Semi-Annual Securities Report
Second Quarter of the 75th Fiscal Year
(From April 1, 2022 to September 30, 2022)1

Marudai Food Co., Ltd.
E004581This Semi-Annual Report has been translated from the Japanese original of the Quarterly Securities Report for theSecond Quarter of the 75th Fiscal Year (from July 1, 2022 to September 30, 2022) pursuant to Article 24-4-7, Paragraph
1 of the Financial Instruments and Exchange Act. This Report covers aggregated numbers for the period April 1, 2022
through September 30, 2022.

1. This is an English translation of the Quarterly Securities Report (“Shihanki Hokokusho”)
pursuant to Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act
filed via the Electronic Disclosure for Investors’ Network (“EDINET”) system as set
forth in Article 27-30-2 of the same Act. The translation includes a table of contents andpagination that are not included in the electronic filing.
2. Appended to the back of this document are the independent auditors’ review report that
was attached to the Quarterly Securities Report when it was filed in the aforementioned
manner, and the confirmation letter that was filed at the same time as the Quarterly
Securities Report.

Contents

Page

Quarterly Securities Report for the Second Quarter of the 75th Fiscal Year
Cover Page ........................................................................................................................................................... 1
Part I Company Information .............................................................................................................................. 2
I. Overview of Company................................................................................................................................ 2
1. Key financial data .............................................................................................................................. 2
2. Description of business ...................................................................................................................... 2
II. Overview of Business................................................................................................................................ 3
1. Business risks ..................................................................................................................................... 3
2. Management analysis of financial position, operating results and cash flows ................................... 3
3. Material contracts, etc. ....................................................................................................................... 5
III. Information about Reporting Company ................................................................................................... 6
1. Company’s shares, etc. ....................................................................................................................... 6
2. Directors (and other officers) ............................................................................................................. 8
IV. Financial Information ............................................................................................................................... 9
1. Quarterly Consolidated Financial Statements ...................................................................................10
2. Other .................................................................................................................................................22
Part II Information about Reporting Company’s Guarantor, etc. ......................................................................23

Independent Auditors’ Review Report on Quarterly Consolidated Financial Statements
Confirmation Letter[Cover Page][Document Title]

Quarterly Securities Report[Clause of Stipulation]

Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act[Place of Filing]

Director-General, Kanto Local Finance Bureau[Filing Date]

November 14, 2022

[Quarterly Accounting Period]

The second quarter of the 75th fiscal year (From July 1, 2022 to September 30, 2022)[Company Name]

Marudai Shokuhin Kabushiki Kaisha[Company Name in English]

Marudai Food Co., Ltd.

[Title and Name of Representative]

Yuji Sato, President and Representative Director[Address of Registered Head Office]21-3 Midori-cho, Takatsuki-shi, Osaka[Telephone Number]

072-661-2518[Name of Contact Person]

Nobuyoshi Katoh, Director, General Manager of Accounting Dept.

[Nearest Place of Contact]

21-3 Midori-cho, Takatsuki-shi, Osaka[Telephone Number]

072-661-2518[Name of Contact Person]

Nobuyoshi Katoh, Director, General Manager of Accounting Dept.

[Place for Public Inspection]

Tokyo Branch of Marudai Food Co., Ltd.
(4-7-5 Tsukiji, Chuo-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)―1―

Part I Company Information
I. Overview of Company
1. Key financial data
Fiscal period

First half of
74th fiscal year

First half of75th fiscal year

74th fiscal year

Period of account(From April 1, 2021
to September 30, 2021)(From April 1, 2022
to September 30, 2022)(From April 1, 2021
to March 31, 2022)

Net sales(Millions of yen)

109,204[55,520]

110,557[56,074]

218,610

Ordinary profit (loss)(Millions of yen)

356

(515)

(380)

Profit (loss) attributable toowners of parent(Millions of yen)

98[(80)](575)[(519)](376)

Comprehensive income(Millions of yen)

(169)

(601)

(1,126)

Net assets(Millions of yen)

76,44873,85175,489Total assets(Millions of yen)

132,622

132,132

128,903

Profit (loss) per share

(Yen)

3.88
[(3.16)](22.87)[(20.68)](14.88)

Diluted profit per share

(Yen)

－

－

－

(%)

57.2

55.4

58.1

Equity ratio

Net cash provided by (used in)(Millions of yen)
4,716
1,136
7,030
operating activities
Net cash provided by (used in)(Millions of yen)
(2,475)(2,928)(5,688)
investing activities
Net cash provided by (used in)(Millions of yen)
(2,113)
1,184(1,826)
financing activities
Cash and cash equivalents at(Millions of yen)
8,604
7,383
7,990
end of period(Notes) 1. As the Company has prepared quarterly consolidated financial statements, key financial data for the reporting company
are not stated.
2. Diluted profit per share is not stated because there is no dilutive security.
3. Figures in square brackets for the net sales, profit (loss) attributable to owners of parent and profit (loss) per share arethose for the second quarter (a three-month period) of the fiscal years.

2. Description of business
There were no significant changes in the description of the business conducted by the Group (the Company and its subsidiaries
and associates) during the first half of the 75th fiscal year.
There were no changes in the key subsidiaries and associates of the Company.

―2―II. Overview of Business
1. Business risks
With regard to the overview of business, financial information and other information stated in this quarterly securities report,
during the first half of the current fiscal year, no events that may have a significant effect on investors’ decision-making occurred
and there were no significant changes in business risks described in the annual securities report for the previous fiscal year.

