May 09, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 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
June 24, 2022
Scheduled date for general shareholders' meeting:June 24, 2022
Scheduled date for filing of securities report:
Scheduled date of commencement of dividend payment: June 06, 2022
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, 2022 (April 1, 2020–March 31, 2022)(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%
854,374
24,611
28,596
19,118March 31, 2022――――
842,675
24,018 39.1
27,000 38.2
20,204 76.6
March 31, 2021
-1.1
21,979 million Yen (－%)
(Note) Comprehensive income:The fiscal year ended March 31, 2022
25,209 million Yen (136.5%)
The fiscal year ended March 31, 2021
Profit (loss)
Diluted net income
Net income to
Ordinary Income toOperating income
per shareper share
shreholder's equity
assetsto net sales
For the fiscal year ended
Yen
Yen
%
%
%
March 31, 2022
65.34
65.31
7.5
7.1
2.9
March 31, 2021
68.61
68.57
8.5
6.9
2.9
605 million Yen(Reference) Equity in income or losses of affiliates:
The Fiscal Year Ended March 31, 2022
1,040 million Yen
The Fiscal Year Ended March 31, 2021
(Note) As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. has been applied from the beginning of the first quarter of the fiscal
year ending March 31, 2022, the figures for the first nine months of the fiscal year ending March 31, 2022 are after the application of the said accounting
standard, etc., and the percentage change from the same period of the previous year is not stated.

(2) Consolidated financial position

As of March 31, 2022
As of March 31, 2021
(Reference) Shareholders’ equity:

Total assets
Net assets
Million Yen
Million Yen
413,123
262,740
394,086
247,648
As of March 31, 2022
As of March 31, 2021

Equity ratio

Net assets per share
%
Yen
63.4
897.6662.7
843.52
262,023 million Yen
246,931 million Yen(Note) The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29 ), etc. has been applied
since the beginning of the six months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue
differs from that of the six months of the previous fiscal year.

(3) Consolidated cash flows
From operating
activities
For the fiscal year ended
March 31, 2022
March 31, 2021

From investing
activities

Million Yen
18,47340,862

Cash and cash
equivalents at the endof fiscal year
Million Yen
Million Yen-10,653
47,690-21,097
50,651

From finacing
activities

Million Yen-11,251-10,837

2. Dividends
Dividend per share

For the fiscal year ended
March 31, 2021
March 31, 2022
For the fiscal year ending
March 31, 2023
(Forecast)First
quarter-end

Secondquarter-end

Thirdquarter-end

Fiscalquarter-end

Yen
－
－

Yen
0.00
0.00

Yen
－
－

Yen
21.00
23.00

－

0.00

－

24.00

Ratio of
Total amount
total amountof
Dividendof
cash
payout ratio
dividends to
Total
dividends (consolidated)shareholders'(annual)equityYen Million Yen
%
%
21.00
6,147
30.6
2.6
23.00
6,713
35.2
2.6
24.00

46.7

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

Operating profit

Million Yen
422,000%
1.0

Million Yen%
11,500 -20.6

865,000

1.2

21,000 -14.7(% figures show year-on-year change)
Profit (loss)
Profit (loss) per share
attributable to owners
Million Yen% Million Yen%
Yen
13,000 -21.4
8,500 -28.0
29.12
Ordinary income

24,000 -16.1

15,000-21.5* 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:
Yes(ii) Other Chaneges in accounting policies:None(iii) Chaneges in accounting esteimates:None(iv) Restatement:
None(Note) For details, please see “(5) Notes on consolidated financial statements, (Change in accounting policies)”
under “3. Consolidated Financial Statements and Key Notes” on page 11.

