August 06, 2021

Consolidated Financial Results (Japanese Accounting Standards)
for the Three Months Ended June 30, 2021 (Q1 FY 2021)
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
Kenji Uchiyama, Manager, Investor Relations Section
Tel. +81-3-5723-6885
August 12, 2021
Scheduled date for filing of securities report:
Scheduled date of commencement of dividend payment: Supplementary documents for financial results:
Yes
Quarterly results briefing:No(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021–June 30, 2021)(1) Consolidated Results of Operations (Accumulated Total)(% figures show year-on-year change)
Profit attributable toowners of parent
Million Yen% Million Yen% Million Yen% Million Yen%
202,607
7,554
8,425
5,908
―
―
―
―
204,992
5,028
5,516
3,657
-2.8
5.4
5.6
5.4
6,560 million Yen (－%)
Three months ended June 30, 2021
2,441 million Yen (-4.1%)
Three months ended June 30, 2020
Fully diluted net
Net income per shareincome
Yen
Yen
20.18
20.17
12.42
12.41
Net sales

Three months ended
June 30, 2021
June 30, 2020
(Note) Comprehensive income:Three months ended
June 30, 2021
June 30, 2020

Operating income

Ordinary income(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 first three months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue
differs from that of the first three months of the previous fiscal year. Therefore, Consolidated Financial Results is provided without
stating the amount of the year-on-year comparison (%) .

(2) Consolidated financial position

As of June 30, 2021
As of March 31, 2021
(Reference) Shareholders’ equity:

Total assets
Net assets
Million Yen
Million Yen
414,856
247,869
394,086
247,648
As of June 30, 2021
As of March 31, 2021

Equity ratio
%
59.6
62.7
247,165 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 first three months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue
differs from that of the first three months of the previous fiscal year.

2. Dividends
First
SecondFor the fiscal year ended
Yen
Yen
March 31, 2021－
0.00
March 31, 2022－
For the fiscal year ending
March 31, 2022
0.00
(Forecast)(Note) Changes to most recent dividend forecast: None

Third

Fiscal

Total

Yen
－

Yen
21.00

Yen
21.00

－

22.00

22.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)
Net Sales

Operating income

Million Yen% Million Yen
410,000
12,000
Second quarter-end―(Cumulative)
820,000
23,000
Full year―(Note) Changes to most recent financial results forecast: None%――(% figures show year-on-year change)
Profit attributable toOrdinary income
Net income per shareowners of parent
Million Yen% Million Yen%
Yen
12,500
8,500
29.04
―
―
25,000―16,000―(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 first three months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue
differs from that of the first three months of the previous fiscal year. Therefore, the Forecast of Consolidated Financial Results is provided without
stating the amount of the year-on-year comparison (%) .

54.66

Itoham Yonekyu Holdings Inc.

○ Accompanying Materials – Contents
1. Qualitative Information on Consolidated Operating Results for the Three Months Ended June 30, 2021 .............. 2(1) Description of operating results .......................................................................................................................... 2(2) Description of financial position ........................................................................................................................ 3(3) Description of future outlook, including consolidated operating results forecasts ............................................. 3
2. Quarterly Consolidated Financial Statements and Major Notes .............................................................................. 4(1) Quarterly consolidated balance sheets ................................................................................................................ 4(2) Quarterly consolidated statements of income and comprehensive 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(Changes in accounting policies) ....................................................................................................................... 8(Segment information) ....................................................................................................................................... 9―1―

Itoham Yonekyu Holdings Inc.

1. Qualitative Information on Consolidated Operating Results for the Three Months Ended June 30, 2021
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 since the beginning of the first threemonths of the consolidated fiscal year under review. As a result, the accounting treatment of revenue differs from that of the first threemonths of the previous fiscal year. Therefore, the explanation is provided without stating the amount of change or the year-on-yearcomparison (%) in the following (1) Description of operating results. For the amount of change corrected to the same accounting
standards and the comparison with the same quarter of the previous year, please refer to the supplementary materials for quarterly
operating results.