2. Management analysis of financial position, operating results and cash flows
The forward-looking statements included in the following descriptions are based on our judgment as of September 30, 2022.
(1) Financial position and operating results
During the first half ended September 30, 2022, the Japanese economy continued to slowly pick up, despite the prolonged
impact of the COVID-19 pandemic, driven by the effect of the government’s various policy packages in the transition to the newphase of the era with COVID-19 such as easing of related restrictions. However, the overall outlook for the economy remains
unpredictable mainly because of increase in costs of, as well as tight supply of, raw materials and energy and the fluctuations infinancial and capital markets amid concerns over the downside risk of the Japanese economy prompted by the economic
downturn elsewhere as monetary policies continue to be tightened globally.
The industry in which the Marudai Food Group operates continued to face severe conditions, despite the sign of recovery indemand for the restaurant industry as a result of the easing of COVID-19-related restrictions, as consumers further tried to savemoney due to inflation and decrease in real wages while the manufacturing costs such as raw materials and energy increased,
accelerated by the rapid depreciation of the yen. Regarding the meat market, domestic beef prices had been lower than the levelof the previous year in which demand for domestic beef was recovered. However, the prices are currently at the same level as
the previous year. The local prices of beef and pork from the U.S. have been lower than the previous year’s level due to decreasein demand prompted by inflation but their imported prices have trended high due mainly to the impact of foreign exchange rates.
Domestic pork prices have been higher than the previous year’s level as demand for domestic pork increased due to factors suchas the impact of soaring prices in imported pork.
In this situation, the Group, a comprehensive food manufacturer that supplies consumers with safer and healthier food products,
has pushed ahead with its corporate operations, aiming to be a company whose own value is thoroughly recognized in society.
(Financial position)
Consolidated total assets as of September 30, 2022 were 132,132 million yen, an increase of 3,228 million yen from the endof the previous fiscal year, due mainly to increases in raw materials and supplies of 2,267 million yen, in merchandise andfinished goods of 1,002 million yen, and in notes and accounts receivable - trade of 607 million yen, despite a decrease in cash
and deposits of 607 million yen.
Consolidated liabilities increased by 4,865 million yen from the end of the previous fiscal year to 58,280 million yen, due
mainly to increases in interest-bearing liabilities of 2,852 million yen and in notes and accounts payable - trade of 2,040 million
yen.
Consolidated net assets declined by 1,637 million yen from the end of the previous fiscal year to 73,851 million yen, due
mainly to payment of dividends of surplus of 755 million yen, the recording of loss attributable to owners of parent of 575
million yen, and purchase of treasury shares of 276 million yen.
As a result, the equity ratio of the Company was 55.4%, a decrease of 2.7 percent point from the end of the previous fiscal
year.
(Operating results)
Consolidated net sales during the first half ended September 30, 2022 were 110,557 million yen, an increase of 1.2% year on
year; consolidated operating loss was 754 million yen, compared to consolidated operating profit of 101 million yen for the first―3―

half of the previous fiscal year; consolidated ordinary loss was 515 million yen, compared to consolidated ordinary profit of 356
million yen for the first half of the previous fiscal year; and consolidated loss attributable to owners of parent was 575 million
yen, compared to consolidated profit attributable to owners of parent of 98 million yen for the first half of the previous fiscal
year.
Operating results for each segment are as follows:
1) Processed Food Products operations
The Ham and Sausage Products department carried out promotional activities such as “Wonderful Summer Juicy Campaign”
mainly for its core products, such as “Kunseiya-Ripened Pork Sausage.” In addition, we introduced new products such as“Always Fresh - Special Selection Sausage,” that boasts its rich taste and juicy texture, from the “Always Fresh” series and“Chii-kawa Fish Sausage” that features popular manga characters in order to boost sales. With regard to products for theJapanese summer gift season, we strove to promote sales with “Oh-ha” and “Kosai” series, and by introducing products suchas “Moshio Meister - No Carbohydrate,” that is made of domestic pork. Despite these initiatives, due mainly to decrease insales volume with more consumers having tried to spend less money in the face of increased selling prices, net sales in the
Ham and Sausage Products department decreased by 5.2% year on year.
In the Precooked & Processed Foods department, we carried out promotional activities to improve product recognition for
retort-pouch curry products mainly on the “Bistro Club Beef Curry” series and launched “Chef’s Craft Spicy Chicken Curry”
from the “Chef’s Craft” series as a limited time offer. We also launched new products such as the Kanbi Shokudo (literally
meaning Korean gourmet food) series, semi-ready-made Korean dish that enables consumers to enjoy authentic Korean meals
with ease and the “High-Protein and 0g Carbohydrate Salad Chicken” series that contains more protein than equivalent
ordinary products. In the meantime, the sales of precooked rice products for convenience stores and whipped cream trended
strong. As a result, net sales of the Precooked & Processed Foods department increased by 1.9% year on year.
As a result, net sales in the Processed Food Products operations segment amounted to 73,414 million yen, a decrease of
1.2% year on year. Despite price revisions and our efforts to reduce costs by improving operational efficiency, the said segment
posted segment loss of 767 million yen (compared to segment loss of 239 million yen for the same period of the previous
fiscal year), owing mainly to lower net sales in the Ham and Sausage Products department and increases in costs for raw
materials and energy that exceeded increases in selling prices.
2) Meat Products operations
The overall sales of beef increased from the same period of the previous fiscal year, due mainly to a significant year-onyear increase in sales for the restaurant industry thanks to the easing of COVID-19-related restrictions despite the sluggish
sales of higher-priced domestic beef for large-scale retailers. The sales of both domestic and imported pork increased fromthe same period of the previous fiscal year, due mainly to an increase in the selling prices of products for large-scale retailers
and recovered sales of products for the restaurant industry. The sales of chicken trended strong, due mainly to our efforts to
expand the sales of imported chicken.
As a result, net sales in the Meat Products operations segment increased by 6.6% year on year to 37,075 million yen.
However, as we were not able to sufficiently pass on a significant increase in the purchasing costs, prompted by the rapid
depreciation of the yen and the surge in feed costs, to selling prices, we recorded segment loss of 6 million yen in the Meat
Products operations segment, compared to segment income of 308 million yen for the same period of the previous fiscal year.
3) Other
Net sales in Other segment decreased by 19.8% year on year to 67 million yen, and segment income decreased by 40.1%
year on year to 19 million yen.