(3) Numbers of shares outstanding (common stock)(i)
Numbers of issued shares at end of period:
Year ended March 31, 2022:
297,335,059 sharesYear ended March 31, 2021:
297,335,059 shares(ii) Numbers of treasury shares at end of period:
Year ended March 31, 2022:
5,458,762 sharesYear ended March 31, 2021:
4,616,157 shares(iii) Average number of shares outstanding during period:
Year ended March 31, 2022:
292,581,811 sharesYear ended March 31, 2021:
294,497,098 shares(Reference) Non-Consolidated Financial Results
Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2020–March 31, 2022)(1) Non-Consolidated Results of Operations(% figures show year-on-year change)

For the fiscal year ended
March 31, 2022
March 31, 2021

For the fiscal year ended
March 31, 2022
March 31, 2021

Operating revenue

Operating profit

Ordinary profit

net income

Million Yen%
21,300 55.0
13,738 -21.1

Million Yen%
15,788 56.8
10,071 -27.4

Million Yen%
15,854 55.4
10,202 -27.0

Million Yen%
14,358 39.6
10,282 -25.5

Profit (loss)
per share

Diluted net income
per share
Yen
49.05
34.90

Yen
49.08
34.92

(2) Individual financial position

As of March 31, 2022
As of March 31, 2021
(Reference) Shareholders’ equity:

Total assets
Net assets
Million Yen
Million Yen
230,345
200,684
225,231
193,021
As of March 31, 2022
As of March 31, 2021(% figures show year-on-year change)
Equity ratio
Net assets per share
%
Yen
87.1
687.1185.6
658.91
200,565 million Yen
192,889 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 11, 2022.
Supplementary information will be published on TD-net for viewing in Japan and on our website.

51.39

ItohamYonekyu Holdings Inc. (2296)

Contents
1. Overview of Operating Results and Financial Position .................................................................................................... 2(1) Overview of operating results ..................................................................................................................................... 2(2) Overview of financial positions .................................................................................................................................. 3(3) Overview of cash flows ............................................................................................................................................... 3(4) Outlook........................................................................................................................................................................ 3
2. Basic Concept for the Selection of Accounting Standards ................................................................................................ 4
3. Comsolidated Financial Statements and Key Notes ......................................................................................................... 5(1) Consolidated balance sheets ............................................................................................................................................ 5(2) Consolidated statements of income and comprehensive income .......................................................................................... 7
Consolidated statements of income .................................................................................................................................... 7
Consolidated statements of comprehensive income .............................................................................................................. 8(3) Consolidated statement of changes in equity .............................................................................................................. 9(4) Consolidated statements of cssh flows ...................................................................................................................... 11(5) Notes on the consolidated financial statements ......................................................................................................... 12(Notes on going concern assumptions) ....................................................................................................................... 12(Change in accounting policies) .................................................................................................................................. 12(Segment information) ................................................................................................................................................ 13(Per share information) ............................................................................................................................................... 15(Significant subsequent events) .................................................................................................................................. 16－1－

ItohamYonekyu Holdings Inc. (2296)

