for share buybacks, we set a limit of 5 billion yen for the current fiscal year, andby the end of the third quarter, we had repurchased 3.7 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 third quarter came to701,596 million yen (up 7.0% YoY), operating income was 23,917 million yen (up 3.4% YoY), ordinary income was 26,011 million yen(down 2.9% YoY), and net income attributable to owners of the parent was 17,754 million yen (down 4.5%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 “TheGRAND Alt Bayern”, “Asano Fresh Series”, “Pork Bits”, “Gotenba Kogen Arabiki Pork” and “Genkei Bacon Block Series” by launching
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 increased due to 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” and sales increased bycommercial products for the food services also.
As a result, net sales for the third quarter of the current fiscal year in the Processed Foods Division came to 285,963 million yen (up 2.3%
YoY), and the Ordinary income was 8,256 million yen (down 31.1% YoY) due to further cost increases including higher raw materials
prices and utility costs have exceed of effect of the product price revisions.
Meat Division
As for domestic businesses, while sales volume of imported meat fell due to higher local prices, on the other hand sales grew primarily due
to higher unit sales prices in the overall domestic business. In regard to the profits, it dropped due to the impact of rises in procurement forimported chicken and beef, also feed prices, as well as fuel and other costs. Therefore it was difficult to tack those costs on the selling
prices.
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 came to 412,279 million yen (up 10.5%YoY), and ordinary income was 18,528 million yen (up20.9% YoY) in the third quarter of the fiscal year under review thanks to the strong performance of ANZCO Foods Ltd.

(2) Description of financial position(Assets, liabilities and net assets)
Total assets at the third quarter under review was 476,747 million yen, an increase of 63,624 million yen from the end of the previous
fiscal year. This mainly reflects an increase Notes receivable, accounts receivable-trade and inventories also decrease the Cash anddeposits.
Liabilities totaled 204,561 million yen, an increase of 54,178 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 272,185 million yen increased by 9,445 million yen from the end of the previous fiscal year. This was primarily attributable
to an increase in retained earnings.

2

ItohamYonekyu Holdings Inc. (2296)(Translated)(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 November 8, 2022.
Sales and Operating profit are expected to slightly exceed .

Revisions to the forecast for the year ending March 31, 2023 (April 1, 2022-March 31, 2023)
Sales

Operating profit

Ordinary profit

Net Income(Million Yen)

(Million Yen)

(Million Yen)

(Million Yen)

Net Income
per Share(Yen)

Previous forecasts (A)895,000

21,00024,00015,00051.79

Curent forecasts (B)

900,000

22,00024,00015,00051.79

Change (B-A)

5,000

1,000

－

－

Change (%)

0.6

4.8

－

－

Previous Year
28,596
19,118854,374
24,611(March 31, 2022)(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.

3

65.34

ItohamYonekyu Holdings Inc. (2296)(Translated)

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 December 31, 2022

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

23,183
134,161
95,913
1,529
27,445
15,183(18)
297,398

36,252
28,2741,530
26,0172,487
2,437
97,00036,713
28,614
1,459
26,3042,823
4,502
100,417

18,158
3,955
22,114

18,637
7,959
26,596

29,59814,7226,374(93)
50,602
169,717413,123

30,45815,512
6,456(92)
52,334
179,348476,747

ItohamYonekyu Holdings Inc. (2296)(Translated)(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 December 31, 2022

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

78,513
2,096
50,268
129
4,394
3,490
116
329
40,117
179,455

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

10,477
1,693
1,493
11,441
25,106
204,561

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

30,00392,924140,845(4,069)259,703

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

6,910(1,312)
2,910
3,324
11,832
77571
272,185476,747

ItohamYonekyu Holdings Inc. (2296)(Translated)(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Million Yen)
Nine Months Ended
December 31, 2021
(Apr. 1, 2021 - Dec. 31,
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
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 tax purpose reduction entry 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

Nine Months Ended
December 31, 2022
(Apr. 1, 2022 - Dec. 31,
2022）

655,708
550,913
104,795
81,66023,135

701,596596,433
105,163
81,24623,917

27
437
320
1,335
1,101
871
4,093

59
375
343
994
308
850
2,931

237
100
93
432
26,796

529
108
199
837
26,011

5
55
134
906
24
1,126

61
0
－
－
－
61

170
904
20
1,095
26,827
6,315
1,898
8,213
18,61330
18,582

242
－
12
254
25,818
6,987
1,037
8,024
17,79338
17,754

ItohamYonekyu Holdings Inc. (2296)(Translated)

Consolidated statements of comprehensive income(Million Yen)
Nine Months Ended
December 31, 2021
(Apr. 1, 2021 - Dec. 31,
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

Nine Months Ended
December 31, 2022
(Apr. 1, 2022 - Dec. 31,
2022）

18,613

17,793

(844)
(27)
883
(344)

187
(1,464)
2,824
(274)

346

851

13
18,627

2,124
19,917

18,61016

19,83780

(Translated)

ItohamYonekyu Holdings Inc. (2296)(3) 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, Nine Months Ended December 31, 2021 (from April 1, 2021 to December 31, 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
279,501
372,991
652,492
3,215
655,708
655,708－
Net sales to customers
Intersegment net sales
19,08560,52079,606
22,568102,174(102,174)－or transfers
298,587
433,511732,099
25,783757,882(102,174)
655,708
Total
11,977
15,32627,30456
27,360(564)
26,796
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 (1041) million yen.
3. Segment income (loss) is adjusted to ordinary income in the quarterly consolidated statements of income.

II, Nine Months Ended December 31, 2022 (from April 1, 2022 to Dcember 31, 2022)
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
285,963
412,279
698,2423,353
701,596
701,596－
Net sales to customers
Intersegment net sales
20,32062,44982,76922,245
105,014(105,014)－
or transfers
306,283
474,728
781,01225,599806,611(105,014)
701,596
For the fiscal year ending
8,256
18,52826,784(282)
26,502(490)
26,011(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 (1041) 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 third quarter of the previous fiscal year is presented based on the segment income adjusted for the newclassification method and adjusted to ordinary income.

3. Information on impairment losses on Fixed assets or Goodwill, in reportable segment, etc.
(The Goodwill amount show significant change)
In the Meat Division segment, there was the 1,600 million yen Goodwill occurrence by Healthcare business acquisition ofMoregate Exports Pty. Ltd. and Moregate Exports Ltd. in the Meat Division.
The amount was calculated tentatively as Purchase Price Allocation has not been completed yet.

8