―4―(2) Cash flows(Millions of yen)First half ofprevious fiscal year

First half ofcurrent fiscal year

Changes

Net cash provided by (used in) operating
4,716
1,136
(3,579)activities
Net cash provided by (used in) investing(2,475)(2,928)(453)
activities
Net cash provided by (used in) financing(2,113)
1,184
3,297
activities
Net increase (decrease) in cash and cash
128
(607)
－
equivalents
Cash and cash equivalents at end of
8,604
7,383
(1,221)
periodNet cash provided by (used in) operating activities increased by 1,136 million yen due mainly to the recording of depreciation,
despite a negative factor of an increase in working capital.
Net cash provided by (used in) investing activities decreased by 2,928 million yen due mainly to the purchase of non-current
assets to expand and streamline production facilities and to improve product quality, despite the recording of proceeds from saleof non-current assets.
Net cash provided by (used in) financing activities increased by 1,184 million yen due mainly to an increase in interest-bearing
liabilities despite the payment of dividends and the purchase of treasury shares.
As a result, consolidated cash and cash equivalents as of September 30, 2022 decreased by 607 million yen from the end of
the previous fiscal year to 7,383 million yen.
(3) Management policy, management strategy, etc.
There were no significant changes in the management policy, management strategy, etc. of the Group during the first half ofthe current fiscal year.
(4) Business and financial issues to address
There were no significant changes in business and financial issues to address, nor arose new issues, for the Group during thefirst half of the current fiscal year.
(5) Research and development activities
The research and development expenses paid by the Group during the first half of the current fiscal year were 293 million yen
in total.
There were no significant changes in the status of research and development activities of the Group during the first half of thecurrent fiscal year.

3. Material contracts, etc.
There was no decision-making or conclusion of contracts of managerial importance during the first half of the current fiscal year.

―5―III. Information about Reporting Company
1. Company’s shares, etc.
(1) Total number of shares, etc.
1) Authorized shares
As of September 30, 2022
Class

Total number of shares authorized to be issued (Shares)

Common stock

40,000,000

Total

40,000,0002) Issued shares
As of the end of second quarter
As of the filing date (Shares)(Shares)(November 14, 2022)(September 30, 2022)

Class
Common stock

26,505,581

26,505,581

Total

26,505,581

26,505,581

Stock exchange
on which the Company is listed
Tokyo Stock Exchange
Prime Market
Frankfurt Stock Exchange

Details
A minimum
trading unit:
100 shares－－(2) Share acquisition rights
1) Employee share option plans
Not applicable.
2) Share acquisition rights for other uses
Not applicable.
(3) Exercises of moving strike convertible bonds, etc.
Not applicable.
(4) Changes in total number of issued shares, share capital and legal capital surplus

Date

From July 1, 2022
to September 30, 2022

Changes in the Balance of thetotal number of total number of Changes in share Balance of share Changes in legal Balance of legal
issued sharesissued shares
capitalcapitalcapital surplus capital surplus(Thousands of (Thousands of (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen)shares)shares)－26,505

－

―6―

6,716

－

21,685(5) Major shareholders

Name

Address

As of September 30, 2022
Percentage ofshares held to the
Number of
total number ofshares held
issued shares(Thousands of(excluding sharesshares)of treasury
shares) (%)

Marudai Kyoei Kai

21-3 Midori-cho, Takatsuki-shi, Osaka

2,074

8.29

The Master Trust Bank of Japan, Ltd.
(Trust Account)

2-11-3 Hamamatsu-cho, Minato-ku, Tokyo

1,768

7.06

1,192

4.76

1,050

4.19

Kanematsu Corporation
Komori Memorial Foundation

119 Ito-machi, Chuo-ku, Kobe-shi, Hyogo
Prefecture
Inside the Head Office of Marudai Food Co., Ltd.
at 21-3 Midori-cho, Takatsuki-shi, Osaka

Sumitomo Mitsui Banking Corporation

1-1-2 Marunouchi, Chiyoda-ku, Tokyo

887

3.54

Sumitomo Mitsui Trust Bank, Limited

1-4-1 Marunouchi, Chiyoda-ku, Tokyo

864

3.45

Sumitomo Life Insurance Company

7-18-24 Tsukiji, Chuo-ku, Tokyo

860

3.43

The Norinchukin Bank

1-2-1 Otemachi, Chiyoda-ku, Tokyo

642

2.56

Custody Bank of Japan, Ltd. (Trust
Account)

1-8-12 Harumi, Chuo-ku, Tokyo

434

1.73

Rengo Co., Ltd.

Nakanoshima Central Tower, 2-2-7
Nakanoshima, Kita-ku, Osaka-shi, Osaka

308

1.23

10,085

40.30

Total

―

(Notes) 1. Number of shares held is rounded down to the nearest thousand.
2. Percentage of shares held is rounded down to the second decimal place.
3. The Company owns 1,484,918 shares of treasury shares but excludes itself from the major shareholders above.
4. Komori Memorial Foundation is a public interest incorporated foundation established in accordance with the last will of
the Company’s founding president, the late Mr. Toshiyuki Komori. This Foundation is aimed to provide monetary support
for scholarship programs and academic research, among others, using the dividends, etc. gained by managing its baseassets, which mainly consist of the Company’s shares.
5. The following shares fall into the shares related to trust business:
The Master Trust Bank of Japan, Ltd. (Trust Account)
1,768 thousand shares
Custody Bank of Japan, Ltd. (Trust Account)
434 thousand shares
6. The change report on large shareholdings that was made available to the public on August 19, 2022 states that Sumitomo
Mitsui Trust Bank, Limited and its joint holders, Sumitomo Mitsui Trust Asset Management Co., Ltd. and Nikko AssetManagement Co., Ltd., owned the following shares as of August 15, 2022. However, since the Company has not beenable to confirm the actual number of shares alleged to be held by the two companies other than Sumitomo Mitsui Trust
Bank, Limited as of September 30, 2022, the Company does not include the information of those two companies in the
major shareholders above.
The details of the change report on large shareholdings are as follows:
Number of share
Percentage of share
Name
Address
certificates, etc. held certificates, etc. held(Thousands of shares)(%)
Sumitomo Mitsui Trust Bank, Limited

1-4-1 Marunouchi, Chiyoda-ku, Tokyo

864

3.26

Sumitomo Mitsui Trust AssetManagement Co., Ltd.