1. Overview of Operating Results and Financial Position
The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29
issued on March 31, 2020; hereinafter the "Revenue Recognition Accounting Standard"), etc. has been applied fromthe beginning of the fiscal year under review. As a result, the accounting treatment of revenue differs from that of theprevious fiscal year. Therefore, the explanation is provided without stating the amount of change or the year-on-yearcomparison (%) in the following (1) Overview of operating results for the fiscal year ended March 31, 2022. For theamount of change corrected to the same accounting standards and the comparison with the previous year, please referto the supplementary materials.
(1) Overview of operating results
During the fiscal year under review, the Japanese economy showed some signs of recovery due to the normalizationof socioeconomic activities while taking thorough countermeasures against COVID-19, despite the continuing
concerns over the spread of COVID-19. However, the outlook remains uncertain due to the widespread impact ofrising crude oil prices and commodity prices.
In the industry where Itoham Yonekyu Holdings Inc. (the "Company") and its subsidiaries (collectively the "Group")
operate, the business environment remained harsh because of soaring raw material and energy prices, as well as highlogistics and labor costs. In addition, the Company is required to respond to rapidly changing and diversifying
consumer needs and values, such as change in consumer behavior and accelerating digitalization under the COVID19 situation, and growing interest in sustainability.
In this environment, the Group is executing product and sales strategies that properly and promptly respond tochanges in the world. To fulfill its supply responsibilities as a food manufacturer, the Group operates in anenvironment that allows each employee to practice a variety of work styles in a safe and secure manner, while
continuing thorough countermeasures against COVID-19. In addition, the Group has developed the Medium-Term
Management Plan 2023 for the period of three years starting from fiscal year 2021, setting the Group philosophy as"We will contribute to achieving a sound and affluent society through business" and the vision of becoming "aleading food company that emphasizes the spirit of fairness, rises to the challenge of transformation and achieves
sustainable growth with its employees." Under this philosophy and vision, the Group also set four priority policies:
strengthening its management base, strengthening its earnings base, pursuing initiatives for new businesses andmarkets and taking initiatives for sustainability. Specifically, the Group is taking measures including reorganization
into business segment unit based on strategy to maximize integration effects; promotion of operational efficiency
through digital strategies utilizing RPA and expense management systems, etc.; and switch the packaging fromdrawstring bag form to eco-friendly one for the products such as "The GRAND Alt Bayern."
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. The Group has also committed to implement
shareholder return policies in consideration of financial soundness and capital efficiency. To maximize shareholder
value, the Company increase dividends steadily within the payout ratio ranging from 30% to 50%, with targeting
payout ratio to be approx. 40%.
As mentioned above, the Company implemented efforts to respond to changes in the business environment, and it
recorded net sales of 854,374 million yen, operating income of 24,611 million yen, ordinary income of 28,596
million yen, and net income attributable to owners of parent of 19,118 million yen for the fiscal year under review.
The results by reportable segment are as outlined below.
<Processed food division>
With regard to hams and sausages, net sales remained almost flat year on year. Although there was positive impact
from the efforts to expand sales of the main products for home use such as The Grand Alt Bayern, Asano Fresh Series,
Pork Bits, Gotenba Kogen Arabiki Pork, and Genkei Bacon Block Series, by launching TV commercials andconducting consumer campaigns, beside the impact from the sales growth of roast beef for business use, they wereoffset by the impact of reviewing unprofitable products to improve profitability.
In processed food, net sales increased due to sales growth in products that respond to diversifying consumer needs,
such as Umazutsumi Volume Rich Hamburg and the soy-meat-based Marude Oniku! series and higher sales of－2－

ItohamYonekyu Holdings Inc. (2296)

commercial-use products for food service companies, in addition to the solid growth in Pizza products such as La
Pizza and Pizza Garden.
As for gifts, sales of cooked food gifts grew as a result of efforts to expand sales centering on the Densho series bylaunching TV commercials with a new concept. However, overall gift sales volume and net sales were lower than theprevious year due to the impact of the shrinking market as a whole.
As a result of the above, the processed food division recorded net sales of 302,309 million yen, and operating incomeof 11,086 million yen affected by soaring raw materials and energy prices.
<Meat division>
In domestic businesses, despite a lower demand for home cooking food, net sales increased due to sales volume
growth of imported chicken products for commercial use and domestic chicken products for mass merchandisers, aswell as remained high market prices of imported and domestic beef. On the other hand, profits declined, partly due tohigher procurement prices resulting from increased market prices and continued congestion in marine containertransport.
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, in addition to strong demand for meat products overseas.
As a result, the meat division recorded net sales of 547,843 million yen and operating income of 14,860 million yen.
(2) Overview of financial positions
Total assets at the end of the fiscal year under review was 413,123 million yen, an increase of 19,036 million yen
from the end of the previous fiscal year. This mainly reflects an increase in inventories.
Liabilities totaled 150,383 million yen, an increase of 3,944 million yen from the end of the previous fiscal year. Thiswas mainly due to an increase in notes and accounts payable - trade and a decrease in loans payable.
Net assets was 262,740 million yen increased by 15,091 million yen from the end of the previous fiscal year. Thiswas primarily attributable to an increase in retained earnings.
Due to the application of the Revenue Recognition Accounting Standard, etc., the beginning balance of retained
earnings decreased 155 million yen.
(3) Overview of cash flows
The balance of cash and cash equivalents (hereinafter referred to as "Funds") at the end of the fiscal year underreview decreased by 2,961 million yen from the end of the previous fiscal year (an increase of 8,879 million yen in
the previous fiscal year) to 47,690 million yen.
◇Cash flows from operating activities
Operating activities increased funds by 18,473 million yen (an increase of 40,862 million yen in the previous fiscal
year). Main positive factor was net income before taxes, while the main negative factors were an increase ininventories and payments of income taxes.
◇Cash flows from investing activities
Investing activities decreased funds by 11,251 million yen (a decrease of 10,837 million yen in the previous fiscal
year). The decrease was mainly due to purchase of property, plant and equipment, including the renewal of facilities.
◇Cash flows from financing activities
Financing activities decreased funds by 10,653 million yen (a decrease of 21,097 million yen in the previous period).
The decrease was mainly due to a decrease in loans payable and payment of dividends.
(4) Outlook

