Semi-Annual Securities Report
Second Quarter of the 76th Fiscal Year
(From April 1, 2023 to September 30, 2023)1

Marudai Food Co., Ltd.
E004581This Semi-Annual Report has been translated from the Japanese original of the Quarterly Securities Report for the Second Quarter ofthe 76th Fiscal Year (from July 1, 2023 to September 30, 2023) 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, 2023 through September 30, 2023.

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 76th 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, 2023

[Quarterly Accounting Period]

The second quarter of the 76th fiscal year (From July 1, 2023 to September 30, 2023)[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]

Yoshifumi Morimoto, Executive Officer, 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]

Yoshifumi Morimoto, Executive Officer, 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 of75th fiscal year

First half of
76th fiscal year

75th fiscal year

Period of account(From April 1, 2022
to September 30, 2022)(From April 1, 2023
to September 30, 2023)(From April 1, 2022
to March 31, 2023)

Net sales(Millions of yen)

110,557[56,074]

114,118[57,854]

221,979

Ordinary profit (loss)(Millions of yen)

(515)

1,738

(897)

Profit (loss) attributable toowners of parent(Millions of yen)(575)[(519)]

983[6](4,987)

Comprehensive income(Millions of yen)

(601)

2,794

(5,438)

Net assets(Millions of yen)

73,851

71,02769,014

Total assets(Millions of yen)

132,132

135,450

126,261

Profit (loss) per share(Yen)(22.87)[(20.68)]

39.34[0.27](198.77)

Diluted profit per share

(Yen)

－

－

－

(%)

55.4

51.9

54.1

Equity ratio

Net cash provided by (used in)(Millions of yen)
1,136
2,963
2,906
operating activities
Net cash provided by (used in)(Millions of yen)
(2,928)(3,404)(4,516)
investing activities
Net cash provided by (used in)(Millions of yen)
1,184
2,173
534
financing activities
Cash and cash equivalents at(Millions of yen)
7,383
8,648
6,916
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 76th 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, 2023.
(1) Financial position and operating results
During the first half ended September 30, 2023, the Japanese economy saw the sign of gradual recovery in the economy, as
the reclassification of COVID-19 to a Category V infectious disease led to further relaxation of behavioral restrictions, with
inbound demand back on a recovery track, and signs of improvement emerged in the employment and income environment.
However, the overall outlook for the economy remains uncertain mainly because the downturn in the overseas economy posesa risk of depressing the Japanese economy, including the impact of continued monetary tightening worldwide and concerns
about the future of the Chinese economy, and also because we are facing price hikes and fluctuations in financial capital markets,among others.
The industry in which the Marudai Food Group operates continued to face severe conditions, despite the sign of recovery inpersonal consumption and inbound demand, as successive price hikes in necessities of life arising from rising raw material,
energy, logistic, and other costs further raised consumers’ budget-consciousness. Regarding the meat market, domestic beef
prices have been lower than the previous year’s level due mainly to a drop in demand, weighed down by higher prices andresultant higher sales prices. On the other hand, prices of the beef produced in the U.S. far exceeded the previous year’s level
due to a decrease in production. Meanwhile, pork prices, both domestic and imported, remained at high levels due mainly tosoaring feed prices and a demand shift from beef prompted by inflation. In addition, the impact of foreign exchange rates andother factors have caused imported pork prices to trend high.
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, 2023 were 135,450 million yen, an increase of 9,189 million yen from the endof the previous fiscal year, due mainly to increases in notes and accounts receivable - trade of 4,545 million yen, in investment
securities of 2,454 million yen, in cash and deposits of 1,732 million yen, and in raw materials and supplies of 1,446 million
yen.
Consolidated liabilities increased by 7,176 million yen from the end of the previous fiscal year to 64,423 million yen, due
mainly to increases in interest-bearing liabilities of 3,355 million yen, in notes and accounts payable - trade of 3,332 million yen,
and in deferred tax liabilities of 625 million yen, despite a decrease in accounts payable – other of 1,118 million yen.
Consolidated net assets increased by 2,012 million yen from the end of the previous fiscal year to 71,027 million yen, due
mainly to an increase in valuation difference on available-for-sale securities of 1,703 million yen and the recording of profit
attributable to owners of parent of 983 million yen, despite payment of dividends of surplus of 500 million yen and purchase oftreasury shares of 277 million yen.
As a result, the equity ratio of the Company was 51.9%, a decrease of 2.2 percent point from the end of the previous fiscal
year.
(Operating results)
Consolidated net sales during the first half ended September 30, 2023 were 114,118 million yen, an increase of 3.2% year on―3―