(1) Description of operating results
During the first three months of the consolidated fiscal year under review, the Japanese economy continued to face a challenging
situation given the restrictions imposed on socioeconomic activities by the impact of COVID-19. The outlook is also likely to remain
uncertain until the impact of COVID-19 is contained by vaccination and other means.
In the industry where Itoham Yonekyu Holdings Inc. (the “Company”) and its subsidiaries (collectively the “Group”) operate,
consumer needs and values are rapidly changing and diversifying with changes in their purchasing behavior and the acceleration ofdigitalization in society, reflecting the impact of COVID-19 as well as growing interest in ESG and SDGs. To fulfill its supply
responsibilities as a food manufacturer, the Group operated based on a system that allows each employee to practice a variety of work
styles in a safe and secure manner. It did so by commencing vaccinations at the workplace, in addition to continuing thoroughcountermeasures against COVID-19, and by working to strengthen its foundations to adapt to changes in the environment anddemonstrate its strengths.
In this environment, the Group has developed the Medium-Term Management Plan 2023 for the period of three years starting fromfiscal 2021. Setting the Group philosophy “We will contribute to achieving a sound and affluent society through business” and thevision of becoming “a leading food company that emphasizes the spirit of fairness, rises to the challenge of transformation andachieves sustainable growth with its employees,” the Group will increase its competitiveness and growth potential by taking onchallenges such as strengthening its management base, strengthening its earnings base, pursuing initiatives for new businesses andmarkets and taking initiatives for sustainability. In doing so, it will aim to achieve new breakthroughs and growth by defying
stereotypes and reaffirming its strengths. Focusing on return on invested capital (ROIC) as a quantitative indicator, the Group aims to
improve it to 6.8% during the applicable period. The Group has also decided to implement shareholder return policies in considerationof financial soundness and capital efficiency and has a dividend policy of increasing dividends steadily, with the payout ratio ranging
from 30% to 50%, aiming for a payout ratio of around 40%.
As a result of improving production efficiency and responding to changes in consumer needs linked to the impact of COVID-19 basedon the policies above, the Group recorded net sales of 202,607 million yen and operating income of 7,554 million yen in its financial
results for the first three months under review. Ordinary income stood at 8,425 million yen, and profit attributable to owners of parent
was 5,908 million yen.
The operating results by reportable segment are as outlined below.
<Processed food business>
With regard to hams and sausages, net sales declined mainly due to the impact of reviewing unprofitable products to improve
profitability, although sales of the main products such as The Grand Alt Bayern, Asano Fresh Series and Pork Bits remained firm dueto the launch of TV commercials and implementation of consumer campaigns.
In cooked and processed food, net sales increased due to growth in products that responded to consumer preferences for convenienceand health consciousness, such as Salad Chicken and Umazutsumi Volume Rich Hamburg, in addition to the solid performance ofPizza products such as La Pizza and Pizza Garden.
As a result, the processed food business recorded net sales of 72,525 million yen and operating income of 3,614 million yen as aconsequence of working to improve production efficiency.

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Itoham Yonekyu Holdings Inc.
<Meat business>
In domestic businesses, imported meat was affected by delays in vessel arrival in port due to global congestion in marine containertransport. However, looking at the overall sales situation, while a rise in demand for home cooking food has slowed compared to thesame quarter of the previous year, sales of products for the food service industry and processed food products were recovering. As aresult, net sales increased slightly, combined with the improving market environment. On the profit front, although market pricefluctuations had some impact on procurement costs, steps were taken to improve the profit margin by fully enforcing profitability
management through inventory optimization. Consequently, profits increased.
As for overseas businesses, while ANZCO Foods Ltd. increased production volumes, net sales in foreign currency terms declined
slightly, reflecting the impact of delays in shipments due to global congestion in marine container transport. However, profits increased
as a result of a sales focus on profitability, in addition to the improvement of procurement costs.
As a result, the meat business recorded net sales of 129,016 million yen and operating income of 4,384 million yen.