For the fiscal year
ending March 31,2023
For the fiscal year
ended March 31,
2022
Percentage change(%)

Net sales

Operating income

Ordinary income

Net income
attributable toowners of parent

Net income per
share(Million Yen)

(Million Yen)

(Million Yen)

(Million Yen)

(Yen)

865,000

21,00024,00015,00051.39

854,374

24,611

28,596

19,118

65.34

1.2

-14.7

-16.1

-21.5

－3－

ItohamYonekyu Holdings Inc. (2296)

As for the outlook, the Company expects that the economic situation will remain unpredictable due to the factors
such as the impact of COVID-19 and heightened geopolitical risks. The industry is also expected to have a difficult
situation in which cost increase will likely to exceed the prices increase of the products amid continuing hike in raw
materials and energy prices, in addition to a rapid yen depreciation. In addition, consumer needs and values are likely
to further change and diversify as society's digitalization accelerates and sustainability initiatives draw attention even
more.
Under these circumstances, the Group will continue to strengthen its management and earnings bases based on theMedium-Term Management Plan 2023 to adapt to changes in the business environment and demonstrate its strengths.
In addition to responding to new market needs, the Group will take socially and environmentally friendly initiatives
to enhance its competitiveness and growth potential.
Based on the above, the Company expects consolidated net sales of 865.0 billion yen, operating income of 21.0
billion yen, ordinary income of 24.0 billion yen, and net income attributable to owners of parent of 15.0 billion yen
for the next fiscal year.
2. Basic Concept for the Selection of Accounting Standards
For the time being, the Group's prepares its consolidated financial statements in accordance with Japanese GAAP,
considering the comparability of the consolidated financial statements from period to period and the comparability
among companies. The Group will respond appropriately to the application of International Financial ReportingStandards (IFRS), considering various conditions in Japan and overseas.

－4－

ItohamYonekyu Holdings Inc. (2296)(3) Consolidated statements of cash flows(Million Yen)
The Fiscal Year Ended
The Fiscal Year Ended
March 31, 2021
March 31, 2022
(Apr 1, 2020 - Mar 31, 2021） (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
Loss on liquidation of subsidiaries
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
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
Purchase of treasury shares of subsidiaries
Dividends paid
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
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－5－29,113
11,519
165
1,116
1,483
(385)
360
(3,218)139(1,244)(1,040)
464
1,293
8,043
(4,821)
709
(132)
(708)
(1,754)
41,103
625
3,227
1,033
(360)
(77)
(4,688)40,862

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)
18,473(9,685)(1,226)
(73)
714
(237)
235
(564)
(10,837)(9,039)(2,189)
(169)
106
(236)
419
(143)
(11,251)(3,192)(10,179)(1,478)(321)(5,009)(2,795)(155)(649)(6,144)