year; consolidated operating profit was 1,482 million yen, compared to consolidated operating loss of 754 million yen for the
first half of the previous fiscal year; consolidated ordinary profit was 1,738 million yen, compared to consolidated ordinary lossof 515 million yen for the first half of the previous fiscal year; and consolidated profit attributable to owners of parent was 983
million yen, compared to consolidated loss attributable to owners of parent of 575 million yen for the first half of the previous
fiscal year.
Operating results for each segment are as follows:
1) Processed Food Products operations
In the Ham and Sausage Products department, we made efforts to expand sales, including launching “Kunseiya-Ripened
Pork Sausage - Southern Okinawa Island Chili Pepper” in a limited quantity as our second tie-up product with othercompanies from our core product series of “Kunseiya.” Despite a decrease in sales of Japanese summer gifts due mainly tothe shrinking summer gift market, we introduced new products that feature popular characters such as “BT21 Bite-sized Calpas”
and “Haikyu!! Fish Sausage” in order to boost sales. As a result, and thanks partly to price revisions, net sales in the Ham andSausage Products department increased by 1.4% year on year.
In the Precooked & Processed Foods department, we saw robust net sales of products for convenience stores and desserts.
In addition, the sale of the “Salad Chicken” series remained strong, and we strove to promote sales of our flagship “Bistro
Club Beef Curry” series. As a result, net sales of the Precooked & Processed Foods department increased by 5.3% year onyear.
As a result, net sales in the Processed Food Products operations segment amounted to 76,103 million yen, an increase of
3.7% year on year. Despite cost increase factors such as surging raw material costs, the said segment posted segment incomeof 1,146 million yen (compared to segment loss of 767 million yen for the same period of the previous fiscal year), owing toprice revisions and our efforts to reduce costs such as by improving operational efficiency.
2) Meat Products operations
Overall beef sales reached the same level as the same period of the previous year driven by steady demand from therestaurant industry, despite sluggish sales to mass retailers due to consumers’ rising budget consciousness. Regarding pork,
net sales of both domestic and imported pork were higher than the level of the same period of the previous year mainly becauseof strong sales to mass retailers and recovering demand from the restaurant industry.
As a result, net sales in the Meat Products operations segment increased by 2.4% year on year to 37,958 million yen. The
said segment posted segment income of 321 million yen (compared to segment loss of 6 million yen for the same period of
the previous fiscal year).
3) Other
Net sales in Other segment decreased by 16.6% year on year to 56 million yen, and segment income decreased by 26.2%
year on year to 14 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
1,136
2,963
1,826
activities
Net cash provided by (used in) investing(2,928)(3,404)(475)
activities
Net cash provided by (used in) financing
1,184
2,173
989
activities
Net increase (decrease) in cash and cash
(607)
1,732
－
equivalents
Cash and cash equivalents at end of
7,383
8,648
1,265
periodNet cash provided by (used in) operating activities increased by 2,963 million yen due mainly to the recording of depreciationand profit before income taxes, despite a negative factor of an increase in working capital.
Net cash provided by (used in) investing activities decreased by 3,404 million yen due mainly to the purchase of non-current
assets to expand and streamline production facilities and to improve product quality.
Net cash provided by (used in) financing activities increased by 2,173 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, 2023 increased by 1,732 million yen from the end of
the previous fiscal year to 8,648 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 334 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, 2023
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, 2023)(September 30, 2023)

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, 2023
to September 30, 2023

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

As of September 30, 2023
Percentage ofshares held to the
Number of
total number ofshares held
issued shares(Thousands of(excluding sharesshares)of treasury
shares) (%)

Address

Marudai Kyoei Kai

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

2,139

8.60

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

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

1,605

6.45

1,192

4.79

1,050

4.22

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

3.57

Sumitomo Mitsui Trust Bank, Limited

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

864

3.47

Sumitomo Life Insurance Company

2-2-1 Yaesu, Chuo-ku, Tokyo

860

3.46

The Norinchukin Bank

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

642

2.58

DFA INTL SMALL CAP VALUE
PORTFOLIO (Standing proxy: Citibank,N.A., Tokyo Branch)

PALISADES WEST 6300, BEE CAVE ROAD
BUILDING ONE AUSTIN TX 78746 US (6-2730 Shinjuku, Shinjuku ku, Tokyo)
Nakanoshima Central Tower, 2-2-7
Nakanoshima, Kita-ku, Osaka-shi, Osaka

403

1.62

308

1.24

9,954

40.05

Rengo Co., Ltd.
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 1,650,567 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)
1,605 thousand shares
6. The large volume holding report that was made available to the public on August 22, 2023 states that SMBC Nikko
Securities Inc. and its joint holder, Sumitomo Mitsui Banking Corporation, owned the following shares as of August 15,
2023. 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, 2023, the Company does not include its information in the major shareholders
above.
The details of the large volume holding report are as follows:

Name

Address

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

SMBC Nikko Securities Inc.