1-1-1 Shibakoen, Minato-ku, Tokyo

633

2.39

Nikko Asset Management Co., Ltd.

9-7-1 Akasaka, Minato-ku, Tokyo

279

1.05

1,777

6.71

Total

－

7. The large volume holding report that was made available to the public on September 26, 2022 states that SMBC Nikko
Securities Inc. and its joint holder, Sumitomo Mitsui Banking Corporation, owned the following shares as of September
15, 2022. However, since the Company has not been able to confirm the actual number of shares alleged to be held by
SMBC Nikko Securities Inc. as of September 30, 2022, the Company does not include its information in the major
shareholders above.
The details of the large volume holding report are as follows:

―7―

Name

Number of share
Percentage of sharecertificates, etc. held certificates, etc. held(Thousands of shares)(%)

Address

SMBC Nikko Securities Inc.

3-3-1 Marunouchi, Chiyoda-ku, Tokyo

499

1.88

Sumitomo Mitsui Banking Corporation

1-1-2 Marunouchi, Chiyoda-ku, Tokyo

887

3.35

1,387

5.23

Total

－

(6) Voting rights
1) Issued shares
As of September 30, 2022
Category
Shares without voting rights

Number of shares(Shares)Number of voting rights(Units)

Details

－

－

－

－

－

－

Shares with limited voting rights(treasury shares, etc.)
Shares with limited voting rights(others)
Shares with full voting rights(treasury shares, etc.)

－

－

－

(Treasury shares)
Common stock
1,484,900－－

Shares with full voting rights (others)

Common stock

24,984,900

Shares below one unit

Common stock

35,781－－

26,505,581－－

Total number of issued shares

249,849－

Total voting rights held by all
249,849－－
shareholders(Note) The number of shares of common stock in “Shares below one unit” includes 18 treasury shares held by the Company.
2) Treasury shares, etc.

Shareholder

Address of shareholder(Treasury shares)

21-3 Midori-cho, Takatsuki-shi,

Marudai Food Co., Ltd.

Osaka

Total

－

As of September 30, 2022
Number of
Number ofPercentage ofshares held Total number ofshares held
shares held to theunder the names shares held
under own nametotal number ofof others(Shares)(Shares)issued shares (%)(Shares)
1,484,900－

1,484,900

5.60

1,484,900－

1,484,900

5.60

2. Directors (and other officers)
Not applicable.

―8―IV. Financial Information
1. Preparation of the quarterly consolidated financial statements
The Company’s quarterly consolidated financial statements are prepared in accordance with the “Regulation on the Terminology,
Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” (Cabinet Office Ordinance No. 64, 2007 /hereinafter referred to as the “Quarterly Consolidated Financial Statements Regulations”).
The Company prepares its quarterly consolidated statements of income and quarterly consolidated statements of comprehensive
income for each fiscal quarter in accordance with Article 64, Paragraph 3 and Article 83-2, Paragraph 3 of the Quarterly Consolidated
Financial Statements Regulations.
2. Independent auditor’s report
Pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Company’s quarterly consolidated
financial statements for the second quarter (from July 1, 2022 through September 30, 2022) and the first half (from April 1, 2022
through September 30, 2022) of the current fiscal year underwent a quarterly review by KPMG AZSA LLC.

―9―

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets

Previous fiscal year
(As of March 31, 2022)(Millions of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,990
23,436

7,383
24,044Merchandise and finished goods
Work in process

11,227464

12,230552

Raw materials and supplies
Other

5,181
1,522

7,449
1,635

Allowance for doubtful accounts

(10)

(10)

49,81353,28562,794(44,958)

63,491(45,610)

Buildings and structures, net

17,836

17,881

Machinery, equipment and vehicles
Accumulated depreciation

73,270(56,785)

74,588(58,339)

16,485

16,2494,991(3,505)

4,903(3,447)

1,485

1,455

Land

18,722

18,665

Leased assets
Accumulated depreciation

9,205(4,149)

9,736(4,565)

5,055

5,170

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Leased assets, net
Construction in progress

500

764

60,08560,186

Intangible assets

2,267

1,907

Investments and other assets
Investment securities

11,718

11,551

218
16

247
16

Retirement benefit asset
Deferred tax assets

2,130
319

2,306
329

Other
Allowance for doubtful accounts

2,463
(129)

2,421
(119)

Total investments and other assets

16,737

16,752

Total property, plant and equipment

Shares of subsidiaries and associates
Long-term loans receivable

Total non-current assets
Total assets―10―

79,09078,846

128,903

132,132

Previous fiscal year
(As of March 31, 2022)(Millions of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

20,913
8,100

22,954
12,251

Current portion of long-term borrowings
Lease liabilities

2,817
1,084

2,446
1,103

Accounts payable - other
Income taxes payable

6,216
171

6,283
169

Accrued consumption taxes
Provision for bonuses

308
810

252
863

Other

1,308

1,340

Total current liabilities

41,72947,663

Non-current liabilities
Long-term borrowings

4,551

3,509

Lease liabilities
Deferred tax liabilities

4,118
992

4,214
817

Retirement benefit liability
Other

1,378
644

1,412
662

Total non-current liabilities

11,685

10,61753,41458,280Shareholders’ equity
Share capital

6,716

6,716

Capital surplus
Retained earnings

22,08644,13222,08642,800Treasury shares(3,066)(3,342)