(6)

-

(866)
(44)
(21,097)(48)
8,879
41,77150,651(872)(36)(10,653)471(2,961)50,65147,690ItohamYonekyu Holdings Inc. (2296)(Million Yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of Long-term borrowings
Lease obligations
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 obligations
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

56,615
1,660
25,704
155
813
21,768
4,149
508
6,397
147
467
4,653
123,041

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

10,717
2,193
4,253
1,725
1,475
3,031
23,396
146,438

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

30,00396,624
116,989(3,624)
239,992

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

7,298
(329)
(3,073)
3,042
6,939
131
585
247,648
394,086

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

Consolidated statements of income and comprehensive income

ItohamYonekyu Holdings Inc. (2296)

Consolidated statements of income(Million Yen)
The Fiscal Year Ended
The Fiscal Year Ended
March 31, 2021
March 31, 2022
(Apr 1, 2020 - Mar 31, 2021） (Apr 1, 2021 - Mar 31, 2022）

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 sale of investment securities
Impairment loss
Loss on tax purpose reduction entry of non-current assets
Loss on liquidation of subsidiaries
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－7－842,675
702,695
139,979
115,961
24,018854,374
722,470
131,904
107,292
24,611

56
328
423
214
1,244
1,040
573
3,882

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

360
143
395
900
27,000

318
137
187
644
28,596

476
10
3,003
3,490

5
57
134
906
24
1,128

587
475
165
139
8
1,377
29,113
8,367
451
8,819
20,29489
20,204

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

ItohamYonekyu Holdings Inc. (2296)
Consolidated statements of comprehensive income(Million Yen)
The Fiscal Year Ended
The Fiscal Year Ended
March 31, 2021
March 31, 2022
(Apr 1, 2020 - Mar 31, 2021） (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
for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－8－

20,294

19,166

2,449
26
441
1,651

(612)
480
1,490
457

346

995

4,915
25,2092,812
21,97925,141
68

21,92949

ItohamYonekyu Holdings Inc. (2296)(3) Consolidated statement of changes in equity
Year Ended March 31, 2021 (Apr. 1, 2020 - Mar. 31, 2021)(Million Yen)
Shareholders’ equity
Share capital Capital surplus
Balance at beginning of
period30,003

96,267Retainedearnings

Treasuryshares101,792(2,293)

Total
shareholders’equity225,770

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period(5,007)(5,007)

20,20420,204(29)(1,478)(1,478)

147

117

386

386

―

357

15,196(1,331)

14,22230,00396,624

116,989(3,624)

239,992

Accumulated other comprehensive income
Valuation Deferred gains
difference onoravailable-forlosses onsale securities
hedgesBalance at beginning of
period

4,823

(355)

Total
Remeasuremen
accumulatedts
otherof definedcomprehensive
benefit plansincomeForeigncurrencytranslation
adjustment(3,767)

1,301

2,002

Share
acquisitionrights

Noncontrollinginterests

Total net assets

131

1,275

229,178

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders’equity(5,007)
20,204(1,478)
117

(714)

(327

24

4,961

2,475

26

694

1,741

4,936

Total changes during period

2,475

26

694

1,741

4,936

―

(689)

18,469Balance at end of period

7,298

(329)

(3,073)

3,042

6,939

131

585

247,648－9－

ItohamYonekyu Holdings Inc. (2296)

Year Ended March 31, 2022 (Apr. 1, 2021 - Mar. 31, 2022)(Million Yen)
Shareholders’ equity
Share capital Capital surplus
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Balance at beginning of
period after retrospective
adjustment

30,00396,624Retainedearnings

Treasuryshares116,989(3,624)(155)

30,00396,624

116,834

Total
shareholders’equity239,992(155)(3,624)