(2) Description of financial position(Assets, liabilities and net assets)
Total assets at the end of the first three months under review increased 20,769 million yen from the end of the previous fiscal year, to414,856 million yen. This mainly reflects an increase in inventories.
Liabilities totaled 166,986 million yen, an increase of 20,547 million yen from the end of the previous fiscal year. This was mainly due
to increases in notes and accounts payable - trade and short-term loans payable.
Net assets increased 221 million yen from the end of the previous fiscal year, to 247,869 million yen. This was primarily attributable toan increase in foreign currency translation adjustment and a decrease in retained earnings associated with the payment of dividends.
Due to the application of the Accounting Standard for Revenue Recognition, etc., the beginning balance of retained earnings decreased
155 million yen.

(3) Description of future outlook, including consolidated operating results forecasts
There are no changes to the consolidated results forecasts for the first half and the full year of the fiscal year ending December 31,
2022 that were announced on May 10, 2021.

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Itoham Yonekyu Holdings Inc.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Million Yen)
As of March 31, 2021
ASSETS
Current assets
Cash and deposits
Notes and account 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
Net defined benefit assets
Other
Allowance for doubtful receivables
Total investments and other assets
Total non-current assets
Total Assets―4―

As of June 30, 2021

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

46,391
85,95275,955
1,832
22,88913,958(10)
246,969

36,433
28,9191,468
25,7452,758
2,269
97,59536,846
29,684
1,547
25,9452,698
1,275
97,99819,5732,150
21,724

19,223
2,551
21,77529,331
12,162
6,993(105)
48,382
167,702394,086

28,885
12,506
6,824(105)
48,112
167,886
414,856

Itoham Yonekyu Holdings Inc.

(Million Yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term loans payable
Current portion of Long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Asset retirement obligation
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholder's equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholder's equity
Other accumulated comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plan
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets―5―

As of June 30, 2021

56,615
1,660
25,704
155
4,149
6,397
147
467
27,743123,041

67,515
1,621
29,740
155
674
1,762
35
321
40,455142,281

10,717
1,725
1,475
9,477
23,396
146,438

10,6781,733
1,478
10,81524,705
166,986

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

30,00396,624
116,595(3,625)239,597

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

7,105
(437)
(2,033)
2,933
7,567
131
572
247,869
414,856

Itoham Yonekyu Holdings Inc.

(2) Consolidated statements of income and comprehensive income(Consolidated statements of income)(April 1,2020 – March 31, 2021)

Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Equity in income of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent on real estate
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on business transfer
Total extra-ordinary income
Extraordinary loss
Loss on retirement of non-current assets
OthersTotal extra-ordinary expenses
Net income before taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Income attributable to non-controlling interests
Income attributable to owners of parent―6―

Three months ended
June 30, 2020
204,992
172,825
32,16627,137
5,028(Million Yen)
Three months ended
June 30, 2021
202,607
169,11433,49325,939
7,554

18
134
104
242
248
748

9
145
104
447
433
1,140

141
31
87
260
5,516

78
30
160
269
8,425

8
2
‐
11

3
55
24
83

48
9
58
5,468
355
1,404
1,760
3,708
51
3,657

40
0
40
8,467
679
1,868
2,548
5,919
10
5,908

Itoham Yonekyu Holdings Inc.

(Consolidated statements of comprehensive income)(April 1,2020 – March 31, 2021)

Net income
Other comprehensive income
Valuation difference on available-for- sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plan
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―7―

Three months ended
June 30, 2020
3,708

(Million Yen)
Three months ended
June 30, 2021
5,919

349
(141)
(1,505)
48

(197)
(108)
1,092
(114)

(17)

(30)

(1,266)
2,441

641
6,560

2,424
17

6,537
23

Itoham Yonekyu Holdings Inc.