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

528

1.99

Sumitomo Mitsui Banking Corporation

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

887

3.35

1,416

5.34

Total

－

―7―

(6) Voting rights
1) Issued shares
As of September 30, 2023
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
1,650,500－－

Shares with full voting rights (others)

Common stock

24,820,100

Shares below one unit

Common stock

34,981－－

26,505,581－－

Total number of issued shares

248,201－

Total voting rights held by all
248,201－－
shareholders(Note) The number of shares of common stock in “Shares below one unit” includes 67 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, 2023
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)
1,650,500－

1,650,500

6.22

1,650,500－

1,650,500

6.22

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, 2023 through September 30, 2023) and the first half (from April 1, 2023
through September 30, 2023) 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, 2023)(Millions of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,916
23,897* 28,442

Merchandise and finished goods
Work in process

12,370509

12,711620

Raw materials and supplies
Other

6,351
1,385

7,798
1,267

Allowance for doubtful accounts

8,648

(14)

(14)

51,41659,47563,370(46,038)

63,591(46,656)

Buildings and structures, net

17,332

16,934

Machinery, equipment and vehicles
Accumulated depreciation

74,993(59,653)

76,065(61,401)

15,34014,6634,720(3,432)

4,453(3,179)

1,288

1,273

Land

18,34618,135

Leased assets
Accumulated depreciation

9,122(4,596)

9,374(4,929)

4,526

4,445

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

486

426

57,31955,879Intangible assets

1,573

1,222

Investments and other assets
Investment securities

11,43813,893

262
19

311
17

Retirement benefit asset
Deferred tax assets

1,861
317

2,023
322

Other
Allowance for doubtful accounts

2,172
(120)

2,436
(131)

Total investments and other assets

15,951

18,874

Total property, plant and equipment

Shares of subsidiaries and associates
Long-term loans receivable

Total non-current assets
Total assets―10―

74,84475,975

126,261

135,450

Previous fiscal year
(As of March 31, 2023)(Millions of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2023)

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

20,754
9,858

24,086
14,765Current portion of long-term borrowings
Lease liabilities

2,917
1,024

2,621
1,013

Accounts payable - other
Income taxes payable

6,714
215

5,595
516

Accrued consumption taxes
Provision for bonuses

299
781

339
874

Provision for restructuring
Other

178
1,320

149
1,723

Total current liabilities

44,06351,686Long-term borrowings
Lease liabilities

5,255
3,735

4,089
3,655

Deferred tax liabilities
Retirement benefit liability

1,961
1,467

2,586
1,491

Provision for restructuring
Other

144
620

274
638

Total non-current liabilities

13,183

12,73657,24664,423

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Share capital

6,716

6,716

Capital surplus
Retained earnings

22,08638,38822,08638,871

Treasury shares(3,342)(3,619)Total shareholders’ equity

63,84864,053

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

4,952
0

6,656
40

Foreign currency translation adjustment
Remeasurements of defined benefit plans

56
(526)

74
(504)

Total accumulated other comprehensive income

4,483

6,265

Accumulated other comprehensive income

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

―11―

682

707

69,01471,027

126,261

135,450

(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, 2022 toSeptember 30, 2022)
110,557
95,364(Millions of yen)First half ofcurrent fiscal year
(From April 1, 2023 to
September 30, 2023)
114,118
96,902Gross profit

15,193

17,215

Selling, general and administrative expenses*1 15,947*1 15,732

Operating profit (loss)

(754)

1,482

Non-operating income
Interest income

87Dividend income
Rental income from real estate

162
75

166
71

Other

133

176

Total non-operating income

380

422

112
28

117
49

Non-operating expenses
Interest expenses
Other
Total non-operating expenses

141

166

(515)

1,738

Gain on disposal of non-current assets

41

4

Total extraordinary income

41

4

124

36

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Restructuring expenses

8

3

－

*2 438

Total extraordinary losses

132

479

Profit (loss) before income taxes

(607)

1,264

Income taxes - current

110

389

Income taxes - deferred

(150)

(137)

Total income taxes

(40)

252

Profit (loss)

(567)

1,011

Profit attributable to non-controlling interests

828

Profit (loss) attributable to owners of parent

(575)