Total shareholders’ equity

69,86868,260

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

4,990
71

4,863
100

Foreign currency translation adjustment
Remeasurements of defined benefit plans

33
(133)

60
(97)

Total accumulated other comprehensive income

4,962

4,928

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

―11―

658

662

75,48973,851

128,903

132,132(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income[First half of fiscal year]

Net sales
Cost of sales

First half ofprevious fiscal year
(From April 1, 2021 toSeptember 30, 2021)
109,204
92,599(Millions of yen)First half ofcurrent fiscal year
(From April 1, 2022 toSeptember 30, 2022)
110,557
95,364Gross profit

16,605

15,193

Selling, general and administrative expenses* 16,503* 15,947

Operating profit (loss)

101

(754)

Non-operating income
Interest income

88Dividend income
Rental income from real estate

160
86

162
75

Other

150

133

Total non-operating income

406

380

Interest expenses
Other

111
39

112
28

Total non-operating expenses

151

141

356

(515)

Gain on disposal of non-current assets

129

41

Total extraordinary income

129

41

222

124

Impairment losses
Loss on valuation of investment securities

9
24

－

Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

8

Total extraordinary losses

255

132

Profit (loss) before income taxes

230

(607)

Income taxes - current

134

110

Income taxes - deferred

(16)

(150)

Total income taxes

117

(40)

Profit (loss)

113

(567)

Profit attributable to non-controlling interests

14

8

Profit (loss) attributable to owners of parent

98

(575)

―12―

Quarterly Consolidated Statements of Comprehensive Income[First half of fiscal year]
First half ofprevious fiscal year
(From April 1, 2021 toSeptember 30, 2021)
113(Millions of yen)First half ofcurrent fiscal year
(From April 1, 2022 toSeptember 30, 2022)(567)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(331)
(2)

(126)
29

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

51

35

－

27

Profit (loss)
Other comprehensive income

Comprehensive income

(282)

(34)

(169)

(601)

(184)

(609)

14

8

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―13―

Quarterly Consolidated Statements of Income[Second quarter of fiscal year]

Net sales
Cost of sales

Second quarter ofprevious fiscal year
(From July 1, 2021 toSeptember 30, 2021)
55,52047,117(Millions of yen)
Second quarter ofcurrent fiscal year
(From July 1, 2022 toSeptember 30, 2022)
56,07448,549Gross profit

8,402

7,524

Selling, general and administrative expenses

8,522

8,243

Operating loss

(119)

(718)

Non-operating income
Interest income
Dividend income
Rental income from real estate

4

4

155
41

159
38

Other

52

50

Total non-operating income

254

253

Interest expenses
Other

56
19

57
14

Total non-operating expenses

75

71

58

(536)

Gain on disposal of non-current assets

536

Total extraordinary income

5

36

94

104

9
3

8
－

107

113

(43)

(614)

Income taxes - current

(80)

(35)

Income taxes - deferred

118

(53)

Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on valuation of investment securities
Total extraordinary losses
Loss before income taxes

Total income taxes

38

(88)

Loss

(81)

(525)

Loss attributable to non-controlling interests

(1)

(6)

Loss attributable to owners of parent

(80)

(519)

―14―

Quarterly Consolidated Statements of Comprehensive Income[Second quarter of fiscal year](81)(Millions of yen)
Second quarter ofcurrent fiscal year
(From July 1, 2022 toSeptember 30, 2022)(525)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

186
15

261
14

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

25

17

(4)

11

Second quarter ofprevious fiscal year
(From July 1, 2021 toSeptember 30, 2021)
Loss
Other comprehensive income

Comprehensive income

222

306

141

(219)

142

(213)

(1)

(6)

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―15―

(3) Quarterly consolidated statements of cash flows(Millions of yen)First half ofcurrent fiscal year
(From April 1, 2022 toSeptember 30, 2022)

First half ofprevious fiscal year
(From April 1, 2021 toSeptember 30, 2021)
Cash flows from operating activities
Profit (loss) before income taxes

230

(607)

Depreciation
Impairment losses

3,820
9

3,767
8

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability

(3)
(172)

(11)
(94)

Interest and dividend income
Interest expenses

(169)
111

(171)
112

24
92

－
83

Decrease (increase) in trade receivables
Decrease (increase) in inventories

366(1,485)(601)(3,344)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

2,397
(11)

2,054
(56)

Other, net

(235)

(80)

Subtotal

4,974

1,059

Interest and dividends received
Interest paid

174
(111)

194
(112)

Income taxes paid
Income taxes refund

(179)
62

(144)
159

Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets

Extra retirement payments

(204)

(19)

Net cash provided by (used in) operating activities

4,716

1,136

(18)
(2,914)(18)(3,012)

580
(122)

153
(51)

(2,475)(2,928)Cash flows from investing activities
Purchase of investment securities
Purchase of non-current assets
Proceeds from sale of non-current assets
Other, net
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
Repayments of lease liabilities
Dividends paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities

822

4,151

(1,330)(469)(1,413)
(517)

(761)
(368)

(755)
(276)

(3)

(3)

(2,113)

1,184

Net increase (decrease) in cash and cash equivalents

128

(607)

Cash and cash equivalents at beginning of period

8,476

7,990

* 8,604* 7,383

Cash and cash equivalents at end of period―16―

[Notes](Uncertainties of entity's ability to continue as going concern)
Not applicable.
(Additional information)(Application of “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System”)
The Company and some of its consolidated subsidiaries in Japan have made a transition from a consolidated taxation system
to a group tax sharing system from the first quarter of the current fiscal year. As a result, the Company currently applies the“Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (the Practical Solution No. 42,
August 12, 2021 / hereinafter referred to as the “Practical Solution No. 42”) for the accounting treatment and disclosure
methods for national/regional income taxes and those for tax effect accounting. Pursuant to Paragraph 32 (1) of the Practical
Solution No. 42, we consider that there is no effect caused by the change in accounting policy related to the application of thePractical Solution No. 42.
(Quarterly consolidated statements of income)* Major items and their amount included in selling, general and administrative expenses are as follows:

