SEMI-ANNUAL REPORT 2011
For the Six-Month Period Ended 30th September, 2011

TO OUR SHAREHOLDERSFirst of all, I offer my deepest sympathy to all the people affected by the Great East Japan Earthquake and I
wish for the earliest possible recovery of the stricken communities.
I welcome this opportunity to report to our shareholders on the business results for the six-month period
ended 30th September, 2011.
During the first six-month period of the fiscal year ending 31st March, 2012, the Japanese economy showedsome signs of recovery, as production, which had dropped in the aftermath of the earthquake, picked up.
However, the outlook for the Japanese economy remains uncertain owing to the strong yen and weak shareprices—factors exacerbated by fiscal problems in Europe and concerns about the slowing of the U.S.
economy.
The meat-packing industry continues to face a challenging situation, such as a decline in prices that reflects
consumers’ orientation towards low prices, sharp rises in prices of raw materials and fuels, and deteriorationof the market environment for meat sales because of caesium contamination.
In these circumstances, we strove to provide safer and more reliable foods by adhering to the Marudai FoodGroup’s policies of putting the customer first, thorough compliance, and emphasis on safety and quality. At
the same time, we implemented a diversification strategy and initiatives to reinforce Group management andstrengthen product development capabilities.
As a result, consolidated net sales for the first six-month period increased by 1.5% compared with the same
period of the previous year to 100,597 million yen. Operating income rose by 2.1% to 3,315 million yen, andnet income by 1.4% to 2,734 million yen.
The overview of results by business segment is as follows.
Regarding the Processed Foods business, amid the trends towards eating-in in the wake of the earthquake,the Ham and Sausage Products operation sought to increase sales of the Company’s mainstay products,“Kunseiya Jyukusei Vienna Sausage,” while at the same time made efforts to promote sales of “Itsumo
Shinsen Roast Ham,” “Kiriotoshi Nama Ham” and other products by actively proposing menus that cateredto the public’s desire to eat at home. Also, in terms of midsummer gift products, our mainstay brands,
namely, “Ouha” and “Kosai” steadily increased sales, which resulted in a 3.0% increase in sales for thissegment compared to the same period of the previous year.
In the Precooked & Processed Foods operation, sales increases were reported in retort-pouch foods,including the Korean-style soup “Sundubu,” and “Umami Kobo Curry.” Additionally our efforts to increase
sales of the “Sweet Cafe” dessert products, the “Tapioca Time” beverage products and the “Custard Vanilla1

Yogurt” were rewarded with a 1.9% increase in the sales of this segment compared to the same period of theprevious year.
As a result, sales of the Processed Foods segment amounted to 74,616 million yen, up 2.5 % from the same
period of the previous year. Operating income, despite the harsh environment, including the soar of material
and fuel prices, rose by 4.7% to 3,125 million yen, thanks to increased sales and the effects of cost cuts inboth the production and sales divisions.
In the Meat business, despite the sluggish growth in demand reflecting the customers’ preference for lowpriced foods, we managed to increase the sales volume of U.S.-bred beef through our efforts towards salesexpansion. However, this did not translate into increased sales due to the plunge in domestic beef prices,which was caused by the fear of caesium contamination, among other factors. Pork sales also struggled dueto the fall in sales volume, which was precipitated by continuing high pork prices. As a result, sales of theMeat segment amounted to 25,779 million yen, down 1.4% from the same period of the previous year.
Operating income declined by 42.9% to 101 million yen, due to the deteriorating profitability of Australianbred beef sales.
Sales of the Other Products business were 200 million yen, down 5.8% from the same period of the previousyear; operating income increased by 3.6% to 87 million yen.
We would appreciate the continued support and cooperation of our shareholders.

Tokuo Kudara
President

2

MARUDAI FOOD CO., LTD.
CONSOLIDATED BALANCE SHEETS
30th September, 2010 and 2011
(Unaudited)

Millions of yen

2010

Thousands of U.S.
dollars (Note)20112011¥13,784$179,830

21,221357(52)15,0522,263
684
53,309276,856
4,658(678)
196,373
29,524
8,924
695,487