983

―12―

Quarterly Consolidated Statements of Comprehensive Income[First half of fiscal year]
First half ofprevious fiscal year
(From April 1, 2022 toSeptember 30, 2022)(567)(Millions of yen)First half ofcurrent fiscal year
(From April 1, 2023 to
September 30, 2023)
1,011

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

(126)
29

1,703
39

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

35

21

27

17

Profit (loss)
Other comprehensive income

Comprehensive income

(34)

1,782

(601)

2,794

(609)

2,765

8

28

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, 2022 toSeptember 30, 2022)
56,07448,549(Millions of yen)
Second quarter ofcurrent fiscal year
(From July 1, 2023 to
September 30, 2023)
57,854
49,212Gross profit

7,524

8,641

Selling, general and administrative expenses

8,243

8,133

Operating profit (loss)

(718)

508

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

4

3

159
38

157
36

Other

50

59

Total non-operating income

253

256

57
14

59
21

Non-operating expenses
Interest expenses
Other
Total non-operating expenses

71

80

(536)

684

Gain on disposal of non-current assets

36

4

Total extraordinary income

36

4

104

17

8

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Restructuring expenses

－

3
438

Total extraordinary losses

113

459

Profit (loss) before income taxes

(614)

228

Income taxes - current

(35)

61

Income taxes - deferred

(53)

157

Total income taxes

(88)

218

Profit (loss)

(525)

9

(6)

3

(519)

6

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent―14―

Quarterly Consolidated Statements of Comprehensive Income[Second quarter of fiscal year]
Second quarter ofprevious fiscal year
(From July 1, 2022 toSeptember 30, 2022)(525)(Millions of yen)
Second quarter ofcurrent fiscal year
(From July 1, 2023 to
September 30, 2023)
9

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

261
14

706
39

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

17

11

11

9

Profit (loss)
Other comprehensive income

Comprehensive income

306

766

(219)

776

(213)

772

(6)

3

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, 2023 to
September 30, 2023)

First half ofprevious fiscal year
(From April 1, 2022 toSeptember 30, 2022)
Cash flows from operating activities
Profit (loss) before income taxes

(607)

1,264

3,767
8

3,524
3

Restructuring expenses
Increase (decrease) in allowance for doubtful accounts

－
(11)

438
10

Increase (decrease) in retirement benefit liability
Interest and dividend income

(94)
(171)

(108)
(173)

Interest expenses
Loss (gain) on disposal of non-current assets

112
83

117
31

Decrease (increase) in trade receivables
Decrease (increase) in inventories(601)(3,344)(4,555)(1,897)

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

2,054
(56)

3,332
39

Other, net

(80)

898

Subtotal

1,059

2,926

Interest and dividends received
Interest paid

194
(112)

174
(117)

Income taxes paid
Income taxes refund

(144)
159

(247)
261

Depreciation
Impairment losses

Extra retirement payments
Net cash provided by (used in) operating activities

(19)

(34)

1,136

2,963

(18)
(3,012)(18)(3,355)

153
(51)

10
(40)

(2,928)(3,404)

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

4,151

4,907

(1,413)(517)(1,461)
(490)

(755)
(276)

(500)
(277)

(3)

(3)

1,184

2,173

Net increase (decrease) in cash and cash equivalents

(607)

1,732

Cash and cash equivalents at beginning of period

7,990

6,916

* 7,383* 8,648

Net cash provided by (used in) financing activities

Cash and cash equivalents at end of period―16―

[Notes](Uncertainties of entity's ability to continue as going concern)
Not applicable.
(Quarterly consolidated balance sheets)* Notes maturing at the end of the quarter are settled on their clearing days.
As the end of the second quarter of the current fiscal year falls on a bank holiday, the following notes maturing at the end of the quarter
have been included in the balance at the end of the quarter.
Previous fiscal year
(As of March 31, 2023)
Notes receivable - trade－

Second quarter ofcurrent fiscal year
(As of September 30, 2023)
16 million yen(Quarterly consolidated statements of income)*1 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, 2022
to September 30, 2022)
6,003 million yen

First half of current fiscal year
(From April 1, 2023
to September 30, 2023)
5,946 million yen

3,127 million yen
478 million yen

2,999 million yen
478 million yen

145 million yen
2 million yen

122 million yen
12 million yen

Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision of allowance for doubtful accounts*2 Restructuring expenses

Restructuring expenses involve losses incurred by the decision to implement restructuring, including the reorganization of production
sites, and consist of impairment losses for the production facilities, etc. of Marudai Food Co., Ltd. and other related expenses.
(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, 2022
to September 30, 2022)
7,383 million yen

First half of current fiscal year
(From April 1, 2023
to September 30, 2023)
8,648 million yen

7,383 million yen

8,648 million yen

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

First half of the previous 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.