Distribution expenses

First half of previous fiscal year
(From April 1, 2021
to September 30, 2021)
6,186 million yen

First half of current fiscal year
(From April 1, 2022
to September 30, 2022)
6,003 million yen

3,140 million yen
459 million yen

3,127 million yen
478 million yen

159 million yen(0) million yen

145 million yen
2 million yen

Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision of allowance for doubtful accounts(Quarterly Consolidated statements of cash flows)* Relationship between the cash and cash equivalents at end of period and the amount of quarterly consolidated balance sheet items is
as follows:

Cash and depositsFirst half of previous fiscal year
(From April 1, 2021
to September 30, 2021)
8,604 million yen

First half of current fiscal year
(From April 1, 2022
to September 30, 2022)
7,383 million yen

8,604 million yen

7,383 million yen

Cash and cash equivalents(Shareholders' equity, etc.)

First half of the previous fiscal year (From April 1, 2021 to September 30, 2021)
1. Dividends paid
Resolution

Class ofsharesTotal amount of Dividends per
dividends
share(Millions of yen)
(Yen)

Record date

Effective date

Source ofdividends

Ordinary General
Meeting of
Shareholders held on
June 25, 2021

Commonstock

762

March 31, 2021

June 28, 2021

Retainedearnings30

2. Dividends whose record date falls in the first half ended September 30, 2021, but whose effective date comes after September 30,
2021
Not applicable.

―17―First half of current fiscal year (From April 1, 2022 to September 30, 2022)
1. Dividends paid
Resolution

Class ofsharesTotal amount of Dividends per
dividends
share(Millions of yen)
(Yen)

Record date

Effective date

Source ofdividends

Ordinary General
Meeting of
Shareholders held on
June 24, 2022

Commonstock

755

March 31, 2022

June 27, 2022

Retainedearnings30

2. Dividends whose record date falls in the first half ended September 30, 2022, but whose effective date comes after September 30,
2022
Not applicable.
(Segment information, etc.)[Segment information]
I. First half of the previous fiscal year (From April 1, 2021 to September 30, 2021)
1. Disclosure of sales and profit (loss) and disaggregation of revenues for each reportable segment(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

Reportable segment
Other(Note) 1

Processed
Food
Products
operations

Meat
Products
operations

Ham & Sausage Products

33,028－33,028－33,028－33,028Precooked & Processed
Foods

41,308－41,308－41,308－41,308Meat Products operations－

34,78334,783－34,783－34,783

Other

Total

Total

Net sales

－

－

－

83

83

－

83

Revenues generated fromcontracts with customers

74,33734,783

109,12083

109,204－

109,204

Sales to external customers

74,33734,783

109,12083

109,204－

109,204

－

－

－

373

373

(373)

－

74,33734,783

109,120456

109,577(373)

109,204

(239)

308

68

33

101

－

101

Intersegment sales andtransfers
Total
Segment income (loss)(Notes) 1. The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
2. Segment income (loss) is equal to the operating profit in the quarterly consolidated statements of income.
2. Information on impairment losses on non-current assets or goodwill, etc. by reportable segment(Significant impairment losses on non-current assets)
Impairment losses of 9 million yen have been recognized in the first half of the previous fiscal year due to decrease in recoverable
value for real estate for rent and other not belonging to any segment.

―18―

II. First half of current fiscal year (From April 1, 2022 to September 30, 2022)
1. Disclosure of sales and profit (loss) and disaggregation of revenues for each reportable segment(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

Reportable segment
Other(Note) 1

Processed
Food
Products
operations

Meat
Products
operations

Ham & Sausage Products

31,323－31,323－31,323－31,323

Precooked & Processed
Foods

42,091－42,091－42,091－42,091Meat Products operations－

37,07537,075－37,075－37,075

Other

－

－

－

67

67

－

67

Revenues generated fromcontracts with customers

73,41437,075

110,49067

110,557－

110,557

Sales to external customers

73,41437,075

110,49067

110,557－

110,557

－

－

－

417

417

(417)

－

73,41437,075

110,490484

110,974(417)

110,557

(767)

(6)

(774)

19

(754)

－

(754)

Total

Total

Net salesIntersegment sales andtransfers
Total
Segment income (loss)(Notes) 1. The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
2. Segment income (loss) is equal to the operating loss in the quarterly consolidated statements of income.
2. Information on impairment losses on non-current assets or goodwill, etc. by reportable segment(Significant impairment losses on non-current assets)
Impairment losses of 8 million yen have been recognized in the first half of the current fiscal year due to decrease in recoverable
value for real estate for rent and other not belonging to any segment.

―19―

I. Second quarter of previous fiscal year (From July 1, 2021 to September 30, 2021)
1. Disclosure of sales and profit (loss) and disaggregation of revenues for each reportable segment(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

Reportable segment
Other(Note) 1

Processed
Food
Products
operations

Meat
Products
operations

Ham & Sausage Products

16,958－

16,958－

16,958－

16,958Precooked & Processed
Foods

21,117－

21,117－

21,117－

21,117

Meat Products operations－

17,39817,398－17,398－17,398

Other

－

－

－

45

45

－

45

Revenues generated fromcontracts with customers

38,076

17,39855,47445

55,520－55,520

Sales to external customers

38,076

17,39855,47445

55,520－55,520

－

－

－

194

194

(194)

－

38,076

17,39855,474240

55,714(194)

55,520

(268)

130

(138)

18

(119)

－

(119)

Total

Total

Net salesIntersegment sales andtransfers
Total
Segment income (loss)(Notes) 1. The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
2. Segment income (loss) is equal to the operating loss in the quarterly consolidated statements of income.
2. Information on impairment losses on non-current assets or goodwill, etc. by reportable segment(Significant impairment losses on non-current assets)
Impairment losses of 9 million yen have been recognized in the second quarter of the previous fiscal year due to decrease inrecoverable value for real estate for rent and other not belonging to any segment.