8,360
54
5,902
(364)
13,952

8,194
67
7,586(378)15,469106,902874
98,969(4,932)201,813

19,49145,556
48,584276
7,586
121,493(70,025)
51,468
978¥116,344

18,71645,315
48,628521
8,237
121,417(72,054)
49,363
701¥118,842

244,175
591,194
634,416
6,797
107,462
1,584,044(940,039)
644,005
9,145$1,550,450

ASSETS

Current assets:
Cash and cash equivalents ......................................................... ¥8,910
Receivables:
Trade notes and accounts ......................................................
21,037
Other......................................................................................
363
Allowance for doubtful accounts ..........................................
(53)
Inventories .................................................................................
17,673
Deferred tax assets ....................................................................
1,445
Advances and other current assets .............................................
571
Total current assets ...............................................................
49,946
Investments and other assets:
Investment securities .................................................................
Deferred tax assets ....................................................................
Other ..........................................................................................
Allowance for doubtful accounts ..............................................
Total investments and other assets .......................................
Property, plant and equipment, at cost:
Land ...........................................................................................
Buildings and structures ............................................................
Machinery and equipment .........................................................
Construction in progress ............................................................
Lease assets ...............................................................................
Less accumulated depreciation ..................................................
Net property, plant and equipment ........................................
Intangible assets ...........................................................................
Total assets ....................................................................................

See accompanying the note.

3Thousands of U.S.
dollars (Note)

Millions of yen

2010

2011

2011

¥487
8,072
19,542
1,345
2,423
589
5,384
37,842¥6,402
6,858
19,575
1,196
2,403
510
6,264
43,208$83,523
89,472
255,382
15,60331,3506,654
81,722563,706

9,288
1,103
3,384534
451
14,760

3,275
1,493
3,487
622
493
9,370

42,727
19,47845,492
8,115
6,432
122,244

LIABILITIES AND NET ASSETS

Current liabilities:
Short-term borrowings ..............................................................
Long-term debt due within one year .........................................
Trade notes and accounts payable .............................................
Short-term lease obligations ......................................................
Accrued expenses ......................................................................
Accrued income taxes ...............................................................
Other current liabilities ..............................................................
Total current liabilities ..........................................................
Long-term liabilities:
Long-term debt due after one year ............................................
Deferred tax liabilities ...............................................................
Long-term lease obligations ......................................................
Employees’ severance and retirement benefits .........................
Other long-term liabilities .........................................................
Total long-term liabilities ......................................................

4

See accompanying the note.

Thousands of U.S.
dollars (Note)

Millions of yen

2010

2011

2011

Shareholders’ equity:
Common stock ...........................................................................
Capital surplus ...........................................................................
Retained earnings ......................................................................
Less treasury stock, at cost ........................................................
Total shareholders’ equity ....................................................

6,716
21,68633,118(58)
61,462

6,716
21,68635,972(697)
63,677

87,619282,922469,302(9,093)
830,750

Accumulated other comprehensive income:Unrealised gains on securities ...................................................
Deferred losses on hedges .........................................................
Foreign currency translation adjustments .................................
Total accumulated other comprehensive income ..................

1,157
(2)
(60)
1,095

1,151
(36)
(84)
1,031

15,016(470)(1,096)
13,450Minority interests .........................................................................
1,185
Total net assets ..........................................................................
63,742
Total liabilities and net assets ..................................................... ¥116,344

1,556
66,264¥118,842

20,300864,500$1,550,450

NET ASSETS

5MARUDAI FOOD CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME
Six months ended 30th September, 2010 and 2011
(Unaudited)Thousands of U.S.
dollars (Note)

Millions of yen

2010

2011

2011

¥99,148
72,947
26,201
22,954
3,247¥100,597
74,495
26,102
22,7873,315$1,312,420
971,885
340,535
297,286
43,249

Income before income taxes and minority interests ..................

111
(250)
131
(79)
(32)
(324)
169
(274)
2,973

122
(211)
(114)
(1)
(22)
(75)
196
(105)
3,210

1,591
(2,753)(1,487)
(13)
(287)
(978)
2,557
(1,370)41,879

Income taxes:
Current .......................................................................................
Deferred .....................................................................................
Income before minority interests .................................................
Minority interests .........................................................................

497
(472)
2,948
(253)

424(198)
2,984
(250)

5,532
(2,583)38,930(3,261)

Net income ....................................................................................

¥2,695

Net sales ........................................................................................
Cost of sales ..................................................................................
Gross profit ................................................................................
Selling, general and administrative expenses ............................
Operating income ......................................................................
Other income (expenses):
Interest and dividend income ....................................................
Interest expense .........................................................................
Loss on disposal of property, plant and equipment, net ............
Write-down of investment in securities ....................................
Loss on foreign exchange ..........................................................
Loss on impairment of assets ....................................................
Other-net ....................................................................................

¥ 2,734
Yen

6$35,669
U.S. Dollars (Note)

Net income per share ...................................................................

¥20.38¥21.05$0.27

Net income, diluted per share .....................................................