―17―First half of current fiscal year (From April 1, 2023 to September 30, 2023)
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 28, 2023

Commonstock

500

March 31, 2023

June 29, 2023

Retainedearnings

20

2. Dividends whose record date falls in the first half ended September 30, 2023, but whose effective date comes after September 30,
2023
Not applicable.
(Segment information, etc.)[Segment information]
I. First half of the previous 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
Reportable segment
Other(Note) 1(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

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

Total

Total

Net sales

－

－

－

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)

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 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 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, 2023 to September 30, 2023)
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

31,770－31,770－31,770－31,770Precooked & Processed
Foods

44,333－44,333－44,333－44,333Meat Products operations－

37,95837,958－37,958－37,958

Other

－

－

－

56

56

－

56

Revenues generated fromcontracts with customers

76,10337,958114,06256

114,118－

114,118

Sales to external customers

76,10337,958114,06256

114,118－

114,118

－

－

－

412

412

(412)

－

Total

76,10337,958114,062468

114,530(412)

114,118

Segment income

1,146

321

1,468

14

1,482

－

1,482

Total

Total

Net salesIntersegment sales andtransfers(Notes) 1. The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
2. Segment income 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)
Reportable segment

Impairment losses (Note) 1

Processed
Food
Products
operations

Meat
Products
operations

331

－

Other

Total

Total
331

－

331

(Millions of yen)Amountrecorded on
Adjustments the quarterly(Note) 2 consolidated
statement ofincome3335(Notes) 1. 331 million yen in the “Processed Food Products operations” segment has been recorded as “Restructuring expenses.”
2. Impairment losses of 3 million yen have been recognized due to decrease in recoverable value for real estate for rent andother not belonging to any segment.

―19―III. Second quarter of previous 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 previous fiscal year due to decrease inrecoverable value for real estate for rent and other not belonging to any segment.

―20―

IV. Second quarter of current fiscal year (From July 1, 2023 to September 30, 2023)
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

16,260－16,260－16,260－16,260Precooked & Processed
Foods

22,537－22,537－22,537－22,537

Meat Products operations－

19,03019,030－19,030－19,030

Other

－

－

－

25

25

－

25

Revenues generated fromcontracts with customers

38,797

19,03057,82825

57,854－57,854

Sales to external customers

38,797

19,03057,82825

57,854－57,854

－

－

－

217

217

(217)

－

Total

38,797

19,03057,828243

58,071(217)

57,854

Segment income

447

54

502

6

508

－

508

Total

Total

Net salesIntersegment sales andtransfers(Notes) 1. The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
2. Segment income 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)
Reportable segment

Impairment losses (Note) 1

Processed
Food
Products
operations

Meat
Products
operations

331

－

Other

Total

Total
331

－

331

(Millions of yen)Amountrecorded on
Adjustments the quarterly(Note) 2 consolidated
statement ofincome3335(Notes) 1. 331 million yen in the “Processed Food Products operations” segment has been recorded as “Restructuring expenses.”
2. Impairment losses of 3 million yen have been recognized due to decrease in recoverable value for real estate for rent andother 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:
Item

First half of previous fiscal year
(From April 1, 2022
to September 30, 2022)

First half of current fiscal year
(From April 1, 2023
to September 30, 2023)(22.87 yen)

39.34 yen

Profit (loss) per share(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.

(575)

983

－

－

(575)

983

25,16524,990

Second quarter of fiscal year
The amounts of profit (loss) per share and the basis of calculation thereof are as follows:
Item

Second quarter of previous fiscal year
(From July 1, 2022
to September 30, 2022)

Profit (loss) per share(20.68 yen)

Second quarter of current fiscal year
(From July 1, 2023
to September 30, 2023)

0.27 yen(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.

2. Other
Not applicable.

―22―

(519)

6

－

－

(519)

6

25,13524,961

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

―23―Independent Auditors’ Review Report on Quarterly Consolidated Financial Statements
November 13, 2023
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, 2023 to September 30, 2023) and the first half (from April 1, 2023 to September 30, 2023) of the fiscal
year from April 1, 2023 to March 31, 2024, 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, 2023, 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
measures that are in place to eliminate obstacles or any safeguards that are in place to reduce obstacles to a permissible level.

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 original copy of the above Independent Auditors’ Review Report on Quarterly Consolidated Financial Statements ismaintained 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, 2023

[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 76th fiscal year (from July 1, 2023 to September 30, 2023) 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