―20―II. Second quarter of current fiscal year (From July 1, 2022 to September 30, 2022)
1. Disclosure of sales and profit (loss) and disaggregation of revenues for each reportable segment(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

Reportable segment
Other(Note) 1

Processed
Food
Products
operations

Meat
Products
operations

Ham & Sausage Products

16,056－

16,056－

16,056－

16,056Precooked & Processed
Foods

21,372－

21,372－

21,372－

21,372Meat Products operations－

18,617

18,617－

18,617－

18,617

Other

－

－

－

28

28

－

28

Revenues generated fromcontracts with customers

37,42818,61756,04528

56,074－56,074

Sales to external customers

37,42818,61756,04528

56,074－56,074

－

－

－

215

215

(215)

－

37,42818,61756,045

243

56,289(215)

56,074

(664)

(59)

(724)

5

(718)

－

(718)

Total

Total

Net salesIntersegment sales andtransfers
Total
Segment income (loss)(Notes) 1. The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
2. Segment income (loss) is equal to the operating loss in the quarterly consolidated statements of income.
2. Information on impairment losses on non-current assets or goodwill, etc. by reportable segment(Significant impairment losses on non-current assets)
Impairment losses of 8 million yen have been recognized in the second quarter of the current fiscal year due to decrease inrecoverable value for real estate for rent and other not belonging to any segment.
(Financial instruments)
Short-term borrowings have become important for the operation of the corporate group and their amount recorded on thequarterly consolidated balance sheets significantly differs from the one at the end of the previous fiscal year. However, theinformation is omitted as neither the difference between the amount recorded on the balance sheets for the second quarter of thecurrent fiscal year and their market value nor the one between the amount recorded on the balance sheets for the previous fiscal
year and their market value is material.
(Revenue recognition)
The breakdown of revenues generated from contracts with customers is shown in “[Notes] (Segment information, etc.)”―21―

(Per share information)
First half of fiscal year
The amounts of profit (loss) per share and the basis of calculation thereof are as follows:First half of previous fiscal year
Item
(From April 1, 2021
to September 30, 2021)
Profit (loss) per shareFirst half of current fiscal year
(From April 1, 2022
to September 30, 2022)

3.88 yen(22.87 yen)

98

(575)

－

－

98

(575)

25,36725,165(Basis of calculation)
Profit (loss) attributable to owners of parent(Millions of yen)Amount not attributable to common shareholders(Millions of yen)
Profit (loss) attributable to owners of parent
associated with common stock (Millions of yen)
Weighted average number of common shares during
the period (Thousand shares)(Note) Diluted profit per share is not stated because there is no dilutive security.
Second quarter of fiscal year
The amounts of loss per share and the basis of calculation thereof are as follows:
Item

Second quarter of previous fiscal year
(From July 1, 2021
to September 30, 2021)

Loss per share

Second quarter of current fiscal year
(From July 1, 2022
to September 30, 2022)(3.16 yen)

(20.68 yen)

(80)

(519)

－

－

(80)

(519)

25,33325,135(Basis of calculation)
Loss attributable to owners of parent(Millions of yen)Amount not attributable to common shareholders(Millions of yen)
Loss attributable to owners of parent associated with
common stock (Millions of yen)
Weighted average number of common shares during
the period (Thousand shares)(Note) Diluted profit per share is not stated because there is no dilutive security.
(Significant events after reporting period)
At the Board of Directors’ meeting of the Company held on November 11, 2022, it was resolved to sell part of investment securities
held by the Company. As a result, extraordinary income (gain on sale of investment securities) is expected to be recorded.
1. Reason for the sale

For more efficient use and optimal allocation of management resources

2. Timing of the sale

To be completed by March 31, 2023

3. Details of the sale(1) Type of asset to be sold:

Listed securities held by the Company (1 issue)(2) Gain on sale (estimated): Approximately 600 million yen

2. Other
Not applicable.

―22―Part II Information about Reporting Company’s Guarantor, etc.
Not applicable.

―23―Independent Auditors’ Review Report on Quarterly Consolidated Financial Statements
November 11, 2022
To the Board of Directors of Marudai Food Co., Ltd.
KPMG AZSA LLC
Osaka Office
Takahide Nakahata
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Satoru Komatsuno
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Conclusion of Auditors
Pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act of Japan, we have reviewed the quarterly
consolidated financial statements of Marudai Food Co., Ltd. included in “Financial Information” in the quarterly securities report forthe second quarter (from July 1, 2022 to September 30, 2022) and the first half (from April 1, 2022 to September 30, 2022) of the fiscal
year from April 1, 2022 to March 31, 2023, which comprise the quarterly consolidated balance sheets, the quarterly consolidated
statements of income, the quarterly consolidated statements of comprehensive income, the consolidated statements of cash flows andnotes thereof.
In our opinion, the quarterly consolidated financial statements referred to above are not considered to inappropriately state, in allmaterial respects, the financial positions of Marudai Food Co., Ltd. and its consolidated subsidiaries as of September 30, 2022, and theirresults of operations for the second quarter as well as the first half of the fiscal year then ended and their cash flows for the same firsthalf in light of standards for the preparation of quarterly consolidated financial statements generally accepted in Japan.

Basis for the Auditors’ Conclusion
We conducted our quarterly review in accordance with quarterly review standards generally accepted in Japan. Our responsibility
under the quarterly review standards is stated in “Auditor’s Responsibility for the Quarterly Review of the Quarterly Consolidated
Financial Statements.” We are independent of the Company and its consolidated subsidiaries in accordance with the provisions related
to professional ethics in Japan, and are fulfilling other ethical responsibility as an auditor. We believe that we have obtained evidence
to provide a basis for our conclusion.
Responsibilities of the Management, Statutory Auditors and the Board of Statutory Auditors for the Quarterly Consolidated Financial
Statements
The management is responsible for the preparation and fair presentation of the quarterly consolidated financial statements inaccordance with standards for the preparation of quarterly consolidated financial statements generally accepted in Japan, and fordesigning and operating such internal control as the management determines is necessary to enable the preparation and fair presentationof the quarterly consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, the management is responsible for assessing whether it is appropriate toprepare the quarterly consolidated financial statements in accordance with the premise of a going concern, and for disclosing mattersrelating to going concern when it is required to do so in accordance with standards for the preparation of quarterly consolidated financial
statements generally accepted in Japan.