———

Dividends per share .....................................................................

¥7.00¥8.00$0.10

See accompanying the note.

MARUDAI FOOD CO., LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended 30th September, 2010 and 2011
(Unaudited)Millions of yen

Income before minority interests
Other comprehensive income:Unrealised losses on securities ..................................................
Deferred losses on hedges .........................................................
Foreign currency translation adjustments ..................................
Total other comprehensive income .......................................
Comprehensive income ................................................................
Comprehensive income attributable to:
Owners of the parent .................................................................
Minority interests ......................................................................

See accompanying the note.

Thousands of U.S.
dollars (Note)

2010

2011

2011

¥2,948¥2,984$38,930(528)(6)
27(507)¥2,441(355)(36)
8(383)¥2,601(4,631)(470)
104(4,997)$33,933¥2,188¥253¥2,351¥250$30,672$3,2617

MARUDAI FOOD CO., LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 30th September, 2010 and 2011
(Unaudited)

Millions of yen
Number ofshares ofCommon
common stock
stock

8

Foreigncurrencytranslation
adjustments

Minorityinterests¥4¥(88)¥937————————(528)——————

—

28248

—

—

—

(6)

—

—

UnrealisedDeferred¥(57)¥1,685

—

—

(927)

—

—

—

—
—

CapitalsurplusRetainedearnings

Treasury
gains
gains
stock
on securities on hedges

Balance at 31st March, 2010 ................... 132,527,909 ¥6,716
Net income .........................................
——Cash dividends paid - ¥7 per share .....
——
Decrease in unrealised gains
on securities .....................................
——
Foreign currency translation
adjustments ......................................
——
Decrease in deferred gains on hedges .....
——
Purchase of treasury stock ..................
——
Balance at 30th September, 2010 ........... 132,527,909 ¥6,716¥21,686¥31,349

—

2,695

—

—

—

(1)

—

—

—

—

¥21,686¥33,117¥(58)¥1,157

¥(2)

¥(60)

¥1,185

Balance at 31st March, 2011 ................... 132,527,909 6,716
Net income .........................................
——Cash dividends paid - ¥8 per share .....
——
Decrease in unrealised gains
on securities .....................................
——
Foreign currency translation
adjustments ......................................
——
Decrease in deferred gains on hedges .....
——
Purchase of treasury stock ..................
——
Balance at 30th September, 2011 ........... 132,527,909 ¥6,716

21,68634,277(697)

1,506

1(92)

1,314

—

2,734

—

—

—

—

—

—

(1,039)

—

—

—

—

—

—

—

—

(355)

—

—

—

—

—

—

—

—

8242

—

—

—

—

(37)

—

—

—

—

(0)

—

—

—

—

¥21,686¥35,972¥(697)¥1,151

¥(36)

¥(84)

¥1,556

See accompanying the note.

Thousands of U.S. dollars (Note)
Unrealised

Deferred

Balance at 31st March, 2011 ........................................... $87,619 $282,922 $447,189 $(9,093) $19,648
Net income .................................................................
——
35,668——Cash dividends paid - ¥8 per share .............................
—— (13,555)——
Decrease in unrealised gains on securities .................
————(4,632)Foreign currency translation adjustments ...................
—
—
—
—
—
Decrease in deferred gains on hedges ........................
—
—
—
—
—
Purchase of treasury stock ..........................................
—
—
—
(0)
—
Balance at 30th September, 2011 ................................... $87,619 $282,922 $469,302 $(9,093) $15,016$13Commonstock

CapitalsurplusRetainedearnings

Treasury
gains
gains
stock
on securities on hedges

Foreigncurrencytranslation
adjustments

Minority
interests$(1,200) $17,143

—

—

—

—

—

—

—

—

—

—

104

3,157

(483)

—

—

—

—

—

$(470) $(1,096) $20,300

9MARUDAI FOOD CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended 30th September, 2010 and 2011
(Unaudited)Thousands of U.S.
dollars (Note)

Millions of yen

Cash flows from operating activities:
Income before income taxes and minority interests ..................
Depreciation and amortisation ..................................................
Increase in allowance for doubtful accounts .............................
Decrease in severance and retirement benefits ..........................
Interest and dividend income ....................................................
Interest expense .........................................................................
Write-down of investment in securities .....................................
Loss (gain) on disposal of property, plant and equipment, net ...
Loss on impairment of assets ....................................................
Increase in receivables ...............................................................
Increase in inventories ...............................................................
Increase in trade notes and accounts payable ............................
Interest and dividends received .................................................
Interest paid ...............................................................................
Increase in consumption tax payable ........................................
Income taxes paid ......................................................................
Other, net ...................................................................................
Net cash provided by operating activities .............................
Cash flows from investing activities:
Purchase of property, plant and equipment ...............................
Proceeds from sale of property, plant and equipment ...............
Purchase of short-term investments
and investment securities ......................................................
Proceeds from sale of short-term investments
and investment securities ......................................................
Other, net ...................................................................................
Net cash used in investing activities .....................................