239,837

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during period
Balance at end of period(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 Deferred gains
difference onoravailable-forlosses onsale securities
hedgesBalance at the beginning of
the period
Cumulative effects ofchanges in accounting
policies
Balance at beginning of
period after retrospective
adjustment

7,298

(329)

Total
Remeasuremen
accumulatedts
otherof definedcomprehensive
benefit plansincomeForeigncurrencytranslation
adjustment(3,073)

3,042

6,939

Share
acquisitionrights

Noncontrollinginterests

Total net assets

131

585

247,648
(155)

7,298

(329)

(3,073)

3,042

6,939

131

585

247,492

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity(6,147)
19,118
(649)
114
(571)

480

2,388

513

2,810

(13)

13

2,811

Total changes during period

(571)

480

2,388

513

2,810

(13)

13

15,247

Balance at end of period

6,727

151

(684)

3,556

9,750

118

598

262,740－10－

Consolidated Financial Statements and Key Notes

ItohamYonekyu Holdings Inc. (2296)(1) Consolidated balance sheets(Million Yen)
As of March 31, 2021
ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Notes
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－11－

As of March 31, 2022

50,95286,591
63,313
1,745
17,1746,617(10)
226,384

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

102,615(66,181)
36,433
125,742(96,823)
28,9196,903(5,435)
1,468
25,7456,214(3,455)
2,758
2,176
145
(52)
92
97,595

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
97,00019,5732,150
21,724

18,158
3,955
22,11429,331
1,520
734
12,162
4,738(105)
48,382
167,702394,086

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

ItohamYonekyu Holdings Inc. (2296)(5) Notes on the consolidated financial statements(Notes on going concern assumptions)Not applicable.
(Change in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has decided to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020; hereinafter the "Revenue Recognition Accounting Standard") from the beginning of the fiscal year
under review and recognizes revenue from goods or services at an amount expected to be received in exchange for the
goods or services at the time when control of the goods or services is transferred to a customer.
For the application of the Revenue Recognition Accounting Standard, the Company follows the provisional treatment
stipulated in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. The cumulative effects inthe case of retroactively applying the new accounting policy to before the beginning of the current fiscal year are
adjusted in retained earnings at the beginning of the current fiscal year, and the new accounting policy is applied fromthis initial balance.
Major changes as a result of the application of Revenue Recognition Accounting Standard are as follows.
- For buy-sell transactions, the Company previously recognized consideration received from outsourced
companies as revenue. However, it has now adopted the method of not recognizing this revenue.
- Previously, the Company considered posted sales commissions and sales promotion support money, etc. paid tocustomers as selling, general and administrative expenses. However, it has now adopted the method of
deducting them from net sales.
- For some sales rebates, previously the Company recognized revenue at a provisional price at the time of sales
and revised the price according to the status of achievement of sales. However, it has now adopted a method of
estimating the amount of the variable portion of the consideration for a transaction and including in thetransaction price only the portion that is highly unlikely to be significantly reduced in the recognized revenue.
As a result, during the fiscal year under review, net sales, cost of goods sold, and selling, general and administrative
expenses decreased by 32,660 million yen, 22,931 million yen and 9,696 million yen, respectively, while operating
income, ordinary income and profit before income taxes each decreased by 33 million yen. The balance of retained
earnings at the beginning of the fiscal year under review also decreased by 155 million yen. The application of the
Revenue Recognition Accounting Standard and others mentioned above has an immaterial impact on per share
information.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company applies the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019,
hereinafter the "Fair Value Measurement Accounting Standard"), etc. from the beginning of the fiscal year underreview. Accordingly, it prospectively adopts accounting policies prescribed in the Fair Value Measurement AccountingStandard and the like in accordance with the provisional treatment stipulated in Paragraph 19 of the Fair Value
Measurement Accounting Standard and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019). The application of the Fair Value Measurement Accounting Standard and others
mentioned above has no impact on the consolidated financial statements.