(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(Changes 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”), etc. from the beginning of the first three months under review andrecognize revenue from goods or services which the Company promised to provide at an amount expected to be received in
exchange for the goods or services at the time when control over the promised goods or services has been transferred to a customer.
The application of the Revenue Recognition Accounting Standard follows the provisional treatment stipulated in the proviso of
Paragraph 84 of the Revenue Recognition Accounting Standard. The cumulative effects in the case of retroactively applying the new
accounting policy to before the beginning of the first three months under review are adjusted in retained earnings at the beginning of
the first three months under review, and the new accounting policy is applied from this initial balance.
Major changes as a result of the application of Revenue Recognition Accounting Standard are as follows.
- For buy-sell transactions, in the past the Company recognized consideration received from outsourced companies as revenue.
However, it has now adopted the method of not recognizing this revenue.
- In the past, the Company posted sales commissions and sales promotion support money, etc. that were the consideration 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, in the past the Company recognized revenue at a provisional price at the time of sales and revised the priceaccording 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 the transaction price only the portion that is highly unlikely to causea significant reduction in the recognized revenue.
As a result, during the first three months of the consolidated fiscal year under review, net sales, cost of goods sold, and selling,
general and administrative expenses decreased by 7,613 million yen, 5,300 million yen and 1,827 million yen, respectively, while
operating income, ordinary income and profit before income taxes each decreased by 486 million yen. The balance of retained
earnings at the beginning of the first three months under review also decreased by 155 million yen.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company started applying 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 first three months under review.
Accordingly, the Company will apply new accounting policies prescribed in the Fair Value Measurement Accounting Standard andthe like in the future 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 quarterly
consolidated financial statements.

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Itoham Yonekyu Holdings Inc.
(Segment information)
I. The first three months of the previous fiscal year (from April 1, 2020 to June 30, 2020)
1. Information on net sales and profit or loss for each reportable segment(Million yen)
Reportable segments
Processed
Meat businessfood businessNet sales
Sales to outside
customers
Inter-segment sales
and transfers
Total

Total

Others(Note 1)

Total

Adjustment(Note 2)

Amount inquarterly
consolidated
statement ofincome(Note 3)73,488130,508

203,996995

204,992-

204,992

1,105

6,961

8,067

7,084

15,152(15,152)-

74,593

137,469

212,063

8,080

220,144(15,152)

204,992

Segment income (loss)
2,737
2,806
5,544
(14)
5,529
(500)
5,028
Notes: 1. “Others” represents a business segment comprising the logistics business and personnel and payroll-related operation
services, etc. that are not included in reportable segments.
2. The main content of adjustment of segment income (loss) is the amortization of goodwill of 347 million yen.
3. Segment income (loss) is adjusted to be consistent with the operating income reported in the consolidated statements ofincome.
II. The first three months of the current fiscal year (from April 1, 2021 to June 30, 2021)
1. Information on net sales and profit or loss for each reportable segment(Million yen)
Reportable segments
Processed
Meat businessfood businessNet sales
Sales to outside
customers
Inter-segment sales
and transfers
Total

Total

Others(Note 1)

Total

Adjustment(Note 2)

Amount inquarterly
consolidated
statement ofincome(Note 3)72,525129,016

201,541

1,066

202,607-

202,607

349

6,789

7,139

7,161

14,300(14,300)-

72,874

135,806

208,681

8,227

216,908(14,300)

202,607

Segment income
3,614
4,384
7,998
45
8,044
(490)
7,554
Notes: 1. “Others” represents a business segment comprising the logistics business and personnel and payroll-related operation
services, etc. that are not included in reportable segments.
2. The main content of adjustment of segment income is the amortization of goodwill of 347 million yen.
3. Segment income is adjusted to be consistent with the operating income reported in the consolidated statements of income.
2. 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 three months under review and changed the accounting method for revenue recognition. Reflecting thischange, it has modified the calculation method for business segment income in the same manner.
As a result of this change, net sales and segment income in the processed food business decreased 1,930 million yen and 482 million
yen, respectively, and net sales and segment income in the meat business declined 5,683 million yen and 4 million yen, respectively,
compared to the previous method.

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