10

See accompanying the note.

2010

2011

2011

¥2,9733,008
29(384)(112)
250
79(131)324(1,217)(3,104)1,130
140(250)
(203)
(355)
(137)
2,040

¥3,2102,888
14(424)(122)211111475(1,305)(455)
1,397
149(210)
(62)
(715)
455
5,221

$41,880
37,678183(5,532)(1,592)
2,753
13
1,486
978
(17,025)(5,936)
18,226
1,944(2,740)(809)(9,328)
5,936
68,115(1,682)607(2,132)
124(27,815)
1,618

(16)

(15)

(196)

2(221)(1,310)0(175)(2,198)0(2,283)(28,676)

Millions of yen

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings .....................
Proceeds from long-term debt ...................................................
Repayment of long-term debt ....................................................
Cash dividends paid ...................................................................
Repayment of lease obligations .................................................
Other, net ...................................................................................
Net cash used in financing activities .....................................
Effect of exchange rate changes oncash and cash equivalents .......................................................
Net increase (decrease) in cash and cash equivalents ...............
Cash and cash equivalents at beginning of year ........................
Cash and cash equivalents at end of year ..................................

Thousands of U.S.
dollars (Note)

2010

2011

2011

(498)
4,004
(4,312)
(926)
(697)
(6)
(2,435)1,864
500(3,471)(1,039)(670)(5)(2,821)

24,3186,523(45,284)(13,555)(8,741)(65)(36,804)(1)(1,706)
10,616¥8,9100
202
13,582¥13,784

0
2,635
177,195$179,830

11

MARUDAI FOOD CO., LTD.
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Basis of financial statements
Marudai Food Co., Ltd. (the "Company") and its consolidated domestic subsidiaries maintaintheir official accounting records in Japanese yen and in accordance with the provisions set
forth in the Japanese Company Law and accounting principles and practices generallyaccepted in Japan ("Japanese GAAP"). The accounts of overseas subsidiaries are based on theiraccounting records maintained in conformity with generally accepted accounting principles
and practices prevailing in the respective countries of domicile. Certain accounting principles
and practices generally accepted in Japan are different from International AccountingStandards and standards in other countries in certain respects as to application and disclosure
requirements. Accordingly, the accompanying financial statements are intended for use by
those who are informed about Japanese accounting principles and practices. These financial
statements should be read along with the Annual Report to Shareholders for the year ended
31st March 2011.
The translation of the Japanese yen amounts into U.S. dollars are included solely for theconvenience of readers, using the prevailing exchange rate at 30th September, 2011, whichwas ¥76.65 to U.S.$1.00. The convenience translations should not be construed asrepresentations that the Japanese yen amounts have been, could have been, or could in thefuture be, converted into U.S. dollars at this or any other rate of exchange.

12DIRECTORS AND STATUTORY AUDITORS (As of 30th September, 2011)

President andTokuo Kudara
Representative Director
Senior Executive
Managing Director

Keiichi KatoToshiharu Inoue

Managing Directors

Yoshikazu Sawanaka
Yasushi Sawada
Masahiro Oshima

Directors

Tomoyuki Tanabe
Masaaki Sugiyama
Jiro Tsuge

Statutory Auditors

Naoki Iwamoto
Yasumi Shukuri
Hiroshi Kitabayashi

OUTLINE OF THE COMPANY (As of 30th September, 2011)
EstablishedStated Capital
Number of EmployeesHead Office
Branch Office
Sales Offices
PlantsOverseas Office

10th June, 1958
¥6,716,252,022
2,312
21-3 Midori-cho, Takatsuki-shi, Osaka, Japan
Telephone: 81-72-661-2518 Fax: 81-72-661-5006
4-7-5 Tsukiji, Chuouku, Tokyo, JapanThe sales headquarters at the Company’s head office in Osaka controls
13 distribution centers and 6 regional sales departments which service
60 local outlets.
Hokkaido, Iwate, Niigata, Kanto,Soka, Ibaraki, Yokosuka, Shounan, Shizuoka,
Matsusaka, Takatsuki, Hyogo, Okayama,
Hiroshima, Karatsu
Chicago, U.S.A.

13