－12－

ItohamYonekyu Holdings Inc. (2296)(Segment information)
1. Overview of reportable segments
The Group's reportable segments are the 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 andto assess the performance.
The Group consists of segments by good and service based on finished goods, and has two reportable segments: the"Processed food division," which is mainly engaged in the production and sale of ham, sausage, and processed
foods, and the "Meat division," which is primarily engaged in the production, processing, and sale of meat.
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 theconsolidated financial statements. Profit by reportable segment is based on operating income. Intersegment sales
and transfers are based on market prices.
3. Information on net sales, profit or loss, assets and other items, for each reportable segment
For the Year Ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Million Yen)
Amountconsolidated
Adjustments financial(Note 2)statement ofincomeReportable segments
OthersProcessed
Meat division
food division(Note 1)

Total

Total

(Note 3)

Net sales
Sales to outside
customers

307,041

531,581

838,623

4,052

842,675―

842,675

2,097

24,414

26,512

28,84355,355(55,355)―

Total

309,139555,996865,136

32,895

898,031(55,355)

842,675

Segment income(loss)

12,397

13,44325,840(88)

25,751(1,733)24,018Segment assets

113,561

149,042

262,603

2,341

264,945

129,141

394,086

6,937

4,159

11,096

243

11,34036

11,377

―

94

94

―

94

1,389

1,483

6,187

4,314

10,502454

10,957640

11,598Intersegment sales andtransfers

Other items
Depreciation
Amortization of
goodwill
Increase in property,
plant and equipment andintangible assets

Notes:
1. "Others" includes the logistics business and personnel and payroll-related operations, etc. that are not included inreportable segments.
2. Adjustments are as follows.
(1) The main content of adjustment of segment income (loss) is the amortization of goodwill of -1,389 million yen.
(2) Adjustment of segment assets of 129,141 million yen includes corporate assets that are not allocated to eachreportable segment. Corporate assets consisted mainly of cash and deposits of 50,831 million yen, investments
and other assets of 47,832 million yen, and goodwill of 19,447 million yen.
(3) The adjustment of 640 million yen for increase in property, plant and equipment and intangible assets is mainly
an increase in corporate assets that are not allocated to each segment.
3. Segment income (loss) is adjusted with operating income in the consolidated statements of income.

－13－

ItohamYonekyu Holdings Inc. (2296)

For the Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022
(Million Yen)
Amountconsolidated
Adjustments financial(Note 2)statement ofincomeReportable segments
OthersProcessed
Meat division
food division(Note 1)

Total

Total

(Note 3)

Net sales
Sales to outside
customers

302,309547,843

850,1534,221

854,374―

854,374

1,251

25,063

26,31429,211

55,525(55,525)―

Total

303,560

572,907876,468

33,432909,900(55,525)

854,374

Segment income

11,086

14,86025,946

175

26,121(1,510)24,611

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

―

39

39

―

39

1,389

1,428

6,001

5,094

11,09540

11,136582

11,719Intersegment sales andtransfers

Other items
Depreciation
Amortization of
goodwill
Increase in property,
plant and equipment andintangible assets

Notes:
1. "Others" includes the logistics business and personnel and payroll-related operations, etc. that are not included inreportable segments.
2. Adjustments are as follows.
(1) The main content of adjustment of segment income is the amortization of goodwill of -1,389 million yen.
(2) Adjustment of segment assets of 131,051 million yen includes corporate assets that are not allocated to eachreportable segment. Corporate assets consisted mainly 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) The adjustment of ¥582 million for increase in property, plant and equipment and intangible assets is mainly an
increase in corporate assets that are not allocated to each segment.
3. Segment income is adjusted with operating income reported in the consolidated statements of income.
4. Matters concerning changes in reportable segments, etc.
As described in the "Change in accounting policies," the Company has applied the Revenue Recognition
Accounting Standard, etc. from the beginning of the fiscal year under review and changed the accounting method
for revenue recognition. Reflecting this change, it has changed the calculation method for business segment incomein the same manner.
As a result of this change, net sales and segment income in the processed food division decreased 7,880 million yen
and 58 million yen, respectively, and net sales in the meat division declined 24,780 million yen while segment
income in the same division increased 25 million yen compared to the previous method.