―24―

Statutory Auditors and the Board of Statutory Auditors are responsible for monitoring the execution of Directors’ duties related todesigning and operating the financial reporting process.
Auditor’s Responsibility for the Quarterly Review of the Quarterly Consolidated Financial Statements
Our responsibility is to express a conclusion on the quarterly consolidated financial statements from an independent standpoint in aquarterly review report, based on our quarterly review.
Auditors make professional judgment in the quarterly review process in accordance with quarterly review standards generally
accepted in Japan, and perform the following while maintaining professional skepticism.
- Conduct quarterly review procedures including interviews with the management, those who are responsible for the matters related to
the Company’s finance and accounting and other relevant parties as well as analytical procedures. Quarterly review procedures are
conducted with a narrower scope compared to the audits of full-year financial statements that are carried out in accordance withauditing standards generally accepted in Japan.
- If the auditor judges that there is significant uncertainty in regard to events or conditions that may cast significant doubt on the entity’s
ability to continue as a going concern, determine, based on the obtained evidence, whether no item is believed to be inappropriately
stated in the quarterly consolidated financial statements, in light of standards for the preparation of quarterly consolidated financial
statements generally accepted in Japan. If there is a significant uncertainty concerning the premise of a going concern, the auditor isrequired to call attention to the notes to the quarterly consolidated financial statements in the quarterly review report, or if the notes
to the quarterly consolidated financial statements pertaining to the significant uncertainty are inappropriate, issue a qualified
conclusion or negative conclusion on the quarterly consolidated financial statements. While the conclusions of the auditor are basedon the evidence obtained up to the date of the quarterly review report, depending on future events or conditions, an entity may beunable to continue as a going concern.

- Besides assessing whether no items and notes thereto in the quarterly consolidated financial statements are believed to deviate fromstandards for the preparation of quarterly consolidated financial statements generally accepted in Japan, assess the presentation,
structure, and content of the quarterly consolidated financial statements including related notes, and whether the quarterly
consolidated financial statements are believed to inappropriately state the transactions and accounting events on which they are based.
- Obtain evidence regarding the financial information of the Company and its consolidated subsidiaries in order to express a conclusionon the quarterly consolidated financial statements. The auditor is responsible for instructing, supervising, and implementing thequarterly review of the quarterly consolidated financial statements, and is solely responsible for its conclusion.
The auditor reports to Statutory Auditors and the Board of Statutory Auditors regarding the scope and timing of implementation of
the planned quarterly review and material findings thereof.
The auditor reports to Statutory Auditors and the Board of Statutory Auditors regarding the observance of provisions related toprofessional ethics in Japan as well as matters that are reasonably considered to have an impact on the auditor’s independence and any
safeguards that are in place to reduce or eliminate obstacles.

Conflicts of Interest
There are no special interests between the engagement partners/audit firm and the Company or its consolidated subsidiaries thatshould be disclosed under the provisions of the Certified Public Accountants Act.
End
(Notes) 1. The above is an electronic version of the original copy of the Independent Auditors’ Review Report on Quarterly
Consolidated Financial Statements, and the original report is maintained by the Company (a company that files quarterly
securities reports).
2. XBRL data are not subject to the quarterly review.

―25―

[Cover Page][Document Title]

Confirmation Letter[Clause of Stipulation]

Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act[Place of Filing]

Director-General, Kanto Local Finance Bureau[Filing Date]

November 14, 2022

[Company Name]

Marudai Shokuhin Kabushiki Kaisha[Company Name in English]

Marudai Food Co., Ltd.

[Title and Name of Representative]

Yuji Sato, President and Representative Director[Title and Name of Chief Financial Officer]

Not applicable.

[Address of Registered Head Office]21-3 Midori-cho, Takatsuki-shi, Osaka[Place for Public Inspection]

Tokyo Branch of Marudai Food Co., Ltd.
(4-7-5 Tsukiji, Chuo-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)―26―

1. Appropriateness of contents of quarterly securities report
Yuji Sato, the Company’s President and Representative Director, confirms that the contents of the Company’s quarterly securities
report for the second quarter of the 75th fiscal year (from July 1, 2022 to September 30, 2022) are appropriately presented inaccordance with the Financial Instruments and Exchange Act.

2. Special note
There is nothing to report.

―27―

Certification

regarding the registration as a third-country audit firm according to § 134 Section 1
in conjunction with § 38 number 5 WPO (German Public Accounting Act)KPMG AZSA LLC, Tokyo/Japanis registered as a third-country audit firm in the public professional register of the
Wirtschaftsprüferkammer effective April 12, 2022, registration number 205001600 after
compliance with the requirements for registration according to § 134 Section 2 WPO.
With regard to the activity according to § 134 Section 1 WPO, the aforementioned firm issubject to the provisions of quality control (§§ 57a – 57g WPO), professional oversight(§§ 61a – 71 WPO), as well as professional jurisdiction (§§ 71a – 127 WPO). A quality
assurance review may be waived if the registered third-country audit firm has already been
subject to a quality assurance review in another member state of the European Union within
the past three years. The same applies if within the past three years a quality assurance reviewof the third-country audit firm has been performed in a third country, provided that the quality
assurance review of that country was recognized as being equivalent based on an evaluationaccording to § 134 Section 4 WPO.

Berlin, April 12, 2022

Dr. Peter Uhlmann
Head of Division Member Affairs

Manuela Schwoy
Head of Department Member Affairs