－14－

ItohamYonekyu Holdings Inc. (2296)(Per share information)
Year Ended
March 31, 2021
(Apr. 1, 2020 - Mar. 31, 2021)

Year Ended
March 31, 2022
(Apr. 1, 2021 - Mar. 31, 2021)

Net assets per share

843.52 yen

897.66 yen

Net income per share

68.61 yen65.34 yen

Diluted net income per share

68.57 yen

65.31 yen

(Note)1. The basis for calculation of net assets per share is as follows.
As of March 31, 2021
Total net assets (Million Yen)

As of March 31, 2022

247,648

262,740716

717(Share acquisition rights (Million Yen))

(131)

(118)

(Non-controlling interests (Million Yen))

(585)

(598)

246,931

262,023

292,738

291,896

Amount deducted from total net assets (Million Yen)

Net assets related to common shares at the end of theperiod (Million Yen)
Number of shares of common shares at the end of theperiod used in the calculation of net assets per share(thousands of shares)

2. The base for calculation of net income per share and diluted net income per share is as follows.
Year Ended
March 31, 2021
(Apr. 1, 2020 - Mar. 31, 2021)

Year Ended
March 31, 2022
(Apr. 1, 2021 - Mar. 31, 2022)

20,204

19,118――20,204

19,118294,497

292,581――

Increase in common shares (thousand shares)

173

163

(Share acquisition rights (thousand shares))

(173)

(163)

―

―

Net income per share
Net income attributable to owners of parent (Million
Yen)
Amount not attributable to common shareholders(Million Yen)
Income attributable to owners of parent related tocommon shares (Million Yen)
Average number of common shares during the period(thousand shares)

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

Outline of dilutive shares not included in the calculationof diluted net income per share due to the absence ofdilutive effects－15－

ItohamYonekyu Holdings Inc. (2296)(Significant subsequent events)(Acquisition of business by a consolidated subsidiary)
At the meeting of the Board of Directors held on March 18, 2022, the Company, resolved to enter into a business
transfer agreement with Moregate Exports Pty. Ltd. (located in Australia) and Moregate Exports Ltd. (located in New
Zealand), to acquire the animal-derived blood products manufacturing and sales business owned by both of them,through its consolidated subsidiary ANZCO FOODS Ltd. The agreement was entered into on March 22, 2022.
1. Outline of the business combination(1) Purpose of business transfer
In our Medium-Term Management Plan 2023, the Company have set "pursuing initiatives for new businesses" as
one of the priority policies and strives to strengthen peripheral business areas that have high affinity with ourexisting businesses and expand our production areas and sales markets.
The Company resolved to enter into this business transfer agreement based on the judgment that the animal-derived
blood products business will contribute to the expansion of the scale and added value of the Group's healthcare
business, as the products is expected to have significant growth in the future for vaccines, regenerative medicine,and clinical diagnosis, amid solid demand from pharmaceutical and biotechnology companies.
(2) Name and business of the counterparty companies
Names of the companies (Australian):(New Zealand):Line of Business

Moregate Exports Pty. Ltd.
Moregate Exports Ltd.

Manufacture and sale of animal-derived blood products(3) Date of business combination
Mid-May 2022 (scheduled)(4) Legal form of business combination
Acquisition of business for cash consideration
2. Breakdown by type of acquisition cost and consideration for business acquisition
Not to be disclosed by agreement between the parties.
3. Details and amounts of major acquisition-related expenses
The calculation is underway at present.
4. Amount of goodwill arising from the business transfer, reason for goodwill, amortization method and period
The calculation is underway at present.
5. Amount of assets acquired through the business combination and its major breakdown
The calculation is underway at present.

－16－